MIRA INFORM REPORT

Report Date :

22.02.2014

IDENTIFICATION DETAILS

Name :	ENTERTAINMENT NETWORK (INDIA) LIMITED
Registered Office :	4^th Floor, A Wing, Matulya Centre, Senapati Bapat Marg, Lower Parel, Mumbai - 400013, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	24.06.1999
Com. Reg. No.:	11-120516
Capital Investment / Paid-up Capital :	Rs. 476.704 Millions
CIN No.: [Company Identification No.]	L92140MH1999PLC120516
TAN No.: [Tax Deduction & Collection Account No.]	MUME03661A
PAN No.: [Permanent Account No.]	AAACE796G
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in FM Radio Broadcasting Business.
No. of Employees :	733 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (62)

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 20090000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a subsidiary of “TIMES INFOTAINMENT MEDIA LIMITED”. It is a well-established company having fine track record. The rating reflects strong financial risk profile supported by strong liquidity position and decent profitability of the company. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for 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.

INDIAN ECONOMIC OVERVIEW

The worst is over for India’s economy with gross domestic product likely to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s Analytics. Concerns over the rupee and current account deficit are under control, said the agency. Ratings firm Crisil has forecast 6 % growth for 2014/15 up from the estimated 4.8 % for 2013/14.  Total economic growth, infrastructure bottlenecks and lack of transparency and consistency in foreign direct investment policies seem to have taken a toll on India’s attractiveness as an investment destination, says an Ernst & Young survey.  Projects with FDI component fell 16.4 % across the globe in 2012 from the previous year.  The drop in India was steeper at 21 %. State run carrier Air India is doling out free tickets to its 24000 employees, even as it expects to incur a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn. 550000 number of jobs generated across India in 2013, a fall of 0.4 % as compared to with a year earlier. The National Capital Region has a one-fourth share in total jobs created, according to a study by industry lobby group Assochem, Banks, real estate, automobile and telecommunications sectors are showing a rise of job creation. $ 805 mn investments by venture capital firms in India during 2013, registering a drop of about 18 % over the previous year. The Information Technology and IT-Enabled Services Industry retained its status as the favourable venture capital investors in 2013. Pakistan has temporarily banned gold imports for the second time in six months, as it tries to stem smuggling into India. India’s import duty on gold is 10 % and curbs on purchases have dried up legal imports into what used to be the world’s biggest bullion buyers. The World Gold Council puts the amount smuggled into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed bank deposits estimated to be about Rs 35000 mn be used for education and awareness among depositors.  According to the plan, deposits that have not been claimed for at least 10 years will be transferred to the scheme.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED

MANAGEMENT NON-COOPERATIVE

(CONTACT NO.: 91-22-67536983)

LOCATIONS

Registered Office :	4^th Floor, A Wing, Matulya Centre, Senapati Bapat Marg, Lower Parel, Mumbai - 400013, Maharashtra, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	n.subramanian@timesgroup.com   dalpatraj.jain@timesgroup.com mehul.shah@timesgroup.com business@radiomirchi.com
Website :	http://www.enil.co.in
Corporate Office :	Trade Gardens, Ground Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India
Tel. No.:	91-22-67536983
Fax No.:	91-22-67536800
Studios :	Located at: · Ahmedabad · Aurangabad · Bengaluru · Bhopal · Chennai · Coimbatore · Delhi · Hyderabad · Indore · Jabalpur · Jaipur · Jalandhar · Kanpur · Kolhapur · Kolkata · Lucknow · Madurai · Mangalore · Mumbai · Nagpur · Nashik · Panjim · Patna · Pune · Raipur · Rajkot · Surat · Thiruvananthapuram · Vadodara · Varanasi · Vijaywada · Visakhapatnam

DIRECTORS

AS ON 31.03.2013

Name :	Mr. Vineet Jain
Designation :	Chairman
Name :	Mr. A. P. Parigi
Designation :	Director
Date of Birth/Age :	15.07.1949
Qualification :	Master degree in Business Administration from the Faculty of Management Studies, University of Delhi and also holds a Bachelor degree in Economics and a Master degree in Sociology from the Delhi School of Economics.
Date of Appointment :	01.10.2009
Other Directorship :	Bennett, Coleman And Company Limited, Times Infotainment Media Limited, Times Innovative Media Limited, Alternate Brand Solutions (India) Limited, Times Global Broadcasting Company Limited, Artha Financial Services Limited, Accel Media Ventures Limited, Accel Frontline Limited, Worldwide Media Private Limited, Appglow Management Private Limited. Foreign Companies: TIML Global Limited, TIML Golden Square Limited, TIML Radio Holdings Limited, TIML Radio Limited, One Golden Square Creative Limited, TIML Digital Radio Limited.
Name :	Mr. B. S. Nagesh
Designation :	Director
Date of Birth/Age :	12.04.1959
Qualification :	A degree of Masters in Management Studies from the Banaras Hindu University
Date of Appointment :	14.08.2012
Other Directorship :	Shoppers Stop Limited, Marico Industries Limited, Hypercity Retail (India) Limited, Nagesh (BSN) Consults Private Limited
Name :	Mr. N. Kumar
Designation :	Director
Date of Birth/Age :	28.01.1950
Qualification :	Engineering Graduate in Electronics and Communication from Anna University, Chennai.
Date of Appointment :	05.11.2005
Other Directorship :	Bharti Infratel Limited, Bharti Infratel Ventures Limited, Times Innovative Media Limited, MRF Limited, Take Solutions Limited, Mphasis Limited, eG Innovations Private Limited, eG Innovations Pte Limited, Madhura Kumar Properties Private Limited, N. K. Trading & Consultancy Private Limited, Cubbon Road Properties Private Limited, Nani Palkhivala Arbitration Centre (Sect. 25 Company), Singapore India Partnership Foundation (Sect. 25 Company).
Name :	Mr. Ravindra Dhariwal
Designation :	Director
Name :	Mr. Ravindra Kulkarni
Designation :	Director
Name :	Mr. Richard Saldanha
Designation :	Director
Name :	Ms. Vibha Paul Rishi
Designation :	Director
Date of Birth/Age :	19.06.1960
Qualification :	An alumnus of FMS, Delhi
Date of Appointment :	14.08.2012
Other Directorship :	Future Venture India Limited
Name :	Mr. Prashant Panday
Designation :	Executive Director and Chief Executive Officer
Date of Birth/Age :	08.07.1965
Qualification :	Post Graduate Diploma in Management from Indian Institute of Management, Bangalore and Degree of B.E. Electronics and Communication – Gujarat University.
Date of Appointment :	01.07.2010
Other Directorship :	Alternate Brand Solutions (India) Limited, Member of the Board of Governors of Market Research Users Council.

KEY EXECUTIVES

Name :	Mr. Mehul Shah
Designation :	SVP - Compliance and Company Secretary
Management Team :	· Prashant Panday, Executive Director and CEO · N. Subramanian, Group Chief Financial Officer · Hitesh Sharma, Chief Operating Officer · Tapas Sen, Chief Programming Officer · Sujata Bhatt, Chief Marketing Officer and Head of HR · Mahesh Shetty, Chief Strategy Officer and RD - (North and East) · Anand Parameswaran, · Chief Business Officer and RD - (South) · Yatish Mehrishi, EVP and RD - (West and Central) · Vanditta Malhotra Hegde, SVP and Legal Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2013

Category of Shareholder	Total No. of Shares	As a %
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	33918400	71.15
Sub Total	33918400	71.15
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	33918400	71.15
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	719304	1.51
Financial Institutions / Banks	1546	0.00
Foreign Institutional Investors	7645031	16.04
Sub Total	8365881	17.55
(2) Non-Institutions
Bodies Corporate	2476160	5.19
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1375924	2.89
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1407922	2.95
Any Others (Specify)	126128	0.26
Non Resident Indians	119310	0.25
Trusts	86	0.00
Clearing Members	6732	0.01
Sub Total	5386134	11.30
Total Public shareholding (B)	13752015	28.85
Total (A)+(B)	47670415	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	47670415	100.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Sl. No.	Name of the Shareholders	Details of Shares held
		No. of Shares held	As a % of
1	Times Infotainment Media Limited	30526560	64.04
2	Bennett, Coleman And Company Limited	3391840	7.12
	Total	33918400	71.15

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Sl. No.	Name of the Shareholders	No. of Shares held	Shares as %
1	Amansa Capital Pte Limited A/c Amansa Holdings Private Limited	2187611	4.59
2	SBI Life Insurance Company Limited	2038699	4.28
3	Acacia Partners LP	1557500	3.27
4	Acacia Institutional Partners LP	1213928	2.55
5	Acacia Conservation Fund LP	720000	1.51
6	Acacia Banyan Partners	492400	1.03
	Total	8210138	17.22

BUSINESS DETAILS

Line of Business :	Subject is engaged in FM Radio Broadcasting Business.
Brand Name :	‘Radio Mirchi’

GENERAL INFORMATION

No. of Employees :	733 (Approximately)
Bankers :	HDFC Bank Limited

Banking Relations :	--
Auditors :
Name :	Price Waterhouse And Company Chartered Accountants
Address :	Bangalore, Karnataka, India
Legal Advisors :	· Mrs. Pratibha M. Singh, Singh And Singh Law Firm LLP · Halai And Company, Advocates And Legal Consultants
Ultimate Holding Company :	Bennett, Coleman And Company Limited (BCCL)
Holding Company :	Times Infotainment Media Limited (TIML) *
Subsidiary Company :	Alternate Brand Solutions (India) Limited (ABSL)
Fellow Subsidiary Companies :	· Mirchi Movies (India) Limited (MML) * · Times Innovative Media Limited (TIM) · TIM Delhi Airport Advertising Private Limited (TIMDAA) · Times Internet Limited (TIL) · Times Global Broadcasting Company Limited (TGBCL) · Times Business Solutions Limited (TBSL) · Times VPL Limited (TVL) * · Vardhaman Publishers Limited (VPL) · Times Websol Limited (TWL) · Times Mobile Limited (TM) · Brand Equities Treaties Limited (BETL)
Other Related Parties :	· Worldwide Media Private Limited (WWM) · Bennett Property Holding Company Limited (BPHCL) · BCCL International Events Private Limited (BIEPL) · Aegon Religare Life Insurance Company (ARLIC)

Note:

* There are no transactions during the year

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
120,000,000	Equity Shares	Rs. 10/- each	Rs. 1200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
47,670,415	Equity Shares	Rs. 10/- each	Rs. 476.704 Millions

NOTES:

(a) Terms attached to equity shares

The Company has only one class of equity shares. Each shareholder is eligible for one vote per share held. The par value per share is ` 10. The Company declares dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing annual general meeting.

(b) Shares held by Holding company and Ultimate holding company

Particulars	Shares (nos)
i) Equity Shares of Rs. 10 each held by Times Infotainment Media Limited, the Holding Company.	30,526,560
ii) Equity Shares of Rs. 10 each held by Bennett, Coleman & Company Limited, the Ultimate Holding Company.	3,391,840

(c) Details of shares held by shareholders holding more than 5% of the aggregate shares in the company

Name of Shareholders	Shares (nos)	(in %)
i) Times Infotainment Media Limited, the Holding Company	30,526,560	64.04%
ii) Bennett, Coleman & Company Limited, the Ultimate Holding Company.	3,391,840	7.12%
iii) SBI Life Insurance Company Limited.	2,428,312	5.09%

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	476.704	476.704	476.704
(b) Reserves & Surplus	4,546.332	3,925.393	3,360.298
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	5,023.036	4,402.097	3,837.002
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	36.616	97.906	88.534
(c) Other long term liabilities	4.240	0.000	0.000
(d) long-term provisions	42.665	38.223	29.089
Total Non-current Liabilities (3)	83.521	136.129	117.623
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	443.476	420.069	236.413
(c) Other current liabilities	104.552	102.057	267.615
(d) Short-term provisions	241.380	89.511	115.130
Total Current Liabilities (4)	789.408	611.637	619.158
TOTAL	5,895.965	5,149.863	4,573.783
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	496.851	586.491	673.112
(ii) Intangible Assets	706.637	910.847	1,127.056
(iii) Capital work-in-progress	0.000	0.912	0.552
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	81.141	80.250	75.250
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	117.625	128.725	211.808
(e) Other Non-current assets	65.651	73.656	77.572
Total Non-Current Assets	1,467.905	1,780.881	2,165.350
(2) Current assets
(a) Current investments	3,097.154	1,770.069	855.753
(b) Inventories	0.000	0.000	0.000
(c) Trade receivables	994.068	922.403	1,038.006
(d) Cash and cash equivalents	122.376	443.253	156.074
(e) Short-term loans and advances	200.746	220.086	357.296
(f) Other current assets	13.716	13.171	1.304
Total Current Assets	4,428.060	3,368.982	2,408.433
TOTAL	5,895.965	5,149.863	4,573.783

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations	3,383.877	3,014.253	2,799.596
		Other Income	169.732	115.222	47.252
		TOTAL	3,553.609	3,129.475	2,846.848
Less	EXPENSES
		Production expenses	154.294	146.332	160.947
		License fees	180.920	152.015	140.232
		Employee benefits expense	735.555	628.605	564.438
		Other expenses	1,271.033	1,080.416	1,024.354
		TOTAL	2,341.802	2,007.368	1,889.971
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		1,211.807	1,122.107	956.877
Less	FINANCIAL EXPENSES		0.162	0.014	11.183
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		1,211.645	1,122.093	945.694
Less/ Add	DEPRECIATION/ AMORTISATION		317.201	324.625	335.960
	PROFIT ON SALE OF LONG TERM INVETSMENT		0.000	0.000	126.848
	PROFIT BEFORE TAX		894.444	797.468	736.582
Less	TAX		217.733	232.373	214.493
	PROFIT AFTER TAX		676.711	565.095	522.089
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2040.176	1475.081	952.992
Less	APPROPRIATIONS
		Proposed dividend (including dividend distribution tax)	55.772	0.000	0.000
	BALANCE CARRIED TO THE B/S		2661.115	2040.176	1475.081
	EARNINGS IN FOREIGN CURRENCY
		Consultancy services	37.468	13.164	0.000
	IMPORTS
		Capital Goods	1.983	2.668	4.236
	Earnings Per Share (Rs.)		14.20	11.85	10.95

QUARTERLY RESULTS

PARTICULARS	30.06.2013	30.09.2013	31.12.2013
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	852.400	865.500	985.200
Total Expenditure	553.400	612.700	603.000
PBIDT (Excl OI)	299.000	252.800	382.200
Other Income	52.600	55.000	56.400
Operating Profit	351.500	307.800	438.600
Interest	0.100	0.100	0.100
Exceptional Items	0.000	0.000	0.000
PBDT	351.500	307.700	438.600
Depreciation	78.000	79.700	80.900
Profit Before Tax	273.400	228.100	357.700
Tax	74.200	64.000	98.900
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	199.200	164.100	258.800
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	199.200	164.100	258.800

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	19.04	18.06	18.34
Net Profit Margin (PBT/Sales)	(%)	26.43	26.46	26.31
Return on Total Assets (PBT/Total Assets}	(%)	15.38	15.73	16.38
Return on Investment (ROI) (PBT/Networth)		0.18	0.18	0.19
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		5.61	5.51	3.89

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. in Millions)	(Rs. in Millions)	(Rs. in Millions)
Share Capital	476.704	476.704	476.704
Reserves & Surplus	3,360.300	3,925.390	4,546.330
Net worth	3,837.002	4,402.097	5,023.036
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. in Millions)	(Rs. in Millions)	(Rs. in Millions)
SALES	2,799.600	3,014.250	3,383.880
		7.667	12.263

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. in Millions)	(Rs. in Millions)	(Rs. in Millions)
Sales	2,799.600	3,014.250	3,383.880
Profit	522.089	565.095	676.711
	18.65%	18.75%	20.00%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

LITIGATION DETAILS

HIGH COURT OF BOMBAY

CASE DETAILS

BENCH: BOMBAY

Lodging No: NMSL/2007/2012 Filing Date: 03.07.2012 Reg. No.: NMS/1692/2012 Reg. Date: 19.07.2012

Main Matter

Lodging No: SL/1668/2007 Reg. No.: S/1588/2007

Petitioner: PHONOGRAPHIC PERFORMANCE LTD. Respondent: ENTERTAINMENT NETWORK (INDIA) LIMITED

Resp. Adv.: MULLA AND MULLA AND C.B. AND C (1) ()

District: MUMBAI

Bench: SINGLE

Status: Pre-Admission Category: NOTICE OF MOTION

Last Date: 06.01.2014 Stage: CHAMBER SUMMONS FOR HEARING [ORIGINAL SIDE MATTERS]

Last Coram: PROVISIONAL BOARD

Act: Code of Civil Procedure 1908

CURRENT MATURITIES OF LONG TERM DEBT: NOT AVAILABLE

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10062091	27/07/2007	650,000,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMI  TED	52/60, MAHATMA GANDHI ROAD, MUMBAI - 400001, MAHARASHTRA, INDIA	A19958446
2	10039746	07/12/2009 *	300,000,000.00	KOTAK MAHINDRA BANK LIMITED	36-38A, NARIMAN BHAVAN, 227, D, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA	A75777524

* Date of charge modification

NATURE OF OPERATIONS

The Company was incorporated on June 24, 1999. The Company operates FM radio broadcasting stations in 32 Indian cities under the brand name ‘Radio Mirchi’. The Company’s principal revenue stream is advertising. Advertising revenues are generated through the sale of air time in the Company’s FM radio broadcasting stations.

FINANCIAL PERFORMANCE

The Company retained its position as the market leader in Private FM Radio Broadcasting Industry. Total income of the Company increased from Rs. 3129.475 Millions during the previous year to Rs. 3553.609 Millions during the year. Profit after tax was higher at Rs. 676.711 Millions.

OPERATIONS

The financial year was a challenging one for the entire media industry. The slowdown in the economy, with the GDP growth expected to be 5.5% in CY2012, affected the Indian Advertising industry, as companies affected by the slowdown resorted to cuts in advertising spends to maintain profit margins. The advertising industry reported a growth of an estimated 9% during CY2012. It is important to point out that GDP growth numbers are measured in “real” terms, while advertising growth numbers are indicated in “nominal” terms. This means that the growth in the advertising industry trailed the overall GDP growth rate, something that typically happens under poor economic growth conditions.

The radio industry has turned in a much stronger performance in FY13, compared to the rest of the traditional media segments, growing at an estimated 10% during the year. The Company has reported even better growth at 12.3%. The Company’s strategy of developing a multiple products portfolio (which advertisers can use for their marketing activities) has yielded the higher growth. This led to a strong net profit growth as well, at 19.8% to Rs. 677.000 Millions. The Company generated Rs. 1001.000 Millions of cash flow during FY13. At the end of FY13, the Company had Rs. 3225.000 Millions of free cash and cash equivalents.

The Company’s revenue market share remained strong at between 33-35% of the private FM industry. Radio Mirchi continues to enjoy the confidence of its listeners and it remains the clear No. 1 radio brand as per the Indian Readership Survey (IRS)–the only pan-India media research survey which also includes radio listenership. According to the latest IRS survey (Q4 2012), Radio Mirchi has a weekly listenership of 37.5 million. Their listenership is more than 50% higher than that of the nearest competitor brand.

In recognition of the music fraternity’s exceptional creativity, the Company organized yet another edition – the 5th – of the Mirchi Music Award (MMA) this year. The MMAs are now held in all major languages. Apart from the flagship Hindi, MMAs are also held in the 4 South Indian Languages (4^th edition of the awards to be held in June 2013) and Bangla (2nd edition completed in FY13). During FY13, for the first time, the awards were held in Marathi as well. The Hindi MMA had the who’s who of the music and film fraternity in attendance. The TVR of the main show, aired on Colors TV, was 2.1, a 60% improvement over last year’s TVR. But what was even more gratifying than the TVR was the support and presence of the entire music fraternity.

The Company operates one of India’s most popular radio websites. They stream four popular internet radio stations, which are available to a worldwide audience. They also have a strong presence on social networking sites. They have 1 million “fans” on Facebook. This helps us “connect” with online users, get “feedback” on the brand and also “talk” to them about their new plans. In addition, they also operate a YouTube channel of their own (total views upwards of 2.6 million till date) and a twitter handle (about 16000 followers). Together, Mirchi’s digital footprint spans 2.5 million people across all its platforms.

The Company won several awards and recognitions during the year. Radio Mirchi won the Popular Radio Channel of the Year Award at the World Brand Congress 2012. The forum honors the world’s branding and marketing elite at the Global Awards for Brand Excellence. Mirchi won twelve awards at the Excellence in Radio Awards (ERA) at the India Radio Forum (IRF) this year – the most number of awards won by any broadcaster. Their FY 2011-12 Annual Report “Reimagining Radio” won the gold for innovative design and layout at the Midas awards. Midas recognizes the world’s best in financial advertising. Founded in 2001 and based out of New York, the jury includes creative and art directors from all over the world. In less than a year after its launch, Radio Mirchi UAE was voted the best Radio Station in the Popular Choice category at the 5th Annual Masala Awards held in that country. The award demonstrates the power of the Mirchi brand and the loyal audience that it has built there in a short period of time.

The Cabinet approved the Phase 3 expansion policy in May 2013, the biggest growth opportunity for the private FM radio sector. Auctions for new licenses and new cities are expected to commence before the end of FY14. New stations should be operational within a year from the auctions getting completed. For the Company, expanding nationally and within the big cities is a priority.

MANAGEMENT DISCUSSION AND ANALYSIS

MEDIA INDUSTRY STRUCTURE AND DEVELOPMENTS

World Economy is poised to strengthen

According to the World Economic Outlook report of the IMF, released in April 2013, the world economy is poised to grow at 3.3% in 2013 and 4% in 2014. This is higher than the growth recorded in the previous years and augurs well for the world economy. While growth in emerging markets and developing economies is forecast to reach 5.3% in 2013 and 5.7% in 2014, from a lower number in 2012, growth in the United States is forecast to be 1.9% in 2013 and 3.0 % in 2014. The Euro Area is forecast to de-grow by 0.3% in 2013 and recover partially in 2014 and grow at 1.1%. Overall, the economic sentiment is forecast to improve worldwide in the next two years.

Indian Economy – to be back on the growth path in FY14

The Finance Minister, in his budget speech this year indicated that the Indian economy is set to grow at 6.5% in FY14. And even though FY13 was a year of slow growth, only China and Indonesia (amongst the large economies) grew faster than India. In FY14, only China is expected to grow faster than India.

Morgan Stanley in a report states:

“They expect the initial phase of recovery to be driven by an improvement in growth mix and productivity growth rather than a big rise in investment. The starting point of macro environment stability (inflation, current account deficit and high banking sector loan deposit ratio) will still likely constrain domestic demand from staging a strong recovery.”

The projected growth rate of 6.5% is a marked improvement over the 5.5% growth likely in FY13 but much below the potential of 8% that India is capable of. Opinion on this growth forecast is divided, with many experts believing that it is achievable and many thinking otherwise. The IMF for instance has a conservative estimate of 5.7%. The Government has promised more reforms including in vital sectors of the economy like Banking, Insurance and pensions (which should bring in more foreign investments), land acquisition (which should make land acquisitions more expensive, but more easy) etc. It has also promised to speed up decision making in core areas like infrastructure where environmental concerns have held back approvals of large projects for several years. The Government has set up a Cabinet Committee on Infrastructure, headed by the PM, to remove the bottlenecks in large infrastructure projects with investment exceeding Rs. 10000.0000 Millions. The Government has also said repeatedly that it will stick to the fiscal target of 4.8% in FY14, a number that now carries credibility after the successful achievement of the FY13 revised target of 5.2%.

The good news for the country is that the overall interest rate regime is expected to soften in FY14. Reputed bankers have indicated that they expect a drop of more than 1% during FY14. Sectors which advertise – BFI, Auto, Real Estate, Durables, Mobile handsets, etc. – depend strongly on the ability of their buyers to get cheap loans. If that happens, the economy should get a boost; and the advertising industry too.

The government has also taken measures to tackle the current account deficit. It has levied additional taxes on gold, which has become a very large part of India’s imports. Further, the good news is that there is a slump in commodity prices worldwide, including in petroleum, and this should significantly ease the current account deficit, strengthen the rupee, reduce raw material costs for industries that import and improve their operational margins.

Overall, the macro-economic environment appears to be improving and is expected to get better in FY14. Further, after more than a year of slow policy making, the government appears to have got back on its feet. This should lift the advertising industry growth rates in FY14.

Global Advertising Spends to Strengthen

With advertising spends closely linked to the health of the economy, any uptick in the economy has a positive impact on advertising. The opposite is also true, which is why the advertising industry has generally witnessed slow growth over the last few years.

According to Zenith Optimedia’s Advertising Expenditure Forecasts – April 2013, the global ad expenditure growth will strengthen over the next 3 years, rising from 3.5% in 2012 to 3.9% in 2013, 4.9% in 2014 and 5.6% in 2015. The agency puts the ad spends in 2013 at US$ 518 billion. Further the agency forecasts that the growth will be led by emerging markets in Asia, Eastern Europe and Latin America. Advertising growth in “Fast Track Asia” – a bloc of which India is a part – is forecast to be 10.3% in 2013 over the previous year.

Indian Advertising Industry expects a better 2013

The slowdown in the economy’s growth to 5.5% in 2012 affected the Indian Advertising industry as companies affected by the slowdown cut advertising spends. But with the economy expected to get back on the growth track, the outlook is brighter. As per FICCI KPMG’s Indian Media and Entertainment Industry Report 2013, the advertising industry which grew by 9.1% in 2012 is expected to grow by 10% in 2013 and 11.2% in 2014. The 5-year forecast is even stronger with a CAGR of 14% till 2017.

The Indian Radio Industry – will outgrow traditional Media

Like in 2012, the FM radio industry is expected to outpace the growth of the overall advertising industry in the coming years. This higher growth is expected on the back of the Phase 3 policy of radio expansion. Phase 3 provides an immense opportunity for the Company to expand its footprint across the country. With a forecasted CAGR of 16.6% till 2017 as per KPMG’s FICCI report – industry revenues are expected to more than double by 2017.

The Phase 3 policy – which entails major expansion in the sector – was announced in July 2011. Since then, for various reasons, the policy’s implementation has got delayed. It appears now that the last of the obstacles have been cleared.

The Finance Minister announced the roll out of the policy in his budget speech on 28th February 2013, an unusual gesture considering that no Finance Minister had announced the earlier two phases of radio expansion. Thereafter, the EGoM (Empowered Group of Ministers) chaired by the Finance Minister also cleared all pending issues with respect to the policy in its meeting held on 6th March 2013. Finally, the Cabinet, in its meeting held on 1st May, 2013 ratified the decisions of the EGoM, paving the way for the roll out of the much-delayed Phase 3 policy. If everything goes to plan, it is their expectation that the auctions should commence before FY14 is over.

Phase 3 roll outs are vital for the FM radio industry’s growth. Radio can only expand when spectrum is released by the Government through the process of auctions. The last auctions were held in Jan 2006. Since then, there have not been any more auctions held. In the meantime, the other segments of the media industry have all grown by leaps and bounds. More and more TV channels continue to get launched every year and today there are 750+ channels available.

Newspaper groups have launched several new editions of existing titles as well as new titles across the country. With more transport infrastructure projects (airports, highways, etc.) getting completed, the Out Of Home (OOH) industry has also got a boost. And of course, the internet knows no bounds. In the midst of all these fast growing alternatives to advertisers, the radio industry has been feeling the squeeze. It has had to rely on increasing the utilization of available advertising inventory, but now with inventories almost fully exhausted, the only way left to grow further is to have more channels. Phase 3 will provide the requisite growth impetus.

The Phase 3 policy is ambitious. It aims to expand private FM radio services to 227 more cities, taking the total to more than 313. About 839 new FM radio channels will be auctioned and, after the auctions are completed, all cities having a population 1 lac and more will be covered by private FM radio services. The policy also has other far reaching features including giving broadcasters the right to operate more than one channel in each city (thus allowing for more programming variety, the ability to target a different set of listeners and rapidly grow revenues), networking of small cities with big ones (thus helping cut operating costs), extending the license period to 15 years (thus reducing vulnerability to economic slowdowns) and others.

RADIO INDUSTRY – FUTURE OUTLOOK, OPPORTUNITIES AND THREATS

Phase 3 policy of FM radio expansion:

As mentioned earlier, the biggest growth opportunity for the FM radio sector is the Phase 3 policy of FM radio expansion. Auctions for new licenses and new cities are expected to commence before the end of FY14. New stations should be operational within a year from the auctions getting completed.

The salient features of the Phase 3 policy are:

a. Multiple Frequencies

b. License Period

c. Tradability of Licenses

d. Networking

e. News and Current Affairs allowed

a. Multiple frequencies: The current policy allows a broadcaster to operate only one channel in a market. However, no such restriction is imposed on TV, newspaper or internet companies. The Phase 3 policy amends this, and allows broadcasters to operate upto 40% of the licenses available in a city, subject to a minimum of three different broadcasters being present in the city. This amendment provides an opportunity to existing broadcasters to acquire new frequencies and expand. It also allows existing broadcasters the opportunity to divest their stakes and sell their businesses to other broadcasters operating in the same town. This provision will thus increase the possibility of mergers and acquisitions in the future.

For the Company, expanding within the big cities is a priority. ENIL expects to take advantage of this policy measure.

b. License Period: The license period of Phase 3 frequencies has been increased to 15 years, compared to 10 years for the present licenses. This is a good change for several reasons. First, as the experience of the last four years has shown, the advertising industry is vulnerable to sudden deceleration of the economy. In a ten year license, it is extremely difficult to recover from such downturns and recoup the losses. Second, the certainty of a longer license period will allow broadcasters to invest more in brand building, and take risks with experimentative programming content. This should help provide more content diversity to the market and grow it faster. Third, the entire process of renewals creates uncertainty and anxiety, and the less often it is done, the better it is. ENIL welcomes this policy initiative.

c. Tradability of licenses: The current policy allows a broadcaster to sell off its stake in a radio company only after five years of operationalization. The Phase 3 policy reduces this period to three years. Even though it helps radio broadcasters, it is still not entirely fair considering that no such restrictions exist in any other media segment. ENIL welcomes this measure, as it will (along with the allowance for operating multiple frequencies) help early consolidation in the fragmented radio industry. Consolidation in turn will trigger improvements in content, enhance investments in brand building, encourage launch of new programs, etc.

d. Networking: Most of the small towns with population less than 1 lac would be financially unviable if they were to operate as full-service stations. The revenue potential in these towns is small, and hence managing costs is key to financial viability. Networking would allow small stations to take content from other bigger stations with a similar language/ programming mix, thus reducing their cost of operation. The proposed networking clause is more liberal than the current one which allows networking only between category C and D stations. The Phase 3 policy allows networking across all categories of towns. There is only a provision for a certain minimum locally produced content to be met. ENIL welcomes this measure.

e. News and current affairs: The current policy does not allow radio broadcasters to conduct news and current affairs programs. This is a blatantly unfair and discriminatory restriction, since no other medium is subject to such restrictions. The Phase 3 policy makes a minor concession on this. Radio broadcasters will be allowed to do news and current affairs shows, but they will have to source the news content only from All India Radio (AIR). The industry believes this is highly restrictive, and hopes that future policy announcements will remove this restriction. ENIL welcomes this policy measure guardedly, and hopes that all restrictions will be removed soon.

RENEWAL OF PHASE 2 LICENSES:

They expect that after Phase 3 auctions are completed, the government will start the process of renewing the current Phase 2 licenses. Since many licenses will start expiring from April 2015 onwards, the next two years are crucial for the renewal process. The government has however given indications that it would want existing broadcasters to continue after their current license term expires. Clarity on the process of renewals is awaited.

COPYRIGHT AMENDMENT ACT 2012 – AN UPDATE:

The amendments to the original Copyright Act of 1957 were passed by both Houses of Parliament in May 2012. The Copyright (Amendment) Rules 2013, which prescribe rules for statutory license were notified on March 14, 2013. As on date the Copyright Board has not been constituted. The provision of Statutory License has a significant impact on the operations of a radio company as it ensures unfettered access to music at rates fixed by a statutory authority.

Super Cassettes Industries Limited (“T Series”) has filed a writ petition before the Delhi High Court challenging the constitutional validity of the provisions of statutory licensing as described above. Similar challenge has been made by Venus Worldwide Entertainment Private Limited (a member of Phonographic Performance Limited) before the Delhi High Court. ENIL shall take all such steps that are necessary to protect itself from anything that directly and substantially affect’s ENIL’s rights under the statutory licensing mechanism.

FORAY INTO DIGITAL MEDIA:

Internet penetration is growing rapidly in India. There are about 150 million users today, and this number is expected to grow to 500 million in 5 years. Most internet users access the net through their mobile phones (smart phones as well as old generation feature phones). Most internet users have access only to slow internet bandwidth today; though with the rapidly falling cost of bandwidth, this situation may change drastically in the next few years.

Media companies are already seeing their consumers move online, adding to their regular media consumption. Worldwide experience shows that savvy media brands are able to grow their audience size by making themselves available online. In the case of radio, there is however a unique problem. Online music royalties are prohibitively high reminiscent of the early days of FM radio when music royalties were exorbitantly priced. The Copyright Board (CRB) brought relief to FM broadcasters. It will have to rationalize online music royalties as well.

As in all online media businesses, there are only very limited advertising opportunities available for online radio streaming as well. Maintaining an online presence is thus an unviable proposition today. Equally, the cost of not reacting to this medium could be even higher. New competitors could start reaching out to their advertisers with more targeted offerings, and even take away their listeners by offering them greater variety of content. Keeping this in mind, ENIL has embarked on an ambitious project to develop its digital business.

ENIL’S ONLINE PRESENCE:

· They have one of India’s most popular radio websites. They offer a variety of content like

a) four specially created streaming stations with a plan to increase this number to 10 in the next few months

b) non-music audio content like Mirchi Murga

c) interaction with RJs

d) videos of film stars visiting their studios

e) consumer contests, etc.

· Their four streaming stations offer a wide choice of music formats. The most popular is “Meethi Mirchi” (contemporary Hindi melodies) followed by “Purani Jeans” (60s to 80s Hindi retro), “Club Mirchi” (Hindi Dance) and “Mirchi Edge” (non-Bollywood or Indipop).

· They have a strong presence on social networking sites. They have 1 million “fans” on Facebook. This helps them “connect” with online users, get “feedback” on the brand and also “talk” to them about their new plans. In addition, they also have a YouTube channel of their own (total views upwards of 2.6 million till date) and a twitter handle (about 16000 followers).

FY 13 OPERATING PERFORMANCE:

The radio industry has turned in a good performance in FY13, considering the tough economic conditions that prevailed. In their estimation, the industry has grown by about 10% over the previous year. In comparison, estimates of growth of other media segments are 5-6% for newspapers, 5-6% for TV and 2-4% for Out of Home. There is a reason why the radio industry has performed so well. In times of economic slowdown, advertisers are forced to “re-evaluate” their media mixes. In this process, a relatively new medium like radio (and also the internet) gets evaluated even by those advertisers who weren’t using radio earlier. Since radio’s listenership numbers are impressive, the medium manages to enter the media plans of a lot of new advertisers. There is yet another reason. Advertisers typically spend more on “promotions” during periods of slowdown. Such campaigns work best on radio for several reasons. One, because radio is the “last” medium consumed before he or she walks into a shop. Second, radio creatives are easy to make and change, thus giving flexibility to the advertiser to change his message. Third, radio’s reach is huge; and far higher than the reach of newspapers. For example, in Mumbai, as per RAM, Radio Mirchi reaches upwards of 50 lac people every week. These are all consumers that advertisers are keen to reach. And lastly, the outlays required for an effective radio campaign are typically smaller than those required for a newspaper or outdoors campaign. For all these reasons, radio has done better than other segments in FY13. They believe the same trend will continue in FY14 as well.

It’s a matter of pride that ENIL has fared better than the radio industry. ENIL’s operating revenues (not including other income) have grown by 12.3% during FY13, reaching Rs. 3384.000 Millions. ENIL’s profitability has been strong with PAT growing by 19.8% to Rs. 677.000 Millions. ENIL has Rs. 3225.000 Millions of free cash and cash equivalents in its books. It generated Rs. 1001.000 Millions of cash flow during FY13. The Company is well resourced to participate in Phase 3 bidding. ENIL’s strong revenue performance has helped its revenue market share grow to 33-35% of the private FM industry. Considering the consistent good performance of the Company year-on-year and the strong cash position as on date, the Board of Directors have recommended a maiden dividend of 10% i.e. Rs. 1/- per equity share of Rs. 10/-.

THE MIRCHI MUSIC AWARDS – BETTER AND BIGGER EVERY YEAR:

The Mirchi Music Awards (MMAs) now span virtually all the major languages. Apart from the flagship Hindi, MMAs are held in the 4 South Indian Languages, Bangla and, for the first time this year, were held in Marathi as well.

The 5th edition of the Hindi Mirchi Music Awards had the who’s who of the music and film fraternity in attendance. The winners were decided by an all star jury – Javed Akhtar (Chairman), Ramesh Sippy, Ashutosh Gowariker, Kailash Kher, Shankar Mahadevan, Sooraj Barjatya, Prasoon Joshi, Sameer, Anu Malik, Aadesh Srivastava, Alka Yagnik, Lalit Pandit, Louis Banks, Rakeysh Omprakash Mehra, Kavita Krishnamurthy, Sadhna Sargam, Suresh Wadkar, Talat Aziz and Ila Arun. The jury process also comprises the important work undertaken by the Screening jury which went through more than 800 songs that the film industry produced in 2012. The Screening jury was made up of Akbar Sami, Shibani Kashyap, Bishwadeep Chatterjee, Jitu Shankar, Kavita Seth, Raju Singh, Shmair Tandon, Teesha Nigam, Dominique Cerejo, Anand Sharma, Niranjan Iyengar, Javed Ali, Abhijeet Sawant, Dr. Arindam Mukhopadhyay, Vidya Shah, Dr. Sujit Kumar Ojha.

TV viewers gave the televised show their vote of approval. The TVR of the main show was 2.1, which is a 60% improvement over last year’s number. But more than the TVR, what was satisfying was the support and presence of almost the entire music fraternity. After all, these awards are our tribute to their outstanding work. Like they say “Music ko Mirchi ka salaam” (Mirchi’s salute to music). Mr. Amitabh Bachchan was recognized with the “Super star with a golden voice” award and Ms. Asha Bhosle was honored with the Life Time Achievement Award.

The Mirchi Music Awards (Marathi) were held for the first time this year. They received an overwhelming response from the Marathi film and music fraternity and audience. The jury was chaired by Suresh Wadkar and the Head of the jury was Ashok Patki.

The Mirchi Music Awards (South) completed their 3rd edition in July 2012. Like in Hindi and Marathi, the support of the film and music industry in all the Southern languages is a matter of great pride for them. They are the only pan-South music award show. Mr. Gangai Amaren (Tamil), Mr. Hamsalekha (Kannada), Mr. Suresh Babu (Telugu) and Mr. Kaithapram Damodaran Namboothiri (Malayalam) were the jury Chairmen for these awards.

The Mirchi Music Awards (Bangla) completed their second edition in March this year. Like everywhere else, the show had an outstanding success.

AWARDS AND RECOGNITION

· Radio Mirchi UAE voted the Best Radio Station

In less than a year from its launch, Radio Mirchi UAE was voted the best Radio Station in the Popular Choice category in 5th Annual Masala Awards. The award demonstrates the power of the Mirchi brand and the loyal audience that it has built there in a short period of time.

· World Brand Congress – Popular Radio Channel of the Year

World Brand Congress honors the world’s branding and marketing elite at the Global Awards for Brand Excellence. Radio Mirchi won the Popular Radio Channel of the Year Award in the radio category.

· Annual Report 2011-2012 wins Midas Award

Midas recognizes the best of financial advertising. Founded in 2001 and based out of New York, the jury includes creative and art directors from all over the world. Their FY 2011-12 Annual Report “Reimagining Radio” won the gold for innovative design and layout. Reimagining Radio captures the essence of the shift from traditional to a new age media company

.

· Designomics Awards

The FY12 annual report was also the first runner up in the Designomics Awards.

· Accolades from Ad Club Bangalore

Purani jeans is the retro songs show on Radio Mirchi that goes on air from 9pm on weeknights. In this show, old Hindi songs are played. For promoting this show, an innovative clock that ran anti-clockwise was created so as to evoke the feeling of taking you back in time. This direct mailer won the bronze at the Ad Club of Bangalore’s award function.

MIRCHI SWEEPS THE IRF AWARDS

Mirchi won twelve awards at the Excellence in Radio Awards (ERA) at the India Radio Forum (IRF) this year – the most won by any radio broadcaster. Mirchi won four awards in the Programming Category for Best Radio Program (Bengali, Gujarati, Kannada and Marathi). In the Promotion and Marketing Category, Radio Mirchi got three awards in Telugu, Bengali and Marathi. Additionally, Mirchi was also awarded the Radio Station Imaging Innovation for its 9th Birthday campaign, Best Interactive Campaign, Best Creative Campaign for Radio films by Mirchi productions, and Best Use of Radio in an Ad Campaign for “Top Indian cricketers” quiz. The station also won the Best use of Radio in Activation Campaign award for Ponds “Let’s Pink” campaign. The award for Best Radio Program (Hindi) for non-metro station also went to Mirchi for its ‘Janmashtami Special’ campaign in Bhopal. Bezawada Basha won the Best RJ of the Year (Telugu).

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS PERIOD ENDED DECEMBER 31, 2013

(RS. IN MILLIONS)

Sr. No.	Particular	3 Months ended 31.12.2013	3 Months ended 30.09.2013	9 Months ended 31.12.2013
1.	Income from Operations
	a. Net Sales / Income from Operations (Net of Excise and Discounts)	982.138	855.096	2685.689
	b. Other Operating Income	3.051	10.356	17.327
	Total Income (a+b)	985.189	865.452	2703.016
2.	Expenditure
	a) Production Expenses	43.943	40.619	122.780
	b) License Fees	52.209	46.506	145.598
	c) Employees benefit expense	185.058	185.525	560.527
	d) Depreciation & amortisation expense	80.875	79.672	238.579
	e) Marketing Expenses	138.500	170.875	415.423
	f) Other Expenditure	183.270	169.168	524.762
	h) Total Expenditure	683.855	692.365	2007.669
3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	301.334	173.087	695.347
4.	Other Income	56.407	55.021	163.986
5.	Profit Before Interest and Exceptional Items (3+4)	357.741	228.108	859.333
6.	Interest	0.053	0.046	0.159
7.	Profit After Interest but before Exceptional Items (5-6)	357.688	228.062	859.174
8.	Exceptional Items	0.000	0.000	0.000
9.	Profit from Ordinary Activities before Tax (7+8)	357.688	228.062	859.174
10.	Tax Expense	98.934	63.950	237.123
11.	Net Profit from Ordinary Activities after Tax (9-10)	258.754	164.112	622.051
12.	Extraordinary Item (net of expense)	0.000	0.000	0.000
13.	Net Profit / (Loss) for the period before minority interest (11+12)	258.754	164.112	622.051
14.	Minority Interest Profit / (Loss)	0.000	0.000	0.000
15.	Net Profit / (Loss) after taxes, minority interest (13-14)	258.754	164.112	622.051
16.	Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	476.704	476.704	476.704
17.	Reserves Excluding Revaluation Reserve	0.000	0.000	0.000
18.	Basic and Diluted Earnings Per Share (EPS) (Rs.)-Not Annualised
	a) Basic	5.43	3.44	13.05
	b) Diluted	5.43	3.44	13.05
PART II: SELECT INFORMATION FOR THE QUARTER AND NINE MONTHS PERIOD ENDED DECEMBER 31, 2013
1.	Public Shareholding
	-Number of Shares	13752015	13752015	13752015
	- Percentage of Shareholding	28.85%	28.85%	28.85%
2.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	--	--	--
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	--	--	--
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	--	--	--
	b) Non Encumbered
	- Number of Shares	33918400	33918400	33918400
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100.00%	100.00%	100.00%
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	71.15%	71.15%	71.15%

	Particulars	3 Months ended 31.12.2013
B	Investor complaints (Nos.)
	Pending at the beginning of the quarter	Nil
	Received during the quarter	3
	Disposed of during the quarter	3
	Remaining unresolved at the end of the quarter	Nil

NOTES:

1) The Company is engaged in only one segment i.e. Radio Broadcasting Business. Consequently, there is no other reportable segment. The Company caters to the needs of the domestic market and hence there are no reportable geographical segments.

2) The consolidated results include results of the Company's subsidiary Alternate Brand Solutions (India) Limited (ABSL) which is consolidated in accordance with Accounting Standard 21.

3) The above results were reviewed by the Audit Committee and were thereafter approved by the Board of Directors at their meeting held on February 10, 2014. The above standalone financial results for the quarter ended December 31, 2013 have been subject to a "Limited Review" by the statutory auditors of the Company, as per the listing agreement entered into with the stock exchanges in India. The consolidated results for the quarter and nine months ended December 31, 2013 were not subject to limited review of the statutory auditors.

4) Tax expense for the year ended March 31, 2013 was net of Rs. 28.660 Millions of excess provision in respect of earlier years and written back pursuant to conclusion of assessment.

5) Previous period / year figures have been reclassified to conform with current period / year presentation, where applicable.

FIXED ASSETS:

Tangible Assets

· Land – Leasehold

· Building

· Leasehold Improvements

· Office Equipments

· Computers

· Furniture and Fixtures

· Motor Vehicles

Intangible Assets

· Goodwill

· Computer Softwares

· Migration Fees

· One Time Entry Fees

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

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 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. 62.16
UK Pound	1	Rs. 103.44
Euro	1	Rs. 85.27

INFORMATION DETAILS

Information Gathered by :	NYA
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
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	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		62

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	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.