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Project report of NE&IM

On

Feasibility Report of DTH Service

Submitted to:-

Prof: Ritesh Patel

Prepared By:-

Ravindra Patel

Ravi sevariya

Hardik Mistry

Yatin Surani
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he history of Indian television dates back to the launch of doordarshan, India¶s national
network
th
in 1959.
he transmission was in black & white.
he 9 Asian games which were held in 1982 in the
country¶s capital New Delhi heralded the mark of color
broadcasting in India. In 1991, Indian
economy was liberalized from the License Raj and major initiatives like inviting foreign direct
investments, deregulation of domestic business emerged.
his lead to the in flux of foreign channels
like Star
and creation of domestic satellite channels like Sun
and Zee
.
his virtually
destroyed the monopoly held by doordarshan. In 1992, the cable
industry started which lead to
revolution.

Every city in the India had a complex web of co-axial cables running through the streets with a new
breed of entrepreneurs called as cablewallahs or Local Cable Operators (LCO) taking in charge of
distribution.
he film industry was shocked by this sudden growth and there were even organized
protests for calling off the Cable
industry.
here were simply too many cable operators in the
country and the channels had a difficult time in getting its returns as the existing system was a non-
addressable and the operators could simply give a reduced number of subscribers to amass profit.
his
lead to the emergency of a new breed of firms called as Multi System Operators (MSO) who had
heavy financial muscles to make capital investments. .
he MSO industry became highly
monopolistic which warrants government participation to ensure competition.

Later on, the United Front Government had issued a ban on use of ku band transmission. After a
change of government, the ban got lifted finally in 2001 and
RAI issued the guidelines for operating
D

. Country¶s first private D

license was awarded to Dish
in 2003 which started operations
in 2004. Prasar Bharati also started its product DD-Direct+.

D

Digital
system receives signals directly from satellite through the dish, decodes it with the
Set-
op Box and then sends stunningly clear picture and sound to
which is the business under
taken by some companies by observing the rate of growth and scope for business & opportunity in the
Indian market which has 120 million viewers of
.

With the Indian economy growing at a GDP growth rate of 7.4%, there is a sense of growth prevailing
every where.
he average Indian¶s disposable income and purchasing has risen to never before levels.

he Indian entertainment and media industry is not far behind. It is currently estimated at a worth of
Rs.450 billion with a CAGR of 18% over the next 5 years.
erms which were alien to Indian¶s like
capital D

, digital cables, IP
are suddenly finding presence in the country¶s journals.
In 2007,
RAI proposed a new initiative by name ³
ead end-In-
he-Sky (
I
S)´ Model as an
alternative to the existing cable distribution. Instead of the MSO¶s providing the bundle, there will be
a single
I
S operator who will prepare the bundle of channels and beam it to the
eaded in the
satellite.
he LCO¶s can receive this digitalized bundle and deliver to the individual homes. With

I
S, country wide implementation of CAS becomes instantaneous and cost-effective.
his benefits
both the broadcasters and the customers by ensuring Addressability, Better quality of service and
increased number of channels. Another emerging trend is the IP
which is yet to be regulated and
one can expect lot of action in this sector.

According to a report on Direct to home (D

) service, it predicts that India would overtake Japan as
Asia¶s largest D

by 2010 and be the Asia¶s leading cable market by 2010 and the most profitable
pay-
market by 20015.

List of players in the industry

Rc Doordarshan ± (DD-Direct +) of Prasar Bharati comprising of 33 F

A channels and 12 All
India Radio Channels.
Rc Dish
of ZEE group.
Rc
ata Sky joined venture between
ata and Rupert Murdoch¶s Sky
.
Rc Sun direct of Sun Network.
Rc BIG
of Reliance Anil Dhirubhai Ambani group.
Rc Airtel digital
of Bharati telemedia
Rc ideocon d2h of videocon industries

Categorization of players in the industry

Government owned player: DD Direct+.

Private players: Dish

,
ata Sky, Sun direct, Big
, Airtel digital
, ideocon d2h

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Brief profile of players in the industry
DD DIREC
+

Doordarshan is the public television broadcaster of India and a division of Prasar Bharati, a public
service broadcaster nominated by the Government of India. It is one of the largest broadcasting
organizations in the world in terms of the infrastructure of studios and transmitters. Recently, it has
also started Digital
errestrial
ransmitters. On September 15 2009, Doordarshan celebrated its 50th
anniversary.

Doordarshan had a modest beginning with the experimental telecast starting in Delhi on 15 September
1959 with a small transmitter and a makeshift studio.
he regular daily transmission started in 1965 as
a part of All India Radio.
he television service was extended to Bombay (now Mumbai)
and Amritsar in 1972.
ill 1975, seven Indian cities had television service and Doordarshan remained
the only television channel in India.
elevision services were separated from radio in 1976. Each
office of All India Radio and Doordarshan were placed under the management of two separate
Director Generals in New Delhi. Finally Doordarshan as a National Broadcaster came into existence.

National telecasts were introduced in 1982. In the same year, color

was introduced in the Indian
market with the live telecast of the Independence Day speech by then Prime Minister Indira
Gandhi on 15 August 1982, followed by the 1982 Asian Games being held in Delhi. Now more than
90 percent of the Indian population can receive Doordarshan (DD National) programmes through a
network of nearly 1400 terrestrial transmitters and about 46 Doordarshan studios produce

programs today.

DD Direct+ is a free Direct to
ome (D

) service that provides satellite television and audio
programming to households and businesses in the Indian subcontinent. Owned by parent
company Doordarshan, DD Direct Plus was launched on December 16, 2004. Now chairman of DD
plus+ is Shri Arun Bhatnagar and CEO is B S Lalli under the ministry of information and
broadcasting.

Dish

Dish
is the first private D

satellite television provider in India, using MPEG-2 digital
compression technology, transmitting using NSS Satellite at 95.0. Dish
s managing director and

ead of Business is Jawahar Goel who is also the promoter of Essel Group and is also the President of
Indian Broadcasting Foundation and Mr. Subhash Chandra is the Chairman of Dish
. Dish
is a
division of Zee Network Enterprise (Essel Group enture). EG has national and global presence
with business interests in media programming, broadcasting & distribution, speciality packaging and
entertainment. Zee Network incorporated dishtv to modernize
viewing. By digitalizing Indian
entertainment, this enterprise brought best television viewing technology to the living room. It not
only transmits high quality programmes through satellite; but also gives a complete control of
selecting channels and paying

D

service was launched back in 2004 by launching of Dish
by Essel Groups Enterprises. Dish

is on the same satellite where DD Direct+ is. Dish

started its service in Pakistan with the
collaboration of Budget Communication. Dish
was only D

operator in India to carry the two

urner channels,
urner Classic Movies and Boomerang. Both the channels were removed from the
platform due to unknown reasons in March 2009. Dish
uses NSS-6 to broadcast its programmes.
NSS-6 was launched on 17 December, 2002 by European-based satellite provider, New Skies. Dish

hopped on to NSS-6 from an INSA

satellite in July 2004.
he change in the satellite was to
increase the channel offering as NSS 6 offered more transponder capacity.

ata Sky

ata Sky is a D

satellite television provider in India, using MPEG-2 digital compression
technology, transmitting using INSA
4A at 83.0°.
ata sky is incorporated in 2004;
ata Sky is a J
between the
A
A Group and S
AR.
ata Sky D

endeavors to offer Indian viewers a world-class
television viewing experience through its satellite television service. ikram Kaushik is present CEO
of
ata Sky Ltd.
he
A
A Group is one of Indias largest and most respected business
conglomerates. It comprises 93 operating companies in seven business sectors and diversified group:
information systems and communications, engineering, materials, services, energy, consumer
products and chemicals.
he
A
A Group has operations in more than 40 countries across six
continents and its companies export products and services to 140 nations.

he Group and its enterprises have been steadfast and distinctive in its adherence to business ethics
and their commitment to corporate social responsibility.
his is a legacy that has earned the Group the
trust of many millions of stakeholders in measure few business houses anywhere in the world can
match.
he SKY brand, owned by the UK-based British Sky Broadcasting Group, brings to
ata
Sky the reputation of more than 20 years experience of satellite broadcasting. SKY is well known for
the innovative products and services launched by BSky, such as D

broadcasting in 1989, digital
satellite broadcasting in 1998, interactive television services in 1999 and the SKY+ personal video
recorder in 2001.
ata Sky joins an international group of D

businesses that includes platforms as
far apart as the UK and Italy in Europe, and Mexico and Brazil in Latin America.
ata Sky Ltd is the
First Indian D

provider to be awarded the ISO 27001:2005 accreditation, the ultimate benchmark
for information security.
he assessment for the certification was conducted by Intertek Systems
Certification, the management systems registration business unit of Intertek Group plc and is
accredited by several internationally-recognized accreditation bodies worldwide.

In October 2008,
ata Sky announced launching of D R service c which allowed 45 hours
of recording in a MPEG-4 compatible Set
op Box.
he remote is provided with playback control
keys and is being sold with special offers for existing subscribers.
ata Sky was selected as a SUPER
BRAND for the year 2009-2010 by an independent and voluntary council of experts known as Super
brands Council. It is the only Indian D

to have won this distinction.

Sun Direct

Sun Direct is a D

satellite television provider in India, using MPEG-4 digital compression
technology, transmitting using INSA
4B at 93.5°E. It is the countrys first MPEG 4 technology D


service provider. Sun Direct is a D

service in India headquartered in Chennai,
amil Nadu. Sun
Direct
was registered in February 16, 2005.
owever, the failed launch of INSA
4C resulted in a
lack of transponders, delaying the launch.
he service was finally launched on December 2007 after
availability of transponders from INSA
4CR. Because of the lowest pricing of any D

in India
Sun Direct spread rapidly all over the country. On December Sun Direct was launched in Mumbai and
announced its pan India launch. By 2009 it became leading D

provider with 3 million subscribers.

his makes it 4th largest D

service provider of India. In April 2009 Sun Direct officially launched
its
igh-Definition service in India.

Sun Direct uses the latest MPEG-4 based technology to increase broadcast capacity.

Sun Direct provide next-generation services in fast-growing and emerging markets quickly and
efficiently. Sun Direct selected Oracle based on its convergent multi-service capabilities and proven
real-time scalability allowing it to consolidate billing operations, enables powerful new service
offerings and improves visibility into customer information across services.

BIG

Reliance BIG
is a D

satellite television provider in India based in Navi Mumbai, using MPEG-
4 digital compression technology, transmitting using MEASA
-3 91.5°east. It is the 5th D

service
launched in India. Reliance BIG
limited is a part of Reliance Communications Ltd., a subsidiary
of Reliance Anil Dhirubhai Ambani Group founded by the Late Dhirubhai Ambani, the Indian
business tycoon and owned by his son Anil Ambani. BIG
started operations from 19 August 2008
with the slogan "
ho
ho BIG
o" ("If you have a
, make it BIG"). It currently offers close to
200 channels and many interactive ones, 32 cinema halls (i.e. Pay Per iew Cinema Channels) as well
as many Radio channels.
he company plans to increase the number of channels in the near future to
400 and begin
igh Definition (
D) broadcast. It is the first Pan-India D

provider that uses
MPEG-4 for broadcasting.
here are also plans to introduce services like i-Stock, i-News and other
such interactive services in the future.

Reliance BIG
was launched on August 19, 2008 with the sole aim of providing the consumer with
quality and enriched home entertainment service at value-driven pricing. Reliance BIG
s launch
in August was probably the biggest roll-out in home entertainment ever and deployed the most
advanced MPEG4 technology that enabled them to deliver best quality digital audio-video to the
consumer. It also got prepared for the future when
i-Definition
will be launched in India because
only MPEG4 technology can support
D
and not MPEG2 which is used by the earlier entrants in
the D

industry.

Reliance BIG
s retailer network is spread across 100,000 outlets in 6,500 towns in India.
his was
literally unheard of in the D

industry.
hey had effectively out-stripped the competition here.
When it came to pricing ± packaging, their introductory offer stood at Rs. 1,490/- with 3 to 6 months
of free subscription.
hey also introduced 32 Pay-Per- iew Movie Channels, the highest by any D


player.

Airtel digital

Bharti Airtel Limited is the flagship company of Bharti Enterprises and is India¶s largest
integrated and the first private telecom services provider with a footprint in all the 23 telecom
circles. As Indias leading telecommunications company, the Airtel brand has played the role
of a major catalyst in Indias reforms, contributing to its economic resurgence. Airtel since its
inception has been at the forefront of technology and has steered the course of the telecom
sector in the country with its world class products and services.

Airtel Digital
is a D

(Direct to
ome) service from x
 Airtel. It uses MPEG-4 digital
compression with D B-S2 technology, transmitting using INSA
4CR 74°E

Airtel digital launched on 8 October, 2008 with a 360 degree mega campaign Come
ome to the
Magic. Since then it has launched 2 other campaigns: µStars come home¶ (March 2009) and µD


Picture Clarity (August 2009) has increased its channel base to 183+ channels. Airtel digital
is
now amongst the fastest growing D

brands in the country and is available across 5000+ towns in
India. It has also been ranked as the best D

service by ³Living Digital´ magazine.

Airtel chief Sunil Mittal said that Airtel digital

and other D

players have a bright future in
Indian market as the people are getting more attracted towards D

because of its quality and
affordability.

ideocon d2h

ideocon d2h is a D

satellite television provider in India based in Mumbai, using MPEG-4 with
D B S2 digital compression technology

ideocon Leasing & Industrial Finance Limited was incorporated on 4th September, 1986 as
Adhigam
rading Private Limited. In terms of the necessary resolutions

Passed under Sec. 21 of the Companies Act, 1956, the name of the Company was changed to
ideocon Leasing & Industrial Finance Limited on 14th February, 1991.
he Company received a
fresh certificate of incorporation from the Registrar of Companies, Gujarat at Ahmedabad on
14thFebruary, 1991.

ideocon d2h launched May 1, 2009. it came with a very good strategy for selling both of its
electronic products like
¶s D D¶s along with the new set top box.
his is offering direct to

with out any set top box also. Only the antenna is enough, it also came with D D which is connected
directly to the
or antenna is connected to D D which gives a best quality of out put.

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India has a total television population of close to 135 million, out of which 80% have access
to cable and satellite (i.e. 108 million).
he total D

subscribers are close to 22 million.

hus the D

has a market share of approximately 20%.
he subscriber base for D

in
2006 was meager 1 million. Now for an industry which is just 5 years old, it is a great
achievement.

Let¶s have a look at how the D

industry has grown in these 5 years. In 2005 Dish
was
the only player in the D

industry and was registering subscriber growth mainly in the
areas where cable
was not available.
he subscribers were not ready for the cost of set top
box. In 2007 CAS mandate was introduced in selected metro cities, where users had to invest
in a set top box.

hough the initiative was not very successful, it gave a wider acceptance to the D

and
consumer became ready to pay for the set top box. Spotting the opportunity Sun Direct
launched its services in 2007 with a drastically low one time cost involved for D


subscriber. Followed by this Reliance, Big
and Air-
el and ideocon launched their
services.
he market became competitive. Every player came with innovative offerings, Dish

offered Movie on Demand free worth the cost of set top box, Air-
el and Big
offered
free subscription for first few months etc. All these things were coupled with aggressive
marketing campaigns.
ata Sky gained the maximum subscribers during this period.

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So where is the real growth happening for the D

industry. Is it the urban areas or rural?

hough D

is comparatively expensive than cable service, the growth is coming from the
rural area. If we see statistics the growth for the digital segment in rural areas were 34%, 49%
and 64% in the past three years.(source:-
AM Annual Universe Update ±2010).
he growth
in the rural segment can be attributed to frequent power cuts in the rural areas. D

platform
gives the rural consumer access to their favorite programs, with the help of generator/
invertors, which is not possible with the cable service in most of the areas.

hough D

has certain advantages such as better picture/ sound quality, better customer
service. It also has a disadvantage of price.
he D

player have to pay various taxes such as
Adjusted gross receipts @ 10%, service tax @ 12.36%, A
@ 12.5%,CS
@3%,corporate
tax, Excise duty@ 16%, Customs duty, C D ,customs duty etc. Whereas the local cable
operators easily get away with government taxes by underreporting the subscriber base.
hus
gaining a clear cost advantage.
he regulator should take a note for the same and provide
regulations for the same.

At the same time in Indian market ³One size fits all´ strategy doesn¶t work for long. So, the
D

players have to design packages suitable for rural consumer enable them to enjoy the
digital content (For eg. Levi¶s jeans had enabled consumers to buy their jeans with an EMI
scheme).

he D

industry is expected to grow at a CAGR of close to 24% .
he future of D


industry will largely depend on innovative marketing tactics adopted by the D

players.

he stage is all set for D

industry. Let the real game begin.

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oday the market shares of various players are as follows

Rc Dish
: 30%
Rc Sun Direct: 25%
Rc
ata Sky: 22%
Rc BIG
: 13%
Rc Airtel : 8%
Rc D2
: 2%

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³
he service aims to empower the Indian viewer with Choice, Control and Convenience
through its wide array of programming choices and interactive features.´

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he D

service market in India has emerged as one of the most lucrative markets which have
successfully resisted the impacts of the current economic slowdown.
he slowdown has certainly
proved a boon for the Indian D

industry as people have now started to cut on their entertainment
expenditure and instead of viewing movies at theatres, they are preferring to stay at home with their
television sets.

With the Indian economy growing at a GDP growth rate of 7.4%, there is a sense of growth prevailing
every where.
he average Indian¶s disposable income and purchasing has risen to never before levels.

he industry is anticipated to add nearly 5 Lakh subscribers per month during 2009 and the numbers
are forecasted to surge further at a CAGR of around 30% through 2012, "Indian D

Market
Forecast to 2012Uc 20% annual growth is being witnessed in the D

sector in India with over 8.5
million households having digital pay-
.

A report attributes that the anticipated growth to the efforts of D

industry players who are all trying
to lure viewers by cutting down prices as well as offering perks even though it translates into loss of
Rs 1,600-2,000 on each new subscriber acquired by them.
hey have started to offer a number of
value-added services such as movie on demand, live recording of
content, matrimonial match-
making, etc.

Pattern of Growth

he big game is all about shaping up grandiose plans to master the winning rules to garner as much
portion of the Indian D

pie as possible by a handful of players. Since the D

space denotes big
value, akin to the space occupied by television and telephony, inter-firm rivalries have thrown up
price wars, discount schemes, procurement of transponders, ambitious targets for improving the
subscription base, popular bouquet of channels, set top boxes with superior quality of videos,
improving content, etc as a desperate means to entice the Indian viewer.

he pattern of growth is very difficult to determine because a business cycle takes place in long term.
But this industry is having very short period for making or observing a business cycle.

he analysis that can be made is though the economic cycles is not continues and it was in boom then
when the industry started and now just the economy is in recovering stage from the recession.
Interesting factor is that all the industries are hit seriously buy the rescission but D

industry has
reported growth continuously but only it has slowdown the rate of its growth. Now the industry is
growing at 20% for every annum.

Growth Determinants

Demand constraints and SCAR are the factors which effects the growth of the industry. Growth
determinant and high
sales increase the chance for more sales of set top box which will effect the
growth. When the facilities of the products increase it acts as a growth determinant.

he entertainment channels and the news channels players increase the growth to opt the D

. Some
of the D

players are bringing innovative plans like live shopping, broad band, and etc will act as
growth determinants.

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Compare Direct to home or dth plans at Dthhome.com based on your requirements of dth
channels, channel preferences and regional dth packages based on your television viewing
preferences. BSNL,
ata, Reliance, Airtel, Sub network, Dist
, ideocon etc are some of
the leading players in the field. Product reviews on each of these services are available now,
which you can use if required. Go through them, compare them, evaluate them in the long
and a short-term perspective and then only buy.

aving several service providers makes it difficult to choose from.
o select a D

provider,
we have to consider different factors such as picture quality, transmission during rough
weather, suitability of the plans and other value added services.
he D

service quality
depends on the signal strength, so it is always better to check for excellent reception in your
area.

Demand constraints and SCAR are the factors which effects the growth of the industry.
Growth determinant and high
sales increase the chance for more sales of set top box
which will effect the growth. When the facilities of the products increase it acts as a growth
determinant.

he entertainment channels and the news channels players increase the growth to opt the
D

. Some of the D

players are bringing innovative plans like live shopping, broad
band, and etc will act as growth determinants.

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he costs incurred by the D

players is mainly on its technology, satellite dish, set top box
accessory cards, Ku band transponders in the satellites, customer premise equipment(CPE).
he
launch of satellites is another huge cost which the D

plays shares the transponders. And it costs
them much than any thing. Another cost incurred is on operating cost.

Economies of Scale

Economies of scale may be utilized by any size firm expanding its scale of operation.
he common
ones are purchasing (bulk buying of materials through long-term contracts), managerial (increasing
the specialization of managers), financial (obtaining lower-interest charges when borrowing from
banks and having access to a greater range of financial instruments), and marketing (spreading the
cost of advertising over a greater range of output in media markets).

Cost Advantages

1] Direct customer relationship.

2] Better storage

3] Extensive use of resources.

4] Availability of labour at cheap rates

ools, Equipments & Machinery required

Economies of Scope

An economic theory stating that the average total cost of production decreases as a result of increasing
the number of different goods produced.

Often, as the number of products promoted is increased and the D

players used, more people can
be reached with each rupee spent.
hese efficiencies do not last, however; at some point, additional
advertising expenditure on new products will start to be less effective (an example of diseconomies of
scope). If a sales force is selling several products they can often do so more efficiently than if they
are selling only one product.
he cost of their travel time is distributed over a greater revenue base, so
cost efficiency improves.

here can also be synergies between products such that offering a complete range of products gives
the consumer a more desirable product offering than a single product would. Economies of scope can
also operate through distribution efficiencies. It can be more efficient to ship a range of products to
any given location than to ship a single type of product to that location.

alue added

Many players are using this D

as the basis and giving many value added services to the customers.
Some of the players are giving best valued services to the customers like Airtel gives live-news, home
shopping, live gaming, broad band, horoscope, radio, and etc.
ata sky is giving recording for more
than 4 hours, and came with a differential strategy of
ata sky+ with other facilities. Big
is giving
live with Big movies, Dish
is giving live
on the wheels, and many other value additions.

Logistics

Logistics is still a nascent and fragmented industry in India. It is estimated that while outsourced
logistics accounts for 54% of total logistics spending in India, organized players have only 10% of the
pie.

D

industry follows a good logistics which is as similar to the logistics which are used buy
automobile industry, for the effective management of the D

industry.

Labor

Labours are included in every activity of the business, most of the people working are not daily
labours, they are employed and paid monthly in the form of salary. D

requires skilled labor like
management executives, administrators, software engineers, sales executives and attorneys.

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Marketing

Market segmentation, marketing strategies, marketing practices and marketing concepts

specific to the industry

Indian
channel broadcast 15.7-mn advertisement every year, which totals to 362-mn
seconds of
advertisement every year. India currently has over 400 channels.

viewer ship has declined by 5% since 2001.

broadcasters are expected to go hike in
advertisement rate this year by 16-18%. Market segmentation in D

industry mainly
concentrates on women who don¶t like missing their daily soap and news more ever women
are able to learn English speaking which is a very special feature of D

. D

also
concentrates on children also by providing them games, dictionary, some discovery videos
specially inbuilt, maths, science and social knowledge. It also focuses on old people as it has
updated videos of various holy and religious places.

D

uses different marketing strategies for promotion and sales of its product. It gives
advertisements with their brand ambassadors which attract customers, door to door selling, on
the phone selling, discount and offer sales, packages, etc.

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Marketing practices is a continuous process as the competition keeps increasing among the
players in the industry. Each player is investing lots of money in promoting there brands.
Many players are making advertisement with movie actor and actress as brand ambassadors
for their products because D

is mainly considered with entertainment.

Some of the companies like

ata sky is having Super Star Amir khan as brand ambassador
and Airtel is having many film stars like kareena kapoor, A.R.Rehaman, saif ali khan, etc.
Dish
is also having Super Star Sharuk khan as the brand ambassador.

Sun direct also uses southern actress for their brand promotion. Marketing practices are the
decisions taken by the manufacturing company to increase sales, expand themselves into
many areas etc. Successful marketing practices bring sale up, while unsuccessful marketing
practices have no impact on sale or negatively impact sale.Marketing concepts specific to the
industry is primarily targeted at a niche segment who buy the
sets from the electronic
retail chains.

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Profit before tax -262.15 -475.55 -412.62 -251.08 -207.83
Net cashflow-operating activity 204.69 -267.09 -4.02 182.50 -24.37
Net cash used in investing activity -826.98 -507.67 -286.31 -330.43 -41.44
Netcash used in fin. activity 1,117.42 808.86 298.94 152.00 67.34
Net inc/dec in cash and equivlnt 488.19 34.09 8.61 4.07 1.53
Cash and equivalnt begin of year 54.04 19.94 11.33 7.26 4.41
Cash and equivalnt end of year 542.22 54.04 19.94 11.33 5.94
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Owners fund
Equity share capital 106.21 68.73 42.82 71.57 71.57
Share application money - - - - 74
Preference share capital - - - - -
Reserves & surplus 294.07 -692.8 -495.5 -82.3 45.97

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Secured loans 362.78 269.62 68.39 144.47 7.81
Unsecured loans 555.02 861.52 458.24 30.63 0.57

otal 1,318.07 507.07 73.95 164.37 199.91

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Fixed assets
Gross block 1,697.69 1,312.28 848.04 617.02 65.68
Less : revaluation reserve - - - - -
Less : accumulated depreciation 682.64 431.63 216.41 67.37 5.09
Net block 1,015.05 880.64 631.63 549.65 60.59
Capital work-in-progress 225.07 238.09 137.98 112.64 53.65
Investments 250.56 94.45 94.45 94.45 106.87

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Current assets, loans & advances 1,383.40 883.75 347.51 267.22 160.77
Less : current liabilities & provisions 1,556.00 1,589.87 1,137.61 859.59 181.97

otal net current assets -172.6 -706.12 -790.11 -592.37 -21.2
Miscellaneous expenses not written - - - - -

otal 1,318.07 507.07 73.95 164.37 199.91

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Book value of unquoted investments 250.56 94.45 94.45 94.45 106.87
Market value of quoted investments - - - - -
Contingent liabilities 56.04 155.15 47.05 264.78 57.95
 Number of equity sharesoutstanding
(Lacs) 10634.19 9463.72 4282.23 7156.88 715.69
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Operating income 1,084.79 737.69 412.74 190.94 31.46

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Material consumed 2.31 14.30 20.45 0.54 5.64

Manufacturing
566.05 435.28 296.36 207.57 69.14
expenses

Personnel expenses 39.71 38.71 29.39 14.87 2.15

Selling expenses 204.07 277.63 213.49 90.83 30.39

Adminstrative expenses 167.51 102.74 63.78 48.55 7.04

Expenses capitalised - - - - -

Cost of sales 979.65 868.66 623.47 362.36 114.36

Operating profit 105.15 -130.96 -210.73 -171.42 -82.89

Other recurring income 64.05 9.61 7.10 6.63 0.27

Adjusted PBDI
169.19 -121.35 -203.62 -164.80 -82.62

Financial expenses 124.09 113.44 60.77 18.68 1.95

Depreciation 303.79 215.41 149.05 57.53 2.83

Other write offs - - - - -

Adjusted PB
-258.70 -450.19 -413.44 -241.00 -87.40
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ax charges 0.01 0.73 0.58 0.25 0.03

Adjusted PA
-258.70 -450.92 -414.02 -241.26 -87.43

Non recurring items -3.45 -25.36 0.83 316.78 -120.43

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Equity
2009 2010 135.00 106.34 1063419475 1 106.34
Share
Equity
2008 2009 100.00 94.64 428222803 1 42.82
Share
Equity
2008 2009 100.00 94.64 518149592 1 25.91
Share
Equity
2007 2008 73.00 42.82 428222803 1 42.82
Share
Equity
2006 2007 73.00 71.57 715687650 1 71.57
Share
Equity
2005 2006 73.00 71.57 71568765 10 71.57
Share

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Adjusted EPS (Rs) -2.43 -4.76 -9.67 -3.37 -12.22

Adjusted cash EPS (Rs) 0.42 -2.49 -6.19 -2.57 -11.82

Reported EPS (Rs) -2.46 -5.03 -9.65 -3.52 -29.04

Reported cash EPS (Rs) 0.39 -2.76 -6.17 -2.72 -28.64

Dividend per share - - - - -

Operating profit per share (Rs) 0.98 -1.38 -4.92 -2.40 -11.58

Book value (excl rev res) per share (Rs) 3.76 -6.59 -10.57 -0.14 16.42

Book value (incl rev res) per share (Rs.) 3.76 -6.59 -10.57 -0.14 16.42

Net operating income per share (Rs) 10.20 7.79 9.64 2.67 4.40

Free reserves per share (Rs) 2.77 -7.32 -11.57 -1.15 6.42

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Operating margin (%) 9.69 -17.75 -51.05 -89.77 -263.46

Gross profit margin (%) -18.31 -46.95 -87.16 -119.90 -272.47

Net profit margin (%) -22.81 -63.73 -98.41 -127.49 -654.85

Adjusted cash margin (%) 3.92 -31.51 -63.11 -92.99 -266.56

Adjusted return on net worth (%) -64.63 - - - -74.39

Reported return on net worth (%) -65.48 - - - -176.82

Return on long term funds (%) -10.21 -216.17 - -168.68 -72.17

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Long term debt / Equity 2.29 - - - 0.01

otal debt/equity 2.29 - - - 0.07

Owners fund as % of total source 30.36 -123.07 -612.16 -6.52 93.34

Fixed assets turnover ratio 0.66 0.59 0.53 0.35 0.56

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Current ratio 0.88 0.55 0.30 0.31 0.88

Current ratio (inc. st loans) 0.88 0.45 0.22 0.29 0.81

Quick ratio 0.88 0.55 0.30 0.30 0.88

Inventory turnover ratio 390.22 238.48 87.59 167.92 66.28

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Dividend payout ratio (net profit) - - - - -

Dividend payout ratio (cash profit) - - - - -

Earning retention ratio - - - - -

Cash earnings retention ratio 100.00 - - - -

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Adjusted cash flow time total debt 20.35 - - - -

Financial charges coverage ratio 1.36 -1.07 -3.35 -8.82 -42.40

Fin. charges cov.ratio (post tax) 1.34 -1.30 -3.35 -9.40 -104.21

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Material cost component (% earnings) 0.18 1.71 5.82 0.63 19.42

Selling cost Component 18.81 37.63 51.72 47.56 96.59

Exports as percent of total sales 0.79 0.70 1.00 2.38 12.05

Import comp. in raw mat. consumed - - - - -

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Long term assets / total Assets 0.50 0.56 0.69 0.71 0.56

Bonus component in equity capital (%) - - - - -

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