MIRA
INFORM REPORT
|
Report Date : |
06.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
REUTERS INDIA PRIVATE LIMITED |
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Registered
Office : |
4th Floor, Nicholas Piramal Tower, B Wing, Peninsula, Corporate
Park, Ganpatrao Kadam Marg, Lower Parel (West), Mumbai 400013, Maharashtra |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
02.05.1994 |
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Com. Reg. No.: |
124764 |
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CIN No.: [Company Identification
No.] |
U64200MH1994FTC124764 |
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|
Legal Form : |
Private Limited Liability Company |
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|
Line of Business
: |
Provider of News and Financial Information to Financial Market and Media
Professionals, Global News Seekers, and Individual Investors. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 9100000 |
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|
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|
Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are reported to
be usually correct and as per commitments. 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) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION PARTED BY
|
Name : |
Mr. Yogesh Gadkari |
|
Designation : |
Finance Department |
|
Date : |
05.01.2011 |
LOCATIONS
|
Registered Office : |
4th Floor, Nicholas Piramal Tower, B Wing, Peninsula,
Corporate Park, Ganpatrao Kadam Marg, Lower Parel (West), Mumbai 400013,
Maharashtra, India |
|
Tel. No.: |
91-22-66369000 |
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Fax No.: |
91-22-30400209 |
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E-Mail : |
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Website : |
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Correspondence Office : |
3rd Floor, Construction House, 5 Walchand Hirachand Marg,
Mumbai 400001, |
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Tel. No.: |
91-22-56369000 |
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Fax No.: |
91-22-22641709 |
DIRECTORS
AS ON 15.10.2010
|
Name : |
Mr. Tarundeep Anand |
|
Designation : |
Director |
|
Date of Birth/Age : |
30.08.1973 |
|
Date of Appointment : |
16.07.2009 |
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|
|
|
Name : |
Mr. Suresh Kumar Sharma |
|
Designation : |
Director |
|
Date of Birth/Age : |
10.05.1970 |
|
Date of Appointment : |
14.08.2002 |
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|
|
|
Name : |
Ms. Anjali Gupte |
|
Designation : |
Director |
|
Date of Birth/Age : |
03.09.1970 |
|
Date of Appointment : |
14.06.2004 |
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|
|
|
Name : |
Mr. Siti Jaffar |
|
Designation : |
Director |
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Date of Birth/Age : |
05.12.1967 |
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Date of Appointment : |
30.09.2005 |
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|
|
|
Name : |
Mr. David Kay Johnson |
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Designation : |
Director |
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Date of Birth/Age : |
04.02.1967 |
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Date of Appointment : |
28.09.2007 |
KEY EXECUTIVES
|
Name : |
Mr. Yogesh Gadkari |
|
Designation : |
Finance Department |
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|
|
|
Name : |
Mr. Suresh Kumar Sharma |
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Designation : |
Secretary |
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Date of Appointment : |
27.08.1999 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 15.10.2010
|
Names of Shareholders |
No. of Shares |
|
Reuters Limited, |
57240000 |
|
Thomson Reuters Group Nominees Limited, |
310 |
|
Total |
57240310 |
AS ON 15.10.2010
|
Equity Share
Breakup |
|
Percentage of
Holding |
|
Category |
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
100.00 |
|
|
Total
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Provider of News and Financial Information to Financial Market and
Media Professionals, Global News Seekers, and Individual Investors. |
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|
|
|
Terms : |
|
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Selling : |
Cash, Credit |
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Purchasing : |
Cash, Credit |
GENERAL INFORMATION
|
Customers : |
|
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|
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No. of Employees : |
200 (Approximately) |
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Bankers : |
Scheduled Bank |
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Facilities : |
-- |
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Banking
Relations : |
-- |
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|
|
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Auditors : |
|
|
Name : |
Price Waterhouse Chartered Accountant |
|
Address : |
252, Veer Savarkar Marg, |
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|
|
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Reuters Limited, |
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|
|
|
|
Ultimate Holding Company: |
Woodbridge Company Limited |
CAPITAL STRUCTURE
AS ON 15.10.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
75000000 |
Equity Shares |
Rs. 10 each |
Rs.750.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
57240310 |
Equity Shares |
Rs. 10 each |
Rs.572.403 millions |
|
|
|
|
|
Note:
Of the above, 57,240,000 equity shares of Rs. 10 each are held by Reuters
Limited, United Kingdom and 310 equity shares of Rs. 10 each are held by
Reuters Group Nominees Limited, United Kingdom.
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 |
572.403 |
572.403 |
572.403 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1725.356 |
1640.387 |
1080.808 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2297.759 |
2212.790 |
1653.211 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.039 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LI |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2297.759 |
2212.790 |
1653.250 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
345.213 |
380.332 |
801.526 |
|
|
Capital work-in-progress |
14.186 |
22.533 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
83.208 |
98.304 |
49.849 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000 |
0.000 |
|
|
Sundry Debtors |
299.261
|
518.547 |
1171.737 |
|
|
Cash & Bank Balances |
1061.209
|
815.914 |
406.661 |
|
|
Other Current Assets |
2.541
|
0.018 |
0.000 |
|
|
Loans & Advances |
1099.812
|
2339.262 |
698.260 |
|
Total
Current Assets |
2462.823
|
3673.741 |
2276.658 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
314.611
|
1671.628 |
1173.401 |
|
|
Other Current Liabilities |
262.466
|
270.292 |
152.895 |
|
|
Provisions |
30.594
|
20.200 |
148.487 |
|
Total
Current Liabilities |
607.671
|
1962.120 |
1474.783 |
|
|
Net Current Assets |
1855.152
|
1711.621 |
801.875 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2297.759 |
2212.790 |
1653.250 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales |
3008.096 |
2768.410 |
4321.497 |
|
|
|
Other Income |
226.627 |
185.548 |
38.554 |
|
|
|
TOTAL (A) |
3234.723 |
2953.958 |
4360.051 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Office Expenses |
|
|
|
|
|
|
Administrative Expenses |
2977.677 |
2732.205 |
3766.068 |
|
|
|
Advertising Expenses |
|
|
|
|
|
|
TOTAL (B) |
2977.677 |
2732.205 |
3766.068 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
257.045 |
221.753 |
593.983 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
NA |
NA |
NA |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
257.045 |
221.753 |
593.983 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
106.795 |
104.656 |
247.759 |
|
|
|
|
|
|
|
|
|
Add |
PROFIT ON SALES
OF BUSINESS UNIT |
0.000 |
472.251 |
0.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
PRIOR PERIOD
ITEM |
(34.943) |
19.965 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
115.307 |
609.313 |
346.224 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
30.338 |
49.735 |
132.990 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
84.969 |
559.578 |
213.234 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1587.839 |
1028.261 |
815.027 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
1672.808 |
1587.839 |
1028.261 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Edit and Data Fees |
280.992 |
267.930 |
2014.509 |
|
|
|
Marketing Fees |
1.969 |
1.592 |
1.249 |
|
|
|
Accounting and Financial Fees |
0.000 |
0.000 |
406.928 |
|
|
TOTAL EARNINGS |
282.961 |
269.522 |
2422.686 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.48 |
9.78 |
-- |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
2.62
|
18.94 |
4.89 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.83
|
22.00 |
8.01 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.10
|
15.02 |
11.24 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.05
|
0.27 |
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.26
|
0.88 |
0.89 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.05
|
1.87 |
1.54 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS
Rs. In Millions
|
Particulars |
31.03.2010
|
31.03.2009 |
31.03.2008 |
|
|
|
|
|
|
Micro, Small and Medium Enterprises
|
0.029
|
0.015 |
0.000 |
|
Others |
314.582
|
1671.613 |
1173.401 |
|
Sundry Creditors |
314.611
|
1671.628 |
1173.401 |
BUSINESS
OPERATIONS REVIEW
In the year under review the Company posted a net sales of Rs. 3008.095
millions (up from last year by 8.65%) and the net profit after tax was down by
84.81%. The Company has recently launched a new range of next generation of
information products viz. Thomson Reuter Eikon, Elektron and Insider. These
products will soon be made available to the market and the entire sales
organization is being geared for this purpose.
Contingent
Liabilities:
Rs. In Millions
|
Particulars |
31.03.2010 |
31.03.2009 |
|
Bank guarantees outstanding
for which the Company has given counter guarantees (Secured against fixed
deposit and margin money Rs. 2.924) |
2.924 |
2.596 |
|
Bond in favour
of the President of India endorsed through Deputy Commissioner of Customs for
storage of capital goods without payment of custom import duty |
3.515 |
3.515 |
|
Bond in favour
of the President of India endorsed through Deputy Commissioner of Customs for
performance of export obligations |
5.650 |
5.650 |
|
Direct Taxation matters
under dispute being contested by/against the Company and / or in appeal |
227.398 |
431.921 |
|
Indirect
Taxation matters under dispute being contested by/against the Company and /
or in appeal |
441.192 |
438.162 |
FIXED ASSETS:
- Goodwill
- Customers
Rights
- Computer
Software
- Leasehold
Improvements
- Equipments
- Motor
Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.20 |
|
|
1 |
Rs.70.27 |
|
Euro |
1 |
Rs.59.99 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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.