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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.