Financial Accounting Report: Financial Analysis of Media & Entertainment Industry

FINANCIAL ACCOUNTING REPORT
Guide: Prof. (Dr.) Ashish Kumar
FINANCIAL ANALYSIS OF MEDIA & ENTERTAINMENT

INDUSTRY
Roll Number Name Company
MBA21081 Ankit Kumar Zee
MBA21086 Athul A S Network18
MBA21099 John VL Fanai Sony Pictures Network
MBA21258 Darshika Dish TV
MBAA21012 Arunima Singh Sun TV Network
MBAA21013 Ashrika Gupta PVR

Table of Contents
1. Industry Overview………………………………………………………………………………….2
2. Company Overview………………………………………………………………………..….....3
3. Ratio Analysis
a. Liquidity ratio……………………………………………………………………………….6
i. Current ratio………………………………………………………………………6
ii. Quick ratio…………………………………………………………………….……
8
b. Profit margin ratios
i. EBITDA margin.....................................................................10
ii. Net Profit margin.................................................................12
iii. Asset Turnover ratio............................................................15
c. Insolvency ratio
i. Debt/Equity ratio................................................................17
ii. Debt Capitalization ratio.....................................................20
iii. Interest coverage ratio.......................................................22
iv. Total debt service ratio.......................................................24
d. Valuation ratio
i. Earnings per share..............................................................26
ii. Dividend per share..............................................................28
iii. Retention ratio....................................................................30
iv. Price to earnings ratio.........................................................32
v. Price to book value ratio.....................................................34
e. Overall Performance ratio
i. Return on total assets ratio.................................................36
ii. Return on equity ratio.........................................................38
iii. Return on capital employed ratio.......................................40
iv. Equity Turnover ratio..........................................................42
4. 5 factor DuPont analysis..........................................................................44
5. References...............................................................................................47
6. Appendix..................................................................................................48
1
INDUSTRY OVERVIEW
The Indian Media and Entertainment industry is one of the fastest growing
sectors in the recent times. There are approximately 900 satellite TV channels,
6000 multi system operators more than 2500 multiplexes and more than 570
million internet users. The industry is shifting towards digitation and under
continuous innovation and transformation to cater the consumer demand.
Media and entertainment industry continue to grow at a faster than the
overall GDP primarily due to the growth of Subscription business models and
its content productions.
Market Scenario:
M&E industry is expected to have 0.4% of the GDP ratio by 2024 with a CAGR
of 39.3% while multiplex industry is expected to grow at 5.8% and to surpass
4500 screens by 2024. With increased demand for digital media, it grew at 31%
reaching a valuation of US $49.43 billion and is expected to have a CAGR of
18.2% by 2028. TV industry is growing at 6.5% reaching 788 billion in 2019 in
which general entertainment and movie channel occupied 74% viewership.
There was a significant growth of viewership among news channels owning up
to 9%.
COMPANY OVERVIEW
PVR Company
PVR Limited (PVR) is an India-based film display organization. The Company is
occupied with the matter of film display and creation and works cinema
circuits across India. It disseminates Hollywood, Bollywood, and local regional
movies. The Company has a process of conducting the movie distribution
business through PVR Pictures Ltd. The Zea Maize business (in-house
operation) of PVR Limited is engaged in manufacturing, packaging, and selling
gourmet popcorn under the 4700BC brand. The products are offered on
electronic commerce portals with a wide range such as chocolate, butter, mix
etcetera. The Company's brands incorporate several versions such as PVR
DIRECTOR'S CUT, PVR PICTURES, PVR IMAX, PVR 4DX, PLAYHOUSE, PVR GOLD,
PVR P[XL], PVR ONYX, and PVR Nest. The Company works a film organization of
around 845 screens across more than 176 properties in approximately 71 cities
in India and Sri Lanka. The subsidiaries are PVR Pictures Limited, Zea Maize
2
Private Limited, P V R Lanka Limited, and SPI Entertainment Projects (Tirupati)
Private Limited which offer various services to its customers.
Zee Entertainment
Zee Entertainment Enterprises Limited is in the media and entertainment
sector involved in providing broadcasting services. The Company works
through the Content and Broadcasting segment of media and entertainment
companies. It offers content in multiple languages and offers approximately 38
worldwide and over 30 homegrown channels providing entertainment to
global audience. The Company has a library, housing, and providing more than
222,703 hours of TV content. The Company holds rights to roughly 3,820 film
titles. The Company's brands include various versions depending on the type of
content they provide to customers are Zee TV, Zee Cinema, Zee Action etc. The
Company has a foothold in the local language space with channels, for
example, Zee Marathi, Zee Talkies, Zee Bangla etc. Its top-quality content
offerings include Zee TV HD, Zee Cinema HD, &tv HD etc. The Company
operates in more than 170 nations.
Network 18
Network18 Media and Investments Limited is a media and diversion
organization. The Company is occupied with the commercial, advertisement
and sponsorship, magazines promotion, and mobile short messaging and
versatile ad. Its various segments are the operation of media tasks, film
creation, promotion and distribution, and others. It has interests in TV, the
Internet, filmed entertainment, web-based business, magazines, mobile
content, and partnered organizations. Its computerized substance and
business section incorporate a differentiated arrangement of brands obliging a
scope of premiums to serve the customer's interests and services, including
news and entertainment, markets and finance, internet shopping and tagging,
and mobile phone services and applications. Its digital content and business
segment incorporate Moneycontrol.com, News18.com, Pradesh18.com, and
In.com. It additionally works with digitally commerce brands, including
HomeShop18, burrp.com, and bookmyshow.com, and distributes Forbes India.
It operates news channels, for example, CNBC-TV18, CNBC Bajar, and CNBC-
TV18 Prime HD.
3
Sun TV
Sun TV Network Limited is occupied with providing broadcasting services to
the customers. The Company works through the Media and Entertainment
section. It is occupied with creating and broadcasting satellite TV and radio
programming in the regional languages of South India. It works TV slots in
around four South Indian dialects to viewers in India, and furthermore to
viewers worldwide. It works on the Sun TV channel. Its other satellite positions
include Surya TV, Gemini TV, and Udaya TV. It has a presence across different
sorts, for example, general amusement, films, music, news, children, activity,
and life.
Dish TV
Dish TV is one of India's largest and among the sector's largest direct-to-home
(DTH) Company with a subscriber base of more than 29 million. Dish TV has on
its platform 655+ channels & offerings which includes forty audio channels and
70 HD channels. Dish TV leverages a couple of satellite tv for pc systems which
includes NSS-6 Asia sat-five SES-eight GSAT-15 and ST-2 and has a bandwidth
capability of 1422 MHz, the biggest held via way of means of any DTH
participant withinside the country. The Company has a sizable distribution
community of over 4000 distributors & round 400000 sellers that span
throughout 9450 cities withinside the country. Dish TV is hooked up with its
pan-India purchaser base through call-centers which are unfolded throughout
22 towns and are prepared to deal with purchaser queries 24X7 in 12 unique
languages. As on March 31, 2019, the Company has 1 fully owned subsidiary
and a couple of subsidiary companies. Adding to the sector magnificence TV
viewing experience, Dish TV offers freedom to its clients to choose channels in
their choice, personalize their personal leisure programs and pay only for the
same. As a plethora of channel packs are accessible, the clients have the loose
hand to construct their package deal to healthy their flavor and budget. Upping
the leisure quotient, Dish TV additionally offers its clients with capabilities like
radio channels, digital software guide, parental lock, capability for extra than
500+ channels and films on demand
4
Sony Pictures Limited
Sony is a multinational company selling information and entertainment to
customers. The company sells as well as produce electronic items that is meant
for entertainment like movies, games, music and more. The company is
founded by two Japanese men, and they still follow their Japanese roots in the
corporation and in their way of doing business. One of the reasons for their
popularity and trust given by their customers towards the brand.
The problem faced by Sony is their inability to cope with changing business
environment. The business environment where they open their branches
seems to have a hard time adjusting. However, with great management and
with much experience it is a sure thing that they will turn the odds in their
favor.
The Ratio Analysis of the company shows that the company is working for long
term so there is no need to meet their short-term obligations. The company
has formed new policies after thorough analysis of their financial standings
with ratios which focused more on overall profitability.
The company is also predicted to increase its brand image and overall sales by
their partnership with Marvel for the upcoming movie of Spiderman. Sony is
upping their game in the movies sector, and they are widely successful so far.
5
RATIO ANALYSIS
LIQUIDITY RATIOS
Current Ratios
The current ratio is used to measure the ability of the company to pay its
short-term debts or loans
A lower ratio than the industry average shows that the company is at a high
risk of distress while higher indicates that the company is not managing its
assets efficiently.
Current ratio = Current Assets / Current Liabilities
Industry Standard: - 1.7
Current Rati o
Zee Network18 Sony Pictures Network
Dish TV Sun TV Network PVR
8.06
9
7.37
6.29
7
7
6.3
6
4.87
5
3.98
3.94
4.2
3.7
4
3
2
0.92
0.92
0.89
0.86
0.83
0.79
0.78
0.76
0.64
0.58
0.9
0.46
0.43
0.37
0.29
0.27
0.23
0.19
1
0.1
0
2017 2018 2019 2020 2021
PVR
The current ratio of the company has been less than 1 for all the years with the
financial year 2018-19 having the least ability to pay short term liabilities.
Though the current assets for the company have been increasing for all the
years, the current liabilities have increased much more. The company has seen
a 33% increase in the current assets in the financial year 2020-21 and a
considerable decrease in current liabilities, hence the ratio has seen an
upward trend for the year 2021.
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Sun TV
The current ratio should be ideally more than 2 and the current assets should
be more than twice the current liabilities. In this case the current ratio is totally
acceptable as it is much more than 2 but there has been a slight decrease in
the value of current ratio from 2017 to 2021 though the value of current assets
has increased but it is overpowered by the increase in the value of current
liabilities.
Dish TV
The current ratio is less than 1 for all the years which means that the Company
does not have sufficient assets to meet its current liabilities. The Current ratio
of Dish TV is fluctuating over the years. Though both current assets and current
liabilities increased from 2017 to 2018 but increase in current liabilities was
111% as compared to current assets which was 76%. In 2019, it increased
because current liabilities increased by just 18% whereas current assets
increased by 68%. Similarly, in 2020, current assets decreased by 67% whereas
current liabilities decreased by just 5% thus resulting in the overall decrease in
the current ratio.
Sony
The current ratio of a corporation like Sony should be no less than 1. But the
value has been less than 1 as we can see. We can also see that it has been
consistent throughout the 4 years prior to 2021 due to a close relationship
with the current assets and liabilities. In 2021 the current liabilities increased
by a huge amount as compared to current assets which are unable to cope up
due to paying off liabilities.
Network18
It is seen that the current ratio of Network18 has been increasing for the past 5
years from 0.29 in 2017 to 0.9 in 2021. There has been a decrease of assets by
7
a small margin in 2021 but the margin of decrease for liabilities was much
greater because the company was able to alleviate some of its short-term
borrowings by 26%. But it’s still less than the industry standard.
Zee
The current ratio of the company is above the industry standards and shows a
constant trend over the years. There are not any significant changes in the
current assets and liabilities of the company.
Quick Ratio
The Quick ratio is used to measure the ability of a company to pay off its short-
term loans with its most liquid assets. A higher ratio means a higher position of
the company to pay off its short-term obligations.
Quick Ratio = (Current Assets - Inventory) / Current Liabilities
Industry Standard = 1.5
Quick Rati o
8.06
9
7.37
8
6.29
7
7
6.3
6
5
3.62
4
3.2
2.08
2.07
3
1.86
2
0.92
0.86
0.86
0.83
0.82
0.71
0.66
0.64
0.56
0.55
0.46
0.43
0.34
0.29
0.27
0.22
0.18
0.09
0.4
1
0
2017 2018 2019 2020 2021
PVR
The business does not seem to be healthy since the quick ratio is less than 1 for
all the years. It decreased in 2018-2019 to 0.34 but then started getting stable
when the current assets increased by 91% in 2019-2020 and further stabilized
8
in 2020-2021 when the current assets increased but 32% and the current
liabilities decreased for the same year.
Sun TV
The decline in quick ratio over the years 2017-18 indicates that SUN TV has
lower capabilities to honor its short-term obligations using highly liquid assets.
This situation posed a problem as it implies that the company is unable to sell
its services efficiently. The increase in quick ratio in the year 2019 depicts
increase in cash receivables and rise in non-current assets. But it decreased
again over the years 2020-21.
Dish TV
Since the Company’s quick ratio is less than 1 for the given years, it indicates
financial difficulty. This means that for every Rs. 1 of current liabilities, the
availability of quick assets is less than 1. Though, the quick ratio increased in
the year 2019 but it is still less than 1 and the industry standard.
Sony
The Quick Ratio like the Current Ratio has been consistent although it is far
away from the industry standard. It indicates that Sony is unable to honor its
short-term obligations using liquid assets. The decrease in quick ratio from
0.82 to 0.55 in 2020-2021 signifies that due to the pandemic the company is
having a difficult time with liquidity overall.
Network 18
There has been a drastic fall in the ability of the company to pay off its short-
term debts by 30%. The main reason being the rapid increase in the inventory
of the company by 196%. This has caused the liquid assets to decrease. The
company is still short of the industry standard.
Zee
9
The company shows a decreasing trend in its quick Ratio as it has increased its
inventory by more than 200% in 2021 as compares to 2017. Although showing
a decreasing trend the company is above the industry standard and data
obtained signifies that the company has enough funds and assets to pay off its
outstanding obligations in case it must liquidate itself on the current date.
PROFIT MARGIN RATIOS

EBITDA Margin
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and
Amortization
It is a measure of the company’s profit via operations to its revenue. This is
used for relative comparison between two companies in the same industry.
EBITDA Margin = EBITDA / Sales
Industry-standard: - 24.3%
EBITDA Margin
70.67%
69.11%
68.71%
68.27%
67.10%
59.37%
35.24%
34.55%
34.47%
33.71%
33.47%
30.49%
30.35%
29.23%
28.99%
29.08%
24.32%
24.24%
23.37%
22.09%
18.85%
17.08%
16.22%
13%
12%
10%
8%
4%
2017 2018 2019 2020 2021

-241.29%
10
Zee
The EBITDA margin in FY2021 of the company shows a decrease over the
previous year’s financial years. This was because of the increase in operational
cost by more than 450% and decrease in companies’ revenue by 6%.
Network18
There has been a steady increase showcased by the company from its lowest in
2019 to its highest in 2021 in the last five years. But this increase has come at a
cost. The sales of the company have gone down by 12% in 2021. The EBITDA
has gone up because the cost of materials consumed has gone down by 8%.
Thus, the consecutive increase and decrease in EBITDA and sales respectively
have caused the increase in the EBITDA margin. The company shows good
performance when compared across the industry sector as it has a higher
value than the industry standard.
Sony
The EBITDA margin has increased over the years from 4% in 2017 to an all-time
high of 13% in 2021. This lower EBITDA margin after comparison with other
companies shows that the company is focused more on volume growth to
increase revenues. Compared to other companies we can see that they
operate more efficiently and maximize their profitability. However, goals differ
for the companies.
Dish TV
EBITDA Margin has constantly increased from 2018 to 2020 indicating that the
company has fewer operating expenses and higher earnings, which shows that
the company can pay its operating costs and still have decent amount of
revenue leftover. Increasing EBITDA margin is a good sign for the Company
because it indicates that the company can generate more profit without
considering the variables such as depreciating assets, taxes and any costs
associated with financing that the company may be incurring.
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Sun TV
The EBITDA margin has shown a slight increase over the years 2017-19 as the
expenses have been quite less as compared to the Sales which means the
company was able to increase its efficiency slightly but in the years 2020-2021,
it has shown an irregular pattern and it first decreased by 3 percentage points
and then increased by 1 percentage point. This is because the expenses first
decreased and then increased in 2021 while the sales decreased for both the
years.
PVR
There has been a constant increase in the EBITDA margin of the company from
the financial years from 2016-2017 to 2019-2020. But the decrease in the
margin has been drastic for the financial year 2020-2021. The sales of the
company have been seeing an increase for the years but a huge downfall in
financial year 2020-21 by 91.8%. Whereas the decrease in selling general and
admin expenses has been by 58.21 %. So, the effect on the year has been
exponential and we see a negative EBITDA for the year 2020-2021.
Net Profit Margin

The net profit margin is used to measure how much net income is generated as
a percentage of revenue. A more simplified explanation would as the amount
of profit generated from every 100 rupees collected as revenue. Investors use
this margin to analyze how the company is performing with regards to its
profit.
Net Profit Margin = Net Income / Sales
12
Net Profi t Margin
43.97%
36.76%
35.79%
35.83%
35.37%
33.35%
28.32%
20.74%
19.30%
19.41%
19.15%
17.08%
11.86%
11.56%
11.20%
9.40%
7.50%
6.40%
6.24%
6.15%
5.34%
4.52%
3.59%
1.70%
0.80%
0.37%
2017 2018 2019 2020 2021
-0.03%
-2.14%
-267.06%
Network18
In 2021, Net profit margin of Network 18 has increased by 45% compared to
2020, mainly due to the increase in the net income by 28%. It has shown a
steady increase in terms of the Net Income of the company but the significant
jump in 2021 is majorly due to decrease in revenue from operations or sales by
12%. The rise in 2021 for the net income is also because of the decrease in the
cost of materials consumed which was at its highest in 2019 but decreased by
almost 25% by 2021.
Dish TV
The Net Profit Margin for 2018 and 2019 is negative which indicates that there
is an overall loss with total sales achieved. It indicates that the company is not
effective at converting sales into actual profit. In 2020, though the net profit
13
margin has increased because of an increase in profit but the sales decreased
by 43%.
Sony
The Net Profit Margin for the year 2019 is higher than all the years due to
overall increase in revenue and net profit for the year. The operating expenses
and overhead costs are being maintained in a balanced manner. We see a
decline in 2020 but increased again in 2021 attributed to a healthy
maintenance of inventories.
Sun TV
The Net Profit Margin has shown a major rise over the years as and this due
the increase in profit levels and portrays healthy maintenance of inventory and
decline in impairment losses by SUN TV. Healthy net profit margin also
indicates increase in overall profit and decrease in net expenses.
Zee
The net profit margin for FY2021 is higher than FY2020 but there is an overall
decrease in the net profit margin of the company by approximately 22%
points. There is more than 120% of increase in the D&A and an increase of
about 35% in the operational cost of the company as compared to FY2017
which is combinedly decreasing the net profit margin of the company.
PVR
The Net Profit Margin for the company has been steady for three financial
years from 2016-2017 to 2018-2019. Then it decreased by 87 % for the
financial year 2019-2020 because the provision for bad debts and the expense
for depreciation and amortization had increased. Also, the net interest expense
had increased by approximately 400% for the financial year 2019-20, hence we
see a sudden drop. Furthermore, due to the initial low sales for the company in
14
the financial year 2020-2021, the net profit margin of the company is low. And
the expenses could not be ignored, and they had been made, which caused the
net profit margin to decrease more.
Asset Turnover Ratio

Asset Turnover ratio is used to measure the value of the revenue of the
company with respect to its assets. It is used as an indicator on how well the
company can convert its assets to generate revenue.
The higher the ratio, the more efficient the company can convert its assets to
income.
Asset Turnover ratio = Sales / Total Assets
Asset Turnover Ratio

1.2
0.8
0.6
0.4
0.2
0
2017 2018 2019 2020 2021

15
Zee
The asset turnover ratio for the company has not changed significantly during
the last 5 years but there was a drop in the FY2021 compared to the previous
year because of the drop in revenue generated by the company.
Network18
A significant jump has happened in Asset turnover ratio for Network18 from
the year 2018 to 2019. Even though the total assets have increased in the
period by 12.5%, there was a significant jump in terms of revenue or sales by
178.20%. This huge jump has caused the asset turnover ratio to increase by
this much.
Sony
The asset turnover ratio is maintained for the past 4 years but in 2021 there is
a drastic decrease due to the company’s inability to utilize its assets efficiently.
The company still recovering from the pandemic indicates that it was
struggling as it is evident from the decline in revenues as well. It can also be
said that some of the assets remained idle during pre-covid.
Dish TV
Asset Turnover ratio is highest in the year 2017 because the company
generated the highest revenue with least number of assets. An ATR of 0.74
means an asset is churned 0.74 times to make sales happen. The ratio
decreased in the following years because of the increase in current assets.
Sun TV
The asset turnover ratio has decreased over the year except 2019. Decrease in
asset turnover ratio means that the company has huge assets but is not able to
utilize its assets efficiently and so there is not significant increase in the sales.
In 2019 the sales have increased significantly as compared to the total assets
16
and so the value of ATR increased but again the sales decreased significantly in
2020-21 but the assets increased so the ATR again fell which means that the
company failed again in the proper utilization of its assets.
PVR
The Asset Turnover Ratio for the company is the maximum for the financial
year 2017-2018. This shows that the company has been most efficient in using
its assets to generate revenue for this financial year. Then we see a huge
decrease in the year 2019-2020 because the total assets of the company have
increased by 92 % whereas the revenue has remained steady in its growth.
Hence, we see a large difference. In the financial year 2020-2021, though the
total assets have not seen much difference, but the current assets have
increased, and the sales have gone down by 91 %, so the Asset Turn Over Ratio
is negligible for the year 2020-2021.
INSOLVENCY RATIO
Debt/ Equity Ratio

The debt/Equity ratio is used to calculate the weight of total debt and financial
liabilities of a company against its total equity. This ratio also suggests whether
the company’s capital structure is tilted towards debt or equity financing.
Debt/ Equity Ratio = Total Debt / Equity
17
Debt / Equity Rati o
4.36 Dish TV Sun TV Network PVR
3.42
2.59
1.01
0.95
0.85
0.81
0.77
0.65
0.64
0.62
0.55
0.55
0.45
0.39
0.38
0.38
0.37
0.31
0.15
0.14
0.12
0.12
0.09
0.06
0.05
0.04
0.04
0.04
2017 2018 2019 2020 2021
Zee
The D/E ratio indicates the amount of debt the company has to pay for every 1
Rs. in equity and the company has a very low debt equity ratio and is only
showing a decreasing trend.
Network18
The Debt-to-equity ratio increased from the year 2017 to 2020 by an average
of 31% but then suddenly dropped down by 37% in the year 2021. This is
because the company has paid a significant amount of its debt by almost 26%.
In the year 2020, the company had more debts than its equity, which
Network18 was to turn around by paying off its short-term debts. Now the
company is titled more towards equity financing.
Dish TV
Debt to Equity ratio in 2017 is too high because total equity is too low as
compared to the other years. The ratio is declining which is a good sign for the
company. The reason for declining ratio is a significant increase in total equity
which is 1597% which in turn is because of an increase in other equity which is
approximately 1564% and equity attributable to owners of holding company.
18
Other equity increased because of the amount transferred from securities
premium which is Rs. 154340. A decreasing D/E ratio indicates that the amount
of debt the company must pay for every 1 Rs. in equity is decreasing over the
time.
Sun TV
It is being observed that over the years, for SUN TV debt to equity ratio has
been increased which implies that the overall debt for the company is
increasing. Hence, it provides higher risk to shareholders. The reason for
deficient performance attributed to decline in repayment and difficulty in
retaining earnings.
Sony
The overall debt of the company is maintained into the .3 levels. This means
that the company is not aggressive with financing its growth through debt. This
can also mean that the risk to the shareholders is kept at the minimum.
PVR
The overall debt of the company has increased over the years. This shows that
the company is using debts to finance its growth. The short-term borrowings of
the company had increased by 120% in the financial year 2019-2020 whereas
the long-term borrowings increased by 86 % in the financial year 2018-2019.
They seem to have invested the money in assets and operations to increase
growth.
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Debt Capitalization Ratio
The debt-to-Capitalization ratio is calculated on the debt liable for interest
payments and dividing it by total equity. This ratio gives analysts and investors
an idea of a company's financial structure and whether the company is a
suitable investment. Higher the ratio, the riskier the company. This is because
the higher ratio, interprets as the company is funded by debt than equity.
Since higher debt means greater risk of forfeiture on the loan if the debt
cannot be paid timely.
Debt Capitalization Ratio = Debt / (Debt + Equity)
Debt Capiti lizati on Rati o

0.77
0.72
0.65
0.49
0.5
0.46
0.44
0.43
0.39
0.39
0.31
0.23
0.19
0.19
0.19
0.18
0.17
0.14
0.14
0.08
0.08
0.08
0.04
0.04
0.04
0.04
0.04
0.03
0.03
2017 2018 2019 2020 2021
Zee
The Debt Capitalization Ratio of the company is low and is decreasing every
year. This trend is because of the significant increase in the other equity of the
company. This implies that the company is funded by equity rather than debt,
which means a lower liability to repay the debt and a lower risk of forfeiture on
the loan if the debt cannot be paid timely.
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Network18
The Debt Capitalization ratio has remained in the same range of about 0.3 –
0.4, the only exceptions being in 2019 and 2020. The significant rise in the ratio
in 2019 is due to the increase in the long-term debts of the company by 4000%
which has caused a massive jump in the overall debt. The equity has remained
in the same ballpark figure for these years, thus the jump in debt caused a
massive change. Then the sudden decline is because the company paid off 26%
of its debts, of both long term and short term by 82% and 25% respectively.
The equity increased by 17% by 2021 because of the increase in the minority
interest by 19%.
Sony
We can see that the company’s Debt Capitalization Ratio is lower than the
other companies meaning that there is lesser risk of insolvency. The Total Debt
for the year 2018 is the highest while its equity has not increased as high as the
other years. Hence the Ratio is the highest for 2018.
Dish TV
The debt to capital ratio is declining every year which is a good sign for the
company because it indicates a decline in the proportion of debt in the total
capital that is being used to fund the company’s operation. This trend is due to
the decrease in debt with respect to the total capital which in turn is mainly
because of the changes in other equity and the equity attributable to the
owners holding the company.
SUN TV
The debt capitalization ratio of the company is almost constant and has
decreased to a little extent in 2019 and 2021 but we can see that in
comparison to the other companies in the industry SUN TV has the lowest debt
capitalization ratio which indicates that the company is in good position.
21
PVR
The Debt Capitalization Ratio for the company has been increasing over the
years which shows that the company is using its debt to finance its assets more
and more, relative to the amount of equity used for the same purpose. The
total debt for the company has been highest for the financial year 2019-2020,
whereas the equivalent equity has not increased. Hence the Debt
Capitalization Ratio for the year has been the highest.
Interest Coverage Ratio

Interest coverage ratio tells investors how many rupees they have made in
profit per rupee of interest that they owe to their shareholders. The higher the
interest coverage ratio of any firm, the more solvent it is. Hence, interest
coverage ratio is of prime importance to lenders like banks and bond traders.
Interest Coverage Ratio = EBIT/ Interest
Interest Coverage Rati o

1570.41
1478.83
1315.75
144.03
73.5
28.64
19.81
16.13
15.74
14.83
9.26
6.42
4.18
4.47
3.53
2.99
1.48
1.04
1.23
0.75
1.24
5.6
18
15
13
9
6
2017 2018 2019 2020 2021
22
Zee
The company shows an increasing interest coverage ratio which states that the
company is higher so the more poised it is to pay its debts. It also means that
the company can get money from creditors easily.
Network18
Network18’s Interest coverage ratio has been going to-and-fro around an
average of 6. It’s the third lowest among the six companies which shows the
company is performing quite in that fact. Even though the earnings before
interest and tax have been on an increasing trend, the interest cumulated
changes year by year. In the year 2021, The interest has decreased by 24% due
to the absence of interest and investors income.
Sony
It is fair to say that the company is steadily increasing its Interest Coverage
Ratio to meet the Industry Standards. Before it was lower, and it posed a red
flag for the company. The year-to-year increase in this Ratio means the
company is getting better and better in paying its obligations to outstanding
debts and/or future borrowings.
Sun TV
Higher interest coverage ratio over the year 2017-18 implies that SUN TV has
higher ability to service its interest obligations. In 2019 SUN TV started
borrowing at a much higher interest rate as compared to its previous years and
thus, the value of Interest Coverage Ratio decreased significantly in 2020-21.
Dish TV
Though the interest coverage ratio is highest in 2017 but it still indicates that
the company has almost equal earnings to interest payable. This is a possible
red flag because even a small fall in earnings can lead to defaults. An interest
23
coverage ratio of 0.75 in the year 2018 indicates that the company does not
have sufficient income to pay income on loans hence investors and creditors
would avoid such a company. Such a decline is because of the decrease in EBIT
value in 2018.
PVR
The interest coverage ratio has been the highest for the financial year 2018-
2019, which is up to the industry standard. Prior to that the company had been
increasing its ability to handle the outstanding debt. But in the financial year
2019-2020, we see a significant drop in the interest coverage ratio because the
debt of the company increased by more than 200 %.
Total Debt Service ratio

This is a debt to profitability ratio used to determine a company’s ease of
payment of interest on its outstanding debt. It is used by investors and
creditors determine a company's riskiness relative to its current debt or for
future borrowing.
Total Debt Service ratio = EBIT/ (Interest + Debt)
Total Debt Service Rati o

11.26
9.44
8.23
7.91
7.85
4.61
3.65
3.56
2.95
2.63
2.6
2.1
1.9
1.8
0.59
0.57
0.38
0.35
0.35
0.34
0.34
0.31
0.29
0.26
0.16
0.12
0.12
0.5
2017 2018 2019 2020 2021

-0.21
24
Zee
The debt service ratio of the company has increased overall in the 5 years i.e.,
between FY2017-FY2021 but saw a decrease in the FY2021 as compared to the
FY2020. There is more than 120% of increase in the D&A and an increase of
about 35% in the operational cost of the company as compared to FY2017
which is combinedly decreasing the Ebit. there is also a 15% increase in the
company. The combined effect of lower EBIT and increased debt lowers the
Total debt service ratio.
Network18
For Network18, the debt service ratio has increased by 47% in 2021. The
company witnessed its lowest in the year 2018 and then it increased
exponentially to 0.57 in 2021. This rise is mainly due to the increase in earnings
before interest and tax value which increased by 9% mainly due to the
decrease in the cost of materials consumed by 22%. The total debt also
decreased as the company paid off majority of its short term and long-term
debts which has significantly increased the interest coverage ratio.
Sony
The debt service coverage ratio has been increasing for the years FY 2017-
2019, however it decreased for the last two years. Since less than 1 DSCR
means a negative cash flow and the company is not in a good condition to pay
off debts. The drop in the FY2021 i.e., to 0.5 shows that there was a problem in
the company relative to its operating income.
Dish TV
The debt service coverage ratio is highest in the year 2020 which can be
accounted to the highest value of EBIT. This indicates that there is more
income available to pay for debt servicing as compared to the other years. But
still the value is less than 1 which indicates that the company is not in a
condition to pay the debt.
25
Sun TV
The debt service ratio of SUN TV is much higher than its industry competitors
which means that the company has sufficient income to pay its current debt
obligations. But it has shown a gradual decrease from 2017 to 2021 except in
2019 in which it was the highest as the value of EBIT for 2019 increased
significantly and then it declined in subsequent years causing the debt service
coverage ratio to fall.
PVR
The Debt Service ratio has increased for the three financial years and then has
seen a decrease over the two financial years. It is the amount of cash that a
company generates for each amount of principal and interest owed. It was a
good indication that the company could generate Rs. 0.2 or Rs. 0.3 for every Rs
1 owed, but in the financial year 2020 and 2021 it had worsened, and they
generated negative cash of Rs. 0.21 for every Rs 1 owed in the financial year
2020-2021. This is because of the no revenue generation for the same.
VALUATION RATIO
Earnings per share

Earnings per share is an indicator on the company’s profitability. It shows how
much money each share of the company’s is worth of and is used a metric for
evaluating the corporate value
Earnings Per share = Net Income / No of share outstanding
26
Earnings Per Share
40.61
38.87
35.99
35.26
28.23
26.68
25.42
20.49
17.54
16.85
15.35
12.94
9.93
9.67
8.72
8.35
5.32
2.75
2.03
1.26
0.96
0.64
0.15
0.28
0.11
0.7
2017 2018 2019 2020 2021
-0.01
-0.54
-123.07
Zee
The EPS of the company has halved between the year 2017- 2020 and a slight
increase of 0.95 in the year FY2020-21. This is evident as the net income of the
company has also halved in the same period.
Network18
The earnings per share of Network18 have been on an increasing trend from
2017 to 2021 by 371%. This is due to the significant increase in the rise in net
income of the company which has been on an upward slope from 2019. This
boom caused the massive jump by 311% between 2018 and 2019.
Sony
EPS for FY 2019 is the highest owing to high increase in Net Income. The per
share data for basic and diluted is 388 and 380 respectively showing great
profitability.
27
Dish TV
EPS is negative in 2018 and 2019 because the company was in loss for two
years and the net income was negative. Negative EPS talks about exactly how
much the company has lost per share of outstanding stock
Sun TV
The Earnings per share of the company are high as compared to the other
companies in the industry and has also shown a gradual increase over the
years. This is because of the increase in the Net Income of the company over
the years except for the year 2020 in which the NI declined due to which the
EPS also declined.
PVR
The company has seen significant growth for EPS in the financial year 2018-
2019. The company was able to make Rs 40 for each share of its stock in the
year. But then due to a significant decrease in the net income from 6.2 % to 0.8
%, earning per share has also seen a downfall. And in the financial year 2020-
2021, the company has suffered losses, so the EPS is also negative.
Dividend per Share

Dividend per share is calculated by the total of declared dividends issued by a
company for every ordinary share outstanding. It’s an important metric for
investors as it indicates the amount a firm pays in dividends to each of its
Dividend per Share = Dividend Declared/ No. of share outstanding
28
Dividend per Share
Network18 Sony Dish TV Sun TV Network PVR
25
12.5
10
10
5
3.5
2.9
4
2.5
2.5
0.02
0.02
0.01
0.03
0.03
2
0.5
0.5
0.3
0
0
2017 2018 2019 2020 2021
Zee
There is a growing trend in the DPS of the company, a growing DPS over time
can indicate that the company's management believes that its earnings growth
can be sustained.
Network18
The company announced its dividend share percentage only in 2008 and never
after.
Sony
The increase for FY 2017-2020 means that its earnings growth could have been
sustained. We see a rise in DPS for the FY 2017-2020 but a drop in FY 2021 due
to poor earnings and this could be a red flag for the company.
Dish TV
The company hasn’t announced any recent dividend shares.
29
Sun TV
The dividend per share of the company showed a growth from 2017 to 2020
which indicates that the performance of the company increased over these
years but then it suddenly fell in 2021 due to the poor earnings of the
company.
PVR
The company has seen a steady dividend per share for the financial years
2016-18 to 2018-19 and then a significant growth of 100% in the DPS. But since
the company suffered losses in the financial year 2020-21, then DPS became
negligible.
Retention ratio
The retention ratio is the proportion of earnings which is kept by the company
as its retained earnings. The retention ratio refers to the percentage of net
income that is retained to be invested back in the business for its growth. It
gives an idea to an investor on how much money is used by the company to
reinvest into their business.
Retention ratio = 1 - (Dividend per share / market price of share)
Retenti on Rati o
Network18 Sony Dish TV Sun TV Network PVR
58.5
0.98
0.97
0.91
0.96
0.96
0.95
0.87
0.85
0.83
0.77
0.74
0.65
0.65
0.61
0.28
0.29
1
2017 2018 2019 2020 2021
30
Zee
The overall retention ratio of the company has decreased between the FY2017-
FY2021 but there was a high retention ratio in the FY2020. Which means that
the company held a large amount of earnings in fear of the crisis caused by
Covid.
Network18
The company announced its dividend share percentage only in 2008 and never
after.
Sony
The overall retention ratio of the company is consistently in the .9 figure for all
the FY2017-FY2021. This shows that the company is dishing out dividends as
well as keeping amounts to be used for reinvesting in the business.
Dish TV
The retention ratio is too high for the year 2019 because the dividend payout
ratio is too low in that year. It is because there is a huge difference between
Dividend per share and Earnings per share, EPS being a negative value. This
means that the company is growing thus investing earnings back into the
company.
Sun TV
The retention ratio of the company is not very high as it is an old and
established company but there has been slight increase in the values of the
retention ratio which means that the company is focusing on retaining its
earnings rather than paying consistent dividends to the shareholders.
In 2020 there was a huge decrease in the value showcasing the company’s
interest to minimize its retained earnings.
31
PVR
The overall retention ratio of the company has been just about the same for all
the financial years from 2017-18 to 2020-2021. This shows that the company
has been keeping an equivalent amount every year to reinvest in the
company’s operations.
Price to Earnings Ratio

Price to Earnings ratio is used for valuing a company which measures its
current market share price to its earnings per share. It is the amount of money
an investor is willing to pay to assist the company to increase their unit profit
per share. A higher value indicates that the investors believe in the growth of
the company and expect higher yields in the future.
Price to Earnings Ratio = Market value per share / Earnings per share
Price to Earnings Rati o

Zee Network18 Sony Dish TV Sun TV Network PVR
199.45
119.95
68.73
48.25
41.38
33.55
31.51
30.21
30.08
28.89
27.63
20.78
15.42
15.01
14.97
13.61
13.15
12.44
12.44
12.08
6.99
4.37
2.81
1.84
1.34
2017 2018 2019 2020 2021

-9.55
-23.44
Zee
The overall P/E ratio of the company decreased in the last 5 year, but an
increase is noticed in the FY2020-21 which means that either company's stock
is overvalued, or that investors are expecting high growth rates in the future.
32
Network18
The P/E ratio for Netwrok18 has decreased by a lot since 2018 when it was its
highest. In FY20, it was at its low point, but an increase has been noted for the
next year. It might be because the investors expect the value to increase in the
future as its earnings per share have gone up.
Sony
The Company’s P/E ratio went under in FY2018 but gained momentum back in
FY2019 which shows that the company’s stock was undervalued for the
FY2018.
Dish TV
A high P/E ratio of 119.95 in the year 2017 indicates that the stock’s price is
high relative to earnings and the stock is overvalued. Also, this high value is
because of high EPS value.
Sun TV
There has been a major decrease in the price to earnings ratio over the years.
There may be two reasons for this, first being that it’s possible that the
company is getting undervalued.
PVR
For the first three financial years we see that the ratio decreases which shows
that the company was either doing well or was being undervalued but then in
financial year 2019-2020, to earn Re 1 the investors had to pay an amount of
Rs. 199.5. The high P/E ratio signifies that the investors were ready to pay that
amount because of high growth expectations in the future.
33
Price to Book value ratio
Price to Book value ratio is the ratio which is used to compare the market value
of one share with its book value. A stock can be overvalued if it has a higher
P/B ratio and vice versa.
Price to Book value ratio = Market value per share / Book value per share
Price to Book value rati o

7.51
7.47
6.86
6.82
6.74
6.55
5.64
5.6
5.25
4.77
4.71
4.61
3.71
3.68
3.42
3.3
3.1
2.79
2.76
2.55
2.7
2.12
1.91
1.71
1.34
0.62
0.43
0.35
2017 2018 2019 2020 2021
Zee
The decrease in the market value of the company from 531- 201 in last 5 year
has affected the total decrease in the P/B ratio of the company.
Network18
There has been an increase in FY2021 compared to the previous year which
indicates that the stocks are now overvalued. The decrease seen in FY20
maybe due to the slump in the economy of India which has caused a ripple
effect in the market value of the share (which got decreased by 50% compared
to 2019).
34
Sony
P/B Ratio is on the 2 level, and it is maintained on that level except FY2018.
The year 2018 saw even though the stocks are undervalued it dipped further.
The stocks are not expensive and there is a low volatility in its values.
Dish TV
P/B ratio is less than 1 from 2018 to 2020 which indicates that the stock is
trading at less price than the book value of the company meaning that the net
value of the assets is worth more than the total value of the stock. This can be
interpreted in two ways- Either the investors are misjudging the company and
the stock is deeply undervalued or the investors believe that the assets of the
company are outdated or overpriced in the balance sheet, so they don’t want
to pay full value for the company.
Sun TV
The company has seen a constant rate of fall in P/B value ratio. This is because
of constant increase in total shareholders' funds. Hence, book value per share
has increased throughout the 5 years, which has shown a fall in P/B ratio.
PVR
The company’s stock has been trading at a premium value as compared to the
company’s book value. The highest P/B value is seen in 2016-2017, and then a
constant fall in P/B value. This is because the book value per share of the
company has been increasing, with a fall in financial year 2019-2020 only.
35
OVERALL PERFORMANCE RATIO
Return on Total assets ratio

This ratio helps in understanding how well a company is using its assets to
generate revenue.
Return on Total assets ratio = EBIT/Total Assets

Industry Standard = 4.6%
Return on Total Assets

Zee Network18 Sony
40.08%
35.03%
34.76%
32.16%
31.50%
30.57%
28.22%
27.11%
24.85%
20.86%
17.62%
15.49%
11.83%
11.38%
10.70%
9.83%
9.30%
9.20%
8.70%
8.12%
7.60%
7.34%
7.07%
5.97%
4.81%
4.57%
2.40%
1.97%
2017 2018 2019 2020 2021
-12.13%
Zee
ROTA of the company was highest in the year FY2017-18 and has been
declining in the following years and is the lowest in the FY2020-21. The
decreased ROTA can be associated with the increase in the operational cost
and decrease in the revenue generated by the company.
Network18
Even though it took a hit in FY18, the Return on Total assets has been on the
increase ever since for Network18. This indicates that the company has been
utilizing its assets more productively year by year. One of the major
36
contributors of this is with the decrease in the cost of materials consumed
which has helped to increase the overall operating profit.
Sony
ROTA of the company is highest in FY 2018 meaning that the company was
able to use its assets more efficiently and generate earnings. This does not
mean that the company is doing financially better but due to it being a bigger
company it is doing relatively better.
Dish TV
ROTA is highest in the year 2017 which means that the Company is using its
assets to generate earnings most effectively in 2017. There is a significant fall
in the ratio in 2018 because the total assets increased by 264% in 2018. This is
because of a huge increase in Goodwill in the non-current assets category. This
was because in 2018, Dish TV completed a merger with Videocon d2h, creating
the largest DTH provider in India at the time of merger.
Sun TV
The company has a good ROTA for the year 2017-19 which indicates its ability
to generate higher profits from its assets but then there is a decline in EBIT for
the year 2020 which indicates that the company’s expenses have been
increased which reduced the profit margin by approximately 7 percentage
points in 2020 and 4 percentage points in 2021.
PVR
This signifies that for a Rs. 100 investments, the company can generate a
return of 9% to 11 % in the first three financial years. In the financial year
2019-2020, we see a significant increase in Plant and machinery but a decrease
in the Goodwill of the company, hence the return on investment has
decreased to 7% for that year. Then, we will have a negative return in the
37
financial year 2020-2021 because the expenses of the company have increased
by 300%, and the revenue generated has decreased whereas the total assets
do not see much difference.
Return on equity ratio

This ratio gauges the company’s profitability in relation to the total equity of
the company. The satisfying factor for this ratio is the industrial standard. It
could be different for different industries.
Return on equity ratio = Net Income / Equity

Return on Equity rati o
35.38%
32.32%

27.11%
25.64%
24.85%
24.26%
23.71%
22.22%
21.70%
21.36%
16.49%
22%
12.69%
11.59%
15%
9.89%
9.53%
9.20%
8.95%
13%
6.21%
3.37%
2.85%
1.84%
4%
3%
-0.03%
2017 2018 2019 2020 2021

-1.49%
-40.79%
Zee
The company’s return on equity is less than half as compared to 5 years back.
This can be explained by the decreasing net income of the company which was
also more than halved of what it was 5 years back. The ratio being below the
industry standards could be interpretation as the company being evaluated as
poor from the investors point of view.
38
Network18
Like ROTA, ROE also took a hit in 2018 mainly because of the materials
consumed increased by more than 200%. This caused the operating profit to
decrease. Ever since then, it has been on an increase and reached an all time
high. So, the company is generating more on its equity capital.
Dish TV
Return on equity is low for Dish TV in the given years which means that the
company didn’t successfully utilize the resources provided by its equity
investors and its accumulated profits in generating income. The ratio is
negative in 2018 and 2019 because the company was in loss in the two years
and the net income was negative.
Sun TV
The ROE fell for the year 2018 when compared to the year 2017, the lower
return of equity signifies that the company is generating lesser return on the
equity capital. For the year 2019, PAT increased which in turn increased ROE,
but the company couldn’t maintain the same profit trend for the year 2020
and it further declined in 2021.
PVR
The company has the highest return on equity ratio for the financial year 2018-
2019 which shows it was most efficient at generating income and growth from
its equity in the same year. Since the net income decreased, return on equity
ratio also decreased. In financial year 2020-2021, when the net income
became negative, return on equity ratio also showed a downfall.
39
Return on capital employed ratio
This ratio is mainly used to get a clear understanding of how the capital of the
companies are performing to generate revenues.
Return on capital employed ratio = EBIT / Total Assets - Current Liabilities

Return on Capital Employed rati o

39.40%
38.43%
37.14%
36.61%
35.47%
32.42%
31.14%
28.42%
27.73%
26.27%
25.64%
23.17%
16.22%
15.91%
14.73%
13.52%
12.09%
10.35%
13%
13%
12%
11%
8.88%
8.12%
5.97%
4.57%
1.97%
3%
2017 2018 2019 2020 2021

-14.28%
Zee
Return on capital employed ratio has significantly decreased in the past 5
years. This can be explained by the decrease in the EBIT of the company. While
there is no significant change in companies’ assets and liabilities there has
been a decrease of 19% in the EBIT of the company.
40
Network18
The return on capital employed has stayed at an average level for the company
past two years. This means that the company can generate more profits from
the capital they have employed. The sharp increase in the year 2018 is because
of the increase in revenue by 178%, this has caused the ROCE to increase by
175%.
Sony
We can see the consistency in this ratio for the FY 2017-2020. However, we
witnessed a sharp decline in the FY 2021. This means that the capital employed
for the year could not generate enough profits. Reasons could be idling of
capital assets due to the pandemic or sales, etc., indirectly affecting the capital
structure.
Dish TV
Return on Capital employed has significantly decreased in because there was a
decrease in EBIT value which was approximately 189%. Further, the ratio kept
on increasing because of the increase in EBIT value which means that more
profit is being generated by each Rupee of capital employed.
Sun TV
The company has shown improvement in maintaining the EBIT margin for the
years 2017-19 which indicates the company is showing promising revenue. For
the year 2020 and 2021, the decline in ROCE indicates increase in liabilities of
the company and decrease in the value of EBIT as compared to the previous
years.
PVR
Return on capital employed ratio has been stable for the financial years 2016-
17 to 2018-19, but then they have fallen in the financial year 2019-2020
41
because the Total assets have increased by 92 % and current liabilities by 22%
whereas there is no significant change in EBIT. In the financial year 2020-2021,
the EBIT has become negative because the revenue has gone down, even if
there is not much change in assets and liabilities.
Equity Turnover Ratio

This ratio helps shareholders to gauge the worthiness of holding equity in the
company.
Equity Turnover Ratio = Sales/Equity
Equity Turnover Rati o

Zee Network18 Sony
7.75
2.42
2.34
2.31
2.17
2.11
2.06
1.95
1.72
1.66
1.59
1.25
1.14
0.94
0.94
0.92
0.88
0.78
0.72
0.69
0.66
0.66
0.9
0.54
0.51
0.49
0.7
0.34
0.15
2017 2018 2019 2020 2021
Zee
The equity turnover ratio of the company was higher but because the sales of
the company have decreased by 20% in the year FY2020-21 and the increase in
the equity of the company the equity turnover ratio has decreased in the
FY2020-21.
42
Network18
The equity turnover ratio has decreased in FY21 by 25% due to decrease in
income from sales (by 12%) and increase in equity (by 17%). But compared to
its competitors in the media industry, they are at the top. This could be a
positive sign for the company as the shareholders will have increased
confidence in holding their shares in the company.
Sony
The Equity Turnover Ratio is slowly decreasing from 2.42 in FY 2017 to 1.72 in
FY 2020 then dropping directly to 0.34 in 2021. This could pose a threat as it
could decline further, and shareholders may not see it worthy of holding an
equity in the company.
Dish TV
Equity turnover ratio is significantly high in 2017 which indicates that the
company has efficiently used shareholder’s equity to generate sales to grow
the company. There has been a drastic fall in the ratio because the equity of
the company increased by 1597% in 2018.
Sun TV
The equity turnover ratio has shown a significant decrease in the value from
the year 2017 to 2021 except the year 2019 in which it went up. The increase
in the equity turnover ratio in 2019 is due to the increase in the sales of the
company and the reason for decline in the ratio in 2020-21 is the decrease in
the total sales of the company and increase in the total equity in these years.
PVR
The sales have decreased by 91.80% whereas as equity has increased,
therefore there is a huge fall in the equity turnover ratio in the financial year
2020-21. For the first 4 financial years the company had been using the equity
43
efficiently to manage the growth of revenue with most efficiency shown in the
financial year 2019-2020.
FIVE-FACTOR DUPONT ANALYSIS

The Five Factor DuPont analysis is used to compare the operational efficiency
of the five companies that are presented here. It is used to calculate ROE of a
company by using five metrics: - Tax factor, Interest factor, EBIT margin, Asset
Turnover Ratio and Total Leverage. ROE is used to show a company's
management to create value for its shareholders. However, ROE can be
deceptive as it is vulnerable to factors.
The Five Metrics: -
1. Tax Factor (TF): This is calculated by dividing Net Income by Earnings
before Tax. It will always be less than one. It gives an idea of how much
tax a company is paying on its earnings. Closer it is to 0, higher the tax is
paid by the company.
2. Interest Factor (IF): It is the ratio of EBT and EBIT. It tells how much a
company is paying in interest on top of its earnings. If the value is closer
to 0, the company will pay larger interest.
3. EBIT Margin: It is the ratio of operating income over operating sales. It is
used to understand the true operating cost of a business.
4. Asset Turnover Ratio (ATR): It is a measure of Assets efficiency. Tells
how efficiently companies are using their assets to generate income.
5. Total Leverage (TL): Measure of financial leverage of the company. It is
the ratio of a company's assets to equity to give an idea about how a
company is financing its assets, either by equity or by debt.
Therefore, by Five factor DuPont analysis,

ROE = TF x IF x EBIT Margin x ATR x Total Leverage
44
ROE (Five Factor DuPont Analysis)
35.38%
32.32%
27.11%
25.64%
24.85%
24.26%
23.71%
22.22%
21.70%
21.36%
22%
16.49%
12.69%
11.59%
15%
13%
9.89%
9.53%
9.20%
8.95%
6.21%
3.37%
2.85%
-0.03%
1.84%
4%
3%
2017 2018 2019 2020 2021
-1.49%
-40.79%
Zee
The ROE is going down for the previous four years with a slight increase in
FY21. This is a common thread in the whole sector as the same decline is
observed in most of its competitors.
Network18
As we can see, the ROE of Network18 has gone up in FY21. By the Five Factor
DuPont analysis, we can see that the major contributors were EBIT margin and
tax factor. On further analysis, we can see that sales have gone down by 12%
and the net income has also gone down. The company is in safe zone as it
hasn’t gone negative even once and is on a steady trend for last two years.
45
Sony
As compared to its peers SONY is doing well since there is no negative ROE for
the given years. The ROE peaks at FY 2019 and drops harshly in FY 2021.
However, the drop is understandable as its peers are facing the same issue
whereas it can be improved in the upcoming Financial Year 2022.
Dish TV
The ROE has increased by almost 3000% in FY21 due to the decrease in
depreciation and amortization charges and with an increase in sales.
Sun TV
The ROE of the company has decreased over the years except for 2019 where
it increased, this is because of the significant increase in the asset turnover
ratio as the sales of the year are high in this year but then it fell over the years
2020-21 causing the ATR to fall and hence the ROE also decreased.
PVR
The company has low return on equity, with an average of 8.89 % in overall 4
years, and a negative return on equity in the financial year 2020-2021.
46
REFERENCES
 Zee: - https://www.zee.com/investors/investor-financials/
 Network18: - https://www.nw18.com/finance
 Sony: - https://www.sonyfh.co.jp/en/financial_info/annualreport/
 Dish TV: - https://www.dishtv.in/Pages/Investor/Financials-Reports.aspx
 Sun TV: - http://www.suntv.in/finance.html
 PVR: - https://www.pvrcinemas.com/corporate
47
APPENDIX
Zee
Balance Sheet (Consolidated) for 5 Years (2017-2021)
Particulars 2021 2020 2019 2018 2017
ASSETS
Non-current assets
(a) Property, plant and equipment 5809 6797 5959 6005 5031
(b) Capital work-in-progress 129 334 1083 780 1270
(c) Investment property 520 797 1551 1555 1150
(d) Goodwill 3804 4070 5252 5467 2676
(e) Other intangible assets 1779 1484 1383 1734 457
(f) Intangible assets under development 625 497 478 139 287
(g) Financial assets
(i) Investments
a) Investments in associates 4 4 3 2 8
b) Investments in joint ventures 16 193 217 194 163
c) Other investments 296 281 969 1397 1392
(ii) Other financial assets 347 429 523 758 1216
(h) Income tax assets (net) 4229 4101 7982 7026 4618
(i) Deferred tax assets (net) 3151 2742 903
(j) Other non-current assets 227 90 591 340 255
Total non-current assets 20936 21819 25991 25397 19426
Current assets
(a) Inventories 54030 53475 38505 26278 16843
(b) Financial assets
(i) Other investments 7667 2770 8576 13696 11868
(ii) Trade receivables 19452 20847 18274 15365 12418
(iii) Cash and cash equivalents 10485 5529 9677 9345 25116
(iv) Bank balances other than (iii) above 422 1816 2541 6772 1017
(v) Loans - 2135 2428 1542
(vi) Other financial assets 3418 3732 10055 1798 2216
(c) Other current assets 11035 12804 13576 10218 10134
Total current assets 106509 100973 103339 85900 81154
Non-current asset classified as held for sale 742 945
Total assets 128187 123737 129330 111297 100580
EQUITY AND LIABILITIES
Equity
(a) Equity Share capital 961 960 960 960 960
(b) Other equity 99985 92479 88279 74657 65607
Equity attributable to shareholders 100946 93439 89239 75617 66567
Non-controlling interests 129 110 143 142 10
Total equity 101075 93549 89382 75759 66577
Liabilities
Non-current liabilities
(a) Financial liabilities
(i) Borrowings
a) Redeemable preference shares - 2975 7409 11443 15262
b) Others 195 526 20 9 11
(b) Provisions 1546 1405 1350 892 767
c) Other Non-Current Liabilities
Total non-current liabilities 1741 4906 8779 12344 16040
Current liabilities
(i) Trade payables 13982 16803 14897 11497 4891
(ii) Other financial liabilities
a) Redeemable preference shares 3832 2975 3704 3802 3815
b) Others 3498 2808 8029 2579 5358
48
(b) Other current liabilities 2811 1668 1096 1438 1815
(c) Provisions 163 122 101 83 89
(d) Income tax liabilities (net) 1085 906 2080 1799 1782
(e) Deferred tax liabilities (net) 1262 1996
Total current liabilities 25371 25282 31169 23194 17750
Total liabilities 27112 30188 39948 35538 33790
Total equity and liabilities 128187 123737 129330 111297 100367
Particulars 2021 2020 2019 2018

Revenue from operations 77299 81299 79339 66857
Other income 1104 2836 2515 4403
Total Income I 78403 84135 81854 71260
Operational cost 37505 38285 30758 25275
Employee benefits expense 8183 7805 7249 6657
Finance costs 571 1449 1304 1448
Depreciation and amortization expense 2649 2706 2347 1821
Fair value loss / (gain) on financial instruments 1962 2597 -36 66
at fair value through profit and loss
Other expenses 13710 18863 15693 14164
Total Expenses II 64580 71705 57315 49431
Profit before share of (loss)/profit in associates III=(I-II) 13823 12430 24539 21829
and joint venture, exceptional items and tax
Less/Add: Share of (loss)/profit in IV -1 -24 24 12
associates and joint venture
Profit before exceptional items and tax V=(III+IV) 13822 12406 24563 21841
Less : Exceptional items VI -1266 -2843 -218 1346
Profit before tax VII=(V+VI) 12556 9563 24345 23187
Less : Tax expense
Current tax - current year 5162 5815 9686 8792
- earlier years -101 29 -1147 -14
Deferred tax (charge)/benefit -436 -1527 134 -369
VIII 4625 4317 8673 8409
Profit for the year IX=(VII-VIII) 7931 5246 15672 14778
Other comprehensive income
An Items that will not be
reclassified to profit or loss
(a) (i) Re-measurement of defined -2 109 -99 47
benefit obligation
(ii) Fair value changes of equity instruments 6 1 -88 -68
through other comprehensive income
(b) Income tax relating to items that will not be 0 -28 35 -14
4 82 -152 -35
B Items that will be reclassified profit or loss
(i) Exchange differences on translation of -214 1254 1449 -365
financial statements of foreign operations

Total other comprehensive (loss)/income -210 1336 1297 -400
Total comprehensive income for the year 7721 6582 16969 14378
Profit for the year
Attributable to:
Shareholders of the Company 8001 5265 15671 14792
Non-controlling interests -70 -19 1 -14
7931 5246 15672 14778
Total comprehensive income for the year

Attributable to:
Shareholders of the Company 7791 6601 16968 14392
Non-controlling interests -70 -19 1 -14
7721 6582 16969 14378
Earnings per Equity share
49
(face value Re. 1 /- each)
Basic 8.33 5.48 16.32 15.4
Diluted 8.33 5.48 16.32 15.4
Network18
Particulars 2017 2018 2019 2020 2021
ASSETS
Non - Current assets
(a) Property, Plant and Equipment 2422.50 3054.60 2846.10 4068.30 3759.40
(b) Capital work-in-progress 9.19 218.00 331.40 115.90 43.50
(c) Goodwill 14686.07 25193.40 25193.40 25193.40 25193.40
(d) Other intangible assets 550.71 819.10 638.80 471.90 341.50
(e) Intangible assets under development 36.28 36.90 141.60 750.70 1214.40
(f) Financial Assets
- Investments 21350.88 6100.00 8845.60 7467.80 7184.90
- Loans 1771.71 1927.50 1019.70
- Other financial assets 218.28 376.30 399.90 412.20 336.00
(g) Deferred tax assets (net) 523.48 321.50 497.00 490.10 157.40
(h) Other non current assets 2831.14 5160.10 6873.80 6223.40 5692.90
Total Non - Current assets 44400.23 43207.40 46787.30 45193.70 43923.40

Current assets
(a) Inventories 24.39 13436.60 19045.80 18858.10 20366.70
- Investments 472.49 592.10 382.10 492.30 523.60
- Trade receivables 3173.18 12852.40 13021.50 15434.30 12786.00
- Cash and Cash equivalents 249.83 1885.30 1855.60 1146.90 3271.00
- Bank balances Other than Cash and Cash equivalents 47.33 60.70 36.20 33.20 30.60
- Loans 580.71 - - 1.20 3.00
(c) Other current assets 1344.57 2340.30 2149.50 1964.30 1517.90
Total current assets 6063.87 31882.00 37715.00 40965.00 38641.70

TOTAL ASSETS (1+ 2) 50464.10 75089.40 84502.30 86158.70 82565.10

Equity
(a) Equity Share Capital 5176.80 5176.80 5176.80 5176.80 5176.80
(b) Other Equity 7649.96 6155.20 2931.30 -14.70 289.00
Equity attributed to owners of the comapany 12826.77 11332.00 8108.10 5162.10 5465.80
(c) Non controlling interests 16274.41 22882.20 24129.90 27017.80 32195.00
TOTAL EQUITY 29101.18 34214.20 32238.00 32179.90 37660.80

50
Liabilities
Non Current liabilities
- Borrowings 0.76 54.00 2216.00 10.40 1.90
- Other Financial liabilities - - - 864.60 1098.90
(b) Provisions 410.00 611.50 709.20 823.90 974.10
Total Non - Current Liabilities 410.78 665.50 2925.20 1698.90 2074.90

Current liabilities
- Borrowings 13069.44 21951.40 27899.10 32625.90 24128.90
- Trade payables 3510.39 15282.90 17563.50 14768.40 14247.30
- Other current liabilities 626.18 381.10 805.10 1086.10 568.10
(b) Other current liabilities 1536.25 2518.80 2943.40 3691.60 3722.60
(c) Provisions 2209.90 75.50 128.00 107.90 162.50
Total current liabilities 20952.15 40209.70 49339.10 52279.90 42829.40

TOTAL EQUITY AND LIABILITIES (1+ 2+ 3) 50464.10 75089.40 84502.30 86158.70 82565.10
Income statement for 5 years (2017-2021)

Particulars 2017 2018 2019 2020 2021
Revenue from operations 14910.4 18390.0 51161.8 53571.5 47051.1
0 0 0 0 0
Other income 0.00 0.00 0.00 0.00 0.00
Total Income 14910.4 18390.0 51161.8 53571.5 47051.1
0 0 0 0 0
Operational cost 5256.00 11804.0 36367.9 35250.9 27385.9
0 0 0 0
Finance costs 594.80 863.90 1784.50 2077.60 1571.20
Depreciation and amortization expense 799.00 887.40 1420.50 1746.30 1468.10
Other expenses 5108.20 2114.40 2836.30 2744.30 3409.00
Total Expenses 10959.0 14782.3 40988.7 40072.8 32366.1
0 0 0 0 0
Profit before share of (loss)/profit in associates 4546.20 4471.60 11957.6 15576.3 16256.2
and joint venture, exceptional items and tax 0 0 0
Less/Add: Share of (loss)/profit in -178.60 25.40 -543.20 -482.50 -239.40

associates and joint venture
Profit before exceptional items and tax 3568.60 3609.60 9993.90 13347.5 14548.7
0 0
Less : Exceptional items 594.80 863.90 1784.50 2077.60 1571.20
Profit before tax 2973.80 2745.70 8209.40 11269.9 12977.5
0 0
Less : Tax expense 96.30 619.30 -530.50 870.60 -348.20
Income Tax Expense 96.30 619.30 -530.50 870.60 -348.20
Profit for the year 2877.50 2126.40 8739.90 10399.3 13325.7
0 0
51
Other comprehensive income
A Items that will not be -2029.00 1176.00 -3646.00 -253.00 -6377.00
B Items that will be reclassified profit or loss -37.00 5.00 79.00 43.00 182.00
Total other comprehensive (loss)/income -1706.00 1783.00 -3567.00 150.00 -6195.00
Total comprehensive income for the year 18874.0 35121.0 2452.00 54809.0 -581.00
0 0 0
Profit for the year
Attributable to:
Shareholders of the Company 3913.00 6482.00 -4185.00 3228.00 -
23661.0
0
Non-controlling interests 1667.00 26856.0 10204.0 51431.0 29275.0
0 0 0 0

Total comprehensive income for the year

Attributable to:
Shareholders of the Company 2135.00 8257.00 -7534.00 3037.00 29460.0
0
Non-controlling interests 19739.0 26846.0 9986.00 51772.0 28879.0
0 0 0 0

Earnings per Equity share 0.38 0.63 -0.40 0.31 -2.29
(face value Re. 1 /- each)
Net Worth 45686.0 42523.0 42106.0 45686.0 42106.0
0 0 0 0 0
Sony Pictures Limited

Balance Sheet
Balance Sheet as of: Mar-31- Mar-31-2018 Mar-31- Mar-31- Mar-31-2021
2017 2019 2020
Currency Yen Yen Yen Yen Yen
Units Millions Millions Millions Millions Millions
Current Assets
Cash and Cash Equivalents 960142 1586329 1470073 1512357 1786982
Marketable Securities 1051441 1176601 1324538 1847772 411982
Allowance for Doubtful Accounts and sales 53150 48663 25440 25873
returns
Other Receivables 223632 190706 223620 1028793 117682
Notes and Accounts Receivables, Trade 1006961 1061442 1091242 188106 1365493
Inventories 640835 692937 653278 589969 636668
Prepaid expenses and Other Current Assets 525861 516744 509301 594021 396210
Total Current Assets 4355722 5176096 5246612 5735145 4715017
Non-Current Assets
Investments and Advances 10111793 10756058 11724651 12734132 18217432
Property, Plant and Equipment 758199 739470 777053 908644 1348575
Goodwill 522538 530492 768552 783888 726109
Intangibles 584185 527168 917966 906310 1453602
Deferred Insurance Acquisition Costs 568837 586670 595265 600901
52
Deferred Income Taxes 98958 96772 202486 210372
Other 323396 325167 339996 340005 1047114
Film Costs 336928 327645 409005 427336
Operating and Finance right-of-use assts 392610
Total Non-Current Assets 13304834 13889442 15734974 17304198 22792832
Total Assets 17660556 19065538 20981586 23039343 27507849
Current Liabilities
Short term Borrowings 464655 496093 618618 810176 1201747
Current portion of long-term debt 53424 225522 172461 29807 205406
Current portion of long-term operating lease 68942
liabilities
Notes and Accounts payable, trade 539900 468550 492124 380810 1596563
Accounts payable, other and accrued expenses 1394758 1514433 1693048 1630197 161433
Accrued income and other taxes 106037 145905 135226 145996 84431
Deposits from customers in the banking business 2071091 2159246 2302314 2440783 2682156
Other 591874 610792 666024 733732 1421868
Total Current Liabilities 5221739 5620541 6079815 6240443 7353604
Non-Current Liabilities
Long-term Debt 681462 623451 568372 634966 1053636
Long-term operating lease liabilities 314836 116537
Accrued Pension and Severance Costs 396715 394504 384232 324655 267222
Deferred Income taxes 432824 449863 531421 549538 816587
Future Insurance Policy Benefits and Other 4834492 5221772 5642671 6246047 6614585
Policy Holders' account in the life insurance 2631073 2820702 3048202 3642271 4328894
business
Other 314771 278338 281382 289285 232439
Total Liabilities 14513076 15409171 16536095 18242041 20783504
Redeemable non-controlling interest 12058 9210 8801 7767

Shareholders' Equity
Sony Corporation's Shareholder's equity:
Common Stock 860645 865678 874291 880214 880214
Additional paid-in capital 1275337 1282577 1266874 1289719 1489597
Retained earnings 984368 1440387 2320586 2768856 2914503
Accumulated other comprehensive income -618769 -616746 -610670 -580980 1520257
Treasury Stock, at cost -4335 -4530 -104704 -232503 -124228
Non-controlling interests 638176 679791 690313 664229 43996
Total equity 3135422 3647157 4436690 4789535 6724339
Total liabilities and equity 17660556 19065538 20981586 23039343 27507843
Income Statement
For the Fiscal Period Ending 12 months 12 months 12 months 12 months 12 months
Mar-31- Mar-31- Mar-31- Mar-31- Mar-31-
2017 2018 2019 2020 2021
Currency Yen Yen Yen Yen Yen
Units Millions Millions Millions Millions Millions
Revenues
Net Sales 64,43,328 72,31,613 73,06,235 68,56,090 18,44,713
Financial services revenue 10,80,284 12,21,235 12,74,708 12,99,847 4,12,130
Other operating revenue 79,638 91,134 84,744 1,03,948
53
Total Revenues 76,03,250 85,43,982 86,65,687 82,59,885 22,56,843
Expenses
Cost of Sales 47,53,010 51,88,259 51,50,750 47,53,174 12,48,773
Selling, general and administrative 15,05,956 15,83,197 15,76,825 15,02,625 3,45,302
Financial services and expenses 9,10,144 10,42,163 11,12,446 11,71,875 3,88,069
Other operating(income) expense, net 1,49,001 4,072 -71,568 -3,611 -1,101
Total Cost and Expenses 73,18,111 78,17,691 77,68,453 74,24,063 19,81,043
Equity of net income of affiliated 3,563 8,569 -2,999 9,637 4,268

companies
Operating Income 2,88,702 7,34,860 8,94,235 8,45,459 2,80,068
Other Income
Interest and Dividends 11,459 19,784 21,618 19,278 11,685
Gain on sales of securities investments, net 225 1,517 1,18,677
Other 2,734 2,427 4,440 2,671
Other Expenses
Interest 14,544 13,566 12,467 11,090
Loss on pension plan amendment 6,358
Loss on devaluation of securities 7,629 4,955 20,180
investments
Foreign Exchange Loss, net 22,181 30,634 11,279 26,789
Other 7,147 10,384 3,576 3,541 8,543
51,501 59,539 27,322 67,958 8,543
Income before Income Taxes 2,51,619 6,99,049 10,11,648 7,99,450 283210

Income Taxes 1, 1, 1,
24,058 51,770 45,098 77,190 70,095
Net Income 1,27,561 5,47,279 9,66,550 6,22,260 213115
less: net income attributable to -54272 -56485 -50279 -40069 -1286

noncontrolling interests
Net income attributed to stockholders 73,289 4,90,794 9,16,271 5,82,191 2,11,829
Per Share Data

Net income attributed to stockholders
Basic 58.07 388.32 723.41 471.64 170.95
Diluted 56.89 379.75 707.74 461.23 169.22
Dish TV
Consolidated Balance Sheet
(All amounts in ` lacs, unless otherwise stated)
Particulars 2020 2019 2018 2017 2016

ASSETS
Non-current assets
Property, plant and equipment 2,84,880 3,34,886 3,63,380 2,02,994 1,85,597
Capital work in progress 62,272 76,660 67,806 57,963 49,986
54
Goodwill 2,81,699 4,73,249 6,27,542 0 0
Other intangible assets 2,01,554 2,15,383 2,27,569 1,235 810
Investments 0 0 15,000 15,000 15,000
Loans 1,079 1,129 1,534 986 678
Others financial assets 45 1,217 2,327 37 275
Deferred tax assets (net) 1,14,776 1,01,550 60,265 51,174 44,130
Current tax assets (net) 9,897 8,083 10,774 4,969 4,144
Other non-current assets 83,821 17,976 19,310 13,431 11,632
10,92,523 12,30,133 13,95,507 3,47,789 3,12,252
Current assets
Inventories 2,201 2,471 3,805 1,308 1,256
Financial assets
Trade receivables 8,684 14,059 14599 8697 7246
Cash and cash equivalents 11,271 9,203 30196 17332 9093
Other bank balances 3,355 7,865 26104 11892 24824
Loans 1,607 1,197 648 1281 1507
Other financial assets 131 1,05,673 18407 4142 4298
Other current assets 41,112 63,957 27941 23093 18233
68,361 2,04,425 121700 69226 74660
Total assets 11,60,884 14,34,558 1517207 417015 386912

EQUITY
Equity share capital 18,413 18,413 18,413 10,659 10,659
Other equity 3,66,568 5,30,585 6,57,000 29,921 20,213
Equity attributable to owners of Holding 3,84,981 5,48,998 6,75,413 40,580 30,872
Company
Non-controlling interest -5,207 -3,458 -1,808 -878 0
3,79,774 5,45,540 6,73,605 39,702 30,872
Liabilities
Non-current liabilities
Financial liabilities
Borrowings 56,044 1,23,927 1,79,488 58,133 1,09,616
Other financial liabilities 177 - 4,483 10,791 5,433
Provisions 2,592 2,728 4,084 2,307 1,985
Other non-current liabilities 3,184 3,628 12,139 1,672 1,652
61,997 1,30,283 2,00,194 72,903 1,18,686
Current liabilities
Financial liabilities
Borrowings 43,696 69,142 45,322 0 284
Trade payables 129108 138992 67,018 18,451 23,286

Other financial liabilities 1,07,722 1,45,838 1,44,179 1,04,113 49,783
Other current liabilities 80,564 78,671 1,08,023 41,932 42,909
Provisions 3,58,023 3,26,092 2,78,865 1,39,913 1,19,329
7,19,113 7,58,735 6,43,407 3,04,409 2,35,591
55
Total equity and liabilities 11,60,884 14,34,558 15,17,207 4,17,015 3,86,912
Particulars 2020 2019 2018 2017 2016
Income
Revenue from operations 3,55,634 6,16,613 4,63,416 3,01,438 3,05,994
Other income 1,361 5,215 5,416 6,150 6,404
Total income 3,56,995 6,21,828 4,68,832 3,07,588 3,12,398
Expenses
Purchases of stock-in-trade 75 2,239 937 1119 1,256
Changes in inventories of stock-in-trade 270 -1,337 174 -52 -269
Operating expenses 78,730 3,38,280 247660 143724 1,46,812
Employee benefits expense 19,311 24,751 20961 14608 12,287
Finance costs 56,522 62,865 39637 22923 20,873
Depreciation and amortisation expenses 1,42,621 1,44,092 107172 69080 59,071
Other expenses 46,651 48,253 62082 45237 43,416
Total expenses 3,44,180 6,19,143 478623 296639 2,83,446
Profit before tax 12,815 2,685 -9,791 10,949 28,952
Exceptional items 1,91,550 1,56,254 0 0 0
(Loss) before tax -1,78,735 -1,53,569 0 0 0
Tax expense:
Current tax 0 2,844 225 9816 3,310
Current tax -prior years 0 921 -7079
Deferred tax -13,251 -40,993 -1526 -7,079 -43,600
Profit after tax -1,65,484 -1,16,341 -8,490 8,212 69,242

Basic -8.52 -5.95 -0.69 0.86 6.50
Diluted -8.52 -5.95 -0.69 0.86 6.50
Sun TV
Particulars 2021 2020 2019 2018 2017
ASSETS
Non - Current assets
(a) Property, Plant and Equipment 599.12 650.89 684.19 716.93 769.72
(b) Capital work-in-progress 146.32 66.30 13.36 49.06 1.64
(c) Investment Properties 7.79 8.28 11.26 12.00 12.71
(d) Goodwill 4.80 4.80 4.80 4.80 4.80
(e) Other intangible assets 263.76 387.71 411.78 419.76 437.31
(f) Right to use assets 70.06 93.71
(g) Investment in Subsidiary / Joint Ventures 435.15 441.62 445.65 430.39 407.64
(h) Financial Assets
- Investments 657.32 277.49 261.39 201.81 194.92
56
(i) Deferred tax assets (net) 2.14 77.15 1.09 0.72 3.46
(j) Non current tax assets (net) 338.75 0.99 98.10 63.69 67.95
(k) Other non current assets 166.06 210.64 207.86 254.61 154.96
Total Non - Current assets 2738.36 2233.19 2152.99 2174.41 2118.80

Current assets
(a) Inventories - - 0.24 0.25 0.89
- Investments 2411.57 1972.92 2093.48 1515.22 545.48
- Trade receivables 1433.94 1367.22 1133.99 1062.29 772.60
- Cash and Cash equivalents 468.87 405.80 378.90 263.59 661.83
- Bank balances Other than Cash and Cash 602.97 297.37 214.10 109.01 126.56
equivalents
(c) Other current assets 38.06 43.93 54.01 44.92 58.47
Total current assets 5208.07 4274.37 4044.73 3099.55 2262.82

TOTAL ASSETS (1+ 2) 7946.43 6507.56 6197.72 5273.96 4381.62

Equity
(a) Equity Share Capital 197.04 197.04 197.04 197.04 197.04
(b) Reserves and Surplus 6856.67 5527.07 5329.45 4491.35 3831.42
(c) Non Controlling Interest 4.96 4.75 4.42 4.10 3.61
Total Equity 7058.67 5728.86 5530.91 4692.49 4032.07

Liabilities
Non Current liabilities
- Other financial liabilities - - 6.79 6.73 6.70
(b) Government grants 55.35 77.54 4.53 5.31 6.26
(c) Deferred tax liabilities (net) 3.33 3.89 105.60 76.97 55.55
(d) Non Current tax liabilities (net ) - 85.14 - 0.30 -
(e) Provisions 1.14 1.11 0.74 0.54 0.41
Total Non - Current Liabilities 59.82 167.68 117.66 89.85 68.92

Current liabilities
- Trade payables 273.78 316.69 229.40 81.92 72.16
- Other current financial liabilities 222.77 221.22 184.35 198.37 153.65
(b) Government grants 0.56 0.64 0.78 0.95 1.18
(c) Short term provisions 240.39 21.09 17.66 15.86 19.22
(d) Other current liabilities 90.44 51.38 116.96 194.61 34.42
Total current liabilities 827.94 611.02 549.15 491.71 280.63

TOTAL EQUITY AND LIABILITIES (1+ 2+ 3) 7946.43 6507.56 6197.72 5273.96 4381.62
Particulars 2021 2020 2019 2018 2017

Revenue from Operations 3176.89 3519.85 3,782.54 2,963.02 2,645.72
Other Income 306.84 260.65 227.11 142.27 153.80

Total Income (1+2) 3483.73 3780.5 4,009.65 3,105.29 2,799.52
Expenses
(a) Operating and Direct Expenses 471.26 573.02 533.31 391.43 319.25
(c) Employee benefits expense 307.12 323.22 329.86 314.54 273.51
57
(d) Depreciation and Amortisation expense 403.92 700.2 662.81 449.99 400.45
(e) Finance Costs 26.86 12.75 1.65 1.08 1.03
(f) Other Expenses 327.13 347.69 312.69 253.29 283.12
Total Expenses 1536.29 1956.88 1840.32 1410.33 1277.36

Profit Before Share of profit from Joint Venture 1947.44 1823.62 2169.33 1694.96 1522.17
and Tax (3 - 4)
Share of Profit from Joint Venture -6.42 -4.17 15.41 22.98 28.75
Profit Before Tax (5 + 6) 1941.02 1819.45 2184.74 1717.94 1550.92
Tax Expenses
(a) Current tax 465.04 454.32 722.8 558.26 488.26
(b) Deferred tax 373.64 - 28.26 24.16 31.99
Total -422.9 -20.36 751.06 582.42 520.25
Profit after tax (7 - 8) 415.78 433.96 1433.68 1135.52 1030.66
Profit for the attributable to
-Owners of the Company 1525.03 1385.49 1433.27 1135.12 1030.26
-Non Controlling interest 0.21 0.33 0.41 0.4 0.41
Other Comprehensive Income for the year
Items not to be reclassified to profit or loss in
subsequent periods:
Remeasurement gains and (losses) on defined 1.66 0.04 -1.15 -0.64 -1.53
benefit obligations (net of taxes)
Share of other comprehensive income of equity -0.05 0.14 -0.16 -0.23 -
accounted investees

Other Comprehensive Income for the year
attributable to:
- Owners of the Company 1.58 0.18 -1.29 -0.86 -1.52
- Non- Controlling interest 0.03 0 -0.02 -0.01 -0.01

Total Comprehensive income for the year (9 + 1526.85 1385.67 1432.37 1134.65 1029.13
10)
Total Comprehensive Income for the year
attributable to:
- Owners of the Company 1526.61 1385.34 1431.96 1134.25 1028.73
- Non- Controlling interest 0.24 0.33 0.41 0.4 0.41

Paid-up equity share capital (Face value of 197.04 197.04 197.04 197.04 197.04
Rs.5.00 /- each)
Reserves excluding revaluation reserves (i.e., 6856.67 5527.07 5329.45 4491.35 3831.42
Other Equity)
Earnings per share (Face value of Rs.5.00 /- 38.7 35.16 36.38 28.81 26.15
each) - Basic and Diluted - in Rs.
PVR
Income Statement for 5 years (2017-2021)
For the Fiscal Period Ending Mar-31-2019 Mar-31-2021

Mar-31-2020
Mar-31-2017 Mar-31-2018
58
Revenue 21,194.3 23,341.1 30,855.6 34,144.4 2,800.1
Other Revenue - - - - -
Total Revenue 21,194.3 23,341.1 30,855.6 34,144.4 2,800.1
Cost Of Goods Sold 6,968.7 7,906.3 10,580.6 11,409.6 729.6

Gross Profit 14,225.6 15,434.8 20,275.0 22,734.8 2,070.5
Selling General & Admin Exp. 6,527.6 7,059.7 8,915.0 5,194.5 2,170.8
Provision for Bad Debts - - - 22.8 -
Depreciation & Amort. 1,383.8 1,484.9 1,850.8 5,354.1 5,748.2
Other Operating
4,126.1 4,216.3 5,389.3 6,711.8 3,249.0
Expense/(Income)
Other Operating Exp., Total 12,037.5 12,760.9 16,155.1 17,283.2 11,168.0
Operating Income 2,188.1 2,673.9 4,119.9 5,451.6 (9,097.5)
Net Interest Exp. (595.3) (663.8) (798.9) (4,259.4) (4,978.4)
Income/(Loss) from Affiliates - (7.3) (11.5) (5.4) (5.9)

Currency Exchange Gains (Loss) 2.1 0.1 6.2 4.7 -
Other Non-Operating Inc. (Exp.) (25.2) (34.7) (291.0) (296.2) 400.6
EBT Excl. Unusual Items 1,569.7 1,968.2 3,024.7 895.3 (13,681.2)
Merger & Related Restruct.

(16.2) - - - -
Charges
Gain (Loss) On Sale Of Invest. 54.1 14.1 30.0 48.5 -
Gain (Loss) On Sale Of Assets (63.6) (3.7) (14.3) 4.3 -
Asset Writedown (24.5) (52.0) (62.0) (70.5) -
Other Unusual Items 8.9 18.0 11.9 18.3 4,292.8
EBT Incl. Unusual Items 1,528.4 1,944.6 2,990.3 895.9 (9,388.4)
Income Tax Expense 570.0 704.4 1,096.3 627.4 (1,906.3)

Earnings from Cont. Ops. 958.4 1,240.2 1,894.0 268.5 (7,482.1)
Minority Int. in Earnings (0.5) 6.8 4.3 4.5 4.2

Net Income 957.9 1,247.0 1,898.3 273.0 (7,477.9)
Per Share Items

Basic EPS 20.5 26.68 39.77 5.5 (135.64)
Diluted EPS 20.5 26.57 39.52 5.47 (135.64)
Book Value/Share 206.47 230.08 320.01 288.27 320.74

Dividends per Share 2.0 2.0 2.0 4.0 NA
Share Price(Rs.) 1,408.55 1,287.35 1,680.5 1,060.35 1,478.35
Face Value(Rs.) 10 10 10 10 10
Balance Sheet for 5 Years(2017-2021)
Balance Sheet as of: Mar-31-2017 Mar-31-2018 Mar-31-2020

Mar-31-2019 Mar-31-2021
ASSETS
Cash And Equivalents 247.5 277.6 281.7 3,155.9 7,314.1
Short Term Investments 50.7 49.5 59.3 65.9 208.6
Total Cash & ST Investments 298.2 327.1 341.0 3,221.8 7,522.7
59
Accounts Receivable 1,054.4 1,575.3 1,946.3 1,991.3 306.9
Other Receivables 184.0 191.7 106.8 152.9 -
Notes Receivable 52.5 127.5 118.3 86.7 76.3
Total Receivables 1,290.9 1,894.5 2,171.4 2,230.9 383.2
Inventory 190.4 198.0 303.4 306.7 249.5

Prepaid Exp. 109.7 129.2 275.6 119.4 -
Other Current Assets 914.7 428.7 842.2 1,657.3 1,867.3
Total Current Assets 2,803.9 2,977.5 3,933.6 7,536.1 10,022.7
Gross Property, Plant &

13,765.7 15,683.7 21,931.8 57,485.6 -
Equipment
Accumulated Depreciation (2,262.7) (3,397.3) (4,824.1) (9,533.2) -
Net Property, Plant & Equipment 11,503.0 12,286.4 17,107.7 47,952.4 44,629.5
Long-term Investments 14.5 204.7 115.9 21.3 220.4

Goodwill 4,336.5 4,344.7 10,533.0 10,520.4 10,520.4
Other Intangibles 303.0 284.3 1,992.1 1,934.6 1,773.1
Loans Receivable Long-Term - 1,928.2 2,300.5 2,395.6 2,470.6
Deferred Tax Assets, LT 432.6 156.0 106.8 2,063.1 3,993.7
Deferred Charges, LT 682.8 698.8 1,092.5 - -
Other Long-Term Assets 2,180.6 607.8 1,326.5 1,868.5 1,395.2
Total Non Current Assets 19,453.0 20,510.9 34,575.0 66,755.9 65,002.9
Total Assets 22,256.9 23,488.4 38,508.6 74,292.0 75,025.6
LIABILITIES
Accounts Payable 1,976.2 2,511.1 3,677.1 3,124.3 2,031.6
Accrued Exp. 507.1 588.9 708.6 802.5 43.1
Short-term Borrowings 1,250.8 998.3 851.5 1,873.4 1,209.4
Curr. Port. of LT Debt 842.2 1,631.8 1,717.5 1,939.1 0
Curr. Port. of Leases 52.4 59.4 67.3 2,023.6 2,420.5
Unearned Revenue, Current - 508.4 1,762.0 2,074.7 -
Other Current Liabilities 1,442.6 707.2 1,748.3 1,067.2 5,600.5
Total Current Liabilities 6,071.3 7,005.1 10,532.3 12,904.8 11,305.1
Long-Term Debt 5,763.5 5,388.2 10,027.5 9,134.4 9,803.1

Long-Term Leases 286.9 227.4 160.1 35,691.1 34,091.0
Unearned Revenue, Non-Current - - 1,849.9 570.9 523.7
Pension & Other Post-Retire.
34.3 55.9 98.3 66.8 -
Benefits
Def. Tax Liability, Non-Curr. 9.1 5.9 373.1 14.3 7.1
Other Non-Current Liabilities 36.7 44.2 505.9 1,104.6 961.6
Total Non Current Liabilities 6,130.5 5,721.6 13,014.8 46,582.1 45,386.5
Total Liabilities 12,201.8 12,726.7 23,547.1 59,486.9 56,691.6
Equity Share Capital 467.4 467.4 467.4 513.5 607.6

Additional Paid In Capital 4,712.4 4,712.4 4,712.4 12,262.7 -
Retained Earnings 3,930.7 4,866.1 6,604.3 2,221.1 -
Comprehensive Inc. and Other 539.6 707.7 3,172.8 (195.1) 17,726.3
Total Common Equity 9,650.1 10,753.6 14,956.9 14,802.2 18,333.9
Minority Interest 405.0 8.1 4.6 2.9 0.1
Total Equity 10,055.1 10,761.7 14,961.5 14,805.1 18,334.0
Total Liabilities And Equity 22,256.9 23,488.4 38,508.6 74,292.0 75,025.6
60

Financial Accounting Report: Financial Analysis of Media & Entertainment Industry

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FINANCIAL ACCOUNTING REPORT

Guide: Prof. (Dr.) Ashish Kumar

FINANCIAL ANALYSIS OF MEDIA & ENTERTAINMENT

Roll Number Name Company

MBA21081 Ankit Kumar Zee

MBA21086 Athul A S Network18

MBA21099 John VL Fanai Sony Pictures Network

MBA21258 Darshika Dish TV

MBAA21012 Arunima Singh Sun TV Network

MBAA21013 Ashrika Gupta PVR

PROFIT MARGIN RATIOS

EBITDA Margin = EBITDA / Sales

2017 2018 2019 2020 2021

Net Profit Margin

Net Profit Margin = Net Income / Sales

2017 2018 2019 2020 2021

Asset Turnover Ratio

Asset Turnover Ratio

Zee Network18 Sony Pictures Network

Debt/ Equity Ratio

Debt/ Equity Ratio = Total Debt / Equity

Debt Capitalization Ratio = Debt / (Debt + Equity)

Debt Capiti lizati on Rati o

2017 2018 2019 2020 2021

Interest Coverage Ratio

Interest Coverage Rati o

2017 2018 2019 2020 2021

Total Debt Service ratio

Total Debt Service Rati o

2017 2018 2019 2020 2021

Earnings per share

Earnings Per share = Net Income / No of share outstanding

Dividend per Share

2017 2018 2019 2020 2021

Price to Earnings Ratio

Price to Earnings Rati o

2017 2018 2019 2020 2021

Price to Book value rati o

2017 2018 2019 2020 2021

Return on Total assets ratio

Return on Total assets ratio = EBIT/Total Assets

Return on Total Assets

2017 2018 2019 2020 2021

Return on equity ratio

Return on equity ratio = Net Income / Equity

Return on Equity rati o

Zee Network18 Sony Dish TV Sun TV Network PVR

2017 2018 2019 2020 2021

Return on capital employed ratio = EBIT / Total Assets - Current Liabilities

Return on Capital Employed rati o

2017 2018 2019 2020 2021

Equity Turnover Ratio

Equity Turnover Ratio = Sales/Equity

Equity Turnover Rati o

2017 2018 2019 2020 2021

FIVE-FACTOR DUPONT ANALYSIS

Therefore, by Five factor DuPont analysis,

 Dish TV: - https://www.dishtv.in/Pages/Investor/Financials-Reports.aspx