Inspired Leadership
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Zee Entertainment Enterprises Limited Annual Report 2010-11 Inspired Leadership Zee Entertainment Enterprises Limited Registered & Corporate Office Continental Building 135, Dr. Annie Besant Road, Zee Entertainment Enterprises Limited Enterprises Entertainment Zee Worli, Mumbai 400018 Maharashtra, India. Tel. +91 22 6697 1234 Fax +91 22 2490 0302 www.zeetelevision.com Annual Report 2010-11 Annual Report Inspired Leadership Forward-looking statement In this Annual Report, we have disclosed forward looking information to enable investors to comprehend our prospects and take 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, wherever possible, to identify such statements by using words such as ‘anticipate’, ‘estimate’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward looking statements will be realised, although we believe we have been prudent in our assumptions. The achievements of results are subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Readers should keep this in mind. We undertake no obligation to publicly update any forward looking statement, whether as a result of new information, future events or otherwise. Contents Regional Offices International Offices Representative Offices New Delhi USA Hong Kong Corporate B - 10, Essel House, One Penn Plaza 250 W 34th St 47B, Tower 5 Lawrence Road, Industrial Area, New York, NY 10119 The Belcher’s New Delhi - 110035 Tel - +16467459000 Overview 89 Pok Fu Lam Road Tel - 011 27101145 / 54 United Kingdom 01 Fax - 011 27192172 Hong Kong ZEE at a Glance Operational Review Asia TV Ltd Tel: +8526 056 0413 02 ZEE – A 5-Minute Read 24 MD & CEO’s Review Noida Unit 7, Belvue Business Centre, Belvue Road, Filmcity 19, Northoit, Middlesex, UB5 5QQ, Thailand 44 04 The New ZEE 26 The ZEE Calendar Sector 16 - A, London, United Kingdom . Pretty Trading Co. Ltd., 06 Channel Portfolio 28 Accolades FY 2011 Noida - 201301 Tel - +44 020 88394000 3rd Floor, Modern Town Building 10 FY 2011 in Retrospect 30 Distribution Tel - 0120 2511064 Fax - +44 020 8841 9550 87/49 Ekamai Soi 3, Sukhumvit 63 Kolkatta South Africa North Klongtan, Wattana, Inspired Leadership 32 Broadcasting 33 Technology 5 A/1 & 5 A/2, 5th Floor, 1st Floor, 110 Atrium Terraces, 272 Oak Bangkok - 10110 14 Chairman’s Letter to the Park Plaza, 71 Park Street, Avenue, Ferndale, Randburg, South Africa. Tel: + 66 (02) 3924351-53 Shareholders 34 Profitability Kolkatta - 700016 . Tel - +27 117813352 Australia 16 Industry Transformation 36 Sustainability Tel - 033 22275458 / 5459 Fax - +27 117813347 Fax - 033 22275463 36-38 Cowper Street, 18 Regional Roots 38 Human Resource Mauritius 39 Corporate Information Hyderabad 2nd Floor, Ebene House, 33, Parramatta, NSW 2150 20 Consolidation 6-2-929 DB Enclave, Cybercity Ebene, Mauritius, Australia 22 Innovation Board of Directors Raj Bhavan Road, Khairtabad, Tel - +230 4642222 / 6666 Tel: +61 405 686020 Team ZEE Hyderabad - 500004 Fax - +230 4644040 Tel - 040 23320139 / 23320770 China Fax - 040 23320164 Southern Securities Building, Board and Pune Room 1610 Other Offices Swastik Apartments, #148 Ti Yu Rd East, Gulmohar Lane, Of Law College, Tianhe District, Guangzhou Management Report Opp . Nirmiti Showroom, Guangdon Zee Marol Office Erandawane, Pune - 411004 Tel - +86 2038931510 Plot No - 99 , 45 45 Notice Tel - 020 25530043 Fax - +86 2038931503 Marol Co - Op Industrial Estate , Fax - 020 25532049 48 Directors’ Report Malaysia Marol , Andheri (E) , 54 Annexure to the Directors’ Report Chennai Level 16, 1 Sentral Jalan, Stesen Sentral 5, Mumbai - 400059 Alpha Centre, Essel House, KL Sentral 50470, kuala Lampur, Malaysia. Tel - 022 28521199 89 60 Report on Corporate Governance 3rd Floor, No .150 & 151, Tel - +603 20929297 78 Management Discussion and Analysis North Usman Road, Fax - +603 20929201 Braodcast Operations Filmcity 19, Sector 16A T - Nagar, Chennai - 600017 Singapore Tel - 044 28144964 Expand Fast Holdings (Singapore Pte Ltd ) Noida - 201301 Fax - 044 28144963 500, Rifle Range Road, # 01-09 Bukit Timah Tel - 0120 - 2511064 Bangalore Satellite, Earth Station, Singapore - 588397 Broadcasting Division - ETC 204, 2nd Floor, H. M. Tel - +65 64652406 Geneva House, 14, Fax - +65 64668837 7B, Shah Industrial Estate , Financials Off. Veera Desai Road , Cunningham Road, UAE - Dubai Standalone Consolidated Andheri (W) , Mumbai - 400053 Bangalore - 560052 Zee Telefilms Middle East FZLLC 91 Auditors’ Report 131 Auditors’ Report Tel - 080 22373183 / 84 / 85 / 86 Dubai Mediacity, Tel - 022 67813737 Fax - 080 22373180 Fax - 022 26732030 94 Balance Sheet 132 Balance Sheet Dubai UAE, 90 P.O.Box No. - 500484 95 Profit & Loss Account 133 Profit & Loss Account Tel - 0097144264100 96 Schedules & Notes 134 Schedules & Notes Fax - 0097143625386 125 Balance Sheet Abstract 161 Cash Flow Statement Taj TV Ltd 163 Dubai Mediacity, Dubai UAE, 126 Cash Flow Statement 163 Financial Highlights of P.O.Box No. - 502018 128 Last Five Years Financial Subsidiaries Tel - 0097143919500 Highlights Russia Moscow 129 Performance Ratios – OOO Zee CIS 115419, Moscow Street Ordzonikidze, An Analysis Building 11 Stroniye 11, Office 903 Note Tel -+ 74959551886 1) The acronym ZEE stands for Zee Entertainment Enterprises Limited throughout the entire report Fax -+ 74959551883 2) As per the notification of the Government of India the Indian Rupee is denoted by ` throughout the entire report “Inspired leadership is all about leading from the front, creating benchmarks of excellence for others and self and forever dwelling outside the comfort zone. I am proud to say that today ZEE has not only created new benchmarks for itself, but also set examples for others to follow.” Mr. Subhash Chandra Chairman, ZEE Zee Entertainment Enterprises Limited Annual Report 2010-11 /1 INSPIRED LEADERSHIP ZEE A 5-Minute Read Who How are we we are performing? We are one of India’s leading Media & We are pioneers of the Indian private television entertainment industry. From Entertainment companies, and one of launching the first entertainment channel, Zee TV in 1992, to launching India’s the largest producers and aggregators first food channel, Zee Khana Khazana last year, we have been at the forefront of of Hindi programming globally. We innovation since inception. We were also the first to spot opportunities in the regional operate 25 TV channels in India and markets and launched dedicated regional channels, thereby widening our audience 17 beams in international markets. Our base and brand appeal. We were also the first to go international by launching our offerings span across various genres: services in UK in 1995, and today with our presence in 167 countries, we are the most Hindi Entertainment, Hindi Movies, preferred Hindi entertainment destination of the South Asian Diaspora globally. English Entertainment & Movies, Regional Language Entertainment, Our focus in the coming years is on sports and digital and we have taken significant Sports, Alternate Lifestyle, Music and steps in that direction. With the acquisition of Taj Television, the launch of Ten Cricket Special Interest Channels. and Ten Action+, we hope to bring world-class sports content to our viewers. Our foray in digital with our partner, Mail.com Media Corporation (MMC) will focus on With our successful marketing launching content centric digital properties. initiatives, constant evolution to align with the changing audience preferences and continuous investments in new technology platforms, we have positioned ourselves as one of the Financial Summary most popular entertainment networks. Today, ZEE enjoys a robust pan-India Figures in ` million FY2010 FY2011 Change (%) market share of 13%, and a healthy 16.1% in the Hindi speaking markets. Revenues 21,998 30,136 37.0 We are also the frontrunner in content EBITDA 6,135 8,266 34.7 distribution through both the traditional EBITDA Margin 27.9% 27.4% (analogue) and new (digital) platforms. PBT (after exceptional Item) 6,738 8,922 32.4 We are also the largest entertainment Basic EPS (after exceptional item and 6.78 6.51 -4.0 network catering to the South Asian discontinuing operation) community across the world. Gross Debt 1,195 17 -98.6 Networth* 38,300 30,947 -19.2 Fixed Assets* 19,587 8,464 -56.8 Net Current Assets 16,550 15,225 -8.0 * Pursuant to Corporate Restructuring ZEE at a Glance Inspired Leadership Operational Review ZEE Board of Directors Team ZEE A 5-Minute Read 25 17 167 500mn+ 100,000+ channels international countries viewers hours of television beams content Our What What is recognitions we think? changing? Our endless efforts to entertain The digital drive led by the Collaborations and partnerships are viewers have been consistently exponential growth of DTH has been on the radar as we strive harder to recognized by the industry. a significant feature over the last few explore new frontiers. Our first major ZEE’s innovative content and years making it possible for C&S to step in this direction is a partnership execution excellence have been reach 80% TV households in India. with STAR to form a distribution praised