Rcom Analyst Report

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Strategy, SWOT and Corporate Finance Report

(includes detailed five-year financials)
Reliance Communications Limited

Mumbai Stock Exchange (532712 ) June 14, 2011
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Company Snapshot
Company Snapshot
Reference Code : A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7 Reliance Communications Limited H Block 1st Floor Dhirubhai Ambani Knowledge City Navi Mumbai 400 710 India Fax: 91 22 3037 6622 Phone: 91 22 3037 3333 Website: www.rcom.co.in Industry: Communications Publication Date: June 2011 Revenues (US$m) : 4,367 Net profit (US$m): 982 Employees: 30,974 Primary Stock Exchange (Ticker): Mumbai Stock Exchange (532712 )
Overview
Reliance Communications (RCOM or "the company") is an integrated communications service provider in India. The company is part of the Reliance Anil Dhirubhai Ambani Group. RCOM serves consumer, enterprise and carrier customers. It operates a full spectrum of wireless, wireline, and long distance, voice, data, video and internet communication services. It also offers direct-to-home (DTH) TV services under the brand, Big TV. The company also participates in submarine cable network infrastructure, and owns, operates and develops telecom infrastructure, such as wireless communications sites and towers. The company primarily operates in India, where it is headquartered in Mumbai and employs 30,974 people. The company recorded revenues of INR206,850.5 million ($4,366.6 million) during the financial year ended March 2010 (FY2010), a decrease of 0.3% over 2009. The operating profit of the company was INR34,380.7 million ($725.8 million) in FY2010, a decrease of 32.9% over 2009. Its net profit was INR46,550 million ($982.7 million) in FY2010, a decrease of 23% over 2009.
SWOT
Strengths Well integrated operations Strong brand recognition Significant operations of Reliance Globalcom and Reliance Communications Infrastructure Weaknesses Decreasing ARPU Concentrated geographic operations Significant debt
Opportunities Low penetration rates Growth of pay-TV market Launch of 3G services
Threats Increasing competition Regulations
Key Employees
Employee Name Hasit Shukla Job Title President, Company Secretary and Manager Board Senior Management
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Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
Company Snapshot
A. K. Purwar Anil D. Ambani Deepak Shourie
Director Chairman Director
Non Executive Board Non Executive Board Non Executive Board
Financial Overview
Reliance Communications Limited: Revenue to Net Income (2007-2010) Reliance Communications Limited: Profitability Ratios (2007-2010)
Recent Developments
Date Feb 22, 2011 Jan 18, 2011 Headline Reliance selects Ericsson's eStore platform Reliance Globalcom deploys Ciena for 40G optical networking solution Reliance Globalcom signs five-year contract with Attijariwafa bank Reliance Communications and Verizon Wireless sign distribution agreement Category Sourcing Sourcing
Jun 15, 2010
Supply contracts Commercialization and distribution contracts (incl. franchises)
Mar 26, 2010
Table of Contents
Table of Contents
Company Snapshot __________________________________________________________________ 2 Table of Contents ____________________________________________________________________ 4 Reliance Communications Limited: Company Overview ____________________________________ 8 Reliance Communications Limited: Overview and Key Facts ____________________________ 8 Reliance Communications Limited: Overview __________________________________________ 8 Reliance Communications Limited: Key Facts __________________________________________ 8 Reliance Communications Limited: Key Employees __________________________________ 10 Reliance Communications Limited: Key Employee Biographies ________________________ 11 Reliance Communications Limited: Major Products and Services _______________________ 13 Reliance Communications Limited: Company History _________________________________ 15 Reliance Communications Limited: Management Statement ___________________________ 17 Reliance Communications Limited: Locations and Subsidiaries ________________________ 20 Reliance Communications Limited: Key Competitors _________________________________ 22 Reliance Communications Limited: Company Analysis ___________________________________ 23 Reliance Communications Limited: Business Description _____________________________ 23 Reliance Communications Limited: SWOT Analysis __________________________________ 25 Reliance Communications Limited: SWOT Overview ___________________________________ 25 Reliance Communications Limited: Strengths _________________________________________ 25 Reliance Communications Limited: Weaknesses ______________________________________ 27 Reliance Communications Limited: Opportunities ______________________________________ 28 Reliance Communications Limited: Threats ___________________________________________ 29 Reliance Communications Limited: Financial Analysis ________________________________ 31 Reliance Communications Limited: Financial Overview __________________________________ 31 Reliance Communications Limited: Five Year Company Financials ________________________ 32 Reliance Communications Limited: Key Income Statement Data __________________________ 32 Reliance Communications Limited: Key Balance Sheet Data _____________________________ 33 Reliance Communications Limited: Key Cash Flow Data ________________________________ 34 Reliance Communications Limited: Key Market Data ___________________________________ 35 Reliance Communications Limited: Corporate Financial Deals Activity ______________________ 37 Reliance Communications Limited: Financial Deals Overview __________________________ 37 Reliance Communications Limited: Targets and Partners ______________________________ 39 Reliance Communications Limited: Top Deals 2007 -YTD*2011 _________________________ 40
Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7 Page 4 www.datamonitor.com
Table of Contents
Reliance Communications Limited: Advisors ________________________________________ 41 Reliance Communications Limited: Top Legal Advisors _________________________________ 41 Reliance Communications Limited: Top Financial Advisors _______________________________ 41 Reliance Communications Limited: Mergers and Acquisitions__________________________ 43 Reliance Communications Limited: Partnership ______________________________________ 44 Reliance Communications Limited: Divestments _____________________________________ 45 Reliance Communications Limited: Private Equity and Ownership ______________________ 46 Reliance Communications Limited: Recent Developments_________________________________ 47 Reliance Communications Limited: News and Events Summary ________________________ 47 Reliance Communications Limited: Contracts _______________________________________ 48 Reliance Communications Limited: Financial Performance ____________________________ 49 Reliance Communications Limited: IT Spending Announcements _______________________ 49 Appendix __________________________________________________________________________ 50 Contact Us ____________________________________________________________________ 50 Methodology ___________________________________________________________________ 50 Definitions _____________________________________________________________________ 51 About Datamonitor ______________________________________________________________ 55
Table of Contents
List of Tables
Table 1: Reliance Communications Limited: Key Facts _________________________________________________ 8 Table 2: Reliance Communications Limited: Key Employees____________________________________________ 10 Table 3: Reliance Communications Limited: Locations and Subsidiaries _________________________________ 20 Table 4: Reliance Communications Limited: Key Competitors __________________________________________ 22 Table 5: Reliance Communications Limited: Deal Activity by Deal Type - Volume (TTM) _____________________ 37 Table 6: Reliance Communications Limited: M&A Activity by Geography (TTM) ____________________________ 37 Table 7: Reliance Communications Limited: Deal Activity by Deal Type - Volume (2007 - YTD*2011) ___________ 38 Table 8: Reliance Communications Limited: M&A Average Deal Size - Value (US$m) _______________________ 38 Table 9: Reliance Communications Limited: Targets and Partners _______________________________________ 39 Table 10: Reliance Communications Limited: Top Deals 2007 -YTD*2011 _________________________________ 40 Table 11: Reliance Communications Limited: Legal Advisor Ranking by Value (US$m)______________________ 41 Table 12: Reliance Communications Limited: Financial Advisor Ranking by Value (US$m) __________________ 41 Table 13: Reliance Communications Limited: M&A Volume and Value Trend (2007 - YTD*2011) ______________ 43 Table 14: Reliance Communications Limited: M&A Activity by Geography (2007 - YTD*2011) ________________ 43 Table 15: Reliance Communications Limited: Partnership Volume and Value Trend (2007 - YTD*2011)_________ 44 Table 16: Reliance Communications Limited: Partnership Trend by Deal Type (2007 - YTD*2011) _____________ 44 Table 17: Reliance Communications Limited: Divestments Volume and Value Trend (2007 - YTD*2011) ________ 45 Table 18: Reliance Communications Limited: Divestments by Geography (2007 - YTD*2011) _________________ 45 Table 19: Reliance Communications Limited: Private Equity and Ownership Volume and Value Trend (2007 - YTD*2011) _______________________________________________________________________________________________ 46 Table 20: Reliance Communications Limited: Private Equity and Ownership Volume by Deal Type (2007 - YTD*2011) 46 Table 21: Reliance Communications Limited: News and Events Summary ________________________________ 47 Table 22: Reliance Communications Limited: Contracts _______________________________________________ 48 Table 23: Reliance Communications Limited: Financial Performance ____________________________________ 49 Table 24: Reliance Communications Limited: IT Spending Announcements _______________________________ 49
Table of Contents
List of Figures
Figure 1: Reliance Communications Limited: Revenue to Net Income (2007-2010) __________________________ 32 Figure 2: Reliance Communications Limited: Revenue/Employee to Net Income/Employee (2007-2010) ________ 32 Figure 3: Reliance Communications Limited: Current Assets to Current Liabilities (2007-2010) _______________ 33 Figure 4: Reliance Communications Limited: Assets, Liabilities to Total Equity (2007-2010) _________________ 33 Figure 5: Reliance Communications Limited: Free Cash Flow to Cash from Operating Activities (2007-2010) ___ 34 Figure 6: Reliance Communications Limited: Net Change in Cash (2007-2010) _____________________________ 34 Figure 7: Reliance Communications Limited: Market Capitalization to Year-end Share Price (2007-2010) _______ 35 Figure 8: Reliance Communications Limited: Enterprise Value (2007-2010) _______________________________ 35 Figure 9: Reliance Communications Limited: Deal Activity by Deal Type - Volume (TTM) ____________________ 37 Figure 10: Reliance Communications Limited: M&A Activity by Geography (TTM) __________________________ 37 Figure 11: Reliance Communications Limited: Deal Activity by Deal Type - Volume (2007 - YTD*2011) _________ 38 Figure 12: Reliance Communications Limited: M&A Average Deal Size - Value (US$m) ______________________ 38 Figure 13: Reliance Communications Limited: M&A Volume and Value Trend (2007 - YTD*2011) ______________ 43 Figure 14: Reliance Communications Limited: M&A Activity by Geography (2007 - YTD*2011) ________________ 43 Figure 15: Reliance Communications Limited: Partnership Volume and Value Trend (2007 - YTD*2011) ________ 44 Figure 16: Reliance Communications Limited: Partnership Trend by Deal Type (2007 - YTD*2011) ____________ 44 Figure 17: Reliance Communications Limited: Divestments Volume and Value Trend (2007 - YTD*2011) _______ 45 Figure 18: Reliance Communications Limited: Divestments by Geography (2007 - YTD*2011) ________________ 45 Figure 19: Reliance Communications Limited: Private Equity and Ownership Volume and Value Trend (2007 - YTD*2011) Figure 20: Reliance Communications Limited: Private Equity and Ownership Volume by Deal Type (2007 - YTD*2011)46 46
Reliance Communications Limited: Company Overview

Reliance Communications Limited: Overview and Key Facts
Reliance Communications Limited: Overview
Reliance Communications (RCOM or "the company") is an integrated communications service provider in India. The company is part of the Reliance Anil Dhirubhai Ambani Group. RCOM serves consumer, enterprise and carrier customers. It operates a full spectrum of wireless, wireline, and long distance, voice, data, video and internet communication services. It also offers direct-to-home (DTH) TV services under the brand, Big TV. The company also participates in submarine cable network infrastructure, and owns, operates and develops telecom infrastructure, such as wireless communications sites and towers. The company primarily operates in India, where it is headquartered in Mumbai and employs 30,974 people. The company recorded revenues of INR206,850.5 million ($4,366.6 million) during the financial year ended March 2010 (FY2010), a decrease of 0.3% over 2009. The operating profit of the company was INR34,380.7 million ($725.8 million) in FY2010, a decrease of 32.9% over 2009. Its net profit was INR46,550 million ($982.7 million) in FY2010, a decrease of 23% over 2009.
Reliance Communications Limited: Key Facts
Table 1: Reliance Communications Limited: Key Facts Corporate Address: H Block 1st Floor Dhirubhai Ambani Knowledge City Navi Mumbai 400 710 Country: Fax: Phone: Web Address: Turnover (US$m): Employees: Financial Year End: Industry: India 91 22 3037 6622 91 22 3037 3333 www.rcom.co.in 4,367 30,974 March Communications
Primary Stock Exchange (Ticker):

SOURCE: DATAMONITOR
Mumbai Stock Exchange (532712 )

DATAMONITOR
Reliance Communications Limited: Key Employees

Table 2: Reliance Communications Limited: Key Employees Employee Name Hasit Shukla A. K. Purwar Anil D. Ambani Deepak Shourie J. Ramachandran S. P. Talwar
SOURCE:DATAMONITOR
Job Title President, Company Secretary and Manager Director Chairman Director Director Director
Board Senior Management Non Executive Board Non Executive Board Non Executive Board Non Executive Board Non Executive Board
Age 47 64 51 61 53 71
DATAMONITOR
Reliance Communications Limited: Key Employee Biographies

Hasit Shukla Mr. Shukla is the President, Company Secretary and Manager at RCOM. He has been the Manager at the company since 2006. Mr. Shukla is a Fellow Member at Institute of Company Secretaries of India. He has over 27 years experience in corporate secretarial, legal, finance and managerial functions. Board: Senior Management Job Title: President, Company Secretary and Manager Age: 47
A. K. Purwar Mr. Purwar is a Director at RCOM. He was the former Chairman and Managing Director at State Bank of India (SBI). Mr. Purwar also served as the Managing Director at State Bank of Patiala. He is a Director at Vardhman Textiles, Jindal Steel and Power, Jindal Power, India Infoline Investment Services, Deccan Infrastructure and Land Holdings, Apollo Tyres, Engineers India, IL&FS Renewable Energy and India Infoline. Mr. Purwar has been associated with a number of prestigious academic institutions, committees set up by various State and Central Governments and international institutions. Board: Non Executive Board Job Title: Director Age: 64
Anil D. Ambani Mr. Ambani is the Chairman at RCOM. He is also the Chairman at Reliance Capital, Reliance Infrastructure, Reliance Natural Resources and Reliance Power. Mr. Ambani also serves on the Board at Reliance Infratel and Reliance Anil Dhirubhai Ambani Group. He is the President at Dhirubhai Ambani Institute of Information and Communication Technology, Gandhinagar, Gujarat. Mr. Ambani has been associated with a number of prestigious academic institutions in India and abroad. He is currently a Member at Wharton Board of Overseers, The Wharton School; Board of Governors, Indian Institute of Management, Ahmedabad; and Executive Board, Indian School of Business, Hyderabad. Board: Non Executive Board Job Title: Chairman Age: 51
Deepak Shourie Mr. Shourie is a Director at RCOM. He has more than 39 years' exposure with an emphasis on media, consumer goods, and corporate affairs. Mr. Shourie was the Executive Vice President and Managing Director at Discovery Communications of India.

Board: Non Executive Board Job Title: Director Age: 61
J. Ramachandran Mr. Ramachandran is a Director at RCOM. He is the Chair Professor of Business Policy at the Indian Institute of Management, Bangalore. Mr. Ramachandran is a qualified Chartered Accountant and Cost Accountant. He is also a Director at Reliance Communications Infrastructure, Sasken Communication Technologies, Redington (India), Bhoruka Power, Indofil Organic Industries, Tejas Networks and Infotech Enterprises. Board: Non Executive Board Job Title: Director Age: 53
S. P. Talwar Mr. Talwar is a Director at RCOM. He was a former Deputy Governor at Reserve Bank of India. Mr. Talwar also served as the Chairman-cum-Managing Director at Bank of Baroda, Union Bank of India and Oriental Bank of Commerce. He has vast experience in financial services sector in India. Mr. Talwar is also a Director at Crompton Greaves, Reliance Communications Infrastructure, Reliance General Insurance, Reliance Infratel, Videocon Industries, Reliance Life Insurance, AB Hotels, Housing Development and Infrastructure, Kalpataru Power Transmission, Uttam Galva Steels and GTL Infrastructure. Board: Non Executive Board Job Title: Director Age: 71
Reliance Communications Limited: Major Products and Services

Reliance Communications (RCOM or "the company") is an integrated communications service provider in India. The company's key products and services include the following:
Consumer: Mobile (CDMA and GSM) Calling cards Wireless phone Wireless terminal BlackBerry Roaming Landline phone Fixed wireless phone Handsets Wireless broadband Virtual calling cards Direct-to-home TV IPTV 3G services Global calling Business services: Voice solutions Office centrex E1-DID OneOffice duo Audio conferencing Toll free services ITFS Data solutions Internet Business broadband internet Leased line Ethernet leased lines IPLC VPN SSL VPN WDVPN Video conferencing Internet data center: DC build and maintain Colocation services Managed hosting services IT infrastructure services

Managed security services Application management services Brands: Reliance Mobile Reliance Hello Reliance Netconnect Reliance Mobile World Reliance Big TV Reliance World
Reliance Communications Limited: Company History

The foundation of Reliance Communications (RCOM) was laid in 1999, when Reliance Infocomm began project planning as business unit of Reliance Industries Limited. In the following year, the company stated optic fiber laying process in the states of Gujarat, Andhra Pradesh and Maharashtra. In 2002, its first base transceiver station was made 'ready for electronics'. Subsequently, the company obtained international long distance (ILD) license, commissioned first optic fiber backbone ring and established first point of interconnect (POI) in New Delhi. Towards the end of the year, Reliance Infocomm was e-inaugurated. The company introduced its Reliance IndiaMobile service in 2003. Subsequently, it launched Reliance WebWorld in top 16 cities and ILD services. RCOM commissioned all backbone rings and launched Reliance IndiaPhone fixed wireless phone and terminal. In the following year, FLAG Telecom, an international wholesale telecommunications service provider, amalgamated with Reliance Gateway, a wholly owned subsidiary of Reliance Infocomm. Subsequently, FLAG Telecom, a subsidiary of the company, announced FALCON Project, a new Middle East loop terabits submarine cable system with links to Egypt and Hong Kong through India. In the same year, Reliance Infocomm introduced World Card, a prepaid international calling card for making international calls from India. In 2005, the company introduced first e-recharge facility in CDMA in India. In the same year, Reliance Infocomm launched international roaming facility across several countries. Subsequently, Reliance Infocomm and China Telecom signed an agreement to provide direct telecommunication service, including a global hubbing service, to subscribers in the two countries. As part of the demerger of the Reliance Industries in 2006, the company was separated as individual publicly listed company, Reliance Communications Ventures Limited (RCVL). The company included Reliance Infocomm and Reliance Telecom, and was listed on the Bombay Stock Exchange and National Stock Exchange. Subsequently, RCVL was renamed as Reliance Communications Limited (RCOM). In the same year, T-Com signed contract with FLAG Telecom for Europe-US bandwidth. In the following year, RCOM demerged the tower business into a separate company, Reliance Telecom Infrastructure Limited (RTIL). In the same year, the company sold equity stake in its tower company, RTIL. The company also signed an agreement with SUN TV to offer video streaming of all SUN TV programs online 24x7. At the end of the year, RCOM launched nationwide GSM services under existing unified access service licenses. In 2007, the company completed the acquisition of Yipes Holdings, a provider of managed Ethernet and application delivery services for the global enterprise. In 2008, the company received start-up GSM spectrum. In the same year, it consolidated global telecom business under Business Globalcom, and expanded into international mobile market with GSM license in Uganda. Subsequently, RCOM entered the IT space by launching Reliance Technology Services. Reliance Globalcom unit Reliance Infocom BV, Netherlands acquired global WiMAX operator eWave World. Also, in the same year, the company formed a joint venture with Alcatel Lucent to offer managed network services to telcos across the globe. Reliance Globalcom acquired UK based global managed network services provider, VANCO Group in 2008. During the same year, Reliance Globalcom and Stealth Communications formed a strategic alliance to extend VoIP network across 50 countries. Subsequently, Reliance Globalcom and Internap Network Services, a provider for end-to-end internet business solutions, signed a strategic business alliance to provide a broad set of content and application delivery network services to Indian businesses. RCOM launched its direct-to-home DTH TV services, BIG TV, in 2008. At the end of 2008, the company launched GSM service across India covering over 1 billion people in 24,000 towns and 600,000 villages, which is one of the widest one-time launches. In March 2009, RCOM launched its CDMA wireless broadband service, Reliance Netconnect Broadband Plus, India's fastest internet service with downlink speed of upto 3.1 Mbps and a separate uplink speed of upto 1.8

Mbps. In May 2009, the company's shareholders approved scheme of arrangement for demerger of fiber optic division to Reliance Infratel, a subsidiary of RCOM. In the following month, KRIBHCO, a co-operative society with a marketing network in rural India, and Reliance Communications Infrastructure, signed an agreement to form a joint venture company, KRIBHCO Reliance Kisan, which will utilize the respective strengths of KRIBHCO and Reliance ADA Group to catalyze tele-density growth and provision of products and services to the rural people in India. In July 2009, Reliance BIG TV launched a new interactive feature, iStock, India's first portfolio tracking application through its DTH platform. Subsequently, Etisalat DB Telecom (previously Swan Telecom) and RCOM entered into a long term passive infrastructure sharing agreement which will accelerate Etisalat DB Telecom's roll-out of telecom services in India. As per the agreement, Etisalat DB and its subsidiary will outsource their telecom infrastructure requirements for the 15 telecom circles, encompassing end-to-end tower and transmission infrastructure, to Reliance Infratel and RCOM, respectively. RCOM started a nationwide commercial roll-out of mobile conferencing service through a strategic tie-up with Kodiak Networks, a provider of group communications' solutions, in August 2009. Subsequently, the company and Chinese state owned China Telecom launched a terrestrial cable connecting East Asia with Indian subcontinent. In the following month, RCOM introduced BIGMaps service, which allows search across business, directions, events and movies by organizing local information on a pan-India basis, on its GSM network. In October 2009, Reliance Webstore, the retail venture of Reliance ADA Group, signed a strategic and exclusive distribution agreement with Coolpad Communication, the Indian joint venture of the Hong-Kong listed company, China Wireless Technologies. This agreement marks entry of Reliance Webstore into open market handset retailing business through its Reliance World and Reliance Mobile stores. In the following month, RCOM formed a strategic partnership with atom technologies, the leading m-commerce solutions provider from the Financial Technologies India group. This partnership enables RCOM to offer a secure, inter-operable and the convenient platform to conclude payment transactions using Reliance Mobile. The company introduced Cartoon Network Comics on Mobile, a value added service which enables users to browse through comics of Cartoon Network's globally popular and iconic toon stars on their mobiles, in January 2010. In the following month, RCOM in partnership with iseemedia, a provider of messaging and content handling technology, launched push e-mail service on SMS. In April 2010, RCOM and GetJar, the world's second largest app store, formed a strategic alliance. As part of the alliance, RCOM's subscribers will gain access to GetJar's library of applications via a GetJar apps store through RCOM's VAS platform R-World. In August 2010, the company signed an exclusive strategic partnership with Universal Music to offer musicrelated services and content across RCOM's GSM, CDMA, 3G mobile and wireless broadband platforms. In the same month, Reliance Mobile introduced Braille bill service for visually impaired. Subsequently, the company and Nokia India formed a business alliance to promote greater use of mobile services, giving consumers an opportunity to get richer experiences and do more with their phones.
Reliance Communications Limited: Management Statement

A statement by Anil D. Ambani, Chairman at Reliance Communications is given below. The statement has been taken from the company's 2010 annual report. Reliance Communications has had a year of creditable performance where we crossed the historic 100 million wireless subscribers mark, consolidating our position as the 2nd largest wireless operator in the country. With a customer base of 109 million, Reliance Communications has entered the prestigious league of being one of the only 4 telecom operators in the world to have more than 100 million subscribers in a single country. We have completed this feat in less than 7 years of launching our pan-India mobile services and within only 2 years of launching pan-India GSM services - the fastest ever ramp-up of mobile customers anywhere in the world. We are now closer than ever to achieve our goal of becoming one of the world's leading Telecom service providers across the entire value chain of telecom businesses. Over the past year, we have launched several path-breaking initiatives, leading to new revenue streams that compensate for the expected decline in ARPU as more and more customers, including those less affluent, take up mobile services. We look forward to strengthening our leadership in data services in addition to driving to a leadership position in voice services. Our business strategy has been based on aligning ourselves to the changing dynamics of technology, while providing our subscribers with cost effective and innovative services, accompanied by simplicity and transparency in tariffs. Reliance Communications, through its wholly owned subsidiary company, has won 3G spectrum for 13 key Circles in the auction recently completed by the Department of Telecommunications, Govt. of India. 3G telecom services will provide our customers faster connectivity and offer a host of applications like mobile TV, video-ondemand, video calls and high-speed internet access. Our win of 13 3G circles, the highest number of circles won by any operator in the auction, maximizes our company's 3G coverage on a much more conservative spend. Today, our company is the only operator in India that has both the highest 13 circle coverage in 3G as well as having pan India 3G-like capability in CDMA. Performance review The financial year 2010 has been one of the most challenging years for the telecom sector. Over the past financial year, the entire telecom sector was faced with growing pressure on revenues and margins on account of intensifying competition in the Indian telecom sector. The key financial highlights on a consolidated basis are: Total income of INR22,132 crore ($4,903 million), as against INR22,948 crore ($4,525 million) in the previous financial year. Cash Profit of INR8,524 crore ($1,888 million), against INR9,856 crore ($1,943 million) in the corresponding period last year. Net profit of INR4,655 crore ($1,031 million), against INR6,045 crore ($1,192 million) in the previous financial year. Cash Earnings Per Share (Cash EPS) of INR41.30 ($ 0.91), against INR47.75 ($ 0.94) in the previous year and Basic Earnings Per Share (EPS) of INR22.55 ($ 0.50), against INR29.29 ($0.58) in the previous financial year. Net Worth of INR38,363 crore ($8,499 million), keeping Reliance Communications amongst the top Indian private sector companies. Growth platform

Reliance Communications has established a pan-India, next generation, integrated (wireless and wireline), convergent (voice, data and video) digital network that is capable of supporting best-of-class services spanning the entire communications value chain, covering over 24,000 towns and 600,000 villages. Our customer base exceeds 109 million (including over 2.5 million overseas retail customers and 2.4 million BigTV DTH customers). We rank among the top four telecom companies in the world, by number of customers in a single country. Our corporate clientele includes 2,100 Indian and multinational corporations, and over 800 global, regional and domestic carriers. Our enterprise customers include 850 of the top 1000 enterprises in India. We have the largest portfolio of multi-tenancy towers offering integrated infrastructure solutions. We operate the world's largest submarine cable network with a presence in over 60 countries. We are a one-stop-shop across the entire range of enterprise connectivity solutions. We have captured about 12% of the DTH market in India within a short span of launch - achieved by the fastest ramp-up ever by any DTH operator in the world. Transformational initiatives We are discussing an agreement with GTL Infrastructure Limited on a transformational proposal to restructure the passive infrastructure business carried on through Reliance Infratel Limited, a subsidiary of the company, by de-merging this business, excluding the optic fiber network. This transaction will create the world's largest independent telecom infrastructure company with over 80,000 towers and 1,25,000 tenancies from nearly a dozen telecom operators. Upon completion, the company will derive huge benefits from the transaction by way of reduction of consolidated debt, improvement in leveraging ratios and enhanced financial flexibility. We have also agreed to acquire Digicable, India's No.1 Cable TV Service Provider. The deal will create India's largest and the world's fifth largest entity offering the full-suite of Triple Play services viz. Digital TV, High-Speed Broadband and Voice services. Both the above transactions are expected to be concluded during the current year, subject to requisite approvals as may be necessary. Segments 1) Wireless We are among India's top two operators with over 105 million wireless subscribers across a comprehensive portfolio of services, including mobile, PCO, fixed wireless and data card segments. During the year, we saw our minutes of usage increase from 277 billion to 350 billion, a rise of 26% as compared to last year. We have been at the forefront of innovation in the wireless sector: Effectively broken the clutter of tariffs by introducing the Simply Reliance plan. Spearheaded the wireless broadband revolution with our market-leading high speed data-card offering. Leading the national roll out of 3G services, which will see another wave of growth opportunities. Unique world class infrastructure network spread across the country giving us a strong platform to launch our 3G services in very short time. 2) Global

We are market leaders across different segments, having the largest private sub-sea cable in the world and the largest NLD network in India. To sustain our leadership, we have joined the consortium of $400 million, 8,300 km, 17 Tbps design capacity Singapore - Hong Kong - Japan (SJC) cable system. The SJC cable system is expected to be completed by third quarter of 2011. This will give us the capability and reach to provide voice, internet and data services to our customers in the South East Asian markets of Indonesia, Singapore and the Philippines. Our Next Generation cable "Hawk" in the Mediterranean between Middle East and Europe remains on track for completion by the end of the ongoing financial year. 3) Enterprise Broadband Currently, we operate in almost 50 cities of India with over 1 million buildings connected directly to our network. In all, we serve nearly 1.5 million access lines. Over 850 of the top 1,000 companies in India are our customers. We have augmented our building connectivity programme through the deployment of WiMAX 802.16 IEEE standards technology. We have one of the largest Internet Data Center (IDC) capacities occupying more than 400,000 sq ft in India, across 9 data centers with a market share of more than 60%. 4) Home Our Home business currently comprises Direct to Home (DTH) services targeting one of the largest and fastest growing markets for pay television services in the world. We have commenced the roll-out of India's first High Definition set-top box with Digital Live TV Recording capabilities. Reliance Big TV is rolling out its HD DVR set-top box across top 100 cities in India. Corporate Governance Our Company is a proud member of the Reliance Anil Dhirubhai Ambani Group. We have adopted the Group's Corporate Governance Policies and Code of Conduct. These guidelines prescribe a set of systems, processes and principles that conform to the best global standards and are aimed at promoting the interests of all our stakeholders. Social Commitment We have undertaken several important initiatives and measures in the area of education, green environment and healthcare, signifying our continued and long-standing commitment to social and community welfare. Our Commitment At Reliance Communications, we have always derived inspiration from the vision of our legendary founder, Shri Dhirubhai Ambani, who wanted to bring the power of communication to every Indian by making calling on the phone cheaper than sending a postcard. Seven years ago, we set about realizing that dream by breaking the price barrier that had hitherto limited the reach of India's telecom sector to a privileged few. Today, we are breaking the barriers of remoteness by deploying the latest communications technology to bridge the digital divide, leapfrogging every part of rural India into the national economic mainstream - while remaining true to our founder's commitment about the fundamental affordability of our services. In one word, we are laying the foundation, in less than a decade, for a second wave of fundamental change, India's second telecom revolution...
Reliance Communications Limited: Locations and Subsidiaries

Table 3: Reliance Communications Limited: Locations and Subsidiaries Reliance Globalcom - Taiwan 4/F No 200 Sec 1 Keelung Road Taipei Taiwan 886 2 2722 7222 886 2 2345 1914
Reliance Globalcom - UAE Masaood Tower 7th Floor Al Maktoum Street Dubai United Arab Emirates 971 4 227 1880 971 4 223 8275
Reliance Globalcom - UK Units 1 & 2 Great West Plaza Riverbank Way Brentford Middlesex TW8 9RE United Kingdom 44 208 636 1700 44 208 636 1701
Reliance Globalcom - Egypt Nile City Towers North Tower 23rd Floor Cornish El Nil Cairo Egypt 202 2461 8590 202 2461 8501
Reliance Globalcom - France Tour Ariane 5 place de la Pyramide La Defense 9 92088 Paris La Defense France 33 1 46 96 54 00 33 1 46 96 54 01
Reliance Globalcom - Germany Triforum Haus A1 Frankfurter Strasse 233 63263 Neu-Isenburg Germany 49 6102 785555 49 6102 785556
Reliance Globalcom - Hong Kong Suite 3901-02 39/F Lippo Centre Tower Two 89 Queensway Hong Kong Special Administrative Region of China 852 2848 0077 852 2848 0081
Reliance Globalcom - Italy Torre Tonda P.zza Don Mapelli, 1 20099 Sesto San Giovanni Milano Italy 39 02 2412191 39 02 2409422
Reliance Globalcom - Argentina Edificio Laminar Plaza Ing Butty 240 4 Piso C1001AFB Capital Federal
Reliance Globalcom - Australia Suite 102 Level 1 201 Elizabeth Street Sydney
Buenos Aires Argentina 54 11 4590 2345 54 11 4590 2201
New South Wales 2000 Australia 61 2 8272 5900 61 2 8272 5901
Reliance Globalcom - Brazil Avenida Paulista 2300 - andar Pilotis Cerqueira Cesar Sao Paulo Brazil 55 11 2847 4700 55 11 2847 4550
Reliance Globalcom - China 1208, Tower C1 Oriental Plaza 1 East Chang An Ave Dongcheng District Beijing 100738 China 86 10 8515 1188 86 10 8515 0837
Reliance Globalcom - Japan Sawada Kojimachi Bldg. 5F 1-10 Kojimachi Chiyoda-ku Tokyo 102-0083 Japan 81 3 3511 5760 81 3 3511 5757
Reliance Globalcom - Netherlands Boeing Avenue 1-3 1119 PC Schiphol-Rijk Netherlands 31 20 316 5250 31 20 316 5255
Reliance Globalcom - New York 600 3rd Avenue 7th Floor New York New York 10016 United States 1 212 891 5980 1 212 750 0225
Reliance Globalcom - Singapore No. 4 Shenton Way 07-05/06 SGX Centre 2 Singapore 068807 Singapore 65 6281 1181 65 6533 3343
Reliance Globalcom - South Korea Suite 2303 23/F City Air Tower 159-9, Samsung-Dong, Kangnam-Ku Seoul 135-973 Republic of Korea 82 2 60003400 82 2 60003410
Reliance Globalcom - Switzerland Forrlibuckstrasse 30 8005 Zurich Switzerland 41 44 520 35 02 41 43 366 94 69
SOURCE: DATAMONITOR
DATAMONITOR
Reliance Communications Limited: Key Competitors

Table 4: Reliance Communications Limited: Key Competitors Bharat Sanchar Nigam Ltd. Mahanagar Telephone Nigam Limited (MTNL) Vodafone Group Public Limited Company
SOURCE: DATAMONITOR DATAMONITOR
Bharti Airtel Limited Virgin Mobile Holdings (UK) plc
Reliance Communications Limited: Company Analysis

Reliance Communications Limited: Business Description
Reliance Communications (RCOM) is one of the leading providers of communications services to consumer, enterprise and carrier customers in India. The company provides wireless, wireline and long distance services voice, data, video, direct-to-home (DTH) and internet based communications services. It also owns through its subsidiaries, a global submarine cable network infrastructure and offers managed services, managed Ethernet and application delivery services. RCOM mainly operates in India. The company operates through five business segments: wireless, global, broadband, investment, and others. The wireless segment provides code division multiple access (CDMA) and global system for mobile communications (GSM) based wireless services in India, including mobile and fixed wireless voice, data and value added services for individual consumers and enterprises. It is an integrated telecom service provider, offering total telecom solutions to corporate, small and medium size enterprises (SME) and small-office homeoffice (SoHo) customers. The segment's portfolio of products includes mobile handsets, fixed wireless phones/terminals, high-speed internet data cards and Blackberry services. Its primary brands comprise Reliance Mobile for the mobile portfolio of services, Reliance Hello for the fixed wireless portfolio of services and Reliance Netconnect for wireless data services. The company also offers wireless multi media experience under the brand Reliance Mobile World. The company's wireless segment also offer public calling office (PCO) services over its wireless network through independent retail operators. Additionally, the company provides connectivity for devices such as point of sale terminals, lottery terminals and ATM terminals. At the end of FY2010, the company had a wireless subscriber base of 102.5 million. The global segment offers national long distance (NLD) and international long distance voice (ILD) operations of the company and the wholesale operations of its subsidiaries including Reliance Globalcom and its subsidiaries. The segment is organized into four business segments: data, voice, WiMAX and NLD. It provides wholesale, enterprise and retail product in each business segment. In India, the segment provides long distance business services including wholesale voice, bandwidth and infrastructure services. Globally, it provides carrier's carrier voice, carrier's carrier bandwidth, enterprise data and consumer voice services. The voice business segment's wholesale product offering include ILD carriage and termination services to other carriers and other business units of RCOM. Its retail offering include virtual international calling services to retail customers which allows calls to 200 international destinations including India under the brand Reliance Global Call. The retail services are available to customers in eight countries including the US, Canada, the UK, Australia, New Zealand, Hong Kong and Malaysia. The segment has over 2.5 million customers for Reliance Global Call service. Its WiMAX business segment is focused on acquiring licenses in several emerging markets. The NLD business segment offers NLD carriage and termination to other carriers as well as to other business units of RCOM. It also offers bandwidth and infrastructure services to other operators. Its international data business owns the largest private submarine cable system in the world, directly connecting 40 countries from the East coast of the US, to Europe, the Middle East, India, South and East Asia, through to Japan. The company owns and operates the world's largest private undersea cable system spanning 65,000 kilometers integrated with domestic optic fiber running over 190,000 kilometers. It is further expanding global network with implementation of the FLAG Next Generation Network cable system. The broadband segment includes broadband operations of the company, Reliance Communications Infrastructure and Reliance WiMax. The segment offers a portfolio of enterprise voice, data, video, internet and IT infrastructure services. The segment provides services across various customer groups including residential,

SMEs and large enterprises. Its services include national and international private leased circuits, broadband internet access, audio and video conferencing, MPLS-VPN, remote access VPN, Centrex, toll-free services voice services for offices, voice VPN for enterprises and managed internet data centre (IDC) services. It offers value added products and services to large, medium and small enterprises for their communications, networking, and IT infrastructure needs across the country. The company offers enterprise broadband services in 50 cities in India with over 1 million buildings connected directly to network serving close to 1.5 million access lines. It augmented building connectivity program through deployment of WiMAX 802.16d technology. The company's enterprise customer base includes over 850 of the top 1,000 Indian enterprises. Reliance Communications operates one of the largest internet data center (IDC) capacities occupying more than 400,000 square feet in India, across nine data centers with a market share of more than 60%. The investment segment includes investment activities of the company's subsidiaries, including Reliance Telecom, Reliance Infratel, Reliance Webstore, Reliance Globalcom, Gateway Net Trading, Reliance Infocomm Infrastructure and Reliance WiMax. The others segment includes the customer care activities of Reliance Webstore, facility usage activities of Reliance Infocomm Infrastructure and DTH activities of Reliance Communications Infrastructure and Reliance Big TV. The company launched nationwide satellite TV services through wholly owned subsidiary, Reliance Big, in 2008. These services are available on the DTH format to consumers in India, under the Reliance Big TV brand. The company's DTH operations uses MPEG 4 technology to deliver services over 230 broadcast channels, six interactive services and a range of 'subscription video-on-demand / pay per view' offerings to its subscribers. The company also commenced the roll-out of India's first high definition (HD) set-top box with Digital Live TV Recording capabilities. Reliance Big TV is rolling out its HD DVR set-top box across top 100 cities in India. As of FY2010, Reliance Big TV had 2.4 million subscribers. Reliance World (formerly Reliance WebWorld) is a chain of retail outlets offering products and services of the Reliance Anil Dhirubhai Ambani Group in India. The Reliance World outlets are connected to RCOM's countrywide optic fiber network. The company operates 241 Reliance World outlets across 105 cities in India.
Reliance Communications Limited: SWOT Analysis

Reliance Communications Limited: SWOT Overview
Reliance Communications (RCOM or "the company") is an integrated communications service provider in India. The company is part of the Reliance Anil Dhirubhai Ambani Group. RCOM serves consumer, enterprise and carrier customers. It operates a full spectrum of wireless, wireline, and long distance, voice, data, video and internet communication services. It also offers direct-to-home (DTH) TV services under the brand, Big TV. The company also participates in submarine cable network infrastructure, and owns, operates and develops telecom infrastructure, such as wireless communications sites and towers. Integrated operations provide a competitive advantage to the company by allowing it to maintain control on quality of services delivery and expand its offerings. However, increasing competition may affect the company's market share in coming years.
Strengths Well integrated operations Strong brand recognition Significant operations of Reliance Globalcom and Reliance Communications Infrastructure
Weaknesses Decreasing ARPU Concentrated geographic operations Significant debt
Opportunities Low penetration rates Growth of pay-TV market Launch of 3G services
Threats Increasing competition Regulations
Reliance Communications Limited: Strengths

Well integrated operations RCOM is an integrated telecom operator in India. The company's operations encompass wireless, wireline and long distance retail operations, data center and IT related operations, telecom infrastructure business, and retail network. It has established a pan-India, next generation, integrated (wireless and wireline), convergent (voice, data and video) digital network that is capable of supporting services spanning the entire communications value chain, covering over 24,000 towns and 600,000 villages and all major railway routes and highways which covers 90% of the country's population. RCOM also owns and operates the world's largest next generation IP enabled connectivity infrastructure, comprising over 2,77,000 kilometers of fiber optic cable systems in India, the US, Europe, Middle East and the Asia Pacific region. The company's national networks are integrated with its international networks. It has relationship with over 800 global, regional and domestic carriers capable of offering services in 230 countries. RCOM's managed network services are available in over 40,000 locations across 163 countries. It also owns 22,000 kilometers of metro fiber network in the US in 14 metros allowing it to offer connectivity to these key business markets. RCOM's consumer and SME offerings are supported by one of the extensive distribution networks in India with throughput capacity for over 24 million handsets per annum. The company's nearly 2,000 exclusive Reliance World and Reliance Express stores with a presence in over 700 Indian cities form the backbone of its retail presence. Furthermore, through preferred retailers, it has a branded retail presence in over

1,300 towns, as well as 600,000 retailers providing the company's offerings. The company's infrastructure businesses are mainly handled by its subsidiaries, Reliance Globalcom and Reliance Infratel. Reliance Globalcom encompasses enterprise services, capacity sales, managed services, and retail products and services comprising of global voice, internet solutions and value added services. Reliance Infratel owns, operates, and develops telecom infrastructure, primarily consisting of wireless communication sites and towers. It currently owns all of the towers used by Reliance Communications' CDMA and GSM wireless networks and is developing additional towers to meet the needs of Reliance Communications and other customers. Its customers include the top 5 telecom operators in India along with five new entrants in the telecom market. RCOM's retail and distribution reach and infrastructure base has allowed it to expand into related fields such as DTH and GSM services. The company's established infrastructure made it the only player in India offering both GSM and CDMA services on a nationwide basis, as well as significantly reduced the capital required to establish infrastructure for launch. As of FY2010, the company has a customer base of 109 million, including over 2.5 million individual overseas retail customers. It is one of the top two telecommunication companies in India and ranks among the top four telecom companies in the world by number of customers in a single country. RCOM's integrated operations provide synergies from presence in different areas of the telecom market to launch several new services to diversify its portfolio and to have a control on quality of service delivery. Integrated operations provide a competitive advantage to the company by allowing it to maintain control on quality of services delivery and expand its offerings. Strong brand recognition The Reliance brand has a strong brand value in India and international markets. Despite the amicable separation of Reliance into two separate groups: Reliance Anil Dhirubhai Ambani Group (Reliance ADAG), headed by Anil Dhirubhai Ambani; and Reliance Industries, headed by Mukesh D. Ambani, the Reliance brand continues to have significant recognition. RCOM is part of the Reliance ADAG, which has a presence in different industries ranging from communications (RCOM) and financial services (Reliance Capital), to generation, transmission and distribution of power (Reliance Energy), infrastructure and entertainment. Reliance ADAG is among India's top three private sector business houses, with net worth in excess of INR640,000 million ($13,600 million), cash flows of INR130,000 million ($2,800 million), and net profit of INR84,000 million ($1,800 million). Furthermore, the group, through its products and services, serves one in every 10 Indians every day, and has a presence in over 24,000 towns and 600,000 villages in India, and five continents across the world. Further, Reliance Mobile has been rated as "India's Most Trusted Service Brand" amongst all service brand categories in the consumer survey conducted by "The Economic Times". Strong brand value enhances the company's ability to penetrate new markets and enhance customer loyalty. Significant operations of Reliance Globalcom and Reliance Communications Infrastructure RCOM's principal operating companies, including Reliance Globalcom (RGL) and Reliance Communications Infrastructure (RCIL) have significant operations. RGL manages the global telecom operations of RCOM. The company's global business serves over 2,100 enterprises, 200 carriers and 2.5 million retail customers over 160 countries across five continents. RGL encompasses enterprise services, capacity sales, managed services and a range of retail products and services comprising of global voice, internet solutions and value added services. Its major assets are the FLAG Atlantic, FLAG North Asia Loop, FLAG Europe Asia and FALCON submarine cable systems. Further, during FY2010, in the carrier data segment, RGL signed contracts of over INR5,000 million ($105.5 million) with the company's existing customer base. It also joined the $400 million, 8,300 km, 17 Tbps design capacity Singapore - Hong Kong - Japan (SJC) cable system consortium. The SJC cable system is expected to be completed by Q3 2011 and will give RCOM the capability and reach to provide voice, internet and data services to its customers

in the South East Asian markets of Indonesia, Singapore and the Philippines. RCIL, a wholly owned subsidiary of RCOM, provides wireless multimedia (through Reliance Mobile World) and internet access (through Reliance Netconnect) services to customers of RCOM. Its subsidiary, Reliance Infratel owns, operates, and develops telecom infrastructure, primarily consisting of wireless communication sites and towers. In addition, during FY2010, RITL signed contracts with all major new and existing operators for providing passive Infrastructure. It also signed a large bulk IRU lease agreement with Aircel for providing ducts on pan India basis. Significant operations of RGL and RCIL will enhance the company's top line growth in the coming years.
Reliance Communications Limited: Weaknesses

Decreasing ARPU The company has been experiencing decline in its average revenue per user (ARPU) in India during recent years. Despite having one of the world's lowest tariffs for local and long distance calls, the company continued to decrease its charges to cope up with the competition. As a result, RCOM's ARPU decreased from INR244 ($5.2) at the end of 2009 to INR165 ($3.5) in FY2010 and INR122 ($2.6) at the end of quarter ended September 2010. Although, the company managed to register revenues growth due to new customer additions, its overall revenue growth rate and margins continued to decline. As a result, the company's future success in India depends on its ability to attract new customers and retain existing customers, lack of which will affect the company's revenues and profitability. Concentrated geographic operations RCOM's operations are concentrated mainly in India. Despite being one of the leading players in the Indian telecom market, the company has not been able to expand its presence into international market. By contrast, the company's major competitors have diversified geographic presence. For instance, Vodafone Group, one of the company's competitors, is a leading telecom company with presence across Americas; Europe, Middle East and Africa; and Asia. Furthermore, Bharti Airtel, another competitor of the company, has a presence in Channel Islands, Sri Lanka, and Bhutan. Further, In June 2010, Bharti Airtel acquired Zain Africa, which includes the operations in Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania, Uganda and Zambia. The company's growth has not been affected by lack of geographic diversification, as its operations in India which provides a base of potential growth in near time. However, its concentrated geographic operations may affect its operating performance in long term. Significant debt RCOM has reported high debt in recent years. It reported total debt of INR244,782.8 million ($5,167.4 million), INR309,036.1 million ($6,523.8 million), and INR202,864.3 million ($4,282.5 million) in FY2010, 2009, and 2008, respectively. As a result of this high debt, the company incurred interest expenses of INR13,422 million ($283.3 million), INR12,118.4 million ($255.8 million), and INR8,492.4 million ($179.3 million) in FY2010, 2009, and 2008, respectively. In addition, the company's total debt to equity ratio was 0.6, 0.7, and 0.8 in FY2010, 2009, and 2008, respectively. Moreover, the company's operating profits have been declining in recent years. The operating profit of the company decreased from INR51,696.1 million ($1,091.3 million) in FY2008 to INR34,380.7 million ($725.8 million) in FY2010. Further, RCOM's interest coverage ratio declined from 6.1 in 2008 to 2.6 in FY2010. In addition, the company's debt service coverage ratio also declined to 0.3 in 2010 from approximately 1 in

2008. Also, the company has to raise additional capital to launch its 3G services. Declining operating profits and interest coverage ratio will make it difficult for the company to raise additional debt. Further, substantial debt limits RCOM's flexibility to plan for, or react to, changes in its business and the industry in which it operates.
Reliance Communications Limited: Opportunities

Low penetration rates Growth of Indian telecom market The Indian telecom market is one of the less penetrated markets in the world. The Indian market has low penetrations rates in the mobile, broadband and related services segments. The market recorded significant growth in recent times to register about 600.7 million telecom customers at the end of 2009. This allowed it to surpass the US to become the second largest market in the world after China. Furthermore, the telecom penetration rate in India was 51.1% at the end of 2009 with a wireless penetration rate of 47.91% and broadband penetration of 0.73%. Low penetration rates signify potential for growth in coming years. The government of India is targeting 1 billion telecom customers by 2015 and 20 million broadband customers by 2010. Further, the total broadband subscribers in India are forecast to reach 85.8 million by 2014, compared to 8.8 million as of March 2010. The growth in telecom market is being driven by increasing urbanization, rising income levels and a large young population. RCOM is one of the leading telecommunications players in India and ranks among the top four telecom companies in the world by number of customers in a single country. In addition, during FY2010, the company rolled out CDMA wireless broadband service, Reliance Netconnect Broadband+, with downlink speed of up to 3.1 Mbps. The initial rollout of the Netconnect Broadband+ service consisted of 38 cities including the metros. This was later expanded to 62 cities towards the end of the FY2010. The company plans to extend this service throughout India. RCOM retails Netconnect Broadband+ in 12,000 IT retail outlets across India as well as 2,300 exclusive Reliance Communication retail stores and nearly 240 Reliance World outlets. In enterprise broadband segment, RCOM operated in almost 50 cities of India with over 1 million buildings connected directly to its network as of FY2010. The company served nearly 1.5 million access lines. Low penetration rates in Indian market will allow the company to enhance its revenue in the coming years. Growth of pay-TV market The pay-TV market in India is expected to grow in the coming years. According to the industry sources, India is the third largest Asian market in terms of pay-TV penetration, behind Korea and Taiwan. The payTV penetration in India is expected to increase from 78% in 2009 to 90% by 2014. It is also forecast that the number of pay-TV subscribers in India will grow from 104 million in 2009 to 148 million by 2014. Further, India is expected to become the largest DTH market in the world in terms of subscribers by 2012, overtaking the US. RCOM offers satellite TV services in India through its wholly owned subsidiary, Reliance Big. The company's DTH operations uses MPEG 4 technology to deliver services over 200 broadcast channels and over 30 exclusive movie channels to its subscribers. Reliance Big TV is available at more than 100,000 outlets across 6,500 towns in the country. As of FY2010, Reliance Big TV currently had 2.4 million subscribers, representing about 12% of the DTH market in India. During FY2010, the company commenced the roll-out of India's first high definition (HD) set-top box with Digital Live TV Recording capabilities. Reliance Big TV is rolling out its HD DVR set-top box across top 100 cities in India. Growth of pay-TV market will allow the company to increase its revenues in the coming years.

Launch of 3G services RCOM is planning to launch 3G services in India by the end of 2010. The company, through its wholly owned subsidiary company, has won 3G spectrum for 13 key circles in the auction recently completed by the Department of Telecommunications (DoT) of India. The company has successful bid for 13 of the 3G circles in India, the highest number of circles won by any operator in the auction, maximizes its 3G coverage on a much more conservative spend. RCOM is the only operator in India that has both the highest 13 circle coverage in 3G as well as having pan India 3G-like capability in CDMA. The company through 3G services will be able to provide its customers faster connectivity and offer a host of applications, including mobile TV, video-on-demand, video calls and high-speed internet access. According to the industry sources, there will be 145 million 3G connections in India by the end of 2014. Further, the 3G broadband subscriber base is expected to reach 105 million by 2015, with total revenues forecast to reach INR260,000 million ($5,488.6 million) by 2015. Launch of 3G services will enable the company to enhance its subscribers and revenues in the coming years.
Reliance Communications Limited: Threats

Increasing competition The competition in the Indian telecom market has been increasing in recent time owing to expansion of existing players and entry of new players. In recent times, the market has experienced launch of services in new circles by existing players and migration to GSM technology by CDMA players. Furthermore, mobile players are also entering the enterprise business by launching their national and international long distance operations. For instance, international players such as Vodafone and NTT DOCOMO made a direct entry into the market. Vodafone acquired a controlling stake in Hutchison Essar, which operated as Hutch brand, and rebranded Hutch to Vodafone. NTT DOCOMO entered the market as TATA DOCOMO through an alliance with Tata Teleservices, a CDMA service provider operation under the brand name Tata Indicom. Additionally, Tata Teleservices also launched Virgin Mobile services targeting young generation through a brand franchise agreement with Virgin Group. Some of the other competitors of the company include Aircel, Idea Cellular, and Tata Teleservices Maharashtra. Additionally, in 2009, Telecom Regulatory Authority of India (TRAI) recommended the entry of mobile virtual network operator (MVNO) in India, further increasing the competition. Increasing competition may affect the company's market share in coming years. Regulations The telecom regulations in India have been increasing in recent times. The regulatory for communication in India are handled by the DoT and Telecom Regulatory Authority of India (TRAI). In recent times, there have been significant modifications and additions to regulations. For instance, TRAI issued revised quality of service (QoS) regulation for cellular mobile telephone service (CMTS) and wire line services in March 2009. The existing benchmarks have been tightened and some new parameters, including base transceiver station (BTS) accumulated downtime, worst affected BTSs due to downtime, worst affected cells having more than 3% TCH drop, have been added. The benchmark for call drop ratio has been reduced to 2% from 3% earlier. The revised regulation came into existence from July 2009. In December 2009, DoT issued a directive to all the unified access service as well as NLD, ILD and ISP licensees in December 2009. As per the order, prior approval has to be taken from the licensor before procurement of any telecom equipment/software. Further, DoT implemented number portability in Haryana in November 2010 and plans to implement the same across India by January 2011. The regulatory changes may affect the company's revenues, and requires it to make changes in

organization to adapt to new regulations.
Reliance Communications Limited: Financial Analysis

Reliance Communications Limited: Financial Overview
Reliance Communications The company recorded revenues of INR206,850.5 million ($4,366.6 million) during the financial year ended March 2010 (FY2010), a decrease of 0.3% over 2009. In FY2010, India, the company's largest geographic market, accounted for 78.4% of the total revenues. RCOM generates revenues through five business divisions: wireless (64.7% of the total division revenues in FY2010), global (21.6%), broadband (10.6%), investment (0.9%) and others (2.1%). Revenues by Division In FY2010, the wireless division recorded revenues of INR143,121.1 million ($3,021.3 million), a decrease of 10.4% over 2009. The global division recorded revenues of INR47,897.3 million ($1,011.1 million) in FY2010, an increase of 14.6% over 2009. The broadband division recorded revenues of INR23,476.4 million ($495.6 million) in FY2010, an increase of 18.5% over 2009. The investment division recorded revenues of INR2,094.9 million ($44.2 million) in FY2010, a decrease of 36.1% over 2009. The others division recorded revenues of INR4,733.1 million ($99.9 million) in FY2010, a decrease of 0.9% over 2009. Note: *As reported by the company. **Divisional segments percentage rounded off. Revenues by Geography India, RCOM's largest geographical market, accounted for 78.4% of the total revenues in FY2010. Revenues from India reached INR173,590.4 million ($3,664.5 million) in FY2010, a decrease of 4.5% over 2009. Outside India accounted for 21.6% of the total revenues in FY2010. Revenues from outside India reached INR47,732.4 million ($1,007.6 million) in FY2010, an increase of 0.2% over 2009. Note: *As reported by the company.
Reliance Communications Limited: Five Year Company Financials
Reliance Communications Limited: Key Income Statement Data
Figure 1: Reliance Communications Limited: Revenue to Net Income (2007-2010)
Figure 2: Reliance Communications Limited: Revenue/Employee to Net Income/Employee (20072010)
Reliance Communications Limited: Key Balance Sheet Data
Figure 3: Reliance Communications Limited: Current Assets to Current Liabilities (2007-2010)
Figure 4: Reliance Communications Limited: Assets, Liabilities to Total Equity (2007-2010)
Reliance Communications Limited: Key Cash Flow Data
Figure 5: Reliance Communications Limited: Free Cash Flow to Cash from Operating Activities (20072010)
Figure 6: Reliance Communications Limited: Net Change in Cash (2007-2010)
Reliance Communications Limited: Key Market Data
Figure 7: Reliance Communications Limited: Market Capitalization to Year-end Share Price (2007-2010)
Figure 8: Reliance Communications Limited: Enterprise Value (2007-2010)
Reliance Communications Limited: Corporate Financial Deals Activity

Reliance Communications Limited: Financial Deals Overview
Figure 9: Reliance Communications Limited: Deal Activity by Deal Type - Volume (TTM) Figure 10: Reliance Communications Limited: M&A Activity by Geography (TTM)
SOURCE: DATAMONITOR
DATAMONITOR
SOURCE: DATAMONITOR
DATAMONITOR
Table 5: Reliance Communications Limited: Deal Activity by Deal Type - Volume (TTM) Deal Type Acquisition Partnership Corporate Venturing Capital Raising Divestments Private Equity
SOURCE: DATAMONITOR
Table 6: Reliance Communications Limited: M&A Activity by Geography (TTM) Geography Asia-Pacific Europe Middle East and Africa North America South and Central America
SOURCE: DATAMONITOR
Deal Volume 1 1 -
Deal Volume 1 DATAMONITOR
DATAMONITOR
Figure 11: Reliance Communications Limited: Deal Activity by Deal Type - Volume (2007 - YTD*2011)
Figure 12: Reliance Communications Limited: M&A Average Deal Size - Value (US$m)
SOURCE: DATAMONITOR
DATAMONITOR
SOURCE: DATAMONITOR
DATAMONITOR
Table 7: Reliance Communications Limited: Deal Activity by Deal Type - Volume (2007 - YTD*2011) Deal Type ACQ CR CV DIV Pship PE Total 2007 1 2 3 2008 3 3 1 7 2009 1 1 2010 1 2 1 4 2011 -
Table 8: Reliance Communications Limited: M&A Average Deal Size - Value (US$m) Year 2007 Deal Volume 1 3 1 Average Deal Size (US$m) 300 25.3 DATAMONITOR
2008 2009 2010 2011 SOURCE: DATAMONITOR
SOURCE: DATAMONITOR
DATAMONITOR
*ACQ = Acquisition; CR = Capital Raising; CV = Corporate Venturing; DIV = Divestment; Pship = Partnership; PE =Private Equity & Ownership
Reliance Communications Limited: Targets and Partners

Table 9: Reliance Communications Limited: Targets and Partners Reliance Communications LimitedTarget/Partner (Country) Nokia India Pvt., Ltd. (India) Digicable Network (India) Pvt., Ltd. (India) Reliance BIG TV, Ltd. (India) , UTV Indiagames, Ltd. (India) LG Electronics, Inc. (Republic of Korea) , Reliance BIG TV, Ltd. (India) MTN Group Limited (South Africa) Vanco plc (United Kingdom) Alcatel Lucent (France) eWave World, Ltd. (United Kingdom) Electroteks Network Services (Pte) Limited (Sri Lanka) Anupam Global Soft (U) Ltd. (Uganda) Yipes Holdings, Inc. (United States) Telkom Kenya Limited (Kenya)
SOURCE:DATAMONITOR
Deal Headline
Deal Type
Deal Date
Deal Value (US$m)
Reliance Communications to form business alliance with Nokia India Reliance Communications to acquire Digicable
Partnership
Aug 20, 2010 Jul 01, 2010
Acquisition
Reliance Big TV partners with Indiagames
Partnership
Jan 14, 2010
Reliance BIG TV partners with LG Electronics for DTH services
Partnership
Oct 30, 2008
Reliance Communications and MTN Group mutually end talks for business combination Reliance Globalcom to acquire Vanco Reliance Communications forms joint venture with Alcatel-Lucent Reliance Globalcom acquires eWave World
Acquisition
Jul 18, 2008 May 26, 2008 May 12, 2008 Apr 24, 2008 Apr 07, 2008 Feb 21, 2008 Dec 16, 2007 Nov 16, 2007
Acquisition
76
Partnership
Acquisition
Reliance Communications forms joint venture with Electroteks Reliance Communications acquires Anupam Global Soft (U) Reliance Communications acquires Yipes Holdings Airtel, Reliance and Tata lose bid to acquire 51% stake in Telkom Kenya
Partnership
Acquisition
Acquisition
300
Acquisition
DATAMONITOR
Reliance Communications Limited: Top Deals 2007 -YTD*2011

Table 10: Reliance Communications Limited: Top Deals 2007 -YTD*2011 Target/Partner (Country) Reliance Infratel Limited - Tower Assets (India) Reliance Infratel Limited (India) Vanco plc (United Kingdom) Reliance Communications Limited (India) Yipes Holdings, Inc. (United States) Reliance Infratel Limited (India) Deal Value (US$m)
Deal Headline GTL Infrastructure withdraws acquisition of tower assets from Reliance Infratel Securities and Exchange Board of India approves Reliance Infratel IPO Reliance Globalcom to acquire Vanco Life Insurance Corporation increases stake from 4.99% to 5.01% in Reliance Communications Reliance Communications acquires Yipes Holdings Reliance Communications may sell further stake in Reliance Telecom Infrastructure (RTIL) Reliance Communications sells 5% stake in Reliance Telecom Infrastructure
Deal Date
Deal Status
Deal Type
31 Aug 2010
Terminated
Acquisition
11,000
24 Sep 2009
Announced
IPO
1,023
26 May 2008
Announced
Acquisition
76
13 Mar 2008
Completed
Acquisition
16 Dec 2007
Completed
Acquisition
300
08 Aug 2007
Announced
Acquisition
1,736
Reliance Infratel Limited (India)
08 Aug 2007
Completed
Private Equity
338
SOURCE:DATAMONITOR
DATAMONITOR
Reliance Communications Limited: Advisors

Reliance Communications Limited: Top Legal Advisors
Table 11: Reliance Communications Limited: Legal Advisor Ranking by Value (US$m) Company Name Amarchand & Mangaldas & Suresh A. Shroff & Co.
SOURCE:DATAMONITOR
Deal Volume 2
Deal Value (US$m) 1,023

DATAMONITOR
Reliance Communications Limited: Top Financial Advisors
Table 12: Reliance Communications Limited: Financial Advisor Ranking by Value (US$m) Company Name JP Morgan Chase & Co Deutsche Equities India Private Limited Enam Securities Private Limited HSBC Securities and Capital Markets (India) Private Limited ICICI Securities Limited J.P. Morgan India Private Limited JM Financial Consultants Private Limited (formerly JM Morgan Stanley Private, Ltd.) Macquarie Capital Advisers (India) Private Limited UBS Securities India Private Limited Macquarie India Advisory Services Private Limited SBI Capital Markets Limited Kotak Mahindra Capital Company Limited Lehman Brothers Securities Private Limited Deal Volume 1 2 2 2 2 2 Deal Value (US$m) 338 128 128 128 128 128
128
1 2 1 1 1
128 128 -
ABN AMRO Securities (India) Private, Ltd.

SOURCE:DATAMONITOR
DATAMONITOR
Reliance Communications Limited: Mergers and Acquisitions

Figure 13: Reliance Communications Limited: M&A Volume and Value Trend (2007 - YTD*2011) Figure 14: Reliance Communications Limited: M&A Activity by Geography (2007 - YTD*2011)
SOURCE: DATAMONITOR
DATAMONITOR
SOURCE: DATAMONITOR
DATAMONITOR
Table 13: Reliance Communications Limited: M&A Volume and Value Trend (2007 - YTD*2011) Year 2007 2008 2009 2010 2011
SOURCE: DATAMONITOR
Table 14: Reliance Communications Limited: M&A Activity by Geography (2007 - YTD*2011) Geography Asia-Pacific Europe Middle East and Africa North America South and Central America
SOURCE: DATAMONITOR
Deal Volume 1 3 1 -
Deal Value (US$m) 300 76 DATAMONITOR
Deal Volume 1 2 1 1 DATAMONITOR
Reliance Communications Limited: Partnership

Figure 15: Reliance Communications Limited: Partnership Volume and Value Trend (2007 YTD*2011) Figure 16: Reliance Communications Limited: Partnership Trend by Deal Type (2007 - YTD*2011)
SOURCE: DATAMONITOR
DATAMONITOR
SOURCE: DATAMONITOR
DATAMONITOR
Table 15: Reliance Communications Limited: Partnership Volume and Value Trend (2007 YTD*2011) Year 2007 2008 2009 2010 2011
SOURCE: DATAMONITOR
Table 16: Reliance Communications Limited: Partnership Trend by Deal Type (2007 - YTD*2011) Deal Type Commercialization Joint Venture
SOURCE: DATAMONITOR
Deal Volume 3 2 -
Deal Value (US$m) DATAMONITOR
Deal Volume 3 2
DATAMONITOR
Reliance Communications Limited: Divestments

Figure 17: Reliance Communications Limited: Divestments Volume and Value Trend (2007 YTD*2011) Figure 18: Reliance Communications Limited: Divestments by Geography (2007 - YTD*2011)
SOURCE: DATAMONITOR
DATAMONITOR
SOURCE: DATAMONITOR
DATAMONITOR
Table 17: Reliance Communications Limited: Divestments Volume and Value Trend (2007 YTD*2011) Year 2007 2008 2009 2010 2011
SOURCE: DATAMONITOR
Table 18: Reliance Communications Limited: Divestments by Geography (2007 - YTD*2011) Geography Asia-Pacific Europe Middle East and Africa North America South and Central America
SOURCE: DATAMONITOR
Deal Volume 2 -
Deal Value (US$m) 2,074 DATAMONITOR
Deal Volume 2 DATAMONITOR
Reliance Communications Limited: Private Equity and Ownership

Figure 19: Reliance Communications Limited: Private Equity and Ownership Volume and Value Trend (2007 - YTD*2011) Figure 20: Reliance Communications Limited: Private Equity and Ownership Volume by Deal Type (2007 YTD*2011)
SOURCE: DATAMONITOR
DATAMONITOR
SOURCE: DATAMONITOR
DATAMONITOR
Table 19: Reliance Communications Limited: Private Equity and Ownership Volume and Value Trend (2007 YTD*2011) Year 2007 2008 2009 2010 2011
SOURCE: DATAMONITOR
Table 20: Reliance Communications Limited: Private Equity and Ownership Volume by Deal Type (2007 YTD*2011) Deal Type Acquisition Private Equity
SOURCE: DATAMONITOR
Deal Volume 1 1 -
Deal Value (US$m) 4 DATAMONITOR
Deal Volume 1 1
DATAMONITOR
Reliance Communications Limited: Recent Developments

Reliance Communications Limited: News and Events Summary
Table 21: Reliance Communications Limited: News and Events Summary Date HeadLine Reliance selects Ericsson's eStore platform Feb 22, 2011 Reliance Communications has selected Ericsson's eStore platform for its new application store, Reliance App World. Reliance Globalcom deploys Ciena for 40G optical networking solution Jan 18, 2011 Ciena Corporation has announced that Reliance Globalcom, a provider of managed network services, has deployed Ciena for 40G optical networking solution on a cable route that connects the UK, Spain, Italy and Egypt. Reliance Globalcom signs five-year contract with Attijariwafa bank Reliance Globalcom, a provider of managed network and application delivery services, has signed a five-year contract with Attijariwafa bank group for the implementation and management of its WAN in Europe, Middle East, and the inter-connection with the corporate headquarters in Casablanca. Reliance Communications and Verizon Wireless sign distribution agreement Mar 26, 2010 Reliance Communications, a US-based distributor of wireless products, has entered into an agreement to distribute a full line of wireless devices to authorized Verizon Wireless agents. Reliance Globalcom launches Clearview's Texas Fiber Web Reliance Globalcom, a division of India-based Reliance Communications and a provider of managed network and communication services, has announced the launch of Clearview International's Texas Fiber Web, a fiber-connected network of Clearview's information technology gateways. IT opportunity in Rcom's plan to raise $1.3 billion for expansion Dec 24, 2009 Reliance Communications, or RCom, has announced plans to invest more than INR63 billion ($1.3 billion) to expand its wireless and enterprise business under a plan called Edge 2010. Reliance Communications Q1 net profit up Hardware;Communic ations Sourcing;Supply contracts Sourcing Sourcing Category
Jun 15, 2010
Supply contracts
Commercialization and distribution contracts (incl. franchises)
Jan 20, 2010
Aug 3, 2009
Financial
Performance Reliance Communications has reported a net profit of INR16.37 billion, for the first quarter ended June 30, 2009, up 8.3% compared to INR15.12 billion for the same quarter ended June 30, 2008.
Reliance Communications Limited: Contracts

Table 22: Reliance Communications Limited: Contracts Date Headline Reliance selects Ericsson's eStore platform Feb 22, 2011 Reliance Communications has selected Ericsson's eStore platform for its new application store, Reliance App World. Reliance Globalcom deploys Ciena for 40G optical networking solution Jan 18, 2011 Ciena Corporation has announced that Reliance Globalcom, a provider of managed network services, has deployed Ciena for 40G optical networking solution on a cable route that connects the UK, Spain, Italy and Egypt. Reliance Globalcom signs five-year contract with Attijariwafa bank Reliance Globalcom, a provider of managed network and application delivery services, has signed a five-year contract with Attijariwafa bank group for the implementation and management of its WAN in Europe, Middle East, and the inter-connection with the corporate headquarters in Casablanca. Reliance Communications and Verizon Wireless sign distribution agreement Mar 26, 2010 Reliance Communications, a US-based distributor of wireless products, has entered into an agreement to distribute a full line of wireless devices to authorized Verizon Wireless agents. Reliance Globalcom launches Clearview's Texas Fiber Web Reliance Globalcom, a division of India-based Reliance Communications and a provider of managed network and communication services, has announced the launch of Clearview International's Texas Fiber Web, a fiber-connected network of Clearview's information technology gateways. Reliance Globalcom launches Clearview's Texas Fiber Web Jan 20, 2010 Reliance Globalcom, a division of India-based Reliance
Category
Sourcing
Sourcing
Jun 15, 2010
Supply contracts
Commercialization and distribution contracts (incl. franchises)
Jan 20, 2010
Sourcing
Supply contracts
Communications and a provider of managed network and communication services, has announced the launch of Clearview International's Texas Fiber Web, a fiber-connected network of Clearview's information technology gateways.
Reliance Communications Limited: Financial Performance

Table 23: Reliance Communications Limited: Financial Performance Date Headline Reliance Communications Q1 net profit up Aug 3, 2009 Reliance Communications has reported a net profit of INR16.37 billion, for the first quarter ended June 30, 2009, up 8.3% compared to INR15.12 billion for the same quarter ended June 30, 2008. Financial Performance Category
SOURCE: DATAMONITOR
DATAMONITOR
Reliance Communications Limited: IT Spending Announcements

Table 24: Reliance Communications Limited: IT Spending Announcements Date Headline IT opportunity in Rcom's plan to raise $1.3 billion for expansion Dec 24, 2009 Reliance Communications, or RCom, has announced plans to invest more than INR63 billion ($1.3 billion) to expand its wireless and enterprise business under a plan called Edge 2010. IT opportunity in Rcom's plan to raise $1.3 billion for expansion Dec 24, 2009 Reliance Communications, or RCom, has announced plans to invest more than INR63 billion ($1.3 billion) to expand its wireless and enterprise business under a plan called Edge 2010. Hardware Communications Category
SOURCE: DATAMONITOR
DATAMONITOR
*YTD The period beginning January 1st of the current year up until today's date.
Appendix
Appendix
Contact Us
We hope that the data and analysis in this brief will help you make informed and imaginative business decisions. If you have further requirements feedback please contact us at: cpqueries@datamonitor.com For further information on Datamonitor and our range of business information services please visit www.datamonitor.com
Methodology
Datamonitor company reports are prepared under an established and tested methodology which ensures proper checks and controls to capture and validate the quality and accuracy of data. The information is primarily sourced through: Company Annual Reports Company Analyst Relations Company websites SEC filings (10-K, 20-F, 10-Q etc) Media releases Investors presentations Datamonitor proprietary databases
Appendix
Definitions
Parameters Income Statement Total Revenues Total revenues generated by the company from its business activities such as sale of goods, rendering of services etc during the financial year. COGS include cost of material, labor expenses, and all other direct expenses. Where the company generates revenue by way of sale of goods and rendering services then COGS includes cost of goods sold plus cost of services. Gross Profit is the difference between revenue and COGS. It refers to the profit made by the company before deducting SG&A expense and other operating expenses. Operating expenses includes all operating expenses (other than COGS) like Selling, General and Administration, Research & Development and other operating expenses. Operating income refers to the profit made by the company during the financial year from its core activities. Certain adjustments like restructuring expenses, impairment of assets were made to the operating profit reported by the company for comparability purpose. Due to these adjustments operating profit may differ from the figures reported by the company. Net Income is the profit made by the company during the financial year both from its operating as well as non operating activities. Net income is adjusted for minority interests share of profit. Definitions
Cost of Goods and Services
Gross Profit
Operating Expenses
Operating Income
Net Income Balance Sheet
Total Current Assets
All assets of the company which are realizable with in one year from the Balance sheet date. Total Current assets is the sum of accounts receivable, inventory, cash & bank balance and other current assets. Total assets include both current and non-current assets of the company. It includes tangible assets, intangible assets, investments, current assets and any other asset. All liabilities payable by the company within a period of one year from the balance sheet date. It includes accounts payable, short term debt and other current liabilities. Short term debt includes short term debt and current portion of long term debt. Total liabilities include current liabilities and long term liabilities of the company. Long term liabilities include minority interest, long term debt and other long term liabilities. Total Shareholders Equity refers to the total equity attributable to the shareholders of the company. It includes share capital, additional share capital, retained earnings, comprehensive income/loss and treasury stock.
Total Assets
Total Current Liabilities
Total Liabilities
Total Shareholders Equity
Cash Flow Cash from Operating Cash generated from operating activities of the company.
Appendix
Activities
Operating activities are the principal revenue-producing activities of the company. Cash generated from investing activities of the company. Investing activities are the acquisition and disposal of long term assets and other investments. Cash generated from financing activities of the company. Financing activities are activities that result in change in share capital and borrowings of a company. Closing cash balance refers to the closing cash balance as reported by the company in its Cash Flow statement. This is arrived at by adjusting opening cash balance and effect of foreign exchange to the net change in cash during the year.Net change in cash is the sum of cash generated from operating activities, investing activities and financing activities. Free Cash Flows is arrived at by deducting Capital expenditure from Cash generated from operating activities
Cash from Investing Activities Cash from Financing Activities
Closing Cash Balance
Free Cash Flow Key Statistics
Total Common Shares Outstanding
Total Common shares outstanding refer to the shares outstanding as on Balance sheet date. It is calculated by adjusting treasury stock to common stock of the company as on Balance Sheet. Where there are different classes of shares with different par values, equivalent shares are calculated. Year-end Share Price is the closing share price of the company as on the Balance sheet date. Market Capitalization is arrived at by multiplying share price with total shares outstanding Enterprise value is the sum of Market Capitalization, Minority Interest, Preferential stock and Net Debt. Net debt is arrived at by deducting cash reserves from total debt of the company. Number of Employees indicates the total full time employees of the company as on the Balance sheet date as reported by the company.
Year-end Share Price Market Capitalization
Enterprise Value
Number of Employees Key Ratios P/E Ratio
P/E ratio indicates the number of times the EPS is valued in relation to price per share of the company. P/E Ratio is arrived at by dividing Year end closing share price by Earnings per Share. EPS refers to Earnings per share of the company during the financial year. Earnings per share is computed by dividing net income available to equity share holders by total shares outstanding as on balance sheet date. EV/EBITDA is computed by dividing Enterprise Value by EBITDA. EBITDA refers to Earnings before Interest, Tax, Depreciation and Amortization. EBITDA, and is arrived at by adding Depreciation & Amortization to the operating profit of the company (EBIT). EV/Sale is computed by dividing Enterprise Value by Sales.
Earnings per Share (EPS)
EV/EBITDA
EV/Sales Profitability Ratio
Appendix
Gross Margin Operating Margin
Gross margin is gross profit upon sales. Operating margin is operating profit upon sales. Operating margin indicates the margins generated by the company from its core activities. Net Income Margin is net income upon sales. It reflects the overall margins made by the company during a financial year. Higher net income margins as compared to the industry averages, competitors and previous financial years is a good indicator of the companys profitability.
Net Income Margin
Management Efficiency Ratio Return on equity refers to the return generated by the company during a financial year over its average shareholders equity. Average shareholders equity is the average of opening and closing equity. Minority interest doesnt form part of shareholders equity Return on Capital Employed is computed by dividing Operating profit by capital employed by the company. Capital Employed is calculated by deducting total current liabilities from total assets of the company. Return on Assets is arrived at by dividing net income by average total assets of the company. An average total asset is the average of opening assets balance and closing assets balance.
Return on Equity
Return on Capital Employed
Return on Assets Financial Strength Quick Ratio
Quick ratio is calculated by dividing quick assets by current liabilities. Quick assets include all current assets except inventory which is considered less liquid. Interest coverage ratio reflects the number of times companys operating profit covers its interest expense. The higher the interest coverage ratio the better it is to the company. It is calculated by dividing Earnings Before Interest and Tax (EBIT) by interest expense of the company. Debt to Equity ratio is calculated by dividing total debt by shareholders equity
Interest Coverage Ratio
Debt to Equity Ratio Operational Efficiency Asset Turnover Ratio
Assets turnover ratio is calculated by dividing revenues with average assets of the company. Average Assets is the average of total opening assets and closing assets. Receivable turnover ratio is computed by dividing revenues by average accounts receivable. Average accounts receivable are the average of opening and closing accounts receivable. The inventory turnover ratio measures how fast the stock is moving. Revenue generated per employee is arrived at by dividing net income by number of employees Net income per employee is calculated by dividing net income by number of employees
Receivable Turnover Ratio
Inventory Turnover Ratio Revenue per Employee Net income per Employee Other
Appendix
Capex to Revenues
Capex to Revenues is calculated by dividing Capital expenditure by revenues of a company during a financial year. Capex includes purchase of both tangible and intangible assets by the company during a financial year. Disposal of tangible and intangible assets is not considered. Acquisitions made by the company during the financial year dont form part of Capex.
DATAMONITOR
Capex
SOURCE: DATAMONITOR
Appendix
About Datamonitor
The Datamonitor Group is an independent, premium business information and market analysis company that assists clients with operational and strategic decision-making. As a world-leading provider of premium global business information, Datamonitor delivers independent data, analysis and opinion across the Automotive, Consumer Packaged Goods, Energy & Sustainability, Financial Services, Logistics & Express, Pharmaceutical & Healthcare, Retail, Sourcing, Technology and Telecoms industries. We combine our industry knowledge and experience to assist over 6000 of the worlds leading companies in making better strategic and operational decisions Delivered online via our user-friendly web platforms, our market intelligence products and services ensure that you will achieve your desired commercial goals by giving you the insight you need to best respond to your competitive environment. The Datamonitor Groups research and analysis products are compiled by an extensive global network of researchers, in-house analysts and industry specialists. We collect our own data through an extensive global network using audited methodologies. We monitor more than 75,000 business including company websites, key business publications and stock market sites round-the-clock to provide you with powerful business insights and real time updates. This is further supported and substantiated by our global primary research team engaged in producing original analysis covering key verticals. The Datamonitor Group's consulting team offers a customized research and analysis service, addressing specialized research requirements of clients. Datamonitor is headquartered in London, and has 20 regional offices in Manchester, Hull, Paris, Hyderabad, Dubai, Durban, Sydney, Melbourne, Canberra, Seoul, Tokyo, Hong Kong, Beijing, Taipei, New York, Boston, Chicago, Scranton, Canandaigua and Silicon Valley.

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Strategy, SWOT and Corporate Finance Report

Reliance Communications Limited

Opportunities Low penetration rates Growth of pay-TV market Launch of 3G services

Threats Increasing competition Regulations

A. K. Purwar Anil D. Ambani Deepak Shourie

Director Chairman Director

Non Executive Board Non Executive Board Non Executive Board

Jun 15, 2010

Supply contracts Commercialization and distribution contracts (incl. franchises)

Mar 26, 2010

Reliance Communications Limited: Company Overview

Reliance Communications Limited: Company Overview

Reliance Communications Limited: Key Facts

Reliance Communications Limited: Company Overview

Primary Stock Exchange (Ticker):

Mumbai Stock Exchange (532712 )

Reliance Communications Limited: Company Overview

Reliance Communications Limited: Key Employees

Reliance Communications Limited: Company Overview

Reliance Communications Limited: Key Employee Biographies

Reliance Communications Limited: Company Overview

Reliance Communications Limited: Company Overview

Reliance Communications Limited: Major Products and Services

Reliance Communications Limited: Company Overview

Reliance Communications Limited: Company Overview

Reliance Communications Limited: Company History

Reliance Communications Limited: Company Overview

Reliance Communications Limited: Company Overview

Reliance Communications Limited: Management Statement

Reliance Communications Limited: Company Overview

Reliance Communications Limited: Company Overview

Reliance Communications Limited: Company Overview

Reliance Communications Limited: Locations and Subsidiaries

Reliance Communications Limited: Company Overview

Buenos Aires Argentina 54 11 4590 2345 54 11 4590 2201

New South Wales 2000 Australia 61 2 8272 5900 61 2 8272 5901

Reliance Globalcom - Switzerland Forrlibuckstrasse 30 8005 Zurich Switzerland 41 44 520 35 02 41 43 366 94 69

Reliance Communications Limited: Company Overview

Reliance Communications Limited: Key Competitors

Bharti Airtel Limited Virgin Mobile Holdings (UK) plc

Reliance Communications Limited: Company Analysis

Reliance Communications Limited: Company Analysis

Reliance Communications Limited: Company Analysis

Reliance Communications Limited: Company Analysis

Reliance Communications Limited: SWOT Analysis

Weaknesses Decreasing ARPU Concentrated geographic operations Significant debt

Opportunities Low penetration rates Growth of pay-TV market Launch of 3G services

Threats Increasing competition Regulations

Reliance Communications Limited: Strengths

Reliance Communications Limited: Company Analysis

Reliance Communications Limited: Company Analysis

Reliance Communications Limited: Weaknesses

Reliance Communications Limited: Company Analysis

Reliance Communications Limited: Opportunities

Reliance Communications Limited: Company Analysis

Reliance Communications Limited: Threats

Reliance Communications Limited: Company Analysis

Reliance Communications Limited: Company Analysis

Reliance Communications Limited: Financial Analysis

Reliance Communications Limited: Company Analysis

Reliance Communications Limited: Five Year Company Financials

Reliance Communications Limited: Key Income Statement Data