MIRA
INFORM REPORT
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Report Date : |
26.09.2007 |
IDENTIFICATION DETAILS
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Name : |
JAGRAN PRAKASHAN LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
18.07.1975 |
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Com. Reg. No.: |
004147 |
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CIN No.: [Company
Identification No.] |
L22219UP1975PLC004147 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
KNPJ01318C |
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PAN No.: [Permanent
Account No.] |
AAACJ3404A |
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Legal Form : |
Public limited liability company. Company’s shares are listed on the stock exchange |
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Line of Business : |
Subject is engaged in printing and publishing of Hindi
daily newspapers, books, periodicals,
journals, magazines, pamphlets and other literary works. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 20444196 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory track
records. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. The company can be considered for business dealings at usual trade
terms and conditions. |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-512-2216161-64 |
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Fax No.: |
91-512-2216972 |
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E-Mail : |
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Website : |
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Area : |
15000 sq. yds |
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Location : |
owned |
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Printing
Centres : |
Located at: Kanpur, Lucknow, Gorakhpur, Varanasi, Allahabad, Meerut, Dehradun, Agra, Aligarh, Bareilly, Moradabad, Jalandhar, Noida, Hissar, Patna, Ranchi, Dhanbad, Jamshedpur, Bhagalpur, Panipat, Ludhiana, Haldwani(Nainital), Muzaffarpur, Jammu, Dharamshala ,Siliguri, Bhopal, Rewa, lndore, |
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Business
Representative : |
Located at: Kolkata, |
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Branches : |
Located at: |
DIRECTORS
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Name : |
Mr. Mahendra Mohan Gupta |
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Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
65 Years |
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Qualification : |
B.com |
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Experience : |
45 Years |
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Profile : |
Mr. Mahendra Mohan Gupta (66 years) is the Chairman and Managing Director of our Company and also holds the position of Managing Editor of Dainik Jagran. He holds a bachelor's degree in commerce. Mr. Gupta has more than 46 years of experience in the print media industry. Mr. Gupta has held various key positions in the industry including being the Chairman of United News of India ("UNI"), President of The Indian Newspaper Society ("INS"), President of Indian Languages Newspaper Association ("ILNA"), Council Member of Audit Bureau of Circulations, Member of Press Council of India and Member of Film Censor Board of India, Member of the Board of Press Trust of India (PTI) besides holding senior honorary positions in various social and cultural organizations. Mr. Gupta is also Member of Parliament (Rajya Sabha) and presently
Member on the Board of UNI, PTI, INS and Merchants' Chambers of Uttar
Pradesh. His work for the cause of society, Indian trade and industry in
general and newspaper industry in particular has been recognized by various
social, cultural and professional bodies in |
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Other Directorship: |
Shakumbari Sugar and Allied Industries Limited |
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Name : |
Mr. Sanjay Gupta |
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Designation : |
Whole Time Director and CEO |
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Date of Birth/Age : |
43 Years |
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Qualification : |
B.Sc |
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Experience : |
23 Years |
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Profile : |
Mr. Sanjay Gupta (44
years) is a whole-time Director and also holds the position of Editor of
Dainik Jagran and CEO of our Company. He holds a bachelor's degree in
science. Mr. Gupta has more than 24 years of experience in the print media
industry. Besides being the Editor of Dainik Jagran and CEO of our Company,
he is also responsible for our operations in the northern region comprising
of |
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Name : |
Mr. Dhirendra Mohan Gupta |
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Designation : |
Whole Tisme Director |
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Date of Birth/Age : |
62 years |
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Qualification : |
B.A |
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Experience : |
40 Years |
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Profile : |
Mr. Dhirendra Mohan Gupta (63 years) is a whole-time
Director. He holds a bachelor's degree in arts. Mr. Gupta has more than 41 years
of experience in the print media industry. He is the Director-in-charge of
our operations in the western regions of Uttar Pradesh and Uttaranchal. Mr.
Gupta has been a director of our Company since inception of the Company 1993
and is a nominee of our Promoters. |
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Name : |
Mr. Sunil Gupta |
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Designation : |
Whole Time Director |
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Date of Birth/Age : |
44 Years |
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Qualification : |
M.com |
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Experience : |
24 Years |
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Profile : |
Mr. Sunil Gupta (45
years) is a whole-time Director. He holds a bachelor's and a master's degree
in commerce. Mr. Gupta has more than 24 years of experience in the print
media industry. He is incharge of our operations in |
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Other Directorship: |
Shakumbari Sugar
and Allied Industries Limited |
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Name : |
Mr. Shailesh Gupta |
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Designation : |
Whole Time Director |
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Date of Birth/Age : |
38 Years |
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Qualification : |
B. Com. |
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Experience : |
17 Years |
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Profile : |
Mr.
Shailesh Gupta (38 years) is a whole-time Director of our Company. He holds
a bachelor's degree in commerce. Mr. Gupta has more than 17 years of
experience in the print media industry. He is Member of Council of Audit
Bureau of Circulations, The Indian Newspaper Society and heads our
advertisement and marketing department. Mr. Gupta has been a director of our
Company since 1994 and is a nominee of our Promoters. |
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Name : |
Sir Anthony J. F. 0' Reilly |
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Designation : |
Director |
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Date of Birth/Age : |
70 Years |
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Qualification : |
Graduate in Civil Law and Degree in Agriculture Marketing |
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Experience : |
-- |
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Profile : |
Sir Anthony J. F.
O'Reilly (70 years) is a non executive Director. Sir Anthony was
educated in |
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Name : |
Mr. Gavin K. O'Reilly |
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Designation : |
Director |
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Date of Birth/Age : |
40 Years |
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Qualification : |
B. Sc. |
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Experience : |
-- |
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Profile : |
Mr. Gavin K.
O'Reilly (40 years) is a non-executive Director. He holds a bachelor's
degree in science from |
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Name : |
Mr. Anuj Puri |
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Designation : |
Director |
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Date of Birth/Age : |
40 Years |
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Qualification : |
B. Com. |
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Experience : |
17 Years |
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Profile : |
Mr. Anuj Puri (40
years) is an independent Director. He holds a bachelor's degree in commerce,
is an Anociate of the |
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Name : |
Mr. Bharat Ji Agrawal |
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Designation : |
Director |
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Date of Birth/Age : |
64 Years |
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Qualification : |
B. Sc. and Degree in Law |
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Experience : |
-- |
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Profile : |
Mr. Bharat Ji
Agrawal (64 years) is an independent Director. He holds a bachelor's
degree in science and a bachelor's degree in law. Mr. Agrawal has been
practicing as an advocate for about 43 years. Mr. Agrawal has been designated
as Senior Advocate by the High Court, |
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Name : |
Mr. Kishore Biyani |
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Designation : |
Director |
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Date of Birth/Age : |
46 Years |
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Qualification : |
B. Com. and Post Graduate – Marketing
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Experience : |
-- |
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Profile : |
Mr. Kishore Biyani
(46 years) is an independent Director. He holds a bachelor's degree in
commerce and a post graduate degree in marketing. Mr. Biyani is the Group CEO
of Future Group and is the Founder and Managing Director of Pantaloon Retail
( |
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Other Directorship: |
Ø
Pantaloon
Retail ( Ø
Pantaloon
Industries Limited Ø
PFH
Entertainment Limited Ø
Home
Solutions Retail ( Ø
Future
Ideas Company Limited Ø
KB Mail
Management Company Limited Ø
Idiom
Design And Consulting Limited Ø
Galaxy
Entertainment Corporation Limited Ø
Future
Brands Limited Ø
UTV
Software Communications Limited Ø
Future
Generali India Life Assurance Company Limited Ø
Future
Generali India Insurance Company Limited |
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Name : |
Mr. Naresh Mohan |
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Designation : |
Director |
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Date of Birth/Age : |
65 Years |
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Qualification : |
B. A. |
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Experience : |
43 Years |
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Profile : |
Mr. Naresh Mohan (65 years) is an independent Director. He holds a bachelor's degree in arts. Mr. Mohan has more than 43 years of work experience in the print media industry. Prior to retirement in 1998, he worked with The Hindustan Times Limited as Executive President. Subsequently, Mr. Mohan is engaged in media consultancy. Mr. Mohan has held various key positions in the print media industry including being the President of Indian Newspaper Society, Chairman of United News of India, Chairman of Audit Bureau of Circulations and Member of Press Council of India. Mr. Mohan is presently the member of the Executive Committee of The Indian Newspaper Society and the Director of The Statesman Limited. Mr. Mohan joined our Board on November 18, 2005. |
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Other Directorship: |
The Statesman
Limited |
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Name : |
Mr. Rashid Mirza |
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Designation : |
Director |
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Date of Birth/Age : |
51 Years |
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Qualification : |
Diploma in Leather Technology |
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Experience : |
31 Years |
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Profile : |
Mr. Rashid Mirza (51
years) is an independent Director. He holds a diploma in leather technology
from |
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Other Directorship: |
Mirza
International Limited |
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Name : |
Mr. Vijay Tandon |
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Designation : |
Director |
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Date of Birth/Age : |
62 Years |
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Qualification : |
Graduate |
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Experience : |
30 Years |
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Profile : |
Mr. Vijay Tandon (62
years) is an independent Director. He graduated from the |
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Name : |
Mr. Vikram Bakshi |
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Designation : |
Director |
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Date of Birth/Age : |
52 Years |
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Qualification : |
B. Sc. |
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Experience : |
25 Years |
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Profile : |
Mr. Vikram Bakshi (52
years) is an independent Director. He holds a bachelor's degree in science.
Mr. Bakshi has extensive experience spanning 25 years in real estate,
hospitality and retail. As the Managing Director & JV Partner of
McDonalds India, a Joint Venture with McDonald's Corporation of U.S., he has
successfully established McDonalds as the industry leader in the food
services sector in |
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Other Directorship: |
Ø
Ascot
Hotels and Resort Limited Ø
PVR
Limited Ø
Arabian
Sea Resorts Limited Ø
K K
Roapways Limited |
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Name : |
Mr. Eamonn U. O’Kennedy |
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Designation : |
Non Executive Director |
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Date of Birth/Age : |
34 Years |
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Qualification : |
Chartered Accountant |
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Experience : |
-- |
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Profile : |
Mr. Eamonn U. O'Kennedy (34 years) is a non executive Director. He is a chartered accountant and holds a bachelor's degree in commerce and a master's degree in accounting from University College Dublin. He joined Independent News & Media PLC in February 1999 and was appointed Group Finance Manager in May 2001. Mr. 0' Kennedy joined our Board on July 29, 2006 as alternate Director to Sir Anthony J. F. O'Reilly and is a nominee of Independent News & Media Investments Limited. |
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Name : |
Mr. Devendra Mohan Gupta |
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Designation : |
Non Executive Director |
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Date of Birth/Age : |
57 Years |
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Qualification : |
B. Engineering (Mechanical) |
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Experience : |
12 Years |
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Profile : |
Devendra Mohan
Gupta (57 years) is a non executive Director. He holds a bachelor's
degree in Engineering (Mechanical). Mr. Gupta has more than 12 years of
experience in handling Product Design, Research & Development,
Production, Purchase & Sales (Domestic & Overseas). He is pioneer in
introducing D.C. Micro Motors technology in the country and Indian Standard
Institution (I.S.I.), took Mr. Gupta on its Panel in the year 1979 for D.C.
Micro Motors. Mr. Gupta has helped I.S.I, for formulating the specifications
for D.C. Micro Motors & bringing out its first Standard IS: 9670 in the
year 1980. He is the Managing Director of Jagmani Micro Knit Private Limited
and Classic Hosiery Private Limited. He is the recipient of Export award of
Electronics & Computer Software Export Promotion Council (sponsored by
the Ministry of Commerce, Govt. of |
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Other Directorship: |
Ø
Kanchan
Properties Limited Ø
SPFL
Securities Limited |
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Audit Committee: |
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Name : |
Mr. Vijay Tandon |
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Designation : |
Chairman |
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Name : |
Mr. Gavin K. O'Reilly |
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Designation : |
Director |
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Name : |
Mr. Kishore Biyani |
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Designation : |
Director |
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Name : |
Mr. Naresh Mohan |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Amit Jaiswal |
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Designation : |
Company Secretary |
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Address : |
The Company Secretary, |
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Tel. No.: |
91-512-2216161-64 |
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Fax No.: |
91-512-2216972 |
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Email : |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters and Promoters Group including persons acting in concert. |
31379555 |
52.10 |
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Mutual Funds & UTI |
6492768 |
10.78 |
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Banks, Financial Institutions, Insurance Companies, Central/ State Gov. Institutions/ Non-governmental Institutions, Venture Capital |
751406 |
1.25 |
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Foreign Institutional Investors (Flls) |
2345426 |
3.89 |
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Private Corporate Bodies |
12918632 |
21.45 |
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Indian Public |
6325263 |
10.50 |
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NRIs/OCBs |
11063 |
0.02 |
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Clearing Members |
10004 |
0.02 |
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Total |
60234117 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in printing and publishing of Hindi
daily newspapers, books, periodicals, journals,
magazines, pamphlets and other literary works. |
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Products : |
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PRODUCTION STATUS
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Particulars |
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Actual
Production |
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Newspaper |
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8.80.473 |
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Supplementary |
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24.130 |
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Magazines |
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|
0.579 |
GENERAL INFORMATION
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No. of Employees : |
2700 |
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Bankers : |
s
Central Bank of s
Bank of s
ICICI Bank Limited s
Allahabad Bank s
State Bank of s
Union Bank of s
Oriental Bank of Commerce |
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Facilities : |
NOTES:- 1 Debentures have tenure of five years, redeemable in three yearly
instalments of 30%,30%,40% with Call/ Put option. The redemption has to
commence and/or Cali/Putoption is exercisable after expiry of three years
from the date of allotment i.e. 14.07.2004. 2 Debentures, Working Capital Facilities and Term Loans are secured by
first charge ranking pari-passu between the Debenture Trustees, Central Bank
of a) by way of Hypothecation of all movable assets including fixed
assets, stocks, book debts and other receivables both present and future. b) by way of equitable mortgage of company's immovable properties, both present and future. 3 Term Loan includes Rupee Term Loan from BOB for Rs.216.232 Millions (Previous year FCNR B Loan Rs. 331.656Millions) and ECB Loan of Rs.
201.870 Millions (Previous year Rs.197.910 Millions). 4 Working Capital facilities from Central Bank of of of some of the propertiesof some of the directors and their relatives. 5 Amount payable with in a year Rs.192.290 Millions (previous
year Rs. 125.000 Millions) |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountants |
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Address : |
Building 8, 7th and 8th Floor, Tower B, |
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Associates/Subsidiaries : |
Subsidiaries: a) Jagmini Micro Knit Private Limited b) Classic Hosiery Private Limited c) Shakumbari Sugar and Allied Industries Limited d) Lakshmi Consultants Private Limited e) P.C. Overseas Private Limited f) Shri Puran Multimedia Limited (previously known as Shri Puran
Finance & Leasing Limited) g) Kanchan Properties Limited h) Jagran Subscriptions Private Limited i) Om Multimedia Private Limited j) Jagran TV Private Limited k) B.K. Fincap Private Limited I) SPFL Securities Limited m) Rave Entertainment Private Limited n) Rave @ Moti Entertainment Private Limited o) Leet E-Sport Private Limited p) Jagran Investment Co. Associates: a) Jagran Limited b) Jagran Infotech Limited c) Jagran Publications Private Limited d) Jagran Prakashan (MPC) Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7,50,00,000 |
Equity Shares |
Rs,.10/- each |
Rs.750.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6,02,34,117 |
Equtiy Shares |
Rs. 10/-
each |
Rs.602.341
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
602.341 |
501.950 |
100.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
4508.708 |
4365.360 |
586.690 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
5111.049 |
4867.310 |
686.690 |
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LOAN FUNDS |
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|
1] Secured Loans |
1067.280 |
1164.409 |
1075.191 |
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2] Unsecured Loans |
0.000 |
0.000 |
223.117 |
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TOTAL BORROWING |
1067.280 |
1164.409 |
1298.308 |
|
|
Deffered Credits |
|
0.504 |
5.324 |
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DEFERRED TAX LIABILITIES |
383.900 |
368.200 |
284.000 |
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TOTAL |
6562.229 |
6400.424 |
2274.322 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2139.659 |
1357.490 |
1062.337 |
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Capital work-in-progress |
505.737 |
240.533 |
192.684 |
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|
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INVESTMENT |
1445.947 |
1759.979 |
6.555 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
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|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
327.744
|
245.806
|
367.712 |
|
|
Sundry Debtors |
1140.358
|
1040.107
|
770.314 |
|
|
Cash & Bank Balances |
1013.487
|
1745.590
|
112.734 |
|
|
Other Current Assets |
50.739
|
20.443
|
0.461 |
|
|
Loans & Advances |
588.881
|
347.855
|
159.376 |
|
Total
Current Assets |
3121.209
|
3399.801 |
1410.597 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
580.012
|
337.417
|
265.300 |
|
|
Provisions |
72.311
|
21.562
|
132.551 |
|
Total
Current Liabilities |
652.323
|
358.979 |
397.851 |
|
|
Net Current Assets |
2468.886
|
3040.822 |
1012.746 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
2.000 |
1.600 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6562.229 |
6400.424 |
2274.322 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
5981.821 |
4805.306 |
3763.659 |
|
|
Other Income |
247.620 |
63.679 |
11.059 |
|
|
Total Income |
6229.441 |
4868.985 |
3774.718 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
762.218 |
317.001 |
19.900 |
|
|
Provision for Taxation |
0.000 |
0.000 |
7.600 |
|
|
Profit/(Loss) After Tax |
762.218 |
317.001 |
12.300 |
|
|
|
|
|
|
|
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Earnings in Foreign Currency : |
|
|
|
|
|
|
Advertisement |
2.756 |
0.000 |
0.000 |
|
|
Revenue from other operating activities |
23.577 |
0.000 |
0.000 |
|
Total Earnings |
26.333 |
0.000 |
0.000 |
|
|
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|
|
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Imports : |
|
|
|
|
|
|
Raw Materials |
674.726 |
742.271 |
1280.451 |
|
|
Stores & Spares |
20.263 |
8.061 |
644.300 |
|
|
Capital Goods |
165.309 |
36.607 |
9.167 |
|
Total Imports |
860.298 |
786.939 |
1933.918 |
|
|
|
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Expenditures : |
|
|
|
|
|
|
Materials Consumed |
2530.849 |
2394.907 |
2172.962 |
|
|
Employee Cost |
704.323 |
566.911 |
0.000 |
|
|
Other Manufacturing Expenses |
272.672 |
236.478 |
335.820 |
|
|
Selling and Administration Expenses |
1275.193 |
905.653 |
546.836 |
|
|
Payment to
and Provison for Employees |
0.000 |
0.000 |
449.808 |
|
Total Expenditure |
4783.037 |
4103.949 |
3505.426 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2007 |
|
Type |
|
|
1st
Quarter |
|
Sales
Turnover |
|
|
1834.200 |
|
Other
Income |
|
|
88.500 |
|
Total
Income |
|
|
1922.700 |
|
Total
Expenditure |
|
|
1319.700 |
|
Operating
Profit |
|
|
603.000 |
|
Interest |
|
|
19.800 |
|
Gross
Profit |
|
|
583.200 |
|
Depreciation |
|
|
70.200 |
|
Tax |
|
|
165.900 |
|
Reported
PAT |
|
|
347.100 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity
Ratio |
0.22 |
0.44 |
1.55 |
|
Long
Term Debt-Equity Ratio |
0.09 |
0.27 |
1.28 |
|
Current
Ratio |
1.97 |
1.97 |
1.59 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
2.13 |
2.24 |
2.15 |
|
Inventory |
20.86 |
15.67 |
13.89 |
|
Debtors |
5.49 |
5.31 |
4.73 |
|
Interest
Cover Ratio |
14.55 |
7.01 |
1.25 |
|
Operating
Profit Margin(%) |
24.64 |
15.30 |
7.33 |
|
Profit
Before Interest And Tax Margin(%) |
20.67 |
11.11 |
2.66 |
|
Cash
Profit Margin(%) |
16.71 |
10.78 |
5.00 |
|
Adjusted
Net Profit Margin(%) |
12.74 |
6.60 |
0.33 |
|
Return
On Capital Employed(%) |
20.26 |
13.31 |
5.36 |
|
Return
On Net Worth(%) |
15.28 |
11.41 |
1.68 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
Ø Land (Freehold)
Ø Land (Leasehold)
Ø Buildings
Ø Plant And
Ø Machinery"
Ø Computers
Ø Furniture
Ø And Fixture
Ø Vehicles
The company is in
trade terms with:
Ministry of Publications, Government of
FINANCIAL HIGHLIGHTS:
During the year under review, the Company recorded an increase in total revenue of 27.95%, which was contributed by the increases in all revenue streams including advertisement revenue, which increased by 25.70% and circulation revenue which increased by 5.49% compared with the previous year as detailed in Management Discussion and Analysis Report forming part of Annual Report. The contribution in the total revenue of outdoor and event management activities, the Company's new initiative was 4.82%.
As a result of growth in total revenue, PBIDTA, PBT and PAT have recorded
manifold growth from the previous year. In relation to total revenue, PBIDTA
increased from 15.71% to 23.22%, PBT increased from 9.40% to 18.49% and PAT
increased from 6.51% to 12.24%.
DIVIDEND:
An interim dividend of Rs.7.50 per share of Rs.10/- each on 6,02,34,117 equity
shares aggregating to Rs.451.756 millions, declared by the Board at its meeting
held on January 30, 2007 is final dividend for the financial year
2006-07.
CHANGE IN SHARE CAPITAL:
The Company's capital comprises of equity shares of the face value of Rs.10/-
each. The Authorised Share Capital of the Company was increased from Rs.550.000
millions to Rs.750.000 millions Paid-up Equity Share Capital increased from
Rs.501.951 Millions to Rs.602.341
Millions on account of the issue of fully paid bonus shares in the ratio of 1:5
on November 9, 2006.
Overview - Financial
Year 2006-07:
The year 2006-07 was in continuation another eventful year for the company and
once again was a year of heartening performance. During the year, steps were
initiated to ensure that the benefit from the existing infrastructure and
business is optimised and the organic growth in line with the past trend is
sustained in future. A beginning was also made to create a base for the planned
inorganic growth and as part of ongoing process, the actions were taken to
improve further various systems and procedures to achieve greater degree of
accuracy in financial reporting and compliances.
Besides the growth of 27.95% in total revenue and 140.98% in net profits, there
were following significant developments during the year:
i. Advertisement revenue grew by 25.70%, which is once again ahead of
industry's overall growth rate of 22.8%.
ii. CAPEX of Rs.1249 millions was incurred primarily to enhance the printing
and publishing capabilities.
iii. Two new newspaper brands viz. I-Next and City Plus were launched to increase the market share. I-Next is a
daily compact bilingual newspaper targeting the youth. City Plus is a weekly compact infotainment English
newspaper again targeting the youth and is distributed free of cost. They believe that I-Next is the first
newspaper of its kind and City Plus will enable the company to expand its area of operation across the country.
iv. The foot print area of Dainik Jagran continued to be
expanded and three new editions viz.
v. They continued to invest and strengthen their brand. IRS and NRS readership surveys once again reaffirmed the
positioning of Dainik Jagran as the largest read newspaper of the country across all languages.
vi. An alliance agreement was entered into with Yahoo
branded as jagran.yahoo.in
and Yahoo
revenue sharing basis.
vii. A separate profit centre titled as J9 was created with a team of people who are experienced and well versed
with the business to take to next level the high potential Short Code Service commenced in last quarter of fiscal
2004-05.
viii. Out of home advertising activity with a team of professionals was commenced. By the end of fiscal 2006-07,
the company had
acquired properties at Mumbai,
country.
ix. Event management activity which was commenced in the financial year 2004-05 acquired size and performed
beyond expectations, crossing the targets by over 140%.
x. After closing the negotiations for acquisition of one of the leading regional Hindi daily, the acquisition could not
materialise as the owners of the brand withdrew for the reasons, as informed by them, beyond their control.
xi. The company made a Bonus Issue in the ratio of 1:5 and declared dividend @Rs.7.50 per share of Rs.10
each.
Xii.Price Waterhouse became the statutory auditors of the company.
Given the expected growth in Indian economy, the trend of growth achieved by the company in the past, high potential for the growth in the industry specially in their areas of operation, expected success from the new initiatives and the company's strategies and plans in place to capitalise on the available opportunities, they revise this year their expectations of growth in total revenue from 20% to 25% (CAGR) for next 3 years.
INDUSTRY STRUCTURE:
The structure of the Indian print media industry continues to be highly
fragmented, with over 8500 daily newspapers being published and registered with
Registrars of Newspaper of India as on 31st March 2006.
Set forth below is a table showing a breakdown of the print media industry by
total number of readers and the percentage of the population who are readers as
per IRS 2007, Round 1.
These figures indicate that a higher percentage of the population in the urban
areas read any print media than their rural counterparts. The overwhelming
majority (about 93%) of English-language newspaper readers are located in the
urban area while the number of readers of Hindi-language and other
Indian-languages newspapers are more evenly distributed between the urban and
rural areas. The figures also show that a much lower percentage of rural
residents are readers of print media in general which indicate potential.
(i) Media penetration in
As per IRS 2007 Round I, the print media penetration in Urban as well as Rural
India is higher, percentagewise, among people in the upper socio-economic
classes compared with those in the lower socioeconomic classes.
However, due to the sheer number of people who fall into the lower socio-economic classes, the number of readers in the lower socio-economic classes still outnumbers those in the upper socio-economic classes on an absolute basis, which indicates that there is plenty of potential for growth in readership numbers.
(ii)
Print accounted for the largest share of ad-spend in calendar year 2006 with
48.3%, followed by the television (41.4%), outdoor advertising (6.9%), radio
(2%), Internet (1.1%) and cinema advertising (0.4%). The total ad-spend in
calendar year 2006 was estimated to be Rs.145.05 billion, a 21.71% increase
compared with 2005. Print media ad-spend increased by 22.8% as against 19.9%
increase in television ad-spend in calendar year 2006 (Source Pitch-Madison
Survey).
OPPORTUNITIES
AND THREATS:
The industry in general and potential in their areas of operation backed by
huge loyal readers base in particular offer the tremendous opportunity to
them.
The expectations of robust economic growth supported by the government
initiatives including its renewed focus on development of Rural India together
with the aggressive plans of the private sector to expand retail, real estate
and service sectors, current low ad-spend of just 0.47% (calendar year 2005) as
against global average ad-spend of 0.98% of GDP and the fact that there are
nearly 360 million literate Indians who do not read newspaper for the reasons
of accessibility and lower disposable incomes are indicators of the
opportunities for the media industry.
The company has geared itself up to make most out of it and has plans to ensure
the organic as well as inorganic growth. The organic growth is going to be
driven by the potential in their areas of operation, maturity of editions and
their focus on expanding the market size and market share in addition to their
initiatives to optimize the benefit from existing infrastructure and business.
Inorganic growth is aimed at through the new brands launched by the company in
the last fiscal, new initiatives as discussed under the paragraph titled as
'Overview' and also through the route of acquisitions/joint ventures, which
once again they have actively started looking for.
The Directors do not perceive that the Company as such has any threat to its
business or financial condition. Of course, every business has risks and
concerns, and they are no exception. Please refer to the 'Risks and Concerns'
for their views.
OUTLOOK:
The outlook continues to be buoyant at the back of expectations of strong GDP
growth and the events such as General Elections (2009), Common Wealth Games
(2010) and Cricket World Cup (2011) in a row. This is apart from government's
renewed focus on development of Rural India and the aggressive plans of private
sector for expansion of retail, real estate and service sectors. Both
government and private sectors are looking at smaller towns and villages to
achieve their targeted growth as they realise that if the country has to
achieve the planned GDP growth, Rural India and the smaller towns have a vital
role to play and will have to make significant contributions.
The media sector is to benefit from the demographic impetus with rising income
levels, growing urban class and increasing Indian middle class. As per
McKinsey, income levels are likely to triple in
As per IRS 2007 Round 1 data, the number of households with monthly income of
over Rs.5000/- has grown over 10% in past 2 years.
Historically, the industry has had a strong co-relation with the growth in the
economy. During the period 1996-2006, the advertising industry's CAGR growth
was 10.5%, while the economy grew at an average of 6-7%. GDP growth has been in
the range of about 8-9% in past 3 years and it is expected that in next 5 years
this trend would continue.
Print media market (circulation and advertisement revenue), which is estimated
to be Rs.127900 millions in 2006, would grow at a CAGR of 13% during the period
upto 2011 (Source: FICCI-PWC Report). According to Pitch-Madison Survey,
advertising industry is expected to grow at 21.7% in calendar year 2007 to
march past Rs. 176500 millions mark and in that print media is expected to grow
at 22%.
They believe that the growth in media industry is going to be significantly
driven by the smaller towns and Rural India which with increasing literacy and
disposable income levels hold a substantially higher degree of potential than
the metros and other big towns which seem to be nearing the peak in terms of
literacy, disposable income and consumer spending.
They also believe that the northern, central and eastern
FINANCIAL
PERFORMANCE:
Previous year's figures have been regrouped/recast wherever necessary to make
them comparable to the corresponding figures of the current year and therefore might
not necessarily match with those reported in the previous year. Further, the
figures have been rounded off to nearest lakh.
REVENUE BREAK-UP:
(Rs. in Millions) 2006-07 % age 2005-06 % age
* Includes increase/(decrease) in stocks, which is insignificant.
Sales and other operating income: It comprises of advertisement revenue,
newspaper sales, revenue from out of home advertising, revenue from event
management, job charges, scrap and waste paper sale, magazine/supplement sale
and also revenue from SMS service. It had a growth of 24.48% over the previous
year, which was contributed by increases in almost all revenue streams.
Advertisement revenue grew from Rs. 3088.3 millions to Rs.3882.2 millions,
registering an increase of 25.70%, which is higher than the print Industry's
overall growth rate of 22.8% in the calendar year 2006. This growth in
advertisement revenue is attributed to the increase in card rate, increased
focus on local markets and increase of about 18% in colour advertisement space
over the previous year. Newspaper sale increased from Rs.1603.7 millions to
Rs.1678.3 millions, an increase of over 4.65%, inspite of reduction in cover
price in
Revenue from out of home advertising which was virtually started in current
year and revenue from event management activities increased from Rs.28.2
millions to Rs.300.3 millions.
Other Income:
It primarily comprises of earnings on and from investments
of IPO proceeds pending utilization, treasury income, miscellaneous income
representing write back of certain personal account balances considered no
longer payable etc., provision no longer required written back and bad debts
recovered. Except for earning on and from investment of IPO proceeds, others
are of recurring nature.
Notes
On Accounts:
1.
Contingent Liabilities no provided for:
|
Particular |
31.03.2007 (Rs. In Millions) |
31.03.2006 (Rs. In Millions) |
|
Demand received
from collector (stamp) Kanpur Nagar, |
11.000 |
Nil |
2. Capital Commitments:
|
Particular |
31.03.2007 (Rs. In Millions) |
31.03.2006 (Rs. In Millions) |
|
Estimated amount of capital commitments (Net of Advances Rs. 0.275 millions,
Previous Year Rs. 0.193 millions) |
371.731 |
438.693 |
1. Strong National
Brand:
Continued Number One position in terms of readership for past 6
successive rounds of IRS and constantly
increasing gap from the closest competitor (Source: IRS).
First publication in the history of country to cross mark of 20 million
readers (Source NRS 2005).
Number one newspaper in terms of readership in almost all IRS categories
considered important by the
advertisers.
Highest circulation among all daily newspapers (Source: ABC certified
figures for July-December 2005).
The most credible newspaper brand in the country (Source: Globscan
Survey commissioned by BBC and
Reuters made public in May 2006)
"Dainik Jagran" becoming one of the "SUPER BRANDS"
of the country.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government official
or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.70 |
|
|
1 |
Rs80.10 |
|
Euro |
1 |
Rs.56.09 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
59 |
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 |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|