MIRA
INFORM REPORT
|
Report Date : |
17.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
DECCAN CHRONICLE HOLDINGS LIMITED |
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Registered
Office : |
No.36, |
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Country : |
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Financials (as
on) : |
30.09.2012 |
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Date of
Incorporation : |
16.12.2002 |
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Com. Reg. No.: |
01-40110 |
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Capital
Investment / Paid-up Capital : |
Rs.417.944 Millions |
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CIN No.: [Company Identification
No.] |
L22122AP2002PLC040110 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
HYDD00862B |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Subject is engaged in Printing and Publishing Newspaper and
Periodicals. |
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No. of Employees
: |
4000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
C |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
Maximum Credit Limit : |
USD 400000 |
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Status : |
Sick Company |
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Payment Behaviour : |
Delayed |
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Litigation : |
Clear |
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Comments : |
The company is declared as a sick company under BIFR (Board for Industrial
and Financial Reconstruction). It had registered a case under section 15(1)
of the Sick Industrial Companies (Special Provisions) Act 1985 (SICA) As Case
No.66/2013. The company has incurred a huge loss from its operations during 2012. Payment terms are delayed. The company can be considered for business dealings on fully 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.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
We are living in a world
where volatility and uncertainty have become the New Normal. We saw a
change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once
powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and the
US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in
agriculture, industry and services. Dampening sentiment led to a cut-back in
investment as well as private consumption expenditure. Inflation remained
at high levels fuelled by the pressure from the food and fuel sectors. The
large fiscal and current account deficit s continued to cause grave concern. It
is imperative that India regains its growth trajectory of 8-9 % sooner than
later. This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
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/
Corporate Office/ Factory : |
No. 36, Sarojini Devi Road, Secunderabad – 500003, Andhra Pradesh,
India |
|
Tel. No.: |
91-40-27803930 (5 Lines) / 27805392/ 27805393/ 27805397 |
|
Fax No.: |
91-40-27805256/ 27803870 |
|
E-Mail : |
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|
Website : |
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Factory 2 : |
Industrial Estate, District |
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Factory 3 : |
Dowleswaram, District |
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Factory 4 : |
MVP Colony, District |
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Factory 5 : |
Tapovanam Colony, Distrtict Ananthapur, |
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Factory 6 : |
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Factory 7 : |
Vavilapally Colony, District Karimnagar, |
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Factory 8 : |
Kompally, District Ranga Reddy, |
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Factory 9 : |
Kondapur, District, Ranga Reddy, |
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Factory 10: |
Industrial Estate, Guindy, Chennai, |
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Factory 11 : |
Bommasandra, Industrial Area, Bengaluru, |
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Factory 12: |
Kurudampalayam Village, Coimbatore, Tamilnadu, India |
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Publishing Centers : |
Located at: ·
·
·
·
·
Anantapur ·
Karimnagar ·
Nellor ·
Chennai, Tamilnadu |
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Representative Offices : |
Located at: ·
Pune ·
Asian Age, ·
Mumbai ·
·
Kolkata ·
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Branches : |
Located at: ·
Ahmedabad ·
·
Mumbai ·
·
Kolkata |
DIRECTORS
(AS ON 30.09.2013)
|
Name : |
Mr. T.
Venkattram Reddy |
|
Designation : |
Chairman |
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|
|
Name : |
Mr. T Vinayak Ravi Reddy |
|
Designation : |
Vice Chairman cum Managing Director |
|
Date of Birth/Age : |
14.09.1961 |
|
Qualification : |
MBA |
|
Date of Appointment : |
30.12.2002 |
|
|
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|
Name : |
P. K. Iyer |
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Designation : |
Vice Chairman |
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|
Name : |
Dr. V Lakshmana Charya |
|
Designation : |
Director (Independent and Non Executive) |
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Date of Birth/Age : |
05.09.1940 |
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Qualification : |
M.Com, LL.M, FCS, ICWA, PG. Diploma Labour Laws, Ph. D |
|
Date of Appointment : |
08.12.2012 |
|
|
|
|
Name : |
Mr. Venkateswarlu Malapaka |
|
Designation : |
Director (Independent and Non Executive) |
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Date of Birth/Age : |
19.05.1956 |
|
Qualification : |
PG Diploma in Business Management |
|
Date of Appointment : |
08.12.2012 |
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|
Name : |
Mr. V. Suresh |
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Designation : |
Director (Independent and Non Executive) |
|
Date of Birth/Age : |
06.06.1966 |
|
Qualification : |
B.SC |
|
Date of Appointment : |
08.12.2012 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 30.06.2013)
|
Category of
Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
|
|
|
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
68250523 |
32.66 |
|
|
68250523 |
32.66 |
|
|
|
|
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
68250523 |
32.66 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
17075632 |
8.17 |
|
|
262282 |
0.13 |
|
|
17337914 |
8.30 |
|
|
|
|
|
|
|
|
|
|
45690083 |
21.86 |
|
|
|
|
|
|
|
|
|
|
54711437 |
26.18 |
|
|
20469694 |
9.80 |
|
|
2512568 |
1.20 |
|
|
2253284 |
1.08 |
|
|
175 |
0.00 |
|
|
259109 |
0.12 |
|
|
123383782 |
59.04 |
|
|
|
|
|
Total Public
shareholding (B) |
140721696 |
67.34 |
|
|
|
|
|
Total (A)+(B) |
208972219 |
100.00 |
|
|
|
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|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
|
|
|
Total
(A)+(B)+(C) |
208972219 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Subject is engaged in Printing and Publishing Newspaper and
Periodicals. |
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
4000 (Approximately) |
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Bankers : |
Not Available |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
C B Mouli and Associates Chartered Accountant |
|
Address : |
125, M G Road, Secundrabad – 500003, Andhra Pradesh India |
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Associates Companies : |
· India Travel Bureau Private Limited · Deccan Chronicle Marketeers Private Limited ·
·
Deccan Chronicle ( · Andhra Bhoomi Publication (W) Private Limited |
CAPITAL STRUCTURE
(AS ON 30.09.2012)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
350000000 |
Equity Shares |
Rs.2/- each |
Rs.700.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
208972219 |
Equity Shares |
Rs.2/- each |
Rs.417.944
Millions |
|
|
|
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|
3 (a) Reconciliation of the
number of shares and amount outstanding at the beginning and at the end of the
reporting period:
|
Particulars |
As on 30.09.2012 |
|
|
|
Number of Shares |
Rs. In Millions |
|
Equity shares of Rs.2/- each with voting rights |
|
|
|
At the beginning of the period |
24,34,72,219 |
486.944 |
|
Add: Issued during the period - Fresh Issue/
Conversion of FCCB's |
-- |
-- |
|
Less: Shares Bought
Back during the period |
3,45,00,000 |
69.000 |
|
Outstanding at the end of the period |
20,89,72,219 |
417.944 |
Details of Shares
Bought Back during the year
In terms of public
announcement dated 6 May, 2011 for buyback of equity shares, the company had bought
back and extinguished 3,45,00,000 equity shares being the maximum equity shares
authorised for buy back and accordingly the buy back was completed on 29
August,2011.
3 (b) Details of
shares held by the holding company, the ultimate holding company, their
subsidiaries and associates:
3 (c) Details of
shares held by each share holder holding more than 5% shares:
|
Particulars |
As on 30.09.2012 |
|
|
|
Number of Shares Held |
% Holdings |
|
Equity shares of
Rs.2/- each with voting rights |
|
|
|
T. Venkattram Reddy |
2,61,53,332 |
12.52 |
|
T. Vinayak Ravi Reddy |
2,61,65,445 |
12.52 |
|
P. K. Iyer |
2,79,32,744 |
13.37 |
|
Religare Finvest Limited |
3,02,49,275 |
14.48 |
3(d) Shares issued
for consideration other than for cash
2,17,50,250 Equity
Shares issued in earlier years for consideration other than cash as fully paid
pursuant to take over of Partnership firm Deccan Chronicle and upon
amalgamation of Deccan Chronicle Private Limited and Nandi Publishers Private
Limited with the Company.
3(e) 13,82,60,500
fully paid Equity Shares were issued as Bonus shares in the earlier years.
FINANCIAL DATA
[All figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
30.09.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
417.944 |
486.944 |
|
(b) Reserves & Surplus |
|
(317.848) |
12314.495 |
|
(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) |
|
100.096 |
12801.439 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
|
1472.012 |
2681.161 |
|
(b) Deferred tax liabilities (Net) |
|
0.000 |
832.683 |
|
(c) Other long
term liabilities |
|
79.270 |
73.736 |
|
(d) long-term
provisions |
|
102.474 |
100.274 |
|
Total Non-current
Liabilities (3) |
|
1653.756 |
3687.854 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
|
37556.981 |
4453.466 |
|
(b)
Trade payables |
|
1523.126 |
224.887 |
|
(c)
Other current liabilities |
|
1336.485 |
911.883 |
|
(d) Short-term
provisions |
|
5.014 |
6.511 |
|
Total Current
Liabilities (4) |
|
40421.606 |
5596.747 |
|
|
|
|
|
|
TOTAL |
|
42175.458 |
22086.040 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i) Tangible
assets |
|
7701.685 |
8475.193 |
|
(ii)
Intangible Assets |
|
72.475 |
163.605 |
|
(iii)
Capital work-in-progress |
|
1875.967 |
628.331 |
|
(iv)
Intangible assets under development |
|
29053.188 |
0.000 |
|
(b) Non-current Investments |
|
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
222.632 |
431.675 |
|
(e) Other
Non-current assets |
|
136.324 |
132.519 |
|
Total Non-Current
Assets |
|
39062.271 |
9831.323 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
|
0.000 |
0.000 |
|
(b)
Inventories |
|
210.843 |
1334.094 |
|
(c)
Trade receivables |
|
1311.464 |
2451.096 |
|
(d) Cash
and cash equivalents |
|
158.729 |
7037.960 |
|
(e)
Short-term loans and advances |
|
419.957 |
1033.739 |
|
(f)
Other current assets |
|
1012.194 |
397.828 |
|
Total
Current Assets |
|
3113.187 |
12254.717 |
|
|
|
|
|
|
TOTAL |
|
42175.458 |
22086.040 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
484.446 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
12095.703 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
12580.149 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
3288.656 |
|
|
2] Foreign Currency Convertible Bonds |
|
|
134.591 |
|
|
3] Unsecured Loans |
|
|
0.000 |
|
|
TOTAL BORROWING |
|
|
3423.247 |
|
|
DEFERRED TAX LIABILITIES |
|
|
796.913 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
16800.309 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
7700.471 |
|
|
Capital work-in-progress |
|
|
376.834 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
2106.189 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
620.371 |
|
|
Sundry Debtors |
|
|
1955.484 |
|
|
Cash & Bank Balances |
|
|
5916.438 |
|
|
Other Current Assets |
|
|
0.000 |
|
|
Loans & Advances |
|
|
1855.113 |
|
Total
Current Assets |
|
|
10347.406 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
|
|
3562.900 |
|
|
Other Current Liabilities |
|
|
0 |
|
|
Provisions |
|
|
167.691 |
|
Total
Current Liabilities |
|
|
3730.591 |
|
|
Net Current Assets |
|
|
6616.815 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
16800.309 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.09.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
7860.805 |
9761.629 |
8911.939 |
|
|
|
Other Income |
573.338 |
555.423 |
307.515 |
|
|
|
TOTAL (A) |
8434.143 |
10317.052 |
9219.454 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Consumption of Materials and Cost of Purchases and Services |
6679.365 |
4260.856 |
3175.825 |
|
|
|
Employee benefits expenses |
1388.270 |
968.216 |
654.690 |
|
|
|
Other Expenses |
3449.247 |
1613.271 |
578.727 |
|
|
|
TOTAL (B) |
11516.882 |
6842.343 |
4409.242 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(3082.739) |
3474.709 |
4810.212 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
7338.772 |
590.115 |
451.253 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(10421.511) |
2884.594 |
4358.959 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
812.345 |
515.735 |
422.485 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(11233.856) |
2368.859 |
3936.474 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(829.819) |
743.031 |
1327.293 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(10404.037) |
1625.828 |
2609.181 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
5273.845 |
5261.665 |
3945.571 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Changes in treatment of franchise rights / Others |
0.000 |
513.648 |
9.604 |
|
|
|
Dividend |
0.000 |
0.000 |
729.323 |
|
|
|
Corporate tax on dividends |
0.000 |
0.000 |
123.948 |
|
|
|
Transfer to debenture redemption reserve |
0.000 |
500.000 |
130.212 |
|
|
|
Transfer to general reserve |
0.000 |
600.000 |
300.000 |
|
|
BALANCE CARRIED
TO THE B/S |
(5130.192) |
5273.845 |
5261.665 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
152.495 |
0.000 |
NA |
|
|
TOTAL EARNINGS |
152.495 |
0.000 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(48.16) |
6.68 |
10.73 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
31.12.2012 |
31.03.2013 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
1023.200 |
1075.300 |
|
Total Expenditure |
|
868.000 |
798.600 |
|
PBIDT (Excl
OI) |
|
155.200 |
276.700 |
|
Other Income |
|
0.000 |
0.000 |
|
Operating
Profit |
|
155.200 |
276.700 |
|
Interest |
|
56.100 |
23.900 |
|
Exceptional
Items |
|
0.000 |
0.000 |
|
PBDT |
|
99.100 |
252.800 |
|
Depreciation |
|
121.200 |
104.600 |
|
Profit
Before Tax |
|
(22.100) |
148.200 |
|
Tax |
|
0.000 |
0.000 |
|
Profit After Tax |
|
(22.100) |
148.200 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
(22.100) |
148.200 |
KEY RATIOS
|
PARTICULARS |
|
30.09.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(123.36)
|
15.76 |
0.28 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(142.91)
|
24.27 |
44.17 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(99.89)
|
11.04 |
21.81 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(112.23)
|
0.19 |
0.31 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
389.92
|
0.56 |
0.27 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.08
|
2.19 |
2.77 |
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 |
Yes |
|
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 |
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 |
30.09.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
|
|
Short Term
Borrowings |
|
|
|
Term loans: |
|
|
|
(i) Term loans from banks |
500.000 |
0.000 |
|
(ii) Term loans from others |
1750.000 |
0.000 |
|
Other Financial Facilities - Unsecured |
5450.000 |
0.000 |
|
Unsecured Inter corporate deposits |
620.000 |
0.000 |
|
|
|
|
|
Total |
8320.000 |
0.000 |
CORPORATEINFORMATION
The Company is in
the businesses of Printing and publication of newspapers and periodicals,
sports and entertainment, chain of leisure stores offering various consumers
lifestyle products. The Company is the publisher of English Daily Newspapers
–“Deccan Chronicle”, “The Asian Age”, “Financial Chronicle” and “Andhra Bhoomi”
a Telugu Daily, Weekly and Monthly. The Company is the owner of the Hyderabad
Franchise of the Indian Premier League (IPL) “Deccan Chargers”, created by the
Board of Control for Cricket in India (BCCI), presently franchise ownership is
under dispute before arbitration. Odyssey is a neighborhood leisure store
offering consumer lifestyle products like books, music, stationery, gift items,
toys, eye ware etc.
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY OVERVIEW
The Indian Entertainment and Media (E&M) industry is set to grow
robustly over the next few years on the back of steady macroeconomic growth,
rising spending power and positive demographic indicators. The industry
revenues are expected to reach 1,764 billion INR (37.6 billion USD) by 2016,
with a CAGR of about 17% from 2012 to 2016. Currently, India is only the 14th
largest E and M market in the world with industry revenues contributing about
1% of its GDP. On the other hand, China is already the third-largest market in
the world and is likely to surpass Japan over the next decade to become the
second largest market worldwide, after the US.
The industry as a whole has been slowing down for the past few years and
the economic slowdown affected it further and your Company is no exception to
the same. Paper industry anywhere in the world will survive on the
advertisement revenue. The major contributors to advertisements to the News
Papers of the Company are Governments, Government Undertakings and Corporate
houses. In view of the above adverse economic factors and unfriendly industrial
climate as also, cessation of certain arrangements and competition from
competitors, there was no expected growth in the advertisement revenues.
OPERATIONS REVIEW
Deccan Chronicle, the Flagship News paper of the Company continues to be
the Leading News Paper in South India. The Company publishes editions from
Hyderabad, Visakhapatnam, Vijayawada, Rajahmundry, Anantapur, Nellore,
Karimnagar, Chennai, Bangalore, Coimbatore, Kochi, Thiruvananthapuram and
Kozhikode. During the financial year the Company has restructured its
operations and reinstated its assets and liabilities. An exhaustive review of
policies with regard to the sale of advertisement, circulation and brand
building strategies scaling down the operation on other fronts has been
undertaken by the management and accordingly, the Company captured the value of
the brands namely Deccan Chronicle and Andhra Bhoomi and this has given a huge
leverage to the Company and expected to get better yields in future and enhance
the enterprise value and the investment value of the investors and
shareholders.
FRANCHISE RIGHTS
OF “DECCAN CHARGERS”
The Hyderabad Franchise “Deccan Chargers” of the Indian Premier League
(IPL), created by the Board of Control for Cricket in India (BCCI) is owned by
the Company. During this accounting period, the BCCI gave a differential
treatment to the Company and citing some untenable reasons and alleged breach
of the terms of agreement by the Company, terminated the franchise in a one
sided manner and approach adversely affecting the revenue source of the Company
and erosion of the Asset base of the Company. In spite of the above adverse
implications, the Company cleared the arrears of fee to the players and freed
the Deccan Charges from hypothecation/charges. As per the orders of the
Honorable High Court of Bombay, BCCI and the Company referred the issues to the
Arbitrator for resolution of the dispute. The Company filed claim petition
before the Arbitrator against BCCI for loss of profit, loss of brand creation
damages, etc. The Company is hopeful of favorable outcome in the matters before
the Leaned Arbitrator.
SCALLING DOWN OF
OPERATIONS OF ODYSSEY – A CHAIN OF LEISURE STORES
The Company's operations of “odyssey” dealing in retail trading outlets
have been scaled down to rationalize the business operations.
Affect of expansions.
The Company launched news papers editions in other parts of south India
during the previous years. News Paper industry will survive only on the
advertisement revenue and advertisement revenue is a factor that is connected
to the circulation and readership. Hence, any paper enterprise has to sacrifice
and suffer loss till such time, the paper gets the required circulation and
viewership and till such time there is bound to be mismatch between the revenue
and cost. While the revenue from the operations in Andhra Pradesh is positive
and good, the company witnessed mismatch between the revenues and cost in other
southern states due to the above factors.
In the light of the above incidents and factors, the Company has
suffered losses to the tune of Rs.10404.000 Millions against a profit of
Rs.1625.800 Millions during the previous year.
OUTLOOK
The Company during the period changed some policies and reinstated
assets and liabilities. The Company has been actively defending all the cases
filed against it by the creditors. The management has been maintaining cordial
relationship with the lenders and the workforce. A process of consultation with
the creditors has been set in motion. To mitigate the financial crisis and
funds flow, the management has decided to go for a scheme of arrangement with
its creditors/lenders as per the provisions of the Companies Act, 1956
involving de-merger of print division of the Company and reorganization of the
debt subject to the approval of the creditors/lenders/shareholders and other
statutory authorities and the Courts. The Company has the requisite support in
particular financial support to implement the scheme and discharge the
financial obligations. Once the scheme of arrangement is approved, the Company
is confident of achieving high growth in terms of revenue as well as
operational profit in the years to come.
CONTINGENT LIABILITIES
The details of the Contingent Liabilities to the extent not provided as
follows:
|
Particulars |
30.09.2012 |
31.03.2011 |
|
|
|
|
|
Claims against
the Company not acknowledged as debt Writ Petitions filed against the Company
at various courts |
894.180 |
0.000 |
|
Guarantees given
by the Banks towards performance and Contractual Commitments |
0.511 |
5.677 |
|
Corporate Guarantee
given towards obtaining of Loan by related party entity |
500.000 |
0.000 |
|
Letters of
Credit |
2.946 |
0.000 |
|
Income Tax
Demand disputed before CIT and ITAT |
28.346 |
10.754 |
|
Provident fund
demand disputed with provident fund organization |
0.985 |
0.000 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10378494 |
27/09/2012 |
95,000,000.00 |
AXIS BANK
LIMITED |
FIRST FLOOR,
6-3-879/B, G PULLA REDDY BUILDING, GREEN LAND, BEGUMPET, HYDERABAD, ANDHRA
PRADESH - 500016, INDIA |
B58906744 |
|
2 |
10374369 |
03/09/2012 |
2,500,000,000.00 |
IDBI BANK
LIMITED |
IDBI TOWER WTC COMPLEX,
CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA |
B57216731 |
|
3 |
10373236 |
06/02/2013 * |
550,000,000.00 |
JM FINANCIAL
ASSET RECONSTRUCTION COMPANY PRIVATE |
141, MAKER CHAMBERS
III, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA |
B68994920 |
|
4 |
10392425 |
17/08/2012 |
450,000,000.00 |
ICICI SECURITIES
LIMITED |
ICICI CENTRE,
H.T.PAREKH MARG, CHURCHGATE, MUMBAI- 400 005, MAHARASHTRA - 400020, INDIA |
B57573925 |
|
5 |
10368791 |
15/09/2012 * |
1,000,000,000.00 |
KOTAK MAHINDRA
BANK LIMITED |
36-38A, NARIMAN
BHAVAN, 227,D, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA |
B58334020 |
|
6 |
10370489 |
28/12/2012 * |
1,000,000,000.00 |
PEGASUS GROUP ONE
TRUST - IX- PEGASUS ASSETS RECONSTRUCTION PRIVATE LIMITED |
55-56, 5TH
FLOOR, FREE PRESS HOUSE, NARIMAN POINT |
B67106690 |
|
7 |
10367878 |
02/08/2012 |
700,000,000.00 |
INDIAN OVERSEAS
BANK |
LARGE CORPORATE BRANCH,
JUBILEE HILLS, BANJARA HI |
B44633063 |
|
8 |
10367699 |
25/03/2013 * |
500,000,000.00 |
JM FINANCIAL
ASSET RECONSTRUCTION COMPANY PRIVATE |
141, MAKER CHAMBERS
III, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA |
B72404841 |
|
9 |
10362752 |
15/09/2012 * |
1,700,000,000.00 |
IDFC LIMITED |
KRM TOWER, 8TH
FLOOR, HARRINGTON ROAD, CHETPET, CHENNAI, TAMILNADU - 600034, INDIA |
B57672230 |
|
10 |
10363680 |
17/07/2012 * |
1,000,000,000.00 |
AXIS BANK
LIMITED |
6-3-879/B,
GROUND FLOOR, G PULLA REDDY BUILDING, |
B57364374 |
|
11 |
10360363 |
25/07/2012 * |
3,500,000,000.00 |
ICICI BANK
LIMITED |
LANDMARKRACE
COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA |
B57683674 |
|
12 |
10360365 |
25/07/2012 * |
1,400,000,000.00 |
ICICI BANK
LIMITED |
LANDMARKRACE
COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA |
B57685752 |
|
13 |
10368870 |
17/08/2012 * |
1,088,897,811.00 |
RELIGARE FINVEST
LIMITED |
D3, P3B,,
DISTRICT CENTR, SAKET, NEW DELHI, DELHI - 110017, INDIA |
B45643053 |
|
14 |
10432840 |
29/05/2012 |
2,400,000,000.00 |
SREI
INFRASTRUCTURE FINANCE LIMITED |
VISHWAKARMA,86C,TOPSIA
ROAD (SOUTH), KOLKATA, WEST BENGAL - 700046, INDIA |
B58263583 |
|
15 |
10353821 |
15/03/2012 |
300,000,000.00 |
CANARA BANK |
T.S.R. COMPLEX,
2ND FLOOR, 1-7-1, S.P. ROAD, SECU |
B38978680 |
|
16 |
10331696 |
31/12/2011 * |
1,500,000,000.00 |
CANARA BANK |
PRIME CORPORATE
BRANCH, S.P. ROAD, SECUNDERABAD, |
B31160161 |
|
17 |
10337180 |
26/12/2011 |
1,000,000,000.00 |
CORPORATION BANK |
INDUSTRIAL FINANCE
BRANCH, NO.30, RALLARAM BUILDING, MISSION ROAD, BANGALORE, KARNATAKA -
560027, INDIA |
B32802159 |
|
18 |
10326831 |
25/03/2013 * |
1,440,000,000.00 |
JM FINANCIAL
ASSET RECONSTRUCTION COMPANY PRIVATE |
141, MAKER CHAMBERS
III, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA |
B72403876 |
|
19 |
10297150 |
17/07/2012 * |
3,000,000,000.00 |
AXIS BANK
LIMITED |
6-3-879/B,
GROUND FLOOR, G PULLA REDDY BUILDING, |
B57358749 |
|
20 |
10301179 |
15/04/2011 |
1,000,000,000.00 |
TATA CAPITAL
LIMITED |
ONE FORBES, DR V
B GANDHI MARG,FORT, MUMBAI, MAHARASHTRA - 400001, INDIA |
B12346987 |
|
21 |
10284853 |
24/03/2011 |
500,000,000.00 |
KOTAK MAHINDRA
BANK LIMITED |
36-38A, NARIMAN
BHAVAN, 227,D, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA |
B12289104 |
|
22 |
10149727 |
31/12/2008 |
1,000,000,000.00 |
IL & FS
TRUST COMPANY LIMITED |
IL & FS
FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRA, KURLA COMPLEX BANDRA EAST, MUMBAI,
MAHARASHTRA |
A55010631 |
|
23 |
10136759 |
19/06/2009 * |
480,000,000.00 |
THE KARUR VYSYA
BANK LIMITED |
RP ROAD,
SECUNDERABAD, ANDHRA PRADESH - 500003, INDIA |
A64147937 |
|
24 |
10100976 |
19/04/2008 |
1,050,000,000.00 |
IL & FS
TRUST COMPANY LIMITED |
IL & FS
FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRA, KURLA COMPLEX BANDRA EAST,
MUMBAI, MAHARASHTRA |
A37773470 |
|
25 |
10044196 |
14/03/2007 |
300,000,000.00 |
ICICI BANK
LIMITED |
ICICI BANK TOWERS,
1-11-256, BEGUMPET, LEVEL IV, HYDERABAD, ANDHRA PRADESH - 500016, INDIA |
A12652335 |
|
26 |
10024783 |
31/12/2011 * |
1,500,000,000.00 |
CANARA BANK |
PRIME CORPORATE
BRANCH, S.P. ROAD, SECUNDERABAD, |
B31160914 |
|
27 |
90260328 |
24/10/2005 |
200,000,000.00 |
IL & TRUST
COMPANY LIMITED |
BANDRA KURLA
COMPLEX, MUMBAI, MAHARASHTRA, INDIA |
- |
|
28 |
90128889 |
29/06/2005 * |
300,000,000.00 |
IL & FS
TRUST COMPANY LTD. |
THE LI & FS FINANCIAL
CENTRE, C-22; G-BLOCK. BANDRA KURLA COMPLEX; BANDRA (E), MUMBAI, MAHARASHTRA |
- |
|
29 |
90128606 |
01/11/2004 * |
50,000,000.00 |
CANARA BANK |
R.P. ROAD
BRANCH, SECUNDERABAD, UTTAR PRADESH, INDIA |
- |
|
30 |
90294961 |
28/02/2003 |
8,500,000.00 |
ICICI BAN K
LIMITED |
110 PRAKASH
PRESIDIUM MAHATMA GANDHI SALAI, NUNGA |
- |
|
31 |
90293985 |
20/05/2002 |
421,767.00 |
FLAT SUNDRAM
AUTO FINANCE LTD |
NO. 21 PATULLOS ROAD,
CHENNAI, TAMIL NADU - 600020, INDIA |
- |
* Date of charge modification
FIXED ASSETS:
· Land
· Building
· Plant and Machinery
· Aircraft
· Computer
· Furniture and Fixture
· Vehicles
NEWS:
DECCAN CHRONICLE HOLDINGS
LIMITED GOES SICK, ENDS UP IN BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION
19 September, 2013
The open, beleaguered Deccan Chronicle Holdings Limited (DCHL) has finally declared itself sick and checked into the Board for Industrial and Financial Reconstruction (BIFR). The latest development comes even as the company is facing considerable heat from multiple lenders trying to recover dues running into over Rs.4,0000.000 Millions.
On Wednesday, the company informed the stock exchanges that BIFR had registered
a case under Section 15 (1) of the Sick Industrial Companies (Special
Provisions) Act 1985 (SICA). "The honorable Board for Industrial and
Financial Reconstruction (BIFR) has registered our reference under section
15(1) of the Sick Industrial Companies (Special Provisions) Act 1985 as Case
No.66/2013 vide their letter No. 3 (D-1/BC/2013) dated September 17,
2013," DCHL said in a BSE filing.
According to Section 15(1) of SICA, the board of directors of the company must,
within 60 days from the date of finalization of the company's audited accounts
for the financial year at the end of which the company has become a sick
industrial company, make a reference to BIFR for determination of the measures
that shall be adopted with respect to the company.
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.61.69 |
|
|
1 |
Rs.98.59 |
|
Euro |
1 |
Rs.83.67 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
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.