ANNUAL REPORT 2008-09 Letter from the Chairperson 3 Report on Corporate Governance 8 Session with the CEO 5 Directors’ Report 11 Management Discussion and Analysis 6 Financial Statements 13 `CORPORATE INFORMATION_ BOARD OF DIRECTORS Smt. Shobhana Bhartia Chairperson and Editorial Director Marching forward Shri Roger Greville Shri K. N. Memani Maximising revenues, optimising cost, continuing quality investment Shri Y. C. Deveshwar Shri N. K. Singh Shri Priyavrat Bhartia Whole-time Director Shri Shamit Bhartia Whole-time Director CHIEF EXECUTIVE OFFICER Shri Rajiv Verma COMPANY SECRETARY Shri Dinesh Mittal AUDITORS S. R. Batliboi & Co. Chartered Accountants, New Delhi REGISTRAR & SHARE TRANSFER AGENT Karvy Computershare Private Limited Plot Nos. 17-24, Vittal Rao Nagar, Madhapur Hyderabad - 500 081 REGISTERED OFFICE Hindustan Times House 18-20, Kasturba Gandhi Marg New Delhi - 110 001, India HT MEDIA put up a spirited financial advertisement revenue by 11%. improved its readership by 26% over Round-2 Tel : +91-11-6656 1234 performance in FY 09. Its total revenue grew FY 09 also brought operations landmarks figure of 2008. After its launch in Kolkata in Fax : +91-11-2370 4600 by an impressive 12% to reach Rs. 1336 Crore. for HT Media. Indian Readership Survey, May 09, Mint is all set to reach Chennai in Website : www.htmedia.in The commendable performance was scripted Round-1 2009 has validated its leadership July 09 and thereby becoming a truly national in the backdrop of a very challenging year for position in Delhi and NCR region. Readership business daily of the country. THIS ANNUAL REPORT print media, where clients across major of Hindustan Times grew by 55% in Mumbai The spiralling global newsprint costs, Consists of 28 pages including 16 pages of Financial advertising sectors like automobile, real over Round-1 figure of 2008. Hindustan together with strengthening of US Dollar Statements. Notice of 7th Annual General Meeting, estate, consumer durables, electronics and maintained its leadership and emerged as the against Rupee, posed major cost challenge. Proxy Form and Attendance Slip are enclosed separately. BFSI cut their advertising expenditure fastest growing Hindi daily in the country. HT Media responded quickly to switch to a significantly. HT Media still grew its Mint, India's second largest business daily, Continued on Page 4 A billion people on the move HT Media is informing people, reforming thoughts SINCE BECOMING a trillion dollar has been reforming the views and economy in FY07, India is on the thoughts of upwardly mobile move. As the second fastest growing Indians with thought-provoking economy for some years now, the news coverage everyday. Its weekly country is throwing open a sea of specials have been bringing to them opportunity to its citizens living in the best of trends and opportunities metros, cities and even villages. from the world of travel, education, Development is fast approaching the job, real estate. Millions of readers last mile in the form of connectivity from across the strata have been through phones, broadband internet, benefiting from the informative, power, cable & satellite television, civic investigative and thought- infrastructure, and basic health & instigating stories of Hindustan education. Times. Responding to the opportunity are a The aspirations of the Hindi billion-plus Indians, up-scaling reading and speaking Indians aren't themselves with enhanced knowledge any smaller. Their increasing and skills. HT Media has actively participation in the GDP generating participated in the Indian growth story activities is a true reflection of them over decades. It continued to play its role brushing up their awareness and of an informer, educator and entertainer skill-levels. HT Media's Hindi daily, throughout the year. Hindustan, has been catalysing them Its English daily, Hindustan Times Continued on Page 4 A TRIBUTE TO DR. K. K. BIRLA A philanthropist, a legend of industry and a builder of modern institutions HE BECAME the president of FICCI in apprehensive about competition from 1974, when the country was facing severe abroad, he proactively supported inflationary pressures and recessionary Manmohan Singh, who as finance trends. Addressing Prime Minister Indira minister during 1991-96 helped to drag Gandhi, he critiqued the tight monetary India out of the protectionist era and policy and the raising of interest rate. ushered in economic reforms. "Many ''Demand management policies have business leaders were worried about the played out their role and should not be changes, but Mr. Birla understood the allowed to outlive their utility. Let us shift importance and relevance of what we the focus now on revival of demand and were doing." Prime Minister in particular supply expansion.'' He had Dr. Manmohan Singh said in December said words, that sound prescient to 2007 while launching Birla's conditions today. autobiography, “Brushes with History”. While many industrialists were Continued on Page 3 Demand management policies have played out their role and should not be allowed to outlive their utility. Let us shift the focus now on revival of demand and in particular supply expansion. 2 Creating content benchmarks Reflecting progress, highlighting neglect Fever rose to 104 FM HT MEDIA'S radio business, Fever 104, made significant strides in FY 09. Across the stations of Delhi, Mumbai, Bengaluru and Kolkata Fever 104 kept on improving its programming through the year. All the stations improved on their listener pool and the time spent by listeners. In the week 19 (3rd - 9th May, 2009), Fever 104's Mumbai station bagged the No. 1 position, while Delhi and Bengaluru became No. 2 stations in respective markets. The investment phase in these four stations is nearing completion. Radio segment was within the striking range from breaking even at the closure of FY 09 and going forward, it shall start contributing to the profitability of HT Media soon. An important development during the year was demerger of the Radio business from HT Music & Entertainment Company Limited and its subsequent merger with HT Media Limited. Delhi station conducted a first-ever radio Radio segment was within the HT MEDIA has taken its content potholed roads, and high incidence of survey seeking the audience's view on the benchmark to next level during FY 09 crime. The administration swung kind of programming mix they will like their striking range from breaking with Hindustan Times, Hindustan Both these awards are into action taking corrective favourite station to air. Inputs from and Mint. It is continuing to change a reflection of HT Media’s measures. Gurgaon residents wrote thousands of listeners gave an insight into even at the closure of FY 09 and the face of journalism in India. hundreds of mails to Hindustan their preferences and helped Fever 104 in going forward, it shall start News is no longer what most rising standards of Times, acknowledging the efforts and rolling out an engaging programming mix. people saw on television the night encouraging it to keep going with the Station went on to serve more music, more contributing to the profitability before. Packed with additional journalism that not only series. The campaign won an information and details, HT Media brings to readers the real International Press Award in May of HT Media soon publications make them a completely this year. new and insightful experience next stories of fast changing 'India Can, India Will' series of local connect and more humour. morning. The aim of getting close to India but also of success stories from across the The results were soon visible in the brand the readers and their concerns has country brought to light many people achieving the highest TSL, meaning the delivered several content journalism that makes who were turning adversity into maximum time spent by the audience on a benchmarks, which instigated a difference to the lives opportunity. Unheard and unknown, station. Fever 104 partnered with Delhi change - from apathy to action, and they were changing the country. Each Daredevils Team during the Indian Premier also won appreciations and awards. of readers story bore testimony to the spirit that League Cricket tournament, creating some High on the roll of honours was drives this country. engaging programming and becoming the 'India Yatra', a reporting exercise Hindustan Times' coverage of station of choice with over 35 Lac listeners. never undertaken before in Another investigative series on the 26/11, the horrific terrorist attack on Mumbai station underwent transmission- this country: 30 reporters, dwindling number of open spaces in Mumbai last November, was most quality improvisation in early 2008 and since 30 photographers fanned out to catch Mumbai highlighted how 49 of comprehensive and ahead of then, broke new ground by achieving the India at work, at home and in the Mumbai's open spaces were being competition. The articles - spots and highest TSL in the market in a short span of fields. The aim was to document the lost to private builders, and 20 of the specials - carried by Hindustan time. Launch of Fever 104 FM Digisound ™ aspirations, dreams, rage and city's gymkhanas were denying Times were published later as a book facilitated the state-of-the-art digital despair that impact the lives of public access. The two-month series by Penguin India. Another transmission quality, giving listeners the best average Indian, as India got ready for won Prakash Kardaley Memorial breakthrough 12-part series done in radio-listening experience in Mumbai. Lok Sabha elections. It was an Award for Civic Journalism. Both Mumbai edition, 'Small Ideas, Big Roping in some of the best on-air talents did instant success and was written these awards are a reflection of Changes' focused on daring, dogged enhance the station's appeal. about in media journals and columns HT Media's rising standards and and ambitious young entrepreneurs Bengaluru station also changed its as the kind of journalism needed.