MIRA INFORM REPORT

 

 

Report Date :

06.12.2013

 

IDENTIFICATION DETAILS

 

Name :

DEN NETWORKS LIMITED

 

 

Registered Office :

236, Okhla Industrial Estate, Phase-III, New Delhi - 110020

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

10.07.2007

 

 

Com. Reg. No.:

55-165673

 

 

Capital Investment / Paid-up Capital :

Rs.1327.710 Millions

 

 

CIN No.:

[Company Identification No.]

L92490DL2007PLC165673

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Distribution and promotion of television channels and related services.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (55)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 32500000

 

 

Status :

Good 

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an India’s leading cable TV distribution company. It is an established company having satisfactory track record.

 

Financial position of the company appears to be decent. Over all fundamentals of the company appears to be sound and healthy.

 

Directors are reported to be experienced and respectable businessmen.

 

Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered 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.

 

 

ECGC Country Risk Classification List – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

INDIAN ECONOMIC OVERVIEW

 

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

 

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

 

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

 

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1st November.

 

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

A (Term Loan)

Rating Explanation

Adequate degree of safety and low credit risk. 

Date

November 2013

 

Rating Agency Name

ICRA

Rating

A1 (Non Fund Based Facilities)

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

November 2013

 

 

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.

 

LOCATIONS

 

Registered Office/ Corporate Office :

236, Okhla Industrial Estate, Phase-III, New Delhi – 110020, India

Tel. No.:

91-11-40522200

Fax No.:

91-11-40522203

E-Mail :

jatin.mahajan@denonline.in

Website :

www.dennetworks.com

 

 

Branch Offices :

Located at:

 

·         Delhi

·         Nasik

·         Lucknow

·         Pune

·         Kochi

·         Surat

·         Kanpur

·         Jaipur

·         Mumbai

·         Navi Mumbai

·         Vadodara

·         Bangalore

 

 

DIRECTORS

 

As on: 31.03.2013        

 

Name :

Mr. Sameer Manchanda

Designation :

Chairman and Managing Director

 

 

Name :

Mr. Shahzaad Siraj Dalal

Designation :

Nominee Director

 

 

Name :

Mr. Krishna Kumar

Designation :

Alternate Director

 

 

Name :

Mr. Ajaya Chand

Designation :

Non Executive, Independent Director

 

 

Name :

Mr. Robindra Sharma

Designation :

Non Executive, Independent Director

 

 

Name :

Mr. Atul Sharma

Designation :

Non Executive, Independent Director

 

 

KEY EXECUTIVES

 

Name :

Jatin Mahajan

Designation :

Company Secretaries

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 30.09.2013

 

Category of Shareholder

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

50807950

34.68

http://www.bseindia.com/include/images/clear.gifBodies Corporate

20552470

14.03

http://www.bseindia.com/include/images/clear.gifSub Total

71360420

48.71

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

71360420

48.71

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

4337213

2.96

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

1907596

1.30

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

27664266

18.88

http://www.bseindia.com/include/images/clear.gifSub Total

33909075

23.15

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

20794872

14.20

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

1231856

0.84

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

9822831

6.71

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

9371368

6.40

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

145432

0.10

http://www.bseindia.com/include/images/clear.gifForeign Corporate Bodies

9138726

6.24

http://www.bseindia.com/include/images/clear.gifClearing Members

86305

0.06

http://www.bseindia.com/include/images/clear.gifTrusts

905

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

41220927

28.14

Total Public shareholding (B)

75130002

51.29

Total (A)+(B)

146490422

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

146490422

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Distribution and promotion of television channels and related services.

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

·         Kotak Mahindra Bank

·         Syndicate Bank

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2013

As on

31.03.2012

LONG-TERM BORROWINGS

 

 

Term loans from banks

2373.510

1892.440

Long-term maturities of finance lease obligations

(Secured by hypothecation of assets purchase under finance lease agreement and payable in equal monthly installments)

1622.130

0.000

Vehicle Loans

(Secured by hypothecation of vehicles and payable in equal monthly installments)

3.540

2.150

SHORT-TERM BORROWINGS

 

 

Loan repayable on demand from banks*

349.480

188.410

Buyers credit on imports**

1579.710

0.000

 

 

 

Total

5928.370

2083.000

 

Notes:

 

Foot notes

31.03.2013

31.03.2012

Term loan from banks

This Term loan from bank is secured by first pari passu charge on fixed assets of the Company (existing and proposed) and second pari passu charge on all current assets of the Company. This Term loan has been repaid during the year.

-

21.59

This Term loan from bank is secured by first pari passu charge on fixed assets of the Company (existing and proposed) and second pari passu charge on all current assets of the Company. The loan is repayable in 5 quarterly installments ending in June-2015. Applicable rate of interest is 14.50%.

137.510

68.38

This Term loan from bank is secured by First pari passu charge on fixed assets of the Company (existing and proposed) and second pari passu charge on all current assets of the Company. This loan is further guaranteed by the Mr. Sameer Manchanda (Chairman and Managing Director of the Company).The loan is repayable in 8 quarterly installments ending in Jan-2016. Applicable rate of interest is 13.00%.

369.750

247.450

This Term loan from bank is secured by First pari passu charge on fixed assets of the Company (existing and proposed) and second pari passu charge on all current assets of the Company. his loan is further guaranteed by the Mr. Sameer Manchanda (Chairman and Managing Director of the Company). The loan is repayable in 13 quarterly installments ending in Apr-2017. Applicable rate of interest is 13.00%.

211.270

555.020

This Term loan from bank is secured by first pari passu charge on fixed assets of the Company (existing and proposed) and second pari passu charge on all current assets of the Company. The loan is repayable in 17 quarterly installments ending in May-2018. Applicable rate of interest is 12.75%.

54.980

0.000

ii. Term loan from financial institution

This Term loan from bank is secured by First pari passu charge on fixed assets of the Company (existing and proposed) and first pari passu charge on all current assets of the Company. Pledge of shares held by the Company in its Subsidiaries and Joint Ventures, both present and future. The loan is repayable in 16 quarterly installments ending in Mar-2018. Applicable rate of interest is 12.75% to 12.85%.

1600.000

1000.000

 

* secured by first pari passu charge on current assets of the Company both existing and future and second pari passu charge on all fixed assets of the Company both existing and future.

 

** a. "Under arrangement from Kotak Mahindra Bank is secured by first pari passu charge on fixed assets of the Company (existing and proposed) and second pari passu charge on all

current assets of the Company."

599.400

0.000

b. Under arrangement from Syndicate Bank is secured by first pari passu charge on fixed assets of the Company (existing and proposed) and second pari passu charge on all current assets of

the Company and is further guaranteed by Mr. Sameer Manchanda (Chairman and Managing Director of the Company).

980.310

0.000

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

 

 

Related parties where control exists :

·         Subsidiaries held direct

·         Den Mahendra Satellite Private Limited (w.e.f. 27-Dec-07)

·         Den Mod Max Cable Network Private Limited (w.e.f. 27-Dec-07)

·         Den Krishna Cable TV Network Private Limited (w.e.f. 27-Dec-07)

·         Den Pawan Cable Network Private Limited (w.e.f. 27-Dec-07)

·         DEN BCN Suncity Network Private Limited (w.e.f. 27-Dec-07)

·         Den Harsh Mann Cable Network Private Limited (w.e.f. 1-Mar-08)

·         Den Classic Cable TV Services Private Limited (w.e.f. 1-May-08)

·         DEN Bindra Network Private Limited (w.e.f. 1-Jul-08)

·         DEN Montooshah Network Private Limited (w.e.f. 16-Jul-08)

·         DEN Ashu Cable Private Limited (w.e.f. 22-Aug-08)

·         Dew Shree Network Private Limited (w.e.f. 26-Sep-07)

·         Shree Siddhivinayak Cable Network Private Limited (w.e.f. 1-Dec-07)

·         Drashti Cable Network Private Limited (w.e.f. 1-Apr-08)

·         DEN MCN Cable Network Private Limited (w.e.f. 8-Apr-08)

·         Mahadev Den Network Private Limited (w.e.f. 1-Feb-08)

·         Mahadev Den Cable Network Private Limited (w.e.f. 1-Feb-08)

·         Den Patel Entertainment Network Private Limited (formerly known as Mahadev Den Cable Net Private Limited (w.e.f. 1-Feb-08)

·         DEN Digital Cable Network Private Limited (w.e.f. 1-May-08)

·         Den Malayalam Telenet Private Limited (w.e.f. 22-Aug-08)

·         DEN Bellary City Cable Private Limited (w.e.f. 1-Jan-09)

·         DEN-Manoranjan Satellite Private Limited (w.e.f. 1-Mar-08)

·         DEN Supreme Satellite Vision Private Limited (w.e.f. 30-May-08)

·         DEN Nashik City Cable Network Private Limited (w.e.f. 26-Jun-08)

·         Radiant Satellite (India) Private Limited (w.e.f. 2-Apr-08)

·         Den Radiant Satelite Cable Network Private Limited (w.e.f. 2-Apr-08)

·         Den Mewar Rajdev Cable Network Private Limited (w.e.f. 2-Apr-08)

·         DEN RIS Cable Network Private Limited (w.e.f. 1-Jun-08)

·         DEN Sky Media Network Private Limited (w.e.f. 31-May-08)

·         Den Prince Network Private Limited (w.e.f. 1-Feb-08)

·         Den Varun Cable Network Private Limited (w.e.f. 7-Jan-08)

·         Den Crystal Vision Network Private Limited (w.e.f. 27-Dec-07)

·         Meerut Cable Network Private Limited (w.e.f. 1-Dec-07)

·         DEN Jai Ambey Vision Cable Private Limited (w.e.f. 5-Apr-08)

·         DEN Fateh Marketing Private Limited (w.e.f. 9-Apr-08)

·         Den Prayag Cable Networks Private Limited (w.e.f. 1-Feb-08)

·         Den Enjoy Cable Networks Private Limited (w.e.f. 2-Apr-08)

·         Den Maa Sharda Vision Cable Networks Private Limited (w.e.f. 1-Apr-08)

·         Den F K Cable TV Network Private Limited (w.e.f. 1-May-08)

·         Den Shiva Cable Network Private Limited (w.e.f. 1-May-08)

·         Den Pradeep Cable Network Private Limited (w.e.f. 1-Feb-08)

·         Den Satellite Cable TV Network Private Limited (w.e.f. 1-Apr-08)

·         Den Narmada Network Private Limited (w.e.f. 1-Sep-08)

·         Den Ambey Cable Networks Private Limited (w.e.f. 11-Sep-07)

·         Den Budaun Cable Network Private Limited (w.e.f. 1-Oct-08)

·         DEN Aman Entertainment Private Limited (w.e.f. 1-Oct-08)

·         Den Kashi Cable Network Private Limited (w.e.f. 1-Mar-08)

·         Den Futuristic Cable Networks Private Limited (w.e.f. 9-Oct-07)

·         Den Digital Entertainment Gujarat Private Limited (w.e.f. 31-May-08)

·         Aster Entertainment Private Limited (w.e.f. 31-May-08)

·         Den Entertainment Network Private Limited (w.e.f. 1-Sep-07)

·         Shine Cable Network Private Limited (w.e.f. 1-Dec-08)

·         Den Rajkot City Communication Private Limited (formerly known as Rajkot City Communication Private Limited) (w.e.f. 10-Apr-09)

·         Den Elgee Cable Vision Private Limited (w.e.f. 3-Jun-09)

·         Den Malabar Cable Vision Private Limited (w.e.f. 30-Apr-09) 55. Amogh Broad Band Services Private Limited (w.e.f. 29-Jul-09)

·         Galaxy Den Media and Entertainment Private Limited (w.e.f. 15-Jul-09)

·         Den UCN Network India Private Limited (w.e.f. 25-Jul-09)

·         Bali Den Cable Network Private Limited (w.e.f. 1-Sep-09)

·         Mahavir Den Entertainment Private Limited (w.e.f. 1-Sep-09)

·         Den Citi Channel Private Limited (w.e.f. 16-Nov-09)

·         Den Satellite Network Private Limited (w.e.f. 15-Jan-10)

·         Fab Den Network Private Limited (w.e.f. 1-Jan-10)

·         Fortune (Baroda) Network Private Limited (w.e.f. 31-Jul-09)

·         Den Infoking Channel Entertainers Private Limited (w.e.f. 1-Aug-09)

·         United Cable Network (Digital) Private Limited (w.e.f. 1-Apr-10)

·         Shri Ram Den Network Private Limited (w.e.f. 1-Apr-10)

·         Den Krishna Vision Private Limited (w.e.f. 1-Apr-10)

·         CAB-I-NET Communications Private Limited (w.e.f. 1-May-10)

·         Den Sahyog Cable Network Private Limited (w.e.f. 1-Jul-10)

·         Den Sariga Communications Private Limited (w.e.f. 1-Aug-10)

·         IME Networks Private Limited (w.e.f. 27-Sep-10)

·         Den Kattakada Telecasting and Cable Services Private Limited (w.e.f. 1-Oct-10)

·         Den A.F. Communication Private Limited (w.e.f. 1-Dec-10)

·         Sree Gokulam Starnet Communication Private Limited (w.e.f. 24-Jan-11)

·         Big Den Entertainment Private Limited (w.e.f. 1-Feb-11)

·         Ambika Den Cable Network Private Limited (w.e.f. 1-Jul-11)

·         Den Steel City Cable Network Private Limited (w.e.f. 1-Jul-11)

·         Crystal Vision Media Private Limited (w.e.f. 12-Jul-11)

·         Victor Cable TV Network Private Limited (w.e.f. 13-Jul-11)

·         Sanmati Den Cable TV Network Private Limited (w.e.f. 25-Aug-11)

·         Multi Channel Cable Network Private Limited (w.e.f. 1-Sep-11)

·         Gemini Cable Network Private Limited (w.e.f. 1-Oct-11)

·         Multi Star Cable Network Private Limited (w.e.f. 1-Oct-11)

·         VM Magic Entertainment Private Limited (w.e.f. 1-Oct-11)

·         Matrix Cable Network Private Limited (w.e.f. 1-Oct-11)

·         Antique Communications Private Limited (w.e.f. 5-Dec-11)

·         Sanmati Entertainment Private Limited (w.e.f. 26-Dec-11)

·         Disk Cable Network Private Limited (w.e.f. 6-Jan-12)

·         Shaakumbari Den Media Private Limited (w.e.f. 1-Feb-12)

·         Silverline Television Network Private Limited (w.e.f. 29-Mar-12)

·         Ekta Entertainment Network Private Limited (w.e.f. 15-Jun-12)

·         Libra Cable Network Private Limited (w.e.f. 1-Feb-13)

·         DEN ADN Network Private Limited (w.e.f. 27-Jul-12)

·          CCN DEN Network Private Limited (w.e.f. 27-Jul-12)

·         Devine Cable Network Private Limited (w.e.f. 1-Sep-12)

·         Nectar Entertainment Private Limited (w.e.f. 1-Sep-12)

·         Pee Cee Cable Network Private Limited (w.e.f. 11-Feb-13)

·         Multitrack Cable Network Private Limited (w.e.f. 1-Nov-12)

·         Glimpse Communications Private Limited (w.e.f. 16-Nov-12)

·         Indradhanush Cable Network Private Limited (w.e.f. 22-Dec-12)

·         Adhunik Cable Network Private Limited (w.e.f. 16-Nov-12)

·         Blossom Entertainment Private Limited (w.e.f. 31-Mar-12)

·         Rose Entertainment Private Limited (w.e.f. 31-Mar-12)

·         Trident Entertainment Private Limited (w.e.f. 31-Mar-12)

·          Eminent Cable Network Private Limited (w.e.f. 31-Mar-12)

 

Subsidiaries held indirectly

·         Den Nanak Communication Private Limited (w.e.f. 1-Mar-08)

·         DEN Saya Channel Network Private Limited (w.e.f. 30-Jun-08)

·         Den Ambey Citi Cable Network Private Limited (w.e.f. 1-Feb-08)

·         Den Enjoy Navaratan Network Private Limited (w.e.f. 2-Apr-08)

·         Den Ambey Jhansi Cable Network Private Limited (w.e.f. 1-Mar-09)

·         Den Deva Cable Network Private Limited (w.e.f. 1-Apr-08)

·         DEN Faction Communication System Private Limited (w.e.f. 1-Oct-08)

·         Den Ambey Farukabad Cable Network Private Limited (w.e.f. 1-Mar-09)

·         Star Channel Den Network Private Limited (w.e.f. 1-Aug-09)

·         Kishna Den Cable Networks Private Limited (w.e.f. 1-Nov-09)

·         Divya Drishti Den Cable Network Private Limited (w.e.f. 1-Apr-10)

·         DEN New Broad Communication Private Limited (w.e.f. 1-Jul-10)

·         Astron Media Networks Private Limited (w.e.f. 27-Sep-10)

·         Fun Cable Network Private Limited (w.e.f. 15-Feb-11)

·         Rajasthan Entertainment Private Limited (w.e.f. 23-Feb-11)

·         Kerela Entertainment Private Limited (w.e.f. 9-Dec-10)

·         Uttar Pradesh Digital Cable Network Private Limited (w.e.f. 4-Apr-11)

·         Saturn Digital Cable Private Limited (w.e.f. 1-Jul-11)

·         Den Enjoy SBNM Cable Network Private Limited (w.e.f. 11-Apr-11)

·         Capital Entertainment Private Limited (w.e.f. 30-Dec-11)

·         Bhadohi DEN Entertainment Private Limited (w.e.f. 5-Dec-11)

·         DEN STN Television Network Private Limited (w.e.f. 1-Aug-12)

·         Platinum Cable TV Network Private Limited (w.e.f. 1-Jan-13)

·         Maitri Cable Network Private Limited (w.e.f. 25-Mar-13)

·         Melody Cable Network Private Limited (w.e.f. 25-Mar-13)

·         Mountain Cable Network Private Limited (w.e.f. 25-Mar-13)

·         Portrait Cable Network Private Limited (w.e.f. 25-Mar-13)

 

 

Jointly controlled entities :

·         Star Den Media Services Private Limited

·         Media Pro Enterprise India Private Limited

 

 

Entities under significant influence :

Setpro 18 Distribution Limited

 

 

CAPITAL STRUCTURE

 

As on: 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

200000000

Equity Shares

Rs.10/- each

Rs.2000.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

134024101

Equity Shares

Rs.10/- each

Rs.1340.240 Millions

 

Less: Amount recoverable from DNL Employee Welfare Trust

 

Rs.12.530 Millions

 

 

 

 

 

Total

 

Rs.1327.710 Millions

 

 

Of the above:

 

a. 72,475,520 equity shares of Rs.10 each were issued in 2009-10 as bonus shares in the ratio of 4:1 for every one equity share by utilisation of securities premium.

 

b. "In 2009-10, the Company issued bonus shares for 39,993,000 .001% cumulative convertible preference shares of Rs.10 each in the ratio of one share for every ten .001% cumulative convertible preference shares held by its shareholders by utilisation from the securities premium account resulting into total of 43,992,300.001% cumulative convertible preference shares. These shares were subsequently converted into 13,361,361 fully paid up equity shares of Rs.10 each in 2009-10

 

c. 4,019,606 fully paid up equity shares of Rs.10 each at premium of Rs.185 were issued in 2009-10 against consideration payable towards investments made in subsidiary companies

 

d. Details of shares held by each shareholder holding more than 5% shares:

 

 

As at 31.03.2013

Name of Shareholder

No. of Shares

% Holding

Sameer Manchanda

46654550

34.81%

Lucid Systems Private Limited

16000000

11.94%

Total

62654550

46.75%

 

e. Details of movement in shareholding of the Company is as follows:

 

 

As at 31.03.2013

Name of Shareholder

No. of Shares

Rs. In Millions

Opening balance

130489975

1304.900

Add : Allotment under ESOP Scheme during the year

3534126

35.340

Closing Balance

134024101

1340.240

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

1327.710

1304.900

1304.900

(b) Reserves & Surplus

6801.680

6266.220

6026.870

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

8129.390

7571.120

7331.770

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

4006.850

1894.590

769.830

(b) Deferred tax liabilities (Net)

14.290

0.000

0.000

(c) Other long term liabilities

0.310

4.280

4.140

(d) long-term provisions

46.350

38.850

27.340

Total Non-current Liabilities (3)

4067.800

1937.720

801.310

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

1929.190

188.410

285.970

(b) Trade payables

1227.770

887.710

653.930

(c) Other current liabilities

2570.10

923.950

1032.050

(d) Short-term provisions

2.090

0.590

0.800

Total Current Liabilities (4)

5729.150

2000.660

1972.750

 

 

 

 

TOTAL

17926.340

11509.500

10105.830

 

 

 

 

ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

4912.680

1916.600

1524.760

(ii) Intangible Assets

87.490

124.680

130.750

(iii) Capital work-in-progress

533.710

740.270

386.880

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

4367.470

3931.290

3577.700

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

460.390

428.360

264.480

(e) Other Non-current assets

747.150

97.540

23.540

Total Non-Current Assets

11108.890

7238.740

5908.110

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

1314.240

223.290

80.970

(c) Trade receivables

1570.440

1194.600

973.230

(d) Cash and cash equivalents

1918.700

1980.280

2192.980

(e) Short-term loans and advances

1022.560

700.490

780.260

(f) Other current assets

991.510

172.100

170.280

Total Current Assets

6817.450

4270.760

4197.720

 

 

 

 

TOTAL

17926.340

11509.500

10105.830

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

6951.450

4302.140

3282.370

 

 

Other Income

316.710

221.240

263.030

 

 

TOTAL                                     (A)

7268.160

4523.380

3545.400

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Operational, administrative and other costs

5231.180

3352.580

2713.990

 

 

Employee benefits expense

456.250

523.740

324.030

 

 

TOTAL                                     (B)

5687.430

3876.320

3038.020

 

 

 

 

 

Less

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

1580.730

647.060

507.380

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

446.840

255.880

186.310

 

 

 

 

 

 

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

1133.890

391.180

321.070

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

496.150

305.410

261.200

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

637.740

85.770

59.870

 

 

 

 

 

Less

TAX                                                                  (H)

188.120

7.100

(9.720)

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

449.620

78.670

69.590

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Capital Goods

4198.720

829.950

479.470

 

TOTAL IMPORTS

4198.720

829.950

479.470

 

 

 

 

 

 

Earnings Per Share (Rs.)

3.38

0.60

0.53

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

6.19

1.74

1.96

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

9.17

1.99

1.82

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

4.90

1.25

0.97

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.08

0.01

0.01

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.73

0.28

0.14

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.19

2.13

2.13

 

 

LOCAL AGENCY FURTHER INFORMATION

 

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

No

8]

No. of employees

No

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

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

No

32]

PAN of Proprietor/Partner/Director, if available

No

33]

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

No

34]

External Agency Rating, if available

Yes

UNSECURED LOAN

(Rs. In Millions)

Particular

As on

31.03.2013

As on

31.03.2012

LONG-TERM BORROWINGS

 

 

Unsecured

7.670

0.000

 

 

 

Total

7.670

0.000

 

 

Long-term maturities of other loans

 

This unsecured loan from Cisco Systems Capital India Private Limited is payable in 44 monthly installments ending in Nov-2017.

 

 

FINANCIAL PERFORMANCE

 

During the year, the total revenue of the Company was Rs. 7268.160 millions on standalone basis and Rs. 9346.440 millions on consolidated basis as compared to last year's revenue of Rs. 4523.380 millions on standalone basis and Rs. 11565.950 millions on consolidated basis. The Profit After Tax of the Company was Rs. 449.620 millions on standalone basis and Rs. 623.010 millions on consolidated basis as compared to last year's Profit After Tax of Rs. 78.670 millions on standalone basis and Rs. 142.800 millions on consolidated basis respectively.

 

 

Operations

 

The Company is the largest cable television distribution company in India in terms of homes served*. It serves an estimated 11 million homes in 200+ cities and towns across 13 states in India including Delhi, Uttar Pradesh, Haryana, Rajasthan, Gujarat, Maharashtra, Karnataka, Kerala, West Bengal, Bihar, Jharkhand, Madhya Pradesh and Uttarakhand.

 

DEN Digital - The Company's cutting edge digital cable TV service offers subscribers a wide choice of channels and state of the art value added services. With approximately 5 million set top boxes installed, DEN Digital is one of India's largest digital television platforms. During the year gone by, the company witnessed robust growth in profitability. The company is continually investing in its digital cable TV operations and rapidly converting its analog susbscriber base into digital in accordance with the lawon Digital Addressable Systems (DAS).

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

Economic Overview

 

Global Economy

 

The year 2012 was characterised by a slowing global economy weighed down by the continued crisis in the Euro Zone and uncertainty in the US fiscal policy. There was a noticeable slowdown in the emerging markets and developing economies that can be attributed to the sharp deceleration in demand from key advanced economies, domestic policy tightening and the end of investment booms in some of the major emerging economies. According to IMF's World Economic Outlook (April 2013 update), the global economy is projected to grow around 3.3 % in 2013 as opposed to a 3.2% growth in 2012. The growth rate for emerging economies is also expected to remain constant from 5.1% in 2012 to around 5.3% in 2013.

 

lndian Economic Overview:

 

The recent slowdown in the lndian economy is partly rooted in external causes, with domestic factors also playing a significant role. Domestically, the monetary and fiscal stimulus provided by the Government of India post financial-crisis led to strong growth in demand and consumption in 2009-10 and 201 0-1 1. However, this resulted in higher inflation and a prevailing monetary response that slowed consumption demand. Moreover, corporate and infrastructure investment were also pulled down by the tightened monetary policy as well as the policy bottlenecks.

 

According to the Central Statistical Organisation (CSO), the estimated growth in real GDP for the year 201 2-1 3 will be 5% as compared to 6.290 posted in 2011-12.

 

With an anticipated mild recovery in the global growth rates, the lndian economy is expected to grow in the range of 6.1 - 6.7% in 2013-14, as estimated by the lndian Economic Survey 2012-13.

 

Overview:

 

Even in the face of bleak global and domestic economic conditions, the lndian M and E lndustry grew rapidly on the back of the ongoing Digitisation of Cable TV, continued growth of regional media, strength in the film sector, upcoming elections and the fast increasing new media businesses.

 

Television continued to be the dominant segment even as other media sectors like animation, films and music posted strong growth. The successful implementation of digital addressable systems (DAS) in Phase 1 and the continued Phase 2 rollout is expected to contribute significantly to strong sustained growth in the TV sector revenues and its ability to invest in and monetize content.

 

Emerging Trends in lndian Media

 

Digitisation of TV distribution:

 

The year 201 2 heralded the much awaited start to the digitisation of analog cable TV households. Phase 1 saw significant progress in implementation of mandatory digital addressable systems (DAS) across the four metros. The same momentum has been visible in Phase 2 which covers the next 38 cities whose population exceeds 1 million with concerted efforts from all stakeholders in the value chain.

 

The benefits of digitisation such as enhanced ability to monetize content, greater transparency and equitable revenue shares across the value chain led to an increased ability to invest in differentiated content.

 

Revenue models still advertising dependent:

 

M and E is still' an advertising dependent industry in India. In the TV sector, digitisation has the potential to increase ARPUs (Average Revenue per User) and improve the share of subscription revenues to the broadcasters.

 

Regional markets remain key centres of growth: Key media players are focusing on selectively expanding their presence in regional markets that are seeing higher rates of advertising revenue growth and better insulation from slowdown than metros. Going beyond regional GECs (general entertainment channels), broadcasters launched several sub-genre channels in regional markets.

 

New Media Businesses:

 

The growth in mobile and wireless connections continued to drive the growth of internet penetration in India. With better access through cheaper and smarter devices, audiences (especially youth) are consuming more content online. Going forward, better uptake of 3G connections, the launch of 4G and the growth of cable broadband are expected to spur this growth further.

 

Growth in the "Niche" segment:

 

The content sector has traditionally been inhibited by challenges of lack of transparency, niche audience measurement and broadcast economics not supportive of investing in targeted content. But, a key outcome of the push in digitisation will be the ability to increase production budgets and invest in differentiated genres and multilingual content.

 

Indian Television Industry

 

Overview: India is the second largest TV market in the world with approximately 162 million TV households, second only to China. In 2012, the television industry commenced its journey down a game changing path, with the seeds planted for sweeping changes that would\ significantly change the industry. Digitisation of cable TV is expected to bring in transparency and increase subscription revenues for stakeholders in the broadcasting value chain.

 

Industry Size and Growth: The television industry in India is estimated at INR 370 billion in 2012 and is expected to grow at a CAGR of 18% over 2012-17, to reach INR 848 billion in 2017. Aided by digitisation and the consequent increase in ARPUs, the share of subscription revenue to the total industry revenue is expected to increase from 66% in 2012 to 72%in 2017. However, it is the transparency brought on by digitisation which is likely to bring revolutionary change in the industry by allowing all stakeholders to receive their legitimate share in subscription revenues.

 

Strong growth in TV sales continues: Approximately 14 million television sets were sold in India in 2012 (a large proportion of these television sales represent replacement of old television sets, institutional TV sales, and a second or third TV set entering a household.). As per the Ministry of Information and Broadcasting (MIB) estimates, institutional and multi TVs account for approximately 17% of television sets in metro cities. The ministry factored in a 20% incidence of multiple TVs in its digitisation estimates.

 

Company Overview

 

DEN Networks Limited is India's leading cable TV distribution company reaching an estimated 11 million households in over 200 cities across India. The company has been one of the frontrunners in the digitization process and has approx. 5 million digital cable subscribers (as on July 2013).

 

DEN is present in 13 key states across India including Delhi, Uttar Pradesh, Karnataka, Maharashtra, Gujarat,

Rajasthan, Haryana, Kerala, West Bengal, Jharkhand, Bihar, Madhya Pradesh and Uttarakhand. The company has a leading presence in the economically important Hindi Speaking Markets (HSM) belt.

 

DEN Digital - DEN's digital cable services brand, is one of the market leaders in India's digital television space. DEN Digital has a wide choice of channels and services spanning all major genres and languages along with cutting edge value added services (VAS) and TV applications. The service also has an easy to use and feature rich 'Electronic Programming Guide' (EPG).

 

DEN's VAS and TV applications portfolio - DEN Excite!- Includes a multi-genre digital music service, City Bytes – a restaurant and events search application, blog. telly - India's first micro blogging service on TV and interactive TV games.

 

DEN Networks has a strategic content distribution JV with Star, Zee and Turner. The company formed a 50-50 JV with Star TV Group called Star DEN in 2008. Star DEN formed a 50-50 J-V with Zee Turner in May 2011 named Media Pro, which combined the Pay TV distribution assets of the Star, Zee and Turner groups in India. Media Pro is the exclusive distribution house of over 70 leading pay TV channels in India.

 

 

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30TH SEPTEMBER, 2013

(Rs. In Millions)

Sr. No.

Particulars

 

Standalone

For Quarter Ended

For Half Year Ended

30.09.2013

(Unaudited)

30.06.2013

(Unaudited)

30.09.2013

(Unaudited)

 

 

 

 

 

 

PART-I STATEMENT OF FINANCIAL RESULTS

 

 

 

1

Total Revenue

1773.700

2412.200

4186.100

 

(a)     Net Income from Operations

1675.700

1617.100

3292.800

 

(b)     Other Operating Income

98.200

795.100

893.300

2

Expenses

7151.600

2557.900

4309.500

 

Content Cost

411.700

436.500

848.200

 

Operational, administrative and other costs

403.700

522.700

926.400

 

Placement Cost

504.800

478.300

983.100

 

Personal Cost

119.200

125.100

244.300

 

Cost of traded items

94.400

793.100

887.500

 

Depreciation & Amortisation Expense

217.800

202.200

420.000

 

Employees stock compensation expenses

0.000

0.000

0.000

3

Profit/(Loss) from Operations before Other Income, finance cost and Exceptional Items (1-2)

22.300

(145.700)

(123.400)

4

Other Income

79.000

98.000

177.000

5

Profit/(loss) before finance cost and Exceptional Items (3+4)

101.300

(47.700)

53.600

6

Interest and other financial charges

214.200

191.800

406.000

7

Profit/(Loss) after finance cost but before Exceptional Items (5-6)

(112.900)

(239.500)

(352.400)

8

Exceptional expense – Provision for impairment of non current investment

--

--

--

9

Profit/(Loss) from Ordinary Activities before Tax (7-8)

(112.900)

(239.500)

(352.400)

10

Provision for Tax

(52.700)

(113.600)

(166.300)

11

Net Profit /(Loss) from Ordinary Activities after Tax (9-10)

(60.200)

(125.900)

(186.100)

12

Share of minority interest

--

--

--

13

Share in (loss)/ profit of associates

--

--

--

14

Net Profit(+)/Loss(-) for the period (11-12+13)

(60.200)

(125.900)

(186.100)

15

Paid Up Equity Share Capital (Face Value of Rs. 2/- each)

1782.000

1464.900

1782.000

16

Reserve excluding Revaluation Reserves as per Balance sheet of previous accounting year

--

--

--

17.i

Earnings Per Share (EPS)

(before extraordinary items) (of Rs. 2/- each) (not annualised)

 

 

 

 

(a)    Basic

(0.42)

(0.89)

(1.29)

 

(b)     Diluted

(0.42)

(0.89)

(1.29)

 

 

 

 

 

 

PART-II SELECT INFORMATION FOR THE QUARTER ENDED 30.09.2013

 

 

A

PARTICULARS OF SHAREHOLDING

 

 

 

1

Public Shareholding

 

 

 

 

No. of Shares

62663681

75130002

106839386

 

Percentage (%) of Shareholding

46.76

51.29

59.95

 

Face value per share (Rs.)                                

Rs.10/-

Rs.10/-

Rs.10/-

2

Promoters and Promoter Group Shareholding

 

 

 

 

a)Pledge/Encumbered

 

 

 

 

No. of Shares

Nil

Nil

Nil

 

Percentage of Shares (as a % of the total Shareholding of promoter and promoter group)

Nil

Nil

Nil

 

Percentage of shares

(as a % of the total Share Capital of the Company)

Nil

Nil

Nil

 

b)Non-encumbered

 

 

 

 

No. of Shares

71360420

71360420

71360420

 

Percentage of Shares (as a % of the total Shareholding of promoter and promoter group)

100.000

100.000

100.000

 

Percentage of shares

(as a % of the total Share Capital of the Company)

40.05

48.71

40.05

 

 

Particulars

Quarter Ended 30.09.2013

 

INVESTOR COMPLAINTS

 

 

Pending at the beginning of the quarter

Nil

 

Received during the quarter

2

 

Disposed of during the quarter

2

 

Remaining unresolved at the end of the quarter

Nil

 

 

SATEMENT OF ASSETS AND LIABILITIES

(Rs. In Millions)

SOURCES OF FUNDS

 

30.09.2013

I.        EQUITY AND LIABILITIES

 

(1)Shareholders' Funds

 

(a) Share Capital

1774.800

(b) Reserves & Surplus

15522.00

 

17296.800

(2) Share Application money pending allotment

--

(3) Minority Interest

--

 

 

(4) Non-Current Liabilities

 

(a) long-term borrowings

4444.7000

(b) Deferred tax liabilities (Net)

0.000

(c) Other long term liabilities

0.300

(d) long-term provisions

58.100

 

4503.100

 

 

(5) Current Liabilities

 

(a) Short term borrowings

495.100

(b) Trade payables

2182.300

(c) Other current liabilities

5015.400

(d) Short-term provisions

1.800

 

7694.600

 

 

TOTAL

29494.500

II.      ASSETS

 

(1) Non-current assets

 

(a) Fixed Assets

 

 

(i) Tangible assets

5656.100

 

(ii) Intangible Assets

69.000

 

(iii) Capital work-in-progress

408.500

 

(iv) Goodwill on consolidation

--

 

(b) Non-current Investments

4576.800

 

(c) Deferred tax assets (net)

152.000

 

(d)  Long-term Loan and Advances

762.500

 

(e) Other Non-current assets

705.900

 

 

12330.800

 

 

(2) Current assets

 

(a) Current investments

3234.300

(c) Trade receivables

2244.100

(d) Cash and cash equivalents

8639.300

(e) Short-term loans and advances

1008.900

(f) Other current assets

2037.100

 

17163.700

 

 

TOTAL

29494.500

 

 

FIXED ASSETS

Tangible Assets

·         Leasehold Improvements

·         Plant and Machinery

·         Set top boxes

·         Computers
Office and other equipment

·         Furniture and Fixtures

·         Vehicles

 

Intangible Assets

·         Goodwill

·         Distribution network rights

·         Software

·         Licence fee for internet service

 

 

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.61.69

UK Pound

1

Rs.101.08

Euro

1

Rs.84.07

 

 

INFORMATION DETAILS

 

Report Prepared by :

VRN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

 

 

 

TOTAL

 

55

 

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

 

--

 

 

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