ABC vs RNI: Choose your credibility yardstick

The latest ABC for the year 2023 has come out. After this audit, which was taken as a whole year, from now onwards it will be again a bi-annual audit as per ABC.

Dinamalar, for 5 decades, has submitted itself for ABC audit for all its 10 editions, which helps us showcase our true strength in the market with real numbers. We also presume that it is only ethical to have it audited by an external body as this will help in the growth of the Print industry.  

Many leading publications, having dropped huge circulation copies post Covid, have preferred to stay out of ABC as a strategic move.  They influence the agency and clients based on perception and not on real numbers.  In editions where they are truly strong with numbers they go for ABC audit, or they submit themselves to RNI for certification.  Many of the leading publications both in the English and in the language space have moved to the RNI as it effortlessly gets them to show higher numbers.

If clients and agencies are aware of how RNI and ABC figures are compiled, then one will come to know how far the RNI figures deviate from reality, casting a cloud of doubt. One should also question publications why some of their editions choose to be in ABC and some in RNI.

Let me explain this in short and I hope those who read this are benefitted. 

Before ABC issues a certificate, a team from an empanelled audit firm appointed by ABC (audit firms get rotated) visits a publication at least for a minimum 30 days to verify every ledger, receipts, bills, invoice, and vouchers put up for expense or receipt in a newspaper office, whether it comes from advertisement, circulation or even from scrap sales to ensure that every money that comes in or goes out is genuinely accounted.

This is done for all their editions. Every credit note of any department is also verified and audited. This process is followed without any exemption strictly by the audit teams, as India's top 25 odd audit firms are empanelled with ABC.

The audit team makes a surprise visit to the printing center at midnight, visit few distribution points and physically open the packed paper bundles before it is taken by the agents. None of these are known or informed to the publication staffs.

In the case of RNI certification, only 13 required documents are submitted to the office by publications and certificate is issued based on the submission. You are all aware that in our country where  fake stamp papers, fake arrest warrants and even fake US dollars are printed., few publications faking a few documents are surely possible to show an increased number of copies. 

Publications, that want to fake circulation numbers, can raise a bill for sold copies and issue a credit note to those agents in its advertisement accounts which RNI will not come to know as they do not audit the advertisement books.

More over for RNI a mere purchase of newsprint invoice is enough. They do not verify the genuinity of that invoice or counter verify the GST paid from the GST department, or check the electricity bills of printing centre to measure the print run or check the vouchers paid for the transportation of news print, to ensure the volume of newsprint consumed. ABC follows these meticulously, checks all the contra accounts in different books of the publication.

Why do Publications opt for RNI?

• This is basically to show increased circulation numbers so that they get a higher rate from CBC. (DAVP) as RNI accepts both ABC and RNI certifications figures for rate calculation purposes.
• This gives an impression in the market that RNI figures are recognized by government of India as it is displayed in the RNI website, which is not true.
• CBC is also well aware of this, RNI does not have sufficient audit staff and with this minimal strength will not be able to audit and certify and hence ask for submission of needed documents and on verification just certifies. (Of course as per policy RNI claims, they send an audit team from Delhi)

There is one instance in Tamilnadu in the year 2022, wherein one multi-edition publication filed circulation numbers to RNI for the Newsprint consumed showing a certain number and in 6 months applied again to RNI for circulation certification and got a circulation increase of nearly 100%.  Both the figures are displayed on the RNI website which is astonishing.  Is this possible at all?

In contrast, ABC norms are more stringent and it is needed to maintain credibility in the industry.  For instance, it allows a trade discount cap of 45%, which encompasses all expenses.  Although, RNI has a similar trade commission cap, it is possible for publications to account expenses under different heads and discounts passed to distribution agents to the extent of 80%-90% for market domination and to kill competition.

It is highly unfortunate that the clients and agencies are unaware of this and do not raise a question to publications on why they had opted for RNI certification, or why they moved out of ABC.

In fact, it should be easier to question why certain editions alone are in ABC and some are not.

This comes to prove that they are not interested in the clients’ success.  Some Publication and agency need to make their profits.

It's prerogative of any publication to choose which certification they need, and no one has the right to comment on this, but these questions are raised for publications who are using the government facility. They spoil the industry's credibility by faking the numbers and increase the advertisement rates, which makes people feel Print media is expensive and makes clients move away from the print business.

It is time for all publications to come out clean on this count and prove that it is just not news that is carried is reliable but the entire business of the Print industry is based on integrity.