COMPANY FACTS

As India's first and the country's largest fully integrated media and entertainment company, Zee
Entertainment Enterprises Limited's unique combination of businesses and growth opportunities both in
India and globally, give us a unique position in the global media space. From Zee TV, Zee Cinema, Zee
Music to Zee sports and Ten sports, from ETC Networks to English Channels, our Company brings
together the most valuable media brands, which will support our commitment to deliver consistent growth.

Employees
1150 + (This includes ZEEL and its subsidiaries as per the 27 th Annual General Meeting held on August
18, 2009)

Locations

Corporate Office: Worli, Mumbai, India

Registered Office: Worli, Mumbai, India
Global offices: Canada, Hong Kong, India, Singapore, South Africa,
United Arab Emirates, United Kingdom and United States of America
STOCK PRICE

Zee Stock
INR 242.15 [2.55]
Nov 06,09

BANKERS
BNP Paribas ,IDBI Bank, ING Vyasa Bank, UTI Bank Limited Standard Chartered Bank

AUDITORS
Indian GAAP: MGB & Company
US GAAP: Deloitte & Touche

AWARDS

• Zee Telefilms was among the ten Indian Companies in the Forbes International 200 Small Best
Companies selected from among 20,000 small companies worldwide for the year 2001.
• Zee awarded "BSE Award for Maximisation of Shareholders Wealth - 2000"
• Subhash Chandra awarded "Entrepreneur of the Year" by Ernst & Young in 1999
• Subhash Chandra awarded "Businessman of the Year" by Business Standard in 1999
• Zee awarded "Emerging Company of the Year" by The Economic Times in 1998
• Zee TV UK was awarded the MACE (Multicultural Awards for Competitiveness and Enterprise -
Leadership in Best Practice) sponsored by the UK Trade and Investment.
• Zee awarded "Ground Breaker Award from Multichannel News International for its achievements
in developing programme networks and related businesses"
 • In the Fifth Anniversary issue, Finance Asia, rated Zee Telefilms as the Fourth best company in
Asia and as one of the most successful Asian Corporates in producing value for its shareholders.

STOCK QUOTES

Last Trade Prev Cls Days Range Volume

242.15 244.00 239.70-250.95 394,156
Change Open 52-Week Mkt Cap
2.55 244.00 Range INR millions
1.06% 261.00-88.00 105,093

Splits
Dec-06-99 [10:1]

PRICE WATCH

Best Orders Trd. Value

Security LTP Buy Qty Buy Price Sell Price Sell Qty (Rs. lakhs)
Equity Shares 243.70 639 243.25 - - 5343.32
Most Active Futures
245.00 14000 244.50 245.00 5600 3041.32
26-NOV-2009
Most Active Call
- - - - - -
(255.00) 31-DEC-2009
Most Active Put
- 1400 0.05 - - -
(195.00) 26-NOV-2009
Most Active Nifty Futures
4797.00 13100 4797.00 4797.05 14600 1424763.46
26-NOV-2009
Most Active Midcap
Futures 2448.90 300 2421.00 2490.00 300 29.62
26-NOV-2009
Company Information Corporate Actions

Zee Entertainment Enterprises Ltd Ex-Date Purpose

Date of Listing (NSE) : 09-Sep-1998 06-Aug-2009 : AGM/DIV-RS.2/- PER SHARE
Face Value : 1.00 17-Jul-2008 : AGM/DIVIDEND-200%
ISIN : INE256A01028 08-Aug-2007 : AGM/DIVIDEND-150%
Industry : MEDIA & ENTERTAINMENT 12-Feb-2007 : SCHEME OF ARRANGEMENT
Constituent Indices : CNX 500,JR. NIFTY,CNX 18-Dec-2006 : SCH OF ARNGMNT/DIV-100%
100,CNX Midcap PURPOSE REVISED
Issued Cap. : 434007111(shares) as on 06-Nov-
2009
Market Cap. : Rs. 10576.75(Cr) as on 06-Nov-
2009
Impact Cost: 0.16 as on Oct-2009
52 week high/low price : 261.85/88.00

FINANCIALS HIGHLIGHTS FY2009

The financials given below represents the performance of Zee Entertainment Enterprises Limited for the
year ended March 31, 2009.

Revenue: INR 21.77 billion (US$ 468 million)

EBITDA INR 5.48 billion (US$ 117 million)
PAT INR 5.12 billion (US$ 110 million)
EPS INR 8.8 (US$ 0.19)
Shares outstanding INR 434 million (US$ 9.34 million)
Market Cap
(March 31, 2009) INR 46.16 billion (US$ 993 million)
PE Ratio (as at March 31, 2009) 9
No. of Shareholders 95, 963
Dividend INR 2 per share annually
USD/INR conversion taken at an average rate of (INR 46.46 = 1 US$)

FINANCIAL PERFORMANCE

48.
Advertisement Income/Income from Operations (%)
6
41.
Subscription Income/Income from Operations (%)
5
25.
Operating Margins/Income from Operations (%)
2
21.
Net Margins/ Total Income (%)
9
29.
Effective Tax Rate/ PBT (%)
4
16.
Dividend Payout/PAT (%)
9

Balance Sheet
16.
D/E ratio (Loans/ Effective Networth) (%)
9
Current ratio (Current Assests/ Current Liabilities) (x) 4.7
15.
RONW (PAT/Effective Networth) (%)
1
16.
ROCE (PBIT/Effective Capital employed) (%)
6

Per Share Data (Annualised)

Revenue per share INR 53.8
Dividend per share INR 2
Indebtedness per share INR 13.3
Book value per share INR 78.3
Earnings per share (after prior period adjustments) INR 11.8
Price/EPS Ratio (Share price as of March 31, 2009) (x) 9

LAST FIVE YEARs FINANCIAL HIGHLIGHTS

Year Ending March 31

Consolidated Standalone
2009 2008 2007 2006 2005 2009 2008 2007 2006
2005
Revenue Account
Income from Operations 21,773 18,354 15,159 16,543 13,252 12,102 10,420 8,677 8,314
6,473
Total Expenses 16,293 12,931 11,955 13,848 8,900 8,493 6,334 6,556 7,525
4,091
Operating Profit 5,480 5,423 3,204 2,695 4,352 3,609 4,086 2,121 789
2,382
% to Income from Operations 25% 30% 21% 16% 33% 30% 39% 24% 9%
37%
Other Income 1,572 1,138 747 640 521 1,051 1,019 614 510
458
PBIDT 7,053 6,561 3,951 3,335 4,873 4,660 5,105 2,735 1,299
2,840
Financial Expenses 1,339 516 334 188 206 779 430 189 140
165
Depreciation / Amortisation 310 232 185 360 329 119 106 85 148
139
Profit Before Tax &
Exceptional Items 5,403 5,813 3,432 2,787 4,338 3,762 4,569 2,461 1,011
2,536
Exceptional Items (26) 26 – (20) 141 (26) 26 – (19)
53
Taxation 208 1,627 999 547 1,023 690 1,592 799 339
860
Profit After Tax &
before exceptional items 5,195 4,186 2,433 2,240 3,315 3,072 2,977 1,662 672
1,676
Profit After Tax & before
minority interest / share of
profits/(losses) in associates 5,221 4,160 2,433 2,260 3,174 3,097 2,951 1,662 691
1,623
Profit After Tax for the year 5,124 3,832 2,375 2,143 3,125 3,097 2,951 1,662 691
1,623
% to Total Income 22% 20% 15% 12% 23% 24% 26% 18% 8%
23%
Dividend 868 868 650 435 413 868 868 650 435
413
Dividend Rate 200% 200% 150% 100% 100% 200% 200% 150% 100%
100%
Capital Account
Share Capital - Equity 434 434 434 413 412 434 434 434 413
412
Share Application Money – – –
Share Capital - Preference – – –
Deferred Tax Balances (113) (243) (75) (148) (219) (40) (66) 12 (6)
(55)
Capital Employed 40,587 33,351 30,150 26,368 30,018 25,099 23,259 21,904
20,156 26,533
Fixed Assets 18,093 15,605 14,841 12,948 15,373 1,583 1,285 1,054 1,153
1,792
Investments 1,271 2,516 2,326 3,024 3,744 13,496 13,495 13,459 13,448
15,475
Net Current Assets 21,223 15,230 12,981 10,384 10,851 10,021 8,480 7,391 5,549
9,252
Capital Deployed 40,587 33,351 30,150 26,368 30,018 25,099 23,259 21,904
20,156 26,533

PERFORMANCE RATIOS - AN ANALYSIS

Year Ending March 31

Consolidated Standalone
2009 2008 2007 2006 2005 2009 2008 2007 2006
2005
Financial Performance
Advertisement Income / Income
from Operations (%) 48.6% 50.7% 46.4% 39.7% 43.0% 64.9% 69.8% 58.9% 45.4%
50.2%
Subscription Income / Income
from Operations (%) 41.5% 40.5% 43.9% 43.4% 50.6% 18.5% 16.4% 19.1% 21.2%
32.1%
Operating Profit / Income
from Operations (%) 25.2% 29.5% 21.1% 16.3% 32.8% 29.8% 39.2% 24.4% 9.5%
36.8%
Other Income / Total
Income (%) 6.7% 5.8% 4.7% 3.7% 3.8% 8.0% 8.9% 6.6% 5.8%
6.6%
Programming Cost / Income
from Operations (%) 32.6% 28.2% 31.5% 25.7% 19.7% 40.6% 33.8% 46.1% 42.5%
29.9%
Total Operating Cost /
Income from Operations (%) 74.8% 70.5% 78.9% 83.7% 67.2% 70.2% 60.8% 75.6% 90.5%
63.2%
Financial Expenses / Income
from Operations (%) 6.2% 2.8% 2.2% 1.1% 1.6% 6.4% 4.1% 2.2% 1.7%
2.5%
Dividend Payout / PAT
for the year (%) 16.9% 22.6% 27.4% 19.3% 13.2% 28.0% 29.4% 39.1% 59.7%
25.4%
Dividend Payout / Effective
Networth (%) 2.6% 3.0% 2.5% 2.0% 1.7% 3.7% 4.1% 3.4% 3.2%
2.1%
Balance Sheet
Debt-Equity ratio (Total loans
/ Eff. Networth) (%) 16.9% 13.5% 12.3% 22.4% 21.7% 7.3% 9.6% 13.1% 34.7%
26.8%
Current ratio (Current assets
/ Current liabilities) (x) 4.7 3.4 3.5 3.4 3.4 3.4 2.6 2.8 2.3
3.2
Fixed assets Turnover (Inc from Ops / Fixed
assets) (x)
7.5 6.9 8.0 7.5 3.1 7.6 8.1 8.2
7.2 3.6
Per Share Data #
Revenue per share (Rs.) 53.8 45.0 36.7 41.7 33.4 30.3 26.4 21.4 21.4
16.8
Dividend per share (Rs.) 2.00 2.00 1.50 1.00 1.00 2.00 2.00 1.50 1.00
1.00
Indebtedness
per share (Rs.) 13.3 8.9 7 .4 11.6 12.9 3.9 4.7 5.9 11.4
12.7
Book value
per share (Rs.) 78.3 66.0 60.4 51.6 59.4 54.0 49.1 44.6 32.9
47.3
Earnings per share (after prior period
adjustments) (Rs.) 11.8 8.8 5.5 5.2 7.6
PE Ratio - Price / EPS Ratio
(Share Price as of March 31,) (x)
9.0 27.7 45.8 45.9 18.3

ARCHIES GREET

INTRODUCTION

Archies was the brainchild of Delhi-based Anil Moolchandani (Anil), whose family business was selling
saris. In the late 1970s, he decided to buy and sell good-quality posters through mail-order catalogs,
advertised in one of the popular magazines in those days, Sun.

When the demand increased, he started getting posters of film stars, natural sceneries and other subjects of
interest, printed by local printers. An avid music enthusiast, Anil decided to sell books containing lyrics of
hit English songs in addition to the posters. He wrote down the lyrics of songs himself while playing them
on a gramophone. He began to sell songbooks containing the lyrics of hits from groups such as ABBA,
Beatles and BoneyM. Commenting on his experiences, Anil said, "I would spend hours listening to a
sound track, meticulously translating lyrics which were initially incomprehensible, so when we finally
managed to sell the entire lot to a music shop in Chanakyapuri, we were so excited we could barely
contain our emotions."

As customer awareness increased, he started coming out with songbooks containing hits of a particular
year and he was soon selling over 10,000 copies per year.
He observed that in India, cards were typically sold out of dusty shoeboxes marked 'Birthday' and
'Anniversary' kept in the corners of stationery shops. In 1979, Anil and his brother Jagdish Moolchandani
(Jagdish) got 'Archies Gifts & Greetings' registered as a partnership concern for starting the greeting cards
business. The name Archies was chosen after Anil took a fancy to a neighbor's dog named Archie. During
a visit to South East Asia, Anil was impressed with the exclusive greeting card shops offering good
ambience and soft backdrop music. He said, "The card shops there were like a Raymond or Bata
showroom here. If we had to retail, we had to have a proper shop." He decided to try out this concept in
India as well, which led to the launch of the first Archies' outlet in Delhi in 1984, named 'Gift Gallery...'

Archies Greetings are famous for their unusual way of expressing emotional feelings. They are like silent
mediators who combines two hearts.Especially their Friendship and Love related cards wins hearts of
many.I have received several Archies cards from my friends. The way, they expressed their emotions was
really heart touching. They went deep inside into my heart and paved a path to understand their inner
feelings. Archies give more importance to the matter inside rather than the card appearance. These
greetings have capability to rebuild broken relations.Archies every card you take,definitely you will love
it. Whether it is related to friendship, love, miss you, awaiting, sorry, birthday, rakhi ,than Q or
anniversary , what ever it may be.each card is enjoyable and every matter is heart winning.

HISTORY OF COMPANY
1990

- Archies Greetings & Gifts Pvt. Ltd. was incorporated on 22nd May, and took over the partnership firm.
The Company was converted into a Public Limited Company. Subsequently a fresh certificate of
incorporation was issued on 7th April, 1995.

- The company is currently engaged in the manufacture and trading of wide range of cards, stationery and
gift items. The company manufactures about three lakh cards a day.

- The company entered into a technical collaboration with American Greetings Corp., USA for designs.
The items were sold under the brand name of "Paper Rose".

- Archies also entered into a technical collaboration agreement with Gibson Greetings Inc., USA for
production and marketing of their designs under the brand name "Fine Expressions".

1996

- The Company designed one or more concept for sending greeting cards called "Forgiveness Day". The
installation of some new state-of-the-art machines, increase in the number of galleries and general growth
in greeting card industry enabled the company to increase its turnover and consequently its profitability.

- 21,04,000 No. of equity shares of Rs 10 each issued, subscribed and paid-up. 11,46,000 No. of equity
shares were issued at a prem. of Rs 60 per share in May, of which 90,000 shares were issued and allotted
to promoters, directors on a firm allotment basis.
- Of the remaining 56,000 shares were reserved for allotment on a preferential basis to employees of the
company (only 8,600 shares taken up). Balance 10,00,000 shares along with 47,400 shares and taken up
by employees issued to the public. Additional 3,700 shares allotted to round off.

1998

- 76 franchisees were added and as at 31st March, 1999 there were 386 Franchisees.

- The Company appointed distributors in USA, UK and Canada. Besides the company has 14 franchisees
outside India.

- The company undertook to develop inhouse scanning facilities and install automatic envelope making
machinery, insert-pasting machinery, automatic greeting card folding machine, fully computerised paper
cutting machine, card packing machine and five colour offset printing machine.

- The Company came out with a novel concept of Vision 2000 stores which would be committed to
Archies with 85% of shelf space. Moreover the stores being bigger, would provide perfect ambience for
shopping with new consumer friendly furniture and fixtures of international quality.

- Also, a very innovative system of recorder ticketing was introduced for effective inventory control. Two
such stores, one at Nagpur and the other at Delhi were opened.

- To further strengthen the position in its core business, the company entered into a tie-up, with Portal
Publication USA for their exquisite range of cards, posters & streamers including the best selling cards of
Anne Geddes, the world renowned photographer.

- New Delhi-based Archies Greetings & Gifts Ltd (AG&G), has tied up with Kingsley of UK to launch
the `Kingsley' brand of greeting cards in India.

- Archies Greetings is a leader in the greeting cards segment. Besides, it manufactures stationery and other
gifts.

- Archies went public in 1996 with an issue of 10.56 lakh equity shares at a premium of Rs 60 per share
totalling Rs 7.40 crore. Of the company's Rs 3.25 crore post-issue equity, 67.51 per cent shares are held
by the Moolchandanis, 7 to 9 per cent by domestic funds and the balance is with the public.

2000

- The Company has launched a new range of greeting cards which are in Hindi. It has introduced a total of
45 designs.

- On the occasion of Ram Navami, Archies Music, a division of Archies Greetings and Gifts Ltd. has
introduced Ram-Ramaiya, a soulful rendition of Ram Bhajans.

- Archies Greeting and Gifts has launched a wide range of special cards, gifts and posters on the occasion
of Father's Day on 18th June.

- The Company has launched Sports Deodorant, in two variants, Boyz Sports and Gals Sports. - The
Company has launched e-cards for the forthcoming festivals of Navroz and Ganesh Chaturthi. - Archies
Greetings and Gifts Ltd. in a tie-up with Tera Jadoo Chal Gaya, has introduced a range of merchandise
featuring the film's stars, Abhishek Bachchan and Kirti Reddy. - Archies Greetings & Gifts is all set to
launch its new product "Third party gift" through archiesonline.com from September 16.

- Archies Parfum, a division of Archies Greetings & Gifts Ltd., has introduced a three-in-one gift pack for
Diwali.

- ARCHIESONLINE.COM a 100 per subsidiary of Archies Greetings & Gifts Ltd (AG&G Ltd) has
launched a unique gift package for the cyber crazy friends.

- Archies Parfun, a division of Archies Greetings and Gifts Ltd. has introduced a `Twin Christmas
Surprise' pack.

- Archies Music, the music division of Archies Greetings & Gifts Ltd, has launched two albums of
Christmas Carols. The Joy of X'Mas and The Magic of Christmas.

2002

-Archies Greetings & Gifts Ltd has informed BSE that the Company has tied-up with the following
parties for the sale of their products through its franchise network:

2004

-Archies Limited has informed that the equity shares of the Company have been voluntary delisted from
the Jaipur Stock Excange Ltd. w.e.f. November 29, 2003 and The Stock Exchange, Ahmedabad w.e.f.
January 15, 2004.

-Archies Limited has informed that the Equity shares of the Company have been voluntary delsited from
the following stock exchanges : 1) Madras Stock Exchange Ltd. wef January 19, 2004; 2) The Delhi Stock
Exchange Association Ltd. wef January 23, 2004; 3) Pune Stock Exchange Ltd .wef January 23, 2004.

2006

-Archies open its biggest Gallery in Pacific Taj, Agra

2007

-Archies Limited has informed that: "The Company Secretary Ms Rupa Sarkar has resigned w.e.f. 8th
December 2007 and Mr. P. C. Joshi will take charge w.e.f. 17th December 2007 as a Company Secretary
and Compliance Officer of the Company".
COMPANY PROFILE

Registered Office A-17, Naraina Industrial Area, Phase II New Delhi - 110028 Delhi India

Tel. 011-41412425/4141060

Fax 011-41410060

Website http://www.archiesonline.com

Chief Executive Name Mr. Anil Moolchandani

Secretary Name Mr. Vikas Kumar Tak

Industry Name Printing/Publishing/Stationery Registrar of Company MAS SERVICES PRIVATE

LIMITED
AB-4, SAFDARJANG ENCLAVE
New Delhi , Delhi , 110029
Tel :- 604142
Fax no :- 011-600128

Listed on National Stock Exchange of India Ltd. The Stock Exchange, Mumbai

CAPITAL STRUCTURE

From Year To Year Class Of Authorised Issued PaidUp Face Value PaidUp

Share Capital(Cr.) Capital(Cr.) Shares Capital(Cr.)

2008 2009 Equity Share 15.00 6.76 6756000 10 6.76

2007 2008 Equity Share 10.00 6.76 6756000 10 6.76

2006 2007 Equity Share 10.00 6.51 6506000 10 6.51

2005 2006 Equity Share 10.00 6.51 6506000 10 6.51

2004 2005 Equity Share 10.00 6.51 6506000 10 6.51

2003 2004 Equity Share 10.00 6.51 6506000 10 6.51

2002 2003 Equity Share 10.00 6.51 6506000 10 6.51

2001 2002 Equity Share 10.00 6.51 6506000 10 6.51

 2000 2001 Equity Share 10.00 6.51 6506000 10 6.51

1999 2000 Equity Share 10.00 6.51 6506000 10 6.51

1998 1999 Equity Share 5.00 3.25 3253700 10 3.25

1997 1998 Equity Share 5.00 3.25 3253700 10 3.25

1996 1997 Equity Share 5.00 3.25 3253700 10 3.25

1995 1996 Equity Share 5.00 2.10 2104000 10 2.10

BALANCE SHEET
Rs. cr
Period & months 2009/03 2008/03 2007/03 2006/03 2005/03
SOURCES OF FUNDS
Owned Funds
Equity Share Capital 6.76 6.76 6.51 6.51 6.51
Share Application Money 0.00 1.60 0.00 0.00 0.00
Preferential Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves & Surplus 72.92 73.51 61.70 53.83 48.70
Loan Funds
Secured Loans 17.18 19.44 13.18 4.68 5.15
Unsecured Loans 0.00 0.00 0.00 0.00 0.00
TOTAL 96.86 101.30 81.38 65.02 60.36

USES OF FUNDS
Fixed Assets
Gross Block 52.64 47.64 41.88 32.64 27.47
Accumulated Depreciation 17.09 14.22 11.82 10.10 8.70
Less: Revaluation Reserve 0.00 0.00 0.00 0.00 0.00
Net Block 35.56 33.41 30.07 22.54 18.76
Capital Work-in-progress 12.87 10.93 5.09 1.50 1.32

Investments 0.54 7.45 2.40 2.40 2.40

Net Current Assets

Current Assets, Loans & Advances 80.38 82.07 77.73 74.92 64.18
Less: Current Liabilities & Provisions 32.49 32.55 33.90 36.34 26.35
Total Net Current Assets 47.90 49.51 43.82 38.58 37.84
Miscellaneous Expenses not written off 0.00 0.00 0.00 0.00 0.03
TOTAL 96.86 101.30 81.38 65.02 60.36
Number of Equity shares outstanding (Cr.) 0.68 0.68 0.65 0.65 0.65
Bonus component in Equity Capital 4.13 4.13 4.13 4.13 4.13
Notes:
Book Value of Unquoted Investments 0.54 7.45 2.40 2.40 2.40
Market Value of Quoted Investments 0.00 0.00 0.00 0.00 0.00
Contingent liabilities 7.01 6.92 9.94 6.31 6.60
KEY FINANCIAL RATIOS
2008/03 2007/03 2006/03 2005/03 2004/03
Per Share
EPS 12.14 12.03 10.32 9.28 8.61
CEPS 16.18 15.74 13.46 11.82 11.06
Book Value 117.93 118.81 104.83 92.75 84.85
Dividend/Share 0.00 0.00 2.00 2.00 2.50
Operating Profit / Share 23.82 22.47 20.07 18.01 16.17
Net Operating Income / Share 174.52 160.93 131.20 114.20 103.32
Free Reserves / Share 108.81 94.83 82.75 74.80 67.78

Profitability Ratios
OPM 13.64 13.95 15.29 15.77 15.65
GPM 11.33 11.65 12.94 13.59 13.32
NPM 6.92 7.41 7.85 8.08 8.28
RONW 9.59 11.38 11.16 11.13 11.26

Liquidity ratios
Debt/Equity 0.24 0.19 0.07 0.09 0.04
Current Ratio 2.52 2.29 2.06 2.44 2.21
Quick Ratio 1.05 1.03 0.91 1.15 1.06
Interest Cover 9.75 12.86 17.69 19.10 18.00

Turn Over Ratios

Sales/Total Assets 2.90 2.38 2.39 2.21 1.96
Sales/Fixed Assets 2.86 2.66 2.98 3.55 3.70
Sales/Current Assets 1.73 1.44 1.35 1.14 1.16

Miscellaneous
No of Days of Working Capital 151.18 150.67 162.71 183.32 185.80
CAR 0.00 0.00 0.00 0.00 0.00
INVESTOR RETURNS

Bonus Announcements
Exchange Date of Announcement ExDate Ratio1 Ratio2
Bonus Announcements for BSE not available.
Bonus Announcements for NSE not available.

Rights Announcements
Exchange Date of Announcement ExDate Ratio1 Ratio2 Premium
Rights Announcements for BSE not available.
Rights Announcements for NSE not available.

Splits Announcements
Exchange Date of Announcement ExDate Ratio1 Ratio2 Remarks
Splits Announcements for BSE not available.
Splits Announcements for NSE not available.

Dividend
Dividend
Year Dividend / Share Face Value
%
2008 / 03 0.00 10 0.00
2007 / 03 0.00 10 0.00
2006 / 03 2.00 10 20.00
2005 / 03 2.00 10 20.00
2004 / 03 2.50 10 25.00

Profit and Loss

Rs. cr
Period & months 2009/03 2008/03 2007/03 2006/03 2005/03
INCOME
Net Operating Income 138.71 117.91 104.70 85.36 74.30

EXPENSES
Material Consumption 71.70 43.02 39.27 30.94 29.03
Manufacturing Expenses 2.80 7.09 4.35 4.39 5.17
Personel Expenses 0.23 15.37 12.33 8.64 6.66
Selling Expenses 0.00 13.48 14.44 13.03 11.10
Administrative Expenses 52.02 22.85 19.70 15.30 10.62
Capitalised Expenses 0.00 0.00 0.00 0.00 0.00

Cost of Sales 126.75 101.82 90.09 72.30 62.58

Reported PBDIT 11.96 16.09 14.62 13.06 11.72

Other Recuring Income 0.94 0.56 0.82 0.16 0.63

Adjusted PBDIT 12.90 16.65 15.43 13.22 12.05

Depreciation 3.02 2.73 2.41 2.00 1.62

Other Write-offs 0.00 0.00 0.00 0.03 0.04

Adjusted PBIT 9.88 13.92 13.02 11.19 10.39

Finanical Expenses 2.19 1.71 1.20 0.75 0.63

Adjusted PBT 7.69 12.22 11.82 10.43 9.77

Tax Charges 2.95 4.52 4.05 3.70 3.62

Adjusted PAT 4.74 7.70 7.76 6.74 6.14

Non-recurring Items -5.83 0.50 0.06 -0.02 -0.12
Other Non-cash Adjustments 0.00 0.00 0.00 0.00 0.00

REPORTED PAT -1.09 8.20 7.82 6.72 6.04

APPROPRIATIONS
Equity Dividend 0.00 0.00 0.00 1.30 1.30
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Retained Earnings -1.09 8.20 7.82 5.23 4.54

A COMPANY IN TROUBLE!

The case examines the growth of Archies, leader in the Indian social expression industry. It explores the
company's franchising and marketing initiatives.

The case also discusses the measures the company took to meet the threat of new technologies i.e., e-
greetings and SMS greetings. Finally, the case discusses the problems faced by the company due to a
revamp of its distribution and retail operations. It also explores the future plans of the company in the
light of the above developments.

In February 2002, the Delhi High Court dismissed an application for injunction filed by leading Indian
greeting card and gift company, Archies Greetings & Gifts Ltd. (Archies). The company wanted a stop
order to restrain Hindu fundamentalist groups - the Shiv Sena, the Vishwa Hindu Parishad (VHP) and the
Bajrang Dal - from 'interfering in the Valentine's Day celebrations and sales promotions in its showrooms
and outlets.'

Archies filed the application fearing that the groups will vandalize their outlets as they had in February
2001.The Court's decision shocked Archies'management, for any disruption of business on Valentine's
Day would translate into huge revenue losses for the company. Director Vijayant Chhabra said, "Everyone
knows what happened last year. Our outlets were targeted in Mumbai, Delhi and other parts of the country.
Our business has been affected severely." The dismissal of the injunction appeal came at a time when the
company was facing a host of problems on various other fronts that were taking a toll on its performance.
In the late-1990s, e-cards became very popular. Archies was forced to launch its own e-greetings website,
archiesonline.com, through its wholly owned subsidiary Archies Online.com Ltd. in mid-2000.

However, by late 2001, the company made archiesonline.com a paid service. Youhan Darrab
Aria (Aria), Chief Officer (Logistics and Finance) of the portal commented, "E-commerce was
not happening from our site as expected and ads were also not forthcoming. We wanted to
increase our revenue and charging users was the solution." As expected, a large number of
the 0.6 million registered users stopped using the service.

Aria admitted, "We have suffered massive drops in our registered user base since we became a paid site."
In addition to these problems, Archies' initiatives to convert its network of franchisee outlets into
company-owned outlets and its distributor setup into a carrying and forwarding2 (C&F) setup were
proving to be major burdens on its finances. As a result, in 2000-01, for the first time in it's over 20-year
history, the company experienced a negative growth. Turnover declined from Rs 710 million in 1999-2000
to Rs 680 million in 2000-01, while net profits for the same period declined by around 32% from Rs 130
million to Rs 91 million.3 Archies' marketshare remained at 45% between 1998 and 2000. Analysts
remarked that the company's leadership status in the Indian greeting card and gifts market seemed to be
doing it no good in increasing its market share and sustaining profitability.

THE STORY BEHIND THE SUCCESS

According to analysts, Archies' franchisee model contributed a great deal to its success. Bharat Shah, Chief
Investment Officer, Birla Capital the mutual fund company, said, "The key to understanding Archies is to
realize that it is not in the business of cards or gifts, but in franchisee management."

Anil agreed, "We made our own model suitable for Indian conditions. We created a branded franchise.
Now the scenario has changed in India and everybody talks about franchising. But we were the first to do
that kind of stuff. We then went in for tie-ups so as to get a greater range to support these stores because
these were exclusive stores." Commenting on the decision to opt for the franchising route from the very
beginning, Anil said, "You don't have malls in India so we have to manage in limited area." By
franchising, Archies was not only able to save on real estate costs, but share the advertising and promotion
expenditures with franchisees. Archies franchisees made their own investment in the business and paid
royalty to Archies for the turnover generated from the sale of Archies products...

TACKLING THE E-GREETINGS THREAT

Archiesonline.com had three major sections - meet, greet and gift. Under 'meet,' Archies
offered services such as free e-mail, chat, reminder services, and a greetings scheduler. The
'greet' section was a consumer interaction area where registered customers could send and
receive a variety of animated e-cards/greetings online for free.

Over 700 programmed e-cards available, which were quite different from the usual cards available on the
Internet - these cards had an average eight second long storyline with animation and sound effects
incorporated into them. In the 'gift' section, consumers could purchase gifts and get them delivered at their
doorstep.

While residents of Delhi got free delivery of their purchases, customers in other parts of the country had to
pay Rs 25 as delivery charges. The minimum value of each purchase was Rs 250. Archies tied up with
courier companies - Elbee and Blue Dart to deliver the gifts and cards purchased by customers. The
company tied up with Easy Net Com for the payment gateway

RATIONALIZATION GONE WRONG?

THE DISTRIBUTION REVAMP

During the financial year 1999-00, Archies decided to revamp its distribution network and replace existing
distributors by a C&F agent network. According to the new distribution system, in place of 68 distributors
in 21 states, Archies appointed 10 C&F agents in 10 states who catered to distributors who in turn reached
out to the retailers.

Manish Jain, Company Secretary, Archies, said, "The biggest advantage of this model is that the company
owns the inventory, so the consumer is ensured of seeing the entire products range that is available." In the
earlier setup, Archies had to accept the distributors' decision when they picked up only those products,
which they believed would do well. As a result, Archies could not push its entire range of products into the
retail channel. Rajesh Syal, Marketing Manager (Western Region), Archies, said, "Distribution could not
match the pace with which we introduced products and with their limited resources it was difficult. Now
with the C&F agents and exclusive outlets we can at least continue to revamp our product portfolio..."

THE RETAIL REVAMP

In 2001, Archies began an 'exclusivity drive,' by way of which all existing Archies Gallery franchisees
were asked to keep only Archies range of products. If they did not want to be an exclusive outlet, they
were given the option of converting into an Archies Paper Rose Shoppe on a 'non-exclusive' basis.

The idea was to have only Archies Gallery and Archies Paper Rose Shoppe as the completely franchised
outlets. As a part of this exercise, many shops were revamped and some even had to be shut down. Archies
believed that being in direct contact with the customer will help assess the detailed requirements of various
product lines, and have better inventory management and product mix systems. In addition, the company
was also planning to increase the number of Vision 2000 stores on a large scale. The Vision 2000 stores
were much bigger than any other Archies retail outlets and according to company sources, brought in 40%
more revenues as well.

THE FUTURE - SHIFTING FOCUS

The Moolchandanis believed that the distribution and retail revamp exercises will yield positive results
after the transition phase. Archies decided to focus more on the gifts segment, as it believed the segment
was under-exploited. The company planned to develop and introduce new lines in the gift segment
including higher end items, which were lacking in the present setup. The idea was to make an Archies
gallery a 'one stop gift shop' for people from all walks of life. The company had already begun importing
high-end gift articles such as crystal, soft toys and Feng Shui items from China, Hong Kong and Korea in
addition to outsourcing from local vendors...

EXHIBITS

Exhibit I: Archies - Shareholding Pattern

Exhibit II: A Note on the Indian Social Expression Industry
Exhibit III: Archies - Over The Years

COMPARISON

STOCK REACH -ARCHIES

Scrip Name :
ARCHIES
Group : T
LTD
Scrip Code : 532212 Scrip Id : ARCHIES Face Value : 10

LTP / Prev.Close Change - Net / % Wtd Avg Price 52 Week - High / Low
124.55 ( 03 Sep' 09) / 33.20 ( 16
81.05 / 78.10 2.95 / 3.78 80.09
Mar' 09)
Open / High / Low LTQ / TTQ 2 Wk Avg Qty Week Ago - Close / Net Change / %
80.00 / 82.00 / 78.30 100 / 3311 4222 76.80 / 4.25 / 5.53 ( 30 Oct' 09)
Bid Qty / Rate Ask Rate / Qty Circuit Limits Month Ago - Close / Net Change / %
100 / 81.05 82.00 / 60 82.00 / 74.20 96.85 / -15.80 / -16.31 ( 07 Oct' 09)

Ex -
VaR+ELM % / Delivery % Industry Index No Deliv. Period
Date
100.00 / 100.00 Gift Articles Toys & Cards -- -- / -- 16
Sep' 09
STOCK REACH –ZEETV

SCRIP NAME :
ZEE ENTER GROUP : A
SCRIP CODE : 505537 SCRIP ID : ZEEENTER FACE VALUE : 1
 LTP / Prev.Close Change - Net / % Wtd Avg Price 52 Week - High / Low
261.40 ( 14 Oct' 09) / 88.10 ( 12
242.15 / 239.60 2.55 / 1.06 245.21
Mar' 09)

Open / High / Low LTQ / TTQ 2 Wk Avg Qty Week Ago - Close / Net Change / %

244.00 / 250.95 / 239.7 7 / 394156 498785 231.65 / 10.50 / 4.53 ( 30 Oct' 09)
0
Bid Qty / Rate Ask Rate / Qty Circuit Limits Month Ago - Close / Net Change / %
4429 / 242.15 0.00 / 0 NA 243.20 / -1.05 / -0.43 ( 07 Oct' 09)
Ex -
VaR+ELM % / Delivery % Industry Index No Deliv. Period
Date
16.24 / 22.86 Broadcasting & Cable TV BSE100 -- / -- 06
TECK Aug' 09