MIRA INFORM REPORT

 

 

Report Date :

20.06.2012

 

IDENTIFICATION DETAILS

 

Name :

UNIVERSAL MUSIC INDIA PRIVATE LIMITED  

 

 

Formerly Known As :

POLYGRAM INDIA LIMITED

MUSIC INDIA LIMITED

GAUMONT-KALEE LIMITED

 

 

Registered Office :

Samir Complex, St. Andrews Road, 3rd Floor, Bandra (West), Mumbai – 400018, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

14.10.1945

 

 

Com. Reg. No.:

11-004579

 

 

Capital Investment / Paid-up Capital :

Rs.59.897 Millions

 

 

CIN No.:

[Company Identification No.]

U32300MH1945PTC004579

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMP09536C

 

 

PAN No.:

[Permanent Account No.]

AAACP1958C

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Subject is in the business of Producing, Acquiring, Marketing and Distribution of Music.

 

 

No. of Employees :

50 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca (22)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

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

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is old established company having moderate 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 slow.

 

The company can be considered for business dealings on a safe and secured trade terms and conditions.

 

 

NOTES:

 

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

INFORMATION PARTED BY (General Details)

 

Name :

Ms. Pallavi Moghe

Designation :

Executive Assistant in Account and Finance

Contact No.:

91-22-26553241

Date :

19.06.2012

 


 

LOCATIONS

 

Registered Office :

Samir Complex, St. Andrews Road, 3rd Floor, Bandra (West), Mumbai – 400018, Maharashtra, India

Tel. No.:

91-22-26553241/ 42/ 43/ 44

Fax No.:

91-22-26559817/ 26556030

E-Mail :

spsharma@umusic.com

pallavi.moghe@umusic.com

sp.sharma@umusic.com

sp.sharma@umusic.com

Website :

http://www.umusic.com

http://www.umuicindia.com

 

 

Warehouse :

Located at:

 

·         Bhandup

 

 

Branch Office :

Located at:

 

·         Ahmedabad

·         Kolkata

·         Bengaluru

·         Mumbai

·         Chennai

·         Gurgaon

·         New Delhi

·         Hyderabad

·         Pune

·         Noida 

 

 

DIRECTORS

 

(AS ON 26.09.2011)

 

Name :

Mr. Boyd Johston Muir

Designation :

Director

Address :

The Old Rectory, The Street Albury, Survey, Gu59ax, United Kingdom

Date of Appointment :

28.09.2001

DIN No.:

02748375

 

 

Name :

Mr. Victor Henri Antippas

Designation :

Director

Address :

Rossbergstrasse 6, Wollerau, 8832, Switzerland

Date of Birth/Age :

18.07.1953

Date of Appointment :

26.09.2011

DIN No.:

03341276

 

 

Name :

Mr. Devraj Sugata Sanyal

Designation :

Managing Director

Address :

202, Mayflower, Union Park, Plot No.31A, Khar (W), Mumbai – 400 052, Maharashtra, India

Date of Appointment :

26.05.2011

DIN No.:

03533598

 

 

KEY EXECUTIVES

 

Name :

Ms. Pallavi Moghe

Designation :

Executive Assistant in Account and Finance

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 26.09.2011)

 

Names of Shareholders

 

 

No. of Shares

 

 

 

Universal Trading Company B. V., Netherland

 

598967

Capella B.V., Netherland

 

1

 

 

 

Total

 

 

598968

 

 

(AS ON 30.06.2011)

Equity Shares Break – up

 

Category

 

Percentage

 

 

 

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

 

100.00

 

 

 

Total

 

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is in the business of Producing, Acquiring, Marketing and Distribution of Music.

 

 

Terms :

 

Selling :

Depends 

 

 

Purchasing :

Depends 

 

 

GENERAL INFORMATION

 

Customers :

Corporates

 

 

No. of Employees :

50 (Approximately)

 

 

Bankers :

·         Citi Bank

Mumbai, Maharashtra, India

 

 

Facilities :

Unsecured Loans

31.12.2010

31.12.2009

 

 

(Rs. In Millions)

 

 

 

Loan from Universal Music Trading Company BV, Holding Company

Rupee determined external commercial borrowing (Interests Fees) 

803.262

1776.672

Interests accured and due

17.063

17.053

 

 

 

Total

 

820.325

1793.725

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

S. R. Batliboi and Associates

Chartered Accountant

Address :

14th Floor, The Ruby, 29 Senapati Bapat Marg, Dadar (West), Mumbai – 400028, Maharashtra, India

PAN No.:

AABFS3421N

Tel No.:

91-22-61920000

Fax No.:

91-22-61921000

 

 

Holding Company :

·         Universal Trading Company B.V., Netherland

 

 

Ultimate Holding Company:

·         Universal Music Publishing India Private Limited

 

 

Subsidiaries :

·         Universal Music Publishing Private Limited, UK

CIN No.: U92100MH1999PTC118222

 

·         Universal Music Operations Limited, UK

·         Universal International Music Baam, Netherlands

·         UMG Recording Services Inc, USA

·         UM Malaysia

·         UM Limited, Hong Kong

·      UM Limited, Thailand

·         Universal Music (PTE) Limited, Singapore

·         Universal International BV Hanover

·         UM Music and Video - New York

·         Universal Music - Brazil

·         Universal Music - Denmark

·         UM Record Operation- Essex Loudon

·         Vivendi Universal Games, USA

·         Universal Music, Sweden

·         Universal Music Pty. Limited, Australia

·         Universe! Music Group - Philippines

·         Universal Music Group - Singapore

·         Universal Music Group - Taiwan

·         Universal Music KK- Japan

·         Universal Music Group- South Korea

·         Digital Distribution Services

 

 

CAPITAL STRUCTURE

 

(AS ON 26.09.2011)

 

Authorised Capital : Rs.80.000 Millions

 

Issued, Subscribed & Paid-up Capital : Rs.69.118 Millions

 

 

(AS ON 31.12.2010)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

600000

Equity Shares

Rs.100/- each

Rs.60.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

598968

Equity Shares

Rs.100/- each

Rs.59.897 Millions

 

 

 

 

 

Of the above

 

598967 Equity share are held by Universal Music Trading Company BV and 1 Equity Shares held by Capella BV.

 

Out of the above 162233 Shares were issued by commission of external commercial borrowing during the year.


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.12.2010

31.12.2009

31.12.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

59.897

43.674

43.674

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

959.384

2.630

3.051

4] (Accumulated Losses)

(1467.590)

(1629.813)

(1698.344)

NETWORTH

(448.309)

(1583.509)

(1651.619)

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

820.325

1793.725

1793.725

TOTAL BORROWING

820.325

1793.725

1793.725

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

372.016

210.216

142.106

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

13.855

9.677

12.493

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.144

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

8.181

10.030

12.745

 

Sundry Debtors

249.675

75.569

89.857

 

Cash & Bank Balances

232.140

203.822

168.125

 

Other Current Assets

81.035

59.136

54.125

 

Loans & Advances

101.195

69.783

63.630

Total Current Assets

672.226

418.340

388.482

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditor

177.133

113.123

173.974

 

Other Current Liabilities

104.198

82.467

61.762

 

Provisions

32.734

22.211

23.277

Total Current Liabilities

314.065

217.801

259.013

Net Current Assets

358.161

200.539

129.469

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

372.016

210.216

142.106

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.12.2010

31.12.2009

31.12.2008

 

SALES

 

 

 

 

 

Income (Revenue)

354.849

268.266

293.359

 

 

Other Income

8.291

18.730

23.116

 

 

TOTAL                                    

363.140

286.996

316.475

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Goods Consumed

64.851

51.687

52.127

 

 

Personnel Expenses

56.529

47.259

37.478

 

 

Royalties

63.370

44.674

53.916

 

 

Marketing, General and Administrative Expenses

142.562

130.399

149.785

 

 

Exceptional Items

(131.238)

(61.016)

0.000

 

 

TOTAL                                    

196.074

213.003

293.306

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

167.066

73.993

23.169

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

4.842

4.816

3.650

 

 

 

 

 

 

PROFIT BEFORE TAX

162.224

69.177

19.519

 

 

 

 

 

Less

TAX                                                                 

0.000

0.647

0.649

 

 

 

 

 

 

PROFIT AFTER TAX

162.224

68.530

18.870

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(1629.813)

(1698.343)

(1717.213)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(1467.589)

(1629.813)

(1698.343)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

7.965

12.093

16.871

 

 

 

 

 

 

Earnings Per Share (Rs.)

321.66

156.92

43.21

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.12.2010

31.12.2009

31.12.2008

PAT / Total Income

(%)

44.67

23.88

8.72

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

45.72

25.79

6.65

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

23.65

16.16

4.87

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.36)

(0.04)

(0.01)

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

(2.53)

(1.27)

(1.24)

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.14

1.92

1.50

 


 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS:

 

Particulars

31.03.2011

 

31.03.2010

31.03.2009

 

(Rs. In Millions)

 

 

 

 

Sundry Creditors

(Includes Due to Micro, Small and Medium Enterprises Rs. Nil)

177.133

113.123

173.974

 

 

 

 

Total

 

177.133

113.123

173.974

 

 

 

Check list by info Agents

Available in Report

(Yes/ No)

 

 

Year of Establishment

Yes

Locality of the Firm

Yes

Constitution of the Firm

Yes

Premises details

No

Type of Business

Yes

Line of Business 

Yes

Promoter’s Background 

Yes

No. of Employees

Yes

Name of Person Contacted

Yes

Designation of Contact person

Yes

Turnover of Firm for last three years

Yes

Profitability for last three years

Yes

Reasons for variation <> 20%

-----

Estimation for coming financial year

No

Capital in the business

Yes

Details of sister concerns

Yes

Major Suppliers

No

Major Customers

No

Payments Terms

Yes

Export/ Imports Details (If applicable)

No

Market Information

-----

Litigations that the firm/ Promoters Involved in

-----

Banking details

Yes

Banking Facility Details

Yes

Conduct of the Banking Account

-----

Buyer visit details

-----

Financials, if provided

Yes

Incorporation details is applicable

Yes

Last Accounts filed at ROC

Yes

MAJOR SHAREHOLDERS, IF AVAILABLE

YES

 

 

FINANCIAL HIGHLIGHT

 

1.       Revenues of the company increase by 32.5% over the last year from Rs.268 million to Rs.355 million. This was due to more revenue from Digital Segment.

 

2.       The cost of goods ratio (physical) sales has increased from 41.9% in. the year, 2009 to 42.7% in the year, 2010 due to.

-          Product mix more in favour of Domestic Repertoire

-          Pressure on product prices in the declining physical sales market

 

3.       Employee costs remain constant at Rs.57 million in 2010.

 

4.       Royalty costs have increased from Rs.44.7 million to Rs.63.4 million as a result of the huge revenue from digital.

 

5.       Marketing and general administrative expenses have increased from Rs.131 million to Rs.143 million.

 

6.       During the year the Company has earned a profit of Rs.162.2 million mainly due to better management and increase in sales and digital/ mobile income b) Transfer of Publishing rights to subsidiary Universal Music Publishing Private Limited for Rs.131 mn.

 

 

Contingent Liabilities not provided for

 

Particulars

31.12.2010

31.12.2009

 

 

(Rs. In Millions)

Claims against the company not acknowledged as debts

 

 

Amount payable in respect of partly paid-up hares of the subsidiary company

--

0.400

Sales tax Matters (All India)

79.872

67.229

 

 

FIXED ASSETS:

 

·         Office Building

·         Plant and Machinery

·         Furniture and Fixture

·         Vehicles

·         Computer Hardware

·         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, 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.55.60

UK Pound

1

Rs.87.34

Euro

1

Rs.70.66

 

 

INFORMATION DETAILS

 

Information Gathered by :

SBA

 

 

Report Prepared by :

NIT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

2

--PROFITABILIRY

1~10

--

--LIQUIDITY

1~10

2

--LEVERAGE

1~10

2

--RESERVES

1~10

2

--CREDIT LINES

1~10

2

--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

 

22

 

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.