STAKEHOLDERS EMPOWERMENT SERVICES NEXT …€¦ · TABLE 6 - TRADING VOLUME Particulars...

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STAKEHOLDERS EMPOWERMENT SERVICES

1 | P A G E

SECTOR: ENTERTAINMENT REPORTING DATE: 30TH NOVEMBER, 2017

NEXT MEDIAWORKS LTD. www.middaymultimedia.com

Next Mediaworks Ltd. NSE Code - NEXTMEDIA TABLE 1 - MARKET DATA (STANDALONE) (AS ON 27TH NOVEMBER, 2017)

Sector - Entertainment NSE Market Price (`) 20.80 NSE Market Cap. (₹ Cr.) 140.14

Face Value (`) 10.00 Equity (` Cr.) 66.89

Business Group – N.A. 52 week High/Low (₹) 29.20/15.70 Net worth (₹ Cr.)* 29.95

Year of Incorporation - 1981 TTM P/E (TTM) N.A. Traded Volume (Shares) 36,653

TTM P/BV 4.66 Traded Volume (lacs) 7.62

Registered Office - Source - Capitaline, TTM - Trailing Twelve Months, N.A. - Not Applicable, * As on 30th September, 2017

Unit Nos. I-17, I-18 and I-19, COMPANY BACKGROUND

Tardeo, 10th Floor, Next Mediaworks Limited is a holding company. The Company is engaged in the business

of publishing and broadcasting. The Company also provides management consultancy. The

Company is involved in a range of multimedia activities, including but not limited to the

business as broadcasters, marketers of television programs, television films and television

software; to carry on the business of an advertising agents, to provide on-line and/or

interactive information; online music and news for business and general use, and to deal in

Internet commerce and all Internet related activity.

The Company, through its subsidiary Next Radio Limited, operates Frequency Modulation

(FM) Radio stations in approximately seven cities in India, including Mumbai, Delhi,

Kolkata, Chennai, Bangalore, Ahmedabad and Pune under the Radio One brand. The

Company operates under the 94.3-megahertz (MHz) frequency in all its cities except for

the city of Ahmedabad where it operates under the frequency 95 MHz.

156, D J Dadajee Road,

Tardeo, Mumbai,

Maharashtra – 400 034

Company Website:

www.middaymultimedia.com

Revenue and Profit Performance

The revenue of the Company decreased from ₹0.24 crores to

₹0.22 crores from quarter ending Sep’16 to quarter ending

Sep’17. The Company made a loss of ₹0.40 crores in quarter

ending Sep’17 vis-a-vis making a loss of ₹0.68 crores in quarter

ending Sep’16.

Source: Money control

Performance vis-à-vis Market

TABLE 2- Returns

1-m 3-m 6-m 12-m

Next Mediaworks Ltd -1.65% 13.70% 2.97% 19.54%

Nifty 0.74% 4.09% 8.15% 27.94%

NIFTY Media 6.01% 9.28% 8.14% 29.49%

Source - Capitaline/NSE

0.22 0.23 0.24

-0.40

-0.71 -0.68

-1.00

-0.50

0.00

0.50

Sep'17 Mar'17 Sep'16

Quarterly revenue and Profit (₹ CRORE)

Revenue Profit

0.75

1.00

1.25

1.50

1.75

Dec 16 Feb 17 Apr 17 Jun 17 Aug 17 Oct 17

Next Mediaworks Ltd NIFTY NIFTY MEDIA

http://www.middaymultimedia.com/




2 | P A G E



TABLE 3 – FINANCIALS

(₹ Cr.) Sep’17 Mar’17 Sep’16 % Change

Sep ’17 vs Mar’17 Mar’17 vs Sep’16

Net Worth 29.95 28.92 26.75 3.56% 8.11%

Current Assets 1.26 0.49 0.79 157.14% -37.97%

Non-Current Assets 43.45 40.40 40.38 7.55% 0.05%

Total Assets 44.71 40.89 41.18 9.34% -0.70%

Investments 42.43 38.93 38.93 8.98% 0.00%

Finance Cost 0.26 0.39 0.36 -33.33% 8.33%

Long Term Liabilities 10.84 11.66 11.58 -7.03% 0.69%

Current Liabilities 3.92 0.31 2.85 1,164.52% -89.12%

Turnover 0.22 0.23 0.24 -4.35% -4.17%

Profit After Tax (PAT) -0.40 -0.71 -0.68 N.A. N.A.

EPS (₹) -0.06 -0.11 -0.10 N.A. N.A.

Source - Money Control/ Stock exchange filing

AUDIT QUALIFICATIONS

Audit Qualifications in last 3 years: The Statutory Auditor has not made any qualifications for FY 2015-16 and FY 2016-17.

However, Auditors have raised qualification for FY 2014-15.

Basis of qualified opinion for FY 2014-15 (Consolidated Financial Statements):

a) “As on the Balance Sheet date, one of its component have Deferred Tax Assets of ₹37.25 crores recognised on the basis of

unabsorbed Business Losses / unabsorbed Depreciation and expected profits in future. This is not in accordance with

Accounting Standard 22 on “Accounting for Taxes on Income” which requires that such assets should be recognized to the

extent that there is virtual certainty supported by convincing evidence that the future taxable income will be available against

which such assets can be realized. In our opinion this expectation cannot be considered as virtual certainty to recognize such

assets. Consequently, profits, the relevant asset and the reserves surplus for the year are overstated by ₹37.25 crores.

b) In respect of contribution to the cost of Common Transmission Infrastructure in one of the radio stations by one of its

component, which was hitherto in dispute and for which settlement was agreed during the year, the component has not

capitalized the asset. The amount to be impaired / written off is ₹0.93 crores. Consequently, the profit for the year, relevant

asset and the reserves and surplus are overstated ₹0.93 crores.”

Qualified Opinion for FY 2014-15:

“In our opinion and to the best of our information and according to the explanations given to us and based on the consideration

of the reports of the other auditors on the financial statements of the subsidiaries, as mentioned in the ‘Other Matter’ paragraph

below, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the aforesaid consolidated

financial statements give the information required by the Act in the manner so required and give a true and fair view in

conformity with the accounting principles generally accepted in India, of the state of affairs of the Group as at 31st March, 2015,

its profit and its cash flows for the year ended on that date.”

Response Comment

Frequency of Qualifications Not Applicable

Have the auditors made any adverse remark in last 3 years? No

Are the material accounts audited by the Principal Auditors? Yes -

Do the financial statements include material unaudited financial statements? No -




3 | P A G E



TABLE 4: BOARD PROFILE (AS PER ANNUAL REPORT - FY 2016-17)

Regulatory Norms Company

% of Independent Directors on the Board 50% 83%

% of Promoter Directors on the Board - 17%

Number of Women Directors on the Board At least 1 1

Classification of Chairman of the Board - Executive Promoter Director

Is the post of Chairman and MD/CEO held by the same person? - Yes

Average attendance of Directors in the Board meetings (%) - 93.33%

Composition of Board: As per Regulation 17(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,

2015 "Listing Regulations, 2015", the Company should have at least 50% Independent Directors as the Chairman of the Board is

a Promoter Executive Director. The Company has 83% of Independent Directors and hence, it meets the regulatory

requirements.

Board Diversity: The Company has 6 directors out of which 5 are male and 1 is female.

TABLE 5 - FINANCIAL RATIOS

Ratios Sep’17 Mar’17 Sep’16

% Change

Sep ’17 vs

Mar’17

Mar’17 vs

Sep’16

Turn

ove

r

Rat

ios

Inventory Turnover N.A. N.A. N.A. N.A. N.A.

Debtors Turnover 1.83 1.92 0.75 -4.35% 155.56%

Fixed asset Turnover 0.01 0.01 0.01 -11.06% -4.21%

Current Asset Turnover 0.17 0.47 0.30 -62.80% 54.51%

Ret

urn

Rat

ios Operating Profit Margin -177.27% N.A. N.A. N.A. N.A.

Net Profit Margin -181.82% -308.70% -283.33% N.A. N.A.

Return on Assets (ROA) N.A. N.A. N.A. N.A. N.A.

Return on Equity (ROE) N.A. N.A. N.A. N.A. N.A.

Return on Capital Employed (ROCE) N.A. N.A. N.A. N.A. N.A.

Liq

uid

ity

Rat

ios

Current Ratio 0.32 1.58 0.28 -79.66% 470.23%

Quick Ratio 0.32 1.58 0.28 -79.66% 470.23%

Cash Ratio 0.29 1.19 0.16 -75.63% 623.75%

Working Capital Turnover ratio N.A. N.A. N.A. N.A. N.A.

Solv

ency

Rat

ios Debt to equity ratio 0.36 0.29 0.43 25.51% -33.04%

Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.

Trad

ing

Rat

ios

Market Cap / Sales 547.32 647.09 469.63 -15.42% 37.79%

Market Cap/ Net Worth 4.02 5.15 4.21 -21.88% 22.14%

Market Cap/PAT N.A. N.A. N.A. N.A. N.A.

Market Cap/EBITDA N.A. N.A. N.A. N.A. N.A.

Source - Money Control/Stock exchange filing

TABLE 6 - TRADING VOLUME

Particulars Sep’17 Mar’17 Sep’16

% Change

Sep ’17 vs Mar’17 Mar’17 vs Sep’16

Trading Volume (shares) (avg. of 1 qtr) 69,396 1,53,308 83,236 -54.73% 84.19%

Trading Volume (shares) (high in 1 qtr) 3,21,370 14,30,522 4,30,569 -77.53% 232.24%

Trading Volume (shares) (low in 1 qtr) 8,974 3,366 18,043 166.61% -81.34%

Ratio - High/low trading volume 35.81 424.99 23.86 -91.57% 1,680.93%

Ratio - High/average trading volume 4.63 9.33 5.17 -50.37% 80.38%

Source - Capitaline




4 | P A G E



TABLE 7 (A): OWNERSHIP & MANAGEMENT RISKS

Sep-17 Mar-17 Sep-16 Comments

Shar

eho

ldin

g (%

)

Promoter

shareholding 61.88 60.98 60.98

• During the period from 01st Oct 16 to 30th Sept 17,

15,57,632 equity shares were issued to promoter group

under preferential allotment.

• The promoter shareholding increased from 60.98% to

61.88% due to allotment of shares on preferential basis.

• The shareholding of ‘public institution’ decreased from

2.79% to 2.72% and that of public others decreased from

36.23% to 35.40% during the same period.

• The promoters have pledged or encumbered 39.46% of

their shareholding.

Public - Institutional


Public - Others


Non-Promoter Non-

Public Shareholding 0.00 0.00 0.00

Source - NSE

MAJOR SHAREHOLDERS (AS ON 30TH SEPTEMBER, 2017)

S. No. Promoters Shareholding S. No. Public Shareholders Shareholding

1 Ferari Investments & Trading Co Pvt. Ltd. 16.77% 1 Bennett, Coleman & Co. Ltd 5.46%

2 Meridian Holding & Leasing Co Pvt. Ltd. 11.17% 2 Acacia Partners, LP 1.36%

3 Rukya Ansari 6.90%

4 Khalid Ansari 6.49%

5 Tehzeeb Ansari 6.48%

Source - NSE

TABLE 7 (B): OWNERSHIP & MANAGEMENT RISKS

Market Activity of Promoters The promoters have not sold/ bought any new shares in FY 2016-17.

Preferential issue to promoters In March 2017, the Company issued 15,57,632 equity shares of face value ₹10 each to the

promoters group of the Company through preferential offering.

Preferential issue to others No preferential issue of shares was made to other shareholders during FY 2016-17.

GDRs issued by the Company The Company did not issue any GDRs during FY 2016-17.

Issue of ESOPs/Issue of shares

other than Preferential allotment

The Company did not issue any shares to the employees under its ESOP Scheme in last one

year.

Source - Annual Report FY 2016-17

TABLE 8: PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

Sr. No. Name and Description of main products / services % to Total turnover of the Company

1 Publishing & Broadcasting 100

Source - Annual Report FY 2016-17




5 | P A G E



Glossary

Equity: The equity shares capital of the Company

Net Worth: The amount by which the Assets exceeds the liabilities excluding shareholders’ funds of the Company

Turnover: The revenue earned from the operations of the Company

EPS: Earning Per Share is net profit earned by the Company per share

𝐸𝑃𝑆 =Profit After Tax

Number of outstanding shares

P/E ratio: It is the ratio of the Company’s share price to earnings per share of the Company

𝑃/𝐸 𝑟𝑎𝑡𝑖𝑜 =Price of each share

Earnings per share

Current Assets: Cash and other assets that are expected to be converted to cash in one year

Fixed Assets: assets which are purchased for long-term use and are not likely to be converted quickly into cash, such as land,

buildings, and equipment

Total Assets: Current Assets + Fixed Assets

Investments: An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in

the future.

Finance Cost: The Financing Cost (FC), also known as the Cost of Finances (COF), is the cost and interest and other charges

incurred during the year in relation to borrowed money.

Long Term Liabilities: Long-term liabilities are liabilities with a maturity period of over one year.

Current Liabilities: A company's debts or obligations that are due within one year.

Inventory Turnover ratio: Inventory Turnover is a ratio showing how many times a company's inventory is sold and replaced

over a period.

𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Inventory

Debtors Turnover: Accounts receivable turnover is an efficiency ratio or activity ratio that measures how many times a business

can turn its accounts receivable into cash during a period

𝐷𝑒𝑏𝑡𝑜𝑟𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Accounts recievables

Fixed Asset Turnover: The fixed-asset turnover ratio is a financial ratio of net sales to fixed assets

𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Fixed Assets

Current Asset Turnover: The current-asset turnover ratio is a financial ratio of net sales to fixed assets

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Current Assets

Operating Profit Margin: Operating margin is a measurement of what proportion of a Company’s revenue is left over after

paying for variable costs of production such as wages, raw materials etc. It can be calculated by dividing a Company’s operating

income (also known as “operating profit”) during a given period by its sales during the same period.

𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =Operating profit

Sales Turnover

Net Profit Margin: Net profit margin is the percentage of revenue left after all expenses have been deducted from sales

𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =Net profit

Sales Turnover




6 | P A G E



Return on Assets: ROA tells you what earnings were generated from invested capital (assets)

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐴𝑠𝑠𝑒𝑡𝑠 =Net profit

Total Assets

Return on equity/net worth: return on equity (ROE) is the amount of net income returned as a percentage of shareholders’

equity.

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐸𝑞𝑢𝑖𝑡𝑦 =Net profit

Net worth

Return on Capital Employed: Return on capital employed (ROCE) is a financial ratio that measures a company's profitability

and the efficiency with which its capital is employed.

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑑 =Net profit

Total Debt + Equity share capital

Current ratio: The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts

over the next 12 months. It compares a firm's current assets to its current liabilities.

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑟𝑎𝑡𝑖𝑜 =Current Assets

Current Liabilities

Quick ratio: The quick ratio is a measure of how well a Company can meet its short term financial liabilities.

𝑄𝑢𝑖𝑐𝑘 𝑟𝑎𝑡𝑖𝑜 =Current Assets − Inventories

Current Liabilities

Cash ratio: The ratio of the liquid assets of a Company to its current liabilities.

𝑄𝑢𝑖𝑐𝑘 𝑟𝑎𝑡𝑖𝑜 =Current Assets − Inventories − Account Recievables

Current Liabilities

Working Capital Turnover ratio: The working capital turnover ratio is also referred to as net sales to working capital. It indicates

a Company's effectiveness in using its working capital.

𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =𝑆𝑎𝑙𝑒𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟

Current Assets − Current Liabilities

Debt to Equity ratio: The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of

shareholders' equity and debt used to finance a company's assets.

𝐷𝑒𝑏𝑡 𝑡𝑜 𝐸𝑞𝑢𝑖𝑡𝑦 𝑟𝑎𝑡𝑖𝑜 =𝑆ℎ𝑜𝑟𝑡 𝑇𝑒𝑟𝑚 𝐷𝑒𝑏𝑡 + 𝐿𝑜𝑛𝑔 𝑇𝑒𝑟𝑚 𝐷𝑒𝑏𝑡

𝑁𝑒𝑡 𝑊𝑜𝑟𝑡ℎ

Interest Coverage ratio: The Interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a

Company can pay interest on outstanding debt.

𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐶𝑜𝑣𝑒𝑟𝑎𝑔𝑒 𝑅𝑎𝑡𝑖𝑜 =𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝐵𝑒𝑓𝑜𝑟𝑒 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑎𝑛𝑑 𝑇𝑎𝑥

𝐹𝑖𝑛𝑎𝑛𝑐𝑒 𝐶𝑜𝑠𝑡

Market Cap/Sales ratio: Market Cap/sales ratio, Price–sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is

calculated by dividing the company's market cap by the revenue in the most recent year; or, equivalently, divide the per-

share stock price by the per-share revenue.

𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑆𝑎𝑙𝑒𝑠 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝑆𝑎𝑙𝑒𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟

Market Cap/ Net Worth ratio: It is a valuation ratio calculated by dividing Company’s market cap to net worth.

𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑁𝑒𝑡𝑤𝑜𝑟𝑡ℎ 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝑁𝑒𝑡𝑤𝑜𝑟𝑡ℎ

Market Cap/ PAT ratio: It is a valuation ratio calculated by dividing Company’s market cap to net profit.

𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑃𝐴𝑇 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝑛𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡

Market Cap/ EBITDA ratio: It is a valuation ratio calculated by dividing Company’s market cap to EBITDA.


http://www.investopedia.com/terms/i/invested-capital.asp

http://www.investopedia.com/articles/stocks/05/04405.asp

https://en.wikipedia.org/wiki/Stock

https://en.wikipedia.org/wiki/Market_cap

https://en.wikipedia.org/wiki/Stock



7 | P A G E



𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝐸𝐵𝐼𝑇𝐷𝐴 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝐸𝐵𝐼𝑇𝐷𝐴

Trading Volume (shares) (avg. of 1 year): Average number of shares/day traded in 1 year

Trading volume (shares) (high in 1 year): Highest number of shares/day traded in 1 year

Trading volume (shares) (minimum in 1 year): Lowest number of shares traded on any one day in 1 year




8 | P A G E



DISCLAIMER

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Research Analyst: Mukesh Solanki


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http://www.sesgovernance.com/

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