MIRA
INFORM REPORT
|
Report Date : |
24th
June 2006 |
IDENTIFICATION
DETAILS
|
Name : |
HINDUSTAN
THOMPSON ASSOCIATES PRIVATE LIMITED |
|
|
|
|
Registered Office : |
Peninsula
Chambers, Ganpatrao Kadam Marg, Lower Parel Mumbai – 400013, Maharashtra,
India |
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|
Country : |
India |
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|
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|
Financials (as on) : |
31.12.2004 |
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Date of Incorporation : |
23.03.1938 |
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|
Com. Reg. No.: |
11-2771 |
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CIN No.: [Company
Identification No.] |
U99999MH1938PTC002771 |
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|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMH00463B |
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PAN No.: [Permanent
Account No.] |
AAACH1463M |
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|
Legal Form : |
Private
Limited Liability Company. |
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Line of Business : |
The company is engaged mainly in the business of advertising and
related information consultancy. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD
6000000 |
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|
|
|
Status : |
Good |
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
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Comments : |
Subject
is a part of J Walter Thompson and subsidiary of WPP Holding (Holland) BV.
The Netherlands. Available
information indicates high financial responsibility of the company. Trade
relations are fair. Financial position is good. Payments are correct and as
per commitments. The
concern can be considered good for any normal business dealings. It can be
regarded as a promising business partner in a medium to long run. |
LOCATIONS
|
Registered Office : |
Peninsula
Chambers, Ganpatrao Kadam Marg, Lower Parel Mumbai – 400013, Maharashtra,
India |
|
Tel. No.: |
91-22-56635555 |
|
Fax No.: |
91-22-56635656 |
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|
|
|
Factory
1 : |
Devatha
Plaza, 131, Residency Road, Bangalore, India |
|
Tel.
No.: |
91-80-22273348 |
|
Fax
No.: |
91-80-22243435 |
|
E-Mail
: |
DIRECTORS
|
Name : |
Mr.
Gagrat Rustam Jehangir |
|
Designation : |
Director
|
|
Address : |
Buena
Vista, Pochkhanawala Road, New Delhi, Mumbai – 400925 |
|
Date of Birth/Age : |
07.20.1932 |
|
Date of Appointment : |
25.06.1974 |
|
Election Identity Card No. : |
MT/05/030/031023 |
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|
|
|
Name : |
Mr.
Kapadia Natotam Pradip |
|
Designation : |
Director
|
|
Address : |
Govind
Building, 140, Princess Street, Mumbai- 400002 |
|
Date of Birth/Age : |
09.30.1951 |
|
Date of Appointment : |
15.07.2005 |
|
Date of Casing : |
15.07.2005 |
|
Election Identity Card No. : |
MT/04/021/090691 |
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|
|
|
Name : |
Mr.
Bilpodiwala Kaikhushru Homi |
|
Designation : |
Director
|
|
Address : |
6C,
Crystal, 36, Altamount Road, Mumbai –400026 |
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Date of Birth/Age : |
11.05.1928 |
|
Date of Appointment : |
23.09.1988 |
|
Election Identity Card No. : |
MT/04/024/252331 |
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|
|
|
Name : |
Mr.
Trencher Jeffrey Lewis |
|
Designation : |
Director
|
|
Address : |
29,
Penn Boulevard, Scarsdale, New York, USA- 10583 |
|
Date of Birth/Age : |
01/08/1952 |
|
Date of Appointment : |
30/06/1994 |
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|
|
|
Name : |
Mr.
Colebrook William Merril Miles |
|
Designation : |
Director
|
|
Address : |
South
Farm Sparssholt , Near – Wantage Oxon OX – 129E |
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Date of Birth/Age : |
01.44.1948 |
|
Date of Appointment : |
11.06.1998 |
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Date of Casing : |
19.08.2004 |
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|
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Name
: |
Mr.
Thomson Chirstopher |
|
Designation
: |
Director
|
|
Address
: |
12B,
Belgravia 57, South Bay Road, Repulse Bay Hong Kong |
|
Date
of Birth/Age : |
02.01.1967 |
|
Date
of Appointment : |
24.09.2002 |
|
Date of Casing : |
26.04.2005 |
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|
|
|
Name
: |
Mr.
Mendonca Richard |
|
Designation
: |
Company
Secretary |
|
Address
: |
43,
Jal Kiran 11th Floor, Cuffe Parade, Mumbai – 400005 |
|
Date
of Birth/Age : |
05.21.1953 |
|
Date
of Appointment : |
24.07.2002 |
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|
|
|
Name
: |
Mr.
Michael Maedel |
|
Designation
: |
Director
|
|
Address
: |
19,
Ennismore Gardens, London SW 7 |
|
Date
of Birth/Age : |
07.08.1950 |
|
Date
of Appointment : |
19.08.2004 |
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Date of Casing : |
15.07.2005 |
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|
|
|
Name
: |
Mr.
Thomson Christopher |
|
Designation
: |
Director
|
|
Address
: |
12B,
Belgravia 57, South Bay Road, Repulse Bay Hong Kong |
|
Date
of Birth/Age : |
02.01.1967 |
|
Date
of Appointment : |
26.04.2005 |
|
Date of Casing : |
15.07.2005 |
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|
|
|
Name
: |
Mr.
Mahindrer Kumar Khanna |
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Designation
: |
Director
|
|
Address
: |
81-A,
Embassy Apartments, 46, Napean Sea Road, Mumbai – 200026 |
|
Date
of Birth/Age : |
10.03.1939 |
|
Date
of Appointment : |
01.05.2005 |
|
Date of Casing : |
15.07.2005 |
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|
|
|
Name
: |
Mr. C.
Haris |
|
Designation
: |
Chief
Executive |
|
|
|
|
Name
: |
Mr. T
Puliuel |
|
Designation
: |
President
- IMRB |
BUSINESS DETAILS
|
Line of Business : |
The company is engaged mainly in the business of advertising and
related information consultancy. |
|
|
|
|
Products : |
v
Advertising
v
Marketing
Research |
GENERAL
INFORMATION
|
|
|
|
Bankers : |
v
The
Hongkong and Shanghai Banking Corporation Limited v
Bank
of India |
|
Banking Relations : |
Good |
|
|
|
|
Auditors : |
Deloitte
Haskins and Sells Chartered
Accountants 12,
Dr. Annie Besant Road, Opp. Shivsagar Estate, Worli, Mumbai - 400018 |
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|
|
|
Subsidiaries : |
v Contract
Advertising India Private Limited v Fortune
Communications Private Limited v Portland
India Outdoor Advertising Private Limited v Thompson
Nepal Private Limited v
Indian Market Research Bureau
Private Limited v
Hill and Knowlton (SEA) Pte Limited v
J Walter Thompson v
Ogilvy and Mather v
Research International v
Millward Brown v
BMRB International v
Group M Media India Private limited v
Mindshare Egypt v
DYR Wunderman v
WPP Marketing Communication Vietnam v
Asiatic Mindshare Limited v
The Operations Centre Millward Brown v
The media Age – Rediffusion |
|
|
|
|
Associates and Joint Venture : |
v Kantar
Market Research Services Private Limited v IMBR
Millward Brown International Pte Limited v Lanka market
Research Bureau v TAM Media
Research Private Limited v AMRB Lic v AMRB Egypt v Walker
Information v The Henley
Centre v SGA Research
International v The BPRI
Group |
|
|
|
|
Holding Company : |
WPP
Holding (Holland) BV |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 10.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
490000 |
Equity
Shares |
Rs. 10/- each |
Rs. 4.900 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.12.2004 |
31.12.2003 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
4.900 |
4.900 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
1506.116 |
1530.183 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
1511.016 |
1535.083 |
|
|
Long Term Liability for Leased Assets |
|
3.349 |
11.798 |
|
|
TOTAL BORROWING |
|
3.349 |
11.798 |
|
|
DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
1514.365 |
1546.881 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
97.340 |
109.434 |
|
|
Capital work-in-progress |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
21.603 |
21.603 |
|
|
DEFERREX TAX ASSETS |
|
33.928 |
94.298 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
0.000 |
0.000 |
|
|
Sundry Debtors |
|
826.138 |
1143.830 |
|
|
Cash & Bank Balances |
|
1214.405 |
844.804 |
|
|
Other Current Assets |
|
0.000 |
0.000 |
|
|
Loans & Advances |
|
707.186 |
685.322 |
|
Total Current Assets |
|
2747.729 |
2673.956 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
878.112 |
1066.639 |
|
|
Provisions |
|
521.591 |
305.973 |
|
Total Current Liabilities |
|
1399.703 |
1372.612 |
|
|
Net Current Assets |
|
1348.026 |
1301.344 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
13.468 |
20.202 |
|
|
|
|
|
|
|
|
TOTAL |
|
1514.365 |
1546.881 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.12.2004 |
31.12.2003 |
|
Sales Turnover [including other income] |
|
2544.759 |
2230.512 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
|
691.369 |
574.590 |
|
Provision
for Taxation |
|
255.468 |
210.026 |
|
Profit/(Loss)
After Tax |
|
435.901 |
364.564 |
|
|
|
|
|
|
Total
Expenditure |
|
1853.390 |
1655.922 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.12.2004 |
31.12.2003 |
|
PAT / Total Income |
(%) |
|
17.12 |
16.34 |
|
|
|
|
|
|
|
Net
Profit Margin (PBT/Sales) |
(%) |
|
27.16 |
25.76 |
|
|
|
|
|
|
|
Return
on Total Assets (PBT/Total
Assets} |
(%) |
|
24.30 |
20.64 |
|
|
|
|
|
|
|
Return
on Investment (ROI) (PBT/Networth) |
|
|
0.45 |
0.37 |
|
|
|
|
|
|
|
Debt
Equity Ratio (Total
Liability/Networth) |
|
|
0.92 |
0.90 |
|
|
|
|
|
|
|
Current
Ratio (Current
Asset/Current Liability) |
|
|
1.96 |
1.94 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed
Assets
v
Residential
Flats
v
Leasehold
Improvements
v
Plant
and Machinery
v
Computer
v
Furniture
and Fixture
v
Vehicles
Financial
Result
During
the financial year 2004 the company’s revenue amounted to Rs. 2545 millions as
against Rs. 2230 millions in 2003, an increase of 14 % over previous year.
The
profit before tax was Rs. 691 millions against Rs. 575 millions of the previous
year which showed an attractive growth of 20 %
over the previous year.
Dividend
The
Board declared an interim dividend of Rs. 700 per equity share in March 2005.
this dividend of Rs. 700 per share included a special divided of Rs. 150 per
shares for the 75th year of
J Walter Thompson. The directors recommend that the interim dividend of
Rs. 700 per shares be trended the interim dividend of Rs. 700 per share be
treated as the final dividend payable for the financial yea ended December, 31,
2004. the total outflow on account of dividend was Rs. 387.83 million.
Including dividend tax.
The
years performance :
All the
units of the company i.e. advertising market research, director marketing and
public relations, were profitable during the year and also showed revenue
improvement. This enable the company to end the year with a profit before tax
growth of 20 % over the previous year.
New
business acquired during the year included UTI Mutual Fund, Life insurance
Corporation of India. Apollo Tyres, Godrej Security Equitable Godrej Air
Conditioners, SBI Mutual Fund, HPCL Power petrol and Club HP MICO Bosh, MAFOL and Incosys Finnacle.
A
notable event for the company was that J Ealter Thompson completed 75th
Memorable years in India form the time it first set up office in Mumbai in
March 1930. Also in order to reflect the change in the way the agency intends
to do business, on February, 28, 2005 the name of the agency all over the globe
was changed form J Ealter Thompso with a new logo and corporate identity.
Thompson
connect, the direct marketing unit of the company become a part of the RMG
connect network and accordingly it has been renamed as RMG connect. It will
enjoy the benefits of being a part of the international RMG network including
access to its methods, producers and tools.
IMRB,
the market research division continued to grow in revenue with multi country
and international research, customer satisfaction, qualitative research
consumer panel and business to business research business showing considerable
improvements.
All the
subsidiary companies of Hindustan Thompson Associates Private Limited also
contributed to the profitability of the company by declaring attractive
dividends.
Subsidiaries
Contract
Advertising India Private Limited
Profit
after tax showed a healthy growth of 9 % over the previous year mainly due to
new business gains. Some of the wins included HSBC, Walt Disney and LG Care.
Fortune
Communications Private Limited
Fortune,
which is engaged in the financial services sector continued to maintain its
level of profitability during the year.
Portland
India Outdoor Advertising Private
Limited
The
company which is specialised in the outdoor advertising segment also turned our
reasonable performance for the year under review.
Thompson
Nepal Private Limited
Despite
the disturbance in the country in which the company operates, it had another
successful year and in fact ended with a profit before tax growth of 6 % over
the previous year.
Indian
Market Research Bureau Private Limited
During
the year under review, the company achieved satisfactory results.
Trade
Term with
v
Aswin
Advertising
v
Cactus
Imaging India Limited
v
Express
Colour Scan Private Limited
v
Express
Process Engravers
v
Liberty
Process Works
v
Lustra
Print Process Private Limited
v
Mayur
Print House
v
New
Colour Screens Private Limited
v
Rainbow
Colour Graphics
v
Rapid
Scan Systems Limited
v
Supressa
Graphic Private Limited
v
Universal
Print Systems
v
Unique
Photo Offset
v
Venu
Graphics
v
Fold
Backs
v
Screen
Squiz
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. 46.36 |
|
UK
Pound |
1 |
Rs. 84.49 |
|
Euro |
1 |
Rs. 58.38 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--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 |
|
81 |
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 |