BHARAT NIDHI LIMITED UNLISTED SHARE
ABOUT BHARAT NIDHI LIMITED
BHARAT NIDHI LIMITED was first established in 1942 as Bharat Bank Limited and carried out the banking activities. Later in 1951, the company closed all its banking activities and changed its name to Bharat Nidhi Limited. The company then worked as a distributor of newspapers and periodicals in Delhi & NCR. But now, apart from the distribution of newspapers and periodicals, the company is also engaged in investing its surplus funds in debt-based mutual funds, banks, and financial institution's fixed deposits and other safe avenues from time to time.
The company holds a contract with Bennett Coleman and Company Limited to distribute their newspapers and magazines. Bharat Nidhi Limited is also a major shareholder of Bennett Coleman and Company Limited.
Since 2002 the company is also registered as an NBFC (Non-Banking Finance Company) with the Reserve Bank of India (RBI). However, in 2014, the company has voluntarily made an effort to surrender its Certificate of Registration as NBFC.
The stock of Bharat Nidhi Limited was listed on the Calcutta Stock exchange, but later it delisted itself from the exchange by introducing a buyback offer. Now the company has been shifted to the Dissemination Board (DB) of the National Stock Exchange (NSE).
INCORPORATION DETAILS
CIN | U51396DL1942PLC000644 |
Registration Date | 21 September 1942 |
Category/Sub-category of the Company | Company Limited by Shares (NBFC) |
Address of the Registered office and contact details | First Floor, Express Building, 9-10, Bahadur Shah Zafar Marg, New Delhi – 110 002 Telephone No. : 011-43562982 E-mail id: bharatnidhi1@gmail.com |
Name, Address and Contact Details of Registrar and Transfer Agent, if any | M/s. Skyline Financial Services Private Limited D-153A, Okhla Industrial Area, Phase-I, New Delhi – 110 020, Telephone No. : 011-40450193-197; 26812682-83 Email : admin@skylinerta.com |
PRINCIPAL BUSINESS ACTIVITES OF THE COMPANY
Name and Description of main products/services | NIC Code of the product/service | % to total turnover of the Company |
Distribution of Newspapers and Magazines inDelhi& NCR | 99611519 | 91.82% |
BOARD OF DIRECTORS
Mr. B. Chintamani Rao
Mr. Bhagat Ram Goyal
Mr. Nityanand Singh
Mr. Sanket Kumar Aggarwal (Chief Financial Officer)
PARTICULARS OF ASSOCIATE COMPANIES
Name of the Company | % of shares held |
Matrix Merchandise Limited | 23.90% |
Vasuki Properties Limited | 49.99% |
Bennett, Coleman & Company Limited | 24.41% |
Bennett Property Holdings Company Limited | 24.41% |
Mahavir Finance Limited | 20% |
BHARAT NIDHI LIMITED UNLISTED SHARE DETAILS
Total Available Shares: | 2897244 |
Face Value: | Rs. 10 Per Equity Share |
ISIN: | INE286F01016 |
PAN No. | AAACB0195J |
Lot Size: | 10 Shares |
Last Trading Price: | Rs.15000 |
Market Cap | Rs. 4345.87 Crore |
SHAREHOLDING PATTERN
(As on 31-03-2020)
S. No. | Shareholders’ Name | Number of shares | % of total Shares of the company |
1 | M/s. Matrix Merchandise Limited | 600000 | 20.69 |
2 | Mr. Vineet Jain | 590000 | 20.34 |
3 | M/s. Sanmati Properties Limited | 471588 | 16.26 |
4 | M/s. Ashoka Marketing Limited | 300000 | 10.34 |
5 | M/s. Mahavir Finance Limited | 200000 | 6.9 |
6 | M/s. ArthUdyogLimited | 57974 | 2 |
7 | M/s. TM Investments Limited | 37744 | 1.3 |
8 | Others | 639938 | 22.17 |
Total | 2897244 | 100 |
INDUSTRY OUTLOOK
Print Media mainly comprises of newspapers and magazines. The print industry in India is highly segmented due to a larger number of regional languages. However, English publications are experiencing growth from tier 2 and tier 3 cities as the education and income levels are increasing in smaller cities.
As digital media is expanding its limits, the newspaper industry in most of the countries is struggling. But India is one of the few countries, where print media is still growing in all aspects including circulation, readership, and sales. ‘DainikJagran’ is the most popular daily newspaper in India. Among English newspapers, ‘The Times of India’ has the highest readership. Further, newspapers worldwide cost high as compared to India.
COVID-19 has been impacting the business operation of this industry ever since the nationwide lockdown was imposed from the last week of March 2020. The primary impact has been felt by way of decline in the demand for print publications i.e. Newspapers and Magazines on account of supply chain disruption and unavailability of personnel etc.
The decline in demand has had a pronounced impact on the revenues of the Companies working in the print media industry for the half-year ended September 2020 whereby sales of print publications fell by almost 50% when compared to the average sales trends that prevailed during the year ended March 31, 2020.
Earnings on deployed surplus funds have declined in this period of Covid-19 and may further decline incoming period of time in line with the economic slowdown and overall conditions of the economy, though the impact cannot be quantified as of now.
The revenue sources for this industry come from mainly two sources, one is advertising and the second is circulation. Advertising expenditure in India fell by 20% to Rs. 54,151 crores in FY 2020, as companies cut down on spending amid nationwide lockdown. In 2021 advertising expenditure in India is expected to rise by 26% to reach Rs. 68,325 crores, whereas spending on advertising in print media is projected to grow faster at 35% to Rs. 16,100 Crores.
KEY FINANCIALS OF BHARAT NIDHI LIMITED (In Rs. Lakhs)
Particulars | 2020 | 2019 | 2018 | 2017 |
Revenue from Operations | 4,599.10 | 4,988.88 | 5,617.89 | 5,829.62 |
EBITDA | -267.56 | -83.20 | -41.58 | -12.17 |
Finance Cost | 6.40 | 5.27 | 5.33 | 5.19 |
Depreciation | 0.31 | 0.30 | 0.92 | 1.22 |
Other Income | 8,383.67 | 2,915.32 | 1,370.33 | 835.24 |
Profit Before Tax, exceptional items and share of profit from associates | 8,109.40 | 2,826.56 | 1,322.51 | 816.66 |
Exceptional items | -0.11 | 41.85 | 97.79 | 0.10 |
Total Tax | 675.34 | 341.33 | 107.37 | 0.47 |
Profit After Tax before share of profit from associates | 7,433.94 | 2,527.07 | 1,312.93 | 816.29 |
Share of profit from associates | -6,340.82 | 40,502.46 | 24,192.50 | 23,077.74 |
Profit after tax (PAT) | 1,093.12 | 43,029.53 | 25,505.43 | 23,894.03 |
PAT margin | 8.42% | 544.39% | 364.98% | 358.51% |
EPS | 37.54 | 1,473.49 | 873.4 | 818.22 |
BALANCE SHEET OF BHARAT NIDHI LIMITED(In Rs. Lakhs)
Particulars | 2020 | 2019 |
ASSETS | ||
NON CURRENT ASSETS | ||
Tangible assets | 0.53 | 0.22 |
Non Current Investments | 3,53,979.07 | 3,59,638.33 |
Tax assets | 4.50 | 6.22 |
Long Term Loans and Advances | 474.17 | 358.87 |
Other Non Current Assets | 0.00 | 1,633.84 |
TOTAL NON CURRENT ASSETS | 3,54,458.27 | 3,61,637.48 |
CURRENT ASSETS | ||
Current Investments | 0.00 | 885.61 |
Trade receivables | 123.86 | 115.97 |
Cash and Cash equivalents | 11,156.53 | 5,006.13 |
Short tern loans and advances | 92.18 | 50.23 |
Other current assets | 528.56 | 274.94 |
TOTAL CURRENT ASSETS | 11,901.13 | 6,332.87 |
TOTAL ASSETS | 3,66,359.40 | 3,67,970.34 |
EQUITY AND LIABILITIES | ||
EQUITY | ||
Share Capital | 290.07 | 292.03 |
Reserves and Surplus | 3,65,882.03 | 3,67,519.84 |
TOTAL EQUITY | 3,66,172.10 | 3,67,811.86 |
LIABILITIES | ||
NON CURRENT LIABILITIES | ||
Other Long Term Liabilities | 82.26 | 80.58 |
Long Term Provisions | 17.45 | 21.72 |
TOTAL NON CURRENT LIABILITIES | 99.71 | 102.30 |
CURRENT LIABILITIES | ||
Trade Payables | 61.80 | 28.21 |
Other Current Liabilities | 25.49 | 27.59 |
Short Term Provisions | 0.30 | 0.38 |
TOTAL CURRENT LIABILITIES | 87.60 | 56.18 |
TOTAL LIABILITIES | 187.30 | 158.48 |
TOTAL EQUITY AND LIABILITIES | 3,66,359.40 | 3,67,970.34 |
DIVIDEND HISTORY
Particulars | 2020 | 2019 | 2018 |
Dividend (final + interim) (In Rs.) | 0.6 | 0.6 | 0.6 |
PERFORMANCE OF THE COMPANY
In FY 2020, the company sold 12,02,72,886 copies of newspapers amounting to a total of Rs. 4,105.31 lakhs and 1,59,544 copies of magazines amounting to a total of Rs. 117.39 lakhs.
Revenue from Operations of the company in FY 2020 was Rs. 4,599.10 lakhs as against the revenue from operations of Rs. 4,988.88 lakhs in FY 2019, registered a decline of 8% in FY 2020.
If just talking about the company’s primary business that is distributing the newspapers and periodicals, the company’s EBITDA turned from a loss of Rs. 83.20 lakhs in FY 2019 to a loss of Rs. 267.56 lakhs in FY 2020. But if we include the investment income of the company the company’s EBITDA in FY 2020 was Rs. 8,116.11 lakhs as against Rs. 2,832.12 lakhs in FY 2019, increased by 186.57%. This clearly states that the company is now focusing more on its investments rather than on its primary business.
Other Income which mainly consists of income from different investments increased from Rs. 2,915.32 lakhs in FY 2019 to Rs. 8,383.67 lakhs in FY 2020. It has been increased by 188%.
Profit after Tax of the company fell by around 97% from Rs. 43,029.53 lakhs in FY 2019 to Rs. 1,093.12 lakhs in FY 2020. The main reason for this sharp fall can be attributed to the share of profit /loss from associates. Two companies in which Bharat Nidhi Limited holds a major stake, namely, Bennett Coleman & Company Limited and Bennett Property Holdings Company Limited gave a loss of Rs. 1,560.92 lakhs and Rs. 4,812.25 lakhs respectively.
Bharat Nidhi Limited does not have any long-term or short-term borrowings.
Book value per equity share of the company as of 31st March 2020 was Rs.12,638.64.2
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