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Broadcast Initiatives Ltd.

BSE: 532816 Sector: Media
NSE: BROADCAST ISIN Code: INE698H01018
BSE LIVE 15:01 | 07 Nov 3.15 0.15
(5.00%)
OPEN

2.85

HIGH

3.15

LOW

2.85

NSE LIVE 15:07 | 14 Oct Stock Is Not Traded.
OPEN 2.85
PREVIOUS CLOSE 3.00
VOLUME 158
52-Week high 5.12
52-Week low 2.50
P/E
Mkt Cap.(Rs cr) 7.97
Buy Price 0.00
Buy Qty 0.00
Sell Price 3.15
Sell Qty 3142.00
OPEN 2.85
CLOSE 3.00
VOLUME 158
52-Week high 5.12
52-Week low 2.50
P/E
Mkt Cap.(Rs cr) 7.97
Buy Price 0.00
Buy Qty 0.00
Sell Price 3.15
Sell Qty 3142.00

Broadcast Initiatives Ltd. (BROADCAST) - Director Report

Company director report

BROADCAST INITIATIVES LIMITED ANNUAL REPORT 2011-2012 DIRECTOR'S REPORT To, The Members of Broadcast Initiatives Limited. The Directors of your Company are pleased to present the Eighth Annual Report together with the statement of audited accounts for the financial year ended March 31,2012. 1. FINANCIAL HIGHLIGHTS (Rs. in '000s) Particulars Financial Year ended Financial Year ended Match 31,2012 March 31,2011 Net Sales/ 1,30,106 96,121 income from operations Other Income 1,199 5,472 Total Income 1,31,305 1,01,593 Total Expenditure 6,81,871 6,70,925 Gross Profit/(Loss) before exceptional and extraordinary (5,50,566) (5,69,332) items and tax Exceptional Items 7,00,232 - Profit before extraordinary items and tax 1,49,667 (5,69,332) Extraordinary Items - 41,523 Profit/(Loss) before 1,49,667 (5,27,808) taxation Deferred Tax (8,299) 1,045 Profit/(Loss) after tax 1,57,966 (5,28,853) 2. TURNOVER AND PROFITS For the year ended March 31,2012, the Company earned total revenue of Rs.1,31,305 thousand. An increase of 29% as against previous Rs. 1,01,593 thousand. A detailed discussion on the business performance is presented in the Management and Analysis section of the Annual Report. 3. DIVIDEND In view of the accumulated losses in past several years, Directors do not to recommend payment of any dividend during the year. 4. MANAGEMENT DISCUSSION AND ANALYSIS In accordance with the requirements of the listing agreement, the detailed review of the operations, performance and future outlook of the Company and its business is given in the Management Discussion and Analysis Report, forming part of the Annual Report. 5. SUBSIDIARY COMPANIES During the year under review, our Company did not have any subsidiary. 6. DEPOSITS Your Company has not accepted any Fixed Deposits from the public and is therefore not required to furnish information in respect of outstanding deposits under Non Banking Non-financial Companies (Reserve Bank) Directions, 1966 and Companies (Acceptance of Deposits) Rules, 1975. 7. (a) CHANGE IN REGISTERED OFFICE OF THE COMPANY: During the year, there is no change in the registered office of the Company. (b) SHARE CAPITAL: During the year, there is no change in Share Capital of the Company. 8. RIGHTS ISSUE Your Company had proposed to issue 2,02,51,200 Equity Shares of the face value 10 each in the ratio of 8 Equity Shares for every 10 Equity Shares by way of rights issue to the existing shareholders of the company. Accordingly Company had filed Draft Letter of Offer with Bombay Stock Exchange Limited (BSE), National Stock Exchange of India Limited (NSE) and Securities Exchange Board of India (SEBI) and had also received initial approvals (NOC) of NSE, BSE. However, considering the present market scenario, the Rights Issue may not fetch appropriate valuation and the Company may not receive subscription other than form the promoter members. Your Directors therefore proposed to not pursue the Rights Issue. Therefore, the Company has withdrawn Draft Letter of Offer filed with the Securities Exchange Board of India (SEBI). 9. DIRECTORS In accordance with the provisions of the Companies Act, 1956 and the Articles of Association of the Company, at the 8th Annual General Meeting, Shri. Waryam Singh and Mr. Deepak Sharma will retire by rotation and being eligible, offers themselves for re-appointment. The above re-appointment form part of the Notice of the forthcoming 8th Annual General Meeting and the respective resolutions are recommended for your approval. Profile of the Director, as required under Clauses 49 of the Listing Agreement, is part of the explanatory statement to the Notice of the 8* Annual General Meeting. Mr. Gautam Adhikari and Mr. Markand Adhikari ceased to be Directors with effect from 9th September 2011 and Mr. Ashok Kumar Gupta ceased to be Managing Director and Director with effect form 17th September 2011 and the Board places its appreciation for their valuable contribution towards the affairs of the Company. Mr. Bua Singh ceased to be Director with effect form 3rd March. 2012. However, considering the Company's requirement for his services, he was re- appointed as Director of the Company on 6th March, 2012 and holds office as Additional Director until the forthcoming Annual General Meeting. Accordingly, his candidature for appointment as a Director is included in the Notice. RECONSTITUTION OF FINANCE COMMITTEE: Consequent upon resignation of Mr. Ashok Kumar Gupta from the office of Director and resultant resignation from the Finance Committee of the Company, the Finance Committee was reconstituted on 26th December, 2011 as follows: Name of the Director Designation Mr. Waryam Singh Chairman Mr. Bua Singh Member RECONSTITUTION OF SHAREHOLDER'S/ INVESTORS GRIEVANCES - CUM - SHARE TRANSFER COMMITTEE OF THE COMPANY: Consequent upon resignation of Mr. Ashok Kumar Gupta form the office of Director and resultant resignation form the Shareholder's / Investors grievances - cum - Share Transfer Committee of the Company, the Shareholder's / Investors grievances - cum - Share Transfer Committee was reconstituted on 26th December, 2011 as follows: Name of the Director Designation Mr.M.S. Kapur Chairman Mr. Bua Singh Member Mr. Deepak Sharma Member 10. DIRECTOR'S RESPONSIBILITY STATEMENT As stipulated in Section 217(2AA) of the Companies Act, 1956, your Directors' subscribe to Directors' Responsibility Statement and confirm that: 1. in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures; 2. they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year 2011-12 and of the profit of the company for that period; 3. they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets the assets of the company and for preventing and detecting fraud and other irregularities; and 4. the annual accounts have been prepared on a going concern basis. 11. APPOINTMENT OF COMPANY SECRETARY During the year, Mr. Balakrishna Swamy was appointed as Company Secretary and Compliance Officer of the Company with effect from 23rd November, 2011 in place of Ms. Akshada Kaslay. 12. HUMAN RESOURCE Your Directors would like to place on record their deep appreciation of all employees for rendering quality services to every constituent of the Company be its viewers, producers regulatory agencies, creditors or shareholders. The unstinting efforts of the employees have enabled your company to forefront of media and entertainment Business. 13. PARTICULARS OF EMPLOYEES Ashok Jayesh & Associates, Chartered Accountants, having its office at 501, HDIL Towers, Anant Kanekar Marg and Bandra (East), Mumbai - 400051 will retire at the ensuing Annual General Meeting of the Company. 15. CORPORATE GOVERNANCE In accordance with Clause 49 of the listing agreement, your Company has ensured continued compliance of Corporate Governance requirements during the financial year. Your Company lays strong emphasis on transparency, disclosure and independent supervision to increase various stakeholder's value. The repot on Corporate Governance for the financial year 2011-12 is given as separate section titled 'Report on Corporate Governance' and the Auditors' Certificate on compliance with Corporate Governance requirements by the Company is attached to the Corporate Governance Report. 16. LISTING AT STOCK EXCHANGE The equity shares of the Company continue to be listed on the Bombay Stock Exchange Limited (BSE) and the National Stock Exchange of India Limited (NSE). The Company has paid the applicable listing fees to the above stock exchanges up to date. 17. INTERNAL CONTROL SYSTEM The Company has in place appropriate internal control systems, commensurate with its size and nature of operations. 18. PARTICULARS REGARDING CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION Your Company is into the business of Broadcasting of News & Current Affairs and General Entertainment Television Channels. Since these activities do not involve any manufacturing activity, most information required to be provided in terms of Section 217(l)(e) of the Companies Act, 1956 read with Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988, regarding conservation of energy and technology absorption are not applicable. However, your Company, being a service provider, require minimal energy consumption and energy consumption and every endeavor 19. FOREIGN EXCHANGE EARNINGS AND OUTGO During the year, your Company has incurred expenditure in foreign currency to the extent of Rs. 1974 (in '000) as against Rs. 8221 (in '000) in the previous financial year. 20. ACKNOWLEDGMENTS Your Directors wish to place on record their appreciation and sincere gratitude to the various Departments of the Central and State Government, Company's Bankers, clients, media and business constituents for their valuable assistance and support. The Directors also acknowledge the continued support received from investors and shareholders and the confidence reposed by them. The Directors place on record their appreciation for the sincere and dedicated services rendered by all the employees of the Company. on behalf of the Board For Broadcast Initiatives Limited Director Place: Mumbai Date : 10th May,2012 ANNEXURE TO THE DIRECTORS' REPORT MANAGEMENT'S DISCUSSION AND ANALYSIS REPORT I. INDUSTRY SCENARIO The Indian Media and Entertainment industry registered a growth of around 12% during the year 2011. The said progress in the industry is mainly on account of strong development in the non metro developing and small cities across the country. Further there has been continued growth in the regional media as well. There had been challenges to the Indian economy and consequently to the media and entertainment industry as well. As per the FICCI - KPMG Report, the industry is expected to register CAGR of around 15% to touch INR 1,457 billion by 2016. II. MEDIA & BROADCASTING INDUSTRY OVERVIEW : The Indian Media and Entertainment Industry is growing at a good pace, particularly in the Tier II & Tier III towns of the country reaching to large number of regional masses. The television industry is reaching the parts of the country with large TV market. Cable and Satellite (C&S) have already penetrated with the soaring growth shown by the DTH platform. Many subscribers in the small cities are adopting the satellite based television services through DTH. New technologies like High Definition (HD), STBs (Set Top Boxes) with inbuilt recorders and delivery platforms like mobiles are rapidly evolving, creating further opportunities for innovation and growth. The television and broadcasting industry has grown tremendously over the last two decades, with an average growth rate in double digits Viewers are able to access niche content easily on DTH platform even in smaller markets. The television industry is expected to grow at a CAGR of over 17% over 2011-16 to reach INR 735 billion by 2016. The TV industry is likely to keep growing as the penetration in Indian market is still around 60 % of total households. India is one of the largest media consuming markets in the world; however, the medium has many drivers in place for growth in the years ahead. There is a great demand for satellite bandwidth with the introduction of HD channels, the HITS platform, existing DTH channel expansion plans, new channel launches, VSAT services. Sectors such as animation & VFX, digital advertising and gaming are fast developing. Further Radio is also expected to display a healthy growth rate. The digital advertising is expected to grow at CAGR of 30% by 2016. The Media & Entertainment Industry is witnessing steady pace in its growth and same will be experienced in the current financial year. III. KEY TRENDS AND INDUSTRY DRIVERS: * Growth in Digitization: Digital Technology will continue to play an instrumental role in media distribution through growth of DTH and digital cables. Digitization has enabled wider and - cost effective reach across the country. It continues to be a key growth driver for the Indian Media & Entertainment Industry. * Regionalization: Regional media consumption is expected to continue to rise in the tier 2 and tier 3 cities. Regional players have achieved scale and are now looking to go National. Geographical expansion by existing players in television, print and radio is expected to intensify competition and leading to interesting times for these industries. * Introduction of New Technology & Innovations: Over a period of time, new hi-tech gadgets have been introduced in the market. Smart Phones, PCs, Tablet PCs, Communication Devises, Gaming Devises are creating revolution in the Media usage. The consumers are increasing due to the use of the said gadgets and consequently positively impacted the distribution. With the help of new technology in the Media & Entertainment, there is a need for innovation as per the requirement of the audience. The changes in the way media is consumed are being driven by factors such as content pull from telecom service providers due to the 3G launch, emerging gaming platforms and innovation in technological devices such as tablets. Convergence of media, m-commerce and emergence of an application economy are the expected trends likely to emerge. It is becoming increasingly important for industry players to continuously innovate new formats and strategies in order to enable brand loyalty help expand the market. Availability of infrastructure and appropriately pricing content across these new media platforms are expected to be critical success factors for the Indian market. * Regulatory changes: The implementation of regulations relating to digitization for cables, copyrights for radio and introduction of 4G, Government's thrust on digitization and addressability for cable television, is expected to increase the pace of digitization leading to tremendous growth in DTH and digital cable. As the government, regulatory bodies and members of the industry actively work together, reforms that aid the development of Indian media companies will act as a catalyst to the growth of the sector. IV. PROJECTS AND EXPANSION PLANS: Keeping the constant innovative and competitive media industry in mind Live India is geared up to face the new challenges and for this purpose we are constantly upgrading ourselves in terms of manpower, content and technology. 1. Currently we have total 5 (five) OB vans available for live broadcasts from any part of the country. 2. Live India has 9 regional news bureaus equipped with latest communication system (viz. lease lines) which enabled us to receive live news feeds from these news bureaus. These bureaus are Delhi, Chandigarh, Srinagar, Bhopal, Ahmedabad, Patna, Jaipur, Kolkata, Lucknow. This year we plan to expand our news gathering base to at least three new bureaus which will enable us to broadcast anything live from these centers and also our news anchors will able to hold live discussions with our guests sitting anywhere in these news centers. This up gradation will make Live India's news gathering mechanism one of the most wide spread networks in India. We already have super bureaus in New Delhi and Mumbai with all the latest studio facilities equipped for live telecast 24 hours. 3. We are in a process of expanding and comprehensive plan is being drawn up to revamp our reach throughout the country in the regional market. 4. To enhance the reach of Liveindia, we have tied up with Apalaya TV and are in the process of identifying other such 2G/3G mobile TV service providers. 5. Live India is available on DTH platform of Dish TV, Reliance Digital TV, Airtel Digital TV and we are in talks with Videocon D2H. V. FACTS OF GROWTH OF CHANNEL & COMPARISON WITH OTHER CHANNELS IN INDUSTRY Performance of Live India Channel during the financial year 2011-12 was satisfactory. We produced certain top stories / breaking news. For reference some of the top programs/stories are as follows: * India Prime (Anna V/s Sarkar), Date: 17th August 2011 * Aarakshan with Amitabh, Date: 5th August 2011 * Evening Time, Laagan, Date: 23rd July 2011 * Anna Hazare at Live India, Date: 7th June 2011 * Baba Ram Dev in Ramlila Ground - LIVE, Date: 5th June 2011 * Prime Time Idiot Box, Date: 2nd June 2011 * Kal Aaj aur Kal, Date: 1st May 2011 * Mera vastu Mera Bhagya, Date: 30th April 2011 * Param Dham Ko Sai, Date: 24th April 2011 * Hitler, Date: 20th April 2011 * IPL-IndianPaisa League, Date: 11th April 2011 * India Prime, Date: 8thApril 2011 * India Prime - Anna Hazare movement, Date: 8th April 2011 VI. OPPORTUNITIES The Entertainment and Media Industry grows with expanding economy. The phenomenal growth in the entertainment and media sector can be attributed to economic growth, rising income levels, rise in consumer spending, technological advancements, innovation and policy initiatives taken by the Indian government. The Youth have been one of the important consumers of the Media industry. Broadcasting youth related informative and educative programs would help in the growth. The Company envisages growth due to rise in advertisement expenditure and rich content, consequently rise in viewership. VII. THREATS The dependence on few people, highly fragmented media sector and high cost of production continues to slow down the growth measures taken by the Company. Piracy, rising competition, changing Government policies, increased in labor & energy costs are the major reasons having adverse impact on the Indian Media and Entertainment industry. Your Company emphasizes on the quality of the content of the channel in order to get back the share, lost due to competition from other media channels. The turnover of the Company may have a negative impact also due to the liquidity crunch in the financial markets. Your Company has already taken a due precaution of the same and has decided to decrease the expenditure required for the production by cutting back on the avoidable expenses. VIII. INTERNAL AUDIT, CONTROL SYSTEM AND THEIR ADEQUACY Adequate systems of internal controls that commensurate with the size of operation and the nature of business of the Company have been implemented. The Company has adopted the best practices in implementing the Internal Control System to safeguard company's assets from unauthorized use or disposition, to provide constant check on cost structure, to provide adequate financial and accounting controls and implement accounting standards. It helps the Company to comply with the rules, regulations, standards and laws. IX. HUMAN RESOURCE MANAGEMENT The Company places major emphasis on providing a safe & a healthy working environment to all its employees. We encourage our employees to achieve the vision, objectives of the organization together with their own personal goals.. The field being one which requires absolute creativity, the performance of its employees is reviewed so as to provide them job enrichment opportunities. Further we endeavor to create an environment where employee can use their capabilities in support of the business. X. CAUTIONARY STATEMENTS The Management of Broadcast Initiatives Limited is responsible for the Financial information that appear in this report. It is in conformity with the accounting principles generally accepted in India and therefore may include amounts based on judgements and estimates. Statements made in the Management Discussion and Analysis Report describing the Company's objective, projections, estimates, expectations may be 'forward looking statements' within the meaning of applicable laws and regulations, based on the beliefs of the management of your Company. Such statements reflect the Company's current views with respect to the future events and are subject to risks and uncertainties. Many factors could cause the actual result to be materially different from those projected in this report, including among others, changes in the general economic and business conditions affecting demand/supply and price conditions in the segment in which the Company operates, change in business strategy, interest rates, inflation, deflation, foreign exchange rates, competition in the industry & other incidental factors.

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