STAKEHOLDERS EMPOWERMENT SERVICES TATA TELESERVICES (MAHARASHTRA) LTD. www.tatateleservices.com SECTOR: TELECOM SERVICES REPORTING DATE: 25TH JANUARY, 2018

Tata Teleservices (Maharashtra) Ltd. NSE Code - TTML TABLE 1 - MARKET DATA (STANDALONE) (AS ON 24TH JANUARY, 2018) Sector – Telecom Services NSE Market Price (`) 6.90 NSE Market Cap. (₹ Cr.) 1,354.77 Face Value (`) 10.00 Equity (` Cr.) 1,954.93 Business Group - Tata 52 week High/Low (₹) 10.45/3.70 Net worth (₹ Cr.)* -14,517.37 Year of Incorporation - 1995 TTM P/E (TTM) N.A. Traded Volume (Shares) 6,95,711 TTM P/BV N.A. Traded Volume (lacs) 48.00 Registered Office - Source - Capitaline, TTM - Trailing Twelve Months, N.A. - Not Applicable, * As on 30th September, 2017 Voltas Premises, COMPANY BACKGROUND TB Kadam Marg, Chinchpokli, Tata Teleservices (Maharashtra) Limited provides basic and cellular telecommunication services. Mumbai – 400 033, The Company is engaged in wired and wireless telecommunications activities. The Company Maharashtra holds approximately two unified access (basic and cellular) service licenses, one for Mumbai service area and another for Maharashtra and Goa. The Company also provides Company Website: telecommunication services using Code Division Multiple Access (CDMA) technology/Global www.tatateleservices.com System for Mobile Communications (GSM) technology under the its licenses. The Company also holds third generation (3G) spectrum in Maharashtra and Goa circle (excluding Mumbai). The Company is an integrated player across Technologies, including Wireline; Products, including voice, data and other enterprise services, and Customer segments, including retail, large corporate, and small and medium enterprises. The Company provides its range of products and services to wireline and wireless subscribers under the Tata DOCOMO brand.

Revenue and Profit Performance

Quarterly revenue and Profit (₹ CRORE) The revenue of the Company decreased from ₹ 712.81 712.81 2,000 515.32 596.53 crores to ₹ 515.32 crores from quarter ending Sep’16 to quarter ending Sep’17. The Company made a loss of -468.13 -3,000 -1,365.57 ₹8,198.31 crores in quarter ending Sep’17 vis-a-vis making -8,198.31 a loss of ₹468.13 crores in quarter ending Sep’16. -8,000

-13,000

Sep'17 Mar'17 Sep'16 Revenue Profit

Source: Moneycontrol

Performance vis-à-vis Market

2.00 TABLE 2- Returns

1.50 1-m 3-m 6-m 12-m Tata Teleservices -0.72% -9.42% -10.39% 13.11% 1.00 (Maharashtra) Ltd Nifty 5.27% 6.88% 10.70% 27.19%

0.50 Source - Capitaline/NSE Jan 17 Mar 17 May 17 Jul 17 Sep 17 Nov 17 Tata Teleservices (Maharashtra) Ltd NIFTY

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STAKEHOLDERS EMPOWERMENT SERVICES TATA TELESERVICES (MAHARASHTRA) LTD. www.tatateleservices.com SECTOR: TELECOM SERVICES REPORTING DATE: 25TH JANUARY, 2018 TABLE 3 - FINANCIALS % Change (₹ Cr.) Sep’17 Mar’17 Sep’16 Sep ’17 vs Mar’17 Mar’17 vs Sep’16 Net Worth -14,517.37 -5,908.84 -4,032.46 N.A. N.A. Current Assets 997.43 1,256.73 1,278.84 -20.63% -1.73% Non-Current Assets 2,473.83 10,653.59 8,574.61 -76.78% 24.25% Total Assets 3,471.26 11,910.32 9,853.45 -70.86% 20.87% Investments 353.29 679.62 677.91 -48.02% 0.25% Finance Cost 398.61 353.93 388.32 12.62% -8.86% Long Term Liabilities 10,845.51 10,666.63 9,119.17 1.68% 16.97% Current Liabilities 7,143.12 7,152.53 4,766.74 -0.13% 50.05% Turnover 515.32 596.53 700.59 -13.61% -14.85% Profit After Tax -8,198.31 -1,365.57 -468.13 N.A. N.A. EPS (₹) -41.94 -6.99 -2.40 N.A. N.A. Source - Money Control/Stock exchange filing

AUDIT QUALIFICATIONS

Audit Qualifications in last 3 years: The statutory auditors have not raised any audit qualification in their report for the FY 2016- 17, 2015-16, 2014-15.

Response Comment Frequency of Qualifications NA - Have the auditors made any adverse remark in last 3 years? No - Are the material accounts audited by the Principal Auditors? Yes - Do the financial statements include material unaudited financial statements? No -

TABLE 4: BOARD PROFILE (AS PER ANNUAL REPORT - FY 2016-17) Regulatory Norms Company % of Independent Directors on the Board 33% 40% % of Promoter Directors on the Board - 0% Number of Women Directors on the Board At least 1 1 Classification of Chairman of the Board - Non-Executive Director Is the post of Chairman and MD/CEO held by the same person? - Yes Average attendance of Directors in the Board meetings (%) - 85.71%

Composition of Board: As per Regulation 17(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 "Listing Regulations, 2015", the Company should have at least 33% Independent Directors as the Chairman of the Board is a Non-Executive Director. The Company has 40% of Independent Directors and hence, it meets the regulatory requirements.

Board Diversity: The Company has 5 directors out of which 4 are male and 1 is female.

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STAKEHOLDERS EMPOWERMENT SERVICES TATA TELESERVICES (MAHARASHTRA) LTD. www.tatateleservices.com SECTOR: TELECOM SERVICES REPORTING DATE: 25TH JANUARY, 2018 TABLE 5 - FINANCIAL RATIOS % Change Ratios Sep’17 Mar’17 Sep’16 Sep ’17 vs Mar’17 vs Mar’17 Sep’16

Inventory Turnover 628.44 292.42 327.38 114.91% -10.68%

Debtors Turnover 1.91 2.58 2.61 -26.04% -1.13%

Fixed asset Turnover 0.21 0.06 0.08 272.02% -31.47% Ratios Turnover Current Asset Turnover 0.52 0.47 0.55 8.84% -13.36%

Operating Profit Margin 23.89% 11.14% 24.74% 114.49% -54.99% Net Profit Margin -1,590.92% -228.92% -66.82% N.A. N.A. Return on Assets (ROA) N.A. N.A. N.A. N.A. N.A. Return on Equity (ROE) N.A. N.A. N.A. N.A. N.A.

ReturnRatios Return on Capital Employed (ROCE) N.A. N.A. N.A. N.A. N.A.

Current Ratio 0.14 0.18 0.27 -20.53% -34.51%

Quick Ratio 0.14 0.18 0.27 -20.46% -34.50%

Cash Ratio 0.10 0.14 0.21 -28.92% -32.35%

Ratios Liquidity Working Capital Turnover ratio N.A. N.A. N.A. N.A. N.A.

Debt to equity ratio N.A. N.A. N.A. N.A. N.A.

Ratios Interest Coverage Ratio 0.31 0.19 0.45 64.52% -57.96%

Solvency

Market Cap / Sales 2.67 2.24 1.67 19.14% 34.08% Market Cap/ Net Worth N.A. N.A. N.A. N.A. N.A. Market Cap/PAT N.A. N.A. N.A. N.A. N.A.

Market Cap/EBITDA 11.20 20.16 6.77 -44.46% 197.92% TradingRatios Source - Money Control/Stock exchange filing

TABLE 6 - TRADING VOLUME % Change Particulars Dec’17 June’17 Dec’16 Dec ’17 vs June’17 vs June’17 Dec’16 Trading Volume (shares) (avg. of 1 qtr) 31,69,192 24,93,115 22,49,299 27.12% 10.84% Trading Volume (shares) (high in 1 qtr) 2,88,33,457 2,61,97,413 2,54,68,043 10.06% 2.86% Trading Volume (shares) (low in 1 qtr) 2,28,998 5,57,193 3,35,967 -58.90% 65.85% Ratio - High/low trading volume 125.91 47.02 75.81 167.80% -37.98% Ratio - High/average trading volume 9.10 10.51 11.32 -13.42% -7.20% Source - Capitaline

TABLE 7 (A): OWNERSHIP & MANAGEMENT RISKS Dec-17 Jun-17 Dec-16 Comments

Promoter shareholding 74.36 74.36 74.90 • No new equity shares were issued during 1st Jan’ 2017 to ST 31 Dec’ 2017. Public - Institutional 0.51 0.55 0.56 • The promoter shareholding decreased by 0.54% due to shareholding market activity. • No major change was observed in the shareholding Public - Others shareholding 25.13 25.09 24.54 pattern during the said period. Shareholding(%) Non - Promoter Non - Public • The promoters have pledged 34.97% of their 0.00 0.00 0.00 Shareholding shareholding. Source - NSE

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STAKEHOLDERS EMPOWERMENT SERVICES TATA TELESERVICES (MAHARASHTRA) LTD. www.tatateleservices.com SECTOR: TELECOM SERVICES REPORTING DATE: 25TH JANUARY, 2018 MAJOR SHAREHOLDERS (AS ON 31st DECEMBER 2017) S. No. Promoters Shareholding S. No. Public Shareholders Shareholding 1 Tata Teleservices Limited 36.54% 2 Tata Sons Limited 19.58% No Major Public shareholders. 3 NTT Docomo Inc. 11.76% 4 The Tata Power Company Limited 6.48% Source - NSE

TABLE 7 (B): OWNERSHIP & MANAGEMENT RISKS Market Activity of Promoters The Promoters shareholding decreased by 0.03% during the FY 2016-17. Preferential issue to promoters No preferential issue of shares was made to the promoters during the FY 2016-17. Preferential issue to others No preferential issue of shares was made to other shareholders during the FY 2016-17. GDRs issued by the Company The Company did not issue any GDRs during the FY 2016-17. Issue of ESOPs/ Issue of shares other The Company did not issue any shares to the employees under its ESOP Scheme during than Preferential allotment the FY 2016-17. Source - Annual Report FY 16-17

TABLE 8: PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY Sr. No. Name and Description of main products / services % to Total turnover of the Company 1 Wired telecommunications activities 35.70% 2 Wireless telecommunications activities 64.30% Source - Annual Report FY 16-17

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STAKEHOLDERS EMPOWERMENT SERVICES TATA TELESERVICES (MAHARASHTRA) LTD. www.tatateleservices.com SECTOR: TELECOM SERVICES REPORTING DATE: 25TH JANUARY, 2018 Glossary

Equity: The equity shares capital of the Company

Net Worth: The amount by which the Assets exceeds the liabilities excluding shareholders’ funds of the Company Turnover: The revenue earned from the operations of the Company

EPS: Earning Per Share is net profit earned by the Company per share Profit After Tax 퐸푃푆 = Number of outstanding shares P/E ratio: It is the ratio of the Company’s share price to earnings per share of the Company Price of each share 푃/퐸 푟푎푡𝑖표 = Earnings per share Current Assets: Cash and other assets that are expected to be converted to cash in one year

Fixed Assets: assets which are purchased for long-term use and are not likely to be converted quickly into cash, such as land, buildings, and equipment

Total Assets: Current Assets + Fixed Assets

Investments: An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the future.

Finance Cost: The Financing Cost (FC), also known as the Cost of Finances (COF), is the cost and interest and other charges incurred during the year in relation to borrowed money.

Long Term Liabilities: Long-term liabilities are liabilities with a maturity period of over one year.

Current Liabilities: A company's debts or obligations that are due within one year.

Inventory Turnover ratio: Inventory Turnover is a ratio showing how many times a company's inventory is sold and replaced over a period. Sales Turnover 퐼푛푣푒푛푡표푟푦 푇푢푟푛표푣푒푟 푟푎푡𝑖표 = Inventory Debtors Turnover: Accounts receivable turnover is an efficiency ratio or activity ratio that measures how many times a business can turn its accounts receivable into cash during a period Sales Turnover 퐷푒푏푡표푟푠 푇푢푟푛표푣푒푟 푟푎푡𝑖표 = Accounts recievables Fixed Asset Turnover: The fixed-asset turnover ratio is a financial ratio of net sales to fixed assets Sales Turnover 퐹𝑖푥푒푑 퐴푠푠푒푡 푇푢푟푛표푣푒푟 푟푎푡𝑖표 = Fixed Assets Current Asset Turnover: The current-asset turnover ratio is a financial ratio of net sales to fixed assets Sales Turnover 퐶푢푟푟푒푛푡 퐴푠푠푒푡 푇푢푟푛표푣푒푟 푟푎푡𝑖표 = Current Assets Operating Profit Margin: Operating margin is a measurement of what proportion of a Company’s revenue is left over after paying for variable costs of production such as wages, raw materials etc. It can be calculated by dividing a Company’s operating income (also known as “operating profit”) during a given period by its sales during the same period. Operating profit 푂푝푒푟푎푡𝑖푛푔 푃푟표푓𝑖푡 푀푎푟푔𝑖푛 = Sales Turnover Net Profit Margin: Net profit margin is the percentage of revenue left after all expenses have been deducted from sales Net profit 푁푒푡 푃푟표푓𝑖푡 푀푎푟푔𝑖푛 = Sales Turnover

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STAKEHOLDERS EMPOWERMENT SERVICES TATA TELESERVICES (MAHARASHTRA) LTD. www.tatateleservices.com SECTOR: TELECOM SERVICES REPORTING DATE: 25TH JANUARY, 2018 Return on Assets: ROA tells you what earnings were generated from invested capital (assets) Net profit 푅푒푡푢푟푛 표푛 퐴푠푠푒푡푠 = Total Assets Return on equity/net worth: return on equity (ROE) is the amount of net income returned as a percentage of shareholders’ equity. Net profit 푅푒푡푢푟푛 표푛 퐸푞푢𝑖푡푦 = Net worth Return on Capital Employed: Return on capital employed (ROCE) is a financial ratio that measures a company's profitability and the efficiency with which its capital is employed. Net profit 푅푒푡푢푟푛 표푛 퐶푎푝𝑖푡푎푙 퐸푚푝푙표푦푒푑 = Total Debt + Equity share capital Current ratio: The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months. It compares a firm's current assets to its current liabilities. Current Assets 퐶푢푟푟푒푛푡 푟푎푡𝑖표 = Current Liabilities Quick ratio: The quick ratio is a measure of how well a Company can meet its short term financial liabilities. Current Assets − Inventories 푄푢𝑖푐푘 푟푎푡𝑖표 = Current Liabilities Cash ratio: The ratio of the liquid assets of a Company to its current liabilities. Current Assets − Inventories − Account Recievables 푄푢𝑖푐푘 푟푎푡𝑖표 = Current Liabilities Working Capital Turnover ratio: The working capital turnover ratio is also referred to as net sales to working capital. It indicates a Company's effectiveness in using its working capital. 푆푎푙푒푠 푇푢푟푛표푣푒푟 푊표푟푘𝑖푛푔 퐶푎푝𝑖푡푎푙 푇푢푟푛표푣푒푟 푟푎푡𝑖표 = Current Assets − Current Liabilities Debt to Equity ratio: The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. 푆ℎ표푟푡 푇푒푟푚 퐷푒푏푡 + 퐿표푛푔 푇푒푟푚 퐷푒푏푡 퐷푒푏푡 푡표 퐸푞푢𝑖푡푦 푟푎푡𝑖표 = 푁푒푡 푊표푟푡ℎ Interest Coverage ratio: The Interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a Company can pay interest on outstanding debt. 퐸푎푟푛𝑖푛푔 퐵푒푓표푟푒 퐼푛푡푒푟푒푠푡 푎푛푑 푇푎푥 퐼푛푡푒푟푒푠푡 퐶표푣푒푟푎푔푒 푅푎푡𝑖표 = 퐹𝑖푛푎푛푐푒 퐶표푠푡 Market Cap/Sales ratio: Market Cap/sales ratio, Price–sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is calculated by dividing the company's market cap by the revenue in the most recent year; or, equivalently, divide the per- share stock price by the per-share revenue. 푀푎푟푘푒푡 퐶푎푝 푀푎푟푘푒푡 퐶푎푝/푆푎푙푒푠 푟푎푡𝑖표 = 푆푎푙푒푠 푇푢푟푛표푣푒푟 Market Cap/ Net Worth ratio: It is a valuation ratio calculated by dividing Company’s market cap to net worth. 푀푎푟푘푒푡 퐶푎푝 푀푎푟푘푒푡 퐶푎푝/푁푒푡푤표푟푡ℎ 푟푎푡𝑖표 = 푁푒푡푤표푟푡ℎ Market Cap/ PAT ratio: It is a valuation ratio calculated by dividing Company’s market cap to net profit. 푀푎푟푘푒푡 퐶푎푝 푀푎푟푘푒푡 퐶푎푝/푃퐴푇 푟푎푡𝑖표 = 푛푒푡 푝푟표푓𝑖푡 Market Cap/ EBITDA ratio: It is a valuation ratio calculated by dividing Company’s market cap to EBITDA.

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STAKEHOLDERS EMPOWERMENT SERVICES TATA TELESERVICES (MAHARASHTRA) LTD. www.tatateleservices.com SECTOR: TELECOM SERVICES REPORTING DATE: 25TH JANUARY, 2018 푀푎푟푘푒푡 퐶푎푝 푀푎푟푘푒푡 퐶푎푝/퐸퐵퐼푇퐷퐴 푟푎푡𝑖표 = 퐸퐵퐼푇퐷퐴 Trading Volume (shares) (avg. of 1 year): Average number of shares/day traded in 1 year

Trading volume (shares) (high in 1 year): Highest number of shares/day traded in 1 year

Trading volume (shares) (minimum in 1 year): Lowest number of shares traded on any one day in 1 year

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STAKEHOLDERS EMPOWERMENT SERVICES TATA TELESERVICES (MAHARASHTRA) LTD. www.tatateleservices.com SECTOR: TELECOM SERVICES REPORTING DATE: 25TH JANUARY, 2018 DISCLAIMER

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