BMB Music & Magnetics Ltd Management Discussions

Annexure- B

FORWARD LOOKING STATEMENTS

This report contains forward-looking statements based on certain assumptions and expectations of future events. The Company, therefore, cannot guarantee that these assumptions and expectations are accurate or will be realized. The Companys actual results, performance or achievements can thus differ materially from those projected in any such forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Global economy remained largely subdued in FY 2024-25 due to widespread uncertainties and COVTD- 19 inpact. A real sense of the impact of the opportunities provided by the growth in multiplex and digital distribution can be gained by looking at box office numbers and screens.

2008 witnessed the fust film ever in India to cross 1 billion. In 2012 nine films achieved this milestone. Similarly, in 2008 a large film may have been released across around 1,000 screens, whereas the current figure is close to 3,500 screens. Looking ahead, continued growth is expected in multiplex screens. For example, the newly combined PVR and Cinemax chains are expected to increase the number of screens by 25% (90 screens) in FY 2014. With the expansion of Cineoles in India and the growth in other chains such as Inox Movies and Reliance Big Cinema, growth has become an industry-wide phenomenon. This growth in the number of screens is also being accompanied by rising average ticket prices across cinemas, as the mix of multiplex and single screens cinemas changes, with a skew" towards multiplexes. In FY 2013, for example, PVR Limited reported a 10% increase in average ticket prices. Growth in cinema is not restricted to Hindi films. Tamil, Telegu, Bengali and Punjabi cinema continue to grow as the availability of screens increases, with films from the regions joining the 1 billion box offices. Hindi Film Industry has become risky because of higher rates of the artists & technicians as w^ell as the publicity taking before release become very costly. Any Hindi film publicity budget should be minimum 4-5 crores and in other way, regional film publicity budget is very restricted.

BUSINESS OVERVIEW

The Company have produced one Movie, “The Signature during the Financial Year under consideration.

MARKETING

The Company is setting up a good marketing team to enter to increased turnover.

SWOT ANALYSIS

Strengths

Media and Entertainment is one of the most booming sectors in India due to its vast customs reach. The various segments of the Media and Entertainment industry like television and film industry have a large customer base.

• The growing middle class with higher disposable income has become the strength of the Media and Entertainment Industry

• Change in the lifestyle and spending patterns of the Indian masses on entertainment

• Technological innovations like online distribution channels, web-stores, multi- and mega plexus are complementing the ongoing revolution and the growth of the sector

• Indian film industry is second largest in the world and the largest in terms of the film produced and tickets sold.

• The low cost of production and high revenues ensure a good return on investment for Indian Media and Entertainment industry.

Weaknesses

• The Media & Entertainment sector in India is highly fragmented

• Lack of cohesive production & distribution infrastructure, especially in the case of music industry

• The lack of efforts for media penetration in Iowa- socio-economic classes, where the media penetration is low

Opportunities

• The concept of crossover movies has helped open up new doors to the crossover audience and offas immense potential for development

• The increasing interest of the global investors in the sector

• The media penetration is poor among the poorer sections of the society, offering opportunities for expansion in the area

• Rapid de-regulation in the Industry

• Rise in the viewaship and the advertising expenditure

• Technological innovations like animations, multiplexes etc. and new distribution channels like mobiles and internet have opened up the doors of new opportunities in the sector

Threats

• Piracy, violation of intellectual propaty rights poses a major threat to the Media & Entatainment Companies

• Lack of quality content has emerged as a major concern because of the ‘quick-buck route being followed ill tire industry

• With technological innovations taking place so rapidly, the media sector is facing considaable uncertainty about success in the marketplace.

• INTERNAL CONTROL

The company has customized accounting packages and also has well established system in place at various levels to check and contr ol expenses.

• FUTURE OUTLOOK

The future outlook of the Company is very prospective.

• MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED: NIL

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The financials of the company has been prepared by ensuring the obj ectivity, credibility and correctness through proper financial reporting and disclosure processes, internal control, risk management policies and processes, tax policies, compliance and legal requirements and associated matters.

RISKS AND CONCERNS Change in consumer preference risk:

The content developed by the Company need not appeal the target audience always as the target audience preferences are bound to change. The level of creativity required for the audience targeted varies with the available options to the consumers.

Artist attrition risk:

The reason for which the Companys content is preferred by the audience includes artist attrition also. These artists are an important part for the content produced by the Company.

Technological risk:

Advancement of technology for creation of the picture is necessary with the new Technologies being adopted by tlie competitors

Regulatory risk:

The business may have a positive or a negative impact on the revenues in future due to changes in the regulatory framework and the tax laws as compared to the current scenario. Management continuously monitors and makes efforts to arrest decline and adverse output on any of these factors.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities, laws and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include domestic and global; supplies and demand conditions affecting prices of final product and service, input availability and prices, changes in government regulations, tax laws, economic developments within the country and other factors such as litigation and industrial relations.

The outbreak of COVTD-19 has affected all businesses across economies. Our ability to successfully create content depends upon the availability, diversity and appeal of filmed content as well as the environment in which the content is being produced. The outbreak poses a risk to our ability to produce content. However, to minimize the impact, we have resumed our operations in adherence to all the standard operating procedur es and social distancing norms prescribed by the local authorities. Although, the oper ations still remain unhedged.

Date: 22.08.2025	By Order of the Board of Directors
Place: Jaipur
	Kastoor C hand Bokadia
	DIN: 01828803
	Chairman cum Managing Director