indian express newspapers mumbai ltd 2005

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INDIAN EXPRESS NEWSPAPERS ( M U M B A I ) LIMITED

47TH ANNUA L REPORT

c r e t a r y

ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2005

w w w . r e p o r t j u n c t i o n . c o m
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INDIAN EXPRESS NEWSPAPERS (MUMBAI) LIMITED

BOARD OF DIRECTORS

Shri Vlvek Goenka CHAIRMAN & MANAGING DIRECTORMs. Vaidehi Thakar W HO LE-TIME DIRECTORShri Ashok Pradhan WHOLE-TIME DIRECTOR

EDITOR IN CHIEF AND GROUP CEOShri Shekhar Gupta

SECRETARYShri N. Hariharan

BANKERS

State Bank of IndiaVijaya Bank

Punjab National BankUTI Bank Ltd.

Indian Overseas Bank

AUDITORSM/s V. Sankar Aiyar & Co.

Chartered Accountants,

M u m b a i .

REGISTERED OFFICEExpress Towers,Nariman Point

M u m bay 400 021

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INDIAN EXPRESS NEWSPAPERS (MUMBAD LTD

DIRECTORS' REPORT TO THE SHARE HOLDERS

Your Directors have pleasurein presenting the Audited Balance Sheetof the Company as

at 31* March, 2005 and the Profit and Loss Accountfor the period from 1*April, 2004to 31*March, 2005 together withthe attached statementsand Auditors' Report. Duringthe year end the name of the company was changed to INDIAN EXPRESSNEWSPAPERS (MUMBAI)LIMITED.

The summarised financial results for the 12 months period ended31 st March, 2005 andfor six months ended 31* March, 2004 are as follows:

1) Financial Results

For the yearended 31/3/2005(12 months)

For the periodEnded 31/3/2004(Six Months)

Profit before depreciationand Transfer toReserve

Less: DepreciationProfit after depreciation

Add: Excess provision for taxationwritten back

Add: Balance b/f from earlier yearCarried to Balance Sheet

Rs.

1949.87

568.981380.89

59.751440.64

M 14965.26(-) 13524.62

Rs.

1604.64

281.191323.45

0.001323.45

(-) 16288.71(- ) 14965.26

The operational profit for the year was Rs. 1380.89 lacs w hich alongwith tax provisionno longer required of Rs.59.75 lacs together with the previous year's balanceof Rs.

14965.26 lacs loss, resulted in an accumulated lossof Rs. 13524.62 lacs which is carriedto Balance Sheet.

The turnover for the year of 12 months was Rs.280.44 crores as compared to Rs. 134.53crores for the sixmonths period ending31* March 2004. During the year, the Companymade a cash profit of Rs. 19.50 crores as compared to Rs. 16.05 crores for the sixmonths period earlier. The operations have moreor less become steady duringthe year.

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The Company has purchased its own shares of the value of Rs.10,00,000/-represented by 10,000 shares for a price of Rs.15 crores. The reduction in sharepremium account of Rs. 14,90,00,000 is accounted for on this buy back of shares.

The Board does not recommend payment of any dividend.

21 Editorial Leadline Wav

The year has seen major changes happening at the Editorial Desks of ExpressGroup Publication. "Journalism of Courage", the Company's mission is not justabout reporting fearlessly on the day's stories. It's about exploring issues in depthand pursuing stories till they result in actions that make a difference to social life.Company's Journalists have been the first to bring to light stories that others haveeither looked away from or are in the dark about.

The Indian Express 1 sustained coverage of the murder of IIT Engineer promptedthe Supreme Court to force the Government to commit to a law to protectwhistteblowers. And just last month, Indian Express exposed how flood moneywas siphoned off by officials and bureaucrats in Bihar prompted a probe at thehighest level. The company reporters have been, once again, the first ones to bringto light the dwindling tiger count - a series that has got the Prime Ministerinvolved. "The Economist" acknowledged as to how the series on a crumblingBangalore prodded the Government to act. The exposure of malpractices inadmissions by Educational Institutions in Maharashtra by Indian Express led theauth orities to act

The heritage series, a 10-part investigation into India's vanishing monument s, has

wok en up the powers-that-be into taking a second, serious look into the future, orlack of it, of the country's rich history. Every Express story not only focus es onthe problem but it also prescribes what needs to be done, identifies the agents ofchange and helps bring it about.

3) Brand Promotion

'The Indian Express" put together a nationwide campaign "Show them theFinger" to motivate the educated population of India to come out of their inertiaand go out and vote at the election. The first Golf Tournament in the Kashmirvalley in 20 years in Srinagar and Gulmarg was launched which later went across

to 10 other major cities across the country. The first Ramnath Goenka India PressPhoto Awards was launched in recognition of Press Photo-Journalists from acrossthe country in honour of founder Shri Ramnath Goenka in his centenary year. TheWorld Press Photo was further developed into an Annual event on the event mapof the country and was brought to India yet again by The Indian Express. Later inthe year, The Indian Express also introduced the biggest honour in Journalismwith The Ramnath Goenka Awards for Excellence in Journatism coming intoplace.

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The Indian Express also continued its contribution in the Corporate SocialResponsibility segment with significant contributions to the Mumbai Bond) Blastvictims, Tsunami victims, Riot victims, etc and also established ChandigarhWar Memorial in honour of the soldiers who laid down their lives during theKargilWar.

The Indian Express Group saw a strong visibility in the market. The company hasbroken a campaign on "India Empowered" in the Indian Express recently.

Loksatta has always had a close interaction with its readers and has conductedvarious social activities in cultural, entertainment and educational fields with aview to bring the brand closer to readers and help build a relationship with themover the time. Circulation of Loksatta has substantially improved in Aurangabad,Nagpur and Nasik and the product has also undergone upgrade and changes, itlooks much better and brighter than before.

4) New Launches & Editions:

Loksatta launched the following supplements to cover extensively readers fromvarious locations in Maharashtra :

1) Aurangabad Vrutant along with Mumbai edition2) Ahemadnagar Vrutant along with Ahemadnagar edition3) Uttar Maharashtra Vrutant with Mumbai edition4) Relaunch of Nagpur edition with Nagpur and VidharbhaVrutant.

A special supplement "Viva" for the Modern Marathi women of today waslaunched on 16 th June, 2005.

New editions of Indian Express were launched in Kolkata and Lucknow and Newedition of Financial Express was launched in Hyderabad during the year. TheCompany also commenced printing of Loksatta Aurangabad copies atAurangabad for convenience of readers.

5) Technology

The year ahead looks full of promise as the company has proposed to install new

machinery at various centers nationally and though now equipped with the newtechnology, the company is constantly upgrading it and going ahead withcomputer-to-printers technology (CTP) and workflow digitization. TB abilityto print color advertisements with new technology will contribute to furtherrevenues.

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The Company has maintained harmonious industrial relations with the staff andthe workmen and there has been no stoppage of work or any loss of man days.

12) Replies To Qualifications Contained In The Auditors' Report:

With reference to the comments of the Auditors in para 3 of their report, thefollowing explanations are offered:

Audit para 3(g)(i)

Regarding the no n provision of wealth tax liability amounting to Rs. 318 lacs forthe earlier years, no demand has been served on the Company as explained inNote 13 of Schedule Q(b) as the vires of the provisions of section 40 of theFinance Act, 1983 has been challenged in the Bombay High Court. The HighCourt has passed an interim order that up to the assessment year 1986-87, thereturns be filed and the assessment be completed by the Assessment Officer butthe demand notice cannot be served on the Assessee. Accordingly, no demandshave been raised on the Company and in the absence of such demands, theliability, if any, can not be quantified. The stay granted by the Court continues.

Audit para 3(g)(ii)

Sale of newspaper to hawkers at Delhi, Chandigarh, Pune and Nagp ur branchesbeing accounted for on net basis as referred to in Note 11 of Sched ule -QB isconsistent with the practice followed by the Company and other contemporarynewspaper establishments.

Audit para 3(g)(iii)

HDFC Ltd. discounted the future rent receivables and funded the Company. Thiswas accounted as income in $e year jn which it was funded and hence it is notshown as due to HDFC. Such amount for the period of six months amounts to Rs.758.61 lacs (refer Item No. 2- Schedule QB) and the same has not been taken as

income in this period. If this has been considered, the profits for the year ending31" March 2005, would have been higher by Rs. 758.61 lacs.

The Auditor has subjected his report to Notes in paras 2,6,9(b), 1 1 and 19(4) ofSchedule Q(B). They are self explanatory and need no further explanations.
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indian express newspapers mumbai ltd 2005

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