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Your Directors present the 11th Annual Report and the audited financial statement for the financial year ended March 31, 2015.
During the year under review, your Company has earned income of Rs. 11,136 crore against Rs. 12,445 crore in the previous year. The Company has incurred a loss of Rs. 154 crore for the year as compared to profit of Rs. 730 crore in the previous year.
The performance and financial position of the subsidiary companies and associate companies are included in the consolidated financial statement of the Company and presented in the Management Discussion and Analysis forming part of this Annual Report.
During the year under review, the Board of Directors has not recommended any dividend on the equity shares of the Company.
The Company together with its subsidiary companies operates on a pan–India basis offers full value chain of wireless (CDMA and GSM including 3G services), wireline, national long distance, international, voice, data, video, Direct–To–Home (DTH) and internet based communications services under various business units organised into strategic geographical business units: India Operations and Global Operations.
These strategic business units are supported by passive infrastructure connected to nationwide backbone of Optic Fibre Network as well as fully integrated network operation system and by the largest retail distribution and customer services facilities. The Company also owns through its subsidiary company, a global submarine cable network infrastructure and offers managed services, managed Ethernet and application delivery services.
The Department of Telecommunications (DoT) conducted auction for the 800, 900, 1800 and 2100 MHz spectrum in March 2015. The Company successfully bid for its requirements in the 10 service areas and won additional/top up spectrum in 1800 MHz in Haryana, Karnataka and Punjab and in 800 MHz in Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Kolkata, Odisha, Punjab, Uttat Pradesh (West) and West Bengal service areas. The validity of the above spectrum will be for a fresh 20 year period starting from the effective date as mentioned in the Letter of Intent (LOI), which in case of spectrum blocks currently held by the existing licensees, is the date of expiry of existing licenses. The LOIs have been issued on 27/28 May, 2015. As per the payment options available, the Company has chosen the deferred payment option.
Management Discussion and Analysis
Management Discussion and Analysis Report for the year under review as stipulated under Clause 49 of the Listing Agreement with the Stock Exchanges in India is presented in a separate section forming part of this Annual Report.
Share Capital / Fund Raising Programme
During the year under review, the Company allotted 33,82,86,197 equity shares of Rs. 5/– each at a offer price of Rs. 142.14 per equity share (including a Share premium of Rs. 137.14 per equity share) under Qualified Institutional Placement (QIP) to Qualified Institutional Buyers on July 2, 2014 and received an amount aggregating to Rs. 4,808.40 crore. The Company had also allotted 8,66,66,667 Warrants entitling the subscribers to subscribe to equivalent number of Equity Shares of Rs. 5/– each at a price of Rs. 150/– per Warrant (including Share premium of Rs. 145/– per Equity Share) aggregating to Rs. 1,300 crore under preferential allotment to the Promoter Group entity and allotted 8,66,66,667 equity shares to the Promoter Group entity, against said Warrants on January 20, 2015. The fund raised were utilised as per the object/purpose for which it was raised. The Paid up share capital of the Company was increased from Rs. 1032.01 crore to Rs. 1244.49 crore. This was the maiden QIP and Preferential Issue of the Company.
During the current financial year 2015–16, the Company issued and allotted foreign currency Senior Secured Notes on May 6, 2015 amounting to US$ 300 mn (Rs. 1,909 crore). The Notes have a tenor of 5