MIRA INFORM REPORT

 

 

Report Date :

20.04.2013

 

IDENTIFICATION DETAILS

 

Name :

MEDIA CONTENT AND COMMUNICATIONS SERVICES (INDIA) PRIVATE LIMITED

 

 

Registered Office :

301, 3rd Floor, Boston House, Suren Road, Western Express Highway, Andheri (East), Mumbai – 400093, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

30.05.2002

 

 

Com. Reg. No.:

11-136072

 

 

Capital Investment / Paid-up Capital :

Rs. 2865.300 Millions

 

 

CIN No.:

[Company Identification No.]

U92132MH2002PTC136072

 

 

PAN No.:

[Permanent Account No.]

AADCM0507A

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

The Company is in the business of content production and broadcasting three news channels through the television and digital media which includes internet, mobile and Direct-to-Home.

 

 

No. of Employees :

Information Denied by the Management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (35)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 1000000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct 

 

 

Litigation :

Clear 

 

 

Comments :

Subject is a subsidiary of ABPTV Private Limited, India. It is a well established company having moderate track record. 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 but correct.

 

In view of strong promoter, the company can be considered normal for business dealings with slight caution.  

 

NOTES :

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

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

Bank Facilities : BBB-

Rating Explanation

Moderate degree of safety. It carry moderate credit risk.

Date

April, 2012

 

 

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 DENIED BY

 

Name :

Mr. Guarav

Designation :

Accountant

Contact No.:

91-22-66160200

Date :

19.04.2013

 

 

LOCATIONS

 

Registered Office :

301, 3rd Floor, Boston House, Suren Road, Western Express Highway, Andheri (East), Mumbai – 400093, Maharashtra, India

Tel. No.:

91-22-66630208/ 66630000

Fax No.:

91-22-66661022/ 66631029/ 66160243

E-Mail :

zahra.basrai@abp.in

anuradhab@abpnews.in

sales@abpnews.in

vacancies@abpnews.in

distribution@abpnews.in      

Website :

www.starnews.com

http://www.mccsindia.com

Location :

Owned

 

 

Branch Office 1 :

A – 37, Sector – 60, Noida – 201307, Uttar Pradesh, India

Tel. No.:

91-120-4070000/ 196

 

 

Branch Office 2 :

13, Jamir Lane, 3rd Floor, Gariahat Mall, Kolkata – 700019, West Bengal, India

Tel. No.:

91-33-44010300

Fax No.:

91-33-44010228

 

 

Branch Office 3 :

Star News Centre, Off Dr. E Moses Road, Mahalaxmi, Mumbai – 400011, Maharashtra, India

Tel. No.:

91-22-66630000

Fax No.:

91-22-66631029

 

 

DIRECTORS

 

As on: 28.09.2012

 

Name :

Mr. Avijit Deb

Designation :

Director

Address :

1 Rajendra Deb Road, Bura Bazar, Kolkata – 700007, West Bengal, India

Date of Birth/Age :

01.09.1947

Date of Appointment :

01.09.2005

DIN No.:

00047233

 

 

Name :

Mr. Dipankar Das Purkayastha

Designation :

Director

Address :

Flat-2A, 23-B, Ballygunge Circular Road, Kolkata – 700019, West Bengal, India

Date of Birth/Age :

01.09.1947

Date of Appointment :

24.11.2005

DIN No.:

00194147

 

 

Name :

Mr. Arup Kumar Sarkar

Designation :

Director

Address :

20, Madan Mohantola Street, Kolkata – 700005, West Bengal, India

Date of Birth/Age :

16.08.1946

Date of Appointment :

19.09.2003

DIN No.:

00200053

 

 

Name :

Mr. Aveek Kumar Sarkar

Designation :

Director

Address :

12/4, Ballygunge Park Road, Kolkata – 700019, West Bengal, India

Date of Birth/Age :

09.06.1945

Date of Appointment :

19.09.2003

DIN No.:

00224290

 

 

Name :

Mr. Sanjay Gupta

Designation :

Nominee director

Address :

14-A, Manek, L. D. Ruperal Marg, Malabar Hill, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

08.09.1967

Date of Appointment :

13.06.2012

DIN No.:

05100297

 

 

KEY EXECUTIVES

 

Name :

Mr. Guarav

Designation :

Accountant

 

 

Name :

Mr. Ashok Venkatramani

Designation :

Chief Executive Officer and Manager 

Address :

A – 62, 6th Floor, Meherina Apartments, 51 C, Napean Sea Road, Mumbai – 400026, Maharashtra, India

Qualification :

BE(Mech), PGDM

Experience :

25 Years

PAN No. :

ADXPA6170D

 

 

Name :

Mr. Anupam Kumar Chugh

Designation :

Secretary

Address :

152, Kewal Kunj Appartments, Plot No. 46, Sector – 13, Rohini, Delhi – 110085, India

Date of Appointment :

10.04.2007

PAN No. :

AABPC8344E

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 28.09.2012

 

Names of Shareholders

No. of Shares

ABP TV Private Limited, India

212032200

Star News Broadcasters Limited, Tortola, British Virgin Island

74497800

Total

286530000

 

 

Equity Share Break up (Percentage of Total Equity)

 

As on: 28.09.2012

 

Category

Percentage

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

 

Bodies corporate

 

Directors or relatives of Directors

 

Other top fifty shareholders

 

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

The Company is in the business of content production and broadcasting three news channels through the television and digital media which includes internet, mobile and Direct-to-Home.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information Denied by the Management

 

 

Bankers :

·         Axis Bank Limited, Corporate Banking Branch, 1, Shakespeare Sarani, Ac Market, 3rd Floor,, Kolkata - 700071, West Bengal, India

·         ING Vysya Bank Limited, Nariman Point, Mumbai – 400021, Maharashtra, India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2012

As on

31.03.2011

Working capital loans from banks

0.000

59.173

Total

0.000

59.173

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

7th Floor, Building 10, Tower B, DLF Cyber City Complex, Gurgaon – 122002, Haryana, India

Tel. No.:

91-124-6792000

Fax No.:

91-124-6792012

PAN.:

AABFD2095B

 

 

Holding Company :

ABP TV Private Limited, India

CIN No.: U92113WB2000PTC092157

 

 

Ultimate Holding Company :

ABP Private Limited, India

CIN No.: U22219WB1922PTC004503

 

 

Companies holding substantial interest in voting power of the Company:

Star News Broadcasting Limited, Hong Kong

 

 

CAPITAL STRUCTURE

 

As on: 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

400000000

Equity Shares

Rs.10/- each

Rs. 4000.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

286530000

Equity Shares

Rs.10/- each

Rs. 2865.300 Millions

 

 

 

 

 

 

After: 28.09.2012

 

Authorised Capital : Rs. 4000.000 Millions

 

Issued, Subscribed & Paid-up Capital : Rs. 2914.000 Millions

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

2865.300

2865.300

2677.500

2] Share Application Money

0.000

0.000

187.800

3] Reserves & Surplus

0.000

0.000

0.000

4] (Accumulated Losses)

(2379.315)

(2508.994)

(2603.326)

NETWORTH

485.985

356.306

261.974

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

59.173

343.607

2] Unsecured Loans

49.791

26.135

0.000

TOTAL BORROWING

49.791

85.308

343.607

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

535.776

441.614

605.581

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

302.271

302.693

284.013

Capital work-in-progress (including Capital Advance)

0.435

30.587

9.834

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

0.338
0.081
0.513

 

Sundry Debtors

548.295
639.236
549.571

 

Cash & Bank Balances

158.628
75.337
246.374

 

Other Current Assets

10.450
5.697
0.000

 

Loans & Advances

230.353
216.017
159.851

Total Current Assets

948.064
 936.368
956.309

Less : CURRENT LIABILITIES & PROVISIONS

 
 
 

 

Sundry Creditors

435.441
504.614
478.203

 

Other Current Liabilities

224.624
285.664
137.695

 

Provisions

54.929
37.756
28.677

Total Current Liabilities

714.994
828.034
644.575

Net Current Assets

233.070
108.334
311.734

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

535.776

441.614

605.581

 

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

 

2507.900

2288.500

 

 

Other Income

 

105.300

47.800

 

 

TOTAL                                     (A)

 

2613.200

2336.300

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Employee Benefit Expenses

 

782.200

647.100

 

 

Other Expenses

 

1606.900

1500.400

 

 

TOTAL                                     (B)

 

2389.100

2147.500

 

 

 

 

 

Less

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

 

224.100

188.800

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

 

16.800

30.300

 

 

 

 

 

 

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

 

207.300

158.500

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

 

77.600

64.200

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

 

129.700

94.300

 

 

 

 

 

Less

TAX                                                                  (H)

 

0.000

0.000

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

 

129.700

94.300

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

 

(2509.026)

(2603.326)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

 

(2379.326)

(2509.026)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

 

11.147

14.795

 

TOTAL EARNINGS

 

11.147

14.795

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

0.45

(1.11)

 

 

 

PARTICULARS

 

 

31.03.2010

 

SALES

 

 

 

 

 

Income from operations

 

 

2069.019

 

 

Other Income

 

 

62.323

 

 

TOTAL                                     (A)

 

 

2131.342

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Operating and other Expenses

 

 

2007.459

 

 

TOTAL                                     (B)

 

 

2007.459

 

 

 

 

 

Less

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

 

 

123.883

 

 

 

 

 

Less

INTEREST AND FINANCIAL EXPENSES            (D)

 

 

57.956

 

 

 

 

 

 

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

 

 

65.927

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

 

 

121.685

 

 

 

 

 

 

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

 

 

(55.758)

 

 

 

 

 

Less

TAX                                                                  (H)

 

 

0.000

 

 

 

 

 

 

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

 

 

(55.758)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

 

 

(2547.568)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

 

 

(2603.326)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

 

 

38.730

 

TOTAL EARNINGS

 

 

38.730

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

 

 

(0.67)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

4.96
4.04
(2.62)

 

 

 
 
 

Net Profit Margin

(PBT/Sales)

(%)

5.17
4.12
(2.69)

 

 

 
 
 

Return on Total Assets

(PBT/Total Assets}

(%)

10.37
7.61
(4.49)

 

 

 
 
 

Return on Investment (ROI)

(PBT/Networth)

 

0.27
0.26
(0.21)

 

 

 
 
 

Debt Equity Ratio

(Total Debt /Networth)

 

0.10
0.24
1.31

 

 

 
 
 

Current Ratio

(Current Asset/Current Liability)

 

1.33
1.13
1.48

 

 

LOCAL AGENCY FURTHER INFORMATION

 

DETAILS OF SUNDRY CREDITORS

(Rs. In Millions)

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

Sundry Creditors

 

 

 

- Micro and small enterprises

435.441
504.614
478.203

Total

435.441
504.614
478.203

 

 

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

No

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

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

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

Yes

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

 

NOTE:

 

The registered office of the company has been shifted from Star News Centre, Off Dr. E. Moses Road, Mahalaxmi

Mumbai – 400011, Maharashtra, India to present address w.e.f. 09.03.2012

 

 

PERFORMANCE:

 

During the financial year 2011-12, Company’s total revenue from operations has been Rs. 2613.200 Millions compared to Rs. 2336.293 Millions last year, an increase of 12%. EBITDA has been Rs. 224.100 Millions as against Rs.188.798 Millions last year, a growth of 19%. Profit before tax has been Rs. 129.700 Millions as compared to Rs. 94.332 Millions last year, registering a growth of 37% over the last year. Profit after tax has been Rs. 129.700 Millions compared to Rs. 94.332 Millions last year, registering a growth of 37% over the last year.

 

The year has been mixed - while the start was good, driven by elections in Bengal, a spate of activities and price increases in regional channels, the impact of slow down was evident after Q2. The news genre share continued to decline and in that scenario the Hindi and Bangla channels lost viewership to non news genres. However, the Company was able to keep the momentum and grow faster than its competitors and the genre. Overall, in line with the trends, the regional channels fared much better than the national channels.

 

With strong thrust on cutting costs and unimportant expenses, they were able to keep their overall operating expenses under check and thus were able to deliver on their aggressive PBT numbers.

 

 

BANKERS CHARGES REPORT AS PER REGISTRY

 

Corporate identity number of the company

U92132MH2002PTC136072

Name of the company

MEDIA CONTENT AND COMMUNICATIONS SERVICES (INDIA ) PRIVATE LIMITED

Address of the registered office or of the principal place of  business in India of the company

301, 3rd Floor, Boston House, Suren Road, Western Express Highway, Andheri (East), Mumbai – 400093, Maharashtra, India

zahra.basrai@abp.in

This form is for

Modification of charge

Charge identification (ID) number of the charge to be modified

10022716

Type of charge

·         Book debts

·         Movable property (not being pledge)

·         Others

Particular of charge holder

Axis Bank Limited, Corporate Banking Branch, 1, Shakespeare Sarani, Ac Market, 3rd Floor,, Kolkata - 700071, West Bengal, India

Chaitalim8.Thakur@axisbank.com

Nature of instrument creating charge

Supplemental Deed of Hypothecation

Date of instrument Creating the charge

26.11.2012

Amount secured by the charge

Rs. 580.000 Millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of Interest

Interest will be charged for Term Loan: Base Rate + 3.50% i.e. 13.50% presently, payable monthly.

 

Terms of Repayment

Cash Credit repayable on demand.

The Term Loan is for a period of 5 years including one year of moratorium period from the date of first disbursement. Repayment schedule is as follows:-

First 4 quarterly installment of Rs.12.500 Millions each,

Next 4 quarterly installments of Rs.20.000 Millions each,

Subsequent 4 quarterly installments of Rs.30.000 Millions each,

Last 4 quarterly installment of Rs.37.500 Millions each.

 

Margin

Cash Credit: RMS, SIP, FGs and Pkg. Material, Stores and Spares, Book Debts (Cover period upto 90 days): 25%,

Term Loan: 23.92%, Bank Guarantee: 5%, 100% cash margin in case of disputed liabilities.

 

Extent and Operation of the charge

Extension of first charge on all the assets of the Company including all programming assets, both present and future.

Extension of first charge on all current/ non current assets of the company including all book debts, stocks and cash flows.

Routing of the company's cash flows both present and future through the accounts maintained with us.

Short particulars of the property or asset(s) charged (including complete address and location of the property)

·         First charge basis for the Working Capital limit, all the stock in trade both present and future consisting stock including raw materials, stock in process, finished goods, cash and other current assets and

·         Outstanding, monies, receivables, claims and bills etc.

·         First charge, all the movable plant and machinery, furnitures, fixtures etc, both present and future, being movable properties or at present installed at Different parts of the Country except assets

·         purchased on hire purchase basis.

Date of instrument modifying the charge

17.07.2012

Particulars of the present modification

By this modification, Overall limit has been increased/ realigned/ revised from Rs.180.000 Millions to Rs.580.000 Millions. The details of credit facilities are as under:-

 

Facilities                  Amount

Cash Credit              Rs.180.000 Millions

Term Loan                Rs.400.000 Millions

Bank Guarantee    Rs.100.000 Millions (Sub limit of Cash Credit limit)

   Total limit             Rs.580.000 Millions

Other terms and conditions remain unchanged.

 

 

REVENUE

 

MCCS continued to show growth in revenue, while most news broadcasters either declined or maintained the same level. This year’s growth has been remarkable because Hindi News share declined and most news broadcaster failed to increase rate further, while for them the growth came from rate increase across all three channels.

 

Star News

 

Star News revenue grew despite lower consumption of inventory, stiff competition and low pricing by competition. This growth came from increase in Commercial Time Rate, unprecedented revenue from State Election and high revenue from Union Budget and Cricket. This growth was achieved despite a sharp decline in Govvernment advertising and a poor festival season. The Channel viewership tossed between number 2 and 3 position but in cost per rating point it maintained a number 3 or 4 position. However, by selling more non FCT and channel properties, the Channel managed to arrest the impact of expensive spots. The Channel also increased its client base and revenue by geographical expansion in State of UP, UK , PHCHP, and Rajasthan.

 

Star Ananda

 

It's strong leadership position again helped them grow both rate and revenue in double digit. While there was a decline in ad break inventory, they showed double digit growth in revenue from Non FCT, premium from channel properties and premium from events. WB election helped them grow too. However the same was offset by drying up of government advertising revenue. The Channel managed to grow despite a stiff competition not only from news channels but also from Begali GEC. We expanded the market and revenue growth by bringing sustainable revenue for the first time from places like Ranchi, Raipur, Odhisa, and south Bengal.

 

Star Majha

 

Majha showed double digit growth of revenue from both corporate and SME's sector. It's effectiveness in CPRP and combination with Hindi News was major growth reason. Growth in Majha came from both rate increase of commercial time and also utilisation of more commercial time. While the revenue growth contribution to Majha came from all parts of India, they expanded the geographical market by setting up revenue offices in different parts of Maharashtra.

 

Syndication Revenues

 

The channel has continued to earn its normal fixed-fee Syndication revenue on the news feed sent out of India through the STAR system.

 

 

OUTLOOK FOR 2012-13

 

2011-12 was a year of economic uncertainty and many sectors like finance , automobiles etc , which spend heavily on news genres, were facing poor growths and so had curtailed their spends. Advertisers in general grew cautious and started demanding greater value and not keen on committing to any longer term deals. The coming year is likely to be tough, with continued economic uncertainties, poor economic growth, political indecisiveness driving advertiser behavior and actions.

 

The Company migrated from the Star brand to ABP with effect from June 1, 2012. Further, in continuation of the association with Star, the shareholders requested that the Preference shares held by them in the Company, be converted into Equity shares. This process was completed on April 30, 2012.

 

The key challenges for 2012-13 would be their ability to manage the brand migration from Star to ABP, ability to retain price leadership and progress on cable sector digitalization. Genre share is expected to decline marginally and Government likely to push aggressively for inventory cap for the broadcast industry.

 

Manage smoothly the brand migration

 

· Leveraging on the success of events / special projects as a revenue stream as it helps improve margin and prices, while providing customized activation platform for client brands

 

· Continue to manage costs tightly to ensure that they maintain the advantage.

 

· Driving viewership share through a well thought out re launch activity for ABP channels, post brand migration.

 

This would be based on a new editorial strategy which would ensure that they stick to strong mainstream news, launch 5 new programs and take a high ground on news coverage in an endeavor to achieve the leadership position in the Hindi News Genre. This activity would be amply supported by marketing initiative to reposition the brand. It is expected that the implementation of the above strategies will help in achieving the desired objectives.

 

 

CONTINGENT LIABILITIES

 

a. Estimated amount of contracts to be executed on capital account Rs. 4.438 Millions (Previous year Rs. 3.478 Millions).

 

b. The Company has purchased fixed assets under the ‘Export Promotion Capital Goods Scheme’. As per the terms of the license granted under the scheme, the Company had undertaken to achieve an export commitment of Rs. 957.297 Millions (Previous year Rs. 957.297 Millions) over a period of 9 years. The period was subsequently extended to 10 years and expires on 23 October, 2012. The Company may be liable to pay customs duty of Rs. 107.437 Millions (Previous year Rs. 107.437 Millions) and interest on the same at the rate of 15 per cent compounded annually in the event of non-fulfillment of the export obligations.

 

The Company has fulfilled its export obligations of Rs. 865.847 Millions (Previous year Rs. 808.499 Millions) till 31 March, 2012, the balance export obligation being Rs. 91.450 Millions (Previous year Rs 148.798 Millions). The Company will make an application to the Director General of Foreign Trade for issuance of the export obligation discharge certificates (EODC) after the completion of the outstanding export obligation.

 

 

UNSECURED LOAN

(Rs in Millions)

Particular

As on

31.03.2012

As on

31.03.2011

Other loans and advances

49.791

26.135

Total

49.791

26.135

 

 

FIXED ASSETS

 

·         Leasehold Improvements

·         Plant and Machinery

·         Computers

·         Office Equipment

·         Furniture and Fixtures

·         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 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 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. 54.03

UK Pound

1

Rs. 82.43

Euro

1

Rs. 70.49

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

UDS

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

2

--CREDIT LINES

1~10

3

--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

--DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

35

 

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.