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Zee Marathi, , , Zee Bangla , Zee Talkies, Zee Salaam Zee , Zee Q est: Zee TV, , Zee Anmol, Zindagi, &tv Zee TV, nate Lifestyle: Zee Cinema, Zee Action, Zee Classic, &pictures TEN Sports, TEN Cricket, TEN Action, TEN Golf TEN Sports, TEN Cricket, TEN Action, TEN Zing, ETC Zee TV HD, Zee Cinema HD, Zee Studio HD, TEN HD, &pictures HD, &tv HD HD, TEN HD, &pictures Zee TV HD, Zee Cinema HD, Zee Studio Religious and Alter Niche and Special Inter HD: Hindi Entertainment: Hindi Movies: style: English Entertainment, Movies and Life Regional Language Entertainment: Music: Sports: Cinema, Zee Telegu, , Cinema, Zee Telegu,

v. vi. vii. viii. ix. ­­OVERVIEW NSE Code: ZEEL.EQ) is Limited (ZEE) (BSE Code: 505537, Zee Entertainment Enterprises The Company company. vertically integrated media and entertainment largest one of ’s a satellite channel in India ZEE was the first private company to launch was formed in 1982. multiple channels for a single geography today operates being a single channel and from programming The Company’s and genres. languages in different multiple geographies across 169 countries globally. viewers across out to over 959 million reaches in the Indian market, includes: genres various across ZEE channel portfolio, i. ii. iii. iv. Apart from the channels listed above which are available in India, the Company also available in India, the channels listed above which are Apart from 36 dedicated channels in the international markets. broadcasts INDUSTRY MEDIA AND ENTERTAINMENT in 2014. The The Indian Media and Entertainment Industry witnessed a moderate growth rate a growth ` 918 billion in 2013 to ` 1,026 billion in 2014, registering from industry grew ` 475 billion in 2014, registering ` 417 billion in 2013 to from sector grew of 12%. Television FICCI-KPMG Indian Media and Entertainment Industry Report of 14%. (Source: a growth 2015) media was ` 414 billion in 2014 contributing to 40% of Media advertising spend across Total advertising In light of the continued economic growth, & Entertainment industry revenues. due to monetization of 14% in 2014. On account of improving saw a growth revenues 16%. (Source: rate at annualized growth grew digitization, in 2014, subscription revenues FICCI-KPMG Indian Media and Entertainment Industry Report 2015) the It was another landmark year for the television industry in many ways. FY15 saw Council Audience Research system by Broadcast formation of the viewership measurement relevant (BARC). BARC is expected to deliver superior viewership data on account of more viewership classification parameters (NCCS instead of SEC), tracking of substantially higher of data universe (~150 Mn Households) including rural households, as well as higher quality audio watermarking of channel feeds monitoring through

417

475 billion in 2014,

billion in 2013 to Television sector Television ` from grew ` a growth registering of 14%. investing in tomorrow in investing

management discussion management and analysis and

104 countries across which Annual Report2014-15 32.3% 169 channel share of 18.6% channel share of18.6% with an average weekly with anaverageweekly in the Hindi GEC genre in theHindiGECgenre making it the leader in making ittheleader in Average weeklyshare of the Cinema cluster of theCinemacluster hold the second spot hold thesecondspot Zee TV continued to Zee TVcontinuedto amongst the top amongst thetop the movie genre the movie genre ZEE servescontent 6 GECs. in HSM. HSM. in

shows andlive mega eventslikeMissWorld 2014,Victoria’s Secret FashionShowetc. Zee Cards, The Mentalistetc.Duringtheyear, thechannelshowcased popularinternational series programming ofAmerica’s leading TVshowslikeTheBig BangTheory, Houseof of theleadingplayersinEnglish GECcategoryandhasthetelecastrightstolatest Zee CaféandStudioare thecompany’s English languageofferings. ZeeCafé isone leader inthenon-cricketgenre witha57%viewershipshare inFY2015. such asUEFA ChampionsLeague,WWE,USOpen,Tour deFranceetc,TENisaclear ensure coverageofcricketalltestplayingcountries,alongwithrightstoexcitingproperties telecast rightsto5ofthe10cricketboards, which Sports, TENGolfandHD.With The Company’s sportsofferings include5channelsviz.TENCricket, Action,TEN average weeklychannelshare of32.3%amongstallHindiMovieCluster. The Cinemaclustercontinuedtohavealeadingshare inthemoviegenre inHSMwithan premiere in2014HSMCS4+. on &pictures. World TVPremiere of“Entertainment” onZeeCinemawasthehighestrated premiered onZeeCinemawhileLunchbox,ManjunathandMadAboutDancewaspremiered year popularmovieslikeEntertainment,Holiday, MainTera Hero andRajaNatwarlalwere its moviechannelsare astrong favoritewiththeviewersaswelladvertisers.During Cinema HD,&pictures and&pictures HD.ZEEhasthelargestfilmlibraryincountryand In theHindiMovieGenre, ZEEhas 6channelsviz.ZeeCinema,Action,Classic, space. 2015. &tvlaunchedwith90,612GVTs makingitthebiggesteverlaunchinHindiGEC &tv, aHindiGECaimedattargetingthecontemporarymindsetwaslaunchedon2ndMarch, while dismissingthestereotypical notions aboutpeoplefrom othernations. ‘Jodein DiloKo’,Zindagiisachannelthatbelievesinconnectingpeopleofdifferent cultures Zindagi, apremium HindiGECchannel waslaunchedonJune23rd, 2014.Positionedas GECs aimedattargetingaudienceswithadiverseandcontemporarymindset. In linewithourstrategyofexploringnewopportunities,welaunchedZindagiand&tv, Hindi be theNo.1showin8pmslot. and wastheslotleaderinfictiondramaspaceat8:30pmslot.JodhaAkbarcontinuedto show inHindiGECspaceforlongperiods.JamaiRajawasalsolaunchedduringtheyear ,launchedduringtheyearreceived tremendous successandwastheNo.1 During theyear, the channellaunchedvariousnewsuccessfulshowsindifferent genres. channel share of18.6%amongstthetop6GECs. Zee TVcontinuedtoholdthesecondspotinHindiGECgenre withanaverageweekly including Zeehasfurtherintensifiedcompetitivenature oftheindustry. extremely dynamicchannelrankings.Newlaunchesfrom various broadcasters GEC spacecontinuedtoseesustainedcompetitionbetweenthetopsixchannelswith In theHindiGECgenre, ZeeTVistheflagshipproduct from ZEE.Duringtheyear, theHindi Leadership across different Genres: dedicated channelsservingIndiancontentacross 169countries. broadcaster across thecountry. marketswith36 ZEEisalsothepioneerininternational 33 domesticchannelsthatservethewidestarrayofcontentinIndiaandisleading and contentdevelopment,production anditsdeliveryviasatellite.TheCompanyhas ZEE isanintegratedmediaandentertainmentcompanyengagedprimarilyinbroadcasting BUSINESS PROFILE management discussionandanalysis statutory reportsstatutory

105 ong player in the Bangla GEC space with 35% market ong player in the Bangla GEC space with nered a 14% market share in the market and has added a 14% market share nered eased its market share to more than 50% during the year and than 50% during the year and to more eased its market share share. Zee Bangla performed extremely well in the non-fiction genre, driven by shows genre, well in the non-fiction Bangla performed extremely Zee share. Ma Pa. like Dadagiri Unlimited – 5 and Sa Re Ga in the weekday Primetime band GEC space. The channel held the No.2 position fiction shows like Mudda Mandaram, between 1830-2230hrs on the back of popular the highest launch of Rama Seetha received Rama Seetha, and Mooga Manasulu. The viewership for any new launch. Super shows like Srirastu Subhamastu and Jothe Jotheyali in fiction and shows like Life in the non-fiction formats. Guru and Maharshi Vani the channel include Solvathellam Unmai and CID. maintained its leadership position throughout the year. True to its brand value, Zee True the year. maintained its leadership position throughout Ka Re like , and appealing shows to the audiences fresh Marathi brought block Dya, and Ase He Kanyadan. The channel premiered Durava, Chala Hawa Yeu on Marathi television in TV premiere World buster movie “Lai Bhaari”, the highest rated last 5 years. Zee Bangla continued to be a str Zee T Zee Kannada gar Zee T Zee Marathi incr of23%hasbecomeacloseno.3playerintheTelugu elugu, withamarketshare ratedshowson GECs.Top intheNo.3positionamongallTamil amil remained

Studio on the other hand is an English movie channel that shows all the latest blockbusters is an English movie channel that shows Studio on the other hand its audience to entertain effort In FY15, Zee Studio in a continuous to the Hollywood loyalist. was showcased with the new identity “See it All”. Zee Studio’s launched its new ideology, etc. Both Avengers Impossible: Ghost Protocol, of movies like Mission channel premiere the network subscription bouquet. to strengthen these channels continue oriented showcases popular Bollywood of the Company, lifestyle offering Zing, the music and world of music, lifestyle, movies and the around revolves The content on Zing properties. on fictional Kya Kiya, an original show based Pyar Tune Zing introduced celebrities. In FY15, Zing to the popular with the youth and has propelled love stories. This show is extremely youth genre. leadership position in the 7 pm slot in the Zee Kannada Zee Bangla, , , Zee Marathi, Zee Talkies, in their market share and enjoy significant language offerings regional are and Zee Tamil markets. respective Further strengthening the performance of our niche/ special interest genre, two shows, genre, the performance of our niche/ special interest Further strengthening nominated our edutainment channel , ZeeQ, were and “Engineer This”, from “Teenovation” was even nominated for the National Science “Teenovation” Awards. for the Indian Television at the Festival of Innovation at The Rashtrapathi Bhavan in festival and was also screened New Delhi. The Zee Khana Khazana is the No. 1 food & lifestyle channel with 34% market share. exciting content with 9 new shows like ABC- legacy of offering channel continued its strong Bake do teen etc. Zee Khane Bhi Do Yaron, All ‘bout cooking’, Snack Attack: Firangi Twist, for “Best Radio Khana Khazana was also the only media channel to win the Gold Award Kaan Awards. Spot” at the 11th Mirchi Global Presence worldwide. 169 countries than 959 million viewers across more The Company reaches and international for any broadcaster subscription is a key driver of revenues Internationally, revenues in this total subscription contributed significantly to ZEE’s subscription revenues financial year. leadership. Zee Marathi’s market Zee Marathi’s share during the yearshare 50% + 50% helping it retain markethelping it retain investing in tomorrow in investing management discussion and analysis and discussion management

106 Annual Report2014-15 the SAchannels. viewership within intermsof & position inUS, its dominant Zee TVcontinues The keyelementsofZEE’s strategyduringtheyearwere BUSINESS STRATEGY (iii) (ii) (i) (v) (iv) (iii) (ii) (i) Key highlightsduringtheyearinclude: its dominanceinthegeographieswhere itoperates. SA channels.Duringtheyear, theCompanyundertookvariousinitiativestofurtherstrengthen continues itsdominantpositioninUS,MiddleEast&Africatermsofviewershipwithinthe SouthAsian(SA)Businessglobally.Zee NetworkdominatestheInternational ZeeTV amil andZeeKhanaKhazanawere launchedintheIndianOceanIslands. orld, ourfirstdubbedEnglishGECwithIndiancontentformainstream African

Zee AflamconsolidateditspositionasthetopBollywoodchannelcateringtoArabic Zee TVlaunchedParwaaz,adramaseriesthatwasentir Zee TVcontinuedtobetheNumber1SouthAsianchannelbothintermsofGRPsand Zee T Zee CinemaInter Zee W &TV waslaunchedintheUKmarket Zee celebrated20yearsofitspr In US,Zeechannelswer Zee NungwaslaunchedinThailandwhichisa24/7Bollywoodmoviechannellocalized ZEE launchedaGEC,ZeeHiburan,inIndonesia,whichisfullydubbedandsubtitled Zee Alwancontinuestogr audiences. show broke allviewership records intheUAEamongsouthAsians. Reach intheUAE. viewers waslaunchedinAfrica control ondistribution spends. maintaining itscost structures through betternegotiations withsuppliersandbetter result insustained incremental viewership.Thenetwork continuestoendeavortowards revenues inthefuture. Phase IVcitiesisseenasapositive stepthatshouldleadtoaboostinthesubscription the digitizationprocess inPhaseIandIIcitiestherollout inPhaseIIIand exhibited through therampantexpansionofdigitizedhouseholds.Thecompletion helped ensure thatinahighlyfragmentedenvironment, thenetworkgrew itsdominance. channels alongwiththetieupofcricketrightsandothermajor sportingeventshas share through aplannedcontentlineup.Thelaunchofnewshowsacross network environment: environment and packagedinThailanguage. Bahasa language. Qubool andRihletSaloniS3(SaathPhere -Season3). The beliefattheCompanyhas alwaysbeenthathigherspendsmaynotnecessarily Rationalize oncostsacr India isafastdigitizingmarketandtheconsumershifttowar Concentrate onadditionalr In FY2015,ZEElaunchedtwoHindiGECs-Zindagiand&tv Invest ingr Maintain consistentlyhighstandar Fortify itsexpansionintheinter Rationalize oncostsacr to concentrateonadditionalr to investingr owth opportunitiestosafeguard businessleadershipinacompetitive owth opportunitiestosafeguard business leadershipinacompetitive national waslaunchedinAfrica. oss different heads e addedontoadditionalplatformslikeCharter oss different heads ow itsreach inthemarketwithshows likeJodhaAkbar, evenues from digitization: evenues from digitization national markets esence inUKandEurope market ds ofcorporategovernance management discussionandanalysis ely produced intheUAE.This , tofurtherenhancemarket ds digitalservicesis statutory reportsstatutory

107 nance is critical to sustaining corporate development, nance is critical to sustaining national markets: nance: , the Company undertook various initiatives to further strengthen its various initiatives to further strengthen , the Company undertook Fortify its expansion in the inter Fortify its expansion During the year Corporate Gover good gover ZEE firmly believes that dominance in international with new platform operators markets by entering into deals In line with this new channels in some of the geographies. as well as launching in Zee Nung and Zee Hiburan launched , the company expansion strategy, various geographies. wealth. The shareholder and competitiveness and creating productivity increasing utilized in a manner are that the available resources should ensure governance process essential charter The Company’s that meets the aspirations of all of its stakeholders. The and accountability. professionalism is shaped by the objectives of transparency, on these aspects on an ongoing basis. Company continuously endeavors to improve been have standards and accountability, emphasis on transparency While the increasing as well as judiciousness in conduct, ZEE set by various governing bodies on disclosure direction. has always tried to go a step further in this

(iv) (v) RISK FACTORS other players Competition from that is subject to innovations, environment The Company operates in highly competitive in each segment of available to each player changes and varying levels of resources business. in Media sector Ever changing trends tastes vary changing audience tastes. People’s It may not be possible to consistently predict In this makes it is virtually they live in. and environment quite rapidly along with the trends whether a particular show or serial would do well or not. Withimpossible to predict the kind would have an adverse impact on the failures repeated of investments made in ventures, bottom line of the Company. its bottom line mix might affect Cost of programming the best content to viewers, ZEE would have to incur high The urge to compete and provide time to time. The increase from front an impetus on its programming to provide expenditure in the same proportion. in costs might not necessarily perk up its revenues Investments in new channels time to time launch new channels like we did with Zindagi and &tv The Company may from The success of any or acquired. created freshly Content for these channels is either this year. price, extent new channel depends on various factors, including the quality of programming, can be no assurance that the Company will be as of marketing, competition etc. There successful in launching new channels as it has been the case of its existing channels. environment Macroeconomic along growth, of risk. Moderating can be a potential source environment Macroeconomic which forms revenues of the Company, with high inflation, can adversely impact advertising revenues. the largest component of the Company’s Slowdown in DTH/Digital rollout for all The uptake of pay digital services by subscribers has been a very encouraging sign their revenues of share derive a greater Internationally most broadcasters broadcasters. cable in the analogue in India the under-declaration whereas the subscription revenues from which tend dependent on advertising revenues, being more system has led to broadcasters of economic factors. The rollout by the macro affected and more to be cyclical in nature investing in tomorrow in investing management discussion and analysis and discussion management

108 pioneer across Europe andUSA. Annual Report2014-15 ZEE has been a pioneer ZEE hasbeenapioneer amongst all South East amongst allSouthEast highest market share highest marketshare markets and has the markets andhasthe Asian broadcasters Asian broadcasters in the international in theinternational and expenses. Indian Rupee;theCompany’s reporting currency, whichmayhaveanimpactonitsrevenues Company isexposedtofluctuationsintheexchangeratesbetweenthosecurrencies andthe its expensesinforeign currencies, particularlyUSDollarsandUKPounds.Accordingly, the The Companyreceives asignificant portionofits revenues andincursasignificantportionof The Companymaybeexposedtoforeign exchangeratefluctuations of theCompany. properties, anyfuture contractsmaybeathighercosts,whichputpressure onmargins While asignificantamountofrightshavebeensignedonbytheCompanyforleadingsports Increase incostofacquisition forsomeofthekeysportsproperties markets maygetaffected. consumers mayfinditdifficult toupgradetheirpackagesandthevalue growth from these Company willretain marketshare inkeygeographies.Giventheglobal economicslowdown, with distributionplatformsinthesemarketsgivingmanagementtheconfidencethat these marketsservesthepreference ofanicheaudienceandZEE hasstrong relations amongst allSouthEastAsianbroadcasters across Europe andUSA.Indiancontentin marketsandhasthehighestmarketshareZEE hasbeenapioneerintheinternational markets Sluggish consumeruptakeintheinternational new competitionintheHindiGECspacecanhaveanimpactonCompany’s revenues. lucrative toalltheTVbroadcasters. EventhoughwelaunchedZindagiand&tvthisyear, any The HindiGECgenre isamongstthekeygenres foralladvertisers andhenceismost Increased competitiveenvironment intheHindiGeneral EntertainmentSpace revenues from PhaseIIIandIVcitiesastheirrollouts maynotbecompletedontime. Phase IandIIcitiestooklongerthanexpected.Similarly, itmaytakelongertorealize management discussionandanalysis statutory reportsstatutory

109 36,535 32,602 Amount 26,848 23,329 2010 -11 2011 -12 2012 -13 2013 - 14 2014 -15 22,310 TS OF OPERATIONS – RESUL

5,000 30,000 20,000 10,000 40,000 35,000 25,000 15,000 Revenue from Operations Revenue from ` 30,757 million in FY 2014 by ` 3,505 million or 11% from Operating Revenue increased of income, the advertisement revenue to ` 34,262 million in FY 2015. Among major sources by 11% to ` 22,284 million in FY 2015 as against ` 20,037 million in FY has increased ` 8,705 of 9% by ` 745 million from a growth has recorded 2014 and Subscription revenue of DTH and Cable million in FY 2014 to ` 9,450 million in FY 2015 due to continuous growth Subscribers. & Other Income Interest ` 1,845 million in FY 2014 by ` 428 million i.e. 23% from & Other income increased Interest in interest is attributable mainly to increase to ` 2,273 million in FY 2015. The increase by income by ` 310 million, liabilities written back by ` 192 million which is partially offset exchange fluctuation by ` 99 in dividend income by ` 75 million and gain from decrease million. Expenditure Total ` 20,442 million in by ` 3,373 million or 17% from increased Operational expenditure Total as in FY 2015, 65% of total revenue FY 2014 to ` 23,815 million in FY 2015. It represents to 63% in FY 2014. compared STAND-ALONE FINANCIALS STAND-ALONE A. to the 2015 compared Ended 31 March, Information for the Year Non-Consolidated Financial 2014. Ended 31 March, Year Revenue Total 2014 to ` 32,602 million in FY from by ` 3,933 million or 12% increased revenue Total Revenue. in Broadcasting 2015 driven by increase ` 36,535 million in FY over last 5 years. revenue Following chart depicts the movement of Revenue Total (` Millions)

increase inincrease Total revenue in revenue Total by 12% driven byby 12% driven FY 2015 increased 3,933 mn 3,933 Broadcasting Revenue Broadcasting ` investing in tomorrow in investing management discussion and analysis and discussion management

110 Annual Report2014-15 ` to Finance cost reduced Finance costreduced FY 2014, a reduction FY 2014,areduction 18 mn ` 18 mn in FY 2015 18mninFY2015 from of ` 72 mn in 72 mnin ` 54 mn

Companies Act,2013aswell depreciation onadditionsduringthe year. in depreciation ismainlyonaccountofchangeinusefullife ofassetsasrequired bythe Depreciation increased by`242millionor72%,from `338millionto ` 580million.Increase Depreciation andAmortisation FY 2014. Finance costhasreduced by`54millionto18inFY2015from `72millionin Finance Cost in operationalcostsby`397millionandincrease inpersonnelandotherexpenses. Operating profit ismainlyduetoincrease inbroadcasting revenue partiallyoffset byincrease ` 10,448millioninFY2015.Theoperatingmarginisat30%for FY2015.Increase in Operating profit increased by`133million,or1%,from `10,315millioninFY2014to Operating Profit and marketingcostpartiallyoffset bydecrease indistributioncost. million. Theincrease inotherexpenses ismainlyonaccountofhigherspendadvertising Other expenseshasincreased by`2,388millionor47%from ` 5,113millionto7,501 Other expenses ` 2,816millioninFY2015. Personnel costhasincreased by `588millioni.e.26%from `2,228millioninFY2014to Personnel Cost million inprevious year. Company impaired program andfilmrightsof`641millionduringtheyear, asagainst`447 account ofbigsportingeventsduringtheyearandlaunchtwonewchannels.Further, the ` 13,498millioninFY2015.Increase inoperatingcostisduetohigherprogramming coston Operational costincreased by`397millionor3%,from ` 13,101millioninFY2014to Operational Cost/ofGoods (` Millions) Total Expenditure Following chartdepictsthemovementoftotaloperatingexpenditure overlast5years: 15,000 25,000 30,000 10,000 20,000 5,000 – 13,864 00-121 1 02-321 42014-15 2013-14 2012-13 2011-12 2010 -11 15,771 17,036 Amount management discussionandanalysis 20,442 statutory reportsstatutory 23,815

111 ` 1,085 million mainly FINANCIAL POSITION

Profit Before Tax Before Profit 2014 to ` 11,750 million in FY by ` 372 million or 3% from tax increased before Profit in resulting in revenue is attributable to increase 2015. The increase ` 12,122 million in FY operations. from profits improved for Taxation Provision at ` 3,804 million. for taxation was Net provision Tax for the Period After Profit ` 7,723 million. by ` 595 million to ` 8,318 million from tax for the year increased after Profit B. 2014. to 31 March, 2015 as compared 31 March, Non-Consolidated Financial Position as on of Funds Sources Reserves & Surplus Capital, Share The Paid-up Equity Capital of the Company. change in the Paid-up Equity Share is no There ` 960 million. 2015 stands to of the Company as at 31 March, Capital Share . 1 each, to of ` shares the Company has issued 22 million preference During the year, of Diligent Media Corporation Limited as per Scheme of Arrangement. the shareholders capital stand at ` 20,192 million. share the paid-up preference Consequently, Loan Funds ` 16 million. These at ` 12 million down from 2015 stood loan funds as on 31 March, Total to vehicle loan taken by the Company. related loan funds are Long term liabilities and provisions ` 275 millions as benefits have gone up from pertaining to retirement Long term provisions 2015. 2014 to ` 394 million as on 31 March, on 31 March, Liabilities and Provisions Current Payables, Statutory Dues, Trade mainly representing Liabilities and Provisions Current by ` 2,505 and other payables etc. The same has increased provisions Unearned revenue, 2014. ` 7,197 million as on 31 March, 2015 from million to ` 9,702 million as on 31 March, in trade payables by ` 481 millions, other is mainly attributable to increase The increase by by ` 110 million which is partially offset payables by ` 807 million and cheques overdrawn customers by ` 163 million. from in advance received reduction Application of Funds Fixed Assets by Fixed Assets block increased Gross the Company’s During the year, on account of purchase of plant and machinery and Capitalisation of expenditure incurred incurred of plant and machinery and Capitalisation of expenditure on account of purchase is mainly on development of new television channels as Intangibles. The capital expenditure funded out of internal accruals. by ` 203 million due to impairment and disposal of block has reduced Gross During the year, block (net book Gross ` 143 million from various obsolete assets which include assets retired value of ` 53 million). 2015. by ` 118 million to ` 879 million as on 31 March, reduced in Progress Capital Work

Profit before tax in FY before Profit 2015, a growth of 3% of 2015, a growth investing in tomorrow in investing 12,122 mn 12,122 ` management discussion and analysis and discussion management

112 Annual Report2014-15 million. inventories by` to increase in mainly attributable ` ` ` current assetsby The increase in 38,739 million is 38,739millionis 28,835millionto 9,904millionfrom 869 869

in current assetsby` & BankBalances,ShorttermloansandadvancesOtherCurrent Assets.Theincrease Current Assetsmainlyrepresent current investment,Inventories,Trade Receivables,Cash Current Assets of paymentadvancetax`2,192millionpartiallyoffset byreduction inloantosubsidiary. 31 March, 2014to`6,571millionason31March, 2015.Theincrease ismainly onaccount The increase of`114millioninthelongtermloansandadvancesfrom `6,457millionason Long termloansandadvances ` 6,593Millionason31March, 2015. Non-current Investmentshavereduced from `8,080millionason31March, 2014to Non-Current Investments subsidiaries. to `516millionon31March, 2015mainlyonaccountofreduction inotherreceivables from Other current assetshavereduced by`580millionfrom `1,096millionon31March, 2014 Other current assets ` 4,911millionon31March, 2014to`10,327millionon31March, 2015. There wasanincrease of`5,416millionincurrent portionof loansandadvancesfrom Loans andAdvances(Current) million asagainst`1,646on31March, 2014. The cashandbankbalanceslyingwiththeCompany, ason31March, 2015was`3,012 Cash andBankBalances in FY2015asagainst95daysofsales2014. FY 2015asagainst` Trade receivables netoff provision forbadanddoubtfuldebtsstoodat` Trade Receivables million ason31March, 2014to ` 12,071millionason31March, 2015. Programs andFilmrightsheld bytheCompanyincreased by`869millionfrom `11,202 Inventories from `2,000millionason31March, 2014. Current Investmenthasincreased by`2,495millionto4,495ason31March, 2015 Current Investment ` attributable toincrease ininventoriesby` ` 1,366million. 5,416million,current investmentby` 7,980millioninFY2014.TheageofNetDebtorsis89dayssales 9,904millionfrom ` 2,495millionandcash&equivalentby 869million,Shorttermloansandadvancesby 28,835millionto` management discussionandanalysis 38,739millionismainly statutory reportsstatutory 8,318millionin

113 51,115 46,024 Amount 38,457 31,789 30,970 2010 -11 2011 -12 2012 -13 2013 - 14 2014 -15 TS OF OPERATIONS RESUL

60,000 50,000 40,000 30,000 20,000 10,000 Total Revenue Total (` Millions) Revenue from Operations Revenue from ` 44,217 million in FY 2014 to by ` 4,620 million or 10% from increased Operating revenue ` 48,837 million in FY 2015. of ` 2,802 million i.e. 12% to was witnessed in advertisement revenues Overall growth ` 26,603 million in FY 2015 as against ` 23,801 million in FY 2014. Subscription Revenue ` 18,022 million in FY 2014 to ` 17,935 million in FY 2015. by ` 87 million from has reduced and Film Sales – media content includes Syndication sale of Sports rights, Programs ` 1,730 by ` 2,019 million to ` 3,749 million in FY 2015 from rights which has increased million in FY 2014. Other Income ` 1,807 million in FY 2014 to ` 2,278 by ` 471 million or 26% from Other income increased income by ` 201 in other income is mainly on account of interest million in FY 2015. Increase investment of ` 269 million. on sale of treasury million and profit Expenditure ` 32,174 million to by ` 4,125 million or 13% from increased Operational expenditure Total in cost is attributable to higher content costs as well as the ` 36,299 million. This increase in Administrative & Marketing Spends. increase CONSOLIDATED FINANCIALS CONSOLIDATED A. for FY 2015 and for FY 2014. Audited figures a comparison between have provided We income, expenses, assets and liabilities of share include 50% proportionate Financial results Enterprise India (JV) “Media Pro in Joint Venture interest for Company’s on a line by line basis Private Limited” (MPEIPL). Revenue 2014 to ` 46,024 million in FY from by ` 5,091 million, or 11% increased revenue Total income. higher broadcasting ` 51,115 million in FY 2015 on account of Revenue over last 5 years: Total Following chart depicts the movement of

2,802 million ` Advertisement

revenues grew by grew revenues i.e. 12% in FY 2015 investing in tomorrow in investing 26,603 mn ` management discussion and analysis and discussion management

114 Annual Report2014-15 26% broadcasting revenue. driven by increase in driven byincrease in FY 2014to` million, or 4%, from million, or4%,from increased by` million in FY 2015, million inFY2015, ` 12,043 million in 12,043millionin Operating profit Operating profit operating margin 12,538 12,538 495 495 required bytheCompanies Act,2013aswelldepreciation onadditionsduringtheyear. million inFY2015.Increase ismainlyonaccountofrevised usefullifeoftheassetsas Depreciation increased by`172million,or34%,from `501millioninFY2014to ` 673 Depreciation andAmortisation Finance expensesreduced by`55millionor35%from `158millionto103million. Finance Expenses marketing spendstobuildthebusiness. which ispartiallyoffset byincrease inoperatingcostsi.e.higherinvestmentcontentand operating profit ismainlyattributabletoincrease inbroadcasting revenue duringtheyear ` 12,538millioninFY2015.Theoperatingmarginisat26%for FY2015.Theincrease in Operating profit increased by`495million,or4%,from `12,043millioninFY2014to Operating Profit on advertisingandmarketingcostincurred bytheCompany. in FY2014to`10,408million2015.Theincrease ismainlyonaccountofhigherspend Administrative andOtherexpensesincreased by`2,817millionor37%from` 7,591million Other expenses million inFY2015. Employee costincrease by`603million,or15%,from ` 3,895millioninFY2014to4,498 Employee BenefitExpenses as launchofnewchannels. increase incostonacquisition andamortizationofprogramming andsportscontentaswell 20,688 millioninFY2014.Theoverallincrease inoperationalcostismainlyattributableto Operational costhasincreased by `705millionto21,393inFY2015asagainst Operational Cost/ofGoods (` Millions) Total Expenditure Following chartdepictsthemovementofoperatingexpenditure overlast5years: 15,000 25,000 35,000 40,000 10,000 20,000 30,000 5,000 – 00-121 1 02-321 42014-15 2013-14 2012-13 2011-12 2010 -11 21,868 23,010 27,453 Amount management discussionandanalysis 32,174 statutory reportsstatutory 36,299

115 FINANCIAL POSITION

B. 2014. to 31 March, 2015 as compared March, Consolidated Financial Position as on 31 of Funds Sources Reserves & Surplus Capital, Share capital of the Company. is no change in the equity share there During the year, Non-Cumulative Redeemable Non-Convertible The Company has issued 22,273,886 6% of Diligent Media of `. 1 each fully paid up, to the shareholders shares Preference Corporation Limited, pursuant to the Scheme of Arrangement. Loan Funds to related 2015. These loan funds are loan funds stood at ` 12 million as on 31 March, Total vehicle loan taken by the Company. Long term Provisions ` by ` 145 million from benefits have increased consisting of retirement Long term provisions 2015. 335 million to ` 480 million as on 31 March, liabilities Non Current syndication of content. towards the advance received liabilities represent Non current Liabilities and Provisions Current by ` 1,573 million during the year mainly have increased Liabilities and Provisions Current by dividend by ` 1,352 million partially offset for preference in provision due to increase and Other Payables by ` 292 million. in Trade reduction 2015 is at ` 13,776 million vis-a-vis as on 31 March, liabilities and Provisions Current 2014. ` 12,203 million on 31 March, Profit Before Tax Before Profit 2014 to ` 13,191 million in FY by ` 849 million or 6% from tax increased before Profit 2015. ` 14,040 million in FY for Taxation Provision ` 4,291 from ` 4,285 million in FY 2015 by ` 6 million to for taxation reduced Provision million in FY 2014. of Results of Associates Share Shop and Media Private Limited and Asia Today in Aplab Limited, Idea Web results of Share of is loss of ` 37 million in FY 2015 as against profit Thailand Limited as Associate Company ` 2 million in FY 2014. Minority Interest of loss was year net share on account of current Minority interest Receivable from Limited (26%) and of minorities of Zee Turner ` 57 million in FY 2015. This includes share Private Limited (49%). India Webportal Tax for the year After Net Profit ` 8,921 million. The Net by 10% to ` 9,775 million from tax for the year increased after Profit to FY 2014. remained static at 20% in FY 2015 as compared has margin Profit

in FY 2015 to 9,775 million ` increase in net profit increase 10% investing in tomorrow in investing management discussion and analysis and discussion management

116 Annual Report2014-15 of salesinFY2014. as against85days of salesinFY2015 Debtors is80days The ageofNet 2,024 millionmainlyduetotradeadvancesgiven. 31 March, 2014to`11,576milliononMarch 31,2015.Otheradvancesincreased by` There isanincrease inloansandadvancesby`2,470millionfrom `9,106millionason Short termloans,advancesandothercurrent assets million asagainst`5,644on31March, 2014. The cashandbankbalanceslyingwiththeCompany, ason31March, 2015was`7,365 Cash andBankBalances FY 2014. age ofNetDebtorsis80dayssalesinFY2015asagainst85 FY 2015asagainst` Trade receivables netoff provision forbadanddoubtfuldebtsstoodat` Trade Receivables unamortised filmrightsandprogrammes. on 31March, 2014to`11,878millionon31March, 2015. Theincrease mainlyrepresents Programs, Filmrightsheld bytheCompanyhasmarginallyincreased from `11,736million Inventories Current Assets ` 7,686millionfrom `42,116millioninFY2014to ` 49,802millioninFY2015. There hasbeenanoverall increase incurrent assetswhereby theassetsstandincreased by Current Assets attributable toincrease inadvance taxnetby`2,363million. ` 5,629millioninFY2015asagainst2,8712014.Theincrease ismainly advance taxes,claimreceivables andotherassetshaveincreased by`2,758millionto The longtermloans,advancesandothernoncurrent assetsconsistingofcapitaladvances, Long termloans,advancesandothernon-current assets. 31 March, 2015from `2,941millionmainlyrepresents treasury investments. The decrease of`1,477millioninnoncurrent investmentsto`1,464millionasat Non Current Investments Capital Work inprogress decreased by`119millionto878ason31March, 2015. ` 56million.Thecapitalexpenditure wasmainlyfundedfrom accruals. internal assets duetoimpairment/disposalofvariousobsoleteaggregating tonetbookvalue foreign exchangetranslationofforeign subsidiaryassets.There isapartialreduction in increase ismainlyonaccountofpurchase ofplantandmachinery andotherassetsincluding During theyear, theCompany’s Gross FixedAssetsblockincreased by`1,296million.This Fixed Assets Application ofFunds 10,281millioninFY2014reflecting anincrease of` management discussionandanalysis statutory reportsstatutory 10,692millionin 411million.The

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