finance spec t1 sapm presen

8/3/2019 Finance Spec T1 SAPM Presen

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ENTERTAINMENT & PUBLISHING SECTOR

PRESENTED BY

KAVITA K (KH08JUNMBA73)

SANGHMITRAK (KH08JUNMBA94)

TARUN TIWARI (KH08JUNMBA107)VIJAY POOJARI (KH08JUNMBA110)

Security Analysis & Portfolio Analysis: Prof . Debankur Majumdar

ITM, Kharghar, Navi Mumbai , Batch : XIII


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Entertainment Sector

Market Leader:- INOX Leisure LimitedFollower:- Reliance MediaWorks Limited

Potentially Growing Co.:- Cinemax India Limited


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Inox Leisure Ltd. Introduction

Inox Leisure Ltd- The Company's principal activity is to operate Multiplex Cinema

Theatres. It operates in three segments: Multiplexes, Film Distribution and Power.

Multiplex segment operates and manages Multiplex Entertainment Centres.

Distribution segment distributes movies. Power segment generates wind power.

The Company runs 27 multiplexes in 20 cities with 97screens. Multiplexes arelocated at Pune, Vadodara, Kolkatta, Goa, Mumbai, Bangalore, Indore, Jaipur,

Darjeeling, Kota, Nagpur, Chennai, Jaipur, Bharuch, Vijayawada, Bharuch, Raipur,

Durgapur, Faridabad and Lucknow.

Inox Leisure Ltd. Mode of Business

Multiplexes

Film Distribution

Power


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Particulars (INOX) YEAR (AUDITED) PERIOD 01.04.08 to 31.03.09 (In

Lacs)

Operating Income 22,561.02

Other Operational Income 227.01

22,788.03

Expenditure 20,798.19

Profit Before Tax 1,989.84

Provision for Taxes -599.24

PAT 1,390.60

Reversal of Taxes 1,043.48

Profit 2,434.08

Nos Of Shares 61,457,768.00

EPS 3.96

PE 20.78


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Reliance MediaWorks Ltd. Introduction

Reliance MediaWorks Ltd is Indias largest film and entertainment services

company owned by the Reliance Anil Dhirubhai Ambani Group. Reliance MediaWorks operates BIG Cinemas, India's largest cinema chain with

currently 500 screens spread across India, US, Malaysia and Netherlands.

Reliance MediaWorks has a dominant and comprehensive presence in FilmServices: Motion Picture Processing ; Visual Effects; Film Restoration and imageenhancement; Digital Mastering: Studios and Equipment rentals with facilitieslocated at US and India.

Reliance MediaWorks' television venture, BIG Synergy, is among the top players inthe television programming industry.

In 2001, the company entered the burgeoning multiplex business with the worlds

largest IMAX dome in Mumbai and began to build, what is now, Indias largestcinema chain.

In 2005, Reliance Anil Dhirubhai Ambani Group became a majority promoter inReliance MediaWorks. The financial resources and management expertise acted asa catalyst in synergizing various interrelated businesses, catapulting RelianceMediaWorks into becoming Indias biggest success story in the film andentertainment industry.

On 5th October 2009, Reliance MediaWorks Ltd. has informed stock Exchanges thatpursuant to approval from ROC, Maharashtra, the companys name has changed

from Adlabs Films Ltd. To Reliance MediaWorks Ltd.


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Reliance MediaWorks Ltd. Mode of Business

BIG Cinemas

BIG Synergy

Film and Media Services

Motion Picture Processing

Digital Intermediate Services

Reliance MediaWorks Digital Cinema Services

Cameras and Equipment Rentals Services

Studio/Shooting Floors

Reliance MediaWorks BPO

Lowry Digital


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Reliance MediaWorks Ltd. Growth

Increase from 31 screens in April 2006 to 500 screens in Nov 2009, 100% CAGR inscale of its operations.

Presence across 115 cities in India, USA, Malaysia & Netherlands.

BIG Cinemas will cater to 35 million consumers worldwide.

In brief over three years BIG Cinemas has grown a dominance presence in Indianmarket securing 240 screens across 75 cities, similarly has established a strong

international network of over 260 screens across 50 cities . It has hit its 500 screenmilestone with the opening of its newest multiplex at Kedah, Malaysia.

BIG Cinemas has also developed a brand new premium cinemas across the globeincluding BIG Cinemas-Golf Glen which is a five screen multiplex in Chicago witha premium bar & lounge.

The company is proposing to scale up BIG Cinemas network with plans to add afurther 100 screens over the next year.

BIG Cinemas has also successfully created a pan-US footprint and the circuitaccounts for 30% of Hindi box office collection & over 75% of Tamil & Telegu forthe US. Similarly in India contributes between 10% to 14% of box officecollections.

BIG Cinemas has also been awarded the Entertainment Retailer of the Year honorat the India Retail forum in 2009 and also been awarded International Exhibitor of

the Year 2008 by CineAsia 2008 at Macau.


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7th January 2009, recently Reliance ADA group has expanded its

international presence with opening of a dedicated film and media services

facility in London, UK that will offer front-end, processing, restoration, 2D

to 3D conversion and post production services to Broadcasters & studios. It has acquired the assets of ILAB UK Ltd., one of only two film

processing operating in London.

Reliance MediaWorks UK has also already secured image processing and

restoration work for two high profile projects. Lowry Digital, Hollywoods

leading film restoration expert has handled projects for leading studios likeWalt Disney, Paramount Pictures etc. & entertainment leaders like George

Lucas, Steven Spielberg etc. Also recently Lowry Digital has handled the

restoration of footage sent back to earth from Apollo 11, as part of 40 th

anniversary celebrations of the mission for NASA.

Also to further enhance the synergy between the services offered across

three continents, the company has established an optical fibre network,

through Reliance Globalcoms Ethernet Private Lines. This network has

been used for close to one year for distributing digital cinema releases of

Indian Films from Mumbai to U.S.


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Particulars (BIG Cinemas) YEAR (AUDITED) PERIOD 01.04.08 to 31.03.09 (In Lacs)

Income



Total48,526.72

Expenditure 51,763.76

Profit Before Other Income &

Interest/(Loss) (3,237.04)

Other Income 6,555.99

PBIT 3,318.95

Interest 6,274.76

PBT/(Loss) (2,955.81)

Taxes 16.71

PAT/(Loss) (2,972.52)

Nos Of Shares 46,126,200.00

EPS (6.44)


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Cinemax India Ltd. Introduction

The Company was incorporated on May 22, 2002 under the Companies Act as Cineline Entertainment

(India) Private Limited to primarily carry on the business of building, owning, and operating Multiplexes,

Theatres and entertainment centres.

The name of the Company was changed to Cinemax Cinemas (India) Private Limited on December 23,

2005. Was converted to a public limited company by a resolution of the members passed at the AGM held

on June 12, 2006. The fresh certificate of incorporation consequent to the change of name of ourCompany was issued by the RoC on July 27, 2006.

It is a emerging family entertainment centre focused primarily on Exhibition and Gaming and food court

business with limited interests in mall development.

Cinemax India Ltd. Mode of Business

Exhibition

Gaming

Food Court

Production & Distribution

Mall Development


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Cinemax India Ltd. Growth

Launching of Four Screens Multiplex at Cinemax- Savin Plaza Silliguri, Darjeeling

Launching of Three Screens Multiplex at South X Mall- Kanpur, Uttar Pradesh.

Launching two additional screens at Cinemax-R Mall Odeon situated near Vallabh

Baug Lane, Ghatkoper.

With the above addition, the company will have 90 screens with 24539 seats.

Future plans is add 40 new screens in 2009-10.


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Cinemax


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Cinemax


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Cinemax YEAR (AUDITED)

01.04.08 to 31.03.09 (In Crs.)

Income

Operating Income 105.90


115.54

Expenditure (90.04)

PBIDT 25.50Interest (5.81)

PBDT 19.69

Depreciation (11.51)

PBT 8.18

TAX (1.77)

PAT 6.41

Nos Of Shares 28.00

EPS 2.29

PE 33.19


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Quarterly Trends (September 2009) In Crores

Particulars Inox Leisure Reliance Media Cinemax India

Sales 70.68 111.12 32.03

PAT 5.30 -7.00 0.79

Equity 61.48 23.06 28.00

EPS 0.86 -1.52 0.28


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`

STOCKTRADING PRICEASON 15.01.2010

Market Leader:- INOX Leisure Limited -LTP-82.30

BSE NSELast Trade

82.3 82.4

-0.70 (-0.84%) -0.20 (-0.24%)Previous Close 83 82.6

Open 84 83.5

High 86.45 86

Low 81.75 81.65

Vol. (No. Shrs) 243,619 456,138

1 Yr % Return 149.77 151.99

MCap (Rs. Cr.) 513.77 511.29

52 Wk High 88.4 88.45

52 Wk Low 18.95 20.15


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Follower:- Reliance MediaWorks Limited LTP-281.50 Great Potential to

grow & will provide better returns somewhere after 2 yrs.

BSE NSE

Last Trade 281.5 281.3

Change/% 0.55 (0.20%) 0.25 (0.09%)

Previous Close 280.95 281.05

Open 281 282

High 288.4 288.2

Low 280.6 280.25

Vol. (No. Shrs) 218944 592697

1 Yr % Return 63.57 63.36

MCap (Rs. Cr.) 1295.74 1296.2

52 Wk High 463.5 463.8


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Potentially Growing Co.:- Cinemax India Limited LTP-76.00

BSE NSELast Trade

76 76

-0.50 (-0.65%) -0.80 (-1.04%)Previous Close 76.5 76.8

Open 77.7 77.45

High 77.7 78.4

Low 75.55 73

Vol. (No. Shares) 38,366 63,350

1 Yr % Return 102.94 104.58

MCap (Rs. Cr.) 214.2 215.04

52 Wk High 79.8 80

52 Wk Low 24.3 25


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Particulars Inox(In Crores) Reliance(In Crores) Cinemax(In Crores)Sources Of Funds Mar '09 Mar '09 Mar '09

Total Share Capital 61.47 23.06 28.17

Equity Share Capital 61.47 23.06 28.00

Share Application Money 1.03 - -

Preference Share Capital - - 0.17

Reserves 222.15 519.35 110.92Revaluation Reserves - - -Networth 284.65 542.41 139.09Secured Loans 28.87 500.37 69.96

Unsecured Loans 16.04 714.36 -

Total Debt 44.91 1,214.73 69.96Total Liabilities 329.56 1,757.14 209.05

Application OfFundsGross Block 322.62 1,052.90 208.80

Less: Accum. Depreciation 41.59 384.93 28.77

Net Block 281.03 667.97 180.03Capital Work in Progress 31.11 186.40 27.63

Investments 0.55 23.35 1.37Inventories 1.63 5.18 0.35

Sundry Debtors 6.46 243.94 6.30

Cash and Bank Balance 1.81 11.99 1.81

Total Current Assets 9.90 261.11 8.46

Loans and Advances 51.47 747.85 52.04

Fixed Deposits 0.51 28.69 1.39

Total CA, Loans & Advances 61.88 1,037.65 61.89

Deffered Credit - - -Current Liabilities 42.09 123.66 52.25

Provisions 2.90 34.57 9.61

Total CL & Provisions 44.99 158.23 61.86Net Current Assets 16.89 879.42 0.03Miscellaneous Expenses - - -

Total Assets 329.56 1,757.14 209.05


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Ratios

Particulars Inox (%) Reliance (%) Cinemax

Net Profit Margin % 6.14 -5.71 5.1

Return on Cap Employed 7.17 0.31 4.64

Current Ratio 1.01 1.19 0.71

Quick Ratio 1.31 6.41 0.93

Debt Equity Ratio 0.16 2.24 0.5


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Conclusion:-

The Indian Media and Entertainment (M&E) industry has been one of the fastestgrowing sectors in the country in recent times. The higher propensity fordiscretionary spending amongst young Indians also propelled more money into

leisure & entertainment activities, giving a steady impetus to the M&E industry.However, in recent times the market environment has become increasinglychallenging for the sector on the back of the economic slowdown and the qualityof content.

As per the FICCI-KPMG Media & Entertainment Industry Report, the film industryrecorded a 13.4% growth in 2008 to reach Rs. 10,990 crores, a marginal drop fromthe 14% it recorded in 2007

Adoption of digital technology: The film exhibition industry is in the initial stagesof conversion from film-based to digital projection technology. Virtually all filmentertainment content today can be exhibited digitally. Digital projection results ina premium visual experience for patrons as there is no degradation of image overthe life of a film.

Increasingly, a number of mall developers are considering Movies/Theaters as the

key elements attracting footfalls to the malls. This is being reflected in theattractive rental rates offered to such outlets, in comparison to other categories ofoutlets in malls.

As a result, Multiplexes are fast emerging as one of the key anchor tenants formost organized retail outlets and the preferred entertainment destinations inIndia.


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Publishing Sector

Market Leader:- HT MEDIA LTD.

Follower:- NAVNEET PUBLICATIONS INDIA LTD.

Potentially Growing Co.:- INFOMEDIA 18 LTD.


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HT MEDIA - Introduction

TheHindustan Times was the brainchild of the Akalis.

1924: beginnings ofHindustan Times with Mahatma Gandhi, the Father ofthe Nation inaugurating the newspaper.

1927:reborn asHindustan Times Ltd., a limited liability company.

1937: Devdas Gandhi was appointed the Managing Editor .

1942: refused to accept the British imposition of censorship on allnewspapers.

2003 :The media business of was de-merged and incorporated underHT

Media Ltd.

2004 :HT Media Ltdwas listed as a public company.

2007:Mint, the business paper in partnership with the Wall Street Journalwas launched in Delhi and Mumbai.


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HTMEDIA - Growth

With the combined strength of Hindustan Times and Mint, HT Media is oneof the leading players in the English Print market.

Hindi newspaper Hindustan ranks as the third largest daily in the country.

Firefly e-ventures Ltd, a 100% HT Media subsidiary focuses on building

businesses in the Internet media space.

Fever 104 FM, owned by HT Media Limited, was formed in technical

collaboration with the Virgin group .

They are performing financially strong due to sound financial model.

Started in 2008 in a joint venture with Hubert Burda Media only high end

pre-print capability in India. The pre press India, first partnership of a

major media company in India

Shine: The job market portal.


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HTMEDIA Mode of Business

HTML has a strong portfolio of businesses that are highly successful and few new

ventures that are in the growth phase

Hindustan Times English daily

Hindustan Hindi daily Mint Business paper

Fever 104 - Radio

Digital Portfolio of websites & mobile marketing

HT Burda Media Ltd entry in high-end publishing space


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Income YEAR (AUDITED) PERIOD 01.04.08 to 31.03.09 (In Crs)



1,323.26

Expenditure (1,127.56)

PBDIT 195.80

Interest (31.69)

PBDT 164.11


PBT 109.10

Extra Ordinary Items 5.42

Taxes (29.28)

PAT 85.24

Shares In Issue (Lakhs) 2,342.52

EPS 3.64

PE 44.23

Profit & Loss A/c. HT Media


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Navneet Publications India ltd.

1959: Founded by the Gala Family.

1987: NAVNEET installed ultramodern printing press at Dantali, District

Gandhinagar, Gujarat.

1991:sophisticated printing and binding machineries had been imported to

complete the modernisation

In 1993, Navneet started the exports of Stationery products .

In 1993, Navneet became amongst India 's first Branded Paper Stationerymanufacturer. And within no time Navneet became India 's largest Paper

Stationery company.

In 2006, taking the success of the Paper Stationery products further,

Navneet launched it first range of non-paper stationery FfUuNn Pencils.


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Growth:

For over 4 decades, Navneet has been consistently producing high quality

and dependable Indian school curriculum books .

The company enjoys leading position in premiere stationery markets in India,

the Middle East, parts of Africa, U.S.A. and Europe.

Curriculum books cater to the K-12 segment students of Maharashtra,

Gujarat, CBSE and ICSE Boards.

Navneet has ventured in distance learning and computer based

teaching/learning with eSense vertical.

FundoO is the Creative Business Unit of Navneet to market its exclusive rangeof innovative learning products in India catering the segment of kids between

3 to 10 years.

The company's products are sold under the 'Navneet', 'Vikas', 'Gala',

FfUuNn', Boss' and Navneet Nxt' brand name


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Navneet Publication- Mode of Business

Books:

Curriculum books for K-12 segments of students.

Colouring , Activity , Story, interactive Books

Mehendi, Health, rangoli, cookery books

Stationery:

Tight Bind Notebooks, Long books, Drawing Books.

Paper stationery, pencils, erasers, Sharpeners.

eSense:

Distance Learning and computer based learning . Fundo0:

Creative Business Unit for kids of 3 to 10 years.


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Particulars

YEAR (AUDITED) PERIOD 01.04.08 to 31.03.09 Amt. (In

Crs)



539.08

Expenditure (432.68)

PBDIT 106.40

Interest (7.73)

PBDT 98.67


Other Written Off -

PBT 86.96

Extra Ordinary Items 0.56

Taxes (28.56)

PAT 58.96

Shares In Issue (Lakhs) 952.86

EPS 6.19

PE 8.30


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Infomedia 18

Infomedia 18 Ltd Formerly known as Infomedia India Limited. Infomedia is one of India's leading media companies with businesses

ranging from Business Directories to Magazine Publishing, Printing

Services and Publishing Outsourcing.

They are the undisputed market leaders in Yellow Pages and Special

Interest Publishing, and are one of the most respected contract printers in

the country

Infomedia's publishing activities are focused at two broad categories -

Special Interest Consumer Publishing and Business-to-business (B2B) /

Trade publishing. At the moment, Infomedia has stamped its authority,

publishing 20 titles spread across 8 Consumer magazines and 12 Trade

magazines


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Infomedia 18 Limited is a 1SO 9001:2000 certified for "Provision of

Printing Services". We are engaged in processing and printing to binding

and dispatch.

Infomedia 18 Ltd has acquired 100% stake in UK based Keyword Group

Limited, a leading publishing BPO company

Publishing Segment includes publishing of business directories, children's

books and special interest publications and the "Yellow Line" telephoneinformation service.

Other segment includes direct marketing and also typesetting, artwork

and production services to various publishers.


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INFOMEDIA 18- Mode of Business

Directories:

Infomedia Yellow Pages.

Infomedia Office Guide

Infomedia Home Guide

Infomedia Industries Directory.

Engineering Expo:Indias Premier Industrial Trade Fair.

Printing Solution:

Designing & Printing of Annual Reports, magazines, Product Brochures,

Diaries and Calendars.


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Infomedia

Income YEAR (AUDITED) PERIOD 01.04.08 to 31.03.09 (In Crs)


Other Operational Income (12.51)

112.63

Expenditure 178.15

PBDIT (65.52)

Interest (10.99)PBDT (76.51)

Depreciation (5.71)

Other Written Off (0.08)

PBT (82.30)

Extra Ordinary Items (0.01)

Taxes (2.36)

PAT (84.67)

Shares In Issue (Lakhs) 198.85

EPS (42.47)


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Particulars HT Media (in crs) Navneet (in crs) Infomedia 18 (in crs)

Sources Of Funds Mar '09 Mar '09 Mar '09

otal Share Capital 47.00 19.06 19.89

Equity Share Capital 47.00 19.06 19.89

Share Application Money 14.22

Preference Share Capital

Reserves 854.61 241.88 -42.58

Revaluation Reserves

Networth 901.61 260.94 (8.47)

Secured Loans 369.87 15.09 60.17

Unsecured Loans 50 50.02

otal Debt 369.87 65.09 110.19

otal Liabilities 1,271.48 326.03 101.72

pplication OfFunds

Gross Block 793.46 185.06 114.78

Less: Accum. Depreciation 234.05 96.93 91.24Net Block 559.41 88.13 23.54

Capital Work in Progress 177.94 0.72 0.06

Investments 405.59 14.02 83.96

Inventories 174.49 190.72 8.21

Sundry Debtors 235.00 61.3 31.21

Cash and Bank Balance 54.91 5.64 3.88

otal Current Assets 464.40 257.66 43.30

Loans and Advances 242.09 31.91 37.66

Fixed Deposits 5.34 0.66 0.28

otal CA, Loans & Advances 711.83 290.23 81.24

Deffered Credit - - -

Current Liabilities 567.15 35.89 64.79

Provisions 16.15 31.18 22.48

otal CL & Provisions 583.30 67.07 87.27

Net Current Assets 128.53 223.16 (6.03)

Miscellaneous Expenses - - 0.18

otal Assets 1,271.47 326.03 101.71


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Ratios

Ratio HT Media Infomedia Navneet

Net Profit Margin(%) 6.30 (42.28) 11.65

Return On Capital

Employed(%) 13.36 (46.34) 29.03

Current Ratio 0.72 0.38 4.33

Quick Ratio 0.89 0.84 1.46

Debt Equity Ratio 0.41 0.25

Return on Assets 4.60 (49.78) 14.99


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Conclusion

Growing population & literacy will continue to foster print in India

Consuming class is expected to grow manifold in next few years asthe fundamentals of Indian economy remains strong

Advertising is expected to increase across mediums with thegrowth in consumption; thereby a strong outlook for the overallMedia industry.

As expected, both the states (Maharashtra & Gujarat) have

witnessed syllabus change of major standards over last few yearsresulting into growth in publication business.

The expected growth is around 25% in current year.


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THANK YOU

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