MIRA INFORM REPORT

 

 

Report Date :

18.12.2013

 

IDENTIFICATION DETAILS

 

Name :

GREY WORLDWIDE (INDIA) PRIVATE LIMITED 

 

 

Registered Office :

Grey House, 28 Dr. E. Borges Road, Opposite Dr. Shirodkar High School, Parel, Mumbai – 400012, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

04.09.1975

 

 

Com. Reg. No.:

11-018529

 

 

Capital Investment / Paid-up Capital :

Rs.38.000 Millions

 

 

CIN No.:

[Company Identification No.]

U74210MH1975PTC018529

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Advertising Agencies.

 

 

No. of Employees :

Information declined by management.

 


 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (47)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

41-55

Ba

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

Satisfactory

 

 

Maximum Credit Limit :

USD 1650000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of WPP Group PLC. It is an established company having a satisfactory track record.

 

The management has failed to file its financial with government department for the year 2013.

 

As per available financial of 2012, profitability of the company seems to be fair. General financial position of the company appears to be sound and healthy.

 

Trade relations are fair. Business is active. Payment terms are usually correct.

 

The company can be considered for business dealings at usual trade terms and condition.

 

 

NOTES:

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

 

 

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.

 

 

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 DECLINED

 

MANAGEMENT NON CO-OPERATIVE

 

Contact No.: 91-22-40366363

 

 

LOCATIONS

 

Registered Office :

Grey House, 28 Dr. E. Borges Road, Opposite Dr. Shirodkar High School, Parel, Mumbai – 400012, Maharashtra, India

Tel. No.:

91-22-40366363

Fax No.:

91-22-40366220

E-Mail :

dilip.kotak@grey.com

sujit.sen@grey.com

Website :

www.grey.com

 

 

DIRECTORS

 

(AS ON 25.06.2013)

 

Name :

Mr. Nirvik Manmohan Singh

Designation :

Chairman cum Managing Director

Address :

Flat No.11, South 11th Floor, Kanchan Gunga Peddar Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

23.08.1963

Date of Appointment :

10.03.2000

DIN No.:

01570572

 

 

Name :

Mr. Wei Ping Loh

Designation :

Director

Address :

19 Simei Street 4, #07-17, Double Bay Residences, Singapore - 529885

Date of Birth/Age :

30.12.1969

Date of Appointment :

10.01.2008

DIN No.:

01838793

 

 

Name :

Mr. Matthew Schetlick

Designation :

Director

Address :

26, Homesdale Road, Bronxville, New York 10708, United States of America

Date of Birth/Age :

20.01.1966

Date of Appointment :

15.01.2005

DIN No.:

01895225

 

 

Name :

Mr. Sujit Sen

Designation :

Additional Director

Address :

A/303, Pluto, Vasant Galaxy, Bangur Nagar, Goregaon West, Mumbai – 400104, Maharashtra, India

Date of Birth/Age :

15.08.1960

Date of Appointment :

25.06.2013

DIN No.:

06382231

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 25.06.2013)

 

Names of Shareholders

 

 

No. of Shares

 

 

 

Grey India Inc., United States of America

 

188260

Advertising Ventures Private Limited, Mauritius

 

191740

 

 

 

Total

 

 

380000

 

 

(AS ON 30.06.2013)

Equity Shares Break – up

 

Category

 

 

Percentage

 

 

 

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

 

100.00

 

 

 

Total

 

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Advertising Agencies.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by management.

 

 

Bankers :

Not Available

 

 

Facilities :

--

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

Tower 3, 27th - 32nd Floor Senapati Bapat Marg Elphinstone Road (West) Mumbai – 400013, Maharashtra, India

PAN No.:

AACFD4815A

 

 

Holding Company :

·         Advertising Ventures Private Limited

 

 

Ultimate Holding Company :

·         WPP Group Plc.

 

 

Enterprise Controlling the Company :

·         Grey Global Group Inc.

·         Grey Advertising Inc.

 

 

Subsidiary Companies – Enterprises under the control of the company :

·         Trikaya Communications Private Limited

·         Batey India Private Limited

·         Options Communications Private Limited

·         Grey First Serve Advertising Private Limited

 

 

Fellow Subsidiaries – Companies under common Control :

·         Grey Advertising Limited

·         Grey Worldwide Sdn, Bhd.

·         Grey group PTE Limited

·         Grey Advertising (Hongkong) Limited

·         Landor Associates USA

·         Landor Associates Europe Limited

·         Landor Associates Designers and Consultants PTE Limited, Singapore

·         Campaign and Grey

·         Grey Worldwide, Korea

·         Grey Newyork

·         Grey Worldwide, London

·         Grey Australia

·         Grey Global Group, Vietnam

·         Grey Indonesia

·         Grey Japan

·         Grey Maxxico

·         Grey Two Sdn. Bhd.

·         Grey Worldwide Middle East Network

·         G2 Inc., Newyork

·         G2, London

·         Grey Worldwide GMBH, Germany

·         Hindustan Thompson Associates Limited

·         G2 Rams India Private Limited

·         Group M Media India Private Limited

·         WPP 2005 Limited

·         Oglivy and Mather Private Limited

 

 

CAPITAL STRUCTURE

 

(AS ON 25.06.2013)

 

Authorised Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

447500

Equity Shares

Rs.100/- each

Rs.44.750 Millions

3000

4% Non-Cumulative/ Non-Participating Redeemable Preference Shares

Rs.1/- each

Rs.0.003 Million

2470

Non-Cumulative Redeemable Preference Shares

Rs.100/- each

Rs.0.247 Millions

 

 

 

 

 

Total

 

 

Rs.45.000 Millions

 

Issued, Subscribed & Paid-up Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

380000

Equity Shares

Rs.100/- each

Rs.38.000 Millions

 

 

 

 

 

 


 

FINANCIAL DATA

[All figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.12.2012

31.12.2011

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

38.000

38.000

(b) Reserves & Surplus

 

374.751

356.293

(c) Money received against share warrants

 

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

 

0.000

0.000

Total Shareholders’ Funds (1)+(2)

 

412.751

394.293

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

0.000

0.000

(b) Deferred tax liabilities (Net)

 

0.000

0.000

(c) Other long term liabilities

 

0.000

0.000

(d) long-term provisions

 

19.697

18.652

Total Non-current Liabilities (3)

 

19.697

18.652

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

65.000

75.000

(b) Trade payables

 

163.099

170.452

(c) Other current liabilities

 

19.360

18.568

(d) Short-term provisions

 

2.444

1.940

Total Current Liabilities (4)

 

249.903

265.989

 

 

 

 

TOTAL

 

682.351

678.934

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

25.946

33.123

(ii) Intangible Assets

 

0.000

0.000

(iii) Capital work-in-progress

 

0.000

0.000

(iv) Intangible assets under development

 

0.000

0.000

(b) Non-current Investments

 

2.341

2.341

(c) Deferred tax assets (net)

 

15.854

14.531

(d)  Long-term Loan and Advances

 

88.688

56.691

(e) Other Non-current assets

 

0.000

0.000

Total Non-Current Assets

 

132.829

106.686

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

0.000

0.000

(b) Inventories

 

457.034

437.248

(c) Trade receivables

 

27.744

17.052

(d) Cash and cash equivalents

 

17.031

43.749

(e) Short-term loans and advances

 

47.713

74.199

(f) Other current assets

 

0.000

0.000

Total Current Assets

 

549.522

572.248

 

 

 

 

TOTAL

 

682.351

678.934

 

 

 

SOURCES OF FUNDS

 

 

 

31.12.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

 

38.000

2] Share Application Money

 

 

0.000

3] Reserves & Surplus

 

 

314.384

4] (Accumulated Losses)

 

 

0.000

NETWORTH

 

 

352.384

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

0.000

2] Unsecured Loans

 

 

0.000

TOTAL BORROWING

 

 

0.000

DEFERRED TAX LIABILITIES

 

 

0.000

 

 

 

 

TOTAL

 

 

352.384

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

25.525

Capital work-in-progress

 

 

2.101

 

 

 

 

INVESTMENT

 

 

2.341

DEFERREX TAX ASSETS

 

 

16.821

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

 

 

0.000

 

Sundry Debtors

 

 

415.583

 

Cash & Bank Balances

 

 

14.641

 

Other Current Assets

 

 

0.000

 

Loans & Advances

 

 

291.161

Total Current Assets

 

 

721.385

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditor

 

 

326.674

 

Other Current Liabilities

 

 

51.118

 

Provisions

 

 

37.997

Total Current Liabilities

 

 

415.789

Net Current Assets

 

 

305.596

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

0.000

 

 

 

 

TOTAL

 

 

352.384

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.12.2012

31.12.2011

31.12.2012

 

SALES

 

 

 

 

 

TOTAL                                    

549.060

550.252

468.888

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                    

508.534

472.680

387.719

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

40.526

77.572

81.169

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

14.839

12.272

11.021

 

 

 

 

 

 

PROFIT BEFORE TAX

25.687

65.300

70.148

 

 

 

 

 

Less

TAX                                                     

7.229

23.391

26.367

 

 

 

 

 

 

PROFIT AFTER TAX

18.458

41.909

43.781

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

351.442

309.533

265.752

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

369.900

351.442

309.533

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Commission Earnings

103.336

135.393

NA

 

 

Dividend

4.168

0.000

NA

 

 

Other Earnings

11.289

20.813

NA

 

TOTAL EARNINGS

118.793

156.206

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

48.57

110.29

--

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

3.36

11.87

14.96

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

3.87

9.86

9.39

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.06

0.17

0.20

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.16

0.19

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.20

2.15

1.73

 

 

LOCAL AGENCY FURTHER INFORMATION

 

CURRENT MATURITY OF LONG TERM BORROWINGS DETAIL: NOT AVAILABLE

 

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

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

-----

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

-----

22]

Litigations that the firm / promoter involved in

-----

23]

Banking Details

No

24]

Banking facility details

No

25]

Conduct of the banking account

-----

26]

Buyer visit details

-----

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes 

29]

Last accounts filed at ROC

Yes 

30]

Major Shareholders, if available

Yes 

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

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

No

 

 

UNSECURED LOANS

 

Particulars

31.12.2012

31.12.2011

 

 

(Rs. In Millions)

Short Term borrowings

 

 

Loans From a Banks

65.000

75.000

 

 

 

Total

 

65.000

75.000

 

 

FINANCIAL RESULTS

 

Year 2012 was a tough year in terms of revenue growth, Revenue for 2012 was flat as the major clients Bharti AXA, Indian Oil Corporation, Parle Products reduced their 2012 marketing spends. However they continued to expand their client roster with high profile new business wins including Dell, DHL, Procter and Gamble (Brand: Duracell and Downy) Digital Business grew in revenue and they were awarded significant new assignments from their time clients.

 

 

CONTINGENT LIABILITIES

 

Particulars

31.12.2012

31.12.2011

 

 

(Rs. In Millions)

Service Tax

23.778

23.778

 

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY 

 

 

FIXED ASSETS:

 

·         Furniture and Fixtures

·         Building

·         Office Equipment

·         Computer

·         Vehicles

 


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 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.62.13

UK Pound

1

Rs.101.53

Euro

1

Rs.85.41

 

 

INFORMATION DETAILS

 

Information Gathered by :

HTL

 

 

Report Prepared by :

NIT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--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

 

47

 

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.