Finance &
Accounting
Project
TV 18
TV18
Contents
Organization Profile
About Network 18
History of TV18
Business Strategy & Plans
SWOT Analysis
Product Profile
Environmental Analysis
Financial Analysis
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TV18
Acknowledgement
The fulfillment of any research project work is in consequence of
integrated effort of a number of people. This part of project report
has been possible only through the guidance and help of many
people. We hereby take an opportunity to express our sincere
thanks to all those for their help and guidance. We would like to
express our genuine gratitude to Mr Rahul Jain for his valuable
guidance in research and analysis throughout the project. With his
unfaltering support and direction, we have been able to complete
the 1st log of this project report.
Manika Pahwa
Puneet Khurana
Rachit Dhingra
Arushi Bansal
Akaksha Sharma
Finance & Accounting Project
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TV18
Organization Profile
Television Eighteen India Ltd is a Delhi-based media and entertainment company
which is popularly known as TV 18. TV 18 is one of the subsidiaries of Network18.
Television Eighteen India Ltd. was originally known as Television Eighteen India Private
Limited and was formed under the Companies Act, 1956.
After a resolution was passed on November 2, 1994 the company came to be known as
Television Eighteen India Limited on January 2, 1995. TV 18 is also India's fastest
growing media and entertainment company. It is one of the leading news channels in
India with an employee-strength of 3000 spread all over India in 30 bureau locations.
The company also has 4 overseas branches.
Television Eighteen India Ltd. has set up a 125,000 sq. ft. of fully unified broadcast
infrastructure that includes the state-of-the-art centers in Delhi and Mumbai. TV 18 is
the only media and entertainment company in the whole world that has collaborated
with the 2 most leading media companies. Television Eighteen India Ltd. has 2 business
news channels, 1 general news channel, and 1 network channel.
Business news channels including CNBC-TV 18 and CNBC Awaaz have collaborated
with NBC Universal – a USD 13 billion company. The general news channel owned by
the company is CNN-IBN which is in partnership with Times Warner – the world's
largest media empire. The network channel is IBN7 which is also a leading Hindi
general news channel in partnership with the Jagran Group – owner of India's largest
daily Hindi newspaper.
The main activities of the entire group of Television Eighteen India is to supply
programming content on business and entertainment channels for broadcasting
purposes. TV 18 has been growing quite rapidly since the past few years. The main
sources for the company’s revenues include the following:
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TV18
►
Sale of advertising time
►
Displaying banner ads on the portal
►
Sponsorship contracts
►
Subscription revenue
►
Program revenue
►
Content licensing
►
Online Trading
►
Equipment rental
Television Eighteen India Company is one of those rarest Indian media companies
which also have a web-strategy in its facilities. Taking this a step forward, the company
has now decided to segregate the Internet ventures into a separate company with the
aim to bring their value into limelight, explore their effectiveness, and draw in new
investments.
TV 18 is aiming high to become the best media and Entertainment Company not only in
India but also internationally. Towards this, it has already entered into collaborations
with some leading media companies abroad.
About Network 18 (Network 18 website)
Network18 is one of India's leading full play media conglomerates with interests in
television, print, internet, filmed entertainment, mobile content and allied businesses.
Through its holding in Television Eighteen India Ltd, Network18 operates India’s leading
business news television channels, CNBC-TV18 and CNBC Awaaz. It also runs one of
India’s largest Internet players - Web18, as well as one of India’s leading real time
financial information and news terminals - Newswire18. TV18 has recently expanded
into print with Infomedia18, a newly formed entity following the acquisition of Infomedia,
India's leading player in the special interest publishing and printing operations
space.TV18 has also announced collaboration with Forbes media for the launch of a
business magazine in India. Through its holding in IBN18 Broadcast Ltd (ibn18),
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TV18
Network18 operates in the general news and entertainment space with leading general
news channels CNN-IBN and IBN7 and has launched IBN Lokmat, a Marathi news
channel in partnership with the Lokmat group. IBN18 also operates a joint venture with
Viacom, called Viacom18 which houses the MTV, VH1 and Nickelodeon channels in
India - as also Studio18, the Group’s filmed entertainment operation and has launched
‘Colors’, a Hindi general entertainment channel. Additionally, Network18 holds the
Group’s online & on-air home shopping venture, Homeshop18 and its full spectrum
events management venture, E18.
History of Television 18 (ICICI direct research website)
Year 1993
► The Company was incorporated under the companies Act, 1956 on September
24th, as a private limited company viz. Television Eighteen India Private Limited.
The Company was promoted by Mr. Raghav Bahl and Mr. Sanjay Ray
Choudhuri.
► The Company shot into prominence in its first year with the launch of India's first
ever show on satellite television - The India Show on Star Plus. The Company
has won the Asian TV Awards for two years running.
Year 1994
► The Company was converted into a public limited company u/s 44 of the
Companies Act and a fresh Certificate of Incorporation was received on January
2, 1995.
► The Company is the first independent production company contracted by BBC
World to produce a weekly business news programme - India Business Report.
► It launched India's first street countdown show in English. The show was called
Public Demand on EL TV.
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TV18
► It became one of the first TV companies in the country to have 2 fully fledged
production bases in the country.
Year 1995
► The Company entered into a programme production agreement with NBC Asia, a
division of NBC, one of the world's leading broadcasters.
Year 1996
► The Company set up a wholly owned subsidiary in Mauritius viz. Television
Eighteen Mauritius Limited after receiving requisite consent from the Department
of Companies Affairs and the Reserve Bank of India.
► Mauritius Limited is a subsidiary of the company; TEML is also a wholly owned
subsidiary of TV18.
► The Company, through its Mauritius subsidiary, entered into a Joint Venture to
launch Asia Business News India (ABNI), the country's first dedicated 24-hour
business news and information channel.
Year 1997
► The Joint Venture to launch Asia Business News India suffered a major setback
as ABNI closed down following the worldwide merger of ABN with CNBC.
► Its joint venture with Asia Business News India (ABNI) suffered a setback after
the latter closed down following the worldwide merger of ABN with CNBC.
Year 1998
► A separate 51:49 joint venture has been entered into with TV18 to form CNBC
India. This makes TV18 the only Indian production company to have a
substantial stake in the Indian venture of a global broadcaster.
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TV18
Year 1999
► There was a fire at the premises of the Company in April. It damaged the
premises, computer network, air conditioning, furniture and some of the
equipment.
► Television Eighteen India (TV 18) is engaged in generation of programming
content for TV channels.
► The company proposes to use the synergy of its existing business operations to
launch a web portal for a range of information and services.
► A joint venture has been formed between Television Eighteen Mauritius Ltd
(TEML), a wholly-owned subsidiary of TV 18 and Business News (Asia) Private
Ltd (which owns the CNBC Asia brand) to launch CNBC India.
► Television Eighteen India Ltd, a television software production company, is
planning to invest Rs. 3.5 crores to set up Web-based business and
entertainment portals.
► The company is slated to enter the primary capital market with its initial public
offer of 29.36 lakh shares at Rs. 180 per share on December 16.
Year 2000
► Televisions Eighteen India is likely to be listed on the Delhi Stock Exchange in a
week's time.
► Television Eighteen had offered 27.36 lakh shares at a price of Rs 180 to the
public and had reserved 2 lakh shares at Rs 180 on a firm allotment basis to
Alliance Capital Tax Relief Fund 96, Alliance Equity Fund, Alliance Monthly
Income and the Alliance 95 Fund.
► TV-18 has a versatile programme mix like business news, entertainment news,
popular non-fiction programming including chat shows, music shows, game
shows and prime time drama. It is also the only producer in India which can
boast of relationship with practically all leading television channels in India such
as CNBC Asia, Doordarshan, Zee TV, Sony Entertainment Television, MTV, Star
Plus, etc.
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TV18
► TV 18 produces software for television channels such as CNBC and Star.
► The Company entered into a joint venture agreement with Vertex Broadcasting
Corporation which is in the business of setting up and running of FM radio
Station in various locations in the country.
► The Company approved to offer Sony Entertainment Television, the option to
acquire from its wholly owned subsidiary namely Television Eighteen Mauritius
Ltd. Up to 20% of the equity capital of CNBC India Ltd.
► The Company has entered into a business-news content-sharing alliance with eFinancial Express (e-FE) effective 16th May.
► The Company's Internet-focused subsidiary e-Eighteen Dot Com Pvt. Ltd., has
acquired Money Control Dot Com Ltd., which owns the personal finance portal
www.moneycontrol.com.
► TelevisionEighteen
India,
a
content
provider
for
business
news
and
entertainment, has roped in a strategic investor, which will pick up a 40 per cent
stake in a new company to launch its proposed television infotainment channel
and broadband portal.
► The Company has informed that, e-Eighteen, TV 18's internet focused subsidiary
has entered into multiple alliances with leading online brokers including Ask
Raymond James, Hometrade, Indiabulls, Investsmart India and Khandwala
Securities with a strategic objective to extend its audience reach and relationship
by offering transaction capabilities.
► The Company's internet focused subsidiary e-Eighteen.com Pvt. Ltd. (e18) has
signed an agreement with ICICI Venture Funds to take a 10 per cent equity stake
in the e18.
Year 2001
► Joint venture between Television Eighteen (TV-18) and CNBC Asia, has
announced India's first awards for excellence in fund management called CNBC
India-BNP Paribas Mutual Fund of the Year.
► TV18 infotainment channel launch put off
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TV18
Year 2002
► TV 18 Board authorized to issue shares on preferential basis
► Octopusvc Ltd has proposed to acquire 7,00,000 equity shares of the company
representing 6.01% of the voting rights by way of preferential allotment at a price
of Rs 88 per share
Year 2003
► TV 18 rights issue oversubscribed
► Increases stake in CNBC-TV18 channel from 49% to 90%
► Reliance Vision Fund and Reliance Growth Fund, Schemes of Reliance Capital
Mutual Fund(Acquirer) have purchased 9,70,000 shares representing 7.98% of
the total paid up capital of Television Eighteen Limited (Target Company).
► To issue and allot, two equity shares, to every holder of one ZCSPCD as on the
record date November18, 2003 provided that the ZCSPCD has been fully paid
up.
► The business channel in association with Idea Cellular Ltd, hosted 'The power of
Idea' at The Grand Bhagwati in Ahmedabad on Nov 24
► Announced the launch of a nationwide business school competition, Trial by Fire,
to test how prepared management students are for the pressures of work life.
► ICRA has upgraded the rating assigned to Rs 13.44-crore for debenture scheme
► Promoters sell 1 million shares
► CNBC-TV18 is introducing two new shows tonight at 10 and Encounter.
Business@10 is being replaced by Tonight at 10, a current affairs show featuring
Karan Thapar from Monday to Thursday, while feature journalist and political
commentator M.J. Akbar will host Encounter on Fridays.
► Reliance Capital Asset Management Limited has informed that Reliance Vision
Fund - Scheme of Reliance Capital Mutual Fund has acquired 4,70,933 equity
shares representing 3.24% of the total paid up share capital of Television
Eighteen India Ltd
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TV18
Year 2005
► Television Eighteen India launches Fixed Deposit Scheme
► Television Eighteen India Ltd forms a new venture called Broadcast News in
collaboration with the TV18 Group to launch television channels in the news and
information space.
Year 2006
► TV18 appointed Mr Sundeep Malhotra as new CEO for Home Shopping Network
Business Strategy & Future Plans
Television Eighteen has a leading presence in the financial news, information and
transactional space in India through its television, online and new media and data
terminal businesses. Moreover, TV18 is strongly placed to capitalize on the new
opportunities emerging in the economic environment. Going forward, TV18 will look to
consolidate its existing offerings and create and launch new initiatives that will cater to
the evolving finance, investing and consuming information and transaction needs of
audiences in the country. Strategically, the following would be imperatives for TV18:
► Deliver across the financial information and need spectrum- Considering the
robust economic momentum, rising consumerism, growth in the financial needs
of Indian consumers and retail finance markets, increasing global assimilation of
India Inc. and the overall importance of the Indian economy, our presence across
the spectrum of business & financial information is critical. Through our channels,
online services and other offerings, TV18 delivers content ranging from markets
to personal finance & investing choices, from policy to management intelligence
and from corporate news and information to financial education, from benchmark
initiatives to industry verticals. TV18 shall continue to add to its content and
service repertoire to meet all evolving information & transactional needs of the
financial and business audiences in the country.
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TV18
► Exploit content & platform synergies – TV18 will also focus on leveraging
cross platform synergies within its business & financial offerings both in terms of
content, media as well as audiences. The focus will be on ensuing content
availability as is required, with a high degree of ease of use and also as much
customization as possible. Moreover, TV18 shall focus on providing sustainable
value to advertisers and partners by delivering audiences at multiple touch points
across platforms.
► Addressability – With the growing addressability emerging on the Indian media
landscape, TV18 will endeavor to develop competent offerings on addressable
platforms satisfying relevant content needs of India’s business audiences.
► Consolidation & Diversification – Web-18, a key part of TV18 stable, shall
continue to focus on emerging as a leader in the online content, transaction &
communication spaces and thus strengthen TV18’s existing presence in new
media. With the rapid proliferation of online media in India due to better IT
infrastructure, broadband penetration and secure payment gateways, internet
users in India are expected to reach 100 million by 2010 (industry estimates) and
growth in online advertising will also be robust. Clearly, Web-18 with its wide
variety of offerings will be best positioned to monetize both from a user as well as
advertising standpoint.
Risks and Concerns
► A large number of television channels are expected to be launched over the next
year by both incumbents and new market entrants. This could reduce the current
viewer-ship levels.
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TV18
SWOT Analysis (Equity master website)
Strengths
► High Viewership Ratings: The strength of flagship channel CNBC TV 18’s
viewership can be gauged from the fact that during market hours (9 am to 4 pm),
the channel has more viewership than Hindi news and English movie channels.
The channel has gradually widened its coverage beyond stock markets to include
features, events, commodities and fine arts. The channel has programs such as
‘Auto Show’, ‘Tech Show’, ‘Devils Advocate’, which have helped in diversifying its
viewership base and would protect its TRP ratings in case the interest of retail
investors in Indian stock market reduces. Advertisers from diverse sectors such
as banking and finance, FMCG’s, automobiles, telecom, lifestyle advertise on
CNBC TV 18. Besides this, TAM Media research has shown that CNBC TV 18
has an affluent viewership audience, which helps the channel to enjoy high
advertisement rates.
► Association with a Foreign Broadcaster: The flagship channel, CNBC TV 18,
is a joint venture between CNBC Asia Pacific and TV 18. CNBC is a subsidiary of
NBC Universal, a US $ 13 billion company and a leader in business news
globally. This association helps the channel to bring to the Indian shores formats
and content with proven track records, a huge competitive advantage in an
information based industry like the business news.
Weaknesses
► Risk from a potential stock market downturn: CNBC TV 18’s content largely
revolves around the Indian stock market and as such, is vulnerable to any
prolonged slowdown in the equity markets. This in turn would affect its
viewership and also hurt its advertisement revenues.
► Intense competition in new businesses: The Company’s Internet properties
require a lot of marketing expenditure. Besides this, they face excessive
competition from established websites across genres such as timesjobs.com,
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TV18
ndtv.com and cricinfo.com. Also, the company’s news and market data platform
‘Newswire 18’ is still in the investment mode and faces intense competition from
established global majors such as Bloomberg and Reuters.
Opportunities
► Overseas subscription revenues: The Indian Diasporas is increasing its
investments in the booming Indian stock markets. A large part of this Diasporas
would be interested in viewing CNBC TV 18 to get more information on the
Indian stock markets. Hence, the company has the opportunity to significantly
increase its subscription revenues from this source and this in turn, would also
help it command higher ad rates.
► Potential increase in viewership base: IIMS Dataworks ‘Invest India Incomes
and Savings Survey’ 2007, found that there are at least a million people who
earn an income of Rs 1 million per year or more in the age group 18-59 years.
Though 90% of the rupee millionaires have an insurance cover, just over a third
invests in mutual funds and merely a fifth directly into equities. Currently, there
are 5.3 m mutual fund investors. Of the 3.5 m equity investors, over 80% have
put fresh investments in stocks in 12 months and another 1.26 million new
equity investors are expected to come into the markets in the next 12 months.
The findings of this survey indicate the huge potential in the viewership base
and consequently, the advertisement and subscription revenues of the
company.
► Domestic Subscription Revenues: Digitization process (rollout of CAS and
DTH) would lead to an increase in cable penetration from around 70 m homes in
2006 to around 113 million homes by 2011. The average revenue per user in
India is very low compared to other developing and developed countries. The
share of broadcasters in the total subscription revenue is also low compared to
the developed nations. Subscription revenues of the broadcasters are expected
to grow at a CAGR of 25% over the next 4 years and the broadcasters share is
expected to grow faster at 58%. (Source: PWC report on the Indian
Finance & Accounting Project
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TV18
Entertainment and Media sector). TV 18’s channels enjoy high viewership
ratings and so it would be a major beneficiary of this trend.
► Robust growth in television advertisement revenues: Indian advertising
spends, as a percentage of Gross Domestic Product at 0.3%, is abysmally low,
as opposed to other developing and developed countries. Advertising revenue
of the television industry is projected to grow from Rs 66 billion in 2006 to Rs
123 billion by 2011. Again, TV 18 is likely to be a major beneficiary of this trend.
Threats
► Economic downturn: Advertisement spends are discretionary in nature and
any slowdown in India’s economic growth would negatively impact the
advertisement revenues.
► Slow rollout of CAS: The government may delay the rollout of CAS. The
viewers may be hesitant in opting for paid channels. Both these factors may
cause a dent in the subscription revenues of TV 18.
► Increase in competition: The entry of other players in the business news
space or an improvement in the viewership of competition like ‘NDTV Profit’
may hurt its market share and revenues.
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TV18
Product Profile
INDIA'S NO 1 BUSINESS MEDIUM
The undisputed leader in business news and information in India,
CNBC-TV18, is trusted by business leaders for its insight, analysis and
real-time market coverage. With one of the largest and most
comprehensive television content libraries in India, CNBC-TV18 has been the platform
for thought leaders across India, giving India's decision maker’s unparalleled news,
analysis and perspective. Not only has the channel revolutionized business
programming in India, helping viewers to understand and profit from the markets and
from their businesses, it has also built loyal communities, by interacting with people of
all ages through non-markets programming, special on-ground events and a series of
awards that have set the standards for industry benchmarks.
CNBC-TV18's viewership is reflective of the fact that India means business! Not only
has its viewership been better than general English News channels, but it is also better
than the leading print dailies. Currently, it is available in over 28 million households in
India. CNBC-TV18 empowers its viewers to control their financial destinies and enables
business leaders to take informed decisions about their businesses. The channel today
is the business brand of choice for millions of people - business leaders, professionals,
retail investors, brokers and traders, intermediaries, self employed professionals, High
Net Worth individuals, students, housewives, and more, all tune in to the channel's
diverse and eclectic programming. From the metros to the mini metros and rural
regions, the channel interacts with all groups of people, cutting across barriers of age,
income and status, by providing expert advice and analysis. CNBC-TV18 has emerged
as not only the undisputed leader in business news, but an expert in the business of life
itself for India's decision makers.
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TV18
CNBC AWAAZ, India's largest business and consumer channel!
The Indian consumers today rule the economy, driving exponential
growth across sectors. The consumer revolution is underway and so is
CNBC AWAAZ, India's first business and consumer-focused Hindi
channel. CNBC AWAAZ is brought to you by Network18 and the people who gave you
India's leading business network, CNBC-TV18. CNBC AWAAZ is not only the voice of
the Indian consumer but also the single, authoritative source for making intelligent,
informed decisions about investing, saving, spending and career choices. CNBC
AWAAZ hosts an impressive array of shows spanning personal finance, markets, small
businesses, consumer issues, health, education, shopping and more, led by the most
impressive team in business journalism as well as media moguls. CNBC AWAAZ has
the potential to cut across socio-economic categories all over India. It’s no wonder that
CNBC AWAAZ is already the fastest growing business and consumer channel in the
country.
In less than a year and half of its launch, CNBC AWAAZ was being watched by more
than 43% of India's decision makers. These decision makers choose CNBC AWAAZ
ahead of established news channels like Star News, NDTV India and Zee News,
second only to Aaj Tak. CNBC AWAAZ is the second most watched Hindi News
channel amongst all decision makers.
CNN-IBN's
definitive
news
portal,
www.ibnlive.com
provides
streaming video feeds, downloadable tickers, and gives news alerts on cell phones
ensuring that viewers are always the first to know even when they aren't near their TV
sets. And keeping up with the times, the site introduces IBN Blogs, where users can
interact and share views and opinions with journalists through regular online posts.
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TV18
This fastest growing portal provides not just news but "news with interactivity". Having
embarked on the principles of "Inclusive Journalism", the portal unleashes an era of true
cross media convergence with podcasts and live streaming with definitive content. It
gives instant updates on the latest happenings the world over with an Indian
Perspective and in the cluttered cyberspace where news is a commodity; the website
brings in interactivity, transparency, goodwill and trust.
Moneycontrol.com was launched 1999 and acquired by Network18
in the year 2000, and it has been growing at a breathtaking rate ever
since. Today, Money control is the premier end-to-end business and finance portal for
Indian consumers and market watchers. It is the country's No.1 online financial
destination. It is also comparable to the world's largest financial destinations like the
Wall Street Journal's online edition (wsj.com), Fool.com and Yahoo Finance. More than
6 million unique users, 120 million + page views and the highest time spent of 29
minutes per user (as against an Indian average of 9 minutes) make it peerless in the
country. The audience profile is indicated by the fact that more than 85% of our
members using the site's portfolio tracking service have a portfolio of investments worth
more than Rs 500,000 (on a base of approx 0.6 million portfolio users).
Experience us with the Indian Commodities Market live!
Commoditiescontrol.com brings to its users understanding of the
Indian commodities space with coverage of real-time market
information and the interplay between various market participants - live. This information
is enabling, at present, key players - traders, bankers, financial institutions and all types
of market participants who are associated with commodities, to take critical business
decisions correctly, every day.
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TV18
Commoditiescontrol.com is live with real-time price data, information and news flowing
in from more than 100 commodity mandis and markets across India and globally, data
from trading exchanges in all critical commodity trading markets, critical insights from
commodity traders, dealer, experts, analysts, industry bodies and others who live and
deal in the commodity market and have the potential to change it's dynamics.
PowerYOurTrade attempts to deliver a value driven service to the
investing community by bringing together a powerful mix of expert
advice, stock news and analysis. It does this by remaining true to the group's operating
ideals of credible reporting, hard research, and unbiased analysis.
Travel with us on Yatra.com!
Yatra.com is the travel offering from Web18 and it provides travelrelated information, pricing, availability and reservations for airlines,
hotels, railway, buses and car rentals across 5000 large cities and small rural areas
throughout India. The site helps businesses and consumers book airline, railway and
bus tickets online and by calling its call centre. Users can also reserve hotel rooms and
rent cars by calling or online.
Yatra's multi-language customer service centre enables business and family/leisure
travelers to make well-informed and cost effective bookings 24 hours a day or night, 365
days a year . Yatra customers have the benefit of first priority booking and customized
travel packages and deals for multiple large to small hotels, airlines, railways, buses
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TV18
and car rentals at the lowest prices, as a result of strategic relationships with the leading
travel suppliers.
JobStreet.com has grown to become one of the leading Internet
Recruitment websites in the Asia-Pacific, revolutionizing the way
recruitment is done today. JobStreet.com offers a comprehensive suite of interactive
recruitment
services.
International and
local
Asian
corporations
recruit from
JobStreet.com's ever-increasing pool of top talent and manage their recruitment
process through uniquely developed software applications via the Internet.
The website is one-stop destination to select products from a cross
section of 32 categories such as Mobiles, Laptops, MP3 Players, Washing Machines,
Air Conditioners and the like and compare their features and prices. The website also
offers you the ability to view and compare prices for products offered by sellers
Enjoy your game at CricketNext!
CricketNext.com
was
launched
in
2000
by
Walchand
CricketNext.Com Limited and has been recently acquired by Network18 and also forms
part of Web18. It offers volumes of information and opinion, not to speak of contests
and loads of fun. CricketNext.Com recognises the fact that the medium allows ready
interactivity. The interactive features include a daily poll question, celebrity chats and
discussion boards besides encouraging cricketizens to express themselves by writing in
their own columns.
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TV18
It has a team of writers that combines youthful enthusiasm with a dedication to honesty,
a fresh dynamism with values that uphold the best traditions of journalism. Its specialist
weekly columnists include former India captain Dilip Vengsarkar. The site continues to
be a proactive portal that will answer every cricket fanatic's needs for ball-by-ball live
coverage of matches, prompt updates and news-breaking stories.
It has to its credit of having sponsored key cricket matches in the past & also being
nominated as the official internet partner for important cricket tournaments. It has been
the recipient of the 'Best of Asia and Pacific' awarded by Sintercom, Singapore & also,
the 'Golden Mouse Awards' for the Best Sports Site of the Year.
Check out the products at HomeShop18!
HomeShop18 (HS18) is a new venture from the Network18. HS18 is a
nationally televised home shopping service, selling credible brands
through interactive electronic media, primarily through cable TV and internet.
HS18 is committed to providing superlative quality, exceptional value and unmatched
convenience. From the stage of product selection, to placing the order & all the way to
the final delivery at your doorstep – an experience that you can depend upon! HS18
makes shopping fun and easy. Great products & established brands, multiple payment
options, time bound delivery and a 15 day ‘no questions’ asked replacement guarantee.
HS18 is committed to building a credible proposition for both the consumer & its
partners.
Josh18 has given a new identity to the bi-lingual Indian who is as
comfortable conversing in Hindi as well as in English. It is the first and only
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TV18
Hindi website that provides a platform for Indians to raise their voice in Hindi (or even in
English, as many of our bi-lingual readers do).
Josh18 is unique among Hindi websites as it gives more space to readers' opinion than
to editorial comments! Our readers can express themselves on Josh18's blog "Garam
Chai", participate in polls, write their opinion on specific issues or vent their feeling on
every single story posted on site.
Check out the products at Tech2!
Tech2.com is Network18's integrated technology media brand. It
includes the website, www.tech2.com, the Tech Shows on CNBCTV18 and CNN-IBN, and in the near future, Events as well as a Mobile Platform.
Tech2.com focuses on providing quality technology info and buying advice to the
masses. Tech2's content is simple. No Jargon, no unnecessary blabber, and absolutely
no tech you can't understand. We try to make the tech world accessible and usable for
"everybody". We make it easy for you to decide what's good, and what's not, so you
don't end up buying something which is a dud, or may not fit your style of usage, and
always try to give you the best value, no matter what the price range.
Tech2 tests all its hardware and software at India's most comprehensive technology test
labs, and the only one with a dedicated soundproof Audio / video testing room to test
the latest HDTVs, gaming consoles, speaker systems, and high end A/V receivers. The
Tech2 editorial team has a cumulative tech editorial experience of over 70 years, and
has contributed India's top technology brands like CHIP, Digit, PC Quest and Network
Computing.
Finance & Accounting Project
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TV18
NewsWire18 Ltd is a part of the Network18 Group. NewsWire18 was
formed by acquiring the staff and business of CRISIL MarketWire Ltd,
India's first real-time financial news agency.
NewsWire18 has more than 100 editorial staff across 9 bureaus and provides
unmatched coverage of the Indian economy and financial markets. NewsWire18
publishes the MoneyWire, the EquityWire, the CommodityWire, and the FundWire—
each designed to meet the specific information needs of participants in each of these
growing markets.
NewsWire18 is headed by Pankaj Aher, a financial journalist with 15 years' experience.
Pankaj and his colleagues, Abhijit Doshi, and Kalyan Ram — are founder-shareholders
of NewsWire18. This is the same team that set up CRISIL MarketWire in 2001 from
BridgeNews, to which the team traces its lineage.
Stay connected with us for our offerings in the Indian movie space!
Studio18 is the entertainment division of the Network18 Group. Our
business model encompasses a 360 degrees approach to the film
business that includes Production, Acquisition, worldwide Distribution, Marketing,
Syndication, Home Video and Music Label.
Studio18 has entered into strategic collaborations with established production
houses/content developers within India to co-produce quality films, which will be
marketed and distributed by us independently. We will be announcing an acquired
film/product in India and overseas, shortly. Our focus over the next few months will be
identify and acquire content and manage and exploit all rights related to the same.
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TV18
Simultaneously, the studio is signing up with key talent by way of directors and
scriptwriters who will work on our home productions, which are scheduled to begin in
the next quarter.
Capital18 is the group’s venture capital and private equity arm focused
on making investments in media, entertainment and technology
ventures. Capital18 will particularly focus on catalyzing ventures that drive or benefit
from the convergence of media, communications and technology. Capital18 aims to be
the partner of choice for emerging businesses with its practical approach to venture
investments and an experienced team that can take quick decisions. Investments will be
made in areas where the group’s business building skills and understanding of media
landscape can be brought to bear effectively.
Capital 18 actively seek entrepreneurs who are:

Addressing a large market opportunity

Action oriented

Customer focused

Hungry to succeed
E18 is one of Network18's latest ventures. It is active in the live
entertainment space. It will leverage the various brands owned by the
Group, including the new ones added via the Viacom 18 joint venture. E18 will be
conceptualizing and staging large format events in and around India such as concerts
by international artistes, Bollywood shows and award nights. It will also conceptualize
and execute large format business conferences, conclaves and seminars. The company
will also provide complete solutions for all below the line activities of corporate clients.
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TV18
The division will function as a full service agency for corporate events - including
product launches, corporate seminars, meets and conferences, retail marketing
programmes, including product promotions, road shows, and display promotions, event
marketing, including sponsorships, barter tie-ups and event promotions.
Bigtree Entertainment, one of the latest additions to the Network18 family,
is India's premier comprehensive ticketing, information and analysis
solutions provider. It has interests in software sales and asupport, ticketing
services, box office tracking and analysis. With a dedicated team of over
250 people, Bigtree is poised for growth in each sphere of its operations. Bookmyshow,
Bigtree's ticketing service was launched on August 6, 2007, and has a presence in
almost all the cities and multiplexes across the country. With Bookmyshow, one can
book movie tickets across all theatres through phone or the net. The service not only
books tickets but also offers great deals and value added services.
IndiWo.com as the name suggests is meant for the Indian woman
everywhere in the world. The site's aim is to continuously empower her
to make informed decisions, learn new things and choose the best products and
services for herself and her family.
Indiwo has created a platform where women can find out about issues related to every
aspect of life and also connect with others to seek advice and share experiences. It
cover s a host of issues for every stage in her life from being a Bride to a Mother and
also day-today issues ranging from Life & Work to Beauty & Fashion.
With a host of experts covering important topics, videos, photo galleries, interactive
tools, forums and more, the site aims to be the daily online destination for the Indian
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TV18
woman whether she has a career, is a home maker, has retired or is in between stuff.
Indiwo understands her.
Web18's entertainment portal , Buzz18, has a comprehensive content
range, compelling a user to be active rather than passive. It meets
people's entertainment needs comprehensively, and anyone with access to the Internet,
in the office or at home, NRIs with a strong desire to stay in touch with desientertainment , will all now find a single destination.
Buzz18 brings users the latest releases in one's chosen language: Bhojpuri or Hindi,
Tamil or Bengali. The site's TV and music sections give users the latest news and
highlights on shows, reviews and previews. It also gives latest trailers, previews,
interviews, events and short films by independent filmmakers . Also available are latest
Hollywood trailers and videos from Associated Press. Plus users can listen to music
created by aspiring amateurs and professional musicians across the country ; and
upload their own audio, video and become a film critic overnight !
IN.COM, launched on 21st July 2008, caters to the entire internet
consuming audience, bringing it the latest and the best of news,
songs, videos, products, games, and the worlds shortest email id. Within a short period
of its launch, the site has emerged as India's leading general interest web destination
(No.2 Indian Site, Comscore- Sep'08).
The site has impressive content width with the largest online collection of licensed
music in India (More than 30,000 songs) and a great repertoire of online games (More
than 10,000 games) apart from delivering the first fully indigenously developed, globally
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TV18
benchmarked email service. IN.COM has a content neutral approach, which considers
videos and text content equally during news search results. The site operates with a
robust methodology for site selection which indexes content and auto-associates
objects based on proximity, frequency and uniqueness. The power packed content
offering of IN.COM has been packaged into a rich but clutter free user interface, which
greatly facilitates ease in accessing the right content and a fantastic user experience.
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TV18
Environmental Analysis
Internal Environment
Conservation of Energy
► Television Eighteen is not an energy intensive unit. However, regular efforts are
made to conserve energy in Company’s editing facilities, studios, offices etc.
Research and Development
► The Company continuously makes efforts towards research and developmental
activities whereby it can improve the quality and productivity of its programs.
Foreign Exchange Earnings and Outgo
► Complete Disclosure of foreign exchange earnings and outgo are made in
Audited Annual Accounts.
Human Resources and Development
► Television Eighteen recognizes that a significant part of its success depends on
the quality of its human resources. This intellectual capital is reflected in the
quality of their programming and broadcasting, business strategy, excellent
customer relations and financial health. The Company continually focused on
attracting, developing and managing talent. Robust Human Resource systems
& processes have been implemented to provide an enriching work experience to
employees. A culture of incentives and pay-for performance has been inculcated
to ensure excellence in deliverables.
► Network18’s Human Resource team continues to make a concerted effort to
cultivate Company’s image as an ‘employer of choice’ at leading campuses
across the country. This, coupled with the Network18Group’s strong brand
equity, continues to attract the best talent in the industry.
► The comprehensive Performance Management System continues to help
employees recognize their strengths and areas of improvement. Company has
created a dedicated Organization Development team which aims to create a
Learning Organization in the coming years. In efforts towards building a High
Performance Work Culture, a set of 5 Values are being deployed along with the
Mission statement. The Reward & Recognition Program that was introduced last
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TV18
year continues to identify and reward the outstanding performers for their
contribution and excellence. Embedded HR teams are working closely with
different businesses so that there is rigor in the support.
Employee stock option and stock purchase plan
► Television Eighteen has always believed in rewarding its employees for their
continuous hard work, dedication and support. To enable more and more
employees to enjoy the fruit of growth which the Company has witnessed in the
recent past and to attract fresh talent, Company had implemented various ESOP
Plans from time to time.
► Television Eighteen was managing large number of ESOP Plans which were
successfully implemented in the past, however in view to administer these Plans
better, company introduced new plans in year 2007. The new ESOP 2007 and
ESPP 2007 have been implemented to safeguard/protect the interests of the
employees by consolidating the un-granted options/shares under various ESOP
Plans of the Company. The cancellation of the un-granted options has not in any
manner affected the options already granted by the Company to its eligible
employees under old Schemes and such options shall remain in full force in
accordance with the respective ESOP Plans.
► Accordingly, the employees of the Company are presently benefited from ESOP
2007 and ESPP 2007 besides the benefits drawn from the options granted but
not vested under the old Schemes. ESOP 2007and ESPP 2007 evolves benefit
to the permanent employees and Directors of the Company and its Holding and
Subsidiary Companies, and such other person / entities as may be prescribed by
SEBI from time to time, and in accordance with the provisions of the prevailing
regulations.
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TV18
According to the new plans, the Shares and Options would be distributed
based on:
• Performance of the employee.
• Position and responsibilities of the employee.
• The nature of the employee’s services to the Company or its Holding and
Subsidiary Company.
• The period for which the employee has rendered his services to the
Company or its Holding and Subsidiary Company.
• The employee’s present and potential contribution to the success of the
Company or its Holding and Subsidiary Company.
Other Employee Benefits
► The employees’ provident fund scheme.
► Short term employee benefits (medical, leave travel allowance etc.) are also
provided to the employees.
► The Company provides for gratuity, a defined benefit retirement plan (the
“Gratuity Plan”) covering eligible employees.
► Benefits comprising long term compensated absences constitute other long term
employee benefits. The liability for compensated absences is provided on the
basis of an actuarial valuation done by an independent actuary at the year end.
Company’s philosophy on code of governance
► Corporate Governance is the set of policies, processes and practices governing
the affairs of TV18 in pursuit of its business goals. Corporate Governance is
based on the principle of integrity, fairness, equity, transparency, accountability
and commitment to values. As stakeholders across the globe evince keen
interest in the practices and performances of companies, Corporate Governance
has emerged on the center stage.
► Over the years, governance processes and systems have been strengthened
and institutionalized at TV18. Effective implementation of policies underpins the
commitment of the Company to uphold highest principles of Corporate
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TV18
Governance consistent with the Company’s goal to enhance the value of
stakeholders.
► TV18 believes that its vision coupled with its Business Principles and Core
Dimensions, would create the culture of High Performance Environment to
enhance overall stakeholder value. TV18 believes that fairness in corporate
procedures, full disclosures in reporting system, total transparency in corporate
culture, fiduciary and trustee relationship and maximization of shareholder’s
value in the long run are the pillars on which the structure of the Corporate
Governance rests.
External Environment: Industry Analysis
The India entertainment and media industry is projected to grow at USD 21 billion by the
year 2010 growing at the CAGR of 20%. With the growth in the Indian economy coupled
with the increased spending levels, media consumption patterns are also witnessing a
great increase. To take advantage of India’s growing media and entertainment industry
companies have been increasingly diversifying across the media and entertainment
industry companies have been increasingly diversifying across to media value chain. All
the segment of the industry is expected to contribute to the growth. One of the most
significant trends of the growth is that of media convergence, which puts the focus on
consumer and their media consumption patterns.
Amongst the various segments of this industry, the television segment will continue to
be one of the largest contributors to the growth with around 50% market share.
The share of internet in the global advertising pie is also growing continuously. With the
advent of broadband, value added content, secure payment gateways and enhanced
back end logistics, the internet is slowly growing into a preferred media for consumers
with substantial revenue potential. In India context the focus will enter on news &
content aggregation portals recruitment travel, online retailing sites with an estimated
100 million internet users and 20 million broadband connections by 2010 internet is
becoming a preferred media platform in India.
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TV18
Recently the TV18 brands operating in the business & consumer space were brought
together under the same umbrella, the CNBC universe. Being more than a branding
platform the CNBC universe aims to deliver substantial value to viewers and stake
holders through multiple audience touch points and content width.
Pest Analysis (equity master)
POLITICAL factors

Taxation - tax rates and incentives: TV18 is India’s premier news broadcaster
and a leading media content provider, declared its 4QFY06 numbers. The
company continues to roll out positive surprises on its financial performance front
and has managed to maintain its lead in the increasingly competitive business
news segment. For FY06, the company reported a bottom-line growth of 68%
YoY on the back of a 56% YoY surge in top line. More importantly, the operating
margins have expanded by 260 basis points (2.6%) during the fiscal. The
performance has been equally good for the fourth quarter.

Television Eighteen (TV18) is India's premier business news broadcaster and a
leading media content provider to the jointly branded channel - CNBC-TV 18. TV
18 holds a 90% stake in the channel with the balance with CNBC Asia, which is
equally owned by NBC (owned by GE) and Dow Jones. TV 18 provides a variety
of content for television programming with its primary focus on delivering capital
market and financial news. It's tie-up with CNBC Asia led to the launch of CNBC
India, a 24-hour business news and information channel. Further, the company
launched India’s first ever, Hindi language consumer channel – Awaaz – on
January 13, 2005. The company also owns the premier business news portal,
moneycontrol.com. Recently, it also acquired an agri informatics business portal
– eagritrader.com.
ECONOMICAL factors (Indian television)
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TV18

The company is enjoying continuing strong financial performance of CNBCTV18, which has resulted in better-than-expected internal accruals, thereby
lowering the amount of dilution required in the Rights Offering.

The current expansion of infrastructure will significantly upgrade the quality of
CNBC-TV18, our existing channel. It will also allow us to launch new broadcast
properties and enhance shareholders’ value.
SOCIAL:

Demographics: Age: 18-40+, Gender: Female and Male, Occupation:
Students, working, business and housewives, Income: above Rs 50,000

Culture: Hindu, Christian & Muslim

Attitude: Health conscious, motivated and active

Leisure interests: reading news paper, watching TV especially news channel
and business channel, listening to radio and shopping.
TECHNOLOGIAL:

Recent technological developments: The TV18 Group will contribute its
Motion Pictures division operation to the joint venture, which produces, acquires
and distributes Hindi-language films. Additional cooperation in the Indian market
beyond this alliance includes joint ownership of the management company for
The Indian Film Company, which is in the process of being listed on the
Alternative Investment Market (AIM) of the London Stock Exchange. In the
coming months, Viacom’s Paramount Pictures and DreamWorks studios will
explore additional opportunities for collaboration with Viacom-18.
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TV18
Analysis of Two year Financial Statements
Horizontal Analysis
Balance Sheet
Rs. cr
Period & months
2008/03
2007/03
Change
in Rs
%
Change
SOURCES OF FUNDS
Owned Funds
Equity Share Capital
59.78
28.28
31.5
111.39
Share Application Money
42.48
0
42.48
Preferential Share Capital
0
0
Reserves & Surplus
414.6
242.06
172.54
71.28
Loan Funds
Secured Loans
120.34
203.41
-83.07
-40.84
Unsecured Loans
396.33
108.51
287.82
265.25
TOTAL
1,033.54
582.26
451.28
77.50
USES OF FUNDS
Fixed Assets
Gross Block
144.86
135.14
9.72
7.19
Accumulated Depreciation
62.15
44.16
17.99
40.74
Less: Revaluation Reserve
0
0
0
Net Block
82.71
90.97
-8.26
Capital Work-in-progress
10.62
0
10.62
Investments
901.92
214.97
686.95
319.56
Net Current Assets
Current Assets, Loans & Advances
402.43
372.55
29.88
8.02
Less: Current Liabilities & Provisions
364.56
97.15
267.41
275.25
Finance & Accounting Project
-9.08
Page 34
TV18
Total Net Current Assets
37.87
275.4
-237.53
-86.25
Miscellaneous Expenses not written off
0.42
0.91
-0.49
-53.85
TOTAL
1,033.54
582.26
451.28
77.50
Number of Equity shares outstanding (Cr.)
11.96
5.66
6.3
111.31
Bonus component in Equity Capital
31.01
2.41
28.6
1186.72
Book Value of Unquoted Investments
347.66
82.92
264.74
319.27
Market Value of Quoted Investments
554.19
132.06
422.13
319.65
Contingent liabilities
603.5
41.52
561.98
1353.52
Notes:
Analysis

The company’s equity share capital has increased from 28.8 crores in 2007-08 to
59.78 crores in 2008-09. The increase rate is 111.39%. This is because company
has issued 6, 00,00,000 shares at Rs 5 per share. Raising funds through equity
share is a good option for company because it carries less risk; however rate of
dividend is high on equity shares so it is an expensive source of raising funds.

Reserves and Surplus has increased from 242.06cr to 414.6 cr, this is because
company has Rs 270,272,970 with it as Equity warrant refundable application
money.

Secured loans amount has decreased from 203.41 cr in 2007 to 120.34 cr in
2008. Following is the statement of secured loans account:
SECURED LOANS
 Zero coupon secured partly convertible debentures
 Premium payable on redemption of debentures
 Loans from banks
o Cash credit
o Term loans
o Working capital demand loan
Finance & Accounting Project
2008
2007
64,031,539
16,012,362
81,494,686
20,382,626
237,217,475
577,637,284
135,840,631
417,787,587
955,122,487
–
Page 35
TV18
o
o
Other loans
Term loans from others
Total

10,548,891
408,333,335
1,449,621,517
17,597,530
641,666,667
2,134,051,583
Unsecured loans has increased from 108.51 cr to 396.33 cr. Major reason for this
growth being that TV18 has taken a loan of Rs 2,750,000,000 from bank.
Although this is an unsecured loan but it carries a very high interest rate.

Gross block of the company has increased from 135.14 cr to 144.86 cr, reason
being that goodwill and brand value of company has considerably increased.
Another important addition to fixed assets account was plant and machinery was
purchased worth Rs 36,54,75,012.

Company’s investment has also increased from 214.97 cr to 901.92 cr. Prime
constituent for this increase are
o
592,885 equity shares of Rs. 4 each fully paid up in KSL and Industries Limited 149,999,905
o
275,000 equity shares of Rs. 10 each fully paid up in Refex Refrigerants Limited55,000,000

Company’s net current assets have decreased from 275.4 cr to 37.87 cr. This Is
because company has a huge current liability of Rs 270,272,970 with it as Equity
warrant refundable application money.

Contingent liabilities of TV 18 has increased from 41.52 cr to 603.5 cr. Reason
for that is as follows:
Mr. Victor Fernandes and other (“plaintiffs”) had on 25 August, 2006 filed a suit as
derivative action on behalf of e-Eighteen.com Limited before the High Court of Bombay
against Mr. Raghav Bahl, TV18 and other TV18 group entities. The plaintiffs are inority
shareholders of e-Eighteen.com Limited and have alleged that Mr. Raghav Bahl, TV18,
ICICI Global Opportunities Fund and e- Eighteen.com Limited had entered into a
subscription cum shareholders agreement dated 12 September, 2000 under which Mr.
Raghav Bahl and TV18 had inter alia undertaken that any opportunity offered to them
shall only be pursued or taken up through e- Eighteen.com Limited or its wholly owned
subsidiary. The plaintiffs have alleged that Mr. Raghav Bahl and TV18 have promoted
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TV18
and developed various businesses through various entities which should have under the
aforesaid agreement rightfully been undertaken by e-Eighteen.com Limited or its wholly
owned subsidiaries. The plaintiffs have alleged that by not doing so Mr. Raghav Bahl
and TV18 have caused monetary loss to e-Eighteen.com Limited as well as to the
plaintiffs. The plaintiffs have valued their claim in the suit at Rs. 30,141.20 million and
Rs. 999.40 million and have inter alia prayed that Mr. Raghav Bahl, TV18 and other
TV18 group entities be ordered to transfer to e-Eighteen.com Limited all their
businesses, activities and ventures along with all assets and intellectual property. The
plaintiffs on 18 September, 2006 had filed a notice of motion in 2006 seeking ad interim
relief. A reply had been filed with the Bombay High Court on 14 November, 2006. The
matter is currently pending. The next date of the hearing is scheduled on 8 August ,
2008.
Finance & Accounting Project
Page 37
TV18
Profit and Loss
Rs. cr
Period & months
2008/03
2007/03
Change in Rs
% Change
292.22
193.96
98.26
50.66
Material Consumption
0.99
1
-0.01
-1.00
Manufacturing Expenses
43.8
17.96
25.84
143.88
Personel Expenses
42.31
33.58
8.73
26.00
Selling Expenses
57.96
30.54
27.42
89.78
Administrative Expenses
58.98
51.23
7.75
15.13
Capitalised Expenses
0
0
0
Cost of Sales
204.05
134.3
69.75
51.94
Reported PBDIT
88.17
59.65
28.52
47.81
Other Recuring Income
29.01
7.44
21.57
289.92
Adjusted PBDIT
117.18
67.09
50.09
74.66
Depreciation
18.28
17.48
0.8
4.58
Other Write-offs
0
0
0
Adjusted PBIT
98.9
49.61
49.29
99.35
Finanical Expenses
56.26
27.28
28.98
106.23
Adjusted PBT
42.63
22.33
20.3
90.91
Tax Charges
17.27
-0.71
17.98
-2532.39
Adjusted PAT
25.37
23.04
2.33
10.11
Non-recurring Items
4.74
-4.31
9.05
-209.98
Other
Adjustments
0.38
-1.62
2
-123.46
30.49
17.51
12.98
74.13
INCOME
Net Operating Income
EXPENSES
REPORTED PAT
Non-cash
Finance & Accounting Project
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TV18
APPROPRIATIONS
Equity Dividend
23.27
11.29
11.98
Preference Dividend
0
0
0
Retained Earnings
7.5
27.43
-19.93
106.11
-72.66
Analysis



Net operating income of company increased by 50.66%, it has increased from
193.96 cr in 2007 to 292.22 cr in 2008. Other that marginal growth in income
from its prime operations, company also received Rs 203,298,471as dividend
from investments.
The PAT percentage to Net Income was 9% in 2007 whereas it has increased to
10.4% in 2008. This means the efficiency of company has increased.
In 2008 TV 18 has distributed higher amount of dividend to equity holders, thus
the retained earnings has decreased by 72.66%.
Finance & Accounting Project
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TV18
Vertical Analysis
Balance Sheet
Rs. cr
Period & months
2008/03
% to total assets
Equity Share Capital
59.78
5.320019935
Share Application Money
42.48
3.780435711
Preferential Share Capital
0
Reserves & Surplus
414.6
36.89662537
Secured Loans
120.34
10.70945465
Unsecured Loans
396.33
35.27071764
TOTAL
1,033.54
SOURCES OF FUNDS
Owned Funds
Loan Funds
USES OF FUNDS
Fixed Assets
Gross Block
144.86
12.89157055
Accumulated Depreciation
62.15
5.530934074
Less: Revaluation Reserve
0
Net Block
82.71
7.36063648
Capital Work-in-progress
10.62
0.945108928
Investments
901.92
80.26484408
Current Assets, Loans & Advances
402.43
35.81357682
Less: Current Liabilities & Provisions
364.56
32.44340026
Total Net Current Assets
37.87
3.370176563
Net Current Assets
0
Finance & Accounting Project
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TV18
Miscellaneous Expenses not written off
0.42
0.037377189
TOTAL
1,033.54
77.5
Number of Equity shares outstanding
(Cr.)
11.96
Cuu
Bonus component in Equity Capital
31.01
Notes:
Book Value of Unquoted Investments
347.66
Market Value of Quoted Investments
554.19
Contingent liabilities
603.5
Analysis



One of the biggest financial strength of TV18 is the amount of investment they
have done. Investments account for more than 80% of company’s assets. Thus
TV18 earn huge income from its non business activities.
Because of the huge amount of unsecured loan taken from banks, company’s
unsecured loan accounts for more than 35% of total liabilities.
Current assets of company accounts for 35.81 of companies total assets. Cash
represents more than 15% of company’s total assets. Thus TV18 has good
amount of liquidity.
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Page 41
TV18
Profit and Loss Account
Period & months
2008/03
% to total expenses
INCOME
Net Operating Income
292.22
Material Consumption
0.99
0.28
Manufacturing Expenses
43.8
12.50
Personel Expenses
42.31
12.07
Selling Expenses
57.96
16.54
Administrative Expenses
58.98
16.83
Cost of Sales
204.05
58.23
Reported PBDIT
88.17
Other Recuring Income
29.01
Adjusted PBDIT
117.18
Depreciation
18.28
Other Write-offs
0
Adjusted PBIT
98.9
Finanical Expenses
56.26
Adjusted PBT
42.63
Tax Charges
17.27
Adjusted PAT
25.37
Non-recurring Items
4.74
Other Non-cash Adjustments
0.38
REPORTED PAT
30.49
Equity Dividend
23.27
Capitalised Expenses
Finance & Accounting Project
5.22
16.05
Page 42
TV18
Preference Dividend
0
Retained Earnings
7.5
Analysis
Financial expenses, selling expenses and administrative expenses are the three biggest
cost centers for TV18. Since TV18 is into service industry the material consumtion cost
is really low. It’s just 1% of total expenses.
Finance & Accounting Project
Page 43
TV18
References:
Outlook Arena, http://www.equitymaster.com/p-detail.asp?date=11/7/2007&story=1 ,
viewed on 23 March 2009
ICICI direct, TV18 History,
http://content.icicidirect.com/research/myresearch1.asp?icicicode=TV18 , viewed on 21
march 2009
Network 18, http://www.network18online.com/, viewed on 18 March 2009
http://content.icicidirect.com/research/snapshot.asp?icicicode=TV18
http://www.equitymaster.com
http://www.indiantelevision.com/headlines/y2k3/june/june49.htm
http://ibnlive.in.com/financials/tv18viacomtieup.php
Finance & Accounting Project
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