ANNUAL REPORT 2016 - 2017
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BOARD OF DIRECTORS REGISTERED OFFICE : No.14, Jayammal Road, Teynampet, Chennai - 600018 R. RADIKAA SARATHKUMAR Tel: +91 - 44 - 2431 3001 Chairperson & Managing Director Fax: +91 - 44 - 2431 3008 :HEVLWH ZZZUDGDDQWY_(PDLO LQIR#UDGDDQWY R. SARATHKUMAR Director - Operations STATUTORY AUDITORS : &1*61 $662&,$7(6//3 Chartered Accountants "Agastyar Manor" A. KRISHNAMOORTHY New No. 20, Old No. 13, Director Raja Street, T. Nagar, Chennai - 600 017.
INTERNAL AUDITORS : J. KRISHNA PRASAD A J Deora & Associates Director Chartered Accountants 6),,QG)ORRU *ROGHQ(QFODYH V. SELVARAJ 1R3RRQDPDOOHH+LJK5RDG Director Chennai - 600 010. LEGAL ADVISOR : +DULVKDQNDU0DQL$GYRFDWH 1HZ1R)LUVW)ORRU/X]&KUXFK5RDG Mylapore, Chennai - 600 004.
BANKERS : M KAVIRIMANI ,QGLDQ2YHUVHDV%DQN &KLHI)LQDQFLDO2I¿FHU Saidapet, Chennai - 600 015.
K C SAHU &DQDUD%DQN Habibullah Road, Chennai - 600 017. Company Secretary REGISTRARS & SHARE TRANSFER AGENT : SUBHAA VENKAT &DPHR&RUSRUDWH6HUYLFHV/LPLWHG &KLHI2SHUDWLQJ2I¿FHU&UHDWLYH 6XEUDPDQLDQ%XLOGLQJ9WK)ORRU No. 1, Club House Road, Chennai - 600 002. R RAYANE 3K OLQHV Head - New Media )D[ *UDPV &$0(2 (0DLO FDPHR#FDPHRLQGLDFRP
CONTENTS
Notice to the Shareholders 3 Standalone Financial Statement 33 Directors' Report 6 Auditors’ Report on Consolidated Financial Statement 49 Management Discussion and Analysis 17 Consolidated Financial Statement 52 Report on Corporate Governance 22 Proxy Form 63 Auditors' Report on Standalone Financial Statement 29 Attendance Slip 65
1 ANNUAL REPORT 2016 - 2017
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Mrs. R.Radikaa Sarathkumar
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She is a degree holder in Home Science. She has remained well reputed actor throughout her career spanning PRUHWKDQWKUHHGHFDGHV6KHLVRQHRIWKHVHOHFWIHZZKRKDYHPDGHERWK¿OPDQGWHOHYLVLRQFDUHHUVYHU\ VXFFHVVIXO6KHKDVDFWHGLQPRUHWKDQ¿OPVDQGDQXPEHURISULPHWLPHWHOHYLVLRQVHULDOV6KHKDVZRQ PDQ\DZDUGVLQFOXGLQJ1DWLRQDO$ZDUG)LOP)DUH$ZDUGV7DPLO1DGX6WDWH*RYHUQPHQW$ZDUG0DOD\VLDQ)LOP$VVRFLDWLRQ$ZDUG DQGVHYHUDORWKHUVIRUDFWLQJDQGIRUKHUFRQWULEXWLRQWRWKHLQGXVWU\
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Mr. R. Sarathkumar
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Mr.Sarathkumar has been hands-on in the operational management of the company, controlling on day-to-day DIIDLUVRSHUDWLRQDOHI¿FLHQF\+HKDVHDUOLHUEHHQD+RQRXUDEOH0HPEHURI3DUOLDPHQW+HKDVDOVREHHQDPHPEHURIWKH7DPLO1DGX /HJLVODWLYH$VVHPEO\IRUWKHWHUP
Mr. A.Krishnamoorthy
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Mr.J.Krishnaprasad
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Mr. V.Selvaraj
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2 ANNUAL REPORT 2016 - 2017
RADAAN MEDIAWORKS INDIA LIMITED &,1 / 71 3/& 5HJLVWHUHG2I¿FH 1R-D\DPPDO5RDG7H\QDPSHW&KHQQDL 7HO _)D[ _(PDLO LQIR#UDGDDQWY_:HEVLWH ZZZUDGDDQWY NOTICE TO THE SHAREHOLDERS 1RWLFHLVKHUHE\JLYHQWKDWWKH(LJKWHHQWK$QQXDO*HQHUDO0HHWLQJRIWKHFRPSDQ\ZLOOEHKHOGRQ6DWXUGD\WKHth September 2017 DWDPDW0DGUDV5DFH&OXE*XLQG\/RGJH&KHQQDLWRWUDQVDFWWKHIROORZLQJEXVLQHVV 25',1$5<%86,1(66 7RUHFHLYHFRQVLGHUDQGDGRSWWKH$XGLWHG)LQDQFLDO6WDWHPHQWVRIWKH&RPSDQ\RQVWDQGDORQHDQGFRQVROLGDWHGEDVLVIRUWKH ¿QDQFLDO\HDUHQGHGst0DUFKDQGLQWKLVUHJDUGWRFRQVLGHUDQGLIWKRXJKW¿WWRSDVVZLWKRUZLWKRXWPRGL¿FDWLRQWKH IROORZLQJUHVROXWLRQDVDQ25',1$5<5(62/87,21 5(62/9(' 7+$7 WKH$XGLWHG )LQDQFLDO 6WDWHPHQWV RI WKH &RPSDQ\ RQ VWDQGDORQH DQG FRQVROLGDWHG EDVLV IRU WKH ¿QDQFLDO year ended 31st0DUFKLQFOXGLQJWKH%DODQFH6KHHWDVDWst0DUFK3UR¿W /RVV6WDWHPHQW&DVK)ORZ6WDWHPHQWIRU WKH¿QDQFLDO\HDUHQGHGRQWKDWGDWHDQGWKH$XGLWRUV5HSRUWDQGWKH%RDUGRI'LUHFWRUV5HSRUWWKHUHRQEHDQGDUHKHUHE\UHFHLYHG considered and adopted. 7RDSSRLQWDGLUHFWRULQSODFHRI0U5DPDQDWKDQ6DUDWKNXPDU ',1 ZKRUHWLUHVE\URWDWLRQDQGEHLQJHOLJLEOHRIIHUV KLPVHOI IRU UHDSSRLQWPHQW DQG LQ WKLV UHJDUG WR FRQVLGHU DQG LI WKRXJKW ¿W WR SDVV ZLWK RU ZLWKRXW PRGL¿FDWLRQ WKH IROORZLQJ UHVROXWLRQDVDQ25',1$5<5(62/87,21 5(62/9('7+$70U5DPDQDWKDQ6DUDWKNXPDU ',1 UHWLULQJE\URWDWLRQEHDQGLVKHUHE\UHDSSRLQWHGDV'LUHFWRU of the company. 7R DSSRLQW DXGLWRUV DQG LQ WKLV UHJDUG WR FRQVLGHU DQG LI WKRXJKW ¿W WR SDVV ZLWK RU ZLWKRXW PRGL¿FDWLRQ WKH IROORZLQJ UHVROXWLRQDVDQ25',1$5<5(62/87,21 5(62/9(' WKDW SXUVXDQW WR WKH SURYLVLRQV RI VHFWLRQ DQG RWKHU DSSOLFDEOH SURYLVLRQV LI DQ\ RI WKH &RPSDQLHV $FW ³$FW´ DQGWKH5XOHVIUDPHGWKHUHXQGHUDVDPHQGHGIURPWLPHWRWLPH066569 $VVRFLDWHV&KDUWHUHG$FFRXQWDQWV )LUP 5HJLVWUDWLRQ 1R 6 EH DQG DUH KHUHE\ DSSRLQWHG DV$XGLWRUV RI WKH &RPSDQ\ WR KROG RI¿FH IURP WKH FRQFOXVLRQ RIWKLV$QQXDO*HQHUDO0HHWLQJ ³$*0´ WLOOWKHFRQFOXVLRQRIWKHWZHQW\WKLUG$*0RIWKH&RPSDQ\WREHKHOGLQWKH\HDU VXEMHFWWRUDWL¿FDWLRQRIWKHLUDSSRLQWPHQWDWHYHU\$*0LIVRUHTXLUHGXQGHUWKH$FW DWVXFKUHPXQHUDWLRQDVPD\EHPXWXDOO\ DJUHHGEHWZHHQWKH%RDUGRI'LUHFWRUVRIWKH&RPSDQ\DQGWKH$XGLWRUV %\2UGHURIWKH%RDUG )RU5DGDDQ0HGLDZRUNV,QGLD/LPLWHG Date: 29th August 2017 -Sd- 5HJLVWHUHGRI¿FH .$1+8&+$5$16$+8 No.14,Jayammal Road,Teynampet Company Secretary Chennai-600 018 127(6 $0(0%(5(17,7/('72$77(1'$1'927(,6(17,7/('72$332,17$352;<72$77(1'$1'927(,167($'2) +,06(/)$1'7+(352;<1(('127%($0(0%(52)7+(&203$1<7KHLQVWUXPHQWDSSRLQWLQJWKHSUR[\LQRUGHUWR EHHIIHFWLYHPXVWEHGHSRVLWHGZLWKWKH&RPSDQ\QRWOHVVWKDQ)257<(,*+7+2856EHIRUHFRPPHQFHPHQWRIWKH0HHWLQJ 3UR[LHV VXEPLWWHG RQ EHKDOI RI OLPLWHG FRPSDQLHV VRFLHWLHV HWF PXVW EH VXSSRUWHG E\ DSSURSULDWH UHVROXWLRQVDXWKRULW\ DVDSSOLFDEOH$SHUVRQFDQDFWDVSUR[\RQEHKDOIRI0HPEHUVQRWH[FHHGLQJ¿IW\ DQGKROGLQJLQWKHDJJUHJDWHQRWPRUH than 10% of the total share capital of the Company. In case a proxy is proposed to be appointed by a Member holding more than RIWKHWRWDOVKDUHFDSLWDORIWKH&RPSDQ\FDUU\LQJYRWLQJULJKWVWKHQVXFKSUR[\VKDOOQRWDFWDVDSUR[\IRUDQ\RWKHUSHUVRQ or shareholder. 2. The Register of Members and the Share Transfer books of the company will remain closed from 24th September 2017 to 30th 6HSWHPEHU ERWKGD\VLQFOXVLYH &RUSRUDWHPHPEHUVLQWHQGLQJWRVHQGWKHLUDXWKRUL]HGUHSUHVHQWDWLYHVDUHUHTXHVWHGWRVHQGDGXO\FHUWL¿HGFRS\RIWKH%RDUG 5HVROXWLRQDXWKRUL]LQJVXFKUHSUHVHQWDWLYHVWRDWWHQGDQGYRWHDWWKH$QQXDO*HQHUDO0HHWLQJ ,QWKHFDVHRI-RLQWKROGHUVDWWHQGLQJWKHPHHWLQJRQO\VXFKMRLQWKROGHUZKRLVKLJKHULQRUGHURIQDPHVZLOOEHHQWLWOHGWRYRWH $OO GRFXPHQWV UHIHUUHG WR LW LQ WKH DFFRPSDQ\LQJ 1RWLFH DUH DYDLODEOH IRU LQVSHFWLRQ E\ WKH PHPEHUV DW WKH UHJLVWHUHG RI¿FH RIWKHFRPSDQ\RQDOOZRUNLQJGD\VEHWZHHQDPDQGSPDQGSPWRSP H[FHSW6DWXUGD\ SULRUWRWKH date of the Meeting. 6. The Notice of the AGM along with the Annual Report 2016-17 is being sent by electronic mode to those Members whose HPDLODGGUHVVHVDUHUHJLVWHUHGZLWKWKH&RPSDQ\'HSRVLWRULHVXQOHVVDQ\0HPEHUKDVUHTXHVWHGIRUDSK\VLFDOFRS\RIWKH VDPH)RU0HPEHUVZKRKDYHQRWUHJLVWHUHGWKHLUHPDLODGGUHVVHVSK\VLFDOFRSLHVDUHEHLQJVHQWE\WKHSHUPLWWHGPRGH 7RVXSSRUWWKHµ*UHHQ,QLWLDWLYH¶WKH0HPEHUVZKRKDYHQRWUHJLVWHUHGWKHLUHPDLODGGUHVVHVDUHUHTXHVWHGWRUHJLVWHUWKHVDPH ZLWKWKH&RPSDQ\¶V57$0V&DPHR&RUSRUDWH6HUYLFHV/LPLWHG'HSRVLWRULHV 7KHURXWHPDSVKRZLQJGLUHFWLRQVWRWKHYHQXHRIWKHPHHWLQJLVDQQH[HG
NOTICE OF ANNUAL GENERAL MEETING 3 ANNUAL REPORT 2016 - 2017
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4 NOTICE OF ANNUAL GENERAL MEETING ANNUAL REPORT 2016 - 2017
[Y 2QFH\RX³&21),50´\RXUYRWHRQWKHUHVROXWLRQ\RXZLOOQRWEHDOORZHGWRPRGLI\\RXUYRWH [YL NOTICE OF ANNUAL GENERAL MEETING 5 ANNUAL REPORT 2016 - 2017 DIRECTORS’ REPORT Dear Shareholders, 7KHGLUHFWRUVVXEPLWDQQXDOUHSRUWRI5DGDDQ0HGLDZRUNV,QGLD/LPLWHG WKH³&RPSDQ\´RU³5DGDDQ´ DORQJZLWKWKHDXGLWHG¿QDQFLDO VWDWHPHQWVIRUWKH¿QDQFLDO\HDUHQGHGst0DUFK&RQVROLGDWHGSHUIRUPDQFHRIWKH&RPSDQ\KDVEHHQUHIHUUHGWRZKHUHYHU UHTXLUHG Financial Performance: 6XPPDU\¿QDQFLDOSHUIRUPDQFHRIWKH&RPSDQ\LVSURYLGHGEHORZDQGDPRUHGHWDLOHGUHSRUWVWDWHRILW¶VDIIDLUVDUHLQFOXGHGLQWKH Management Discussion and Analysis: 5VLQ/DNKV Standalone Consolidated Particulars 2016-17 2015-16 2016-17 2015-16 5HYHQXHIURP2SHUDWLRQ 3080.71 3239.96 3080.71 3239.96 Other income 2.93 13.32 2.93 13.32 Operating expenditure 2842.31 2967.48 2843.84 2969.41 Finance cost 109.41 128.30 109.41 128.47 'HSUHFLDWLRQDQGDPRUWL]DWLRQ([SHQVHV 51.15 62.56 51.15 62.56 3UR¿W /RVV EHIRUH7D[ 80.77 94.94 79.24 92.84 7D[H[SHQVHVSURYLVLRQV 4.92 4.92 1HW3UR¿W /RVV 80.91 90.02 79.38 87.92 Dividends: 7KHHDUQLQJVDUHUHGHSOR\HGLQRSHUDWLRQDQGQRGLYLGHQGLVUHFRPPHQGHGIRUWKH¿QDQFLDO\HDUHQGHGst March 2017. Public Deposits: The company has not accepted any deposit from public and as such, there is no default in repayment during the year and no amount on account of public deposits was outstanding as on the date of balance sheet. Subsidiary Company: $VRQFORVLQJRIWKHUHSRUWLQJ¿QDQFLDO\HDUWKHFRPSDQ\KDVRQO\RQHVXEVLGLDU\5DGDDQ0HGLD9HQWXUH3WH/WG6LQJDSRUH7KHUH DUHQRDVVRFLDWHFRPSDQLHVZLWKLQWKHPHDQLQJRI6HFWLRQ RIWKH&RPSDQLHV$FW ³$FW´ 7KHUHKDVEHHQQRPDWHULDOFKDQJH in the nature of the business of the subsidiary. 7KHUHZDVQRFRPPHUFLDODFWLYLW\LQWKHVXEVLGLDU\FRPSDQ\GXULQJWKHUHSRUWLQJSHULRGKRZHYHUFHUWDLQHVWDEOLVKPHQWFRVWZHUH LQFXUUHG UHVXOWLQJ LQWR 1HW /RVV $ VWDWHPHQW FRQWDLQLQJ VDOLHQW IHDWXUHV RI WKH ¿QDQFLDO VWDWHPHQWV RI WKH VXEVLGLDU\ FRPSDQ\ KLJKOLJKWLQJLW¶VSHUIRUPDQFHVDQG¿QDQFLDOSRVLWLRQGXULQJWKH\HDULVSURYLGHGEHORZ D Name of the subsidiary 5DGDDQ0HGLD9HQWXUHV3WH/WG E 5HSRUWLQJ3HULRG 01-04-2016 to 31-03-2017 5HSRUWLQJFXUUHQF\DQGH[FKDQJHUDWHDVRQWKHODVWGDWHRIWKHUHOHYDQW¿QDQFLDO F Sing $ / Rs.46.3062 year G 3HUFHQWRIVKDUHKROGLQJ 100% LQ6LQJ LQ5V H Share Capital 20,000 9,26,124 I 5HVHUYHV 6XUSOXV J Total Assets 1,000 46,306 K 7RWDO/LDELOLWLHV 41,980 19,43,934 L ,QYHVWPHQWV ------M 7XUQRYHU ------N 3UR¿WEHIRUHWD[DWLRQ O 3URYLVLRQIRUWD[DWLRQ ------P 3UR¿WDIWHUWD[DWLRQ Q 3URSRVHGGLYLGHQG ------ 7KHDXGLWHGDFFRXQWVRIWKHVXEVLGLDU\DUHDYDLODEOHRQFRPSDQ\¶VZHEVLWHDQGFRS\VKDOOEHSURYLGHGWRVKDUHKROGHUVZKRDVNIRULW 3ROLF\IRUGHWHUPLQLQJPDWHULDOVXEVLGLDULHVRIWKH&RPSDQ\LVDOVRDYDLODEOHRQWKHZHEVLWHRIWKH&RPSDQ\ 6 DIRECTOR’S REPORT ANNUAL REPORT 2016 - 2017 Directors and key managerial personnel: $V SHU WKH SURYLVLRQV RI WKH &RPSDQLHV$FW ³$FW´ 0U$UXQDFKDODP .ULVKQDPRRUWK\ ',1 0U-DQDUGDQ .ULVKQD 3UDVDG ',1 0U9HOOD\DQ6HOYDUDM ',1 ZHUHDSSRLQWHGDVLQGHSHQGHQWGLUHFWRUVDWWKHDQQXDOJHQHUDOPHHWLQJ RI WKH &RPSDQ\ KHOG RQ WK 6HSWHPEHU 7KH WHQXUH RI VXFK DSSRLQWPHQW ZDV IRU ¿YH \HDUV 7KH WHUPV DQG FRQGLWLRQV RI DSSRLQWPHQWRILQGHSHQGHQWGLUHFWRUVDUHDVSHU6FKHGXOH,9RIWKH$FWVDPHLVDYDLODEOHLQWKHZHEVLWHRIWKHFRPSDQ\7KH\KDYH VXEPLWWHGGHFODUDWLRQWKDWHDFKRIWKHPPHHWVWKHFULWHULDRILQGHSHQGHQFHDVSURYLGHGLQVHFWLRQ RIWKH$FWDQG6HFXULWLHVDQG ([FKDQJH%RDUGRI,QGLD /LVWLQJ2EOLJDWLRQVDQG'LVFORVXUH5HTXLUHPHQWV 5HJXODWLRQV ³6(%,/LVWLQJ5HJXODWLRQV´ DQGWKHUH has been no change in the circumstances which may affect their status as independent director during the year. 0U5DPDQDWKDQ6DUDWKNXPDU ',1 UHWLUHVE\URWDWLRQDQGEHLQJHOLJLEOHKDVRIIHUHGKLPVHOIIRUUHDSSRLQWPHQW 'XULQJWKH\HDUWKHQRQH[HFXWLYHGLUHFWRUVRIWKHFRPSDQ\KDGQRSHFXQLDU\UHODWLRQVKLSRUWUDQVDFWLRQZLWKWKH&RPSDQ\ Composition of the board of directors and committees thereof, including the Audit Committee, the Nomination and Remuneration Committee, the Stakeholders Relationship Committee and the details of meeting of the board and the committees are discussed fully LQWKHFRUSRUDWHJRYHUQDQFHUHSRUW &RPSDQ\¶V SROLF\ RQ GLUHFWRUV¶ DSSRLQWPHQW DQG UHPXQHUDWLRQ DQG RWKHU PDWWHUV SURYLGHG LQ VHFWLRQ RI WKH$FW KDV EHHQ GLVFXVVHGDORQJZLWKWKH1RPLQDWLRQDQG5HPXQHUDWLRQ&RPPLWWHHLQWKHFRUSRUDWHJRYHUQDQFHUHSRUW 0UV55DGLNDD6DUDWKNXPDU&KDLUSHUVRQ 0DQDJLQJ'LUHFWRU 0U5DPDQDWKDQ6DUDWKNXPDU'LUHFWRU±2SHUDWLRQV 0U0XUXJXYDQQDQ .DYLULPDQL&KLHI)LQDQFLDO2I¿FHUDQG0U.DQKX&KDUDQ6DKX&RPSDQ\6HFUHWDU\ZHUHWKHNH\PDQDJHULDOSHUVRQQHORIWKH&RPSDQ\ SXUVXDQWWRWKHSURYLVLRQVRIVHFWLRQRIWKH$FW Board evaluation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key aspects of her role. In a separate meeting of independent directors, performance of non-independent directors, performance of the board as a whole DQGSHUIRUPDQFHRIWKHFKDLUSHUVRQZDVHYDOXDWHG7KHVDPHZDVGLVFXVVHGLQWKHERDUGPHHWLQJWKDWIROORZHGWKHPHHWLQJRIWKH LQGHSHQGHQWGLUHFWRUVDWZKLFKWKHSHUIRUPDQFHRIWKHERDUGLWVFRPPLWWHHVDQGLQGLYLGXDOGLUHFWRUVZDVDOVRGLVFXVVHG3HUIRUPDQFH HYDOXDWLRQRILQGHSHQGHQWGLUHFWRUVZDVGRQHE\WKHHQWLUHERDUGH[FOXGLQJWKHLQGHSHQGHQWGLUHFWRUEHLQJHYDOXDWHG Directors’ Responsibility Statement: 3XUVXDQWWR6HFWLRQ RIWKH&RPSDQLHV$FWWKHERDUGRIGLUHFWRUVWRWKHEHVWRIWKHLUNQRZOHGJHDQGDELOLW\FRQ¿UPWKDW L LQWKHSUHSDUDWLRQRIWKHDQQXDODFFRXQWVWKHDSSOLFDEOHDFFRXQWLQJVWDQGDUGVKDYHEHHQIROORZHGDQGWKHUHDUHQRPDWHULDO departures; LL WKH\ KDYH VHOHFWHG VXFK DFFRXQWLQJ SROLFLHV DQG DSSOLHG WKHP FRQVLVWHQWO\ DQG PDGH MXGJPHQWV DQG HVWLPDWHV WKDW DUH UHDVRQDEOHDQGSUXGHQWVRDVWRJLYHDWUXHDQGIDLUYLHZRIWKHVWDWHRIDIIDLUVRIWKH&RPSDQ\DWWKHHQGRIWKH¿QDQFLDO\HDU DQGRIWKHSUR¿WRIWKH&RPSDQ\IRUWKDWSHULRG LLL WKH\KDYHWDNHQSURSHUDQGVXI¿FLHQWFDUHIRUWKHPDLQWHQDQFHRIDGHTXDWHDFFRXQWLQJUHFRUGVLQDFFRUGDQFHZLWKWKHSURYLVLRQVRI WKH$FWIRUVDIHJXDUGLQJWKHDVVHWVRIWKH&RPSDQ\DQGIRUSUHYHQWLQJDQGGHWHFWLQJIUDXGDQGRWKHULUUHJXODULWLHV LY WKH\KDYHSUHSDUHGWKHDQQXDODFFRXQWVRQDJRLQJFRQFHUQEDVLV Y WKH\KDYHODLGGRZQLQWHUQDO¿QDQFLDOFRQWUROVWREHIROORZHGE\WKH&RPSDQ\DQGVXFKLQWHUQDO¿QDQFLDOFRQWUROVDUHDGHTXDWH DQGRSHUDWLQJHIIHFWLYHO\ YL WKH\KDYHGHYLVHGSURSHUV\VWHPVWRHQVXUHFRPSOLDQFHZLWKWKHSURYLVLRQVRIDOODSSOLFDEOHODZVDQGWKDWVXFKV\VWHPVZHUH DGHTXDWHDQGRSHUDWLQJHIIHFWLYHO\ %DVHGRQWKHZRUNSHUIRUPHGE\WKHLQWHUQDOVWDWXWRU\DQGVHFUHWDULDODXGLWRUVLQFOXGLQJDXGLWRILQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDO UHSRUWLQJE\WKHVWDWXWRU\DXGLWRUVWKHERDUGLVRIWKHRSLQLRQWKDWWKH&RPSDQ\¶VLQWHUQDO¿QDQFLDOFRQWUROVDQGFRPSOLDQFHV\VWHPV ZHUHDGHTXDWHDQGHIIHFWLYHGXULQJWKHUHSRUWLQJSHULRG DIRECTOR’S REPORT 7 ANNUAL REPORT 2016 - 2017 Transactions with related parties: 'XULQJWKH¿QDQFLDO\HDU&RPSDQ\KDVHQWHUHGLQWRFRQWUDFWDUUDQJHPHQWRUWUDQVDFWLRQZLWKUHODWHGSDUWLHVZKLFKDUHQRWPDWHULDO DQGDFRPSOHWHOLVWRIWKHWUDQVDFWLRQVLVSURYLGHGDVSDUWRIQRWHVWRDFFRXQWV1RVXFKFRQWUDFWDUUDQJHPHQWRUWUDQVDFWLRQLVQRWLQ WKHRUGLQDU\FRXUVHRIEXVLQHVVDQGRUQRWDWDUP¶VOHQJWK3ROLF\RQGHDOLQJZLWKUHODWHGSDUW\WUDQVDFWLRQVLVDYDLODEOHRQWKHZHEVLWH of the Company Extract of Annual Return: $VSURYLGHGXQGHUVHFWLRQ RIWKH&RPSDQLHV$FWWKHH[WUDFWRIDQQXDOUHWXUQLQWKHSUHVFULEHGIRUP0*7 LVJLYHQLQ Annexure I as part of this report. Auditors: 0V&1*61 $VVRFLDWHV//36WDWXWRU\$XGLWRUVVXEPLWWHGWKHLUUHSRUWVIRUWKH)LQDQFLDO Name of the Director Ratio to median remuneration Ramanathan Sarathkumar 23.32 LL 7KHSHUFHQWDJHLQFUHDVHLQUHPXQHUDWLRQRIHDFKGLUHFWRUFKLHIH[HFXWLYHRI¿FHUFKLHI¿QDQFLDORI¿FHUFRPSDQ\VHFUHWDU\LQWKH ¿QDQFLDO\HDU % increase in remuneration in the 'LUHFWRUV&KLHI([HFXWLYH2I¿FHU&KLHI)LQDQFLDO2I¿FHUDQG&RPSDQ\6HFUHWDU\ ¿QDQFLDO\HDU Ramanathan Sarathkumar --- 0.DYLULPDQL --- .DQKX&KDUDQ6DKX --- 8 DIRECTOR’S REPORT ANNUAL REPORT 2016 - 2017 LLL 7KHSHUFHQWLQFUHDVHLQWKHPHGLDQUHPXQHUDWLRQRIHPSOR\HHVLQWKH¿QDQFLDO\HDU±1,/ LY 7KHQXPEHURISHUPDQHQWHPSOR\HHVRQWKHUROOVRIWKHFRPSDQ\± Y $YHUDJHSHUFHQWLOHLQFUHDVHDOUHDG\PDGHLQWKHVDODULHVRIHPSOR\HHVRWKHUWKDQWKHPDQDJHULDOSHUVRQQHOLQWKHODVW¿QDQFLDO \HDUDQGLWVFRPSDULVRQZLWKWKHSHUFHQWLOHLQFUHDVHLQWKHPDQDJHULDOUHPXQHUDWLRQDQGMXVWL¿FDWLRQWKHUHRIDQGSRLQWRXWLI there are any exceptional circumstances for increase in the managerial remuneration: 'XULQJWKH\HDUQRLQFUHPHQWZDVJUDQWHGWRHPSOR\HHV¶VDODU\LQFOXGLQJWKHPDQDJHULDOSHUVRQQHO YL 7KHUHPXQHUDWLRQLVDVSHUWKHUHPXQHUDWLRQSROLF\RIWKHFRPSDQ\ YLL 1RQH RI WKH HPSOR\HHV LV LQ UHFHLSW RI UHPXQHUDWLRQ H[FHHGLQJ WKH OLPLW DV VSHFL¿HG XQGHU 5XOH RI WKH &RPSDQLHV $SSRLQWPHQW DQG 5HPXQHUDWLRQ RI 0DQDJHULDO 3HUVRQQHO 5XOHV $ VWDWHPHQW RI WRS WHQ HPSOR\HHV LQ WHUPV RI UHPXQHUDWLRQGUDZQDUHSURYLGHGLQAnnexure III, which forms part of this Report. Risk Management: ,QWHUPVRI&ODXVH ,, 9, RIWKHHUVWZKLOH/LVWLQJ$JUHHPHQWWKH%RDUGRI'LUHFWRUVDWLWVPHHWLQJKHOGRQth February 2015, IRUPXODWHGD5LVN0DQDJHPHQW&RPPLWWHH+RZHYHUDVSHU/LVWLQJ5HJXODWLRQV&RPSDQ\LVQRWUHTXLUHGWRPDLQWDLQ5LVN0DQDJHPHQW &RPPLWWHHVRWKH%RDUGRI'LUHFWRUVLQLWVPHHWLQJKHOGRQth)HEUXDU\KDVGLVVROYHGWKH&RPPLWWHH 7KH&RPSDQ\KDVLQSODFHD5LVN0DQDJHPHQW3ROLF\SXUVXDQWWR6HFWLRQRIWKH&RPSDQLHV$FWZKLFKLVSXEOLVKHGLQWKH ZHEVLWHRIWKH&RPSDQ\7KH%RDUGRI'LUHFWRUVDQGWKH$XGLW&RPPLWWHHVKDOOEHUHVSRQVLEOHIRUIUDPLQJLPSOHPHQWLQJDQGPRQLWRULQJ WKHULVNPDQDJHPHQWSODQRIWKHFRPSDQ\6HQLRU([HFXWLYHVVKDOOEHUHVSRQVLEOHIRULPSOHPHQWDWLRQRIWKHULVNPDQDJHPHQWV\VWHP DVPD\EHDSSOLFDEOHWRWKHLUUHVSHFWLYHDUHDVRIIXQFWLRQLQJ 7KHPDMRUULVNVLGHQWL¿HGE\WKHEXVLQHVVIXQFWLRQVDQGWKHZD\VRIPLWLJDWLRQKDVEHHQFRYHUHGLQWKHPDQDJHPHQWGLVFXVVLRQDQG analysis. Particulars of loans guarantees and investments: 3DUWLFXODUVRIORDQVJXDUDQWHHVDQGLQYHVWPHQWVKDYHEHHQGLVFXVVHGLQWKH¿QDQFLDOVWDWHPHQWV Conservation of Energy, Research and Development, Technology Absorption, Foreign Exchange Earnings and Outgo: $ &RQVHUYDWLRQRI(QHUJ\ 7KHFRPSDQ\EHLQJLQPHGLDDQGHQWHUWDLQPHQWLQGXVWU\LW¶VRSHUDWLRQVDUHQRWHQHUJ\LQWHQVLYH+RZHYHUWKHFRPSDQ\WDNHV DGHTXDWHPHDVXUHVWRVDYHHQHUJ\E\LQVWDOOLQJHQHUJ\HI¿FLHQWHOHFWULFDODQGHOHFWURQLFHTXLSPHQWV % 5HVHDUFKDQG'HYHORSPHQW 7KHFRPSDQ\KDVQRWFDUULHGRXWDQ\VSHFL¿FUHVHDUFKDFWLYLW\GXULQJWKH\HDUXQGHUUHYLHZ+RZHYHUDVSDUWRIUHJXODURQJRLQJ business it explores ideas in creating contents in entertainment. & 7HFKQRORJ\DEVRUSWLRQDGDSWDWLRQDQGLQQRYDWLRQ 7KHFRPSDQ\FRQWLQXHVWRXVHWKHODWHVWWHFKQRORJLHVIRULPSURYLQJSURGXFWLYLW\DQGTXDOLW\RILW¶VRSHUDWLRQV ' )RUHLJQH[FKDQJHHDUQLQJVDQGRXWJR 7KHFRPSDQ\UHJXODUO\VXSSOLHVWHOHYLVLRQFRQWHQWVWRRYHUVHDVEURDGFDVWLQJFKDQQHOV'HWDLOVRIIRUHLJQFXUUHQF\HDUQHGDQG XVHGGXULQJWKH\HDUDUHSURYLGHGEHORZ Year ended 31-03-2017 Year ended 31-03-2016 )RUHLJQ([FKDQJH(DUQLQJV 86 HTXLYDOHQWWR5V 86 HTXLYDOHQWWR5V $86 DQG6LQJLQWRWDOHTXLYDOHQW ([SHQGLWXUHLQIRUHLJQFXUUHQF\ 1,/ to Rs.5,48,169 Corporate Governance Reports: 3XUVXDQWWR5HJXODWLRQRIWKH6(%,/LVWLQJ5HJXODWLRQVDQGRWKHUDSSOLFDEOHSURYLVLRQVWKHIROORZLQJKDYHEHHQPDGHSDUWRIWKLV report. 0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLV &RUSRUDWH*RYHUQDQFH5HSRUW &HUWL¿FDWHIURPWKH$XGLWRUVUHJDUGLQJFRPSOLDQFHRIFRQGLWLRQVRI&RUSRUDWH*RYHUQDQFH 'HFODUDWLRQRQFRPSOLDQFHZLWK&RGHRI&RQGXFW &HUWL¿FDWHRIWKH0DQDJLQJ'LUHFWRUDQGWKH&KLHI)LQDQFLDO2I¿FHURQWKH¿QDQFLDOVWDWHPHQWV Obligation under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013: Appreciation 7KH 'LUHFWRUV DUH WKDQNIXO WR WKH PHPEHUV FXVWRPHUV YHQGRUV EURDGFDVWLQJ FKDQQHOV PDUNHWLQJ DJHQFLHV EDQNHUV IRU WKHLU FRQ¿GHQFHDQGFRQWLQXHGVXSSRUWH[WHQGHGWRWKHFRPSDQ\7KHGLUHFWRUVDUHJUDWHIXOWRWKH&HQWUDODQG6WDWH*RYHUQPHQWV6HFXULWLHV DQG([FKDQJH%RDUGRI,QGLD5HVHUYH%DQNRI,QGLD5HJLVWUDURI&RPSDQLHVDQGRWKHU*RYHUQPHQW5HJXODWRU\$XWKRULWLHVIRUWKHLU continued cooperation. 7KH'LUHFWRUVZRXOGOLNHWRH[SUHVVWKHLUVLQFHUHWKDQNVWRWKH)LOP3URGXFHUV&RXQFLO'LVWULEXWRUV$VVRFLDWLRQV$FWRUV$FWUHVVHV 6SRQVRUV DQG YDULRXV RWKHU DJHQFLHV DVVRFLDWHG ZLWK ¿OP DQG WHOHYLVLRQ LQGXVWU\ DQG PLOOLRQV RI YLHZHUV DQG SODFH RQ UHFRUG WKH support extended by them. 7KH'LUHFWRUVDOVRSODFHRQUHFRUGWKHLUDSSUHFLDWLRQWRDOOWKHHPSOR\HHVIRUWKHLUFRPPHQGDEOHFRQWULEXWLRQDWYDULRXVOHYHOV )RUDQGRQEHKDOIRIWKH%RDUGRI'LUHFWRUV -sd- Chennai R Radikaa Sarathkumar th 29 August 2017 Chairperson & Managing Director Annexure - I FORM NO. MGT 9 EXTRACT OF ANNUAL RETURN $VRQ¿QDQFLDO\HDUHQGHGRQ Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management & Administration) Rules, 2014. I. REGISTRATION & OTHER DETAILS: 1CIN / 71 3/& 2 Registration Date 15th September 1999 3 Name of the Company 5DGDDQ0HGLDZRUNV,QGLD/LPLWHG 4 Category/Sub-category of the Company &RPSDQ\ /LPLWHG E\ 6KDUHV ,QGLDQ 1RQ*RYHUQPHQW Company 5 $GGUHVVRIWKH5HJLVWHUHGRI¿FH FRQWDFWGHWDLOV No.14, Jayammal Road, Teynampet, Chennai - 600018 3K Fax: +91 44-24313008 HPDLO LQIR#UDGDDQWY ZHEVLWH ZZZUDGDDQWY 6 Whether listed company Yes 7 Name, Address & contact details of the &DPHR&RUSRUDWH6HUYLFHV/LPLWHG Registrar & Transfer Agent, if any. 6XEUDPDQLDQ %XLOGLQJ 1R &OXE +RXVH 5RDG &KHQQDL 600002 3K )D[ (PDLO FDPHR#FDPHRLQGLDFRP II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY NIC Code of the % to total turnover S. No Name and Description of main products / services Product/service of the company 1 0RWLRQSLFWXUHYLGHRDQGWHOHYLVLRQSURJUDPPHDFWLYLWLHV 591 100 III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES Holding % of Applicable S. No Name and Address of the Company CIN / GLN subsidiary shares Section Associate held 1 5DGDDQ0HGLD9HQWXUHV3WH/LPLWHG Not applicable Subsidiary 100 10 DIRECTOR’S REPORT ANNUAL REPORT 2016 - 2017 IV. SHARE HOLDING PATTERN (i) Category-wise Share Holding (Equity share capital breakup as percentage of total equity) No. of Shares held at the beginning of the No. of Shares held at the end of the year % Change Category of \HDU>$VRQ$SULO@ >$VRQ0DUFK@ during the Shareholders % of Total % of Total Demat 3K\VLFDO Total Demat 3K\VLFDO Total year Shares Shares A. Promoters (1) Indian D ,QGLYLGXDO+8) 278,49,790 - 278,49,790 51.42% 278,49,790 - 278,49,790 51.42% 0.00% E &HQWUDO*RYW - - - 0.00% - - - 0.00% 0.00% F 6WDWH*RYW V - - - 0.00% - - - 0.00% 0.00% G %RGLHV&RUS - - - 0.00% - - - 0.00% 0.00% H %DQNV), - - - 0.00% - - - 0.00% 0.00% I $Q\RWKHU - - - 0.00% - - - 0.00% 0.00% Sub Total (A) (1) 278,49,790 - 278,49,790 51.42% 278,49,790 - 278,49,790 51.42% 0.00% (2) Foreign D 15,V)RUHLJQ,QGLYLGXDOV - - - 0.00% - - - 0.00% 0.00% E %RGLHV&RUS,QVWLWXWLRQV - - - 0.00% - - - 0.00% 0.00% F 4XDOL¿HG)RUHLJQ,QYHVWRUV - - - 0.00% - - - 0.00% 0.00% G $Q\RWKHU - - - 0.00% - - - 0.00% 0.00% Sub Total (A) (2) - - - 0.00% - - - 0.00% 0.00% TOTAL (A) 278,49,790 - 278,49,790 51.42% 278,49,790 - 278,49,790 51.42% 0.00% B. Public Shareholding 1. Institutions D 0XWXDO)XQGV - - - 0.00% - - - 0.00% 0.00% E %DQNV), - - - 0.00% - - - 0.00% 0.00% F &HQWUDO*RYW6WDWH*RYW V - - - 0.00% - - - 0.00% 0.00% G 9HQWXUH&DSLWDO)XQGV - - - 0.00% - - - 0.00% 0.00% H ,QVXUDQFH&RPSDQLHV - - - 0.00% - - - 0.00% 0.00% I )RUHLJQ9HQWXUH&DSLWDO - - - 0.00% - - - 0.00% 0.00% Funds J ),,V - 1,50,000 1,50,000 0.28% - 1,50,000 1,50,000 0.28% 0.00% K 4XDOL¿HG)RUHLJQ,QYHVWRU - - - 0.00% - - - 0.00% 0.00% L 2WKHUV VSHFLI\ - - 0.00% - - 0.00% 0.00% Sub-total (B)(1):- - 1,50,000 1,50,000 0.28% - 1,50,000 1,50,000 0.28% 0.00% 2. Non-Institutions D %RGLHV&RUS L ,QGLDQ 66,21,589 - 66,21,589 12.23% 60,10,182 - 60,10,182 11.10% -1.13% LL 2YHUVHDV - - - 0.00% - - - 0.00% 0.00% E ,QGLYLGXDOV L ,QGLYLGXDOVKDUHKROGHUV holding nominal share capital 1,46,73,396 27,833 1,47,01,229 27.14% 1,46,92,202 28,033 1,47,20,235 27.18% 0.04% upto Rs. 1 lakh LL ,QGLYLGXDOVKDUHKROGHUV holding nominal share capital 40,72,757 - 40,72,757 7.52% 46,36,617 - 46,36,617 8.56% 1.04% in excess of Rs 1 lakh F 4XDOL¿HG)RUHLJQ,QYHVWRU ------0.00% G 2WKHUV VSHFLI\ Non Resident Indians 3,07,921 - 3,07,921 0.57% 3,00.450 - 3,00.450 0.55% -0.02% +LQGX8QGHYLGHG)DPLOLHV 4,32,174 - 4,32,174 0.80% 4,52,186 - 4,52,186 0.83% 0.03% Clearing Members 3,380 - 3,380 0.00% 19,380 - 19,380 0.03% 0.03% Trusts 22,700 - 22,700 0.04% 22,700 - 22,700 0.04% 0.00% Sub-total (B)(2):- 2,61,33,917 27,833 2,61,61,750 48.30% 2,61,33,917 27,833 2,61,61,750 48.30% 0.00% Total Public (B) 2,61,33,917 1,77,833 2,63,11,750 48.58% 2,61,33,917 1,77,833 2,63,11,750 48.58% 0.00% C. Shares held by - - - 0.00% - - - 0.00% 0.00% Custodian for GDRs & DRs Grand Total (A+B+C) 5,39,83,707 1,77,833 5,41,61,540 100.00% 5,39,83,707 1,77,833 5,41,61,540 100.00% 0.00% DIRECTOR’S REPORT 11 ANNUAL REPORT 2016 - 2017 (ii) Shareholding of Promoter Shareholding at the beginning of the year Shareholding at the end of the year % of Shares % of Shares % change in % of total 3OHGJHG % of total 3OHGJHG shareholding SN 6KDUHKROGHU¶V1DPH No. of No. of Shares of encumbered Shares of encumbered during the Shares Shares the company to total the company to total year shares shares 1 55DGLNDD6DUDWKNXPDU 2,78,49,790 51.42% 23.08% 2,78,49,790 51.42% 23.08% 0.00% * shareholding is consolidated based on permanent account number (PAN) of shareholder (iii) Change in Promoters’ Shareholding (please specify, if there is no change) Shareholding at the Cumulative Shareholding beginning of the year during the year SN Particulars Date Reason No. of % of total No. of % of total shares shares shares shares At the beginning of the year 'DWH ZLVH ,QFUHDVH 'HFUHDVH LQ 3URPRWHUV 7KHUHLVQRFKDQJHLQ3URPRWHUV¶6KDUHKROGLQJEHWZHHQ Share holding during the year specifying the 01.04.2016 to 31.03.2017 UHDVRQVIRULQFUHDVHGHFUHDVH HJDOORWPHQW WUDQVIHUERQXVVZHDWHTXLW\HWF At the end of the year (IV) Shareholding Pattern of top ten Shareholders (Other than Directors, Promoters and Holders of GDRs and ADRs) Shareholding at the beginning of the year Shareholding at the end of the year SN Name No. of Shares % of total shares No. of sharers % of total shares 1 *ROGTXHVW,QWHUQDWLRQDO3YW/WG 16,56,870 3.06% 16,56,870 3.06% 2 6HQWKLO7UDGHDQG%XVLQHVV/LQNV3 13,73,119 2.54% 13,73,119 2.54% /WG 3 2DN/DQG(VWDWHV3ULYDWH/WG 13,13,118 2.42% 9.70,842 1.79% 4 Raju Radha 8,00,000 1.48% 7.97,920 1.48% 5 0DOX)LQDQFLDO6HFXULWLHV/LPLWHG 7,18,387 1.33% 4,17,815 0.77% 6 3..XPDUDGHYDQ 3,35,037 0.61% 3,35,037 0.61% 7 0RWL/DO'DJD 2,52,787 0.47% 2,57,807 0.48% 8 6DQJHHWKD$URUD0DQLVK.XPDU$URUD 1,91,978 0.35% 1,91,978 0.35% 9 -DLGHHS-DQDN0HUFKDQW 1,90,664 0.35% 1,90,664 0.35% 10 $EKL$PEL)LQDQFLDO6HUYLFHV/LPLWHG 1,68,595 0.31% 0 0.00% 11 /HNK\D(QWHUWDLQPHQW3YW/WG 50,000 0.09% 3,15,538 0.58% 12 0DQGDYD5DGKLND 0 0.00% 2,50,000 0.46% * Was among top 10 shareholders as at beginning of the year. **Was among top 10 shareholders as at end of the year. Notes: 1. Shares of the company are substantially held in dematerialized form and are traded on a daily basis and hence date wise increase/decrease in shareholding is not indicated. 2. Shareholding is consolidated based on permanent account number (PAN) of shareholder (v) Shareholding of Directors and Key Managerial Personnel: Shareholding at the beginning of the Shareholding of each Directors and each Key Shareholding at end of the year SN year Managerial Personnel No. of shares % of total shares No. of shares % of total shares 1 55DGLNDD6DUDWKNXPDU 2,78,49,790 51.42% 2,78,49,790 51.42% * also promoter No other Director or KMP hold any share in the company. 12 DIRECTOR’S REPORT ANNUAL REPORT 2016 - 2017 V. INDEBTEDNESS Indebtedness of the Company including interest outstanding/accrued but not due for payment. $PW5V/DFV Unsecured Total Particulars Secured Loans excluding deposits Deposits Loans Indebtedness ,QGHEWHGQHVVDWWKHEHJLQQLQJRIWKH¿QDQFLDO\HDU L 3ULQFLSDO$PRXQW 783.84 - - 783.84 LL ,QWHUHVWGXHEXWQRWSDLG ---- LLL ,QWHUHVWDFFUXHGEXWQRWGXH -- 7RWDO LLLLLL 783.84 - - 783.84 &KDQJHLQ,QGHEWHGQHVVGXULQJWKH¿QDQFLDO\HDU Addition 95.63 - - 95.63 Reduction 18.23 - - 18.23 Net Change 77.40 - - 77.40 ,QGHEWHGQHVVDWWKHHQGRIWKH¿QDQFLDO\HDU L 3ULQFLSDO$PRXQW 861.24 - - 861.24 LL ,QWHUHVWGXHEXWQRWSDLG ---- LLL ,QWHUHVWDFFUXHGEXWQRWGXH 0.36 - - 0.36 7RWDO LLLLLL 861.60 - - 861.60 VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL A. Remuneration to Managing Director, Whole-time Directors and/or Manager: SN. Particulars of Remuneration Name of MD/WTD/Manager Name R Sarathkumar Total Amount Designation Director - Opearations Gross salary 5VODF D 6DODU\DVSHUSURYLVLRQVFRQWDLQHGLQVHFWLRQ RIWKH,QFRPHWD[ 42.00 42.00 1 Act, 1961 E 9DOXHRISHUTXLVLWHVXV ,QFRPHWD[$FW -- F 3UR¿WVLQOLHXRIVDODU\XQGHUVHFWLRQ ,QFRPHWD[$FW -- 2 Stock Option -- 3 6ZHDW(TXLW\ -- 4 Commission -- DVRISUR¿W -- - others, specify - - 5 Others, please specify - - Total 42.00 42.00 0LQLPXPUHPXQHUDWLRQVSHFL¿HGXQGHU6FKHGXOH Ceiling as per the Act 9RIWKH&RPSDQLHV$FW B. Remuneration to other Directors Fee for attending Others, please SN. Particulars of Remuneration board / committee commission Total Amount specify meetings 5V/DF 1 Independent Directory $UXQDFKDODP.ULVKQDPRRUWK\ 1.50 - 1.50 -DQDUGKDQ.ULVKQDSUDVDG 1.60 - - 1.60 9HOOD\DQ6HOYDUDM 1.60 - - 1.60 7RWDO 4.70 - - 4.70 2 2WKHU1RQ([HFXWLYH'LUHFWRUV - Fee for attending board committee meetings - - - - Commission - - - - Others, please specify - - - - 7RWDO - - - - 7RWDO 4.70 - - 4.70 DIRECTOR’S REPORT 13 ANNUAL REPORT 2016 - 2017 C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD SN. Particulars of Remuneration Name of Key Managerial Personnel Total Amount (Rs/Lac) Name M Kavirimani Kanhu Charan Sahu Designation CFO CS 1 Gross salary D 6DODU\DVSHUSURYLVLRQVFRQWDLQHGLQVHFWLRQ RI 18.48 10.08 28.56 the Income-tax Act, 1961 E 9DOXHRISHUTXLVLWHVXV ,QFRPHWD[$FW F 3UR¿WVLQOLHXRIVDODU\XQGHUVHFWLRQ ,QFRPHWD[ Act, 1961 2 Stock Option 3 6ZHDW(TXLW\ 4 Commission DVRISUR¿W - others, specify 5 Others Total 18.48 10.08 28.56 VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES: There were no penalties, punishment or compounding of offences during the year ended 31st March 2017 Annexure II Form No. MR-3 SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED MARCH 31, 2017 [Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014] To, The Members, RADAAN MEDIAWORKS INDIA LIMITED No.14, Jayammal Road, Teynampet, &+(11$,± , KDYH FRQGXFWHG WKH VHFUHWDULDO DXGLW RI WKH FRPSOLDQFH RI DSSOLFDEOH VWDWXWRU\ SURYLVLRQV DQG WKH DGKHUHQFH WR JRRG FRUSRUDWH SUDFWLFHVE\0V5DGDDQ0HGLDZRUNV,QGLD/LPLWHG KHUHLQDIWHUFDOOHGµWKHFRPSDQ\¶ 6HFUHWDULDO$XGLWZDVFRQGXFWHGLQDPDQQHU WKDWSURYLGHGPHDUHDVRQDEOHEDVLVIRUHYDOXDWLQJWKHFRUSRUDWHFRQGXFWVVWDWXWRU\FRPSOLDQFHVDQGH[SUHVVLQJP\RSLQLRQWKHUHRQ %DVHGRQP\YHUL¿FDWLRQRI0V5DGDDQ0HGLDZRUNV,QGLD/LPLWHG¶VERRNVSDSHUVPLQXWHERRNVIRUPVDQGUHWXUQV¿OHGDQGRWKHU UHFRUGVPDLQWDLQHGE\WKHFRPSDQ\DQGDOVRWKHLQIRUPDWLRQSURYLGHGE\WKH&RPSDQ\LWVRI¿FHUVDJHQWVDQGDXWKRUL]HGUHSUHVHQWDWLYHV GXULQJWKHFRQGXFWRIVHFUHWDULDODXGLW,KHUHE\UHSRUWWKDWLQP\RSLQLRQWKHFRPSDQ\KDVGXULQJWKHDXGLWSHULRGFRYHULQJWKH¿QDQFLDO \HDUHQGHGRQ0DUFKFRPSOLHGZLWKWKHVWDWXWRU\SURYLVLRQVOLVWHGKHUHXQGHUDQGDOVRWKDWWKH&RPSDQ\KDVSURSHU%RDUG processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter: ,KDYHH[DPLQHGWKHERRNVSDSHUVPLQXWHERRNVIRUPVDQGUHWXUQV¿OHGDQGRWKHUUHFRUGVPDLQWDLQHGE\0V5DGDDQ0HGLDZRUNV ,QGLD/LPLWHG ³WKH&RPSDQ\´ IRUWKH¿QDQFLDO\HDUHQGHGRQ0DUFKDFFRUGLQJWRWKHSURYLVLRQVRI L 7KH&RPSDQLHV$FW WKH$FW DQGWKHUXOHVPDGHWKHUHXQGHU LL 7KH6HFXULWLHV&RQWUDFWV 5HJXODWLRQ $FW µ6&5$¶ DQGWKHUXOHVPDGHWKHUHXQGHU LLL 7KH'HSRVLWRULHV$FW DQGWKH5HJXODWLRQVDQG%\HODZVIUDPHGWKHUHXQGHU LY 7KHIROORZLQJ5HJXODWLRQVDQG*XLGHOLQHVSUHVFULEHGXQGHUWKH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD$FW µ6(%,$FW¶ :KHUHHYHUDSSOLFDEOH D 7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD 6XEVWDQWLDO$FTXLVLWLRQRI6KDUHVDQG7DNHRYHUV 5HJXODWLRQV E 7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD 3URKLELWLRQRI,QVLGHU7UDGLQJ 5HJXODWLRQV 14 DIRECTOR’S REPORT ANNUAL REPORT 2016 - 2017 F 7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD ,VVXH RI &DSLWDO DQG 'LVFORVXUH 5HTXLUHPHQWV 5HJXODWLRQV 1RW DSSOLFDEOHWRWKH&RPSDQ\GXULQJWKH¿QDQFLDO\HDU G 7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD 6KDUH %DVHG (PSOR\HH %HQH¿WV 5HJXODWLRQV 1RW DSSOLFDEOH WR WKH &RPSDQ\GXULQJWKH¿QDQFLDO\HDU H 7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD ,VVXHDQG/LVWLQJRI'HEW6HFXULWLHV 5HJXODWLRQV1RWDSSOLFDEOHWRWKH &RPSDQ\GXULQJWKH¿QDQFLDO\HDU I 7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD 5HJLVWUDUV WR DQ ,VVXH DQG 6KDUH7UDQVIHU$JHQWV 5HJXODWLRQV 1RW DSSOLFDEOHWRWKH&RPSDQ\GXULQJWKH¿QDQFLDO\HDU J 7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD 'HOLVWLQJRI(TXLW\6KDUHV 5HJXODWLRQV 1RWDSSOLFDEOHWRWKH&RPSDQ\ GXULQJWKH¿QDQFLDO\HDU K 7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD %X\EDFN RI 6HFXULWLHV 5HJXODWLRQV 1RW DSSOLFDEOH WR WKH &RPSDQ\ GXULQJWKH¿QDQFLDO\HDU L 7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD /LVWLQJ2EOLJDWLRQVDQG'LVFORVXUH5HTXLUHPHQWV 5HJXODWLRQVZLWKHIIHFW from December 1, 2015. 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Age Name and designation Received 4XDOL¿FDWLRQV Experience commencement before joining the No. (years) (Rs.) of employment company Mr. Ramanathan Sarathkumar, %6F 1 42,00,000 31 Years 01-04-2007 63 --- Director - Operations 0DWKHPDWLFV %&RP0$ &UHDWLYH'LUHFWRULQ 0UV6XEKDD9HQNDW -RXUQDOLVP 2 24,00,000 27 Years 01-06-2015 51 0'(QWHUWDLQPHQW &22&UHDWLYHV and Mass Indonesia &RPPXQLFDWLRQ Computer Age 0U0.DYLULPDQL Management 3 18,48,000 %$ &6 )&$ 18 Years 03-11-2005 45 &KLHI)LQDQFLDO2I¿FHU 6HUYLFHV3ULYDWH /LPLWHG &UHDWLYH Mr. Sumi Ratnam, 0$ 7DPLO Consultant in Star 4 12,00,000 30 Years 02-05-2012 54 3URMHFW+HDG )LOP7HFK 9LMD\7HOHYLVLRQ 3ULYDWH/LPLWHG 0U.DQKX&KDUDQ6DKX %6F$&6 3\UDPLG6DLPLUD 5 10,08,000 11 Years 08-09-2009 41 Company Secretary //% 7KHDWUHV/LPLWHG %$ (FRQRPLFV M.A. in Sports Ms. Rayane Sarathkumar, 6 9,00,000 Management from 3 Years 08-08-2014 24 --- +HDG±1HZ0HGLD /HHGV8QLYHUVLW\ 8. Mr.M Subramanian, H.S.C, Diploma in 3UDVDG 7 5,01,600 13 Years 07-02-2012 35 7HDP/HDGHU*UDSKLFV Graphics &RUSRUDWLRQ/WG 3URGXFWLRQDQG 0U.6XNXPDUDQ FUHDWLYHFR 8 4,81,800 %&RP 23 Years 24-02-2010 55 3URGXFWLRQ+HDG ordinator in Cine times 0U59HQX*RSDO %&RP&$ 9 4,14,000 10 Years 01-03-2007 43 --- 0DQDJHU±$FFRXQWV )LQDQFH ,QWHU Senior Graphics %$ &RUSRUDWH Designer in 0U505DYL.XPDU 10 4,05,000 6HFUHWDU\VKLS 10 Years 02-05-2012 37 R.R.Donnelly India 0DQDJHU±:HE'HYHORSPHQW 0$ 0& - 2XWVRXUFH3YW /WG&KHQQDL * Currently not in service Note: (a) None of the above employees hold any share in the company (b) Mr.Ramanathan Sarathkumar holds the position as Whole-time Director (c) Ms.Rayane Sarathkumar is daughter of the Chairperson & Managing Director 16 DIRECTOR’S REPORT ANNUAL REPORT 2016 - 2017 MANAGEMENT DISCUSSION AND ANALYSIS &HUWDLQ VWDWHPHQWV PDGH LQ WKH PDQDJHPHQW GLVFXVVLRQ DQG DQDO\VLV UHODWLQJ WR &RPSDQ\¶V REMHFWLYHV SURMHFWLRQV HVWLPDWLRQV DQGH[SHFWDWLRQVPD\FRQVWLWXWHµIRUZDUGORRNLQJVWDWHPHQWV¶ZLWKLQWKHPHDQLQJRIDSSOLFDEOHODZVDQGUHJXODWLRQV$FWXDOUHVXOWV SHUIRUPDQFHRUDFKLHYHPHQWVPD\GLIIHUIURPVXFKH[SHFWDWLRQVZKHWKHUH[SUHVVHGRULPSOLHG7KHLPSRUWDQWIDFWRUVZKLFKFRXOGKDYH DQLPSDFWRQWKHFRPSDQ\¶VRSHUDWLRQVLQFOXGHFOLPDWLFDQGHFRQRPLFFRQGLWLRQVDIIHFWLQJGHPDQGDQGVXSSO\FKDQJHVLQJRYHUQPHQW UHJXODWLRQV DQG WD[DWLRQ DQG RWKHU LQFLGHQWDO IDFWRUV RYHU ZKLFK WKH &RPSDQ\ GRHV QRW KDYH FRQWURO 7KH FRPSDQ\ DVVXPHV QR UHVSRQVLELOLW\ WR SXEOLFO\ DPHQG PRGLI\ RU UHYLVH DQ\ IRUZDUG ORRNLQJ VWDWHPHQWV RQ WKH EDVLV RI DQ\ VXEVHTXHQW GHYHORSPHQWV LQIRUPDWLRQRUHYHQWV Economic Overview: *OREDOHFRQRP\HYLGHQFHGDVORZHUJURZWKLQZLWK%UH[LWWKH86HOHFWLRQORZFRPPRGLW\SULFHDQGRWKHUEXVLQHVVXQFHUWDLQWLHV 7KHZRUOG*'3JURZWKVOLSSHGWRIURPLQSDVWIHZ\HDUV7KH,0)KDVSURMHFWHGWKHZRUOG*'3WRJURZDWLQ 0RYLQJDORQJWKHJOREDOHFRQRP\,QGLDWRRZLWQHVVHGDPDUJLQDOO\ORZHU*'3JURZWKZKHUH&HQWUDO6WDWLVWLFV2I¿FHKDVHVWLPDWHGLW WREHLQ)<DVDJDLQVWLQ)<+RZHYHU,QGLDFRQWLQXHVWRKROGLWVFURZQRIIDVWHVWJURZLQJPDMRUHFRQRP\RYHUWDNLQJ &KLQDIRUWKHFRQVHFXWLYHVHFRQG\HDU7KHHFRQRPLFJURZWKLQ,QGLDLVH[SHFWHGWRKDYHEHHQHYHQEHWWHUKDGLWQRWJRQHWKURXJKWKH shock of demonetisation. Industry Overview: )RU,QGLDQ0HGLDDQG(QWHUWDLQPHQW 0 ( LQGXVWU\WKH\HDUZDVDPL[HGEDJ7KHGHPRQHWLVDWLRQOHGWRDGHFOLQHLQFRQVXPSWLRQ DFURVVVHFWRUVWKLVOHGWRDSXOOEDFNRQGLVFUHWLRQDU\VSHQGVRQPDUNHWLQJDQGDGYHUWLVLQJWKHUHSHUFXVVLRQVRIZKLFKZHUHIHOWDFURVV 0 (LQGXVWU\+RZHYHUWKHLPSDFWLVH[SHFWHGWREHVKRUWOLYHGDVWKHUHKDVEHHQDQXSVZLQJLQFRQVXPSWLRQDQGDGYHUWLVLQJGHPDQG ,QWKH,QGLDQ0 (LQGXVWU\JUHZDW RQWKHEDFNRIDGYHUWLVLQJJURZWKRI THE INDIAN M&E INDUSTRY SIZE Overall industry Growth in size/ (INR 2011 2012 2013 2014 2015 2016 2016 over Billion)/ (For 2015 Calendar Years) 79 329.0 370.1 417.2 474.9 542.2 588.3 8.5% 3ULQW 208.8 224.1 243.1 263.4 283.4 303.3 7.0% Films 92.9 112.4 125.3126.4 138.2 142.3 3.0% Radio 11.5 12.7 14.617.2 19.8 22.7 14.6% Music 9.0 10.6 9.6 9.8 10.8 12.2 13% OOH 17.8 18.2 19.322.0 24.4 26.1 7.0% Animation and 31.0 35.3 39.7 44.9 51.1 59.5 16.4% 9); Gaming 13.0 15.3 19.2 23.5 26.5 30.8 16.2% 'LJLWDO$GYHUWLVLQJ 15.4 21.7 30.1 43.5 60.1 76.9 28% Total 728.4 821.0 918.1 1025.6 1156.5 1262.1 9.1% Courtesy : FICCI-KPMG Indian Media and Entertainment Industry Report for 2017 ADVERTISING REVENUE SIZE Overall industry Growth in size/ (INR 2011 2012 2013 2014 2015 2016 2016 over Billion)/ (For 2015 Calendar Years) 79 116.0 124.8 135.9 154.9 181.3 201.2 11.0% 3ULQW 139.4 149.6 162.6 176.4 189.3 201.3 6.3% 'LJLWDO$GYHUWLVLQJ 15.4 21.7 30.1 43.5 60.1 76.9 28.0% OOH 17.8 18.2 19.3 22.0 24.4 26.1 7.0% Radio 11.5 12.7 14.6 17.2 19.8 22.7 14.6% Total 300.1 327.0 362.5 414.0 474.9 528.2 11.2% Courtesy : FICCI-KPMG Indian Media and Entertainment Industry Report for 2017 7KHORQJWHUPIDFWRUVGULYLQJWKHIXWXUHJURZWKDUHH[SHFWHGWRUHPDLQSRVLWLYHZLWKJURZLQJUXUDOGHPDQGLQFUHDVLQJGLJLWDODFFHVV DQGFRQVXPSWLRQDQGH[SHFWHGFXOPLQDWLRQRIWKHGLJLWLVDWLRQSURFHVVRIWHOHYLVLRQGLVWULEXWLRQRYHUWKHQH[WWZRWRWKUHH\HDUV7KH ,QGLDQ0 (LQGXVWU\LVSURMHFWHGWRJURZDWDIDVWHUSDFHRIRYHUWKHSHULRG±ZLWKDGYHUWLVLQJUHYHQXHH[SHFWHGWRLQFUHDVH at a CAGR of 15.3% during the same period. MANAGEMENT DISCUSSION AND ANALYSIS 17 ANNUAL REPORT 2016 - 2017 THE INDIAN M&E INDUSTRY PROJECTION Overall industry size/ (INR CAGR 2016 2017p 2018p 2019p 2020p 2021p Billion)/ (For (2016-21p) Calendar Years) 79 588.3 651.0 750.9 876.8 1014.5 1165.6 14.7% 3ULQW 303.3 325.0 350.4 378.5 405.6 431.1 7.3% Films 142.3 155.0 166.0 178.2 191.6 206.6 7.7% Radio 22.7 26.4 30.7 35.9 41.5 47.8 16.1% Music 12.2 14.0 16.3 19.0 22.1 25.4 15.8% OOH 26.1 29.0 32.5 36.4 40.8 45.7 11.8% Animation and 59.5 69.5 81.2 95.5 111.9 131.7 17.2% 9); Gaming 30.8 37.2 44.2 52.2 60.7 71.0 18.2 Digital 76.9 101.5 134.0 174.3 226.5 294.5 30.8% $GYHUWLVLQJ Total 1262.1 1408.7 1606.2 1846.7 2115.2 2419.4 13.9% Courtesy : FICCI-KPMG Indian Media and Entertainment Industry Report for 2017 ADVERTISING REVENUE PROJECTIONS Overall industry size/ (INR CAGR 2016 2017p 2018p 2019p 2020p 2021p Billion)/ (For (2016-21p) Calendar Years) 79 201.2 225.4 256.9 298.0 342.7 394.1 14.4% 3ULQW 201.3 215.0 233.3 254.9 276.2 296.0 8.0% Digital 76.9 101.5 134.0 174.3 226.5 294.5 30.8% $GYHUWLVLQJ OOH 26.1 29.0 32.5 36.4 40.8 45.7 11.8% Radio 22.7 26.4 30.7 35.9 41.5 47.8 16.1% Total 528.2 597.3 687.4 799.5 927.7 1078.1 15.3% Courtesy : FICCI-KPMG Indian Media and Entertainment Industry Report for 2017 7KHHFRPPHUFHVHJPHQWFRQWLQXHGWRDJJUHVVLYHO\FKDVHPDUNHWVKDUHE\FRQWLQXLQJWRVSHQGRQFXVWRPHUDFTXLVLWLRQ(FRPPHUFH DGYHUWLVLQJ VSHQGV LQLWLDOO\ IRFXVHG RQ GLJLWDO SODWIRUPV EXW RYHU WKH ODVW FRXSOH RI \HDUV WKHUH KDV EHHQ VLJQL¿FDQW LQFUHDVH LQ DGYHUWLVLQJVSHQGVDFURVV7HOHYLVLRQ3ULQWDQG5DGLR,WLVH[SHFWHGWKDWHFRPPHUFHZLOOFRQWLQXHWREHDQDFWLYHDGYHUWLVHUDFURVV platforms with spends being concentrated among the large e-commerce players and increasing focus on regional markets. 7KH*67FRPLQJWRHIIHFWWKHUHZRXOGEHDQLQLWLDODGYHUVHLPSDFWRQDGYHUWLVLQJVSHQGDVRUJDQLVDWLRQVDFURVVWKHERDUGVWUXJJOH ZLWKWKHLPSOHPHQWDWLRQRI*67+RZHYHULQWKHORQJWHUPZLWKWKHIRUPDOLVDWLRQRIWKHHFRQRP\DQGZLGHQLQJRIWD[EDVHWKHUHFRXOG EHDSRVLWLYHLPSDFWRQWKHFRXQWU\¶V*'3DQGFRQVHTXHQWO\RQDGYHUWLVLQJVSHQGV The industry is on the cusp of rapid transformation with digital media taking centre stage across all the sub-sectors. Digital media, which ZDVHDUOLHUEHLQJYLHZHGDVMXVWDQDGGLWLRQDOGLVWULEXWLRQSODWIRUPDQGMXVWDQRWKHUWRXFKSRLQWLVUDSLGO\HPHUJLQJDVDFRUHUHYHQXH HQJLQH7KHUHLVDVLJQL¿FDQWOHYHORILQWHUHVWLQEXLOGLQJRXW277SODWIRUPV+RZHYHUWKHLUYLDELOLW\LQWKHVKRUWWHUPUHPDLQVDFRQFHUQ 7KLVLVRZLQJWRWKHEDQGZLGWKFRQVWUDLQWVKLJKFRVWRIFXVWRPHUDFTXLVLWLRQGHSHQGHQFHRQDGYHUWLVHPHQWOHGPRGHOVDQGKLJKFRVW of data access. Company Overview: 7KH&RPSDQ\DQGLW¶VVXEVLGLDU\DUHSULPDULO\LQWRWHOHYLVLRQFRQWHQWSURGXFWLRQPDMRUO\RSHUDWLQJLQVRXWKHUQUHJLRQDOODQJXDJHV TV programs during 2016-17: Program name and language Channel / Client Category 9DDQL5DQL7DPLO 68179 Daily series Thamarai, Tamil 68179 Daily series &KLQQD3DSSD3HUL\D3DSSD6VV7DPLO 68179 Weekend series ,GKX2NND3UHPD.DWKD *(0,1,79 Daily series ,%&7DPLO79 18 MANAGEMENT DISCUSSION AND ANALYSIS ANNUAL REPORT 2016 - 2017 7KHPRVWSRSXODU7DPLOVHULDO³9DDQL5DQL´LVWRPDNHDEX]]LQ+LQGLODQJXDJHDOVRDVWKHULJKWVWRUHPDNHUHSURGXFHWKHVHULDODUH VROGWR=HH791HWZRUN/LPLWHG Celebrity Cricket League (CCL) 5DGDDQLVRQHDPRQJWKHSURPRWHUVRIWKH³&HOHEULW\&ULFNHW/HDJXH &&/ ´DQRQSURIHVVLRQDOFULFNHWLQJWRXUQDPHQWLQ7IRUPDW 6L[WKVHDVRQRIWKHOHDJXHZDVUHFHQWO\FRPSOHWHGEHWZHHQWHDPVIURP7HOXJX7DPLO.DQQDGD0DOD\DODP%KRMSXUL+LQGL3XQMDEL DQG%HQJDOL¿OPLQGXVWULHV7KHPDWFKHVZHUHSOD\HGDWGLIIHUHQWYHQXHVDFURVVWKHFRXQWU\DQGWHOHFDVWHGLQPXOWLSOHFKDQQHOVZLWK national presence. 1HZPHGLDDQGQRQ¿FWLRQ :LWKLQFUHDVHGLQWHUQHWVXEVFULSWLRQDQGDYDLODELOLW\RIORZFRVWVPDUWSKRQHVWKHGLJLWDOSODWIRUPVLQFOXGLQJPRELOHDSSVDUHJHDULQJ XSIRUDODQGVOLGHFKDQJH7KHIXWXUHLVVKDSLQJWRZDUGVHYHU\ZKHUHYLHZLQJIURPKRPHHQWHUWDLQPHQW2YHUWKHWRSSOD\HUVDUHQRZ PRUHLQWHUHVWHGWRLQYHVWIRUIXWXUHJURZWK7KH&RPSDQ\LVDOVRRSHUDWLQJRQVSRQVRUVKLSPRGHOWKHUHIRUHUHWDLQLQJWKH,3ULJKWVIRU IXWXUHH[SORLWDWLRQLQRWKHUSODWIRUPV%RWKRQDLUWHOHYLVLRQFRQWHQWVDQGDUFKLYHGFRQWHQWVDUHEHLQJXVHGWKURXJKWKHVHSODWIRUPV There are also plans for original programming for digital streaming. This will include both in house and third party platforms and contents. Financial Overview: 7KHGLVFXVVLRQDQGDQDO\VLVJLYHQEHORZUHODWHWRWKHDXGLWHG¿QDQFLDOVWDWHPHQWVRIWKH&RPSDQ\DQGVKRXOGEHUHDGLQFRQMXQFWLRQ ZLWKWKHPDQGUHODWHGQRWHVIRUWKH¿QDQFLDO\HDUHQGHGst March 2017. 'XULQJ WKH ¿QDQFLDO \HDU WKH RQO\ VXEVLGLDU\ RI WKH FRPSDQ\ 0V5DGDDQ 0HGLD 9HQWXUHV 3WH /WG 6LQJDSRUH KDG QR EXVLQHVV RSHUDWLRQ+RZHYHUDVSHUDSSOLFDEOHUXOHVDQGUHJXODWLRQVWKHFRQVROLGDWHG¿QDQFLDOVWDWHPHQWVZHUHSUHSDUHGIRUWKH\HDUDQGVDPH is also included for the discussion and analysis. Financial Performance: Revenues 7KHRSHUDWLQJUHYHQXHIRUWKH¿QDQFLDO\HDUERWKLQVWDQGDORQHDQGFRQVROLGDWHGEDVLVZDVGHFUHDVHGDWSHUFHQWIURP5V lakhs to Rs.3080.71 lakhs. Expenses The operating expenses both in standalone and consolidated basis were decreased during the year, by 4 percent, from Rs.2967.48 lakhs to Rs.2842.31 lakhs on standalone basis and from Rs.2969.41 lakhs to Rs.2843.84 lakhs on consolidated basis. The administration H[SHQVHVLQFXUUHGE\WKHVXEVLGLDU\FRPSDQ\LVUHÀHFWHGLQWKHFRQVROLGDWHGH[SHQVHV 7KH¿QDQFHFRVWIRUWKH\HDUZDVGHFUHDVHGE\SHUFHQWERWKRQVWDQGDORQHDQGFRQVROLGDWHGEDVLVIURP5VODNKVWR5V ODNKV7KHVXEVLGLDU\FRPSDQ\KDGQRWLQFXUUHGDQ\¿QDQFLDOFRVWGXULQJWKH\HDU 'HSUHFLDWLRQ DQG DPRUWL]DWLRQV H[SHQVHV IRU WKH \HDU ZDV GHFUHDVHG E\ SHUFHQW RQ VWDQGDORQH EDVLV IURP 5V ODNKV WR 5VODNKV$VWKHVXEVLGLDU\FRPSDQ\KDVQR¿[HGDVVHWVWKHLPSDFWRQFRQVROLGDWLRQRIGHSUHFLDWLRQDQGDPRUWL]DWLRQH[SHQVHV was nil. 3UR¿WDELOLW\ 7KHSUR¿WEHIRUHWD[ 3%7 IRUWKH\HDUERWKRQVWDQGDORQHDQGFRQVROLGDWHGEDVLVGHFUHDVHGDWSHUFHQWIURP5V ODNKVWR 5VODNKVRQVWDQGDORQHEDVLVDQGIURP5V ODNKVWR5V ODNKVRQFRQVROLGDWHGEDVLV$VSHUFHQWDJHRIUHYHQXHWKH VWDQGDORQH3%7LVGHFUHDVHGIURP SHUFHQWWRSHUFHQWDQGWKHFRQVROLGDWHG3%7LVGHFUHDVHGIURPSHUFHQWWR percent. 7KHSUR¿WDIWHUWD[ 3$7 IRUWKH\HDUERWKRQVWDQGDORQHDQGFRQVROLGDWHGEDVLVGHFUHDVHGDWSHUFHQWIURP5V ODNKVWR 5V ODNKVRQVWDQGDORQHEDVLVDQGIURP5V ODNKVWR5V ODNKVRQFRQVROLGDWHGEDVLV7KHVWDQGDORQH3$7PDUJLQLV GHFUHDVHGIURPSHUFHQWWRSHUFHQWDQGWKHFRQVROLGDWHG3$7PDUJLQLQFUHDVHGIURPSHUFHQWWRSHUFHQW 7KHHDUQLQJVSHUVKDUH (36 IRUWKH\HDUZHUHGHFUHDVHGRQVWDQGDORQHEDVLVIURP5HWR5HDQGRQFRQVROLGDWHGEDVLV from Re.0.16 to Re.0.15. Financial Position: Share Capital 7KHUHKDVEHHQQRFKDQJHLQWKHSRVLWLRQRIDXWKRUL]HGLVVXHGVXEVFULEHGDQGSDLGXSFDSLWDOGXULQJWKH¿QDQFLDO\HDUERWKIRU standalone and consolidated basis. Reserves and Surplus Securities Premium: The securities premium as on the balance sheet date was remained unchanged at Rs.753.65 lakhs, both in standalone and consolidated statements. Surplus: The standalone surplus was Rs.234.97 lakhs and on consolidated basis the surplus was Rs.207.42 lakhs. Foreign Currency Translation Reserve: 7KHIRUHLJQFXUUHQF\WUDQVODWLRQUHVHUYHLQWKHFRQVROLGDWHGVWDWHPHQWVZDV 5VODNKV MANAGEMENT DISCUSSION AND ANALYSIS 19 ANNUAL REPORT 2016 - 2017 Borrowings The loans outstanding as on 31st March 2017, on standalone basis, was Rs.861.23 lakhs, comprising of term loan of Rs.61.45 lakh and working capital cash credit of Rs.799.78 lakhs, which are secured against assets of the company. The term loan was decreased from 5V ODNKVWR5VRQUHSD\PHQWRILQVWDOOPHQWVDQGFDVKFUHGLWORDQZDVIURP5VODNKVWR5V ODNKVRQDYDLOLQJ RIDGGLWLRQDOIDFLOLW\IURPEDQNV6LQFHWKHVXEVLGLDU\FRPSDQ\GRHVQ¶WKDYHDQ\ERUURZLQJVWKHFRQVROLGDWHGERUURZLQJVZHUHVDPH as of the standalone position. Deferred Tax Liabilities 1HWGHIHUUHGWD[OLDELOLW\UHVXOWHGIURPWLPLQJGLIIHUHQFHRIGHSUHFLDWLRQRQ¿[HGDVVHWVDQGDPRUWLVDWLRQRIWHOHVHULDOFRVWVRQVWDQGDORQH EDVLVZDV5VODNKVDVDWWKHFXUUHQWEDODQFHVKHHWGDWHDJDLQVW5V ODNKVDVDWWKHSUHYLRXVEDODQFHVKHHWGDWH6LQFHWKH VXEVLGLDU\FRPSDQ\KDVQRWUHFRJQL]HGDQ\GHIHUUHGWD[OLDELOLWLHVWKHQHWGHIHUUHGWD[OLDELOLW\LQWKHFRQVROLGDWHVWDWHPHQWVZDVVDPH as of the standalone position. Other current and long term liabilities Other long term liabilities, were decreased on standalone basis from Rs.563.99 lakhs to Rs.509.81 lakhs and the consolidated position was same as of standalone, since the subsidiary had no such liabilities. Other current liabilities, on standalone basis increased from Rs.81.39 lakhs to Rs.88.64 lakhs and the consolidated position was same as of standalone, since the subsidiary had no such liabilities. Trade payables The trade payables as at 31st March 2017, on standalone basis decreased from Rs.231.72 lakhs to Rs.208.23 lakhs, and on consolidate basis decreased from Rs.237.29 lakhs to Rs.214.99 lakhs. Fixed Assets 7KHJURVVEORFNRI¿[HGDVVHWVDVDWWKHHQGRIFXUUHQW¿QDQFLDO\HDURQVWDQGDORQHEDVLVZDVLQFUHDVHGIURP5VODNKVWR 5VODNKVGXHWRWKHH[SHQVHVWRZDUGVVKLIWLQJRIRI¿FH7KHUHJLVWHUHGRI¿FHDQGHQWLUHRSHUDWLRQZDVVKLIWHGWRWKHQHZ ORFDWLRQHIIHFWLYHIURPVW$SULODQGDOOWKHGHSDUWPHQWVDUHQRZIXQFWLRQLQJIURPWKHQHZRI¿FH7KHVXEVLGLDU\FRPSDQ\GRHVQ¶W KDYHDQ\¿[HGDVVHWVDQGWKHFRQVROLGDWHGSRVLWLRQRI¿[HGDVVHWVZDVVDPHDVRIVWDQGDORQH¿JXUHV Noncurrent Investments 7KHUHZDVQRFKDQJHLQQRQFXUUHQWLQYHVWPHQWVGXULQJWKH\HDUERWKRQVWDQGDORQHDQGFRQVROLGDWHGEDVLV7KH\HDUHQGVWDQGDORQH balance was Rs.84.41 lakhs and the consolidated balance was Rs.75.06 lakhs. Long term loans and advances 7KHORQJWHUPORDQVDQGDGYDQFHVDVDWWKHHQGRIFXUUHQW¿QDQFLDO\HDUZDVLQFUHDVHGRQVWDQGDORQHEDVLVIURP5VODNKV to Rs.933.34 lakhs, which resulted mainly due to increase in prepaid taxes and tax credits. The consolidated sum of long term loans DQGDGYDQFHVZHUHVDPHDVRIWKHVWDQGDORQH¿JXUHV Other noncurrent assets Other noncurrent assets, on standalone basis were decreased from Rs.957.48 lakhs to Rs.939.45 lakhs, and the consolidated sum of RWKHUFXUUHQWDVVHWVZHUHVDPHDVRIWKHVWDQGDORQH¿JXUHV Current Assets ,QYHQWRULHVRQVWDQGDORQHEDVLVUHSUHVHQWLQJZRUNLQSURJUHVVZHUHGHFUHDVHGIURP5V ODNKVWR5V ODNKVDQG FRQVROLGDWHGLQYHQWRULHVZHUHVDPHDVRIWKHVWDQGDORQH¿JXUHV 7UDGH UHFHLYDEOHV RQ VWDQGDORQH EDVLV ZHUH GHFUHDVHG IURP 5V ODNKV WR 5V ODNKV RI ZKLFK GHEWV RXWVWDQGLQJ IRU PRUHWKDQVL[PRQWKVZHUHGHFUHDVHGPDUJLQDOO\IURP5VODNKVWR5VODNKV QHWRISURYLVLRQVDQGZULWWHQRII DQGRWKHU GHEWVZHUHGHFUHDVHGIURP5VODNKVWR5VODNKV7KHFRQVROLGDWHGEDODQFHRIWUDGHUHFHLYDEOHVZHUHVDPHDVRIWKH VWDQGDORQH¿JXUHV &DVKDQGFDVKHTXLYDOHQWVZHUHGHFUHDVHGPDUJLQDOO\RQVWDQGDORQHEDVLVIURP5VODNKVWR5VODNKVDQGRQFRQVROLGDWHG basis from Rs.12.10 lakhs to Rs.11.82 lakhs. 6KRUW WHUP ORDQV DQG DGYDQFHV RQ VWDQGDORQH EDVLV LQFUHDVHG IURP ODNKV WR 5V ODNKV DQG RQ FRQVROLGDWHG EDVLV increased from Rs.94.67 lakhs to Rs.275.72 lakhs. Other current assets both in standalone and consolidated balance sheet stands at Rs.300.00 lakhs without any change as compared WRWKHSUHYLRXV\HDU Cash Flow: &DVKÀRZVIURPRSHUDWLQJDFWLYLWLHV ,QWKHFXUUHQW¿QDQFLDO\HDUWKHFRPSDQ\JHQHUDWHGQHWFDVKRI5VODNKVIURPRSHUDWLQJDFWLYLWLHVDVDJDLQVW5V ODNKVQHW XWLOL]DWLRQLQSUHYLRXV¿QDQFLDO\HDUHYHQWKRXJKRSHUDWLQJSUR¿WVEHIRUHZRUNLQJFDSLWDOFKDQJHVKDVEHHQGHFUHDVHGIRUWKHFXUUHQW \HDUWR5VODNKVDVDJDLQVW5V ODNKVLQSUHYLRXV\HDU7KLVLVGXHWRXWLOL]DWLRQRI5VODNKVLQZRUNLQJFDSLWDOVDV FRPSDUHGWR5V ODNKVLQSUHYLRXV¿QDQFLDO\HDU &DVKÀRZVIURPLQYHVWLQJDFWLYLWLHV 7KHQHWFDVKXVHGLQLQYHVWLQJDFWLYLWLHVGXULQJWKHFXUUHQW¿QDQFLDO\HDUZDV5VODNKVDJDLQVW5VODNKVLQSUHYLRXV ¿QDQFLDO\HDU7KLVLVPDLQO\DWWULEXWDEOHWRSXUFKDVHRI¿[HGDVVHWVRI5VODNKVDJDLQVW5V ODNKVLQSUHYLRXV\HDU2WKHU FRPSRQHQWVDUHSURYLGHGLQFDVKÀRZVWDWHPHQW 20 MANAGEMENT DISCUSSION AND ANALYSIS ANNUAL REPORT 2016 - 2017 &DVKÀRZVIURP¿QDQFLQJDFWLYLWLHV 7KHQHWFDVKXWLOL]HGLQ¿QDQFLQJDFWLYLWLHVGXULQJWKHFXUUHQW¿QDQFLDO\HDUZDV5VODNKVDJDLQVWWKHQHWFDVKJHQHUDWHGRI 5VODNKVLQSUHYLRXV\HDU7KLVLVSULPDULO\DWWULEXWDEOHWRDYDLOLQJRIDGGLWLRQDOEDQNERUURZLQJ2WKHUFRPSRQHQWVDUHSURYLGHG LQFDVKÀRZVWDWHPHQW Internal Control System 7KHUHLVDVWURQJLQWHUQDOFRQWUROFXOWXUHLQWKHFRPSDQ\FRPPHQVXUDWLQJZLWKLW¶VVL]HDQGWKHQDWXUHRIRSHUDWLRQZKLFKDQGSURYLGLQJ UHOLDEOH¿QDQFLDODQGRSHUDWLRQDOLQIRUPDWLRQFRPSOLDQFHRIDSSOLFDEOHVWDWXWHVVDIHJXDUGLQJRIDVVHWVIURPXQDXWKRUL]HGXVHH[HFXWLQJ WUDQVDFWLRQVZLWKSURSHUDXWKRUL]DWLRQDQGHQVXULQJFRPSOLDQFHRIFRUSRUDWHSROLFLHV+LJKHVWVWDQGDUGRILQWHUQDOFRQWUROLVHQVXUHG E\UHJXODUDXGLWE\WKH,QWHUQDO$XGLWRUV7KHVLJQL¿FDQWREVHUYDWLRQVPDGHLQLQWHUQDODXGLWUHSRUWVRQLQWHUQDOFRQWUROGH¿FLHQFLHVLI DQ\DQGWKHVWDWXVRQLPSOHPHQWDWLRQRIUHFRPPHQGHGUHPHGLDOPHDVXUHVDUHSUHVHQWHGDQGUHYLHZHGE\WKH$XGLW&RPPLWWHHRIWKH %RDUG7KHVWDWXWRU\DXGLWRUVRIWKH&RPSDQ\KDYHLVVXHGDQDWWHVWDWLRQUHSRUWRQWKHLQWHUQDOFRQWURORYHU¿QDQFLDOUHSRUWLQJDVVWDWHG under section 143 of the Companies Act, 2013. Human Resources The company fosters a performance oriented work culture and offers amongst the best opportunities in the industry for professional DV ZHOO DV SHUVRQDO JURZWK RI LW¶V HPSOR\HHV 2YHU WKH \HDUV WKH FRPSDQ\ KDV EXLOW XS D VWURQJ KXPDQ UHVRXUFH VWUXFWXUH 7KH FRPSDQ\KDVTXDOL¿HGDQGH[SHULHQFHGWHDPRISURIHVVLRQDOVLQ&UHDWLYH3URGXFWLRQ0DUNHWLQJ)LQDQFH/HJDO 6HFUHWDULDO+5 Administration etc. Infrastructure 5DGDDQKDVRZQSRVWSURGXFWLRQIDFLOLWLHVWRVHUYHLW¶VSURMHFWV7KHVHIDFLOLWLHVFRPSULVHRIVHYHQHGLWVXLWHVLQFOXGLQJRQH¿OPHGLW ¿YHYRLFHVWXGLRVLQFOXGLQJRQH55 );DQGRQHH[FOXVLYHO\IRU$GSRVWLQJDQG)LQDO0DVWHULQJ7KHKDUGZDUHDQGVRIWZDUHKDYH EHHQVRXUFHGIURPUHSXWHGLQWHUQDWLRQDOYHQGRUVOLNH6RQ\0$&-9&6WHLQEHUJ3URWRROVDQG1XHQGRDPRQJRWKHUV7KHFRPSDQ\¶V VWDWHRIWKHDUWQRQOLQHDUHGLWLQJVXLWHVIURP0DWUL[DQG'LVFUHHW/RJLFUXQRQSRZHUIXO6*,DQG,%0ZRUNVWDWLRQVFRQQHFWHGE\D sophisticated broadband network. SCOT Analysis Strengths: Challenges: D*RRG+5DPRQJRWKHUVKLJKO\WDOHQWHG&UHDWLYH7HDP a. Controlling cost of production b. State of the art infrastructure b. Augmentation of customer base c. Successful Track Record in Tele-serials F'HSHQGHQFHRQOLPLWHGSHRSOHIRUFUHDWLYHFRQWHQW G%UDQG9DOXH d. Retention of talent e. Fully integrated operations H&KDQJLQJWDVWHVRIWKHYLHZHUVDXGLHQFH Threats: Opportunities: D1RQDYDLODELOLW\RIDGHTXDWHVNLOOHG7HFKQLFLDQV a. Growing no of channels E1RQDYDLODELOLW\RIIXOO\UHOLDEOHYLHZHUVKLSUDWLQJV\VWHP E,QFUHDVHGQRRI79KRXVHKROGVYLHZHUV F/RZHQWU\EDUULHUV F,PSURYHGWHFKQRORJ\WKHUHE\LQFUHDVHGDFFHVV G&KDQJLQJJRYHUQPHQWSROLFLHV d. Increasing Indian Diaspora across the world H3LUDF\ e. Interest for exchange of culture between countries Risks and concerns 7KHFRPSDQ\GHSHQGVRQUHODWLRQVKLSVZLWKEURDGFDVWLQJFKDQQHOVPDLQO\WKH681791HWZRUNPDUNHWLQJDJHQFLHVDQGRWKHULQGXVWU\ SDUWLFLSDQWVWRSURGXFHDQGH[SORLWRXUWHOHYLVLRQFRQWHQW$Q\GLVSXWHVZLWKWKHPFRXOGKDYHDPDWHULDODGYHUVHHIIHFWRQLW¶VDELOLW\RU willingness to produce and telecast the programs. &RPSDQ\ JHQHUDWHV UHYHQXHV IURP VDOH RI DGYHUWLVLQJ VSRWV GXULQJ WHOHFDVW RI LW¶V SURJUDP ZKLFK E\ ODUJH GHSHQG RQ SRSXODULW\ RIWKHSURJUDP$Q\IDLOXUHWRPDLQWDLQWKHYLHZHUVKLSFRXOGKDUPEXVLQHVVRUSUHYHQWIURPJURZLQJZKLFKFRXOGKDYHDPDWHULDO DGYHUVHHIIHFWRQWKHEXVLQHVVSURVSHFWV¿QDQFLDOFRQGLWLRQDQGUHVXOWVRIRSHUDWLRQV7KHYLHZHUVKLSUDWLQJPD\DOVRGHSHQGDQWRQ measurement methodologies which is an external factor to the company. 7KH FRPSDQ\¶V EXVLQHVV GHSHQGV LQ SDUW RQ WKH DGHTXDF\ HQIRUFHDELOLW\ DQG PDLQWHQDQFH RI LQWHOOHFWXDO SURSHUW\ ULJKWV LQ WKH HQWHUWDLQPHQWSURGXFWVDQGVHUYLFHV3LUDF\RIWKH&RPSDQ\¶VFRQWHQWSURGXFWVDQGLQWHOOHFWXDOSURSHUW\FRXOGUHVXOWLQDUHGXFWLRQRI WKHUHYHQXHVWKDWWKH&RPSDQ\UHFHLYHVIURPWKHOHJLWLPDWHVDOHOLFHQVLQJDQGGLVWULEXWLRQRILWVFRQWHQWDQGSURGXFWV7KH&RPSDQ\ GHYRWHVVXEVWDQWLDOHIIRUWVWRSURWHFWLQJLWVFRQWHQWSURGXFWVDQGLQWHOOHFWXDOSURSHUW\EXWWKHUHFDQEHQRDVVXUDQFHWKDWWKH&RPSDQ\¶V efforts to enforce its rights and combat piracy will be successful. 7KH&RPSDQ\GHULYHVVXEVWDQWLDOUHYHQXHVIURPWKHVDOHRIDGYHUWLVLQJVSRWVDQGDGHFUHDVHLQDGYHUWLVLQJH[SHQGLWXUHVRYHUDOORU UHGXFHGGHPDQGIRUWKH&RPSDQ\¶VRIIHULQJVFRXOGOHDGWRDUHGXFWLRQ'HFOLQHVLQFRQVXPHUVSHQGLQJGXHWRZHDNHFRQRPLFFRQGLWLRQV FRXOG DOVR LQGLUHFWO\ QHJDWLYHO\ LPSDFW WKH &RPSDQ\¶V DGYHUWLVLQJ UHYHQXHV E\ FDXVLQJ GRZQZDUG SULFLQJ SUHVVXUH RQ DGYHUWLVLQJ EHFDXVHDGYHUWLVHUVPD\QRWSHUFHLYHDVPXFKYDOXHIURPDGYHUWLVLQJLIFRQVXPHUVDUHSXUFKDVLQJIHZHURIWKHLUSURGXFWVRUVHUYLFHV 7KH&RPSDQ\¶VEXVLQHVVHVDUHVXEMHFWWRDYDULHW\RIODZVDQGUHJXODWLRQV7KH&RPSDQ\FRXOGLQFXUVXEVWDQWLDOFRVWVWRFRPSO\ZLWK new laws, regulations or policies or substantial penalties or other liabilities if it fails to comply with them. 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MANAGEMENT DISCUSSION AND ANALYSIS 21 ANNUAL REPORT 2016 - 2017 REPORT ON CORPORATE GOVERNANCE INTRODUCTION &RUSRUDWH*RYHUQDQFHVHWVRXWWKHIUDPHZRUNDQGSURFHVVE\ZKLFKLQVWLWXWLRQVWKURXJKWKHLUERDUGRIGLUHFWRUVDQGVHQLRUPDQDJHPHQW UHJXODWHWKHLUEXVLQHVVDFWLYLWLHV7KHVHSULQFLSOHVEDODQFHVDIHDQGVRXQGEXVLQHVVRSHUDWLRQVZKLOHFRPSO\LQJZLWKUHOHYDQWODZVDQG UHJXODWLRQV 22 REPORT ON CORPORATE GOVERNANCE ANNUAL REPORT 2016 - 2017 Composition of Board of Directors and Attendance: Number of board Attendance Number of Number of committee meetings held at AGM directorships in other positions held in other Name and designation Category during the year held on 12th Public Companies public companies September Held attended Chairman Member Chairman Member 2016 Mrs.Radha.Radikaa Sarathkumar, ([HFXWLYH Chairperson & Managing 43Yes------Director Director DIN:00238371 Mr. Ramanathan Sarathkumar, ([HFXWLYH 42Yes------'LUHFWRU±2SHUDWLRQV Director DIN:00238601 Non- Mr.Arunachalam H[HFXWLYH .ULVKQDPRRUWK\'LUHFWRU 44Yes1221 Independent DIN:00386122 Director Mr.Janardhan Non- .ULVKQDSUDVDG H[HFXWLYH 4 4 Yes -- 2 -- -- Director Independent DIN:03397294 Director Non- 0U9HOOD\DQ6HOYDUDM H[HFXWLYH Director 4 4 Yes -- 1 -- -- Independent DIN:00052444 Director 2WKHU GLUHFWRUVKLSV GR QRW LQFOXGH GLUHFWRUVKLSV RI SULYDWH OLPLWHG FRPSDQLHV 6HFWLRQ FRPSDQLHV DQG IRUHLJQ FRPSDQLHV &KDLUPDQVKLSV PHPEHUVKLSV RI ERDUG FRPPLWWHHV VKDOO LQFOXGH RQO\ DXGLW FRPPLWWHH DQG VWDNHKROGHUV¶ UHODWLRQVKLS FRPPLWWHH None of the directors are related to any other director, except Mr.Ramanathan Sarathkumar and Mrs.Radha Radikaa Sarathkumar being spouse. 2. Board Committees a) Audit Committee 7KHDXGLWFRPPLWWHHLVFRQVWLWXWHGLQOLQHZLWKWKHSURYLVLRQVRI5HJXODWLRQRIWKH6(%,/LVWLQJ5HJXODWLRQVUHDGZLWK6HFWLRQRI the Companies Act. $XGLW&RPPLWWHHSURYLGHVGLUHFWLRQWRWKHDXGLWDQGULVNPDQDJHPHQWIXQFWLRQLQWKH&RPSDQ\DQGPRQLWRUVWKHTXDOLW\RILQWHUQDODXGLW and it functions as per the terms of reference made to it, which, inter-aliaLQFOXGHV RYHUVHHLQJWKH¿QDQFLDOUHSRUWLQJSURFHVVWRHQVXUH SURSHUGLVFORVXUHRI¿QDQFLDOVWDWHPHQWV UHFRPPHQGLQJDSSRLQWPHQWUHPRYDORIVWDWXWRU\DXGLWRUV¿[LQJWKHLUUHPXQHUDWLRQUHYLHZ DQGPRQLWRUWKHLULQGHSHQGHQFHDQGSHUIRUPDQFH UHYLHZLQJWKHDQQXDO¿QDQFLDOVWDWHPHQWVEHIRUHVXEPLVVLRQWRWKH%RDUG UHYLHZ DQG PRQLWRU RI UHYLHZLQJ DGHTXDF\ RI LQWHUQDO FRQWURO V\VWHPV UHFRPPHQGLQJ DSSRLQWPHQW DQG UHPXQHUDWLRQ RI LQWHUQDO DXGLWRUV UHYLHZLQJ¿QGLQJVLQWKHLQWHUQDODXGLWUHSRUWGLVFXVVLQJWKHVFRSHRIDXGLWZLWKDXGLWRUV UHYLHZDQGDSSURYDORIWUDQVDFWLRQVZLWK UHODWHGSDUWLHV UHYLHZIXQFWLRQLQJRIZKLVWOHEORZHUSROLF\HWF7KHWHUPVRIUHIHUHQFHWRWKHDXGLWFRPPLWWHHLVSXEOLVKHGLQWKHZHEVLWH of the company. 'XULQJWKH¿QDQFLDO\HDUWKH$XGLW&RPPLWWHHKDVPHWIRXU WLPHVRQth May 2016, 12th August 2016, 14th1RYHPEHUDQG 14th )HEUXDU\ 1HFHVVDU\ TXRUXP ZDV SUHVHQW IRU DOO PHHWLQJV 0LQXWHV RI HDFK PHHWLQJ ZDV SODFHG EHIRUH WKH ERDUG DQG GLVFXVVHG 7KH &KLHI )LQDQFLDO 2I¿FHU UHSUHVHQWDWLYHV RI ,QWHUQDO$XGLWRUV 6WDWXWRU\$XGLWRUV ZHUH DOVR LQYLWHG WR WKH PHHWLQJV Company Secretary acts as secretary to the committee. &RPSRVLWLRQRIWKH$XGLW&RPPLWWHHDQGDWWHQGDQFHGXULQJWKH¿QDQFLDO\HDU No of meetings during the year Name Designation Held Attended 0U$.ULVKQDPRRUWK\ Chairman 4 4 Mr.R Sarathkumar Member 4 2 0U-.ULVKQDSUDVDG Member 4 4 0U96HOYDUDM Member 4 4 $OO WKH PHPEHUV RI WKH$XGLW FRPPLWWHH DUH ¿QDQFLDOO\ OLWHUDWH DQG WKH &KDLUPDQ LV HTXLSSHG ZLWK VRXQG NQRZOHGJH LQ ¿QDQFLDO management and accounting. REPORT ON CORPORATE GOVERNANCE 23 ANNUAL REPORT 2016 - 2017 b) Stakeholders’ Relationship Committee 7KH6WDNHKROGHUV5HODWLRQVKLS&RPPLWWHHLVFRQVWLWXWHGLQOLQHZLWKWKHSURYLVLRQVRI5HJXODWLRQRIWKH6(%,/LVWLQJ5HJXODWLRQVUHDG with Section 178 of the Companies Act, to look into, inter aliaWKHLQYHVWRUJULHYDQFHVVXFKDVWUDQVIHURUFUHGLWRIVKDUHVQRQUHFHLSW RIGLYLGHQGQRWLFHVDQQXDOUHSRUWVHWF During the year the committee has met once, on 28th0D\7KHUHTXLVLWHTXRUXPZDVSUHVHQWIRUWKHPHHWLQJ &RPSRVLWLRQRIWKH6WDNHKROGHUV¶5HODWLRQVKLS&RPPLWWHHDQGDWWHQGDQFHGXULQJWKH\HDU No of meetings during the year Name Designation Held Attended 0U-.ULVKQDSUDVDG Chairman 1 1 Mr.R Sarathkumar Member 1 1 0U96HOYDUDM Member 1 1 &KDLUPDQRIWKHFRPPLWWHHLVDQRQH[HFXWLYHLQGHSHQGHQWGLUHFWRU$VRQFORVXUHRIWKH\HDUXQGHUUHSRUWQRFRPSODLQWZDVSHQGLQJ 1DPH'HVLJQDWLRQDQGDGGUHVVRI&RPSOLDQFH2I¿FHU 0U.DQKX&KDUDQ6DKX&RPSDQ\6HFUHWDU\ 5DGDDQ0HGLDZRUNV,QGLD/LPLWHG 1R-D\DPPDO5RDG7H\QDPSHW&KHQQDL± 3KRQH± )D[± (PDLOIRULQYHVWRUJULHYDQFHV±LQYHVWRUV#UDGDDQWY c) Nomination and Remuneration Committee: 7KH6WDNHKROGHUV5HODWLRQVKLS&RPPLWWHHLVFRQVWLWXWHGLQOLQHZLWKWKHSURYLVLRQVRI5HJXODWLRQ RIWKH6(%,/LVWLQJ5HJXODWLRQVUHDG ZLWK6HFWLRQRIWKH&RPSDQLHV$FW7KHFRPPLWWHHFRPSULVHVRIWKUHH QRQH[HFXWLYHLQGHSHQGHQWGLUHFWRUV During the year the committee has met once, on 12th$XJXVW7KHUHTXLVLWHTXRUXPZDVSUHVHQWIRUWKHPHHWLQJ Composition of the Nomination & Remuneration Committee and attendance during the year: No of meetings during the year Name Designation Held Attended 0U$.ULVKQDPRRUWK\ Chairman 1 1 0U-.ULVKQDSUDVDG Member 1 1 0U96HOYDUDM Member 1 1 Roles and responsibilities of the nomination and remuneration committee are as under: D )RUPXODWLRQRIWKHFULWHULDIRUGHWHUPLQLQJTXDOL¿FDWLRQVSRVLWLYHDWWULEXWHVDQGLQGHSHQGHQFHRIDGLUHFWRUDQGUHFRPPHQG WRWKH%RDUGDSROLF\UHODWLQJWRWKHUHPXQHUDWLRQRIWKHGLUHFWRUVNH\PDQDJHULDOSHUVRQQHODQGRWKHUHPSOR\HHV E )RUPXODWLRQRIFULWHULDIRUHYDOXDWLRQRI,QGHSHQGHQW'LUHFWRUVDQGWKH%RDUG F 'HYLVLQJDSROLF\RQ%RDUGGLYHUVLW\ G ,GHQWLI\LQJSHUVRQVZKRDUHTXDOL¿HGWREHFRPHGLUHFWRUVDQGZKRPD\EHDSSRLQWHGLQVHQLRUPDQDJHPHQWLQDFFRUGDQFH ZLWKWKHFULWHULDODLGGRZQDQGUHFRPPHQGWRWKH%RDUGWKHLUDSSRLQWPHQWDQGUHPRYDO The nomination and remuneration policy of the Company along with terms of reference to the committee is published on website of the &RPSDQ\7KH&RPSDQ\IROORZVDSHUIRUPDQFHEDVHGUHPXQHUDWLRQSROLF\ZKLFKHQDEOHVWRDWWUDFWUHWDLQDQGPRWLYDWHWKHHPSOR\HHV WRFUHDWHKLJKSHUIRUPDQFHFXOWXUH:KROHWLPHH[HFXWLYHGLUHFWRUVRQO\UHFHLYHUHJXODUUHPXQHUDWLRQ0UV55DGLNDD6DUDWKNXPDULV QRWHQWLWOHGWRDQ\UHPXQHUDWLRQDV0DQDJLQJ'LUHFWRUDQGVKHUHFHLYHVRQO\SURIHVVLRQDOIHHVIRUDFWLQJLQFUHDWLYHGLUHFWLRQRIYDULRXV SURJUDPVVKRZVHYHQWVHWF7KHQRQH[HFXWLYHGLUHFWRUVDUHLQFHQWLYL]HGE\SD\PHQWRIVLWWLQJIHHVIRUDWWHQGLQJERDUGFRPPLWWHH meetings. 'HWDLOVRISD\PHQWVWRWKHGLUHFWRUVIRU¿QDQFLDO\HDUHQGHGst March 2017: Name Professional Fees / Remuneration (in Rs) Sitting fees (in Rs) Ms. R. Radikaa Sarathkumar 1,93,50,000 1,/ Mr.R.Sarathkumar 42,00,000 1,/ 0U$.ULVKQDPRRUWK\ 1,/ 1,50,000 0U-.ULVKQD3UDVDG 1,/ 1,60,000 0U96HOYDUDM 1,/ 1,60,000 24 REPORT ON CORPORATE GOVERNANCE ANNUAL REPORT 2016 - 2017 3. General Body Meeting D 'HWDLOVRIODVWWKUHH$QQXDO*HQHUDO0HHWLQJ Year Date Time Venue 2016 12th September 2016 10.00A.M. *XLQG\/RGJH0DGUDV5DFH&OXE*XLQG\&KHQQDL 2015 25th September 2015 10.00A.M. *XLQG\/RGJH0DGUDV5DFH&OXE*XLQG\&KHQQDL 2014 29th September 2014 10.00A.M. *XLQG\/RGJH0DGUDV5DFH&OXE*XLQG\&KHQQDL E 1RH[WUDRUGLQDU\JHQHUDOPHHWLQJRIWKHPHPEHUVZDVKHOGGXULQJWKH¿QDQFLDO\HDUHQGHG F 'HWDLOVRIWKHVSHFLDOUHVROXWLRQSDVVHGDWWKHDERYHVWDWHGDQQXDOJHQHUDOPHHWLQJV At the Annual General Meeting held on 12th September 2016 $SSURYDOIRU$OWHUDWLRQRI$UWLFOHVRI$VVRFLDWLRQ 5HDSSRLQWPHQWRI0UV55DGLNDD6DUDWKNXPDUDV&KDLUSHUVRQ 0DQDJLQJ'LUHFWRU 5HDSSRLQWPHQWRI0U56DUDWKNXPDUDV:KROHWLPH'LUHFWRU $XWKRULVDWLRQWR%RUURZ)XQGVLQH[FHVVRISDLGXSFDSLWDODQGIUHHUHVHUYHV At the Annual General Meeting held on 25th September 2015 $SSURYDOIRULQFUHDVLQJUHPXQHUDWLRQRI0U5DPDQDWKDQ6DUDWKNXPDU:KROHWLPH'LUHFWRU At the Annual General Meeting held on 29th September 2014 $SSURYDOIRUDSSRLQWPHQWRI0V5D\DQHGDXJKWHURI0UV55DGLNDD6DUDWKNXPDUDVDQ([HFXWLYH7UDLQHH G 'XULQJWKH\HDUXQGHUUHYLHZQRVSHFLDOUHVROXWLRQKDVEHHQSDVVHGWKURXJKWKHH[HUFLVHRISRVWDOEDOORW1RQHRIWKHLWHPVWREH WUDQVDFWHGDWWKHHQVXLQJPHHWLQJLVUHTXLUHGWREHSDVVHGE\SRVWDOEDOORW 4. 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General Shareholders Information D 'DWHWLPHDQGYHQXHRI$QQXDO*HQHUDO0HHWLQJ th September, 2017 11:00 a.m., at Madras Race Club, Guindy /RGJH*XLQG\&KHQQDL E )LQDQFLDO&DOHQGDU L )LUVWTXDUWHU $SULO±-XQH 5HVXOW±E\VHFRQGZHHNRI6HSWHPEHU 2017 LL 6HFRQG TXDUWHU -XO\ ± 6HSWHPEHU 5HVXOW ± E\ VHFRQG ZHHN RI December 2017 LLL 7KLUG TXDUWHU 2FWREHU ± 'HFHPEHU 5HVXOW ± E\ VHFRQG ZHHN RI February 2018 LY)RXUWK TXDUWHU -DQXDU\ ± 0DUFK 5HVXOW ± E\ IRXUWK ZHHN RI 0D\ 2018 F 'DWHRI%RRN&ORVXUH th September, 2017 to 30th6HSWHPEHU ERWKGD\VLQFOXVLYH G 'LYLGHQGSD\PHQWGDWH 1RGLYLGHQGLVUHFRPPHQGHG REPORT ON CORPORATE GOVERNANCE 25 ANNUAL REPORT 2016 - 2017 H /LVWLQJRQ6WRFN([FKDQJHV 6KDUHVRIWKHFRPSDQ\DUHOLVWHGLQ± 7KH1DWLRQDO6WRFN([FKDQJHRI,QGLD/LPLWHG 16( 6KDUHV RI WKH FRPSDQ\ DUH DOVR WUDGHG LQ WKH %RPED\ 6WRFN ([FKDQJH/LPLWHG %6( XQGHUSHUPLWWHGFDWHJRU\ I 6WRFN&RGH %6(± 16(±5$'$$1 J /LVWLQJ)HHV /LVWLQJIHHVDVDSSOLFDEOHKDYHEHHQSDLG K 5HJLVWHUHG2I¿FH$GGUHVVIRUFRPPXQLFDWLRQ 1R-D\DPPDO5RDG7H\QDPSHW&KHQQDL,QGLD 3KRQH± )D[± L 6WRFN0DUNHW'DWD 0RQWKO\KLJKDQGORZTXRWDWLRQVDVZHOODVWKHYROXPHRIVKDUHVWUDGHGGXULQJHDFKPRQWKIURP$SULOWR0DUFKRQ16(DQG %6( BSE NSE PERIOD High Price Low Price Total number of High Price Low Price Total number of (Rs.) (Rs.) Shares traded (Rs.) (Rs.) Shares traded April, 2016 1.83 1.41 1,02,331 1.85 1.65 44,296 May, 2016 1.84 1.38 2,11,467 1.80 1.60 1,83,775 June, 2016 2.10 1.50 3,39,780 1.90 1.60 47,668 July, 2016 2.05 1.67 1,36,551 1.85 1.70 17,811 August, 2016 2.00 1.67 2,34,223 1.95 1.75 1,41,087 September, 2016 1.90 1.48 74,691 1.85 1.65 19,474 October, 2016 2.00 1.71 1,53,473 2.05 1.70 60,771 1RYHPEHU 2.10 1.62 1,33,130 2.00 1.85 8,503 December, 2016 1.70 1.19 1,09,181 1.85 1.45 12,953 January, 2017 1.67 1.13 2,34,400 1.70 1.45 62,187 February, 2017 1.75 1.41 1,00,969 1.80 1.65 1,451 March, 2017 1.61 1.14 1,33,696 1.60 1.55 11,250 Sources: www.bseindia.com; www.nseindia.com - 3HUIRUPDQFHLQFRPSDULVRQWR6WRFN([FKDQJH,QGH[HV FORVLQJKLJK 6(16(;&ORVLQJ+LJK RADAAN - Closing High N 5HJLVWUDU 6KDUH7UDQVIHU$JHQW 0V&DPHR&RUSRUDWH6HUYLFHV/LPLWHG 6XEUDPDQLDQ%XLOGLQJ 1R&OXE+RXVH5RDG&KHQQDL± 3KRQH1R Fax No. +91-44-2846 0129 HPDLO±FDPHR#FDPHRLQGLDFRP O 6KDUH7UDQVIHU6\VWHP 7UDQVIHURIVKDUHVKHOGLQHOHFWURQLFIRUPLVGRQHWKURXJKGHSRVLWRULHVZLWKRXWLQYROYHPHQWRIWKHFRPSDQ\,QFDVHRIWUDQVIHURIVKDUH KHOGLQSK\VLFDOIRUPWKHWUDQVIHUGRFXPHQWVFDQEHORGJHGZLWKWKHFRPSDQ\¶V5HJLVWUDUDQG6KDUH7UDQVIHUV$JHQWVDWWKHJLYHQ address. If the documents lodged are complete in all respects, transfer of shares held in physical form, are normally effected within 15 days from the date of lodgment. 26 REPORT ON CORPORATE GOVERNANCE ANNUAL REPORT 2016 - 2017 P 6KDUHKROGLQJVDVRQst March 2017 L 'LVWULEXWLRQRIVKDUHKROGLQJ Shareholders Shares Shareholding Number Percentage Number Percentage Upto 2500 10,234 88.49 57,14,508 10.55 ± 694 6.00 27,35,904 5.05 ± 331 2.86 25,83,370 4.77 ± 104 0.90 12,87,673 2.38 ± 55 0.48 9,90,428 1.83 ± 30 0.26 6,98,474 1.29 ± 65 0.56 22,21,565 4.10 DQGDERYH 52 0.45 3,79,29,618 70.03 Total 11565 100.00 5,41,61,540 100.00 LL &DWHJRU\ZLVH6KDUHKROGLQJ3DWWHUQ Category No of shares Voting Strength (%) 3URPRWHUV 3URPRWHUV*URXS 2,78,49,790 51.42 )RUHLJQ,QVWLWXWLRQDO,QYHVWRUV 1,50,000 0.28 %RGLHV&RUSRUDWH 60,10,182 11.10 15,V2&%V)RUHLJQ1DWLRQDOV 3,00,450 0.56 Clearing Member 19,380 0.04 Trusts 22,700 0.04 ,QGLYLGXDOVDQGRWKHUVJHQHUDOSXEOLF 1,98,09,038 36.56 TOTAL 5,41,61,540 100.00 LLL 6KDUHKROGLQJE\GLUHFWRUVSURPRWHUV Name Number of shares Percentage Mrs. R Radikaa Sarathkumar 2,78,49,790 51.42 Mr.R Sarathkumar Nil 0 0U$.ULVKQDPRRUWK\ Nil 0 0U-.ULVKQD3UDVDG Nil 0 0U96HOYDUDM Nil 0 Total 2,78,49,790 51.42 Q 'HPDWHULDOL]DWLRQRI6KDUHVDQG/LTXLGLW\ (TXLW\VKDUHVRIWKHFRPSDQ\DUHUHJXODUO\WUDGHGRQ16(DQG%6(LQHOHFWURQLFIRUP$VRQst March 2017 total no of shares LQGHPDWHULDOL]HGIRUPZDV UHSUHVHQWLQJ RIWKHWRWDOVKDUHFDSLWDO7KHVHVKDUHVDUHKHOGLQERWKWKHGHSRVLWRULHV LQ,QGLDYL]1DWLRQDO6HFXULWLHV'HSRVLWRU\/LPLWHGDQG&HQWUDO'HSRVLWRULHV6HUYLFHV ,QGLD /LPLWHG7KH,QWHUQDWLRQDO6HFXULWLHV ,GHQWL¿FDWLRQ1XPEHU ,6,1 DOORWWHGWRHTXLW\VKDUHVRIWKHFRPSDQ\LV,1() 2XWVWDQGLQJ*'5V$'5V:DUUDQWVRUDQ\&RQYHUWLEOHLQVWUXPHQWVFRQYHUVLRQGDWHDQGOLNHO\LPSDFWRQHTXLW\ 7KHFRPSDQ\KDVQRWLVVXHGDQ\*OREDOGHSRVLWRU\UHFHLSW$PHULFDQ'HSRVLWRU\5HFHLSWZDUUDQWRUDQ\FRQYHUWLEOHLQVWUXPHQW ZKLFKLVOLNHO\WRKDYHLPSDFWRQWKHFRPSDQ\¶VHTXLW\ S 3ODQW/RFDWLRQV 7KH&RPSDQ\LVLQWR0HGLDDQG(QWHUWDLQPHQW,QGXVWU\DQGRSHUDWHVIURPLWV5HJLVWHUHGRI¿FHDW1R-D\DPPDO5RDG7H\QDPSHW &KHQQDL±7KHSULPDU\EXVLQHVVRIWKHFRPSDQ\LVSURGXFWLRQRIHQWHUWDLQPHQWFRQWHQWVDQGDVVKRRWLQJRIWKHFRQWHQW WDNHVSODFHRQGLIIHUHQWORFDWLRQVEDVHGRQUHTXLUHPHQWRISDUWLFXODUVWRU\OLQHKHQFHVXFKORFDWLRQVPD\QRWEHVSHFL¿HG )RUDQGRQEHKDOIRIWKH%RDUGRI'LUHFWRU 3ODFH &KHQQDL -sd- Date: 29th August 2017 R Radikaa Sarathkumar Chairperson & Managing Director REPORT ON CORPORATE GOVERNANCE 27 ANNUAL REPORT 2016 - 2017 Declaration pursuant to Regulation 34(3) read with Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, regarding adherence to the Code of Conduct by the Board Members and Senior Management Personnel 7KLV LV WR FRQ¿UP WKDW WKH FRPSDQ\ KDG DGRSWHG D &RGH RI &RQGXFW IRU LWV ERDUG PHPEHUV DQG VHQLRU HPSOR\HHV LQFOXGLQJ WKH 0DQDJLQJ'LUHFWRUDQG([HFXWLYH'LUHFWRUV7KH&RGHLVDYDLODEOHRQWKH&RPSDQ\¶VZHEVLWH ,FRQ¿UPWKDWWKH&RPSDQ\KDVLQUHVSHFWRIWKH¿QDQFLDO\HDUHQGHGst0DUFKUHFHLYHGIURPWKH6HQLRU0DQDJHPHQW7HDPRI WKH&RPSDQ\DQGWKH0HPEHUVRIWKH%RDUGRI'LUHFWRUVDGHFODUDWLRQRIFRPSOLDQFHZLWKWKH&RGHRI&RQGXFWDVDSSOLFDEOHWRWKHP -sd- Chennai R.Radikaa Sarathkumar 29th August 2017 Chairperson & Managing Director AUDITORS CERTIFICATE ON CORPORATE GOVERNANCE :HKDYHH[DPLQHGFRPSOLDQFHRIFRQGLWLRQVRI&RUSRUDWH*RYHUQDQFHE\0V5DGDDQ0HGLDZRUNV,QGLD/LPLWHGIRUWKH¿QDQFLDO\HDU ended 31st0DUFKDVVWLSXODWHGXQGHU5HJXODWLRQQXPEHUVWRFODXVH E WR L RI5HJXODWLRQ 6FKHGXOH,,DQG6FKHGXOH 9 SDUDJUDSKV&'DQG(RIWKH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD /2'5 5HJXODWLRQV 7KH&RPSDQ\¶VPDQDJHPHQWLVUHVSRQVLEOHIRUFRPSOLDQFHZLWKWKHFRQGLWLRQVRIWKH&RUSRUDWH*RYHUQDQFH:HKDYHEURDGO\UHYLHZHG WKHSURFHGXUHVDGRSWHGE\WKH&RPSDQ\IRUHQVXULQJFRPSOLDQFHZLWKWKHFRQGLWLRQVRI&RUSRUDWH*RYHUQDQFHDQGLPSOHPHQWDWLRQ WKHUHRI2XUUHYLHZZDVQHLWKHUDQDXGLWQRUDQH[SUHVVLRQRIRSLQLRQRQWKH¿QDQFLDOVWDWHPHQWRIWKHFRPSDQ\ :HKHUHE\FHUWLI\WKDWLQRXURSLQLRQDQGWRWKHEHVWRIRXULQIRUPDWLRQDQGEDVHGRQWKHUHFRUGVIXUQLVKHGIRURXUYHUL¿FDWLRQDQGWKH H[SODQDWLRQVJLYHQWRXVE\WKH&RPSDQ\LWVRI¿FHUVDQGDJHQWVWKH&RPSDQ\KDVGXULQJWKH\HDUHQGHGVW0DUFKFRPSOLHG ZLWKWKHDSSOLFDEOHFRQGLWLRQVRI&RUSRUDWH*RYHUQDQFH :HIXUWKHUZLVKWRVWDWHWKDWRXURSLQLRQUHJDUGLQJVXFKFRPSOLDQFHLVQHLWKHUDQDVVXUDQFHDVWRWKHIXWXUHYLDELOLW\RIWKHFRPSDQ\QRU RIWKHHI¿FLHQF\RUHIIHFWLYHQHVVZLWKZKLFKWKH0DQDJHPHQWKDVFRQGXFWHGWKHDIIDLUVRIWKHFRPSDQ\GXULQJWKHVDLG¿QDQFLDO\HDU )RU&1*61 $662&,$7(6//3 Chartered Accountants 3ODFH &KHQQDL F.R.No.004915S/S200036 Dated: 26.05.2017 -sd- C N GANGADARAN 3DUWQHU Memb.No.11205 &HUWL¿FDWLRQE\WKH&KDLUSHUVRQ 0DQDJLQJ'LUHFWRUDQGWKH&KLHI)LQDQFLDO2I¿FHU To, 7KH%RDUGRI'LUHFWRUV 5DGDDQ0HGLDZRUNV,QGLD/LPLWHG :H55DGLNDD6DUDWKNXPDU&KDLUSHUVRQ 0DQDJLQJ'LUHFWRUDQG0.DYLULPDQL&KLHI)LQDQFLDO2I¿FHURI0V5DGDDQ0HGLDZRUNV ,QGLD/LPLWHGFHUWLI\WKDW :HKDYHUHYLHZHG¿QDQFLDOVWDWHPHQWVDQGWKHFDVKÀRZVWDWHPHQWIRUWKH\HDUHQGHGst March 2017 and that to the best of our knowledge and belief: D WKHVHVWDWHPHQWVGRQRWFRQWDLQDQ\PDWHULDOO\XQWUXHVWDWHPHQWRURPLWDQ\PDWHULDOIDFWRUFRQWDLQVWDWHPHQWVWKDWPLJKW be misleading; 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There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year which are IUDXGXOHQWLOOHJDORUYLRODWLYHRIWKHFRPSDQ\¶VFRGHRIFRQGXFW :H DFFHSW UHVSRQVLELOLW\ IRU HVWDEOLVKLQJ DQG PDLQWDLQLQJ LQWHUQDO FRQWUROV IRU ¿QDQFLDO UHSRUWLQJ7KLV LV PRQLWRUHG E\ ,QWHUQDO $XGLWZKLFKHQFRPSDVVHVWKHH[DPLQDWLRQDQGHYDOXDWLRQRIWKHDGHTXDF\DQGHIIHFWLYHQHVVRILQWHUQDOFRQWUROV\VWHPRIWKH FRPSDQ\ SHUWDLQLQJ WR ¿QDQFLDO UHSRUWLQJ ,QWHUQDO$XGLWRUV UHSRUW VLJQL¿FDQW LVVXHV WR WKH$XGLW &RPPLWWHH 7KH$XGLWRUV DQG $XGLW&RPPLWWHHDUHDSSULVHGRIDQ\FRUUHFWLYHDFWLRQWDNHQZLWKUHJDUGWRVLJQL¿FDQWGH¿FLHQFLHVDQGPDWHULDOZHDNQHVVHVRI such internal controls. :HKDYHLQGLFDWHGWRWKH$XGLWRUVDQGWKH$XGLWFRPPLWWHH D VLJQL¿FDQWFKDQJHVLIDQ\LQLQWHUQDOFRQWURORYHU¿QDQFLDOUHSRUWLQJ E VLJQL¿FDQWFKDQJHVLIDQ\LQDFFRXQWLQJSROLFLHV DQG F LQVWDQFHVRIVLJQL¿FDQWIUDXGRIZKLFKZHKDYHEHFRPHDZDUHDQGWKHLQYROYHPHQWWKHUHLQLIDQ\RIWKHPDQDJHPHQWRUDQ HPSOR\HHKDYLQJDVLJQL¿FDQWUROHLQWKHFRPSDQ\¶VLQWHUQDOFRQWUROV\VWHPRYHU¿QDQFLDOUHSRUWLQJ 55DGLNDD6DUDWKNXPDU 0.DYLULPDQL &KDLUSHUVRQ 0DQDJLQJ'LUHFWRU &KLHI)LQDQFLDO2I¿FHU 3ODFH &KHQQDL Date : 26th May, 2017 28 REPORT ON CORPORATE GOVERNANCE ANNUAL REPORT 2016 - 2017 INDEPENDENT AUDITOR'S REPORT ON STANDALONE FINANCIAL STATEMENTS 7RWKH0HPEHUVRI5$'$$10(',$:25.6,1',$/,0,7(' Report on the Financial Statements :HKDYHDXGLWHGWKHDFFRPSDQ\LQJ¿QDQFLDOVWDWHPHQWVRIM/s RADAAN MEDIAWORKS INDIA LIMITED WKH&RPSDQ\ ZKLFK FRPSULVHWKH%DODQFHVKHHWDVDWst0DUFKWKH6WDWHPHQWRI3UR¿WDQG/RVVDQGWKH&DVK)ORZ6WDWHPHQWIRUWKH¿QDQFLDO SHULRGWKHQHQGHGDQGDVXPPDU\RIVLJQL¿FDQWDFFRXQWLQJSROLFLHVDQGRWKHUH[SODQDWRU\LQIRUPDWLRQ Management’s Responsibility for the Financial Statements 7KH&RPSDQ\¶V%RDUGRI'LUHFWRUVLVUHVSRQVLEOHIRUWKHPDWWHUVVWDWHGLQ6HFWLRQ RIWKH&RPSDQLHV$FW ³WKH$FW´ ZLWK UHVSHFWWRWKHSUHSDUDWLRQRIWKHVH¿QDQFLDOVWDWHPHQWVWKDWJLYHDWUXHDQGIDLUYLHZRIWKH¿QDQFLDOSRVLWLRQ¿QDQFLDOSHUIRUPDQFH DQGFDVKÀRZVRIWKH&RPSDQ\LQDFFRUGDQFHZLWKWKHDFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQ,QGLDLQFOXGLQJWKH$FFRXQWLQJ 6WDQGDUGVVSHFL¿HGXQGHU6HFWLRQRIWKH$FWUHDGZLWK5XOHRIWKH&RPSDQLHV $FFRXQWV 5XOHV7KLVUHVSRQVLELOLW\DOVR LQFOXGHVPDLQWHQDQFHRIDGHTXDWHDFFRXQWLQJUHFRUGVLQDFFRUGDQFHZLWKWKHSURYLVLRQVRIWKH$FWIRUVDIHJXDUGLQJRIWKHDVVHWVRIWKH &RPSDQ\DQGIRUSUHYHQWLQJDQGGHWHFWLQJIUDXGVDQGRWKHULUUHJXODULWLHV VHOHFWLRQDQGDSSOLFDWLRQRIDSSURSULDWHDFFRXQWLQJSROLFLHV PDNLQJMXGJPHQWVDQGHVWLPDWHVWKDWDUHUHDVRQDEOHDQGSUXGHQW DQGGHVLJQLPSOHPHQWDWLRQDQGPDLQWHQDQFHRIDGHTXDWHLQWHUQDO ¿QDQFLDOFRQWUROVWKDWZHUHRSHUDWLQJHIIHFWLYHO\IRUHQVXULQJWKHDFFXUDF\DQGFRPSOHWHQHVVRIWKHDFFRXQWLQJUHFRUGVUHOHYDQWWRWKH SUHSDUDWLRQDQGSUHVHQWDWLRQRIWKH¿QDQFLDOVWDWHPHQWVWKDWJLYHDWUXHDQGIDLUYLHZDQGDUHIUHHIURPPDWHULDOPLVVWDWHPHQWZKHWKHU due to fraud or error. 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Opinion ,QRXURSLQLRQDQGWRWKHEHVWRIRXULQIRUPDWLRQDQGDFFRUGLQJWRWKHH[SODQDWLRQVJLYHQWRXVWKHDIRUHVDLG¿QDQFLDOVWDWHPHQWVJLYH WKHLQIRUPDWLRQUHTXLUHGE\WKH$FWLQWKHPDQQHUVRUHTXLUHGDQGJLYHDWUXHDQGIDLUYLHZLQFRQIRUPLW\ZLWKWKHDFFRXQWLQJSULQFLSOHV generally accepted in India: D LQWKHFDVHRI%DODQFH6KHHWRIWKHVWDWHRIDIIDLUVRIWKH&RPSDQ\DVDWst March 2017; E LQWKHFDVHRIWKH6WDWHPHQWRI3UR¿WDQG/RVVRIWKHSUR¿WIRUWKH\HDUHQGHGRQWKDWGDWH DQG F LQWKHFDVHRIWKH&DVK)ORZ6WDWHPHQWRIWKHFDVKÀRZVIRUWKH\HDUHQGHGRQWKDWGDWH Report on Other Legal and Regulatory Requirements $VUHTXLUHGE\WKH&RPSDQLHV $XGLWRU¶V5HSRUW 2UGHU ³WKH2UGHU´ LVVXHGE\WKH&HQWUDO*RYHUQPHQWRI,QGLDLQWHUPVRI VXEVHFWLRQ RI6HFWLRQRIWKH$FWZHJLYHLQWKH³$QQH[XUH´DVWDWHPHQWRQWKHPDWWHUVVSHFL¿HGLQSDUDJUDSKVDQGRI the Order, to the extent applicable. $VUHTXLUHGE\6HFWLRQ RIWKH$FWZHUHSRUWWKDW D :H KDYH VRXJKW DQG REWDLQHG DOO WKH LQIRUPDWLRQ DQG H[SODQDWLRQV ZKLFK WR WKH EHVW RI RXU NQRZOHGJH DQG EHOLHI ZHUH necessary for the purposes of our audit. E ,QRXURSLQLRQSURSHUERRNVRIDFFRXQWDVUHTXLUHGE\ODZKDYHEHHQNHSWE\WKH&RPSDQ\VRIDUDVLWDSSHDUVIURPRXU examination of those books AUDITOR’S REPORT ON STANDALONE FINANCIAL STATMENTS 29 ANNUAL REPORT 2016 - 2017 F 7KH%DODQFH6KHHWWKH6WDWHPHQWRI3UR¿WDQG/RVVDQGWKH&DVK)ORZ6WDWHPHQWGHDOWZLWKE\WKLV5HSRUWDUHLQDJUHHPHQW with the books of accounts. G ,QRXURSLQLRQWKHDIRUHVDLG¿QDQFLDOVWDWHPHQWVFRPSO\ZLWKWKH$FFRXQWLQJ6WDQGDUGVVSHFL¿HGXQGHU6HFWLRQRIWKH $FWUHDGZLWK5XOHRIWKH&RPSDQLHV $FFRXQWV 5XOHV H 2QWKHEDVLVRIWKHZULWWHQUHSUHVHQWDWLRQVUHFHLYHGIURPWKHGLUHFWRUVDVRQst0DUFKWDNHQRQUHFRUGE\WKH%RDUG RI 'LUHFWRUV QRQH RI WKH GLUHFWRUV LV GLVTXDOL¿HG DV RQ st March 2017 from being appointed as a director in terms of 6HFWLRQ RIWKH$FW I :LWK UHVSHFW WR WKH DGHTXDF\ RI WKH LQWHUQDO ¿QDQFLDO FRQWUROV RYHU ¿QDQFLDO UHSRUWLQJ DQG WKH RSHUDWLQJ HIIHFWLYHQHVV RIVXFKFRQWUROVUHIHUWRRXUVHSDUDWHUHSRUWLQ³$QQH[XUH´ J :LWKUHVSHFWWRWKHRWKHUPDWWHUVWREHLQFOXGHGLQWKH$XGLWRU¶V5HSRUWLQDFFRUGDQFHZLWK5XOHRIWKH&RPSDQLHV $XGLW DQG$XGLWRUV 5XOHVLQRXURSLQLRQDQGWRWKHEHVWRIRXULQIRUPDWLRQDQGDFFRUGLQJWRWKHH[SODQDWLRQVJLYHQWRXV L WKH &RPSDQ\ KDV GLVFORVHG WKH LPSDFW RI SHQGLQJ OLWLJDWLRQV RQ LWV ¿QDQFLDO SRVLWLRQ LQ LWV ¿QDQFLDO VWDWHPHQWV5HIHU Note 2.39. LL WKH &RPSDQ\ GLG QRW KDYH DQ\ ORQJWHUP FRQWUDFWV LQFOXGLQJ GHULYDWLYH FRQWUDFWV IRU ZKLFK WKHUH ZHUH DQ\ PDWHULDO foreseeable losses LLL 7KHUH ZHUH QR DPRXQWV ZKLFK ZHUH UHTXLUHG WR EH WUDQVIHUUHG WR WKH ,QYHVWRU (GXFDWLRQ DQG 3URWHFWLRQ )XQG E\ WKH Company. LY 7KH &RPSDQ\ KDV SURYLGHG UHTXLVLWH GLVFORVXUHV LQ WKH ¿QDQFLDO VWDWHPHQWV DV WR KROGLQJV DV ZHOO DV GHDOLQJV LQ 6SHFL¿HG%DQN1RWHVGXULQJWKHSHULRGIURPWK1RYHPEHUWRWK'HFHPEHU%DVHGRQDXGLWSURFHGXUHV and relying on the management representation, we report that the disclosures are in accordance with books of account PDLQWDLQHGE\WKH&RPSDQ\DQGDVSURGXFHGWRXVE\WKH0DQDJHPHQW±5HIHU1RWH )RU&1*61 $662&,$7(6//3 Chartered Accountants F.R.No.004915S/S200036 -sd- C N GANGADARAN 3DUWQHU Memb.No.011205 3ODFH &KHQQDL Date: 26th May, 2017 Annexure 1 to the auditor’s report 5HIHUUHGWRLQ3DUDJUDSKRI5HSRUWRQ2WKHU/HJDODQG5HJXODWRU\5HTXLUHPHQWVRIRXU5HSRUWRIHYHQGDWH L D 7KH FRPSDQ\ KDV PDLQWDLQHG SURSHU UHFRUGV VKRZLQJ IXOO SDUWLFXODUV LQFOXGLQJ TXDQWLWDWLYH GHWDLOV DQG VLWXDWLRQ RI ¿[HG assets. E $V H[SODLQHG WR XV DOO WKH ¿[HG DVVHWV KDYH EHHQ SK\VLFDOO\ YHUL¿HG E\ WKH PDQDJHPHQW LQ D SKDVHG SHULRGLFDO PDQQHU ZKLFK LQ RXU RSLQLRQ LV UHDVRQDEOH KDYLQJ UHJDUG WR WKH VL]H RI WKH &RPSDQ\ DQG QDWXUH RI LWV DVVHWV$FFRUGLQJ WR WKH LQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVQRPDWHULDOGLVFUHSDQFLHVZHUHQRWLFHGRQVXFKSK\VLFDOYHUL¿FDWLRQ F ,QRXURSLQLRQDQGDFFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQJLYHQWRXVWKHUHDUHQRLPPRYDEOHSURSHUWLHVKHOGLQWKH QDPHRIWKH&RPSDQ\$FFRUGLQJO\VXEFODXVH F RIFODXVH L RISDUDJUDSKRI&RPSDQLHV $XGLWRUV5HSRUW 2UGHU is not applicable. LL 3K\VLFDOYHUL¿FDWLRQRILQYHQWRU\KDVEHHQFRQGXFWHGDWUHDVRQDEOHLQWHUYDOVE\WKHPDQDJHPHQWDQGQRPDWHULDOGLVFUHSDQFLHV ZHUHQRWLFHGRQVXFKYHUL¿FDWLRQ LLL 7KH FRPSDQ\ KDV QRW JUDQWHG ORDQV WR SDUWLHV FRYHUHG LQ WKH UHJLVWHU PDLQWDLQHG XQGHU VHFWLRQ RI WKH &RPSDQLHV $FW Accordingly, reporting under this clause does not arise. LY ,QRXURSLQLRQDQGDFFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVWKH&RPSDQ\KDVQRWJLYHQORDQVJXDUDQWHHRU SURYLGH VHFXULW\ WR 'LUHFWRUV RU DQ\ RWKHU SHUVRQ LQ ZKRP 'LUHFWRU LV LQWHUHVWHG $FFRUGLQJO\ FODXVH LY RI SDUDJUDSK RI &RPSDQLHV $XGLWRUV5HSRUW 2UGHULVQRWDSSOLFDEOH Y ,QRXURSLQLRQDQGDFFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVWKHFRPSDQ\KDVQRWDFFHSWHGDQ\GHSRVLWVGXULQJ the year. Accordingly, reporting under this clause does not arise. 30 AUDITOR’S REPORT ON STANDALONE FINANCIAL STATMENTS ANNUAL REPORT 2016 - 2017 YL 0DLQWHQDQFH RI FRVW UHFRUGV DV VSHFL¿HG E\ WKH &HQWUDO *RYHUQPHQW XQGHU VXEVHFWLRQ RI 6HFWLRQ RI WKH &RPSDQLHV $FWLVQRWDSSOLFDEOHWRWKHFRPSDQ\$FFRUGLQJO\FODXVHYLRISDUDJUDSKRI&RPSDQLHV $XGLWRUV5HSRUW 2UGHULV not applicable. YLL D $FFRUGLQJWRWKHUHFRUGVRIWKH&RPSDQ\DQGLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVWKHFRPSDQ\LVUHJXODULQGHSRVLWLQJ XQGLVSXWHG VWDWXWRU\ GXHV LQFOXGLQJ SURYLGHQW IXQG HPSOR\HHV¶ VWDWH LQVXUDQFH LQFRPHWD[ VDOHVWD[ ZHDOWK WD[ VHUYLFH WD[ GXW\ RI FXVWRPV GXW\ RI H[FLVH YDOXH DGGHG WD[ FHVV DQG DQ\ RWKHU VWDWXWRU\ GXHV ZLWK WKH DSSURSULDWH DXWKRULWLHV There are no undisputed statutory dues outstanding for more than six months. E $VDWst March 2017 according to the records of the Company, the following are the particulars of the disputed dues on DFFRXQWRIVDOHVWD[LQFRPHWD[FXVWRPVGXW\ZHDOWKWD[VHUYLFHWD[DQGFHVVZKLFKKDYHQRWEHHQGHSRVLWHGRQDFFRXQW of dispute: S.No Period Nature of Dues Not Paid (in `) Forum where Pending 1 Oct 2004-Sep 2007 6HUYLFHWD[ 19,30,27,340 &(67$7&KHQQDL 2 Oct 2007-Sep 2010 6HUYLFHWD[ 4,68,55,299 &(67$7&KHQQDL 3 Oct 2010-Sep 2012 6HUYLFHWD[ 3,60,84,169 &(67$7&KHQQDL 4 FY 2007-08 6HUYLFHWD[ 3,09,000 &(67$7&KHQQDL 5 April 2001-March Sales tax 48,40,18,098 Rs.2,28,60,665 before Appellate Deputy Commissioner 2006 &7 WKHVDPHKDVEHHQUHPDQGHGE\WKH$'&DQGVHQW back to assistant commissioner. Rs.46,11,57,433 -interim stay granted earlier by +RQ¶EOH+LJK&RXUWRI0DGUDVLVPDGHDEVROXWH YLGHRUGHUGDWHG 6 AY 2009-10 Income Tax 5,89,640 CIT Appeal YLLL%DVHGRQRXUDXGLWSURFHGXUHVDQGDFFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVE\WKHPDQDJHPHQWZHDUHRI WKHRSLQLRQWKDWWKHFRPSDQ\KDVQRWGHIDXOWHGLQUHSD\PHQWRIORDQVRUERUURZLQJVWRD¿QDQFLDOLQVWLWXWLRQEDQN*RYHUQPHQW or debenture holders. L[ ,QRXURSLQLRQWHUPORDQVKDYHEHHQDSSOLHGIRUWKHSXUSRVHVIRUZKLFKWKH\ZHUHUDLVHG'XULQJWKH\HDUWKHFRPSDQ\KDVQRW raised money by way of initial public offer or further public offer. [ ,QRXURSLQLRQDQGDFFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVQRIUDXGRQRUE\WKH&RPSDQ\KDVEHHQQRWLFHG RUUHSRUWHGGXULQJWKH¿QDQFLDOSHULRG [L ,Q RXU RSLQLRQ DQG DFFRUGLQJ WR WKH LQIRUPDWLRQ DQG H[SODQDWLRQV JLYHQ WR XV PDQDJHULDO UHPXQHUDWLRQ KDV EHHQ SURYLGHG LQ DFFRUGDQFHZLWKWKHUHTXLVLWHDSSURYDOVPDQGDWHGE\6HFWLRQ UHDGZLWK6FKHGXOH9RIWKH&RPSDQLHV$FW [LL ,Q RXU RSLQLRQWKH &RPSDQ\ LV QRWD 1LGKL &RPSDQ\$FFRUGLQJO\FODXVH [LL RI3DUD RI &RPSDQLHV $XGLWRUV 5HSRUW 2UGHU 2016 is not applicable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applicable. [Y OQRXURSLQLRQDQGDFFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVWKH&RPSDQ\KDVQRWHQWHUHGLQWRDQ\QRQFDVK WUDQVDFWLRQV ZLWK GLUHFWRUV RU SHUVRQV FRQQHFWHG ZLWK WKH 'LUHFWRUV$FFRUGLQJO\ FODXVH [Y RI 3DUD RI &RPSDQLHV $XGLWRUV 5HSRUW 2UGHULVQRWDSSOLFDEOH [YL,QRXURSLQLRQDQGDFFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVWKH&RPSDQ\LVQRWUHTXLUHGWREHUHJLVWHUHGXQGHU 6HFWLRQO$RIWKH5HVHUYH%DQNRI,QGLD$FW $FFRUGLQJO\FODXVH[YLRI3DUDRI&RPSDQLHV $XGLWRUV5HSRUW 2UGHU 2016 is not applicable. )RU&1*61 $662&,$7(6//3 Chartered Accountants F.R.No.004915S/S200036 -sd- 3ODFH &KHQQDL C N GANGADARAN Date: 26th May, 2017 3DUWQHU Memb.No.011205 AUDITOR’S REPORT ON STANDALONE FINANCIAL STATMENTS 31 ANNUAL REPORT 2016 - 2017 Annexure 2 to the Independent Auditor’s Report Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”) :HKDYHDXGLWHGWKHLQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJRIM/s RADAAN MEDIAWORKS INDIA LIMITED(“the Company”) DVRI0DUFKLQFRQMXQFWLRQZLWKRXUDXGLWRIWKH¿QDQFLDOVWDWHPHQWVRIWKH&RPSDQ\IRUWKH\HDUHQGHGRQWKDWGDWH Management’s Responsibility for Internal Financial Controls 7KH&RPSDQ\¶VPDQDJHPHQWLVUHVSRQVLEOHIRUHVWDEOLVKLQJDQGPDLQWDLQLQJLQWHUQDO¿QDQFLDOFRQWUROVEDVHGRQWKHLQWHUQDOFRQWURO RYHU ¿QDQFLDO UHSRUWLQJ FULWHULD HVWDEOLVKHG E\ WKH &RPSDQ\ FRQVLGHULQJ WKH HVVHQWLDO FRPSRQHQWV RI LQWHUQDO FRQWURO VWDWHG LQ WKH *XLGDQFH1RWHRQ$XGLWRI,QWHUQDO)LQDQFLDO&RQWUROV2YHU)LQDQFLDO5HSRUWLQJLVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLD 7KHVHUHVSRQVLELOLWLHVLQFOXGHWKHGHVLJQLPSOHPHQWDWLRQDQGPDLQWHQDQFHRIDGHTXDWHLQWHUQDO¿QDQFLDOFRQWUROVWKDWZHUHRSHUDWLQJ HIIHFWLYHO\IRUHQVXULQJWKHRUGHUO\DQGHI¿FLHQWFRQGXFWRILWVEXVLQHVVLQFOXGLQJDGKHUHQFHWRFRPSDQ\¶VSROLFLHVWKHVDIHJXDUGLQJRI LWVDVVHWVWKHSUHYHQWLRQDQGGHWHFWLRQRIIUDXGVDQGHUURUVWKHDFFXUDF\DQGFRPSOHWHQHVVRIWKHDFFRXQWLQJUHFRUGVDQGWKHWLPHO\ SUHSDUDWLRQRIUHOLDEOH¿QDQFLDOLQIRUPDWLRQDVUHTXLUHGXQGHUWKH&RPSDQLHV$FW Auditors’ Responsibility 2XUUHVSRQVLELOLW\LVWRH[SUHVVDQRSLQLRQRQWKH&RPSDQ\ VLQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJEDVHGRQRXUDXGLW :HFRQGXFWHGRXUDXGLWLQDFFRUGDQFHZLWKWKH*XLGDQFH1RWHRQ$XGLWRI,QWHUQDO)LQDQFLDO&RQWUROV2YHU)LQDQFLDO5HSRUWLQJ WKH ³*XLGDQFH1RWH´ DQGWKH6WDQGDUGVRQ$XGLWLQJLVVXHGE\,&$,DQGGHHPHGWREHSUHVFULEHGXQGHUVHFWLRQ RIWKH&RPSDQLHV $FWWRWKHH[WHQWDSSOLFDEOHWRDQDXGLWRILQWHUQDO¿QDQFLDOFRQWUROVERWKDSSOLFDEOHWRDQDXGLWRI,QWHUQDO)LQDQFLDO&RQWUROVDQG ERWKLVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLD7KRVH6WDQGDUGVDQGWKH*XLGDQFH1RWHUHTXLUHWKDWZHFRPSO\ZLWK HWKLFDOUHTXLUHPHQWVDQGSODQDQGSHUIRUPWKHDXGLWWRREWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUDGHTXDWHLQWHUQDO¿QDQFLDOFRQWUROV RYHU¿QDQFLDOUHSRUWLQJZDVHVWDEOLVKHGDQGPDLQWDLQHGDQGLIVXFKFRQWUROVRSHUDWHGHIIHFWLYHO\LQDOOPDWHULDOUHVSHFWV 2XUDXGLWLQYROYHVSHUIRUPLQJSURFHGXUHVWRREWDLQDXGLWHYLGHQFHDERXWWKHDGHTXDF\RIWKHLQWHUQDO¿QDQFLDOFRQWUROVV\VWHPRYHU ¿QDQFLDOUHSRUWLQJDQGWKHLURSHUDWLQJHIIHFWLYHQHVV2XUDXGLWRILQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJLQFOXGHGREWDLQLQJ DQXQGHUVWDQGLQJRILQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJDVVHVVLQJWKHULVNWKDWDPDWHULDOZHDNQHVVH[LVWVDQGWHVWLQJ DQGHYDOXDWLQJWKHGHVLJQDQGRSHUDWLQJHIIHFWLYHQHVVRILQWHUQDOFRQWUROEDVHGRQWKHDVVHVVHGULVN7KHSURFHGXUHVVHOHFWHGGHSHQG RQWKHDXGLWRU¶VMXGJHPHQWLQFOXGLQJWKHDVVHVVPHQWRIWKHULVNVRIPDWHULDOPLVVWDWHPHQWRIWKH¿QDQFLDOVWDWHPHQWVZKHWKHUGXHWR fraud or error. :H EHOLHYH WKDW WKH DXGLW HYLGHQFH ZH KDYH REWDLQHG LV VXI¿FLHQW DQG DSSURSULDWH WR SURYLGH D EDVLV IRU RXU DXGLW RSLQLRQ RQ WKH &RPSDQ\¶VLQWHUQDO¿QDQFLDOFRQWUROVV\VWHPRYHU¿QDQFLDOUHSRUWLQJ Meaning of Internal Financial Controls Over Financial Reporting $FRPSDQ\ VLQWHUQDO¿QDQFLDOFRQWURORYHU¿QDQFLDOUHSRUWLQJLVDSURFHVVGHVLJQHGWRSURYLGHUHDVRQDEOHDVVXUDQFHUHJDUGLQJWKH UHOLDELOLW\RI¿QDQFLDOUHSRUWLQJDQGWKHSUHSDUDWLRQRI¿QDQFLDOVWDWHPHQWVIRUH[WHUQDOSXUSRVHVLQDFFRUGDQFHZLWKJHQHUDOO\DFFHSWHG DFFRXQWLQJSULQFLSOHV$FRPSDQ\ VLQWHUQDO¿QDQFLDOFRQWURORYHU¿QDQFLDOUHSRUWLQJLQFOXGHVWKRVHSROLFLHVDQGSURFHGXUHVWKDW SHUWDLQWRWKHPDLQWHQDQFHRIUHFRUGVWKDWLQUHDVRQDEOHGHWDLODFFXUDWHO\DQGIDLUO\UHÀHFWWKHWUDQVDFWLRQVDQGGLVSRVLWLRQVRIWKH DVVHWVRIWKHFRPSDQ\ SURYLGHUHDVRQDEOHDVVXUDQFHWKDWWUDQVDFWLRQVDUHUHFRUGHGDVQHFHVVDU\WRSHUPLWSUHSDUDWLRQRI¿QDQFLDO statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being PDGHRQO\LQDFFRUGDQFHZLWKDXWKRUL]DWLRQVRIPDQDJHPHQWDQGGLUHFWRUVRIWKHFRPSDQ\ DQG SURYLGHUHDVRQDEOHDVVXUDQFH UHJDUGLQJSUHYHQWLRQRUWLPHO\GHWHFWLRQRIXQDXWKRUL]HGDFTXLVLWLRQXVHRUGLVSRVLWLRQRIWKHFRPSDQ\ VDVVHWVWKDWFRXOGKDYHD PDWHULDOHIIHFWRQWKH¿QDQFLDOVWDWHPHQWV Inherent Limitations of Internal Financial Controls Over Financial Reporting %HFDXVHRIWKHLQKHUHQWOLPLWDWLRQVRILQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJLQFOXGLQJWKHSRVVLELOLW\RIFROOXVLRQRULPSURSHU PDQDJHPHQWRYHUULGHRIFRQWUROVPDWHULDOPLVVWDWHPHQWVGXHWRHUURURUIUDXGPD\RFFXUDQGQRWEHGHWHFWHG$OVRSURMHFWLRQVRI DQ\HYDOXDWLRQRIWKHLQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJWRIXWXUHSHULRGVDUHVXEMHFWWRWKHULVNWKDWWKHLQWHUQDO¿QDQFLDO FRQWURORYHU¿QDQFLDOUHSRUWLQJPD\EHFRPHLQDGHTXDWHEHFDXVHRIFKDQJHVLQFRQGLWLRQVRUWKDWWKHGHJUHHRIFRPSOLDQFHZLWKWKH policies or procedures may deteriorate. Opinion ,QRXURSLQLRQWKH&RPSDQ\KDVLQDOOPDWHULDOUHVSHFWVDQDGHTXDWHLQWHUQDO¿QDQFLDOFRQWUROVV\VWHPRYHU¿QDQFLDOUHSRUWLQJDQG VXFKLQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJZHUHRSHUDWLQJHIIHFWLYHO\DVDW0DUFKEDVHGRQWKHLQWHUQDOFRQWURO RYHU ¿QDQFLDO UHSRUWLQJ FULWHULD HVWDEOLVKHG E\ WKH &RPSDQ\ FRQVLGHULQJ WKH HVVHQWLDO FRPSRQHQWV RI LQWHUQDO FRQWURO VWDWHG LQ WKH *XLGDQFH1RWHRQ$XGLWRI,QWHUQDO)LQDQFLDO&RQWUROV2YHU)LQDQFLDO5HSRUWLQJLVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLD )RU&1*61 $662&,$7(6//3 Chartered Accountants F.R.No.004915S/S200036 3ODFH &KHQQDL -sd- Date: 26th May, 2017 C N GANGADARAN, 3DUWQHU Memb.No.011205 32 AUDITOR’S REPORT ON STANDALONE FINANCIAL STATMENTS ANNUAL REPORT 2016 - 2017 STANDALONE BALANCE SHEET AS AT AS AT PARTICULARS NOTE 31/03/2017 31/03/2016 (Amt in Rs.) (Amt in Rs.) I. EQUITY AND LIABILITIES (1) Shareholder's Funds D 6KDUH&DSLWDO 2.01 10,83,23,080 10,83,23,080 E 5HVHUYHVDQG6XUSOXV 2.02 9,88,63,066 9,07,72,105 (2) Non-Current Liabilities D /RQJWHUP%RUURZLQJV 2.03 41,14,791 61,39,171 E 'HIHUUHG7D[/LDELOLWLHV 2.04 51,77,361 51,91,816 F 2WKHU/RQJWHUP/LDELOLWLHV 2.05 5,09,81,467 5,63,99,482 (3) Current Liabilities D 6KRUWWHUP%RUURZLQJV 2.06 7,99,78,009 7,04,15,005 E 7UDGH3D\DEOHV 2.07 2,08,23,682 2,31,71,831 F 2WKHU&XUUHQW/LDELOLWLHV 2.08 88,64,339 81,38,967 Total 37,71,25,795 36,85,51,457 II. ASSETS (1) Non Current Assets D )L[HG$VVHWV L 7DQJLEOH$VVHWV 2.09 2,04,83,598 2,63,03,141 LL ,QWDQJLEOH$VVHWV 2.09 - - LLL &DSLWDO:RUNLQSURJUHVV 2.09 84,05,204 - E 1RQ&XUUHQW,QYHVWPHQWV 2.10 84,41,000 84,41,000 F /RQJWHUP/RDQVDQG$GYDQFHV 2.11 9,33,33,938 8,53,16,851 G 2WKHUQRQFXUUHQW$VVHWV 2.12 9,39,45,384 9,57,48,244 (2) Current Assets D ,QYHQWRULHV 2.13 1,49,36,973 2,09,95,652 E 7UDGH5HFHLYDEOHV 2.14 7,75,59,472 8,98,05,334 F &DVKDQG&DVKHTXLYDOHQWV 2.15 11,35,622 12,10,177 G 6KRUWWHUPORDQVDQGDGYDQFHV 2.16 2,88,84,604 1,07,31,058 H 2WKHU&XUUHQW$VVHWV 2.17 3,00,00,000 3,00,00,000 Total 37,71,25,795 36,85,51,457 6LJQL¿FDQWDFFRXQWLQJSROLFLHVDQGQRWHVRQDFFRXQWV As per our report attached For M/s.CNGSN & Associates LLP On behalf of the Board of Directors Chartered Accountants )51R 6//31R 6 -sd- -sd- -sd- R.Radikaa Sarathkumar A.Krishnamoorthy C.N.Gangadaran Chairperson & Managing Director Director 3DUWQHU Membership No.: 011205 -sd- -sd- M.Kavirimani Kanhu Charan Sahu &KLHI)LQDQFLDO2I¿FHU Company Secretary 3ODFH &KHQQDL Date : 26th May 2017 STANDALONE FINANCIAL STATMENTS 33 ANNUAL REPORT 2016 - 2017 STANDALONE PROFIT AND LOSS STATEMENT YEAR ENDED YEAR ENDED PARTICULARS NOTE 31/3/2017 31/3/2016 (Amt in Rs.) (Amt in Rs.) INCOME 5HYHQXHIURP7HOHVHULDO)LOPV(YHQWV 6KRZV'LJLWDO,QFRPH 2.18 30,80,71,226 32,39,96,242 Other Income 2.19 2,93,075 13,32,349 Total Income - A 30,83,64,301 32,53,28,591 EXPENDITURE ([SHQVHVRQ7HOHVHULDOVHYHQWVHWF 2.20 23,87,54,939 26,06,63,809 &KDQJHVLQ,QYHQWRULHV :RUNLQSURJUHVV 2.21 60,58,679 (PSOR\HH%HQH¿W([SHQVHV 2.22 2,10,92,749 2,28,90,116 Other expenses 2.23 1,83,25,280 1,51,01,325 Finance Cost 2.24 1,09,40,616 1,28,30,777 'HSUHFLDWLRQDQGDPRUWL]DWLRQ([SHQVHV 2.09 51,15,532 62,56,077 Total Expenditure - B 30,02,87,795 31,58,35,026 3UR¿W%HIRUH([FHSWLRQDO,WHPV 7D[ $% 80,76,506 94,93,565 ([FHSWLRQDO,WHPV - - 3UR¿W%HIRUH([WUDRUGLQDU\,WHPV 80,76,506 94,93,565 ([WUDRUGLQDU\,WHPV - - 3UR¿W%HIRUH7D[ 80,76,506 94,93,565 7D[([SHQVHV &XUUHQW7D[ -- 'HIHUUHG7D[ 4,91,603 3UR¿W$IWHU7D[ 80,90,961 90,01,962 ([WUDRUGLQDU\LWHP QHWRIWD[H[SHQVH - - 1HW3UR¿W /RVV 80,90,961 90,01,962 (DUQLQJVSHU(TXLW\6KDUH 2.25 %DVLF 0.15 0.17 'LOXWHG 0.15 0.17 6LJQL¿FDQWDFFRXQWLQJSROLFLHVDQGQRWHVRQDFFRXQWV As per our report attached For M/s.CNGSN & Associates LLP On behalf of the Board of Directors Chartered Accountants )51R 6//31R 6 -sd- -sd- -sd- R.Radikaa Sarathkumar A.Krishnamoorthy C.N.Gangadaran Chairperson & Managing Director Director 3DUWQHU Membership No.: 011205 -sd- -sd- M.Kavirimani Kanhu Charan Sahu &KLHI)LQDQFLDO2I¿FHU Company Secretary 3ODFH &KHQQDL Date : 26th May 2017 34 STANDALONE FINANCIAL STATMENTS ANNUAL REPORT 2016 - 2017 STANDALONE CASH FLOW STATEMENT YEAR ENDED 31/03/2017 YEAR ENDED 31/03/2016 PARTICULARS (Amt in Rs.) (Amt in Rs.) A. CASH FLOW FROM OPERATING ACTIVITIES: 3UR¿WEHIRUH7D[ 80,76,506 94,93,565 Add: Finance Charges 1,09,40,616 1,28,30,777 Depreciation 51,15,532 62,56,077 /RVVRQVDOHRI¿[HGDVVHWV 15,407 1,60,71,555 10,220 1,90,97,074 2,41,48,061 2,85,90,639 /HVV 'LYLGHQG5HFHLYHG 300 1,200 2SHUDWLQJ3UR¿WEHIRUH:RUNLQJ&DSLWDO&KDQJHV 2,41,47,761 2,85,89,439 ,QFUHDVH 'HFUHDVHLQ,QYHQWRULHV :RUN,Q3URJUHVV 60,58,679 ,QFUHDVH 'HFUHDVHLQ7UDGH5HFHLYDEOHV 1,22,45,862 ,QFUHDVH 'HFUHDVHLQ9DOXHRI)&767HOHVHULDOULJKWVDQG 18,02,860 VWDIIEHQH¿WSODQVDQGRWKHUQRQFXUUHQWDVVHWV ,QFUHDVH 'HFUHDVH LQPDUNHWLQJDGYDQFH VWDIISODQ 49,21,169 obligations and long term liabilities ,QFUHDVH 'HFUHDVHLQ/RQJWHUP/RDQV $GYDQFHV ,QFUHDVH 'HFUHDVHLQ6KRUWWHUP/RDQV $GYDQFHV ,QFUHDVH 'HFUHDVHLQRWKHUFXUUHQWDVVHWV - ,QFUHDVH 'HFUHDVH LQWUDGHSD\DEOHV 1,04,55,859 ,QFUHDVH 'HFUHDVH LQ&XUUHQW/LDELOLLHV 5,23,796 6,85,075 Cash Generated from Operating Activities (A) 1,08,42,160 (71,79,282) B. CASH FLOW FROM INVESTING ACTIVITIES &DVK2XWÀRZ 3XUFKDVHRI)L[HG$VVHWV &DVK,QÀRZ Sales proceeds of Fixed Assets 10,500 13,000 'LYLGHQG5HFHLYHG 300 1,200 Net Cash from Investing Activities (B) (77,16,299) (13,84,026) C. CASH FLOW FROM FINANCING ACTIVITIES ,QFUHDVH 'HFUHDVH LQ%DQN%RUURZLQJV7HUP/RDQ ,QFUHDVH 'HFUHDVH LQ2WKHU6HFXUHG/RDQV:RUNLQJ&DSLWDO 95,63,004 2,01,27,638 Finance Charges Net Cash from Financing Activities (C) (32,00,415) 56,56,824 1HW,QFUHDVHLQ&DVK &DVK(TXLYDOHQWV $%& (74,555) (29,06,484) &DVK &DVK(TXLYDOHQWVDWWKHEHJLQQLQJRIWKH\HDU 12,10,177 41,16,661 &DVK &DVK(TXLYDOHQWVDWWKHHQGRIWKH\HDU 11,35,622 12,10,177 1HW,QFUHDVH 'HFUHDVH LQ&DVK &DVKHTXLYDOHQWV (74,555) (29,06,484) 1RWH 7KHDERYHFDVKÀRZVWDWHPHQWKDVEHHQSUHSDUHGXQGHUWKHLQGLUHFWPHWKRGDVVHWRXWLQWKH$FFRXQWLQJ6WDQGDUGLVVXHGE\WKH Institute of Chartered Accountants of India on Cash Flow Statements. As per our report attached For M/s.CNGSN & Associates LLP On behalf of the Board of Directors Chartered Accountants )51R 6//31R 6 -sd- -sd- -sd- R.Radikaa Sarathkumar A.Krishnamoorthy C.N.Gangadaran Chairperson & Managing Director Director 3DUWQHU Membership No.: 011205 -sd- -sd- M.Kavirimani Kanhu Charan Sahu &KLHI)LQDQFLDO2I¿FHU Company Secretary 3ODFH &KHQQDL Date : 26th May 2017 STANDALONE FINANCIAL STATMENTS 35 ANNUAL REPORT 2016 - 2017 SIGNIFICANT ACCOUNTING POLICIES & NOTES ON ACCOUNTS: 6LJQL¿FDQW$FFRXQWLQJ3ROLFLHV a. Basis of Accounting and Preparation of Financial Statements: 7KH)LQDQFLDO6WDWHPHQWVKDYHEHHQSUHSDUHGRQKLVWRULFDOFRVWFRQYHQWLRQDQGLQDFFRUGDQFHZLWKWKHQRUPDOO\DFFHSWHGDFFRXQWLQJ principles on a going concern basis. b. Fixed Assets: Fixed Assets are stated at cost less depreciation. c. Depreciation / Amortization: 'HSUHFLDWLRQRQ)L[HG$VVHWVLVSURYLGHGEDVHGRQXVHIXOOLIHRIWKHDVVHWVLQDFFRUGDQFHZLWKUHTXLUHPHQWRI3DUW&RI6FKHGXOH II of Companies Act, 2013. %UDQG(TXLW\*RRGZLOODQG6RIWZDUH/LEUDU\DUHGHSUHFLDWHGRYHUDSHULRGRIWKHLUHIIHFWLYHOLIHDVGHWHUPLQHGE\WKHPDQDJHPHQW QRWH[FHHGLQJWHQ\HDUVIURPWKHGDWHRIDFTXLVLWLRQ ,QWDQJLEOHDVVHWVLQWKHQDWXUHRIFRS\ULJKWVHWFDUHDPRUWL]HGRYHUDSHULRGRI\HDUV ,PSURYHPHQWVHIIHFWHGRQSUHPLVHVWDNHQRQOHDVHDUHDPRUWL]HGRYHUUHPDLQLQJSHULRGRIOHDVH &RVWRI7HOH6HULDOV7HOH)LOPVQRWKDYLQJDQ\UHSHDWWHOHFDVWYDOXHDQGRWKHUIXWXUHH[SORLWDWLRQEHQH¿WVDUHZULWWHQRIILQIXOO in the year of telecast. &RVWRI7HOH6HULDOV7HOH)LOPV(YHQWV*DPHVKRZVKDYLQJUHSHDWWHOHFDVWYDOXHDQGRWKHUIXWXUHH[SORLWDWLRQEHQH¿WVDQG LQUHVSHFWRIZKLFKWKHFRPSDQ\KROGVULJKWRIH[SORLWDWLRQ±RIWKHFRVWLVZULWWHQRIILQWKH\HDURIWHOHFDVWDQGEDODQFH LVZULWWHQRIIHTXDOO\RYHUWKHQH[WWZR\HDUVFDOFXODWHGEDVHGRQDEVRUSWLRQPHWKRG &RVWRI¿OPSURGXFWLRQ L ,QWKHFDVHRIH[SORLWDWLRQULJKWVDVVLJQHGRQDQ2XWULJKW0LQLPXP*XDUDQWHHEDVLV (QWLUHH[SHQGLWXUHLQFXUUHGIRUSURGXFWLRQRIWKH¿OPLVFKDUJHGWRWKHSUR¿W ORVVDFFRXQW LL ,Q WKH FDVH RI H[SORLWDWLRQ ULJKWV KHOG IRU RZQ UHOHDVH RU DVVLJQHG RQ GLVWULEXWLRQ EDVLV RU ZLWK D FRPELQDWLRQ RI RXWULJKW minimum guarantee and distribution basis:- ([SHQGLWXUHLQFXUUHGIRUWKHSURGXFWLRQRIWKH¿OPLVFKDUJHGWRSUR¿W ORVVDFFRXQWHTXDOO\RYHUWKHSHULRGRI¿QDQFLDO \HDUVFRPPHQFLQJIURPWKHGDWHRIUHOHDVHRIWKH¿OP V d. Inventories / Value of Unsold FCTs and Work-in-progress: 6WRFN RI XQXVHG FDVVHWWHV XQVROG IUHH FRPPHUFLDO WLPHV EDQNHG RQ SURJUDPV WHOHFDVWHG DUH YDOXHG DW FRVW :RUNLQSURJUHVV LV FDOFXODWHGEDVHGRQDEVRUSWLRQPHWKRGYDOXHGDWFRVWRUPDUNHWSULFHZKLFKHYHULVOHVV e. Revenue Recognition: Television content: ,QFRPHIURP7HOH6HULDOV7HOH)LOPV*DPHVKRZV(YHQWVLVUHFRJQL]HGRQDFFUXDOEDVLVDVSHUWKHWHUPVRIWKH$JUHHPHQWHQWHUHG into for telecasting / exploitation. ,QFDVHRI'RPHVWLFWHOHFDVW5HYHQXHLVUHFRJQL]HGRQWKHWHOHFDVWRIWKHFRQFHUQHGSURJUDP ,QFDVHRIRYHUVHDVWHOHFDVW5HYHQXHLVUHFRJQL]HGDWWKHSRLQWZKHQWKHWDSHVDUHGHOLYHUHG Film – own production: ,QWKHFDVHRIRXWULJKWPLQLPXPJXDUDQWHHDVVLJQPHQW ,QFRPHLVUHFRJQL]HGRQDFFUXDOEDVLVDVSHUWHUPVRIDJUHHPHQWHQWHUHGLQWRIRUUHOHDVHH[SORLWDWLRQ ,QWKHFDVHRIRZQH[SORLWDWLRQ'LVWULEXWLRQDVVLJQPHQW ,QFRPHLVUHFRJQL]HGRQUHFHLSWEDVLVGXULQJWKHSHULRGRIUHFHLSW Film – Distribution: 'LVWULEXWLRQPDUJLQLQFRPHLVUHFRJQL]HGRQDFFUXDOEDVLVDVSHUWHUPVRIDJUHHPHQWHQWHUHGLQWRIRUUHOHDVHH[SORLWDWLRQ 36 STANDALONE FINANCIAL STATMENTS ANNUAL REPORT 2016 - 2017 f. Foreign Currency Transactions: 7UDQVDFWLRQVSHUWDLQLQJWRLQFRPHDQGH[SHQGLWXUHDUHDFFRXQWHGDWWKHUDWHSUHYDLOLQJRQWKHGDWHRIWUDQVDFWLRQ 2XWVWDQGLQJEDODQFHVRI&XUUHQW$VVHWVDQG&XUUHQW/LDELOLWLHVUHODWLQJWR)RUHLJQ&XUUHQF\WUDQVDFWLRQVDUHUHVWDWHGLQUXSHHVE\ DGRSWLQJWKHUDWHRIH[FKDQJHSUHYDLOLQJRQWKHGDWHRI%DODQFH6KHHWDQGWKHUHVXOWDQWH[FKDQJHJDLQORVVLVUHFRJQL]HGZULWWHQRII LQWKH3UR¿W /RVV$FFRXQWDFFRUGLQJO\ g. Investments 7KHORQJWHUPLQYHVWPHQWVDUHVKRZQDWFRVWLQDFFRUGDQFHZLWK$6±$FFRXQWLQJIRU,QYHVWPHQWV h. Leave Encashment: &RPSDQ\KDVIRUPDOL]HGWKHH[LVWLQJUXOHVIRUOHDYHHQFDVKPHQWXQGHUDVFKHPHDGPLQLVWHUHGE\/LIH,QVXUDQFH&RUSRUDWLRQRI,QGLD 7KHFRQWULEXWLRQVZLOOEHPDGHDQQXDOO\EDVHGRQOHDYHFUHGLWDYDLODEOHWRWKHHPSOR\HHVDWWKHHQGRIHDFK¿QDQFLDO\HDUDQGWKH &RPSDQ\ZLOOUHSRUWLWVVWDWXVLQDFFRUGDQFHZLWK$6±(PSOR\HHV%HQH¿WVLVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLD L5HWLUHPHQW%HQH¿WV &RPSDQ\IRUPHGDWUXVWQDPHGµ5DGDDQ0HGLDZRUNV,QGLD/LPLWHG(PSOR\HHV*URXS*UDWXLW\$VVXUDQFH6FKHPH¶IRUWKHEHQH¿WRI WKHHPSOR\HHVDQGWRDGPLQLVWHUWKHIXQGVLQUHVSHFWRIJUDWXLW\RIHPSOR\HHVZLWKLQWHQWWRHQWHULQWRDDSSURYHGVFKHPHRIJURXS JUDWXLW\ZLWK/LIH,QVXUDQFH&RUSRUDWLRQRI,QGLD7KHFRQWULEXWLRQVZLOOEHPDGHWKURXJKWUXVWDQGWKH&RPSDQ\ZLOOUHSRUWLWVVWDWXVLQ DFFRUGDQFHZLWK$6±±(PSOR\HH%HQH¿WVLVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLD j. Earnings Per Share: 7KH&RPSDQ\UHSRUWV%DVLFDQG'LOXWHG(DUQLQJVSHU6KDUH (36 LQDFFRUGDQFHZLWK$FFRXQWLQJ6WDQGDUG(DUQLQJVSHU6KDUH LVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLD7KH%DVLF'LOXWHG(36KDVEHHQFRPSXWHGE\GLYLGLQJWKHLQFRPHDYDLODEOH WRHTXLW\VKDUHKROGHUVE\WKHZHLJKWHGDYHUDJHQXPEHURIHTXLW\VKDUHV LQFOXGLQJ%RQXV6KDUHVLIDQ\ GXULQJWKHDFFRXQWLQJSHULRG k. Accounting for Taxes on Income: Current tax is determined on the basis of the amount of tax payable on taxable income for the year. In accordance with the Accounting Standard-22 Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India, Deferred Tax is calculated DWFXUUHQWVWDWXWRU\LQFRPHWD[UDWHVDQGLVUHFRJQL]HGRQWLPLQJGLIIHUHQFHVEHWZHHQWD[DEOHLQFRPHDQGDFFRXQWLQJLQFRPHWKDW RULJLQDWHGLQRQHSHULRGDQGDUHFDSDEOHRIUHYHUVDOLQRQHRUPRUHVXEVHTXHQWSHULRGV l. Impairment of Assets 7KH&RPSDQ\KDVDSROLF\RIFRPSDULQJWKHUHFRYHUDEOHYDOXHZLWKWKHFDUU\LQJFRVWDQGFKDUJLQJLPSDLUPHQWZKHQUHTXLUHG m. Accounting for media receivables 7KH&RPSDQ\KDVIRUPXODWHGDV\VWHPRIHYDOXDWLQJUHFHLYDEOHVDQGDGYDQFHVO\LQJZLWKPDUNHWLQJDJHQFLHVDQGRWKHUVLJQL¿FDQW YHQGRUVDQGDVVHVVLQJWKHUHFRYHUDELOLW\7KHUHFRYHUDELOLW\WKHUHRIVKDOOEHUHYLHZHGSHULRGLFDOO\IRUVXLWDEOHSURYLVLRQFRQVLGHUHG QHFHVVDU\3URYLVLRQVRPDGHVKDOOEHZULWWHQRIIIURPWKHERRNVRIDFFRXQWHTXDOO\RYHUDSHULRGRIVL[\HDUV n. Provisioning for unsold FCTs 7KH&RPSDQ\KDVGHFLGHGWRSURYLGHDVDFRQVHUYDWLYHPHDVXUHDPLQLPXPRIRQWRWDOYDOXHRIVDOHVUHODWHGWR)UHH&RPPHUFLDO 7LPH )&7 ZLWKDYLHZWRDFFRPPRGDWHWKHULVNLQYROYHGLQWKHYDOXHRQOLTXLGDWLRQRIXQVROG)&7VKHOG o. Contingent Liabilities & Provisions $OONQRZQ/LDELOLWLHV 3URYLVLRQVRIPDWHULDOQDWXUHLIDQ\KDYHEHHQSURYLGHGIRULQWKHDFFRXQWVLQDFFRUGDQFHZLWK$6 3URYLVLRQV &RQWLQJHQW/LDELOLWLHV &RQWLQJHQW$VVHWV STANDALONE FINANCIAL STATMENTS 37 ANNUAL REPORT 2016 - 2017 1RWHVRQ6WDQGDORQH¿QDQFLDOVWDWHPHQWV As At As At PARTICULARS 31/03/2017 31/03/2016 (Amt in Rs.) (Amt in Rs.) 2.01 Share Capital Authorised Capital (TXLW\6KDUHVRI5VHDFK 11,15,00,000 11,15,00,000 Issued Capital (TXLW\6KDUHVRI5VHDFK 10,84,58,080 10,84,58,080 6XEVFULEHG 3DLGXS&DSLWDO (TXLW\6KDUHVRI5VHDFK 10,83,23,080 10,83,23,080 2IWKH$ERYH 6KDUHVRI5VHDFK VLQFHVXEGLYLGHG DOORWWHGIRUFRQVLGHUDWLRQRWKHUWKDQFDVK DVIXOO\3DLGXS HTXLW\VKDUHVRI5VHDFK VLQFHVXEGLYLGHG DOORWWHGDVIXOO\3DLGXS%RQXV6KDUHV E\ZD\RIFDSLWDOLVDWLRQRISUR¿WV 7KH&RPSDQ\KDVRQO\RQHFODVVRIVKDUHVUHIHUUHGWRDVHTXLW\VKDUHVKDYLQJDSDUYDOXHRI 5V(DFKKROGHURIHTXLW\VKDUHVLVHQWLWOHGWRRQHYRWHSHUVKDUH - The Reconciliation of the number of shares outstanding and the amount of share capital as at 31st March, 2017 and 31st March 2016 is set below: - Shares outstanding at the beginning & end Number of shares 5,41,61,540 5,41,61,540 Amount 10,83,23,080 10,83,23,080 Shares held by each shareholder holding more than 5 % shares is as follows: Mrs.R.Radikaa Sarathkumar 2,78,49,790 2,78,49,790 shares shares 2.02 Reserves & Surplus 6HFXULWLHV3UHPLXP5HVHUYHRQ(TXLW\6KDUHV$ 7,53,65,634 7,53,65,634 Surplus 2SHQLQJ%DODQFH 1,54,06,471 64,04,509 $GG 1HWSUR¿WDIWHUWD[WUDQVIHUUHGIURPVWDWHPHQWRI3UR¿W /RVV 80,90,961 90,01,962 &ORVLQJ%DODQFH% 2,34,97,432 1,54,06,471 Total ( A + B ) 9,88,63,066 9,07,72,105 2.03 Long Term Borrowings 7HUP/RDQV6HFXUHG)URP%DQNV 9HKLFOH 41,14,791 61,39,171 6HFXUHGE\K\SRWKHFDWLRQRIUHVSHFWLYHDVVHWVWRJHWKHUZLWKSHUVRQDOJXDUDQWHHRI&KDLUSHUVRQ 0DQDJLQJ'LUHFWRUWREHUHSDLGRYHUHTXDWHGPRQWKO\LQVWDOPHQWV 41,14,791 61,39,171 2.04 Deferred Tax Liability 7KH1HW'HIHUUHG7D[/LDELOLW\FRPSULVHRIWKHIROORZLQJ Depreciation on Fixed Assets 49,51,222 51,39,046 Amortisation of Teleserial cost 2,26,138 52,769 &ORVLQJ'HIHUUHG7D[/LDELOLW\ 51,77,360 51,91,815 /HVV 2SHQLQJ'HIHUUHG7D[/LDELOLW\ 51,91,815 47,00,212 1HW'HIHUUHG7D[/LDELOLW\&KDUJHG 5HYHUVHG 4,91,603 7KHGHWDLOVRIGHIHUUHGWD[OLDELOLW\UHYHUVDOIRUWKH\HDUDUHDVIROORZV Amortisation of Teleserial cost: $$VSHU%RRNVRIDFFRXQW 2,93,54,900 2,78,77,128 %$VSHU,QFRPHWD[$FW 2,99,15,965 2,99,16,006 7RWDO %$ 5,61,065 20,38,878 'HIHUUHG7D[/LDELOLW\IRUWKH\HDU&KDUJHG 5HYHUVHG 7RWDOD 1,73,369 6,93,015 Depreciation on Fixed Assets: $$VSHU%RRNVRIDFFRXQW 51,15,532 62,56,077 %$VSHU,QFRPHWD[$FW 45,07,686 56,63,513 7RWDO %$ 'HIHUUHG7D[/LDELOLW\IRUWKH\HDU&KDUJHG 5HYHUVHG 7RWDOE 1HW'HIHUUHG7D[/LDELOLW\&KDUJHG 5HYHUVHG 7RWDODE (14,455) 4,91,602 2.05 Other Long Term Liabilities D $GYDQFHVUHFHLYHGIRU)LOP/LQHSURGXFWLRQ 2,18,24,640 2,18,24,640 E *UDWXLW\ /HDYHHQFDVKPHQW2EOLJDWLRQ5HIHU1RWH 37,02,106 32,01,594 7KHDGYDQFHVUHFHLYHGIURPFXVWRPHUV IRUDVVLJQPHQWRIULJKWVIRUVDOHRI)&7 VIRUYDULRXV 2,54,54,721 3,13,73,248 WHOHVHULDOVDQG RWKHUSURJUDPV 5,09,81,467 5,63,99,482 38 STANDALONE FINANCIAL STATMENTS ANNUAL REPORT 2016 - 2017 As At As At PARTICULARS 31/03/2017 31/03/2016 (Amt in Rs.) (Amt in Rs.) 2.06 Short Term Borrowings Secured &DVK&UHGLWIURP%DQN 7,99,78,009 7,04,15,005 6HFXUHGE\ZD\RI¿UVWFKDUJHRQWKH%RRN'HEWV6WRFNLQWUDGHLQFOXGLQJPRYDEOHSURSHUWLHVRI WKHFRPSDQ\DQGDGGLWLRQDOO\VHFXUHGE\PRUWJDJHRILPPRYDEOHSURSHUWLHV 3OHGJHRIHTXLW\ shares held by Chairperson & Managing Director together with personal guarantee. 7,99,78,009 7,04,15,005 2.07 Trade Payables Sundry creditors for expenses 2,08,23,682 2,31,71,831 2,08,23,682 2,31,71,831 2.08 Other Current Liabilities 6DODULHV RWKHUHPSOR\HH V%HQH¿WV 14,55,889 15,63,199 Current Maturities of long-term debts )URP%DQNV 9HKLFOH 20,30,698 18,29,122 3URYLVLRQIRU([SHQVHV 21,13,314 13,18,153 Retention Money 50,000 50,000 :LWKKROGLQJ RWKHUWD[HV3D\DEOH 10,93,880 14,22,901 $GYDQFHVUHFHLYHGIURPGLVWULEXWRUVVXSSOLHUV 2,50,000 2,50,000 Telecast fee payable 18,70,558 17,05,592 88,64,339 81,38,967 2.10 Non Current Investments /RQJ7HUP,QYHVWPHQWDWFRVW 7UDGH8QTXRWHG ,QYHVWPHQWVLQHTXLW\LQVWUXPHQWV HTXLW\VKDUHVRI5VHDFKLQ&HOHEULW\&ULFNHW/HDJXH3ULYDWH/LPLWHG 5HIHU1RWH 75,00,000 75,00,000 HTXLW\VKDUHVRIVLQJDSRUHGROODUHDFKLQ5DGDDQ0HGLD9HQWXUHV3WH/WG 5HIHU 9,35,000 9,35,000 1RWH 2WKHUV4XRWHG ,QYHVWPHQWVLQHTXLW\LQVWUXPHQWV HTXLW\VKDUHVRI5VHDFKLQ$QGKUD%DQN 6,000 6,000 0DUNHWYDOXHDVRQLV5V 3UHYLRXV STANDALONE FINANCIAL STATMENTS 39 ANNUAL REPORT 2016 - 2017 - - 84,05,204 As at 31/03/2017 ------As at 01/04/2016 75,00,000 75,00,000 As at 8,37,20,000 1,65,00,000 - 31/03/2017 - Deletions / Withdrawals - - - - - Period 51,15,532 19,513 15,92,23,050 2,63,03,140 2,88,88,802 For the - - - - - (Amt in Rs.) As at 01/04/2016 TGWUGFHTQOVJGGZKUVKPINGCUGJQNFRTQRGTV[ 84,05,204 11,29,103 7,07,167 51,907 75,00,000 75,00,000 75,00,000 75,00,000 7,59,074 4,21,936 3,70,029 As at 1,65,00,000 1,65,00,000 - 31/03/2017 - - 15,00,000 15,00,000 - 15,00,000 - 45,420 1,69,95,530 50,35,797 20,17,628 19,513 70,33,912 1,19,42,258 99,61,618 7,86,420 18,81,11,853 15,41,27,033 7,86,420 16,32,06,649 13,76,27,033 51,15,532 19,513 14,27,23,050 2,63,03,140 2,04,83,598 Withdrawals ** Deletions / 4 ------GROSS BLOCK DEPRECIATION NET BLOCK 62,895 62,895 84,68,099 84,05,20 84,05,204 84,05,204 - - - 84,05,204 Additions - As at GVWRCVVJGPGYRTGOKUGUKPENWFKPIQHWVKNKUCVKQPQHOCVGTKCNU 18,04,30,174 01/04/2016 5 21,44,236 - 21,44,236 16,73,639 3,01,480 19,75,119 4,70,597 1,69,117 Total II 1,65,00,000 Total III years Life in Total I 16,39,30,174 Useful Total (I+II+III) GRAND TOTAL Particulars 1HſEG'SWKROGPVU Capital W.I.P.++ 1 Leasehold Rights & Improvements2 Camera Equipments -3 Computer4 1,49,80,180 Software / Content Library 13 - 33,00,050 7,41,000 8,37,20,000 3 1,42,39,180 1,16,83,264 72,95,724 6,95,311 - 33,00,050 8,37,20,000 1,23,78,573 28,60,871 32,96,916 8,37,20,000 72,95,724 35,860 18,60,607 57,87,590 5,46,400 28,96,731 4,39,179 63,33,990 4,03,319 15,08,134 9,61,734 1 Brand Equity - 75,00,000 5 Studio Bulbs6 Vehicles - 8 & 10 5,17,769 1,69,78,055 2 Goodwill3 IPR / Remake Rights 5,17,769 5,17,769 5 5 - 15,00,000 75,00,000 5,17,769 7 Studio Equipments8 Furniture & Fittings9 13 10 2,90,66,612 35,98,864 - - 2,90,66,612 2,21,53,416 35,98,864 12,39,139 24,73,677 1,66,179 2,33,92,555 69,13,196 26,39,856 56,74,057 11,25,186 9,59,007 1. 10 Airconditioner11 Generator 5 10 7,75,291 11,29,103 7,75,291 6,52,137 53,718 7,05,855 1,23,154 69,436 12 Stabilizer & UPS 10 4,24,290 4,24,290 3,61,706 7,911 3,69,617 62,584 54,673 Sl. NO I. Tangible Assets Ŏ 6JGGZRGPFKVWTGKPEWTTGFHQTQHſEGKPVGTKQTCPFUVWFKQU II. Intangible Assets 2.09. FIXED ASSETS SCHEDULE UNDER THE COMPANIES ACT, 2013 III. Capital W.I.P. 40 STANDALONE FINANCIAL STATMENTS ANNUAL REPORT 2016 - 2017 As At As At PARTICULARS 31.03.2017 31.03.2016 (Amt in Rs.) (Amt in Rs.) 2.13 Inventories 5HIHUVLJQL¿FDQWDFFRXQWLQJSROLF\G Work in progress - teleserials 1,49,36,973 2,09,95,652 1,49,36,973 2,09,95,652 2.14 Trade Receivables Debts outstanding for a period exceeding six months Unsecured Considered Good 2,60,15,079 2,63,37,439 Considered Doubtful 1,41,07,975 2,41,42,215 - Total a 4,01,23,054 5,04,79,654 /HVV 3URYLVLRQIRU'RXEWIXOGHEWV 40,73,735 1,41,07,975 :ULWWHQRIIGXULQJWKHSHULRG 5HIHU1RWHE 1,00,34,240 1,00,34,240 2,60,15,079 2,63,37,439 Other debts Unsecured Considered Good 5,15,44,393 6,34,67,894 Unsecured Considered Doubtful - - - Total b 5,15,44,393 6,34,67,894 7RWDODE 7,75,59,472 8,98,05,334 2.15 Cash and Cash Equivalents Cash on Hand 3,35,352 75,053 %DODQFHZLWK%DQNVLQ&XUUHQW$FFRXQWV 8,00,270 11,35,124 11,35,622 12,10,177 2.16 Short Term Loans and Advances Unsecured, Considered Good /RDQVDQGDGYDQFHVWRHPSOR\HHV 4,84,047 5,53,875 $GYDQFHVWR$UWLVWV 17,30,268 - $GYDQFHVWR7HFKQLFLDQV 43,756 1,43,700 $GYDQFH3URGXFWLRQV 1,40,92,454 76,77,648 5DGDDQ0HGLD9HQWXUHV3WH/WG 13,12,443 12,63,889 3UHSDLGH[SHQVHV 78,498 2,05,908 $GYDQFH86(YHQWV 1,08,75,000 - $GYDQFHRWKHUV 2,36,500 7,99,471 Other taxes credits 31,638 86,567 - Total a 2,88,84,604 1,07,31,058 Unsecured, Considered doubtful /RDQVDQGDGYDQFHVWRHPSOR\HHV 7HFKQLFLDQV 6,65,003 6,65,003 /HVV 3URYLVLRQPDGH 6,65,003 6,65,003 - Total b - - # wholly owned subsidiary 7RWDODE 2,88,84,604 1,07,31,058 2.17 Other Current Assets /LQH3URGXFWLRQ3LFWXUHV 1,04,01,906 1,04,01,906 $GYDQFHIRU)LOP$FTXLVLWLRQULJKWV 3,00,00,000 3,00,00,000 - Total a 4,04,01,906 4,04,01,906 /HVV 3URYLVLRQVPDGH7RWDOE 1,04,01,906 1,04,01,906 7RWDODE 3,00,00,000 3,00,00,000 YEAR ENDED YEAR ENDED PARTICULARS 31/03/2017 31/03/2016 (Amt in Rs.) (Amt in Rs.) 2.18 Revenue from Teleserials / Films / Events & Shows ,QFRPHIURPWHOHVHULDOV(YHQWV VKRZVHWF 28,07,62,628 30,02,22,627 Digital Income 2,73,08,598 2,15,23,615 Re run rights - 22,50,000 30,80,71,226 32,39,96,242 2.19 Other Income Gain on foreign currency reinstatement 52,730 1,13,611 'LYLGHQGLQFRPHIURP$QGKUD%DQN 300 1,200 Other Misc. Income 2,40,045 12,17,538 2,93,075 13,32,349 STANDALONE FINANCIAL STATMENTS 41 ANNUAL REPORT 2016 - 2017 YEAR ENDED YEAR ENDED PARTICULARS 31/03/2017 31/03/2016 (Amt in Rs.) (Amt in Rs.) 2.20 Expenses on television shows etc., 3D\PHQWVWR$UWLVWV 3,49,82,021 3,91,75,537 'XEELQJ&KDUJHV $UWLVWV([SHQVHVHWF 20,63,800 18,22,526 Telecast Charges 12,69,36,525 12,98,23,950 $UW 6HW3URSHULWHV5HQW 12,66,101 23,05,154 3D\PHQWVWR7HFKQLFLDQV 2,85,10,542 3,50,52,330 2WKHU3URGXFWLRQ([SHQVHV 36,01,398 43,17,695 7LWOLQJ (IIHFW&KDUJHV 4,17,500 5,02,850 %DWWD([SHQVHV 1,40,88,405 1,49,39,228 Costumes & Makeup 8,74,822 14,49,241 /LJKWLQJ *HQHUDWRU+LUH&KDUJHV 21,51,836 27,03,597 (TXLSPHQW+LUH 0DLQWHQDQFH&KDUJHV 4,66,444 9,03,889 7UDYHO6WD\ RWKHUH[SHQVHV3URGXFWLRQ 40,49,377 54,20,351 9HKLFOHV0DLQWHQDQFH +LUH&KDUJHV 37,39,713 45,32,058 6WRUDJHGHYLFHV 19,450 6,725 8QVROG)&7:ULWWHQRII 5HIHU1RWHD 26,60,400 27,08,580 3URGXFWLRQ([SHQVHV7HOHVHULDOV(YHQWV 3,26,931 21,13,049 /RFDWLRQ5HQW 77,57,322 83,69,397 &DWHULQJ([SHQVHV 54,03,417 65,56,530 Amorisation of Tele Serial rights 2,93,54,900 2,78,77,128 26,86,70,904 29,05,79,815 /HVV 7HOHVHULDO([SHQVHVGHIHUUHG 2,99,15,965 2,99,16,006 23,87,54,939 26,06,63,809 2.21 Changes in Inventories & Work-in-progress 2SHQLQJ%DODQFH :RUNLQSURJUHVVWHOHYLVLRQVKRZV 2,09,95,652 1,90,88,574 Total A 2,09,95,652 1,90,88,574 &ORVLQJ%DODQFH :RUNLQSURJUHVVWHOHYLVLRQVKRZV 1,49,36,973 2,09,95,652 7RWDO% 1,49,36,973 2,09,95,652 7RWDO$% 60,58,679 (19,07,078) (PSOR\HH%HQH¿W([SHQVHV Salaries 1,91,91,397 2,10,16,922 &RQWULEXWLRQWR3) (6,DQGRWKHUIXQGV 8,23,737 8,71,279 Staff Welfare 10,77,615 10,01,915 2,10,92,749 2,28,90,116 2.23 Other expenses 6DODU\WRZKROHWLPHGLUHFWRU 5HIHU1RWH 42,00,000 38,50,000 Insurance Charges 4,86,779 3,58,075 /RVVRQH[FKDQJHYDULDWLRQ 8,59,823 2,05,345 /RVVRQVDOHRI0RWRUF\FOH 15,407 10,220 2WKHU$GPLQLVWUDWLYH&KDUJHV 12,22,264 14,46,801 Sitting Fees 4,70,000 4,40,000 3RRMD([S 3,76,776 3,32,979 3RVWDJH7HOHSKRQHFKDUJHV 10,00,151 9,06,869 3ULQWLQJ 6WDWLRQHU\ 1,95,931 2,88,200 3URIHVVLRQDO &RQVXOWDQF\&KDUJHV 26,90,215 12,16,457 $XGLWRU VIHHV 5HIHU1RWH 5,00,000 5,00,000 /LVWLQJIHHV 3,76,127 2,17,952 Rent, Rates & Taxes 26,00,000 18,00,000 Repairs & Maintenance 18,14,124 18,92,102 7UDYHOLQJ &RQYH\DQFH 12,76,730 11,41,699 9HKLFOH0DLQWHQDQFH 1,55,800 3,37,855 $GYHUWLVHPHQW([SHQVHV%XVLQHVV3URPRWLRQ 85,153 1,56,771 1,83,25,280 1,51,01,325 2.24 Finance Cost Interest & Finance Charges 1,06,47,150 1,22,72,462 %DQN&KDUJHV 2,93,466 5,58,315 1,09,40,616 1,28,30,777 42 STANDALONE FINANCIAL STATMENTS ANNUAL REPORT 2016 - 2017 2.25 Earnings per Equity Share: Sl. No Particulars 2016-17 (Amt. in Rs) 2015-16 (Amt. in Rs) 1 3UR¿W /RVV EHIRUH([WUDRUGLQDU\LWHPV 80,90,961 90,01,962 2 3UR¿W /RVV DIWHU([WUDRUGLQDU\LWHPV 80,90,961 90,01,962 :HLJKWHG$YHUDJH1RRIHTXLW\VKDUHV LQFOXGLQJERQXV IRU%DVLF'LOXWHG(DUQLQJV 3 5,41,61,540 5,41,61,540 per share 4 %DVLF 'LOXWHG(36EHIRUHH[WUDRUGLQDU\LWHPV 0.15 0.17 5 %DVLF 'LOXWHG(36DIWHUH[WUDRUGLQDU\LWHPV 0.15 0.17 2.26 Subsidiary Company in Singapore &RPSDQ\ KDG LQFRUSRUDWHG D ZKROO\ RZQHG VXEVLGLDU\ FRPSDQ\ ± 5DGDDQ 0HGLD 9HQWXUHV 3WH /LPLWHG LQ 6LQJDSRUH WR HQJDJH LQ PHGLD HQWHUWDLQPHQW DFWLYLWLHV 'XULQJ WKH \HDU FRPSDQ\ KDG QRW HQWHUHG LQWR DQ\ EXVLQHVV WUDQVDFWLRQ $VRQUHLPEXUVHPHQWGXHSD\DEOHE\VXEVLGLDU\ZDV5V3XUVXDQWWRSURYLVLRQVRIVHFWLRQ RI WKH&RPSDQLHV$FWDVWDWHPHQWFRQWDLQLQJVDOLHQWIHDWXUHVRIWKH¿QDQFLDOVWDWHPHQWVRIWKHVXEVLGLDU\FRPSDQ\DVUHTXLUHG LQWKHSUHVFULEHG)RUP$2&LVSURYLGHGKHUHEHORZ D Name of the subsidiary 5DGDDQ0HGLD9HQWXUHV3WH/WG E 5HSRUWLQJ3HULRG 01-04-2016 to 31-03-2017 F 5HSRUWLQJFXUUHQF\DQGH[FKDQJHUDWHDVRQWKHODVWGDWHRIWKHUHOHYDQW¿QDQFLDO\HDU Sing $ / Rs.46.3062 G 3HUFHQWDJHRIVKDUHKROGLQJ 100 % LQ6LQJ LQ5V H Share Capital 20,000 9,26,124 I 5HVHUYHV 6XUSOXV J Total Assets 1,000 46,306 K 7RWDO/LDELOLWLHV 41,980 19,43,934 L ,QYHVWPHQWV -- M 7XUQRYHU -- N 3UR¿WEHIRUHWD[DWLRQ O 3URYLVLRQIRUWD[DWLRQ -- P 3UR¿WDIWHUWD[DWLRQ Q 3URSRVHG'LYLGHQG -- 2.27 Investments: 'XULQJWKH\HDU±&RPSDQ\KDGHQWHUHGLQWRDVKDUHVXEVFULSWLRQDJUHHPHQWZLWK&HOHEULW\&ULFNHW/HDJXH3ULYDWH /LPLWHG µ&&/¶ DQGKDGLQYHVWHG5V/DFVFRQVLVWVRIHTXLW\VKDUHVRI5VHDFKDQGWKHVDPHLVVKRZQDW FRVWXQGHUWKHµ1RQ&XUUHQW,QYHVWPHQWV¶ 2.28 7KH &RPSDQ\ KDG HQWHUHG LQWR OHDVHKROG DJUHHPHQWV ZLWK 0UV55DGLNDD 6DUDWKNXPDU 0DQDJLQJ 'LUHFWRU IRU DFTXLULQJ OHDVHKROGULJKWVIRUDSHULRGRI\HDUVLQUHVSHFWRISURSHUWLHVDW1R 3DXO$SSDVDP\6WUHHW&KHQQDL 7KHFRQVLGHUDWLRQIRUOHDVHGHSRVLWZDV5V/DNKVRXWRIZKLFKDVXPRI5V/DNKVZDVGLVFKDUJHGE\ZD\RIDOORWPHQW RI HTXLW\ VKDUHV RI 5V HDFK DV IXOO\ SDLG DQG RXW RI WKH UHPDLQLQJ GHSRVLW WKH VXP RI 5V ODFV ZDV discharged in the form of cash. The registration formalities in respect of lease agreements are yet to be completed. $VSHU$FFRXQWLQJ6WDQGDUG /HDVHVLVVXHGE\,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLDWKH2SHUDWLQJ/HDVHHQWHUHG LQWRE\WKH&RPSDQ\LVJLYHQEHORZ a. The total of future minimum lease payments under operating leases for each of the following periods: L 1RWODWHUWKDQRQH\HDU±5V LL /DWHUWKDQRQH\HDUDQGQRWODWHUWKDQ¿YH\HDUV±5V LLL /DWHUWKDQ¿YH\HDUV±1,/ E 7KHWRWDORIIXWXUHPLQLPXPVXEOHDVHSD\PHQWVH[SHFWHGWREHUHFHLYHGXQGHUQRQFDQFHOODEOHVXEOHDVHVDWWKHEDODQFH VKHHWGDWH±1,/ F /HDVHSD\PHQWVUHFRJQL]HGLQWKHVWDWHPHQWRISUR¿WDQGORVVIRUWKHSHULRGZLWKVHSDUDWHDPRXQWVIRUPLQLPXPOHDVH SD\PHQWVDQGFRQWLQJHQWUHQWV±5V G 6XEOHDVHSD\PHQWVUHFHLYHG RUUHFHLYDEOH UHFRJQL]HGLQWKHVWDWHPHQWRISUR¿WDQGORVVIRUWKHSHULRG±1,/ H $JHQHUDOGHVFULSWLRQRIWKHOHVVHH¶VVLJQL¿FDQWOHDVLQJDUUDQJHPHQWVLQFOXGLQJEXWQRWOLPLWHGWRWKHIROORZLQJ L 7KHEDVLVRQZKLFKFRQWLQJHQWUHQWSD\PHQWVDUHGHWHUPLQHG±1,/ 43 ANNUAL REPORT 2016 - 2017 LL 7KHH[LVWHQFHDQGWHUPVRIUHQHZDORUSXUFKDVHRSWLRQVDQGHVFDODWLRQFODXVHV ±/HDVHIRUSHULRGRI\HDUVUHQHZDEOHRQWKHEDVLVRIFRPSOHWLRQRIPRQWKV LLL 5HVWULFWLRQV LPSRVHG E\ OHDVH DUUDQJHPHQWV VXFK DV WKRVH FRQFHUQLQJ GLYLGHQGV DGGLWLRQDO GHEW DQG IXUWKHU leasing- D ,PSURYHPHQWWREHPDGHZLWKWKHZULWWHQFRQVHQWRIWKH/HVVRU E ,QFDVHRIYDFDWLRQE\OHVVHHRQLWVRZQEHIRUHWKHH[SLU\RIWKHOHDVHSHULRGWKHFRVWRILPSURYHPHQWPDGHWR leasehold property to be borne by the lessee. F ,QWKHFDVHRIYDFDWLRQDWLQVWDQFHRIWKHOHVVRUEHIRUHWKHH[SLU\RIWKHOHDVHSHULRGWKHZULWWHQGRZQYDOXHDV RQGDWHRIYDFDWLRQWREHERUQHE\WKHOHVVRU 2.29 During the year, Company has entered into lease agreement for a period of 5 years with respect to the property situated DW1R -D\DPPDO5RDG7H\QDPSHW&KHQQDLDQGKDVSDLGDVHFXULW\GHSRVLWRI5VODFV7KHRSHUDWLRQDODFWLYLW\KDV EHHQVKLIWHGHIIHFWLYHVW$SULO $VSHU$FFRXQWLQJ6WDQGDUG /HDVHVLVVXHGE\,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLDWKH2SHUDWLQJ/HDVHHQWHUHG LQWRE\WKH&RPSDQ\LVJLYHQEHORZ a. The total of future minimum lease payments under operating leases for each of the following periods: L 1RWODWHUWKDQRQH\HDU±5V LL /DWHUWKDQRQH\HDUDQGQRWODWHUWKDQ¿YH\HDUV±5V LLL /DWHUWKDQ¿YH\HDUV±1,/ E 7KHWRWDORIIXWXUHPLQLPXPVXEOHDVHSD\PHQWVH[SHFWHGWREHUHFHLYHGXQGHUQRQFDQFHOODEOHVXEOHDVHVDWWKHEDODQFH VKHHWGDWH±1,/ F /HDVHSD\PHQWVUHFRJQL]HGLQWKHVWDWHPHQWRISUR¿WDQGORVVIRUWKHSHULRGZLWKVHSDUDWHDPRXQWVIRUPLQLPXPOHDVH SD\PHQWVDQGFRQWLQJHQWUHQWV±5V G 6XEOHDVHSD\PHQWVUHFHLYHG RUUHFHLYDEOH UHFRJQL]HGLQWKHVWDWHPHQWRISUR¿WDQGORVVIRUWKHSHULRG±1,/ H $JHQHUDOGHVFULSWLRQRIWKHOHVVHH¶VVLJQL¿FDQWOHDVLQJDUUDQJHPHQWVLQFOXGLQJEXWQRWOLPLWHGWRWKHIROORZLQJ L 7KHEDVLVRQZKLFKFRQWLQJHQWUHQWSD\PHQWVDUHGHWHUPLQHG±1,/ LL 7KHH[LVWHQFHDQGWHUPVRIUHQHZDORUSXUFKDVHRSWLRQVDQGHVFDODWLRQFODXVHV±/HDVHIRUSHULRGRI\HDUV LLL 5HVWULFWLRQVLPSRVHGE\OHDVHDUUDQJHPHQWVVXFKDVWKRVHFRQFHUQLQJGLYLGHQGVDGGLWLRQDOGHEWDQGIXUWKHU leasing- D ,PSURYHPHQWWREHPDGHZLWKWKHZULWWHQFRQVHQWRIWKH/HVVRU E ,QFDVHRIYDFDWLRQE\OHVVHHRQLWVRZQEHIRUHWKHH[SLU\RIWKHOHDVHSHULRGWKHFRVWRILPSURYHPHQWPDGHWR leasehold property to be borne by the lessee. 2.30 7KHFRPSDQ\IRUPHGDWUXVWQDPHGµ5DGDDQ0HGLDZRUNV,QGLD/LPLWHG(PSOR\HHV*URXS*UDWXLW\$VVXUDQFH6FKHPH¶ZLWK LQWHQWWRHQWHULQWRDQDSSURYHGVFKHPHRIJURXSJUDWXLW\ZLWK/LIH,QVXUDQFH&RUSRUDWLRQRI,QGLDDQGWRDGPLQLVWHUIRUWKH EHQH¿W RI WKH HPSOR\HHV 7KH JUDWXLW\ UHSRUW SURYLGHG E\ /,& RI ,QGLD DV DW st March 2017 under AS-15 in respect of JUDWXLW\RIHPSOR\HHVRIWKH&RPSDQ\LVJLYHQEHORZ 1. Assumption: Discount Rate - 8% 6DODU\(VFDODWLRQ 7DEOHVKRZLQJFKDQJHVLQSUHVHQWYDOXHRIREOLJDWLRQ Particulars ( Amt in Rs ) 3UHVHQW9DOXHRIREOLJDWLRQVDVDWEHJLQQLQJRI\HDU 23,98,634 Interest Cost 1,91,891 &XUUHQW6HUYLFH&RVW 3,78,616 %HQH¿WV3DLG %HQH¿WVWKDWIHOOGXHLQFDVHRIUHVLJQDWLRQVGHDWK UHWLUHPHQWV (QWHUDVDQHJDWLYHYDOXH $FWXDULDO *DLQ /RVV %DODQFLQJLWHP 3UHVHQW9DOXHRIWKH'H¿QHG%HQH¿W2EOLJDWLRQVDW0DUFK 26,03,948 7DEOHVKRZLQJFKDQJHVLQWKHIDLUYDOXHRISODQDVVHWV )DLUYDOXHRISODQDVVHWVDWEHJLQQLQJRI\HDU 28,50,445 ([SHFWHG5HWXUQRQ3ODQ$VVHWV 2,25,558 Contributions -- %HQH¿WV3DLG $FWXDULDOJDLQ ORVV RQSODQDVVHWV 1,/ )DLU9DOXHRI3ODQ$VVHWVDWWKHHQGRI\HDU 30,08,573 44 STANDALONE FINANCIAL STATMENTS ANNUAL REPORT 2016 - 2017 7DEOHVKRZLQJIDLUYDOXHRISODQDVVHWV )DLUYDOXHRISODQDVVHWVDWEHJLQQLQJRI\HDU 28,50,445 Actual return on plan assets 2,25,558 Contributions -- %HQH¿WV3DLG )DLU9DOXHRISODQDVVHWVDWWKHHQGRI\HDU 30,08,573 Fund status 4,04,625 ([FHVVRIDFWXDORYHUHVWLPDWHGUHWXUQRQSODQDVVHWV 1,/ $FWXDULDO*DLQ/RVVUHFRJQL]HG $FWXDULDO JDLQ ORVVRQREOLJDWLRQV $FWXDULDO JDLQ ORVVIRUWKH\HDU±SODQDVVHWV -- $FWXDULDO JDLQ ORVVRQREOLJDWLRQV $FWXDULDO JDLQ ORVVUHFRJQL]HGLQWKH\HDU 7KHDPRXQWVWREHUHFRJQL]HGLQWKHEDODQFHVKHHWDQGVWDWHPHQWRISUR¿WDQGORVV 3UHVHQWYDOXHRIREOLJDWLRQVDVDWWKHHQGRI\HDU 26,03,948 )DLUYDOXHRISODQDVVHWVDVDWHQGRIWKH\HDU 30,08,573 Funded status 4,04,625 1HWDVVHW OLDELOLW\ UHFRJQL]HGLQEDODQFHVKHHW 4,04,625 ([SHQVHVUHFRJQL]HGLQVWDWHPHQWRISUR¿WDQGORVV &XUUHQW6HUYLFHFRVW 3,78,616 Interest Cost 1,91,891 ([SHFWHGUHWXUQRQSODQDVVHWV 1HW$FWXDULDO JDLQ ORVVUHFRJQL]HGLQWKH\HDU ([SHQVHVUHFRJQL]HGLQVWDWHPHQWRISUR¿WDQGORVV 47,186 2.31 Leave Encashment: &RPSDQ\KDVWDNHQDQLQVXUDQFHSROLF\ZLWK/,&RI,QGLDIRU*URXS/HDYH(QFDVKPHQW$VVXUDQFH6FKHPHIRUWKHEHQH¿W RIHPSOR\HHV7KHUHSRUWSURYLGHGE\/,&RI,QGLDDVDWst0DUFKXQGHU$6LQUHVSHFWRI*URXS/HDYH(QFDVKPHQW RIHPSOR\HHVRIWKH&RPSDQ\LVJLYHQEHORZ 1. Assumption: Discount Rate - 8% 6DODU\(VFDODWLRQ 7DEOHVKRZLQJFKDQJHVLQSUHVHQWYDOXHRIREOLJDWLRQ Particulars ( Amt in Rs ) 3UHVHQW9DOXHRIREOLJDWLRQVDVDWEHJLQQLQJRI\HDU 8,02,960 Interest Cost 64,237 &XUUHQW6HUYLFH&RVW 3,23,820 %HQH¿WV3DLG %HQH¿WVWKDWIHOOGXHLQFDVHRIUHVLJQDWLRQVGHDWK UHWLUHPHQWV (QWHUDVDQHJDWLYHYDOXH $FWXDULDO *DLQ /RVV %DODQFLQJLWHP 3UHVHQW9DOXHRIWKH'H¿QHG%HQH¿W2EOLJDWLRQVDW0DUFK 10,98,158 7DEOHVKRZLQJFKDQJHVLQWKHIDLUYDOXHRISODQDVVHWV )DLUYDOXHRISODQDVVHWVDWEHJLQQLQJRI\HDU 12,03,096 ([SHFWHG5HWXUQRQ3ODQ$VVHWV 1,03,395 Contributions 60,133 %HQH¿WV3DLG $FWXDULDOJDLQ ORVV RQSODQDVVHWV 1,/ )DLU9DOXHRI3ODQ$VVHWVDWWKHHQGRI\HDU 13,41,443 7DEOHVKRZLQJIDLUYDOXHRISODQDVVHWV )DLUYDOXHRISODQDVVHWVDWEHJLQQLQJRI\HDU 12,03,096 Actual return on plan assets 1,03,395 Contributions 60,133 %HQH¿WV3DLG )DLU9DOXHRISODQDVVHWVDWWKHHQGRI\HDU 13,41,443 Fund status 2,43,285 ([FHVVRIDFWXDORYHUHVWLPDWHGUHWXUQRQSODQDVVHWV 1,/ $FWXDULDO *DLQ /RVVUHFRJQL]HG $FWXDULDO JDLQ ORVVRQREOLJDWLRQV $FWXDULDO JDLQ ORVVIRUWKH\HDU±SODQDVVHWV 1,/ 7RWDO$FWXDULDO JDLQ ORVV $FWXDULDO JDLQ ORVVUHFRJQL]HGLQWKH\HDU STANDALONE FINANCIAL STATMENTS 45 ANNUAL REPORT 2016 - 2017 7KHDPRXQWVWREHUHFRJQL]HGLQWKHEDODQFHVKHHWDQGVWDWHPHQWRISUR¿WDQGORVV 3UHVHQWYDOXHRIREOLJDWLRQVDVDWWKHHQGRI\HDU 10,98,158 )DLUYDOXHRISODQDVVHWVDVDWHQGRIWKH\HDU 13,41,443 Funded status 2,43,285 1HWDVVHW OLDELOLW\ UHFRJQL]HGLQEDODQFHVKHHW ([SHQVHVUHFRJQL]HGLQVWDWHPHQWRISUR¿WDQGORVV &XUUHQW6HUYLFHFRVW 3,23,820 Interest Cost 64,237 ([SHFWHGUHWXUQRQSODQDVVHWV 1HW$FWXDULDO JDLQ ORVVUHFRJQL]HGLQWKH\HDU ([SHQVHVUHFRJQL]HGLQVWDWHPHQWRISUR¿WDQGORVV 2,16,985 2.32 7KHFRVWRIHSLVRGHVRIWHOHVHULDO V WHOH¿OP V IHDWXUH¿OP V LQSURJUHVVRUFRPSOHWHGDQGSHQGLQJWHOHFDVWUHOHDVHDV RQ GDWH RI %DODQFH 6KHHW KDV EHHQ FRQVLGHUHG DV :RUNLQSURJUHVV DQG FDOFXODWHG EDVHG RQ DEVRUSWLRQ PHWKRG DQG WKH VDPHLVYDOXHGDWFRVWRUPDUNHWSULFHZKLFKHYHULVOHVV 2.33 D $VSHUDFFRXQWLQJSROLF\GWKHYDOXHRIXQVROG)&7DFFXPXODWHGDQGKHOGIRUPRUHWKDQPRQWKVKDVEHHQFODVVL¿HG under 2.12 Non Current Assets. As per accounting policy 1 n, Company has written off a sum of Rs.26,60,400 for the )<± 3UHYLRXV E 2WKHUUHODWHGSDUWLHVNH\PDQDJHPHQWSHUVRQQHOZLWKZKRPWUDQVDFWLRQVKDYHWDNHQSODFHGXULQJWKH\HDU 1 Mr.R.Sarathkumar .03'LUHFWRU±2SHUDWLRQ 42,00,000 'LUHFWRU¶V5HPXQHUDWLRQ 89,19,866 Daughter of Mrs.Radikaa, 2 Ms.Rayane 9,00,000 6DODU\ RWKHUEHQH¿WV 68,091 Chairperson & Managing Director Sister of Mrs.Radikaa, 3 Ms.Nirosha 13,66,681 Artist Remuneration 4,05,000 Chairperson & Managing Director 4 0U0.DYLULPDQL .03±&)2 18,48,000 6DODU\ RWKHUEHQH¿WV 1,33,519 5 0U.DQKX&KDUDQ6DKX .03±&RPSDQ\6HFUHWDU\ 10,08,000 6DODU\ RWKHUEHQH¿WV 77,986 46 STANDALONE FINANCIAL STATMENTS ANNUAL REPORT 2016 - 2017 F 7UDQVDFWLRQVZLWK:KROO\RZQHGVXEVLGLDU\FRPSDQ\±5DGDDQ0HGLD9HQWXUHV3WH/WG6LQJDSRUH Transaction during the 2016-17 Outstanding as at 31/03/2017 Particulars In Rupees In Singapore Dollar In Rupees In Singapore Dollar ,QYHVWPHQWLQ6KDUH&DSLWDO Nil Nil 9,35,000 20,000 ,QWHUHVW)UHH/RDQJUDQWHG Nil Nil Nil Nil Interest Free Reimbursable 48,554 1,000 13,12,443 27,391.35 ([SHQVHV 2.37 Segment Reporting 7KH FRPSDQ\ RSHUDWHV LQ WKH DUHD RI SURGXFLQJ FRQWHQW IRU WHOHVHULDOV¿OPV GLJLWDO FRQWHQW HYHQWV JDPH VKRZV HWF DSDUWIURPSURGXFLQJ¿OPVXQGHUWDNLQJGLVWULEXWLRQDFWLYLWLHVWKHDWULFDOSOD\VDQGVHWWLQJXSRIWUDLQLQJFRXUVHFRPSULVHRI DFWLQJGDQFHPDUWLDODUWV\RJDHWF0DQDJHPHQWEHOLHYHVWKDWLWLVQRWSUDFWLFDOWRSURYLGHVHJPHQWGLVFORVXUHVUHODWLQJWR WKRVHFRVWVDQGH[SHQVHVDVRSHUDWLRQDODFWLYLWLHVDUHLQWHUWZLQHGDQGWKHUHIRUHLWKDVEHHQGHFLGHGE\WKHPDQDJHPHQW WRUHSRUWLWVIXQFWLRQDORSHUDWLRQVXQGHURQHVHJPHQWµ0HGLD (QWHUWDLQPHQW¶ZLWKHIIHFWIURP$SULODQGFRQWLQXHWR report accordingly. 2.38 There are no dues to small and micro enterprises during the year ended March 2017 & March 2016. 2.39 &RQWLQJHQW/LDELOLWLHV 31/03/2017 31/03/2016 Sl. No. Particulars (Amt. in Rs.) (Amt. in Rs.) 1. Claims against the company not acknowledged as debts Service Tax 2FWREHUWR6HSWHPEHU LQFOXVLYHRISHQDOW\RI5VFURUH 19,30,27,340 19,30,27,340 2FWREHUWR6HSWHPEHU H[FOXGLQJSHQDOW\ 4,68,55,299 4,68,55,299 2FWREHUWR6HSWHPEHU LQFOXGLQJRISHQDOW\RI5VODFV 3,60,84,169 3,60,84,169 ± H[FOXGLQJSHQDOW\ 3,09,000 - Sales Tax $SULOWR0DUFK LQFOXGLQJRISHQDOW\RI5V 48,40,18,098 48,40,18,098 Income Tax $< )< 5,89,640 5,89,640 A. Service Tax: 6HUYLFH WD[ GHPDQG ZDV FRQWHVWHG EHIRUH &(67$7 &KHQQDL DQG D VWD\ ZDV JUDQWHG ZLWKRXW DQ\ SUHGHSRVLW FRQGLWLRQ IRUWKHSHULRG2FWREHUWR6HSWHPEHU,QUHVSHFWRIVHUYLFHWD[GHPDQGRIVLPLODUQDWXUHIRUWKHSHULRG2FWREHU WR6HSWHPEHUDQGIRUDOOWKHDERYHLVVXHVDSSHDOKDVEHHQ¿OHGEHIRUH&(67$7 B. Sales Tax: +RQ¶EOH+LJK&RXUWRI0DGUDVJUDQWHGLQWHULPVWD\RUGHUDJDLQVWVDOHVWD[GHPDQGIRUWKHSHULRG±WR±DQG SDUWLDOO\IRUWKH\HDU±DVSUD\HGE\WKH&RPSDQ\ +RQ¶EOH+LJK&RXUWRI0DGUDVKDVPDGHLQWHULPVWD\JUDQWHGHDUOLHUDVDEVROXWHVWD\ YLGHRUGHUGDWHG &RPSDQ\ KDV ¿OHG DQ DSSHDO EHIRUH $SSHOODWH 'HSXW\ &RPPLVVLRQHU &7 ,,, &KHQQDL IRU WKH SDUW RI WKH GLVSXWHG GHPDQG IRU WKH \HDU ± DPRXQWLQJ WR 5V QRW FRYHUHG XQGHU WKH VWD\ RUGHU RI +RQ¶EOH +LJK &RXUW DQG DV D FRQGLWLRQ KDYH GHSRVLWHG D VXP RI 5VDQG DOVR IXUQLVKHG SHUVRQDO ERQG E\ &KDLUSHUVRQ 0DQDJLQJ 'LUHFWRU IRU 5V IRU VWD\ RI FROOHFWLRQ RI WD[ 7KH $SSHOODWH 'HSXWH &RPPLVVLRQHU &7 ,,, KDV UHPDQGHG WKH GLVSXWHG demand to Asst.Commissioner of Sales Tax. The hearing was completed and order is awaited from Asst. Commisioner of Sales Tax. ,QWKHDERYHUHIHUUHGFDVHV0DQDJHPHQW¿UPO\EHOLHYHVWKDWLWVVWDQGLVOLNHO\WREHXSKHOGLQWKHDSSHOODWHSURFHVV C. Income Tax: 7KHFODLPRIGHSUHFLDWLRQRQ1RQFRPSHWH5LJKWVRI5VODFVDQG%UDQGHTXLW\RI5VODFVKDGEHHQVXFFHVVIXOO\XSKHOG by Honorable ITAT in the asst.years 2001-02, 2004-05, 2005-06, 2006-07, 2008-09. The claim of depreciation was allowed IRU WKH $< DQG E\ &,7$SSHDOV ± 9, 7KH DSSHDO LV SHQGLQJ EHIRUH &,7$SSHDOV IRU WKH 2010-11 and 2011-12. With respect to A.Y.2002-03 and 2003-04, department had not appealed against the decision of CIT, Appeals. Department has appealed against Honorable ITAT order for the A.Y.2001-02, 2005-06 and the matter is pending EHIRUHWKH+RQ¶EOH+LJK&RXUWRI0DGUDV,QWKLVFRQQHFWLRQWKHUHDUHQRWD[GHPDQGVDWSUHVHQW $< $< +RQ¶EOH,7$7KDVXSKHOGWKH&,7$SSHDOVRUGHUDOORZLQJEDGGHEWVFODLPRI5VODFVIRU the A.Y.2004-05 and also upheld the CIT, Appeals order disallowing notional interest addition of Rs.24 lacs and allowing GHSUHFLDWLRQFODLPRQ1RQFRPSHWH5LJKWVDQG%UDQGHTXLW\IRUWKH$< STANDALONE FINANCIAL STATMENTS 47 ANNUAL REPORT 2016 - 2017 $< 'LVDOORZDQFHRIWHOHVHULDOSURGXFWLRQH[SHQVHVRI5VLVSHQGLQJEHIRUH&,7$SSHDOV±7KH disputed tax demand is Rs.5,89,640/- ,QWKHDERYHUHIHUUHGFDVHV0DQDJHPHQW¿UPO\EHOLHYHVWKDWLWVVWDQGLVOLNHO\WREHXSKHOGLQWKHDSSHOODWHSURFHVV 2.40 /LFHQVHGDQG,QVWDOOHGFDSDFLW\ 1RW$SSOLFDEOH 2.41 'LVFORVXUHRQVSHFL¿HGEDQNQRWHV 'XULQJWKH\HDUWKH&RPSDQ\KDGVSHFL¿HGEDQNQRWHVRURWKHUGHQRPLQDWLRQQRWHDVGH¿QHGLQWKH0&$QRWL¿FDWLRQ*65 ( GDWHG0DUFKRQWKHGHWDLOVRI6SHFL¿HG%DQN1RWHV 6%1 KHOGDQGWUDQVDFWHGGXULQJWKHSHULRGIURP 1RYHPEHUWR'HFHPEHUWKHGHQRPLQDWLRQZLVH6%1VDQGRWKHUQRWHVDVSHUWKHQRWL¿FDWLRQLVJLYHQEHORZ 3DUWLFXODUV 6%1V 2WKHUGHQRPLQDWLRQQRWHV 7RWDO Closing cash in hand as on 1RYHPEHU 3HUPLWWHGUHFHLSWV 3HUPLWWHGSD\PHQWV $PRXQWGHSRVLWHGLQ%DQNV Closing cash in hand as on 30 December 2016 - 1,45,070 1,45,070 )RUWKHSXUSRVHVRIWKLVFODXVHWKHWHUPµ6SHFL¿HG%DQN1RWHV¶VKDOOKDYHWKHVDPHPHDQLQJSURYLGHGLQWKHQRWL¿FDWLRQ RIWKH*RYHUQPHQWRI,QGLDLQWKH0LQLVWU\RI)LQDQFH'HSDUWPHQWRI(FRQRPLF$IIDLUVQXPEHU62 ( GDWHGWKH 1RYHPEHU 2.42 Tax Expense: R 1RSURYLVLRQLVUHTXLUHGIRU0LQLPXP$OWHUQDWH7D[ 0$7 RQDFFRXQWRIUHVXOWDQW%RRN/RVVRIWKHFRPSDQ\ R 1R SURYLVLRQ LV UHTXLUHG IRU LQFRPH WD[ RQ DFFRXQW RI UHVXOWDQW ORVV GXULQJ WKH \HDU DSDUW IURP FDUULHG IRUZDUG ORVVHV IURPWKHHDUOLHU\HDUVDQGKHQFHQRWSURYLGHGIRU 31/03/2017 31/03/2016 2.43 (DUQLQJVLQ)RUHLJQ&XUUHQF\ 86 86 (TXLYDOHQWWR (TXLYDOHQWWR Rs.3,01,53,098 Rs.3,89,20,327 ([SHQGLWXUHLQ)RUHLJQ&XUUHQF\ $XVWUDOLDQ (TXLYDOHQWWR5V 6LQJ'ROODU 1,/ (TXLYDOHQWWR Rs. 48,554 2.44 )LJXUHV RI 3UHYLRXV \HDU KDYH EHHQ UHJURXSHG DQG UHFODVVL¿HG ZKHUHYHU QHFHVVDU\ WR FRQIRUP WR WKRVH RI WKH FXUUHQW year. 2.45 )LJXUHVKDYHEHHQURXQGHGRIIWRWKHQHDUHVWUXSHH As per our report attached For M/s.CNGSN & Associates LLP On behalf of the Board of Directors Chartered Accountants )51R 6//31R 6 -sd- -sd- -sd- R.Radikaa Sarathkumar A.Krishnamoorthy C.N.Gangadaran Chairperson & Managing Director Director 3DUWQHU Membership No.: 011205 -sd- -sd- M.Kavirimani Kanhu Charan Sahu &KLHI)LQDQFLDO2I¿FHU Company Secretary 3ODFH &KHQQDL Date : 26th May 2017 48 STANDALONE FINANCIAL STATMENTS ANNUAL REPORT 2016 - 2017 INDEPENDENT AUDITOR'S REPORT ON CONSOLIDATED FINANCIAL STATEMENTS To the Members of RADAAN MEDIAWORKS INDIA LIMITED Report on the Consolidated Financial Statements :HKDYHDXGLWHGWKHDFFRPSDQ\LQJ¿QDQFLDOVWDWHPHQWVRI0V5$'$$10(',$:25.6,1',$/,0,7(' WKH+ROGLQJ&RPSDQ\ LWV VXEVLGLDULHVDQGLWVDVVRFLDWH FROOHFWLYHO\UHIHUUHGWRDV³WKH&RPSDQ\´RU³WKH*URXS´ FRPSULVLQJRIWKHFRQVROLGDWHGEDODQFHVKHHW as at 31st0DUFKWKHFRQVROLGDWHGVWDWHPHQWRISUR¿WDQGORVVWKHFRQVROLGDWHGFDVKÀRZVWDWHPHQWIRUWKH\HDUWKHQHQGHGDQG DVXPPDU\RIWKHVLJQL¿FDQWDFFRXQWLQJSROLFLHVDQGRWKHUH[SODQDWRU\LQIRUPDWLRQ ³WKHFRQVROLGDWHG¿QDQFLDOVWDWHPHQWV´ Management’s Responsibility for the Financial Statements 7KH+ROGLQJ&RPSDQ\¶V%RDUGRI'LUHFWRUVLVUHVSRQVLEOHIRUWKHSUHSDUDWLRQDQGSUHVHQWDWLRQRIWKHFRQVROLGDWHG¿QDQFLDOVWDWHPHQWV LQWHUPVRIWKHUHTXLUHPHQWVRIWKH&RPSDQLHV$FW ³WKH$FW´ WKDWJLYHDWUXHDQGIDLUYLHZRIWKHFRQVROLGDWHG¿QDQFLDOSRVLWLRQ FRQVROLGDWHG¿QDQFLDOSHUIRUPDQFHDQGFRQVROLGDWHGFDVKÀRZVRIWKH*URXSLQDFFRUGDQFHZLWKWKHDFFRXQWLQJSULQFLSOHVJHQHUDOO\ DFFHSWHGLQ,QGLDLQFOXGLQJWKH$FFRXQWLQJ6WDQGDUGVVSHFL¿HGXQGHU6HFWLRQRIWKH$FWUHDGZLWK5XOHRIWKH&RPSDQLHV $FFRXQWV 5XOHV7KHUHVSHFWLYH%RDUGRI'LUHFWRUVRIWKH&RPSDQLHVLQWKH*URXSDUHUHVSRQVLEOHIRUPDLQWHQDQFHRIDGHTXDWH DFFRXQWLQJUHFRUGVLQDFFRUGDQFHZLWKWKHSURYLVLRQVRIWKH$FWIRUVDIHJXDUGLQJRIWKHDVVHWVRIWKH*URXSDQGIRUSUHYHQWLQJDQG detecting frauds and other irregularities; the selection and application of appropriate accounting policies; making judgements and HVWLPDWHVWKDWDUHUHDVRQDEOHDQGSUXGHQW DQGWKHGHVLJQLPSOHPHQWDWLRQDQGPDLQWHQDQFHRIDGHTXDWHLQWHUQDO¿QDQFLDOFRQWUROV WKDWZHUHRSHUDWLQJHIIHFWLYHO\IRUHQVXULQJWKHDFFXUDF\DQGFRPSOHWHQHVVRIWKHDFFRXQWLQJUHFRUGVUHOHYDQWWRWKHSUHSDUDWLRQDQG SUHVHQWDWLRQRIWKH¿QDQFLDOVWDWHPHQWVWKDWJLYHDWUXHDQGIDLUYLHZDQGDUHIUHHIURPPDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXG RUHUURUZKLFKKDYHEHHQXVHGIRUWKHSXUSRVHRISUHSDUDWLRQRIWKHFRQVROLGDWHG¿QDQFLDOVWDWHPHQWVE\WKH'LUHFWRUVRIWKH+ROGLQJ Company, as aforesaid. 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I :LWK UHVSHFW WR WKH DGHTXDF\ RI WKH LQWHUQDO ¿QDQFLDO FRQWUROV RYHU ¿QDQFLDO UHSRUWLQJ RI WKH *URXS DQG WKH RSHUDWLQJ HIIHFWLYHQHVVRIVXFKFRQWUROVUHIHUWRRXUVHSDUDWHUHSRUWLQ³$QQH[XUH´ J :LWKUHVSHFWWRWKHRWKHUPDWWHUVWREHLQFOXGHGLQWKH$XGLWRU¶V5HSRUWLQDFFRUGDQFHZLWK5XOHRIWKH&RPSDQLHV $XGLW DQG$XGLWRUV 5XOHVLQRXURSLQLRQDQGWRWKHEHVWRIRXULQIRUPDWLRQDQGDFFRUGLQJWRWKHH[SODQDWLRQVJLYHQWRXV L 7KHFRQVROLGDWHG¿QDQFLDOVWDWHPHQWVGLVFORVHWKHLPSDFWRISHQGLQJOLWLJDWLRQVRQWKHFRQVROLGDWHG¿QDQFLDOSRVLWLRQRIWKH *URXS5HIHU1RWH DQGWRWKHFRQVROLGDWHG¿QDQFLDOVWDWHPHQWV LL 7KH *URXS GLG QRW KDYH DQ\ ORQJWHUP FRQWUDFWV LQFOXGLQJ GHULYDWLYH FRQWUDFWV IRU ZKLFK WKHUH ZHUH DQ\ PDWHULDO foreseeable losses; and LLL 7KHUH ZHUH QR DPRXQWV ZKLFK ZHUH UHTXLUHG WR EH WUDQVIHUUHG WR WKH ,QYHVWRU (GXFDWLRQ DQG 3URWHFWLRQ )XQG E\ WKH Holding Company and its subsidiary companies incorporated in India. LY 7KH &RPSDQ\ KDV SURYLGHG UHTXLVLWH GLVFORVXUHV LQ WKH ¿QDQFLDO VWDWHPHQWV DV WR KROGLQJV DV ZHOO DV GHDOLQJV LQ 6SHFL¿HG%DQN1RWHVGXULQJWKHSHULRGIURPWK1RYHPEHUWRth'HFHPEHU%DVHGRQDXGLWSURFHGXUHV and relying on the management representation, we report that the disclosures are in accordance with books of account PDLQWDLQHGE\WKH&RPSDQ\DQGDVSURGXFHGWRXVE\WKH0DQDJHPHQW±5HIHU1RWH )RU&1*61 $662&,$7(6//3 Chartered Accountants F.R.No.004915S/ S200036 -sd- C N GANGADARAN 3ODFH &KHQQDL 3DUWQHU Date: 26th May, 2017 Memb.No.011205 50 AUDITOR’S REPORT ON CONSOLIDATED FINANCIAL STATEMENTS ANNUAL REPORT 2016 - 2017 Annexure 1 to the Independent Auditor’s Report Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”) ,QFRQMXQFWLRQZLWKRXUDXGLWRIWKHFRQVROLGDWHG¿QDQFLDOVWDWHPHQWVRIWKH&RPSDQ\DVRIDQGIRUWKH\HDUHQGHGst March 2017, ZHKDYHDXGLWHGWKHLQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJRIM/s RADAAN MEDIAWORKS INDIA LIMITED 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Opinion In our opinion, based on the test checks conducted by us, the Holding Company, its subsidiary companies, and its jointly controlled HQWHUSULVHZKLFKDUHFRPSDQLHVLQFRUSRUDWHGLQ,QGLDKDYHLQDOOPDWHULDOUHVSHFWVUHDVRQDEO\DGHTXDWHLQWHUQDO¿QDQFLDOFRQWUROV V\VWHPRYHU¿QDQFLDOUHSRUWLQJDQGVXFKLQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJZHUHSULPDIDFLHRSHUDWLQJHIIHFWLYHO\DVDW 31st 0DUFKEDVHGRQWKHLQWHUQDOFRQWURORYHU¿QDQFLDOUHSRUWLQJFULWHULDHVWDEOLVKHGE\WKH&RPSDQ\FRQVLGHULQJWKHHVVHQWLDO FRPSRQHQWVRILQWHUQDOFRQWUROVWDWHGLQWKH*XLGDQFH1RWHRQ$XGLWRI,QWHUQDO)LQDQFLDO&RQWUROV2YHU)LQDQFLDO5HSRUWLQJLVVXHGE\ the Institute of Chartered Accountants of India. )RU&1*61 $662&,$7(6//3 Chartered Accountants F.R.No.004915S/ S200036 -sd- C N GANGADARAN 3ODFH &KHQQDL 3DUWQHU Date: 26th May, 2017 Memb.No.011205 AUDITOR’S REPORT ON CONSOLIDATED FINANCIAL STATEMENTS 51 ANNUAL REPORT 2016 - 2017 CONSOLIDATED BALANCE SHEET As At As At PARTICULARS NOTE 31/03/2017 31/03/2016 (Amt in Rs.) (Amt in Rs.) I. EQUITY AND LIABILITIES (1) Shareholder's Funds D 6KDUH&DSLWDO 4.01 10,83,23,080 10,83,23,080 E 5HVHUYHVDQG6XUSOXV 4.02 9,59,86,355 8,80,16,401 (2) Non-Current Liabilities D /RQJWHUP%RUURZLQJV 4.03 41,14,791 61,39,171 E 'HIHUUHG7D[/LDELOLWLHV 4.04 51,77,361 51,91,816 F 2WKHU/RQJWHUP/LDELOLWLHV 4.05 5,09,81,467 5,63,99,482 (3) Current Liabilities D 6KRUWWHUP%RUURZLQJV 4.06 7,99,78,009 7,04,15,005 E 7UDGH3D\DEOHV 4.07 2,14,99,257 2,37,28,647 F 2WKHU&XUUHQW/LDELOLWLHV 4.08 88,64,339 81,38,967 Total 37,49,24,659 36,63,52,569 II. ASSETS (1) Non Current Assets D )L[HG$VVHWV L 7DQJLEOH$VVHWV 4.09 2,04,83,598 2,63,03,141 LL ,QWDQJLEOH$VVHWV 4.09 - - LLL &DSLWDO:RUNLQSURJUHVV 4.09 84,05,204 - E 1RQ&XUUHQW,QYHVWPHQWV 4.10 75,06,000 75,06,000 F /RQJWHUP/RDQVDQG$GYDQFHV 4.11 9,33,33,939 8,53,16,851 G 2WKHUQRQFXUUHQW$VVHWV 4.12 9,39,45,384 9,57,48,244 (2) Current Assets D ,QYHQWRULHV 4.13 1,49,36,973 2,09,95,652 E 7UDGH5HFHLYDEOHV 4.14 7,75,59,472 8,98,05,334 F &DVKDQG&DVKHTXLYDOHQWV 4.15 11,81,928 12,10,177 G 6KRUWWHUPORDQVDQGDGYDQFHV 4.16 2,75,72,161 94,67,170 H 2WKHU&XUUHQW$VVHWV 4.17 3,00,00,000 3,00,00,000 Total 37,49,24,659 36,63,52,569 6LJQL¿FDQWDFFRXQWLQJSROLFLHVDQGQRWHVRQDFFRXQWV As per our report attached For M/s.CNGSN & Associates LLP On behalf of the Board of Directors Chartered Accountants )51R 6//31R 6 -sd- -sd- -sd- R.Radikaa Sarathkumar A.Krishnamoorthy C.N.Gangadaran Chairperson & Managing Director Director 3DUWQHU Membership No.: 011205 -sd- -sd- M.Kavirimani Kanhu Charan Sahu &KLHI)LQDQFLDO2I¿FHU Company Secretary 3ODFH &KHQQDL Date : 26th May 2017 52 CONSOLIDATED FINANCIAL STATEMENTS ANNUAL REPORT 2016 - 2017 CONSOLIDATED PROFIT AND LOSS STATEMENT YEAR ENDED YEAR ENDED PARTICULARS NOTE 31/03/2017 31/03/2016 INCOME 5HYHQXHIURP7HOHVHULDO)LOPV(YHQWV 6KRZV'LJLWDO,QFRPH 4.18 30,80,71,226 32,39,96,242 Other Income 4.19 2,93,075 13,32,349 Total Income - A 30,83,64,301 32,53,28,591 EXPENDITURE ([SHQVHVRQ7HOHVHULDOVHYHQWVHWF 4.20 23,87,54,939 26,06,63,809 &KDQJHVLQ,QYHQWRULHV :RUNLQSURJUHVV 4.21 60,58,679 (PSOR\HH%HQH¿W([SHQVHV 4.22 2,10,92,749 2,28,90,116 Other expenses 4.23 1,84,77,595 1,52,94,627 Finance Cost 4.24 1,09,40,616 1,28,46,995 'HSUHFLDWLRQDQGDPRUWL]DWLRQ([SHQVHV 4.09 51,15,532 62,56,077 Total Expenditure - B 30,04,40,110 31,60,44,546 3UR¿W%HIRUH([FHSWLRQDO,WHPV 7D[ $% 79,24,191 92,84,045 ([FHSWLRQDO,WHPV - - 3UR¿W%HIRUH7D[ 79,24,191 92,84,045 7D[([SHQVHV &XUUHQW7D[ - - 'HIHUUHG7D[ 4,91,603 3UR¿W$IWHU7D[ 79,38,646 87,92,442 ([WUDRUGLQDU\LWHP QHWRIWD[H[SHQVH - - 1HW3UR¿W /RVV 79,38,646 87,92,442 (DUQLQJVSHU(TXLW\6KDUH 4.25 %DVLF 0.15 0.16 'LOXWHG 0.15 0.16 6LJQL¿FDQWDFFRXQWLQJSROLFLHVDQGQRWHVRQDFFRXQWV As per our report attached For M/s.CNGSN & Associates LLP On behalf of the Board of Directors Chartered Accountants )51R 6//31R 6 -sd- -sd- -sd- R.Radikaa Sarathkumar A.Krishnamoorthy C.N.Gangadaran Chairperson & Managing Director Director 3DUWQHU Membership No.: 011205 -sd- -sd- M.Kavirimani Kanhu Charan Sahu &KLHI)LQDQFLDO2I¿FHU Company Secretary 3ODFH &KHQQDL Date : 26th May 2017 CONSOLIDATED FINANCIAL STATEMENTS 53 ANNUAL REPORT 2016 - 2017 CONSOLIDATED CASH FLOW STATEMENT YEAR ENDED YEAR ENDED PARTICULARS 31/03/2017 31/03/2016 (Amt in Rs.) (Amt in Rs.) A. CASH FLOW FROM OPERATING ACTIVITIES: 3UR¿WEHIRUH7D[ 79,24,191 92,84,045 Add: Finance Charges 1,09,40,616 1,28,46,995 Depreciation 51,15,532 62,56,077 /RVVRQVDOHRI¿[HGDVVHWV 15,407 10,220 )RUHLJQ&XUUHQF\7UDQVODWLRQ5HVHUYH 17,384 1,60,88,939 1,90,39,181 2,40,13,130 2,83,23,226 /HVV 'LYLGHQG5HFHLYHG 300 1,200 &DSLWDOUHVHUYHRQLQYHVWPHQWLQ6XEVLGLDU\ Goodwill on consolidation - 2SHUDWLQJ3UR¿WEHIRUH:RUNLQJ&DSLWDO&KDQJHV 2,40,26,754 2,83,64,840 ,QFUHDVH 'HFUHDVHLQ,QYHQWRULHV :RUN,Q3URJUHVV 60,58,679 ,QFUHDVH 'HFUHDVHLQ7UDGH5HFHLYDEOHV 1,22,45,862 ,QFUHDVH 'HFUHDVHLQ9DOXHRI)&767HOHVHULDOULJKWVDQGVWDII 18,02,860 EHQH¿WSODQV ,QFUHDVH 'HFUHDVH LQPDUNHWLQJDGYDQFH VWDIISODQ 49,21,169 obligations in long term liabilities ,QFUHDVH 'HFUHDVHLQ/RDQV $GYDQFHV ,QFUHDVH 'HFUHDVHLQ6KRUWWHUP/RDQV $GYDQFHV ,QFUHDVH 'HFUHDVHLQ2WKHUFXUUHQWDVVHWV - ,QFUHDVH 'HFUHDVH LQWUDGHSD\DEOHV 1,06,81,021 ,QFUHDVH 'HFUHDVH LQ&XUUHQW/LDELOLLHV 5,23,796 6,85,075 Cash Generated from Operating Activities (A) 1,08,88,466 (71,78,719 B. CASH FLOW FROM INVESTING ACTIVITIES &DVK2XWÀRZ 3XUFKDVHRI)L[HG$VVHWV &DVK,QÀRZ Sales proceeds of Fixed Assets 10,500 13,000 'LYLGHQG5HFHLYHG 300 1,200 Net Cash from Investing Activities (B (77,16,299) (13,84,024) C. CASH FLOW FROM FINANCING ACTIVITIES ,QFUHDVH 'HFUHDVH LQ%DQN%RUURZLQJV ,QFUHDVH 'HFUHDVH LQ2WKHU6HFXUHG/RDQV 95,63,004 2,01,27,638 Finance Charges Net Cash from Financing Activities (C) (32,00,415) 56,40,606 1HW,QFUHDVHLQ&DVK &DVK(TXLYDOHQWV $%& (28,249) (29,22,137) &DVK &DVK(TXLYDOHQWVDWWKHEHJLQQLQJRIWKH\HDU 12,10,177 41,32,314 &DVK &DVK(TXLYDOHQWVDWWKHHQGRIWKH\HDU 11,81,928 12,10,177 1HW,QFUHDVH 'HFUHDVH LQ&DVK &DVKHTXLYDOHQWV (28,249) (29,22,137) 1RWH 7KHDERYHFDVKÀRZVWDWHPHQWKDVEHHQSUHSDUHGXQGHUWKHLQGLUHFWPHWKRGDVVHWRXWLQWKH$FFRXQWLQJ6WDQGDUGLVVXHGE\WKH Institute of Chartered Accountants of India on Cash Flow Statements. As per our report attached For M/s.CNGSN & Associates LLP On behalf of the Board of Directors Chartered Accountants )51R 6//31R 6 -sd- -sd- -sd- R.Radikaa Sarathkumar A.Krishnamoorthy C.N.Gangadaran Chairperson & Managing Director Director 3DUWQHU Membership No.: 011205 -sd- -sd- M.Kavirimani Kanhu Charan Sahu &KLHI)LQDQFLDO2I¿FHU Company Secretary 3ODFH &KHQQDL Date : 26th May 2017 54 CONSOLIDATED FINANCIAL STATEMENTS ANNUAL REPORT 2016 - 2017 NOTES ON CONSOLIDATED FINANCIAL STATEMENTS 3. SIGNIFICANT ACCOUNTING POLICIES I BASIS OF PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS A Basis of Preparation: 7KH)LQDQFLDOVWDWHPHQWVDUHSUHSDUHGXQGHUKLVWRULFDOFRVWFRQYHQWLRQRQDFFUXDOEDVLVLQDFFRUGDQFHZLWKWKH*HQHUDOO\$FFHSWHG $FFRXQWLQJ3ULQFLSOHV *$$3 DQGFRPSO\ZLWK$FFRXQWLQJ6WDQGDUGVQRWL¿HGXQGHUVHFWLRQRIWKH&RPSDQLHV$FWUHDGZLWK 5XOHRI&RPSDQLHV $FFRXQWV 5XOHV B Use of Estimates: 7KHSUHSDUDWLRQRI¿QDQFLDOVWDWHPHQWVLQDFFRUGDQFHZLWKWKHJHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHVUHTXLUHVPDQDJHPHQWWRPDNH MXGJPHQWVHVWLPDWHVDQGDVVXPSWLRQVWKDWDIIHFWWKHUHSRUWHGDPRXQWVRIUHYHQXHVH[SHQVHVDVVHWVDQGOLDELOLWLHVDQGWKHGLVFORVXUH of contingent liabilities, at the end of the reporting period. 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III TRANSLATION TO INDIAN RUPEES: 7KHIXQFWLRQDOFXUUHQF\RIWKH3DUHQW&RPSDQ\LV,QGLDQ5XSHH7KHIXQFWLRQDOFXUUHQF\RIWKHVXEVLGLDU\LV6LQJDSRUH'ROODU6XEVLGLDU\ DFFRXQWVDUHFRQYHUWHGIURP6LQJDSRUH'ROODUWR,QGLDQ5XSHHVLQWKHIROORZLQJPDQQHU $OOLQFRPHDQGH[SHQVHLWHPVDUHWUDQVODWHG DWWKHDYHUDJHUDWHRIH[FKDQJHDSSOLFDEOHIRUWKH\HDU$OOPRQHWDU\DQGQRQPRQHWDU\DVVHWVDQGOLDELOLWLHVDUHWUDQVODWHGDWWKH FORVLQJUDWHDVRQ%DODQFH6KHHWGDWH7KHHTXLW\VKDUHFDSLWDOLVVWDWHGDWWKHH[FKDQJHUDWHDWWKHGDWHRILQYHVWPHQW7KHH[FKDQJH GLIIHUHQFHDULVLQJRXWRIWKH\HDUHQGWUDQVODWLRQLVGHELWHGRUFUHGLWHGWR)RUHLJQ&XUUHQF\7UDQVODWLRQ5HVHUYH$FFRXQWDQGLVEHLQJ FODVVL¿HGXQGHU5HVHUYHVDQG6XUSOXV$FFRXQW IV OTHER SIGNIFICANT ACCOUNTING POLICIES: 7KHVHDUHVHWRXWLQWKHQRWHQRXQGHUQRWHVRIWKHVWDQGDORQH¿QDQFLDOVWDWHPHQWRI5DGDDQ0HGLDZRUNV,QGLD/LPLWHG V GENERAL INFORMATION 5DGDDQ0HGLD9HQWXUHV3WH/WG µVXEVLGLDU\¶ KDVEHHQLQFRUSRUDWHGDVZKROO\RZQHGVXEVLGLDU\RI5DGDDQ0HGLDZRUNV,QGLD/LPLWHG 3DUHQW +ROGLQJ &RPSDQ\ RQ 'XULQJ WKH \HDU VXEVLGLDU\ KDV QRW HQWHUHG LQWR DQ\ EXVLQHVV WUDQVDFWLRQ RWKHU WKDQ RSHQLQJRIEDQNDFFRXQWZLWK,QGLDQ2YHUVHDV%DQNLQRUGHUWRIDFLOLWDWHEXVLQHVVRSHUDWLRQLQWKH)<+RZHYHUWKHERRNRI accounts of the subsidiary was consolidated for the year ended 31.03.2017. CONSOLIDATED FINANCIAL STATEMENTS 55 ANNUAL REPORT 2016 - 2017 1RWHVRQ&RQVROLGDWHG¿QDQFLDOVWDWHPHQW As At As At PARTICULARS 31/03/2017 31/03/2016 (Amt in Rs.) (Amt in Rs.) 4.01 Share Capital Authorised Capital (TXLW\6KDUHVRI5VHDFK 11,15,00,000 11,15,00,000 Issued Capital (TXLW\6KDUHVRI5VHDFK 10,84,58,080 10,84,58,080 6XEVFULEHG 3DLGXS&DSLWDl (TXLW\6KDUHVRI5VHDFK 10,83,23,080 10,83,23,080 2IWKH$ERYH 6KDUHVRI5VHDFK VLQFHVXEGLYLGHG DOORWWHGIRUFRQVLGHUDWLRQRWKHU WKDQFDVKDVIXOO\3DLGXS HTXLW\VKDUHVRI5VHDFK VLQFHVXEGLYLGHG DOORWWHGDVIXOO\3DLGXS %RQXV6KDUHVE\ZD\RIFDSLWDOLVDWLRQRISUR¿WV 7KH&RPSDQ\KDVRQO\RQHFODVVRIVKDUHVUHIHUUHGWRDVHTXLW\VKDUHVKDYLQJDSDU YDOXHRI5V(DFKKROGHURIHTXLW\VKDUHVLVHQWLWOHGWRRQHYRWHSHUVKDUH - The Reconciliation of the number of shares outstanding and the amount of share capital as at March 31, 2017 and March 31,2016 is set below: Shares outstanding at the beginning & end Number of shares 5,41,61,540 5,41,61,540 Amount 10,83,23,080 10,83,23,080 Shares held by each shareholder holding more than 5 % shares is as follows: 2,78,49,790 2,78,49,790 Mrs.R.Radikaa Sarathkumar shares shares 4.02 Reserves & Surplus 6HFXULWLHV3UHPLXP5HVHUYHRQ(TXLW\6KDUHV$ 7,53,65,634 7,53,65,634 Surplus 2SHQLQJ%DODQFH 1,27,89,564 39,65,414 $GG 1HWSUR¿WDIWHUWD[WUDQVIHUUHGIURPVWDWHPHQWRI3UR¿W /RVV 79,38,646 87,92,442 $GG &DSLWDOUHVHUYHRQDFFRXQWRILQYHVWPHQWLQVXELVLGLDU\ 13,924 31,708 &ORVLQJ%DODQFH% 2,07,42,134 1,27,89,564 )RUHLJQ&XUUHQF\7UDQVODWLRQ5HVHUYH 2SHQLQJ%DODQFH Add: Translation difference during the period 17,384 &ORVLQJ%DODQFH& 7RWDO $%& 9,59,86,355 8,80,16,401 4.03 Long Term Borrowings 7HUP/RDQV6HFXUHG)URP%DQNV 9HKLFOH 41,14,791 61,39,171 6HFXUHGE\K\SRWKHFDWLRQRIUHVSHFWLYHDVVHWVWRJHWKHUZLWKSHUVRQDOJXDUDQWHHRI&KDLUSHUVRQ 0DQDJLQJ'LUHFWRUWREHUHSDLGRYHUHTXDWHGPRQWKO\LQVWDOPHQWV 41,14,791 61,39,171 4.04 Deferred Tax Liability 7KH1HW'HIHUUHG7D[/LDELOLW\FRPSULVHRIWKHIROORZLQJ Depreciation on Fixed Assets 49,51,222 51,39,046 Amortisation of Teleserial cost 2,26,138 52,769 &ORVLQJ'HIHUUHG7D[/LDELOLW\ 51,77,361 51,91,815 /HVV 2SHQLQJ'HIHUUHG7D[/LDELOLW\ 51,91,816 47,00,212 1HW'HIHUUHG7D[/LDELOLW\5HYHUVHG 4,91,603 7KHGHWDLOVRIGHIHUUHGWD[OLDELOLW\UHYHUVDOIRUWKH\HDUDUHDVIROORZV Amortisation of Teleserial cost $$VSHU%RRNVRIDFFRXQW 2,93,54,900 2,78,77,128 %$VSHU,QFRPHWD[$FW 2,99,15,965 2,99,16,006 7RWDO %$ 5,61,065 20,38,878 'HIHUUHG7D[/LDELOLW\IRUWKH\HDU&KDUJHG 5HYHUVHG 7RWDOD 1,73,369 6,93,015 Depreciation on Fixed Assets: $$VSHU%RRNVRIDFFRXQW 51,15,532 62,56,077 %$VSHU,QFRPHWD[$FW 45,07,686 56,63,513 7RWDO %$ 'HIHUUHG7D[/LDELOLW\IRUWKH\HDU&KDUJHG 5HYHUVHG 7RWDOE 1HW'HIHUUHG7D[/LDELOLW\5HYHUVHG (14,455) 4,91,603 4.05 Other Long Term Liabilities D $GYDQFHVUHFHLYHGIRU)LOP/LQHSURGXFWLRQ 2,18,24,640 2,18,24,640 E *UDWXLW\ /HDYHHQFDVKPHQW2EOLJDWLRQ5HIHU1RWH 37,02,106 32,01,594 7KHDGYDQFHVUHFHLYHGIURPFXVWRPHUV IRUDVVLJQPHQWRIULJKWVIRUVDOHRI)&7 VIRUYDULRXV 2,54,54,721 3,13,73,248 WHOHVHULDOVDQG RWKHUSURJUDPV 5,09,81,467 5,63,99,482 56 CONSOLIDATED FINANCIAL STATEMENTS ANNUAL REPORT 2016 - 2017 As At As At PARTICULARS 31/03/2017 31/03/2016 (Amt in Rs.) (Amt in Rs.) 4.06 Short Term Borrowings Secured &DVK&UHGLWIURP%DQN 7,99,78,009 7,04,15,005 6HFXUHGE\ZD\RI¿UVWFKDUJHRQWKH%RRN'HEWV6WRFNLQWUDGHLQFOXGLQJPRYDEOHSURSHUWLHVRI WKHFRPSDQ\DQGDGGLWLRQDOO\VHFXUHGE\PRUWJDJHRILPPRYDEOHSURSHUWLHV 3OHGJHRIHTXLW\ shares held by Chairperson & Managing Director together with personal guarantee. 7,99,78,009 7,04,15,005 4.07 Trade Payables Sundry creditors for expenses 2,14,99,257 2,37,28,647 2,14,99,257 2,37,28,647 4.08 Other Current Liabilities 6DODULHV RWKHUHPSOR\HH V%HQH¿WV 14,55,889 15,63,199 Current Maturities of long-term debts )URP%DQNV 9HKLFOH 20,30,698 18,29,122 3URYLVLRQIRU([SHQVHV 21,13,314 13,18,153 Retention Money 50,000 50,000 :LWKKROGLQJ RWKHUWD[HV3D\DEOH 10,93,880 14,22,901 $GYDQFHVUHFHLYHGIURPGLVWULEXWRUVVXSSOLHUV 2,50,000 2,50,000 Telecast fee payable 18,70,558 17,05,592 88,64,339 81,38,967 4.10 Non Current Investments /RQJ7HUP,QYHVWPHQWDWFRVW 7UDGH8QTXRWHG ,QYHVWPHQWVLQHTXLW\LQVWUXPHQWV HTXLW\VKDUHVRI5VHDFKLQ&HOHEULW\&ULFNHW/HDJXH3ULYDWH/LPLWHG 5HIHU1RWH 75,00,000 75,00,000 2WKHUV4XRWHG ,QYHVWPHQWVLQHTXLW\LQVWUXPHQWV HTXLW\VKDUHVRI5VHDFKLQ$QGKUD%DQN 6,000 6,000 0DUNHWYDOXHDVRQLV 3UHYLRXV CONSOLIDATED FINANCIAL STATEMENTS 57 ANNUAL REPORT 2016 - 2017 - - 84,05,204 As at 31/03/2017 ------As at 01/04/2016 75,00,000 75,00,000 As at 8,37,20,000 1,65,00,000 - 31/03/2017 - Deletions / Withdrawals - - - - - Period 51,15,532 19,513 15,92,23,050 2,63,03,140 2,88,88,802 For the - - - - - (Amt in Rs.) As at 01/04/2016 TGWUGFHTQOVJGGZKUVKPINGCUGJQNFRTQRGTV[ 84,05,204 11,29,103 7,07,167 51,907 75,00,000 75,00,000 75,00,000 75,00,000 7,59,074 4,21,936 3,70,029 As at 1,65,00,000 1,65,00,000 - 31/03/2017 - - 15,00,000 15,00,000 - 15,00,000 - 45,420 1,69,95,530 50,35,797 20,17,628 19,513 70,33,912 1,19,42,258 99,61,618 7,86,420 18,81,11,853 15,41,27,033 7,86,420 16,32,06,649 13,76,27,033 51,15,532 19,513 14,27,23,050 2,63,03,140 2,04,83,598 Withdrawals ** Deletions / 4 ------GROSS BLOCK DEPRECIATION NET BLOCK 62,895 62,895 84,68,099 84,05,20 84,05,204 84,05,204 - - - 84,05,204 Additions - As at GVWRCVVJGPGYRTGOKUGUKPENWFKPIQHWVKNKUCVKQPQHOCVGTKCNU 18,04,30,174 01/04/2016 5 21,44,236 - 21,44,236 16,73,639 3,01,480 19,75,119 4,70,597 1,69,117 Total I 16,39,30,174 Total II 1,65,00,000 Total III years Life in Useful Total (I+II+III) 1HſEG'SWKROGPVU GRAND TOTAL Capital W.I.P.++ Particulars 1 Leasehold Rights & Improvements2 Camera Equipments - 3 Computer 1,49,80,1804 Software / Content Library 13 - 33,00,050 7,41,000 8,37,20,000 3 1,42,39,180 1,16,83,264 72,95,724 6,95,311 - 33,00,050 1,23,78,573 8,37,20,000 28,60,871 32,96,916 8,37,20,000 72,95,724 35,860 18,60,607 57,87,590 5,46,400 28,96,731 4,39,179 63,33,990 4,03,319 15,08,134 9,61,734 7 Studio Equipments8 Furniture & Fittings9 13 10 2,90,66,612 35,98,864 - - 2,90,66,612 2,21,53,416 35,98,864 12,39,139 24,73,677 1,66,179 2,33,92,555 69,13,196 26,39,856 56,74,057 11,25,186 9,59,007 5 Studio Bulbs6 Vehicles - 8 & 10 5,17,769 1,69,78,055 2 Goodwill3 IPR / Remake Rights 5,17,769 5,17,769 5 5 - 15,00,000 75,00,000 5,17,769 1 Brand Equity - 75,00,000 1. 10 Airconditioner11 Generator 5 10 7,75,291 11,29,103 7,75,291 6,52,137 53,718 7,05,855 1,23,154 69,436 12 Stabilizer & UPS 10 4,24,290 4,24,290 3,61,706 7,911 3,69,617 62,584 54,673 Sl. NO I. Tangible Assets 4.09. FIXED ASSETS SCHEDULE UNDER THE COMPANIES ACT, 2013 III. Capital W.I.P. Ŏ 6JGGZRGPFKVWTGKPEWTTGFHQTQHſEGKPVGTKQTCPFUVWFKQU II. Intangible Assets 58 CONSOLIDATED FINANCIAL STATEMENTS ANNUAL REPORT 2016 - 2017 As At As At PARTICULARS 31/03/2017 31/03/2016 (Amt in Rs.) (Amt in Rs.) 4.14 Trade Receivables Debts outstanding for a period exceeding six months Unsecured Considered Good 2,60,15,079 2,63,37,439 Considered Doubtful 1,41,07,975 2,41,42,215 4,01,23,054 5,04,79,654 /HVV 3URYLVLRQIRU'RXEWIXOGHEWV 40,73,735 1,41,07,975 :ULWWHQRIIGXULQJWKHSHULRG 5HIHU1RWHE 1,00,34,240 1,00,34,240 - Total a 2,60,15,079 2,63,37,439 Other debts Unsecured Considered Good 5,15,44,393 6,34,67,894 Unsecured Considered Doubtful - - - Total b 5,15,44,393 6,34,67,894 7RWDODE 7,75,59,472 8,98,05,334 4.15 Cash and Cash Equivalents Cash on Hand 3,35,352 75,053 %DODQFHZLWK%DQNVLQ&XUUHQW$FFRXQWV 8,46,576 11,35,124 11,81,928 12,10,177 4.16 Short - Term Loans and Advances Unsecured, Considered Good /RDQVDQGDGYDQFHVWRHPSOR\HHV 4,84,047 5,53,875 $GYDQFHVWR$UWLVWV 17,30,268 - $GYDQFHVWR7HFKQLFLDQV 43,756 1,43,700 $GYDQFH3URGXFWLRQV 1,40,92,454 76,77,648 3UHSDLGH[SHQVHV 78,498 2,05,908 $GYDQFH86(YHQWV 1,08,75,000 - $GYDQFHRWKHUV 2,36,500 7,99,471 Other taxes credits 31,638 86,567 - Total a 2,75,72,161 94,67,169 Unsecured, Considered doubtful /RDQVDQGDGYDQFHVWR7HFKQLFLDQ HPSOR\HHV 6,65,003 6,65,003 /HVV 3URYLVLRQPDGH 6,65,003 6,65,003 - Total b - - 7RWDODE 2,75,72,161 94,67,169 4.17 Other Current Assets /LQH3URGXFWLRQ3LFWXUHV 1,04,01,906 1,04,01,906 $GYDQFHIRU)LOP$FTXLVLWLRQULJKWV 3,00,00,000 3,00,00,000 - Total a 4,04,01,906 4,04,01,906 /HVV 3URYLVLRQVPDGH7RWDOE 1,04,01,906 1,04,01,906 7RWDODE 3,00,00,000 3,00,00,000 YEAR ENDED YEAR ENDED PARTICULARS 31/03/2017 31/03/2016 (Amt in Rs.) (Amt in Rs.) 4.18 Revenue from Teleserials / Films / Events & Shows ,QFRPHIURPWHOHVHULDOV(YHQWV VKRZVHWF 28,07,62,628 30,02,22,627 Digital Income 2,73,08,598 2,15,23,615 Re run rights - 22,50,000 30,80,71,226 32,39,96,242 4.19 Other Income Gain on foreign currency reinstatement 52,730 1,13,611 'LYLGHQGLQFRPHIURP$QGKUD%DQN 300 1,200 Other misc. Income 2,40,045 12,17,538 2,93,075 13,32,349 CONSOLIDATED FINANCIAL STATEMENTS 59 ANNUAL REPORT 2016 - 2017 YEAR ENDED YEAR ENDED PARTICULARS 31/03/2017 31/03/2016 (Amt in Rs.) (Amt in Rs.) 4.20 Expenses on television shows etc., 3D\PHQWVWR$UWLVWV 3,49,82,021 3,91,75,537 'XEELQJ&KDUJHV $UWLVWV([SHQVHVHWF 20,63,800 18,22,526 Telecast Charges 12,69,36,525 12,98,23,950 $UW 6HW3URSHULWHV5HQW 12,66,101 23,05,154 3D\PHQWVWR7HFKQLFLDQV 2,85,10,542 3,50,52,330 2WKHU3URGXFWLRQ([SHQVHV 36,01,398 43,17,695 7LWOLQJ (IIHFW&KDUJHV 4,17,500 5,02,850 %DWWD([SHQVHV 1,40,88,405 1,49,39,228 Costumes & Makeup 8,74,822 14,49,241 /LJKWLQJ *HQHUDWRU+LUH&KDUJHV 21,51,836 27,03,597 (TXLSPHQW+LUH 0DLQWHQDQFH&KDUJHV 4,66,444 9,03,889 7UDYHO6WD\ RWKHUH[SHQVHV3URGXFWLRQ 40,49,377 54,20,351 9HKLFOHV0DLQWHQDQFH +LUH&KDUJHV 37,39,713 45,32,058 6WRUDJHGHYLFHV 19,450 6,725 8QVROG)&7:ULWWHQRII 5HIHU1RWHD 26,60,400 27,08,580 3URGXFWLRQ([SHQVHV7HOHVHULDOV(YHQWV 3,26,931 21,13,049 /RFDWLRQ5HQW 77,57,322 83,69,397 &DWHULQJ([SHQVHV 54,03,417 65,56,530 Amorisation of Tele Serial rights 2,93,54,900 2,78,77,128 26,86,70,904 29,05,79,815 /HVV 7HOHVHULDO([SHQVHVGHIHUUHG 2,99,15,965 2,99,16,006 23,87,54,939 26,06,63,809 4.21 Changes in Inventories & Work-in-progress 2SHQLQJ%DODQFH :RUNLQSURJUHVVWHOHYLVLRQVKRZV 2,09,95,652 1,90,88,574 Total A 2,09,95,652 1,90,88,574 &ORVLQJ%DODQFH :RUNLQSURJUHVVWHOHYLVLRQVKRZV 1,49,36,973 2,09,95,652 7RWDO% 1,49,36,973 2,09,95,652 7RWDO$% 60,58,679 (19,07,078) (PSOR\HH%HQH¿W([SHQVHV Salaries 1,91,91,397 2,10,16,922 &RQWULEXWLRQWR3) (6,DQGRWKHUIXQGV 8,23,737 8,71,279 Staff Welfare 10,77,615 10,01,915 2,10,92,749 2,28,90,116 4.23 Other expenses 6DODU\WRZKROHWLPHGLUHFWRU 5HIHU1RWH 42,00,000 38,50,000 Insurance Charges 4,86,779 3,58,075 /RVVRQH[FKDQJHYDULDWLRQ 8,59,823 2,05,345 /RVVRQVDOHRI0RWRUF\FOH 15,407 10,220 2WKHU$GPLQLVWUDWLYH&KDUJHV 12,22,264 14,46,801 Sitting Fees 4,70,000 4,40,000 3RRMD([S 3,76,776 3,32,979 3RVWDJH7HOHSKRQHFKDUJHV 10,00,151 9,06,869 3ULQWLQJ 6WDWLRQHU\ 1,95,931 2,88,200 3URIHVVLRQDO &RQVXOWDQF\&KDUJHV 27,47,333 13,06,036 $XGLWRU VIHHV 5HIHU1RWH 5,95,197 6,03,723 /LVWLQJIHHV 3,76,127 2,17,952 Rent, Rates & Taxes 26,00,000 18,00,000 Repairs & Maintenance 18,14,124 18,92,102 7UDYHOLQJ &RQYH\DQFH 12,76,730 11,41,699 9HKLFOH0DLQWHQDQFH 1,55,800 3,37,855 $GYHUWLVHPHQW([SHQVHV%XVLQHVV3URPRWLRQ 85,153 1,56,771 1,84,77,595 1,52,94,627 4.24 Finance Cost Interest & Finance Charges 1,06,47,150 1,22,72,462 %DQN&KDUJHV 2,93,466 5,74,533 1,09,40,616 1,28,46,995 60 CONSOLIDATED FINANCIAL STATEMENTS ANNUAL REPORT 2016 - 2017 4.25 7KH QRWH QR WR XQGHU QRWHV RQ DFFRXQWV RI WKH VWDQGDORQH ¿QDQFLDO VWDWHPHQW RI 5DGDDQ 0HGLDZRUNV ,QGLD /LPLWHGLVWREHUHDGDORQJZLWKFRQVROLGDWHG¿QDQFLDOVWDWHPHQW 4.26 Earnings per Equity Share: Sl. No Particulars 2016-17 (Amt in Rs) 2015-16 (Amt in Rs) 1 3UR¿W /RVV EHIRUH([WUDRUGLQDU\LWHPV 79,38,645 87,92,442 2 3UR¿W /RVV DIWHU([WUDRUGLQDU\LWHPV 79,38,645 87,92,442 :HLJKWHG$YHUDJH1RRIHTXLW\VKDUHV LQFOXGLQJ 3 5,41,61,540 5,41,61,540 ERQXV IRU%DVLF'LOXWHG(DUQLQJVSHUVKDUH 4 %DVLF 'LOXWHG(36EHIRUHH[WUDRUGLQDU\LWHPV 0.15 0.16 5 %DVLF 'LOXWHG(36DIWHUH[WUDRUGLQDU\LWHPV 0.15 0.16 4.27 ADDITIONAL INFORMATION WITH REGARD TO SUBSIDIARY COMPANY: a. With reference to the general instructions for the preparation of Consolidated Financial Statement of Schedule III read with Section 129 of the Companies Act, 2013, the following information is disclosed as additional information. 1DPHRIWKH3DUHQWFRPSDQ\ 5DGDDQ0HGLDZRUNV,QGLD/LPLWHG,QGLD Name of the Subsidiary company 5DGDDQ0HGLD9HQWXUHV3WH/LPLWHG6LQJDSRUH 1HW$VVHWVLHWRWDODVVHWV±WRWDOOLDELOLWLHVDV 6KDUHLQ3UR¿WRU/RVVIRUWKH\HDUHQGHG 6XEVLGLDU\±)RUHLJQ at 31.03.2017 31.03.2017 As % of consolidated As % of consolidated $PRXQW LQ5V $PRXQW LQ5V net assets net assets 1 2345 5DGDDQ0HGLD9HQWXUHV3WH/WG 100% 1,/ 100% Singapore. E ([FKDQJH5DWHXVHG 5V3HUXQLWRI6LQJDSRUH'ROODU )RU%DODQFHVKHHW )RU3UR¿W /RVV )LJXUHVKDYHEHHQURXQGHGRIIWRWKHQHDUHVWUXSHH As per our report attached For M/s.CNGSN & Associates LLP On behalf of the Board of Directors Chartered Accountants )51R 6//31R 6 -sd- -sd- -sd- R.Radikaa Sarathkumar A.Krishnamoorthy C.N.Gangadaran Chairperson & Managing Director Director 3DUWQHU Membership No.: 011205 -sd- -sd- M.Kavirimani Kanhu Charan Sahu &KLHI)LQDQFLDO2I¿FHU Company Secretary 3ODFH &KHQQDL Date : 26th May 2017 CONSOLIDATED FINANCIAL STATEMENTS 61 ANNUAL REPORT 2016 - 2017 NOTE 62 ANNUAL REPORT 2016 - 2017 RADAAN MEDIAWORKS INDIA LIMITED &,1 / 71 3/& 5HJLVWHUHG2I¿FH 1R-D\DPPDO5RDG7H\QDPSHW&KHQQDL 7HO _)D[ _(PDLO LQIR#UDGDDQWY_:HEVLWH ZZZUDGDDQWY FORM OF PROXY >3XUVXDQWWR6HFWLRQ RIWKH&RPSDQLHV$FWDQG5XOH RIWKH&RPSDQLHV 0DQDJHPQWDQG$GPLQLVWUDWLRQ 5XOHV@ 18th Annual General Meeting – 30th September 2017 1DPHRIWKHPHPEHU V Registered Address (PDLO,' No of shares )ROLR1R&OLHQW,' '3,' held *Applicable for investors holding shares in Electronic form. ,:HEHLQJDPHPEHUPHPEHUVRIWKHDERYHFRPSDQ\KHUHE\DSSRLQW Name Address (PDLO,' VLJQDWXUHRIWKH3UR[\ or failing him/her Name Address (PDLO,' VLJQDWXUHRIWKH3UR[\ or failing him/her Name Address (PDLO,' VLJQDWXUHRIWKH3UR[\ DVP\RXU3UR[\WRDWWHQGDQGYRWH RQDSROO IRUPHXVDQGRQP\RXUEHKDOIDWWKHWK$QQXDO*HQHUDO0HHWLQJRIWKH&RPSDQ\ to be held on 30th6HSWHPEHUDWDPDW0DGUDV5DFH&OXE*XLQG\/RGJH*XLQG\&KHQQDLDQGDWDQ\ adjournment thereof in respect of such resolutions as are indicated below; PROXY FORM 63 ANNUAL REPORT 2016 - 2017 Vote (optional see Note 2) Resolution Resolution (Please mention no. of shares) No. For Against Abstain Ordinary business $GRSWLRQRIDXGLWHG¿QDQFLDOVWDWHPHQWVRIWKHFRPSDQ\RQVWDQGDORQH DQGFRQVROLGDWHGEDVLVIRUWKH¿QDQFLDO\HDUHQGHGst March 2017, 1 LQFOXGLQJWKHEDODQFHVKHHWVWDWHPHQWRISUR¿WDQGORVVDQGWKHUHSRUWVRI the auditors and directors thereon $SSRLQWPHQWRIDGLUHFWRULQSODFHRI0U5DPDQDWKDQ6DUDWKNXPDU ',1 2 ZKRUHWLUHVE\URWDWLRQDQGEHLQJHOLJLEOHRIIHUVKLPVHOIIRU reappointment 3 Appointment of auditors Signed this ...... day of ...... 2017. 5HYHQXH Stamp Signature (s) of Member(s) 1. ______ 2. ______ 3. ______ Notes: 7KH3UR[\WREHHIIHFWLYHVKRXOGEHGHSRVLWHGDWWKH5HJLVWHUHGRI¿FHRIWKHFRPSDQ\QRWOHVVWKDQ)257<(,*+7+2856EHIRUHWKH commencement of the Meeting. 2. It is optional to indicate your preference. If you leave the for, against or abstain column blank against any or all resolutions, your proxy will be entitled to vote in the manner as he / she may deem appropriate. 64