From the Executive Chairman
It gives me immense pleasure to communicate with you our esteemed shareholder familyabout the performance of your Company for the year and our journey going forward.
Your Company continues to strive to create value for our shareholders through a prudentmanagement of the Treasury assets and ensuring business strategies of companies in whichit has invested. We are focused towards creating long term shareholder value along withgood steady dividends. As a responsible corporate citizen it continues to carry out itsresponsibility to the society at large by supporting projects which improve the livingconditions of the underprivileged.
India continues to remain a high growth economy giving tremendous opportunities todynamic companies such as ours to diversify and grow. The fiscal year 2016-17 saw theeconomy consolidating the gains from steps taken by the Government to ensure macroeconomicstability. The year saw two major policy decisions -Demonetisation and introduction ofGoods and Service Tax (GST). Both the steps involve major structural changes and areexpected to deliver value in the long term. The smooth implementation of both initiativesis testimony to the Governments' planning and execution skills.
With respect to your Company's subsidiaries' operations it remains focused on theMedia and Entertainment Industry. I am happy to inform you that with the necessaryapprovals having been received from the National Company Law Tribunal (NCLT) the Headend-in- the- Sky ("HITS") business of Grant Investrade Limited a wholly ownedsubsidiary of your Company has been merged with the Cable TV business of IndusInd Media& Communications Limited ("IMCL") another subsidiary of your Company. Thisarrangement will enhance shareholders value by consolidating the Digital Mediadistribution businesses and will help to rationalise the group structure by optimizing theresources and integrating operational synergies both in revenue and costs. The combinedentity will also be able to venture and grow in the newer areas and many upcoming linkeddigital technology value adds that would be relevant for this business and same set ofcustomers.
With the successful leveraging of both the Cable and the HITS delivery platforms IMCLtoday has:
a presence in all the States and Union Territories of the Country mostdistricts and more than 1000 locations addressing far flung cities towns and villageswhere Cable TV has had no presence in the past;
over 750 cities covered in all areas right from Kargil in Kashmir in theNorth to Andaman and Nicobar in the deep south and right up to North East border areas ofArunachal and Meghalaya;
a subscriber base of over 4 million;
close to 97% of its customers on prepaid payment mode;
introduced a Managed Services vertical to cater to such parties who want touse the HITS infrastructure;
won an award from a cable trade national body for being the firstMulti-System Operator (MSO) to have introduced prepaid payment system;
been delivering up to 300 Standard and High Definition channels on InDigital and 525 channels on the HITS platform.
The Indian Media and Entertainment industry on the back of strong economic fundamentalsand steady growth in domestic consumption coupled with growing contribution of ruralmarkets across key segments was able to sustain a stable growth in 2016.
Several factors like growing rural demand increase in digital access and the expectedculmination of digitization process will contribute to the positive long-term outlook forthe Media and Entertainment industry.
During the year the total Consolidated income of the Company increased to Rs 826Crores as against Rs 679.98 Crores during the previous year 2015-16 and the totalStandalone income of the Company was at Rs 203.39 Crores as against Rs 332.48 Croresduring the previous year 2015-16.
Corporate Social Responsibility
Primary Health Care Centers
During the financial year 2014-15 the Company in consonance with its CSR objective topromote community healthcare contributed to implement the CSR project of"Up-gradation of Primary Health Centre" at village Nandgaon Taluka JawharPalghar District Maharashtra with a view to improve quality availability and efficiencyof healthcare services in tribal areas.
During the financial year 2015-16 for providing access to basic healthcarefacilitation to poor and under privileged people the Company made contributions toHinduja Foundation for its Primary Healthcare Project for Up-gradation of Primary HealthCenters and Sub-Centers in Jawahar Taluka Palghar District Maharashtra.
The said contributions made by the Company was utilized by Hinduja Foundation duringthe year under review to develop inter alia the Primary Health Centres (PHCs) oldand new toilet blocks maternity wards so as to provide medical treatments to thepopulation residing in the Jawahar Taluka Maharashtra.
With this the Company's CSR objective to promote community healthcare by way ofup-gradation of PHCs in Jawahar Taluka was satisfactorily attained.
During the financial year 2016-17 the Company has contributed Rs 60 Lakhs to HindujaFoundation towards Rural Development in Jawahar Taluka Maharashtra for implementing aproject on livelihood sanitation and providing drinking water.
Increasing long term shareholders' value continues to be the prime objective and yourCompany will keep evaluating emerging opportunities to invest and grow.
I would like to place on record my sincere appreciation of your unstinted support tothe Company. I would also like to thank the Directors Management and Employees for thegood performance registered. Also my thanks to our Bankers Auditors and Advisors fortheir help and guidance during the year to maintain the highest standards of corporategovernance a top priority for the group.
Ashok P. Hinduja
Date: August 23 2017