Annual Report 2015-16
INFORMATION ENTERTAINMENT EXPERIENCES BRINGING IT ALL TOGETHER! CONTENTS CORPORATE OVERVIEW 1-23 2 1HWZRUNDWD*ODQFH 4 &RUSRUDWH-RXUQH\ 5 3LOODUVRIWKH2SHUDWLQJ0RGHO 6 0DUNHW(QYLURQPHQW *URZWK'ULYHUV 8 %RDUGRI'LUHFWRUV 10 &KDLUPDQ·V0HVVDJH 12 %ULQJLQJ LW DOO 7RJHWKHU 22 &RQWHQW$VVHW0RQHWLVDWLRQ &RUSRUDWH,QIRUPDWLRQ
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FINANCIAL STATEMENTS 92-195
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FY 2015-16,clockinganimpressive and its mobileapplicationfor portal 7.8 millionticketspermonthonits BookMyShow soldanaverageofover 7.8+ RIRYHU FORFNLQJDQLPSUHVVLYHJURZWK LWVSRUWDODQGLWVPRELOHDSSOLFDWLRQIRU)< RIRYHUPLOOLRQWLFNHWVSHUPRQWKRQ )<%RRN0\6KRZVROGDQDYHUDJH DQDYHUDJHRIPLOOLRQYLVLWVSHUPRQWK,Q ,Q)<ERRNP\VKRZFRPUHFRUGHG BookMyShow & Properties Marketplace E-Commerce million THE COUNTRY. AND TOWNSACROSS ACROSS 1,662CITIES ON TVANDWEB, OF OVER17.9 CUSTOMER BASE HAS ACUMULATIVE HOMESHOP18 Annual Report 2015-16 Annual Report MILLION (;3(5,(1&(6 21 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW Content Asset Monetisation The content monetisation function for TV18 and Viacom18 content and channels is wholly managed by IndiaCast, an equal partnership joint venture between the two companies. Additionally, it monetises channels and content for other broadcasters too. The entity has three clear mandates of distribution, syndication and licensing of content. 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It has news channels and IBN-Lokmat (a Marathi expectations, may be 'forward-looking a substantial presence in the digital content regional news channel in partnership with statements' within the meaning of applicable space via its portals - Moneycontrol, the Lokmat group). It also operates a securities laws and regulations. Actual in.com, Firstpost, News18 and Burrp. 24-hour Indian news channel in English, E-commerce marketplace and properties targeting global audiences. On the general results could differ materially from those such as HomeShop18 and BookMyShow entertainment side, TV18 has a joint venture expressed or implied. Important factors that form an important part of Network18's with Viacom Inc called Viacom18, which FRXOGLQÁXHQFHWKH&RPSDQ\·VRSHUDWLRQV line-up. Network18's publishing business operates an array of general entertainment include economic developments within the has an interesting mix of business and channels such as Colors, Colors HD, country, demand and supply conditions special interest publications such as Forbes &RORUV,QÀQLW\5LVKWH\079,QGLD079 in the industry, input prices, changes in India, Overdrive, Better Interiors and Better Indies, Comedy Central, Vh1, Nickelodeon, Photography. The Company also has Nick HD+, Sonic and Nick Jr./Teen Nick government regulations, tax laws and other strategic investments in Yatra and Topper. DQGÀYHUHJLRQDOJHQHUDOHQWHUWDLQPHQW factors such as litigation. channels - Colors Kannada, Colors Bangla, Network18’s broadcast business is Colors Marathi, Colors Oriya and Colors spearheaded by its subsidiary ‘TV18 Gujarati. TV18 also has a joint venture with 24 Network18 Media & Investments Limited prospects further. India isnowanover balances,boostingIndia’sgrowth external KHOSHGFRROLQÁDWLRQDQGLPSURYHÀVFDODQG stability. Weaker commoditypriceshave India iswidelyseenasabrightspot of globaleconomiclandscape, In anuncertain Indian Economy Fund, 2016) Monetary (Source: International PDUNHWSULFHVZLWKÀVFDO\HDUDVDEDVH\HDU )RU,QGLDGDWDDQGIRUHFDVWVDUHSUHVHQWHGRQDÀVFDO\HDUE *(Excludes theG7-Canada,France, Germany, Italy, Japan,UnitedKingdom,Statesandeuroareacountries). P: Projections Fund (IMF) Monetary The International Global Economy Economic Overview other broadcasters. bouquet ofchannelsfromthegroupand andcontentsyndicationfor the services channeldistribution,placement international monetisation entitythatdrivesdomesticand contentasset India Cast,amulti-platform astrategicjointventurecalled formed Video content.TV18andViacom18have offeringOn-Demand distribution platform launched VOOT, (OverTheTop) anOTT Viacom18 MotionPictures.has group’s moviebusinessisoperatedthrough channel.The TV18, afactualentertainment A+E Networks,whichoperatesHistory Sub-Saharan Africa Africa Sub-Saharan India** China Emerging andDevelopingEconomies Other AdvancedEconomies* United Kingdom Japan Euro Area United States Advanced Economies World Output Global growth trend trend growth Global DVLVDQG*'3IURPRQZDUGLVEDVHGRQ*'3DW economy. some ofthekeyfactors shoringupIndia’s actions andlowerglobaloilprices are major economyintheworld.Positive policy in 2014-15,makingitthefastestgrowing in 2015-16stoodat7.6%,upfrom 7.4% US$ 2trillioneconomyanditsGDP growth grow 6.5%in2016. China’seconomyisexpectedto exports. to theeconomyagainstweakeningnet conditions isprovidingastrongbuffer by loweroilpricesandeasyfinancial stronger privateconsumptionsupported activity remainsstrong.IntheEurozone, In theUnitedStates,overalleconomic and developingeconomies. risks fromweaknessesinemergingmarkets tensions, slowdowninChinaandpossible inEurope,globalgeopolitical turmoil oilprices,theeconomic include crude riskfactors and inconsistent,primary However, thegrowthislikelytobeweak 3.2% in2016asagainst3.1%2015. has revisedglobalgrowthforecastto 2015 . 30 4.0 3.0 3.4 . . 7.5 7.5 7.3 . . 6.2 6.5 6.9 . . 4.6 4.1 4.0 . . 2.4 2.1 2.0 . . 2.2 -0.1 1.9 0.5 2.2 0.5 . . 1.6 1.5 1.6 . . 2.5 2.4 2.4 . . 2.0 1.9 1.9 . . 3.5 3.2 3.1 2016 (P) 2017 (P) (%) 3.1% in2015. forecast to3.2%in2016asagainst (IMF) hasrevisedglobalgrowth FundThe InternationalMonetary 6RXUFH (QWHUWDLQPHQW6HFWRU5HSRUW,%() major economy intheworld. 2014-15, makingitthefastest growing 16 stoodat7.6%,upfrom7.4% in economy anditsGDPgrowth in 2015- India isnowanoverUS$2trillion US$ 3.2 MANAGEMENT DISCUSSION &ANALYSISMANAGEMENT DISCUSSION 2 % trillion Annual Report 2015-16 Annual Report 25 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW Indian Media and Entertainment models are being experimented with. As seen due to its large capacity to consume Industry Overview before in many industries and parts of the new products and businesses. (Source: The year 2015 was a seminal year in many M&E industry as well, India may develop its KPMG-FICCI Indian Media and Entertainment Industry ways for the Media and Entertainment own unique business models rather than adopt 5HSRUW (M&E) industry. It was a year that sparked global ones. excitement and renewed hope, albeit peppered with a healthy dose of reality. The year saw The M&E industry has been largely driven the launch and expansion of a host of new by increasing digitisation and higher internet services, notably OTT, Hindi and regional feeds usage over the last decade. RQVRFLDOPHGLDDVZHOODVVLJQLÀFDQWRULJLQDO `2,260billion programming. There is a lot of excitement and The Indian M&E industry is expected to The Indian M&E industry is expected to activity in the digital space, and many business reach ` 2,260 billion by 2020. This is reach ` 2,260 billion by 2020. The Indian Media and Entertainment industry: Size (` billion) Overall industry size Growth in 2010 2011 2012 2013 2014 2015 (For calendar year) 2015 over 2014 TV 297.0 329.0 370.1 417.2 474.9 542.2 14.2% Print 192.9 208.8 224.1 243.1 263.4 283.4 7.6% THE M&E INDUSTRY Films 83.3 92.9 112.4 125.3 126.4 138.2 9.3% HAS BEEN 5DGLR 10.0 11.5 12.7 14.6 17.2 19.8 15.3% LARGELY DRIVEN Music 8.6 9.0 10.6 9.6 9.8 10.8 10.2% BY INCREASING OOH 16.5 17.8 18.2 19.3 22.0 24.4 10.9% DIGITISATION AND Animation and VFX 23.7 31.0 35.3 39.7 44.9 51.1 13.8% HIGHER INTERNET Gaming 10.0 13.0 15.3 19.2 23.5 26.5 12.8% Digital Advertising 10.0 15.4 21.7 30.1 43.5 60.1 38.2% USAGE OVER THE Total 652 728 821 918 1,026 1,157 12.8% LAST DECADE. Source: KPMG in India analysis, 2016 6RXUFH (QWHUWDLQPHQW6HFWRU5HSRUW,%() 26 Network18 Media & Investments Limited include: industry. These the MediaandEntertainment hastakenvariousinitiatives for government Favourable policyinitiatives– television andprintmedia. to establishastrongfoothold,especiallyin markets on relativelyunderpenetratedrural and brandsareactivelylookingtocashin *URZWKLQ5HJLRQDO0DUNHWV² advertisers. to platform by providinganalternate KDVEHQHÀWHGLQWHUQHWDGYHUWLVLQJWRR more content,thistechnologicalgrowth Besides consumerswhoareenjoying and mobilephonesisincreasingrapidly. penetrationviawirelessconnections Internet and strategy. ofinnovation have touptheirgameinterms Accordingly,platforms. contentcreatorswill experiencing avarietyofcontentondifferent untouched bythedigitalrevolution, large sectionofthepopulation,hitherto inconsumption,witha a paradigmshift hasledto The reachofdigitalplatforms the waycontentisviewedinIndiatoday. Digitisation – boosted thistrend. to establishthemselvesinIndiahavefurther 5HOD[DWLRQRIUXOHVWRDOORZIRUHLJQEUDQGV sectorinIndia. Media andEntertainment a burgeoningmiddleclasshavehelpedthe steady increaseindisposableincomesand Growth insocio-economicsector– Growth Drivers In broadcasting, the FDI limit was Inbroadcasting,theFDIlimitwas Digitisingthecabledistributionsegment approval from the FIPB now approval fromthe FIPB now remains at100%, but doesnotrequirean affairstelevisionchannels and current television channels;thelimitfornon-news affairs approval routefornewsandcurrent Investment Promotion Board(FIPB) increased from26%to49%viatheForeign funding that woulddrawgreaterinstitutional Digitisationhaschanged TheIndian Advertisers Advertisers The the distributionvaluechain.Thisresultedin a numberofon-groundchallengesacross per User)havefailedtomaterialisedue ,,SDUWLFXODUO\RQ$538 $YHUDJH5HYHQXH SURFHVV)XUWKHUEHQHÀWVRI3KDVH,DQG caseschallengingthe due tomultiplecourt timelines, theprocesshassloweddown JRYHUQPHQWKDVQRWRIÀFLDOO\H[WHQGHGWKH seeded byDecember2015.Whilethe deadline witharound76%ofboxes Phase IIIdigitisationfailedtomeetits albeit agamechanger 1. Digitisation:Slowerthanexpected, Key highlights/developments: Anaudio-visualco-productiondealhas Grantinglicencesto45new *UDQWLQJLQGXVWU\VWDWXVWRWKHÀOPLQGXVWU\ IncreasingFDIlimitfrom74%to100%in resources forco-productions FUHDWLYHDUWLVWLFÀQDQFLDODQGPDUNHWLQJ from bothcountriesexploretechnical, tohelpproducers Canadian governments been signedbetweentheIndianand andnewschannels entertainment IRUHDV\DFFHVVWRLQVWLWXWLRQDOÀQDQFH DTH suchas cable and distribution platforms No. ofsubscribers 6RXUFH .30*),&&,,QGLDQ0HGLDDQG(QWHUWDLQPHQW,QGXVWU\5HS 250 100 150 200 50 0 Analogcable 0121 0321 0521P21P21P21P2020P 2019P 2018P 2017P 2016P 2015 2014 2013 2012 2011 8 74 6 31 9 34 19 69 Digitalcable 9 37 25 68 Pay DTH 10 40 29 70 15 44 37 65 subscribers). digital cablesubscribersand79millionDTH subscribers wouldbe53:47(i.e.90million between digitalcablesubscriberstoDTH It isexpectedthatby2020,theratio in 2015. a slowdowninsubscriptionrevenuegrowth Free DTH MANAGEMENT DISCUSSION &ANALYSISMANAGEMENT DISCUSSION RUW 19 55 55 41 20 74 80 5555 Annual Report 2015-16 Annual Report 21 76 84 ( ` 22 78 87 in million) 22 79 90 27 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW Impact on content: On the content side, the BARC INDIA DATA COVERS % collective rural and urban ratings will need 40 to be thoroughly analysed before tangible SEVERAL NEW MARKETS 3G and 4G subscribers are likely to SUCH AS RURAL INDIA, constitute 40% of the total wireless progress is made on the guidance provided internet subscriber base. by data. Broadcasters are also likely to JAMMU AND KASHMIR review their programming to accommodate AND NORTH EAST. the content consumption patterns in rural OVERALL, THERE HAS markets as well. BEEN A SIGNIFICANT 2. 4G Rollout - The game changer The most critical game changer is the advent DD FreeDish: Inclusion of rural markets in INCREASE IN THE of 4G services in India. 3G and 4G subscribers ratings and Phase III digitisation together has NUMBER OF HOUSEHOLDS are likely to constitute 40% of the total wireless increased the importance of DD FreeDish INCLUDED. internet subscriber base. Content viewing has and more broadcasters will now see merit in already moved beyond television to mobile joining this platform. phones and handheld devices. This trend will Media Industry only accelerate as 4G ramps up. It is likely Better Coverage than TAM: Besides covering The Indian Television Industry to be a highly competitive space, resulting in WKHXUEDQSRSXODWLRQ%$5&,QGLDFRYHUVWKH Overview lower data costs and with consumers likely UXUDOVHFWRUDVZHOO0RUHRYHU%$5&,QGLD The size of India’s television industry was WREHWKHPDLQEHQHÀFLDULHV(Source: KPMG-FICCI uses NCCS (New SEC), where households estimated at ` 542 billion in 2015, which ,QGLDQ0HGLDDQG(QWHUWDLQPHQW,QGXVWU\5HSRUW DUHFODVVLÀHGEDVHGRQWKHHGXFDWLRQRI LVH[SHFWHGWRJURZDWD&$*5RIWR the chief wage earner and ownership of touch ` 1,098 billion in 2020. Subscription 3. Rollout of BARC a number of consumer durables from a revenues were estimated to have grown at a TAM (Television Audience Measurement) À[HGOLVW OLNHHOHFWULFLW\FRQQHFWLRQVFDUV &$*5RIGXHWRLQFUHDVHGPRQHWLVDWLRQ ,QGLDZDVUHSODFHGE\%$5& %URDGFDVW 2-wheelers, AC's etc.) to more accurately while advertising revenue was also estimated $XGLHQFH5HVHDUFK&RXQFLO ,QGLDLQ$SULO UHÁHFWWKHLUSXUFKDVLQJSRZHU WRKDYHJURZQDWD&$*5RI %$5&,QGLDLVWKHRQO\JRYHUQPHQW registered TV ratings agency in India. Impact on Advertising: With widespread The number of TV households in India stood FRYHUDJHE\%$5&WKHDGYHUWLVLQJVHFWRU at 175 million in 2015 – a market reach of %$5&KDVWKURZQXSKXJHDPRXQWRIUXUDO can now plan their strategies in a better 62%, and is expected to touch 200 million viewership data that was not accessible way. Although it can get challenging to tailor by 2020. The number of cable and satellite earlier. Channels and content creators are communication for different segments, it (C&S) subscribers was pegged at 160 now exposed to previously untapped viewer will ensure the right message is directed at million, reaching 174 million by 2020. With data, which could lead to a paradigm shift in the intended audience. Advertisers can now such industry expectations, the future of content strategy. enjoy better reach and visibility. Indian television looks bright. )RUWKHÀUVWWLPHLQ,QGLD%$5&ODXQFKHG$OO ,QGLD 8UEDQ5XUDO 79YLHZHUVKLSGDWDWKDW TV Industry Size (` in million) currently covers 153.5 million TV households 1,200 with 77.5 million urban and 76 million rural 365 households spanning megacities, 1-7.5 million 1,000 towns and less than 1 million urban areas and 320 800 rural areas. 276 242 733 600 210 637 181 548 Key Highlights of BARC India 155 468 400 136 125 407 Inclusion of new markets:%$5&,QGLDGDWD 116 320 361 200 281 covers several new markets such as rural 213 245 India, Jammu and Kashmir and North East. 0 2YHUDOOWKHUHKDVEHHQDVLJQLÀFDQWLQFUHDVH 2011 2012 2013 2014 2015 2016P 2017P 2018P 2019P 2020P in the number of households included. 6XEVFULSWLRQ5HYHQXH $GYHUWLVLQJ5HYHQXH 6RXUFH .30*),&&,,QGLDQ0HGLDDQG(QWHUWDLQPHQW,QGXVWU\5HSRUW 28 Network18 Media & Investments Limited However, largebroadcasterscontinueto markets, thisgenrecontinuestobeburdened. to increaseinproductioncosttheglobal a fasterclip.Withrisingcontentcostdue and EnglishGECs,wherethelattergrewat This genreincludesEnglishmoviechannels the pastyears,growingat15-20%annually. healthy growthrevenues in advertising over hasshown platform The Englishentertainment English Content(GECandMovies) C&S rightsofHindimovies. years haveseenarationalisationinpricesof increase inthisgenre.Thepastcoupleof willcontinueto budgets fromadvertisers of channels.Itisexpectedthatadvertising throughtheaddition inventory in advertising has largelygrownonthebackofincrease frequency buildingandinthepast,genre The Hindimoviesgenreismostlyusedfor Hindi Movie appearinginthetop10channelslist. started VXFKDV=HH$QPRO6WDU8WVDYDQG5LVKWH\ of channels.Free-to-air (FTA) channels sample sizeledtoascaleupintherankings datainthe Theinclusionofrural advertisers. assessmentsby andinternal performances spendsbasedonpast advertising showssawincreased the topperforming %$5&,QGLDOHGWRDPELJXLW\LQUDWLQJV viewership measurementsystemby Although theintroductionofanewTV ,QGXVWU\5HSRUW (Source: KPMG-FICCIIndianMediaandEntertainment revenuesin2015. of 15-16%inadvertising front,witnessingagrowth the advertising Hindi GECsremainedtheclearfavouriteon watched ontelevisionat29%marketshare. themajorchunkofcontent continue toform generalHindi entertainment channels (GECs) Hindi GEC original content. TV channelsarelookingatinvestingin increased thecostofcontent.Thus,regional Dubbed contentintheregionalspacehas share in2015. followed byregionalmovieswitha6.6% segment with29.6%viewershipshare regional markets,GECsaretheleading ofviewershipwith25.7%share.In terms Tamil channelshadthehighestsharein viewership share,wasthesecondlargest. markets, theTelugu market,witha24.4% 41, 2015toWeek 7,2016.Amongregional viewership shareovertheperiod-Week regional musicaccountedfor38.99% $FFRUGLQJWR%$5&UHJLRQDOPRYLHVDQG Content Regional channels. because ofthepremiumpositioning of itdrivinggrowthinsubscriptionrevenues invest intheirEnglishbouquetanticipation 6RXUFH .30*),&&,,QGLDQ0HGLDDQG(QWHUWDLQPHQW,QGXVWU\5HS Viewership shareofregionalchannels Bhojpuri2.10 Marathi4.60 Malayalam9.20 Others13 Tamil 25.70 market share. of contentwatchedontelevisionat29% (GECs) continuetoformthemajorchunk channels Hindi generalentertainment 29 RUW MANAGEMENT DISCUSSION &ANALYSISMANAGEMENT DISCUSSION % Gujarati0.40 Oriya2.30 Bengali6.60 Kannada11.60 Telugu 24.40 Annual Report 2015-16 Annual Report (%) 29 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW Sports segment Sports has been the best segment among the various genres of television content. The Indian Premier League and Cricket World Cup continued to attract increased sponsorship, translating into higher advertising spends. The biggest positive has been the interest generated in sports other than Cricket. Creation of leagues in sports such as Kabbadi and Football has turned out to be a successful outing for its promoters, especially Kabaddi, which is now likely to be a bi-annual event. Content is King: Increased relevance of content in the time of digitisation and consumer data boom The Indian television industry has evolved manifold in the last two decades. From around 25 channels in 1995 to over 800 channels today, everything from viewing experience, operating models to nature of News segment Kids segment programmes has changed. Importantly The television news industry witnessed a The kids genre has been doing well in though, to survive in this cut throat modest growth of 5-8%, with non-traditional terms of advertising revenue. This genre is competitive market, delivering quality players such as e-commerce and auto being largely dominated by advertising targeted content is the key. With each new channel the top drivers. One of the reasons for tepid at children and non-traditional categories or platform, the emphasis on quality is only growth was lesser advertising spend in 2015. such as e-commerce and autos. The non- increasing. However, Patanjali, a consumer products kids brands contribute to 45-65% of the EUDQGOHGE\%DED5DPGHYHPHUJHGDVRQHRI inventory because 90% of households own the biggest spenders, with advertising spends only a single TV and a lot of default viewing mainly in the news genre. therefore occurs. Keeping this in mind, advertisers decide to broadcast non-kids WITH THE INCREASING From a cost perspective, 2015 was not advertisements, especially advertisement USAGE OF INTERNET AND a good year for the news genre. This is focusing on mothers. primarily because the businesses could SMARTPHONES, NEWS QRWIXOO\DEVRUEWKHEHQHÀWVRIGLJLWLVDWLRQ According to industry experts, children CHANNELS PRESENT They also incurred increased expenditure connect better with local language content. ON DIGITAL PLATFORMS on employee and talent costs. Carriage fees This niche segment has a lot of promise GAINED TRACTION. NEWS were hiked as well for new deals. for growth. Sun TV currently leads this BROADCASTERS ARE AIMING space as they have one channel in each of TO UTILISE SOCIAL MEDIA With the increasing usage of internet and the four South Indian languages – Tamil, smartphones, news channels present on Telugu, Malayalam and Kannada. Disney and TO INCREASE VIEWER digital platforms gained traction. News Hungama both provide their Kids channels ENGAGEMENT. broadcasters are aiming to utilise social with Tamil and Telugu audio feeds, while media to increase viewer engagement. They Cartoon Network and Pogo are available are looking to leverage this trend and earn with Tamil feeds. extra revenues from the digital space (Source: http://www.journalism.org/2016/06/15/state-of- going forward. the-news-media-2016/) 30 Network18 Media & Investments Limited surge in business. It is a time when content surge inbusiness.Itisatimewhencontent LPSDFWRI%$5&79LQGXVWU\ORRNVVHWIRUD Given thefastchangingdynamicsand ofcontentandoverallstrategy.in terms the bedrockofdirectionthatistobetaken driving theagendaofinnovationasitforms Customer dataanalyticsplaysabigrolein techniques toreachtheintendedconsumer. their showsanduseinnovativemarketing Channels todayarecreativelypackaging on creatingcontentfortargetedconsumers. increasing, greateremphasisisbeinglaid such as‘OnairwithAIB’. Ascompetitionis by cateringtoaudienceneedswithshows content leadingtonichesegmentationor to inducebingewatchingorlocalisationof programme to-back episodesofaparticular viewing. For example,thetelecastofback- hook theviewerandencourageappointment Channels arelookingatdifferentwaysto from digitalmedia offacingcompetition the heart Innovation: Needofthehour. At up its game. up itsgame. LWVHIÀFLHQF\79LQGXVWU\FDQVWUDWHJLVHDQG RQOLQHPHGLXPÀ[HVWKHLVVXHVDQGJOLWFKHVLQ television versusonlinemedium.Whilethe - enhanced toabattlebetweenplatforms of similargenreandchannels,ithasnow the competitionwasbetweenprogrammes toes andconstantlylooktoinnovate.Earlier, needtobe on their creators andadvertisers revenue reached continued toberobustasadvertising to of 7.6%,upfrom grewatarate The Indianprintindustry Print Industry circulation revenue. andtherestby accounted forbyadvertising More than66%ofthetotalrevenueswere period. 7.1% duringthecorresponding FLUFXODWLRQUHYHQXHVJUHZDWD&$*5RI 8.5% between2010and2015,whereas IURPDGYHUWLVLQJKDYHJURZQDWD&$*5RI ` 283 billion in 2015. Print advertising 283billionin2015.Print advertising ` ` 189billion.Therevenues 263billionin2014 AS WELL. FOR NON-FICTIONCONTENT A SUBSTANTIAL APPETITE ADVENTURE. THISSHOWS FORENSIC, SURVIVAL,AND SCIENCE, TECHNOLOGY, FROM WILDLIFE,LIFESTYLE, VARIED CONTENTRANGING WITNESS TOANDENJOY INDIAN AUDIENCESARE MANAGEMENT DISCUSSION &ANALYSISMANAGEMENT DISCUSSION Annual Report 2015-16 Annual Report 31 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW Digital Consumption are witnessing, the best of which is yet to eventually facilitating crucial decisions. Digital advertising is expected to continue to come. The largely unpredictable challenges 5XUDOUDWLQJVZLOOEHQHÀWHFRPPHUFH be the fastest growing advertising segment RIFRQWHQWVWUDWHJ\DQGWKHÁX[LQYLHZHUVKLS marketers as well since this sector is for the media industry in the foreseeable consumption makes for uncertain times for gradually turning its attention towards future. Currently, in India, digital advertising the industry. That said, these challenges are capturing under-penetrated rural markets constitutes about 12.6% of the total advertising cloaked in potential for exponential growth. given the saturation in urban markets for market in 2015. It is expected to grow to 26% The key is to tap consumers’ mind and VSHFLÀFSURGXFWFDWHJRULHV:LWKUXUDO of the total advertising market by 2020. OHYHUDJHDQ\ÀUVWPRYHUDGYDQWDJH ratings available now, it will be easier for FRQWHQWFUHDWRUVWRFUHDWHVSHFLÀFFRQWHQW Increasing second screen consumption, Impact of rural ratings on the keeping in mind preferences of the rural growing mobile internet and device industry population. penetration and technology innovations How the rural rating inclusion will will drive digital advertising growth at a shape the industry dynamics? Inclusion of rural markets in ratings and &$*5RIRYHUWKHQH[WÀYH\HDUV 7KHUDWLQJVKDYHLGHQWLÀHGWKHSULPHWLPHLQ Phase III digitisation together has made Digital advertising continued its strong rural markets between 5.30 p.m. to 10.30 DD FreeDish a lot more relevant. More run with a 38.2% growth over 2014 as a p.m. This will allow broadcasters to review broadcasters will consider becoming growing internet user base and usage was their programming to accommodate content available on the DD FreeDish platform. supplemented by increased spend allocation consumption patterns in rural markets. by marketers. Currently, the rural market occupies only However, the inclusion of the rural ratings is 7-10% of the total TV news advertising pie, still at a nascent stage and its implications Conclusion / Drivers which is expected to grow at a rapid rate. and the overall effect still remains to be Overall, the growth story of the M&E Monetisation of rural markets will be one fully deciphered. Going forward, advertising sector continues to be positive with a few of the key growth drivers for the TV news rates and advertising spend allocation could challenges like completion of digitisation. industry in the coming years. Advertisers FKDQJHVLJQLÀFDQWO\LIVLPLODUWUHQGVVXVWDLQ Opportunities are going to be plentiful can now have real data to back their media considering the technological boom that we budgets aimed at the rural audience, 32 Network18 Media & Investments Limited dynamics, tastes and preferences of our dynamics, tastes and preferencesofour the consumer. We remainagiletochanging by theprincipleofcapturingpulse of Network18’s business strategyisguided position intheindustry. programmes, wehavesustainedanenviable comedy programmestoinnovativemusic ground-breaking realityshows,entertaining audiences thoroughlyengaged.From is steeredbythecommitmenttokeep print publications.Ourcontentcreation of TVchannels,digitalofferingsand has packagedaninterestingportfolio demographic steeringdemand,Network18 With ayoungerandmoreaware preferences ofouraudiences. understand thechangingtastesand At Network18,weconstantlystriveto engagement acrossmultipletouchpoints. andaudience excellence, fairjournalism that setnewbenchmarksincreative offerings Media andEntertainment provide consumerswithbest-in-class Network18 issteeredbythezealto audience engagement. productsthat setnewbenchmarksincreativeexcellence,fairjournalismand and Entertainment Network18’s operatingmodelisdrivenbyitszealtoprovideconsumerswithbest-in-classMedia Operating Strategy 03 02 01 Agility a DiverseContentPlatter Consumer Engagementwith osmrDie oe International Collaboration Consumer DrivenModel informs overallstrategicdirection. informs driving theagendaofinnovationand data analyticsasitplaysabigrolein FRQVXPHU:HÀUPO\EHOLHYHLQFXVWRPHU marketing techniquestoreachtheintended packaging ourshowsanduseinnovative We atNetwork18believeincreatively services andapplications. services shopping andticketing,mobile phone HQWHUWDLQPHQWPDUNHWVDQGÀQDQFHRQOLQH includingnewsand interests andservices, of brandscateringtoawiderange VHJPHQWLQFOXGHVDGLYHUVLÀHGSRUWIROLR Network18’s digitalcontentandcommerce to diverselanguagesandgenres. and regionalprogramming,catering channels offersauniquemixofnational Network18’s bouquetof34television new course for the industry over the years. over theyears. new coursefortheindustry a ground-breaking innovationshavecharted such asthehomeshoppinginitiative,its latest technologiestopioneeringmoves audiences. From beingearlyadoptersof 04 05 Innovation Network Alliance its talentpool. employee engagementinitiativestoretain severalskilldevelopmentand undertakes from variousstreamsandregularly skilledprofessionals continuously recruits area.It for excellenceinthiscrucial media businessandNetwork18strives People areakeydifferentiatorin to providebest-in-classmediaofferings. and Forbes inthe businessmagazinegenre A+E Networksinfactualentertainment general news,CNBCinbusiness CNNinEnglish Viacom inentertainment, leading globalmediaplayersincluding withseveral Network18 haspartnerships 07 06 MANAGEMENT DISCUSSION &ANALYSISMANAGEMENT DISCUSSION People Development Annual Report 2015-16 Annual Report 33 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW Strengths, Opportunities and Threats The Company’s consumer-led focus is manifest in its operational philosophy, which is centred OVER 550 million on delivering maximum value to its stakeholders. Network18 reaches out to over 550 million* television viewers through its 34 channels. The multi-platform consumer of today is more active, aware and Multi-platform assertive, with strong opinions on key issues. Network18 harnesses the approach power of this digitally empowered consumer in chalking out its product strategy for content creation across all platforms. Operational Overview Television Business Network18 has an array of exciting brands and products designed to delight viewers Brand At Network18, the focus is on driving the highest standards of creative across genres, age groups and geographies. excellence & excellence by fostering a culture of innovation to build new content Through its subsidiary, TV18 Broadcast innovation formats across platforms, thereby creating strong brands across diverse Limited, it operates 34 television channels media. across news, entertainment and factual entertainment genres, in Hindi, English and various regional languages to cater to Steered by a professional and experienced team, Network18 constantly audiences across age groups and locations strives to host thought leadership – on air, online and on-ground, deriving within and outside India. Thought leadership not only through consumption numbers but also by facilitating leadership the development of new ideas and emerging thought processes. It has to Network18 reaches more than 550 million1 its credit numerous innovations across genres and platforms. television viewers through its 34 channels.1 News Network18 believes in fairness to be a Network18 comprises leading television channels, digital and mobile Network properties and publications in all key media genres. This facilitates core principle of engaging with audiences. synergy cross-promotion and cross-pollination of content across its network, thereby It provides news and views that seek to enabling enhanced advertising and subscription revenue generation. go beyond the traditional newspaper and TV headlines. It delivers digital media solutions to cater to new age expectations. Network18’s digital content and commerce The Company has a track record of building successful strategic alliances VHJPHQWLQFOXGHVDGLYHUVLÀHGSRUWIROLRRI with nationally as well as globally reputed names in the media industry, Strategic brands catering to a wide range of interests collaborations such as Viacom in entertainment, CNN in English general news, CNBC in business news, A+E Networks in factual entertainment and Forbes in the and services. This includes news and business magazine genre. HQWHUWDLQPHQWPDUNHWVDQGÀQDQFHRQOLQH shopping and ticketing. Opportunities Threats India’s Media and Entertainment industry is Despite the large opportunity canvas, the on the cusp of a new era of growth, riding industry’s growth could be hampered by the digitisation of television distribution, various threats and challenges, notably steady growth of regional media and fast- piracy, violation of intellectual property, lack emerging new media businesses. In this of quality content, inability of companies emerging media landscape, Network18, to ensure good quality production and with its multi-platform portfolio is geared distribution infrastructure. Network18 is to tap into new business opportunities continuously tracking these threats and to be unlocked by leveraging technology XSJUDGLQJLWVRSHUDWLRQDOOHJDODQGÀQDQFLDO 1 6RXUFH %$5&_$OO,QGLD 8UEDQ5XUDO _$OO innovation and harnessing emerging trends. strengths to successfully counter the same. 1st Jan 2016 to 31st March 2016 34 Network18 Media & Investments Limited in India. accessible inovertwomillionhouseholds HD asCNBC-TV18 Prime HD,whichis WR%$5&&1%&79LVDOVRDYDLODEOHLQ business newschannelviewersaccording largest businessnews channelinthecountry, CNBC-Awaaz inits11thyearistodaythe CNBC-Awaaz English BusinessNewschannelwith50% news genre.ItcontinuedtobetheNo.1 1 TVchannelintheEnglishbusiness CNBC-TV18’s leadershipasIndia’sNo. FY 2015-16markedthe16thyearof CNBC-TV18 &CNBC-TV18 Prime HD and reachedouttomorethan33million PDUNHWVKDUHDPRQJVWDIÁXHQWYLHZHUV a record72%viewership During BudgetWeek, CNBC-TV18 garnered event oftheyear–UnionBudget2016. watched channelduringthebiggestpolicy ZLWK%$5&GHFODULQJ&1%&79WKHPRVW 7KLVÀQDQFLDO\HDUHQGHGRQDKLJKQRWH with eachcity’sentrepreneurcommunity. these citiesaswellspecialtête-à-tête’s Hyderabad todolivemarketopeningfrom Chennai,Kolkata, Kerala and – Bengaluru, WRWKULYLQJÀQDQFLDOFHQWUHVRIWKHFRXQWU\ ‘Inside’ series.CNBC-TV18 teamstravelled This yearalsosawtheextremelysuccessful movements. technical analystsfordailyanalysisofstock the biggestfundamentalguestsand ‘Market Wallahs’ thatbroughtonboard segment‘DidYoujournalism Know?’to viewer preferences–fromtheinformative tomeettheneedsofchanging and formats programming bouquetwithnewshows CNBC-TV18 continuouslyreinventedits viewers inQ4’2015itself. Duringtheyear, Business News 4 amongstEnglish 3 2 channel witha63%marketshare making ittheNo.1HindiBusinessNews tuned intoCNBC-Awaaz aloneinQ4’2015, large margin.Morethan56millionviewers leading theHindibusinessnewsgenrebya HSM Urban. amongst corebusiness newsviewersin Budget week, garnering 81% Budget week,garnering during themarkethoursinUnion CNBC-Awaaz outranked thecompetition Awards’. $ZDUGV·DQGWKHÀUVWRILWVNLQG¶7HFK*XUX Awards’, the9thYear ofcelebrating ‘Travel WKVXFFHVVIXOHGLWLRQRIWKH¶5HDO(VWDWH round theyear. Theyear2015markedthe benchmarkawardsandinitiatives industry CNBC-Awaaz alsohostsanumberof platforms. of savingsandinvestmentthroughvarious spreading awarenessabouttheimportance literacy initiative–‘Pehla Kadam’for &1%&$ZDD]DOVRODXQFKHGDELJÀQDQFLDO SURPRWHVWKHFDXVHRIÀQDQFLDOLQFOXVLRQ understanding ofbusinessandalso its extendedcoveragebelievesinsimplifying business genreinIndia.CNBC-Awaaz with been largelyresponsibleforgrowingthe policy makersandotherprofessionals,has business leaders,smallowners, speaking consumers,retailinvestors, The channel,whichistargetedatHindi 6SHDNLQJ0DUNHW 8UEDQ5XUDO 7 marketshare 6 in the Hindi intheHindi 5 DIÁXHQWYLHZHUV amongst andFebruary average ofJanuary viewership CNBC Bajarhasregistereda55%growthin Smt. AnandibenPatel. by Hon.ChiefMinisterofGujarat in businessleadershipandwerepresented celebrated thespiritofexcellence 'LZDV·DQG¶*XMDUDW5DWQD$ZDUGV·ZKLFK via keyinitiativesincludingthrough‘Gujarat key policymakersandconsumersinGujarat each initiative.CNBCBajarengageswith initiatives andsettingnewbenchmarkswith withvarious business inthecountry engaging withthecommunitythatpowers news channel.CNBCBajarhasbeen &1%&%DMDULV,QGLD·VÀUVW*XMDUDWLEXVLQHVV CNBC Bajar 8 7 6 5 4 3 2 6RXUFH %$5&_,QGLD_1&&6$%PDOH0Q+UV 6RXUFH %$5&_*XM'1''1+_1&&6$PDOH 6RXUFH %$5&_+608UEDQ_1&&6$%PDOH 6RXUFH %$5&_+60_1&&6$%PDOHVW-DQ 6RXUFH %$5&_,QGLD_$OO1&&6_VW-DQVW 6RXUFH %$5&_,QGLD,QGLD8UEDQ_1&&6$PDOH 1st Jan’16-31st Mar’16, 24Hrs 1st Jan’16-31stMar’16, Wk 9’16,weekdays,0800-1600hrs 24Hrs 31st Mar’16, 24Hrs Mar’16, 6RXUFH %$5&_,QGLD_$OO1&&6_VW-DQVW 24Hrs Mar’16, 24Hrs 1st Jan-31stMar’16, MANAGEMENT DISCUSSION &ANALYSISMANAGEMENT DISCUSSION 8 inthemonthofMarchover Annual Report 2015-16 Annual Report 35 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW IBN7 With continued focus on most relevant and evolved content for Hindi viewers, IBN7 relaunched the channel’s evening prime time GXULQJWKHÀUVWKDOIRIWKH\HDU5HGHVLJQHG to provide a refreshed look, the prime time band – 8 p.m. - 11 p.m. had a new show called ‘Hum Toh Poochenge’. This apart, three other shows got a fresh look and refreshed packaging – ‘India 9 Baje’, ‘Danadan’ and General News across 23 states and more than 200 districts ‘Criminal’. with a sample size of 20,000. 7KHÀUVWTXDUWHURI)<ZDVSULPDULO\ CNN-News18 also launched ‘In Your City’, dominated by coverage of PM Modi’s visits CNN-News18 (formerly CNN-IBN) a show focused on news from metro cities. to different countries, completion of Modi CNN-News18 remains a dominant player The channel continued with its social JRYHUQPHQW·VÀUVW\HDULQRIÀFHDQGWKHÀUVW in English language general news, reaching campaigns through '#GoodSamaritans' International Yoga Day. On the occasion of out to more than 33 million viewers9. The (Helping accident victims), '#GiveItUp' (LPG WKH0RGLJRYHUQPHQW·VÀUVWDQQLYHUVDU\ year FY 2015-16 was a milestone year for subsidy) and '#WhyPayExtra' (Service Tax). IBN7 conducted a nationwide survey, CNN-News18 as the channel celebrated its CNN-News18 also did special programming spread across 20 states and more than 200 10th anniversary. Apart from the special ‘Mission Bengaluru’ around the Bengaluru districts with around 20,000 sample size. programming for its 10th anniversary, the Municipal Elections and Independence day channel revamped its morning prime time programming '#MeriAzadi'. The channel launched two new shows – band, launched new shows such as ‘In Your ‘Shabaash India’ and ‘Khabron Mein Khaas’. City’ and ‘Simply South’ and ran several The major highlight of the second half of the The Bihar Assembly elections was a major social awareness campaigns. year was CNN-News18’s world exclusive area of focus for the channel. IBN7, along ¶3DN2VDPD/LQN5HYHDOHG·ZKLFKKDG with the sister channel CNN-News18 was 7KHÀUVWKDOIRIWKH\HDUVDZ&111HZV Pakistan’s then Defence Minister admitting WKHÀUVWWRFDOOWKH%LKDUHOHFWLRQVFRUUHFWO\ refreshing its morning prime time band with that his country’s top brass were aware IBN7 got a World Exclusive – the heart two new shows – ‘8 AM Express’ and ‘The about Osama bin Laden’s presence in wrenching video of atrocities faced by Morning News’. As PM Modi completed one the country. The special was extensively residents of Pakistan Occupied Kashmir. \HDULQRIÀFH&111HZVEURXJKWH[WHQVLYH covered by key publications across the The channel also did the most extensive programming around the same that included world. The Bihar elections coverage was coverage of PM Narendra Modi’s visits to 03V5RXQGWDEOH 3RLQWV30 1HZVPDNHU another programming highlight for CNN- 5XVVLD8$(DQGWKH86 Interviews' and a national poll conducted 1HZV7KHFKDQQHOZDVWKHÀUVWWRFDOO the Bihar elections correctly. The latter part of the year was marked by CNN-NEWS18 several exposes aired by the channel which REMAINS A CNN-News18 brought live coverage uncovered various scams – ‘Operation 30 DQGDQDO\VLVRIWKHÀQDQFHDQGUDLOZD\ Seconds’, ‘Operation Yamraj’ and ‘Naukri DOMINANT PLAYER ministers’ speeches and special shows Ke Lootere’ – compelling the concerned IN ENGLISH LANGUAGE such as ‘Axe The Tax’, ‘If I were FM’, ‘Budget government authorities to take cognisance GENERAL NEWS, Yatra’, ‘Budget on Campus’, ‘Kickstarting and necessary action. IBN7 started an India’, ‘Booster Budget: Politics’ and ‘Budget REACHING OUT & You’. CNN-News18 was the No. 1 9 6RXUFH %$5&&XPXODWLYH&RY>0QV@1&&6 01st Jan-31st Mar’16, 24 Hrs, All Days, All India. TO MORE THAN General English News channel on Budget 10 6RXUFH %$5&1&&6$OO WK)HE·+UV 33 MILLION VIEWERS Day with a 35% market share10. All India. 36 Network18 Media & Investments Limited news-makers from the UK. news-makers fromtheUK. such as‘TheUKEdition’regularlyfeaturestop Thechannel’slocalprogramming heartland. cultural eventsandhappeningsfromtheIndian 2016,whichbringstoviewerskey January a specialweeklyfeature‘ShadesofIndia’in business interestsinIndia.News18launched Indian diasporaandforconglomerateswith 1HZVLVDGHÀQLWLYHQHZVGHVWLQDWLRQIRUWKH the UK,SingaporeandMiddleEast. diaspora marketsincludingtheUS,Canada, channel ispresentinkeySouthAsian RQ5RJHUV %HOOÀEHULQ-XO\7KH America andwaslaunchedinCanada News18 expandeditsfootprintinNorth ‘News18 India’onMarch18,2016. channel wasrebranded‘News18’from audiences a‘WindowintoIndia’.The News18 isdesignedtogiveglobal News18 Union budgets. H[WHQVLYHSURJUDPPLQJRQERWKWKH5DLODQG that resultedinacrime.Thechanneldid some ofthemostinfamouslovestories thatshowcased ‘Ishq -aviolentlovestory’ The channellaunchedanewcrimeshow Call’, ‘Lajja’and‘NoidaAuthorityKe Bhoot’. Dakait’, ‘#PakSnoopWar’, ‘OperationPhone such as‘CancerWaali Nadi’,‘Band,Bajaaur throughreports in investigativejournalism saw IBN7bringingtotheforeitsstrength 7KHODVWTXDUWHURIWKHÀQDQFLDO\HDUDJDLQ Osama binLaden’swhereabouts. top Pakistani leadershipalwaysknewabout channel alsoairedaWorld exclusivethat the deterioratingairqualityinDelhi.The initiative called‘DillikoSaansLeneDo’on for viewers. completed toproducebetterqualitycontent the ETVnewschannelswastakenupand The technicalupgradationworkacrossall market News GujaratiwasNo.2initsrespective 75% and60%sharesrespectively, ETV ofviewership,with their marketsinterms -KDUNKDQGDQG(795DMDVWKDQZHUH1RLQ By theendofFY2015-16,ETVBihar/ ofSouthIndia. Indiaandparts North regional marketsandnowcoversallof strengtheneditspositioninthe has further With thisexpansion,theETVnewsnetwork stronghold intheregionalnewsspace. increaseETV’s This helpedtofurther news bouquet,waslaunchedinMay2015. 10th andlatestadditiontoETV’sregional regional newschannels.ETVNewsOdia,the on accountofexpansionitsbouquet ETV newsnetworkwitnessedstronggrowth ETV NewsChannels impactful journalism. A new brand positioning Anewbrandpositioning impactful journalism. fearlessand seven yearsofimpartial, April6,2015, IBN-Lokmatcompleted On IBN-Lokmat rating comparedtotheNo.2channel was rankedNo.1withmorethandoublethe On thecountingday, ETVBihar/Jharkhand for thesame. data andETVwasgivenon-screencredits audience. 22channelssourcedETVnews’ fastest andmostreliableresultslivetothe Hyderabad. ETVnewsnetworkprovidedthe were coveredwithaspecialsetupat In November2015,theBiharstateelections Regional News Regional 11 . 12 . 14 13 12 11 30,367+ subscribersonYouTube fans, 20,000+Twitter followersand presence witharound1.5millionFacebook IBN-Lokmat hasastrongsocialmedia &DPSDLJQ·DQG¶5RDG6DIHW\&DPSDLJQ· Campaign’, ‘MissionAdmission’,‘CallDrop Marathwada region,‘MumbaiMonsoon ‘Jagar Panyacha’ onthewatercrisisin Gadgebaba SwachataAbhiyan’and ScaminMaharashtra’,‘Sant – ‘Irrigation through varioushighimpactcampaigns issues IBN-Lokmat alsoraisedburning show. entertainment and ‘Hollywood-Bollywood’–aweekend alongwiththecity’slocalissues importance visit toprominentcitiesshowcasingits crime stories/incidents,‘DeshYatra’ –a ‘Crime Time’–ashowbasedonreal showwithspoofsonnews, entertainment year include‘TheFoknaad Show’–an Other specialsthatwereintroducedinthe Budget 2016’. ¶6WDWH%XGJHW·DQG¶8QLRQ 5DLOZD\ SLOJULPDJH·¶%DSSD0RU\D5H·¶'HHSRWVDY· ‘Mahakumbh Mela’,‘Wari –APandharpur SURJUDPPHVVXFKDV¶03·V5HSRUW&DUG· andshowedsignature state government FRYHUHGWKHÀUVWDQQLYHUVDU\RIWKHQHZ specials including‘Agenda Maharashtra’, During theyear, IBN-Lokmattelecastvarious during theyearundertwoseparatecategories. Awards’ Goenka ExcellenceinJournalism 7KHFKDQQHOEDJJHGWKHSUHVWLJLRXV¶5DPQDWK Day. speechontheUnionBudget Finance Minister’s the No.1MarathiNewschannel ‘Voice ofMaharashtra’.IBN-Lokmatwasalso introduced asareinforcementofbeingthe of ‘MaharashtrachaMahachannel’was Source: Simplify360 Socialmediaanalytics. Source:Simplify360 29th Feb 2016,11:00 to13:00,Mah/Goa. 6RXUFH %$5&,PSUHVVLRQV>V@0DOHV 15+All All India,CS Source: TAM; TVT000s,Date:8thNov’15,Market– 5HVSHFWLYHPDUNHWV 1&&6$OO 6RXUFH %$5& ,PSUHVVLRQV V 3HULRG 0DUFK MANAGEMENT DISCUSSION &ANALYSISMANAGEMENT DISCUSSION Annual Report 2015-16 Annual Report 13 during the duringthe 14 . 37 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW Record Rooms, Shower Rooms/Lockers and live performances. MTV was No. 1 in social media buzz in 10 out of 12 months in FY16 in the youth genre24. Music/ Miscellaneous MTV Indies MTV Indies is the world’s largest platform for independent subcultures and has been built in collaboration with a collective of artists and supporters of the independent music Hindi General Entertainment scene. Led by music, MTV Indies also reflects other subcultures such as independent Rishtey films, art, comedy and more, thereby taking Rishtey is Viacom18’s second Hindi mass these alternative art forms into the homes of entertainment offering in India. It ranked millions. Tapping into this pulsating, dynamic among the top 10 Hindi GECs for the year20. and fresh subculture, MTV Indies is designed Colors & Colors HD A free-to-air channel, Rishtey targets the to bring together the potential of Indian youth. Colors today is synonymous with rural market (which forms ~50% of total MTV Indies is an ‘always on’ platform available entertainment in India. With an engrossing Hindi GEC viewership21). It features the across TV, mobile, web and live events. line-up of distinctive and meaningful choicest shows from the existing Colors 15 Source: #1 for 6 weeks during weeks 41, 2015 to 13, 2016, programming, Colors continued to entertain content library from fiction, non-fiction and BARC, TG: 4+, All NCCS, Market: HSM; Time Period: All days, audiences across all demographics. It reality shows to live events, blockbuster 0200-2559 hrs ranked No. 1 for several weeks in FY1615 films, and lifestyle programmes. Top shows 16 Source: BARC, TG: 4+, All NCCS, Market: HSM; Time Period: All days, 0200-2559 hrs, Weeks 41, 2015 to 13, 2016 Denotes and finished the year ranked a strong on the channel include ‘Balika Vadhu’, ‘Meri Gross Viewership in millions (GVMs), Weeks 44, 2015 to 13, No. 2 (only 0.5% below No. 1 in market Aashiqui Tum Se Hi’ and ‘Swaragini’. 2016 share16). The channel airs globally renowned 17 Source: Denotes Gross Viewership in millions (GVMs), Weeks 44, 2015 to 13, 2016 aspirational and adventurous non-fiction 18 Source: Simplify360 Social media analytics; Rank among genre properties such as ‘Bigg Boss’, ‘Jhalak channels; Total Buzz = FB Buzz + Twitter Buzz + other social Dikhhla Jaa’ and ‘Khatron Ke Khiladi’. The media buzz (incl. Google +, YouTube, etc.) across all properties; FB Buzz = Comments and posts across all properties on channel also strengthened and expanded FB; Twitter Buzz = Total # of mentions across all keywords the ‘Comedy Nights’ franchise by launching MTV India (channel/show/character, etc.) including retweets; Buzz includes ‘Comedy Nights Live’ and ‘Comedy Nights MTV is an iconic youth brand that is irreverent, shows and characters 19 Source: Week 41, 2015 to Week 13, 2016, BARC, TG: 4+, All Bachao’ (roast format). Finite fantasy fiction fun, innovative, passionate, optimistic, NCCS, Market: HSM; Time Period: All days, 0200-2559 show ‘Naagin’ quickly became the No. 1 encouraging and inclusive. It was the No. 1 20 Source: BARC, TG: 4+, All NCCS, Market: HSM; Time Period: show in the genre achieving over 20 million youth channel for the year22. The channel had All days, 0200-2559 hrs, Weeks 41, 2015 to 13, 2016 21 17 Source: BARC, TG: 4+, All NCCS, Market: HSM; Time Period: All impressions in highest rated episodes. several successful shows during the year days, 0200-2559 hrs, Weeks 41, 2015 to 13, 2016 Colors has a strong social media presence such as ‘Love School’ (which became No. 1 22 Source: BARC, TG: 15-21, NCCS ALL, Market: All India; Time and was No. 1 in the social media buzz in within a month of launch23), ‘Splitsvilla’, ‘Kaisi Period: All days, 0200-2559 hrs; Out of Youth focused channels: 18 MTV, Channel V, Bindass, Zing and Zoom seven out of 12 months in FY 2015-16 . Yeh Yaariyan’ and ‘Warrior High’. The channel 23 Source: BARC, TG: 15-21, NCCS ALL, Market: All India; Time Colors HD was the No. 1 HD channel for the owns a highly successful original IP ‘MTV Period: All days, 0200-2559 hrs; Out of MTV, Channel V, year19. Roadies’ which was launched in 2004 and has Bindass, Zing and Zoom 24 Source: Simplify360 Social media analytics; Rank among genre its 13th season ongoing. FLYP@MTV, World’s channels; Total Buzz = FB Buzz + Twitter Buzz + other social 1st MTV themed café, was launched in Delhi media buzz (incl. Google +, YouTube, etc.) across all properties; in December 2015. The café has several FB Buzz = Comments and posts across all properties on FB; Twitter Buzz = Total # of mentions across all keywords distinctive features such as an exclusive menu (channel/show/character, etc.) including retweets; Buzz includes curated by celebrity chef Ranveer Brar, Talent shows and characters 38 Network18 Media & Investments Limited HD thisyear. India introducingseveraldistinctivefeatures: DQGUHGHÀQHG(QJOLVKHQWHUWDLQPHQWJHQUHLQ &RORUV,QÀQLW\ZDVODXQFKHGLQ-XO\ &RORUV,QÀQLW\ (in March,2016 JHQHUDWLRQV,WÀQLVKHG)<UDQNHG1R shows suchas‘Friends’ arepopularacross mindspace throughtheyear. Itsmarquee the channelcontinuedtocaptureviewers’ ‘Suits’, ‘Wipeout’and‘ImpracticalJokers’, comedy channel.Withshowssuchas LV,QGLD·VÀUVWKRXU(QJOLVKODQJXDJH Comedy Centralwaslaunchedin2012and Comedy Central channel rankedNo.1inthegenreFY16 2005, Vh1hasgrowntremendously. The and lifestyle.SinceitsinceptioninJanuary music,Hollywood,popculture International Vh1 providesviewerswiththeirdailydoseof Vh1 full year channel upgradeditsfeedtoHDthisyear. ‘American Idol’and‘XFactor UK’.The as ‘Britain’sGotTalent’, ‘Asia’s GotTalent’, talent huntsfromacrosstheworldsuch Music Awards. Vh1alsoairsthebiggest Awards, GoldenGlobeAwards andEurope awards suchastheGrammyAwards, Brit reggae, hiphop,pop,jazz,etc.andworld music genressuchasEDM,punk,rock, Indian audiencesthebestofInternational Vh1 hasbeencommittedtobringing English Entertainment few hours after theyairinternationally few hoursafter Instant Premieres –screeningepisodesa are usedtobingewatching back-to-back fortoday’sviewerswho Essential viewing–3episodesaired 27 . Thechannelupgradeditsfeedto 26 ) andrankedNo.2forthe 25 . engaged with kids through the year by way engaged withkids throughtheyearbyway touch pointsbeyond TV. Nickelodeonalso kids byestablishingitscharactersthrough Nickelodeon hasbeenabletoconnect with eversince. leading showsinthecategory 2015. Theshowhasremainedone ofthe just twoweeksofitslaunchinNovember within inthecategory topped thecharts and 'Shiva'.Thehome-grownshow–'Shiva' shows suchas‘MotuPatlu’, ‘NinjaHattori’ ¶)XQQ\5XOHV·KRVWVDQDUUD\RINLGV IDYRXULWH category fortheyear category Nickelodeon istheNo.1channelinKids Nickelodeon Tank’ and‘OrangeIstheNewBlack’. 5XOHV·¶)DUJR·¶%HWWHU&DOO6DXO·¶6KDUN line-up withshowssuchas‘MyKitchen &RORUV,QÀQLW\KDGDVWURQJSURJUDPPLQJ Kids Entertainment called ‘TheStage’ English singingtalentshowinIndia SURJUDPPLQJLQFOXGLQJWKHÀUVWRULJLQDO A slateofinnovativeoriginal Karan Johar Co-curated byyouthiconsAliaBhattand 28 . The channel where . Thechannelwhere fans community onFacebook hasover1.2million interactivities throughtheyear. TheNickindia 173 videosthatengagekidsthroughvarious month. Thewebsitehosts196gamesand close to1.2millionaveragepageviewsina channel's website,Nickindia.comreceives across multiplecitiesinthecountry. The Contact Program reachedoutto150schools clean.NickelodeonSchool their surroundings and empoweredkidstodotheirbitkeep Good’ wasanothercampaignthatengaged ‘Together yourGift’. ‘Nickelodeon Lift for HardwithMotuPatlu’ and Hunt’, ‘Party of campaignssuchas‘MotuPatlu Hero 29 28 27 26 25 2016 to13, Cities; TimePeriod: Alldays,0200-2559hrs,Weeks 9, 6RXUFH %$5&7* 1&&6$%0DUNHW 0HJD 2015 to13,2016 Cities; TimePeriod: Alldays,0200-2559hrs,Weeks 41, 6RXUFH %$5&7* 1&&6$%0DUNHW 0HJD Facebook page Socialmediaanalytics– Source :Simplify360 %$5&LQGLYLGXDOUDWLQJVDUHDYDLODEOH hrs) forweeks41,2015to13,2016(period forwhich 6RXUFH %$5& $OO,QGLD1&&6$%& 41, 2016to13, Cities; TimePeriod: Alldays,0200-2559hrs,Weeks 6RXUFH %$5&7* 1&&6$%0DUNHW 0HJD 29 . MANAGEMENT DISCUSSION &ANALYSISMANAGEMENT DISCUSSION Annual Report 2015-16 Annual Report 39 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW audience engagement through on-ground FKDQQHOLVDOHDGHULQERWKÀFWLRQDQG and tactical activations. Its internationally QRQÀFWLRQJHQUHV33. It differentiates itself acclaimed shows such as ‘Dora the on the basis of a strong programming mix Explorer’, ‘Bubble Guppies’, ‘Go Diego Go’ DQGSXVKHVWKHERXQGDU\RQQRQÀFWLRQ foster motor memory, maths and language programming by running renowned formats. development in a child and have emerged Top shows include ‘Agnisaakshi’, ‘Putta as an integral part of every pre-schooler’s Gowri Maduve’, ‘Lakshmi Baaramma’ and life. The channel also caters to teenagers ¶.XOYDGKX·LQÀFWLRQDQG¶6XSHU0LQXWH· in the latter half of the day with the Teen ‘Dancing Star’ and ‘Maja Talkies’ in non- Nick block which showcases international ÀFWLRQ&RORUV.DQQDGDZDV1RLQVRFLDO sitcoms such as ‘Supa Ninjas’, ‘Teenage media buzz for every month in FY1634. Mutant Ninja Turtles’ and ‘Penguins of Madagascar’. Colors Bangla Nick HD+ Colors Bangla matches the distinctiveness Nick HD+, the 1st Kids HD entertainment of the rich Bangla culture with qualitative channel was launched in December 2015. DQGFRQWHPSRUDU\SURJUDPPLQJ7KHÀFWLRQ ,WVKRZFDVHVWRSVKRZVLQKLJKGHÀQLWLRQ programming focus is strongly on family airing select content from Nick, Sonic GUDPDVDQGORYHVWRULHV,QQRQÀFWLRQWKH Sonic and Nick Jr. with some exclusive content channel dovetails hard-hitting innovative Sonic serves the right combination of from Viacom. It showcases a wide array original IPs with strong international formats. action and comedy. The channel reaches of content from the local chart-busters Signature shows in FY 2015-16 included more than 10 million kids every week30. such as ‘Motu Patlu’ and ‘Pakdam Pakdai’ 'Maa Durga' (a mythological show on Sonic maintained its lead over its closest to the evergreen favourites such as ‘Ninja Goddess Durga) and 'Abbulish' (a fun-based competitor Disney XD with compelling Hattori’ to international heavyweights such celebrity game show). shows such as ‘Pakdam Pakdai’, ‘Supa as ‘Shaun the Sheep’, ‘Dora the Explorer’, 6WULNDV·¶,GDWHQ-XPS·DQG¶3RZHU5DQJHUV· ‘SpongeBob Square Pants’ and ‘Power It has a highly engaging and interactive 5DQJHUV·$GGLWLRQDOO\WKHUHDUHVKRZV online community through www.sonicgang. telecast exclusively on Nick HD+ such as com, and 2.12 lakh fans on Facebook. The ¶%LJ7LPH5XVK·¶0DUYLQ0DUYLQ·¶.XQJ)X Colors Marathi website boasts over 130 games and 141 Panda’ and ‘Zack and Quack’. Colors Marathi is a family entertainment videos that kids can engage with. channel that mirrors the cultural ethos and The website has fun engagements such as Regional Entertainment spirit of Maharashtra through a range of unique ¶3RVHOLNH2JJ\·¶6RQLF+ROL5DQJ3DQFK· differentiated content created to enhance the and ‘Pakdam Pakdai Halloween Quiz’. Sonic In 2015, Viacom18 rebranded its original consistently engages with kids through GECs acquired from ETV in 5 languages. 306RXUFH %$5& $OO,QGLD1&&6$%& FDPSDLJQVVXFKDV¶6HOÀH.KHFKR3UL]HV This rebranding came under the Colors hrs) for week 13, 2016 Jeeto contest’, ‘Jo Dekhega Woh Jeetega’, umbrella, which was done to improve 316RXUFH %$5& $OO,QGLD1&&6$%& hrs) for week 13, 2016 ‘Oggy and Doggy ki Double Masti’, etc. monetisation from the whole array of 326RXUFH %$5&7* $OO1&&60DUNHW .DUQDWDND channels across platforms. This move by Time Period: All days, 0200-2559 hrs, Weeks 41, Colors was also done keeping in mind the 2015 to 13, 2016 336RXUFH %$5&7* $OO1&&60DUNHW .DUQDWDND increasing intensity of competition. Time Period: All days, 0200-2559 hrs, Weeks 41, Nick Jr. / Teen Nick 2015 to 13, 2016 Nick Jr. is ‘the smart place to play’ that 346RXUFH 6LPSOLI\6RFLDOPHGLDDQDO\WLFV 5DQN among genre channels; Total Buzz = FB Buzz + believes in ‘education’ and ‘entertainment’ Twitter Buzz + other social media buzz (incl. Google going hand-in-hand and is aimed at young +, YouTube, etc.) across all properties; FB Buzz parents and pre-schoolers. The channel Colors Kannada = Comments and posts across all properties on FB; Twitter Buzz = Total # of mentions across all reaches out to over 3 million kids every Colors Kannada is ranked the No.1 Kannada keywords (channel/show/character, etc.) including week31. The channel strengthened its GEC every week in FY 2015-1632. The retweets; Buzz includes shows and characters 40 Network18 Media & Investments Limited Mirchi MusicAwards. ship)andthe awards event(heldonacruise Awards), oneofthebiggestMarathimovie aired IMFFA MarathiFilmFestival (International the peopleofMaharashtra.Thechannelalso Queen 2016’,etc.hasstrongtractionwith and‘MejwaniKitchen ‘Ganpati BappaMorya’ Vijay Tendulkar’s playonfemaleexploitation), ÁDJVKLSVKRZVVXFKDV¶.DPDOD· EDVHGRQ 2,987 GTVTs National Geographic Channel(NGC)at at3,762GTVTsahead ofDiscovery and with maximumviewershipof4,106 GTVTs, genre dominating thefactualentertainment TV18endedtheyearonahigh, History TV18 History widespread reach. programming, presentationand the channelprovesitsmettlewithquality rich culturaltraditionoftheOriyapeople, audiences whilereverberatingwiththe channel.Enthralling mass entertainment &RORUV2UL\DLV2GLVKD·VÀUVWQDWLYHODQJXDJH Colors Oriya and continuedtoenthralaudiences. Colors Gujaratihassuccessfullymadeinroads offering suchas‘Suri’and‘Food ThiGujarat’, and differentiatedcontent.Withqualitycontent the traditionsofGujaratthroughitsinnovative distinctive totheGujaraticommunity. Itechoes HQWHUWDLQPHQWFKDQQHOWKDWUHÁHFWVWDVWHV Colors Gujaratiistheonlygeneral Colors Gujarati is astrongNo.2channelinitsgenre family viewingexperience.ColorsMarathi Factual Entertainment 36 . 35 . Its . Its among viewersinthegenre. constituency students, seenasanimportant helped increasebrandsaliencyamong providing forgreatcontent,theinitiative length andbreadthofthecountry. Besides than 1,500schoolsin42quizzesacrossthe ofstudentsfrommore saw participation with CBSEforitsannual‘HeritageIndiaQuiz’ TV18’spath-breakingpartnership History WHOHYLVLRQDQGGLJLWDOPHGLD,QLWVÀIWK\HDU wasnotjust restrictedto ‘Making History’ LQWHUDFWLYHQRWLÀFDWLRQV like VideoonDemand,live-streamingand viewer interestthroughexcitingnewfeatures half amilliondownloadsandcaptivated TV18appcrossed agnostic, theHistory belongs tocontentwhichisplatform tothebeliefthatfuture Holding true (14,000). NGC (21,000)andDiscovery of followersonTwitter (2,52,000)vis-à-vis media, leadingwiththemaximumnumber The channelalsodominatedonsocial shares. than 18millionimpressionsand1,52,000+ TV18’s Facebook page, itreceivedmore videosonHistory format well receivedshort has beenbreakingrecords.Oneofthemost board. Sinceitslaunch,‘OMG!Yeh MeraIndia’ social media,creatingalotofbuzzacrossthe across TV, radio,outdoor, trade,digitaland by a360degreemarketingpushthatspread facts andpeopleinIndia.Itwassupported ofamazing took viewersonanexcitingjourney Abhishek,theshow celebrity hostKrushna far –‘OMG!Yeh MeraIndia’.Presented by the channel’sbiggestlocalproductionsso FY 2015-16witnessedthelaunchofone to reckon with by delivering a series of to reckonwithby delivering aseriesof cinema. Thestudio hasemergedasaforce through differentiatedandconcept-driven ZLWKVKDSLQJWKHQHZ,QGLDQÀOPLQGXVWU\ Viacom18 MotionPictureshasbeen credited Viacom18 MotionPictures Filmed Entertainment carriage andplacement. carriage by strategicallymanagingkeyaspects of class availabilityandreachofallchannels DTH, HITSandIPTV. Italsoensuresbest-in- suchascable(digitalandanalog), platforms TV18, andotherbroadcasteracrossvarious distribution ofthechannelsfromViacom18, Domestic: with threeclearmandates. for TV18,Viacom18andotherbroadcasters IndiaCast managescontentmonetisation IndiaCast 5RJXH1DWLRQ·DQG¶3DUDQRUPDO$FWLYLW\· ‘Terminator: Genisys’,‘MissionImpossible: DVWHOODUOLQHXSRI3DUDPRXQWÀOPVVXFKDV Girl’ (Marathi).ThestudiodistributedinIndia production with‘Black’(Bengali)and‘Poshter is Back’.Thestudioexpandedintoregional ActionFilmAward’ for‘Gabbar Entertaining ‘Most Straw’ andBigStarEntertainment’s ChoiceAward’ for‘Margaritawitha ‘Editor’s multiple accoladesincludingtheStardust Ka Punchnama2’.Duringtheyear, itwon The MountainMan’,‘Drishyam’and‘Pyar such as‘MargaritawithaStraw’,‘Manjhi– FULWLFDOO\DQGFRPPHUFLDOO\VXFFHVVIXOÀOPV 36 35 2,987 GTVTS GTVTS ANDNGCAT DISCOVERY AT 3,762 GTVTS, AHEADOF VIEWERSHIP OF4,106 GENRE WITHMAXIMUM FACTUAL ENTERTAINMENT DOMINATING THE THE YEARONAHIGH, HISTORY TV18ENDED Content AssetMonetisation 6RXUFH %$5&:HHN0HJDFLWLHV1&&6$% 2015 to13,2016 Time Period: Alldays,0200-2559hrs,Weeks 41, %$5&7* $OO1&&60DUNHW 0DKDUDVKWUD*RD 15+, AllIndia,Days, Avg Weekly GTVTs MANAGEMENT DISCUSSION &ANALYSISMANAGEMENT DISCUSSION IndiaCastmanagesdomestic Annual Report 2015-16 Annual Report 41 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW International: IndiaCast monetises content/ INTO ITS SIXTH programmes for TV18, Viacom18 and YEAR OF OPERATIONS, other broadcasters, across territories and Moneycontrol.com platforms. IndiaCast reaches the Indian Moneycontrol continues to be the leader in the FIRSTPOST, INDIA’S diaspora spanning 87 countries with its ÀQDQFHFDWHJRU\DFURVVDOOSDUDPHWHUVRQWKH FIRST DIGITAL-ONLY premier offering – Colors channel. With a web and mobile. This year multiple new initiatives NEWSROOM, CONTINUES rich content library of 16,000 hours across were taken on the web and mobile front, including genres, IndiaCast syndicates content from the launch of new android and iOS apps, broker TO BE THE BIGGEST the group in more than 140 countries in over research section and addition of NCDEX prices. IN ITS GENRE AND ODQJXDJHV LQFOXGLQJ+HEUHZ5XVVLDQ Following the launch of the new app, engagement GROWING. Serbian, Bosnian, Albanian, Macedonian, improved 32% and the site recorded close to 1 Kazakh, Swahili, Spanish, and English billion page views/month37. among others). News18.com (Formerly ibnlive.com) Digital: IndiaCast also manages digital Firstpost.com 1HZVLVDPRQJVWWKHWRSÀYHPRVWYLVLWHG initiatives of the group and also both linear Into its sixth year of operations, Firstpost.com, English news websites in India. It underwent and non-linear channel distribution and ,QGLD·VÀUVWGLJLWDORQO\QHZVURRPFRQWLQXHV a major transformation in 2016 and migrated distributes channels to online sites, OTT to be the biggest in its genre and growing. It to a new domain to reinforce the vision of the platforms, and value added services (VAS) consolidated its position as the go-to place for GLJLWDOÀUVWVWUDWHJ\$VSDUWRIWKLVLQLWLDWLYH players for mobile consumption. informed breaking opinion as demonstrated by the website has been revamped and given the best-in-industry average time spent of 10 DIUHVKORRN7RFRPSOHPHQWWKHGLJLWDOÀUVW Digital Content minutes and 34 seconds. The average pages strategy, the mobile app has been given a visited per session grew by 2.28% to 2.93% new avatar and introduced innovative features Network18’s digital content and commerce page/session, while the bounce rate reduced to bring the entire news ecosystem to one VHJPHQWLQFOXGHVDGLYHUVLÀHGSRUWIROLR to 66.38%, a testimony to the stickiness of the common place. Good viewership amongst of brands catering to a wide range of content on Firstpost. Firstpost’s website gained Cricket fans was witnessed during the T20 interests and services, including news and 6.9 million37 average unique visitors per month World Cup where the Facebook chat feature HQWHUWDLQPHQWPDUNHWVDQGÀQDQFHRQOLQH and 35 million37 average monthly page views. was introduced. With Facebook instant articles shopping and ticketing, and mobile phone and Google accelerated mobile pages, readers services and applications. Its digital content Firstpost’s mobile site gained 5.9 million37 have the best reading experience across and commerce segment encompasses average unique visitors per month along different devices. with 24 million37 average monthly the content business that spans page views. On the social media front, websites and mobile applications Firstpost.com saw robust growth by having covering general and business news, more than one million followers on Twitter Pradesh18.com (formerly News18.com) entertainment, technology and sports and its Facebook likes stood at 6.8 lakhs. A one-of-its-kind digital destination for regional ,WZDVRQHRIWKHÀUVWSXEOLFDWLRQVWRJRRQ content in multiple languages, Pradesh18 is in the e-commerce marketplace and the Google AMP platform. Quick adaptation build phase. Formerly News18, towards the properties businesses that include to FacebookLive, Instant Articles and end of the year, the site was revamped and online shopping and ticketing making our content available across a host renamed to Pradesh18, which communicates of aggregator apps are some of the steps regional content. The website has been given a Network18’s digital sites attracted initiated to go where the market is. fresh look, a cleaner interface and responsive more than 27 million unique visitors design. The mobile app has been completely and continue to be leaders in several With video consumption emerging as a big revived and several interesting features segments trend in online content consumption, Firstpost like choice of languages, personalisation has added a scalable multi-media capability for of news, favourite categories to follow and producing quality video content. The coming FXVWRPLVDWLRQRIQRWLÀFDWLRQVKDYHEHHQ year will see a slew of initiatives to strengthen introduced. existing verticals such as F.Cricket, Tech2 and Faking News and launch new products across 37 Google Analytics languages and demographies. 42 Network18 Media & Investments Limited network and exclusive content around reality network andexclusive contentaroundreality been designedtohave contentfromthe geographies anddemographics,VOOT has strategy tocaterviewersacross Keeping withtheethosofprogramming Viacom18’s exclusivedigitalvideodestination. VOOT waslaunchedinMarch2016 as VOOT existing market! what it’sbestat–creatingnewspacesinthe spaces inthemarket,it’salsolookingtodo isgunningnotjustforthevacant always, Burrp again.Like food-tech playerinthecountry a largerscalewithviewofbeingthelargest ticketing andtransactionsintheF&Bspaceon aimstogetinto players inthespace.Burrp viatechnologyintegrationswithother platform and bookdiningexperiencesaswellonthe tables nowallowsuserstoreserve Burrp Burrp. year asapilottotestthetransactionmodelon and gaveuserstheabilitytobookticketslast listings, the marketinNewYears’ Eveparty ecosystem inthecountry. alsoleads Burrp thefood-tech and hasconstantlydisrupted many innovationsinthefood-techindustry hascontributedto strength-to-strength. Burrp has stoodthetestoftime,andgrownfrom many shakeupsacrossthelastdecade,Burrp that hasseen places toeat.Inanindustry in 12Indiancitiesandlistsmorethan60,000 present iscurrently segment in2006.Burrp introducing consumertechnologyintheF&B spaceby pioneer intheIndianfooddiscovery wasthe recommendation engine.Burrp isafoodandrestaurantsearch Burrp Burrp to alldigitalcontentofNetwork18. its contentstrength,providesagoodwindow showcasing Network18’s aggregatorplatform, In.com operations forsixoutofeightIPLteams. also managesticketingaswellon-ground fortheICCT20World Cup2016.It partner experience. BookMyShowwasthesoleticketing launched itsownwallettoenhancecustomer \HDU'XULQJWKHÀQDQFLDO\HDU%RRN0\6KRZ impressive growthof82%overtheprevious its mobileapplicationduringFY16,clockingan and 7.8 millionticketspermonthonitsportal month. BookMyShowsoldanaverageofover recorded anaverageof71millionvisitsper As ofMarch31,2016,bookmyshow.com Bookmyshow.com WK%&65DWQD$ZDUGVLQ0DUFK ‘Trendsetter inShoppingChannels’ atthe daily. HomeShop18hasbeen acclaimed asthe its callcentrereceivesabout1,40,000calls which 58%arefromrepeatcustomers,and that 31,500transactionstakeplacedaily, of demonstratedbythefact success isfurther bouquet ofFTA channels.HomeShop18’s addition ofaHindichanneltotheDDDirect reach insmallertownshasincreasedwiththe India, 17%oftheminTierIIandIIItowns.The country. Itdeliversto9,563pincodesin across 1,662citiesandtownsthe base ofover17.9milliononTVandweb HomeShop18 nowhasacumulativecustomer HomeShop18 OTT service. OTT of originalshows,atlaunch,foranyIndian of KidscontentinIndiaandthelargestnumber shows. Itwillalsohavethelargestrepository to widetargetaudiences. content acrossdifferent genres,reachingout Interiors’. Thesepublicationsoffer varied ‘Overdrive’, ‘BetterPhotography’and ‘Better publications thatinclude‘Forbes India’, Network18 hasarangeofpopular Print/Publication Business E-commerce Marketplace&Properties less traveled. walks oflifewhohavetakentheroad 30 celebratedyoungachieversfrom different in thecountry. Finally, Forbes India30under of themostillustriousbusinessorganisations some leaders oftodaywhoarespearheading Leadership Awards honouredtransformational )RUEHV,QGLD·VÁDJVKLSSURSHUW\)RUEHV,QGLD discuss thelifecycleofanentrepreneur. to today whocametogetheronaplatform RIWKHÀQHVWHQWUHSUHQHXUVLQWKHFRXQWU\ Forbes IndiaEntrepreneurshipSummitsaw ofdifferentbusinesssectors. opportunities todiscusschallengesand the country together almost60CEOsfromacross in theIndianbusinessindustry, bringing event, wasoneofthebiggesttalkingpoints ‘CEO Dialogues’,aForbes Indiasignature India Giants’ (thebestbusinessmenfromSouth public companies)and‘TheSouthern launched ‘TheSuper50’(thebestIndian today.country Thisyeartheteamalso prestigious businesspublicationsinthe Forbes Indiaisamongst themost Forbes India MANAGEMENT DISCUSSION &ANALYSISMANAGEMENT DISCUSSION Annual Report 2015-16 Annual Report 43 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW with Mercedes Benz India, Better Photography Content Creation and Production conducted a unique contest viz ‘Frame the Overdrive Star’ for photo and auto enthusiasts. Over Overdrive through its unique concept of 10,000+ quality images were generated ‘Live Life in Overdrive’ has further boosted during the contest, which were later exhibited its engagement amongst its readers at each Mercedes Benz showroom. Better through various events. In December, Photography has garnered more than 2.49 Colosceum Overdrive launched its app on Google lakh likes on Facebook. During the year, Colosceum has produced Play Store and iOS and some 10,000 VHYHUDOSRSXODU79VKRZVDFURVVÀFWLRQ readers have downloaded it. Overdrive also DQGQRQÀFWLRQFDWHJRULHV,QWKHQRQÀFWLRQ successfully organised the 16th edition of FDWHJRU\WKHVHLQFOXGHG,QGLD·VÀUVWORYH the coveted CNBC Overdrive Awards and Better Interiors reality series on Hindi GEC ‘Power Couple’, Automotive Dealership Excellence Awards Better Interiors enjoys the respect of and LFRQLF\RXWKUHDOLW\79VKRZV¶5RDGLHV· in December 2015 and February 2016 shares a good rapport with leading industry presented in a new format, ‘Splitsvilla’ and respectively. Overdrive’s social presence ÀUPVDUFKLWHFWVGHVLJQHUVDQGKDVDURVWHU a regional show ‘Nam Deshad Kathe’. Under spans 8.15+ lakh likes on Facebook, over spanning renowned clients like Godrej & WKHÀFWLRQFDWHJRU\&RORVFHXPFUHDWHG 33,000 Twitter followers, with over 1 lakh %R\FH+ 5-RKQVRQ+DIHOH1LWFR3LGLOLWH popular Hindi shows ‘Dahleez’ and youth YouTube channel subscribers to date. :KLUOSRRODQG5R\DOH7RXFKH7RFHOHEUDWH show ‘Twistwala Love’ and ‘Secret Diaries’. the ‘Better Interiors - Kitchen Special Edition’, Colosceum has now produced over 2,200 it hosted a small gathering for architects hours of regional, national and international and interior designers at (B/S/H) Siemens programming across media. Better Photography appliance experience centre. Better Photography organised the 7th edition of the most renowned ‘Wedding Photographer of the Year’ awards. This year, in association 44 Network18 Media & Investments Limited Network18 duringFY2015-16. offeringsduringtheyear.Network18 continuedtowinaccoladesacrosscategoriesforitsexemplary Following isalistofawar (During2015) Awards andRecognitions wr aeoyWinner BestContinuingCoveragebya Awards 7KH5DPQDWK*RHQND([FHOOHQFHLQ-RXUQDOLVP Exchange4media NewsBroadcastingAwards %$5&%XVLQHVV1HZV&KDQQHORIWKH FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW Award Category Winner ,35&& Product and Promotion in Manjhi - The Mountain Man Entertainment, education, sports and lifestyle sector MWAS Silver - Product and Promotion in Margarita With a Straw Entertainment, education, sports and lifestyle sector MWAS Bronze - Integrated Campaign Award Margarita With a Straw Abbys Digital Abbys Ceat - MTV Chase the Monsoon Abbys Media Abbys MTV Indies - Channel launch Abbys ,QWHJUDWHGFDPSDLJQOHGE\35 0795RFN7KH9RWH Abbys Best use of Content Creation 'XUH[0795H[7DON Abbys Best use of Experiential MTV Campus Diaries Abbys Best use of Experiential 0795RFN7KH9RWH Appies Asia 2015 Effective cause marketing MTV Junkyard Project Spikes Asia Public Awareness 0795RFN7KH9RWH Maddies Best Campaign MTV App Maddies Best cross media integration 'XUH[0795H[7DON Maddies Best mobile applications MTV Indies App Maddies Best Blogs MTV India Maddies Best use of video 'XUH[0795H[7DON India Marketing Awards 2015 Best Extension Launch MTV Indies - Channel launch Promax Asia 2015 Best Script MTV App Film Promax Asia 2015 Best Script 'XUH[0795H[7DON Promax Asia 2016 Best Interstitial MTV App Film Promax Asia 2017 Best Interactive Promo 'XUH[0795H[7DON Promax Asia 2018 Funniest Spot MTV App Film Promax Asia 2019 Best Sponsor integration 'XUH[0795H[7DON Promax Asia 2020 Best Print Ad 079,QGLHV5LEELW Promax Asia 2021 Best Print Campaign 079,QGLHV5LEELW CEF Events and promotions - Creativity MTV Campus Diaries CEF Events and promotions - Creativity MTV Junkyard Project CEF Events and Promotion - Cause MTV Junkyard Project marketing CEF BTL Activities - Innovation MTV Junkyard Project CEF Television - Creativity MTV Indies - Channel launch CEF Television - Innovation MTV Indies - Channel launch CEF BTL Activities - Innovation MTV Campus Diaries Prime Time Best Extension Launch MTV Indies - Channel launch CMO Asia Most Admired Youth Brand MTV India DMAi Marketing Innovation in Social MTV Junkyard Project 46 Network18 Media & Investments Limited society. For Network18,businesspriorities especially thedisadvantagedsectionsof help elevatethequalityoflifemillions, &RPSDQ\7KH&RPSDQ\·V&65LQLWLDWLYHV businessstrategyofthe the long-term 5HVSRQVLELOLW\ &65 LVHPEHGGHGLQ At Network18,CorporateSocial Corporate SocialResponsibility Consolidated Performance Consolidated Performance iac ot 9. 132 -16% 19% 41% 113.2 75.2 64.8 95.1 25% 271.2217.8 89.7 8% 91.7 2,973.6 3,223.8 Finance Cost Depreciation EBITDA Other Income 2SHUDWLRQ3URÀW Operating Expenses 5HYHQXHIURPRSHUDWLRQV Particulars xetoa n ro eidepneies - (1,119.5) - Exceptional andpriorperiodexpenseitems 3URÀWEHIRUHH[FHSWLRQDODQGSULRUSHULRGLWHPV 3URÀW /RVV EHIRUHWD[ osbfr a (09 (687.5) (619.7) (90.9) - Loss beforetax Exceptional expenseitems osbfr xetoa tm 9.) (67.8) (90.9) Loss beforeexceptionalitems iac ot5. 5. -8% 57.5 52.8 Finance Cost ercain . 45 29% 4.5 5.8 (32.3)(5.8) Depreciation EBITDA te noe 90 24 -27% 12.4 9.0 Other Income prto os(13 (18.2) (41.3) Operation Loss prtn xess186 25 17% 92.5 108.6 Operating Expenses 5HYHQXHIURPRSHUDWLRQV Standalone Performance Financial Performance Particulars Operatinglossincreasedby 5HYHQXHIURPRSHUDWLRQVZDVORZHU FY15 to crores fromalossof reduction inoperatingexpenses events business.Thisalsoresultedin discontinuance of13magazinesandthe than thepreviousyearmainlydueto ` 41.3croresinFY16 ` 18.2croresin ` 23.1 and deepenitssocialengagements. of socialresponsibilitytoempowerpeople tobuildonitstradition to continueitsefforts Network18 aims employment opportunities. by promotinghealthcare,educationand people’slives seeks totouchandtransform development ofpeopleandcommunities.It co-exist withsocialcommitmentstodrive Financecostdecreasedfrom OtherincomeinFY16waslowerthan 2015-16 2015-16 income and business support services income andbusinesssupport due toreductionininterestanddividend previous yearby borrowing byissuingcommercialpapers borrowing UHÀQDQFLQJRIKLJKFRVWGHEWVDQG 57.5 croresto ,0. ,2. 9% 3,403.3 3,126.6 7. 5. 17% 179.5 153.0 64 94 194% 29.4 86.4 8. (1,090.1) 86.4 737. -9% 67.3 74.3 ` 2014-15 52.8croresdueto 2014-15 ` 3.4croresmainly 2015 over2014 2015 over2014 ( ( ` ` ` incrores) incrores) Growth in Growth in employee achievements.TheCompany torecogniseand celebrate a platform awards, etc.provide awards, longservice DQG5HFRJQLWLRQLQLWLDWLYHVVXFKDVVSRW E\WKHLUPDQDJHUV$QDUUD\RI5HZDUGV SHUIRUPLQWKHLUFXUUHQWUROHVDQGLGHQWLÀHG bridge theskill-competencygaprequiredto to anddevelopmentopportunities learning teams. Employeesareprovidedmultiple thedevelopmentoftheir and support conversations inaconduciveenvironment Managers areencouragedtohavecandid toassess employee performance. forum Management Systemprovidesanobjective functions. Lakshya,theonlinePerformance across through focusedgoal-settingcarried channelising theenergiesofworkforce islaidon institutions. Importance andgeneralmanagement top journalism talent hasresultedincollaborationwith level strengthenentry Its focustofurther technology andallotherenablingfunctions. talent acrossthegamutofeditorial,sales, committed toattract,developandretaintop asset –itshumancapital.Thegroupis ofitssinglelargest knows theimportance business differentiator, Network18group In anerawherethequalityoftalentiskey Development Human Resource 3URÀW%HIRUH7D[ EHIRUHH[FHSWLRQDODQG Financecostreducedfrom 2SHUDWLQJSURÀWVJUHZE\WR Network18consolidatedrevenuesfor papers byissuingcommercial and borrowing UHÀQDQFLQJRIKLJKFRVWGHEWV crores inFY15to by 9%overthepreviousyear crores inFY15to prior perioditems)increasedfrom crores inFY15 ` FY16 stoodat by 194% 179.5croresinFY16from MANAGEMENT DISCUSSION &ANALYSISMANAGEMENT DISCUSSION Annual Report 2015-16 Annual Report ` 3,403.3crores,growing ` ` 95.1crores,dueto 86.4croresinFY16 ` 113.2 ` 153.0 ` 29.4 47 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW understands the need to build a more Key risks is linked with the sale of advertisements cohesive work and has an annual calendar The Company faces a series of risks in its through television channels, which is of employee engagement initiatives which operations, including: dependent on the overall macroeconomic range from celebrating key festivals to and industry conditions, market trends, corporate quizzes. There is emphasis on Digitisation Regime public policy and government regulation, H+5DQGYDULRXVRQOLQHV\VWHPVKDYHEHHQ Timely implementation of the government’s viewership, budgets of advertisers, among made available to make the processes more phased digitisation regime is critical to the other factors. TV advertisement sales user-friendly for employees. In FY17, the long-term growth of the television industry. are also threatened by abrupt termination Company is going to focus on formalising With the completion of the process of of contracts by advertisers, limits on the organisation structure in line with the seeding of set-top boxes for Phases I and II, advertising time, advertising shift to new vision and growth strategy. There shall the challenge now is to boost last mile billing media formats such as digital, etc. EHIXUWKHULPSHWXVRQ+5DXWRPDWLRQ and packaging, which will help multi-system through introduction of SAP. Besides operators (MSOs) increase the average Third-Party Relations/JV/Partnerships furthering employee engagement across the UHYHQXHSHUXVHU $538 DQGDOVREHQHÀW Network18 has relationships and JVs RUJDQLVDWLRQLGHQWLÀFDWLRQDQGGHYHORSPHQW the broadcasters. In this scenario, channels with external partners, whose long-term of future leaders is also going to be key with weak content could stand to lose out continuation it cannot assure. Sudden focus areas. As on March 31, 2016, on account of poor consumer demand. termination or deterioration of these Network18 had 503 employees on its rolls. relationships may materially and adversely Regulatory Environment DIIHFW1HWZRUNRSHUDWLRQVDQGÀQDQFLDO Risk Management The Indian broadcast industry is heavily condition. The success of any future JVs Network18 maintains a robust system regulated across a multitude of areas and strategic relationships with third parties of internal controls, commensurate with including distribution, taxation, etc. Any is also not assured, as every relationship the size and complexity of its business policy changes can have a material impact comes with its own set of risks, including operations. The system provides, inter on the economic and strategic direction of failure to recover investments made in such alia, a reasonable assurance of protection the industry and may restrict the Company’s initiatives. against any probable loss of the Company’s ability to do business. assets as a result of misuse by those who Brand Recognition and Popularity DUHLQDSRVLWLRQWRLQÁXHQFHWKHZRUNLQJ Competitive Forces Network18’s brand strength is one of its of business verticals of the organisation. It The emergence of platforms such as the biggest assets and its success depends ensures that the transactions of its business internet, mobile and radio is causing a upon the popularity and recognition of operation are recorded in all respects in a partial shift of advertising revenue away its brands, as well as its ability to deliver fair and transparent manner. The Company from television. With their greater local original and compelling content and services KDVDQH[WHUQDODQGLQGHSHQGHQWÀUPRI connect and more measurable reach index, that attract and retain viewers. Failure to Internal Auditors which scrutinises its such media are drawing considerable sustain the brands, or excessive expenditure ÀQDQFLDOVDQGRWKHURSHUDWLRQV7KH,QWHUQDO advertising proportion from sectors such as incurred in doing so, could seriously $XGLWRUVUHSRUWWKHLUÀQGLQJVGLUHFWO\WRWKH FMCG and BFSI. LPSDFW1HWZRUN·VEXVLQHVVDQGÀQDQFLDO Audit Committee. These are then forwarded operations. to concerned departments/ business Advertising Revenue verticals for taking corrective measures. Advertising being a major source of revenue Risk Mitigation Strategy Internal audit also ensures that applicable generation, any decline in advertising Network18 has an exciting portfolio of laws are complied with in true spirit. revenue could adversely impact the quality content and is continuously working Company’s revenue and operating results. on strengthening its content bouquet to reap Network18’s primary revenue generation WKHEHQHÀWVRIGLJLWLVDWLRQ 48 Network18 Media & Investments Limited ensure costeffectiveness. strengthening itsprocessesandsystemsto by expandinginthedigitalspace.Itisalso ofrevenue and focusingonotherforms The Companyisalsoexpandingitsportfolio the changedenvironment. RSHUDWLRQDOHIÀFLHQF\DQGHIIHFWLYHQHVVLQ place toensurecontinuedhighlevelsof changes. Strongriskmechanismsarein inthecontextofpolicy the industry dynamicsof it withthetransforming evolving itsoperationalstrategytoalign environment, Network18isconstantly abreast ofthechangesinregulatory ofremaining Cognisant oftheimportance circumstances. in anywaybeingcompromisedunderany remains protectedandmaintained,without This ensuresthatNetwork18’sreputation are requiredtoadhereatalltimes. organisation policies,whichitsemployees management systemandstringent and external auditteamscontinuously and external focused riskmitigationstrategies.Internal regularly monitorstherisksandhasinplace to itsbusinessrequirements. controlssystemsthatarealigned internal Network18 haswelllaid-outandexhaustive Internal ControlSystem Network18 has in placeastrongrisk Network18 systems. DGHTXDF\DQGHIÀFDF\RIWKHLQWHUQDOFRQWURO Committee meetsperiodicallytoreviewthe requirements.TheAudit and regulatory policies with operatingsystems,internal Network18 andthestatusofcompliance controlenvironmentacross of theinternal monitor theadequacyandeffectiveness MANAGEMENT DISCUSSION &ANALYSISMANAGEMENT DISCUSSION Annual Report 2015-16 Annual Report 49 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW Board’s Report Dear Members, (PSOR\HHV6WRFN2SWLRQ6FKHPHV The Company has implemented the Employees’ Stock Option Your Directors are pleased to present the 21st Annual Report and the Schemes in accordance with the applicable Regulations Prescribed by &RPSDQ\·V DXGLWHG ÀQDQFLDO VWDWHPHQW IRU WKH ÀQDQFLDO \HDU HQGHG WKH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD 6(%, DQGWKHUHVROXWLRQV March 31, 2016. SDVVHG E\ WKH 0HPEHUV RI WKH &RPSDQ\ 7KH &HUWLÀFDWH V RI WKH 6WDWXWRU\ $XGLWRUV FRQÀUPLQJ WKH VDPH VKDOO EH SODFHG EHIRUH WKH Financial Results HQVXLQJ$QQXDO*HQHUDO0HHWLQJIRULQVSHFWLRQE\WKH0HPEHUV'XULQJ 7KH ÀQDQFLDO SHUIRUPDQFH RI WKH &RPSDQ\ IRU WKH \HDU HQGHG the year, there is no change in the Employees’ Stock Option Schemes March 31, 2016 is summarized below: RI WKH &RPSDQ\ 7KH 1RPLQDWLRQ DQG 5HPXQHUDWLRQ &RPPLWWHH RI WKH%RDUGRI'LUHFWRUVRIWKH&RPSDQ\inter alia, administrators and ` in Crores monitors the Employees Stock Option Schemes. Particulars 2015-16 2014-15 5HYHQXHIURPRSHUDWLRQV 67.30 74.32 7KHLVVXHRIHTXLW\VKDUHVSXUVXDQWWRH[HUFLVHRIRSWLRQVGRHVQRW Operating loss (41.31) (18.24) DIIHFWWKH6WDWHPHQWRI3URÀWDQG/RVVRIWKH&RPSDQ\DVWKHH[HUFLVH 3URÀW ORVV EHIRUHH[FHSWLRQDOLWHPVDQGSULRU (90.96) (67.82) LVPDGHDWWKHPDUNHWSULFHSUHYDLOLQJDVRQWKHGDWHRIWKHJUDQWSOXV SHULRGH[SHQVHV DSSOLFDEOHWD[HV ([FHSWLRQDOLWHPVDQGSULRUSHULRGH[SHQVHV (619.73) H[SHQVH LQFRPH Voting rights on the shares issued to employees under the Employees’ 3URÀW ORVV EHIRUHWD[ 6WRFN2SWLRQ6FKHPHVDUHHLWKHUH[HUFLVHGE\WKHPGLUHFWO\RUWKURXJK WKHLUDSSRLQWHGSUR[\ 5HVXOWVRIRSHUDWLRQVDQGWKH6WDWHRI&RPSDQ\·VDIIDLUV During the year under review, the Company recorded an operating The applicable disclosures with regard to the Employees’ Stock WXUQRYHU RI ` 67.30 Crores (previous year ` 74.32 Crores). The 2SWLRQ 6FKHPHV XQGHU WKH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD FRQVROLGDWHG UHYHQXH IURP RSHUDWLRQV ZDV ` 3,403.31 Crores as 6KDUHEDVHG(PSOR\HH%HQHÀWV 5HJXODWLRQVDUHGLVFORVHGRQ against ` &URUHV LQ SUHYLRXV \HDU DQG 3URÀW EHIRUH WD[ WKHZHEVLWHRIWKH&RPSDQ\DWZZZQHWZRUNRQOLQHFRPDQGDOVR H[FHSWLRQDOLWHPVDQGSULRUSHULRGH[SHQVHVRQDFRQVROLGDWHGEDVLV SURYLGHGLQWKHQRWHVIRUPLQJSDUWRIWKH)LQDQFLDO6WDWHPHQWIRUWKH was ` 86.40 crore (previous year ` 29.41crores). 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UHQHZLQJDQ\GHSRVLWVZHI$SULO7KH&RPSDQ\KDGUHSDLGDOOWKH deposits and interest thereon. However, as on March 31, 2016, deposits and interest thereon aggregating to Rs 2.83 crores remained unclaimed. 50 Network18 Media & Investments Limited 5HPXQHUDWLRQ3ROLF\IRU'LUHFWRUV.H\0DQDJHULDO3HUVRQQHO E 'LUHFWRUV GHWHUPLQLQJ DQG 'LUHFWRUV RI VHOHFWLRQ IRU 3ROLF\ D KIORLJ RLLV I K&PD\ UDQ[G HHLK DQG KHUHZLWK DQQH[HG marked as DUH &RPSDQ\ WKH RI SROLFLHV IROORZLQJ 7KH 'LVFORVXUH DQG 2EOLJDWLRQV Requirements) Regulations, /LVWLQJ 2015. ,QGLD RI %RDUG ([FKDQJH DQG RIWKH&RPSDQLHV$FWUHDGZLWK5HJXODWLRQRIWKH6HFXU RILQGHSHQGHQFHDVSUHVFULEHGXQGHUVXEVHFWLRQ RI6HFWLRQ ,QGHSHQGHQW WKH DOO 'LUHFWRUVRIWKH&RPSDQ\FRQÀUPLQJWKDWWKH\PHHWZLWKWKHFULW IURP GHFODUDWLRQV UHFHLYHG KDV &RPSDQ\ 7KH UH IRU KLPVHOI appointment. 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StockOption 3. 2. 1R 6O ,QGHSHQGHQW'LUHFWRUV .Grosssalary 1. 1R 6O 27+(52)),&(56,1'()$8/7 & ',5(&7256 % &203$1< $ 7\SH &HDVHGWREH'LUHFWRUZHI)HEUXDU\ $SSRLQWHGDVDQ,QGHSHQGHQW'LUHFWRUZHI-DQXDU\ RD 7RWDO tes00 .000 .000 .00.00 0.00 0.00 0.00 0.00 0.00 0.00 Others Overall CeilingaspertheAct 7RWDO0DQDJHULDO5HPXQHUDWLRQ 7RWDO % RD 7RWDO omsin00 .000 .000 .00.00 0.00 0.00 0.00 0.00 0.00 0.00 Commission tes00 .000 0.00 0.00 0.00 0.00 Others omsin00 .000 0.00 0.00 0.00 0.00 Commission DWFOUI5PQUWR 1DPHRI'LUHFWRUV 3DUWLFXODUVRI5HPXQHUDWLRQ Compounding Punishment Penalty )HHIRUDWWHQGLQJ%RDUG&RPPLWWHH0HHWLQJV )HHIRUDWWHQGLQJ%RDUG&RPPLWWHH0HHWLQJV Compounding Punishment Penalty Compounding Punishment Penalty RD 7RWDO RWKHUVVSHFLI\ 2WKHUVSOHDVHVSHFLI\ (PSOR\HUV&RQWULEXWLRQWR3) DVRISURÀW F3URÀWVLQOLHXRIVDODU\XQGHUVHFWLRQ ,QFRPHWD[$FW F E9DOXHRISHUTXLVLWHVXV ,QFRPHWD[$FW E 6DODU\DVSHUSURYLVLRQVFRQWDLQHGLQVHFWLRQ RIWKH D 3DUWLFXODUVRI5HPXQHUDWLRQ ,QFRPHWD[$FW &RPSDQLHV$FW 6HFWLRQRIWKH and itscommittees. 7KH&RPSDQ\FDQSD\DVLWWLQJIHHRI5VIRUDWWHQGLQJ 'HHSDN 3DUHNK Bansal 10 .000 16.00 0.00 5.00 11.00 5RKLW .01.050 10 .020 37.00 2.00 2.00 11.00 5.00 12.00 5.00 %ULHI'HVFULSWLRQ =DLQXOEKDL &KKDMODQL 9LQD\ Adil ,82,7 51,3 .02,23,35,507 0.00 25,12,535 1,98,22,972 $33DULJL ,00015,7 .09,99,973 0.00 1,59,973 8,40,000 IHHVLPSRVHG 3XQLVKPHQW&RPSRXQGLQJ 'HWDLOVRI3HQDOW\ HU:7' &(2 .000 .00,00 0.00 0.00 0.00 .000 .00.00 0.00 0.00 0.00 .000 .00.00 0.00 0.00 0.00 .000 .00.00 0.00 0.00 0.00 5DJKDY /XWKUD %DKO Rajiv Rajiv .H\0DQDJHULDO3HUVRQQHO 2 1,/ 6HFUHWDU\ &RPSDQ\ 'KUXY 6DPUDW Kaji 1&/7&RXUW@ $XWKRULW\>5' Nirupama HDFKPHHWLQJRIWKH%RDUGRIGLUHFWRUV Rao Annual Report 2015-16 Annual Report 0DKDGHYDQ +DULKDUDQ &)2 Prasoon -RVKL DQ\ JLYH'HWDLOV $SSHDOPDGHLI BOARD’S REPORT (Amount 1 (Amount in ` inLacs) Amount 7RWDO 7RWDO ` 69 ) FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW Corporate Governance Report The report containing details of Corporate Governance systems and requirements on corporate governance and has constituted the processes of Network18 Media & Investments Limited (hereinafter UHTXLVLWH FRPPLWWHHV WR ORRN LQWR LVVXHV RI ÀQDQFLDO UHSRUWLQJ referred to as “Network18” or “The Company”), in accordance with investor grievances and executive remuneration. This attitude the Securities and Exchange Board of India (Listing Obligations and of Network18 has strengthened the bond of trust with its Disclosure Requirements) Regulations, 2015 (“Listing Regulations”) stakeholders including the society at large. are as follows: Ethics / Governance Policies 1. Company’s Philosophy on Code of Governance At Network18, we strive to conduct our business and strengthen Corporate Governance is about commitment to values and ethical our relationship in a manner that is dignified, distinctive and business conduct. We look upon good corporate governance responsible. We adhere to ethical standards to ensure integrity, practices as a key driver of sustainable corporate growth transparency, independence and accountability in dealing with and long-term shareholders value creation. Good corporate all stakeholders. Therefore, we have adopted various codes and governance is about enhancing value for all our stakeholders. policies to carry out our duties in an ethical manner. Some of these The Company is committed to adopt best practices in corporate codes and policies are: governance. This includes its corporate and other structures, its culture, policies and the manner in which it deals with various Code of Conduct to Regulate, Monitor and Report Trading by stakeholders. Accordingly, timely and accurate disclosure of Insiders LQIRUPDWLRQ UHJDUGLQJ WKH ÀQDQFLDO VLWXDWLRQ SHUIRUPDQFH ownership and governance of the Company is an important part Code of Business Conduct and Ethics for Directors and of corporate governance. Management Personnel The Company believes that sound corporate governance is critical Code of Practices and Procedures for Fair Disclosure of to enhance and retain investors’ trust. The Company’s corporate Unpublished Price Sensitive Information governance philosophy is based on the following principles: Vigil Mechanism and Whistle Blower Policy 1. Primary responsibility of a good corporate entity is maximizing shareholders value. Policy on Materiality of Related Party Transactions and on Dealing with Related Party Transactions 2. Be transparent and maintain a high degree of disclosures level. Corporate Social Responsibility Policy 3. Sound system of risk management and internal control. Remuneration Policy for Directors, Key Managerial Personnel and 4. Principles of integrity, transparency, disclosure, other Employees accountability and fairness. Policy for determining Material Subsidiaries 5. Upholding the highest standards of professionalism. Website Archival Policy 6. Management is the trustee of the members’ capital and not the owner. Policy for preservation of documents The Company complies with all statutory and regulatory Policy for Determination and Disclosure of materiality of events & information 70 Network18 Media & Investments Limited the criteria, directors areevaluatedbasedon, devised bytheNomination andRemuneration Committee.Asper criteria ofevaluationdirectors (includingindependentdirectors) ofIndependentDirectorsisevaluatedbasedonthe Performance EvaluationCriteriaofDirectors Performance steps topresenttheirviewsthe Board. other IndependentDirectors.Directorstakeappropriate theirviewstothe totheCompany’saffairsandputforth pertaining are conductedtoenableIndependentDirectorsdiscussmatters 'LUHFWRUV 1RQ,QGHSHQGHQW and managementpersonnel.SuchmeetingsofIndependentDirectors RI SUHVHQFH WKH ZLWKRXW \HDU ÀQDQFLDO The Company’sIndependentDirectorsmeetatleastonceinevery Meetings ofIndependentDirectors independence duringtheyear. the IndependentDirectorshavegivenrequisitedeclarationsof meets thecriteriaofindependenceasprovidedunderlaw. All RIWKH%RDUGLQHYHU\ÀQDQFLDO\HDUJLYHVDGHFODUDWLRQWKDWK KHVKHSDUWLFLSDWHVDVD'LUHFWRUDQGWKHUHDIWHUDWWKHÀUVWPH (YHU\,QGHSHQGHQW'LUHFWRUDWWKHÀUVWPHHWLQJRIWKH%RDUGLQ Committee’s recommendation,andtakesappropriatedecision. Directors’independence.TheBoardconsidersthe and determining in accordancewiththeCompany’sPolicy forselectionofDirectors held invariouscommitteesofothercompaniesbysuchpersons andnumberofDirectorshipsMemberships area ofexpertise 7KH&RPPLWWHHLQWHUDOLDFRQVLGHUVTXDOLÀFDWLRQSRVLWLYHDWW Committee, forappointmentasIndependentDirectorsontheBoard. policy decisionsareconsideredbytheNominationandRemuneration and whocaneffectivelycontributetotheCompany’sbusiness ÀHOGSURIHVV UHVSHFWLYH WKHLU LQ VWDQGLQJ LQGHSHQGHQW DQ KDYLQJ Considering therequirementofskillsetsonBoard,eminentpeople Selection ofIndependentDirectors nor isrelatedtoanyotherKey ManagerialPersonnel oftheCompany. None oftheDirectorsisinterse,relatedtoanyotherDirectoronBoard ofDirectorsareasfollows: ThecompositionoftheBoardandcategory BoardofDirectors 2. 1 ofDirectors: Board compositionandcategory aeoyNameofDirectors Non-Executive Non-IndependentDirectors Independent Directors Category AppointedasAdditionalDirectorw.e.f. 15,2016. January inter alia, inter ULEXWHV ZKLFK their HVKH HWLQJ LRQ Nomination andRemuneration Committee. of theIndependentDirectorsisdonebyBoardand evaluation in whichtheCompanyoperates.Annualperformance environment knowledge, awarenessofthebusinessandregulatory attendance, contributionsmadebytheminthemeeting,subject ensure theircontinuing relevance,effectivenessand responsiveness in thisCodeand forupdatingthesestandards,as appropriate,to for, andarecommittedto,settingthestandardsofconduct contained “The Company’sBoardandManagement Personnel areresponsible around thefollowingtheme: centers the standardsofbusinessconduct, ethicsandgovernance, and ManagementPersonnel. The Code,whilelayingdownindetail, The CompanyhasaCodeofBusinessConductandEthicsforDirectors Code ofConduct Programmes-for-Independent-directors.pdf. KWWS ZZZQHWZRUNRQOLQHFRPUHSRUWVSROLFLHV)DPLOLDULVDWLRQ are postedonthewebsiteofCompanyandmaybeaccessedat: The detailsofsuchfamiliarizationprogrammesforIndependentDirectors the Directors. lawsarealsocirculatedto pronouncements encompassingimportant changesandlandmarkjudicial Periodical updatesonrelevantstatutory global businessenvironment,strategyandrisksinvolved. updatesoftheCompany, Meetings, onbusinessandperformance Presentations aremadeperiodicallyattheBoardanditsCommittees of theCompanyandotherrelatedmatters. Company, inwhichitoperates,Businessmodel natureoftheindustry order tofamiliarizethemwiththeirroles,rights,responsibilitiesinthe various programmesandpresentationsfortheBoardofDirectorsin Company’s proceduresandpractices.TheCompanyorganizes policiestoenablethemfamiliarizewiththe andinternal reports documents, The Boardmembersareprovidedwithnecessary Familiarization ProgrammesforBoardMembers Mr. Rohit Bansal Mr. VinayChandChhajlani Mr. Prasoon Joshi Rao Ms. Nirupama Mr. SubodhKaji Dhruv Mr. Rajiv KrishanLuthra Mr. DeepakShantilalParekh Mr. AdilZainulbhai–Chairman 1 CORPORATE GOVERNANCEREPORT Annual Report 2015-16 Annual Report 71 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW to the needs of local and international investors and other stakeholders (ii) All departments of the Company are encouraged to DVDOVRWRUHÁHFWFRUSRUDWHOHJDODQGUHJXODWRU\GHYHORSPHQWV7KLV plan their functions well in advance, particularly with Code should be adhered to in letter and in ‘spirit’.” UHJDUG WR PDWWHUV UHTXLULQJ GLVFXVVLRQ DSSURYDO GHFLVLRQDW%RDUG%RDUG&RPPLWWHHPHHWLQJV6XFK A copy of the Code has been posted on the Company’s website matters are communicated by them to the Company i.e. www.network18online.com. The Code has been circulated to Secretary in advance so that they are included in the 'LUHFWRUVDQG0DQDJHPHQW3HUVRQQHODQGLWVFRPSOLDQFHLVDIÀUPHGE\ DJHQGDIRU%RDUG%RDUG&RPPLWWHHPHHWLQJV them annually. LLL 7KH%RDUG LV JLYHQ SUHVHQWDWLRQV EULHIHG RQ DUHDV A declaration to this effect, signed by the Manager of the Company is covering operations of the Company, before taking on given below: UHFRUG WKH TXDUWHUO\ DQQXDO ÀQDQFLDO UHVXOWV RI WKH Company. The Chairman of the Board and Company ,W LV KHUHE\ FHUWLÀHG WKDW DOO WKH PHPEHUV RI WKH %RDUG DQG 6HQLRU Secretary, in consultation with other concerned 0DQDJHPHQW3HUVRQQHOKDYHFRQÀUPHGWRDQGFRPSOLHGZLWKWKH&RGH PHPEHUV RI WKH VHQLRU PDQDJHPHQW ÀQDOL]H WKH GXULQJWKHÀQDQFLDO\HDUDQGWKHUHKDVEHHQQRLQVWDQFHRI agenda for Board meetings. violation of the Code. 7KHLWHPVPDWWHUVUHTXLUHGWREHSODFHGEHIRUHWKH%RDUGLQWHU Kshipra Jatana alia, include: Manager April 20, 2016, Mumbai Annual operating plans of businesses and budgets including capital budgets and any updates 3. Board and Committee Meetings and its Procedures (a) Institutionalised decision-making process Company’s Annual Financial Results, Financial Statements, The Board of Directors is the apex body constituted for Auditors’ Report and Board’s Report overseeing the Company’s overall functioning. The Board provides and evaluates the Company’s strategic direction, Quarterly results of the Company management policies and their effectiveness, and ensures that stakeholders long-term interests are being served. Minutes of meetings of the Audit Committee and other Committees of the Board The Board has constituted various committees, like Audit Committee, Nomination and Remuneration Committee, Show cause, demand, prosecution notices and penalty Corporate Social Responsibility Committee and Stakeholders notices, which are of material nature Relationship Committee. The Board is authorised to constitute additional functional committees, from time to Fatal or serious accidents, dangerous occurrences, and any time, depending on business needs. PDWHULDOHIÁXHQWRUSROOXWLRQSUREOHPV 7KH &RPSDQ\·V LQWHUQDO JXLGHOLQHV IRU %RDUG %RDUG $Q\PDWHULDO GHIDXOW LQ ÀQDQFLDO REOLJDWLRQV WR DQG E\ WKH Committee meetings facilitate the decision making process Company, or substantial non-payment for goods sold by the DW LWV PHHWLQJV LQ DQ LQIRUPHG DQG HIÀFLHQW PDQQHU 7KH Company following sub-sections deal with the practice of these guidelines at the Company. Any issue, which involves possible public or product liability claims of substantial nature, including any judgment or order, (b) Scheduling and selection of agenda items for Board which may have passed strictures on the conduct of the meetings Company or taken an adverse view regarding another enterprise L 0LQLPXPÀYHSUHVFKHGXOHG%RDUGPHHWLQJVDUHKHOGLQ that can have negative implications on the Company DÀQDQFLDO\HDU%RDUGPHHWLQJVDUHFRQYHQHGE\JLYLQJ DSSURSULDWHQRWLFHWRDGGUHVVWKH&RPSDQ\·VVSHFLÀF 5HFUXLWPHQWDQGUHPXQHUDWLRQRIVHQLRURIÀFHUVMXVWEHORZ needs. In case of business exigencies or urgency of the Board of Directors matters, resolutions are passed by circulation. Details of any joint venture or collaboration agreement 72 Network18 Media & Investments Limited ofmonies,givingguarantees orprovidesecurity Borrowing Making ofloansand Investmentofsurplusfunds ,QWHUQDO$XGLWÀQGLQJVDQG([WHUQDO$XGLW5HSRUWV WKURXJK 5HFRPPHQGLQJDSSRLQWPHQWRIDQGÀ[LQJRIUHPXQHUDWLRQ IssueofSecuritiesincludingDebentures Secretarial AuditandCostreports Auditors, Auditors,Internal Appointment ofStatutory AppointmentorremovaloftheKey ManagerialPersonnel Disclosure ofDirectors’interestandtheirshareholding Declaration ofIndependentDirectorsatthetime companies Minutes ofBoardmeetingsunlistedsubsidiary Terms ofreferenceBoardCommittees )RUPDWLRQUHFRQVWLWXWLRQRI%RDUG&RPPLWWHHV Appointment, remunerationandresignationofDirectors orlisting Non-compliance ofanyregulatory, statutory detailsofforeignexchangeexposures,andsteps Quarterly Sale ofmaterialnatureinvestments,subsidiaries,assets, VROXWLRQV SURSRVHG WKHLU DQG SUREOHPV 6LJQLÀFDQW ODERXU Transactions thatinvolvesubstantialpaymenttowards in respectofloans the AuditCommittee) of theAuditorsasrecommendedbyAuditCommittee Secretarial AuditorsandCost DSSRLQWPHQWDQQXDOO\ non-payment, sharetransferdelay(ifany),amongothers suchasdividend requirements, andshareholders’service, movement, ifmaterial taken bymanagementtolimitrisksofadverseexchangerate courseofbusiness which isnotinthenormal Scheme, etc. Relations frontlikeimplementationofVoluntary Retirement $Q\VLJQLÀFDQWGHYHORSPHQWLQ+XPDQ5HVRXUFHV,QGXVWULDO goodwill, brandequityorintellectualproperty The agendaandnotesonarecirculatedtoDirectors The CompanySecretary, whilepreparingtheagenda,notes (e) Compliance The guidelines forBoardandCommitteemeetings Post meetingfollow-upmechanism (d) recordsminutesofproceedings The CompanySecretary (c) minutesofproceedingsBoardand Recording 6DHHW I LQÀDW UQDWRVUOWG SDUW\ UHODWHG WUDQVDFWLRQV VLJQLÀFDQW RI 6WDWHPHQW Takeover ofacompanyoracquisitioncontrolling 6LJQLÀFDQWFKDQJHVLQDFFRXQWLQJSROLFLHVDQGLQWHUQDOFRQWUR &RPSOLDQFH&HUWLÀFDWHFHUWLI\LQJFRPSOLDQFHZLWKDOOODZV item(s) ontheagendaarepermitted. exceptional circumstances,additionalorsupplementary reference tothiseffectintheagenda.Inspecialand WRWKHDJHQGDLWLVWDEOHGEHIRUHWKHPHHWLQJZLWKVSHFLÀF meeting. Whereitisnotpracticabletoattachanydocument facilitating meaningfulandfocuseddiscussionsatthe PDWHULDO $OO IRUPDW DJHQGD isincorporatedinthenotestoagendafor information GHÀQHG WKH LQ DGYDQFH LQ companies subsidiary enteredbyunlisted transactions andarrangements substantial stakeinanothercompany as applicabletotheCompany. WQDG 6 Q6 SFÀG \ K,VLXH RI ,QVWLWXWH Company SecretariesofIndia. WKH E\ VSHFLÀHG 66 DQG 66 6WDQGDUGV issuedthereunder,rules asapplicable andtheSecretarial and regulationsincludingCompanies Act,2013readwith and isrequiredtoensureadherenceallapplicablelaws on agenda,minutesofthemeeting(s),isresponsiblefor PHHWLQJRIWKH%RDUG%RDUG&RPPLWWHHIRUQRWLQJ of thepreviousmeeting(s)isplacedatsucceeding SURPSWO\WRWKHFRQFHUQHGGHSDUWPHQWVGLYLVLRQV0LQXWHV FRPPXQLFDWHG DUH PHHWLQJV &RPPLWWHH %RDUG%RDUG WKH decisionstakenat Board Committeesthereof. Important processfordecisionstakenbytheBoardand reporting reviewand facilitate aneffectivepostmeetingfollow-up, within 30daysfromtheconclusionofmeeting. comments. TheminutesareenteredintheMinutesBook FLUFXODWHGWRWKH%RDUG%RDUG&RPPLWWHHPHPEHUVIRUWKHLU minutes are of eachBoardandCommitteemeeting.Draft Board Committeemeetings CORPORATE GOVERNANCEREPORT Annual Report 2015-16 Annual Report 73 OV FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 4. Details of Board Meetings Held Five Board meetings were held during the year ended March 31, 2016, as against the minimum requirement of four meetings. The details of Board meetings are given below: Date of the Meeting Board Strength No. of Directors Present April 15, 2015 85 July 22, 2015 86 October 14, 2015 84 January 15, 2016 87 March 23, 2016 87 5. ATTENDANCE OF DIRECTORS AT THE BOARD MEETINGS, LAST ANNUAL GENERAL MEETING (AGM) AND NUMBER OF OTHER DIRECTORSHIP(S) AND CHAIRMANSHIP(S) / MEMBERSHIP(S) OF COMMITTEES OF EACH DIRECTOR IN VARIOUS COMPANIES: Attendance at meetings during 2015-16 No. of Other No. of Membership(s) / Name of the Director Board Meetings AGM Directorship(s)3 Chairmanship(s) of Board Committees4 Mr. Adil Zainulbhai 5 Yes 7 7 (including 5 as Chairman) Mr. Deepak Shantilal Parekh 2 No 12 7 (including 3 as Chairman) Mr. Dhruv Subodh Kaji 5No34 Ms. Nirupama Rao 2No41 Mr. Prasoon Joshi1 1 N.A. 5 Nil Mr. Raghav Bahl2 Nil No N.A. N.A. Mr. Rajiv Krishan Luthra 4 No 7 6 (including 2 as Chairman) Mr. Rohit Bansal 5 Yes 9 7 (including 2 as Chairman) Mr. Vinay Chand Chhajlani 5 Yes 17 1 1 Appointed as Additional Director on January 15, 2016. One (1) Board Meeting was held during his tenure. 2 Ceased to be a director w.e.f. February 8, 2016. Four (4) Board Meetings were held during his tenure. 3 The Directorships, held by Directors as mentioned above, do not include Directorships in foreign companies. 4,QDFFRUGDQFHZLWKWKH/LVWLQJ5HJXODWLRQV0HPEHUVKLS V &KDLUPDQVKLS V RIRQO\WKH$XGLW&RPPLWWHHVDQG6KDUHKROGHUV·6WDNHKROGHUV5HODWLRQVKLS&RPPLWWHHVLQDOOSXEOLF limited companies (including that of the Company) have been considered. 9LGHRWHOHFRQIHUHQFLQJIDFLOLWLHVDUHSURYLGHGWRIDFLOLWDWH'LUHFWRUVWUDYHOLQJDEURDGRUSUHVHQWDWRWKHUORFDWLRQVWRSDUWLFLSDWHLQWKHPHHWLQJV 6. Board Committees Details of the Board Committees and other related information: Audit Committee Corporate Social Responsibility Committee Sl. Name of Director Sl. Name of Director No. No. 1 Mr. Adil Zainulbhai (Independent Director, Chairman of the Committee) 1 Mr. Adil Zainulbhai (Independent Director, Chairman of the Committee) 2 Mr. Deepak Shantilal Parekh (Independent Director) 2 Mr. Rajiv Krishan Luthra (Independent Director) 3 Mr. Dhruv Subodh Kaji (Independent Director) 3 Mr. Rohit Bansal (Non-Executive Director) 4 Mr. Rohit Bansal (Non-Executive Director) 4 Mr. Vinay Chand Chhajlani (Non-Executive Director) Risk Management Committee Nomination And Remuneration Committee 1 Mr. Adil Zainulbhai (Independent Director, Chairman of the Committee) 1 Mr. Dhruv Subodh Kaji (Independent Director, Chairman of the Committee) 2 Mr. Dhruv Subodh Kaji (Independent Director) 2 Mr. Adil Zainulbhai (Independent Director) 3 Mr. Rohit Bansal (Non-Executive Director) 3 Mr. Deepak Shantilal Parekh (Independent Director) 4 0U+DULKDUDQ0DKDGHYDQ &KLHI)LQDQFLDO2IÀFHU 4 Mr. Rohit Bansal (Non-Executive Director) Stakeholders Relationship Committee 1 Mr. Adil Zainulbhai (Independent Director, Chairman of the Committee) 2 Mr. Rohit Bansal (Non-Executive Director) 3 Mr. Vinay Chand Chhajlani (Non-Executive Director) 0U 74 Network18 Media & Investments Limited Powers oftheCommittee following: Terms oftheAuditCommittee, ofReference DFFRXQWLQJ ÀQDQFLDO H[SHUWLVHH[SRVXUH SRVVHVV &RPPLWWHH $XGLW WKH RI 0HPEHUV of theCompaniesAct,2013andRegulation 18ofListingRegulations. The Committee’scompositionmeetswithrequirementsofSection177 Composition oftheCommittee: (a) Audit Committee committee membersandalsoplacedbeforetheBoardfornoting. of proceedingsCommitteemeetingsarecirculatedtotherespective it considersappropriatetoassistindischargingitsfunction.Minutes advisorsandcounselstotheextent experts, authority toengageexternal to Committeemeetingsasfarpracticable.Eachhasthe The Company’sguidelinesrelatingtotheBoardmeetingsareapplicable Procedure atCommitteeMeetings during theyear. Responsibility CommitteeandRiskManagementwasheld No meetingofStakeholders’Relationship Committee,CorporateSocial 2 1 Directors’ attendance: Meetings ofBoardCommitteesheldduringtheyearand .. -NotaMemberoftheCommittee N.M. Mr. SubodhKaji Dhruv Mr. DeepakShantilalParekh Mr. AdilZainulbhai No. ofMeetingsattended Number ofMeetingsheld r oi aslNon-ExecutiveDirector IndependentDirector IndependentDirector Mr. Rohit Bansal IndependentDirector Mr. SubodhKaji Dhruv Mr. DeepakShantilalParekh Mr. AdilZainulbhai(Chairman) Mr. Rajiv KrishanLuthra Audit Mr. Rohit Bansal Particulars Mr. VinayChandChhajlani Mr. Raghav Bahl Ms. Nirupama Rao Ms. Nirupama Mr. Prasoon Joshi Appointed as Additional Director on January 15,2016 AppointedasAdditionalDirectoronJanuary Mr. SubodhKajiwasappointedasmemberoftheCommitteeonOctober14,2015 Dhruv and nomeetingwasheldduringhistenure. To ifit secureattendance ofoutsiderswithrelevantexpertise, To legal orotherprofessionaladvice. obtainexternal To fromanyemployee. seekinformation To ofreference. investigate anyactivitywithinitsterms considers necessary. 2 Committee ..N.M. N.M. ..N.M. N.M. ..N.M. N.M. ..N.M. N.M. ..N.M. N.M. 51 Refer Notebelow 5 2- 51 51 Remuneration Committee Remuneration inter alia inter Nomination and , includes the , includesthe 1 - Matters requiredtobeincludedintheDirectors’ 4XDOLÀFDWLRQLQWKHGUDIWDXGLWUHSRUW transactionand Disclosure ofrelatedparty - Compliance withlistingandotherlegalrequirementsrelating - VWDWHPHQWV ÀQDQFLDO WKH LQ PDGH 6LJQLÀFDQW DGMXVWPHQWV Major accountingentriesinvolvingestimatesbasedonthe - Changes, ifany, inaccountingpoliciesandpractices - Role oftheCommittee, Role 7RUHYLHZZLWKWKHPDQDJHPHQWWKHDQQXDOÀQDQFLDOVWDWHPHQWV To auditorsforanyotherservices approvepaymenttostatutory To Independenceand reviewandmonitortheAuditor’s To recommendtotheBoard,appointment,remunerationand UHSRUWLQJ ÀQDQFLDO FRPSDQ\·V WKH RYHUVHH DQG H[DPLQH 7R To monitorenduseoffundsraisedthroughpublicoffer 7RH[DPLQHWKHÀQDQFLDOVWDWHPHQWVDQGDXGLWRUV·UHSRUWWKHUH rendered by the statutory auditors. rendered bythestatutory andeffectivenessoftheauditprocess. performance ofappointmenttheAuditorsCompany.terms WKDWWKHÀQDQFLDOVWDWHPHQWLVFRUUHFWVXIÀFLHQWDQGFUHGLEOH SURFHVVDQGWKHGLVFORVXUHRILWVÀQDQFLDOLQIRUPDWLRQWRHQVXU utilization ofproceeds ofapublicorrightsissue, andmaking WKH DQG GRFXPHQWVSURVSHFWXVQRWLFH submittedby themonitoringagency the report RIIHU WKH LQ VWDWHG the statementoffundsutilizedfor purposesotherthanthose DQ WKURXJK UDLVHG issue (publicissue,rights preferentialissue,etc.), IXQGV RI XVHVDSSOLFDWLRQ RI VWDWHPHQW and relatedmattersreview, withthemanagement, the Boardforapproval. and reviewthesamewithmanagementbeforesubmissionto referenceto: approval, withparticular thereonbeforesubmissiontotheBoard for report and auditor’s WRÀQDQFLDOVWDWHPHQWV DULVLQJRXWRIDXGLWÀQGLQJV exercise ofjudgmentbythemanagement reasons forthesame the CompaniesAct,2013 ofclause(c)SubSection(3)section134 in terms Responsibility StatementtobeincludedintheBoard’sreport inter alia inter , includesthefollowing: CORPORATE GOVERNANCEREPORT Annual Report 2015-16 Annual Report RQ 75 H FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW appropriate recommendations to the Board to take up steps 6WDWHPHQWRI VLJQLÀFDQW UHODWHG SDUW\ WUDQVDFWLRQV DV SHU WKH in this matter. Company’s Policy), submitted by management. 7R DSSURYH VXEVHTXHQW PRGLÀFDWLRQ RI WUDQVDFWLRQV RI WKH 0DQDJHPHQWOHWWHUV OHWWHUV RI LQWHUQDO FRQWURO ZHDNQHVVHV Company with related parties. issued by the Statutory Auditors. To scrutinize inter-corporate loans and investments. Internal Audit Reports relating to internal control weaknesses and To approve the valuation of undertakings or assets of the The appointment, removal and terms of remuneration of the Chief Company, whenever it is necessary. ,QWHUQDO$XGLWRU,QWHUQDO$XGLWRU V VKDOOEHVXEMHFWWRUHYLHZE\ the Audit Committee. 7R HYDOXDWH LQWHUQDO ÀQDQFLDO FRQWUROV DQG ULVN PDQDJHPHQW systems. General Executives of Finance and Accounts Department, Secretarial To review with the management, performance of statutory and Department and representatives of Statutory and Internal Auditors are internal auditors, and adequacy of the internal control systems. also invited to attend the Audit Committee Meetings. To review the adequacy of internal audit function, if any, The Internal Auditors reports directly to the Audit Committee. LQFOXGLQJWKHVWUXFWXUHRIWKHLQWHUQDODXGLWGHSDUWPHQWVWDIÀQJ DQG VHQLRULW\ RI WKH RIÀFLDO KHDGLQJ WKH GHSDUWPHQW UHSRUWLQJ 'XULQJWKH\HDUÀYHPHHWLQJVRIWKH$XGLW&RPPLWWHHZHUHKHOGRQ structure coverage and frequency of internal audit. April 15, 2015, July 22, 2015, October 14, 2015, January 15, 2016 and March 23, 2016 and the maximum time gap between any two 7R GLVFXVV ZLWK ,QWHUQDO $XGLWRUV DQ\ VLJQLÀFDQW ÀQGLQJV DQG meetings was less than 120 days. follow up thereon. The Chairman of the Audit Committee was present at the last Annual 7R UHYLHZ WKH ÀQGLQJV RI DQ\ LQWHUQDO LQYHVWLJDWLRQV E\ WKH General Meeting held on September 24, 2015. Internal Auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material (b) Nomination and Remuneration Committee nature and reporting the matter to the board. Composition of the Committee: Mr. Dhruv Subodh Kaji (Chairman) Independent Director To discuss with Statutory Auditors before the audit commences, Mr. Adil Zainulbhai Independent Director about the nature and scope of audit as well as post-audit Mr. Deepak Shantilal Parekh Independent Director discussion to ascertain any area of concern. Mr. Rohit Bansal Non-Executive Director To look into the reasons for substantial defaults, if any, in the The Committee’s composition meets with the requirements of Section payment to the depositors, debenture holders, shareholders (in 178 of the Companies Act, 2013 and Regulation 19 of the Listing case of non-payment of declared dividends) and creditors. Regulations and Securities and Exchange Board of India (Share Based (PSOR\HH%HQHÀWV 5HJXODWLRQDVDPHQGHGIURPWLPHWRWLPH To review the functioning of the Whistle Blower Mechanism. Terms of Reference of the Committee, inter alia, includes the 7R DSSURYH WKH DSSRLQWPHQW RI &KLHI )LQDQFLDO 2IÀFHU LH WKH following: whole-time Finance Director or any other person heading the 7RLGHQWLI\SHUVRQVZKRDUHTXDOLÀHGWREHFRPH'LUHFWRUVDQG ÀQDQFHIXQFWLRQRUGLVFKDUJLQJWKDWIXQFWLRQ DIWHUDVVHVVLQJWKH who may be appointed in senior management in accordance with TXDOLÀFDWLRQVH[SHULHQFHDQGEDFNJURXQGHWFRIWKHFDQGLGDWH the criteria laid down and to recommended to the Board their DSSRLQWPHQWDQGRUUHPRYDO 7RFDUU\RXWVXFKRWKHUIXQFWLRQVSRZHUVDVPD\EHGHOHJDWHGE\ the Board to the Committee from time to time. To carry out evaluation of every Director’s performance. Reviewing the following information by the Committee: 7KH0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLVRIÀQDQFLDOFRQGLWLRQ and results of operations. 76 Network18 Media & Investments Limited theprocedureforcashless exerciseofoptions - the granting,vestingand exercisingofoptionsincase - the procedureformakingafairandreasonableadjustment - the rightofanemployeetoexercisealloptionsvestedinhimat - WKHVSHFLÀHGWLPHSHULRGZLWKLQZKLFKWKHHPSOR\HHVKDOO the exerciseperiodwithinwhichemployeeshould - the conditionsunderwhichoptionvestedinemployeesmay - the quantumofoptionstobegrantedunderEmployees’ - or To suchotherfunctionsasmaybenecessary perform To outanyotherfunction asismandatedbytheBoard carry To administer, and detailedterms monitorandformulate 7RUHFRPPHQGUHYLHZUHPXQHUDWLRQRIWKH0DQDJLQJ'LUHFWRU V To deviseapolicyonBoarddiversity. To thecriteriaforevaluationofIndependentDirectors formulate 7RIRUPXODWHWKHFULWHULDIRUGHWHUPLQLQJTXDOLÀFDWLRQVSRVL appropriate for the performance ofitsduties appropriate forthe performance DPHQGPHQWRUPRGLÀFDWLRQDVPD\EHDSSOLFDEOH IURPWLPHWRWLPHDQGRUHQIRUFHGE\DQ\VWDWXWRU\QRWLÀFDWLR conditions oftheEmployees’StockOptionSchemeincluding: GHÀQHGDVVHVVPHQWFULWHULD and and Whole-timeDirector(s)basedontheirperformance and theBoard. Managerial Personnel andotheremployees. Board apolicy, relatingtotheremunerationforDirectors,Key attributes andindependenceofaDirector, andrecommendtothe employees whoareonlongleave;and merger, saleofdivisionandothers of corporateactions,suchasrightsissues,bonus to thenumberofoptionsandexercisepriceincase one timeoratvariouspointsofwithintheexerciseperiod resignation ofanemployee or exercise thevestedoptionsineventoftermination failure toexercisetheoptionwithinperiod exercise theoption,andthatoptionwouldlapseon ofemploymentformisconduct lapse incaseoftermination Stock OptionSchemeperemployeeandinaggregate WLYH Q given below: Sitting fee/remunerationpaidtotheDirectorsduringyearis payment%20to%20NEDs%20-Network18.pdf 1RWLFHVDQG(YHQWV2WKHU1RWLFHV&ULWHULDIRU and canbeaccessedat: Non-Executive DirectorsispostedonthewebsiteofCompany to theNon-ExecutiveDirectors.Thecriteriaformakingpayments During theyear, fromthesittingfees,noremunerationwaspaid apart ofNon-ExecutiveDirectors: Remuneration Details oftheremuneration/sittingfeespaidtoDirectors practice. consonance withtheindustry achievements onaperiodicbasis.Theremunerationpolicyisin basedonreviewof is directedtowardsrewardingperformance, and otherindividualDirectors.TheremunerationpolicyoftheCompany evaluationofIndependentDirectors,Board,Committees performance Further, theCompanyhasdevisedaPolicythe Board’sReport. for Personnel andotheremployeesisannexedas The Company’sRemuneration Policy forDirectors,Key Managerial Directors: policyanddetailsofremunerationNon-Executive Remuneration once onJuly22,2015. During theyear, theNominationandRemuneration Committeemet Composition oftheCommittee: Committee StakeholdersRelationship (c) granted anystockoptiontoof itsNon-ExecutiveDirectors. Executive Directorsvis-à-vistheCompany. TheCompanyhasnot relationshipsortransactionsof Non- There werenootherpecuniary 4 3 2 1 Mr. Raghav Bahl Mr. Prasoon Joshi Rao Ms. Nirupama Mr. SubodhKaji Dhruv Mr. Rajiv KrishanLuthra Mr. Rohit Bansal r oi aslNon-ExecutiveDirector Non-ExecutiveDirector IndependentDirector Mr. VinayChandChhajlani Mr. Rohit Bansal Mr. AdilZainulbhai(Chairman) aeo h ietrCtgr Sitting Fee Category Name oftheDirector Mr. VinayChandChhajlani Mr. DeepakShantilalParekh Mr. AdilZainulbhai(Chairman) During theyearendedMarch31,2016,Companyhaspaid fora services During theyearended March31,2016,theCompanyhasavailedcertain CeasedtobeDirectorw.e.f 8,2016 February AppointedasDirectorsw.e.f. 15,2016 January SURIHVVLRQDOIHHVWR0V/XWKUD in whichMr. VinayChandChhajlani,istheWholeTimeDirector. consideration of Luthra, DirectoroftheCompany, isthemanagingpartner. ` 2 77.55Lacs,fromWebdunia.Com (India)Private Limited,aCompany 1 4 3 KWWS ZZZQHWZRUNRQOLQHFRPUHSRUWV /XWKUD/DZ2IÀFHVDÀUPLQ o-xctv ietr- 2,00,000 2,00,000 Non-Executive Director 11,00,000 5,00,000 Independent Director Independent Director 11,00,000 Independent Director 5,00,000 Independent Director Non-Executive Director Non-Executive Director needn ietr5,00,000 12,00,000 Independent Director Independent Director CORPORATE GOVERNANCEREPORT Annual Report 2015-16 Annual Report ZKLFK0U5DMLY.ULVKDQ Annexure IB ` 66.16Lacsas (Amount in to ` 77 ) FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW The aforesaid Committee is primarily responsible to review all matters (d) Corporate Social Responsibility Committee connected with the Company’s transfer of securities and redressal of Composition of the Committee: 6KDUHKROGHUV·,QYHVWRUV·&RPSODLQWV'XULQJWKH\HDUDOOWKH,QYHVWRUV Mr. Adil Zainulbhai (Chairman) Independent Director Complaints were promptly redressed. No meeting of the Stakeholders Mr. Rajiv Krishan Luthra Independent Director Relationship Committee was held during the year. Mr. Rohit Bansal Non-Executive Director Mr. Vinay Chand Chhajlani Non-Executive Director The aforesaid Committee’s composition and the terms of reference meet with the requirements of Section 178 of the Companies Act, The Committee’s prime responsibility is to assist the Board in discharging 2013 and Regulation 20 of the Listing Regulations. its social responsibilities by way of formulating and monitoring implementation of the framework of ‘Corporate Social Responsibility Terms of Reference of the Committee, inter alia, includes the (CSR) Policy’. During the year no meeting of the Committee was held following: as there was no obligation on the Company to spend money on CSR 7R DSSURYH WKH WUDQVIHU WUDQVPLVVLRQ WUDQVSRVLWLRQ RI DQ\ activities. VHFXULW\RIWKH&RPSDQ\DQGWRLVVXH&HUWLÀFDWHVWKHUHRI The Committee’s constitution and terms of reference meet with the 7R DSSURYH UHTXHVWV IRU GHPDWHULDOL]DWLRQUHPDWHULDOL]DWLRQ RI requirements of the Companies Act, 2013. VHFXULWLHVDQGLVVXH&HUWLÀFDWHVWKHUHRI Terms of Reference of the Committee, inter alia, includes the 7RLVVXHGXSOLFDWH6KDUH&HUWLÀFDWHVLQFOXGLQJLQSODFHRIWKRVH following: which are lost, damaged or in which the pages are completely To formulate and recommend to the Board, a CSR policy which H[KDXVWHG SURYLGHGVXFKRULJLQDOFHUWLÀFDWHVDUHVXUUHQGHUHGWR shall indicate the activities to be undertaken by the Company in the Company). compliance with provisions of the Companies Act, 2013 and rules made thereunder. 7RDIÀ[RUDXWKRUL]HDIÀ[DWLRQRIWKH&RPPRQ6HDORIWKH&RPSDQ\ WRWKH6HFXULW\&HUWLÀFDWHV HTXLW\SUHIHUHQFHRUDQ\RWKHUVHFXULW\ To review and recommend the amount of expenditure to be incurred issued by the Company, wherever necessary or required. on the CSR related activities to be undertaken by the Company. To allot any security from time to time either under the rights To institute a transparent monitoring mechanism for the issue, public issue, preferential issue or in any other mode or implementation of the CSR projects, programs and activities form including issue of shares against exercise of Stock Options undertaken by the Company from time to time. granted under Company’s ESOP Schemes. $Q\RWKHU DGGLWLRQDO UROHVSRZHUV DQG DXWKRULWLHV DV PD\ EH 7RUHGUHVV6HFXULW\KROGHUV·FRQFHUQVFRPSODLQWVJULHYDQFHV prescribed under any law, rule, regulation, circular etc. and Listing Regulations as may be prescribed. To attend to other areas of Stakeholders’ services. Any other matter as the CSR Committee may deem appropriate To oversee performance of the Registrar and Transfer Agent of after approval of the Board of Directors or as may be directed by the Company and recommend measure for overall improvement the Board of Directors from time to time. in the quality of investor service. (e) Risk Management Committee Investors Grievance Redressal Composition of the Committee: The Company received 10 complaints during the year ended March Mr. Adil Zainulbhai Independent Director 31, 2016. These Complaints were pertaining to inter alia, non receipt Mr. Dhruv Subodh Kaji Independent Director of dividend warrants and non-receipt of Annual Reports. All the Mr. Rohit Bansal Non –Executive Director complaints were promptly resolved and there was no outstanding 0U+DULKDUDQ0DKDGHYDQ &KLHI)LQDQFLDO2IÀFHU complaint as on March 31, 2016. Terms of Reference of the Committee, inter-alia, includes the &RPSOLDQFH 2IÀFHU Mr. Yug Samrat, Company Secretary, is the following: &RPSOLDQFH 2IÀFHU IRU FRPSO\LQJ ZLWK UHTXLUHPHQWV RI 6HFXULWLHV Framing of Risk Management Plan and Policy Laws, Listing Regulations and SEBI (Prohibition of Insider Trading) Regulation, 2015. Overseeing implementation of Risk Management Plan and Policy 78 Network18 Media & Investments Limited During theyearmembersofCompanyhaveapproved passedthroughPostal SpecialResolutions Ballot (ii) The dateandtimeofAnnual GeneralMeetingsheldduringlastthreeyears,andthespecialresolution(s)passedthereat,ar AnnualGeneralMeetings (i) GeneralBodyMeetings 8. companiesareBoardmanagedwiththeirBoards All subsidiary 7. During theyear, nomeetingoftheCommitteewasheld Continually obtainingreasonableassurancefrommanagementthat Periodically reviewingandevaluatingtheRiskManagementPolicy Validating theprocessforriskmanagementandminimisation MonitoringofRiskManagementPlanandPolicy Subsidiary Companies’MonitoringFrameworkSubsidiary Company has formulated policy for determining materialsubsidiary. policyfordetermining Company hasformulated oftheCompany.is amaterialnon-listedIndiansubsidiary The best interestoftheirstakeholders.Viacom18MediaPrivate Limited having therightsandobligationstomanagesuchcompaniesin managed DOONQRZQDQGHPHUJLQJULVNVKDYHEHHQLGHQWLÀHGDQGPLWLJDWHG processes and practiceswithrespecttoriskassessmentmanagement 1 180 (1)(c)andotherapplicable provisions, ifany, ofthe 2: Resolution Maharashtra atMumbai. i.e. withinthejurisdictionof Registrar ofCompanies, National CapitalTerritory IURP ofDelhitotheStateMaharashtra, &RPSDQ\ WKH RI 2IÀFH 5HJLVWHUHG WKH VKLIW WR other applicableprovisions,ifany, oftheCompaniesAct, 1: Resolution through postalballot. following SpecialResolutions onSeptember28,2015 05Spebr2,21 10 ..No Passed SpecialResolution 11.00a.m. Time Venue September24,2015 M.P.C.U ShahAuditorium,MahatmaGandhi SanskritikKendra, 2015 July29,2013 Date 2013 Year 2014 September 30, 2014 Tivoli Garden Resort, KhasraNo.646-653, ChattarpurRoad, Near TivoliGardenResort, September30,2014 2014 Three specialresolutionswerepassedinregardto(i)appro on private placement and (iii) to adopt the new set of Articles ofAssociationtheCompany. on privateplacementand(iii)toadoptthenewsetofArticles SpecialResolution underSections 42,71, SpecialResolution underSection13and Civil Lines,Delhi–110054. 2 Raj NivasMarg,ShreeDelhiGujaratiSamaj Chattarpur Mandir, NewDelhi-110074. val of borrowing bytheCompany(ii)approvalofofferforinvita val ofborrowing RU companies, ofsubsidiary The Companymonitorsperformance inter alia inter namelyViacom18MediaPrivate Limited. material subsidiary has beenappointedasIndependentDirectorontheBoardofits Further, Rao, IndependentDirectoroftheCompany Ms.Nirupama Network18-Policy-for-Determining-Material-Subsidiaries.pdf. be accessedat The Policy hasbeenpostedontheCompany’swebsiteandmay companies Minutes ofBoardmeetingsunlistedsubsidiary investmentsmadeby Financial statements,inparticular $ WWPQFQDQQDO LQÀDW UQDWRV DQG WUDQVDFWLRQV VLJQLÀFDQW DOO FRQWDLQLQJ VWDWHPHQW $ are placedbeforetheCompany’sBoardregularly the Company’sAuditCommittee by companies,arereviewedquarterly unlisted subsidiary LVSODFHGEHIRUHWKH&RPSDQ\·V%RDUG$XGLW&RPPLWWHH companies enteredintobyunlistedsubsidiary arrangements borrowings oftheCompany.borrowings bothpresentandfutureforsecuring immovable properties, hypothecations createdbytheCompany onitsmovableand and in additiontotheexistingcharges, mortgages andhypothecations, 2013 tocreatecharges,mortgages and otherapplicableprovisions,ifanyoftheCompaniesAct, 3: Resolution ` VKDUH ZLWK ERQGV RU ZDUUDQWVLQRQHRUPRUHVHULHVWUDQFKHVDJJUHJDWLQJXSWR DQG ERQGV FRQYHUWLEOH FXUUHQF\ VHFXUHG IRU VXEVFULSWLRQV debentures,foreign LQYLWH unsecured redeemablenon-convertible RU RIIHU WR DSSURYDO madethereundertogive Companies Act,2013andrules 1000crores(Rupees Onethousandcrores). , bythefollowingmeans: KWWS ZZZQHWZRUNRQOLQHFRPUHSRUWVSROLFLHV SpecialResolution underSection180(1)(a) 40 ..No 04.00 p.m. 10 ..Yes (three) 11.00 a.m. tion to subscribe to Non-Convertible Debentures tion tosubscribeNon-Convertible CORPORATE GOVERNANCEREPORT Annual Report 2015-16 Annual Report e asfollows: 1 79 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW The details of the Voting Pattern in respect of Special Resolutions passed through Postal ballot was as under: Resolution 1: Promoter /Public No. of Shares No. of votes % of votes No. of Votes- No. of votes- % of votes in % of votes held polled polled on in favour against favour on votes against on outstanding polled votes polled shares (1) (2) (3)=[(2)/(1)]* (4) (5) (6)=[(4)/ (7)=[(5)/ 100 (2)]*100 (2)]*100 Promoter and Promoter Group 785211389 785211389 100.00 785211389 - 100.0000 - Public Institutional holders 56941551 24959377 43.83 24959377 - 100.0000 - Public-others 204795579 28364620 13.85 28364620 5783 99.97961 0.02039 Total 1046948519 838535386 80.09 838535386 5783 99.99931 0.00069 Resolution 2: Promoter /Public No. of Shares No. of votes % of votes No. of Votes- No. of votes- % of votes in % of votes held polled polled on in favour against favour on votes against on outstanding polled votes polled shares (1) (2) (3)=[(2)/(1)]* (4) (5) (6)=[(4)/ (7)=[(5)/ 100 (2)]*100 (2)]*100 Promoter and Promoter Group 785211389 785211389 100.00 785211389 - 100.0000 - Public Institutional holders 56941551 24959377 43.83 24730000 229377 99.08100 0.91900 Public-others 204795579 28363948 13.85 28355672 8276 99.97082 0.02918 Total 1046948519 838534714 80.09 838297061 237653 99.97166 0.02834 Resolution 3: Promoter /Public No. of Shares No. of votes % of votes No. of Votes- No. of votes- % of votes in % of votes held polled polled on in favour against favour on votes against on outstanding polled votes polled shares (1) (2) (3)=[(2)/(1)]* (4) (5) (6)=[(4)/ (7)=[(5)/ 100 (2)]*100 (2)]*100 Promoter and Promoter Group 785211389 785211389 100.00 785211389 - 100.0000 - Public Institutional holders 56941551 24959377 43.83 24759377 200000 99.19870 0.80130 Public-others 204795579 28363779 13.85 28354366 9413 99.96681 0.03319 Total 1046948519 838534545 80.09 838325132 209413 99.97503 0.02497 Note: All the aforesaid resolutions were passed with requisite majority. The Board had appointed Mr. Rupesh Agarwal, Partner, DPRQJRWKHUVWKDWPD\KDYHSRWHQWLDOFRQÁLFWZLWK Chandrasekaran Associates, Company Secretaries, as a the Company’s interests at large Scrutinizer to conduct the Postal Ballot voting process in a fair and transparent manner. During the period under review, the Company had not entered into material transaction with any related parties. (iii) Proposal for Postal Ballot There is no immediate proposal for passing any resolution None of the transactions with the related parties was in through Postal Ballot. None of the business proposed to be FRQÁLFWZLWKWKHLQWHUHVWRIWKH&RPSDQ\7KH&RPSDQ\KDV transacted at the ensuing Annual General Meeting is required made full disclosures of transactions with the related parties to be passed through Postal Ballot. set out in Note No 31 of Notes on Accounts, forming part of the Annual Report. 9. Disclosure , 'LVFORVXUHRQ PDWHULDOO\ VLJQLÀFDQW UHODWHG SDUW\ The related party transactions are entered into based transactions, i.e. the Company’s transactions that on various business exigencies, such as synergy in are of material nature, with its Promoters, Directors operations, sectoral specialization and the Company’s and the management, their relatives or subsidiaries, long term strategy for sectoral investments, optimisation 80 Network18 Media & Investments Limited transactionandon The policyonmaterialityofrelatedparty courseof transactionsareintheordinary All relatedparty theCompanyhasalsoadoptedfollowingNon- Further The detaileddisclosureoftheCompliancewithCorporate The Companyhascompliedwithallthemandatory III. There hasbeennoinstanceofnon-compliancebythe II. Details ofnon-compliancebytheCompany, Internal Auditors report totheAuditCommittee. Auditors report Internal TheCompanyhas aNon-ExecutiveChairman. QR FRQWDLQ &RPSDQ\ WKH RI VWDWHPHQWV 7KH ÀQDQFLDO oftheBoardisNon-Executiveandhegiven Chairman UHODWHGBSDUW\WUDQVDFWLRQVBSROLF\B1HWZRUNSGI KWWS ZZZQHWZRUNRQOLQHFRPUHSRUWVSROLFLHVPDWHULDOLW\B Transactionsdealing withRelated Party canbeaccessedat theCompany’sinterests. intended tofurther lengthbasis,andare business andarenegotiatedonarms and capitalresources. RIPDUNHWVKDUHSURÀWDELOLW\OHJDOUHTXLUHPHQWVOLTXLGLW\ of ScheduleIItoListingRegulations. E requirementsofRegulation 27readwithPart Mandatory Report. Governance 46 havemadeunderrespectiveheadsofthisCorporate WR 27 andClause(b)to(i)ofsubregulation(2) 5HJXODWLRQ LQ VSHFLÀHG UHTXLUHPHQWV *RYHUQDQFH requirements oftheListingRegulations. authority.or anyotherstatutory been imposedontheCompanybyStockExchangesorSEBI last threeyearsandhencenopenaltiesorstrictureshave Company onanymatterrelatedtocapitalmarketsduringthe during lastthreeyears. authority, onanymatterrelatedtocapitalmarkets by StockExchangesorSEBI,anyotherstatutory penalties andstricturesimposedontheCompany Reporting ofInternalAuditors Reporting Separate postsofChairmanand CEO DXGLWTXDOLÀFDWLRQVDQGDGYHUVHFRPPHQW 0RGLÀHG2SWLRQVLQ$XGLW5HSRUW duties. ofhis requiredtofacilitateperformance all thesupport 1RQ([HFXWLYH&KDLUPDQ·V2IÀFH . The Companypromotesethicalbehaviourinallitsbusiness WhistleBlowerPolicy IV. 7H PXW I QHHW Q [G HRLV QDRQV IRU DPRXQWV DQG GHSRVLWV À[HG RQ ,QWHUHVW RI DPRXQW 7KH VIII. Transfer ofamounts toInvestorsEducationand &RPSDQ\ WKH RI 2IÀFHU )LQDQFLDO &KLHI WKH DQG 7KH 0DQDJHU 9,,&(2&)2FHUWLÀFDWLRQ The natureofbusiness oftheCompanydoesnotinvolveany VI. Commodity PriceRisksandHedging EHHQ KDYH UHYLHZ XQGHU \HDU WKH IRU VWDWHPHQWV 7KH ÀQDQFLDO DisclosureofAccountingTreatment V. SROLFLHV1HWZRUN9LJLO0HFKDQLVPSROLF\SGI can beaccessedat Policy hasalsobeenpostedonthewebsiteofCompanyand no employeewasdeniedaccesstotheAuditCommittee.The oftheAuditCommittee.Duringyearunderreview,Chairman matterdirectlytothe anyreportable Employees mayalsoreport oftheAuditCommittee. which operatesunderthesupervision may bedisclosedtotheEthicsandComplianceTask Force matters regulations andtheCodeofConduct.Thereportable unethicalbehavior,free toreport violationsofapplicablelaws, Whistle BlowerPolicy underwhichdirectorsandemployeesare or unethicalbehaviour. TheCompanyhasaVigilMechanismand illegal activities andhasputinplaceamechanismforreporting for a period of 7 years have been transferred bytheCompany,for aperiodof7 years havebeentransferred debenture redemption etc,whichremainedunpaid or unclaimed Protection Fund DUH operating effectively. DQG PDLQWDLQHG HVWDEOLVKHG EHHQ KDYH UHSRUWLQJ ÀQDQFLDO W controlsfor Company’s CodeofConduct.(iv)properinternal RI YLRODWLYH RU LOOHJDO IUDXGXOHQW DUH ZKLFK \HDUSHULRG WKH (iii) therearenotransactionsenteredintobytheCompanyduring accounting standards,applicablelawsandregulationsthat of theCompany’saffairsandareincompliancewithexisting andfairview might bemisleading;(ii)togetherpresentatrue XQWUXH PDWHULDOO\ DQ\ statement oromitanymaterialfactcontainstatementsthat FRQWDLQ QRW GR L VWDWHPHQWV FRQÀUPLQJ ÀQDQFLDO %RDUG WKH DQG WR UHSRUWLQJ FRQWUROV ÀQDQFLDO LQWHUQDO RQ FHUWLÀFDWLRQ DQQXDOTXDUWHUO\ JLYH VXFKULVNVKHGJLQJDFWLYLWLHV Activities consistently appliedbytheCompany. Companies Act,2013.Theaccountingpolicieshavebeen other applicableprovisionsandtherelevantof in theCompanies(AccountingStandards)Rules, 2006and India andtocomplywiththeAccountingStandardsprescribed accordance withthegenerallyacceptedaccountingprinciplesin basis,in prepared underhistoricalcostconvention,onaccrual KWWS ZZZQHWZRUNRQOLQHFRPUHSRUWV CORPORATE GOVERNANCEREPORT Annual Report 2015-16 Annual Report inter alia . thatthe KH 81 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW within the stipulated time, to the Investors Education and 10. Means of Communication Protection Fund. The Company has been sending physical copies of the Annual Reports, notices and other communications through the prescribed Further, the Company has uploaded the details of unpaid and PRGHVRISRVWDJH+RZHYHULQFDVHZKHUHHPDLOLGRIDPHPEHULV unclaimed amounts lying with the Company on its website, and registered, such communications are sent to the registered email id of also on the website of the Ministry of Corporate Affairs. the members. IX. Corporate Social Responsibility The Quarterly and Annual Results of the Company are published in Relevant disclosure on Corporate Social Responsibility (CSR) WKH )LQDQFLDO ([SUHVV (QJOLVK 1HZVSDSHUV DQG -DQVDWWD +LQGL as required under the provisions of the Companies Act, 2013, is Newspapers) and are sent to the Stock Exchanges. given in the Directors’ Report forming part of the Annual Report. The quarterly and Annual Results along with additional information are 7KH&RPSDQ\KDVGLIIHUHQWSURJUDPVUXQQLQJIRUWKHEHQHÀWRILWV also posted on the website of the Company www.network18online.com employees and their families. Some of them are as follows: 2IÀFLDO 1HZV 5HOHDVHV DQG 3UHVHQWDWLRQV PDGH WR ,QVWLWXWLRQDO Family Healthcare and Insurance: In view of the rising costs Investors or to the analysts on the Company’s unaudited quarterly as of healthcare, the Company has taken a comprehensive group ZHOODVDXGLWHGDQQXDOÀQDQFLDOUHVXOWVLIDQ\DUHDOVRGLVSOD\HGRQ medical policy, covering all the employees and their families, to the website of the Company www.network18online.com mitigate the risks faced by its employees. The Company’s website (www.network18online.com) contains a The employee is further covered towards Life and Personal separate dedicated section ‘Investor Relation’ where shareholders’ Accident. We believe such coverage further reinforces our information is available. commitment towards the well-being and welfare of our employees and their families. The Annual Report containing, inter alia, Audited Financial Statement, Consolidated Financial Statements, Board’s Report, Auditors’ Report Voluntary contribution in times of need: As a company we also and other important information is circulated to members and others encourage our employees to contribute money voluntarily towards entitled thereto. The Management’s Discussion and Analysis (MD&A) supporting a colleague’s dire need which could be a family crisis or Report forms part of the Annual Report. a severe medical reason. The Company also steps in to help in such cases. NSE Electronic Application Processing System (NEAPS): The NEAPS is a web-based application designed by NSE for corporate. Support to NGOs: From time to time, the Company allows various $OOSHULRGLFDOÀOLQJVOLNHVKDUHKROGLQJSDWWHUQFRUSRUDWHJRYHUQDQFH NGOs to put stalls in the Company premises which aid the agencies report, media releases, statement of investor complaints among to sell their products, attain membership of our employees and RWKHUVDUHÀOHGHOHFWURQLFDOO\RQ1($36 join hands towards the cause, donate books & clothes, etc. In time of National calamities, the Company has aided the work of BSE Corporate Compliance & Listing Centre (the ‘Listing Centre’): various NGOs who provide on the ground support to the victims. BSE’s Listing Centre is a web-based application designed for corporate. Our employees too have stood up to support in such times. $OOSHULRGLFDOFRPSOLDQFHÀOLQJVOLNHVKDUHKROGLQJSDWWHUQFRUSRUDWH governance report, media releases, statement of investor complaints X. Code of Conduct for Prohibition of Insider Trading DPRQJRWKHUVDUHDOVRÀOHGHOHFWURQLFDOO\RQWKH/LVWLQJ&HQWUH The Company has also adopted the Code of Conduct to Regulate, Monitor and Report Trading by Insiders as required under ‘The SEBI Complaints Redress System (SCORES): The investor Securities and Exchange Board of India (Prohibition of Insider complaints are processed in a centralized web-based complaints Trading) Regulations, 2015, as amended from time to time. The redress system. The salient features of this system are : Centralized &RPSDQ\6HFUHWDU\LV&RPSOLDQFH2IÀFHULQWKLVUHJDUG database of all complaints, online upload of Action Taken Reports (ATRs) by concerned companies and online viewing by investors of actions taken on the complaint and its current status. 82 Network18 Media & Investments Limited 7KHUHLVQRRXWVWDQGLQJ*'5V$'5VDQG&RQYHUWLEOH%RQGV 7KH&RPSDQ\KDVQRWLVVXHGDQ\$'5V*'5VGXULQJWKH\HDU Bonds,Conversion Outstanding GDRs/ADRs/andConvertible year. Dividend Payment date: Annual GeneralMeeting. 2016 toSeptember29,(bothdaysinclusive),forthepurposeof members oftheCompanyshallremainclosedfromSeptember26, Dates ofBookClosure: 2016-17 isgivenbelow: Tentative CalendarsfordeclarationofresultstheFinancialYear Financial Calendar:[tentative] April 1toMarch31 Financial Year Forthcoming AnnualGeneralMeeting General ShareholderInformation 11. IROORZLQJHPDLOLGH[FOXVLYHO\IRULQYHVWRUVHUYLFLQJFRPSODLQW Designated Exclusiveemail-id: [email protected] [email protected] ac 1 073rdweekofApril2017 September30,2017 2016 3rdweekofJanuary 2ndweekofJuly2016 3rdweekofOctober2016 Annual GeneralMeeting March 31,2017 December 31,2016 September 30,2016 DateofMeeting/Declaration June 30,2016 ending forthequarter Results Thursday, September29,2016 11.30a.m.(IST) Day anddate Venue Time For queriesinrespectofsharesphysicalmode: For queriesonAnnualReport: under review. West, Mumbai–400016. Yashwant NatyaMandir, ManmalaTank Road, Matunga 1R'LYLGHQGLVSURSRVHGGHFODUHGGXULQJWKH Thesharetransferbooksandregisterof TheCompanyhasdesignatedthe V (BSE) andNationalStockExchangeofIndiaLimited(NSE). Equity SharesoftheCompanyarelistedandtradedonBSELimited Listing onStockExchangesandCode the Companyisheldindematerializedform. (India)Limited(CDSL).99.98%ofthetotalissuedcapital Services Limited(NSDL)andCentralDepository National SecuritiesDepository The Company’ssharesareadmittedintoboththedepositoriesi.e. Dematerialization ofshares and NSE. iscompiledfromthedataavailableonwebsiteofBSE *Source: Thisinformation PRQWKLQWKHODVWÀQDQFLDO\HDUDUHDVIROORZV Market PriceData: The CompanyhaspaidtheannuallistingfeestoStockExchanges. March’ 2016 2016 February’ 2016 January’ 2015 December’ 2015 November’ 2015 October’ 2015 September’ August’ 2015 July’ 2015 June’ 2015 May’ 2015 April’ 2015 Bandra –Kurla Complex,Bandra(E),Mumbai-400051 ([FKDQJH3OD]D3ORW1R&*%ORFN NSE P JTowers DalalStreet,Mumbai–400001 BSE Stock ExchangeandAddress Month ISIN ofEquityShares LK R5WV I TL\ KUV XLJ HDFK GXULQJ 6KDUHV (TXLW\ RI 5DWHV /RZ +LJK 59 58 87 39.00 38.25 38.70 45.25 38.30 50.00 45.80 45.25 46.25 49.20 50.10 47.80 45.90 60.00 47.00 46.00 49.25 63.90 47.85 47.25 60.05 52.70 46.00 53.00 64.00 53.25 47.05 49.40 52.80 51.65 53.00 53.00 53.25 59.40 49.50 49.80 51.70 63.35 53.00 59.35 61.20 49.80 63.50 61.00 61.25 67.25 60.50 67.25 S S S BSE NSE BSE NSE ihLow High CORPORATE GOVERNANCEREPORT Annual Report 2015-16 Annual Report NETWORK18 532798 Equity Shares Code/Symbol – ,1(+ ( ` Per Share) 83 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW Comparison of the stock performances with NSE NIFTY Comparison of the stock performances with BSE SENSEX Stock Performances [Indexed to 100 as on April 1, 2015] Stock Performances [Indexed to 100 as on April 1, 2015] 200 200 160 160 120 120 80 80 ,QGH[HG3ULFH1LIW\ 40 40 ,QGH[HG3ULFH6HQVH[ 0 0 01.04.15 30.04.15 31.05.15 30.06.15 31.07.15 31.08.15 30.09.15 31.10.15 30.11.15 31.12.15 31.01.16 29.02.16 31.03.16 01.04.15 30.04.15 31.05.15 30.06.15 31.07.15 31.08.15 30.09.15 31.10.15 30.11.15 31.12.15 31.01.16 29.02.16 31.03.16 NSE Network 18 BSE Network 18 The details of Company’s Registrars & Share Transfer Agents is as 6KDUHWUDQVIHUVDUHSURFHVVHGDQGVKDUHFHUWLÀFDWHVGXO\HQGRUVHGDUH given below: GHOLYHUHGZLWKLQDSHULRGRIÀIWHHQGD\VIURPWKHGDWHRIUHFHLSWVXEMHFW to documents being valid and complete in all respects. The Board has Registrars & Share Transfer Agents delegated the authority for approving transfer or transmission of upto Karvy Computershare Private Limited HTXLW\VKDUHVSHUFDVHWRWKH0DQDJHU&KLHI)LQDQFLDO2IÀFHU Karvy Selenium, Tower B, Plot 31-32, Financial District, Gachibowli DQG&RPSDQ\6HFUHWDU\MRLQWO\E\DQ\WZR$VXPPDU\RIWUDQVIHU 1DQDNUDPJXGD+\GHUDEDG transmission of securities of the Company so approved is placed at Ph: +91 40 - 6716 1700, Fax: +91 40 - 67161680 every Board Meeting. The Company obtains from Company Secretary email : [email protected], Website: www.karvy.com LQ3UDFWLFHKDOI²\HDUO\FHUWLÀFDWHWRWKHHIIHFWWKDWDOOFHUWLÀFDWHVKDYH Toll Free : 1800-425-8998 been issued within thirty days of the date of lodgement of the transfer, sub-division, consolidation and renewal as required under Regulation Share Transfer System RIWKH/LVWLQJ5HJXODWLRQVDQGÀOHVDFRS\RIWKHVDLGFHUWLÀFDWH with Stock Exchanges. Share transfers in physical form are registered and returned within the stipulated time, if documents are complete in all respects. The shares of the Company are freely tradable on BSE and NSE. Distribution of shareholding as on March 31, 2016 S. No. Category No. of Equity shareholders No. of Equity shares Percentage 1. Indian Public 73461 57652561 5.50 2. Bodies Corporate 1336 111303937 10.63 3. ),V0XWXDO)XQGV87,%DQNV 27 22867585 2.19 4. Promoters and Promoters Group 16 785211389 75.00 5. 15,V2&%V),,V)RUHLJQ%RG\&RUSRUDWH 552 41769653 3.99 6. Trusts 12 28143394 2.69 Total 75404 1046948519 100 84 Network18 Media & Investments Limited stipulated underlistingRegulations isattachedwiththisreport. &HUWLÀFDWHIURP0V1.- $VVRFLDWHV3UDFWLFLQJ&RPSDQ\6HFUHW &RPSOLDQFH&HUWLÀFDWH Distribution ScheduleasonMarch31,2016 Graphic presentationoftheShareholdingPattern asonMarch31,2016 00 0003104 64050 0.51 97.05 0.23 0.18 0.35 0.39 0.38 0.91 26841095.00 5080296940.00 12105560.00 9616925.00 18323600.00 0.63 0.49 20340700.00 0.34 19644485.00 0.36 47573290.00 0.97 1.84 3.32 92.05 475 371 254 272 731 (In Amount 1384 2506 69411 %ofHolders No.ofHolders 100001&ABOVE 50001-100000 40001-50000 8 30001-40000 7 20001-30000 6 10001-20000 5 5001–10000 4 Upto 5000 3 2 1 Category S. No. oa 50 0 244550 100 5234742595.00 100 75404 Total Promoters andPromoters Group IndianPublic BodiesCorporate 15,V2&%V),,V)RUHLJQ%RG\&RUSRUDWH 3.99 ),V0XWXDO)XQGV87,%DQNV 75.00 DU\FRQÀUPLQJFRPSOLDQFHZLWKWKHFRQGLWLRQVRI&RUSRUDWH*RYHU 2.69 5.50 10.63 2.19 Trusts CORPORATE GOVERNANCEREPORT Annual Report 2015-16 Annual Report ` %ofHolding ) QDQFHDV 85 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 'LUHFWRUV·3URÀOH &RPPLWWHHDQG5LVN0DQDJHPHQW&RPPLWWHHRI&LSOD/LPLWHG+H $ EULHI UHVXPH RI 'LUHFWRUV QDWXUH RI WKHLU H[SHUWLVH LQ VSHFLÀF is Member of Audit Committee and Nomination & Remuneration functional areas and names of companies in which they hold &RPPLWWHHRI79+RPH6KRSSLQJ1HWZRUN/LPLWHG 'LUHFWRUVKLSV 0HPEHUVKLSV &KDLUPDQVKLSV RI %RDUG &RPPLWWHHV and their shareholding in the Company are given below: +HLVQRWUHODWHGWRDQ\RWKHU'LUHFWRURU.H\0DQDJHULDO3HUVRQQHO of the Company. (a) Mr. Adil Zainulbhai (DIN: 06646490) aged about 63 years, is FXUUHQWO\ &KDLUPDQ RI 4XDOLW\ &RXQFLO RI ,QGLD +H UHWLUHG DV (b) Mr. Deepak Shantilal Parekh (DIN:00009078), 71 years, is Chairman of McKinsey, India after 34 years at McKinsey of which WKH &KDLUPDQ RI +RXVLQJ 'HYHORSPHQW )LQDQFH &RUSRUDWLRQ the last 10 years were spent in India. Mr. Adil has also co-edited Limited. In 1970, Mr. Parekh began his career with Ernst & Ernst the book, ‘Reimagining India’ which featured 60 authors including Management Consultancy Services in New York. Thereafter he prominent businessmen, academics, economists, authors and worked with Grindlays Bank and Chase Manhattan Bank for about MRXUQDOLVWV7KHERRNKDVEHHQLQQRQÀFWLRQLQ,QGLDRQLWV WKUHH\HDUVHDFKSULRUWRMRLQLQJ+')&LQ +LVDVWXWHEXVLQHVV release and #2 on Amazon’s International Business List in the DFXPHQDQGIDUVLJKWHGQHVVKDVQRWRQO\PDGH+')&WKHOHDGHU US. Mr. Adil grew up in Bombay and graduated in Mechanical LQ0RUWJDJHVEXWFUHDWHGDUREXVWPRUWJDJH,QGXVWU\LQ,QGLD+LV (QJLQHHULQJIURPWKH,QGLDQ,QVWLWXWHRI7HFKQRORJ\+HDOVRKDV YLVLRQKDVWUDQVIRUPHG+')&LQWRDÀQDQFLDOFRQJORPHUDWHZLWK DQ0%$IURP+DUYDUG%XVLQHVV6FKRRO0U=DLQXOEKDLLVYHU\ presence in Banking, Asset Management, Life Insurance, General DFWLYHLQFRPPXQLW\DQGVRFLDOFDXVHV+HLVD%RDUGPHPEHU ,QVXUDQFH5HDO(VWDWH9HQWXUH)XQGDQG(GXFDWLRQÀQDQFH of the Board of Trustees at Saifee Burhani Upliftment Trust (re-developing Bhendi Bazaar in Mumbai), Wockhardt Foundation, Mr. Parekh has been widely consulted by the Government of 3LUDPDO6ZDVWKL\D +HDOWK0DQDJHPHQW5HVHDUFK,QVWLWXWH +H India on a range of issues of national importance and has been a ZDV3UHVLGHQWRI+DUYDUG%XVLQHVV6FKRRO$OXPQL$VVRFLDWLRQ member of various Government appointed Advisory Committees of India and on the Global Advisory Board of the Booth School of DQG7DVN)RUFHVIRUKRXVLQJÀQDQFLDOVHUYLFHVFDSLWDOPDUNHWV Business at University of Chicago. telecom, energy, railways and infrastructure sector reforms. Mr. Adil Zainulbhai joined the Board of the Company on July Some of the international organizations which Mr. Parekh is +H LV &KDLUPDQ RI $XGLW &RPPLWWHH 6WDNHKROGHUV· associated with in an advisory capacity, include Indo US CEO Relationship Committee, Corporate Social Responsibility Forum, City of London, Indo – German Chamber of Commerce Committee and Risk Management Committee and Member of (IGCC), etc. the Nomination and Remuneration Committee of the Company. +HGRHVQRWKROGDQ\VKDUHVRIWKH&RPSDQ\LQKLVQDPH A man with a mission, Mr. Parekh’s philosophy on Corporate 6RFLDO 5HVSRQVLELOLW\ LV VLPSOH \HW SURIRXQG +H EHOLHYHV WKDW +HLV DOVR &KDLUPDQ RI WKH %RDUG RI 79 %URDGFDVW /LPLWHG if a company earns, it must also return to the society and that /LVWHG +HLVDQ,QGHSHQGHQW'LUHFWRURQWKH%RDUGRI5HOLDQFH companies owe a responsibility not just to shareholders, but also Industries Limited (Listed), Reliance Jio Infocomm Limited to all its stakeholders. (Listed), Larsen & Toubro Limited (Listed), Cipla Limited (Listed) 5HOLDQFH 5HWDLO 9HQWXUHV /LPLWHG DQG 79 +RPH 6KRSSLQJ Mr. Parekh is a recipient of the Padma Bhushan for his Network Limited. contributions to the national economy and public policy. Indian Industry, Government, International Organisations and +HLV&KDLUPDQRI$XGLW&RPPLWWHH&65&RPPLWWHHDQG5LVN Media have also honoured him with several awards including Management Committee and Member of Nomination and ‘Bundesverdienstkreuz’ Germany’s Cross of the Order of Merit, 5HPXQHUDWLRQ &RPPLWWHH RI 79 %URDGFDVW /LPLWHG +H LV one of the highest distinction by the Federal Republic of Germany &KDLUPDQ RI +XPDQ 5HVRXUFHV 1RPLQDWLRQ 5HPXQHUDWLRQ LQ´.QLJKWLQWKH2UGHURIWKH/HJLRQRI+RQRXUµRQHRI Committee and Risk Management Committee and Member of the the highest distinction by the French Republic in 2010, First $XGLW&RPPLWWHHRI5HOLDQFH,QGXVWULHV/LPLWHG+HLV&KDLUPDQ international recipient of the Outstanding Achievement Award of Audit Committee and Corporate Social Responsibility by Institute of Chartered Accountants in England and Wales, in Committee and Member of Nomination & Remuneration 2010. Committee of Reliance Jio Infocomm Limited and Reliance Retail 9HQWXUHV/LPLWHG+HLV&KDLUPDQRI1RPLQDWLRQ 5HPXQHUDWLRQ Mr. Parekh is a Commerce Graduate and holds an FCA degree Committee and Member of Corporate Social Responsibility from England and Wales. 86 Network18 Media & Investments Limited +HLVDGLUHFWRURQWKHERDUGRI'LDPLQHVDQG&KHPLFDOV/LPLW Mr. KajijoinedtheBoardofCompanyasanindependent 0DQDJHULDO .H\ (c) RU 'LUHFWRU RWKHU Mr. DQ\ Dhruv WR Subodh UHODWHG QRW Kaji LV +H %HVLGHV+')&*URXS&RPSDQLHVQDPHO\+RXVLQJ'HYHORSPHQW Mr. Parekh joinedtheBoardofCompanyonJuly7,2014. also Directoron the BoardofTV18BroadcastLimited (Listed) /LVWHG ZKHUHKHLVDOVRPHPEHURIWKH$XGLW&RPPLWWHH+HLV +HGRHVQRWKROGDQ\VKDUHVRIWKH&RPSDQ\LQKLVQDPH WKH RI Committee andRiskManagement CommitteeoftheCompany. &KDLUPDQ D LV +H Nomination andRemuneration CommitteeandMemberofAudit 1RYHPEHU RQ GLUHFWRU ,QGLDDQGDEURDG+LVH[SHUWLVHOLHVLQVWUDWHJLFSODQQLQJ +HKDVH[SHULHQFHLQHYDOXDWLQJDQGJXLGLQJEXVLQHVVSURMHFWVL RI,QGLD+HLVD)LQDQFLDO$GYLVRUDQG0DQDJHPHQW&RQVXOWDQW Accountants is anAssociateMemberoftheInstituteChartered degreeinCommercefromUniversityofMumbaiand a Bachelor’s PRUHWKDQ\HDUV0U.DMLLVD&KDUWHUHG$FFRXQWDQW+HKROG Finance DirectorofRaymond Ltd.Mr. Kajihasanexperienceof Personnel oftheCompany. Limited. Committee ofGlaxoSmithKlinePharmaceuticals &RUSRUDWLRQ/WG+HLVWKH&KDLUPDQRI6WDNHKROGHUV5HODWLRQVKL 6RFLDO5HVSRQVLELOLW\&RPPLWWHHRI+RXVLQJ'HYHORSPHQW)LQDQFH &RPPLWWHHRI6LHPHQV/LPLWHG+HLVD&KDLUPDQRI&RUSRUDWH /WGDQG6LHPHQV/LPLWHG+HLVWKHPHPEHURIWKH5HPXQHUDWLRQ *OD[R6PLWK.OLQH3KDUPDFHXWLFDOV/LPLWHG7KH,QGLDQ+RWHOV&R RI &RPPLWWHH $XGLW WKH RI PHPEHU DQG )RXQGDWLRQ 3DUHNK +7 the AuditCommitteeofMahindra&Limitedand Mr.corporates andMNC’s. Parekh of isalsothe Chairman Boards ofseveralIndian In additionheisalsoontheAdvisory &DQG\+RVSLWDO7UXVWDQG,QGLDQ,QVWLWXWHIRU+XPDQ6HWWOHPHQWV DOVR&KDLUPDQRI+73DUHNK)RXQGDWLRQDQG'LUHFWRURI%UHDFK Corporation andEconomicZonesWorld FZE.Mr. Parekh is Limited, Vedanta Indiaholdings Resources PLC,London,Fairfax boardsofDPWorldLtd. (Listed),andontheinternational 0DKLQGUD 0DKLQGUD/WG /LVWHG 7KH,QGLDQ+RWHOV&RPSDQ\ /LVWHG 6LHPHQV,QGLD/WG /LVWHG +HLVDOVRRQWKH%RDUGV 6\VWHPV %$( RI Ltd. Pvt.Ltd.,GlaxoSmithklinePharmaceuticals India (Services) &KDLUPDQ 1RQ([HFXWLYH WKH LV +H VHFWRUV is ontheBoardofseveralleadingcorporationsacrossdiverse /WG+')&(5*2*HQHUDO,QVXUDQFH&RPSDQ\/WG0U3DUHNK 0DQDJHPHQW $VVHW &RPSDQ\/WG /LVWHG +')&6WDQGDUG/LIH,QVXUDQFH&RPSDQ\ +')& /LVWHG /WG &RUSRUDWLRQ )LQDQFH Company inhisname. 5HPXQHUDWLRQ&RPPLWWHH+HGRHVQRWKROGDQ\VKDUHVRIWKH +HLVDOVRDPHPEHURI$XGLW&RPPLWWHHDQG1RPLQDWLRQDQG (DIN:00192559), 65 years, served as (DIN:00192559),65years,served RI HG S Q V (d) Rao Nirupama Ms. +HLVQRWUHODWHGWRDQ\RWKHU'LUHFWRURU.H\0DQDJHULDO3HU (e) Mr. Rajiv Krishan Luthra She isnotrelatedtoanyotherDirector, orKey Managerial Rao joinedtheBoardofCompanyonMarch Ms. Nirupama Ms. Rao isontheBoardofTV18BroadcastLimited(Listed), of theCompany. Singapore. /WG 3WH +ROGLQJV 3LQHVZRUWK RI 'LUHFWRU ([HFXWLYH EHHQ KDV KH /LPLWHG 7HOHÀOPV %DODML DQG /LPLWHG RI )DVKLRQV 'LUHFWRU &RORUSOXV D %RDUG RI DV VHUYHG WKH KDV RQ +H /LPLWHG 'LUHFWRU 3ULYDWH 7UDGH D 6XSHUDGG LV +H &RPPLWWHH 5HODWLRQVKLS Corporate SocialResponsibility CommitteeandStakeholders’ Committee, MemberoftheAuditCommitteeand oftheNomination&Remuneration where heisalsoChairman Portfolio Investments’. Mr.Portfolio Luthrais amemberoftheBoard on ‘Rationalization ofInvestment Routes andMonitoringForeign for ‘Reviewing InsiderTrading Regulations’ andSEBI’sCommittee 6RFLHW\0U/XWKUDLVDPHPEHURI6(%,·V+LJK/HYHO&RPPLWWHH of theBritishCommerceSociety andtheRoyal Geographical EHHQFRQIHUUHGZLWK$OXPQLRI+DUYDUG/DZ6FKRRODQGD)HOORZ RI projects.Mr.transactions includinginfrastructure \HDUV Luthrahas RYHU KDV +H ,QGLD LQ experience inadvisingclientsonavastrangeofcommercial ÀUP ODUJHVW WKH RI 2IÀFHV /DZ RQH /XWKUD ² /XWKUD RI 3DUWQHU 0DQDJLQJ )RXQGHU Personnel oftheCompany. name. 25, 2015.ShedoesnotholdanysharesoftheCompanyinher of Viacom18MediaPvt.Ltd., Audit CommitteeandNominationRemuneration Committee Viacom18 MediaPrivate Limited.Ms.Rao isamemberofthe Limited(Listed),ITCand KEC International issues andnegotiation. policyand in global andpracticeofgovernment in theformulation $PEDVVDGRUWR&KLQDDQGWRWKH8QLWHG6WDWHV+HUH[SHUWLVHOLH asIndia’s Washington, MoscowandBeijing. She hasserved inthemajorworldcapitalsof has hadthedistinctionofserving from2009to2011.She the highestpostinForeign Service, 'HOKL secondwomanForeign Secretary,and alsoasthecountry’s 1HZ LQ 2IÀFH )RUHLJQ WKH DW VSRNHVSHUVRQ ZRPDQ ÀUVW asIndia’s in1973.Sheserved joined theIndianForeign Service Literature fromtheMarathwadaUniversityofMaharashtra.She DegreeinEnglish Bangalore UniversityandhasaMaster’s %DFKHORU·V'HJUHHLQ(QJOLVK+RQRUVIURP0RXQW&DUPHO&ROOHJH (DIN:06954879),65years,holdsa (DIN:00022285),59years,isthe CORPORATE GOVERNANCEREPORT Annual Report 2015-16 Annual Report VRQQHO 87 V FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW Governors of Indian Institute of Corporate Affairs and a member has been a Trustee on the St Stephen’s Alumni Foundation. Mr. of Advisory Board of National Law University, Jodhpur. Mr. %DQVDOLQFROODERUDWLRQZLWK+DPPXUDEL 6RORPRQKDVDGYLVHG Luthra is also a member of the Internal Quality Assurance Cell CEOs across the spectrum of strategy, regulation, advocacy and RI1$/6$58QLYHUVLW\RI/DZ+\GHUDEDG+LVH[SHUWLVHOLHVLQ WKHPHGLD+HVHUYHGDV7UHDVXUHURI7KH(GLWRUV*XLOGRI,QGLD DGYLVLQJRQYDVWUDQJHRIFRPPHUFLDOOHJDOWUDQVDFWLRQV DQG)RXQGDWLRQRI0HGLD3URIHVVLRQDOV+LVDQDO\VLVRQSROLWLFR economic issues appears on various media platforms. Mr. Luthra joined the Board of the Company on November 27, DQG+HLVDPHPEHURI&65&RPPLWWHH+HGRHVQRWKROG Besides Network18 Media & Investments Limited, Mr. Bansal any shares of the Company in his name. also serves on the board of TV18 Broadcast Limited (Listed), 79 +RPH 6KRSSLQJ 1HWZRUN /LPLWHG 1: +61 +ROGLQJV +HLVDOVRDQ,QGHSHQGHQW'LUHFWRURQWKH%RDUGRI79%URDGFDVW Plc., AETN18 Media Private Limited, Viacom18 Media Private Limited (Listed), DLF Limited (Listed), Mylan Laboratories Limited Limited, Infomedia Press Limited (Listed), Panorama Television /LVWHG DQG/RGKL3URSHUW\&RPSDQ\/LPLWHG+HLV'LUHFWRURQ Private Limited, Indiacast Media Distribution Private Limited, the Board of Mylan Laboratories India Private Limited, Knowledge Prism TV Private Limited and IBN Lokmat News Private Limited. Cloud Private Limited, Paani Foundation, Singapore International $UELWUDWLRQ&HQWUHDQG6\PSKRQ\,QWHUQDWLRQDO+ROGLQJV/LPLWHG Mr. Bansal joined the Board of the Company on July 7, 2014. +HLV0HPEHURI$XGLW&RPPLWWHH1RPLQDWLRQ 5HPXQHUDWLRQ +HLV PHPEHU RI 6WDNHKROGHUV· 5HODWLRQVKLS &RPPLWWHH DQG Committee, Stakeholders Relationship Committee, CSR &RUSRUDWH *RYHUQDQFH &RPPLWWHH RI '/) /LPLWHG +H LV WKH Committee and Risk Management Committee of the Company. Chairman of Audit Committee and a member of Nomination & +HGRHVQRWKROGDQ\VKDUHVRIWKH&RPSDQ\LQKLVQDPH Remuneration Committee and Corporate Social Responsibility &RPPLWWHH RI 0\ODQ /DERUDWRULHV /LPLWHG +H LV PHPEHU RI +H LV &KDLUPDQ RI 6WDNHKROGHUV· 5HODWLRQVKLS &RPPLWWHH RI Audit Committee and Nomination and Remuneration Committee Infomedia Press Limited, member of Audit Committee of Infomedia RI /RGKL 3URSHUW\ &RPSDQ\ /LPLWHG +H LV WKH &KDLUPDQ RI Press Limited, member of Nomination & Remuneration Committee of $XGLW &RPPLWWHH RI 6\PSKRQ\ ,QWHUQDWLRQDO +ROGLQJV /LPLWHG Infomedia Press Limited, Indiacast Media Distribution Private Limited +H LV 0HPEHU RI $XGLW &RPPLWWHH 6WDNHKROGHUV· 5HODWLRQVKLS and Panorama Television Private Limited, member of Corporate Social Committee, Nomination & Remuneration Committee and Responsibility Committee of Panorama Television Private Limited Corporate Social Responsibility Committee of TV18 Broadcast and member of Accounts Committee and Allotment Committee Limited. RI 79 +RPH 6KRSSLQJ 1HWZRUN /LPLWHG +H LV DOVR &KDLUPDQ of Stakeholders’ Relationship Committee and member of Audit +HLV QRW UHODWHG WR DQ\ RWKHU 'LUHFWRU RU .H\ 0DQDJHULDO Committee, Nomination and Remuneration Committee, Corporate Personnel of the Company. Social Responsibility Committee and Risk Management Committee RI79%URDGFDVW/LPLWHG+HLVDOVRPHPEHURI$XGLW&RPPLWWHH (f) Mr. Rohit Bansal (DIN:02067348), 49 years, is an expert on Corporate Social Responsibility Committee and Nomination and WKHPHGLD+HKDVD%$ +RQV LQKLVWRU\IURP6W6WHSKHQ·V Remuneration Committee of Viacom18 Media Private Ltd. &ROOHJHDQGDQ$03 ZLWKDOXPQLVWDWXV IURP+DUYDUG%XVLQHVV School. As a British Chevening scholar funded by the FCO, +HLV QRW UHODWHG WR DQ\ RWKHU 'LUHFWRU RU .H\ 0DQDJHULDO he has undertaken the young print journalists programme at Personnel of the Company. 8QLYHUVLW\RI:HVWPLQVWHU+HKDVDOVRFRPSOHWHGWKHEXVLQHVV journalists programme at The Times Centre for Media Studies, (g) Mr. Vinay Chand Chhajlani (DIN: 00078665), 53 years, holds New Delhi, and attended The European Journalism Centre, %( +RQV LQ ((( IURP %,76 3LODQL ,QGLD DQG 06 LQ 3ULQWLQJ 0DDVWULFKWLQDSURJUDPPHIRU$VLDQ(GLWRUV+HLVDQDOXPRIWKH Technology from Rochester Institute of Technology (RIT) USA. European Union Visitors Programme and a distinguished fellow DWWKH2EVHUYHU5HVHDUFK)RXQGDWLRQ 25) 1HZ'HOKL+HLVDQ Mr. Chhajlani, after a brief career in Technology and Planning in honorary mentor for GenNext Ventures. Mr. Bansal has served DOHDGLQJ3ULQWLQJ&RPSDQ\LQ%RVWRQPRYHGEDFNWR,QGLD+H on the Board of the News Broadcasters Association (NBA) and founded SUVI Information Systems Private Limited, IT Solution has been Resident Editor of The Financial Express, New Delhi; Company in Indore in 1988. SUVI later renamed Diaspark Managing Editor (and later COO) of Independent News Service; Infotech Private Limited is a dual shore IT Services Company with Editor-Business, Zee News; Special Correspondent, Television RSHUDWLRQVLQ86$DQG,QGLD+HIRXQGHG:HEGXQLD&RP ,QGLD DQG6HQLRU%XVLQHVV&RUUHVSRQGHQW7KH7LPHVRI,QGLD+H 88 Network18 Media & Investments Limited +LQW HDHWD\ WH'UFR U H0DQDJHULDO .H\ (h) RU 'LUHFWRU RWKHU Mr. DQ\ Prasoon Joshi WR UHODWHG QRW LV +H +HLVRQWKH%RDUGRI,QIRPHGLD3UHVV/LPLWHG /LVWHG 3DQRU Mr. ChhajlanijoinedtheBoardofCompanyonJuly7, +HKDVNHHQLQWHUHVWLQ7HFKQRORJ\DQG0HGLDVSDFHZLWKZKLFK LQGXVWU\+HLVFUHGLWHGZLWKPDUU\LQJFUHDWLYLW\ZLWKVFDOHDQ VR KRQRXUHG EH WR Mr. andveteraninMediaAdvertisement Joshiisanexpert $VLDQ ÀUVW WKH &DWHJRU\ 7LWDQLXP LWV IRU Festival, President oftheCannesInternational 2014 the Jury D FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 5HJLVWHUHG2IÀFH$GGUHVV $GGUHVVIRU&RUUHVSRQGHQFH&RUSRUDWH2IÀFH Network18 Media & Investments Limited Network18 Media & Investments Limited Empire Complex, 1st Floor, 414 Senapati Bapat Marg, Express Trade Tower, Plot No.15-16 Lower Parel, Mumbai – 400 013 Sector-16-A, Noida, U. P. - 201 301 Tel: +91 22 40019000 Tel: +91 120 4341818 Fax: +91 22 66546925 Fax: +91 120 4324107 &,1 / 0+ 3/& E-mail: [email protected] &RPSOLDQFH2IÀFHU Registrars & Share Transfer Agents Mr. Yug Samrat Karvy Computershare Private Limited Company Secretary Karvy Selenium, Tower B, Plot 31-32, Financial District, Network18 Media & Investments Limited *DFKLERZOL1DQDNUDPJXGD+\GHUDEDG Express Trade Tower, Ph: +91 40 - 6716 1700, Fax: +91 40 - 67161680 Plot No.15-16, Sector 16-A, Noida, U.P. - 201 301 email: [email protected], Tel: +91 120 4341818 website: www.karvy.com Fax: +91 120 4324107 Toll Free No. : 1800-425-8998 E-mail: [email protected] 90 Network18 Media & Investments Limited Date: 20.04.2016 Place: NewDelhi &HUWLÀFDWHRI3UDFWLFH1R 5593 Membership No.FCS Proprietor Neelesh Kumar Jain Company Secretaries For andaccordingtotheexplanationsgivenus, On thebasisofourreviewandaccordingtobestinformation 4. :HIXUWKHUVWDWHWKDWVXFKFRPSOLDQFHLVQHLWKHUDQDVVXUDQ istheresponsibilityofmanagement.Ourexaminationwaslimitedt The complianceofconditionsCorporateGovernance 2. We proceduresbyNetwork18Media&InvestmentsLimited(theCo havereviewedtheimplementationofcorporategovernance 1. Network18 Media&InvestmentsLimited To theMembers, 2015 Regulations, Obligations AndDisclosureRequirements) of CorporateGovernanceunderSEBI(Listing &HUWLÀFDWHRQ&RPSOLDQFHZLWKWKHFRQGLWLRQV NKJ &Associates of regulation46andparaCDscheduleVtheSEBI(ListingObligationsAndDisclosuresRequirements) Regulations, 201 asstipulatedintheregulation17to27andclause(b)(i)ofsub-re complying withtheconditionsofCorporateGovernance, which themanagementhasconductedaffairsofCompany. DXGLWQRUDQH[SUHVVLRQRIWKHRSLQLRQRQWKHÀQDQFLDOVWDWHPHQ and implementationthereof, Itis adoptedbytheCompanyforensuringcomplianceofconditionsCorporateGovernance. asapprovedbytheBoardofDirectors. onCorporateGovernance, and report during theyearendedMarch31st2016,withrelevantrecordsanddocumentsmaintainedbyCompany, tousforo furnished FHDVWRWKHIXWXUHYLDELOLW\RIWKH&RPSDQ\QRUWKHHIÀFLHQF\ WVRIWKH&RPSDQ\ CORPORATE GOVERNANCEREPORT Annual Report 2015-16 Annual Report RUHIIHFWLYHQHVVZLWK Company hasbeen o procedures gulations (2) neitheran 5. ur review mpany) 91 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW Independent Auditor’s Report To the Members of Network18 Media & Investments Limited Report on the Standalone Financial Statements evidence about the amounts and the disclosures in the :H KDYH DXGLWHG WKH DFFRPSDQ\LQJ VWDQGDORQH ÀQDQFLDO financial statements. The procedures selected depend on the statements of Network18 Media & Investments Limited auditor’s judgment, including the assessment of the risks of (the ‘Company’), which comprise the Balance Sheet as at material misstatement of the financial statements, whether 0DUFK WKH 6WDWHPHQW RI 3URÀW DQG /RVV WKH &DVK due to fraud or error. In making those risk assessments, the Flow Statement for the year then ended and a summary of the auditor considers internal financial controls relevant to the VLJQLÀFDQWDFFRXQWLQJSROLFLHVDQGRWKHUH[SODQDWRU\LQIRUPDWLRQ Company’s preparation of the financial statements that give a true and fair view in order to design audit procedures that Management’s Responsibility for the Standalone are appropriate in the circumstances. An audit also includes Financial Statements evaluating the appropriateness of the accounting policies used 2. The Company’s Board of Directors is responsible for the matters and the reasonableness of the accounting estimates made by stated in Section 134(5) of the Companies Act, 2013 (the ‘Act’) the Company’s Directors, as well as evaluating the overall ZLWK UHVSHFW WR WKH SUHSDUDWLRQ RI WKHVH VWDQGDORQH ÀQDQFLDO presentation of the financial statements. VWDWHPHQWVWKDWJLYHDWUXHDQGIDLUYLHZRIWKHÀQDQFLDOSRVLWLRQ :HEHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXIÀFLHQW ÀQDQFLDO SHUIRUPDQFH DQG FDVK ÁRZV RI WKH &RPSDQ\ LQ and appropriate to provide a basis for our audit opinion on the accordance with the accounting principles generally accepted in VWDQGDORQHÀQDQFLDOVWDWHPHQWV ,QGLDLQFOXGLQJWKH$FFRXQWLQJ6WDQGDUGVVSHFLÀHGXQGHU6HFWLRQ 133 of the Act, read with Rule 7 of the Companies (Accounts) Opinion Rules, 2014 (as amended). This responsibility also includes 8. In our opinion and to the best of our information and according maintenance of adequate accounting records in accordance with WRWKHH[SODQDWLRQVJLYHQWRXVWKHDIRUHVDLGVWDQGDORQHÀQDQFLDO the provisions of the Act; safeguarding the assets of the Company; statements give the information required by the Act in the manner preventing and detecting frauds and other irregularities; selection so required and give a true and fair view in conformity with the and application of appropriate accounting policies; making accounting principles generally accepted in India, of the state of judgments and estimates that are reasonable and prudent; and affairs of the Company as at 31 March 2016, its loss and its cash design, implementation and maintenance of adequate internal ÁRZVIRUWKH\HDUHQGHGRQWKDWGDWH ÀQDQFLDOFRQWUROVWKDWZHUHRSHUDWLQJHIIHFWLYHO\IRUHQVXULQJWKH accuracy and completeness of the accounting records, relevant Report on Other Legal and Regulatory Requirements WRWKHSUHSDUDWLRQDQGSUHVHQWDWLRQRIWKHÀQDQFLDOVWDWHPHQWVWKDW 9. As required by the Companies (Auditor’s Report) Order, 2016 give a true and fair view and are free from material misstatement, (the ‘Order’) issued by the Central Government of India in terms of whether due to fraud or error. 6HFWLRQ RIWKH$FWZHJLYHLQWKH$QQH[XUH,DVWDWHPHQW RQWKHPDWWHUVVSHFLÀHGLQSDUDJUDSKVDQGRIWKH2UGHU Auditor’s Responsibility 2XUUHVSRQVLELOLW\LVWRH[SUHVVDQRSLQLRQRQWKHVHVWDQGDORQH 10. As required by Section 143(3) of the Act, we report that: ÀQDQFLDOVWDWHPHQWVEDVHGRQRXUDXGLW a. we have sought and obtained all the information and 4. We have taken into account the provisions of the Act, the H[SODQDWLRQVZKLFKWRWKHEHVWRIRXUNQRZOHGJHDQGEHOLHI accounting and auditing standards and matters which are were necessary for the purpose of our audit; required to be included in the audit report under the provisions of b. in our opinion, proper books of account as required by law the Act and the Rules made thereunder. have been kept by the Company so far as it appears from our 5. We conducted our audit in accordance with the Standards on H[DPLQDWLRQRIWKRVHERRNV $XGLWLQJ VSHFLÀHG XQGHU 6HFWLRQ RI WKH $FW 7KRVH F WKHVWDQGDORQHÀQDQFLDOVWDWHPHQWVGHDOWZLWKE\WKLVUHSRUW Standards require that we comply with ethical requirements are in agreement with the books of account; and plan and perform the audit to obtain reasonable assurance G LQRXURSLQLRQWKHDIRUHVDLGVWDQGDORQHÀQDQFLDOVWDWHPHQWV DERXWZKHWKHUWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWVDUHIUHHIURP FRPSO\ ZLWK WKH $FFRXQWLQJ 6WDQGDUGV VSHFLÀHG XQGHU material misstatement. Section 133 of the Act, read with Rule 7 of the Companies 6. An audit involves performing procedures to obtain audit (Accounts) Rules, 2014 (as amended); 92 Network18 Media & Investments Limited DWUXHDQGIDLUYLHZRQWKHÀQDQFLDOVWDWHPHQWVRIWKH&RPSDQ\ forthepurposeofreporting Based ontheauditproceduresperformed the yearended31March2016 ofevendatetothemembersNetwork18Media&InvestmentsLimitedonFinancialState To Report theIndependentAuditor’s Annexure I ii The Company hasnotgrantedanyloan,secured orunsecuredto (iii) WKH E\ YHULÀHG SK\VLFDOO\ EHHQ KDYH DVVHWV À[HG 7KH E The Companyhas maintainedproperrecordsshowingfull (a) (i) that: courseofaudit,wereport normal DQGWKHERRNVRIDFFRXQWDQGRWKHUUHFRUGVH[DPLQHGE\XVLQWK WDNLQJLQWRFRQVLGHUDWLRQWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYH ÀQDQFLDO VWDQGDORQH WKH WR 1RWH LQ GHWDLOHG DV L with respecttotheothermatters beincludedinthe g. financialcontrolswe havealsoauditedtheinternal f. on thebasisofwrittenrepresentationsreceivedfrom e. i) oftheCompanyislyingwiththirdparties The entireinventory (ii) areheldinthe The titledeedsofalltheimmovableproperties (c) management asattheyear-end. RZLK UWHFQUDLQKYEHRWLHEWKH E\ REWDLQHG EHHQ KDYH FRQÀUPDWLRQV ZULWWHQ ZKLFK IRU HH RLHRVFYUÀDLQ,RU SQR WKH RSLQLRQ RXU ,Q YHULÀFDWLRQ VXFK RQ QRWLFHG ZHUH management duringtheyearandnomaterialdiscrepancies À[HGDVVHWV includingquantitativedetailsandsituationof particulars, H[SODQDWLRQVJLYHQWRXV andaccordingtothe and tothebestofourinformation Companies (AuditandAuditors)Rules, 2014,inouropinion inaccordancewithRule 11ofthe Report Auditor’s opinion; and $SULODVSHU$QQH[XUH,,H[SUHVVHGXQPRGLILHG dated for theyearendedonthatdateandourreport the standalonefinancialstatementsofCompany as of31March2016inconjunctionwithouraudit (IFCoFR) oftheCompany over financialreporting 164(2) oftheAct; ofSection from beingappointedasadirectorinterms QRQHRIWKHGLUHFWRUVLVGLVTXDOLÀHGDVRQ0DUFK the directorsandtakenonrecordbyBoardofDirectors, name oftheCompany. its assets. having regardtothesizeofCompanyandnature UHDVRQDEOH LV DVVHWV À[HG WKH RI YHULÀFDWLRQ RI IUHTXHQF\ statements, theCompanyhasdisclosedimpactof QWRXV DQG H v) We havebroadlyreviewedthebooks ofaccountmaintainedbythe (vi) v In ouropinion,theCompanyhascompliedwithdirectives (v) In ouropinion,theCompanyhascompliedwithprovisionsof (iv) i contracts the Companydidnothaveanylong-term ii. i. iii. amounts, there hasbeennodelayintransferring Date :20April2016 Place :Noida Membership No.:70116 Partner per Registration No.:001076N/N500013 Firm’s Accountants Chartered (formerly Walker, Chandiok&Co) For Walker Chandiok&CoLLP B PSingh services andareof theopinionthat,primafacie, prescribed services Section 148oftheActinrespect ofCompany’sproductsand for themaintenanceofcostrecords undersub-section(1)of Company pursuanttotheRules madebytheCentral Government Tribunal, inthisregard. oranyother Law Tribunal BankofIndiaoranyCourt orReserve been passedbytheCompanyLawBoardorNational R KLIUDLQ QHSDDLQJYQ R VQRGU KDV RUGHU QR XV WR JLYHQ H[SODQDWLRQV DQG LQIRUPDWLRQ WKH WR as applicable,withregardtothedepositsaccepted.According Companies (AcceptanceofDeposits)Rules, 2014(asamended) 73 to76andotherrelevantprovisionsoftheAct BankofIndia,theprovisionsSections issued bytheReserve guarantees andsecurity. sections 185and186oftheActinrespectloans,investments, (c) oftheOrderarenotapplicable. Accordingly, theprovisionsofclauses 3(iii)(a),3(iii)(b)and3(iii) covered intheregistermaintainedunderSection189ofAct. FRPSDQLHVÀUPV/LPLWHG/LDELOLW\3DUWQHUVKLSVRURWKHUSDUWLH SHQGLQJOLWLJDWLRQVRQLWVVWDQGDORQHÀQDQFLDOSRVLWLRQ material foreseeablelosses;and including derivativecontractsforwhichtherewereany and Protection Fund bytheCompany. totheInvestorEducation required tobetransferred, Annual Report 2015-16 Annual Report STANDALONE ments for 93 V FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW accounts and records have been made and maintained. However, the Company does not pay any remuneration to the directors. ZHKDYHQRWPDGHDGHWDLOHGH[DPLQDWLRQRIWKHFRVWUHFRUGVZLWK $FFRUGLQJO\WKHSURYLVLRQVRIFODXVH [L RIWKH2UGHUDUHQRW a view to determine whether they are accurate or complete. applicable. (vii) (a) Undisputed statutory dues including provident fund, [LL ,QRXURSLQLRQWKH&RPSDQ\LVQRWD1LGKL&RPSDQ\$FFRUGLQJO\ HPSOR\HHV·VWDWHLQVXUDQFHLQFRPHWD[VDOHVWD[VHUYLFH FODXVH [LL RIWKH2UGHULVQRWDSSOLFDEOH WD[ GXW\ RI FXVWRPV GXW\ RI H[FLVH YDOXH DGGHG WD[ [LLL ,QRXU RSLQLRQ DOO WUDQVDFWLRQV ZLWK WKH UHODWHG SDUWLHV DUH LQ cess and other material statutory dues, as applicable, compliance with sections 177 and 188 of Act, where applicable, have generally been regularly deposited to the appropriate DQG WKH UHTXLVLWH GHWDLOV KDYH EHHQ GLVFORVHG LQ WKH ÀQDQFLDO authorities, though there has been a slight delay in a few statements etc., as required by the applicable accounting cases. Further, no undisputed amounts payable in respect standards. thereof were outstanding at the year-end for a period of more WKDQVL[PRQWKVIURPWKHGDWHWKH\EHFDPHSD\DEOH [LY 'XULQJWKH \HDU WKH &RPSDQ\ KDV QRW PDGH DQ\ SUHIHUHQWLDO allotment or private placement of shares or fully or partly E 7KHUHDUH QR GXHV LQ UHVSHFW RI LQFRPHWD[ VDOHVWD[ convertible debentures. VHUYLFH WD[ GXW\ RI FXVWRPV GXW\ RI H[FLVH DQG YDOXH DGGHGWD[WKDWKDYHQRWEHHQGHSRVLWHGZLWKWKHDSSURSULDWH [Y 7KH&RPSDQ\ KDV QRW HQWHUHG LQWR DQ\ QRQFDVK WUDQVDFWLRQV authorities on account of any dispute. with directors or persons connected with them. (viii) The Company has not defaulted in repayment of loans or borrowings [YL 7KH&RPSDQ\LVQRWUHTXLUHGWREHUHJLVWHUHGXQGHUVHFWLRQ,$ to any bank during the year. The Company has no loans or borrowings of the Reserve Bank of India Act, 1934. SD\DEOHWRDÀQDQFLDOLQVWLWXWLRQRUJRYHUQPHQWDQGQRGXHVSD\DEOH to debentures holders during the year. For Walker Chandiok & Co LLP L[ 7KH&RPSDQ\GLGQRWUDLVHPRQH\VE\ZD\RILQLWLDOSXEOLFRIIHU (formerly Walker, Chandiok & Co) or further public offer (including debt instruments). In our opinion, Chartered Accountants the term loans were applied for the purposes for which the loans Firm’s Registration No.: 001076N/N500013 were obtained. per B P Singh [ 1RIUDXG E\ WKH &RPSDQ\ RU RQ WKH &RPSDQ\ E\ LWV RIÀFHUV Partner or employees has been noticed or reported during the period Membership No.: 70116 covered by our audit. [L ,QRXU RSLQLRQ WKH SURYLVLRQV RI VHFWLRQ RI WKH $FW UHDG Place : Noida with Schedule V to the Act is not applicable to the Company as Date : 20 April 2016 Annexure II To the Independent Auditor’s Report of even date to the members of Network18 Media & Investments Limited on the Standalone Financial Statements for the year ended 31 March 2016 Independent Auditor’s report on the Internal Financial Management’s Responsibility for Internal Financial Controls under Clause (i) of Sub-section 3 of Section Controls 143 of the Companies Act, 2013 (the ‘Act’) 2. The Company’s Board of Directors is responsible for establishing ,QFRQMXQFWLRQZLWKRXUDXGLWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV DQGPDLQWDLQLQJLQWHUQDOÀQDQFLDOFRQWUROVEDVHGRQWKHLQWHUQDO of Network18 Media & Investments Limited (the ‘Company’) as FRQWURO RYHU ÀQDQFLDO UHSRUWLQJ FULWHULD HVWDEOLVKHG E\ WKH of and for the year ended 31 March 2016, we have audited the Company considering the essential components of internal LQWHUQDOÀQDQFLDOFRQWUROVRYHUÀQDQFLDOUHSRUWLQJ ,)&R)5 RIWKH control stated in the Guidance Note on Audit of Internal Financial Company of as of that date. Controls over Financial Reporting (the ‘Guidance Note’) issued 94 Network18 Media & Investments Limited . A Company’sIFCoFRisaprocessdesignedtoprovidereasonable 6. Reporting Meaning ofInternalFinancialControlsover &RPSDQ\· WKH RQ RSLQLRQ DQ H[SUHVV WR LV 2XU UHVSRQVLELOLW\ Auditors’ Responsibility :HEHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXIÀ 4. procedurestoobtainaudit Our auditinvolvesperforming (1) pertain tothemaintenanceofrecordsthat,inreasonabledetail, (1) pertain Company’s IFCoFRincludesthosepoliciesandproceduresthat accordance withgenerallyacceptedaccountingprinciples.A DQHDFRDHXWLWUDÀDFDFQUOWDZHUH WKDW FRQWUROV ÀQDQFLDO LQWHUQDO DGHTXDWH RI PDLQWHQDQFH These responsibilitiesincludethedesign,implementationand Accountants ofIndia(‘ICAI’). by theInstituteofChartered KSHDDLQ I QQLO WWPQV RHWUDSURHLQ DQG SXUSRVHV H[WHUQDO IRU UHSRUWLQJ VWDWHPHQWV ÀQDQFLDO ÀQDQFLDO RI SUHSDUDWLRQ RI WKH UHOLDELOLW\ WKH UHJDUGLQJ DVVXUDQFH ÀQDQFLDOLQIRUPDWLRQDVUHTXLUHGXQGHUWKH$FW of theaccountingrecords,andtimelypreparationreliable theaccuracyandcompleteness detection offraudsanderrors, policies, thesafeguardingofitsassets,preventionand of theCompany’sbusiness,includingadherenceto RSHUDWLQJHIIHFWLYHO\IRUHQVXULQJWKHRUGHUO\DQGHIÀFLHQWFRQ Company’s IFCoFR. and appropriatetoprovideabasisforourauditopiniononthe WKHÀQDQFLDOVWDWHPHQWVZKHWKHUGXHWRIUDXGRUHUURU including theassessmentofrisksmaterialmisstatement judgement, risk. Theproceduresselecteddependontheauditor’s DQG GHVLJQ WKH controlbasedontheassessed HYDOXDWLQJ operating effectivenessofinternal DQG WHVWLQJ DQG H[LVWV ZHDNQHVV understanding ofIFCoFR, assessingtheriskthatamaterial effectiveness. OurauditofIFCoFRincludedobtainingan evidence abouttheadequacyofIFCoFRandtheiroperating controls operatedeffectivelyinallmaterialrespects. adequate IFCoFRwereestablishedandmaintainedifsuch theaudittoobtainreasonableassuranceaboutwhether perform require thatwecomplywithethicalrequirementsandplan bytheICAI.ThoseStandardsandGuidanceNote issued WKHH[WHQWDSSOLFDEOHWRDQDXGLWRI,)&R)5DQGWKH*XLGDQFH1 and deemedtobeprescribedundersection143(10)oftheAct, with theStandardsonAuditing(‘standards’),issuedbyICAI IFCoFR basedonouraudit.We conductedourauditinaccordance FLHQW GXFW RWH V . Because oftheinherentlimitationsIFCoFR, includingthe 7. over FinancialReporting Inherent LimitationsofInternalFinancialControls Date :20April2016 Place :Noida Membership No.:70116 Partner per Registration No.:001076N/N500013 Firm’s Accountants Chartered (formerly Walker, Chandiok&Co) For In ouropinion,theCompanyhas,inallmaterialrespects, 8. Opinion Walker Chandiok&CoLLP B PSingh DVVHWVWKDWFRXOGKDYHDPDWHULDOHIIHFWRQWKHÀQDQFLDOVWDWHP unauthorised acquisition,use,ordispositionoftheCompany’s reasonable assuranceregardingpreventionortimelydetectionof of managementanddirectorstheCompany;(3)provide Company arebeingmadeonlyinaccordancewithauthorisations DFFHSWHG DFFRXQWLQJSULQFLSOHVDQGWKDWUHFHLSWVDQGH[SHQGLWXUHVRIWK JHQHUDOO\ ZLWK DFFRUGDQFH LQ VWDWHPHQWV ÀQDQFLDO RI preparation topermit that transactionsarerecordedasnecessary the assetsofCompany;(2)providereasonableassurance QHQO RWRRHÀDFDUSULJ UWUD VDOVHE HVWDEOLVKHG FULWHULD UHSRUWLQJ ÀQDQFLDO RYHU FRQWURO LQWHUQDO UHSRUWLQJ ÀQDQFLDO RYHU FRQWUROV were operatingeffectivelyasat31March2016,basedonthe ÀQDQFLDO LQWHUQDO VXFK DQG DFFXUDWHO\DQGIDLUO\UHÁHFWWKHWUDQVDFWLRQVDQGGLVSRVLWLRQV deteriorate. the degreeofcompliancewithpoliciesorproceduresmay become inadequatebecauseofchangesinconditions,orthat IFCoFR tofutureperiodsaresubjecttheriskthatmay and notbedetected.Also,projectionsofanyevaluationthe orfraudmayoccur controls, materialmisstatementsduetoerror of possibility ofcollusionorimpropermanagementoverride control statedintheGuidanceNoteissuedbyICAI. the Companyconsideringessentialcomponentsofinternal UHSRUWLQJ ÀQDQFLDO RYHU FRQWUROV ÀQDQFLDO LQWHUQDO DGHTXDWH Annual Report 2015-16 Annual Report STANDALONE HQWV 95 RI \ H FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW Balance Sheet As at 31 March 2016 ` in lakhs As at As at Notes 31 March 2016 31 March 2015 EQUITY AND LIABILITIES Shareholders’ funds Share capital 2 52,347.43 52,342.43 Reserves and surplus 3 2,10,058.50 2,19,127.70 Non-current liabilities Long-term borrowings 4 13.47 47.82 Other long-term liabilities 5 - 29.32 Long-term provisions 6 291.47 307.25 Current liabilities Short-term borrowings 7 64,623.34 55,036.05 Trade payables 8 Due to micro and small enterprises - - Others 2,830.11 2,735.97 Other current liabilities 9 1,429.41 1,684.45 Short-term provisions 10 21,793.34 21,779.57 3,53,387.07 3,53,090.56 ASSETS Non-current assets Fixed assets Tangible assets 11 1,361.82 985.22 Intangible assets 12 1,036.53 239.02 Intangible assets under development 125.35 147.71 Non-current investments 13 3,26,568.58 3,28,703.64 Long-term loans and advances 14 18,344.73 17,619.02 Other non-current assets 15 822.81 553.33 Current assets Current investments 16 - - Inventories 17 70.48 63.39 Trade receivables 18 2,735.09 2,054.49 Cash and bank balances 19 637.86 319.19 Short-term loans and advances 20 1,196.65 1,711.80 Other current assets 21 487.17 693.75 3,53,387.07 3,53,090.56 6LJQLÀFDQWDFFRXQWLQJSROLFLHV 6HHDFFRPSDQ\LQJQRWHVIRUPLQJSDUWRIWKHVHÀQDQFLDOVWDWHPHQWV This is as per our report of even date. For and on behalf of the Board of Directors of Network18 Media & Investments Limited For Walker Chandiok & Co LLP (formerly Walker, Chandiok & Co) Adil Zainulbhai Rohit Bansal Chartered Accountants Chairman Director Firm’s Registration No.:001076N/N500013 DIN : 06646490 DIN : 02067348 per B P Singh Hariharan Mahadevan Yug Samrat Partner *URXS&KLHI)LQDQFLDO2IÀFHU Company Secretary Membership No.:70116 M No. FCS6118 Place : Noida Place : Mumbai Date : 20 April 2016 Date : 20 April 2016 96 Network18 Media & Investments Limited For theyearended31March2016 6WDWHPHQWRI3URÀWDQG/RVV te noe23 24 22 (PSOR\HHEHQHÀWVH[SHQVH Cost ofrawmaterialsconsumed Expenses Total revenue Other income Revenue fromoperations Revenue iac ot 26 'HSUHFLDWLRQDQGDPRUWLVDWLRQH[SHQVH Finance costs 2WKHURSHUDWLQJH[SHQVHV annsprsae(ai n iue)30 6HHDFFRPSDQ\LQJQRWHVIRUPLQJSDUWRIWKHVHÀQDQFLDOVWDWHPHQW 6LJQLÀFDQWDFFRXQWLQJSROLFLHV (Face valueof pershare(Basicanddiluted) Earnings Loss fortheyear ([FHSWLRQDOLWHPV Loss beforeexceptionalitems Total expenses lc od Place:Mumbai Date:20April2016 Date :20April2016 Place :Noida Membership No.:70116 Partner per imsRgsrto o:006/501 I 6440DIN:02067348 DIN:06646490 Registration No.:001076N/N500013 Firm’s hree conat himnDirector Chairman Accountants Chartered hsi sprorrpr fee ae For andonbehalfoftheBoardDirectors (formerly Walker, Chandiok&Co) For ofevendate. This isasperourreport BPSnhHrhrnMhdvnYug Samrat Mahadevan Hariharan BPSingh Walker Chandiok&CoLLP ` 5 each) V *URXS&KLHI)LQDQFLDO2IÀFHU dlZiuba Rohit Bansal Adil Zainulbhai Network18 Media&InvestmentsLimited Notes 25 27 28 29 31 March2016 Year ended (,9.0 (68,755.17) (6,782.47) (9,096.10) (9,096.10) 1,2.2 15,453.09 16,727.02 7609 8,670.62 7,630.92 6799 7,432.07 6,729.93 4332 3,399.40 4,313.23 5233 5,752.52 5,283.34 6362 5,649.84 6,346.25 207 205.85 1,238.55 200.73 900.99 534 445.48 583.47 (.7 (6.57) (0.87) M No.FCS6118 Company Secretary Annual Report 2015-16 Annual Report - 61,972.70 - 31 March2015 STANDALONE Year ended ` inlakhs 97 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW &DVK)ORZ6WDWHPHQW For the year ended 31 March 2016 ` in lakhs Year ended Year ended 31 March 2016 31 March 2015 A. CASH FLOW FROM OPERATING ACTIVITIES Loss for the year (9,096.10) (68,755.17) Adjustments for : 'HSUHFLDWLRQDQGDPRUWLVDWLRQH[SHQVH 583.47 499.49 /RVVRQGLVSRVDORIÀ[HGDVVHWV 34.89 2.14 5HYHUVDORIHPSOR\HHVWRFNFRPSHQVDWLRQH[SHQVHV - (36.69) Finance costs 5,283.34 5,752.52 Bad debts/balances written off/provided for 304.07 110.23 ([FHVVSURYLVLRQVXQGU\EDODQFHVZULWWHQEDFN (318.07) - 3URÀWRQVDOHRIFXUUHQWLQYHVWPHQWV - (126.29) Provision for diminution in value of Investment - 20,810.95 )L[HGDVVHWVZULWWHQRII - 458.97 Provision for doubtful advances - 39,886.77 Interest income (324.37) (673.81) Operating loss before working capital changes (3,532.77) (2,070.89) Adjustments for : &KDQJHVLQDVVHWVRWKHUWKDQÀ[HGDVVHWVDQGLQYHVWPHQWV (403.01) 152.32 Changes in liabilities other than borrowings 94.07 (1,742.54) Cash generated used in operations (3,841.72) (3,661.11) 7D[HVSDLG QHWRIUHIXQG (278.81) (281.30) Cash used in operating activities (A) (4,120.53) (3,942.41) B. CASH FLOW FROM INVESTING ACTIVITIES 3XUFKDVHRIÀ[HGDVVHWV LQFOXGLQJFDSLWDODGYDQFHVDQGLQWDQJLEOHDVVHWVXQGHUGHYHORSPHQW (1,861.44) (739.42) 6DOHRIÀ[HGDVVHWV 60.07 3.76 Sale of long-term investments: 2,345.06 2,740.00 Sale of current investments - 7,091.29 Purchase of long-term investments: (210.00) (6,155.43) Debenture application money paid (300.00) - ,QYHVWPHQWLQ UHGHPSWLRQRIÀ[HGGHSRVLWVZLWKEDQNV (282.72) 794.65 (Increase)/decrease in other bank balances (1.65) 13.43 Interest received 55.00 414.32 &DVKÁRZIURP XVHGLQ LQYHVWLQJDFWLYLWLHV % (195.68) 4,162.60 98 Network18 Media & Investments Limited For theyearended31March2016 &DVK)ORZ6WDWHPHQW .CASHFLOW FROMFINANCING ACTIVITIES C. 6HHDFFRPSDQ\LQJQRWHVIRUPLQJSDUWRIWKHVHÀQDQFLDOVWDWHPHQW 6LJQLÀFDQWDFFRXQWLQJSROLFLHV lc od Place:Mumbai Date:20April2016 Date :20April2016 Place :Noida Membership No.:70116 Partner per imsRgsrto o:006/501 I 6440DIN:02067348 DIN:06646490 Registration No.:001076N/N500013 Firm’s hree conat himnDirector Chairman Accountants Chartered (formerly Walker, Chandiok&Co) For 7KLVLVWKHFDVKÁRZVWDWHPHQWUHIHUUHGWRLQRXUUHSRUWRIHYH BPSnhHrhrnMhdvnYug Samrat Mahadevan Hariharan BPSingh Walker Chandiok&Co LLP Unpaid dividendaccounts Other bankbalances accounts incurrent Balance withbanks Cash andcashequivalents Components ofcashandbankbalances Proceeds fromissueofequityshares(includingsecuritiespremium) Interest paid Unpaid zero coupon partly convertible debentureaccounts convertible Unpaid zerocouponpartly indepositaccounts &DVKÁRZIURP XVHGLQ ÀQDQFLQJDFWLYLWLHV & Proceeds fromborrowings Proceeds from/(repayment)ofunclaimedmatureddeposits Payment ofunpaiddividend Repayment ofborrowings Unpaid rightissuemoney Cheques onhand Cash andcashequivalentsasatthebeginningofyear Net increase/(decrease)incashandequivalents(A+B+C) Unpaid non-cumulative convertible redeemablepreferencesharesaccount Unpaid non-cumulativeconvertible Cash onhand Cash andcashequivalentsasattheendofyear Cash andbankbalancesasperNote19 Balance withbanktowardsdepositswhichremainunclaimed QGDWH V *URXS&KLHI)LQDQFLDO2IÀFHU dlZiuba Rohit Bansal Adil Zainulbhai Network18 Media&InvestmentsLimited For andonbehalfoftheBoard of Directors 31 March2016 Year ended (,1.5 (8,377.46) (5,313.35) 4305 (5,953.88) 4,350.51 9572 14,020.29 9,587.29 (32)(11,026.12) (63.25) 383 314.05 348.35 383 314.05 348.35 295 5.14 289.51 678 319.19 637.86 127 - 192.70 (678.58) 112.34 340 6,047.74 314.05 227 - 282.72 (.2 (6.58) (4.42) M No.FCS6118 Company Secretary 7.1 313.85 73.21 114.57 31.90 8.1 - 82.31 (5,733.69) 34.30 67 - 0.20 6.79 0.13 Annual Report 2015-16 Annual Report - 1.36 - - 3.08 - - 0.70 - 31 March2015 STANDALONE Year ended ` inlakhs 99 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 1. Basis of preparation returns. Revenue from subscription of magazines is 7KHÀQDQFLDO VWDWHPHQWV KDYH EHHQ SUHSDUHG XQGHU KLVWRULFDO recognised on delivery of magazines to subscribers. cost convention, on accrual basis, in accordance with the generally accepted accounting principles in India and to comply LY 7UDQVDFWLRQV WKDW LQYROYH WKH H[FKDQJH RI JRRGV RU ZLWK WKH $FFRXQWLQJ 6WDQGDUGV VSHFLÀHG XQGHU 6HFWLRQ services for other goods or services in respect of of the Companies Act, 2013 (the ‘Act’) read with Rule 7 of web operations are accounted for in accordance with the Companies (Accounts) Rules, 2014 (as amended). The Guidance Note on Accounting for Dot-com Companies accounting policies have been consistently applied by Network18 issued by the Institute of Chartered Accountants of Media & Investments Limited (the ‘Company’). India (ICAI). Barter transactions are recorded at fair value, being the value at which similar transactions are 6XPPDU\RIVLJQLÀFDQWDFFRXQWLQJSROLFLHV H[HFXWHGZLWKRWKHUSDUWLHV a. Use of estimates 7KHSUHSDUDWLRQRIÀQDQFLDOVWDWHPHQWVLQFRQIRUPLW\ZLWK Y 5HYHQXHIURPVDOHRIVWDOOVDWH[KLELWLRQVRUJDQLVHGE\WKH generally accepted accounting principles in India (‘Indian &RPSDQ\LVUHFRJQLVHGDIWHUFRPSOHWLRQRIH[KLELWLRQ GAAP’) requires judgments, estimates and assumptions to be made that effect the reported amount of assets and vi. Business support service income is recognised after liabilities, disclosure of contingent liabilities and the reported rendering of services. DPRXQWRILQFRPHDQGH[SHQVHVGXULQJWKH\HDU'LIIHUHQFH between the actual results and estimates are recognised in vii. Dividend income is accounted for when the right to the period in which the results are known / materialise. receive dividend is established. b. Revenue recognition YLLL 3URÀWORVVRQVDOHRILQYHVWPHQWVDUHFRPSXWHGRQWKH i. Advertising and sponsorship revenue from websites is basis of weighted average cost on date of disposal of recognised proportionately over the contractual period investments. of advertisement, commencing when the advertisement is placed on the website, unless the Company has to L[ ,QWHUHVWLQFRPH LV UHFRJQLVHG RQ WLPH SURSRUWLRQDWH meet performance conditions in which case revenue is basis, taking into account the amount outstanding and recognised using the proportionate completion method. the rate applicable. Advertising revenue from magazines is recognised in the period in which the magazines are delivered and are c. Fixed assets accounted net of commission and discounts. Revenue Tangible assets from sponsorships of event is recognised after the Tangible assets are stated at their original cost of acquisition completion of event. and installation less accumulated depreciation and accumulated LPSDLUPHQWLIDQ\$OOGLUHFWH[SHQVHVDWWULEXWDEOHWRDFTXLVLWLRQ ii. Revenue from mobile short messaging and other related and installation of assets are capitalised. services are recognised based on usage of services by the mobile subscribers and share of revenue agreed Intangible assets with the mobile network operators. Acquired brands/domain names and computer software are capitalised at cost of acquisition and disclosed as intangible iii. Sale of magazines includes revenue from circulation of assets and are stated at their original cost less accumulated magazines and subscription of magazines. Revenue from amortisation and accumulated impairment, if any. circulation of magazines includes sales to retail outlets/ newsstands, which are subject to returns. The Company Website development costs that provide additional functions records these retail sales upon delivery, net of estimated or features to the Company’s website are capitalised. returns. These estimated returns are based on historical 0DLQWHQDQFH H[SHQVHV RU FRVWV WKDW GR QRW UHVXOW LQ QHZ return rates and are revised as necessary based on actual IHDWXUHVRUIXQFWLRQVDUHH[SHQVHGDVLQFXUUHG 100 Network18 Media & Investments Limited Raw materials:Lowerofcostandnetrealisablevalue. isvaluedasfollows: Inventory e. Inventory onastraightlinebasisover Intangible assetsareamortised VWUDLJKWOLQH RQ SURYLGHG LV DVVHWV À[HG 'HSUHFLDWLRQ RQ 'HSUHFLDWLRQDPRUWLVDWLRQ G fortheyearended31March2016 information and otherexplanatory 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV :RUNLQSURJUHVVDQGÀQLVKHGJRRGV /RZHURIFRVWDQGQHW costof An assetistreatedasimpairedwhenthecarrying Impairmentoftangibleandintangibleassets f. Net realisablevalueistheestimatedsellingpricein where therisksand rewards incidental Lease arrangements Operating h. lease Leases atlowerofcostandquoted investmentsare carried Current g. Investments HRFVLWH QVHSRXWLZLK K\ LO EH ZLOO LQFRUSRUDWHGDUHH[SHFWHGWREHVROGDWRUDERYHFRVW&RVW WKH\ ZKLFK LQ SURGXFWV ÀQLVKHG WKH LI FRVW EHORZ for useintheproductionofinventoriesarenotwrittendown FHQYDWDEOHWD[HV+RZHYHUPDWHULDOVDQGRWKHULWHPVKHOG Cost ofrawmaterialsconsistspurchasecostandnon- the estimatedusefuleconomiclife. basis asperScheduleIIoftheAct. is determined onaweightedaveragebasis. is determined DVVHWH[FHHGVLWVUHFRYHUDEOHYDOXH$QLPSDLUPHQWORVVLV tomakethesale. completion andestimatedcostsnecessary courseofbusiness,lessestimatedcosts ordinary average basis. operatingcapacity.normal onweighted Costisdetermined basedon ofmanufacturingoverheads and aproportion realisable value.Costincludesdirectmaterialsandlabour FKDUJHGWRWKH6WDWHPHQWRI3URÀWDQG/RVVLQWKH\HDULQ are recognisedas operatingleases.Leaserentals under to ownershipofan assetsubstantiallyvestwiththe lessor is madeonlyifsuchadeclineother thantemporary. investments Provision fordiminutioninthevalueoflongterm investmentsarestatedatcost. / fairvalue.Long-term has beenachangeintheestimateofrecoverableamount. loss recognisedinprioraccountingperiodisreveredifthere LPSDLUPHQW 7KH LPSDLUHG DV LGHQWLÀHG LV DVVHW DQ ZKLFK The Company’sEmployeesProvident Fund schemeisa (PSOR\HHEHQHÀWV L Provident Fund 6KRUWWHUPHPSOR\HHEHQHÀWVH[SHFWHGWREHSDLGRUSD\DEOH 6KRUWWHUPHPSOR\HHEHQHÀWV %QÀV RSLLJ RJ HP RSQDHDEVHQFHV FRPSHQVDWHG WHUP ORQJ FRPSULVLQJ %HQHÀWV Compensated absences 7H UVQYOH I KROJWRXGU XK GHÀQHG VXFK XQGHU REOLJDWLRQ WKH RI YDOXH SUHVHQW 7KH The Companyprovidesforgratuity, apost-employment Gratuity HQG RWLXLQ OQ7H RSQ·FQUEWRWR FRQWULEXWLRQ &RPSDQ\·V 7KH SODQ FRQWULEXWLRQ GHÀQHG and Lossonastraight-linebasis,overtheleaseterm. RSHUDWLQJOHDVHVDUHUHFRJQLVHGLQWKH6WDWHPHQWRI3URÀW undiscounted basis. Q [KQH RWH HYFV HGUG V HRQVG RQ UHFRJQLVHG LV UHQGHUHG VHUYLFHV WKH IRU H[FKDQJH LQ settlement occurs. or or settlementarerecognisedwhenthecurtailment 6WDWHPHQWRI3URÀWDQG/RVV*DLQDQGORVVRQFXUWDLOPHQW Actuarial gainsandlossesarerecognisedimmediatelyinthe byanindependentactuarialattheperiodend. performed Unit CreditMethod,onthebasisofanactuarialvaluation usingtheProjected compensated absencesisdetermined FRQVWLWXWHRWKHUORQJWHUPHPSOR\HHEHQHÀWV7KHOLDELOLW\IRU RI3URÀWDQG/RVVGXULQJWKHSHULRGLQZKLFKWKHHPSOR\HH the Employees’Provident Fund ischargedtotheStatement when the curtailment orsettlementoccurs. when thecurtailment orsettlementarerecognised Gain andlossoncurtailment UHFRJQLVHGLPPHGLDWHO\LQWKH6WDWHPHQWRI3URÀWDQG/RVV as atthebalancesheetdate.Actuarialgains/lossesare securities is basedonthemarketyieldsgovernment thepresentvalueofobligation used fordetermining YDOXHRIWKHHVWLPDWHGIXWXUHFDVKÁRZV7KHGLVFRXQWUDWH GHÀQHGEHQHÀWSODQFRYHULQJHOLJLEOHHPSOR\HHV WKHÀQDOREOLJDWLRQ7KHREOLJDWLRQLVPHDVXUHGDWWKHSUHVHQW entitlement andmeasureseachunitseparatelytobuildup renders therelatedservice. VHUYLFHDVJLYLQJULVHWRDGGLWLRQDOXQLWRIHPSOR\HHEHQHÀW independent actuarial,whichrecogniseseachperiodof YDOXDWLRQ DFWXDULDO RQ byan using theprojectedunitcreditmethodperformed EDVHG GHWHUPLQHG LV SODQ EHQHÀW Annual Report 2015-16 Annual Report STANDALONE 101 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 j. Foreign currency transactions settle the obligation and a reliable estimate can be made. Transactions in foreign currencies are recorded at the Provisions are not discounted to their present value and are H[FKDQJH UDWH SUHYDLOLQJ RQ WKH GDWH RI WKH WUDQVDFWLRQ determined based on the best estimate required to settle ([FKDQJH GLIIHUHQFHV RQ IRUHLJQ H[FKDQJH WUDQVDFWLRQV the obligation at the reporting date. These estimates are settled during the period are recognised in the Statement of UHYLHZHGDWHDFKUHSRUWLQJGDWHDQGDGMXVWHGWRUHÁHFWWKH 3URÀWDQG/RVV current best estimates. Monetary items denominated in foreign currency and Contingent liabilities are disclosed unless the possibility of outstanding at the balance sheet date are translated at the RXWÁRZRIUHVRXUFHVLVUHPRWH H[FKDQJHUDWHSUHYDLOLQJRQWKDWGDWHDQGUHVXOWLQJH[FKDQJH GLIIHUHQFHV DUH UHFRJQLVHG LQ WKH 6WDWHPHQW RI 3URÀW DQG Contingent assets are neither recognised nor disclosed in Loss. WKHÀQDQFLDOVWDWHPHQWV k. Income tax Q %RUURZLQJFRVWV 7D[H[SHQVHFRPSULVHVFXUUHQWWD[DQGGHIHUUHGWD[&XUUHQW Borrowing costs that are directly attributable to acquisition, WD[ LV GHWHUPLQHG LQ DFFRUGDQFH ZLWK WKH SURYLVLRQV RI construction or production of a qualifying asset are ,QFRPH7D[$FW capitalised as part of the cost of that asset when it is SUREDEOHWKDWWKH\ZLOOUHVXOWLQIXWXUHHFRQRPLFEHQHÀWVWR 'HIHUUHG WD[ LV PHDVXUHG EDVHG RQ WKH WD[ UDWHV DQG WKH the Company and the costs can be measured reliably. WD[ ODZV HQDFWHG RU VXEVWDQWLYHO\ HQDFWHG DW WKH EDODQFH VKHHWGDWH'HIHUUHGWD[DVVHWVDUHUHFRJQLVHGRQO\WRWKH 2WKHUERUURZLQJFRVWVDUHUHFRJQLVHGDVDQH[SHQVHLQWKH H[WHQWWKDWWKHUHLVUHDVRQDEOHFHUWDLQW\WKDWVXIÀFLHQWIXWXUH period in which they are incurred. WD[DEOHLQFRPHZLOOEHDYDLODEOHDJDLQVWZKLFKVXFKGHIHUUHG WD[DVVHWVFDQEHUHDOLVHG,QVLWXDWLRQZKHUHWKH&RPSDQ\ o. Earnings per share has unabsorbed depreciation or carry forward of losses, Basic earnings per share are calculated by dividing the net GHIHUUHG WD[ DVVHWV DUH UHFRJQLVHG RQO\ LI WKHUH LV YLUWXDO SURÀWRUORVVIRUWKHSHULRGDWWULEXWDEOHWRHTXLW\VKDUHKROGHUV certainty supported by convincing evidence that they can be by the weighted average number of equity shares outstanding UHDOLVHGDJDLQVWIXWXUHWD[DEOHSURÀWV during the period. The weighted average number of equity shares outstanding during the period is adjusted for events l. Employee stock options plan such as bonus issue, bonus element in a rights issue, share Accounting value of stock options is determined on the split, and reverse share split (consolidation of shares) that EDVLV RI ´,QWULQVLF 9DOXHµ UHSUHVHQWLQJ WKH H[FHVV RI WKH have changed the number of equity shares outstanding, PDUNHW SULFH RQ WKH GDWH RI JUDQW RYHU WKH H[HUFLVH SULFH without a corresponding change in resources. of the options granted under the “Employees Stock Option Scheme” of the Company, and is being amortised as For the purpose of calculating diluted earnings per share, “Deferred employee compensation” on a straight-line basis WKH QHW SURÀW RU ORVV IRU WKH SHULRG DWWULEXWDEOH WR HTXLW\ over the vesting period in accordance with the SEBI (Share shareholders and the weighted average number of shares %DVHG(PSOR\HH%HQHÀWV 5HJXODWLRQVDQG*XLGDQFH outstanding during the period are adjusted for the effects of Note 18 “Share Based Payments” issued by the Institute of all dilutive potential equity shares. Chartered Accountants of India. p. Cash and cash equivalents m. Provisions and contingencies &DVKDQGFDVKHTXLYDOHQWVIRUWKHSXUSRVHVRIFDVKÁRZ Provisions are recognised in the accounts when there is statement comprise cash at bank and in hand and short- a present obligation as a result of past event(s) and it is term investments with an original maturity of three months SUREDEOH WKDW DQ RXWÁRZ RI UHVRXUFHV ZLOO EH UHTXLUHG WR or less. 102 Network18 Media & Investments Limited Detailsofshareholdersholdingmorethan5%equitysharesintheCompany d 7KHUHDUHQRERQXVVKDUHVLVVXHGDQGVKDUHVERXJKWEDFNGXULQJ The Companyhasonlyoneclassofequityshareshavingfacevalue Descriptionofthe rights, preferencesandrestrictionsattachedtoequityshares b period ofthe equitysharesoutstandingatthebeginningandendofreporting Reconciliation a fortheyearended31March2016 information and otherexplanatory 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV $JJUHJDWHQXPEHURIERQXVVKDUHVLVVXHGVKDUHLVVXHGSXUVX F 1,55,00,000 (previousyear1,55,00,000)preferencesharesof Total issued,subscribedandfullypaid-upsharecapital 1,04,69,48,519 (previousyear1,04,68,48,519)equitysharesof Issued, subscribedandfullypaid-upcapital 1,05,00,000 (previousyear1,05,00,000)preferencesharesof 5,00,00,00,000 (previousyear5,00,00,00,000)equitysharesof Authorised sharecapital 2 Share Capital 11,00,000 (previousyear11,00,000)preferencesharesof are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion toth distributionofallpreferentialamounts,inproportion are eligibletoreceivetheremainingassetsofCompanyafter respects includingbutnotlimitedtoentitlementfordividend,bonusissueandrightsissue.Intheeventofliquidation, ERXJKWEDFNGXULQJWKHSHULRGRIÀYH\HDUVLPPHGLDWHO\SUHFHGLQ Equity sharesattheendofyear $GG 6KDUHVLVVXHGRQH[HUFLVHRIHPSOR\HHVWRFNRSWLRQV Equity sharesatthebeginningofyear Name ofshareholder Particulars Particulars Equity shares RRB Mediasoft Private Limited RRB Mediasoft Equity sharesof Allotted as fully paid up under scheme of arrangement Allotted asfullypaidupunderschemeofarrangement Equity shares: RB Mediasoft Private Limited RB Mediasoft RB MediaHoldingsPrivate Limited Watermark InfratechPrivate Limited Colorful MediaPrivate Limited Colorful Adventure MarketingPrivate Limited ` 5 eachfullypaidup ` 100 each ` ` 10 each 200 each ` ` 5 eachfullypaidup 5 each 2015-16 WKHSHULRGRIÀYH\HDUVLPPHGLDWHO\SUHFHGLQJ0DUFK DQWWRDFRQWUDFWZLWKRXWSD\PHQWEHLQJUHFHLYHGLQFDVKDQGVK J0DUFK - - - 3,936 2,36,95,044 36,79,356 - - - ` 10,94,1 2374 ,46,859 52,342.43 1,04,68,48,519 52,347.43 1,04,69,48,519 10,84,1 2324 ,46,655 52,333.33 1,04,66,66,535 52,342.43 1,04,68,48,519 SHUVKDUH$OOWKHH[LVWLQJHTXLW\VKDUHVUDQNSDULSDVVXLQ 1,51,2 1.6 1,51,2 10.37% 10,85,15,123 10.36% 10,85,15,123 1,56,1 1.8 1,56,1 12.19% 12,75,60,417 12.18% 12,75,60,417 1,52,8 1.8 1,52,8 12.18% 12,75,28,586 12.18% 12,75,28,586 1,52,8 1.8 1,52,8 12.18% 12,75,28,287 12.18% 12,75,28,287 1,52,8 1.8 1,52,8 12.18% 12,75,28,287 12.18% 12,75,28,287 1,52,8 1.8 1,52,8 12.18% 12,75,28,287 12.18% 12,75,28,287 No. ofshares 10,0 .0 18,8 9.10 1,81,984 5.00 1,00,000 Financial year(aggregateno.ofshares) As at31March2016 As at31March2016 041 031 021 2011-12 2012-13 2013-14 2014-15 Shares No. of % ofholding ( ` inlakhs) Amount 31 March2016 27,5.0 2,73,650.00 2,73,650.00 25,0.0 2,50,000.00 2,50,000.00 5,4.3 52,342.43 52,347.43 2,0.0 21,000.00 21,000.00 5,4.3 52,342.43 52,347.43 1500 1,550.00 1,550.00 1100 1,100.00 1,100.00 As at o fsae %ofholding No. ofshares Annual Report 2015-16 Annual Report As at31March2015 As at31March2015 Shares No. of equity shareholders eir shareholding. 31 March2015 STANDALONE ( ` ` inlakhs) inlakhs Amount DUHV As at 103 DOO FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 As per records of the Company including its register of shareholders /members and other declaration received from shareholders regarding EHQHÀFLDOLQWHUHVWWKHDERYHVKDUHKROGLQJUHSUHVHQWVERWKOHJDODQGEHQHÀFLDORZQHUVKLSRIWKHVKDUHV e Shares reserved for issue under options and other commitments As on 31 March 2016, 650 (previous year 1,01,300) Employees Stock Options were outstanding under the Employee Stock Option Plans of the Company. Each option would entitle the holder thereof to subscribe to one equity share of ` 5 each in the Company. For details refer note 39. ` in lakhs As at As at 31 March 2016 31 March 2015 3 Reserves and surplus a. Capital reserve Balance at the beginning /end of the year 69.07 69.07 b. Securities premium account Balance at the beginning of the year 3,33,777.40 3,33,671.93 $GG $PRXQWUHFHLYHGWUDQVIHUUHGSXUVXDQWWRH[HUFLVHODSVHRIHPSOR\HHVWRFNRSWLRQV 85.78 105.47 Balance at the end of the year 3,33,863.18 3,33,777.40 c. Employee stock options outstanding Gross employee stock compensation for options granted in earlier years 59.65 59.65 /HVV WUDQVIHUUHGWRVHFXULWLHVSUHPLXPRQH[HUFLVHRIVWRFNRSWLRQV 58.88 - Less: transferred to reserves and surplus on lapse of vested options 0.77 - Balance at the end of the year - 59.65 d. General reserve Balance at the beginning of the year 1,134.10 1,134.10 $GG $PRXQWWUDQVIHUUHGRQH[SLU\RIRSWLRQV 0.77 - Balance at the end of the year 1,134.87 1,134.10 e. 'HÀFLWLQWKHVWDWHPHQWRISURÀWDQGORVV 'HÀFLWDWWKHEHJLQQLQJRIWKH\HDU (1,15,912.52) (47,093.34) Add: Loss for the year (9,096.10) (68,755.17) Add: Depreciation adjustment (refer notes 11 and 12) - (64.01) 1HWGHÀFLWLQWKHVWDWHPHQWRISURÀWDQGORVV (1,25,008.62) (1,15,912.52) Total 2,10,058.50 2,19,127.70 ` in lakhs As at As at 31 March 2016 31 March 2015 4 /RQJWHUPERUURZLQJV Secured Vehicle loans: from banks 13.47 47.82 Total 13.47 47.82 6HFXULW\GHWDLOVIRUERUURZLQJVFRYHUHGXQGHUQRWHVDQG LVDVIROORZV i. Vehicle loans amounting to ` 28.83 lakhs (previous year ` 92.08 lakhs) are secured by way of hypothecation of the asset thus purchased. The interest ranges from 9.97% to 10.36% per DQQXP7KHDIRUHPHQWLRQHGORDQVDUHUHSD\DEOHLQHTXDOPRQWKO\LQVWDOPHQWVDQGWKHÀQDO instalment is due for repayment in September 2019. 7KHDIRUHPHQWLRQHGYHKLFOHORDQKDVEHHQFODVVLÀHGDVKHUHXQGHU I. Term loans under long term borrowings 13.47 47.82 II. Term loans under other current liabilities 15.36 44.26 28.83 92.08 104 Network18 Media & Investments Limited . Commercial papersarerepayablewithintwomonths. d. arerepayablewithinoneyear.Loans fromrelatedparties c. %DQNRYHUGUDIWIURP FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 ` in lakhs As at As at 31 March 2016 31 March 2015 9 Other current liabilities Current maturity of long-term borrowings 15.36 44.26 Interest accrued but not due on borrowings 38.47 68.48 Unpaid dividend 6.79 11.21 Unclaimed matured deposits and interest accrued on unclaimed deposits 282.72 170.38 Statutory dues payable 259.00 222.95 Employee related payable 483.31 444.05 Magazine subscription money refundable - 69.43 Payable for capital goods 12.86 30.10 Advance from customers 245.24 516.87 Security deposits received 85.66 104.12 Others - 2.60 Total 1,429.41 1,684.45 ` in lakhs As at As at 31 March 2016 31 March 2015 10 Short-term provisions 3URYLVLRQIRUHPSOR\HHEHQHÀWV UHIHUQRWH 7.16 9.59 Provision for sales returns (refer note a below) 59.98 43.78 Provision for indemnity (refer note b below) 21,726.20 21,726.20 Total 21,793.34 21,779.57 Note a Provision for sales returns Opening balance 43.78 43.68 Addition during the year 186.07 240.27 Amount utilised during the year (169.87) (240.17) Closing balance 59.98 43.78 3URYLVLRQLVUHFRJQLVHGIRUH[SHFWHGUHWXUQVRQSURGXFWVVROGGXULQJWKH\HDUEDVHGRQSDVWH[SHULHQFH RIOHYHORIUHWXUQV,WLVH[SHFWHGWKDWPRVWRIWKLVSURYLVLRQZLOOEHXWLOLVHGLQWKHQH[WÀQDQFLDO\HDU Note b Provision for indemnity %DODQFHDVDWWKHEHJLQQLQJHQGRIWKH\HDU 21,726.20 21,726.20 During the year ended 31 March 2011, Roptonal Limited, Cyprus (‘Roptonal’) a subsidiary of the Company’s jointly controlled entity, Viacom18 Media Private Limited made a public offer for purchase of entire issued capital of The Indian Film Company Limited, Guernsey (‘TIFC’). The Company and its subsidiary, Network18 Holdings Limited, Mauritius (‘Network18 Holdings’), in their capacity as shareholders in TIFC accepted the public offer. Further, pursuant to an agreement between Roptonal and Network18 Holdings, Network18 Holdings has agreed to indemnify 5RSWRQDODJDLQVWWKHDPRXQWLIDQ\E\ZKLFKWKHQHWFDVKJHQHUDWHGE\7,)&IURPLWVH[LVWLQJÀOPOLEUDU\LQUHVSHFWRIWKHSHULRGIURPWKHGDWH RQZKLFKWKHDIRUHPHQWLRQHGSXEOLFRIIHUEHFRPHVXQFRQGLWLRQDOXSWR-XO\LVOHVVWKDQWKHQHWDVVHWYDOXHRIWKHÀOPOLEUDU\DVSHUWKH TIFC’s therein mentioned accounts for the year ended 31 March 2010. 1HWZRUN+ROGLQJVKDVDOVRDJUHHGWRLQGHPQLI\5RSWRQDODJDLQVWFHUWDLQ,QGLDQWD[OLDELOLWLHVWKDWPD\SRWHQWLDOO\DULVHLQ7,)&RU5RSWRQDOLQ UHVSHFWRIFHUWDLQZLWKKROGLQJWD[UHFRYHULHVVWDWHGLQ7,)&·VÀQDQFLDOVWDWHPHQWVDQGRWKHUWD[HVUHODWLQJWRWKHVDOHRI1HWZRUN+ROGLQJ·V shares in TIFC. The aforementioned agreement further provided that if Network18 Holding does not undertake the indemnity obligations agreed in the agreement, the indemnity shall be provided by the Company. 'XULQJWKHSUHYLRXV\HDUVEDVHGRQWKHDVVHVVPHQWRIHVWLPDWHGFDVKÁRZRIWKHLQGHPQLÀHGDVVHWVWKH&RPSDQ\KDVHVWLPDWHGWKHOLDELOLW\DV ` 21,726.20 lakhs. 106 Network18 Media & Investments Limited and other explanatory information fortheyearended31March2016 information and otherexplanatory 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV ` in lakhs Land Leasehold Leasehold Buildings Plant and Furniture and Vehicles Information Total land improvements equipment À[WXUHV technology and related equipments 11 Tangible assets Gross block Balance as at 1 April 2014 6.10 0.40 995.41 176.30 384.51 533.31 433.91 3,447.18 5,977.12 Additions - - 136.32 - 31.22 4.67 49.78 169.00 390.99 Disposals / adjustments - - - (88.60) - (17.29) (27.68) (3.55) (137.12) Balance as at 1 April 2015 6.10 0.40 1,131.73 87.70 415.73 520.69 456.01 3,612.63 6,230.99 Additions - - - - 13.78 3.60 - 781.36 798.74 Disposals / adjustments ------(152.54) - (152.54) Balance as at 31 March 2016 6.10 0.40 1,131.73 87.70 429.51 524.29 303.47 4,393.99 6,877.19 Accumulated depreciation Balance as at 1 April 2014 - - 851.67 68.88 237.68 431.19 154.94 3,230.06 4,974.42 Retained earning adjustment (refer note below) - - - - 17.15 3.59 - 43.18 63.92 Charge for the year - - 34.91 2.93 52.15 28.34 74.26 110.03 302.62 Reversal on account of disposals / adjustments - - - (38.36) - (9.96) (43.84) (3.03) (95.19) Balance as at 1 April 2015 - - 886.58 33.45 306.98 453.16 185.36 3,380.24 5,245.77 Charge for the year - - 48.28 1.26 47.59 11.29 45.75 173.01 327.18 Reversal on account of disposals / adjustments ------(57.58) - (57.58) Balance as at 31 March 2016 - - 934.86 34.71 354.57 464.45 173.53 3,553.25 5,515.37 Net Block Balance as at 31 March 2015 6.10 0.40 245.15 54.25 108.75 67.53 270.65 232.39 985.22 Balance as at 31 March 2016 6.10 0.40 196.87 52.99 74.94 59.84 129.94 840.74 1,361.82 Notes: D 3XUVXDQWWRWKHHQDFWPHQWRIWKH&RPSDQLHV$FW WKH¶$FW· WKH&RPSDQ\KDGHIIHFWLYHIURP$SULOUHDVVHVVHGWKHXVHIXOOLIHRILWVÀ[HG assets and had computed depreciation and amortisation with reference to the useful life of assets as recommended in Schedule II of the Act. Consequently, depreciation and amortisation for the year ended 31 March 2015 was lower by ` ODNKVDQGQHWSURÀWZDVKLJKHUE\` 53.19 lakhs. Further, based on the transitional provision provided in Schedule II, an amount of ` 64.01 lakhs was adjusted with the opening reserves during the year ended 31 March 2015. Annual Report 2015-16 Annual Report (b) The charge for the year ended 31 March 2015 amounting to ` 302.62 lakhs and ` 196.87 lakhs inter-alia towards tangible and intangible assets respectively, included an amount of ` ODNKVZKLFKZDVLQFOXGHGXQGHUH[FHSWLRQDOLWHPRZLQJWRREVROHVFHQFHLPSDLUPHQW DFFHOHUDWHGGHSUHFLDWLRQDQGDPRUWLVDWLRQ STANDALONE 107 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 ` in lakhs Computer %UDQGWUDGHPDUNV Total VRIWZDUH DQGZHEVLWHFRVWV 12 Intangible assets Gross block Balance as at 1 April 2014 1,192.62 1,257.03 2,449.65 Additions 102.80 39.56 142.36 Balance as at 1 April 2015 1,295.42 1,296.59 2,592.01 Additions 279.89 773.91 1,053.80 Balance as at 31 March 2016 1,575.31 2,070.50 3,645.81 Accumulated amortisation Balance as at 1 April 2014 1,064.89 1,091.14 2,156.03 Retained earning adjustment (refer note 11 (a)) 0.09 - 0.09 Charge for the year 141.37 55.50 196.87 Balance as at 1 April 2015 1,206.35 1,146.64 2,352.99 Charge for the year 82.58 173.71 256.29 Balance as at 31 March 2016 1,288.93 1,320.35 2,609.28 Net Block Balance as at 31 March 2015 89.07 149.95 239.02 Balance as at 31 March 2016 286.38 750.15 1,036.53 ` in lakhs As at As at 31 March 2016 31 March 2015 13 Non-current investments Long-term investments YDOXHGDWFRVWXQOHVVVWDWHGRWKHUZLVH Trade investments Equity shares : quoted Investment in subsidiaries (a) 87,70,35,062 (previous year 87,70,35,062) equity shares of ` 2 each in TV18 Broadcast 2,56,223.60 2,56,223.60 Limited (b) 2,54,42,694 (previous year 2,54,42,694) equity shares of ` 10 each fully paid up in 24,664.84 24,664.84 Infomedia Press Limited (formerly known as ‘Infomedia 18 Limited’) Less: Provision for diminution (24,618.95) (24,618.95) ii. Investment in others %HQHÀFLDU\LQWHUHVWLQ1HWZRUN0HGLD7UXVW SUHYLRXV\HDU VKDUHVRI 18,157.46 18,157.46 the Company) Less: Provision for diminution (13,881.95) (13,881.95) Aggregate amount of quoted investments 2,60,545.00 2,60,545.00 Equity shares : Unquoted Investment in subsidiaries 15,00,000 (previous year 15,00,000) equity shares of USD 1 each fully paid up in Network18 678.90 678.90 Holdings Limited, Mauritius 1,00,001 (previous year 1,00,001) equity shares of USD 1 each fully paid up in Television Eighteen 39.97 39.97 Media and Investments Limited, Mauritius 2,581 (previous year 2,581) equity shares of ` 10 each fully paid up in Big Tree Entertainment 489.82 489.82 Private Limited 108 Network18 Media & Investments Limited and other explanatory information fortheyearended31March2016 information and otherexplanatory 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV Shares of Preference 2,44,497 (previousyear2,44,497)0.001%Non-cumulativeCompulsorilyConvertible Less: Provision fordiminution each inCapital18FincapPrivate Limited 25,48,000 (previous year 25,48,000) 15% optionally fully Convertible Preference Sharesof 25,48,000 (previousyear25,48,000)15%optionallyfullyConvertible fully paidupinTelevision EighteenMediaandInvestmentsLimited,Mauritius preferencesharesofUSD1 4,91,18,691 (previousyear4,91,18,691)optionallyfullyconvertible Privatefully paidupinBigTree Limited Entertainment 1,156 (previous year 1,156) compulsorily convertible preferencesharesSeriesBof 1,156 (previousyear1,156)compulsorilyconvertible Investment insubsidiaries Preference shares:Unquoted-Trade Investments \HDUV1DWLRQDO6DYLQJV&HUWLÀFDWHV Investment inothers-NonTrade Less: Provision fordiminution Limited 10,000 (previousyear10,000)equitysharesof Eighteen MauritiusLimited, 1,22,95,000 (previousyear1,22,95,000)equitysharesofUSD1eachfullypaidupinTelevision Less: Provision fordiminution 50,000 (previousyear50,000)equitysharesof grgt muto nutdivsmns(e fpoiinfrdmnto) 6035 68,158.64 66,023.58 Market valueofquotedinvestments Aggregate provisionforthediminutioninvalueofinvestments Total Aggregate amountofunquotedinvestments(netprovisionfordiminution) Limited of UpperTierIIBondsofYes30 (previousyear30)unsecuredRedeemable Bank Non-Convertible, Network18 HoldingsLimitedofUSD1each Debenturesof 1,20,00,000 (previousyear1,20,00,000)ZerocouponOptionallyfullyConvertible Less: Provision fordiminution Investments Private Limitedof DebenturesofRRB 2,60,400 (previousyear2,60,400)ZerocouponOptionallyfullyConvertible Less: Provision fordiminution Digital18 MediaLimitedof Debenturesof 4,79,500 (previousyear4,58,500)ZerocouponOptionallyfullyConvertible Capital18 FincapPrivate Limitedof Debenturesof 7,54,902 (previousyear9,89,402)ZerocouponOptionallyfullyConvertible Debentures andbonds-Unquoted ` ` 100 eachinTV18HomeShoppingNetworkLimited 10,00,000 each ` 1,000 each ` 1,000 each ` 1,000 each ` ` 10 eachfullypaidupinCapital18FincapPrivate 10 eachfullypaidupinDigital18MediaLimited ` 1,000 each ` 10 31 March2016 32,6.8 3,28,703.64 3,26,568.58 35,2.3 2,72,215.03 3,59,527.23 (1072)(11,007.27) (11,007.27) (,0.0 (2,604.00) (4,320.00) (2,604.00) (4,320.00) 1,9.1 15,533.91 13,398.91 4,0.6 49,809.66 49,809.66 2,3.4 24,938.74 24,938.74 1,0.7 11,007.27 11,007.27 2,0.8 20,103.38 20,103.38 5,3.7 56,438.17 56,438.17 2850 2,815.07 2,815.01 4775 4,767.54 4,767.54 1663 1,606.32 1,606.32 4750 4,585.00 4,795.00 7199 7,179.90 2,604.00 7,179.90 2,604.00 5440 7,789.01 5,444.01 300 300.00 300.00 (.0 (1.00) (5.00) (1.00) (5.00) As at 50 5.00 5.00 10 1.00 1.00 Annual Report 2015-16 Annual Report - 0.06 - 31 March2015 STANDALONE ` inlakhs As at 109 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 ` in lakhs As at As at 31 March 2016 31 March 2015 14 Long-term loans and advances (unsecured, considered good unless otherwise stated) Capital advances 26.38 12.36 Security deposits 98.54 115.44 Loans and advances - to related parties 2,186.86 2,041.97 - Others Considered good 12,340.30 12,340.30 Considered doubtful 37,953.94 37,953.94 Less : provision for doubtful loans and advances (37,953.94) (37,953.94) Loans and advances to staff 0.12 5.60 Other loans and advances ,QFRPHWD[SDLG QHWRISURYLVLRQV` 300.30 lakhs (previous year ` 300.30 lakhs)) 3,377.08 3,098.27 3UHSDLGH[SHQVHV 15.44 3.78 Others - 1.30 Debenture application money paid 300.00 - Total 18,344.73 17,619.02 ` in lakhs As at As at 31 March 2016 31 March 2015 15 Other non-current assets Interest accrued but not due on loans 820.39 551.02 5HVWULFWHGÀ[HGGHSRVLWV 2.42 2.31 Total 822.81 553.33 )L[HGGHSRVLWVRI` 2.42 lakhs (previous year ` ODNKV DUHXQGHUOLHQZLWKEDQNVDJDLQVWVDOHVWD[FRPPLWPHQWVDQGDUHUHVWULFWHGIURPEHLQJH[FKDQJHGRUXVHGWRVHWWOHDOLDELOLW\ for more than 12 months from the respective balance sheet dates. ` in lakhs As at As at 31 March 2016 31 March 2015 16 Current investments Short-term investments Quoted equity shares (valued at lower of cost or market value) 6,98,298 (previous year 6,98,298) equity shares of ` 10 each in DEN Networks Limited 0.00 0.00 Aggregate amount of quoted investments 0.00 0.00 Market value of quoted current investments 606.47 841.09 110 Network18 Media & Investments Limited and other explanatory information fortheyearended31March2016 information and otherexplanatory 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV 9Cashandbankbalances 19 Trade receivables 18 Inventories 17 Total Balance withbanktowardsdepositswhichremainunclaimed redeemablepreferencesharesaccount Unpaid non-cumulativeconvertible Unpaid rightissuemoney debentureaccounts convertible Unpaid zerocouponpartly Unpaid dividendaccounts Other bankbalances Cash onhand indepositaccounts Cheques onhand accounts incurrent Balance withbanks Total Unsecured, consideredgood Secured, consideredgood Other receivables Less: Provision fordoubtfulreceivables Unsecured, considereddoubtful Unsecured, consideredgood Secured, consideredgood Total Less :Provision forobsoleteinventory Raw materialsandcomponents Cash andcashequivalents Outstanding foraperiodexceedingsixmonthsfromtheduedate 31 March2016 31 March2016 31 March2016 (,5.2 (1,753.92) (1,051.22) 2750 2,054.49 2,735.09 1879 1,793.58 1,753.92 1,867.93 1,051.22 383 314.05 348.35 295 5.14 289.51 678 319.19 637.86 227 - 282.72 - 192.70 847 198.04 814.73 7.8 63.39 70.48 8.1 - 82.31 13.14 46.92 90.89 70.48 7.1 313.85 73.21 As at As at As at 67 - 0.20 6.79 0.13 55 49.73 5.51 Annual Report 2015-16 Annual Report - 0.70 3.08 1.36 - - - - (27.50) - 31 March2015 31 March2015 31 March2015 STANDALONE ` ` ` inlakhs inlakhs inlakhs As at As at As at 111 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 ` in lakhs As at As at 31 March 2016 31 March 2015 20 Short-term loans and advances (unsecured, considered good unless otherwise stated) Security deposits 38.70 387.31 Loans and advances to related parties 252.19 344.34 Advances recoverable in cash or in kind 273.03 286.81 Loans and advances to staff 20.32 49.51 584.24 1,067.97 Other loans and advances 6HUYLFHWD[LQSXWFUHGLW 294.94 383.09 3UHSDLGH[SHQVHV 312.13 260.74 Others 5.34 - 612.41 643.83 Total 1,196.65 1,711.80 ` in lakhs As at As at 31 March 2016 31 March 2015 21 Other current assets Unbilled revenue 470.61 677.74 Interest accrued but not due on advances 16.56 16.01 Total 487.17 693.75 ` in lakhs Year ended Year ended 31 March 2016 31 March 2015 22 Revenue from operations Sale of services Advertising and sponsorship revenue 5,079.42 4,623.36 Mobile short messaging and other related services 1,278.89 1,740.66 6DOHRIVWDOOVDWH[KLELWLRQV - 516.40 6DOHRISURGXFWV ÀQLVKHGJRRGV Sale of magazines 274.08 344.90 Other operating revenue 97.54 206.75 Total 6,729.93 7,432.07 112 Network18 Media & Investments Limited and other explanatory information fortheyearended31March2016 information and otherexplanatory 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV 6Finance costs 26 25 Costofmaterialsconsumed 24 Otherincome 23 Total 6WDIIZHOIDUHH[SHQVHV Gratuity andcompensatedabsences Contribution toprovidentfundandemployees’stateinsurance Salaries, wagesandbonus Sheet paperandreel 'HWDLOVRIFORVLQJVWRFNRIUDZPDWHULDODQGFRPSRQHQWV Sheet paperandreel 'HWDLOVRISXUFKDVHRIUDZPDWHULDODQGFRPSRQHQWV Sheet paperandreel 'HWDLOVRIUDZPDWHULDODQGFRPSRQHQWVFRQVXPHG Total Raw material Less :Closingstock Add :Purchasesduringtheyear Raw material Total Miscellaneous income 5HYHUVDORIHPSOR\HHVWRFNFRPSHQVDWLRQH[SHQVHV ([FHVVSURYLVLRQVXQGU\EDODQFHVZULWWHQEDFN Loansandadvances 3URÀWRQVDOHRIFXUUHQWLQYHVWPHQWV Long-term Bank investments deposits Total 2WKHUÀQDQFLDOFKDUJHV ,QWHUHVWH[SHQVH (PSOR\HHEHQHÀWVH[SHQVH Opening stock Interest incomeon 31 March2016 31 March2016 31 March2016 31 March2016 Year ended Year ended Year ended Year ended 4332 3,399.40 4,313.23 5233 5,752.52 5,283.34 3581 2,822.11 3,518.15 5264 5,477.17 5,236.49 103 244.51 205.85 180.32 200.73 207 205.85 200.73 1,238.55 900.99 212 296.74 271.21 250 216.66 205.07 244.51 205.85 180.32 200.73 29.32 318.07 400 273.16 490.07 244.51 180.32 372.44 304.09 258.55 322.08 7.8 90.89 70.48 9.4 87.47 99.94 90.89 70.48 90.89 52.23 70.48 90.89 4.5 275.35 46.85 22 341.06 2.29 Annual Report 2015-16 Annual Report - 126.29 28.66 - - - 36.69 - 31 March2015 31 March2015 31 March2015 31 March2015 STANDALONE Year ended Year ended Year ended Year ended ` ` ` ` inlakhs inlakhs inlakhs inlakhs 113 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 ` in lakhs Year ended Year ended 31 March 2016 31 March 2015 27 Depreciation and amortisation expense Depreciation of tangible assets 327.18 263.53 Amortisation of intangible assets 256.29 181.95 Total 583.47 445.48 ` in lakhs Year ended Year ended 31 March 2016 31 March 2015 28 Other operating expenses Consumption of stores and spares 2.99 8.36 Power and fuel 107.11 148.38 Distribution, advertising and business promotion 1,159.96 712.61 Rent 773.83 699.33 Repairs and maintenance - Plant and equipment 53.45 91.69 Repairs and maintenance - Buildings 17.81 27.74 Repairs and maintenance - Others 92.08 115.90 Insurance 55.55 32.26 5DWHVDQGWD[HV 84.21 210.07 /HJDODQGSURIHVVLRQDOH[SHQVHV 515.71 389.21 Director’s sitting fee 53.00 32.80 Site support cost 670.00 734.42 Bad debts /advances written off /provided for 304.07 110.23 Studio and equipment hire charges 20.32 12.51 (YHQWH[SHQVHV 56.32 417.05 &RQWHQWDQGIUDQFKLVHH[SHQVHV 453.08 386.65 Media professional fee 171.33 215.63 License fees - 2.10 Travelling and conveyance 620.54 378.01 Communication costs 142.02 141.48 Printing and stationery 19.39 19.45 Vehicle running and maintenance 210.03 109.33 Membership and subscription 38.49 10.07 Payment to auditor (Refer details below) 92.68 90.17 Printing cost 126.15 196.85 ([FKDQJHGLIIHUHQFH QHW - 12.42 /RVVRQGLVSRVDORIÀ[HGDVVHW 34.89 2.14 0LVFHOODQHRXVH[SHQVHV 471.24 342.98 Total 6,346.25 5,649.84 Payments to auditor* - as auditor 35.95 43.74 - other services 35.81 38.06 IRUUHLPEXUVHPHQWRIH[SHQVHV 20.92 8.37 92.68 90.17 ([FOXGLQJVHUYLFHWD[ 114 Network18 Media & Investments Limited D/LVWRIUHODWHGSDUWLHVZKHUHFRQWUROH[LVWVDQGUHODWHGS D are givenbelow AsperAccountingStandard18,thedisclosuresoftransactionswithrelatedparties disclosures party Related 31 pershare pershareissameasbasicearnings *Since thepotentialequitysharesareanti-dilutive,dilutedearnings fortheyearended31March2016 information and otherexplanatory 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV 0Earningspershare 30 Exceptionalitems 29 IndependentMediaTrust (w.e.f. 07July2014) 1 Party Name ofRelated Sr. No. Earnings pershare(basicanddiluted) Nominal valueofequityshare Weighted pershare averagenumberofequitysharesincalculatingbasic/dilutedearnings /RVVDIWHUWD[DWWULEXWDEOHWRHTXLW\VKDUHKROGHUV Total Provision fordiminutioninthevalueofinvestmentssubsidiaries Balances writtenoff 2EVROHVFHQFHLPSDLUPHQWLQYDOXHRIÀ[HGDVVHWV 7HUPLQDWLRQEHQHÀWVDQGUHODWHGFRQVXOWDQF\FKDUJHV 0Reliance IndustriesLimited(RIL)(w.e.f. 07July2014) Shinano Retail Private Limited(w.e.f. 07July2014) RBHoldingsPrivate Limited(w.e.f. 07July2014)# 10 Private Limited(w.e.f. RRBMediasoft 07July2014)# 9 Private Limited(w.e.f. RBMediasoft 07July2014)# 8 RBMediaHoldingsPrivate Limited(w.e.f. 07July2014)# 7 MediaPrivate Limited(w.e.f. Colorful 07July2014)# 6 Watermark InfratechPrivate Limited(w.e.f. 07July2014)# 5 MarketingPrivate Adventure Limited(w.e.f. 07July2014)# 4 3 2 2Television EighteenMauritiusLimited Reliance IndustrialInvestmentsandHoldingsLimited(w.e.f. 07July2014) 12 11 3Colosceum MediaPrivate Limited Greycells18 MediaLimited 23 RVT FinholdPrivate Limited 22 RRKFinhold Private Limited 21 Infomedia Press Limited 20 TV18Broadcast Limited 19 Setpro18 DistributionLimited 18 RRBInvestments Private Limited 17 Digital18 MediaLimited 16 Network18 HoldingsLimited(Mauritius) 15 Capital18FincapPrivate Limited 14 13 DUWLHVZLWKZKRPWUDQVDFWLRQVKDYHWDNHQSODFHDQGUHODWLRQVKLS %HQHÀFLDU\3URWHFWRURI,QGHSHQGHQW0HGLD7UXVW 10,94,6 1,04,67,83,633 1,04,69,42,766 31 March2016 31 March2016 (QWHUSULVHVH[HUFLVLQJFRQWURO Year ended Year ended (,9.0 (68,755.17) (9,096.10) (.7 (6.57) (0.87) 50 5.00 5.00 Relationship Subsidiaries Annual Report 2015-16 Annual Report - 20,810.95 39,886.77 512.98 762.00 - - - - - 61,972.70 - 31 March2015 31 March2015 STANDALONE Year ended Year ended ` ` inlakhs inlakhs V 115 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 Sr. No. Name of Related Party Relationship 24 E-18 Limited, Cyprus 25 Web18 Software Services Limited 26 e-Eighteen.com Limited 27 AETN18 Media Private Limited 28 RVT Media Private Limited Subsidiaries 29 TV18 Home Shopping Network Limited 30 Big Tree Entertainment Private Limited 31 Panorama TV Private Limited 32 Prism TV Private Limited 33 Viacom18 Media Private Limited 34 IBN Lokmat News Private Limited 35 Indiacast Distribution Private Limited (Formerly known as IndiaCast UTV Media Distribution Joint ventures Private Limited) 36 Indiacast UK Limited 37 Indiacast US Limited 38 24 X 7 Learning Private Limited Associate 39 A P Parigi (up to 30 September 2015) Key Managerial Personnel 40 Reliance Retail Limited (w.e.f. 07 July 2014)* Fellow subsidiary &RQWUROOHGE\,QGHSHQGHQW0HGLD7UXVWRIZKLFK5,/LVWKHVROHEHQHÀFLDU\ 6XEVLGLDU\RI5,/WKHVROHEHQHÀFLDU\RI,QGHSHQGHQW0HGLD7UXVW (b) Related party transactions and balances ` in lakhs Particulars 6XEVLGLDULHV Associates Joint ventures Entities over .H\ )HOORZ ZKLFK.H\ Management subsidiary Managerial Personnel Personnel are able to exercise VLJQLÀFDQW LQÁXHQFH Transactions during the year Income from operations TV18 Broadcast Limited 36.65 - - - - (6.88) ( - ) ( - ) ( - ) ( - ) e-Eighteen.com Limited 8.77 - - - - (8.83) ( - ) ( - ) ( - ) ( - ) Viacom18 Media Private Limited - - 51.33 - - ( - ) ( - ) (154.60) ( - ) ( - ) Digital18 Media Limited 0.25 - - - - ( - ) ( - ) ( - ) ( - ) ( - ) AETN18 Media Private Limited - - - - - (1.00) ( - ) ( - ) ( - ) ( - ) Indiacast Distribution Private Limited (Formerly known as - - - - - IndiaCast UTV Media Distribution Private Limited) ( - ) ( - ) (4.52) ( - ) ( - ) Indiacast US Limited - - - - - ( - ) ( - ) (75.58) ( - ) ( - ) Indiacast UK Limited - - - - - ( - ) ( - ) (1.98) ( - ) ( - ) 116 Network18 Media & Investments Limited and other explanatory information fortheyearended31March2016 information and otherexplanatory 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV V8BodatLmtd 23 - - - - 22.32 TV18 BroadcastLimited received Expenditure forservices Particulars -ihencmLmtd - - - - - e-Eighteen.com Limited icm8MdaPiaeLmtd - - - - - Viacom18 MediaPrivate Limited iia1 ei iie 05 - - - - 0.58 Digital18 MediaLimited EN8MdaPiaeLmtd ------AETN18 MediaPrivate Limited e1 otaeSrie iie 15 - - - - 11.52 Limited Services Web18 Software eineRti iie ------Reliance Retail Limited noei rs iie 230 - - - - 283.08 Infomedia Press Limited Interest income aia1 icpPiaeLmtd .6 ------0.76 Capital18 FincapPrivate Limited V8BodatLmtd ,4.1 ------1,647.21 TV18 BroadcastLimited Interest expense -ihencmLmtd 4.4 ------243.34 e-Eighteen.com Limited V8Hm hpigNtokLmtd 1.8 ------10.58 TV18 HomeShoppingNetworkLimited ofexpenses(paid) Reimbursement V8BodatLmtd 346 - - - - 384.67 TV18 BroadcastLimited -ihencmLmtd 7.3 ------876.93 e-Eighteen.com Limited icm8MdaPiaeLmtd - - - - - Viacom18 MediaPrivate Limited ryel1 ei iie .0 ------4.80 Greycells18 MediaLimited 4X7Lann rvt iie - 83 - - - 8.38 - Private Limited 24 X7Learning V8BodatLmtd 920 - - - - 942.08 TV18 BroadcastLimited ofexpenses(received) Reimbursement -ihencmLmtd 9.8 ------597.78 e-Eighteen.com Limited icm8MdaPiaeLmtd .7 - - - 2.97 - - Viacom18 MediaPrivate Limited iia1 ei iie 5.3 ------54.13 Digital18 MediaLimited 6XEVLGLDULHV (,8.1 (-) (-) (-) (-) (-) (-) (-) (1,388.91) subsidiary subsidiary (0.5 (-) (-) (-) (-) (-) (-) (-) (303.45) (8.5 (-) (-) (-) (-) (-) (-) (-) (181.75) (2.6 (-) (-) (-) (-) (-) (-) (-) (221.16) (6.5 (-) (-) (-) (-) (-) (-) (-) (664.35) (5.2 (-) (-) (-) (-) (-) (-) (-) (655.22) (6.2 (-) (-) (-) (-) (-) (-) (-) (163.22) (23) (-) (-) (-) (-) (12.39) (70) (-) (-) (-) (-) (87.02) (.4 (-) (-) (-) (-) (-) (-) (-) (6.64) (.4 (-) (-) (-) (-) (-) (-) (-) (3.24) (.1 (-) (-) (-) (-) (-) (-) (-) (1.11) (.7 (-) (-) (-) (-) (-) (-) (-) (5.37) (.9 (-) (-) (-) (-) (-) (-) (-) (0.19) (.5 (-) (-) (-) (-) (-) (-) (-) (4.65) )HOORZ (-) (-) (.8 (-) (-) (-) (3.78) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (.9 (-) (-) (-) (0.29) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (.9 (-) (-) (-) (6.49) (-) (-) - (-) (-) (-) (-) (-) (-) (-) - Ascae on etrs Entitiesover Jointventures Associates able toexercise Personnel are Annual Report 2015-16 Annual Report Managerial VLJQLÀFDQW ZKLFK.H\ LQÁXHQFH STANDALONE Management ` Personnel inlakhs .H\ 117 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 ` in lakhs Particulars 6XEVLGLDULHV Associates Joint ventures Entities over .H\ )HOORZ ZKLFK.H\ Management subsidiary Managerial Personnel Personnel are able to exercise VLJQLÀFDQW LQÁXHQFH TV18 Home Shopping Network Limited 288.24 - - - - (336.99) ( - ) ( - ) ( - ) ( - ) Infomedia Press Limited 1.98 - - - - ( - ) ( - ) ( - ) ( - ) ( - ) Big Tree Entertainment Private Limited 26.89 - - - - (10.00) ( - ) ( - ) ( - ) ( - ) AETN18 Media Private Limited 24.21 - - - - (29.60) ( - ) ( - ) ( - ) ( - ) IBN Lokmat News Private Limited - - 33.29 - - ( - ) ( - ) (67.45) ( - ) ( - ) Colosceum Media Private Limited - - - - - (0.79) ( - ) ( - ) ( - ) ( - ) Greycells18 Media Limited 20.72 - - - - (77.98) ( - ) ( - ) ( - ) ( - ) Panorama TV Private Limited - - - - - (7.10) ( - ) ( - ) ( - ) ( - ) Prism TV Private Limited - - - - - (1.72) ( - ) ( - ) ( - ) ( - ) Web18 Software Services Limited - - - - - (0.45) ( - ) ( - ) ( - ) ( - ) Exceptional item (provision for doubtful advances) - - Television Eighteen Mauritius Limited - - - - - (499.78) ( - ) ( - ) ( - ) ( - ) Infomedia Press Limited - - - - - (467.76) ( - ) ( - ) ( - ) ( - ) /RDQVDGYDQFHVJLYHQGXULQJWKH\HDU Infomedia Press Limited 163.86 - - - - ( - ) ( - ) ( - ) ( - ) ( - ) Capital18 Fincap Private Limited - - - - - (115.00) ( - ) ( - ) ( - ) ( - ) /RDQVDGYDQFHVWDNHQGXULQJWKH\HDU TV18 Broadcast Limited 11,000.00 - - - - (14,000.00) ( - ) ( - ) ( - ) ( - ) e-Eighteen.com Limited 4,200.00 - - - - ( - ) ( - ) ( - ) ( - ) ( - ) Provision for doubtful advances Viacom18 Media Private Limited - - - - - (277.54) ( - ) ( - ) ( - ) ( - ) /RDQVDGYDQFHVUHFHLYHGEDFNJLYHQGXULQJWKH\HDU TV18 Broadcast Limited 5,000.00 - - - - ( - ) ( - ) ( - ) ( - ) ( - ) Investments purchase during the year Big Tree Entertainment Private Limited - - - - - (4,767.54) ( - ) ( - ) ( - ) ( - ) Infomedia Press Limited - - - - - (45.89) ( - ) ( - ) ( - ) ( - ) Digital18 Media Limited 105.00 - - - - (265.00) ( - ) ( - ) ( - ) ( - ) Capital18 Fincap Private Limited 210.00 - - - - (1,077.00) ( - ) ( - ) ( - ) ( - ) 118 Network18 Media & Investments Limited and other explanatory information fortheyearended31March2016 information and otherexplanatory 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV iia1 ei iie ------Digital18 MediaLimited Provision fordiminutioninvalueofinvestment Particulars iia1 ei iie Ivsmn nEut ------Digital18 MediaLimited-InvestmentinEquity R netet rvt iie (-) ------(-) RRB InvestmentsPrivate Limited aia1 icpPiaeLmtd ,5.0 ------2,450.00 Capital18 FincapPrivate Limited Investment indebenturesredeemed aia1 icpPiaeLmtd 0.0 ------300.00 Capital18 FincapPrivate Limited Debenture applicationmoneypaid V8Hm hpigNtokLmtd 8092 - - - - 8,069.22 TV18 HomeShoppingNetworkLimited Corporate guaranteegiven V8Bodatlmtd 8.0 ------986.00 TV18 Broadcastlimited V8BodatLmtd 351 - - - - 345.14 TV18 BroadcastLimited Amount duefrom icm8MdaPiaeLmtd 0.3 - - - 307.63 - - Viacom18 MediaPrivate Limited -ihencmLmtd 9.8 ------692.48 e-Eighteen.com Limited i reEtranetPiaeLmtd 30 - - - - 63.02 PrivateBig Tree Limited Entertainment iia1 ei iie 4.8 ------48.38 Digital18 MediaLimited V8Hm hpigNtokLmtd 6.9 ------61.89 TV18 HomeShoppingNetworkLimited noei rs iie 2898 - - - - 2,829.86 Infomedia Press Limited EN8MdaPiaeLmtd 20 - - - - 2.01 AETN18 MediaPrivate Limited B omtNw rvt iie - - 10 - - 1.04 - - IBN LokmatNewsPrivate Limited ryel1 ei iie 09 - - - - 10.96 Greycells18 MediaLimited eeiinEgte artu iie 497 - - - - 499.78 Television Eighteen MauritiusLimited e1 otaeSrie iie 24 - - - - 32.48 Limited Services Web18 Software aoaaT rvt iie ------Panorama TVPrivate Limited rs VPiaeLmtd - - - - - Prism TVPrivate Limited 6XEVLGLDULHV (,2.0 (-) (-) (-) (-) (-) (-) (-) (4,325.00) (,0.0 (-) (-) (-) (-) (-) (-) (-) (2,604.00) (,4.0 (-) (-) (-) (-) (-) (-) (-) (2,740.00) (,1.6 (-) (-) (-) (-) (-) (-) (-) (3,113.86) subsidiary subsidiary (9.8 (-) (-) (-) (-) (-) (-) (-) (499.78) (57) (-) (-) (-) (-) (85.71) (16) (-) (-) (-) (-) (11.63) (22) (-) (-) (-) (-) (42.28) (60) (-) (-) (-) (-) (76.03) (00) (-) (-) (-) (-) (30.06) (.0 (-) (-) (-) (-) (-) (-) (-) (5.00) (.1 (-) (-) (-) (-) (-) (-) (-) (2.91) (.3 (-) (-) (-) (-) (-) (-) (-) (1.93) )HOORZ (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (2.1 (-) (-) (-) (326.31) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (.0 (-) (-) (-) (7.50) (-) (-) Ascae on etrs Entitiesover Jointventures Associates able toexercise Personnel are Annual Report 2015-16 Annual Report Managerial VLJQLÀFDQW ZKLFK.H\ LQÁXHQFH STANDALONE Management ` Personnel inlakhs .H\ 119 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 ` in lakhs Particulars 6XEVLGLDULHV Associates Joint ventures Entities over .H\ )HOORZ ZKLFK.H\ Management subsidiary Managerial Personnel Personnel are able to exercise VLJQLÀFDQW LQÁXHQFH RRB Investments Private Limited 0.38 - - - - (0.19) ( - ) ( - ) ( - ) ( - ) RRK Finhold Private Limited ( - ) - - - - (0.59) ( - ) ( - ) ( - ) ( - ) RVT Finhold Private Limited 0.21 - - - - - ( - ) ( - ) ( - ) ( - ) RVT Media Private Limited 0.51 - - - - (0.16) ( - ) ( - ) ( - ) ( - ) Capital18 Fincap Private Limited 300.00 - - - - (115.19) ( - ) ( - ) ( - ) ( - ) Setpro18 Distribution Limited - - - - - (0.09) ( - ) ( - ) ( - ) ( - ) Amount due to Viacom18 Media Private Limited - - 26.65 - - ( - ) ( - ) ( - ) ( - ) ( - ) e-Eighteen.com Limited 4,896.80 - - - - (159.38) ( - ) ( - ) ( - ) ( - ) TV18 Broadcast Limited 21,938.20 - - - - (14,078.32) ( - ) ( - ) ( - ) ( - ) Big Tree Entertainment Private Limited 49.03 - - - - (10.32) ( - ) ( - ) ( - ) ( - ) E-18 Limited, Cyprus 3.29 - - - - (3.29) ( - ) ( - ) ( - ) ( - ) Network18 Holdings Limited 21,719.94 - - - - (21,719.94) ( - ) ( - ) ( - ) ( - ) Web18 Software Services Limited 0.47 - - - - ( - ) ( - ) ( - ) ( - ) ( - ) Digital18 Media Limited 0.88 - - - - ( - ) ( - ) ( - ) ( - ) ( - ) Greycells18 Media Limited 0.03 - - - - ( - ) ( - ) ( - ) ( - ) ( - ) Infomedia Press Limited 92.11 - - - - ( - ) ( - ) ( - ) ( - ) ( - ) AETN18 Media Private Limited - - - - - (0.25) ( - ) ( - ) ( - ) ( - ) Corporate guarantee given TV18 Home Shopping Network Limited 15,902.28 - - - - (7,833.06) ( - ) ( - ) ( - ) ( - ) TV18 Broadcast Limited - - - - - (986.00) ( - ) ( - ) ( - ) ( - ) ÀJXUHVLQEUDFNHWVUHSUHVHQWVÀJXUHVIRUSUHYLRXV\HDU Note: 1RWH D DQG E UHODWHGSDUW\QRWH DOVRVXIÀFHWKHUHTXLUHPHQWVRIVFKHGXOH9RI6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD /LVWLQJ2EOLJDWLRQVDQG'LVFORVXUH5HTXLUHPHQWV Regulations, 2015. 120 Network18 Media & Investments Limited (PSOR\HHEHQHÀWV fortheyearended31March2016 information and otherexplanatory 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV 7KHSUHVHQWYDOXHRIGHÀQHGEHQHÀWREOLJDWLRQVDQGH[SHULHQFH 1RWH²)RUWKH\HDUHQGHG0DUFKRXWRIWKHWRWDOQHW item and DQQXDOSHULRGVLVDVEHORZ Particulars Particulars Net liabilityamountrecognisedinthebalancesheet Particulars &KDQJHVLQWKHSUHVHQWYDOXHRIWKHGHÀQHGEHQHÀWREOLJDWLRQDU Particulars 1HWHPSOR\HHEHQHÀWVH[SHQVH 3UHVHQWYDOXHRIGHÀQHGEHQHÀWREOLJDWLRQ Non-current liability Non-current Present valueofobligationsasatthebeginningyear cost service Current ([SHULHQFHDGMXVWPHQWRQSODQOLDELOLWLHV ORVV JDLQ Actuarial gain/(loss) Current liability Current cost service Current Interest cost Total NetLiability Interest cost 1HWEHQHÀWVH[SHQVH Net actuarial(gain)/lossrecognisedintheyear Acquisition adjustment %HQHÀWSDLG Present valueofobligationsasattheendyear Net actuarial(gain)/lossrecognisedintheyear ` ODNKVZDVSDUWRIHPSOR\HHEHQHÀWVH[SHQVH EHQHÀWVH[SHQVHRQDFFRXQWRIJUDWXLW\DQGFRPSHQVDWHGDEVHQFH 31 March2012 3.9 6.0 00 115)(20.13) (121.53) 60.08 (64.80) (30.09) 2.0375 2.8273 193.36 207.35 220.98 387.56 427.60 DGMXVWPHQWVDULVLQJRQSODQOLDELOLWLHVLQFXUUHQWDQGSUHYLRX 00 48 6.8 2.320.13 121.53 (60.08) 64.80 30.09 HDVIROORZV As at 31 March2013 Year ended31March2016 Year ended31March2016 Year ended31March2016 Gratuity Gratuity Gratuity 2.3 10 2.3(4.35) 121.53 11.06 (20.13) 5.7 6.8 121)(67.36) (182.17) (66.98) (51.17) 2.3 10 2.3(4.35) 121.53 11.06 (20.13) 9.6152 0.5109.49 207.35 105.27 193.36 9.6152 0.5109.49 207.35 105.27 193.36 8.1124 0.2104.83 202.42 102.46 189.01 138.48 220.98 109.49 207.35 71 27 8.446.82 181.14 62.76 37.18 07 29 15 40.49 41.59 42.94 40.72 07 29 15 40.49 41.59 42.94 40.72 10.68 18.02 8.76 16.59 65 .61.210.68 18.02 8.76 16.59 As at .528 49 4.66 4.93 2.81 4.35 1.0 (8.45) (12.60) - - 31 March2014 Compensated Compensated Compensated absences absences absences V As at ` ODNKVZDVFODVVLÀHGDVDQH[FHSWLRQDO 31 March2015 Year ended31March2015 Year ended31March2015 Year ended31March2015 Annual Report 2015-16 Annual Report Gratuity Gratuity Gratuity As at 31 March2016 STANDALONE Compensated Compensated Compensated ` ` ` VIRXU absences absences absences ` inlakhs inlakhs inlakhs inlakhs As at 121 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 7KHSULQFLSDODVVXPSWLRQVXVHGLQGHWHUPLQLQJOLDELOLW\WRZDUGVJUDWXLW\DQGFRPSHQVDWHGDEVHQFHVDUHVKRZQEHORZ a) Economic Assumption ` in lakhs Year ended 31 March 2016 Year ended 31 March 2015 Particulars Compensated Compensated Gratuity (in %) Gratuity (in %) absences (in %) absences (in %) Discount rate 8.00 8.00 8.00 8.00 ([SHFWHGVDODU\HVFDODWLRQUDWH 5.50 5.50 5.50 5.50 b) Demographic assumption ` in lakhs Particulars Year ended 31 March 2016 Year ended 31 March 2015 Retirement Age (Years) 60 60 Mortality table IALM (2006-08) IALM (2006-08) Withdrawal rate Age Percentage Age Percentage Up to 30 years 3 Up to 30 years 3 Up to 44 years 2 Up to 44 years 2 Above 44 years 1 Above 44 years 1 (VWLPDWHVRIIXWXUH VDODU\LQFUHDVHV FRQVLGHUHG LQ DFWXDULDOYDOXDWLRQ WDNHDFFRXQW RILQÁDWLRQ VHQLRULW\SURPRWLRQ DQG RWKHU UHOHYDQW factors, such as supply and demand in the employment market. 'HÀQHGFRQWULEXWLRQSODQ The Company has contributed ` 205.07 lakhs (previous year ` 216.66 lakhs) to Contribution to provident fund and employees’ state insurance. 2WKHUORQJWHUPHPSOR\HHEHQHÀWV The Company, along with its subsidiary company, TV18 Broadcast Limited, has jointly established an Employee Welfare Plan dated )HEUXDU\ IRUWKHEHQHÀWRIWKHLUH[LVWLQJDQGIXWXUHHPSOR\HHVDQGWRDGPLQLVWHUWKHVDPHD7UXVWQDPHG1HWZRUN*URXS6HQLRU Professional Welfare Trust has been constituted under the Indian Trusts Act, 1881 vide Trust Deed dated 19 February 2009. 7KH(PSOR\HH:HOIDUH3ODQSURYLGHVWKDWDQ\DFFUHWLRQWRWKHFRUSXVRIWKH7UXVW OLNHGLYLGHQGVSURÀWRQVDOHRILQYHVWPHQWVLQWHUHVW LQFRPHHWF ZLOOEHXWLOLVHGIRUWKHEHQHÀWRIEHQHÀFLDULHVXSRQRFFXUUHQFHRIFHUWDLQVSHFLÀFHYHQWV,WIXUWKHUSURYLGHVWKDWWKHDPRXQWRI EHQHÀWWREHSURYLGHGRXWRIVXFKDFFUHWLRQZLOOEHDWWKHGLVFUHWLRQRIWKHWUXVWHHV During the year ended 31 March 2016 and 31 March 2015, there were no net accretions to the corpus of the aforementioned Trust and DFFRUGLQJO\QROLDELOLW\RUSODQDVVHWVKDYHEHHQSURYLGHGUHFRJQLVHGLQWKHVHÀQDQFLDOVWDWHPHQWV 122 Network18 Media & Investments Limited Based onthelegaladvicebycounsel,managementisofviewthataboveclaimmade bytheplaintiffsisunli Demand for stamp duty on transfer of property - Demandforstampdutyontransferofproperty &ODLPVDJDLQVWWKH&RPSDQ\QRWDFNQRZOHGJHGDVGHEWV Contingentpaymentsunderagreementsforsale ofsubsidiaries- 9LFWRU)HUQDQGHVDQGRWKHUV ¶SODLQWLIIV· KDGÀOHGDGHULYDW Other litigations 7KH&RPSDQ\KDVLVVXHGOHWWHUVRIÀQDQFLDOVXSSRUWWRFHUWDLQ 7KH&RPSDQ\KDVWDNHQYDULRXVRIÀFHSUHPLVHVXQGHURSHUDWLQJ Obligationonlongterm,non-cancellableoperatingleases 33. fortheyearended31March2016 information and otherexplanatory 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV 4 Contingentliabilitiesandothercommitments 34. DQGKDVDFFRUGLQJO\PDGHQRSURYLVLRQVIRUWKHVDPHLQWKHÀQDQ the rightsissue. againstanorderofSecuritiesAppellateTribunal regardinggrantoflistingapprova an appealbeforetheHon’bleSupremeCourt Limited. Theplaintiffshavevaluedtheirclaiminthesuitat bytheNetwork18Groupshouldberoutedthrough e-Eight undertaken TV18 groupentitiesallegingthatallbusinessopportunities Software Services LimitedandInfomediaPress Limited. Services Software and Lossamountto OHDVHDJUHHPHQWVZLWKHVFDODWLRQFODXVHVGXULQJWKHLQLWLDOOHD Therear years andtheyarerenewablebymutualconsent.Therenosubleasesorrestrictionsimposedleasearrangements. Total TV18 HomeShoppingNetworkLimited TV18 BroadcastLimited(Formerly IBN18BroadcastLimited) ofsubsidiaries: Corporate guaranteesgiveninconnectionwithborrowings Capital commitments Particulars Particulars Total 3D\DEOHODWHUWKDQÀYH\HDUV 3D\DEOHODWHUWKDQRQH\HDUEXWQRWODWHUWKDQÀYH\HDUV Payable notlaterthanoneyear ` 773.83 lakhs(previousyear ` 3,463.96 lakhs(previousyear ` 699.33 lakhs). LYHDFWLRQVXLWEHIRUHWKH%RPED\+LJK&RXUWDJDLQVW5DJKDY%DK ` ODNKV7KHVXLWLVFXUUHQWO\SHQGLQJ9LFWRU)HUQDQ VHWHUP/HDVHSD\PHQWVGXULQJWKHSHULRGUHFRJQLVHGLQWKH6WD VXEVLGLDU\FRPSDQLHV²79+RPH6KRSSLQJ1HWZRUN/LPLWHG:HE ` FLDOVWDWHPHQWV OHDVHDJUHHPHQWV7KHOHDVHWHUPRIWKHVHOHDVHVUDQJHVEHWZHHQ 169.93 lakhs(previousyear ` 86.77 lakhs). ` 169.93 lakhs). 31 March2016 31 March2016 5966 9,004.47 15,946.68 5922 7,833.06 15,902.28 8.1171.97 185.81 6.5151.75 161.55 44 185.41 44.40 42 20.22 24.26 As at As at Annual Report 2015-16 Annual Report 986.00 - -- GHVKDVDOVRÀOHG O79DQGRWKHU kely tosucceed WHPHQWRI3URÀW 31 March2015 31 March2015 STANDALONE l byNSEfor ` ` inlakhs inlakhs e certain e certain een.com WR As at As at 123 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 ` in lakhs As at As at Particulars 31 March 2016 31 March 2015 35. Value of imported and indigenous material consumed Paper, inks, printing and binding materials : Raw materials and components Imported - Amount 188.28 189.42 - Percentage 94% 92% Indigenous - Amount 12.45 16.43 - Percentage 6% 8% Total 200.73 205.85 Analysis of material consumed Paper sheets 16.27 30.67 Paper reels 184.46 175.18 Total 200.73 205.85 31 March 2016 31 March 2015 31 March 2016 31 March 2015 Particulars (amount of foreign (amount of foreign (` in lakhs) (` in lakhs) currency) currency) 36. Unhedged foreign currency exposure as at the reporting date as at 31 March 2016 Import trade payable Trade payable US$ 38,394.47 25.46 74,441 46.59 Trade payable GBP - - 1,402 1.30 Trade payable S$ - - 150 0.07 Export trade receivable Trade receivable US$ 500,395 331.91 281,361 176.10 Trade receivable GBP 1,764 1.67 2,618 2.42 Rate of US$- ` 66.33 (previous year ` 62.33) Rate of GBP- ` 95.09 (previous year ` 92.55) Rate of S$ - ` 49.14 (previous year ` 45.43) ` in lakhs As at As at Particulars 31 March 2016 31 March 2015 37. Expenditure in foreign currency (accrual basis) &RQWHQWDQGIUDQFKLVHH[SHQVHV 67.24 100.58 Distribution, advertising and business promotion 23.76 9.47 Communication costs - 3.68 Membership and subscription - 0.26 License fees - 0.15 /HJDODQGSURIHVVLRQDOH[SHQVHV 4.57 - Site support cost 86.88 - Repairs and maintenance- Plant and equipment 14.95 - Repairs and maintenance- Others 32.96 - 0LVFHOODQHRXVH[SHQVHV 9.55 - Total 239.91 114.14 124 Network18 Media & Investments Limited 7KH&RPSDQ\·V(PSOR\HH6WRFN2SWLRQ3ODQV (623V IUDPHGLQ D EmployeeStockOptionPlans 39. fortheyearended31March2016 information and otherexplanatory 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV . Salienttermsofthe ESOPschemesoftheCompany, inforce,are: b. TheNetwork18 EmployeesStockOptionPlan2007(ESOP2007) iv) TheNetwork18LongTerm Retention EmployeesStockOptionPlan2005(LongTerm Retention ESOP2005) iii) TheNetwork18SeniorEmployeesStockOptionPlan2004(SeniorESOP2004) ii) TheNetwork18EmployeesStockOptionPlan2004(ESOP2004) i) 8 Earningsinforeigncurrency(accrualbasis) 38. Particulars RI'LUHFWRUVDQGWKH6KDUHKROGHUVDUHOLVWHGEHORZ6FKHPHVOLV Stock OptionSchemeandEmployeePurchaseScheme)Guidelines,1999(‘SEBIGuidelines’)whichhavebeenapprovedbytheBo ESOP schemesinTelevision oftheSchemeArrangement. EighteenIndiaLimited,interms ehdo eteetEut ete qiystldEut ete Equitysettled Equitysettled Equity settled Equity settled Method ofsettlement ([HUFLVHSHULRG Vesting requirements Vesting date After threeyearsfrom After Vesting date Number ofoptionsgranted atclr ESOP2004 Particulars Total Other operatingrevenue andsponsorshiprevenue Advertising vesting date. the During twoyearsafter may beprescribed. such otherconditionsas and Continuation ofservices (ii) 50% on11February (i) 50% on11February WHUPVKDYHEHHQPRGLÀHG 2,13,000 optionswhose as followsinrespectof WKHGDWHRIJUDQWH[FHSW 5,73,600 2011 2010 vesting date. the During twoyearsafter be prescribed. such otherconditionsasmay and Continuation ofservices (ii) 2011 50% on11February (i) 2010 50% on11February In respectof1,43,994 2. Remaining twothirdafter 1. twoyears One thirdafter vesting detailsareasfollows ([FHSWIRU RSWLRQV ,59630,0 39,62,736 3,00,000 5,75,976 ESOP 2004 Senior date. 4 yearsfromthegrant from thedateofgrant as follows: options, vestingdetailsare WHGDWVHULDO L WR LY ZHUHHVWDEOLVKHGDVPLUURUVFKHPHVRI DFFRUGDQFHZLWKWKH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD (P vesting date. the During oneyearafter be prescribed. such otherconditionsasmay and Continuation ofservices years fromthedateofgrant. At anytimeattheendof4 ESOP 2005 Long Term Retention 31 March2016 ,2.41,005.73 1,220.44 ,7.3931.89 1,176.23 42 73.84 44.21 As at Annual Report 2015-16 Annual Report may bedecidedbytheBoard H[SLU\SHULRGRIWKHRSWLRQDV GDWHDQGH[WHQGHGXSWRWKH commence fromthevesting ([HUFLVHSHULRGZLOO be prescribed. such otherconditionsasmay and Continuation ofservices by theBoard. tranches asmaybedecided shall happeninoneormore date ofgrant.Thevesting oneyearfromthe After ESOP 2007 WKHWKHQH[LVWLQJ 31 March2015 STANDALONE ` ` inlakhs inlakhs SOR\HH As at 125 ard FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 'HWDLOVRIPRGLÀFDWLRQLQ(623VFKHPHVLQSUHYLRXVÀQDQFLDO\HDU ESOP 2007 ([HUFLVHSULFHRIRSWLRQVZDVUHGXFHGIURP` 37.55 to ` DQGH[HUFLVHSHULRGZDV H[WHQGHGXSWR0DUFK ([HUFLVHSHULRGRIRSWLRQVZDVH[WHQGHGXSWR)HEUXDU\ ESOP 2004 and Senior ESOP 2004 ([HUFLVHSHULRGRIZDVH[WHQGHGXSWR)HEUXDU\ 'XULQJWKHSUHYLRXV\HDUWKH&RPSDQ\PRGLÀHGWKHWHUPVRIFHUWDLQVWRFNRSWLRQVE\UHGXFLQJWKHH[HUFLVHSULFHWREULQJWKHVDPHLQOLQH with the market price. 0RGLÀFDWLRQGDWH2FWREHU Particulars 3UHPRGLÀFDWLRQ 3RVWPRGLÀFDWLRQ Dividend yield 0.00% 0.00% ([SHFWHGYRODWLOLW\ 55.40% 55.40% Risk-free interest rate 8.33% 8.33% Weighted average share price (`) 31.90 31.90 :HLJKWHGDYHUDJHH[HUFLVHSULFH `) 34.88 29.91 ([SHFWHGOLIHRIRSWLRQVJUDQWHG LQ\HDUV 1.40 1.78 The volatility of the options is based on the historical volatility of the share price since the Company’s equity shares are publicly traded. F 'HWDLOVRIRSWLRQVDQGZHLJKWHGDYHUDJHSULFHV LONG TERM RETENTION ESOP 2004 SENIOR ESOP 2004 ESOP 2007 ESOP 2005 Particulars Weighted Weighted Weighted Weighted Options AverageOptions AverageOptions AverageOptions Average Price Price Price Price a) Outstanding at the ------1,01,300 31.90 beginning of the period -9,300 -20 -10,000 -13.34 -2,62,500 -37.55 -4,27,041 -28.20 b) Granted during the ------period (-) (-) (-) (-) (-) (-) (-) (-) F ([HUFLVHGGXULQJWKH ------1,00,000 31.90 period -3,600 -20 -10,000 -13.34 (-) (-) -1,68,384 -17.82 d) Forfeited during the ------period (-) (-) (-) (-) (-) (-) (-) (-) H ([SLUHGGXULQJWKH ------6508.90 period -5,700 -20 (-) (-) -2,62,500 -37.55 -1,57,358 -7.56 f) Outstanding at the end ------65028.90 of the period (-) (-) (-) (-) (-) (-) -1,01,300 31.90 J ([HUFLVDEOHDWWKHHQG ------of the period (-) (-) (-) (-) (-) (-) -1,01,300 -31.90 h) Weighted average share ------1,01,300 31.90 price at the date of -3,600 -20 -10,000 -13.34 (-) (-) -1,68,384 -17.82 H[HUFLVH i) Weighted average ------remaining contractual (-) (-) (-) (-) (-) (-) (-) (-) life (years) j) Unvested Option ------outstanding at the end (-) (-) (-) (-) (-) (-) (-) (-) of the period 126 Network18 Media & Investments Limited 31 March2016: The BlackScholesvaluationmodelhasbeenusedforcomputingtheweightedaveragefairvalueconsideringfollowinginputs WD[DQGORVVSHUVKDUHDVUHSRUWHGZRXOGKDYHFKDQJHGWRWKHDP employeestockcompensation,its Had theCompanyusedfairvaluemethodinaccordancewithBlackScholesModeltodetermine cost oftheoptionsgranted. AccountantsofIndiaformeas Guidance NoteonAccountingforEmployeeShareBasedPayment issuedbytheInstituteofChartered 7KH&RPSDQ\KDVDGRSWHGWKHLQWULQVLFYDOXHPHWKRGDVSURPRWHG fortheyearended31March2016 information and otherexplanatory 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV :HLJKWHGDYHUDJHH[HUFLVHSULFH Risk-free interestrate ([SHFWHGYRODWLOLW\ Dividend yield Proforma As reported Diluted Proforma As reported Basic Loss perShare ( Loss aftertaxasreported Particulars 3URIRUPDORVVDIWHUWD[ Less: ESOPcostusingthefairvaluemethod Add: ESOPcostusingtheintrinsicvaluemethod ([SHFWHGOLIHRIRSWLRQVJUDQWHG LQ\HDUV Weighted averageshareprice( ` ) ` ) ` ) RXQWVLQGLFDWHGEHORZ E\WKH6(%, 6KDUH%DVHG(PSOR\HH%HQHÀWV 5HJXODWLRQVDQ 31 March2016 9061)(68,781.24) (9,096.10) 9061)(68,755.17) (9,096.10) 08)(6.59) (6.57) (6.59) (6.57) (0.87) (0.87) (0.87) (0.87) As at Annual Report 2015-16 Annual Report (10.62) (36.69) - - 31 March2015 STANDALONE in theyear ` loss after lossafter uring the inlakhs 109.35% 66.93% 113.44 5.19% 0.00% As at GWKH 1.32 127 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 40. Dues to Micro and Small enterprises Dues to small and micro enterprises pursuant to section 22 of the Micro, Small and Medium Enterprises Development (“MSMED”) Act 2006# ` in lakhs Particulars 31 March 2016 31 March 2015 Principal amount remaining unpaid - - Interest due thereon - - Interest paid by the Company in terms of Section 16 of MSMED Act, 2006, along with the amount of the -- payment made to the suppliers and service providers beyond the appointed day during the year Interest due and payable for the period of delay in making payment (which has been paid but beyond the - - DSSRLQWHGGD\GXULQJWKH\HDU EXWZLWKRXWDGGLQJWKHLQWHUHVWVSHFLÀHGXQGHU060('$FW Interest accrued and remaining unpaid - - Further interest remaining due and payable even in the succeeding years, until such date when the -- interest dues as above are actually paid to the small enterprise for the purpose of disallowance as a GHGXFWLEOHH[SHQGLWXUHXQGHUVHFWLRQRIWKH060('$FW # The details of amounts outstanding to micro and small enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 are as per available information with the Company. ,QIRUPDWLRQSXUVXDQWWRUHJXODWLRQ UHDGZLWK6FKHGXOH9RIWKH6(%, /LVWLQJ2EOLJDWLRQVDQG'LVFORVXUH5HTXLUHPHQWV Regulations, 2015: ` in lakhs Balance (including interest Maximum balance during Loans and advances in the nature of loans to subsidiaries accrued) as on the year ended Name of the entity Status 31 March 2016 31 March 2015 31 March 2016 31 March 2015 Infomedia Press Limited Subsidiary 2,998.34 2,571.69 2,998.34 2,571.69 (formerly known as Infomedia 18 Limited) 7KHUHDUHQRWUDQVDFWLRQVRIORDQVDQGDGYDQFHVWRVXEVLGLDULHVDVVRFLDWHÀUPVFRPSDQLHVLQZKLFKGLUHFWRUVDUHLQWHUHVWHGRWKHUWKDQDV disclosed above. The above loans and advances have been given for business purposes/ corporate general purposes. The aforesaid loanee company has not made any investment in the shares of the Company. 42. Barter transactions The Company enters into barter transactions, which are recorded at the fair value of consideration receivable or payable. The statement of SURÀWDQGORVVIRUWKH\HDU0DUFKUHÁHFWVUHYHQXHIURPEDUWHUWUDQVDFWLRQVRI` nil (previous year ` ODNKV DQGH[SHQGLWXUH of ` nil (previous year ` 43.80 lakhs) being the fair value of barter transactions provided and received. 43. The Company has foreign currency receivables aggregating to ` 516.30 lakhs (previous year ` 523.82 lakhs) which are outstanding for more than nine months and foreign currency payables aggregating to ` 24.67 lakhs (previous year ` 33.05 lakhs) which are outstanding IRUPRUHWKDQVL[PRQWKV7KH&RPSDQ\LVLQWKHSURFHVVRIGHDOLQJZLWKWKHVWDWXWRU\LPSOLFDWLRQVRIWKHVHGHOD\VDQGWKHPDQDJHPHQWLV RIWKHYLHZWKDWWKHVDPHZRXOGQRWKDYHDPDWHULDOLPSDFWRQWKHVHÀQDQFLDOVWDWHPHQWV 128 Network18 Media & Investments Limited and other explanatory information fortheyearended31March2016 information and otherexplanatory 6XPPDU\RIWKH6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV 7KH&RPSDQ\KDVXQDEVRUEHGGHSUHFLDWLRQDQGEURXJKWIRUZDUGO 7 47. 46. LoansandcorporateguaranteesgivenInvestmentsmade,areunderrespectiveheads. 'HWDLOVRIORDQVJLYHQLQYHVWPHQWVPDGHDQGJXDUDQWHHVJLY 4 Deferred taxesassets 44. lc od Place:Mumbai Date:20April2016 Date :20April2016 Place :Noida Membership No.:70116 Partner per imsRgsrto o:006/501 I 6440DIN:02067348 DIN:06646490 Registration No.:001076N/N500013 Firm’s hree conat himnDirector Chairman Accountants Chartered hsi sprorrpr fee ae For andonbehalfoftheBoardDirectors (formerly Walker, Chandiok&Co) For ofevendate. This isasperourreport BPSnhHrhrnMhdvnYug Samrat Mahadevan Hariharan BPSingh Walker Chandiok&CoLLP KDYLQJVXIÀFLHQWWD[DEOHLQFRPHDJDLQVWZKLFKGHIHUUHGWD[DVVH 3UHYLRXV\HDUÀJXUHVKDYHEHHQUHJURXSHGZKHUHYHUQHFHVVDU\W Financial Statements. hasbeenprovidedundertheNotestoConsolidate segmentinformation As perAccountingStandard(AS)17on“SegmentReporting”, sheet. 7LPLQJGLIIHUHQFHRQDFFRXQWRIGHSUHFLDWLRQDQGDPRUWLVDWLRQR 'HIHUUHGWD[DVVHWVLVRQDFFRXQWRI Particulars Deferred taxesassetsrecognised losses forward Carried Provision fordoubtfuldebts purposes onpaymentbasis ,PSDFWRIH[SHQGLWXUHFKDUJHGWRWKH6WDWHPHQWRI3URÀWDQG/RV QÀ[HGDVVHWV VLQWKHFXUUHQW\HDUEXWDOORZHGIRUWD[ HQFRYHUHGXV RIWKH$FW WVFDQEHUHDOLVHGQRGHIHUUHGWD[DVVHWVKDVEHHQUHFRJQLVHG *URXS&KLHI)LQDQFLDO2IÀFHU dlZiuba Rohit Bansal Adil Zainulbhai Network18 Media&InvestmentsLimited RVVHVXQGHUWKH,QFRPHWD[$FW ,QWKHDEVHQFHRIYLUWXDO RFRQÀUPWRFXUUHQW\HDUSUHVHQWDWLRQ 31 March2016 8125 24,815.83 28,172.57 M No.FCS6118 Company Secretary 2.7375.90 228.37 4.5607.00 122.87 646.45 103.35 Annual Report 2015-16 Annual Report -- 31 March2015 STANDALONE LQWKHEDODQFH FHUWDLQW\RI ` inlakhs d 129 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW Independent Auditor’s Report To the Members of Network18 Media & Investments Limited Report on the Consolidated Financial Statements Auditor’s Responsibility :H KDYH DXGLWHG WKH DFFRPSDQ\LQJ FRQVROLGDWHG ÀQDQFLDO 3. Our responsibility is to express an opinion on these consolidated statements of Network18 Media & Investments Limited, (the ÀQDQFLDOVWDWHPHQWVEDVHGRQRXUDXGLW ‘Holding Company’), its subsidiaries, its associates and jointly controlled entities (the Holding Company, its subsidiaries, :KLOHFRQGXFWLQJ WKH DXGLW ZH KDYH WDNHQ LQWR DFFRXQW WKH associates and jointly controlled entities together referred to as provisions of the Act, the accounting and auditing standards and the ‘Group’), which comprise the Consolidated Balance Sheet matters which are required to be included in the auditor’s report DVDW0DUFKWKH&RQVROLGDWHG6WDWHPHQWRI3URÀWDQG XQGHUWKHSURYLVLRQVRIWKH$FWDQGWKH5XOHVPDGHWKHUHXQGHU Loss and the Consolidated Cash Flow Statement for the year then HQGHGDQGDVXPPDU\RIWKHVLJQLÀFDQWDFFRXQWLQJSROLFLHVDQG 5. We conducted our audit in accordance with the Standards on other explanatory information. $XGLWLQJ VSHFLÀHG XQGHU 6HFWLRQ RI WKH $FW 7KRVH Standards require that we comply with ethical requirements Management’s Responsibility for the Consolidated and plan and perform the audit to obtain reasonable assurance Financial Statements DERXWZKHWKHUWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWVDUHIUHHIURP 2. The Holding Company’s Board of Directors is responsible for the material misstatement. SUHSDUDWLRQRIWKHVHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWVLQWHUPV of the requirements of the Companies Act, 2013 (the ‘Act’) that 6. An audit involves performing procedures to obtain audit evidence JLYHDWUXHDQGIDLUYLHZRIWKHFRQVROLGDWHGÀQDQFLDOSRVLWLRQ about the amounts and the disclosures in the consolidated FRQVROLGDWHGÀQDQFLDOSHUIRUPDQFHDQGFRQVROLGDWHGFDVKÁRZV ÀQDQFLDO VWDWHPHQWV 7KH SURFHGXUHV VHOHFWHG GHSHQG RQ WKH of the Group, in accordance with the accounting principles auditor’s judgment, including the assessment of the risks of generally accepted in India, including the Accounting Standards PDWHULDOPLVVWDWHPHQWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV VSHFLÀHGXQGHU6HFWLRQRIWKH$FWUHDGZLWK5XOHRIWKH whether due to fraud or error. In making those risk assessments, &RPSDQLHV $FFRXQWV 5XOHV DVDPHQGHG 7KH+ROGLQJ WKH DXGLWRU FRQVLGHUV LQWHUQDO ÀQDQFLDO FRQWUROV UHOHYDQW WR WKH Company’s Board of Directors, and the respective Board of +ROGLQJ &RPSDQ\·V SUHSDUDWLRQ RI WKH FRQVROLGDWHG ÀQDQFLDO Directors of the subsidiaries, associates and jointly controlled statements that give a true and fair view in order to design audit entities included in the Group, are responsible for the design, procedures that are appropriate in the circumstances. An audit implementation and maintenance of internal control relevant to also includes evaluating the appropriateness of the accounting WKHSUHSDUDWLRQDQGSUHVHQWDWLRQRIWKHÀQDQFLDOVWDWHPHQWVWKDW policies used and the reasonableness of the accounting estimates give a true and fair view and are free from material misstatement, made by the Holding Company’s Board of Directors, as well as whether due to fraud or error. Further, in terms with the provisions HYDOXDWLQJWKHRYHUDOOSUHVHQWDWLRQRIWKHFRQVROLGDWHGÀQDQFLDO of the Act, the respective Board of Directors of the Holding statements. Company and its subsidiary, associate and jointly controlled entities, which are incorporated in India are responsible for :HEHOLHYHWKDWWKHDXGLWHYLGHQFHREWDLQHGE\XVDQGWKHDXGLW maintenance of adequate accounting records; safeguarding the evidence obtained by the other auditors in terms of their reports assets; preventing and detecting frauds and other irregularities; referred to in sub-paragraph 9 (a) of the Other Matters paragraph selection and application of appropriate accounting policies; EHORZLVVXIÀFLHQWDQGDSSURSULDWHWRSURYLGHDEDVLVIRURXUDXGLW making judgments and estimates that are reasonable and prudent; RSLQLRQRQWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV and design, implementation and maintenance of adequate internal ÀQDQFLDOFRQWUROVWKDWZHUHRSHUDWLQJHIIHFWLYHO\IRUHQVXULQJWKH Opinion accuracy and completeness of the accounting records, relevant 8. In our opinion and to the best of our information and according WRWKHSUHSDUDWLRQDQGSUHVHQWDWLRQRIWKHÀQDQFLDOVWDWHPHQWV to the explanations given to us and based on the consideration which have been used for the purpose of preparation of the RIWKHUHSRUWVRIWKHRWKHUDXGLWRUVRQWKHÀQDQFLDOVWDWHPHQWV FRQVROLGDWHGÀQDQFLDOVWDWHPHQWVE\WKHGLUHFWRUVRIWKH+ROGLQJ of the subsidiaries, associates and jointly controlled entities as Company, as aforesaid. QRWHGEHORZWKHDIRUHVDLGFRQVROLGDWHGÀQDQFLDOVWDWHPHQWVJLYH 130 Network18 Media & Investments Limited EH LQW XLWH QQLO WWPQV I VXEVLGLDU\ RI VWDWHPHQWV ÀQDQFLDO WKH DXGLW QRW :H GLG E D:HGLGQRWDXGLWWKHÀQDQFLDOVWDWHPHQWVRIVXEVLGLD D Other Matters DQGWKHLUFRQVROLGDWHGFDVKÁRZVIRUWKH\HDUHQGHGRQWKDWGDW affairs oftheGroupasat31March2016,theirconsolidatedloss principles generallyacceptedinIndia,oftheconsolidatedstate withtheaccounting andfairviewinconformity and giveatrue requiredbytheActinmannerso the information the reports oftheotherauditors. the reports jointly controlledentitiesandassociates,isbasedsolelyon RI 6HFWLRQ the Act,insofarasitrelatestoaforesaidsubsidiaries, RI VXEVHFWLRQ RI WHUPV LQ UHSRUW RXU subsidiaries, jointlycontrolledentitiesandassociates, the amountsanddisclosuresincludedinrespectofthese FRQVROLGDWHGÀQDQFLDOVWDWHPHQWVLQVRIDUDVLWUHODWHVWR tousbytheManagementandouropinionon furnished havebeen been auditedbyotherauditorswhosereports QOGG Q KFQRLDHÀDFDVDHHW ZKRVH VWDWHPHQWV ÀQDQFLDO FRQVROLGDWHG WKH LQ LQFOXGHG KDYH VWDWHPHQWV ÀQDQFLDO 7KHVH XV E\ DXGLWHG EHHQ QRW QQLO WWPQV HHW RDDVW IHHOLPLQDWLQJ DIWHU DVVHWV WRWDO UHÁHFW VWDWHPHQWV ÀQDQFLDO KDYH VWDWHPHQWV ÀQDQFLDO ZKRVH DVVRFLDWHV RI UHVSHFW transactions) of eliminatingintra-group March 2016,totalrevenues(after intra-group transactions)of LQ VWDWHPHQWV ÀQDQFLDO FRQVROLGDWHG WKH LQ FRQVLGHUHG of IRUWKH\HDUHQGHGRQWKDWGDWH7KHFRQVROLGDWHGÀQDQFLDO WWPQV OR QOGWH UX·VDH I HSURÀW QHW RI VKDUH *URXS·V WKH LQFOXGH DOVR VWDWHPHQWV WR DPRXQWLQJ ÁRZV FDVK QHW DQG ODNKV eliminatingintra-grouptransactions)of (after ` eliminatingintra-grouptransactions)of total assets(after ÀQDQFLDOVWDWHPHQWVDUHQRWPDWHULDOWRWKH*URXS and explanationsgiventousby theManagement,these statements. Inouropinionandaccording totheinformation DQGDVVRFLDWHLVEDVHGVROHO\RQVXFKXQDXGLWHGÀQDQFLDO and disclosuresincludedinrespect ofthesesubsidiary FRQVROLGDWHGÀQDQFLDOVWDWHPHQWVDOVRLQFOXGHWKH*URXS·V to QQLO WWPQVZRH QQLO WWPQV UHÁHFW VWDWHPHQWV ÀQDQFLDO ZKRVH VWDWHPHQWV ÀQDQFLDO and 11jointlycontrolledentities,includedintheconsolidated ÀQDQFLDOVWDWHPHQWVLQVRIDUDVLWUHODWHVWRWKHDPRXQWV by theManagementandouropiniononconsolidated tous statements areunauditedandhavebeenfurnished ÀQDQFLDO ZKRVH DVVRFLDWH RI UHVSHFW LQ ÀQDQFLDO VWDWHPHQWV FRQVROLGDWHG WKH LQ FRQVLGHUHG DV 0DUFK VKDUHRIQHWSURÀWRI WWPQV DH REHDGWG \ V7HH ÀQDQFLDO 7KHVH XV E\ DXGLWHG EHHQ QRW KDYH VWDWHPHQWV ODNKVDVDW0DUFKWRWDOUHYHQXHV ` ` ODNKVIRUWKH\HDUHQGHG0DUFKDV 166.31 lakhsfortheyearendedonthatdate.The ` QLOODNKVDQGQHWFDVKÁRZVDPRXQWLQJ ` 12.33lakhsfortheyearended31 ` 663.12lakhsasat31 ` ODNKV ` ULHV H ZKYDVDGWG KLWUDÀDFDFQUORYHU FRQWUROV ÀQDQFLDO LQWHUQDO WKH DXGLWHG DOVR ZH KDYH I WKH RQ EDVHG DQG $FW WKH RI 6HFWLRQ E\ $V UHTXLUHG Requirements onOtherLegal andRegulatory Report ) On thebasisofwrittenrepresentationsreceivedfrom e) ÀQDQFLDO FRQVROLGDWHG DIRUHVDLG WKH RSLQLRQ RXU LQ G WKLV E\ ZLWK GHDOW VWDWHPHQWV ÀQDQFLDO 7KH FRQVROLGDWHG F in ouropinion,properbooksofaccountasrequiredbylaw b) a) We and havesoughtandobtainedalltheinformation 2XURSLQLRQRQWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWVDQG controlled entities, we report, totheextentapplicable,that: controlled entities,wereport, ofthe,subsidiaries,associatesandjointly reports auditor’s ÀQDQFLDOUHSRUWLQJ ,)&R)5 RIWKH&RPSDQ\LWVVXEVLGLDU\ $QQH[XUH,H[SUHVVHGXQTXDOLÀHGRSLQLRQ DQG dated20April2016asper ended onthatdate andourreport WHUPVRI6HFWLRQ RIWKH$FW as on31March2016frombeingappointedadirectorin 5HSRUWDUHLQDJUHHPHQWZLWKWKHUHOHYDQWERRNVRIDFFRXQW FRQVROLGDWHGÀQDQFLDOVWDWHPHQWVRIWKH*URXSIRUWKH\HDU of 31March2016,inconjunction withourauditofthe entities, whicharecompaniesincorporated inIndia,as companies, associatecompanies andjointlycontrolled RIWKH*URXSFRPSDQLHVLQFRUSRUDWHGLQ,QGLDLVGLVTXDOLÀHG controlled entitiesincorporatedinIndia,noneofthedirectors companies,associatecompaniesandjointly its subsidiary auditorsof oftheotherstatutory Company andthereports taken onrecordbytheBoardofDirectorsHolding the directorsofHoldingCompanyason31March2016 WKH RI 5XOH ZLWK UHDG &RPSDQLHV $FFRXQWV 5XOHV DVDPHQGHG $FW WKH RI 6HFWLRQ XQGHU VWDWHPHQWVFRPSO\ZLWKWKH$FFRXQWLQJ6WDQGDUGVVSHFLÀHG auditors; oftheother examination ofthosebooksandthereports statements havebeenkeptsofarasitappearsfromour UHODWLQJWRSUHSDUDWLRQRIWKHDIRUHVDLGFRQVROLGDWHGÀQDQFLDO FRQVROLGDWHGÀQDQFLDOVWDWHPHQWV forthepurposeofourauditaforesaid were necessary explanations whichtothebestofourknowledgeandbelief ÀQDQFLDOVWDWHPHQWV maintained forthepurposeofpreparationconsolidated RIWKHRWKHUDXGLWRUVDQGWKHÀQDQFLDOVWDWHPHQWVFHUWLÀHGE\ respect toourrelianceontheworkdonebyandreports EHORZLVQRWPRGLÀHGLQUHVSHFWRIWKHDERYHPDWWHUVZLWK XUSUR2KU HDDG HXDR\ 5HTXLUHPHQWV 5HJXODWRU\ DQG /HJDO 2WKHU RQ UHSRUW RXU the Management. Annual Report 2015-16 Annual Report CONSOLIDATED 131 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW g) With respect to the other matters to be included in the were no amounts which were required to be transferred $XGLWRU·V 5HSRUW LQ DFFRUGDQFH ZLWK 5XOH RI WKH to the Investor Education and Protection Fund by the &RPSDQLHV $XGLWDQG$XGLWRU·V 5XOHVLQRXURSLQLRQ other subsidiary companies, associate companies and and to the best of our information and according to the joint controlled companies incorporated in India. explanations given to us: For Walker Chandiok & Co LLP L DV GHWDLOHG LQ 1RWH WKH FRQVROLGDWHG ÀQDQFLDO (formerly Walker, Chandiok & Co) statements disclose the impact of pending litigations Chartered Accountants RQWKHFRQVROLGDWHGÀQDQFLDOSRVLWLRQRIWKH*URXS )LUP·V5HJLVWUDWLRQ1R 11 (ii) the Group did not have any long-term contracts per B P Singh including derivative contracts for which there were any Partner material foreseeable losses; and 0HPEHUVKLS1R (iii) there has been no delay in transferring amounts, Place : Noida required to be transferred, to the Investor Education and Date : 20 April 2016 Protection Fund by the Holding Company and two of the subsidiary companies, incorporated in India. There Annexure I 7RWKH,QGHSHQGHQW$XGLWRU·V5HSRUWRIHYHQGDWHWRWKHPHPEHUVRI1HWZRUN0HGLD ,QYHVWPHQWV/LPLWHGRQWKHFRQVROLGDWHGÀQDQFLDO statements for the year ended 31 March 2016 Independent Auditor’s report on the Internal Financial 5HSRUWLQJ WKH ¶*XLGDQFH 1RWH· LVVXHG E\ WKH ,QVWLWXWH RI Controls under Clause (i) of Sub-section 3 of Section Chartered Accountants of India ( ‘ICAI’). These responsibilities 143 of the Companies Act, 2013 (the ‘Act’) include the design, implementation and maintenance of adequate ,Q FRQMXQFWLRQ ZLWK RXU DXGLW RI WKH FRQVROLGDWHG ÀQDQFLDO LQWHUQDO ÀQDQFLDO FRQWUROV WKDW ZHUH RSHUDWLQJ HIIHFWLYHO\ IRU statements of the Network18 Media & Investments Limited HQVXULQJ WKH RUGHUO\ DQG HIÀFLHQW FRQGXFW RI WKH FRPSDQ\·V (the ‘Holding Company’), its subsidiaries, its associates and business, including adherence to the company’s policies, jointly controlled entities (the Holding Company, its subsidiaries, the safeguarding of the company’s assets, the prevention and associates and jointly controlled entities together referred to as detection of frauds and errors, the accuracy and completeness the ‘Group’), as of and for the year ended 31 March 2016, we of the accounting records, and the timely preparation of reliable KDYHDXGLWHGWKHLQWHUQDOÀQDQFLDOFRQWUROVRYHUÀQDQFLDOUHSRUWLQJ ÀQDQFLDOLQIRUPDWLRQDVUHTXLUHGXQGHUWKH$FW ,)&R)5 RIWKH+ROGLQJ&RPSDQ\LWVVXEVLGLDU\FRPSDQLHVLWV associate companies and its jointly controlled entities, which are Auditor’s Responsibility companies incorporated in India, as of that date. 2XUUHVSRQVLELOLW\ LV WR H[SUHVV DQ RSLQLRQ RQ WKH ,)&R)5 RI the Holding Company, its subsidiary companies, its associate Management’s Responsibility for Internal Financial companies and jointly controlled entities as aforesaid, based Controls on our audit. We conducted our audit in accordance with 2. The respective Board of Directors of the Holding Company, its the Standards on Auditing, issued by the ICAI and deemed to subsidiary companies, its associate companies and its jointly EH SUHVFULEHG XQGHU VHFWLRQ RI WKH $FW WR WKH H[WHQW controlled entities, which are companies incorporated in India, DSSOLFDEOHWRDQDXGLWRI,)&R)5DQGWKH*XLGDQFH1RWHLVVXHGE\ DUHUHVSRQVLEOHIRUHVWDEOLVKLQJDQGPDLQWDLQLQJLQWHUQDOÀQDQFLDO the ICAI. Those Standards and the Guidance Note require that we FRQWUROV EDVHG RQ WKH LQWHUQDO FRQWURO RYHU ÀQDQFLDO UHSRUWLQJ comply with ethical requirements and plan and perform the audit criteria established by the respective company considering the WRREWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUDGHTXDWH,)&R)5 essential components of internal control stated in the Guidance were established and maintained and if such controls operated Note on Audit of Internal Financial Controls over Financial effectively in all material respects. 132 Network18 Media & Investments Limited 2U XLLYOHSURPQSRHXHWRWLDXGLW REWDLQ WR SURFHGXUHV SHUIRUPLQJ LQYROYHV DXGLW 2XU %HFDXVHRIWKHLQKHUHQWOLPLWDWLRQVRI,)&R)5LQFOXGLQJWK over FinancialReporting Inherent LimitationsofInternalFinancialControls $FRPSDQ\·V,)&R)5LVDSURFHVVGHVLJQHGWRSURYLGHUHDVRQD Reporting Meaning ofInternalFinancialControlsover . We believethattheauditevidencewehaveobtainedand 5. VHV KW ROKYD DHLO IHW Q KÀQDQFLDO WKH RQ HIIHFW PDWHULDO D statements. KDYH FRXOG WKDW DVVHWV unauthorised acquisition,use,ordispositionofthecompany’s reasonable assuranceregardingpreventionortimelydetectionof of managementanddirectorsthecompany;(3)provide company arebeingmadeonlyinaccordancewithauthorisations accounting principles,andthatreceiptsexpendituresofthe I QQLO WWPQV Q FRGQH LK HHDODFFHSWHG JHQHUDOO\ ZLWK DFFRUGDQFH LQ VWDWHPHQWV ÀQDQFLDO RI preparation topermit that transactionsarerecordedasnecessary the assetsofcompany;(2)providereasonableassurance DFFXUDWHO\DQGIDLUO\UHÁHFWWKHWUDQVDFWLRQVDQGGLVSRVLWLRQV tothemaintenanceofrecordsthat,inreasonabledetail, (1) pertain IHWYQV XDGW I )R5 QOGG EDQQDQ REWDLQLQJ LQFOXGHG ,)&R)5 RI DXGLW 2XU HIIHFWLYHQHVV HYLGHQFHDERXWWKHDGHTXDF\RIWKH,)&R)5DQGWKHLURSHUDWLQJ FRPSDQ\·V,)&R)5LQFOXGHVWKRVHSROLFLHVDQGSURFHGXUHVWKDW LQ SXUSRVHV H[WHUQDO accordance withgenerallyacceptedaccountingprinciples.A IRU VWDWHPHQWV ÀQDQFLDO RI SUHSDUDWLRQ QHVDGQR,&) VHVQWH LN KW PDWHULDO D WKDW ULVN WKH DVVHVVLQJ ,)&R)5 RI XQGHUVWDQGLQJ DVVXUDQFHUHJDUGLQJWKHUHOLDELOLW\RIÀQDQFLDOUHSRUWLQJDQGW $OVRSURMHFWLRQVRIDQ\HYDOXDWLRQRIWKH,)&R)5WRIXWXUHSHU orfraudmayoccurandnotbedetected. misstatements duetoerror ofcontrols,material of collusionorimpropermanagementoverride VXEMHFWWRWKHULVNWKDWWKH companies andjointlycontrolledentitiesasaforesaid. of theHoldingCompany, companies,itsassociate itssubsidiary DSSURSULDWHWRSURYLGHDEDVLVIRURXUDXGLWRSLQLRQRQWKH,)& UHIHUUHGWRLQWKH2WKHU0DWWHUVSDUDJUDSKEHORZLVVXIÀFLHQW oftheirreports evidence obtainedbytheotherauditorsinterms WKHÀQDQFLDOVWDWHPHQWVZKHWKHUGXHWRIUDXGRUHUURU including theassessmentofrisksmaterialmisstatement judgement, risk. Theproceduresselecteddependontheauditor’s control basedontheassessed operating effectivenessofinternal weakness exists,andtestingevaluatingthedesign policies orproceduresmaydeteriorate. of changesinconditions,orthatthe degreeofcompliancewiththe ,)&R)5PD\EHFRPHLQDGHTXDWHEHFDX HSRVVLELOLW\ LRGVDUH R)5 DQG EOH KH VH RI Date :20April2016 Place :Noida 0HPEHUVKLS1R Partner per )LUP·V5HJLVWUDWLRQ1R 11 Accountants Chartered (formerly Walker, Chandiok&Co) For :HGLGQRWDXGLWWKH,)&R)5LQVRIDUDVLWUHODWHVWRVXE Other Matters In ouropinion,theHoldingCompany, companies, itssubsidiary 8. Opinion Walker Chandiok&CoLLP B PSingh reports oftheotherauditors. reports matter withrespecttoourrelianceontheworkdonebyand internal controlstatedintheGuidance NoteissuedbytheICAI. internal respective companyconsideringtheessentialcomponentsof FRPSDQLHV2XURSLQLRQLVQRWPRGLÀHGLQUHVSHFWRIWKHDERYH oftheauditorssuch reports solely basedonthecorresponding controlled entities,whicharecompaniesincorporatedinIndia,is as itrelatestotheaforesaidsubsidiaries,associatesandjointly KDVEHHQFRQVLGHUHGLQWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV2X RQWKDWGDWH DQGDVVRFLDWHFRPSDQLHVZKLFKDUHFRPSDQLHV QHWFDVKRXWÁRZVDPRXQWLQJWR LQWHUQDOFRQWURORYHUÀQDQFLDOUHSRUWLQJFULWHULDHVWDEOLVKHGE UHSRUWLQJ ÀQDQFLDO RYHU FRQWUROV were operatingeffectivelyasat31March2016,basedonthe ÀQDQFLDO LQWHUQDO VXFK DQG LQFRUSRUDWHGLQ,QGLDXQGHU6HFWLRQ L RIWKH$FWLQVRI companies andjointlycontrolledentities,whichare for theHoldingCompany, companies,itsassociate itssubsidiary UHSRUWRQWKHDGHTXDF\DQGRSHUDWLQJHIIHFWLYHQHVVRIWKH,)&R) QHWSURÀWRI incorporated inIndia,respectofwhich,theGroup’sshare eliminating intra-grouptransactions)of ` VWDWHPHQWV UHÁHFWWRWDODVVHWV DIWHUHOLPLQDWLQJLQWUDJURXSWUDQVDFWLRQV ÀQDQFLDO ZKRVH ,QGLD LQ LQFRUSRUDWHG FRPSDQLHV companies and6jointlycontrolledcompanies,whichare UHSRUWLQJ ÀQDQFLDO RYHU FRQWUROV ÀQDQFLDO LQWHUQDO DGHTXDWH companies incorporatedinIndia,have,allmaterialrespects, its associatecompaniesandjointlycontrolledentities,whichare ODNKVDVDW0DUFKWRWDOUHYHQXHV DIWHU ` ODNKVIRUWKH\HDUHQGHG0DUFK ` ODNKVIRUWKH\HDUHQGHG Annual Report 2015-16 Annual Report ` ODNKVDQG CONSOLIDATED VLGLDU\ \WKH RI 133 DU 5 U FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW Consolidated Balance Sheet As at 31 March 2016 ` in lakhs As at As at Notes 31 March 2016 31 March 2015 EQUITY AND LIABILITIES Shareholders’ funds Share capital 3 5HVHUYHVDQGVXUSOXV Minority interest Non-current liabilities Long-term borrowings 5 15,505.15 Other long-term liabilities 6 222.62 113.91 Long-term provisions 3,616.92 Current liabilities Short-term borrowings 8 Trade payables Due to micro and small enterprises 9 168.18 23.06 Others 9 Other current liabilities 10 Short-term provisions 11 TOTAL 6,00,364.93 5,70,069.16 ASSETS Non-current assets Fixed assets Tangible assets 12 Intangible assets 12 5,181.53 Capital work-in-progress Intangible assets under development 390.90 Goodwill on consolidation Non-current investments 13 Deferred tax assets (net) 825.82 Long-term loans and advances 15 Other non-current assets 16 Current assets Current investments Inventories 18 Trade receivables 19 61,690.58 Cash and bank balances 20 30,991.65 Short-term loans and advances 21 Other current assets 22 TOTAL 6,00,364.93 5,70,069.16 6LJQLÀFDQWDFFRXQWLQJSROLFLHV 6HHDFFRPSDQ\LQJQRWHVIRUPLQJSDUWRIWKHVHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV This is as per our report of even date. For and on behalf of the Board of Directors of Network18 Media & Investments Limited For Walker Chandiok & Co LLP (formerly Walker, Chandiok & Co) Adil Zainulbhai 5RKLW%DQVDO Chartered Accountants Chairman Director )LUP·V5HJLVWUDWLRQ1R 11 ',1 ',1 per B P Singh Hariharan Mahadevan Yug Samrat Partner *URXS&KLHI)LQDQFLDO2IÀFHU Company Secretary 0HPEHUVKLS1R M No. FCS6118 Place : Noida Place : Mumbai Date : 20 April 2016 Date : 20 April 2016 Network18 Media & Investments Limited For theyearended31March2016 &RQVROLGDWHG6WDWHPHQWRI3URÀWDQG/RVV Total revenue Other income oto aeil osmdadtae od od25 (PSOR\HHEHQHÀWVH[SHQVH Cost ofmaterialsconsumedandtradedgoodssold andbusinesspromotion Distribution, advertising Programming cost EXPENSES 5HYHQXHIURPRSHUDWLRQV REVENUE Earnings pershare(basicanddiluted) ro eidies 0 - - 93,666.08 30 29 28 Minority interest associates 3URÀW ORVV DIWHUWD[IRUWKH\HDUEHIRUHPLQRULW\LQWHUHVWDQ 12 3URÀW ORVV IURPFRQWLQXLQJRSHUDWLRQDIWHUWD[ Net taxexpense 3URÀW ORVV EHIRUHWD[PLQRULW\LQWHUHVWDQGVKDUHLQSURÀWR Prior perioditems Exceptional items SURÀWRIDVVRFLDWHV 3URÀWEHIRUHH[FHSWLRQDOLWHPVSULRUSHULRGLWHPVWD[PLQRUL Total expenses Other expenses expense Depreciation andamortisation Finance costs a xes eaigt ale er 106 31.98 160.62 Loss attributabletoownersoftheCompany Loss fortheyear 6KDUHLQSURÀWRIDVVRFLDWHV 0LQRULW\LQWHUHVWLQSURÀW ORVV tax Loss fromdiscontinuingoperationafter 'HIHUUHGWD[FKDUJH EHQHÀW taxexpense Netcurrent Tax expenserelatingto earlier years taxcredit Less:Minimumalternate taxexpense Current Income taxexpenseofcontinuingoperation 3URÀW ORVV IRUWKH\HDUIURPFRQWLQXLQJRSHUDWLRQEHIRUHWD[ 6HHDFFRPSDQ\LQJQRWHVIRUPLQJSDUWRIWKHVHFRQVROLGDWHGÀQDQF 6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV lc od Place:Mumbai Date:20April2016 Date :20April2016 Place :Noida 0HPEHUVKLS1R Partner per LPV5JVUWRR ,',1 ',1 )LUP·V5HJLVWUDWLRQ1R 11 hree conat himnDirector Chairman Accountants Chartered hsi sprorrpr fee ae For andonbehalfoftheBoardDirectors (formerly Walker, Chandiok&Co) For ofevendate. This isasperourreport BPSnhHrhrnMhdvnYug Samrat Mahadevan Hariharan BPSingh Walker Chandiok&Co LLP GVKDUHLQSURÀWRI IDVVRFLDWHV W\LQWHUHVWDQGVKDUHLQ LDOVWDWHPHQWV *URXS&KLHI)LQDQFLDO2IÀFHU Adil Zainulbhai Network18 Media&InvestmentsLimited Notes 26 23 31 32 34,9.6 3,19,138.15 3,49,498.86 34,5.3 3,16,196.82 3,40,858.13 (,6.8 (1,05,990.88) (3,468.78) 8607 2,941.33 8,640.73 3899 (1,12,902.53) 3,897.80 (1,12,859.52) 3,859.95 3,927.35 4,780.78 (1,09,004.73) 8,640.73 4660 4,256.66 4,626.08 2015-16 (.3 (10.13) (0.33) M No.FCS6118 Company Secretary 5RKLW%DQVDO Annual Report 2015-16 Annual Report CONSOLIDATED (1,05,990.88) 56,932.20 ` (358.86) 2014-15 inlakhs 135 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW Consolidated Cash Flow Statement For the year ended 31 March 2016 ` in lakhs 2015-16 2014-15 A. CASH FLOW FROM OPERATING ACTIVITIES 3URÀW ORVV EHIRUHWD[ Adjustments for : Depreciation and amortisation expenses /RVVRQVDOHGLVSRVDORIÀ[HGDVVHWV QHW 91.11 Employee stock compensation expenses (53.65) Finance costs %DGGHEWVDQGDGYDQFHVZULWWHQRIISURYLGHGIRU 2,265.18 ([FKDQJHÁXFWXDWLRQ QHW 20.28 261.01 Dividend on current investments (310.29) Dividend on long term investments - (0.83) 3URÀWRQVDOHRIFXUUHQWLQYHVWPHQWV (950.51) Excess provisions written back (1,988.29) (2,962.80) Interest income (2,299.22) *DLQRQGLOXWLRQRIVWDNHGLVSRVDORILQYHVWPHQW V LQVXEVLGLDU\VXEVLGLDULHV - Provision for diminution in value of long term investments - 2EVROHVFHQFHLPSDLUPHQW DFFHOHUDWHGGHSUHFLDWLRQ RIWDQJLEOHDQGLQWDQJLEOHDVVHWV - 3URYLVLRQIRULPSDLUPHQWRIJRRGZLOORWKHUDVVHWV - 2SHUDWLQJSURÀWEHIRUHZRUNLQJFDSLWDOFKDQJHV 21,859.82 16,285.17 Adjustments for : Increase in loan and advances, other assets, inventories and trade receivables Increase in trade payables, provisions and other liabilities &DVKÁRZIURPRSHUDWLRQV 11,357.65 (923.47) Taxes paid (net of refund) (9,016.88) Net cash used in operating activities (2,920.71) (9,940.35) B. CASH FLOW FROM INVESTING ACTIVITIES 3XUFKDVHRIÀ[HGDVVHWV LQFOXGLQJFDSLWDODGYDQFHV (18,382.98) 6DOHRIÀ[HGDVVHWV 'LVSRVDORILQWHUHVWLQYHVWPHQWVLQVXEVLGLDULHV 2,913.30 3XUFKDVH VDOHRIFXUUHQWLQYHVWPHQWV QHW 6,156.80 (1,069.83) Purchase of long term investments: - in subsidiaries - - in other companies (1,300.11) Decrease in other bank balances 12,591.99 Interest received 1,051.56 Dividend received on current investments 310.29 Dividend received on long term investments - 0.83 1HWFDVK XVHGLQ IURPLQYHVWLQJDFWLYLWLHV (9,187.88) 13,428.96 136 Network18 Media & Investments Limited For theyearended31March2016 Consolidated CashFlowStatement 6HHDFFRPSDQ\LQJQRWHVIRUPLQJSDUWRIWKHVHFRQVROLGDWHGÀQDQF 6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV 3UHYLRXV\HDUÀJXUHVKDYHEHHQUHJURXSHGDQGUHFDVWZKHUHYHU )LJXUHVLQEUDFNHWVLQGLFDWHFDVKRXWÁRZ 7KHDERYHFDVKÁRZVWDWHPHQWKDVEHHQSUHSDUHGXQGHUWKHLQG CASHFLOW FROMFINANCINGACTIVITIES C. lc od Place:Mumbai Date:20April2016 Date :20April2016 Place :Noida 0HPEHUVKLS1R Partner per LPV5JVUWRR ,',1 ',1 )LUP·V5HJLVWUDWLRQ1R 11 hree conat himnDirector Chairman Accountants Chartered hsi sprorrpr fee ae For andonbehalfoftheBoardDirectors (formerly Walker, Chandiok&Co) For ofevendate. This isasperourreport BPSnhHrhrnMhdvnYug Samrat Mahadevan Hariharan BPSingh Walker Chandiok&Co LLP Cash onhand &KHTXHVGUDIWVRQKDQG Balances withbanks: Cash andcashequivalentsasattheendofyear Cash andcashequivalentsadjustmentonaccountofPrism TVPrivate Limited Exchange differencesoncashandequivalents Cash andcashequivalentsasatthebeginningofyear Net decreaseincashandequivalents 1HWFDVKIURP XVHGLQ ÀQDQFLQJDFWLYLWLHV (net) borrowings term Proceeds fromshort borrowings Proceeds fromlongterm 5HSD\PHQWRIORQJWHUPERUURZLQJV Proceeds fromissueofsharesbysubsidiary Share applicationmoneyreceived Proceeds fromissueofequityshares(includingsecuritiespremium) Finance costs Cash andcashequivalents In depositaccounts accounts In current LDOVWDWHPHQWV QHFHVVDU\WRFRQIRUPWRWKHFXUUHQW\HDUFODVVLÀFDWLRQ LUHFWPHWKRGVHWRXWLQ$FFRXQWLQJ6WDQGDUG¶&DVK)ORZ6WDWH *URXS&KLHI)LQDQFLDO2IÀFHU Adil Zainulbhai Network18 Media&InvestmentsLimited 1,1.4 25,098.60 18,516.94 1,1.4 25,098.60 18,516.94 2,9.0 29,622.16 2,361.50 25,098.60 15,681.99 5643 (8,057.18) 5,614.38 9,901.38 8,105.50 (6.3 - (160.83) 2015-16 M No.FCS6118 Company Secretary 5RKLW%DQVDO 59.90 32.10 Annual Report 2015-16 Annual Report - 3,918.00 - - CONSOLIDATED (20,606.26) PHQW· 12,665.16 ` 2014-15 inlakhs FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 1. 7KHVHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWVFRPSULVHDFRQVROLGDWLRQRIWKHÀQDQFLDOVWDWHPHQWVRI1HWZRUN0HGLD ,QYHVWPHQWV/LPLWHG (“the Company” or “Network18” or “the parent”), its subsidiaries, jointly controlled entities and associates (hereinafter collectively referred to as the “Group”) as listed below: Country of Percentage of S. No. Name of consolidated entity incorporation holding Direct subsidiaries 1 Network18 Holdings Limited Mauritius 100 2 Capital18 Fincap Private Limited India 100 3 Television Eighteen Mauritius Limited (TEML) Mauritius 100 Television Eighteen Media and Investments Limited (TEMIL) Mauritius 100 5 Digital18 Media Limited India 100 6 TV18 Broadcast Limited India 51.16 Infomedia Press Limited India 50.69 Subsidiary by virtue of control of composition of Boards of Directors 8 Big Tree Entertainment Private Limited * India 39.35 Subsidiaries of subsidiary companies Subsidiaries of TV18 Broadcast Limited 9 5970HGLD3ULYDWH/LPLWHG India 100 10 ibn18 (Mauritius) Limited Mauritius 100 11 Equator Trading Enterprises Private Limited (Equator) India 100 Subsidiary of RVT Media Private Limited 12 AETN18 Media Private Limited India 51 Subsidiaries of Equator Trading Enterprises Private Limited 13 Panorama Television Private Limited India 100 Prism TV Private Limited (upto 31 July 2015) ** India 50 Subsidiaries of Television Eighteen Mauritius Limited, Mauritius 15 &DSLWDO/LPLWHG XSWR-XQH Mauritius 100 16 %.+ROGLQJV/LPLWHG XSWR-XQH Mauritius 100 Subsidiary of Television Eighteen Media & Investments Limited, Mauritius Web18 Holdings Limited # Cyprus 100 Subsidiary of Web18 Holdings Limited, Cyprus 18 E-18 Limited Cyprus 100 Subsidiaries of E-18 Limited, Cyprus 19 e-Eighteen.com Limited India 91.95 20 Web18 Software Services Limited India 100 Subsidiary of e-Eighteen.com Limited 21 Moneycontrol Dot Com India Limited India 100 Subsidiaries of Network18 Holdings Limited, Mauritius 22 NW18 HSN Holdings Plc ## Cyprus Subsidiaries of NW18 HSN Holdings Plc, Cyprus 23 TV18 Home Shopping Network Limited India 100 Subsidiaries of Capital18 Fincap Private Limited 55.)LQKROG3ULYDWH/LPLWHG India 100 25 597)LQKROG3ULYDWH/LPLWHG India 100 26 55%,QYHVWPHQWV3ULYDWH/LPLWHG India 100 Setpro18 Distribution Limited India 100 28 Stargaze Entertainment Private Limited (upto 23 April 2015) India 90 29 5HHG,QIRPHGLD,QGLD3ULYDWH/LPLWHG India 100 30 Colosceum Media Private Limited India 100 138 Network18 Media & Investments Limited and other explanatory information fortheyearended31March2016 information and otherexplanatory 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV ** The Company was subsidiary ofEquatorTrading ofcontrolcompositionBoards TheCompanywassubsidiary EnterprisesPrivate Limitedbyvirtue 7KH&RPSDQ\KROGVRIWKHVKDUHKROGLQJGLUHFWO\DQG ** 1HWZRUN*URXS6HQLRU3URIHVVLRQDO:HOIDUH7UXVWDWUXVWI # Percentage aspershareholdersagreementbetweenSAIFIIMauritiusCompanyLimited, GSHomeShoppingInc.,Mak determined ## 7KH&RPSDQ\KROGV RIWKHVKDUHKROGLQJWKURXJK7(0,/ ^ Wholly owned subsidiary ofViacom18MediaPrivate Limited. Whollyownedsubsidiary ^ 7KH&RPSDQ\KROGVRIWKHVKDUHKROGLQJWKURXJK597) A 6XEVLGLDU\RI5RSWRQDO/LPLWHG AA @ HFRQRPLFEHQHÀWZLOOÁRZWRWKH&RPSDQ\IURPWKLVWUXVW 3EenaduTelevision Private Limited Associate ofBigTree PrivateLimited Entertainment Wespro DigitalPrivate Limited(upto8April2015) 53 Associate ofEquatorTrading EnterprisesPrivateLimited 52 Associate ofRRKFinholdPrivateLimited 51 Associates ofRVTFinholdPrivateLimited 50 Associates ofCapital18FincapPrivateLimited Joint Venture ofCapital18FincapPrivateLimited Joint Venture ofEquatorTrading EnterprisesPrivateLimited 5RSWRQDO/LPLWHGA Viacom18Media(UK)Limited^ Viacom18MediaPrivate Limited 39 38 Joint venturesofTV18BroadcastLimited Name ofconsolidatedentity S. No. 5SpaceboundWeb LabsPrivate Limited(wef23April2015) )DQWDLQ6SRUWV3ULYDWH/LPLWHG ZHI)HEUXDU\ 36 35 Subsidiaries ofBigTree PrivateLimited Entertainment 33 SubsidiariesofWebchutney StudioPrivateLimited Greycells18MediaLimited### 32 SubsidiariesofCapital18Limited,Mauritius 31 SubsidiariesofRVTFinholdPrivateLimited Subsidiary ofIndiaCastMediaDistributionPrivate Limited. Subsidiary Limited andNetwork18HoldingsLimited. IndiaCast UKLimited IndiaCast MediaDistributionPrivate Limited The Indian Film Company Limited (upto 19 January 2015)^^ The IndianFilmCompanyLimited(upto19January Viacom18 USInc^ Indiacast DistributionPrivate Limited(earlierIndiacastUTV MediaDistributionPrivate Limited) Book My Show Limited and its fully owned subsidiary BookMyShow(NZ)Limited Book MyShowLimitedanditsfullyownedsubsidiary ;/HDUQLQJ3ULYDWH/LPLWHG ZHI 0DUFK ;/HDUQLQJ3ULYDWH/LPLWHG XSWR0DUFK Private Limited Aeon Learning Ubona Technologies Private Limited Prism TVPrivate Limited(wef01August2015) IBN LokmatNewsPrivate Limited IndiaCast USLimited %LJ7UHH(QWHUWDLQPHQW6LQJDSRUH37(/LPLWHG ZHI1RYHPEHU %OXH6ODWH0HGLD3ULYDWH/LPLWHG XSWR0D\ :HEFKXWQH\6WXGLR3ULYDWH/LPLWHG XSWR0D\ @ @ RUPHGIRUWKHZHOIDUHRIVSHFLÀHGHPSOR\HHVRIWKH&RPSDQ\DQG LQKROG3ULYDWH/LPLWHGDQGWKURXJK&DSLWDO)LQFDS3ULYD RIWKHVKDUHKROGLQJWKURXJK(/LPLWHG&\SUXV DQGRIWKHVKDUHKROGLQJWKURXJK7(0/ @ LWVVXEVLGLDULHVKDVQRWEHHQFRQVROLGDWHGVLQFHQR Directors. WH/LPLWHG incorporation e eln 26 New Zealand ira SP5Limited,OrchardCentarMaster Country of Country igpr 100 Singapore Annual Report 2015-16 Annual Report yrs100 Cyprus yrs100 Cyprus Ida50 India ni 100 India India 25 India 50 India 50 India India India India 50 50 India India ni 51 100 India India India India India K100 UK K100 UK S100 US S100 US CONSOLIDATED Percentage of holding 139 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV DV DPHQGHG 7KH FRQVROLGDWHG ÀQDQFLDO VWDWHPHQWV DUH $ %DVLVRISUHSDUDWLRQRIÀQDQFLDOVWDWHPHQWV prepared on the following basis: 7KH FRQVROLGDWHG ÀQDQFLDO VWDWHPHQWV RI WKH &RPSDQ\ its subsidiaries, associates and jointly controlled entities L &RQVROLGDWHGÀQDQFLDOVWDWHPHQWVLQFOXGHFRQVROLGDWHG (collectively referred to as the ‘Group’) have been prepared EDODQFH VKHHW FRQVROLGDWHG VWDWHPHQW RI SURÀW DQG in accordance with the generally accepted accounting ORVV FRQVROLGDWHG VWDWHPHQW RI FDVK ÁRZV DQG principles in India (‘Indian GAAP’) to comply with the other explanatory information forming part of the $FFRXQWLQJ 6WDQGDUGV QRWLÀHG XQGHU 6HFWLRQ RI FRQVROLGDWHG ÀQDQFLDO VWDWHPHQWV 7KH FRQVROLGDWHG WKH &RPSDQLHV $FW ¶$FW· UHDG ZLWK 5XOH RI WKH ÀQDQFLDO VWDWHPHQWV DUH SUHVHQWHG WR WKH H[WHQW &RPSDQLHV $FFRXQWV 5XOHV DVDPHQGHG DQGWKH possible, in the same format as that adopted by the SURYLVLRQVRIWKH$FW7KHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV SDUHQWIRUVWDQGDORQHÀQDQFLDOVWDWHPHQWV have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the LL 7KH FRQVROLGDWHG ÀQDQFLDO VWDWHPHQWV LQFOXGH WKH SUHSDUDWLRQ RI WKH FRQVROLGDWHG ÀQDQFLDO VWDWHPHQWV DUH ÀQDQFLDO VWDWHPHQWV RI WKH &RPSDQ\ DQG DOO LWV consistent with those followed in the previous year. subsidiaries, which are more than 50 per cent owned or whose composition of Board of Directors is controlled $OODVVHWVDQGOLDELOLWLHVKDYHEHHQFODVVLÀHGDVFXUUHQWRUQRQ by the Company. Investments in entities that were not current as per the Company’s normal operating cycle and other more than 50 per cent owned or controlled during the FULWHULDVHWRXWLQWKH5HYLVHG6FKHGXOH,,,WRWKH&RPSDQLHV$FW year have been accounted for in accordance with the 2013. Based on the nature of services and the time between provisions of Accounting Standard 13 ‘Accounting for the acquisition of assets for processing and their realisation in Investments’, or Accounting Standard 23 ‘Accounting cash and cash equivalents, the Company has ascertained its for Investments in Associates in Consolidated Financial RSHUDWLQJF\FOHDVWZHOYHPRQWKVIRUWKHSXUSRVHRIFXUUHQW 6WDWHPHQWV· RU $FFRXQWLQJ 6WDQGDUG ¶)LQDQFLDO QRQFXUUHQWFODVVLÀFDWLRQRILWVDVVHWVDQGOLDELOLWLHV 5HSRUWLQJRI,QWHUHVWVLQ-RLQW9HQWXUHV· B. Use of estimates LLL 7KH FRQVROLGDWHG ÀQDQFLDO VWDWHPHQWV KDYH EHHQ 7KH SUHSDUDWLRQ RI FRQVROLGDWHG ÀQDQFLDO VWDWHPHQWV LQ combined on a line-by-line basis by adding the book conformity with Indian GAAP requires judgements, estimates values of like items of assets, liabilities, income and and assumptions to be made that effect the reported amount H[SHQVHV DIWHU HOLPLQDWLQJ LQWUDJURXS EDODQFHV of assets and liabilities, disclosure of contingent liabilities transactions and resulting elimination of unrealised and the reported amount of income and expenses during the SURÀWVLQIXOO7KHDPRXQWVVKRZQLQUHVSHFWRIUHVHUYHV year. Difference between the actual results and estimates are comprise the amount of the relevant reserves as per the UHFRJQLVHGLQWKHSHULRGVLQZKLFKWKHUHVXOWVDUHNQRZQ balance sheet of the parent company and its share in materialise. the post-acquisition increase in the relevant reserves of the entity to be consolidated. Financial interest in jointly C. Principles of consolidation controlled entities has been accounted for under the 7KHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWVLQFOXGHWKHÀQDQFLDO proportionate consolidation method. statements of the Company, its subsidiaries, jointly FRQWUROOHGHQWLWLHVDQGDVVRFLDWHV7KHFRQVROLGDWHGÀQDQFLDO iv. Investments in associates are accounted for using the statements of the Group have been prepared in accordance equity method. The excess of cost of investment over with Accounting Standard (AS 21) ‘Consolidated Financial the proportionate share in equity of the associate as at Statements’, AS 23 ‘Accounting for Investments in WKHGDWHRIDFTXLVLWLRQRIVWDNHLVLGHQWLÀHGDVJRRGZLOO Associates in Consolidated Financial Statements’ and AS and included in the carrying value of the investment in ¶)LQDQFLDO 5HSRUWLQJ RI ,QWHUHVWV LQ -RLQW 9HQWXUHV· DV the associate. The carrying amount of the investment DSSOLFDEOH QRWLÀHG XQGHU 6HFWLRQ RI WKH $FW UHDG is adjusted thereafter for the post acquisition change ZLWK 5XOH RI WKH &RPSDQLHV $FFRXQWV 5XOHV in the share of net assets of the associate. However, Network18 Media & Investments Limited 5HYHQXHIURPVDOHRIDGYHUWLVLQJWLPHVSDFHLQHOHFWURQLF revenuecomprisesof The Group’s advertisement frommediaoperations Revenue Advertisement revenue andsponsorship revenuefrom websitesis Advertising RSHUDWLRQV PHGLD IURP UHYHQXH FRPSULVHV 5HYHQXH D. Revenue recognition fortheyearended31March2016 information and otherexplanatory 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV . v.Minority interestrepresentstheamountofequity 5HYHQXHLVUHFRJQLVHGZKHQLW LRHIULJ DW I KFQRLDHÀQDQFLDO FRQVROLGDWHG WKH RI SDUW IRUPLQJ 1RWHV YL magazines andrevenuefromsponsorship contracts. RIDGYHUWLVLQJVSDFHLQEXVLQHVVGLUHFWRULHVVSHFLDOLQWHUHVW IURPVDOHRIDGYHUWLVLQJWLPHVSDFHLQHOHFWURQLFPHGLDVDOH described below. displayed inaccordancewithcontractual obligations. aretelecastor media isrecognisedwhenadvertisements DUH FULWHULD UHFRJQLWLRQ DFWLYLW\VSHFLÀF 7KHVH PHW EHHQ recognition foreachoftheGroup’sdifferentactivitieshave to expectultimatecollection,andwhenthecriteriaof itwouldnotbeunreasonable sale orrenderingofservice, services andotheroperatingrevenue. services commission income,incomefromsaleofproductsand are recouped. accumulated losses(notaccountedforbytheGroup) of suchassociatesarenotaccountedforunlessthe SURÀWV 6XEVHTXHQW LQYHVWPHQW RI FRVW WKH RI H[WHQW the shareoflossesisaccountedforonlyto 5HVHUYHVDQG6XUSOXV WKHPLQRULW\RQWKHGDWHRILQYHVWPHQWLVUHÁHFWHGXQGHU subsidiaries overtheamountofequityattributableto consideration receivedfromminorityshareholdersof of movementsinequitysincethatdate.Anyexcess ismadeanditsshare which investmentinasubsidiary attributable tominorityshareholdersatthedateon statements. WKHLQIRUPDWLRQFRQWDLQHGLQWKHFRQVROLGDWHGÀQDQFLDO Materiality forthepurposeisassessedinrelationto considered materialandareaccordinglydulydisclosed. statements, representsnotesinvolvingitemswhichare LVPHDVXUDEOHDWWKHWLPHRI Licensingandmerchandisingrevenue in Subscription revenuesfromprovidinginformation 5HYHQXHIURPVXEVFULSWLRQRIPDJD]LQHVLVUHFRJQLVHGRQ Subscription revenuefromdistributionofchannelsis The Group’ssubscriptionrevenuecomprisesofincome Subscription revenue Sale ofmagazinesincludesrevenuefromcirculation UHODWHG RWKHU DQG PHVVDJLQJ VKRUW PRELOH 5HYHQXH IURP subscription. markets isrecognisedratably over theperiodof connection withtheIndianstockmarkets andcommodities ofmagazinestosubscribers. delivery of thecontract. basisinaccordancewiththeterms recognised onaccrual markets toaregistereduserbase. connection withtheIndianstockmarketsandcommodities in publications andincomefromprovidinginformation from distributionofchannels,incomeGroup’sprint returns. basedonactual ratesandarerevisedasnecessary return arebasedonhistorical Theseestimatedreturns returns. records theseretailsalesupondelivery, netofestimated TheGroup newsstands, whicharesubjecttoreturns. LFOWRRPJ]QV QOGV DHWUWLRXWOHWV UHWDLO WR VDOHV LQFOXGHV PDJD]LQHV RI FLUFXODWLRQ IURP 5HYHQXH PDJD]LQHV RI VXEVFULSWLRQ DQG PDJD]LQHV mobile networkoperators. mobile subscribersandshareofrevenueagreedwiththe bythe arerecognisedbasedonusage ofservices services event is recognised after the completion ofevent. event isrecognisedafter FRPPLVVLRQDQGGLVFRXQWV5HYHQXHIURPVSRQVRUVKLSVRI which themagazinesaredeliveredandaccountednetof revenue frommagazinesisrecognisedintheperiod completion method.Advertising using theproportionate conditionsinwhichcaserevenueisrecognised performance placed onthewebsite,unlessCompanyhastomeet is commencingwhentheadvertisement advertisement, overthe contractualperiodof recognised proportionately 5YQH UP LHVQDG HFDGVQDUH PHUFKDQGLVLQJ DQG OLFHQVLQJ IURP 5HYHQXH recognised as per the terms ofthe arrangement recognised asper theterms Annual Report 2015-16 Annual Report CONSOLIDATED FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 5HYHQXH IURP OLFHQVLQJ RI FRQWHQW LV UHFRJQLVHG LQ Commission income accordance with the licensing agreement or on physical Commission on sale of product and reimbursement of delivery of content, whichever is later. freight and collection expenses is recognized at the time of delivery of products by the courier companies to customer 6DOHRIÀOPULJKWVDQGSURJUDPPHV in accordance with contracted terms with the vendors. 5HYHQXHV IURP WKHDWULFDO GLVWULEXWLRQ RI PRYLHV DUH recognised in accordance with the licensing agreement 5HYHQXHIURPFRQYHQLHQFHIHHRQRQOLQHERRNLQJRIWLFNHW DVWKHÀOPVDUHVFUHHQHGDQGLVVWDWHGDWWKHPLQLPXP LV UHFRJQLVHG ZKHQ WKH WLFNHWV DUH FRQÀUPHG 2XW RI WKH guarantee due and where applicable, the Group’s convenience fee, certain portion of revenue share of the VKDUHRIER[RIÀFHUHFHLSWVLQH[FHVVRIWKHPLQLPXP cinema owners is recognised as an expense. JXDUDQWHH 5HYHQXH IURP VDOH RI ULJKWV VXFK DV satellite, broadcasting, or music rights is recognised in Sale of products and services accordance with the licensing arrangements when the 5HYHQXHIURPSULQWLQJMREVLVUHFRJQLVHGZKHQWKHSULQWHG Group has no remaining obligations to perform and all material is dispatched and is accounted net of taxes. other conditions for sale have been met. 5HYHQXH IURP UHLPEXUVHPHQW RI IUHLJKW DQG FROOHFWLRQ 5HYHQXHIURPVDOHRIWHOHYLVLRQFRQWHQWLVUHFRJQLVHG expenses is recognised at the time of delivery of products on transmission of audio-video content to the customer by the courier companies to customer in accordance with and their acceptance. contracted terms with the vendors. 5HYHQXH IURP PHGLD UHODWHG SURIHVVLRQDO DQG 5HYHQXHIURPVDOHRIVWDOOVDWH[KLELWLRQVRUJDQLVHGE\WKH consultancy services is recognised in accordance with Group is recognised after completion of exhibition. contracts on rendering of services. Rental income Circulation revenue Facility and equipment rental is accounted for on the accrual 5HYHQXH IURP FLUFXODWLRQ RI PDJD]LQHV LQFOXGHV VDOHV WR basis for the period of use of equipment by the customers. UHWDLO RXWOHWV QHZVVWDQGV ZKLFK DUH VXEMHFW WR UHWXUQV The Company records these retail sales upon delivery, net Dividend income of estimated returns. These estimated returns are based on Dividend income is recognised when the right to receive historical return rates and are revised as necessary based dividend is established. on actual returns. Investment income Revenue from events 3URÀW ORVV RQ VDOH RI LQYHVWPHQWV DUH FRPSXWHG RQ WKH 5HYHQXHIURPHYHQWVLVUHFRJQLVHGDIWHUWKHFRPSOHWLRQRI basis of weighted average cost on date of disposal of event. investments. Barter transactions Interest income Barter transactions are recorded at fair value, being the Interest income is recognised on time proportionate basis, value at which similar transactions are executed with other taking into account the amount outstanding and the rate parties. applicable. Program Revenue E. Fixed assets Program revenue is recognised on dispatch of programs to Tangible assets customers in accordance with contractual commitments. Tangible assets are stated at historical cost less accumulated 5HYHQXHIURPOLFHQVLQJDQGPHUFKDQGLVLQJDUHUHFRJQLVHG depreciation and impairment. Cost comprises the purchase as per the terms of the arrangement. price net of any trade discounts and rebates, any import Network18 Media & Investments Limited 7KHXVHIXOOLIHRIÀ[HGDVVHWVKDVEHHQUHDVVHVVHGGXULQJ $TLHEDGRDQ DHDH DLDLHDFVRI FRVW DW FDSLWDOLVHG DUH QDPHV $FTXLUHG EUDQGVGRPDLQ Intangible assets arestatedathistoricalcostless Intangible assets 'HSUHFLDWLRQKDVEHHQSURYLGHGRQ Depreciationandamortisation F. fortheyearended31March2016 information and otherexplanatory 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV Website developmentcoststhatprovide additional II totheCompaniesAct,2013. the yearandcomputeddepreciationasprovidedinSchedule Companies Act,2013. assets aspertheusefullifeprescribedinScheduleIIto accumulated amortisation andimpairment. accumulated amortisation and otherincidentalexpenses. expenditure onmakingtheassetreadyforitsintendeduse recoverable fromthetaxauthorities),anydirectlyattributable duties andothertaxes(otherthanthosesubsequently features orfunctionsareexpensedasincurred. Maintenance expensesorcoststhatdonotresultinnew functions orfeaturestotheGroup’swebsitearecapitalised. acquisition anddisclosedasintangibleassets. iess5years 5years Licenses Useful life rights 0-2years Copyrights andoperating 21years 3-5years %UDQGVWUDGHPDUNV Goodwill 8years Programming cost 30years Computer software News archives Asset life asfollows: overtheirestimateduseful Intangible assetsareamortised Vehicles Building )XUQLWXUHDQGÀ[WXUHV Useful life 5-10years related equipments Overtheleaseperiod technologyand Information Plant andequipment period remaining or years 3 Leaseholdimprovements Leaseholdland Asset 3-10 years 5 years 5-10 years 3-6 years of leasewhicheverisless WKHXVHIXOOLIHRILWVÀ[H G :RUNLQSURJUHVVDQGÀQLVKHGJRRGV /RZHURIFRVWDQGQHW The Groupassessesateachbalancesheetdatewhether Impairmentofassets H. The differencebetweenthecostofinvestmenttoGroup Goodwillonconsolidation G. Net realisablevalueistheestimatedselling priceinthe QHW DQG FRVW RI /RZHU FRQVXPDEOHV DQG 5DZ PDWHULDOV excludingprogrammerights,isvaluedasfollows: Inventory I. Inventory valuation and loss. DFFRUGLQJO\UHYHUVHGLQWKHFRQVROLGDWHGVWDWHPHQWRISURÀW to amaximumofdepreciatedhistoricalcostandthesameis of which is determined usingFirstinout(FIFO)method. of whichisdetermined a weightedaveragebasisexceptincaseofvideotapescost on expected tobesoldatorabovecost.Costisdetermined WKHÀQLVKHGSURGXFWVLQZKLFKWKH\ZLOOEHLQFRUSRUDWHGDUH production ofinventoriesarenotwrittendownbelowcostif realisable value.Materialsandotheritemsheldforuseinthe DQGWKHDVVHWLVUHÁHFWHGDWWKHUHFRYHUDEOHDPRXQWVXEMHFW loss nolongerexists,therecoverableamountisreassessed GDWH VKHHW there isanindicationthatapreviouslyassessedimpairment EDODQFH WKH DW ,I ORVV DQG SURÀW RI VWDWHPHQW lossandisrecognisedintheconsolidated an impairment to itsrecoverableamountandthereductionistreatedas amountisreduced amount,thecarrying than itscarrying of thecashgeneratingunittowhichassetbelongsisless recoverable amountoftheassetor estimates therecoverableamountofasset.Ifsuch may beimpaired.Ifanysuchindicationexists,theGroup there isanyindicationthatanasset(includinggoodwill) RU *RRGZLOO DV &DSLWDO5HVHUYHDVWKHFDVHPD\EH VWDWHPHQWV ÀQDQFLDO FRQVROLGDWHG WKH LQ company asatthedateofacquisitionstakeisrecognised shareinthe equityoftheinvestee and theproportionate in subsidiaries,associatesandjointlycontrolledentities completion and estimated costs necessary tomake thesale. completion andestimated costsnecessary course of business,lessestimatedcosts of ordinary average basis. operatingcapacity.normal onweighted Costisdetermined basedon ofmanufacturingoverheads and aproportion realisable value.Costincludesdirectmaterialsandlabour Annual Report 2015-16 Annual Report CONSOLIDATED FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 Program costs are expensed over the license period or as Serials and programs purchased or produced in house determined in this policy as mentioned hereunder, whichever which are yet to be telecasted are carried at cost by is earlier: (TXDWRU &RVW LQFOXGHV DPRXQW SDLG SD\DEOH WR WKH producers for serials and programs purchased. Cost Cost of shows produced are amortised at 90% in the of programs produced in-house includes remuneration ÀUVW\HDURIWHOHFDVWDQGEDODQFHLVDPRUWLVHGHYHQO\LQ to artists, directors and technicians, location expenses WKH VXEVHTXHQW ÀQDQFLDO \HDU+RZHYHUVKRUW IRUPDW and other production costs. Provision for impairment is shows are expensed in the year of production and made for episodes of serials and programs not telecast telecast. for more than a year. Serials and programs purchased and the costs of serials and programs produced in- Acquired rights of shows are amortised evenly over the house are expensed off based on number of episodes license period. WHOHFDVW GXULQJ WKH SHULRG &RVW RI QHZV FXUUHQW DIIDLUVRQHWLPHHYHQWVDUHIXOO\H[SHQVHGRIIRQÀUVW ,QKRXVH SURGXFHG DQLPDWHG VKRZV PRYLHV DUH telecast. amortised evenly over four years and live action shows are amortised equally over the period of two years. ,QYHQWRULHVIRUÀQDOHSLVRGHDUHVWDWHGDWFRVWZKLFK includes direct episode cost, other direct expenses In case of events where the rights are for more than like, media professional, editing charges, animation one year, 60% of the cost are amortised in the year cost, pilot cost, salary and other expenses of content of telecast and the balance is amortised equally in the and production staff etc. which has been added in the subsequent years. In case the right is for a single year, episode cost on pro-rata basis. The stock of episodes the entire amount is expensed in the year of telecast. written off over its useful life of these episodes, which is estimated at three years. Cost of cable and satellite movie rights acquired are amortised on the exploitation of such rights based on Channel packaging are stated at cost and written the management estimates of future revenue potential. off over its useful life of these packaging, which is In case of equator the prime time movies are amortised estimated at three years. DWLQÀUVWDLULQJDQGEDODQFHRYHUOLFHQFHSHULRG J. Investments ,QFDVHRIÀOPSURGXFWLRQDQGGLVWULEXWLRQWKH*URXS &XUUHQWLQYHVWPHQWVDUHFDUULHGDWORZHURIFRVWDQGTXRWHG DPRUWLVHV ÀOP FRVW XVLQJ WKH LQGLYLGXDOÀOPIRUHFDVW fair value. Long term investments are stated at cost. Provision method. Under this method, such costs are amortised for diminution in the value of long term investments is made IRU HDFK ÀOP LQ WKH UDWLR WKDW FXUUHQW SHULRG UHYHQXH only if such a decline is other than temporary. IRU VXFK ÀOPV EHDUV WR PDQDJHPHQW·V HVWLPDWH RI remaining unrecognised ultimate revenue as at the . (PSOR\HHEHQHÀWV EHJLQQLQJ RI WKH FXUUHQW ÀVFDO \HDU 0DQDJHPHQW Provident fund regularly reviews and revises, where necessary, its The Employees Provident Fund scheme of entities within WRWDO HVWLPDWHV RQ D ÀOPE\ÀOP EDVLV ZKLFK PD\ WKH *URXS LV D GHÀQHG FRQWULEXWLRQ SODQ 7KH *URXS·V UHVXOWLQDFKDQJHLQWKHUDWHRIDPRUWLVDWLRQDQGRUD contribution to the Employees’ Provident Fund is charged write down of the inventory to recoverable amount. WRWKHFRQVROLGDWHGVWDWHPHQWRISURÀWDQGORVVGXULQJWKH period in which the employee renders the related service. )HZ *URXS HQWLWLHV HYDOXDWH WKH UHDOLVDEOH YDOXH DQG or revenue potential of inventory on an ongoing basis Gratuity and appropriate write down is made in cases where 7KH*URXSSURYLGHVIRUJUDWXLW\DGHÀQHGEHQHÀWSODQ WKH accelerated write down is warranted. “Gratuity Plan”) covering eligible employees. Network18 Media & Investments Limited 5HYHQXHVFRVWVDQGH[SHQVHVDUHWUDQVODWHGXVLQJZHLJKWHG ,GD5SH V KUSULJ XUQ\ RWH *URXS WKH IRU FXUUHQF\ UHSRUWLQJ WKH LV 5XSHH ,QGLDQ tooverseasentities Relating Foreign currencytransactions L. GHÀQHG VXFK XQGHU REOLJDWLRQ WKH RI YDOXH SUHVHQW 7KH fortheyearended31March2016 information and otherexplanatory 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV Voluntary retirementcompensationisfullychargedoffinthe 6KRUWWHUPHPSOR\HHEHQHÀWVH[SHFWHGWREHSDLGRUSD\DEOH 6KRUWWHUPHPSOR\HHEHQHÀWV DEVHQFHV FRPSHQVDWHG WHUP ORQJ FRPSULVLQJ %HQHÀWV Compensated absences entitieswithintheGroupmakecontributionstofunds Certain average exchange rate during the reporting period.The average exchange rateduringthereporting using theexchangerateasatbalance sheetdate. OLDELOLWLHV DQG DVVHWV andsurplus), (excluding sharecapitalandopening reserves IRU SHUIRUPHG LV 5XSHH ,QGLDQ LQWR oftheGroup. The translationoflocalcurrencies currency overseas subsidiariesaredifferentfromthereporting non-integral However, ofcertain currencies reporting LPPHGLDWHO\LQWKHFRQVROLGDWHGVWDWHPHQWRISURÀWDQGORVV the periodend.Actuarialgainsandlossesarerecognised Unit CreditMethod,onthebasisofanactuarialvaluationat IRU OLDELOLW\ 7KH EHQHÀWV usingtheProjected compensated absencesisdetermined HPSOR\HH WHUP ORQJ RWKHU DUH WKHSUHVHQWYDOXHRIWKHHVWLPDWHGIXWXUHFDVKÁRZV7KH WR VHSDUDWHO\ XQLW HDFK PHDVXUHV DQG HQWLWOHPHQW EHQHÀW asgivingrisetoadditionalunitofemployee period ofservice the projectedunitcreditmethod,whichrecogniseseach year of severance of service oftheemployee. year ofseveranceservice undiscounted basis. renderedisrecognisedon in exchangefortheservices LQVXUDQFH VDLG WKH E\ QRWLÀHG companies. DPRXQW WKH RQ EDVHG administered andmanagedbytheinsurancecompanies VWDWHPHQWRISURÀWDQGORVV JDLQV $FWXDULDO GDWH losses arerecognisedimmediatelyintheconsolidated VKHHW EDODQFH WKH DW DV VHFXULWLHV obligation isbasedonthemarketyieldsgovernment thepresentvalueof discount rateusedfordetermining EXLOGXSWKHÀQDOREOLJDWLRQ7KHREOLJDWLRQLVPHDVXUHGDW EHQHÀWSODQLVGHWHUPLQHGEDVHGRQDFWXDULDOYDOXDWLRQXVLQJ Transactions areaccounted foratthe inforeigncurrency toIndianentities Relating taxchargeorcredit isrecognisedontiming Deferred tax.Current taxanddeferred Income- taxcomprisescurrent O. Income-tax onthe Accounting valueofstock optionsisdetermined Employeestockoptions N. coststhataredirectlyattributabletoacquisition, Borrowing M. Borrowing costs costsarerecognisedasanexpenseinthe Other borrowing RYUHLW,GD5SHDWH HUHG H[FKDQJH \HDUHQG WKH DW 5XSHHV ,QGLDQ LQWR FRQYHUWHG are itemsdenominated inforeigncurrency All monetary exchange rateprevailingonthedateoftransaction. investment. at theexchangerateprevailingondateofmaking and surplus.Investmentsinforeignentitiesarerecorded underreserves translationreserve as foreigncurrency FRQVROLGDWHGVWDWHPHQWRISURÀWDQGORVV and onsettlementofthetransactionsarerecognisedin rate. Theexchangedifferencesarisingonsuchconversion UHVXOWDQWFXUUHQF\WUDQVODWLRQH[FKDQJH capable of reversal, subject to consideration of prudence, capable ofreversal, subjecttoconsiderationofprudence, and accountingincome thatoriginateinoneperiod andare differences beingthedifference between taxableincome Income Tax Act,1961. inaccordancewith theprovisionsof tax isdetermined AccountantsofIndia(“ICAI”). Chartered Note 18“ShareBasedPayments” issuedbytheInstituteof %DVHG(PSOR\HH%HQHÀWV 5HJXODWLRQVDQG*XLGDQFH over thevestingperiodinaccordancewithSEBI(Share employee compensation”onastraight-linebasis “Deferred as Scheme” oftheCompany, andisbeingamortised of theoptionsgrantedunder“EmployeesStockOption market priceonthedateofgrantoverexercise basis of‘intrinsicvalue’representingtheexcess SUREDEOHWKDWWKH\ZLOOUHVXOWLQIXWXUHHFRQRPLFEHQHÀWVWR ofthecostthatassetwhenitis capitalised aspart assetare orproduction ofaqualifying construction period inwhichtheyareincurred. the Groupandcostscanbemeasuredreliably. Annual Report 2015-16 Annual Report JDLQORVVLVFDUULHG CONSOLIDATED FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 in one or more subsequent periods. In situation, where the R. Leases company has unabsorbed depreciation or carry forward of i. Operating lease losses, deferred tax assets are recognised only if there is Lease arrangements where the risks and rewards virtual certainty supported by convincing evidence that they incidental to ownership of an asset substantially vest FDQEHUHDOLVHGDJDLQVWIXWXUHWD[DEOHSURÀWV'HIHUUHGWD[ with the lessor are recognised as operating leases. assets and liabilities are measured using the tax rates and Lease rentals under operating leases are recognised tax laws that have been enacted or substantively enacted by LQWKHFRQVROLGDWHGVWDWHPHQWRISURÀWDQGORVVRQD the balance sheet date. straight-line basis over the term of lease. Minimum alternate tax (MAT) paid in accordance with ii. Finance lease Income Tax Act, 1961, which gives rise to future economic Leases under which the Group assumes substantially EHQHÀWLQWKHIRUPRIDGMXVWPHQWIURPLQFRPHWD[OLDELOLW\LV DOOWKHULVNVDQGUHZDUGVRIRZQHUVKLSDUHFODVVLÀHGDV recognised as an adjustment to current tax when it is certain ÀQDQFHOHDVHV7KHORZHURIIDLUYDOXHRIDVVHWVDQG that the Group will be able to set off the same. present value of minimum lease rentals is capitalised DVÀ[HGDVVHWVZLWKWKHFRUUHVSRQGLQJDPRXQWVKRZQ 7D[SURYLVLRQVIRURYHUVHDVVXEVLGLDULHVMRLQWO\FRQWUROOHG as lease liability. The principal component in the lease entities are determined in accordance with the tax laws of rentals is adjusted against the lease liability and the their respective country of incorporation. interest component is charged to the consolidated VWDWHPHQWRISURÀWDQGORVV P. Website development costs Costs incurred in the planning or conceptual development S. Earnings per share of websites are expensed off as incurred. Once the planning The Group reports basic and diluted earnings per share or conceptual development of a website has been achieved, in accordance with Accounting Standard 20 ‘Earnings and the project has reached the application development per Share’. Basic earnings per share are calculated by stage, the Group capitalises all costs related to web site GLYLGLQJWKHQHWSURÀWRUORVVIRUWKHSHULRGDWWULEXWDEOHWR application and infrastructure development including costs equity shareholders by the weighted average number of relating to the graphics and content development stages. equity shares outstanding during the period. The weighted Training and routine maintenance costs are expensed off as average number of equity shares outstanding during the incurred. period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse share split Q. Provisions and contingencies (consolidation of shares) that have changed the number of Provision recognised in the accounts when there is a present equity shares outstanding, without a corresponding change obligation as a result of past event(s) and it is probable in resources. WKDW DQ RXWÁRZ RI UHVRXUFHV ZLOO EH UHTXLUHG WR VHWWOH WKH obligation and a reliable estimate can be made. Provisions For the purpose of calculating diluted earnings per share, are not discounted to their present value and are determined WKH QHW SURÀW RU ORVV IRU WKH SHULRG DWWULEXWDEOH WR HTXLW\ based on the best estimate required to settle the obligation shareholders and the weighted average number of shares at the reporting date. These estimates are reviewed at outstanding during the period are adjusted for the effects of HDFKUHSRUWLQJGDWHDQGDGMXVWHGWRUHÁHFWWKHFXUUHQWEHVW all dilutive potential equity shares. estimates. T. Cash and cash equivalents Contingent liabilities are disclosed unless the possibility of &DVKDQGFDVKHTXLYDOHQWVIRUWKHSXUSRVHVRIFDVKÁRZ RXWÁRZRIUHVRXUFHVLVUHPRWH statement comprise cash at bank, cash on hand and short- term investments with an original maturity of three months Contingent assets are neither recognised nor disclosed in or less. WKHÀQDQFLDOVWDWHPHQWV Network18 Media & Investments Limited ,GHQWLÀFDWLRQRI6HJPHQWV L U. Segment information fortheyearended31March2016 information and otherexplanatory 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV in The Grouppreparesitssegmentinformation iii. Segment Inter segmentrevenuehavebeenaccountedfor policies ii. Intersegment transfers The Group’s operating businesses are organised The accountingpoliciesadoptedforsegmentreporting 1,55,00,000 (previousyear1,55,00,000)preferencesharesof Total issued,subscribedandfullypaid-upsharecapital SUHYLRXV\HDU HTXLW\VKDUHVRI Issued, subscribedandfullypaid-upcapital 1,05,00,000 (previousyear1,05,00,000)preferencesharesof 5,00,00,00,000 (previousyear5,00,00,00,000)equitysharesof Authorised sharecapital 3 Sharecapital 11,00,000 (previousyear11,00,000)preferencesharesof SUHSDUDWLRQDQGSUHVHQWLQJWKHÀQDQFLDOVWDWHPHQWVRI withtheaccountingpoliciesadoptedfor conformity segments whichisprimarilymarketled. based onthetransactionpriceagreedtobetween operate. areas inwhichmajoroperatingdivisionsoftheGroup analysis ofgeographicalsegmentsisbasedonthe differentmarkets.The different productsandserves representing astrategicbusinessunitthatoffers provided,witheachsegment products andservices and managedseparatelyaccordingtothenatureof additional policiesforsegmentreporting: are inlinewiththoseoftheGroupfollowing the Groupasawhole. ` 100each ` ` 10each 200each ` ` 5eachfullypaidup 5each ) Assets andliabilities,whichrelatetothegroup d) 5HYHQXHVDQGH[SHQVHVZKLFKUHODWHWRWKHJURXS F WR LGHQWLÀHG EHHQ KDYH H[SHQVHV 5HYHQXHV DQG E Inter segmentrevenueshavebeenaccountedfor a) corporate assetsandliabilitiesrespectively. a reasonablebasis,areshownasunallocated as awholeandarenotallocabletosegmentson expenses. ÀQDQFHFKDUJHVDQGRWKHUXQDOORFDEOHFRUSRUDWH corporate expensealsoincludestaxesand “Unallocated corporateexpenses”.Unallocated a reasonablebasis,havebeenincludedunder as awholeandarenotallocabletosegmentson operating activitiesofthesegment. segments onthebasisoftheirrelationshipto segment. segments atestimatedcostofthetransferor based onthetransactionpriceagreedtobetween 31 March2016 25,0.0 2,50,000.00 2,50,000.00 5,4.3 52,342.43 52,347.43 2,0.0 21,000.00 21,000.00 1500 1,550.00 1,550.00 1100 1,100.00 1,100.00 As at Annual Report 2015-16 Annual Report CONSOLIDATED 31 March2015 ` inlakhs As at FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 a. Reconciliation of the equity shares outstanding at the beginning and end of the current year and previous year. Year ended 31 March 2016 Year ended 31 March 2015 Particulars Number of Amount Number of Amount shares (` in lakhs) shares (` in lakhs) Equity shares at the beginning of the year 52,333.33 Add: Share issued on exercise of employee stock options 1,00,000 5.00 9.10 Equity shares at the end of the year b. Description of the rights, preferences and restrictions attached to equity shares The Company has only one class of equity shares having a face value of ` 5 per share. All the existing equity shares rank pari passu in all respects including but not limited to entitlement for dividend, bonus issue and rights issue. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. F $JJUHJDWHQXPEHURIERQXVVKDUHVLVVXHGVKDUHLVVXHGSXUVXDQWWRDFRQWUDFWZLWKRXWSD\PHQWEHLQJUHFHLYHGLQFDVKDQGVKDUHV ERXJKWEDFNGXULQJWKHSHULRGRIÀYH\HDUVLPPHGLDWHO\SUHFHGLQJ0DUFK Financial year (aggregate no. of shares) Particulars 2015-16 2014-15 2013-14 2012-13 2011-12 Equity shares : Allotted as fully paid up under scheme of arrangement - - - 7KHUHDUHQRERQXVVKDUHVLVVXHGDQGVKDUHVERXJKWEDFNGXULQJWKHSHULRGRIÀYH\HDUVLPPHGLDWHO\SUHFHGLQJ0DUFK d. Details of shareholders holding more than 5% shares in the Company As at 31 March 2016 As at 31 March 2015 Name of shareholder No. of shares % of holding No. of shares % of holding Equity shares of ` 5 each fully paid up 55%0HGLDVRIW3ULYDWH/LPLWHG 10,85,15,123 10.36% 10,85,15,123 5%0HGLDVRIW3ULYDWH/LPLWHG 12.18% 12.19% 5%0HGLD+ROGLQJV3ULYDWH/LPLWHG 12.18% 12.18% Watermark Infratech Private Limited 12.18% 12.18% Colorful Media Private Limited 12.18% 12.18% Adventure Marketing Private Limited 12.18% 12.18% $VSHUUHFRUGVRIWKH&RPSDQ\LQFOXGLQJLWVUHJLVWHURIVKDUHKROGHUVPHPEHUVDQGRWKHUGHFODUDWLRQUHFHLYHGIURPVKDUHKROGHUVUHJDUGLQJ EHQHÀFLDOLQWHUHVWWKHDERYHVKDUHKROGLQJUHSUHVHQWVERWKOHJDODQGEHQHÀFLDORZQHUVKLSRIWKHVKDUHV e. Shares reserved for issue under options and other commitments As on 31 March 2016, 650 (previous year 1,01,300) Employees Stock Options were outstanding under the Employee Stock Option Plans of the Company. Each option would entitle the holder thereof to subscribe to one equity share of ` 5 each in the Company. Network18 Media & Investments Limited and other explanatory information fortheyearended31March2016 information and otherexplanatory 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV 4 Reserves andsurplus Reserves 4 1HWGHÀFLWLQWKHFRQVROLGDWHGVWDWHPHQWRISURÀWDQGORVV $GG $GMXVWPHQWRQGLVSRVDORIVXEVLGLDU\ UHIHUQRWH Balanceattheendofyear Total andsurplus reserves Add:Depreciationadjustment(refernote12) Add:Proposed preferencedividend Add:Lossfortheyear 'HÀFLWDWWKHEHJLQQLQJRIWKH\HDU g. Balanceattheendofyear f. $GGLWLRQ UHGXFWLRQ GXULQJWKH\HDU QHW Balanceatthebeginningofyear Balanceattheendofyear e. fromemployeestockoptionreserve Add:Amounttransferred Balanceatthebeginningofyear d. Grossemployeestockcompensationforoptions granted Employeestockoptionsoutstanding Balanceattheendofyear c. Add:Amountreceivedpursuanttoexerciseofemployee stockoptions Balanceatthebeginningofyear b. Additionduringtheperiod Balanceatthebeginningofyear Balanceattheendofyear Less:Transferred tosecuritiespremiumonexercise of stockoptions employeestockcompensation Less:Deferred Less:Transferred togeneralreserve /HVV :ULWWHQEDFNWRWKHFRQVROLGDWHGVWDWHPHQWRISURÀWDQG a. Capital reserve 'HÀFLWLQWKHFRQVROLGDWHGVWDWHPHQWRISURÀWDQGORVV onconsolidationofsubsidiaries Capital reserve Foreign currencytranslationreserve General reserve Securities premiumaccount Interest) ORVV QHWRIVKDUHRIPLQRULW\ 31 March2016 (2,21,098.91) 10,5.4 1,09,664.36 1,06,952.74 31,3.6 3,10,351.48 3,10,437.26 2720 1,057.36 2,762.01 1914 1,951.45 1,951.45 5300 4,277.88 5,320.02 (.1 (0.01) (0.01) 58.88 06 1,817.65 0.66 As at Annual Report 2015-16 Annual Report - - - CONSOLIDATED 31 March2015 (2,21,098.91) (1,05,990.88) ` 2,022.69 inlakhs (55.92) 12.98 As at - - FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 ` in lakhs As at As at 31 March 2016 31 March 2015 5 Long-term borrowings Secured Term loans - from banks 9,000.00 Vehicle loans - from banks 166.52 - from others 9,168.79 14,505.15 Unsecured 10,00,000 (previous year 10,00,000) Zero Coupon Compulsorily Convertible Debentures 1,000.00 1,000.00 (ZCCCD) 7KHWHUPRIGHEHQWXUHVKDOOEHDSHULRGRI\HDUVIURP 2FWREHUZKLFKPD\EHH[WHQGHGZLWK the written approval of all the debenture holders along with the approvals of the Board of Directors and shareholders of IndiaCast Media Distribution Private Limited (“IC Media”) (a jointly controlled entity). The debentures shall be converted into equity shares of IC Media in 1:1 ratio. 1 (previous year 1) 0.01% Optionally Covertible Debentures (OCD) 0.00 0.00 7KHWHQXUHRI2&'VKDOOEHIRUDSHULRGRI\HDUVIURPWKHGDWHRILWVDOORWPHQWLH $SULO OCD may be converted into 1 equity share of IBN Lokmat News Private Limited (a jointly controlled HQWLW\ ,I 2&' LV QRW FRQYHUWHG LQWR HTXLW\ VKDUHV DW DQ\ WLPH ZLWKLQ \HDUV IURP WKH GDWH RI LVVXDQFHDQGDOORWPHQWWKHQDWWKHHQGRI\HDUV2&'VKDOOEHUHGHHPHGDWDSULFHRI` 200 per OCD [` 50]. 1,000.00 1,000.00 10,168.79 15,505.15 Security details for borrowings covered under note no. 5 and note no. 10 is as follows: I. Loans under ‘Long-term borrowings’ II. Loans under ‘Other current liabilities’ 3,186.50 12,355.29 18,422.88 i 7HUP ORDQ IURP D EDQN WDNHQ E\ D MRLQWO\ FRQWUROOHG HQWLW\ FDUULHV DQ LQWHUHVW UDWH RI SD DQGLVUHSD\DEOHLQTXDUWHUO\VWHSSHGXSLQVWDOOPHQWVIURPWKHGDWHRIÀUVWGLVEXUVHPHQWLH 0DUFK7KHWHUPORDQLVVHFXUHGE\ÀUVWSDULSDVVXFKDUJHRYHULWVÀ[HGDVVHWVDQGFXUUHQW assets. ii Term loan from a bank taken by a subsidiary company carries an interest rate of 1.25% above the 522.91 1,213.03 EDQNEDVHUDWHDQGLVVHFXUHGE\K\SRWKHFDWLRQRQLWVPRYDEOHÀ[HGDVVHWVDQGHQWLUHFXUUHQWDVVHWV (including loan and advances) and further by way of corporate guarantee by the Company and is UHSD\DEOHLQVWUXFWXUHGTXDUWHUO\LQVWDOOPHQWVIURP-XQH iii Term loan from others taken by a subsidiary company carries an interest rate of 13.50% p.a. and is - 986.00 UHSD\DEOHLQHTXDOTXDUWHUO\LQVWDOOPHQWV7KLVLVVHFXUHGE\ÀUVWSDULSDVVXFKDUJHRQPRYDEOH À[HGDVVHWVRIWKHH[LVWLQJ&1%&QHZVFKDQQHOVDQGZDVFROODWHUDOO\VHFXUHGE\SOHGJHRIVKDUHV XSWR0DUFKE\WKHSURPRWHUVJURXSHQWLWLHVSHUVRQDOJXDUDQWHHRIWKH'LUHFWRURIWKH subsidiary and corporate guarantee of the Company. iv Term loan from a bank taken by Stargaze Entertainment Private Limited was secured by pari passu charge - RQLWVHQWLUHÀ[HGDVVHWVDQGFXUUHQWDVVHWVSUHVHQWDQGIXWXUHUHSD\DEOHLQÀQDQFLDO\HDU v Term loan from bank taken by Prism TV Private Limited carries an interest rate of 11.25% p.a for term 6,000.00 8,000.00 loan of `ODNKVDQGLQWHUHVW#SDIRUWHUPORDQRI` 2,000 lakhs and is repayable DIWHUDPRUDWRULXPRIPRQWKVLQHTXDOTXDUWHUO\LQVWDOOPHQWVIURP$SULO7KLVLV VHFXUHGE\H[FOXVLYHFKDUJHRQLWVFXUUHQWDVVHWVDQGPRYHDEOHÀ[HGDVVHWVRI3ULVP793ULYDWH /LPLWHGIRURSHUDWLQJPDUNHWLQJH[SHQVHVFRQWHQWGHYHORSPHQWHWF vi 9HKLFOHORDQVDUHVHFXUHGE\WKHK\SRWKHFDWLRQRIWKHYHKLFOHVÀQDQFHGWKHUHIURPDQGORDQVDUH 239.85 payable in equal monthly installments as per the terms of underlying agreements. 12,355.29 18,422.88 150 Network18 Media & Investments Limited and other explanatory information fortheyearended31March2016 information and otherexplanatory 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV i Cash credit including working capital demand loans availed by a subsidiary companyarerepayable creditincludingworkingcapitaldemandloansavailedbyasubsidiary Cash i Security detailsforborrowingscoveredunderNoteno.8isasfollows: 8 Short-term borrowings Long-term provisions 7 Otherlong-termliabilities 6 ii Cash credit including working capital demand loans availed by a subsidiary companyarerepayable Cashcreditincludingworking capitaldemandloansavailedbyasubsidiary ii vCashcreditincluding workingcapitaldemandloansavailedbyajointlycontrolled entityarerepayable iv issecuredagainstsecondparipassu chargeonallexistingandfuturemoveable Theoverdraft iii Commercial papers Proposed preferencedividend RNQDLDHDGODRHGDWIFOWH Total Loan frombanks(repayableondemand) - from - from others Commercial papers(repayableonmaturity) banks Unsecured - from Term loans banks buyers’credit Deferred :RUNLQJFDSLWDOGHPDQGORDQRYHUGUDIWIDFLOLWLHV Cash credit 3URYLVLRQIRUHPSOR\HHEHQHÀWV Other payables Advance fromcustomers RQGHPDQGDQGDUHVHFXUHGDJDLQVWÀUVWSDULSDVVXK\SRWKHFDWLRQ Provision forexpenses Secured RQGHPDQGDQGDUHVHFXUHGDJDLQVWÀUVWSDULSDVVXK\SRWKHFDWLRQ &11,%1DQG,%1 channels,namely, chargeonsubsidiary’s company(previousyear: assetsofthesubsidiary current jointly controlledentity. RQGHPDQGDQGDUHVHFXUHGE\ÀUVWSDULSDVVXFKDUJHRYHUÀ[HGD company. assetsofthesubsidiary assets andcurrent CNBC TV18andAwaaz. channels,namely, chargeonsubsidiary’s company(previousyear: assetsofsubsidiary current FKDUJHRQDOOH[LVWLQJDQGIXWXUH FKDUJHRQDOOH[LVWLQJDQGIXWXUH VVHWVDQGFXUUHQWDVVHWVRIWKH 31 March2016 31 March2016 31 March2016 5,9.9 45,456.57 54,094.09 9,2.8 80,684.59 35,228.02 96,728.78 42,634.69 2,0.0 32,500.00 22,500.00 4260 3,616.92 4,276.02 226 113.91 222.62 222.62 As at As at As at Annual Report 2015-16 Annual Report - - 0.12 - - 29.32 - - CONSOLIDATED 31 March2015 31 March2015 31 March2015 ` ` ` 2,500.00 3,513.02 1,900.00 inlakhs inlakhs inlakhs 228.02 As at As at As at 151 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 ` in lakhs As at As at 31 March 2016 31 March 2015 v Cash credit facility including working capital demand loans availed by Prism TV Private Limited are - 1,000.00 UHSD\DEOHRQGHPDQGDQGDUHVHFXUHGE\H[FOXVLYHFKDUJHRQLWVFXUUHQWDVVHWVDQGPRYDEOHÀ[HG assets, 25% margin on stocks and receivable upto 120 days of Prism TV Private Limited. vi Working capital borrowings from bank (including deferred buyers credit) are secured by exclusive 6,620.02 charge on the current and movable assets including loans and advances of respective subsidiary company and corporate guarantee of the Company. vii The cash credit including working capital demand loan repayable on demand within 12 months and - is secured by 25% margin on inventory and book debts of subsidiary company. viii %DQNRYHUGUDIWLVVHFXUHGE\ÀUVWSDULSDVVXFKDUJHRQDOOWKHFXUUHQWDVVHWVDQGPRYDEOHÀ[HG assets of the Company (both present & future). ix Term loan from Bank taken by Stargaze Entertainment Private Limited was secured against lien of - LWVÀ[HGGHSRVLW x &DVKFUHGLWIDFLOLW\DYDLOHGE\DVXEVLGLDU\FRPSDQ\DUHVHFXUHGE\ÀUVWSDULSDVVXFKDUJHRYHUÀ[HG 200.00 assets and current assets of the respective subsidiary company. xi &RPPHUFLDOSDSHUVDUHVHFXUHGE\ÀUVWSDULSDVVXFKDUJHRYHUÀ[HGDVVHWVDQGFXUUHQWDVVHWVRI - the jointly controlled entity. 54,094.09 45,456.57 ` in lakhs As at As at 31 March 2016 31 March 2015 9 Trade payables 'XHWRPLFURDQGVPDOOHQWHUSULVHV UHIHUQRWH 168.18 23.06 Due to others 87,669.34 73,315.60 10 Other current liabilities Current maturities of long- term borrowings (refer note 5) Term loans - secured - from banks 3,130.86 - from others - 986.00 Vehicles loans Unearned revenue 3,308.99 Interest accrued but not due on borrowings Advance from customers Unpaid dividend 6.85 13.01 Amount collected on behalf of vendors 8QSDLG8QFODLPHGPDWXUHGGHSRVLWVDQGLQWHUHVWDFFUXHGWKHUHRQ 192.33 Employee related payable Statutory dues payable Book overdraft 855.85 3,199.30 Payable for capital goods 900.11 Security deposits Advance sales consideration - 2,913.30 Share application money pending allotment - 3,918.00 Other payables 37,906.94 40,129.79 152 Network18 Media & Investments Limited 1HWZRUN+ROGLQJVKDVDOVRDJUHHGWRLQGHPQLI\5RSWRQDODJDL 'XULQJWKHSUHYLRXV\HDUVEDVHGRQWKHDVVHVVPHQWRIHVWLPDWH 'UQWH HU QH0UK 5SRD/PWG&\SUXV /LPLWHG 5RSWRQDO 0DUFK HQGHG \HDU 'XULQJ WKH fortheyearended31March2016 information and otherexplanatory 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV 11 Short-term 11 Short-term provisions RIWKHÀOPOLEUDU\DVSHUWKH7,)&·VWKHUHLQPHQWLRQHGDFFRXQWV WKHSHULRGIURPWKHGDWHRQZKLFKWKHDIRUHPHQWLRQHGSXEOLFRII agreed intheagreement,indemnityshallbeprovidedbyCompany. theindemnityoblig providedthatifNetwork18Holdingsdoesnotundertake shares inTIFC.Theaforementionedagreementfurther LQUHVSHFWRIFHUWDLQZLWKKROGLQJWD[UHFRYHULHVVWDWHGLQ7,)& as DJUHHGWRLQGHPQLI\5RSWRQDODJDLQVWWKHDPRXQWLIDQ\E\ZKL LQ7,)&DFFHSWHGWKHSXEOLFRIIHU)XUWKHUSXUVXDQWWRDQDJUH Companyanditssubsidiary,(‘TIFC’).The Network18HoldingsLimited,Mauritius(“Network18Holdings”),intheircapacityassha Viacom18 MediaPrivate LimitedmadeapublicofferforpurchaseofentireissuedcapitalTheIndianFilmCompanyLimited,Gu year. H[SHULHQFHRIUHWXUQV,WLVH[SHFWHGWKDWPRVWRIWKLVSURYLVL onproductssoldduringtheyearbasedpast A provisionisrecognisedforexpectedreturns Closing balance Proposed preferencedividend Provision fortax(netofadvancetax) Provision forindemnity(refernotebbelow) %DODQFHDVDWWKHEHJLQQLQJHQGRIWKH\HDU Note b-Provisionforindemnity Amount utilisedduringtheyear Addition duringtheyear Opening balance Note a-Provisionforsalesreturns Provision (refernoteabelow) forsalesreturns 3URYLVLRQIRUHPSOR\HHEHQHÀWV ` 10,863.10lakhs. RQZLOOEHXWLOLVHGLQWKHQH[WÀQDQFLDO ·VÀQDQFLDOVWDWHPHQWVDQGRWKHUWD[HVUHODWLQJWRWKHVDOHRI HPHQWEHWZHHQ5RSWRQDODQG1HWZRUN+ROGLQJV1HWZRUN+ROGLQ GFDVKÁRZRIWKHLQGHPQLÀHGDVVHWVWKH&RPSDQ\KDVHVWLPDWHG IRUWKH\HDUHQGHG0DUFK HUEHFRPHVXQFRQGLWLRQDOXSWR-XO\LVOHVVWKDQWKHQH FKWKHQHWFDVKJHQHUDWHGE\7,)&IURPLWVH[LVWLQJÀOPOLEUDU\ QVWFHUWDLQ,QGLDQWD[OLDELOLWLHVWKDWPD\SRWHQWLDOO\DULVHL ¶RWQO VELLURWH RSQ·MLW\ FRQWUROOHG MRLQWO\ &RPSDQ\·V WKH RI VXEVLGLDU\ D ¶5RSWRQDO· 31 March2016 1,4.4 14,025.80 14,144.34 10,863.10 1,6.0 10,863.10 10,863.10 (169.86) 8.2 43.78 80.62 80.62 As at 01 - 0.15 Annual Report 2015-16 Annual Report 1HWZRUN+ROGLQJV Q7,)&RU5RSWRQDO CONSOLIDATED 31 March2015 LQUHVSHFWRI WDVVHWYDOXH 10,863.10 WKHOLDELOLW\ ` 2,395.82 reholders inlakhs JVKDV ernsey ernsey ations HQWLW\ As at 153 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 in lakhs ` 152.98 Balance as at 31 March 2015 - - OHDQGLQWDQJLEOH ODNKV Net block ` QDQGDPRUWLVDWLRQ 9.69 9.88 261.89 1,160.83 1,331.90 6,052.88 3,326.19 Balance as at 31 March 2016 - as at 692.03 8,099.56 2,960.01 31 March 2016 Closing balance ODNKVKDVEHHQDGMXVWHGZLWKWKH ` (Refer (0.01) GLVSRVDO (93.66) (380.12) adjustments Reversal on note 1 and 3) (1,205.35) - 93.50 - pursuant to Adjustment subsidiary to of subsidiary (Refer note 2) entity and sale conversion from jointly controlled - - - UWLVDWLRQIRUWKH\HDUHQGHG0DUFKLVKLJKHUE\ GLQ6FKHGXOH,,DQDPRXQWRI the year $FFXPXODWHGGHSUHFLDWLRQDPRUWLVDWLRQ UPHQW DFFHOHUDWHGGHSUHFLDWLRQ LQWKHYDOXHRIFHUWDLQWDQJLE expense for ear. Amortisation 'HSUHFLDWLRQ KHXVHIXOOLYHVRILWVÀ[HGDVVHWVDQGKDVFRPSXWHGGHSUHFLDWLR f Board of Directors ceased to be a Subsidiary with effect from 1 August 2015, and - 36.68 19.29 - - 1 April 2015 1,361.16 1,335.85 9,591.51 8,190.26 1,051.32 (1,059.28) Balance as at - as at 31 March 2016 Closing balance (1.08) (58.39) adjustment 'HOHWLRQV (105.22) (333.15) 2,218.12 - 93.50 - - 602.13 (8.13) (1,219.29) pursuant to subsidiary to of subsidiary (Refer note 2) entity and sale Gross block conversion from jointly controlled GLQ6FKHGXOH,,WRWKH$FW&RQVHTXHQWO\GHSUHFLDWLRQDQGDPR QJDPRXQW)XUWKHUEDVHGRQWKHWUDQVLWLRQDOSURYLVLRQSURYLGH - - - - - KHÀ[HGDVVHWVWKH*URXSKDVDFFRXQWHGIRUREVROHVFHQFHLPSDL $FW· WKH*URXSKDVHIIHFWLYHIURP$SULOUHDVVHVVHGW Additions Adjustment 5,090.99 2,156.88 1 April 2015 2,583.03 Balance as at ODNKV ` ZLWKUHIHUHQFHWRWKHXVHIXOOLYHVRIÀ[HGDVVHWVDVUHFRPPHQGH À[HGDVVHWVDUHORZHUDQGQHWORVVLVKLJKHUE\WKHFRUUHVSRQGL assets to the extent of opening reserves during the year ended 31 March 2015. converted to a jointly controlled entity and subsidiary Stargaze Entertainment Limited has been sold off during the y Private %UDQGVWUDGHPDUNV Previous year 48,092.74 2,867.27 - (32,999.98) 17,960.03 33,913.79 2,441.15 - (22,672.00) 13,682.94 4,277.09 Goodwill Leasehold land 19.13 - - - 19.13 9.25 0.19 - - Total 17,960.03 3,839.34 (308.61) (2,330.24) 19,160.52 13,682.94 2,800.19 (188.91) (2,315.23) 13,978.99 5,181.53 4,277.09 Previous year 71,966.46 8,752.51 - (1,428.48) 79,290.49 46,967.17 5,077.64 - 7,349.11 59,393.92 19,896.57 Licenses Freehold land Freehold Computer software Programming cost Programming 2,693.06 Total 79,290.49 14,204.54 (8,967.93) (963.16) 83,563.94 59,393.92 6,170.40 (5,992.39) (754.08) 58,817.85 24,746.09 19,896.57 Copyrights and operating rights Information technology related equipments )XUQLWXUHDQGÀ[WXUHV Vehicles Tangible assets Tangible Buildings Intangible assets News archives Particular Particular Leasehold improvements Plant and equipment 50,122.51 12. Fixed assets Note: 3XUVXDQWWRWKHHQDFWPHQWRIWKH&RPSDQLHV$FW WKH¶ 'XULQJWKH\HDUHQGHG0DUFKEDVHGRQDUHYLHZRIW 2) Limited by virtue Enterprises Private Limited, a Subsidiary TV Private of control composition o Prism of Equator Trading Network18 Media & Investments Limited and other explanatory information fortheyearended31March2016 information and otherexplanatory 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV 1 Non-currentinvestments 13 Investmentsinothers (b) SUHYLRXV\HDU HTXLW\VKDUHVRI InvestmentinJointlycontrolledentities (a) Investments inpreferenceshares:unquoted Investmentsinassociates (a) Investment inequityshares:unquoted /LPLWHG IRUPHUO\NQRZQDV5HIH[5HIULJHUDQWV/LPLWHG >&RVW SUHYLRXV\HDU HTXLW\VKDUHVRI SUHYLRXV\HDU HTXLW\VKDUHV Investment inequityshares:quoted (valued atcostunlessstatedotherwise) SUHY 7UXVW 0HGLD 1HWZRUN LQ LQWHUHVW %HQHÀFLDU\ Less: Provision fordiminution shares oftheCompany) Exchange AssociationLimited[Cost 8,98,500 (previousyear8,98,500)equitysharesof $GG 6KDUHLQSURÀW 2600 (previousyear2600)equitysharesofBookMyShowLimited,NewZealand Add: Shareinlossofassociate 1,00,000 (previousyear1,00,000)equitysharesof Less: Provision fordiminution $GG 6KDUHLQSURÀW Limited Private Limited Teleservices Private Limited[Cost SUHYLRXV\HDU HTXLW\VKDUHVRI SUHYLRXV\HDU RUGLQDU\VKDUHVRI86' Nil (previousyear3,192)equitysharesof Infrastructure IndiaLimited[Cost Infrastructure Private Limited[Costpreviousyear SHLX\D TL\ KUV RI VKDUHV HTXLW\ \HDU SUHYLRXV SHLX\D TL\ KUV RI Enterprises Private Limited VKDUHV HTXLW\ \HDU SUHYLRXV lakhs)] SUHYLRXV\HDU 1RQ&XPXODWLYH5HGHHPDE 1LO SUHYLRXV\HDU HTXLW\VKDUHVRI 3ULYDWH/LPLWHG>&RVW5H SUHYLRXV\HDU5H @ SUHYLRXV\HDU HTXLW\VKDUHVRI $GG 6KDUHLQSURÀW Television Private Limited[IncludingGoodwill of RI VKDUHV HTXLW\ \HDU SUHYLRXV Preference shares of SUHYLRXV\HDUQLO 2SWLRQDOO\&RQYHUWLEOH1RQ&XP Series “II”of ` 100eachfullypaidupinIBNLokmatNews Private Limited ` 10 eachfullypaid-upinPrism TVPrivate Limited ` ` 1(previousyear ` 1(previousyear ` 1]* 1(previousyear ` ` ` 10eachfullypaidupinWespro DigitalPrivate HDFKIXOO\SDLGXSLQ.6/ ,QGXVWULHV/LPLWHG 10 each fully paid up in Skorydove Systems 10eachfullypaidupinSkorydove ` ` ODNKV SUHYLRXV\HDU ` HDFKIXOO\SDLGXSLQ5HIH[,QGXVWULHV 0ec fYtaOln rvt iie 2,013.19 10 eachofYatra OnlinePrivate Limited ` ` ` ` ` ` 100eachfullypaidupinUshodaya 1)]* 10eachfullypaidup 1eachfullypaidup 1)]* ` 10eachfullypaidup ` ` 10eachfullypaidupinDelhiStock HDFKIXOO\SDLGXSLQ0RELOH1;7 1)]* ` ` 1(previousyear 10 eachfullypaidupinEenadu RV HU HTXLW\ \HDU LRXV XODWLYH5HGHHPDEOH HDFKLQ Preference Sharesof ` in Aeon Learnings in AeonLearnings 1)]* LQ[/HDUQLQJ in Ensemble ` 31 March2016 (3819)(13,881.95) (13,881.95) 200 250.00 250.00 (.0 (1.00) (1.00) 91 9.15 9.15 10 1.00 1.00 As at 61 - 6.18 .00.00 0.00 .00.00 0.00 .00.00 0.00 .00.00 0.00 .00.00 0.00 Annual Report 2015-16 Annual Report - 2.66 - - - - 0.00 - CONSOLIDATED 31 March2015 ` 1,393.88 2,155.96 inlakhs 12.30 As at 155 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 ` in lakhs As at As at 31 March 2016 31 March 2015 (b) Investment in associates 2 (previous year nil) Preference Shares of ` 1 each fully paid-up in Aeon Learning Private 0.01 - Limited (c) Investment in others 25,00,000 (previous year 25,00,000) Preference shares of ` 10 each fully paid up in DEN 250.00 250.00 Entertainment Network Private Limited 15,00,015 (previous year 15,00,015) Series A Preference Shares of USD 0.0001 each fully paid up in Yatra Online Inc. SUHYLRXV\HDU 6HULHV%3UHIHUHQFHVKDUHVRI 86'HDFKIXOO\SDLG 829.13 up in Yatra Online Inc. SUHYLRXV\HDU 6HULHV&3UHIHUHQFH6KDUHVRI 86'HDFKIXOO\SDLG 881.65 up in Yatra Online Inc. Government securities - unquoted 1DWLRQDO6DYLQJ&HUWLÀFDWHV - 18.00 In debentures and bonds - unquoted SUHYLRXV\HDU 8QVHFXUHG5HGHHPDEOH1RQ&RQYHUWLEOH8SS HU7LHU,,%RQGVRI ` in lakhs As at As at 31 March 2016 31 March 2015 14 Deferred tax assets (net) Deferred tax liability arising on account of Depreciation, amortisation and impairment (125.52) (53.56) Inventory amortisation (2,691.29) Gross deferred tax liability (3,535.72) (2,744.85) Deferred tax assets arising on account of ([SHQGLWXUHFKDUJHGWRWKHFRQVROLGDWHGVWDWHPHQWRISURÀWDQGORVVEXWDOORZDEOHIRUWD[SXUSRVH in subsequent years Provision for diminution in the value of investments - 8.69 Provision for doubtful debts and advances 1,012.30 Depreciation, amortisation, impairment and unabsorbed depreciation and carry forward losses 620.10 3URYLVLRQIRUHPSOR\HHEHQHÀWV 392.09 Gross deferred tax assets 4,361.54 3,719.55 Net deferred tax assets 825.82 974.70 156 Network18 Media & Investments Limited and other explanatory information fortheyearended31March2016 information and otherexplanatory 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV for morethan12monthsfromtherespectivebalancesheetdates. *Fixed depositsof Othernon-currentassets 16 Long-term loansandadvances 15 Less: Provision fordoubtfuladvancesto employees Considered doubtful Considered good Loans andadvancestoemployees taxcreditentitlement Minimum alternate Income taxpaid(netofprovisions) Prepaid expenses Less: Provision fordoubtfuladvances Considered doubtful Considered good Advances recoverableincashorkindforvaluetobereceived Others 5HVWULFWHGÀ[HGGHSRVLWV butnotdue Interest accrued Less: Provision fordoubtfulloansandadvances Considered doubtful Considered good Loans andadvancestoothers Less: Provision fordoubtfuldeposits Considered doubtful Considered good Security deposits Capital advances stated) (unsecured, consideredgood,unlessotherwise ` ODNKV SUHYLRXV\HDU ` 2.31 lakhs)areunderlienwithbanksagainstsalestaxcommitmentsandrestrictedfrom beingexchangedorusedtosettlea 31 March2016 31 March2016 7,0.4 58,029.27 70,702.84 1,4.0 12,340.30 12,340.30 4273 5,749.93 4,257.32 7654 4,956.27 7,645.49 (105.20) (993.01) 253.35 105.20 993.01 1.3 30.43 19.43 1.4 4.42 13.44 As at As at 21 2.11 - 2.11 8.91 Annual Report 2015-16 Annual Report CONSOLIDATED 31 March2015 31 March2015 ` ` 1,951.02 2,335.21 inlakhs inlakhs liability As at As at 2.31 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 ` in lakhs As at As at 31 March 2016 31 March 2015 17 Current investments - quoted (Valued at lower of cost or fair value) Investment in equity shares Investments in others 6,98,288 (previous year 6,98,288) equity shares of ` 10 each fully paid up in DEN Network Limited 70.73 70.73 Mutual Fund SUHYLRXV\HDU XQLWVRI':66KRUWPDWXULW\)XQG*URZWK 2,000.00 2,000.00 SUHYLRXV\HDU XQLWVRI.RWDN(TXLW\$UELWUDJH)XQG'LYLGHQG 1,050.86 1,500.00 SUHYLRXV\HDU XQLWVRI%LUOD6XQ/LIH6KRUW7HUP)XQG*URZWK5HJXODU 800.00 Plan 16,32,512 (previous year 16,32,512) units of SBI Dynamic Bond Fund-Growth 250.00 250.00 SUHYLRXV\HDU XQLWVRI7DWD/LTXLG)XQG 8.83 8.83 SUHYLRXV\HDU XQLWVRI,')&$UELWUDJH)XQG'LYLGHQG 5HJXODU3ODQ 1,500.00 SUHYLRXV\HDUQLO XQLWVRI87,)ORDWLQJ5DWH)XQG6735HJXODU3ODQ*URZWK 125.00 - SUHYLRXV\HDUQLO XQLWVRI%LUOD6XQ/LIH6DYLQJV)XQG*URZWK5HJXODU3ODQ 0.86 - SUHYLRXV\HDUQLO XQLWVRI6%,6KRUW7HUP'HEW)XQG5HJXODU3ODQ*URZWK - 86,595 (previous year nil) units of HDFC High Interest Fund - Short Term Plan - Growth 25.00 - 2,80,312 (previous year nil) units of UTI-Short Term Income Fund- Institutional Option - Growth 50.00 - 1LO SUHYLRXV\HDU XQLWVRI$[LV6KRUW7HUP)XQG*URZWK - 1LO SUHYLRXV\HDU XQLWVRI':68OWUD6KRUW7HUP)XQG,QVWLWXWLRQDO*URZWK3ODQ - 91.31 1LO SUHYLRXV\HDU XQLWVRI+')&/LTXLG)XQG'LYLGHQG5HLQYHVWPHQW3ODQ - Nil (previous year 20,52,369) units of IDFC Super Saver Income Fund - Medium Term - Plan B- - 252.55 Institutional Plan- Growth Nil (previous year 59,98,608 ) units of HDFC Short Term Plan Growth - 1,500.00 1LO SUHYLRXV\HDU XQLWVRI)UDQNOLQ7HPSOHWRQ,QGLD6KRUW7HUP,QFRPH3ODQ*URZWK - 2,000.00 5,444.75 10,651.04 5,515.48 10,721.77 Aggregate amount of quoted investments Aggregate amount of unquoted investments - - Aggregate market value of quoted investments ` in lakhs As at As at 31 March 2016 31 March 2015 18 Inventories (valued at lower of cost and net realisable value) 5DZPDWHULDOVDQGFRPSRQHQWV Projects-in-progress Work-in-progress - Stock-in-trade - 35.58 Stores and spares 199.90 36.93 Tapes and compact discs - 3URJUDPPLQJDQGÀOPULJKWV Less: Provision for obsolete inventory - 51,561.42 40,888.76 158 Network18 Media & Investments Limited ) Includes deposits of a) Notes: fortheyearended31March2016 information and otherexplanatory 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV b) Deposits of c) Deposits of 2 Cashandbankbalances 20 Trade receivables 19 margin moneyagainstletterofcredittovendorsandareexpectedberealisedwithin12 months. Unpaid non-cummulative convertible redeemablepreferenceshareaccount Unpaid non-cummulativeconvertible Balance withbankstowardsdepositswhichremainunclaimed In otherdepositaccount(refernotenobandc) In depositaccount-heldassecurity In current account - earmarked balances account -earmarked In current Deposits withoriginalmaturityofmorethan3monthsbutless12 Other bankbalances Cash onhand &KHTXHVGUDIWVRQKDQG In depositaccounts(refernotenoa) accounts In current Balances withbanks: Less:Provision fordoubtfulreceivables Unsecured,considereddoubtful Unsecured,consideredgood Secured,consideredgood Other receivables Less:Provision fordoubtfulreceivables Unsecured,considereddoubtful Unsecured,consideredgood Secured,consideredgood payment Trade receivablesoutstandingforaperiodexceedingsixmonthsfromthedatetheyweredue Cash andcashequivalents ` ` 99.25lakhs(previousyear ODNKV SUHYLRXV\HDU ` nil (previousyear ` ` ODNKV ZLWKPDWXULW\RIPRUHWKDQPRQWKV 55.92lakhs)areprovidedassecurityagainst non-fundbasedandfundcreditfacilities. ` 1,238.99 lakhs) are given as lien to sales tax authorities, against bank guarantees to custom authorities to meet export obliga 1,238.99 lakhs)aregivenaslientosalestaxauthorities,againstbankguaranteescustom authoritiestomeetexport 31 March2016 31 March2016 2,9.1 30,991.65 20,494.71 7,5.4 61,690.58 54,691.97 70,751.94 60,910.33 1,1.4 25,098.60 18,516.94 1977 5,893.05 1,977.77 9816 6,998.61 9,841.61 9,901.38 8,105.50 330 - 353.02 59.90 As at As at 6.50 5.51 Annual Report 2015-16 Annual Report CONSOLIDATED 31 March2015 31 March2015 ` ` (301.95) inlakhs inlakhs 301.95 tions and 63.99 20.68 As at As at 159 - FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 ` in lakhs As at As at 31 March 2016 31 March 2015 21 Short-term loans and advances (unsecured, considered good, unless otherwise stated) Security deposits Loans and advances to related party 89.30 Loans and advances to others Considered good 3,899.98 Considered doubtful Less: Provision for doubtful loans and advances 3,899.98 7,161.84 Advances recoverable in cash or in kind or for value to be received Considered good 15,802.61 9,999.29 Considered doubtful Less: Provision for doubtful loans and advances 15,802.61 9,999.29 Income tax paid (net of provisions) 2,682.89 Service tax input credit Loans and advances to employees 266.01 Prepaid expenses 5,098.26 16,740.29 17,021.48 37,145.02 34,886.45 ` in lakhs As at As at 31 March 2016 31 March 2015 22 Other current assets Unbilled revenue Interest receivable 335.83 Others 139.60 4,231.22 4,147.82 ` in lakhs 2015-16 2014-15 23 Revenue from operations Income from media operations Commission income Income from sale of products and services Other operating revenue 2,616.09 3,40,331.01 3,12,656.72 160 Network18 Media & Investments Limited and other explanatory information fortheyearended31March2016 information and otherexplanatory 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV 26 Costofmaterialsconsumedandtradedgoodssold 25 Otherincome 24 Miscellaneous income 3URÀWRQGLVSRVDORIÀ[HGDVVHWV 3URÀWRQH[FKDQJHUDWHÁXFWXDWLRQ Excess provisionwrittenback 3URÀWRQVDOHRIORQJWHUPLQYHVWPHQWV (PSOR\HHEHQHÀWV Staff welfareexpenses 3URÀWRQVDOHRIFXUUHQWLQYHVWPHQWV QHW - Long-term investments ofwork-in-progress Changeininventory c. Costoftradedproducts b. - Current Dividend incomeon investments - Others - Long-term Interest incomeon investments Employee stockcompensationexpenses Contribution toprovidentfundandother funds Salaries, wagesandbonus (PSOR\HHEHQHÀWVH[SHQVH Costofmaterialsconsumed a. Less: Work-in-progress attheendofyear Work-in-progress at the beginningofyear Less: Closingbalance /HVV ,QYHQWRU\ZULWWHQRIIDGMXVWPHQWRQVDOHRIVXEVLGLDU\ Add :Purchasesduringtheyear Opening balance - Less: Closingbalance - - Opening balance 5DZPDWHULDODQGFRPSRQHQWV Add :Purchasesduringtheyear 5DZPDWHULDODQGFRPSRQHQWV 6,0.4 56,932.20 66,908.04 9178 6,481.43 9,167.85 1982 2,962.80 1,988.29 3,200.50 3,590.30 2015-16 2015-16 2015-16 (53.65) 278 568.71 297.89 226 318.97 96.34 415.31 292.64 134.77 427.41 950.51 3.8 20.20 35.58 35.58 47 (1.14) 250.88 4.77 0.48 Annual Report 2015-16 Annual Report - 20.19 0.83 - - - 35.58 - - - 28.66 - CONSOLIDATED 50,383.51 ` ` ` 2014-15 2014-15 2014-15 inlakhs inlakhs inlakhs 651.29 258.88 310.29 98.03 3.63 161 - FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 ` in lakhs 2015-16 2014-15 27 Finance costs Interest expense 10,561.01 2WKHUÀQDQFLDOFKDUJHV 9,505.70 11,317.60 ` in lakhs 2015-16 2014-15 28 Other expenses Studio and equipment hire charges 2,121.25 Telecast and uplinking fee Content and franchise expenses Media professional fees Other production expenses Event expenses 2,083.00 Site support cost Consumption of stores and spares 322.93 Electricity, power and fuel expenses 5HQW 8,195.20 5HSDLUVDQGPDLQWHQDQFH3ODQWDQGHTXLSPHQW 1,858.51 5HSDLUVDQGPDLQWHQDQFH2WKHUV 1,813.12 1,230.26 Insurance 635.83 5DWHVDQGWD[HV 898.82 Legal and professional expenses (refer note 28.1 below) Directors sitting fee 133.02 63.30 /RVVRQGLVSRVDORIÀ[HGDVVHWV 62.83 93.82 %DGGHEWVDQGDGYDQFHVZULWWHQRIISURYLGHGIRU 2,265.18 2IÀFHXSNHHSDQGPDLQWHQDQFHH[SHQVHV Travelling and conveyance Postage and communication costs Printing and stationery 66.22 Outwork and ancillary printing 126.15 196.85 /RVVRQH[FKDQJHUDWHÁXFWXDWLRQ 20.28 281.20 Vehicle running and maintenance Charity and donations (refer note 28.2 below) - Miscellaneous expenses 93,666.08 80,476.19 Note: 28.1 Payments to auditor* as auditor other services 35.81 38.06 for reimbursement of expenses 15.96 142.72 141.26 *excluding service tax. 28.2 Expenditure related to Corporate Social responsibility as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof: ` ODNKV SUHYLRXV\HDU` nil). 162 Network18 Media & Investments Limited *since the potential equity shares are anti-dilutive, diluted earnings per share is same as basic earnings pershare. pershareissameasbasicearnings *since thepotentialequitysharesareanti-dilutive,dilutedearnings fortheyearended31March2016 information and otherexplanatory 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV 3 Earningspershare(basicanddiluted) 32 Tax expense 31 Priorperiodexpense 30 29 Exceptional items Earnings pershare(basicanddiluted)* Nominal valueofequityshare EDVLFGLOXWHGHDUQLQJVSHUVKDUH Weighted averagenumberofequitysharesforcalculating Loss after taxattributabletoequityshareholders( Loss after the numberofequitysharesoutstandingforyear, asbelow taxby perequitysharehavebeencomputedbydividingthenetlossafter Basic anddilutedearnings tax Deferred tax Current Other productionexpenses %DGGHEWVDQGDGYDQFHVZULWWHQRIISURYLGHGIRU 3URYLVLRQRIQRQUHFRYHUDEOHDQGGRXEWIXOORDQVDGYDQFHVUHFHLY Diminution inthevalueofinvestments 7HUPLQDWLRQEHQHÀWVDQGUHODWHGFRQVXOWDQF\FKDUJHV ofgoodwill Impairment Consultancy charges 2EVROHVFHQFHLPSDLUPHQW DFFHOHUDWHGGHSUHFLDWLRQ RIWDQJLEOH ` inlakhs) DQGLQWDQJLEOHDVVHWV DEOHVDQGLQYHQWRU\ 4707 3,897.80 4,780.78 2015-16 2015-16 2015-16 2015-16 (.3 (10.13) (0.33) 50 5.00 5.00 Annual Report 2015-16 Annual Report ------6,408.92 - - 1,05,537.14 - CONSOLIDATED (1,05,990.88) ` ` ` (358.86) 2014-15 2014-15 2014-15 2014-15 inlakhs inlakhs inlakhs 163 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 33. Schemes of arrangement :LWKHIIHFWIURP-XQH&DSLWDO/LPLWHGDQG%.+ROGLQJV/LPLWHGZHUHDPDOJDPDWHGZLWK1HWZRUN+ROGLQJV/LPLWHGRQREWDLQLQJ WKHFHUWLÀFDWHRIDPDOJDPDWLRQIURPWKH5HJLVWUDURI&RPSDQLHV0DXULWLXV A Scheme of Amalgamation & Arrangement (“the Scheme”) for merger of Prism TV Private Limited with Viacom18 Media Private Limited with HIIHFWIURPWKH´$SSRLQWHG'DWHµRI$SULOKDVEHHQÀOHGZLWKWKH+RQRXUDEOH+LJK&RXUWRI-XGLFDWXUHDW0XPEDL8SRQUHFHLSWRIWKH QHFHVVDU\VWDWXWRU\DSSURYDOVWKH6FKHPHZLOOEHJLYHQHIIHFWWRLQWKHVHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV 7KH%RDUGVRI'LUHFWRUVRI&DSLWDO)LQFDS3ULYDWH/LPLWHGLQLWVPHHWLQJKHOGRQ-DQXDU\FRQVLGHUHGDQGDSSURYHGDVFKHPHRI $UUDQJHPHQW ´WKH6FKHPHµ ZKLFKLQWHUDOLDHQYLVDJHGPHUJHURI55%,QYHVWPHQW3ULYDWH/LPLWHG597)LQKROG3ULYDWH/LPLWHG55.)LQKROG 3ULYDWH/LPLWHG6HWSUR'LVWULEXWLRQDQG5HHG,QIRPHGLD3ULYDWH/LPLWHGZLWKFRPSDQ\7KH6FKHPHZDVDSSURYHGE\+RQ·DEOHKLJK&RXUW RI'HOKLDQG+RQ·DEOH&RXUWRI%RPED\RQ0D\DQG-DQXDU\UHVSHFWLYHO\7KH6FKHPHZDVWREHFRPHHIIHFWLYHRQÀOOLQJ RIFHUWLÀHGFRSLHVRIWKH+RQ·DEOH+LJK&RXUW·VRUGHUVZLWKWKHUHVSHFWLYHMXULVGLFWLRQDO5HJLVWUDURI&RPSDQLHV'XULQJWKH\HDUWKHSODQIRU the proposed merger was shelved by complying with required legal process. 34. Contingent liabilities and commitments not provided for i) Contingent liabilities: A In the case of the Company ` in lakhs As at As at Particulars 31 March 2016 31 March 2015 Corporate guarantees given in connection with borrowings of subsidiaries: TV18 Broadcast Limited (Formerly ibn18 Broadcast Limited) - 986.00 TV18 Home Shopping Network Limited 15,902.28 Total 15,902.28 8,819.06 7KH&RPSDQ\KDVLVVXHGOHWWHUVRIÀQDQFLDOVXSSRUWWRFHUWDLQVXEVLGLDU\FRPSDQLHV²79+RPH6KRSSLQJ1HWZRUN/LPLWHG:HE Software Services Limited and Infomedia Press Limited. Claims against the company not acknowledged as debts Demand for stamp duty on transfer of property ` ODNKV SUHYLRXV\HDU`ODNKV Contingent payments under agreements for sale of subsidiaries- ` 169.93 lakhs (previous year ` 169.93 lakhs). B In the case of TV18 Broadcast Limited (TV18) i. TV18 had purchased capital equipment under the ‘Export Promotion Capital Goods Scheme’ with an export commitment of `ODNKVRYHUDSHULRGRI\HDUVFRPPHQFLQJIURP$XJXVW79KDGPDGHDSSOLFDWLRQVRI` ODNKVWRWKH'LUHFWRU*HQHUDORI)RUHLJQ7UDGHIRULVVXDQFHRIWKHH[SRUWREOLJDWLRQGLVFKDUJHFHUWLÀFDWH (2'& WRZDUGV IXOÀOOPHQWRILWVH[SRUWREOLJDWLRQLQWKHHDUOLHU\HDUV$JDLQVWVXFKDSSOLFDWLRQ79LV\HWWRUHFHLYH(2'&IRU` lakhs as at the current year end. TV18 would be liable to resultant customs duty liability of ` ODNKVIRUVXFKSHQGLQJ EODCs. Further, banks have given a guarantee amounting to ` ODNKV SUHYLRXV\HDU` ODNKV RQEHKDOIRI TV18 to the customs authorities for the same. ii. Claims against TV18 not acknowledged as debts include demands raised by Income Tax authorities aggregating to ` lakhs (previous year `ODNKV $PRXQWGHSRVLWHGE\79DJDLQVWWKHVHFODLPVLV`ODNKV SUHYLRXV\HDU `ODNKV LVLQFOXGHGLQ$GYDQFH,QFRPH7D[1RSURYLVLRQKDVEHHQPDGHLQWKHVHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV for these demands as TV18 expects a favorable decision in appeal. Network18 Media & Investments Limited i. TV18 hasextended corporateguaranteeinfavourofICICIHomeFinanceCompanyLimitedconsiderationloanfacilit iii. a) The employees of TV18 fortheyearended31March2016 information and otherexplanatory 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV . Inthecaseof BigTree Private Limited (‘BigTree’) Entertainment E. In thecaseof EquatorTrading EnterprisePrivateLtd(Equator),PrismTVLimited,Panorama Television PrivateLi D. Y79KDVUHFHLYHGOHJDOQRWLFHVRIFODLPVODZVXLWVÀOH LY b) Former employees of TV18 . Inthecaseof InfomediaPressLimited(‘Infomedia’) F. Claims againstBigTree taxand otherl notacknowledgedasdebtsincludedemandsraisedbyIncome-tax authorities,Service i to Infomedia has receiveddemandsascertaining (i) Claimsagainst Infomedia notacknowledgedasdebts: . InthecaseofViacom18MediaPrivateLimited (Viacom18): C. TV18 hasreceiveddemandordersfromtheCollector ofStamps,Delhiaggregatingto v. atclr %ofinterest Particulars Particulars Claims againstEquatornotacknowledgedasdebts Claims againstViacom18notacknowledgedasdebts Taxation mattersinrespectofwhichappeals arepending pending Taxation mattersinrespectofwhichappealsare Total Guarantee givenbyViacom18 Bank GuaranteegivenbyViacom18 Total claims aggregatingto extended byICICIHomeFinanceCompanyLimitedto: year and defamationsuitsinrelationtotheprogrammesproducedbyit,aggregateclaimbeing UHV QWH HK+J&XW DJDWG W\ Q XK GHPDQG VXFK RQ VWD\ JUDQWHG KDV &RXUW +LJK 'HOKL WKH DQG RUGHUV preferred appealsbeforeappellateauthorities andalsodeposited preferred WKHDVVHVVPHQW\HDUV DQG ODZVXLWVDQGWKXVQRSURYLVLRQKDVEHHQPDGHDJDLQVWWKHVHLQ statements hasbeenmadeasTV18isexpectingafavourabledecisionbasedonmeritsofthecase,advisedbyitslawyers. RIDPDOJDPDWLRQRI79DQGWKH&RPSDQ\DQGRQLVVXDQFHRIVKDU ` ` 135.26lakhs)wasoutstandinginrespectofsuchloan. ODNKV ,QWKHRSLQLRQRIWKHPDQDJHPHQWQRPDWHULD ` 2,815.91lakhs(previousyear ` 100.00lakhs(previousyear ` ODNKV SUHYLRXV\HDU1LO ` ` ODNKV SUHYLRXV\HDU ODNKV GDJDLQVWLWUHODWLQJWRLQIULQJHPHQWRIFRS\ULJKWVREMHFWLRQD 50 50 50 50 1,8.1 9611 5578 7,783.90 15,567.81 9,641.16 19,282.31 ` ODNKV DVDWWKH\HDUHQG Total WKHVHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV As at31March2016 ` 1,902.02 ODNKVXSWR0DUFK HVE\7979KDVÀOHGZULWSHWLWLRQDJDLQVWVHDUFK UHV1SRLLQ Q KVFQRLDHÀQDQFLDO FRQVROLGDWHG WKHVH LQ SURYLVLRQ 1R RUGHUV OOLDELOLW\LVOLNHO\WRDULVHRQDFFRXQWRIVXFKFODLPV ,QIRPHGLDKDVGLVSXWHGWKHGHPDQGVDQGKDV Group’s share 951.01 ` 31 March2016 ODNKV WRZDUGVLQFRPHWD[IRU ` 1,6.3 21,353.36 12,064.73 ODNKVUHODWLQJWRVFKHPH 6,988.39 As at ` Annual Report 2015-16 Annual Report ` ODNKV SUHYLRXV oa Group’sshare Total 1.28lakhs(previousyear As at31March2015 1,500.00 CONSOLIDATED 31 March2015 EOHFRQWHQWV ` ` inlakhs inlakhs mited : As at egal 165 y FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 LL 6DOHVWD[ZRUNVFRQWUDFWWD[PDWWHUVGLVSXWHGE\,QIRPHGLDUHODWLQJWRLVVXHRIDSSOLFDELOLW\DOORZDELOLW\HWFDJJUHJDWLQJWR `ODNKV SUHYLRXV\HDU` ODNKV IRUWKHÀQDQFLDO\HDUV DQG ,QUHVSHFWRIWKHGHPDQGVFODLPVGHVFULEHGLQSDUDJUDSKV L DQG LL DERYH,QIRPHGLDKDVDOVRDVVHVVHGWKDWWKHSRVVLELOLW\RIWKHVH cases being decided against Infomedia and the demand crystallising on Infomedia is not likely and hence no provision is required. G. In the case of other entities Claim against Setpro18 Distribution Media Limited not acknowledged as debts is the demand raised by the income-tax authorities relating to the assessment year 2010-11 amounts to ` ODNKV SUHYLRXV\HDU` ODNKV ,WKDVGHSRVLWHG` 61.25 lakhs challan against the claim on different dates and `ODNKV SUHYLRXV\HDU`ODNKV KDVEHHQDGMXVWHGDJDLQVWWKHUHIXQG for the assessment year 2012-13 of Setpro18 Distribution Media Limited. &ODLPDJDLQVWWKH6*$1HZV/LPLWHGQRZPHUJHGZLWK55%,QYHVWPHQW3ULYDWH/LPLWHGQRWDFNQRZOHGJHGDVGHEWVLVWKHGHPDQG raised by the Income Tax Authorities relating to the assessment year 2009-10 amounts to ` 1,535.98 lakhs (previous year ` ODNKV ,WKDVQ·WGHSRVLWHGWKHGHPDQGUDLVHGE\WKH,QFRPH7D[$XWKRULWLHV$SSOLFDWLRQXVÀOHGRQ-XO\IRU claiming carry forward losses. &ODLPDJDLQVWWKH5HHG,QIRPHGLD,QGLD3ULYDWH/LPLWHGQRWDFNQRZOHGJHGDVGHEWLVWKHGHPDQGUDLVHGE\WKHLQFRPHWD[DXWKRULWLHV relating to the assessment year 2010-11 amounts to ` ODNKVZKLFKKDVEHHQGLVSXWHGE\5HHG,QIRPHGLD,QGLD3ULYDWH /LPLWHG7KH&,7$SSHDODOORZHGSDUWLQFRPSDQ\IDYRXU,WKDVIXUWKHUÀOHGDQDSSHDOEHIRUH,7$7DJDLQVW&,7²$SSHDO2UGHU Accordingly, no provision has been made in books of accounts. Preference dividend of `ODNKV SUHYLRXV\HDU`ODNKV RQFXPXODWLYHUHGHHPDEOHFRQYHUWLEOHSUHIHUHQFHVKDUHV not provided for in Web18 Software Service Limited. H. Other litigations 0U9LFWRU)HUQDQGHVDQGRWKHUV ´SODLQWLIIVµ KDGÀOHGDGHULYDWLYHDFWLRQVXLWEHIRUHWKH%RPED\+LJK&RXUWDJDLQVW0U5DJKDY Bahl, TV18 and other TV18 group entities alleging that all business opportunities undertaken by the Network18 Group should be routed through e-Eighteen.com Limited. The plaintiffs have valued their claim in the suit at `ODNKV SUHYLRXV\HDU` ODNKV 7KHVXLWLVFXUUHQWO\SHQGLQJ Further, Mr. Victor Fernandes (“plaintiff”) has preferred an Appeal before the Hon’ble Supreme Court of India against the order of the Hon’ble Securities Appellate Tribunal (SAT) dated 8 February, 2013 which dismissed the appeal relating to grant of listing approval by the National Stock Exchange (NSE) for the rights issue of the Company. Based on the legal advice by the legal counsel, management is of the view that the above claims made by the plaintiffs are unlikely WRVXFFHHGDQGKDVDFFRUGLQJO\PDGHQRSURYLVLRQVLQWKHÀQDQFLDOVWDWHPHQWV (ii) Capital commitments ` in lakhs As at As at Particulars 31 March 2016 31 March 2015 Capital expenditure commitments Other commitments for non-cancellable agreement with the vendors 166 Network18 Media & Investments Limited III) Reconciliation offairvalueassetsandobligations: Reconciliation III) ofopeningandclosingbalancesfairvalueplanassets: Reconciliation II) 7KHIROORZLQJWDEOHVHWVRXWWKHIXQGHGXQIXQGHGVWDWXVRI 'HÀQHGEHQHÀWSODQVDQGRWKHUORQJWHUPHPSOR\HHEHQHÀWV L Disclosures asrequiredbyAccountingStandard15 35. fortheyearended31March2016 information and otherexplanatory 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV 5HFRQFLOLDWLRQRIRSHQLQJDQGFORVLQJEDODQFHVRI'HÀQHG% , DPRXQWUHFRJQLVHGLQWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV Fair valueofplanassetsatbeginningtheyear 'HÀQHGEHQHÀWREOLJDWLRQDW\HDUHQG 'HÀQHGEHQHÀWREOLJDWLRQDWEHJLQQLQJRIWKH\HDU %HQHÀWVSDLG $GMXVWPHQWRIFKDQJHVDOHRIVXEVLGLDULHV Actuarial loss Interest cost cost service Current Addition duetonewacquisitionofsubsidiary mutrcgie ncnoiae aac he 1867 ,5.2 1019 9.2 2041 1,667.08 2,064.16 899.92 1,071.99 1,652.22 1,846.76 Amount recognised in consolidated balance sheet Present valueofobligation Fair valueofplanassets Expected return onplanassets Expected return jointly controlledentity to toliabilityduechangeofPrism fromsubsidiary Fair valueofplanassetspertaining Employer contribution $FWXDULDOJDLQ ORVV Fair valueofplanassets atyearend %HQHÀWVSDLG 2782 ,3.8 1019 9.2 2041 1,667.08 2,064.16 899.92 1,071.99 2,535.58 2,778.23 2555 ,9.8 899.92 2,296.98 2,535.58 2015-16 Gratuity (Funded) As at31March 2016 Fne)(nudd (Unfunded) (Unfunded) (Funded) rtiyGaut CompensatedAbsences Gratuity Gratuity - - - WKHGHÀQHGEHQHÀWVSODQVDQGRWKHUORQJWHUPHPSOR\HHEHQHÀWV 2,535.58 (5.1 (211.05) (558.81) 2014-15 HQHÀW2EOLJDWLRQ 132 98 62.29 69.89 193.29 833 - - - - 883.36 2015 - Gratuity (Unfunded) 2015-16 As at31March 113.22 2016 2014-15 899.92 2015 (1.9 (105.13) (119.19) 2015-16 (99) - (19.91) 833 811.65 883.36 65.02 ------Gratuity Annual Report 2015-16 Annual Report (Unfunded) Asat31March Compensated Absences 2015-16 211.81 2016 CONSOLIDATED ` ` ` inlakhs inlakhs inlakhs 2014-15 2014-15 128.28 883.36 DQGWKH 66.98 2015 - FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 IV) Expense recognised during the year: ` in lakhs Gratuity Gratuity Compensated Absences (Funded) (Unfunded) (Unfunded) 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 Current service cost Interest cost 193.29 69.89 62.29 Expected return on plan assets (66.98) - - - - Actuarial loss 82.91 113.22 211.81 Net cost 555.18 748.85 405.55 444.05 990.36 850.38 V) Actuarial assumptions: ` in lakhs Gratuity Gratuity Compensated Absences (Funded) (Unfunded) (Unfunded) 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 Mortality Table ,$/0 GXO\PRGLÀHG WR WR WR WR 8.00% 8.00% Discount rate (per annum) 8.00% 8.00% 8.00% 8.00% WR WR ---- Expected rate of return on plan assets (per annum) 8.00% 8.00% 5.50% to 5.50% to 5.50% to 5.50% to 5.50% to 5.50% to 5DWHRIHVFDODWLRQLQVDODU\ SHUDQQXP 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 5HWLUHPHQW$JH 60 years 2015-16 2014-15 Withdrawal rates Age Percentage Age Percentage Upto 30 Year 3 Upto 30 Year 3 8SWR 7KHHVWLPDWHVRIUDWHRIHVFDODWLRQLQVDODU\FRQVLGHUHGLQDFWXDULDOYDOXDWLRQWDNHLQWRDFFRXQWLQÁDWLRQVHQLRULW\SURPRWLRQDQGRWKHU UHOHYDQWIDFWRUVLQFOXGLQJVXSSO\DQGGHPDQGLQWKHHPSOR\PHQWPDUNHW7KHDERYHLQIRUPDWLRQLVFHUWLÀHGE\WKHDFWXDU\ The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of Plan assets held, assessed risks, historical results of return on plan assets and the Group’s policy for plan assets management. 168 Network18 Media & Investments Limited The Company, company, alongwithitssubsidiary TV18BroadcastLimited,hasjointlyestablishedanEmployeeWelfare Planon2 LLL 2WKHUORQJWHUPHPSOR\HHEHQHÀWV The Grouphascontributed &RQWULEXWLRQWRGHÀQHGFRQWULEXWLRQSODQVUHFRJQLVHGDVH[SHQ 3ODQDVVHWVRIWKH*URXSPDLQO\FRPSULVHIXQGVPDQDJHGE\ 'HÀQHGFRQWULEXWLRQSODQ 7KHHVWLPDWHVRIIXWXUHVDODU\LQFUHDVHVFRQVLGHULQJWKH LL oninvestmentsofthefundduring rateofreturn isbasedontheexpectationofaveragelongterm The expectedreturn 2. Securitiesasatthebalancesheetdatefo The discountrateisbasedontheprevailingmarketyieldofIndianGovernment 1. Notes: 7KHSUHVHQWYDOXHRIGHÀQHGEHQHÀWREOLJDWLRQVDQGH[SHU 9, fortheyearended31March2016 information and otherexplanatory 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV During theyearended31March2016and2015,therewerenonetaccretions tothecorpusofaforementionedTrust 7KH(PSOR\HH:HOIDUH3ODQSURYLGHVWKDWDQ\DFFUHWLRQWRWKH IRUWKHEHQHÀWRIWKHLU LVUHFRJQLVHGDVDQH[SHQVHLQWKHFRQVROLGDWHGVWDWHPHQWRI3U DFFRUGLQJO\QROLDELOLW\RUSODQDVVHWVKDYHEHHQSURYLGHGUHF EHQHÀWWREHSURYLGHGRXWRIVXFKDFFUHWLRQZLOOEHDWWKHGLVF Welfare Trust hasbeenconstitutedundertheIndianTrusts 2009. Act,1881videTrust Deeddated 19February LQFRPHHWF ZLOOEHXWLOLVHGIRUWKHEHQHÀWRIEHQHÀFLDULHVX ([SHULHQFHDGMXVWPHQWRISODQOLDELOLWLHV ORVV JDLQ ([SHULHQFHDGMXVWPHQWRISODQDVVHWV ORVV JDLQ &KDQJHVLQDFWXDULDODVVXPSWLRQVRISODQOLDELOLWLHV ORVV JD $FWXDULDOJDLQ ORVV RQSODQDVVHWV $FWXDULDOORVV JDLQ RQSODQREOLJDWLRQ 'HÀFLWLQWKHSODQ Fair valueofplanassets 'HÀQHGEHQHÀWREOLJDWLRQ Gratuity Particular previous fourannualperiodsisasbelow ` H[LVWLQJDQGIXWXUHHPSOR\HHVDQG ODNKV SUHYLRXV\HDU LQÁDWLRQVHQLRULW\SURPRWLRQDQGRWKHUUHOHYDQWIDFWRUV WKHLQVXUHULH/LIH,QVXUDQFH&RUSRUDWLRQRI,QGLD ` Q LQ SRQRFFXUUHQFHRIFHUWDLQVSHFLÀFHYHQWV,WIXUWKHUSURYLGHVW 2,308.55lakhs)toProvident Fund andEmployeeStateInsurancethesame UHWLRQRIWKHWUXVWHHV RJQLVHGLQWKHVHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV WRDGPLQLVWHUWKHVDPHD7UXVWQDPHG1HWZRUN*URXS6HQLRU3U VHIRUWKH\HDULVDVXQGHU RÀWDQG/RVV FRUSXVRIWKH7UXVW OLNHGLYLGHQGVSURÀWRQVDOHRILQYHVWPHQ LHQFHDGMXVWPHQWVDULVLQJRQSODQOLDELOLWLHVLQFXUUHQWDQG 3,850.22 (220.82) (65.02) 261.15 65.02 2016 208)123 (262.20) 102.33 (260.81) 883.36 0521 032012 2013 2014 2015 As at31March 3,029.82 (10.85) r the estimated term ofobligations. r theestimatedterm the estimated term oftheobligations. theestimatedterm 10.85 Annual Report 2015-16 Annual Report 0.239.00 102.52 KDWWKHDPRXQWRI CONSOLIDATED WVLQWHUHVW RIHVVLRQDO ` February February 1,635.09 2,293.31 inlakhs 658.22 (1.26) and 169 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 36. Leases Operating leases (as lessee) L 7KH*URXSKDVWDNHQYDULRXVRIÀFHSUHPLVHVXQGHURSHUDWLQJOHDVHDJUHHPHQWV7KHVHDUHJHQHUDOO\QRQFDQFHOODEOHDQGDUHUHQHZDEOH by mutual consent on mutually agreed terms. ii. Lease payments for the year in respect of non-cancellable operating leases: ` ODNKV SUHYLRXV\HDU` 8,195.20 lakhs) iii. The future minimum lease payments under non-cancelable operating leases are: ` in lakhs As at As at Particulars 31 March 2016 31 March 2015 Not later than one year /DWHUWKDQRQH\HDUEXWQRWODWHUWKDQÀYH\HDUV 9,933.11 /DWHUWKDQÀYH\HDUV Finance leases (as lessee) 7KH*URXSKDVHQWHUHGLQWRÀQDQFHOHDVHDUUDQJHPHQWVIRUFHUWDLQHTXLSPHQWVZKLFKSURYLGHWKH*URXSDQRSWLRQWRSXUFKDVHWKHDVVHWVDW the end of the lease period. Minimum lease payments amounting to ` nil (previous year ` 26.16 lakhs) have been made during the year. 37. The Group has recognised an expense of ` ODNKV SUHYLRXV\HDU` ODNKV LQUHVSHFWRIWKHJLIWFRXSRQFRVWXQGHUWKHKHDG ¶·'LVWULEXWLRQDGYHUWLVLQJDQGEXVLQHVVSURPRWLRQ··LQWKHVWDWHPHQWRISURÀWDQGORVVIRUWKH\HDUHQGHG0DUFKDVSHUWKH$6 Provisions, Contigent Liabilities and Contigent Assets’’: The movement is given below: ` in lakhs As at As at Particulars 31 March 2016 31 March 2015 Opening balance 130.00 80.00 Add: Provision made during the year Less: Provision utilised during the year Closing balance 100.00 130.00 Network18 Media & Investments Limited 38. Segment reporting fortheyearended31March2016 information and otherexplanatory 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV ` in lakhs Year ended 31 March 2016 Year ended 31 March 2015 Film Film Media Media production and Others Unallocable Total production and Others Unallocable Total operations operations distribution distribution Revenue Income from operations 3,31,212.83 12,920.22 - - - - 3,11,265.01 ,QWHUVHJPHQW5HYHQXH ---- ---- Total revenue 3,31,212.83 12,920.22 - - 3,40,331.01 3,06,168.94 5,096.07 - - 3,12,656.72 Segment results 11,246.59 134.16 (146.41) - 11,234.34 3,162.73 (644.33) (117.86) - 2,400.53 Add: Unallocated income - - - --- Less: Unallocated expenses - - - --- Less: Finance cost - - - --- Less: Exceptional items ------ 3URÀW ORVV EHIRUHWD[ 11,246.59 134.16 (146.41) - 8,640.73 3,162.73 (644.33) (117.86) - (1,09,004.73) Tax expense - - - - ---- 3URÀW ORVV DIWHUWD[DQGEHIRUHPLQRULW\LQWHUHVW 11,246.59 134.16 (146.41) - 3,859.95 3,162.73 (644.33) (117.86) - (1,12,902.53) DQGVKDUHLQSURÀWRIDVVRFLDWHV Segment assets 13,502.39 903.56 - - Unallocated assets - - - --- Total assets 4,44,558.44 13,502.39 903.56 1,41,400.54 6,00,364.93 4,15,493.25 11,659.78 905.44 1,42,010.69 5,70,069.16 Segment liabilities 1,25,829.90 3,085.87 88.71 - 1,29,004.48 1,14,135.48 2,102.83 155.19 - 1,16,393.50 Unallocated liabilities - - - 1,22,112.35 1,22,112.35 - - - 1,10,998.26 1,10,998.26 Total liabilities 1,25,829.90 3,085.87 88.71 1,22,112.35 2,51,116.83 1,14,135.48 2,102.83 155.19 1,10,998.26 2,27,391.76 Capital expenditure - - - - 18,382.98 - - - - Depreciation and amortisation - - - - ---- Non-cash expenditure other than depreciation and ---- - - - - 1,11,908.63 amortisation Notes: The accounting policies adopted for segment reporting are in line with those of the Group with the following additional policies for segment reporting: a) Inter segment revenues have been accounted for based on the transaction price agreed to between segments at estimated cost of the transferor segment. E 5HYHQXHVDQGH[SHQVHVKDYHEHHQLGHQWLÀHGWRVHJPHQWVRQWKHEDVLVRIWKHLUUHODWLRQVKLSWRWKHRSHUDWLQJDFWLYLWLHVRIWKHVHJPHQW F 5HYHQXHVDQGH[SHQVHVZKLFKUHODWHWRWKH*URXSDVDZKROHDQGDUHQRWDOORFDEOHWRVHJPHQWVRQDUHDVRQDEOHEDVLVKDYHEHHQLQFOXGHGXQGHU´8QDOORFDWHGFRUSRUDWHH[SHQVHVµ8QDOORFDWHGFRUSRUDWH H[SHQVHDOVRLQFOXGHVWD[HVDQGÀQDQFHFKDUJHVDQGRWKHUXQDOORFDEOHFRUSRUDWHH[SHQVHV d) Assets and liabilities, which relate to the Group as a whole and are not allocable to segments on a reasonable basis, are shown as unallocated corporate assets and liabilities respectively. Annual Report 2015-16 Annual Report CONSOLIDATED FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 39. Related party disclosures i. List of related parties and relationships Sr No Name of Related Party Relationship 1 ,QGHSHQGHQW0HGLD7UXVW ZHI-XO\ 2 $GYHQWXUH0DUNHWLQJ3ULYDWH/LPLWHG ZHI-XO\ 3 :DWHUPDUN,QIUDWHFK3ULYDWH/LPLWHG ZHI-XO\ &RORUIXO0HGLD3ULYDWH/LPLWHG ZHI-XO\ 5 5%0HGLD+ROGLQJV3ULYDWH/LPLWHG ZHI-XO\ Enterprises exercising control 6 5%0HGLDVRIW3ULYDWH/LPLWHG ZHI-XO\ 55%0HGLDVRIW3ULYDWH/LPLWHG ZHI-XO\ 8 5%+ROGLQJV3ULYDWH/LPLWHG ZHI-XO\ 9 6KLQDQR5HWDLO3ULYDWH/LPLWHG ZHI-XO\ 10 5HOLDQFH,QGXVWULHV/LPLWHG 5,/ ZHI-XO\ %HQHÀFLDU\3URWHFWRURI,QGHSHQGHQW0HGLD7UXVW 11 5HOLDQFH,QGXVWULDO,QYHVWPHQWVDQG+ROGLQJV/LPLWHG ZHI-XO\ 12 IBN Lokmat News Private Limited 13 Viacom18 Media Private Limited IndiaCast Media Distribution Private Limited 15 Ubona Technologies Private Limited 16 Prism TV Private Limited (wef 01 August 2015) Indiacast Distribution Private Limited (earlier Indiacast UTV Media Distribution Private Limited) Jointly controlled entities 18 IndiaCast UK Limited 19 IndiaCast US Limited 20 The Indian Film Company Limited (upto 19 January 2015) 21 Viacom18 US Inc 22 5RSWRQDO/LPLWHG&\SUXV 23 Viacom18 Media UK Limited ;/HDUQLQJV3ULYDWH/LPLWHG 25 Wespro Digital Private Limited (upto 08 April 2015) 26 Eenadu Television Private Limited Associates Aeon Learnings Private Limited 28 Book My Show Limited 29 A P Parigi (upto 30 September 2015) Key Management Personnel 30 5HOLDQFH5HWDLO/LPLWHG ZHI-XO\ 31 5HOLDQFH%UDQGV/LPLWHG ZHI-XO\ 32 ,0*5HOLDQFH/LPLWHG ZHI-XO\ 33 5HOLDQFH&RUSRUDWH,73DUN/LPLWHG ZHI-XO\ Fellow subsidiaries ,QGLDZLQ6SRUWV3ULYDWH/LPLWHG ZHI-XO\ 35 5HOLDQFH&RPPHUFLDO7UDGLQJ3ULYDWH/LPLWHG ZHI-XO\ 36 5HOLDQFH-LR0HVVDJLQJ6HUYLFH3ULYDWH/LPLWHG ZHI-XO\ &RQWUROE\,QGHSHQGHQW0HGLD7UXVWRIZKLFK5,/LVWKHVROHEHQHÀFLDU\ 6XEVLGLDU\RI5,/WKHVROHEHQHÀFLDU\RI,QGHSHQGHQW0HGLD7UXVW Network18 Media & Investments Limited L5HODWHGSDUW\WUDQVDFWLRQVDQGEDODQFHV ÀJXUHVLQEUDFNHW LL fortheyearended31March2016 information and otherexplanatory 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV epoDgtlPiaeLmtd------Fellow subsidiaries 0.20 Associates ,0*5HOLDQFH/LPLWHG Prism TVPrivate Limited Jointlycontrolledentities Eenadu Television Private Limited 5HOLDQFH%UDQGV/LPLWHG IndiaCast USLimited IndiaCast MediaDistributionPrivate Limited IndiaCast UKLimited Indiacast DistributionPrivate Limited Wespro DigitalPrivate Limited IBN LokmatNewsPrivate Limited Viacom18 MediaPrivate Limited Income fromoperationsandotherincome Particulars 5HOLDQFH5HWDLO/LPLWHG 5HOLDQFH&RUSRUDWH,73DUN/LPLWHG niwnSot rvt iie -- - Private Limited Indiawin Sports 5HOLDQFH&RPPHUFLDO7UDGLQJ3ULYDWH/LPLWHG 5HOLDQFH,QGXVWULHV/LPLWHG 5HOLDQFH-LR0HVVDJLQJ6HUYLFH3ULYDWH/LPLWHG nics itiuinPiaeLmtd ,6.5------1,568.65 - 6,905.35 Eenadu Television Private Limited IndiaCast MediaDistributionPrivate Limited Indiacast DistributionPrivate Limited 5HOLDQFH5HWDLO/LPLWHG IBN LokmatNewsPrivate Limited Viacom18 MediaPrivate Limited received Expenditure forservices Wespro DigitalPrivate Limited Interest income VUHSUHVHQWVÀJXUHVIRUSUHYLRXV\HDU 1395)()(-) (-) (1,389.50) 2707)()(-) (-) (-) (-) (-) (2,700.76) (2,063.94) (-) (1,702.50) 1115)()(-) (-) (-) (-) (1,121.52) (6,069.05) 255)()(-) (-) (285.59) 497)()(-) (-) (489.78) 5.3 - (-) (-) (50.63) 1.0 - (-) (-) (18.70) - - (-) (-) (-) - - (0.25) (-) (-) - 1.8 (-) (17.08) (-) (-) (101.48) (-) - - (5.29) (-) (-) - - (21.88) (-) (-) - - (-) (-) (-) - - (-) (-) (-) - - (-) (-) (-) - - (-) (-) (-) - 642)(-) (664.28) (-) - - (-) (-) (-) - - (5.66) (-) (-) - 4.4 (-) (40.04) (-) --1.55 ------1.88 ------0.05 - - --- Annual Report 2015-16 Annual Report ------CONSOLIDATED ` inlakhs - - FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 ` in lakhs Particulars Jointly controlled entities Associates Fellow subsidiaries Prism TV Private Limited -- (-) (-) (-) Ubona Technologies Private Limited 13.13 - - (16.19) (-) (-) Ticket amount reimbursed Viacom18 Media Private Limited - - - (205.10) (-) (-) Ticket amount collected Viacom18 Media Private Limited - - - (241.35) (-) (-) Reimbursement of expenses (received) Wespro Digital Private Limited - - - (-) (8.88) (-) IBN Lokmat News Private Limited -- (484.51) (-) (-) Viacom18 Media Private Limited 5,336.90 - - (4,347.74) (-) (-) Indiacast Distribution Private Limited 19.52 - - (5.33) (-) (-) IndiaCast Media Distribution Private Limited 0.95 - - (40.56) (-) (-) Eenadu Television Private Limited - 0.22 - (-) (1.15) (-) 5HOLDQFH5HWDLO/LPLWHG -- (-) (-) (53.56) Prism TV Private Limited 1,201.89 - - (-) (-) (-) Reimbursement of expenses (paid) IBN Lokmat News Private Limited 8.22 - - (46.49) (-) (-) Viacom18 Media Private Limited -- (17,151.27) (-) (-) Indiacast Distribution Private Limited -- (5,693.79) (-) (-) IndiaCast Media Distribution Pvt Ltd -- (23.93) (-) (-) 5HOLDQFH5HWDLO/LPLWHG - - 0.11 (-) (-) (16.48) IndiaCast US Limited - - - (4.38) (-) (-) IndiaCast UK Limited -- (33.21) (-) (-) Eenadu Television Private Limited - - (-) (488.49) (-) ;/HDUQLQJV3ULYDWH/LPLWHG - 8.38 - (-) (-) (-) Prism TV Private Limited -- (-) (-) (-) Assets purchased 5HOLDQFH5HWDLO/LPLWHG - - 1.03 (-) (-) (3.75) Network18 Media & Investments Limited and other explanatory information fortheyearended31March2016 information and otherexplanatory 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV atclr onl otoldette soitsFellow subsidiaries Associates Jointlycontrolledentities 5HOLDQFH5HWDLO/LPLWHG Sale ofAssets Viacom18 MediaPrivate Limited Particulars icm8MdaPiaeLmtd ,2.0-- - 2,820.90 5HOLDQFH,QGXVWULHV/LPLWHG Prism TVPrivate Limited IBN LokmatNewsPrivate Limited Viacom18 MediaPrivate Limited Amount duefrom(Trade receivables) Balances outstandingattheyearend epoDgtlPiaeLmtd - - - Wespro DigitalPrivate Limited Collection onbehalfof niCs KLmtd531 - - 503.10 5HOLDQFH&RPPHUFLDO7UDGLQJ3ULYDWH/LPLWHG IndiaCast USLimited IndiaCast MediaDistributionPrivate Limited IndiaCast UKLimited Indiacast DistributionPrivate Limited eauTlvso rvt iie 125 - - - 152.58 ------9.15 - - 1.11 - - - Eenadu Television Private Limited - - IndiaCast MediaDistributionPrivate Limited Wespro DigitalPrivate Limited IBN LokmatNewsPrivate Limited Viacom18 MediaPrivate Limited Ubona Technologies Private Limited Amounts dueto Prism TVPrivate Limited Eenadu Television Private Limited IndiaCast MediaDistributionPrivate Limited IBN LokmatNewsPrivate Limited Viacom18 MediaPrivate Limited /RDQVDGYDQFHVUHFHLYDEOHDWWKH\HDUHQG 2,0.4 - (-) (-) (24,201.14) 3045)()(-) (-) (3,044.57) 582)()(-) (-) (-) (-) (508.27) (621.16) 8.4 - (-) (-) (82.94) 1.8 - (-) (-) (-) (-) (19.18) (37.55) 9.4 - (-) (-) (91.44) 21)()(-) (-) (2.10) 66)()(-) (-) (-) (-) (-) (-) (6.61) (-) (1.55) (-) (1.80) (3.35) 24)()(-) (-) (2.47) - - (-) (-) (-) - 327)(-) (332.78) (-) - - (43.10) (-) (-) - - (0.53) (-) (-) - (1.2 (-) (-) (217.82) (4.10) (-) (-) (-) (-) (-) (-) (60.00) (-) (-) (-) (-) ------16.03 - - Annual Report 2015-16 Annual Report ------CONSOLIDATED ` inlakhs FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 ` in lakhs Particulars Jointly controlled entities Associates Fellow subsidiaries Indiacast Distribution Private Limited -- (5,005.08) (-) (-) Prism TV Private Limited -- (-) (-) (-) 5HOLDQFH5HWDLO/LPLWHG - - 3.90 (-) (-) (-) Provision for doubtful advances Viacom18 Media Private Limited - - - (138.77) (-) (-) Income Accrued Viacom18 Media Private Limited - - - (2.34) (-) (-) Provision for expenses Viacom18 Media Private Limited - - - (234.80) (-) (-) IndiaCast UK limited - - - (15.17) (-) (-) 40.'HWDLOVRIIRUHLJQFXUUHQF\H[SRVXUHVWKDWDUHQRWKHGJHGE\GHULYDWLYHLQVWUXPHQWVLQHQWLWLHVZKHUHWKHUHSRUWLQJFXUUHQF\LVLQ5XSHHV ÀJXUHVLQEUDFNHWVUHSUHVHQWVÀJXUHVIRUSUHYLRXV\HDU Currency Payable in Rupee equivalent Receivable in Rupee equivalent foreign currency (` in lakhs) foreign currency (` in lakhs) United States Dollar (USD) 66,29,131 9,581.26 (86,83,976) (5,430.49) (59,50,213) (3,716.87) Pound (GBP) 1,61,062 153.25 (1,49,264) (138.27) (13,37,013) (1,241.68) (852 (15,247) (10.37) (12,083) (7.31) Australia Dollar (AUD) 1.22 2,00,599 (2,488) (1.21) (1,35,426) (65.11) Singapore Dollar (SGD) 11.16 (14,003) (6.35) (49,555) (22.55) Canada Dollar (CAD) 138.95 (-) (-) (4,88,194) (243.00) United Arab Emirates Dirham (AED) -- (4,10,389) (69.95) (-) (-) ,QGRQHVLDQ5XSLDK ,'5 - - 28,13,86,163 13.93 (-) (-) (24,21,30,000) (11.53) &KLQD Network18 Media & Investments Limited TheGroup’sinterestsinJointlyControlledEntities areasfollows: Interests inJointlyControlledEntities 41. Figuresinbracketsareforpreviousyear. fortheyearended31March2016 information and otherexplanatory 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV ,QFDVHRI79+RPH6KRSSLQJ1HWZRUN/LPLWHGFURVVFXUUHQF\I foreign currency andinterestratesrelatingtoforeignliabilities.Thefollowingareoutstandingderivativescontracts: foreign currency Uie ttsDla UD 13,28,505 UnitedStatesDollar(USD) on GP 1061.5-- - 10.55 11,096 Pound (GBP) niCs ei itiuinPiaeLmtdIda5%50% 50% India IndiaCast MediaDistributionPrivate Limited Prism TVPrivate Limited (wef1August2015) Viacom18 MediaPrivate Limited Ubona Technologies Private Limited IBN LokmatNewsPrivate Limited Name oftheentity equivalent Rupee Bank Description ofhedge United StatesDollar(USD) Currency Currency against letterofcredit 7RWDNHSURWHFWLRQDJDLQVWDSSUHFLDWLRQLQ,QGLDQ5XSHHVDJDLQV 82 (852 aaaDla CD - - Canada Dollar(CAD) Australia Dollar(AUD) ntdAa mrtsDra AD 28,6 3.0-- - 232.00 12,88,661 (AED) United ArabEmiratesDirham Singapore Dollar(SGD) Canada Dollar(CAD) United Arab Emirates Dirham (AED) United ArabEmiratesDirham ,QGRQHVLDQ5XSLDK ,'5 Loans andadvances and othercurrent assets inforeign ni 0 - 50% 50% 50% 50% 50% 50% 50% India India India India ofincorporation Country 30,620 14)()(-) (-) (1.44) (3,02,66,250) W86'SD\DEOHLQUHVSHFWRILPSRUWV (87,4)(,7.9 (61,3)(1,012.18) (16,17,135) (1,173.79) (18,79,140) 9,00,00,000 currency 1,2)(13)(8)(0.17) (188) (11.35) (12,223) 2,2)(72)()(-) (-) (17.29) (25,427) 6,6)(16)(7 (0.01) (27) (31.62) (65,764) 5,6)(53)(011 (6.19) (20,191) (25.32) (55,660) 4,2)(42)()(-) (-) (24.25) (48,722) 8,5)(38)(720 (8.04) (47,250) (13.81) (81,257) (-)(-) (-)(-) - - - (-) (-) (-) (-) (-)(-)(-)(-) RUZDUGFRQWUDFWLVXVHGWRKHGJHULVNVDVVRFLDWHGZLWKÁXFWXDWL Rupee equivalent( Rupee ( ` inlakhs) lakhs) 58 ,582103.52 1,55,882 95.80 32 - - 23.29 13.60 25.21 ` in Advance fromcustomer 31 March2016 Group’s share in foreigncurrency Amount inforeigncurrency(USD) Amount in Indian Rupees inlakhs Amount inIndianRupees Unbilled Revenue Rupee equivalent Rupee Unbilled Revenue 31 March2016 As at Annual Report 2015-16 Annual Report -- -- Rupee equivalent( Rupee CONSOLIDATED 31 March2015 31 March2015 Group’s share ( ` ` inlakhs) inlakhs lakhs) RQVLQ 10.60 86.92 As at 0.08 ` in FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 7KHÀQDQFLDOVWDWHPHQWVRIWKHMRLQWO\FRQWUROOHGHQWLWLHVKDYHEHHQLQFRUSRUDWHGLQWRWKHVHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWVXVLQJWKH proportionate consolidation method. The aggregate amounts relating to those jointly controlled entities are as follows: ` in lakhs Particulars 31 March 2016 31 March 2015 Current assets Non-current assets 30,016.12 Total assets 1,43,123.18 1,18,503.36 Current liabilities Non-current liabilities 10,633.93 Total liabilities 89,522.39 66,008.80 5HYHQXH 1,55,355.02 Expenses 3URÀWEHIRUHWD[ 12,891.97 13,712.17 Income tax expenses 3URÀWDIWHUWD[ 9,744.81 11,227.79 42. Barter transactions During the year ended 31 March 2016, the Group had entered into barter transactions, which were recorded at the fair value of consideration UHFHLYDEOHRUSD\DEOH7KHFRQVROLGDWHGVWDWHPHQWRISURÀWDQGORVVIRUWKH\HDU0DUFKUHÁHFWVUHYHQXHIURPEDUWHUWUDQVDFWLRQVRI `ODNKV SUHYLRXV\HDU` ODNKV DQGH[SHQGLWXUHRI`ODNKV SUHYLRXV\HDU`ODNKV EHLQJWKHIDLUYDOXHRI barter transactions provided and received. 43. During the previous years, Infomedia Press Limited has closed the printing press business and discontinued the printing operations. As at 31 March 2016, the carrying amount of such assets and liabilities of discontinuing operations which were not disposed off for previous year was ` 860.93 lakhs (previous year `ODNKV DQG` 639.59 lakhs (previous year ` ODNKV UHVSHFWLYHO\7KHIROORZLQJVWDWHPHQW shows the revenue and expenses of continuing and discontinuing operations: The following statement shows the revenue, expenses, assets and liabilities of discontinuing operation: ` in lakhs Continuing operations Discontinuing operations Total Year ended Year ended Year ended Particulars Year ended Year ended Year ended 31 March 31 March 31 March 31 March 31 March 31 March 2016 2015 2016 2015 2016 2015 Revenue 5HYHQXHIURPRSHUDWLRQV - - Other income 9,100.22 Total revenue 3,49,431.23 3,19,064.24 67.63 73.91 3,49,498.86 3,19,138.15 Expenses Cost of material consumed - - (PSOR\HHEHQHÀWVH[SHQVH 56,928.38 3.21 3.82 56,932.20 Other operating expenses 131.82 113.10 2,39,859.52 Depreciation and amortisation expense - - Finance costs - - Total expenses 3,40,723.10 3,16,079.90 135.03 116.92 3,40,858.13 3,16,196.82 Network18 Media & Investments Limited 44. fortheyearended31March2016 information and otherexplanatory 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV $GGLWLRQDO,QIRUPDWLRQDVUHTXLUHGXQGHU6FKHGXOH,,,WRWKH Joint Ventures. 2Panorama Television Private Limited 22 1Equator Trading EnterprisesPrivate Limited 21 0Greycells18 MediaLimited 20 3Prism TVPrivate Limited(upto31July2015) 23 19 Deferred tax Deferred taxexpense Current 3URÀW ORVV EHIRUHWD[ Prior perioditems Exceptional items Network18 Media&InvestmentsLimited Parent Name oftheentity Liabilities Assets 3URÀW ORVV IRUWKHSHULRG 3URÀW ORVV EHIRUHH[FHSWLRQDOLWHPVDQGWD[ Particulars 18 ColosceumMediaPrivate Limited 16 1 TV 18BroadcastLimited TV 1 Indian Subsidiaries 55.)LQKROG3ULYDWH/LPLWHG 15 3Capital18FincapPrivate Limited Private Limited Faintain Sports 13 12 10 Big Tree Entertainment Private BigTree Limited Entertainment 10 3 AETN18 MediaPrivate AETN18 Limited 3 2 1SpaceboundWeb labsPrivate Limited 11 9 Web 18 Software Services Limited Services Web 18 Software 9 8 Moneycontrol DotComIndiaLimited Moneycontrol 8 HomeShoppingNetworkLimited TV18 InfomediaPress Limited 6 5 55%,QYHVWPHQWV3ULYDWH/LPLWHG 5HHG,QIRPHGLD,QGLD3ULYDWH/LPLWHG Setpro18 DistributionLimited 597)LQKROG3ULYDWH/LPLWHG 5970HGLD3ULYDWH/LPLWHG e-Eighteen.com Limited Digital18 MediaLimited 25,7.4 22,9.9 695 9.7 25,1.3 2,27,391.76 2,51,116.83 5,70,069.16 697.37 6,00,364.92 851.44 639.59 860.93 2,26,694.39 2,50,477.24 5,69,217.72 5,99,503.99 Year ended otnigoeain Dsotnigoeain Total Discontinuingoperations Continuing operations 31 March 3973 (,2895) 6.0 (30) ,5.5(1,12,902.53) 3,859.95 (43.01) (1,09,004.73) 8,640.73 2,941.33 (67.40) (43.01) 8,640.73 (1,12,859.52) (43.01) 3,927.35 (67.40) (67.40) (1,08,961.72) 8,708.13 2,984.34 8,708.13 &RPSDQLHV$FWRIHQWHUSULVHVFRQVROLGDWHGDV6XEVLGLDU\ 2016 - - Year ended 31 March (5.6 - - - (358.86) Net Assetsi.e.totalassetsminus 2015 consolidated net assets As %of total liabilities -0.2% -0.6% -0.1% -0.2% -2.1% -0.8% -1.3% Year ended 2.9% 5.6% 0.0% 0.0% 0.5% 0.1% 0.9% 1.0% 0.0% 0.0% 0.0% 1.6% 31 March 2016 ( ------` Amount inlakhs) (,9.5 0.1% (1,992.05) 10,165.18 1522 -6.6% 1,522.26 (609.50) (6.5 0.1% (162.65) 316 1.2% 301.61 Year ended (.9 -0.3% (0.89) 31 March 11 0.0% 1.10 2015 consolidated SURÀWRUORVV As %of Annual Report 2015-16 Annual Report 6KDUHLQSURÀWRUORVV Year ended 31 March 6.%(9,096.10) 262.2% -9.2% -1.9% 0.5% 0.0% .%(3.01) 0.1% .%(303.60) 8.8% 0.1% 2016 CONSOLIDATED $VVRFLDWHV ( ` Amount inlakhs) Year ended 12,288.99 ` 31 March 1,903.68 (358.86) inlakhs 2015 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 Net Assets i.e. total assets minus 6KDUHLQSURÀWRUORVV total liabilities Name of the entity As % of Amount As % of Amount consolidated (` in lakhs) consolidated (` in lakhs) net assets SURÀWRUORVV Foreign 1 ibn18 (Mauritius) Limited -23.6% 2 Television Eighteen Mauritius Limited 2,522.13 -0.8% 3 Television Eighteen Media and Investments Limited 8.3% 18.2% Network 18 Holding Limited, Mauritius (292.92) 5 NW18 HSN Holdings PLC 15.2% -9.0% 313.51 6 E-18 Limited 8,392.98 -0.3% Web 18 Holdings Limited 6.6% 22,956.21 1.2% 8 Big Tree Entertainment Singapore PTE Limited 0.2% 663.12 0.0% (0.08) Minority Interest in all Subsidiaries Associates (as per the equity method) 1 Eenadu Television Private Limited 13.6% -12.1% 2 Book my show limited ,New Zealand 0.0% 12.32 3 ;/HDUQLQJ3ULYDWH/LPLWHG 0.0% - 0.0% - Aeon Learning Private Limited 0.0% - 0.0% - -RLQWO\&RQWUROOHG(QWLWLHV DVSHUSURSRUWLRQDWHFRQVROLGDWLRQLQYHVWPHQWDV per the equity method) Indian 1 IndiaCast Media Distribution Private Limited 0.2% 0.1% (5.09) 2 IBN Lokmat News Private Limited 0.2% -1.8% 3 Indiacast Distribution Private Limited (formerly Indiacast UTV Media 0.1% -2.6% Distribution Private Limited) Viacom18 Media Private Limited 15.5% 5 Prism TV Private Limited (wef 1 August 2015) 1.3% 6 Ubona Technologies Private Limited 0.2% 533.30 -2.1% Foreign 1 IndiaCast UK Limited 0.0% 135.01 -1.0% 33.53 2 IndiaCast US Limited 0.0% 92.86 -0.5% 18.83 3 Viacom18 Media (UK) Limited -0.1% (202.53) 0.0% Viacom18 US Inc -0.1% 0.2% 5 5RSWRQDO/LPLWHG 16,019.61 -2.6% 45. TV18 Home Shopping Network Limited is subject to the uplinking and downlinking guidelines issued by the Ministry of Information DQG%URDGFDVWLQJ ¶0,%· *RYHUQPHQWRI,QGLDDQGKDVREWDLQHGDSSURYDOIURP0,%GDWHG1RYHPEHUWRXSOLQNDQGGRZQOLQN ´+RPH6KRSµWHOHYLVLRQFKDQQHOIRUDSHULRGRIWHQDQGÀYH\HDUVUHVSHFWLYHO\7KHGRZQOLQNLQJOLFHQVHKDVEHHQIXUWKHUUHQHZHGWLOO November 2016. As at the end of the current year, the net worth of the TV18 Home Shopping Network Limited has fully eroded and the management of the TV18 Home Shopping Network Limited is in process of addressing the same. The management does not expect this to have any adverse impact on the operations of TV18 Home Shopping Network Limited. 46.)LJXUHVSHUWDLQLQJWRWKHVXEVLGLDULHVDVVRFLDWHVDQGMRLQWYHQWXUHVKDYHEHHQUHFODVVLÀHGZKHUHYHUQHFHVVDU\WREULQJWKHPLQOLQHZLWKWKH *URXS·VÀQDQFLDOVWDWHPHQWV 47.6LJQLÀFDQWDFFRXQWLQJSROLFLHVVWDWXWRU\DQGH[SODQDWRU\LQIRUPDWLRQRIWKH&RPSDQ\DQGLWVVXEVLGLDULHVDUHGLVFORVHGLQWKHUHVSHFWLYH VHSDUDWHÀQDQFLDOVWDWHPHQWV3ROLFLHVDQGLQIRUPDWLRQZKLFKKDYHPDWHULDOEHDULQJRQWKHWUXHDQGIDLUYLHZRIWKHFRQVROLGDWHGÀQDQFLDO VWDWHPHQWKDYHEHHQGLVFORVHGLQWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQW All loans, guarantees and securities as disclosed in respective notes are provided for business purposes. 180 Network18 Media & Investments Limited b Expenditure relatedtocorporatesocialresponsibilityis (b) D&65DPRXQWUHTXLUHGWREHVSHQWDVSHU6HFWLRQRIWKH D 51. 50. 49. # The detailsofamountsoutstanding tomicroandsmallenterprisesundertheMicro,SmallMediumEnterprisesDevelopmen 48. fortheyearended31March2016 information and otherexplanatory 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV Details of amountspentduringtheyearon: Prism ofEquatorTrading TVPrivate Limited(“Prism TV”)wasasubsidiary EnterprisesPrivate Limitedtill31July2015.Conse 'XULQJWKH\HDUHQWLUHVWDNHLQ6WDUJD]H(QWHUWDLQPHQW3ULYD Dues tosmallandmicroenterprises pursuanttosection22oftheMicro,SmallandMediumEnterprisesDevelopment(“MSMED”) A VXFKVDOHLVLQFOXGHGLQRWKHULQFRPH$FFRUGLQJO\ÀJXUHVRIW Corporate Social Responsibility (CSR) Corporate SocialResponsibility LQWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQW Jointly ControlledEntityeffective1August2015.Accordingly, effecthasbeengiventoassetsandliabilitiesofPrism TV, wh venture agreement,post-acquisitionof50%thePrism TV’sshareholdingbyNickelodeonAsiaHoldingsPteLtd,Prism TVhasbe year is Total Others Education Health Care Particulars disallowance asadeductibleexpenditureundersection23oftheMSMEDAct,2006. when theinterestduesasaboveareactuallypaidtosmallenterpriseforpurposeof interestremainingdueandpayableeveninthesucceedingyears,untilsuchdate Further andremainingunpaid Interest accrued MSMED Act,2006 EH\RQGWKHDSSRLQWHGGD\GXULQJWKH\HDU EXWZLWKRXWDGGLQJWK Interest dueandpayablefortheperiodofdelayinmakingpayment(whichhasbeenpaidbut day duringtheyear providersbeyondtheappointed amount ofthepaymentmadetosuppliersandservice ofSection16MSMEDAct,2006,alongwiththe Interest paidbytheCompanyinterms Interest duethereon Principal amountremainingunpaid with theGroup. ` ODNKV SUHYLRXV\HDU ` ODNKV WH/LPLWHGDVXEVLGLDU\RIWKH&RPSDQ\LVVROGDQGSURÀWRI ` ODNKV SUHYLRXV\HDU KHFXUUHQWSHULRGDUHQRWFRPSDUDEOHZLWKSUHYLRXV\HDU HLQWHUHVWVSHFLÀHGXQGHU &RPSDQLHV$FWUHDGZLWK6FKHGXOH9,,WKHUHRIE\WKHJURX ,QFDVKFKHTXHWUDQVIHU 8.55.5237.50 51.55 185.95 2.0-129.00 - 129.00 ` nil). 31 March2016 Yet tobepaid t Act, 2006 are as per available information t Act,2006areasperavailableinformation 181 23.06 168.18 51.55 Annual Report 2015-16 Annual Report ------` ODNKVRQ ich areincluded CONSOLIDATED 31 March2015 quent toajoint SGXULQJWKH ` ` ct 2006# inlakhs inlakhs come a Total 181 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 6XPPDU\RI6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV and other explanatory information for the year ended 31 March 2016 52. The accumulated losses of the Infomedia Press Limited have resulted in the erosion of its net worth. Infomedia has been legally advised that in view of closure of its printing operations, the provisions of Sick Industrial Companies (Special provisions) Act, 1985 are not applicable to it. 53.3UHYLRXV\HDU·VÀJXUHVKDYHEHHQUHJURXSHGUHFODVVLÀHGZKHUHYHUQHFHVVDU\WRFRQIRUPWRWKHFXUUHQW\HDU·VSUHVHQWDWLRQ For and on behalf of the Board of Directors of Network18 Media & Investments Limited For Walker Chandiok & Co LLP (formerly Walker, Chandiok & Co) Adil Zainulbhai 5RKLW%DQVDO Chartered Accountants Chairman Director )LUP·V5HJLVWUDWLRQ1R 11 ',1 ',1 per B P Singh Hariharan Mahadevan Yug Samrat Partner *URXS&KLHI)LQDQFLDO2IÀFHU Company Secretary 0HPEHUVKLS1R M No. FCS6118 Place : Noida Place : Mumbai Date : 20 April 2016 Date : 20 April 2016 182 Network18 Media & Investments Limited Form AOC-1 >3XUVXDQWWRÀUVWSURYLVRWRVXEVHFWLRQ RI6HFWLRQ UHDGZLWK5XOHRI&RPSDQLHV $FFRXQWV 5XOHV@ 6WDWHPHQWFRQWDLQLQJVDOLHQWIHDWXUHVRIWKHÀQDQFLDOVWDWHPHQWRIVXEVLGDLULHVDVVRFLDWHFRPSDQLHVMRLQWYHQWXUHV Part “A” : Subsidairies ` in lakhs Foreign curreny in million Sr Name of Subsidiary Company Reporting Share Capital Reserves & Total Assets Total Liabilities Investments Turnover 3URÀW%HIRUH Provision for 3URÀW$IWHU Proposed % of No. Currency Surplus Taxation Taxation Taxation Dividend Shareholding 1 TV 18 Broadcast Limited ,15 3,26,901.31 62,618.38 12,288.99 - 12,288.99 - 51.16% 2 ibn18 (Mauritius) Limited ,15 28,198.29 - - 25.28 - 51.16% USD 56.25 (6.89) - - 1.28 - 3 5970HGLD3ULYDWH/LPLWHG ,15 9.66 3,569.38 0.13 - - 51.16% AETN18 Media Private Limited ,15 - - - 26.09% 5 IBN Lokmat News Private Limited# ,15 - 58.39 (3.38) - 25.58% 6 Television Eighteen Mauritius Limited ,15 (5,633.15) 6,291.16 3,516.36 - - - 100.00% USD 12.30 5.68 5.30 - - - Television Eighteen Media and Investments Limited ,15 52,162.10 - - - 100.00% USD 80.02 36.53 - (0.95) - (0.95) - 8 Network18 Holdings Limited, Mauritius ,15 - (292.92) - (292.92) - 100.00% USD 1.50 (19.66) 62.35 80.51 13.90 - - - 9 Digital18 Media Limited ,15 5.00 1,250.95 - 2,366.31 (303.60) - (303.60) - 100.00% 10 Infomedia Press Limited ,15 903.58 - - - - 50.69% 11 NW18 HSN Holdings PLC ,15 56,918.68 56,888.95 - 109.68 313.51 - USD 85.81 5.92 - - 12 TV18 Home Shopping Network Limited ,15 - - - 13 e-Eighteen.com Limited ,15 8,621.20 3,162.06 3.20 - 91.95% Moneycontrol Dot Com India Limited ,15 5.00 (5.89) 6.06 6.95 - 15.96 8.16 - 91.95% 15 Web 18 Software Services Limited ,15 6.69 - 11.50 (3.01) - (3.01) - 100.00% 16 E-18 Limited ,15 8,255.10 10.05 - - 100.00% USD 0.21 0.02 8.21 - (0.03) 0.01 - Web 18 Holdings Limited ,15 311.53 11.38 22,208.95 - 2.66 - 100.00% USD 0.02 - (0.06) 0.00 (0.06) - 18 Big Tree Entertainment Private Limited ,15 8,590.83 6,925.09 23,593.69 - - 39.35% 19 Spacebound Web labs private Limited ,15 1.39 (39.66) - - - 22.09% 20 Faintain Sports Private Limited ,15 210.90 19.06 - (60.21) (18.06) - 21 Bigtree Entertainment Singapore Pte Limited ,15 663.20 (0.08) 663.12 (0.00) - - (0.08) - (0.08) - 39.35% USD 1.00 (0.00) 1.00 - - - (0.00) - (0.00) - 22 Capital18 Fincap Private Limited ,15 255.80 9,586.21 $QQXDO5HSRUW - 1,903.68 - 1,903.68 - 100.00% 23 55.)LQKROG3ULYDWH/LPLWHG ,15 1.00 (610.50) 619.23 - 0.25 - - 100.00% 597)LQKROG3ULYDWH/LPLWHG ,15 1.00 0.26 - - 100.00% 25 Colosceum Media Private Limited ,15 1,393.80 2,862.85 - 391.68 161.30 CONSOLIDATED - 100.00% 26 Setpro18 Distribution Limited ,15 (196.65) - - - - 100.00% 5HHG,QIRPHGLD,QGLD3ULYDWH/LPLWHG ,15 1,000.00 (998.90) 2.12 1.02 - - - - 100.00% 28 55%,QYHVWPHQWV3ULYDWH/LPLWHG ,15 201.00 (2,193.05) 2,831.88 2,806.82 - - - 100.00% 29 Greycells18 Media Limited ,15 1,163.80 (1,692.50) 600.58 1,129.29 - 380.01 - - 183 FINANCIAL STATEMENTS 67$78725<5(32576 &25325$7(29(59,(: % of in lakhs ` Shareholding - 51.16% - 51.16% - 25.58% - - 25.58% - - 25.58% - 25.58% - 25.58% Foreign curreny in million Foreign Dividend Proposed Taxation Taxation 3URÀW$IWHU - - - - 0.03 21.69 18.83 - Taxation Taxation Provision for 62.52 28.99 33.53 - (2.06) (93.52) 111.15 116.23 (5.09) - Taxation Taxation (2,168.92) 3URÀW%HIRUH ------(0.00) - (0.00) ------(0.01) - (0.01) - 18,356.99 1,56,296.38 5,656.35 238.51 18,036.11 - 3,839.69 98.95 16.86 0.02 - 0.02 (0.00) (0.10) 0.10 - 1,859.59 1,302.81 1,209.95 - 28,323.29 18,158.11 - Total Assets Total Liabilities Total Investments Turnover Surplus 1.18 1.66 2.69 16,016.91 22.80 28.53 250.00 20,000.00 (269.89) 1,56,302.31 Share Capital Reserves & ,15 ,15 ,15 ,15 ,15 ,15 ,15 ,15 ,15 ,15 GBP 0.03 0.11 1.96 1.81 - 5.23 GBP 0.00 (0.21) 0.25 GBP 0.00 USD 0.05 0.09 1.96 1.82 - 5.21 0.06 0.03 0.03 - USD 0.00 (0.59) 0.15 Currency 95.09 66.33, ` ` Name of Subsidiary Company Reporting IndiaCast UK Limited# Indiacast Distribution Private Limited (earlier Indiacast Indiacast Distribution Private Limited)# UTV Media Distribution Private Viacom18 Media (UK) Limited# Sr No. 30 Limited Enterprises Private Equator Trading 31 Limited Private Television Panorama 32 Limited## TV Private Prism 33 Limited# IndiaCast Media Distribution Private 35 IndiaCast US Limited# 36 38 Limited# Viacom18 Media Private 39 Viacom18 US Inc# 5RSWRQDO/LPLWHG ,15 # Considered 50% # Considered 5HIHUQRWHRI&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV 1GBP= As on 31.03.2016 : 1US$= Network18 Media & Investments Limited Part “B” : Associates and Joint Ventures Statement pursuant to Section 129 (3) of the Companies Act , 2013 related to Associate Companies and Joint Ventures ` in lakhs Sr. No. 1DPHRI$VVRFLDWHV-RLQW9HQWXUHV Latest 6KDUHVRI$VVRFLDWH-RLQW9HQWXUHVKHOGE\WKHFRPSDQ\ 3URÀW/RVVIRUWKH\HDU Description Reason audited on the year end of how there why the Balance No. Amount of Extend of Networth i. Considered i. Not LVVLJQLÀFDQW DVVRFLDWH Sheet Investment Holding % attributable to in Consolidation Considered LQÁXHQFH joint venture Date LQ$VVRFLDWHV Shareholding per in is not Joint latest audited Consolidation consolidated Venture Balance Sheet Associates 1 Eenadu Television Private Limited 31-03-2016 - 2 ;/HDUQLQJ3ULYDWH/LPLWHG 31-03-2016 - 3 Aeon Learning Private Limited* 31-03-2016 1,00,000 - 25.00% Book my show limited ,New Zealand 31-03-2016 2,600 26.00% 12.32 Joint Venture 1 Ubona Technologies Private Limited 31-03-2016 10,821 50.00% * the Company is holding the mentioned number of shares but the same has been written off and shown at Nominal value. For and on behalf of the Board of Directors of Network18 Media & Investments Limited Adil Zainulbhai 5RKLW%DQVDO Chairman Director ',1 ',1 Hariharan Mahadevan Yug Samrat Place : Mumbai *URXS&KLHI)LQDQFLDO2IÀFHU Company Secretary Date : 20 April 2016 M No. FCS6118 $QQXDO5HSRUW CONSOLIDATED 185 FINANCIAL STATEMENTS 67$78725<5(32576 &25325$7(29(59,(: Notice Notice is hereby given that the 21st Annual General Meeting of the Members 141, 142 and other applicable provisions, if any, of the Companies of Network18 Media & Investments Limited (“the Company”) will be Act, 2013 read with Companies (Audit and Auditors) Rules, held on Thursday, September 29, 2016 at 11.30 a.m. (IST) at Yashwant LQFOXGLQJ DQ\ VWDWXWRU\ PRGLÀFDWLRQ V WKHUHWR RU UH Natya Mandir, Manmala Tank Road, Matunga West, Near Ruparel College, enactment(s) thereof, for the time being in force), the appointment of Mumbai - 400 016, to transact the following businesses: M/s.Walker Chandiok & Co LLP, (ICAI Firm Registration No. 001076N/ N500013), Chartered Accountants, be and is hereby approved for the ORDINARY BUSINESS WHUPRI ÀYH FRQVHFXWLYH\HDUVWRKROGRIÀFHIURPWKHFRQFOXVLRQRI this Annual General Meeting till the conclusion of 26th Annual General 1. To consider and adopt: 0HHWLQJRIWKH&RPSDQ\VXEMHFWWRUDWLÀFDWLRQDWHYHU\VXEVHTXHQW D WKHDXGLWHGÀQDQFLDOVWDWHPHQWRIWKH&RPSDQ\IRUWKHÀQDQFLDO Annual General Meeting, with such remuneration as may be decided year ended March 31, 2016 and the reports of the Board of by the Board of Directors of the Company, from time to time.” Directors and Auditors thereon; and SPECIAL BUSINESS E WKHDXGLWHGFRQVROLGDWHGÀQDQFLDOVWDWHPHQWRIWKH&RPSDQ\IRU 4. To appoint Mr. Prasoon Joshi (DIN: 01260545) as an Independent WKHÀQDQFLDO\HDUHQGHG0DUFKDQGWKHUHSRUWRIWKH Director and in this regard, pass the following resolution as an Auditors thereon; Ordinary Resolution: and in this regard, pass the following resolutions as Ordinary “ RESOLVED THAT pursuant to the provisions of Sections 149 Resolutions: and 152 read with Schedule IV and other applicable provisions, if any, of the Companies Act, 2013 (‘the Act’) and the Companies (a) “ RESOLVED THAT WKH DXGLWHG ÀQDQFLDO VWDWHPHQW RI WKH $SSRLQWPHQWDQG4XDOLÀFDWLRQRI'LUHFWRUV 5XOHV LQFOXGLQJ &RPSDQ\IRUWKHÀQDQFLDO\HDUHQGHG0DUFKDQGWKH DQ\VWDWXWRU\PRGLÀFDWLRQ V RUUHHQDFWPHQW V WKHUHRIIRUWKHWLPH reports of the Board of Directors and Auditors thereon laid before EHLQJLQIRUFH DQG5HJXODWLRQRIWKH6HFXULWLHVDQG([FKDQJH this meeting, be and are hereby considered and adopted.” %RDUG RI ,QGLD /LVWLQJ 2EOLJDWLRQV DQG 'LVFORVXUH 5HTXLUHPHQWV Regulations, 2015, Mr. Prasoon Joshi (DIN: 01260545), who was (b) “ RESOLVED THAT WKH DXGLWHG FRQVROLGDWHG ÀQDQFLDO appointed as an Additional Director pursuant to the provisions of VWDWHPHQW RI WKH &RPSDQ\ IRU WKH ÀQDQFLDO \HDU HQGHG Section 161(1) and 149 of the Act and the Articles of Association March 31, 2016 and the report of the Auditors thereon of the Company and in respect of whom the Company has received laid before this meeting, be and are hereby considered a notice in writing under Section 160 of the Act, from a member and adopted.” SURSRVLQJKLVFDQGLGDWXUHIRUWKHRIÀFHRI'LUHFWRUEHDQGLVKHUHE\ appointed as an Independent Director of the Company, not liable to 2. To appoint a Director in place of Mr. Vinay Chand Chhajlani UHWLUHE\URWDWLRQWRKROGRIÀFHIRU ÀYH FRQVHFXWLYH\HDUVZLWK (DIN:00078665), who, retires by rotation and being eligible, has effect from January 15, 2016.” offered himself for re-appointment and in this regard, pass the following resolution as an Ordinary Resolution: 7R UDWLI\ WKH UHPXQHUDWLRQ RI WKH &RVW $XGLWRUV IRU WKH ÀQDQFLDO year ending March 31, 2017 and in this regard, pass the following “ RESOLVED THAT pursuant to the provisions of Section 152 of the resolution as an Ordinary Resolution: Companies Act, 2013, Mr. Vinay Chand Chhajlani (DIN:00078665), who retires by rotation at this Annual General Meeting and being “ RESOLVED THAT pursuant to the provisions of Section 148 and eligible has offered himself for re-appointment, be and is hereby other applicable provisions, if any, of the Companies Act, 2013 and re-appointed as a Director of the Company liable to retire by rotation.” the Companies (Audit and Auditors) Rules, 2014 (including any VWDWXWRU\ PRGLÀFDWLRQ V RU UHHQDFWPHQW V WKHUHRI IRU WKH WLPH 7RDSSRLQW$XGLWRUVDQGÀ[WKHLUUHPXQHUDWLRQDQGLQWKLVUHJDUGSDVV being in force), the remuneration of Rs. 2,50,000 (Rupees Two Lakhs the following resolution as an Ordinary Resolution: )LIW\ 7KRXVDQG RQO\ H[FOXGLQJ UHLPEXUVHPHQW RI RXW RI SRFNHW H[SHQVHVDQGDSSOLFDEOHWD[HVLIDQ\WKHUHRQDVDSSURYHGE\WKH “ RESOLVED THAT pursuant to the provisions of Sections 139, Board of Directors to be paid to M/s Pramod Chauhan & Associates, 186 Network18 Media & Investments Limited 2. A BLANKPROXY FORMISENCLOSED HEREWITHANDIF A MEMBERHOLDINGMORETHANTENPERCENTOFTHETOTAL 1. NOTES: “ . To approveofferorinvitationtosubscribeRedeemable Non- 6. electronic voting system and the Company is providing facility electronic voting system andtheCompanyisproviding facility The businessset outintheNoticewillbetransacted through HIS IDENTITYAT THETIME OFATTENDING THEMEETING. OF THEMEETING.HOLDER OFPROXY SHALLPROVE LESS THANFORTY-EIGHT HOURSBEFORETHECOMMENCEMENT DEPOSITED AT THEREGISTERED OFFICEOFTHECOMPANY NOT INTENDED TOBEUSED,THEFORMDULY COMPLETEDSHOULDBE SHALL NOTACTASAPROXY FORANYOTHERPERSONOR MEMBER. MAY APPOINTASINGLEPERSONASPROXY ANDSUCHPERSON SHARE CAPITAL OFTHECOMPANY CARRYING VOTINGRIGHTS THE COMPANY CARRYING VOTINGRIGHTS. MORE THANTENPERCENTOFTHETOTAL SHARECAPITAL OF (50)ANDHOLDINGINTHEAGGREGATEEXCEEDING FIFTY NOT PERSON CANACTASAPROXY ONBEHALFOFMEMBERSNOT AND THEPROXY NEEDNOTBEAMEMBEROFTHECOMPANY. A A PROXY TOATTEND ANDVOTEONAPOLLINSTEADOFHIMSELF GENERAL MEETING(“THEMEETING”)ISENTITLEDTOAPPOINT WRFRQGXFWDXGLWRIWKHFRVWUHFRUGV Registration No.000436),theCostAuditors, Cost Accountants(Firm A MEMBERENTITLEDTOATTEND ANDVOTEAT THE21 in oneormoreseries/tranches,aggregatingupto debentures, for secured/unsecuredredeemablenon-convertible Board ofDirectorstheCompanytoofferorinvitesubscriptions approval oftheMembersbeandisherebyaccordedtoauthorize ofAssociationtheCompany, to theprovisionsofArticles or re-enactment(s)thereof, forthetimebeinginforce)andsubject PRGLÀFDWLRQ V VWDWXWRU\ DQ\ LQFOXGLQJ 5XOHV 'HEHQWXUHV Securities) Rules, 2014andtheCompanies(ShareCapital Act, 2013readwiththeCompanies(Prospectus andAllotmentof 180(1)(c) andotherapplicableprovisions,ifany, oftheCompanies GHWHUPLQHDQGFRQVLGHUSURSHUDQGPRVWEHQHÀFLDOWRWKH&RPSDQ\ as theBoardofDirectorsCompanymay, fromtimetotime, andconditions placement, fromsuchpersonsandonterms Annual GeneralMeetingheldonSeptember30,2014,private limitsapprovedbytheMembersofCompanyat borrowing (Rupees onethousandcrore),inadditiontoandoverabovethe the followingresolutionasa Debenturesonprivateplacement andinthisregard,pass Convertible \HDUHQGLQJ0DUFKEHDQGLVKHUHE\UDWLÀHGµ RESOLVED THAT pursuant to the provisions of Sections 42, 71, pursuanttotheprovisionsofSections42,71, Special Resolution: RIWKH&RPSDQ\IRUWKHÀQD ` 1,000 crore 1,000crore st ANNUAL ANNUAL QFLDO Email id:[email protected] Website: www.network18online.com CIN: L65910MH1996PLC280969 T +912240019000,F66546925 Mumbai, Maharashtra,400013. Senapati BapatMarg,LowerParel, (PSLUH&RPSOH[)LUVW)ORRU 5HJLVWHUHG2IÀFH Place: Mumbai Date: July13,2016 Company Secretary Yug Samrat For By orderoftheBoardDirectors 3. 3. Corporate membersintending tosendtheirauthorised . ofSection152 oftheAct,Mr.In terms VinayChandChhajlani 4. Network18 Media&InvestmentsLimited and formattersconnectedtherewithorincidentalthereto.” PD\EHQHFHVVDU\SURSHURUH[SHGLHQWWRJLYHHIIHFWWRWKLVUH be andisherebyauthorizedtodoallactstakesuchstepsas RESOLVED FURTHERTHAT issue proceedsandallmattersconnectedwithorincidentalthereto; including butnotlimitedtotheissueprice,mannerofutilization UHSUHVHQWDWLYH V WRDWWHQGWKH0HHWLQJDUHUHTXHVWHGWRVHQGW separately alongwithacopyofthisNotice. user idandpasswordrelatingtoe-votingisbeingsentmembers includingdetailsof communication containingdetailedinstructions 2014. the Companies(ManagementandAdministration)Rules, voting systemwhichwillincluderemotee-votingasprescribedby for votingbyelectronicmeans(e-voting)throughan RSQD HWÀG UH R\ I KUOYQ%DG 5HVROXWLRQ %RDUG UHOHYDQW WKH RI FRS\ WUXH FHUWLÀHG D &RPSDQ\ Corporate Governance Report forming part ofthe AnnualReport. part forming Report Corporate Governance WKH RI SURYLVLRQV WKH XQGHU Listing Regulations andSecretarialStandards-2 areprovidedinthe GLVFORVHG EH WR UHTXLUHG DV GHWDLOV meetings oftheBoardattendedby himduringtheyearandother ofBoard Committees,numberof memberships /chairmanships areas, namesofcompaniesinwhich heholdsdirectorshipsand IXQFWL VSHFLÀF LQ H[SHUWLVH RI QDWXUH H[SHULHQFH TXDOLÀFDWLRQ eligible, offershimselfforre-appointment.Hisbriefresume,age, (DIN:00078665), Director, retiresbyrotationattheMeetingandbeing authorization toattendandvoteontheirbehalfattheMeeting. the representative(s)authorizedundersaidBoardResolution / other validauthorizationtogetherwiththespecimensignaturesof the Board of Directors of the Company theBoardofDirectorsCompany Annual Report 2015-16 Annual Report NOTICE VROXWLRQ RWKH RQDO 187 A FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW 5. A Statement pursuant to Section 102(1) of the Act, relating to the participant in securities market. Members holding shares in 6SHFLDO%XVLQHVVWREHWUDQVDFWHGDWWKH0HHWLQJLVDQQH[HGKHUHWR electronic form are, therefore, requested to submit their PAN to )XUWKHUWKHQDWXUHRIFRQFHUQRULQWHUHVWRI'LUHFWRUV0DQDJHU.H\ their DPs with whom they are maintaining their demat accounts. Managerial Personnel and their relatives in the proposed resolutions Members holding shares in physical form can submit their PAN to under Ordinary Business of the Notice, has also been disclosed the Company / Karvy. under the said Statement. 14. Members desirous of making a nomination in respect of their 0HPEHUV3UR[LHV $XWKRULVHG 5HSUHVHQWDWLYHV DUH UHTXHVWHG WR shareholding in the Company, in physical form, as permitted under bring to the meeting the necessary details of their shareholding, 6HFWLRQRIWKH$FWDUHUHTXHVWHGWRZULWHWR.DUY\&RPSDQ\·V attendance slip(s) and copy(ies) of their Annual Report. Registrars and Transfer Agents. In respect of the shareholding in demat form, please contact the respective DP, with whom the 7. In case of joint holders attending the Meeting, only such joint holder Member is having demat account. who is higher in the order of names will be entitled to vote at the Meeting. 15. Members who hold shares in physical form in multiple folios or joint DFFRXQWVLQWKHVDPHRUGHURIQDPHVDUHUHTXHVWHGWRVHQGWKHVKDUH 8. Relevant documents referred to in the Notice shall remain open FHUWLÀFDWHVWR.DUY\IRUFRQVROLGDWLRQLQWRDVLQJOHIROLR IRU LQVSHFWLRQ E\ WKH PHPEHUV DW WKH 5HJLVWHUHG 2IÀFH RI WKH Company and copies thereof shall also be available for inspection 1RQ5HVLGHQW,QGLDQPHPEHUVDUHUHTXHVWHGWRLQIRUP.DUY\'3V DWWKH&RUSRUDWH2IÀFHRIWKH&RPSDQ\RQDOOZRUNLQJGD\VH[FHSW of: Saturdays, (between 10.00 a.m. to 1.00 p.m.) up to the date of the a) Change in their residential status on return to India for permanent Meeting. Copies of such document shall also be made available for settlement. inspection at the Meeting. b) Particulars of their bank account maintained in India with complete name, branch, account type, account number and 7KH &RPSDQ\ KDV QRWLÀHG FORVXUH RI 5HJLVWHU RI 0HPEHUV address of the bank with pin code number, if not furnished and Share Transfer Books from September 26, 2016 to earlier. September 29, 2016 (both days inclusive) for the purpose of the Annual General Meeting. 17. Members who have not registered / updated their e-mail addresses with Karvy, if shares are held in physical form or with their DPs, 10. The Company’s Registrar and Transfer Agent for its share registry if shares are held in electronic form, are requested to register ERWKSK\VLFDODVZHOODVHOHFWURQLF LV.DUY\&RPSXWHUVKDUH3ULYDWH / update their e-mail address for receiving all communications /LPLWHG ´.DUY\µ KDYLQJLWVRIÀFHDW.DUY\6HOHQLXP7RZHU%3ORW including Annual Reports, Notices, Circulars, etc. from the 31-32, Gachibowli, Financial District, Nanakramguda, Hyderabad – Company electronically. 500 032 (Unit: Network18 Media & Investments Limited). &HUWLÀFDWHIURPWKH6WDWXWRU\$XGLWRUVRIWKH&RPSDQ\FHUWLI\LQJ 0HPEHUVKROGLQJVKDUHVLQHOHFWURQLFIRUPDUHUHTXHVWHGWRLQWLPDWH that the Employees’ Stock Option Plans of the Company have any change in their address or bank mandates to their Depository been implemented in accordance with the provisions of the Participants (DPs) with whom they are maintaining their demat applicable SEBI Guidelines and members resolution(s) shall be DFFRXQWV0HPEHUVKROGLQJVKDUHVLQSK\VLFDOIRUPDUHUHTXHVWHG placed before the Meeting. to advise any change in their address or bank mandates to the &RPSDQ\RU.DUY\ 7RSUHYHQWIUDXGXOHQWWUDQVDFWLRQVPHPEHUVDUHDGYLVHGWRH[HUFLVH due diligence and notify the Company of any change in address 12. Pursuant to the provisions of Investor Education and Protection Fund or demise of any member as soon as possible. Members are also (Uploading of information regarding unpaid and unclaimed amounts advised not to leave their demat account(s) dormant for long. Periodic lying with companies) Rules, 2012, the Company has uploaded the statement of holdings should be obtained from the concerned DP details of unpaid and unclaimed amounts lying with the Company as DQGKROGLQJVVKRXOGEHYHULÀHG on September 24, 2015 (date of last Annual General Meeting) on the website of the Company (www.network18online.com) and also on $WWHQGDQFH6OLS3UR[\)RUPDQGWKHURXWHPDSRIWKHYHQXHRIWKH the website of the Ministry of Corporate Affairs. 0HHWLQJLVDQQH[HGKHUHWRThe prominent landmark for the venue of the Meeting are Ruparel College and Star City Theatre. The 7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD 6(%, KDVPDQGDWHG venue is near to these landmarks. the submission of Permanent Account Number (PAN) by every 188 Network18 Media & Investments Limited FDQGLGDWXUHRI0U3UDVRRQ-RVKLIRUWKHRIÀFHRI'LUHFWRURIW WRWKH$FWDSSRLQWPHQWRIDQ,QGHSHQGHQW'LUHFWRUUHTXLUHVDSS In accordancewiththeprovisionsofSection149readScheduleIV director uptothedateofthisAnnualGeneralMeeting. WRDQ\RWKHU'LUHFWRURU.H\0DQDJHULDO3HUVRQQHORIWKH&RPSDQ He doesnotholdany sharesoftheCompanyinhisname. Heisnotrelated knowledge. WKHGHSRVLWRIUHTXLVLWHDPRXQWXQGHU6HFWLRQRIWKH$FWSU The Companyhasreceivedanoticeinwritingfrommemberalongwith Members oftheCompany. WKH&RPSDQ\ZHI-DQXDU\+HKROGVWKHRIÀFHDVDQD Prasoon JoshiasanAdditionalDirector(Independent)ontheBoardof ofAssociationtheCompany, appointed Mr.2015 andtheArticles RI,QGLD /LVWLQJ2EOLJDWLRQVDQG'LVFORVXUH5HTXLUHPHQWV 5HJX SURYLVLRQVRI6HFWLRQ RIWKH$FW6HFXULWLHVDQG([FKDQJ Committee, theBoardofDirectorsCompany, pursuanttothe Based ontherecommendationofNominationandRemuneration Item No.4 special businessmentionedintheaccompanyingNotice. The followingStatementsetsoutallmaterialfactsrelatingtothe 1 to3oftheNotice. ÀQDQFLDOO\RURWKHUZLVHLQWKHRUGLQDU\UHVROXWLRQVVHWRXWXQ 0DQDJHUL .H\ 'LUHFWRUV WKH RI Personnel orinterested, oftheCompany/theirrelativesisconcerned QRQH DERYH WKH H[FHSW DQG 6DYH Item No.2oftheNotice. tohisre-appointmentassetoutat Resolution pertaining in theOrdinary Mr VinayChandChhajlaniandhisrelativesmaybedeemedtointerested Item Nos1to3 ORDINARY BUSINESS IN RESPECTOFRESOLUTIONS PROPOSEDINTHE ACT, 2013(THE“ACT”) ANDDISCLOSURE OFINTERESTS PURSUANT TOSECTION102(1)OFTHECOMPANIES STATEMENT INRESPECTOFSPECIALBUSINESS I KPQJPQDG RVVHDSRUDH NOVH[SHULHQFH VNLOOV DSSURSULDWH SRVVHVVHV DQG PDQDJHPHQW WKH RI in theActandListingRegulations. Mr. Prasoon Joshiisindependent FRQGLWLRQVIRUKLVDSSRLQWPHQWDVDQ,QGHSHQGHQW'LUHFWRUDVVS 5HJXODWLRQV· ,QWKHRSLQLRQRIWKH%RDUG0U3UDVRRQ-RVKLI ¶/L 5HJXODWLRQV 5HTXLUHPHQWV 'LVFORVXUH DQG 2EOLJDWLRQV section (6)ofSection149theActandRegulation 16oftheSEBI (Listing that hemeetsthecriteriaofindependenceasprescribedundersub- Further, theCompany hasreceivedadeclarationfromMr. Prasoon Joshi Director. ofSection164theActandhasgivenhisconsenttoactasa in terms 0U3UDVRRQ-RVKLLVQRWGLVTXDOLÀHGIURPEHLQJDSSRLQWHGDVD GHU,WHP1RV KH&RPSDQ\ RSRVLQJWKH XOÀOOVWKH GGLWLRQDO \ H%RDUG 'LUHFWRU URYDORI ODWLRQV HFLÀHG VWLQJ DQG DO FRQFHUQHGRULQWHUHVWHGÀQDQFLDOO\RURWKHUZLVHLQWKHUHVROX Notice forapproval bythemembers. Resolution setoutatItemNo.5of the The Boardcommends theOrdinary RWKHUZLVH resolution setoutatItemNo.5ofthe Notice. RU ÀQDQFLDOO\ LQWHUHVWHG RU FRQFHUQHG DUH UHODWLYHV Notice forapprovalbythemembers. Resolution setoutatItemNo.4ofthe The BoardcommendstheOrdinary at ItemNo.4oftheNotice. 'LUHFWRUV.H\0DQDJHULDO3HUVRQQHORIWKH&RPSDQ\WKHLUUHO 1RQHRIWKH'LUHFWRUV.H\0DQDJHULDO3HUVRQQHORIWKH&RPSDQ\ Resolution assetoutatItemNo.5oftheNotice. by passinganOrdinary SD\DEOHWRWKH&RVW$XGLWRUVIRUWKHÀQDQFLDO\HDUHQGLQJ0DUFK $FFRUGLQJO\UDWLÀFDWLRQE\WKHPHPEHUVLVVRXJKWIRUWKHUHPXQ E\WKH%RDUGKDVWREHUDWLÀHGE\WKHPHPEHUVRIWKH&RPSDQ\ the CostAuditorsasrecommendedbyAuditCommitteeandapproved Companies (AuditandAuditors)Rules, 2014,theremunerationpayableto In accordancewiththeprovisionsofSection148Actread WD[HVDQGRXWRISRFNHWH[SHQVHVZKLFKVKDOOEHSDLGRQDFWXDO 6DYHDQGH[FHSW0U3UDVRRQ-RVKLDQGKLVUHODWLYHVQRQHRIWK PHPEHUVDWWKHUHJLVWHUHGRIÀFHFRUSRUDWHRIÀFHRIWKH&RPSDQ\ andconditionsisavailableforinspectionby Director settingouttheterms Copy oftheletterappointmentMr. Prasoon JoshiasanIndependent 2016. HQGLQJ0DUFKDVVHWRXWLQWKHUHVROXWLRQH[FOXGLQJD &RPSDQ\WRKROGRIÀFHIRU ÀYH FRQVHFXWLYH\HDUVZHI-DQX for appointmentofMr. Prasoon JoshiasanIndependentDirectorofthe Independent Director. Accordingly, theapprovalofmembersissought asan Company anditisdesirabletocontinueavailhisservices that theassociationofMr. Prasoon Joshiwillbeintheinterestof .HHSLQJLQYLHZKLVYDVWH[SHUWLVHDQGNQRZOHGJHWKH%RDUGFRQ oftheAnnualReport. part forming Report Corporate Governance of theListingRegulations andSecretarialStandards-2,areprovidedinthe WKH\HDUDQGRWKHUGHWDLOVDVUHTXLUHGWREHGLVFORVHGXQGHUWK Committees andnumberofmeetingstheBoardattendedbyhimduring ofBoard which heholdsdirectorshipsandmemberships/chairmanships QDWXUHRIKLVH[SHUWLVHLQVSHFLÀFIXQFWLRQDODUHDVQDPHVRIF FRQGXFWWKHDXGLWRIWKHFRVWUHFRUGVRIWKH&RPSDQ\IRUWKHÀQ Registration No.000436),asthe CostAuditorsto Cost Accountants(Firm the appointmentandremunerationofM/sPramod Chauhan&Associates, The Board,ontherecommendationofAuditCommittee,hasapproved Item No.5 UHUVPR0 UVR-VLKV J XOÀDLQH[SHU TXDOLÀFDWLRQ DJH KLV -RVKL 3UDVRRQ 0U RI UHVXPH %ULHI Annual Report 2015-16 Annual Report RPSDQLHVLQ HSURYLVLRQV WLRQVHWRXW DQFLDO\HDU EDVLV DWLYHVLV SSOLFDEOH NOTICE LWKH LQ DU\ HRWKHU HUDWLRQ WKHLU VLGHUV LHQFH 189 FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW Item No.6 This resolution enables the Board of Directors of the Company to offer The members of the Company had passed a Special Resolution, on RULQYLWHVXEVFULSWLRQIRUQRQFRQYHUWLEOHGHEHQWXUHVDVPD\EHUHTXLUHG September 28, 2015 by way of postal ballot, authorising the Board of by the Company, from time to time upto ` 1000 crore in addition to the Directors of the Company to offer or invite subscription for redeemable borrowing limit approved by the members on September 30, 2014 under non-convertible debentures, in one or more series/tranches, aggregating the provisions of Section 180(1)(c) of the Act. up to ` 1000 crore on private placement. The said resolution was valid and effective for one year from September 28, 2015. The members may note Accordingly, consent of the members is sought for passing a Special that the Board of Directors has not made any private placement pursuant Resolution as set out at Item No. 6 of the Notice. to said authorization. 1RQH RI WKH 'LUHFWRUV .H\ 0DQDJHULDO 3HUVRQQHO RI WKH &RPSDQ\ In order to augment long term resources, the Board of Directors may, at an WKHLUUHODWLYHVLVFRQFHUQHGRULQWHUHVWHGÀQDQFLDOO\RURWKHUZLVHLQWKH appropriate time, consider offering or inviting subscriptions for secured / resolution set out at Item No. 6 of the Notice. unsecured redeemable non-convertible debentures, in one or more series / tranches on private placement. Issuance of such debentures will be in The Board commends the Special Resolution set out at item No. 6 of the addition to the overall borrowing limits of ` 1800 crores as approved notice for approval by the Members. by the Members of the Company at the Annual General Meeting held on September 30, 2014. By order of the Board of Directors Section 71 and Section 42 of the Act, read with Rule 14 of the Companies For Network18 Media & Investments Limited (Prospectus and Allotment of Securities) Rules, 2014 deals with private placement of securities by a company. Rule 14 of the said Rules provides that Yug Samrat in case of an offer or invitation to subscribe for non-convertible debentures Company Secretary on private placement, the company shall obtain previous approval of its PHPEHUVE\PHDQVRIDVSHFLDOUHVROXWLRQ)XUWKHULWVKDOOEHVXIÀFLHQW Date: July 13, 2016 if the company passes a special resolution only once in a year for all the Place: Mumbai offers or invitations for such non-convertible debentures during the year. 5HJLVWHUHG2IÀFH Further, Section 180(1)(c) of the Act provides that the Board of Directors (PSLUH&RPSOH[)LUVW)ORRU FDQQRWH[FHSWZLWKWKHFRQVHQWRIWKH&RPSDQ\E\D6SHFLDO5HVROXWLRQ Senapati Bapat Marg, Lower Parel, borrow moneys together with the moneys already borrowed by the Mumbai, Maharashtra, 400 013. Company (apart from temporary loans obtained from the company’s T +91 22 4001 9000, F +91 22 6654 6925 EDQNHUVLQWKHRUGLQDU\FRXUVHRIEXVLQHVV LQH[FHVVRIWKHDJJUHJDWH CIN: L65910MH1996PLC280969 of the paid-up capital of the Company and its free reserves, that is to say Website: www.network18online.com UHVHUYHVQRWVHWDSDUWIRUDQ\VSHFLÀFSXUSRVH Email id: [email protected] Route Map Landmark 1) Ruparel College 2) Star City Theatre 190 Network18 Media & Investments Limited NETWORK18 MEDIA & INVESTMENTS LIMITED CIN - L65910MH1996PLC280969 5HJG2IÀFH )LUVW)ORRU(PSLUH&RPSOH[6HQDSDWL%DSDW0DUJ/RZHU3DUHO0XPEDL Tel: +91 22 4001 9000, Fax: +91 22 6654 6925 Email: [email protected] Website: www.network18online.com &RUS2IÀFH ([SUHVV7UDGH7RZHU3ORW1R6HFWRU$1RLGD8WWDU3UDGHVK,QGLDTel: +91 120 434 1818, Fax: +91 120 432 4107 ATTENDANCE SLIP 1DPHRIWKHVROHÀUVWQDPHGPHPEHU $GGUHVVRIWKHVROHÀUVWQDPHGPHPEHU Registered Folio No.: DP ID No./Client ID No.*: Number of shares held: I hereby record my presence at the 21st Annual General Meeting of the Company held on Thursday, September 29, 2016 at Yashwant Natya Mandir, Manmala Tank Road, Matunga West, Mumbai - 400 016 at 11.30 a.m. (IST). 6LJQDWXUHRI0HPEHU3UR[\SUHVHQW Note:0HPEHUVDUHUHTXHVWHGWRÀOOXSWKHDWWHQGDQFHVOLSDQGKDQGLWRYHUDWWKHYHQXHRIWKHPHHWLQJ *Applicable for investors holding shares in electronic form. NETWORK18 MEDIA & INVESTMENTS LIMITED CIN - L65910MH1996PLC280969 5HJG2IÀFH )LUVW)ORRU(PSLUH&RPSOH[6HQDSDWL%DSDW0DUJ/RZHU3DUHO0XPEDL Tel: +91 22 4001 9000, Fax: +91 22 6654 6925 Email: [email protected] Website: www.network18online.com &RUS2IÀFH ([SUHVV7UDGH7RZHU3ORW1R6HFWRU$1RLGD8WWDU3UDGHVK,QGLDTel: +91 120 434 1818, Fax: +91 120 432 4107 PROXY FORM [FORM NO. MGT-11, Pursuant to Section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies (Management and Administration) Rules, 2014] Name of member: Registered Address: E-mail Id: Folio No./ Client ID:* DP ID:* *Applicable for investors holding shares in electronic form. I/We being the member of (TXLW\6KDUHVRIWKHDERYHQDPHG&RPSDQ\KHUHE\DSSRLQW 1. Name: Address: E-mail Id: Signature: or failing him 2. Name: Address: E-mail Id: Signature: or failing him 3. Name: Address: E-mail Id: Signature: P. T. O . DVP\RXUSUR[\WRDWWHQGDQGYRWH RQDSROO IRUPHXVDQGRQP\RXUEHKDOIDWWKHst Annual General Meeting of the Company to be held on Thursday, September 29, 2016 at 11:30 a.m. (IST) at Yashwant Natya Mandir, Manmala Tank Road, Matunga West, Mumbai - 400 016 and at any adjournment thereof in respect of such resolutions as are indicated below: ,ZLVKP\DERYHSUR[\WRYRWHLQWKHPDQQHUDVLQGLFDWHGLQWKHER[EHORZ Item Resolutions Voting No. For Against 1. Consideration and adoption of : a) Audited Financial Statement for the Financial Year ended March 31, 2016 and the Reports of the Board of Directors and Auditors thereon b) Audited Consolidated Financial Statement for the Financial Year ended March 31, 2016 and the Report of the Auditors thereon 2. Re-appointment of Mr. Vinay Chand Chhajlani, a director retiring by rotation. 3. $SSRLQWPHQWRI0V:DONHU&KDQGLRN &R//3&KDUWHUHG$FFRXQWDQWDV6WDWXWRU\$XGLWRUVDQGÀ[LQJWKHLU remuneration 4. Appointment of Mr. Prasoon Joshi as an Independent Director 5. 5DWLÀFDWLRQRIWKHUHPXQHUDWLRQRIWKH&RVW$XGLWRUIRUWKH)LQDQFLDO Signed this day of 2016 $IÀ[ ` 1 Signature of Shareholder Revenue Stamp 6LJQDWXUHRI3UR[\+ROGHU V 2.) 3.) Notes: 7KLVIRUPRISUR[\LQRUGHUWREHHIIHFWLYHVKRXOGEHGXO\FRPSOHWHGDQGGHSRVLWHGDWWKH5HJLVWHUHG2IÀFHRIWKH&RPSDQ\QRWOHVVWKDQKRXUVEHIRUH the commencement of the meeting. (2) A Proxy need not be a member of the Company and shall prove his/her identity at the time of attending the meeting. $SHUVRQFDQDFWDVDSUR[\RQEHKDOIRIPHPEHUVQRWH[FHHGLQJÀ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ÀFLHQWEXWQDPHVRIDOOWKHMRLQWKROGHUVVKRXOGEHVWDWHG 7KLVIRUPRISUR[\VKDOOEHVLJQHGE\WKHDSSRLQWHURUKLVDWWRUQH\GXO\DXWKRUL]HGLQZULWLQJRULIWKHDSSRLQWHULVDERG\FRUSRUDWHEHXQGHULWVVHDORUEH VLJQHGE\DQRIÀFHURUDQDWWRUQH\GXO\DXWKRUL]HGE\LW 7KLVIRUPRISUR[\ZLOOEHYDOLGRQO\LILWLVGXO\FRPSOHWHLQDOOUHVSHFWVSURSHUO\VWDPSHGDQGVXEPLWWHGDVSHUWKHDSSOLFDEOHODZ,QFRPSOHWHIRUPRUIRUPZKLFK UHPDLQVXQVWDPSHGRULQDGHTXDWHO\VWDPSHGRUIRUPXSRQZKLFKWKHVWDPSVKDYHQRWEHHQFDQFHOOHGZLOOEHWUHDWHGDVLQYDOLG 8QGDWHGSUR[\IRUPZLOOQRWEHFRQVLGHUHGYDOLG ,I&RPSDQ\UHFHLYHVPXOWLSOHSUR[LHVIRUWKHVDPHKROGLQJVRIDPHPEHUWKHSUR[\ZKLFKLVGDWHGODVWZLOOEHFRQVLGHUHGYDOLG LIWKH\DUHQRWGDWHGRUEHDU WKHVDPHGDWHZLWKRXWVSHFLÀFPHQWLRQRIWLPHDOOVXFKPXOWLSOHSUR[LHVZLOOEHWUHDWHGDVLQYDOLG /RZHU3DUHO0XPEDL 6HQDSDWL%DSDW0DUJ 5HJG2IÀFH )LUVW)ORRU(PSLUH&RPSOH[ CIN -L65910MH1996PLC280969 Network18 Media&Investments Limited concept, content and design at ([email protected])