MIRA
INFORM REPORT
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Report Date : |
06.10.2007 |
IDENTIFICATION DETAILS
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Name : |
CINERAD COMMUNICATION LIMITED |
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Registered Office : |
G – 3, Bombay Market Apartments Co-Op Society Limited, 78, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
17.09.1986 |
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Com. Reg. No.: |
040952 |
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CIN No.: [Company
Identification No.] |
U92100MH1986PLC040952 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMC10747C |
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PAN No.: [Permanent
Account No.] |
AAACC9117H |
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Legal Form : |
Closely Held Public Limited Liability Company |
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Line of Business : |
Subject is a film production company making commercials, TVCs,
Documentaries, Feature films. |
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. |
Small |
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Maximum Credit Limit : |
USD 374856 |
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Status : |
Moderate |
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Payment Behaviour : |
Sow |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having moderate track
records. Company’s profitability is under severe pressure. Payments are
reported as slow but correct. The company can be considered
normal for business dwellings at usual trade terms and conditions with slight
caution initially. |
LOCATIONS
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Registered Office : |
G – 3, Bombay Market Apartments Co-Op Society Limited, 78, |
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Tel. No.: |
91-22-4929896 / 4943700 / 4943613 |
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Fax No.: |
91-22-2046915 |
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Corporate Office : |
W – 5, First Floor, |
DIRECTORS
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Name : |
Mr. Diwakar Gandhi |
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Designation : |
Chairman |
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Name : |
Mrs. Riya Gandhi |
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Designation : |
Director |
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Name : |
Mr. Abhineet Gupta |
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Designation : |
Director |
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Name : |
Mr Ashok Kumar Bansal |
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Designation : |
Director cum Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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A. Promoter’s Holding |
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1. Promoters |
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- Indian Promoters |
1520316 |
29.24 |
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B. Non- Promoters Holding |
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2. Institutional Investors |
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A. Banks, Financial Institutions, Insurance Companies (Central / State
Govt. Institutions / Non – government institutions) |
5800 |
0.11 |
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3. Others |
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A. Private Corporate Bodies |
1233853 |
23.73 |
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B. Indian Public |
2440031 |
46.93 |
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Total |
5200000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is a film
production company making commercials, TVCs, Documentaries, Feature films. |
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Products : |
²
Production of Corporate Films ²
Production of Documentaries ²
Digital Editing Facility |
GENERAL INFORMATION
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Bankers : |
³
Axis Bank ³
Bank of |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Rastogi Narain and Company Chartered Accountants |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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5200000 |
Equity Shares |
Rs.10/- each |
Rs.52.000
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
52.000 |
52.000 |
52.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
41.714 |
46.065 |
(07.400) |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.00 |
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NETWORTH |
93.714 |
98.065 |
59.400 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
00.000 |
0.000 |
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TOTAL |
93.714 |
98.065 |
59.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
23.141 |
30.184 |
32.900 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
14.885 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
0.000
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0.200 |
02.000 |
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Sundry Debtors |
0.000
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1.700 |
11.900 |
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Cash & Bank Balances |
0.200
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12.200 |
14.200 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
1.299
|
2.865 |
13.100 |
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Total
Current Assets |
1.499
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16.965 |
41.200 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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2.600 |
18.500 |
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Provisions |
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0.258 |
00.400 |
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Total
Current Liabilities |
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2.858 |
18.900 |
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Net Current Assets |
1.136
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14.107 |
22.300 |
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MISCELLANEOUS EXPENSES |
54.552 |
53.774 |
04.200 |
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TOTAL |
93.714 |
98.065 |
59.400 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
0.136 |
0.353 |
37.300 |
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Other Income |
1.011 |
0.800 |
2.100 |
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Total Income |
1.147 |
1.153 |
39.400 |
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Profit/(Loss) Before Tax |
4.987 |
11.077 |
31.000 |
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Provision for Taxation |
(0.002) |
0.265 |
0.400 |
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Profit/(Loss) After Tax |
4.989 |
10.812 |
30.600 |
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Expenditures : |
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Manufacturing Expenses |
0.2000 |
0.600 |
21.100 |
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Loss on sale of assets |
1.777 |
0.000 |
-- |
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Administrative Expenses |
0.013 |
0.334 |
-- |
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Employees Cost |
0.100 |
2.600 |
1.500 |
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Power & Fuel |
0.100 |
0.100 |
0.100 |
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Depreciation & Amortization |
2.126 |
2.593 |
2.600 |
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Total Expenditure |
4.316 |
6.227 |
4.2 |
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QUARTERLY /
SUMMARISED RESULTS
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PARTICULARS |
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30.06.2007 1st
Quarter |
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Sales Turnover |
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0.000 |
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Other Income |
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0.600 |
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Total Income |
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0.600 |
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Total Expenditure |
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0.200 |
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Operating Profit |
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0.400 |
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Interest |
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0.000 |
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Gross Profit |
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0.400 |
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Depreciation |
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0.500 |
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Tax |
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0.000 |
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Reported PAT |
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(0.100) |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debts Equity Ratio |
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0.00
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0.00 |
0.00 |
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Long Term Debts Equity Ratio |
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0.00
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0.00 |
0.00 |
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Current Ratio |
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2.31
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2.50 |
2.78 |
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Turnover Ratios |
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Fixed Assets |
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0.70
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0.52 |
0.50 |
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Inventory |
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3.91
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1.60 |
1.57 |
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Debtors |
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2.31
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1.21 |
1.15 |
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Interest Cover Ratio |
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0.000
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38.00 |
5.50 |
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Operating Profit Margin (%) |
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10.98
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23.27 |
13.96 |
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Profit Before Interest and Tax Margin (%) |
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4.02
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13.82 |
4.15 |
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Cash Profit Margin (%) |
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12.06
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23.27 |
13.21 |
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Adjusted Net Profit Margin (%) |
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5.09
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13.82 |
3.40 |
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Return On Capital Employed (%) |
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0.00
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4.17 |
1.30 |
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Return On Net Worth (%) |
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0.00
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3.99 |
1.01 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets:
³
Premises
³
Office Equipment
³
Computers
³
Plant and Machinery
³
Air Conditioner
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Furniture and Fixtures
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\vehicles
³
Copyrights
Directors Reports:
Management Discussion and Analysis
Business Overview
Industry Structure and Development
India has experienced rapid growth in recent years
India’s GDP grew at 8.1%, 8.4% and 9.4% in fiscal 2005, 2006 and 2007
respectively in the current fiscal, industrial growth was driven by robust
performance from manufacturing, constructions, Real estate sector and services
sector.
Entertainment industry
The Indian entertainment industry has out
performed the Indian economy in last few years and is one of the fastest
growing sectors in
The Indian Media and Entertainment sector is poised
to enter a golden era. One of the largest markets in the world, the industry is
seeing strong growth and has the potential to garner US $ 200 billion by 2015.
The eighth price water house coopers global entertainment an media outlook has
ranked
International media giants are all vying for a
stake in the segment. In the last three years, US$ 88 million of foreign direct
investment (FDI) has flowed into the sector and in 2006. 13FDI proposals were
approved by the government. The sector’s growth is being propelled by a number
of factors such as the corporatisation of the film industry, a booming
television sector, a fast growing radio sector, a growing market for print
products and other technological changes.
Performance
The company has in the previous years, changes
the management as taken over by the new management. /therefore in the previous
years there is no activity on operation side.
During the year under review, the company has
a total income of Rs.1.147 millions as against Rs.1.153 millions in the
previous year. The company has made an operating profit during the year of
Rs.0.230 million as against an operating loss of Rs.6.751 millions for the
previous year. However owing to loss on sale of obsolete asset, the loss after
depreciation and taxation for the year is Rs.4.989 millions as against a loss
after depreciation and taxation of Rs.10.812 millions for the previous year.
The new management has decided to completely
restructure the operations of the company. The first step in this direction was
to discontinue all unproductive expenditure and overhead with immediate effect.
Though the period under the review with new management is less than half year
we have been successive in bringing down administrative and general expenditure
to Rs.0.090 million. This should be further down during current year. The
management has decided to keep overhead to bare minimum till a new businesses
plan with revenue streams in place
Outlook
The Indian Entertainment and Media Industry
has out performed the Indian economy and is one of the fastest growing sectors in
The current size of the industry as a whole is
estimated at US$7 billion in 2004 and is expected to grow at a CAGR of 14% to
US$ 13 billion by 2009. The filmed
entertainment and television segment dominate the industry followed by the
print, radio and the music segments.
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
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Indian Rupees |
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US Dollar |
1 |
Rs. |
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1 |
Rs. |
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Euro |
1 |
Rs. |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
2 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
- |
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--LIQUIDITY |
1~10 |
4 |
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--LEVERAGE |
1~10 |
4 |
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--RESERVES |
1~10 |
3 |
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--CREDIT LINES |
1~10 |
3 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
YES |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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32 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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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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. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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