MIRA
INFORM REPORT
|
Report Date : |
22nd
June 2006 |
IDENTIFICATION
DETAILS
|
Name : |
UNITED
HOME ENTERTAINMENT PRIVATE LIMITED |
|
|
|
|
Registered Office : |
Parijaat
House, 1076, Dr, E. Moses Road, Worli Naka, Mumbai – 400018, Maharashtra,
India |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2005 |
|
|
|
|
Date of Incorporation : |
13.01.2004 |
|
|
|
|
Com. Reg. No.: |
11-143978 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U92130MH2004PTC143978 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMU04246E |
|
|
|
|
Legal Form : |
Private
Limited Liability Company. |
|
|
|
|
Line of Business : |
Broadcaster
of Hungama TV an entertainment channel for kids. |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
Maximum Credit Limit : |
|
|
|
|
|
Status : |
New
Company |
|
|
|
|
Payment Behaviour : |
Slow
but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject
is a relatively new company and yet to establish itself. It is the
broadcaster of HUNGAMA TV, an entertainment channel for kids. Directors are
reported as experienced and respectable businessmen. Trade relations are
fair. General financial position is
moderate having incurred some initial losses. Payments are reported as slow
but correct. The
company can be considered for small business dealings with slight caution,
initially. |
LOCATIONS
|
Registered Office : |
Parijaat
House, 1076, Dr, E. Moses Road, Worli Naka, Mumbai – 400018, Maharashtra,
India |
|
Tel. No.: |
91-22-24905353 |
|
Fax No.: |
91-22-249453988 / 24905370 |
|
Website : |
|
|
|
|
|
Factory
1 : |
No. 5,
Community Centre, Pansheel Park, New Delhi - 110017 |
|
Location : |
Rented
|
|
|
|
|
Factory
2 : |
203,
Citi Centre, 28/13, Church Street, Bangalore – 560001 |
|
Location : |
Rented
|
|
|
|
DIRECTORS
|
Name : |
Mr.
Rohinton Screwvala |
|
Designation : |
Director
|
|
Address : |
31,
Lamdmark, 17/738, Dhanukar Marg, Mumbai – 400026, Maharashtra, India |
|
Date of Birth/Age : |
08.09.1956 |
|
Date of Appointment : |
13.01.2004 |
|
|
|
|
Name : |
Mrs.
Zarina Mehta |
|
Designation : |
Director
|
|
Address : |
31,
Lamdmark, 17/738, Dhanukar Marg, Mumbai – 400026, Maharashtra, India |
|
Date of Birth/Age : |
06.11.1961 |
|
Date of Appointment : |
13.01.2004 |
|
|
|
|
Name : |
Ronald
D’Mello |
|
Designation : |
Director
|
|
Address : |
502,
Genesis Apartment, St. Francis Avenue, Santacruz – (W), Mumbai – 400084,
Maharashtra, India |
|
Date of Birth/Age : |
10.03.1964 |
|
Date of Appointment : |
01.03.2004 |
|
|
|
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
|
No. of Shares |
|
Mr.
Rohinton Screwvala |
|
5000 |
|
Mrs.
Zarina Mehta |
|
5000 |
|
UTV Software Communications Limited |
|
490000 |
|
Unilazer
Exports and management Consultants Limited |
|
500000 |
|
|
|
|
BUSINESS DETAILS
|
Line of Business : |
Broadcaster
of Hungama TV an entertainment channel for kids. |
|
|
|
|
Products : |
Live
Action Programmes (Produced by Third party) Animation
Programmes (Acquired from other counter) Movies
(Acquared) |
|
|
|
|
Imports from : |
Japan ,
UK and USA |
|
|
|
GENERAL
INFORMATION
|
|
|
||||||||
|
No. of Employees : |
50 |
||||||||
|
|
|
||||||||
|
Bankers : |
Not
available |
||||||||
|
|
|
||||||||
|
Facilities : |
|
|
|
|
|
Banking Relations : |
-- |
|
|
|
|
Auditors : |
Price
Waterhouse and Company Chartered
Accountants |
|
|
|
|
Subsidiaries : |
v United
Entertainment Solutions Private Limited (UESPL) Line of Business : Post Production
Facilities v UTV
Communications (USA) LLC ( UTV US) v UTV
Communication (UK) Limited ( UTV UK) v UTV
Communications (Mauritius) Limited ( UTVM) v UTV
International Holdings, BVI ( UTVIH) |
|
|
|
|
Associates : |
v UTV
Software Communication Limited Line of Business : Media and Enterprises v Unilazer
Exports and Management Consultants Limited v Utilize
Hongkong Limited v United
Tele – Shopping and Marketing Limited v United
Brushers Private Limited v United
Creative Television Limited v Television
News and Entertainment India Limited v Trish
Credit Private Limited v Vijay
Broadcasting Private Limited v United
Enterprises Software Private Limited |
|
|
|
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 100.000 millions |
|
20000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 200.000 millions |
|
|
Total
|
|
Rs. 300.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 10.000 millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
10.000 |
0.100 |
|
|
2] Advance against shares capital |
|
195.100 |
7.767 |
|
|
3] Reserves & Surplus |
|
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
|
(314.231) |
0.000 |
|
|
NETWORTH |
|
109.131 |
7.867 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
171.071 |
0.000 |
|
|
2] Unsecured Loans |
|
0.000 |
0.000 |
|
|
TOTAL BORROWING |
|
171.071 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
61.940 |
7.867 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
12.083 |
0.835 |
|
|
Capital work-in-progress |
|
|
|
|
|
|
|
|
|
|
|
INVESTMENT |
|
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
212.358 |
0.000 |
|
|
Sundry Debtors |
|
8.017 |
0.000 |
|
|
Cash & Bank Balances |
|
0.504 |
0.100 |
|
|
Other Current Assets |
|
0.000 |
0.000 |
|
|
Loans & Advances |
|
39.693 |
0.737 |
|
Total Current Assets |
|
260.572 |
0.837 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
209.985 |
0.805 |
|
|
Provisions |
|
0.730 |
0.072 |
|
Total Current Liabilities |
|
210.715 |
0.877 |
|
|
Net Current Assets |
|
49.857 |
0.040 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
7.072 |
|
|
|
|
|
|
|
|
TOTAL |
|
61.940 |
7.867 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
|
Sales Turnover [including other income] |
|
125.000 |
21.222 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
|
NA |
(314.231) |
|
Provision
for Taxation |
|
|
-- |
|
Profit/(Loss)
After Tax |
|
NA |
(314.231) |
|
|
|
|
|
|
Export
Value |
|
NA |
0.200 |
|
|
|
|
|
|
Total
Expenditure |
|
NA |
315.095 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
|
(1480.69) |
-- |
|
|
|
|
|
|
|
Net
Profit Margin (PBT/Sales) |
(%) |
|
(1480.69) |
-- |
|
|
|
|
|
|
|
Return
on Total Assets (PBT/Total
Assets} |
(%) |
|
(115.25) |
-- |
|
|
|
|
|
|
|
Return
on Investment (ROI) (PBT/Networth) |
|
|
(2.88) |
-- |
|
|
|
|
|
|
|
Debt
Equity Ratio (Total
Liability/Networth) |
|
|
3.50 |
0.11 |
|
|
|
|
|
|
|
Current
Ratio (Current
Asset/Current Liability) |
|
|
1.24 |
0.95 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed
Assets
v
Plant and
Machinery
v Furniture and Fixture
v Computer
v Office Equipments
v Computer Software
Sales
and Operations
This was
the first year of operations of the company. The company, in September, 2004,
Launched India ‘s first kids channel entitled “HUNGAMA TV”. This channel is a
general entertainment channel for the kids in the age group 4-14 years. This is
an original content channel on Indian skies with its motto “of the kids, for
the kids and by the kids”. The company hopes to make this venture successful
sooner than other general entertainment channel ventures. In its year of launch
the channel has established itself as a strong contender in the segment. During
the first six months of its operations the company achieved sales revenues of
Rs. 21.00 millions
Future
Outlook
The kids
television viewing segment is expected to be poised for high growth in terms of
viewer ship shift as well as adverting and subscription revenues. With more
than one third cable and satellite television homes comprising of the home with
kid in the age group of 4-14 this segment is poised for growth curves earlier
experienced by the news and current affairs segment in India. the company being
the front runner in locally produced original content channel for age group
4-14, is expected to take disproportionate share of this growth in the segment
also is expected to experienced new entrants and competition from overseas
brands the company will adopt suitable strategies to stay ahead in competition
form overseas brands. The company will adopt suitable strategies to stay ahead
in competition with its first mover advantage.
United Entertainment Solutions Private
Limited (UESPL)
The Company is in the business of rendering video
special effects and post production services to producers of films,
advertisement commercials and other videos and has full fledged state of the
art equipments and facilities to render the services.
UESPL posted Total income of Rs. 107.152 millions and a net profit of Rs. 2.265
millions for the year ended 31st March,
2005.
UTV Communications (USA) LLC ( UTV US)
UTV US was incorporated on April 26, 2004 with an
intention to carry out Film Acquisition, Syndication and Distribution business
in the United State of America(North America) and other surrounding
territories. As at 31st March, 2005 it posted a sales of US$
2,735,279 and a net profit of US$ 38,643. The US
operations will also spearhead our growth in Animation
and International Movie Co-production. The Company signed its first
International Co-production with Fox Searchlight and Entertainment on Mira
Nair's directed movie -"The Namesake".
UTV Communication (UK) Limited ( UTV UK)
UTV UK was incorporated on September 8, 2004 with an
intention to carry out Film Acquisition, Syndication and Distribution in the
United Kingdom. As at 31st March,
2005 it posted a sales of GBP 815,876 and a net profit of GBP 2,015.
UTV Communications (Mauritius) Limited (
UTVM)
UTVM was incorporated on October 4,2004 with an
intention to carry out Film Acquisition, Syndication and Distribution for rest
of the world excluding USA and UK. As at 31st March,
2005 it posted a sales of USD 171,800 and a net profit of USD 48,330.
UTV International Holdings, BVI ( UTVIH)
UTV IH is a company incorporated on August 28, 1996
and is primarily an investment company. It is the holding company for Antah UTV
Multimedia & Communications Sdn Bhd, a company incorporated in Malaysia.
UTV IH holds 70% equity in Antah UTV Multimedia & Communications Sdn Bhd
and the balance 30% is held by local promoters. The growth prospects of UTV IH
is directly related to the growth of Antah UTV Multimedia & Communications
Sdn Bhd. As at 31st March, 2005 UTV IH posted a
consolidated sales of USD 254.770 and net profit of USD 12.916.
Joint Venture
United Home Entertainment Private Limited
( UHE)
UHE was incorporated in the month of January, 2004 and
within a short span from its inception, UHE launched a Kids Channel by the name
and style of "HUNGAMA TV", being the first of its kind in India. This
Channel is a general entertainment channel for the age group of 4 -14 years
target audience. This is an original content channel on Indian skies with its
motto "Of the Kids, for the Kids and by the Kids". UHE hopes to make
this venture successful, sooner than other general entertainment channel
ventures.
CMT REPORT [Corruption, Money
laundering & Terrorism]
The Public
Notice information has been collected from various sources including but not
limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international anti-terrorism
laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the subject of any
formal or informal allegations, prosecutions or other official proceeding for
making any prohibited payments or other improper payments to government
officials for engaging in prohibited transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation
with Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation
Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs. 46.34 |
|
UK
Pound |
1 |
Rs. 84.27 |
|
Euro |
1 |
Rs. 57.96 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
27 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |