-: 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

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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

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get 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 IEntertainment Network (India) Ltd

Balance Sheet

     (Rs. In Cr.)

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 Depreciation  117.57 77.99 45.91 27.97 15.64  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 written off  0 0 0 0 0   Deferred Tax Assets 29.14 22.49 12.83 0 0  Deferred Tax Liability 21.73 18.05 10.46 0 0   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

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Entertainment Network (India) Ltd

P & L Account 

     (Rs. In 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 Expenses  6.69 4.96 3.76 2.69 4.07 Selling and Administration Expenses  102.47 108.22 77.35 49.88 65.52  Miscellaneous Expenses  9.2 7.28 3.59 2.29 3.09 Less: Pre-operative Exp. Capitalised 0 0 0 0 0   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 forward 74.52 58.33 29.25 -101.98 -84.05 Statutory Appropriations  0 0 0 0 0  Appropriations  0 0 0 0 0  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