MIRA INFORM REPORT
|
Report Date : |
06.01.2007 |
IDENTIFICATION DETAILS
|
Name : |
TATA
SKY LIMITED |
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|
|
|
Formerly Known As : |
SPACE
TV PRIVATE LIMITED |
|
|
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Registered Office : |
3rd
Floor, Bombay Dyeing Building, Pandurang Budhkar, Worli, Mumbai-400025,
Maharashtra |
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Country : |
India |
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|
Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
09.01.2001 |
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Com. Reg. No.: |
11-130365 |
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CIN No.: [Company Identification No.] |
U92120MH2001PTC130365 |
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TAN No.: (Tax Deduction &
Collection Account No.) |
MUMS33388F |
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|
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PAN No.: (Permanent Account No.) |
AAGCS9294M |
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Legal Form : |
Private
Limited Liability Company |
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|
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Line of Business : |
To
provide direct-to-home (DTH) broadcasting services to cable TV viewers across
the country. |
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 : |
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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 joint venture of Tata and Star Television. Available information
indicates high financial responsibility of the company since the promoters
are strong. Trade relations are fair. Payments are correct and as per
commitments. The
company is entering into a new untapped market of DTH (Direct To Home
Television). Payments
are correct and as per commitments. The company can be considered good for
normal business dealings. |
LOCATIONS
|
Registered Office : |
3rd
Floor, Bombay Dyeing Building, Pandurang Budhkar, Worli, Mumbai-400025,
Maharashtra, India |
|
Tel. No.: |
91-22-66133000 |
|
Fax No.: |
91-22-66133030 |
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E-Mail : |
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Website : |
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Branches : |
Army
and Navy Building, 148, Mahatma Gandhi Road, Mumbai-400001, Maharashtra,
India |
DIRECTORS
|
Name : |
Mr.
Farokh Nariman Subedar |
|
Designation : |
Director
|
|
Address : |
Wadia
Building, Ground Floor, Babulnath Road, Mumbai-400007, Maharashtra, India |
|
Date of Birth : |
24.09.1955 |
|
Date of Appointment : |
06.02.2004 |
|
|
|
|
Name : |
Mr.
Bharat Damodar Vasani |
|
Designation : |
Director
|
|
Address : |
Flat
No. B-11, Peregrine 400, Veer Savarkar Marg, Prabhadevi, Mumbai-400025,
Maharashtra, India |
|
Date of Birth : |
24.08.1958 |
|
Date of Appointment : |
06.02.2004 |
|
|
|
|
Name : |
Mr.
Pratim Mukerjea |
|
Designation : |
Director
|
|
Address : |
402,
Marlow, Plot No.62B, Pochkhanwala Road, Worli, Mumbai-400025, Maharashtra,
India |
|
Date of Birth : |
21.11.1955 |
|
Date of Appointment : |
01.06.2004 |
|
|
|
|
|
|
|
Name : |
Mr.
Ishaat Riyasat Hussain |
|
Designation : |
Director
|
|
Address : |
Flat
No.222, 2nd Floor, B Wing, NCPA, Residential Apartments, Sir Dorab
Tata Road, Nariman Point, Mumbai-400021, Maharashtra, India |
|
Date of Birth : |
02.09.1947 |
|
Date of Appointment : |
06.02.2004 |
|
|
|
|
Name : |
Mr.
Michelle Lee Guthrie |
|
Designation : |
Director |
|
Address : |
20,
Kadoorie Avenue, Kowloon, Hong Kong |
|
Date of Birth : |
12.10.1965 |
|
Date of Appointment : |
01.06.2004 |
|
|
|
|
Name : |
Mr.
May Yin Oh |
|
Designation : |
Director |
|
Address : |
5/C,
Vienna Court, 41, Conduit Road, Midlevels, Hong Kong |
|
Date of Birth : |
14.08.1968 |
|
Date of Appointment : |
06.08.2005 |
|
|
|
|
Name : |
Mr.
Nitin Raghuwar Swaroop Atroley |
|
Designation : |
Director |
|
Address : |
E63,
Vasant Marg, Vasant Vihar, New Delhi-100057, New Delhi, India |
|
Date of Birth : |
26.04.1966 |
|
Date of Appointment : |
20.10.2005 |
|
Date of Ceasing : |
31.10.2005 |
|
|
|
|
Name : |
Mr.
Vikram Kaushik |
|
Designation : |
Managing
Director |
|
Address : |
Sanghi
House, 5th Floor, 94, Napean Sea Road, Mumbai-400006, Maharashtra,
India |
|
Date of Birth : |
17.09.1950 |
|
Date of Appointment : |
01.01.2006 |
|
Other Directorships : |
Hathway
Cable and Datacom Private Limited Media
Content and Communications Services (India) Limited |
KEY EXECUTIVES
|
Name : |
Mr.
Nariman Khan |
|
Designation : |
Company
Secretary |
|
Address : |
3-A,
Sonawalla Building, Tardeo, Mumbai-400007, Maharashtra, India |
|
Date of Birth/Age : |
09.08.1954 |
|
Date of Appointment : |
01.09.2005 |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
|
Tata
Sons Limited |
260259500 |
|
Tata
Sons Limited |
100 |
|
Tata
Sons Limited |
100 |
|
Tata
Sons Limited |
100 |
|
Tata
Sons Limited |
100 |
|
Network
Digital Distribution Services |
65065000 |
|
Tata
Sons Limited |
100 |
BUSINESS DETAILS
|
Line of Business : |
To
provide direct-to-home (DTH) broadcasting services to cable TV viewers across
the country. |
GENERAL INFORMATION
|
Bankers : |
Not
Available |
|
|
|
|
Banking Relations : |
Satisfactory |
|
|
|
|
Auditors : |
S.
R. Batliboi and Associates Chartered
Accountants 6th
Floor, Express Tower Nariman
point Mumbai-400021 A.
F. Ferguson and Company Chartered
Accountants Maker
Tower ‘E’ Cuffe
Parade Mumbai-400005 |
|
|
|
|
Associates/Subsidiaries
: |
Tata
Sons Limited Tata
Consultancy Services Limited Tata
AIG Life Insurance Company Limited Tata
Teleservices Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000000 |
Equity Shares |
Rs.10/- each |
Rs.10000.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
325325000 |
Equity Shares |
Rs.10/- each |
Rs.3253.250 millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
1951.950 |
260.260 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
|
(709.768) |
(178.037) |
|
NETWORTH
|
|
1242.182 |
82.223 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
0.000 |
0.000 |
|
|
2] Unsecured Loans |
|
0.000 |
29.000 |
|
TOTAL
BORROWING
|
|
0.000 |
29.000 |
|
|
DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
|
1242.182 |
111.223 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
|
20.351 |
1.416 |
|
Capital work-in-progress
|
|
1096.503 |
176.622 |
|
|
|
|
|
|
|
INVESTMENT
|
|
239.912 |
0.000 |
|
DEFERREX TAX ASSETS
|
|
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
|
0.000
|
0.000 |
|
|
Sundry Debtors
|
|
0.000
|
0.000 |
|
|
Cash & Bank Balances
|
|
36.110
|
22.762 |
|
|
Other Current Assets
|
|
0.000
|
0.000 |
|
|
Loans & Advances
|
|
370.628
|
147.613 |
Total Current Assets
|
|
406.738
|
170.375 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
|
513.020
|
236.220 |
|
|
Provisions
|
|
8.302
|
0.970 |
Total Current Liabilities
|
|
521.322
|
237.190 |
|
Net Current
Assets
|
|
(114.584)
|
(66.815) |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
|
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
|
1242.182 |
111.223 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
Sales Turnover [including other income]
|
|
10.879 |
0.000 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
|
(525.110) |
(135.026) |
Provision for Taxation
|
|
6.620 |
0.000 |
Profit/(Loss) After Tax
|
|
(531.730) |
(135.026) |
|
|
|
|
|
Total Expenditure
|
|
535.990 |
135.026 |
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
PAT / Total Income
|
(%)
|
|
(4887.67) |
0.00 |
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
|
(4826.82) |
0.00 |
|
|
|
|
|
|
Return on Total Assets
(PBT/Total Assets} |
(%) |
|
(122.95) |
(78.60) |
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
|
0.42 |
(1.64) |
|
|
|
|
|
|
Debt Equity Ratio
(Total Liability/Networth) |
|
|
0.42 |
2.39 |
|
|
|
|
|
|
Current Ratio
(Current Asset/Current
Liability) |
|
|
0.78 |
0.72 |
LOCAL AGENCY FURTHER INFORMATION
FIXED ASSETS:
Office equipment, Computer Equipment
The company has used short term funds for long term investment of
Rs. 215.505 millions as indicated in the CARO report. This was because as of 31st
March 2005 the Company had not yet received the Letter of Intent from the
Government of India for providing DTH services. Hence given the uncertainty on
commencement of operations. Long term funding could not be firmed up.
STATUS OF DTH PROJECT
The Company has received the Letter of Internet dated 17th
<ay 2005 from the Ministry of information and broadcasting, Government of
India vide its letter reference 8/2/2002 BP & L dated 17th May
2005. The company is now in the process of setting up the required
infrastructure in terms of facilities and manpower in order to launch the DTH
service as soon as possible. Key management is already in place, the Company
has reserved 12 transponders on INSAT 4A satellite, which is due to be launched
towards the end of August 2005. the Company is also in the process of making
the necessary applications for SACFA clearance and operating license. Subject
to timely receipt of these approvals, the company expects to able to
commercially launch its service by April 2006.
Website Details :
Revolutionise television
viewing
Subject is set to revolutionize television viewing in India through its
superior digital quality picture and sound. The service aims to empower the
Indian viewer with Choice, Control and
Convenience through its
wide array of programming choices and interactive features. Subject offers viewers a
variety of channels ranging from entertainment, sports, movies and music to
news and documentaries in DVD picture quality and CD quality sound.
Vision
Subject aims to
revolutionize Indian entertainment by offering superior DVD quality picture and
CD quality sound. Subject envisions:
- Connecting every television
home
- Empowering every television
viewer
- Revolutionizing home
entertainment
Extensive Customer Service
Network
Subject has established
an extensive customer service network across the country. It has engaged a
field force of approximately 3000 service engineers who are complemented by
high-end 24x7 call centers, manned by multi-lingual customer service
associates, trained to solve all customer problems.
Subject takes direct responsibility for installing and
servicing the hardware at every subscriber's home, thereby ensuring the highest
levels of customer service.
Subject retails its hardware and prepaid
recharge vouchers through popular consumer electronic stores to enhance
customer convenience.
Offering
In addition to new
channels and exciting interactive features, Subject offers all popular television channels, thus becoming a
one-stop shop for all the television entertainment needs of customers.
Partners
Subject has invested in
state-of-the-art digital infrastructure and has partnered with global leaders
in digital technology for the pay television market.
Satellite:
Subject has
leased all 12 Ku-Band transponders on ISRO’s Indian satellite, INSAT 4A, the
most advanced and high-powered KU-Band communication satellite in the region,
developed keeping in mind local requirements. The satellite enables Subject to offer superior picture and
sound quality with a wider range of channels.
Business Support Software:
NDS: Subject has
partnered with NDS, the leading provider of technology solutions for pay
television. NDS systems has played a key role in the end-to-end system
architecture and launching the nationwide digital service. The NDS Video Guard
conditional access solution provides superior broadcast security, and enables
Subject to offer multiple programming and pricing packages.
Siebel: Subject has
selected Siebel, leaders in Customer Relationship Management (CRM) software, to
support operations across the areas of call centre and field service
operations, customer order management and product configuration.
Kenan: Comverse’s Kenan FX billing software has been selected to support
billing for all residential, institutional and commercial customers. The Kenan
software has been enhanced specifically for Subject, to support a first in industry pre-paid billing
capability which will provide customers convenient payment options.
SAP: SAP the leading Enterprise Resource Planning (ERP) application
suite, has been selected by Subject to
support the company’s materials management, sales and distribution, finance and
control and human resources requirements.
IT:
Sun Microsystems: Subject has
selected Sun Microsystems to provide world-class technology infrastructure,
which helps the company to deliver high-level service standards for its
Satellite Television service. The servers ensure maximum up-time, fault
recovery and load management. Sun has also provided Subject with installation,
engineering expertise and support.
Digicomp
:
Subject has partnered
with Thomson and Humax, world leaders in digital broadcast technology for building
top-of-the line digicompsTM, customised specifically for the Indian markets.
The technology’s feature rich design enables Subject to deliver multiple programming, pricing packages
and interactive services to its customers.
Inception and Heritage
Incorporated in 2004, Subject is
an 80:20 Joint Venture between TATA and STAR. Subject endeavours to offer Indian viewers a world-class
television viewing experience through its Satellite Television service.
The SKY brand, owned by the UK-based British Sky Broadcasting Group, brings to Subject the reputation of more
than 20 years experience of satellite broadcasting. SKY is well known for the
innovative products and services launched by BSkyB, such as DTH broadcasting in
1989, digital satellite broadcasting in 1998, interactive television services
in 1999 and the SKY+ personal video recorder in 2001. Subject joins an international group of DTH businesses that
includes platforms as far apart as the UK and Italy in Europe, and Mexico and
Brazil in Latin America.
The Tata Group is one of India's largest and most respected business
conglomerates. It comprises 93 operating companies in seven business sectors:
information systems and communications, engineering, materials, services,
energy, consumer products and chemicals. The Tata Group has operations in more
than 40 countries across six continents and its companies export products and
services to 140 nations. The Group and its enterprises have been steadfast and
distinctive in their adherence to business ethics and their commitment to
corporate social responsibility. This is a legacy that has earned the Group the
trust of many millions of stakeholders in a measure few business houses
anywhere in the world can match.
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. 44.30 |
|
UK
Pound |
1 |
Rs. 85.83 |
|
Euro |
1 |
Rs. 57.92 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
- |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
- |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
- |
|
--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 |
|
35 |
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
|
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 |