Sustainable Entertainment For Decades Balaji Telefilms Limited 2020-21 Annual Report ENTERTAINMENT ACTS AS AN ESCAPE FROM TOUGH REALITIES. And our aspiration to move closer to our audiences beckons us to create endearing stories that provide respite from tedious routines. Over the past few decades, we have successfully evoked emotions and left a lasting impact on the minds of the Indian audience. Our ability to grasp the changes in the entertainment industry keeps us poised to explore myriad opportunities. Today, we are not just renowned for the mass-favourite television shows but, have secured a formidable presence in films and the OTT space. With a growing inclination towards digital domains of entertainment, we were quick to comprehend audience preferences. Likewise, we discovered ways to keep our audiences engaged with exciting content. Keeping the Indian audience at the heart of our endeavours, we have explored shows in diverse genres and local languages – fulfilling our promise of delighting audiences, year after year. BALAJI TELEFILMS LIMITED Table oF Content Corporate Statutory Overview01 Reports02 04 Corporate Information 44 Management Discussion & Analysis 06 About Us 55 Board’s Report 08 Business Performance 87 Corporate Governance Report 10 Message from the Promoters 109 Business Responsibility 14 GCFO Message Report 16 GCOO Message 18 Key Metrics 20 Our Value Creation Model 22 Business Segments Overview 32 Awards & Recognition 38 Board of Directors 02 Sustainable Entertainment For Decades Corporate Overview Statutory Reports Financial Statements Financial Statements03 Balaji Telefilms Limited Balaji Motion Pictures Limited Marinating Films Private Limited Standalone Financials 242 Board’s Report 347 Board’s Report 115 Independent Auditor’s Report 253 Independent Auditor’s Report 359 Independent Auditor’s Report 124 Balance Sheet 260 Balance Sheet 366 Balance Sheet 125 Statement of Profit and Loss 261 Statement of Profit and Loss 367 Statement of Profit and Loss 126 Statement of Cash Flows 262 Statement of Cash Flows 368 Statement of Cash Flows 128 Statement of Changes in 263 Statement of Changes in Equity Equity 369 Statement of Changes in Equity 129 Notes 264 Notes 370 Notes Consolidated Financials AGM Notice 177 Independent Auditor’s Report Alt Digital Media Entertainment Limited 388 Notice 184 Balance Sheet 287 Board’s Report 185 Statement of Profit and Loss 303 Independent Auditor’s Report 186 Statement of Cash Flows 310 Balance Sheet 188 Statement of Changes in Equity 311 Statement of Profit and Loss 190 Notes 312 Statement of Cash Flows 314 Statement of Changes in Equity 315 Notes Annual Report 2020-21 03 BALAJI TELEFILMS LIMITED Corporate Information 04 Sustainable Entertainment For Decades Corporate Overview Statutory Reports Financial Statements Board of Directors Group Chief Operating Secretarial Auditors Officer and Chief Mr. Jeetendra Kapoor MMJB & Associates LLP Chairman Executive Officer (ALT (DIN: 00005345) Digital) Registered Office Mrs. Shobha Kapoor Mr. Nachiket Pantvaidya (upto April C-13, Balaji House, Managing Director 30, 2021) Dalia Industrial Estate, (DIN: 00005124) Opp. Laxmi Industrial Estate, Group Chief Executive Ms. Ekta Kapoor New Link Road, Andheri (West), Joint Managing Director Officer Mumbai – 400 053, Maharashtra. (DIN: 00005093) Tel: +91-22-40698000, Mr. Nachiket Pantvaidya Fax: +91-22-40698181/82 Mr. Duraiswamy Gunaseela Rajan (w.e.f. July 19, 2021) E-mail: [email protected] Independent Director Website: www.balajitelefilms.com (DIN: 00303060) Group Chief Operating CIN: L99999MH1994PLC082802 Officer Mr. Arun Kumar Purwar Registrar & Share Independent Director Mr. Zulfiqar Khan (DIN: 00026383) (w.e.f. June 18, 2021) Transfer Agent KFin Technologies Private Limited Mr. Anshuman Thakur Group Chief Financial Non-Executive Director (formerly known as Karvy Fintech (DIN: 03279460) Officer Private Limited) SeleniumTower B, Plot No 31 & 32 Ms. Jyoti Deshpande Mr. Sanjay Dwivedi Gachibowli, Financial District, Non-Executive Director Nanakramguda, Serilingampally, (DIN: 02303283) Senior Management Hyderabad – 500 032, Telangana. Mr. Pradeep Kumar Sarda Mr. Stephen Daniel Tel: +91-0406716 2222, Independent Director Group Head – HR 7961 1000 (DIN: 00021405) Fax: +040-23440674 Ms. Tanushri Das Gupta Toll Free No: 1800 309 4001 Mr. Virendra Babubhai Dalal Executive V.P. Digital E-mail: [email protected] Independent Director Ms. Ruchikaa Kapoor Website: www.kfintech.com (DIN: 00247971) EVP Marketing, Creative & Branding Mr. Devender Kumar Vasal (Motion Pictures) Bankers Independent Director Mr. Vimal Doshi (DIN: 06858991) Head-Distribution (Motion Pictures) Yes Bank Limited Mr. Ramesh Sippy ICICI Bank Limited Mrs. Divya Dixit Non- Executive Director HDFC Bank Limited Senior Vice President-Marketing (DIN: 00652881) Axis Bank Limited (ALT Balaji) Oriental Bank of Commerce Dr. Archana Hingorani Mr. Baljit Chaddha State Bank of India Independent Director Creative Director (ALT Balaji) Central Bank Of India (DIN: 00028037) IndusInd Bank Limited Mr. Jason Kothari Statutory Auditors Additional Director (Non-Executive Independent) Price Waterhouse Chartered (w.e.f. February 11, 2021) Accountants LLP (DIN: 07343314) Annual Report 2020-21 05 BALAJI TELEFILMS LIMITED About Us Balaji Telefilms Limited is a in India and amongst leading the largest content production houses in Asia for production and distribution of entertainment film, television series and over the top platForm content company across all media. 06 Sustainable Entertainment For Decades Corporate Overview Statutory Reports Financial Statements We create content that strikes with the industry partners and chord with the world’s fourth stakeholders, we continue to most spoken language and over build on our strength to deliver 300 million native Hindi speakers, a wholesome entertainment spread across the globe. Our package across different formats. storytelling captures the plurality of emotions that is representative of the multi-cultural dimension of Vision Our brands India and draw consumers from all sections of the society. To consistently In over 26 years of our journey, we provide delightFul have become a household name and innovative and redefining the experience of entertainment through entertainment creativity with responsibility. experiences by Through successful relationships engaging audiences and nurturing talent. Values STORYTELLING We always delight our audience with our content and the way we deliver it to them PASSION We go that extra mile because we love what we do INTEGRITY We are honest and ethical in all our dealings COMPASSION We care about our people, we listen, we take the initiative to understand what each one of us wants and works together as a team. EXCELLENCE We push the bar and never settle for second best Annual Report 2020-21 07 BALAJI TELEFILMS LIMITED Business Performance Revenue from operations (Rs. in lacs) FY 2016-17 40,850 FY 2017-18 41,658 FY 2018-19 44,030 FY 2019-20 57,663 FY 2020-21 31,578 EBIDTA (Rs. in lacs) FY 2016-17 280 FY 2017-18 5,310 FY 2018-19 1,472 FY 2019-20 12,416 FY 2020-21 3,741 EBIDTA Margins (in %) FY 2016-17 1 FY 2017-18 13 FY 2018-19 3 FY 2019-20 22 FY 2020-21 12 PAT (Rs. in lacs) FY 2016-17 2,940 FY 2017-18 1,630 FY 2018-19 2,012 FY 2019-20 5,787 FY 2020-21 2,528 08 Sustainable Entertainment For Decades Corporate Overview Statutory Reports Financial Statements PAT Margin (in %) FY 2016-17 7 FY 2017-18 4 FY 2018-19 5 FY 2019-20 10 FY 2020-21 8 Revenue per hour (Rs.) FY 2016-17 28.9 FY 2017-18 33 FY 2018-19 38 FY 2019-20 37 FY 2020-21 31 Earnings per share (Rs.) FY 2016-17 3.87 FY 2017-18 1.79 FY 2018-19 1.99 FY 2019-20 5.72 FY 2020-21 2.50 Total Assets (Rs. in lacs) FY 2016-17 69,216.97 FY 2017-18 104,266.65 FY 2018-19 109,697.61 FY 2019-20 121,368.71 FY 2020-21 119,182.88 Annual Report 2020-21 09 BALAJI TELEFILMS LIMITED Message from the Promoters Mr. Jeetendra Kapoor Mrs. Shobha Kapoor Ms. Ekta Kapoor Promoter Promoter Promoter The industry exhibited remarkable resilience to overcome obstacles and the Indian media and entertainment industry is expected to be the fastest growing market globally, in terms of consumer and advertising revenue. 10 Sustainable Entertainment For Decades Corporate Overview Statutory Reports Financial Statements Dear shareholders, As we step into another fiscal, and availability of cheaper data TV we are glad to take you through packages, a shift towards digital an insightful discussion on your entertainment platforms was Production and shooting for TV Company’s performance during noticed. As peopled preferred to shows have resumed with new FY20-21. view shows on digital devices, at a SOPs in place. The overall demand time and place of their preference, for content remains strong, even While the Coronavirus pandemic as rates have softened due to the personalised viewing experiences wreaked havoc on world impact on broadcasters’ revenue. predominated consumer behaviour. economies, people grappled with Popular shows such as Kundali an unfathomable crisis. Strict The industry exhibited remarkable Bhagya and Kumkum Bhagya are lockdowns were imposed around resilience to overcome obstacles and running successfully and we expect the world. It not only curtailed the Indian media and entertainment the release of 4-6 more shows in the economic activity considerably, industry is expected to be the fastest year ahead. It is expected to drive restrictions on movement affected growing market globally, in terms of revenue growth despite subdued industries across sectors. The consumer and advertising revenue. pricing pressures. Indian economy too suffered a huge Technological advancements and GDP contraction. To aid economic deepening of internet access will Movies recovery, the government and the continue to influence consumption Reserve Bank of India introduced patterns, with more opportunities Carrying forward the success favourable monetary policies that for innovation and a rapid adoption of Dream Girl, we released two stimulated demand. The successful of modern business models.