MIRA
INFORM REPORT
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Report Date : |
10.06.2011 |
IDENTIFICATION DETAILS
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Name : |
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Registered
Office : |
Sahara |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
06.08.1981 |
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Com. Reg. No.: |
11-024947 |
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Capital
Investment / Paid-up Capital : |
Rs.215.250 Millions |
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CIN No.: [Company
Identification No.] |
L67120MH1981PLC024947 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMS37736G |
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PAN No.: [Permanent
Account No.] |
AAACP3047R |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business : |
Subject is a Television Content Provider and also Produces
and Distributes Movies. |
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No. of Employees
: |
Not Divulged by Management |
RATING & COMMENTS
|
MIRA’s Rating : |
A [67] |
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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 11000000 |
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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 a part of Sahara Group Controlled and Management by Mr.
Subrata Roy Sahara. It is a well established and reputed company having satisfactory track.
Directors are reported as respectable and resourceful businessmen. Their
trade relations are 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 DECLINED BY
Management Non Cooperative
LOCATIONS
|
Registered Office : |
Sahara India Point CTS 40-44, S V Road Goregaon (West),
Mumbai - 400104, Maharashtra, India |
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Tel. No.: |
91-22-66981111 |
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Fax No.: |
91-22-67992190 |
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E-Mail : |
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Website : |
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Branches 1 : |
Sahara |
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Branches 2 : |
Sahara India Complex, C -2, C -3 and C -4, Sector XI, Noida -201301 ,
Uttar Pradesh, India |
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Branches 3 : |
Sahara One towers, 2nd Floor, Kamla Mills Compound, Lower
Parel, Mumbai – 400 013, |
DIRECTORS
As on 23.09.2010
|
Name : |
Mr. Subrata Roy Sahara |
|
Designation : |
Chairman |
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Name : |
Mrs. Swapna Roy |
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Designation : |
Director |
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Name : |
Mr. Amar Singh |
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Designation : |
Director |
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Name : |
Mrs. Jaya Bachchan |
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Designation : |
Director |
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Name : |
Mr. |
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Designation : |
Director |
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Name : |
Mr. Jagdish Narain Roy |
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Designation : |
Director |
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Name : |
Mr. Mahesh Prasad |
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Designation : |
Director |
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Name : |
Mr. V B Chandra |
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Designation : |
Whole-time Director |
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Name : |
Mr. Brijendra Sahay |
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Designation : |
Director |
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Name : |
Mr. Ranvir Singh Rathore |
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Designation : |
Director |
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Name : |
Mr. Harindra Singh |
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Designation : |
Director |
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Name : |
Mr. Rathikant Basu |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Deepak Segal |
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Designation : |
Chief Operating
Officer |
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Name : |
Mr. Sanjay Garg |
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Designation : |
Chief Operating
Officer |
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Name : |
Mr. D.N. Mishra |
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Designation : |
Company Secretary
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of promoters and Promoter Group |
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|
1. Indian |
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Individuals / Hindu Undivided Family |
8375000 |
38.91 |
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Bodies Corporate |
7766702 |
36.08 |
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Sub Total (A)
(1) |
16141702 |
74.99 |
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(B) Public
Shareholding |
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1. Institutions |
-- |
-- |
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2. Non
Institutions |
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Bodies Corporate |
5188233 |
24.10 |
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Individual shareholders holding nominal share capital up to Rs. 0.100
million |
170751 |
0.79 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
20501 |
0.10 |
|
Any Other [Specify] |
3813 |
0.02 |
|
Clearing Members |
1656 |
0.01 |
|
Non Resident Indians |
2157 |
0.01 |
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(B) = (B) (1) +
(B) (2) |
5383298 |
25.01 |
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Shares
held by custodians and against which depository receipts have been
issued (C) |
-- |
-- |
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Total (A) + (B) +(C) |
21525000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is a Television Content Provider and also Produces
and Distributes Movies. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
Not Divulged by Management |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Statutory Auditors : |
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Name : |
S.R. Batliboi and Asociates Chartered Accountant |
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Internal Auditors : |
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Name : |
Chaturvedi and Company Chartered Accountant |
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Enterprises
under common control |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
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|
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|
35,000,000 |
Equity Shares |
Rs.10/-each |
Rs.350.000 millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
21,525,000 |
Equity Shares |
Rs.10/-each |
Rs.215.250 millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
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1] Share Capital |
215.250 |
215.250 |
215.250 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2660.192 |
2570.872 |
2550.936 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2875.442 |
2786.122 |
2766.186 |
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LOAN FUNDS |
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1] Secured Loans |
448.330 |
177.500 |
192.151 |
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2] Unsecured Loans |
500.000 |
300.000 |
0.000 |
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TOTAL BORROWING |
948.330 |
477.500 |
192.151 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3823.772 |
3263.622 |
2958.337 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
16.575 |
15.372 |
26.971 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
33.067 |
40.808 |
55.836 |
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DEFERREX TAX ASSETS |
35.579 |
29.091 |
11.325 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
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Inventories |
452.932
|
477.474 |
480.435 |
|
|
Sundry Debtors |
284.270
|
55.528 |
556.583 |
|
|
Cash & Bank Balances |
1982.801
|
288.592 |
971.204 |
|
|
Interest Accrued on Fixed Deposit |
51.972
|
6.394 |
0.000 |
|
|
Other Current Assets |
0.000
|
0.000 |
2.613 |
|
|
Loans & Advances |
1499.637
|
3102.500 |
1295.100 |
|
Total
Current Assets |
4271.612
|
3930.488 |
3305.935 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
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Sundry Creditors |
502.682
|
685.302 |
390.720 |
|
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Other Current Liabilities |
29.331
|
63.606 |
48.957 |
|
|
Provisions |
1.048
|
3.229 |
2.196 |
|
Total
Current Liabilities |
533.061
|
752.137 |
441.873 |
|
|
Net Current Assets |
3738.551
|
3178.351 |
2864.062 |
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.143 |
|
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|
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TOTAL |
3823.772 |
3263.622 |
2958.337 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
|
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Income |
1816.050 |
2349.535 |
1972.544 |
|
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Other Income |
207.010 |
104.736 |
70.742 |
|
|
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TOTAL (A) |
2023.060 |
2454.271 |
2043.286 |
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Less |
EXPENSES |
|
|
|
|
|
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|
Content Costs |
1461.858 |
1962.329 |
1614.682 |
|
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|
Personnel Expenses |
114.196 |
138.493 |
133.961 |
|
|
|
Advertising and Distribution Expenses |
56.111 |
85.431 |
-- |
|
|
|
Operating and Other Expenses |
94.631 |
144.097 |
161.205 |
|
|
|
Decrease in Inventories |
24.542 |
4.280 |
73.428 |
|
|
|
Provision for diminution in value of investment |
0.000 |
16.312 |
0.000 |
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TOTAL (B) |
1751.338 |
2350.942 |
1983.276 |
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|
|
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|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
271.722 |
103.329 |
60.010 |
|
|
|
|
|
|
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|
Less |
FINANCIAL
EXPENSES (D) |
132.675 |
57.833 |
13.438 |
|
|
|
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|
|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
139.047 |
45.496 |
46.572 |
|
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|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2.549 |
3.356 |
13.291 |
|
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|
|
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|
PROFIT BEFORE
TAX (E-F) (G) |
136.498 |
42.140 |
33.281 |
|
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|
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|
Less |
TAX (I) |
47.178 |
22.204 |
12.602 |
|
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|
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PROFIT AFTER TAX
(G-I) (J) |
89.320 |
19.936 |
20.679 |
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|
Prior Period
Items |
0.000 |
0.000 |
7.557 |
|
|
|
|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
486.022 |
466.086 |
437.850 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
575.342 |
486.022 |
466.086 |
|
|
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|
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|
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|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Turnover |
9.455 |
20.622 |
5.174 |
|
|
TOTAL EARNINGS |
9.455 |
20.622 |
5.174 |
|
|
|
|
|
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IMPORTS |
|
|
|
|
|
|
|
Content costs |
20.001 |
94.522 |
26.068 |
|
|
TOTAL IMPORTS |
20.001 |
94.522 |
26.068 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
4.15 |
0.93 |
1.31 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Sales Turnover |
315.730 |
318.460 |
241.060 |
364.840 |
|
Total Expenditure |
277.240 |
337.020 |
268.460 |
402.560 |
|
PBIDT (Excl
OI) |
38.490 |
(18.560) |
(27.400) |
(37.720) |
|
Other Income |
28.680 |
44.620 |
49.110 |
42.700 |
|
Operating
Profit |
67.170 |
26.060 |
21.710 |
4.980 |
|
Interest |
33.890 |
33.200 |
30.820 |
23.940 |
|
Exceptional
Items |
0.000 |
10.630 |
0.000 |
0.000 |
|
PBDT |
33.28 |
3.490 |
(9.110) |
(18.960) |
|
Depreciation |
0.720 |
0.720 |
0.730 |
0.710 |
|
Profit
Before Tax |
32.580 |
2.770 |
(9.840) |
(19.670) |
|
Tax |
11.100 |
1.100 |
(3.240) |
(3.660) |
|
Reported PAT |
21.480 |
1.670 |
(6.600) |
(16.010) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
21.480 |
1.670 |
(6.600) |
(16.010) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
4.41
|
0.81 |
1.01 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.52
|
1.79 |
1.69 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.18
|
1.07 |
1.00 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.05
|
0.01 |
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.51
|
0.44 |
0.23 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
8.01
|
5.22 |
7.48 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY
CREDITORS DETAILS (Rs. in millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
|
|
|
Sundry Creditors [other than micro and
small enterprises] |
502.682
|
685.302 |
390.720 |
|
Total |
502.682
|
685.302 |
390.720 |
|
Included in Sundry Creditors are: Dues from companies under the same management |
|||
|
Aamby Valley Ltd. |
10.004 |
0.000 |
0.000 |
|
Sahara Hospitality Limited |
0.126 |
0.047 |
0.000 |
|
Sahara India Commercial Corporation Limited |
0.000
|
82.702 |
0.000 |
CONTINGENT
LIABILITIES (Rs. in millions)
Contingent Liabilities not provided for :
|
Particulars |
31.03.2010 |
31.03.2009 |
|
a) Guarantees and
Counter guarantees given by the Company:- |
|
|
|
- against loan availed
by Sahara Sanchar Limited from a bank. Loan availed as at 31-3-2010
Rs.310.403 millions (31-3-2009: Rs. Nil) |
525.000
|
0.000 |
|
- against loan
availed by Sahara Hospitality Limited from a bank. Loan availed as at
31-3-2010 Rs. Nil (31-3-2009: Rs. 1,549.038 millions ). |
0.000 |
3000.000 |
|
- against cash
credit availed by Sahara Hospitality Limited from a bank. Cash credit availed
as at 31-3-2010 Rs. Nil (31-3- 2009: Rs. 49.197
millions). |
0.000 |
66.700 |
|
b) Income Tax of Rs.
99.951 millions in respect of Assessment Years 2000-01,
2002-03, 2004-05, 2005-06, 2006-07 and 2007-08 in respect of which the
company has gone on appeal. Based on judicial pronouncements, the Company’s
claim is likely to be accepted by appellate authorities |
99.951 |
88.085 |
|
c) Custom case
pending at Tribunal in respect of financial year 2008-09. |
0.555 |
0.555 |
FINANCIAL /
OPERATIONAL RESULTS
In the reporting
fiscal, The Net Profit of company substantially increased to Rs.89.32 million as
compared to Rs. 19.94 million in last year due to better performance of Motion
Pictures Segment during the year and substantial cost cutting exercises.
Capital Issue
Company has not
made any issue of Shares during the reporting period; hence the equity capital
of the Company
stands same at Rs.
215.250 millions
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
INDUSTRY STRUCTURE, DEVELOPMENT AND FUTURE OUTLOOK:
The Indian Media
and Entertainment Industry (MandE) is comprised of various constituents like Filmed
Entertainment, Internet Advertising, Print Media, Radio, Music Industry,
Animation, Gaming and VFX, Television Distribution, Television contents and
Television Advertising Industries (functioning through the mediums of Print,
Online, Radio, Television, Out of Home-OOH etc) which cumulatively drive the
growth of E and M Industry.
Indian Media and
Entertainment (M and E) industry went through a tough phase in last two years
due to the economic slowdown which impacted businesses in the country. The industry
which is dependent on advertising for almost 38 percent of its revenues was hit
due to shrinking ad budgets of the corporate world. However, the industry as a
whole registered a very modest growth of around 1.4 percent in 2009 compared to
12 percent in 2008. It is poised for recovery in 2010, riding on the back of
improved economic growth.
The year 2009 was
a year marked with innovation and a focus on cost efficiencies across sectors,
more as a necessity to combat the pressures on bottom line. Newer content
formats and strategies adopted by the players in the industry helped ensure
that customers had more choices which led to the evolution of the industry.
Cost efficiencies which came about last year proved to be a silver lining for
the industry in a bad year, and many of these measures are here to stay and
could benefit companies in the long run.
Some sectors were
impacted more than the others like Films, Radio and Out of Home (OOH),
registered a negative growth during the year. In 2010, they are expected to
recover somewhat with a moderate growth rate.
The EandM industry
in 2009 stood at Rs. 580.8 billion registering a growth of 2.2% as compared to
Rs. 568.5 billion in 2008. The Indian EandM industry is estimated to grow from
Rs. 580.8 billion in 2009, at a CAGR of 12.4% for the next 5 years to reach Rs.
1040.8 billion in 2014. This was lower than the projected growth rate of 8.3%
for last year. The reasons for lower growth rate was largely because of lower
than expected uptake in the advertisement dependent sectors like print, OOH and
internet advertisement. Filmed entertainment also showed a negative growth due
to the cash crunch faced by the industry. Many of the factors which caused the
slowdown are not likely to persist and performance is likely to be better going
forward.
The EandM industry
continues to be dominated by TV, print and filmed entertainment. Significant
revenues continue to be from non-digital segment though there has been good
growth in the digital spending.
In comparison to
other Asian countries like
In spite of the
economic slowdown, the year 2010 is expected to see the industry coming out of
the shackles of the slowdown and witness an increase in ad spends.
Media spend in
Estimates for the industry indicate robust growth
over next five years.
The overall MandE
industry size grew from INR 579 billion in 2008 to INR 587 billion at a rate of
1.4 percent. The growth rate is expected to increase to ~ 11.2 percent in 2010,
as the industry witnesses a recovery. The CAGR from 2006 to 2009 has remained
at 10 percent and the industry expected to grow at a rate of 13 percent in next
five years.
TV and Print are
the largest sectors of the industry contributing to greater than 70 percent of
the revenues.
FILM INDUSTRY:
The Indian film
Industry enjoys mass appeal in
to the Music,
Radio and Television segment.
During the current
fiscal, their company strived well to combat the recession with acumen taking
all the measures 2009-2010 to enhance revenue
of company and released jointly with Mr. Boney Kapoor a superhit film viz.
WANTED having cast of Salman Khan and Ayesha Takia directed by Prabhudeva. The
company during current fiscal generated revenue of Rs. 299.736 millons from
motion picture segment as against Rs. 170.198 millions last fiscal posting a
growth in revenue by 76.11%.
The company is
under plan to release some movies during 2010-2011 like It’s my life, Mumbai
Cutting, Kachaa Limboo and Coffee shop. In addition to it, some other films are
also underway for future release like Rang Birangi, Loriie, Love; break up and
zindagi etc, Yahaan ke hum sikandar, Cocktail and NO Entry-2
The Indian film
industry is projected to grow at a CAGR of 12.4% over the next five years,
reaching to Rs. 170.5 billion in 2014 from the present Rs. 95 billion in 2009.
The Film Industry saw a decline in market size as compared to the previous year due to economic slowdown
and strike in the multiplex industry. Digitisation in movie screens is expected
to help the film industry garner greater revenue.
The animation,
gaming and VFX industry will continue to maintain its growth pace and is
projected to grow at a CAGR of 25.2% to Rs. 73.4 billion in 2014 from its
current size of Rs. 23.8 billion.
The Indian Film Industry
eclipses
Overall, 2009 was
a difficult year for the film Industry. While the multiplex-producer stalemate
left the Industry with
significant
losses, the general elections and swine flu also kept the Audiences away in
early 2009. Moreover, lack
of good
sustainable content affected the success ration and fortunes of the Industry.
However, the last
quarter of 2009 brought some cheer to the Industry. The success of films like
‘Ajab Prem Ki Ghazab Kahani’, Aadhavan’, Vettaikaran’, and ‘3Idiots’ boosted
the Industry’s fortunes.
There were 242
Hindi films (nearly 140 mainstream Hindi movies) released in2009 as against 229
released in the previous year. Although the number of films released in
With economies of
scale being a prime value driver in the film exhibition space, the film
exhibition segment is expected to witness further consolidation.
Key growth drivers
• Increased multiplex penetration in regional markets
in near term is expected to fuel growth of the regional film industry.
• Increased digitization of single screen theatres
is helping the regional film industry in terms of wider release and the
opportunity to capture theatrical revenues within shorter windows.
• Organized funding is increasingly making its
presence felt in the regional film industry, especially in the south.
• Increased focus on marketing with greater spends
on publicity and distribution, is helping the regional industry reach out to an
increased audience base.
• Improvement in production quality especially in
the southern film industry is attracting a new audience segment, who is willing
to pay a premium for content is better aesthetic value.
Key Sector Challenges
• Poor content: Lack of quality and compelling
content, highlighting the need for more focus on content and scripts.
• Piracy: Piracy continues to be a major concern
for the film industry particularly the Hindi film industry. Technological
advancements such as digitization of film content and delivery have helped
arrest piracy to a great extent. However, a concerted Public Private
Partnership is needed to tackle the deep rooted bane of piracy.
• Access to institutional funds: Individual players
have limited access to institutional funds which makes it difficult for them to
grow beyond their limited means of raising capital for project.
• Talent popularity and perception: Negative change
in the popularity of the leading pair can adversely impact the films business
prospects.
• Rising talent and production costs: it is making
a number of projects unviable. The talent cost in some cases, can constitute
40-60 percent of the total cost of a south Indian language film. Since regional
cinema especially in
• High talent costs: Talent costs continue to
demand a large portion of the overall budget. It is encouraging to see top
talent partner with producers to take a percentage of profits rather than a
stiff upfront fee, which strengthening the overall economics of the film.
• Poor consumer understanding: Despite being an
industry that caters solely to end consumers, the film industry pays limited
attention to understanding changing customer needs. Due to this many players
across the value chain do not segment their intended audience base and do not
reach out to their target audience. Going forward, the industry needs to understand
their customer base and market their offering to the intended audience to
garner better returns.
• Cost inflation: over the last few year costs have
increased dramatically however, the associated revenues have not kept pace with
the cost inflation. Going forward, the industry needs to enhance its production
efficiencies and manage costs, especially talent costs.
• Lack of good scriptwriters: A script serves as
the backbone of the film, if that is weak then no amount of marketing or high
production values may be able to salvage the film. Stale content is one of the
key reasons for the failure of a project. Going forward there needs to be an
industry initiative to better train scriptwriters and place a greater
importance on research and development to enable only quality scripts being
made into films.
• Intellectual Property (IP): Poor enforcement of
intellectual property laws hinders the ability to monetize creative works of
the entire industry.
• Continued reliance on domestic box office as a
revenue source: This not only makes such films risky but also prevents
filmmakers from effectively monetizing their movies to its full potential.
• Competition from Bollywood movies: This poses
another challenge in certain regional markets such as
TV. INDUSTRY:
TV is the largest
segment of the Indian MandE industry with a size of INR 257 billion in 2009.
The industry has transformed itself in the last few years with a reach of
almost 500 million TV viewers. The overall penetration of the TV households has
increased from about 50 percent five years back to about 60 percent now. Hence,
TV remains an attractive medium due to its large reach and potential for
increase in penetration.
During the current
fiscal the company made its best effort to combat recession and aiming to endow
the viewers with a wide variety of fresh and distinctive contents, got produced
three new TV programme contents viz. Kesariya Balam Aavo Hamare Des, Shorr and
Ek Chutki Aasmaan in addition to production of existing popular 09-2010 TV
Programme contents viz. Woh Rehne wali Mehlon ki, Mata Ki Chowki etc. and also
produced programme contents named Retake with Pratibha Advani. The company
generated a revenue of Rs. 15163.14 Lacs during current fiscal as against Rs.
21793.37 Lacs last fiscal witnessing a decline in revenue due to change in
focus i.e. producing low cost contents for TV programme as compared to high
budget programme produced last year..
Television
industry is projected to continue to be the major contributor to the overall
industry revenue pie and is estimated to grow at a healthy rate of 13.0%
cumulatively over the next 5 years, from an estimated Rs. 265.5 billion in
2009. The overall television industry is projected to reach Rs. 488.0 billion
by 2014. In the television pie, television distribution is projected to garner
a share of 60% in 2014 while Television advertising is expected to have 35%
share and Television Content industry have a 5% share. Of the advertising
industry pie, television advertising industry is projected to command a share
of 46.0% in 2014, from a present share of 41.0%.
Some major
happenings in TV Sector during 2009 are as under:
• Advertisement rates reduced due to downturn, but the
volumes increased. There was a 31% increase in television advertisement volume
during 2009 as compared to 2008.
• DTH added close to five million subscribers in
2009 witnessing a growth from nine million in 2008 to close to 14 million in
2009.
• Regional channels are beginning to gain
prominence while the race for Hindi GEC market has heated up.
• IPL was again a big success on the television
garnering big TRPs and huge advertisements
Further the number
of channels has increased from 120 in 2003 to over 460 in 2009. The number of
genres and niches expanded as well with increased presence in news, kids,
infotainment and lifestyle. The industry also saw significant growth in the
number of regional channels. In addition to broadcasting, TV distribution evolved
greatly with the growth of digital mediums and associated offerings to viewers
like Digital cable, DTH and IPTV.
Outlook for the TV Industry
Overall the
industry grew from INR 241 billion in 2008 to INR 257 billion in 2009 recording
a growth rate of 7 percent compared to 14 percent last year. It is expected to
reach a size of INR 521 billion in the next 5 years i.e. by 2014 at a CAGR of
15.2 percent. The growth in advertisement revenues is expected at a rate of
15.6 percent which is marginally higher than the subscription revenues growing
at a rate of 15 percent.
Key challenges and risks
Lack of transparency in sharing of revenues by
distributors
The lack of
transparency in case of analog cable systems has traditionally been a challenge
for the broadcasters. Local Cable Operators (LCOs) still garner almost 75
percent of the subscription revenues due to under declaration of the
subscription numbers, broadcaster gets around 20 percent and MSO gets around 5
percent.
Carriage fee
As per industry
estimates, carriage fee in 2009 was around INR 10000 to 12000 millions, a
reduction compared to 2008. The fee depends on the pull factor of broadcasters
in terms of the kind of content produced, overall popularity of the channel and
the bouquet that the broadcasters provide.
Competition amongst broadcasters leading to drop in
GRPs for channels in the HSMs
The dispersion of
leaders in the Hindi GEC space may impact the ability of all leading channels
to hold ad rates and does dilute their negotiating position vis-ŕ-vis
advertisers. 2009-2010
Increased competition in digital distribution
industry
It is difficult to
increase ARPUs in a scenario of intense competition within the industry. With
six players operating in the DTH sector and increasing competition in the
digital cable industry, the market is witnessing hyper competition.
Measurement systems
Though the current
measurement system in the country captures useful information from 8000 TV households,
the coverage is limited. The system is continuously evolving to cater to the
diversity of the Indian market.
Television broadcasting
Catalysed by the
global economic slowdown, the Indian media and entertainment sector witnessed
its first wave of consolidation in 2009. The downturn had a considerable impact
on corporate spending across media platforms, thus adversely impacting the
Indian advertising industry. The decline in advertisement spending directly
affected the major source of revenues for broadcasters. This led to
considerable pressure on broadcasters, who sought to rationalize their existing
portfolios by focusing on core competencies and exit segments which had
witnessed hyper competition in the preceding period.
FIXED ASSETS :
·
Building
·
Plant and Machinery
·
Furniture and Fixtures
·
Computer
·
Vehicles
·
Shooting Equipment
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.44.72 |
|
|
1 |
Rs.73.47 |
|
Euro |
1 |
Rs.65.38 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
67 |
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.