%20PRIVATE%20LIMITED%2024-Jun-2006_files/image002.jpg)
MIRA
INFORM REPORT
|
Report Date : |
24th
June, 2006. |
IDENTIFICATION
DETAILS
|
Name : |
CONTRACT
ADVERTISING (INDIA) PRIVATE LIMITED |
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Registered Office : |
Vaswani Chambers, 264, Dr. Annie Besant Road,
Worli, Mumbai – 400 025, Maharashtra, India. |
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Country : |
India |
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Financials (as on) : |
31.03.2004 |
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Date of Incorporation : |
02.06.1969 |
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Com. Reg. No.: |
11-14297 |
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CIN No.: [Company
Identification No.] |
U74140MH2000PLC903971 U74300MH1969PTC014297 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMC05965B |
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PAN No.: [Permanent
Account No.] |
AAATC5522B |
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Legal Form : |
Private
Limited Liability Company |
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Line of Business : |
Subject
is engaged in providing Advertising Services |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD
725000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
The
company is a subsidiary of Hindustan Thompson Associates Limited, Mumbai. Available
information indicates high financial responsibility of the company. Trade
relations are fair. Payments are correct and as per commitments. The
company can be considered good for normal business dealings at usual trade
terms and conditions. |
LOCATIONS
|
Registered Office : |
Vaswani Chambers, 264, Dr. Annie Besant Road,
Worli, Mumbai – 400 025, Maharashtra, India. |
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Tel. No.: |
91-22-2820 3472 / 3474 |
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Fax No.: |
91-22-2820 3478 |
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E-Mail : |
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Corporate
Office : |
Plot No. A-11, High Ground, Street No.5, MIDC Marol Industrial Area,
Andheri (East), Mumbai – 400 093, Maharashtra, India. |
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Branches
: |
DELHI |
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Tel.
No.: |
91-11-42300300 |
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Branches
: |
BANGALORE |
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Tel.
No.: |
91-80-22226887 |
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Branches
: |
MUMBAI |
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Tel.
No.: |
91-22-24306041
/ 6042 |
DIRECTORS
|
Name : |
Mr. G.
G. Desai |
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Designation : |
Director |
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Name : |
Mr. M.
K. Khanna |
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Designation : |
Director |
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Name : |
Mr.
Miles Colebrook |
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Designation : |
Director |
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Name : |
Mr.
Pradeep H. Parkar |
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Designation : |
Associate
Commercial Director |
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Name : |
Mr.
Marwah D |
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Designation : |
Vice
President – Bangalore |
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Date of Birth/Age : |
47
Years |
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Qualification : |
M.B.A |
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Experience : |
21
Years |
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Date
of Appointment : |
01.11.1999 |
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|
|
|
Name : |
Mr.
Mridul P |
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Designation : |
Vice
President – Delhi |
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Date of Birth/Age : |
41
Years |
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Qualification : |
B.A
(Hons) |
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Experience : |
21
Years |
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Date
of Appointment : |
03.11.2003 |
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|
|
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Name : |
Mr.
Sabmis R. |
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Designation : |
Vice
President – Mumbai |
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Date of Birth/Age : |
41
Years |
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Qualification : |
M.B.A |
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Experience : |
19
Years |
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Date
of Appointment : |
30.11.1994 |
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|
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Name : |
Mr.
Srivastava R |
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Designation : |
Vice
President – Mumbai |
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Date of Birth/Age : |
40
Years |
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Qualification : |
M.B.A |
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Experience : |
18
Years |
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Date
of Appointment : |
01.09.1990 |
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|
|
|
Name : |
Mr.
Swaminathan S |
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Designation : |
Vice
President – Mumbai |
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Date of Birth/Age : |
37
Years |
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Qualification : |
B.E.,
M.B.A |
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Experience : |
14
Years |
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Date
of Appointment : |
05.09.2002 |
BUSINESS DETAILS
|
Line of Business : |
Subject
is engaged in providing Advertising Services |
GENERAL
INFORMATION
|
No. of Employees : |
300 |
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|
|
|
Bankers : |
v
The
Shamrao Vithal Co-operative Bank Limited, Mumbai, Maharashtra v
The
Hongkong and Shanghai Banking Corporation Limited, Bangalore, Culcutta,
Chennai, Delhi & Mumbai. |
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Facilities : |
-- |
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Banking Relations : |
Good |
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Auditors : |
Deloitte
Haskins & Sells |
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Qualification: |
Charted
Accountant |
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Address: |
12,
Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai – 400 018,
India. |
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Tel. No.: |
91-22-56679000 |
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Fax No.: |
91-22-56679025 |
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Parent Company: |
Hindustan
Thompson Associates Limited, Mumbai |
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Associate: |
Fortune
Communications Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
50000 |
Equity
Shares |
Rs. 100/- each |
Rs. 5.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
2000 |
Equity
Shares |
Rs. 100/- each |
Rs. 2.000 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2004 |
31.03.2003 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
2.000 |
2.000 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
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|
3] Reserves & Surplus |
|
179.233 |
163.110 |
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH |
|
181.233 |
165.110 |
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|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
0.601 |
1.271 |
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2] Unsecured Loans |
|
0.000 |
0.000 |
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TOTAL BORROWING |
|
0.601 |
1.271 |
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DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
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TOTAL |
|
181.834 |
166.381 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
34.442 |
33.538 |
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Capital work-in-progress |
|
0.000 |
0.000 |
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INVESTMENT |
|
0.050 |
0.050 |
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DEFERREX TAX ASSETS |
|
16.129 |
8.858 |
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CURRENT ASSETS, LOANS & ADVANCES |
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|
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Inventories |
|
0.000 |
0.000 |
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Sundry Debtors |
|
127.461 |
177.458 |
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Cash & Bank Balances |
|
181.178 |
159.722 |
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Other Current Assets |
|
0.000 |
0.000 |
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Loans & Advances |
|
77.084 |
97.785 |
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Total Current Assets |
|
385.723 |
434.965 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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|
Current Liabilities |
|
224.200 |
280.043 |
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|
Provisions |
|
30.310 |
30.987 |
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Total Current Liabilities |
|
254.510 |
311.030 |
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Net Current Assets |
|
131.213 |
123.935 |
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MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
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|
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|
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TOTAL |
|
181.834 |
166.381 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2004 |
31.03.2003 |
|
Sales Turnover [including other income] |
|
310.797 |
303.835 |
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|
|
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|
Profit/(Loss)
Before Tax |
|
76.239 |
70.127 |
|
Provision
for Taxation |
|
32.907 |
27.266 |
|
Profit/(Loss)
After Tax |
|
43.332 |
42.861 |
|
|
|
|
|
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Total
Expenditure |
|
234.557 |
233.708 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2004 |
31.03.2003 |
|
PAT / Total Income |
(%) |
|
13.94 |
14.11 |
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Net
Profit Margin (PBT/Sales) |
(%) |
|
24.53 |
23.08 |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
|
17.47 |
14.69 |
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Return
on Investment (ROI) (PBT/Networth) |
|
|
0.42 |
0.42 |
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Debt
Equity Ratio (Total
Liability/Networth) |
|
|
1.41 |
1.89 |
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Current
Ratio (Current
Asset/Current Liability) |
|
|
1.52 |
1.40 |
LOCAL AGENCY
FURTHER INFORMATION
The
company maintained its’ high creative standards during the year and continued
to get recognition from its’ peers in the industry in the form of awards at all
major functions across the country.
During
the year under report the company provided advertising services to overseas
clients.
Performance:
The
revenue during the year under review stood at Rs. 310.800 Millions as against
Rs. 303.800 Millions for the year-ended 31.12.2003. The profits before and
after tax were Rs. 76.200 Millions and Rs. 43.300 Millions, as compared to
those of previous year of Rs. 70.100 Millions and Rs. 42.900 Millions, an
increase of 9% and 1%, respectively.
The
major new business gains for the year under review include HSBC, Walt Disney,
Visa, Universal Dairy Products and Dollar Company. However, more satisfying
were the gains of additional business from existing clients like Dabur and
Kinetic, a testimony of the faith reposed in their services. The company
continued its focus on related specialized services such as Health – Care and
Design which are being well received in the market place and have added to the
revenue for the year.
The
company continued its efforts to manage costs better and to increase
productivity. The efforts have contributed in increasing the profit as well as
the efficiency of operations.
Dividend:
The
board declared an interim dividend of Rs. 0.001 Millions per equity share of
Rs. 100/- each on 24.03.2004. The Directors recommended that the same be
treated as the finall dividend payable for the financial year ended 31.03.2004.
Shareholders
Funds:
Shareholders
fund as at the end of the financial year, amounted to Rs. 181.230 Millions
compared to Rs. 165.100 Millions at the end of the previous year, an increase
of 10%.
Company
Background:
Contract
Advertising (India) Private Limited (the company), is a subsidiary of Hindustan
Thompson Associates Private Limited and a part of Global WPP Group. It was
incorporated on 02.06.1969. The company is engaged in the business of
advertising.
Fixed
Assets:
Buildings,
Furniture & Fittings, Computers, Office equipment, Photographic and other
equipment, Vehicle etc.
AS
PER WEBSITE:
About
Us:
They are the one-to-one communication
division of Contract Advertising, a member of the WPP network.
Starting off as an offline direct
marketing company in 1992 to look at the Direct Marketing needs of clients, iContract
has now evolved into a full service, technology driven one-2-one Customer
Lifecycle Management company that offers solutions like direct marketing, event
and promotions, online marketing, database management and analytics and
customer contact solutions in addition to one-to-one consulting. In fact, it is
the first direct response outfit, in India, to have made the transition from
traditional offline direct marketing to ‘Hybrid Marketing’, a combination of
both offline and online direct marketing.
iContract’s mission is to help brands
build and sustain measurable relationships with consumers, across touch points
by integrating emerging technologies.
With full-fledged offices in Mumbai,
Bangalore and Delhi, iContract has a professional team with experience in
Customer Centric strategy, brand understanding, online marketing strategy,
consumer promotions, loyalty programs, database management, relationship
marketing and one-to-one consulting, thus enabling clients to effectively
communicate and manage a customer’s lifecycle with a brand.
Customer
Lifecycle:
In a survey among companies*, 89% of
respondents from organizations said that customer information was extremely
crucial to the success of their business. Almost, half(43%), could not identify
the principal causes of customer churn. And 83% of these respondents put
identification and retention of profitable customers as their first marketing
objective.
Customer management and customer centric
business processes will become the key differentiator for companies to succeed
in an increasingly competitive global marketplace. Customer Lifecycle is all
about
iContract, believes in this philosophy of
alignment of these three domains as this is critical to manage customer
relationships both in the short-term and long-term. Only then can customer
management programs achieve the objective of increased revenues, lower costs
and optimized customer lifetime value.
The customer Lifecycle management approach
encompasses everything from examining and developing ideas, keeping in mind all
customer interactions across the organization to totally ‘immersing’ the
customer and creating suitable lock-ins for life. This approach is all about
understanding the underlying patterns of behaviour, building communication
ideas and reengineering an organization’s response process.
SERVICES
• Customer Acquisition and Retention Strategies
• Database Strategy, Implementation and Management
• Database Audit and Analytics
• Loyalty Management
• Relationship Programs
• Call Centre Management
• Online Marketing and Strategy
• One-to-One Consulting
Articles:
At iContract it is their constant
endeavour to present their view on customer management and one-to-one marketing
programs. From time-to-time, they contribute to this industry by talking and
writing in different forums on :
- Their
understanding of the best practices for building lasting customer
relationships.
- What
it takes to build a successful customer management program.
- Trends
and their future view on how they see the evolution and growth of database
marketing and relationship programs.
- The
nuances of one-to-one marketing
... and many more
similar areas of customer lifecycle management for brands.
Look forward to a listing their articles and papers soon.
Case
Studies:
Here are some case studies that showcase their
approach to successfully building and implementing customer management
programs.
CATEGORY CLIENT
%20PRIVATE%20LIMITED%2024-Jun-2006_files/image004.gif){kind=small}
Banking and Financial Services ICICI Bank
Business to Business Kimberly-Clark* Professional
Consumer Durables Blue Star
Fast Moving Consumer Goods (FMCG) Cadbury
Healthcare Novo Nordisk
Retail Shoppers' stop
Awards:
They believe awards are just a benchmark of the
quality of their ideas. The true test of a great idea is one that works in the
marketplace for their clients.
Won the
Lions Direct Gold for the ICICI Bonds Campaign
Won the
Gold Effie, Grand Effie and People’s Choice Trophy for the ICICI Bonds Campaign
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 |
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 |