Durable. Dependable. Desirable
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Spine to be adjusted by printer INDIA’S ENTERTAINMENT POWERHOUSE Annual Report 2013-14 TELEVISION: SCALING UP BY STRENGTHENING OUR PROGRAMMING LINE-UP MOVIES: LEVERAGING ON SUPERB PACKAGING, EFFECTIVE MARKETING AND SMART FINANCING EXPLORING DIVERSE GENRES AND CONTENT INNOVATION TO DRIVE GROWTH IN VIEWERSHIP Pg. 36 CATERING TO MASS world.com SENSIBILITIES THROUGH C-13, Balaji House, DIFFERENTIATED CONTENT Dalia Industrial Estate, Opposite Laxmi Industrial Estate, dickenson Pg. 44 New Link Road, Andheri (West) www. Mumbai - 400 053. DARING TO BE DIFFERENT THROUGH SHORT-FORMAT SHOWS, PRODUCT dickenson ADVERTISEMENTS AND EVENTS Pg. 48 www.balajitelefi lms.com EXPLORING NEW AVENUES AND PLATFORMS TO DURABLE. OPTIMALLY MONETISE CONTENT Pg. 50 DEPENDABLE. DESIRABLE. Spine to be adjusted by printer COST RATIONALISATION HAS NOW ALMOST BECOME A BIBLE WITHIN THE BALAJI HOUSE. WE ARE DOING EVERYTHING AT ROCK-BOTTOM COSTS. WE CONTINUE TO FOCUS ON OPTIMUM UTILISATION OF OUR PRODUCTION SETS, RESOURCES AND MANPOWER. OUR INFRASTRUCTURE IS BEING UTILISED MUCH BETTER AND WE ARE FULLY IN CONTROL FOR PRODUCTION OF OUR TV SHOWS AND MOVIES. WITH A SUPERIOR BUSINESS MODEL THAT ALLOWS STRADDLING IN BOTH TELEVISION AND FILM REALMS, BALAJI TELEFILMS IS A HIGHLY SUSTAINABLE AND DURABLE BUSINESS. URABLE. EPENDABLE. ESIRABLE. Diamonds are nothing more To start with, Diamonds were Next to a spirit of discernment, than carbon, but carbon in a only lumps of coal that stuck the rarest things in the world crystal lattice that makes it at it no matter how much are diamonds. The deep the hardest known mineral in heat or pressure they faced questions we seek answers nature. Balaji Telefilms Limited millions of years ago. The end to are diamonds one holds in too is just a clever weave result is the creation of a rare the light. If we study them a of ingenuity, creativity and piece of rock that is valuable lifetime, we can see different business acumen, that makes it and alluring forever. Since colours from the same a highly robust entertainment its beginning, Balaji too has jewel. Balaji’s Films business content company that few stuck to its core business of too is based on a spirit of can equal. With a superior producing highly differentiated creativity and cutting edge business model that allows the and trend setting television experimentation, radiating Company to straddle both the content, to the point where it multiple films of varied television and film realms, and has become the undisputed hues, genres and audience with a leadership position in industry leader. With years of sensibilities. Today, this business both, Balaji Telefilms is a highly learning and a forward thinking has matured to strongly place sustainable and DURABLE approach and planning, Balaji’s the Balaji brand in the upper business. Television business is today echelons of the industry. As highly DEPENDABLE, based on an engine fuelling its future a deep pipeline of programming top and bottom lines, on top with each GEC in the business. of an already stable television This bedrock business lends business, the films business the Company to have a highly makes Balaji an even more visible business stream that DESIRABLE company to work allows it the comfort of assured for, to partner with and to own value creation well into the as shareholders. near future. Annual Report 2013-14 1 CONTENTS ABOUT US The Genesis of Balaji Tele lms Limited ...................... 4 Vision & Values ........................................5 Balaji Tele lms Limited... A Ready Reckoner ................................ 6 Corporate Information ...................... 7 At a Glance ............................................... 7 Our Key Strategic Imperatives ...... 8 BUSINESS MANAGEMENT OVERVIEW DISCUSSION & ANALYSIS Chairman’s Letter ................................10 INDUSTRY REVIEW ................................................. 22 Managing Director’s Message ...................................................12 COMPANY OVERVIEW Joint Managing Our Television Business ................................... 28 Director’s Message .............................14 Serials Currently on Air ..............................................................30 Operational Highlights ....................16 Our Business Strategies and Financial Highlights ...........................17 Key Performance Areas in Television .................34 We are preserving what we’ve built Awards & Accolades..........................18 and scaling new heights by strengthening our programming line-up .....................34 Exploring diverse genres and content OUR innovation to drive growth in viewership ....................36 PEOPLE Our Movies Business ............................................. 38 Board of Directors ..............................20 Movies Released in FY2014 ....................................................40 Movies Released in FY2015 ....................................................43 Our Business Strategies and Key Performance Areas in Movies ......................44 Catering to mass sensibilities through differentiated content and a diverse movie slate .....44 We leverage on Superb Packaging, Effective Marketing and Smart Financing to increase our scale.............................46 Expanding the Basket ........................................... 48 Daring to be Different ................................................................48 New Avenues, New Platforms ...............................................50 Human Resources .................................................. 52 Leading Effective Change .......................................................52 Management Outlook ...............................................................54 DIRECTORS’ REPORT .............................................. 56 CORPORATE GOVERNANCE REPORT ..................62 2 Balaji Telefilms Limited WE HAVE ETCHED OUR NAME AS ONE OF THE LEADING ENTERTAINMENT HOUSES IN INDIA AND ARE RECOGNISED AS A MATURE AND SERIOUS FILMS PRODUCTION HOUSE TO RECKON WITH. FINANCIALS Standalone Financials Independent Auditors’ Report .............................................73 Balance Sheet ................................................................................76 Statement of Pro t and Loss ................................................77 Cash Flow Statement ................................................................78 Notes ...................................................................................................80 Consolidated Financials Independent Auditors’ Report .......................................... 101 Balance Sheet .............................................................................102 Statement of Pro t and Loss .............................................103 Cash Flow Statement .............................................................104 Notes ................................................................................................106 Statements Pursuant to Section 212 ............................127 Balaji Motion Pictures Limited Directors’ Report........................................................................128 Independent Auditors’ Report .......................................... 131 Balance Sheet .............................................................................134 Statement of Pro t and Loss .............................................135 Cash Flow Statement .............................................................136 Notes ................................................................................................137 BOLT Media Limited Directors’ Report........................................................................150 Independent Auditors’ Report ..........................................152 Balance Sheet .............................................................................154 Statement of Pro t and Loss .............................................155 Cash Flow Statement .............................................................156 Notes ................................................................................................157 AGM NOTICE ........................................................ 165 Annual Report 2013-14 3 THE OF BALAJI TELEFILMS LIMITED WE ARE A LEADING ENTERTAINMENT CONTENT HOUSE IN INDIA AND AN INTEGRATED PLAYER IN THE MEDIA AND ENTERTAINMENT INDUSTRY. Over the years, we have successfully In the TV business, we have an In the eld of motion pictures, we evolved from being a pure-play undisputed leadership and a strong are on the crest of a steep learning TV content provider, into one that presence in the Hindi and regional curve. Over the last three years, we consistently produces compelling GEC space. Leveraging the rich have established our credentials in content for both the small screen diversity of our audiences across producing niche, clutter-breaking, and the big screen. Recently, we have India, we have demonstrated a edge-of-the-seat content and further strengthened our capabilities pro cient ability in producing high- commercially successful lms. We across these dual delivery platforms by quality content in Hindi, Tamil, Telugu, make content that is spread across embracing the super high de nition Kannada, Malayalam and Bengali multiple genres and budgets. Going and digital platforms. Today, we are entertainment, across multiple forward, our key learnings from last successfully generating a diverse array genres. Our deep pipeline of long three years position us well to build of content that