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Budget has negative impact, say media analysts
MUMBAI: Motilal Oswal’s Inquire Equity Research (MOSt) report titled “Union budget 2003-04: a review” says that the provisions of the budget indicate that the total effective tax on set top box (STBs) imports would fall from 50.8 per cent to 45 per cent. The union budget would have an overall negative impact on broadcasters and MSOs (multi-system operators), the report adds.
Kotak Securities’ research report titled “Union budget 2003-2004” maintains that the budget hasn’t had any significant impact on the media sector. It has also maintained its “in-line” rating (in line with the sensex fluctuations) on Zee at a price of Rs 84.
The following are some excerpts from the analyst reports regarding the impact of the budget 2003-04 on issues related to the media sector companies:
* Higher service tax will hurt all broadcasters:
The impact of higher service tax will be negative for all broadcasters including the listed ones namely Zee Telefilms (MOSt rating of “Buy”), Television Eighteen and ETC Networks.
While the increased service tax can be passed on to cable subscribers because the increase is only by 3 per cent, it might not be easy to pass on the incremental service tax burden on advertisers due to the prevalent weakness in ad markets.
The MOSt report states that there has been stiff resistance exhibited by big advertisers like HLL, Nestle, Pepsi to pay up the 5 per cent service tax in the past. The issue had been resolved and broadcasting companies had to take some hit in absorbing service tax in some specific cases.
The MOSt Inquire analyst team believes that the increased service tax would hurt the advertising business in India even if individual broadcasters manage to pass it on to advertisers.
Kotak Securities’ budget report states that Zee Telefilms will have to pass on the increased service tax to its advertisers. It adds that there is no significant bearing on BalajiTelefilms.
* Marginal cut in import duty on set top boxes a negative surprise:
Reduction in import duty post budget 2003-04
Set Top box
CIF price
Basic duty
CVD
SAD
Landed cost
Total cost
Existing
100
30 per cent
16 per cent
4 per cent
156.83
56.83 per cent
New
100
25 per cent
16 per cent
4 per cent
150.80
50.8 per cent
MOSt Inquire estimates
The cut in peak customs duty will reduce the duty on imports of fully built set top boxes, albeit marginally. The expectations in the industry were of a much larger cut in duty and this clearly is a deemed negative for the industry. This also belies the optimism in industry participants that the cut in import duty on set top boxes would provide a boost to an accelerated implementation of conditional access system (CAS).
This would negatively impact the pay broadcasters, Zee Telefilms and Television Eighteen and MSOs such as Hinduja TMT, says the MOSt Inquire team.
* Reduction in corporate tax surcharge to benefit all companies:
Reduction in corporate tax surcharge from 5 per cent to 2.5 per cent would benefit all the companies, especially Zee Telefilms and Balaji Telefilms that pay high rates of tax.
Kotak Securities report adds that the real impact on receivables, profitability and turnover will be known in May 2003 when Zee will announce its results.
Foreign exchange rate US$1 = Rs 47.63 as on 5 March
NEW DELHI: Hamdard Laboratories gathered a cross-section of India’s achievers in New Delhi on Friday, handing out the Hakeem Abdul Hameed Excellence Awards to figures who have left their mark across healthcare, education, sport, public service and the arts.
The ceremony, attended by minister of state for defence Sanjay Seth and senior officials from the ministry of Ayush, celebrated individuals whose work blends professional success with a sense of public purpose. It was as much a roll call of achievement as it was a reminder that influence is not measured only in profits or podiums, but in people reached and lives improved.
Among the headline awardees was Alakh Pandey, founder and chief executive of PhysicsWallah, recognised for turning affordable digital learning into a mass movement. On the sporting front, Arjuna Awardee and kabaddi player Sakshi Puniya was honoured for her contribution to the game and for pushing women’s participation onto bigger stages.
The cultural spotlight fell on veteran lyricist and poet Santosh Anand, whose songs have echoed across generations of Hindi cinema. At 97, Anand accepted the honour with characteristic humility, reflecting on a life shaped by perseverance and hope.
Healthcare honours spanned both modern and traditional systems. Manoj N. Nesari was recognised for strengthening Ayurveda’s place in national and global health frameworks. Padma shri Mohammed Abdul Waheed was honoured for his research-backed work in Unani medicine, while padma shri Mohsin Wali received recognition for his long-standing contribution to patient-centred care.
Education and social development also featured prominently. Padma shri Zahir Ishaq Kazi was honoured for decades of work in education, while former Meghalaya superintendent of Police T. C. Chacko was recognised for public service. Goonj founder Anshu Gupta received an award for his dignity-centred rural development initiatives, and the Hunar Shakti Foundation was honoured for empowering women and young girls through skill development.
The Lifetime Achievement Award went to former IAS officer Shailaja Chandra for her long career in public healthcare and governance, particularly in the traditional systems under Ayush.
Speaking at the event, Hamdard chairman Abdul Majeed said the awards were a tribute to those who combine excellence with empathy. “These awardees reflect Hakeem Sahib’s belief that healthcare, education and public service must ultimately serve humanity,” he said.
Minister Seth struck a forward-looking note, saying India’s young population gives the country a unique opportunity to become a global destination for learning, health and wellness by 2047.
The ceremony also featured the trailer launch of Unani Ki Kahaani, an upcoming documentary starring actor Jim Sarbh, set to premiere on Discovery on 11 February.
Instituted in memory of Unani scholar and educationist Hakeem Abdul Hameed, the awards have grown into a national platform that celebrates those building a more inclusive and resilient India. For one evening at least, the spotlight was not just on success, but on service with substance.
