%20LIMITED%20-%20148791%2021-Jul-2011_files/image002.jpg){kind=small}
MIRA
INFORM REPORT
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Report Date : |
21.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
ENTERTAINMENT NETWORK (INDIA) LIMITED |
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Registered
Office : |
4th Floor, A Wing, Matulya Centre, Senapati Bapat Marg,
Lower Parel, Mumbai-400013, Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
24.06.1999 |
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Com. Reg. No.: |
11-120516 |
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Capital
Investment / Paid-up Capital : |
Rs. 476.704 millions |
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CIN No.: [Company Identification
No.] |
L92140MH1999PLC120516 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUME03661A |
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PAN No.: [Permanent Account No.] |
AAACE796G |
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Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on the
Stock Exchanges. |
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Line of Business
: |
Radio Broad Casting |
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No. of Employees
: |
700 (Approximately) (All over the India) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 13000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having fine track. General financial
position is good. Trade relations are reported as fair. Business is active.
Payments are reported to be correct and as per commitments. 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.
INFORMATION PARTED BY
|
Name : |
Mr. Mehul |
|
Designation : |
Company Secretary |
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Contact No.: |
91-22-67536983 |
|
Date : |
20.07.2011 |
LOCATIONS
|
Registered Office : |
4th Floor, A Wing, Matulya Centre, Senapati Bapat Marg,
Lower Parel, Mumbai-400013, Maharashtra, India |
|
Tel. No.: |
91-22-67536983 |
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Fax No.: |
91-22-56620600 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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|
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|
Corporate Office : |
Trade Gardens, Ground Floor, Kamala Mills Compound, Senapati Bapat
Marg, Lower Parel (West), Mumbai - 400 013, Maharashtra, India |
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Tel. No.: |
91-22-67536983 |
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Fax No.: |
91-22-67536800 |
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|
|
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Branches : |
Located At ·
Ahmedabad ·
Aurangabad ·
Bhopal ·
Bengaluru ·
Chennai ·
Coimbatore ·
Delhi ·
Hyderabad ·
Indore ·
Jabalpur ·
Jaipur ·
Jalandhar ·
Kanpur ·
Kolhapur ·
Kolkata ·
Lucknow ·
Madurai ·
Mumbai ·
Mangalore ·
Nagpur ·
Nashik ·
Panaji ·
Patna ·
Pune ·
Raipur ·
Rajkot ·
Surat ·
Thiruvananthapuram ·
Vadodara ·
Varanasi ·
Vijaywada ·
Vishakhapatnam |
DIRECTORS
AS ON 08.07.2010
|
Name : |
Mr. Vineet Jain |
|
Designation : |
Chairman |
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|
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|
Name : |
Mr. N kumar |
|
Designation : |
Director |
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|
Name : |
Mr. Deepak M Satwalekar |
|
Designation : |
Director |
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|
Name : |
Mr. Ravindra Kulkarni |
|
Designation : |
Director |
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|
Name : |
Mr. Ravindra Dhariwal |
|
Designation : |
Director |
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|
Name : |
Mr. A P Parigi |
|
Designation : |
Director |
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|
Name : |
Mr. Prashant Pandey |
|
Designation : |
Executive Director and CEO |
KEY EXECUTIVES
|
Name : |
Mr. N Subramanian |
|
Designation : |
Group CFO |
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|
|
|
Name : |
Mr. Tapas Sen |
|
Designation : |
Chief Programming Officer |
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|
|
Name : |
Ms. Sujata Bhatt |
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Designation : |
Executive VP- Corporate Strategy and Marketing |
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|
Name : |
Mr. Hitesh Sharma |
|
Designation : |
Executive VP and Regional Director – West Region |
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|
Name : |
Mr. Sameer Sainani |
|
Designation : |
Executive VP – Radio Sales |
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|
Name : |
Mr. Mahesh Shetty |
|
Designation : |
Executive VP and Regional Director – North and East Region |
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|
Name : |
Mr. Anand Parameswaran |
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Designation : |
Executive VP and Regional Director – South Region |
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|
|
Name : |
Mr. Mehul Shah |
|
Designation : |
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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|
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|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
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|
33918400 |
71.15 |
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|
33918400 |
71.15 |
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|
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|
Total shareholding of Promoter and Promoter Group (A) |
33918400 |
71.15 |
|
(B) Public Shareholding |
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|
|
|
|
|
|
|
273573 |
0.57 |
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|
1790 |
-- |
|
|
7662641 |
16.07 |
|
|
7938004 |
16.65 |
|
|
|
|
|
|
2779411 |
5.83 |
|
|
|
|
|
|
1558230 |
3.27 |
|
|
1422997 |
2.99 |
|
|
53373 |
0.11 |
|
|
19772 |
0.04 |
|
|
33515 |
0.07 |
|
|
86 |
-- |
|
|
5814011 |
12.20 |
|
Total Public shareholding (B) |
13752015 |
28.85 |
|
Total (A)+(B) |
47670415 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
|
- |
|
Total (A)+(B)+(C) |
47670415 |
- |
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Individual shareholders holding nominal
share capital up to Rs. 0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Radio Broad Casting. |
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Brand Names : |
Radio Mirchi |
GENERAL INFORMATION
|
No. of Employees : |
700 (Approximately) (All over the India) |
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Bankers : |
·
HDFC Bank Limited ·
Kotak Mahindra Bank Limited ·
HSBC Bank Limited |
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Facilities : |
Note : Above
loan is secured by a first pari passu charge on current assets and moveable
fixed assets.
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Banking
Relations : |
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Auditors : |
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|
Name : |
Price Waterhouse and Company Chartered Accountant |
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|
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Ultimate Holding Company : |
·
Bennett, Coleman and Company Limited |
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|
·
|
|
Holding Company : |
·
Times Infotainment Media Limited |
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·
|
|
Subsidiaries : |
·
Times Innovative Media Limited ·
Alternate Brand Solutions (India) Limited |
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·
|
|
Fellow Subsidiaries : |
·
Vardhaman Publishers Limited (VPL) ·
Times Internet Limited (TIL) ·
Times Global Broadcasting Company Limited (TGBCL) ·
Times Business Solutions Limited (TBSL) ·
Zoom Entertainment Networks Limited (ZENL)* ·
Optimal Media Solutions Limited (OMSL) ·
Artha Distribution Services Limited (ADSL) ·
Vijayanand Printers Limited (VAPL) ·
Mirchi Movies (India) Limited (MML) |
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|
·
|
|
Other Related Party where common control exists : |
·
Worldwide Media Private Limited (WWM)* |
CAPITAL STRUCTURE
AS ON
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
120000000 |
Equity Shares |
Rs.10/- each |
Rs. 1200.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
47670415 |
Equity Shares |
Rs.10/- each |
Rs. 476.704
Millions |
|
|
|
|
|
Notes :
1.
Of the above, 30,526,560 Equity Shares of Rupees 10
each are held by Times Infotainment Media Limited, the Holding Company and its
nominees.
2.
Of the above, 3,391,840 Equity Shares of Rupees 10
each are held by Bennett, Coleman and Company Limited, the Ultimate Holding
Company.
3.
During the previous year, the Company had issued
5,655 and 8,700 Equity Shares of face value of Rupees 10 each at a premium of
Rupees 187.30 and Rupees 185.67 per share respectively pursuant to the exercise
of Employee Stock Options granted to the employees.
4.
For Employee Stock Option Scheme, 2005.
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 |
476.704 |
476.704 |
476.561 |
|
|
2] Share Application Money |
0000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2838.208 |
2659.539 |
2629.211 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
3314.912 |
3136.243 |
3105.772 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
100.000 |
200.000 |
1152.500 |
|
|
2] Unsecured Loans |
234.311 |
900.666 |
780.000 |
|
|
TOTAL BORROWING |
334.311 |
1100.666 |
1932.500 |
|
|
DEFERRED TAX LIABILITIES |
216.185 |
217.276 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3865.408 |
4454.185 |
5038.272 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2117.888 |
2488.796 |
2836.283 |
|
|
Capital work-in-progress |
11.090 |
20.500 |
45.524 |
|
|
|
|
|
|
|
|
INVESTMENT |
400.250 |
390.250 |
420.250 |
|
|
DEFERREX TAX ASSETS |
285.241 |
291.382 |
44.386 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000 |
0.000 |
|
|
Sundry Debtors |
682.023
|
585.673 |
680.524 |
|
|
Cash & Bank Balances |
242.493
|
116.520 |
120.890 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
656.333
|
851.212 |
1352.068 |
|
Total
Current Assets |
1580.849
|
1553.405 |
2153.482 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
391.323
|
159.725 |
353.794 |
|
|
Other Current Liabilities |
110.192
|
102.445 |
82.633 |
|
|
Provisions |
28.395
|
27.978 |
25.226 |
|
Total
Current Liabilities |
529.910
|
290.148 |
461.653 |
|
|
Net Current Assets |
1050.939
|
1263.257 |
1691.829 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3865.408 |
4454.185 |
5038.272 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2300.410 |
2282.799 |
2252.164 |
|
|
|
Other Income |
11.441 |
18.939 |
41.742 |
|
|
|
TOTAL (A) |
2311.851 |
2301.738 |
2293.906 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Production Expenses |
199.784 |
211.492 |
149.046 |
|
|
|
License Fees |
119.024 |
122.714 |
119.931 |
|
|
|
Employee Costs |
481.819 |
538.975 |
487.524 |
|
|
|
Administrative Expenses |
911.906 |
910.462 |
972.802 |
|
|
|
TOTAL (B) |
1712.533 |
1783.643 |
1729.303 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
599.318 |
518.095 |
564.603 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
46.794 |
97.543 |
80.235 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
552.524 |
420.552 |
484.368 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
369.775 |
400.949 |
321.112 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
182.749 |
19.603 |
163.256 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
4.079 |
(9.521) |
1.323 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
178.670 |
29.124 |
161.933 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
774.324 |
745.200 |
583.267 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
952.994 |
774.324 |
745.200 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Other Earnings |
0.000 |
0.581 |
0.676 |
|
|
TOTAL EARNINGS |
0.000 |
0.581 |
0.676 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
0.933 |
0.782 |
18.068 |
|
|
TOTAL IMPORTS |
0.933 |
0.782 |
18.068 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
3.75 |
0.61 |
3.40 |
|
QUARTERLY RESULTS
(Rs.
In Millions)
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Net Sales |
575.330 |
627.840 |
774.910 |
821.510 |
|
Total Expenditure |
484.680 |
525.250 |
547.590 |
548.650 |
|
PBIDT (Excl OI) |
90.650 |
102.590 |
227.320 |
272.860 |
|
Other Income |
0.820 |
7.420 |
9.170 |
15.520 |
|
Operating Profit |
91.470 |
110.010 |
236.490 |
288.380 |
|
Interest |
(3.150) |
0.000 |
0.000 |
0.000 |
|
Exceptional Items |
0.000 |
0.000 |
123.690 |
3.150 |
|
PBDT |
94.620 |
110.010 |
360.180 |
291.530 |
|
Depreciation |
29.640 |
29.930 |
29.880 |
30.310 |
|
Profit Before Tax |
64.980 |
80.090 |
330.300 |
261.220 |
|
Tax |
21.900 |
29.990 |
81.720 |
80.890 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
43.070 |
50.100 |
248.580 |
180.330 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
43.070 |
50.100 |
248.580 |
180.330 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
7.73
|
1.26 |
7.06 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.94
|
0.86 |
7.25 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.59
|
0.45 |
3.24 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.06
|
0.01 |
0.05 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.33
|
0.51 |
0.77 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.98
|
5.35 |
4.66 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS
(Rs.
in millions)
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
|
|
|
|
– Dues to Micro, Small and Medium Enterprises |
0.108 |
0.100 |
0.000 |
|
– Others |
391.215 |
159.625 |
353.794 |
|
Total |
391.323 |
159.725 |
353.794 |
FINANCIAL PERFORMANCE
The Company
retained its position as the market leader in Private FM Radio Broadcasting
Industry. Total income of the Company increased from Rs. 2301.738 millions in the
year 2008-2009 to Rs.2311.850 millions in the financial year. Profit after tax
was higher at Rs.178.669 millions
OPERATIONS
The Financial Year
2009-2010 was a very difficult period. The Company too, faced several
challenges such as a very badly hit advertising sector, managing costs to
counter the effects of the revenue slow-down, managing the team morale etc. At
the same time, there were other challenges to manage – the Copyright
amendments, the Phase III policy and the Music Royalty related legal issues.
Revenue growth was
flat compared to the previous year. While this may look unsatisfactory at first
glance, it is in line with the results of most major broadcasters in the
Financial Year 2009-2010. As per Madison Media, the overall advertising industry
de-grew by nearly 10 % in calendar year 2009. The ad industry had not seen this
kind of a down-turn in the last several years. The Company has coped with the
situation reasonably well. By keeping a tight control on costs – in a business
where costs are very difficult to control – the Company has delivered a strong
43% growth in Earnings Before Interest, Taxes, Depreciation and Amortization
(EBITDA) levels (on a like to like basis). Due to the change in the terms of
the Media Collaboration arrangement with Bennett, Coleman and Company Limited
for Private Treaties business, the reported EBITDA growth was lower at 18%.
Thus, in the final analysis, they believe that the Company has done reasonably
well during the trying condition of the year that has gone by.
Management of
costs has focused on a few crucial areas namely, reducing head-count down from
a peak of 980 to 711, managing payroll costs by cutting down on incentive pay,
drastically reducing General and Administrative expenses by reducing travel
costs and others, reducing cost of operations by shutting down night time
operations of the smaller stations, reducing marketing spends while keeping
share of voice intact and reducing dependence on the Private Treaties business.
All of these have resulted in a significant savings in costs – the Company
plans to retain this tight control on costs in the Financial Year 2010-2011 as
well.
While the year has
been very bad for the ad industry, the ensuing year is expected to show a good
recovery. Industry experts are of the opinion that the ad industry could grow
by 11%-14% in the Financial Year 2010-2011. This is still lower than the growth
rates in the period prior to the Financial Year 2008-2009. It may take another
year for the growth rates to go back to the 16%-18% level, but there is a
strong belief that the growth rates will be back for sure. The long term growth
estimates remain intact.
The Company is
also looking forward to the Phase III policy that the government is likely to
announce soon. The Company, along with other radio broadcasters, has raised
certain issues with the government – if the government were to accept those
requests, then the overall radio industry could become profitable. The Company,
of course, has been profitable since its listing in 2006. The Company is
keeping a close eye on developments in this field and will decide on a suitable
strategy to handle the opportunities that emerge.
The Company is
also keeping an eye on developments in the areas of music royalty and copyright
amendments. The Company has always backed the moral rights of artists – the
real maestros of the industry. At the same time, the Company has always
demanded a fair royalty regime – in line with global practices. To that extent,
the Company is continuing its efforts to find an acceptable solution to the
royalty issue.
The Company has
kept its focus on building brand “Mirchi” during the year. As a result of this
focused approach, the Company’s Mumbai station has been unanimously declared
the leader in the Mumbai market. The industry’s definitive research –Radio
Audience Measurement (RAM) – has declared Mirchi the No. 1 radio brand in the
financial capital of India since May 2009. The other research standard in the
advertising industry – the Indian Readership Survey (IRS) – has consistently
rated Mirchi as the No. 1 brand in Mumbai. The latest round of IRS also rates
Mirchi as the leader in 25 of its 32 stations, a feat unrivaled by any media
brand.
During the year,
the Company was endowed with several awards. Radio Mirchi was awarded the “Most
successful radio channel” by FICCI. The Global Youth Marketing Forum gave it
the “Most popular radio channel among the youth” award. Mirchi also got the CMO
Council Brand Leadership Award. Apart from this, there were several wins for
the Mirchi programming team in the India Radio Forum (IRF) and the Ad clubs
across India.
At the end of the
financial year, the Company stands in a position of strength. The Radio
Business is net debt free. It is awaiting the fresh opportunities that Phase
III will unfold. Its management team is raring to go. The interests have always
been paramount – that will never change
MANAG EMENT
DISCUSSION AND ANALYSIS
Media Industry Structure, Developments and Outlook
World economy
showing signs of improvement
The worst appears
to be behind us. After a tough year which saw many of the countries across the
world showing a de-growth in their GDPs, 2010 promises to be a better year.
According to predictions made by the IMF (International Monetary Fund), the
emerging economies are expected to grow by 6.5% in 2010. This would mark a
recovery from merely 2.5% in 2009. The story for Asia generally looks very
promising. While economies in Europe are estimated to grow in the range of 1%
to 3.3%, Asia overall is expected to grow at 7%. Fuelled largely
by India and China
which are expected to grow at 8.8% and 10% respectively.
Global advertising
industry expected to revive
The growth of the
media and entertainment industry and specifically those based on advertising is
directly dependent on the country’s GDP growth. With positive economic
predictions, and an improving corporate sentiment, advertising growth
predictions for 2010 are also encouraging. Worldwide the advertising industry
is expected to partially recover in CY 2010 and do even better going forward.
Global major, Aegis Carat had predicted a growth rate of 1.0% for the global
advertising for 2010 in Oct 2009. However after observing the pace of recovery
over the next quarter after that, they have now revised the forecast to 2.9%.
Indian Media and
Entertainment growth story stronger
According to the
latest FICCI KPMG report, the Media and Entertainment (M and E) Industry grew
by 1.4% in 2009. This was a sharp dip from the 12% growth that it had achieved
in 2008. The growth rate in 2010 however is expected to be back to almost the
pre-downturn levels – around 11% in 2010. Further, the longer term growth
forecast still remains strong - it is expected to grow at a CAGR of 13% between
2009-14.
Indian advertising
industry - also likely to grow strongly. Radio amongst fastest growing segments
According to the
same report, amongst the traditional media radio is expected to have the
highest rate of growth in the next 5 years. Radio is expected to have a CAGR of
16% between 2009-14 which is higher than the CAGRs of TV and Print at 15% and
9% respectively.
Other reports and
surveys also suggest a similar story.
According to the
Pitch Madison report, the advertising industry is expected to grow at 13% in
2010. Further, radio revenues are expected to grow by 20%.
Zenith Optimedia
in its annual report, has projected a growth rate of 9% for the Indian
advertising industry in 2010.
With more
favourable regulatory policies and reasonable music royalty structures, the
radio industry is hopeful of surpassing these projections. Resolving the music
royalty row is important to achieve higher growth in the radio sector. As per
the current music royalty regime, the music royalty payable by a radio
broadcaster for a city is not dependent on the size of the city or its
advertising potential. For eg., the royalty in Jabalpur is the nearly the same
as the royalty in Mumbai or Delhi. If this anomaly gets corrected, then there
will be widespread growth in radio – propelled by the likely announcement of
the 3rd Phase of radio reforms.
Other factors
which will help Radio
Phase 3 : The 3rd Phase of
radio reforms is expected to increase the number of FM towns/cities from around
85 now to over 250. The number of frequencies would increase form 240 odd to
almost 750. This increase in the number of channels would make the medium even
more relevant for advertisers.
Increasing reach
of mobile phones: While new geographies would help increase the overall reach of the
industry, the evolving listenership behavior itself would provide a new thrust
for growth. Thanks to the rapid growth of mobile phones, there is now almost
universal availability of the FM radio device. The mobile phone is fast
becoming the preferred device for consuming radio. The industry estimates that
listenership on mobile phones is almost 20% now compared to 10% a couple of
years ago. As mobile penetration increases further and as FM radio spreads into
smaller towns, radio listenership is bound to increase.
Digital revenues: Radio companies
are increasingly looking at leveraging the digital space to grow. There have
been some initiatives by large operators in this direction. By extending their offerings
onto the digital platforms like the internet and telecom platforms, radio
companies would not only create a new source of revenue but also tap into new
listeners. This would also help music artists and music labels generate more
royalties for themselves.
FY10 WAS A CHALLENGING YEAR – BUT NEGOTIATED WELL
Back on the growth
path
After 4 quarters
of de-growth, the radio business is back on the growth track. We have had
positive growth in the last 2 quarters of this financial year and the momentum is
expected to continue. In the period of the slowdown, they maintained their
market share and have improved their profitability. With the economy improving
and consumer demand increasing, advertisers are keen to up their advertising
spends. We are hopeful this will have a positive effect on ENIL’s revenues.
Mirchi Music
Awards 2nd edition – A Grand Success
It was a bigger
challenge this year, and it proved to be a bigger success too. Their effort to
recognize and honour the Hindi music industry with the launch of the Mirchi
Music awards last year reached new heights of success this year when they had
an even bigger 2nd edition of the awards. They added non-film category to the
awards in the 2nd edition. The music and film industry came out in even larger numbers
to attend the function and support these unique awards – the ONLY awards
dedicated to the music industry. The music awards reinforced Radio Mirchi’s
commitment to music in general and the music artists in particular. The
response this year was overwhelming and with the support and partnership of the
music industry, they would continue to build the Mirchi Music awards year on
year.
ONLY PAN India ,
Radio measurement survey – Indian Readership Survey – declares Radio Mirchi the
undisputed leader
The Indian
Readership survey, the ONLY survey which measures radio listenership across the
country has placed Radio Mirchi as the clear leader in listenership. According
to the week after recall data of IRS, Radio Mirchi has a listenership of almost
42 mn, which makes it almost DOUBLE the size of the next radio brand. This
research is evidence of the strength of the programming and marketing teams of
Mirchi. They have been the largest radio station in all IRS surveys till date
and have been strengthening their lead with every round. They are currently
leaders in nearly three fourths of the 32 markets that they have licenses for
including stations in all regions of the country. The survey which was earlier
bi-annual will now be released on a quarterly basis. Measurability of PAN India
listenership is good for the industry overall and aids media planners in taking
better and more informed decisions with respect to radio buying. This also
helps leaders like us in improving revenues.
Success in RAM
continues
Radio Mirchi has
been the undisputed leader in 3 of the 4 markets where the Radio Audience
Measurement is currently available. We are leaders in Mumbai, Kolkata and
Delhi. We are a close 2nd in Bangalore (within 10% of the leader). Mirchi has
been actively engaging in brand and listenership research to know the pulse of
its listeners. They have successfully introduced changes in our programming to
ensure that our content stays fresh, relevant and exciting. They have also been
reaching out to our audiences through marketing campaigns and on ground
tactical initiatives. Marketing has been working in tandem with programming to
ensure that while listenership loyalty is maintained, new listeners also get
introduced to the brand regularly. Their focus on brand research has helped us
create standardization of communication in all aspects of the brand –
advertising as well as on air content.
Brand Equity
research re-confirms strength of Brand Mirchi
ENIL believes in
investing considerable resources on research. The constant feedback received
through research helps them stay ahead of the curve. They recently commissioned
a Brand Equity research with one of the leading qualitative research companies
in the country. The results of the research have been more than encouraging. In
this research, which was carried across many cities, Radio Mirchi came out as
the most strongly recognized radio brand amongst all the radio players in the
country. While in terms of the product, there was less differentiation between
radio brands, the differentiation that Radio Mirchi enjoys as a brand was very
strong. They have devised strategies to further enhance these brand
differentiators while also trying to create differentiated listening
experiences.
Mirchi Mobile
launched
ENIL has always been
at the forefront on innovation, whether it for client related solutions on
radio or creating new propositions for audiences. Radio Mirchi recently
introduced Mirchi Mobile in partnership with Spice Digital Limited. This
service allows a subscriber of Airtel to hear his/her favorite Mirchi station
from almost anywhere in the country by dialing a simple local number on the
mobile phone. The service would not only open new avenues of revenue growth for
the Company but would also reinforce our commitment to listeners to bring the
latest means of entertainment to them. The service hopes to be a game changer
and is expected to benefit the entire music ecosystem – music companies,
artists and Mirchi as well. This launch has been one of the biggest innovations
in the music VAS space this year. It again reinforces their thought/innovation
leadership in the industry.
Vodafone Mirchi
Caller Tune
Radio Mirchi
launched the Vodafone Mirchi Caller Tune (VMCT) which allows a subscriber of Vodafone
to discover and set his/her caller tune with increased ease. The subscriber
would just need to dial a pre-designated number while listening to his/her
favorite song on Mirchi and have that set as the caller tune. This product is
an example of co-creation between two industries. It is yet another example of
thought and innovation leadership from the leader of the Radio Industry.
Awards and
recognitions
This year saw ENIL
getting many awards and recognition.
Most successful
Radio Channel of the year at FICCI Frames – 2010
Radio Mirchi was
awarded the most successful Radio Channel of the year at the FICCI – Frames
Excellence Awards 2010. Mirchi was the ONLY radio station to receive the award.
The awards celebrated the excellence in the business of entertainment.
Most popular radio
channel amongst the youth
Radio Mirchi was
awarded the most popular radio channel amongst the youth at the 2nd Global
Youth Marketing Forum. Considering that more than 60% of India’s population is
below the age of 30, this award underlines the pre-eminence of Mirchi in the
radio space in the country. This did not come as a surprise to them as in all
the research that they have been commissioning in the past, Mirchi has always
been identified as a youthful and energetic brand very popular in the young
TGs. With great music, energetic jocks and continuous innovations, they are
confident Radio Mirchi will maintain its dominance amongst young Indians.
IRF awards
Radio Mirchi won
many other awards this year for its marketing and programming initiatives
including 8 awards at the Indian Radio Forum 2009. Some of the categories in
which Mirchi got the top honour are best radio programmes in Bengali and
Gujarati, best in-house promos in Tamil, Gujarati and Bengali etc. Additionally
4 out of the 7 awarded Radio Jockeys were from Mirchi.
Corporate social
responsibility
MIRCHI CARES the
CSR division of Radio Mirchi has been providing audio help to the Visually
Impaired People by way of Audio films, Audio Newsreels, Music workshops, Story
telling sessions and Talking books for the visually impaired. These talking
audio books are recorded both by both Mirchi RJs as well as by Mirchi listener
volunteers in various languages across our 32 stations.
They made big
strides in our CSR initiatives this year. Mirchi Cares recently became a
partner with the Daisy Consortium of India that provides audio books online.
Mirchi Cares is now a ‘channel’ with Inclusive Planet, sharing books online for
the consumption of the visually impaired across the globe.
After Hari Puttar,
the first Audio film produced by Radio Mirchi, an award winning Marathi film,
Jhinki re Jhinki too was converted into the audio format and was ‘heard’ by the
sightless in Pune recently. Mirchi Cares, along with Saksham will be taking
about 7 Hindi films to various Blind Schools and Institutions. These include
Munnabhai MBBS, Taare Zameen Par, Hanuman Part 1 to name a few. Ever since its inception, Mirchi Cares, under
the Lend Your Voice Campaign has recorded over 300 audio books. Some of the
achievements include tie ups with XRCVC Mumbai, NAB Delhi, Score Foundation,
Pratham Books and Saksham. They are committed to doing our bit for the deprived
in society in the coming years too.
Task Force on
Piracy created
Piracy is a big threat
to the music industry in this country. ENIL is playing its role in fighting
this menace and is part of the Anti-piracy task force which was created
recently. The task force has representatives from different industries of the M
and E sector and is working towards creating a collaborative effort between
them to reduce the rate of piracy in the country. The task force would also
suggest means to tackle piracy and impress upon the government to create laws
and enforcement mechanisms so that piracy is contained. They are committed to
preserving the future of music and hope to play a key role in this initiative.
FIXED ASSETS
·
Computer Software
·
Migration Fees
·
Land
·
Building
·
Leasehold Improvements
·
Office Equipment
·
Computers
·
Furniture and Fixtures
·
Motor Vehicles
AUDITED FINANCIAL
RESULTS FOR THE YEAR ENDED MARCH 31, 2011
(Rs. in millions)
|
Sr. No. |
Particular |
Unaudited |
Audited |
|
|
|
3
Months Ended 31.03.2011 |
Year
Ended 31.03.2011 |
|
1. |
Gross
Sales / Income |
|
|
|
|
a. Net Sales / Income from Operations (Net of Excise and Discounts) |
801.170 |
2724.796 |
|
|
b. Other Operating Income |
20.344 |
74.800 |
|
|
Total
Income (a+b) |
821.514 |
2799.596 |
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
a) Production Expenses |
35.327 |
160.947 |
|
|
b) License Fees |
40.951 |
140.232 |
|
|
c) Employee Cost |
143.729 |
564.438 |
|
|
d) Depreciation |
30.308 |
564.438 |
|
|
e) Amortisation |
53.312 |
119.751 |
|
|
f) Marketing Expenses |
121.388 |
216.209 |
|
|
g) Other Expenditure |
153.949 |
681.886 |
|
|
h)
Total Expenditure |
578.964 |
2225.931 |
|
|
|
|
|
|
3. |
Profit From Operations before Other Income, Interest and
Exceptional Items (1-2) |
242.550 |
573.665 |
|
|
|
|
|
|
4. |
Other Income |
12.851 |
14.304 |
|
|
|
|
|
|
5. |
Profit Before Interest and Exceptional Items (3+4) |
255.401 |
573.665 |
|
|
|
|
|
|
6. |
Interest |
(2.665) |
(21.766) |
|
|
|
|
|
|
7. |
Profit After Interest but before Exceptional Items (5-6) |
258.066 |
609.735 |
|
|
|
|
|
|
8. |
Exceptional Items |
3.152 |
126.848 |
|
|
|
|
|
|
9. |
Profit from Ordinary Activities before Tax (7+8) |
261.218 |
736.583 |
|
|
|
|
|
|
10. |
Tax Expense |
80.885 |
214.494 |
|
|
|
|
|
|
11. |
Net Profit from Ordinary Activities after Tax (9-10) |
180.333 |
522.089 |
|
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
-- |
|
|
|
|
|
|
13. |
Net Profit for the period (11-12) |
180.333 |
522.089 |
|
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
476.704 |
476.704 |
|
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
3360.298 |
|
|
|
|
|
|
16. |
Basic
and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
3.78 |
10.95 |
|
|
a) Basic and diluted EPS before extraordinary items |
3.78 |
10.95 |
|
|
b) Basic and diluted EPS after extraordinary items |
|
|
|
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
|
-Number of Shares |
13752015 |
13752015 |
|
|
- Percentage of Shareholding |
28.85% |
28.85% |
|
|
|
|
|
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
- Number of Shares |
Nil |
Nil |
|
|
- Percentage of Shares (as a % of the Total Shareholding of
promoter and promoter group) |
Nil |
Nil |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
Nil |
Nil |
|
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
- Number of Shares |
33918400 |
33918400 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
100 |
100 |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
71.15% |
71.15% |
1.
The Company is engaged in only one segment i.e.
Radio Broadcasting Business. Consequently, there is no other reportable
segment. The Company caters to the needs of the domestic market and hence there
are no reportable geographical segments.
2.
The Company has a Media Collaboration Arrangement
with Bennett, Coleman and Company Limited (BCCL), the ultimate holding company.
This arrangement seeks to expand the advertisement market and inter-alia helps
the Company to gain access to certain clients who may not otherwise advertise
in FM Radio. The revenues generated from this arrangement during the quarter
ended March 31, 2011 and the year ended March 31, 2011 were Rs. 54.970 millions
(quarter ended March 31, 2010 Rs. 35.672 millions) and Rs. 167.865 millions
(Previous year ended March 31, 2010 Rs. 144.154 millions) respectively.
Subsequently, in view of the uncertainties as to timing and the quantum of the
ultimate collection, the Company has based on the principles of prudence,
created a provision for doubtful debts of Rs. 25.655 millions for the quarter
ended March 31, 2011 (quarter ended March 31, 2010 Rs. 32.021 millions) and Rs.
111.829 millions for the year ended March 31, 2011 (year ended March 31, 2010
Rs. 127.735 millions) in respect of sales made through this arrangement.
3.
The consolidated results include results of the
Company's subsidiaries viz. Times Innovative Media Limited (TIM), Alternate
Brand Solutions (India) Limited (ABSL) and TIM Delhi Airport Advertising
Private Limited (TIMDAA), a subsidiary of TIM, which are consolidated in
accordance with Accounting Standard 21. The results of TIM and its subsidiary
TIMDAA have been consolidated till December 29, 2010 i.e. the date of cessation
of ownership from the Company.
4.
On December 29, 2010, the company sold its entire
stake in TIM to BCCL. The profit from this sale amounting to Rs.126.848
millions (post tax profit Rs 122.792 millions) has been reflected as
exceptional items in the financial statements. The tax on this exceptional gain
amounting Rs. 4.056 millions has been included in the tax expense for the year
ended March 31, 2011. The sale however resulted in a loss of Rs.177.648
millions in the consolidated financial statements and has been reflected as
exceptional items in the consolidated financial statements.
5.
The Statement of Assets and Liabilities as required
under clause 41(V)(h) of the Listing Agreement is as under:
|
STATEMENT OF ASSETS AND LIABILITIES |
31.03.2011
AUDITED |
|
SHAREHOLDERS FUNDS |
|
|
1] Share Capital |
476.704 |
|
2] Reserves & Surplus |
3360.298 |
|
LOAN FUNDS |
0.000 |
|
DEFERRED TAX LIABILITIES |
88.534 |
|
|
|
|
TOTAL |
3925.536 |
|
|
|
|
FIXED ASSETS [Net Block] |
1811.643 |
|
INVESTMENT |
931.003 |
|
DEFERREX TAX ASSETS |
0.000 |
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
Sundry Debtors |
1038.006 |
|
Cash & Bank Balances |
232.390 |
|
Loans & Advances |
560.741 |
|
Total Current
Assets |
1831.137 |
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
Current Liabilities |
615.281 |
|
Provisions |
32.966 |
|
Total Current
Liabilities |
648.247 |
|
Net Current
Assets |
1182.890 |
|
|
|
|
TOTAL |
3925.536 |
6.
The above results were reviewed by the Audit Committee
and were thereafter approved by the Board of Directors at their meeting held on
May 23, 2011.
7.
There was no Investor complaint pending as at the
beginning of the quarter. The Company received one complaint from the investor
during the quarter. Further at the end of the quarter, no complaint was pending
to be resolved.
8.
Previous quarter's figures have been regrouped and
rearranged, wherever necessary.
WEB SITE DETAILS
BOARD OF DIRECTORS
Vineet Jain-
Non-Executive Chairman of the Board
Mr. Vineet Jain is Non-Executive Chairman of the Board of Entertainment
Network (India) Ltd. A trustee and board member of several organizations, Mr.
Vineet Jain - Chairman and Non - Executive Director (ENIL) holds a Bachelor's
degree (B. Sc.) in International Business Administration in Marketing from
Switzerland. As the Managing Director of Bennett, Coleman & Company
Limited, Mr. Jain is acknowledged as a thought leader in transforming the Times
Group from a publishing house to a diversified media conglomerate. He has made
a difference to the landscape of the new age media in India. His leadership in
the domain of Internet, Radio and Out of Home has added a new impetus to the
categories. He is on the managing committees of philanthropic organizations
viz. The Times Foundation, The Times of India Relief Fund and the S.P. Jain
Foundation. Mr. Jain is also a board member of The Press Trust of India
Limited.
Ravindra Dhariwal - Non-Executive Director
Reuters Biography (Entertainment Network (India) Limited)
Mr. Ravindra Dhariwal is Non-Executive Director of Entertainment Network
(India) Limited. Mr. Dhariwal is the Executive Director and CEO, Bennett,
Coleman and Company Limited. Prior to this Mr. Dhariwal was the Vice President,
Franchise, SE Asia, PepsiCo International. During his career, he has held
positions at companies like Hindustan Lever Limited, Rexona Prop. Limited -
Sydney, Pepsi Foods Industries and PepsiCo International. He holds a B. Tech
degree from IIT, Kanpur and a post graduate diploma in management from IIM,
Calcutta.
Education - B Chemical Engineering, Indian Institute of Technology,
Kanpur
Ravindra Kulkarni-
Independent Non-Executive Director
Mr. Ravindra Kulkarni is an Independent Non-Executive Director of
Entertainment Network (India) Limited. Mr. Kulkarni holds a Masters degree in
Law from University of Mumbai. Having been in the legal arena for four decades,
Mr. Kulkarni has experience as a legal practitioner particularly on matters
relating to foreign collaborations, joint ventures, mergers and acquisitions,
capital markets, public offerings for listing of securities in India as well as
in international markets, infrastructure projects, etc. He is a national
partner of M/s. Khaitan and Co., one of India's law firms and heads their Mumbai
office. He is on the Boards of several listed companies as an independent
director. He is also a member of the Advisory Committee and also a faculty
member of the Post Graduate Diploma Course in Securities Law at the Government
Law College, Mumbai.
Education - M Law, University of Mumbai
N. Kumar-
Independent Non-Executive Director
Shri. N. Kumar is an Independent Non-Executive Director of Entertainment
Network (India) Limited. Mr. N. Kumar, an Engineering Graduate in Electronics
and Communication, is the Vice - Chairman of The Sanmar Group, a well known
Industrial Group in India that has interests in Chemicals, Engineering and
Shipping. He is the Honorary Consul General of Greece in Chennai. Mr. Kumar is
an active spokesperson of industry and trade and was the President of
Confederation of Indian Industry (CII), a industrial body. He also participates
in other apex bodies. He is also on the Board of several public limited
companies. Mr. Kumar carries with him experience in the sphere of Technology, Management
and Finance.
Education - BE Electronics and Communications Engineering, Anna
University
Prashant Panday-
Chief Executive Officer, Executive Director
Mr. Prashant Panday is Chief Executive Officer, Executive Director of
Entertainment Network (India) Limited since July 01, 2010. Mr. Prashant Panday
is an Engineering graduate in Electronics and Communications, and has done his
PGDM from IIM, Bangalore (1990). Mr. Panday is the Executive Director and Chief
Executive Officer of the Company. He has been associated with the Company since
August 2000 and has played a key role in bringing in the radio revolution in
India. Over the last 10 years, he has played a role in making Mirchi the #1
radio brand in the Country in terms of listenership (IRS Q1,2010: 41 million -
next brand 22 million) as well as revenues (Rs 230 crores in FY10 - ahead even
of AIR). In 2008, Mirchi was rated the #1 media brand - ahead of The Times of
India and Star Plus - in the IMRB- Pitch survey. He leads a team of about 800
professionals in the Company. Mr. Panday has total experience of 21 years in
industries ranging from Advertising, Banking, FMCG and Media. Prior to joining
the Company, he has worked with Citibank, Pepsi, HUL, Mudra, Modi Revlon. His
areas of strength include Marketing & Sales, Analytics and Strategy and
People management. Mr. Panday is the Chairman of the FICCI Radio committee, the
Sr VP in the Association of Radio Operators of India (AROI), a member of the
MRUC Governing Board, and a member of the FICCI Entertainment Committee. He
also served as a member of the Ministry of I&B's committee on fighting
Piracy. He is a speaker at industry forums.
Education - B Electronics and Communications Engineering, Gujarat
University
A. P. Parigi -
Non-Executive Director
Mr. A. P. Parigi is Non-Executive Director of Entertainment Network
(India) Limited. An alumnus of the Delhi School of Economics and Faculty of
Management Studies, of the University of Delhi, Mr. A. P. Parigi has for the
past 2 decades held senior positions in industries. Prior to joining the Times
Group, he was the CEO of BPL Mobile, Mumbai. After he stepped down as the
Managing Director - ENIL, he joined Eros International Media Ltd. as the
Managing Director and Group CEO - India operations - from October 2009 till
February 2010. He was awarded the 2007 IMM (Institute of Marketing and
Management) Award for Excellence as Top CEO - 2007 at the 34th World Marketing
Congress. In April 2009, he was awarded The William F Glaser'53, 'Rensselaer's
Entrepreneur of the Year', in Troy, Albany , USA . June 2010 - Member, The
Oxford University, Said Business School, Business Advisory Counsel. Mr. Parigi
was honored with the Life Time Achievement Award by the World Brand Congress in
2009. Apart from being a guest speaker at various forums, Mr. Parigi has been
serving on several committees of associations like Federation of Indian
Chambers of Commerce and Industry (FICCI). In the past, he has been an active
member of the Cellular Operators Association of India (COAI), besides chairing
several seminars at global forums like The World GSM Congress 2000. Mr. Parigi
serves on the Boards of several companies including Bennett, Coleman and
Company Limited, Times Global Broadcasting Company Limited, Absolute Radio, UK
etc.
Education - M Sociology, University of Delhi
M Business
Administration, University of Delhi
B Economics,
University of Delhi
NEWS
PRESS REALEASE
Economic Times (India)
12 July 2011
By By Rajesh Naidu, The Economic Times, India
[What follows is
the full text of the news story.]
July 12--India's
radio industry is readying for a makeover with the government's approval to a
plan to allocate new radio licences through e-auction and increased foreign
investment limit of 26 percent.
Though the issuing
of licences will take a little over four years, in the long-term the move will
boost advertising revenue, promote business consolidation and lower expansion
cost, said analysts and industry experts.
One of the major
beneficiaries of enhanced spectrum space would be Entertainment Network India,
which operates India's leading private FM radio Radio Mirchi.
ENIL is debt free
and has cash of about Rs 108 crore on its balance sheet. Among other listed
players in the space, Reliance Broadcast Network and Next Mediaworks of Mid-day
Multimedia are still loss-making on a standalone basis.
The government has
approved allocation of 839 radio stations covering 227 cities through
e-auction. Currently, FM radio services are present in 86 cities with 330
stations. The availability of multiple frequencies will help radio players
diversify their offerings.
FM radio channels,
which currently air only music programmes, will be able to start news and
current affairs programmes and broaden listener base.
Also, radio
players can now operate more than one channel in a city where there are minimum
three operators if the number of channels per player does not exceed 40 percent
of total. Lesser the number of players, greater will be the chances of cashing
in on advertising revenue.
Radio advertising
as a percentage of total media advertising is seen increasing to close to 4
percent in phase-II of spectrum allocation from 1.5 percent in phase-I. Thus,
phase-III would generate more advertising interest in the radio industry. The
industry is likely to grow at a CAGR of 20 percent in the next five years,
analysts said.
The lowering of
the lock-in period for ownership of a radio frequency to three years from five
years will help the industry consolidate.
Loss-making radio
players would sell their frequencies and exit, while strong and profitable
players would acquire these frequencies. The possible takeover of smaller
players by their larger counterparts will expand listener base and advertising
pie.
Another recent
development that has benefitted radio companies is the reduction of royalty
payment to 2 percent of net revenues of each station from per-hour charges.
This has helped companies lower cost and will help in expansion.
Note: ENIL is a
subsidiary of Times Infotainment, part of BCCL, which publishes The Times of
India and The Economic Times newspapers.
SHARES OF INDIAN
BROADCASTING FIRMS SOAR ON GOV'T GUIDELINES
Asia Pulse Business wire
08 July 2011
[What follows is the full text of the news story.]
MUMBAI,
July 8Asia Pulse - Shares of Indian broadcasting companies that own radio
stations on Thursday surged in the range of 1-15 per cent after the government
cleared guidelines of the much-delayed FM Radio Phase-III expansion.
Shares
of Reliance Broadcast (BSE:533143) among others rallied and settled for the day
at Rs 86.10, up 7.09 per cent after witnessing an intra-day high of Rs 91.40 on
the BSE.
TV
on Thursday network ended the day at Rs 66.25 (up 2.71 per cent), Jagran Prakashan
was up nearly 1 per cent at Rs 121.75, Entertainment Network India closed the
day at Rs 278.75, up 5.75 per cent on the BSE, Next Mediaworks was up 14.75 per
cent at Rs 6.69.
Analysts
said stocks of radio operators surged after the government cleared guidelines
that will allow private radio channels to broadcast news of All India Radio and
enable revenue generation of Rs 1,733 crore from the auction of license for
services in 227 cities.
Market
analysts welcomed the decision and said that it is a positive move, which has
come into effect after being in the pipeline for more than two years.
A
meeting of the Cabinet chaired by Prime Minister Manmohan Singh also approved
hiking of foreign investment limit on private FM radio broadcasting company to
26 per cent from the current 20 per cent.
The
Phase-I and Phase-II policies have resulted in a total revenue accrual of about
Rs 1,733 crore (US$390 million) up to May 31, 2011 by way of one time entry
fee, migration fee and annual fee among others.
The
uptrend in the counter was in tandem with the broader market which closed in
the positive zone. The BSE benchmark Sensex on Thursday spurted by over 350
points to regain 19,000 mark after more than two months. Similarly, the
broad-based National Stock Exchange index Nifty rose by 103.50 points to
5,728.95.
BENCHMARKS REVERSE
INITIAL GAINS ON PROFIT BOOKING
Accord Fintech (India)
08 July 2011
India, July 08 -- The Indian equity markets have made the positive start
tracking firm global cues but, slipped into the red on the back of profit
booking witnessed in some of the blue-chip companies. However, the global cues
continued to remain supportive as the US markets surged overnight after getting
good reports that private employers stepped up hiring in June while, most of
the Asian markets were trading in the positive terrain at this point of time.
Back home, markets reversed all its initial gains on the back of profit booking
witnessed in mining and metal stocks which tumbled on reports that a panel of
ministers has approved the draft Mining Bill, which calls for miners to give to
local communities an amount equivalent to royalties so as to compensate people
displaced by such projects. On the sectoral front, auto, technology and realty
remained the top gainers while, metal, public sector undertaking and consumer
durables remained the top losers on the BSE sectoral space. Meanwhile, Media
stocks like Reliance Broadcast Network, Entertainment Network India and BAG
Films and Media edged higher in the trade after the announcement of Phase III
of FM radio rollout. The broader indices were struggling to get some traction
and were trading flat at this point of time while, the market breadth has made
a positive start; there were 1,078 shares on the gaining side against 771 shares
on the losing side while 72 shares remained unchanged.� The BSE Sensex opened
at 19,084.06; about 6 points higher compared to its previous closing of
19,078.30, and has touched a high and a low of 19,131.70 and 19,018.49
respectively. The index is currently trading at 19,068.18, down by 10.12 points
or 0.05%. There were 14 stocks advancing against 16 declines on the index. The
overall market breadth has made a negative start with 56.12% stocks advancing
against 40.14% declines. The broader indices too were trading flat; the BSE Mid
cap and Small cap indices were up by 0.02% and 0.14% respectively. The top
gaining sectoral indices on the BSE were, Auto up by 0.85%, TECk up by 0.55%,
Realty up by 0.52%, CD up by 0.47% and IT up by 0.21%. While, Metal down by
2.36%, PSU down by 0.93%, CG down by 0.29%, Bankex down by 0.20% and Oil and
Gas down by 0.19% were the top losers on the index. The top gainers on the
Sensex were Bharti Airtel up by 2.51%, DLF up by 1.05%, Hero Honda up by 0.87%,
HDFC up by 0.86% and M&M was up by 0.81%.On the flip side, Sterlite
Industries down by 3.70%, Hindalco down by 3.50%, Jindal Steel down by 1.94%,
Tata Steel down by 1.82% and ICICI Bank down by 0.88% were the top losers on
the index. Meanwhile, with the country's weekly food inflation at seven-week
low of 7.61% for the week ended June 25 on the back of cheaper vegetables,
pulses and potatoes. In the previous week it was 7.78%. Finance Minister Pranab
Mukherjee said, 'There is inflationary pressure in the system and these weekly
variations (in food inflation numbers) are mainly because of base
effect."However, weekly food inflation is showing signs of moderation,
according to the government data released on July 7, food inflation reduced to
7.61% for the week ended June 25.� For the week ended June 25, on an annual
basis, all the three items i.e. food items, non-food primary articles and fuel
& power saw a marginal plunge, however, fuel index increased by 3.8% or 6.1
points to 166.3 from 160.2. On this, Finance Minister said 'This six points
increase in mainly because of enhancement of prices of diesel, kerosene and
LPG. That has its impact. 'He further said the overall inflation in June could
see some upward movement, from 9.06% recorded in May. As per the government
data, pulses became over 9% cheaper year-on-year during the period under
review. Prices of vegetables also came down by 8.74%, while potatoes became
2.13% cheaper on an annual basis. However, prices of other food items remained
high during the week. The latest numbers on the rate of price rise of food
items are the lowest since the week ended May 7, when food inflation stood at
7.47%. Headline inflation in the country stood at 9.06% in May. The overall
inflation for the month of June is expected to rise further because of the
government's price hike of diesel and other petroleum products which account
for more than 5.5% of WPI. Last month government hiked the prices of diesel,
kerosene and domestic cooking gas by Rs 3/- litre, Rs 2/- litre and Rs 50 per
cylinder. However, the hike in prices of diesel, cooking gas and kerosene
announced on June 24 by the government is yet to be reflected in these numbers.
Finance Minister had on July 6 cautioned against the 'suppressed component' of
inflation. 'There is a significant suppressed component of inflation as the
increase in international crude oil prices has not been passed on completely
despite increase in domestic administered oil prices effected in June, 2010,
and June, 2011,' he said. The S&P CNX Nifty opened at 5,734.65; about 6
points higher compared to its previous closing of 5,728.95, and has touched a
high and a low of 5,740.40 and 5,705.55 respectively. The index is currently
trading at 5,719.95, down by 9 points or 0.16%. There were 21 stocks advancing
against 29 declines on the index. The top gainers of the Nifty were Bharti
Airtel up by 2.74%, M&M up by 1.22%, DLF up by 1.13%, Hero Honda up by
1.12% and ONGC up by 0.96%.Sesa Goa down by 4.33%, Sterlite Industries down by
3.44%, Hindalco down by 3.40%, SAIL by 2.22% and Tata Steel was down by 1.87%,
were the major losers on the index.Most of the Asian markets were trading in
the green; Shanghai Composite was up 5.86 points or 0.21% to 2,800.13, Hang
Seng was up 241.32 points or 1.07% to 22,771.50, Jakarta Composite was up 55.92
points or 1.42% to 3,995.39, Nikkei 225 was up 62.31 points or 0.62% to
10,133.45 and Straits Times was up by 18.26 points or 0.58% to 3,144.13.On the
flip side, KLSE Composite was down 3.46 points or 0.22% to 1,586.78, Seoul
Composite was down 3.25 points or 0.15% to 2,177.34 and Taiwan Weighted was
down by 25.06 points or 0.29% to 8,748.36. Published by HT Syndication with
permission from Accord Fintech.
BENCHMARKS
CONTINUE FIRM TRADE; SENSEX SURPASS 18,900 MARK
Accord Fintech (India)
07 July 2011
India, July 07 -- Indian equity indices continued its firm trade
hovering around day's high on optimistic note by investors on back of the
second successive moderation in weekly inflation numbers for the week ended
June 25. Market participants were seen piling up the positions in Capital
Goods, FMCG and Realty while there was hardly any selling pressure seen across
any sectors. Also, stocks like HDFC Bank, CRISIL, Bata India, Rallis India,
Gujarat FluoroChemicals, Carborundum Universal, Sabero Organics and Zydus
Wellness hit new high. Today's new listing Birla Pacific Medspa and Rushil
Decor made a good debut and were trading firm on the bourses. Sun TV Network
has dipped on reports that Tamil Nadu Chief Minister J Jayalalithaa will
thoroughly examine an unauthorized fibre cable network from Union Minister
Dayanidhi Maran's house in Chennai to the Sun TV office. Indo Asian Fusegear
has soared after the company announced the buyback of its own equity shares.
The board of directors of the company will meet on July 09, 2011, to consider
buyback of equity shares in accordance with the SEBI buyback regulations and
subject to regulatory approvals while, low cost airline Spice Jet has some big
expansion plans lined up this financial year. But much would depend on how
effectively it will be able to raise capital to execute those plans.� On the
global front, Asian markets are exhibiting mixed trend, while the European
markets were trading in green on subdued note. Back home, the NSE Nifty and BSE
Sensex were trading above their psychological 5,650 and 18,900 levels,
respectively. The market breadth on the BSE was almost equal in the ratio of
1804:950 while, 129 scrips remained unchanged. Moreover, shares of radio
operators like Reliance Broadcast Network, Entertainment Network India, TV
Today Network, HT Media, Jagran Prakashan, D.B. Corp, Next Mediawork and B.A.G.
Films & Media were seen trading firm on reports that the union cabinet has
approved auctions for the third phase of FM radio privatization from which it
is expecting to raise Rs 1,733 crore. According to reports, the cabinet also
approved to raise the foreign investment limit in the sector from the current
20% to 26%. Following a second phase expansion where it granted more than 200
licenses, in the third phase, the government reportedly plans to auction 839
private radio station licenses in about 227 towns and cities. Also, SKS
Microfinance is locked in its upper circuit limit on reports that the Union
ministry of finance has readied the Micro Finance Institutions (Development and
Regulation) Bill, 2011, to be placed before Parliament for approval that makes
the RBI a regulator for the sector. HDFC Bank is at new high where the board of
directors has fixed July 16, 2011, as the record date for stock split.
Kingfisher Airlines (KFA) has seen two of its group company United Breweries
(Holdings) and Kingfisher Finvest India having pledge their entire holding in
the company. The group companies have taken this step as part of the
requirements under the airline's debt recast package. United Breweries has
pledged 19.96 crore shares, or 40.1 percent of KFA's total outstanding shares
while Kingfisher Finvest has pledged 6.35 crore shares amounting to 12.75
percent of the outstanding shares. The BSE Sensex is currently trading at
18,933.38 up by 206.41 points or 1.10% after trading as high as 18,971.95 and
as low as 18,767.25. There were 29 stocks advancing against 1 decline on the
index. The broader indices were trading on a positive note; the BSE Mid cap and
Small cap indices advanced by 0.77% and 0.97% respectively.� On the BSE
sectoral space, Capital Goods up 1.57%, FMCG up 1.54%, Realty up 1.41%,
Consumer Durables up 1.25% and Health Care up 1.16% were the major gainers,
while there were no losers on the index. The top gainers on the Sensex were
Bharti Airtel up by 3.08%, Hindalco up by 2.22%, L&T up by 2.21%, Jindal
Steel up 2.20% and NTPC up 2.06%. On the flip side, Sterlite down by 0.79% was
the lone loser on the index. Meanwhile, India's food inflation measured by the
Wholesale Price Index (WPI) has moderated to 7.61% for week ended June 25 from
7.78% in previous week. This moderation in food inflation is due to the reduced
prices of vegetables, pulses and potato. As per the official data, pulses
became over 9% cheaper year-on-year during the period under review. Prices of
vegetables also came down by 8.74%, while potatoes became 2.13% cheaper on an
annual basis. This seven week low food inflation has come as good news for the
government. According to the data released by the Ministry of Commerce and
Industry on July 7, food price index declined to 7.61% on annual basis during
week ended June 25, from an annual rise of 7.78% recorded in the last week.
However, the index for 'Food Articles' group which has a weight of 14.34% in
WPI, rose by 0.5 % to 190.8 (Provisional) from 189.8 (Provisional) for the
previous week due to higher prices of coffee (21%), mutton (6%), gram and
fruits and vegetables (2% each) and jowar and masur (1% each). However, the
prices of ragi (3%), tea (2%) and fish-marine, moong, condiments and spices,
bajra, egg, urad and barley (1% each) declined.The index for 'Non-Food
Articles' group, which has a weight of 4.26%, declined by 0.4% to 179.6
(Provisional) from 180.4 (Provisional) for the previous week due to lower
prices of raw jute (12%), flowers (8%) and raw rubber (3%).� However, the
prices of linseed (17%), safflower (6%), gingelly seed (4%), raw silk (3%),
fodder (2%) and gaur seed, sunflower and soyabean (1 % each) moved up. The index
for 'Minerals' group declined by 0.4 percent to 314.7 (Provisional) from 316.0
(Provisional) for the previous week due to lower prices of crude petroleum
(1%). As a result, the broader 'primary Articles' Index, which has a weight of
20.12% in WPI, rose by 0.2% to 197.8 (Provisional) from 197.4 (Provisional) for
the previous week. The annual rate of inflation, calculated on point to point
basis, stood at 11.56% (Provisional) for the week ended June 25 as compared to
11.84% (Provisional) for the previous week June 18. The index for 'fuel and
power' with a weight of 14.91% in overall WPI, rose by 3.8% to 166.3
(Provisional) from 160.2 (Provisional) for the previous week due to higher
prices of kerosene (18%), LPG (15%) and high speed diesel (9%).� However, the
prices of bitumen and furnace oil (4% each) and naphtha (3%) declined. The
annual rate of inflation, calculated on point to point basis, stood at 12.67%
(Provisional) for the week ended June 25 as compared to 12.98% (Provisional)
for the previous week June 18.The government expects the monsoon to be normal
this year and expected to have a moderating impact on food inflation numbers.
However, Finance Minister Pranab Mukharjee on July 6 said, that the there is a
certain urgency in addressing the strong structural component in food inflation
including 'Protein Inflation'. There are also some concerns due to elevated
global food prices, he added. The S&P CNX Nifty is currently trading at
5,687.50, higher by 62.05 points or 1.10% after trading as high as 5,697.95 and
as low as 5,632.95. There were 48 stocks advancing against 1 decline and 1
stock remained unchanged on the index. The top gainers of the Nifty were Bharti
Airtel up by 3.23%, L&T up by 2.35%, Jindal Steel up by 2.23%, Hindalco up
by 2.22% and Dr Reddys up by 2.00%. On the flip side, Sterlite down by 0.90%
was the lone loser on the index.Asian markets are exhibiting mixed trends as
Hang Seng added 0.06%, Jakarta Composite climb 0.66%, Straits Times increased
0.42% and Seoul Composite advanced 0.43%. On the flipside, Shanghai Composite
slipped 0.58%, KLSE Composite inched down 0.07%, Nikkei 225 shed 0.11%, and
Taiwan Weighted declined 0.58%.The European markets were trading in green with,
France's CAC 40 added 0.33%, Germany's DAX gained 0.27% and London's FTSE rose
0.32%. Published by HT Syndication with permission from Accord Fintech.
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. 44.46 |
|
|
1 |
Rs.71.67 |
|
Euro |
1 |
Rs.62.94 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
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.