-: CAPSTONE EXERCISE :-

A STUDY OF RADIO MIRCHI’S FUTURE GROWTH

INTERIM REPORT

SUBMITTED TO

Dr. V.S. Pai

SUBMITTED BY

Group 8

Alkama Raj (06)

Amit Kumar Gupta (08)
Mohd. Imran (41)
Shashank Kulshrestha (59)

FACULTY GUIDE

Prof. S. Anant Ram

KIRLOSKAR INSTITUTE OF ADVANCED MANAGEMENT STUDIES

2008-2010
 TABLE OF CONTENTS
Page No.

1. Abstract 2

2. Objective of the Study 3

3. Methodology 4

4. Some identified Problems 5

5. Brief about the Industry 7

6. Brief about the Company 8

7. Environmental Analysis

I. External Environment (PEST Analysis) 9

II. Competitive Environment 10

III. Internal Environment (SWOT Analysis, GE Matrix) 10

8. Description and analysis of the identified problems

I) Finance Problems 12

II) Human Resource Problems 17

III) Marketing Problems 19

IV) Operations Problems 21

9. Limitations of the Study 22

10. References 23

11. Appendices 24

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 INTERIM REPORT

ABSTRACT

This study is done for Radio Mirchi 98.3FM as a part of our Capstone Exercise. In this study we have
tried to find out the existing problems in the company, which can effect the company in the future.
For this firstly we analysed the whole Radio industry in India, then studying and analyzing various
factors which effect the company, did the various Environmental Analysis and then we tried to figure
out some of the problems.
Then we have done an integrated analysis of those problems and found out how these problems can
impact the functioning of the total enterprise.
We also researched whether the company has done something to counter those problems or the
problems are left unsolved.
Substantial opportunities exist to tap into the market of Global News and International market. The
advantage of this opportunities influence the behavior of target market in such a way that will increase
the sales of Radio Mirchi even more.
The Radio Industry and the market profile is refined by doing loads of research from internet to know
the actual market share, attitudes and behaviors towards the music and benefits provided by the
company.
However, we have identified and analysed the problems in this Interim Report but the detailed
solutions and suggestions by the group involving all the aspects will be covered in the Final Report of
this study.

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OBJECTIVE OF THE STUDY

The various Objectives of this project are :-

 To study the present scenario of the Radio industry.

 To identify the present problems, which are proving to be a bottleneck for the industry.

 To find new business opportunities in small towns and big semi-urban areas in India for Radio

Mirchi.

 To develop new strategies for maintaining /sustaining the growth for Radio Mirchi.

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METHODOLOGY

Objective

To Study Radio Mirchi’s future growth.

Research Design

All the major research and information is collected from internet. No field work was done but some of
the Managers and Station Heads were contacted through LinkedIn, e-mails & Phone call, which helped
the group to know how the company is working to solve the problems identified and they also
promised their constant support throughout out project.
However, if required the group will also do primary research for completing the final report on this
study.

Literature Review:
• Through articles and news about the company available on internet.

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SOME IDENTIFIED PROBLEMS

We as a group did a analysis the whole Radio industry in India, then studying and analyzing various
factors which effect the company, did the various Environmental Analysis and then we tried to figure
out some of the problems.

Problems in the area of Finance :-

• Too much of Loans taken by the company.

• Too much money invested in deals that didn’t work.
• Profits of the Company has started drying down and even it has started reporting losses.

Problems in the area of Human Resource :-

• Problems due to cost cutting and rightsizing of the company.

• Employee turnover is high as compare to others . It is not able to retain their existing
employees.
• Due to low pay packages company is not able to attract talent from the market. Their offer are
not upto the mark of market and competitors.
• Employees not enough motivated to serve their loyalty to the companies.

Problems in the area of Marketing :-

• It is the market leader but still facing threat from government stations like AIR FM AND FM
GOLD.

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 • High threat from all private music station, specially from fever 104 FM, 93.5 Red FM, 91.1
Radio city.
• Listener faces major distraction from ad aired in between the show.

Problems in the area of Operations :-

• Company could not spends on technological absorption, adaptation and innovation due to
economic slowdown of last year.
• Company could not spends on Research & development.

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BRIEF ABOUT THE RADIO INDUSTRY

Radio has been the most cost effective source of entertainment in India for a long time. For a long
time, the radio industry was dominated by the state broadcaster- All India Radio. However, the radio
sector has been gradually liberalized and has been opened for private and foreign investment. Radio
industry recorded an impressive performance in 2007, having recorded a growth of 24 per cent over the
previous year and is estimated at Rs. 6.2 billion in 2007, up from Rs. 5 billion in 2006. In the last four
years 2004-07, the radio industry recorded the second highest cumulative growth of 37 per cent on an
overall basis after online advertising. The radio industry is projected to grow to Rs. 17 billion by 2011,
implying a 28% CAGR over the next five years. ENIL currently operates radio stations under the brand
name ‘Radio Mirchi’ in 25 cities.

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BRIEF ABOUT THE COMPANY

HISTORY

The original avatar of Radio Mirchi was Times FM. Radio Mirchi began operations in 1993 in Indore.
Until 1993, All India Radio or AIR, a government undertaking, was the only radio broadcaster in India.
The government then took the initiative to privatize the radio broadcasting sector. It sold airtime blocks
on its FM channels in Indore, Hyderabad, Mumbai, Delhi, Kolkata, Vizag and Goa to private
operators, who developed their own program content. The Times Group operated its brand, Times FM,
till June 1998. After that, the government decided not to renew contracts given to private operators.

FIRST ROUND OF LICENSES

In 2000, the government announced the auction of 108 FM frequencies across India. ENIL won the
largest number of frequencies, and thus started its operations under the brand name Radio Mirchi.

SECOND ROUND OF LICENSES

In January 2006, Radio Mirchi bagged 25 frequencies in the second wave of licences that were issued
by the Government of India. This pushes the Radio Mirchi presence in 32 centers. In the first wave of
launches, Indore was the first city in India having grade of first private radio channel.Times decided to
start radio channel to address the mass audience as advertisers can be attracted by showing a low cost
per thousand.

AREAS OF OPERATION
Currently, Radio Mirchi has a presence in more than 33 cities, including the 6 metros of India and
Radio Mirchi is the costliest station in India as they charge more than double of the competition.Radio
Mirchi believes premiumness can be achieved by charging more from the clients.

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ENVIRONMENTAL ANALYSIS

I. EXTERNAL ENVIRONMENT

PEST ANALYSIS

POLITICAL
 To enter in the industry, high one time entry fee has to be given
 There is no FDI allowed in this sector
 Up to 15 % annual hike In licensee fee
 Only 10 year of license is valid.

ECONOMIC
 RJ’s mainly attracted by package that has been offered to them by competitors.

SOCIAL
 Showing responsibility towards various NGO
 Help in June 2005 Mumbai flood.

TECHNOLOGICAL
 Before 2000, there were only two music stations, but after that radio industry came up with
private Channels with different frequencies. Today we have 10 music stations.
 Internet radio is introduced.
 Modern equipment and highly technical transmitters are used
 Visually appealing materials are also associated

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II. COMPETITIVE ENVIRONMENT

Radio Mirchi’s high end competitor – FEVER 104 FM- was evaluated on several key factors, such as
type of music they both play, promotional activities, product offering and overall presence in the
competitive arena.
Radio Mirchi is facing a high competition from FEVER 104FM. Fever 104 is just 2yr Old and it is
already creating greater threat for other music stations including Radio Mirchi.
Fever 104 is a brand owned by Hindustan Times Group. Basically it is handled by HT Music and
Virgin Radio. The main advantage of FEVER is that, apart from Hindi music, they also play Pure
English music, which is automatically becomes threat to Radio Mirchi.
But the competition from other music stations is quite low. Secondly, the advertisers and other brands
that associated with Radio Mirchi are loyal to them. Plus, Almost 53 per cent of daily listeners of
Radio Mirchi choose not to tune in to any other radio station. That makes the market environment
attractive for Radio Mirchi.

III. INTERNAL ENVIRONMENT

SWOT ANALYSIS

STRENGTHS
 Radio Mirchi known for giving superior quality music and benefits to their customers.
 It delivers the best combination of innovative content and interesting initiatives.
 Serve each and every section of public starting from the children to 70+ aged.
 According to the latest listenership figures released by IMRB International's Media & Panel
Unit, confirms Radio Mirchi as the leading FM Radio station ahead of Red FM and Radio City.
With 12.1 laky daily listeners, Radio Mirchi leads with a 72 per cent share of the market.

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  MRB conducts the in-car listening research every fortnight in Delhi, and findings indicate that
Radio Mirchi is the favored station on the roads with a share over 50 per cent on an average
since launch.
 The research reveals that Radio Mirchi enjoys the highest "loyalty" among its listeners.
 Radio Mirchi has partnered with VIBGYOR 2008 (college fest of International School of
Business and Media).
 Also with BLITZKRIEG 2008 (ICFAI Business School), COBWEB 2008 (college fest of
LHMC) and SPANDAN 2008 (college fest of Vivekananda College).
 Their wide and national footprint enables our advertisers to reach the largest number of
listeners among private operators in high income cities and adjoining areas.
 Also won awards for its successful brand building.
 the '983 - Kismat Khol De' Contest won the Gold medal for Best Activity generating Brand
Loyalty at the Promotion Marketing Awards of Asia – 2004.
 Bronze medal for Best Activity generating Brand Awareness and Trial recruitment at the
Promotion Marketing Awards of Asia – 2004.

WEAKNESS
 Listeners’ faces major distraction from advertisements aired in between the show.
 Long waiting queues to connect with them by calling.
 Radio jockeys had no long lasting career.

OPPORTUNITY
 Future plans include exploring opportunities to become FM radio broadcasters or content
providers in international markets at an appropriate time, either directly or through strategic
partnerships or inorganic initiatives.
 Great opportunity in the field of generating their own news show on air.
 Field of internet radio

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THREATS
 Still facing threat from AIR FM and FM Gold. Both are take care by government bodies.
 High threat from all private music station, specifically from Fever 104FM, 93.5Red FM, 91.1
Radio city.
 Recent threat is Meow 104.8FM, which is completely women oriented music station.

GE MATRIX

INDUSTRY ATTRACTIVENESS WEIGHT RANK PRODUCT

Market Size .3 8 2.4
Growth rate .25 7 1.75
Profit Margin .05 6 0.15
Technology and capital .2 7 1.4
Social Impact .2 8 1.6
TOTAL 1 Out of 10 7.3

BUSINESS STRENGTH WEIGHT RANK PRODUCT

Market Size .4 9 3.6
Core Competency .3 8 2.4
Technology ability .2 7 1.4
Ability to match service .1 7 .7
TOTAL 1 Out of 10 8.1

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DESCRIPTION AND ANALYSIS OF THE IDENTIFIED PROBLEMS

1. FINANCE PROBLEMS

PROBLEM

There were too much of Loans taken by the company. The Balance Sheet of the financial year 2007-08
and 2006-07 (Annexure I) shows huge amounts of loans, secured as well as unsecured taken by the
company and these loans are just piling up year after year. The total loan figures which were only Rs.
35 crores in financial year 2005-06, shoot up to Rs. 106.8 crores in the financial year 2006-07 and the
debt component for further piled in the next financial year of 2007-08 to a threatening heights of Rs.
193.25 crores.

ANALYSIS OF THE PROBLEM & ITS EFFECT ON COMPANY

Too much of Loans for the company can be troublesome for the future for the company. What will the
company do if the people will ask their money back. In this case the company may have to sell off their
valuable assets or the pledged securities and assets on the loan can be taken over or auctioned at take
away prices, which would push company to deep losses and it would then become hard for the
company to recover.

STEPS TAKEN BY THE COMPANY

Company paid off loans worth Rs. 95.25 crores. (refer Annexure I). At a time when many would
rather hold on to cash, ENIL(Radio Mirchi) has engaged in a debt cleaning act. The company had
cleaned off a whopping Rs 95.25 crore of debt from its balance sheets. Even for a company the size of
ENIL, this is too much debt to have, and Company’s officials had said in the past that they were not
too comfortable with the debt amounts that had built up over the last year.

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PROBLEM

There were some areas where the company invested heavily and this would have worked in adding to
the overall debt figure. ENIL had invested a huge sum in the Virgin Radio deal.

The deal for Virgin Radio, that was later renamed Absolute Radio, is believed to have put a significant
dent in the ENIL books. Media sources said that the experience had even discouraged BCCL to invest
in international expansion for some time.

ANALYSIS OF THE PROBLEM & ITS EFFECT ON COMPANY

The huge money invested in the deals which are not working can be a great dent for the company.
Company has to lose out on many things when their money is dumped, first is that they are not able to
generate/earn money out of the deal and their money becomes dead and another is that they have to
lose out on opportunities that can give them higher and greater returns. It has a direct impact on the
profits and hence on the working of the company.

STEPS TAKEN BY THE COMPANY

Company sold out some of the investments to raise cash.

Company raised cash by selling investments through its various assets including investments from
Private Treaties.

On the Virgin Radio deal company think that it did something very logical. The company has all the
portents of convergence. Absolute Radio is available on more than 50 to 60 digital platforms today.
But the turn of the economy (post acquisition) was a rude shock. The heavens gave way. And after
November 2008, Indian media too started suffering. At our OOH (Out of Home) business some of our
key clients such as RBS (Royal Bank of Scotland), Barclays, Dubai Properties, EMAAR holding
pulled back.

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According to the Company the good news for then is that they are able to keep their head over the
water as far as monthly revenues are concerned at Absolute Radio International. And they have taken
corrective measures analyzing their core areas and discontinuing with non-core ones.

PROBLEM

The Company which has shown huge profits in the past has constantly on the down move as the profits
are drying down and even it registered loss in the first quarter of financial year 2009-2010.

ANALYSIS OF THE PROBLEM & ITS EFFECT ON COMPANY

Affected by weakened revenue and a tough advertising market, Entertainment Network India Ltd’s
(ENIL) radio business, Radio Mirchi, has reported a net loss of Rs 1.45 crore in Q1 of FY10, as against
a profit of Rs 0.70 million in the corresponding quarter of the previous fiscal.

Revenue fell 13.5 per cent to Rs 50.25 crore amid stiff competition for market share and an overall ad
slowdown, as against Rs 57.2 crore in Q1 of FY 09.

The Company’s earnings before interest, tax, depreciation and amortization (EBITDA) stood at Rs
9.25 crore. The company’s EBITDA margin improved from 18.2 per cent in Q1 FY09 to 18.4 per cent
during the current quarter. The reported EBITDA also includes a one- time cash flow neutral charge of
Rs 1.36 crore.

On a consolidated basis, ENIL reported revenues of Rs 87.3 crore during Q1 FY10, as compared to Rs
107.1 crore during Q1 FY09.

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STEPS TAKEN BY THE COMPANY

According to the company their two large business segments – radio and OOH Media – are dependent
largely on the ad market. The cyclical decline in the ad market impacted these business segments. They
have taken a number of measures to structurally improve their businesses. They believe these measures
augur well for the long term health of all their businesses.

The company believes that it has managed to stem any further de-growth on a sequential basis over Q4
of last year. Their market share has also climbed up to 42 per cent now. The brand is performing very
well in terms of listenership. First it was IRS that showed thier listenership to be double than our
nearest private FM competitor. Now even RAM has shown them to be the number one brand in all the
four metro markets for the last seven weeks in a row. They believe that the advertising industry will
start to grow again from Q3 and Radio Mirchi is well poised to take advantage of that.

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2. HUMAN RESOURCE PROBLEM

PROBLEMS

 BCCL CEO Mr. Dhariwal has informed them that there would be no salary revision and no
(target variable pay) TVP pay out this year. Instead, there would be a roll-back of increment for
all employees starting March 1, 2009. This would be graded, that is, employees who got a
smaller increase would get a lower reduction and the employees who got a higher increase
would have a higher reduction of increments.
 Employee turnover is high as compare to others . It is not able to retain their existing
employees.
 Due to low pay packages company is not able to attract talent from the market. Their offer are
not upto the mark of market and competitors.
 Employees not enough motivated to serve their loyalty to the companies.

ANALYSIS OF THE PROBLEM & ITS EFFECT ON COMPANY

All the problems mentioned above like attracting talents , motivating , retaining them is an
integrated issues .

 Shortage of talent and skill - The company due to its low pay packages will not be able to
attract great skill . Radio Mirchi `s success majorly depends how good the radio jockey is or
how creative the employees working there are. Now to attract creative talent which are more in
young people need to pay more .
 Listeners issue - The major reason of customer loyalty is because of the radio jockey whom
they listen . Now if radio jockey keep on changing frequently then customer retention will be a

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 major problem. They would feel cheated . It will effect worse if the radio jockey was liked by
many listener or were having regular listener. Thus loosing a radio jockey may cost the
company to loose many regular customers
 Employee as an asset – Unlike other companies , radio station popularity depends more on the
soft skill and the creativity of the employees. Every day they need to think new and exiting to
retain the regular listener and attract new ones. Now because these employees are of so much
of importance thus they are the asset of the company.
 Direct effect to the revenue – These employees are the creative mind of the company and
connect directly to the customers. They are bridge between listener and the company . If these
people are dissatisfied then it will directly hit the revenue of the company .
 Brand image - once any jockey leaves the radio station and joins the other station then it gives
a wrong image to the other companies who are our customer and to the listener too. On the
other hand if employees leaves the company and switch over to our competitors then the
company`s strategy, ideas , creative plans can be shared to the competitors .

Thus employee satisfaction is directly proportional to the profit of the station.

STEPS TAKEN BY THE COMPANY:

Employee Stock Ownership Scheme( ESOS) - Entertainment Network (India) Limited Employee
Stock Option Scheme (hereinafter referred to as ‘ENIL ESOS-2005’) was implemented for the benefi t
of the employees of the Company, its holding company and its subsidiary (including Directors) in
accordance with the Securities and Exchange Board of India (Employee Stock Option Scheme and
Employee Stock Purchase Scheme) Guidelines, 1999. Introducing these stock option for the
employees will increase the sense of responsibility and loyality. Under these benefit employees will get

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share of the company as an extra benefits. This will make them work for their individual interest
which will be align with the company profit.

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3. MARKETING PROBLEMS

PROBLEMS

Radio Mirchi is a market leader but still it is the market leader but still facing threat from government
stations like AIR FM AND FM GOLD.
Radio Mirchi is also facing high threat from all private music station, specially from fever 104 FM,
93.5 Red FM, 91.1 Radio city.
Listener faces major distraction from ad aired in between the show.

ANALYSIS OF THE PROBLEM & ITS EFFECT ON COMPANY

If these problems are not solved on time then they can effect the company in a great way. The
following are the few effects of these problems on the company :-
• Loose the customer who are busy and don’t have much time for radio.

• Repetition of the ad do not let customer to add up in our list

• Radio Mirchi share the same customer with its competitors thus their listener usage hour gets
reduced automatically.
• High chance of loosing our new customers
• Less chance of attracting those listener who are also the listener of AIR FM or FM GOLD
• Difficult in gaining new customers.
• Other companies will get more option for advertising their products etc .
• More competitors thus more player to share the pie.

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STEPS TAKEN BY THE COMPANY:

Radio Mirchi (Mirchi sunnewale always khush) focuses on its customer and the quality of music
provided by them. They try to come up with new innovative ideas thereby making their radio the most
preferred station with largest listenership. For example there latest innovation is in the style of radio
jockeys. Generally, radio jockeys speak non-stop quite fast entertaining the masses. But there is new
RJ named Sudh who talks at a slower pace but in a weird tone. His way of telling jokes attracts people
to him.
As Radio Mirchi has the top class wide network, with great support from their advertisers and
distributers, they do not face a high threat from their competitors.
Radio Mirchi come up with programme called Khubsoorat.(fitness,health, beauty) its totally women
oriented programme.
Radio Mirchi concept is that everyday is a woman's day. Along with celeb bytes we will be talking to
our listeners who have voiced out that March 8 is not the only day where we need to celebrate women,"
says Radio Mirchi marketing head Kavitha Bhagha.

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4. OPERATIONS PROBLEMS
PROBLEMS
Due to economic slowdown of last year company could not spends on :-
Technological Absorption, Adaptation and Innovation
The Company has not absorbed any new technology during the financial year under review. However,
Statement pursuant to Section 217(1)(e) of the Companies Act, 1956, read with the Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules, 1988,is hereunder:
a) Efforts made towards technology absorption, adaptation and innovation. (Not available)
b) Benefits derived as a result of the above efforts. (Not available)
c) Information regarding imported technology. (Not available)

Research & Development

a) Specific areas in which Research and Development is carried out by the Company. (Not available)
b) Benefits derived as a result of the above research and development. (Not available)
c) Future plan of action.-NA
d) Expenditure on Research and Development. (Not available)

ANALYSIS OF THE PROBLEM & ITS EFFECT ON COMPANY

As the company didn’t do any technological innovation and development, company will not get any
competitive advantage. Company has implements the SAP to improve the process efficiencies and
effectiveness.
Due to economic slowdown company did not work on the research and development, as the result
company didn’t get the benefit which the company can achieve by doing research and development.

STEPS TAKEN BY THE COMPANY:

Due to the limited funds and the economic slowdown right now the company is not in the position to
spend much on the technological advancements and research. Therefore, the above mentioned
problems are still unsolved.

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LIMITATIONS OF THE STUDY :

We as a group faced the following problems during study ;-

 Finding the latest facts and figures about Radio Mirchi’s market share and annual growth.

 Time Constraint.

 Resource constraint to conduct primary research for understanding the consumer behavior in

the Radio Industry.

 No access to the confidential information about the company.

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REFERENCES :
Initial list of bibliographic and www materials that would be used to complete the project.

WEBSITES
 www.enil.co.in
 www.radiomirchi.com
 www.capitaline.com
 www.ebscohost.com
 www.exchange4media.com
 www.businessofcinema.com
 www.medianewsline.com
 www.televisionpoint.com
 www.thehindubusinessline.com
 www.afaqs.com
 http://business.in.com

BOOKS, MAGAZINE & REPORTS

 Forbes India Magazine of 25 September, 2009

 FIIC-PwC Report.

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 APPENDIX I
Entertainment Network Balance Sheet (Rs. In
Cr.)
(India) Ltd
Mar 09 Mar 08 Mar 07 Mar 06 Mar 05
SOURCES OF FUNDS :
Share Capital 47.67 47.66 47.58 47.56 116.96
Reserves Total 265.95 262.92 246.07 216.18 -83.26
Equity Share Warrants 0 0 0 0 0
Equity Application Money 0 0 0 0 0
Total Shareholders Funds 313.62 310.58 293.65 263.74 33.7
Secured Loans 20 115.25 31.8 0 0
Unsecured Loans 90.07 78 75 35 0
Total Debt 110.07 193.25 106.8 35 0
Total Liabilities 423.69 503.83 400.45 298.74 33.7
APPLICATION OF FUNDS :
Gross Block 366.45 361.62 275.33 254.88 39.91
Less : Accumulated 117.57 77.99 45.91 27.97 15.64
Depreciation
Net Block 248.88 283.63 229.42 226.91 24.27
Lease Adjustment 0 0 0 0 0
Capital Work in Progress 2.05 4.55 56.77 9.85 0
Investments 39.03 42.03 6.52 34.25 6.3
Current Assets, Loans &
Advances
Inventories 0 0 0 0 0
Sundry Debtors 58.57 68.05 48.01 35.27 20.83
Cash and Bank 11.65 12.09 10.55 3.94 1.67
Loans and Advances 85.24 135.21 87.24 27.64 10.33
Total Current Assets 155.46 215.35 145.8 66.85 32.83
Less : Current Liabilities &
Provisions
Current Liabilities 26.22 43.65 29.41 34.6 28.75
Provisions 2.92 2.52 11.02 4.52 0.95
Total Current Liabilities 29.14 46.17 40.43 39.12 29.7
Net Current Assets 126.32 169.18 105.37 27.73 3.13
Miscellaneous Exp. not 0 0 0 0 0
written off
Deferred Tax Assets 29.14 22.49 12.83 0 0
Deferred Tax Liability 21.73 18.05 10.46 0 0

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 Net Deferred Tax 7.41 4.44 2.37 0 0
Total Assets 423.69 503.83 400.45 298.74 33.7
Contingent Liabilities 26 52.04 47.64 55.94 44.48
(Rs. In
Entertainment Network (India) Ltd P & L Account Cr.)
Mar 09 Mar 08 Mar 07 Mar 06 Mar 05
INCOME :
Sales Turnover 228.28 225.22 167.2 117.41 74.94
Excise Duty 0 0 0 0 0
Net Sales 228.28 225.22 167.2 117.41 74.94
Other Income 7.66 14.7 3.18 11.49 1.28
Stock Adjustments 0 0 0 0 0
Total Income 235.94 239.92 170.38 128.9 76.22
EXPENDITURE :
Raw Materials 0 0 0 0 0
Power & Fuel Cost 9.06 6.55 3.15 2.12 0.32
Employee Cost 51.81 46.61 34.47 22.89 15.03
Other Manufacturing 6.69 4.96 3.76 2.69 4.07
Expenses
Selling and Administration 102.47 108.22 77.35 49.88 65.52
Expenses
Miscellaneous Expenses 9.2 7.28 3.59 2.29 3.09
Less: Pre-operative Exp. 0 0 0 0 0
Capitalised
Total Expenditure 179.23 173.62 122.32 79.87 88.03
Operating Profit 56.71 66.3 48.06 49.03 -11.81
Interest 14.66 17.87 2.34 3.68 0.78
Gross Profit 42.05 48.43 45.72 45.35 -12.59
Depreciation 40.09 32.11 17.94 12.33 5.34
Profit Before Tax 1.96 16.32 27.78 33.02 -17.93
Tax 0 0 0 2.8 0
Deferred Tax -2.97 -2.07 -2.37 0 0
Reported Net Profit 2.91 16.19 29.08 29.47 -17.93
Extraordinary Items 1.09 1.78 0.45 9.6 0.31
Adjusted Net Profit 1.82 14.41 28.63 19.87 -18.24
Adjst. below Net Profit 0 0 0 101.76 0
P & L Balance brought 74.52 58.33 29.25 -101.98 -84.05
forward
Statutory Appropriations 0 0 0 0 0
Appropriations 0 0 0 0 0

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P & L Balance carried down 77.43 74.52 58.33 29.25 -101.98
Dividend 0 0 0 0 0
Earnings Per Share-Unit Curr 0.61 3.4 6.11 6.2 0
Book Value-Unit Curr 65.79 65.17 61.72 55.45 2.88