Lok Sabha Question No. 2355 (UNSTARRED), answered on 2016-11-30
Subject: E-Auctioning of FM Radio Channels
Ministry: INFORMATION AND BROADCASTING
Asked by: M. UDHAYAKUMAR

## GOVERNMENT OF INDIA MINISTRY OF INFORMATION & BROADCASTING

## LOK SABHA UNSTARRED QUESTION NO.2355 TO BE ANSWERED ON 30.11.2016

## E-AUCTIONING OF FM RADIO CHANNELS

## 2355. SHRI ADV. M. UDHAYAKUMAR:

Will the Minister of INFORMATION AND BROADCASTING

be pleased to state:

- (a)     whether  the  Government  has  initiated  the  process  for  e-auctioning  266  FM  radio channel in 92 cities including strategically important areas like border towns of Jammu & Kashmir and the North East;
- (b)     if so, the details thereof;
- (c)     whether the Government has invited applications with a deadline for August 1, 2016 and if so, the details thereof;
- (d)     whether the much anticipated move is expected to bring radio services to small towns and cities; and
- (e)     if so, the details thereof and the result achieved thereon?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF INFORMATION & BROADCASTING, {COL RAJYAVARDHAN RATHORE (Retd.)}

- (a) to (e).  Under batch-II of FM Phase-III, the Government has initiated the process for eauctioning of 266 FM radio channels in 92 cities by issuing a Notice Inviting Applications on  20.06.2016,  and  after  completion  of  due  procedure,  started  the  auction  process  on 26.10.2016.    The  last  date  for  submission  of  applications  was  01.08.2016  which  was revised to 08.08.2016 vide amendment no. 1 dated July 26, 2016 (Annexure-I).  The auction for batch-II is currently in progress.

FM Phase-III Policy aims to expand FM Radio broadcasting to uncovered small towns/cities having population above 1 lakh and 11 border area towns of Jammu & Kashmir and North East States having population less than 1 lakh.

## Annexure-I

## ANNEXURE REFERRED TO IN REPLY TO PARTS (a) TO (e) OF LOK SABHA UNSTARRED QESTION NO. 2355 FOR ANSWER ON 30.11.2016

## No. N-38014/41/2016-FM

## Government of India Ministry of Information and Broadacsting Shastri Bhawan, New Delhi (FM Cell)

Dated the 26 th July 2016

Subject: Amendment No. 1 to NIA on e-Auction of Second Batch of Private FM Radio Phase-III Channels issued on June 20, 2016

The NIA dated June 20, 2016 for e-Auction of Second Batch of Private FM Radio PhaseIII Channels is hereby amended and Amendment No. 1 is enclosed.

2. All other terms and conditions remain unaltered.

Sd/-

(S. R. Yadav)

Deputy Secretary to the Government of India

## e-Auction of Second Batch of Private FM Radio Phase-III Channels

Amendment No. 1

To

Notice Inviting Applications Dated June 20, 2016 (No. N-38014/31/2016-FM)

July 26, 2016

## MINISTRY OF INFORMATION & BROADCASTING GOVERNMENT OF INDIA SHASTRI BHAWAN

## NEW DELHI

## I)          Amendment to Clause 1.5.1, Sr. no. 5 (Last date for submission of applications)

|         |                                          | FOR                            | R E A D                       |
|---------|------------------------------------------|--------------------------------|-------------------------------|
| Sr. No. | Activity                                 | Date / Number of Days          | Date / Number of Days         |
| 4       | Clarifications to NIA                    | 21 July, 2016                  | 26 July, 2016                 |
| 5       | Last Date for submission of Applications | 01 st August, 2016, by 5:00 PM | 08 th August, 2016, by 5:00PM |

## II)        Amendment to Clause 3.4.4

## F O R:

- 3.4.4                The cutoff date for determination of net worth shall be as mentioned below:
- 3.4.4.1 The applicant company shall furnish annual reports and audited final accounts for the last three years, or from the date of incorporation, whichever is later, till 31st March, 2016, along with its net worth as on 30th June, 2016 or any date subsequent thereto up to  the  date  of  submission  of  the  application,  certified  by  the  statutory  auditors,  to support its claim of financial competence.
- i. In  case  audited  financials  of  30th  June  2016  or  a  later  date  are  not  available  then statutory  auditors  certificate  based  on  audited  financials  of  31st  March  2016  apart from  limited  review  for  quarter  ending  on  30th  June  2016  or  a  later  date  will  be required.
- 3.4.4.2 An   applicant   company   registered   after   31st   March,   2016   shall   only   have   to demonstrate its net worth as on 30th June, 2016 or any date subsequent thereto up to the  date  of  submission  of  the  application  through  its  paid  up  equity  supported  by requisite  documents  including  a  Net  Worth  certificate  from  the  statutory  auditor along with certified financial statements on which Net Worth Certificate is issued.

## R E A D :

- 3.4.4                The cutoff date for determination of net worth shall be as mentioned below:

## 3.4.4.1

- (a)  In case, the applicant company is a listed company, the applicant company shall furnish
- (i)         the annual reports and audited final accounts for the last three years, or from the date of incorporation, whichever is later, till 31st March, 2016.
- (ii)        Net worth certificate from Statutory Auditor on the basis of audited financial statements as on 31.03.2016 in  the format prescribed in 10.5 (A) and

## 3.4.4.2

- (i)         The  applicant  company  registered  after  31st  March,  2016  shall  only  have  to demonstrate its net worth as on 30th June, 2016 or any date subsequent thereto up to the date of submission of the application by submitting Provisional financial statements as on 30.06.2016 or any date subsequent thereto up to the date of submission of the application, duly certified by a Practicing Chartered Accountants in terms of Standards of Related Services - 4410 (Revised) issued by Institute of Chartered Accountants of India and Net worth certificate from Practicing Chartered Accountant  as  on  such  date based  on  the  such  certified  provisional  financial statements in  the format prescribed in 10.5(B).

Note: The applicant company is required to submit:-

- (1)  Audited financial statements as on 31.03.2016 or Limited Reviewed financial statements as on 30.06.2016  within  one  week  from  the  date  of  Annual  General  Meeting  /  Board  Meeting approving the same.
- (2)  Net worth certificate from Statutory Auditor on the basis of Audited financial statements as on 31.03.2016 or Limited Reviewed financial statements as on 30.06.2016 in  the format prescribed in  10.5  (C).  Such  Net  worth  should  suffice  the  requirement  of  Financial  Competence  stated  in NIA.
3. (iii)       Provisional financial statements as on 30.06.2016 in the format prescribed in Part  I  &  Part  II  of  Schedule  III  of  the  Companies  Act  2013  certified  by  a Practicing Chartered Accountants in terms of Standards of Related Services 4410 (Revised) issued by Institute of Chartered Accountants of India
4. (iv)       Net worth certificate  from  Practicing Chartered Accountant on the basis of certified  Provisional  financial  statements  as  on  30.06.2016  referred  in  (iii) above in  the format prescribed in 10.5 (B)
5. (b)  In case, the applicant company is an Unlisted company, the applicant company shall furnish:
6. (i) Annual  reports  for  the  year  2013-14  &  2014-15  or  from   the   year  of incorporation, whichever is later
7. (ii) Provisional financial statements as on 31.03.2016 & 30.06.2016 in the format prescribed in Part I & Part II of Schedule III of the Companies Act 2013 duly certified  by  a  Practicing  Chartered  Accountants  in  terms  of  Standards  of Related Services - 4410 (Revised) issued by Institute of Chartered Accountants of India and
8. (iii) Net  worth  certificate  from  Practicing  Chartered  Accountant  on  the  basis  of certified  Provisional  financial  statements  as  on  31.03.2016  &  30.06.2016 referred in (ii) above in  the format prescribed in 10.5 (B)

## 10.5 Format for Certificate of Net Worth

## For the purpose of submission of Net Worth Certificate with Application

## (A) For Listed Company for Net worth as on 31.03.2016 by statutory Auditors

We have audited the Books of Accounts of                       for the financial year ended on and certify that the 'Net Worth' of M/s the Applicant Company as on is Rupees lakh (rupees in            words lakhs) as follows :

|   Sl.No. | Particulars                                    | Amount in lakhs   |
|----------|------------------------------------------------|-------------------|
|        1 | Book Value of assets                           |                   |
|        2 | Book Value of fictitious and intangible assets |                   |
|        3 | Liabilities other than owner's funds           |                   |
|        4 | Net Worth {1-(2+3)}                            |                   |

Statutory Auditors (Firm Name, FRN, CA Name, Designation, Membership No.)

Date:

Place:

Note:

## NET WORTH

The excess of the book value of assets (other than fictitious and intangible assets) of an enterprise over its liabilities. This is also referred to as Net assets or shareholder's funds

## Book Value of assets

The amount at which an item appears in the books of account or financial statement. It does not refer to any particular basis on which the amount is determined. Example: cost, replacement value etc.

## Fictitious assets.

Items grouped under the assets in a balance sheet which has no real value (eg. The debit balance of the profit and loss account)

## Liabilities

The financial obligation of an enterprise other than owner's funds.

## (B) For All other cases:

We  have  compiled  the  Books  of  Accounts  of for  the  financial  year  ended  /  period ending  on                   and  certify  that  the  'Net  Worth'  of  M/s                                      the  Applicant Company as on is Rupees follows : lakh (rupees in                 words lakhs) as

|   Sl.No. | Particulars                                    | Amount in lakhs   |
|----------|------------------------------------------------|-------------------|
|        1 | Book Value of assets                           |                   |
|        2 | Book Value of fictitious and intangible assets |                   |
|        3 | Liabilities other than owner's funds           |                   |
|        4 | Net Worth {1-(2+3)}                            |                   |

Practising Chartered Accountants ( Firm Name, FRN, CA Name, Designation, Membership No.)

Date :

Place :

Note:

## NET WORTH

The excess of the book value of assets (other than fictitious and intangible assets) of an enterprise over its liabilities. This is also referred to as Net assets or shareholder's funds

## Book Value of assets

The amount at which an item appears in the books of account or financial statement. It does not refer to any particular basis on which the amount is determined. Example: cost, replacement value etc.

## Fictitious assets.

Items grouped under the assets in a balance sheet which has no real value (eg. The debit balance of the profit and loss account)

## Liabilities

The financial obligation of an enterprise other than owner's funds.

## (C )   Format for the purpose of submission of Net Worth Certificate within one week from date of Annual General Meeting / Board Meeting

We have audited the Books of Accounts/ Carried out limited review of                         for the financial year/period ended month-day-year                  and certify that the 'Net Worth' of M/s the Applicant Company as on is Rupees                lakhs (rupees in words lakhs) as follow:-

|   Sl.No. | Particulars                                    | Amount in lakhs   |
|----------|------------------------------------------------|-------------------|
|        1 | Book Value of assets                           |                   |
|        2 | Book Value of fictitious and intangible assets |                   |
|        3 | Liabilities other than owner's funds           |                   |
|        4 | Net Worth {1-(2+3)}                            |                   |

Statutory Auditors ( Firm Name, FRN, CA Name, Designation, Membership No.)

Date :

Place :

Note:

## NET WORTH

The excess of the book value of assets (other than fictitious and intangible assets) of an enterprise over its liabilities. This is also referred to as Net assets or shareholder's funds

## Book Value of assets

The amount at which an item appears in the books of account or financial statement. It does not refer to any particular basis on which the amount is determined. Example: cost, replacement value etc.

## Fictitious assets.

Items grouped under the assets in a balance sheet which has no real value (eg. The debit balance of the profit and loss account)

## Liabilities

The financial obligation of an enterprise other than owner's funds.