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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

12 mths 12 mths 12 mths

Income
Sales Turnover 196.75 280.37 317.47
Excise Duty 0 0 0
Net Sales 196.75 280.37 317.47
Other Income 4.37 8.15 8.3
Stock Adjustments 16.58 -12.25 -4.75
Total Income 217.7 276.27 321.02
Expenditure
Raw Materials 0 0 0
Power & Fuel Cost 2.29 2.73 3.16
Employee Cost 5.4 7.17 11.57
Other Manufacturing Expenses 123.37 144.35 154.96
Selling and Admin Expenses 9.5 10.19 12.62
Miscellaneous Expenses 3.47 6.41 5.66
Preoperative Exp Capitalised 0 0 0
Total Expenses 144.03 170.85 187.97
Mar '05 Mar '06 Mar '07

12 mths 12 mths 12 mths

Operating Profit 69.3 97.27 124.75


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

Corporate Dividend Tax 10.77 2.74 3.2


Per share data (annualised)
Shares in issue (lakhs) 652.1 652.1 652.1
Earning Per Share (Rs) 6.33 9.11 12.18
Equity Dividend (%) 800 150 175
Book Value (Rs) 32.68 38.41 46.64
Mar '08 Mar '09

12 mths 12 mths

328.97 294.92
0 0
328.97 294.92
16.1 11.77
2.71 -8.67
347.78 298.02

0 0
3.75 4.81
13.62 13.2
164.2 172.37
13.62 34.45
6.11 6.94
0 0
201.3 231.77
Mar '08 Mar '09

12 mths 12 mths

130.38 54.48
146.48 66.25
6.18 8.81
140.3 57.44
12.7 23.52
0 0
127.6 33.92
0.35 3.25
127.95 37.17
40.55 10.84
87.93 26.67
201.31 231.77
0 0
22.82 1.96

3.88 0.33

652.1 652.1
13.48 4.09
175 15
55.95 59.63
Mar '05 Mar '06

12 mths 12 mths
Profitability Ratios Mar '05 Mar '06
1 Profit Margin Ratio = Profit After Tax/ Sales 20.99 21.19
2 Asset Turnover Ratio = Sales/Total Assets 0.92 1.12
3 Return on Assets =Profit Margin Ratio* Asset Turnover Ratio 19.38 23.72
4 Return on Equity = Profit After Tax /Avg. shareholder's Equity 3.17 4.56
5 Return On Net Worth=Profit After Tax / Net Worth 19.38 23.72

Liquidity Ratios Mar '05 Mar '06


1 Quick
Current Ratio = Current
Ratio=(Current Assets
Assets / Current Liabilities
- Inventories)/ Current 2.85 1.76
2 Liabilities 2.16 1.57
3 Debtor Turnover Ratio = (sales / Debtors) 3.68 3.8
4 Inventory Turnover Ratio = Cost of goods Sold / Inventories 8.24 24.13
5 Total Asset Turnover Ratio = Sales/ Total Assets 0.92 1.12

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 30.59 29.01

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 12.64 3
3 Operating Profit Per Share = Operating Profit / No. of shares 10.63 14.92
Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths


Mar '07 Mar '08 Mar '09
25.02 26.73 9.04
1.04 0.90 0.76
26.11 24.1 6.86
6.09 6.74 2.05
26.11 24.1 6.86

Mar '07 Mar '08 Mar '09


3 1.72 2.25
2.83 1.59 2.23
4.75 4.8 5.83
46.21 34.38 327.69
1.04 0.9 0.76

Mar '07 Mar '08 Mar '09


0 0 0
26.65 21.65 4.85

Mar '07 Mar '08 Mar '09


32.68 42.92 55.39
3.5 3.5 0.3
19.13 19.99 8.35
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.