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Sun TV Network Limited

Annual Report 2009

Topics Of DiscussionAnnual ReportContentsBenefitsLimitations

What Is Annual ReportIt is a comprehensive report on a company's

activities throughout the preceding year. It is intended to give shareholders and other

interested people information about the company's activities and financial performance.

Companies listed on a stock exchange are required to report at frequent intervals.

The details provided are used to understand the company's financial position and future direction.

Typically annual reports include:Chairman's reportCEO's reportAuditor's report on corporate governanceMission statementCorporate governance statement of

complianceStatement of directors' responsibilitiesInvitation to the company's AGM

As well as financial statements including:Auditor's report on the financial statementsBalance sheetStatement of retained earningsIncome statementCash flow statementNotes to the financial statementsAccounting policies

Contents Of our Annual ReportNoticeDirectors’ ReportManagement Discussion & AnalysisCorporate Governance ReportAuditor’s ReportFinancial Statements

NoticeIndicates:DateTimeLocation of AGMBusinesses to be transacted:

Ordinary- eg. Consider BS & P/L Acc, declare dividend, appointments of directors & auditors, their remunerations, etc.

Special- eg. Passing resolutionsNotes

Directors’ ReportFinancial Results

Total Income- 17.88%Profit Before Taxes- 17.22%Profit After Tax- 19.11%

Final Dividend- 50% i.e. Rs 2.5/eq. share of face value of Rs. 5 each

Business OverviewOne of the largest Television Broadcasters in

IndiaOperates 20 Satellite Television ChannelsAirs 42 FM radio stations

Channels launched in 2008-09 Adithya Ushe TV Navvulu Chintu Kushi

New division Sun Pictures ventured into distribution & production of movies.

Directors’ Responsibility StatementAssures the use of fair practices

Directors’ Report

DirectorsChange of Company’s Registered OfficeCorporate GovernanceNumber of Employees- 1545Corporate Social Responsibility- Donation of

Rs. 17.5 millions to Sun FoundationSubsidiary Companies

Directors’ Report

IndustryIndian Entertainment & Media industry (IEM)

is the fastest growing industry.It consists of film, television, advertising, print

media, music, etc.Television has been a major contributor.DTH service has high growth prospects.Mobile TV will fuel the growth era with the

advent of 3G.Many global production units are entering the

Indian film industry.Sun Network dominates in South due to its

pricing & quality content.

Management Discussion & Analysis

OpportunitiesDigitization of television industry.DTH segment growth will increase

subscription revenue.Increased overseas viewership will attract

foreign investment.Radio broadcasting has huge growth

prospects.

Management Discussion & Analysis

ThreatsAdvertising income could declineHigh audience share is difficult to maintainCompetition & increasing prices making it

difficult to acquire desired programming & artistic talent

Sun Network is a regional broadcasterTechnology failures

Management Discussion & Analysis

OutlookOperates in single segment broadcastingHas dominant market share in Tamil Nadu,

Kerala, Karnataka & Andhra PradeshPresence across many genres ensure continued

& sustained viewershipPopular programs & dominant share of

audience viewership has given tremendous pricing power

Growth of DTH is good for the company

Management Discussion & Analysis

Earnings 2007-08 2008-09Total Income(million) 9259.9

10915.2Profit Before Tax(million) 5682 6661Profit After Tax(million) 3669 4371Dividend(million) 1152.6 1152.7

Financial PositionShareholder’s Funds(million) 14706.7 17925.1Loan Funds(million) Nil Nil

RatiosEarnings per share(Rs.) 9.31 11.09

Financial Review

Company’s Philosophy on Code of GovernanceIt is about commitment to values & ethical business

conductFocus on maximizing shareholder value legally, ethically &

on a substantial basisEnsuring fairness to every stakeholder, customers,

employees, investors, vendor-partners, the govt. & the community

Objectives: Transparency, Professionalism & Accountability

Board of DirectorsComposition: 4 Non-executive & 2 Executive DirectorsBoard Meetings: 7Code of Conduct: Declaration has been providedPrevention of Insider TradingSecretarial Standards relating to Board Meetings

Report on Corporate Governance

Audit CommitteeRemuneration Committee & Policy- It

recommends:Appointment/reappointment of DirectorsInduction of Board members into various

committeesRevision in total remuneration package

Investor/ Shareholder’s Grievance Committee:Redressal of complaints29 complaints dealt

Share Transfer & Transmission CommitteeDisclosure

Report on Corporate Governance

Shareholders’ InformationRegistered Office of the companyForthcoming Annual General MeetingFinancial YearBook Closure DatesDividendInstructions to Shareholders

Shareholders holding shares in physical form Shareholders holding shares in demat form

Listing on Stock Exchanges NSE: Sun TV (EQ) BSE: Sun TV (532733)

Depository Connectivity CDSL, NSDL ISIN: INE424H01027

Market Price Data

Report on Corporate Governance

Shareholders’ Information (Cont.)Share Transfer ProcessShareholding PatternShareholding DistributionDematerialization of SharesOutstanding GDRs/ADRsAddress for correspondence

Compliance Officer Registrars & Share Transfer Agents

Confirmation on Code of ConductAuditors’ Certificate

Report on Corporate Governance

Balance Sheet, Profit & Loss Account & Cash Flow Statement have been audited

Financial statements are free of material misstatement

Audit includes:Examining evidence supporting the amounts &

disclosures in financial statementsAssessing the accounting principles used &

significant estimates made by ManagementEvaluating overall financial statement

presentation

Auditors’ Report

The advantages of using annual reports are:It can contain detailed information such as

figures.Visual information can be used e.g., tables,

charts etc. A written record of the business is kept at a

particular moment in time. Shows the public that the organization does

keep in touch with what they want.

The disadvantages are:Rival companies can gain access to this

information to increase competition between the organizations.

A report is a formal method of communication and is therefore time consuming to prepare.

If a reader of the report wanted to give feedback, then the process for this would be long causing the barriers of communication to occur.

Annual reports have to be produced every year even if the company had a bad year.