MIRA
INFORM REPORT
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Report Date : |
11.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
NEW DELHI TELEVISION LIMITED |
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Registered Office : |
207, Okhla Industrial Estate, Phase III, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
08.09.1988 |
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Com. Reg. No.: |
55-33099 |
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Capital Investment
/ Paid-up Capital : |
Rs.257.838 millions |
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CIN No.: [Company
Identification No.] |
L92111DL1988PLC033099 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELN01256D |
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PAN No.: [Permanent
Account No.] |
AAACN0865D |
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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 : |
Production and Broadcasting of Television Software |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
B [29] |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 5900000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. There appears
huge accumulated losses being recorded by the company. Profitability is under
pressure. However, trade relations are fair. Business is active. Payments are
reported to be slow. The company can be considered for business with some cautions. |
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 – June 30, 2010
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Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
207, Okhla Industrial Estate, Phase III, |
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Tel. No.: |
91-11-41577777 / 26446666 |
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Fax No.: |
91-11-29231740 / 41735110 |
DIRECTORS
As on 04.08.2010
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Name : |
Dr. Prannoy Roy |
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Designation : |
Chairman and Whole-Time Director |
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Name : |
Mrs. Radhika Roy |
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Designation : |
Managing Director |
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Name : |
Mr. K V L Narayan Rao |
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Designation : |
Chief Executive Officer and Whole-Time Director |
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Name : |
Mr. N R Narayana Murthy |
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Designation : |
Non Executive Independent Director Chairman, Infosys Technologies Limited |
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Name : |
Mr. Amal Ganguli |
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Designation : |
Non Executive Independent Director Former Managing Director PWC |
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Name : |
Mr. Vijaya Bhaskar Menon |
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Designation : |
Non Executive Independent Director |
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Name : |
Ms. Indrani Roy |
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Designation : |
Non Executive Independent Director |
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Name : |
Mr. Pramod Bhasin |
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Designation : |
Non Executive Director |
KEY EXECUTIVES
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Name : |
Mr. Anoop Singh Juneja |
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Designation : |
Company Secretary and Compliance Officer |
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Audit Committee : |
·
Mr. Amal Ganguli ·
Mr. Vijaya Bhaskar Menon ·
Ms. Indrani Roy ·
Mr. K V L Narayan Rao ·
Mr. Pramod Bhasin |
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Remuneration Committee : |
·
Mr. Vijaya Bhaskar Menon ·
Mr. Amal Ganguli ·
Ms. Indrani Roy |
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Shareholder’s and Investors Grievance Committee : |
·
Ms. Indrani Roy – Chairperson ·
Dr. Prannoy Roy ·
Mrs. Radhika Roy ·
Mr. K V L Narayan Rao |
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ESOP Committee : |
·
Mrs. Radhika Roy ·
Vijaya Bhaskar Menon ·
Ms. Indrani Roy |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(As on 31.03.2011)
|
Category |
No. of Shares |
Percentage of
Holding |
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Shareholding of Promoter and Promoter Group |
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Indian |
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Individuals/Hindu Undivided Family |
20801240 |
32.26 |
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Bodies Corporate |
18813928 |
29.18 |
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Sub Total [A] |
39615168 |
61.45 |
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Public shareholding |
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Institutions |
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Mutual Funds/Axis |
596854 |
0.93 |
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Financial Institutions/ Banks |
164957 |
0.26 |
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Insurance Companies |
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Foreign Institutional Investors |
11389498 |
17.67 |
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Sub Total |
12151309 |
18.85 |
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Non-institutions |
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Bodies Corporate |
3737729 |
5.80 |
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Individuals |
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I. Individual shareholders holding nominal share capital up to
Rs.0.100 million. |
7347762 |
11.40 |
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II. Individual shareholders holding nominal share capital in excess of
Rs.0.100 million. |
1283950 |
1.99 |
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Any Other |
335349 |
0.52 |
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- Trust |
1600 |
0.00 |
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- Clearing Members |
174935 |
0.27 |
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- Non Resident Indians |
158814 |
0.25 |
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Sub Total (B) |
24856099 |
38.55 |
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Total
(A) + (B) |
64471267 |
100.00 |
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Shares
held by custodians and against which depository receipts have been
issued (C) |
-- |
-- |
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Total (A) + (B) +(C) |
64471267 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Production and Broadcasting of Television Software |
GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
Not Available |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountant |
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Address : |
Building – 8, 7th and 8th Floor, Tower-B, |
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Tel. No.: |
91-124-4620000 |
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Fax No.: |
91-124-4620620 |
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Associates : |
·
NDTV Studios Limited ·
NDTV ( ·
NDTV Worldwide Mauritius Limited ·
NDTV India Plus Limited ·
NDTV News 24X7 Limited ·
NDTV Business Limited ·
New Delhi Television Media Limited ·
NDTV Hindu Media Limited ·
NDTV Delhi Limited ·
NDTV Worldwide Private Limited ·
Astro Awani Networks Limited |
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Subsidiaries : |
·
NDTV Media Limited ·
NDTV New Limited ·
NDTV Emerging ·
·
NDTV ·
NDTV Networks PLC ·
NDTV Convergence Limited ·
NDTV Imagine Limited ·
Alliance Lumiere Limited ·
Imagine Showbiz Limited ·
NDTV Imagine Films Limited ·
NDTV Labs Limited ·
NDTV Lifestyle Limited ·
Metronation Chennai Television Private
Limited ·
NDTV One Holdings Limited ·
NDTV Two Holdings Limited ·
NDTV Three Holdings Limited ·
NDTV Four holdings AB ·
NDTV ( ·
NDTV |
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Joint Venture : |
NGEN media Services Private Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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87,500,000 |
Equity Shares |
Rs.4/-each |
Rs.350.000 millions |
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Issued Capital :
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No. of Shares |
Type |
Value |
Amount |
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64,482,517 |
Equity Shares |
Rs.4/-each |
Rs.257.930 millions |
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Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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64,459,527 |
Equity Shares |
Rs.4/-each |
Rs.257.838 millions |
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Out of the above:
(a) 22,990 (Previous Year 1,764,425) Equity shares of Rs. 4/- each have been
issued but not yet subscribed pursuant to Employee Stock Purchase Scheme 2009
(ESPS-2009) (Refer Note B-2 on Schedule 21).
(b) 7,509,870 (Previous Year 7,509,870) Equity Shares of Rs. 4/- each
were allotted as fully paid up by way of Bonus Shares by capitalisation of
Profits and Revaluation Reserve.
(c) 33,651,690 (Previous Year 33,651,690) Equity Shares of Rs 4/- each
were allotted as fully paid up by way of Bonus Shares by capitalisation of
Securities Premium.
(d) 9,077,528 (Previous Year 9,077,528) Equity Shares of Rs 4/-each were
allotted as fully paid up pursuant to a contract without payment being received
in cash.
(e) 1,915,460 (Previous Year 1,910,460) Equity shares of Rs. 4/- each
allotted to employees of the Company on exercise of the vested stock options
under Employee Stock Option Plan - ESOP 2004 of the. Further, 1,741,435
(Previous Year- Nil) Equity shares of Rs. 4/- each allotted to the eligible
employees of the Company under ESPS 2009
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
257.838 |
250.852 |
250.326 |
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2] Employee Stock Options Outstanding |
1.785 |
138.000 |
337.245 |
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3] Reserves & Surplus |
2016.604 |
1884.041 |
1784.379 |
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4] (Accumulated Losses) |
[779.295] |
[574.131] |
0.000 |
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NETWORTH |
1496.932 |
1698.762 |
2371.950 |
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LOAN FUNDS |
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1] Secured Loans |
1363.811 |
1140.790 |
801.825 |
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2] Unsecured Loans |
403.666 |
477.008 |
128.327 |
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TOTAL BORROWING |
1767.477 |
1617.798 |
930.152 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3264.409 |
3316.560 |
3302.102 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1899.100 |
2053.705 |
1444.160 |
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Capital work-in-progress |
47.448 |
16.182 |
276.467 |
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INVESTMENT |
362.422 |
494.237 |
401.401 |
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DEFERREX TAX ASSETS |
112.391 |
112.391 |
65.665 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
3.340
|
3.647 |
11.073
|
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Sundry Debtors |
1367.575
|
1215.743 |
1445.778
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Cash & Bank Balances |
25.688
|
36.083 |
41.714
|
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Other Current Assets |
0.000
|
0.000 |
559.432
|
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Loans & Advances |
574.193
|
603.265 |
0.000
|
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Total
Current Assets |
1970.796
|
1858.738 |
2057.997
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
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Sundry Creditors |
606.955
|
628.606 |
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Other Current Liabilities |
500.766
|
494.535 |
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Provisions |
20.027
|
95.552 |
81.922
|
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Total
Current Liabilities |
1127.748
|
1218.693 |
943.588
|
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Net Current Assets |
843.048
|
640.045 |
1114.409 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3264.409 |
3316.560 |
3302.102 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Business Income |
3143.897 |
3088.173 |
3056.224 |
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Other Income |
70.753 |
321.264 |
128.764 |
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TOTAL (A) |
3214.650 |
3409.437 |
3184.988 |
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Less |
EXPENSES |
|
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|
|
|
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Production Expenses |
503.052 |
737.611 |
606.082 |
|
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Personnel Expenses |
924.751 |
1347.581 |
958.872 |
|
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|
Operations and Administrative Expenses |
794.424 |
1030.788 |
558.060 |
|
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Marketing, Distribution and Promotion Expenses |
738.642 |
813.293 |
609.401 |
|
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Employee Stock Compensation Expenses |
0.040 |
[166.250] |
118.343 |
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TOTAL (B) |
2960.909 |
3763.023 |
2850.758 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
253.741 |
[353.586] |
334.230 |
|
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|
|
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Less |
FINANCIAL
EXPENSES (D) |
194.669 |
146.477 |
38.545 |
|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
59.072 |
[500.063] |
295.685 |
|
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|
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
245.680 |
242.055 |
203.824 |
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|
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|
|
|
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|
PROFIT BEFORE
TAX (E-F) (G) |
[186.608] |
[742.118] |
91.861 |
|
|
|
|
|
|
|
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Less |
TAX (I) |
18.556 |
[10.289] |
49.061 |
|
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|
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PROFIT AFTER TAX
(G-I) (J) |
[205.164] |
[731.829] |
42.800 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
[574.131] |
157..698 |
173.519 |
|
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|
|
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|
|
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Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
-- |
-- |
|
|
|
|
Proposed Dividend |
-- |
-- |
50.106 |
|
|
|
Corporate Dividend Tax |
-- |
-- |
8.515 |
|
|
BALANCE CARRIED
TO THE B/S |
[779.295] |
[574.131] |
157.698 |
|
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EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
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|
Advertisement Revenue |
5.425 |
34.790 |
NA |
|
|
|
Subscription Revenue |
110.084 |
67.833 |
NA |
|
|
|
Other Business Income- Consultancy fees etc. |
0.693 |
434.369 |
NA |
|
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TOTAL EARNINGS |
116.202 |
536.992 |
NA |
|
|
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|
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IMPORTS |
|
|
|
|
|
|
|
Stores & Spares |
11.596 |
2.511 |
13.640 |
|
|
|
Capital Goods |
12.255 |
104.232 |
219.282 |
|
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|
Video Tapes |
3.393 |
6.984 |
4.020 |
|
|
TOTAL IMPORTS |
27.244 |
113.727 |
236.942 |
|
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|
|
|
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|
Basic/ Diluted
Earnings Per Share (Rs.) |
[3.26] |
[11.68] |
0.68 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4thQuarter |
|
Sales Turnover |
686.100 |
683.700 |
969.700 |
1115.100 |
|
Total Expenditure |
826.700 |
916.300 |
1010.200 |
953.900 |
|
PBIDT (Excl
OI) |
[140.600] |
[232.600] |
[40.500] |
161.200 |
|
Other Income |
7.400 |
3.700 |
42.500 |
32.300 |
|
Operating Profit
|
[133.200] |
[228.900] |
1.700 |
193.500 |
|
Interest |
46.700 |
48.100 |
61.700 |
45.300 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
[307.500] |
|
PBDT |
[179.900] |
[277.000] |
[60.000] |
[159.400] |
|
Depreciation |
62.400 |
65.700 |
80.900 |
64.000 |
|
Profit
Before Tax |
[242.300] |
[342.700] |
[140.900] |
[223.400] |
|
Tax |
[1.100] |
0.000 |
29.900 |
8.400 |
|
Reported PAT |
[241.200] |
[342.700] |
[170.800] |
[231.800] |
|
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 |
[241.200] |
[342.700] |
[170.800] |
[231.800] |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
[6.38]
|
[21.46] |
1.34
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
[5.94]
|
[24.03] |
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
[4.82]
|
[21.75] |
2.62
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
[0.12]
|
0.44 |
0.04
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.93
|
1.67 |
0.79
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.74
|
1.53 |
2.18
|
LOCAL AGENCY FURTHER INFORMATION
The Year
During the year, the Company achieved turnover of Rs. 3143.900 Millions
and PBDITof Rs. 253.800 Millions The Company's profit before tax and ESOP cost
was Rs. (185.600 Millions); Net Profit after tax was Rs. (205.200 Millions) and
earning per share Rs. (3.26) (Basic) and Rs. (3.26) (Diluted).
A detailed review of the Company's operations has been provided in the
Management Discussion and Analysis
Report, which forms part of this document.
Audited Consolidated Financial Statements for the year ended 31st March,
2010 also form a part of this Report.
Demerger
During the year, the Petition filed by the Company for Demerger of its
News and Non-News Business into separate entities was pending before the
Hon'ble High Court of Delhi for its consideration. The matter was listed on
April 8, 2010 for considering the Report of the Regional Director, Ministry of
Corporate Affairs on the Scheme of Arrangement and the compliance of the
directions to publish Notices in the newspapers.
However, in the process of restructuring of its business, the Company
had entered into definitive Agreements for sale of majority stake in NDTV
Imagine Limited and NDTV Lifestyle Limited, as detailed above.
In view of aforesaid transactions, the companies which added significant
value to the non-news businesses of the Company, would no longer form part of
the NDTV Group. The non-news business, which would be much smaller in size and
value after the consummation of transactions contemplated in the agreements
referenced above, could be held within the Company as an investment, as against
being held in separate legal entities as contemplated in the Scheme of
Arrangement for Demerger. In view of the above, the Company filed an application
before the Hon'ble High Court of Delhi for the withdrawal of the Demerger
Petition. The Hon'ble High Court of Delhi, during the hearing held on April
8,2010, allowed the said application. Accordingly, the Petition filed by the
Company for the Demerger of its news and non-news business into separate
entities was withdrawn.
Scheme of
Amalgamation
In view of the Demerger Petition having been withdrawn by the Company
and in order to achieve operational efficiencies by reduction of managerial and
administrative costs, the Board of Directors in their meeting held on April 30,
2010 granted in-principle approval to the Scheme of Amalgamation
("Scheme") of NDTV Studios Limited, NDTV India Plus Limited, NDTV
Business Limited, New Delhi Television Media Limited, NDTV Delhi Limited, NDTV
Hindu Media Limited, NDTV News 24X7 Limited and NDTV News Limited
(collectively, "Transferor Companies") with the Company
("Transferee Company"). The Board also authorised the Reorganization
Committee of the Board of Directors of the Company to take all the necessary
steps for amalgamation of the Transferor Companies with the Company as deemed
appropriate by the Committee in the best interests of the Company.
In addition to the above, the Company has initiated steps to simplify
the structure of its direct and indirect subsidiaries in
Subsidiary
Companies and Growth
During the year, NDTV Networks Pic, the holding company for the Non-news
subsidiaries of the group in
MANAGEMENT'S
DISCUSSION AND ANALYSIS
Restructuring and
Consolidation
After operating in a difficult environment for the first two quarters of
2009-2010, the third quarter proved to be momentous for the Company. The Group
entered into crucial and strategic stake sale agreements with Time Warner for
the sale of a majority stake in NDTV Imagine Limited. The period also marked
the successful conclusion of the restructuring of the subsidiary, NDTV Networks
Pic. With this restructuring, NDTV became cash surplus and debt-free.
These transactions began with the decision to buy back NBC Universal's
26 per cent indirect stake in NDTV Group subsidiary NDTV Networks Pic. The transaction
gave NDTV the opportunity to look for investors in its non-news verticals.
This restructuring process culminated in the decision to enter into an
agreement with Turner Asia Pacific Ventures, Inc. for the sale of most of its
indirect stake in NDTV Imagine Limited, which was held through NDTV Networks
Pic.
The total transaction size was USD 117 Million and involved a sale of 76
per cent of NDTV Imagine for a consideration of USD 67 Million together
with the subscription to fresh shares in Imagine by Turner Asia Pacific
Ventures for USD 50 Million. The transaction was completed on February 23,
2010.
From a difficult financial spot in the middle of 2009 brought about by
the recession and the huge and regular funding needs of NDTV Imagine, the situation
turned advantageous for the Group in the second half of the year. The
restriction ridden bonds have been bought out, debts from banks have been
repaid and Imagine is again viable and in strong hands, no longer a burden.
And, NDTV is debt free.
On completion of all these transactions, the company remains focused on
the news business, where it continues to maintain leadership and highest
credibility.
Making News
NDTV completed 21 years in November 2009. The first episode of NDTV's
pioneering show, The World This Week, was
aired on November 25, 1988. The company's growth has gained it the leadership
position in the news space. NDTV 24x7 is the undisputed leader in the English
news space with 60 per cent viewership according to a recent Neilsen UMAR survey,
making it the most watched channel. NDTV 24x7 was also awarded the Best News Channel by the Indian
Television Academy (ITA).
NDTV India, the Hindi News channel, improved upon its ratings and is
widely recognized as
Hindi News Channel.
Also noteworthy is that NDTV became the only Indian broadcaster invited
to host a debate at the 2010 World Economic Forum which was held in
Davos from 27th to 31st January 2010. NDTV also set up a special studio at
Davos and brought to its viewers 25 hours of live and continuous coverage of
the event spread over 5 days. This special coverage of the WEF Summit at Davos
was telecast in
In another first, the resources of NDTV Profit and NDTV 24x7 were combined
to give an uninterrupted and in-depth analysis of the Railway as well as the
Union Budget. After a host of shows specially devoted to the Union Budget in
the final few days prior to the Finance Minister addressing the nation, NDTV
Profit then went live from across the country and around the world, with
preliminary expectations from the markets, commerce and industry of what the
new Budget had for everyone. Following the live coverage of the Finance
Minister's speech, NDTV carried on with the analysis and preliminary discussion
of the implications of the Budget, and the channels' experienced anchors and
reporters, based with the CM in Delhi, exclusively in the board room of the BSE
in Mumbai and in the top corporate offices across the country, probed into
Corporate India's immediate reaction and outlook.
Traction in
Distribution
NDTV has increased its international footprint with the launch of its
channels in Central Africa -
NDTV has signed a multi-year distribution agreement for all its channels
with Comcast, the largest cable MSO in
This year, a multi-year distribution deal was signed with Airtel DTH for
all NDTV channels. This also includes a deal to power their lifestyle
interactive application. The viewers will now be able to watch their favourite
fashion and lifestyle shows from NDTV Good Times through this lifestyle
interactive application. NDTV is the first broadcaster to have such a tie-up in
this segment. NDTV 24x7 was also the first English news channel to launch the
interactive News application on Airtel DTH as well.
Beyond News
NDTV Convergence's offering, Ndtv.com crossed the 100 million page view
mark for the first time in the month of
December, 09 and has been doing so month on month since then.
NDTV Social, a portal to connect NDTV journalists and anchors with
viewers, was launched during the year. This is the first time anywhere in the
world a media group has integrated its anchors, presenters, programmes and
content into the social stream.
NDTV Convergence announced the launch of www.ndtvsme.com, an SME portal
(Small to Medium Enterprises) in partnership with HP and lndiaMART.com. It will
serve as a one stop destination for SMEs and provide users with information,
transactional platforms and services relevant to their businesses.
With signs of gradual worldwide economic recovery, NGEN is witnessing an
increase in volumes from most of its
core clients. NGEN acquired new clients during this quarter. Amongst the
larger projects is a corporate audio-visual for one of the largest
international technology companies. NGEN has also commenced transcription work
for a MNC media giant. NGEN's delivery standards continue to be exemplary. It
has consistently exceeded both Accuracy and Productivity targets.
NDTV Worldwide has signed a consultancy agreement with
NDTV Worldwide and Beximco Group, the largest private sector industrial
conglomerate in Bangladesh which also manages the leading publication, The Independent, have come
together to launch a 24 hour news and current affairs channel in Bangladesh,
Independent Television.
The Company has launched RedDot Productions, a new, independent
production division that will produce shows not only for all the channels, but
also for other non-NDTV channels. With a talent pool of highly experienced
producers and technical crew, it offers a whole range of services at
competitive prices. These include Documentaries, Corporate Films,
Advertiser-driven Audio-Visuals, Media Consultancy, Learning Aids, Spots and
PSAS, Training Modules and various genres of Television programming ranging
from Travel and Lifestyle to Youth based Shows and Reality.
RedDot aims at leading the country with path-breaking shows and creating
new standards that will bring world class production qualities to
NDTV's Broadcast Training Programme is offered to a small and select
group of aspirants. It has clearly established itself in the media broadcasting
education space with its quality of instruction and credibility. The training
programme, apart from establishing itself in the student community, has also
generated cash surplus of Rs 55 lakhs till February 2010.
In pursuit of
excellence
The last quarter saw the stupendous success of the second edition of the
NDTV-Toyota Greenathon as NDTV once again reaffirmed its commitment to the
environment by solar powering villages across
NDTV also announced its much anticipated and prestigious Indian of the
Year Award 2009. This year, as NDTV
completed 21 years, the award also saluted icons of change for the past
21 years. The Election Commission of India was awarded as
NDTV announced the Right to Information (RTI) Awards in association with
Public Cause Research Foundation (PCRF), an organisation set up by Magsaysay
awardee Arvind Kejriwal to acknowledge those who have isplayed
exemplary commitment to the RTI Act. The first ever RTI Awards honoured
respected Public Information Officers (PIOs), Citizens and Information
Commissioners who have strived through the RTI to make Indian governance
transparent and accountable. The ceremony was held on December 1, 2009 in
NDTV Profit Business Leadership Awards ceremony was held in Mumbai in
October 2009 to acknowledge the most dynamic Indian organizations and best
business leaders.
In 2008, NDTV along with Sanctuary Asia had initiated a mass campaign
Save the Tiger to stop the alarming decline in the number of tigers in
An awards ceremony was held in January 2010 to felicitate the best in
the auto sector, in the highly acclaimed The
Car and Bike Awards. Initiated in the year 2006, the awards have
emerged as the most credible automobile industry awards, presented every year
by NDTV in association with Car
NDTV Good Times has forayed into events. The inaugural event on February
12 saw NDTV Good Times celebrate the new season of its flagship style show I'm Too Sexy for My Shoes. The
theme of the event was 'Sexy shoes' and the invitees included people from the
fashion and film fraternity.
Awards and
Accolades
NDTV has yet again emerged as the channel with the best talent in
journalism and media technology, bagging Commonwealth Broadcasting
Association's (CBA) Broadcasting Awards for 2010. The awards ceremony was held
at
NDTV made a clean sweep at the recently held News Television Awards
2010, bagging a total of 18 of the 30 awards.
The channel was recognised for its exceptional programming in the
following award categories: Best Presented Popular News Show, News Talk Show,
Business Talk Show of the Year, Live Telecast Show (Stock Market), Public
Debate Show of the Year, Entertainment News Show, Promo for a Channel, Promo
Campaign by a News Channel, NDTV India bagged awards in the following
categories: Crime Show, Current Affairs Programme, Show on Environment
Awareness / Social Development Campaign, Entertainment News Show, Lifestyle and
Fashion News Show, TV News Anchor of the Year, Young TV Journalist of the Year,
Sports News Presenter of the Year, Entertainment Critic of the Year.
They the People, hosted by Barkha Dutt, was adjudged as the Best Talk
Show at the Asian Television Awards 2009This is the second time in a row that
the show has won this award.
NDTV Worldwide's technology team was highly commended at the AIB
International Media Excellence Awards held in
FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Overview
The following discussion is based on the audited financial statements,
which have been prepared in compliance with the requirements of the Companies
Act, 1956 and Generally Accepted Accounting Principles (GAAP) in
Financial
Condition
Share Capital
The Company's authorized capital is Rs. 350 million divided into 87.50
million equity shares of Rs. 41- each.
At present there is only one class of shares - equity shares. The issued share
capital of the company has increased by Rs. 6.986 Millions on account of 5,000
shares issued pursuant to "Employee Stock Option Plan 2004" and by
1,741,435 equity shares issued under "Employee Stock Purchase Scheme
-2009". Consequently, the subscribed and paid capital of the Company has
increased by 1,746,435 equity shares. Details of options granted, outstanding
and vested are given elsewhere in the report.
CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT IN
·
During
the year, NDTV Networks Plc. (NNPLC) has raised funds by issuing US $ 100
million convertible bonds due 2012. In connection with this, the Company has
given an undertaking to provide a corporate guarantee for and on behalf if
NNPLC, as and when required. The estimated potential dilution on conversion
will be between 20% to 30%.
·
Bank
Guarantee issued for Rs.3.736 millions. These have been issued in the ordinary
course of business and no liabilities are expected.
·
Claims
against the Company not acknowledged as debts : Rs.82.564 millions.
The
Company had filed a suit recovery of Rs.66.861 millions as its principal debt
along with interest thereon against Doordarshan (DD) in the High Court of Delhi
in February 1998 for various programmes produced and aired between 1994 and
1996. In its rejoinder during the suit proceedings, DD has admitted its debts
of Rs.35.610 millions only but has disputed the balance claim of Rs.31.251
millions and interest claimed. On the contrary, DD has claimed Rs.82.564
millions – Rs.55.492 millions towards telecast fee etc. against various
programmes and Rs.27.072 millions as interest thereon, which has not been
accepted by the Company. The last hearing in the Court in the current fiscal year
has been adjourned, at the request of the counsel of DD to settle between the
parties though a mediation route.
Based
on legal advice and existing contractual agreements with DD, the Company
considers the outstanding debt from DD in its books as recoverable except for
Rs.11.800 millions, which has been provided for and no interest has been
accrued on the outstanding amount.
·
The
company has received legal notices of claims / lawsuits filed against it
relating to infringement of copyrights, trademarks and defamation suits in
relation to the programmes produced by it. In the opinion of the management
supported by legal advice, no material liability is likely to arise on account
of such claims / law suits.
FIXED ASSETS
·
Computer
Software
·
Building
·
Plant
and Machinery
·
Computers
·
Office
Equipment
·
Furniture
and Fixtures
·
Vehicles
·
Helicopter
News:
NDTV FINANCIAL
RESULTS: Q4
HIGH GROWTH – RETURN TO PROFITS
Financial
Highlights
• The standalone revenues for Q4 registered a growth of 30% to
Rs.1150.000 Millions compared to Rs.880.000 Millions in March 2010.
• EBIDTA has increased by more than 100% to Rs.190.000 Millions compared
to Rs. 80.000 Millions in March 2010. Cost controls are in place and the next
year should show further improvements.
• Profit after interest but before exceptional items for the quarter is
at Rs.80.000 Millions compared to a loss of Rs.30.000 Millions in March 2010. A
return to profits is a trend the Company hopes to sustain. The quarter includes
some one time provisions.
• Exceptional items : In the consolidated results one time provisions
have been made as a result of simplifying NDTV group structure
• NDTV Lifestyle - Advertisement revenue for the channel NDTV GoodTimes
is up by 63% in the quarter and increased by 39% annually over the last year. A
major expansion is expected in this successful subsidiary in 2011-12
• NDTV Convergence - Revenues for the year are up by 48% compared to
last year resulting in a net profit for the year. The growth has been
spectacular hitting a record 286 mn page views in March 2011. Convergence is
expected to grow rapidly with 3G and Broadband wireless coming in.
• NDTV Worldwide - Revenues for the year are up by 34% as compared to
the last year. The expansion of this subsidiary is expected to be rapid in
2011/2012 both in
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.44.72 |
|
|
1 |
Rs.72.93 |
|
Euro |
1 |
Rs.64.72 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
|
29 |
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.