MIRA
INFORM REPORT
|
Report Date : |
24.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
TELEVISION EIGHTEEN INDIA LIMITED |
|
|
|
|
Registered Office : |
503,504 and 507, 5th Floor, Mercantile House, 15 Kasturba
Gandhi Marg, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
24.09.1993 |
|
|
|
|
Com. Reg. No.: |
55-55351 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L7489DL1993LC055351 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
DELT08969C |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAAC72659P |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The company shares are listed on
stock exchange. |
|
|
|
|
Line of Business : |
Subject is engaged as Broadcasters. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (59) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 39838300 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part of TVI8 group. It is a well established and reputed
company having fine track. Financial position of the company appers to be
sound. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered good for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION DECLINED BY
|
Name : |
Mr. Ish Kalra |
|
Designation : |
Finance General Manager |
|
Date : |
19.01.2011 |
LOCATIONS
|
Registered Office : |
503,504 and 507, 5th Floor, Mercantile House, 15 Kasturba
Gandhi Marg, |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
Express Trade tower, Plot No. 15-16, Sector -16 A, Noida, Uttar
Pradesh – 201301. |
|
Tel. No.: |
91-120-5341818,3987777 |
|
Fax No.: |
91-120-5324106 |
|
E-Mail : |
|
|
|
|
|
Mumbai Address : |
Empire Mills Complex, 4/4, Senapati Bapat Marg, Lower Parel, Mumbai –
400013, |
|
Tel. No.: |
91-22-6666-7777/66509580 |
|
Fax No.: |
91-22-6661 8980 |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Raghav Bahl |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P. N. Bahl |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Hari .S. Bhartia |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Manoj Mohanka |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sanjay Ray Chaudhuri |
|
Designation : |
Director |
|
Qualification: |
39 Years |
|
|
|
|
Name : |
Mrs. Vandana Malik |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Subhash Bahl |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. G. K. Arora |
|
Designation : |
Chairman |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of promoter
and Promoter Group |
|
|
|
1) Indian |
|
|
|
a) Individuals / Hindu Undivided Family |
3145779 |
1.74 |
|
2) Foreign |
|
|
|
a) Bodies corporate |
89128954 |
49.30 |
|
Trusts |
15036758 |
8.32 |
|
|
|
|
|
(B) Public Shareholdings |
|
|
|
1) Institutions |
|
|
|
a) Mutual Funds |
20353625 |
11.26 |
|
b) Financial Institutions/Banks |
300484 |
0.17 |
|
c) Foreign Institutional Investors |
11424927 |
6.32 |
|
|
|
|
|
2) Non – Institution |
|
|
|
a) Bodies corporate |
16004587 |
8.85 |
|
|
|
|
|
b) Individuals |
|
|
|
i. Individual Shareholders holding nominal share capital upto Rs.0.100
Million |
14471594 |
8.00 |
|
ii. Individual Shareholders holding nominal share capital in excess
Rs.0.100 Million |
9674706 |
5.35 |
|
|
|
|
|
c) Any other |
|
|
|
i) Non Resident Indian |
146158 |
0.08 |
|
ii) Overseas Corporate Bodies |
764610 |
0.42 |
|
iii) Trusts |
6023 |
0.00 |
|
iv) Clearing Members |
332200 |
0.18 |
|
|
|
|
|
Total |
180790405 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged as Broadcasters. |
|
|
|
|
Terms : |
|
|
Selling : |
Cash, Credit |
|
|
|
|
Purchasing : |
Cash, Credit |
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Chartered
Accountants |
|
|
|
|
Group Companies
: |
|
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
410000000 |
Equity Shares |
Rs. 5/- each |
Rs. 2050.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
181373230 |
Equity shares * |
Rs. 5/- each |
Rs. 906.866 millions |
|
|
Less : calls in arrears |
|
Rs. 6.019 millions |
|
|
|
|
|
Note:
a) 23113829
(Previous year 23113829) equity shares of Rs. 5 each have been alloted as fully
paid up without payments being received in cash
b) 62022906 (Previous year 62022906) equity shares
of Rs. 5 each have been alloted as fully paid up as bonus shares by
capitalising securities premium
* 84028954
(Previous year 53959106) equity shares of Rs. 5 each are held by Network18
Media & Investments Limited, the holding company and 500000
(Previous year 5100000) equity shares held by network18 India Holdings
Private Limited, a wholly owned subsidiary of the Holding company).
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
900.846 |
600.071 |
597.831 |
|
|
2] Employee stock options outstanding |
148.222 |
223.317 |
225.804 |
|
|
3] Reserves & Surplus |
8910.511 |
4645.732 |
4146.033 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
5}Equity warrants issued and subscribed |
0.000 |
0.000 |
199.000 |
|
|
NETWORTH |
9959.579 |
5469.120 |
5168.668 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2373.855 |
2252.707 |
1203.389 |
|
|
2] Unsecured Loans |
5720.949 |
6450.330 |
3959.594 |
|
|
TOTAL BORROWING |
8094.804 |
8703.037 |
5162.983 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
34.577 |
|
|
|
|
|
|
|
|
TOTAL |
18054.383 |
14172.157 |
10366.228 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
729.513 |
874.871 |
827.095 |
|
|
Capital work-in-progress |
1.561 |
2.411 |
35.213 |
|
|
|
|
|
|
|
|
INVESTMENT |
12198.933 |
7751.880 |
9019.187 |
|
|
DEFERREX TAX ASSETS |
74.559 |
124.974 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3.520
|
4.243 |
5.484 |
|
|
Sundry Debtors |
1329.431
|
1334.129 |
1334.926 |
|
|
Unbilled revenues |
40.462
|
37.400 |
47.211 |
|
|
Cash & Bank Balances |
2254.369
|
1367.378 |
1331.180 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
2906.772
|
4280.355 |
1304.991 |
|
Total
Current Assets |
6534.554
|
7023.505 |
4023.792 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1373.026
|
1445.504 |
3156.134 |
|
|
Current Liabilities |
70.806
|
134.694 |
248.567 |
|
|
Provisions |
40.905
|
65.942 |
138.602 |
|
Total
Current Liabilities |
1484.737
|
1646.140 |
3543.303 |
|
|
Net Current Assets |
5049.817
|
5377.365 |
480.489 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
40.653 |
4.244 |
|
|
|
|
|
|
|
|
TOTAL |
18054.383 |
14172.154 |
10366.228 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2769.071 |
2877.144 |
2922.211 |
|
|
|
Other Income |
630.867 |
1319.414 |
347.916 |
|
|
|
TOTAL (A) |
3399.938 |
4196.558 |
3270.127 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Production, administrative and other coasts |
1835.619 |
1910.167 |
1482.970 |
|
|
|
Personal expenses |
575.094 |
967.747 |
599.717 |
|
|
|
Long term investment |
0.000 |
98.659 |
57.219 |
|
|
|
TOTAL (B) |
2410.713 |
2976.573 |
2139.906 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
989.225 |
1219.985 |
1130.221 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1091.770 |
987.932 |
469.885 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(102.545) |
232.053 |
660.336 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
171.881 |
189.573 |
182.796 |
|
|
|
|
|
|
|
|
|
Add |
PRIOR PERIOD
ADJUSTMENT |
0.231 |
5.721 |
0.000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(274.193) |
48.201 |
477.540 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
50.562 |
(150.021) |
172.661 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
(324.755) |
198.223 |
304.879 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
399.209 |
101.523 |
42.320 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to Debenture Redemption Reserve |
0.000 |
14.552 |
92.965 |
|
|
|
Transfer Form Debenture Redemption Reserve |
0.000 |
(114.015) |
(150.000) |
|
|
BALANCE CARRIED
TO THE B/S |
74.453 |
399.209 |
101.523 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(2.45) |
NA |
NA |
|
SUMMARISED RESULTS
|
PARTICULARS |
|
30.06.2010 |
30.09.2010 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Sales Turnover |
|
647.27 |
680.08 |
|
Total Expenditure |
|
485.83 |
476.39 |
|
PBIDT (Excl
OI) |
|
161.44 |
203.69 |
|
Other Income |
|
229.20 |
251.04 |
|
Operating
Profit |
|
390.64 |
454.73 |
|
Interest |
|
226.13 |
210.16 |
|
Exceptional
Items |
|
0.000 |
0.000 |
|
PBDT |
|
164.51 |
244.57 |
|
Depreciation |
|
37.07 |
37.89 |
|
Profit
Before Tax |
|
127.44 |
206.68 |
|
Tax |
|
19.58 |
92.00 |
|
Reported PAT |
|
107.86 |
114.68 |
|
Extraordinary Items |
|
0.00 |
0.00 |
|
Prior Period Expenses |
|
0.00 |
0.00 |
|
Other Adjustments |
|
0.00 |
0.00 |
|
Net Profit |
|
107.86 |
114.68 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(9.55)
|
4.72 |
9.32 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(8.06)
|
1.14 |
14.60 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(4.19)
|
0.68 |
11.86 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.02)
|
0.00 |
0.09 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.14
|
0.30 |
0.68 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.40
|
4.26 |
1.31 |
LOCAL AGENCY FURTHER INFORMATION
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
|
|
|
|
-micro and small enterprises |
771.498
|
841.307 |
787.158 |
|
-other |
63.152
|
72.339 |
145.603 |
|
- due to subsidiary companies |
447.875
|
488.314 |
410.996 |
|
Advance from customers |
0.000
|
0.000 |
1791.000 |
|
Inventor Education and protection fund |
|
|
|
|
-unclaimed dividend |
1.013
|
1.018 |
1.279 |
|
- unclaimed debenture redemption money |
0.602
|
0.793 |
1.509 |
|
-unclaimed interest and matured public deposits |
88.886
|
41.733 |
18.589 |
|
-equity warrants refundable application money |
0.000
|
0.000 |
0.001 |
|
|
|
|
|
|
Total |
1373.026
|
1445.504 |
3156.134 |
Fixed Assets:
- Building
- Plant and
Machinery
- Furniture
- Vehicles
- Computer
software
OPERATIONS:
During the year
under review, the Company achieved a turnover of Rs. 2769.100 (Previous Year Rs.
2877.100 Millions) and EBDIT of Rs. 98.95 (Previous Year Rs. 1324.400
Millions).
The Company is a
full-fledged Indian broadcaster with properties like CNBC-TV18 and CNBC-Awaaz
alongwith two regular revenue streams – ‘commercial advertising’ and ‘cable
subscriptions’.
DEPOSITS
The Company’s
Fixed Deposits Scheme launched in terms of Section 58A of the Companies Act,
1956 is performing incredibly well since its inception and as on March 31, 2010
the Fixed Deposits of the Company stood at Rs. 1770.733 Millions.
The Company has
sent reminders to 569 deposit holders, who have not claimed repayment of their
fixed deposits which became due as on March 31, 2010, amounting to Rs. 19.792
Millions
There was no
failure in repayment of Fixed Deposits on the maturity and the interest due
thereon by the Company.
CHANGE OF
REGISTERD OFFICE
As approved by the
Board of Directors of the Company, the registered office of the Company was
shifted from 601, 6th Floor, Commercial Tower, Hotel Le- Meridien,
Raisina Road, New Delhi 110 001 to 503, 504 & 507, 5th Floor,
‘Mercantile House’, 15, Kasturba Gandhi Marg, New Delhi 110 001 w.e.f.
May 10, 2010.
INCREASE IN
AUTHORISED AND PAID-UP SHARE CAPITAL
THE COMPANY
During the year under
review the Authorised and Paid up share capital of the Company has been
increased in the following manner:
• Increase in the
Authorised Share capital
The Company had
given a postal ballot notice dated 13 May, 2009 to its shareholders pursuant to
Section 192A of the Companies Act, 1956 for reclassification of the authorised
share capital of the Company comprising of 20,00,00,000 equity shares of Rs. 5
per share and 5,00,000 preference shares of Rs 100 each aggregrating to Rs.
1050.000 Millions to 210,000,000 equity shares of Rs. 5 each aggregating to Rs.
1050.000 millions and for increasing the authorised share capital of the
Company from Rs 1050.000 Millions (comprising 210,000,000 equity shares of Rs 5
each) to Rs 2050.000 Millions (comprising 410,000,000 equity shares of Rs 5
each). The result of the postal ballot was announced on 22 June, 2009 whereby
the aforesaid resolutions were duly approved by the shareholders of the
Company.
Increase in the Paid up Share Capital
During the current
year the Company has made a rights issue of 60,007,121 equity shares of Rs. 5
each at a premium of Rs. 79 per share aggregating to Rs. 5040.598 Millions to
the existing shareholders of the Company. The rights issue opened on 29
September, 2009 and closed on 14 October, 2009. Pursuant to the approval dated
26 October, 2009 of the Right Issue Committee, the Company has allotted
60,007,121 partly paid equity shares of Rs. 5 each at the premium of Rs. 79 per
share. The Company had called Rs.21.00 per share on application and Rs. 29.40
per share and Rs. 33.60 per share were called on first call
and final call, respectively on the allotted shares. The rights issue resulted in an
increase in the equity share capital by Rs. 294.016 Millions and securities
premium by Rs. 4645.4.50 Millions. As on 31 March, 2010, there are partly paid
1979148 shares in respect of which calls are in arrears.
During the year
ended 31 March, 2010, the Company has allotted 1,351,876 equity shares of Rs. 5
each on account of exercise of ESOPs by the employees of the Company under
various ESOP schemes.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
INDUSTRY STRUCTURE AND DEVELOPMENTS
The Indian media & entertainment industry, as a whole, has been
estimated to be approximately INR 587 billion as in 2009. According to industry
reviews and reports this sector has shown a CAGR of 10% during 2006-2009 and is
forecast to grow at a CAGR of 13% over the next 5 years. The growth in media
& entertainment has primarily been aided by
|
M and E Industry
(INR Billions) |
2009 |
2014P |
CAGR (2006-09) (%) |
CAGR (2009-14)(%) |
|
Television |
257
|
521 |
12 |
15 |
|
Print |
175
|
269 |
8 |
9 |
|
Films |
89
|
137 |
5 |
9 |
|
Animation |
20
|
47 |
18 |
19 |
|
Outdoor |
14
|
24 |
5 |
12 |
|
Music |
8
|
17 |
2 |
16 |
|
Radio |
8
|
16 |
9 |
16 |
|
Gaming |
8
|
32 |
38 |
32 |
|
Internet |
8
|
29 |
56 |
3 |
|
Total Size |
587
|
1091 |
10 |
13 |
Television, Print
and Films are by far the largest segments of the media and entertainment
industry today and as per industry reports will continue to remain dominant over
the next 5 years. Internet segment has exhibited the fastest growth during the
period 2006-09 and is projected to be the second fastest growing segment going
forward. Television and Print segments derive revenues from both Advertising
and Subscription whereas Outdoor and Radio only have an Advertising revenue
stream. Films have a diversified revenue mix including theatrical ticket sales,
home video, cable, satellite and DTH rights sales and other ancillary revenues.
Animation and Gaming industries in
OPPORTUNITIES AND
GROWTH DRIVERS
Media and
Entertainment Industry
The Media and Entertainment Industry has shown structural shift due to digitization
leading to convergence with consumers increasingly taking control of their
media consumption. Knowledge of evolving consumption trends is a critical
success factor in this scenario. The more one understands the habits of
customers, the greater opportunities will be there to meet their information
and entertainment requirements and generate revenues. The impact of
digitization has been wide-spread and deep-rooted across all segments of the
Media and Entertainment industry both globally and in
• Digitization and
Convergence – Digitization has been a huge trend in the global media industry deeply
impacting TV, print, music and films. From an enhanced consuming experience for
the end-user to greater addressability and monetization potential for the content
provider, digitization has proved to be a great value creator across the value
chain. Many digital platforms, ranging from digital cable, DTH, IPTV to
digitization of films, print and online sales of music have come into
existence. DTH is leading the digitization wave in
penetration and
the expected 3G roll out, the market for other digital distribution platforms
such as VoD, Pay Per View, Online streaming and downloads is likely to improve
considerably. Convergence of content across “screens” – TV, computer and mobile
is a direct result of the digitization revolution. Consumers as well as content
providers have
ensured that the same content is increasingly deployed across platforms
available to consumers at the time and place of their convenience. Whether its
e-papers or online streaming of shows or mobile based applications, all content
is now available at a click across devices. “My time” is the new primetime.
• Growth of the
Indian Consumption Story – Significant increase in private domestic
consumption accompanied with a shift of the share of wallet from essentials,
such as food, clothing and shelter to discretionary items such as recreation,
education, healthcare etc. has been the key macro-economic theme in India over
the last few years. This is largely a result of 2 factors – (a) the favorable
demographic composition of the nation, commonly termed as the “Demographic
Dividend”, which essentially means that a large proportion of the country’s
populace is young and in the working age group, thus allowing for greater
consumption upside and (b)
rapid economic
growth which has corresponded with the influx of foreign capital and brands as
well as stronger integration with the global socio-economic environment. The
above factors have led to the emergence of an ever increasing large consuming
class, with rising disposable incomes, which is globally aware and acquisitive
in nature. This consuming
class is highly “brand aware” and willing to spend money on goods and services
of“value”.
• Subscription led
revenue models - Traditionally, advertising revenues have had a strong hold in the
M&E industry, but increasingly, subscription revenues are becoming
important with consumers paying for media services. The media business models
in
• Increasing importance of regional markets – No longer can
media owners apply the “single content for all audience” strategy. From
providing regional versions or feeds of national media brands to launching
local content driven titles and channels, regionalization and localization have
been growing rapidly across media. The regional film,
music and print industries have always been a large part of the media milieu and
their importance has only grown in the last few years, extending now to
television and slowly to the web. This has been caused by the percolation of
media consumption in cities apart from the large metros and the gradual
increase in income & awareness levels in Tier 2 & Tier 3 cities. From
the launch of regional newspapers to city & region/language based channels
to special shows, this trend is spurring growth in multiple ways.
• Consolidation – Another key trend with respect to how the
industry has been organized is the rise of the “media conglomerate” in
• 360 Degree Connect
with Consumers - Players are looking beyond just the traditional mediums by reaching the
consumers across multiple platforms in order to establish a stronger connect.
They are taking the help of multiple touch points simultaneously to communicate
to the consumer across platforms like TV, Print, Radio, OOH, Films, Internet,
• Regulatory
enablers –Important factors such as gradual deregulation in industry policies,
easier availability of institutional capital for funding growth and the opening
up of global markets for Indian media content have facilitated the growth of
the industry.
Television industry
The television
industry, which is by far the largest component of the Indian Media and
Entertainment industry, is expected to grow from strength to strength, doubling
its revenues over the next 5-6 years. It recorded a growth of rate of around
12% on an average during the last 3 years and as per estimates accounted for
almost 44% of revenues of the M&E industry. The industry growth has been
nothing short of phenomenal given that private television industry commenced
its operations only in 1992, when the Government authorized privately owned
cable and
satellite televisions. Starting with 2 privately owned television channels in
1992, there are currently over 450 television channels with TV18 being one of
the nation’s leading broadcasters. TV18 operates the two leading business news
channels viz. ‘CNBC TV18’ and ‘CNBC AWAAZ’. Through the CNBC Channels, The
Company operates
Key Growth Drivers for Television News Industry
The Company’s
channel offerings address business news and current affairs. Apart from the
secular macro-economic growth factors and media industry trends, the television
news industry is impacted by the following specific factors:
• News relevance: News viewership
is directly related to the occurrence of expected as well sudden news events
that impact political, social, economic environment and are relevant to
viewers.
• Immediate
availability of news: An important parameter that differentiates
television news industry is its ability to break news as it happens rather than
report it at the end of the day. This has increasingly become the critical
success factor in the industry given the audience’s interest in being the
“first to know”. Viewers have come to expect television news to help them stay
upto date about their environment – local, national and international across
all areas of interest.
• Quality of news
content: News broadcasters have focused on delivering news as fast as possible to
viewers and presenting news in an interesting manner. Several factors such as
extensive news gathering networks, use of advanced news gathering technology, effective
editing and production systems are facilitating the rapid and interesting
dissemination of news content to viewers.
• Extensive reach: High absolute reach of news channels offers an
attractive platform for advertisers to build reach.
• SEC profile of
viewership: News channels, especially in the English language, have a higher
proportion of viewer ship among SEC A and SEC B households. These households
typically have higher purchasing power and are attractive targets for
advertisers. Increasingly, your Company and other industry players in this
genre are targeting other revenue streams through
(a) enhancing
domestic subscription revenues through new distribution platforms which reach
out to consumers directly such as DTH and IPTV;
(b) exploiting potential
to syndicate their content to domestic and international broadcasters or other
parties interested in news content;
(c) delivering
news over mediums such as Internet and SMS and
(d) international
subscription revenues from the Indian diaspora in regions such as the
BUSINESS OVERVIEW – SEGMENT
WISE PERFORMANCE
Television
Eighteen India Ltd (TV18) [BSE: 532299, NSE: TV18] operates
publishing & local search market with the acquisition of Infomedia,
rechristened as Infomedia18. Infomedia18 is
1. BUSINESS TELEVISION
o CNBC-TV18-India’s No.1 business medium.
o CNBC AWAAZ-India’s leading consumer focused business
channel
2. PUBLISHING & LOCAL SEARCH
o INFOMEDIA18 –
3. CONSUMER INTERNET
o WEB18 – Portals across the content, transaction, subscription &
mobile spectrum
o CONTENT-In.com, Moneycontrol.com, Ibnlive.com, Cricketnext. com,
Tech2.com, Compareindia.com, 52622
o TRANSACTION-Yatra.com, Bookmyshow.com, Easymf.com
o SUBSCRIPTION- Poweryourtrade.com, Commoditiescontrol. com,
Indiaearnings.com
4. REAL TIME DATA & INFORMATION
o NEWSWIRE18 –
BUSINESS TELEVISION
CNBC-TV18-INDIA’S NO.1 TV BRAND & INDIA’S NO.1 BUSINESS
MEDIUM
The undisputed
leader in business news and information in
programming,
special on-ground events and a series of awards that have set the standards for
industry benchmarks.
BUSINESS EXPANSION
• INFOMEDIA18
YELLOW PAGES: The new look print directory “Infomedia Yellow Pages (IYP)” has
been well received by the users:
o KNOW YOUR CITY:
During the Year “Know Your City” product was launched in Mumbai,
o Infomedia Yellow
Pages has launched new customer loyalty programs.
• ALIBABA
PARTNERSHIP: Their partnership with Alibaba.com, to sell memberships to SMEs in
• ASK ME: The
acquisition of Askme.com was completed during the Year. “Askme.in” beta site
was successfully launched during the year.
• EVENTS: The
Engineering Expo promoting the B2B print segment were held in 4 cities
including Pune, Ahmedabad, Chennai and
• “OVERDRIVE”
MAGAZINE:
• LAUNCH OF
“ENTREPRENEUR” MAGAZINE: During the year, Infomedia18 launched “Entrepreneur”,
one of the world’s leading magazines for small businesses & business
owners, for the Indian market. The local edition focuses on
• PLATFORM
DIVERSITIFICATION: “Better Photography” magazine introduced the acclaimed
“Wedding Photographer of the Year” awards
INDUSTRY OUTLOOK
Globally, media
businesses do not operate in standalone segments of the media industry or with
a single property. As players expand their portfolio of services and revenue
streams, their presence across the value chain further strengthens their
competencies. The most attractive aspect of media businesses is their ability
to leverage.
Players either
leverage their core competencies in a particular content (filmed, news, music,
gaming, etc) and extend presence across distribution formats or leverage
presence in a particular value chain – film, television, print, etc. In
Competition in News
The competition in the television business news broadcasting industry is
intense. They believe that competitive advantage is based principally on
connectivity and the ability to attract and retain viewers and advertisers.
Their ability to compete successfully depends, in part, on their ability to
anticipate and respond to competitive factors affecting the Indian news broadcasting
industry, and more specifically, the Indian television business news
broadcasting industry.
Strengthen market leadership – Innovation & Leadership in
Television programming
The company intend
to continue to produce and broadcast television programming that enables them
to maintain their market leadership in the television markets they serve. They
seek to continue to be a market innovator in content differentiation,
programming formats and scheduling by continuously enhancing the news
gathering, programming and presentation of their television channels.
Building strong strategic partnerships
Partnerships,
alliances and joint ventures are great value drivers with significant synergy
upsides through collaboration and sharing of strengths. Their Company has
established partnerships and alliances with other leading media establishments
and has been instrumental in initiating and creating several strategic
partnerships and alliances entered into by the Network18 group. They believe
that they have a reputation in the media industry as a reliable partner which
has enabled us and the Network18 group to build and maintain relationships with
other leading global and Indian media entities, including NBC Universal, CNN
(Time Warner), Viacom. The company believe that they derive substantial
benefits from the brand name and extensive network of their partners and that
their partners recognize the value they
bring to the ventures, which is demonstrated by the willingness of their
partners to collaborate with them for extended periods. They believe that their
partners and alliances provide them with greater market visibility, significant
synergy upsides through sharing of strengths, reputational benefits and will assist
them in continuing to build their market share in India and internationally.
Establishing & growing new businesses
The Company has in
the past successfully conceptualized and established new businesses in niche
spaces. They entered the internet space in 2000 and have since then
successfully established, through both organic and inorganic growth, several
leading internet websites in
Positioned to capitalize on online & mobile growth
With the advent of
3G services, wireless broadband & WIMAX, value added content, secure
payment gateways and enhanced backend logistics, the internet & mobile are
slowly growing to be a preferred media for consumers in
Regional focus
Given
Looking forward
They believe that
advertising spending in
BUSINESS STRATEGY & FUTURE PLANS
Television
Eighteen (TV18) has a leading presence in the financial news, information and
transactional space in
• Deliver across the financial information & specialty need
spectrum - Considering the return of strong economic momentum post the global slowdown,
rising consumerism, growth in the financial needs of Indian consumers and
deepening of retail finance markets, increasing global assimilation of India
Inc. and the overall importance of the Indian economy, their presence across a
the spectrum of business and financial information as well as the specialty B2C
and B2B space is critical. Through their channels, online services and other
offerings, TV18 delivers content ranging from markets to personal finance and
investing choices, from policy to management intelligence, from corporate news
and information to financial education, from benchmark initiatives to industry
verticals, from special interest to niche infotainment. TV18 shall continue to
add to its content and service repertoire to meet all evolving information and
transactional needs of the financial and business audiences in the country.
• Exploit content
& platform synergies- TV 18 will also focus on leveraging cross platform
synergies both in terms of content, media as well as audiences. The focus will
be on ensuring content availability as is required, with a high degree of ease
of use and also as much customization as possible. Moreover, TV18 shall focus
on providing sustainable value to advertisers and partners by delivering
audiences at multiple touch points across platforms.
• Addressability - With the growing addressability emerging on the
Indian media landscape, TV18 will endeavor to develop competent offerings on
addressable platforms satisfying relevant content needs of
• Consolidation
& Diversification - Web 18, a key part of TV18 stable, shall continue
to focus on emerging as a leader in the online content, transaction and
communication spaces and thus strengthen TV18’s existing presence in new media.
With the rapid proliferation of online media in
Website Details:
Subject is a, India's premier
business and consumer news broadcaster and leading media content provider, was
incorporated on 24th Sep 1993 as Television Eighteen India Private Limited. It
Became a public limited Company in 2nd November 1994 and Subsequently Renamed
as Television Eighteen India on 2nd Jan 1995. Over the last decade, the Company
has provided prime time television content to almost all leading satellite
channels in
CNBC TV18 is
TV18 owns studios in
At Present the TV18 India Ltd has five Subsidiaries namely Television
Eighteen Mauritus Ltd, e-eighteen.com Ltd, I.News.com, Eighteen Entertainment
India Ltd, Money Control Dot Com India Ltd and SRH Broadcast News Holdings
Private Limited.
In 1996 the Company set up a wholly owned Subsidiary in
In 1997, this venture suffered a major setback as ABNi, which was
providing around 50% of the Companies revenue closed down following the merger
of its parent, ABN with CNBC Asia, but regained its relationship the CNBC in
2003. CNBC-TV18 will now jointly brand a channel which was operated by TV18s
Subsidiary and TV18 shall now own nearly 90% stake in the Channel and balance
held by the CNBC Asia Pacific
In Dec 1999, the company came out with a public issue of 29,36,000 equity
shares of Rs.10/- each at a premium of Rs.170/- per share. In march 2000 it
incorporated e-eighteen.com pvt ltd, a subsidiary to house its internal
interests. The subsidiary has acquired Money control Dot Com Private Ltd, the
Company owning the highly successful financial portal, Money control.com
During 2001-2002, the entertainment part of the Companies business was
hived off to 100% subsidiary viz Eighteen Entertainment India Ltd.
During 2002-2003 the company successfully restructured its relationship
with CNBC in accordance with the new government guidelines for new channels.
Tv18 previously held a 49% stake in the CNBC India Joint Venture in
In 2004 A Large 40,000 Sq Ft plus facility was set up in Mumbai with
state-of-the-art broadcast equipment and studios.
During 2005 the Company entered in to General News Space. To Facilite
this ambitious expansion, the Company started work on a 60,000 Sq ft studio in
Noida, which will be operational in the fourth quarter of the year. Turner
International (Turner) and Global Broadcast News (GBN), a TV18 Group Company,
announced a partnership to launch a co-branded, 24-hour, English-language
general news channel in
Under the terms of the agreement, GBN's proposed channel - formerly known
as India Broadcast News (IBN) and now co-branded as CNN-IBN - will have access
to CNN's trademark live breaking news as well as key feature programmes. This
unique alliance will, for the first time ever, enable Indian viewers to view
local news as well as relevant global news from CNN, the world's news leader,
on the same platform. The new channel will focus on providing robust and high
quality news from every corner of
Headquartered in
GBN, a TV18 Group Company, is a 74:26 joint venture between the TV18
Group and professionals - Rajdeep Sardesai, Sameer Manchanda and Haresh Chawla.
GBN's charter is to launch channels in the general news space under the
editorial leadership of Sardesai, one of
The company during 2005-2006, acquired a 50% stake in Channel 7 - a
general news channel in Hindi, owned by Dainik Jagran Groupin April 2006. TV 18
group has recently revamped the editorial team and relaunched the channel with
a new international look in June 2006. The company has done a JV with Asia's
leading e-recruitment provider-jobstreet.com for a job search portal and is
soon to launch yatra.in-
Company Details:
Television Eighteen (TV18) is
Is
CNBC-AWAAZ
AWAAZ is
CNN-IBN
A service of TV18 and Time Warner,
CNN-IBN is
IBN 7
IBN 7, the latest entrant into the TV18 family, has the most respected Hindi
news team under the leadership of Rajdeep Sardesai and Ashutosh. IBN 7 has
doubled its viewership within six weeks of launch and is set to become the
leading Hindi news channel of the country. IBN 7 is redefining the news genre
by providing hard news with an in-depth perspective.
Moneycontrol
Moneycontrol is
IBNlive
IBNlive is
PowerYourTrade
is a financial advisory portal,
delivering a comprehensive mix of expert advice, stock news and analysis to
investors and traders. This site has
CommoditiesContro
India's first and most credible commodities information and research service
with more than 30,000 paid subscribers and six million page views a month,
CommoditiesControl brings its users a deeper understanding of the Indian
commodities space, with coverage of real-time market information and the
interplay between the various market participants, through first hand access to
prices from over 100 spot markets.
JobStreet
TV18 has entered
the e-recruitment market space by acquiring JobStreet
Yatra
Yatra provides travel-related information, pricing, availability and
reservations for airlines, hotels, railway, buses and car rentals across 5000
large cities and small rural areas throughout
cricketizens
The site was launched in 2000 by Walchand CricketNext.Com Limited and
has been recently acquired by TV18 Network and also forms part of Web18. It
offers volumes of information and opinion, not to speak of contests and loads
of fun. CricketNext.Com recognises the fact that the medium allows ready
interactivity. The interactive features include a daily poll question,
celebrity chats and discussion boards besides encouraging cricketizens to
express themselves by writing in their own columns.
.compareindia
The site was recently acquired by TV18 Network and forms a part of Web18. The
uniqueness of the portal lies in the fact that it operates at two levels: at
the back-end, it is a research organization and at the front-end, it is a free
information service. It uses research as a tool to provide consumers free
information on products they want to buy. Currently, the site features 37
product categories: Audio systems, televisions, washing machines, microwave
ovens, refrigerators, fax machines, photocopiers, and printers, amongst others.
Tech2
Tech2.com is Television 18's integrated technology media brand. It
includes the website, www.tech2.com,
the Tech Shows on CNBC-TV18 and CNN-IBN, and in the near future, Events as well
as a Mobile Platform.
HomeShop18 (HS18)
HomeShop18 (HS18) is a new venture from the TV18 Group,
Studio
18
Studio 18 is the entertainment division of the Network 18 Group. Their
business model encompasses a 360 degrees approach to the film business that
includes Production, Acquisition, worldwide Distribution, Marketing,
Syndication, Home Video and Music Label.
NewsWire18 Ltd
NewsWire18 Ltd is a part of the Television Eighteen group. NewsWire18
was formed by acquiring the staff and business of CRISIL MarketWire Ltd,
Capital18
Capital18 is the group’s venture capital and private equity arm focused
on making investments in media, entertainment and technology ventures.
2622
2622 is TV18's mobile short code, which is powered by the in-depth and
real time content of the entire group. This mobile platform uses robust and
scalable state-of-the-art technology to deliver millions of messages every
month on news and information to the most affluent audiences, while they are on
the go. Latest breaking news, news headlines, stock prices, indices, and even
recommendation of portfolios are available on mobile phones
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.45.70 |
|
|
1 |
Rs.72.78 |
|
Euro |
1 |
Rs.61.65 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
NO |
|
--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 |
|
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.