MIRA
INFORM REPORT
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Report Date : |
06.01.2007 |
IDENTIFICATION
DETAILS
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Name : |
ZEE
NEWS LIMITED |
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Registered Office : |
135,
Continental Building, Doctor Annie Besant Road, Worli, Mumbai – 400018,
Maharashtra, India |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
27.08.1999 |
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Com. Reg. No.: |
11-121506 |
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CIN No.: [Company
Identification No.] |
U92100MH1999PLC121506 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MRTZ00098A |
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PAN No.: [Permanent
Account No.] |
AAACZ1213B |
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Legal Form : |
A
Closely Held Public Limited Liability Company |
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Line of Business : |
The
subject is engaged in the business of News Broadcasting and Distribution |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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Maximum Credit Limit : |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
---- |
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Comments : |
Subject
is a part of ZEE Group and engaged in distribution of Zee news channel. Trade
relations are fair. Company’s profitability is under severe pressure. It has
huge accumulated losses. Payments are reported as slow and delayed. As it
is a part of ZEE group, it can be considered for business dealings at usual
trade terms and conditions, with slight caution initially. |
LOCATIONS
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Registered Office : |
135,
Continental Building, Doctor Annie Besant Road, Worli, Mumbai – 400018,
Maharashtra, India |
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Tel. No.: |
91-22-66971234 |
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Fax No.: |
91-22-24955681 |
DIRECTORS
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Name : |
Mr.
Gaurav J Goel |
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Designation : |
Director |
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Address : |
B-10,
Lawrence Road, Industrial Area, New Delhi – 110035, Union Teritory, India |
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Date of Birth/Age : |
10.04.1980 |
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Date of Appointment : |
09.03.2004 |
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Name : |
Mr.
Gagan J Goel |
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Designation : |
Director |
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Address : |
B-10,
Lawrence Road, Industrial Area, New Delhi – 110035, Union Teritory, India |
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Date of Birth/Age : |
12.09.1981 |
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Date of Appointment : |
09.03.2004 |
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Name : |
Mr.
Veerendra H Gupta |
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Designation : |
Director |
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Address : |
342,
Pocket C-8, Sector 8, Rohini, Delhi – 110085, Union Teritory, India |
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Date of Birth/Age : |
18.08.1969 |
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Date of Appointment : |
09.03.2004 |
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Name : |
Mr.
Subhash Chandra |
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Designation : |
Director |
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Address : |
11
Berkeley Court, NW15NA, London, Great Britain |
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Date of Birth/Age : |
30.11.1950 |
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Date of Appointment : |
23.11.2006 |
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Other Directorship: |
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Name : |
Mrs.
Laxmi N Goenka |
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Designation : |
Director |
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Address : |
Essel
House, Mandi Road, Sultanpur, Mehrauli, New Delhi – 110030, India |
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Date of Birth/Age : |
19.02.1953 |
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Date of Appointment : |
23.11.2006 |
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Other Directorship: |
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Name : |
Mr.
Vinod Kumar Bakshi |
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Designation : |
Director |
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Address : |
102 A
Court Green, Laburnum, Sushant Lok -1, Sector 28, Gurgaon – 122001, India |
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Date of Birth/Age : |
01.09.1939 |
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Date of Appointment : |
23.11.2006 |
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Other Directorship: |
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MAJOR SHAREHOLDERS
As on 30.09.2005
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Names
of Shareholders |
No. of Shares |
Percentage of Holding |
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Charu
Trading Company Limited |
4599940 |
29.02 |
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Mr.
Manish M Babel |
10 |
0.00 |
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Mr.
Rajeev S Dak |
10 |
0.00 |
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Mr.
Riddhish D Purohit |
10 |
0.00 |
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Mr.
Ashok B Sanghvi |
10 |
0.00 |
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Mr.
Radheshyam Mundra |
10 |
0.00 |
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Mr.
Shailesh N Dholakia |
10 |
0.00 |
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Jayneer
Capital Private Limited |
6000000 |
37.85 |
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ZEE
Telefilms Private Limited |
5250000 |
33.12 |
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Total |
15850000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
The
subject is engaged in the business of News Broadcasting and Distribution. |
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Brand Names : |
ZEE
News |
GENERAL
INFORMATION
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Customers : |
End
Users |
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Banking Relations : |
---- |
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Auditor: |
MGB
and Company Chartered
Accountants Delhi |
CAPITAL STRUCTURE
As on 30.09.2005
Authorised
Capital :
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No.
of Shares |
Type |
Value |
Amount |
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2,00,00,000 |
Equity
Shares |
Rs. 10/- each |
Rs. 200.000 Millions |
Issued,
Subscribed & Paid-up Capital :
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No.
of Shares |
Type |
Value |
Amount |
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1,58,50,000 |
Equity
Shares |
Rs. 10/- each |
Rs. 158.500 Millions |
As on 31.03.2005
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
20,00,000 |
Equity
Shares |
Rs. 10/- each |
Rs. 20.000 Millions |
Issued,
Subscribed & Paid-up Capital :
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No.
of Shares |
Type |
Value |
Amount |
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10,00,700 |
Equity
Shares |
Rs. 10/- each |
Rs. 10.001 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
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SOURCES OF FUNDS |
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31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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10.000 |
10.000 |
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2] Share Application Money |
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8.500 |
---- |
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3] Reserves & Surplus |
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---- |
---- |
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4] (Accumulated Losses) |
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---- |
---- |
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NETWORTH |
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18.500 |
10.000 |
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LOAN FUNDS |
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1] Secured Loans |
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---- |
---- |
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2] Unsecured Loans |
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70.069 |
68.886 |
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TOTAL BORROWING |
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70.069 |
68.886 |
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DEFERRED TAX LIABILITIES |
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---- |
---- |
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TOTAL |
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88.569 |
78.886 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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0.021 |
0.000 |
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Capital work-in-progress |
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---- |
---- |
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INVESTMENT |
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---- |
---- |
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DEFERREX TAX ASSETS |
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---- |
---- |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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0.056 |
0.000 |
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Sundry Debtors |
|
9.887 |
0.000 |
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Cash & Bank Balances |
|
0.874 |
0.007 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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0.616 |
0.000 |
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Total Current Assets |
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11.433 |
0.007 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
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5.336 |
3.572 |
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Provisions |
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0.378 |
0.000 |
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Total Current Liabilities |
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5.714 |
3.572 |
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Net Current Assets |
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5.719 |
(3.564) |
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MISCELLANEOUS EXPENSES |
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82.829 |
82.450 |
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TOTAL |
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88.569 |
78.886 |
PROFIT
& LOSS ACCOUNT
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PARTICULARS |
|
31.03.2005 |
31.03.2004 |
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Sales Turnover [including other income] |
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11.743 |
N.A. |
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Profit/(Loss)
Before Tax |
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(0.378) |
(0.279) |
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Provision
for Taxation |
|
0.000 |
0.000 |
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Profit/(Loss)
After Tax |
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(0.378) |
(0.279) |
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Export
Value |
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N.A. |
N.A. |
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Import
Value |
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N.A. |
N.A. |
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Total
Expenditure |
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12.121 |
0.279 |
KEY
RATIOS
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PARTICULARS |
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31.03.2005 |
31.03.2006 |
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PAT / Total Income |
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(3.21) |
N.A. |
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Net
Profit Margin(PBT/Sales) |
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(3.21) |
N.A. |
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Return
on Total Assets(PBT/Total Assets} |
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(3.30) |
(3985.71) |
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Return
on Investment (ROI)(PBT/Networth) |
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|
0.02 |
0.03 |
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Debt
Equity Ratio(Total Liability/Networth) |
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4.09 |
7.24 |
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Current
Ratio(Current Asset/Current Liability) |
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2.00 |
(0.00) |
LOCAL AGENCY
FURTHER INFORMATION
Haqeeqat
Jaisi Khabar Waisi' - Truth in context to reality, - these words have been
the cornerstone in Zee News's quest to bring out the truth, a belief that has
been the guiding force in the dedication and integrity of Zee News in reporting
unbiased News. As a socially responsible News Channel, Zee News has dared to
walk a different path to bring the truth out even it means staying away from
hype and trivial sensationalism.
Zee News has been India's pioneer Hindi News Channel with a global footprint
spanning most of Asia, the Middle East, Europe and the Americas. Zee News has
carved a unique position in the global media space by becoming the most
preferred News Channel for Indians all over the world.
The content driven programming on Zee News covers all genres, with programming
right from hard-hitting News to Social service programming, from Crime Related
News to Glamour and Sporting News. The content driven programming at Zee News
is perhaps what differentiates it from the rest. Programs like - Kaal Kapaal
Mahakaal , Crime file and Frame 3 not only hold a unique position in the News
Television business today but have also changed the way News is watched.
Zee News has been a Pioneer and a thought leader in the field of investigative
journalism, with programming that go deeper and far beyond the usual News and
current affairs programmes. Zee News' continuous search for truth has helped
open the lid on many hidden truths besides winning acclaims and awards for Zee
News. These include the revelation about synthetic milk made from urea, shampoo
etc on The Inside Story, which won Zee News an Award at the
New York Festivals a first ever for India.
Besides the New York Awards, Zee News has been consistently
winning awards for its programming and marketing activities, including awards
at the EMMVIES 2004, Indian Telly Awards and The Indian Marketing
Awards.
News at Zee News goes way beyond the usual headlines with a slew of News
Bulletins, which are unique to the Channel. Zee News is the only News Channel
to have a News Top 10, the most distinct news capsule which
packs in 70 nuggets from all spheres in 30 minutes everyday. Besides this Zee
News is the only News Channel to have bulletins like Hindustan Hamara –
A Pan India bulletin covering News from all over India; Pehal –
A programme that recognises social service; Prime Time Special-
A programme that features that day’s important events; and programmes like Bollywood
Baazigar (aired daily at 7:30 pm) and Bole Toh Bollywood(Monday
to Friday) that provide in-depth coverage of the Hindi cinema world. Zee News
has taken News reporting a step beyond usual television to cover the much
hidden and scary life of the Aghori saints, Tantriks and other such hidden
mysticism and by unleashing a program that shows this scary truth with
'Kaal Kapaal Mahakaal’.
Besides these bulletins it is the people oriented stories on Zee News that has
made it a Channel with a strong sense of social contribution, whether it is
sourcing funds for kidney transplants, providing a platform to resolve social
issues or easing tensions between India and Pakistan through initiatives like
inviting Javed Miandad to India.
Zee News has
the widest network among Indian News Channels, which stretches out to more than
60 countries worldwide. With state of the art advanced automation system,
advanced graphics station. Largest nationwide network of reporters and stingers
connected through advanced communication links has made Zee News the first to
break stories. This is backed by quality development with balanced viewpoints
and insightful analyses. Zee News is not only financially robust but also
provides excellent working conditions providing its employees a challenging
field for both personal and professional growth.
Zee News has consistently maintained a steady position in spite of being the
only pay channel in a very crowded market. It is this unending quest to provide
the best of News Programming backed with unbiased editorial that makes Zee News
the last word in News.
Operations and Future Outlook:
During
the year under review, your company has successfully launched its first
business channel and India’s first Hindi Business channel viz. “Zee Business”.
The object of the channel is to provide valuable information and guidelines to
its viewers on various subjects like jobs, careers, education, health, housing,
rural development, travel, leisure, lifestyles, clothing’s, automobiles, FMCG,
consumer durables, agriculture, infrastructure development, technological
changes, finances, stock markets, saving instruments, loans etc. The channel
has been well accepted by the viewers and received splendid response since
launching. Your company has entered into an agreement with ZEE Telefilms
Limited for assigning exclusive rights for a period of one year for Air Time
sale and distribution function of its business channel.
During
the year under review, your company has entered into a Memorandum of
Understanding with ZEE Telefims Limited for acquiring its news and current
affairs business with all rights, assets, liabilities and employees.
Pending
transfer of the news business from ZEE Telefims Limited your company has
applied to the Ministry of Information and Broadcasting for obtaining its
permission to commence unlinking of news and current affairs television
channels from India. The application is under consideration by the Ministry and
your company expects to get the required approval very soon.
Fixed
Assets (At Cost)
- Office Equipment
- Furniture and Fixture
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 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
--- |
|
--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 |
|
28 |
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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|