MIRA INFORM REPORT
|
Report Date : |
26.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
EDELMAN INDIA PRIVATE LIMITED (w.e.f. 11.01.2011) |
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Formerly Known
As : |
RANDP MANAGEMENT COMMUNICATIONS PRIVATE LIMITED B-MRP COMMUNICATIONS PRIVATE LIMITED (w.e.f. 21.08.2001) BURSON-MARSTELLER ROGER PEREIRA COMMUNICATIONS PRIVATE LIMITED |
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Registered
Office : |
903, One India Bulls Centre, Tower 2, South Wing, 841, Jupiter Mills,
Off Senapati Bapat Marg, Lower Parel, Mumbai-400013, Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
11.03.1993 |
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Com. Reg. No.: |
11-71100 |
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Capital
Investment / Paid-up Capital : |
Rs. 1.125 millions |
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CIN No.: [Company Identification
No.] |
U74140MH1993PTC071100 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Corporate Developmental, Financial and Marketing Communication
Company. |
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No. of Employees
: |
250 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (49) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 440000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having a satisfactory track
record. Financial position of the company appears to be good. Trade relations
are reported as fair. Business is active. Payments are reported to be usually
correct and as per commitments. The company can be considered normal 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.
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including industrial
deregulation, privatization of state-owned enterprises, and reduced controls on
foreign trade and investment, began in the early 1990s and has served to
accelerate the country's growth, which has averaged more than 7% per year since
1997. India's diverse economy encompasses traditional village farming, modern
agriculture, handicrafts, a wide range of modern industries, and a multitude of
services. Slightly more than half of the work force is in agriculture, but
services are the major source of economic growth, accounting for more than half
of India's output, with only one-third of its labor force. India has
capitalized on its large educated English-speaking population to become a major
exporter of information technology services and software workers. In 2010, the
Indian economy rebounded robustly from the global financial crisis - in large
part because of strong domestic demand - and growth exceeded 8% year-on-year in
real terms. However, India's economic growth in 2011 slowed because of persistently
high inflation and interest rates and little progress on economic reforms. High
international crude prices have exacerbated the government's fuel subsidy
expenditures contributing to a higher fiscal deficit, and a worsening current
account deficit. Little economic reform took place in 2011 largely due to
corruption scandals that have slowed legislative work. India's medium-term
growth outlook is positive due to a young population and corresponding low
dependency ratio, healthy savings and investment rates, and increasing
integration into the global economy. India has many long-term challenges that
it has not yet fully addressed, including widespread poverty, inadequate
physical and social infrastructure, limited non-agricultural employment
opportunities, scarce access to quality basic and higher education, and
accommodating rural-to-urban migration.
|
Source
: CIA |
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 PARTED BY (PARTIAL DETAILS)
|
Name : |
Mr. Paul |
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Designation : |
Accounts Department |
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Contact No.: |
91-22-43530210 |
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Date : |
25.03.2013 |
LOCATIONS
|
Registered Office : |
903, One India Bulls Centre, Tower 2, South Wing, 841, Jupiter Mills, Off
Senapati Bapat Marg, Lower Parel, Mumbai-400013, Maharashtra, India |
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Tel. No.: |
91-22-43530210 |
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Fax No.: |
91-22-43530264 / 0257 |
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E-Mail : |
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Website : |
DIRECTORS
As on 18.09.2012
|
Name : |
Mr. Richard Winston Edelman |
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Designation : |
Director |
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Address : |
277, West End Ave, Apartment 4B, New York-10023, United States of
America |
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Date of Birth/Age : |
15.06.1954 |
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Date of Appointment : |
17.02.2005 |
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DIN No.: |
00793472 |
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Name : |
Mr. Naveen Agarwal |
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Designation : |
Whole-time director |
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Address : |
Gh6 7b, Orchid Gardens, Suncity, Sector-54, Gurgaon-122001, Haryana, India |
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Date of Birth/Age : |
16.08.1968 |
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Date of Appointment : |
15.03.2011 |
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DIN No.: |
01938346 |
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Name : |
Mr. Robert Harold Holdheim |
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Designation : |
Managing Director |
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Address : |
36 Longview Lane, Chappaqua, New York, 10514, United States of America |
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Date of Birth/Age : |
26.09.1963 |
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Date of Appointment : |
01.07.2009 |
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DIN No.: |
02639719 |
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Name : |
Victor Allan Malanga |
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Designation : |
Managing director |
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Address : |
44, Colonial Terrace Nutley NJ 07710 U.S.A |
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Date of Birth/Age : |
08.03.1967 |
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Date of Appointment : |
29.04.2009 |
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DIN No.: |
02639719 |
KEY EXECUTIVES
|
Name : |
Mr. Paul |
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Designation : |
Accounts Department |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 18.09.2012
|
Names of Shareholders |
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No. of Shares |
|
Edelman (Mauritius) Limited, Mauritius |
|
112499 |
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Daniel J Edelman Inc., U.S.A |
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1 |
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Total |
|
112500 |
Equity Share Break up (Percentage of Total Equity)
As on 18.09.2012
|
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 |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Corporate Developmental, Financial and Marketing Communication
Company. |
GENERAL INFORMATION
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Customers : |
Corporate |
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No. of Employees : |
250 (Approximately) |
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Bankers : |
Not Available |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Chandabhoy and Jassoobhoy Chartered Accountants |
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Address : |
208, Phoenix House, 'A' Wing, 2nd Floor, 462, Senapati
Bapat Marg, Lower Parel, Mumbai- 400 013, Maharashtra, India |
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Tel. No.: |
91-22-24981516/24961356 |
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Fax No.: |
91-22-24981718 |
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E-Mail : |
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Holding Company; |
Edelman ( |
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Ultimate Holding Company : |
Daniel J Edelman Inc., USA |
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Fellow Subsidiary : |
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CAPITAL STRUCTURE
After 18.09.2012
Authorised Capital : Rs. 10.200
Millions
Issued, Subscribed & Paid-up Capital : Rs. 1.257 Millions
As on 18.09.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
1020000 |
Equity Shares |
Rs.10/- Each |
Rs.10.200 millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
112500 |
Equity Shares |
Rs.10/- Each |
Rs.1.125
millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
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|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1.125 |
1.125 |
1.125 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
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|
3] Reserves & Surplus |
109.508 |
65.415 |
74.822 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
110.633 |
66.540 |
75.947 |
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LOAN FUNDS |
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|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
|
|
|
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TOTAL |
110.633 |
66.540 |
75.947 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
67.491 |
38.318 |
12.738 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERRED TAX ASSETS |
3.446 |
1.441 |
1.231 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
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Inventories |
0.000
|
0.000 |
0.000 |
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|
Sundry Debtors |
111.518
|
63.980 |
43.913 |
|
|
Cash & Bank Balances |
0.779
|
3.081 |
3.874 |
|
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Other Current Assets |
1.935
|
0.000 |
0.000 |
|
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Loans & Advances |
70.268
|
50.151 |
46.947 |
|
Total
Current Assets |
184.500
|
117.212 |
94.734 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
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|
Sundry Creditors |
109.049
|
64.770 |
20.271 |
|
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Other Current Liabilities |
35.755
|
24.608 |
12.485 |
|
|
Provisions |
0.000
|
1.053 |
0.000 |
|
Total
Current Liabilities |
144.804
|
90.431 |
32.756 |
|
|
Net Current Assets |
39.696
|
26.781 |
61.978 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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|
|
|
|
|
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TOTAL |
110.633 |
66.540 |
75.947 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
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|
|
|
|
|
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Income |
NA |
192.639 |
148.084 |
|
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Other Income |
|
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|
|
|
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TOTAL |
NA |
192.639 |
148.084 |
|
|
|
|
|
|
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|
Less |
|
|
|
|
|
|
|
|
Office Expenses |
NA |
194.955 |
138.496 |
|
|
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Administrative Expenses |
|
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|
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|
Advertising Expenses |
|
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|
|
|
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TOTAL |
NA |
194.955 |
138.496 |
|
|
|
|
|
|
|
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|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
74.530 |
(2.316) |
9.588 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
9.468 |
7.315 |
5.290 |
|
|
|
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|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
65.062 |
(9.631) |
4.298 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
20.995 |
(0.209) |
1.459 |
|
|
|
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|
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PROFIT/
(LOSS) AFTER TAX |
44.067 |
(9.422) |
2.839 |
|
|
|
|
|
|
|
|
|
Less/ Add |
Provision for tax
of earlier year written back |
0.026 |
0.015 |
(0.581) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
64.040 |
73.447 |
71.189 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
108.133 |
64.040 |
73.447 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
NA |
57.724 |
51.345 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
391.71 |
(83.62) |
20.07 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
NA
|
(4.89) |
1.92 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
25.82
|
(6.19) |
4.00 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.59
|
(0.14) |
0.06 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00
|
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.27
|
1.30 |
2.89 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS:
|
Particulars |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
(Rs. In Millions) |
||
|
|
|
|
|
|
Sundry Creditor |
109.049
|
64.770 |
20.271 |
|
|
|
|
|
|
Total |
109.049
|
64.770 |
20.271 |
|
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 |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
two 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 |
OPERATIONS
The year has been a watershed year in the history of Edelman in India. In November 2011 we won the mandate from one of India's conglomerate to handle the PR for its key 28 companies. This mandate coupled with other new business helped them in nearly doubling their revenue over the previous year. This puts them in the ranks of the top 5 PR firms in India.
The company hired over 120 new staff last year. This has taken our total staff strength to over 250 all over India. The company has opened offices in 7 new cities in India thereby expanding our geographical footprint in the country. The company has moved into a larger office in Bangalore and also taken additional space in the same buildings in Mumbai and Gurgaon.
The investments continue to be made in training by having the members of the senior staff attending the regional Leadership training programs other local training programs for other staff.
The credit of maintaining the revenues goes to the entire dedicated servicing India team right from the Practice Directors - Account Managers to the back office and administrative support teams.
Profits were strong due to increased revenues during the year.
There was an increase operating and other expense due increase in rental costs due to the new office moves, travelling costs and training costs.
The outlook on the current year is very positive and they are looking to reap the benefits of the efforts made last year.
FIXED ASSETS
- Leasehold
Improvement
- Furniture and
Fixtures
- Office
Equipment
- Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No 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.54.10 |
|
|
1 |
Rs.82.47 |
|
Euro |
1 |
Rs.70.49 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
49 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NB |
NEW BUSINESS |
||
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.