MIRA INFORM REPORT
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Report Date : |
21.04.2011 |
IDENTIFICATION DETAILS
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Name : |
RELIANCE BROADCAST NETWORK LIMITED (w.e.f. June 17, 2010) |
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Formerly Known
As : |
RELIANCE MEDIA WORLD LIMITED |
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Registered
Office : |
401, 4th Floor, Infiniti, |
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Country : |
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Financials (as
on) : |
30.09.2010 |
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Date of
Incorporation : |
27.12.2005 |
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Com. Reg. No.: |
11-158355 |
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CIN No.: [Company Identification
No.] |
L64200MH2005PLC158355 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMR19417G |
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PAN No.: [Permanent Account No.] |
AADCR1885L |
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Legal Form : |
Public limited liability company. The shares of the
company are listed on Stock Exchanges. |
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Line of Business
: |
Broadcasting of Satellite Channels |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (44) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 9853000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Reliance Group, The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DECLINED BY
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Name : |
Mr. Gururajaj Rao |
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Designation : |
Company Secretary, Manager and Finance Controller |
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Contact No.: |
91-22-30689444 |
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Date : |
19.04.2011 |
LOCATIONS
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Registered Office : |
401, 4th Floor, Infiniti, |
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Tel. No.: |
91-22-30689444 |
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Fax No.: |
91-22-39888927 |
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E-Mail : |
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Website : |
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Head Office : |
H-Block, 1st Floor, Dhirubhai Ambani Knowledge Centre, Navi
Mumbai - 400 710, |
DIRECTORS
As on 30.09.2010
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Name : |
Mr. Gautam
Doshi |
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Designation : |
Director |
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Name : |
Mr. Rajesh
Sawhney |
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Designation : |
Director |
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Name : |
Mr. Anil
Sekhri |
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Designation : |
Director |
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Name : |
Mr. Darius
Jehangir Kakalia |
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Designation : |
Director |
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Name : |
Mr. Pradeep
Shah |
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Designation : |
Director |
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Name : |
Mr. Prasoon
Joshi |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Gururajaj Rao |
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Designation : |
Company Secretary, Manager and Finance Controller |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
holding |
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(A) Shareholding
of Promoter and Promoter Group |
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50,747,997 |
63.87 |
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50,747,997 |
63.87 |
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Total
shareholding of Promoter and Promoter Group (A) |
50,747,997 |
63.87 |
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(B) Public
Shareholding |
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|
33,050 |
0.04 |
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|
441,994 |
0.56 |
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|
475,044 |
0.60 |
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11,563,928 |
14.55 |
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8,101,754 |
10.20 |
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8,359,125 |
10.52 |
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|
203,322 |
0.26 |
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|
203,225 |
0.26 |
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|
97 |
- |
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28,228,129 |
35.53 |
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Total Public
shareholding (B) |
28,703,173 |
36.13 |
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Total (A)+(B) |
79,451,170 |
100.00 |
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(C) Shares held by
Custodians and against which Depository Receipts have been issued |
- |
- |
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- |
- |
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- |
- |
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- |
- |
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Total
(A)+(B)+(C) |
79,451,170 |
- |
BUSINESS DETAILS
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Line of Business : |
Broadcasting of Satellite Channels |
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GENERAL INFORMATION
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No. of Employees : |
832 (Approximately) |
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Bankers : |
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Facilities : |
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Banking Relations
: |
-- |
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Auditors : |
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Name : |
Chaturvedi and Shah Chartered Accountants |
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Address : |
714-715 Tulsiani Chambers, 212 Nariman Point, Mumbai – 400 021, |
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Subsidiaries : |
Reliance Television Private Limited (w.e.f. 16 August, 2010) |
CAPITAL STRUCTURE
As on 30.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
150000000 |
Equity Shares |
Rs.5/- each |
Rs.750.000 millions |
|
100000000 |
Preference Shares |
Rs.5/- each |
Rs.500.000 millions |
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Total |
|
Rs.1250.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
79451170 |
Equity Shares |
Rs.5/- each |
Rs.397.256
millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
01.04.2010 to
30.09.2010 (6 Months) |
01.04.2009 to
31.03.2010 (12 Months) |
01.04.2009 to
31.03.2009 (12 Months) |
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|
SHAREHOLDERS FUNDS |
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1] Share Capital |
397.256 |
230.631 |
10.550 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
4096.852 |
1440.174 |
104.606 |
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4] (Accumulated Losses) |
(2030.763) |
(1736.590) |
0.000 |
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NETWORTH |
2463.345 |
(65.785) |
115.156 |
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|
LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
3041.259 |
3065.617 |
0.000 |
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TOTAL BORROWING |
3041.259 |
3065.617 |
0.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
5504.604 |
2999.832 |
115.156 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2249.024 |
2420.013 |
0.069 |
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Capital work-in-progress (Including Capital Advances) |
83.352 |
65.917 |
0.000 |
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INVESTMENT |
10.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
36.401
|
3.423 |
0.000 |
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Sundry Debtors |
657.034
|
705.255 |
0.000 |
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Cash & Bank Balances |
2605.179
|
120.978
|
118.503
|
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
799.500
|
523.157
|
14.970
|
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Total
Current Assets |
4098.114
|
1352.813
|
133.473 |
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|
Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
715.129 |
558.895 |
0.065
|
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Other Current Liabilities |
190.505
|
252.957
|
17.523
|
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Provisions |
30.252
|
27.059
|
0.798
|
|
Total
Current Liabilities |
935.886
|
838.911
|
18.386 |
|
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Net Current Assets |
3162.228
|
513.902
|
115.087
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
5504.604 |
2999.832 |
115.156 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
01.04.2010 to
30.09.2010 (6 Months) |
01.04.2009 to
31.03.2010 (12 Months) |
01.04.2009 to
31.03.2009 (12 Months) |
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SALES |
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Service Revenue and Other Operating Income |
1084.387 |
1807.247 |
0.000 |
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Other Income |
20.691 |
40.662 |
11.132 |
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|
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TOTAL (A) |
1105.078 |
1847.909 |
11.132 |
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|
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Less |
EXPENSES |
|
|
|
|
|
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Direct Costs |
489.548 |
|
0.174 |
|
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Personnel Costs |
261.573 |
450.074 |
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Other Operating and General Administrative Expenses |
329.867 |
731.629 |
|
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|
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Amortisation |
83.563 |
166.001 |
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|
TOTAL (B) |
1164.551 |
2135.540 |
0.174 |
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|
|
|
|
|
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|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(59.473) |
(287.631) |
10.958 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST &
FINANCIAL EXPENSES (D) |
135.443 |
275.434 |
1.628 |
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|
|
|
|
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|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(194.916) |
(563.065) |
9.330 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION (F) |
99.066 |
198.202 |
0.016 |
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|
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|
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|
PROFIT BEFORE
TAX (E-F) (G) |
(293.982) |
(761.267) |
9.314 |
|
|
|
|
|
|
|
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|
Less |
TAX (H) |
0.191 |
0.000 |
3.215 |
|
|
|
|
|
|
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|
|
PROFIT AFTER TAX
(G-H) (I) |
(294.173) |
(761.267) |
6.099 |
|
|
|
|
|
|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
-- |
-- |
8.057 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(294.173) |
(761.267) |
14.156 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
|
-- |
4.135 |
NA |
|
|
|
Event Income |
-- |
1.175 |
NA |
|
|
TOTAL EARNINGS |
-- |
5.310 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
-- |
0.199 |
NA |
|
|
TOTAL IMPORTS |
-- |
0.199 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(6.35) |
(24.90) |
2.89 |
|
KEY RATIOS
|
PARTICULARS |
|
01.04.2010 to
30.09.2010 (6 Months) |
01.04.2009 to
31.03.2010 (12 Months) |
01.04.2009 to
31.03.2009 (12 Months) |
|
PAT / Total Income |
(%) |
(26.62)
|
(41.20)
|
54.78
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(27.11)
|
(42.12)
|
83.66
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(4.63)
|
(20.18)
|
6.97
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.12)
|
11.57
|
0.08
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.61
|
(59.35) |
0.15
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.38
|
1.61 |
7.25
|
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
30.09.2010 (Rs. in millions) |
31.03.2010 (Rs. in millions) |
31.03.2009 (Rs. in millions) |
|
Sundry Creditors for Goods and Services |
715.129 |
558.895 |
0.065
|
|
|
|
|
|
Note:
Registered office of the company has been shifted from H-Block, 1st Floor, Dhirubhai Ambani Knowledge City, Thane Belapur Road, Navi Mumbai, Maharashtra, India to the present address w.e.f. 30.06.2009
HISTORY:
Subject is a multi-media conglomerate with play across radio, television, out of home and live entertainment. It is part of the Reliance ADA Group and specializes in creating and executing integrated solutions for brands. The Company was originally incorporated as Reliance Unicom Limited on December 27, 2005 under the Companies Act, 1956 with CIN U64200MH2005PLC158355. October 6, 2006 - Change of object clause by replacement of Main Objects of the Company to undertake Radio Business. October 6, 2006 - Change of Name Form Reliance Unicom Limited to Big Radio Limited. April 25, 2007 - Equity share of the face value of Rs. 10/- each fully paid up was divided into equity share of Rs. 5/- each fully paid up. Increase in Authorised Share Capital from Rs.0.500 million divided into 50,000 Equity Shares of Rs.10/- each to Rs.10.550 millions comprising of 21,10,000 Equity Shares of Rs. 5/- each. September 18, 2007 - Change of Name Form Big Radio Limited to Reliance Unicom Limited. July 17, 2009- Increase in Authorised Share Capital from Rs.10.550 millions divided into 21,10,000 Equity Shares of Rs.5/- each to Rs.1000.000 millions comprising of 10,00,00,000 Equity Shares of Rs.5/- each and 10,00,00,000 Preference Shares of Rs. 5/- each. July 22, 2009- Change of Name from Reliance Unicom Limited to Reliance Media World Limited. 2010- Reliance Media World Limited's radio division BIG 92.7 FM has entered into a partnership with India's largest telecom VAS provider, OnMobile Global Limited, to launch the radio experience on the mobile platform. - Reliance World, in association with robo.in, a division of ThinkLABS, announced the launch of Robocamp. - The name of the Company has been changed from Reliance Media World Limited to Reliance Broadcast Network Limited with effect from June 17, 2010 - Anil Dhirubhai Ambani Group-company, Subject has entered into a 50:50 Joint Venture (JV) with US-based CBS Corp to own and operate TV channels. - Subject has successfully completed its final negotiations with CBS Studios Inc (CBS), a division of CBS Corporation and executed the Joint Venture Agreement in connection with owning and /or, operating, marketing and promoting a portfolio of primary linear pre-programmed television channels in India , Nepal , Bhutan , Sri Lanka , Bangladesh , the Maldives and Pakistan - BIG CBS announces launch of the first of its three channels with BIG CBS Prime - Reliance Broadcast Network's Big Digital Launches India's first ever talk Internet Radio 'Big Net Radio. - Reliance Broadcast Network and CBS Studios International announce the launch of the JV's first English Entertainment Channel in India 2011 - Reliance Broadcast titled 92.7 Big FM announces its official radio partnership for the ICC Cricket World Cup 2011. - RBNL's 92.7 BIG FM inks strategic sales and marketing alliance with Bhutan - Subject, STAR India and Indian Music Academy join hands to launch India - Reliance Broadcast Network and CBS Studios International's 2nd Channel, BIG CBS Love to go on air from March 21st.
FINANCIAL
PERFORMANCE
The Financial
Results covered and forming part of this Report include 6 month period from
April 1, 2010 to September 30, 2010.
As such the
Accounts for the period ended September 30, 2010 shall not be strictly
comparable with that of the previous year/s.
The total income
from operations of the Company for the year ended September 30, 2010 (6 months)
was higher at Rs.1084.387 millions recording an increase of 20% over the
previous period on an annualized basis. Other income was Rs.20.691 millions.
The operating
profit i.e. Profit before Depreciation Interest and Tax of the Company for the
year ended September 30, 2010 was Rs.24.090 millions. The overall net loss of
the Company was Rs.294.173 millions primarily on account of depreciation and
amortization of Rs.182.628 millions and interest cost of Rs.135.443 millions.
REVIEW OF
OPERATIONS
The Company is one
of
As of September
30, 2010, the Company was ranked second amongst FM radio networks in
The Company has
created the following Intellectual Properties in the period: BIG Bangla Music
Awards, BIG Kannada Music Awards, BIG Marathi Music Awards, BIG Punjabi Music
Awards, BIG Ugadi Music Awards, Asli No.1, Gujarati Entertainment Awards and
Oriya Entertainment Awards. This series of
The Company has
also entered the television broadcasting segment during the period and
successfully launched BIG CBS Prime in November 2010 under BIG CBS Networks Private
Limited, a Joint Venture between their Wholly Owned Subsidiary and CBS Studios,
PREFERENTIAL
ALLOTMENT
The Company has on
September 30, 2010, made allotment of 1,29,50,000 equity shares of Rs.5/- each fully
paid up to various investors and 2,03,75,000 equity shares of Rs. 5/- each
fully paid up to the Promoter Group, at a price of Rs. 85/- (including a
premium of Rs. 80/-) per equity share pursuant to the special resolution passed
by the shareholders at their Extraordinary General Meeting held on September
25, 2010.
Consequent to the
aforesaid allotment, the paid up capital of the Company stands increased to
Rs.397.256 millions comprising of 79,451,170 equity shares of Rs. 5/- each
fully paid up.
MANAGEMENT DISCUSSION AND ANALYSIS
Forward looking
statements:
The financial
statements have been prepared in compliance with the requirements of the
Companies Act, 1956 and Generally Accepted Accounting Principles (GAAP) in
Such statements
are not, and should not be construed, as a representation as to future
performance or achievements of subject. In particular, such statements should
not be regarded as a projection of future performance of subject. It should be
noted that the actual performance or achievements of subject may vary significantly from such
statements.
INDUSTRY STRUCTURE
AND DEVELOPMENTS
Global Economic
Overview:
Global economic
activity in the second half of 2010 turned out to be stronger than earlier
expectations. However, the uneven pace of growth across regions and uncertainty
about the durability of recovery in the advanced economies persist. The
positive sentiments arising from the growth momentum in major advanced
economies was neutralized by the persistence of high unemployment and downside
risks from weak housing markets and unfinished deleveraging. The combination of
developments resulted in additional policy stimulus. While in the
Emerging Market
Economies (EMEs), which had recovered ahead of the advanced economies,
exhibited robust growth momentum driven by domestic demand. Inflation and
overheating risks have, however, prompted monetary tightening at varied pace.
Commodity prices also firmed up, largely reflecting easy liquidity conditions
in advanced economies, as well as growing demand pressures in EMEs. The
asymmetry in monetary and liquidity conditions between the advanced and the
emerging economies and the imbalance in their growth outlook have led to larger
capital inflows to EMEs. The familiar policy challenges of asset price inflation
and upward pressure on exchange rates have re-emerged. A number of EMEs
resorted to soft capital controls and exchange market intervention to limit the
adverse impact of excess capital inflows on their economies.
Indian Economic
Overview:
The services
sector has been at the forefront of the rapid growth in the Indian economy.
As per the Central
Statistical Organization (CSO), Ministry of Statistics and Programme
Implementation:
• Trade, hotels,
transport and communication grew 12.2 %in April-June 2010 over the
corresponding quarter from a year earlier
• Similarly,
financing, insurance, real estate and business services grew at 8 %in the
first-quarter of 2010-11
• Community,
social and personal services grew by 6.7 % during April-June 2010-11.
Also, services
sector is projected to expand by 10% as compared to 8.6 % last year, led by the
trade and transport segment. The major turnaround is expected from the
agriculture and allied sector, which is being projected to grow by 5.7 % in
2010-11.
Indian Media and
Entertainment Industry overview:
The Indian radio
industry has a strong growth potential, if mechanisms and policies are put in
place to provide it with appropriate support.
The media spends
comprises of spends on films, television, print, radio, music, animation and VFX,
Gaming, internet and outdoor.
Segment-wise Break up of E and M Industry (2014)
The size of the
OOH industry was around Rs.12.5 billion in 2009 and is projected to reach Rs.
21 billion in 2014. Its share in the total ad pie is expected to go down marginally
to 5.6% in 2014. The industry which showed the highest dip in 2009 is set to
rebound owing to introduction of new measurement tools and higher proliferation
of digital screens which helps in increasing user interactivity.
OOH is moving
towards digitization, with more and more OOH screens being updated to LED or
digital sign boards. It is estimated that there are over 6000- 6500 screens.
These digital sign boards can be updated remotely depending on the changing
customer needs. Moreover, they are considered to be far more engaging with the
customers and give more flexibility to the advertisers to interact with the
customers. The digital OOH advertising it is expected to excel with more
players getting into interactive forms of OOH media.
The report expects
the radio industry to grow at a CAGR of 12.2 % by the year 2014 and reach a
size of Rs.16000.000 millions. Key drivers of this growth include increase in
the number of radio stations in Phase 3, expected regulatory reforms that are
likely to improve profitability and stimulate foreign investments, enhancement
of current measurement systems and growth in locally targeted advertising.
Event management industry also called the Live entertainment industry,
on which subject is now enlarging focus by its Experiential Marketing team BIG
LIVE, is largely fragmented but is purported to be growing on a fast track. The
revenue from this segment is classified under BTL category.
This industry has
an enormous growth potential riding on the increasing importance of Tier II and
Tier III cities and rural
The outlook on the
growth of the Indian media and entertainment industry is fairly optimistic
based on the following growth drivers:
Overall economic
growth and continued development of the Indian economy clubbed with
The outlook on the
growth of the Indian media and entertainment industry is fairly optimistic
based on the growth drivers like growth in advertising spends as firms increase
advertising outlay to reach their target audiences, increased penetration of
media vehicles translating to higher advertising spends and higher consumption
of media products. The wider availability of digital distribution platforms to
effectively monetize content and expanding international markets for Indian
content also contribute to the same.
Regionalisation is
likely to be one of the significant factors driving growth with growing
increase in literacy, consumption and disposable incomes in Tier 2 and 3
cities. Advertisers are also increasing focus on rural markets due to the
saturation of urban markets.
Convergence and
impact of the new media like IPTV, online newspapers and magazines, podcasts,
Wi-max, new video formats, internet streaming etc will benefit media players.
Advertisers are looking at multiple delivery platforms for content to break
through the clutter in existing platforms. The new media devices would lead to
emergence of new models for advertisement and subscription.
About Subject:
Subject is part of
the Reliance ADA Group. One of
92.7 BIG FM - the radio brand
pioneered the spread of FM entertainment with the launch of its 45 station
network, reaching out to over 200 million Indians; BIG Live – the experiential
marketing wing of the Company covers activations, events, intellectual
properties and rural marketing; BIG Street – in the business of out of home
media; and BIG Digital – an initiative in the digital space offering Content
and digital marketing solutions. BIG CBS– the television foray of the Group
will see the launch of 3 English entertainment channels in
Key Performance
Indicators of FY ended 30th September, 2010 over same period
previous year:
• A 18 % market
share makes BIG FM one of the largest media / radio players in the country
• Retail revenues
have seen a healthy growth of 15 %
• Inventory
utilization in tier II and III cities experienced over 65% growth while
utilization in tier I grew by 38%
• Key stations
like
• A 59% increase
in listenership as per RAM’s new Baseline study for Metro cities.
• Audience ranking
showed growth by 5.9 % in listenership for BIG FM national [IRS]
• Growth in BIG
Street’s revenues by 50%
Segment wise
Analysis:
FM Radio
Broadcasting:
92.7 Big FM
92.7 BIG FM is
92.7 BIG FM leads
in Bengaluru and Kolkata in the listenership. Most importantly, they deliver
the highest reach across the five Metros i.e., (Mumbai,
As per weekly RAM
data released over the six months from April to September 2010, 92.7 Big FM has
maintained consistent ranking in the 4 markets where the Radio Audience
Measurement operates. It is the leader in
The Top 15
Exclusive Advertisers on BIG FM from April 2010 to January 2011 are as
follows:-
• Torque Pharma
• Kesoram
Industries Limited
• Rotomac Global
Private Limited
• Shivek Labs
• Alchemist
Limited
• Hayagrivas Silk
House
• Bhawani Textiles
• Mankind Pharma
Limited
• Agri Gold
Organics Private Limited
• Kunnath
Pharmaceutical
• Amara Raja
Batteries Limited
• The Loot
• Shri Lakshmi Cotsyn
Limited
• Fans On Stands
Sports Private Limited
• Goldie Masale
Private Limited
- Top 5 exclusive
advertisers have contributed to over 85,000 sec per month across Metros from
April ’10-Jan ’11, contributing to about 5% of inventory fi ll.
- Out of total
1468 advertisers on BIG (metros), 393 were exclusive advertisers i.e. 27% and
they contributed to about 12% of inventory burn on BIG.
- Total 393
advertisers did exclusive campaign on BIG FM out of 5403 advertisers Radio i.e.
7% advertisers were exclusive on BIG FM.
- Exclusive
advertisers burnt about 2% FCT on BIG FM of total Radio burn.
AWARDS AND RECOGNITIONS:
• LINTAS TRUE
Award 2007:Fastest reach build up by a media brand
•
•
• IRF – Promax
Awards 2009 – Won over 15 awards in the last 2 years
•
•
•
• Exchange4Media
Radio Advertising Awards 2010 – 92.7 BIG FM won 2 awards
The revenues for
Radio Broadcasting - for FY ended September 30, 2010 stood at Rs.793.700
millions.
Big Live -
Experiential Marketing Arm: Big Live is in the business of creating and
managing Ground Activations, Rural Activations, Multi Brand engagement
IP Activation. Under the Big Live IP Property umbrella multi brand
engagement has developed several IPs which include, Big Star Entertainment
Awards, Regional Telivision Awards – Marathi, Telugu, Kanada and Bangla,
Regional Entertainment Awards – Oriya, Gujarati, Regional Music
Awards – Punjabi, Kanada, Bangla, Marathi and Telugu. Coming up is Big
Star IMA awards which is the Music awards in association with
Big LIVE - Activation
provides promotions / solutions to clients across the nation, along with ‘On
Air’ amplification. Some of the winning activations have been produced since
inception. Few of the key activations done during the year are WagonR Smart
Challenge (7 cities), Dabur Chawanprash School Champs (12 cities), Nokia 5800 –
Xpress Music (Winner of Prestigious Cannes Award), NIIT – Hunt for the Network
Kings (5 Metro), Good Year Long Drive 20 City Car Rally, Cadilla Sugar Free –
Sampling at parks, Thums Up – Thunder Wheels License Hai Kya (13 Cities
activity), Mountain Dew – Darr ke aage jeet hai, Goa Beach, Nestle Milky Bar
School Activation (7 Cities), Coca Cola retail promotion across 700 outlets,
COCA Cola FIFA activation, Nutrbar gym, corporate contact programme, Colors
Khatron Ke Khiladi 6 city launch activation.
BIG Live - Events
Big Live Events is
one stop solution for all innovative events’ requirements including
Conceptualizing, Planning and Implementation of Corporate events, Live events,
MICE and Special Events (Weddings, fairs). The clientele is from media
companies, corporate houses, Banking, Financial Services, Insurance Sector and
major consumer durable companies, Consulates and trade commissions etc. The
event is taken on a turnkey basis with in house teams for servicing, creative
and operations. Major Events executed during the year 2009-10 include Zee Nite
Bangkok, MAMI Films Festival, Rehman Unplugged, Pushkar Mela, Sur Sangam Finale,
Suraj Kund Mela 2010, Raavan Music launch in Yashraj studio and execution of
Big Live IP events like BIG IMA Music Awards, TV Biggies across all markets,
BIG STAR Entertainment awards etc. Keeping in mind the growing industry trends
and client requirements, BIG LIVE- Events would be shifting the focus on
developing large scale live entertainment event properties, that can be
monetized through sponsorship, ticketing revenue and alternate revenues such as
TV rights, merchandise, digital rights etc. BIG Live events would operate in
the space of Multicity concerts of Indian/International artistes, large
entertainment events like musicals/show. The end to end of these events would
be undertaken by the BIG Live events team.
In a historic,
collaboration between media conglomerate STAR India Private Limited their
Company announced its alliance to offer India clutter breaking, pioneering and
unique entertainment, never witnessed before! Marking the first of a slew of
properties, from this alliance was the
‘BIG STAR
Entertainment Awards’ India’s FIRST Entertainment awards that sought to
create a unique platform which honors entertainers across genres viz. Movies,
Music, Television and Sports. India’s first ever ‘people’s award’ – right from
nominations to the final winners, The BIG STAR Entertainment Awards reached
out to Indians across the country through each of the media platforms of both
Companies, ensuring multiple touch points to audiences. It got a TVR rating of
5.78 which is the highest for any award in this season.
BIG STAR
Entertainment Awards has been conceptualized by the Company’s
experiential marketing arm, BIG LIVE. This is the first award platform
that democratizes the awards platform by giving audiences the opportunity to
nominate their favorites personalities in Movies, Music, Theatre and Sports in
the award categories. Some of the USP’s
• For the first
time ever, Entertainers being honored across platforms.
• An award where
enter tainers and entertainment are judged by the people, no ‘Jury’, no ‘Experts’.
Absolutely transparent.
• Celebrating
Entertainers from the last decade as well as this year
• A holistic
property supported by multi-media promotions across relevant markets pan
• A Grand Finale
which will feature, the who’s who of the world of Entertainment.
The Big Star
Entertainment Awards was promoted through a number of high-decibel marketing
and BTL initiatives with a holistic approach, ranging from on-ground,
off-ground, television, radio and digital activities. Audience opinion (through
SMS and online voting) selected the nominees and winners across the categories.
The revenues for
Experiential Marketing for FY ended September 30, 2010 stood at Rs.182.100
millions.
Rural Activations is
reaching rural consumers through rural touch points like Mandis, Haat, Fairs
and Festivals. It is capitalizing on the strength and reach of BIG FM across
52000 villages. It plans to tap the vast and under penetrated rural markets.
The rural consumption in 2002 amounted to 4700000.000 millions, which is 60% of
Rural Activations
is laying the foundation for a more evolved and urbanized rural
OOH Business
The OOH industry
has grown by 15.3% in the last 4 years with impetus given to infrastructure
development, which has led to the emergence of new sites and retail media as
key drivers for this growth. In the last two years, outdoor companies have
started investing in basic infrastructure development in lieu of media rights
to those properties in concurrence with local and municipal bodies. The OOH
industry stood at Rs.17 billion in 2010 and grew by 36% from Rs. 12.5 billion
in 2009 to form 7% of the total advertising pie.
BIG Street, the
Out of Home media division was started in April 2008. BIG Street acquires
Outdoor assets and marketing rights and markets them to various advertisers,
advertising agencies and business retailers. BIG Street is committed to
redefine OOH market through use of technology and product innovation. BIG
Street identifies and acquires premium properties at reasonable prices. Their
current portfolio consists of strategic, selective and high impact media like
Delhi Metro Rail – Line II inside platform, Civil structures in DMRC Line II,
Line II-Extension inside station, Line III inside station branding. Airoli –
Pole Kiosks and Gantries, Mobile Vans at
They also have
exclusive marketing tie ups for 50 LED screens across
BIG Street also
added premium inventory on the prestigious Delhi Airport Metro Express thus
enabling brands to reach out to Air Travelers in and out of
In addition to the
above they have commissioned street furniture inventory across more than 20
Kms. of Roads across Delhi 20 digtal information kiosks with 65 inch High
Definition Advertising Screens across key stations of DMRC and the top malls in
Delhi
In future the
Company plans to focus on long term low risk high return PPP projects. They
will go for scale through step by step approach. They will maximize marketing
and sales strength for more exclusive marketing tie-ups. The revenues for Out
Of Home business for Financial Year ended 30th September 2010 stood
at Rs 89.600 millions.
Other Businesses
BIG Digital
BIG Digital, is the Company’s
initiative in the digital space. BIG Digital creates and strengthens value propositions
for internal and external customers while providing a surround of digital media
integrations – including Content and Digital marketing services. With the
vision to be the first port of recall for quality content deployed in a
service-agnostic environment, BIG Digital offers integration across all GSM and
CDMA operators across India through short code 55454.
Big Digital
services the vast mobile and online consumer with innovative and exclusive,
highly engaging content.
As a business it
has great potential to grow exponentially and the way forward will see focus on
digital IP content and content acquisitions. Given their lineage in music
through their radio business 92.7 BIG FM, BIG Digital has the potential to
leverage the music expertise and offer the mobile and online consumer an
exclusive digital experience. They work closely with artists to create and
market specific highly talented musicians from across
Going forward,
they will see BIG Digital play an increasing role in the multi-media strength
of subject.
BIG Digital, announced the
launch of BIG Mobile Radio, the best ever radio experience on mobile,
with IDEA Cellular, through its alliance with India’s largest
telecom VAS provider, OnMobile Global Limited This strategic alliance
allows 92.7 BIG FM enhanced reach to the 65 million rich consumer
base of IDEA Cellular across India. Leveraging its expertise in audio
content through its programming in local languages across its 45 station
network, BIG FM offers the service on 557557 on IDEA, Tata Docomo, BSNL
and Reliance in 9 languages including Hindi, Bengali, Tamil, Marathi,
Telugu and Malayalam and will soon add more languages taking the
total count of language options to 17. In addition to the rich content,
the USP of this offering is its ad-free stream and its interactive
programming; ensuring listeners get true value for money.
This service allows users to listen to their favorite programmed channels
regardless of their location. For example, a Tamil listener in Mumbai
will be able to listen to native-language programming on BIG Mobile Radio
at the dial of the number.
BIG Digital also helped
in augmenting the revenues of the Radio Broadcasting Segment via SMS short code
and key word income. The revenues from digital - for FY ended September 30,
2010 stood at Rs 14.100 millions.
BIG CBS Networks
Private Limited (BIG CBS) - Television:
Subject and CBS
Studios International, a division of CBS Corporation, announced their equally
owned joint venture – BIG CBS Networks Private Limited. This venture has the
programming rights to launch three new television channels in English
entertainment space and customized for the Indian market. Out of the three
channels, one channel viz. BIG CBS PRIME was launched on 29th November 2010.
The second channel called BIG CBS LOVE will be launched in March 2011 and the
third channel viz. BIG CBS SPARK is scheduled to be launched in April 2011.
These are Category creators, and will serve to offer to the Indian viewers a
different perspective of how TV is watched. These channels would offer Indian
audiences immediate window to consume new and concurrent CBS programs. The
channels are targeted at
BIG CBS Networks,
within a short period, has already become one of most widely Distributed
Channel in
In fact, the BIG
CBS channel has already signed up its first Subscription deal, which is very
creditable, vis-ŕ-vis any of the contemporary channels. This is first time in
the history of Indian television, that the top international shows will telecast
almost concurrent to the
Business Outlook
The outlook for
media advertising in 2011 appears extremely positive in
Growth in the
industry is expected to be driven by growth in both subscription and
advertising revenues. The subscription market is likely to be driven by
enhanced penetration and expansion of digital delivery infrastructure. Rising
disposable incomes of the working population and increased spend on
discretionary items, not only in Tier 1 but also Tier 2 and 3 cities is
expected to continue impacting the M and E industry favorably. Also, growth of
newer delivery platforms with superior technology and functionality is likely
to expand horizons for the M and E business. Aspirations of Indian players to
go global and foreign players entering the industry are likely to help the
industry target a double digit growth in next five years. The role of the new
media is becoming increasingly important in the distribution portfolio of
advertisers. A strong focus on talent development, consumer research and
innovation can help players in differentiating themselves amidst growing
competition.
FORM 8
|
Corporate
identity number of the company |
L64200MH2005PLC158355 |
|
Name of the
company |
RELIANCE BROADCAST NETWORK LIMITED |
|
Address of the
registered office or of the principal place of business in |
401, 4th Floor, Infiniti, |
|
This form is for |
Creation of
charge |
|
Type of charge |
|
|
Particular of
charge holder |
Yes Bank Limited Address: 9th Floor, Nehru Centre, Discovery of Email: shareholders@yesbank.in
|
|
Nature of
instrument creating charge |
Deed of
Hypothecation |
|
Date of
instrument Creating the charge |
23.01.2010 |
|
Amount secured by
the charge |
Rs.200.000
millions |
|
Brief of the principal
terms an conditions and extent and operation of the charge |
Rate of interest Commission: 1.25%
per anum plus taxes as applicable payable annually in advance for nun funded
faciltiy CC Limit- as
mutually decided Terms of repayment Not Applicable Margin 1. On SLC
amounting to Rs.200.000 millions and
ULC, LOU for BC, PBG, FBG being the Sub limit of SLC to the extent of
Rs.200.000 millions 20% Cash Margin in
the form of Fixed Deposit. 2. On Cash Credit
Facility as a Sub Limit of SLC amounting to Rs.50.000 millions - 25% Margin
on Book Debts upto 90 days. Extent and operation of the charge Exclusive charge
over whole of the Current Assets of the Company (as described in Schedule of
Deed of Hypothecation dated 23/01/2010). Other Not Applicable |
|
Short particulars
of the property charged (Including location of the property) |
Exclusive charge
over whole of the Current Assets of the Company (as described in Schedule of
Deed of Hypothecation dated 23/01/2010). |
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31ST
DECEMBER, 2010
(Rs. in millions)
|
Particulars |
Period (Unaduited) |
|
01.10.2010 to 31.12.2010 |
|
|
1. Income |
|
|
a) Net Sales / Income from Operations |
670.982 |
|
b) Other Operating Income |
19.943 |
|
Total Income |
690.925 |
|
2. Expenditure |
|
|
(a) Direct Operational Expenses |
214.302 |
|
(b) Experimental Marketing Expenses |
103.008 |
|
(c) Personnel Cost |
139.973 |
|
(d) Depreciation |
92.306 |
|
(e) Administration and Other Expenditure |
177.025 |
|
Total Expenditure |
726.614 |
|
3. Profit / (Loss) From Operations before other Income Interest & Exceptional Items (1-2) |
(35.689) |
|
4. Other Income |
11.457 |
|
5. Profit/(Loss) before Financial Charges and Exceptional items (3+4) |
(24.232) |
|
6. Financial Charges |
18.377 |
|
7. Profit / (Loss) after Financial Charges before Exceptional items (5-6) |
(42.609) |
|
8. Exceptional Items |
-- |
|
9. Profit / (Loss)
From Ordinary activities before Tax (7-8) |
(42.609) |
|
10. Tax Expenses |
-- |
|
11. Net Profit/(Loss) From Ordinary activities after Tax |
(42.609) |
|
12. Extraordinary Items |
-- |
|
13. Net Profit/(Loss) for the period (11-12) |
(42.609) |
|
14. Paid Up Equity Share Capital ( Face Value of the share Rs.5/- each ) |
397.256 |
|
15. Reserves (Excluding Revaluation Reserves) |
-- |
|
16a. Earning per
share for the period Before Extraordinary Items (In Rupees) |
|
|
-Basic / Diluted |
(0.54) |
|
16b. Earning per share for the period After Extraordinary Items (In Rupees) |
|
|
-Basic / Diluted |
(0.54) |
|
17. Public Share Holding |
|
|
- Number of Shares |
28703173 |
|
- Percentage of shareholding |
36.13 |
|
18. Promoters and
Promoter group share holding |
|
|
a) Pledged / Encumbered |
|
|
- Number of Shares |
-- |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
-- |
|
- Percentage of shares(as a % of the total share capital of the company) |
-- |
|
b) Non-encumbered |
|
|
- Number of Shares |
50747997 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
100.00 |
|
- Percentage of Share (as a % of the total share capital of the company) |
63.87 |
SEGMENTWISE
REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDED 31ST
DECEMBER, 2010
(Rs.
in millions)
|
Particulars |
Period (Unaduited) |
|
01.10.2010 to 31.12.2010 |
|
|
Segment Revenue/ Other Income |
|
|
a) Radio Broadcasting |
483.894 |
|
b) Outdoor |
60.515 |
|
c) Experimental Marketing |
126.587 |
|
d) Others |
19.944 |
|
Sub-Total |
690.940 |
|
Less: Intersegment Revenue |
0.015 |
|
Total |
690.925 |
|
Add: Others (unallocated) |
11.457 |
|
Total Income |
702.382 |
|
|
|
|
Segment Results (Profit/ (Loss) before Financial Charges and Tax) |
|
|
a) Radio Broadcasting |
22.123 |
|
b) Outdoor |
(37.502) |
|
c) Experimental Marketing |
(14.203) |
|
d) Others |
3.778 |
|
Total Segment Results |
(25.804) |
|
Less: Financial Charges |
18.377 |
|
Less: Other unallocable expense net of unallocable income |
(1.572) |
|
Total Profit before Tax |
(42.609) |
|
Capital employed (Segment Assets less Segment Liabilities) |
|
|
a) Radio Broadcasting |
2782.172 |
|
b) Outdoor |
279.220 |
|
c) Experimental Marketing |
57.569 |
|
d) Others |
4.014 |
|
e) Unallocated |
(702.240) |
|
Total |
2420.735 |
Notes:
1. In the previous year ended September 30,
2010, the Company has reclassified its experimental marketing segment covering
activations, events and intellectual properties. The segment fir the quarter
ended December 31, 2009 have been reclassified and regrouped to reflect the
change in segments.
2. Pursuant to approval of the shareholders in
the Extraordinary General Meeting held on September 25, 2010, the Company on
September 30, 2010, has allotted 12950000 equity shares of Rs.5/- each fully
paid up to various investors and 20375000 equity shares of Rs.5/- each fully
paid up to the Promoter Group at a price of Rs.85/- (including a premium of
Rs.80/-) per equity share. The details of funds raised through Preferential
Allotment and utilisation of said funds are as follows:
|
Particulars |
Rs. in millions |
|
Funds received through Preferential
Allotments |
2832.625 |
|
Utilisation of funds: |
|
|
Repayment of debt and accrued interest |
2331.599 |
|
Investment in Share Capital of Reliance
Television Private Limited, Wholly Owned Subsidiary |
111.000 |
|
Funding to Subsidiary Company for
acquisition of Channel Company and Operating Expenses |
21.396 |
|
Utilised for General purpose |
20.589 |
|
Total funds utilized |
2484.584 |
|
Fixed Deposits |
182.041 |
|
Investments in Mutual Funds |
166.000 |
3. After the end of the quarter, subject group
has entered into an agreement Imagine Showbiz Limited through a buy out of Cinestar
Advertising Private Limited.
4. After the review by the Audit Committee,
the Board of Directors of the Company have approved the financial results at
its meeting held on February 14, 2011. The statutory Auditors have carried out
a limited review of the Standalone results pursuant to Clause 41 of the Listing
Agreement.
5. There were no complaints from the investors
pending at the beginning of the quarter. The number of complaints received and
resolved during the quarter were Nil.
6. The figures for the previous year ended
September 30, 2010 comprises of 6 months. The figures for the previous period
have been regrouped/ rearranged wherever necessary to conform to the current
period’s presentation.
CONTINGENT LIABILITIES:
|
Particulars |
30.09.2010 (Rs. in
millions) |
|
Bank Guarantees |
145.671 |
|
Claims against the company not acknowledged as debt |
94.780 |
|
|
240.451 |
The company is a
party to various legal proceedings in the normal course of business and does not
expect the outcome of these proceedings to have any adverse effect on its
financial conditions, results of operations or cash flows.
FIXED ASSETS:
Tangible Assets
·
Plant and Machinery
·
Office Equipments
·
Furniture and Fixtures
·
Data Processing Equipments
·
Leasehold Improvements
·
Vehicles
Intangible Assets
·
Radio broadcasting license
·
Computer Software
·
Copyrights
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.44.38 |
|
|
1 |
Rs.72.55 |
|
Euro |
1 |
Rs.63.92 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
44 |
This score serves as a reference to assess SC’s
credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.