ZEE ENTERTAINMENT ENTERPRISE LTD.

Zee Entertainment Enterprises Limited is one of India's leading Television, media and
entertainment companies. It is amongst the largest producers and aggregators of Hindi
programming in the world, with an extensive library housing over 210,000+ hours of television
content. With rights to more than 3,500 movie titles from foremost studios and of iconic film
stars, ZEEL houses the world's largest Hindi film library.
Through its strong presence worldwide, ZEEL entertains over 959+ million viewers across 169
countries.
Pioneer of the television entertainment industry in India, ZEEL's well-known brands include Zee
TV, &TV, Zindagi, Zee Smile, Zee Anmol, Zee Cinema, &pictures, Zee Action, Zee Classic, Ten
Sports, Ten Cricket, Ten Action, Ten Golf, Zee Cafe, Zee Studio, Zee Khana Khazana, Zee
Salaam, Zing, ETC Bollywood and ZQ.

ZEEL HAS MANY 'FIRSTS' TO ITS CREDIT

G
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First listed media company in India.

First to launch a Hindi General Entertainment Channel in India - Zee TV.
First to launch a Hindi Cinema Channel in India - Zee Cinema.
First to corporatize the Hindi film industry with the costliest production and the highest
grossing Hindi movie in its time - 'Gadar - Ek Prem Katha'.
First to launch a 24 hour Hindi News Channel in India - Zee News, now operating as a
separate company called Zee Media Corporation Ltd (ZMCL)

HISTORY

The year 1992 ushered in an upheaval of sorts in the country. With the political, social and
economic landscape changing facades, an upsurge in the world of media and entertainment was
waiting to burst open. An upsurge that would result social drifts and impart new meaning to TV
viewing in India. Subhash Chandra, one of India's leading entrepreneurs, who sought to create a
revolution by facilitating the convergence of media and Communication with a mirror into the
common man's life and ways, created Zee Telefilms Limited in October 1992. This enterprise
was to act as the chief content provider for Zee TV - India's first Hindi satellite channel. Zee
Telefilms Limited (ZTL) is now known as Zee Entertainment Enterprises Limited (ZEEL).

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Very early in the aftermath of launching ZTL, Subhash Chandra entered into a joint venture with
the STAR group of companies. This pact was to augment television broadcasting in India and
deliver higher quality of programming content. In another development around the same time,
media mogul, Rupert Murdoch's News Corp Limited acquired the rights to distribute STAR's

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satellite TV content. To strengthen their network further, ZEEL and News Corp co-founded
Siticable, a leading cable MSO.

STRENGTHS

Leading broadcaster in India and overseas for South Asian content.

First mover advantage across genres.
Widest offering of channels by a single broadcaster in the country.
Across genres, our channels are either leaders or strong contenders for the leadership
Position.
Diversified revenue streams: advertising and subscription
Diversified customer base: across169 countries
Operating the largest pay TV distribution platform in the country, Zee Turner
Large network gives tremendous leverage with advertisers
Cost conscious approach towards business

STRATEGIES
Continue to run our business as best in class, with viewer satisfaction as the ultimate goal.
Enhance our leadership position in the genres we compete.
Continuous innovation to stay ahead of the curve and seize growth opportunities.
Invest in the business in a focused, disciplined way and achieve superior financial performance
To use the strong cash flows of our business to improve returns to shareholders reaffirm our
commitment to highest level of integrity and professionalism throughout our business.

MISSION & VALUES

"To become the world's leading global media company from the emerging Market. As a
Corporation, we will be driven by innovation & creativity and would focus on growth while
delivering exceptional value to our customers, our viewers and all our stakeholders."
Our Company's strategies are driven by the needs of the customer. Our success can be measured
by the satisfaction achieved by our customer.

EXCELLENCE
We accord a high premium to maintaining superlative standards throughout our Company. We
encourage our employees to come up with smarter ideas within the fastest possible time.

CREATIVITY
Key to our value system is innovation and originality. We recognize and have a high regard for
individual expression and creative freedom in our quest to provide customer satisfaction.

INTEGRITY
We observe strict ethical standards through editorial independence and creative expression, in
order to earn the trust of our viewers and subscribers.

GROWTH DRIVEN
We are committed to delivering consistent revenue and cash flow growth in order to provide our
shareholders a good return. Our objective is to grow our people, Market and businesses around
the world.

RATIO ANALYSIS

ZEE ENTERTAINMENT
ENTERPRISE LTD.

Return on Investment - ROI

A performance measure used to evaluate the efficiency of an investment or to compare the
efficiency of a number of different investments. ROI measures the amount of return on an
investment relative to the investments cost. To calculate ROI, the benefit (or return) of an
investment is divided by the cost of the investment, and the result is expressed as a percentage or
a ratio. The higher it will be, more it will be good for the company.
The return on investment formula: PAT/LTCE
ZEEL ROI: 8318/46281=0.179

Profit Margin

The profit margin is an accounting measure designed to gauge the financial health of a business
or industry. In general, it is defined as the ratio of profits earned to total sales receipts (or costs)
over some defined period. The profit margin is a measure of the amount of profit accruing to a
firm from the sale of a product or service.

The Profit Margin Formula: PAT/NET SALES

ZEEL PROFIT MARGIN: 8318/26535=0.2276

Investment Turnover Ratio

The term investment turnover ratio describes a calculation analysts can use to determine how
efficiently a company's debt and equity produces revenues. Higher investment turnover ratios
equate to more efficient companies.
Investment Turnover Ratio = SALES/LTCE (TIMES)
ZEEL INVESTMENT TURNOVER RATIO: 34262/46281= 0.71

Inventory Turnover Ratio

The inventory turnover ratio is an efficiency ratio that shows how effectively inventory is
managed by comparing cost of goods sold with average inventory for a period. This measures
how many times average inventory is "turned" or sold during a period.
This ratio is important because total turnover depends on two main components of performance.
The first component is stock purchasing. If larger amounts of inventory are purchased during the
year, the company will have to sell greater amounts of inventory to improve its turnover.
The second component is sales. Sales have to match inventory purchases otherwise the inventory
will not turn effectively.
INVENTORY TURNOVER RATIO: SALES/AVERAGE INVENTORY (TIMES)
ZEEL INENTORY TURNOVER RATIO: 34262/11636.5= 2.944

Average Collection Period

Average collection period is computed by dividing the number of working days for a given
period (usually an accounting year) by receivables turnover ratio. It is expressed in days and is
an indication of the quality of receivables.
Like receivables turnover ratio, average collection period is of significant importance when used
in conjunction with liquidity ratios.
A short collection period means prompt collection and better management of receivables. A
longer collection period may negatively affect the short-term debt paying ability of the business
in the eyes of analysts.
Average collection Period: (Debtors*300)/Sales (net) Days
ZEEL AVERAGE COLLECTION PERIOD: (8318*300)/34262= 72.83 days

CURRENT ASSETS TO TOTAL ASSETS

This ratio represents the structure of assets and the amount in form of current assets per each
pound invested in assets. Current assets are important to businesses because they are the assets
that are used to fund day-to-day operations and pay on-going expenses and include cash,
accounts receivable, inventory, securities, prepaid expenses and other liquid assets that can be
readily converted to cash.
ZEEL CURRENT ASSETS TO TOTAL ASSETS:
38739/55983: 0.691

CURRENT RATIO
The current ratio is a financial ratio that measures whether or not a firm has enough resources to
pay its debts over the next 12 months. It compares a firm's current assets to its current liabilities.
It is expressed as follows:

The current ratio is an indication of a firm's market liquidity and ability to meet creditor's
demands. Acceptable current ratios vary from industry to industry and are generally between 1.5

and 3 for healthy businesses. If a company's current ratio is in this range, then it generally
indicates good short-term financial strength.
ZEEL CURRENT RATIO: 38739/9702= 3.992

CURRENT LIABILITIES TO TOTAL LIABILITIES

RATIO
The Current to Total Liabilities ratio measures the percentage of Total Current Liabilities to Total
Liabilities, a useful measurement when reviewing a companys debt structure.
An increasing Current to Total Liabilities ratio is usually a negative sign, showing the companys
proportion of Total Current Liabilities are increasing compared to its Total Liabilities.
ZEEL RATIO: 9702/55983= 0.173

ACID TEST RATIO

In finance, the Acid-test or quick ratio or liquid ratio measures the ability of a company to use
its near cash or quick assets to extinguish or retire its current liabilities immediately. Quick
assets include those current assets that presumably can be quickly converted to cash at close to
their book values.
Generally, the acid test ratio should be 1:1 or higher, however this varies widely by industry. In
general, the higher the ratio, the greater the company's liquidity (i.e., the better able to meet
current obligations using liquid assets).

ZEEL ACID TEST RATIO: (38739-12071)/9702= 2.74

DEBT-EQUITY RATIO
The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion
of shareholders' equity and debt used to finance a company's assets. Closely related to
leveraging, the ratio is also known as Risk, Gearing or Leverage. The two components are often
taken from the firm's balance sheet or statement of financial position.

DEBT EQUITY RATIO= (LONG TERM DEBT/NET WORTH)

ZEEL DEBT EQUITY RATIO: 12/45875= 0.00026

INTEREST COVERAGE RATIO

Times interest earned (TIE) or interest coverage ratio is a measure of a company's ability to
honor its debt payments. It may be calculated as either EBIT divided by the total
interest payable.

Times Interest Earned or Interest Coverage is a great tool when measuring a company's ability to
meet its debt obligations. When the interest coverage ratio is smaller than 1, the company is not
generating enough cash from its operations EBIT to meet its interest obligations.
ZEEL INTEREST COVERAGE RATIO: (8318+4185+18)/18= 695.61

RESERVES AND SURPLUSES TO NET WORTH

It is the ratio of reserves and surpluses to net worth of the company.
ZEEL RESERVES AND SURPLUSES TO NET WORTH: 24723/45875= 0.538

FIXED ASSETS TO NET WORTH RATIO

Fixed assets to net worth is a ratio to measure the solvency of a company. This ratio indicates the
extent to which the owners' cash is frozen in the form of fixed assets, such as property, plant, and
equipment, and the extent to which funds are available for the company's operations (i.e. for
working capital).

Fixed assets to net worth ratio 0.75 or higher is usually undesirable, as it indicates that the firm is
vulnerable to unexpected events and changes in the business climate
Fixed assets to Net Worth = Net fixed assets / Net worth
ZEEL RATIO: 3814/45875= 0.083

FIXED ASSETS TURNOVER

Fixed-asset turnover is the ratio of sales (on the profit and loss account) to the value of fixed
assets (on the balance sheet). It indicates how well the business is using its fixed assets to
generate sales.
The higher the ratio, the better, because a high ratio indicates the business has less money tied up
in fixed assets for each unit of currency of sales revenue. A declining ratio may indicate that the
business is over-invested in plant, equipment, or other fixed assets

ZEEL RATIO: 34262/3814= 8.98

Return on equity (ROE)

It measures the rate of return for ownership interest (shareholders' equity) of common
stock owners. It measures the efficiency of a firm at generating profits from each unit of
shareholder equity, also known as net assets or assets minus liabilities. ROE shows how well a
company uses investments to generate earnings growth. ROEs 15-20% are generally considered
good.

ROE = Earnings per Share / Market Price per share**

RETURN ON EQUITY

2015

2014

ZEEL

7.15/342=2.09%

7.94/272=2.9%

STNL

18.71/440=4.25%

18.11/401=4.52%

** Here market Price of the companies are taken as on 31 st March 2015

SN. RATIO

2015

2014

Remark

RETURN ON INVESTMENT (PAT/LTCE)

0.179

0.193

Higher is bett

PROFIT MARGIN (PAT/NET SALES)

0.2276

0.2368

Higher is bett

INVESTMENT TURNOVER (SALES/LTCE)

(TIMES)

0.74

0.769

Higher is bett

INVENTORY TURNOVER (SALES/AVERAGE

INVENTORY)

2.944

2.895

Higher is bett

AVERAGE COLLECTION PERIOD

(DEBTORS*300/SALES(NET)DAYS)

72.83

77.83

Less days is b

CURRENT ASSETS TO TOTAL ASSETS

0.691

0.611

Higher is bett

CURRENT RATIO (CURRENT ASSETS/CURRENT

LIABILITIES)

3.992

4.0065

Higher is bett
ratio: 2:1

CURRENT LIABILITIES TO TOTAL LIABILITIES

RATIOS

0.173

0.1525

Lower is bette

ACIID TEST RATIO (CURRENT ASSETS

INVENTORY/CURRENT LIABILITIES)

2.74

2.45

Higher is bett
Ratio is1:1

10

DEBT EQUITY RATIOS

(LONG TERM DEBT/NETWORTH)

0.00026

0.000403

Lower is bette
Ratio 2:1

11

INTEREST COVERAGE RATIOS

(PBIT/INTEREST)TIMES

695.61

173.63

Higher is bett

12

RESERVES AND SURPLUSES TO NET WORTH

0.538

0.467

Higher is bett

13

FIXED ASSETS TO NET WORTH RATIOS

0.083

0.091

Lower is bette

14

FIXED ASSETS TURNOVER (SALES/FA)(TIMES)

8.98

8.48

Higher is bett

ZEE ENTERTAINMENT ENTERPRISE LIMITED

BALANCE SHEET
AND
STATEMENT OF PROFIT AND LOSS

HEALTH OF ZEE ENTERTAINMENT

ENTERPRISES LIMITED
The Company had a successful FY2015 with strong financial results, reflecting our focus on delivering
superior performance. During FY2015, Indian economy witnessed signs of optimism due to stable central
government and improved macro-economic conditions

Below are the operational highlights:

Zee Marathi increased its market share to more than 50% during the year and maintained its
leadership position throughout the year.
The Zee Cinema cluster continued to have a leading share in the movie genre in HSM with an
average weekly channel share of 32.3% amongst all Hindi Movie Cluster.
Zee TV continued to hold the second spot in the Hindi GEC genre with an average weekly
channel share of 18.6% amongst the top 6 GECs.
The Companys programming reaches out to over 959 million viewers across 169 countries
globally.

Below are the financial highlights:

The profit after tax of the company is increased from Rs. 7,723 Millions in FY14 to Rs. 8,318
Millions in FY15 which shows a 7.8% Growth.
Earnings per shares decreased From Rs. 7.94 in FY14 to Rs. 7.15 in FY15 as Dividend on
Preference shares increases from Rs. 101 millions in FY14 to Rs. 1,453 Millions in FY15 which
shows a huge increase in Preference shareholders Income.
To confirm the Dividend paid on the Preference Shares of the Company for the financial
year/period ended March 31, 2015.
To declare Dividend of Rs 2.25/- per Equity share for the financial year ended March 31, 2015.

INVESTMENT DECISION
The Performance of ZEE is quite good. Profitability of company increases during the financial
year 2014-15.

As we compared with some important ratios, we come on the following decisions:-

Ratios
Earning Yield
Return on Investment

ZEE
2.09%
17.9%

Profit Margins

22.76%

Profit Margins of ZEE is good.