MIRA INFORM REPORT
|
Report Date : |
20.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
BHARAT BUSINESS CHANNEL LIMITED |
|
|
|
|
Registered
Office : |
Auto Cars Compound, Adalat Road, Aurangabad-431005, Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
22.11.2002 |
|
|
|
|
Com. Reg. No.: |
11-137947 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.1820.000
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U92100MH2002PLC137947 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMB18717G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AACCB1409R |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Providing Direct to Home (DTH) Broad Casting Services. |
|
|
|
|
No. of Employees : |
Information denied by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (18) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part of Videocon Group. It is an established company having a moderate track record. There
appear huge accumulated losses recorded by the company. The external
borrowing appears to be huge which get as a threat to the liquidity of the
company. However, trade relations are reported to be fair. Business is active.
Payments are reported to be slow. The company can be considered for business dealings on a safe and
secured 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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
BBB – [Long Term Bank Facilities] |
|
Rating Explanation |
Having moderate degree of safety regarding timely servicing of financial
obligation. It carry moderate credit risk. |
|
Date |
November 2011 |
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 BY
Management non co-operative. [91-80-42884388]
LOCATIONS
|
Registered Office : |
Auto Cars Compound, Adalat Road, Aurangabad-431005, Maharashtra,
India |
|
Tel. No.: |
91-240-2320750 |
|
Fax No.: |
91-240-2335755 |
|
E-Mail : |
|
|
|
|
|
Head Office : |
171-C, 17th Floor, Mittal Court, C Wing, Nariman Point,
Mumbai – 400 021, |
|
Tel. No.: |
91-22-61534567 |
|
|
|
|
Corporate Office : |
1st Floor, Techweb Centre, New Link Road, Near Mega Mall, Oshiwara,
Mumbai-400102, Maharashtra, India |
|
Email: |
|
|
|
|
|
Branch Office : |
No. 32/, Behind Post Office, 1st |
|
Tel. No.: |
91-80-42884388 / 43322001 / 43322000 |
DIRECTORS
AS ON 29.09.2012
|
Name : |
Mr. Suresh Madhava Hegde |
|
Designation : |
Director |
|
Address : |
51, Plot No. C -1, C-2, Dream Queen S.V.P. Road, Santacruz (West), Mumbai-400054,
Maharashtra, India |
|
Date of Birth/Age : |
19.03.1958 |
|
Date of Appointment : |
27.11.2002 |
|
Din No.: |
01321882 |
|
|
|
|
Name : |
Mr. Vivek Dattatray Dharm |
|
Designation : |
Director |
|
Address : |
D – 31, Shree Ramkrishna Colony, Behind Markendaya Society, Savedi,
Ahmednagar-414001, Maharashtra, India. |
|
Date of Birth/Age : |
22.11.1964 |
|
Date of Appointment : |
01.10.2005 |
|
Din No.: |
00214361 |
|
|
|
|
Name : |
Mr. Saurabh Pradipkumar Dhoot |
|
Designation : |
Director |
|
Address : |
Dhoot Bunglow, Station Road, Aurangabad-431001, Maharashtra, India. |
|
Date of Birth/Age : |
11.08.1984 |
|
Date of Appointment : |
31.01.2007 |
|
Din No.: |
00970362 |
|
|
|
|
Name : |
Mr. Rajkumar Nandal Dhoot |
|
Designation : |
Director |
|
Address : |
Dhoot Bunglow, Station Road, Padampura, Aurangabad-431005,
Maharashtra, India. |
|
Date of Birth/Age : |
05.11.1955 |
|
Date of Appointment : |
09.04.2007 |
|
Din No.: |
00419480 |
KEY EXECUTIVES
|
Name : |
Ms. Amruta Shridhar Karkare |
|
Designation : |
Secretary |
|
Address : |
18, Kshipra Sahawas, Society, Karvenagar, Pune-411052, Maharashtra,
India |
|
Date of Birth/Age : |
20.05.1987 |
|
Date of Appointment : |
01.09.2012 |
|
Pan No.: |
BCHPK8780P |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 29.09.2012
|
Names of Shareholders |
|
No. of Shares |
|
Venugopal Nandlal Dhoot |
|
10000 |
|
Anirudh Venugopal Dhoot |
|
40000 |
|
Shree Dhoot Trading and Agencies Limited, |
|
45980000 |
|
Solitaire Appliances Private Limited, |
|
45980000 |
|
Greenfield Appliances Private Limited, |
|
45980000 |
|
Synergy Appliances Private Limited, |
|
45980000 |
|
Dome – Bell Electronics India Private Limited, |
|
45980000 |
|
Platinum Appliances Private Limited, India |
|
12050000 |
|
|
|
|
|
TOTAL
|
|
242000000 |
AS ON 29.09.2012
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Bodies
corporate |
|
99.98 |
|
Directors
or relatives of directors |
|
0.02 |
|
TOTAL |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Direct to Home (DTH) Broad Casting Services. |
GENERAL INFORMATION
|
No. of Employees : |
Information denied by the management. |
|||||||||
|
|
|
|||||||||
|
Bankers : |
·
ICICI Bank Limited, Landmark Race Cource
Circle, Alkapuri, Baroda - 390015, Gujarat, India ·
Union Bank of India, Industrial Finance
Branch, Union Bank Bhavan, 239, Vidhan Bhavan Marg, Mumbai-400021,
Maharashtra, India ·
IDBI Bank Limited, IDBI Tower, WTC Complex,
Cuffe Parade, Mumbai-400005, Maharashtra, India ·
Central Bank of India, Nariman Point Branch,
Chander Mukhi, Ground Floor, Mumbai-400021, Maharashtra, India |
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Facilities : |
|
|
|
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Banking
Relations : |
-- |
|
|
|
|
Auditors 1 : |
|
|
Name : |
Kadam and Company Chartered Accountants |
|
Address : |
Vedant, 8/9, Viraj Estate, Opposite Tarakpur Bus Stand, Ahmednagar-414003,
Maharashtra, India |
|
PAN No: |
AAIFK3708R |
|
|
|
|
Auditors 2 : |
|
|
Name : |
Khandelwal Jain and Company Chartered Accountants |
|
Address : |
12-B, Baldota Bhavan, 117, Maharshi Karve Road, Opposite Churchgate Railway
Staion, Mumbai-400020, Maharashtra, India |
|
PAN No: |
AAAFK0985C |
CAPITAL STRUCTURE
AS ON 29.09.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
500000000 |
Equity Shares |
Rs.10/- each |
Rs.5000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
242000000 |
Equity Shares |
Rs.10/- each
|
Rs.2420.000
Millions |
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
185000000 |
Equity Shares |
Rs.10/- each |
Rs.1850.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
182000000 |
Equity Shares |
Rs.10/- each
|
Rs.1820.000
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1820.000 |
1820.000 |
1820.000 |
|
|
2] Share Application Money |
3000.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.000 |
0.000 |
3440.000 |
|
|
4] (Accumulated Losses) |
(8017.507) |
(3215.864) |
(1325.692) |
|
|
NETWORTH |
(3197.507) |
(1395.864) |
3934.308 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
13917.800 |
9716.600 |
6950.000 |
|
|
2] Unsecured Loans |
250.000 |
3237.418 |
377.616 |
|
|
TOTAL BORROWING |
14167.800 |
12954.018 |
7327.616 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
10970.293 |
11558.154 |
11261.924 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
15539.300 |
10760.202 |
4896.249 |
|
|
Capital work-in-progress |
2239.087 |
1983.176 |
6940.884 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
188.869
|
216.470 |
149.581
|
|
|
Sundry Debtors |
13.154
|
21.440 |
0.913
|
|
|
Cash & Bank Balances |
404.059
|
346.478 |
104.451
|
|
|
Other Current Assets |
0.200
|
0.000 |
0.741
|
|
|
Loans & Advances |
2216.013
|
3557.067 |
555.862
|
|
Total
Current Assets |
2822.295
|
4141.455 |
811.548 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2172.168
|
1373.245 |
766.902
|
|
|
Other Current Liabilities |
7426.300
|
3933.504 |
606.371
|
|
|
Provisions |
31.921
|
19.930 |
13.484
|
|
Total
Current Liabilities |
9630.389
|
5326.679 |
1386.757
|
|
|
Net Current Assets |
(6808.094)
|
(1185.224) |
(575.209)
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
10970.293 |
11558.154 |
11261.924 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6975.154 |
1852.780 |
122.238 |
|
|
|
Other Income |
30.307 |
18.531 |
5.399 |
|
|
|
TOTAL (A) |
7005.461 |
1871.311 |
127.637 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases of stock-in-trade |
64.261 |
134.460 |
|
|
|
|
Employee benefit expense |
647.827 |
485.892 |
|
|
|
|
Other expenses |
7059.399 |
4661.537 |
1106.386 |
|
|
|
Exceptional items |
0.000 |
25.114 |
|
|
|
|
Changes in inventories
of finished goods, work-in-progress and stock-in-trade |
26.893 |
(99.492) |
|
|
|
|
TOTAL (B) |
7798.380 |
5207.511 |
1106.386 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(792.919) |
(3336.200) |
(978.749) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2012.946 |
1078.782 |
150.913 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(2805.865) |
(4414.982) |
(1129.662) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1995.750 |
913.720 |
157.794 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(4801.615) |
(5328.702) |
(1287.456) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.029 |
1.469 |
6.237 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(4801.644) |
(5330.171) |
(1293.693) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
(1325.692) |
(31.999) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
NA |
(6655.863) |
(1325.692) |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials / Components |
NA |
72.839 |
7.467 |
|
|
|
Capital Goods |
NA |
1123.894 |
304.053 |
|
|
TOTAL IMPORTS |
NA |
1196.733 |
311.520 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(26.38) |
(29.29) |
(53.17) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(68.54)
|
(284.84) |
(1013.57)
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(68.84)
|
(287.60) |
(1053.24) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(26.15)
|
(35.75) |
(22.56)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
1.50
|
3.82 |
(0.33)
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
(4.43)
|
(9.28) |
1.86
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.29
|
0.77 |
0.58
|
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY CREDITORS:
|
Particulars |
31.03.2012 [Rs. in millions] |
31.03.2011 [Rs. in millions] |
31.03.2010 [Rs. in millions] |
|
Sundry Creditors |
2172.168
|
1373.245 |
766.902
|
|
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 |
No |
|
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] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth of Proprietor/Partner/Director, if available |
Yes |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
|
Unsecured Loan |
As
on 31.03.2012 [Rs.
in Millions] |
As
on 31.03.2011 [Rs.
in Millions] |
|
Loans Repayable on Demand |
250.000 |
3231.673 |
|
Long-Term Maturities of Finance Lease Obligation |
0.000 |
5.745 |
|
TOTAL
|
250.000 |
3237.418 |
COMPANY OVERVIEW:
Subject is in to
the business of providing Direct to Home (DTH) Broad Casting services to its
sub-scribers. The Company has entered in to License Agreement with the Ministry
of Information and Broad Ca sting to provide DTH Services on 28th
December, 2007 with a validity period of Ten years. The validity period of
License shall be reckoned from the date of issue of operating license by the
Wireless Planning and Co-ordination (WPC). The Company has received the
operating license from WPC on 1 2th December, 20 08.
BUSINESS
OPERATIONS AND OVERVIEW:
The Company is the
fastest growing DTH service provider in India. The Company distributes multiple
television channels and allied video and audio services to subscribers as part
of its DTH services. The Company is providing digital quality television
viewing to its subscribers and is carrying over 400 national and international
channels and services, including 22 HD channels and 41 audio and video Active
Music Channel Services. As of March 31, 2012, the company had 5.480 millions
gross subscribers, representing approximately 11.80% of the total DTH
subscriber base in India. The Company is optimistic that the HD penetration
will increase in the near future. Broadcasters and DTH players have expanded
their HD offerings in 2012. With increasing sales of affordable HD televisions,
consumers may be prepared to pay a premium for better viewing experiences on
these television sets. Presently, the Company is providing 22 HD Channels under
the brand name of 'Videocon d2h'. Currently, The Ministry of Information and
Broadcasting has notified a four-phase digitization process for cable
television in India with a sunset date of December 31, 2014. As a result, the
cable television industry in India will be transitioned to the Digital
Addressable System (DAS) for television distribution and all cable operators
will be legally bound to transmit only digital signals. The Board of Directors
believes that this is the key growth opportunity, which will lead to increase in
the subscriber base of the Company in near future. The registered office of the
Company was changed from 171-C, Mittal Court, C Wing, Nariman Point,
Mumbai-400021 to Auto Cars Compound, Adalat Road, Aurangabad – 431 005, w. e. f
1stAugust, 2012. Further, the Authorised Share Capital of the Company was
increased from Rs. 1850.000 Millions to Rs. 5000.000 Millions on 6thSeptember,
2012.
BANKERS CHARGES
REPORT AS PER REGISTRY
|
This form is for |
Creation of
charge |
|
Corporate identity
number of the company |
U92100MH2002PLC137947 |
|
Name of the
company |
BHARAT BUSINESS
CHANNEL LIMITED |
|
Address of the
registered office or of the principal place of business in |
Auto Cars Compound, Adalat Road, Aurangabad-431005, Maharashtra |
|
Type of charge |
Movable
Property [not being pledge] Others |
|
Particular of
charge holder |
Union Bank of India, Industrial Finance Branch, Union Bank
Bhavan, 239, Vidhan Bhavan Marg, Mumbai-400021, Maharashtra, India |
|
Nature of
description of the instrument creating or modifying the charge |
Deed of Hypothecation
dated 5th April, 2013 entered between Bharat Business Channel Limited (the
"Company") and Union Bank of India (the "Bank"). |
|
Date of
instrument Creating the charge |
05.04.2013 |
|
Amount secured by
the charge |
Rs.1500.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest Interest on the
principal amount at IDBI Bank's base rate plus 275 bps (spread), fully
floating i.e. the interest rate would automatically change with every change
in IDBI BBR Terms of Repayment The Company shall
repay the principal amount of the RTL in 24 unequal quarterly installments
commencing after 2 1/4 years from the date of first disbursement (tentatively
April 1, 2015) more particularly described in the Letter of Sanction dated
April 3, 2013. Extent and Operation of the charge The charge
extends to all the movable/immovable asset of the Company, both present and
future on pari passu charge basis, DSRA for 1 quarter's debt service payment,
assignment of DTH Licence on pari passu basis and corporate guarantee on
Solitaire Appliances Private Limited, Platinum Appliances Private Limited,
Greenfield Appliances Private Limited and personal guarantee of Mr. V. N.
Dhoot and Mr. P. N. Dhoot. |
|
Short particulars
of the property charged |
The whole of the
movable properties of the Company including its movable plant and machinery,
machinery spares, tools and accessories and movables, both present and future
whether installed or not and whether now lying loose or in cases or which are
now lying or stored in or about or shall hereafter from time to time during
the continuance of the security of these presents be brought into or upon or
be stored or be in or about all the Company's offices, premises, factories
and godowns or wherever else the same may be or be held by any party to the
order or disposition of the Company or in the course of transit or on high
seas or on order, or delivery, howsoever and wheresoever in the possession of
the Company and either by way of substitution or addition together with all
the receivables of the Company. DSRA for 1
quarter's debt service payment (Interest) to be created latest by January 1,
2015 Assignment of DTH
License, on pari passu basis with existing term lenders Irrevocable and
unconditional corporate guarantee of Solitaire Appliances Private Limited,
Platinum Appliances Private Limited and Greenfield Appliances Private Limited Irrevocable and
unconditional joint and several personal guarantee of Mr. V. N. Dhoot and Mr.
P. N. Dhoot. |
FIXED ASSETS:
·
Land
·
Building
·
Plant and Machinery
·
Consumer Premises Equipments [CPE]
·
Electrical Installation
·
Furniture and Fixtures
·
Computers
·
Computer Software
·
Office Equipment
·
Vehicles
NEWS:
JANUARY 24, 2013
INDIA’S TATA SKY PLANS $466
MILLION IPO
By Kenan Machado and R. Jai Krishna
MUMBAI–Indian direct-to-home television-service provider Tata Sky Limited is likely to apply soon for an initial public offering to raise 25 billion rupees ($466.2 million), according to a person involved in the process.
The company recently selected investment banks Kotak Mahindra Capital Co.,500247.BY +0.64% Morgan Stanley MS -1.35% and Citigroup Inc. C +0.57% to manage the offering, this person said.
Tata Sky–a 70:30 joint venture between India’s Tata group and Star Group–declined to comment. Star is a television unit of News Corp NWSA +0.88%., which owns Dow Jones and Co., publisher of The Wall Street Journal.
The company is likely to file a draft prospectus with capital-market regulator Securities and Exchange Board of India as early as February, the person said. It plans to use the proceeds to pay off its debt and to fund expansion within India, the person added.
Tata Sky competes with state-run DD Direct, Bharti Airtel Limited, 532454.BY -1.82%Reliance Communications Limited, 532712.BY -3.86% Dish TV India Limited,532839.BY -1.01% Sun Direct TV Limited and Videocon Group 511389.BY -1.50% in India’s direct-to-home TV-service market.
Last month Videocon Group's 511389.BY +0.19%Bharat Business Channel Limited, which provides services under the brand name Videocon D2H, filed a draft prospectus for an IPO to raise up to 7.0 billion rupees ($130 million). Of this, it would consider raising up to 500 million rupees by selling shares to certain investors before the issue opens for public subscription, according to the draft prospectus.
Bharat Business Channel’s company secretary, Amruta Karkare, didn’t immediately comment on its IPO plan Thursday.
Subject to regulatory approvals, Bharat Business Channel expects to list in March, one person involved in the process said recently.
India’s TV market was estimated to be $6 billion in 2011, according to a report last year by KPMG and the Federation of Indian Chambers of Commerce and Industry.
But India’s nascent direct-to-home TV-distribution companies get a relatively small piece of this pie, say analysts. Most of these companies have been bleeding because of heavy debt and lower-than-expected sales amid high competition.
Bharat Business Channel, which commenced commercial operations in July 2009, said in its prospectus that it had incurred losses every year between 2009 and September 2012, adding up to around $260 million in losses. This was despite massive growth in its subscriber base and revenue, according to the filing. The company had around $350 million in debt as of Oct. 31.
But the prospects look better, thanks partly to India’s push for greater digitization.
The federal government has set a deadline of December 2013 for all cable-TV networks to convert their transmission signals to the digital format from analog. This may lead more people to sign up for direct-to-home TV services as they are already digital.
Bharat Business Channel, like Tata Sky, plans to use its IPO proceeds to expand the company’s business as well as to retire some debt.
The Bharat Business Channel IPO is being managed by five banks, including Axis Bank Limited’s 532215.BY +0.07% Enam Securities Private Limited, UBS Securities India Private Limited and IDBI Capital Market Services Limited, according to the prospectus.
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.54.89 |
|
|
1 |
Rs.83.65 |
|
Euro |
1 |
Rs.70.57 |
INFORMATION DETAILS
|
Information Gathered
by : |
PLK |
|
|
|
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
18 |
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.