Spine to be adjusted by printer ANNUAL REPORT 2014 -15 TELEVISION Developing Strong Brand Equity Pg. 42 Collaborating Creatively Pg. 44 “BEING world.com INSTITUTIONAL” Pg. 16 Ekta Kapoor dickenson MOVIES www. Optimising Pg. 52 dickenson Creative Strengths Creating an Exciting Pipeline Pg. 54 C-13, Balaji House, IPR Dalia Industrial Estate, Opposite Laxmi Industrial Estate, New Link Road, Andheri (West) Mumbai - 400 053. Monetising Current Assets Pg. 38 www.balajitelefilms.com Adding New Properties Pg. 39 Spine to be adjusted by printer Spine to be adjusted by printer 9 6 8 10 2 5 7 1 4 1. Ms. Ekta Kapoor 2. Mr. Sameer Nair The ‘Balaji’ brand is getting bigger each day. 3. Ms. Tanusri Dasgupta 4. Mr. Shubhodip Pal We have a strong visibility of our TV and movies 5. Mr. Ketan Gupta slate for 2016 and 2017 which underpins a 6. Mr. Tushar Hiranandani positive outlook. Our key drivers in FY2016 will 7. Ms. Coralie Ansari be great ideas, packaging and marketing. We 8. Mrs. Simmi Singh Bisht 9. Mr. Tanveer Bookwala will continue to focus on building strong brand 10. Ms. Ruchikaa Kapoor franchises to better connect with our TV and 11. Mr. Sanjay Dwivedi 3 film audiences. 12. Mr. Vimal Doshi 13. Mr. Ayan Roy Chowdhury Spine to be adjusted by printer 13 12 11 A transformational change is currently underway at the Balaji House. As a promoter driven company, Balaji has travelled a great journey of growth, stature and maturity. Thanks to the love, passion and hard work of the Kapoor family, Balaji now stands at the forefront of the entertainment industry and has the opportunity to travel into new orbits of growth. This will require them to place more focus on the big picture and strategic initiatives for the company. For this to happen, we are taking the operational processes. In this way, we organisation beyond our promoters. We are enabling order and predictability. are doing this by ensuring the Balaji We are empowering our human capital machinery works meticulously without through value-based leaderships and their involvement in day-to-day operations. entrepreneurship. We are building strategic We are making sure the organisation gains alliances to accelerate our growth process. muscle memory to deliver consistently without needing to reinvent established We are committed towards innovative processes. We are enabling our promoters and engaging change. We are developing with more breathing space to manage the a new language around the “Balaji” brand, “Big Picture”, to drive greater value creation establishing a fresher perspective in the for its stakeholders. We call this change marketplace. Our key objective is to make “Being Institutional”. the organisation sustainable and scalable. We are determined to build a respectable, By “Being Institutional”, we are inculcating inspirational and enduring institution. our organisation with strong management leaders and refined systems with strong 1 WHAt’s ABOUT US BUSINESS MD&A OVERVIEW At a Glance ...................................................... 4 Operational Highlights ..........................8 Vision & Values .............................................. 5 Financial Highlights .................................9 What Differentiates Us ...........................6 Awards & Accolades ...............................10 Corporate Information ........................... 7 Chairman’s Message .............................. 12 Managing Director’s Message ........ 14 Joint Managing Director’s Message ................................... 16 Group CEO’s Message ........................... 18 Board of Directors ...................................20 Economic Overview .............................. 22 Industry Overview ................................... 24 Our Television Business ....................32 Serials Currently on Air ....................34 Our Business Strategies and Our New Growth Pillars ..................38 Our New Business Properties .....39 Bolt Media .................................................41 Our Business Strategies In Television ...................43 Our Movies Business ........................... 46 Our Movies released in FY2015 ...48 Our Movies to released in FY2016 .............................49 Our Business Strategies in Movies ..........................52 2 Balaji Telefilms Limited MD&A (Cont.) FINANCIALS Key focus Areas FY2016 ................... 56 Standalone Financials Inventive and Clutter Independent Auditors’ Report .....115 free Marketing .......................................57 Balance Sheet ........................................... 118 Building the Value Chain by Leveraging Statement of Profit and Loss ......... 119 the Digital Platform ..........................58 Cash Flow Statement .........................120 Creating a well - Notes ................................................................122 functioning IP system ....................60 Strengthening our distribution .....61 Consolidated Financials Style Quotient : Independent Auditors’ Report ....143 Defined by the EK Label ...............62 Balance Sheet .......................................... 148 Management Outlook .........................64 Statement of Profit and Loss ........ 149 Notes ................................................................215 Risk Management and Internal Controls ......................................65 Cash Flow Statement .........................150 Human Resources ..................................66 Notes ................................................................152 Marinating Films Private Limited Cautionary Statement .........................67 Directors’ Report ................................... 224 Independent Auditors’ Report. ... 228 Director’s Report 68 Balaji Motion Pictures Limited Balance Sheet ..........................................232 Corporate Governance Report ....96 Directors’ Report ......................................174 Independent Auditors’ Report. .... 185 Statement of Profit and Loss ........233 Balance Sheet ...........................................188 Cash Flow Statement .........................234 Statement of Profit and Loss. ........ 189 Notes ...............................................................235 Cash Flow Statement ..........................190 Notes ................................................................. 191 Event Media LLP Independent Auditors’ Report . ..243 BOLT Media Limited Balance Sheet ..........................................244 Directors’ Report ...................................206 Statement of Profit and Loss ........245 Independent Auditors’ Report . ..210 Cash Flow Statement ........................ 246 Balance Sheet ...........................................212 Notes ...............................................................247 Statement of Profit and Loss .........213 Cash Flow Statement ..........................214 AGM Notice ................................................251 Annual Report 2014-15 3 AT A We have firmly established our identity as a game-changer and a harbinger of innovation in the Media & Entertainment (M&E) industry. e are one of India’s programming and successfully Industry. Our pioneering vision has W leading Television and evolved from being a pure-play resulted in continuous innovations, Movies production companies, TV content provider, into one that which then enabled us to attain with differentiated strengths produces content for the small and leadership and make a significant across television and motion big screen and contribution to the industry. pictures. We are the providers the Internet. of entertainment in India and With a strong track record of one of the first companies to We have firmly established our producing quality content for Hindi venture into Hindi and regional identity as a game-changer and GECs and an ability to create high- General Entertainment Channel a harbinger of innovation in the quality content, we are creating (GEC) space. We have established Media & Entertainment (M&E) new entertainment paradigms in a benchmark in television the M&E space. 01 A leading entertainment house in India 05 since 1994 Expanding presence in motion pictures across genres and 02 budget Ability to create high- quality content and strong presence in Hindi and Regional 04 GEC Established among Top 5 studios in Movie Production in 03 India Moved towards HD Programming to enhance viewing experience 4 Balaji Telefilms Limited OUR 16,000 150 Hours of Television Strong Library of Content across Genres TV Shows To consistently provide delightful and innovative entertainment experiences 25 8-10 by engaging audiences and Movies Produced so Movies in nurturing talent. far (approx.) the Pipeline 4 19 OUR Releases in FY2016 Modern (approx.) Studios Storytelling We always delight audiences 31 with our content and the Editing Suites 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 work together as a team. Excellence We push the bar and never settle for second-best. Annual Report 2014-15 5 WHAT We are well positioned to capitalise on the high-growth Indian domestic Media and Entertainment (M&E) industry with a structural upside. We are consistently delivering value through our distribution and marketing capabilities and maintaining a leadership position in the TV & Movie space. cross our dual delivery recurring cash flows to strengthen OUR KEY