Balaji Cover 23.07.03.Qxd
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www.balajitelefilms.com SHAREHOLDER’S COPY NOT FOR SALE Annual Review 2003-2004 INDUSTRYIN The fascinating story of how Balaji Telefilms 18 18 adapts the best industrial practices into a passionately creative environment. Result: differentiated content, enhanced margins and premier industry status 77125689562348 9 7710 64030005 9 Balaji Telefilms Limited concept, research and visualisation by ([email protected])• artwork at anderson printing ([email protected]) What is our THE FIVE MINUTE READ WHO ARE WE? vision? Balaji Telefilms Limited (BTL) is one of the most successful media THE ABSORBING STORY OF TWO INDIVIDUALS - Anurag Basu and companies and the largest fiction- Prema Sharma – who are the children of two very close friends. What begins To emerge based television content provider on a predictable path of the two falling in love, gradually unfolds into a in the second most populous relentless series of unforeseen events that bring them close and then, as market in the world (India). It as a mysteriously, keep them apart! Marriages, affairs and children follow, but the enjoys a strong pedigree: it was promoted by Jeetendra Kapoor underlying question remains: When will Prerna and Anurag come together? complete (veteran Indian film artiste), his wife Shobha and daughter Ekta. Headquartered in Mumbai, the Indian media company hires more than 500 professionals. In 2003-4, it house achieved a gross revenue of Rs. 178.30 cr and a profit after covering the tax of Rs. 55.41 cr. widest WHAT DO WE DO? The company creates popular television entertainment software genres of across a number of Indian languages (Hindi, Telugu, Malayalam and Kannada). Over television the years, it created blockbuster programmes that captivated Indian programmes. imagination: Kyunki Saas Bhi Kabhi Bahu Thi, Kahani Ghar Ghar Ki, Kasautii Zindagi Kay and Hum Paanch (Hindi) and Pavitrabandhanam, Kalisundaram Ra (Telugu). At the close of 2003- FORWARD-LOOKING STATEMENT 4, the company had 14 serials on In this Annual Report we have disclosed forward-looking air, which translated into weekly information to enable investors to comprehend our prospects and programming of 27 hours. take informed investment decisions. This report and other statements - written and oral - that we periodically make contain forward-looking statements that set out anticipated results based on the management’s plans and assumptions. We have tried HOW DO WE EXPECT TO MAKE wherever possible to identify such statements by using words GROWTH SUSTAINABLE? such as ‘anticipate’, ‘estimate’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, and words of similar substance in connection • Make small budget films. with any discussion of future performance. • Create content in slots presently unoccupied by the company. We cannot guarantee that these forward-looking statements will be realised, although we believe we have been prudent in • Create semi-reality fiction soap for various channels assumptions. The achievement of results is subject to risks, • Launch a new serial in the afternoon slot on Star Plus. uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialise, or should underlying • Create content for new channels that are being launched. assumptions prove inaccurate, actual results could vary materially • Collaborate with international production houses to help them from those anticipated, estimated or projected. Readers should outsource their shooting and infrastructure requirements to the bear this in mind. company. We undertake no obligation to publicly update any forward- looking statements, whether as a result of new information, future events or otherwise. Mon – Thurs • 8.30 pm – 9.00 pm. Balaji Telefilms Limited Balaji of consolidation for the company as it focused on sustaining the number of programmes Telefilms concurrent with quality protection and enhanced production efficiencies. 31 April 2003 - March 2004 Financial review: Balaji Telefilms’ operations involve stringent fiscal discipline. The year Meet our Board of Directors: An insight into 2003-4 saw the company perform well on a the individuals whose visionary leadership number of financial parameters. 35 helped transform a small company into India’s Five-year financial summary: . 36 premier entertainment software organisation ..2 incorporated stretch goal-setting with a Ratios and ratio analysis: . 38 The year in retrospect – key highlights of the rigorous implementation discipline, resulting year: The numbers explain how the financial Risk management: Balaji Telefilms’ business in maximised value from each role, function year of 2003-4 was business-strengthening and model is marked by a methodical risk and position. 16 business-consolidating in a number identification and measurement process that of ways . 3 Efficient manufacture and value-chain mitigates the impact of variables. 40 management: At Balaji Telefilms, every serial Directors’ report: . 42 Corporate information: . 3 conforms to the principles of supply chain Corporate Governance report: . 46 Letters: A collection of some of the mail we management, high established quality and receive . 4 negligible inventory. 18 Financial results: . 57 Internal control: Balaji Telefilms’ rigorous Editorial: Chairman Jeetendra Kapoor explains audit mechanism, possibly the only one of its how the organisation embarked on the process kind in the Asian entertainment industry, to strengthen its business and acquire critical serves as an internal check, changing the mass . 6 everyday working at the company . 20 A review: “We spent much of last year Product management: Balaji Telefilms tightening systems and creating a modular faithfully studies audience responses through organisation.” managing director, Shobha an institutionalised feedback mechanism as a Kapoor explains how, in her review of the guide to onward content creation . 22 year’s performance . 8 Talent management: Balaji Telefilms has Method in madness: Creativity is not a consciously derived best people practices from coincidence, but a considered approach marked global human resource models, woven around by precise execution , Ekta Kapoor explains .10 a functional organisational structure . 23 Business model: Balaji Telefilms imbibed Industry review: A comprehensive top-down some of industry’s most effective management industry analysis, which helps readers practices, which helped reinforce its business appreciate the company’s industry model more comprehensively than others environment, the economy rub-off, regulatory in its industry . 12 changes and prospects. 24 Blue printing and budgeting: Balaji Telefilms Operating review: The year 2003-4 was one Annual Review 2003-4 1 THE BOARD OF DIRECTORS Jeetendra Kapoor Jeetendra Kapoor, Chairman, is the creative director at the age of 19. Her work in strategic planning. He has been company’s most visible entity. Mr. Kapoor has comprised entertainment landmarks in associated with Raymond Ltd. as Finance started his film career as a junior artiste India. She is actively involved in concept Director and Pinesworth Holding Ltd. with the reputed filmmaker V. Shantaram building, script design and creative (Singapore) as Executive Director. He and has since acted in more than 200 films. conversion. Ms. Kapoor was selected as possesses experience in evaluating and He has received several prestigious awards. one of Asia’s most powerful guiding business projects in India and The company leverages his industry communicators by the Asia Week abroad. standing and existing relationships with magazine. various television channels, artistes, Pradeep Kumar Sarda, Director, is a first directors and writers. Akshay Chudasama, Director, is an generation industrialist. He is the advocate at the Bombay High Court. The Chairman of the Sarda Group of Industries Shobha Kapoor, Managing Director and company leverages his rich expertise in and has vast experience in businesses such CEO, is responsible for the company’s joint venture, commercial / contractual as paper, engineering files, construction administrative and production functions. transaction structuring and documentation, and real estate. Mr. Sarda is also Chairman She is among the few Indian television corporate laws, mergers and acquisitions, of the Governing Board of Ecole Mondiale producers with a successful track record in anti-dumping, consumer protection, World School, Mumbai. a young industry. She has been insurance sector privatisation, alternate instrumental in shaping the company’s dispute resolution, Internet and cyber laws. Tusshar Kapoor, Director, is one of the diversification strategy promoters of the Company. He is a Dhruv Kaji, Director, is a Chartered management graduate from the University Ekta Kapoor, Creative Director, heads the Accountant with an experience of more of Michigan. An established actor, he company’s creative division. She than 25 years. A financial advisor and brings relevant experience from the film commenced her career as a producer and management consultant, his expertise lies industry. 2 Balaji Telefilms Limited THE YEA R IN RETROSPECT CORPORATE INFORMATION Directors Jeetendra Kapoor • Shobha Kapoor • Ekta Kapoor • Akshay Chudasama • Dhruv Kaji • Pradeep Kumar Sarda • Tusshar Kapoor Company Secretary Alpa Shah Operations realisations per hour from Rs. 11.06 lac to Rs. 11.97 lac. Statutory Auditors • Entered Doordarshan through the Deloitte, Haskins & Sells successful launch of Kayamat, a • A 18 per cent increase in average Snehal and Associates