Spine to be adjusted by printer C-13, Balaji House, Dalia Industrial Estate, Opposite Laxmi Industrial Estate, New Link Road, Andheri (West) Mumbai - 400 053. www.balajitelefilms.com world.com dickenson www. dickenson Spine to be adjusted by printer Spine to be adjusted by printer Spine to be adjusted by printer We are content innovators, creators and producers of unmatched credentials and long-standing success. We operate as a vertically integrated studio model, which allows us to create, distribute and monetise content, not only in ways that are best aligned with viewer preferences, but in ways in which we can capture the maximum value stream. With a focus on chasing quality growth, we continue to create gripping content – content that is relevant to As global viewership diverse sets of audiences and accessible across multiple platforms. continues to evolve, we have With geographical boundaries disappearing in the seamless world of the anticipated future trends and internet, we aim to make our content seamlessly available. Improvement in created new entertainment mobile broadband infrastructure, gradual reduction in cost of internet and paradigms. Today, we increase in smartphone screen sizes is driving consumer preferences. straddle across all the three The Subscription Video on Demand (SVOD) market in India is on the cusp distinct platforms through of a meteoric take-off. As Over The Top (OTT) video consumption continues which people consume to grow tremendously, we are leveraging our capabilities to create content entertainment – across platforms. Our motive is vertical integration across the value chain by Television, offering our own OTT services. We are making our delivery channels more closely aligned to the emerging needs and creating entertainment-on-the-go Movies and for our dynamic audiences. Internet Video-On-Demand. So, while our Television business is our solid ground for stability, profitability and predictability; our Movie business is about quantum gusts of growth and a force of reckoning within the pinnacles of the entertainment industry. The launch of our newest vertical – ALT Digital Media Entertainment Limited, the digital media and Internet video-on-demand business – is part of our continual string of path-breaking developments. Our digital business is all about igniting a surge in direct entertainment consumption, from which we can now capture the entire value stream, right from the earliest sparks of content ideation to the final point of the consumer across platforms. In time, we wish to emerge as one of the most recognised and most influential entertainment providers across conventional and new digital channels. 1 www.balajitelefilms.com What’s Inside WE ARE WHERE INDUSTRY 001 OUR AUDIENCE IS 024 OVERVIEW About Us Indian Media & Entertainment Industry ........................24 At a Glance ..............................................................................4 Underlying Growth Drivers ......................................... 26 Our Strategic Framework .....................................................6 Indian Television Industry ........................................... 27 Corporate Information ..........................................................7 Indian Movie Industry .................................................. 28 Revisiting an Exciting Year ...................................................8 Digitisation of Media ................................................... 29 Creditable Growth of BTL (Standalone) ............................8 Industry Outlook ................................................................. 30 Awards & Accolades .......................................................... 10 Messages to Shareholders ..............................................12 Chairman’s Message ................................................... 13 Managing Director’s Message ................................... 14 Joint Managing Director’s Message ......................... 17 Group CEO’s Message ................................................ 18 Our Board of Directors ....................................................... 20 MANAGEMENT 022 DISCUSSION & ANALYSIS Economic Overview ...........................................................22 Global Economy ........................................................... 22 Indian Economy ............................................................ 23 Indian Economy – Growth Drivers ..................... 23 2 Balaji Telefilms Limited 2016 Annual Report 1 ABOUT US ABOUT Cash Flow Statement .....................................................122 COMPANY Notes ..................................................................................124 OVERVIEW Consolidated Financials 032 Independent Auditors’ Report .......................................146 Balance Sheet ..................................................................150 Our Television Business ...................................................32 Statement of Profit and Loss ........................................151 Our TV Shows Aired during FY2016 and FY2017 . 34 Cash Flow Statement .....................................................152 Notes ..................................................................................154 Our Other Growth Pillars in TV Business ................. 40 Balaji Motion Pictures Limited Chhayabani Balaji Directors’ Report ...............................................................176 Entertainment Private Limited ............................ 40 Independent Auditors’ Report. .......................................191 Marinating Films Private Limited ....................... 41 Balance Sheet ...................................................................194 Statement of Profit and Loss. ........................................195 Event Media LLP .................................................... 42 Cash Flow Statement ......................................................196 Bolt Media Limited ................................................ 43 Notes ...................................................................................197 BOLT Media Limited Our Movies Business .........................................................44 Directors’ Report ..............................................................210 Revolutionising the Art of Independent Auditors’ Report . ......................................218 Marketing our Movies ................................................. 46 Balance Sheet ..................................................................222 A Peek into some of our Statement of Profit and Loss ........................................223 Key Marketing Strategies ........................................... 47 Cash Flow Statement .....................................................224 Notes ..................................................................................225 Our Strategic Advantages in Movies ........................ 48 Marinating Films Private Limited What is Driving our Movies Business ....................... 48 Directors’ Report ..............................................................234 Independent Auditors’ Report. .......................................242 Our Value Drivers in Movies ....................................... 49 Balance Sheet ..................................................................246 Our Movie Releases in FY2016 and FY2017 .......... 50 Statement of Profit and Loss ........................................247 Our Movies to be Released in FY2017 ..................... 55 Cash Flow Statement .....................................................248 Notes ..................................................................................249 Our Digital Business Event Media LLP ALT Digital Media Entertainment Limited ...................... 56 Independent Auditors’ Report . ......................................257 Brand EK – Making our Mark in the Fashion World ..... 60 Balance Sheet ..................................................................258 Statement of Profit and Loss ........................................259 Management Outlook ........................................................ 62 Cash Flow Statement .....................................................260 Risk Management & Internal Controls ........................... 64 Notes ..................................................................................261 ALT Digital Media Entertainment Limited Human Resources .............................................................. 66 Directors’ Report ...............................................................268 Cautionary Statement ........................................................ 67 Independent Auditors’ Report . ......................................280 Balance Sheet ..................................................................284 FINANCIALS Statement of Profit and Loss ........................................285 Cash Flow Statement .....................................................286 Notes ..................................................................................287 068 Chhayabani Balaji Entertainment Private Limited Balaji Telefilms Limited Directors’ Report ..............................................................296 Directors’ Report ................................................................ 68 Independent Auditors’ Report . ......................................304 Corporate Governance Report ......................................... 94 Balance Sheet ..................................................................308