MIRA
INFORM REPORT
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Report Date : |
07.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
CATVISION PRODUCTS LIMITED |
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Registered Office : |
1515, 1st Floor, Bhisham Pitamah Marg, Kotla Mubarakpur, Near
South Extension, New Delhi – 110003, |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
28.06.1985 |
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Com. Reg. No.: |
021374 |
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CIN No.: [Company
Identification No.] |
L92111DL1985PLC021374 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MRTC00595A |
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Legal Form : |
Public limited liability company.
The company's shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer of Cable and Satellite Television Market. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 296616 |
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Status : |
Satisfactory |
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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 company having satisfactory track.
Directors are reported as experienced and respectable businessmen. Trade
relations are fair. Business ia active. Payments are reported as usually
correct and as per commitments. The company can be considered normal for business dealings at usual trade
terms and conditions. |
LOCATIONS
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Registered Office : |
1515, 1st Floor, Bhisham Pitamah Marg, Kotla Mubarakpur,
Near South Extension, New Delhi – 110003, India |
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Email: |
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Website: |
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Head Office : |
E-14 and 15, Sector – 8, Noida – 201301, Uttar Pradesh, India |
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Tel. No.: |
91-120-3914100/3914101 |
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Fax No.: |
91-120-3914125 |
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E-Mail : |
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Website: |
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Corporate Office 2 : |
P. O. Box No. :261035, Dubai, United Arab Emirates |
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Tel. No.: |
91-971-4-8873616 |
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Fax No.: |
91-971-4-8873615 |
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E-Mail : |
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Website: |
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Plant : |
F-87, UPSIDC Industrial Area, Selaqui, Dehra Dun – 248001,
Uttaranchal, India |
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Tel. No.: |
91-135-2699054/55 |
DIRECTORS
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Name : |
Mr. Raman Rajiv Misra |
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Designation : |
Director |
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Name : |
Mr. Dr. Sunil Anand |
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Designation : |
Director |
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Date of Birth/Age: |
52 years |
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Qualification : |
MBBS |
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Experience : |
Vast experience in dealing in medical equipments. |
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Name : |
Mr. Sudhir Damodaran |
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Designation : |
Executive Director |
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Name : |
Mr. S. A. Abbas |
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Designation : |
Managing Director |
KEY EXECUTIVES
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Name : |
Mr. G. S. Butola |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters
Holding |
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Indian Promoters |
1454845 |
31.28 |
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Persons acting in concert |
3450 |
0.07 |
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Non-Promoters
Holding |
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Institutional
Investors |
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Mutual Fund and UTI |
16300 |
0.35 |
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Banks, FIs, Insurance and Institutions |
10890 |
0.23 |
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FIIs |
- |
- |
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Others |
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Private Corporate Bodies |
758732 |
16.30 |
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Indian Public |
2186973 |
46.99 |
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NRIs/OCBs |
222410 |
4.78 |
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Total |
4653600 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Cable and Satellite Television Market. |
GENERAL
INFORMATION
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No. of Employees : |
110 |
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Bankers : |
State Bank of Hyderabad, Scope Complex, Lodhi Road, New Delhi - 110003 |
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Facilities : |
Notes: ·
Working
Capital Loans: The company has availed working capital facilities from
the State Bank of Hyderabad, Scope Complex, Lodhi Road, New Delhi. These working capital facilities are secured by first
legal mortgaged on land , building and plant and machinery situated'at Noida and Dehradun and hypothecation of Stock, Book Debts and
personal guarantees of promoter Directors. ·
Hire
Purchase Agreements: Loan availed under Hire Purchase agreements are secured
against hypothecation of vehicles and assets financed under respective Hire Purchase Agreements. |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Gaur and Associates Chartered Accountants |
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Address : |
F-7/204, Aditya Complex, Preet Vihar Communicaty Center, Preet Vihar,
Delhi – 110092, India |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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6500000 |
Equity shares |
Rs.10/- each |
Rs.65.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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4653600 |
Equity shares |
Rs.10/- each |
Rs.46.536
Millions |
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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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46.536 |
46.536 |
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2] Share Application Money |
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0.000 |
1.200 |
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3] Reserves & Surplus |
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27.618 |
23.396 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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74.154 |
71.132 |
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LOAN FUNDS |
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1] Secured Loans |
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14.873 |
13.836 |
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2] Unsecured Loans |
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0.000 |
0.000 |
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TOTAL BORROWING |
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14.873 |
13.836 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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89.027 |
84.968 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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50.867 |
53.437 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.036 |
0.006 |
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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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22.647 |
20.963 |
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Sundry Debtors |
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26.621 |
20.224 |
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Cash & Bank Balances |
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2.484 |
2.016 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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12.763 |
10.838 |
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Total
Current Assets |
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64.515 |
54.041 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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25.251 |
20.206 |
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Provisions |
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1.140 |
2.310 |
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Total
Current Liabilities |
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26.391 |
22.516 |
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Net Current Assets |
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38.124 |
31.525 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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89.027 |
84.968 |
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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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141.969 |
115.905 |
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Other Income |
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1.649 |
0.113 |
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Total Income |
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143.618 |
116.018 |
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Profit/(Loss) Before Tax |
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3.960 |
2.323 |
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Provision for Taxation |
|
0.938 |
1.265 |
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Profit/(Loss) After Tax |
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3.022 |
1.058 |
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Export Value |
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N.A. |
N.A. |
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Import Value |
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N.A. |
N.A. |
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Expenditures : |
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Material and Conversion expenses |
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69.197 |
53.410 |
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Employees Remuneration and Benefits |
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18.527 |
15.566 |
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Administrative and Selling Expenses |
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45.228 |
38.495 |
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Financial Charges |
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2.025 |
1.619 |
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Depreciation |
|
4.680 |
4.605 |
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Other Expenditure |
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0.000 |
0.000 |
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Total Expenditure |
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139.657 |
113.695 |
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QUARTERLY RESULTS
|
PARTICULARS |
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30.06.2007 1st
Quarter |
31.09.2007 2nd
Quarter |
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Sales Turnover |
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37.500 |
36.600 |
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Other Income |
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0.00 |
0.100 |
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Total Income |
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37.500 |
36.700 |
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Total Expenditure |
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34.900 |
34.300 |
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Operating Profit |
|
2.600 |
2.400 |
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Interest |
|
0.300 |
0.400 |
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Gross Profit |
|
2.300 |
2.000 |
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Depreciation |
|
1.200 |
1.200 |
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Tax |
|
0.200 |
0.200 |
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Reported PAT |
|
0.900 |
0.600 |
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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2.10 |
0.91 |
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Net Profit Margin (PBT/Sales) |
(%) |
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2.79 |
2.00 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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3.43 |
2.16 |
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Return on Investment (ROI) (PBT/Networth) |
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0.05 |
0.03 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.55 |
0.51 |
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Current Ratio (Current Asset/Current Liability) |
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2.44 |
2.40 |
LOCAL AGENCY
FURTHER INFORMATION
Directors Reports
BUSINESS
PERFORMANCE:
The performance of the company during 2006-07 was reasonably
good. Total turnover of the company has increased by 23.80% from Rs.116.018
Millions in the last financial year to Rs.143.618 Millions in the year ended
31st March, 2007. Profit before tax of the company has increased by more than
70. 1 5% from Rs. 1.059 Millions in the previous year to Rs. 3.023 Millions in
the year ended 31st March 2007.
·
Products
The company is a major supplier of cable TV and interactive
TV products and systems targeted at cable TV networks and premium hotels. The
company has been continuously upgrading its product range by adding new
products and new features in existing products. The company manufactures
several of these products at an in-house manufacturing facility at Selaqui,
Dehra Dun (Uttrakhand), which has now become fully operational. To meet the
demand for high-tech products the company has tie-ups with some of the renowned
world class manufacturers of these products. During the year under review the
sales of these products registered a turnover of Rs. 90.677 Millions as
compared to Rs. 82.519 Millions in the previous year.
Implementation of CAS and the spread of DTH are creating new
opportunities for the company.
In the last year the company added CCTV systems to this
business segment, targeted at premium hotels and shopping malls. This. was met
with immediate success as the company landed its first order with Select City
Mall, one of the biggest and most prestigious malls coming up at Saket, New
Delhi. This was followed by successes at East India Hotels (Oberoi group) for
several of their properties.
The company clocked a turnover of Rs 12.078 Millions for
these products in the current year (the first year).
·
Services
The service segment consists of operation of a cable TV network in
Jamshedpur, operation of several satellite TV networks in hotels and
distribution of TV channels.
·
Operation
of Cable TV network at Jamshedpur:
The company operates its own cable TV network at Jamshedpur under
licence from Tata Motors. This network has been facing a serious threat from
DTH. The only solution to this problem. is implementation of CAS in Jamshedpur.
This is expected to happen in the next 2 years. Until then the company hopes to
run a break-even show. The revenue during the year was Rs 9.954 Millions as
compared to Rs 11.158 Millions in the previous year
·
Distribution
of TV channels:
In addition to selling complete cable TV systems to hotels
the company also distributes TV channels
like STAR, Zee, Sony and others to them. In this way the hotel gets to retain
its focus on managing the hotel services while Catyision ensures uninterrupted
delivery of TV channels to the guests in their rooms arid other public areas.
During the year the revenue from this business was Rs. 25.593 Millions up from
Rs. 17.316 Millions in the previous year. The hospitality industry is currently
in a bull phase and the company expects to record good growth in this business.
·
R and D
Facilities:
The company is having a Research and Development Centre comprising of a
team of highly qualified engineers who are working continuously on developing
new products for the company. Besides the new products the R and D team is
persistently working on the up-gradation of the existing products by adding new
features and improving manufacturing consistency and improvement of quality. It
is a matter of pride to the company that its in-house R and D Centre has got
the recoznization form Department of Scientific and Industrial Research,
Ministry of Science and Technology, Government of India.
·
Quality
Assurance:
The company firmly believes that the most critical component
for success in the competitive global market is the excellence in quality. To
address future challenges and to ensure continuous improvement in performance
the company has launched number of new initiatives. It has established an
independent quality control department which keeps a close and consistent watch
not only on the end products but also on all spheres of its activities. To
further strengthen this, the company is moving towards seeking ISO accredition.
To achieve this the company has formed a core team of QA, manufacturing, R and
D and external consultants.
Management
Discussion and Analysis Report:
·
Business
Overview:
The financial year 2006-07 has been a year of growth for the
company. During the year under review, the company not only stabilized its
in-house manufacturing at Dehra Dun unit but also diversified into the business
of providing Closed Circuit Television (CCTV) security solutions for malls and
hotels.
·
Industry
Structure and Development:
The Indian economy has been on a growth path and 9% annual
growth is the evidence of this. The cable TV industry cannot isolate itself from
this growth. The implementation of Conditional Access System (CAS) in specific
areas and Direct to Home (DTK) is completely changing the face of this
industry. The total number of TV owning households in India is estimated at 117
million, out of which only 68 million households are having cable connections.
Television households are estimated to grow to 165 million in 2011 resulting an
annual compounded growth rate of6.5%p.a.The momentum of this growth rate is a
good sign for the cable TV industry.
·
Strength
and opportunities:
Subject is one of the pioneers in the cable TV industry and
is having a well distributed sales and distribution network across the country
and their dealers are their "partners in progress". To meet the
requirement of high-end products the company has tie-ups with world class
manufacturers of such equipments. To provide a high quality customized solution
to the customer depending upon his requirement is the key strength of Subject.
The company has got an in-house state of the art R and D lab which has
developed new products and upgrading the features of existing products.
Providing a complete CATV and Security Solution is the key strength of the
company. The in-house manufacturing facility at Dehra Dun is exempted from
Excise Duty and enjoys the benefit of complete income tax exemption.
Fixed Assets:
·
Land
·
Buildings
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Plant and Machinery
·
Electrical Fittings
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Office Equipments
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Furniture and Fixture
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Computers
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Vehicles
·
Cable TV Networks
Web details:
Incorporated in 1985, Subject is a widely held public
limited company employing 110 persons. The company offers a range of products
and services targeted at the cable and satellite television market in India.
Primary customer segments are cable and satellite TV operators, premium hotels,
residential complexes and shopping malls. The company has its head office at
Noida, an industrial town in the suburbs of New Delhi, and manufacturing
facilities at Dehra Dun in Uttarkhand state. Products and services related to
cable and satellite television have been subject core business since 1985 and
it is today an industry leader.
In 2006 the company added security and surveillance systems to its product
portfolio.
Subject is principals include Alcad, Spain (satellite television products),
KoolConnect, USA (interactive television systems), Dedicated Micros, UK (CCTV
systems) and Philips, Singapore (“smart” televisions for hotels).
Subject is a publicly traded company with its stock listed at the Bombay Stock
Exchange.
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 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.39.32 |
|
UK Pound |
1 |
Rs.77.53 |
|
Euro |
1 |
Rs.57.91 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
48 |
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 |
|