INTERPRETATION

ZEE ENTERTAINMENT ENTERPRISES LTD.

Submitted to- Dr. Nitin Tanted Sir Submitted by- Ankit Patidar
FA-B 1 ST Semester
HORIZONTAL ANALYSIS
Horizontal analysis is used in the review of a company's financial statements over multiple
periods. It is usually depicted as percentage growth over the same line item in the base year.
Horizontal analysis allows financial statement users to easily spot trends and growth
patterns.
PROFIT AND LOSS A/C:
1. As of year in 2017-18 and 2018-19 we can see that sales have been increased by
6.73% as well as expenses have also been increased to the extent of of 5.22%, thus
the profits which includes (operating profit + other income + interest) have been
increased to an extent of 76.58%, also the depreciation is increased by 6.67% and
there is a massive increment in PBT i.e. 195.83% and after reduction in tax we can
see that the net profit is increased to the extent of 188.24% thus we can conclude
that zee entertainment did a commendable job by increasing its net profit to around
190%....
2. As of year in 2018-19 and 2019-20 we can see that sales have been increased by
8.75% as well as expenses have also been increased to the extent of of 8.50%, thus
the profits which includes (operating profit + other income + interest) have been
increased to an extent of 11.83%, also the depreciation is increased by 13.24% and
there is a deficit in PBT i.e. (-34.51) % and after reduction in tax we can see that the
net profit is decreased to the extent of (-24.59) %.
3. As of year in 2019-20 and 2020-21 we can see that sales have been declined by
2.75% as well as expenses have also been decreased to the extent of of 3.59%, thus
the profits which includes (operating profit + other income + interest) have been
increased to an extent of 35.30%, also the depreciation is increased by 42.20% and
there is a first time decrease in PBT in study i.e. 24.73% and after reduction in tax we
can see that the net profit is increased to the extent of 27.03 %.
4. As of year in 2020-21 and 2021-22 we can see that sales have been massive
declined by 45%due to covid as well as expenses have also been decreased to the
massive extent of of 40.51%, thus the profits which includes (operating profit + other
income + interest) have been decreased to an extent of 130%, also the depreciation
is decreased by 6.45% and decrease in PBT i.e. 353 % and after reduction in tax we
can see that the net profit is decreased to the extent of 225.53%. thus we can say
that covid played a vital role this year and hampered the company which we can see
in profit and loss A/C..

BALANCE SHEET:
1. As of year in 2017-18 and 2018-19 we can see that TOTAL ASSETS and TOTAL
LIABILITIES have increased to an extent of 10.76%.
 2. As of year in 2018-19 and 2019-20 we can see that TOTAL ASSETS and TOTAL
LIABILITIES have increased to an extent of 6.58%.
3. As of year in 2017-18 and 2018-19 we can see that TOTAL ASSETS and TOTAL
LIABILITIES have increased to an extent of 9.9%.
4. As of year in 2017-18 and 2018-19 we can see that TOTAL ASSETS and TOTAL
LIABILITIES have decreased to an extent of 5.45%. DUE TO COVID…..

VERTICAL ANALYSIS
Vertical analysis is a method of analyzing financial statements that list each line item as a
percentage of a base figure within the statement. The first line of the statement always
shows the base figure at 100%, with each following line item representing a percentage of
the whole.
PROFIT AND LOSS A/C:
1. As on year 2017-18 we put sales as a constant variable and its value is 100%. And we
compare it with operating profit which is around 5.71% and after that PBT IS 1.70% to that of
total sales and net profit stands for 1.20%.
2. As on year 2018-19 we put sales as a constant variable and its value is 100%. And we
compare it with operating profit which is around 7.01% and after that PBT IS 4.71% to that of
total sales and net profit stands for 3.25%.
3. As on year 2019-20 we put sales as a constant variable and its value is 100%. And we
compare it with operating profit which is around 7.23% and after that PBT IS 2.84% to that of
total sales and net profit stands for 2.26%.
4. As on year 2020-21 we put sales as a constant variable and its value is 100%. And we
compare it with operating profit which is around 8.04% and after that PBT IS 2.20% to that of
total sales and net profit stands for 2.95%.
5. As on year 2021-20 we put sales as a constant variable and its value is 100%. And we
compare it with operating profit which is around 0.51% and after that PBT IS (-10.1) % to
that of total sales and net profit stands for (-6.74) %.

RATIOS:
1. EFFICENCY RATIOS
a. Asset turnover ratio: The asset turnover ratio measures the efficiency of a company's
assets in generating revenue or sales. It compares the dollar amount of sales (revenues) to
its total assets as an annualized percentage. Thus, to calculate the asset turnover
ratio, divide net sales or revenue by the average total assets. The golden number for an
inventory turnover ratio is anywhere between 2 and 4. While the assets turnover for zee
entertainment company is getting lower year by year. This is not a good sign hence they need to
improve it.

b. Fixed asset turnover ratio: It compares the dollar amount of sales (revenues) to its total
assets as an annualized percentage. Thus, to calculate the asset turnover ratio, divide net
sales or revenue by the average total assets. One variation on this metric considers only a
company's fixed assets (the FAT ratio) instead of total assets. Broadly, most analysts
consider a ratio of above 1.0 to be good. However, as the Asset Turnover Ratio varies a lot
between industries. While the fixed assets turnover for zee entertainment company is getting
lower year by year. In current the ratio is 1.61 for 2020-21.

2. LEVERAGE RATIO
a. Debt ratio: A company's debt ratio can be calculated by dividing total debt by total assets.
A debt ratio of greater than 1.0 or 100% means a company has more debt than assets while
a debt ratio of less than 100% indicates that a company has more assets than debt. In
general, many investors look for a company to have a debt ratio between 0.3 and 0.6. From
a pure risk perspective, debt ratios of 0.4 or lower are considered better, while a debt ratio of
0.6 or higher makes it more difficult to borrow money. While the debt ratio for zee
entertainment company is getting lower year by year. In current the ratio is 0.62 for 2020-21.
b. Equity ratio:  The equity ratio is a measure of the relative contribution of the creditors and
shareholders or owners in the capital employed in business. Simply stated, ratio of the total
long term debt and equity capital in the business is called the equity ratio. Equity ratios that
are 0.50 or below are considered leveraged companies; those with ratios of 0.50 and above
are considered conservative, as they own more funding from equity than debt. While the
equity ratio for zee entertainment company in current the ratio is 0.015 for 2020-21.

c. Proprietary ratio: The proprietary ratio is expressed in the form of a percentage and
is calculated by dividing the shareholder’s equity with the total assets of the business.
Proprietary Ratio or Net Worth Ratio Ideal ratio: 0.5:1 Higher the ratio better the long term
solvency (financial) position of the company. While the proprietary ratio for zee entertainment
company in current the ratio is 1.51 for 2020-21.

3. LIQUIDTY RATIO
a. Current ratio: The current ratio is a liquidity ratio that measures a company's ability to pay
short-term obligations or those due within one year. It tells investors and analysts how a
company can maximize the current assets on its balance sheet to satisfy its current debt and
other payables. While the range of acceptable current ratios varies depending on the specific
industry type, a ratio between 1.5 and 3 is generally considered healthy. ... A ratio over 3
may indicate that the company is not using its current assets efficiently or is not managing its
working capital properly. While the current ratio for zee enetertainment company is getting lower
year by year. In current the ratio is 2.6 for 2020-21. This shows that company is having a good
current ratio.

b. cash ratio: The cash ratio is a liquidity measure that shows a company's ability to cover its
short-term obligations using only cash and cash equivalents. The cash ratio is derived
by adding a company's total reserves of cash and near-cash securities and dividing that sum
by its total current liabilities. There is no ideal figure, but a cash ratio is considered good if it
is between 0.5 and 1. For example, a company with $200,000 in cash and cash equivalents, and
$150,000 in liabilities, will have a 1.33 cash ratio. While the cash ratio for zee entertainment
company is getting increased year by year. The cash ratio is 0.45 for 2020-21. This shows that
company is having a good cash ratio.

Zee Entertainment Enterprises Limited (ZEEL) is a media and entertainment company

engaged in providing broadcasting services. The company operates through content and
broadcasting segment. The company has a library, housing over 260,000 hours of television
content. The company holds rights to approximately 4,800 movie titles. The company's brands
include Zee TV, Zee Cinema, Zee Action, Zee Classic, Zee Anmol, Zee Cafe, Zee Studio, Zee
Salaam, Zing, ETC Bollywood, Zee Q and Zindagi. The company has a range of offering in the
regional language domain with channels, such as Zee Marathi, Zee Talkies, Zee Bangla, Zee
Bangla Cinema, Zee Telugu, Zee Kannada, Zee Tamil and Sarthak TV. Its high definition
offerings include Zee TV HD, Zee Cinema HD, & tv HD, Zee Studio HD, Zee Cafe HD, &pictures
HD, Ten 1 HD and Ten Golf HD.