Due diligence report on yash raj film banner

CEO of YRF

Akshaye Widhani

Management of the yrf

(SWOT Analysis ) OF YASH RAJ FILMS PRIVATED LTD

In the year 2000, the Government of India officially recognized Bollywood as
an industry. This policy change ushered in the corporatization of Bollywood.
Set against this backdrop, the case describes how Aditya Chopra, the current
chairman and managing director of YRF, led the firm's evolution from a
boutique production company into a full-fledged studio. Students analyze the
firm's pursuit of fit among different activities and evaluate the challenges
involved in sustaining the fit, amidst ongoing developments in the industry

Bollywood Yrf encounters both internally and in macro environment that it

operates in. Strengths and Weaknesses are often restricted to company’s internal
- resources, skills and limitations.

Opportunities and Threats are factors that are analyzed seeable of the
prevalent economic process and other factors like legal & environmental,
technological, economic , political, and social, health & safety.

According to global executive survey done by Harvard Business Review &

Brightline Initiative – Only 20% of the strategic targets set by organizations are
realized. Rest 80% of the strategic targets aren't achieved thanks
to incomprehensive planning, limited resource allocation, and poor execution.

The successful organizations like Bollywood Yrf are the one who ready
to predict market trends better than others, provide resources to develop
products and services to leverage those trends, able to counter competitors’
threats, and meet customers’ arithmetic mean proposition.

Opportunity

Opportunities are macro environment factors and developments that Bollywood Yrf can
leverage either to consolidate existing market position or use them for further expansion.

- Growing Market Size and Evolving Preferences of Consumers – Over the last decade and
half the market size has grown at brisk pace. The influx of recent customers has also led to
evolution of consumer preferences and tastes

- Developments in AI – Bollywood Yrf can use developments in computer science to

higher predict consumer demand, cater to niche segments, and make better recommendation
engines.

- Increasing Standardization – Bollywood Yrf can leverage this trend to scale back the
quantity of offerings within the market and focus the marketing efforts on only the
foremost successful products.

- E-Commerce and Social Media Oriented Business Models – E-commerce business model
can help Bollywood Yrf to traffic congestion with local suppliers and logistics provider in
international market.

- Access to International Talent in Global Market – one in every of the challenges Bollywood
Yrf facing right away is proscribed access to high level talent market due to limited budget.
Expansion into international market can help Bollywood Yrf to tap into international talent
market. per Dharmendra Hiranandani, Rishabh Raj, Pranav Garg , it also can help in bringing
the talent into domestic market and expanding into new areas Competition, Competitive
strategy.

- Lucrative Opportunities in International Markets – Globalization has led to

opportunities within the international market. Bollywood Yrf is in prime position to tap on
those opportunities and grow the market share. consistent with Dharmendra Hiranandani,
Rishabh Raj, Pranav Garg , growth in international market also can help Bollywood Yrf to
diversify the danger because it are less enthusiastic about the domestic marketplace
for revenue.

Healthy financial risk profile with adequate liquidity

YRF’s financial risk profile remains healthy with adequate tangible net worth. Tangible net
worth stood at Rs. 492.43 Cr. as on March 31, 2021 (Provisional) and Rs. 477.03 Cr. as on
March 31, 2020. YRF has followed a conservative gearing policy with gearing in the range of
0.31 – 0.47 times for three years through FY2021. It also has healthy coverage indicators.
Interest coverage ratio (ICR) stood at 92.31 times in FY2021 (Provisional) and 119.59 times
in the previous year. The company’s operations are working capital intensive as film
production requires long gestation period. YRF had previously been relying primarily on
internal accruals for its working capital funding. However on account of the delay in release
of its already produced films in 2020 its reliance external working capital borrowings has
increased. The total debt which consists entirely of working capital debt stood at Rs. 231.58
Cr. as on March 31, 2021 (Provisional) and Rs. 91.12 Cr. in the previous year. However,
YRF has adequate liquidity cushion in the form of cash equivalents of 99.79 Cr. as on March
31, 2021 (Provisional) and liquid deposits of Rs. 5.75 Cr. as on March 31, 2021. As the film
industry gradually returns to normalcy with opening of theatres across the country albeit on a
limited basis a gradual improvement is expected in its operating performance which will
further boost its financial risk profile. Acuité expects YRF’s financial risk profile to remain
healthy over the medium term on account of expected improvement in the operating
performance and adequate liquidity.
Liquidity Position: Adequate

YRF has no long run repayment obligations. It primarily has short term bank limits to fund
its assets
requirement which has increased significantly in FY2021 because of the COVID -19
pandemic. However, YRF also has adequate liquid investment which it's relied on to support
its funding requirement. Its cash and bank
balance declined to Rs. 99.79 Cr. as on March 31, 2021 (Provisional) against Rs. 106.85 Cr.
as on March 31, 2020. Its liquid investments have also depleted to Rs. 5.75 Cr. as on March
31, 2021 (Provisional) against Rs.
78.12 Cr. within the previous year. the corporate has four films slated for release till March
31, 2022. Although YRF currently has an adequate liquidity profile any more delay in release
of films will have an adverse impact
on its liquidity profile and can remain a key monitorable. The expected advances before the
discharge of the films from all licensing partners is additionally expected to own a positive
impact on YRF’s liquidity profile.
Rating Sensitivities

 Release of films as scheduled without further delays and improvement in operating

performance Material Covenants None Outlook: Stable
Acuité believes that YRF will maintain a ‘Stable’ outlook over medium term on account of
its experienced management and healthy financial risk profile. The outlook could also
be revised to ‘Positive’ just in case of upper than expected obtain in revenue. Conversely, the
outlook could also be revised to ‘Negative’ just in case of further delays
in release of films resulting in below expected devour in revenues and deterioration of
liquidity profile.
_
Share holder of the company
Company's authorized capital stands at Rs 1625.0 lakhs and has 85.60923% paid-up capital
which is Rs 1391.15 lakhs. Yash RAJ Films Private Limited last annual general meet (AGM)
happened on 30 Sep, 2017. The company last updated its financials on 31 Mar, 2017 as per
Ministry of Corporate Affairs (MCA).

Yash RAJ Films Private Limited is in the business from last 49 years and currently, company
operations are active. Current board members & directors are
SANJEEV MADANMOHAN KOHLI, PAMELA MOHINDER CHOPRA, RANI RAM
MUKERJI, UDAY YASHRAJ CHOPRA and ADITYA YASHRAJ CHOPRA .

Company is registered in Mumbai (Maharashtra) Registrar Office. Yash RAJ Films Private
Limited registered address is 5, Shah Industrial Estate, Off Veera Desai Road, Andheri
(West), Mumbai Mumbai City MH 400053 IN.
Financial asset and liability
Here is a summary of financial information of YASH RAJ FILMS PRIVATE LIMITED for the
financial year ending on 31 March, 2021.

 Revenue / turnover of YASH RAJ FILMS PRIVATE LIMITED is INR 100 cr - 500 cr
 Net worth of the company has increased by 3.85 %
 EBITDA of the company has decreased by -68.65 %
 Total assets of the company has increased by 26.96 %
 Liabilities of the company has increased by 75.34 %

Charges on assets

CHARGES ON ASSETS - YRF STUDIOS PRIVATE LIMITED

CH DATE M A CH
AR OF OD M AR
GE CREA IFI O GE
ID TION ED U HO
/ LDE
 MOD
IFICA NT R
TION

KO
TA
K
MA
10
09 10 HIN
04
Marc 0. DR
61 NO
h, 00 A
45
2021 cr BA
7
NK
LIM
ITE
D

YES
26
10 18 BA
Nove
38 YE 0. NK
mber
85 S 00 LIM
,
75 cr ITE
2019
D

YES
10 21 10 BA
33 Febr YE .0 NK
52 uary, S 0 LIM
25 2014 cr ITE
D

YES
10 18 30 BA
17 Augu .0 NK
NO
36 st, 0 LIM
76 2009 cr ITE
D

10 26 NO 20 YES
15 Marc .0 BA
42 h, 0 NK
64 2009 cr LIM
ITE
 D

5 BIGGEST CHARGES

Also connected companies

Connection between companies
Bank assets report

Yash Raj Films Net Worth:

In January 2019, YRF reached a $9.1 billion (Rs 67000 Crores )valuation by SEBI, thereby making it
the largest film production company in the history of Indian Cinema; Disney exited all Indian film
operations and was liquidated the same year.
yash raj films
Apart from emerging as an equitable brand, his company earned the status of a movie mogul through
distribution networks spread across the globe.
Having denied him admission into the NSD due to his severe stammering as a young applicant, the
Film Division of India eventually honored him with the National Award for his achievements in 1995,
2005, 2007 and 2015.
The Government of India appealed both Chopra and Mani Ratnam to focus on content created locally
under its Make in India and Atmanirbhar Bharat initiatives. In June 2018, he was awarded
membership into The Academy by the Producers Guild of America.
Yash raj exhibition pvt ltd
YASH RAJ REGISTRATION UNDER MCA
Few case law of yash raj films private ltd

1- YASH RAJ FILMS (USA), INC. v. SIDHU

CONCLUSION AND ORDERS

Pursuant to the foregoing discussion, the court hereby ORDERS that Plaintiff's motion
for judgment is GRANTED on Plaintiff's first and fourth claims for relief.
Because judgment is granted on Plaintiff's first and fourth claims for relief, Defendant is
hereby PERMANENTLY ENJOINED from:

1. duplicating, manufacturing, or copying any copyrighted flick (or any portion thereof) of
which Plaintiff is that the copyright registrant, assignee or exclusive licensee, without
Plaintiff's consent, including Plaintiff's Copyrighted Works; 2. renting, selling, lending,
exchanging, trading, displaying or distributing any unauthorized video cassette or DVD or the
other unauthorized copy of any copyrighted film (or any portion thereof) of which Plaintiff is
that the copyright registrant, assignee or exclusive licensee, including Plaintiff's Copyrighted
Works; 3. offering to try to to any of the acts enjoined in subparagraphs (1) and (2) above; 4.
in any manner infringing or contributing to or participating within the infringement by others
of any of the copyrights or exclusive rights under copyright in said Plaintiff's Copyrighted
Works (or any portion thereof), and from acting as one with, aiding or abetting others to
infringe any of said copyrights or exclusive rights under copyright in any way; and 5. using
the titles of motion pictures within which Plaintiff owns exclusive rights under copyright, or
using the Plaintiff's Registered Marks, in reference to unauthorized video cassetts or DVDs or
in any manner which isn't authorized by Plaintiff or is probably going to cause confusion,
mistake or deception in reference to the distribution, advertising, promotion and sale of video
cassettes, CDs or DVDs of motion pictures and audio sound recordings within which Plaintiff
owns the copyright or exclusive rights under copyright and form attempting, causing or
assisting any of the described actions to occur. FURTHER, the court, having found that
Defendant did infringe four of Plaintiff's copyrighted works and did infringe four of
Plaintiff's registered trademarks hereby ORDERS that Defendant shall pay statutory damages
to Plaintiff within the sum of $80,000.00. The court further ORDERS that Defendant shall
pay Plaintiff's attorneys' fees and costs within the amount of $32,595.86.
IT IS SO ORDERED.

2- Onyx Musicabsolute.com Pvt.Ltd. & Others v/s Yash Raj

Films Pvt.Ltd. & Other ( Bombay HC)

SUPEREME COURT PUT A STAY

The Supreme Court has issued a be a fine of Rs 10,000, plus litigation cost, imposed on Yash
Raj Films by the National Consumer Disputes Redressal Commission (NCDRC). The SC has
also issued a notice within the case. The NCDRC had imposed a fine on YRF for "unfair
trade practice" by releasing a preferred song Jabra Fan within the movie promos
which wasn't included within the film itself. The song is from Shah Rukh Khan's 2016 film
Fan.

A film-goer had approached the state consumer forum claiming that she and her children had
gone to observe the film only because of the recognition of the song, and therefore the non-
inclusion of the song had adversely affected her children. The NCDRC, in its order, had said
that the non-inclusion of the promo song within the actual film was "deceptive" to viewers.

Yash Raj Films had approached the Apex court against the order, arguing that this was in
violation of the liberty of expression under Article 19(1), and also the production house had
made it clear within the promos and press releases that the song wasn't a part of the
film. additionally, it's been argued that the claim of "harm" caused to the viewer was false.
 3- Yash Raj Films Pvt Ltd vs Sri Sai Ganesh Prosductions
& Ors on 8 July, 2019
Court also held that the expression "to make a copy of the film" in Section 14(d)(i) does not
mean just to make a physical copy of the film by a process of duplication. Further, as the
scope of protection of a film is at par with other original works, the test laid down in R.G.
Anand v. M/s Deluxe Films and Ors. (1978) 4 SCC 118 would apply. Accordingly, this Court
will have to compare "the substance, the foundation, the kernel" of the two films

Adverse Media articles on the entity as well as its directors

 Yash Raj Films in legal trouble for allegedly pocketing Rs 100 cr worth royalties
belonging to music artistsThe case against Yash Raj Films has been registered under
sections 409 (criminal breach of trust) and 34 (common intention) of the Indian
Penal Code.

 An FIR was registered on Wednesday against Yash Raj Films Company and its
directors for allegedly pocketing Rs. 100 crore by collecting music royalties of
members of the Indian Performing Rights Society (IPRS) by Economic Offences
Wing (EOW) of the Mumbai Police, an official said, reports SOURCE - ( Press
Trust of India.)
 The Society alleged that Yash Raj Films did not let them collect royalties from
telecom companies, radio stations and music streaming platforms. The FIR mentions
the names of YRF and its directors Aditya and Uday Chopra, an official informed.
 The complainant claimed the IPRS has the exclusive right to collect royalties on
behalf of artists and music producers but the YRF collected it without authorization.
 "Yash Raj Films Company and its directors allegedly pocketed Rs. 100 crore by
collecting music royalties of members of the Indian Performing Rights Society
(IPRS)," the official said quoting the complaint, reported PTI.
 The case has been registered under sections 409 (criminal breach of trust) and 34
(common intention) of the Indian Penal Code (IPC) and relevant sections of the
Copyright Act, the official added. "Since this is a legal case the board can't comment
about it until tomorrow (Thursday)," stated a representative of the IPRS.
 Yash Raj Films show their support towards FWICE; seek bank details of 15,000 daily
wager - SOURCE (Bollywood Hungama)

 Ajay Devgn slaps legal notice on Yash Raj Films

Officials at Yash Raj Films (YRF) are in “shock” after receiving a legal notice from Ajay
Devgn Films (ADF), alleging malpractice in connection with the clash of the release of the
former’s “Jab Tak Hai Jaan” (JTHJ), with the latter’s “Son Of Sardaar” (SOS) on Diwali,
Nov 13. As per media reports, ADF has accused YRF of manipulating exhibitors and
distributors to release their film in more theatres than SOS. It has filed a complaint with the
Competition Commission of India. “The case of ADF is that a producers/distributor/exhibitor
cannot be allowed to enter into a tie-in arrangement which adversely affects competition.
YRF has entered into a tie-in arrangement with the exhibitors in a manner that it has made it
compulsory for the exhibitors to exhibit the untitled movie of YRF on Diwali day and two
weeks thereafter with all four shows,” said an official statement from the lawyers of ADF.
SOURCE ( the hindu )
FINDINGS
YRF has played an integral role in finding some of the finest talents in the Hindi film
industry, shaping their careers and giving wings to their dreams. From top-notch Directors to
iconic Actors, from renowned Lyricists to Music Maestros, from Writers to technicians
across all integral areas of film-making, YRF has been instrumental in not only building their
careers but transforming them into success stories. Today, some of these biggest names have
created a niche for themselves and have touched the skies with their unique achievements.

As per the report I have manage to collect the accurate data from the different source by
researching on them and these information truly based on the facts and material which are
available on the open source website and article pages .