MIRA
INFORM REPORT
|
Report Date : |
15.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
RELIANCE BIG TV LIMITED |
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Formerly Known
As : |
RELIANCE INFRASTRUCTURE UTILITIES PRIVATE LIMITED |
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Registered
Office : |
H Block, 1st Floor, Dhirubhai Ambani, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
13.05.2005 |
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Com. Reg. No.: |
11-153294 |
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CIN No.: [Company Identification
No.] |
U45203MH2005PLC153294 |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business
: |
Providing Direct to Home Services. |
RATING & COMMENTS
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MIRA’s Rating : |
B (26) |
|
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 |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Reliance ADA Group. It is an established company
having moderate track. There appears huge accumulated losses recorded by the
company. However, trade relations are reported as fair. Business is active. Payments
are reported to be slow. 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) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 DECLIND BY
Management non co-operative.
LOCATIONS
|
Registered Office : |
H Block, 1st Floor, Dhirubhai Ambani, |
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Tel. No.: |
91-22-30386286 |
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Fax No.: |
91-22-30376622 |
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E-Mail : |
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Website : |
DIRECTORS
As on 29.09.2010
|
Name : |
Mr. Anil D Ambani |
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Designation : |
Director |
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Address : |
Sea Wind, 39, Cuff Parade, Mumbai-400005, |
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Date of Birth/Age : |
04.06.1959 |
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Date of Appointment : |
07.06.2005 |
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Date of Ceasing: |
10.10.2009 |
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Name : |
Mr. Amit J Khanna |
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Designation : |
Director |
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Address : |
301, Sea Star, Balarj Sahani Marg, Near Holiday Inn, Juhu,
Mumbai-400049, |
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Date of Birth/Age : |
01.03.1951 |
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Date of Appointment : |
07.06.2005 |
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Name : |
Mr. Doshi B Gautam |
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Designation : |
Director |
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Address : |
B 131, Grand Paradi August Kranti Marg, Mumbai-400036, |
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Date of Birth/Age : |
23.12.1952 |
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Date of Appointment : |
14.12.2007 |
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Name : |
Mr. Hasit Navinchandra Shukla |
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Designation : |
Director |
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Address : |
403, “Saita Co-Operative Housing Society Limited, |
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Date of Birth/Age : |
28.08.1962 |
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Date of Appointment : |
29.09.2010 |
KEY EXECUTIVES
|
Name : |
Mr. Hitesh K Chawda |
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Designation : |
Manager |
|
Address : |
602, S Regency, Plot No. 4, Opposite Terna Polytechnic Sector, 2A,
Koparkhairne, Navi Mumbai-400710, |
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Date of Birth/Age : |
21.06.1969 |
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Date of Appointment : |
14.12.2007 |
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Name : |
Mr. Hitesh K Chawda |
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Designation : |
Secretary |
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Address : |
602, S Regency, Plot No. 4, Opposite Terna Polytechnic Sector, 2A,
Koparkhairne, Navi Mumbai-400710, |
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Date of Birth/Age : |
21.06.1969 |
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Date of Appointment : |
01.07.2006 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 29.09.2010
|
Names of Shareholders |
|
No. of Shares |
|
Reliance Communications Limited, |
|
9999940 |
|
Anil D Ambani Jointly with Reliance Communications Limited |
|
10 |
|
Satish Seth Jointly with Reliance Communications Limited |
|
10 |
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Amitabh Jhunjhunwala Jointly with Reliance Communications Limited |
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10 |
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Gautam Doshi Jointly with Reliance Communications Limited |
|
10 |
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Hasit Shukla Jointly with Reliance Communications Limited |
|
10 |
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Surendera Pipara Jointly with Reliance Communications Limited |
|
10 |
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Total |
|
10000000 |
Equity Share Breakup (Percentage of Total Equity)
As on 30.09.2010
|
Category |
Percentage |
|
Bodies corporate |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Direct to Home Services. |
GENERAL INFORMATION
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No. of Employees : |
Not Divulged by the management. |
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Bankers : |
Not Divulged |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Pathak H D and Associates Chartered Accountant |
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Address : |
709, Tulsiani Chambers, 212, Nariman Point, Mumbai-400021, |
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Holding Company: |
Reliance Communications Limited, L45309MH2004PLC147531 |
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Fellow Subsidiaries: |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10000000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
|
|
|
|
10000000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
||
Note:
All the above shares are held by Reliance
Communications Limited, the Holding Company.
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 |
100.000 |
100.000 |
100.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.000 |
0.000 |
10.922 |
|
|
4] (Accumulated Losses) |
[1899.769] |
[831.486] |
0.000 |
|
|
NETWORTH |
[1799.769] |
[731.486] |
110.922 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
2846.473 |
1488.060 |
781.137 |
|
|
TOTAL BORROWING |
2846.473 |
1488.060 |
781.137 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
3.097 |
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|
|
|
|
|
|
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TOTAL |
1046.704 |
756.574 |
895.156 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2543.299 |
2073.800 |
315.005 |
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Capital work-in-progress |
131.884 |
209.633 |
331.281 |
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|
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INVESTMENT |
0.034 |
0.034 |
0.034 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000 |
0.000 |
|
|
Sundry Debtors |
19.353
|
0.000 |
0.000 |
|
|
Cash & Bank Balances |
64.350
|
52.850 |
549.705 |
|
|
Other Current Assets |
10.369
|
6.233 |
9.446 |
|
|
Loans & Advances |
704.298
|
1011.558 |
63.284 |
|
Total
Current Assets |
798.370
|
1070.641 |
622.435 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1559.242
|
1133.853 |
284.518 |
|
|
Other Current Liabilities |
865.707
|
1461.747 |
87.147 |
|
|
Provisions |
1.934
|
1.934 |
1.934 |
|
Total
Current Liabilities |
2426.883
|
2597.534 |
373.599 |
|
|
Net Current Assets |
[1628.513]
|
[1526.893] |
248.836 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1046.704 |
756.574 |
895.156 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Service Income |
2668.763 |
1039.366 |
0.000 |
|
|
|
Other Income |
4.825 |
17.287 |
52.607 |
|
|
|
TOTAL |
2673.588 |
1056.653 |
52.607 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Licence Fees and Network Expenses |
2485.533 |
1075.829 |
1.936 |
|
|
|
Sales and General Administrative Expenses |
817.238 |
662.763 |
36.948 |
|
|
|
TOTAL |
3302.771 |
1738.592 |
38.884 |
|
|
|
|
|
|
|
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
[629.183] |
[681.939] |
13.723 |
|
|
|
|
|
|
|
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|
Less/ Add |
DEPRECIATION/
AMORTISATION |
439.100 |
163.565 |
3.446 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
[1068.283] |
[845.504] |
10.277 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
0.000 |
[3.097] |
4.261 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX |
[1068.283] |
[842.407] |
6.016 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
[831.486] |
10.921 |
4.905 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
[1899.769] |
[831.486] |
10.921 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
227.295 |
658.624 |
217.296 |
|
|
TOTAL IMPORTS |
227.295 |
658.624 |
217.296 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
[106.83] |
[84.24] |
0.60 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
[39.96]
|
[79.72] |
11.44 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
[40.03]
|
[81.35] |
NA |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
[31.96]
|
[26.89] |
1.10 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
[0.59]
|
[1.16] |
0.09 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
[2.93]
|
[5.59] |
10.41 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.33
|
0.41 |
1.67 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY
CREDITORS
(Rs.
In Millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
|
|
|
|
- Dues to Micro Small and Medium Enterprises |
2.639 |
7.576 |
-- |
|
- Due to other |
1556.603 |
1126.277 |
284.518 |
|
Total |
1559.242 |
1133.853 |
284.518 |
Note:
The Registered office of the company has been shifted from 3rd
Floor, Reliance Energy Centre, Santacruz (East), Mumbai,
OPERATIONS AND
FINANCIAL PERFORMANCE
The Company launched
The Company’s gross income for the financial year ended March 31, 2010
increased to Rs.2673.500 Millions, from Rs. 1056.600 Millions in the previous
year. During the year, the Company had incurred loss of Rs.1068.200 Millions.
The Company has entered into various contracts in the areas of DTH and
value added service businesses. While benefits from such contracts will accrue
in the future years, their progress is periodically reviewed.
Contingent Liabilities
|
Particulars |
31.03.2010 Rs. In Millions |
|
a) Estimated amount of contracts remaining
to be executed on capital account (Net
of Advances) and not provided for |
35.011 |
|
b) Bank Guarantee (Against the corporate
guarantee given by holding company) |
539.500 |
Fixed Assets:
·
RF UP Link
·
Asset in Customer
Premises
·
Direct to Home (DTH) License
·
Brand License
·
Trade Marks
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.45.30 |
|
|
1 |
Rs.71.73 |
|
Euro |
1 |
Rs.60.40 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
|
26 |
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.