Karachi October 10 2021: Under Independent Auditor’s Report for the financial year ended June 30, 2021, the auditors have raised concerns over the material uncertainty related to Going Concern because Company is facing liquidity crunch and, as of date, the Company’s current liabilities exceeded its current assets by Rs. 740 million, as per information shared by the company.
The steps that were taken by management to improve the financial results of the Company include development of social media wing of each of its product to cater the conversion of customers from print/ electronic media to digital media.
Prioritized digital advertisement as one of the main revenue stream. To get the maximum revenue out of this sector, the Company is maintaining separate websites, Face book pages, Instagram accounts, Twitter accounts, blog writing forum and snap chats for each business unit.
Paid special attention to social media TGIF (Thank Goodness It’s Friday) magazine. TGIF magazine was published on each Friday. The print version of this magazine is closed but social media of this magazine is fully active.
Daily Aajkal Urdu Newspaper has been re launched. The paper being an Urdu news paper has covered the majority of the audience because of the commonly used language "Urdu". Daily Aajkal has been re launched with 12 numbers of pages.
Paid special attention to advertisement revenue through supplements. The major supplement categories that were covered in this financial year include but not limited to national days of other countries, fashion industry, sports, government sector and economic sector.
However, the management of the Company is also confident that by the following further strategi changes/ improvements, the Company will cover above mentioned loss as well and will come out of this current situation to continue its business as a going concern as the management is starting a Web TV that will mainly cover News and Current Affairs along with Fashion and Sports events.
The management is in planning phase to launch other weekly magazines in digital form that will cover comic, entertainment, business, travel and sports categories.
The Management is also planning to purchase and install its offset printing machines so that the Company can offer offset printing services to outside customers as well.
Electronic media satellite technology is being upgraded to MPEG 4. This will materially reduce the up-linking cost and will result in reduced bandwidth that is required to uplink the channels.
During the period under review the Company reported an after tax loss of Rs. 114 million as compared to a loss of Rs. 110 million in corresponding period last year. Turnover has been decreased to Rs. 118 million compared to Rs 156 million in corresponding period last year.
Cost of production reduced to Rs 113.2 million as compared to Rs 138.5 million in corresponding period along with decrease in Admin and Selling expenses by Rs. 5.2 million (FY 2020-21: 91.6 million and FY2019-20: 96.8 million). Finance cost is also decreased by Rs. 0.1 million (FY 2020-21: 51.2 million and FY 2019-20: 52.1 million).
Revenue has been decreased due to Corona pandemic during complete financial year 2020-21, non-release of advertisement campaign from Government and shift of advertising customer from print media to social media To cater the impact of decrease in revenue due to above mentioned factors, the Company has taken steps to reduce cost of production and Admin and Selling expenses through right sizing and outsourcing of production services. In addition, the management of the company has also designed several combined packages of print and social media to attract advertisers.