>ANNUAL REPORT ANALYSIS ON ENTERTAINMENT NETWORK INDIA LIMITED (AADHAR SECURITIES))

KEY HIGHLIGHTS OF THE ANNUAL REPORT

· The economy is still growing at a positive rate, albeit slower. There is no recession in India – only a slowdown and that too a temporary one.

· As per the FICCI-KPMG report in 2008, the size of the industry was approximately Rs. 8.4 billion inclusive of AIR revenues.

· The report also states that Indian media and entertainment industry stood at Rs.584.4 billion in 2008 and it will grow upto Rs.1051.1 Billion till 2013 at a CAGR of 12.5% from 2009 - 13

· The report further analyze the Indian Advertisement Industry which stood at Rs.221.7 billion in 2008, it will grow upto Rs.396.8 Billion till 2013 at a CAGR of 13.5% from 2009 - 13

· The Advertisement to GDP ratio in the country still continues to be very low at around 0.57%. This is much lower than economies like the US where it is upwards of 1.2% and developing economies such as Hong Kong and Thailand which recorded 1.47% and 1.1% respectively. The global average is also higher

at 0.9%.

· The Indian Advertising Industry is still expected to grow, albeit at a slower pace. Group M predicts that India’s ad spending in 2009 will grom by 4.7% · New initiatives are likely to be announced in the Phase III policy: broadcasters may be allowed to operate multiple stations in a city, offer news and current affairs through Prasar Bharati

· There are some significant limitations to the RAM methodology.

· As per the New Frequency Module (FM) broadcasting policy, effective April 1, 2005 license fees are charged to revenue at the rate of 4% of gross revenue for the period or 10% of Reserve One time Entry Fee for the concerned city, whichever is higher.


To see full report: ENTERTAINMENT NETWORK INDIA LTD