MIRA INFORM REPORT

 

 

Report Date :

20.07.2012

 

IDENTIFICATION DETAILS

 

Name :

FOX STAR STUDIOS INDIA PRIVATE LIMITED (w.e.f. 05.02.2008)

 

 

Formerly Known As :

PERSPECTIVE MEDIA PRIVTE LIMITED

 

 

Registered Office :

Star House, 6th Floor, Off Dr. E. Moses Road, Mahalaxmi, Mumbai-400011, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

04.10.2006

 

 

Com. Reg. No.:

11-165060

 

 

Capital Investment / Paid-up Capital :

Rs.56.877 Millions

 

 

CIN No.:

[Company Identification No.]

U92490MH2006PTC165060

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMP22756G

 

 

PAN No.:

[Permanent Account No.]

AAECP0309G

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

To carry on the business of, inter alia, production and distribution of films and related business

 

 

No. of Employees :

Information declined by the management.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (30)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 3400000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. And their appears sharp dip in sales turnover. However, trade relations are reported t be 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.

 

 

INFORMATION DECLINED

 

Management non co-operative.

 

LOCATIONS

 

Registered Office :

Star House, 6th Floor, Off Dr. E. Moses Road, Mahalaxmi, Mumbai-400011, Maharashtra, India

Tel. No.:

91-22-66305555

Fax No.:

91-22-66153223

E-Mail :

shriramk@in.foxstarstudios.com

Jagdish@in.startv.com

yashk@in.startv.com

 

 

DIRECTORS

 

As on 30.09.2011

 

Name :

Mr. Deepak Eapen Jacob

Designation :

Director

Address :

B2-1003, Uniworld City, Sector 30, Gugaon-122009, Haryana, India

Date of Birth/Age :

18.12.1970

Date of Appointment :

30.09.2009

DIN No. :

01435059

 

 

Name :

Mr. Nitin Kukerja

Designation :

Director

Address :

2012, Tower 2,Wing E, Ashok Gardens, Tokersay Jivrag Marg, Sewree, Mumbai-400015, Maharashtra, India

Date of Birth/Age :

07.08.1977

Date of Appointment :

04.09.2009

DIN No. :

02278283

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2011

 

Names of Shareholders

 

No. of Shares

Fox Star Studios Holdings Limited, Mauritius

 

5267687

Star India Private Limited (Nominee of Fox Star Studios Holdings Limited), India

 

1

 

 

 

Total

 

5267688

 

As on 12.02.2011

 

Names of Allottees

 

No. of Shares

Fox Star Studios Holdings Limited, Mauritius

 

420000

 

 

 

Total

 

420000

 

As on 13.01.2012

 

Names of Allottees

 

No. of Shares

Fox Star Studios Holdings Limited, Mauritius

 

2846800

 

 

 

Total

 

2846800

 

As on 30.09.2011

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

To carry on the business of, inter alia, production and distribution of films and related business

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management.

 

 

Bankers :

Not Available

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

S R Batliboi and Associates

Chartered Accountant

Address :

18th Floor, Express Towers, Nariman Point, Mumbai – 400 021, Maharashtra, India

Tel. No.:

91-22-66655000

Fax No.:

91-22-22826000

Pan No.:

AABFS3421N

 

 

Holding Company :

Fox Star Studios Holding Limited, Mauritius (News Corporation Limited, USA holds 100% equity in Fox Star Studios Holding Limited through various subsidiaries)

 

 

Fellow Subsidiary :

·         Twentieth Century Fox International Corporation, USA

·         Star Asian Movies Limited

·         Star Entertainment Media Private Limited

·         Star International Movies Limited

 

 

CAPITAL STRUCTURE

 

As on 30.09.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

15000000

Equity Shares

Rs.10/- each

Rs.150.000 Millions 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

8534488

Equity Shares

Rs.10/- each

Rs.85.345 Millions

 

 

As on 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

10000000

Equity Shares

Rs.10/- each

Rs.100.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

5687688

Equity Shares

Rs.10/- each

Rs.56.877 Millions

 

 

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

56.877

52.677

20.433

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

925.831

839.731

227.095

4] (Accumulated Losses)

(117.665)

(109.846)

(70.384)

NETWORTH

865.043

782.562

177.144

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

0.000

0.000

0.000

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

865.043

782.562

177.144

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

588.978

446.429

13.082

Capital work-in-progress

266.674

96.097

48.461

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

2.034

3.967

1.048

 

Sundry Debtors

32.681

144.987

83.853

 

Cash & Bank Balances

58.684

412.257

76.988

 

Other Current Assets

0.055

0.128

0.000

 

Loans & Advances

115.847

37.821

51.784

Total Current Assets

209.301

599.160

213.673

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

75.255

99.545

0.886

 

Other Current Liabilities

113.389

253.064

92.186

 

Provisions

11.266

6.515

5.000

Total Current Liabilities

199.910

359.124

98.072

Net Current Assets

9.391

240.036

115.601

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

865.043

782.562

177.144

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

574.272

1133.029

153.081

 

 

Other Income

7.119

6.175

1.609

 

 

TOTAL                                     (A)

581.391

1139.204

154.690

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Operating Expenses

72.979

332.904

9.883

 

 

Personnel Expenses

87.064

78.082

63.804

 

 

Administration and Selling  Expenses

248.649

218.508

138.449

 

 

TOTAL                                     (B)

408.692

629.494

212.136

 

 

 

 

 

Less

PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

172.699

509.710

(57.446)

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

0.419

0.097

0.176

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                (E)

172.280

509.613

(57.622)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

180.098

549.076

12.124

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX (E-F)                (G)

(7.818)

(39.463)

(69.746)

 

 

 

 

 

Less

TAX                                                                  (H)

0.000

0.000

0.400

 

 

 

 

 

 

PROFIT / (LOSS) AFTER TAX (G-H)                  (I)

(7.818)

(39.463)

(70.146)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

56.707

0.000

2.928

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

(1.37)

(7.49)

--

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

(1.34)

(3.46)

(45.35)

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

(1.36)

(3.48)

(45.56)

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(0.98)

(3.77)

(30.76)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.01)

(0.05)

(0.39)

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

0.23

0.46

0.55

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.05

1.67

2.18

 

 

LOCAL AGENCY FURTHER INFORMATION

 

DETAILS OF SUNDRY CREDITORS:

 

Particulars

 

31.03.2011

(Rs. in millions)

31.03.2010

(Rs. in millions)

31.03.2009

(Rs. in millions)

Sundry Creditors

75.255

99.545

0.886

 

 

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

No

9) Name of person contacted

No

10) Designation of contact person

No

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

No

15) Capital in the business

Yes

16) Details of sister concerns

Yes

17) Major suppliers

No

18) Major customers

No 

19) Payments terms

No

20) Export / Import details (if applicable)

No

21) Market information

--

22) Litigations that the firm / promoter involved in

--

23) Banking Details

No

24) Banking facility details

No

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

 

NOTE:

 

The Registered office of the company has been shifted from 203, Godavari, SVP Nagar, 4 Bunglows, Andheri (West), Mumbai – 400 053, Maharashtra, India to the present address w.e.f. 10.10.2006.

 

NATURE OF OPERATIONS:

 

Subject referred to hereinafter as Fox Star or the Company is in the business of production and distribution of movies. Subject acquires exploitation rights to movies. These acquired rights are exploited worldwide and across various platforms, such as theatrical, music, home video, satellite and all other existing or yet to be created media including, but not limited to, websites, publishing, gaming and merchandising. Subject is also the theatrical distributor in India for all movies released worldwide by Twentieth Century Fox International Corporation.

 

CONTINGENT LIABILITY:

 

A. As per the provisions of the Maharashtra Value Added Tax Act, 2002 (MVAT), Copyright was included in the scheduled list of taxable items with effect from April 01, 2005 and hence, the Company is subject to levy of MVAT on revenue earned from lease of copyrights. In August 2006, the Film and Television Producers Guild of India have made representations to the Special Working Group (of the Empowered Committee on VAT comprised of VAT Commisionerates of various states) (SWG) for granting an exemption from VAT on copyright transactions related to VAT. In October 2008, the SWG agreed to suspend / shelve VAT on Film industry. The Com any has relied on the minutes of the meetings of SWG and has not levied/collected VAT on its invoices.

 

Further, by way of notification effective from May 1, 2011, the levy of MVAT on copyright has been withdrawn by the Government of Maharashtra. No demands have been made on the Company for MVAT payable till March 31, 2011. The Company believes that the applicability of VAT is uncertain at this stage given the representations made, and accordingly, has not made any provisions in the books or paid any amount in this regard.

 

B. The Finance Act, 2010 had introduced a new taxable service category viz Copyright Services, wherein temporary transfer or permitting the use/ enjoyment of copyright has been made liable to service tax. The levy extends to all transactions involving temporary transfer or permitting the use of copyrights in cinematographic films and sound recordings. Pursuant to this, the Company (as a part of Motion Pictures Distributors) has filed a writ petition in the Bombay High Court challenging the vires of the Central Government to levy Service tax under the said entry. Pending disposal of the writ petition, no provision of any service tax liability has been made in the books of accounts. The estimated liability in this regard as on March 31, 2011 is Rs 28.319 Millions (Previous Year Nil).

 

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.55.38

UK Pound

1

Rs.86.75

Euro

1

Rs.68.06

 

 

INFORMATION DETAILS

 

Information Gathered by :

SBA

 

 

Report Prepared by :

TPT


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

4

--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

 

30

 

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

-

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.