T.V. Today Network Ltd
Directors Reports
Your Directors have the pleasure of presenting their Twenty First (21st) Annual Report
together with the Audited Financial Statements for the year ended March 31, 2020.
FINANCIAL RESULTS
In compliance with the provisions of the Companies Act, 2013 (‘Act'), and
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI
Listing Regulations') the Company has prepared its standalone and consolidated finan-cial
statements as per Indian Accounting Standards (Ind AS) for the FY 2019-20. The highlights
of the standalone and consolidated financial results of the Company for the FY
2019-20 and FY 2018- 19 are as under:
|
|
|
|
( Rs in Crores) |
| Particulars |
(Standalone) |
(Consolidated) |
|
Year Ended March 31, 2020 |
Year Ended March 31, 2019 |
Year Ended March 31, 2020 |
Year Ended March 31, 2019 |
| Income from operations |
856.37 |
739.00 |
857.22 |
742.24 |
| Other income |
42.20 |
36.36 |
42.31 |
36.38 |
| Other Gain/ (losses) (net) |
0.99 |
0.30 |
0.99 |
0.30 |
| Profit before Exceptional items, Finance Costs, Depreciation and Amortization |
261.10 |
234.97 |
259.26 |
236.26 |
| Finance Costs |
2.83 |
0.82 |
2.83 |
0.82 |
| Depreciation and Amortisation |
38.50 |
31.51 |
38.50 |
31.51 |
| Profit before exceptional items and tax |
219.77 |
202.64 |
217.93 |
203.93 |
| Exceptional Items |
- |
- |
- |
- |
| Profit before tax |
219.77 |
202.64 |
217.93 |
203.93 |
| Tax expense |
77.61 |
72.60 |
78.57 |
72.83 |
| Net Profit |
142.16 |
130.04 |
139.36 |
131.10 |
| Attributable to: |
|
|
|
|
| Owners |
142.16 |
130.04 |
139.36 |
131.10 |
| Non-controlling interests |
N/A |
N/A |
- |
- |
| Balance amount brought forward |
764.33 |
650.09 |
767.22 |
651.92 |
| Amount available for appropriation |
906.49 |
780.13 |
906.58 |
783.02 |
| Transactions with Non-controlling interests |
- |
- |
- |
- |
| Other comprehensive income for the year |
(0.79) |
0.38 |
(0.79) |
0.38 |
| Transfer to General Reserve |
- |
- |
- |
- |
| Change in opening retained earnings on account Ind AS-116 |
(2.52) |
- |
(2.52) |
- |
| Dividend on equity shares for previous year |
(13.42) |
(13.42) |
(13.42) |
(13.42) |
| Dividend distribution tax on dividend for previous year |
(2.76) |
(2.76) |
(2.76) |
(2.76) |
| Interim dividend on equity shares for current year |
(119.32) |
- |
(119.32) |
- |
| Dividend distribution tax on Interim dividend on equity shares for current year |
(24.53) |
- |
(24.53) |
- |
| Balance Carried forward |
743.15 |
764.33 |
743.24 |
767.22 |
Note: The above statements and the financial figures given under the head
‘Financial Results' are extracted from the Standalone and Consolidated Financial
Statements which have been prepared in accordance with the Indian Accounting Standards
(Ind-AS) as notified under Section 133 of the Companies Act, 2013, read with Companies
(Indian Accounting Standards) Rules, 2015 and relevant amendment rules thereafter and
other recognized accounting practices and policies, to the extent applicable. Further, due
to acquisition of newspaper undertaking of Mail Today Newspapers Private Limited and
amalgamation of India Today Online Private Limited during the financial year w.e.f
appointed date i.e. January 1, 2017 previous year's figures have been restated.
PERFORMANCE
On standalone basis your Company's total income for FY 2019-20 at Rs 899.56 Crores has
been higher by 15.97 % over last year ( Rs 775.66 Crores in FY 2018-19). Profit before tax
has been Rs 219.78 Crores as compared to Rs 202.64 Crores in the last year. Profit after
tax has been Rs 142.16 Crores as compared to Rs 130.04 Crores during the last year.
Your Company's business depends heavily on revenues from advertisements. Due to its
impeccable reputation, sustained leadership position of the flagship channel "Aaj
Tak", continuing improvement in viewership of English news channels "India
Today" increased focus on "Tez" and rapidly growing digital business and
confidence reposed by its viewers and clients, managed to achieve a highly satisfactory
performance.
PANDEMIC COVID-19
Since March 2020, when the Coronavirus pandemic forced the Central and State
Governments to declare successive phases of Lockdown, the Company has taken comprehensive
measures to promote business continuity along with rigorous staff health and safety
protocols. All media brands and programming services are on with the same commitment to
Gold Standard of Journalism and are aided by the initiatives mentioned below:
Reduced sta_: Despite being a 24*7 essential service, our offices are operating
with an In-O_ce Workforce of 10% to 25% at peak load. Substantial staff has been deputed
to Work from Home with computing equipment and connectivity provided. Reporting staff is
Working From the Field.
Social Distancing through "No Mixing": Further, Office staff has been
divided between offices. In the eventuality of sealing or quarantining on a large scale,
employees from another office's premises may take over. Anchors have been provided home
broadcast equipment. No mixing of staff is permissible between offices, work groups, or
shifts. This is to contain potential spread. Testing of emergency transmission services
and switchovers has been done multiple times. No in-person meetings may be done (even in
office); videoconferencing or teleconferencing is used.
Social Distancing through changes in office arrangements: Distance between employee
seating areas has been kept. A strict zoning policy is followed in office (e.g. no mixing
on floors, single eating on cafeteria table, 2 riders in a lift, distance in queues and
breakout areas, sole riders in fleet vehicles etc.). Common touch surfaces have been
mitigated – e.g. automated dispensers, toothpick touches for lift buttons and
switches, etc.). Company meals are being provided to prevent external infection; staff may
also get personal tiffins. No external visitors are permitted. Contactless delivery for
receiving materials is followed.
Safety equipment: All staff working in office have been provided masks and face
shields. Reporting staff has been provided PPEs, wherever needed. Their equipment has also
been modified to ensure social distancing, e.g. long microphone sticks. Sanitizers are
available at multiple places in the office and fleet cars.
Attention to common services staff: Housekeeping staff and security staff is
restricted. Canteen staff is limited to dedicated service provider only. Health of Fleet
Drivers is reviewed regularly.
Containment Zone alternatives: On a daily basis, containment zones are reviewed
versus employee addresses. If an employee's home is in a containment zone, s/he has to
move to a company guest house. The guest house has only members of the organization as
residents.
Office entry restrictions: Other than those allowed to be In-Office, all entry
cards have been deactivated. Employees are required to fill a Well-Being Survey which
covers antecedents of the last 14 days. For e.g. if an employee has travelled, is from a
containment or hotspot zone, gone for hospital visits, has reported family or
self-sickness etc. entry is not permitted.
Sanitization and hygiene: Floors and equipment (such as voice over mics, video
editing equipments) are sanitized after usage and after each shifts. Bacti Barrier, a
super coating of a natural, non-toxic substance on all office surfaces has been done to
prevent microbial accumulation. This lasts for 6 months.
Personal Protocols and Widespread Awareness: Regular communication on latest ways
to stay safe, ICMR guidelines, MHA advisories are regularly shared. Communication is sent
by top management so it receives priority attention.
Medical Protocols, Treatment and Testing: The Company has a fully equipped medical
room that operates with a doctor and nursing staff 24*7. It has tie-ups with local
hospitals, testing agencies and mobile services. Thermal checks are done at entry and
exits. Medical Insurance cards have been shared. All FAQs, including updations in
information received from authorities are communicated.
Medical Help Desk: A Medical Help Desk supports all employees and their families
across the country on symptoms, hospitalization, coordinates with health authorities, etc.
It also monitors all sick individuals on a daily basis and raises an alert for COVID-like
symptoms. The Medical Help desk is a single point of contact on every health, quarantine,
hotspot or COVID issue.
AAJ TAK
Aaj Tak has maintained its Leadership among Hindi News Channels in the new Audience
Measurement System BARC with a Market Share of 16.0% (15+ NCCS All, HSM, April 1st 2019
– March 31st 2020, Relative Share basis Imp '000 out of 14 Hindi News Channels). Aaj
Tak has also crossed average weekly 101 million viewers touching a maximum of 188 million
in 2019-20 (15+ NCCS All, HSM, Wk 14'19-13'20, Coverage).
INDIA TODAY TELEVISION
India Today Television has shown substantial growth compared to other leading English
news channels in Q4 w.r.t Q3, channel has registered 78% growth in this period.
In NCCS A, India Today television is No.2 behind the No.1 by a very thin margin.
TEZ
Tez maintains lead over DD News, India News, Zee Hindustan and NDTV India in the
financial year 2019-20. (15+NCCS All, HSM, April 1st 2019 – March 31st 2020, Relative
Share basis Imp '000 out of 14 Hindi News Channels). Tez in Q4 w.r.t Q3 has registered 20%
growth in Gross Impressions and 13% growth in Cume Rch'000.
ISHQ 104.8 FM
Your Company operates a radio station under the brand name of 104.8 Ishq FM. The
station wows its listeners in top 3 metro cities of Mumbai, Delhi, and Kolkata with
melodious songs and innovative programming. During the year, we consolidated the brand
"Ishq" on the premise of disruptive campaigns like "Ishq in England"
where a couple was sent to see the final match of ICC Cricket World Cup and "Ishq
Double Shots" which was India's first interactive storytelling show.
Your radio channel also launched Season 2 of "What Women Want with Kareena Kapoor
Khan" which has become one of the biggest digital celebrity chat shows in India. The
2nd season featured some of Bollywood's A-listers like Kartik Aaryan, Sara Ali Khan,
Sharmila Tagore and many others, and garnered more than 60 million views across digital
platforms.
DIGITAL BUSINESS
The digital operations of your Company also grew by 50.52% during the year. The Mobile
Tak App of the Company is live with 24 Mobile Tak Channels including different genres like
News, Hyperlocal News, Sports, Tech, Lifestyle etc., which has massive reach i.e. 31.96
million subscribers & 7.15 million Facebook Likes.
Digital highlights:
(i) Aaj Tak crossed 30 Million subscriber mark on YouTube (as of March '20 end) and
retained its position as World's No. 1 YouTube Channel in its segment.
(ii) Aaj Tak is No.1 across social media platforms like Facebook, Instagram and
Twitter.
(iii) Aaj Tak has maintained No. 1 rank on ComScore across Web, Mobile & App
platform almost throughout the year.
(iv) Aaj Tak launched ‘Aaj Tak Radio' that offers audio news online – Podcast
offering. (v) Aaj Tak is now available in Canada on Karostream OTT platform.
(vi) The Lallantop became the only Digital First Original News Brand to cross 10
million subscribers on YouTube in Nov'19 (Source: Vidooly Report) and received YouTube
Diamond Play Button.
(vii) India Today Group Digital is ranked No. 1 in General News category on Mobile as
per ComScore March 2020 report.
(viii) T.V. Today became the 1st media company to get into Gaming & eSports in
India, and successfully conducted their first event in Oct'19 at Sirifort Auditorium,
which was attended by the Union Sports Minister.
(ix) India Today & Aaj Tak news is available across all major OTT player. The group
properties are now available across most connected devices, through its own App ecosystem.
DIVIDEND
During the year, the Board, on October 22, 2019, had declared an interim dividend of Rs
20/- per equity share of Rs 5/- each fully paid up (400% of face value) for the financial
year 2019-20. The interim dividend outflow was Rs 119.32 Crores whereas the Dividend
Distribution Tax was Rs 24.53 Crores.
Further, based on the Company's performance, the Directors are also pleased to
recommend for your consideration and approval payment of final dividend amounting to Rs
2.25 i.e. @ 45% per equity share of Rs 5/- each fully paid up, for the financial year
2019-20. The final dividend on equity shares, if approved by the members would involve a
cash outflow of Rs 13.43 Crores. Pursuant to Regulation 43A of the SEBI Listing
Regulations, a Dividend Distribution Policy is available on the Company's Website viz.
https:// aajtak.intoday.in/investor/ and forms part of the Annual Report as Annexure
–I.
GENERAL RESERVE
The Company has not transferred any amount to the General Reserve for the financial
year ended March 31, 2020.
SHARE CAPITAL
During the financial year under review, the Company had allotted 7,500 Equity shares
under TVTN Employee Stock Option Plan Scheme, 2006 on February 07, 2020. Post allotment,
the issued, subscribed and paid up equity share capital of the Company increased to Rs
29,83,43,075 consisting of 5,96,68,615 Equity Shares of Rs 5/- each. Pursuant to this
allotment, the TVTN Employee Stock Option Plan Scheme, 2006 is now closed.
DEPOSITS
The Company has not accepted any deposit and as such, no amount of principal or
interest was outstanding as at the end of the financial year.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
INDUCTIONS, RETIREMENT & RE-APPOINTMENT
During the period under review, Ministry of Information and Broadcasting vide its
letter dated June 20, 2019, had granted approval for appointment of Mrs. Neera Malhotra as
an Additional Independent Woman director of the Company. Further, the members in the
Annual General Meeting ("AGM") held on September 12, 2019 had approved the
appointment of Mrs. Neera Malhotra as the Independent Director of the Company for a period
of 5 years with effect from June 20, 2019.
Pursuant to the provisions of the Act, Ms. Kalli Purie Bhandal, Vice-Chairperson and
Managing Director of the Company, is liable to retire by rotation at the forthcoming AGM
and being eligible, has offered herself for re-appointment. The Board recommends her
re-appointment. Ms. Kalli Purie Bhandal is not debarred from re-appointment pursuant to
any order of SEBI or any other authority.
Mr. Rajeev Gupta, Independent Director will be completing his present term as
Independent Director of the Company on March 04, 2021.
On the recommendation of the Nomination and Remuneration Committee, the Board in its
meeting held on May 14, 2020 subject to the approval of shareholders by special
resolution, has re-appointed Mr. Rajeev Gupta as Independent Director of the Company for a
further term of five years w.e.f. March 05, 2021. The Company has received requisite
notice in writing from a member proposing his name for the office of Independent Director.
It is also confirmed that Mr. Rajeev Gupta is not debarred from reappointment pursuant to
any order of SEBI or any other authority. Accordingly, the Board recommends his
re-appointment at the ensuing AGM.
Brief resume, nature of expertise, details of directorships held in other companies of
the Director(s) proposed to be re-appointed, along with their shareholding in the Company,
as stipulated under Secretarial Standard 2 and Regulation 36 of the SEBI Listing
Regulations, is appended as an annexure to the Notice of the ensuing AGM.
INDEPENDENT DIRECTORS
All Independent Directors have given declarations that they meet the criteria of
independence as laid down under Section 149 (6) of the Act and Regulation 16 of SEBI
Listing Regulations. The Independent Directors have also confirmed that they have complied
with the Company's code of conduct for Directors and Senior Management Personnel.
All the Independent Directors of the Company have registered themselves in the data
bank maintained with the Indian Institute of Corporate Affairs, Manesar (‘IICA'). In
terms of Section 150 of the Act read with Rule 6(4) of the Companies (Appointment &
Qualification of Directors) Rules, 2014, the Independent Directors are required to
undertake online proficiency self-assessment test conducted by the IICA within a period of
one (1) year from the date of inclusion of their names in the data bank. The Independent
Directors, whosoever is required, shall undertake the said proficiency test.
In the opinion of the Board, all independent directors possess strong sense of
integrity and having requisite experience, qualification and expertise. For further
details, please refer Corporate Governance Report.
POLICY ON NOMINATION, REMUNERATION AND BOARD DIVERSITY
The Company believes that building a diverse and inclusive culture is integral to its
success. A diverse Board, among others, will enhance the quality of decisions by utilising
different skills, qualifications, professional experience and knowledge of the Board
members necessary for achieving sustainable and balanced development. In terms of SEBI
Listing Regulations and Act, the Company has in place Nomination & Remuneration
Policy.
The said Policy of the Company, inter alia, provides that the Nomination and
Remuneration Committee shall formulate the criteria for appointment of Executive,
Non-Executive and Independent Directors on the Board of Directors of the Company and
persons in the Senior Management of the Company, their remuneration including
determination of qualifications, positive attributes, independence of directors and other
matters as provided under subsection (3) of Section 178 of the Act (including any
statutory modification(s) or re-enactment(s) thereof for the time being in force). The
Policy also lays down broad guidelines for evaluation of performance of Board as a whole,
Committees of the Board, individual Directors including the chairperson and the
Independent Directors. The Policy encourages the appointment of women at senior executive
levels and thereby promoting diversity. The Policy is designed to attract, recruit, retain
and motivate best available talent. The Policy is available on the website of the Company
at https://aajtak.intoday.in/investor/. During the financial year, no changes were made in
the Policy.
ANNUAL EVALUATION AND FAMILIARISATION PROGRAMME FOR INDEPENDENT DIRECTORS
Pursuant to the provisions of the Act and the SEBI Listing Regulations, a structured
questionnaire was prepared for evaluating the performance of Board, its Committees and
Individual Director including Independent Directors. The questionnaires were prepared
after taking into consideration the various facets related to working of Board, its
Committee and roles and responsibilities of Director. The Board and the Nomination and
Remuneration Committee reviewed the performance of the individual Directors including
Independent Directors on the basis of the criteria and framework adopted by the Board.
Further, the performance of Board as a whole and committees were evaluated by the Board
after seeking inputs from all the Directors on the basis of various criteria. The Board of
Directors expressed their satisfaction with the evaluation process.
In a separate meeting of Independent Directors, performance of Non-Independent
Directors, performance of Board as a whole and performance of the Chairman was evaluated,
taking into account the views of the Executive Directors and Non-executive Directors. The
details of the evaluation process are set out in the Corporate Governance Report which
forms part of this Annual Report.
A note on the familiarisation programme adopted by the Company for training of the
Independent Directors, is set out in the Corporate Governance Report which forms part of
this report.
BOARD MEETINGS
The Board met 4 (four) times in the financial year 2019-20. The period between any two
consecutive meetings of the Board of Directors of the Company was not more than 120 days.
The, details of the Board Meetings and the attendance of the Directors are provided in the
Corporate Governance Report that forms part of this Annual Report.
AUDIT COMMITTEE
The composition and other related information of the Audit Committee is stated in the
Corporate Governance Report. All recommendations of the Audit Committee were accepted by
the Board during the financial year 2019-20.
SUBSIDIARY/ASSOCIATE & JOINT VENTURE COMPANIES AND CONSOLIDATED FINANCIAL
STATEMENTS
As at March 31, 2020, the Company has 3 (three) subsidiary companies in terms of the
provisions of Act, namely, T.V. Today Network (Business) Limited, Mail Today Newspapers
Private Limited and Vibgyor Broadcasting Private Limited. The Company has no material
subsidiary in accordance with the SEBI Listing Regulations.
During the year under review, Hon'ble National Company Law Tribunal (NCLT) vide its
order dated July 22, 2019, sanctioned the Composite Scheme of arrangement &
amalgamation amongst Mail Today Newspapers Private Limited (Mail Today), India Today
Online Private Limited (ITOPL), the Company and their respective shareholders &
creditors. Consequent upon which, ITOPL, a wholly owned subsidiary of the Company, stands
dissolved with effect from August 07, 2019 and all the assets, rights, titles and interest
of ITOPL stands transferred and vested in the Company.
During the year, the Board of Directors reviewed the affairs of the subsidiaries. In
accordance with Section 129(3) of the Act, consolidated financial statements of the
Company and all its subsidiaries have been prepared, which form part of the Annual Report.
Further, a statement containing the salient features of the financial statements of the
subsidiaries in the prescribed format AOC-1 is annexed as Annexure II. The
statements provide the details of performance, financial positions of each of the
subsidiaries.
In accordance with Section 136 of the Act, the audited financial statements, including
the consolidated financial statements and related information of the Company, are
available on Company's website at https://aajtak.intoday.in/investor/. Audited accounts of
each of its subsidiaries are not being annexed to this report. The audited financial
statements of the subsidiary are available for inspection at the Company's registered
office and respective registered office of the subsidiary Companies. The Company will
provide the copy of the financial statements of its subsidiary companies to the members
upon their request.
No company has become/ceased to be Associate or Joint Venture during the financial year
2019-20.
TRANSFER TO INVESTORS EDUCATION AND PROTECTION FUND
During the year, the Company has transferred the unpaid/unclaimed dividend amounting to
Rs 194,640/- to the Investor Education and Protection Fund (IEPF) Account established by
the Central Government. The Company has also uploaded the details of unpaid and unclaimed
amounts lying with the Company as on March 31, 2019 on the website of the Company http://aajtak.intoday.in/investor/.
Further, in terms Section 124(6) read with Investor Education and Protection Fund
Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (IEPF Rules), as amended,
the Company has transferred 2,093 Equity Shares to the demat account of Investor Education
and Protection Fund, details of which are uploaded on the website of the Company
http://aajtak.intoday.in/investor/.
The shareholders whose unpaid dividend / shares are transferred to the IEPF can request
the Company / Registrar and Transfer Agent as per the applicable provisions in the
prescribed Form for claiming the unpaid dividend / shares from IEPF. The process for
claiming the unpaid dividend / shares out of the IEPF is also available on the Company's
website at http://aajtak.intoday.in/investor/.
COMPOSITE SCHEME OF ARRANGEMENT AND AMALGAMATION
During the period under review, the National Company Law Tribunal ("NCLT"),
Principle Bench at New Delhi has sanctioned, the Composite Scheme of Arrangement and
Amalgamation amongst Mail Today Newspapers Private Limited (Mail Today), India Today
Online private Limited (ITOPL), the Company and their respective shareholders and
creditors, vide its order dated July 22, 2019, which was filed with the Registrar of
Companies on August 07, 2019.
Pursuant to NCLT Order, ITOPL, wholly owned subsidiary of the Company stands dissolved
without being wound-up and newspaper undertaking of Mail Today got demerged to the
Company. Accordingly, all the properties, assets, rights, claims and obligations of ITOPL
and newspaper undertaking of Mail Today have been transferred and vested in the Company on
a going concern basis with effect from the Appointed Date i.e. January 1, 2017. As
informed in our last reports, the proposed restructuring would be in the best interest of
the restructured companies and their respective shareholders and creditors.
EMPLOYEES STOCK OPTION PLAN
To retain, promote and motivate the best talent in the Company and to develop a sense
of ownership among employees, the Company had instituted an Employees Stock Option Scheme
2006 (TVTN ESOP 2006) with the approval of the members. The said scheme was in compliance
with the SEBI (Share Based Employee Benefits) Regulation, 2014. As on March 31, 2020,
there were no ESOP Options which were outstanding and therefore the existing TVTN ESOP
Scheme 2006 stands closed.
A detailed report with respect to options exercised, vested, lapsed, exercise price,
vesting period etc. under TVTN ESOP 2006, is disclosed on the website of the Company at
https://aajtak.intoday.in/investor/.
A certificate from Statutory Auditors, with regard to the implementation of the Company
TVTN ESOP 2006, would be placed before the members in the ensuing AGM and a copy of the
same shall be available for inspection at the registered office of the Company and during
the course of the ensuing AGM.
STATUTORY AUDITORS
At the eighteenth (18th) AGM of the Company, the members approved the appointment of
M/s. S.R. Batliboi & Associates LLP, Chartered Accountants (ICAI Firm Registration No.
101049W / E300004) as the Statutory Auditors, to hold office till the conclusion of twenty
third (23rd) AGM of the Company.
AUDITORS' REPORT
The Auditors' Report read along with notes to accounts is self-explanatory and
therefore does not call for further comments. The Auditors' Report does not contain any
qualification, reservation or adverse remark.
SECRETARIAL AUDITORS
Pursuant to the provisions of Section 204 of the Act and the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, the Company had appointed M/s PI &
Associates, a firm of Company Secretaries in Practice to undertake the Secretarial Audit
of the Company for the financial year 2019-20. The Secretarial Audit Report is annexed
herewith as
Annexure III. The Secretarial Audit Report does not contain any qualification,
reservation or adverse remark.
COST AUDITORS
The Cost Audit for the financial year ended March 31, 2019 was conducted by M/s. SKG
& Co (M. No. 000418). The said Cost Audit Report was filed on August 30, 2019.
Based on the recommendations of the Audit Committee, the Board has approved the
reappointment of M/s. SKG & Co (M. No. 000418), as the Cost Auditors of the Company
for the financial year 2020-21 on a remuneration of Rs 1,45,000/- plus applicable taxes
and out of pocket expenses that may be incurred by them during the course of audit. As
required under the Act, the remuneration payable to the Cost Auditor is required to be
placed before the Members in a general meeting for their ratification. Accordingly, a
resolution seeking Member's ratification for the remuneration payable to M/s. SKG &
Co., Cost Auditors is included in the Notice convening the ensuing AGM.
The Company has maintained accounts and records as specified under sub-section (1) of
148 of the Act.
CORPORATE SOCIAL RESPONSIBILITY
At T.V. Today, Corporate Social Responsibility (CSR) encompasses much more than social
outreach programmes. Over the years, the Company has aligned its business processes and
goals to make a more deep-rooted impact on the society's sustainable development.
In accordance with the requirements of Section 135 of the Act, the Company has
constituted a CSR Committee. The composition of the CSR Committee is provided in the
Report on CSR Activities and Corporate Governance Report, which forms part of this Report.
The CSR Policy as recommended by the CSR Committee and approved by the Board is
available on the website of the Company at https://aajtak.intoday. in/investor/. The
Policy recognizes that corporate social responsibility is not merely compliance, it is a
commitment to support initiatives that measurably improve the lives of underprivileged.
The Policy also lays down the list of activities for CSR Projects, Programs and
activities.
The Policy lays emphasis on transparent monitoring mechanism for ensuring
implementation of the projects undertaken/ proposed to be undertaken by the Company in
accordance with the overall objective of the CSR policy.
Further, during the year under review, the Board of Directors on the basis of
recommendations of CSR Committee, has approved allocation of Rs 3,77,26,100/-
towards CSR activities for the financial year 2019-20. The following projects undertaken
during the year focussed on the following:
(i) Supporting relief and rehabilitation activities for cyclone victims of Odisha;
(ii) Construction of household toilets;
(iii) Supporting relief and rehabilitation activities towards flood affected areas in
Assam, Bihar and Kerala;
(iv) Setting up of Library, literacy promotion and education activities for inmates of
Tihar Jail;
(v) Supporting acid attack survivors for their medical treatment, education and
rehabilitation, including livelihood enhancement; and
(vi) Supporting people affected by Novel Coronavirus (COVID-19) in India.
A detailed update on the CSR initiatives of the Company is also provided in the
Corporate Social Responsibility section, which forms part of the Annual Report. The Annual
Report on Corporate Social Responsibility u/s 135 of the Act is annexed as Annexure IV
to this Report.
BUSINESS RESPONSIBILITY REPORT
As stipulated under the SEBI Listing Regulations, the Business Responsibility Report,
describing the initiatives taken by the Company from environmental, social and governance
perspective forms part of this Annual Report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The Management Discussion and Analysis Report for the financial year under review, as
stipulated under the SEBI Listing Regulations, is presented in a separate section, forming
part of this Annual Report.
CORPORATE GOVERNANCE REPORT
A report on Corporate Governance forms part of the Annual Report along with the
Certificate on Corporate Governance as required under SEBI Listing Regulations. The
Practicing Company Secretaries' certificate for the financial year 2019-20 does not
contain any qualifications, reservations or adverse remarks.
INTERNAL CONTROL / INTERNAL FINANCIAL CONTROL AND THEIR ADEQUACY
The Company has adequate Internal control/Internal Financial control systems which
commensurate with the size and nature of its business. An internal audit programme
covering various activities and periodical reports are submitted to the management. The
Company has a well defined organisational structure, authority levels and internal rules
and guidelines for conducting business transactions.
The Board has adopted the policies and procedures for ensuring the orderly and e_cient
conduct of business, including adherence to the Company's policies, the safeguarding of
its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records and timely preparation of reliable financial
disclosures.
RISK MANAGEMENT
The Company has a duly approved Risk Management Policy and constituted Risk Management
Committee as required under SEBI Listing Regulations. The Committee oversees the Risk
Management process including risk identification, impact assessment, effective
implementation of the mitigation plans and risk reporting. The purpose of the Committee is
to assist the Board of Directors in fulfilling its oversight responsibilities with regard
to enterprise risk management.
The Company faces constant pressure from the evolving marketplace that impacts
important issues in risk management and threatens profit margins. The Company emphasizes
on those risks that threaten the achievement of business objectives of the Group over the
short to medium term. Your Company has adopted the mechanism for periodic assessment to
identify, analyze, and mitigate the risks.
The appropriate risk identification method depends on the application area (i.e. nature
of activities and the hazard groups), the nature of the project, the project phase,
resources available, regulatory requirements and client requirements as to objectives,
desired outcome and the required level of detail.
All the senior executives have the responsibility for over viewing management's
processes and which results in identifying, assessing and monitoring risk associated with
organization's business operations and the implementation and maintenance of policies and
control procedures to give adequate protection against key risk of the Company.
Further, in carrying out the risk management processes, the senior executives of the
Company consider and assess the appropriateness and effectiveness of management
information and other systems of internal control, encompassing review of the external
Auditor's report to management on internal control and action taken or proposed resulting
from those reports.
The risk management and internal control systems within the organization encompass all
policies, processes, practices and procedures established by management and / or the Board
to provide reasonable assurance that:
• Established corporate, business strategies and objectives are achieved;
• Risk exposure is identified and adequately monitored and managed;
• Resources are acquired economically, adequately protected and managed
efficiently and effectively in carrying out the business;
• Significant financial, managerial and operating information is accurate,
relevant, timely and reliable; and
• There is an adequate level of compliance with policies, standards, procedures
and applicable laws and regulations.
POLICIES OF THE COMPANY
The Company as per the provisions of Act and SEBI Listing Regulations formulated the
following policies:
| Name of the Policy |
Web link |
| Policy on Materiality of Related party |
http://specials.indiatoday.com/aajtaknew/ download/Policy-on-Materiality-of-Related- |
|
|
| Transactions and dealing with related party transactions |
Party-Transactions-and-dealing-with- Related-Party-transactions.pdf |
|
|
|
|
| Policy for determining Material subsidiaries |
http://specials.indiatoday.com/aajtaknew/ download/Policy-for-determining-Material-
Subsidiary.pdf |
|
|
|
|
| Vigil mechanism / Whistle Blower Policy |
http://specials.indiatoday.com/aajtaknew/ download/Vigil_Mechanism_Whistle_
Blower_Policy.pdf |
|
|
| Corporate Social Responsibility Policy |
http://specials.indiatoday.com/aajtaknew/ download/Corporate-Social-Responsibility-
Policy.pdf |
|
|
|
|
| Policy on determination of Materiality |
http://specials.indiatoday.com/aajtaknew/ download/Policy-on-determination-of-
Materiality.pdf |
|
|
|
|
| Dividend Distribution Policy |
http://specials.indiatoday.com/aajtaknew/ download/Dividend-Distribution-Policy.pdf |
|
|
| Business Responsibility Policy |
http://specials.indiatoday.com/aajtaknew/ download/Business-Responsibility-Policy. pdf |
|
|
| Archival Policy |
http://specials.indiatoday.com/aajtaknew/ download/ARCHIVAL_POLICY.pdf |
|
|
| Risk Management Policy |
http://specials.indiatoday.com/aajtaknew/ download/Risk_Management_Policy.pdf |
|
|
| Policy for Registrar and Share Transfer Agent |
http://specials.indiatoday.com/aajtaknew/ download/POLICY-FOR-REGISTRAR-
AND-SHARE-TRANSFER-AGENT.pdf |
|
|
|
|
VIGIL MECHANISM/WHISTLE BLOWER POLICY
The Company promotes ethical behavior in all its business activities and has put in
place a mechanism for reporting illegal or unethical behavior. The Company has a Vigil
mechanism and Whistle blower policy under which the persons covered under the policy
including Directors and employees are free to report misuse or abuse of authority, fraud
or suspected fraud, violation of Company rules, manipulations, negligence causing danger
to public health and safety, misappropriation of monies, and other matters or activity on
account of which the interest of the Company is affected. The reportable matters may be
disclosed to the vigilance officer who operates under the supervision of the Audit
Committee. Persons covered under the Policy may also report to the Chairman of the Audit
Committee.
During the year under review, no employee was denied access to the Chairman of the
Audit Committee. No complaints were received under Vigil Mechanism & Whistle Blower
Policy during the financial year 2019-20.
DETAILS OF LOANS, INVESTMENTS AND GUARANTEES UNDER SECTION 186
Details of Loans, Guarantees and Investments covered under the provisions of Section
186 of the Act are given in Note No 36 of the Notes to Accounts of the financial
statements.
ANNUAL RETURN
The details forming part of the extract of the Annual Return in Form MGT-9, as required
under Section 92 of the Act, is annexed as Annexure V which forms an integral part
of this Report and Annual Return in Form MGT- 7 is available on the Company's website at
http://specials.indiatoday.com/aajtaknew/ download/2019-20.pdf
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
All related party contracts/arrangements/transactions that were entered into during the
financial year were on an arm's length basis and were in the ordinary course of business.
During the financial year, the Company had not entered into any contract/
arrangement/transaction with related parties which could be considered material in
accordance with the policy of the Company on materiality of related party transactions.
All related party transactions are mentioned in Note No. 27 of the notes to the
Accounts. Accordingly, the disclosure of Related Party Transactions as required under
Section 134 (3) (h) of the Act in Form AOC-2 is not applicable.
All Related Party Transactions are placed before the Audit Committee for approval.
Prior omnibus approval of the Audit Committee was obtained for the transactions which are
of a foreseen and repetitive nature. The statement of transactions entered into pursuant
to the omnibus approval so granted is placed before the Audit Committee for approval.
PARTICULARS OF EMPLOYEES
Disclosures relating to remuneration of Directors u/s 197(12) of the Act read with Rule
5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is
annexed as Annexure VI to this report.
In terms of the first proviso to Section 136 of the Act, the annual report is being
sent to all members of the Company excluding Particulars of employees as required under
section 197 of the Act read with 5(2) & (3) of the Companies (Appointment and
Managerial Personnel) Rules, 2014. The same is open for inspection at the registered
office of the Company during business hours for a period starting twenty days before the
date of the AGM. Any member interested in obtaining a copy thereof, may write to the
Company Secretary.
Except, Mr. Aroon Purie who draws remuneration of Rs 3,72,17,746/- per annum from
Living Media India Limited in the capacity of Editor in Chief of Living Media India
Limited, Holding Company of the Company, no other Director, of the Company is in receipt
of any remuneration or commission from the holding company or any subsidiary company of
the Company.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The information with regard to Conservation of Energy, Technology Absorption, Foreign
Exchange Earnings and outgo in accordance with the provisions of Section 134(3)(m) of the
Act read with Rule 8 of the Companies (Accounts) Rules, 2014, is given as Annexure VII
forming part of this Report.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS
Save and otherwise provided in this report, there were no significant material orders
passed by the Regulators/ Courts/ Tribunals during the financial year 2019-20 which would
impact the going concern status of the Company and its future operations.
DIRECTOR'S RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 134(5) of the Act, with respect to Directors'
Responsibility Statement, it is confirmed that:
• in the preparation of the annual accounts for the year ended March 31, 2020, the
applicable accounting standards have been followed and there are no material departures
from the same;
• the Directors have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company as at March 31, 2020 and
of the profit of the Company for the year ended on that date;
• the Directors have taken proper and care for the maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting fraud and other irregularities;
• the Directors have prepared the annual the Company on a going concern basis;
• the Directors, have laid down internal controls to be followed by the Company
and that such internal financial controls are adequate and were operating effectively;
• the Directors have devised proper systems to compliance with the provisions of
all applicable laws and that such systems were adequate and operating effectively.
STATEMENT UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND
REDRESSAL) ACT, 2013
The Company has complied with the provisions of the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013 and has in place a Policy on
Prevention of Sexual Harassment at the Workplace in line with the provisions of the said
Act and an Internal Complaints Committee has also been set up to redress complaints
received regarding Sexual Harassment. The policy and the Internal Complaints Committee is
announced to all staff and is available on the internal policy portal and is also
disclosed on the website of the Company at https://aajtak.intoday.in/investor/.
No complaint of sexual harassment was received during the financial year 2019-20.
OTHER DISCLOSURES
(i) T he Statutory Auditors of the Company has not reported incident related to fraud
during the financial year to the Audit Committee or Board of Directors under section
143(12) of the Act.
(ii) The Company has complied with Secretarial Standards issued by the Institute of
Company Secretaries of India on Meetings of the Board of Directors and General Meetings;
(iii) No material changes and commitments, if any, of affecting the financial position
of the Company have occurred between the end of the financial year of the Company to which
the financial statements relate and the date of this Report. The outbreak of COVID –
19 pandemic, posed unprecedented challenges to the business. Considering the fact that the
situation is exceptional and is changing dynamically, the Company is not in a position
ensure to gauge with certainty, the future impact on its operations. The Company has taken
all necessary steps to ensure smooth functioning of operations. However, with inherent
resilience of the business model, position the Company, the Company is confident about
adapting to the changing business environment.
(iv) N o change in the nature of the business of the Company happened during the
financial year under review.
ACKNOWLEDGMENT
Your Directors place on record their deep appreciation for the contribution made by
employees at all levels with dedication, commitment and team effort, which helped your
Company in achieving the performance during the year.
Your Directors also acknowledge with thanks the support given by the Government,
bankers, members and investors at large and look forward to their continued support.
For and on behalf of the Board of Directors
|
Aroon Purie |
|
Chairman |
|
DIN:00002794 |
|
Address: 6, Palam Marg, |
| Place: New Delhi |
Vasant Vihar, |
| Date: May 14, 2020 |
New Delhi – 110057. |
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