MIRA INFORM REPORT

Report Date :

29.01.2014

IDENTIFICATION DETAILS

Name :	SUN TV NETWORK LIMITED
Registered Office :	Murasoli Maran Towers, 73, MRC Nagar Main Road, MRC Nagar, Chennai – 600028, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	18.12.1985
Com. Reg. No.:	012491
Capital Investment / Paid-up Capital :	Rs.1970.423 Millions
CIN No.: [Company Identification No.]	L22110TN1985PLC012491
Legal Form :	Public limited liability company. Company’s shares are listed on the Stock Exchange.
Line of Business :	The Company is Engaged in Producing and Broadcasting Satellite Television and Radio Software Programming in The Regional Languages of South India.
No. of Employees :	1916 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (65)

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 116000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well-established company having fine track record. Financial position of the company appears to be strong. Over all fundamentals of the company appears to be sound and healthy. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments terms 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.

ECGC Country Risk Classification List – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

India was ranked 94^th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

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.

LOCATIONS

Registered Office :	Murasoli Maran Towers, 73, MRC Nagar Main Road, MRC Nagar, Chennai – 600028, Tamilnadu, India
Tel. No.:	91-44-44676767
Fax No.:	91-44-40676161
E-Mail :	brr@sunnetwork.in
Website :	www.suntv.in

DIRECTORS

AS ON 27.09.2013

Name :	Mr. K. Vijaykumar
Designation :	Managing Director & Chief Executive Officer

Name :	Mr. Kalanithi Maran
Designation :	Executive Chairman

Name :	Mr. S. Selvam
Designation :	Director

Name :	Mr. Kavery Kalanithi
Designation :	Executive Director

Name :	Mr. J. Ravindran
Designation :	Independent Director

Name :	Mr. M.K. Harinarayanan
Designation :	Independent Director

Name :	Mr. Nicholas Martin Paul
Designation :	Independent Director

Name :	Mr. R. Ravivenkatesh
Designation :	Independent Director

KEY EXECUTIVES

Name :	Mr. R. Ravi
Designation :	Company Secretary and Compliance Officer
Address :	Murasoli Maran Towers 73, MRC Nagar Main Road MRC Nagar, Chennai – 600 028, Tamilnadu, India
Tel.:	91 44 4467 6767
Fax No.:	91 44 4067 6161
Email:	ravi@sunnetwork.in
Name :	Mr. C. Praveen
Designation :	Chief Operating Officer
Name :	Mr. S. Kannan
Designation :	Chief Technical Officer

AUDIT COMMITTEE

Name :	Mr. J. Ravindran
Designation :	Chairman
Name :	Mr. M.K. Harinarayanan
Designation :	Chairman
Name :	Mr. Nicholas Martin Paul
Designation :	Chairman
Name :	Mr. R. Ravivenkatesh
Designation :	Chairman

REMUNERATION COMMITTEE

Name :	Mr. J. Ravindran
Designation :	Chairman
Name :	Mr. M.K. Harinarayanan
Designation :	Chairman
Name :	Mr. Nicholas Martin Paul
Designation :	Chairman
Name :	Mr. R. Ravivenkatesh
Designation :	Chairman

INVESTOR / SHAREHOLDER'S GRIEVANCE COMMITTEE

Name :	Mr. J. Ravindran
Designation :	Chairman
Name :	Mr. M.K. Harinarayanan
Designation :	Chairman
Name :	Mr. Nicholas Martin Paul
Designation :	Chairman
Name :	Mr. R. Ravivenkatesh
Designation :	Chairman

SHARE TRANSFER AND TRANSMISSION COMMITTEE

Name :	Mr. Kalanithi Maran
Designation :	Chairman
Name :	Mr. Kavery Kalanithi
Designation :	Chairman

CORPORATE MANAGEMENT TEAM

Name :	Mr. Kalanithi Maran
Designation :	Executive Chairman
Name :	Mr. K. Vijaykumar
Designation :	Managing Director & Chief Executive Officer
Name :	Mr. V. C. Unnikrishnan
Designation :	Chief Financial Officer
Name :	Mr. Kavery Kalanithi
Designation :	Executive Director
Name :	Mr. C. Praveen
Designation :	Chief Operating Officer
Name :	Mr. S. Kannan
Designation :	Chief Technical Officer
Name :	Mr. R. Ravi Company
Designation :	Secretary and Compliance Officer

SHAREHOLDING PATTERN

AS ON 31.12.2013

Shareholding Pattern

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	295563457	75.00
Sub Total	295563457	75.00
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	295563457	75.00
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	7765992	1.97
Financial Institutions / Banks	58265	0.01
Insurance Companies	325000	0.08
Foreign Institutional Investors	60957955	15.47
Sub Total	69107212	17.54
(2) Non-Institutions
Bodies Corporate	7374120	1.87
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	3898328	0.99
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	17140226	4.35
Any Others (Specify)	1001277	0.25
Clearing Members	115428	0.03
Non Resident Indians	885849	0.22
Sub Total	29413951	7.46
Total Public shareholding (B)	98521163	25.00
Total (A)+(B)	394084620	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	394084620	0.00

BUSINESS DETAILS

Line of Business :	The Company is Engaged in Producing and Broadcasting Satellite Television and Radio Software Programming in The Regional Languages of South India.
Brand Names :	“Sun TV”

GENERAL INFORMATION

No. of Employees :	1916 (Approximately)
Bankers :	· Andhra Bank · Axis Bank · City Union Bank · Corporation Bank · HDFC Bank · ICICI Bank · Indian Bank · Indian Overseas Bank · Karur Vysya Bank · Kotak Mahindra Bank · Royal Bank of Scotland · Standard Chartered Bank · State Bank of India · Yes Bank

Banking Relations :	---
Auditors :
Name :	S.R. Batliboi and Associates LLP Chartered Accountants
Address :	6th and 7th Floor - 'A' Block, (Module 601,701,702) , Tidal Park, No. 4, Rajiv Gandhi Salai, Taramani, Chennai - 600 113, Tamilnadu, India
Enterprises in which Key Management personnel or their relatives have significant influence :	· Kal Publications Private Limited · Sun Foundation · Spicejet Limited · Murasoli Maran Family Trust · Udaya FM Private Limited · S & S Textiles · Sun Direct TV Private Limited · D.K. Enterprises Private Limited · Kungumam Publications Private Limited · Kungumam Nithyagam Private Limited · Sun Distribution Services Private Limited (Formerly Sun 18 Media Services South Private Limited) · Kal Comm Private Limited · Kal Media Services Private Limited · Kal Investments (Madras) Private Limited · Kal Cables Private Limited · Kal Airways Private Limited · Sun Business Solutions Private Limited · Kal Holdings Private Limited
Subsidiary Companies :	· South Asia FM Limited · Kal Radio Limited · Sun TV Network Europe Limited (upto May 07, 2012)
Associates :	· AV Digital Networks (Hyderabad) Private Limited · Asia Radio Broadcast Private Limited · Digital Radio (Kolkata) Broadcasting Limited · Metro Digital Networks (Hyderabad) Private Limited · Optimum Media Services Private Limited · Digital Radio (Mumbai) Broadcasting Limited · Deccan Digital Networks (Hyderabad) Private Limited · Pioneer Radio Training Services Private Limited · Digital Radio (Delhi) Broadcasting Limited · South Asia Multimedia Private Limited ·

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
450,000,000	Equity Shares	Rs 5/- each	Rs. 2250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
394,084,620	Equity Shares	Rs 5/- each	Rs. 1970.423 Millions

Reconciliation of the Equity shares outstanding at the beginning and at the end of the reporting period

	number of shares	31.03.2013 Rs. In Millions
At the beginning of the year	394084620	Rs.1970.400 Millions
Issued during the year	Nil	Nil

Rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 5 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31, 2013, the amount of per share dividend recognized as distributions to equity shareholders was Rs. 9.50/ share (March 31, 2012: Rs. 9.50/ share). In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date:

	31.03.2013	31.03.2012
Equity shares allotted as fully paid-up pursuant towards purchase consideration on amalgamation	59264000	59264000

29,632,000 shares were originally issued at Rs. 10 per share as fully paid towards purchase consideration to the shareholders of Udaya TV Private Limited and the erstwhile Gemini TV Private Limited, pursuant to their amalgamation with Sun TV Network Limited, these shares were subsequently sub-divided into 59,264,000 shares of Rs. 5/- each.

Details of shareholders holding more than 5% shares in the company on March 31, 2013

Equity shares of Rs. 5.00 each fully paid
	number of shares	Percentage holding
Mr. Kalanithi Maran	303445157	77.0%

As per of the company, including its register of shareholders / members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

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	1970.400	1970.400	1970.400
(b) Reserves & Surplus	26958.100	24482.000	21886.700
(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)	28928.500	26452.400	23857.100
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	284.400	337.700	409.800
(c) Other long term liabilities	41.700	43.800	113.700
(d) long-term provisions	17.200	13.500	13.100
Total Non-current Liabilities (3)	343.300	395.000	536.600
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	296.200	295.800	405.200
(c) Other current liabilities	1514.100	1437.200	1951.800
(d) Short-term provisions	936.300	350.500	1721.600
Total Current Liabilities (4)	2746.600	2083.500	4078.600
TOTAL	32018.400	28930.900	28472.300
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	8232.300	7705.700	7940.100
(ii) Intangible Assets	3992.500	2924.900	2908.900
(iii) Capital work-in-progress	4.200	11.300	78.700
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	4623.800	4623.800	4683.600
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	3843.200	4777.200	1421.500
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	20696.000	20042.900	17032.800
(2) Current assets
(a) Current investments	54.600	151.600	728.100
(b) Inventories	5.000	3.500	7.500
(c) Trade receivables	5353.000	4649.100	3880.500
(d) Cash and cash equivalents	3886.300	2899.100	5844.000
(e) Short-term loans and advances	1255.100	504.300	228.500
(f) Other current assets	768.400	680.400	750.900
Total Current Assets	11322.400	8888.000	11439.500
TOTAL	32018.400	28930.900	28472.300

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	18176.200	17573.700	19237.100
		Other Income	195.300	188.700	467.900
		TOTAL	18371.500	17762.400	19705.000
Less	EXPENSES
		Cost of revenue	1551.600	1006.500	1027.100
		Employee benefit expense	1771.100	1640.600	1740.100
		Other Expenses	1037.900	859.100	799.800
		Advertising and Marketing Expenses	46.700	60.800	91.200
		TOTAL	4407.300	3567.000	3658.200
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		13964.200	14195.400	16046.800
Less	FINANCIAL EXPENSES INTEREST AND DIVIDEND INCOME		(307.000)	(497.800)	19.800
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		14271.200	14693.200	16027.000
Less/ Add	DEPRECIATION/ AMORTISATION		4131.800	4430.00	4473.800
	PROFIT BEFORE TAX		10139.4	10263.200	11553.200
Less	TAX		3306.000	3316.700	3831.000
	PROFIT AFTER TAX		6833.400	6946.500	7722.200
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		16326.100	14425.500	11490.700
Less	APPROPRIATIONS
		Transfer to General Reserve	683.300	694.700	772.200
		Interim Dividend	295.570	344.820	197.040
		Tax on Interim dividend	47.950	55.940	32.730
		Proposed Dividend	788.200	295.600	1477.800
		Tax on Proposed dividend	133.900	48.000	239.700
	BALANCE CARRIED TO THE B/S		18118.900	16326.100	14425.500
	EARNINGS IN FOREIGN CURRENCY
		Program licensing income	1031.000	843.000	690.000
		Advertisement income	10.900	8.700	0.000
		Income from sale and aircraft	1897.500	0.000	0.000
	TOTAL EARNINGS		2939.400	851.700	690.000
	IMPORTS
		Capital Goods	3700.300	357.000	1028.200
		Others	0.800	1.600	2.500
	TOTAL IMPORTS		3701.100	358.600	1030.700
	Earnings Per Share (Rs.5/-)		17.34	17.63	19.60

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	37.19	39.11	39.18
Net Profit Margin (PBT/Sales)	(%)	55.78	58.40	60.05
Return on Total Assets (PBT/Total Assets}	(%)	37.02	51.33	48.73
Return on Investment (ROI) (PBT/Networth)		0.35	0.38	0.48
Current Ratio (Current Asset/Current Liability)		4.12	4.26	2.80

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	No
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	----
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

Case Staus :	Pending
Status No.:
Case No.:	15340
Year :	2011
Petitioner :	M/S. Moser Baer Entertainment
Respondent :	M/S. Sun TV Network Limited
Pet’s Advocate :	M/S. K. Manoj Menon
Res’s Advocate :
Category :	Petition under Section 482 Cr.PC
Last Listed on	No Date Mentioned.
Case Update on :	16.07.2013

Connected Application(s) No Connected Matter(s)

Application Type	Application Number	Application Number
MP	2	2011

CONTINGENT LIABILITIES

PARTICULARS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
Income Tax	2039.800	1488.600
Customs Duty	615.800	5.000
Total	2655.600	1493.600

The Company received demands of income tax in respect of earlier years, disallowing the manner of allowance claimed by the Company for certain expenses. The Company’s appeal in respect of various years has been allowed by the appellate authority in the current year. Accordingly, management believes that based on the favorable judgment as well as relying on judicial pronouncements and other arguments, its position is likely to be accepted by the revenue authorities.

The Company has received demand for differential customs duty aggregating to Rs. 5.0 million on account of incorrect classification of certain assets imported during FY 2007-08. The Company has gone on appeal against the said demand, and based on its arguments at such appellate proceedings, management believes that the Company’s claim is likely to be accepted by the authorities.

In response to enquiries by the Customs Authorities on certain customs duty exemptions availed by the Company in the previous years, the Company has deposited a sum of Rs. 610.8 million under protest in the current year, pending final resolution of the matter. The Management is advised by Senior Counsels that appropriate legal remedies are available and accordingly is confident of recovering the same.

STATEMENTS OF UNAUDITED FIANACIAL RESULTS FOR THE QUARTER ENDED 30.09.2013

(Rs. In Millions)

Sr. No.	Particular	Quarter Ended		Year Ended
		30.09.2013 Unaudited	30.06.2013 Unaudited	30.09.2013 Unaudited
1.	Net Sales/Income from Operations	4664.100	6018.500	10682.600
	Other Operating Income	0.000	0.000	0.000
	Total Income From Operations (Net)	4664.100	6018.500	10682.600
2.	Expenditure
	Cost of Revenue	439.500	450.000	889.500
	IPL Franchise Fees	0.000	850.500	850.500
	Changes in inventories of finished goods, work in progress and stock in trade	0.000	0.000	0.000
	Employee benefits expenses	482.700	442.100	924.800
	Depreciation and amortization expenses	1175.600	1173.900	2349.500
	Other expenses	365.100	739.400	1104.500
	Total Expenses	2462.900	3655.900	6118.800
3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	2201.200	2362.600	4563.800
4.	Other Income	378.000	133.900	511.900
5.	Profit Before Interest and Exceptional Items (3+4)	2579.200	2496.500	5075.700
6.	Finance Cost	9.000	7.100	16.100
7.	Profit from Ordinary Activities before Tax (5-6)	2570.200	2489.400	5059.600
8.	Tax Expense	878.600	845.000	1723.600
9.	Net Profit from Ordinary Activities after Tax (7-8)	1691.600	1644.400	3336.000
10.	Paid-up Equity Share Capital (Face Value of Rs.5/- Each)	1970.400	1970.400	1970.400
11.	Reserves Excluding Revaluation Reserve	---	--	--
12.	Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised	4.29	4.17	8.47
13.	Public Shareholding
	-Number of Shares	98521163	98521163	98521163
	- Percentage of Shareholding	25.00	25.00	25.00
14.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	18473412	18473412	18473412
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	6.25	6.25	6.25
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	4.69	4.69	4.69
	b) Non Encumbered
	- Number of Shares	277090045	277090045	277090045
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	93.75	93.75	93.75
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	70.31	70.31	70.31

INFORMATION FOR THE QUARTER ENDED 30.09.2013

PARTICULARS	3 Months Ended 30.09.2013
INVESTOR COMPLAINTS
Pending at the beginning of the quarter	Nil
Received during the quarter	6
Disposed of during the quarter	6
Remaining Unresolved at the end of the quarter	Nil

STATEMENTS ASSETS AND LIABILITIES

(Rs. In Millions)

PARTICULARS	30.09.2013 UNAUDITED
EQUITY AND LIABILITIES
Shareholders' funds
Share Capital	1970.400
Reserves & Surplus	29256.700
Sub total- Shareholders' funds	31227.100
Non-current liabilities
Other Long-term liabilities	41.000
Deferred tax liabilities (Net)	254.700
Long-term provisions	35.000
Sub total-Non-Current Liabilities	330.700
Current liabilities
Short term borrowings	0.000
Trade payables	524.500
Other current liabilities	1262.200
Short-term provisions	932.100
Sub total-Current Liabilities	2718.800
TOTAL EQUITY AND LIABILITIES	34276.600
ASSETS
Non-current assets
Fixed assets	12409.500
Non-current Investments	4623.800
Deferred tax assets (net)	0.000
Long-term Loan and Advances	2921.200
Other Non-current assets	0.000
Sub total-Non-Current Assets	19954.500
Current assets
Current Investment	1788.300
Inventories	7.400
Trade receivables	5584.00
Cash and cash equivalents	4980.800
Short-term loans and advances	851.200
Other current assets	1110.400
Sub total-Current Assets	14322.100
TOTAL- ASSETS	34276.600

BUSINESS OVERVIEW

Company, one of the largest Television Broadcasters in India operating Satellite Television Channels across four languages of Tamil, Telugu, Kannada and Malayalam and presently airing FM radio stations across India continues to have sustained and increased viewership of its channels. During the year your Company successfully bid for the Indian Premier League (IPL) Franchise offered by the Board of Control for Cricket in India (BCCI) and has been awarded the Hyderabad Franchise. The new team “Sun Risers Hyderabad” made a commendable debut and made it to the last four of the 2013 tournament.

SUBSIDIARY COMPANIES

The Company has two subsidiaries – Kal Radio Limited ('KRL') and South Asia FM Limited ('SAFML') both of which are incorporated in India. KRL was incorporated on October 7, 2005 as Kal Radio Private Limited and 97.8% (March 31, 2012 – 97.8%) of its paid up equity share capital is held by Sun TV. SAFML was incorporated on November 9, 2005 as South Asia FM Private Limited and as at the balance sheet date, the Company holds 59.15 % (March 31, 2012 – 59.15%) of its paid up equity share capital. KRL and SAFML are engaged in producing and broadcasting radio software programming in Indian regional languages. During the current year, the Company has disposed its interest in Sun TV Network Europe Limited (‘STNEL’) a Company incorporated in the United Kingdom which was a wholly owned subsidiary till the previous year. STNEL was engaged in the business of broadcasting and distribution of the Company’s channels in Europe. KRL, SAFML and STNEL are hereinafter collectively referred to as 'Subsidiaries’. Sun TV along with its Subsidiaries is hereinafter collectively referred to as 'the Group’. The Group currently operates television channels in four South Indian languages predominantly to viewers in India, and also to viewers in Sri Lanka, Singapore, Malaysia, United Kingdom, Europe, Middle East, United States, Australia, South Africa and Canada. The Group's flagship channel is Sun TV. The other major satellite channels of the Group are Surya TV, Gemini TV and Udaya TV. The Group is also into the business of FM Radio broadcasting at Chennai, Coimbatore and Tirunelveli. The Group’s film production/ distribution division ‘Sun Pictures’ undertakes production/ distribution of movies in Tamil language. During the current year, the Group has acquired license to operate an Indian Premier League (‘IPL’) franchise in the city of Hyderabad from the Board of Control for Cricket in India (‘BCCI’). KRL operates 18 Frequency Modulation ('FM’) stations in South India. SAFML operates 22 FM stations and has licenses to operate in 1 other location in the rest of India.

INDUSTRY

The Media and Entertainment Industry after a challenging year of 2012 looks much better going forward as some improvement likely in the global economy in 2013 and India’s real GDP expected to be in the region of 6.1% to 6.7% during the year. The impetus introduced by digitization, continued growth of regional media, upcoming elections, continued strength in the film sector and fast increasing new media businesses, the industry is estimated to achieve a growth above 11 percent in 2013. Every segment across the industry (television, radio, advertisement, films, print) is getting digitized in its own way and thereby leading to development of new media. Evolution of sophisticated digital production and post-production techniques, along with the factors such as entry of international corporate houses across the film value chain, growth of digital distribution and exhibition, primarily through increasing penetration of multiplexes are majorly influencing the sector in India. The Government's drive towards digitalization and addressability for cable television by 2014 is expected to provide a boost to direct-to-home (DTH) and digital cable growth. In a nutshell, alignment of entertainment, information and telecommunication is increasingly affecting India's overall M&E industry. Launch of more advanced media devices over the last decade has facilitated access of the same content on a variety of media platforms. This is helping in emergence of new business models and revenue streams, not only for content providers, but also for a variety of new players becoming a part of the new media ecosystem.

With all these factors well in place, the M&E sector certainly is marching towards new horizons of growth. Regional media continues on a strong growth trajectory especially in the print and television sectors. Key media players are focusing and expanding their presence in regional markets based on higher rates of advertising revenue growth, and better insulation from the slowdown. While television continues to be the dominant medium, related segments such as animation & VFX, digital advertising and gaming are fast increasing their share in the overall pie. Radio is expected to display a healthy growth rate after the advent of Phase 3. Print, while witnessing a decline in growth rate, will continue to be the second largest medium in the Indian M and E industry.

Sun TV Network Limited (Sun Network) maintains its dominant position in the southern states of India as one of the largest television and radio entertainment Company in India with a portfolio of Satellite Television Channels spread across four languages and in genres of GEC, news, music, action, life, movies, kids and comedy. Sun Network also has a large network pan India in the FM Radio broadcasting segment along with its subsidiaries. Sun Network continues to consolidate its leadership position, built over the years, by fortifying its hold over key aspects of pricing and access to quality content. Sun Network has a distinct advantage in the southern regional markets on account of its insightful understanding of the regional preferences and with key competitive strengths including that of a large movie library of regional languages. Sun Network is the preferred choice for content providers as it is the only player with maximum reach in the areas it operates.

Opportunities:

The ongoing digitalization of content, shift to online and mobile distribution of content and the rapid pace of invocation create opportunities to serve new customers in new markets. The presence of large and wealthy Indian diaspora abroad is another powerful enabler for market expansion abroad.

The M&E industry influenced by digitalization, the convergence of TV, mobile telephony and the Internet poised for a growth trend. The fact that significant households of India are still without television connectivity highlights the scope of growth in the segment. The majority of the revenue generated in the television industry is through advertisements, followed by subscription. Strong growth projected in DTH, Digital Cable segment would result in substantial increase in subscription revenue over the years to come. Increasing interest in regional content among Indian population across the borders, results in increased overseas viewership thereby attracting foreign investment. Radio broadcasting in India, which is still in its infancy, is evolving to be a revenue spinner in the coming years.

SEGMENT

Sun Network operations predominantly relate to a single segment “Broadcasting”.

OUTLOOK

Sun Network with its presence across genres like general entertainment, movies, music, news, kids, action, life and with a dominant market share in the four southern states of India (Tamil Nadu, Kerala, Karnataka and Andhra Pradesh) ensures continued and sustained viewership and prominent role in the Media and Entertainment Industry. A steady flow of highly popular programs and a dominant share of audience viewership have given the network tremendous pricing power vis-a-vis competitors.

Background and corporate information

Sun TV Network Limited ('Sun TV' or 'the Company') was incorporated on December 18, 1985 as Sumangali Publications Private Limited. The Company is engaged in producing and broadcasting satellite television and radio software programming in the regional languages of South India. The Company is listed on the Bombay Stock Exchange ('BSE’) and the National Stock Exchange ('NSE’) in India.

The Company is listed on the Bombay Stock Exchange ('BSE’) and the National Stock Exchange ('NSE’) in India. The Company currently operates television channels in four South Indian languages predominantly to viewers in India, and also to viewers in Sri Lanka,

Singapore, Malaysia, United Kingdom, Europe, Middle East, United States, Australia, South Africa and Canada. The Company's flagship channel is Sun TV. The other major satellite channels of the Company are Surya TV, Gemini TV and Udaya TV. The Company is also into the business of FM Radio broadcasting at Chennai, Coimbatore and Tirunelveli. The Company’s film production / distribution division ‘Sun Pictures’ undertakes production / distribution of movies in the Tamil language. During the current year, the Company has acquired license to operate an Indian Premier League (‘IPL’) franchise in the city of Hyderabad from the Board of Control for Cricket in India (‘BCCI’).

FILM AND PROGRAM BROADCASTING RIGHTS (‘SATELLITE RIGHTS’)

Acquired Satellite Rights for the broadcast of feature films and other long-form programming such as multi-episode television serials are stated at cost. Future revenues cannot be estimated with any reasonable accuracy as these are susceptible to a variety of factors, such as the level of market acceptance of television products, programming viewership, advertising rates etc, and accordingly cost related to film and program broadcasting rights are fully expensed on the date of first telecast of the film / program episode, as the case may be. The maximum useful life of Satellite Rights in the opinion of the management is not likely to exceed 10 years.

FILM PRODUCTION COSTS, DISTRIBUTION AND RELATED RIGHTS

Upon the theatrical release of a movie, the cost of production / acquisition of all the rights related to each such movie is amortized in the ratio that current period revenue for the movie bears to the management’s estimate of the remaining unrecognised revenue for all rights arising from the movie, as per the individual-film-forecast method. The estimates for remaining unrecognised revenue for each movie is reviewed periodically and revised if necessary. The maximum useful life of film production costs, distribution and related rights in the opinion of the management is not likely to exceed 10 years.

Expenditure incurred towards production of movies not complete as at balance sheet date if any, are classified as intangible assets under development.

LICENSES

Licenses represent one time entry fees paid to Ministry of Information and Broadcasting ('MIB’) under the applicable licensing policy for Frequency Modulation ('FM’) Radio broadcasting. Cost of licenses are amortized over the license period, being 10 years.

FIXED ASSETS

· Buildings

· Plant and machinery

· Computer and related equipment

· Furniture and fittings

· Office equipment

· Motor Vehicles

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 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.61.98
UK Pound	1	Rs.102.67
Euro	1	Rs.83.97

INFORMATION DETAILS

Report Prepared by :

SNT

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	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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
DEFAULTER
--EPF	YES/NO	NO
--RBI	YES/NO	NO
TOTAL		65

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 unfavorable 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

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.