Download - Nomad Films Limited Final

BUSINESS SCOPE REPORT

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insurance, marketing or other business decisions, contains information compiled from sources which Dun & Bradstreet does not control and whose information, unless otherwise indicated in the report, has not been verified. Dun & Bradstreet in no way assumes any part of the user’s business risk, does not guarantee the accuracy, completeness, or timeliness of the information provided, and

shall not be liable for any loss or injury whatsoever resulting from contingencies beyond its control or from negligence.

NOMAD FILMS LIMITED

D&B D-U-N-S® NUMBER: 65-049-4029

Dun & Bradstreet Information Services India Pvt. Ltd.

ICC Chambers

Saki Vihar Road

Powai, Mumbai - 400072

Maharashtra

India

Tel: + 91-22-28574190 / 92 / 94

Fax: + 91-22-28572060


Nomad Films Limited 1

Scope of the Report

• History and legal background

• Existing operations

• Management background

• Bankers

• Financial statements and analysis

Information Sources

• Annual reports

• Company website

Methodology

Financial information from the audited annual reports of the Company was studied and analyzed for a

three year period.

Date: 29th

September 2010.



TABLE OF CONTENTS

SUMMARY .............................................................................................................................................................. 4

LINE OF BUSINESS............................................................................................................................................... 5

CURRENT INVESTIGATION .............................................................................................................................. 6

COMPANY PROFILE ............................................................................................................................................ 7

FINANCIAL SNAPSHOT ...................................................................................................................................... 8

PROVISIONAL FINANCIAL PERFORMANCE ............................................................................................... 9

REVENUE ............................................................................................................................................................. 10

CUSTOMERS ........................................................................................................................................................ 10

FOREIGN EXCHANGE TRANSACTIONS ...................................................................................................... 11

SUPPLIERS ........................................................................................................................................................... 11

EMPLOYEES ........................................................................................................................................................ 11

REGISTRATION DETAILS ................................................................................................................................ 12

CAPITAL DETAILS ............................................................................................................................................. 12

SHAREHOLDING PATTERN ............................................................................................................................ 13

AUDITORS ............................................................................................................................................................ 13

CORPORATE DIRECTORS ............................................................................................................................... 14

EXECUTIVES ....................................................................................................................................................... 14

HEAD OFFICE LOCATION DETAILS ............................................................................................................ 16

PREVIOUS ADDRESS ......................................................................................................................................... 16

GROUP ENTITY .................................................................................................................................................. 17

REGISTRATION .................................................................................................................................................. 18

MEMBERSHIPS ................................................................................................................................................... 18

AWARDS / CERTIFICATIONS .......................................................................................................................... 18



FINANCIAL ANALYSIS ..................................................................................................................................... 19

SWOT ..................................................................................................................................................................... 26

ANNEXURE I - CORPORATE DIRECTORS .................................................................................................. 28

ANNEXURE II - FINANCIAL STATEMENTS ................................................................................................ 30



SUMMARY

-----------------------------------------------------------------------------------------------------------------------------

D&B D-U-N-S® NUMBER : 65-049-4029

COMPANY NAME : NOMAD FILMS LIMITED

ADDRESS : A-301/302, Poseidon Tower

Panch Marg, Off Yari Road

Versova, Andheri West

Mumbai - 400061

Maharashtra

India

TELEPHONE : (91) (022) (26302080)

(91) (022) (26321649)

FAX : (91) (022) (26321649)

WEB PAGE : www.nomadfilmsindia.com

EMAIL : [email protected]

[email protected]

[email protected]

-----------------------------------------------------------------------------------------------------------------------------

D&B RATING: 2A2 CONDITION: GOOD

-----------------------------------------------------------------------------------------------------------------------------

REGISTRATION NUMBER : 172984

START DATE : 4th April 2003

CONTROL DATE : 9th August 2007

HISTORY : Clear

EMPLOYEES (TOTAL) : 15

EXPORTS : Yes

REVENUE : INR 150,698 Thousand for the year ended 31st March 2010

TANGIBLE NETWORTH : INR 15,098 Thousand as on 31st March 2010

AUTHORIZED CAPITAL : INR 150,000 Thousand as on 31st March 2010

ISSUED CAPITAL : INR 2,125 Thousand as on 31st March 2010

PAID-UP CAPITAL : INR 2,125 Thousand as on 31st March 2010

-----------------------------------------------------------------------------------------------------------------------------

CHIEF EXECUTIVE : Junaid Abdulrazak Memon

Director

-----------------------------------------------------------------------------------------------------------------------------



LINE OF BUSINESS

-----------------------------------------------------------------------------------------------------------------------------

The Company is engaged in advertising business. It is also engaged in production of television

commercials, feature films and television serials. It recently started event management also.

Standard Industrial Classification Code (SIC)

7812-9903

Produces commercials, television: tape or film

7812-0110

Engaged in television film production

7319-0000

Engaged in advertising

RATING KEY

---------------------------------------------------------------------------------------------------------------------------

D&B’s Rating consists of 2 parts, the Financial Strength and the Composite Appraisal / Condition.

Financial Strength is an indication of the tangible networth (that is, the shareholder’s funds less any

intangible assets). The Composite Appraisal / Condition is linked to the level of risk and is an overall

evaluation of credit worthiness. It takes into account the financial condition and several factors such as

trade reference history, legal structure, management experience and any adverse listings.

D&B Indicative Risk Rating of 2A2 implies that the subject has a tangible networth between INR

12,919,000 and INR 64,594,999 as per latest available audited financial statements. Composite

appraisal 2 indicates that the overall status of the subject is good.

Risk

Indicator Level of Risk Guide to Interpretation

1 Minimal risk May proceed with transaction - offer extended

terms if required

2 Low risk May proceed with transaction

3 Slightly greater than average risk May proceed with transaction but monitor closely

4 Significant level of risk May take suitable assurance before extending

credit - e.g. personal guarantees

- Insufficient information to assign a

Rating

No public information or D&B proprietory

information available to indicate trading activity



CURRENT INVESTIGATION

-----------------------------------------------------------------------------------------------------------------------------

On 20th April 2010, Mr. Junaid Abdulrazak Memon, Director, provided the relevant information.

Additional information was provided during management discussion.



COMPANY PROFILE

-----------------------------------------------------------------------------------------------------------------------------

Nomad Films Limited (hereinafter referred to as “the Subject” or “the Company”) was established in

the year 2002 as a partnership firm by Mr. Junaid Abdulrazak Memon and Mr. Amitabh Bhattacharya.

On 9th August 2007, a private limited company was formed to take over the operations of the

partnership firm and name changed to Nomad Films Private Limited. It was later converted to a public

limited company on 29th September 2009.


commercials, feature films and television serials. It recently started event management also. It

conceptualizes as well as executes the events.

The Company earns major revenue from its advertising business. Some of the television commercials

produced by the Company includes brands like MetLife-New York, P&G, Reliance ADAG, Henkel,

Wrigleys, Coca Cola, Adani Group, Samsung, Pepsi, Volkswagen, Life Insurance Corporation, State

Bank of India, etc.

It works with following agencies:

• Ogilvy and Mather, United States of America

• James Walter Thompson, United States of America

• Young and Rubicam, United States of America

• TBWA Worldwide, United States of America

• Mudra Communication Private Limited

It represents many international production houses like Eallin Animation, Prague, Arithmetic in

respective countries for relevant assignments.

The Company is headquartered at Mumbai.

The Company’s has sister concerns Guava Creative Solutions Private Limited, Nomad Events Private

Limited, Nomad Telefilms Private Limited and Nomad Studios Private Limited are also engaged in the

similar businesses.

The Company plans to diversify into the production of TV programs and Documentary Films related to

Government sector. It has already applied for this project. It is also planning to enter into broadcasting

of non News Channel for which it has already applied for the broadcasting license. It will be funding all

these projects through bank loans and private equity. It also has plans to expand the business to other

foreign countries. The Company is expecting major revenue growth on execution of these projects.



FINANCIAL SNAPSHOT

Comparative Figures (INR in Thousand)

FY 2008 FY 2009 FY 2010

Revenue 58,975 51,643 150,698

Net Profit after Tax 2,897 1,130 11,413

Current Assets 30,725 33,732 51,610

Current Liabilities 35,751 43,242 35,937

Working Capital (5,026) (9,510) 15,673

Other Tangible Assets 28,920 28,365 699

Non-Current Liabilities 21,293 15,479 1,274

Tangible Networth 2,601 3,376 15,098

Total Borrowings 23,254 16,508 1,250

Cash and Bank 579 4,647 11,971

Accounts Receivable 10,986 6,450 12,177

Fixed Assets 28,670 28,115 549

Accounts Payable 27,140 26,319 21,699

KEY RATIOS

FY 2008 FY 2009 FY 2010

Gross Profit Margin (%) 30.84 17.83 24.95

Operating Profit Margin (%) 7.49 3.68 10.92

Return on Revenue (%) 4.91 2.19 7.57

Return on Networth (%) 111.38 33.47 75.59

Return on Capital Employed (%) 17.08 10.15 101.27

Total Debt Equity Ratio (Times) 8.94 4.89 0.08

Interest Coverage Ratio (Times) 2.91 2.27 -



PROVISIONAL FINANCIAL PERFORMANCE

--------------------------------------------------------------------------------------------------------------------------

As per unaudited financial statement revenue booked by company till September is 7.68 crores.



REVENUE

-----------------------------------------------------------------------------------------------------------------------------

LOCAL : 94%

INTERNATIONAL : 6%

SELLING TERMS

LOCAL TERMS

Open Account : 90 days

EXPORT TERMS

Open Account : 30 days

CUSTOMERS

-----------------------------------------------------------------------------------------------------------------------------

MAJOR CUSTOMER TYPES

� Advertising Agencies

� Television Channels

� Corporate Companies

� Government bodies

MAJOR CUSTOMER NAMES

Name of Customer Country % Total

Revenue

Length of

Relationship

(Year)

Ogilvy and Mather Private Limited India 21 5

Volkswagen Group Sales India Private

Limited India 12 1

Contract Advertising (India) Private

Limited India 10 3

Reliance India 8 2



FOREIGN EXCHANGE TRANSACTIONS

-----------------------------------------------------------------------------------------------------------------------------

(INR in Thousand)

Particulars FY 2008 FY 2009 FY 2010

Imports (CIF Value): 2,418 18,175 3,479

Exports (FOB Value): 7,253 - 8,710

SUPPLIERS

-----------------------------------------------------------------------------------------------------------------------------

Name of Supplier Country % Share

in Purchase

Length of

Relationship

(Year)

Set Square India 5 4

Prime Focus Limited India 3 4

Century Communications Private limited India 3 4

Adwertajzing Polland 3 1

VHQ Post (S) Pte Limited Singapore 1 5

EMPLOYEES

-----------------------------------------------------------------------------------------------------------------------------

Employees (Head Office location) : 15

Total Current Employees : 15



REGISTRATION DETAILS

-----------------------------------------------------------------------------------------------------------------------------

LEGAL STRUCTURE : Public Limited Company

INCORPORATED : 9th August 2007

REGISTRATION BODY : Registrar of Companies

REGISTRATION NUMBER : 172984

Mumbai, Maharashtra

India

REGISTERED OFFICE : A-301/302, Poseidon Tower

Panch Marg, Off Yari Road

Versova, Andheri West

Mumbai - 400061

Maharashtra

India

LAST AGM DATE : 23rd

September 2009

LAST ANNUAL RETURN DATE : 29th September 2009

LAST FINANCIAL STATEMENT DATE : 31st March 2010

CAPITAL DETAILS

-----------------------------------------------------------------------------------------------------------------------------

AUTHORIZED CAPITAL : INR 150,000,000 as on 31st March 2010

ISSUED CAPITAL : INR 2,125,000 as on 31st March 2010

PAID-UP CAPITAL : INR 2,125,000 as on 31st March 2010

ORDINARY SHARES : 212,500 Equity shares at par value of INR 10 each



SHAREHOLDING PATTERN

-----------------------------------------------------------------------------------------------------------------------------

Name of Shareholders Location Shares Held % Held

Junaid Abdulrazak Memon India 55,000 25.88

Amitabh Bhattacharya India 27,500 12.94

Sona Bose Bhattacharya India 27,500 12.94

Others India 102,500 48.24

Total 212,500 100.00

Total number of Shareholders : 7

Shareholding as on : 31st March 2010

Source: As provided by the Management

AUDITORS

-----------------------------------------------------------------------------------------------------------------------------

Vijay G. Vaghela & Co

13 Siddhi Sai Prasad CHSL

Sai Wadi

Dr N S Phadke Marg

Andheri East

Mumbai – 400069

Maharashtra

India



CORPORATE DIRECTORS

-----------------------------------------------------------------------------------------------------------------------------

Name of Directors Current Title

Junaid Abdulrazak Memon Director

Amitabh Bhattacharya Director

Sona Bhattacharya Director

Refer Annexure I for details

EXECUTIVES

-----------------------------------------------------------------------------------------------------------------------------

Name of Executives Current Title

Riyaz Memon Head of Production (TV Commercial)

Joshua Uppaturu Producer (TV Commercial)

Abhijit Aranke Head (Advertising Agency)

Roopa Das Creative Head (TV programs)

Ashwin Nathane Financial Controller

Aroona Bhat Head (Events)



BANK

-----------------------------------------------------------------------------------------------------------------------------

NAME : Citibank NA

BRANCH : Parel Branch

The Company deals with the Citibank NA since 9th October 2007.



HEAD OFFICE LOCATION DETAILS

-----------------------------------------------------------------------------------------------------------------------------

SIZE OF PREMISE : 2,500 Square feet

TYPE OF OCCUPATION : Owned

PREMISES USED AS : Administration Office

PREVIOUS ADDRESS

-----------------------------------------------------------------------------------------------------------------------------

D-71, Shalaka Appartment,

D. N. Nagar

Behind Ymca

Andheri West

Mumbai - 400 053

Maharashtra

India

Date of Change: 25th January 2008



GROUP ENTITY

-----------------------------------------------------------------------------------------------------------------------------

Name of the

Entity Legal Structure Line of Business

Guava Creative

Solutions

Private Limited

Private Limited

Company Advertising Agency

Nomad Events

Private Limited

Private Limited

Company Event Management

Nomad

Telefilms

Private Limited

Private Limited

Company

Production of TV

programs

Nomad Studios

Private Limited

Private Limited

Company

Distributor, Marketing and

motion pictures and

ownership of IP rights of

Motion Pictures



REGISTRATION

-----------------------------------------------------------------------------------------------------------------------------

� Permanent Account Number : AACCN7844G

� Service Tax Registration Number : AACCM7844GST001

� Importer exporter code : 0309083150

MEMBERSHIPS

-----------------------------------------------------------------------------------------------------------------------------

� Association of Motion Pictures and TV Program Producers

� Indian Motion Pictures Producers Association

� IQ, Switzerland

AWARDS / CERTIFICATIONS

-----------------------------------------------------------------------------------------------------------------------------

� Goa Fest 2007, Bronze for VFX (TV Commercial for Moser Baer)



FINANCIAL ANALYSIS

-----------------------------------------------------------------------------------------------------------------------------

� Revenue and Net Profit

NOTE: Financials for FY 2008 and FY 2009 pertain to the partnership firm Nomad Films, whereas, the

financials for FY 2010 pertain to the public limited company Nomad Films Limited

REVENUE


commercials, feature films and television serials. It recently started event management also.

Revenue of the Company declined marginally by 12.43% in FY 2009. However in FY 2010 there was a

substantial increase in revenue.

0.00

10.00

20.00

30.00

40.00

2008 2009 2010

Margins

Gross Profit Margin Operating Profit Margin

Net Profit Margin

%

-12.43

191.81

-60.99

910.00

(400.00)

0.00

400.00

800.00

1200.00

2009 2010

Percentage

Revenue and Net Profit Growth

Revenue Growth Net Profit Growth

58,975 51,643

150,698

0

50,000

100,000

150,000

200,000

2008 2009 2010

INR (In '000)

Revenue

Revenue

2,897

1,130

11,413

0

4,000

8,000

12,000

16,000

2008 2009 2010

INR (In '000)

Net Profit

Net Profit



PROFIT

Gross Profit Margin

The gross profit margin of the Company declined from 30.84% in FY 2008 to 17.83% in FY 2009

mainly on account of increase in production expenses and cost of technical services in proportion of

revenue.

The gross profit margin increased to 24.95% in FY 2010 on account of decline in direct expenses in

proportion of revenue.

Operating Profit Margin

Despite a decline in general and administration expenses in proportion to revenue from 20.28% in FY

2008 to 13.51% in FY 2009, operating profit margin declined from 7.49% in FY 2008 to 3.68% in FY

2009 mainly on account of decline in gross profit margin.

Operating profit margin increased to 10.92% in FY 2010 mainly on account of increase in gross profit

margin.

Net Profit Margin

The net profit margin declined from 4.91% in FY 2008 to 2.19% in FY 2009 mainly on account of

decline in operating profit margin.

However, the net profit margin of Company increased to 7.57% in FY 2010 mainly on account of

increase in operating profit margin.



� Tangible Networth and Capital Employed

Tangible networth includes equity capital, reserves and surplus less intangible assets, miscellaneous

expenditure and accumulated losses, if any.

It increased in FY 2009 on account of retention of profit. It increased substantially in FY 2010 as the

Company issued shares at a premium and profit retained by Company increased substantially.

Capital employed comprises of tangible networth and total debt. It decreased in FY 2009 mainly on

account of decline in short and long term loan taken from banks and financials institutions. It further

declined in FY 2010 as the company repaid its loans from banks and financials institutions.

Composition of Sources of Funds

(In Percentage)


Tangible Networth 10.06 16.98 92.35

Total Debt 89.94 83.02 7.65

Capital Employed 100.00 100.00 100.00

Composition of Borrowed Funds

(In Percentage)


Short Term Loans 8.43 6.23 -

Long Term Loans 91.57 93.77 100.00

Total Debt 100.00 100.00 100.00

2,601

3,376

15,098

0

5,000

10,000

15,000

20,000

2008 2009 2010

INR (In '000)

Tangible Networth

Tangible Networth

25,855

19,884 16,348

0

9,000

18,000

27,000

36,000

2008 2009 2010

INR (In '000)

Capital Employed

Capital Employed



Short term loans comprised of working capital borrowings from Barclays Bank. Whereas, the long term

loans mainly comprised of term loans from banks and financial institution and unsecured loans.

Composition of Borrowed Funds

(In Percentage)


Secured Loan 91.31 90.94 0

Unsecured Loan 8.69 9.06 100.00

Total Debt 100.00 100.00 100.00



� Return on Networth and Return on Capital Employed

Return on networth declined sharply in FY 2009 on account of increase in tangible networth coupled

with decline in profit. However, it increased in FY 2010 on account of growth in profit being more than

increase in tangible networth.

(In Percentage)

Particulars FY 2009 FY 2010

Growth/(Decline) in Profit (60.99) 910.00

Increase in Tangible Networth 29.80 347.22

Return on capital employed declined marginally in FY 2009 on account of decline in EBIT being more

than decrease in capital employed. However, it increased in FY 2010 on account of growth in EBIT

coupled with a decrease in capital employed.

(In Percentage)


Growth/(Decline) in EBIT (54.29) 720.42

Increase/(Decrease) in Capital Employed (23.09) (17.78)


Interest Expenses (INR in Thousand) 1,518 888 0

Average Total Debt (INR in Thousand) - 19,881 8,879

Average Cost of Borrowed Funds (%) - 4.47 -


Return on capital employed was more than average cost of borrowed funds in FY 2009.

111.38

33.47

75.59

0.00

40.00

80.00

120.00

160.00

2008 2009 2010

Percentage

Return on Networth

Return on Networth

17.08

10.15

101.27

0.00

30.00

60.00

90.00

120.00

2008 2009 2010

Percentage

Return on Capital Employed

Return on Capital Employed



� Total Debt Equity Ratio and Interest Coverage Ratio

Total debt equity ratio is calculated as total debt divided by tangible networth.

Total debt equity ratio declined in FY 2009 and FY 2010 on account of increase in networth coupled

with a decline in total debt.

(In Percentage)


Increase in Tangible Networth 29.80 347.22

Growth/(Decline) in Total Debt (29.01) (92.43)

Interest coverage ratio indicates the adequacy of EBIT of the Company to cover its interest obligations.

(In Percentage)


Decline in Interest Expenses (41.50) -

Growth/(Decline) in EBIT (54.29) 720.42

It decreased in FY 2009 on account of decline in EBIT being more than decline in interest expenses.

8.94

4.89

0.080.00

2.50

5.00

7.50

10.00

2008 2009 2010

Times

Total Debt Equity Ratio

Total Debt Equity Ratio

2.912.27

0.000.00

1.00

2.00

3.00

4.00

2008 2009 2010

Times

Interest Coverage Ratio

Interest Coverage Ratio



� Liquidity Ratios

Composition of Current Assets

(In Percentage)


Other Loans & Advances 48.03 35.12 47.95

Accounts Receivable 35.76 19.12 23.59

Cash and Bank 1.88 13.78 23.20

Tax Deduced at Source and Advance Tax 13.32 31.06 4.59

Other Deposits 1.01 0.92 0.67

Total 100.00 100.00 100.00

Composition of Current Liabilities

(In Percentage)


Accounts Payable 75.91 60.86 60.38

Provision for Fringe Benefit Tax - - 21.68

Provision for Income Tax - - 14.25

Due to Customers - 12.91 2.84

Duties and Taxes Payable 18.11 23.41 -

Bank Loan 5.49 2.38 -

Other Current Liabilities 0.49 0.44 0.85

Total 100.00 100.00 100.00

0.86

0.78

1.44

0.86 0.78

1.44

0.00

0.50

1.00

1.50

2.00

2008 2009 2010

Times

Liquidity

Current Ratio Quick Ratio

10%

53%

21%

-17%-40%

0%

40%

80%

120%

2009 2010

y-o-y growth

Change in Current Assets & Current

Liabilities

Current Assets Current Liabilities



SWOT

-----------------------------------------------------------------------------------------------------------------------------

STRENGTHS

� Reputed customer base

The Company enjoys good relationship with reputed customers and top advertising agencies

like Ogilvy and Mather Private Limited, Reliance, Contract Advertising Private Limited, James

Walter Thompson etc. which has facilitated repeat orders from them. It is associated with

Ogilvy and Mather since 5 years and Contract advertising Private Limited since 3 years.

� Creative Team

Company is currently led by Mr. Junaid Memon, director and Mr. Amitabh Bhattacharya,

director. Mr. Junaid Memon has 13 years of experience in related field. Mr. Amitabh

Bhattacharya has prior work experience of working with top advertising agencies like James

Walter Thompson, Mudra and Leo Burnett. Their relevant experience and creativity helps in

driving the business of Company. Moreover, as informed it hires young people which help the

Company to have fresh and creative talent.

� Less reliance on external funds indicating adequate scope to raise additional leverage to

fund the expansion plan

Debt equity showed a decreasing trend. It decreased to 0.08 in FY 2010. This indicates the

Company has scope to fund its future plans through additional leverage.

� Adequate immediate solvency as indicated by quick and current ratio

The Current ratio and quick ratio of the Company were 1.44 in FY 2010 indicating sufficient

current assets to pay off its current liabilities. Current and quick ratio of the Company stood at

0.78 in FY 2009. This indicates that the liquidity of Company has improved to make short term

payment.



WEAKNESSES

� Uneven Gross and Operating profit margin

Company had uneven trend in gross profit and operating profit margin throughout the period

under study. Both declined in FY 2009. However they increased in FY 2010, they were 24.95

and 10.92 respectively. Net profit margin was 7.57% in FY 2010. Inspite of increase Company

has low operating and net profit margins and it needs to improve on its profit margins.

� Dependence on advertising business

As informed, Company earns major revenue from advertising business. It has four major

customers which contribute around 51% of total revenue. Moreover, 21% of revenue is earned

from Oligvy and Mather Private Limited. This may lead to customer concentration risk.

OPPORTUNITIES

� Scope of expansion to international market

Currently revenue from international projects is only 6%. Company has scope of expanding to

international market. As informed it has plans to take up some more international projects

which will increase the topline of Company.

� Business growth will help this Industry

As the Indian economy is coming out of slowdown, the business growth is back. The

inclination of Corporates to spend more on advertisement will help the Company to grow.

� Expansion in broadcasting business

The Company is having expansion plans to launch a non news channel and to undertake

government projects. Thus, subject to successful execution of said plan, Company can expect

an increase in its topline.

THREATS

� Competition

The industry is highly fragmented and therefore exposed to intense competition. Stiff

competition may affect the margins of Company.

� Creative industry

As the Company operates in the industry where creativity plays a crucial role, any attrition in

the creative team may affect the performance of the Company.



ANNEXURE I - CORPORATE DIRECTORS

-----------------------------------------------------------------------------------------------------------------------------

Name : Junaid Abdulrazak Memon

Address : 115/922, Motilal Nagar No 1

Goregaon West

Mumbai - 400104

Maharashtra

India

Date of Birth : 2nd

July 1971

Permanent Account Number : ACJPM4289J

Director Identification Number : 01295578

Current Title : Director

Started with Subject : 4th April 2003

Appointed to present position : 9th August 2007

Education : Diploma in Film making

Related Experience since : 1997

Active in daily operations : Yes

Name : Amitabh Bhattacharya

Address : A-1105-06, hill grange

Hiranandani estate

G. B. Rd patlipada

Thane, 400607

Maharashtra

India

Date of Birth : 1st March 1968

Permanent Account Number : E3428500



Started with Subject : 4th April 2003


Education : Diploma in Film Making


Active in daily operations : Yes



Name : Sona Bhattacharya

Address : 1105/06-A, Hill Grange

Hiranandani Estate

Ghodbunder Road

Thane – (W)

Thane- 400607

Maharashtra

India

Date of Birth : 17th July 1969

Permanent Account Number : AJIPB5879K



Started with Subject : 9th August 2007


Education : Diploma in Fashion Designing


Active in daily operations : No



ANNEXURE II - FINANCIAL STATEMENTS

----------------------------------------------------------------------------------------------------------------------------

Fiscal Balance Sheet as on 31st March 2010 (INR in Thousand)

Cash and Bank 11,971 Accounts Payable 21,699

Deposit-Short Term 346 Due to Customers 1,019

Accounts Receivable 12,177 Other Payables / Accruals 308

Loans and Advances 24,747 Prov. Income Tax 12,911

Tax Deducted at Source and

Advance Tax 2,369

Total Current Assets 51,610 Total Current Liabilities 35,937

Furniture, Fixtures & Fitting 172 Deferred Taxation 24

Office Equipment 83 Due to Directors / Shareholders 1,250

Computers \Servers 294

Total Fixed Assets 549 Total Non-Current Liabilities 1,274

Investment in Affiliates 75 Capital 2,125

Shares 75 Share Premium 2,500

Retained Earnings 11,413

Total Investments 150 Total Equity 16,038

Other Intangibles 940

Total Intangibles 940

TOTAL ASSETS 53,249 TOTAL LIABILITIES AND

EQUITY 53,249



Profit and Loss Account (INR in Thousand)

For the year ended 31-Mar-08 31-Mar-09 31-Mar-10

Number of months 12 12 12

Fiscal Fiscal Fiscal

Revenue 58,975 51,643 150,698

Less: Cost of revenue (40,786) (42,434) (113,102)

Gross Profit 18,189 9,209 37,596

Other Operating Income - 1,084 -

General Operating Expenses (12,491) (7,312) (21,059)

Depreciation (1,283) (1,082) (78)

Net Operating Profit after Depreciation

and before Interest 4,415 1,899 16,459

Other Non-Operating Income - 119 97

Total Interest Expenses (1,518) (888) -

Net Profit before Tax 2,897 1,130 16,556

Income Tax - - (5,143)

Net Profit after Tax 2,897 1,130 11,413

Plus Retained Earnings B/F - - -

Retained Earnings C/F 2,897 1,130 11,413

Accounts are audited by Vijay G. Vaghela & Co.



KEY RATIOS

FY 2008 FY 2009 FY 2010

GROWTH TREND

Revenue Growth (%) - (12.43) 191.81

Net Profit Growth (%) - (60.99) 910.00

LIQUIDITY

Quick Ratio (Times) 0.86 0.78 1.44

Current Ratio (Times) 0.86 0.78 1.44

SOLVENCY

Interest Coverage Ratio (Times) 2.91 2.27 -

Current Liabilities to Networth (%) 1,374.51 1,280.86 238.02

LEVERAGE

Total Debt Equity Ratio (Times) 8.94 4.89 0.08

Total Liabilities to Networth (%) 2,193.16 1,739.37 246.46

Fixed Assets to Networth (%) 1,102.27 832.79 3.64

EFFICIENCY

Collection Period (Days) 68 46 29

Revenue to Inventory (Times) - - -

Assets to Revenue (%) 101.14 120.24 34.71

Revenue to Net Working Capital (Times) (11.73) (5.43) 9.62

PROFITABILITY

Gross Profit Margin (%) 30.84 17.83 24.95

Operating Profit Ratio (%) 7.49 3.68 10.92

Return on Revenue (%) 4.91 2.19 7.57

Return on Assets (%) 4.86 1.82 21.82

Return on Networth (%) 111.38 33.47 75.59




CURRENCY: All amounts in this report are in local currency unless otherwise stated.

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