MIRA
INFORM REPORT
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Report Date : |
26.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
ZAPAK DIGITAL ENTERTAINMENT LIMITED |
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Formerly Known As : |
RELIANCE COM LIMITED |
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Registered Office : |
3rd Floor, Reliance Energy Centre, Santacruze East, Mumbai
– 400055, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
14.12.2005 |
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Com. Reg. No.: |
158036 |
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CIN No.: [Company
Identification No.] |
U99999MH2005PLC158036 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMR19591F |
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PAN No.: [Permanent
Account No.] |
AACDR1992A |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
The company provides online audio-visual content and email
services. |
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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Status : |
New Projects |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Anil Dhirubhai Ambani, Group (ADAG) who has huge
means. Important companies in the group are Reliance Capital, Reliance
Communication etc. Their trade relations are fair. Payments are usually correct and as
per commitments. The company has substantial accumulated losses mainly due to heavy
marketing expenditures. However, the company can be considered normal for business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
3rd Floor, Reliance Energy Centre, Santacruze East, Mumbai
– 400055, Maharashtra, India |
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E-Mail : |
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Head Office : |
Level 4, Infinity Mall, New Road, Andheri (West), Mumbai – 400053,
Maharashtra, India |
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Tel. No.: |
91-22-39816600 |
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Fax No.: |
91-22-39816601 |
DIRECTORS
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Name : |
Mr. Abhijit Banerjee |
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Designation : |
Director |
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Address : |
604, Sicily Marvel, Sector 12B, Plot No.51, Navi Mumbai – 400709,
Maharashtra, India |
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Date of Birth/Age : |
24.03.1964 |
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Date of Appointment : |
14.12.2005 |
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Email : |
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Name : |
Mr. Paresh Purshottamlal Rathod |
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Designation : |
Director |
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Address : |
204, Reliance Energy Quarters, Near Deonar Depot, Chembur, Mumbai –
400088, Maharashtra, India |
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Date of Birth/Age : |
24.06.1968 |
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Date of Appointment : |
14.12.2005 |
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Email : |
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Name : |
Mr. Ashish Sudhakar Karyekar |
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Designation : |
Director |
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Address : |
704, Bses Quarters, Chembur Rece Station, Near Deonar Depot, Chembur,
Mumbai – 400088, Maharashtra, India |
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Date of Birth/Age : |
22.05.1972 |
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Date of Appointment : |
14.12.205 |
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Email : |
KEY EXECUTIVES
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Name : |
Rohit Sharma |
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Designation : |
Chief Operating Officer |
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Name : |
Arun Mehra |
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Designation : |
Chief Marketing Officer |
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Name : |
Sudipto Majumdar |
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Designation : |
Chief Technology Officer |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 06.12.2005)
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Names of Shareholders |
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No. of Shares |
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Abhijit Banerjee |
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10 |
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Gaurang Shah |
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10 |
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Paresh Rathod |
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10 |
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Ashish Karyekar |
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10 |
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Reliance Energy Management Services Private Limited |
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16650 |
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Reliance Energy Global Private Limited |
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16650 |
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Power Surfer Interactive India Private Limited |
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16660 |
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Total |
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50000 |
(As on 31.03.2007)
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Category |
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Percentage |
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Bodies Corporate (Not mentioned above) |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
The company provides online audio-visual content and email
services. |
GENERAL
INFORMATION
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Bankers : |
Not Available |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
S V Doshi and Company Chartered Accountant |
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Address : |
602 – E Neelkanth, 98 Marine Drive, Mumbai – 400002, Maharashtra,
India |
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Holding Company : |
Power Surfer Interactive India
Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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50000 |
Equity Shares |
Rs.10/- each |
Rs.0.500 Million |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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50000 |
Equity Shares |
Rs.10/- each |
Rs.0.500 Million |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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0.500 |
0.500 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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0.000 |
0.000 |
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4] (Accumulated Losses) |
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(155.541) |
(0.030) |
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NETWORTH |
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(155.041) |
0.470 |
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LOAN FUNDS |
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1] Secured Loans |
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0.000 |
0.000 |
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2] Unsecured Loans |
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185.424 |
0.000 |
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TOTAL BORROWING |
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185.424 |
0.000 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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30.383 |
0.470 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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38.586 |
0.000 |
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Capital work-in-progress |
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3.202 |
0.000 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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0.000
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0.000 |
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Sundry Debtors |
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1.868
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0.000 |
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Cash & Bank Balances |
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27.721
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0.481 |
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Other Current Assets |
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0.000
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0.000 |
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Loans & Advances |
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14.763
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0.000 |
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Total
Current Assets |
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44.352
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0.481 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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55.757
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0.011 |
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Provisions |
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0.000
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0.000 |
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Total
Current Liabilities |
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55.757
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0.011 |
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Net Current Assets |
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(11.405)
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0.470 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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30.383 |
0.470 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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Sales Turnover |
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2.292 |
0.000 |
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Other Income |
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0.000 |
0.000 |
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Total Income |
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2.292 |
0.000 |
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Profit/(Loss) Before Tax |
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(155.511) |
(0.030) |
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Provision for Taxation |
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0.000 |
0.000 |
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Profit/(Loss) After Tax |
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(155.511) |
(0.030) |
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Expenditures : |
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Payment to Auditors |
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0.025 |
0.011 |
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Depreciation & Amortization |
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5.237 |
0.019 |
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Other Expenditure |
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152.541 |
0.000 |
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Total Expenditure |
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157.803 |
0.030 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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PAT / Total Income |
(%) |
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(6784.95) |
0.00 |
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Net Profit Margin (PBT/Sales) |
(%) |
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(6784.95) |
0.00 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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(187.50) |
(6.24) |
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Return on Investment (ROI) (PBT/Networth) |
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1.00 |
0.06 |
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Debt Equity Ratio (Total Liability/Networth) |
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(1.56) |
0.02 |
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Current Ratio (Current Asset/Current Liability) |
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0.80 |
43.73 |
LOCAL AGENCY
FURTHER INFORMATION
Website Details:
Company Overview
Subject is full-service software gaming Entertainment
Company. This full-service Gaming Entertainment Company is a part of the
Reliance ADA Group. Subject intends a complete roll out of its services in 3
phases. The first phase of the portfolio would witness the launch of Zapak.com
- India’s largest gaming portal. The second phase would see the roll out of
Zapak Zones - exclusive gaming cafes across the country and in the third phase
Subject would introduce Massively Multiplayer Online Games (MMOG) - the rage in
online gaming worldwide. Company would invest over $100 million over the next 3
years in this venture.
Subject operates as an online gaming company in India. It
offers various games, including action, sports, racing, cricket, strategy,
arcade, single player, multi player, downloadable, and cash games. The company
provides online audio-visual content and email services. It also operates a
broadband enabled gaming café chain, as well as offers gaming cards for online
game purchase. Subject provides games for women and kids. The company is based
in Mumbai, India. Subject operates as a subsidiary of Anil Dhirubhai Ambani
Enterprises Group.
Management
Rohit Sharma, Chief Operating Officer
Rohit started his career as a managing partner with Acumen
exports (exporter of leather goods). He took a study break in 1997 and did his
masters from Lancaster University, UK. He returned to India and joined Cyber
Media India Limited. Rohit has worked in Indiatimes for six years. He was also
the National Sales Head for Advertising Sales and Events.
Arun Mehra, Chief Marketing Officer
An Entertainment media Industry veteran with 13 years
experience in the industry. After starting his career with O&M Arun moved
to MTV where he played a vital role in building Brand MTV and leveraged its
equity for consumer & trade initiatives.
Sudipto Majumdar, Chief Technology Officer
A computer engineer from IIT Mumbai and finance major from
IIM Bangalore, Sudipto started his career as an entrepreneur and set up a
software development company called Futuresoft Technologies. He was the hand
behind unique Election ID card system adopted by the Election Commission of
India for making all election ID cards.
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.43.58 |
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UK Pound |
1 |
Rs.80.31 |
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Euro |
1 |
Rs.64.16 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
4 |
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OPERATING SCALE |
1~10 |
2 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
2 |
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--PROFITABILIRY |
1~10 |
- |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
- |
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--CREDIT LINES |
1~10 |
4 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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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 |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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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
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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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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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