BUSINESS INFORMATION REPORT
1. Summary Information
|
|
|
Country |
|
|
Company Name |
DISH TV INDIA LIMITED |
Principal Name 1 |
MR. SUBHASH CHANDRA |
|
Status |
MODERATE |
Principal Name 2 |
MR. JAWAHAR LAL GOEL |
|
|
|
Registration # |
55-101836 |
|
Street Address |
ESSEL HOUSE, B – 10, |
||
|
Established Date |
10.08.1988 |
SIC Code |
-- |
|
Telephone# |
91-11-66088432 |
Business Style 1 |
PROVIDING |
|
Fax # |
91-11-27184863 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
DIRECT TO HOME (DTH) SATELLITE TELEVISION SERVICE |
|
|
# of employees |
ABOUT 100 |
Product Name 2 |
TELEPORT SERVICE |
|
Paid up capital |
Rs.1,062,070,000/- |
Product Name 3 |
-- |
|
Shareholders |
PROMOTER AND PROMOTER GROUP-72.79% PUBLIC SHAREHOLDING-27.21% |
Banking |
ICICI BANK LIMITED |
|
Public Limited Corp. |
YES |
Business Period |
22 YEARS |
|
IPO |
YES |
International Ins. |
-- |
|
Public |
YES |
Rating |
B (34) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
GROUP
COMPANY |
-- |
CHURU TRADING
COMPANY PRIVATE LIMITED |
-- |
|
Note |
-- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
13,806,176,000
|
Current Liabilities |
15,503,947,000
|
|
Inventories |
27,799,000
|
Long-term Liabilities |
9,177,983,000 |
|
Fixed Assets |
10,150,535,000 |
Other Liabilities |
56,077,000
|
|
Deferred Assets |
0,000 |
Total Liabilities |
24,738,007,000 |
|
Invest& other Assets |
4,756,246,000 |
Retained Earnings |
15,282,338,000 |
|
|
|
Net Worth |
4,002,749,000 |
|
Total Assets |
28,740,756,000 |
Total Liab. & Equity |
28,740,756,000 |
|
Total Assets (Previous Year) |
20,953,618,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
10,847,944,000 |
Net Profit |
(2,621,325,000) |
|
Sales(Previous yr) |
7,376,945,000 |
Net Profit(Prev.yr) |
(4,762,774,000) |
MIRA
INFORM REPORT
|
Report Date : |
25.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
DISH TV INDIA LIMITED (w.e.f. 07.03.2007) |
|
|
|
|
Formerly Known
As : |
ASC ENTERPRISES LIMITED |
|
|
|
|
Registered
Office : |
Essel House, B –
10, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
10.08.1988 |
|
|
|
|
Com. Reg. No.: |
55-101836 |
|
|
|
|
CIN No.: [Company Identification
No.] |
L51909DL1988PLC101836 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMA18375A |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Subject is engaged in business of providing Direct to Home (DTH)
Satellite Television Service and Teleport Service. |
RATING & COMMENTS
|
MIRA’s Rating : |
B (34) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 16011000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part of Zee-Telefilms Group of Mr. Subhash Chandra, It is
an established company having moderate track. There appears huge accumulated
losses recorded by the company. However, trade relations are reported as
fair. Business is active. Payments are reported to be slow but correct. In view of well experienced and resourceful directors, the company can
be considered normal for business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered
Office : |
Essel House, B –
10, |
|
Tel. No.: |
91-11-66088432/ 30/ 27101145/ 54 |
|
Fax No.: |
91-11-27184863/ 27147627/ 27106128 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
FC 19 Sector 16A, |
|
Tel No.: |
91-120-2599391-95/ 2511064/ 2599555 |
|
Fax No.: |
91-120-4357078 |
|
Website : |
|
|
|
|
|
Branch Office : |
207, Paradigm ‘B’ Mindspace, |
|
Tel. No. : |
91-22-55040280 / 81 /82 |
|
Fax No. : |
91-22-55040285 |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Subhash Chandra |
|
Designation : |
Chairman |
|
Date of
Birth/Age : |
30.11.1950 |
|
Date of
Appointment : |
09.08.1995 |
|
|
|
|
Name : |
Mr. Jawahar Lal Goel |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. B.D. Narang |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Arun Duggal |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Dr. Pritam Singh |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Ashok Kurian |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Mr. Eric Zinterhoter |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Lakshmi Chand |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Mintoo Bhandari |
|
Designation : |
Non Executive Nominee Director |
|
|
|
|
Name : |
Mr. Sanjay H. Patel |
|
Designation : |
Alternate Director to Mintoo Bhandari |
KEY EXECUTIVES
|
Name : |
Mr. Ranjit Singh |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
649,491,070 |
68.59 |
|
|
3,600,650 |
0.38 |
|
|
3,600,650 |
0.38 |
|
|
653,091,720 |
68.97 |
|
|
|
|
|
|
500,000 |
0.05 |
|
|
35,632,125 |
3.76 |
|
|
36,132,125 |
3.82 |
|
Total
shareholding of Promoter and Promoter Group (A) |
689,223,845 |
72.79 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
54,019,187 |
5.70 |
|
|
51,095 |
0.01 |
|
|
11,601,276 |
1.23 |
|
|
88,152,157 |
9.31 |
|
|
153,823,715 |
16.25 |
|
|
|
|
|
|
51,171,238 |
5.40 |
|
|
|
|
|
|
38,436,997 |
4.06 |
|
|
11,823,789 |
1.25 |
|
|
2,419,111 |
0.26 |
|
|
2,353,097 |
0.25 |
|
|
8,711 |
- |
|
|
33,851 |
- |
|
|
1,075 |
- |
|
|
22,377 |
- |
|
|
103,851,135 |
10.97 |
|
Total Public
shareholding (B) |
257,674,850 |
27.21 |
|
Total (A)+(B) |
946,898,695 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
117,035,000 |
- |
|
|
117,035,000 |
- |
|
Total
(A)+(B)+(C) |
1,063,933,695 |
- |
(1) Indian
Bodies Corporate
Directors/Promoters & their Relatives
& FriendsBUSINESS DETAILS
|
Line of Business
: |
Subject is engaged in business of providing Direct to Home (DTH)
Satellite Television Service and Teleport Service. |
|
|
|
|
Brand Names : |
AGRANI and DISH TV |
GENERAL INFORMATION
|
No. of Employees
: |
About 100 (Approximately) |
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Bankers : |
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Facilities : |
Notes: 1.
Term Loan from banks Rs.2590.700 millions (Rs.2590.700
millions) is under syndicate debt facility and secured by all movable assets,
uncalled capital, intellectual property, goodwill and all investments, all
rights, title, interests of all insurance contracts (both present and
future), all contracts, government approvals and licenses relating to direct
to home services, all amounts in the accounts or other receivables liable to
be credited to the accounts in the course of the business, all amounts and
receivables from whomsoever person, both present and future in relation to
direct to home service business, floating charge on other assets. Further the
Company is required to maintain minimum reserve amount with the banks which
is guaranteed by a related party. 2.
Term Loan from a bank Rs.1000.000 millions (NIL)
is secured by subservient hypothecation charge on whole of current assets,
movable and immovable fixed assets of the company (present and future) and
unconditional and irrevocable corporate guarantee by a related party. (Amount
repayable within a year Rs.375.000 millions). 3.
Cash Credit of Rs. Nil (Rs.74.605 millions) is
secured by first pari passu charge by way of hypothecation on moveable fixed
assets of the Company and pledge of shares owned by related parties. 4.
Vehicle loans are secured against hypothecation
of vehicles, (ROC charge not registered) (Amount repayable within a year
Rs.1.457 millions).
Notes: 1.
Buyer’s credit from a bank Rs.1348.648 millions
(Rs.1475.854 millions) is guaranteed by a related party (Amount repayable within a
year Rs.546.718 millions). 2.
Buyer’s credit from a bank of Rs.1169.047 millions
(Rs.687.170 millions) is on undertaking provided by related party and the
Company has to maintain minimum reserve equivalent to three months payments
of principal and interest on outstanding amount, which is guaranteed by a
related party. 3.
Term Loan from a bank Rs.3000.000 millions
(Rs.300.000 millions) is guaranteed by two directors and also collaterally
secured by immovable property and corporate guarantee provided by related
parties. The Company to maintain debt service reserve equivalent to three
months installment and interest (Amount repayable within a year Rs.900.000
millions). Subsequent to balance sheet date, the loan is secured by second
pari passu charge on entire fixed assets of the company. 4.
Short Term Loan from bank Rs. Nil (Rs.1000.000 millions)
is guaranteed by a related party. |
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Banking
Relations : |
-- |
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Auditors : |
|
|||||||||||||||||||||||||||||||||||||||
|
Name : |
M.G.B. and Company Chartered Accountants |
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|
Address : |
Noida, |
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Group
Companies : |
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Related Parties
: |
·
Agrani
Convergence Limited. (Extent of holding 51%) |
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|
|
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|
Other Related
Parties : |
|
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1,350,000,000 |
Equity Shares |
Re.1/- each |
Rs.1350.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1,063,419,475 |
Equity Shares |
Re.1/- each |
Rs.1063.419 Millions |
|
|
Less: Calls in Arrear |
|
Rs.1.349 millions |
|
|
Total |
|
Rs.1062.070
millions |
Note:
i) Of
1,063,419,475 Equity Shares as at March 31, 2010:
a) 249,300,890
Equity Shares of Re. 1 each fully paid up were allotted for consideration other
than cash pursuant to the Scheme of Arrangement made effective on April 01,
2006.
b) 12,080 Equity
Shares were issued during the year to employees under Employee Stock Option
Plan i.e. ESOP
2007.
c) 117,035,000
(NIL) equity shares of Re 1 each fully paid up have been issued during the
year, underlying 117,035 nos. of Global Depository Receipts (GDR). Each GDR
represents 1,000 Equity Shares of Re 1 each.
ii) Of 946,372,395
Equity Shares as at March 31, 2009:
Represent
428,222,803 Equity Shares of Re. 1 each fully paid up and 518,149,592 Equity
Shares of Re. 1 each partly paid up of Re 0.50 per Equity Share.
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 |
1062.070 |
687.298 |
428.223 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
15282.338 |
2792.321 |
0.000 |
|
|
4] (Accumulated Losses) |
(12341.659) |
(9720.334) |
(4955.005) |
|
|
NETWORTH |
4002.749 |
(6240.715) |
(4526.782) |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3627.771 |
2696.205 |
683.868 |
|
|
2] Unsecured Loans |
5550.212 |
8615.161 |
4582.383 |
|
|
TOTAL BORROWING |
9177.983 |
11311.366 |
5266.251 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
13180.732 |
5070.651 |
739.469 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
10150.535 |
8806.430 |
6316.256 |
|
|
Capital work-in-progress |
2250.680 |
2380.910 |
1379.766 |
|
|
|
|
|
|
|
|
INVESTMENT |
2505.566 |
944.510 |
944.510 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
27.799
|
30.933
|
47.122
|
|
|
Sundry Debtors |
338.473
|
506.572
|
384.370
|
|
|
Cash & Bank Balances |
5422.248
|
540.370
|
199.423
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
8045.455
|
7743.893
|
2844.150
|
|
Total
Current Assets |
13833.975
|
8821.768
|
3475.065
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
5826.796
|
7296.766
|
|
|
|
Other Current Liabilities |
9677.151
|
8546.664
|
|
|
|
Provisions |
56.077
|
39.537
|
35.341
|
|
Total
Current Liabilities |
15560.024
|
15882.967
|
11376.128
|
|
|
Net Current Assets |
(1726.049)
|
(7061.199)
|
(7901.063)
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
13180.732 |
5070.651 |
739.469 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales and Services |
10847.944 |
7376.945 |
4127.438 |
|
|
|
Other Income |
53.128 |
12.721 |
29.731 |
|
|
|
TOTAL (A) |
10901.072 |
7389.666 |
4157.169 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Traded Goods |
23.083 |
143.021 |
|
|
|
|
Operating Expenses |
7007.061 |
5263.396 |
|
|
|
|
Personnel Cost |
398.540 |
393.832 |
|
|
|
|
Administration and Other Expenses |
454.240 |
417.849 |
|
|
|
|
Selling and Distribution Expenses |
2018.273 |
2509.177 |
|
|
|
|
TOTAL (B) |
9901.197 |
8727.275 |
6279.309 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
999.875 |
(1337.609) |
(2122.140) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
583.435 |
1263.818 |
513.540 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
416.440 |
(2601.427) |
(2635.680) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
3037.946 |
2154.075 |
1490.473 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(2621.506) |
(4755.502) |
(4126.153) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(0.181) |
7.272 |
5.892 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(2621.325) |
(4762.774) |
(4132.045) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(2621.325) |
(4762.774) |
(4132.045) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
NA |
NA |
41.304 |
|
|
|
|
|
|
|
|
|
|
IMPORT VALUE |
NA |
NA |
2062.021 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(3.19) |
(10.02) |
NA |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
3043.020 |
3261.460 |
3731.600 |
|
Total Expenditure |
2721.150 |
2763.460 |
3065.000 |
|
PBIDT (Excl OI) |
321.870 |
498.000 |
666.600 |
|
Other Income |
68.580 |
246.230 |
180.500 |
|
Operating Profit |
390.450 |
744.230 |
847.100 |
|
Interest |
133.470 |
352.660 |
388.100 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
256.980 |
391.570 |
459.000 |
|
Depreciation |
888.760 |
843.240 |
901.800 |
|
Profit Before Tax |
(631.780) |
(451.680) |
(442.800) |
|
Tax |
0.020 |
0.020 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(631.800) |
(451.690) |
(442.800) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(631.800) |
(451.690) |
(442.800) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(24.05) |
(64.45)
|
(99.40) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(24.17) |
(64.46)
|
(99.97) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(10.93) |
(26.98)
|
(42.14) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.65) |
0.76
|
0.91 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
6.18 |
(4.36)
|
(3.68) |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.89 |
0.56
|
0.33 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Subject is an Essel Group venture. Essel Group has a vast range
of national and global business interests that include media programming,
broadcasting and distribution, speciality packaging and entertainment. The
Company was incorporated during August of the year 1988 as Navpad Texturisers
Private Limited. The businesses have close synergies in the areas of content,
distribution and infrastructure. Company is India's first direct to home
entertainment service that has digitalized Indian entertainment to bring to
home the best in television viewing through the latest in digital technology.
Company takes television viewing to the next level as it supports various
futuristic features like Electronic Programme Guide, Parental Lock, Capacity up
to 400 channels, Games, Interactive TV, Movie on Demand etc also brings an exclusive
National and International channels for the first time in India.
During December of the year 1995, the company had changed its name as ASC
Enterprises Limited. In April of the year 2006, the company's
BACKGROUND
Subject is having
registered office in the state of
COMPOSITE SCHEME
OF AMALGAMATION AND ARRANGEMENT (THE SCHEME)
Agrani Satellite
Services Limited (ASSL), wholly owned subsidiary of Dish TV, was formed to own,
establish and operate Ku band satellite system and to market and lease their
bandwidth capacities. However, due to unfavorable market conditions, the
satellite business is discontinued. Integrated Subscribers Management Services
Limited (ISMSL), another wholly owned subsidiary of Dish TV, is in the business
of providing services on commercial basis pertaining to subscriber’s management
including raising and collection of bills, collection and maintenance of
subscriber’s information, preparation of required report and call centre
activities. In order to simplify the group structure and improve cost
efficiency; the board of directors has approved the Scheme, wherein the Non-DTH
related business (including equity shares in ASSL and Agrani Convergence
Limited) of the Company is transferred to ISMSL followed by the merger of ASSL
with ISMSL
In terms of
Composite Scheme of Amalgamation and Arrangement between the Company, Agrani
Satellite Services Limited ('ASSL') Integrated Subscriber Management Services
Limited ('ISMSL') and their respective shareholders and creditors ('Scheme'),
it is proposed to demerge Non-DTH business of the Company into ISMSL, followed
by merger of ASSL with ISMSL on appointed date i.e. March 31, 2010. In
consideration of transfer of Non-DTH related business, ISMSL will issue and
allot 1,00,000 equity shares of face value of Rs. 10 each to Dish TV.
The Scheme of
Arrangement is subject to requisite consent, approval of the shareholders and
creditors of the companies, the Hon’ble High Court of Judicature at
Upon The Scheme
becoming effective, the Company shall transfer the whole of the undertaking
with assets and liabilities as on March 31, 2010 of the Non-DTH Business to
ISMSL.
BUSINESS OVERVIEW
The year gone by
witnessed stiff competition and aggressive marketing initiatives from 6 players
in the market. Despite that dishtv continues to be sitting strong in the No 1
position. This has been possible because of the brand’s foresight in
maintaining a leadership stance through a series of initiatives involving
technology, customer service and acquisition drive. Their main focus has been
on the expansion of sales and distribution outlets to Tier II and Tier III
cities for better penetration and reach of their products, this called for the
service network to be widened beyond the boundaries of top cities. The service
franchisee / service outlets and service partners were strengthened, not only
in numbers but also in terms of infrastructure to be at the customers beck and
call. The DTH category grew by more than 20% on year-on-year basis and the
numbers came from across the country. To facilitate recharge payments various
new modes of payment were introduced, the latest being the ‘Home Pick’ service
where the subscriber just needs to send a sms and dishtv collects the recharge
payment from the subscribers doorstep. The response to this service has been
quite encouraging and their continuous effort would be to simplify subscribers’
‘Dish TV’ experience by delighting them through new methods of payment.
The Company
launched a major repositioning campaign to move into the emotional space. The
rationale of dishtv being a reason for the family to bond together was
beautifully captured in the new positioning “Ghar Aayi Zindagi”. The campaign
was aimed at making the existing subscribers the goodwill ambassadors. The new
energized space of the brand was complemented with a new and progressive logo.
Various recharge
schemes incentivising the long term payment by the subscribers was introduced
and the result was encouraging. This has given rise to decrease in churn and
intermediate deactivation. Some of the successful schemes were ZR – ZR, Pay
Term Offer and Extra Khushi Offer.
The content
offering has been designed keeping the customers needs in mind. They are made
flexible for customers to pick their own channels as per their likings and
choices. This has provided a competitive edge to dishtv in terms of price,
number of channels and composition of packaging tiers which is a huge advantage
to subscribers spread all across the country. Some game changing acquisition
offers were launched which included ‘Diwali Bonanza’ and ‘Box Free offer’ which
resulted in high customer acquisition because it stood out, leading to greater
acceptability of the product in the market.
During the year, dishtv
added another feather in its cap when it was presented with the “Special Award”
for its Interactive Service awarded at the AFDESI International iTV Awards
ceremony in
With the entry of
‘Hi-definition’, Dishtv stood ahead of the curve and launched DISH TRU HD. The
launch of Dish TRU HD was done in partnership with Zee (leader in GEC) for the
HD content of Zee Cinema and ESPN for the FIFA World Cup 2010 in HD format
which was the first time Indian subscribers were privy to. Customers watched
and enjoyed a wide array of genres with crystal clear picture quality and
stereophonic sound. This heralded a new paradigm in the DTH industry and dishtv
successfully managed to provide high quality entertainment to it’s subscribers.
During the fourth
quarter dishtv achieved EBIDTA positive for the first time and the same is
being continued thereafter. The revenue grew by more than 40% in line with the
expectation.
However, the
desired impact of the increased revenue did not reflect in ARPU due to higher
number of activations and offering of free / subsidized content for the initial
period of 3-6 months. The Focus of the Company continued towards reduction of
operational expenses, establishment of robust service network, strengthening
brand equity, revamping existing packages, creating unique packages,
maintaining market leadership, strengthen it’s financials and providing
consumer delight.
Dish TV was
granted the Head-end-in-the-Sky (HITS) License. The commercial launch of HITS
services was done in the early part of 2009. However, in view of the prevailing
regulatory position, the HITS License has been surrendered and the HITS
operations have been discontinued.
SHARE CAPITAL
During the year,
the Company issued and allotted 12,080 fully paid equity shares upon exercise
of Stock Options under ESOP Scheme – 2007 of the Company on December 10, 2009.
During the year, the Company issued and allotted 117,035,000 fully paid equity
shares of Re.1 each underlying Global Depository Receipts (“GDRs”) on November
30, 2009.
The Company had
come up with Rights Issue of 51,81,49,592 equity shares of Re. 1/- each, issued
at Rs. 22/- per share (including premium of Rs. 21/- per share), payable in
three installments i.e. Rs. 6/- (including Re. 0.50/- towards capital) on
application, Rs. 8/- (including Re. 0.25/- towards capital) on first call and
balance Rs. 8/- (including Re. 0.25/- towards capital) on second call. The
issue opened on December 12, 2008 and closed on January 9, 2009. The partly
paid shares were allotted on January 19, 2009. The Company made the first call
on June 18, 2009 and Second call on January 22, 2010. Upon receipt of valid
first and second call money, the respective shares are converted from Rs.0.50
paid up to Rs.0.75 paid up and from Rs. 0.75 paid up to Rs. 1 paid up
respectively.
Pursuant to the
issue of further shares under ESOP and GDR offering and subsequent to
conversion of partly paid shares, the paid up capital of the Company during the
year has increased from Rs.687.298 millions comprising of 428,222,803 equity
shares of Re. 1 each, fully paid up and 518,149,592 equity shares of Re. 1
each, paid up Re.0.50 per share to Rs.1062.070 millions comprising of
1059,006,947 equity shares of Re.1 each, fully paid up, 3,429,124 equity shares
of Re.1 each, paid up Re.0.75 per share and 983,404 equity shares of Re.1 each,
paid up Re.0.50 per share.
The fully paid up
equity shares issued pursuant to ESOP, against underlying GDRs and upon
conversion from partly to fully paid up equity shares pursuant to Rights issue,
are listed at the National Stock Exchange of India Limited (NSE) and the Bombay
Stock Exchange Limited (BSE).
RIGHT ISSUE OF
SHARES AND UTILISATION OF PROCEEDS THEREOF
Out of the total
Right Issue size of Rs.11399.291 millions, the Company has received a sum of
Rs.11356.123 millions towards the Share application and call money from the
aforesaid Issue of Shares on Rights basis.
As per the
disclosure requirements, the utilization of Rights Issue proceeds are placed
before the Audit Committee on quarterly basis. Further, the Company also
provides the details of the utilization of Rights Issue proceeds to the
Monitoring Agency and inform Stock Exchanges, in case of any deviation from the
stated purpose.
In view of the DTH
market becoming very competitive and the business dynamics being required to be
revisited and made market friendly to achieve the desired level of market
share, improved service quality and customer loyalty.
The Monitoring
Report for periods July - December 2009 and January - June 2010, containing the
deviation from the original proposed expenditure plan and in accordance with
the revised plan was recorded by the Audit Committee and the Board at their
meetings and necessary compliance in this regard have been carried out.
DELISTING OF
EQUITY SHARES FROM
The Equity shares
of the Company are currently listed on the Bombay Stock Exchange Limited (BSE)
and National Stock Exchange of India Limited (NSE). During the year, the equity
shares of the Company were also listed on the Calcutta Stock Exchange
Association Limited (CSE). Since the trading volume of Company’s share on CSE
was insignificant and the Company’s securities are available for trading at BSE
and NSE, who have extensive network of nation wide trading terminals, the Board
had proposed for delisting of Company’s Equity Shares from the Calcutta Stock
Exchange Association Limited. The delisting of equity shares was also approved
by the members at the previous Annual General Meeting held on August 28, 2009.
Upon the approval
of the Board and the members of the Company for delisting of equity shares of
the Company from CSE, an application towards the same was made to CSE and the
approval for delisting of equity shares of the Company from CSE was obtained
from CSE with effect from November 14, 2009 vide CSE letter dated December 7,
2009.
GLOBAL DEPOSITORY
RECEIPT
Pursuant to the
requisite approvals and in accordance with applicable regulations including the
Foreign Currency
Convertible Bonds
and Ordinary Shares (Through Depository Receipts Mechanism) Scheme, 1993, as
amended, the Global Depository Receipt (GDR) Offer of the Company for 117,035
GDRs opened for subscription on November 23, 2009 at a price of US $ 854.50 per
GDR, each GDR representing 1000 fully paid equity shares of the Company.
The pricing of the
GDR as per the pricing formula prescribed under Clause 5 (4) (D) of the Foreign
Currency Convertible Bonds and Ordinary Shares (Through Depository Mechanism)
Scheme, 1993, as amended, was Rs. 39.80 per equity share and the relevant date
for this purpose was November 23, 2009.
Upon opening, the
GDR issue was fully subscribed by Apollo
CREDIT RATING
The Company has
obtained credit rating of AA (SO) for its long term Banking facilities on the
basis of Company’s performance from Credit Analysis and Research Limited
(CARE). CARE rating, ‘AA (SO)’ indicates adequate safety for timely servicing
of debt obligations.
MANAGEMENT
DISCUSSION AND ANALYSIS
Dish TV – An
Overview
The Indian DTH
industry has seen phenomenal growth, currently encompassing close to 26 Million
subscribers. In a very short span of time of 5 years, the DTH sector has
already acquired 25% of the cable and satellite household and is expected to
reach 50% in the next 3 years. The key drivers towards the growth story are
aggressive marketing efforts by the DTH operators, affordable and attractive
entry price, quality of services, wide range of sports events, increase in
value added services, variety of channel options to the subscribers and an
overall euphoria towards acquiring better products.
The intensity of
competition has led to availability of wide choice for the masses. This is also
an outcome of heightened awareness through media spends, by the category
players, across all media, through out the country. The majority of new
customers continue to hail from the hinterland and this is amply supported by
the rural consumption story led by high disposable income due to rising growth
in GDP.
The Indian economy
has emerged stronger and is more resilient after the recent global melt-down,
which is reflected in the growth of consumption pattern across all economic
strata. Despite the recent rise in inflation and interest rate, the growth in
the items of mass consumption has not been deterred.
With 8.4 Million
Subscribers, Dish TV retains one third of the entire DTH market despite stiff
competition from other 5 DTH players.
KEY PERFORMANCE
INDICATORS
The Company is subsidizing
Consumer Premises Equipment (CPE) in order to gain the market share and achieve
the minimum targeted number of subscribers. Continued effort on operational
efficiencies and cost containment will drive the future numbers. They have
already achieved break even at EBITA level as a result of their focused
attention on maximizing the revenue through a variety of product mix and
keeping an eye on expenses to avoid wastefulness and competitive spending.
During the year
the key highlights of operational performance are as under:
·
Gross
subscriber base stood at 8.3 Million on September 30, 2010
·
Operating
Revenue for FY 10 stood at Rs. 10.9 Billion
·
EBITDA
for FY 10 stood at Rs. 915 Million
·
Total
Number of Channels and Services – 263, being the highest in the category
·
ARPU for
FY 10 stood at Rs. 138
·
Expansion
in Dish Care Network, Dish Shoppe,
UN-AUDITED STANDALONE
FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS PERIOD ENDED 31 DECEMBER 2010
(Rs.
in millions)
|
Particulars |
Quarter-ended |
Nine months
period-ended |
|
31.12.2010 (Un-Audited) |
31.12.2010 (Un-Audited) |
|
|
1. i) Income
from sales and services |
3721.900 |
10008.900 |
|
ii) Other
operating income |
9.700 |
27.100 |
|
Total income |
3731.600 |
10036.000 |
|
2. Expenditure |
|
|
|
a) (Increase)/
decrease in stock in trade |
(14.700) |
(17.000) |
|
b) Purchase of
traded goods |
18.700 |
32.300 |
|
c) Employees
cost |
134.300 |
387.000 |
|
d) Depreciation
/ amortisation |
901.800 |
2633.800 |
|
e) Programming/
content and other costs |
1426.400 |
3878.100 |
|
f) Other
operating costs |
670.600 |
1825.600 |
|
g) Selling and
distribution expenses |
|
|
|
i) Commission |
408.300 |
1114.100 |
|
ii) Other
selling and distribution expenses |
273.800 |
896.100 |
|
h) Other
expenditure |
147.600 |
433.300 |
|
Total
expenditure |
3966.800 |
11183.300 |
|
3. Profit /
(loss) from operations before other income, interest, exceptional items and
tax (1-2) |
(235.200) |
(1147.300) |
|
4. Other income |
17.400 |
99.900 |
|
5. Profit / (loss)
before interest, exceptional items and tax (3+4) |
(217.800) |
(1047.400) |
|
6. Interest and
finance charges (net) (note no. 6) |
225.000 |
478.900 |
|
7. Profit /
(loss) after interest but before exceptional items and tax (5-6) |
(442.800) |
(1526.300) |
|
8. Exceptional
items |
-- |
-- |
|
9. Profit /
(loss) from ordinary activities before tax (7-8) |
(442.800) |
(1526.300) |
|
10. Tax expense |
-- |
-- |
|
11. Net profit /
(loss) from ordinary activities after tax (9-10) |
(442.800) |
(1526.300) |
|
12.
Extraordinary item (net of tax expense Rs. nil) |
-- |
-- |
|
13. Net profit /
(loss) for the period (11-12) |
(442.800) |
(1526.300) |
|
Paid-up equity
share capital (Face value Re. 1) (#) |
1062.900 |
1062.900 |
|
Reserves (excluding
revaluation reserves, if any) |
-- |
-- |
|
Basic and
diluted earning per share (not annualised) (In Rs.) |
(0.42) |
(1.44) |
|
Public
shareholding |
|
|
|
Number of equity
shares of Re.1 each |
374709850 |
374709850 |
|
Percentage of shareholding |
|
|
|
- Calculated on
total number of issued shares |
35.22 |
35.22 |
|
- Calculated on
the paid-up capital |
35.16 |
35.16 |
|
Promoters and
promoter group shareholding (calculated on total number of issued shares) |
|
|
|
a) Pledged / encumbered |
|
|
|
i) Number of
shares |
125830623 |
374709850 |
|
ii) Percentage
of shares (% of the total shareholding of promoters and promoter group) |
18.26 |
35.22 |
|
iii) Percentage
of shares (% of the total share capital of the company) |
11.83 |
35.16 |
|
b)
Non-encumbered |
|
|
|
i) Number of
shares |
563393222 |
563393222 |
|
ii) Percentage
of shares (% of the total shareholding of promoters and promoter group) |
81.74 |
81.74 |
|
iii) Percentage of shares (% of the total share capital of the company)
|
52.95 |
52.95 |
# Comprises of
fully paid up equity shares; 2,071,662 (517,020,749 shares as on 31.12.2009 and
3,429,124 as on 31.03.2010) partly paid up equity shares of Re. 0.75 each; and 968,055
(1,128,843 shares as on 31.12.2009 and 983,404 as on 31.03.2010) partly paid up
equity shares of Re. 0.50 each.
Notes:
1. The above
un-audited standalone financial results for the quarter and nine months
period-ended 31 December 2010 have been reviewed by the Audit Committee and
were approved by the Board of Directors in their meeting held on 21 January
2011.
2. The Statutory
Auditors of the Company have carried out a Limited Review of the standalone
financial results for the quarter and nine months period-ended 31 December
2010.
3. The Board of
Directors of the Company have approved the Composite Scheme of Arrangement and
Amalgamation between the Company, Agrani Satellite Services Limited (‘ASSL’),
Integrated Subscriber Management Services Limited (‘ISMSL’) and their
respective shareholders and creditors on 11 June 2010. While the shareholders
and creditors of the Company have approved the Scheme on 11 November 2010, it
is subject to approval of Delhi High Court. The Scheme envisages transfer of the
non-DTH related business of the Company, as specified in the Scheme, into ISMSL
for an agreed consideration and merger of ASSL into ISMSL with the appointed
date of 31 March 2010. The effect of the scheme, once approved, would be dealt
with through General Reserves in terms of the scheme. Impairment/non
recoverability of assets would be dealt with once the Scheme becomes effective.
4. The life of the
Consumer Premise Equipment (CPE) for the purposes of depreciation has been
estimated by the management as five years. However, in certain cases, the
one-time advance contribution towards the CPE in the form of rental is
recognised over a period of three years. The Company is in the process of
streamlining the above practices.
5. The Audit
Committee and Board of Directors noted the utilisation of the proceeds of
Rights Issue for the six months period-ended 31 December 2010, which is in line
with revised utilisation schedule approved by the Board of Directors. The
unutilised amount as on 31 December 2010 is Rs.2150.100 millions.
6. Interest and
finance charges for the quarter and nine months period-ended 31 December 2010
are net of interest income of Rs.163.100 millions and Rs.592.600 millions
respectively.
7. The Company is in
the business of providing Direct to Home (DTH) and Teleport services primarily
in
8. There were no
investor’s complaints pending either at the beginning or end of the quarter.
During the quarter-ended 31 December 2010, 4 complaints were received and the
same were disposed off.
9. The company has
not recognised deferred tax assets in view of substantial tax losses and no
virtual certainty supported by convincing evidence that sufficient future
taxable income will be available against which such deferred tax assets can be
realised.
10. The previous
period/ year’s figures have been regrouped / reclassified, wherever necessary
to make them comparable.
|
Information on Subscriber Base and ARPU |
Number in Lakhs |
|
|
Particulars |
As on 31.12.2010 |
As on 30.09.2010 |
|
Gross Subscriber
Base |
94.36 |
83.00 |
|
Net Subscriber
Base |
77.27 |
68.00 |
|
|
For the Quarter
Ended |
|
|
|
31.12.2010 |
30.09.2010 |
|
Subscribers
Added |
11.36 |
7.70 |
|
ARPU (Subscription Revenue) (Rs) |
142 |
139 |
FIXED
ASSETS:
·
Goodwill
·
License Fees
·
Software
·
Plant and Machinery
·
Consumer Premises Equipments
·
Computers
·
Office Equipments
·
Furniture and Fixtures
·
Vehicles
·
Leasehold Improvements
WEBSITE DETAILS:
Company Profile:
Subject is a division of Zee Network Enterprise (Essel Group
Venture). EGV has national and global presence with business interests in media
programming, broadcasting and distribution, speciality packaging and
entertainment. Zee Network incorporated subject to modernize TV viewing.
Subject is
Subject imparts DVD quality picture and stereophonic sound
effects to the customers. It promises to change the experience of TV viewing
with its uninterrupted transmission service. The endeavour enters next level of
entertainment with futuristic features, such as EPG (Electronic Programme
Guide), parental lock, games, 400 channels, interactive TV and movie on demand.
Subject also brings exclusive national and international channels for the first
time in
Subject is
a division of Zee Network Enterprise (Essel Group Venture). EGV has national
and global presence with business interests in media programming, broadcasting
and distribution, speciality packaging and entertainment. Zee Network
incorporated subject to modernize TV viewing. Subject is
People Speak:
R. Iniyan
Operations
It has been a wonderful experience being a part of the Dish TV family. The Dish
family members participate actively in creating a culture of innovation that
encourages fun and stimulates creativity. Work gets done in an atmosphere that
fosters joy, productivity and integrity. This is one company which really puts
the employee first in their agenda. Team members feel really valued and
recognized here.
It has been exciting to be a part of the company during its successful
transition from a monopoly operator into a fast thinking and fast acting
competitive entity.
Deputy
Company Secretary and Investor Relation Officer
I joined Dish TV in 2006 and am proud to be associated with
Across the Essel Group, the management actively plans for developing employee
skills and knowledge. During the last couple of years lot of efforts have been
made towards employees’ welfare and performance is reviewed, appreciated and
adequately rewarded. The management has been able to create a sense of
camaraderie among the entire Dish TV force and being in Dish TV feels like
being in my own family.
Sales
Support
I am grateful to my collegues, supervisors and Dish family as a whole, who have
helped me to evolve as a better individual. Here, I have learnt how business
can excel even with all ethics and values in place to make organization the
best in its endeavor. I wish to provide my services to Dish to retain its no.1
tag in DTH business always.
Finance
and Accounts
Dish TV is like an extended family for me. The greatest reward that my company
has given me is freedom to learn and sense of belonging which has resulted in a
determined effort to give my best and take ownership of every task in hand.
Senior management is highly approachable, open interaction is encouraged and
outstanding performance is rewarded. I feel proud to be associated with Dish
TV.
Operations
Joined in January 2005 as Team Leader- Quality, came from operations exposure.
It’s been a great working experience throughout. Company’s support has enhanced
my skills to a great extent. I have been given six sigma training and after
completing it successfully, I am also a certified internal auditor (ISO
9000:2000). I am grateful to constant trainings and reviews that has enriched
my experience and appreciate the management’s warm approach.
After a year and a half, I have been promoted as a Shift Manager. Unlike other
companies, Dish TV possesses a good working culture where you have the liberty
to approach the top management. It is a privilege that the company always
identifies the talent and gives you the platform to prove self.
Corporate
Sales and Key Accounts
Dish TV has provided me opportunities with a high degree of cross-functional
content, thereby adding immense value and rich content to my work profile.
Exposure to different functions has broadened my role from a traditional sales
manager to a general manager, enabling me to drive my vertical with complete
responsibility and accountability.
The company has helped me develop/hone skill sets to take on jobs with greater
responsibility and I have benefited from company’s policy of Job Rotation,
being assigned different roles across functions, over a period of time.
Information
Technology
Joined Essel Group in 2000, and found out that the company was having multiple
projects to work on, which was very exciting. Within a year I was chosen
for the DTH project team i.e. from 2002 onwards and became the core team
member of Dish TV. For efficient and hardworking person this
organization is very good. As different and varied projects
are going on and one get the chance to work on them. Here also
management gives full freedom to work, and give new ideas. As
company takes very minimum consultancy and more dependent on in house resource
with that employees get motivation as well as experience in different field.
DISHTV EDGE
Going the DTH way has a lot of benefits. Automatically
upgraded to a host of world class features that makes television viewing a
pleasurable experience. Have a look at some of the key add on benefits that Company brings to the home.
Digital Picture Quality
The exceptional digital and direct-to-home transmission
ensures watch all the favourite programmes in true DVD quality.
Sterephonic Sound
The Direct-to-Home satellite transmission treats the ears to
a true theatre experience by providing awesome stereophonic sound.
Geographic Mobility
No matter which part of the country are in or moving to, Subject with its all
Uninterrupted Viewing
Company at the home, as long as the equipment is connected
to a power source can enjoy uninterrupted transmission of the favourite
programmes.
Capacity up to 400 Channels
Subject can
offer up to 400 entertaining channels. And that's not all, every month more channels
will be added to provide complete entertainment to the family.
THE SATELLITE LINK
Dishtv uses NSS-6 to broadcast its
programmes. NSS-6 was launched on 17th December, 2002 by European-based
satellite provider, NewSkies (one of the only four fixed satellite
communications companies with truly global satellite coverage)
Dishtv -
Salient Features of NSS-6
·
Versatile Ku-band and Ka-beams can be
easily cross-strapped or interconnected, offering enhanced connectivity
throughout Asia with complete access to Europe and the
·
Higher transmission power enables
customers to use smaller antennas (75-90cm) or obtain higher throughput with
existing antennas.
·
NSS 6 is also equipped with extra
on-board redundancy for critical units, minimizing risk of single-point failure
throughout the projected 14-year operational life of the satellite.
·
Ideally suited for DTH and emerging
broadband applications
Transponder and Capacity
Satellite TV and radio channels are transmitted back to
earth via a transponder on a satellite. NSS-6 dishtv’s service satellite has more than 60 high-power 36 MHz
-equivalent Ku-band transponders that are tailored towards direct-to-home (DTH)
and multimedia services.Additionally, up to 15 highly linearized transponders
can be assigned to each of the six beams to respond to changing market demand.
Each Ku-band beam is formed by an independent high-gain antenna system,
offering 51-53 dBW in key markets.
TV STB
STB
STB is also known as set top box. It is the digital recorder
or receiver which is a small sized box required to receive dishtv signals. STB
receives the signals from Minidish and then decodes it. Every STB is uniquely
numbered (a unique serial number is printed on every STB. No two boxes can have
the same serial number). This serial number is called the STB number. There is
a remote that comes with the STB that makes it easy to operate.
Customer Premise Equipment (CPE)
·
The Equipment or Customer Premise
Equipment (CPE) consists of the following:
·
Dish Antenna with LNB
·
STB with Remote
·
Pre-activated Viewing Card
The Dish Antenna is installed at an appropriate location at
the customer's premise. It is then connected to the STB through a cable. The
cable in turn, is connected to the TV set.
The encrypted TV signals are received from the satellite on the Dish Antenna
and transmitted to the STB. The customer is also provided with a Viewing Card,
which is inserted into a slot in the STB. The Viewing Card decrypts the TV
signals chosen and paid for by the customer, for better clarity of viewing on
TV.
Dish Antenna
Dishtv has a small Ku-Band Satellite Dish Antenna (approx. 60 cm diameter). It has a LNB (low noise block) that amplifies and down converts the signal. This signal is transmitted to the STB.
Pre-activated Viewing
Card
This card is just like a SIM card of mobile phone. To receive dishtv signals, this card needs to be activated after installation. Every VC is uniquely numbered. This number is of 11 digits followed by a hyphen and 1 digit after that. You can locate this on the VC. For Example: 01500010000-1. No 2 VC’s can have same serial number. The viewing card is pre-activated so that you can start watching the channels as soon as you get the dishtv installed.
Press releases:-
Dishtv
welcomes Rajasthan Government’s entertainment tax waiver on DTH sector
Embracing
the announcement, Jawahar Goel, Managing Director, Dishtv India said, “In
today’s age and times, when Television is the most affordable and only form of
infotainment for large sects in our country, it is ironic that watching TV is
taxed. Television plays an important role in the inclusive growth of the
country and DTH as an industry augments this growth. DTH today is not only a
source of entertainment but also provides information and means of staying
connected with the world to substantial chunk of consumers in
DTH,
currently is the only industry which is being levied service tax of 10% as well
entertainment tax on its services which varies from state to state. Even, some
of the socially taboo products like Tobacco and Liquor are not subjected to
multiple taxation as is the case in the DTH sector. The sector currently reels
under panel taxation with tax incidence of about 40%.
About
Dishtv
Dishtv
is
EARNINGS
RELEASE FOR THE QUARTER ENDED DECEMBER 31, 2010
DISH
TV ADDS RECORD 1.1 MILLION NEW SUBSCRIBERS, DOUBLES GROWTH OVER LAST YEAR
AVERAGE
REVENUE PER USER BREAKS OUT OF A FIVE QUARTER FLATTISH TREND, EMERGES STRONGER
AT `142 DESPITE SIZEABLE ACQUISITIONS
ROBUST
45% YoY GROWTH IN SUBSCRIPTION REVENUES EXPANDS TOP-LINE BY 35%
EBITDA
OF Rs.684 MILLION RAMPS UP MARGINS TO 18.2%, UP FROM 5.2% IN THE CORRESPONDING
PERIOD LAST FISCAL
Highlights
·
Dish TV achieved more than 9.4 million gross and
7.7 million net subscribers at the end of 3Q FY11, maintaining leadership as
the largest DTH player in the Asia Pacific region.
·
Strong subscriber addition and more than 5% YoY
increase in Average Revenue per User (ARPU) lead to a 45% growth in
subscription revenues of Rs.3,091 million as compared to the corresponding
period last fiscal.
·
Favorable pack mix due to increasing traction in
middle level subscription packs over base pack resulted in ARPU growing to
Rs.142 in 3Q FY11 compared to Rs.135 in the corresponding period last fiscal.
·
Subscriber acquisition cost (SAC) increased
marginally to Rs.2,142 from Rs.2,083 in the immediately preceding quarter
largely due to higher selling and distribution expenses and enhanced box
subsidy due to aggressive competition at the acquisition front.
·
Content cost as a percentage of subscription
revenue remained at 39%. Average monthly churn was at 0.9% p.m.
·
Dish TV remains best placed to provide maximum
services post acquiring additional transponders resulting in bandwidth increase
from 432 MHz to 648 MHz.
NOIDA, India;
January 21, 2011 - Dish TV India Limited (Dishtv) (BSE: 532839, NSE:
DISHTV) today reported third quarter fiscal 2011 standalone revenues of Rs.3749
million, representing 35% growth over the corresponding period last fiscal. The
EBITDA for the quarter stood at Rs.684 million, recording more than a fourfold
increase over the corresponding quarter last fiscal. The net loss reduced to
Rs.443 million, compared to Rs.763 million for the same period last fiscal. The
Board of Directors in its meeting held today, has approved and taken on record
the unaudited standalone financial results of Dish TV for the quarter ended on
December 31, 2010.
Mr. Subhash Chandra,
Chairman, Dish TV India Limited, said, “India continues to be one of the
fastest growing DTH markets in the world and Dish TV remains on track to
capitalize on the opportunity. Having consistently garnered an incremental
market share above 25% in a six player market, Dish TV’s strategic initiatives
have been delivering commendable results.”
“While subscriber
numbers have been on the rise, ARPUs in
Commenting on the
third quarter results, Mr. Chandra said, “Dish TV has delivered yet another
quarter of encouraging financial results. Its superior quarterly performance is
a reflection of its continued focus on operational efficiencies and cost
management.”
Mr. Jawahar Goel,
Managing Director, Dish TV, said, “The third quarter being festival period holds
significant potential for leveraging on the burgeoning consumer demand in the
country. In line with our expectations, Dish TV registered exceptionally strong
growth during this period. Price hike across two popular packs announced
towards the end of the preceding quarter along with strategic marketing
initiatives resulted in our package mix getting favorably skewed towards higher
value packs. We were pleased to see that despite brilliant subscriber growth
and marginal increase in subscriber acquisition costs, EBITDA margin reached a
new high of 18.2%.”
“Dish TV’s
constant emphasis on superior content and on creating an unparalleled viewing
experience for the consumer along with world class service has always made it
stand apart. The company now has another distinct advantage over competition in
the form of a significantly enhanced bandwidth capacity. We look forward to
capitalize on this lead by offering a collection of value added services and
region specific content along with a significantly enhanced number of High
Definition channels. We expect this to translate into substantial gains in
revenue and profitability while bringing more value to our subscribers and
increasing shareholder return going forward,” he added.
Commenting on the
overall performance, Mr. Goel said, “It was a strong quarter operationally and
we are now close to crossing the hump. Dish TV is just half a million less than
the critical 10 million subscriber mark and remains committed to break even at
the bottom-line and turn free cash flow positive at the earliest. With recent
operational initiatives, margin improvements and cash generation would get
further strengthened.”
Dish TV crossed
the momentous 9 million subscribers mark in the third quarter. Continuing its
subscriber acquisition spree, the company went on to add a record 500 thousand
new subscribers on its platform during the month of November ‘10.
During the
quarter, Dish TV also announced signing up of a long term contract for
additional transponders on Asiasat with ‘Antriksh’. With this, its total
transmission bandwidth increased to 648MHz. The new transponders are closely
located to the current transponders thus allowing channels beamed from it to be
available to existing customers as well.
The increased
transponder capacity will enable Dish TV to increase its standard definition
channel capacity to over 320 and high definition capacity to over 30 which will
be substantially higher than any competing DTH operator in both HD as well as
SD transmission. This substantial increase in capacity over competition is
likely to be a game changer for Dish TV in the Indian DTH market.
With a last mile
reach of more than 9.4 million subscribers, Dish TV offers a transparent new
medium for distinct advertising in an otherwise cluttered environment. Further,
with television rating measurement agencies increasing the all
Sports
particularly cricket, continues to drive the category. The impending cricket
World Cup and IPL matches are expected to provide similar growth to DTH in the
year ahead. Dish TV remains well-prepared, showcasing domestic and
international cricket to further enhance its reach amongst sports enthusiasts
across the country. It recently added the
Dish TV has been
driving the digital revolution in the country and remains focused to maintain
leadership and achieve its guided acquisition target along with aiming
profitability in the months to come.
Condensed
statement of operations:
The table below
shows the condensed statement of operations for Dish TV India Limited for the
third quarter ended December ‘10 compared to the quarter ended September ‘10.
|
Rs. million |
Quarter ended December 2010 |
Quarter ended September 10 |
% Growth Q o Q |
|
Gross revenues |
3749 |
3286 |
14.1 |
|
Expenditure |
3065 |
2764 |
10.9 |
|
EBITDA |
684 |
522 |
31.0 |
|
Depreciation |
902 |
843 |
7.0 |
|
Financial Expenses |
225 |
131 |
71.7 |
|
Profit/ (Loss) before tax |
(443) |
(452) |
-- |
|
Provision for tax |
0 |
0 |
-- |
|
Profit/ (Loss) after tax |
(443) |
(452) |
-- |
Expenditure:
Dish TV’s primary expenses include cost of goods and services, personnel
cost, administrative cost, advertisement expenses and selling expenses. The
table below shows each type as a percentage of total revenue.
|
Rs. million |
Quarter ended December 2010 |
% of Gross revenue |
Quarter ended September 2010 |
% of Gross revenue |
% Growth Q o Q |
|
Cost of goods & services |
2101 |
56.0 |
1824 |
55.5 |
15.2 |
|
Personnel cost |
134 |
3.6 |
130 |
4.0 |
3.3 |
|
Administrative Cost |
148 |
3.9 |
152 |
4.6 |
(2.9) |
|
Advertisement expenses |
152 |
4.1 |
177 |
5.4 |
(14.0) |
|
Selling & distribution expenses |
530 |
14.1 |
481 |
14.6 |
10.1 |
|
Total Expenses |
3065 |
81.8 |
2764 |
84.1 |
10.9 |
Dish TV is
Caution Concerning
Forward-Looking Statements:
This document
includes certain forward-looking statements. These statements are based on
management's current expectations or beliefs, and are subject to uncertainty
and changes in circumstances. Actual results may vary materially from those
expressed or implied by the statements herein due to changes in economic,
business, competitive, technological and/or regulatory factors. Dish TV India
Limited is under no obligation to and expressly disclaims any such obligation
to, update or alter its forward-looking statements, whether as a result of new
information, future events, or otherwise.
About Dish TV
India Limited:
Dish TV is
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.44.77 |
|
|
1 |
Rs.72.66 |
|
Euro |
1 |
Rs.63.06 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
34 |
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.