MIRA
INFORM REPORT
|
Report Date : |
31.12.2008 |
IDENTIFICATION DETAILS
|
Name : |
SUN DIRECT TV PRIVATE LIMITED |
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Registered Office : |
4/1017, 3RD Cross Street, 9th Link, Nehru Nagar,
Kotivakkam, Chennai – 600 041, Tamil Nadu. |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
16.02.2005 |
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Com. Reg. No.: |
18 – 55398 |
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CIN No.: [Company
Identification No.] |
U92132TN2005PTC055398 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHES23677D |
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PAN No.: [Permanent
Account No.] |
AAICS7671L |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Provider of Direct – To – Home (DTH) Service. |
RATING & COMMENTS
|
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 25877255 |
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Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
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Comments : |
Subject is a new entrant in the highly competitive Direct-To-Home
(DTH) market. It is a part of Sun TV Group. The company has incurred initial
losses and has good amount of accumulated losses. Trade relations are fair.
However, no complaints have been heard. The company can be considered for small to mediocre business dealings,
initially. |
LOCATIONS
|
Registered Office : |
4/1017, 3RD Cross Street, 9th Link, Nehru Nagar,
Kotivakkam, Chennai – 600 041, Tamil Nadu, |
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Tel. No.: |
91-44-43411434 |
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Fax No.: |
91-44-43411010 |
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E-Mail : |
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Website: |
DIRECTORS
|
Name : |
Mr. Kalanithi Maran |
|
Designation : |
Director |
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Address : |
4, |
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Date of Birth/Age : |
24.07.1965 |
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Date of Appointment : |
16.02.2005 |
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Name : |
Mrs. Kavery Kalanithi |
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Designation : |
Director |
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Address : |
4, |
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Date of Birth/Age : |
06.10.1969 |
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Date of Appointment : |
16.02.2005 |
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Name : |
Mr. Anil Kumar Yatrapati |
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Designation : |
Director |
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Address : |
Flat No.4G, Vasanth Apartments, No.41, |
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Date of Birth/Age : |
01.01.1966 |
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Date of Appointment : |
04.12.2007 |
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Name : |
Mr. Shiva Kumar Sembian Chezhian |
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Designation : |
Director |
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Address : |
Door No. B 7, Parsan Apartments, |
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Date of Birth/Age : |
08.04.1968 |
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Date of Appointment : |
04.12.2007 |
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Name : |
Mr. Sampath Kumaran Vitthal |
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Designation : |
Director |
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Address : |
D – 2, Lyods Colony, |
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Date of Birth/Age : |
06.11.1974 |
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Date of Appointment : |
04.12.2007 |
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Name: |
Mrs. Ravilla Manu Ranganathan Ramesh |
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Designation: |
Director |
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Address: |
12, GB – 3, Tharangini Apartments, 3rd |
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Date of Birth/Age : |
04.12.1965 |
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Date of Appointment : |
15.11.2008 |
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Din No: |
00811887 |
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Name: |
Mr. Kannappan Shanmugam |
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Designation: |
Director |
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Address: |
No.12, |
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Date of Birth/Age : |
28.03.1965 |
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Date of Appointment : |
15.11.2008 |
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Din No: |
00551319 |
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Name : |
Mr. Mohamed Israth |
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Designation : |
Director |
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Address : |
17, |
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Date of Birth/Age : |
11.04.1973 |
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Date of Appointment : |
15.11.2008 |
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Din No: |
00975387 |
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Name : |
Mr. Raghvendra Madhav |
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Designation : |
Director |
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Address : |
A-154, New Friends Colony, |
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Date of Birth/Age : |
26.05.1961 |
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Date of Appointment : |
15.11.2008 |
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Din No: |
00061101 |
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Name : |
Mr. Augustus Ralph Marshall |
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Designation : |
Director |
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Address : |
No.2, Lorong Lembah Tunku, Bukit Tunku, |
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Date of Birth/Age : |
01.10.1951 |
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Date of Appointment : |
15.11.2008 |
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Din No: |
00281802 |
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Name : |
Mr. Grant Scott Ferguson |
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Designation : |
Director |
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Address : |
4-2 East Wing, Wedgewood Residences, 11 Jalan Duta Kiara Bukit Kiara, |
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Date of Birth/Age : |
14.04.1962 |
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Date of Appointment : |
15.11.2008 |
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Din No: |
01652387 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON (26.09.2008)
|
Names of Shareholders |
No. of Shares |
|
Mr. Kalanithi Maran |
58816842 |
|
Mrs. Kavery Kalanithi |
202591343 |
|
South Asia Entertainment Holdings Limited, Mauritios |
65352046 |
|
Equity Share
Breakup |
|
Percentage of
Holding |
|
Category
(31.03.2008) |
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Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
20.00 |
|
Directors or relatives of directors |
|
80.00 |
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Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Provider of Direct – To – Home (DTH) Service. |
GENERAL INFORMATION
|
Bankers : |
Not Divulged |
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Banking
Relations : |
-- |
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Auditors : |
Deloitte Haskins and Sells |
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Chartered Accountant |
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Address : |
7th Floor, “ |
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Pan No: |
AACFD3771D |
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Auditors : |
K. Ramkrish and Company |
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Chartered Accountant |
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Address : |
No.19, |
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Pan No: |
AADFK4539R |
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Associates/Subsidiaries : |
|
CAPITAL STRUCTURE
AS
ON 26.09.2008
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
380000000 |
Equity Shares |
Rs. 10/- Each |
Rs. 3800.000 Millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
326760231 |
Equity Shares |
Rs. 10/- Each |
Rs. 3267.602 Millions |
As on 31.03.2008
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
380000000 |
Equity Shares |
Rs. 10/- Each |
Rs.3800.000 Millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
198387097 |
Equity Shares |
Rs. 10/- Each |
Rs.1983.871 Millions |
Notes:-
·
(During the year the Company has Issued 39677420
Equity Shares of Rs.10. each at a premium of Rs.69.57 per share to
· Entertainment Holdings Limited and 8709677 Equity Shares of Rs.10/-each at par to Mr. Kalanithi Maran on 10th December 2007)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1983.871 |
1500.000 |
1500.000 |
|
|
2] Share Application Money |
1170.030 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2760.358 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
(738.808) |
(6.132) |
(6.598) |
|
|
NETWORTH |
5175.451 |
1493.868 |
1493.402 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5175.451 |
1493.868 |
1493.402 |
|
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|
|
|
|
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APPLICATION OF FUNDS |
|
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|
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|
|
|
|
|
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FIXED ASSETS [Net Block] |
1786.278 |
0.000 |
0.000 |
|
|
Capital work-in-progress |
399.080 |
168.551 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
132.151
|
0.000 |
0.000 |
|
|
Sundry Debtors |
0.000
|
0.000 |
0.000 |
|
|
Cash & Bank Balances |
3153.418
|
1321.643 |
3.527 |
|
|
Other Current Assets |
23.199
|
1.071 |
0.000 |
|
|
Loans & Advances |
452.107
|
2.712 |
1492.276 |
|
Total
Current Assets |
3760.875
|
1325.426 |
1495.803 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
769.516
|
0.112 |
2.401 |
|
|
Provisions |
1.266
|
0.000 |
0.000 |
|
Total
Current Liabilities |
770.782
|
0.112 |
2.401 |
|
|
Net Current Assets |
2990.093
|
1325.314 |
1493.402 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5175.451 |
1493.868 |
1493.402 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
506.691 |
0.000 |
0.000 |
|
|
Other Income |
104.947 |
1.068 |
0.096 |
|
|
Total Income |
611.638 |
1.068 |
0.096 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
(731.676) |
0.870 |
(0.396) |
|
|
Provision for Taxation |
1.000 |
0.404 |
0.000 |
|
|
Profit/(Loss) After Tax |
(732.676) |
0.466 |
(0.396) |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
0.072 |
NA |
NA |
|
Total Earnings |
0.072 |
NA |
NA |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
20.659 |
NA |
NA |
|
|
Stores & Spares |
534.347 |
NA |
NA |
|
|
Capital Goods |
1443.865 |
NA |
NA |
|
|
Others |
1998.871 |
NA |
NA |
|
Total Imports |
3997.742 |
NA |
NA |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
24.972 |
0.000 |
0.000 |
|
|
Employee Costs |
48.418 |
0.000 |
0.000 |
|
|
Finance Charges |
0.394 |
0.000 |
0.001 |
|
|
Depreciation & Amortization |
86.512 |
0.000 |
0.000 |
|
|
Other Expenditure |
1183.016 |
0.198 |
0.492 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
[119.79]
|
43.63 |
[412.500] |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
[144.40]
|
0.00 |
0.00 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
[12.30]
|
0.06 |
[0.03] |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
[0.14]
|
0.00 |
0.00 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.15
|
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.88
|
11834.16 |
622.99 |
LOCAL AGENCY FURTHER INFORMATION
OPERATING RESULTS:
During the year Company commenced operation and earned a total revenue of Rs.611.600 Millions. The income from Sales and Services is Rs.506.700 Millions, other income includes interest on Fixed Deposits. As the company commenced operation in this year only, the operating expenses are not comparable with the previous year expenses. Depreciation costs are due to additions during the year. The operating expenses during the year is double the total revenue hence the Company suffered loss to the extent of Rs.644.800 Millions before Depreciation, Interest and Tax The Company made a provision of Rs.010.000 Millions towards Fringe Benefit Tax.
FIXED ASSETS:
- Broadcasting Equipments
- Customer Premises Equipments – Set Top Boxes
- Electrical Installation
- Computers
- Office Equipments
- Furniture and Fixtures
- Vehicles
- Leasehold Improvements
AS PER WEBSITE:
PROFILE:
Subject uses the latest MPEG-4 based technology to
increase broadcast capacity. They confirms to provide next-generation services
in fast-growing and emerging markets quickly and efficiently. Subject will be
supported by Irdeto's conditional access solution to manage content and
revenues in the satellite broadcasting venture. Subject
selected Oracle based on its convergent
multi-service capabilities and proven real-time scalability allowing it to
consolidate billing operations, enable powerful new service offerings and
improve visibility into customer information across services.
PRESS RELEASE
SUBJECT DTH
CROSSES 1 MILLION SUBSCRIBERS IN 200 DAYS:
Sun Direct TV Pvt. Ltd one of the leading DTH service provider announces the achievement of 1 Million DTH subscribers in 200 days.
The one million subscriber base comes from only 4 southern
states i.e. Tamil Nadu, Karnataka, Kerala, Andhra Pradesh and the union
On the eve of this 1 Million subscriber achievement , Sun Direct has launched 14 add-on packages ranging from as low as Rs. 10/- to Rs. 140/- "Packages to suit every pocket" in a "Pay for what you watch" concept for the very first time in Indian DTH scenario.
Among the other first's are:
Sun Direct DTH launched 4 regional basic tiers consisting of over 100 plus channels specific to each southern state (Tamil basic, Telugu Basic, Kannada Basic and Kerala basic) at the rate of Rs. 75/- per month with the consumer premises equipment (set top box, Dish, LNB etc.. ) being given free for viewing.
Sun Direct DTH is also the first DTH platform in
Sun Direct DTH provides in addition to regular audio/video outputs, Digital Optical audio outputs for crystal clear audio quality and component video output to get the best picture quality for plasma, LCD and other High end TV's.
Sun Direct DTH is the only existing DTH platform to provide
High Definition TV (HDTV) in
DTH
SERVICES LAUNCHED IN MUMBAI AND IN THE OTHER STATES OF THE COUNTRY:
Highlights on the launch of DTH services:
Free dish and set-top
boxes with every connections
Basic Pack at Rs.499
Choose one Regional Pack
free with the Basic Pack
36 add on channel
packages starting from Rs.6 – Rs.195
130+ channels at Rs.999
on 10 month subscription
Offering MPEG4 Technology
and soon to launch HD
December 8, 2008, Mumbai Subject a leading
direct-to-home (DTH) service provider has announced the Pan India launch of its
services in Mumbai
Subject is the fastest growing DTH service provider
having garnered over 1.9 million subscribers since its launch in December 2007
and aims to become one of the leading player in the DTH space by the end of
this fiscal. They adds a substantial number of subscribers every month and the
company is confident of gaining further momentum with its launch of second
phase in other locations of the country.
Speaking on the occasion Mr Tony D’Silva, COO of
Company said “Our vision is to make SUN DTH the most preferred DTH platform in
the country. Their services and bouquet of packages are value for money as they
have custom designed packages for every state and region. They spent
considerable amount of time since they launch last December understanding the
customer appetite for entertainment and how best they can cater to their
entertainment requirements and putting their distribution and post sales
services in place. “
Subject DTH was the first one to move into the MPEG4
league and soon after the PAN India launch HD services will be launched.
Another first from SUN DTH is the launch of exclusive comedy channels for its
subscribers.
They offers a
basic package of over 130 + channels for a reasonable introductory offer of
Rs.499( 5 months subscription) along with free Dish and Set top box and Rs 1000
towards installation charges . In addition to the basic package the customer
can choose a regional pack of his choice for free. In addition to the
introductory they offers the biggest
spread of 36 add on packages ranging from Rs 6 to Rs 195 per month of the most
viewed channels. Their packages are
customized in such a way that the subscriber pays only for what they see.
Unique bundling of channels and effective price
packaging plans has established Company as the de facto leader in the four
southern states. In the second phase during September 2008 Company launched its
services in Gujarat, Rajasthan, HP, Punjab, Haryana and
Subject is a
80:20 joint venture between the Maran family and the Astro Group of
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 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.48.50 |
|
|
1 |
Rs.70.02 |
|
Euro |
1 |
Rs.67.95 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
31 |
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. |
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 |
|