MIRA
INFORM REPORT
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Report Date : |
21.07.2011 |
IDENTIFICATION DETAILS
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Name : |
DRAFTFCB-ULKA ADVERTISING PRIVATE LIMITED (w.e.f. 17.12.2007) |
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Formerly Known
As : |
FCB-ULKA ADVERTISING PRIVATE LIMITED |
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Registered
Office : |
4th Floor, Nirmal, Nariman Point, Mumbai – 400 021, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
23.04.1970 |
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Com. Reg. No.: |
11-014617 |
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Capital
Investment / Paid-up Capital : |
Rs.0.451
million |
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CIN No.: [Company Identification
No.] |
U74300MH1970PTC014617 |
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TAN No.: [Tax Deduction & Collection
Account No.] |
MUMF03281F |
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PAN No.: [Permanent Account No.] |
AAACU0566E |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Advertising Agency |
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No. of Employees
: |
Approximately 700 (All over |
RATING & COMMENTS
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MIRA’s Rating : |
A (64) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 2033000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an old and well established company having fine track.
General financial position is good. Trade relations are reported as fair.
Business is active. Payments are reported to be 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.
INFORMATION PARTED BY (General Details)
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Name : |
Mr. Pradeep |
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Designation : |
Accounts Manager |
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Contact No.: |
91-22-66707070 |
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Date : |
20.07.2011 |
LOCATIONS
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Registered Office : |
4th Floor, Nirmal, Nariman Point, Mumbai – 400 021, |
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Tel. No.: |
91-22-66707070/ 22026884 |
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Fax No.: |
91-22-66707172/ 22875984 |
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E-Mail : |
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Website : |
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Location : |
Owned |
DIRECTORS
As on 17.09.2010
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Name : |
Mr. Anil Kapoor |
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Designation : |
Director |
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Address : |
Sea Belle, |
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Date of Birth/Age : |
07.09.1947 |
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Date of Appointment : |
16.09.1988 |
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DIN No.: |
00080279 |
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Name : |
Mr. Nagesh Ganesh Alai |
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Designation : |
Director |
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Address : |
Flat No.15, 2nd
Floor, Deepali Co-Operative Housing Society Limited, |
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Date of Birth/Age : |
13.06.1958 |
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Date of Appointment : |
06.07.2007 |
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DIN No.: |
01290616 |
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Name : |
Mr. Laurence Joseph Boschetto |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
13.06.1958 |
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Date of Appointment : |
10.03.2008 |
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DIN No.: |
02117114 |
KEY EXECUTIVES
|
Name : |
Mr. Pradeep |
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Designation : |
Accounts Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 17.09.2010
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Names of Shareholders |
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No. of Shares |
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Advertisement
and Communication Services ( |
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4510 |
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Interpublic
Mauritius Limited, |
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1 |
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Total
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4511 |
As on 17.09.2010
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Equity Share Breakup |
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Percentage of Holding |
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Category |
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Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Advertising Agency |
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Terms : |
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Selling : |
L/C, Cash and Credit |
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Purchasing : |
L/C, Cash and Credit |
GENERAL INFORMATION
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Customers : |
Advertisers |
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No. of Employees : |
Approximately 700 (All over |
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Bankers : |
v
Hongkong and Shanghai Banking Corporation
Limited, Nariman Point, Mumbai, v
Bank of |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountants |
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Address : |
252, Veer Savarkar Marg, Dadar (West), Mumbai – 400 028, |
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Holding Company : |
Advertisement
and Communication Services ( Address: 10
Frere Felix De Valois, |
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Ultimate Holding Company : |
Interpublic Group of Company Inc. |
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Subsidiaries : |
Interface Communications Private Limited CIN No.: U74300DL1985PTC021874 |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000 |
Equity Shares |
Rs.100/- each |
Rs.5.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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4511 |
Equity Shares |
Rs.100/- each |
Rs.0.451
million |
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Notes:
1. 4511 Equity Shares are held by Advertisement and
Communication Services (
2. The Board of Directors at their meeting held on July 29, 2009
approved the buy back of 180 equity shares of Rs.100 each which was ratified by
members as the Extraordinary General Meeting held on July 31, 2009. The Company
bought back 180 equity shares of Rs.100 each from Advertisement and
Communication Services (
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 (15 Months) |
31.12.2008 (12 Months) |
31.12.2007 (12 Months) |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
0.451 |
0.469 |
0.501 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
507.756 |
396.778 |
295.226 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
508.207 |
397.247 |
295.727 |
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LOAN FUNDS |
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1] Secured Loans |
12.948 |
26.626 |
36.486 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
12.948 |
26.626 |
36.486 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
521.155 |
423.873 |
332.213 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
25.802 |
42.666 |
59.732 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
1.400 |
1.400 |
1.400 |
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DEFERREX TAX ASSETS |
96.305 |
43.519 |
31.246 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Unbilled Jobs and Jobs-in-Progress |
861.374
|
480.638 |
447.270 |
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Sundry Debtors |
1805.803
|
1529.295 |
1241.546 |
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Cash & Bank Balances |
315.857
|
99.066 |
111.222 |
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Loans, Advances & Other Current Assets |
430.822
|
261.353 |
292.302 |
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Total
Current Assets |
3413.856
|
2370.352 |
2092.340 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
2660.952 |
1679.511 |
1786.971 |
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Other Current Liabilities |
215.627
|
285.553 |
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Provisions |
139.629
|
69.000 |
65.534 |
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Total
Current Liabilities |
3016.208
|
2034.064 |
1852.505 |
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Net Current Assets |
397.648
|
336.288 |
239.835 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
521.155 |
423.873 |
332.213 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2010 (15 Months) |
31.12.2008 (12 Months) |
31.12.2007 (12 Months) |
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EARNINGS IN
FOREIGN CURRENCY |
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Commission and Services |
25.900 |
10.300 |
NA |
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TOTAL EARNINGS |
25.900 |
10.300 |
NA |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2010 (15 Months) |
31.12.2008 (12 Months) |
31.12.2007 (12 Months) |
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Debt Equity Ratio (Total Liability/Networth) |
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5.96
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5.19 |
6.39 |
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Current Ratio (Current Asset/Current Liability) |
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1.13
|
1.17 |
1.13 |
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
31.03.2010 (15 Months) |
31.12.2008 (12 Months) |
31.12.2007 (12 Months) |
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|
(Rs. in
millions) |
(Rs. in
millions) |
(Rs. in
millions) |
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Sundry Creditors |
2660.952 |
1679.511 |
NA |
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FINANCIAL RESULTS:
The macro economic situation continued to be difficult for most part of
2009 with signs of revival coming towards the end of the 3rd quarter
of the year and gradually improving from then on. During the 15 months period,
the company posted an income of Rs.1.34 billion compared to Rs.0.94 billion in
the year 2008. This was possible due to winning a clutch of new business by the
various business divisions of the company and additional assignments from
existing clients.
In the year 2009, in the interest of attracting and retaining talent,
the company had to put in place remuneration reviews of its personnel as also
move into a larger office premises to rationalize space utilization amongst the
group and to handle the growing business, both critical investments in the
agency business. The increase of Rs.0.39 billion in expenditure in the current
period over 2008 is essentially due to the above factors.
The company posted healthy PBT of Rs.0.31 billion compared to Rs.0.29
billion in 2008.
Going forward, the Directors are sanguine about the company’s revenues
and profits and believe that it will continue to do well albeit faced with
increasing remuneration pressures and competition.
BUY BACK OF
SHARES:
During the period 1st January 2009 to 31st March
2010, the company bought back 180 fully paid-up Equity Shares of Rs.100/- each
constituting 3.84% of the total existing paid-up equity shares capital of the
Company at a price of Rs.0.483 per share aggregating to Rs.86.905 millions from
its shareholder Advertisement and Communication Services (Mauritius) Limited.
This was done, considering the significant build-up in accumulated reserves and
retained earnings of the company and also to align its capitalization with the
operating needs.
FORM 8:
|
Name of the company |
ULKA ADVERTISING PRIVATE LIMITED |
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Presented By |
Bank of |
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1) Date and description of instrument creating the change |
Deed of
Hypothecation and Charge of debts dated 03.02.1984. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.1.500 millions
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
All the book-debts
outstandings, moneys receivables etc. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Hypothecation and
charge on all the book-debts outstandings, money receivable etc. of the company
to secure a Cash Credit Limit of Rs.1.500 millions repayable/ together with
interest @ 8% p.a. over Bank Rate Minimum 18% per annum with quarterly rests
or at such other rate/s as may be notified to the company by the Bank from
time to time. |
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5) Name and Address and description of the person entitled to the charge. |
Bank of |
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6) Date and brief description of instrument modifying the charge |
NIL |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
NIL |
TRADE REFERENCES:
v
Antas
v
STA
v
Mudra Communications
FIXED ASSETS:
v Buildings
v Leasehold Improvements
v Office and Studio Equipments-Owned
v Office and Studio Equipments-Leased
v Computers-Owned
v Computers-Leased
v Electrical Appliances and Fittings
v Furniture and Fixtures
v Vehicles-Owned
v Vehicles-Leased
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.44.46 |
|
|
1 |
Rs.71.67 |
|
Euro |
1 |
Rs.62.94 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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|
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
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.