BIG SCAM of Madhya Pradesh today media limited coming in IPO
We have come to know that a newspaper of Madhya Pradesh under the name of “Madhya Pradesh today media limited” is coming with an IPO on 19th September 2017 with all the forged documents, company details and prospectus.
1) This media group claims that they have 13 editions of its newspaper Pradesh today in the country with nearly about 20 lakhs of circulation. But according to RNI & DIRECTORATE OF ADVERTISING AND VISUAL PUBLICITY (DAVP) they have claimed and certified a total of circulation of 9,12,290 copies per day in 9 editions only.
2) Company has shows its turnover of Rs 19 crore 27 lakh 55 thousand in year 2017 and Rs 15 Crore 24 lakh 25 thousand in year 2016. If we take circulation of 19 lakh 71 thousand 217 copies per day as per the prospectus company requires a consumption of approx 65 Mt newsprint per day which means it would require 23,140 MT per year with an average cost of Rs 36,000 per MT the PURCHASE COST itself will be of Rs 83 Crore per year which is way high then the turnover claimed to be 19 crore 27 lakh 55 thousand in year 2017.
3) As per the companies Statement of Profit and Loss which states the cost of material consumed is only Rs 2,57,53,898 in year 2017 and Rs 2,36,41,591 in year 2016. Whereas they are claiming circulation of 19 lakh 71 thousand 217 copies per day which requires purchase of approx 23,140 MT per year of newsprint of Rs 83 Crore. This shows how forged is this company that they are claiming a huge circulation which requires Rs 83 crore of newsprint purchase and in their P&L statement they are showing just Rs 2,57,53,898 which is not even 2% of the claim.
4) Company has claimed and got certified a total of circulation of 9,12,290 copies per day in 9 editions as per RNI & DIRECTORATE OF ADVERTISING AND VISUAL PUBLICITY (DAVP). Here this claim is also fake and achieved through forged documents. As for a circulation of 9,12,290 copies approx. 28MT of newsprint is required per day and 9,968MT is required per year which at an average cost of Rs 36,000 per MT turns to be Rs. 35 crore 88 lakh 48 thousand which is also nowhere near to the figures of raw material purchased declared by the company in its P&L statement. This clearly shows that this Madhya Pradesh today media limited company has submitted forged documents in RNI and DAVP to get their circulation certificates and government rates.
5) Madhya Pradesh today media limited company has done this scam by submitting all the forge documents in the RNI for circulation certificate and to the DAVP for the rates at high fake circulation to get high Govt. Rates through DAVP and get government advertisements at huge costs through DAVP, State Government’s and independent government bodies. Because of which Indian government has faced huge losses just because this forge newspaper claiming forge circulation per day. Where in period of 2016-17 DAVP has given the advertisement of Rs 1,82,51,010 and Rs 1,90,50,888 in period of 2017-18 till date 16/9/17 (Source : DAVP website- NEWSPAPER WISE COMMITTMENT FOR ALL ADVERTISEMENTS)of which break-up is as below :-
6) Here the most funny thing is that this company which claims a circulation of 19 lakh 71 thousand 217 copies per day as per prospectus which turns to 70 crore 17 lakh 53 thousand 2 hundred and 52 copies in a year has generated just Rs. 1 crore 6 lakh 25 thousand from circulation sales i.e. they sold their copies Rs 0.015 /- per copy.
7) This company doesn’t have their own printing units for printing their newspaper Pradesh Today, then too in their report they have not mentioned the expenses of printing.
8) With all the forge documents and reports this company is coming into market with an IPO to acquire money from investors and con them because after this report Central Government and State Government will raise a recovery of advertisements because this company has attained advertisement through forged documents and forged circulation claims.
Thus it is a request in the public interest of nation and its citizens to immediately take actions and STOP Madhya Pradesh today media limited IPO and STOP This BIG SCAM.
–मनिंदर सारा
