SAB Events & Governance Now Media Ltd Management Discussions

INDIAN MACROECONOMICS SCENARIO:

(Source: Global Economics Research Center & Deloitte Insights)

Indias GDP grew 8.15% YoY over fiscal 2023 to 2024, with a sharp growth of 7.8% in the fourth quarter of 2023, beating the governments second advanced estimate of 7.6% and Reserve Bank of Indias (RBI) estimate of 7.3%. Fourth-quarter economic activities pointed to three interesting trends: improvement in private consumption, exports, and manufacturing. For three consecutive years, Indias economy has exceeded growth expectations (averaging 8.3% annual growth over this period) despite global uncertainties, driven by strong domestic demand and continuous government efforts toward reforms and capital expenditure.

Indias economy has recovered and expanded in a controlled manner since the pandemic. Real GDP in 2024 was 20% higher than the 2020 level, a feat achieved only by a few major economies. The outlook for continued strong growth beyond FY 202425 looks good amid geopolitical, financial markets, and climate risks.

INDUSTRY OVERVIEW & GROWTH OUTLOOK:

Indias media & entertainment sector is innovating for the future. Indian M&E sector grew by 8% in 2023, reaching INR 2.3 trillion (US$ 27.9 billion), 21% above its pre-pandemic levels in 2019.

New media, comprising digital and online gaming, emerged as the frontrunner in growth, contributing INR 122 billion of the overall increase of INR 173 billion, and consequently, increased its contribution to the M&E sector from 20% in 2019 to 38% in 2023.

Experiential (outside the home and interactive) segments continued their strong growth in 2023, and consequently, online gaming, filmed entertainment, live events, and OOH media segments grew at a combined 18%, contributing 48% of the total growth. With the exception of television, which experienced a marginal decline of 2%, all other segments experienced positive growth in 2023.

COMPANY OVERVIEW:

SAB Events & Governance Now Media Limited is carrying out the business of Digital Media Websites & MICE. Governance Now started its journey as a multi-media initiative for participatory reportage and analyses related to governance of all institutions and processes that are vital to public life in India. Our editorial team comprises of highly experienced senior journalists and guest writers from diverse disciplines and professional background. Currently, Governance Now is available in the digital format as a portal www.governancenow.com and as a video channel on YouTube "SAB Group Governance Now" with approx. half million subscribers.

CURRENT SCENARIO:

Due to the outbreak of the COVID pandemic, the Company was migrated from organizing On Ground Conferences to hosting Webinars, Virtual Conferences & Visionary Talks series, etc. maintaining healthy revenue. In FY 2022-23, with resumption of trade activities and no restriction on movement, the business of conducting seminars on ground has begun. The Company is also back to organizing its On Ground Conferences.

The Company was highly successful in organising 3rd India CISO Meet, 9th PSU Awards & Conference, 3rd RailTech Summit, 5th India BFSI conclave & Awards, 7th India PSU IT Forum, 2nd India Police Summit & Awards and Urban GovTech Transformation Conclave. Our Company has managed to deliver good performance in such testing times through its on ground conferences and webinars and is amongst very few companies to do so. Along with on ground seminars, our company intends to continue the Virtual Conferences, Technology Masterclasses, Visionary Talks as and when suitable.

28th April, 2023 - New Delhi

Theme: Sketching the Cyber Resilience Strategy Roadmap

For addressing the challenges of cyber and network security due to the increasing use of digital technologies in day-to-day operations and how to build a robust security architecture for data loss & fraud protection as well as the role of CISO in identity, and access management, program management, investigations and forensics, governance, and communication, Governance Now is Organising exclusive close- door Roundtables with thought leaders in this field, Under the umbrella of "3rd India CISO Meet".

With regards to furthering the national agenda on the development of physical and social infrastructure of Government, PSUs & Enterprise with a heavy emphasis on the improvement of cybersecurity.

23rd June, 2023 - New Delhi

Theme: Empower Your Digital Transformation

In current times, all organizations be it Private, PSUs or Government departments need to navigate the digital era, effectively serving citizens and internal employees, improve operational efficiency, and drive innovation across all aspects of their business. It involves improvisation of operations of citizen services, deploying new services faster, and delivering an enhanced and secured user experience.

With this backdrop, Governance Now, in association with BMC Software, takes the opportunity to request you to join the Symposium and share your perspectives, your success stories, and explore the role of #newAI in driving citizen-centric services, enhancing operational efficiency, and fostering innovation, ensuring a successful digital transformation journey.

21st July, 2023 - New Delhi

Theme: Powering The Future Of Digital India With Government Community Cloud

Given the significant role that cloud technology plays in the digital journey of government enterprises, ensuring cybersecurity and data privacy becomes paramount in protecting customer data from breaches. With multiple integrations and technologies on cloud platforms, and the increasing sophistication of cloud-based threats, hackers can exploit vulnerabilities arising from misconfigurations, weak or unauthorized access, or malicious insiders. These breaches can compromise security controls, establish footholds, and move laterally to extract sensitive data. Frequently, vulnerabilities in applications or infrastructure are exploited to gain access to customer data, therefore, it is of utmost importance that the design, deployment, and compliance of any cloud infrastructure hosting government applications prioritize the highest standards and be certified by a competent authority. To address these challenges Governance Now organising DIGITAL PUBLIC SECTOR roundtable.

14th September, 2023 - Mumbai

Theme: Embracing the digital age and Forging new frontiers for PSUs

Governance Now, a premier publication on public policy and governance from Sri Adhikari Brothers Group, is organizing its First West PSU Tech Symposium on 14th September 2023 at Mumbai.

Now, we are expanding our reach to engage with zone-wise state and central PSUs, as well as technology solution providers, to address the digital transformation needs.

Today, technology has become a significant enabler for businesses across all sectors, including the public and private sectors. It plays a highly insightful role in driving optimization and efficiency. Progressive technologies such as blockchain, artificial intelligence, robotics, machine learning, and augmented reality have contributed to sustained growth within the public sector. Automation and digitization of services have led to significant social, economic, technological, and environmental outcomes. The role of technology in government and the public sector is to enhance various processes and improve overall performance.

12th October, 2023 - Mumbai

Governance Now, Indias premier public policy and governance publication from Sri Adhikari Brothers Group is organizing the 6th BFSI Conclave and Awards on the theme Riding the Financial Technology Wave: Beyond Buzzwords on 12th October in Mumbai.

The power of technology has brought a complete paradigm shift in the functioning of banks and the delivery of banking services. The future of banking will look very different from today. With changing consumer expectations, emerging technologies, and new business models, banks must start implementing strategies to help them prepare for banking in 2030. The evolution of innovative, new-age technologies like Automation, Artificial Intelligence (AI), and Machine Learning (ML), are replacing human thinking and urging institutions to revisit their talent landscape and the skills required to stay ahead of the curve.

7th December, 2023 - New Delhi

Theme: Digital Evolution: Adopting to Technology Shifts

Governance Now, a premier publication on public policy and governance from Sri Adhikari Brothers Group, is organizing the 8th India PSU IT Forum on 7th December 2023 in New Delhi. In the past seven editions of the PSU IT Forums Governance Now has been successful in actively engaging IT experts from Indias top PSUs, community, and technology solution providers for addressing the digital transformation needs.

PSUs are enhancing customer experiences through digital platforms, offering user- friendly interfaces for seamless access to services. This enhances user satisfaction, transparency, and accountability. Collaboration is a crucial driver of this transformation, as PSUs form partnerships with tech providers, startups, and research institutions to leverage external expertise and drive innovation. In essence, PSUs are proactively leveraging emerging technologies as catalysts for change, fostering operational excellence, innovation, and sustainable growth. This transition to a technology-enabled environment reshapes internal operations and redefines interactions with the public, ushering in a more efficient and citizen-centric governance framework.

19th January, 2024 - New Delhi

Led by Honble Prime Ministers vision of Digital India, India has evolved into a vibrant digital economy. Digital India has revolutionized the provision of government services to millions nationwide. As this ground breaking initiative advances to its next phase, it aims to ensure citizens access to services anytime, anywhere, meeting the expectations of an increasingly tech-sawy population. Indias Ministry of Electronics and Information Technology (MeitY) wants to set up a National Government Cloud to store sensitive government and defence-related data locally.

Governance Now along with Tata Communications is organising an exclusive Gov- tech Symposium on the theme Digital India 2.0: Advancing Government-to-Citizen Services through Cloud on 19th January 2024 at Shangri-La, New Delhi as we delve into the transformative power of sovereign cloud in safeguarding sensitive information and meeting the ever-evolving compliance standards. This session is designed to equip you with insights into the strategic advantages and robust security measures that define the trajectory of sovereign cloud adoption.

14th March, 2024 - New Delhi

Theme: Fortifying Railways Infrastructure for Safety and Resilience in the Digital Era

By addressing these aspects comprehensively, rail and metro operators can create a secure environment, safeguarding both the physical and digital elements of their transportation networks. Rail and metro systems store sensitive data related to passengers, schedules, and operations. Ensuring the protection of this data is crucial to prevent unauthorized access, data breaches, and potential misuse. Encryption and secure storage practices are employed to safeguard sensitive information. The integration of emerging technologies, such as artificial intelligence and machine learning, is considered for advanced threat detection and predictive analysis to stay ahead of evolving cybersecurity threats.

Governance Now, the premier publication on public policy and governance from Sri Adhikari Brothers Network is organizing the Railtech Cyber sabha on 14th March 2024 at New Delhi. The roundtable discussion is a significant initiative that acknowledges the importance of a robust cybersecurity infrastructure, innovation and technology in providing an efficient and reliable transport system.

22nd March, 2024-New Delhi

Governance Now proudly unveils the 10th edition of its prestigious PSU Awards, dedicated to recognizing the impactful contributions of Public Sector Undertakings (PSUs) that have played a pivotal role in the nations growth. This marks a decade of celebrating excellence in the public sector.

Having successfully conducted nine previous chapters , our awards ceremony has consistently attracted distinguished guests, who have graced the occasion to acknowledge the noteworthy endeavours of PSUs and commend their significant achievements. Join us as we continue this tradition of honoring excellence in the public sector for the 10th consecutive year!

OPPORTUNITIES AND THREAT:

Opportunities:

Learning Curve: The immense experience of the promoters in the media industry has proved to be an added advantage in understanding the taste of audience and providing differentiated contents.

Digitization: Internet penetration is grown exponentially now with 5G on the anvil. With the world becoming a Global Village and Digitization playing a vast role in it, the youth population have shifted to the digital media. The adoption of Digitalization/Webinar model of business has become an integral part of the success for the socio political development of the Country and our Company.

Challenges and Threats:

Maintaining the Brand Value - The success of seminar business is highly dependent on our product maintaining its brand value.

Consumer Data- Access to customer data is getting harder with cookie degradation and the growth of walled content gardens. To overcome these barriers to personalisation, we have to focus more on niche sectors where segmentation is easy.

Updated with Consumers changing Interest- Getting connected at right time with changing Consumers Interest is vital point.

Bringing Corporate Sponsorship - Engaging corporates for seminars on a continuous basis.

Business Risks- Having a successful turn out at seminars is key to success of business model and thus revenue generation.

Competitive Era - In this extreme competitive era, maintaining the current position and looking for consistent growth is making company in becoming vital player in the market.

Revenue Risks

The Company earns revenue by advertising, sponsorship and on-ground or Virtual conferences. Any change in the quality of the content or the ratio of advertisements or sponsorship can affect the revenues of the Company.

Technological Risks

With broadband and smartphones penetrating the markets rapidly, there is an increase in usage of online availability of news and hence, the Company aims at improving the content displayed on its website www.governancenow.com and also on digital course as such YouTube to compete with other publication houses.

FINANCIALS

Disclosure of Accounting Treatment:

The financial statements of the Company for the year ended March 31,2024 have been prepared in accordance with the Indian Accounting Standards (IND AS) prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India and there is no change in the same.

Share Capital

As on March 31,2024, the Authorized Share Capital of the Company stood at Rs.1,103 lakh divided into 109.9 lakh Equity Shares of Rs.10/- each and 0.4 lakh 0.01% Non-Convertible Non-cumulative Redeemable Preference Shares of Rs.10/- each.

As on March 31, 2024, the Paid-up Share Capital of the Company stood at Rs.1,049.37 lakh divided into Rs.1,048.37 lakh comprising of 104.83 lakh Equity Shares of Rs.10/- each full paid-up and Rs.1 lakh comprising of 0.1 lakh 0.01% Non-Convertible Non-Cumulative Redeemable Preference Shares of Rs.10/- each fully paid-up.

Other Equity:

The total Reserves and Surplus as at March 31, 2024, amounted to Rs. (1172.90) lakh as per statement of Profit and Loss including Rs. (109.31) lakh as retained earnings and Rs. 0.80 lakh as other comprehensive income as per statement of Profit and Loss.

Long Term Borrowing:

There is no long term borrowings as on March 31,2024.

Short Term Borrowing:

The total short term borrowings as on March 31,2024 is 197.71 lakh.

Fixed Assets:

Depreciation of Rs.80.17 lakh was charged to the statement of Profit and Loss. The Net Block of Tangible Fixed Assets as on March 31,2023 is Rs.5.69 lakh. The goodwill on demerger as on March 31,2024 amounted to Rs.141.11 lakh.

Investments:

The Company made an investments Rs. 0.01 lakh, during the financial year under review.

Revenues:

The Company earned total revenues of Rs.176.83 lakh during the year ended March 31,2024 through business activities. Expenses:

The operating expenses of the Company for the year ended March 31,2024 is Rs.307.27 lakhs.

Critical accounting policies

The principles of revenue recognition are as under:

The Company earns its revenue in the form of advertisement and sponsorship which gets recognized upon receipt of release order. Other revenues are recognized when related event occurs up to the reporting date.

Segment wise Performance

The Company is operating in single primary business segment i.e. Digital Media Websites & MICE. Accordingly, no segment reporting as per Accounting Standard-17 has been reported.

Internal Controls and Adequacy of those controls

Adequate systems of internal controls that commensurate with the size of operation and the nature of business of the Company have been implemented. Risks and controls are regularly viewed by senior and responsible officers of the company that assure strict adherence to budgets and effective use of resources. The internal control systems are implemented to safeguard Companys assets from unauthorized use or disposition, to provide constant check on cost structure, to provide financial and accounting controls and implement accounting standards.

Human Resources

Human capital is a very important asset in a media Company. The Company has built up a human resource structure, which has enabled the Company to grow and take up challenges. The Company has a qualified team of professionals.

As on March 31,2024, the Company had 10 (Ten) permanent employees on its payroll.

Outlook

With the growing importance of digital media, e-magazines, smart phones and the convergence of media and technology, we are aiming at monetizing the Companys content through induction of emerging technology platforms and improvements, so as to offer next generation features on multiple-media including the digital media, web, smart phones, tablets, and other digital devices and e-commerce business. The Company is proactively planning to place its readers and advertisers at the cutting edge of technology.

The industry is undergoing transformation, driven by digital technologies, opportunities for further penetration of the billion strong markets, and an enabling regulatory framework. At the same time, it remains sensitive to the economic situation, and a lot will depend on its ability to manage the risks of continued shortage of skilled manpower, and ability to spur end user pricing across segments.

Details of significant changes in key financial ratios:

Ratios	Formula Used	FY 23-24	FY 22-23
Debtors Turnover	Revenue from operations / Average Debtors	2.35	0.00
Inventory	COGS / Average Inventory Turnover	NA	NA
Interest Coverage Ratio	Earnings before Interest and Tax / Interest Expense	(21.94)	(2.60)
Current Ratio	Current Assets / Current Liabilities	0.28	0.76
Debt Equity Ratio	Debt / Equity	(1.59)	(50.60)
Operating Profit Margin (%)	EBITDA / Revenue from operations	(0.11)	0.04
Net Profit Margin (%)	PAT without exceptional items / Revenue from operations	(0.54)	(0.45)
Return on Net worth (%)	PAT without exceptional items / Total Equity	0.88	6.17

Current Ratio: During the F.Y 2023-24 the Current liabilities are reduced due to repayment of liability which result into change in ratio.

Debt Equity Ratio: During the F.Y 2023-24 the Company made the payment of liability which result into Debt Equity Ratio.

Net Profit Ratio: The loss of the Company during the year has increased as compared to previous year which there is change in ratio.

Note: Debt Equity Ratios has only long/short term loan from institutional/others as a debts.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations may be "forward- looking statement" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/ supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and other incidental factors.