MIRA INFORM REPORT
|
Report Date : |
19.04.2011 |
Note :- Registered office of the company has been shifted from Span Centre, South
Avenue, Santacruz (west), Mumbai – 400054, Maharashtra, India to the present
address w.e.f. 15.04.2010
IDENTIFICATION DETAILS
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Name : |
SONY MUSIC ENTERTAINMENT INDIA PRIVATE LIMITED (w.e.f.
02.03.2009) |
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Formerly Known As: |
SONY BMG MUSIC ENTERTAINMENT ( |
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Registered Office : |
Raheja Centre, 92, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
02.06.2004 |
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Com. Reg. No.: |
11-146706 |
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CIN No.: [Company
Identification No.] |
U92100MH2004PTC146706 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMS45981F |
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PAN No.: [Permanent
Account No.] |
AAICS1766Q |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Subject is a Music Company |
RATING & COMMENTS
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MIRA’s Rating : |
B (30) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 In view of strong holding, the company can be considered normal for
business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DENIED BY
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Name : |
Mr. Deepak Verma |
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Designation : |
Accounts Manager |
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Contact No.: |
91-22-67069000) |
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Date : |
14.04.2011 |
LOCATIONS
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Registered Office : |
Raheja Centre, 92, |
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Tel. No.: |
91-22-67069000 |
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Fax No.: |
91-22-67069010 |
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E-Mail : |
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Website : |
DIRECTORS
As on 28.09.2010
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Name : |
Mr. Shridhar Subramanium |
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Designation : |
Managing Director |
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Address : |
1102 Shrusthi Apartments |
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Date of Birth/Age : |
02.04.1963 |
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Date of Appointment : |
30.09.2005 |
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Din No.: |
00118318 |
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Name : |
Mr. Sanujeet Bhujabal |
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Designation : |
Director |
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Address : |
Flat/ Plot No. 466, Floor 11, |
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Date of Birth/Age : |
20.10.1968 |
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Date of Appointment : |
21.11.2007 |
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Din No.: |
01915460 |
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Name : |
Mr. Sumit Chatterjee |
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Designation : |
Director |
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Address : |
A-502, Pearl Apartments CHS Limited, Plot No. 33, 3rd X Road, Swami Samarth Nagar, Near Hy-Poin
Hotel, Mumbai-400053, |
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Date of Birth/Age : |
16.08.1966 |
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Date of Appointment : |
07.08.2008 |
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Din No.: |
02269713 |
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Name : |
Ms. Julie Greifer Swidler |
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Designation : |
Director |
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Address : |
215 W, |
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Date of Birth/Age : |
04.04.1958 |
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Date of Appointment : |
30.09.2009 |
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Din No.: |
02538253 |
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Name : |
Mr. Richard Steven Sanders |
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Designation : |
Director |
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Address : |
410, Central Park West, New York-10025, |
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Date of Birth/Age : |
23.09.1954 |
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Date of Appointment : |
30.09.2009 |
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Din No.: |
02538436 |
KEY EXECUTIVES
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Name : |
Mr. Deepak Verma |
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Designation : |
Accounts Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 28.09.2010
|
Names of Shareholders |
No. of Shares |
|
SBME |
9903399 |
|
Sony Music Entertainment International Limited ( |
1 |
|
Total |
9903400 |
Equity Share Break Up (as on 28.09.2010)
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Particulars |
Percentage |
|
Foreign holdings (foreign institutional
investors (s), foreign companies (s), foreign financial institution (s), non-
resident Indian (s) or overseas corporate bodies or others |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is a Music Company |
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Products : |
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GENERAL INFORMATION
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Employees: |
600 (Approximately) |
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Bankers: |
Not Available |
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Facilities : |
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Auditors : |
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Name : |
Price Waterhouse and Company Chartered Accountant |
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Address : |
252, Veer Savarkar Marg, |
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Tel. No.: |
91-22-39896000 |
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Fax No.: |
91-22-39835000 |
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Fellow Subsidiaries : |
Sony Music Entertainment, Sony Must Entertainment U.K.
Limited Sony Music Entertainment Asia
Inc. Sony/ATV Music Publishing ( Sony Music Entertainment
International Services GmbH Sony Music Entertainment ( Sony Must Entertainment ( Sony DADC Manufacturing ( SPE Films India Private Limited Sony Music Entertainment Phils.,
Inc. Sony Music Entertainment Sony Music Entertainment
Operating ( Sony Electronics Asia Pacific
Private Limited Sony Music Entertainment ( Sony Music Entertainment Sony Music Entertainment Hong
Kong Limited Sony Music Publishing SDN BHD |
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Holding Company: |
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CAPITAL STRUCTURE
As on 28.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
9903400 |
Equity Shares |
Rs.10/- each |
Rs.99.034
millions |
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|
Note :
Of the above 9903399 shares are held by
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
99.034 |
99.034 |
99.034 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
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3] Reserves & Surplus |
0.000 |
0.000 |
22.389 |
|
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4] (Accumulated Losses) |
(363.985) |
(30.691) |
0.000 |
|
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NETWORTH |
(264.951) |
68.343 |
121.423 |
|
|
LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
441.744 |
263.231 |
0.000 |
|
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TOTAL BORROWING |
441.744 |
263.231 |
0.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
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|
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TOTAL |
176.793 |
331.574 |
121.423 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
12.534 |
20.656 |
25.314 |
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Capital work-in-progress |
19.275 |
0.000 |
1.067 |
|
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|
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INVESTMENT |
0.000 |
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 |
22.708
|
14.374
|
15.633
|
|
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Sundry Debtors |
191.179
|
229.368
|
161.388
|
|
|
Cash & Bank Balances |
1.338
|
0.841
|
5.702
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
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Loans & Advances |
238.247
|
346.891
|
182.023
|
|
Total
Current Assets |
453.472
|
591.474
|
364.746 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
282.267
|
254.897
|
215.257
|
|
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Other Current Liabilities |
11.184
|
12.757
|
44.323
|
|
|
Provisions |
15.037
|
12.902
|
10.124
|
|
Total
Current Liabilities |
308.488
|
280.556
|
269.704 |
|
|
Net Current Assets |
144.984
|
310.918
|
95.042 |
|
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|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
176.793 |
331.574 |
121.423 |
|
PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
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SALES |
|
|
|
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Income |
780.647 |
788.713 |
595.841 |
|
|
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Other Income |
28.729 |
28.584 |
9.818 |
|
|
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TOTAL (A) |
809.376 |
817.297 |
605.659 |
|
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|
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|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Goods Sold |
147.588 |
96.449 |
129.757 |
|
|
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Direct Expenses |
589.550 |
395.896 |
176.524 |
|
|
|
Employees Costs |
83.358 |
81.165 |
69.511 |
|
|
|
Administrative and General Expenses |
283.286 |
265.742 |
218.817 |
|
|
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TOTAL (B) |
1103.782 |
839.252 |
594.609 |
|
|
|
|
|
|
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|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(294.406) |
(21.955) |
11.050 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
30.016 |
17.278 |
0.784 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(324.422) |
(39.233) |
10.266 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
8.869 |
12.638 |
6.004 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(333.291) |
(51.871) |
4.262 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
0.003 |
1.208 |
7.083 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
(333.294) |
(53.079) |
(2.821) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(30.691) |
22.388 |
27.270 |
|
|
|
|
|
|
|
|
|
Less |
Transitional
effect on account of revised AS-15 “Employee Benefits” |
0.000 |
0.000 |
2.061 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(363.985) |
(30.691) |
22.388 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
33.291 |
35.797 |
31.416 |
|
|
|
Royalty Income |
53.990 |
50.745 |
29.793 |
|
|
|
Others |
4.377 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
91.658 |
86.542 |
61.209 |
|
|
|
|
|
|
|
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|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
12.898 |
11.331 |
11.719 |
|
|
|
Finished Goods |
0.000 |
0.000 |
0.000 |
|
|
|
Others |
0.000 |
0.000 |
0.095 |
|
|
TOTAL IMPORTS |
12.898 |
11.331 |
11.814 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(33.65) |
(5.36) |
(0.28) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(41.18)
|
(6.49)
|
(0.47) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(42.69)
|
(6.58)
|
0.72 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(71.52)
|
(8.47)
|
1.09 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
1.26
|
(0.76)
|
0.04 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
(2.83)
|
7.96
|
2.22 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.47
|
2.11
|
1.35 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS :
(Rs.
in Millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Micro and Small Enterprises |
0.000 |
0.000 |
0.000 |
|
Others |
282.267 |
254.897 |
215.257 |
|
Total |
282.267 |
254.897 |
215.257 |
OPERATIONS OF THE
COMPANY :
Revenue :-
Due to
global recession negatively affecting the market conditions, the venture
undertaken by the company of Financing Film production not delivering the
desired results, inflation in the prices for copyright acquisition in their
business and increase in returns on physical Sales, consequently placed a lot
of pressure on the Company's margins.
However
the Company has experienced growth in physical format sales by 3 3 % on account
of higher acquisition of music copyrights and wholesale business of Disney home
video products.
Digital,
Broadcasting And Licensing Business :-
Non Physical forms of music like
mobile, radio, public performance and Internet are becoming increasingly
popular. In this year the company has entered into various deals for sale of
songs, synchronization, embedding and digital downloads etc. with various
television channels and telcos.
MUSIC BUSINESS
Hindi OSTs’
Business :-
The company had very strong
release calendar during the year.
The company has released music of My
Name is Khan directed by Karan khar, Kurbaan,
Wake up Sid produced by Dharma Productions.
The company has also released
music of Rage se right and what's
your rashee? produced by UN software
communications.
Apart from the above there were
other music releases like Turn Mile, Quick Gun Murugan, Love, Sex
and Dhoka.
Film Business :-
The company has released 2thi
Movie "Turn Mile" under the banner of "Vishesh Film". The Movie
was a love story set against the backdrop of the infamous July 2005 Mumbai
floods, was released on 13 th November 2010. The Film received good ratings
from various trade analysts. However eventually the film achieved average
response at the Box office.
The Company has entered into
agreements with various television broadcasters for licensing of Satellite
Rights of RAAZ tmc. The first worldwide satellite release took place on 28th
Jun '09 on "Star Plus" channel.
Southern Regional
OSTs’ Business :-
The Company has released OSTs of
South Regional of more than 20 movies in 2009-10. The Company has released
various OSTs' during the year, the major albums were viz., Vaamanan, Rajadhi
Raja, Pokisham, Kandaswamy, Aayirathil Oruvan, Vinnaithandi Varuvaya and Sivaji
The Boss.
The company has entered into
Telugu (South Regional) Market by acquiring its First Telugu Movie Soundtracks
"Arya 2". The Album has achieved very good response.
The music of Vinnaithandi Varuvaya
and Sivaji The Boss were composed by A.R. Rahman.
Local-Pop Music
Business :-
The company has released Strategic
Compilations "Ka ilasha Chandan Mein" sung by popular sufi singer
Kailash Kher. The Company has focused on MP3 format to boost sales which was
well accepted by the trade.
International
Music Business :-
The company has released the album
titled as "Michael Jackson's This is it" which was well accepted by the trade. There were series
other new releases in strategic international albums category like Number One,
MOS Ones, History Book One 1 The Short Films, King of POP, She Wolf. The
company could maintain its market share in International music segment.
FUTURE PLAN OF THE
COMPANY
The Company has drawn up the
aggressive Business Plan for Financial Year 2010-11. In next year the Company
has targeted revenue growth of 15%. The Company has targeted to acquire music
rights of 7 Bollywood OSTs at Rs. 200.000 Millions and expansion of south
regional segment through investment of Rs. 100.000 Millions in acquisition of
13 music rights in Tamil OSTs.
FIXED
ASSETS :
¨
Plant and Machinery
¨
Furniture and Fixtures
¨
Office Equipments
¨
Computer
¨ Vehicles
¨ Leasehold
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.44.27 |
|
|
1 |
Rs.72.07 |
|
Euro |
1 |
Rs.63.66 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
30 |
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 |
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 |
|
NB |
New Business |
-- |
|
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.