MIRA INFORM REPORT
|
Report Date : |
14.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
SITI CABLE NETWORK LIMITED (w.e.f. 03.10.2012) |
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Formerly Known
As : |
WIRE AND WIRELESS INDIA LIMITED |
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Registered
Office : |
Continental Building, 135, Dr. Annie Besant Road, Worli, Mumbai –
400018, Maharashtra |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
24.03.2006 |
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Com. Reg. No.: |
11-160733 |
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Capital
Investment / Paid-up Capital : |
Rs. 452.850 Millions |
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CIN No.: [Company Identification
No.] |
L64200MH2006PLC160733 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMW02947A |
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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
: |
The Company is engaged in Distribution of Television
Channels through analogue and digital cable distribution network, primary
internet and allied services. |
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No. of Employees
: |
Information declined by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (19) |
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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 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a part of the Essel group. It is an established company
having moderate track. Management has reported an accumulated loss, which has further eroded
its networth during 2013. The rating also take into consideration, the ability of the subject to
improve its financial position with the ongoing digitization amidst the
increasing competition. However, business is active. Payments are reported to be slow. In view of well-established promoter group, the subject 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.
INDIAN ECONOMIC OVERVIEW
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of 4.9
%, Fitch Rating said. The global rating agency expects the economy to pick up
in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The company
board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities = AA (structured obligation) |
|
Rating Explanation |
High degree of safety regarding timely servicing of financial
obligation and very low credit risk |
|
Date |
11.12.2013 |
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 DENIED
Management Non Co-operative
(Contact no. : 91-120-4526700)
LOCATIONS
|
Registered Office : |
Continental Building, 135, Dr. Annie Besant Road, Worli, Mumbai –
400018, Maharashtra, India |
|
Tel. No.: |
Not Available |
|
Fax No.: |
91-22-24900302 / 24900213 |
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Email: |
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|
Website : |
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Corporate Office : |
Building No. FC 09, Gate No. 3, Sector 16A, Film City, Noida – 201304,
Uttar Pradesh, India |
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Tel. No.: |
91-120-4526700 |
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Fax No.: |
91-120-4526777 / 4265232 |
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Regional Office : |
Located at:
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Overseas Office
: |
Located at:
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DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Subhash Chandra |
|
Designation : |
Chairman cum Managing Director |
|
|
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|
Name : |
Mr. B.K. Syngal |
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Designation : |
Independent Director |
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Name : |
Mr. Sureshkumar Agarwal |
|
Designation : |
Independent Director |
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|
Name : |
Mr. Amit Goenka |
|
Designation : |
Whole Time Director (resigned
w.e.f. 31.05.2013) |
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|
Name : |
Mr. Vinod Kumar Bakshi |
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Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Suresh Kumar |
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Designation : |
Company Secretary |
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Name : |
Mr. Subodh Kumar |
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Designation : |
Non-Executive Director |
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Appointed |
30.05.2013 |
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Name : |
Mr. VD Wadhwa |
|
Designation : |
Executive Director and CEO |
|
Appointed : |
01.06.2013 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 02.04.2014
|
Category of Shareholder |
No.
of Shares |
Percentage
of Holding |
|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1021000 |
0.17 |
|
|
262040427 |
42.66 |
|
|
263061427 |
42.83 |
|
|
|
|
|
|
184181000 |
29.99 |
|
|
184181000 |
29.99 |
|
Total
shareholding of Promoter and Promoter Group (A) |
447242427 |
72.82 |
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
13529658 |
2.20 |
|
|
180794 |
0.03 |
|
|
4001 |
0.00 |
|
|
20425699 |
3.33 |
|
|
34140152 |
5.56 |
|
|
|
|
|
|
41325806 |
6.73 |
|
|
|
|
|
|
62443143 |
10.17 |
|
|
26867895 |
4.37 |
|
|
2193492 |
0.36 |
|
|
7575 |
0.00 |
|
|
500 |
0.00 |
|
|
2177398 |
0.35 |
|
|
8018 |
0.00 |
|
|
1 |
0.00 |
|
|
132830336 |
21.63 |
|
Total
Public shareholding (B) |
166970488 |
27.18 |
|
Total
(A)+(B) |
614212915 |
100.00 |
|
(C) Shares
held by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
614212915 |
0.00 |
Shareholding belonging to the category
"Promoter and Promoter Group"
|
Sr. No. |
Name of the
Shareholder |
Details of
Shares held |
Encumbered
shares (*) |
Total shares
(including underlying shares assuming full conversion of warrants and
convertible securities) as a % of diluted share capital |
|||
|
No. of Shares
held |
As a % of grand
total (A)+(B)+(C) |
No |
As a percentage |
As a % of |
|||
|
1 |
Direct Media Solutions Private Limited
|
14,00,00,000 |
22.79 |
135475000 |
96.77 |
22.06 |
22.79 |
|
2 |
Agamesh Builders Private Limited
|
5,15,69,898 |
8.40 |
31300000 |
60.69 |
5.10 |
8.40 |
|
3 |
Bioscope Cinemas Private Limited
|
3,31,60,000 |
5.40 |
0 |
0.00 |
0.00 |
5.40 |
|
4 |
Digital Satelite Holding Private Limited |
1,98,00,000 |
3.22 |
19800000 |
100.00 |
3.22 |
3.22 |
|
5 |
Bioscope Cinemas Private Limited
|
1,75,10,529 |
2.85 |
0 |
0.00 |
0.00 |
2.85 |
|
6 |
Essel Media Ventures
Limited |
11,64,31,000 |
18.96 |
0 |
0.00 |
0.00 |
18.96 |
|
7 |
Essel International Limited |
6,77,50,000 |
11.03 |
0 |
0.00 |
0.00 |
11.03 |
|
8 |
Ashok Mathai Kurien |
10,21,000 |
0.17 |
0 |
0.00 |
0.00 |
0.17 |
|
|
Total |
44,72,42,427 |
72.82 |
186575000 |
41.72 |
30.38 |
99.19 |
(*) The term encumbrance has the same meaning as assigned to it in regulation 28(3) of the SAST Regulations, 2011.
Shareholding belonging to the category
"Public" and holding more than 1% of the Total No. of Shares
|
Sl. No. |
Name of the Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
Total shares (including underlying shares assuming full conversion of warrants
and convertible securities) as a % of diluted share capital |
|
|
1 |
Religare Finvest Limited |
9525742 |
1.55 |
1.55 |
|
|
2 |
Kotak Mahindra Investments Limited |
9031596 |
1.47 |
1.47 |
|
|
|
Total |
18557338 |
3.02 |
3.02 |
|
Shareholding belonging
to the category "Public" and holding more than 5% of the Total No. of
Shares
|
Sl. No. |
Name(s) of the shareholder(s) and the
Persons Acting in Concert (PAC) with them |
No. of Shares |
Shares as % of Total No. of Shares |
Total shares (including underlying shares
assuming full conversion of warrants and convertible securities) as a % of
diluted share capital |
|
|
1 |
Nil |
0 |
0.00 |
0.00 |
|
|
|
Total |
0 |
0.00 |
0.00 |
|
BUSINESS DETAILS
|
Line of Business : |
The Company is engaged in Distribution of Television
Channels through analogue and digital cable distribution network, primary
internet and allied services. |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
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Bankers : |
·
Axis Bank Limited ·
IDBI Bank Limited ·
ICICI Bank Limited ·
ING Vysya Bank Limited, Narian Manzil, Ground
Floor, Shop No. G1 To G5, 1st Floor, Shop No.1001 To 1007,
Barakhamba Road, New Delhi - 110001, India ·
Standard Chartered Bank, 23, Marain Manzil,
Barakhamba Road, New Delhi - 110001, India |
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Facilities : |
Note 9.95% p.a Secured Redeemable
Non-Convertible Debenture Non convertible debentures are secured by ranking pari
passu mortgage and/ or charge/assignment of all the Company's immovable
properties, present and future and all the Company's movable, including
movable The debenture carries coupon rate of 9.95 % pa payable on semi annual basis. The debentures are redeemable at par in four six monthly installments starting from December 2010m 2 each of 20 % of the issue size and 2 each of 30% of the issue size. From Axis Bank Term loans are secured by Pari-passu charge on entire movable, both present and future, of the Company and on the receivables, cash and account of the company. Also secured by corporate guarantee of ZEELfor maintaining revolving Debt Service Reserve Account (DSRA) for 1 quarter of the interest and principal repayment to be funded 10 days before each due date, for the entire tenure of the loan.
From IDBI Bank Term loans are secured by mortgage and charge in favour of lender in a form satisfactory to the lender of all the borrowers immovable properties, both present and future, and as well as movable properties and charge by way of hypothecation and/ or pledge of the borrowers current assets. Also secured by corporate guarantee of ZEEL. Maintenance of Debt Service Rerserve Account (DSRA) for 2 quarters interest. The loan carries interest rate of the bank's prime lending rate payable on monthly basis. The loan are payable in 16 quarterly installment starting from the end of the one year from the date of disbursement. 15 quarterly installments starting from the end of the 18th month from
the date of first disbursement. Repayment at the end of tenure. From ICICI Bank Term loans are secured by charge by way of hypothecation on the Compnay's current assets which would include stocks and consumable stores and spares and such other movable including books debts, receivables both present and future, in a form and manner satisfactory to the bank, ranking pari passu with other banks/lenders. First charge on all moveable assets of the Company cash and account of the company ranking pari passu with other banks/1enders.Also secured by corporate guarantee of ZEEL for maintaining revolving Debt Service Reserve Account (DSRA) for 1 quarter of the interest and principal repayment to be funded 10 days before each due date, for the entire tenure of the loan. The loan carries interest rate of base rate plus 2.25% pa payable on the monthly basis. The loan payable in 16 quarterly installment starting from the end of the 15 months from the date of first disbursement 8 each of 5% of the loan and 8 each of 7.5% of the loan. Finance Lease
Obligations Secured by hypothecation of vehicles purchased there under. |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
Walker, Chandiok and Company Chartered Accountants |
|
Address: |
New Delhi, Delhi, India |
|
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|
Holding Company
: |
Bioscope Cinemas Private Limited (till November 9, 2012) |
|
|
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Associate
Company : |
Siti Chhattisgarh Multimedia Private Limited |
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Subsidiary
Companies : |
|
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|
|
|
Enterprises
owned or significantly influenced by key management personnel or their
relatives : |
|
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorized Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
740000000 |
Equity Shares |
Re. 1/- each |
Rs. 740.000 millions |
|
10000000 |
Preference Shares |
Re. 1/- each |
Rs. 10.000
millions |
|
|
|
|
|
|
|
Total |
|
Rs. 750.000
millions |
Issued Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
453440038 |
Equity Shares |
Re. 1/- each |
Rs. 453.440 millions |
|
|
Less:- Forfeiture Shares 1227122 Equity shares of Re. 1/- each |
|
Rs. 1.230 millions |
|
23436 |
Preference Shares |
Re. 1/- each |
Rs. 0.020 million |
|
|
|
|
|
|
|
Total |
|
Rs. 452.230 millions |
Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
Subscribed and Paid
up Capital |
|
|
|
|
|
|
|
|
|
452212916 |
Equity Shares |
Re. 1/- each |
Rs. 452.210 million |
|
23436 |
Preference Shares |
Re. 1/- each |
Rs. 0.020 million |
|
|
Shares Forfeiture Account |
|
Rs. 0.620 million |
|
|
|
|
|
|
|
Total |
|
Rs. 452.850 million |
Reconciliation of the shares outstanding at the beginning and at the end of the reporting period
|
Equity Shares |
31.03.2013 |
|
|
No of shares |
Rs. in millions |
|
|
Outstanding at the beginning of the year |
452242724 |
452.210 |
|
Add: Receipt of Call Money |
-- |
-- |
|
Less : Equity shares forfeited during the year |
-- |
-- |
|
Outstanding at the
end of the year |
452242724 |
452.210 |
PREFERENCE SHARES
There is no movement in preference share capital in current year and
previous year.
Terms/ rights attached to equity shares
The company has only one class of equity shares having par value of Re. 1 per share. Each holder of equity shares is entitled to one vote per share.
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts.
The distribution will be in proportion to the number of equity shares held by the shareholders.
Terms/ rights attached
to Preference shares
The Company has
only one class of 7.25% Non-cumulative redeemable preference shares of Rs. 1
each. The said preference shares were allotted to Zee Telefilms Limited (now
Zee Entertainment Enterprises Limited) onDecember29, 2006, pursuant to the
scheme of arrangement for demerger of cable business undertaking of Zee
Telefilms Limited approved by the Hon’ble Bombay High Court vide its order
dated November 17, 2006. Initially, as per the terms of the issue and
allotment, the said preference shares were due for redemption on December 29,
2008. However, with the written consent/approval of Zee Entertainment
Enterprises Limited, the terms of the issue of said preference shares was
varied by extending the period of redemption by another three years i.e. till
December 29, 2011. Later on June 6, 2011 these shares were transferred to Churu
Enterprises LLP by Zee Entertainment Enterprises Limited. Period for redemption
of preference shares has been extended by another period of five years till
December 29, 2016 by Churu Enterprises LLP. The preference shares are
redeemable at par. In the event of liquidation of the Company before redemption
of preference shares, the holders of preference shares will have priority over
equity shares in the payment of dividend and repayment of capital.
Shares held by
holding/ ultimate holding company and/ or their subsidiaries/ associates
Out of Equity and preference shares issued by the Company, shares held
by its holding company, ultimate holding company and their subsidiaries/
associates are as below:
|
Equity Shares |
31.03.2013 Rs. In millions |
|
Bioscope Cinemas Private Limited, the immediate holding company,
effective December 28, 2011. to November 9, 2012 (122,040,427 (previous year
262,040,427) equity shares of Rs.1 each
fully paid up) |
0.000 |
|
|
|
Details of
shareholders holding more than 5% shares in the company
|
Particulars |
31.03.2012 |
|
|
No of shares |
Rs. in millions |
|
|
Churu Enterprises LLP |
23436 |
100% |
|
Equity shares |
31.03.2013 |
|
|
No of shares |
% of Holding |
|
|
Bioscope Cinemas Private Limited, the immediate holding company, from December 28, 2011 to November 9, 2012. |
122,040,427 |
26.99% |
|
Direct Media Solutions Private Limited |
140,000,000 |
30.96% |
Terms of securities convertible into equity shares issued along with
earliest date of conversion.
During the year
ended March 31, 2013, the Company issued 162,000,000 convertible warrants on
preferential basis upon payment of a consideration of Rs. 20 per warrant. Each
convertible warrant is convertible into one equity share of Rs.1 each at a
premium of Rs.19 per share on payment of remaining consideration. Holders of
such warrants have the option to convert these warrants into equity shares upon
payment of aforesaid consideration on or before eighteen months from the date
of allotment of warrants, viz. March 19, 2013. Amount outstanding as at the
yearend and disclosed as money received against convertible warrants
constitutes Rs. 5 per warrant received from the holders of 162,000,000
warrants.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
452.850 |
452.850 |
452.820 |
|
(b) Reserves & Surplus |
(1,844.890) |
(1,226.480) |
(405.680) |
|
(c) Money received against
share warrants |
810.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
(582.040) |
(773.630) |
47.140 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
7,689.190 |
2,983.150 |
2,126.490 |
|
(b) Deferred tax liabilities
(Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
797.350 |
0.000 |
0.000 |
|
(d) long-term provisions |
22.580 |
16.300 |
12.620 |
|
Total
Non-current Liabilities (3) |
8,509.120 |
2,999.450 |
2,139.110 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
244.850 |
503.700 |
178.930 |
|
(b) Trade payables |
1,355.990 |
1,037.470 |
830.430 |
|
(c) Other current liabilities |
1,406.970 |
1,220.820 |
1,738.220 |
|
(d) Short-term provisions |
0.570 |
0.330 |
4.200 |
|
Total
Current Liabilities (4) |
3,008.380 |
2,762.320 |
2,751.780 |
|
|
|
|
|
|
TOTAL |
10,935.460 |
4,988.140 |
4,938.030 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
2,667.470 |
1,083.630 |
1,000.940 |
|
(ii) Intangible Assets |
217.110 |
67.290 |
32.980 |
|
(iii) Capital work-in-progress |
534.630 |
31.840 |
53.520 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
230.460 |
230.240 |
194.330 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
2,904.350 |
1,245.390 |
190.670 |
|
(e) Other Non-current assets |
593.750 |
292.180 |
300.220 |
|
Total
Non-Current Assets |
7,147.770 |
2,950.570 |
1,772.660 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
8.040 |
10.040 |
7.540 |
|
(b) Inventories |
47.220 |
126.490 |
373.570 |
|
(c) Trade receivables |
1,672.740 |
720.280 |
771.480 |
|
(d) Cash and cash equivalents |
1,102.720 |
656.750 |
880.900 |
|
(e) Short-term loans and
advances |
917.730 |
491.480 |
1,063.580 |
|
(f) Other current assets |
39.240 |
32.530 |
68.300 |
|
Total
Current Assets |
3,787.690 |
2,037.570 |
3,165.370 |
|
|
|
|
|
|
TOTAL |
10,935.460 |
4,988.140 |
4,938.030 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
4160.120 |
2457.830 |
2177.560 |
|
|
|
Other Income |
132.530 |
206.650 |
94.880 |
|
|
|
TOTAL (A) |
4292.650 |
2664.480 |
2272.440 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of material consumed |
9.680 |
1.000 |
1314.1000 |
|
|
|
Purchase of stock in trade |
991.070 |
28.230 |
0.000 |
|
|
|
Changes in inventories of traded goods |
6.340 |
79.050 |
0.000 |
|
|
|
Carriage sharing, Pay channel and related costs |
1579.010 |
1468.680 |
0.000 |
|
|
|
Cost of goods sold |
0.000 |
0.000 |
73.960 |
|
|
|
Employee benefits expense |
231.650 |
196.160 |
195.450 |
|
|
|
Other Expenses |
834.720 |
666.840 |
510.250 |
|
|
|
Exceptional items |
0.000 |
231.500 |
0.000 |
|
|
|
TOTAL (B) |
3652.470 |
2671.460 |
2093.760 |
|
|
|
|
|
|
|
|
Less |
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
640.180 |
(6.980) |
178.680 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
862.080 |
565.210 |
566.430 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION
(C-D) (E) |
(221.900) |
(572.190) |
(387.750) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
396.510 |
236.780 |
172.960 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE TAX (E-F) (G) |
(618.410) |
(808.970) |
(560.710) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
12.400 |
6.390 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) AFTER TAX (G-H) (I) |
(618.410) |
(821.370) |
(567.100) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(5431.400) |
(4610.030) |
(4042.930) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(6049.810) |
(5431.400) |
(4610.030) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Carriage Income |
15.810 |
23.700 |
13.140 |
|
|
TOTAL EARNINGS |
15.810 |
23.700 |
13.140 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Plant and machinery |
24.700 |
76.510 |
12.140 |
|
|
|
Store and Spares |
3.010 |
0.380 |
0.000 |
|
|
|
STB |
2273.910 |
14.470 |
0.000 |
|
|
|
Computer Software |
0.000 |
30.780 |
0.000 |
|
|
TOTAL IMPORTS |
2301.620 |
122.140 |
12.140 |
|
|
|
|
|
|
|
|
|
|
Earnings/(Loss) Per Share (Rs.) |
(1.37) |
(1.82) |
(1.30) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 |
30.09.2013 |
31.12.2013 |
|
|
1st Quarter |
2nd Quarter |
3rd Quarter |
|
|
Unaudited |
Unaudited |
Unaudited |
|
Net Sales |
1209.500 |
1266.000 |
946.300 |
|
Total Expenditure |
1074.600 |
1136.400 |
989.100 |
|
PBIDT (Excl OI) |
134.900 |
129.600 |
(42.800) |
|
Other Income |
40.200 |
8.300 |
123.700 |
|
Operating Profit |
175.100 |
137.900 |
80.900 |
|
Interest |
258.700 |
303.300 |
309.900 |
|
Exceptional Items |
0.000 |
0.000 |
81.400 |
|
PBDT |
(83.600) |
(165.400) |
(147.600) |
|
Depreciation |
171.300 |
192.800 |
156.100 |
|
Profit Before Tax |
(254.900) |
(358.200) |
(303.700) |
|
Tax |
0.000 |
0.000 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(254.900) |
(358.200) |
(303.700) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
(13.000) |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(254.900) |
(371.200) |
(303.700) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(14.41)
|
(30.83)
|
(24.96) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(14.87)
|
(32.91)
|
(25.75) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(6.08) |
(17.12) |
(11.95) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
1.06 |
1.05 |
(11.89) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
(13.63)
|
(4.51)
|
48.91 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.26 |
0.74 |
1.15 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT/EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
452.820 |
452.850 |
452.850 |
|
Reserves & Surplus |
(405.680) |
(1,226.480) |
(1,844.890) |
|
Money received against share
warrants |
0.000 |
0.000 |
810.000 |
|
Net
worth |
47.140 |
(773.630) |
(582.040) |
|
|
|
|
|
|
long-term borrowings |
2,126.490 |
2,983.150 |
7,689.190 |
|
Short term borrowings |
178.930 |
503.700 |
244.850 |
|
Total
borrowings |
2,305.420 |
3,486.850 |
7,934.040 |
|
Debt/Equity
ratio |
48.906 |
(4.507) |
(13.631) |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Revenue from operations |
2,177.560 |
2,457.830 |
4,160.120 |
|
|
|
12.871 |
69.260 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Revenue from operations |
2,177.560 |
2,457.830 |
4,160.120 |
|
Profit After Tax |
(567.100) |
(821.370) |
(618.410) |
|
|
(26.04%) |
(33.42%) |
(14.87%) |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG-TERM BORROWINGS
|
Particulars |
Current 31.03.2013 (Rs.
In Millions) |
Current 31.03.2012 (Rs.
In Millions) |
31.03.2011 (Rs.
In Millions) |
|
Current maturities of long-term borrowings |
1,063.510 |
944.750 |
1,170.840 |
|
|
|
|
|
|
Total |
1,063.510 |
944.750 |
1,170.840 |
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
---- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if
applicable) |
No |
|
21] |
Market information |
---- |
|
22] |
Litigations that the firm
/ promoter involved in |
---- |
|
23] |
Banking Details |
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 |
VIEW INDEX OF
CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10472075 |
23/12/2013 |
1,000,000,000.00 |
ING VYSYA BANK LIMITED |
NARIAN MANZIL, GROUND FLOOR, SHOP NO. G1
TO G5, I |
B94207305 |
|
2 |
10449725 |
29/08/2013 |
1,000,000,000.00 |
AXIS BANK LIMITED |
TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE,
LAW GARDEN ELLISBRIDGE, AHMEDABAD - 380006, GUJARAT, INDIA |
B85267177 |
|
3 |
10425197 |
10/06/2013 * |
2,521,200,000.00 |
STANDARD CHARTERED BANK |
23, MARAIN MANZIL, BARAKHAMBA ROAD, NEW
DELHI - 110001, INDIA |
B77108736 |
|
4 |
10411292 |
13/03/2013 |
1,000,000,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI,
VADODARA - 390015, GUJARAT, INDIA |
B70611348 |
|
5 |
10382658 |
25/10/2012 |
2,200,000,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI, VADODARA
- 390015, GUJARAT, INDIA |
B60507852 |
|
6 |
10368881 |
26/09/2012 * |
600,000,000.00 |
IDBI TOWERWTC COMPLEX, CUFFE PARADE,
MUMBAI - 400005, MAHARASHTRA, INDIA |
B60460748 |
|
|
7 |
10362108 |
08/06/2012 |
750,000,000.00 |
AXIS BANK LIMITED |
CORPORATE BANKING BRANCH, AXIS HOUSE, P.B.
MARG, |
B42227850 |
|
8 |
10331925 |
25/01/2012 |
2,500,000,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI,
VADODARA - 390015, GUJARAT, INDIA |
B30599096 |
|
9 |
10322011 |
01/11/2011 |
1,000,000,000.00 |
AXIS BANK LIMITED |
209, ATLANTA , GROUND FLOOR, NARIMAN
POINT, MUMBAI - 400021, MAHARASHTRA, INDIA |
B27360841 |
|
10 |
10264159 |
05/04/2011 * |
1,000,000,000.00 |
AXIS BANK LIMITED |
209, ATLANTA, GROUND FLOOR,, NARIMAN
POINT, MUMBAI - 400021, MAHARASHTRA, INDIA |
B11199718 |
* Date of charge
modification
CORPORATE
INFORMATION
Subject (formerly
known as Wire and Wireless (India) Limited) (hereinafter referred to as ‘the Company’
or ‘SCNL’ or ‘the Holding Company’ or ‘the Parent Company’) was incorporated in
the state of Maharashtra, India. The Company and its subsidiaries and associate
(collectively known as ‘the Group’ ) are engaged in distribution of television
channels through analogue and digital cable distribution network, primary
internet and allied services.
BUSINESS OVERVIEW
The Company is one
of India’s largest Multi System Operator (MSO) with 56 analogue and 14 digital
head ends and a network of more than 12000 Kms of optical fibre and coaxial
cable. It provides its cable services in India’s 60 key cities and the
adjoining areas, having reach of over 10 millions viewers.
The Company
deploys State-of-the-art technology for delivering multiple TV signals to enhance
consumer viewing experience. Its product range includes Digital Cable
Television, Analogue Cable Television, Broadband and Local Television Channels.
The Company has been providing services in digital and analogue mode, armed
with technical capability to provide features like Broadband services, Video on
Demand, Movie on Demand, Pay per View, Electronic programming Guide (EPG) and
gaming through a Set Top Box (STB). All products are marketed under “SITI”
brand name.
During the year,
the Company has successfully implemented the digitization of TV signals in its
20 key markets which fall sunder Phase-1 and 2 cities of mandated Digital
Addressable System (DAS) besides expanding Digital horizon in Cities falling in
DAS phase 3 and 4. For this transition, the Company has carried out Technology
up gradation and procurement of Set-top boxes (STB’s). The Company also aligned
the interests of local cable operators, content aggregators, broadcaster and
consumer in a transparent manner while complying with stipulated regulations
which gave a big push to the digitization drive of the Company.
The Company
expanded its business and ground presence by starting operations in newer areas
and it undertook strategic cost reduction initiatives to enhance efficiencies
and optimize resources. From almost every perspective FY2012-13 was an
impressive year for The Company:
The total revenues grew by 33% to Rs.4,836.600 millions from
Rs.3,642.600 millions during the last fiscal.
The Company posted
a consolidated operating profit (EBITDA) of Rs. 869.600 millions, which was a
significant achievements compared to operational profit of Rs. 192.000 millions
during the last fiscal.
The Company
expands its business operations in new Strategic towns in Central India
Locations and Eastern part of the country.
The Company has
seamlessly installed 3 million Set-top-Boxes (STBs) in its markets in Phase-I
and Phase II.
The Company is the
first and only company in the digital cable space to provide “Own the Customer
(OYC)” web based subscriber management system application to its business
partners to serve the subscriber better. Initiated Subscriber Wise billing in
Digital Regime in adherence to Regulatory compliances and built consumer
connect.
MEDIA AND
ENTERTAINMENT INDUSTRY
According to
FICCI-KPMG Indian Media and Entertainment Industry Report, 2012 was a
challenging year for the industry as a whole, it was also a year of significant
changes; as value chains were re-arranged and business models redefined. These
changes, while painful in the short run, but will position the Indian M and E
industry on a stronger footing for the future.
The Indian M and E
industry grew from INR 728 billion in 2011 to INR 821 billion in 2012,
registering an overall growth of 12.6 percent. Given the impetus introduced by
digitization, continued growth of regional media, upcoming elections, strength
in the film sector and fast increasing new media businesses, the industry is
estimated to achieve a growth rateof11.8percent in 2013 to touch INR 917
billion. The sector is projected to grow at a healthy CAGR of 15.2 percent to
reach INR1661 billion by 2017.
Television
continues to be the dominant segment in the M&E sector; however strong
growth is visible in new media, animation, Films and Music segment on the back
of strong content and the benefits of digitization. The benefits of digital
address able system (DAS) rollout are expected to contribute significantly to
strong continued growth in the TV sector revenues and its ability to invest in
and monetize content. The sector is expected to grow at a CAGR of 18percent.
CABLE TV INDUSTRY
The total number
of TV households grew from 146 millions in 2011 to 154 millions by the end of
2012, showing an increase of 5.4 percent. The penetration of Cable and
Satellite (C and S) households increased from 81 percent of total TV households
in 2011 to 84 percent in 2012. The overall number of C and S households
increased by 11 millions during 2012 toreach130 millions, registering a growth
of 9 percent over last year. The year 2012 heralded the much awaited start to
digitization of cable industry. Despite some hiccups, Phase 1and 2 cities saw
significant progress in implementation of mandatory digital addressable system
(DAS). Digitalization underphase-1 of DAS has been a success with industry
attaining 100% digitization in Delhi and Mumbai, followed with some delay by
Kolkata.
Digital Cable TV
has been a clear winner garnering more than 70% share of digital Set-top-boxes
in these cities. At the end of March 2013, over 67% of the digitization target
has been achieved in Phase-2 cities of DAS as reviewed by MIB. The Cable TV
Industry now hopes to realize benefits over the medium term – including
enhanced ability to monetize content, greater transparency, equitable revenue
share across the value chain and hence increased ability to invest in
differentiated and sophisticated content. The benefits will be visible in
2013-14 as MSO drive the addressability and work with last mile local cable
operator to ramp up chosen content, billing and collection.
MANAGEMENT
DISCUSSION AND ANALYSIS
ECONOMIC OVERVIEW
GLOBAL ECONOMY
The global
economic growth in 2012 remained slow and declined for the second consecutive
year to 3.2% from 4% in 2011. The spillover effects of the sovereign crisis of
2011 in Euro Area and higher unemployment in developed economies, together with
lack of fresh capital infusion and high inflation in developing economies, led
to the overall slowdown.
A host of fiscal
and monetary measures were taken across the global economies to restore growth,
which is likely to pickup 2013onwards. Amidst the overall slow environment, the
U.S. posted a comeback at 2.2% growth in 2012 and Japan too posted a comeback
at 2%. Emerging and developing economies led the global growth at 5.1%, though
with decline from6.4% in 2011.World Economic Outlook 2013 by IMF estimates
marginal economic growth at 3.3% globally, 1.2% for advanced economies and 5.3%
for developing & emerging economies in 2013.
INDIAN ECONOMY
The growth of
Indian economy also continued to face pressure for the second successive year
in FY 13. Courtesy the absence of fresh investments in capital projects and
slackness in completion of already planned capital investments. India’s exports
too declined and rising imports further added to widening current account
deficit of 4.6% of GDP as on December31, 2012, indicating lower imports from
India. Amidst this challenging environment, India recorded its lowest growth
rate of5% in last ten years as per Advance Estimates of Central Statistical
Office (CSO), May 2013.
A set of monetary
and fiscal measures, helped to check the momentum from declining further.
Indian government resumed its agenda of economic reforms with relaxation of FDI
norms in multiple industries like Aviation, Broadcasting, Single/Multi Brand
Retail, Insurance and Pension. The disinvestment of Public Sector Undertakings
(PSUs) to the tune of Rs.240000.000 millions on the other hand brought fresh
funds. India’s fiscal deficit in turn was checked at 5.2% of the GDP in FY’13against
5.9%in FY’12.42RBI had dual task of checking inflation and restoring growth
through liquidity. RBI during FY13, particularly in second half, reduced Cash
Reserve Ratio (CRR) thrice, from 4.75% to 4%, a move intended to infuse
liquidity in Indian banking systems to the tune of about Rs.42500.000 millions.
This was supported further by reducing Bank Repo Rate (RR) thricefrom7.5% to
6.5%.
COMPANY OVERVIEW
SITI Cable Network
Limited (erstwhile known as Wire and Wireless (India) Limited) is one of the
largest MSO in the country with presence across 60 major cities and adjoining
areas of the country providing digital & analogue TV Cable TV signals and
local TV Channels. Out of the four metros and 38 other urban cities with more
than 1 million population which have already undergone digitization in Phase 1
and 2, the Company provides DAS network in three phase 1 metros and 17cities
under phase 2 of the phased mandatory digitization. The Company is also set to
leverage its presence in about 40 cities out of 60cities in phase 3 of
digitization.
At present, the
Company has close to 10 million subscribers through its Local Cable Operator
(LCO) partners wherein more than 25% of these are already subscribing to
digital network through DAS. SITI has a robust deliveryplatform of 56analogue
& 14 digital head ends and 12000 kilometre of Optical Fibre and Coaxial
Cable Network. Besides providing digital cable distribution in 20 cities of
phase under phase 1 and 2 of digitization, SITI Cable provides analogue Cable
TV signal in many other rural and smaller urban towns which are still a step
away from complete digital convergence in next two phases. SITI Cable Network
is part of the Essel Group-India’s leading business conglomerate having
business interests panning across media, entertainment and broadcasting; TV
content distribution; print media, infrastructure development; and packaging
etc.
INDUSTRY OVERVIEW
INDIAN TELEVISION
INDUSTRY
Television is the largest medium for media and entertainment delivery in
India in terms of revenue, representing around 45 % of the total media and
entertainment industry. The TV industry continues to have more scope for
further growth over the coming years, as television penetration in India is
still at approximately 60% of total households, according to FICCI-KPMG report
2012.
TELEVISION CONTENT
DISTRIBUTION
India has 154
millions TV households as at the close of calendar year 2012 with 79% paid
Cable and Satellite (C and S) TV households. The paid C and S penetration is
expected to reach 91% of the 191 millions estimated TV households in2017.
FY 13 was a
landmark year for the Indian TV content distribution sector. The much awaited
convergence of cable distribution from conventional analogue to revolutionary
digital TV signal was finally rolled out in four metro cities in phase 1fromthe
midnight of October 31, 2012. Following the success of phase 1 and viewers
welcome to digitization with about 68%conversion, as on September 2012
(Ministry of I&B release), the government stood firm to its deadline of
phase 2digitizationin another 38 urban cities with above 1 million population,
by the midnight of March 31, 2013. Even though the process of shift to digital
signal started on a moderate note, it picked up a month before the deadline.
The digitization is estimated to be 67% complete as on March 2013 as per
Ministry of I&B press release.
The advantages of
digitization over conventionally used analogue TV signal include:
• High capacity to
carry more number of channels
• Efficient
carrying capability of voice and data besides TV signals
• Possibility of
interactivity
• Enhanced picture
and sound quality
• Digital
addressability and accountability transparency
The leading Multi
System Operators (MSOs’), including SITI Cable Network, are striving to match
and exceed the customer friendly packages and services with those provided by
Direct to Home (DTH) service providers. These steps include engaging the LCOs
with a digitally managed subscriber management system to handle subscriber
queries and transactions. With a large cable TV network in place, the Digitally
Addressable System holds competitive edge over DTH. DAS has the ability to
offer bundled two way services like broadband, video on demand, digitization
after transition, HD channels and higher penetration in rural areas. As the
leading MSOs continue to lead the way by putting proper infrastructure in place
in line with the deadline set for the remaining two phases of digitization,
they are likely to sustain their market share in cable and satellite TV
distribution market.
Following the
convergence of entire country from analogue to digital TV signals, MSOs are likely
to reap-in the benefit of the same in the coming two to three years. The same
would be enabled by revenue sharing model with broadcasters, free to air
channels, and also the additional subscription fee that MSOs get out of value
added services, which are increasingly being used by subscribers at additional
cost. Higher Average Revenue per User (ARPU) shall be the significant
contributor to the Cable TV segment growth.
OUTLOOK
SITI Cable
believes in profitable growth and is poised to take the full advantage out of
the country’s leap towards ongoing digitization march as per TRAI guidelines,
which have already been kicked off in 2012 with marginal hiccups. The
convergence of C&S TV distribution from analogue to digitization signal
(Digital Addressable System or DAS) has already been implemented in four
metropolitan cities and subsequently another urban 38 cities with a population
of over 1millioneach, albeit the relatively slower acceptance in second phase
for digitization. The Company has by now seeded 3millionSTBs to meet the
requirements of its LCOs for their customers out of phase 1 and phase 2, while
the company has set an aggressive target to seed 5.5-6 million STBs in FY14.
As one of the
largest MSO operator with presence in 17 out of 38 cities in phase 2, the
Company is geared up to expand its revenue and profitability by getting the
advantage of fees or sale of STBs, apart from higher subscriptions in average
revenue per unit (ARPU). These will be enabled by end user consumer billing
with subscriber management billing in Phase1 and 2. Adding to our strength will
be “Own your Customer”, a unique subscriber management system that empowers an
LCO and gives them the advantage over LCOs in other networks The Company also
hopes to be the winner by taking advantage of revenue sharing model to be
pursued with broadcasters for HDs and other channels, including some free to
air channels with which its revenues and profitability can have a positive impact.
Today, India has
730 millions TV viewers, 154 millions TV Household and 79% paid C&S
penetration as per FICCI-KPMG Report 2013. The growth estimates are robust of
191 millions TV households in 2017 with 91% paid C and S penetration. In view
of the industry potential and SITI Cable’s leading edge, the Company looks
forward to exciting times ahead to garner much better profitability apart from
rising revenues.
CONTINGENT LIABILITIES
A contingent
liability is a possible obligation that arises from past events whose existence
will be confirmed by the occurrence or non-occurrence of one or more uncertain
future events beyond the control of the Group or present obligation that is not
recognized because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises in
extremely rare cases where there is a liability that cannot be recognized
because it cannot be measured reliably.
AUDITED FINANCIAL
RESULTS (STANDLONE) FOR THE YEAR ENDED 31ST MARCH 2014
(Rs. in Millions)
|
Sr. No. |
Particular |
Quarter Ended |
Nine Months Ended |
|
|
|
|
31.03.2014 |
31.12.2013 |
31.03.2014 |
|
|
|
AUDITED |
UNAUDITED |
AUDITED |
|
|
|
|
|
|
|
1. |
Net Sales/Income
from Operations |
1519.910 |
926.560 |
4850.190 |
|
|
Other Operating
Income |
141.340 |
19.740 |
198.760 |
|
|
Total Income From Operations (Net) |
1661.250 |
946.300 |
5048.950 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
Cost
of materials consumed |
0.750 |
1.760 |
23.450 |
|
|
Purchase
of stock in trade |
95.250 |
14.670 |
665.580 |
|
|
Changes
in inventories of finished goods, work in progress and stock in trade |
-- |
- |
- |
|
|
Carriage
sharing pay channel and related costs |
709.480 |
585.270 |
2133.380 |
|
|
Employee
benefits expenses |
67.000 |
70.340 |
272.790 |
|
|
Depreciation
and amortization expenses |
138.340 |
156.100 |
578.490 |
|
|
Other
expenses |
486.940 |
317.090 |
1335.380 |
|
|
Total Expenses |
1497.760 |
1145.230 |
5009.090 |
|
|
|
|
|
|
|
3. |
Profit/
(Loss)From Operations before Other Income, Interest and Exceptional Items
(1-2) |
163.490 |
(198.930) |
39.860 |
|
|
|
|
|
|
|
4. |
Other
Income |
51.200 |
123.700 |
116.970 |
|
|
|
|
|
|
|
5. |
Profit
/ (Loss)Before Interest and Exceptional Items (3+4) |
214.690 |
(75.230) |
156.830 |
|
|
|
|
|
|
|
6. |
Interest |
308.000 |
309.900 |
1179.920 |
|
|
|
|
|
|
|
7. |
Profit
/ (Loss)After Interest but before prior period Items (5-6) |
(93.310) |
(385.130) |
(1023.090) |
|
|
|
|
|
|
|
8. |
prior
period Items |
-- |
(81.400) |
- |
|
|
|
|
|
|
|
9. |
Profit/
(Loss) After prior period before Tax (7-8) |
(93.310) |
(303.730) |
(1023.090) |
|
|
|
|
|
|
|
10. |
Tax Expense |
|
|
|
|
|
a) Current
tax |
-- |
-- |
-- |
|
|
b)
Deferred tax |
-- |
-- |
-- |
|
|
Total |
-- |
-- |
-- |
|
|
|
|
|
|
|
11. |
Profit/
(Loss) After Tax (9-10) |
(93.310) |
(303.730) |
(1023.090) |
|
|
|
|
|
|
|
11. |
Paid-up
Equity Share Capital (Face Value of Rs.1/- Each) |
520.710 |
452.210 |
520.710 |
|
|
|
|
|
|
|
12. |
Reserves
Excluding Revaluation Reserve |
-- |
-- |
(1587.530) |
|
|
|
|
|
|
|
16. |
Basic and Diluted Earning Per
Share (EPS) (Rs.1)-Not Annualised |
|
|
|
|
|
a)
Basic and diluted EPS before extraordinary items |
(0.20) |
(0.70) |
(2.30) |
|
|
b)
Basic and diluted EPS after extraordinary items |
(0.20) |
(0.70) |
(2.30) |
|
|
|
|
|
|
|
17. |
Public Shareholding |
|
|
|
|
|
-Number
of Shares(in Millions) |
166.970 |
166.970 |
166.970 |
|
|
-
Percentage of Shareholding |
32.10 |
36.90 |
32.10 |
|
|
|
|
|
|
|
18. |
Promoters and Promoter Group
Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
- Number
of Shares (in Millions) |
186.580 |
131.780 |
186.580 |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of promoter and
promoter group) |
52.70 |
46.20 |
52.70 |
|
|
- Percentage
of Shares (as a % of the Total Share Capital of the Company) |
35.80 |
29.10 |
35.80 |
|
|
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
|
-
Number of Shares(in Millions) |
167.170 |
153.470 |
167.170 |
|
|
- Percentage
of Shares (as a % of the Total Shareholding of Promoter and Promoter Group) |
47.30 |
53.80 |
47.30 |
|
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
31.10 |
34.00 |
32.10 |
|
Particulars |
Quarter Ended 31.03.2014 |
|
Pending at the beginning of the quarter |
-- |
|
Received during the quarter |
1 |
|
Disposal during the quarter |
1 |
|
Remaining unresolved at the end of the year |
-- |
FIXED ASSETS
v
Tangible
Assets
- Building
- Plant and Machinery
- Computers
- Office Equipment
- Furniture and Fixtures
- Air conditioners
- Studio Equipment
- Vehicles
- STB'S
- IRD Boxes
v
Intangible
Assets
- Goodwill
- Program/ Film / Cable Rights
- Computers Software
WEBSITE DETAILS
NEWS / PRESS
RELEASE
SITI CABLE EBITDA AT RS. 1259 MILLION FOR
FY 2013-14
May 28, 2014
The Board of Directors of SITI Cable
Network Limited (SITI CABLE) (BSE: 532795, NSE: SITI CABLE EQ) in its meeting
held today, has taken on record the un-audited Consolidated Financial Results
of the company and its subsidiaries for the fourth quarter ended March 31, 2014
and audited consolidated annual financial results for the financial year
2013-14. SITI CABLE today reported fourth quarter consolidated total revenues
of Rs 2434 million and operating profit (EBITDA) of Rs. 279 million.
Mr. Subhash Chandra, Chairman, stated, “The Cable television industry in India
is rapidly changing with the visible signs of progression towards the complete
digitalization. The television viewers are getting familiar with inherent
advantages of digitization through cable, digital cable is playing an
instrumental role in digitization. Digital Cable Television is a major engine
of growth for SITI Cable across all geographies. Our sustained investment in
this segment will further enhance customer television viewing experience.
“Commenting on the performance, Mr. Chandra said, “SITI Cable ongoing efforts
to leverage its strengths in digital regime are reflecting in the performance
of the company”.
Mr. V D Wadhwa, CEO of SITI Cable commented, “Our continuous efforts towards
expanding the subscriber base, faster implementation of gross billing in Delhi
and Kolkata , hi-focus on adherence to regulatory compliances and cost controls
measure has helped us in delivering the healthy performance quarter on quarter
basis. During the year, we have set the benchmark in being the pioneer company
to monetize the business by collecting higher subscription on per subscriber
basis, best backend infrastructure, fair and transparent commercial policies in
dealing with all our associates”.
He further added, “We are well placed to benefit from the ongoing digitization
implementation and fully geared up to grow Revenue and Profitability at a
faster pace”.
SITI CABLE ACHIEVES LANDMARK OF 4 MILLION
DIGITAL CUSTOMERS
Apr 02, 2014
Noida, April 02, 2014: SITI Cable Network
Limited, the leading Cable Television service provider in India, has achieved
the landmark of 4 million digital customers as on 31st March 2014.
Encouraged by the significant improvement in the performance in FY13-14 and to support
the aggressive growth plan to grow subscriber base to 10 million in FY 14-15,
the promoters have invested additional Rs.2430 million in the Business.
As per the approval received from Foreign Investment Promotion Board (FIPB) in March
2013 to raise Rs. 3240 million from promoter entities, the company has already
received first tranche Rs. 810 million in March 2013 and this is balance
tranche fund of Rs. 2430 million. With this total promoter shareholding rises
to 72.82 percent.
The funds will be utilized primarily for Business expansion and to partially
reduce debt.
Mr. Subhash Chandra, Chairman, stated, “ The Indian television distribution
industry is on the cusp of high growth value phase as it marches towards the
digitization of balance phases of cable television in the country. With the
change in leadership last year, SITI Cable has driven higher revenue and
profitability through relentless focus on operational excellence despite
uncertain environment. Our sustained investment in this sector will further
accelerate the growth momentum and will serve the Digital Cable TV viewing
needs of many more million Indians on SITI Cable Network”.
Commenting on this development, Mr. V D Wadhwa, CEO of SITI Cable said “For the
wider digitization roll out, the Company needs to invest in upgrading its
digital infrastructure further and enter into newer strategic markets. We plan
to seed over 6 million set-top-boxes in phase-3 and 4 markets through organic
and in organic growth. We believe that we are well poised to benefit from the
ongoing digitization implementation and ready to penetrate the market at a
faster rate”.
Package wise billing and collection has been initiated in its phase-1 markets.
The Company estimates that by beginning of the next quarter, the package wise
billing and the collection will be in line. The Company has made significant
progress on subscriber wise billing and collections in its phase-2 markets too.
The company is far ahead of other operators in terms of subscriber wise billing
and collection.
SITI Cable is the only vertically integrated company in the Cable TV Industry
and is known for its strong backend systems and processes. Backed by Strong
Management team, the company is always on the forefront to harness the latest
technology and maintain the healthy commercial relations with its business
partners.
SITI CABLE RECORDS REVENUE GROWTH OF 42%
AT RS.1773 MILLION
Feb 13, 2014
The Board of Directors of SITI Cable
Network Limited (SCNL) (BSE: 532795, NSE: SITI CABLE EQ) in its meeting held
today, has taken on record the unaudited consolidated financial results of the
Company and its subsidiaries for the quarter ended December 31,2013. The total
revenues for the quarter were Rs 1773 million and operating profit (EBITDA) was
Rs.350 million.
Mr. Subhash Chandra, Chairman, stated, “The ongoing Digitalization is providing
new impetus for growth and value in India though we are still early in the
value creation process. Digital Cable Television is a major engine of growth
for SITI Cable across all geographies. Our sustained investment in this segment
will further enhance customer television viewing experience”
Commenting on the performance, Mr. Chandra said, “Our results for the quarter
reflect the overall stability of our operations, and demonstrate the potential
for growth. SITI Cable is EBITDA positive in this quarter as well”.
Mr. V D Wadhwa, CEO of SITI Cable commented, “We have gained further momentum
in the third quarter of fiscal 2014. Our total revenue and EBITDA grew to Rs.
1773 million and Rs. 350 million respectively, a healthy growth of 42% and 73%
respectively over corresponding quarter of last fiscal. We have maintained our
margins through operational efficiency improvements despite stiff challenges
faced at market place on account of DAS billing. We have made the healthy
progress in collection of DAS subscription revenue which is way ahead of
competition.”
He further added, “We are now in exciting phase of our journey as we strengthen
our existing operations and expand our digital subscriber base in phase-3&4
towns. We have started digital cable services in strategic markets of
Vijayawada, Hissar and Rohtak in this quarter. We have also reinvented the
company website making it more interactive and user- friendly”.
Siti Cable Inks Rev-Share Agreements With Cable
Operators For Digitization
Oct 9th, 2012
Cable television service provider Siti Cable Network Limited has inked Digital Addressable System (DAS) Interconnect agreement
with 55% of its local cable operators (LCOs), in a bid to implement
digitization across the top metros across India. The company claims to be the only multi-system
operator (MSO) to have inked such agreements.
Siti Cable stated that this
partnership works on a revenue-sharing basis of the carriage fee and
it will allow cable operators to provide encrypted TV channel signals to
the subscriber. However, it didn’t disclose any specific revenue share
ratio or any other financial details of the agreement.
The company also claimed that it
is actively working with local cable operators to migrate them to the digital
regime smoothly and has provided them with a ‘Own Your Customer’ management
system, which allows cable operators to manage various subscriber-related
transactions on their own. These transactions include activation,
deactivation, up gradation, down gradation, billing, payment, account
statements, packaging and complaints among others. Siti Cable said that cable
operators can access this system on their computers, tablets and their mobile
phones.
Similar Developments: In
March 2012, Dish TV had partnered with around 30 local cable operators
to run a pilot project in Delhi, wherein the local cable operators acted as the
company’s agents to distribute and install DTH connections, and Dish TV paid
them commissions based on the number of new connections installed, in addition
to a 15%-20% commission whenever a customer recharges his subscription.
Digitization Status in
Metros: Last month, Ministry of Information and Broadcasting has stated that 68% Cable TV
digitization has been achieved in four metro cities, including Delhi, Mumbai,
Kolkata and Chennai, where digitization of cable TV was made mandatory by October 31, 2012. This
announcement was made by the ministry after a review of the digitization
progress in these four metros.
The ministry stated that Mumbai
had achieved the highest level of digitization among the four metros with 95%
digitization level, followed by Kolkata with 67% digitization level, Delhi with
53% digitization level and Chennai with 49% digitization level. However, it
noted that these numbers didn’t take DTH subscribers into account and if they
were considered, the ministry noted that Mumbai’s digitization level marginally
increased to 96%, while Chennai’s digitization level increased to 77% and the
digitization level of Kolkata and Delhi increased to 72% and 65% respectively.
No Deadline Extension:
Ministry’s senior officials had also added that there will be no further
deadline extension for digitization of cable TV, and claimed that the task will
be completed within the allotted time frame, with active support from all stake
holders.
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 records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered
forfeited for violation of money laundering or international anti-terrorism
laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government official
or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.48 |
|
|
1 |
Rs.100.63 |
|
Euro |
1 |
Rs.80.71 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
SNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
1 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
1 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
1 |
|
--RESERVES |
1~10 |
1 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEAFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
19 |
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.