The People's Channel
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The People’s Channel 21st Annual Report 2014 - 2015 RAJ TELEVISION NETWORK LTD., 32, Poes Road, 2nd Street, Teynampet, Chennai - 600 018. Tel : 044 - 24334149/50/51, 24351898/2926 Fax : 91-44-24341260 Web: www.rajtvnet.in CONTENTS INSIDE THIS REPORT CORPORATE OVERVIEW STATUTORY REPORTS 01-01 / RAJ NETWORK CHANNELS 20-20 / CHAIRMAN'S MESSAGE 02-02 / ABOUT US 21-27 / NOTICE 28-32 / DIRECTOR'S REPORT 03-03 / FINANCIAL HIGHLIGHTS 33-44 / MANAGEMENT DISCUSSION AND ANALYSIS 04-04 / GROWTH DRIVERS 45-55 / DIRECTOR'S REPORT ANNEXURES CONTENT BOUQUET 56-66 / REPORT ON CORPORATE GOVERNANCE 67-69 / CERTIFICATION ON FINANCIAL STATEMENTS 05-10 / LEADING SERIALS 70-71 / INDEPENDENT AUDITOR'S REPORT 11-12 / LEADING PROGRAMS FINANCIAL STATEMENTS - STAND ALONE 13-15 / MEGA EVENTS 72-72 / BALANCE SHEET 73-73 / PROFIT AND LOSS STATEMENT 16-16 / REALITY SHOW 74-74 / CASH FLOW STATEMENT 17-18 / CSR ACTIVITIES 75-81 / NOTES FORMING PART OF THE FINANCIAL STATEMENTS 19-19 / DIGITAL CINEMAS 82-85 / NOTES ON ACCOUNTS 86-87 / ATTENDANCE SLIP & PROXY FORM FORWARD LOOKING STATEMENT In this Annual Report, we have disclosed forward looking information to enable investors to comprehend our prospects and take investment decisions. This report and other statements - written and oral - that we periodically make contain forward looking statements that set out anticipated results based on the management’s plans and assumptions. We have tried, wherever possible, to identify such statements by using words such as ‘anticipate’, ‘estimate’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward looking statements will be realised, although we believe we have been prudent in our assumptions. The achievements of results are subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialise, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Readers should keep this in mind. We undertake no obligation to publicly update any forward looking statement, whether as a result of new information, future events or otherwise. 01 / ANNUAL REPORT 2014-2015 RAJ TELEVISION NETWORK LTD., RAJ TELEVISION NETWORK LIMITED Raj Television Network Ltd.,South India's largest media conglomerate has powerpacked 13 TV Channels with the reach of more than 95 million households in India. RAJ TV Network's Channels can be viewed in all countries. RAJ DIGITAL PLUS RAJ NEWS TAMIL RAJ MUSIX TAMIL VISSA TV Raj Digital Plus is a Raj News is a Raj Musix is a Vissa TV is a Family Tamil Based Movie Tamil Based 24/7 News Tamil Based Music Entertainment Channel Channel. Channel. Channel. in Telegu. RAJ NEWS KANNADA RAJ MUSIX KANNADA RAJ NEWS TELUGU RAJ MUSIX TELUGU Raj News Kannada is a Raj Musix Kannada Raj Musix Telugu is a Raj Musix Telugu is a Kannada Based is a Kannada Based Telugu Based Music Telugu Based Music 24/7 News Channel. Music channel. Channel. Channel. RAJ NEWS MALAYALAM RAJ MUSIX MALAYALAM RAJ ASIA RAJ PARIVAAR Raj News Malayalam is a Raj Musix Malayalam is a Raj Asia is a GEC Raj Parivaar is a Malayalam Based Malayalam Based in Tamil Telecasted in GEC in Hinidi. 24/7 News Channel. Music Channel. Overseas. 43 13 04 COUNTRIES CHANNELS INTERNATIONAL BEAMS THE PEOPLE’S CHANNEL 02 / ANNUAL REPORT 2014-2015 RAJ TELEVISION NETWORK LTD., ABOUT US Raj Television Network Ltd., incorporated on June 3,1994 to Channels provide wholesome entertainment for the entire family Tamil Language and it is the largest Television sattellite broadcasters in Raj TV, Raj Musix, Raj Digital Plus South India. and Raj News Currently operating 13 Channels and owns over 2641 Film Kannada Language Raj Musix Kannada & Rights, hidden value worth more than Rs.400 Crores. Raj News Kannada Owns Land and building with 75,000 Sq feet in Chennai Telugu Language and Hyderabad and the First 24 hours Tamil Movie Channel Raj Musix Telugu, Raj News Telugu ‘Raj Digital Plus’. Having Sales and marketing offices across and Vissa TV Hindi Language India. Raj Parivaar Business Activities: Malayalam Language Broadcasting Southern Entertainment Channels. Channel content Include Movies, Raj Musix Malayalam & Comedy Shows, Game shows, Music shows, News time, etc.Export of content in Raj News Malayalam. foreign market and Web casting movie content over the Internet, IP TV, OTT Upcoming Channels Technologies and various mediums of Infotainment. A lot of effort is being taken to Raj Nagaichuvai (Tamil), ensure that the programming mix appeals to people of all ages, of all background Raj Kids (Tamil) & making it truly a PEOPLE'S CHANNEL. Raj Movies (Kannada) are in pipe line. BOARD OF DIRECTORS RAJ TELEVISION NETWORK LIMITED CHANNELS MR. M. RAJENDRAN MANAGING DIRECTOR 32, Poes Road, 2nd Street, MR. M. RAJARATHNAM DIRECTOR- DISTRIBUTION Teynampet, Chennai - 600 018 MR. M. RAVINDRAN DIRECTOR- OPERATIONS Tel: +91- 44 -24334149 – 51, MR. M. RAGHUNATHAN DIRECTOR-MARKETING MR. D. R. KAARTHIKEYAN INDEPENDENT DIRECTOR Fax: +91- 44 - 24341260 MR. R. RAJAGOPALAN INDEPENDENT DIRECTOR Email : [email protected], MR. A. ARJUNA PAI INDEPENDENTDIRECTOR Website: www.rajtvnet.in, www.rajtv.tv MR. MOHAN KAMESWARAN INDEPENDENT DIRECTOR CHIEF FINANCIAL OFFICER REGISTRAR AND SHARE TRANSFER AGENT MR. S. JEYASEELAN. CAMEO CORPORATE SERVICES LIMITED COMPANY SECRETARY & COMPLIANCE OFFICER MR. JOSEPH CHERIYAN: (ACS) SUBRAMANIAN BUILDING, AUDIT COMMITTEE NO.1, CLUB HOUSE ROAD,CHENNAI - 600 002, MR. A. ARJUNA PAI (CHAIRMAN) PHONE NO. 044-28460390-94,FAX NO. 28460129 MR. R. RAJAGOPALAN MR. M. RAVINDRAN EMAIL: [email protected] NOMINATIONAND REMUNERATION COMMITTEE STOCK EXCHANGE(S) & STOCK CODE(S) MR. R. RAJAGOPALAN (CHAIRMAN) NATIONAL STOCK EXCHANGE OF INDIA LIMITED (RAJTV) MR. D. R. KAARTHIKEYAN MR. A. ARJUNA PAI BSE LIMITED (532826) SHAREHOLDERS & INVESTORS RELATIONSHIP COMMITTEE BANKERS MR. D. R. KAARTHIKEYAN (CHAIRMAN) CANARA BANK - TEYNAMPET BRANCH MR. M. RAJENDRAN, MR. M. RAVINDRAN STATE BANK OF INDIA - OVERSEAS BRANCH CSR COMMITTEE INDIAN BANK - ANNA SALAI MR. D. R. KAARTHIKEYAN (CHAIRMAN) ICICI BANK LIMITED MR. R. RAJAGOPALAN REGIONAL OFFICES MR. M. RAGHUNATHAN STATUTORY AUDITORS DELHI M/S PRATAPKARAN PAUL & CO, 1407-08, ANSAL TOWERS , 14TH FLOOR, CHARTERED ACCOUNTANTS 38,NEHURU PLACE , NEW DELHI -110 019 B-8, GEMS COURT, NO.25/14, KHADER NAWAZ KHAN ROAD, HYDERABAD NUNGAMBAKKAM, CHENNAI - 600 006. FLAT NO. 8-2-293/82/A/656/1,ROAD NO. 32, SECRETARIAL AUDITORS JUBILEE HILL, HYDERABAD, 500 033. M/S NAGARAJAN & CO., NEW NO. 29 KAVARAI STREET, MUMBAI WEST MAMBALAM, CHENNAI 600 033 NO. 105, SWAPNA CO-OP HSG SOCIETY, INTERNAL AUDITORS 1ST FLR, S.K. BHOLE MARG, DADAR WEST, SARAVANAN AND CO., CHARTERED ACCOUNTANTS. MUMBAI - 400 028. KGEYES SRINIVASS FLATS, NO.7, SRINIVASAPURAM IST ST, BANGALORE THIRUVANMIYUR, CHENNAI – 600 041. K.K.M.P BUILDING, SECOND FLOOR, LEGAL COUNCIL HSB PARTNERS NO.16/1, MILLER TANK NAGAR, CAPITALE, 9TH FLOOR, BANGALORE-560 052. 555 ANNA SALAI , TEYNAMPET, CHENNAI 600 018 THE PEOPLE’S CHANNEL 03 / ANNUAL REPORT 2014-2015 RAJ TELEVISION NETWORK LTD., FIVE YEAR FINANCIAL HIGHLIGHTS (Amounts in Rs. Crores) FIVE YEAR FINANCIAL HIGH LIGHTS Year Ending 31st March 2011 2012 2013 2014 2015 REVENUE ACCOUNT REVENUE FROM OPERATIONS 44.55 54.06 67.54 79.48 83.01 OTHER INCOME 0.55 0.68 0.73 1.06 0.88 TOTAL INCOME 45.10 54.74 68.27 80.54 83.89 % to Income from Operations % 99% 99% 99% 99% 99% Operation Expenses ` 18.20 18.23 26.82 23.72 21.24 Employee Benet Expenses ` 7.09 10.12 11.68 17.60 22.90 Depreciation and Amortisation Expenses ` 4.31 3.29 3.68 3.96 6.47 Finance Cost ` 1.15 1.88 3.87 4.68 6.33 Administrative and other Expenses ` 24.37 11.36 12.57 14.69 13.97 TOTAL EXPENDITURE ` 55.12 44.89 58.61 64.65 70.93 PBDIT ` -4.56 15.03 17.21 24.52 25.77 PBT ` -10.02 9.86 9.66 15.89 12.97 TAX EXPENSES ` -0.21 0.64 0.37 2.98 4.81 PAT ` -9.81 9.21 9.29 12.91 8.16 % TO TOTAL INCOME % -22% 17% 14% 16% 10% Dividend ` - 1.30 1.30 1.95 2.60 Dividend Rate % 10% 10% 15% 10% Number of Employees 267 317 365 515 625 CAPITAL ACCOUNT - - - - Share Capital ` 12.98 12.98 12.98 25.96 25.96 Reserve and surplus ` 74.01 81.72 89.50 131.37 129.34 BANK BORROWINGS - - - - - Long Term Borrowings ` 1.27 9.74 7.05 12.49 1.38 Short Term Borrowings ` 6.97 7.69 7.09 24.97 24.40 TOTAL BANK BORROWINGS ` 8.23 17.43 14.15 37.47 25.79 Other Long term Liabilities ` 8.22 9.11 9.90 9.31 9.10 Current Liabilities Excluding short term borrowings ` 4.33 5.52 19.75 12.42 10.02 CAPITAL EMPLOYED ` 107.77 126.75 139.18 216.52 200.20 Current Assets ` 41.77 50.39 53.45 77.65 76.10 Fixed Assets ` 45.39 52.68 64.18 113.99 102.72 Other Non Current Assets ` 20.61 23.68 21.54 24.89 21.38 CAPITAL DEPLOYED ` 107.77 126.75 139.18 216.52 200.20 Closing market price per share - - Face Value (Rs.) ` 10.00 10.00 10.00 5.00 5.00 Market Price ` 47.45 153.30 195.00 147.00 114.00 No of shares ` 12,978,336 12,978,336 12,978,336 51,913,344 51,913,344 MARKET CAPITALISATION ` 61.58 198.96 253.08 763.13 591.81 Performance Ratios an Analysis FINANCIAL PERFORMANCE Advertisement Income/Income from Operations % 40.44 55.62 57.69 44.28 60.81 Airtime Selling income / income From operations % 28.29 24.89 19.38 17.43 21.19 Subscription Income/Income from Operations % 31.27 19.50 22.93 38.29 17.99 Operating Prot/Income from Operations % -10.23 27.80 25.47 30.86 31.05 Other Income/Total Income % 1.22 1.26 1.08 1.33 1.06 Programming Cost/Income from Operations % 40.85 33.72 39.71 29.85 25.59 Personnel Cost/Income from Operations % 15.92 18.72 17.29 22.15 27.59 Selling and Admin Expenses/Income from Operations % 54.69 21.02 18.61 18.48 16.83 Total Operating Cost/Income from Operations % 122.22 81.99 85.86 80.27 84.54 Financial Expenses/Income from Operations % 2.54 3.43 5.67 5.81 7.55 Tax/Income from Operations % -0.46 1.18 0.54 3.70 5.73 Tax/PBT % 2.07 6.53 3.84 18.74 37.08 Dividend Payout/PAT for the year % - 14.09 13.98 15.08 31.82 Dividend Payout/Eective Networth % - 1.37 1.27 1.72 2.34 EFFECTIVE NETWORTH 86.99 94.7 102.47 113.12 111.09 BALANCE SHEET Debt-Equity ratio (Total loans/E.