MIRA
INFORM REPORT
|
Report Date : |
05.07.2007 |
IDENTIFICATION DETAILS
|
Name : |
THE HINDUSTAN
TIMES LIMITED |
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Registered Office : |
Hindustan Times
House, 18-20, Kasturba Gandhi Marg, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
08.02.1927 |
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Com. Reg. No.: |
55-155 |
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CIN No.: [Company
Identification No.] |
U74899DL1927PLC000155 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELT04128F |
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Legal Form : |
Closely Held
Public Limited Liability Company |
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Line of Business : |
Publisher of |
RATING & COMMENTS
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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 18000000 |
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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 well
established and reputed news paper publisher having fine track. Available information
indicates high financial responsibility of the company. Trade relation are
fair. Fundamentals are strong and healthy. The company can
be considered good for normal business dealings. |
LOCATIONS
|
Registered Office : |
Hindustan Times
House, 18-20, Kasturba Gandhi Marg, New Delhi-110 001, |
|
Tel. No.: |
91-11-23704617 /
4523 / 4673 / 55561400 |
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Fax No.: |
91-11-23361234 /
23321189 / 55561270 |
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E-Mail : |
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Website : |
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Factory 1 : |
412-413 Udhyog Vihar, Phase- IV, Gurgaon, |
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Factory 2 : |
Searchlight Publishing
House Limited, 7 Kokar Industrial Area, |
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Factory 3 : |
Surya Enterprises
F – 14 Govindpura Industrial Area, |
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Factory 4 : |
C 164-165 Phase VIII
B, Industrial Area Focal Point, Mohali, |
DIRECTORS
|
Name : |
Dr. |
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Designation : |
Director |
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Address : |
‘Birla House’ 7, Tees January Marg, |
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Date of Birth/Age : |
12.10.1918 |
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Date of Appointment : |
03.08.1957 |
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Name : |
Mr. Shobhana Bhartia |
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Designation : |
Director |
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Address : |
46 Friends Colony [East], |
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Date of Birth/Age : |
04.01.1957 |
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Date of Appointment : |
07.04.1986 |
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Name : |
Mr. Deoki Nandan
Patodia |
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Designation : |
Director |
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Address : |
45 Akash Neem Marg, DLF Qutab Enclave Phase – II, Gurgaon – 122001, |
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Date of Birth/Age : |
14.01.1928 |
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Date of Appointment : |
01.04.1980 |
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Name : |
Mr. Murli Dhar Dalmia |
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Designation : |
Director |
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Address : |
H 23, |
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Date of Birth/Age : |
04.05.1908 |
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Date of Appointment : |
24.07.1984 |
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Name : |
Mr. Virendra Kumar Charoria |
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Designation : |
Director |
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Address : |
C-305, Agrasen Apartments, 66, I. P. Extn, Patparganj, |
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Date of Birth/Age : |
09.11.1952 |
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Date of Appointment : |
01.06.2007 |
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Other Directorship : |
The Birla Cotton Spinning and Weaving Mills Limited L95000DL1920PLC99621 Usha Flowell Limited L27109DL1981PLC099622 Shradhanali Investment and Trading Company Limited U74999DL1999PLC099623 Britex India Limited L65910DL1983PLC099625 Paxton Trexim Private Limited U57909DL1993PTC107368 Paxton Trexim Private Limited U57909DL1993PTC107368 Pramanand Commercial Private Limited U51109WB1996PTC077373 Searchlight Publishing House Limited U00289BR1918PLC000013 |
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Name : |
Mr. Suraj Mal Agarwal |
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Designation : |
Director |
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Address : |
C – 246, Defence Colony, |
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Date of Birth/Age : |
15.07.1920 |
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Date of Appointment : |
22.12.1999 |
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Name : |
Mr. Priyavrat Bhartia |
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Designation : |
Director |
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Address : |
46 Friends Colony [East], |
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Date of Birth/Age : |
04.10.1976 |
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Date of Appointment : |
22.10.1998 |
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Name : |
Ms. Manisha Gupta |
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Designation : |
Director |
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Address : |
466 Laxmi Bai Nagar, |
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Date of Birth/Age : |
26.09.1978 |
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Date of Appointment : |
10.03.2004 |
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Date of Ceasing : |
19.08.2005 |
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Name : |
Mr. Surender Varma |
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Designation : |
Director |
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Address : |
713, Anand Kunj, Vikas Puri, |
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Date of Birth/Age : |
23.06.1970 |
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Date of Appointment : |
19.08.2005 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Britex India Limited |
|
1351680 |
|
Pilani Investment and Industries Corporation Limited |
|
192000 |
|
The Birla Cotton Spg. and Wvg. Mills Limited |
|
532800 |
|
Udit India Limited |
|
865600 |
|
Usha Flowell Limited |
|
700800 |
|
Xpro India Limited |
|
46480 |
|
Vivek Sheel Aggarwal |
|
10400 |
|
Ravinder Kumar Padamsi |
|
10080 |
|
Birla Educational Institution |
|
24200 |
|
Prakash Educational Society |
|
24000 |
|
Asit Koticha |
|
21900 |
|
Radhakishan S. Damani |
|
19520 |
|
S. S. Jajodia |
|
339000 |
|
|
|
200000 |
|
|
|
200000 |
|
Sarvajanik Medical Centre |
|
100800 |
|
Sushila Birla Memorial Institute |
|
57900 |
|
|
|
|
|
Equity Share
Breakup |
|
|
|
Category |
|
Percentage of
Holding |
|
Bodies corporate |
|
69.27 |
|
Directors of relatives of directors |
|
0.03 |
|
Other top fifty shareholders |
|
26.55 |
|
Others |
|
4.15 |
|
Total
|
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Publisher of |
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|
|
|
Products : |
v
Advertising
Services v
Newspapers
& Periodicals v
Waste
Paper v
Investment
Activity v
News
Gathering v
Rental
From Property |
GENERAL INFORMATION
|
No. of Employees : |
2600 |
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Bankers : |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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|
Name : |
S.R. Batliboi and
Company Chartered
Accountants |
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Address : |
B-26, Qutub
Institutional Area, |
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Associates : |
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Subsidiaries : |
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Joint Venture
: |
TVM Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
29950000 |
Equity Shares |
Rs. 10/- each |
Rs. 299.500 Millions |
|
5000 |
Preference Shares |
Rs. 100/-each |
Rs. 0.500 Million |
|
|
Total |
|
Rs. 300.000
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5318880 |
Equity shares |
Rs. 10/-each |
Rs. 53.189
millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5316160 |
Equity shares |
Rs. 10/-each |
Rs. 53.162
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
53.162 |
53.162 |
53.162 |
|
|
2] Reserves &
Surplus |
4452.487 |
4516.208 |
4948.716 |
|
NETWORTH
|
4505.649 |
4569.370 |
5001.878 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
380.000 |
395.000 |
250.000 |
|
|
2] Unsecured
Loans |
0.000 |
16.484 |
106.878 |
|
TOTAL BORROWING
|
380.000 |
411.484 |
356.878 |
|
|
DEFERRED TAX
LIABILITIES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
4885.649 |
4980.854 |
5358.756 |
|
|
|
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|
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block]
|
1835.522 |
1996.304 |
2516.266 |
|
Capital work-in-progress
|
3.972 |
3.972 |
6.895 |
|
|
|
|
|
|
|
INVESTMENT
|
2724.327 |
2670.584 |
2414.204 |
|
DEFERREX TAX ASSETS
|
82.500 |
82.500 |
87.121 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS &
ADVANCES
|
|
|
|
|
|
|
Inventories
|
0.000
|
0.000
|
10.115
|
|
|
Sundry Debtors
|
5.417
|
18.016
|
99.162
|
|
|
Cash & Bank Balances
|
181.472
|
254.910
|
153.303
|
|
|
Other Current Assets
|
6.165
|
2.910
|
7.928
|
|
|
Loans & Advances
|
536.016
|
267.221
|
329.485
|
Total Current Assets
|
729.070
|
543.057
|
599.993 |
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
163.133
|
179.347
|
131.611
|
|
|
Provisions
|
326.609
|
136.216
|
134.112
|
|
|
489.742
|
315.563
|
265.723 |
|
Net Current Assets
|
239.328
|
227.494
|
334.270 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
4885.649 |
4980.854 |
5358.756 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
146.398 |
138.406 |
1487.123 |
|
|
Other Income |
137.704 |
96.484 |
12.882 |
|
|
Total Income |
284.102 |
234.89 |
1500.005 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
86.365 |
41.554 |
13.438 |
|
|
Provision for Taxation |
23.152 |
4.621 |
[102.623] |
|
|
Profit/(Loss) After Tax |
109.517 |
46.175 |
116.061 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
NA |
NA |
0.068 |
|
|
Advertisements |
NA |
NA |
2.548 |
|
|
Other Earnings |
NA |
NA |
0.031 |
|
Total Earnings |
NA |
NA |
2.647 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
NA |
NA |
433.560 |
|
|
Stores & Spares |
NA |
NA |
1.364 |
|
|
Capital Goods |
NA |
NA |
0.283 |
|
Total Imports |
NA |
NA |
435.207 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Materials Consumed |
|
|
534.364 |
|
|
Salaries, Wages, Bonus, etc. |
10.673 |
14.090 |
213.516 |
|
|
Payment to Auditors |
0.250 |
0.404 |
0.000 |
|
|
Interest |
63.258 |
39.117 |
60.738 |
|
|
Insurance Expenses |
1.084 |
0.343 |
0.000 |
|
|
Power & Fuel |
18.507 |
22.421 |
0.000 |
|
|
Depreciation & Amortization |
45.545 |
11.514 |
116.708 |
|
|
Other Expenditure |
58.420 |
105.447 |
528.940 |
|
Total Expenditure |
197.737 |
193.336 |
1454.266 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
38.55
|
19.66 |
7.74 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
30.40
|
30.02 |
0.90 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.37
|
1.64 |
0.43 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.02
|
0.01 |
0.00 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.19
|
0.16 |
0.12 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.49
|
1.72 |
2.26 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
Land – Leasehold,
Buildings, Plant & Machinery, Furniture & Fittings, Vehicles, etc
Bankers Charges Report as per Registry
|
Name of the
company |
THE HINDUSTAN TIMES LIMITED |
|
Presented By |
Manisha Gupta,
Company Secretary |
|
1) Date and description
of instrument creating the change |
Loan agreement
dated 08.11.2004, with Housing development finance corporation limited |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Term loan of Rs.
1500 Millions |
|
3) Short
particular of the property charged. If the property acquired is subject to
charge, date of the acquired of the property should be given |
Pari passu chare
on the coampny’s property at HT House 18.20, K. G. Marg, |
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
Repayment : Principal amount
of the loan will be repayable in 120 monthly installments of RS. 120 monthly installments of Rs. 12.500
Millions each of month following the month in which first disbursement is
made. Interest rate :
7.5 % p.a. linked to prevailing State Bank Advance Rate less 2.75 % |
|
5) Name and
Address and description of the person entitled to the charge. |
Housing
Development Finance Corporation Limited Ramon House 169, Backbay
Reclamation |
|
6) Date and brief description of instrument
modifying the charge |
Supplementary
Loan agreement dated 06.01.2005 with Housing Development finance Corporation
Finance Corporation Limited |
|
7) Particulars of
modifications specifying the terms and conditions or the extent of operations
of the charge in which modification is made and the details of the
modification. |
Interest Rate : 7.5 % p.a. linked
to prevailing HDFC’s Retail Prime Lending Rate less 2.25 % |
|
This form is for |
Creation of
charge |
|
Corporate
identity number of the company |
U74899DL1927PLC000155 |
|
Name of the
company |
THE HINDUSTAN
TIMES LIMITED |
|
Address of the
registered office or of the principal place of business in |
Hindustan Times
House, 18-20, Kasturba Gandhi Marg, |
|
Type of charge |
Book Debts |
|
Particular of
charge holder |
State Bank of |
|
Nature of
description of the instrument creating or modifying the charge |
Agreement of
Hypothecation of Goods and Assets |
|
Date of
instrument Creating the charge |
20.12.2006 |
|
Amount secured by
the charge |
Rs. 250.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest
2.8 % below PLR Term of Repayment
: Payable on Demand Extent and Operation
of the charge Extent and
operation 100 % Other : as per
agreement |
|
Short particulars
of the property charged |
First charge by
way of assignment of rent receivables |
PRESS RELEASE :
Hindustan Times
Centrally Manages 40 Office Facilities Across
The Hindustan Times
Limited has been a major force in
Hindustan Times
Limited is using Unicenter to closely monitor the status of its entire
computing and communications environment, so that IT staff can quickly respond
to potential problems before they impact services. Unicenter is also
streamlining the complex tasks associated with distributing client software across
such a large and complex organization.
Effective
centralized management is particularly critical for Hindustan Times Limited
since the company does not have IT staff at its remote locations. This approach
significantly reduces costs since without centralized management, those
locations would each require three employees to support the company's
around-the-clock operations.
“CA offered them
both the advanced technology and the strong working partnership they needed to
meet their network and systems management challenges,” said Dinesh Chandna, CIO
at Hindustan Times Limited. “In addition to strengthening their IT operations,
CA and Unicenter are contributing directly to the health of their business by
ensuring their ability to distribute information instantly anywhere across the
organization.”
The company's
network encompasses several thousand desktops, most of which are connected to
the company's meshed leased-line wide area network (WAN). Hindustan Times Limited
re-evaluated its enterprise management strategy as part of its implementation
of both SAP R/3 and PPI, which is a specialized media software that automates
the newspaper production, organizing an end-to-end workflow. After an extensive
assessment of its evolving requirements and available enterprise management
solutions, Hindustan Times Limited chose Unicenter to replace its existing,
well-known management software.
Key factors in the
decision of Hindustan Times Limited to deploy Unicenter included its
scalability, ease of use, and unmatched range and depth of functionality, along
with the expert support that CA provided locally.
“The ability of
Hindustan Times to effectively manage such an extensive network environment
from one centralized location is a tremendous testimony to the power of
Unicenter,” said
“Thanks to
Unicenter, Hindustan Times has achieved a remarkable level of cost-efficiency
in the administration of its IT environment, while ensuring the smooth
operation of its publishing business across the country.”
About Hindustan
Times Limited
Hindustan Times,
the flagship publication of the Group, has editions from
Its New Delhi
edition continues to be the single largest English daily edition in the country
with a circulation of about 1 mn, while continuing to reign as the undisputed
leader in Delhi as the largest circulated daily at about half a million.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records 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.40.46 |
|
|
1 |
Rs.81.55 |
|
Euro |
1 |
Rs.55.09 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
72 |
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 |
|