Chennai : The Friday interview by S L Narayanan, CFO of Sun TV Network has put the channel in the dock, with the Bombay Stock Exchange (BSE) seeking clarification with reference to a news article that appeared on 1st August 2015, in the edition of Business Standard, captioned ‘Sun TV to invest Rs 450 Cr in buying movie rights’.
Clarification by Sun TV Network to the BSE, stated, “The company has always been buying satellite broadcast rights from film producers to provide content for our various programming initiatives for the past several years. In that sense, the above news item is about a routine activity and does not constitute something new or extraordinary. The amounts spent on purchase of satellite broadcast rights have been around the same ballpark for the past couple of years and appropriately disclosed in annual accounts.”
The statement further added, “Since we believed bona fide that any disclosures about the amount allocated for purchase of movie broadcast rights are routine in nature, it does not qualify under clause 36 of the Listing Agreement.”
Sun TV Network has been in the news for the Aircel-Maxis deal and misuse of BSNL phone lines, where former Union Telecom Minister Dayanidhi Maran had allegedly arm twisted Aircel owner C Sivasankaran to sell his stake to Maxis in first case and also alleged of setting up a illegal telephone exchange in his premises and causing loses in crores to the exchequer.
Companies used to declare their larger investment plans in advance to boost the morale of share holder during difficult times, as part of their PR exercise and the recent interview by S L Narayanan, CFO of Sun TV Network was seen as a part of the company’s ongoing efforts to regain the confidence of the market after the recent set back witnessed by the company due to the denial of security clearance by the Home Ministry and Information and Broadcasting Ministry.