MIRA INFORM REPORT

 

 

Report Date :

26.12.2014

 

IDENTIFICATION DETAILS

 

Name :

VIACOM 18 MEDIA PRIVATE LIMITED [w.e.f.03.12.2007]

 

 

Formerly Known As :

MTV NETWORKS INDIA PRIVATE LIMITED [w.e.f.26, 2003]

 

MTV INDIA PRIVATE LIMITED [w.e.f.21.03.1996]

 

PJ entertainment private limited

 

 

Registered Office :

Zion Bizworld, Subhash Road - A, Vile Parle (East), Mumbai – 400057, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

19.12.1995

 

 

Com. Reg. No.:

11-095508

 

 

Capital Investment / Paid-up Capital :

Rs. 955.380 Millions

 

 

CIN No.:

[Company Identification No.]

U92100MH1995PTC095508

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMM10374A

 

 

PAN No.:

[Permanent Account No.]

AAACM9164E

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Subject is in the business of broadcasting, distributing, producing audio-visual programs, marketing and selling commercial advertising on 'channels' - Colors, Rishtey India, MTV, MTV Indies, Nickelodeon, Nickelodeon Jr., Sonic, VH1 and Comedy Central and also generates revenue from licensing and merchandising of products, brand solutions and marketing partnerships and also production and distribution of films.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (62)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

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

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of “TV18 Broadcast Limited”, India. It is a well-established company having fine track record.

 

The company has processed decent operational performance which has resulted into sound profitability achieved from its operation during 2014.

 

Rating also takes into consideration financial and managerial support that company receives from parent company supported by satisfactory performance of its flagship channel ‘Colors’ and diversified entertainment content offerings by company in various genres.

 

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

 

In view of strong holding support, the company can be considered good for normal 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.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long term Bank facilities = AA-

Rating Explanation

High degree of safety and very low credit risk.

Date

September 22, 2014

 

 

Rating Agency Name

CARE

Rating

Short term Bank facilities = A1+

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

September 22, 2014

 

 

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 31-03-2014.

 

 

INFORMATION DECLINED BY

 

Name :

Mr. Saumitra Deva

Designation :

Finance Executive

Contact No.:

91-22-66622424

Date :

24.12.2014

 

 

LOCATIONS

 

Registered Office :

Zion Bizworld, Subhash Road - A, Vile Parle (East), Mumbai – 400057, Maharashtra, India

Tel. No.:

91-22-42581818/ 66622424

Fax No.:

91-22-42581890

E-Mail :

sujeet.jain@viacom18.com

shirish.bhoite@viacom18.com

krunal.sheta@viacom18.com

media@viacom18.com

saumitra.deva@viacom18.com

Website :

http://www.viacom18.com

 

 

DIRECTORS

 

AS ON 30.09.2014

 

Name :

Mr. Raghav Bahl

Designation :

Director

Address :

E-36, Sector – 30, Noida – 201301, Uttar Pradesh, India

Date of Birth/Age :

02.01.1961

Date of Appointment :

06.11.2007

DIN No.:

00015280

 

 

Name :

Mr. Sarbvir Singh

Designation :

Director

Address :

House 46, Sector 37, Noida – 201301, Uttar Pradesh, India

Date of Birth/Age :

27.09.1971

Date of Appointment :

28.09.2012

DIN No.:

00509959

 

 

Name :

Mr. Robert Marc Bakish

Designation :

Director

Address :

17 Old Neversink Road, Danbury, Ct – 06811, USA

Date of Birth/Age :

14.12.1963

Date of Appointment :

20.03.2007

DIN No.:

02069095

 

 

Name :

Mr. Wade Cullen Davis

Designation :

Director

Address :

464, Temama St., San Francisco, Ca – 94103, USA

Date of Birth/Age :

06.03.1972

Date of Appointment :

07.08.2007

DIN No.:

02157793

 

 

Name :

Mr. Paul Jerome Rourke

Designation :

Director

Address :

8, Perrine Lane, Cranbury NJ,08512, USA

Date of Birth/Age :

26.07.1963

Date of Appointment :

28.09.2012

DIN No.:

05144789

 

 

KEY EXECUTIVES

 

Name :

Mr. Saumitra Deva

Designation :

Finance Executive

 

 

Name :

Mr. Sujeet Veerchand Jain

Designation :

Secretary

Address :

2904, A Wing, Oberoi Woods, Next to Oberoi Mallm Goregaon [East], Mumbai – 400097, Maharashtra, India

Date of Birth/Age :

04.08.1973

Date of Appointment :

21.02.2008

PAN No.:

AAWPJ4965H

 

 

Name :

Ravish Kumar

Designation :

Executive Vice President – Regional Channels

 

 

Name :

Ferzad Palia

Designation :

General Manager – English Language Channels

 

 

Name :

Narayan Prabhat Ranjan

Designation :

Chief Financial Officer

 

 

Name :

Anuj Poddar

Designation :

Executive Vice President – Regional Channels

 

 

Name :

Anu Sikka

Designation :

Head of Content, Nick

 

 

Name :

Abhinav Chopra

Designation :

Executive Vice President – HR and Administration

 

 

Name :

Aditya Swamy

Designation :

Executive Vice President and Business Head - MTV

 

 

Name :

Jaideep Singh

Designation :

Head – Integrated Business Solutions

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2014

 

Names of Equity Shareholders

No. of Shares

 

MTV Asia Ventures (India) Pte Limited

47768791

TV18 Broadcast Limited

47768791

 

 

Total

 

95537582

 

 

Names of Preference Shareholder

No. of Shares

 

TV18 Broadcast Limited

2000

 

 

Total

 

2000

 

 

AS ON 30.09.2014

 

Equity Share Breakup

Percentage of Holding

Category

 

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

50.00

Bodies corporate

50.00

 

 

Total

 

100.00

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is in the business of broadcasting, distributing, producing audio-visual programs, marketing and selling commercial advertising on 'channels' - Colors, Rishtey India, MTV, MTV Indies, Nickelodeon, Nickelodeon Jr., Sonic, VH1 and Comedy Central and also generates revenue from licensing and merchandising of products, brand solutions and marketing partnerships and also production and distribution of films.

 

 

Brand Names :

“VIACOM18”

 

 

Agencies Held :

--

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

 

PRODUCTION STATUS: NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference:

Not Divulged

Name of the Person (Designation):

Not Divulged

Contact Number:

Not Divulged

Since how long known:

Not Divulged

Maximum limit dealt:

Not Divulged

Experience:

Not Divulged

Remark

Not Divulged

 

 

Customers :

Reference:

Not Divulged

Name of the Person (Designation):

Not Divulged

Contact Number:

Not Divulged

Since how long known:

Not Divulged

Maximum limit dealt:

Not Divulged

Experience:

Not Divulged

Remark

Not Divulged

 

 

No. of Employees :

Information declined by the management

 

 

Bankers :

Bank Name:

Not Divulged

Branch:

Not Divulged

Person Name (with Designation):

Not Divulged

Contact Number:

Not Divulged

Name of Account Holder:

Not Divulged

Account Number:

Not Divulged

Account Since (Date/ Year of A/c Opening):

Not Divulged

Average Balance Maintained (Optional):

Not Divulged

Credit Facilities Enjoyed (CC/OD/Term Loan):

Not Divulged

Account Operation:

Not Divulged

Remarks: Not Divulged

 

·         HDFC Bank Limited

HDFC Bank House, Senapati Bapat Marg, Lower Parel [West], Mumbai - 400013, Maharashtra, India

 

·         ING Vysya Bank Limited

Narian Manzil, Ground Floor, Shop No. G1 to G5, I Floor, Shop No.1001 To 1007, Barakhamba Road,, New Delhi - 110001, Delhi, India

 

·         Union Bank of India

239, Vidhan Bhavan Marg, Union Bank Bhavan, 1st Floor, Nariman Point, Mumbai - 400021, Maharashtra, India

 

·         Central Bank of India

Industrial Finance Branch, Chander Mukhi, Ground Floor, Nariman Point, Mumbai - 400021, Maharashtra, India

 

·         Yes Bank Limited

Nehru Centre, 9th Floor, Discovery of India, Dr. A. B. Road, Worli, Mumbai - 400018, Maharashtra, India

 

 

Facilities :

 

SECURED LOANS

31.03.2014

(Rs. In Millions)

31.03.2013

(Rs. In Millions)

LONG-TERM BORROWINGS

 

 

Rupee term loans from banks

[Term loan from Bank is secured by a first pari passu charge over Fixed Assets and Current Assets belonging to the Company.]

1700.000

1900.000

SHORT TERM BORROWINGS

 

 

Loans repayable on demand from banks

3400.680

3756.350

 

 

 

Total

 

5100.680

5656.350

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Price Waterhouse

Chartered Accountants

Address :

252, Veer Savarkar Marg, Shivaji Park, Dadar (West), Mumbai – 400028, Maharashtra, India

Income-tax PAN of auditor or auditor's firm :

ADEPG6306N

 

 

Holding company :

TV18 Broadcast Limited [L74300DL2005PLC137214]

 

 

Ultimate Holding company :

·         Network18 Media and Investments Limited [L65910DL1996PLC076419]

·         Viacom Inc.

 

 

Subsidiary company :

·         Viacom18 US Inc.

·         Viacom18 Media (UK) Limited

·         The Indian Film Company (Cyprus) Limited

·         Roptonal Limited, Cyprus

·         The Indian Film Company Limited

 

 

Subsidiaries of Joint Venture Entity :

·         IndiaCast UTV Media Distribution Private Limited [U22222MH2012PTC238498]

·         Indiacast US Limited

·         Indiacast UK Limited

 

 

Joint venture :

IndiaCast Media Distribution Private Limited [U74300DL2008PTC177244]

 

 

Other Related Parties :

·         TV18 Home Shopping Network Limited [U93091DL2006PLC149705]

·         MTV Asia, Singapore

·         MTV Network New York

·         VIMN Netherlands BV

·         MTV Networks Europe

·         Nickelodeon India Private Limited [U92110MH1999PTC121902]

·         Nickelodeon Asia Holdings Pte. Limited, Singapore

·         AETN18 Media Private Limited [U74300DL2010PTC207895]

·         Viacom Media Networks

·         Digital18 Media Limited [U22130DL2007PLC162067]

·         Bigtree Entertainment Private Limited [U99999MH1999PTC120990]

·         Prism TV Private Limited [U93000TG2008PTC062365]

·         Paramount Pictures Global, Division of Viacom Global (Netherlands) B.V. Colosceum Media Private Limited [U74120DL2007PTC170870]

·         Viacom International Inc.

·         Network 18 Publications Limited

·         Greycells18 Media Limited [U65923DL2006PLC150020]

 

 

CAPITAL STRUCTURE

 

AS ON 30.09.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

164,998,000

Equity Shares

Rs. 10/- each

Rs. 1649.980 Millions

2,000

Preference Shares

Rs. 10/- each

Rs. 0.020 Million

 

 

 

 

 

Total

 

Rs. 1650.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

95,537,582

Equity Shares

Rs. 10/- each

Rs. 955.376 Millions

2,000

Preference Shares

Rs. 10/- each

Rs. 0.020 Million

 

 

 

 

 

Total

 

Rs. 955.396 Millions

 

 

AS ON 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

165,000,000

Equity Shares

Rs. 10/- each

Rs. 1650.000 Millions

 

 

 

 

 

Issued Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

104,164,124

Equity Shares

Rs. 10/- each

Rs. 1041.640 Millions

 

 

 

 

 

Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

95,537,582

Equity Shares

Rs. 10/- each

Rs. 955.380 Millions

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2014

31.03.2013

31.03.2012

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

955.380

955.380

955.380

(b) Reserves & Surplus

6233.560

5543.560

6564.040

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

7188.940

6498.940

7519.420

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

1700.000

1900.000

1980.000

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

1700.000

1900.000

1980.000

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

3756.620

4220.720

3044.430

(b) Trade payables

5971.680

4980.860

4323.400

(c) Other current liabilities

1053.490

719.060

692.520

(d) Short-term provisions

35.640

23.740

20.340

Total Current Liabilities (4)

10817.430

9944.380

8080.690

 

 

 

 

TOTAL

19706.370

18343.320

17580.110

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

266.600

290.970

379.730

(ii) Intangible Assets

32.680

13.530

10.620

(iii) Capital work-in-progress

42.510

42.810

41.730

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

3726.790

3653.370

3664.450

(c) Deferred tax assets (net)

0.000

0.000

64.520

(d)  Long-term Loan and Advances

2397.200

1858.290

1489.180

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

6465.780

5858.970

5650.230

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

6475.600

5567.160

5667.310

(c) Trade receivables

3952.590

4189.270

4810.600

(d) Cash and cash equivalents

1206.710

1302.370

525.220

(e) Short-term loans and advances

1287.600

1081.500

724.470

(f) Other current assets

318.090

344.050

202.280

Total Current Assets

13240.590

12484.350

11929.880

 

 

 

 

TOTAL

19706.370

18343.320

17580.110

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2014

31.03.2013

31.03.2012

 

 

 

 

 

 

GROSS INCOME

16370.420

15832.890

15019.310

 

 

 

 

 

Less

EXPENSES

NA

NA

NA

 

 

 

 

 

 

DEPRECIATION/ AMORTISATION                    

151.900

144.820

82.850

 

 

 

 

 

 

PROFIT/ [LOSS] BEFORE EXCEPTIONAL ITEMS AND TAXES

853.180

(177.130)

(1086.930)

 

 

 

 

 

Less

EXCEPTIONAL ITEMS

Provision for diminution in the value of Investments

0.000

(11.080)

(882.490)

 

 

 

 

 

 

PROFIT/ [LOSS] BEFORE TAX

853.180

(188.210)

(1969.420)

 

 

 

 

 

Less

PROVISION OF TAX                                                                

0.000

0.000

0.000

 

 

 

 

 

Less

DEFERRED TAX ADJUSTMENTS

163.180

221.300

55.480

 

 

 

 

 

 

PROFIT/ [LOSS] AFTER TAX

690.000

(409.510)

(2024.900)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(2903.950)

(4704.380)

(2679.480)

 

 

 

 

 

Add

Write off debit balance in statement of profit and loss as at March 31, 2011 against capital reserve and securities premium account pursuant to scheme of arrangement

0.000

2679.490

0.000

 

 

 

 

 

Less

Amount debited on merger of IFC Distribution Private Limited as per Scheme of Arrangement

0.000

331.390

0.000

 

 

 

 

 

Less

Net loss of IFC distribution private limited for the period from January 1, 2012 to March 31, 2012

0.000

138.160

0.000

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(2213.950)

(2903.950)

(4704.380)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

1338.090

1057.130

604.800

 

 

 

 

 

 

Earnings/ [Loss] Per Share (Rs.)

7.22

(4.29)

(21.19)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Return on Total Assets

(PBT/Total Assets}

(%)

5.35

(1.28)

(14.26)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.12

(0.03)

(0.26)

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.76

0.94

0.67

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.22

1.26

1.48

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

 

DEBT EQUITY RATIO

 

Particulars

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Share Capital

955.380

955.380

955.380

Reserves & Surplus

6564.040

5543.560

6233.560

Net worth

7519.420

6498.940

7188.940

 

 

 

 

Long-term borrowings

1980.000

1900.000

1700.000

Short term borrowings

3044.430

4220.720

3756.620

Total borrowings

5024.430

6120.720

5456.620

Debt/Equity ratio

0.668

0.942

0.759

 

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Gross Income

15019.310

15832.890

16370.420

 

 

5.417

3.395

 

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Gross Income

15019.310

15832.890

16370.420

Profit/ (Loss)

(2024.900)

(409.510)

690.000

 

(13.48%)

(2.59%)

4.21%

 

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

CURRENT MATURITIES OF LONG TERM DEBT

 

PARTICULARS

31.03.2014

(Rs. In Millions)

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

 

 

 

 

Current maturities of long-term debt

200.000

80.000

20.000

 

 

 

 

 

 

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

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

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

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

Yes

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10511066

01/07/2014

1,500,000,000.00

YES BANK LIMITED

NEHRU CENTRE, 9TH FLOOR, DISCOVERY OF INDIA, DR. A. B. ROAD, WORLI, MUMBAI, MAHARASHTRA - 400018, INDIA

C13566302

2

10325624

01/07/2014 *

2,600,000,000.00

AXIS BANK LIMITED

TRISHUL, OPP SAMARTHESHWAR TEMPLE, NEW LAW GARDEN ELLISBRIDGE, AHMEDABAD, GUJARAT - 380009, INDIA

C13595269

3

10325727

01/07/2014 *

1,650,000,000.00

ING VYSYA BANK LIMITED

22, M G ROAD, BANGALORE, BANGALORE, KARNATAKA - 560001, INDIA

C14011910

4

10279582

15/07/2014 *

2,000,000,000.00

CENTRAL BANK OF INDIA

INDUSTRIAL FINANCE BRANCH, CHANDER MUKHI, GROUND 
FLOOR, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA

C13679071

5

10129505

04/07/2013 *

2,000,000,000.00

HDFC BANK LIMITED

HDFC BANK HOUSE, SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA

B80011620

 

* Date of charge modification

 

 

UNSECURED LOANS

 

PARTICULARS

31.03.2014

(Rs. In Millions)

31.03.2013

(Rs. In Millions)

SHORT TERM BORROWINGS

 

 

Loans repayable on demand from banks

355.940

464.370

 

 

 

Total

 

355.940

464.370

 

 

CHANGE OF ADDRESS:

 

The Registered Office of the Company has been shifted from 36B, Dr. R K Shirodkar Road, Parel, Mumbai – 400012, Maharashtra, India to the present address w.e.f.06.02.2012.

 

 

GENERAL INFORMATION

 

The Company is incorporated in India under the Companies Act, 1956 of India as a private limited Company. The Company is a jointly controlled entity between MTV Asia Ventures (India) Pte. Limited, Mauritius and TV18 Broadcast Limited.

 

The Company is engaged in the business of broadcasting, distributing, producing audio-visual programs, marketing and selling commercial advertising on 'channels' - Colors, Rishtey India, MTV, MTV Indies, Nickelodeon, Nickelodeon Jr., Sonic, VH1 and Comedy Central. Additionally, the Company also generates revenue from licensing and merchandising of products, brand solutions and marketing partnerships. The Company is also in the business of production and distribution of films.

 

 

OPERATIONS AND PROSPECTS

 

During the year, on December 15, 2013, after obtaining all necessary regulatory approvals, the Company launched "Rishtey", a 24x7 free-to-air general entertainment channel. Rishtey will primarily consist of Hindi Fiction Shows/Serials, Non-Fiction/Reality Shows, Block-Buster Bollywood Films, Grand Events, Award Shows and Music Concerts aimed to cater to the need of every Indian household.

 

Also, during the year, the Company launched "MTV Indies", a music channel to promote Indie culture in all spheres. After obtaining all necessary regulatory approvals, MTV Indies was commercially launched on March 14, 2014. MTV Indies is aimed to act as a platform to discover independent artists across the country and to promote them to the mainstream audience.

 

 

MERGER

 

During the year, pursuant to the Order passed by the District Court of Nicosia, Cyprus, effective November 6, 2013, The Indian Film Company (Cyprus) Limited, Cyprus, an indirect wholly owned subsidiary of the Company stands merged into The Indian Film Company Limited, Cyprus, another indirect wholly owned subsidiary of the Company. This merger was undertaken with the overall objective of simplifying the corporate structure and for managing the operations efficiently and economically.

 

Pursuant to this merger, the entire business and undertaking (including all assets and liabilities) of The Indian Film Company (Cyprus) Limited have been consolidated with The Indian Film Company Limited, Cyprus.

 

 

CONTINGENT LIABILITIES:

 

PARTICULARS

31.03.2014

(Rs. In Millions)

31.03.2013

(Rs. In Millions)

Claims against the Company not acknowledged as debts:

 

 

Legal matters:

i. Litigation filed against the Company for non-payment of brokerage for its old office and residential premises

0.000

2.630

ii. Case filed against the Company for infringement of literary and copyrights right

30.000

30.000

iii. Case filed by the ex-employee for terminating his services

0.780

0.670

 

 

 

Taxation matters:

i. Income Tax Appeals filed in respect of disputed demands for the Assessment Years 2005-06 to 2010-11.

629.050

148.050

ii. TDS demands for short deduction of taxes for the Assessment Year 2009-10 to 2012-13

518.400

451.680

iii. Service Tax notice for non recovery of service tax on reimbursement of expenses received from overseas companies for the years 2008-09 to 2010-11.

77.480

77.080

iv. Service tax notice for levying of service tax for commission income earned/transponder costs for the years 2005-06 to 2008-09.

33.840

33.840

v. VAT credit on export income has been disallowed for the year 2005-06.

34.600

0.000

vi. VAT liability on distribution agreements has been levied for movie exhibition in State of Uttar Pradesh for the years 2009-10 and 2010-11.

0.130

0.000

Bank Guarantee given by the Company

(a) It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings.

 

(b) The Company does not expect any reimbursements in respect of the above contingent liabilities.

150.000

1.500


FIXED ASSETS:

 

·         Plant and equipment

·         Other plant and equipment

·         Furniture and fixtures

·         Office equipment

·         Computer equipments

·         Leasehold improvements

·         Computer software

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                                       None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 63.45

UK Pound

1

Rs. 98.88

Euro

1

Rs. 77.62

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

BVA

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--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

DEFAULTERS 

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

62

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

 

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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