Utv Software Communications Limited

PROSPECTUS Dated March 04, 2005 Please read Section 60 of the Companies Act, 1956 100% Book Building Issue UTV SOFTWARE COMMUNICATIONS LIMITED (Originally incorporated as ‘United Software Communications Private Limited’ on June 22, 1990 in Mumbai under the Companies Act, 1956. The Company became a deemed Public Limited Company and the word ‘Private’ was deleted on November 27, 1995. The Company amended its Articles of Association at the Extra-Ordinary General Meeting held on May 8, 2000 after which the Company became a Public Limited Company. The name was changed to ‘UTV Software Communications Limited’ with effect from March 19, 1998, hereinafter referred to as (“UTV/The Company/The Issuer”) Registered Office & Corporate Office: Paarijaat House, 1076, Dr. E.Moses Road, Worli Naka, Mumbai 400 018 (Formerly located at ‘A’ Block, Shivsagar Estate, Dr. A.B.Road, Worli, Mumbai 400 018 and subsequently shifted to UTV House,#7 Marwah Estate’ Krishanlal Marwah Marg, Saki Naka, Andheri (E), Mumbai – 400 072, India)Phone: +91 22 2490 5353; Fax: +91 22 2490 5370 Website: www.utvnet.com; Email: [email protected] Public Issue of 6,999,950 equity shares comprising fresh issue of 4,500,000 equity shares of Rs.10 each at a price of Rs.130 for cash aggregating Rs.5,850 lakhs and offer for sale of 2,499,950 equity shares of Rs.10 each at a price of Rs.130 for cash aggregating Rs.3,249.94 lakhs (hereinafter referred to as the “Issue”) comprising reservation of 349,950 equity shares for employees on a competitive basis; net issue to public of 6,650,000 equity shares . The ‘net issue to public’ would constitute 34.11% of the fully diluted post issue paid-up capital of the Company. The Issue is being made through 100% Book Building Process wherein up to 50% of the Net Issue to Public shall be allocated to Qualified Institutional Buyers on a discretionary basis, not less than 25% of the Net Issue to Public would be allocated to Non- Institutional Investors and not less than 25% of the Net Issue to Public would be allocated to Retail Individual Investors on a proportionate basis, subject to valid bids being received from them at or above the Issue Price Issue Price : Rs. 130 per Equity Share of Rs.10 Each The Issue Price is 13 times of the face value RISK IN RELATION TO FIRST ISSUE This being the first issue of the Equity Shares of UTV, there has been no formal market for the Equity Shares of the Company. The face value of the Equity Shares is Rs. 10/- (Rupees Ten Only) and the Issue Price is 13 times of the face value . The Issue Price (as determined by the Company and CDP Media Holdings (India) Limited, Mauritius in consultation with the Book Running Lead Manager, on the basis of assessment of market demand for the Equity Shares by way of book building) should not be taken to be indicative of the market price of the Equity Shares after the Equity Shares are listed. No assurance can be given regarding an active and/or sustained trading in the Equity Shares of the Company or regarding the price at which the Equity Shares will be traded after listing. GENERAL RISKS Investment in equity and equity-related securities involve a degree of risk and investors should not invest any funds in this Issue unless they can afford to take the risk of losing their investment. Investors are advised to read the Risk Factors carefully before taking an investment decision in this Issue. For taking an investment decision, investors must rely on their own examination of the Company and the Issue including the risks involved. The Equity Shares offered in the Issue have not been recommended or approved by the Securities and Exchange Board of India (SEBI), nor does SEBI guarantee the accuracy or adequacy of this Prospectus. Specific attention of the investors is invited to the statements in Risk Factors beginning on page no. iv of this Prospectus. ISSUER’S ABSOLUTE RESPONSIBILITY The Company, having made all reasonable inquiries, accepts responsibility for, and confirms that this Prospectus contains all information with regard to the Company and the Issue, which is material in the context of the Issue, that the information contained in this Prospectus is true and correct in all material aspects and is not misleading in any material respect, that the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission of which makes this Prospectus as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect. LISTING The Equity Shares of the Company issued through this Prospectus are proposed to be listed on The Stock Exchange, Mumbai and the National Stock Exchange of India Limited. We have received in-principle approvals for listing our Equity Shares from the aforesaid stock exchanges through their letters dated January 17, 2005 and January 18, 2005 respectively. BOOK RUNNING LEAD MANAGER TO THE ISSUE REGISTRAR TO THE ISSUE ENAM FINANCIAL CONSULTANTS KARVY COMPUTERSHARE PRIVATE LIMITED PRIVATE LIMITED “Karvy House” 46, Avenue 4, Street No. 1 801, Dalamal Towers Banjara Hills, Hyderabad 500 034 Nariman Point, Mumbai 400 021, India Andhra Pradesh, India’ Tel. : +91- 22- 5638 1800 Tel. : +91- 40- 2331 2454 Fax. : +91- 22- 2284 6824 Fax. : +91- 40- 2331 1968 Email:[email protected] Email: [email protected] ISSUE PROGRAMME BID/ISSUE OPENS ON : FEBRUARY 21, 2005 BID/ISSUE CLOSES ON : FEBRUARY 25, 2005 TABLE OF CONTENTS Definitions and Abbreviations ....................................................................................................................... a Issue Related Abbreviations ......................................................................................................................... f SECTION I: RISK FACTORS Certain Conventions; Use of Market Data ............................................................................................. i Forward-Looking Statements ................................................................................................................. ii Currency of Presentation ....................................................................................................................... iii Risk Factors ............................................................................................................................................ iv SECTION II: INTRODUCTION Summary ................................................................................................................................................ 1 Our Competitive Strengths .................................................................................................................... 3 Our Strategy ........................................................................................................................................... 5 The Issue ................................................................................................................................................ 6 General Information ................................................................................................................................ 7 Capital Structure ..................................................................................................................................... 18 Objects Of the Issue ............................................................................................................................... 29 SECTION III: ABOUT US Industry Overview .................................................................................................................................. 36 Business Overview ................................................................................................................................ 37 Our History ............................................................................................................................................. 85 Our Management ................................................................................................................................... 91 Our Promoters ........................................................................................................................................ 105 Our Subsidiaries ..................................................................................................................................... 106 Our Group Companies ............................................................................................................................ 112 SECTION IV: FINANCIAL INFORMATION Unconsolidated Restated Financial Statements for 5 years ending March 31, 2004 and half year ended September 30, 2004 ........................................................................................................... 123 Audit Financial Statements for the period ended September 30, 2004 ............................................... 172 Consolidated Financial Statements ....................................................................................................... 202 Management’s Discussion and Analysis of Financial Condition and Results of Operations ............... 217 SECTION V: LEGAL AND REGULATORY INFORMATION Outstanding Litigations & Defaults ......................................................................................................... 227 Material Developments .......................................................................................................................... 240 Government Approvals .........................................................................................................................

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