MANAGEMENT DISCUSSION AND ANALYSIS 

 The figures have been stated in Rs. millions (unless stated otherwise) in this MD&A for better readability. Investors are cautioned that this discussion contains forward looking statements that involve risks and uncertainties including, but not limited to, risks inherent in the Company's growth strategy, acquisition plans, dependence on certain businesses, and dependence on availability of qualified and trained manpower and other factors. The following discussion and analysis should be read in conjunction with the Company's financial statements included herein and the notes thereto.

Company Overview:

Zee Media Corporation Limited (ZMCL) (BSE Code: 532794,

NSE Code: ZEEMEDIA), is India's leading News Television organization with interests in National as well as Regional News channels. The Company was incorporated on August 27, 1999 as Zee Sports Limited and was later renamed as Zee Media Corporation Limited from erstwhile Zee News Limited (ZNL) to reflect the change in intent to reach out to consumers beyond television media and to signify the breadth of the news offerings across platforms.

The Company is listed at BSE and NSE since January 2007. To comply with the News Up-linking Guidelines of Government of India, Zee Entertainment Enterprises Limited (ZEEL) transferred its news business to Zee News Limited w.e.f. March 2006 by way of a de-merger scheme approved by the Hon'ble High Court of Bombay and thus ZNL had National and Regional News and Regional General Entertainment as its focus areas. However, in order to become a pure News Powerhouse, it was decided to separate the Regional General Entertainment Channel (RGEC) business from the News Business and under a Scheme of Arrangement approved by the Hon'ble Bombay High Court, the RGEC business undertaking of the Company were transferred to Zee Entertainment Enterprises Limited (ZEEL) with effect from January 1, 2010.

ZMCL also runs a Bangla news channel called '24 Ghanta' through a JV M/s Zee Akaash News Private Limited wherein it holds 60% equity stake while the other JV partner M/s Sky B (Bangla) Private Limited holds the remaining 40% stake. To further strengthen the hold in east, the company acquired 100% equity stake in Maurya TV Private Limited in December 2014.

Post amalgamation of Essel Publishers Private Limited with effect from April 1, 2014, your Company has entered into Print business comprising of printing and publishing of DNA, an English daily newspaper.

Media & Entertainment Industry 

In 2015-16, India outgrew all of the major economies of the world in spite of turbulent waters globally as well as domestically. The growth was driven by strong domestic demand and its effect also rubbed off on to the Media & Entertainment sector.

As per FICCI-KPMG Indian Media and Entertainment Industry Report 2016, Media and Entertainment industry grew by 12.8% from Rs. 1,026 billion in 2014 to Rs. 1,157 billion in 2015. Television industry rode on massive spending by e-commerce companies and strong performance of important sports events, such as IPL and World Cup, to register a growth of 14.2% to Rs. 542 billion in 2015 from Rs. 475 billion in 2014. Broadcast advertisement revenues grew by 17% to Rs. 181 billion in 2015 from Rs. 155 billion in 2014. Broadcast subscription revenues witnessed a growth of 15% to Rs. 86 billion in 2015 from Rs. 75 billion in 2014. 

The year witnessed the launch of an alternative rating system by Broadcast Audience Research Council (BARC), which includes rural population and larger sample size. The introduction of BARC led to a reshuffle in channel rankings and change in content strategy of all players. If the trends are sustained, it will lead to advertisers rethinking their ad budget allocation.

News Segment

The news genre, where your company operates, witnessed single digit growth in 2015 as it was brceded by a year of high growth due to elections. As per FICCI-KPMG Indian Media and Entertainment Industry Report 2016, viewership share of News Genre was 6.5% of the total TV viewership.

The newspaper business in India, unlike other countries, continues to grow at a steady clip of 8%. The growth is being driven by increasing readership in smaller towns with young and aspiring population, growing impetus towards education, increasing national literacy rates, and lower penetration of internet as compared to western countries.

Business Operations:

Broadcasting

In terms of newsgathering, the Company has one of the largest networks of news bureaus and correspondents with a pan-India brsence. The Company's news gathering capabilities are significantly enhanced by its KU Band network and strong relationships with international news agencies. The Company is equipped with state-of- art technology in content creation, packaging and broadcasting.

Distribution

During FY16, all the channels of the Company were offered through various cable operators and DTH providers as a part of the Zee distribution bouquet of channels by Taj Television (India) Private Limited ("Taj Television"). From FY17 onwards, the Company's channels are offered as a part of the Zee distribution bouquet of channels by Zee Entertainment Enterprises Limited.

Up-linking of Channels

The Company has an arrangement with Dish TV India Limited for up-linking of its channels through their teleport. Dish TV has a license for up-linking of TV channels from the competent Government authority.

Advertisement Sales

The Company has entered into an arrangement with Zee Unimedia Limited from FY17 onwards to sell its advertisement space to various advertisers. Zee Unimedia is engaged in advertisement sales across Television, Print, DTH, Cable and Digital platforms. The arrangement is expected to benefit the Company with increased advertisement sales clientele due to cross / combined selling across media.

Business Overview

During the year under review, your company's primary focus was on consolidating its existing offerings before moving on to the next wave of expansion. The company sought to increase the reach of its recent launches as well as the digital channels. This resulted in Network's reach of 258 million viewers through television and more than 280 million consumers through digital medium. (Source: BARC, All India NCCS 4+, Jan-March 2016, Avg Monthly Reach; Google Analytics; Facebook; Twitter).

Zee News, your Network's flagship channel, continued to provide credible and authentic news to viewers and became the most trusted brand among the Hindi news channels according to The Brand Trust Report by TRA Research. The channel's exceptional journalism earned it the "Ramnath Goenka Excellence in Journalism Award 2013 for Hindi Broadcast" and "7th BCS Ratna Award for Outstanding Journalist of the Year".

As a socially conscious channel, the channel made a direct connect with viewers by making news relevant to their daily lives. The channel sought to answer viewers' anxieties towards the performance of new dispensation through "Modi Sarkar ka DNA Test," where 10 Ministers from the current Cabinet rated their respective ministry's performance. Raising the discussion on healthcare issues in the country, the channel ran a special two-month long campaign and concluded it with "Swastha Bharat Samman" to recognize outstanding work in the field of medical specialization. To accentuate the paramount role played by women in society, the channel has instituted "Zee: Indian Women Awards". The awards honour the accomplishments and contributions of women who have excelled in different spheres of life.

Zee Business, your Network's National Business channel, continued to cater to the economic and business community with conviction and was conferred with "ENBA Award 2015 for BARC India Business News Channel of the Year - Hindi". The channel posed economically relevant questions to the government through Ministerial Conclaves titled "Modi@1" and "India's Growth Story". The channel continued with its flagship markets-related initiatives of "Sensex Ka Sultan," India's first derivatives reality show and "Hunt for India's Smart Investor," which has become the largest reality show in the business news genre and aims to identify the country's smartest investor. To cater to the SME community, the channel organized "Emerging Business Forum," country's largest SME discussion forum, and "SME Growth Series," an initiative to engage the growth drivers of India. To educate and empower investors about various financial instruments and to help them to better plan their investments, the channel organized "Aapka Faayda" investor camps.

24 Ghanta, your Network's Bengali offering, stood out with its clear stand of unbiased and fearless reporting and widest coverage of West Bengal elections. Committed to the tradition of saluting and rewarding the heroes of Bengal, the channel organized the 8th edition of "Ananya Samman" and honoured the brave hearts of the state.

Zee 24 Taas, your Network's Marathi offering, continued its endeavour to turn the spotlight on unsung heroes of Maharashtra. The channel felicitated them through the 8th  edition of "Ananya Sanman". Keeping in view the Network's commitment to focus on news people can use, the channel organized several expert discussions covering diverse topics, such as "Happy Living Parishad" (ways of happy living through Yoga, laughter, etc), "Smart Women Lounge" (platform for women to get guidance and inspiration from achievers in various fields), and "Sutti Parishad" (ways of utilizing school vacations for fun, joy and development activities). The channel provided a platform to citizens to highlight city's problems to politicians and city administrators through "Aapla Shahar Aapla Awaaz" forums across Maharashtra. The channel sought to make a difference to the lives of poor students by organizing "Sangharshala Havi Saath," an event meant to generate donation for students who have excelled in Class 10 exams but cannot afford further education. The channel, along with DNA, organized "Young Innovator Awards" to highlight the efforts of students who came up with innovations powerful enough to bring a change in people's lives.

India 24x7, formerly Zee Sangam, was restaged as a National Hindi News Channel on October 24, 2015 with an aim to provide a mix of news and entertainment and to create a family viewing experience. The channel immediately entered the viewers' mind space and reached more than 97 million viewers during the last quarter. In line with the government's Clean Ganga mission, the channel created a platform "Amrit Dhara Ganga" to gain insights on issues surrounding the river and to honour those who have contributed towards its betterment.

Zee Punjab Haryana Himachal, erstwhile Zee Punjabi, established No. 1 position in the region through its fearless reporting. The channel used music as a means to create awareness on various issues in the region, such as "Shimla@200" in Shimla (environmental awareness) and "Musical Night" at Jalandhar (against drug abuse). Keeping up with its tradition of promoting dialogue between citizens and legislature, the channel commissioned a monthly series "Sarkar Se Samwaad" across Punjab and Haryana. To analyze the performance of current Government of Haryana during first year of service, the channel organized an open forum "Bemisaal Haryana" with Chief Minister Manohar Lal Khattar and key cabinet ministers.

Zee Madhya Pradesh Chhattisgarh, which was launched on March 31, 2013, has made deep inroads into the region and has established No. 1 position through strong local coverage and also earned "Ramnath Goenka Excellence in Journalism Award 2014 for Investigative Reporting - Broadcast". The channel, along with Chhattisgarh government, set a plantation target of 100 million in one year through "Paudhe Lagao Selfie Banao" initiative. The channel remained committed to the tradition of saluting heroes in the Indian Army from Madhya Pradesh through "Ananya Samman" initiative. To promote a dialogue between government and citizens, the channel organized several "State Summits" on diverse topics, such as Agriculture, Skill Development, Information Technology, and 15 years of Chhattisgarh. Continuing with the tradition of promoting states' singing talent, the channel organized "Aawaz of Madhya Pradesh" and "Aawaz of Chhattisgarh". Continuing with the network's commitment to recognize women's role in society, the channel organized "Women Achiever Awards" to honour their contributions in various fields.

Zee Rajasthan News, formerly Zee Marudhara, your network's offering for viewers across Rajasthan, was renamed to establish it exclusively as a news channel. The channel continued to touch the heart of the region and established No. 1 position. Continuing with the network's commitment to recognize the sacrifices made by soldiers of the state, the channel honoured the war widows through "Hai Naman Unko". The channel recognized the outstanding work done by citizens across different fields through "Health Living Awards," "Hospitality and Food Awards," and "Police Awards".

Zee Kalinga News, formerly Zee Kalinga, your Network's offering for Odisha market, was renamed to establish it exclusively as a news channel. Promoting a discussion on growth of India after 68 years of independence and areas where we failed to achieve true Independence, the channel organized a forum titled "Bhul Rahila Keunthi". The channel sbrad the message of brventive healthcare through a "Walkathon" on the occasion of World Heart Day.

Zee Purvaiya, formerly Maurya TV, your Network's offering for Bihar and Jharkhand, was rebranded post acquisition of 100% stake in Maurya TV Private Limited. With a view to help improve the situation of education in Bihar, the channel provided a forum "Education Summit 2016" for government to interact with educators and student community.

DNA, your network's English newspaper for Mumbai, celebrated its 10th anniversary with a power packed special edition. The newspaper continued to unearth the most important stories in city and received the "Ramnath Goenka Excellence in Journalism Award 2014 for Investigative Reporting - Print". The daily launched the 1st edition of "DNA Smart Solutions," a series of workshops where stalwarts from different industries provide career counselling sessions to young aspirants. Continuing with its commitment to promote eco-friendly festivities, the paper extended its "Eco Ganesha" movement into 6th year. The paper reinvigorated college-level quizzing in Mumbai through "Quiz Wiz," an undergraduate level inter-college competition, which received participation from more than 60 colleges. After optimizing the paper's two non-performing editions in FY15, your company plans to launch new editions across multiple cities in FY17.

Zeenews.com registered a year on year increase of 37.3% in visits, 37.9% in unique visitors, and 24% in page views. The website attracted over 160 million unique visitors, 395 million visits with 753 million page views in FY16 compared to 116 million unique visitors, 287 million visits with 607 million page views in the brvious year. The regional arms of the  website put up a phenomenal performance with visitors on Hindi, Bengali and Marathi websites growing by 98%, 95% and 26% respectively.

dnaindia.com registered a year on year increase of 50.1% in visits, 49.3% in unique visitors, and 62.6% in page views. The website attracted over 102 million unique visitors, 173 million visits with 258 million page views in FY16 compared to 68 million unique visitors and 115 million visits with 159 million page views in the brvious year.

Your company launched 5 news apps (Zee News - Hindi, Zee News - English, 24 Taas, 24 Ghanta, and DNA) since December 2015 on Android and iOS platforms and the total installs crossed 1 million mark within six months.

Business Strategy

During the year under review, your company focused on consolidation of its viewership and revenues. Through engaging content and focus on local coverage, efforts were made to increase the viewership across channels, which led to the emergence of Zee Madhya Pradesh Chhattisgarh, Zee Punjab Haryana Himachal, and Zee Rajasthan News as the No. 1 channels in their respective markets.

Equipped with detailed BARC ratings and on-ground research by the leadership, content was tailored to suit the demands of viewers. The network set itself apart from the commoditized content ecosystem through path breaking content propositions, which are finding exbrssion in the channels' evolved programming.

Moreover, the network has been diversifying its revenue risk through experiments and innovations in form and content. Consequently, the new-age advertisers are finding immense value in partnering with us for pushing their communication through our differentiated media vehicles.

Being the pioneer network in media industry, the network is at the forefront of using cutting-edge technology to drive down costs, while improving the quality. As a process driven entity, the network have been successful in optimizing costs which reflects in the improved EBITDA margins.

To establish connection with the new age consumer who brfers consumption of news anytime and anywhere, your company plans to consolidate its offerings across all platforms - TV, Newspaper, Mobiles, Laptops, Tablets - and across multiple languages to become a one-stop shop for all news. The recently launched Malayalam news website (Zeenews.com/Malayalam), business news platform (Zeebiz.com), and 5 new apps (Zee News Hindi, Zee News English, 24 Taas, 24 Ghanta, and DNA) point towards your company's increasing efforts to target audiences on web/ mobile platforms.

The release of rural markets data by BARC revealed limited access to Zee News to viewers in these markets. Therefore, on viewer demand, your company decided to migrate the channel from Pay to Free to Air. The impact in subscription revenues will be offset by reduction in carriage fees and increase in advertisement revenues on the back of increased penetration and strong content.

After majorly focusing on consolidating its position in FY16, your company seeks to move into an expansion mode in FY17 with increase in portfolio, improvement in access across platforms, and through adoption of innovative revenue streams. The network will soon launch its global news platform Wionews.com on web, which will be followed by the launch of an English language global news channel, WION, which will provide news to the world from a South Asian perspective. Utilizing the synergies in the English news space, your company will expand the footprint of its English daily, DNA, to multiple cities.

The planned acquisition of Today Merchandise Private Limited (TMPL) and Today Retail Network Private Limited (TRNL) is a step in the direction of diversification. TV Shopping, with its promising potential, holds great investment value to the Company. The readymade infrastructure for TV Shopping channel and a complementing website, along with the network's existing broadcast operations, will help derive the synergy benefits.

Internal Control Systems

The Company has in place adequate internal control systems, commensurate with its size and nature of operations so as to ensure smoothness of operations and compliance with applicable legislation. The Company has a well-defined system of management reporting and periodic review of businesses to ensure timely decision-making. It has an internal audit team with professionally qualified financial personnel, which conducts periodic audits of all businesses to maintain a proper system of checks and control.

The management information system (MIS) forms an integral part of the Company's control mechanism. All operating parameters are monitored and controlled. Any material change in the business outlook is reported to the Board. Material deviations from the annual planning and budgeting, if any, are reported to the Board on quarterly basis. An effective budgetary control on all capital expenditure ensures that actual spending is in line with the Capital Budget.

Human Resources

The Company respects and values the diverse qualities and backgrounds that its people bring to it and is committed to utilizing the richness of knowledge, ideas and experience that this diversity provides. The work environment is stimulating and development of core competencies through formal training, job rotation and hands on training is an ongoing activity. The Company's Employee strength as on March 31, 2016 was 1,450 in comparison to 1,750 as on March 31, 2015. Decrease in Employee strength was due to internal transfers and to bring  in operational efficiencies through the use of technology. Out of the total employee strength, about 60% is below the age of 35 years rebrsenting strong connect with the ethos of the youth.  

Risk Factors:

The Company operates in a highly competitive industry:

With more and more players entering the News Broadcasting industry, competition is ever increasing. Moreover, technological changes have spawned new distribution platforms inviting competition from newer players. The introduction of alternative rating system by BARC, which includes rural population and larger sample size, has changed the viewership benchmarking in the industry which might affect company's competitive standing. To maintain its competitive edge in such a scenario, the Company will need to anticipate viewer brferences to create, acquire, commission, and produce compelling content across platforms favoured by the consumers.

The Company operates in a highly regulated industry and any new regulations will lead to substantial effect on the business model:

The regimes that affect your Company's business include broadcasting, cable, advertisement, telecommunications, intellectual property, consumer and competition (anti-trust) laws and regulations. Changes in regulations relating to the industry or a related industry could have an adverse effect on the Company's business and results of operation. TRAI has mandated 10+2 inventory norms (10 minutes of advertisement and 2 minutes of internal promotions in an hour) for the television industry. The implementation is currently on hold in the News segment as the News Broadcasters Association (of which your company is a member) has challenged the norms and the matter is currently under the consideration of Hon'ble Delhi High Court. If implemented, there is likely to be a reduction of advertising revenues as company's efforts for rate increase to compensate for lower inventory may not be accepted by the clients. 

The Company's new launches and diversification initiatives might take longer than expected to break even: The Company may from time to time launch new channels / newspapers to further enhance its brsence in the news genre market. The success of any new channel depends on various factors, including the quality of content, price, extent of marketing, competition etc. There can be no assurance that the Company will be as successful in launching new channels / newspapers as it has been the case of its existing channels. The Company is venturing into new businesses to diversify its revenues and may not be able to achieve as much success as in the case of existing businesses.

Primary source of revenue is advertisements and subscriptions by viewers, which may decline due to a variety of factors:

The implementation of Digital Access System (DAS) has not provided expected benefits and has not met the deadlines, which could result in a loss of viewership and hence of advertising and subscription revenues. If the Company's programming is unable to sustain high levels of viewership rating, the consequent decline in advertising revenues will manifest itself as a significant dip in aggregate revenues.

The Company relies on skilled manpower and may not be able to hire or retain important personnel:

The company operates in a manpower intensive industry and may be adversely affected if it loses the services of any of its senior management and other skilled personnel and fails to find equally skilled replacements. Moreover, the chief editors and news brsenters / anchors of the Company have developed significant reputation and viewer following. The Company's inability to retain them may affect the viewership of its channels.

The Company relies on intellectual property and proprietary rights which may not be adequately protected under current laws:

The Company relies on trademark, copyright and other intellectual property laws to establish and protect its rights in these products. There can be no assurance that the Company's rights will not be challenged, invalidated or circumvented or that the Company will successfully renew its rights or licenses.

The business involves risks of liability for news content and related risks, which could result in significant costs:

The Company relies on editors, reporters and freelance journalists/ stringers as well as news wires and agencies for news and other content for the news channels and newspaper of the Company. While we have established systems and protocols to ensure authenticity of reports, any failure by them to follow these systems and protocols may lead to the broadcasting, posting or publishing of defamatory content or result in inaccurate reporting thereby exposing us and our employees to litigation for libel or defamation charges. 

A. Results of Operations

We are pleased to brsent the detailed analysis of Consolidated Financials of the Company for the year ended March 31, 2016 vis-à-vis March 31, 2015.

The consolidated operations of the Company comprise of TV Broadcasting business and Print business.

TV Business consists of three national and seven regional news channels, including 24 Ghanta housed in Zee Akaash News Private Limited (extent of holding 60%), and "Zee Purvaiya" held through Maurya TV Private Limited (a 100% subsidiary).

Print business is made up of Diligent Media Corporation Limited (a 99.99% step down subsidiary], held through Mediavest India Private Limited (100% subsidiary] and Pri-Media Services Private Limited (100% subsidiary). Diligent Media Corporation Limited is engaged in publishing and distribution of an English Daily 'DNA', while Pri-Media Services Private Limited is in the business of printing newspapers and other publishing activities on job work basis.

The Consolidated Financial Statements have been brpared after knocking off the effect of common services among the Companies.

The Rights Issue of the Company, pursuant to the Letter of Offer dated March 16, 2015, was opened on March 25, 2015 and closed on April 8, 2015. The said Rights Issue was fully subscribed for an amount aggregating to Rs. 1,955.59 million, and on April 18, 2015 the Company allotted 108,643,732 Equity Shares of Rs.  1 each, fully paid up, at a price of Rs.  18 per share (including brmium of Rs.  17 per share), resulting in increase in Paid-up Share Capital of the Company to Rs.  470,789,505 comprising of 470,789,505 Equity Shares of Rs.  1 each.

Revenue from Operations

Revenue from TV Broadcasting business operations includes Advertisement Income, Subscription Income and Sale of Programs. The brvious year had been a very News-centric year, riding on various events of national importance, such as National General Elections and World Cup Cricket Tournament, giving a whopping push to the advertisement revenues during FY15. Comparatively, FY16 had been a muted year insofar as the major events are concerned, accordingly growth in revenues has been muted. Overall, the News genre had remained flat during the year, in spite of which your company has posted an increase of X 194.4 million in advertising revenues from TV Broadcasting business whereas the subscription revenues have reduced marginally.

Revenue from Print Business Operations primarily includes Advertisement Income, revenue from printing job work, and sale of newspapers. Revenue number of FY16 is not comparable to brvious periods due to closure of Bangalore and Pune editions with effect from September 2014.

Other Income

The proceeds of Rights Issue aggregating to Rs.  1,955.59 million, as explained above, were received at the beginning of the financial year. Part of the proceeds have been utilized for the stated purposes as per Letter of Offer and the balance amount, pending utilization, have been temporarily deployed in fixed deposits and thus Other Income has drastically increased by Rs.  81.19 million or 86% due to the increase in interest income.

Cost of Raw Material consumed

Reduction in this cost of approximately 17% is due to curtailment in the number of editions, as explained above.

Operational Cost

Main drivers for reduction in Operational Cost have been saving in programming expenses, as the newly launched regional channels namely Zee Rajasthan News (formerly Zee Marudhara), Zee Kalinga News (formerly Zee Kalinga) and Zee Purvaiya (earlier known as Maurya TV) were launched in Terrestrial Entertainment Network (TEN) content architecture (having mix of Regional Entertainment content and News   content), which has a higher cost, and have been later transformed into a full-fledged news channel. Hence the comparison of Total Cost with brvious year figures is not plausible.

Employee Benefits Expense

Personnel cost has reduced by 8.3% or by Rs. 133.04 million from Rs. 1,606.58 million in FY15 to Rs. 1,473.54 million in FY16. The reduction is attributable to cost synergies internally in the TV Broadcasting business, as well as operational synergies in TV and Print businesses with Digital initiatives of the Group.

Finance cost

Finance cost has reduced by more than 16% due to reduction of loans, which have been repaid as per objects of the Rights Issue. Further, the effective interest rate has reduced in the Print Business through the issue of unlisted, rated, redeemable non-convertible debentures (NCDs).

Debrciation

Debrciation has reduced by approximately 4% due to sale of certain plant and machinery of one of the subsidiaries of the Company in Print business. Apart from that, since there has been no major capital expenditure during the year, debrciation has remained flat.

Other Expenses

Other expenses which include all Administrative, Selling and Distribution expenses, have reduced by 1% or Rs. 27.09 million from Rs. 1,876.12 million in FY15 to Rs. 1,849.03 million in FY16. This reduction, in spite of a general inflation in costs, has been driven primarily by the reduction in Distribution costs.

Exceptional Items

The exceptional item of Rs. 61.51 million during the year ended March 31, 2016 rebrsents loss on sale of certain plant and machinery of one of the subsidiaries of the Company, located at Bengaluru. The said machinery was sold since it had become redundant.

Tax Expense is in line with the rates of taxes as per relevant provisions of Income Tax Act.

B. Financial Position

Equity & Liabilities

Share Capital

Pursuant to the Rights Issue as per Letter of Offer dated March 16, 2015, the Company had on April 18, 2015 allotted 108,643,732 Equity Shares of Rs. 1 each, fully paid up, at a price of Rs. 18 per share (including brmium of Rs. 17 per share), resulting in increase in Paid-up Share Capital of the Company to Rs. 470,789,505 comprising of 470,789,505 Equity Shares of Rs. 1 each.

Reserves & Surplus

As detailed above, the brmium of Rs. 17 per share on allotment of Rights Issue shares has resulted in a net increase of Rs. 1,816.29 million in Reserves & Surplus. Further, current year losses and proposed dividend have reduced the reserves by Rs. 154.19 million, thereby limiting the net increase in reserves to Rs. 1,662.10 million, making the Reserves & Surplus balance to Rs. 4,907.47 million in FY16 from Rs. 3,245.37 million in FY15.

Borrowings

On consolidated level, borrowings (long-term and short-term, including current maturities of long-term borrowings) have reduced by Rs. 981.73 million, to the levels of Rs. 3,621.07 million in FY16 from the levels of Rs. 4,602.80 million in FY15. The said amount has been repaid from proceeds of Rights Issue, which is as per terms of the objects of issue.

Other Long-Term Liabilities       

Other Long-Term Liabilities have increased by Rs. 220.02 million, to by Rs. 250.23 million in FY16 against by Rs. 30.21 million in FY15. The sharp increase is on account of addition of Premium payable on redemption of debentures in one of the subsidiaries engaged in Print business.

Provisions

Provisions, both long-term and short-term, have increased to an aggregate of Rs. 313.00 million in FY16 as against Rs. 185.28 million in FY15. The increase of Rs. 127.72 million is primarily driven by provision for proposed dividend (including tax) of Rs. 85.00 million, besides other increase in provision for employee benefits and taxation.

Current Liabilities

Current Liabilities such as Trade Payables and Other Current Liabilities (apart from Current maturities of long-term borrowings) have decline marginally by Rs. 44.12 million, from Rs. 1,412.61 million in FY15 to Rs. 1,368.49 million in FY16.

Assets

Non-Current Assets Fixed Assets

Gross block of fixed assets has reduced from Rs. 7,842.85 million in FY15 to Rs. 7,712.94 million in FY16, the major decrease has been on account of sale of certain plant and machinery of one of the subsidiaries of the Company, located at Bengaluru. The net block has reduced from Rs. 6,295.82 million in FY15 to Rs. 5,830.75 million in FY16, which is primarily on account of debrciation during the year.

Capital work-in-progress has increased to Rs. 120.08 million in FY16, from Rs. 38.74 million in FY15, pending capitalization for WION. 

Non-Current Investments

Non-Current Investments, the balance of which was Rs.  22.27 million in FY15, have been entirely liquidated during the year.

Deferred Tax Assets (net)

Deferred Tax Assets (net) balances have increased to Rs.  1,235.24 million in FY16 from Rs.  1,022.48 million in FY15, an increase of Rs.  212.76 million.

Long-Term Loans and Advances

Long-Term Loans and Advances have increased by Rs.  250.12 million, to Rs.  668.99 million in FY16 from Rs.  418.87 million in FY15, mainly because of capital advances given to vendors for purchase of equipment for Company's new ventures.

Other Non-Current Assets

Other Non-Current Assets have reduced by Rs.  54.23 million, from Rs.  82.26 million in FY15 to Rs.  28.02 million in FY16.

Current Assets

Inventories

Inventories, comprising of Raw stock - tapes in TV Broadcasting business and Newsprint, Ink, Plates, Scrap & Waste Papers and Consumables, stores and spares for Print business, have increased by Rs.  16.66 million. The increase is primarily in inventories of Newsprint, which has been kept at higher levels to take the benefit of economies of scale.

Trade Receivables

Trade Receivables have increased marginally by Rs. 34.66 million, and the average collection period remained in line with brvious year.

Cash and Bank Balances

Cash and Bank Balances have grown significantly by Rs.  448.22 million, from Rs.  399.27 million in FY15 to Rs.  847.49 million in FY16. The steep increase is primarily due to unutilized proceeds of Rights Issue, temporarily deployed in deposits with bank, as well as current account balances.

Short-Term Loans and Advances

Loans & Advances stood at Rs.  1,082.45 million as on March 31, 2016 as against Rs. 453.95 million as on March 31, 2015. The increase of Rs.  628.50 million is due to surplus funds temporarily deployed in loans given as ICDs.