MUMBAI: After years of struggle Japanese consumer electronics and media conglomerate Sony has finally managed to turn things around. For the first time since 2008, it has posted a profit.

For the fiscal ended 31 March 2013, the company made a net profit of $458 million, compared with a year-ago loss of $5.7 billion. Sony?s operating profit was $2.45 billion after an operating loss of $820 million in the previous fiscal year. Revenue rose by 4.7 per cent to $72.3 billion.

Profits came from selling key assets such as office buildings, one of which is its headquarters in New York. It benefited from current weakness in the Japanese currency. So its products are cheaper to buy outside Japan.

On 20 March, 2013, Sony completed the acquisition of an additional 32.39 per cent of the shares of Multi Screen Media (MSM). As a result of this transaction, Sony?s total equity interest in MSM increased to 94.39 per cent. The aggregate cash consideration for the additional shares was $271 million, of which $145 million was paid at the closing of the transaction. An additional $42 million was paid on 15 April, 2013. The remaining $84 million will be paid in two equal annual installments of $42 million on 15 April, 2014 and 15 April, 2015.

Pictures: Sales in the Pictures division increased by 11.4 per cent year-on-year to $7.7 billion. The significant increase in sales was primarily due to the favourable impact of the depreciation of the yen against the U.S. dollar and significantly higher theatrical revenues from the current year?s film slate, partially offset by the sale of a participation interest in ?Spider-Man? merchandising rights in the previous fiscal year.

Films that significantly contributed to the higher theatrical revenues included ?Skyfall? and ?The Amazing Spider-Man?. Television revenues also increased primarily due to higher subscription revenues from SPE?s television networks and higher home entertainment revenues from US made-for-cable television programming.

Operating income increased to $ 509 million. This significant increase was primarily due to the stronger performance of the current year?s film slate and lower theatrical marketing expenses, partially offset by 21.4 billion yen of operating income generated from the above-mentioned sale of an interest in Spider-Man merchandising rights in the previous fiscal year. The performance of the current year?s film slate reflects the strong theatrical performance of the two films mentioned above, partially offset by the underperformance of ?Total Recall?.

The segment results also benefitted from higher home entertainment revenues from U.S. made-for-cable television programming.In terms of outlook for the segment sales are expected to increase significantly due to the depreciation of the yen against the US dollar in the assumed foreign exchange rates for the fiscal year ending 31 March, 2014. On a US dollar basis, sales are expected to be essentially flat year-on-year with continued growth in television revenues offset by lower theatrical and home entertainment revenues compared to the previous fiscal year in which several major releases performed well.

Operating income is expected to be essentially flat year-on-year on both a yen and a US dollar basis as the positive impact of the increased television revenues is offset by lower theatrical and home entertainment revenues and an increase in investment in new television programming

Music: In the music division sales were essentially flat year-on-year at $4.6 billion. This was due to the continued worldwide contraction of the physical music market and the impact of a larger number of successful releases in Japan in the previous fiscal year, offset by the favorable impact of the depreciation of the yen against the US dollar and growth in digital revenue

Although the physical music market is expected to continue its worldwide contraction, sales are expected to increase primarily due to the year-on-year depreciation of the yen in the assumed foreign exchange rates and an increase in digital revenue. Operating income is expected to increase slightly due to the above-mentioned reasons for the increase in sales.

Gaming: In the gaming division sales decreased by 12.2 per cent year-on-year to $7.5 billion. Sales to external customers decreased 22.5% year-on-year. This significant decrease was primarily due to a decrease in unit sales of PlayStation3 hardware and PlayStation Portable hardware and software, as well as PlayStation Vita hardware, partially offset by the favourable impact of foreign exchange rates.

Sales are expected to increase significantly primarily due to the planned introduction of the PlayStation 4 in the fiscal year ending 31 March 31, 2014. Operating income is expected to be essentially flat year-on-year primarily due to an increase in research and development expenses and marketing expenses related to the introduction of the PS4, offset by the impact of the above-mentioned increase in sales.

The Future: For the fiscal year ending 31 March, 2014, the Pictures, Music and Financial Services segments are expected to continue to generate stable profit, and Sony is working toward the important goals of turning Electronics to profit and further strengthening Sony?s financial foundation. In order to achieve a return to profit in Electronics, it is especially important for the mobile businesses, particularly smartphones, to demonstrate a significant improvement in operating results and for the television business to turn a profit.

With regards to smartphones, the Xperia TMZ has been enjoying strong consumer a cceptance since it went on sale in February 2013 due to its various cutting-edge technologies from the Sony group. By further accelerating similar initiatives, Sony aims to expand its sales and improve profitability during the fiscal year ending 31 March, 2014 in the smartphone market, which is continuing to grow. The television business progressed more than expected towards its transformation to a profitable structure, and significantly reduced its losses during the recently concluded fiscal. Sony aims to turn the television business to profit during the fiscal ended 31 March, 2014 by continuing to reduce costs and strengthening product appeal through such means as improving the picture and sound quality of full HD models and adding 4K LCD TVs to the product line-up.

On 12 April, 2012, Sony had announced a series of strategic initiatives to be introduced under the new management team appointed on 1 April, 2012. By implementing a rapid decision-making approach that draws on the strengths of the entire Sony group as One Sony, the company says that it aims to revitalise and grow its electronics businesses to generate new value, while further strengthening the stable business foundations of the entertainment and financial services businesses.

NEW DELHI: Four schemes finalised during the Eleventh Plan by the Information and Broadcasting Ministry have now been shifted to the 12th Plan because of tardy progress in getting approvals of the Planning Commission.

Noting that the Ministry has failed to learn lessons from the past, the Parliamentary Standing Committee for Information Technology has exhorted the Ministry to look into this and ensure that the implementation of the schemes start during the first year itself or in the earlier part of the year so that the allocations earmarked for the year 2012-13 are utilised.

The schemes are setting up of a Global Film School; setting up of a National Centre of Excellence for Animation, Gaming and Special Effects; National Film Heritage Mission under Film Sector; and an International Channel under Doordarshan, which could not be formally approved during the long period of five years.

The plan for upgrading the Film and Television Institute of India into a Global Film School had been finalised with comprehensive rationalisation and restructuring but it will now be included in the umbrella scheme of Infrastructure Development programme relating to Film Sector in the 12th Plan.

The National Centre of Excellence for Animation, Gaming and Special Effects and the Doordarshan International channel are now new schemes under the 12th Plan, while the National Film Heritage Mission is part of the Twelfth Plan new scheme as a Special Mission.

When asked about timeline chalked out for early approval and implementation of these Schemes, the Ministry has replied that the approval of new schemes involves a four stage appraisal-cum-approval process: in-principle approval; preparation of Detailed Project Reports (DPRs) and preparation of EFC /SFC memos; appraisal of SFC / EFC memos; and approval by the competent authority.

NEW DELHI: Concerned over the ‘unsatisfactory performance‘ of the Information and Broadcasting Ministry in spending just over 30 per cent of its allocation in the first four months of the Eleventh Plan, a Parliamentary Committee has asked the Ministry to analyse the reasons for under utilisation of outlay scheme/sector-wise.

The Standing Committee on Communications and Information Technology dealing with the budgetary demands of the I&B Ministry in a recent report asked the Ministry to "gear up its monitoring mechanism" to ensure that the allocated funds are fully utilised and all the on-going schemes may be strictly monitored to keep pace with the expenditure. The Committee has also sought a report on the specific steps taken by the Ministry in this regard.

It noted that the overall outlay for 2011-12 had been increased by Rs 255.8 million over the Budgetary Allocation for 2010-11, which works out to insignificant increase of 0.97 per cent.

For the Eleventh Plan (2007-12), the Planning Commission had approved total outlay of Rs 54.39 billion. During a Mid Term appraisal, the outlay was enhanced to Rs 63.11 billion due to additional outlay for "High and Lower Power Transmitters for Jammu and Kashmir Border Areas" and "Commonwealth Games 2010 and Related Programmes".

But the Committee noted that the actual expenditure during the first four years of the Eleventh Plan was Rs 19.17 billion (Information Sector Rs 2.55 billion, Film Sector Rs 1.98 billion and Broadcasting Sector Rs 14.64 billion), which is just 30.38 per cent of the total Budgetary allocation.

The Committee noted it had expressed serious concern over inability of the Ministry to fully utilise the outlay in its Sixth Report on Demands for Grants (2010-11), and had pointed out that under-utilisation of funds is a perennial problem with the Ministry, which is an indicator of its poor budgeting mechanism and failure of monitoring mechanism to review the implementation of various schemes/projects.

In spite of that, the Committee noted that under-utilisation still persists under different schemes/projects in all three sectors of the Ministry. Besides inability of the Ministry to fully utilise the outlay, delay in approval of important schemes of the Ministry, as discussed in the subsequent part of the report, are areas of concern. The Committee, therefore, impress upon the Ministry to take steps to make the implementation mechanism more effective.

Referring to tardy implementation of schemes, the Committee said that this "clearly indicates that there are serious problems in the whole planning process which is not conducive for the overall functioning of the Ministry."

The Committee desired that the Ministry should work out a more streamlined approval system so that the situation of non-clearance of the schemes does not persist. The Committee recommended that the Ministry should take corrective measures so that the situation of non-clearance of schemes does not get repeated during the Twelfth Plan.

According to the Ministry, it had formulated 86 schemes at the beginning of the Eleventh Plan. However, the total number of schemes was reduced to 65 at the time of Zero Based Budgeting exercise undertaken by the Planning Commission in May 2007.

During examination of the previous year‘s Demands for Grants (2010-11), the Committee had noted that out of total 38 new schemes, 13 schemes were awaiting approval and out of 28 on-going schemes, approval for two schemes was pending. Thus in total 15 schemes were pending clearance/approval.

Having observed that delay in approval of the schemes was one of the factors responsible for under-utilisation of outlay, the Committee in the Sixth Report on Demands for Grants (2010-11) had asked the Ministry to work out a more streamlined approval system.

In spite of that, four important schemes of the Ministry, which include Global Film School, Setting up of a National Centre of Excellence for Animation, Gaming and Special Effects, the National Film Heritage Mission under the Film Sector and the International Channel under the Broadcasting Sector were still awaiting approval/clearance even when Annual Plan 2011-12 was in the last year of the Eleventh Plan.

The Committee disapproved the way projects are being planned by the Ministry. All the schemes were formulated at the beginning of the Eleventh Plan and in the process four precious years were lost.