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FINANCIAL S14195

FINANCIAL STATEMENT ANALYSIS

AN ANALYSIS ON COMPANIES FROMMEDIA &ENTERTAINMENT INDUSTRY

PALLAVI SARKAR H14195

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Acknowledgement

I would like to express my special gratitude and thanks to Fr. James SanthanamS.J. who has been a tremendous mentor for me. I would like to thank him forbeing my constant guide for my research and for allowing me to grow asprofessional and his advice on both research as well as on my career have beenpriceless. His constant guidance and encouragement has helped me understandvarious difficult and important topics and their application. I would also like tothank my commerce graduate friends in XLRI to help me out in the selection ofthe required data and tools & techniques.

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INDEX

1. HISTORY 3

2 ANALYSIS 12

3 STRENGTH & WEAKNESSES 23

4 RECOMMENDATION 24

5 LIMITATION 26

6 CONCLUSION 27

7 APPENDIX 28

8 REFERENCES 58

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BRIEF HISTORY

TV18

Television Eighteen India Ltd is India's No 1 News and Information Network and the premierprovider of business content in the country. The company is engaged in content production andbroadcasting. They operate India's leading business medium CNBC-TV18 & India's first consumerfocused business channel CNBC AWAAZ. Their subsidiaries include Television Eighteen MauritiusLtd, iNews.com Ltd, News Wire 18 India Pvt Ltd, RVT Investments Pvt Ltd, Television EighteenMedia and Investment Ltd, Mauritius and MobileNXT Online Pvt Ltd. Television Eighteen India Ltdwas incorporated on September 24, 1993 as a private limited company and in November 2, 1994, thecompany became a public limited company. The company became famous in their first year with thelaunch of India's first ever show on satellite television, namely 'The India Show' on Star Plus in theyear 1993.

They also produced a weekly business news programme, namely India Business Report for BBCWorld. In the year 1994, the company launched India's first street countdown show in 'Hinglish'.In the year 1996, the company set up a wholly owned subsidiary in Mauritius, namely Television

Eighteen Mauritius Ltd. Also, the company through Television Eighteen Mauritius Ltd entered into ajoint venture and launched Asia Business News India, the 24-hour hour business news andinformation channel. In December 1999, the company came out with a public issue of 29,36,000equity shares of Rs 10 each at a premium of Rs 170 per share. In March 2000, they incorporated e-18.com Pvt Ltd for setting up of business and finance internet portal. The subsidiary acquiredMoneycontrol Dot Com Private Ltd, the company owning the highly successful financial portal,Money control.com in May 2000.

In August 28, 2000, they incorporated iNews.com Ltd as a subsidiary company. During the year2001-02, the company hived off their entertainment part of the business to their 100% subsidiary,Eighteen Entertainment India Ltd. In April 2002, they terminated their ad sales representationrelationship with Sony Entertainment Television and set up a dedicated in-house marketing and salesteam for the channel. In April 2003, they appointed Zee Turner as the cable distribution partner forCNBC-TV18 service. During the year 2004-05, the company forayed into General News Space. InOctober 2004, the company acquired the running business of an established commodities portal,namely Agri Informatics India Pvt Ltd and in May 2005, the name was changed to TelevisionEighteen Commoditiescontrol.Com Ltd. During the year 2005-06, the company launched asubscription based investment advisory portal called poweryourtrade.com. Also, the company in jointventure with Norwest Venture Partners launched a e-recruitment provider, namely jobstreet.com. In

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December 2005, they launched a General English News Channel called CNN-IBN, which became thenumber one English news channel in India.

In April 2006, the company acquired 50% stake in Channel 7, a general news channel in Hindi. InNovember 2006, they acquired 'Crisil MarketWire', a realtime financial newswire, from Crisil Ltd,India's leading credit rating agency. The company was renamed as 'Newswire18' and operates theirown real-time market data and news terminal. During the year 2007-08, the company entered into ajoint venture agreement with Jagran Prakashan to launch a Hindi Business daily for the Indian marketand subsequently will be followed by other Indian language dailies focused on financial and economicnews. They acquired 40% interest in Infomedia India Ltd during the year. In July 2007, e-18, asubsidiary company acquired 35% in Ambit Capital Pvt Ltd. During the year 2008-09, the companysold their investment in Mobilenet Teleservices Pvt Ltd & Mobilenet Online Pvt Ltd.

ZEE ENTERTAINMENT

Zee Entertainment Enterprises Ltd is one of India's leading television, media and entertainmentcompanies. The company is amongst the largest producers and aggregators of Hindi programming inthe world, with an extensive library housing over 100,000 hours of television content. With rights tomore than 3,000 movie titles from foremost studios and of iconic film stars, Zee houses the world'slargest Hindi film library. Through their strong presence worldwide, Zee entertains over 500 millionviewers across 167 countries. The company is a pioneer of television entertainment industry in India.Their well-known brands include Zee TV, Zee Cinema, Zee Premier, Zee Action, Zee Classic, TenSports, Ten Cricket, Ten Action+, Zee Cafe, Zee Studio, Zee Trendz, Zee Khana Khazana, ZeeSalaam, Zee Jagran, Zing, ETC Music and ETC Punjabi.

The company also has a strong offering in the regional language domain with channels such as ZeeMarathi, Zee Bangla, Zee Telugu, Zee Kannada, Zee Talkies and Zee Cinemalu. Zee EntertainmentEnterprises Ltd was incorporated in the year 1982. The company was previously known as ZeeTelefilms Ltd. In the year 1992, the company launched their flagship television channel Zee TV.

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Since then, they have transformed themselves into an integrated media conglomerate with operationsspanning the entire media spectrum including television programming; satellite broadcasting;production and distribution of films; music publishing, long distance education and the creation ofanimation software. In the year 1994, Zee Records, the music-publishing arm of Zee, commencedtheir operations. Also, they launched Zee Education as a division of the company. The company's100% owned subsidiary, Siticable Networks Ltd (Siticable) commenced their operations as an MSOin Delhi for cable distribution system in India.

In the year 1995, Newscorp acquired a 50% stake in Siticable Networks Ltd in an equal joint venturewith the company. The company launched Zee TV in the UK / Europe. Also, they launched Zee Newsand Zee Cinema. In the year 1996, the company started their first cable channel in India under thename of Siti Channel. In the year 1997, they launched Zee Music (originally known as Music Asia).In the year 1998, the company launched Zee TV in the USA. Also, they launched Zee Cine Awards.During the year 1998-99, the company obtained 'A' category license for providing Internet services inIndia. During the year 1999-2000, the company acquired 50% stake in Asia Today Ltd, Siticable andProgramme Asia Trading Company Ltd. They launched four regional channels under the umbrellabrand of Alpha, namely Alpha Marathi, Alpha Bangla, Alpha Punjabi and Alpha Gujarato. Also, theylaunched two new 24-hour channels, namely Zee English and Zee Movies to enter the Englishlanguage market. They launched two new channels namely Zee Bangla and Musia Asia in UK andlaunched Zee Gold in USA.

During the year, the education division of the company was demerged and transferred to a separatesubsidiary company namely, Zee Interactive Learning Systems Ltd. In September 1999, the companyacquired Zee Multimedia Worldwide Ltd and thus all the international operations including thebroadcasting business of ZMWL came under the company's control. During the year 2000-01, thecompany launched the Direct-to-Operator (DTO) encrypted channel bouquet comprising of ZeeCinema, four Alpha channels and two English channels. Also, they divested their stake in BuddhaFilms Ltd (BFL), Zee Sports Ltd (ZSL) and Zee Publishing Ltd (ZPL).

During the year 2001-02, the company produced their first big budget movie 'Gadar -Ek Prem Katha'.They formed a joint venture company 'Zee Turner Pvt Ltd' to market and distribute the pay channelbouquet consisting of 14 channels of Zee and 3 channels of Turner in the Indian sub-continent,thereby creating a formidable combination of highly popular channels. They consolidated theiroperations by linking their various control rooms through HFC. Master Control Rooms (MCR) wasestablished at Hyderabad and Bangalore linking the control rooms through optic fibre, therebyensuring improvement in the quality of signal delivery to customers. During the year, Zee InteractiveMultimedia Ltd, a company set up to provide broadband and conditional access services, merged withSiticable Network Ltd. The company acquired a controlling stake in ETC Networks Ltd, a companyengaged in production, marketing and distribution of two television channels with a leading presencein Music and Punjabi language segment. With these acquisitions ETC Networks Ltd became asubsidiary of the company. Also, the company acquired a controlling stake in Padmalaya TelefilmsLtd, a company engaged in production and distribution of feature films (in Telugu and Hindilanguages) and television serials. During the year 2002-03, the company hived off two of the foreignsubsidiaries namely Hokushan Trading Company Ltd and Asia TV USA, Inc. Also, three whollyowned subsidiaries were merged with the company. During the year 2003-04, the company enteredinto an MoU with Zee News Ltd, a company 100% owned by Indian nationals, for transfer of physicalinfrastructure, the editorial and other staff etc, related to production and Broadcast of News andCurrent Affairs programme on Zee television channels including Zee News. Dakshin Media Ltd, awholly owned subsidiary company was amalgamated with the company. Further, the company

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consolidated operations of their foreign subsidiary company located at Mauritius by merging of AisaTV (Africa) Ltd, Software Supplies (International) Ltd, Zee Telefilms International Ltd and ZeeMGM Ltd with Asia Today Ltd, Mauritius. Also, another overseas subsidiary, Asia T.V. (Netherlands)Ltd, BVI had been liquidated.

During the year 2004-05, the company launched a new channel, namely Zee Sports to the meet theinsatiable quest of Indian viewers to enjoy telecast of sports event in India and abroad. The companydivested their stake in Padamalaya Enterprises Pvt Ltd, which was the holding company ofPadamalaya Telefilms Ltd. Expand Fast Holdings Ltd, one of the overseas subsidiaries, merged withAsia Today Ltd, Mauritius (ATL). Also, ATL, the wholly owned subsidiary of Winterheath CompanyLtd (WCL) merged with the holding company, WCL.

After the merger, WCL changed its name to Asia Today Ltd. Also, ATL acquired 100% stake in PanAsia Infrastructure Ltd, a Mauritius based company, engaged in the business of broadcast oftelevision channel in middle east in South Asian language and development of media city in Dubai.During the year 2005-06, Siti Cable Network Ltd, a wholly owned subsidiary of the companyacquired entire shares in Indian Cable Net Company Ltd. During the year 2006-07, the companycompleted the process of de-merger of their News, Cable and Direct Consumer Services businessundertakings. Respective resultant entities namely, Zee News Ltd (ZNL) for news business, Wire &Wireless (India) Ltd (WWIL) for cable business and Dish TV India Ltd (formerly known as ASCEnterprises Ltd) (Dish TV). Consequent to demerger of Cable and DCS Business Undertakings of thecompany, the subsidiaries of the company pertaining to the said Business Undertakings, namely, SitiCable Network Ltd, Central Bombay Cable Networks Pvt Ltd, Integrated Subscribers ManagementServices Ltd, New Era Entertainment Network Ltd, Siti CableBroadband South Ltd and Indian CableNet Company Ltd ceased to be subsidiaries of the company.

The company exited from their investment in 25 FPS Media Pvt Ltd (25 FPS) and consequently 25FPS ceased to be a subsidiary with effect from July 24, 2006. In November 2006, Zee SportsInternational Ltd, Mauritius, acquired 50% stake with majority representation in the board in Taj TVLtd, Mauritius, which owns 'Ten Sports' channel. Also, the company acquired 50% stake withmajority representation in the board in Taj Television India Pvt Ltd, Mumbai which is the distributionarm of Ten Sports in India. The name of the company was changed from Zee Telefilms Ltd to ZeeEntertainment Enterprises Ltd with effect from January 10, 2007. During the year 2007-08, pursuantto a scheme of amalgamation, ETC Networks Ltd, a listed subsidiary of the company, merged withZee Interactive Learning Systems Ltd. The merged entity was subsequently renamed as ETCNetworks Ltd. Asia Today Ltd., Mauritius, a wholly owned overseas subsidiary of the companyacquired entire equity stake in APAC Media Ventures Ltd, a company registered in Hongkong,effective October 30, 2007, for the purpose of its broadcasting foray in the Asia Pacific Region.

During the year 2008-09, Asia Today Ltd., Mauritius, a wholly owned overseas subsidiary of thecompany, acquired the balance 40% equity stake in Asia Business Broadcasting (Mauritius) Ltd, acompany registered in Mauritius and divested their entire 100% holding in Pan Asia Infrastructure Ltd,Mauritius. Additionally with a view to comply with the regulatory requirements for RussianBroadcasting Operations, Asia TV Ltd, UK, an overseas subsidiary created/ acquired an indirectsubsidiary called 'OOO Zee CIS Holdings Ltd' in Russia.

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During the year, the company ventured into the film production and distribution business, withlaunch of two labels, namely Zee Motion Pictures and Zee Limelight for mainstream and niche films,respectively. For that the purpose, they acquired/created direct/ indirect subsidiaries namely, ZESHoldings Ltd, Mauritius, Zee Entertainment Studios Ltd, British Virgin Islands, ZES Mauritius Ltd,Mauritius, ZES International Ltd, United Kingdom and Zee Motion Pictures Pvt Ltd., India.

During the year 2009-10, as per the scheme of arrangement, the company demerged the RegionalGeneral Entertainment Channel Business Undertaking (comprising of Zee Marathi, Zee Bangla, ZeeTalkies, Zee Telugu, Zee Cinemaalu and Zee Kannada television channels) of Zee News Ltd (ZNL)vesting with the company on the appointed date, January 1, 2010. The scheme became effective fromMarch 29, 2010. Also, ETC Networks Ltd (ETC), a listed subsidiary of the company merged with thecompany with effect from appointed date, March 31, 2010. Upon such merger, the EducationBusiness Undertaking of the company was demerged from the company and transferred to Zee LearnLtd on the appointed date, April 1, 2010. Also, the 9X Channel Business Undertaking of INX MediaPvt Ltd (now known as 9X Media Private Ltd) was demerged and transferred to the company. Duringthe year, ETC Networks Ltd (ETC), the listed subsidiary of the company acquired the entireshareholding in Cornershop Entertainment Company Pvte Ltd which in turn held 100% stake inCornershop Animation Pvt Ltd, Digital Media Convergence Ltd and Re-Med Services Pvt Ltd.Subsequently, these subsidiaries amalgamated with ETC from the appointed date January 1, 2010 inpursuance of a scheme of amalgamation which became effective on April 29, 2010. Asia TV Ltd,United Kingdom, one of the overseas subsidiary along with its subsidiary OOO Zee CIS Holding Ltd,Russia jointly acquired 100% stake in OOO Zee CIS Ltd, a broadcasting operating company in Russia.

During the year 2010-11, the company dissolved ZES International Ltd, UK, a wholly ownedsubsidiary of ZES Entertainment Studios Ltd, BVI and Zee Sports Americas Ltd, Mauritius witheffect from June 29, 2010 and June 9, 2011. Asia Business Broadcasting (Mauritius) Ltd, Mauritiuswas amalgamated with its holding company Asia Today Ltd, Mauritius. Also, Zee EntertainmentStudios Ltd, BVI and ZES Mauritius Ltd, Mauritius amalgamated with their holding company ZESHoldings Ltd, Mauritius with effect from March 31, 2011 and March 18, 2011 respectively. Also,ZES Mauritius Ltd, Mauritius divested their entire stake in the Indian subsidiary, Zee Motion PicturesPvt Ltd.

During the year, the joint ventures of the company in digital distribution viz. ITM Digital Pvt Ltd,and in India branded Entertainment Portal viz. India Webportal Pvt Ltd commenced their operations.The company has in-principle approved the acquisition of the balance shareholding of 5% in Taj TVLtd., Mauritius (Taj) by Zee Sports International Ltd, Mauritius (ZSIL), thus making Taj a whollyowned subsidiary of ZSIL and the amalgamation of ZSIL with their holding company Asia Today Ltd,Mauritius.

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UTV

UTVMotion Pictures is a film unit of UTV Software Communications, a subsidiary of The WaltDisney Company.

UTV Motion Pictures have formed one of the leading film studios in India. The Studio’s activitiesspan across creative development, production, marketing, distribution, licensing, merchandising andsyndication of films in India and worldwide.

UTV Motion Pictures as a dominant player in the Indian film industry has been in the forefront ofbringing Indian films to a global audience and the last decade in Indian cinema has seen UTV MotionPictures delivering some of the most iconic films. UTV Motion Pictures' films have also been selectedto represent India at the Academy awards; films were Rang De Basanti (2006),HarishchandrachiFactory (2009) Peepli Live (2010) and Barfi! (2012). In 2011, UTV Motion Pictures also became oneof the few studios to successfully venture into South Indian cinema. UTV Motion Pictures has alibrary of over 70 films including Hindi, Regional, Animation and International Productions, whichhave been showcased in over 50 festivals across 28 countries, receiving almost 250 awards in the last7 years.

UTV Software Communications Ltd is India's first integrated global media and entertainmentcompany. The company has five business verticals, which includes TV content production & services,motion pictures, broadcast, interactive and new media. The company and their subsidiaries create,aggregate and disseminate content of various genres across varied distribution platforms.Thecompany has subsidiaries with offices across India, Mauritius, UK USA and Japan. Their subsidiariesincludes UMP Plc, UTV Motion Pictures Mauritius Ltd, IG Interactive Entertainment Ltd, UTVCommunications (USA) LLC and Ignition Entertainment Ltd. The company has grown from aTelevision Production house, into an integrated media company with interests in Motion Pictures,New Media that includes Animation and Gaming, Television Content and Broadcasting.

UTV Software Communications Ltd was incorporated in June 22, 1990 as a private limited. Thecompany became a public limited on November 27, 1995. The company primarily engaged in theproduction of television content for Doordarshan and ad films. In the year 1992, with the entry ofsatellite TV, the company produced the content of around 250 hours for Zee TV and became one ofthe largest content providers. During the same period, the company expanded their business into in-flight entertainment programming and dubbing. In the year 1993, the company ventured into businessof acquiring programs from outside producers and marketing airtime on their programs. In the year

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1995, they launched India's first daily soap titled Shanti. In May 1995, the company acquired LaezerProduction Pvt Ltd in order to enter into the area of postproduction. During the year 1995-96, thecompany ventured into movie distribution business.

In November 1998, the company diversified into broadcasting business, by acquiring interest in VijayTelevision Ltd. In the year 2000, they incorporated UTV Net Solutions Ltd. In August 2000, thecompany acquired UTV International (Singapore) Pte Ltd from Media Ventures Ltd and UnilazerHong Kong Ltd through a share swap. Also, they acquired the remaining equity share in UnitedStudios Ltd and thus became a wholly owned subsidiary company.

In the year 2001, the company acquired the remaining 80% stake in Vijay Television Pvt Ltd for aconsideration of Rs 69.52 million. During the year 2002-03, they acquired the studio business ofWestern Outdoor Media Technologies Ltd in order to attain leadership position in post-production,special effects and animation business. Also, they sold their entire holdings in UTV International(Singapore) Pte Ltd and Sharkstream.com Pte Ltd to Logic Plastic Pvt Ltd. In February 2004, thecompany hived off their post-production and 2D animation business in favour of UnitedEntertainment Solutions Pvt Ltd. During the year 2004-05, the company successfully launched aworldwide Film Distribution Network with offices in USA, UK and Mauritius, For that, theyincorporated three wholly subsidiaries, namely UTV Communications (USA) LLC, UTVCommunication (UK) Ltd, UTV Communications (Mauritius) Ltd. Also, they successfully completedtheir IPO, comprising around 7 million equity shares and were issued at Rs 130 per share. The IPOwas oversubscribed about 27 times. In August 2004, they sold their 43.89 stake in Vijay TelevisionPvt Ltd to STAR Group. Also, they sold their holding in Media Capital Company (India) Ltd for aconsideration of Rs 2 lakh. In September 2004, the company through their joint venture United HomeEntertainment Pvt Ltd launched India's first local content kids channel titled, Hungama TV.

During the year 2005-06, the company produced programmes for channels like Star Plus, Star One,Sony Entertainment Television, Zee TV, Zee Cafe, BBC World, Doordarshan and Hungama TV. Inthe Airtime Sales business, the company acts as a quasi-broadcaster primarily on a leading SouthIndian Network. They market airtime across 4 major languages, namely Tamil, Telugu, Malayalamand Kanada. In March 2006, the company sold their entire holding in UTV International Holdings(BVI) Ltd to Media Footing Sdn Bhd for a consideration of USD 5,10,000. During the year 2006-07,the company inducted a strategic investor, namely The Walt Disney Company (Southeast Asia) PteLtd, whereby, Disney acquired 14.85% stake in the company. Disney also acquired the company'sentire stake in their broadcasting venture, United Home Entertainment Ltd (Hungama TV). Also, thecompany transferred their motion pictures production business to UTV Motion Pictures (Mauritius)Ltd.

United Entertainment Solutions Ltd, a wholly subsidiary company merged with the company witheffect from April 1, 2006. In March 2007, UMP Plc was incorporated at Isle of Man and became awholly owned subsidiary of the company on April 12, 2007.

During the year 2007-08, UMP Plc, a subsidiary company acquired 99.75% controlling stake in UTVMotion Pictures (Mauritius) Ltd and thus UTV Motion Pictures (Mauritius) Ltd became a downstreamsubsidiary of the company. During the year, the company incorporated two 50:50 joint venturescompanies, namely Windmill Entertainment Ltd and Smriti Irani Television Ltd. During the year, theDisney increased their stake in the company from 13.7% to 32.1%. During the year, the companyforayed into the Telugu film industry and acquired distribution rights for Telugu Superstar MaheshBabu's 2008 blockbuster 'Atidthi' and signed him for another 2 movies. They also ventured into the

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Tamil film industry with their first co-production 'Kennamoochi Yennada'. The company tent-poleproduction 'Jodha Akbar', the first blockbuster of 2008, released in 1500 screens worldwide.

In December 14, 2007, IG Interactive Entertainment Ltd acquired 54.86 % equity stake inIndiagames Ltd, which is into the business of mobile and online gaming. Simultaneously, thecompany also acquired 12.11% equity stake in Indiagames Ltd. Thus, the company along with IGInteractive Entertainment Ltd holds 66.97% stake in Indiagames Ltd. In January 2008, the companyacquired 100% stake in UTV TV Content Ltd (formerly known as UTV Movies Ltd) for aconsideration of Rs 0.50 million. Also, they sold their 98.75% equity stake in UTV Broadcasting Ltd,a dormant company for a consideration of Rs 19.75 million. In April 2008, the company acquired100% equity stake in UTV New Media Ltd, which is in the business of developing and maintainingwebsites and acquisition and exploitation of digital rights on mobile and digital platforms. In May2008, the company incorporated a joint venture company, namely RB Entertainment Ltd. Also, theyacquired 100% holdings in First Future Agri & Developers Private Ltd. In June 2008, 'TheHappening', the first mainstream Hollywood film was released by the company. In July 2008, thecompany's broadcasting unit entered a deal with IPTV service provider, The New Media Group, tolaunch two channels on the IPTV platform. Hindi movie channel UTV Movies, and English businessnews channel UTVi, will be launched in Japan, Australia and New Zealand on the 'World On-Demand' IPTV platform. Also, the company entered into a MoU to acquire a 51% stake in one of thetier mobile content aggregator in the United States of America through one of the Company'ssubsidiary, Indiagames Ltd. In August 2008, the company acquired 75% equity stake in UTV GlobalBroadcasting Ltd. Also, IG Interactive Entertainment Ltd (IGI), a UK based 100% subsidiary of thecompany, entered into definitive agreements with True Games Interactive (True Games), a Californiabased corporation for acquisition of 80% stake in True Games

PVR

PVR Ltd is a leading and premium Multiplex Cinema Exhibition company. The company pioneeredthe multiplex revolution in India by establishing the country's first multiplex cinema. The companyalso earns revenue from in-cinema advertisements/product displays and in-cinema sale of food andbeverages. The company is the largest Multiplex Cinema operator by number of screens in India. Thecompany has four subsidiaries namely CR Retail Malls (India) Pvt Ltd, Sunrise Infotainment Pvt Ltd,PVR Pictures Ltd and PVR bluO Entertainment Ltd. The company operates a film distribution andproduction business through their subsidiary, PVR Pictures, which acquires and distributes Indian and

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international films. PVR Ltd was incorporated on April 26, 1995 as Priya Village Roadshow Ltd,pursuant to a joint venture agreement between Priya Exhibitors Pvt Ltd and Village Roadshow Ltd.The company established the first Multiplex Cinema in India, PVR Anupam, in Saket, New Delhi inJune 1997 and they computerized box office operations by selling computerized tickets.

In January 2000, the company commenced single-screen cinema PVR Priya at Vasant Vihar, NewDelhi. In April 2001, the company opened a four-screen Multiplex Cinema, PVR Naraina in NewDelhi and in November 2002, they opened a three-screen Multiplex Cinema, PVR Vikaspuri in NewDelhi. In the year 2002, as a part of disinvestment, Village Roadshow Ltd sold their entireshareholding to Priya Exhibitors Private Ltd. Hence, the company changed their name from PriyaVillage Roadshow Ltd to PVR Ltd with effect from June 28, 2002. In March 2003, the IndiaAdvantage Fund-I managed by ICICI Venture Funds Management Company Ltd, invested Rs. 380million in the company by acquiring 38.45% stake by way of purchase of equity shares from BIPL.

In May 2003, the company opened a seven-screen Multiplex Cinema, PVR Gurgaon at theMetropolitan mall, Gurgaon, Haryana. In the year 2004, they opened India's largest Multiplex Cinema,PVR Bangalore, with eleven screens at the Forum mall, Koramangla, Bangalore. In May 2004, thecompany opened PVR Plaza, a single-screen cinema with a heritage ambience at Connaught Place,New Delhi and in November 2004, they commenced operations at the first multiplex under themanagement fees/franchise model - PVR SRS, a three screen Multiplex Cinema at SRS mall,Faridabad, Haryana. In March 2005, the company opened their Multiplex Cinema, PVR EDM, athree-screen cinema at East Delhi Mall, Uttar Pradesh.

During the year 2005-06, the company commenced operations at three new multiplex projectsnamely PVR Punjagutta - Hyderabad, PVR Rivoli - Delhi and Spice PVR - Noida. They alsocommenced operations at five new multiplex properties at Mumbai, Indore, Lucknow and Gurgaon.PVR Pictures Ltd became 100% subsidiary of the company during the year.

During the year, the company made an initial public offering of 7,700,000 equity shares, comprisinga fresh issue of 5,700,000 equity shares by the company and an offer for sale of 2,000,000 equityshares by The Western India Trustee and Executor Company Ltd. In January 4, 2006, the company'sshares were listed on the National Stock Exchange and the Bombay Stock Exchange. During the year2006-07, the company commenced commercial operations form seven new multiplex projects namely,PVR Juhu, Mumbai; PVR Indore, PVR Lucknow, PVR Mulund, Mumbai, PVR Sahara Mall,Gurgaon, PVR Talkies, Aurangabad and PVR Talkies, Latur, Also, they acquired the entireshareholding of Sunrise Infotainment Pvt Ltd thereby making it as a wholly owned subsidiarycompany. During the year, the company launched a new brand of cinema called 'PVR Talkies' to caterthe demand of the cinema viewing public in class B & C cities at a lower price range for an enhancedmovie viewing experience. They opened their PVR Talkies multiplexes at Aurangabad. The companyentered into the business of Food Court by launching its first outlet at Sahara Mall, Gurgaon, Haryanaby the name of 'PVR Food Union'.

During the year 2007-08, the company commenced operations at four new multiplex projects,thereby adding 16 new screens under operation. The company operates film distribution andproduction business through its subsidiary, PVR Pictures. is involved in production of Hindi films anddistribution of Indian and international films. 'Taare Zameen Par' and 'Jaane Tu ya Jaane na' the firsttwo co-production movies of PVR Pictures, released during the year. During the year, the companyintroduced PVR Premiere brand with their first cinema at Select Citywalk Mall in Delhi. Thecompany signed an MoU with Gyan Enterprises Pvt Ltd to enter in to a joint venture through a special

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purpose vehicle namely Lite Bite Foods Pvt Ltd for the purpose of running, managing and operatingFood Courts, Restaurants, Pubs, Coffee Shops etc. In March 28, 2008, the company incorporatedPVR bluO Entertainment Ltd as a subsidiary of the company pursuant to the joint venture with MajorCineplex Group, for carrying out the activities of setting-up and running Bowling Alleys, KaraokeCenters and Ice Skating Rinks across India. During the year 2008-09, the company and theirsubsidiaries started commercial operations at Ambience Mall, Ambience Food Court, Chandigarh,Phoenix Mills Limited, Mumbai and Oberoi Malls, Mumbai. In May 2008, Sunrise Infotainment PvtLtd opened their multiplex and in December 26, 2008, C R Retail Malls (India) Pvt Ltd opened amultiplex in Mumbai. PVR Pictures Ltd, the wholly owned subsidiary company co-produced a movienamely 'Jaane Tu Ya Jaane Na' with Amir Khan Production Pvt Ltd. In March 12, 2009, PVR bluOopened their first and India's largest 24 lane Bowling Centre with the brand name of 'blu-O' located atprestigious Ambience Mall in Gurgaon. The company has been pursuing an expansion plan thatinvolves setting up of 42 additional screens in the next year, which will be in line with our strategy tobe the major Cinema Exhibition player in the country. The company filed a scheme of amalgamationentailing merger of Sunrise Infotainment Pvt Ltd, a subsidiary company with the company with theappointed date April 01, 2008 and the Hon'ble Delhi High Court approved the merger on August 4,2009.

FINANCIAL ANALYSIS

HORIZONTAL & TREND ANALYSIS

1. INVENTORIES

Inventories are typically classified as current assets on the balance sheet. Managerialaccounting courses cover the specifics of accounting for manufactured inventory. Generallyit’s being focussed on the general principles of inventory accounting those are applicable tomost enterprises. If we compare the individual inventories, it has always been high than theindustry average. UTV in 2010 showed the highest variation in the inventory whereas thePVR Cinemas has remained with the impeccable constant level of inventories.

2.PBDIT

Profit before interest and taxes have been a very good parameter for obtaining theperformance of the companies. The industry average has loomed very low here as this ismade up of about 70 small and big companies. Maximum variation here can be seen in TV18in the period between Mar 2010-Mar 2011. Overall the fluctuations has been very small andthe UTV shown a great recovery from negative variation to positive one and later remainedstable.

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3.SALES TURNOVER

Sales turnover represents the value of goods and services provided to customers during a specifiedtime period - usually one year. The term is often just referred to as sales or net sales, which meansrevenues without VAT. Sales turnover is usually expressed in monetary terms but can also be in totalunits of stock or products sold. It is often described by being converted into the company's accountingcurrency.TV18 has shown the maximum sales turnover. This was attributed to the fact that thecompany expanded three folds and ventured into different domains of entertainment. Zee remained atthe above average performer in this and industry average was lower than the players.

4.DEBTORS

SUNDRY DEBTOR - is an entity from who amounts are due for goods sold or services rendered or inrespect of contractual obligations. Also termed: debtor, trade debtor, and account debtors. Here, due toexpansion of the company the sundry debtors also increased in case of the TV18 network. UTV hasremained very successful in curbing this to some extent. Zee has remained at a predictable rate in thisventure.

5.TOTAL EXPENSES

The total expenses incurred by the company have remained one of the aspect with irregular variationsamong all the four players. Maximum variation appeared during the initial periods in TV18 and theUTV which later recovered to some extent. This can be attributed due to the different strategies andthe level of expansion forced by the company for their promotion.

6. NET SALES

On the field of net sales TV18 has remained quite strong. YOY it has posted high net sales. PVR inthis parameter has remained very strong and has always posted positive variation in terms on net sales.This shows the incremental strengthening of the company with respect to other companies. Theindustry average has rather remained on the lower side. The industry trend has ore or less followed bythe observed companies.

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VERTICAL ANALYSIS1. TOTAL LIABILITY

The aggregate of all debts an individual or company is liable for. Total liabilities can be easilycalculated by summing all of one's short-term and long-term liabilities, along with any off balancesheet liabilities which corporations may incur. On the balance sheet, total liabilities plus equity mustequal total assets. A company's total liabilities can be split up into two basic parts, short- and long-term liabilities. Short-term liabilities are typically liabilities which are due within one year or less.Long-term liabilities are those with a time horizon of maturity is past the one year point. Liabilitiessuch as loans, leases and taxes due can fall into either category.

In this aspect, all the companies have remained at the higher than industry average in all the periodsof observation. UTV has shown the high liability as compared to other companies an ZEE hasmanaged to remain at the closest to the industry average.

2.TOTAL ASSET

In financial accounting, an asset is an economic resource. Anything tangible or intangible that iscapable of being owned or controlled to produce value and that is held to have positive economicvalue is considered an asset. Simply stated, assets represent value of ownership that can be convertedinto cash (although cash itself is also considered an asset).The balance sheet of a firm records themonetary value of the assets owned by the firm. It is money and other valuables belonging to anindividual or business. Two major asset classes are tangible assets and intangible assets. Tangibleassets contain various subclasses, including current assets and fixed assets. Current assets includeinventory, while fixed assets include such items as buildings and equipment.

Intangible assets are nonphysical resources and rights that have a value to the firm because they givethe firm some kind of advantage in the market place. Examples of intangible assets are goodwill,copyrights, trademarks, patents and computer programs, and financial assets, including such items asaccounts debtors, bonds and stocks.

Total asset has always remained more than industry average for these companies. Strikinglydifference can be observed in the total asset of the TV18 , UTV combined and PVR ,ZEE on otherside. In entertainment sector this will be very common feature for the companies to have copyrights ofthe popular television soaps and the series.

3.OPERATING PROFIT

This is the profit earned from a firm's normal core business operations. This value does not includeany profit earned from the firm's investments (such as earnings from firms in which the company haspartial interest) and the effects of interest and taxes. Thus it gives the direct effect of the companyfunctioning and efficiency. In this parameter, UTV has shown negative variation with a larger extent.Industry average has always remained positive throughout the period.

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FINANCIAL RATIO ANALYSIS

1.DEBT EQUITY RATIO

A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders'equity. It indicates what proportion of equity and debt the company is using to finance its assets.Sometimes only interest-bearing, long-term debt is used instead of total liabilities in the calculation.Also known as the Personal Debt/Equity Ratio, this ratio can be applied to personal financialstatements as well as corporate ones.

A high debt/equity ratio generally means that a company has been aggressive in financing its growthwith debt. This can result in volatile earnings as a result of the additional interest expense.If a lot ofdebt is used to finance increased operations (high debt to equity), the company could potentiallygenerate more earnings than it would have without this outside financing. If this were to increaseearnings by a greater amount than the debt cost (interest), then the shareholders benefit as moreearnings are being spread among the same amount of shareholders. However, the cost of this debtfinancing may outweigh the return that the company generates on the debt through investment andbusiness activities and become too much for the company to handle. This can lead to bankruptcy,which would leave shareholders with nothing. The debt/equity ratio also depends on the industry inwhich the company operates. For example, capital-intensive industries such as auto manufacturingtend to have a debt/equity ratio above 2, while personal computer companies have a debt/equity ofunder 0.5.

Here, UTV and Zee Entertainment has shown phenomenal growth depicted by their debt to equityratio. Industry average has loomed around 0.5 and most companies had remained above this ratiomark.

2.FIXED ASSET TURNOVER

A financial ratio of net sales to fixed assets. The fixed-asset turnover ratio measures a company'sability to generate net sales from fixed-asset investments - specifically property, plant and equipment(PP&E) - net of depreciation. A higher fixed-asset turnover ratio shows that the company has beenmore effective in using the investment in fixed assets to generate revenues. This ratio is often used asa measure in manufacturing industries, where major purchases are made for PP&E to help increaseoutput. When companies make these large purchases, prudent investors watch this ratio in followingyears to see how effective the investment in the fixed assets was.

If the fixed asset turnover ratio is low as compared to the industry or past years of data for the firm, itmeans that sales are low or the investment in plant and equipment is too high. Industry average is onthis side. This may not be a serious problem if the company has just made an investment in fixed assetto modernize, for example. If the fixed asset turnover ratio is too high, then the business firm is likely

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operating over capacity and needs to either increase its asset base (plant, property, equipment) tosupport its sales or reduce its capacity. This is shown in the UTV financial data and the Zee.

3.INVENTORY TURNOVER RATIO

Inventory Turnover Ratio is one of the efficiency ratios and measures the number of times, on average,the inventory is sold and replaced during the fiscal year. Inventory Turnover Ratio measurescompany's efficiency in turning its inventory into sales. Its purpose is to measure the liquidity of theinventory.

Inventory Turnover Ratio is figured as "turnover times". Average inventory should be used forinventory level to minimize the effect of seasonality. This ratio should be compared against industryaverages.

A low inventory turnover ratio is a signal of inefficiency, since inventory usually has a rate of returnof zero. It also implies either poor sales or excess inventory. This can be seen in UTV data. A lowturnover rate can indicate poor liquidity, possible overstocking, and obsolescence, but it may alsoreflect a planned inventory build-up in the case of material shortages or in anticipation of rapidlyrising prices. A high inventory turnover ratio implies either strong sales or ineffective buying (thecompany buys too often in small quantities, therefore the buying price is higher).A high inventoryturnover ratio can indicate better liquidity, but it can also indicate a shortage or inadequate inventorylevels, which may lead to a loss in business. This can be observed in the case of the TV18 or Zee.

High inventory levels are usual unhealthy because they represent an investment with a rate of returnof zero. It also opens the company up to trouble if the prices begin to fall. A good rule of thumb is that

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if inventory turnover ratio multiply by gross profit margin (in percentage) is 100 percent or higher,then the average inventory is not too high.

4.DEBTORS TURNOVER RATIO

Debtors Turnover Ratio is one of the efficiency ratios and measures the number of timesdebtors are collected, on average, during the fiscal year.

Debtor turnover ratio measures company's efficiency in collecting its sales on credit andcollection policies. This ratio takes in consideration ONLY the credit sales. If the cash salesare included, the ratio will be affected and may lose its significance. It is best to use averageaccounts debtors to avoid seasonality effects. If the company uses discounts, those discountsmust be taken into consideration when calculate net accounts debtors.

Accounts debtors represents the indirect interest free loans that the company is providing toits clients. Therefore, it is very important to know how "costly" these loans are for thecompany.

A high debtors turnover ratio implies either that the company operates on a cash basis or thatits extension of credit and collection of accounts debtors are efficient. Also, a high ratioreflects a short lapse of time between sales and the collection of cash, while a low numbermeans collection takes longer. The lower the ratio is the longer debtors are being held and therisk to not be collected increases. A low debtors turnover ratio implies that the companyshould re-assess its credit policies in order to ensure the timely collection of credit sales thatis not earning interest for the firm.

A ratio that is low by industry standards will generally indicate that your business needs toimprove its credit policies and collection procedures.

If the ratio is going up, either collection efforts may be improving, sales may be raising ordebtors are being reduced.

Debtors turnover ratio is figured as "turnover times". A popular variant of this ratio is toconvert it into an average collection period in terms of days.

5.CURRENT RATIO

Current Ratio is a liquidity ratio that measures company's ability to pay its debt over the next12 months or its business cycle.

Current ratio is a financial ratio that measures whether or not a company has enoughresources to pay its debt over the next business cycle (usually 12 months) by comparingfirm's current assets to its current liabilities. Acceptable current ratio values vary fromindustry to industry. Generally, a current ratio of 2:1 is considered to be acceptable. Thehigher the current ratio is, the more capable the company is to pay its obligations. Currentratio is also affected by seasonality.

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If current ratio is below 1 (current liabilities exceed current assets), then the company mayhave problems paying its bills on time. This can be seen in the TV18 situation. However, lowvalues do not indicate a critical problem but should concern the management. One exceptionto the rule is considered fast-food industry because the inventory turns over much morerapidly than the accounts payable becoming due.

Current ratio gives an idea of company's operating efficiency. PVR and the industry averagehas shown the high current ratio. A high ratio indicates "safe" liquidity, but also it can be asignal that the company has problems getting paid on its receivable or have long inventoryturnover, both symptoms that the company may not be efficiently using its current assets.

STRENGTHS &WEAKNESSES

TV18

In fiscal 2013, TV18’s operating profit margin was 20% of net revenue of Rs.541.5 crore.The margin is under pressure and, of its three main cost heads—staff, production anddistribution—it has targeted the first two to shore up profitability.

The strength of the TV18 news channels lies in their being distributed as part of IndiaCast,which includes entertainment and children’s channels, unlike NDTV for instance, said aperson who has worked closely with TV18 in the past. IndiaCast is a joint venture betweenTV18 and Viacom18 that distributes all the channels of TV18 and Viacom18 acrossplatforms such as cable, direct-to-home (DTH) and Internet protocol TV (IPTV).

Given current market reality, though—slowing ad spending, an economy in trouble—thecompany will have to rationalize marketing, distribution and programme costs, the analystsaid. Still, it isn’t exactly comparable with any other group since it is highly diversified, notfamily-owned, and professionally run.But one of its weaknesses is that it has probably spreaditself too thin. Now it is setting out to reverse the whole process, getting rid of the non-corebusinesses and consolidating. Most of those likely to be laid off are from the editorial andtechnical teams. The marketing team is pretty lean as it is, said a person familiar with thedevelopment.Some of these acquisitions had gone “horribly wrong”, according a secondTV18 official. “The Tata Donnelley (Ltd) acquisition bled us by Rs.250 crore,” he added.The company, which published the Yellow Pages, was renamed Infomedia18 Ltd. TV18 soldsome of the businesses of this firm earlier this year, and is looking for buyers for others.

ZEE

ZEE has been the leading broadcaster in India and overseas for South East Asian content andbestows the first mover advantage across genres. It has the widest offering of channels by asingle broadcaster in the country. Across genres, ZEE channels are either leaders or strong

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contenders for the leadership Position. Diversified revenue streams: advertising andsubscription large network gives tremendous leverage with advertisers. Affiliate companieshave leading presence across the media value chain cable and distribution, direct-to-homesatellite services, digital media amongst others

UTV

Good Infrastructure and assets gives it a competitive advantage. Entertainment across allmedia devices and gadgets leaving no stone unturned in media industry which cross promotesinter institution brand. The UTV group has expanded into 5 verticals, all of which allow forsynergy across in terms of content development, communication and development of thoughtleadership. This also creates exciting opportunities for employees to move across businessesin order to broaden their experience and enrich their career. Strong brand presence in theindustry and high market share.

Late entry into the market compared to leading players and the heavy competition from thecompetitors. Government hasseles and the requirement of financial restructuring forced dueto high competition.

PVR

PVR has got the first mover advantage in multiplex business in India.It Develop and operatestate-of-the-artmultiplexes to create superior quality ambiance, Usage of technologicallyupdated systems like Dolby stereo sound system, Digital Cinema technology, Xenontechnology etc.It has gained exclusive rights to screen blockbusters from major distributorsmainly Warner brothers, 20th century fox etc. Assets in the prime location such as largestmultiplex operators in the world with more than 1500 screens under operation and verystrong brand equity and blend of retail and entertainment.

Weaknesses comprises of the strategic pint of view and the financial aspects. As ticket salesat higher prices, Customer retention over longer terms is a problem. Parking problems arethere which leads to Lack of customer feedback for improvement of services. Government’sinterference with entertainment tax. Consumer resorting to other ways of entertainment.Piracy and economic slowdown may affect industry.

Recommendations

The Media & Entertainment Industry is comprised of a set of diversified companies. They aremainly television network and station owners, and are typically involved in programming andproduction of content, including feature films. It is a constantly evolving group, withprospects in certain subsectors being much better than in others. Revenue trends in certaincore segments, including broadcast television and radio, tend to vary with consumers' andadvertisers' preferences towards new forms of media. Several conglomerates control a largeproportion of the industry, somewhat limiting competitive pressures.

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Environmental Factors

The trend in advertising spending is an important factor affecting this group. Indeed, a largeproportion of this industry's top line is derived from ad expenditures, on both the national andregional levels. Strong demand in the upfront (advance) market occurs during an economicupturn, indicating bright prospects. Auto manufacturers are the largest advertisers, whileretailers and financial services companies also play a large role. However, when these firmsslash spending, it hampers the earnings of entertainment companies heavily reliant onadvertising. Meanwhile, a television station owner's ad income tends to fluctuate in tandemwith viewership ratings. In addition, ad pricing can be affected by various metrics. Exampleswould be the level of airtime inventory, occurrences of local and general elections, and theOlympics. Finally, other forms of revenue may consist of affiliate fees from cable televisionproviders, the sale of syndication program rights, film box office receipts, as well as sales ofphysical media (such as DVDs) and downloadable content.

A flourishing economy will help broadcasters by way of higher corporate ad demand andmore personal spending. During a slow economy, corporations are likely to cut theiradvertising spending. However, entertainment companies can often mitigate the effectthrough initiatives such as higher affiliate fees, which work to support the top line. Reviewinga company's earnings history should be indicative of how well it has navigated economicslumps.Technological advances also play a role in the industry. Products, such as namelydigital media and high-definition (HD) content, have widened consumer choice, which tendsto spur competition. On point, subscriber acquisition costs, consisting of programming,production, distribution and marketing expenses, are likely to increase.

Asset Mixes

When evaluating a media firm, consideration should be given to the businesses in which itoperates and the proportion of revenues accorded to each endeavour. For instance, cabletelevision and outdoor advertising (billboards) may be seen as having better prospects thanradio. Companies with larger, more diverse holdings are often capable of realizing revenueand cost synergies that mitigate some risk. In addition, operating margin improvement isusually driven by cross-platform tie-ins of popular brands through various outlets, such asconsumer products (namely toys) that market popular films.

Buyouts and divestitures are common among industry participants seeking to achieve theideal structure. Popular areas for purchases can include, but are not limited to, video gaming,digital, and online properties. The deals may not be immediately beneficial to the bottom line,though, because of increased R&D and content development expenses. In the meantime,divestiture of traditional radio properties is a common thread in the industry. Finally,regulations, including those pertaining to restrictions on the ownership of multiple televisionstations in one market, impact the composition of the industry and foster competition.

Investments in Growth

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Consumer preferences often change, and successful media companies periodically reviewtheir portfolios, while taking action to improve their product mix. The creation of qualitycontent is becoming increasingly important, as is international expansion. Largeconglomerates with strong balance sheets, access to cheap capital, and strong distributioncapabilities are best positioned for overseas ventures. Smaller companies, operating in one ortwo subsectors, may be ill-equipped to invest in operations that will boost their profit growthpotential. Meanwhile, the growth of emerging markets is a positive for the industry. Indeed,many companies have taken a foothold in these markets, and continued expansion in thisregard is likely.

A healthy financial position is vital in determining the ability of a media firm to make theright investments. A moderate amount of leverage is seen as being favourable, sinceborrowings are often required for investments in small acquisitions or new projects.Restraints on available credit might hinder a firm's ability to enter new sectors. Cash flow isan important metric, and should be evaluated to determine if a firm can easily fund itsexpansion initiatives, as well as pay down debt and repurchase shares.

Limitations

There are severe limitations on the side of analysis of financial statements which makes themineffective at times. Past financial performance, good or bad, is not necessarily an accuratepredictor of future performance. Financial statements do not tell you about changes in seniormanagement. Financial statements do not tell you about the loss of major customers.Financial statements do not tell you about the competitive environment in which the companyoperates. Financial statements do not disclose the company’s future prospects, or the resultsof its expenditures on Research and Development, or new product introductions, or newmarketing campaigns, or new pricing strategies, or the customer’s recent decision to enter orexit a particular market segment. The more out-of-date a customer’s financial statements are,the less reliable they are as a risk management tool. Without reading the Notes to thefinancial statements, credit managers cannot get a clear idea of the risk they are evaluating.Unaudited statements may or may not follow Generally Accepted Accounting Principles, andif they do not follow GAAP relying on them could be a serious mistake. Financial statementscan be altered legally by adjusting certain types of reserves. Financial results can beimproved by reducing or eliminating discretionary expenditures - even if this cost cutting is atthe expense of long term growth and profits.

Foreign financial statements do not follow GAAP. In some cases, local accounting rules areso different from GAAP accounting rules that it is easy to make the wrong decision afterreviewing the foreign financial data. Unaudited statements may be inaccurate, misleading, oreven deliberately fraudulent - and if they seem too good be true, they may be just that. To seethe big picture, it is necessary to have at least two consecutive periods of financial statementsfor comparison. Trends will only become apparent this way. The corollary is that it is not

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enough to know a customer’s financial weaknesses. It is also important to know whether thecustomer’s financial performance is weak but improving or weak and deteriorating.

Audited statements do not guarantee accuracy. Even audited financial statements are subjectto a degree of manipulation. Off balance sheet financing is lawful, but can have a devastatingeffect on a customer’s financial health. The fact that a company is publicly traded and itsfinancial statements are readily available does not guarantee that the company in question isfinancially stable and creditworthy.

Conclusion

The Entertainment Industry can change rapidly. Thus, the ability to identify desirable content,foresee trends, capitalize on expansion opportunities requires a good deal of managerial skill.A focus on growth markets, such as online content, generally adds to a company's long-termappeal. By the same token, investors should be wary of those with large holdings in decliningsectors. Additional investment attributes include a healthy return on capital and solid cashflows. And, from time to time, some companies may be viewed as attractive in light of near-term catalysts, such as well-received movies. Finally, some entertainment equities, primarilythose of broadcast television station owners, often offer attractive dividend yields. Large-capstocks with high marks for Price Stability can also be found in this industry.

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APPENDIX

1. INDUSTRY AVERAGE DATABALANCE SHEETA. TREND ANALYSIS

Mar'14 Mar'13 Mar'12 Mar'11 Mar'10 Mar'14 Mar'13 Mar'12 Mar'11 Mar'10

Total ShareCapital

2602.84 3733.48 4210.92 3639.82 3037.58 85.69 122.91 138.63 119.83 100

Equity ShareCapital

NA NA NA NA NA NA NA NA NA NA

ShareApplicationMoney

NA NA NA NA NA NA NA NA NA NA

PreferenceShare Capital

NA NA NA NA NA NA NA NA NA NA

Reserves 21024.12 16413.19 20151.23 17778.38 13425.02 156.6 122.26 150.1 132.43 100

RevaluationReserves

NA NA NA NA NA NA NA NA NA NA

networth NA NA NA NA NA NA NA NA NA NA

Secured Loans 8113.63 9261.99 6889.76 6452.84 5159.63 117.76 134.43 100 125.06 100

UnsecuredLoans

1658.72 3388.29 27777.59 3519.55 5450.4 30.43 62.17 50.96 64.57 100

Total Debt 9772.35 12650.28 9667.35 9972.39 10610.03 92.1 119.23 91.12 93.99 100

Total Liabilities 34185.42 33885.08 34797.32 32706.54 27176.04 125.79 124.69 128.04 120.35 100

Gross Block 22073.96 21930.19 20300.1 16934.93 13857.1 159.3 158.26 146.5 122.21 100

Less AcumDepriciation

10211.92 9525.93 8067.36 6471.18 4913.66 207.83 193.87 164.18 131.7 100

Ne Block 11860.14 12402.36 12215.32 10446.33 8943.44 132.61 138.68 136.58 116.8 100

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CapitalWork inprogress

1860.18 4861.13 1907.36 2203.91 1980.6 93.92 245.44 96.3 111.27 100

Investments 11546.94 9848.43 11796.62 12640.83 10456.91 110.42 94.18 112.81 120.88 100

Inventories 1811.08 2874.36 3292.77 1931.7 1753.51 103.28 163.92 187.78 110.16 100

Sundry Debtors 4431.56 5019.21 6131.22 5411.49 4725.53 93.68 106.21 129.75 114.52 100

Cash and BankBalance

2854.75 2652.22 4206.4 4323.4 2443.93 116.81 108.52 172.1 176.9 100

total CurrentAssets

12137.91 13644.91 18589.72 18940.34 16008.9 75.82 85.23 116.12 118.31 100

Loans andAdvances

3030.54 3099.15 4959.67 7273.75 7085.92 42.91 43.74 69.99 102.65 100

Fixed deposits NA NA NA NA NA NA NA NA NA NA

Total CA Loans& Advances

15178.45 16744.06 23549.39 26214.09 23094.82 65.72 72.5 101.97 113.51 100

Deferred Credit

CurrentLiabilities

6950.03 8505.09 10242.08 10160.27 9136.86 76.07 93.09 112.1 111.2 100

Provisions 1494.28 1345.76 1429.57 924.28 161.67 145.6 154.67 116 134.32 100

total Cl&Provisions

8444.81 9850.85 11671.65 11401.77 10061.14 83.93 97.91 116.01 113.32 100

Net CurrentAssets

3693.11 3794.04 6918.06 7538.57 5947.76 62.09 63.79 116.31 126.75 100

Misc. Expenses 0 0.01 0.86 44.03 49.11 0 0.02 1.75 89.66 100

Total Assets 34185.45 33885.04 34797.32 32706.53 27176.05 125.79 124.69 128.04 120.35 100

ContingentLiabilities

NA NA NA NA NA NA NA NA NA NA

Book Value NA NA NA NA NA NA NA NA NA NA

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B. HORIZONTAL ANALYSIS

27

C. VERTICAL ANALYSIS

PROFIT & LOSS SHEET

28

A. TREND ANALYSIS

29

B. HORIZONTAL ANALYSIS

30

C. VERTICAL ANALYSIS

RATIO ANALYSIS

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2. UTV BALANCE SHEET-

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A. TREND ANALYSIS

B.UTV –HORIZONTAL ANALYSIS

33

C.UTV VERTICAL ANALYSIS

34

D.UTV P&L-TREND ANALYSIS

35

E.UTV HORIZONTAL ANALYSIS

36

F. UTV VERTICAL ANALYSIS

37

G.UTV RATIO ANALYSIS

38

3.TV18-BALANCE SHEET

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A. TREND ANALYSIS

B.TV18_BS_HORIZONTAL & VERTICAL ANALYSIS

40

C.TV18-P&L TREND ANALYSIS

41

D.TV18-PL_HORIZONTAL & VERTICAL ANALYSIS

42

E.TV18_RATIO ANALYSIS

43

3. ZEE BAL SHEET

44

A. TREND ANALYSIS

45

B.BALANCE SHEET HORIZONTAL & VERTICAL ANALYSIS

46

C.ZEE P&L TREND ANALYSIS

47

D.ZEE P&L HORIZONTAL & VERTICAL ANALYSIS

48

E.ZEE RATIO ANALYSIS

49

4.PVR

A.BALANCE SHEET TREND ANALYSIS

50

B.PVR BALANCE SHEET HORIZONTAL & VERTICAL ANALYSIS

51

C.PVR_P&L_Trend Analysis

52

D.PVR –P&L HORIZONTAL & VERTICAL ANALYSIS

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E.RATIO ANALYSIS

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REFERENCES

1. http://www.livemint.com/Consumer/JpFdfgQQx808C7vC4RH7PI/TV18-Group-restructures-operations.html

2. http://www. moneycontrol.com3. Financial accounting, R Narayanaswamy, PrenticeHall India4. http://www.valueline.com/Stocks/Industry_Report5. Capital Line Magazine6. WIKIPEDIA