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in India Transmission equipment Terminal equipment Access equipment Fibre optic cable Turnkey services to various operators and large multinationals operating in the country
Manufacturing operations Solan in Himachal Pradesh Verna in Goa Penchant for Controversy : Outrageous bids of Rs 86,000 crore to snare 13 telecom circles in 1995 Sukhram Telecom scandal Association with Ketan Parekh Deal with Kerry Packer (Channel 9) Highest Share Price : 2,552.90 ( Year 2000) & Lowest Share Price : 5.95 (Year 2008)
2000 -01 : Enters into dotcom space, 45% stake in online shopping mall jaldi.com Promoters acquire stake in IVRCL Infrastructures & Projects Ltd., a construction major
2003 : ICICI Bank converts part of its loan into 12.65% stake in the company 2003: Business restructuring exercise to improve efficiency
1989 : IPO
2002: GTB recalls all short-term loans amounting to Rs.185cr from HFCL
HTL
HFCL Infotel
HTL
HFCL Infotel
Moneta Finance
HTL
HFCL Infotel
Moneta Finance
HTL
Moneta Finance
Strengths Core expertise in telecom equipment manufacturing & services Strong client base
Liquidity problems
Inadequate WC Strong manufacturing set up Lack of stability Opportunities Govt emphasis on expanding potential & reach of telecommunication (allocation of 3G licenses) Greater shift towards contract manufacturing Threats Change in government policies Intense competition from multinationals and small companies
Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
High
65 50 110 80 180 145 70 25 56.05 692.05
Low
20 15 35 32 52.5 42 11.75 12.55 11 35
Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
High
2,552.90 1,409.80 104.25 41 26.1 28.6 49.65 46.85 62.6 17.4 17.4 21.35
Low
646.05 24.9 31.55 11.25 7.2 14.75 18 16.9 5.95 6.65 9.85 7.85
Income
Income from Sales & services ~ expense on COGS & other expenses
Rs 000s 885,526 21,379 Expenditure COGS Manufacturing & other expenses Rs 000s 611,332 249,367
Total
864,147
Total
860,699
Debts outstanding for a period > 6 months ~ Rs 286 crores + other debts (considered good) ~ 47 crores
Waiver of loan & interest ~ Rs 228 crore considered in other income due to which profit of Rs 40 crore is reported
Debt of the Company were earlier restructured under Corporate Debt Restructuring (CDR) mechanism in April 2004 which was subsequently modified in June 2005. The CDR was revised in 2011 as under :
Reduction in existing payable rate of interest Rescheduling & longer period of repayment of loans Conversion of overdue interest into FITL Conversion of ZCPBs, part of their premium into Equity Conversion of WC loans into Equity Conversion of part of WC loan into WCTL Waiver of unpaid dividend on preference shares Waiver of penal interest Additional infusion of funds by promoters
Payment of outstanding principal amount of secured loan amounting to Rs 102.5 crore in 84 monthly installments @ 10% pa from April 2012 to March 2019
WC loan to be converted to WCTL ~ 32 crore to be repaid in 84 monthly installments from April 2012 to March 2019
One time settlement of Funded Interest Term Loans (FITL) at 25 % of the total outstanding, rest has been waived off, i.e. payment of Rs 16.18 crore by 30th September 2011
ZCPBs ~ Rs 195 crores + part of premium accrued ~ 31 crores to be converted into equity Secured WC loan ~ 17 crores to be converted into equity Interest accrued on TL of Rs 79.4 crores is converted into FITL to be repaid in 3 equal installments from 2016 to 2018 There would be no change in the control of the company. The promoters would continue to hold majority stake
99.24
80.50 222.00 0.00 401.74 278.10 353.88
123.99
80.50 341.54 0.00 546.02 278.10 110.36
Total Debt
Total Liabilities
631.98
1,033.72
388.46
934.48
Conversion into WCTL Secured & unsecured WC loans Existing WCTL Total Repayment
2
240,545 76,406 316,951 84 monthly installments from April 2012 to March 2019 45,279 647,346 485,510 161,837
Outstanding Principal amount of secured loan Secured loan 1,024,584 84 monthly installments Repayment from April 2012 to March 2019 Interest rate 10% Yearly outgo 210,455 New FITL Interest accrued on TL Repayment
Yearly outgo
Existing FITL Amount 75% waived Settlement on OTS basis @ 25% payable on 30th Sept 2011
287,200
3 equal installments from 2016 to 2018
One WC lender having total outstanding of Rs 16 crore has not agreed to CDR programme Fresh proposal is under discussion with lender
Appoint a professional CEO instead of the promoters holding the day to day reins