MIRA INFORM REPORT
|
Report Date : |
18.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
MPS LIMITED |
|
|
|
|
Registered
Office : |
RR Tower IV, Super A16/17, Thiru-VI-KA, Industrial Estate, Guindy,
Chennai – 600032, Tamilnadu |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
19.01.1970 |
|
|
|
|
Com. Reg. No.: |
18-005795 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.168.227 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L22122TN1970PLC005795 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Subject
is engaged in the business of Providing Publishing Solutions. |
|
|
|
|
No. of Employees
: |
2535 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
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 |
|
Maximum Credit Limit : |
USD 3705000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having good track record. Financial position of the company is sound. Fundamentals of the
company are healthy. Trade relations are reported as fair. Business is active. Payments
terms are reported to be regular and as per commitment. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
Verdict Implications
: Apex court order may alter coal import dynamics. Traders go slow on talks
over coal supply contracts, uncertainty over cancellation of blocks weigh on
stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs
arm that ensures that companies file all the information required by the
Companies Act is the latest manifestation of a messy fight between a father and
his adopted son for the control of Rs 40000 mn business empire. The Central
Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10
lakhs as bribe from M A M Ramaswamy, a CBI official said.
Central Bureau of
Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.
Infosys maintains
revenue guidance. COO Rao says attrition still an area of concern and it would
take a few more quarters to bring down levels to 13-15 %.
DHL to invest
Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its
e-commerce business model for the Asia-Pacific region.
Blackstone may buy
stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated
losses, recently approached the Delhi high court for relief in two separate
cases. The airline challenged a notice by Punjab & National Bank alleging
that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to
comply with the requirements under the listing agreements with the Stock
Exchanges.
OnMobile likely to
sack another 300 employees. The lay-offs follow a spate of senior-level exits
over the past two years, starting with of its founder. The overall lay-offs
could number around 600 and are driven by the need to cut costs, says a former
employee.
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 DENIED
MANAGEMENT NON CO-OPERATIVE (91-44-49162222)
LOCATIONS
|
Registered Office : |
RR Tower IV, Super A16/17, Thiru-VI-KA, Industrial Estate, Guindy,
Chennai – 600032, Tamilnadu, India |
|
Tel. No. : |
91-44-49162222 |
|
Fax No. : |
91-44-49162225 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
C 35, Sector 62, Noida - 201307, Uttar Pradesh, India |
|
|
|
|
Overseas Office : |
810, SE, Sherman Suite B, Portland, OR 97214, USA |
|
|
|
|
Branch Office : |
Located At:
|
DIRECTORS
As on 31.03.2014
|
Name : |
Mr
Nishith Arora |
|
Designation : |
Chairman and managing Director |
|
Qualification : |
B.A.
(Hons) Economics, Delhi university, PGDM, IIM Ahmedabad. Also completed the
3-year Owner President Management program at Harvard Business School in 2009. |
|
Date of Appointment : |
07.12.2011 |
|
Other Directorship: |
|
|
|
|
|
Name : |
Mr
D E Udwadia |
|
Designation : |
Vice Chairman and Independent Director |
|
Date of Appointment : |
29.11.1994 |
|
|
|
|
Name : |
Mr
Ashish Dalal |
|
Designation : |
Independent Director |
|
Qualification : |
Fellow member of Institute of Chartered Accountants
of India. |
|
Date of Appointment : |
29.10.2010 |
|
|
|
|
Name : |
Mr
Vijay Sood |
|
Designation : |
Independent Director |
|
Qualification : |
B.A. (Hons) Economics, Delhi university, PGDM, IIM Ahmedabad, Associate Member, Institute of Cost Accountants of India, AMP, The Wharton School |
|
Date of Appointment : |
17.10.2012 |
|
|
|
|
Name : |
Mr
Rahul Arora |
|
Designation : |
Chief Marketing Officer and Whole Time Director |
|
Qualification : |
BS, PGDBM (Indian School of Business) |
|
Date of Appointment : |
12.08.2013 |
KEY EXECUTIVES
|
Name : |
Mr Supriya Kumar Guha |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr Sunit Malhotra |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2014
|
Category of
Shareholder |
Total No. of Shares |
% of Total No. of Shares |
|
(A) Shareholding of Promoter
and Promoter Group |
||
|
|
|
|
|
|
12616996 |
75.00 |
|
|
12616996 |
75.00 |
|
|
|
|
|
Total shareholding of Promoter
and Promoter Group (A) |
12616996 |
75.00 |
|
(B) Public Shareholding |
||
|
|
|
|
|
|
11705 |
0.07 |
|
|
10883 |
0.06 |
|
|
22588 |
0.13 |
|
|
|
|
|
|
421130 |
2.50 |
|
|
|
|
|
|
2155473 |
12.81 |
|
|
1058884 |
6.29 |
|
|
547597 |
3.26 |
|
|
18078 |
0.11 |
|
|
350208 |
2.08 |
|
|
169558 |
1.01 |
|
|
9732 |
0.06 |
|
|
21 |
0.00 |
|
|
4183084 |
24.87 |
|
Total Public shareholding (B) |
4205672 |
25.00 |
|
Total (A)+(B) |
16822668 |
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) |
16822668 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject
is engaged in the business of Providing Publishing Solutions. |
GENERAL INFORMATION
|
No. of Employees : |
2535 (Approximately) |
|||||||||||||||
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Bankers : |
|
|||||||||||||||
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|
|||||||||||||||
|
Facilities : |
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Messrs Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Deloitte
Centre, Anchorage II 100/2, Richmond Road, Bangalore - 560025, Karnataka,
India |
|
|
|
|
Holding Company : |
ADI BPO Services Limited |
|
|
|
|
Subsidiary Company (w.e.f.
29-May-2013) : |
MPS North America LLC. |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
16822668 |
Equity Shares |
Rs.10/- each |
Rs.168.227 Millions |
|
|
|
|
|
NOTES:
- Reconciliation of the number of shares and amount outstanding at the
beginning and at the end of the reporting period:
|
Particulars |
31.03.2014 |
|
|
Equity shares (with
voting rights) |
Number of
Shares |
Rs. In Millions |
|
At the beginning of the year |
16822668 |
168.227 |
|
Add: Fresh issue/buyback of shares |
-- |
-- |
|
At the end of the year |
16822668 |
168.227 |
- Terms/rights
attached to equity shares
The Company has only one class of equity shares having a par value of INR 10/ 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 any of the remaining assets of the Company, after distribution of all preferential amount. The distribution will be in proportion to number of equity shares held by the shareholders.
- Details of
shares held by the holding company, the ultimate holding company, their
subsidiaries and associates: Equity shares with voting rights
|
Particulars |
Number of
shares |
|
|
|
|
ADI BPO Services Limited, the holding company |
12616996 |
|
|
|
- Details of
shares held by each shareholder holding more than 5% shares:
|
Particulars |
31.03.2014 |
|
|
Class of shares /
Name of shareholder |
Number of
Shares |
% holding in
that class of shares |
|
Equity shares ADI BPO Services Limited |
12616996 |
75.% |
|
|
|
|
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 |
168.227 |
168.227 |
168.227 |
|
(b) Reserves & Surplus |
758.094 |
658.238 |
534.854 |
|
(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) |
926.321 |
826.465 |
703.081 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
0.180 |
1.245 |
5.088 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.864 |
|
(c) Other long term
liabilities |
0.742 |
0.910 |
13.356 |
|
(d) long-term
provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
0.922 |
2.155 |
19.308 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
36.269 |
44.074 |
44.074 |
|
(b) Trade
payables |
143.810 |
194.832 |
156.484 |
|
(c) Other
current liabilities |
52.160 |
89.563 |
40.803 |
|
(d) Short-term
provisions |
10.942 |
1.680 |
76.538 |
|
Total Current
Liabilities (4) |
243.181 |
330.149 |
317.899 |
|
|
|
|
|
|
TOTAL |
1170.424 |
1158.769 |
1040.288 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
174.221 |
190.077 |
218.820 |
|
(ii)
Intangible Assets |
14.578 |
27.580 |
46.199 |
|
(iii)
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
104.724 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
5.630 |
6.599 |
0.000 |
|
(d) Long-term Loan and Advances |
207.871 |
179.841 |
146.496 |
|
(e) Other
Non-current assets |
1.435 |
1.734 |
2.031 |
|
Total Non-Current
Assets |
508.459 |
405.831 |
413.546 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
175.407 |
177.312 |
122.019 |
|
(b)
Inventories |
78.279 |
88.955 |
92.495 |
|
(c) Trade
receivables |
288.163 |
298.008 |
242.353 |
|
(d) Cash
and cash equivalents |
97.458 |
111.039 |
89.310 |
|
(e)
Short-term loans and advances |
22.378 |
65.737 |
80.466 |
|
(f) Other
current assets |
0.280 |
11.887 |
0.099 |
|
Total
Current Assets |
661.965 |
752.938 |
626.742 |
|
|
|
|
|
|
TOTAL |
1170.424 |
1158.769 |
1040.288 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1882.921 |
1639.959 |
1910.079 |
|
|
|
Other Income |
66.660 |
49.780 |
67.226 |
|
|
|
TOTAL |
1949.581 |
1689.739 |
1977.305 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
10.676 |
3.540 |
19.971 |
|
|
|
Employees benefits expense |
780.654 |
771.243 |
1068.656 |
|
|
|
Other expenses |
444.428 |
436.001 |
623.317 |
|
|
|
TOTAL |
1235.758 |
1210.784 |
1711.944 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
713.823 |
478.955 |
265.361 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
3.843 |
5.877 |
12.999 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
709.980 |
473.078 |
252.362 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
50.522 |
73.617 |
106.810 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
659.458 |
399.461 |
145.552 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
225.014 |
80.556 |
36.839 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
434.444 |
318.905 |
108.713 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
615.478 |
523.983 |
504.347 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
43.444 |
31.890 |
10.871 |
|
|
|
Dividend |
285.985 |
168.228 |
67.290 |
|
|
|
Tax on Dividend |
48.603 |
27.292 |
10.916 |
|
|
BALANCE CARRIED
TO THE B/S |
671.890 |
615.478 |
523.983 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
25.82 |
18.96 |
6.46 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
22.28 |
18.87 |
5.50 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
35.02 |
24.36 |
7.62 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
62.21 |
34.67 |
13.99 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.71 |
0.48 |
0.21 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.04 |
0.05 |
0.07 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.72 |
2.28 |
1.97 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Share Capital |
168.227 |
168.227 |
168.227 |
|
Reserves & Surplus |
534.854 |
658.238 |
758.094 |
|
Net worth |
703.081 |
826.465 |
926.321 |
|
|
|
|
|
|
long-term borrowings |
5.088 |
1.245 |
0.180 |
|
Short term borrowings |
44.074 |
44.074 |
36.269 |
|
Total borrowings |
49.162 |
45.319 |
36.449 |
|
Debt/Equity ratio |
0.070 |
0.055 |
0.039 |
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) |
|
Revenue from operations |
1910.079 |
1639.959 |
1882.921 |
|
|
|
(14.142) |
14.815 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Revenue from operations |
1910.079 |
1639.959 |
1882.921 |
|
Profit |
108.713 |
318.905 |
434.444 |
|
|
5.69% |
19.45% |
23.07% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
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 |
No |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
No |
UNSECURED LOANS
|
PARTICULAR |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
SHORT TERM
BORROWINGS |
|
|
|
Unsecured loans |
36.269 |
44.074 |
|
|
|
|
|
Total |
36.269 |
44.074 |
PROGRESS OF
THE BUSINESS
Revenue from Operations for the year ended March 31, 2014 was Rs 1882.900 millions as against Rs 1640.000 millions for the previous year. The Profit after Tax was Rs. 434.400 millions and EPS Rs 25.82 as against Rs 318.900 millions and Rs. 18.96 per share respectively for the previous year ended March 31, 2013.
The Company’s effort to expand operations in Tier II cities continued during the year that resulted in achieving lower staff costs. Strong focus remained on cost optimization with low value added work being outsourced. Company’s marketing operations were further strengthened with the induction of senior resource for customer relationship management. Price pressure on sales continued during the year though it was partly compensated by higher volume from the customers.
During the year the Company through its subsidiary MPS North America LLC acquired the assets of Element LLC through a court approved process. This acquisition has now given the Company a foothold in full-service editorial, design and production services to the educational publishing market with expertise in developing turn-key solutions for print and online products and developing content and products for learners of all ages in a broad range of curriculum and subject, with specialization in pre-kindergarten and Kindergarten to Standard XII market sectors. The business so acquired will enhance the Company’s presence in the US educational publishing market.
OUTLOOK
The Company has embarked on expanding its client base by strengthening the marketing organization to meet the changing marketing dynamics. While economies will be sought by major clients, an emphasis on improving operating efficiencies, automating processes for higher productivity and close customer interface for volume growth is likely to offset their impact on the company’s financial performance. The challenge as always will be to increase the top line in foreign currency terms.
As publishers continue to evolve their digital strategy, the Company is in a good position to exploit the upside in digital business and barring unforeseen circumstances, will be able to cater to the entire value chain of the publishing services domain. The Company is well positioned to provide flexibility to clients to select upstream and downstream services from existing service relationship. Detailed analysis, discussion, and progress reports are available in the Management Discussion and Analysis.
BACKGROUND
The company is engaged in
the business of providing publishing solutions viz., type setting and data digitization
services for overseas publishers and supports international publishers through
every stage of the author-to-reader publishing process and provides a
digital-first strategy for publishers across content production, enhancement
and transformation, delivery and customer support. This digital focus spans
across STM/academic, higher education, trade and directory markets.
The Company offers a
diverse geographic spread with production facilities registered under the
Software Technology Park of India (STPI) scheme in Chennai, New Delhi, Gurgaon
and Bengaluru. The Company also operates with other production facilities in
Dehradun, Noida and editorial and marketing offices in United States and United
Kingdom.
During the year, the
Company has incorporated a wholly owned subsidiary namely MPS North America LLC
(MPS NA LLC) on 29 May 2013, as a Limited Liability Company under the laws of
the State of Florida in the United States of America.
MANAGEMENT DISCUSSION
& ANALYSIS
INDUSTRY STRUCTURE
AND BUSINESS DEVELOPMENT
As per industry estimates,
the global publishing industry is an over USD 400 billion market with a growing
digital segment. Traditionally, it has been dominated by a few large players but
due to ease of market and lack of entry barriers, the market is fragmented with
mix of large players and small companies. The publishing market is a stable
market with ~2-3% growth p.a. even in recessionary times.
With the rapidly changing
publishing industry, publishers are leveraging on technology across the entire
value chain from content production to distribution to reduce costs and time.
New technological changes will require companies to shift from pure services to
technology services to meet the growing demand of publishers.
In recent times,
relationships have changed between publishers and service providers from being
a client-vendor to more of a strategic relationship. Publishers treat their
relationship with companies like MPS as strategic and expect a deep involvement
from the company while consolidating the number of suppliers they work with.
MPS Limited in turn has been leveraging its platform-based approach while
providing ready to market solutions to publishers for faster time to market and
to help manage content across multiple platforms and devices.
Geography-wise, USA and UK
continue to be the MPS Limited’s biggest markets and the company’s marketing
strategy is to build on relationships with customers. MPS Limited participates
in several trade shows and conferences across the globe to increase its global
footprint and raise its brand awareness through advertisements in trade
magazines and presentations at various trade shows. Mobiles and tablets
continue to become faster and smarter with device makers releasing new devices
frequently. This has accelerated the growth of the mobile applications market.
MPS Limited has a vast technological capability in this sphere and can create
mobile applications for all popular platforms and devices.
Overall, MPS Limited
provides end to end print and digital publishing solutions to its partners
across the entire value chain from content production, enhancement and
transformation to delivery and customer support, making it a trusted partner to
the biggest publishers in the world.
OUTLOOK
The publishing
industry is settling down into the new market dynamics after the rapid changes
of the last couple of years. Technology is playing a big role in publishing now
as content becomes better organized as well as liberated. The Company’s
increased focus on developing high-end and strategic technology solutions speak
about the Company’s endeavor to be ahead of competition. Workflow management
solutions and end-to-end services are the emerging requirements of the market
and MPS Limited is well poised to take advantage of this since publishers
prefer to work with a smaller base of strategic partners like MPS Limited.
FIXED ASSETS
œ Land
œ Buildings
œ Plant & Machinery
œ Furniture and Fixtures
œ Vehicles
œ Leasehold
improvements
UNAUDITED
RESULTS FOR THE QUARTER AND ENDED ON 30TH JUNE, 2014
(Rs. In Millions)
|
|
|
Particulars |
Quarter
ended 30.06.2014 |
|
1 |
Income from Operations |
|
|
|
|
a) Net Sales/Income from Operations (net of excise duty) |
452.200 |
|
|
|
b) Other Operating Income |
-- |
|
|
|
Total Income from Operations (Net) |
452.200 |
|
|
2 |
Expenses |
|
|
|
|
a) |
Cost of Materials consumed |
-- |
|
|
b) |
Purchase of stock in-trade |
-- |
|
|
c) |
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
(7.500) |
|
|
d) |
Employee benefit expenses |
213.300 |
|
|
e) |
Depreciation and amortization expense |
15.100 |
|
|
f) |
Foreign Exchange (Gain) / Loss |
(27.800) |
|
|
g) |
Other
expenses |
98.700 |
|
|
Total Expenses |
291.800 |
|
|
3 |
|
Profit /(Loss)
from operations before other income, finance costs and exceptional items
(1-2) |
160.400 |
|
4 |
Other
Income |
11.400 |
|
|
5 |
|
Profit
/(Loss) from ordinary activities before finance costs and exceptional items
(3+4) |
171.800 |
|
6 |
Finance Costs |
0.200 |
|
|
7 |
|
Profit
/(Loss) from ordinary activities after finance costs but before exceptional
items (5-6) |
171.600 |
|
8 |
Exceptional
Items |
77.200 |
|
|
9 |
Profit /(Loss) from ordinary activities
before tax |
248.800 |
|
|
10 |
Tax
Expense |
86.100 |
|
|
11 |
Net Profit /(Loss) from ordinary activities
after tax (9-10) |
162.700 |
|
|
12 |
Extraordinary
items (net of tax expense) |
-- |
|
|
13 |
Net Profit /(Loss) for the period (11-12) |
162.700 |
|
|
14 |
Paid up
equity share capital (Eq. shares of
Rs.10/- each) |
18.200 |
|
|
15 |
Reserve
excluding revaluation reserves |
|
|
|
16 |
|
Earnings
per share (before/after extraordinary items) of Rs.10/- each |
|
|
|
|
Basic |
9.67 |
|
|
|
Diluted |
9.67 |
|
A |
|
PARTICULARS
OF SHAREHOLDING |
|
|
1 |
|
Public Shareholding |
|
|
|
|
- No. of
Shares |
4205672 |
|
|
|
-
Percentage of Shareholding |
25.00% |
|
2 |
|
Promoters and promoter group shareholding |
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
- Number
of shares |
-- |
|
|
|
- Percentage
of shares ( as a % of the total shareholding of the promoter and promoter
group) |
-- |
|
|
|
-
Percentage of shares (as a % of the total share capital of the Company) |
-- |
|
|
|
b) Non-
encumbered |
|
|
|
|
- Number
of shares |
12616996 |
|
|
|
-
Percentage of shares ( as a % of the total shareholding of the promoter and
promoter group) |
100.00% |
|
|
|
-
Percentage of shares (as a % of the total share capital of the Company) |
75.00% |
|
|
Particulars |
Quarter
ended 30.06.2014 |
|
|
B |
|
Investor
Complaints |
|
|
|
|
Pending at
the beginning of the quarter |
Nil |
|
|
|
Received
during the quarter |
Nil |
|
|
|
Disposed
during the quarter |
Nil |
|
|
|
Remaining
unresolved at the end of the quarter |
Nil |
NOTES:
- The Financial Results were reviewed by the Audit Committee and upon their recommendation, approved by the Board of Directors at their meeting held on August 08, 2014. The Statutory Auditors have carried out a Limited Review of the above financial results of the Company.
- The figures for the three months ended March 31, 2014 are the balancing figures between audited figures in respect of the full financial year and the published year to date figures up to preceding quarter of the relevant financial year.
- The Company operates in a single segment, "the business of providing publishing solutions viz., typesetting and data digitization services".
- The Company has revised its policy of providing depreciation on fixed assets effective April 01, 2014. Depreciation is now provided on Straight Line basis for all assets as against the policy of providing on Written Down Value basis for some assets and Straight Line basis for others. As a result of these changes, the depreciation charged for Quarter ended June 30, 2014 is higher by Rs 6.200 millions and the effect relating to period prior to April 01, 2014 is credit of Rs.77.200 millions which has been shown as an "Exceptional Item" in the above statement. Deferred Tax of Rs.26.200 millions on this credit is included in Tax expense.
- The Useful life of Fixed Assets have been revised in accordance with Schedule II to the Companies Act, 2013 which is applicable from accounting periods commencing on or after April 01, 2014. Further, the remaining useful lives have also been revised wherever appropriate based on an evaluation. Accordingly, an amount of Rs 16.800 millions (excluding Deferred Tax of Rs 8.700 millions) representing assets beyond their useful lives as on April 01, 2014 will be adjusted to the General Reserve.
- Figures for the previous period(s) /years have been regrouped/recast where necessary.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.62 |
|
|
1 |
Rs.99.12 |
|
Euro |
1 |
Rs.78.89 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
ANK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
NO |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
64 |
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.