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TV18 Broadcast Ltd.

BSE: 532800 Sector: Media
NSE: TV18BRDCST ISIN Code: INE886H01027
BSE 00:00 | 11 Aug 37.00 -0.15
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NSE 00:00 | 11 Aug 37.05 -0.05
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OPEN 37.20
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VOLUME 570454
52-Week high 82.55
52-Week low 33.10
P/E 43.53
Mkt Cap.(Rs cr) 6,343
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 37.20
CLOSE 37.15
VOLUME 570454
52-Week high 82.55
52-Week low 33.10
P/E 43.53
Mkt Cap.(Rs cr) 6,343
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

TV18 Broadcast Ltd. (TV18BRDCST) - Director Report

Company director report

Dear Members

The Board of Directors are pleased to present the 16th Annual Report and theCompany's Audited Financial Statements for the Financial Year ended March 31 2021.

Financial Results

The Financial performance of the Company (Standalone and Consolidated) for the yearended March 31 2021 is summarised below:

Particulars

Standalone

Consolidated

2020-21 2019-20 2020-21 2019-20
Revenue from Operations 1104.18 1149.64 4497.62 5174.94
Pro3 t/(Loss) Before Interest Depreciation and Amortisation Expense and 224.36 159.88 929.86 824.17
Exceptional Items
Less: Interest 45.61 64.84 87.72 141.55
Depreciation and Amortisation Expense 55.74 58.16 138.75 165.64
Exceptional Items - 10.68 - 15.26
Pro3 t/(Loss) Before Tax 123.01 26.20 703.39 501.72
Less: Tax Expenses* 32.43 4.44 (42.32) 85.01
(* includes current tax deferred tax short/excess provision of tax relating to earlier years)
Pro3 t/(Loss) for the Year 90.58 21.76 745.71 416.71
Add: Other Comprehensive Income (0.31) (6.96) 4.51 (7.53)
Total Comprehensive Income for the Year 90.27 14.80 750.22 409.18
Less: Total Comprehensive Income attributable to Non- Controlling Interest - - 292.49 173.79
Total Comprehensive Income Attributable to Owners of the Company 90.27 14.80 457.73 235.39
Less: Appropriation (Transfer to General Reserve) - - - -
Earnings Per Share (Basic) (in 3) 0.53 0.13 2.66 1.41

Results of operations and the State of Company's a3 airs

During the year under review on standalone basis the Company recorded an operatingturnover of 3 1104.18 crore (previous year 3 1149.64 crore). Pro3 t before Tax was 3123.01 crore as against 3 26.20 crore in previous year. The consolidated revenue fromoperations was 3 4497.62 crore as against 3 5174.94 crore in previous year and Pro3 tbefore Tax on consolidated basis was 3 703.39 crore as against 3 501.72 crore in previousyear.

The Company has successfully dealt with the challenges posed by the COVID-19 pandemicand posted much improved pro3 tability in a di3 cult year. The improvement in pro3tability was a result of cost controls and concerted e3 orts to increase annuity-stylerevenue streams including subscription and syndication. The connect of Company's diversebrands with consumers had grown during the year under review. In view of the accumulatedlosses the Company does not propose to transfer any amount to the reserves.

The outbreak of COVID-19 pandemic globally and in India is causing signi3 cantdisturbance and slowdown of economic activity. In assessing the recoverability ofCompany's assets such as Goodwill Financial Assets and Non-Financial Assets the Companyhas considered internal and external information. The Company has evaluated impact of thispandemic on it's business operations and based on it's review and current indicators offuture economic conditions there is no signi3 cant impact on it's standalone Financialresults and the Company expects to recover the carrying amount of all it's assets.

Dividend

In view of the accumulated losses the Board of Directors have not recommended anydividend for the year under review.

The Dividend Distribution Policy of the Company is annexed as Annexure I to thisReport and the same is put up on the Company's website and can be accessed athttps://www.nw18. com/reports/reportstv18/Notices%20Events/Other%20Notices/Dividend%20Distribution%20Policy.pdf.

Deposits

The Company has discontinued accepting fresh 3 xed deposits or renewing any depositsw.e.f. April 1 2014. The Company has repaid all 3 xed deposits and interest thereon.However as on March 31 2021 deposits and interest thereon aggregating to 3 55 lakhremained unclaimed.

Material changes from the end of the Financial Year till the date of this Report

There have been no material changes and commitments a3 ecting the Financial position ofthe Company between the end of the Financial Year and date of this Report.

Scheme of Amalgamation and Arrangement

The Board of D irectors of the Company at its meeting held on February 17 2020 hadapproved the Composite Scheme of Amalgamation and Arrangement between the Company DenNetworks Limited Hathway Cable and Datacom Limited Network18 Media & InvestmentsLimited Media18 Distribution Services Limited Web18 Digital Services Limited andDigital18 Media Limited and their respective Shareholders and Creditors("Scheme").

In accordance with provisions of Regulation 37 of the Securities and Exchange Board ofIndia ("SEBI") (Listing Obligations and Disclosure Requirements) Regulations2015 the Scheme was 3 led with both BSE Limited and National Stock Exchange of IndiaLimited for obtaining no-objection letter from them.

The stock exchanges had returned the Scheme stating that the Company may apply to thestock exchanges once the Scheme is in compliance with SEBI circulars / SEBI Regulations.This pertained to the compliance by Hathway Cable and Datacom Limited and Den NetworksLimited of the Minimum Public Shareholding requirement.

Considering that more than a year has passed from the time the Board of the Companyconsidered the Scheme the Board decided not to proceed with the arrangement envisaged inthe Scheme.

Management Discussion and Analysis Report

Management Discussion and Analysis Report for the year under review as stipulatedunder the Securities and Exchange Board of India (Listing Obligations and DisclosureRequirements) Regulations 2015 ("Listing Regulations") is presented in aseparate section forming part of the Annual Report.

Credit Rating

The Company has obtained credit rating for its Borrowing Programme viz.Long-term/Short-term Fund based/Non-fund based Facility limits and Commercial PaperProgramme from CARE Ratings Limited ICRA Limited and India Ratings & Research PrivateLimited. The details of Credit Ratings are disclosed in the Corporate Governance Reportwhich forms part of the Annual Report.

Consolidated Financial Statement

In accordance with the provisions of the Companies Act 2013 ("the Act") andListing Regulations read with lnd AS 110-Consolidated Financial Statements lnd AS28-lnvestments in Associates and lnd AS 31-lnterests in Joint Ventures the AuditedConsolidated Financial Statement forms part of the Annual Report.

Subsidiaries/Joint Ventures/Associate Companies

The development in business operations/performance of the major Subsidiaries/ JointVentures / Associate Companies forms part of the Management Discussion and AnalysisReport.

A statement providing details of performance and salient features of FinancialStatements of Subsidiaries /Joint Ventures/Associate Companies as per Section 129(3) ofthe Act is provided as Annexure to the Consolidated Financial Statement and therefore notrepeated in this report to avoid duplication.

The audited Financial Statement including the Consolidated Financial Statement of theCompany and all other documents required to be attached thereto are put up on theCompany's website and can be accessed at https://www.nw18.com/ annualReport#scrollHere.The Financial Statement of the subsidiaries of the Company are also put up on theCompany's website and can be accessed at https://www.nw18.com/3 nance-subsidiary.

The Company has formulated a Policy for determining Material Subsidiaries and the sameis available on the website of the Company and can be accessed at https://www.nw18.com/reports/reportstv18/Policies/TV18-PolicyforDeterminingMaterial Subsidiaries.pdf.

Secretarial Standards

The Company has followed applicable Secretarial Standards i.e. SS-1 and SS-2 relatingto "Meetings of the Board of Directors" and "General Meetings"respectively.

Directors' Responsibility Statement

Pursuant to the requirement under Section 134 of the Act with respect to Directors'Responsibility Statement it is hereby con3 rmed that:

I. in the preparation of the annual accounts for the Financial Year ended March 312021 the applicable Accounting Standards read with the requirements set out underSchedule Ill to the Act have been followed and there are no material departures from thesame;

II. the Directors have selected such accounting policies and applied them consistentlyand made judgements and estimates that are reasonable and prudent so as to give a true andfair view of the state of a3 airs of the Company as at March 31 2021 and of the pro3 t ofthe Company for the year ended on that date;

III. the Directors have taken proper and su3 cient care for the maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting fraud and other irregularities;

IV. the Directors have prepared the annual accounts of the Company for the Financialyear ended March 31 2021 on a ‘going concern basis';

V. the Directors have laid down internal Financial controls to be followed by theCompany and that such internal Financial controls are adequate and were operating e3ectively; and

VI. the Directors have devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and operating e3 ectively.

Corporate Governance

The Company is committed to maintain the highest standards of Corporate Governance andadhere to the Corporate Governance requirements set out by SEBI.

The Corporate Governance Report of the Company in pursuance of the Listing Regulationsforms part of the Annual Report. Certi3 cate from a Practicing Company Secretary con3rming compliance with the conditions of Corporate Governance is attached to the CorporateGovernance Report.

Business Responsibility Report

The Business Responsibility Report as stipulated under the Listing Regulationsdescribing initiatives taken by the Company from an environmental social and governanceperspective is attached as part of the Annual Report. This report inter-aliacontains initiative w.r.t. stakeholder relationship customer relationshipsustainability health and safety.

Contracts or Arrangements with Related Parties3

All contracts / arrangements / transactions entered by the Company during the FinancialYear with related parties were in its ordinary course of business and on an arm's lengthbasis. During the year the Company had not entered into any contract / arrangement /transaction with related parties which could be considered material in accordance with thepolicy of the Company on materiality of related party transactions or which is required tobe reported in Form No. AOC-2 in terms of Section 134(3)(h) read with Section 188 of theAct and Rule 8(2) of the Companies (Accounts) Rules 2014.

The Policy on Materiality of Related Party Transactions and on Dealing with RelatedParty Transactions is put up on the Company's website and can be accessed athttps://www.nw18. com/reports/reportstv18/Policies/TV18-PolicyonMaterialityofRPTanddealingwithRPTtransactions.pdf.

There were no materially signi3 cant related party transactions which could havepotential con3 ict with the interests of the Company at large. Members may refer to Noteno. 36 to the Standalone Financial statement which sets out related party disclosurespursuant to Ind AS.

Corporate Social Responsibility

The Corporate Social Responsibility ("CSR") Committee's prime responsibilityis to assist the Board in discharging its social responsibilities by way of formulatingand monitoring implementation of the objectives set out in the ‘Corporate SocialResponsibility Policy' ("CSR Policy"). The CSR Policy of the Company inter-aliacovers CSR vision and objective and also provides for governance implementationmonitoring and reporting framework. There has been no change in the policy during theyear.

The CSR policy of the Company can be accessed at https://www.nw18.com/reports/reportstv18/Policies/Corporate%20Social%20Responsibility%20Policy_1.pdf.

In terms of Company's CSR objectives and policy the focus areas of engagement are asunder:

• Addressing identi3 ed needs of the unprivileged through initiatives directedtowards improving livelihood alleviating poverty promoting education empowermentthrough vocational skills and promoting health and well-being.

• Preserve protect and promote art culture and heritage.

• Ensuring environmental sustainability ecological balance and protection of 3ora and fauna.

The Company would also undertake other need based initiatives in compliance withSchedule VII to the Act.

During the year under review the Company has spent 3 1.32 crore (2% of the average netpro3 t of last three Financial years) in the areas of promoting education. The AnnualReport on CSR activities as stipulated under the Companies (Corporate SocialResponsibility Policy) Rules 2014 is annexed herewith and marked as Annexure II tothis Report.

Risk Management

The Company has an elaborate Risk Management Framework which is designed to enablerisks to be identi3 ed assessed and mitigated appropriately. The Board of Directors ofthe Company has constituted Risk Management Committee which has inter-alia beenentrusted with the responsibility of Overseeing implementation/ Monitoring of RiskManagement Plan and Policy; and continually obtaining reasonable assurance from managementthat all known and emerging risks have been identi3 ed and mitigated or managed.

Further details on Risk Management activities are covered in Management Discussion andAnalysis section which forms part of the Annual Report.

Internal Financial Controls

The Company has adequate systems of internal Financial controls to safeguard andprotect the Company from loss unauthorised use or disposition of its assets. All thetransactions are properly authorised recorded and reported to the Management. The Companyis following the applicable Accounting Standards for properly maintaining the books ofaccounts and reporting Financial Statements.

The internal Financial controls have been embedded in the business processes. Assuranceon the e3 ectiveness of internal Financial controls is obtained through managementreviews continuous monitoring by functional leaders as well as testing of the internalFinancial control systems by the Internal Auditors during the course of their audits.

The Audit Committee reviews adequacy and e3 ectiveness of Company's Internal Controlsand monitors the implementation of audit recommendations.

Directors and Key Managerial Personnel

In accordance with the provisions of the Act and the Articles of Association of theCompany Mr. P.M.S. Prasad Director retires by rotation at ensuing Annual GeneralMeeting of the Company. The Board of Directors on recommendation of the Nomination andRemuneration Committee has re-appointed Mr. Rahul Joshi as Managing Director of theCompany for a period of 3 (three) years with e3 ect from October 15 2021 as his currentterm of o3 ce is up to October 14 2021.

The Nomination and Remuneration Committee and Board of Directors have recommended abovere-appointments for the approval of the shareholders. The Company has receiveddeclarations from all the Independent Directors of the Company con3 rming that: (i) theymeet the criteria of independence as prescribed under the Act and Listing Regulations;(ii) they have registered their names in the Independent Directors' Databank; and (iii)they have complied with the Code for Independent Directors prescribed in Schedule IV tothe Act.

The Company has in place a ‘Policy for Selection of Directors and DeterminingDirectors' Independence' and ‘Remuneration Policy for Directors Key ManagerialPersonnel and Other Employees'. These policies are put up on the Company's website and canbe accessedathttps://www.nw18.com/reports/reportstv18/Policies/TV18PolicyonSelectionofDirectors&DeterminingIndependence. pdf andhttps://www.nw18.com/reports/reportstv18/Policies/TV18RemunerationPolicyforDirectorsKMPsandotheremployees. pdf.

The Policy for Selection of Directors and Determining Directors' Independence sets outguiding principles for Nomination and Remuneration Committee for identifying persons whoare quali3 ed to become directors and determining directors' independence if the personis intended to be appointed as independent director. There has been no change in thispolicy during the year under review. The Remuneration Policy for Directors Key ManagerialPersonnel and Other Employees sets out guiding principles for Nomination and RemunerationCommittee for recommending to the Board the remuneration of Directors Key ManagerialPersonnel and other employees. There has been no change in the policy during the yearunder review.

Performance Evaluation

The Company has a policy for performance evaluation of the Board Committees and otherindividual Directors (including Independent Directors) which includes criteria forperformance evaluation of Non-Executive and Executive Directors.

In accordance with the manner speci3 ed by the Nomination and Remuneration Committeethe Board carried out performance evaluation of the Board its Committees and IndividualDirectors. The Independent Directors separately carried out evaluation of ChairpersonNon-Independent Directors and Board as a whole. The performance of each Committee wasevaluated by the Board based on views received from respective Committee Members. Thereport on performance evaluation of the Individual Directors was reviewed by theChairperson of the Board and feedback was given to Directors.

Auditors & Auditors' Reports Statutory Auditors

S.R. Batliboi & Associates LLP Chartered Accountants (ICAI Firm Regn. No.101049W/E300004) were appointed as Statutory Auditors of the Company for a term of 5 (3ve) consecutive years at the Annual General Meeting held on September 25 2017. TheCompany has received con3 rmation from them to the e3 ect that they are not disquali3 edfrom continuing as Auditors of the Company.

The Notes on Financial Statement referred to in the Auditors' Report areself-explanatory and do not call for further comments. The Auditors' Report does notcontain any quali3 cation reservation adverse remark or disclaimer.

Cost Auditor

In accordance with the provisions of Section 148(1) of the Act read with the Companies(Cost Records and Audit) Rules 2014 the Company has maintained cost accounts andrecords. The Board had appointed M/s Pramod Chauhan & Associates Cost Accountants asthe Cost Auditor of the Company for conducting the audit of the cost records of theCompany for the Financial Year 2020-21. Further they have been appointed as the CostAuditor by the Board for the Financial Year 2021-22.

Secretarial Auditor

The Board had appointed M/s Chandrasekaran Associates Company Secretaries to conductthe Secretarial Audit for the Financial Year 2020-21. The Secretarial Audit Report for theFinancial Year ended March 31 2021 is annexed with this Report and marked as AnnexureIll to this Report. The Secretarial Audit Report does not contain any quali3 cationreservation adverse remark or disclaimer.

Disclosures

(i) Meetings of the Board

During the Financial Year ended on March 31 2021 5 (Five) Board meetings were held.Further details of the meetings of the Board and its Committees are given in the CorporateGovernance Report forming part of the Annual Report.

(ii) Audit Committee

The Audit Committee of the Company comprises Mr. Adil Zainulbhai (Chairman) Mr. DhruvSubodh Kaji Mr. Rajiv Krishan Luthra and Mr. P.M.S. Prasad. During the year all therecommendations made by the Audit Committee were accepted by the Board.

(iii) Corporate Social Responsibility Committee

The Corporate Social Responsibility Committee of the Company comprises Mr. AdilZainulbhai (Chairman) Mr. Dhruv Subodh Kaji and Mr. P.M.S. Prasad.

(iv) Nomination and Remuneration Committee

The Nomination and Remuneration Committee of the Company comprises Mr. Dhruv SubodhKaji (Chairman) Mr. Adil Zainulbhai Mr. Rajiv Krishan Luthra and Mr. P.M.S. Prasad.

(v) Stakeholders' Relationship Committee

The Stakeholders' Relationship Committee of the Company comprises Mr. Dhruv Subodh Kaji(Chairman) Mr. P.M.S. Prasad and Mr. Rahul Joshi.

(vi) Vigil Mechanism

The Company promotes ethical behaviour in all its business activities. Towards thisthe Company has adopted a Policy on Vigil Mechanism and Whistle Blower. The Company hasconstituted an Ethics & Compliance Task Force to process and investigate a protecteddisclosure made under the Policy. The con3 dentiality of those reporting violations ismaintained and they are not subjected to any discriminatory practice or victimisation. TheAudit Committee oversees the Vigil Mechanism. The Policy on Vigil Mechanism and WhistleBlower is available on the Company's website and can be accessed athttps://www.nw18.com/reports/reportstv18/Policies/Policy%20on%20Whistle%20Blower%20Policy-Vigil%20Machanism.pdf.

(vii) Prevention of Sexual Harassment at Workplace

The Company has complied with the provisions relating to the constitution of InternalComplaints Committee as speci3 ed under Sexual Harassment of Women at Workplace(Prevention Prohibition and Redressal) Act 2013. The other disclosures under this Actare given in the Business Responsibility Report which forms part of the Annual Report.

(viii) Particulars of Loans Given Investments Made Guarantees Given and SecuritiesProvided

Particulars of loans given Investments made Guarantees given and Securities providedby the Company along with the purpose for which the loan or guarantee or security isproposed to be utilised by the recipient are provided in the Standalone FinancialStatement. Members may refer to Note nos. 5 12 36 and 40 to the Standalone FinancialStatement.

(ix) Conservation of Energy Technology Absorption and Foreign Exchange Earnings andOutgo

Pursuant to Section 134(3)(m) of the Act read with Rule 8(3) of the Companies(Accounts) Rules 2014 relevant disclosures are given below:

a) Conservation of Energy

The Company is not an energy intensive unit hence alternate source of energy may notbe feasible. However regular e3 orts are made to conserve the energy. The Companyevaluates the possibilities and various alternatives to reduce energy consumption.Further use of low energy consuming LED lightings is being encouraged.

b) Technology Absorption

The Company is conscious of implementation of latest technologies in key working areas.Technology is ever changing and employees of the Company are made aware of the latestworking techniques and technologies through workshops group e-mails and discussionsessions for optimum utilisation of available resources and to improve operational e3ciency. The Company is not engaged in manufacturing activities. Therefore certaindisclosures on technology absorption and conservation of energy etc. are not applicable.

During the year there has been no expenditure on Research and Development.

c) Foreign Exchange Earnings and Outgo

During the year under review the Company earned 3 35 crore of foreign exchange andused 3 59 crore of foreign exchange both on actual basis.

(x) Annual Return

The Annual Return of the Company as on March 31 2021 is available on the Company'swebsite and can be accessed at:3 https://www.nw18.com/reports/reportstv18/Notices%20Events/Annual%20Return%20-%20AGM%20 2021.pdf.

(xi) Particulars of Employees and Related Information

In terms of the provisions of Section 197(12) of the Act read with Rules 5(2) and 5(3)of the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 astatement showing the names of the top ten employees in terms of remuneration drawn andnames and other particulars of the employees drawing remuneration in excess of the limitsset out in the said rules forms part of this Report.

Disclosures pertaining to remuneration and other details as required under Section197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014 also forms part of this report.

Having regard to the provisions of the second proviso to Section 136(1) of the Act andas advised the Annual Report excluding the aforesaid information is being sent to theMembers of the Company. Any Member interested in obtaining such information may write tothe Company Secretary to e-mail id investors.tv18@nw18.com.

General

During the year under review:

1. The Company had not issued any equity shares with di3 erential rights as to dividendor voting or otherwise.

2. The Company had not issued any shares (including sweat equity shares) to directorsor employees of the Company under any scheme. Voting rights on the shares issued toemployees in earlier years under Employees' Stock Option Scheme of the Company are eitherexercised by them directly or through their appointed proxy.

3. The Company does not have any scheme of provision of money for the purchase of itsown shares by employees or by trustees for the bene3 t of employees.

4. No signi3 cant and/or material order was passed by any Regulator/ Court/Tribunalwhich impacts the going concern status of the Company or its future operations.

5. No fraud has been reported by Auditors to the Audit Committee or the Board.

6. There is no application made / proceeding pending under the Insolvency andBankruptcy Code 2016.

7. There was no instance of one-time settlement with any Bank or Financial Institution.

8. There has been no change in the nature of business of the Company.

Acknowledgement

The Board of Directors wish to place on record its appreciation for the faith reposedin the Company and continuous support extended by all the employees members customersinvestors government and regulatory authorities bankers and various stakeholders.

For and on behalf of the Board of Directors
Date: April 20 2021 Adil Zainulbhai
Place: Mumbai Chairman

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