|
|
|
MIRA INFORM REPORT
|
Report No. : |
501681 |
|
Report Date : |
04.04.2018 |
IDENTIFICATION DETAILS
|
Name : |
FOX STAR STUDIOS INDIA PRIVATE LIMITED (w.e.f. 05.02.2008) |
|
|
|
|
Formerly Known
As : |
PERSPECTIVE MEDIA PRIVTE LIMITED |
|
|
|
|
Registered
Office : |
Star House, Urmi Estate, 95 Ganpatrao Kadam Marg, Lower Parel (West),
Mumbai – 400013, Maharashtra |
|
Tel. No.: |
91-22-66305555 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2016 |
|
|
|
|
Date of
Incorporation : |
04.10.2006 |
|
|
|
|
Com. Reg. No.: |
11-165060 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
INR 265.751
Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
U92490MH2006PTC165060 |
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|
|
|
IEC No.: [Import-Export Code No.] |
0308020014 |
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|
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PAN No.: [Permanent Account No.] |
AAECP0309G |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Divulged |
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|
|
|
GSTN : [Goods & Service Tax
Registration No.] |
Not Divulged |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
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|
|
|
Line of Business
: |
Subject is principally engaged in the business of production, acquisition and distribution of movies.(Registered Activity) |
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|
|
|
No. of Employees
: |
Information denied by the management |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A+ |
|
Credit Rating |
Explanation |
Rating Comments |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
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|
Comments : |
Subject was incorporated in the year 2006, and is a step down
subsidiary of “21st Century Fox Inc., New York”. It is involved in
production and distribution of movies. There has been a significant increase in the revenue of the company in
the financial year 2016. However, it has incurred operational loss. The sound financial profile of the company is marked by adequate
networth base along with strong debt coverage indicators due to debt free
balance sheet profile. Rating derives strength from strong business and financial support
received from its parent company along with its established track record and
experience of the promoters in the industry. Payment seems to be regular. In view of aforesaid, the company can be considered good 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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
Not Available |
|
Rating |
Not Available |
|
Rating Explanation |
Not Available |
|
Date |
Not Available |
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
31-03-2016.
BIFR (Board for Industrial & Financial Reconstruction) LISTING
STATUS
Subject’s name is not listed as a Sick Unit in
the publicly available BIFR (Board for Industrial & Financial
Reconstruction) list as of 04.04.2018
IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS
Subject’s name is not listed in the publicly
available IBBI (Insolvency and Bankruptcy Board of India) list as of report
date.
INFORMATION DENIED
Management non-cooperative (Tel No.: 91-22-66305555)
LOCATIONS
|
Registered Office : |
Star House, Urmi Estate, 95 Ganpatrao Kadam Marg, Lower Parel (West),
Mumbai – 400013, Maharashtra, India |
|
Tel. No.: |
91-22-66305555/ 66305050/ 61731111 |
|
Fax No.: |
91-22-66153223/ 61732828 |
|
E-Mail : |
DIRECTORS
As on 31.03.2017
|
Name : |
Mr. Deepak Eapen Jacob |
|
Designation : |
Director |
|
Address : |
B2-1003, Uniworld City, Sector 30, Gurugram - 122009, Haryana, India |
|
Date of Birth/Age : |
18.12.1970 |
|
Date of Appointment : |
30.09.2009 |
|
DIN No.: |
01435059 |
|
|
|
|
Name : |
Mr. Amit Sudhir Shah |
|
Designation : |
Director |
|
Address : |
D/312, Upvan Towers, Upper Govind Nagar, Malad (East), Mumbai-400097, Maharashtra, India |
|
Date of Appointment : |
02.06.2016 |
|
DIN No.: |
06572744 |
|
|
|
|
Name : |
Mr. Vijay Singh |
|
Designation : |
Whole-time Director |
|
Address : |
1, Rockdale Apartments, 16, L.D. Ruparel Marg, Mumbai-400006 , Maharashtra, India |
|
Date of Appointment : |
06.06.2017 |
|
DIN No.: |
01513100 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2016
|
Names of Shareholders |
|
No. of Shares |
|
Fox Star Studios Holdings Limited, |
|
26575118 |
|
Star India Private Limited (Nominee of Fox Star Studios Holdings
Limited, Mauritius) |
|
1 |
|
Total |
|
26575119 |
Equity Share Break up (Percentage of Total Equity)
As on 30.09.2016
|
Category |
Percentage |
|
Promoters (Body corporate) |
99.99999624 |
|
Public/Other than promoters (Body corporate) |
0.00000376 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is principally engaged in the business of production, acquisition and distribution of movies.(Registered Activity) |
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Products/
Services: |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Divulged |
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Exports : |
Not Divulged |
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||||
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Imports : |
Not Divulged |
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||||
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Terms : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
Information declined by the management |
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Bankers : |
|
|
Auditors : |
|
|
Name : |
S.R. Batliboi and Associates Chartered Accountants |
|
Address : |
The Ruby, 12th Floor, 29 Senapati Bapat Marg,
Dadar (West), Mumbai – 400028, Maharashtra, India |
|
Income-tax
PAN of auditor or auditor's firm : |
ACHFS9118A |
|
|
|
|
Memberships : |
-- |
|
|
|
|
Collaborators : |
-- |
|
|
|
|
Holding Company : |
Fox Star Studios Holdings Limited |
|
|
|
|
Ultimate Holding
Company : |
21st Century Fox, Inc., US |
|
|
|
|
Fellow Subsidiary
companies : |
· Star India Private Limited · Vijay Television Private Limited · Asianet Communications Limited · TCF Distributing, Inc. · Twentieth Century Fox International Corporation |
CAPITAL STRUCTURE
As on 30.09.2016
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
30000000 |
Equity Shares |
INR 10/- each |
INR 300.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
26575119 |
Equity Shares |
INR 10/- each |
INR 265.751
Million |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in INR Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
265.751 |
178.933 |
178.933 |
|
(b) Reserves and Surplus |
4781.216 |
2634.456 |
3249.936 |
|
(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) |
5046.967 |
2813.389 |
3428.869 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long-term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
12.808 |
2.794 |
5.012 |
|
Total Non-current
Liabilities (3) |
12.808 |
2.794 |
5.012 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short-term
borrowings |
0.000 |
280.000 |
350.000 |
|
(b) Trade
payables |
175.523 |
286.451 |
53.985 |
|
(c) Other
current liabilities |
855.964 |
642.933 |
412.899 |
|
(d) Short-term
provisions |
15.532 |
13.544 |
10.137 |
|
Total Current
Liabilities (4) |
1047.019 |
1222.928 |
827.021 |
|
|
|
|
|
|
TOTAL |
6106.794 |
4039.111 |
4260.902 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
6.814 |
8.149 |
8.556 |
|
(ii)
Intangible Assets |
602.469 |
610.664 |
3563.999 |
|
(iii) Tangible assets
capital work-in-progress |
0.000 |
0.000 |
0.734 |
|
(iv)
Intangible assets under development |
2820.160 |
2626.973 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d)
Long-term loans and advances |
323.721 |
128.531 |
141.016 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
3753.164 |
3374.317 |
3714.305 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
0.000 |
0.532 |
16.631 |
|
(c) Trade
receivables |
1007.908 |
240.631 |
96.565 |
|
(d) Cash and
bank balances |
735.664 |
191.042 |
236.703 |
|
(e)
Short-term loans and advances |
174.223 |
148.041 |
76.400 |
|
(f) Other
current assets |
435.835 |
84.548 |
120.298 |
|
Total
Current Assets |
2353.630 |
664.794 |
546.597 |
|
|
|
|
|
|
TOTAL |
6106.794 |
4039.111 |
4260.902 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
|
SALES |
|
|
|
|
|
Revenue
from operations |
5582.660 |
3763.127 |
1382.350 |
|
|
Other Income |
20.117 |
2.585 |
21.117 |
|
|
TOTAL |
5602.777 |
3765.712 |
1403.467 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Employee benefit expense |
193.770 |
171.503 |
132.281 |
|
|
Other expenses |
2313.203 |
1741.762 |
524.103 |
|
|
TOTAL |
2506.973 |
1913.265 |
656.384 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
3095.804 |
1852.447 |
747.083 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
17.437 |
23.895 |
36.841 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
3078.367 |
1828.552 |
710.242 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
3214.932 |
2444.032 |
849.442 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX |
(136.565) |
(615.480) |
(139.200) |
|
|
|
|
|
|
|
Less |
TAX |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX |
(136.565) |
(615.480) |
(139.200) |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (INR) |
(5.72) |
(34.40) |
(11.24) |
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
Current Maturities of Long term debt |
NA |
NA |
NA |
|
Cash generated from operations |
NA |
NA |
NA |
|
Net cash flows from (used in) operation |
1892.576 |
2477.779 |
870.794 |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
Average Collection Days (Sundry Debtors / Income * 365 Days) |
65.90 |
23.34 |
25.50 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry
Debtors) |
5.54 |
15.64 |
14.32 |
|
|
|
|
|
|
Inventory Turnover (Operating Income
/ Inventories) |
0.00 |
3482.04 |
44.92 |
|
|
|
|
|
|
Asset Turnover (Operating Income
/ Net Fixed Assets) |
0.90 |
0.57 |
0.21 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
Debt Ratio ((Borrowing + Current Liabilities) / Total
Assets) |
0.17 |
0.30 |
0.19 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability
/ Networth) |
0.00 |
0.10 |
0.10 |
|
|
|
|
|
|
Current Liabilities to Networth (Current
Liabilities / Net Worth) |
0.21 |
0.43 |
0.24 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets
/ Networth) |
0.68 |
1.15 |
1.04 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial
Charges) |
177.54 |
77.52 |
20.28 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
Net Profit Margin ((PAT
/ Sales) * 100) |
% |
(2.45) |
(16.36) |
(10.07) |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total
Assets) * 100) |
% |
(2.24) |
(15.24) |
(3.27) |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth)
* 100) |
% |
(2.71) |
(21.88) |
(4.06) |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
Current Ratio (Current Assets / Current Liabilities) |
2.25 |
0.54 |
0.66 |
|
|
|
|
|
|
Quick Ratio ((Current Assets
– Inventories) / Current Liabilities) |
2.25 |
0.54 |
0.64 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total
Assets) |
0.83 |
0.70 |
0.80 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity
Capital) |
0.00 |
1.56 |
1.96 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current
Assets / Total Current Liabilities) |
2.25 |
0.54 |
0.66 |
Total Liability = Short-term Debt + Long-term
Debt + Current Maturities of Long-term debts
FINANCIAL ANALYSIS
[all figures are in
INR Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2014 |
31.03.2015 |
31.03.2016 |
|
|
(INR
In Million) |
(INR
In Million) |
(INR
In Million) |
|
Share Capital |
178.933 |
178.933 |
265.751 |
|
Reserves & Surplus |
3249.936 |
2634.456 |
4781.216 |
|
Net
worth |
3428.869 |
2813.389 |
5046.967 |
|
|
|
|
|
|
Long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
350.000 |
280.000 |
0.000 |
|
Total
borrowings |
350.000 |
280.000 |
0.000 |
|
Debt/Equity
ratio |
0.102 |
0.100 |
0.000 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2014 |
31.03.2015 |
31.03.2016 |
|
|
(INR
In Million) |
(INR
In Million) |
(INR
In Million) |
|
Sales |
1382.350 |
3763.127 |
5582.660 |
|
|
|
172.227 |
48.352 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2014 |
31.03.2015 |
31.03.2016 |
|
|
(INR
In Million) |
(INR
In Million) |
(INR
In Million) |
|
Sales |
1382.350 |
3763.127 |
5582.660 |
|
Profit/ (Loss) |
(139.200) |
(615.480) |
(136.565) |
|
(10.07
%) |
(16.36
%) |
(2.45
%) |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of establishment |
Yes |
|
2] |
Constitution of the entity Incorporation
details |
Yes |
|
3] |
Locality of the entity |
Yes |
|
4] |
Premises details |
No |
|
5] |
Buyer visit details |
-- |
|
6] |
Contact numbers |
Yes |
|
7] |
Name of the person contacted |
No |
|
8] |
Designation of contact person |
No |
|
9] |
Promoter’s background |
Yes |
|
10] |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11] |
Pan Card No. of Proprietor / Partners |
Yes |
|
12] |
Voter Id Card No. of Proprietor / Partners |
No |
|
13] |
Type of business |
Yes |
|
14] |
Line of Business |
Yes |
|
15] |
Export/import details (if applicable) |
No |
|
16] |
No. of employees |
No |
|
17] |
Details of sister concerns |
Yes |
|
18] |
Major suppliers |
No |
|
19] |
Major customers |
No |
|
20] |
Banking Details |
No |
|
21] |
Banking facility details |
No |
|
22] |
Conduct of the banking account |
-- |
|
23] |
Financials, if provided |
Yes |
|
24] |
Capital in the business |
Yes |
|
25] |
Last accounts filed at ROC, if applicable |
Yes |
|
26] |
Turnover of firm for last three years |
Yes |
|
27] |
Reasons for variation <> 20% |
-- |
|
28] |
Estimation for coming financial year |
No |
|
29] |
Profitability for last three years |
Yes |
|
30] |
Major shareholders, if available |
Yes |
|
31] |
External Agency Rating, if available |
No |
|
32] |
Litigations that the firm/promoter
involved in |
-- |
|
33] |
Market information |
-- |
|
34] |
Payments terms |
No |
|
35] |
Negative Reporting by Auditors in the
Annual Report |
No |
NOTE:
The Registered office of the company has been shifted from Star House, 6th Floor, Off. Dr. E. Moses Road, Mahalaxmi, Mumbai- 400011, Maharashtra, India to the present address w.e.f. 15.11.2013
OPERATIONAL REVIEW
AND STATE OF COMPANYS AFFAIRS (As on 31.03.2016)
The Company is in the business of production and distribution of movies. Fox Star also acquires and exploits rights in movies. These acquired rights are exploited worldwide and across various platforms, such as theatrical, music, home video, satellite and all other existing or yet to be created media including, but not limited to, websites, publishing, gaming and merchandising.
UNSECURED LOAN
|
PARTICULARS |
31.03.2016 (INR
in Million) |
31.03.2015 (INR
in Million) |
|
Unsecured Loan |
|
|
|
Short-term
borrowings |
|
|
|
Intercorporate borrowings |
0.000 |
280.000 |
|
Total |
0.000 |
280.000 |
INDEX
OF CHARGES: NO CHARGES EXISTS FOR COMPANY
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2016 (INR
in Million) |
31.03.2015 (INR
in Million) |
|
Other money for which company is contingently liable |
11.611 |
15.804 |
FIXED ASSETS
- Furniture and fixtures
- Office equipment
- Computer equipments
WEBSITE DETAILS
NEWS/ PRESS RELEASE
NO MOUSY DEAL:
MURDOCH’S FOX REMAINS CLEVER AS EVER IN THE DEAL WITH DISNEY
Date: 04.04.2018
The Disney-Fox tie-up
is smart because it deftly sidesteps the basic regulatory concerns.
A brief sequence in a 1998 episode of The Simpsons showed 20th Century Fox – the US cinema studio owned by Rupert Murdoch – being taken over by Disney, the quintessential American media company. Last month’s announcement about Disney acquiring the movie and TV properties of Murdoch’s 21st Century Fox demonstrated the enviable record of The Simpsons in predicting landmark events. The reportage on the deal has been mostly anxious and alarmist (and occasionally) optimistic, with much focus on the future of entertainment.
However, not enough credit has been given to the fact that this deal, now awaiting regulatory approval, is unusual but smart.
It is unusual because so far, major deals in the US media have involved content-producing majors, themselves a product of mergers between erstwhile TV and cinema giants, coming together with broadcasting or carriage majors. In the last decade, we saw NBC Universal merging with the cable giant Comcast and the venerable Time Warner announcing its acquisition by the grand old telecommunication company, AT&T.
Contrasting such vertical accumulation, the Disney-Fox deal involves two content majors (though Fox also has stakes in key distribution companies in Europe and India). Fox is giving up their movies and TV production studios, cable channels including National Geographic as well as its existing stake in European satellite broadcaster Sky and India’s STAR broadcast network. But it retains Fox News, the Fox broadcast network, Fox Sports, Fox Business and regional TV stations in the US. In other words, the Disney-Fox case is a horizontal merger.
Precisely because of this, it is likely to arouse close regulatory attention because horizontal accumulation, which reduces the number of market players, directly impacts competition. Even in the free-market United States of America, such deals are subject to a series of evidence-based regulatory approvals, taking anywhere between 10 to 15 months. For instance, approval of the last mega-acquisition in the US media business – Time Warner by AT&T – that was announced in October 2016 is still pending.
Regulatory scrutiny particularly looks into risks of market power emerging from such mega megers and acquisitions, since these directly impact citizens, competitors, and the public exchequer.
Wily as ever
The Disney-Fox deal is smart because it deftly sidesteps the basic regulatory concerns.
The immediate anxiety arises because one of the Big Six studios of Hollywood is effectively being gobbled up by another. No doubt this will enhance market power in the cinema business. The combined Disney-Fox entity could account for almost 40% of the box offices in the US and the United Kingdom – one reason why this deal will be scrutinised by regulators in both countries. However, if the US government is to block this deal, it will have to unequivocally demonstrate a gamut of realistic threats arising from such prospective market concentration.
Unlike the cinema business, which is largely subjected to ex-post regulation in the US (based on results and not forecasts) the TV and cable businesses are replete with ex-ante regulation. Anti-competitive protocols are strong in the TV business, courtesy the Federal Communications Commission – the country’s primary authority for regulating interstate and international communications by radio, television, wire, satellite and cable – which lays out that no company can own more than one of the major broadcast networks (Disney owns ABC while Murdoch has Fox News). By not selling its US broadcast assets like Fox News and Fox Sports to Disney, Fox has neatly sidestepped expressly palpable objections by the Federal Communications Commission.
In hiving off its cinema as well as TV production studios to Disney, Fox puts the onus on the deal’s likely critics to impeccably demonstrate any possible adverse impact on the business milieu and on public interest. The US government and media advocacy groups will have to convincingly show the enlarged movie-making assets of Disney being a threat to competition in the cinema industry. Even more arduous to prove will be the rise in overall media concentration as a result of Disney controlling a wide corpus of non-news content across cinema and TV.
In the UK, which has stronger cross-media ownership protocols than USA and where Murdoch has more newspapers, the Fox CEO seeks to pacify regulators by parceling out Fox’s share in Sky to Disney. Doing so will help Murdoch show his primary media assets are limited to newspapers, thus puncturing arguments of owning key assets across media sectors.
No timid retreat
The deal is smart beyond deft regulatory management. Far from being a timid retreat by Fox, it suggests a timely and tactical reorientation.
First, this deal allows Murdoch to focus on his core passion: news. In the Disney-Fox deal, the (predominantly American) TV news properties were retained by Murdoch’s company, and rightly so, because despite the globally fragile health of the news business over the last decade, Fox News was the undivided Fox’s biggest profit-driver. Along with Fox Sports, it is estimated to contribute to 76% revenues of the properties left out of the Disney deal.
Second, these properties are set to be combined with News Corp, the predominantly print media division of Murdoch’s global empire. This suggests he has chosen to retain and synergise assets that bring revenues and political influence in all conditions, shedding those yielding profit under oligopolist conditions. With such synergies, a more lean Murdoch looks to be preparing for another avatar in the global news business.
Third, combining a company twice its sixe gives Fox shareholders, which include the Murdoch family, a roughly 25% stake in the enlarged Disney. The Murdoch family trust is expected to become one of the largest shareholders (around 5%) in what will be the biggest and most globalised entertainment media conglomerate. It may be hard to visualise, but the fox has neatly ensconced itself in the belly of the mouse.
WALT DISNEY BUYS 21ST
CENTURY FOX: WHAT IT MEANS FOR STAR INDIA
Date: 15.12.2017
The Walt Disney Company's $52.4 billion acquisition of 21st Century Fox's film and entertainment business is its biggest and most expensive deal so far. With this deal The Walt Disney Company will inarguably be the most formidable media conglomerate in the world.
Just imagine, apart from Marvel and Pixar, popular franchises such as Avatar, Deadpool and The Fantastic Four, as well as popular televsion series such as The Americans, Modern Family, will all come under the Disney fold.
Cut to India, this acquisition will enable The Walt Disney Company to make a strong comeback into the Indian market as a full-fledged media entity, as it now will be the owner of the INR 10000-odd crore media mammoth, Star India.
Disney, as it is well known, has for long nourished aspirations to make it big in India, but hasnt been too successful. Its first attempt was through a partnership with Lalit Modi in the nineties and the more recent one being the INR 20000.000 million acquisition of Ronnie Screwvala's UTV in 2012, which it wrote off last year. All that Disney has in India is a INR 100-odd crore broadcast and licensing and merchandising business.
Not only will Disney now own the entire broadcast business of Star India, National Geographic and TataSky, it will also make a comeback into film production which it unceremoniously exited last year through Fox Star Studios.
Though Disney will be the new owner of Star India, experts say that Star's disproportionately high stake in India will place it in a far more dominant position than Disney India. "The Star team will have the final say in everything," points out a senior media professional. In fact, Star India's head honcho, Uday Shankar, was recently elevated as Asia-Pacific head of 21st Century Fox. "This was the first indication of the imminent merger as Disney would have wanted to Uday to spearhead the Asia-Pacific operations," says a Star India insider.
"We will witness the creation of a media and entertainment behemoth like never before. This acquisition will create a portfolio of consumer offerings that will be diversified, compelling and far reaching," says Vikram Malhotra, Founder, Abundantia Entertainment.
Star India has over 50 broadcast channels in India straddling across Hindi, English and vernacular languages, as well as the largest OTT platform, Hotstar, Fox Star Studios as well as DTH platform, TataSky. On the other hand, Disney in India has kids broadcast channels, youth channels and a licensing and merchandise business.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No 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
|
INR |
|
US Dollar |
1 |
INR 65.02 |
|
UK Pound |
1 |
INR 91.46 |
|
Euro |
1 |
INR 80.09 |
INFORMATION DETAILS
|
Information
Gathered by : |
SUP |
|
|
|
|
Analysis Done by
: |
PRI |
|
|
|
|
Report Prepared
by : |
JYTK |
SCORE FACTORS
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.