H T Media Ltd
Directors Reports
Dear Members,
Your Directors are pleased to present their Twenty-first Report, together with the
Audited Financial Statements (Standalone and Consolidated) for the financial year ended on
March 31, 2023.
FINANCIAL RESULTS
Your Company's performance during the financial year ended on March 31, 2023, along
with previous year's figures is summarized below:
(Rs. in Lacs)
Particulars |
Standalone |
Consolidated |
| 2022-23 |
2021-22 |
2022-23 |
2021-22 |
Total Income |
1,01,228 |
87,540 |
1,86,245 |
1,67,785 |
Earnings before finance costs, tax, depreciation and amortization
expense (EBITDA) and exceptional items |
3,853 |
13,996 |
1,299 |
20,398 |
Add: Exceptional Items gain/ (loss) |
(10,346) |
(3,435) |
- |
- |
Less: Depreciation and amortization expense |
8,513 |
9,002 |
13,170 |
13,525 |
Less: Finance costs |
5,869 |
4,405 |
7,708 |
5,459 |
Profit/ (Loss) before share of loss of joint venture and tax |
(20,875) |
(2,846) |
(19,579) |
1,414 |
Less: Tax expense |
|
|
|
|
- Current Tax charge/ (Credit) |
(201) |
202 |
(176) |
773 |
- Deferred tax charge/ (Credit) |
6,841 |
(1,036) |
6,015 |
(1,506) |
Total tax charge/ (credit) |
6,640 |
(834) |
5,839 |
(733) |
Profit/ (Loss) after tax before share of joint venture |
(27,515) |
(2,012) |
(25,418) |
2,147 |
Add: Share of profit/ (loss) of joint venture (net of tax) (accounted
for using equity method) |
- |
- |
243 |
(248) |
Net profit/ (loss) after taxes and share of loss of joint venture |
(27,515) |
(2,012) |
(25,175) |
1,899 |
Add: Other comprehensive income (net of tax) |
|
|
|
|
a) Items that will not be reclassified to profit or loss |
(115) |
73 |
(7,806) |
(3,568) |
b) Items that will be reclassified to profit or loss |
- |
18 |
114 |
152 |
Total Comprehensive loss (Net of tax) |
(27,630) |
(1,921) |
(32,867) |
(1,517) |
Opening Balance in retained earnings |
61,991 |
63,946 |
1,38,058 |
1,36,302 |
Add: Profit/ (Loss) for the year |
(27,515) |
(2,012) |
(22,729) |
1,779 |
Add: Item of other comprehensive income recognized directly in
retained earnings |
|
|
|
|
- Re-measurement of post-employment benefit obligation (net of tax) |
114 |
57 |
- |
(23) |
Total Retained Earning |
34,362 |
^^61,991 |
1,15,329 |
1,38,058 |
DIVIDEND
The Board of Directors have not recommended any dividend on the Equity Shares of the
Company for the financial year ended on March 31, 2023.
The Dividend Distribution Policy framed pursuant to the provisions of Regulation 43A of
the Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (“SEBI Listing Regulations”) is available on the
Company's website at https://www.htmedia.in/wp-content/ uploads/2020/08/Dividend
Distribution Policy.pdf
COMPANY PERFORMANCE AND FUTURE OUTLOOK
A detailed analysis and insight into the financial performance and operations of your
Company for the year under review and future outlook, is appearing under the Management
Discussion and Analysis section, which forms part of this Report.
SCHEME OF ARRANGEMENT
The Composite Scheme of Amalgamation (“the Scheme”) u/s 230-232 of the
Companies Act, 2013 (“the Act”) which, inter-alia, provides for merger of HT
Mobile Solutions Limited (HTMSL) ("transferor entity") with HT Media Limited
(HTML) ("the Company") has not been approved by the Hon'ble National Company Law
Tribunal (NCLT), New Delhi Bench. The Company has filed an appeal with Hon'ble National
Company Law Appellate Tribunal.
RISK MANAGEMENT
Your Company has an established risk management framework to identify, evaluate and
mitigate business risks. The Company has constituted a Risk Management Committee of
Directors which reviews the identified risks and appropriateness of management's response
to significant risks. The details of Risk Management Committee are given in the Corporate
Governance Report which forms part of this Annual Report. A detailed statement indicating
development and implementation of a Risk Management policy of the Company, including
identification of various elements of risk, is appearing in the Management Discussion and
Analysis Report.
EMPLOYEE STOCK OPTION SCHEME
The Company's “HTML Employee Stock Option Scheme-2007” (‘HTML ESOS
2007') and “HTML Employee Stock Option Scheme - 2009” (‘HTML ESOS 2009')
where under the Eligible Employees are entitled to grant of option(s) in relation to the
Company's shares, is in compliance with the SEBI (Share Based Employee Benefits and Sweat
Equity) Regulations, 2021 (“SEBI ESOP Regulations”) and there was no change in
the same during FY-23. Further, during the year under review, no options were granted to
the eligible employees (each option representing one equity share of Rs 2/- each) under
‘HTML ESOS 2007' and ‘HTML ESOS 2009'. 68,112 options were vested and 11,352
options were cancelled under ‘HTML ESOS 2009'.
Voting rights on the shares of the Company held by HT Media Employee Welfare Trust were
not exercised during FY-23. The information required to be disclosed pursuant to the
provisions of the SEBI ESOP Regulations is available on the Company's website. Certificate
dated July 28, 2023 issued by Secretarial Auditor in terms of the SEBI ESOP Regulations is
available for inspection by the members and any member desirous to inspect the same may
send a request to the said effect from his/ her registered email ID to investor@hindustantimes.com.
SUBSIDIARY AND ASSOCIATE COMPANIES
The Scheme of Amalgamation u/s 230-232 of the Act, which provides for amalgamation of
Syngience Broadcast Ahmedabad Limited (SBAL) (wholly owned subsidiary of Next Radio
Limited) with Next Radio Limited (NRL) (“Scheme”), has been sanctioned by the
NCLT, Mumbai Bench vide its order delivered on June 10, 2022 ("Order"), with
appointed date as April 01, 2021. The certified true copy of the Order was received on
July 18, 2022. As per the Order, the Scheme became effective on July 20, 2022
i.e. upon filing of the copy of the Order with the Registrar of Companies, NCT of
Mumbai.
The transaction as per the Scheme of Amalgamation is in the nature of business
acquisition under Common Control as defined under Ind AS 103 “Business
Combinations”. Accordingly, the Scheme has been given effect from April 01, 2021 i.e.
acquisition date under common control business combination accounting. The effect of such
Scheme of Arrangement has been accounted for ‘in accordance with the Scheme' and
‘in accordance with accounting standards'.
There is no impact on Capital Reserve as on April 01, 2021 since net assets including
reserves of SBAL are equivalent to amount of investment by NRL in SBAL being
de-recognised. Further, there is no impact of the comparative period numbers since SBAL
being wholly owned subsidiary of NRL.
In terms of the applicable provisions of Section 136 of the Act, Financial Statements
of subsidiary/ associate companies for the financial year ended on March 31, 2023 are
available for inspection at Company's website viz. www.htmedia.in.
A report on the performance and financial position of each of the subsidiary /
associate companies in prescribed Form AOC-1, is annexed to the Consolidated Financial
Statements and hence, not reproduced here. The ‘Policy for determining Material
Subsidiary(ies)', is available on the Company's website at https://www.htmedia.in/
wp-content/uploads/2020/08/Policy Form Determining Material Subsidiary.pdf.
The contribution of subsidiary/ associates/ joint ventures companies to the overall
performance of your Company is outlined in note no. 48 of the Consolidated Financial
Statements for the financial year ended March 31, 2023.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
Directors
Appointments:
The Board based on the recommendation of Nomination and Remuneration Committee,
appointed Shri Sandeep Singhal (DIN: 00422796) as an Independent Director of the Company
with effect from August 05, 2022. The Members of the Company on September 22, 2022
approved the appointment of Shri Sandeep Singhal as an Independent Director for a period
of 5 years effective August 05, 2022 upto August 04, 2027.
On the recommendation of Nomination & Remuneration Committee, the Board at its
meeting held on May 18, 2023, approved the re-appointment of Smt. Shobhana Bhartia
(DIN:00020648) as Chairperson and Editorial Director (Managing Director under the Act)
w.e.f. July 01, 2023 for a period of five years. The re-appointment is subject to the
approval of the Members of the Company.
Further, on the recommendation of Nomination & Remuneration Committee, the Board at
its meeting held on May 18, 2023 approved the re-appointment of Shri Praveen Someshwar
(DIN: 01802656), as Managing Director and Chief Executive Officer (Key Managerial
Personnel under the Act) w.e.f. August 01, 2023 for a period of 5 years, subject to
approval of the Members of the Company.
The disclosures required pursuant to Regulation 36 of the SEBI Listing Regulations and
the Secretarial Standards on General Meeting (‘SS-2') with respect to proposed
re-appointment of Directors are given in the Notice of ensuing AGM, forming part of the
Annual Report.
Re-appointment of Director retiring by rotation:
In accordance with the provisions of the Act, Shri Praveen Someshwar (DIN: 01802656)
retires by rotation at the ensuing AGM and being eligible, offers himself for re-
appointment. The Board commends re-appointment of Shri Praveen Someshwar, for approval of
the Members at the ensuing AGM.
The disclosures required pursuant to Regulation 36 of the SEBI Listing Regulations and
the Secretarial Standards on General Meeting ('SS-2') with respect to proposed
reappointment of Director retiring by rotation are given in the Notice of ensuing AGM,
forming part of the Annual Report.
Cessation:
During the year under review, Shri Vikram Singh Mehta ceased to be the Independent
Director of the Company with effect from June 01, 2022 due to resignation owing to other
commitments. Further, there was no other material reason of his resignation. The Directors
placed on record their sincere appreciation for the stellar contributions made by him as a
Member of the Board.
Independent Directors Declaration:
The Independent Directors of the Company have confirmed the following:
a. they meet the criteria of independence as prescribed under both, the Act and SEBI
Listing Regulations;
b. they abide by the Code of Independent Directors as provided in the Schedule IV to
the Act; and
c. they have registered themselves on the data bank of Independent Directors maintained
by Indian Institute of Corporate Affairs.
In the opinion of the Board, there has been no change in the circumstances which may
affect their status as Independent Directors of the Company. Further, the Board is of the
opinion that the Independent Directors of the Company hold highest standards of integrity
and possess requisite expertise and experience required to fulfil their duties as
Independent Directors.
Board Diversity:
Your Company recognizes that Board diversity is a prerequisite to meet the challenges
of globalization, ever- evolving technology and balanced care of all stakeholders and
therefore has appointed Directors from diverse backgrounds including Woman Director.
Code of Conduct:
The Company is guided by the Code of Conduct in taking decisions, conducting business
with a firm commitment towards values, while meeting stakeholders' expectations. This is
aimed at enhancing the organization's brand and reputation. It is imperative that the
affairs of the Company are managed in a fair and transparent manner. Further, all the
Directors have confirmed adherence to the Company's ‘Code of Conduct'.
KEY MANAGERIAL PERSONNEL
In terms of Section 203 of the Act, the Key Managerial Personnels (KMPs) of the Company
are Shri Praveen Someshwar, Managing Director & Chief Executive Officer; Shri Piyush
Gupta, Group Chief Financial Officer and Shri Manhar Kapoor, Group General Counsel and
Company Secretary.
During the year under review, Shri Dinesh Mittal superannuated from the position of
Group General Counsel & Company Secretary w.e.f. May 31, 2022 (closing business hours)
and Shri Manhar Kapoor was appointed as Group General Counsel & Company Secretary
w.e.f. June 01, 2022.
PERFORMANCE EVALUATION
In line with the requirements under the Act and SEBI Listing Regulations, the Board
undertook a formal annual evaluation of its own performance, and that of its Committees,
Chairperson & Directors.
The Nomination & Remuneration Committee framed questionnaires for evaluation of
performance of the Board as a whole, Board Committees, Directors and the Chairperson.
The Directors were evaluated on various parameters such as value addition to
discussions, level of preparedness, willingness to appreciate the views of fellow
Directors, commitment to processes which includes risk management, compliance and control,
commitment to all stakeholders (shareholders, employees, vendors, customers etc.),
familiarization with relevant aspects of Company's business/ activities, amongst other
matters. Similarly, the Board as a whole was evaluated on parameters which included its
composition, strategic direction, focus on governance, risk management and financial
controls.
A summary report of the feedback of Directors on the questionnaire(s) was considered by
the Nomination & Remuneration Committee and the Board of Directors. The Board would
endeavour to use the outcome of the evaluation process constructively, to improve its own
effectiveness and deliver superior performance.
A separate meeting of Independent Directors was also held to review:
• Performance of the Non - Independent Directors and the Board as a whole.
• Performance of the Chairperson of the Company considering the views of the
Directors of the Company.
• The quality, quantity and timeliness of flow of information between the Company
Management and the Board that is necessary for the Board to effectively and reasonably
perform their duties.
AUDIT & AUDITORS
Statutory Auditor
B S R and Associates, Chartered Accountants [Firm Registration No. 128901W]
(“BSR”) were appointed as Statutory Auditor of the Company, for a term of 5
(five) consecutive years, at the Annual General Meeting held on September 26, 2019.
The Auditor's Report of BSR on Annual Financial Statements for the financial year ended
on March 31, 2023 does not contain any qualification, reservation or adverse remark or
disclaimer.
Secretarial Auditor
Pursuant to the provisions of Section 204 of the Act and rules made thereunder, the
Board of Directors had appointed Shri N.C. Khanna, Company Secretary-inPractice (C.P. No.
5143) as Secretarial Auditor, to conduct Secretarial Audit for the financial year ended
March 31, 2023. Secretarial Audit Report dated July 28, 2023 is annexed herewith as
“Annexure - A”. The Secretarial Audit Report does not contain any qualification,
reservation or adverse remark or disclaimer.
Cost Auditor
In terms of the provisions of Section 148 of the Act read with the Companies (Cost
Records and Audit) Rules, 2014, and on the recommendation of Audit Committee, the Board of
Directors had appointed Ramanath Iyer & Co., Cost Accountants (Firm Registration No.
000019) as Cost Auditor to carry out cost audit of records maintained by the Company in
relation to its FM Radio business for the financial year ended on March 31, 2023.
In compliance with the provisions of Section 148 of the Act, the Company has prepared
and maintained its cost records for the financial year 2022-23.
RELATED PARTY TRANSACTIONS
All contracts/ arrangements/ transactions entered into by the Company with related
parties during the year under review, were in ordinary course of business of the Company
and on arms' length terms. The related party transactions were placed before the Audit
Committee for review and/or approval. During the year, the Company did not enter into any
contracts/ arrangements/ transactions with related party, which could be considered
material in accordance with the Company's ‘Policy on Materiality of and dealing with
Related Party Transactions' and accordingly, the disclosure of related party transactions
in Form AOC-2 is not applicable. The aforesaid Policy is available on the Company's
website at https://www. htmedia.in/wp-content/uploads/2020/08/Policy materiality
dealing Related Party Transactions.pdf.
Reference of Members is invited to note nos. 36 and 36A of the Standalone Financial
Statements, which sets out the related party disclosures as per IND AS 24.
DEBENTURES
Company's Non-Convertible Debentures (“NCDs”) are listed on BSE Limited.
During the year under review, the Company has not allotted any NCDs.
CORPORATE SOCIAL RESPONSIBILITY
As a responsible corporate citizen, your Company is committed to undertake socially
useful programmes for welfare and sustainable development of the community at large. The
Corporate Social Responsibility (CSR) Committee of Directors is in place in terms of
Section 135 of the Act. The composition, terms of reference and other details of the CSR
Committee are provided in the ‘Report on Corporate Governance', which forms part of
this Annual Report. The CSR Committee has formulated and recommended to the Board, a CSR
Policy outlining CSR projects/activities to be undertaken by the Company during the year
under review. The CSR Policy is available on the Company's website at https://www.htmedia.in/wp-content/uploads/2020/08/HT
Media CSR Policy-2021.pdf and there was no change in the same during the year under
review.
The Company has not yielded any profits during the previous three financial years.
Hence, in terms of Section 135 of the Act, the Company was not required to spend any
amount on CSR activities.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 134 of the Act, your Directors state that:
i. in the preparation of the annual accounts for the financial year ended on March 31,
2023, the applicable Accounting Standards have been followed and there are no material
departures;
ii. such accounting policies have been selected and applied consistently and judgments
and estimates have been made; that are reasonable and prudent so as to give a true and
fair view of the state of affairs of the Company as on March 31, 2023; and of the loss of
the Company for the year ended on March 31, 2023;
iii. proper and sufficient care has been taken for the maintenance of adequate
accounting records in accordance with the provisions of the Companies Act, 2013, for
safeguarding the assets of the Company and for preventing and detecting fraud and other
irregularities;
iv. the annual accounts have been prepared on a ‘going concern' basis;
v. proper internal financial controls were in place and that such internal financial
controls were adequate and operating effectively; and
vi. systems have been devised to ensure compliance with the provisions of all
applicable laws, and that such systems were adequate and operating effectively.
DISCLOSURES UNDER THE ACT
Borrowings and Debt Servicing: During the year under review, your Company has met all
its obligations towards repayment of principal and interest on loans availed.
Particulars of loans given, investments made, guarantees/ security given: Details of
investments made and loans/ guarantees/security given, as applicable, are given in the
note nos. 6A, 6B, 35, 36 and 47 of the Standalone Financial Statements.
Board Meetings: Yearly calendar of Board meetings is prepared and circulated in advance
to the Directors. During the financial year ended on March 31, 2023, the Board met four
times on May 27, 2022, August 05, 2022, November 07, 2022 and February 14, 2023. For
further details of these meetings, Members may please refer Report on Corporate Governance
which forms part of this Annual Report.
Committees of the Board: At present, seven standing Committees of the Board of
Directors are in place viz. Audit Committee, Nomination & Remuneration Committee, CSR
Committee, Banking & Finance Committee, Investment Committee, Stakeholders'
Relationship Committee and Risk Management Committee. During the year under review,
recommendations of the respective Committees were accepted by the Board. For further
details of the Committees of the Board, Members may please refer ‘Report on Corporate
Governance' which forms part of this Annual Report.
Remuneration Policy: The Remuneration Policy of the Company on appointment and
remuneration of Directors, Key Managerial Personnel & Senior Management, as prescribed
under Section 178(3) of the Act and SEBI Listing Regulations, is available on the
Company's website at https://www.htmedia.in/wp-content/uploads/2020/08/ Remuneration
Policy 16-Jan-19.pdf. The Remuneration Policy includes, inter-alia, criteria for
appointment of Directors, KMPs, Senior Management Personnel and other covered employees,
their remuneration structure and disclosures in relation thereto. There was no change in
the remuneration policy during the year under review.
Vigil Mechanism: The Vigil Mechanism, as envisaged in the Act & rules made
thereunder and SEBI Listing Regulations, is addressed in the Company's “Whistle
Blower Policy”. In terms of the Policy, Directors/ employees/stakeholders of the
Company may report concerns about unethical behaviour, actual or suspected fraud or any
violation of the Company's Code of Conduct and any incident of leak or suspected leak of
Unpublished Price Sensitive Information (UPSI). The Policy provides for adequate
safeguards against victimization of the Whistle Blower. The Policy is available on the
Company's website at https://www.htmedia.in/wp-content/uploads/2020/08/ Whistle Blower
Policy.pdf.
Particulars of employees and related disclosures: In
accordance with the provisions of Section 197(12) of the Act read with Rule 5(2) &
(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014,
details of employees' remuneration forms part to this Report. In terms of the provisions
of Section 136(1) of the Act, the Board's Report is being sent to the Members without this
annexure. Having regard to the provisions of the second proviso to Section 136(1) of the
Act, the Annual Report excluding the aforesaid information is being sent to the Members of
the Company. Any Member interested in obtaining such information may address their email
to investor@hindustantimes.com.
Disclosures under Section 197(12) of the Act read with Rule 5(1) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed herewith as
“Annexure - B”.
Annual Return: In terms of Section 92(3) read with Section 134(3)(a) of the Act, the
Annual Return in form MGT-7 for FY-23, is available on the website of the Company at https://www.htmedia.in/wp-content/
uploads/2023/09/mgt-7.pdf
Corporate Governance: The report on Corporate Governance in terms of the SEBI Listing
Regulations, forms part of this Annual Report. The certificate issued by Company
Secretary-in-Practice is annexed herewith as “Annexure - C”.
Conservation of energy, technology absorption and foreign exchange earnings &
outgo: The information on conservation of energy, technology absorption and foreign
exchange earnings & outgo is annexed herewith as “Annexure - D”.
SECRETARIAL STANDARDS
During the year under review, Secretarial Standards (i.e. SS-1 and SS-2) relating to
‘Meetings of the Board of Directors' and ‘General Meetings', have been followed
by the Company. Further, the Company has in place proper systems to ensure compliance with
the provisions of the applicable secretarial standards issued by The Institute of Company
Secretaries of India and such systems are adequate and operating effectively.
PREVENTION OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
Your Company adheres to a strict policy to ensure the safety of women employees at
workplace. The Company is fully compliant with the provisions of Sexual Harassment of
Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and rules made
thereunder, and has constituted an Internal Committee (IC) to redress complaints regarding
sexual harassment. IC is in place for all wo rks an d offices of the Company to redress
complaints received regarding sexual harassment. The Company's policy in this regard, is
available on the employee intranet portal. The Company conducts regular training sessions
for employees and members of IC and has also rolled-out an online module for employees to
increase awareness. The Company had received one complaint in FY 202122, which was
disposed of during the year under review. Further, no complaint was received during the
year under review.
GENERAL
Your Directors state that during the year under review:
1. There were no deposits accepted by the Company under Chapter V of the Act.
2. The Company had not issued any shares (including sweat equity shares) to directors
or employees of the Company under any scheme.
3. There was no change in the share capital of the Company.
4. The Company had not issued any equity shares with differential rights as to
dividend, voting or otherwise.
5. The Company has not transferred any amount to the General Reserve.
6. No material changes/commitments of the Company have occurred after the end of the
Financial Year 2022-23 and till the date of this report, which affect the financial
position of your Company.
7. No significant or material order was passed by any Regulator, Court or Tribunal
which impact the ‘going concern' status and Company's operations in future.
8. Statutory Auditor, Secretarial Auditor and Cost Auditor have not reported any
instance of fraud to the Audit Committee pursuant to Section 143(12) of the Act and rules
made thereunder.
9. There was no change in the nature of business of the Company.
10. There were no proceedings initiated/ pending against your Company under the
Insolvency and Bankruptcy Code, 2016.
11 There was no instance of onetime settlement with any Bank or Financial Institution.
12. The Company has not made any private placement of shares or fully or partially or
optionally convertible debentures during the year.
13. The Company has not made any preferential allotment or qualified institutions
placement as specified under Regulation 32(7A) of the SEBI Listing Regulations during the
year.
INTERNAL FINANCIAL CONTROL
Your Company has in place, adequate internal financial controls with reference to the
financial statements, which helps in periodically reviewing the effectiveness of controls
laid down across all critical processes. The Company also has in place Internal control
system which is supplemented by an extensive program of internal audits and their review
by the Management. The in-house internal audit function, suppo rted by professional
external audit firms, conduct comprehensive risk focused audits and evaluates the
effectiveness of the internal control
structure across locations and functions on a regular basis. The Company also has an
online Compliance Management Tool with a centralized repository to cater to its statutory
compliance requirements.
ACKNOWLEDGEMENT
Your Directors place on record their sincere appreciation for the co-operation extended
by all the stakeholders, including Ministry of Information & Broadcasting, regulatory
authorities and other government authorities, shareholders, investors, readers,
advertisers, browsers, listeners, customers, banks, vendors and suppliers.
Your Directors also place on record their deep appreciation of the committed services
of the executives and employees of the Company.
For and on behalf of the Board
|
(Shobhana Bhartia) |
Place: New Delhi |
Chairperson & Editorial Director |
Date: July 28, 2023 |
DIN:00020648 |
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