Description
Television (TV) is a telecommunication medium for transmitting and receiving moving images that can be monochrome (black-and-white) or colored, with or without accompanying sound. "Television" may also refer specifically to a television set, television programming, or television transmission.
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Particulars Acknowledgement Introduction - Meaning - History of Indian television - Industry overview - Reasons for selecting the project Environmental Scanning - SWOT Analysis - PEST Analysis Project at a glance Legal feasibility - Laws - Policy guidelines for uplinking & down linking - Formation of company Technical feasibility - What is technical feasibility? - Technical facilities - Furniture & Miscellaneous assets - Requirement of utilities - Location Analysis - Plant layout Human Resource feasibility - Organization chart - Job profile - Employee welfare & retention Marketing feasibility - 7 p’s of marketing - Marketing research - Findings & conclusions Financial feasibility - Cost of project - Means of finance - Assumptions of financial statement - Working capital statement - Income Expenditure Statement - Balance sheet - Cash flow statement - Ratios - Evaluation of project
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ACKNOWLEDGEMENT
An acknowledgement, which is so often overlooked by people who read a project. This is very important and integral part of the project. This has proved to be the first step towards globalize world along with healthy management skills. This project has been through out a great learning about Entertainment TV channel. We take this opportunity to express our heart felt gratitude towards all those who generously helped us with their knowledge and experience. Sometime it is easy to get the theoretical knowledge, but getting practical knowledge is an important thing which is not possible without the support, guidance, motivation and inspiration provided by different persons. We are highly indebted to Prof. Sarla Achuthan, Director of “K.S. SCHOOL OF BUSINESS MANAGEMENT” Who gave us chance of implying ourselves in such a project assignment. We would like to thank Mr. Kaushik Trivedi for his kind support and criticisms that he had expanded to us at every junction of our air journey. Here we would like to add warm thanks to all management faculty members of our institute. We take this opportunity to thank all the members and employee of Doordarshan Kendra, Zee Gujarati, E TV Gujarati, GTPL for giving their full co-operation. As it is not possible to name individually everyone who helped us directly or indirectly, let us suffice to say that their cooperation was of immense use to us. So, we thank all of them.
INTRODUCTION
• Meaning • History of Indian Television • Industry Overview • Reasons for selecting the project/scope
WHAT A T.V. CHANNEL IS ?
Entertainment means amusement or pleasure. ‘T.V. Station’ is a broadcast station that transmits both audio and video signals to television receivers in a particular area. According to The Prasar Bharati Act,1990 ‘Broadcasting’ means the dissemination of any form of communication like signs, signals, writing, pictures, images and sounds of all kinds by transmission of electromagnetic waves through space or through cables intended to be received by the general public either directly or indirectly through the medium of relay stations. T.V. Channel is a set up which collects different programmes which are either inhouse productions or purchased from outside i.e. outhouse production and then telecast it to the viewers. Entertainment T.V. channel have the programmes meant for entertainment of people. Entertainment programmes may include family drama, youth oriented series, reality shows, mythological drama, music based shows, comedy programmes, talk shows, game shows, cookery shows etc.
HISTORY OF INDIAN TELEVISION
Television in India has been for nearly four decades. Doordarshan, a publics sector broadcaster is among the largest terrestrial television network in the world. The service was started in New Delhi on 15 September,1959 to transmit educational and development programmes on an experimental basis with half an hour programming. Doordarshan was established on 15 September 1976. For the first 17 years, it spread haltingly and transmission was mainly in black and white. The government looked down on it as a luxury Indians could do without. Sales of TV sets, as reflected by licenses issued to buyers were just 6,76,615 until 1977. However, there were a few events that propelled television to the forefront in the past two decades. The first was in the eighties when colour television was introduced by the state owned broadcaster DD, in conjunction with the 1982 asian games which India hosted. DD then rapidly proceeded to install transmitters nationwide for terrestrial broadcasting. In 1984 more or less every day saw the insallation of a transmitter in the country. In this period no private enterprise was allowed to set up television station or to transmit television signals. During this period, Indian viewers had to make do with DD’s dull, non-commercial programming, mainly directed towards education and socio-economic development. Entertainment programmes were few and far between. So when the solitary few soaps like Hum Log(1984), and mythological dramas like Ramayan(1987-88) and Mahabharat(1988-89) were televised, millions of viewers stayed glued to their sets. The second boost came in the early nineties with the broadcast of satellite television into Indian homes, first by programmers like CNN and Star TV, and a little later by domestic channels such as Zee TV and Sun TV. Soon, from the large metros satellite television delivered via cable moved into smaller towns, spurring the purchase of TV sets and even the upgrade from black and white to colour televisions.DD responded to this satellite television invasion by launching an entertainment and commercially driven channel and also by introducing entertainment programming on its terrestrial network. This again fuelled the purchase of television sets in the rural areas where cable television was not available.
The initial success of the channels had a magnifying effect: more foreign programmers and Indian entrepreneurs kick started their own versions. From two channels prior to 1991, Indian viewers were exposed to more than 50 channels by 1996. The TV has just got bigger. Going by the plans of various media houses, the next two years will see 700 channels from existing almost 350 channels many of which will be in the General Entertainment segment.
INDUSTRY OVERVIEW (GENERAL)
India today ranks among the top five economies of the world when assessed in terms of purchasing power parity. Adding to this outlook is the fact that the average Indian is showing a greater propensity to indulge and entertain himself. The Indian entertainment Industry is thriving on the current economic upswing and is currently estimated to be INR 222 billion. Propelled by innovation across its value chain and a series of enabling regulatory actions the entertainment industry is expected to grow annually at almost 18 percent to reach INR 588 billion by 2010.
The entertainment industry has been aided by the fact that India has been the second fastest growing economy in the world. In 2004 it grew by 8.2%. In terms of purchasing power parity it is already the fourth largest economy in the world. Major companies are of the opinion that it will become a key market in the years to come. As the Indian economy continues growing, the Indian middle class has also expanded significantly. Compared to the other nations, the 300 million strong Indian middle class allocates a higher percentage of its monthly expenditure on Entertainment. There is an increase in the direct consumer spends on entertainment and advertising revenues have also been on the rise. The entertainment industry is now at an inflection point. The earlier phase of growth has run its course. Now the industry is ready to enter a second stage of growth powered by the twin engines of
technology and an enabling regulatory environment. The increasing penetration of technology is a major force shaping the entertainment landscape today. It will completely revolutionize content delivery as well as the viewer ship experience. Due to the imminent impact of these and other technologies, the successful media and entertainment companies will be the ones that are prepared for their disruptive effects on their models and the industry structure. Due to its sheer size, television has been the main driver for Industries growth contributing 62% of the overall industries growth. With total revenues of INR 139 billion, television is the goliath of the entertainment industry. It is now ready to advance to the next stage of its evolution, grasping the opportunities presented by the digital age, which will completely change the home entertainment landscape. In the process it is expected to continue its rapid growth and reach INR 371billion by 2010. (Source CII-KPMG Report
Subscription revenues are projected to be the key growth driver for the Indian television industry over the next five years. Subscription revenues will increase both from the number of pay TV homes as well as increased subscription rates. The buoyancy of the Indian economy will drive the homes, both in rural and urban (second TV set homes) areas to buy televisions and subscribe for the pay services. New distribution platforms like DTH and IPTV will only increase the subscribe base and push up the subscription revenues.
India currently continues to have low 'advertising spend to GDP' ratios compared to other economies, underscoring the untapped potential. In 2004, the advertising spend for India stood at .50% of the GDP, up from 48% the previous year. This is expected to increase significantly due to the rising consumerism and growing interest from global brands attracted by this huge and expanding market.
The Indian Television Sector
The Indian television market consists of terrestrial broadcasting which is provided solely by the state-owned broadcaster, Doordarshan, and cable and satellite broadcasting, which is provided by Doordarshan as well as other Indian and foreign broadcasters. The Indian television market had more than 119 million television households at the end of fiscal 2004, making it the third largest television market in the world after the United States and China. Of these, about 50 million households were cable television households, which represent a penetration rate of approximately 42% of the total television households and approximately 25% of the total households in India. The percentage of households with televisions was approximately 60% in fiscal 2004. An estimated nine million television sets were sold in India in 2004. Of the 25 million households that bought television sets over the three fiscal years ended March 31, 2004, 19 million, or 77% were rural households. (Source: CII-KPMG Report) Structure of the Indian Television Broadcasting Industry: The Indian television broadcasting industry can be divided into two categories. Terrestrial broadcasting This is broadcast through transmitters and received by households through antennas. Prasar Bharati (Broadcasting Corporation of India) is the only terrestrial broadcaster in India and is owned by the Government of India. It operates several channels under the umbrella brand "Doordarshan". As the terrestrial broadcaster, all television households can potentially access Doordarshan. In addition to its national channels in Hindi and English, Doordarshan broadcasts several regional language channels that are broadcast in particular regions of the country. Cable and satellite broadcasting This is broadcast by uplink of the channel to a satellite, which then provides the downlink signal to a wide region. Ground-based cable distributors through dish antennas, amplifiers and decoders receive the downlink signal. The distribution of cable and satellite channels to households is then carried
out by cable. There are a large number of operators in India, consisting of MSOs, as well as LCOs who provide the "last mile" connection. In most areas, there is only one provider of the last mile connection. DTH DTH is currently offered in India by DishTV, which is a part of the Zee TV Group and DD Direct Plus, which is a part of Doordarshan. Recent press reports indicate that there will be other entrants into the DTH business in the near future, including a joint venture between the TATA group and Star TV. Revenue Streams The revenues of cable and satellite broadcasters generally consist of the following sources: _ Advertising; _ Subscription, including from international arrangements; and _ Content syndication Advertising Broadcasters earn revenues from advertising by selling time spots that are interspersed in the channel's regular programmes, sponsorships (including title sponsorships) and banners/crawlers that are displayed on a part of the television screen while regular programmes are broadcast. The television advertising market has grown over the last several years, particularly as the share of advertising on television relative to all media has grown. Revenues from Indian television advertising were about Rs. 49.00 billion in fiscal year 2005, which represented 47% of the total revenues from advertising on all kinds of media in India in that year of approximately Rs. 139.0 billion. The following chart shows the share of television advertising as compared to other forms of media advertising in India in fiscal 2004.
Subscription Broadcasters provide cable channels to cable operators either on a "free to air" basis or a pay basis. In the case of pay channels, the cable operators receive monthly fees from subscribers, which are shared with the broadcaster based on the number of subscribers declared by the cable operators. The Indian cable and satellite television market has also been characterized by relatively low subscription rates, or the monthly fees paid by subscribers, compared to other countries. In addition, there has been alleged underreporting of subscriber numbers by some operators. Average subscription rates in India for cable and satellite channels were approximately Rs. 150 pr subscriber per month in 2004. (Source: CII KPMG) Subscription revenues have grown in recent years due to expansion of the number of cable and satellite homes, as well as the development of pay channels. Broadcasters also earn revenue for the broadcast of their programming in other countries. This is done through various technologies, such as cable, DTH and terrestrial broadcast, through arrangements with broadcasters, cable operators and other industry participants. Typically, these are revenuesharing arrangements based on the total number of subscribers. Content Syndication Broadcasters also sell content from their libraries to other users, including other broadcasters and content producers India has a comparatively low proportion of advertising expenditures to GDP: At 0.5% in 2004, India continues to have one of the lowest 'Advertising spends to GDP' ratios amongst peer economies. This underscores the significant potential India has yet to achieve vis-à-vis advertising budgets. Increase in television advertising's share of total advertising revenue: The share of television advertising as a percentage of total advertising revenue grew steadily in the 1990s. Although it has remained relatively stable in recent years at around 41%, there may be potential for further
growth with increased consumerism and the continued entry of global brands in India. Increase in cable revenues: In addition to possible growth due to an increase in the number of cable and television homes, overall subscription revenues may grow as more channels become pay channels and if subscription rates increase. In addition, the share of subscription revenues allocated to broadcasters could increase with the implementation of the CAS, DTH and other new technologies, as well as regulatory or other measures that could potentially address the problem of under-reporting of subscribers.
REASONS FOR SELECTING THE PROJECT
Main reasons which led us to select this project are as follows: • Youth - The average Indian is getting younger and is showing a greater propensity to indulge and entertain themselves. • There is least brand loyalty seen in the segment and thus it is not very difficult for a new entertainment channel to sustain if the content is good. • Increasing trend of television ad revenue.
ENVIRONMENTAL SCANNING
• SWOT Analysis S- Strength W-Weakness O- Opportunity T-Threat • PEST Analysis P- Political E- Economical S- Social T- Technological
SWOT Analysis • Strength: • Cooperating facility that is a TV set is easily available and has become an indispensable fixture in all upper and middle class households, and is not uncommon even in poorer homes in urban slums and rural houselolds. • As stress is increasing in the life of people the demand for entertainment set to increase. • Weakness: • TV entertainment entertainment. is not as mobile as radio
• Restriction on foreign investment in our Company, limits our ability to raise capital outside India. • Threat: • Alternatives available for entertainment are increasing day by day. Radio is increasingly used by youth as a source of entertainment. Other emerging entertainment providers are multiplexes, Social networking sites, Gaming Zones, Malls etc.. Hindi General
• Increasing competition in the Entertainment Channel segment.
• Our business is subject to extensive regulation by the Government, and failure to comply with such regulations could have an adverse effect on our business.
•
The Indian cable television market suffers from the inherent limitation of under-reporting of pay channel subscription numbers by cable operators. Our pay channel revenues may suffer due to under— subscription numbers. • Our operations are subject to a degree of risk pertaining to technological breakdowns including our information technology based communication system, which may disrupt our operations. • Our operations are subject to hazards inherent to information technology based communication system which links our operations. In the case of a technological breakdown, the process of broad-casting the channels may be adversely affected. This may adversely affect our business and operations. • Misappropriation of our Intellectual Property Rights could harm our competitive position. • Opportunity: • The no of C&S (Cable and Satellite connected) homes are increasing and thus the market coverage is also increasing. • Television ad revenue size is also showing increasing trend.
PEST Analysis The acronym PEST is used to describe a framework for the analysis of these macro environmental factors. • Political Environment: General political atmosphere, particular political stability is very important for the successful and smooth operation of the business. It covers those factors which restrain or facilitate the business through the government action. It may include political atmosphere, political parties, government administration, political stability etc. Our business will also be influenced by the political changes. A change in the administration at the centre may also lead to changes in the policy regarding DTH services, IPTV (Internet Protocol Television).It may cause change in our policy also. Acceptance or rejection of any new technology pertaining to telecasting or distribution of channels also depends upon the ideology of the political party ruling at that time. • Economic Environment: The economic environment also affects our business. Demand for entertainment may not be affected due to recession. However our advertisement revenue may be adversely affected due to recession. • Social Environment: Social factors include demographic and cultural aspects of the external macro environment. These factors affect the customers’ need and the size of the potential market. • Technological Environment: One of the most important aspect of shaping people’s lives is technology. The organization which moves with latest technology can excel their growth. Every new technology is a force for creative
destruction. Moreover the innovating process always leads to an increase in the investment. Technological inventions are introduced for higher productivity, lower cost, and more revenue. Technology refers to sum total of the knowledge providing ways to do things. Organization must give constant consideration to the manner in which innovation may affect their product and internal operating efficiency. In TV channel also technological inventions of newer machineries are of quite importance. New technologies available for distribution of content like IPTV, DTH, GTPL etc. and newer technologies for TV sets does also affect the size of the potential market. For instance distribution of channels through DTH television will give better picture quality and thus more satisfied target market.
PROJECT AT A GLANCE
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Name Nature of the Industry Location Constitution Date of Incorporation TV Channel as a service Total cost of project Means of finance Payback Period Net Profit ratio Cash Profit ratio Current ratio Return on capital employed Interest Coverage ratio Ours Entertainment Pvt. Ltd. Media and Entertainment Industry Navarangpura , Ahmedabad Private Company 1st April , 2009
Feasibility Study
A good feasibility study is more than just a set of financial projections. Done properly, it becomes the market-driven strategic plan that is the road map for all the subsequent decisions. A good study addresses the question of what is most feasible and what should be to assure maximum success. Steps of Feasibility Study: 1. Market Survey: It helped us to have the survey of consumers; survey gave us the idea of the preference of the consumers. 2. Professors: All the faculty members helped us at every junction of this journey. 3. Organizations: By visiting TV channels like Doordarshan, ETV Gujarati, we got first hand information regarding some aspects of the organization. 4. Banks: Information regarding loans was sourced by consulting various banks.
LEGAL FEASIBILITY
• Laws • Policy guidelines for uplinking and downlinking • License procedure and forms • Formation Of Company
Following are some of the laws very relevant for our business:
The Cable Television Networks Act Almost everybody in the country is familiar with the cable television. It has been spreading its wings from the initial urban cities, right to the remote villages. There has been a haphazard mushrooming of cable television networks all over the country due to the availability of signals of foreign television networks via satellites. To check the screening of undesirable programmes and advertisements which are screened on these channels and to regulate the operation of the cable television networks in the country, so as to bring uniformity in their functioning, the Cable Television Networks (Regulation) Act was passed in both the Houses of the Parliament. The Broadcasting Bill, 1997 The Bill is to provide for an independent authority to be known as the Broadcasting Authority of India which is for the purpose of facilitating and regulating broadcasting services in India. The Indian Telegraph Act 1885 The Indian Telegraph Act 1885 came into force on 1st October,1885. "Telegraph" means any appliance, instrument, material or apparatus used or capable of use for transmission or reception of signs, signals, writing, images, and sounds or intelligence of any nature by wire, visual or other electro-magnetic emissions, Radio waves or Hertzian waves, galvanic, electric or magnetic means. The Indian Telegraphic Act, 1885 was an Act to amend the law relating to Telegraphs in India. The Copyright Act, 1957 "The importance of copyright was recognized after the invention of the printing press which enabled the reproduction of books in large quantity. The Indian Copyright Act was thus passed in 1914. But, during the last four decades, modern and advanced means of communications like broadcasting,
litho-photography, television, etc made inroads in the Indian economy. It necessitated the fulfillment of international obligations in the field of Copyright. A comprehensive legislation had to be introduced to completely revise the Copyright law. This was achieved by the introduction of a Copyright Bill, 1957 in the Parliament The Telecom Regulatory Authority of India (TRAI) formed under the TRAI Act 1997 is also a regulatory body for Broadcasting Industry.
Legal Guidelines laid down by information and broadcasting ministry of India for uplinking and downlinking of TV channels.
GUIDELINES FOR UPLINKING FROM INDIA
New Delhi Dated: December 2, 2005. PREAMBLE
Ministry of Information and Broadcasting, Government of India notified the “Guidelines for uplinking from India” in July 2000. This was followed by “Guidelines for Uplinking of News and Current Affairs TV Channels from India” in March 2003, which were amended in August 2003, “Guidelines for use of SNG/DSNGs” in May 2003 and addendum dated 1.4.2005 to the uplinking guidelines. The Government has, on 20th October 2005 further amended these guidelines. It has now been decided that all these guidelines should be consolidated into one set of guidelines and notified. Accordingly, in supercession of all previous guidelines, the Government hereby notifies the following consolidated uplinking guidelines. These shall come into effect from today the 2 nd December 2005 and would be applicable to existing channels as well.
GENERAL
The applicant seeking permission to set up an uplinking hub/ teleport or uplink a TV Channel or uplink facility by a News Agency should be a company registered in India under the Companies Act, 1956.
1. PERMISSION TELEPORTS. 1.1 FOR SETTING UP OF UPLINKING HUB/
Eligibility Criteria.
1.1.1 In the applicant company, the foreign equity holding including NRI/OCB/PIO should not exceed 49%.
1.1.2 The Company should have a minimum Net Worth as prescribed below: Item Teleport for single channel capacity Teleport for 6 channel capacity Teleport for 10 channel capacity Teleport for 15 channel capacity 1.2 Period of Permission. Required Net Worth Rs. 1.00 Crore Rs. 1.50 Crore Rs. 2.50 Crore Rs. 3.00 Crore
1.2.1 Permission shall be granted for a period of 10 years. 1.3 Fee.
1.3.1 The applicant will pay an amount of Rs. Ten thousands as processing fee. 1.3.2 After being held eligible, the applicant company shall pay a permission fee at the rate of Rs. Five Lakhs per teleport. 1.4 1.4.1 Special Conditions/ Obligations. The company shall uplink only those TV channels which are specifically approved or permitted by the Ministry of I&B for uplinking from India.
1.4.2 The company shall stop uplinking TV channels whenever permission/approval to such a channel is withdrawn by the Ministry of I&B. 1.4.3 The applicant company shall abide by the general terms and conditions laid down in Para 5 below.
2.
PERMISSION FOR UPLINKING A NON-NEWS & CURRENT AFFAIRS TV CHANNEL.
[Note: For the purpose of these guidelines, a non-News & Current Affairs TV channel means a channel which does not have any element of news & current Affairs in its programme content.] 2.1 Eligibility Criteria.
2.1.1 The applicant company, irrespective of its ownership, equity structure or management control, would be eligible to seek permission. 2.1.2 The Company should have a minimum Net Worth as prescribed below: Item Single TV channel For each additional TV channel 2.2 Period of Permission. Required Net Worth Rs. 1.50 Crore Rs. 1.00 Crore
2.2.1 Permission shall be granted for a period of 10 years. 2.3 Fee.
2.3.1 The applicant will pay an amount of Rs. Ten thousands as processing fee. 2.3.2 After being held eligible, the applicant company shall pay a permission fee at the rate of Rs. Five Lakhs per channel. 2.4 Special Conditions/ Obligations.
2.4.1 The applicant company shall obtain registration for each channel, in accordance with the procedure laid down under the Downlinking Guidelines notified by the Ministry of Information & Broadcasting separately. 2.4.2 The applicant company permitted to uplink shall operationalize the channel within a period of one year from the date the permission is granted by the Ministry of I&B; failing which the permission is liable to be withdrawn, after affording an opportunity of being heard. 2.4.3 The sports channels/sports rights management companies having TV broadcasting rights shall with immediate effect share their feed with
Prasar Bharati for national and international sporting events of national importance, held in India or aboard, for terrestrial transmission and DTH broadcasting (free-to-air) under the following conditions: i) The events of national importance shall be determined by the Ministry of Information & Broadcasting in consultation with Ministry of Sports & Youth Affairs, Prasar Bharati and the concerned sports channels/sports rights management companies. In case of cricket events, these shall include all matches featuring India and the semi-finals and finals of international competitions. The above conditions shall apply to all future events including those covered by existing contracts of broadcasting rights. However, in the case of cricket events whose broadcasting rights have been obtained by sports channels/right management companies prior to the issue of the notification in the matter the rights holders will be obliged to share the feed for all matches featuring India and finals of international competitions. Prasar Bharati shall transmit the feed, free to air, on its terrestrial channel and carried through the terrestrial network and/or the satellite/DTH mode. The marketing of the events’ rights (terrestrial as well as satellite/DTH) will be decided through mutual negotiations between Prasar Bharati and the rights holder. The marketing rights should go to the party which offers to maximize the revenue. Revenue sharing formula of 75:25 in favour of rights holders without any minimum guarantee/opportunity cost, should be applied.
ii)
iii)
iv)
v)
In the event of any dispute, the matter shall be referred to an arbitrator to be appointed by Secretary, Ministry of Law and Justice out of the approved panel of arbitrators.
2.4.4 The applicant company shall abide by the general terms and conditions laid down in Para 5 below.
POLICY GUIDELINES FOR DOWNLIKING OF TELEVISION CHANNELS
Ministry of Information and Broadcasting, Government of India, has formulated policy guidelines for downlinking all satellite television channels downlinked / received / transmitted and re-transmitted in India for public viewing. Consequently, no person/entity shall downlink a channel, which has not been registered by the Ministry of Information and Broadcasting under these guidelines. Henceforth, all persons/ entities providing Television Satellite Broadcasting Services (TV Channels) uplinked from other countries to viewers in India as well as any entity desirous of providing such a Television Satellite Broadcasting Service (TV Channel), receivable in India for public viewership, shall be required to obtain permission from Ministry of Information and Broadcasting, in accordance with the terms and conditions prescribed under these guidelines.
The guidelines are as given below: 1. 1.1 ELIGIBILITY CRITERIA FOR APPLICANT COMPANIES The entity applying for permission for downlinking a channel,
uplinked from abroad, (i.e. Applicant Company), must be a company registered in India under the Indian Companies Act, 1956, irrespective of its equity structure, foreign ownership or management control.
1.2
The applicant company must have a commercial presence in India
with its principal place of business in India. 1.3 The applicant company must either own the channel it wants
downlinked for public viewing, or must enjoy, for the territory of India, exclusive marketing/ distribution rights for the same, inclusive of the rights to the advertising and subscription revenues for the channel and must submit adequate proof at the time of application. 1.4 In case the applicant company has exclusive marketing / distribution rights, it should also have the authority to conclude contracts on behalf of the channel for advertisements, subscription and programme content. 1.5 The applicant company should have a minimum net worth as
prescribed below: Item 1. For downlinking one Channel 2. Every Additional Channel 1.6 Required net worth of the Co. Rs 1.50 Crores Rs.1.00 Crores
The applicant company must provide names and details of all the
Directors of the Company and key executives such as CEO, CFO and Head of Marketing etc to get their national security clearance. 1.7 The applicant company shall furnish, technical details such as
Nomenclature, make, model, name and address of the manufacturers of the equipments/instruments to be used for downlinking and distribution, the Block schematic diagram of the downlinking and distribution system and
also demonstrate the facilities for monitoring and storing record for 90 days.
1.8 The Applicant Company should not have been disqualified from holding such permission under these guidelines.
2.
ELIGIBILITY
CRITERIA
FOR
REGISTRATION
OF
CHANNELS FOR BEING DOWNLINKED 2.1 Only Companies permitted/eligible for permission to downlink, as per
Clause 1 above, shall be eligible to apply for registration of channels. 2.2 The downlinked channel must be licensed or permitted for being regulatory or licensing authority of the country of
broadcast by the application. 2.3
transmission, proof of which would have to be submitted at the time of
The channel being registered should not have been de registered under
these guidelines at the time of application. 2.4 No News and Current Affairs channel shall be permitted to be
downlinked if it does not meet the following additional conditions: 2.4.1 That it does not carry any advertisements aimed at Indian viewers; 2.4.2 That it is not designed specifically for Indian audiences; 2.4.3 That it is a standard international channel;
2.4.4 That it has been permitted to be telecast in the country of its uplinking by the regulatory authority of that country; Provided that the Government may waive/modify the condition under clause 2.4.1 on a case-by-case basis. 2.5 For the purposes of these guidelines any channel, which has any
element of news or current affairs in its programme content, will be deemed to be a news and current affairs channel. 2.6 Companies whose channels are being downlinked at present will be
required to comply with all formalities of registration of these channels within 180 days from date of issue of these guidelines. In addition these companies will be required to obtain the necessary permission for downlinking their respective channels under these guidelines within 180 days from date of issue of these guidelines. 3. PERIOD OF REGISTRATION AND PERMISSION
The Ministry of Information and Broadcasting shall grant registration to each channel for an initial period of 5 years, which shall be extendable thereafter as per extant Rules. The applicant company will be granted permission for one or more years up to a maximum of five years, coterminus with the registration of the channel. 4. 4.1 REGISTRATION FEE AND PERMISSION FEE The Applicant Company shall pay registration fee of Rs.5 Lakhs for
each channel, which will be payable for the initial registration for a period of
five years. Extension beyond five years shall be again for a period of five years at the above prescribed rate. 4.2 Every company permitted to downlink channels, uplinked from other
countries, into India under these guidelines, shall pay Rs 5 Lakhs as the initial fee before the signing of the Grant of Permission Agreement. In addition, every company shall pay an amount of Rs. 1 lakh per channel per annum as the annual fee. 4.3 The company permitted to downlink channels into India under the
uplinking guidelines, shall register every channel separately. 5. 5.1 BASIC CONDITIONS/OBLIGATIONS The Company permitted to downlink registered channels shall comply
with the Programme and Advertising Code prescribed under the Cable Television Networks (Regulation) Act, 1995. 5.2. The sports channels/sports rights management companies having TV broadcasting rights shall with immediate effect share their feed with Prasar Bharati for national and international sporting events of national importance, held in India or abroad, for terrestrial transmission and DTH broadcasting (free-to-air) under the following conditions: 5.2.1 The events of national importance shall be determined by the
Ministry of Information & Broadcasting in consultation with Ministry of Sports & Youth Affairs, Prasar Bharati and the concerned sports channels/sports rights management companies. In case of cricket events,
these shall include all matches featuring India and the finals and semi-finals of international competitions. 5.2.2 The above conditions shall apply to all future events including
those covered by existing contracts of broadcasting rights. However, in the case of cricket events whose broadcasting rights have been obtained by sports channels/rights management companies prior to the issue of the notification in the matter, the rights holders will be obliged to share the feed for all matches featuring India and finals of international competitions. 5.2.3 mode. 5.2.4 The marketing of the events’ rights (terrestrial as well as Prasar Bharati shall transmit the feed, free to air, on its terrestrial
channel and carried through the terrestrial network and/or the satellite/DTH
satellite/DTH) will be decided through mutual negotiations between Prasar Bharati and the rights holder. The marketing rights should go to the party, which offers to maximize the revenue. 5.2.5 Revenue sharing formula of 75:25 in favour of rights holders without any minimum guarantee/opportunity cost should be applied. In the event of any dispute, the matter shall be referred to an arbitrator to be appointed by Secretary, Ministry of Law & Justice out of the approved panel of arbitrators. 5.3 The applicant company shall adhere to any other Code/Standards guidelines/restrictions prescribed by Ministry of Information &
Broadcasting, Government of India for regulation of content on TV channels from time to time. 5.4 The applicant company shall submit audited annual accounts of its
commercial operations in India. 5.5 The applicant company shall obtain prior approval of the Ministry of I
& B before undertaking any upgradation, expansion or any other changes in the downlinking and distribution system/network configuration. 5.6 The applicant company shall providesatellite TV channel signal
reception decoders only to MSOs/Cable operatorregistered under the Cable Television Networks (Regulation) Act 1995 or to a DTHoperator registered under the DTH guidelines issued by Government of India or toan Internet Protocol Television (IPTV) Service Provider duly permitted undertheir existing telecom license or authorized by Department of Telecom to providesuch service. 5.7 The applicant company shall ensure that any of its channels, which is
unregistered or prohibited from being telecast or transmitted or retransmitted in India, under the Cable Television Networks (Regulation) Act 1995 or the DTH guidelines or any other law for the time being in force, cannot be received in India through encryption or any other means. 5.8 The Union Government shall have the right to suspend the permission
of the company/registration of the channel for a specified period in public interest or in the interest of National security to prevent the misuse of the channel. The company shall immediately comply with any directives issued in this regard.
5.9
The applicant company seeking permission to downlink a channel
shall operationalise the channels within one year from the date of the permission being granted by the Ministry of I&B, failing which the permission will liable to be withdrawn without any notice in this regard. However, the company shall be afforded a reasonable opportunity of being heard before such a withdrawal. 5.10 The company/channel shall adhere to the norms, rules and regulations prescribed by any regulatory authority set up to regulate and monitor the Broadcast Services in the country. 5.11 The applicant company shall give intimation to Ministry of I & B regarding change in the directorship, key executives or foreign direct investment in the company, within 15 days of such a change taking place. It shall also obtain security clearance for such changes in its directors and key executives. 5.12 The applicant company shall keep a record of programmes
downlinked for a period of 90 days and to produce the same before any agency of the Government as and when required. 5.13 The applicant company shall furnish such information as may be required by the Ministry of I&B from time to time. 5.14 The applicant company shall provide the necessary monitoring facility at its own cost for monitoring of programmes or content by the representative of the Ministry of I&B or any other Government agency as and when required.
5.15
The applicant company shall comply with the obligations and
conditions prescribed in the downlinking guidelines issued by the Ministry of I&B, and the specific downlinking permission agreement and registration of each channel. 5.16 In the event of any war, calamity/national security concerns, the
Government shall have the power to prohibit for a specified period the downlinking/ reception/ transmission and re-transmission of any or all channels. The Company shall immediately comply with any such directions issued in this regard. 6.OFFENCES AND PENALTIES 6.1 In the event of a channel found to have been/being used for transmitting any objectionable unauthorized content, messages, or communication inconsistent with public interest or national security or failing to comply with the directions as per Para 5.8 or Para 5.16, the permission granted shall be revoked and the company shall be disqualified to hold any such permission for a period of five years, apart from liability for punishment under other applicable laws. Further, the registration of the channel shall be revoked and the channel shall be disqualified from being considered for fresh registration for a period of five years. 6.2 Subject to the provisions contained in Para 6.1 of these guidelines, in
the event of a permission holder and/ or channel violating any of the terms and conditions of permission, or any other provisions of the guidelines, the Ministry of Information and Broadcasting shall have the right to impose the following penalties: -
6.2.1
In the event of first violation, suspension of the permission of the
company and/or registration of the channel and prohibition of broadcast up to a period of 30 days. 6.2.2 In the event of second violation, suspension of the permission of the company and/or registration of the channel and prohibition of broadcast up to a period of 90 days 6.2.3 In the event of third violation, revocation of the permission of the
company and/or registration of the channel and prohibition of broadcast up to the remaining period of permission 6.2.4 In the event of failure of the permission holder to comply with the
penalties imposed within the prescribed time, revocation of permission and /or registration and prohibition to broadcast for the remaining period of the permission and disqualification to hold any fresh permission and /or registration in future for a period of five years. 6.2.5 In the event of suspension of permission as mentioned in Para
5.8,5.16 or 6.2, the permission holder will continue to discharge its obligations under the Grant of Permission Agreement including the payment of fee. 6.2.6 In the event of revocation of permission and /or registration, the fees paid will be forfeited. 6.2.7 All the penalties mentioned above shall be imposed only after giving
written notice to the permission holder. 7. DISPUTE RESOLUTION
7.1
In the event of any question, dispute or difference arising under the
Grant of Permission Agreement or in connection thereof, except as to the matter, the decision of which is specifically provided under the Grant of Permission Agreement, the same shall be referred to the sole arbitration of the Secretary, Department of Legal Affairs or his nominee. 7.2 There will be no objection to any such appointment that the Arbitrator
is a Government servant. The award of the arbitrator shall be final and binding on the parties. In the event of such Arbitrator, to whom the matter is originally referred to, being transferred or vacating his office, or being unable to act for any reason whatsoever, Secretary, Department of Legal Affairs shall appoint another person to act as Arbitrator. 7.3 The Arbitration and Conciliation Act, 1996, the rules made there
under and any modification thereof, for the time being in force, shall be deemed to apply to the arbitration proceedings as above. The venue of arbitration shall be New Delhi or such other place as the Arbitrator may decide. The arbitration proceedings shall be conducted in English language. 7.4 Upon any and every reference as aforesaid, the assessment of costs,
interest and incidental expenses in the proceedings for the award shall be at the discretion of the Arbitrator.
8.
PROCEDURE
FOR
GRANT
OF
PERMISSION
AND
REGISTRATION OF CHANNELS 8.1 The applicant company shall apply to the Secretary, Ministry of
Information and Broadcasting in the prescribed Performa along with full details and documentation relevant for evaluating its eligibility for grant of permission to downlink TV channels in India. Each application form shall be accompanied by a demand draft of Rs. Ten Thousand towards nonrefundable processing fee. 8.2 The applicant company shall also submit full details of each channel
being/proposed to be downlinked along with all other documents as prescribed in the guidelines. 8.3 After scrutiny of the application if the applicant company is found
eligible, the same will be sent for security clearance to the Ministry of Home Affairs. In the meanwhile, the Ministry of Information and Broadcasting will evaluate the suitability of the proposed channel for downlinking into India for public viewing. 8.4 In the event of the applicant company and the proposed channel being
found suitable, the Ministry of Information and Broadcasting will register the channel and the applicant company to enter into a grant of permission agreement with the Ministry of Information and Broadcasting, Government of India. 8.5 On receipt of the signed agreement, the Ministry of Information and
Broadcasting will issue a registration certificate for the concerned channels
and grant permission to the applicant company to downlink the relevant channels in India for the prescribed period. 8.6 On receipt of the permission and upon registration of the channel, the applicant company will be entitled to approach the MSOs/Cable head end operators/DTH Operators for receiving/downlinking its channel’s signal, for further transmission/retransmission/ distribution.
FORMATION OF COMPANY
LEGAL DOCUMENTATION FOR PRIVATE LIMITED COMPANY A) Memorandum of association. B) Articles of association. C) Certificate of incorporation of company. A) Memorandum of association of OURS ENTERTAINMENT Pvt. Ltd. (Limited by shares, as per section 15 of the companies act, 1956) (1) The name of the company is OURS ENTERTAINMENT Pvt. Ltd (2) The registered office of the company is situated in the state of Gujarat. (3) The objective of the company (a) Main object: (b) Other objects: - To enter into joint sector arrangement with any person, body or corporate whether in India or abroad for the business of the company. - To trained and get trained and or pay training for the employees, both present and future, for and in connection with business of the company. - To undertaken and execute any contacts for works for the business of the company. (4) Capital Clauses: The share capital of company is Rs.39624365 divided into shares of Rs.10 each. (5) Liability Clause: The liability of the members is limited. (6) Association Clause: We, the several persons, whose names and addresses are Subscribed, are desirous of being formed to companies in Pursuance of this memorandum of association, and we
Respectively agree to take the number of shares in the capital Of the companies set opposite our respective names. NAME OF NO. OF SIGNATURE SUBSCRIBERS SHARES Gayatridevi V. Darbar 396244 Vaishali R. Jalandhara 396243 Madhuri N. Parmar 396244 Shruti G. Parmar 396243 Keta I. Patel 396244 Riti J. Ahir 396243 Kinjal M. Gohil 396244 Foram P. Katara 396243 Pinal S. Mesurani 396244 Kinjal N. Panchal 396243 Date : of 2009 Witness : Name : Signature: (B) Articles of association of OURS ENTERTAINMENT Pvt. Ltd 1. OURS ENTERTAINMENT Pvt. Ltd. Will follow the regulations Contained in TABLE ‘A’ in the first schedule of the Companies act, 1956. 2. No invitation shall be issued to subscribe for any shares in or Debentures of the companies. 3. Prohibited from making any invitation for or acceptance of deposits from persons other than its member, directory or their relatives. 4. We, the several persons, whose names are subscribed, are desirous of being formed into a company in pursuance of these article of association and we respectively agree to take number of shares in the capital of the company.
NAME OF NO. OF SIGNATURE SUBSCRIBERS SHARES Gayatridevi V. Darbar 396244 Vaishali R. Jalandhara 396243 Madhuri N. Parmar 396244 Shruti G. Parmar 396243 Keta I. Patel 396244 Riti J. Ahir 396243 Kinjal M. Gohil 396244 Foram P. Katara 396243 Pinal S. Mesurani 396244 Kinjal N. Panchal (C) Certificate of incorporation of OURS ENTERTAINMENT PRIVATE LIMITED CERTIFICATE OF INCORPORATION NO. U000GJ2004PTC09586 I, here, by certifying that OURS ENTERTAINMENT Pvt. Ltd is incorporated under the companies act ,1956 (No. 10 of 1956) and the company is a private limited. Given under my hand at Ahmedabad this first day of April,2009. SD/Name Asst. Registrar of Companies, Seal of Registrar of companies, Gujarat.
REASONS FOR SELECTING A PRIVATE COMPANY 1. No. of members:A private company can be formed with presence of only two members. 2. Allotment before minimum subscription:A private company can allot shares before the minimum is Subscribed for or paid. 3. Option to issue prospectus:A private company may allot shares without issuing a prospectus or delivering to the registrar a statement in lieu of prospectus. 4. Issue of new shares:When a public company issues new shares, after the expiry of 2 years from its formation or at any time after the expiry of one year from the date of 1st allotment of shares, whichever is earlier. A private company has first to offer these shares to the existing equity share holders on the basis of Pro-rata. There is no such provision in case of private companies. 5. Kind of shares:A private company may issue share capital of any kind and with such voting rights, as it may think fit. 6. Commencement of business:A private company can commence business immediately on incorporation. 7. Index of members:A private company need not keep index of members. 8. Statutory meeting & Statutory report:A private company need not hold statutory meeting or filed with the registrar the statutory report.
9. Demand for poll:Even one member having the right to vote and present in person or by proxy ( if not more than 7 such members are personally present) may demand for poll. If the number of members present is more than 7, two members present in person or by proxy may demand poll. 10. Managerial remuneration:The rule of overall maximum managerial remuneration doesn’t apply to a private company, which is not a subsidiary of a public company; the overall managerial remuneration must not exceed 11% of the net profit 11. Number of directors:A private company can have minimum two directors.
TECHNICAL FEASIBILITY
• What is Technical Feasibility? • Technical Facilities • Furniture And Miscellaneous Assets • Requirement of Utilities • Location Analysis • Plant Layout
WHAT IS TECHNICAL FEASIBILITY ?
Technical feasibility study of any project is generally based on the nature and the size of the project. This phase of feasibility study includes – requirement of plant, machineries and equipments, utilities, miscellaneous fixed assets, building and interior design work etc.
TECHNICAL FACILITY
• Uplinking and Playout Facility We do not have our own earth station for telecasting or programs. Hence we have outsourced uplinking and playout to Doordarshan Kendra Ahmedabad. For this facility we are paying Rs. 60,00,000 per annum. • Transponder We have hired transponder from Antrix Corporation. For this charges payable are Rs.1,44,00,000 per annum.
REQUIREMENT OF UTILITIES
• Electricity: We have electricity connection from Torrent Power. For this we have paid Rs. 4000 as deposit. • Communication: o Telephone and fax: To communicate with the production houses , sponsors and advertisers we have taken 1 telephone connections from BSNL and have paid Rs. 1000 as deposit. o Intercom system: For any organization internal communication is equally important as the external is. We will provide intercom facility to the receptionist, director, all departmental heads and to the security guard. The cost of getting in connected with the base is Rs. 10000. • Miscellaneous fixed assets:
FURNITURE & FIXTURE
Particulars Sofa set Conference Table Table Glass Wooden Table Plastic Table Chair - revolving - plastic Light board Wall Clock Notice board Suggestion box Fans AC Tube light Water Cooler Miscellaneous fixture Total Quantity 3 1 1 26 8 20 Price 10,000 10,000 1,500 4,000 500 2,200 Total 30,000 10,000 1,500 1,04,000 4,000 44,000
20 16 1 1 35 15 40 2 -
300 200 200 100 1,000 20,000 300 15,000 -
6,000 3,200 200 100 35,000 3,00,000 12,000 30,000 50,000 6,30,000
MISCELLANEOUS ASSETS
Particulars Laptop Computer TV DVD Quantity 22 4 10 2 Price 32,999 20,000 14,990 2,000 Total 7,25,978 80,000 1,49,990 4,000
Invertors
Printer Fax Machine Projector Fire Fighting Equipment Total
1
1 2 1 1
20,000
8,200 4,000 8,000 5,000
20,000
8,200 8,000 8,000 5,000 10,09,168
LOCATION ANALYSIS
Introduction: The location of the unit is very important aspect in economic analysis of any project as it plays vital role in continuing life of the organization to have future advantages. Location of the unit means a specific site in the region where the organization is to be started. For selecting the location all the pertinent factors influencing the location have to be considered and weighted out very carefully. Location of Office: Kalpana Society Behind Ganesh Plaza Navrangpura .
Ahmedabad - 380009
We have selected this location because of following reasons: • We have outsourced uplinking and playout to Doordarshan Kendra Ahmedabad. Hence our this location has proximity to uplink station and saves cost of transportation. • Commuting facilities are easily available at this place. Hence it will be easy to our employees as well as clients. • Gujarat is also an upcoming hub for film shooting.
HUMAN RESOURCE FEASIBILITY
• Organization Chart • Job Profile • Employee Welfare and retention
ORGANISATION CHART
CEO & M.D.
HR MANAGER
FINANCE MANAGER
PROGRAMMING MANAGER
MARKETING MANAGER
DISTRIBUTION MANAGER
LEGAL HEAD
IT HEAD
ACCOUNTANT
CREATIVE MANAGER
EXECUTIVE PRODUCE R
TAPE LIBRARIAN
AD SALES MANAGER
ADVERTI SING MANAGER
DISTRIBU TION EXECUTI VE
JOB DESCRIPTION & JOB SPECIFICATION
• Chief Executive Officer and Managing Director: JOB SPECIFICATION Job Title : CEO and M.D. Education Qualification : M.B.A., Ph.D. from respective field Mental & Special Ability : Good presence of mind, calm, personality, stable, alert, leadership and communication skills Deep knowledge about the broadcasting and Media Industry. Work Experience: 5-6 year experience in similar profile JOB DESCRIPTION Reports to Supervises Functions : Shareholders : All the employees of the organization :
? To handle all the important matters related to the TV channel. ? To pay intensive attention to the activities taking place in the company. ? To participate actively in formulating the plans and strategies and sanction the same. ? Evaluate the performance of the company and take necessary steps accordingly. ? To maintain harmony in the organization.
• Head of programming department: Job specification: Job title Educational Qualification Mental & Special ability Work experience Job description: Reports to : CEO Supervises to : Executive producer Functions : - acquisition of programs - Constant touch with production houses - scheduling of programs - checking and verifying contents of program - Roping in the best talent in the industry costing. - Conceptualization of programs. - Bringing innovative ideas for programs. - Audience and market research study analysis. - Supervising executive producer and creative supervisor. - Negotiating with the producers regarding budget. : Programming Head : B.J.S., M.J.S., M.B.A. (Marketing) : creative, innovative, spontaneous : experience of 4 to 5 years in similar profile preferred
• Creative Supervisor Job Specification: Job Title : Creative Supervisor Educational Qualification : M.B.A. with Marketing Mental & Special ability : Creative, should have knowledge of Media Industry Should be Polite, Co-operative, Good Presence of mind, Dynamic. Work experience: 2-3 years in respective field. Job Description: Reports to : Programming head. Supervises to : Production houses. Functions : - Supervising the creative aspects of show as casting, set designing, costumes etc. - Constant touch with production house. - Giving suggestion to production house and programming head. • Executive Producer Job Specification: Job title : Executive Producer. Educational Qualification : Diploma in Dramatics Mental & Special ability : Alert, Smart. Work experience: 2-3 years in similar profile preferred.
Job Description: Reports to Supervises Functions: : Programming head. : Producers - Constant touch with production house. - Selection of the produces for production of programs. - Ensuring that the tapes reach on time from production house. - Estimation of the budget and presentation to finance requirement. - Ensure that weekly television program details are provided to newspaper and magazine. • Ad sales Manager Job Specification: Job title Education Qualification : Ad sales Manager.
: MBA (Marketing), Diploma in Advertising. Mental & Special ability : Pleasant Personality, Calm, Co-operative, Sharp, Good presence of mind, Good Convincing power. Work experience: 2-3 years of experience in respective field. Job Description: Reports to : Marketing head. Supervises : Functions : - Prepare proposals to attract the advertisers. - Negotiation with the Ad agencies.
- Fixation of Ad rates and classification of slots. - Bringing the sponsor for the programs. - Finalizing the Ads and placing of the Ads. - Building client confident. • Advertising Manager Job Specification: Job title : Advertising Manager. Education Qualification : M.B.A. (Advertising) Mental & Special ability : Creative, Pleasant Personality, Calm, Co-operative, Sharp, Good presence of Mind, Good convincing power. Work experience: 2 to 4 years of experience in respective Department preferred. Job description: Reports to Supervises Functions : Marketing head. : : - Working for the brand in market. - Allocating the budget to different media to Maximize reach. - Audience and market research study and analysis. - Evaluate the campaign spent and see which format of media worked. - Remain in touch with Ad agencies. - Negotiation with the Ad agencies.
• Marketing Manager Job Specification:
Job title : Marketing Manager. Education Qualification : MBA (Marketing). Mental & Special ability : Creative, Good communication skills, Dynamic. Work experience : 4 to 5 years of experience in respective Field is preferred. Job Description: Reports to Supervises : CEO : Ad sales manager, Advertising Manager. Functions : - Fixing up of budget for advertising. - Audience and market research study and analysis. - Supervising Ad sales manager and Advertising manager. - Finalizing allocation of advertising budget to different media - Working for brand positioning. • Legal Advisor Job Specification: Job title Education Qualification Mental & Special ability Work experience Job Description: Reports to Supervises : CEO : : Legal Advisor. : L.L.M. : Sharp, Alert : 2-3 years preferred.
Functions
: - See that the program content adheres to advertising and program code given by I and B ministry. - See that the necessary legal procedure are complied with. - Co-operate with respective legal authorities. - Ensure that the necessary monitoring facilities are provided to the authorities by the up-link service provider.
• Finance Manager: JOB SPECIFICATION Job Title : Finance Manager Education : M.B.A. (Finance) Mental & Special Ability : Should be well versed with numbers, should be skilled in the analysis of data Special Ability : Should be skilled in the application of various tools of financial management Work Experience : preferably one year of experience in similar profile. JOB DESCRIPTION Reports to Supervises Functions : Director : Accountant : • To determine optimal capital structure and work towards its attainment. • To handle all the financial affairs of the TV channel • Take care of the finance during events
• To negotiate marketing budget and the budget of other departments. • To analyze financial performance of the business by analyzing financial statements.
• Accountant:
JOB SPECIFICATION Job Title : Accountant Education : M. Com. Mental & Special Ability : Good with numbers, Familiarity with various accounting standards and concepts Special Ability : Good command over various accounting softwares and programmes like Tally Work Experience : Not required
JOB DESCRIPTION Reports to Supervises Functions : Finance Manager, Director : :
• To record financial transactions daily • To remain in touch with finance manager • To prepare financial statements like profit and loss and balance sheets and arrive at various ratios.
• H.R. Manager:
JOB SPECIFICATION Job Title : Personnel Manager Education : M.B.A. (H.R.) Mental & Special Ability : good communication skills, negotiating skills Special Ability :interpersonal skills, counselling skills, emotional stability Work Experience : preferably one year experience in similar profile JOB DESCRIPTION Reports to Supervises Functions : Director : trainees : • Manpower Planning • Recruitment • Selection
• Training • Performance Appraisal • Handling Grievances
• Distribution Head:
JOB SPECIFICATION Job Title
istribution Head Education :Graduate in any discipline Mental & Special Ability :should be alert and stable Special Ability :good motivational skills and negotiating skills Work Experience : 2-3 years experience in similar profile JOB DESCRIPTION Reports to Supervises Functions :CEO istribution Executives :
? Select MSO networks and DTH service providers for distribution of TV channel.
? Negotiating with the distribution intermediaries regarding the subscription revenue sharing. ? Signing of formal agreements with DTH operators , MSOs, LCOs , for distribution of channel. ? Ensure that decoders are available to the distributors. ? Ensure that intermediaries in distribution make correct reporting regarding the no of subscribers. ? Check that the agreed MSOs, LCOs or DTH service providers are registered.
• Distribution Executive: JOB SPECIFICATION Job Titleistribution Head Education :Graduate in any discipline Mental & Special Ability :should be alert and stable Special Ability :good motivational skills and negotiating skills Work Experience : 2-3 years experience in similar profile JOB DESCRIPTION Reports to Supervises Functions :CEO and Distribution Head : :
? Collection of subscription charges from distribution intermediaries.
? Ensuring that customers are receiving the channel. ? Ensure that the intermediaries provide uninterrupted service to the customers. ? Make the decoders available to the intermediaries. ? Check that under reporting of the number of subscribers do not take place.
• I.T. Head : JOB SPECIFICATION Job Title :I.T. Head Education :B.Sc.(I.T.) or B.E.(I.T.) Mental & Special Ability :should be alert and stable Special Ability : Work Experience : not required JOB DESCRIPTION Reports to Supervises Functions :CEO : :
• Write the updates of programs after getting details of content.
• Update and maintain the website • Forward the details of the feedback and suggestion forum to the relevant department. • Tape Librarian Job specification: Job title : Tape Librarian. Educational Qualification : Diploma in library-science. Mental & Special ability : Good memory status, Alert, Co-operative. Work experience : Not required. Job Description: Reports to Supervises Functions : Programming head. : : - Filing and storing of all program tape, commercial tape from advertises, Programming department. - Receiving the transmission schedule to the programming department. - Issue of tapes on request of producers. - maintaining all the records properly. - Ensuring that the necessary tapes reach on time for up-linking as per the transmission schedule.
• Receptionist: JOB SPECIFICATION Job Title Education Mental & Special Ability : Receptionist : Graduate in any discipline :Good presence of mind and calm personality, good command over languages, good communication skill Work Experience : Not required JOB DESCRIPTION Reports to Supervises Functions : All concerned persons : Peons, Sweepers : • To adjust appointment of various authorities • To conduct the visits and appointments • To receive the phone calls and transfer it to concerned Departments • Peon: JOB SPECIFICATION Job Title Education Mental Ability : Peon : S.S.C. : Mentally stable and grasp the things quickly
Special Ability :well behaved and should be honest Work Experience :Not required JOB DESCRIPTION Reports to Supervises Functions • • • • :Receptionist and all concerned persons :None : To follow the orders of the seniors. To keep the office and premises clean To do all the miscellaneous works. To be punctual and particular about the work.
MANPOWER DETAILS
Designation
CEO Program Head Executive Producer Creative Supervisor Marketing Head Ad sales Manager Advertiser Manager Finance Manager Accountant HR Manager IT Legal Advisor Tape Librarian Distribution Head Distribution Executive Peon Receptionist Security Guard
No. of employees
1 1 5 5 1 10 2 1 2 1 1 1 1 1 4 5 1 1
EMPLOYEE WELFARE AND RETENTION
Employee welfare and Retention is very crucial affair for any organization. It is very important to play close attention towards the problems of the employees working in the organization. As ours is a service providing organization employees are valuable assets of our organization. Following policies will be framed in our organization: • Employee of the year award • Casual Leave – 7 days per annum • Sick Leave – 7 days per annum
• • • •
Bonus – 1 month salary Birthday celebration Gripe Box Special Leave - Special leaves will be given to employees. 3 leaves will be given which have to be devoted for social service which will give satisfaction to employees.
MARKETING FEASIBILITY
.
• 7 P’s of Marketing • Market Research • Findings and Conclusions
MARKETING FEASIBILITY
According to Philip Kotler ‘Marketing is meeting needs profitably.’ We need to fulfil the needs of the target market by our product and also earn profit.
7 P’s OF MARKETING
PRICE
PROCESS
PLACE
7’ps
PHYSICAL EVIDENCE
Of Marketing
PROMOTION
PEOPLE
PRODUCT
With increasing alternatives of entertainment being available to the people and increasing competition in the general entertainment channel market we
need to develop a marketing strategy that differentiates us from competitors. This marketing strategy includes different elements. The marketing mix is a set of marketing tools that the firm uses it to pursue its marketing objectives in the target market. Our feasibility report deals with service. Service marketing mix consists of following 7 P’s of marketing. I. II. III. IV. V. VI. VII. Product Price Place Promotion People Physical Evidence Process
The so-called marketing mix is a framework that acts as a guideline for marketers to implement a marketing concept. It consists of a set of major decision areas that a company needs to manage in order to satisfy consumer’s needs.
1. Product: Product:
Product means a good commodity, which carries a satisfaction with itself that a consumer is willing to accept. A good product offers a bundle of tangible and intangible attribute to satisfy consumers. However in service there is no or only a little tangible element because if which they are considered as benefits, which are offered to the target market. Name : OURS Logo :
Tagline : “Happy Hours with Ours.” Here we classify our product as Entertainment TV Channel.
Features : ? 24*7 programmes ? Healthy entertainment programmes
? Innovative programmes ? Comparatively lesser ad-breaks Products Levels : There are five different product levels, each of which represents a customer’s value hierarchy. These product levels can be understood as follows: Core Benefit: Core benefit is a fundamental service or benefits that a customer is really buying. The core benefit of an Entertainment Channel is to provide entertainment. Basic Product: Basic product is one of the alternatives to satisfy the core needs. It includes the basic as well as functional attributes of a service. The Here the basic product is a set of entertainment programmes like drama, reality shows, comedy programs etc. Expected Product:Expected product is a set of attributes and conditions that buyers normally expect when they purchase a product or service. Here healthy entertainment programmes and uninterrupted telecast is the expected product. Augmented Product: Augmented product consists of those services that meet the customers’ desires beyond expectations. Here organizing contests Potential Product: It consist of all possible augmentations that a product or service might undergo in future.
2.Price
The second P of marketing mix is Price. Price means amount of money charged for a particular product or services. Price has operated as major influencing factor of buyer’s choice even. This behaviour prevails not only in underdeveloped or developing countries but also in developed countries. We have decided our channel subscription charges as follows: For both non CAS and CAS notified areas and DTH – Rs. 5 per month We are following the going rate pricing method because we have set our price by taking into consideration competitors price. But we have fixed the price less than that of competitors as we are new entrant. Our TV channel will be Free To Air for first six months. Our Ad Rates are as follows:
AD RATE
Time Slot 8 pm to 10 pm 10 pm to 11 pm 11 pm to 12 am 12 am to 6 am 6 am to 11 am 11 am to 1 pm 1 pm to 2 pm 2 pm to 5 pm 5 pm to 8 pm Rate(in Rs.) per 10 Second 20,000 18,000 10,000 100 500 800 8,000 2,000 2,000
In one hour there will be 12 minutes of non programming material out of which 6 minutes will be devoted to advertisement and remaining will be devoted to promos of channel programs. Rates for space selling - Rs.20000 per hour.
3. Place Place means the company activities that make the different products or services available to the target customers. Location of Office: Kalpana Society Behind Ganesh Plaza
Navrangpura . We have selected this site because of following reasons: 1.We have outsourced uplinking and playout to Doordarshan Kendra Ahmedabad. Hence our this location has proximity to uplink station and saves cost of transportation. 2.Commuting facilities are easily available at this place. Hence it will be easy to our employees as well as clients. 3.Gujarat is also an upcoming hub for film shooting. Our regional offices are located at Delhi, Kolkatta, Chennai, Mumbai, Hydrabad.
Distribution Channel: It refers to how an organization will distribute the product or service offering to the end users. Efficient and Effective distribution is important if the organization wants to meet its marketing objectives. TV channel
M.S.O. (Multi System Operators) L.C.O.(Local Cable Operators)
TV channel L.C.O.(Local Cable Operators)
TV channel D.T.H.(Direct To Home)
4.People It is rightly said, “Employees represent the organization to the customers and clients and a service company can be only as good as its people.’’ We need to train our employees how to face customers and clients otherwise the entire marketing effort will go futile. • Factors Motivating Employees
1. 2. 3. 4. 5. 6.
Ambience of the place Pay Package Allowances Leaves Work Culture Company Policies
Our company has following policies for welfare of employees: 1. Awards and rewards : Employee of the year award 2. Special leaves: Special leaves will be given to employees. 3 leaves will be given which have to be devoted for social service which will give satisfaction to employees. 3. Bonus : One month salary is given as bonus. 5. Physical Evidence : Physical Evidence means the environment that is delivered and any tangible goods that facilitate the performance and communication of service. Based on the perception on the tangible clues the customer makes the purchase decision .Hence physical evidence like I-cards for employees, diaries, note pads and calendars for clients as well as employees are used bus to tangiblize our service. Apart from this we have designed of wall, colour of wall, floor also form part of physical evidence.
6.Process :
Process means the procedures, mechanism, and flow of activities by which a service is acquired. Process decisions radically affect how a service is delivered to customers Relevance of Process Management o To avoid error o To increase the quality of service o To increase the standardisation
Telecasting Process : Telecasting- Broadcasting visual images of stationary or moving objects are referred to as telecasting. Telecasting is divided into two main areas of activity in the modern television and broadcasting world: Playout Automation and Uplinking. Playout Automation process involves some essential equipment and software to work with the equipment. Uplinking Process : The process of converting the signals to Radio Frequency signal and sending it to satellite is referred to as uplinking. A critical function of channel, is that it require high quality redundant equipments to keep running 24 hours. These equipments include encoders, multiplexers, modulators, upconverters, high performance amplifiers and antennas. Also the antennas require a tracking system to align the dish accurately for uplinking to the satellite We are currently outsourcing the uplinking facilities from Doordarshan Kendra Ahmedabad for which we have entered into “Uplinking Service Agreement” on February 2, 2009 for a period of six years from the date of actual launch of the channel. The services to be provided / supported by them is uplinking of our TV Channel and Playout automation service.
We have to hire space capacity on satellite which receives signals uplinked by teleport and distribute the same to various cable operators. We have entered into an agreement with Antrix Corporation Limited, a Government of India company under Department of Space for transponder hiring Downlinking Process : Downlinking is a process of receiving the radio frequency signal by using a satellite dish, decoding it and converting it to an audio video signal. The cable operator installs the dish that points to the satellite to which the television channel is uplinking. The satellite dish receives the signal and provides it to a decoder that can decode the MPEG2 encrypted or free to air signal and convert it to an audio video signal. This signal is further distributed over the cable operators’ network. ourselves from other broadcasters, increase our marketing, distribution & promotional cost, change our programming mix and review our employee retention policies. Distribution Platform : The Government has recently, liberalized regulations for implementation of conditional access systems, in a phased manner, and has allowed Direct-tohome broadcasting, which may bring about changes in the broadcasting industry. We have entered into agreement for distribution with all major MSOs like siticable,GTPL , Incable and all major DTH service providers.
Source of programs : We are dependent on out –house production for program content. Based on our idea of any program the producers will produce the program for us. Also if any producer has a program he/she may present their content before the programming department official and decision to accept or reject the proposal will be then made by them.
Program Schedule : Program Description ; Some of our flagship programs are as follows: Swapnavasavdatta This program is based on Sankrit classic Swapnav?savadatta by the famous Sankrit dramatist Bh?sa. The story involves the King of Vatsa Udayana eloping with Vasavdatta and marrying her in the beginning, but as story progresses, things take turn and Udayana is forced to marry the daughter of a rival and powerful king.The king is not keen, but the loyal minister Yougandharayana stages a plot for the sake of the kingdom and the king, and Vasavadatta is made to separate from Udayana. The drama has a beautiful climax with Udayana getting to know the plot and uniting with Vasavadatta after all the needs of the state are taken care of. Kids Ho It is a program targeted at children. It will consist of different segments like animated stories,kids quiz,fun facts etc. Prarthna It is a early morning program which will consist of different segments like ‘Suvichaar’, ‘Sant Vaani’ , and prayer songs.
ABC of life It is a kind of edutainment program.It will be made up of four segments like a. Best from waste- In this segment viewers will be taught how to utilise some waste or scrap material to make creative and useful things out of it.
b. Sanskruti-In this segment we will show cultural elements of different parts of india. It may include festival celebrations or rituals etc. c. Aushadh-It will focus on giving information regarding some homemade medicines or treatments. d. U Yogi-It will include Yoga guidance for viewers. Kuchh To Kaho It is a edutainment program. It will provide the viewers the oppurtunity to ‘learn with fun’ different languages. Kuchh Khaao Kuchh Pakaao It is a cookery show which will serve the viewers unexplored recepies from different parts of India. Bachpan It is a daily soap which will focus on the life of two kids.One whose childhood is lost due to child labour and the other who is suffering from child labour in disguise i.e . pressure of studies from parents and teachers. Yaar Aana It is a week end serial which focuses on college life and friendship.
Hello Shyam It is a daily soap. It will focus on the life of a young boy who is handsome, charming and dynamic ,with a sharp mind and good interpersonal skills. He is a good friend and loving son . His personality is portrayed as that of Lord Krishna. His life journey is also comparable to Lord Krishna. Today’s Trend
This is a lifestyle show which will present the viewers the current trends of fashion, interiors, automobiles, electronics etc. Rydhamm… It will be a innovative antakshari program.
7.Promotion Promotion is a term taken from Latin word ‘promovere’ that means moving from one to one and to another In marketing promotion means all those tools through which marketer communicates its products to the consumer. It also includes different means that he uses to increase the service of its product.
Advertisement : Advertisement can be defined as paid form of non-personal communication of ideas , goods or services by an identified sponsor. Steps in advertising : 1. Mission It consists marketing objective. Our objective is: • To create awareness regarding launch of new channel • To create awareness regarding the new programmes that are going to be on air. • To attract towards the program so as to maintain and increase the viewership. 2. Money
Although advertising is treated as current expense, part of it is really an investment that builds up on tangible assets called brand equity. There are two main factors that influence the advertising budget: 1. Position of organization in the market: As ours is a new organization we have to spend a large amount on advertising to create awareness and to gain the viewership. 2. Market share As we have to build market share we have to spend large amounts on advertisement. 3. Message: The messages’ impact depend not only on what is said, but also often more important on how it is said.So the message generation plays an important role in organization’s image or reputation.
Following types of Hoardings and Ads will be displayed
4. Media: Advertising media is a means through which advertisers communicate their message to target people with a view to influence them in terms of advertising objectives. Our advertising mix will be as follows:
PRELIMINARY AD SCHEDULE News papers : Frequency 8 Hoardings: City 15 Radio : Time slot 8AM to 10AM 11AM to 6PM Total 1128000 1296000 2424000 Hoardings per city 5 Hoarding cost per month 40000 Frequency in month 1 Total 3000000 No. of news papers 4 Rate per cm. sq. 1200 Size in sq. cm. 400 Total 15360000
T.V. : Time slot 8PM to 10PM 1PM to 4PM Rate per 20 sec. 200000 25000 Frequency per month 24 168 Total 4800000 4200000 9000000
Leaflets : Quantity 500000 Brochures : Brochures AD EXPENDITURE PER ANNUM YEAR 1 News papers Frequency 50000 Rate per 5000 200 Total 20000
No. of news papers
Rate per cm. sq.
Size in sq. cm.
Total
Website as mean of communication
An organization’s website is one of the potent tools of communication a website can integrate various communication tools at a time. Our website is: www.ourstv.org Website features: • Site map • Feedback forum on program, character etc. • Rating of programs • Updates of programs and details of upcoming programs. • Suggestion forum for new programs and existing programs Word of mouth Advertisement : Word of mouth Advertisement involves direct communication about service . It is communication between people who know each other in someway. For our service word of mouth advertising plays a very important role.
We are incurring handsome amount on ads because we are a new TV channel and there is too much competition so we feel advertising is necessary to communicate about our programs to viewers. 5. Measurement: With the use of media and message we would reach all the target viewers.We can measure this with the help of T.R.P.(Television Rating Points) of our programs as well as G.R.P.(Gross Rating Points).
MARKET RESEARCH
Market Research can be defined as the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company. Market research includes the following steps.
Define the problem and research objectives: Market research is undertaken to achieve particular objectives. Our main objective is to find the scope and feasibility of Entertainment TV Channel. In this objective, the following sub-objectives have been met. • to get information regarding the preference of people for various sources of entertainment. • to get information regarding the preference of people regarding different types of channels like entertainment, news etc.. • to know peoples’ TV habits. • To find out what could be the strategy for timing of shows. • to find out the process of establishing TV channel in Ahmedabad. Develop the research Plan: The next step of a marketing research is to develop a systematic plan regarding decision factors like sources of data, data collection method, sampling plans and contact method. 1. Sources of data: The data sources can be primary and secondary data. Primary data: Primary data are the raw and structure of variables that have been specifically collected for a current information research problem. Our research for primary source consists of: • People: - People generally constitute the source of information in respect of most researchers. We have surveyed 100 people of various places of Gujarat.
Secondary data: - The information collected from external source is known as secondary data. There are innumerable sources from which we have collected secondary data like newspapers, annual reports of various companies like Balaji Telefilms, NDTV, etc..,and websites of associations like ibef and books
2. Research approaches:We used the “survey approach” through questions and “behavioural data” by analyzing consumer behaviour and through asking them. 3. Research instrument:The major research instrument that we used was questionnaires of consumers. 4. Sampling Plan: The marketing researcher must design sampling plan, which consist of three components • Sampling Unit: This represents the target population for the survey. For this research, we approach people of different areas of Ahmedabad city. In this research we approach all categories of persons according to gender, age, and occupation, which are the most important factors determining the preference. • Sampling Size: The survey covers 100 respondents spread across Gujarat. The sample is representative of urban areas. • Sampling Procedure:
We have done survey through convenience sampling i.e. selecting the most accessible population members. 5. Contact Method: There are various ways like mail, telephone and personal interview to contact the people. We used personal interview and telephone to contact people. Collection of information: In collecting the information we faced some problems like • The response of some people was biased and unreliable. • We observed that some organizations were not ready to reveal any information. Though collecting the information is mostly prone to error, we have tried our best to cover all possible aspect so that our research can give us correct idea of current scenario. Analysis of Information: The data collected in the previous stages have to be arranged properly and precisely. They have to be carefully processed and edited to make a comparative study. For analysis we have distributed the various questions in tabular form and we have presented it in different charts.
FINDINGS AND CONCLUSION
TOTAL PEOPLE AS PER GENDER
MALE 26
FEMALE TOTAL
74 100
GENDER
26% Male Female 74%
As per the survey, out of 100 respondents 26 respondents are male, while 74 respondents are female.
TOTAL PEOPLE AS PER AGE GROUP
BELOW 15 15-20 4 44 20-30 30 30-40 12 ABOVE 40 10 TOTAL 100
AGE GROUP
10%4% 12% 44% 30% Below15 15-20 20-30 30-40 Above 40
In our survey of entertainment TV channel, most of the respondents are youngsters between the age of 15-20 and the second age group of respondents is 20-30.
TOTAL PEOPLE AS PER THE OCCUPATION
STUDENT BUSINESS- SERVICE HOUSE- PROFESSION TOTAL MAN WIVES 49 6 23 15 7 100
OCCUPATION 60 50 40 30 20 10 0 49
23 15 6 7
Student Business-man Service Profession House-wises
%
1 OCCUPATION
As per the survey, most of the respondents are students i.e. 49, 23 respondents belong to service followed by the house wives, professionals and businessman.
FAMILY INCOME ( per month)
Below 10,000 4 10,00015,000 23 15,00025,000 39 25,00035,000 22 Above 35,000 12 Total 100
income 50 40 % 30 20 10 0 1 income Below 10,000 10,000-15,000 15,000-25,000 25,000-35,000 Above 35,000
As per the survey, most of the respondents are between the income group of 15,000-25,000 and 10,000-15,000.
DO YOU HAVE T.V.?
YES NO TOTAL 97 3 100
3% Yes No 97%
As per the survey, out of 100 respondents 97 respondents have television, while 3 respondents do not have television.
DO YOU HAVE ACCESS TO T.V. CHANNELS?
YES NO TOTAL 85 15 100
ACCESS TO T.V. CHANNEL
15% YES NO 85%
According to survey results, out of 100 respondents, 85 respondents have access to TV. Channel, while 15 respondents do not have access to TV. Channel.
SOURCE OF T.V.CHANNEL
Cable 70 D.T.H. 15 Total 85
Source of T.V. channel
Cable Dth
Here, we can see that, out of 85 respondents who have access to T.V. channel, 70 respondents have it through cable and 15 have access to T.V channel through DTH.
WILL YOU BUY DTH SERVICE IN FUTURE?
Yes 51 No 34 Total 85
Buy DTH in future?
40% 60%
Yes No
As per the survey, out of 85 respondents who have access to T.V. channel , 51 respondents are agree to buy DTH service in future, while 34 respondents refused to buy it.
WHAT KIND OF CHANNELS DO YOU WATCH?
Entertainment Channel Religious Channel News Channel Kids Channel Rank 1 8 2 7
Sports Channel Music Channel Infotainment Channel Movie Channel
5 4 6 3
8 7 6 5 4 3 2 1
Entertainment Channel Religious Channel News Channel Kids Channel Sports Channel Music Channel 1
Rank
Infotainment Channel Movie Channel
According to the results of the survey, the channel usually watched by the respondents are entertainment channel, second preference was given to news channel by the respondents followed by the movies channel, music channel and so on.
IN ENTERTAINMENT CHANNEL, WHAT KIND OF PROGRAM DO YOU WATCH?
Family drama Reality show Comedy Program Rank 7 1 8
Movie Spiritual Program Music base Program Mythological drama Songs and trailers of movies Kids show
4 6 3 5 2 9
9 8 7 6 5 4 3 2 1
Family drama Reality show Comedy Program Movie Spiritual Program Music base Program
Rank
Mythological drama Songs and trailers of movies
In the entertainment channel, mostly people watch Reality show, the second preference given by the respondents to Songs and trailers of movies. third, to music base program and so on.
IN WHICH TIME SLOT, DO YOU WATCH ENTERTAINMENT CHANNEL?
7:00 to 9:00 a.m. 9:00 to 12:00 a.m. 12:00 to 3:00 p.m. 3:00 to 7:00 p.m. 11 9 14 8
7:00 to 10:00 p.m. 10:00 to 12:00 p.m. Total
58 31 131
Timing
7:00 to 9:00 a.m. 9:00 to 12:00 a.m. 24% 8% 7% 11% 6% 44% 12:00 to 3:00 p.m. 3:00 to 7:00 p.m. 7:00 to 10:00 p.m. 10:00 to 12:00 p.m.
As per our survey, in prime time i.e. in the time slot of 7:00 to 10:00 p.m., mostly entertainment channel is being watched. The 2 nd rank is given to 10:00 to 12:00 p.m. .In the time slot of 3:00 to 7:00 p.m., according to our survey, the entertainment channel is not watched.
FINANCIAL FEASIBILITY
• Cost of Project • Means of Finance • Assumptions of Financial Statements • Working Capital Statement • Income Expenditure Account • Balance Sheet • Cash flow statement • Ratios • Evaluation of Project
COST OF PROJECT
Sr No. 1 2 3 4 5. 6. Total Particulars Land & Building Furniture & fixture Miscellaneous assets Preliminary & preOperating Expenses Working Capital Requirement Contingency Amount in Rs. 45,00,000 6,30,000 10,09,168 3,09,09,500 1,02,67,667 3,08,030 3,70,74,168
FURNITURE & FIXTURE
Particulars Sofa set Conference Table Table Glass Wooden Table Plastic Table Chair - revolving - plastic Light board Wall Clock Notice board Suggestion box Fans AC Tube light Water Cooler Miscellaneous fixture Total
Quantity 3 1 1 26 8 20
Price 10,000 10,000 1,500 4,000 500 2,200
Total 30,000 10,000 1,500 1,04,000 4,000 44,000
20 16 1 1 35 15 40 2 -
300 200 200 100 1,000 20,000 300 15,000 -
6,000 3,200 200 100 35,000 3,00,000 12,000 30,000 50,000 6,30,000
MISCELLANEOUS ASSETS
Particulars Laptop Computer TV DVD Quantity 22 4 10 2 Price 32,999 20,000 14,990 2,000 Total 7,25,978 80,000 1,49,990 4,000
Invertors
Printer Fax Machine Projector Fire Fighting Equipment Total
1
1 2 1 1
20,000
8,200 4,000 8,000 5,000
20,000
8,200 8,000 8,000 5,000 10,09,168
PRELIMINARY & PRE-OPERATING EXPENSES
Particulars License fees Trademark Registration Advertisement Expenses Website Designing Miscellaneous Expenses Legal charges Intercom Telephone Telephone Deposit Electricity Charges Total Amount In Rs. 10,20,000 2,500 2,98,04,000 30,000 24,500 3,000 10,000 10,500 1,000 4,000 3,09,09,500
MEANS OF FINANCE
SR. NO. 1 2 MEANS OF FINANCE PARTICULARS Equity Share Capital Long Term Loan From Dena Bank AMOUNT(Rs.) 3,96,24,365 80,00,000
Total Cost Of Project
4,76,24,365
ASSUMPTIONS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Debtors are allowed 1 month credit. Creditors give 1 month credit. Creditors for expenses (Telephone & Electricity) bills are on 2 months credit. Employees will be given 10% increment from 3rd year onwards. Loan is easily available from Dena Bank @ 14% interest rate per annum. 70% of subscription revenue is shared by MSO (Multi-system Operator) and cable operator. Electricity charges are taken at Rs. 3.60 per unit. Numbers of subscribers are assumed to increase @ 10%. Working days are assumed to be 365. Cost of acquisition of programs and movies are assumed to increase @ 5 %. .
STATEMENT SHOWING WORKING CAPITAL REQUIREMENT
(A)CURRENT ASSETS
Debtors
Ad sales 1200996000 X 1/12 X 1 subscription revenue 54000000 X 1/12 X 1 space selling 14600000 X 1/12 X 1 100083000 4500000 1216667 4000000 105799667 4000000 Rs.
Cash
(A)
(B)
109799667
CURRENT LIABILITIES
99500000
Creditors 1194000000 X 1/12 X 1 Lag in payment of expenditure telephone bill 120000 X 1/12 X 2 electricity bill 72000 X 1/12 X 2
20000 12000
32000
(B) (A) - (B) CONTINGENCY @ 3%
99532000 10267667 308030
COMPUTATION OF DEPRICIATION
Cost Of Building (depriciation @ 10%) Particular Opening Balance Depriciation Closing Balance Year 1 4500000 450000 4050000 Year 2 4050000 405000 3645000 Year 3 3645000 364500 3280500 Year 4 3280500 328050 2952450 Year 5 2952450 295245 2657205
Cost Of Computer and Laptop=805978(Depriciation@60%) Particular Year 1 Year 2 Year 3 Year 4 Year 5 Opening Balance 805978 322391.2 128956.5 51582.59 20633.04 Depriciation 483586.8 193434.7 77373.89 30949.56 12379.82 Closing Balance 322391.2 128956.5 51582.59 20633.04 8253.215 Cost Of TV = 149900 (Depriciation @ 60%)
Particular Opening Balance Depriciation Closing Balance
Year 1 149900 89940 59960
Year 2 59960 35976 23984
Year 3 23984 14390.4 9593.6
Year 4 9593.6 5756.16 3837.44
Year 5 3837.44 2302.464 1534.976
Cost Of Projector = 8000 (Depriciation @ 60%) Particular Opening Balance Depriciation Closing Balance Year 1 8000 4800 3200 Year 2 3200 1920 1280 Year 3 1280 768 512 Year 4 512 307.2 204.8 Year 5 204.8 122.88 81.92
Cost Of Furniture & Fixture = 630000 (Depriciation @ 15%) Particular Opening Balance Depriciation Closing Balance Year 1 630000 94500 535500 Year 2 535500 80325 455175 Year 3 455175 68276.25 386898.8 Year 4 386898.8 58034.81 328863.9 Year 5 328863.9 49329.59 279534.3
Cost Of DVD = 4000 (Depriciation @ 100%) Particular Opening Balance Depriciation Closing Balance Year 1 4000 4000 0 Year 2 0 0 0 Year 3 0 0 0 Year 4 0 0 0 Year 5 0 0 0
SCHEDULE OF REPAYMENT OF LOAN
Amount in Rs. Interest @ Sr.No. 1 2 3 4 Opening balance 8000000 6789745 5410054 3837207 Principle amount 1210255 1379691 1572847 1793046 14% 1120000 950564 757408 537209 Installment 2330255 2330255 2330255 2330255 Balance 6789745 5410054 3837207 2044161
5 TOTAL
2044161
2044161 8000000
286094 3651275
2330255 11651275
FORMULAS OF RATIO
1 2 3 4 NET PROFIT RATIO = P.A.T. x 100 Total sales CASH PROFIT RATIO = P.A.T. + Non Cash Expenses x 100 Total Sales + Other Income CURRENT RATIO = Current Assets Current Liabilities FIXED ASSETS TURNOVER RATIO = Total Sales Fixed Assets TOTAL TURNOVER RATIO = Total Sales Total Assets RETURN ON CAPITAL EMPLOYED = P.B.I.T. x 100 Capital Employed INTEREST COVERAGE RATIO = P.A.T. + Interest + Depreciation Interest on Debt DEBT EQUITY RATIO = Long Term Debt Equity Shareholders Fund DEBTORS RATIO = Debtors x 360 Total Credit Sales
5
6
7
8 9
10 CREDITORS RATIO = Creditors x 360 Total Credit Purchase 11 RETURN ON NET WORTH RATIO = P.A.T. Net Worth
12 PROPRIETOR’S RATIO = Proprietor’s Fund Tangibles Assets 13 EARNING PER SHARE = P.A.T. No. of Equity Shares 14 DEBT SERVICE COVERAGE RATIO = P.A.T. + Interest +Depreciation Interest + Repayment of Installment
RATIO ANALYSIS
PARTICULARS NET PROFIT RATIO (A) Profit After Tax (B) Sales NET PROFIT RATIO CASH PROFIT RATIO (A) Cash Profit (B) Total Profit CASH PROFIT RATIO CURRENT RATIO (A) Current Assets (B) Current Liabilities CURRENT RATIO FIXED ASSETS TURNOVER RATIO (A) Sales (B) Fixed Assets FIXED ASSETS TURNOVER RATIO TOTAL ASSETS TURNOVER RATIO (A) Sales (B) Total Assets TOTAL ASSETS TURNOVER RATIO RETURN ON CAPITAL EMPLOYED (A) PBIT (B) Total Capital Employed RETURN ON CAPITAL EMPLOYED INTEREST COVERAGE RATIO (A) PAT + Interest + Depreciation (B) Interest on Debt INTEREST COVERAGE RATIO DEBT-EQUITY RATIO (A) Debt (B) Equity DEBT-EQUITY RATIO DEBTORS RATIO (A) Debtors (B) Credit Sales DEBTORS RATIO
2009-10
2010-11
2011-12
2012-13
2013-14
-2139212 1269596000 -0.16849549
33185237 1395175800 2.378570285
92723212 1560220896 5.942954119
163202846 1744833804 9.353489463
249551355 1951338901 12.78872444
5169515 1435596000 0.360095389
40083793 1561175800 2.56753871
99430420 1734520896 5.732442903
169807844 1927848804 8.808151534
256092635 2143504651 11.94737949
114066957 99532000 1.146033004
159885271 104507000 1.529900112
212894047 109730750 1.940149384
265745698 115215688 2.306506194
284425637 120974872 2.351113354
1269596000 5012341 253.2940197
1395175800 4295685 324.7854068
1560220896 3770377 413.8103155
1744833804 3347279 521.2693068
1951338901 2987899 653.0806098
1269596000 119079298 10.66176927
1395175800 164180956 8.49779313
1560220896 216664424 7.201094057
1744833804 269092977 6.484129848
1951338901 287413536 6.789307588
-1019212 19547298 5.214081251
51223609 59673956 85.83913726
129338530 123060674 105.1014315
227964605 178877289 127.441894
350599871 261438664 134.1040631
107615 1120000 0.096084821
34852457 950564 36.66502939
82118618 757408 108.4205844
144350970 537209 268.7054201
222459773 286094 777.5758073
6789745 12757553 0.53221374
5410054 54263902 0.099698949
3837207 108096467 0.035497987
2044161 176833128 0.011559831
0 261438664 0
105799667 1269596000 30.00000009
116264650 1395175800 30
130018408 1560220896 30
145402817 1744833804 30
162611575 1951338901 29.99999998
TRADING & PROFIT AND LOSS ACCOUNT
Particulars
2009-10 Amt in Rs.
2010-11 Amt in Rs.
2011-12 Amt in Rs.
2012-13 Amt in R
Income from sales Ad sales subscription revenue space selling sponsership fees Other income Interest received on Investment 1,200,996,000 54,000,000 14,600,000 166,000,000 1,435,596,000 1261045800 118800000 15330000 166000000 1561175800 1412371296 130680000 17169600 174300000 1734520896
1581855
143748
19229
183015
600000
TOTAL INCOME Expenditure Cost of acquisition of programs Operating expenses Electricity expense Telephone expense Uplinking charges Transponder hiring chages Promotional expenses advertisement expense Payments to employees Salary Bonus Administration expenses Audit fees Insurance Miscellaneous expense Courier charges stationary and printing Travelling expenses Office expenses Preliminary expense written off Depreciation selling & distribution expenses Carriage expenses Interest on loan Rent Decoder Charges Commission to ad agency Service tax paid Corporate tax paid TOTAL EXPENDITURE Dividend paid BALANCE TRANSFRED TO BALANCE-SHEET Income over expenses/ (expenses over income)
1,435,596,000
1561175800
1735120896
1194000000 120000 72000 6000000 14400000 120000 72000 6000000 14400000
1253700000 120000 72000 6000000 14400000
1316385000
20592000 30786000
20592000 32325300
20592000 33941565
120 72 6000 14400
12870000 1072500 37080 38970 250000 100000 48000 1095000 120000 6181900 1126827
13942500
12870000 1072500 37080 38970 250000 100000 48000 1095000 120000 6181900 716656
13942500
14157000 1179750 37080 38970 250000 100000 48000 1095000 120000 6181900 525308
15336750
15572 1297
37 38 250 100 48 1095 120
8997777
8587606
8396258
6181 423
25000000 1120000 300000 420000 24019920
25000000 950564 300000 50859920 118557015 25220916 51471480 130283869 17087808 1527990563
25000000 757408 300000 28247425 54304833 145696058 47745220 1642397684 11887310
25000 537 300
31637
1437735212
(2,139,212)
33185237
80835902
EVALUATION OF PROJECT Net Present Value
CASH INFLOW DISCOUNT FACTOR @ 15% DISCOUNTED CASH FLOW 4497478.05 30303347.51 57603366.38 85797518.09 118595753.3 296797463.3
NO. 1 2 3 4 5 LESS:
YEAR
2009-10 5169515 0.87 2010-11 40083793 0.756 2012-13 87543110 0.658 2013-14 149995661 0.572 1014-15 238623246 0.497 NET PRESENT VALUE OF CASH INFLOW P.V. OF CASHOUTFLOW COST OF PROJECT 37048668 WORKING CAPITAL 10267667 P.V. OF CASHOUTFLOW NET PRESENT VALUE
ADD:
47316335 249481128.3
INTERNAL RATE OF RETURN
CASH INFLOW 5169515 40083793 87543110 149995661 238623246 DISCOUNT FACTOR @ 20% 0.833 0.694 0.579 0.482 0.402 DISCOUNTED CASHFLOW 4306205.995 27818152.34 50687460.69 72297908.6 95926544.89 251036272.5
NO. 1 2 3 4 5
YEAR 2009-10 2010-11 2012-13 2013-14 1014-15
INTERNAL RATE OF RETURN
NO. 1 2 3 4 5
YEAR
CASH INFLOW
DISCOUNT FACTOR @ 21%
DISCOUNTED CASHFLOW 4270019.39 27377230.62 49374314.04 70047973.69 92108572.96 243178110.7
2009-10 5169515 0.826 2010-11 40083793 0.683 2012-13 87543110 0.564 2013-14 149995661 0.467 1014-15 238623246 0.386 NET INTERNAL RATE OF RETURN
IRR= 20% + 251036272.521 - 47316335 x 1% 251036272.521 – 243178110.692 =20% + 203719937.521 7858161.829 =20% + 0.259246 % =20.2592% = 20.25% P.I = P.V. Of Cash Inflow P.V. Of Cash Outflow = 296797463.292 47316335 = 6.27 x 1%
Future Expansion
We will constantly strive to entertain our customers with healthy and innovative programs. We are planning to set up our own production house in future. Apart from this we are also thinking of starting new TV channels in niche segment and news segment.
CONCLUSION
By doing an extensive research over all aspects, we come to the conclusion that the project is feasible. In the end, we can say that we have gained a deep insight into the media industry. We, again, would like to thank the different existing TV channels for giving us the practical insight. We are also thankful to the faculties who guided us at every junction in this journey. Feasibility study revealed a deep hiatus between theoretical and practical aspects of management.
BIBLIOGRAPHY
1. Marketing Management : Philip Kotler 2. Modern Television Practice - R. R. Gulati 3. Advertising and promotions an IMC Perspective - Kruti Shah - Alan D’souza 4. Annual Report of Balaji Telefilms, Zee Television.
WEBOGRAPHY
1. www.google.com 2. www.yahoo.com 3. www.televisionpoint.com 4. www.99acres.com 5. www.indiantelevision.com 6. En.wikipedia.org 7. Mib.nic.in 8. www.indiaproperty.com 9. www.in.kpmg.com
QUESTIONNAIRE ON CONSUMER PREFERENCE ON ENTERTAINMENT TV CHANNEL By Students of 3rd year M.B.A., K.S.School of Business Management N.B.:- 1. The information in the survey will be kept confidential and will be used for research purpose only. 2. Please tick the boxes for ‘YES’ and leave the boxes blank for no response. ----------------------------------------------------------------------------------------------1. Name 2. Address 3. Gender : : ( ) Male ( ) Female ( ) 20-30 :
4. Age : ( ) Below 15 ( ) 15-20 ( ) 30-40 ( ) above 40
5. No. of Family members : 6. Occupation: ( ) Student ( ) Business man ( ) Service ( ) Profession ( ) Housewives ( ) others ______ (please specify) 7. Family income (per month): ( ) Below 10,000 ( ) 10,000-15,000 ( ) 15,000-20,000 ( ) 25,000-30,000 ( ) above 35,000 8. Do you have Television? : ( ) Yes ( ) No
9. Do you have access to T.V. channels? ( ) Yes ( ) No If Yes, What is the source? ( ) Cable connection ( ) DTH __________ (Please specify) ( ) Others___________ (Please specify) 10. Will you buy DTH service in future? ( ) Yes ( ) No 11. What kind of channels do you watch? (Rank them) ( ) Entertainment channel ( ) Sports channel ( ) Religious channel ( ) Music channel ( ) News channel ( ) Infotainment channel ( ) Kids channel ( ) Movie channel 12. In Entertainment channel, which kind of program do you Watch? (Rank them) ( ) Family drama ( ) Music base program ( ) Reality show ( ) Mythological drama ( ) Comedy program ( ) Songs & trailers of movies ( ) Movie ( ) Kids show ( ) Spiritual program (Yoga) 13. Which channel do you prefer more? (Rank them) ( ) Star plus ( ) Colors ( ) Z TV ( ) 9x ( ) Sony ( ) Star one ( ) NDTV imagine ( ) Sahara one ( ) Sab TV ( ) Doordarshan
14. In which time slot, do you watch entertainment channel? ( ) 7:00 to 9:00 a.m. ( ) 9:00 to 12:00 a.m. ( ) 12:00 to 3:00 p.m. ( ) 3:00 to 7:00 p.m. ( ) 7:00 to 10:00 p.m. ( ) 10:00 to 12:00 p.m. 15. List some of your favorite entertainment T.V. programs. _________________________________________________ _________________________________________________
Thanks for your cooperation
SALARY STATEMENT Per month per head 90000 65000
Designation CEO Program Head
No. of employees 1 1
Total 90000 65000
1st year 90000 65000
2nd year 90000 65000
3rd year 99000 71500
4th year 108900 78650
5th year 119790 86515
Executive Producer Creative Supervisor Marketing Head Ad sales Manager Advertiser Manager Finance Manager Accountant HR Manager IT Legal Advisor Tape Librarian Distribution Head Distribution Executive Peon Receptionist Security Guard
5 5 1 10 2 1 2 1 1 1 1 1 4 5 1 1
40000 40000 30000 25000 25000 20000 6000 30000 15000 25000 8000 15000 10000 3000 4500 3000
200000 200000 30000 250000 50000 20000 12000 30000 15000 25000 8000 15000 40000 15000 4500 3000
40000 40000 30000 25000 25000 20000 6000 30000 15000 25000 8000 15000 10000 3000 4500 3000
40000 40000 30000 25000 25000 20000 6000 30000 15000 25000 8000 15000 10000 3000 4500 3000
44000 44000 33000 27500 27500 22000 6600 33000 16500 27500 8800 16500 11000 3300 4950 3300
48400 48400 36300 30250 30250 24200 7260 36300 18150 30250 9680 18150 12100 3630 5445 3630
53240 53240 39930 33275 33275 26620 7986 39930 19965 33275 10648 19965 13310 3993 5989.5 3993
Necessary forms for getting the uplinking and downlinking channels
FORM 1 Application form for permission to
(i) set up uplinking hub/ teleports, (ii) uplink TV Channels (both News & Current Affairs and Non-News & Current Affairs) and (iii) uplink to news agencies. (One original and four identical copies to be submitted). The Secretary, Ministry of Information & Broadcasting, Shastri Bhawan, ‘A’ Wing, New Delhi-110 001. Subject: Application for permission to ………………………………... (Please mention the purpose of application).
Sir, I hereby submit the following details in support of the eligibility as prescribed in the guidelines for uplinking, in addition to other particulars: 1. i) ii)
Sl no
Name of Applicant Company: _____________________________________ Particulars of the Directors (starting with CEO/MD):
Date of Birth Nationality Passport Details, If Any Position held Address
Name/ Parentage
(Any change in Board of Directors prior to issue of permission to be informed immediately to the Ministry. The company would have to obtain prior permission from the Ministry in case of change of Directors, after issue of permission.) 2. i) Address (Office) (a) Head Office (b) Regional Office
ii)
Telephone Number (s) FAX: e-mail: Registration details (enclose Memorandum & Articles of Association)
iii) 3.
Structure of Equity Capital i) Authorised share capital: Rs. _____________ ii) Paid up share capital: Rs. _____________
4.
Share-Holding pattern: (Enclose details as per Annexure) i) Direct investment (a) Indian (b) Foreign ______% ______%
Break-up of Foreign Direct Investment Individual………….% Company…………..% NRI………………..% OCB……………….% PIO………………..% ii) (a) (b) Portfolio Investments Indian…………% Foreign………..%
Break-up of Foreign portfolio Investment FIIs NRIs OCBs PIOs iii) Total foreign equity in the company (Direct & Indirect) ………
(Indicate the detailed calculation, including indirect foreign equity as per clause 3.1.3 and enclose SHP of all investing companies.) 5. (i) Net worth: …………………………
(Enclose a copy of the audited balance sheet and Profit & Loss Account for the immediate preceding year and certificate of Net Worth on the basis of these documents by a Chartered Accountant as per format enclosed, in case the networth certificate is on a date different from end of the financial year, it should be supported by certified balance sheet from the statutory auditor on the date of such certification.) (ii) Source of funding: (Enclose a copy of the project report with all technical details, flow of funds and source of funding.) 6. 7. Field of activity: (i) Details of transponder(s) for uplinking and downlinking: Name of Orbital satellite(s) location proposed to be hired Type and No. of transponder(s) with bandwidth Signal strength in primary zone over India Name of the Uplink & Company from downlink which the frequencies. satellite/transponder is to be leased
(Enclose lease Agreement & footprint of each satellite proposed to be hired) (ii) In case of foreign satellite, the detailed reasons for not using the capacity on Indian satellite may be enclosed. Additiona details in case of application for a teleport. 8. i) ii) Details of teleport Location of teleport Capacity of teleport (Proposed)
(a) (b) (c ) (d) (e)
No. of channels: No. of satellites: No. of proposed earth stations constituting teleport Approximate date for commissioning the teleport Antenna size of the teleport, EIRP
Additional details in case of application for uplinking a TV channel. (For both Non-News & Current Affairs and News & Current Affairs)
9.
Details of uplinking hub (Teleport) a) Name and address of the company providing the Teleport for uplinking. b) Location of teleport c) Antenna size of teleport, EIRP d) Permission details of the teleport, status of its operationalisation and period of agreement with the Teleport Service Provider . (Enclose a copy of the agreement with the Teleport Service Provider, in
case of a Third Party Teleport.) 10. Number & name of channel (s) to be uplinked indicating the proposed date of commencement of uplinking from proposed hub/ teleports. Sl.No. Name of Language the Channel Digital or Free to Air Proposed date Analog or of Encrypted commencement of uplinking
11. Whether declaration in Form 1A and 1B or 1C enclosed. (Yes/No) and also mention the details. [Please note that declaration in Form 1A& 1B are required in the case of a News & Current affairs TV channel, whereas declaration in Form 1A & 1C are to be furnished for a Non-news & current affairs TV channel.]
Additional details in case of application for a News & Current Affairs TV Channel. 12. Particulars of the News Editor(s), authority(ies)/body(ies) exercising editorial control over news & current affairs
Sl no Name/ Parentage Date Of Birth Nationality Passport Details, If Any Position held Address
(Any change in the news editor prior to the issue of permission will have to be informed immediately to the Ministry. The company would seek prior clearance from the Ministry in case of such change, after issue of permission.) 13. Whether the representation on the Board of Directors are proportionate to the shareholding in the company ----- (Yes/ No) If not, the reasons thereof: …… 14. 15. PIB accreditation details (enclose certificate) Whether company conforms to Clause (C) of the eligibility criteria (Yes/ No) (Enclose documents in support of compliance and a certificate to this effect by a Chartered Accountant.) 16. Disclosures about shareholders agreements, loan agreements and such other agreements that are finalized or are proposed to be entered into. (Enclose all the documents):
Additional details in case of application for uplinking to news agencies. 17. PIB accreditation details (enclose certificate)
18. Is the news agency 100% owned by Indians, if so, enclose shareholding pattern with details as per Annexure.
19.
Give details of equipment for distribution of news material (i) SNG, (ii) DSNG, (iii) Permanent Earth Station Give details of the equipment to be used for collecting news material (i) SNG, (ii) DSNG Location(s) at which news gathering/distribution equipment to be installed.
20.
21.
I/We, __________________________________the applicant(s) declare that the above facts are correct in all respects. Place : Date : Name Office Address: Seal
do hereby
(Signature of Applicant) [Authorized Signatory of the Company]
List of Enclosures attached with the Application Please tick against the following documents enclosed with the application (as applicable): (1) (2) (3) (4) Memorandum & Article of Association [ point 2(iii). Shareholding Pattern as per Table 1 for Applicant Company & Table 2 for investing companies [point 4]. Calculation Sheet for Foreign Equity in the company (Direct & Indirect) [point 4(iii)] with copy of FIPB approval. Audited Balance sheet and Profit & Loss Account for the immediate preceding financial year and Certificate of Net Worth (as per enclosed format with notes) by a Chartered Accountant on the basis of these documents [point 5(i) ]. (4.1) In case the networth certificate is on a date different from end of the financial year, it should be supported by certified balance sheet from the statutory auditor on the date of such certification.
(4.2) (5) (6) (7) (8) (9) (10) (11) (12) Place : Date :
In case shares have been allotted on basis of valuation of a property / equipment, then valuation certificate from an approved valuer should also be enclosed. Satellite lease agreement and details of footprint [point 7]. Project Report [point 5(ii)]. Copy of the agreement with the Teleport Service Provider, in case of a third party teleport [point 9]. PIB Accreditation Certificate [point 14]. Certificate by a Chartered Account with all the supporting document in compliance to Clause (C) [point 15]. Shareholding and Loan Agreements, if any [point 16]. Affidavits in Form 1A & 1B or 1C point 11]. Any other: ………………………………… (Signature of Applicant) Name Office Address:
[All pages of the application to be page numbered in reverse order (last page to be numbered 1 and certified by authorised signatory of the company with seal] [Note: In case of non furnishing of complete information, the application is liable to be rejected and returned to the company forthwith.]
ANNEXURE TO FORM 1. FORMAT FOR SHAREHOLDING PATTERN TO BE FURNISHED ALONG WITH APPLICATION TABLE-1 SHAREHOLDING PATTERN OF APPLICANT COMPANY
M/s ______________________ AS ON __________ FACE VALUE OF THE SHARE RS.__________________
S.No.
Category of Shareholders.
Share Holding Direct Investment No. of % of total Shares paid up shares No. of Shares Portfolio Investment % of total paid up shares
1. 2. 3. 4. 5. 6. 7. 8. 9.
Indian individual Indian company Foreign individual Foreign company NRI OCB FII PIO Any other
(i) For Indian company (ies), information as per proforma in Table-2 also to be supplied for each company. (ii) Complete beak-up of number of shares of the applicant company held by each Indian company should also be provided. (iii) In case of FDI enclose copy of FIPB approval.
TABLE-2 DETAILS OF SHAREHOLDING PATTERN OF EACH INDIAN COMPANY HOLDING SHARE IN THE APPLCANT COMPANY AS IN SERIAL NO.2 IN COLUMN (1) OF TABLE-1
i)
SHAREHOLDING PATTERN OF COMPANY
M/s ______________________ AS ON __________
FACE VALUE OF THE SHARE RS.________________________ S.No. Category of Shareholders. Share Holding Direct Investment No. of % of total paid No. of Shares up shares Shares 1. 2. 3. 4. 5. 6. 7. 8. 9. Indian individual Indian company Foreign individual Foreign company NRI OCB FII PIO Any other Portfolio Investment % of total paid up shares
ii) iii)
- Do - Do -
Note: Repeat same information about each Indian company holding share in the applicant company.
FORM-1A AFFIDAVIT/UNDERTAKING (on Rs 20 Stamp Paper & Notarized) WHEREAS I, Shri ………………… S/o Shri _________________in the capacity of …………..(designation) have applied to the Ministry of Information & Broadcasting on behalf of M/s……………………….for approval/permission for uplinking of TV channel ………………. From ……………….. (place). WHEREAS as a condition precedent to above approval/permission, I am required to abide by the Programme & Advertising Codes prescribed under the cable Television Network (Regulation) Act, 1995 and the rules passed thereunder. WHEREAS I have read the abovementioned Programme & Advertising Codes. WHEREAS I understand that the permission/approval so granted can be withdrawn, if I fail to abide by the said Programme & Advertising Codes. Now, therefore, I hereby undertake as follows: i) I undertake to abide by the Programme & Advertising Codes laid down by the Ministry of Information & Broadcasting, Government of India from time to time. ii) I undertake to furnish periodic information relating to public complaints, programme contents and any other information in respect of above-mentioned TV channels as may be laid down/asked for by the Ministry of Information & Broadcasting from time to time. iii) I undertake to provide the necessary equipment and facility for continuous monitoring of the broadcaster service at my own cost and preserve the recordings of broadcasting materials for a period of 3 months from the date of broadcast and produce the same to Ministry of Information & Broadcasting or to its authorized representative as and when required. Signature Name Designation Seal of Company Place : Date :
FORM-1B [for news & current affairs TV channels] AFFIDAVIT/UNDERTAKING (on Rs 100 Stamp Paper & Notarized)
WHEREAS M/s _____________________________ have applied to the Ministry of Information & Broadcasting for approval/permission for uplinking of a TV channel _____________________________. WHEREAS information have been provided in Form 1 supported by affidavit in Form 1A and declarations in Table I and Table II. WHEREAS I understand that the information given in the application and in Form 1A, 1B and Table I and Table II form a composite part of this permission. I do herby undertake that I will abide by all the terms and conditions applicable to uplinking of News & Currents Affairs TV Channels at all times.
For and on behalf of M/s _______________________________
Company Secretary. Seal of the Company Date: Place:
FORM- 1C AFFIDAVIT/UNDERTAKING [For Non-News & Current Affairs TV Channel] (on Rs 100 Stamp Paper & Notarized) WHEREAS M/s.--------------------------------------------------------------have applied to the Ministry of Information & Broadcasting for approval/permission for uplinking of a TV channel -------------------------------------. WHEREAS information have been provided in Form 1 supported by affidavit in Form 1A and declarations in Table I and Table II along with other related documents (i.e. Memorandum and Articles of Association, project report, satellite lease agreement, etc.) WHEREAS we understand that the information given in the application and in Form 1A 1C and Table I & II and other related documents form a composite part of this permission. We submit that the channel is purely an entertainment channel and does not have any news or current affairs based programme. We hereby undertake that in accordance with the guidelines for uplinking of TV channels, we will seek fresh permission from the Govt., should there be a change in the Programme content of the channel to include news/current affairs along with a change in the ownership pattern to include any element of foreign equity/management control and that prior information of any such proposed change shall be given to the Government. We also undertake to supply information, in the format as prescribed by the Govt. from time to time.
For and on behalf of M/s.--------------------------Authorized Signatory Seal of the Company Date : Place:
Format for the Certificate of Net Worth by the Statutory Auditors
We have audited the Books of Accounts of M/s._______________________ for the financial year ended March 31,20__/ period ended dd/mm/year and certify that the Net Worth of M/s.____________________________________________________ as on March 31,20__/as at dd/mm/year is Rs._______________(Rupees in words _______________________________________________________) We further certify that the Networth of M/s.____________________ (Name of the company) is computed as follows.
Sl.No.
Particulars
Amount in Rs.lacs
1. Book Value of assets 2. Book value of fictitious and intangible assets 3. Liabilities other than owner’s funds 4. Net Worth {1-(2+3)} Place/date statutory auditors Notes 1. “Net Worth” has been defined in the Companies Act under section 2(29A) as follows. ‘net worth means the sum total of the paid-up capital and free reserves after deducting the provisions or expenses as may be prescribed. Explanation for the purpose of this clause, “free reserves” means all reserves created out of the profits and share premium account but does not include reserve created out of revaluation of assets, write back of depreciation, provisions and amalgamations. 2. Networth The excess of the book value of assets (other than fictitious assets) of an enterprise over its liabilities. “Book value of assets” The amount at which an item appears in the books of account or financial statements. It does not refer to any particular basis on which the amount is determined. Eg. Cost, replacement value etc. “Fictitious Assets” Items grouped under the assets in a balance sheet which has no real value (eg. The debit balance of the profit and loss account) “Liabilities” The financial obligation of an enterprise other than owner’s funds.
Owner’s funds means paid-up capital and free reserves Explanation for the purpose of this clause, “free reserves” means all reserves created out of the profits and share premium account but does not include reserve created out of revaluation of assets, write back of depreciation provisions and amalgamations.
(This note should not be deleted from the certificate submitted)
FORM 1 Application form for permission to downlink TV Channels in India (both News & Current Affairs and Non-News & Current Affairs) (One original and four identical copies separate for each channel).
To, The Secretary, Ministry of Information & Broadcasting, Shastri Bhawan, ‘A’ Wing, New Delhi-110 001.
Subject: Application for permission to ………………………………... (Please mention the purpose of application).
Sir, I hereby submit the following details in support of the eligibility as prescribed in the guidelines for downlinking, in addition to other particulars: PART - A: REQUEST FOR PERMISSION TO DOWNLNK TV CHANNELS (DETAILS OF APPLICANT COMPANY) :
1.
Name of the Applicant Company and Status (Pvt. Ltd./Pub. Ltd.)
2.
Complete Postal Address with Telephone/Fax Nos. E-mail ID (i) Corporate Office/Head Office ii) Registered Office ii) Regional Offices/ Country/ nature of activity
:
:
3.
Address for Correspondence with Telephone/Fax/E-mail
:
4.
Name of Authorised Contact Person, His designation and Telephone/Fax Nos/E-mail ID.
:
5.
Processing fee paid and details of payment.
:
6.
Registration details under : Company’s Act 1956: Incorporation No. and Date (attach a copy of Certificate of incorporation and Memorandum &Articles of Association).
7.
Details of Promoters & Majority Shareholders (Attach a separate sheet giving Name, Address, contact Telephone and equity held in terms of amount and percentage of paid up equity).
8.
Details of the Company
:
8.1
Board of Directors (Attach list of Directors along with bio-data of each Director giving date of birth, place of birth, parentage, nationality, permanent address, residential address, official address, passport number (if any), qualification, experience, parentage etc).
:
8.2
Key Executives: Starting with : CEO/MD, Head of Marketing, Head of Programming etc. (Attach list of Key Executives along with bio-data of each Director giving date of birth, place of birth, parentage, nationality, permanent address, residential address, official address, passport number (if any), qualification, experience, parentage etc.)
(Any change in Board of Directors prior to issue of this permission to be informed immediately to the Ministry. The company shall intimate to the Ministry in case of change of Directors, after issue of permission to obtain their security clearance).(Clause 5.11 of guidelines ).
8.3
Equity
:
Amount (Rs. in lakhs)
(A) Authorised Capital:
:
Amount (Rs. in lakhs) (B) Issued paid up capital
:
As % of Authorised Capital
Amount (Rs. in lakhs)
(C) Classification of equity holding
:
As % of Capital (B)
Paid
up
(i)
Total equity held by Indian Promoters/Majority Shareholders
:
(ii)
Pro rata share of FDI in the Promoters/Majority Shareholders.
:
(iii )
Indian Financial Institutions and Banks. :
(iv) Other Indian Shareholders. : (v)
Percentage of Majority Shareholders’ equity to Total Paid : up Equity net of Banks and Financial Institutions Equity.
(vi) Direct FDI holding (including FIIs,
PIOs, NRsI, etc- give break-up)
( enclose copy of FIPB approval) (vii) Indirect FDI/FII (Pro rata share of
FDI in Indian Promoters majority shareholders) and
:
:
(viii) Foreign
Institutional Portfolio Investments.
Investors/
:
(ix) Total foreign Equity Holdings.
[(vi)+ (vii)+ (viii)]
:
(9)
Net Worth of Applicant Company in prescribed format. : Net Worth to be calculated in accordance with number of channels being downlinked. [Please enclose a copy of the audited balance sheet and Profit & Loss Account for the immediate preceding year and certificate of Net Worth on the basis of these documents by Statutory Audito.r In case the networth certificate is on a date different from end of the financial year, it should be supported by certified balance sheet from the statutory auditor on the date of such certification.
10.
Annual reports and Audited Accounts for the last three years or in the case of a newly incorporated company, balance sheets from the date of incorporation till date certified by the statutory Auditor to support its claim of financial
:
eligibility.]
11.
Major area of activity/ business
:
12.
The number and names of channels being downlinked or proposed to be downlinked. (For each channel details in Part B & C to be provided separately):
Does the Applicant Company hold any other licence from Department of : Telecommunications (DOT) /Department of Information Technology (DOIT)/ Wireless planning and Coordination (WPC) or Ministry of Information and Broadcasting (MIB)? If so, please give details.
13.
14.
Has the Applicant Company made any other application to Ministry of Information and Broadcasting (MIB)? If so, please give details.
:
15. (i)
Has the Applicant Company been denied permission for uplink or downlink of a TV channel at any point of time? If so, please give details.
:
16.
Has the Applicant Company ever been disqualified from permission to uplink or : downlink of a TV channel at any point of time? If so, please give details.
Place: Date:
(Signature of Applicant) [Authorized Signatory of the Company] Name Office Address: Tel./fax No. & e-mail ID:
Company’s Seal
PART - B:
COMMERCIAL & TECHNICAL DETAILS FOR DOWNLNKING A TV CHANNEL
being/
1(i) 1(ii)
Name of the Channel proposed to be, downlinked.
:
Owner of the channel
2.(i) Does the Applicant Company own
the channel being or proposed to be : downlinked or do they have marketing and/ or distribution rights for territory of India? (Please enclose relevant documents in support): Please enclose the Memorandum/ Articles of Association, Marketing/ Distribution Agreement as applicable.
(ii)
In case the Applicant Company has marketing and/ or distribution : rights, do they have the authority to conclude contracts on behalf of the channel for advertisements, subscription and programme content? If yes, please enclose copy of the Agreements.]
(iii )
Whether the channel will be marketed in a particular area or : locality other than in India or whole of India? Please give details. Details of transmission of the channel: Name of satellite hired/ proposed to be hired for uplinking and downlinked the TV channel
3. (i)
:
(ii) (iii )
Orbital location
:
Type and No. of transponder(s) with bandwidth
:
(iv) Signal strength in primary zone over
India
:
(v)
Name of the Company from which the satellite/ transponder is to be : leased.
(vi) Uplink & downlink frequencies.
(Enclose map of footprint of the : satellite proposed to be hired for downlinking)
4. (i)
Name of the country/ location of uplinking: If it is a channel from India, please enclose a copy of the permission for uplinking. Please indicate the name of the teleport approved for providing uplinking facilities and the date of grant of permission for uplinking and period of permission for uplinking.
:
(ii)
If the channel is uplinked from another country, please enclose a
copy of the license/ approval granted by the licensing or regulatory authority of that country and indicate the exact place and country of uplinking. Please also indicate the date of issue of license/ permission and validity.
:
(iii )
Are there any intermediate hops of the uplinked signal before being : downlinked in India, if so do you possess the broadcasting license of the concerned regulatory or licensing authorities of those countries. If yes, please enclose copies of the relevant licenses.
5.
Proposed date of commencement of downlinking. : If the channel is already being downlinked, please indicate date and time since when it is being downlinked in India for public viewership.
6.
Please furnish, technical details such as Nomenclature, make, module, : name and address of the manufacturers of the equipment/instruments to be used for downlinking distribution, the Block schematic diagram of the downlinking and distribution system. (Technical specifications should be furnished in detail and schematic diagram should be channel specific.) Please indicate the name and address of the company or its associate where : the applicant company shall provide to the Govt. the necessary equipment and facilities for continuous monitoring of the broadcast in India and presentation of the recordings of such broadcast for a period of three
7.
months from the date of each broadcast.
8. (i)
The Applicant Company’s year-wise collection for the last three years : of:____________ Advertising revenue from Indian market for the TV channel
(ii)
Subscription revenue from Indian market for the TV channel :
(iii )
Revenue from sale of programme content for other use such as DVD’s/CD’s/ mobile telephone etc.
:
(iv) Please furnish audited copies of :
profit & loss account and The balance sheet of the applicant Company for the last three years or if incorporated later from the date of incorporation.
9. (i)
Please furnish names and addresses of the following:. Distributors of the channel in India and their areas of operations.
:
(ii). MSOs in India who are authorized
downlink and transmit the channel : in India and their areas of operation.
(iii) .
Local cable operators who are authorized to directly downlink and : transmit the channel in India and their areas of operation.
(iv). DTH networks that are authorized to
carry the channel and their areas of operation.
:
(v). Out of the preceding categories,
please indicate the names of those distributors/ DTH operators/ MSOs/ LCOs with whom formal agreements have not been signed and copies filed with TRAI and the reasons thereof.
:
PART C:
1.
For Registration of the TV Channel
:
Name of the Channel
2.
Logo of the channel (Please annex pictorial depiction)
:
3.
Is the name and/ or logo registered under the Trade Marks Act, 1999?
:
4.(a)
Is the name and/ or logo or a part : thereof being used by any other TV channel in India or abroad?
(b)
If so, is the name and/ or logo or a part thereof registered as a trade mark or a brand under the Trade Marks Act, 1999 of India or the corresponding law of the country of origin? And if so, in whose name? (Name attach relevant documents)
:
(c)
If the answer to 4(b) above is yes, is : there an agreement between the name and/ or logo owner and the applicant company for its use in India? Please furnish full details of the agreement.
5
What percentage of the proposed channel time will be utilized for telecasting programme content of the channel owning the registered trade mark (name and/ or logo) to justify its use by the applicant company? Please give full detail of the content sharing arrangements with relevant documents.
:
6
Category of Channel: Please tick mark the category to which the proposed channel belongs:
:
(a)
General News & Current Affairs Channel.
(b)
General Entertainment Channel (with serials, interactive programmes, music, movies, lifestyle, travel & tourism and cultural activities etc.)
:
(c)
Special or Niche Channel e.g. Sports, Environment, Science, Technology, Religion.
:
7.
In case of (c) please specify the special subject for the channel.
:
8.
The language in which the proposed channel will be telecast in India.
:
9.
In the case of general News & Current Affairs Channel, please furnish the following information: Where is the content of this News & Current Affairs channel collated and uplinked from, alongwith advertisements? Does the same content, including advertisements get beamed into other countries? It so, please name those countries.
:
(i)
ii)
:
(iii)
If answer to (ii) is no, please clarify whether there is a customized signal for India.
:
(iv)
What is the proportion of : advertisements carried as compared to the total programming time in 24 hrs.?
(v)
What is the proportion of Indian : advertisements? Note: Indian advertisements means advertisements made in India, intended only for Indian viewers and of either an Indian or Foreign Product.
(vi)
What proportion of the channel’s programming in 24 hours, is carrying Indian/ India specific content i.e. content intended for India, based on Indian events?
:
(vii
Whether the channel can be called a
:
)
standard international channel? If yes, please provide an indicative schedule in support.
(viii )
Are you seeking a waiver/ : modification of Clause 2.4.1?
(ix)
If yes, please indicate your : arguments in support with full data on proportion of international and Indian programme content and advertisements and subscription and advertisement revenues derived therefrom.
10. (i)
Is the channel Free to Air or pay channel? : If the channel is a pay channel, please confirm that the decoders are being supplied or shall be supplied only to registered cable operators/ MSOs and DTH operators.
(ii)
:
(iii)
Is the channel signal digital or analogue? : Who makes or will make the final editorial decisions about : programming and where are they made or going to be made? Indicate the name, address, and contact number etc. of the individual so responsible.
11. (i)
(ii)
Is there any internal mechanism to regulate content telecast on the
:
channel? If so, please explain in detail. How will the channel ensure the adherence to the Programme and Advertising Code?
(iii)
Is there any mechanism to receive complaints and redress grievances of the public regarding content of the channel? Please explain in detail.
:
12
Contact person: Give the name of the person who will be the applicant’s primary point of contact with Ministry of Information & Broadcasting for compliance purposes. His address, email, phone number, fax number etc. should be given. The authority letter issued by the Company be annexed.
:
13
Period for which registration of the channel is applied for. (The period shall not be more than the period for which the applicant company has the marketing/distribution rights of the channel for India).
:
GENERAL Whether declaration in Form 1A and 1B enclosed. (Yes/No) and also mention the details. Declaration: 1. We hereby apply for the grant of a registration for the TV channel (as given in Part B & C) to be downlinked and distributed in India as described above and declare that the information given in this application form, to the best of my knowledge and belief, is correct.
2.
We hereby apply for grant of permission to downlink the TV channel as mentioned in our application above and declare that the information given in this application form, to the best of my knowledge and belief is correct. We also undertake to enter into an Agreement for Grant of Permission (GOPA) with Ministry of I&B for each and every channel being downlinked by us. We hereby affirm that we will abide by all terms and conditions of registration and rules and regulations prescribed by the Government of India under Downlinking Guidelines the laws of the land and any other broadcasting law to be enacted in the future.
3.
Place: Date:
(Signature of Applicant) [Authorized Signatory of the Company] Name Office Address: Tel./fax No. & e-mail ID:
Company’s Seal
List of Enclosures attached with the Application Please tick against the following documents enclosed with the application (as applicable indicating page numbers): (13) (14) (15) (16) (17) (18) (19) (20) An attested copy of Applicant Company’s Registration Certificate under Company’s Act 1956. A copy of Certificate of incorporation; Memorandum & Articles of Association, with copy of form 2, form 5 and form 32 submitted to ROC. Marketing/ Distribution Agreement, these should be in legal format, notarized, and binding in nature strictly in accordance with clause 1.3 and 1.4 of the guidelines. A note on conformity to be included and relevant clauses in these agreements highlighted.. Shareholding Pattern as per Table 1. FIPB approval. A separate sheet giving Name, Address, contact Telephone of Promoters & Majority Shareholders and equity held in terms of amount and percentage of paid up equity. A list of Key Executives along with bio-data of each Director giving date of birth, place of birth, parentage, nationality, permanent address, residential address, official address, passport number (if any), qualification, experience, parentage etc. Audited Balance sheet and Profit & Loss Account for the last 3 financial years and Certificate of Net Worth by a Chartered Accountant on the basis of these documents. (8.1) In case the networth certificate is on a date different from end of the financial year, it should be supported by certified balance sheet from the statutory auditor on the date of such certification.
(21) (22)
(23) (24) (25) (26) (27) Place Date
(8.2) In case shares have been allotted on basis of valuation of a property / equipment, then valuation certificate from an approved valuer should also be enclosed. Details of map of footprint of the satellite proposed to be hired/ being used for downlinking (channel wise). Copy of the permission for uplinking the channel. Copy of the license / approval granted by the licensing or regulatory authority of that country (channel wise). Uplink and downlink license issued in favour of teleport servise provider alongwith copy of uplink service agreements, copy of broadcasting license to run an international licenseable television content service in favour of channel owner. Copy of relevant documents of Applicant Company evidencing ownership of channel/s being or proposed to be downlinked or marketing and/or distribution rights for territory of India for each channel. Copy of documents in support of a News and Current Affairs Channel fulfilling the eligibility criteria prescribed in the guidelines. An indicative programme schedule. Affidavits in Form 1A & 1B. Any other: ………………………………… : : (Signature of Applicant) Name Office Address:
[Note: In case of non-furnishing of complete information, the application is liable to be rejected and returned to the company forthwith.]
All pages of the application to be certified by the authorized signatory with seal of the company and page numbered in reverse order (last page to be numbered as 1).
ANNEXURE TO FORM 1. FORMAT FOR SHAREHOLDING PATTERN TO BE FURNISHED ALONG WITH APPLICATION TABLE-1 SHAREHOLDING PATTERN OF APPLICANT COMPANY M/s ______________________ AS ON __________ FACE VALUE OF THE SHARE RS. __________________
S.No.
Category of Shareholders.
Share Holding Direct Investment No. of % of total Shares paid up shares No. of Shares Portfolio Investment % of total paid up shares
1. 2. 3. 4. 5. 6. 7. 8.
Indian individual Indian company Foreign individual Foreign company NRI FII PIO Any other
Provide complete details as required under 8.3 of Part A.
Signature of Company Secretary with seal
FORM-1A AFFIDAVIT/UNDERTAKING (on Rs 20 Stamp Paper & Notarized) WHEREAS I, Shri ………………… S/o Shri _________________in the capacity of …………..(designation) have applied to the Ministry of Information & Broadcasting on behalf of M/s……………………….for approval/permission for downlinking of TV channel ………………. in ……………….. (place). WHEREAS as a condition precedent to above approval/permission, I am required to abide by the Programme Code and Advertising Code prescribed under the cable Television Network (Regulation) Act, 1995 and the Rules passed thereunder. WHEREAS I have read the abovementioned Programme Code and Advertising Code. WHEREAS I understand that the permission/approval so granted can be withdrawn, if I fail to abide by the said Programme & Advertising Codes. Now, therefore, I hereby undertake as follows: i) I undertake to abide by the Programme Code and Advertising Code laid down by the Ministry of Information & Broadcasting, Government of India from time to time. ii) I undertake to furnish periodic information relating to public complaints, programme contents and any other information in respect of above-mentioned TV channels as may be laid down/asked for by the Ministry of Information & Broadcasting from time to time. iii) I undertake to provide the necessary equipment and facility for continuous monitoring of the broadcaster service at my own cost and preserve the recordings of broadcasting materials for a period of 3 months from the date of broadcast and produce the same to Ministry of Information & Broadcasting or to its authorized representative as and when required.
Signature Place: Name Designation
Date :
Seal of Company FORM- 1B AFFIDAVIT/UNDERTAKING [For Entertainment TV Channel/News & Current Affairs TV Channel] (on Rs 100 Stamp Paper & Notarized)
WHEREAS M/s.--------------------------------------------------------------have applied to the Ministry of Information & Broadcasting for approval/permission for downlinking of a TV channel -------------------------------------. WHEREAS information have been provided in Form 1 supported by affidavit in Form 1A and declarations in Table I along with other related documents (i.e. Memorandum and Articles of Association, project report, satellite lease agreement, etc.) WHEREAS we understand that the information given in the application and in Form 1A 1C and Table I and other related documents form a composite part of this permission. We submit that our channel is purely an Entertainment TV Channel/News & Current Affairs TV Channel and have/does not have any news or current affairs based programme. We hereby undertake that in accordance with the guidelines for downlinking of TV channels, we will seek fresh permission from the Govt., should there be a change in the Programme content of the channel to include news/current affairs along with a change in the ownership pattern to include any element of foreign equity/management control and that prior information of any such proposed change shall be given to the Government. We also undertake to supply information, in the format as prescribed by the Govt. from time to time.
For and on behalf of M/s_______________________ Authorized Signatory Seal of the Company Date : Place:
Format for the Certificate of Net Worth by the Statutory Auditors
We have audited the Books of Accounts of M/s._______________________ for the financial year ended March 31,20__/ period ended dd/mm/year and certify that the Net Worth of M/s.____________________________________________________ as on March 31,20__/as at dd/mm/year is Rs._______________(Rupees in words _______________________________________________________) We further certify that the Networth of M/s.____________________ (Name of the company) is computed as follows.
Sl.No.
Particulars
Amount in Rs.lacs
1. Book Value of assets 2. Book value of fictitious and intangible assets 3. Liabilities other than owner’s funds 4. Net Worth {1-(2+3)} Place/date
statutory auditors
Notes 3. “Net Worth” has been defined in the Companies Act under section 2(29A) as follows. ‘net worth means the sum total of the paid-up capital and free reserves after deducting the provisions or expenses as may be prescribed. Explanation for the purpose of this clause, “free reserves” means all reserves created out of the profits and share premium account but does not include reserve created out of revaluation of assets, write back of depreciation, provisions and amalgamations. 4. Networth The excess of the book value of assets (other than fictitious assets) of an enterprise over its liabilities. “Book value of assets” The amount at which an item appears in the books of account or financial statements. It does not refer to any particular basis on which the amount is determined. Eg. Cost, replacement value etc. “Fictitious Assets” Items grouped under the assets in a balance sheet which has no real value (eg. The debit balance of the profit and loss account) “Liabilities” The financial obligation of an enterprise other than owner’s funds.
Owner’s funds means paid-up capital and free reserves Explanation for the purpose of this clause, “free reserves” means all reserves created out of the profits and share premium account but does not include reserve created out of revaluation of assets, write back of depreciation provisions and amalgamations.
doc_165534148.doc
Television (TV) is a telecommunication medium for transmitting and receiving moving images that can be monochrome (black-and-white) or colored, with or without accompanying sound. "Television" may also refer specifically to a television set, television programming, or television transmission.
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Particulars Acknowledgement Introduction - Meaning - History of Indian television - Industry overview - Reasons for selecting the project Environmental Scanning - SWOT Analysis - PEST Analysis Project at a glance Legal feasibility - Laws - Policy guidelines for uplinking & down linking - Formation of company Technical feasibility - What is technical feasibility? - Technical facilities - Furniture & Miscellaneous assets - Requirement of utilities - Location Analysis - Plant layout Human Resource feasibility - Organization chart - Job profile - Employee welfare & retention Marketing feasibility - 7 p’s of marketing - Marketing research - Findings & conclusions Financial feasibility - Cost of project - Means of finance - Assumptions of financial statement - Working capital statement - Income Expenditure Statement - Balance sheet - Cash flow statement - Ratios - Evaluation of project
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ACKNOWLEDGEMENT
An acknowledgement, which is so often overlooked by people who read a project. This is very important and integral part of the project. This has proved to be the first step towards globalize world along with healthy management skills. This project has been through out a great learning about Entertainment TV channel. We take this opportunity to express our heart felt gratitude towards all those who generously helped us with their knowledge and experience. Sometime it is easy to get the theoretical knowledge, but getting practical knowledge is an important thing which is not possible without the support, guidance, motivation and inspiration provided by different persons. We are highly indebted to Prof. Sarla Achuthan, Director of “K.S. SCHOOL OF BUSINESS MANAGEMENT” Who gave us chance of implying ourselves in such a project assignment. We would like to thank Mr. Kaushik Trivedi for his kind support and criticisms that he had expanded to us at every junction of our air journey. Here we would like to add warm thanks to all management faculty members of our institute. We take this opportunity to thank all the members and employee of Doordarshan Kendra, Zee Gujarati, E TV Gujarati, GTPL for giving their full co-operation. As it is not possible to name individually everyone who helped us directly or indirectly, let us suffice to say that their cooperation was of immense use to us. So, we thank all of them.
INTRODUCTION
• Meaning • History of Indian Television • Industry Overview • Reasons for selecting the project/scope
WHAT A T.V. CHANNEL IS ?
Entertainment means amusement or pleasure. ‘T.V. Station’ is a broadcast station that transmits both audio and video signals to television receivers in a particular area. According to The Prasar Bharati Act,1990 ‘Broadcasting’ means the dissemination of any form of communication like signs, signals, writing, pictures, images and sounds of all kinds by transmission of electromagnetic waves through space or through cables intended to be received by the general public either directly or indirectly through the medium of relay stations. T.V. Channel is a set up which collects different programmes which are either inhouse productions or purchased from outside i.e. outhouse production and then telecast it to the viewers. Entertainment T.V. channel have the programmes meant for entertainment of people. Entertainment programmes may include family drama, youth oriented series, reality shows, mythological drama, music based shows, comedy programmes, talk shows, game shows, cookery shows etc.
HISTORY OF INDIAN TELEVISION
Television in India has been for nearly four decades. Doordarshan, a publics sector broadcaster is among the largest terrestrial television network in the world. The service was started in New Delhi on 15 September,1959 to transmit educational and development programmes on an experimental basis with half an hour programming. Doordarshan was established on 15 September 1976. For the first 17 years, it spread haltingly and transmission was mainly in black and white. The government looked down on it as a luxury Indians could do without. Sales of TV sets, as reflected by licenses issued to buyers were just 6,76,615 until 1977. However, there were a few events that propelled television to the forefront in the past two decades. The first was in the eighties when colour television was introduced by the state owned broadcaster DD, in conjunction with the 1982 asian games which India hosted. DD then rapidly proceeded to install transmitters nationwide for terrestrial broadcasting. In 1984 more or less every day saw the insallation of a transmitter in the country. In this period no private enterprise was allowed to set up television station or to transmit television signals. During this period, Indian viewers had to make do with DD’s dull, non-commercial programming, mainly directed towards education and socio-economic development. Entertainment programmes were few and far between. So when the solitary few soaps like Hum Log(1984), and mythological dramas like Ramayan(1987-88) and Mahabharat(1988-89) were televised, millions of viewers stayed glued to their sets. The second boost came in the early nineties with the broadcast of satellite television into Indian homes, first by programmers like CNN and Star TV, and a little later by domestic channels such as Zee TV and Sun TV. Soon, from the large metros satellite television delivered via cable moved into smaller towns, spurring the purchase of TV sets and even the upgrade from black and white to colour televisions.DD responded to this satellite television invasion by launching an entertainment and commercially driven channel and also by introducing entertainment programming on its terrestrial network. This again fuelled the purchase of television sets in the rural areas where cable television was not available.
The initial success of the channels had a magnifying effect: more foreign programmers and Indian entrepreneurs kick started their own versions. From two channels prior to 1991, Indian viewers were exposed to more than 50 channels by 1996. The TV has just got bigger. Going by the plans of various media houses, the next two years will see 700 channels from existing almost 350 channels many of which will be in the General Entertainment segment.
INDUSTRY OVERVIEW (GENERAL)
India today ranks among the top five economies of the world when assessed in terms of purchasing power parity. Adding to this outlook is the fact that the average Indian is showing a greater propensity to indulge and entertain himself. The Indian entertainment Industry is thriving on the current economic upswing and is currently estimated to be INR 222 billion. Propelled by innovation across its value chain and a series of enabling regulatory actions the entertainment industry is expected to grow annually at almost 18 percent to reach INR 588 billion by 2010.
The entertainment industry has been aided by the fact that India has been the second fastest growing economy in the world. In 2004 it grew by 8.2%. In terms of purchasing power parity it is already the fourth largest economy in the world. Major companies are of the opinion that it will become a key market in the years to come. As the Indian economy continues growing, the Indian middle class has also expanded significantly. Compared to the other nations, the 300 million strong Indian middle class allocates a higher percentage of its monthly expenditure on Entertainment. There is an increase in the direct consumer spends on entertainment and advertising revenues have also been on the rise. The entertainment industry is now at an inflection point. The earlier phase of growth has run its course. Now the industry is ready to enter a second stage of growth powered by the twin engines of
technology and an enabling regulatory environment. The increasing penetration of technology is a major force shaping the entertainment landscape today. It will completely revolutionize content delivery as well as the viewer ship experience. Due to the imminent impact of these and other technologies, the successful media and entertainment companies will be the ones that are prepared for their disruptive effects on their models and the industry structure. Due to its sheer size, television has been the main driver for Industries growth contributing 62% of the overall industries growth. With total revenues of INR 139 billion, television is the goliath of the entertainment industry. It is now ready to advance to the next stage of its evolution, grasping the opportunities presented by the digital age, which will completely change the home entertainment landscape. In the process it is expected to continue its rapid growth and reach INR 371billion by 2010. (Source CII-KPMG Report
Subscription revenues are projected to be the key growth driver for the Indian television industry over the next five years. Subscription revenues will increase both from the number of pay TV homes as well as increased subscription rates. The buoyancy of the Indian economy will drive the homes, both in rural and urban (second TV set homes) areas to buy televisions and subscribe for the pay services. New distribution platforms like DTH and IPTV will only increase the subscribe base and push up the subscription revenues.
India currently continues to have low 'advertising spend to GDP' ratios compared to other economies, underscoring the untapped potential. In 2004, the advertising spend for India stood at .50% of the GDP, up from 48% the previous year. This is expected to increase significantly due to the rising consumerism and growing interest from global brands attracted by this huge and expanding market.
The Indian Television Sector
The Indian television market consists of terrestrial broadcasting which is provided solely by the state-owned broadcaster, Doordarshan, and cable and satellite broadcasting, which is provided by Doordarshan as well as other Indian and foreign broadcasters. The Indian television market had more than 119 million television households at the end of fiscal 2004, making it the third largest television market in the world after the United States and China. Of these, about 50 million households were cable television households, which represent a penetration rate of approximately 42% of the total television households and approximately 25% of the total households in India. The percentage of households with televisions was approximately 60% in fiscal 2004. An estimated nine million television sets were sold in India in 2004. Of the 25 million households that bought television sets over the three fiscal years ended March 31, 2004, 19 million, or 77% were rural households. (Source: CII-KPMG Report) Structure of the Indian Television Broadcasting Industry: The Indian television broadcasting industry can be divided into two categories. Terrestrial broadcasting This is broadcast through transmitters and received by households through antennas. Prasar Bharati (Broadcasting Corporation of India) is the only terrestrial broadcaster in India and is owned by the Government of India. It operates several channels under the umbrella brand "Doordarshan". As the terrestrial broadcaster, all television households can potentially access Doordarshan. In addition to its national channels in Hindi and English, Doordarshan broadcasts several regional language channels that are broadcast in particular regions of the country. Cable and satellite broadcasting This is broadcast by uplink of the channel to a satellite, which then provides the downlink signal to a wide region. Ground-based cable distributors through dish antennas, amplifiers and decoders receive the downlink signal. The distribution of cable and satellite channels to households is then carried
out by cable. There are a large number of operators in India, consisting of MSOs, as well as LCOs who provide the "last mile" connection. In most areas, there is only one provider of the last mile connection. DTH DTH is currently offered in India by DishTV, which is a part of the Zee TV Group and DD Direct Plus, which is a part of Doordarshan. Recent press reports indicate that there will be other entrants into the DTH business in the near future, including a joint venture between the TATA group and Star TV. Revenue Streams The revenues of cable and satellite broadcasters generally consist of the following sources: _ Advertising; _ Subscription, including from international arrangements; and _ Content syndication Advertising Broadcasters earn revenues from advertising by selling time spots that are interspersed in the channel's regular programmes, sponsorships (including title sponsorships) and banners/crawlers that are displayed on a part of the television screen while regular programmes are broadcast. The television advertising market has grown over the last several years, particularly as the share of advertising on television relative to all media has grown. Revenues from Indian television advertising were about Rs. 49.00 billion in fiscal year 2005, which represented 47% of the total revenues from advertising on all kinds of media in India in that year of approximately Rs. 139.0 billion. The following chart shows the share of television advertising as compared to other forms of media advertising in India in fiscal 2004.
Subscription Broadcasters provide cable channels to cable operators either on a "free to air" basis or a pay basis. In the case of pay channels, the cable operators receive monthly fees from subscribers, which are shared with the broadcaster based on the number of subscribers declared by the cable operators. The Indian cable and satellite television market has also been characterized by relatively low subscription rates, or the monthly fees paid by subscribers, compared to other countries. In addition, there has been alleged underreporting of subscriber numbers by some operators. Average subscription rates in India for cable and satellite channels were approximately Rs. 150 pr subscriber per month in 2004. (Source: CII KPMG) Subscription revenues have grown in recent years due to expansion of the number of cable and satellite homes, as well as the development of pay channels. Broadcasters also earn revenue for the broadcast of their programming in other countries. This is done through various technologies, such as cable, DTH and terrestrial broadcast, through arrangements with broadcasters, cable operators and other industry participants. Typically, these are revenuesharing arrangements based on the total number of subscribers. Content Syndication Broadcasters also sell content from their libraries to other users, including other broadcasters and content producers India has a comparatively low proportion of advertising expenditures to GDP: At 0.5% in 2004, India continues to have one of the lowest 'Advertising spends to GDP' ratios amongst peer economies. This underscores the significant potential India has yet to achieve vis-à-vis advertising budgets. Increase in television advertising's share of total advertising revenue: The share of television advertising as a percentage of total advertising revenue grew steadily in the 1990s. Although it has remained relatively stable in recent years at around 41%, there may be potential for further
growth with increased consumerism and the continued entry of global brands in India. Increase in cable revenues: In addition to possible growth due to an increase in the number of cable and television homes, overall subscription revenues may grow as more channels become pay channels and if subscription rates increase. In addition, the share of subscription revenues allocated to broadcasters could increase with the implementation of the CAS, DTH and other new technologies, as well as regulatory or other measures that could potentially address the problem of under-reporting of subscribers.
REASONS FOR SELECTING THE PROJECT
Main reasons which led us to select this project are as follows: • Youth - The average Indian is getting younger and is showing a greater propensity to indulge and entertain themselves. • There is least brand loyalty seen in the segment and thus it is not very difficult for a new entertainment channel to sustain if the content is good. • Increasing trend of television ad revenue.
ENVIRONMENTAL SCANNING
• SWOT Analysis S- Strength W-Weakness O- Opportunity T-Threat • PEST Analysis P- Political E- Economical S- Social T- Technological
SWOT Analysis • Strength: • Cooperating facility that is a TV set is easily available and has become an indispensable fixture in all upper and middle class households, and is not uncommon even in poorer homes in urban slums and rural houselolds. • As stress is increasing in the life of people the demand for entertainment set to increase. • Weakness: • TV entertainment entertainment. is not as mobile as radio
• Restriction on foreign investment in our Company, limits our ability to raise capital outside India. • Threat: • Alternatives available for entertainment are increasing day by day. Radio is increasingly used by youth as a source of entertainment. Other emerging entertainment providers are multiplexes, Social networking sites, Gaming Zones, Malls etc.. Hindi General
• Increasing competition in the Entertainment Channel segment.
• Our business is subject to extensive regulation by the Government, and failure to comply with such regulations could have an adverse effect on our business.
•
The Indian cable television market suffers from the inherent limitation of under-reporting of pay channel subscription numbers by cable operators. Our pay channel revenues may suffer due to under— subscription numbers. • Our operations are subject to a degree of risk pertaining to technological breakdowns including our information technology based communication system, which may disrupt our operations. • Our operations are subject to hazards inherent to information technology based communication system which links our operations. In the case of a technological breakdown, the process of broad-casting the channels may be adversely affected. This may adversely affect our business and operations. • Misappropriation of our Intellectual Property Rights could harm our competitive position. • Opportunity: • The no of C&S (Cable and Satellite connected) homes are increasing and thus the market coverage is also increasing. • Television ad revenue size is also showing increasing trend.
PEST Analysis The acronym PEST is used to describe a framework for the analysis of these macro environmental factors. • Political Environment: General political atmosphere, particular political stability is very important for the successful and smooth operation of the business. It covers those factors which restrain or facilitate the business through the government action. It may include political atmosphere, political parties, government administration, political stability etc. Our business will also be influenced by the political changes. A change in the administration at the centre may also lead to changes in the policy regarding DTH services, IPTV (Internet Protocol Television).It may cause change in our policy also. Acceptance or rejection of any new technology pertaining to telecasting or distribution of channels also depends upon the ideology of the political party ruling at that time. • Economic Environment: The economic environment also affects our business. Demand for entertainment may not be affected due to recession. However our advertisement revenue may be adversely affected due to recession. • Social Environment: Social factors include demographic and cultural aspects of the external macro environment. These factors affect the customers’ need and the size of the potential market. • Technological Environment: One of the most important aspect of shaping people’s lives is technology. The organization which moves with latest technology can excel their growth. Every new technology is a force for creative
destruction. Moreover the innovating process always leads to an increase in the investment. Technological inventions are introduced for higher productivity, lower cost, and more revenue. Technology refers to sum total of the knowledge providing ways to do things. Organization must give constant consideration to the manner in which innovation may affect their product and internal operating efficiency. In TV channel also technological inventions of newer machineries are of quite importance. New technologies available for distribution of content like IPTV, DTH, GTPL etc. and newer technologies for TV sets does also affect the size of the potential market. For instance distribution of channels through DTH television will give better picture quality and thus more satisfied target market.
PROJECT AT A GLANCE
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Name Nature of the Industry Location Constitution Date of Incorporation TV Channel as a service Total cost of project Means of finance Payback Period Net Profit ratio Cash Profit ratio Current ratio Return on capital employed Interest Coverage ratio Ours Entertainment Pvt. Ltd. Media and Entertainment Industry Navarangpura , Ahmedabad Private Company 1st April , 2009
Feasibility Study
A good feasibility study is more than just a set of financial projections. Done properly, it becomes the market-driven strategic plan that is the road map for all the subsequent decisions. A good study addresses the question of what is most feasible and what should be to assure maximum success. Steps of Feasibility Study: 1. Market Survey: It helped us to have the survey of consumers; survey gave us the idea of the preference of the consumers. 2. Professors: All the faculty members helped us at every junction of this journey. 3. Organizations: By visiting TV channels like Doordarshan, ETV Gujarati, we got first hand information regarding some aspects of the organization. 4. Banks: Information regarding loans was sourced by consulting various banks.
LEGAL FEASIBILITY
• Laws • Policy guidelines for uplinking and downlinking • License procedure and forms • Formation Of Company
Following are some of the laws very relevant for our business:
The Cable Television Networks Act Almost everybody in the country is familiar with the cable television. It has been spreading its wings from the initial urban cities, right to the remote villages. There has been a haphazard mushrooming of cable television networks all over the country due to the availability of signals of foreign television networks via satellites. To check the screening of undesirable programmes and advertisements which are screened on these channels and to regulate the operation of the cable television networks in the country, so as to bring uniformity in their functioning, the Cable Television Networks (Regulation) Act was passed in both the Houses of the Parliament. The Broadcasting Bill, 1997 The Bill is to provide for an independent authority to be known as the Broadcasting Authority of India which is for the purpose of facilitating and regulating broadcasting services in India. The Indian Telegraph Act 1885 The Indian Telegraph Act 1885 came into force on 1st October,1885. "Telegraph" means any appliance, instrument, material or apparatus used or capable of use for transmission or reception of signs, signals, writing, images, and sounds or intelligence of any nature by wire, visual or other electro-magnetic emissions, Radio waves or Hertzian waves, galvanic, electric or magnetic means. The Indian Telegraphic Act, 1885 was an Act to amend the law relating to Telegraphs in India. The Copyright Act, 1957 "The importance of copyright was recognized after the invention of the printing press which enabled the reproduction of books in large quantity. The Indian Copyright Act was thus passed in 1914. But, during the last four decades, modern and advanced means of communications like broadcasting,
litho-photography, television, etc made inroads in the Indian economy. It necessitated the fulfillment of international obligations in the field of Copyright. A comprehensive legislation had to be introduced to completely revise the Copyright law. This was achieved by the introduction of a Copyright Bill, 1957 in the Parliament The Telecom Regulatory Authority of India (TRAI) formed under the TRAI Act 1997 is also a regulatory body for Broadcasting Industry.
Legal Guidelines laid down by information and broadcasting ministry of India for uplinking and downlinking of TV channels.
GUIDELINES FOR UPLINKING FROM INDIA
New Delhi Dated: December 2, 2005. PREAMBLE
Ministry of Information and Broadcasting, Government of India notified the “Guidelines for uplinking from India” in July 2000. This was followed by “Guidelines for Uplinking of News and Current Affairs TV Channels from India” in March 2003, which were amended in August 2003, “Guidelines for use of SNG/DSNGs” in May 2003 and addendum dated 1.4.2005 to the uplinking guidelines. The Government has, on 20th October 2005 further amended these guidelines. It has now been decided that all these guidelines should be consolidated into one set of guidelines and notified. Accordingly, in supercession of all previous guidelines, the Government hereby notifies the following consolidated uplinking guidelines. These shall come into effect from today the 2 nd December 2005 and would be applicable to existing channels as well.
GENERAL
The applicant seeking permission to set up an uplinking hub/ teleport or uplink a TV Channel or uplink facility by a News Agency should be a company registered in India under the Companies Act, 1956.
1. PERMISSION TELEPORTS. 1.1 FOR SETTING UP OF UPLINKING HUB/
Eligibility Criteria.
1.1.1 In the applicant company, the foreign equity holding including NRI/OCB/PIO should not exceed 49%.
1.1.2 The Company should have a minimum Net Worth as prescribed below: Item Teleport for single channel capacity Teleport for 6 channel capacity Teleport for 10 channel capacity Teleport for 15 channel capacity 1.2 Period of Permission. Required Net Worth Rs. 1.00 Crore Rs. 1.50 Crore Rs. 2.50 Crore Rs. 3.00 Crore
1.2.1 Permission shall be granted for a period of 10 years. 1.3 Fee.
1.3.1 The applicant will pay an amount of Rs. Ten thousands as processing fee. 1.3.2 After being held eligible, the applicant company shall pay a permission fee at the rate of Rs. Five Lakhs per teleport. 1.4 1.4.1 Special Conditions/ Obligations. The company shall uplink only those TV channels which are specifically approved or permitted by the Ministry of I&B for uplinking from India.
1.4.2 The company shall stop uplinking TV channels whenever permission/approval to such a channel is withdrawn by the Ministry of I&B. 1.4.3 The applicant company shall abide by the general terms and conditions laid down in Para 5 below.
2.
PERMISSION FOR UPLINKING A NON-NEWS & CURRENT AFFAIRS TV CHANNEL.
[Note: For the purpose of these guidelines, a non-News & Current Affairs TV channel means a channel which does not have any element of news & current Affairs in its programme content.] 2.1 Eligibility Criteria.
2.1.1 The applicant company, irrespective of its ownership, equity structure or management control, would be eligible to seek permission. 2.1.2 The Company should have a minimum Net Worth as prescribed below: Item Single TV channel For each additional TV channel 2.2 Period of Permission. Required Net Worth Rs. 1.50 Crore Rs. 1.00 Crore
2.2.1 Permission shall be granted for a period of 10 years. 2.3 Fee.
2.3.1 The applicant will pay an amount of Rs. Ten thousands as processing fee. 2.3.2 After being held eligible, the applicant company shall pay a permission fee at the rate of Rs. Five Lakhs per channel. 2.4 Special Conditions/ Obligations.
2.4.1 The applicant company shall obtain registration for each channel, in accordance with the procedure laid down under the Downlinking Guidelines notified by the Ministry of Information & Broadcasting separately. 2.4.2 The applicant company permitted to uplink shall operationalize the channel within a period of one year from the date the permission is granted by the Ministry of I&B; failing which the permission is liable to be withdrawn, after affording an opportunity of being heard. 2.4.3 The sports channels/sports rights management companies having TV broadcasting rights shall with immediate effect share their feed with
Prasar Bharati for national and international sporting events of national importance, held in India or aboard, for terrestrial transmission and DTH broadcasting (free-to-air) under the following conditions: i) The events of national importance shall be determined by the Ministry of Information & Broadcasting in consultation with Ministry of Sports & Youth Affairs, Prasar Bharati and the concerned sports channels/sports rights management companies. In case of cricket events, these shall include all matches featuring India and the semi-finals and finals of international competitions. The above conditions shall apply to all future events including those covered by existing contracts of broadcasting rights. However, in the case of cricket events whose broadcasting rights have been obtained by sports channels/right management companies prior to the issue of the notification in the matter the rights holders will be obliged to share the feed for all matches featuring India and finals of international competitions. Prasar Bharati shall transmit the feed, free to air, on its terrestrial channel and carried through the terrestrial network and/or the satellite/DTH mode. The marketing of the events’ rights (terrestrial as well as satellite/DTH) will be decided through mutual negotiations between Prasar Bharati and the rights holder. The marketing rights should go to the party which offers to maximize the revenue. Revenue sharing formula of 75:25 in favour of rights holders without any minimum guarantee/opportunity cost, should be applied.
ii)
iii)
iv)
v)
In the event of any dispute, the matter shall be referred to an arbitrator to be appointed by Secretary, Ministry of Law and Justice out of the approved panel of arbitrators.
2.4.4 The applicant company shall abide by the general terms and conditions laid down in Para 5 below.
POLICY GUIDELINES FOR DOWNLIKING OF TELEVISION CHANNELS
Ministry of Information and Broadcasting, Government of India, has formulated policy guidelines for downlinking all satellite television channels downlinked / received / transmitted and re-transmitted in India for public viewing. Consequently, no person/entity shall downlink a channel, which has not been registered by the Ministry of Information and Broadcasting under these guidelines. Henceforth, all persons/ entities providing Television Satellite Broadcasting Services (TV Channels) uplinked from other countries to viewers in India as well as any entity desirous of providing such a Television Satellite Broadcasting Service (TV Channel), receivable in India for public viewership, shall be required to obtain permission from Ministry of Information and Broadcasting, in accordance with the terms and conditions prescribed under these guidelines.
The guidelines are as given below: 1. 1.1 ELIGIBILITY CRITERIA FOR APPLICANT COMPANIES The entity applying for permission for downlinking a channel,
uplinked from abroad, (i.e. Applicant Company), must be a company registered in India under the Indian Companies Act, 1956, irrespective of its equity structure, foreign ownership or management control.
1.2
The applicant company must have a commercial presence in India
with its principal place of business in India. 1.3 The applicant company must either own the channel it wants
downlinked for public viewing, or must enjoy, for the territory of India, exclusive marketing/ distribution rights for the same, inclusive of the rights to the advertising and subscription revenues for the channel and must submit adequate proof at the time of application. 1.4 In case the applicant company has exclusive marketing / distribution rights, it should also have the authority to conclude contracts on behalf of the channel for advertisements, subscription and programme content. 1.5 The applicant company should have a minimum net worth as
prescribed below: Item 1. For downlinking one Channel 2. Every Additional Channel 1.6 Required net worth of the Co. Rs 1.50 Crores Rs.1.00 Crores
The applicant company must provide names and details of all the
Directors of the Company and key executives such as CEO, CFO and Head of Marketing etc to get their national security clearance. 1.7 The applicant company shall furnish, technical details such as
Nomenclature, make, model, name and address of the manufacturers of the equipments/instruments to be used for downlinking and distribution, the Block schematic diagram of the downlinking and distribution system and
also demonstrate the facilities for monitoring and storing record for 90 days.
1.8 The Applicant Company should not have been disqualified from holding such permission under these guidelines.
2.
ELIGIBILITY
CRITERIA
FOR
REGISTRATION
OF
CHANNELS FOR BEING DOWNLINKED 2.1 Only Companies permitted/eligible for permission to downlink, as per
Clause 1 above, shall be eligible to apply for registration of channels. 2.2 The downlinked channel must be licensed or permitted for being regulatory or licensing authority of the country of
broadcast by the application. 2.3
transmission, proof of which would have to be submitted at the time of
The channel being registered should not have been de registered under
these guidelines at the time of application. 2.4 No News and Current Affairs channel shall be permitted to be
downlinked if it does not meet the following additional conditions: 2.4.1 That it does not carry any advertisements aimed at Indian viewers; 2.4.2 That it is not designed specifically for Indian audiences; 2.4.3 That it is a standard international channel;
2.4.4 That it has been permitted to be telecast in the country of its uplinking by the regulatory authority of that country; Provided that the Government may waive/modify the condition under clause 2.4.1 on a case-by-case basis. 2.5 For the purposes of these guidelines any channel, which has any
element of news or current affairs in its programme content, will be deemed to be a news and current affairs channel. 2.6 Companies whose channels are being downlinked at present will be
required to comply with all formalities of registration of these channels within 180 days from date of issue of these guidelines. In addition these companies will be required to obtain the necessary permission for downlinking their respective channels under these guidelines within 180 days from date of issue of these guidelines. 3. PERIOD OF REGISTRATION AND PERMISSION
The Ministry of Information and Broadcasting shall grant registration to each channel for an initial period of 5 years, which shall be extendable thereafter as per extant Rules. The applicant company will be granted permission for one or more years up to a maximum of five years, coterminus with the registration of the channel. 4. 4.1 REGISTRATION FEE AND PERMISSION FEE The Applicant Company shall pay registration fee of Rs.5 Lakhs for
each channel, which will be payable for the initial registration for a period of
five years. Extension beyond five years shall be again for a period of five years at the above prescribed rate. 4.2 Every company permitted to downlink channels, uplinked from other
countries, into India under these guidelines, shall pay Rs 5 Lakhs as the initial fee before the signing of the Grant of Permission Agreement. In addition, every company shall pay an amount of Rs. 1 lakh per channel per annum as the annual fee. 4.3 The company permitted to downlink channels into India under the
uplinking guidelines, shall register every channel separately. 5. 5.1 BASIC CONDITIONS/OBLIGATIONS The Company permitted to downlink registered channels shall comply
with the Programme and Advertising Code prescribed under the Cable Television Networks (Regulation) Act, 1995. 5.2. The sports channels/sports rights management companies having TV broadcasting rights shall with immediate effect share their feed with Prasar Bharati for national and international sporting events of national importance, held in India or abroad, for terrestrial transmission and DTH broadcasting (free-to-air) under the following conditions: 5.2.1 The events of national importance shall be determined by the
Ministry of Information & Broadcasting in consultation with Ministry of Sports & Youth Affairs, Prasar Bharati and the concerned sports channels/sports rights management companies. In case of cricket events,
these shall include all matches featuring India and the finals and semi-finals of international competitions. 5.2.2 The above conditions shall apply to all future events including
those covered by existing contracts of broadcasting rights. However, in the case of cricket events whose broadcasting rights have been obtained by sports channels/rights management companies prior to the issue of the notification in the matter, the rights holders will be obliged to share the feed for all matches featuring India and finals of international competitions. 5.2.3 mode. 5.2.4 The marketing of the events’ rights (terrestrial as well as Prasar Bharati shall transmit the feed, free to air, on its terrestrial
channel and carried through the terrestrial network and/or the satellite/DTH
satellite/DTH) will be decided through mutual negotiations between Prasar Bharati and the rights holder. The marketing rights should go to the party, which offers to maximize the revenue. 5.2.5 Revenue sharing formula of 75:25 in favour of rights holders without any minimum guarantee/opportunity cost should be applied. In the event of any dispute, the matter shall be referred to an arbitrator to be appointed by Secretary, Ministry of Law & Justice out of the approved panel of arbitrators. 5.3 The applicant company shall adhere to any other Code/Standards guidelines/restrictions prescribed by Ministry of Information &
Broadcasting, Government of India for regulation of content on TV channels from time to time. 5.4 The applicant company shall submit audited annual accounts of its
commercial operations in India. 5.5 The applicant company shall obtain prior approval of the Ministry of I
& B before undertaking any upgradation, expansion or any other changes in the downlinking and distribution system/network configuration. 5.6 The applicant company shall providesatellite TV channel signal
reception decoders only to MSOs/Cable operatorregistered under the Cable Television Networks (Regulation) Act 1995 or to a DTHoperator registered under the DTH guidelines issued by Government of India or toan Internet Protocol Television (IPTV) Service Provider duly permitted undertheir existing telecom license or authorized by Department of Telecom to providesuch service. 5.7 The applicant company shall ensure that any of its channels, which is
unregistered or prohibited from being telecast or transmitted or retransmitted in India, under the Cable Television Networks (Regulation) Act 1995 or the DTH guidelines or any other law for the time being in force, cannot be received in India through encryption or any other means. 5.8 The Union Government shall have the right to suspend the permission
of the company/registration of the channel for a specified period in public interest or in the interest of National security to prevent the misuse of the channel. The company shall immediately comply with any directives issued in this regard.
5.9
The applicant company seeking permission to downlink a channel
shall operationalise the channels within one year from the date of the permission being granted by the Ministry of I&B, failing which the permission will liable to be withdrawn without any notice in this regard. However, the company shall be afforded a reasonable opportunity of being heard before such a withdrawal. 5.10 The company/channel shall adhere to the norms, rules and regulations prescribed by any regulatory authority set up to regulate and monitor the Broadcast Services in the country. 5.11 The applicant company shall give intimation to Ministry of I & B regarding change in the directorship, key executives or foreign direct investment in the company, within 15 days of such a change taking place. It shall also obtain security clearance for such changes in its directors and key executives. 5.12 The applicant company shall keep a record of programmes
downlinked for a period of 90 days and to produce the same before any agency of the Government as and when required. 5.13 The applicant company shall furnish such information as may be required by the Ministry of I&B from time to time. 5.14 The applicant company shall provide the necessary monitoring facility at its own cost for monitoring of programmes or content by the representative of the Ministry of I&B or any other Government agency as and when required.
5.15
The applicant company shall comply with the obligations and
conditions prescribed in the downlinking guidelines issued by the Ministry of I&B, and the specific downlinking permission agreement and registration of each channel. 5.16 In the event of any war, calamity/national security concerns, the
Government shall have the power to prohibit for a specified period the downlinking/ reception/ transmission and re-transmission of any or all channels. The Company shall immediately comply with any such directions issued in this regard. 6.OFFENCES AND PENALTIES 6.1 In the event of a channel found to have been/being used for transmitting any objectionable unauthorized content, messages, or communication inconsistent with public interest or national security or failing to comply with the directions as per Para 5.8 or Para 5.16, the permission granted shall be revoked and the company shall be disqualified to hold any such permission for a period of five years, apart from liability for punishment under other applicable laws. Further, the registration of the channel shall be revoked and the channel shall be disqualified from being considered for fresh registration for a period of five years. 6.2 Subject to the provisions contained in Para 6.1 of these guidelines, in
the event of a permission holder and/ or channel violating any of the terms and conditions of permission, or any other provisions of the guidelines, the Ministry of Information and Broadcasting shall have the right to impose the following penalties: -
6.2.1
In the event of first violation, suspension of the permission of the
company and/or registration of the channel and prohibition of broadcast up to a period of 30 days. 6.2.2 In the event of second violation, suspension of the permission of the company and/or registration of the channel and prohibition of broadcast up to a period of 90 days 6.2.3 In the event of third violation, revocation of the permission of the
company and/or registration of the channel and prohibition of broadcast up to the remaining period of permission 6.2.4 In the event of failure of the permission holder to comply with the
penalties imposed within the prescribed time, revocation of permission and /or registration and prohibition to broadcast for the remaining period of the permission and disqualification to hold any fresh permission and /or registration in future for a period of five years. 6.2.5 In the event of suspension of permission as mentioned in Para
5.8,5.16 or 6.2, the permission holder will continue to discharge its obligations under the Grant of Permission Agreement including the payment of fee. 6.2.6 In the event of revocation of permission and /or registration, the fees paid will be forfeited. 6.2.7 All the penalties mentioned above shall be imposed only after giving
written notice to the permission holder. 7. DISPUTE RESOLUTION
7.1
In the event of any question, dispute or difference arising under the
Grant of Permission Agreement or in connection thereof, except as to the matter, the decision of which is specifically provided under the Grant of Permission Agreement, the same shall be referred to the sole arbitration of the Secretary, Department of Legal Affairs or his nominee. 7.2 There will be no objection to any such appointment that the Arbitrator
is a Government servant. The award of the arbitrator shall be final and binding on the parties. In the event of such Arbitrator, to whom the matter is originally referred to, being transferred or vacating his office, or being unable to act for any reason whatsoever, Secretary, Department of Legal Affairs shall appoint another person to act as Arbitrator. 7.3 The Arbitration and Conciliation Act, 1996, the rules made there
under and any modification thereof, for the time being in force, shall be deemed to apply to the arbitration proceedings as above. The venue of arbitration shall be New Delhi or such other place as the Arbitrator may decide. The arbitration proceedings shall be conducted in English language. 7.4 Upon any and every reference as aforesaid, the assessment of costs,
interest and incidental expenses in the proceedings for the award shall be at the discretion of the Arbitrator.
8.
PROCEDURE
FOR
GRANT
OF
PERMISSION
AND
REGISTRATION OF CHANNELS 8.1 The applicant company shall apply to the Secretary, Ministry of
Information and Broadcasting in the prescribed Performa along with full details and documentation relevant for evaluating its eligibility for grant of permission to downlink TV channels in India. Each application form shall be accompanied by a demand draft of Rs. Ten Thousand towards nonrefundable processing fee. 8.2 The applicant company shall also submit full details of each channel
being/proposed to be downlinked along with all other documents as prescribed in the guidelines. 8.3 After scrutiny of the application if the applicant company is found
eligible, the same will be sent for security clearance to the Ministry of Home Affairs. In the meanwhile, the Ministry of Information and Broadcasting will evaluate the suitability of the proposed channel for downlinking into India for public viewing. 8.4 In the event of the applicant company and the proposed channel being
found suitable, the Ministry of Information and Broadcasting will register the channel and the applicant company to enter into a grant of permission agreement with the Ministry of Information and Broadcasting, Government of India. 8.5 On receipt of the signed agreement, the Ministry of Information and
Broadcasting will issue a registration certificate for the concerned channels
and grant permission to the applicant company to downlink the relevant channels in India for the prescribed period. 8.6 On receipt of the permission and upon registration of the channel, the applicant company will be entitled to approach the MSOs/Cable head end operators/DTH Operators for receiving/downlinking its channel’s signal, for further transmission/retransmission/ distribution.
FORMATION OF COMPANY
LEGAL DOCUMENTATION FOR PRIVATE LIMITED COMPANY A) Memorandum of association. B) Articles of association. C) Certificate of incorporation of company. A) Memorandum of association of OURS ENTERTAINMENT Pvt. Ltd. (Limited by shares, as per section 15 of the companies act, 1956) (1) The name of the company is OURS ENTERTAINMENT Pvt. Ltd (2) The registered office of the company is situated in the state of Gujarat. (3) The objective of the company (a) Main object: (b) Other objects: - To enter into joint sector arrangement with any person, body or corporate whether in India or abroad for the business of the company. - To trained and get trained and or pay training for the employees, both present and future, for and in connection with business of the company. - To undertaken and execute any contacts for works for the business of the company. (4) Capital Clauses: The share capital of company is Rs.39624365 divided into shares of Rs.10 each. (5) Liability Clause: The liability of the members is limited. (6) Association Clause: We, the several persons, whose names and addresses are Subscribed, are desirous of being formed to companies in Pursuance of this memorandum of association, and we
Respectively agree to take the number of shares in the capital Of the companies set opposite our respective names. NAME OF NO. OF SIGNATURE SUBSCRIBERS SHARES Gayatridevi V. Darbar 396244 Vaishali R. Jalandhara 396243 Madhuri N. Parmar 396244 Shruti G. Parmar 396243 Keta I. Patel 396244 Riti J. Ahir 396243 Kinjal M. Gohil 396244 Foram P. Katara 396243 Pinal S. Mesurani 396244 Kinjal N. Panchal 396243 Date : of 2009 Witness : Name : Signature: (B) Articles of association of OURS ENTERTAINMENT Pvt. Ltd 1. OURS ENTERTAINMENT Pvt. Ltd. Will follow the regulations Contained in TABLE ‘A’ in the first schedule of the Companies act, 1956. 2. No invitation shall be issued to subscribe for any shares in or Debentures of the companies. 3. Prohibited from making any invitation for or acceptance of deposits from persons other than its member, directory or their relatives. 4. We, the several persons, whose names are subscribed, are desirous of being formed into a company in pursuance of these article of association and we respectively agree to take number of shares in the capital of the company.
NAME OF NO. OF SIGNATURE SUBSCRIBERS SHARES Gayatridevi V. Darbar 396244 Vaishali R. Jalandhara 396243 Madhuri N. Parmar 396244 Shruti G. Parmar 396243 Keta I. Patel 396244 Riti J. Ahir 396243 Kinjal M. Gohil 396244 Foram P. Katara 396243 Pinal S. Mesurani 396244 Kinjal N. Panchal (C) Certificate of incorporation of OURS ENTERTAINMENT PRIVATE LIMITED CERTIFICATE OF INCORPORATION NO. U000GJ2004PTC09586 I, here, by certifying that OURS ENTERTAINMENT Pvt. Ltd is incorporated under the companies act ,1956 (No. 10 of 1956) and the company is a private limited. Given under my hand at Ahmedabad this first day of April,2009. SD/Name Asst. Registrar of Companies, Seal of Registrar of companies, Gujarat.
REASONS FOR SELECTING A PRIVATE COMPANY 1. No. of members:A private company can be formed with presence of only two members. 2. Allotment before minimum subscription:A private company can allot shares before the minimum is Subscribed for or paid. 3. Option to issue prospectus:A private company may allot shares without issuing a prospectus or delivering to the registrar a statement in lieu of prospectus. 4. Issue of new shares:When a public company issues new shares, after the expiry of 2 years from its formation or at any time after the expiry of one year from the date of 1st allotment of shares, whichever is earlier. A private company has first to offer these shares to the existing equity share holders on the basis of Pro-rata. There is no such provision in case of private companies. 5. Kind of shares:A private company may issue share capital of any kind and with such voting rights, as it may think fit. 6. Commencement of business:A private company can commence business immediately on incorporation. 7. Index of members:A private company need not keep index of members. 8. Statutory meeting & Statutory report:A private company need not hold statutory meeting or filed with the registrar the statutory report.
9. Demand for poll:Even one member having the right to vote and present in person or by proxy ( if not more than 7 such members are personally present) may demand for poll. If the number of members present is more than 7, two members present in person or by proxy may demand poll. 10. Managerial remuneration:The rule of overall maximum managerial remuneration doesn’t apply to a private company, which is not a subsidiary of a public company; the overall managerial remuneration must not exceed 11% of the net profit 11. Number of directors:A private company can have minimum two directors.
TECHNICAL FEASIBILITY
• What is Technical Feasibility? • Technical Facilities • Furniture And Miscellaneous Assets • Requirement of Utilities • Location Analysis • Plant Layout
WHAT IS TECHNICAL FEASIBILITY ?
Technical feasibility study of any project is generally based on the nature and the size of the project. This phase of feasibility study includes – requirement of plant, machineries and equipments, utilities, miscellaneous fixed assets, building and interior design work etc.
TECHNICAL FACILITY
• Uplinking and Playout Facility We do not have our own earth station for telecasting or programs. Hence we have outsourced uplinking and playout to Doordarshan Kendra Ahmedabad. For this facility we are paying Rs. 60,00,000 per annum. • Transponder We have hired transponder from Antrix Corporation. For this charges payable are Rs.1,44,00,000 per annum.
REQUIREMENT OF UTILITIES
• Electricity: We have electricity connection from Torrent Power. For this we have paid Rs. 4000 as deposit. • Communication: o Telephone and fax: To communicate with the production houses , sponsors and advertisers we have taken 1 telephone connections from BSNL and have paid Rs. 1000 as deposit. o Intercom system: For any organization internal communication is equally important as the external is. We will provide intercom facility to the receptionist, director, all departmental heads and to the security guard. The cost of getting in connected with the base is Rs. 10000. • Miscellaneous fixed assets:
FURNITURE & FIXTURE
Particulars Sofa set Conference Table Table Glass Wooden Table Plastic Table Chair - revolving - plastic Light board Wall Clock Notice board Suggestion box Fans AC Tube light Water Cooler Miscellaneous fixture Total Quantity 3 1 1 26 8 20 Price 10,000 10,000 1,500 4,000 500 2,200 Total 30,000 10,000 1,500 1,04,000 4,000 44,000
20 16 1 1 35 15 40 2 -
300 200 200 100 1,000 20,000 300 15,000 -
6,000 3,200 200 100 35,000 3,00,000 12,000 30,000 50,000 6,30,000
MISCELLANEOUS ASSETS
Particulars Laptop Computer TV DVD Quantity 22 4 10 2 Price 32,999 20,000 14,990 2,000 Total 7,25,978 80,000 1,49,990 4,000
Invertors
Printer Fax Machine Projector Fire Fighting Equipment Total
1
1 2 1 1
20,000
8,200 4,000 8,000 5,000
20,000
8,200 8,000 8,000 5,000 10,09,168
LOCATION ANALYSIS
Introduction: The location of the unit is very important aspect in economic analysis of any project as it plays vital role in continuing life of the organization to have future advantages. Location of the unit means a specific site in the region where the organization is to be started. For selecting the location all the pertinent factors influencing the location have to be considered and weighted out very carefully. Location of Office: Kalpana Society Behind Ganesh Plaza Navrangpura .
Ahmedabad - 380009
We have selected this location because of following reasons: • We have outsourced uplinking and playout to Doordarshan Kendra Ahmedabad. Hence our this location has proximity to uplink station and saves cost of transportation. • Commuting facilities are easily available at this place. Hence it will be easy to our employees as well as clients. • Gujarat is also an upcoming hub for film shooting.
HUMAN RESOURCE FEASIBILITY
• Organization Chart • Job Profile • Employee Welfare and retention
ORGANISATION CHART
CEO & M.D.
HR MANAGER
FINANCE MANAGER
PROGRAMMING MANAGER
MARKETING MANAGER
DISTRIBUTION MANAGER
LEGAL HEAD
IT HEAD
ACCOUNTANT
CREATIVE MANAGER
EXECUTIVE PRODUCE R
TAPE LIBRARIAN
AD SALES MANAGER
ADVERTI SING MANAGER
DISTRIBU TION EXECUTI VE
JOB DESCRIPTION & JOB SPECIFICATION
• Chief Executive Officer and Managing Director: JOB SPECIFICATION Job Title : CEO and M.D. Education Qualification : M.B.A., Ph.D. from respective field Mental & Special Ability : Good presence of mind, calm, personality, stable, alert, leadership and communication skills Deep knowledge about the broadcasting and Media Industry. Work Experience: 5-6 year experience in similar profile JOB DESCRIPTION Reports to Supervises Functions : Shareholders : All the employees of the organization :
? To handle all the important matters related to the TV channel. ? To pay intensive attention to the activities taking place in the company. ? To participate actively in formulating the plans and strategies and sanction the same. ? Evaluate the performance of the company and take necessary steps accordingly. ? To maintain harmony in the organization.
• Head of programming department: Job specification: Job title Educational Qualification Mental & Special ability Work experience Job description: Reports to : CEO Supervises to : Executive producer Functions : - acquisition of programs - Constant touch with production houses - scheduling of programs - checking and verifying contents of program - Roping in the best talent in the industry costing. - Conceptualization of programs. - Bringing innovative ideas for programs. - Audience and market research study analysis. - Supervising executive producer and creative supervisor. - Negotiating with the producers regarding budget. : Programming Head : B.J.S., M.J.S., M.B.A. (Marketing) : creative, innovative, spontaneous : experience of 4 to 5 years in similar profile preferred
• Creative Supervisor Job Specification: Job Title : Creative Supervisor Educational Qualification : M.B.A. with Marketing Mental & Special ability : Creative, should have knowledge of Media Industry Should be Polite, Co-operative, Good Presence of mind, Dynamic. Work experience: 2-3 years in respective field. Job Description: Reports to : Programming head. Supervises to : Production houses. Functions : - Supervising the creative aspects of show as casting, set designing, costumes etc. - Constant touch with production house. - Giving suggestion to production house and programming head. • Executive Producer Job Specification: Job title : Executive Producer. Educational Qualification : Diploma in Dramatics Mental & Special ability : Alert, Smart. Work experience: 2-3 years in similar profile preferred.
Job Description: Reports to Supervises Functions: : Programming head. : Producers - Constant touch with production house. - Selection of the produces for production of programs. - Ensuring that the tapes reach on time from production house. - Estimation of the budget and presentation to finance requirement. - Ensure that weekly television program details are provided to newspaper and magazine. • Ad sales Manager Job Specification: Job title Education Qualification : Ad sales Manager.
: MBA (Marketing), Diploma in Advertising. Mental & Special ability : Pleasant Personality, Calm, Co-operative, Sharp, Good presence of mind, Good Convincing power. Work experience: 2-3 years of experience in respective field. Job Description: Reports to : Marketing head. Supervises : Functions : - Prepare proposals to attract the advertisers. - Negotiation with the Ad agencies.
- Fixation of Ad rates and classification of slots. - Bringing the sponsor for the programs. - Finalizing the Ads and placing of the Ads. - Building client confident. • Advertising Manager Job Specification: Job title : Advertising Manager. Education Qualification : M.B.A. (Advertising) Mental & Special ability : Creative, Pleasant Personality, Calm, Co-operative, Sharp, Good presence of Mind, Good convincing power. Work experience: 2 to 4 years of experience in respective Department preferred. Job description: Reports to Supervises Functions : Marketing head. : : - Working for the brand in market. - Allocating the budget to different media to Maximize reach. - Audience and market research study and analysis. - Evaluate the campaign spent and see which format of media worked. - Remain in touch with Ad agencies. - Negotiation with the Ad agencies.
• Marketing Manager Job Specification:
Job title : Marketing Manager. Education Qualification : MBA (Marketing). Mental & Special ability : Creative, Good communication skills, Dynamic. Work experience : 4 to 5 years of experience in respective Field is preferred. Job Description: Reports to Supervises : CEO : Ad sales manager, Advertising Manager. Functions : - Fixing up of budget for advertising. - Audience and market research study and analysis. - Supervising Ad sales manager and Advertising manager. - Finalizing allocation of advertising budget to different media - Working for brand positioning. • Legal Advisor Job Specification: Job title Education Qualification Mental & Special ability Work experience Job Description: Reports to Supervises : CEO : : Legal Advisor. : L.L.M. : Sharp, Alert : 2-3 years preferred.
Functions
: - See that the program content adheres to advertising and program code given by I and B ministry. - See that the necessary legal procedure are complied with. - Co-operate with respective legal authorities. - Ensure that the necessary monitoring facilities are provided to the authorities by the up-link service provider.
• Finance Manager: JOB SPECIFICATION Job Title : Finance Manager Education : M.B.A. (Finance) Mental & Special Ability : Should be well versed with numbers, should be skilled in the analysis of data Special Ability : Should be skilled in the application of various tools of financial management Work Experience : preferably one year of experience in similar profile. JOB DESCRIPTION Reports to Supervises Functions : Director : Accountant : • To determine optimal capital structure and work towards its attainment. • To handle all the financial affairs of the TV channel • Take care of the finance during events
• To negotiate marketing budget and the budget of other departments. • To analyze financial performance of the business by analyzing financial statements.
• Accountant:
JOB SPECIFICATION Job Title : Accountant Education : M. Com. Mental & Special Ability : Good with numbers, Familiarity with various accounting standards and concepts Special Ability : Good command over various accounting softwares and programmes like Tally Work Experience : Not required
JOB DESCRIPTION Reports to Supervises Functions : Finance Manager, Director : :
• To record financial transactions daily • To remain in touch with finance manager • To prepare financial statements like profit and loss and balance sheets and arrive at various ratios.
• H.R. Manager:
JOB SPECIFICATION Job Title : Personnel Manager Education : M.B.A. (H.R.) Mental & Special Ability : good communication skills, negotiating skills Special Ability :interpersonal skills, counselling skills, emotional stability Work Experience : preferably one year experience in similar profile JOB DESCRIPTION Reports to Supervises Functions : Director : trainees : • Manpower Planning • Recruitment • Selection
• Training • Performance Appraisal • Handling Grievances
• Distribution Head:
JOB SPECIFICATION Job Title
istribution Head Education :Graduate in any discipline Mental & Special Ability :should be alert and stable Special Ability :good motivational skills and negotiating skills Work Experience : 2-3 years experience in similar profile JOB DESCRIPTION Reports to Supervises Functions :CEO istribution Executives :? Select MSO networks and DTH service providers for distribution of TV channel.
? Negotiating with the distribution intermediaries regarding the subscription revenue sharing. ? Signing of formal agreements with DTH operators , MSOs, LCOs , for distribution of channel. ? Ensure that decoders are available to the distributors. ? Ensure that intermediaries in distribution make correct reporting regarding the no of subscribers. ? Check that the agreed MSOs, LCOs or DTH service providers are registered.
• Distribution Executive: JOB SPECIFICATION Job Title
istribution Head Education :Graduate in any discipline Mental & Special Ability :should be alert and stable Special Ability :good motivational skills and negotiating skills Work Experience : 2-3 years experience in similar profile JOB DESCRIPTION Reports to Supervises Functions :CEO and Distribution Head : :? Collection of subscription charges from distribution intermediaries.
? Ensuring that customers are receiving the channel. ? Ensure that the intermediaries provide uninterrupted service to the customers. ? Make the decoders available to the intermediaries. ? Check that under reporting of the number of subscribers do not take place.
• I.T. Head : JOB SPECIFICATION Job Title :I.T. Head Education :B.Sc.(I.T.) or B.E.(I.T.) Mental & Special Ability :should be alert and stable Special Ability : Work Experience : not required JOB DESCRIPTION Reports to Supervises Functions :CEO : :
• Write the updates of programs after getting details of content.
• Update and maintain the website • Forward the details of the feedback and suggestion forum to the relevant department. • Tape Librarian Job specification: Job title : Tape Librarian. Educational Qualification : Diploma in library-science. Mental & Special ability : Good memory status, Alert, Co-operative. Work experience : Not required. Job Description: Reports to Supervises Functions : Programming head. : : - Filing and storing of all program tape, commercial tape from advertises, Programming department. - Receiving the transmission schedule to the programming department. - Issue of tapes on request of producers. - maintaining all the records properly. - Ensuring that the necessary tapes reach on time for up-linking as per the transmission schedule.
• Receptionist: JOB SPECIFICATION Job Title Education Mental & Special Ability : Receptionist : Graduate in any discipline :Good presence of mind and calm personality, good command over languages, good communication skill Work Experience : Not required JOB DESCRIPTION Reports to Supervises Functions : All concerned persons : Peons, Sweepers : • To adjust appointment of various authorities • To conduct the visits and appointments • To receive the phone calls and transfer it to concerned Departments • Peon: JOB SPECIFICATION Job Title Education Mental Ability : Peon : S.S.C. : Mentally stable and grasp the things quickly
Special Ability :well behaved and should be honest Work Experience :Not required JOB DESCRIPTION Reports to Supervises Functions • • • • :Receptionist and all concerned persons :None : To follow the orders of the seniors. To keep the office and premises clean To do all the miscellaneous works. To be punctual and particular about the work.
MANPOWER DETAILS
Designation
CEO Program Head Executive Producer Creative Supervisor Marketing Head Ad sales Manager Advertiser Manager Finance Manager Accountant HR Manager IT Legal Advisor Tape Librarian Distribution Head Distribution Executive Peon Receptionist Security Guard
No. of employees
1 1 5 5 1 10 2 1 2 1 1 1 1 1 4 5 1 1
EMPLOYEE WELFARE AND RETENTION
Employee welfare and Retention is very crucial affair for any organization. It is very important to play close attention towards the problems of the employees working in the organization. As ours is a service providing organization employees are valuable assets of our organization. Following policies will be framed in our organization: • Employee of the year award • Casual Leave – 7 days per annum • Sick Leave – 7 days per annum
• • • •
Bonus – 1 month salary Birthday celebration Gripe Box Special Leave - Special leaves will be given to employees. 3 leaves will be given which have to be devoted for social service which will give satisfaction to employees.
MARKETING FEASIBILITY
.
• 7 P’s of Marketing • Market Research • Findings and Conclusions
MARKETING FEASIBILITY
According to Philip Kotler ‘Marketing is meeting needs profitably.’ We need to fulfil the needs of the target market by our product and also earn profit.
7 P’s OF MARKETING
PRICE
PROCESS
PLACE
7’ps
PHYSICAL EVIDENCE
Of Marketing
PROMOTION
PEOPLE
PRODUCT
With increasing alternatives of entertainment being available to the people and increasing competition in the general entertainment channel market we
need to develop a marketing strategy that differentiates us from competitors. This marketing strategy includes different elements. The marketing mix is a set of marketing tools that the firm uses it to pursue its marketing objectives in the target market. Our feasibility report deals with service. Service marketing mix consists of following 7 P’s of marketing. I. II. III. IV. V. VI. VII. Product Price Place Promotion People Physical Evidence Process
The so-called marketing mix is a framework that acts as a guideline for marketers to implement a marketing concept. It consists of a set of major decision areas that a company needs to manage in order to satisfy consumer’s needs.
1. Product: Product:
Product means a good commodity, which carries a satisfaction with itself that a consumer is willing to accept. A good product offers a bundle of tangible and intangible attribute to satisfy consumers. However in service there is no or only a little tangible element because if which they are considered as benefits, which are offered to the target market. Name : OURS Logo :
Tagline : “Happy Hours with Ours.” Here we classify our product as Entertainment TV Channel.
Features : ? 24*7 programmes ? Healthy entertainment programmes
? Innovative programmes ? Comparatively lesser ad-breaks Products Levels : There are five different product levels, each of which represents a customer’s value hierarchy. These product levels can be understood as follows: Core Benefit: Core benefit is a fundamental service or benefits that a customer is really buying. The core benefit of an Entertainment Channel is to provide entertainment. Basic Product: Basic product is one of the alternatives to satisfy the core needs. It includes the basic as well as functional attributes of a service. The Here the basic product is a set of entertainment programmes like drama, reality shows, comedy programs etc. Expected Product:Expected product is a set of attributes and conditions that buyers normally expect when they purchase a product or service. Here healthy entertainment programmes and uninterrupted telecast is the expected product. Augmented Product: Augmented product consists of those services that meet the customers’ desires beyond expectations. Here organizing contests Potential Product: It consist of all possible augmentations that a product or service might undergo in future.
2.Price
The second P of marketing mix is Price. Price means amount of money charged for a particular product or services. Price has operated as major influencing factor of buyer’s choice even. This behaviour prevails not only in underdeveloped or developing countries but also in developed countries. We have decided our channel subscription charges as follows: For both non CAS and CAS notified areas and DTH – Rs. 5 per month We are following the going rate pricing method because we have set our price by taking into consideration competitors price. But we have fixed the price less than that of competitors as we are new entrant. Our TV channel will be Free To Air for first six months. Our Ad Rates are as follows:
AD RATE
Time Slot 8 pm to 10 pm 10 pm to 11 pm 11 pm to 12 am 12 am to 6 am 6 am to 11 am 11 am to 1 pm 1 pm to 2 pm 2 pm to 5 pm 5 pm to 8 pm Rate(in Rs.) per 10 Second 20,000 18,000 10,000 100 500 800 8,000 2,000 2,000
In one hour there will be 12 minutes of non programming material out of which 6 minutes will be devoted to advertisement and remaining will be devoted to promos of channel programs. Rates for space selling - Rs.20000 per hour.
3. Place Place means the company activities that make the different products or services available to the target customers. Location of Office: Kalpana Society Behind Ganesh Plaza
Navrangpura . We have selected this site because of following reasons: 1.We have outsourced uplinking and playout to Doordarshan Kendra Ahmedabad. Hence our this location has proximity to uplink station and saves cost of transportation. 2.Commuting facilities are easily available at this place. Hence it will be easy to our employees as well as clients. 3.Gujarat is also an upcoming hub for film shooting. Our regional offices are located at Delhi, Kolkatta, Chennai, Mumbai, Hydrabad.
Distribution Channel: It refers to how an organization will distribute the product or service offering to the end users. Efficient and Effective distribution is important if the organization wants to meet its marketing objectives. TV channel
M.S.O. (Multi System Operators) L.C.O.(Local Cable Operators)
TV channel L.C.O.(Local Cable Operators)
TV channel D.T.H.(Direct To Home)
4.People It is rightly said, “Employees represent the organization to the customers and clients and a service company can be only as good as its people.’’ We need to train our employees how to face customers and clients otherwise the entire marketing effort will go futile. • Factors Motivating Employees
1. 2. 3. 4. 5. 6.
Ambience of the place Pay Package Allowances Leaves Work Culture Company Policies
Our company has following policies for welfare of employees: 1. Awards and rewards : Employee of the year award 2. Special leaves: Special leaves will be given to employees. 3 leaves will be given which have to be devoted for social service which will give satisfaction to employees. 3. Bonus : One month salary is given as bonus. 5. Physical Evidence : Physical Evidence means the environment that is delivered and any tangible goods that facilitate the performance and communication of service. Based on the perception on the tangible clues the customer makes the purchase decision .Hence physical evidence like I-cards for employees, diaries, note pads and calendars for clients as well as employees are used bus to tangiblize our service. Apart from this we have designed of wall, colour of wall, floor also form part of physical evidence.
6.Process :
Process means the procedures, mechanism, and flow of activities by which a service is acquired. Process decisions radically affect how a service is delivered to customers Relevance of Process Management o To avoid error o To increase the quality of service o To increase the standardisation
Telecasting Process : Telecasting- Broadcasting visual images of stationary or moving objects are referred to as telecasting. Telecasting is divided into two main areas of activity in the modern television and broadcasting world: Playout Automation and Uplinking. Playout Automation process involves some essential equipment and software to work with the equipment. Uplinking Process : The process of converting the signals to Radio Frequency signal and sending it to satellite is referred to as uplinking. A critical function of channel, is that it require high quality redundant equipments to keep running 24 hours. These equipments include encoders, multiplexers, modulators, upconverters, high performance amplifiers and antennas. Also the antennas require a tracking system to align the dish accurately for uplinking to the satellite We are currently outsourcing the uplinking facilities from Doordarshan Kendra Ahmedabad for which we have entered into “Uplinking Service Agreement” on February 2, 2009 for a period of six years from the date of actual launch of the channel. The services to be provided / supported by them is uplinking of our TV Channel and Playout automation service.
We have to hire space capacity on satellite which receives signals uplinked by teleport and distribute the same to various cable operators. We have entered into an agreement with Antrix Corporation Limited, a Government of India company under Department of Space for transponder hiring Downlinking Process : Downlinking is a process of receiving the radio frequency signal by using a satellite dish, decoding it and converting it to an audio video signal. The cable operator installs the dish that points to the satellite to which the television channel is uplinking. The satellite dish receives the signal and provides it to a decoder that can decode the MPEG2 encrypted or free to air signal and convert it to an audio video signal. This signal is further distributed over the cable operators’ network. ourselves from other broadcasters, increase our marketing, distribution & promotional cost, change our programming mix and review our employee retention policies. Distribution Platform : The Government has recently, liberalized regulations for implementation of conditional access systems, in a phased manner, and has allowed Direct-tohome broadcasting, which may bring about changes in the broadcasting industry. We have entered into agreement for distribution with all major MSOs like siticable,GTPL , Incable and all major DTH service providers.
Source of programs : We are dependent on out –house production for program content. Based on our idea of any program the producers will produce the program for us. Also if any producer has a program he/she may present their content before the programming department official and decision to accept or reject the proposal will be then made by them.
Program Schedule : Program Description ; Some of our flagship programs are as follows: Swapnavasavdatta This program is based on Sankrit classic Swapnav?savadatta by the famous Sankrit dramatist Bh?sa. The story involves the King of Vatsa Udayana eloping with Vasavdatta and marrying her in the beginning, but as story progresses, things take turn and Udayana is forced to marry the daughter of a rival and powerful king.The king is not keen, but the loyal minister Yougandharayana stages a plot for the sake of the kingdom and the king, and Vasavadatta is made to separate from Udayana. The drama has a beautiful climax with Udayana getting to know the plot and uniting with Vasavadatta after all the needs of the state are taken care of. Kids Ho It is a program targeted at children. It will consist of different segments like animated stories,kids quiz,fun facts etc. Prarthna It is a early morning program which will consist of different segments like ‘Suvichaar’, ‘Sant Vaani’ , and prayer songs.
ABC of life It is a kind of edutainment program.It will be made up of four segments like a. Best from waste- In this segment viewers will be taught how to utilise some waste or scrap material to make creative and useful things out of it.
b. Sanskruti-In this segment we will show cultural elements of different parts of india. It may include festival celebrations or rituals etc. c. Aushadh-It will focus on giving information regarding some homemade medicines or treatments. d. U Yogi-It will include Yoga guidance for viewers. Kuchh To Kaho It is a edutainment program. It will provide the viewers the oppurtunity to ‘learn with fun’ different languages. Kuchh Khaao Kuchh Pakaao It is a cookery show which will serve the viewers unexplored recepies from different parts of India. Bachpan It is a daily soap which will focus on the life of two kids.One whose childhood is lost due to child labour and the other who is suffering from child labour in disguise i.e . pressure of studies from parents and teachers. Yaar Aana It is a week end serial which focuses on college life and friendship.
Hello Shyam It is a daily soap. It will focus on the life of a young boy who is handsome, charming and dynamic ,with a sharp mind and good interpersonal skills. He is a good friend and loving son . His personality is portrayed as that of Lord Krishna. His life journey is also comparable to Lord Krishna. Today’s Trend
This is a lifestyle show which will present the viewers the current trends of fashion, interiors, automobiles, electronics etc. Rydhamm… It will be a innovative antakshari program.
7.Promotion Promotion is a term taken from Latin word ‘promovere’ that means moving from one to one and to another In marketing promotion means all those tools through which marketer communicates its products to the consumer. It also includes different means that he uses to increase the service of its product.
Advertisement : Advertisement can be defined as paid form of non-personal communication of ideas , goods or services by an identified sponsor. Steps in advertising : 1. Mission It consists marketing objective. Our objective is: • To create awareness regarding launch of new channel • To create awareness regarding the new programmes that are going to be on air. • To attract towards the program so as to maintain and increase the viewership. 2. Money
Although advertising is treated as current expense, part of it is really an investment that builds up on tangible assets called brand equity. There are two main factors that influence the advertising budget: 1. Position of organization in the market: As ours is a new organization we have to spend a large amount on advertising to create awareness and to gain the viewership. 2. Market share As we have to build market share we have to spend large amounts on advertisement. 3. Message: The messages’ impact depend not only on what is said, but also often more important on how it is said.So the message generation plays an important role in organization’s image or reputation.
Following types of Hoardings and Ads will be displayed
4. Media: Advertising media is a means through which advertisers communicate their message to target people with a view to influence them in terms of advertising objectives. Our advertising mix will be as follows:
PRELIMINARY AD SCHEDULE News papers : Frequency 8 Hoardings: City 15 Radio : Time slot 8AM to 10AM 11AM to 6PM Total 1128000 1296000 2424000 Hoardings per city 5 Hoarding cost per month 40000 Frequency in month 1 Total 3000000 No. of news papers 4 Rate per cm. sq. 1200 Size in sq. cm. 400 Total 15360000
T.V. : Time slot 8PM to 10PM 1PM to 4PM Rate per 20 sec. 200000 25000 Frequency per month 24 168 Total 4800000 4200000 9000000
Leaflets : Quantity 500000 Brochures : Brochures AD EXPENDITURE PER ANNUM YEAR 1 News papers Frequency 50000 Rate per 5000 200 Total 20000
No. of news papers
Rate per cm. sq.
Size in sq. cm.
Total
Website as mean of communication
An organization’s website is one of the potent tools of communication a website can integrate various communication tools at a time. Our website is: www.ourstv.org Website features: • Site map • Feedback forum on program, character etc. • Rating of programs • Updates of programs and details of upcoming programs. • Suggestion forum for new programs and existing programs Word of mouth Advertisement : Word of mouth Advertisement involves direct communication about service . It is communication between people who know each other in someway. For our service word of mouth advertising plays a very important role.
We are incurring handsome amount on ads because we are a new TV channel and there is too much competition so we feel advertising is necessary to communicate about our programs to viewers. 5. Measurement: With the use of media and message we would reach all the target viewers.We can measure this with the help of T.R.P.(Television Rating Points) of our programs as well as G.R.P.(Gross Rating Points).
MARKET RESEARCH
Market Research can be defined as the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company. Market research includes the following steps.
Define the problem and research objectives: Market research is undertaken to achieve particular objectives. Our main objective is to find the scope and feasibility of Entertainment TV Channel. In this objective, the following sub-objectives have been met. • to get information regarding the preference of people for various sources of entertainment. • to get information regarding the preference of people regarding different types of channels like entertainment, news etc.. • to know peoples’ TV habits. • To find out what could be the strategy for timing of shows. • to find out the process of establishing TV channel in Ahmedabad. Develop the research Plan: The next step of a marketing research is to develop a systematic plan regarding decision factors like sources of data, data collection method, sampling plans and contact method. 1. Sources of data: The data sources can be primary and secondary data. Primary data: Primary data are the raw and structure of variables that have been specifically collected for a current information research problem. Our research for primary source consists of: • People: - People generally constitute the source of information in respect of most researchers. We have surveyed 100 people of various places of Gujarat.
Secondary data: - The information collected from external source is known as secondary data. There are innumerable sources from which we have collected secondary data like newspapers, annual reports of various companies like Balaji Telefilms, NDTV, etc..,and websites of associations like ibef and books
2. Research approaches:We used the “survey approach” through questions and “behavioural data” by analyzing consumer behaviour and through asking them. 3. Research instrument:The major research instrument that we used was questionnaires of consumers. 4. Sampling Plan: The marketing researcher must design sampling plan, which consist of three components • Sampling Unit: This represents the target population for the survey. For this research, we approach people of different areas of Ahmedabad city. In this research we approach all categories of persons according to gender, age, and occupation, which are the most important factors determining the preference. • Sampling Size: The survey covers 100 respondents spread across Gujarat. The sample is representative of urban areas. • Sampling Procedure:
We have done survey through convenience sampling i.e. selecting the most accessible population members. 5. Contact Method: There are various ways like mail, telephone and personal interview to contact the people. We used personal interview and telephone to contact people. Collection of information: In collecting the information we faced some problems like • The response of some people was biased and unreliable. • We observed that some organizations were not ready to reveal any information. Though collecting the information is mostly prone to error, we have tried our best to cover all possible aspect so that our research can give us correct idea of current scenario. Analysis of Information: The data collected in the previous stages have to be arranged properly and precisely. They have to be carefully processed and edited to make a comparative study. For analysis we have distributed the various questions in tabular form and we have presented it in different charts.
FINDINGS AND CONCLUSION
TOTAL PEOPLE AS PER GENDER
MALE 26
FEMALE TOTAL
74 100
GENDER
26% Male Female 74%
As per the survey, out of 100 respondents 26 respondents are male, while 74 respondents are female.
TOTAL PEOPLE AS PER AGE GROUP
BELOW 15 15-20 4 44 20-30 30 30-40 12 ABOVE 40 10 TOTAL 100
AGE GROUP
10%4% 12% 44% 30% Below15 15-20 20-30 30-40 Above 40
In our survey of entertainment TV channel, most of the respondents are youngsters between the age of 15-20 and the second age group of respondents is 20-30.
TOTAL PEOPLE AS PER THE OCCUPATION
STUDENT BUSINESS- SERVICE HOUSE- PROFESSION TOTAL MAN WIVES 49 6 23 15 7 100
OCCUPATION 60 50 40 30 20 10 0 49
23 15 6 7
Student Business-man Service Profession House-wises
%
1 OCCUPATION
As per the survey, most of the respondents are students i.e. 49, 23 respondents belong to service followed by the house wives, professionals and businessman.
FAMILY INCOME ( per month)
Below 10,000 4 10,00015,000 23 15,00025,000 39 25,00035,000 22 Above 35,000 12 Total 100
income 50 40 % 30 20 10 0 1 income Below 10,000 10,000-15,000 15,000-25,000 25,000-35,000 Above 35,000
As per the survey, most of the respondents are between the income group of 15,000-25,000 and 10,000-15,000.
DO YOU HAVE T.V.?
YES NO TOTAL 97 3 100
3% Yes No 97%
As per the survey, out of 100 respondents 97 respondents have television, while 3 respondents do not have television.
DO YOU HAVE ACCESS TO T.V. CHANNELS?
YES NO TOTAL 85 15 100
ACCESS TO T.V. CHANNEL
15% YES NO 85%
According to survey results, out of 100 respondents, 85 respondents have access to TV. Channel, while 15 respondents do not have access to TV. Channel.
SOURCE OF T.V.CHANNEL
Cable 70 D.T.H. 15 Total 85
Source of T.V. channel
Cable Dth
Here, we can see that, out of 85 respondents who have access to T.V. channel, 70 respondents have it through cable and 15 have access to T.V channel through DTH.
WILL YOU BUY DTH SERVICE IN FUTURE?
Yes 51 No 34 Total 85
Buy DTH in future?
40% 60%
Yes No
As per the survey, out of 85 respondents who have access to T.V. channel , 51 respondents are agree to buy DTH service in future, while 34 respondents refused to buy it.
WHAT KIND OF CHANNELS DO YOU WATCH?
Entertainment Channel Religious Channel News Channel Kids Channel Rank 1 8 2 7
Sports Channel Music Channel Infotainment Channel Movie Channel
5 4 6 3
8 7 6 5 4 3 2 1
Entertainment Channel Religious Channel News Channel Kids Channel Sports Channel Music Channel 1
Rank
Infotainment Channel Movie Channel
According to the results of the survey, the channel usually watched by the respondents are entertainment channel, second preference was given to news channel by the respondents followed by the movies channel, music channel and so on.
IN ENTERTAINMENT CHANNEL, WHAT KIND OF PROGRAM DO YOU WATCH?
Family drama Reality show Comedy Program Rank 7 1 8
Movie Spiritual Program Music base Program Mythological drama Songs and trailers of movies Kids show
4 6 3 5 2 9
9 8 7 6 5 4 3 2 1
Family drama Reality show Comedy Program Movie Spiritual Program Music base Program
Rank
Mythological drama Songs and trailers of movies
In the entertainment channel, mostly people watch Reality show, the second preference given by the respondents to Songs and trailers of movies. third, to music base program and so on.
IN WHICH TIME SLOT, DO YOU WATCH ENTERTAINMENT CHANNEL?
7:00 to 9:00 a.m. 9:00 to 12:00 a.m. 12:00 to 3:00 p.m. 3:00 to 7:00 p.m. 11 9 14 8
7:00 to 10:00 p.m. 10:00 to 12:00 p.m. Total
58 31 131
Timing
7:00 to 9:00 a.m. 9:00 to 12:00 a.m. 24% 8% 7% 11% 6% 44% 12:00 to 3:00 p.m. 3:00 to 7:00 p.m. 7:00 to 10:00 p.m. 10:00 to 12:00 p.m.
As per our survey, in prime time i.e. in the time slot of 7:00 to 10:00 p.m., mostly entertainment channel is being watched. The 2 nd rank is given to 10:00 to 12:00 p.m. .In the time slot of 3:00 to 7:00 p.m., according to our survey, the entertainment channel is not watched.
FINANCIAL FEASIBILITY
• Cost of Project • Means of Finance • Assumptions of Financial Statements • Working Capital Statement • Income Expenditure Account • Balance Sheet • Cash flow statement • Ratios • Evaluation of Project
COST OF PROJECT
Sr No. 1 2 3 4 5. 6. Total Particulars Land & Building Furniture & fixture Miscellaneous assets Preliminary & preOperating Expenses Working Capital Requirement Contingency Amount in Rs. 45,00,000 6,30,000 10,09,168 3,09,09,500 1,02,67,667 3,08,030 3,70,74,168
FURNITURE & FIXTURE
Particulars Sofa set Conference Table Table Glass Wooden Table Plastic Table Chair - revolving - plastic Light board Wall Clock Notice board Suggestion box Fans AC Tube light Water Cooler Miscellaneous fixture Total
Quantity 3 1 1 26 8 20
Price 10,000 10,000 1,500 4,000 500 2,200
Total 30,000 10,000 1,500 1,04,000 4,000 44,000
20 16 1 1 35 15 40 2 -
300 200 200 100 1,000 20,000 300 15,000 -
6,000 3,200 200 100 35,000 3,00,000 12,000 30,000 50,000 6,30,000
MISCELLANEOUS ASSETS
Particulars Laptop Computer TV DVD Quantity 22 4 10 2 Price 32,999 20,000 14,990 2,000 Total 7,25,978 80,000 1,49,990 4,000
Invertors
Printer Fax Machine Projector Fire Fighting Equipment Total
1
1 2 1 1
20,000
8,200 4,000 8,000 5,000
20,000
8,200 8,000 8,000 5,000 10,09,168
PRELIMINARY & PRE-OPERATING EXPENSES
Particulars License fees Trademark Registration Advertisement Expenses Website Designing Miscellaneous Expenses Legal charges Intercom Telephone Telephone Deposit Electricity Charges Total Amount In Rs. 10,20,000 2,500 2,98,04,000 30,000 24,500 3,000 10,000 10,500 1,000 4,000 3,09,09,500
MEANS OF FINANCE
SR. NO. 1 2 MEANS OF FINANCE PARTICULARS Equity Share Capital Long Term Loan From Dena Bank AMOUNT(Rs.) 3,96,24,365 80,00,000
Total Cost Of Project
4,76,24,365
ASSUMPTIONS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Debtors are allowed 1 month credit. Creditors give 1 month credit. Creditors for expenses (Telephone & Electricity) bills are on 2 months credit. Employees will be given 10% increment from 3rd year onwards. Loan is easily available from Dena Bank @ 14% interest rate per annum. 70% of subscription revenue is shared by MSO (Multi-system Operator) and cable operator. Electricity charges are taken at Rs. 3.60 per unit. Numbers of subscribers are assumed to increase @ 10%. Working days are assumed to be 365. Cost of acquisition of programs and movies are assumed to increase @ 5 %. .
STATEMENT SHOWING WORKING CAPITAL REQUIREMENT
(A)CURRENT ASSETS
Debtors
Ad sales 1200996000 X 1/12 X 1 subscription revenue 54000000 X 1/12 X 1 space selling 14600000 X 1/12 X 1 100083000 4500000 1216667 4000000 105799667 4000000 Rs.
Cash
(A)
(B)
109799667
CURRENT LIABILITIES
99500000
Creditors 1194000000 X 1/12 X 1 Lag in payment of expenditure telephone bill 120000 X 1/12 X 2 electricity bill 72000 X 1/12 X 2
20000 12000
32000
(B) (A) - (B) CONTINGENCY @ 3%
99532000 10267667 308030
COMPUTATION OF DEPRICIATION
Cost Of Building (depriciation @ 10%) Particular Opening Balance Depriciation Closing Balance Year 1 4500000 450000 4050000 Year 2 4050000 405000 3645000 Year 3 3645000 364500 3280500 Year 4 3280500 328050 2952450 Year 5 2952450 295245 2657205
Cost Of Computer and Laptop=805978(Depriciation@60%) Particular Year 1 Year 2 Year 3 Year 4 Year 5 Opening Balance 805978 322391.2 128956.5 51582.59 20633.04 Depriciation 483586.8 193434.7 77373.89 30949.56 12379.82 Closing Balance 322391.2 128956.5 51582.59 20633.04 8253.215 Cost Of TV = 149900 (Depriciation @ 60%)
Particular Opening Balance Depriciation Closing Balance
Year 1 149900 89940 59960
Year 2 59960 35976 23984
Year 3 23984 14390.4 9593.6
Year 4 9593.6 5756.16 3837.44
Year 5 3837.44 2302.464 1534.976
Cost Of Projector = 8000 (Depriciation @ 60%) Particular Opening Balance Depriciation Closing Balance Year 1 8000 4800 3200 Year 2 3200 1920 1280 Year 3 1280 768 512 Year 4 512 307.2 204.8 Year 5 204.8 122.88 81.92
Cost Of Furniture & Fixture = 630000 (Depriciation @ 15%) Particular Opening Balance Depriciation Closing Balance Year 1 630000 94500 535500 Year 2 535500 80325 455175 Year 3 455175 68276.25 386898.8 Year 4 386898.8 58034.81 328863.9 Year 5 328863.9 49329.59 279534.3
Cost Of DVD = 4000 (Depriciation @ 100%) Particular Opening Balance Depriciation Closing Balance Year 1 4000 4000 0 Year 2 0 0 0 Year 3 0 0 0 Year 4 0 0 0 Year 5 0 0 0
SCHEDULE OF REPAYMENT OF LOAN
Amount in Rs. Interest @ Sr.No. 1 2 3 4 Opening balance 8000000 6789745 5410054 3837207 Principle amount 1210255 1379691 1572847 1793046 14% 1120000 950564 757408 537209 Installment 2330255 2330255 2330255 2330255 Balance 6789745 5410054 3837207 2044161
5 TOTAL
2044161
2044161 8000000
286094 3651275
2330255 11651275
FORMULAS OF RATIO
1 2 3 4 NET PROFIT RATIO = P.A.T. x 100 Total sales CASH PROFIT RATIO = P.A.T. + Non Cash Expenses x 100 Total Sales + Other Income CURRENT RATIO = Current Assets Current Liabilities FIXED ASSETS TURNOVER RATIO = Total Sales Fixed Assets TOTAL TURNOVER RATIO = Total Sales Total Assets RETURN ON CAPITAL EMPLOYED = P.B.I.T. x 100 Capital Employed INTEREST COVERAGE RATIO = P.A.T. + Interest + Depreciation Interest on Debt DEBT EQUITY RATIO = Long Term Debt Equity Shareholders Fund DEBTORS RATIO = Debtors x 360 Total Credit Sales
5
6
7
8 9
10 CREDITORS RATIO = Creditors x 360 Total Credit Purchase 11 RETURN ON NET WORTH RATIO = P.A.T. Net Worth
12 PROPRIETOR’S RATIO = Proprietor’s Fund Tangibles Assets 13 EARNING PER SHARE = P.A.T. No. of Equity Shares 14 DEBT SERVICE COVERAGE RATIO = P.A.T. + Interest +Depreciation Interest + Repayment of Installment
RATIO ANALYSIS
PARTICULARS NET PROFIT RATIO (A) Profit After Tax (B) Sales NET PROFIT RATIO CASH PROFIT RATIO (A) Cash Profit (B) Total Profit CASH PROFIT RATIO CURRENT RATIO (A) Current Assets (B) Current Liabilities CURRENT RATIO FIXED ASSETS TURNOVER RATIO (A) Sales (B) Fixed Assets FIXED ASSETS TURNOVER RATIO TOTAL ASSETS TURNOVER RATIO (A) Sales (B) Total Assets TOTAL ASSETS TURNOVER RATIO RETURN ON CAPITAL EMPLOYED (A) PBIT (B) Total Capital Employed RETURN ON CAPITAL EMPLOYED INTEREST COVERAGE RATIO (A) PAT + Interest + Depreciation (B) Interest on Debt INTEREST COVERAGE RATIO DEBT-EQUITY RATIO (A) Debt (B) Equity DEBT-EQUITY RATIO DEBTORS RATIO (A) Debtors (B) Credit Sales DEBTORS RATIO
2009-10
2010-11
2011-12
2012-13
2013-14
-2139212 1269596000 -0.16849549
33185237 1395175800 2.378570285
92723212 1560220896 5.942954119
163202846 1744833804 9.353489463
249551355 1951338901 12.78872444
5169515 1435596000 0.360095389
40083793 1561175800 2.56753871
99430420 1734520896 5.732442903
169807844 1927848804 8.808151534
256092635 2143504651 11.94737949
114066957 99532000 1.146033004
159885271 104507000 1.529900112
212894047 109730750 1.940149384
265745698 115215688 2.306506194
284425637 120974872 2.351113354
1269596000 5012341 253.2940197
1395175800 4295685 324.7854068
1560220896 3770377 413.8103155
1744833804 3347279 521.2693068
1951338901 2987899 653.0806098
1269596000 119079298 10.66176927
1395175800 164180956 8.49779313
1560220896 216664424 7.201094057
1744833804 269092977 6.484129848
1951338901 287413536 6.789307588
-1019212 19547298 5.214081251
51223609 59673956 85.83913726
129338530 123060674 105.1014315
227964605 178877289 127.441894
350599871 261438664 134.1040631
107615 1120000 0.096084821
34852457 950564 36.66502939
82118618 757408 108.4205844
144350970 537209 268.7054201
222459773 286094 777.5758073
6789745 12757553 0.53221374
5410054 54263902 0.099698949
3837207 108096467 0.035497987
2044161 176833128 0.011559831
0 261438664 0
105799667 1269596000 30.00000009
116264650 1395175800 30
130018408 1560220896 30
145402817 1744833804 30
162611575 1951338901 29.99999998
TRADING & PROFIT AND LOSS ACCOUNT
Particulars
2009-10 Amt in Rs.
2010-11 Amt in Rs.
2011-12 Amt in Rs.
2012-13 Amt in R
Income from sales Ad sales subscription revenue space selling sponsership fees Other income Interest received on Investment 1,200,996,000 54,000,000 14,600,000 166,000,000 1,435,596,000 1261045800 118800000 15330000 166000000 1561175800 1412371296 130680000 17169600 174300000 1734520896
1581855
143748
19229
183015
600000
TOTAL INCOME Expenditure Cost of acquisition of programs Operating expenses Electricity expense Telephone expense Uplinking charges Transponder hiring chages Promotional expenses advertisement expense Payments to employees Salary Bonus Administration expenses Audit fees Insurance Miscellaneous expense Courier charges stationary and printing Travelling expenses Office expenses Preliminary expense written off Depreciation selling & distribution expenses Carriage expenses Interest on loan Rent Decoder Charges Commission to ad agency Service tax paid Corporate tax paid TOTAL EXPENDITURE Dividend paid BALANCE TRANSFRED TO BALANCE-SHEET Income over expenses/ (expenses over income)
1,435,596,000
1561175800
1735120896
1194000000 120000 72000 6000000 14400000 120000 72000 6000000 14400000
1253700000 120000 72000 6000000 14400000
1316385000
20592000 30786000
20592000 32325300
20592000 33941565
120 72 6000 14400
12870000 1072500 37080 38970 250000 100000 48000 1095000 120000 6181900 1126827
13942500
12870000 1072500 37080 38970 250000 100000 48000 1095000 120000 6181900 716656
13942500
14157000 1179750 37080 38970 250000 100000 48000 1095000 120000 6181900 525308
15336750
15572 1297
37 38 250 100 48 1095 120
8997777
8587606
8396258
6181 423
25000000 1120000 300000 420000 24019920
25000000 950564 300000 50859920 118557015 25220916 51471480 130283869 17087808 1527990563
25000000 757408 300000 28247425 54304833 145696058 47745220 1642397684 11887310
25000 537 300
31637
1437735212
(2,139,212)
33185237
80835902
EVALUATION OF PROJECT Net Present Value
CASH INFLOW DISCOUNT FACTOR @ 15% DISCOUNTED CASH FLOW 4497478.05 30303347.51 57603366.38 85797518.09 118595753.3 296797463.3
NO. 1 2 3 4 5 LESS:
YEAR
2009-10 5169515 0.87 2010-11 40083793 0.756 2012-13 87543110 0.658 2013-14 149995661 0.572 1014-15 238623246 0.497 NET PRESENT VALUE OF CASH INFLOW P.V. OF CASHOUTFLOW COST OF PROJECT 37048668 WORKING CAPITAL 10267667 P.V. OF CASHOUTFLOW NET PRESENT VALUE
ADD:
47316335 249481128.3
INTERNAL RATE OF RETURN
CASH INFLOW 5169515 40083793 87543110 149995661 238623246 DISCOUNT FACTOR @ 20% 0.833 0.694 0.579 0.482 0.402 DISCOUNTED CASHFLOW 4306205.995 27818152.34 50687460.69 72297908.6 95926544.89 251036272.5
NO. 1 2 3 4 5
YEAR 2009-10 2010-11 2012-13 2013-14 1014-15
INTERNAL RATE OF RETURN
NO. 1 2 3 4 5
YEAR
CASH INFLOW
DISCOUNT FACTOR @ 21%
DISCOUNTED CASHFLOW 4270019.39 27377230.62 49374314.04 70047973.69 92108572.96 243178110.7
2009-10 5169515 0.826 2010-11 40083793 0.683 2012-13 87543110 0.564 2013-14 149995661 0.467 1014-15 238623246 0.386 NET INTERNAL RATE OF RETURN
IRR= 20% + 251036272.521 - 47316335 x 1% 251036272.521 – 243178110.692 =20% + 203719937.521 7858161.829 =20% + 0.259246 % =20.2592% = 20.25% P.I = P.V. Of Cash Inflow P.V. Of Cash Outflow = 296797463.292 47316335 = 6.27 x 1%
Future Expansion
We will constantly strive to entertain our customers with healthy and innovative programs. We are planning to set up our own production house in future. Apart from this we are also thinking of starting new TV channels in niche segment and news segment.
CONCLUSION
By doing an extensive research over all aspects, we come to the conclusion that the project is feasible. In the end, we can say that we have gained a deep insight into the media industry. We, again, would like to thank the different existing TV channels for giving us the practical insight. We are also thankful to the faculties who guided us at every junction in this journey. Feasibility study revealed a deep hiatus between theoretical and practical aspects of management.
BIBLIOGRAPHY
1. Marketing Management : Philip Kotler 2. Modern Television Practice - R. R. Gulati 3. Advertising and promotions an IMC Perspective - Kruti Shah - Alan D’souza 4. Annual Report of Balaji Telefilms, Zee Television.
WEBOGRAPHY
1. www.google.com 2. www.yahoo.com 3. www.televisionpoint.com 4. www.99acres.com 5. www.indiantelevision.com 6. En.wikipedia.org 7. Mib.nic.in 8. www.indiaproperty.com 9. www.in.kpmg.com
QUESTIONNAIRE ON CONSUMER PREFERENCE ON ENTERTAINMENT TV CHANNEL By Students of 3rd year M.B.A., K.S.School of Business Management N.B.:- 1. The information in the survey will be kept confidential and will be used for research purpose only. 2. Please tick the boxes for ‘YES’ and leave the boxes blank for no response. ----------------------------------------------------------------------------------------------1. Name 2. Address 3. Gender : : ( ) Male ( ) Female ( ) 20-30 :
4. Age : ( ) Below 15 ( ) 15-20 ( ) 30-40 ( ) above 40
5. No. of Family members : 6. Occupation: ( ) Student ( ) Business man ( ) Service ( ) Profession ( ) Housewives ( ) others ______ (please specify) 7. Family income (per month): ( ) Below 10,000 ( ) 10,000-15,000 ( ) 15,000-20,000 ( ) 25,000-30,000 ( ) above 35,000 8. Do you have Television? : ( ) Yes ( ) No
9. Do you have access to T.V. channels? ( ) Yes ( ) No If Yes, What is the source? ( ) Cable connection ( ) DTH __________ (Please specify) ( ) Others___________ (Please specify) 10. Will you buy DTH service in future? ( ) Yes ( ) No 11. What kind of channels do you watch? (Rank them) ( ) Entertainment channel ( ) Sports channel ( ) Religious channel ( ) Music channel ( ) News channel ( ) Infotainment channel ( ) Kids channel ( ) Movie channel 12. In Entertainment channel, which kind of program do you Watch? (Rank them) ( ) Family drama ( ) Music base program ( ) Reality show ( ) Mythological drama ( ) Comedy program ( ) Songs & trailers of movies ( ) Movie ( ) Kids show ( ) Spiritual program (Yoga) 13. Which channel do you prefer more? (Rank them) ( ) Star plus ( ) Colors ( ) Z TV ( ) 9x ( ) Sony ( ) Star one ( ) NDTV imagine ( ) Sahara one ( ) Sab TV ( ) Doordarshan
14. In which time slot, do you watch entertainment channel? ( ) 7:00 to 9:00 a.m. ( ) 9:00 to 12:00 a.m. ( ) 12:00 to 3:00 p.m. ( ) 3:00 to 7:00 p.m. ( ) 7:00 to 10:00 p.m. ( ) 10:00 to 12:00 p.m. 15. List some of your favorite entertainment T.V. programs. _________________________________________________ _________________________________________________
Thanks for your cooperation
SALARY STATEMENT Per month per head 90000 65000
Designation CEO Program Head
No. of employees 1 1
Total 90000 65000
1st year 90000 65000
2nd year 90000 65000
3rd year 99000 71500
4th year 108900 78650
5th year 119790 86515
Executive Producer Creative Supervisor Marketing Head Ad sales Manager Advertiser Manager Finance Manager Accountant HR Manager IT Legal Advisor Tape Librarian Distribution Head Distribution Executive Peon Receptionist Security Guard
5 5 1 10 2 1 2 1 1 1 1 1 4 5 1 1
40000 40000 30000 25000 25000 20000 6000 30000 15000 25000 8000 15000 10000 3000 4500 3000
200000 200000 30000 250000 50000 20000 12000 30000 15000 25000 8000 15000 40000 15000 4500 3000
40000 40000 30000 25000 25000 20000 6000 30000 15000 25000 8000 15000 10000 3000 4500 3000
40000 40000 30000 25000 25000 20000 6000 30000 15000 25000 8000 15000 10000 3000 4500 3000
44000 44000 33000 27500 27500 22000 6600 33000 16500 27500 8800 16500 11000 3300 4950 3300
48400 48400 36300 30250 30250 24200 7260 36300 18150 30250 9680 18150 12100 3630 5445 3630
53240 53240 39930 33275 33275 26620 7986 39930 19965 33275 10648 19965 13310 3993 5989.5 3993
Necessary forms for getting the uplinking and downlinking channels
FORM 1 Application form for permission to
(i) set up uplinking hub/ teleports, (ii) uplink TV Channels (both News & Current Affairs and Non-News & Current Affairs) and (iii) uplink to news agencies. (One original and four identical copies to be submitted). The Secretary, Ministry of Information & Broadcasting, Shastri Bhawan, ‘A’ Wing, New Delhi-110 001. Subject: Application for permission to ………………………………... (Please mention the purpose of application).
Sir, I hereby submit the following details in support of the eligibility as prescribed in the guidelines for uplinking, in addition to other particulars: 1. i) ii)
Sl no
Name of Applicant Company: _____________________________________ Particulars of the Directors (starting with CEO/MD):
Date of Birth Nationality Passport Details, If Any Position held Address
Name/ Parentage
(Any change in Board of Directors prior to issue of permission to be informed immediately to the Ministry. The company would have to obtain prior permission from the Ministry in case of change of Directors, after issue of permission.) 2. i) Address (Office) (a) Head Office (b) Regional Office
ii)
Telephone Number (s) FAX: e-mail: Registration details (enclose Memorandum & Articles of Association)
iii) 3.
Structure of Equity Capital i) Authorised share capital: Rs. _____________ ii) Paid up share capital: Rs. _____________
4.
Share-Holding pattern: (Enclose details as per Annexure) i) Direct investment (a) Indian (b) Foreign ______% ______%
Break-up of Foreign Direct Investment Individual………….% Company…………..% NRI………………..% OCB……………….% PIO………………..% ii) (a) (b) Portfolio Investments Indian…………% Foreign………..%
Break-up of Foreign portfolio Investment FIIs NRIs OCBs PIOs iii) Total foreign equity in the company (Direct & Indirect) ………
(Indicate the detailed calculation, including indirect foreign equity as per clause 3.1.3 and enclose SHP of all investing companies.) 5. (i) Net worth: …………………………
(Enclose a copy of the audited balance sheet and Profit & Loss Account for the immediate preceding year and certificate of Net Worth on the basis of these documents by a Chartered Accountant as per format enclosed, in case the networth certificate is on a date different from end of the financial year, it should be supported by certified balance sheet from the statutory auditor on the date of such certification.) (ii) Source of funding: (Enclose a copy of the project report with all technical details, flow of funds and source of funding.) 6. 7. Field of activity: (i) Details of transponder(s) for uplinking and downlinking: Name of Orbital satellite(s) location proposed to be hired Type and No. of transponder(s) with bandwidth Signal strength in primary zone over India Name of the Uplink & Company from downlink which the frequencies. satellite/transponder is to be leased
(Enclose lease Agreement & footprint of each satellite proposed to be hired) (ii) In case of foreign satellite, the detailed reasons for not using the capacity on Indian satellite may be enclosed. Additiona details in case of application for a teleport. 8. i) ii) Details of teleport Location of teleport Capacity of teleport (Proposed)
(a) (b) (c ) (d) (e)
No. of channels: No. of satellites: No. of proposed earth stations constituting teleport Approximate date for commissioning the teleport Antenna size of the teleport, EIRP
Additional details in case of application for uplinking a TV channel. (For both Non-News & Current Affairs and News & Current Affairs)
9.
Details of uplinking hub (Teleport) a) Name and address of the company providing the Teleport for uplinking. b) Location of teleport c) Antenna size of teleport, EIRP d) Permission details of the teleport, status of its operationalisation and period of agreement with the Teleport Service Provider . (Enclose a copy of the agreement with the Teleport Service Provider, in
case of a Third Party Teleport.) 10. Number & name of channel (s) to be uplinked indicating the proposed date of commencement of uplinking from proposed hub/ teleports. Sl.No. Name of Language the Channel Digital or Free to Air Proposed date Analog or of Encrypted commencement of uplinking
11. Whether declaration in Form 1A and 1B or 1C enclosed. (Yes/No) and also mention the details. [Please note that declaration in Form 1A& 1B are required in the case of a News & Current affairs TV channel, whereas declaration in Form 1A & 1C are to be furnished for a Non-news & current affairs TV channel.]
Additional details in case of application for a News & Current Affairs TV Channel. 12. Particulars of the News Editor(s), authority(ies)/body(ies) exercising editorial control over news & current affairs
Sl no Name/ Parentage Date Of Birth Nationality Passport Details, If Any Position held Address
(Any change in the news editor prior to the issue of permission will have to be informed immediately to the Ministry. The company would seek prior clearance from the Ministry in case of such change, after issue of permission.) 13. Whether the representation on the Board of Directors are proportionate to the shareholding in the company ----- (Yes/ No) If not, the reasons thereof: …… 14. 15. PIB accreditation details (enclose certificate) Whether company conforms to Clause (C) of the eligibility criteria (Yes/ No) (Enclose documents in support of compliance and a certificate to this effect by a Chartered Accountant.) 16. Disclosures about shareholders agreements, loan agreements and such other agreements that are finalized or are proposed to be entered into. (Enclose all the documents):
Additional details in case of application for uplinking to news agencies. 17. PIB accreditation details (enclose certificate)
18. Is the news agency 100% owned by Indians, if so, enclose shareholding pattern with details as per Annexure.
19.
Give details of equipment for distribution of news material (i) SNG, (ii) DSNG, (iii) Permanent Earth Station Give details of the equipment to be used for collecting news material (i) SNG, (ii) DSNG Location(s) at which news gathering/distribution equipment to be installed.
20.
21.
I/We, __________________________________the applicant(s) declare that the above facts are correct in all respects. Place : Date : Name Office Address: Seal
do hereby
(Signature of Applicant) [Authorized Signatory of the Company]
List of Enclosures attached with the Application Please tick against the following documents enclosed with the application (as applicable): (1) (2) (3) (4) Memorandum & Article of Association [ point 2(iii). Shareholding Pattern as per Table 1 for Applicant Company & Table 2 for investing companies [point 4]. Calculation Sheet for Foreign Equity in the company (Direct & Indirect) [point 4(iii)] with copy of FIPB approval. Audited Balance sheet and Profit & Loss Account for the immediate preceding financial year and Certificate of Net Worth (as per enclosed format with notes) by a Chartered Accountant on the basis of these documents [point 5(i) ]. (4.1) In case the networth certificate is on a date different from end of the financial year, it should be supported by certified balance sheet from the statutory auditor on the date of such certification.
(4.2) (5) (6) (7) (8) (9) (10) (11) (12) Place : Date :
In case shares have been allotted on basis of valuation of a property / equipment, then valuation certificate from an approved valuer should also be enclosed. Satellite lease agreement and details of footprint [point 7]. Project Report [point 5(ii)]. Copy of the agreement with the Teleport Service Provider, in case of a third party teleport [point 9]. PIB Accreditation Certificate [point 14]. Certificate by a Chartered Account with all the supporting document in compliance to Clause (C) [point 15]. Shareholding and Loan Agreements, if any [point 16]. Affidavits in Form 1A & 1B or 1C point 11]. Any other: ………………………………… (Signature of Applicant) Name Office Address:
[All pages of the application to be page numbered in reverse order (last page to be numbered 1 and certified by authorised signatory of the company with seal] [Note: In case of non furnishing of complete information, the application is liable to be rejected and returned to the company forthwith.]
ANNEXURE TO FORM 1. FORMAT FOR SHAREHOLDING PATTERN TO BE FURNISHED ALONG WITH APPLICATION TABLE-1 SHAREHOLDING PATTERN OF APPLICANT COMPANY
M/s ______________________ AS ON __________ FACE VALUE OF THE SHARE RS.__________________
S.No.
Category of Shareholders.
Share Holding Direct Investment No. of % of total Shares paid up shares No. of Shares Portfolio Investment % of total paid up shares
1. 2. 3. 4. 5. 6. 7. 8. 9.
Indian individual Indian company Foreign individual Foreign company NRI OCB FII PIO Any other
(i) For Indian company (ies), information as per proforma in Table-2 also to be supplied for each company. (ii) Complete beak-up of number of shares of the applicant company held by each Indian company should also be provided. (iii) In case of FDI enclose copy of FIPB approval.
TABLE-2 DETAILS OF SHAREHOLDING PATTERN OF EACH INDIAN COMPANY HOLDING SHARE IN THE APPLCANT COMPANY AS IN SERIAL NO.2 IN COLUMN (1) OF TABLE-1
i)
SHAREHOLDING PATTERN OF COMPANY
M/s ______________________ AS ON __________
FACE VALUE OF THE SHARE RS.________________________ S.No. Category of Shareholders. Share Holding Direct Investment No. of % of total paid No. of Shares up shares Shares 1. 2. 3. 4. 5. 6. 7. 8. 9. Indian individual Indian company Foreign individual Foreign company NRI OCB FII PIO Any other Portfolio Investment % of total paid up shares
ii) iii)
- Do - Do -
Note: Repeat same information about each Indian company holding share in the applicant company.
FORM-1A AFFIDAVIT/UNDERTAKING (on Rs 20 Stamp Paper & Notarized) WHEREAS I, Shri ………………… S/o Shri _________________in the capacity of …………..(designation) have applied to the Ministry of Information & Broadcasting on behalf of M/s……………………….for approval/permission for uplinking of TV channel ………………. From ……………….. (place). WHEREAS as a condition precedent to above approval/permission, I am required to abide by the Programme & Advertising Codes prescribed under the cable Television Network (Regulation) Act, 1995 and the rules passed thereunder. WHEREAS I have read the abovementioned Programme & Advertising Codes. WHEREAS I understand that the permission/approval so granted can be withdrawn, if I fail to abide by the said Programme & Advertising Codes. Now, therefore, I hereby undertake as follows: i) I undertake to abide by the Programme & Advertising Codes laid down by the Ministry of Information & Broadcasting, Government of India from time to time. ii) I undertake to furnish periodic information relating to public complaints, programme contents and any other information in respect of above-mentioned TV channels as may be laid down/asked for by the Ministry of Information & Broadcasting from time to time. iii) I undertake to provide the necessary equipment and facility for continuous monitoring of the broadcaster service at my own cost and preserve the recordings of broadcasting materials for a period of 3 months from the date of broadcast and produce the same to Ministry of Information & Broadcasting or to its authorized representative as and when required. Signature Name Designation Seal of Company Place : Date :
FORM-1B [for news & current affairs TV channels] AFFIDAVIT/UNDERTAKING (on Rs 100 Stamp Paper & Notarized)
WHEREAS M/s _____________________________ have applied to the Ministry of Information & Broadcasting for approval/permission for uplinking of a TV channel _____________________________. WHEREAS information have been provided in Form 1 supported by affidavit in Form 1A and declarations in Table I and Table II. WHEREAS I understand that the information given in the application and in Form 1A, 1B and Table I and Table II form a composite part of this permission. I do herby undertake that I will abide by all the terms and conditions applicable to uplinking of News & Currents Affairs TV Channels at all times.
For and on behalf of M/s _______________________________
Company Secretary. Seal of the Company Date: Place:
FORM- 1C AFFIDAVIT/UNDERTAKING [For Non-News & Current Affairs TV Channel] (on Rs 100 Stamp Paper & Notarized) WHEREAS M/s.--------------------------------------------------------------have applied to the Ministry of Information & Broadcasting for approval/permission for uplinking of a TV channel -------------------------------------. WHEREAS information have been provided in Form 1 supported by affidavit in Form 1A and declarations in Table I and Table II along with other related documents (i.e. Memorandum and Articles of Association, project report, satellite lease agreement, etc.) WHEREAS we understand that the information given in the application and in Form 1A 1C and Table I & II and other related documents form a composite part of this permission. We submit that the channel is purely an entertainment channel and does not have any news or current affairs based programme. We hereby undertake that in accordance with the guidelines for uplinking of TV channels, we will seek fresh permission from the Govt., should there be a change in the Programme content of the channel to include news/current affairs along with a change in the ownership pattern to include any element of foreign equity/management control and that prior information of any such proposed change shall be given to the Government. We also undertake to supply information, in the format as prescribed by the Govt. from time to time.
For and on behalf of M/s.--------------------------Authorized Signatory Seal of the Company Date : Place:
Format for the Certificate of Net Worth by the Statutory Auditors
We have audited the Books of Accounts of M/s._______________________ for the financial year ended March 31,20__/ period ended dd/mm/year and certify that the Net Worth of M/s.____________________________________________________ as on March 31,20__/as at dd/mm/year is Rs._______________(Rupees in words _______________________________________________________) We further certify that the Networth of M/s.____________________ (Name of the company) is computed as follows.
Sl.No.
Particulars
Amount in Rs.lacs
1. Book Value of assets 2. Book value of fictitious and intangible assets 3. Liabilities other than owner’s funds 4. Net Worth {1-(2+3)} Place/date statutory auditors Notes 1. “Net Worth” has been defined in the Companies Act under section 2(29A) as follows. ‘net worth means the sum total of the paid-up capital and free reserves after deducting the provisions or expenses as may be prescribed. Explanation for the purpose of this clause, “free reserves” means all reserves created out of the profits and share premium account but does not include reserve created out of revaluation of assets, write back of depreciation, provisions and amalgamations. 2. Networth The excess of the book value of assets (other than fictitious assets) of an enterprise over its liabilities. “Book value of assets” The amount at which an item appears in the books of account or financial statements. It does not refer to any particular basis on which the amount is determined. Eg. Cost, replacement value etc. “Fictitious Assets” Items grouped under the assets in a balance sheet which has no real value (eg. The debit balance of the profit and loss account) “Liabilities” The financial obligation of an enterprise other than owner’s funds.
Owner’s funds means paid-up capital and free reserves Explanation for the purpose of this clause, “free reserves” means all reserves created out of the profits and share premium account but does not include reserve created out of revaluation of assets, write back of depreciation provisions and amalgamations.
(This note should not be deleted from the certificate submitted)
FORM 1 Application form for permission to downlink TV Channels in India (both News & Current Affairs and Non-News & Current Affairs) (One original and four identical copies separate for each channel).
To, The Secretary, Ministry of Information & Broadcasting, Shastri Bhawan, ‘A’ Wing, New Delhi-110 001.
Subject: Application for permission to ………………………………... (Please mention the purpose of application).
Sir, I hereby submit the following details in support of the eligibility as prescribed in the guidelines for downlinking, in addition to other particulars: PART - A: REQUEST FOR PERMISSION TO DOWNLNK TV CHANNELS (DETAILS OF APPLICANT COMPANY) :
1.
Name of the Applicant Company and Status (Pvt. Ltd./Pub. Ltd.)
2.
Complete Postal Address with Telephone/Fax Nos. E-mail ID (i) Corporate Office/Head Office ii) Registered Office ii) Regional Offices/ Country/ nature of activity
:
:
3.
Address for Correspondence with Telephone/Fax/E-mail
:
4.
Name of Authorised Contact Person, His designation and Telephone/Fax Nos/E-mail ID.
:
5.
Processing fee paid and details of payment.
:
6.
Registration details under : Company’s Act 1956: Incorporation No. and Date (attach a copy of Certificate of incorporation and Memorandum &Articles of Association).
7.
Details of Promoters & Majority Shareholders (Attach a separate sheet giving Name, Address, contact Telephone and equity held in terms of amount and percentage of paid up equity).
8.
Details of the Company
:
8.1
Board of Directors (Attach list of Directors along with bio-data of each Director giving date of birth, place of birth, parentage, nationality, permanent address, residential address, official address, passport number (if any), qualification, experience, parentage etc).
:
8.2
Key Executives: Starting with : CEO/MD, Head of Marketing, Head of Programming etc. (Attach list of Key Executives along with bio-data of each Director giving date of birth, place of birth, parentage, nationality, permanent address, residential address, official address, passport number (if any), qualification, experience, parentage etc.)
(Any change in Board of Directors prior to issue of this permission to be informed immediately to the Ministry. The company shall intimate to the Ministry in case of change of Directors, after issue of permission to obtain their security clearance).(Clause 5.11 of guidelines ).
8.3
Equity
:
Amount (Rs. in lakhs)
(A) Authorised Capital:
:
Amount (Rs. in lakhs) (B) Issued paid up capital
:
As % of Authorised Capital
Amount (Rs. in lakhs)
(C) Classification of equity holding
:
As % of Capital (B)
Paid
up
(i)
Total equity held by Indian Promoters/Majority Shareholders
:
(ii)
Pro rata share of FDI in the Promoters/Majority Shareholders.
:
(iii )
Indian Financial Institutions and Banks. :
(iv) Other Indian Shareholders. : (v)
Percentage of Majority Shareholders’ equity to Total Paid : up Equity net of Banks and Financial Institutions Equity.
(vi) Direct FDI holding (including FIIs,
PIOs, NRsI, etc- give break-up)
( enclose copy of FIPB approval) (vii) Indirect FDI/FII (Pro rata share of
FDI in Indian Promoters majority shareholders) and
:
:
(viii) Foreign
Institutional Portfolio Investments.
Investors/
:
(ix) Total foreign Equity Holdings.
[(vi)+ (vii)+ (viii)]
:
(9)
Net Worth of Applicant Company in prescribed format. : Net Worth to be calculated in accordance with number of channels being downlinked. [Please enclose a copy of the audited balance sheet and Profit & Loss Account for the immediate preceding year and certificate of Net Worth on the basis of these documents by Statutory Audito.r In case the networth certificate is on a date different from end of the financial year, it should be supported by certified balance sheet from the statutory auditor on the date of such certification.
10.
Annual reports and Audited Accounts for the last three years or in the case of a newly incorporated company, balance sheets from the date of incorporation till date certified by the statutory Auditor to support its claim of financial
:
eligibility.]
11.
Major area of activity/ business
:
12.
The number and names of channels being downlinked or proposed to be downlinked. (For each channel details in Part B & C to be provided separately):
Does the Applicant Company hold any other licence from Department of : Telecommunications (DOT) /Department of Information Technology (DOIT)/ Wireless planning and Coordination (WPC) or Ministry of Information and Broadcasting (MIB)? If so, please give details.
13.
14.
Has the Applicant Company made any other application to Ministry of Information and Broadcasting (MIB)? If so, please give details.
:
15. (i)
Has the Applicant Company been denied permission for uplink or downlink of a TV channel at any point of time? If so, please give details.
:
16.
Has the Applicant Company ever been disqualified from permission to uplink or : downlink of a TV channel at any point of time? If so, please give details.
Place: Date:
(Signature of Applicant) [Authorized Signatory of the Company] Name Office Address: Tel./fax No. & e-mail ID:
Company’s Seal
PART - B:
COMMERCIAL & TECHNICAL DETAILS FOR DOWNLNKING A TV CHANNEL
being/
1(i) 1(ii)
Name of the Channel proposed to be, downlinked.
:
Owner of the channel
2.(i) Does the Applicant Company own
the channel being or proposed to be : downlinked or do they have marketing and/ or distribution rights for territory of India? (Please enclose relevant documents in support): Please enclose the Memorandum/ Articles of Association, Marketing/ Distribution Agreement as applicable.
(ii)
In case the Applicant Company has marketing and/ or distribution : rights, do they have the authority to conclude contracts on behalf of the channel for advertisements, subscription and programme content? If yes, please enclose copy of the Agreements.]
(iii )
Whether the channel will be marketed in a particular area or : locality other than in India or whole of India? Please give details. Details of transmission of the channel: Name of satellite hired/ proposed to be hired for uplinking and downlinked the TV channel
3. (i)
:
(ii) (iii )
Orbital location
:
Type and No. of transponder(s) with bandwidth
:
(iv) Signal strength in primary zone over
India
:
(v)
Name of the Company from which the satellite/ transponder is to be : leased.
(vi) Uplink & downlink frequencies.
(Enclose map of footprint of the : satellite proposed to be hired for downlinking)
4. (i)
Name of the country/ location of uplinking: If it is a channel from India, please enclose a copy of the permission for uplinking. Please indicate the name of the teleport approved for providing uplinking facilities and the date of grant of permission for uplinking and period of permission for uplinking.
:
(ii)
If the channel is uplinked from another country, please enclose a
copy of the license/ approval granted by the licensing or regulatory authority of that country and indicate the exact place and country of uplinking. Please also indicate the date of issue of license/ permission and validity.
:
(iii )
Are there any intermediate hops of the uplinked signal before being : downlinked in India, if so do you possess the broadcasting license of the concerned regulatory or licensing authorities of those countries. If yes, please enclose copies of the relevant licenses.
5.
Proposed date of commencement of downlinking. : If the channel is already being downlinked, please indicate date and time since when it is being downlinked in India for public viewership.
6.
Please furnish, technical details such as Nomenclature, make, module, : name and address of the manufacturers of the equipment/instruments to be used for downlinking distribution, the Block schematic diagram of the downlinking and distribution system. (Technical specifications should be furnished in detail and schematic diagram should be channel specific.) Please indicate the name and address of the company or its associate where : the applicant company shall provide to the Govt. the necessary equipment and facilities for continuous monitoring of the broadcast in India and presentation of the recordings of such broadcast for a period of three
7.
months from the date of each broadcast.
8. (i)
The Applicant Company’s year-wise collection for the last three years : of:____________ Advertising revenue from Indian market for the TV channel
(ii)
Subscription revenue from Indian market for the TV channel :
(iii )
Revenue from sale of programme content for other use such as DVD’s/CD’s/ mobile telephone etc.
:
(iv) Please furnish audited copies of :
profit & loss account and The balance sheet of the applicant Company for the last three years or if incorporated later from the date of incorporation.
9. (i)
Please furnish names and addresses of the following:. Distributors of the channel in India and their areas of operations.
:
(ii). MSOs in India who are authorized
downlink and transmit the channel : in India and their areas of operation.
(iii) .
Local cable operators who are authorized to directly downlink and : transmit the channel in India and their areas of operation.
(iv). DTH networks that are authorized to
carry the channel and their areas of operation.
:
(v). Out of the preceding categories,
please indicate the names of those distributors/ DTH operators/ MSOs/ LCOs with whom formal agreements have not been signed and copies filed with TRAI and the reasons thereof.
:
PART C:
1.
For Registration of the TV Channel
:
Name of the Channel
2.
Logo of the channel (Please annex pictorial depiction)
:
3.
Is the name and/ or logo registered under the Trade Marks Act, 1999?
:
4.(a)
Is the name and/ or logo or a part : thereof being used by any other TV channel in India or abroad?
(b)
If so, is the name and/ or logo or a part thereof registered as a trade mark or a brand under the Trade Marks Act, 1999 of India or the corresponding law of the country of origin? And if so, in whose name? (Name attach relevant documents)
:
(c)
If the answer to 4(b) above is yes, is : there an agreement between the name and/ or logo owner and the applicant company for its use in India? Please furnish full details of the agreement.
5
What percentage of the proposed channel time will be utilized for telecasting programme content of the channel owning the registered trade mark (name and/ or logo) to justify its use by the applicant company? Please give full detail of the content sharing arrangements with relevant documents.
:
6
Category of Channel: Please tick mark the category to which the proposed channel belongs:
:
(a)
General News & Current Affairs Channel.
(b)
General Entertainment Channel (with serials, interactive programmes, music, movies, lifestyle, travel & tourism and cultural activities etc.)
:
(c)
Special or Niche Channel e.g. Sports, Environment, Science, Technology, Religion.
:
7.
In case of (c) please specify the special subject for the channel.
:
8.
The language in which the proposed channel will be telecast in India.
:
9.
In the case of general News & Current Affairs Channel, please furnish the following information: Where is the content of this News & Current Affairs channel collated and uplinked from, alongwith advertisements? Does the same content, including advertisements get beamed into other countries? It so, please name those countries.
:
(i)
ii)
:
(iii)
If answer to (ii) is no, please clarify whether there is a customized signal for India.
:
(iv)
What is the proportion of : advertisements carried as compared to the total programming time in 24 hrs.?
(v)
What is the proportion of Indian : advertisements? Note: Indian advertisements means advertisements made in India, intended only for Indian viewers and of either an Indian or Foreign Product.
(vi)
What proportion of the channel’s programming in 24 hours, is carrying Indian/ India specific content i.e. content intended for India, based on Indian events?
:
(vii
Whether the channel can be called a
:
)
standard international channel? If yes, please provide an indicative schedule in support.
(viii )
Are you seeking a waiver/ : modification of Clause 2.4.1?
(ix)
If yes, please indicate your : arguments in support with full data on proportion of international and Indian programme content and advertisements and subscription and advertisement revenues derived therefrom.
10. (i)
Is the channel Free to Air or pay channel? : If the channel is a pay channel, please confirm that the decoders are being supplied or shall be supplied only to registered cable operators/ MSOs and DTH operators.
(ii)
:
(iii)
Is the channel signal digital or analogue? : Who makes or will make the final editorial decisions about : programming and where are they made or going to be made? Indicate the name, address, and contact number etc. of the individual so responsible.
11. (i)
(ii)
Is there any internal mechanism to regulate content telecast on the
:
channel? If so, please explain in detail. How will the channel ensure the adherence to the Programme and Advertising Code?
(iii)
Is there any mechanism to receive complaints and redress grievances of the public regarding content of the channel? Please explain in detail.
:
12
Contact person: Give the name of the person who will be the applicant’s primary point of contact with Ministry of Information & Broadcasting for compliance purposes. His address, email, phone number, fax number etc. should be given. The authority letter issued by the Company be annexed.
:
13
Period for which registration of the channel is applied for. (The period shall not be more than the period for which the applicant company has the marketing/distribution rights of the channel for India).
:
GENERAL Whether declaration in Form 1A and 1B enclosed. (Yes/No) and also mention the details. Declaration: 1. We hereby apply for the grant of a registration for the TV channel (as given in Part B & C) to be downlinked and distributed in India as described above and declare that the information given in this application form, to the best of my knowledge and belief, is correct.
2.
We hereby apply for grant of permission to downlink the TV channel as mentioned in our application above and declare that the information given in this application form, to the best of my knowledge and belief is correct. We also undertake to enter into an Agreement for Grant of Permission (GOPA) with Ministry of I&B for each and every channel being downlinked by us. We hereby affirm that we will abide by all terms and conditions of registration and rules and regulations prescribed by the Government of India under Downlinking Guidelines the laws of the land and any other broadcasting law to be enacted in the future.
3.
Place: Date:
(Signature of Applicant) [Authorized Signatory of the Company] Name Office Address: Tel./fax No. & e-mail ID:
Company’s Seal
List of Enclosures attached with the Application Please tick against the following documents enclosed with the application (as applicable indicating page numbers): (13) (14) (15) (16) (17) (18) (19) (20) An attested copy of Applicant Company’s Registration Certificate under Company’s Act 1956. A copy of Certificate of incorporation; Memorandum & Articles of Association, with copy of form 2, form 5 and form 32 submitted to ROC. Marketing/ Distribution Agreement, these should be in legal format, notarized, and binding in nature strictly in accordance with clause 1.3 and 1.4 of the guidelines. A note on conformity to be included and relevant clauses in these agreements highlighted.. Shareholding Pattern as per Table 1. FIPB approval. A separate sheet giving Name, Address, contact Telephone of Promoters & Majority Shareholders and equity held in terms of amount and percentage of paid up equity. A list of Key Executives along with bio-data of each Director giving date of birth, place of birth, parentage, nationality, permanent address, residential address, official address, passport number (if any), qualification, experience, parentage etc. Audited Balance sheet and Profit & Loss Account for the last 3 financial years and Certificate of Net Worth by a Chartered Accountant on the basis of these documents. (8.1) In case the networth certificate is on a date different from end of the financial year, it should be supported by certified balance sheet from the statutory auditor on the date of such certification.
(21) (22)
(23) (24) (25) (26) (27) Place Date
(8.2) In case shares have been allotted on basis of valuation of a property / equipment, then valuation certificate from an approved valuer should also be enclosed. Details of map of footprint of the satellite proposed to be hired/ being used for downlinking (channel wise). Copy of the permission for uplinking the channel. Copy of the license / approval granted by the licensing or regulatory authority of that country (channel wise). Uplink and downlink license issued in favour of teleport servise provider alongwith copy of uplink service agreements, copy of broadcasting license to run an international licenseable television content service in favour of channel owner. Copy of relevant documents of Applicant Company evidencing ownership of channel/s being or proposed to be downlinked or marketing and/or distribution rights for territory of India for each channel. Copy of documents in support of a News and Current Affairs Channel fulfilling the eligibility criteria prescribed in the guidelines. An indicative programme schedule. Affidavits in Form 1A & 1B. Any other: ………………………………… : : (Signature of Applicant) Name Office Address:
[Note: In case of non-furnishing of complete information, the application is liable to be rejected and returned to the company forthwith.]
All pages of the application to be certified by the authorized signatory with seal of the company and page numbered in reverse order (last page to be numbered as 1).
ANNEXURE TO FORM 1. FORMAT FOR SHAREHOLDING PATTERN TO BE FURNISHED ALONG WITH APPLICATION TABLE-1 SHAREHOLDING PATTERN OF APPLICANT COMPANY M/s ______________________ AS ON __________ FACE VALUE OF THE SHARE RS. __________________
S.No.
Category of Shareholders.
Share Holding Direct Investment No. of % of total Shares paid up shares No. of Shares Portfolio Investment % of total paid up shares
1. 2. 3. 4. 5. 6. 7. 8.
Indian individual Indian company Foreign individual Foreign company NRI FII PIO Any other
Provide complete details as required under 8.3 of Part A.
Signature of Company Secretary with seal
FORM-1A AFFIDAVIT/UNDERTAKING (on Rs 20 Stamp Paper & Notarized) WHEREAS I, Shri ………………… S/o Shri _________________in the capacity of …………..(designation) have applied to the Ministry of Information & Broadcasting on behalf of M/s……………………….for approval/permission for downlinking of TV channel ………………. in ……………….. (place). WHEREAS as a condition precedent to above approval/permission, I am required to abide by the Programme Code and Advertising Code prescribed under the cable Television Network (Regulation) Act, 1995 and the Rules passed thereunder. WHEREAS I have read the abovementioned Programme Code and Advertising Code. WHEREAS I understand that the permission/approval so granted can be withdrawn, if I fail to abide by the said Programme & Advertising Codes. Now, therefore, I hereby undertake as follows: i) I undertake to abide by the Programme Code and Advertising Code laid down by the Ministry of Information & Broadcasting, Government of India from time to time. ii) I undertake to furnish periodic information relating to public complaints, programme contents and any other information in respect of above-mentioned TV channels as may be laid down/asked for by the Ministry of Information & Broadcasting from time to time. iii) I undertake to provide the necessary equipment and facility for continuous monitoring of the broadcaster service at my own cost and preserve the recordings of broadcasting materials for a period of 3 months from the date of broadcast and produce the same to Ministry of Information & Broadcasting or to its authorized representative as and when required.
Signature Place: Name Designation
Date :
Seal of Company FORM- 1B AFFIDAVIT/UNDERTAKING [For Entertainment TV Channel/News & Current Affairs TV Channel] (on Rs 100 Stamp Paper & Notarized)
WHEREAS M/s.--------------------------------------------------------------have applied to the Ministry of Information & Broadcasting for approval/permission for downlinking of a TV channel -------------------------------------. WHEREAS information have been provided in Form 1 supported by affidavit in Form 1A and declarations in Table I along with other related documents (i.e. Memorandum and Articles of Association, project report, satellite lease agreement, etc.) WHEREAS we understand that the information given in the application and in Form 1A 1C and Table I and other related documents form a composite part of this permission. We submit that our channel is purely an Entertainment TV Channel/News & Current Affairs TV Channel and have/does not have any news or current affairs based programme. We hereby undertake that in accordance with the guidelines for downlinking of TV channels, we will seek fresh permission from the Govt., should there be a change in the Programme content of the channel to include news/current affairs along with a change in the ownership pattern to include any element of foreign equity/management control and that prior information of any such proposed change shall be given to the Government. We also undertake to supply information, in the format as prescribed by the Govt. from time to time.
For and on behalf of M/s_______________________ Authorized Signatory Seal of the Company Date : Place:
Format for the Certificate of Net Worth by the Statutory Auditors
We have audited the Books of Accounts of M/s._______________________ for the financial year ended March 31,20__/ period ended dd/mm/year and certify that the Net Worth of M/s.____________________________________________________ as on March 31,20__/as at dd/mm/year is Rs._______________(Rupees in words _______________________________________________________) We further certify that the Networth of M/s.____________________ (Name of the company) is computed as follows.
Sl.No.
Particulars
Amount in Rs.lacs
1. Book Value of assets 2. Book value of fictitious and intangible assets 3. Liabilities other than owner’s funds 4. Net Worth {1-(2+3)} Place/date
statutory auditors
Notes 3. “Net Worth” has been defined in the Companies Act under section 2(29A) as follows. ‘net worth means the sum total of the paid-up capital and free reserves after deducting the provisions or expenses as may be prescribed. Explanation for the purpose of this clause, “free reserves” means all reserves created out of the profits and share premium account but does not include reserve created out of revaluation of assets, write back of depreciation, provisions and amalgamations. 4. Networth The excess of the book value of assets (other than fictitious assets) of an enterprise over its liabilities. “Book value of assets” The amount at which an item appears in the books of account or financial statements. It does not refer to any particular basis on which the amount is determined. Eg. Cost, replacement value etc. “Fictitious Assets” Items grouped under the assets in a balance sheet which has no real value (eg. The debit balance of the profit and loss account) “Liabilities” The financial obligation of an enterprise other than owner’s funds.
Owner’s funds means paid-up capital and free reserves Explanation for the purpose of this clause, “free reserves” means all reserves created out of the profits and share premium account but does not include reserve created out of revaluation of assets, write back of depreciation provisions and amalgamations.
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