1. Summary Information
|
|
|
Country |
|
|
Company Name |
HT
MEDIA LIMITED |
Principal Name 1 |
Mr. K. K. Birla |
|
Status |
Good |
Principal Name 2 |
Ms. Shobhana Bhartia |
|
|
|
Registration # |
55-117874 |
|
Street Address |
18-20 Kasturba Gandhi Marg, Hindustan Times House, |
||
|
Established Date |
03.12.2002 |
SIC Code |
-- |
|
Telephone# |
91-11-66561234 |
Business Style 1 |
The company is engaged in Media business |
|
Fax # |
91-11-23738887 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Printing / Publication of Newspapers |
|
|
# of employees |
3143
(Approximately) |
Product Name 2 |
Printing / Publication of Periodicals |
|
Paid up capital |
Rs. 470,042,000/- |
Product Name 3 |
Radio and television broadcasting and related services |
|
Shareholders |
Promoter and Promoter Group-68.84% Public
Shareholding-31.16% |
Banking |
State
Bank of |
|
Public Limited Corp. |
YES |
Business Period |
10 Years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
A (60) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Holding Company : |
-- |
The Hindustan Times Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
5,163,463,000 |
Current Liabilities |
4,313,067,000 |
|
Inventories |
1,012,692,000 |
Long-term Liabilities |
2,798,992,000 |
|
Fixed Assets |
5,252,665,000 |
Other Liabilities |
855,729,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
7,967,788,000 |
|
Invest& other Assets |
8,228,608,000 |
Retained Earnings |
11,219,598,000 |
|
|
|
Net Worth |
11,689,640,000 |
|
Total Assets |
19,657,428,000 |
Total Liab. & Equity |
19,657,428,000 |
|
Total Assets (Previous Year) |
18,005,846,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
12,142,156,000 |
Net Profit |
1,775,906,000 |
|
Sales(Previous yr) |
12,631,120,000 |
Net Profit(Prev.yr) |
1,247,666,000 |
MIRA
INFORM REPORT
|
Report Date : |
08.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
HT MEDIA LIMITED |
|
|
|
|
Registered
Office : |
18-20 Kasturba Gandhi Marg, Hindustan Times House, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
03.12.2002 |
|
|
|
|
Com. Reg. No.: |
55-117874 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 470.042 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L22121DL2002PLC117874 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELH03846D |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the stock exchange. |
|
|
|
|
Line of Business
: |
The company is engaged in Media business |
|
|
|
|
No. of Employees
: |
3143 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (60) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
|
|
|
|
|
Maximum Credit Limit : |
USD 6700000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and a reputed company and the publisher of the news paper Hindustan Times. The financials and the company appear good. Trade relations are fair. Business is active. The company can be considered good for normal 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
India |
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 : |
18-20 Kasturba Gandhi Marg, Hindustan Times House, |
|
Tel. No.: |
91-11-66561234/ 66561651/ 66561608/23361234 |
|
Fax No.: |
91-11-23738887/23704600/ 66561206/66561270 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office: |
Park Central Building, 7th Floor Sector – 30, Delhi –
Jaipur Highway, Gurgaon – 122001, Haryana, India |
|
Board No: |
91-124-3954700 |
|
|
|
|
Factory 1 : |
C-4, UPSIDC, Sikandra, Agra-282002, |
|
|
|
|
Factory 2 : |
345/4, Bhatarhalli, Old |
|
|
|
|
Factory 3 : |
Lower |
|
|
|
|
Factory 4 : |
F-14, Industrial Area, Govindpura, Bhopal-462023, |
|
|
|
|
Factory 5 : |
Dhanbad Bhela Tand Dhaiya, P.O. – ISM, Dhanbad-826004, |
|
|
|
|
Factory 6 : |
Greater Noida Plot No. 08, Udyog Vihar, Grater Noida, Gautam Budh Nagar-201306, |
|
|
|
|
Factory 7 : |
Jallandhar B-21A, Focal Point Extension, Jallandhar-144004, |
|
|
|
|
Factory 8 : |
sNH-33, Kumjum Tola Mango, Jamshedpur-831001, |
|
|
|
|
Factory 9 : |
D-9, Site-3, Panki Industrial Area, Kanpur-208022, |
|
|
|
|
Factory 10 : |
Kolkata |
|
|
|
|
Factory 11 : |
Pocket – II, Vibhuti Khand, Gomti Nagar, Lucknow-226010, |
|
|
|
|
Factory 12 : |
Mohali C-164/165, Phase VIII B, Industrial Focal Point, Mohali-160059, |
|
|
|
|
Factory 13 : |
Mumbai Plot No. 6, TTC MIDC Industrial Area, Dighe, |
|
|
|
|
Factory 14 : |
Musaffarpur ( Franchisee
Location) N.H. No. 28, Sadalpur, Near Sudha Dairy, Muzaffurpur-8413108, |
|
|
|
|
Factory 15 : |
Noida B-02, Sector -63, Noida-201307, |
|
|
|
|
Factory 16 : |
Budh Marg, Patna-800001, |
|
|
|
|
Factory 17 : |
7, Kokar Industrial Area, Ranchi-834001, |
|
|
|
|
Factory 18 : |
|
|
|
|
|
Branch 1: |
C - 164 and 165,
Phase VIII – B Industrial Focal Point, Mohali Chandigarh, ( |
|
Tel. No.: |
91-5050600 /617/647 |
|
Fax No.: |
91-5050606 |
|
|
|
|
Branch 2 : |
Jaipur Inn B - 17 (12), Shiv Marg, Shiv Circle, Bani Park Jaipur – 302016, Rajasthan, India |
|
Tel. No.: |
91-2207402 - 06 |
|
Fax No.: |
91- 2207411 / 410 |
|
|
|
|
Branch 3 : |
Akansha Building,2nd Floor, 123 Press Complex ,M.P. Nagar, Zone I, Bhopal – 462003, India |
|
Tel. No.: |
91-5223123 / 118 |
|
Fax No.: |
91-5223110 |
|
|
|
|
Branch 4 : |
Ashok Marg, Lucknow – 226001, India |
|
Tel. No.: |
91-2205722 /2205717(Dir.) 2205702/703,202(Extn.) |
|
Fax No.: |
91-2205716 |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Ms. Shobhana Bhartia |
|
Designation : |
Vice Chairperson and Editorial Director |
|
|
|
|
Name : |
Mr. Y. C. Deveshwar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. N. Memani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Roger Greville |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N. K. Singh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ajay Relan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Priyavrat Bhartia |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. Shamit Bhartia |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. Rajiv Verma |
|
Designation : |
Whole Time Director and Chief Executive Officer |
KEY EXECUTIVES
|
Name : |
Mr. Piyush Gupta |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Dinesh Mittal |
|
Designation : |
Vice President and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2011
|
Category of
Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
19 |
-- |
|
|
161754490 |
68.83 |
|
|
161754509 |
68.83 |
|
|
|
|
|
|
22581 |
0.01 |
|
|
22581 |
0.01 |
|
Total shareholding of Promoter and Promoter Group (A) |
161777090 |
68.84 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
30135659 |
12.82 |
|
|
120 |
-- |
|
Insurance Companies |
105479 |
0.04 |
|
|
27660733 |
11.77 |
|
|
57901991 |
24.64 |
|
|
|
|
|
|
10937238 |
4.65 |
|
|
|
|
|
|
1991234 |
0.85 |
|
|
2325420 |
0.99 |
|
|
88062 |
0.04 |
|
|
70712 |
0.03 |
|
|
462 |
-- |
|
|
16888 |
0.01 |
|
|
15341954 |
6.53 |
|
Total Public shareholding (B) |
73243945 |
31.16 |
|
Total (A)+(B) |
235021035 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
235,021,035 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
The company is engaged in Media business |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS AS ON
31.03.2011
|
Particulars |
Unit |
31.03.2011 |
|
Installed
Capacity (Impression per hour) |
-- |
895000 |
|
|
|
|
|
Actual
Production: |
|
|
|
Pages |
In Lacs |
232898.89 |
|
Copies |
In Lacs |
637364 |
GENERAL INFORMATION
|
No. of Employees : |
3143 (Approximately) |
|||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S R Batliboi and Company Chartered Accountant |
|
|
|
|
Holding Company : |
|
|
|
|
|
Subsidiaries : |
|
|
|
|
|
Fellow Subsidiaries : |
|
|
|
|
|
Group Companies : |
|
|
|
|
|
Join Venture: |
|
|
|
|
|
Other Related Parties : |
|
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
362500000 |
Equity Shares |
Rs. 2/- each |
Rs. 725.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
235021035 |
Equity Shares |
Rs. 2/- each |
Rs. 470.042
Millions |
|
|
|
|
|
Note:
Of the above
i) 161,754,490 equity shares of Rs. 2/- each are held by The Hindustan Times Limited, the Holding Company.
ii) 150541825 equity shares of Rs. 2/- each were allotted as fully paid-up for consideration other than cash.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
470.042 |
470.042 |
470.042 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
11219.598 |
9618.569 |
8546.107 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
11689.640 |
10088.611 |
9016.149 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2515.375 |
1775.025 |
3698.652 |
|
|
2] Unsecured Loans |
283.617 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
2798.992 |
1775.025 |
3698.652 |
|
|
DEFERRED TAX LIABILITIES |
447.755 |
491.544 |
455.204 |
|
|
|
|
|
|
|
|
TOTAL |
14936.387 |
12355.180 |
13170.005 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
5252.665 |
5636.806 |
5594.153 |
|
|
Capital work-in-progress |
146.735 |
195.304 |
1779.421 |
|
|
|
|
|
|
|
|
INVESTMENT |
8081.873 |
6307.151 |
4055.866 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1012.692
|
943.751 |
1744.855 |
|
|
Sundry Debtors |
1821.942
|
1851.033 |
2349.601 |
|
|
Cash & Bank Balances |
638.148
|
661.222 |
602.537 |
|
|
Other Current Assets |
252.337
|
35.873 |
148.840 |
|
|
Loans & Advances |
2451.036
|
2374.706 |
2098.085 |
|
Total
Current Assets |
6176.155
|
5866.585 |
6943.918 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2034.468
|
2138.549 |
1966.231 |
|
|
Other Current Liabilities |
2278.599
|
3267.050 |
3075.649 |
|
|
Provisions |
407.974
|
245.067 |
161.473 |
|
Total
Current Liabilities |
4721.041
|
5650.666 |
5203.353 |
|
|
Net Current Assets |
1455.114
|
215.919 |
1740.565 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
14936.387 |
12355.180 |
13170.005 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
12142.156 |
12631.120 |
13230.368 |
|
|
|
Other Income |
415.939 |
360.040 |
347.349 |
|
|
|
TOTAL (A) |
12558.095 |
12991.160 |
13577.717 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw materials |
3554.605 |
4103.201 |
5401.964 |
|
|
|
Personnel Expenses |
2095.337 |
2081.763 |
2035.844 |
|
|
|
Operating and Other Expenses |
3667.455 |
3757.593 |
3940.670 |
|
|
|
Increase or Decrease in stock |
(0.295) |
(4.924) |
(0.994) |
|
|
|
Exceptional Items |
0.000 |
358.700 |
188.151 |
|
|
|
TOTAL (B) |
9317.102 |
10296.333 |
11565.635 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3240.993 |
2694.827 |
2012.082 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
187.298 |
257.315 |
316.880 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3053.695 |
2437.512 |
1695.202 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
562.883 |
637.921 |
550.116 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2490.812 |
1799.591 |
1145.086 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
714.906 |
551.925 |
292.781 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1775.906 |
1247.666 |
852.305 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
4286.933 |
3232.927 |
2513.111 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
134.000 |
95.000 |
50.000 |
|
|
|
Proposed Dividend (on equity shares) |
84.608 |
84.608 |
70.506 |
|
|
|
Tax on Proposed Dividend |
13.725 |
14.052 |
11.983 |
|
|
BALANCE CARRIED
TO THE B/S |
5830.506 |
4286.933 |
3232.927 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
2.900 |
0.101 |
0.137 |
|
|
|
Advertising |
113.705 |
54.048 |
53.641 |
|
|
|
Royalty |
74.317 |
63.866 |
53.721 |
|
|
TOTAL EXPORTS |
190.922 |
118.015 |
107.499 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2585.990 |
1834.027 |
3832.657 |
|
|
|
Stores & Spares |
41.669 |
45.427 |
89.460 |
|
|
|
Capital Goods |
10.121 |
67.212 |
936.170 |
|
|
TOTAL IMPORTS |
2637.780 |
1946.666 |
4858.287 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
7.56 |
5.31 |
3.64 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
3307.400 |
3140.900 |
|
Total Expenditure |
2544.600 |
2628.000 |
|
PBIDT (Excl OI) |
762.800 |
512.900 |
|
Other Income |
168.000 |
171.400 |
|
Operating Profit |
930.800 |
684.300 |
|
Interest |
44.300 |
56.700 |
|
Exceptional Items |
0.000 |
0.000 |
|
PBDT |
886.500 |
627.600 |
|
Depreciation |
139.000 |
158.300 |
|
Profit Before Tax |
747.500 |
469.300 |
|
Tax |
219.400 |
113.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
|
Profit After Tax |
528.100 |
356.300 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
528.100 |
356.300 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
14.14
|
9.60 |
6.27 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
20.51
|
14.25 |
8.65 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
21.79
|
15.64 |
7.99 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.21
|
0.18 |
0.12 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.68
|
0.74 |
0.98 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.31
|
1.04 |
1.33 |
LOCAL AGENCY FURTHER INFORMATION
JOINT VENTURE COMPANY
METROPOLITAN MEDIA COMPANY PRIVATE LIMITED (MMCPL)
MMCPL,
the 50:50 Joint Venture between the Company and Bennett Coleman and Company
Limited, was printing and publishing hyper-local newspapers in Delhi and NCR. Due
to decline in circulation and advertising revenue, the printing and publication
of hyper-local newspapers was suspended in December 2009. The Company and the
JV Partner are evaluating options to deal with the MMCPL entity. During the
year, MMCPL posted a loss of Rs 3.407 millions.
MANAGEMENT
DISCUSSION AND ANALYSIS
ECONOMY
The financial year
2010-11 proved to be mixed bag for the global economy. While some mature
economies, like the United States and Germany, managed to avoid the threat of a
double dip recession, other smaller economies were not as fortunate. Portugal,
Greece and Ireland were forced to confront critical challenges related to
sovereign debt, necessitating the enforcement of severe austerity measures. The
United States, however, was able to increase its quarterly GDP growth to 3%, on
an adjusted basis, by Q4 of FY 2011. Moreover, according to the US Labour
Department, unemployment fell to 8.7% from 10% over the previous year. Inspite
of decreased unemployment, the enduring upward pressure on pricing and growth
of home sales continue to be a cause for concern. The spotlight has recently
been turned on commodity prices, which have shot up exponentially over the past
year, especially in the case of base metals, crude oil and precious metals. The
unabated rise in food prices is of persistent concern. The crisis itself has led to a dramatic
deterioration in fiscal positions, causing some market worries about fiscal
imbalance in many countries. The global economy was also plagued by geo-political
tensions on display in Greece and Libya which effectively led to a surge in
crude oil prices. Subsequently, natural calamities in Japan also resulted in
logistics supply setbacks and could be responsible for checking economic growth
in the immediate future.
In sharp contrast
to the global economic difficulties, the Indian economy has continued on its
track of recovery over the past year, even though soaring rates of inflation
triggered some alarm. Not unlike China, the other major emerging economy in the
region, the Reserve Bank of India was compelled to raise interest rates in
tranches eight times last year in order to keep inflation under control while
still maintaining a healthy rate of growth. According to quick estimates
released by CSO, the GDP of India may have grown by 8.6% during FY 2011. The
country continues to benefit from the advantages of growing domestic
consumption, led by favorable demographics, as the average spending per capita
also shows increases thereby supporting the country's growth. The Reserve Bank
of India estimates the country's GDP will continue to grow at least 8% per
annum despite certain monetary tightening measures.
The WPI inflation
remained in the alarming double digits for the major part of the year,
primarily due to high food commodity prices. The boost to the economy was aided
by a healthy 4% growth in the agricultural sector, following a robust monsoon
season, as well as sustained growth in some areas of the service sector.
INDUSTRY
After struggling
through a lean patch in 2009 due to the global slowdown, the media industry
showed clear signs of recovery in 2010. Following the growth in the country's
GDP, a simultaneous hike was seen in different industry sectors and the
subsequent increase in advertising expenditure and sales promotion reflected
positively in media sector growth as well. In order to mitigate the slowdown of
the previous year, the media and entertainment industry had undertaken a number
of cost optimization measures as a result of which it not only surpassed
revenue growth in 2010 over 2009 by 11% (Source: FICCI Frames 2011), but also
improved its profitability. These growth trends are expected to persist in the
coming year since the overall Media Spend as a percentage of GDP is still
extremely low in India, when compared to other key global markets (Source: IIFL
Research). According to the FICCI-KPMG Report, the media and entertainment
industry may achieve growth of 13% in 2011 to reach R738 billion, and an
overall CAGR of 14% over the next five years across all segments. The
contribution of advertising revenues to the overall revenues for the industry
is increasing every year and is likely to touch 42% in 2012, a jump from
approximately 35-37% in previous years.
According to the
FICCI Frames estimates, advertisement revenues in the print media segment
promise to show a projected growth of around 13% over the next three years from
a much lower CAGR of 8% between 2007 and 2010.
Unlike developed countries,
it is estimated that the future of print media in India is far from bleak. The
FICCI-KPMG study suggests that a higher level of literacy is helping the cause
of print media in reaching out to the masses, particularly in Tier II and Tier
III towns. Print media accounts for approximately 30% i.e. Rs. 192880.000
Millions of the total M&E revenues. It is expected to grow at a CAGR of 10%
reaching Rs. 310100.000 Millions in 2015.
It may be noticed
that over the years, revenues from English language print media have enjoyed a
majority share of revenue. Revenue generated from Hindi and regional languages
will catch up with English, but will take a few years to match the annual
revenues anticipated for the English print media segment in the coming years.
OPERATIONS REVIEW
The financial year
2011 was a landmark year for HT Media. It began with the completion of the
Company's restructuring following the demerger of its Hindi business
undertaking into Hindustan Media Ventures Limited (HMVL) and a subsequent IPO
by HMVL. The demerger and IPO were instrumental to the Company's process of
unlocking the value of the Hindi publications, and brought about a subsequent
autonomic significance to the publications as independent profit centers.
In FY 2011, HT
Media cashed in on growing advertising volumes and posted strong growths in
revenue and profits following the revival of the economy in India.
LEADING FROM THE
FRONT WITH HINDUSTAN TIMES
Subject
substantially expanded its reach across all business verticals within print
media. As per the Indian Readership Survey released by the Media Research
Users' Council in April 2011 [IRS Q4 2010], Hindustan Times has consolidated
its position as the second largest read English newspaper in India, as the
market leader in both Delhi and NCR area, and as a strong No. 2 player in
Mumbai, with growth registered in nine out of the last ten rounds of IRS
reporting. Hindustan Times was also re-launched in key towns of Punjab to serve
this affluent state even better, and is now within striking distance of leading
circulation and readership in most key markets of Punjab and Chandigarh. In the
readership survey undertaken last year, Subject Mumbai surpassed the competitor
in terms of readership though the lead is marginal at present. They hope to
build on our lead to aggressively take on the competition and to strengthen
their leadership in the commercial capital.
PAN-INDIA BUSINESS
NEWSPAPER
In FY 2011 our
business newspaper Mint made strong progress with its launch in Kolkata and Chennai
to establish strong Pan-India credentials within the R6 billion business
newspaper segment. It was also launched in Hyderabad in April 2011. Thanks to
these moves, it consolidated its position as the 2nd largest read business
daily in India, with an over 25% readership share in the key markets of Delhi,
Mumbai and Bengaluru. Mint's collaboration with 'The Wall Street Journal' and
'Bloomberg' has given the newspaper the edge in appealing to the sensibilities
of a discerning and exceedingly well-educated reader. Their immediate challenge
is increasing readership in all other places at a similar pace as in Delhi,
where Mint remains the reader's choice.
GROWING THE HINDI
SEGMENT
The aggressive
investments made into the expansion of Hindustan in previous years were also
responsible for Hindustan becoming India's second largest Hindi newspaper,
according to the Total Readership figures from IRS Q4 2010. Hindustan's
position as a dominant No.1 in Bihar and Jharkhand and a strong No.2 in Delhi
NCR remains unchallenged; it further accelerated its rapid pace of expansion by
a launch in Gorakhpur. They are proud to report that with regard to our Hindi
flagship product Hindustan, HMVL was able to register strong growth of over 27%
in advertisement revenue over the previous financial year, well above the
industry average of 20% (approx). This proved to be a major contributor in
ensuring their overall growth in FY 2011 revenues was at a healthy 25%.
IMPETUS ON RADIO
BUSINESS
Subject foray into
the R4 billion radio industry was part of the Company's strategic goal of
gaining a toehold in all segments of the media business. It currently runs a
radio channel, Fever 104, in four metro cities-Delhi, Mumbai, Bengaluru and
Kolkata. Since breaking even approximately a year ago, HT Media's radio
business has begun to make an impact. The pace at which the radio business grew
over the last financial year was astounding. Even though revenues were a modest
Rs. 700.000 Millions, growth was close to 63%. Supported by these encouraging
results the Company will focus on consolidating and strengthening radio
presence in metropolitan cities before expanding elsewhere. Meanwhile, the
Company continues to look for inorganic opportunities in this business, as
there are chances that this sector may show signs of consolidation in the near
future. According to the FICCI-KPMG report, the radio segment in the media and
entertainment industry is expected to record a CAGR of close to 20% from 2010
to 2015, promising a healthy future for early entrants into the business.
MOBILE SOLUTIONS -
CAPTURING OPPORTUNITY
HT Mobile
continued its successful run in the year 2010-11. The Company ventured into
many new areas, where it established itself as a credible player by winning
clients' trust through innovation and optimum delivery using advanced
technology. Many new clients were welcomed onboard. Innovative mobile
applications for varied platforms like J2ME, Android, BlackBerry and iPhone
were developed and proved to be instant hits. Many campaigns also played a part
in scripting this success. HT Mobile is well on its way to tremendous vertical
growth.
DIGITAL FORAY AND
INTERNET BUSINESS
In FY 2011, HT
Media's subsidiary Firefly e-Ventures, which manages the digital businesses saw
significant development on a number of its projects. The job portal Shine.com
has gained traction in terms of increasing its database from 40 Lac candidates
to over 65 Lac candidates. Shine continues to be the fastest growing job portal
in the Indian market, with page views of over 18 million per month, and almost
4 million visits per month, as of March 2011.
HTCampus.com was a
new launch for the business, aimed at providing students with the help they
need to make informed decisions regarding higher education. Comprehensive,
updated and relevant college information is in place for over 15,000 institutes
across the country. The website has been appreciated for its intuitive user
experience and traffic has already grown to almost 2.5 million page views per
month.
PRINTING -
STARTING ON A STRONG NOTE
During FY 2011,
the Company successfully launched its printing business with its joint venture
partner Burda Druck, Germany in full commercial operations, and hopes to
capture on the opportunities emerging in the business in the near future. With
the expertise of Burda and the state-of-the-art printing facilities in Greater
Noida, well equipped to meet global requirements for bulk printing and
publishing, Subject Burda has already experienced international success and is
gearing up for an action-packed year.
PARTNERSHIP FOR
GROWTH - GOING STRONG
Subject
'Partnership for Growth' initiative, begun in FY 2007-08, enables the Company
to enter into strategic partnerships with potential growth companies. Through
these collaborations, Subject provides a complete media platform to its
partners in order to cater to their advertising and brand building needs and
thereby contributes to their growth. In return, Subject ensures a committed
stream of revenue for a longer term and participates in the growth and value
created by advertising.
The Company
continued to show a strong performance under this initiative even though the
external economic environment was not entirely favourable in the wake of the
economic slowdown. The highlight of the year was a well defined focus on the
active management of the portfolio of investments. This focus ensured that the
Company obtained significant returns through planned exits, sale of assets and
portfolio rationalization measures. In terms of new partnerships, the Company
executed a number of quality deals with prestigious companies across sectors
under this initiative.
The profits earned
from the sale of assets under this initiative in FY 2010-11 were to the tune of
Rs 135.300 millions, and thus contributed significantly to the Company's
bottom-line. Furthermore, the initiative continued to bring in appreciable
incremental advertising revenue and thereby also contributed to the topline of
the Company.
Deal exits will
become increasingly critical as the investment portfolio of the Company
expands. In such a scenario, the strong measures taken by Subject this year for
active portfolio management will serve as an important foundation for the
future.
FINANCIAL
PERFORMANCE
The financial
performance of Subject for FY 2011 has been very encouraging and is reflective
of the Company's ongoing focus on revenue optimisation, maximisation of
operating efficiency and belief in nurturing future growth engines.
OUTLOOK
Subject will look to
consolidating and building upon a year of encouraging results and forging ahead
in the coming years towards their goal of rising amongst the country's leading
media conglomerates while adapting to their reader's changing needs and
lifestyles.
They remain upbeat
about sustaining a high growth rate in advertisement revenue in both English
and Hindi publications. These will be achieved in light of a major revival in
advertisement spending in various sectors. The Company plans to promote its
businesses, in particularly the ones that have been significantly impacted by
the hike in domestic consumption, and attract the attention of an increased
number of young readers in the coming years.
Their strategy to
focus on high growth areas of classifieds, DAVP, automobiles, FMCG, education
and real estate is likely to be sustainable as these areas contribute the
maximum in terms of advertising revenues.
They remain
committed to improving yields and volumes of the Mumbai edition, which has
already gained the second spot in readership. The Mumbai edition has been
showing revenue growth of close to 30%, well above the average 20% for their
English publications.
With regard to
their radio business, the target is to consolidate their No. 1 position in
Delhi and strengthen their position in Mumbai, Kolkata and Bengaluru. The
industry projections for radio indicate robust growth in the coming year. With
the introduction of Fever Entertainment, they now have additional product
offerings in the market as well as an improved perception as a thought-leader
in the industry.
With the growth of
internet penetration in the country, HT's digital business continues its
journey of consolidating its position as a major player in the industry. HT's
digital offerings, Shine.com and HTCampus.com are on aggressive growth paths
and aim to become the leading platforms in their segment in the coming years.
Riding on the strength of their innovative propositions and a keen
understanding of the rapidly changing needs of digital consumers, they believe
they are in an excellent position to leverage the increasing popularity of
internet across the country.
FIXED
ASSETS
·
·
Building
·
Improvement to Leasehold Premises
·
Plant and Machinery
·
Furniture and Fittings
·
Vehicles
·
Website Development
·
Software Licenses
·
License Fees
·
Software for radio business
·
Music contents
UNAUDITED STANDALONE FINANCIALS RESULT FOR YEAR QUARTER ENDED
30.06.2011
(Rs.
In Millions)
|
Particulars |
Three Months Ended 30.06.2011 |
|
|
Unaudited |
|
a) Net Sales/ Income from Operations |
3286.000 |
|
b) Other Operating Income |
21.400 |
|
Total
Income |
3307.400 |
|
Expenditure |
|
|
a) (Increase)/ Decrease in stock in trade and work in
progress |
(0.005) |
|
b) Consumption of Raw Material |
959.200 |
|
c) Employee Cost |
619.000 |
|
d) Advertising and Sales Promotion |
206.400 |
|
e) Depreciation/ Amortization |
139.000 |
|
f) Other Expenses |
760.500 |
|
g) Total |
2683.600 |
|
Profit from Operations before Other Incomes, Interest and
Exceptional Items |
623.800 |
|
Other Income |
168.000 |
|
Profit Before Interest, Depreciation/ Amortization and
Exceptional Item (EBITDA) |
930.800 |
|
Interest (Including Finance Charge) |
44.300 |
|
Profit After Interest but before Exceptional Item |
747.500 |
|
Exceptional item |
-- |
|
Profit form Ordinary Activities before Tax |
747.500 |
|
Tax
Expenses |
219.400 |
|
Net Profit from Ordinary Activities after tax |
528.100 |
|
Extraordinary Item (Net Tax Expenses) |
- |
|
Net Profit for the Period |
528.100 |
|
Paid-up Equity Share Capital |
470.000 |
|
Reserves excluding Revaluation Reserve |
-- |
|
Basic and Diluted Earning per share (in Rs.) (not
annualized) |
2.25 |
|
Public
Shareholding |
|
|
Number of Shares |
73243945 |
|
Percentage of shareholders |
31.16% |
|
Promoters
and Promoter Group Shareholding |
|
|
a) Pledge / Encumberd |
|
|
Number of Shares |
Nil |
|
Percentage of Shares (As a % of the total shareholding of
Promoter and promoter group) |
Nil |
|
Percentage of shares (As a % of total Share Capital of the
company) |
Nil |
|
b) Non Encumbered |
|
|
Number of Shares |
161777090 |
|
Percentage of Shares (As a % of the total shareholding of
Promoter and promoter group_ |
100% |
|
Percentage of shares (As a % of total Share Capital of the
company) |
68.84% |
Notes :
1.
The above results
have been reviewed by the Audit Committee and approved by the Board of
Directors at the meeting held on July 16, 2011.
2.
During the Quarter, the Company has made the
following investments:
a)
HT Digital Media Holdings Limited (Subsidiary company)
- Rs. 36.400 millions as application money against allotment of Compulsorily
Convertible Debentures.
b)
W.e.f. April 1, 2011 the Company's investments in
Compulsory Convertible Debentures in a fellow subsidiary namely HT Education
Limited amounting to Rs. 20.500 Millions has been converted into 2.050 millions
equity shares of Rs. 101- each. This has resulted into HT Education Limited and
it's subsidiary HT Learning Centers Limited becoming subsidiaries of the
Company from that date.
3.
Provision for Tax includes Current Tax Expense and
Deferred Tax Charge/(Credit).
4.
Employee Stock Option detail of the Company for the
quarter ended June 30,2011 are as follows:
-
Under HTML Employee Stock Option Scheme - 83,955
options were granted, 1,06,092 options were vested, 7,400 options were
exercised and no options were forfeited.
5.
Details of number of Investor complaints/queries
for the quarter ended on June 30, 2011: Pending at the beginning - Nil;
Received 8; Disposed off - 8; Pending at the end - Nil.
6.
A Scheme of Arrangement and Restructuring u/s
391-394 read with Sections 100-104 of the Companies Act, 1956, between Firefly
e-Ventures Limited (FEVL), a subsidiary company and the Company for demerger of
lob Portal Undertaking of FEVL and transfer and vesting thereof into the
Company was approved by a Committee of Board of Directors of the Company on
December 8, 2010, subject to requisite approval(s) and sanction by the Hon'ble
Delhi High Court. The Scheme was also approved by the equity shareholders,
secured/unsecured creditors of both the companies. Owing to certain business
considerations, the Company and FEVL filed an application for withdrawal of the
Scheme, which Nas allowed by the Hon'ble Delhi High Court on July 8, 2011.
7.
Previous quarter Ps/year's figure have been
regrouped/reclassified where necessary to conform to this quarter's
classification.
8.
The CEO and CFO certificate in respect of the above
results in terms of Clause 41 of the Listing Agreement has been placed before
the Board of Directors.
STATEMENT
OF SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDED
JUNE 30, 2011
(Rs. In Millions)
|
Particular |
Three Months Ended |
|
|
30.06.2011 |
|
|
Unaudited |
|
Net Segment
Revenue |
|
|
a) Printing and Publishing of Newspapers and Periodicals |
3060.300 |
|
b) Radio Broadcast and Entertainment |
212.600 |
|
c) Unallocated |
34.500 |
|
|
|
|
Total |
3307.400 |
|
Less : Inter Segment Revenue |
-- |
|
Net Sales/
Income from Operations |
3307.400 |
|
|
|
|
Segment Results |
|
|
(Profit(+)/ Loss(-) before Tax and Interest from each Segment) |
|
|
a) Printing and Publishing of Newspapers and Periodicals |
655.100 |
|
b) Radio Broadcast and Entertainment |
25.100 |
|
|
|
|
Total |
680.200 |
|
Less : (i) Unallocated |
56.400 |
|
(ii) Interest |
44.300 |
|
Add: Other Income |
168.000 |
|
Total Profit
before Tax |
747.500 |
|
|
|
|
Capital Employed |
|
|
(Segment Assets - Segment Liabilities) |
|
|
a) Printing and Publishing of Newspapers and Periodicals |
3808.600 |
|
b) Radio Broadcast and Entertainment |
846.500 |
|
c) Unallocated |
7543.500 |
|
Total |
12198.600 |
WEB SITE DETAILS
BUSINESS
DESCRIPTION
Subject publishes Hindustan Times, an English daily, and Mint, a
business paper daily. The Company is engaged in providing entertainment, radio broadcast
and other related activities through its radio stations operating under brand
name Fever 104. The Company has job portal livemint.com, Shine.com and
student-focused portal HTCampus.com. It offers HT City, which is a guide on
lifestyle, happenings and entertainment; Subject Brunch, which provides
coverage on food, travel, fashion, youth, music, technology and celebrities;
Subject Business, which provides design and use of infographics; HT Horizons,
which provides guidance and mentorship to students; HT Next, which is a
newspaper exclusively for students in school; HT Estates, which provides
helpful information to customers to buy and sell property, and Shine Weekly,
which is a print career supplement that offers both online and print
recruitment. For the nine months ended 31 December 2010, HT Media Limited's
revenue increased 25% to RS13.33B. Net income increased 44% to RS1.28M.
Revenues reflect an increase in income from Printing AND Publishing segment,
higher income from Radio Broadcast segment and a rise in income from internet
segment. Net income also reflects a decrease in interest expenses, higher gross
profit margins and a rise in operating profit margins
MANGEMENT
SHOBHANA BHARTIA -
CHAIRPERSON OF THE BOARD, EDITORIAL DIRECTOR
Smt. Shobhana Bhartia is Chairperson of the Board, Editorial Director of HT Media Limited
Education
·
University of Calcutta
SHAMIT BHARTIA -
WHOLE TIME DIRECTOR
Shri. Shamit Bhartia is Whole Time Director of HT Media Limited
Education
·
Economics, Dartmouth College
PRIYAVRAT BHARTIA -
WHOLE TIME DIRECTOR
Shri. Priyavrat Bhartia is Whole Time Director of HT Media Limited.
Education
·
MBA , Stanford University
·
B Economics, Dartmouth College
YOGESH CHANDER
DEVESHWAR - NON-EXECUTIVE INDEPENDENT DIRECTOR
Shri. Yogesh Chander Deveshwar is Non-Executive Independent Director of HT Media Limited
Education
· B Technology, Indian Institute of Technology, Delhi
KASHI NATH MEMANI -
NON-EXECUTIVE INDEPENDENT DIRECTOR
Shri. Kashi Nath Memani is Non-Executive Independent Director of HT Media Limited
Education
·
B , University of Calcutta
AJAY RELAN -
NON-EXECUTIVE INDEPENDENT DIRECTOR
Shri. Ajay Relan has been appointed as Non-Executive Independent Director of HT Media Limited with effect from August 24, 2009. He was Non-Executive Independent Director of the Company from November 2004 to September 2008
Education
· M Business Administration, Indian Institute of Management, Ahmedabad
· BA Economics, University of Delhi
N. K. SINGH -
NON-EXECUTIVE INDEPENDENT DIRECTOR
Shri. N. K. Singh is Non-Executive Independent Director of HT Media Limited
RAJIV VERMA - CHIEF
EXECUTIVE OFFICER, WHOLE TIME DIRECTOR
Shri. Rajiv Verma is Chief Executive Officer, Whole Time Director of HT Media Limited, has been appointed as Whole-time Director of the Company with effect from August 24, 2009
Education
·
Mechanical Engineering, University of Delhi
NEWS
JUBILANT FOOD WORKS Q2 MISSES ESTIMATES
04 November 2011
India, Nov. 4 --
Jubilant Food Works Limited, the Indian franchisee of Domino's Pizza Inc.
posted second quarter profit that missed analysts' estimates.
The company
reported a net profit of Rs. 236.700 millions in the quarter ending September,
up 28% from Rs. 184.400 millions in the corresponding quarter a year ago. This
missed the median estimate of Rs. 249.000 millions by 14 analysts, according to
data compiled by Bloomberg.
Revenue rose 47%
to Rs. 2400.000 millions during the quarter, up 47.1% from Rs. 1633.900
millions, from a year ago. The promoters of HT Media Limited, which publishes
Mint, and Jubilant, are closely related. There are no promoter crossholdings.
HT MEDIA TRADES IN GREEN ON THE BSE
04 November 2011
India, Nov. 04 -- HT Media is currently trading at Rs 141.90, up by 0.15
points or 0.11% from its previous closing of Rs 141.75 on the BSE. The scrip
opened at Rs 142.85 and has touched a high and low of Rs 142.85 and Rs 141.20
respectively. The BSE group 'B' stock of face value Rs 2 has touched a 52 week
high of Rs 175.00 on 5-Nov-2010 and a 52 week low of Rs 125.00 on
26-Nov-2010.Last one week high and low of the scrip stood at Rs 145.95 and Rs
141.00 respectively. The current market cap of the company is Rs. 33314.200
millions. The promoters holding in the company stood at 68.84% while
Institutions and Non-Institutions held 24.64% and 6.53% respectively.HT Media,
publisher of the Hindustan Times newspaper, may sue Multi Commodity Exchange
(MCX) over a dispute regarding HT media's stake not being offered for sale in
the proposed initial public offer (IPO) of the commodity bourse. On March 30,
2011 through a share purchase agreement (SPA) executed among Edelweiss,
Financial Technologies, MCX and HT Media, it had purchased 163,388 shares of
MCX from Edelweiss Capital for about Rs 100.000 millions, which were credited in
HT Media's demat account. MCX had signed a contract with HT Media to place
advertisements worth Rs 100.000 millions for five years on a net billing basis
in the group's newspapers, journals, magazines, books and other media
properties. In the SPA, it was covenanted by MCX and Financial Technologies
that they will use reasonable endeavors to bring an IPO of the commodity bourse
within 36 months of the SPA and would include all or part of the shares held by
HT Media under "offer for sale". On March 31 this year MCX filed its
draft red-herring prospectus with the Securities and Exchange Board of India
(SEBI) after completion of the prescribed one-year lock-in period of HT Media's
shares, without including the media group's shares in the offer, committing a breach
of the SPA, according to HT Media.
HT MEDIA MAY SUE MCX OVER IPO DISPUTE
04 November 2011
India, Nov. 04 -- HT Media, publisher of the Hindustan Times newspaper,
may sue Multi Commodity Exchange (MCX) over a dispute regarding HT media's stake
not being offered for sale in the proposed initial public offer (IPO) of the
commodity bourse. On March 30, 2011 through a share purchase agreement (SPA)
executed among Edelweiss, Financial Technologies, MCX and HT Media, it had
purchased 163,388 shares of MCX from Edelweiss Capital for about Rs 100.000
millions, which were credited in HT Media's demat account. MCX had signed a
contract with HT Media to place advertisements worth Rs 100.000 millions for
five years on a net billing basis in the group's newspapers, journals,
magazines, books and other media properties. In the SPA, it was covenanted by
MCX and Financial Technologies that they will use reasonable endeavors to bring
an IPO of the commodity bourse within 36 months of the SPA and would include
all or part of the shares held by HT Media under "offer for sale". On
March 31 this year MCX filed its draft red-herring prospectus with the
Securities and Exchange Board of India (SEBI) after completion of the
prescribed one-year lock-in period of HT Media's shares, without including the
media group's shares in the offer, committing a breach of the SPA, according to
HT Media.
T-SERIES FACES PROBE ON ROYALTY PAYMENTS
31 October 2011
New Delhi, Oct. 31
-- The Competition Commission of India (CCI) has asked its director general to
investigate whether leading music company Super Cassettes Industries Limited,
which owns the T-Series label, is charging arbitrary royalty rates from radio
broadcasters.
If CCI establishes
that T-Series is abusing its dominant position in the music industry, it can
take several steps-from imposing a cease and desist order to charging a
penalty- which may bring relief to a number of radio channels.
"The case is
based on a petition filed by law firm Amarchand Mangaldas on behalf of HT Media
Limited. CCI has found prima facie merit in the submission of the informant
that radio broadcasters have no option but to accede to the terms dictated by
T-Series," said a senior CCI official who did not want to be named.
T-Series has an estimated 80% market share in music rights. HT Media publishes
and operates four FM radio stations under the Fever 104 brand.
CCI has directed
the directorate general to submit the report within 60 days, the official said.
Another person
close to the case said if T-Series was found to be seeking very high rates for
music played on HT Media's radio stations, the move could be deemed
anti-competitive by CCI.
HT Media has based
its petition on the Copyright Board having ruled in September last year that,
for sound recordings, a music company should charge not more than 2% of net
revenue from radio broadcasts as royalty, said the person, who didn't want to
be identified. T-Series is charging Rs 660 per needle hour.
"This works
out to be almost four times higher than what is stipulated," said the
person. A needle hour is the music industry's equivalent of a regular hour.
T-Series was
charging arbitrary rates under other heads such as performance royalty, the
person said.
"Based on
four different court rulings, radio broadcasters feel there should not be
royalty on performance as there is no performance happening in playing CDs or
DVDs but T-Series is charging Rs 660 per needle hour for that too saying there
is performance involved in running them as lyrics and other things are
included," said the person cited earlier.
Neeraj Kalyan,
president, T-Series, declined to comment on the case. "We will respond as
and when we hear of the CCI order," he said.
Pallavi S. Shroff,
senior partner at Amarchand Mangaldas and counsel for HT Media, also declined
to comment.
A senior executive
at another radio station said T-Series gets the music rights to 80-90% of new
films.
"Given that
most radio stations play contemporary Bollywood music, it becomes impossible to
ignore T-Series. It's this monopoly that has prompted the company to charge
more than what radio stations pay other music companies," said this
executive. He requested not to be identified as the matter was sensitive.
He said that some
radio stations considered boycotting T-Series music but decided against the
move. "It doesn't work in the long run and listeners will complain
eventually when they don't get to hear tracks of new films," he added.
T-Series' charges
are in with the old Copyright Board Order passed in 2002 since it is not
covered under the new Copyright Board Order of 2010 unlike the other music
companies, said Prashant Panday, chief executive of 98.3 Radio Mirchi, the
radio station owned by Entertainment Network India Limited, part of the Times
Group.
"The legal
matter is pending and that's why temporarily radio stations pay much more to
T-Series compared to others," said Panday.
Panday said such
payments should not vary among different music companies.
According to
earlier media reports, T-Series had sought an injunction from the Delhi high
court exempting it from the 2010 Copyright Board Order.
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 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. 49.08 |
|
|
1 |
Rs. 78.65 |
|
Euro |
1 |
Rs. 67.79 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
60 |
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.