• Balaji’s programming continued to dominate the ratings chart. For the week ended April 1, 2006, out of the Top 25 shows, 24 shows were from Balaji

• Realization per hour from Commissioned Programming increased from Rs1.77 mn to Rs 2.22 mn.

•  Average realisation per hour increased from Rs 1.1 mn to Rs 1.3 mn

•  More than 2000 hours of programming during the year

• Successfully launched new shows on Star One and Zee.

• Cash and Cash Equivalents of Rs. 1686.10 mn as on March 31, 2006
  
  
• The Board of Directors has recommended a full and final dividend of Rs 3  per share (150% on par value of Rs 2 per share) amounting to Rs 1956.31 lacs, subject to the approval of members at the ensuing annual general meeting.

Results for the year ended March 31, 2006

The audited financial results for the year ended March 31, 2006 were taken on record by the Board at its meeting held on May 9, 2006.

The profit and loss account is summarized below:   (in Rs. mn except per share data)

Results for the quarter ended March 31, 2006

The audited financial results for the quarter ended March 31, 2006 were taken on record by the Board at its meeting held on May 9, 2006.

The profit and loss account is summarized below:   (in Rs. mn except per share data)

Management discussion and analysis on Audited Financial Results of the Company for the Quarter and Year ended 31.03.2006

Revenues

The Company recorded income from operations of Rs. 769.12 mn during the quarter, up 41.34% y-o-y.  Revenue contribution from commissioned programming was Rs.694.16 mn, up 51.18% y-o-y, while that of sponsored programming was Rs. 71.91 mn.  The share of commissioned programming in the revenues during the quarter was 90%, while that of sponsored programming was 10%. 

The revenue-wise distribution between commissioned and sponsored programming during the quarter ended March 31, 2006, March 31, 2005 and December 31, 2005, is as follows:

Channel Wise Revenue

The Channelwise Revenue distribution during the quarter ended March 31, 2006, March 31, 2005 and December 31, 2005, is as follows:

Programming Mix

Commissioned & Sponsored Programs

The hour wise programming distribution during the quarter ended March 31, 2006, March 31, 2005 and December 31, 2005, is as follows:

Other Income

The Other Income during the quarter was Rs. 12.28 mn against Rs. 24.27 mn in the corresponding quarter in the previous year. 

Dividend

The Board of Directors has recommended a full and final dividend of Rs  3  per share (150% on par value of Rs 2 per share) amounting to Rs 1956.31 lacs, subject to the approval of members at the ensuing annual general meeting.

Gross Block

The Company’s gross block increased from Rs. 559.28 mn in FY05 to Rs 669.52mn as on March 31 2006.

Investments

As on 31.03.2006, the Company’s investments were at Rs. 1623.86 mn.  The Company invested surplus funds in liquid/floating rate funds  with the principal aim of safety The market value of investments as on 31.03.2006 was Rs. 1665.46 mn.

Debtors

The Company’s debtors (in days of income) has decreased from 99 days in FY05 to 96 days in FY06.

Inventories

The Company’s inventories (in days of turnover) decreased from 44 days in FY05 to 15 days in FY06 since the two films carried in the inventory were released during the year. 

Loans and advances

Loans and advances decreased from Rs 174.53 mn in FY05 to Rs 170.48 mn in FY06.  The Company’s principal loans and advances comprised lease deposits for offices / studios.

Change in Programming during the quarter

The Company launched following serials during the quarter ended 31st March, 2006

The Following serial/s of the Company went off air during the quarter ended 31st March, 2006.

Serials on air

As on 31.03.2006 the following 20 serials of the Company were on air on various channels.

{(Source – TAM Ratings for the week ended 01/04/06, Category – Female 15 Plus)

For further information on results, please contact us on following nos.:

• V. Devarajan, Chief Financial Officer,/ Sandeep Jain,  Balaji Telefilms Limited, Tel: 91 22 26732275, Fax: 91 22 26732312, E-mail: devarajan@balajitelefilms.com , sandeep.jain@balajitelefilms.com
  
  

Safe Harbor

Certain statements in this update concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements.  The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company.

Mumbai, Hong Kong August 18, 2004 – STAR Group (STAR) and Balaji Telefilms Ltd. (Balaji) announce that Asian Broadcasting FZ-LLC (ABF), a STAR affiliate, and Balaji today reached a definitive agreement under which ABF would be issued approximately 13.694 million shares at Rs 90 per share to give it a 21% stake in Balaji by investing a total of Rs.1.23 billion in Balaji.  Following completion of the acquisition, which is subject to regulatory approvals, ABF expects to be able to hold up to 26% in Balaji following the public offer to the shareholders of Balaji as per the Takeover Regulations and/or through warrants that will be issued to it.  

The acquisition of Balaji is in line with STAR’s strategy of increasing content production in India .  Balaji is the largest content production company in India , producing shows in various languages including Hindi, Telugu, Tamil and Kannada.  Its television productions such as Kyunki Saas Bhi Kabhi and Kahaani Ghar Ghar Ki regularly top the ratings charts in the country.  

Commenting on the deal, Michelle Guthrie, CEO of STAR said, “We are excited to acquire a stake in Balaji, with whom we enjoy a productive and rewarding relationship.  Balaji, under the continuing management and leadership of the Kapoors and with its unique pool of creative talent, has become one of the most important companies in the evolving and increasingly competitive media arena in India .  As STAR continues to expand its services and offer more choices to viewers, we see enormous strategic benefits from strengthening our relationship with Balaji.”  

Mr. Jeet endra Kapoor, Chairman, Balaji Telefilms Limited said, “We are excited about having Star as an investor in the company.  We believe that the investment made in the company would assist in achieving a higher level of growth and in the process generate significant value for all the stakeholders.”  

Ambit Corporate Finance Pte Ltd. acted as the exclusive financial advisor to Balaji Telefilms Limited for the above transaction.  

About ABF  

ABF is an affiliate of STAR.  STAR is Asia ’s leading multiplatform content and service provider.  STAR’s over 40 television services in seven languages reach more than 300 million viewers across 53 Asian Countries. STAR channels include Star Chinese Channel, Star Chinese Movies, Star Gold, Star Movies, Star News, Star Plus, Star Utsav, Star World, Xing Kong, Channel [V], ESPN, Star Sports, Vijay, Phoenix Chinese Channel, Phoenix Info News Channel as well as the distributed channels National Geographic Channel, A1 and The History Channel.  STAR also owns the world’s largest contemporary Chinese film library, with more than 600 titles featuring superstars including Bruce Lee, Jackie Chan, Jet Li, Chow Yun Fat and Michelle Yeoh.  Additionally, STAR has interests in cable system in India and Taiwan .  Its services also extend to interactive cable TV, radio, wireless and digital media platforms.  For more information about STAR, please visit www.startv.com.  

About Balaji  

Balaji Telefilms Limited is one of the most successful media companies and the largest fiction based Television content provider in India .  The Company is primarily engaged in the production of Television software in Hindi, Telegu, Tamil, Malayalam and Kannada.  Balaji Telefilms Limited has been promoted by actor Jeet endra, Shobha Kapoor and Ekta Kapoor and has to its credit many successfully serials, including Kynki Saas Bhi Kabhi Bahu Thi, Kahaani Ghar Ghar Ki, Kusumm, Kasauti Zindagi Kay, Hum Paanch (all in Hindi), Pavitrabandhanam, Kalisundaram Ra (Telugu), Kulla Villakku (Tamil), Kavyanjali (Malayalam).  Balaji Telefilms Limited has a large content library and its programmes have consistently appeared in the top 50 programmes on all major Television Channels.  The Company’s vision is to emerge as a complete media house covering the widest genres of Television programmes.  For more information about Balaji Telefilms Limited, please visit www.balajitelefilms.com    

Press contacts:  

STAR:  

Hong Kong
Jannie Poon

Tel 852-26218728
Email : janniep@startv.com
 

Balaji Telefilms Limited:  

R. Karthik

Tel 91-22-26732275
Email : karthik@balajitelefilms.com