PROJECT REPORT

“FINANCIAL REPORT OF BALAJI TELEFILMS PVT LTD”

SUBMITTED BY

ANIKET KUMAR

MBA SEM 1
2018-19

SUBMITED TO
SUBEHENDU PRADHAN

AJEENKYA D Y PATIL UNIVERSITY

 ABOUT THE COMPANY
Balaji Telefilms Ltd. is one of the largest content production houses across India, South
Asia,South East Asia and the Middle East delivering Hindi and regional content. Promoted
by Mr. Jeetendra Kapoor, Mrs. Shobha Kapoor, Ms. Ekta Kapoor and Mr. Tusshar
Kapoor, we have constantly built relationships across the entertainment industry, while
identifying new avenues and markets.
Our dominance in TV soaps dates back to the early 1990s. Under the astute leadership
vision of our promoter Ekta Kapoor, a handful of serials based on social themes gave way
to high voltage family dramas. Indian TV was never to be the same again. So successful
was this strategy that Ekta Kapoor became a household name. While 'Mano Ya Na Mano'
a fiction thriller which was aired on Zee TV in the year 1995 was our first show, the first
big hit that we produced was a comedy show "Hum Paanch" about a couple with five
daughters. It ran for 5 years and turned out to be a huge success. After that, we produced
numerous hit shows such as "Itihaas", "Koshish... EkAasha" , "Koi AaneKoHai" , "Kkusum
... EkAamLadki Ki Kahani", ‘Kaaun’, ‘Kanyadaan’, ‘GharEkMandir’, ‘Bandhan’etc. catering
to the Hindi speaking audience and 'PavitraBandham', ‘KulaaVillaakku’, 'Pasamalargal',
Anubandham', 'Itihaasaa' etc. in regional languages.
In 2000 the launch of the three shows on Star Plus, namely, "Kyunkii...
SaasBhiKabhiBahuThi", "KahaaniGharGharKii" and "KasautiiZindagii Kay" catapulted us
into the living rooms of India and Indians globally. Such was the popularity of our shows
in 2002 that 22 out of top 25 serials were produced by us, and we are proud that even
today our shows consistently continue to be ranked number 1 shows on the general
entertainment channels.
Even as we made rapid strides in the Hindi market we strategically expanded our offering
to the growing demand in regional content. Our first regional program, ‘Kudumbam’ was
produced in 1998 by us and aired on Sun TV. This laid the foundation for Balaji in
becoming a prolific content producer down South in languages such as Telugu, Kannada,
Malyalam and Tamil. Some of the hit shows produced by us in south were Kudumbam
,KulaaVillaakku , Kasthuree in Tamil , Kavyanjali in Malayalam and Pavithrabandham,
Kalisundhamra in Telugu . Additionally, we also produced shows internationally for ARY
in Dubai (Khwaish) and Maharaja TV in Sri Lanka.
Today having produced over 17,000 hours of television content, we are one of the leading
providers of television entertainment in India. At present we are producing television
content for all major entertainment channels in the country .
Our success in the television market is attributed to understanding the pulse of the
masses, anticipating viewer and channel preferences and creating programs which are
in tune with the changing times. Our state of the art infrastructure includes production
sets, resources, manpower and editing machines and this allows us to continuously
produce high quality shows.
We endeavor to maintain a healthy pipeline for new TV shows and strive to consistently
deliver top-quality content catering to a diversified audience across genres in India.
 VISION AND VALUES

Vison
To consistently provide delightful and innovative entertainment experiences by engaging
audiences and nurturing talent

Values
 PRODUCTS AND SERVICES
Balaji Telefilms Limited

Balaji Telefilms Limited (Balaji Telefilms) has emerged as India’s leading integrated media
conglomerate with market leadership in the television content industry, among other
entertainment-led businesses. We have demonstrated success in both films and television.
Pioneering widely diverse genres of content, our various brands reflect our different businesses.
Today, our production house – Balaji Telefilms is synonymous with ground-breaking television
content

Balaji Motion Pictures Limited

Balaji Motion Pictures Limited (Balaji Motion) is a producer of pioneering cinematic content with
the topmost industry talent; while ALT Entertainment is our cutting - edge, youth oriented brand.

ALT Digital Media Entertainment Limited

ALT Digital Media Entertainment Limited (ALTBalaji) is our strategic foray into the Digital B2C
entertainment category. We seek to build a consumer facing brand that offers original, premium
and exclusive content for a global digital audience.

ALT Entertainment

ALT Entertainment envisaged as a cutting-edge, youth oriented brand, the Alt Entertainment
brand will be used on all content catering to a younger, more urban demographic, across the
television, movie, mobile and internet space.

Chhayabani Balaji Entertainment Private Limited

Chhayabani Balaji Entertainment Private Limited (Chhayabani Balaji) is a creator and producer
of Bengali content.
Marinating Films Private Limited

Marinating Films Private Limited (Marinating Films) is a creator of intellectual property (IP) rights
and producer of reality shows and events.

Brand EK

Brand EK is the signature label comprising of Indian ethnic wear and exquisite jewellery which is
available in the online space and through TV shopping networks.

Hoonur

Hoonur is a platform for media professionals and entertainment consumers used in both online
and mobile space.
 CASHFLOW
Particulars Mar'18 Mar'17 Mar'16 Mar'15 Mar'14

Profit Before Tax 46.72 2.26 49.61 15.06 16.02

Net Cash Flow from Operating Activity 52.04 14.68 13.45 -1.48 -.31

Net Cash Used in Investing Activity -437.89 -18.35 -150.41 12.25 -5.11

Net Cash Used in Financing Activity 391.87 .00 134.40 -4.73 -3.05

Net Inc/Dec In Cash and Cash Equivalent 6.03 -3.68 -2.55 6.04 -8.47

Cash and Cash Equivalent - Beginning of the Year .70 4.38 6.40 .36 8.83

Cash and Cash Equivalent - End of the Year 6.74 .70 3.85 6.40 .36
Rs (in Crores)
 Profit & Loss - Balaji Telefilms Ltd.

Rs (in Crores)

Mar'18 Mar'17 Mar'16 Mar'15 Mar'14

12Months 12Months 12Months 12Months 12Months

INCOME:

Sales Turnover 416.59 408.46 256.85 209.69 131.54

Excise Duty .00 .00 .00 .00 .00

NET SALES 416.59 408.46 256.85 209.69 131.54

Other Income 0 0 0 0 0

TOTAL INCOME 433.18 420.21 280.95 219.90 149.43

EXPENDITURE:

Manufacturing Expenses 279.47 300.84 190.88 167.73 102.17

Material Consumed 23.50 24.70 -6.50 .00 .00

Personal Expenses 15.96 18.52 12.71 9.06 7.22

Selling Expenses 13.99 33.81 .00 .00 .00

Administrative Expenses 30.60 27.82 25.52 20.16 17.39

Expenses Capitalised .00 .00 .00 .00 .00

Provisions Made .00 .00 .00 .00 .00

TOTAL EXPENDITURE 363.51 405.68 222.62 196.95 126.77

Operating Profit 53.08 2.78 34.23 12.74 4.77

EBITDA 69.67 14.53 58.33 22.95 22.66

Depreciation 13.90 12.27 8.72 7.61 5.45

Other Write-offs .00 .00 .00 .00 .00

EBIT 55.77 2.26 49.61 15.34 17.20

Interest .00 .00 .00 .28 1.19

EBT 55.77 2.26 49.61 15.06 16.02

Taxes 30.42 -27.12 12.53 2.79 5.99

Profit and Loss for the Year 25.35 29.38 37.08 12.27 10.02

Non Recurring Items -9.09 -.08 -.04 .00 .00

Other Non Cash Adjustments .00 .00 .00 .00 .00

Other Adjustments .04 .08 .04 .00 .00

REPORTED PAT 16.30 29.38 37.08 12.27 10.02

KEY ITEMS

Preference Dividend .00 .00 .00 .00 .00

Equity Dividend 3.22 .00 11.97 3.12 2.17

Equity Dividend (%) 15.92 .00 78.79 23.89 16.60

Shares in Issue (Lakhs) 1011.30 759.30 759.30 652.10 652.10

EPS - Annualised (Rs) 1.61 3.87 4.88 1.88 1.54

Rs (in Crores)
 BalanceSheet - Balaji Telefilms Ltd.

Rs (in Crores)

Particulars Mar'18 Mar'17 Mar'16 Mar'15 Mar'14

Liabilities 12 Months 12 Months 12 Months 12 Months 12 Months

Share Capital 20.23 15.19 15.19 13.04 13.04

Reserves & Surplus 963.08 559.98 608.06 416.95 411.16

Net Worth 983.30 575.17 623.25 429.99 424.20

Secured Loan .00 .00 .00 .00 .00

Unsecured Loan .00 .00 .00 .00 .00

TOTAL LIABILITIES 983.30 575.17 623.25 429.99 424.20

Assets

Gross Block 135.37 127.93 130.65 116.05 103.60

(-) Acc. Depreciation 105.14 94.44 101.79 93.09 82.85

Net Block 30.23 33.49 28.86 22.95 20.75

Capital Work in Progress 2.27 3.40 .00 .22 .88

Investments 687.77 250.12 272.75 211.68 226.74

Inventories 68.56 92.05 11.59 5.09 6.52

Sundry Debtors 82.98 99.71 76.17 59.02 31.52

Cash and Bank 10.40 10.54 3.98 6.46 .85

Loans and Advances 160.46 202.85 287.81 164.49 165.16

Total Current Assets 322.40 405.15 379.55 235.06 204.05

Current Liabilities 59.36 117.00 57.91 32.00 24.90

Provisions .00 .00 .00 7.92 3.32

Total Current Liabilities 59.36 117.00 57.91 39.92 28.22

NET CURRENT ASSETS 263.04 288.15 321.64 195.14 175.83

Misc. Expenses .00 .00 .00 .00 .00

TOTAL ASSETS(A+B+C+D+E) 983.30 575.17 623.25 429.99 424.20

Rs (in Crores)
 Key Financial Ratios of Balaji Telefilms.

Mar
Mar '17 Mar '16 Mar '15 Mar '14
'18

Investment Valuation Ratios

Face Value 2.00 2.00 2.00 2.00 2.00
Dividend Per Share 0.40 -- 1.20 0.60 0.40
Operating Profit Per Share (Rs) 5.25 0.37 4.51 1.95 0.73
Net Operating Profit Per Share (Rs) 41.19 53.79 33.83 32.16 20.17
Free Reserves Per Share (Rs) -- -- -- -- --
Bonus in Equity Capital 32.13 42.80 42.80 49.83 49.83
Profitability Ratios
Operating Profit Margin(%) 12.74 0.68 13.32 6.07 3.62
Profit Before Interest And Tax Margin(%) 9.04 -2.25 9.08 2.33 -0.45
Gross Profit Margin(%) 9.40 -2.32 9.93 2.44 -0.52
Cash Profit Margin(%) 9.06 9.91 16.30 9.04 10.35
Adjusted Cash Margin(%) 9.06 9.91 16.30 9.04 10.35
Net Profit Margin(%) 3.91 7.19 14.43 5.85 7.61
Adjusted Net Profit Margin(%) 3.76 6.99 13.19 5.58 6.70
Return On Capital Employed(%) 5.67 0.39 7.96 3.56 4.05
Return On Net Worth(%) 1.65 5.10 5.94 2.85 2.36
Adjusted Return on Net Worth(%) 2.57 5.10 5.94 2.85 2.36
Return on Assets Excluding Revaluations 97.23 75.75 82.08 65.94 65.05
Return on Assets Including Revaluations 97.23 75.75 82.08 65.94 65.05
Return on Long Term Funds(%) 5.67 0.39 7.96 3.56 4.05
Liquidity And Solvency Ratios
Current Ratio 5.43 3.46 6.55 5.89 7.23
Quick Ratio 3.95 2.42 6.33 5.62 6.91
Debt Equity Ratio -- -- -- -- --
Long Term Debt Equity Ratio -- -- -- -- --
Debt Coverage Ratios
Interest Cover -- -- -- 54.92 14.47
Total Debt to Owners Fund -- -- -- -- --
Financial Charges Coverage Ratio -- -- -- 82.18 19.06
Financial Charges Coverage Ratio Post Tax -- -- -- 72.20 14.02
Management Efficiency Ratios
Inventory Turnover Ratio 6.08 4.44 22.16 41.21 20.17
Debtors Turnover Ratio 4.56 4.64 3.80 4.63 3.87
Investments Turnover Ratio 6.08 4.44 22.16 41.21 20.17
Fixed Assets Turnover Ratio 3.08 3.19 1.97 1.81 1.27
Total Assets Turnover Ratio 0.42 0.71 0.41 0.49 0.31
Asset Turnover Ratio 0.53 0.68 0.49 0.49 0.31

Average Raw Material Holding -- -- -- -- --

Average Finished Goods Held -- -- -- -- --
Number of Days In Working Capital 105.67 86.10 388.62 307.95 459.79
Profit & Loss Account Ratios
Material Cost Composition -- -- -- -- --
Imported Composition of Raw Materials Consumed -- -- -- -- --
Selling Distribution Cost Composition 3.35 8.27 -- -- --
Expenses as Composition of Total Sales 1.61 0.01 0.03 0.16 0.05
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 24.81 -- 37.27 31.88 26.02
Dividend Payout Ratio Cash Profit 13.39 -- 30.17 19.67 16.85
Earning Retention Ratio 84.05 100.00 62.73 68.12 73.98
Cash Earning Retention Ratio 89.70 100.00 69.83 80.33 83.15
Adjusted Cash Flow Times -- -- -- -- --
 CONCLUSION
Balaji's budgeting discipline is responsible for a strict control of costs. The budgeting
discipline has the following priorities. Each programme is appraised as a profit center and
costs are compared with the budgeted target across every episode, artiste, location, and
people expenses. Secondly, project life cycle management comprises of a holistic
perspective of shooting schedules, scene wise artiste requirements, ongoing shooting
progress and final product delivery before shooting commences. Further, Balaji has
invested in captive sets, wherein the company has in house sets, which helps in saving
the hiring cost, and enhances production quality.

Also, the company has reduced its dependence on vendor equipment by investing in
sophisticated lights; sound recording equipment resulting in substantial cost savings.
Balaji has two state of the art post production suites, which accelerates the conversion of
recorded material into episodes and enhances the flexibility to review the produced
content with the objective of revision and improvement. The company's serials accounted
for 79% of the aggregate TRP of the weekday prime time shows featuring in the top 100
Hindi cable and satellite shows.

Being the leader in the Hindi mass entertainment space, accounting for more than 40 of
the top 100 programmes, some of its popular serials have been on air for years now but
still dominate the TRP ratings. Balaji has also been very successful in regional
programming.