MIRA
INFORM REPORT
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Report Date : |
02.05.2011 |
Note : Given address could not be confirmed
IDENTIFICATION DETAILS
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Name : |
EROS INTERNATIONAL MEDIA LIMITED [w.e.f. 16.09.2009] |
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Formerly Known
As : |
EROS INTERNATIONAL MEDIA PRIVATE LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
19.08.1994 |
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Com. Reg. No.: |
11-080502 |
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CIN No.: [Company Identification
No.] |
U92110MH1994PLC080502 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMB04686D |
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PAN No.: [Permanent Account No.] |
AAACR2148H |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Subject is engaged in the purchase and sale of film Distribution rights for Hindi and Indian regional
language films and also for co-production activities. |
RATING & COMMENTS
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MIRA’s Rating : |
A (62) |
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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 6540000 |
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Status : |
Good |
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Payment Behavior : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is well established and reputed company having fine track.
Financial position of the company appears to be sound. Trade relations are reported
as fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered good for normal 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
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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
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Name : |
Mr. Rajesh Bhatia |
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Designation : |
Financial Controller and Company Secretary |
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Date : |
27.04.2011 |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-22-40538500 |
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E-Mail : |
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Website : |
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Corporate Office : |
Second Floor, |
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Tel. No.: |
91-22-40538500 |
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Fax No.: |
91-22-40538540 |
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E-Mail : |
DIRECTORS
As on 27.05.2010
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Name : |
Mr. Naresh Chandra |
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Designation : |
Additional Director |
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Address : |
C4/4053, Vasant Kunj, |
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Date of Birth/Age : |
01.08.1934 |
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Date of Appointment : |
28.09.2009 |
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DIN : |
00015833 |
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Name : |
Mr. Shankar Nath Acharya |
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Designation : |
Additional Director |
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Address : |
S-523 A, 2nd Floor, Greater Kailash II, |
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Date of Birth/Age : |
21.10.1945 |
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Date of Appointment : |
01.11.2009 |
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DIN : |
00033242 |
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Name : |
Mr. Sunil Arjan Lulla |
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Designation : |
Director |
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Address : |
Plot NO.172, Omkar, |
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Date of Birth/Age : |
29.06.1964 |
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Date of Appointment : |
19.08.1994 |
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DIN : |
00243191 |
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Name : |
Ms. Jyoti Deshpande |
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Designation : |
Additional Director |
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Address : |
16, |
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Date of Birth/Age : |
16.12.1970 |
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Date of Appointment : |
28.09.2009 |
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DIN : |
02303283 |
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Name : |
Mr. Kishore Lulla |
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Designation : |
Additional Director |
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Address : |
HIghcroft, Totteridge Common, |
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Date of Birth/Age : |
04.09.1961 |
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Date of Appointment : |
28.09.2009 |
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DIN : |
02303295 |
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Name : |
Mr. Dhirendra Swarup |
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Designation : |
Additional Director |
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Address : |
A-9 / 13B, Vasant Vihar, |
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Date of Birth/Age : |
05.12.1944 |
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Date of Appointment : |
10.02.2010 |
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DIN : |
02878434 |
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Name : |
Mr. Vijay Mohandas Ahuja |
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Designation : |
Additional Director |
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Address : |
10 Draycott, #07-07 Draycott 8, |
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Date of Birth/Age : |
02.04.1957 |
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Date of Appointment : |
10.02.2010 |
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DIN : |
02966514 |
KEY EXECUTIVES
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Name : |
Mr. Rajesh Dwarkadas Bhatia |
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Designation : |
Secretary |
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Date of Appointment : |
16.12.2009 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2010
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Names of Shareholders |
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No. of Shares |
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Eros Digital Private Limited |
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21700000 |
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Eros Worldwide FZ LLC |
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49700000 |
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Sunil Lulla |
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1400 |
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Krishika Lulla |
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1400 |
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Arjan Lulla |
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1400 |
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Meena Lulla |
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1400 |
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Nitu Lulla |
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1400 |
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Total |
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71407000 |
As on 27.05.2010
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Category |
Percentage |
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Bodies corporate |
99.99 |
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Directors or relatives of Directors |
0.01 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in the purchase and sale of film Distribution rights for Hindi and Indian
regional language films and also for co-production activities. |
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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Auditors : |
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Name : |
Walker Chandiok and Company [Khushroo B Panthaky] Chartered Accountant |
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Address : |
Engineering Centre, 6th Floor, 9, |
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Tel. No.: |
91-22-23671623 |
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Fax No.: |
91-22-23671624 |
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E-Mail : |
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Holding Company : |
Eros Worldwide FZ LLC |
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Subsidiary Companies : |
Eros International Films Private Limited CIN : U92113MH1994PTC080423 Eros Music Publishing Private Limited CIN : U92140MH2008PTC178628 Eyeqube Studios Private Limited CIN : U92120MH2007PTC175027 Big Screen Entertainment Private Limited CIN : U92110MH2005PTC156504 Eros Animation Private Limited CIN : U92100MH2008PTC186402 Ayngaran International Media Private Limited CIN : U92100TN2007PTC072223 Ayngaran Anak Media Private Limited CIN : U92100TN2008PTC069493 Ayngaran International Limited Ayngaran International ( Copsale Limited Ayngaran International ( |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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125,000,000 |
Equity Shares |
Rs.10/-each |
1250.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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71,407,000 |
Equity Shares |
Rs.10/-each |
714.070 millions |
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Of the above :
- 66.306.500 (previous year Nil) equity shares were allotted as fully
paid up bonus shares by capitalization of the surplus in the profit and loss
account of the company.
- 5,000,000 equity shares were allotted for consideration other than
cash in the financial year 1999-00 towards assignment and transfer of the
assets and liabilities of a partnership firm.
-4970,000 (Previous ]rear 3,550,000) and 2,170,000 (Previous yr 3,350,000)
equity shares are held by Eros Worldwide, FZE, the holding company and its
subsidiary, Eros Digital Private Limited respectively
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
714.070 |
51.000 |
51.000 |
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2] Stock Options Outstanding |
13.372 |
0.000 |
0.000 |
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3] Reserves & Surplus |
907.834 |
1055.289 |
577.584 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1635.276 |
1106.289 |
628.584 |
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LOAN FUNDS |
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1] Secured Loans |
1690.364 |
1220.289 |
1183.158 |
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2] Unsecured Loans |
0.000 |
0.378 |
1.175 |
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TOTAL BORROWING |
1690.364 |
1220.667 |
1184.333 |
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DEFERRED TAX LIABILITIES |
485.268 |
259.558 |
85.571 |
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TOTAL |
3810.908 |
2586.514 |
1898.488 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2028.881 |
1491.433 |
924.734 |
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Capital work-in-progress |
2.765 |
0.000 |
0.000 |
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INVESTMENT |
204.061 |
204.061 |
9.459 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
23.557
|
617.567 |
397.483 |
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Sundry Debtors |
802.117
|
781.460 |
775.170 |
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Cash & Bank Balances |
1006.158
|
324.575 |
1100.481 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
3181.166
|
4360.116 |
3332.844 |
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Total
Current Assets |
5012.998
|
6083.718 |
5605.978 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
444.523
|
281.390 |
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Other Current Liabilities |
2907.551
|
4913.241 |
4633.142 |
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Provisions |
86.303
|
9.586 |
8.541 |
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Total
Current Liabilities |
3438.377
|
5204.217 |
4641.683 |
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Net Current Assets |
1574.621
|
879.501 |
964.295 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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Foreign Currency Monetary Translation Difference AC |
0.580 |
11.519 |
0.000 |
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TOTAL |
3810.908 |
2586.514 |
1898.488 |
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PROFIT & LOSS
ACCOUNT
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|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
5345.657 |
4787.786 |
4234.976 |
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Other Income |
129.419 |
8.292 |
152.831 |
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TOTAL (A) |
5475.076 |
4796.078 |
4387.807 |
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Less |
EXPENSES |
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|
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Operating Expenses |
3988.935 |
3384.874 |
3349.071 |
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Employee Remuneration and other benefits |
105.163 |
72.592 |
62.463 |
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|
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Administrative and other Expenses |
493.635 |
582.394 |
398.336 |
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TOTAL (B) |
4587.733 |
4039.860 |
3809.870 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
887.343 |
756.218 |
577.937 |
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Less |
FINANCIAL
EXPENSES (D) |
64.347 |
3.185 |
23.951 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
822.996 |
753.033 |
553.986 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
20.001 |
22.324 |
14.808 |
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PROFIT BEFORE
TAX (E-F) (G) |
802.995 |
730.709 |
539.178 |
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Less |
TAX (I) |
287.385 |
251.688 |
194.450 |
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PROFIT AFTER TAX
(G-I) (J) |
515.610 |
479.021 |
344.728 |
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BALANCE CARRIED
TO THE B/S |
515.610 |
479.021 |
344.728 |
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EARNINGS IN
FOREIGN CURRENCY |
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|
|
|
|
FOB Value of Exports |
2858.595 |
2734.493 |
-- |
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TOTAL EARNINGS |
2858.595 |
2734.493 |
NA |
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IMPORTS |
|
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|
Purchase of Film/ Serial Rights |
8.020 |
64.440 |
-- |
|
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|
Purchase of Beta Tapes |
0.243 |
0.295 |
-- |
|
|
|
Purchase of DVD’s |
0.343 |
0.271 |
-- |
|
|
|
Purchase of Software |
0.000 |
0.152 |
-- |
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|
TOTAL IMPORTS |
8.606 |
65.158 |
NA |
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|
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|
Earnings Per
Share (Rs.) |
7.22 |
6.71 |
-- |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
9.42
|
9.99 |
7.86 |
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|
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|
Net Profit Margin (PBT/Sales) |
(%) |
15.02
|
15.26 |
12.73 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
11.40
|
9.65 |
8.26 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.49
|
0.66 |
0.86 |
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Debt Equity Ratio (Total Liability/Networth) |
|
3.14
|
5.81 |
9.27 |
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Current Ratio (Current Asset/Current Liability) |
|
1.46
|
1.17 |
1.21 |
LOCAL AGENCY FURTHER INFORMATION
Sundry Creditors :
(Rs.in million)
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
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Sundry Creditors |
444.523
|
281.390 |
NA |
|
|
|
|
|
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Total |
444.523 |
281.390 |
NA |
Bankers Charges
Report as per Registry
|
Corporate
identity number of the company |
U92110MH1994PTC080502 |
|
Name of the
company |
EROS
INTERNATIONAL MEDIA PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in |
Kailash Plaza2nd
Floor, Plot No. 12, Off |
|
This form is for |
Modification
of Charge |
|
Charge
identification (ID) number of the charge to be modified |
10087143 |
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Type of charge |
|
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Particular of charge
holder |
Union Bank of India, IFB, 1st Floor, Union Bank Bhavan,
239, Vidhan Bhavan Marg, Nariman Point, Mumbai – 400021, Maharashtra, India |
|
Nature of
instrument creating charge |
Composite
Hypothecation Agreement |
|
Date of instrument
Creating the charge |
24.09.2009 |
|
Amount secured by
the charge |
Rs.554.000
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest
- As stipulated by and with the Bank from time to time. Terms of
Repayment - As stipulated by and with the Bank from time to time. Margin - As
applicable. Extent and
Operation of the charge - The Bank is having first pari passu charge on the security,
as described in sr. no. 15, given by the Company. |
|
Short particulars
of the property or asset(s) charged (including complete address and location
of the property) |
A) films, movies,
television serials, publicity materials and other similar material together
with its free television / merchandising / theatrical / non theatrical /
publishing / satellite television / ship / subscription television / surface
transport / television / video gram / DVD rights and intended for
entertainment / commercial / non commercial exploitation by the borrower. B)
all the stocks of DVDs / VCDs and the present and future book debts,
operating cash flows, o/s monies, receivables, claims, arising out of sale of
rights of the borrower. C) Assignment in favor of the bank of all actionable
claims arising out of sale of rights of the borrower and whatsoever rights to
the films t/with the copyrights in the publicity material D) Assignment of
all the proceeds of all policies of insurance now or in the future taken out
by the borrower in respect of the films and / or rights and the benefit of
all options and rights devolving upon the borrower under any such policy of
the insurance which shall accrue to the bank. E) Hypothecation by way of
first charge on all movable property including movable goods / equipment and
F) hypothecation by way of first charge on all its vehicles. |
|
Particulars of
the present modification |
By present
modification, the existing charge of Rs.250.000 millions enhanced to
Rs.554.000 millions against the security |
FIXED ASSETS :
- Building
- Studio Equipment
- Data Processing Equipment
- Office Equipment
- Furniture and Fixture
- Motor Vehicles
- 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.44.38 |
|
|
1 |
Rs.73.87 |
|
Euro |
1 |
Rs.65.83 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
62 |
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.