COMPREHENSIVE

BUSINESS REPORT

Prepared for
BASILIC FLY
STUDIO LTD

Country: India
DigiAlly ID: INDCST0000224

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TABLE OF CONTENTS

SECTION PAGE

1. Executive Summary 3-4

2. Financial Analysis 5-7

3. Business Model Analysis 8 – 12

4. Reliability Report 13- 15

5. Result : SME Grade 16– 17

6. Conclusion and Recommendations 18- 19

7. Appendix 20

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EXECUTIVE SUMMARY
Registration Date 01/09/2023

Country India

Registration Capital Paid up capital is Rs.17cr.

Status Active

Type of company Public Limited

Tower A, KRC Commerzone Mount
Address Poonamallee Road, Porur, Chennai, Tamil
Nadu 600116
Website https://www.basilicflystudio.cm/

Year of establishment 28/01/2012

Turnover FY2022 INR 70.23 cr

Net Income FY2022 INR 26.44cr

639/
1000

Reliability Score Gold

Basilic Fly Studio(BFS) Limited is a visual effects (VFX) studio headquartered in Chennai, India
with subsidiaries operating in Canada and the UK. BFS is actively engaged in the post-production
business, offering high-end visual effects (VFX) and 2D to 3D conversion services to the media and
entertainment industry. They provides Visual Effects (VFX) solutions for movies, TV, net series, and
commercials. Note-worthy Projects include Top Gun - Maverick, The Whale, Spiderman -No Way
Home, Ad Astra, Avengers - End Game, Mary Poppins Returns, etc.

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EXECUTIVE SUMMARY

Services offered by BFS

SERVICES OFFERED-

A) Final Compositing and Rotoscopy,

B) Camera/ Body Tracking and Rotomation
C)Object Tracking,
D)Paint And Preparation,
E)Previs or Previsualization,
F)Computer Graphics, and
G)Onset Supervision.

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FINANCIAL ANALYSIS
PROFIT AND LOSS SUMMARY
March 31,
March 31, March 31,
Parameters (in cr) 2021
2022 2020

Operating revenue 70.23 23.88 17.27

Other Income 0.28 0.13 0.04

Total Revenue 70.51 24.01 17.31

Depreciation 0.56 0.28 0.44

Interest/Finance cost 0.69 0.09 0.18

P/L before tax 35.43 1.16 0.53

Tax 1.90 1.04 0.37

P/L for period 26.44 0.79 0.34

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FINANCIAL ANALYSIS
BALANCE SHEET SUMMARY
March 31, March 31, March 31,
Parameters(In cr)
2023 2022 2021
Total Shareholders funds 30.21 3.77 2.98

Long-term borrowings 2.53 3.09 0.16

Non-current liabilities 4.49 3.73 0.60

Short Term Borrowings 1.75 1.04 0.19

Trade Payables 2.21 1.64 2.52

Other Current Liabilities 3.96 3.35 3.07

Short Term Provisions 6.20 0.04 0.02

Total current liabilities 14.12 6.07 5.79

Total capital and liabilities 48.82 13.57 9.36

Fixed Assets 2.29 1.12 0.69

Non-Current Investments 2.08 2.08 0.00

Other Non-Current Assets 9.89 5.70 5.71

Total Non –current Assets 14.59 9.59 7.21

Trade Receivables 19.67 0.37 0.64

Cash And Cash Equivalents 5.36 3.17 1.10

Other Current Assets 9.20 0.44 0.41

Total Current Assets 34.23 3.98 2.15

Total Assets 48.82 13.57 9.36

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FINANCIAL ANALYSIS

FINANCIAL RATIOS
March 31, March 31, March 31,
Parameters
2023 2022 2021

Revenue Growth(%) 194.09 38.27 -

Net Profit Margin (%) 37.65 3.32 1.94

Profit Growth(%) 3246.83 132.35 -

Return on Net worth / Equity (%) 87.52 21.06 11.31

Return on Capital Employed (%) 104.07 16.63 19.87

Return on Assets (%) 54.16 5.84 3.59

Current Ratio 2.42 0.65 0.37

Total Debt/Equity 0.14 1.10 0.12

Interest coverage Ratio 53.50 18.00 6.28

Financial Leverage 1 1 0

Asset Turnover Ratio (%) 2.25 2.08 0.00

Basic EPS (Rs.) 15.55 0.47 0.20

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BUSINESS MODEL ANALYSIS
BFS
Basilic Fly Studio Ltd.
5
4.6 4.5
4.5
4 4
4

3.5
3
3

2.5
2
2

1.5

0.5

0
Business Revenue Competitive Scalability Distribution Government Tax Benefits
Model Landscape Support

Assumption: The scoring is done based on the industry and its environment level analysis not on company’s
individual performance in the evaluation parameters.

Evaluation Assessment
Parameters

Business Revenue To assess the company’s business operation by outlining how it is generating revenue, what
Model are its key products and services and who are their target customers.

Competitive To identify, research and evaluate competitors for the business and figure out where its
Landscape stands with regard to other players

Scalability To identify the business capacity to grow to meet increased demand.

Distribution To identify the current distribution channels of the entity to determine the target
demographic locations and demand for its products/services

Government Are there any Government support available for the company in a particular industry or for
Support its product/services.

Tax Benefits What are the tax benefits available to the entity or its product or services.

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BUSINESS MODEL ANALYSIS

Business Revenue Model

Basilic Fly Studio is a leading VFX provider for movies, TV, and commercials. With
strong partnerships and sub-contracting collaborations, they excel in delivering
industry-standard VFX solutions in both international and domestic markets. Their
focus on a productive and enjoyable work environment for their creative team
ensures quality results across movies, TV, web series, and commercials.

Currently, 100% revenue is coming from Hollywood movies. The company is

audited by major studios like Netflix, Disney, FOX Studios, SONY etc. generating
88% of its revenue from sub-contract services. With 500+ skilled professionals and
offices in Pune, London, and Vancouver. They are indulged in the service sector and
is currently engaged into B2B business.

India is a burgeoning hub for VFX, thanks to the surge in streaming services. Given
the proliferation of smart devices and digital streaming platforms, high-quality VFX
has become indispensable for studios and streaming services. AR's growing
significance in enhancing visual effects and streamlining post-production,
particularly in filmmaking, further fuels the global VFX industry's expansion.

The Net Profit of the company was at INR 26.44cr in FY2023 as the demand for
these services increased in the same year. The company's turnover has been increased
at the rate of 194% in FY2023 which shows a positive growth trend. BFS has shown
growth in Revenue by INR 46.35cr in FY2023 compared to previous FY2022.

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BUSINESS MODEL ANALYSIS

Competitive Landscape

The Media & Entertainment sector remains underpenetrated and accounts for less
than 0.9% of GDP, compared to 3 to 4% for many of the developed countries. The
global VFX market is on a robust growth path, projected to reach $48.9 billion by
2028 at a 10.9% CAGR. Augmented Reality (AR) plays a pivotal role, with a market
value of $9.95 billion in 2022, expected to nearly double to $18.02 billion by 2028 at
a 10.4% CAGR, driven primarily by North America's Hollywood-centric market.

Some of the competitors of in domestic Market are as follows:

1.Prime Focus Limited (Mumbai, Maharashtra):

- Founded in FY1997
- Provides end-to-end creative services, technology products & services,
production services and post-production services.
- Recent works: TENET, Interstellar, Inception etc.
- Annual Turnover up to Rs. 80cr
- Present globally
- Website: http://www.primefocus.com/

2. Phantom Digital Effects Limited (Mumbai, Maharashtra)

- Founded in FY2016
- Provides high-end visual effects solutions for commercials, feature films, and
Web series .
- Recent works: Vikram, RRR, Robot 2.0, Minnal Murali, Bahubali 1 and 2,
Avengers, Transformers
- Annual Turnover up to Rs. 60cr
- Present globally
- Website : https://phantomfx.com/index.html

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BUSINESS MODEL ANALYSIS
Scalability

Basilic Fly Studio, a prominent player in the Media Entertainment & Publication
industry, has demonstrated remarkable scalability in its operations. With operational
bases spanning across Chennai, Pune, Vancouver, and London, and plans to establish
two more dedicated facilities in India.

The company is strategically expanding its presence. Furthermore, Basilic Fly Studio
envisions global expansion into Eastern Europe and South Korea, showcasing its
ambition and adaptability in a dynamic industry. Its TPN certification underscores its
dedication to security and integrity in safeguarding content. In an ever-evolving VFX
industry, Basilic Fly Studio's scalability is evident through its focus on audience
reception and brand popularity, positioning it for sustained growth and success.

Distribution

BFS is currently engaged into B2B business. The company's commitment to

maintaining a dedicated team of 474 skilled technical and management professionals
ensures timely project completion . Company is planning for Rapid scaling of
employees from 450 presently to an expected 1200 employees by FY25 signifies
strong growth and increased operational capabilities.

BFS has a remarkable track record, having successfully completed over 10,000
projects to date. This includes work on 900 movies, over 2,000 series, and more than
8,000 commercials. BFS serves a diverse clientele of over 300 clients spanning
various industries. Currently the company has clients present across India and
abroad.

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BUSINESS MODEL ANALYSIS
Government Support

The Government of India has implemented several policies and initiatives to bolster
the media and entertainment industry. These measures include increasing the FDI
limit from 74% to 100% in cable and direct-to-home (DTH) satellite platforms,
granting industry status to the film sector to facilitate institutional finance access,
establishing the Film Facilitation Office (FFO) as a one-stop clearance point for
filming permissions, merging Film Media Units for improved coordination, and the
creation of an Animation, Visual Effects, Gaming, and Comic (AVGC) Centre for
Excellence in partnership with IIT Bombay.

Additionally, the government has announced plans to create a National Centre of

Excellence for AVGC and has facilitated significant FDI inflows into the information
and broadcasting sector. These initiatives are designed to drive growth and
innovation in India's media and entertainment industry.

Tax Benefits

India’s Corporate tax for companies having turnover above Rs.250 crores is 30%
and BFS does not fall under this tax category .

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RELIABILITY REPORT
Company Score

639

The solid line shows the reliability score of the SME and the dotted line
shows the average reliability score of the peers of the company in the
industry.
*Here the dotted line is just for illustrative purposes and does not represent the actual data.

The below table will be helpful in understanding the score obtained by Synova Co in each
parameter as a percentage of the maximum score for that parameter

Data yet to be
0-25% 26-50% 51-75% 76-100%
confirmed

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RELIABILITY REPORT

SL. RELIABILITY DIMENSION MODEL ASSIGNED

NO. WEIGHT GRADE

1 Promoters High

2 Investors High

3 Associations Low

4 Risk Score Medium

5 Social Impact Index Low

6 Employees High

7 Digitization Low

8 Cybersecurity Low

9 Green Index Low

10 Suppliers Low

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RELIABILITY REPORT

SL. RELIABILITY DIMENSION MODEL ASSIGNED

NO. WEIGHT GRADE

11 Customers High

12 Insurance Low

13 Finance High

14 Innovation Low

15 Technology Stat and Upgrade Low

16 Statutory Low

17 Compliance Industry Low

18 Quality Management Low

19 Supply Chain Management Low

20 Work Place Low

Final Score - 639

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RESULT : SME GRADE
Final grade

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RESULT : SME GRADE

Basilic Fly Studio LTD (BFS) is a visual effects (VFX) studio providing services
such as interior design, project management, construction and landscaping.

Following are BFS financial highlights:

1. There has been a significant increase in revenue of 194%. In the financial

statement for FY2023, BFS has reported the revenue of Rs. 70.23crore .
2. The Net Profit of the company are also increasing similar to the revenues. It
was the highest in FY2023 (26.44cr) as it started recovering and the market
demand increased.
3. The Shareholders funds stands at Rs.30.21cr in FY2023 stating increase in
capital and reserves.
4. There’s an increase in liabilities due to the expansions done in the company
5. New fixed assets have been introduced into the company to increase the scale of
business and for smooth working.
6. Working capital of the company is maintained at Rs.19.67cr in FY2023 .
7. In FY2022, BFS has debt/equity of 0.14 which indicates that the business has
enough cash to pay off its long -term liabilities.
8. ROE is maintained at 87.52% and ROCE is maintained at 104.07% for FY2023.

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CONCLUSION AND
RECOMMENDATIONS
Strengths
• Comprehensive VFX Services: Offers a
wide range of VFX services, including
advanced technologies.
• Experienced Team: Supported by
industry-experienced promoters and a
skilled operational team.
• Cost Efficiency: Utilizes India's
workforce advantages for competitive
pricing.
• Growth and Expansion: Achieved
impressive revenue growth and has plans
for international expansion.
Opportunities
• Market Growth: The VFX industry is
evolving, presenting opportunities for
Basilic Fly Studio to meet the rising
demand for visual effects in content
creation.
• Client Diversification: By attracting new
clients and diversifying its client base, the
company can reduce risk.
• International Expansion: Expanding into
South Korea and Eastern Europe can tap
into new markets and revenue streams.
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DigiAlly
Weaknesses
• Client Dependency: Heavy reliance on
its top five clients poses a risk if they
don't renew contracts.
• Financial Challenges: Negative cash
flow, outstanding loans, and compliance
issues can impact the company's financial
stability and long-term viability.
• Contract Vulnerability: Contracts that
clients can easily terminate without
penalties make revenue less predictable.
Threats
• Legal Battles: Ongoing legal disputes
with promoters and directors pose a
significant threat to operations and
financial stability.
• Competition: Intense industry
competition, including new entrants, may
affect the company's market position
• Currency Risks: Exposure to currency
fluctuations due to foreign exchange
regulations can result in financial losses.
18
CONCLUSION AND
RECOMMENDATIONS
Recommendations

Investing in this business is advisable due to increasing trend of revenue from

operation.

Conclusions:

• Basilic Fly Studio (BFS) is a visual effects (VFX) studio with a strong presence
in Hollywood, and it is poised for aggressive growth, as indicated by its plans for
rapid employee scaling and geographical diversification.
• Company has its own capital. They maintains quality of assets and revenue and
profits are increasing. Working capital cycle is in normal trend and promoters
good vintage which shows control over companies performance.
• BFS has shown significant revenue growth, with a 194% increase in FY2023,
along with a notable improvement in net profit, indicating a recovery from
previous years.

Recommendations:

• Continue investing in initiatives to boost sales and reduce costs, exploring

alternative service delivery methods to support growth.
• Improve the website, engage actively on social media, and showcase past
projects to expand the company's reach and resonate with like-minded clients.
• Reduce risk by actively pursuing new clients and diversifying beyond heavy
reliance on the top five, ensuring more stable and predictable revenue.
• Remain vigilant in the evolving VFX industry, continuously innovating and
adapting to market trends and emerging competition.

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DigiAlly 19
APPENDIX

Why Social Media Matters?

In today's fast-paced social media world, it is crucial for small and medium-sized
enterprises (SMEs) to establish a robust online presence. This presence not only
enhances their reputation but also fosters brand loyalty and drives business growth,
allowing SMEs to tap into the vast opportunities offered by social media.

DigiAlly’s Social Media Score

DigiAlly's Social Media Score evaluates campaign effectiveness and enables SMEs
to leverage social media opportunities. It provides insights and facilitates traction
through partnered financial institutions, recognizing its crucial role in achieving
success. It takes into account various parameters and categorizes companies into four
tiers: Bronze, Silver, Gold, and Platinum.

Our Assessment
BFS currently stands in the bronze tier due to its limited online presence on a few
platforms, with low frequency and engagement on X formerly known as Twitter and
Facebook.

Recommendations
To move from Bronze to Silver, BFS can enhance their social media presence
through engaging campaigns on LinkedIn, which is the most crucial social media
platform for B2B companies. They should provide valuable and regular content that
encourages audience participation, such as informative content about new
technological developments and exciting contests. Offering something enticing will
foster active participation.

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 72 Circular Road, #02-01, Singapore 04942
www.digiallyglobal.com
partner@digiallyglobal.com

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