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Sun TV Network Ltd.

BSE: 532733 | NSE: SUNTV |

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Series: EQ | ISIN: INE424H01027 | SECTOR: Media & Entertainment

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Annual Report

For Year :
2021 2018 2017 2016 2015 2014 2013 2012 2011

Director’s Report

Your Directors are pleased to present the Thirty Sixth Annual Report and Audited Financial Statements of the Company for the financial year ended March 31,2021.

FINANCIAL HIGHLIGHTS

The financial highlights for the year ended March 31,2021 are given below:

(Rs. in Crore)

Standalone

Consolidated

Particulars

for the year ended

for the year ended

March 31,

March 31,

March 31,

March 31,

2021

2020

2021

2020

Total Income

3388.03

3,653.35

3483.73

3,780.50

Total Expenditure

1453.22

1,855.47

1536.29

1,956.88

Profit before share of profit / (Loss) of Joint Ventures and tax

1934.81

1,797.88

1947.44

1,823.62

Share of profit / (Loss) from a joint venture

-

-

(6.42)

(4.17)

Profit before tax

1934.81

1,797.88

1941.02

1,819.45

Income tax expense

414.40

426.05

415.78

433.96

Profit for the year

1520.41

1,371.83

1525.24

1,385.49

Profit for the year attributable to:

- Owners of the Company

1525.03

1,385.16

- Non - Controlling Interest

-

-

0.21

0.33

Other Comprehensive Income

Net other comprehensive income not to be reclassified to profit or loss in subsequent periods

1.53

(0.54)

1.61

0.18

Other Comprehensive Income for the year attributable to:

- Owners of the Company

1.58

0.18

- Non - Controlling Interest

-

-

0.03

0.00

Total comprehensive income for the year

1521.94

1,371.29

1526.85

1,385.67

Total Comprehensive Income for the year attributable to:

- Owners of the Company

1526.61

1,385.34

- Non - Controlling Interest

-

-

0.24

0.33

Total comprehensive income for the year

1521.94

1,371.29

1526.85

1,385.67

Retained Earnings at the beginning of the year

4471.43

4,287.86

4571.45

4,373.83

Interim Dividend

197.04

985.21

197.04

985.21

Tax on Interim Dividend

-

202.51

-

202.51

Retained Earnings at the end of the year

5796.33

4,471.43

5901.05

4,571.45

Earnings Per Share (Face Value Rs.5/-)

38.58

34.81

38.70

35.16

SUMMARY OF OPERATIONS

The Total Income for the year ended March 31,2021 was Rs. 3,388.03 crore as against Rs. 3,653.35 crore during the previous year ended March 31, 2020. Profit Before Tax was Rs. 1934.81 crore as against Rs. 1,797.88 crore in the previous year. Profit After Tax was Rs. 1,520.41 crore as against Rs. 1,371.83 crore in the previous year.

BUSINESS OVERVIEW

Your Company, one of the largest Television Broadcasters in India operating Satellite Television Channels across five languages of Tamil, Telugu, Kannada, Malayalam and Bangla and presently airing FM radio stations across India continues to have sustained and increased viewership of its channels with Sun TV being the most watched channel in India. The Company produces its own content / acquires the related rights. The Company has the license to operate an Indian Premier League (‘IPL’) franchise “Sun Risers Hyderabad”.The Company also operates an OTT platform “SUNNXT “. There is no change in the nature of business of the Company.

DIVIDEND

The Board of Directors during the financial year ended March 31,2021 have declared Interim Dividend of Rs. 5.00 per equity share (100%) of face value of Rs. 5.00 each declared on February 8, 2021 and have not recommended any Final Dividend. The dividend payout would result in a total dividend of 100%, i.e., Rs. 5.00 per equity share of face value of Rs. 5.00 each for the financial year ended March 31,2021. (Prev. Year 500%, i.e., Rs. 25.00 per equity share of face value of Rs. 5.00 each). The Payout ratio for the current year stood at 12.96%.

TRANSFER TO RESERVES

During the financial year 2020-21, no amount has been transferred to the General Reserve. DIRECTORS’ RESPONSIBILITY STATEMENT

In terms of Section 134 of the Companies Act, 2013 your Directors confirm that, to the best of their knowledge and belief:

♦ In the preparation of the Statement of Profit & Loss for the financial year ended March 31,2021 and Balance Sheet at that date (“financial statements”), the applicable accounting standards have been followed along with proper explanation relating to material departures.

♦ Appropriate accounting policies have been selected and applied them consistently and made such judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at the end of the financial year and of the profit of the Company for that period;

♦ Proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. To ensure this, the Company has established internal control systems, consistent with its size and nature of operations. In weighing the assurance provided by any such system of internal controls its inherent limitations should be recognized. These systems are reviewed and updated on an ongoing basis. Periodic internal audits are conducted to provide reasonable assurance of compliance with these systems. The Audit Committee meets at regular intervals to review the internal audit function;

♦ The financial statements have been prepared on a going concern basis.

♦ Proper internal financial controls were in place and that the financial controls were adequate and were operating effectively.

♦ Proper systems are in place to ensure compliance of all laws applicable to the Company; CORPORATE SOCIAL RESPONSIBILITY (CSR)

In accordance with Section 135 of the Companies Act, 2013, the Company has constituted a Corporate Social Responsibility Committee. The CSR Committee of the Company has approved a CSR policy. The Annual report on CSR activities as required under Companies (Corporate Social Responsibility Policy) Rules, 2014 has been appended in Annexure I to this Report. Further details relating to the Corporate Social Responsibility Committee are provided in the Corporate Governance Report, which forms part of this report.

Your Company has two subsidiaries viz., M/s. Kal Radio Limited and M/s. South Asia FM Limited (SAFM). SAFM is a subsidiary which has been classified as Joint Venture (JV) as per Ind-AS in financial statements of the Company and accounted as per applicable Ind-AS accounting standard framework. There has been no material change in the nature of business of the subsidiaries. Shareholders interested in obtaining a copy of the audited annual accounts of the subsidiary companies may write to the Company Secretary. In terms of proviso to sub section (3) of Section 129 of the Act, the salient features of the financial statement of the subsidiaries is set out in the prescribed Form AOC - 1 as Annexure II which forms part of the annual report.

TRANSACTIONS WITH RELATED PARTIES

All Related Party Transactions entered during the year were in Ordinary Course of the Business and at Arm’s Length basis. No Material Related Party Transactions, i.e. transactions exceeding 10% of the annual consolidated turnover as per the last audited financial statement, were entered during the year by your Company. Accordingly, the disclosure of Related Party Transactions as required under Section 134(3)(h) of the Companies Act, 2013, in Form AOC - 2 is not applicable.

The Policy on Materiality of Related Party Transactions and on dealing with Related Party Transactions as approved by the Board is put up on the Company’s website and can be accessed at www.suntv.in.

AUDITORS AND SECRETARIAL AUDITORS

At the 32nd Annual General Meeting (AGM) held on September 22, 2017 the shareholders had approved the appointment of M/s. Deloitte Haskins & Sells LLP, Chartered Accountants, (ICAI Firm Registration No: 117366W/W-100018), as the Statutory Auditors of the Company for a term of five years, i.e. till the conclusion of 37th AGM to be held in the year 2022. Pursuant to the amendment of Section 139 of the Companies Act, 2013, the requirement of seeking ratification for continuance of the Statutory Auditors at every AGM is no longer required and accordingly the Notice of ensuing AGM does not include the proposal of seeking shareholder’s ratification for continuance of Statutory Auditors.

As per the provisions of Section 204 of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed Smt. Lakshmmi Subramanian, Senior Partner of M/s. Lakshmmi Subramanian & Associates, a firm of Company Secretaries in Practice to undertake the Secretarial Audit of the Company. The Secretarial Audit Report for the financial year under review is annexed herewith as Annexure III.

The unmodified / unqualified report of Statutory Auditors and Secretarial Auditors forms part of this report.

INTERNAL AUDITORS

M/s. K. Ramkrish & Co., Chartered Accountants, Chennai has been re-appointed as an Internal Auditors of the Company for the financial year 2021-22. The Audit Committee of the Board and the Statutory Auditors are periodically apprised of the Internal Audit findings and corrective actions are taken.

COST AUDIT

The Company maintains the Cost Records as specified by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013. In pursuance of Section 148 of the Companies Act, 2013 read with Companies (Cost Records and Audit) Rules, 2014 M/s. S. Sundar & Associates, Cost Accountants, was engaged to carry out Audit of Cost Records of the Company for the Financial Year 2020-21. Requisite proposal seeking ratification of remuneration payable to the Cost Auditor forms part of the notice of ensuing Annual General Meeting.

DETAILS OF FRAUDS REPORTED BY AUDITORS

During the year under review, the Statutory Auditors, Cost Auditors and Secretarial Auditor have not reported any instances of frauds committed in the Company by its Officers or Employees to the Audit Committee under section 143(12) of the Companies Act, 2013, and rules made thereunder.

As per Regulation 16 of the Listing Regulations, your Company has no material subsidiary company, whose turnover or net worth exceeds 10% of the consolidated turnover or net worth respectively of your Company and its subsidiaries in the immediately preceding accounting year.

TRANSFER TO THE INVESTOR EDUCATION AND PROTECTION FUND

In terms of Section 125 (2) of the Companies Act, 2013, an amount of Rs. 3,28,475/- being unclaimed dividend pertaining to the financial year 2012-13 & 2013-14, had been transferred during the year to the Investor Education and Protection Fund established by the Central Government.

DIRECTORS

None of the Company''s directors are disqualified from being appointed as a director as specified in Section 164 (2) of the Companies Act, 2013.

RETIREMENT BY ROTATION

As per the provisions of the Companies Act, 2013, Mr. R. Mahesh Kumar, Managing Director of the Company will retire at the ensuing AGM and being eligible, seeks re-appointment. The Board of Directors recommend his re-appointment.

The information on the particulars of director eligible for re-appointment in terms of Regulation 36(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 has been provided in annexure to the notice convening the Annual General Meeting.

CHANGES IN BOARD OF DIRECTORS

There were no changes in the composition of the Board during the year 2020-21.

KEY MANAGERIAL PERSONNEL

Pursuant to the provisions of Section 203 of the Companies Act, 2013 the Key Managerial Personnel of the Company are Mr. R. Mahesh Kumar, Managing Director, Mr. V.C. Unnikrishnan, Chief Financial Officer and Mr. R. Ravi, Company Secretary.

SHARE CAPITAL

During the year, there were no changes in the Capital Structure of the Company.

CHANGES IN MEMORANDUM AND ARTICLES OF ASSOCIATION:

During the year, there were no alterations made in the Memorandum and Articles of Association of the Company.

CORPORATE GOVERNANCE REPORT, MANAGEMENT DISCUSSION & ANALYSIS REPORT AND OTHER INFORMATION REQUIRED UNDER THE COMPANIES ACT, 2013 AND SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015

As required under Regulation 34 and Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred to as “Listing Regulations”) with the Stock exchanges, we continue to be a pioneer in bench marking our corporate governance policies with the best in the media industry. The report on Management Discussion and Analysis, Corporate Governance as well as the Practicing Company Secretaries’ certificate regarding compliance of conditions of Corporate Governance forms part of the Annual Report.

BUSINESS RESPONSIBILITY REPORT

As stipulated under the Listing Regulations, the Business Responsibility Report describing the initiatives taken by the Company from an environmental, social and governance perspective is attached as a part of the Annual Report and the said report will also be available on the website of the Company.

PARTICULARS OF EMPLOYEES

Sun TV Network Limited had 1,188 employees as of March 31,2021 (previously 1,352). In accordance with the provisions of Section 197(12) of the Companies Act, 2013 read with Rule 5 of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 the required information is provided in the Annual Report which forms part of this Report. However, as per the provisions of Section 136 of the Companies Act, 2013, the Annual Report is being sent to all the Shareholders of the Company excluding the aforesaid information. The said information is available for inspection at the registered office of the Company during working hours.

SIGNIFICANT / MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS

There were no significant or material orders passed by the regulators or courts or tribunals impacting the going concern status and Company’s operations in future.

MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY BETWEEN THE END OF THE FINANCIAL YEAR AND THE DATE OF THE REPORT

There were no material changes and commitments affecting the financial position of the Company occurred between the end of financial year to which this financial statements relate to and the date of this Report.

ANNUALRETURN

In accordance with the provisions of the Companies Act, 2013, the Annual Return in the prescribed Format is available at the website of the Company www.suntv.in.

NUMBER OF MEETINGS OF THE BOARD

During the financial year, Four Board Meetings were held. The details of meetings are furnished in the Corporate Governance Report. The intervening gap between the Meetings did not exceed one hundred and twenty days.

INDEPENDENT DIRECTORS’ DECLARATION

All Independent Directors have given declarations that they meet the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013 and Regulation 16(1)(b) of the Listing Regulations.

POLICY OF DIRECTORS’ APPOINTMENT AND REMUNERATION

The Company’s policy on Director’s appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a director and other matters provided in Section 178(3) of the Companies Act, 2013 is available at the Company’s website www.suntv.in. Further, information about elements of remuneration package of individual directors are provided in the extract of Annual Return Form MGT - 9.

BOARD DIVERSITY

The Company recognizes that a Board of diverse and inclusive culture is integral to its success. Ethnicity, age and gender diversity are areas of strategic focus to the composition of our Board. The Board considers that its diversity, including gender diversity, is a vital asset to the business. The Board has adopted the Board Diversity policy which can be accessed at www.suntv.in.

COMMITTEES OF THE BOARD

The details pertaining to the composition of the various Committees of the Board of Directors are included in the Corporate Governance Report, which forms part of this report.

PARTICULARS OF LOANS, GUARANTEES AND INVESTMENT

Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statements (Note No. 7&9).

INTERNAL FINANCIAL CONTROL

The information about internal financial controls is set out in the Management Discussion & Analysis Report, which is attached and forms part of the report.

PUBLIC DEPOSITS

Your Company has not accepted any Deposits from the public in terms of Section 73 of the Companies Act, 2013 during the financial year under review.

RISK MANAGEMENT

As per the provisions of Section 134 of the Companies Act, 2013 and Regulation 21 of the Listing Regulations, the Board has constituted a Risk Management Committee comprising of Independent Directors. The Risk Management is overseen by the Risk Management Committee of the Company on a continuous basis. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuous basis. For details, please refer to the Management Discussion and Analysis report which form part of the Board’s Report.

FAMILIARIZATION PROGRAMME FOR INDEPENDENT DIRECTORS

The Company has practice of conducting structured induction and familiarization programme of the independent directors as detailed in the Corporate Governance Report which forms part of the Annual Report.

VIGIL MECHANISM/WHISTLE BLOWER POLICY

As per Section 177(10) of the Companies Act, 2013 and Regulation 22 of the Listing Regulations, the Company has a vigil mechanism to deal with instance of fraud and mismanagement, if any. The details of policy are explained in the Corporate Governance Report. Policy on Vigil Mechanism is hosted on the website.

PERFORMANCE AND FINANCIAL POSITION OF SUBSIDIARIES

The financial position of each of the subsidiaries is provided in a separate statement AOC -1, attached to the Financial Statement pursuant to first proviso of Section 129(3) of the Companies Act, 2013 as Annexure II.

INDEPENDENT DIRECTORS’MEETING

As per Regulation 25 of the Listing Regulations, a separate meeting of Independent Directors was held during the financial year. The detailed information is given in the Corporate Governance Report.

BOARD EVALUATION

In terms of applicable provisions of the Companies Act, 2013 and SEBI Listing Regulations, the Board has carried out a formal annual evaluation of its own performance, the directors individually as well as the functioning of its committees. A detailed explanation has been given in the Corporate Governance Report.

POLICY ON INSIDER TRADING

Pursuant to the provisions of the SEBI (Prohibition of Insider Trading) Regulations, 2015, as amended the Code of Conduct to regulate, monitor and report trading by Designated Persons and their Immediate and the policy for fair disclosure of unpublished price sensitive information has been made available on the Company’s website (www.suntv.in)

POLICY ON PREVENTION, PROHIBITION AND REDRESSAL OF SEXUAL HARASSMENT AT WORKPLACE

The Company has zero tolerance for sexual harassment at workplace and has adopted an Anti-Sexual Harassment policy in line with the provisions of the Sexual Harassment of Women at workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules thereunder. During the year under review, no complaints on sexual harassment were received. The Company has constituted Internal Complaints Committee with four members to consider and resolve sexual harassment complaints. The Committee met once in the financial year ended March 31,2021.

DETAILS OF APPLICATION MADE OR ANY PROCEEDING PENDING UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016 DURING THE YEAR.

No applications have been made and no proceedings are pending against the Company under the Insolvency and Bankruptcy Code, 2016.

INFORMATION AS REQUIRED UNDER SECTION 134(3)(m) OF THE COMPANIES ACT, 2013 READ WITH RULE 8(3) OF THE COMPANIES (ACCOUNTS) RULES, 2014(A) CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION

The Company is engaged in Satellite Television Broadcasting operations and the information, as intended under Section 134 (3)(m) does not arise. The Company uses the latest high definition (HD) digital technology in broadcasting its programs. The outdated technologies are constantly identified and updated with latest innovations.

(B) FOREIGN EXCHANGE EARNINGS AND OUTGO

(Rs. in Crore)

PARTICULARS

March 31,2021

March 31,2020

Foreign Exchange Earnings

187.32

211.58

Foreign Exchange Outgo

88.61

82.48

CONSOLIDATED FINANCIAL STATEMENTS

As required by Indian Accounting Standard - Ind-AS 110 & Ind-AS 27 on Consolidated Financial Statements issued by The Institute of Chartered Accountants of India, the Audited Consolidated Financial Statements of the Company are attached. The Audited Consolidated Financial Statements also account for the non-controlling interest of your Company’s subsidiary.

COMPLIANCE WITH SECRETRIAL STANDARDS

The Company complies with all applicable Secretarial Standards issued by the Institute of Company Secretaries of India.

CERTIFICATIONS

The Managing Director and the Chief Financial Officer have submitted a certificate to the Board regarding the financial statements and other matters as required under Regulation 17(8) of the Listing Regulations and the Managing Director has confirmed the Code of Conduct as envisaged in Listing Regulations. In terms of Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, an Independent professional has given a Certificate on Corporate Governance Compliance and a Certificate stating that none of the Directors are disqualified, which forms part of the report.

APPRECIATION AND ACKNOWLEDGEMENT

Your Directors take this opportunity to place on record their deep appreciation of the dedication, hard work, solidarity, co-operation, support and commitment of employees at all levels in maintaining the sustained growth of your Company and remain in the forefront of media and entertainment business.

Your Directors thank and express their gratitude for the support and co-operation received from the Central and State Governments - mainly the Ministry of Information and Broadcasting and the Department of Telecommunication and other stakeholders including viewers, producers, vendors, financial institutions, banks, investors, service providers as well as regulatory and governmental authorities and stock exchanges, for their continued support.

On behalf of the BoardPlace : Chennai Kalanithi Maran

Hato Aunuct f!hairman

Director’s Report