MIRA
INFORM REPORT
|
Report Date : |
30.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
UTV ENTERTAINMENT TELEVISION LIMITED |
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Formerly Known
As : |
V AND S BROADCASTING PRIVATE LIMITED |
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Registered
Office : |
7th Floor, Building No.11, Solitaire Corporate Park, Guru
Hargovindji Marg, Chakala, Andheri (East), Mumbai-400 093, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of Incorporation
: |
28.04.2007 |
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Com. Reg. No.: |
11-170405 |
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CIN No.: [Company Identification
No.] |
U64200MH2007PLC170405 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMV14871D |
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PAN No.: [Permanent Account No.] |
AACCV4782D |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Global Media and Entertainment Company
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RATING & COMMENTS
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MIRA’s Rating : |
B (29) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 3153000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. There appears
some accumulated losses recorded by the company. However trade relation are reported
as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.
|
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DECLINED BY
Management non co-operative
LOCATIONS
|
Registered Office : |
7th Floor, Building No.11, Solitaire Corporate Park, Guru
Hargovindji Marg, Chakala, Andheri (East), Mumbai-400 093, Maharashtra,
India |
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Tel. No.: |
91-22-40981400 |
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Fax No.: |
91-22-40981650 |
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E-Mail : |
DIRECTORS
As on 10.08.2010
|
Name : |
Mrs.
Zarina Mehta |
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Designation : |
Director |
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Address : |
Flat No.11 and 12, Breach Candy House. 5th
Floor, 68, |
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Date of Birth/Age : |
6.11.1961 |
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Date of Appointment : |
20.04.2007 |
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Other Directorship : |
L72200MH1990PLC056987 UTV Software Communications Limited U51900MH1991PTC062464 Unilazer Exports And Management Consultants Limited U64201MH2006PLC166426 UTV Broadcasting Limited U92142MH2007PLC167974 Genx Entertainment Limited |
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Name : |
Mr.
Rohinton Screwvala |
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Designation : |
Director |
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Address : |
Flat No.11 and 12, Breach Candy House. 5th
Floor, 68, |
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Date of Birth/Age : |
08.09.2010 |
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Date of Appointment : |
28.04.2007 |
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Other Directorship : |
L72200MH1990PLC056987 UTV Software Communications Limited U51900MH1991PTC062464 Unilazer Exports and Management Consultants Limited U64201MH2006PLC166426 UTV Broadcasting Limited U92142MH2007PLC167974 Genx Entertainment Limited |
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Name : |
Mr. Deven Khote |
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Designation : |
Director |
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Address : |
Ashoka
Apartment, 1st Floor, |
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Date of Birth/Age : |
05.04.1962 |
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Date of Appointment : |
19.07.2007 |
KEY EXECUTIVES
|
Name : |
Mr.
Puneet Juneja |
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Designation : |
Company
Secretary |
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Address : |
303,
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Date of Birth/Age : |
23.09.1979 |
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Date of Appointment : |
28.04.2010 |
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Name : |
Mr. Kunal Mukherjee |
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Designation : |
AVP - Marketing |
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Name : |
Mr. Shantonu Aditya |
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Designation : |
Chief Executive Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 10.08.2010
|
Names of Shareholders (Equity Shares) |
|
No. of Shares |
|
UTV Global Broadcasting Limited, |
|
5573994 |
|
Rohinton Screwala |
|
1 |
|
Zarina Mehta |
|
1 |
|
Jignesh Kenia |
|
1 |
|
Mohd. Sajid Ali |
|
1 |
|
Jyotsna Tandel |
|
1 |
|
Amit Banka |
|
1 |
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Total |
|
5574000 |
|
Names of Shareholders (Preference Shares) |
|
No. of Shares |
|
UTV Global Broadcasting Limited, |
|
890000 |
|
Total |
|
890000 |
As on 10.08.2010
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Bodies
corporate |
|
100.00 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Global Media and Entertainment Company |
GENERAL INFORMATION
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No. of Employees : |
Information declined by the management |
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Bankers : |
Not available |
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Facilities : |
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Banking
Relations : |
-- |
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Financial Institution: |
Sicom Limited, |
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Auditors : |
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Name : |
Price Waterhouse and Company Chartered Accountants |
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Ultimate Holding Company : |
UTV Software Communications Limited |
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Holding Company : |
UTV Global Broadcasting Limited, |
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Fellow Subsidiaries : |
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Other related parties where common control exists : |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
9550000 |
Equity Shares |
Rs.10/- each |
Rs.95.500 millions |
|
1500000 |
Preference Shares |
Rs.10/- each |
Rs.15.000 millions |
|
|
Total |
|
Rs.110.500
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5574000 |
Equity Shares |
Rs.10/- each |
Rs.55.740
millions |
|
890000 |
1% Non Cumulative, Convertible and/or Redeemable Preference Shares |
Rs.10/- each |
Rs.8.900
millions |
|
|
Total |
|
Rs.64.640 millions |
Notes:
i. On December 30,
2009, The Company has increased its Authorised Equity Share Capital from Rs.10.000
millions to Rs.11.050 millions and further reclassified 6,000,000 Preference
Shares into 6,000,000 Equity Shares of Rs.10 each.
ii. On December
30, 2009, 5,000,000 Equity Shares of Rs.10 each were issued to UTV Global Broadcasting
Limited on conversion of 5,000,000 Zero coupon Convertible Preference Shares of
Rs.10 each.
iii. On February
10, 2010, 1,500,000 Authorised Equity Shares of Rs. 10 each were reclassified
to 1,500,000 Authorised Preference Shares of Rs.10 each.
iv. On February
10, 2010, 524,000 equity shares of Rs 10 each at a premium of Rs.2290 per
Equity share and 8,90,000,1% Non Cumulative, Convertible and/or Redeemable
Preference Shares of Rs.10 each were issued to UTV Global Broadcasting Limited
in lieu of part of the Unsecured Loan.
v. The Preference
Shares were issued on 10th February 2010 to UTV Global Broadcasting
Limited and are convertible and/or redeemable at later date and such terms and
conditions as may be mutually agreed by the Board of Directors of the Company
and UTV Global Broadcasting Limited.
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 |
64.640 |
50.500 |
50.500 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2288.060 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
(1564.477) |
(1919.569) |
(1098.895) |
|
|
NETWORTH |
788.223 |
(1869.069) |
(1048.395) |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
499.305 |
190.290 |
|
|
2] Unsecured Loans |
218.800 |
1950.000 |
505.800 |
|
|
TOTAL BORROWING |
218.800 |
2449.305 |
696.090 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1007.023 |
580.236 |
(352.305) |
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
36.907 |
41.686 |
41.793 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
380.000 |
380.000 |
0.000 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
178.593
|
164.828 |
0.000 |
|
|
Sundry Debtors |
552.661
|
276.407 |
6.138 |
|
|
Cash & Bank Balances |
15.909
|
10.418 |
189.972 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
208.309
|
144.430 |
73.678 |
|
Total
Current Assets |
955.472
|
596.083 |
269.788 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
312.076 |
397.597 |
603.755 |
|
|
Other Current Liabilities |
50.656
|
37.412 |
58.833 |
|
|
Provisions |
2.624
|
2.524 |
1.298 |
|
Total
Current Liabilities |
365.356
|
437.533 |
663.886 |
|
|
Net Current Assets |
590.116
|
158.550 |
(394.098) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1007.023 |
580.236 |
(352.305) |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales and Services |
1164.105 |
718.290 |
5.462 |
|
|
|
Other Income |
16.368 |
0.216 |
1.000 |
|
|
|
TOTAL (A) |
1180.473 |
718.506 |
6.462 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Direct Cost |
688.116 |
1573.702 |
823.918 |
|
|
|
Staff Cost |
48.838 |
88.450 |
41.160 |
|
|
|
Office Expenses |
66.730 |
144.451 |
224.298 |
|
|
|
TOTAL (B) |
803.684 |
1806.603 |
1089.376 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
376.789 |
(1088.097) |
(1082.914) |
|
|
|
|
|
|
|
|
|
Less |
INTEREST &
FINANCIAL EXPENSES (D) |
16.367 |
104.235 |
7.947 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
360.422 |
(1192.332) |
1090.861 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
5.330 |
7.434 |
7.792 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
355.092 |
(1199.766) |
(1098.653) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
(379.092) |
0.242 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
355.092 |
(820.674) |
(1098.895) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(1919.569) |
(1098.895) |
0.000 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(1564.477) |
(1919.569) |
(1098.895) |
|
|
|
|
|
|
|
|
|
|
EXPORT VALUE |
Nil
|
1.000 |
Nil
|
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
IRD Boxes and Smart Card |
-- |
2.062 |
1.758 |
|
|
TOTAL IMPORTS |
-- |
2.062 |
1.758 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
257 |
(16413) |
(21978) |
|
|
|
Diluted |
236 |
(16413) |
(21978) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
30.08
|
(114.22) |
(17005.49) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
30.05
|
(167.03) |
(20114.48) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
35.78
|
(188.12) |
(407.23) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.45
|
0.64 |
1.05 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.74
|
1.54 |
1.30 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.62
|
1.36 |
0.41 |
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
31.03.2010 (Rs. in millions) |
31.03.2009 (Rs. in millions) |
31.03.2008 (Rs. in millions) |
|
Sundry Creditors for Capital Goods, Materials and Expenses |
|
|
|
|
- Micro and Small Enterprises |
-- |
-- |
-- |
|
- Others |
312.076 |
397.597 |
603.755 |
Note:
Registered office of the company has been shifted from Parijaat House,
1076 Dr. E Moses Road, Worli Naka, Mumbai - 400 018, Maharashtra to the
present address w.e.f.15.05.2010
BACKGROUND OF THE
COMPANY
The Company was
incorporated in
BUSINESS OVERVIEW
The Company owns
and operates two channels namely ‘UTV Movies’ and “World Movies’.
UTV Movies caters to one of the biggest entertainment genres on Indian Television -
Hindi movies. While it has access to an enviable slate of movies from the UTV
library which includes the biggest blockbusters, it has also acquired movies
from multiple companies across
World Movies is the first channel of its kind which brings International cinema to
Indian television for the first time. World Movies has acquired International
blockbusters in varied languages like Italian, French, German, Spanish, Polish,
Japanese, Korean, Chinese and many more. Today the channel is a brand that
covers four major verticals – Television, Theatrical, DVD and Print with a
magazine that goes out to audiences interested in World Cinema.
FURTHER ISSUE OF
SHARES
Pursuant to the
approval of the Board of Directors and shareholders of the Company, on February
10, 2010, the Unsecured Loan from UTV Global Broadcasting Limited, the holding
company amounting to Rs.3252.200 millions was converted against issue of
5,24,000 equity shares of Rs.10/- each at an issue price of Rs.2,300/- at a
premium of Rs.2,290/- per equity share and 8,90,000 1% Non Cumulative,
Convertible and/or Redeemable Preference Shares (“Preference Shares”) of
Rs.10/- each at an issue price of Rs. 2,300/- each including a premium of
Rs.2,290/-.
FINANCIAL
RESTRUCTURING
The Company
undertook a financial restructuring exercise through a Scheme of Arrangement
between the Company and its respective shareholders and creditors under section
391 to 394 read with section 78 and 100 to 103 of the Companies Act, 1956(“Act”)
(“Scheme”), with a view to reflect the true value of the identified assets as
appearing in the balance sheet, which were not represented by the share capital
as they had diminished in value. The Scheme was approved by the Board of
Directors of the Company on February 15, 2010 and was subsequently sanctioned
by the Honorable High Court of Bombay vide its order dated 9th June 2010. In
accordance with the Scheme, a separate reserve account titled as Business
Reconstruction Reserve (“BRR”) has been created on 10th February
2010 by transferring Rs.950.000 millions from the balance standing to the
credit of Securities Premium Account of the Company for adjustment of certain
expenses as per the Scheme.
Bankers Charges
Report as per Registry
|
Corporate
identity number of the company |
U64200MH2007PLC170405 |
|
Name of the
company |
UTV ENTERTAINMENT
TELEVISION LIMITED |
|
Address of the
registered office or of the principal place of business in |
7th Floor, Building No.11, Solitaire Corporate Park, Guru
Hargovindji Marg, Chakala, Andheri (East), Mumbai-400 093, Maharashtra,
India |
|
This form is for |
Creation of
charge |
|
Type of charge |
Others Present and
Future Content Library |
|
Particular of
charge holder |
Sicom Limited, |
|
Nature of
description of the instrument creating or modifying the charge |
Deed of Hypothecation
dated 6th July 2009 executed in favour of SICOM Limited, lender creating
charge on assets of the Company for Inter Corporate Deposit taken by UTV
Software Communications Limited, Ultimate Holding Company. |
|
Date of
instrument Creating the charge |
06.07.2009 |
|
Amount secured by
the charge |
Rs.500.000
millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest Rate of interest on
Inter-Corporate Deposit to UTV Software communications Limited, ultimate
parent company at 16.55% Terms of
Repayment The Inter-
Corporate deposit given to UTV Software Communications Limited shall be
repayable in single installment at the end of six months from the date of
first disbursement. Margin NIL Extent and
Operation of the charge First Pari passu
charge on the Content Library of Company which includes following: (a)Acquired Hindi
and Hindi dubbed movies; and (b)Acquired International
movies. |
|
Short particulars
of the property charged |
Hypothecation by
way of first pari passu charge on present and future content library of
Company |
FIXED ASSETS:
Tangible Assets
·
Plant and Machinery
·
Furniture and Fixtures
·
Computers
·
Office Equipments
·
Leasehold Improvements
Intangible Assets
·
Computer Software
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.44.67 |
|
|
1 |
Rs.71.63 |
|
Euro |
1 |
Rs.63.09 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
29 |
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.