MIRA
INFORM REPORT
|
Report Date : |
21.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
BENNETT COLEMAN AND COMPANY LIMITED |
|
|
|
|
Registered
Office : |
The Times of |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
29.11.1913 |
|
|
|
|
Com. Reg. No.: |
11-000391 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.2869.554 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U22120MH1913PLC000391 |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject is engaged into Printing and Publishing of
Newspapers. |
|
|
|
|
No. of Employees
: |
8500 (Approximately) (In Office + In Factory + In Branches) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (82) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 220000000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a flagship company of times group. It is one of the oldest
and highly respected publishing house in the country. Financial position of the
company is sound. Fundamentals appears to be strong and healthy. The company has recorded a huge increase in the profitability of the
company during the current year. Trade relations are reported to be praiseworthy. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered excellent for 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.
INFORMATION DENIED
Management Non Co-operative (91-22-2273127)
LOCATIONS
|
Registered Office : |
The Times of India Building, D N Road, Mumbai 400001, Maharashtra, India |
|
Tel. No.: |
91-22-66353535 / 66354460 |
|
Fax No.: |
91-22-22620144/ 22731737 |
|
E-Mail : |
|
|
Website : |
www.timesofindia.indiatimes.com www.enil.co.in |
DIRECTORS
As on 30.12.2011
|
Name : |
Mr. Samir Jain |
|
Designation : |
Vice-Chairman and
Managing Director |
|
Address : |
15, Moti Lal
Nehru Marg, |
|
Date of Birth/Age : |
22.06.1954 |
|
Qualification: |
B.A |
|
Date of Appointment : |
01.02.1985 |
|
DIN No.: |
00001337 |
|
|
|
|
Name : |
Mr. Vineet Jain |
|
Designation : |
Managing Director |
|
Address : |
15, Moti Lal
Nehru Marg, |
|
Date of Birth/Age : |
12.02.1966 |
|
Qualification: |
M.B.A (Mktg) |
|
Date of Appointment : |
27.06.1993 |
|
DIN No.: |
00003962 |
|
|
|
|
Name : |
Mr. Ravi Dhariwal
|
|
Designation : |
Whole Time
Director |
|
Address : |
Aashray Farm,
Khasra No. 1523, Asola Village, New Delhi – 110030, Delhi , India |
|
Date of Birth/Age : |
11.09.1952 |
|
Date of Appointment : |
01.01.2002 |
|
DIN No.: |
00003922 |
|
|
|
|
Name : |
Mrs. Amba
Preetham Parigi |
|
Designation : |
Director |
|
Address : |
Tahnee Heights
Chs Limited, 66, |
|
Date of Birth/Age : |
15.07.1949 |
|
Date of Appointment : |
14.09.2007 |
|
DIN No.: |
00087586 |
|
|
|
|
Name : |
Mrs. Kalpana
Jaisingh Morparia |
|
Designation : |
Director |
|
Address : |
B – 92, Ocean
Gold Chs, |
|
Date of Birth/Age : |
30.05.1949 |
|
Date of Appointment : |
14.09.2007 |
|
DIN No.: |
00046081 |
|
|
|
|
Name : |
Mr. Bhaskar Das |
|
Designation : |
Whole Time
Director |
|
Address : |
C-1, Queens View,
28/30m |
|
Date of Birth/Age : |
08.05.1953 |
|
Qualification: |
M.A MBA |
|
Date of Appointment : |
07.12.2007 |
|
DIN No.: |
00055594 |
|
|
|
|
Name : |
Mrs. Indu Jain |
|
Designation : |
Chairman |
|
Address : |
4 Tilak Marg, |
|
Date of Birth/Age : |
08.09.1936 |
|
Date of Appointment : |
13.05.1999 |
|
DIN No.: |
00004040 |
|
|
|
|
Name : |
Mr. Trishal Jain |
|
Designation : |
Whole Time
Director |
|
Address : |
15, Moti Lal
Nehru Marg, |
|
Date of Birth/Age : |
27.02.1985 |
|
Date of Appointment : |
01.04.2011 |
|
DIN No.: |
03371538 |
|
|
|
|
Name : |
Mr. Shrijeet R.
Mishra |
|
Designation : |
Whole Time
Director |
|
Address : |
301, Gitanjali
Gardens, 3rd Floor, 58E, Nepean Sea Road, Rungta Lane, Mumbai –
400006, Maharashtra, India |
|
Date of Birth/Age : |
22.04.1965 |
|
Date of Appointment : |
11.08.2011 |
|
DIN No.: |
01894081 |
KEY EXECUTIVES
|
Name : |
Mr. Padmakar
Manjunath Rao |
|
Designation : |
Company Secretary |
|
Address : |
B-17/18, Shree
Niketan, |
|
Date of Birth/Age : |
23.05.1953 |
|
Date of Appointment : |
02.06.1997 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.12.2011
|
Names of Shareholders |
|
No. of Shares |
|
Sanmati
Properties Limited, |
|
27981000 |
|
Bharat Nidhi
Limited, |
|
70041600 |
|
PNB Finance and
Industries Limited, |
|
26665848 |
|
Vineet Jain |
|
1642248 |
|
Samir Jain |
|
7200 |
|
Meera Jain |
|
943200 |
|
Camac Commercial
Company Limited, |
|
38161548 |
|
Arth Udyog
Limited, |
|
26719848 |
|
Jacaranda Corporate
Services Limited, |
|
25632000 |
|
T M Investments
Limited |
|
17093016 |
|
Ashok Viniyoga
Limited |
|
51707916 |
|
Trishla Jain |
|
360000 |
|
|
|
|
|
Total |
|
286955424 |
Equity Share Break up (Percentage of Total Equity)
As on 30.12.2011
|
Category |
Percentage |
|
Bodies corporate |
98.97 |
|
Directors or relatives of Directors |
1.03 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged into Printing and Publishing of
Newspapers. |
PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Unit |
Actual
Production |
|
Daillies |
Pages |
84690.096 Quantity (in
lakh units) |
Installed Capacity: Daillies: Capacity
per hour 698.60 lakhs (682.60 lakhs) Standard Broadsheet Pages.
GENERAL INFORMATION
|
No. of Employees : |
8500 (Approximately) (In Office + In Factory + In Branches) |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Facilities : |
(Rs. in Millions)
|
||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Lodha and Company Chartered Accountants |
|
Address : |
6, Karim Chambers, 40, Ambalala Doshi Marg, Mumbai-400023,
|
|
PAN.: |
AABFL1893K |
|
|
|
|
Joint ventures: |
·
Worldwide Media Private Limited, India
(subsidiary w.e.f. 07/10/2011) ·
Metropolitan Media Company Private Limited, India ·
Aegon Religare Life Insurance Company Limited,
India ·
Tatva Public Relations Private Limited, India
(upto 28.03.2011 ) |
|
|
·
|
|
Subsidiaries : |
·
21 st Century Constructions Limited, India (CIN:U74999DL1985PLC123961) ·
a2zShopping Limited, India
(CIN:U51109DL2008PLC184883) ·
Aadidev Properties Limited, India
(CIN:U70100MH2006PLC160897) ·
Alternate Brand Solutions (India) Limited, India (CIN: U92190MH2007PLC175549) ·
Anagha Estates Limited, India
(CIN:U70100MH2006PLC160898) ·
Artha Broking Services Limited, India
(CIN:U67190MH2007PLC172704) ·
Artha Commodities Limited, India
(CIN:U74900MH2007PLC175148) ·
Artha Credit Private Limited, India
(CIN:U65990MH1995PTC091027) ·
Artha Distribution Services Limited, India (CIN:U74990MH2007PLC174687) ·
Artha Financial Services Limited, India (CIN:U65990MH2008PLC178673) ·
Artha Forex Services Limited, India (CIN:U74990MH2007PLC174688) ·
Artha Insurance Broking Services Limited (CIN:U67200MH2007PLC172680) ·
Aryabhata Properties Limited, India
(CIN:U70100MH2006PLC160896) ·
Ativeer Properties Limited U70101DL2010PLC209333 ·
Aegon religare life Insurance company Limited (CIN:U66010MH2007PLC169110) ·
Banhem Estates and IT Parks Limited, India (CIN:U65990MH1983PLC029209) ·
Bennett Property Holdings Company Limited, India (CIN:U70102MH2010PLC211087) ·
Bennett Broadcasting and Distribution Services
Limited, India (CIN: U92100MH2008PLC179750) ·
Brand Equity Treaties Limited, India
(CIN:U74300MH2008PLC184669) ·
Centre for Excellence in Management Training and
Development, India (CIN:U74140MH2008NPL187724) ·
Dharmayug Investments Limited, India (CIN:U65993MH1983PLC030615) ·
Entertainment Network (India) Limited, India (CIN: L92140MH1999PLC120516) ·
Golden Square Networks Limited, India ·
Media Network and Distribution Services Limited,
India (CIN: U92412MH2010PLC208138) ·
Mind Games Shows Private, India Limited, India (CIN:U74990MH2009PTC190636) ·
Mirchi Movies (India) Limited, India
(CIN:U92120MH2007PLC167123) ·
Metropolitan Media Company Limited, India (CIN:U22121KA2006PLC062825) ·
One Golden Square Creative Limited, United
Kingdom ·
Nandeeshwar Properties Limited, India (CIN:U70100DL2010PLC209471) ·
PT Ventures Private, India Limited, United Arab
Emirates ·
Rajdhani Printers Limited, India ·
Prana Pr Private Limited, India
(CIN:U75110MH2007PTC177018) ·
Satyam Properties and Finance Limited, India (CIN: U70109DL1986PTC163888) ·
Shubhan Properties Limited, India
(CIN:U70100MH2006PLC160899) ·
SMG Digital Radio Limited, India ·
Surge Enterprises Limited, India
(CIN:U18109MH1992PLC068085) ·
Speaking Tree Properties Limited, India (CIN:U70101DL2010PLC209337) ·
Suryashankar Properties Limited, India (CIN:U70100MH2006PLC160900) ·
Sushena Properties Limited, India
(CIN:U70100MH2006PLC160895) ·
Times Business Solutions Limited, India (CIN:U92100DL2005PLC173555) ·
Times Digital Limited, India
U72300DL2007PLC165449 ·
Times Global Broadcasting Company Limited, India (CIN: U32109MH1986PLC168454) ·
Times Guaranty Limited, India
(CIN:L65920MH1989PLC054398) ·
Times Infotainment Media Limited, India (CIN:U72900MH2002PLC134966) ·
Times Innovative Media Private Limited, India (CIN: U99999MH2005PLC157078) ·
Times Internet (UK) Limited, UK ·
Times Internet Inc, USA ·
Times Internet Limited, India
(CIN:U74999DL1999PLC135531) ·
Times Journal India Private Limited, India (CIN:U22121DL2004PLC126751) ·
Times of Money Financial Services Limited, India ·
Times of Money Inc (USA) ·
Times of Money Limited, India
(CIN:U67190MH2000PLC126353) ·
Times of Money UK – PLC (UK) ·
Times Websol Limited, India
(CIN:U72200DL2008PLC184870) ·
Times Yoga Limited, India
(CIN:U74999DL2007PLC165200) ·
Times Vpl Limited, India
(CIN:U02212KA2003PLC032182) ·
Times Mobile Limited, India (CIN:U72900DL2008PLC185013) ·
TIML Global Limited, India ·
TIML Golden Square Limited, India ·
TIML Radio Holdings Limited, India ·
TIML Digital Radio Limited ·
TIML Radio Limited, India ·
TOM Payment Solutions Limited, India (CIN:U74900MH2007PLC174653) ·
Vaidehi Estates Limited, India
(CIN:U45203MH2006PLC160915) ·
Vardhaman Publishers Limited, India
(CIN:U22120MH1985PLC036799) ·
Zoom Entertainment Network Limited, India (CIN: U74992MH2006PLC163048) ·
Worldwide Media Private Limited, India (CIN:U22120MH2003PTC142239) |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
300000000 |
Equity Shares |
Rs.10/- each |
Rs.3000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
(A) 286955424 |
Equity Shares |
Rs.10/- each |
Rs.2869.554
Millions |
|
|
|
|
|
Note:
(A) The above
includes 3,09,960 Ordinary shares allotted as fully paid for consideration other
than cash in pursuance of a contract; 28,59,55,424 Ordinary shares issued as
bonus shares by capitalisation of General Reserve and Capital Redemption
Reserve.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 (8th
Months) |
31.07.2009 (12th
Months) |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
2869.554 |
318.839 |
318.839 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
54104.956 |
47168.369 |
44668.063 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
56974.510 |
47487.208 |
44986.902 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
4683.922 |
5871.029 |
|
|
TOTAL BORROWING |
0.000 |
4683.922 |
5871.029 |
|
|
DEFERRED TAX LIABILITIES |
11.314 |
2.169 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
56985.824 |
52173.299 |
50857.931 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
15670.734 |
17287.435 |
14985.833 |
|
|
Capital work-in-progress |
4023.713 |
2871.933 |
4932.792 |
|
|
|
|
|
|
|
|
INVESTMENT |
38928.122 |
37124.795 |
38121.038 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
2.846 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4753.236
|
2979.859
|
4686.074
|
|
|
Sundry Debtors |
2026.848
|
1979.409
|
1502.584
|
|
|
Cash & Bank Balances |
2200.086
|
1536.437
|
1611.712
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.069
|
|
|
Loans & Advances |
10315.794
|
10099.107
|
9957.609
|
|
Total
Current Assets |
19295.964
|
16594.812 |
17758.048 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
6562.882
|
5933.291
|
5303.650 |
|
|
Other Current Liabilities |
13669.200
|
15721.102
|
19446.595
|
|
|
Provisions |
700.627
|
51.283
|
192.381
|
|
Total
Current Liabilities |
20932.709
|
21705.676 |
24942.626 |
|
|
Net Current Assets |
(1636.745)
|
(5110.864)
|
(7184.578)
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
56985.824 |
52173.299 |
50857.931 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 (8th
Months) |
31.07.2009 (12th
Months) |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
44525.530 |
24911.151 |
35485.783 |
|
|
|
Other Income |
2967.567 |
613.926 |
8264.976 |
|
|
|
TOTAL (A) |
47493.097 |
25525.077 |
43750.759 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Consumption material changes inventories |
13085.549 |
8217.547 |
|
|
|
|
Manufacturer services costs |
2049.793 |
999.561 |
|
|
|
|
Employee related expenses |
6439.916 |
3509.715 |
|
|
|
|
Administrative selling other expenses |
8678.919 |
5343.736 |
|
|
|
|
TOTAL (B) |
30254.177 |
18070.559 |
35742.068 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
17238.920 |
7454.518 |
8008.691 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
257.123 |
249.704 |
1144.783 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
16981.797 |
7204.814 |
6863.908 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2090.351 |
1465.767 |
2104.618 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
14891.446 |
5739.047 |
4759.290 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
5204.040 |
3216.434 |
2132.340 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
9747.901 |
2522.613 |
2626.950 |
|
|
|
|
|
|
|
|
|
Less |
TAX FOR EARLIER
YEARS (NET) |
60.495 |
1343.420 |
146.587 |
|
|
|
|
|
|
|
|
|
|
NET PROFIT |
9687.406 |
2522.613 |
2480.363 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
158.455 |
158.149 |
100.167 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
9040.801 |
2500.000 |
2400.000 |
|
|
|
Dividend |
200.104 |
22.307 |
19.130 |
|
|
|
Tax on Dividend |
0.000 |
0.000 |
3.251 |
|
|
BALANCE CARRIED
TO THE B/S |
604.956 |
158.455 |
158.149 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Publication |
|
16.999 |
44.060 |
|
|
|
Cassettes/ CDs |
|
3.174 |
5.326 |
|
|
|
Advertisement Income |
554.422 |
279.067 |
406.798 |
|
|
|
Other income |
|
9.818 |
22.327 |
|
|
|
Subscription |
|
0.000 |
1.831 |
|
|
TOTAL EARNINGS |
|
309.058 |
480.342 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
NA |
4189.116 |
12870.800 |
|
|
|
Stores & Spares |
NA |
286.838 |
300.642 |
|
|
|
Capital Goods |
NA |
370.162 |
1357.507 |
|
|
|
Leisure and Retails Products |
NA |
2.967 |
2.810 |
|
|
TOTAL IMPORTS |
NA |
4849.083 |
14531.759 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
33.76 |
8.79 |
77.79 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 (8th
Months) |
31.07.2009 (12th
Months) |
|
PAT / Total Income |
(%) |
20.52
|
9.88 |
6.00 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
33.44
|
23.04 |
13.41 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
77.17
|
34.58 |
26.80 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.12 |
0.11 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.37
|
0.56
|
0.68 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.92
|
0.76
|
0.71 |
LOCAL AGENCY FURTHER INFORMATION
Sundry Creditors Details:
Rs. In Millions
|
Particulars |
31.03.2011 |
31.03.2010 (8th
Months) |
31.07.2009 (12th
Months) |
|
Sundry Creditors |
|
|
|
|
Micro, Small and Medium Enterprise and
others |
0.000 |
0.000 |
0.000 |
|
Others |
6562.882
|
5933.291
|
5303.650 |
|
Total |
6562.882
|
5933.291
|
5303.650 |
|
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 |
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 |
-- |
|
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 |
REVIEW
OF OPERATIONS
During the financial
year 2010-11, the flagship brand, The Times of India achieved an overall growth
of 5.7% with the average daily net sales at 4.144 Millions copies (Previous
year’s average sale: 3.920 Millions copies).
The Economic Times
showed a growth in circulation of 5.9% over the previous year with average
daily net sales for the current year at 0.692 Million copies (previous year
0.654 Million copies). It held its market share intact as the leading Business
daily. The Economic Times started printing from two new centers, Goa from July
5 and Nagpur from August 17.
The Maharashtra
Times, Pune edition was launched in on Jan 07 2011 with an initial print order
of 0.300 Million copies. Navbharat Times recorded a growth of 6.4% (Delhi and
Mumbai editions combined) clocking an average daily sales of 0.590 Millions
copies in the current year.
ET Wealth was
launched in 8 cities on 13th December 2010. It is an exquisitely put
together compact weekly paper on personal finance. The ET Wealth has a current
combined circulation of nearly 0.35 Million copies.
The Speaking Tree
spread to three more centers, namely, Pune, Chennai and Hyderabad in the year.
Likewise, the Crest edition was also launched in the Eastern markets of
Kolkata, Patna and Ranchi.
There is a sustained
build-up of competitive pressure in all segments in several markets. However,
the inherent strengths of the Company’s brands coupled with marketing
strategies and new launches should enable the Company’s publications to
consolidate their positions in the respective markets.
Response
In the backdrop of
a steady macro-economic environment, as per FICCI-KPMG 2011, the overall print
market grew by 15%. The Company has surpassed the market – by clocking 24%
growth (i.e. Revenues of Rs. 40040.000 Millions.), which, in turn, has impacted
their market shares as follows:
·
Overall Dailies: Value market share is constant at
38%; Volume market share is up by 1% to 38%
·
English Dailies: Value MS is up by 1% to 53%;
Volume MS is up by 1% to 50%
Some of the key
performance highlights are as follows:
·
On a brand basis, of the total growth of Rs.
8260.000 Millions., The Times of India contributed Rs. 6560.000 Millions. (i.e.
79 %), The Economic Times – Rs. 710.000 Millions (9 %), Mirrors – Rs. 540.000
Millions (7 %), Maharashtra Times – Rs. 130.000 Millions (2 %) and Navbharat
Times – Rs. 120.000 Millions (1%).
·
By verticals, the top growth contributors were Real
Estate at Rs. 1750.000 Millions (21%), followed by Retail at Rs. 1080.000
Millions (13%), Financial at Rs. 990.000 Millions (12%) and Appointments at Rs.
460.000 Millions (6%).
·
Response’s exploitation of opportunities through
dynamically co-creating solutions has resulted in the growth of smart sell
component to the total Response revenue which has increased from 27% to 28%
(+1%).
·
Response Integrated Solutions ended the year at Rs.
280.000 Millions (i.e. 39% growth).
·
The revenue of their hyper-local Pluses grew by 49%
and at 50% profitability.
However, they did
come across the following challenges as well:
·
Education Times declined from Rs 800.000 Millions.
to Rs 690.000 Millions. They still managed to grow the overall Education
vertical by 4% from Rs. 3200.000 Millions. To Rs. 3320.000 Millions. and value
market share has remained unchanged at 35%.
·
Telecom vertical declined by 2% from Rs. 1240.000
Millions. to Rs 1220.000 Millions. But they have held on to their value market
share at 37% in overall dailies.
Readership Review:
As per IRS 2010 Q4,
in the English Dailies segment, their English dailies command a 48% share in
urban markets, with 54% share in the top 8 metros, 52% in SEC A and 47% amongst
youth (12-25 years). This is reflected in their value market shares in these 8
metros which stand at 54%.
The Year Ahead…
While the
FICCI-KPMG 2011 confirms that the overall Media and Entertainment industry grew
at 8% CAGR from 2007 to 2010, its estimation for the next 5 years is a CAGR of
14% with Television and Print continuing to contribute more than 85% of the
revenues.
Also, print is
expected to grow at 10% CAGR for the next 5 years on the back of the following
growth drivers:
Regionalization
Industry Expansion and Diversification Innovations Encouraging inbound
investment 360º connect - advertisers opting for multiple touch points to
communicate to the consumer across TV, Print, Radio, OOH, Films, Internet,
Mobile and Retail.
Print media is
expected to face multiple challenges emerging from the dynamic evolution of
entertainment industry and some key hurdles that it must find a way to
overcome:
Lack of
interactivity and measurability Intra-category intensification of competition
Inter category migration Fragmentation of attention due to plethora of media
options resulting in dilution of reader’s engagement quotient. Also, media
being a derived business is dependent on the sensitivity and volatility of the
macro socio-economic environment. Certain factors like increase in inflation
and interest rates, results in a decrease in the consumer’s disposable income
which in turn affects their clients’ volume of business which in turn result in
cost rationalization and one of the first budgets to be slashed is their
advertising spends. Even within the advertising spends, TV being a relatively
more cost-effective medium, the axe first falls on print.
Apart from the
above generic media challenges, they are also faced with an inability to push
their advertising tariffs upwards primarily on account of declining / stagnant
readership coupled with the availability of cheaper competitive alternatives.
This step, again, is taken because of multiple alternatives available and a
growing belief amongst clients that no media brand is non-substitutable.
NEWSPRINT
Year 2010-11 saw
the price of standard Newsprint rise from $560 – 575 per ton to the $680 – 695
per ton, an increase of 21% mainly on account of increasing cost pressures on
the manufacturers. Old Newsprint (ONP), the feedstock for paper manufacturing,
saw price hover near the highs of $240 to $280 per ton while the availability
remained an area of concern as consumption dropped in developed economies of
North America and Europe. Crude was moving in a narrow corridor of $75 to 90
per barrel till 1Q11 where it crossed beyond the $100 limit. Logistics costs
have bounced back from the lows of 2009 as the global trade picked up. All
these factors were responsible for the quarter-on-quarter upward movement of
Newsprint prices. Financials of vendors reflected a mixed picture with vendors
having high share of Newsprint reporting losses while others have been able to
report small profits backed by better return on higher grade papers.
Supply-demand
situation moved into tighter realms as capacity closures in North America and
Europe were implemented while the demand picked up in emerging economies in
Asia and South America. This was also reflected in the increased exports from
manufacturing hubs. China ’s demand matched the consumption and it remained a
closed market for most part of the year catering only to the neighboring
countries.
On the domestic
front, the manufacturers faced tougher conditions as ONP rose to record levels
in the local markets. Many mills were shut for prolonged periods due to poor
recovery from Newsprint and non-availability of costly ONP. Stronger Re was the
only respite as it continued to hold between Rs 44 to 46 per USD.
They have renewed
their focus with North America manufacturers to ensure uninterrupted supplies.
Inventory has been front loaded in the 1st half of the year to reach 90 - 100
day level and the total pipeline of 6 months was created to take adequate cover
in a rising market.
They expect the
market to be bullish as new supply-demand balance will be determined in 2H11
and hence budgeting for 2011-12 reflects the same.
TIMES MUSIC
During the year
2010-11, Times Music maintained genre leadership in Indian classical,
devotional, spiritual and wellness genres and MRP price-points in an extremely
competitive low price-point market. The year saw the launch of Season I of pop-band
hunt “Supastars”, a first for a record label. The event saw a response from
corporates in the form of Advertisements. The goal is to build a long-term
monetizable property like Femina Miss India and Filmfare Awards.
They continue
their new initiatives in the digital space with more digital friendly content
acquisition (especially 3G), launch of mobile apps (first record label in India
to do so). They also invested in in-house infrastructure and building up the
digital team. Digital revenue grew to 8.6Cr. (39% of total revenues).
Also,
re-investment in music repertoire started this year – Home Video identified as
a large emerging sector – hence key investments into the area. They released 3
of the hottest Indie films, Ragini MMS, IaM and Bhindi Bazaar on DVD/VCDs.
Given upcoming
changes in copyright laws and ownerships, Times Music has also started to
register directly with major global copyright collection societies (like BMI ,
ASCAP , MCPS-PRS ) to ensure strict collection of its owned repertoire for
global exploitation. As a strategy, going forward, given the changing nature of
copyright exploitation and ownership and the increasing value of IP, Times
Music is positioning and structuring itself as a "Rights Management"
business - that will in the short to medium term - create, build, license and
acquire music/film related IP and manage/ exploit that IP over a 360 degree
platform - physical retail, global digital, off-air (ground events), sync,
licensing/copyright collection (local + overseas).
The business had a
topline of Rs. 220.000 Millions. for FY 2010-11 with EBITDA Margin of 18%.
Cost-reduction continued to be a focus with expenses falling from Rs. 230.000
Millions. to Rs. 180.000 Millions. this year.
MODERNISATION
Information
Technology
Plans have been
undertaken to look at comprehensive consolidation of systems and processes. As
per the same, all companies within the Times Group would be on SAP, along with
associated operational processes. These include ECC6 Upgrade of SAP software
[Jul-Oct 2011], Comprehensive Time and Attendance System [Jul-Dec 2011], SAP
Hardware Refresh [Feb-Jun2012] and Business Intelligence initiatives.
The year saw
successful roll-outs of SAP at WWM, MNDIL and other smaller Group Companies.
The Times Group
Payroll on SAP Platform christened as ‘Project Asmita’ has also been extended
to all Group Companies very efficiently and effectively. With these, almost 95%
of their processes and systems across the Group are on SAP platform bringing in
advantages of elements of integration and control.
In view of likely
changes in IFRS and other Finance requirements, various developmental projects
to facilitate processes like Inter-Company Consolidation, IFRS implications,
Investment Module, Monthly MIS, etc., were undertaken and completed during the
year.
The Plant
Maintenance Module of SAP was also implemented in a phased manner during the
year across various printing presses of the Company.
RMD Circulation
initiatives like Fleet Management, automation of billing, Subscription and call
centre Management were successfully executed as per the requirements of RMD.
Press Projects
The following
press projects were part of capital work in progress as on 31 st March 2011 and
the current status is as follows:
Regioman Project at
Bangalore – commissioned in April 2011 Regioman Project at Kolkata –
commissioned in September 2011 Regioman Project at Chennai – likely to be
commissioned in second quarter of 2012.
Further, Regioman and Cromoman Project at Pune has commenced activities
in June 2011 and is expected to go live by February 2012.
The Capital
Expenditure program for 2011-12 has also been finalized to incorporate the
above initiatives and other likely minor projects. New Press Plans for Nagpur,
Kochi , Ahmedabad expansion, etc., are also being planned.
PRODUCTION
PROJECTS COMPLETED IN 2010-11
1) Installed and
commissioned of new Hiline 6 Tower Machine at Lucknow Plant on 11 th May 2010.
2) Installed and
commissioned of 2 nos. new Krause CTP machines at Lucknow Plant on 18 th
December 2010.
3) Installed and
Commissioned of 2 Hiline Towers (one for each) on both NL 45 machines at
Kolkata Plant on 12 th September 2010.
4) Installed and
commissioned of 1 No. new ECRM semi auto CTP machine at Kandivli on 17 th
January 2011.
5) Installed and
commissioned of 1 No. new Krause CTP machine at Kandivli on 17 th January 2011.
6) Installed and
commissioned of 1 No. new Hiline Press at Coimbatore Plant on 14 th February
2011.
7) Binuscan Ink
optimisation software installed nationally on 5 th December 2010, at all
locations resulting in cost saving of approximately Rs. 50.000 Millionss
8) CCI Editorial software rolled out in ET nationally and TOI rolled out
nationally except in Bangalore; Jaipur and Hyderabad as of date.
Succession Planning and Leadership Development
The Succession
Planning and Leadership Development process has been formally introduced in the
Company. The first step towards creating a leadership pipeline has been closed
with the filling up of position descriptions forms for 511 unique positions
across functions in the Company.
This initiative is
first of its kind in the media Industry. The Phase II of this initiative which
is currently underway will consist of making the Behavioral Competency
Framework which will ultimately culminate into rolling out of Assessment and
Development Centers for Current and Potential Successors. Migration to SAP
Payroll As part of HR drive to automate and graduate into platforms which are
best in class, the Company has been able to successfully migrate Payroll
process to SAP leading to greater operational efficiencies as well as reducing
the Payroll process time. This movement is expected to provide synergies for
other automations and seam transitions to follow.
CONTINGENT LIABILITIES
NOT PROVIDED FOR:
|
Particular |
As
on 31.03.2011 (Rs.
in Millions) |
|
Claims against the company no acknowledged as debts labour claims |
39.683 |
|
Others excluding cases with remote probability as per legal opinion
obtained. |
46.937 |
|
Disputes sales tax matter (includes interest up to the date of
demand.) |
27.154 |
|
Corporate guarantees given to bankers for credit facilities availed by
subsidiary companies |
3144.670 |
|
Uncalled liability on partly paid shares |
323.000 |
|
Estimated amount of contracts remaining to be executed on capital
account |
12798.450 |
|
Total |
16379.894 |
BANKERS CHARGES
REPORT AS PER REGISTRY
|
This form is for |
Creation of charge |
|
Corporate identity number of the company |
U22120MH1913PLC000391 |
|
Name of the company |
BENNETT COLEMAN AND COMPANY LIMITED |
|
Address of the registered office or of the principal place of business in India of the company |
The Times of India
Building, N Road, Mumbai 400001, Maharashtra, India |
|
Type of charge |
Movable Property |
|
Particular of charge holder |
The Hong
Kong and Shanghai Banking Corporation
Limited, Hong Kong Bank Building, 52/60, Mahatma Gandhi Road, Fort,
Mumbai-400001, Maharashtra, India Email: meghnavaidya@hsbc.co.in
|
|
Nature of description of the instrument creating or modifying the
charge |
Hypothecation Agreement for Plant and Machinery. |
|
Date of instrument Creating the charge |
10.09.2008 |
|
Amount secured by the charge |
Rs.1484.954 Millions |
|
Brief particulars of the principal terms an conditions and extent and
operation of the charge |
Rate of Interest As determined by the Bank and agreed with the Bank. Terms of Repayment As determined by the Bank and agreed with the Bank. Margin As applicable if any. Extent and Operation of the charge The Hongkong and Shanghai Banking Corporation Limited is having charge
on the security offered by the Borrower. The Bank has given facility limit of
INR equivalent of EURO 23,330,000/-. |
|
Short particulars of the property charged |
Hypothecation on Single Copy Conveying System, On-line Inserting
System, Compensated Stacking System, Wrapping and Strapping System, Mailroom
Control Software, including and machinery spares, tools and accessories and
other movables. |
FIXED ASSETS:
· Land (Leased and Freehold)
· Land and Building (Leased and Freehold)
- Building
- Plant and machinery
- Furniture and Fixture And Office equipments
- Vehicles
- Drawing and Business commercial rights
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 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.55.85 |
|
|
1 |
Rs.87.93 |
|
Euro |
1 |
Rs.70.88 |
INFORMATION DETAILS
|
Information
Gathered by : |
PJA |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
10 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
82 |
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.