CORPORATE OVERVIEW Building Driving scale. value. Print Digital Jagran Prakashan Limited Annual Report 2015-16 ANNUAL REPORT 2015-16 1 Forward-looking statements 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 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 statements, whether as a result of new information, future events or otherwise. READ INSIDE CORPORATE STATUTORY FINANCIAL OVERVIEW REPORTS STATEMENTS 02 A Mandate to Empower 20 Directors’ Report STANDALONE 04 CMD’s Insight 49 Report on Corporate 90 Independent Auditor’s Report 06 Reinforcing an Exciting Brand Governance 96 Balance Sheet 07 Rewards of Unrivalled 75 Management Discussion 97 Statement of Profit and Loss & Analysis Report Leadership and Focus on 98 Cash Flow Statement Profitable Growth 100 Notes 08 Print Leadership 12 Digital Dynamism CONSOLIDATED 14 Radio Foray 146 Independent Auditor’s Report 16 Out-of-Home (OOH) 150 Balance Sheet Opportunities 151 Statement of Profit and Loss 16 Activation Initiatives 152 Cash Flow Statement 17 Community Initiatives 154 Notes 18 Awards and Accolades 19 Corporate Information 202 Statement of subsidiaries and associates BRAND UNIVERSE CORPORATE OVERVIEW The world today looks up to India for inspiration. The country is witnessing sweeping transformation across all sectors, mainstreaming a large proportion of the population with unprecedented economic and social empowerment. Political and economic stability, higher education, During the year, we reinforced our leadership position rising disposable income, greater social and digital in print, radio and digital. awareness are enabling the country to challenge the status quo and think afresh. India has a new We offered differentiated content for both urban and narrative to share with the world; and the media rural readers. and communications industry articulates the vision unequivocally. We focused more on hyper localisation to touch more lives. At Jagran, we are happy to contribute to India’s progress and be the trusted agent of change. We are part of the We put in place strategies to grow the radio business, country’s leading Media and Communications Group, our recent foray. with leadership in Print, Digital, Radio, Out-of-Home (OOH) and Activation. Spanning a vast spectrum of media and communications, our brand is trusted by We are building scale and driving value for all those millions of people for information and insight on issues who have a stake in our progress and the prosperity of that are relevant to their lives. the nation. We are growing across the board; and FY 2015-16 saw us expanding our reach and impact across diverse audiences. ANNUAL REPORT 2015-16 1 Building Scale. Driving Value. A Mandate to Empower At Jagran Prakashan Limited (Jagran), we are building scale, widening reach and enhancing value for stakeholders consistently; taking forward the vision of our founder, freedom fighter Late Shri Puran Chandra Gupta. For over seven decades, we have meticulously created a brand that symbolises trust. Today, we are one of India's leading media and communications conglomerates, empowering people across the social spectrum, and transforming lives. VISION Just like the morning sun that dispels darkness and brings warmth to the world, the vision of Jagran is to transform lives through enlightening and enriching experiences. Our media Unrivalled Huge audience platforms leadership base PRINT, RADIO, DIGITAL, OUT- DAINIK JAGRAN HAS REINFORCED JAGRAN GROUP REACHES 100 OF-HOME ADVERTISING AND ITS STATUS AS INDIA’S LARGEST MILLION+ INDIAN AUDIENCES ACTIVATION READ DAILY SINCE LAST 13 YEARS Print Radio Digital prominence prominence prominence WE HAVE 10 PUBLICATION WE HAVE OVER 45 MILLION# WE ENJOY OVER 40 MILLION^ BRANDS WITH A READER BASE LISTENERS WITH FOCUS ON SEC MONTHLY AVERAGE UNIQUE OF OVER 68 MILLION*, WHICH AB SEGMENT VISITORS AND 343 MILLION^ IS CONSISTENTLY GROWING MONTHLY AVERAGE PAGE VIEWS ACROSS OUR DIGITAL PROPERTIES Extensive Multi- Industry offering lingual recognition WE OFFER MORE THAN 22 KEY WE OPERATE IN 9 DIFFERENT WE HAVE WON OVER 165 NATIONAL PRODUCT AND SERVICE BRANDS LANGUAGES AND INTERNATIONAL AWARDS IN THE LAST FIVE YEARS *IRS 2012 Q4 | #A-Z Research | ^Google Analytics June 2016 EQUITY SHARE CREDIBLE INFORMATION RATING BSE code: 532705 CRISIL has reaffirmed our ratings: NSE code: JAGRAN Long-term ratings: AA+/(stable) Share price: ` 160.30 per share Short-term ratings: A1+ (as on 31st March 2016) Market capitalisation: ` 5,240.40 crores (as on 31st March 2016) 2 JAGRAN PRAKASHAN LIMITED CORPORATE OVERVIEW JAGRAN EMPOWERS INDIA PRINT 1 JammuJammu & Kashmir 8 Bihar 2 HimachalHimachal PradeshPradesh 9 Jharkhand 3 Punjab 1010 West Bengal 4 UttUttarakhandarakhand 1111 Madhya Pradesh 1 5 HHaryanaaryana 1122 Chatttisgarh 6 DelhDelhii 1133 Mumbai 7 UttarUttar PradeshPradesh 2 23 3 24 4 5 8 7 6 3 36 29 7 35 25 34 38 27 39 2 8 28 37 26 9 11 4 9 10 10 6 5 16 12 21 13 12 13 15 14 17 18 19 30 20 22 1 10 PRINT PUBLICATIONS 11 31 32 RADIORADIO 33 9 1 VizagVizag 2 PPatnaatna DIGITAL MEDIA 3 Delhi PORTALS 4 Ahmedabad 16 Nagpur 28 Kota 5 Surat 17 Nanded Waghala 29 Bikaner 6 Vadodara 18 Pune 30 Hyderabad 7 Hissar 19 Solapur 31 Chennai 8 Karnal 20 Sangli 32 Coimbatore 9 Ranchi 21 Nasik 33 Madurai 10 Jamshedpur 22 Kolhapur 34 Lucknow 11 Bengaluru 23 Jalandhar 35 Agra 12 Jalgaon 24 Patiala 36 Bareilly 39 13 Akola 25 Jaipur 37 Varanasi RADIO STATIONS* 14 Ahmednagar 26 Udaipur 38 Gorakhpur 15 Mumbai 27 Ajmer 39 Kanpur * Includes 11 stations acquired in Phase III auctions and Radio Mantra stations ANNUAL REPORT 2015-16 3 Building Scale. Driving Value. CMD’s Insightght Dear Shareholders, The year 2015-16 was a milestone We have built and acquired businesses and brands that year in your Company’s history. In enjoy the trust of millions across India in Print, Radio this landmark year, your Company and Digital. Our flagship brand Dainik Jagran is India’s crossed ` 2,000 crores in turnover, most widely read newspaper and has been enjoying reached an operating profit of this status since 2003. Similarly, Radio City is one of the leading brands in the FM industry with a presence nearly ` 600 crores and turned across the country whereas Inquilab, our offering in around some of its loss making Urdu is the largest read Urdu newspaper in the country. businesses. The acquisition of one of the largest and most respected As your Company grows from strength to strength FM brands in the country, through its stated philosophy of profitable and Radio City was also completed sustainable growth, it will immensely benefit from the tailwinds a buoyant economy can provide. during this year, adding yet another marquee brand to It gives me immense pride to realise that India is well your Company’s portfolio of on its way in becoming a global superpower. We are no exceptional media businesses. longer a developing country known for what we do not have, but for what we have to offer to the world. This ability of ours coupled with our foreign policy makes us a formidable voice and contender at every global forum whether it is the membership of NSG or global trade or art of living. For any country to claim that it is truly evolving in social, economic and civic spheres; it is critical that economic activity, which shifts money from one hand to another and ensures inclusive growth, is the key. India’s consistent and superlative economic performance is the only positive news on the economic front in an otherwise gloomy atmosphere across the globe. Economic growth in India is therefore imperative not only for us but also for the world at large, to keep the hopes of a brighter and happier future alive. In line with my expectations, the Indian economy outperformed the world economy in the year gone by and I am confident that it would continue to do so even in future. My optimism is of course based on the rock solid foundation of strong economic fundamentals and our political will to deliver on the promise of exceptional development and welfare of all our people. 4 JAGRAN PRAKASHAN LIMITED CORPORATE OVERVIEW As your Company grows from strength to strength “ through its stated philosophy of profitable and “ sustainable growth, it will immensely benefit from the tailwinds a buoyant economy can provide. The Media and Entertainment industry is an integral social impact through initiatives across health, part of the overall economy and its direct correlation hygiene and sanitation, sustainable livelihood to the economy is empirically established. It gets an and education. Jagran Pehel partners global additional boost if consumer sentiments are upbeat agencies, governments and corporates to co-drive and people are assured about future inflow of income. community initiatives. This industry also experiences quick and fast paced growth once per capita disposable income reaches Our people have always been the Company’s key level where discretionary spends become affordable by driver of progress; and even as I share my thoughts, majority of households.