TO ANALYSE THE IMPACT OF NEW SUBSCRIPTION AND RENEWED

SUBSCRIPTION ON FINANCIAL STATEMENTS OF THE TIMES OF INDIA

A Synopsis

SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD OF

THE DEGREE OF MASTER IN BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF:

Prof. Bhawna Manyal

Assistant Professor, RDIAS

SUBMITTED BY:-
Name of the Student:- Cheshta Sethi
Enrolment No. 50615903920
MBA, Semester 3
Batch: 2020-2022

RUKMINI DEVI INSTITUTE OF ADVANCED STUDIES

An ISO 9001:2015 Certified Institute
NAAC Accredited: A+ Grade (2nd Cycle), Category A+ Institution (by SFRC, Govt of NCT of Delhi)
(Approved by AICTE, HRD Ministry, Govt. of India)
Affiliated to Guru Gobind Singh Indraprastha University, Delhi
2A & 2B, Madhuban Chowk, Outer Ring Road, Phase-1, Delhi-110085
 List of Contents

1. Title of Project:
It should be clear and specific.
2. Introduction :
About the topic and about the organization.
3. Theoretical review and (or) Literature Review:
Theoretical Review should consist of topics that are covered in classroom
teaching and are connected to the project. Any conceptual framework/model can
also be presented.
Literature Review should include relevant studies done by other researchers not
prior to year 2010.
4. Rationale of Study:
The rationale of research is the reason for conducting the study. The rationale
should answer the need for conducting the said research.
5. Research Methodology:
a. Research Objectives

b. Research Design :

1. Sample of the study

2. Tool of data collection
3. Sources of data.

6. Learnings from the internship: Students must be able to specify the learnings
from the internship. It may include Usefulness of the learnings in future, students
contribution to the host organization, Challenges faced during the internship etc.

7. Bibliography
APA format has to be followed.
1. Title of the Project: -
To analyse the impact of New Subscription and Renewed Subscription on Financial Statements
of The Times of India.

2. Introduction
About the topic –
Meaning Of Financial Statements

Financial statements refer to such statements which contains financial information about an

enterprise. They report profitability and the financial position of the business at the end of

accounting period. The team financial statement includes at least two statements which the

accountant prepares at the end of an accounting period. The two statements are: -

 The Balance Sheet

 Profit And Loss Account

They provide some extremely useful information to the extent that balance Sheet mirrors the

financial position on a particular date in terms of the structure of assets, liabilities and owners

equity, and so on and the Profit And Loss account shows the results of operations during a

certain period of time in terms of the revenues obtained and the cost incurred during the year.

Thus the financial statement provides a summarized view of financial positions and operations of

a firm.

Financial Statements are prepared to ascertain the profit earned or loss suffered and position

of assets and liabilities at a particular date are known as financial statements. These are the final

product of accounting process.

Features of Financial Analysis

o To present a complex data contained in the financial statement in simple and

understandable form.

o To classify the items contained in the financial statement in convenient and rational

groups.

o To make comparison between various groups to draw various conclusions.

o Financial statements are prepared in monetary terms.

o Balance sheet reveals the financial position and statement of profit and loss shows the

profitability of the business organisation.

Objectives of Financial Statements

(i) Financial statements provide the information about the earning capacity of the business.
(ii) Financial statements provide the information about the economic resources and obligation of
an enterprise.
(iii) Financial statements also provide the information about the cash flows.
(iv) Financial statements supply the information useful for judging the management’s ability to
utilise the resources of business effectively.
(v) Financial statements have to report the activities of the business organisation affecting the
society, which is important in its social environment.

Purpose of Analysis of financial statements

 To know the earning capacity or profitability.

 To know the solvency.

 To know the financial strengths.

 To know the capability of payment of interest & dividends.

 To make comparative study with other firms.

  To know the trend of business.

 To know the efficiency of mgt.

 To provide useful information to mgt.

Procedure of Financial Statement Analysis

The following procedure is adopted for the analysis and interpretation of

Financial statements:-

 The analyst should acquaint himself with principles and postulated of accounting. He

should know the plans and policies of the management so that he may be able to find out

whether these plans are properly executed or not.

 The extent of analysis should be determined so that the sphere of work may be decided. If

the aim is finding out. Earning capacity of the enterprise then analysis of income

statement will be undertaken. On the other hand, if financial position is to be studied then

balance sheet analysis will be necessary.

 The financial data be given in statement should be recognized and rearranged. It will

involve the grouping similar data under same heads. Breaking down of individual

components of statement according to nature. The data is reduced to a standard form.

 A relationship is established among financial statements with the help of tools &

techniques of analysis such as ratios, trends, common size, fund flow etc.

 The information is interpreted in a simple and understandable way. The significance and

utility of financial data is explained for help in decision making.

 The conclusions drawn from interpretation are presented to the management in the form

of reports.
Methods/Tools of Financial Analysis

A number of methods can be used for the purpose of analysis of financial statements. These are

also termed as techniques or tools of financial analysis. Out of these, and enterprise can choose

those techniques which are suitable to its requirements. The principal techniques of financial

analysis are:-

a. Comparative financial statements

b. Common-size statements

c. Trend analysis

d. Ratio analysis

e. Funds flow analysis

f. Cash flow analysis

A. Comparative Financial Statements:

When financial statements figure for two or more years is placed side-side to facilitate

comparison, these are called ‘comparative Financial Statements’. Such statements not only show

the absolute figures of various years but also provide for columns to indicate to increase or

decrease in these figures from one year to another. In addition, these statements may also show

the change from one year to another on percentage form. Such cooperative statements are of

great value in forming the opinion regarding the progress of the enterprise.
Objectives or significance of Comparative Financial Statements

1. To simplify data

2. To make inter period/inter-firm comparison

3. To indicate the trends

4. To enable forecasting

5. To indicate the strengths and weaknesses of the firm

6. To compare the performance

7. To analyses expenses

8. To analyses profit

Tools for comparison of financial statements

Comparative financial statement is a tool of financial analysis that depicts change in each item of

the financial statement in both absolute amount and percentage term, taking the item in

preceding accounting period as base.

Comparison and analysis of financial statements may be carried out using the following tools:

1. Comparative Balance Sheet : The comparative balance sheet shows increase and decrease in

absolute terms as well as percentages ,in various assets ,liabilities and capital. A comparative

analysis of balance sheets of two periods provides information regarding progress of the business

firm.

The main purpose of comparative balance sheet is to measure the short- term and long-term

solvency position of the business.

2. Comparative Income Statement : Comparative income statement is prepared by taking

figures of two or more than two accounting periods, to enable the analyst to have definite

knowledge about the progress of the business. Comparative income statements facilitate the

horizontal analysis since each accounting variable is analysed horizontally.

B. Common- Size Statements

Common size statements are such statements in which the items of financial Statements are

covered into percentage of common base. In common-size income Statement, by assuming net

sales as 100(i.e. %) and other individual items are Converted as percentage of this. Similarly, in

common –size balance sheet, total Assets are assumed to be 100 (i.e. %) and individual assets

are expressed as percentage.

Objectives of common size statements

1. Presenting the change in various items in relation to total assets or total liabilities or net

sales.

2. Establishing a relationship.

3. Providing a common base for comparison

Types of Common Size Statements

1. Common-Size Balance Sheet : A common –size balance sheet is a statement in which

total of assets or liabilities is assumed to be equal to 100 and all the figures are expressed

as percentage of the total. That is why it is known as percentage balance sheet.

Common-size balance sheets facilitate the vertical analysis since each item of the Balance

Sheet is analysed vertically.

 2. Common-Size Income Statement: Common-size income statement is a statement in which

the figures of net sales is assumed to be equal to 100 and all other figures of “profit and loss A/c”

are expressed as percentage of net sales. This statement facilitate the vertical analysis’s since

each accounting variable is analysed vertically. One can draw conclusion, regarding the

behaviour of expenses over period by examining these percentages.

C. Trend Analysis:

Trend percentages are very useful is making comparative study of the financial Statements for a

number of years. These indicate the direction of movement over a long time and help an analyst

of financial statements to form an opinion as to whether Favourable or unfavourable tendencies

have developed. This helps in future forecasts of Various items. For calculating trend

percentages any year may be taken as the ‘base Year’. Each item of base year is assumed to be

equal to 100 and on that basis the Percentage of item of each year calculated.

D. Ratio Analysis:

Absolute figures expressed in financial statements by themselves are meaningfulness. These

figures often do not convey much meaning unless expressed in relation to other figures. Thus, it

can be said that the relationship between two figures, expressed in arithmetical terms is called a

ratio.

“According to R.N. Anthony, “A ratio is simply one number expressed in terms of another.

It is found by dividing one number into the other.”

Limitations of Financial Statements

(i) Accounting concepts and conventions involve personal judgement, so these statements are not

free from bias.

(ii) Qualitative aspects of financial statements are ignored.

(iii) The present value of assets and liabilities and price-level changes are ignored.

(iv) Financial statements are historical in nature and relate to past period only.

About the Organization-

The Times Group (Also referred as Bennett, Coleman & Co. Ltd.) is the largest
company in media and entertainment industry in India and South Asia. It has
completed 175 years of its journey in media industry from 1838, established
in Mumbai. Starting off with The Times of India – which is now the largest
English publication in the world, BCCL and its subsidiaries (called The Times
of India Group), are present in every existing media platform – Newspapers,
Magazines, Books, TV, Radio, Internet, Event Management, Outdoor Display,
Music, Movies and more. Having strength of more than 11,000 employees, its
revenue is exceeding $1.5 Billion, it has the support of more than 25000
advertisers and a vast audience spanning across the world.
The Times of India is an Indian English-language daily newspaper and digital
news media owned and managed by The Times Group. It is the third-largest
newspaper in India by circulation and largest selling English-language daily in the
world. Wikipedia

Owner: The Times Group

Circulation: 2,880,144 daily (as of December 2019)

Editor-in-chief: Jaideep Bose

Founded: 3 November 1838; 182 years ago

Publisher: The Times Group

Headquarters: Bombay, Maharashtra, India

First issue date: 1838

Key Business areas:

 Publishing
 Television
 Digital
 Out of Home
 Other Activities
Publishing:-

 Largest publisher in India: 13 newspapers, 18 magazines, 16

publishing centres, 26 printing centres

 Largest English newspaper in India by circulation (and the world),

the Times of India.

 Largest Business newspaper in India by circulation (2nd largest

English Business daily in the world, behind WSJ), the Economic
Times.

 Largest Non‐English newspapers in Mumbai, Delhi, Bangalore by

circulation (India’s three largest cities).

Television:-

 Largest English News TV Channel, No. 2 English Business News TV

Channel.

 Largest Bollywood News and Lifestyle TV Channel, No. 2 English

Movies TV Channel.

Digital:-
  Largest Indian network based on traffic and revenue (behind Google,
Facebook, Yahoo).

 Operates 30+ digital businesses, most of which are Top 3 in their

competitive segment.

 Most popular B2C mobile short code in India, across SMS, voice,
WAP, and USSD Radio.

 Largest radio network in India by revenue and listenership, with 32

stations.

 Operates the largest rock radio station in the UK.

Out-of-home:-

 Largest Out‐of‐home advertising business in India with presence in

all major metros.

 Owns advertising contracts in most major airports in India.

Other Activities:-

 Music
 Movies
 Syndication
 Education
 Financial Services
 Event Management
 Specialised publications - including books and multimedia.
 Subsidiaries of Times Group
TIML & ENIL

Times Innovative Media Limited (TIML) & Entertainment Network India

Limited (ENIL) that together control,

 Radio Mirchi National network of Private FM stations

 360 Degrees Events
 Times Outdoors (TIM Delhi Airport Advertising Private Limited.
 Mirchi Movies Limited Filmed Entertainment. Producers of BEING
CYRUS, VELLITHIRAI, MANJADIKURU.

Times Internet Limited

Times Internet Limited is one of the largest internet companies of India.

It has interests in online news, online business news, Hindi, Marathi,
Kannada, and Bengali news, mobile, e-Commerce, music, video, and
communities. Some of the larger properties of TIL include:

 India times shopping - one of the largest and earliest ecommerce

portals in India
 India
 Times of India
 Economic times.com
 Navbharattimes.com
 Maharashtra Times
 Timescity.com
 Gaana.com
 BoxTV.com
 Times Deal

Times of Money

Times of Money operates financial remittance services for Indians abroad

to send money back to India. Their product, remit2India, is a standalone
product, while also powering the remittance services of many banks
globally.
Times Global Broadcasting Limited

Television division. It is also called Times Television Network.

 Times Now A general interest news Channel

 Smart Hire A Consulting Division – Recruitments
 ET Now A business news channel
 Zoom A 24x7 Bollywood entertainment and gossip channel
 Movies Now A 24x7 Hollywood Movies channel in High Definition
(India's first)

Times Business Solutions

 TBSL, corporate website of TBSL.

 Times Jobs, a jobs portal.
 Techgig, a professional networking site for Technology Peoples.
 Simply Marry, a matrimonial portal.
 Magic Bricks, a real estate portal.
 Yolist, free classifieds portal.
 Ads2Book, online classifieds booking system for print publications.
 Peer Power, a Senior-Level professional networking portal.

World Wide Media

World Wide Media - started off as a 50:50 magazine joint venture

between BCCL and BBC magazines. In August 2011, it was announced
that Bennett, Coleman & Co. bought out the remaining 50 per cent
shares of Worldwide Media from BBC Worldwide thereby making
World Wide Media a fully owned subsidiary of BCCL.

 Filmfare
 Filmfare Awards
 Femina
 Femina Miss India A Beauty Pageant
 Top Gear Magazine India
 BBC Good Homes
  Femina Hindi
 Grazia
 What to Wear

TIML Radio Limited

On 30 May 2008, SMG sold The British Virgin Radio to TIML Radio Limited
for £53.2 million with £15 million set aside for rebranding. On 28
September 2008, The British Virgin Radio Station rebranded as Absolute
Radio, including the sister radio stations Absolute Xtreme and Absolute
Classic Rock.

Stations

 Absolute Radio
 Absolute Radio 60s
 Absolute Radio 70s
 Absolute 80s
 Absolute Radio 90s
 Absolute Radio 00s
 Absolute Classic Rock
 Absolute Radio Extra This company is a direct subsidiary of BCCL
(not through TIML or ENIL).

Times Syndication Service

The syndication division of The Times of India Group, grants reprint rights
for text, and other media from the group's publications.

Brand Capital

Brand Capital provides funding to growth oriented enterprises for their

long term brand building needs.

Online shopping

Satvik shop, an online shopping website dedicated to organic and ayurvedic

products.

3. Theoretical Review or Literature Review

Literature Review was done by referring previous studies, articles and
books to know the areas of study and analyse the gap or study not done so
far. There are various studies were conducted relating to operational
performance of the company from which most relevant literatures were
reviewed.

Kennedy and Muller (1999), has explained that “The analysis and
interpretation of financial statements are an attempt to determine the
significance and meaning of financial statements data so that the forecast
may be made of the prospects for future earnings, ability to pay interest and
debt matureness (both current and long term) and profitability and sound
dividend policy.”
Susan Ward (2008), emphasis that financial analysis using ratios between
key values help investors cope with the massive amount of numbers in
company financial statements. For example, they can compute the
percentage of net profit a company is generating on the funds it has
deployed. All other things remaining the same, a company that earns a
higher percentage of profit compared to other companies is a better
investment option.

4. Rationale of Study
1. The purpose of market research is to verify market needs.

2. It must give information about the past experience, present status, problems and future
prospects of the industry.

3. Financial statements are essential since they provide information about a company's
revenue, expenses, profitability, and debt.

5. Research Methodology

A. Research Objectives
 Marketing of the newspapers so that more and more customers should subscribe the
newspapers i.e. to sell the subscriptions of the magazines.
 To study the supply chain of Newspaper (Times Of India, Economic Times, Femina,
Good Homes, Grazia, Hello, Top Gear, & Film Fare) in Delhi which includes printing
of newspaper, supply of newspaper to stores, Distributors of newspaper in market,
storage of inventory and supplying newspaper to customers.
 The main objective of the study was to increase the readership of the The Times Of
India ( TOI) and The Economic Times (ET).
 To predict and explore the customer demands in terms of Price, Quality and Services
for newspapers.
 To find out the reasons why subscribers are not renewing or discontinuing their
subscription.

B. Research Design
 Research Design refers “to framework or plan for a study
that guides the collection and analysis of data”. A typical
research design of a company basically tries to resolve the
following issues:-
1. Determining data collection design
2. Determining data methods
3. Determining data sources
4. Determining data collection methods
5. Developing questionnaires
6. Determining sampling plan

THERE ARE 2 TYPES OF

DESIGN

EXPLORATIVE RESEARCH CONCLUSIVE RESEARCH

DESIGN DESIGN

 Explorative research design:

 Explorative studies are undertaken with a view to know
more about the problem.
  These studies help in a proper definition of the problem,
and development of the specific hypothesis is to be tested
later by more conclusive research designs.
 Its basic purpose is to identify factors underlying a
problem and to determine which one of them need to be
further researched by using rigorous conclusive research
designs.

Conclusive research design:-

 Conclusive research studies are more formal in nature and
are conducted with a view to eliciting more precise
information for the purpose.
 These studies can be either:
1. Descriptive
2. Experimental
Thus, it was mix of both the tools of research design i.e.
Explorative as well as Conclusive.
 Geographical location: The geographical location taken for the purpose
of data collection and the research is Delhi NCR.

 Sample of the Study: - Leads were given by the company. In one weak
we get around 150 leads

 Tool of data collection: - We receive the Secondary Data from the

company.

 Limitations: -
o As we were restricted to Delhi NCR so we could not collect the perfect

data.

o Main limitation of this study was time limit.

6. Learnings from internship: -

  Improved skills

 Professional Communications

 Networks

 Making Connections

 Analyze the financial statements

 How to make a correct decision

7. Bibliography

APA format has to be followed.