FINANCIAL S

14195

FINANCIAL STATEMENT ANALYSIS

AN ANALYSIS ON COMPANIES FROM MEDIA &
ENTERTAINMENT INDUSTRY
PALLAVI SARKAR H14195

Acknowledgement

I would like to express my special gratitude and thanks to Fr. James Santhanam
S.J. who has been a tremendous mentor for me. I would like to thank him for
being my constant guide for my research and for allowing me to grow as
professional and his advice on both research as well as on my career have been
priceless. His constant guidance and encouragement has helped me understand
various difficult and important topics and their application. I would also like to
thank my commerce graduate friends in XLRI to help me out in the selection of
the required data and tools & techniques.

INDEX
1.

HISTORY

ANALYSIS

12

STRENGTH & WEAKNESSES

23

RECOMMENDATION

24

LIMITATION

26

CONCLUSION

27

APPENDIX

28

REFERENCES

58

BRIEF HISTORY
TV18

Television Eighteen India Ltd is India's No 1 News and Information Network and the premier
provider of business content in the country. The company is engaged in content production and
broadcasting. They operate India's leading business medium CNBC-TV18 & India's first consumer
focused business channel CNBC AWAAZ. Their subsidiaries include Television Eighteen Mauritius
Ltd, iNews.com Ltd, News Wire 18 India Pvt Ltd, RVT Investments Pvt Ltd, Television Eighteen
Media and Investment Ltd, Mauritius and MobileNXT Online Pvt Ltd. Television Eighteen India Ltd
was incorporated on September 24, 1993 as a private limited company and in November 2, 1994, the
company became a public limited company. The company became famous in their first year with the
launch of India's first ever show on satellite television, namely 'The India Show' on Star Plus in the
year 1993.
They also produced a weekly business news programme, namely India Business Report for BBC
World. In the year 1994, the company launched India's first street countdown show in 'Hinglish'.
In the year 1996, the company set up a wholly owned subsidiary in Mauritius, namely Television
Eighteen Mauritius Ltd. Also, the company through Television Eighteen Mauritius Ltd entered into a
joint venture and launched Asia Business News India, the 24-hour hour business news and
information channel. In December 1999, the company came out with a public issue of 29,36,000
equity shares of Rs 10 each at a premium of Rs 170 per share. In March 2000, they incorporated e18.com Pvt Ltd for setting up of business and finance internet portal. The subsidiary acquired
Moneycontrol Dot Com Private Ltd, the company owning the highly successful financial portal,
Money control.com in May 2000.
In August 28, 2000, they incorporated iNews.com Ltd as a subsidiary company. During the year
2001-02, the company hived off their entertainment part of the business to their 100% subsidiary,
Eighteen Entertainment India Ltd. In April 2002, they terminated their ad sales representation
relationship with Sony Entertainment Television and set up a dedicated in-house marketing and sales
team for the channel. In April 2003, they appointed Zee Turner as the cable distribution partner for
CNBC-TV18 service. During the year 2004-05, the company forayed into General News Space. In
October 2004, the company acquired the running business of an established commodities portal,
namely Agri Informatics India Pvt Ltd and in May 2005, the name was changed to Television
Eighteen Commoditiescontrol.Com Ltd. During the year 2005-06, the company launched a
subscription based investment advisory portal called poweryourtrade.com. Also, the company in joint
venture with Norwest Venture Partners launched a e-recruitment provider, namely jobstreet.com. In
4

December 2005, they launched a General English News Channel called CNN-IBN, which became the
number one English news channel in India.
In April 2006, the company acquired 50% stake in Channel 7, a general news channel in Hindi. In
November 2006, they acquired 'Crisil MarketWire', a realtime financial newswire, from Crisil Ltd,
India's leading credit rating agency. The company was renamed as 'Newswire18' and operates their
own real-time market data and news terminal. During the year 2007-08, the company entered into a
joint venture agreement with Jagran Prakashan to launch a Hindi Business daily for the Indian market
and subsequently will be followed by other Indian language dailies focused on financial and economic
news. They acquired 40% interest in Infomedia India Ltd during the year. In July 2007, e-18, a
subsidiary company acquired 35% in Ambit Capital Pvt Ltd. During the year 2008-09, the company
sold their investment in Mobilenet Teleservices Pvt Ltd & Mobilenet Online Pvt Ltd.

ZEE ENTERTAINMENT

Zee Entertainment Enterprises Ltd is one of India's leading television, media and entertainment
companies. The company is amongst the largest producers and aggregators of Hindi programming in
the world, with an extensive library housing over 100,000 hours of television content. With rights to
more than 3,000 movie titles from foremost studios and of iconic film stars, Zee houses the world's
largest Hindi film library. Through their strong presence worldwide, Zee entertains over 500 million
viewers across 167 countries. The company is a pioneer of television entertainment industry in India.
Their well-known brands include Zee TV, Zee Cinema, Zee Premier, Zee Action, Zee Classic, Ten
Sports, Ten Cricket, Ten Action+, Zee Cafe, Zee Studio, Zee Trendz, Zee Khana Khazana, Zee
Salaam, Zee Jagran, Zing, ETC Music and ETC Punjabi.
The company also has a strong offering in the regional language domain with channels such as Zee
Marathi, Zee Bangla, Zee Telugu, Zee Kannada, Zee Talkies and Zee Cinemalu. Zee Entertainment
Enterprises Ltd was incorporated in the year 1982. The company was previously known as Zee
Telefilms Ltd. In the year 1992, the company launched their flagship television channel Zee TV.
5

Since then, they have transformed themselves into an integrated media conglomerate with operations
spanning the entire media spectrum including television programming; satellite broadcasting;
production and distribution of films; music publishing, long distance education and the creation of
animation software. In the year 1994, Zee Records, the music-publishing arm of Zee, commenced
their operations. Also, they launched Zee Education as a division of the company. The company's
100% owned subsidiary, Siticable Networks Ltd (Siticable) commenced their operations as an MSO
in Delhi for cable distribution system in India.
In the year 1995, Newscorp acquired a 50% stake in Siticable Networks Ltd in an equal joint venture
with the company. The company launched Zee TV in the UK / Europe. Also, they launched Zee News
and Zee Cinema. In the year 1996, the company started their first cable channel in India under the
name of Siti Channel. In the year 1997, they launched Zee Music (originally known as Music Asia).
In the year 1998, the company launched Zee TV in the USA. Also, they launched Zee Cine Awards.
During the year 1998-99, the company obtained 'A' category license for providing Internet services in
India. During the year 1999-2000, the company acquired 50% stake in Asia Today Ltd, Siticable and
Programme Asia Trading Company Ltd. They launched four regional channels under the umbrella
brand of Alpha, namely Alpha Marathi, Alpha Bangla, Alpha Punjabi and Alpha Gujarato. Also, they
launched two new 24-hour channels, namely Zee English and Zee Movies to enter the English
language market. They launched two new channels namely Zee Bangla and Musia Asia in UK and
launched Zee Gold in USA.
During the year, the education division of the company was demerged and transferred to a separate
subsidiary company namely, Zee Interactive Learning Systems Ltd. In September 1999, the company
acquired Zee Multimedia Worldwide Ltd and thus all the international operations including the
broadcasting business of ZMWL came under the company's control. During the year 2000-01, the
company launched the Direct-to-Operator (DTO) encrypted channel bouquet comprising of Zee
Cinema, four Alpha channels and two English channels. Also, they divested their stake in Buddha
Films Ltd (BFL), Zee Sports Ltd (ZSL) and Zee Publishing Ltd (ZPL).
During the year 2001-02, the company produced their first big budget movie 'Gadar -Ek Prem Katha'.
They formed a joint venture company 'Zee Turner Pvt Ltd' to market and distribute the pay channel
bouquet consisting of 14 channels of Zee and 3 channels of Turner in the Indian sub-continent,
thereby creating a formidable combination of highly popular channels. They consolidated their
operations by linking their various control rooms through HFC. Master Control Rooms (MCR) was
established at Hyderabad and Bangalore linking the control rooms through optic fibre, thereby
ensuring improvement in the quality of signal delivery to customers. During the year, Zee Interactive
Multimedia Ltd, a company set up to provide broadband and conditional access services, merged with
Siticable Network Ltd. The company acquired a controlling stake in ETC Networks Ltd, a company
engaged in production, marketing and distribution of two television channels with a leading presence
in Music and Punjabi language segment. With these acquisitions ETC Networks Ltd became a
subsidiary of the company. Also, the company acquired a controlling stake in Padmalaya Telefilms
Ltd, a company engaged in production and distribution of feature films (in Telugu and Hindi
languages) and television serials. During the year 2002-03, the company hived off two of the foreign
subsidiaries namely Hokushan Trading Company Ltd and Asia TV USA, Inc. Also, three wholly
owned subsidiaries were merged with the company. During the year 2003-04, the company entered
into an MoU with Zee News Ltd, a company 100% owned by Indian nationals, for transfer of physical
infrastructure, the editorial and other staff etc, related to production and Broadcast of News and
Current Affairs programme on Zee television channels including Zee News. Dakshin Media Ltd, a
wholly owned subsidiary company was amalgamated with the company. Further, the company
6

consolidated operations of their foreign subsidiary company located at Mauritius by merging of Aisa
TV (Africa) Ltd, Software Supplies (International) Ltd, Zee Telefilms International Ltd and Zee
MGM Ltd with Asia Today Ltd, Mauritius. Also, another overseas subsidiary, Asia T.V. (Netherlands)
Ltd, BVI had been liquidated.
During the year 2004-05, the company launched a new channel, namely Zee Sports to the meet the
insatiable quest of Indian viewers to enjoy telecast of sports event in India and abroad. The company
divested their stake in Padamalaya Enterprises Pvt Ltd, which was the holding company of
Padamalaya Telefilms Ltd. Expand Fast Holdings Ltd, one of the overseas subsidiaries, merged with
Asia Today Ltd, Mauritius (ATL). Also, ATL, the wholly owned subsidiary of Winterheath Company
Ltd (WCL) merged with the holding company, WCL.
After the merger, WCL changed its name to Asia Today Ltd. Also, ATL acquired 100% stake in Pan
Asia Infrastructure Ltd, a Mauritius based company, engaged in the business of broadcast of
television channel in middle east in South Asian language and development of media city in Dubai.
During the year 2005-06, Siti Cable Network Ltd, a wholly owned subsidiary of the company
acquired entire shares in Indian Cable Net Company Ltd. During the year 2006-07, the company
completed the process of de-merger of their News, Cable and Direct Consumer Services business
undertakings. Respective resultant entities namely, Zee News Ltd (ZNL) for news business, Wire &
Wireless (India) Ltd (WWIL) for cable business and Dish TV India Ltd (formerly known as ASC
Enterprises Ltd) (Dish TV). Consequent to demerger of Cable and DCS Business Undertakings of the
company, the subsidiaries of the company pertaining to the said Business Undertakings, namely, Siti
Cable Network Ltd, Central Bombay Cable Networks Pvt Ltd, Integrated Subscribers Management
Services Ltd, New Era Entertainment Network Ltd, Siti CableBroadband South Ltd and Indian Cable
Net Company Ltd ceased to be subsidiaries of the company.
The company exited from their investment in 25 FPS Media Pvt Ltd (25 FPS) and consequently 25
FPS ceased to be a subsidiary with effect from July 24, 2006. In November 2006, Zee Sports
International Ltd, Mauritius, acquired 50% stake with majority representation in the board in Taj TV
Ltd, Mauritius, which owns 'Ten Sports' channel. Also, the company acquired 50% stake with
majority representation in the board in Taj Television India Pvt Ltd, Mumbai which is the distribution
arm of Ten Sports in India. The name of the company was changed from Zee Telefilms Ltd to Zee
Entertainment Enterprises Ltd with effect from January 10, 2007. During the year 2007-08, pursuant
to a scheme of amalgamation, ETC Networks Ltd, a listed subsidiary of the company, merged with
Zee Interactive Learning Systems Ltd. The merged entity was subsequently renamed as ETC
Networks Ltd. Asia Today Ltd., Mauritius, a wholly owned overseas subsidiary of the company
acquired entire equity stake in APAC Media Ventures Ltd, a company registered in Hongkong,
effective October 30, 2007, for the purpose of its broadcasting foray in the Asia Pacific Region.

During the year 2008-09, Asia Today Ltd., Mauritius, a wholly owned overseas subsidiary of the
company, acquired the balance 40% equity stake in Asia Business Broadcasting (Mauritius) Ltd, a
company registered in Mauritius and divested their entire 100% holding in Pan Asia Infrastructure Ltd,
Mauritius. Additionally with a view to comply with the regulatory requirements for Russian
Broadcasting Operations, Asia TV Ltd, UK, an overseas subsidiary created/ acquired an indirect
subsidiary called 'OOO Zee CIS Holdings Ltd' in Russia.

During the year, the company ventured into the film production and distribution business, with
launch of two labels, namely Zee Motion Pictures and Zee Limelight for mainstream and niche films,
respectively. For that the purpose, they acquired/created direct/ indirect subsidiaries namely, ZES
Holdings Ltd, Mauritius, Zee Entertainment Studios Ltd, British Virgin Islands, ZES Mauritius Ltd,
Mauritius, ZES International Ltd, United Kingdom and Zee Motion Pictures Pvt Ltd., India.

During the year 2009-10, as per the scheme of arrangement, the company demerged the Regional
General Entertainment Channel Business Undertaking (comprising of Zee Marathi, Zee Bangla, Zee
Talkies, Zee Telugu, Zee Cinemaalu and Zee Kannada television channels) of Zee News Ltd (ZNL)
vesting with the company on the appointed date, January 1, 2010. The scheme became effective from
March 29, 2010. Also, ETC Networks Ltd (ETC), a listed subsidiary of the company merged with the
company with effect from appointed date, March 31, 2010. Upon such merger, the Education
Business Undertaking of the company was demerged from the company and transferred to Zee Learn
Ltd on the appointed date, April 1, 2010. Also, the 9X Channel Business Undertaking of INX Media
Pvt Ltd (now known as 9X Media Private Ltd) was demerged and transferred to the company. During
the year, ETC Networks Ltd (ETC), the listed subsidiary of the company acquired the entire
shareholding in Cornershop Entertainment Company Pvte Ltd which in turn held 100% stake in
Cornershop Animation Pvt Ltd, Digital Media Convergence Ltd and Re-Med Services Pvt Ltd.
Subsequently, these subsidiaries amalgamated with ETC from the appointed date January 1, 2010 in
pursuance of a scheme of amalgamation which became effective on April 29, 2010. Asia TV Ltd,
United Kingdom, one of the overseas subsidiary along with its subsidiary OOO Zee CIS Holding Ltd,
Russia jointly acquired 100% stake in OOO Zee CIS Ltd, a broadcasting operating company in Russia.
During the year 2010-11, the company dissolved ZES International Ltd, UK, a wholly owned
subsidiary of ZES Entertainment Studios Ltd, BVI and Zee Sports Americas Ltd, Mauritius with
effect from June 29, 2010 and June 9, 2011. Asia Business Broadcasting (Mauritius) Ltd, Mauritius
was amalgamated with its holding company Asia Today Ltd, Mauritius. Also, Zee Entertainment
Studios Ltd, BVI and ZES Mauritius Ltd, Mauritius amalgamated with their holding company ZES
Holdings Ltd, Mauritius with effect from March 31, 2011 and March 18, 2011 respectively. Also,
ZES Mauritius Ltd, Mauritius divested their entire stake in the Indian subsidiary, Zee Motion Pictures
Pvt Ltd.
During the year, the joint ventures of the company in digital distribution viz. ITM Digital Pvt Ltd,
and in India branded Entertainment Portal viz. India Webportal Pvt Ltd commenced their operations.
The company has in-principle approved the acquisition of the balance shareholding of 5% in Taj TV
Ltd., Mauritius (Taj) by Zee Sports International Ltd, Mauritius (ZSIL), thus making Taj a wholly
owned subsidiary of ZSIL and the amalgamation of ZSIL with their holding company Asia Today Ltd,
Mauritius.

UTV

UTV Motion Pictures is a film unit of UTV Software Communications, a subsidiary of The Walt
Disney Company.
UTV Motion Pictures have formed one of the leading film studios in India. The Studios activities
span across creative development, production, marketing, distribution, licensing, merchandising and
syndication of films in India and worldwide.
UTV Motion Pictures as a dominant player in the Indian film industry has been in the forefront of
bringing Indian films to a global audience and the last decade in Indian cinema has seen UTV Motion
Pictures delivering some of the most iconic films. UTV Motion Pictures' films have also been selected
to represent India at the Academy awards; films were Rang De Basanti (2006),Harishchandrachi
Factory (2009) Peepli Live (2010) and Barfi! (2012). In 2011, UTV Motion Pictures also became one
of the few studios to successfully venture into South Indian cinema. UTV Motion Pictures has a
library of over 70 films including Hindi, Regional, Animation and International Productions, which
have been showcased in over 50 festivals across 28 countries, receiving almost 250 awards in the last
7 years.
UTV Software Communications Ltd is India's first integrated global media and entertainment
company. The company has five business verticals, which includes TV content production & services,
motion pictures, broadcast, interactive and new media. The company and their subsidiaries create,
aggregate and disseminate content of various genres across varied distribution platforms.The
company has subsidiaries with offices across India, Mauritius, UK USA and Japan. Their subsidiaries
includes UMP Plc, UTV Motion Pictures Mauritius Ltd, IG Interactive Entertainment Ltd, UTV
Communications (USA) LLC and Ignition Entertainment Ltd. The company has grown from a
Television Production house, into an integrated media company with interests in Motion Pictures,
New Media that includes Animation and Gaming, Television Content and Broadcasting.
UTV Software Communications Ltd was incorporated in June 22, 1990 as a private limited. The
company became a public limited on November 27, 1995. The company primarily engaged in the
production of television content for Doordarshan and ad films. In the year 1992, with the entry of
satellite TV, the company produced the content of around 250 hours for Zee TV and became one of
the largest content providers. During the same period, the company expanded their business into inflight entertainment programming and dubbing. In the year 1993, the company ventured into business
of acquiring programs from outside producers and marketing airtime on their programs. In the year
9

1995, they launched India's first daily soap titled Shanti. In May 1995, the company acquired Laezer
Production Pvt Ltd in order to enter into the area of postproduction. During the year 1995-96, the
company ventured into movie distribution business.
In November 1998, the company diversified into broadcasting business, by acquiring interest in Vijay
Television Ltd. In the year 2000, they incorporated UTV Net Solutions Ltd. In August 2000, the
company acquired UTV International (Singapore) Pte Ltd from Media Ventures Ltd and Unilazer
Hong Kong Ltd through a share swap. Also, they acquired the remaining equity share in United
Studios Ltd and thus became a wholly owned subsidiary company.
In the year 2001, the company acquired the remaining 80% stake in Vijay Television Pvt Ltd for a
consideration of Rs 69.52 million. During the year 2002-03, they acquired the studio business of
Western Outdoor Media Technologies Ltd in order to attain leadership position in post-production,
special effects and animation business. Also, they sold their entire holdings in UTV International
(Singapore) Pte Ltd and Sharkstream.com Pte Ltd to Logic Plastic Pvt Ltd. In February 2004, the
company hived off their post-production and 2D animation business in favour of United
Entertainment Solutions Pvt Ltd. During the year 2004-05, the company successfully launched a
worldwide Film Distribution Network with offices in USA, UK and Mauritius, For that, they
incorporated three wholly subsidiaries, namely UTV Communications (USA) LLC, UTV
Communication (UK) Ltd, UTV Communications (Mauritius) Ltd. Also, they successfully completed
their IPO, comprising around 7 million equity shares and were issued at Rs 130 per share. The IPO
was oversubscribed about 27 times. In August 2004, they sold their 43.89 stake in Vijay Television
Pvt Ltd to STAR Group. Also, they sold their holding in Media Capital Company (India) Ltd for a
consideration of Rs 2 lakh. In September 2004, the company through their joint venture United Home
Entertainment Pvt Ltd launched India's first local content kids channel titled, Hungama TV.
During the year 2005-06, the company produced programmes for channels like Star Plus, Star One,
Sony Entertainment Television, Zee TV, Zee Cafe, BBC World, Doordarshan and Hungama TV. In
the Airtime Sales business, the company acts as a quasi-broadcaster primarily on a leading South
Indian Network. They market airtime across 4 major languages, namely Tamil, Telugu, Malayalam
and Kanada. In March 2006, the company sold their entire holding in UTV International Holdings
(BVI) Ltd to Media Footing Sdn Bhd for a consideration of USD 5,10,000. During the year 2006-07,
the company inducted a strategic investor, namely The Walt Disney Company (Southeast Asia) Pte
Ltd, whereby, Disney acquired 14.85% stake in the company. Disney also acquired the company's
entire stake in their broadcasting venture, United Home Entertainment Ltd (Hungama TV). Also, the
company transferred their motion pictures production business to UTV Motion Pictures (Mauritius)
Ltd.
United Entertainment Solutions Ltd, a wholly subsidiary company merged with the company with
effect from April 1, 2006. In March 2007, UMP Plc was incorporated at Isle of Man and became a
wholly owned subsidiary of the company on April 12, 2007.
During the year 2007-08, UMP Plc, a subsidiary company acquired 99.75% controlling stake in UTV
Motion Pictures (Mauritius) Ltd and thus UTV Motion Pictures (Mauritius) Ltd became a downstream
subsidiary of the company. During the year, the company incorporated two 50:50 joint ventures
companies, namely Windmill Entertainment Ltd and Smriti Irani Television Ltd. During the year, the
Disney increased their stake in the company from 13.7% to 32.1%. During the year, the company
forayed into the Telugu film industry and acquired distribution rights for Telugu Superstar Mahesh
Babu's 2008 blockbuster 'Atidthi' and signed him for another 2 movies. They also ventured into the
10

Tamil film industry with their first co-production 'Kennamoochi Yennada'. The company tent-pole
production 'Jodha Akbar', the first blockbuster of 2008, released in 1500 screens worldwide.
In December 14, 2007, IG Interactive Entertainment Ltd acquired 54.86 % equity stake in
Indiagames Ltd, which is into the business of mobile and online gaming. Simultaneously, the
company also acquired 12.11% equity stake in Indiagames Ltd. Thus, the company along with IG
Interactive Entertainment Ltd holds 66.97% stake in Indiagames Ltd. In January 2008, the company
acquired 100% stake in UTV TV Content Ltd (formerly known as UTV Movies Ltd) for a
consideration of Rs 0.50 million. Also, they sold their 98.75% equity stake in UTV Broadcasting Ltd,
a dormant company for a consideration of Rs 19.75 million. In April 2008, the company acquired
100% equity stake in UTV New Media Ltd, which is in the business of developing and maintaining
websites and acquisition and exploitation of digital rights on mobile and digital platforms. In May
2008, the company incorporated a joint venture company, namely RB Entertainment Ltd. Also, they
acquired 100% holdings in First Future Agri & Developers Private Ltd. In June 2008, 'The
Happening', the first mainstream Hollywood film was released by the company. In July 2008, the
company's broadcasting unit entered a deal with IPTV service provider, The New Media Group, to
launch two channels on the IPTV platform. Hindi movie channel UTV Movies, and English business
news channel UTVi, will be launched in Japan, Australia and New Zealand on the 'World OnDemand' IPTV platform. Also, the company entered into a MoU to acquire a 51% stake in one of the
tier mobile content aggregator in the United States of America through one of the Company's
subsidiary, Indiagames Ltd. In August 2008, the company acquired 75% equity stake in UTV Global
Broadcasting Ltd. Also, IG Interactive Entertainment Ltd (IGI), a UK based 100% subsidiary of the
company, entered into definitive agreements with True Games Interactive (True Games), a California
based corporation for acquisition of 80% stake in True Games

PVR

PVR Ltd is a leading and premium Multiplex Cinema Exhibition company. The company pioneered
the multiplex revolution in India by establishing the country's first multiplex cinema. The company
also earns revenue from in-cinema advertisements/product displays and in-cinema sale of food and
beverages. The company is the largest Multiplex Cinema operator by number of screens in India. The
company has four subsidiaries namely CR Retail Malls (India) Pvt Ltd, Sunrise Infotainment Pvt Ltd,
PVR Pictures Ltd and PVR bluO Entertainment Ltd. The company operates a film distribution and
production business through their subsidiary, PVR Pictures, which acquires and distributes Indian and
11

international films. PVR Ltd was incorporated on April 26, 1995 as Priya Village Roadshow Ltd,
pursuant to a joint venture agreement between Priya Exhibitors Pvt Ltd and Village Roadshow Ltd.
The company established the first Multiplex Cinema in India, PVR Anupam, in Saket, New Delhi in
June 1997 and they computerized box office operations by selling computerized tickets.
In January 2000, the company commenced single-screen cinema PVR Priya at Vasant Vihar, New
Delhi. In April 2001, the company opened a four-screen Multiplex Cinema, PVR Naraina in New
Delhi and in November 2002, they opened a three-screen Multiplex Cinema, PVR Vikaspuri in New
Delhi. In the year 2002, as a part of disinvestment, Village Roadshow Ltd sold their entire
shareholding to Priya Exhibitors Private Ltd. Hence, the company changed their name from Priya
Village Roadshow Ltd to PVR Ltd with effect from June 28, 2002. In March 2003, the India
Advantage Fund-I managed by ICICI Venture Funds Management Company Ltd, invested Rs. 380
million in the company by acquiring 38.45% stake by way of purchase of equity shares from BIPL.
In May 2003, the company opened a seven-screen Multiplex Cinema, PVR Gurgaon at the
Metropolitan mall, Gurgaon, Haryana. In the year 2004, they opened India's largest Multiplex Cinema,
PVR Bangalore, with eleven screens at the Forum mall, Koramangla, Bangalore. In May 2004, the
company opened PVR Plaza, a single-screen cinema with a heritage ambience at Connaught Place,
New Delhi and in November 2004, they commenced operations at the first multiplex under the
management fees/franchise model - PVR SRS, a three screen Multiplex Cinema at SRS mall,
Faridabad, Haryana. In March 2005, the company opened their Multiplex Cinema, PVR EDM, a
three-screen cinema at East Delhi Mall, Uttar Pradesh.
During the year 2005-06, the company commenced operations at three new multiplex projects
namely PVR Punjagutta - Hyderabad, PVR Rivoli - Delhi and Spice PVR - Noida. They also
commenced operations at five new multiplex properties at Mumbai, Indore, Lucknow and Gurgaon.
PVR Pictures Ltd became 100% subsidiary of the company during the year.
During the year, the company made an initial public offering of 7,700,000 equity shares, comprising
a fresh issue of 5,700,000 equity shares by the company and an offer for sale of 2,000,000 equity
shares by The Western India Trustee and Executor Company Ltd. In January 4, 2006, the company's
shares were listed on the National Stock Exchange and the Bombay Stock Exchange. During the year
2006-07, the company commenced commercial operations form seven new multiplex projects namely,
PVR Juhu, Mumbai; PVR Indore, PVR Lucknow, PVR Mulund, Mumbai, PVR Sahara Mall,
Gurgaon, PVR Talkies, Aurangabad and PVR Talkies, Latur, Also, they acquired the entire
shareholding of Sunrise Infotainment Pvt Ltd thereby making it as a wholly owned subsidiary
company. During the year, the company launched a new brand of cinema called 'PVR Talkies' to cater
the demand of the cinema viewing public in class B & C cities at a lower price range for an enhanced
movie viewing experience. They opened their PVR Talkies multiplexes at Aurangabad. The company
entered into the business of Food Court by launching its first outlet at Sahara Mall, Gurgaon, Haryana
by the name of 'PVR Food Union'.
During the year 2007-08, the company commenced operations at four new multiplex projects,
thereby adding 16 new screens under operation. The company operates film distribution and
production business through its subsidiary, PVR Pictures. is involved in production of Hindi films and
distribution of Indian and international films. 'Taare Zameen Par' and 'Jaane Tu ya Jaane na' the first
two co-production movies of PVR Pictures, released during the year. During the year, the company
introduced PVR Premiere brand with their first cinema at Select Citywalk Mall in Delhi. The
company signed an MoU with Gyan Enterprises Pvt Ltd to enter in to a joint venture through a special
12

purpose vehicle namely Lite Bite Foods Pvt Ltd for the purpose of running, managing and operating
Food Courts, Restaurants, Pubs, Coffee Shops etc. In March 28, 2008, the company incorporated
PVR bluO Entertainment Ltd as a subsidiary of the company pursuant to the joint venture with Major
Cineplex Group, for carrying out the activities of setting-up and running Bowling Alleys, Karaoke
Centers and Ice Skating Rinks across India. During the year 2008-09, the company and their
subsidiaries started commercial operations at Ambience Mall, Ambience Food Court, Chandigarh,
Phoenix Mills Limited, Mumbai and Oberoi Malls, Mumbai. In May 2008, Sunrise Infotainment Pvt
Ltd opened their multiplex and in December 26, 2008, C R Retail Malls (India) Pvt Ltd opened a
multiplex in Mumbai. PVR Pictures Ltd, the wholly owned subsidiary company co-produced a movie
namely 'Jaane Tu Ya Jaane Na' with Amir Khan Production Pvt Ltd. In March 12, 2009, PVR bluO
opened their first and India's largest 24 lane Bowling Centre with the brand name of 'blu-O' located at
prestigious Ambience Mall in Gurgaon. The company has been pursuing an expansion plan that
involves setting up of 42 additional screens in the next year, which will be in line with our strategy to
be the major Cinema Exhibition player in the country. The company filed a scheme of amalgamation
entailing merger of Sunrise Infotainment Pvt Ltd, a subsidiary company with the company with the
appointed date April 01, 2008 and the Hon'ble Delhi High Court approved the merger on August 4,
2009.

FINANCIAL ANALYSIS
HORIZONTAL & TREND ANALYSIS
1. INVENTORIES
Inventories are typically classified as current assets on the balance sheet. Managerial
accounting courses cover the specifics of accounting for manufactured inventory. Generally
its being focussed on the general principles of inventory accounting those are applicable to
most enterprises. If we compare the individual inventories, it has always been high than the
industry average. UTV in 2010 showed the highest variation in the inventory whereas the
PVR Cinemas has remained with the impeccable constant level of inventories.
2.PBDIT
Profit before interest and taxes have been a very good parameter for obtaining the
performance of the companies. The industry average has loomed very low here as this is
made up of about 70 small and big companies. Maximum variation here can be seen in TV18
in the period between Mar 2010-Mar 2011. Overall the fluctuations has been very small and
the UTV shown a great recovery from negative variation to positive one and later remained
stable.

13

3.SALES TURNOVER

Sales turnover represents the value of goods and services provided to customers during a specified
time period - usually one year. The term is often just referred to as sales or net sales, which means
revenues without VAT. Sales turnover is usually expressed in monetary terms but can also be in total
units of stock or products sold. It is often described by being converted into the company's accounting
currency.TV18 has shown the maximum sales turnover. This was attributed to the fact that the
company expanded three folds and ventured into different domains of entertainment. Zee remained at
the above average performer in this and industry average was lower than the players.

4.DEBTORS
SUNDRY DEBTOR - is an entity from who amounts are due for goods sold or services rendered or in
respect of contractual obligations. Also termed: debtor, trade debtor, and account debtors. Here, due to
expansion of the company the sundry debtors also increased in case of the TV18 network. UTV has
remained very successful in curbing this to some extent. Zee has remained at a predictable rate in this
venture.
5.TOTAL EXPENSES

The total expenses incurred by the company have remained one of the aspect with irregular variations
among all the four players. Maximum variation appeared during the initial periods in TV18 and the
UTV which later recovered to some extent. This can be attributed due to the different strategies and
the level of expansion forced by the company for their promotion.

6. NET SALES

On the field of net sales TV18 has remained quite strong. YOY it has posted high net sales. PVR in
this parameter has remained very strong and has always posted positive variation in terms on net sales.
This shows the incremental strengthening of the company with respect to other companies. The
industry average has rather remained on the lower side. The industry trend has ore or less followed by
the observed companies.

14

VERTICAL ANALYSIS
1. TOTAL LIABILITY

The aggregate of all debts an individual or company is liable for. Total liabilities can be easily
calculated by summing all of one's short-term and long-term liabilities, along with any off balance
sheet liabilities which corporations may incur. On the balance sheet, total liabilities plus equity must
equal total assets. A company's total liabilities can be split up into two basic parts, short- and longterm liabilities. Short-term liabilities are typically liabilities which are due within one year or less.
Long-term liabilities are those with a time horizon of maturity is past the one year point. Liabilities
such as loans, leases and taxes due can fall into either category.
In this aspect, all the companies have remained at the higher than industry average in all the periods
of observation. UTV has shown the high liability as compared to other companies an ZEE has
managed to remain at the closest to the industry average.
2.TOTAL ASSET
In financial accounting, an asset is an economic resource. Anything tangible or intangible that is
capable of being owned or controlled to produce value and that is held to have positive economic
value is considered an asset. Simply stated, assets represent value of ownership that can be converted
into cash (although cash itself is also considered an asset).The balance sheet of a firm records the
monetary value of the assets owned by the firm. It is money and other valuables belonging to an
individual or business. Two major asset classes are tangible assets and intangible assets. Tangible
assets contain various subclasses, including current assets and fixed assets. Current assets include
inventory, while fixed assets include such items as buildings and equipment.

Intangible assets are nonphysical resources and rights that have a value to the firm because they give
the firm some kind of advantage in the market place. Examples of intangible assets are goodwill,
copyrights, trademarks, patents and computer programs, and financial assets, including such items as
accounts debtors, bonds and stocks.
Total asset has always remained more than industry average for these companies. Strikingly
difference can be observed in the total asset of the TV18 , UTV combined and PVR ,ZEE on other
side. In entertainment sector this will be very common feature for the companies to have copyrights of
the popular television soaps and the series.

3.OPERATING PROFIT
This is the profit earned from a firm's normal core business operations. This value does not include
any profit earned from the firm's investments (such as earnings from firms in which the company has
partial interest) and the effects of interest and taxes. Thus it gives the direct effect of the company
functioning and efficiency. In this parameter, UTV has shown negative variation with a larger extent.
Industry average has always remained positive throughout the period.

15

FINANCIAL RATIO ANALYSIS

1.DEBT EQUITY RATIO

A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders'
equity. It indicates what proportion of equity and debt the company is using to finance its assets.
Sometimes only interest-bearing, long-term debt is used instead of total liabilities in the calculation.
Also known as the Personal Debt/Equity Ratio, this ratio can be applied to personal financial
statements as well as corporate ones.
A high debt/equity ratio generally means that a company has been aggressive in financing its growth
with debt. This can result in volatile earnings as a result of the additional interest expense.If a lot of
debt is used to finance increased operations (high debt to equity), the company could potentially
generate more earnings than it would have without this outside financing. If this were to increase
earnings by a greater amount than the debt cost (interest), then the shareholders benefit as more
earnings are being spread among the same amount of shareholders. However, the cost of this debt
financing may outweigh the return that the company generates on the debt through investment and
business activities and become too much for the company to handle. This can lead to bankruptcy,
which would leave shareholders with nothing. The debt/equity ratio also depends on the industry in
which the company operates. For example, capital-intensive industries such as auto manufacturing
tend to have a debt/equity ratio above 2, while personal computer companies have a debt/equity of
under 0.5.
Here, UTV and Zee Entertainment has shown phenomenal growth depicted by their debt to equity
ratio. Industry average has loomed around 0.5 and most companies had remained above this ratio
mark.

2.FIXED ASSET TURNOVER

A financial ratio of net sales to fixed assets. The fixed-asset turnover ratio measures a company's
ability to generate net sales from fixed-asset investments - specifically property, plant and equipment
(PP&E) - net of depreciation. A higher fixed-asset turnover ratio shows that the company has been
more effective in using the investment in fixed assets to generate revenues. This ratio is often used as
a measure in manufacturing industries, where major purchases are made for PP&E to help increase
output. When companies make these large purchases, prudent investors watch this ratio in following
years to see how effective the investment in the fixed assets was.
If the fixed asset turnover ratio is low as compared to the industry or past years of data for the firm, it
means that sales are low or the investment in plant and equipment is too high. Industry average is on
this side. This may not be a serious problem if the company has just made an investment in fixed asset
to modernize, for example. If the fixed asset turnover ratio is too high, then the business firm is likely
16

operating over capacity and needs to either increase its asset base (plant, property, equipment) to
support its sales or reduce its capacity. This is shown in the UTV financial data and the Zee.
3.INVENTORY TURNOVER RATIO

Inventory Turnover Ratio is one of the efficiency ratios and measures the number of times, on average,
the inventory is sold and replaced during the fiscal year. Inventory Turnover Ratio measures
company's efficiency in turning its inventory into sales. Its purpose is to measure the liquidity of the
inventory.
Inventory Turnover Ratio is figured as "turnover times". Average inventory should be used for
inventory level to minimize the effect of seasonality. This ratio should be compared against industry
averages.
A low inventory turnover ratio is a signal of inefficiency, since inventory usually has a rate of return
of zero. It also implies either poor sales or excess inventory. This can be seen in UTV data. A low
turnover rate can indicate poor liquidity, possible overstocking, and obsolescence, but it may also
reflect a planned inventory build-up in the case of material shortages or in anticipation of rapidly
rising prices. A high inventory turnover ratio implies either strong sales or ineffective buying (the
company buys too often in small quantities, therefore the buying price is higher).A high inventory
turnover ratio can indicate better liquidity, but it can also indicate a shortage or inadequate inventory
levels, which may lead to a loss in business. This can be observed in the case of the TV18 or Zee.
High inventory levels are usual unhealthy because they represent an investment with a rate of return
of zero. It also opens the company up to trouble if the prices begin to fall. A good rule of thumb is that
17

if inventory turnover ratio multiply by gross profit margin (in percentage) is 100 percent or higher,
then the average inventory is not too high.
4.DEBTORS TURNOVER RATIO

Debtors Turnover Ratio is one of the efficiency ratios and measures the number of times
debtors are collected, on average, during the fiscal year.
Debtor turnover ratio measures company's efficiency in collecting its sales on credit and
collection policies. This ratio takes in consideration ONLY the credit sales. If the cash sales
are included, the ratio will be affected and may lose its significance. It is best to use average
accounts debtors to avoid seasonality effects. If the company uses discounts, those discounts
must be taken into consideration when calculate net accounts debtors.
Accounts debtors represents the indirect interest free loans that the company is providing to
its clients. Therefore, it is very important to know how "costly" these loans are for the
company.
A high debtors turnover ratio implies either that the company operates on a cash basis or that
its extension of credit and collection of accounts debtors are efficient. Also, a high ratio
reflects a short lapse of time between sales and the collection of cash, while a low number
means collection takes longer. The lower the ratio is the longer debtors are being held and the
risk to not be collected increases. A low debtors turnover ratio implies that the company
should re-assess its credit policies in order to ensure the timely collection of credit sales that
is not earning interest for the firm.
A ratio that is low by industry standards will generally indicate that your business needs to
improve its credit policies and collection procedures.
If the ratio is going up, either collection efforts may be improving, sales may be raising or
debtors are being reduced.
Debtors turnover ratio is figured as "turnover times". A popular variant of this ratio is to
convert it into an average collection period in terms of days.
5.CURRENT RATIO
Current Ratio is a liquidity ratio that measures company's ability to pay its debt over the next
12 months or its business cycle.
Current ratio is a financial ratio that measures whether or not a company has enough
resources to pay its debt over the next business cycle (usually 12 months) by comparing
firm's current assets to its current liabilities. Acceptable current ratio values vary from
industry to industry. Generally, a current ratio of 2:1 is considered to be acceptable. The
higher the current ratio is, the more capable the company is to pay its obligations. Current
ratio is also affected by seasonality.
18

If current ratio is below 1 (current liabilities exceed current assets), then the company may
have problems paying its bills on time. This can be seen in the TV18 situation. However, low
values do not indicate a critical problem but should concern the management. One exception
to the rule is considered fast-food industry because the inventory turns over much more
rapidly than the accounts payable becoming due.
Current ratio gives an idea of company's operating efficiency. PVR and the industry average
has shown the high current ratio. A high ratio indicates "safe" liquidity, but also it can be a
signal that the company has problems getting paid on its receivable or have long inventory
turnover, both symptoms that the company may not be efficiently using its current assets.

STRENGTHS & WEAKNESSES

TV18
In fiscal 2013, TV18s operating profit margin was 20% of net revenue of Rs.541.5 crore.
The margin is under pressure and, of its three main cost headsstaff, production and
distributionit has targeted the first two to shore up profitability.
The strength of the TV18 news channels lies in their being distributed as part of IndiaCast,
which includes entertainment and childrens channels, unlike NDTV for instance, said a
person who has worked closely with TV18 in the past. IndiaCast is a joint venture between
TV18 and Viacom18 that distributes all the channels of TV18 and Viacom18 across
platforms such as cable, direct-to-home (DTH) and Internet protocol TV (IPTV).
Given current market reality, thoughslowing ad spending, an economy in troublethe
company will have to rationalize marketing, distribution and programme costs, the analyst
said. Still, it isnt exactly comparable with any other group since it is highly diversified, not
family-owned, and professionally run.But one of its weaknesses is that it has probably spread
itself too thin. Now it is setting out to reverse the whole process, getting rid of the non-core
businesses and consolidating. Most of those likely to be laid off are from the editorial and
technical teams. The marketing team is pretty lean as it is, said a person familiar with the
development.Some of these acquisitions had gone horribly wrong, according a second
TV18 official. The Tata Donnelley (Ltd) acquisition bled us by Rs.250 crore, he added.
The company, which published the Yellow Pages, was renamed Infomedia18 Ltd. TV18 sold
some of the businesses of this firm earlier this year, and is looking for buyers for others.
ZEE
ZEE has been the leading broadcaster in India and overseas for South East Asian content and
bestows the first mover advantage across genres. It has the widest offering of channels by a
single broadcaster in the country. Across genres, ZEE channels are either leaders or strong
19

contenders for the leadership Position. Diversified revenue streams: advertising and
subscription large network gives tremendous leverage with advertisers. Affiliate companies
have leading presence across the media value chain cable and distribution, direct-to-home
satellite services, digital media amongst others
UTV
Good Infrastructure and assets gives it a competitive advantage. Entertainment across all
media devices and gadgets leaving no stone unturned in media industry which cross promotes
inter institution brand. The UTV group has expanded into 5 verticals, all of which allow for
synergy across in terms of content development, communication and development of thought
leadership. This also creates exciting opportunities for employees to move across businesses
in order to broaden their experience and enrich their career. Strong brand presence in the
industry and high market share.
Late entry into the market compared to leading players and the heavy competition from the
competitors. Government hasseles and the requirement of financial restructuring forced due
to high competition.
PVR
PVR has got the first mover advantage in multiplex business in India.It Develop and operate
state-of-the-artmultiplexes to create superior quality ambiance, Usage of technologically
updated systems like Dolby stereo sound system, Digital Cinema technology, Xenon
technology etc.It has gained exclusive rights to screen blockbusters from major distributors
mainly Warner brothers, 20th century fox etc. Assets in the prime location such as largest
multiplex operators in the world with more than 1500 screens under operation and very
strong brand equity and blend of retail and entertainment.
Weaknesses comprises of the strategic pint of view and the financial aspects. As ticket sales
at higher prices, Customer retention over longer terms is a problem. Parking problems are
there which leads to Lack of customer feedback for improvement of services. Governments
interference with entertainment tax. Consumer resorting to other ways of entertainment.
Piracy and economic slowdown may affect industry.

Recommendations
The Media & Entertainment Industry is comprised of a set of diversified companies. They are
mainly television network and station owners, and are typically involved in programming and
production of content, including feature films. It is a constantly evolving group, with
prospects in certain subsectors being much better than in others. Revenue trends in certain
core segments, including broadcast television and radio, tend to vary with consumers' and
advertisers' preferences towards new forms of media. Several conglomerates control a large
proportion of the industry, somewhat limiting competitive pressures.

20

Environmental Factors
The trend in advertising spending is an important factor affecting this group. Indeed, a large
proportion of this industry's top line is derived from ad expenditures, on both the national and
regional levels. Strong demand in the upfront (advance) market occurs during an economic
upturn, indicating bright prospects. Auto manufacturers are the largest advertisers, while
retailers and financial services companies also play a large role. However, when these firms
slash spending, it hampers the earnings of entertainment companies heavily reliant on
advertising. Meanwhile, a television station owner's ad income tends to fluctuate in tandem
with viewership ratings. In addition, ad pricing can be affected by various metrics. Examples
would be the level of airtime inventory, occurrences of local and general elections, and the
Olympics. Finally, other forms of revenue may consist of affiliate fees from cable television
providers, the sale of syndication program rights, film box office receipts, as well as sales of
physical media (such as DVDs) and downloadable content.
A flourishing economy will help broadcasters by way of higher corporate ad demand and
more personal spending. During a slow economy, corporations are likely to cut their
advertising spending. However, entertainment companies can often mitigate the effect
through initiatives such as higher affiliate fees, which work to support the top line. Reviewing
a company's earnings history should be indicative of how well it has navigated economic
slumps.Technological advances also play a role in the industry. Products, such as namely
digital media and high-definition (HD) content, have widened consumer choice, which tends
to spur competition. On point, subscriber acquisition costs, consisting of programming,
production, distribution and marketing expenses, are likely to increase.
Asset Mixes
When evaluating a media firm, consideration should be given to the businesses in which it
operates and the proportion of revenues accorded to each endeavour. For instance, cable
television and outdoor advertising (billboards) may be seen as having better prospects than
radio. Companies with larger, more diverse holdings are often capable of realizing revenue
and cost synergies that mitigate some risk. In addition, operating margin improvement is
usually driven by cross-platform tie-ins of popular brands through various outlets, such as
consumer products (namely toys) that market popular films.
Buyouts and divestitures are common among industry participants seeking to achieve the
ideal structure. Popular areas for purchases can include, but are not limited to, video gaming,
digital, and online properties. The deals may not be immediately beneficial to the bottom line,
though, because of increased R&D and content development expenses. In the meantime,
divestiture of traditional radio properties is a common thread in the industry. Finally,
regulations, including those pertaining to restrictions on the ownership of multiple television
stations in one market, impact the composition of the industry and foster competition.
Investments in Growth

21

Consumer preferences often change, and successful media companies periodically review
their portfolios, while taking action to improve their product mix. The creation of quality
content is becoming increasingly important, as is international expansion. Large
conglomerates with strong balance sheets, access to cheap capital, and strong distribution
capabilities are best positioned for overseas ventures. Smaller companies, operating in one or
two subsectors, may be ill-equipped to invest in operations that will boost their profit growth
potential. Meanwhile, the growth of emerging markets is a positive for the industry. Indeed,
many companies have taken a foothold in these markets, and continued expansion in this
regard is likely.
A healthy financial position is vital in determining the ability of a media firm to make the
right investments. A moderate amount of leverage is seen as being favourable, since
borrowings are often required for investments in small acquisitions or new projects.
Restraints on available credit might hinder a firm's ability to enter new sectors. Cash flow is
an important metric, and should be evaluated to determine if a firm can easily fund its
expansion initiatives, as well as pay down debt and repurchase shares.

Limitations
There are severe limitations on the side of analysis of financial statements which makes them
ineffective at times. Past financial performance, good or bad, is not necessarily an accurate
predictor of future performance. Financial statements do not tell you about changes in senior
management. Financial statements do not tell you about the loss of major customers.
Financial statements do not tell you about the competitive environment in which the company
operates. Financial statements do not disclose the companys future prospects, or the results
of its expenditures on Research and Development, or new product introductions, or new
marketing campaigns, or new pricing strategies, or the customers recent decision to enter or
exit a particular market segment. The more out-of-date a customers financial statements are,
the less reliable they are as a risk management tool. Without reading the Notes to the
financial statements, credit managers cannot get a clear idea of the risk they are evaluating.
Unaudited statements may or may not follow Generally Accepted Accounting Principles, and
if they do not follow GAAP relying on them could be a serious mistake. Financial statements
can be altered legally by adjusting certain types of reserves. Financial results can be
improved by reducing or eliminating discretionary expenditures - even if this cost cutting is at
the expense of long term growth and profits.

Foreign financial statements do not follow GAAP. In some cases, local accounting rules are
so different from GAAP accounting rules that it is easy to make the wrong decision after
reviewing the foreign financial data. Unaudited statements may be inaccurate, misleading, or
even deliberately fraudulent - and if they seem too good be true, they may be just that. To see
the big picture, it is necessary to have at least two consecutive periods of financial statements
for comparison. Trends will only become apparent this way. The corollary is that it is not

22

enough to know a customers financial weaknesses. It is also important to know whether the
customers financial performance is weak but improving or weak and deteriorating.
Audited statements do not guarantee accuracy. Even audited financial statements are subject
to a degree of manipulation. Off balance sheet financing is lawful, but can have a devastating
effect on a customers financial health. The fact that a company is publicly traded and its
financial statements are readily available does not guarantee that the company in question is
financially stable and creditworthy.

Conclusion
The Entertainment Industry can change rapidly. Thus, the ability to identify desirable content,
foresee trends, capitalize on expansion opportunities requires a good deal of managerial skill.
A focus on growth markets, such as online content, generally adds to a company's long-term
appeal. By the same token, investors should be wary of those with large holdings in declining
sectors. Additional investment attributes include a healthy return on capital and solid cash
flows. And, from time to time, some companies may be viewed as attractive in light of nearterm catalysts, such as well-received movies. Finally, some entertainment equities, primarily
those of broadcast television station owners, often offer attractive dividend yields. Large-cap
stocks with high marks for Price Stability can also be found in this industry.

23

APPENDIX
1. INDUSTRY AVERAGE DATA
BALANCE SHEET
A. TREND ANALYSIS

Mar'14

Mar'13 Mar'12 Mar'11 Mar'10 Mar'14 Mar'13 Mar'12 Mar'11 Mar'10

Total Share
Capital

2602.84

3733.48 4210.92 3639.82 3037.58 85.69 122.91

Equity Share
Capital

NA

NA

NA

NA

NA

NA

Share
Application
Money

NA

NA

NA

NA

NA

Preference
Share Capital

NA

NA

NA

NA

NA

Reserves

138.63

119.83

100

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

150.1

132.43

100

21024.12 16413.19 20151.23 17778.38 13425.02 156.6 122.26

Revaluation
Reserves

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

networth

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

100

125.06

100

Secured Loans

8113.63

9261.99 6889.76 6452.84 5159.63 117.76 134.43

Unsecured
Loans

1658.72

3388.29 27777.59 3519.55

30.43

62.17

50.96

64.57

100

Total Debt

9772.35

12650.28 9667.35 9972.39 10610.03 92.1

119.23

91.12

93.99

100

Total Liabilities 34185.42 33885.08 34797.32 32706.54 27176.04 125.79 124.69

128.04

120.35

100

Gross Block

22073.96 21930.19 20300.1 16934.93 13857.1 159.3 158.26

146.5

122.21

100

Less Acum
Depriciation

10211.92

9525.93 8067.36 6471.18 4913.66 207.83 193.87

164.18

131.7

100

Ne Block

11860.14 12402.36 12215.32 10446.33 8943.44 132.61 138.68

136.58

116.8

100

24

5450.4

CapitalWork in
progress

1860.18

4861.13 1907.36 2203.91

Investments

11546.94

Inventories

96.3

111.27

100

9848.43 11796.62 12640.83 10456.91 110.42 94.18

112.81

120.88

100

1811.08

2874.36 3292.77

1753.51 103.28 163.92

187.78

110.16

100

Sundry Debtors

4431.56

5019.21 6131.22 5411.49 4725.53 93.68 106.21

129.75

114.52

100

Cash and Bank

Balance

2854.75

2652.22 4206.4

172.1

176.9

100

total Current
Assets

12137.91 13644.91 18589.72 18940.34 16008.9 75.82

85.23

116.12

118.31

100

Loans and
Advances

3030.54

43.74

69.99

102.65

100

NA

NA

NA

NA

72.5

101.97

113.51

100

93.09

112.1

111.2

100

116

134.32

100

Fixed deposits

NA

1931.7

4323.4

1980.6

93.92 245.44

2443.93 116.81 108.52

3099.15 4959.67 7273.75 7085.92 42.91

NA

NA

NA

NA

NA

Total CA Loans
15178.45 16744.06 23549.39 26214.09 23094.82 65.72
& Advances
Deferred Credit
Current
Liabilities

6950.03

8505.09 10242.08 10160.27 9136.86 76.07

Provisions

1494.28

1345.76 1429.57

total Cl
&Provisions

8444.81

9850.85 11671.65 11401.77 10061.14 83.93

97.91

116.01

113.32

100

Net Current
Assets

3693.11

3794.04 6918.06 7538.57 5947.76 62.09

63.79

116.31

126.75

100

0.02

1.75

89.66

100

128.04

120.35

100

Misc. Expenses
Total Assets

0.01

0.86

924.28

44.03

161.67

49.11

145.6 154.67

34185.45 33885.04 34797.32 32706.53 27176.05 125.79 124.69

Contingent
Liabilities

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

Book Value

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

25

B. HORIZONTAL ANALYSIS

26

C. VERTICAL ANALYSIS

PROFIT & LOSS SHEET

27

A. TREND ANALYSIS

28

B. HORIZONTAL ANALYSIS

29

C. VERTICAL ANALYSIS

RATIO ANALYSIS
30

2. UTV BALANCE SHEET31

A. TREND ANALYSIS

B.UTV HORIZONTAL ANALYSIS

32

C.UTV VERTICAL ANALYSIS

33

D.UTV P&L-TREND ANALYSIS

34

E.UTV HORIZONTAL ANALYSIS

35

F. UTV VERTICAL ANALYSIS

36

G.UTV RATIO ANALYSIS

37

3.TV18-BALANCE SHEET
38

A. TREND ANALYSIS

B.TV18_BS_HORIZONTAL & VERTICAL ANALYSIS

39

C.TV18-P&L TREND ANALYSIS

40

D.TV18-PL_HORIZONTAL & VERTICAL ANALYSIS

41

E.TV18_RATIO ANALYSIS
42

3. ZEE BAL SHEET

43

A. TREND ANALYSIS

44

B.BALANCE SHEET HORIZONTAL & VERTICAL ANALYSIS

45

C.ZEE P&L TREND ANALYSIS

46

D.ZEE P&L HORIZONTAL & VERTICAL ANALYSIS

47

E.ZEE RATIO ANALYSIS

48

4.PVR
A.BALANCE SHEET TREND ANALYSIS

49

B.PVR BALANCE SHEET HORIZONTAL & VERTICAL ANALYSIS

50

C.PVR_P&L_Trend Analysis

51

D.PVR P&L HORIZONTAL & VERTICAL ANALYSIS

52

E.RATIO ANALYSIS

53

REFERENCES
1. http://www.livemint.com/Consumer/JpFdfgQQx808C7vC4RH7PI/TV18-Grouprestructures-operations.html
2. http://www. moneycontrol.com
3. Financial accounting, R Narayanaswamy, PrenticeHall India
4. http://www.valueline.com/Stocks/Industry_Report
5. Capital Line Magazine
6. WIKIPEDIA

54