Raghav Bahl was the founding/Controlling Shareholder & Managing Director of the Network18 group until it was taken over by the Reliance group in 2014. Thus, his baby, Television Eighteen India Limited (TV18) used to run the popular private television channel ‘CNBC India’ during early days. The channel had its focus on business news and related events. We reproduce its balance sheet during Bahl’s time for two consecutive financial years (below) with specific learning agenda.

(a) Please note that the format of reporting uses the earlier Schedule VI of the Companies Act, 1956. It has significant differences from the presentation prescribed by the new Companies Act 2013 – and followed by all the recent financial statements. What are the significantly visible differences? Please list them down. Discuss the possible reasons behind the same.

(b) In the next balance sheet, losses are recorded as assets i.e., as part of application of funds. What could be the reasoning behind the same?

(c) Was TV18 in good financial health? What are the other factors we need to take into account while commenting on the financial health of the company?

(d) Discuss the significant changes that had happened in the companies’ financial position during the recent year.

Transcribed Image Text:

SOURCES OF FUNDS 1. SHAREHOLDERS' FUNDS Share capital Reserves and surplus 2. LOAN FUNDS Secured loans Television Eighteen India Limited Consolidated Balance Sheet (all figures in 3. Unsecured loans DEFERRED TAX LIABILITY million) 31 March 2010 31 March 2009 901 10,544 3,019 7,849 10 22,323 600 5,282 3, 138 6,644 37 15,701