Balaji Telefilms s

---------------
---- in Rs.
Cr.
---------------
Balance Sheet ----
Mar '05 Mar '06 Mar '07 Mar '08

12 mths 12 mths 12 mths 12 mths

Sources Of Funds
Total Share Capital 13.04 13.04 13.04 13.04
Equity Share Capital 13.04 13.04 13.04 13.04
Share Application Money 0 0 0 0
Preference Share Capital 0 0 0 0
Reserves 200.09 237.43 291.12 351.8
Revaluation Reserves 0 0 0 0
Networth 213.13 250.47 304.16 364.84
Secured Loans 0 0 0 0
Unsecured Loans 0 0 0 0
Total Debt 0 0 0 0
Total Liabilities 213.13 250.47 304.16 364.84
Mar '05 Mar '06 Mar '07 Mar '08

12 mths 12 mths 12 mths 12 mths

Application Of Funds
Gross Block 55.93 66.95 77.68 94.77
Less: Accum. Depreciation 21.29 30.7 38.1 50.49
Net Block 34.64 36.25 39.58 44.28
Capital Work in Progress 1.2 5.07 3.83 17.62
Investments 113.75 162.39 178.76 249.89
Inventories 23.87 11.62 6.87 9.57
Sundry Debtors 53.5 73.7 66.84 68.54
Cash and Bank Balance 2.24 5.53 3.41 7.01
Total Current Assets 79.61 90.85 77.12 85.12
Loans and Advances 17.45 17.05 43 40.52
Fixed Deposits 0.77 0.71 2.97 0.6
Total CA, Loans & Advances 97.83 108.61 123.09 126.24
Deffered Credit 0 0 0 0
Current Liabilities 34.09 38.91 39.33 45.79
Provisions 0.19 22.93 1.75 27.42
Total CL & Provisions 34.28 61.84 41.08 73.21
Net Current Assets 63.55 46.77 82.01 53.03
Miscellaneous Expenses 0 0 0 0
Total Assets 213.14 250.48 304.18 364.82
Contingent Liabilities 0.48 0 2.87 30.2
Book Value (Rs) 32.68 38.41 46.64 55.95
Mar '09

12 mths

13.04
13.04
0
0
375.84
0
388.88
0
0
0
388.88
Mar '09

12 mths

98.14
57.68
40.46
51.39
245.67
0.9
50.57
6.97
58.44
29.77
4.16
92.37
0
37.95
3.05
41
51.37
0
388.89
 5.7
59.63
 ---------------
---- in Rs.
Cr.
Profit & Loss account of Balaji ---------------
Telefilms ----
Mar '05 Mar '06 Mar '07 Mar '08

12 mths 12 mths 12 mths 12 mths

Income
Sales Turnover 196.75 280.37 317.47 328.97
Excise Duty 0 0 0 0
Net Sales 196.75 280.37 317.47 328.97
Other Income 4.37 8.15 8.3 16.1
Stock Adjustments 16.58 -12.25 -4.75 2.71
Total Income 217.7 276.27 321.02 347.78
Expenditure
Raw Materials 0 0 0 0
Power & Fuel Cost 2.29 2.73 3.16 3.75
Employee Cost 5.4 7.17 11.57 13.62

Other Manufacturing Expenses 123.37 144.35 154.96 164.2

Selling and Admin Expenses 9.5 10.19 12.62 13.62
Miscellaneous Expenses 3.47 6.41 5.66 6.11
Preoperative Exp Capitalised 0 0 0 0
Total Expenses 144.03 170.85 187.97 201.3
Mar '05 Mar '06 Mar '07 Mar '08

12 mths 12 mths 12 mths 12 mths

Operating Profit 69.3 97.27 124.75 130.38

PBDIT 73.67 105.42 133.05 146.48
Interest 2.09 3.14 4.57 6.18
PBDT 71.58 102.28 128.48 140.3
Depreciation 9.74 14.33 11.25 12.7
Other Written Off 0 0 0 0
Profit Before Tax 61.84 87.95 117.23 127.6
Extra-ordinary items 0.74 0.26 0.81 0.35
PBT (Post Extra-ord Items) 62.58 88.21 118.04 127.95
Tax 21.07 28.56 38.31 40.55
Reported Net Profit 41.3 59.42 79.43 87.93
Total Value Addition 144.03 170.86 187.97 201.31
Preference Dividend 0 0 0 0
Equity Dividend 82.43 19.56 22.82 22.82

Corporate Dividend Tax 10.77 2.74 3.2 3.88

Per share data (annualised)
Shares in issue (lakhs) 652.1 652.1 652.1 652.1
Earning Per Share (Rs) 6.33 9.11 12.18 13.48
Equity Dividend (%) 800 150 175 175
Book Value (Rs) 32.68 38.41 46.64 55.95
Mar '09

12 mths

294.92
0
294.92
11.77
-8.67
298.02

0
4.81
13.2

172.37
34.45
6.94
0
231.77
Mar '09

12 mths

54.48
66.25
8.81
57.44
23.52
0
33.92
3.25
37.17
10.84
26.67
231.77
0
1.96

0.33
652.1
4.09
15
59.63
 Mar '05 Mar '06

12 mths 12 mths
Profitability Ratios Mar '05 Mar '06
1 Profit Margin Ratio = Profit After Tax/ Sales 20.9911055 21.19342298
2 Asset Turnover Ratio = Sales/Total Assets 0.92 1.12
3 Return on Assets =Profit Margin Ratio* Asset Turnover Ratio 19.3769353 23.72245289
4 Return on Equity = Profit After Tax /Avg. shareholder's Equity 3.16717791 4.556748466
5 Return On Net Worth=Profit After Tax / Net Worth 19.3778445 23.72340001

Liquidity Ratios Mar '05 Mar '06

1 Current Ratio = Current Assets / Current Liabilities 2.85385064 1.756306598
2 Quick Ratio=(Current Assets - Inventories)/ Current Liabilities 2.15752625 1.568402329
3 Debtor Turnover Ratio = (sales / Debtors) 3.67757009 3.804206242
4 Inventory Turnover Ratio = Cost of goods Sold / Inventories 8.24256389 24.12822719
5 Total Asset Turnover Ratio = Sales/ Total Assets 0.92310219 1.119330885

Solvency Ratios Mar '05 Mar '06

1 Debt to Equity Ratio= Total Debt / Shareholder's Equity 0 0
2 Interest Cover Ratio= PBIT / Interest Expense 30.5885167 29.00955414

Capital Market Ratios Mar '05 Mar '06

1 Earnings Per Share (EPS) 26.13 32.11
2 Dividend Per share= Equity Dividend/No. of shares 12.6406993 2.999539948
3 Operating Profit Per Share = Operating Profit / No. of shares 10.6272044 14.91642386
 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths

Mar '07 Mar '08 Mar '09
25.0196869 26.72888105 9.04313034
1.04 0.90 0.76
26.11282793 24.10229702 6.857980406
6.091257669 6.74309816 2.045245399
26.11454498 24.10097577 6.858156758

Mar '07 Mar '08 Mar '09

2.996348588 1.724354596 2.252926829
2.829113924 1.593634749 2.23097561
4.749700778 4.79967902 5.831916156
46.21106259 34.37513062 327.6888889
1.043691235 0.901732361 0.758363548

Mar '07 Mar '08 Mar '09

0 0 0
26.65207877 21.64724919 4.850170261

Mar '07 Mar '08 Mar '09

32.68 42.92 55.39
3.499463273 3.499463273 0.300567398
19.13050146 19.99386597 8.354546849
 RATIO ANALYSIS
PROFITABILITY RATIOS
A. Profit Margin Ratio

This represents the profit earned on the sales made and this must be high as it is good for the firm. In case of
Balaji Telefilms this ratio consistently increases from 2005 to 2008 before falling dramatically in 2009. This
alarming fall in the profits can be attributed to the dropping TRPs of their TV shows and increasing competition.

B. Asset Turnover Ratio

This represents how well the firm is utilizing its assets and it must be high for an efficient firm. However in the
present case this ratio has fallen over the last couple of years. This drop can be attributed to the falling sales of
the firm caused by the failure of various new projects and decrease in sales of previously successful ventures. So
although the total assets have been increasing over the years the firm needs to work upon increasing it sales for
improved efficiency.

C. Return on Assets

This represents the efficiency of firm to utilize it assets to earn profit as it is the ratio of PAT per unit of assets
and it must be high. The return on assets has fallen over the past two years owing to dramatic decrease in the
profit and it must be looked at with concern.

D. Return on Equity

This measures the efficiency with which shareholder's funds are employed into the operations of the firm. This
again rose consistently from 2005-2008 and then dropped dramatically in 2009 owing to sharp fall in profit. This
isn't good from the shareholder's point of view and they might lose their trust in the company leading to fall in
its share prices.

LIQUIDITY RATIOS
A. Current Ratio

It indicates the firms short term solvency position. A ratio of 2:1 is considered as ideal. If the ratio is less than
one the firm faces problems in meeting its short term obligations. As can be seen from the statistics the current
ratio increased in 2009 over 2008 and is well above the safety level. This is a good indicator in terms of the firms
solvency position

B. Quick Ratio

All the current assets can not be easily converted to cash like the inventory etc, hence, comes in the quick ratio
which gives a better picture of the liquidity position of the company. Ideally this should be 1:1. In the present
case the quick ratio is well above the ideal level. However one should take care of the fact that there should not
be too much excess of liquidity either which can be a concern of the firm.

C. Debtor Turnover Ratio

This measures the efficacy of a firm's credit and collection policyand shows the number of times each year the
debtors turns into cash so higher the ratio better it is. And in the present case the debtor turnover ratio has been
consistently increasing over the past 5 years thus reflecting efficient credity policy and collection systems. Also
the sales have been increasing.

D. Inventory Turnover Ratio

This represents how efficiently the company is converting its inventory into finished goods and this must be high.
The inventory turnover ratio has increased exponentially over the last year. This can be attributed to increase in
sales and a dramatic decrese in inventory. This reflects brilliant inventory management on part of the firm as
they have been able to keep up the sales while lowering down the inventory.

SOLVENCY RATIOS
A. Debt to Equity Ratio

This ratio gives a picture of the capital structure of the firm and this should not be too high as too large a debt in
ones capital structure leads to high risk. In the present case the debt to equity ratio is 0 as there is no debt in the
capital stucture. Thus the firm is relatively risk free. However the firm can include some debt in its capital
structure and avail of the benfits of debt.

B. Interest Cover Ratio

This reflects the ability of the firm to pay off the interests over its debt. Higher the ratio, easier it is for the firm to
raise debt as it gives assurance to the creditor of the worthiness of the firm to pay off the debt with interest. In
the present case the interest cover ratio has dropped significantly over the years.This is due to sharp fall in
profits on one hand and increasing interest expenses on the other. This is hurting the credit worthiness of the
firm and it might face difficulty in raising debt for new debt.

CAPITAL MARKET RATIOS

A. Earning Per Share

The EPS is basically a tool at the disposal of the investor to judge the performance of the firm and higher the EPS,
better it is. In the present case the EPS has consistenly increased over the years making the lucrative from
investment's point of view. This is good for the firm.

B. Dividend Per Share

This ratio indicates the amount of dividend per share and it is of great interest to the shareholder. The
shareholder on his/her part wants to see higher dividend per share but from the firm's perspective this should be
a balanced figure. In the present case the dividend per share has decreased over the years and this is not a good
indicator for the shareholders.