|
Report Date : |
31.08.2012 |
IDENTIFICATION DETAILS
|
Name : |
NATIONAL FILM DEVELOPMENT CORPORATION LIMITED |
|
|
|
|
Registered
Office : |
Discovery of India Building, 6th Floor, Nehru Center, Dr.
Annie Besant Road, Worli, Mumbai – 400018, Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
01.05.1975 |
|
|
|
|
Com. Reg. No.: |
11-022994 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.453.999 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U92100MH1975GOI022994 |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Distribution of Film, Production of Films etc. |
|
|
|
|
No. of Employees
: |
104 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (47) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 500000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a government of India company It is an established company having satisfactory track. There appears
some accumulated losses recorded by the company. However, trade relations are
reported as fair. Business is active. Payments are reported to be usually
correct and as per commitments. Since it is a government company 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.
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country’s growth, which has averaged more than 7% per
year since 1997. India’s diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India’s output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to become
a major exporter of information technology services and software workers. In
2010, the Indian economy rebounded robustly from the global financial crisis –
in large part because of strong domestic demand – and growth exceeded 8%
year-on-year in real terms. However, India’s economic growth in 2011 slowed
because of persistently high inflation and interest rates and little progress
on economic reforms. High international crude prices have exacerbated the
government’s fuel subsidy expenditures contributing to a higher fiscal deficit,
and a worsening current account deficit. Little economic reform took place in
2011 largely due to corruption scandals that have slowed legislative work.
India’s medium-term growth outlook is positive due to a young population and
corresponding low dependency ratio, healthy savings and investment rates, and
increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION PARTED BY
|
Name : |
Mr. C. P. Gupta |
|
Designation : |
Deputy General Manager in Finance |
|
Contact No.: |
91-9967084831 |
|
Date : |
30.08.2012 |
LOCATIONS
|
Registered/ Head Office : |
Discovery of India Building, 6th Floor, Nehru Center, Dr.
Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India |
|
Tel. No.: |
91-22-66288288/ 24949856/ 24945336 |
|
Mobile No.: |
91-9967084831 (Mr. C. P. Gupta) |
|
Fax No.: |
91-22-24945336 |
|
E-Mail : |
|
|
Website : |
|
|
Location : |
Owned |
|
|
|
|
Branch Office : |
Thiruvananthapuram |
|
Tel. No.: |
91-471-2323854 |
|
Fax No.: |
91-471-2323854 |
|
E-Mail : |
|
|
|
|
|
Regional Office : |
Located at: · Kolkata · New Delhi · Chennai |
DIRECTORS
(AS ON 24.09.2011)
|
Name : |
Mr. Ramesh Sippy |
|
Designation : |
Part Time Chairman |
|
|
|
|
Name : |
Mr. Nina Lath Gupta |
|
Designation : |
Managing Director |
|
Address : |
11, Sputnik, 85 Warden Road, Mumbai – 400036, Maharashtra, India |
|
Date of Birth/Age : |
06.08.1965 |
|
Date of Appointment : |
17.4.2006 |
|
DIN No.: |
00350722 |
|
|
|
|
Name : |
Mr. Sahab Narain |
|
Designation : |
Director (Finance) (From 26.10.2010) |
|
Date of Appointment : |
23.09.2010 |
|
DIN No.: |
03641879 |
|
|
|
|
Name : |
Mr. D. P. Reddy |
|
Designation : |
Director, Joint Secretary (Films) Ministry of Information and
Broadcasting |
|
Address : |
D-1, 25 Ravindra Nagar, Near Khan Market, Delhi – 110003, India |
|
Date of Birth/Age : |
10.12.1958 |
|
Date of Appointment : |
17.02.2010 |
|
|
|
|
Name : |
Mr. Jawahar Lal Wattal |
|
Designation : |
Non Official Part-time Director |
|
|
|
|
Name : |
Mr. A. K. Bir |
|
Designation : |
Non Official Part-time Director |
|
|
|
|
Name : |
Ms. Dipali Khanna |
|
Designation : |
Director |
|
Address : |
550, A Wing, Shastri Bhavan, Delhi- 110001, India |
|
Date of Appointment : |
10.07.2009 |
KEY EXECUTIVES
|
Name : |
Mr. G. G. Kamei |
|
Designation : |
General Manager (Delhi) |
|
|
|
|
Name : |
Mr. Vikramjit Roy |
|
Designation : |
General Manager (Film Production) |
|
|
|
|
Name : |
Mr. N K Vyas |
|
Designation : |
Dy. General Manager (Personnel and Administration) |
|
|
|
|
Name : |
Mrs. Usha Nair |
|
Designation : |
Dy. General Manager (Kolkata) |
|
|
|
|
Name : |
Mr. D. Ramakrishnan |
|
Designation : |
Dy. General Manager (Chennai) |
|
|
|
|
Name : |
Mr. Rajeh Das |
|
Designation : |
Consultant (Domestic Distribution) |
|
|
|
|
Name : |
Mr. MNA Setty |
|
Designation : |
Manager (Delhi) |
|
|
|
|
Name : |
Mr. P. P. Math |
|
Designation : |
Manager (Film Production) |
|
|
|
|
Name : |
Mr. E. J. Paul |
|
Designation : |
Company Secretary and Manager (Finance and Accounts) |
|
|
|
|
Name : |
Mr. R. Harish |
|
Designation : |
Manager (Legal/CPIO/RTI) |
|
|
|
|
Name : |
Mr. Raja Chhinal |
|
Designation : |
Manager (Overseas Distribution/Exports) |
|
|
|
|
Name : |
Ms. Dipali Khanna |
|
Designation : |
Additional Secretary and financial Advisor Information and
Broadcasting Ministry |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 24.09.2011)
|
Names of Shareholders |
|
No. of Shares |
|
|
|
|
|
President of India |
|
4539983 |
|
Nina Latha Gupta |
|
1 |
|
D P Reddy |
|
1 |
|
|
|
|
|
Total |
|
4539985 |
(AS ON 30.09.2011)
Equity Shares Break – up
|
Category |
|
Percentage |
|
|
|
|
|
Government (Central and State) |
|
100.00 |
|
|
|
|
|
Total
|
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Distribution of Film, Production of Films etc. |
||||||||||
|
|
|
||||||||||
|
Products : |
|
||||||||||
|
|
|
||||||||||
|
Terms : |
|
||||||||||
|
Selling : |
Cash and Credit |
||||||||||
|
|
|
||||||||||
|
Purchasing : |
Cash and Credit |
GENERAL INFORMATION
|
Customers : |
Corporate Government |
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
No. of Employees : |
104 (Approximately) |
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
Bankers : |
· HDFC Bank Limited Mumbai, Maharashtra, India · State Bank of India Mumbai, Maharashtra, India · Corporation Bank Mumbai, Maharashtra, India · IDBI Bank Mumbai, Maharashtra, India · State Bank of India · Indian Bank · Punjab National Bank · Yes Bank |
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
Facilities : |
|
|||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
K. S. Iyer and Company Chartered Accountant |
|
Address : |
Mumbai, Maharashtra, India |
|
PAN No.: |
|
|
|
|
|
Name : |
P. D. Dalal and Company Chartered Accountant |
|
Address : |
C-42/N-4, Amar Jyoti Co-operative Housing Society, Mahatma Gandhi Memorial Complex, Sector – 14, Vashi, New Mumbai – 400705, Maharashtra, India |
|
PAN No.: |
|
|
|
|
|
Other Related Party: |
· National Film Development Corporation Limited |
CAPITAL STRUCTURE
(AS ON 31.03.2011)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4540000 |
Equity Shares |
Rs.100/- each |
Rs.454.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4539985 |
Equity Shares |
Rs.100/- each |
Rs.453.999
Millions |
|
|
|
|
|
NOTE:
a) 1,25,000 Shares
are allotted consequent upon the amalgamation of Indian Motion Picture Export
Corporation Limited and Film Finance Corporation Limited with the company
pursuant to the order of the Ministry of law, Justice and company affairs,
without payment received in cash.
b) 1,00,000 shares
are allotted in conversion of Government loan and interest accrued thereon into
share capital.
c) 28,40,000
shares are allotted in conversion of Government loan and interest accrued
thereon into share capital.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
453.999 |
139.999 |
139.999 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.233 |
0.233 |
0.233 |
|
|
4] (Accumulated Losses) |
(330.676) |
(347.539) |
(276.221) |
|
|
NETWORTH |
123.556 |
(207.307) |
(135.989) |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
44.821 |
|
|
2] Unsecured Loans |
0.000 |
263.809 |
233.995 |
|
|
TOTAL BORROWING |
0.000 |
263.809 |
278.816 |
|
|
DEFERRED GOVERNMENT GRANT |
69.630 |
67.133 |
21.355 |
|
|
|
|
|
|
|
|
TOTAL |
193.186 |
123.635 |
164.182 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
47.689 |
34.797 |
37.048 |
|
|
Capital work-in-progress |
2.886 |
1.135 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4.717
|
4.622 |
17.560 |
|
|
Sundry Debtors |
924.460
|
387.298 |
71.136 |
|
|
Cash & Bank Balances |
808.037
|
274.703 |
215.439 |
|
|
Other Current Assets |
3.293
|
1.171 |
4.377 |
|
|
Loans & Advances |
253.792
|
107.125 |
88.585 |
|
Total
Current Assets |
1994.299
|
774.919 |
397.097 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
1376.776
|
453.600 |
150.986 |
|
|
Other Current Liabilities |
438.073
|
193.321 |
114.543 |
|
|
Provisions |
38.615
|
40.295 |
37.111 |
|
Total
Current Liabilities |
1853.464
|
687.216 |
302.640 |
|
|
Net Current Assets |
140.835
|
87.703 |
94.457 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
Voluntary Retirement Scheme expenses |
0.000 |
0.000 |
32.677 |
|
|
Preliminary expense |
1.776 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
193.186 |
123.635 |
164.182 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Grant in Aid for regional Film Production |
6.240 |
48.889 |
0.000 |
|
|
|
Commission on Regional Film Production |
0.624 |
4.889 |
0.000 |
|
|
|
Commissioned Production |
88.977 |
74.702 |
17.582 |
|
|
|
Media Campaign for Govt. Depts |
1623.252 |
440.001 |
0.000 |
|
|
|
Distribution of films |
40.051 |
30.215 |
75.996 |
|
|
|
Service Projects |
53.343 |
47.066 |
50.242 |
|
|
|
Other Income |
37.482 |
36.286 |
29.273 |
|
|
|
TOTAL (A) |
1849.969 |
682.048 |
173.093 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Grant in Aid for regional Film Production |
6.240 |
48.884 |
0.000 |
|
|
|
Commissioned Production |
74.533 |
56.135 |
11.940 |
|
|
|
Media Campaign for Govt. Depts |
1552.746 |
431.058 |
0.000 |
|
|
|
Expenditure in respect of distribution of films |
28.217 |
19.453 |
50.586 |
|
|
|
Service Projects |
36.738 |
30.925 |
40.929 |
|
|
|
Personnel Expenses |
41.389 |
44.458 |
57.430 |
|
|
|
Administrative Expense |
40.249 |
32.014 |
25.264 |
|
|
|
Admirtisation of cost of feature film |
0.000 |
12.301 |
9.752 |
|
|
|
Amortisation of VRS Expense |
42.601 |
30.735 |
41.662 |
|
|
|
Bad Debts Written off |
0.000 |
15.274 |
0.000 |
|
|
|
Provision for doubtful debts/ loans/ advances |
2.834 |
0.413 |
1.112 |
|
|
|
Preliminary Expenses |
0.444 |
0.000 |
0.335 |
|
|
|
TOTAL (B) |
1825.991 |
721.650 |
239.010 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
23.978 |
(39.602) |
(65.917) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.313 |
30.068 |
29.458 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
23.665 |
(69.670) |
(95.375) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
8.131 |
7.297 |
7.592 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
15.534 |
(76.967) |
(102.967) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.000 |
5.325 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
15.534 |
(76.967) |
(108.292) |
|
|
|
|
|
|
|
|
|
|
Prior Year
Adjustment |
(0.458) |
(1.737) |
(2.970) |
|
|
|
|
|
|
|
|
|
Add |
Expenses
provision for Doubtful debt/ Loan and Advances |
0.000 |
7.386 |
0.005 |
|
|
Add |
Gratuity / Leave
encashment |
1.788 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(347.539) |
(276.221) |
(164.964) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(330.675) |
(347.539) |
(276.221) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export on goods/rights calculated on FOB basis |
20.008 |
12.635 |
23.680 |
|
|
TOTAL EARNINGS |
20.008 |
12.635 |
23.680 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Components and Spares Parts |
0.000 |
0.248 |
0.000 |
|
|
TOTAL IMPORTS |
0.000 |
0.248 |
0.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
3.71 |
(50.94) |
(79.47) |
|
|
|
Diluted |
3.71 |
(50.94) |
(79.47) |
|
|
Particulars |
|
|
31.03.2012 |
|
Sales Turnover (Approximately) |
|
|
2550.000 |
|
|
|
|
|
Expected Sales (2012-13): Rs.4000.000 Millions
The above information has been parted by Mr. C. P. Gupta.
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
0.84
|
(11.28) |
(59.49) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.86
|
(11.92) |
(71.59) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.76
|
9.51 |
23.72 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.37 |
0.76 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
15.00
|
(4.59) |
(4.28) |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.08
|
1.13 |
1.31 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS:
|
Particulars |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
(Rs. In Millions) |
||
|
|
|
|
|
|
Sundry Creditors |
1376.776
|
453.600 |
150.986 |
|
|
|
|
|
|
Total |
1376.776
|
453.600 |
150.986 |
|
Sr. No. |
Check List by Info Agents |
Available in Report (Yes
/ No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
----- |
|
14] |
Estimation for coming financial year |
Yes |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm / promoter
involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if
available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director,
if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
TURNAROUND
After more than a
decade of recurring losses and declining turnover, company was able to
establish a consistent turnover escalation in performance for two financial
years in a row. The total revenue of the Corporation for the year increased by
172% to Rs.1850.000 Millions from Rs.682.000 Millions during the previous year.
The Gross Margin (EBIDTA) increased by 929 % to Rs.69.800 Millions from
Rs.6.800 Millions for the previous year and profit after tax increased to
Rs.15.500 Millions from a loss of Rs.77.000 Millions for the previous year
REVIVAL PLAN OF
GOVERNMENT OF INDIA
In the past decade
and more, NFDC suffered heavy losses on account of which its developmental
mandate was seriously hampered. Given these losses, in F.Y. 2008-09, NFDC was
notified a sick PSE by the Board of Restructuring of Public Sector Enterprises
(BRPSE). A plan for revival of the company was submitted to BRPSE in March 2010
which was recommended by BRPSE in entirety to the Government of India and in
turn approved by the Union Cabinet vide letter No.202/32/2009-F(PSU)(Vol-II)
dated 30th September 2010. The Government approved the following measures to
revive NFDC:
· Infusion of additional equity of Rs.30.000 Millions into NFDC
·
Conversion of the outstanding Government loan of
Rs.197.700 Millions, along with accumulated interest thereon of Rs.86.300
Millions, into equity.
Accordingly,
Company’s paid-up capital, during the year, increased from Rs.139.999 Millions
to Rs.453.999 Millions as on 31.3.2011.
SHARE CAPITAL
Subsequent to the
foregoing, the Authorised and Paid-up Capital of the company has increased from
Rs.140.000 Millions and Rs.139.999 Millions to Rs.454.000 Millions and
Rs.453.999 Millions respectively.
GRANT-IN-AID FROM
GOVERNMENT OF INDIA
Since 2008, the
Government of India has recognized the need to bifurcate the development and
business roles of NFDC and has accordingly consented to support its development
activities by providing Grant-in-Aid for some of the major development
activities undertaken by company. This policy view was also ratified in the
Revival Plan of NFDC recommended by BRPSE and approved by the Union Cabinet
Accordingly:
i. During the
financial year 2010-11, the Ministry of information and Broadcasting sanctioned
a Grant-in-Aid of Rs.99.900 Millions for film production.
ii. An amount of
Rs.50.000 Million for restoration and digitization of old films.
BUSINESS ACTIVITIES
FILM PRODUCTION
Under the Eleventh
Five-Year Plan, the Ministry of Information and Broadcasting executed its Plan
Scheme "Film production film in various regional languages by
Company" through Company. Against the same, company produces films under
its existing guidelines for film production whereby it aims to encourage
new/debutant feature film makers by undertaking 100% production of their first
feature films and to co-produce good quality films in partnership with private
players both from India and abroad.
During the year
2010-11, various films projects were under process at various stages, details
of which are as under:
During the year,
the feature film That Girl In Yellow
Boots, coproduced with Anurag Kashyap Films Production and directed by
Anurag Kashyap, was successfully completed and distributed in the commercial
circuit. In addition, the film has also been released in USA and UK. The film
was also showcased in the Toronto International Film Festival and the Venice
International Film Festival, amongst others.
The Konkani film Palatadacho Munis, directed by
debutant filmmaker Laxmikant Shetgaonkar, won the National Award for the Best
Feature Film in Konkani and was also honoured with the Grand Jury Prize for
Best Film at the Indian Film Festival at Los Angeles. The film was also
conferred the FIPRESCI Award at the Toronto International Film Festival.
EXPORTS
Apart from monetizing its catalogue of films in overseas markets, the Department of Overseas Distribution also undertakes the developmental mandate of promoting Cinemas of India and Indian filmmakers abroad. It has also undertaken initiatives to execute services for overseas clients in India, for instance, 32 episodes of the animation series Magic Cellar II have been produced by NFDC for SABC, South Africa.
IMPORTS
While previously
in the 1980s, company used to be a significant importer and distributor of
foreign films, the business declined in the 1990s with the emergence of Indian
buyers of foreign films in the private domain. In the current scenario, import
market is uncertain with avenues for distribution of foreign cinema (other than
Hollywood films) being limited and as such the Corporation is not embarking
upon this activity on immediate basis.
FILM BAZAAR
With a view to
facilitating collaboration between Indian and international film fraternity in
the realms of film production and distribution, company set up the Film Bazaar
in 2007, to be conducted alongside the International Film Festival of India,
Goa. From an Indian Film Market with 170 delegates from 11 countries, Film
Bazaar is now a South Asian Market. The 2010 edition saw the participation of
more than 550 delegates from 37 countries. Film Bazaar 2011 is being supported
by Incredible India and also has several international partnerships including
Screen International, Prime Exchange Germany, Cine Mart Netherlands, IFB New
York, Moscow International Film Market, and Binger Film Lab Netherlands.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
INDUSTRY OVERVIEW
Indian media and
entertainment industry stood at INR 652 billion growing at a CGAR of 8%
(2007-10). The industry is slated to grow at a compounded annual growth rate
(CAGR) of 14 percentages by 2015 accordingly to a report by Federation of
Indian Chambers of Commerce and Industry (FICCI) and research firm KPMG. The
phenomenal exponential development witnessed in recent year in media and
entertainment has made these one of the most rapidly performing sectors in our
economy. The emergence of innumerable TV channels and private FM radio
operators has bridged distances and taken entertainment and information to
every nook and corners of the country. Government's liberal economic policy
paved way for dynamic local entrepreneurs to spearhead this boom.
Key Drivers: Key
drivers for entertainment industry are:
· Economic Growth of the company in general and rising disposable income levels in particulars
· Gradually liberalizing attitude of the Government
· Greater interface with international companies
· Privatization and growth of the radio industry
· Advancement in technology
· Favorable regulatory initiative
·
Liberalized foreign investment regime
FILM SECTOR
Indian film
industry stood at INR 83 billion in 2010. The industry is projected to grow at
a CAGR of 10% and reach INR 132 billion by 2015. Growth driver for the sector
would include expansion of multiplexes screens resulting in better realization,
an increase in number of digital screens facilitating wider releases, higher
cable and satellite revenues, improving collections from the overseas markets
and ancillary revenue streams like DTH, digital downloads etc, which are
expected to emerge in future.
This robust growth
rate indicates that there is a good demand of films in the Indian Market and
that this demand would continue to be growing in the near future. However,
above data only reflects the state of the mainstream Hindi film industry and to
some extent Tamil and Telugu mainstream whereas films are made in about 25
languages and the bulk of these films have trouble accessing distribution
avenues and do not have a Pan-Indian reach.
Further growth in
Indian exhibition and distribution sector is not inclusive. It focuses on
primary urban centers where there is a growth of multiplexes and growing demand
for Indian content. On the other hand, increasingly, theatres in smaller towns
are closing down due to declining viability of operations.
COMPETITIVE POSITIONING VIS-A-VIS THE INDUSTRY
India's Film Industry
is one of the largest in the world with more than 1000 movie releases and over
3 billion movie goers annually. The growth in the industry is not well spread
and is mainly on account of mainstream commercial films mostly made in Hindi
which is popularly called Bollywood. However, regional/ cultural films growth
are still at a nascent stage and require support from the Government in terms
of production, funding, talent development, promotion and exhibition support.
Company has been
mandated with planning, promoting, and organizing an integrated and efficient
development of the Indian film industry and its positioning therefore emanates
from this object. As a film development agency, company is responsible for
facilitating growth in areas/ segments of the film industry which cannot be
taken on by private enterprise due to commercial exigencies. Thus, as the
industry grows and expands, and new challenges and shortfalls emanate at each
stage of this growth, it would be expedient for company to step into those
areas to supplement the efforts of the industry.
The vacuum in the
industry changes as the industry grows – thus 15 years ago, the vacuum was in
lack of technology, in imports, in funding new talent, lack of theatres etc.
Today, the lacunae includes insufficient attention to language cinemas, lack of
distribution and exhibition avenues for acclaimed films, lack of coordinated
promotion of Indian cinemas abroad, absence of any global positioning of the
Cinemas of India, lack of sufficient avenues for emergence of new talent etc,
as already enumerated in the preceding section. Company to fulfill the mandate
for which it has been set up, needs to step into these areas.
It needs to be
emphasized here that
· Company is not in competition with private enterprise; and
·
Company has to supplement the efforts of private
sector and facilitate
areas where growth is required but that cannot be met through private
enterprise because it is not commercially expedient to do so.
Company’s
positioning needs constant adjustments in accordance with the needs of the
industry at a given point of time. Considering the fact that the film
production is a capital intensive business and since the success of an art film
solely depends on the relevance and quality, the Indian private commercial film
production houses prefer themselves to be away from making such movies. The
major reason which can be quoted for their ignorance of art films can be that
these films do not give them “quick” revenues as against a mainstream or a commercial
movie.
Company by its
developmental mandate fills up this gap and promotes regional/
cultural/heritage film development.
OUTLOOK
Cinema is a vital
tool for promoting and maintaining Indian culture values and languages and
particularly so in India in view of the fact that cinema is the most popular
medium of entertainment. It is estimated that on an average, daily viewership
in film theatres is in the region of 10 million. None of the other streams of
Indian art and
Cultures have such
enormous appeal in India and cinema has emerged as the mass medium of culture.
The future of
Media and entertainment industry is vibrant. With the growth of Indian Economy
at a rate of more than 8% supported by change in spending habits of people,
Entertainment Industry is bound to flourish. As per FICCI-KPMG Indian Media and
Entertainment Industry Report 2011, Indian Media and Entertainment industry is
set to grow at a CAGR of 14% in medium term. Film sector which witnessed a CGAR
of -3% during 2007-2010, poised to grow at a CAGR of 10% during the period
2011-2015.
On the other hand,
there is a need to support and push good cinema across all regional languages,
preserve Indian culture through restoration of old and acclaimed films,
supporting industry providing value added services.
Governmental
support for feature film development is available in all countries across the
world. Company has similar government support in terms of Grant in aid from
Government of India for some of the major development activities undertaken by
company.
Given above
positive environment, company continues to promote good cinema in various
regional language including providing wholesome entertainment to children. In
addition many other developmental activities like digitalization of old film
heritage, Dissemination of film culture through film festivals, seminars,
workshops, screening etc, promoting India as a film shooting destination and
leveraging it to increase tourism are also its focus. Company is planning to
start Video on Demand website for digital distribution, run training workshops
for film professionals in addition to its other revenue generating verticals.
It intends to grow in business alongside catering to its customers with
inclusive quality satisfaction.
Accordingly, the
outlook of the sector and the enterprise continues to remain bright and vibrant
having positive external and internal environment supported by growth of Indian
economy, growing markets, Government of India's support etc.
CONTINGENT LIABILITIES
|
Particulars |
31.03.2011 |
31.03.2010 |
|
|
(Rs. In
Millions) |
|
|
|
|
|
|
Bank Guarantees |
0.495 |
0.495 |
|
Claims from the Sales Tax Authorities for film distribution business
for which appeal has been filed |
2.070 |
2.070 |
|
Legal cases against the Corporation |
52.240 |
48.120 |
|
Claim against Corporation for increase in rental for the premises not
acknowledge as debts pending in Civil Court. |
1.038 |
1.848 |
|
Penalty U/S 271B of the Income Tax Act (A.Y. 2002-03) |
0.100 |
0.100 |
FIXED ASSETS:
· Leasehold Land
· Building
· Office Premises
· Laser Studio
· Special Effects
· Office Equipment
· Computer
· Furniture and Fitting
· Vehicles
· Plants for Sale
PRESS RELEASE
National Film Development Corporation comes up with
latest movie, Maya Bazaar
June 5, 2012
Kolkata: National Film Development Corporation (NFDC) has come up with latest
movie, Maya Bazaar. As Kolkata swelters under scorching heat, well-known actors
like Dhritiman Chatterjee and Roopa Ganguly and others are geared up to add on
to the blaze with their latest screen outing in Maya Bazaar produced by the
NFDC.
Maya Bazaar, an
anthology of three stories - Smriti, Satwa and Bhobisshot -- drives you to a
world of obsession engulfed by memories, overwhelmed with illusion, desperately
trying to contemplate the absolute truth of life. While the young widow in
Smriti is obsessed with the absence of her husband, seeing any man as her
ex-husband, the prolific artist in Satwa is engrossed in his self-articulated image
of the girl frequenting his dreams. Bhobisshot summons up the age-old argument
of natural and supernatural.
"Every man
has his own mental world, his own mode of thinking. Every man creates a world
of good and evil, pleasure and pain, out of his own imagination only. My
character, Kuhu in Smriti, portrays that internal conflict within one self
through her anxious longing for her husband who is no more in this world,"
said Roopa Ganguly in a media meet.
Joydeep Ghosh,
the director, has already made a name for himself as a maker of documentary and
short films revolving around social issues. On weaving Maya Bazaar with three
stories into one complex plot, he said, "Maya Bazaar is a very thought
provoking film that compels you to think beyond the empirical world. It's a
movie for every sensible man who otherwise has a world of his own imagination.
There is a common link between all the stories, that is an obsession and
desperation to find something that is missing."
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.55.67 |
|
|
1 |
Rs.88.05 |
|
Euro |
1 |
Rs.69.92 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
0 |
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
47 |
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.