creative world telefilms ltd Management discussions

Management Discussion and Analysis Report

Your Directors are pleased to present the Management Discussion and Analysis Report for the year ended 31^st March, 2013.

The management discussion and analysis have been included in consonance with the code of corporate governance as approved by The Securities and Exchange Board of India (SEBI). Investors are cautioned that these discussions contain certain forward looking statements that involve risk and uncertainties including those risks which are inherent in the Company’s growth and strategy. The company undertakes no obligation to publicly update or revise any of the opinions or forward looking statements expressed in this report consequent to new information or developments, events or otherwise.

The management of the company is presenting herein the overview, opportunities and threats, initiatives by the company and overall strategy of the company and its outlook for the future. This outlook is based on management’s own assessment and it may vary due to future economic and other future developments in the country.

OVERVIEW

The company deals in trading of major items like account software products and Developer. The operations of the company are centered on Advisory, Finance & Investments and media activities.

INDUSTRY STRUCTURE AND DEVELOPMENT

The company deals in sale of software, which are procured from outside agencies which are used by consumers. The Indian Media industry is a subject of national pride, international interest and media hype. There has been tremendous growth in the media industry of late which can be attributable primarily by an increase in television viewership and improved realizations from television subscriptions and film exhibition. Due to some inherent problems the company presently not in comfort with actual media business and the management of the company has already taken some initiation for solving such problems.

There has been tremendous finance growth due to foreign collaboration, foreign equity participation etc. Under Finance Division, trading in equity shares and stock is the main activity of the company as well as other financing activities.

Coming to the Finance industry where the company is also involved, major developments have taken place for the past few decades in view of the fact that plethora of finance companies have come into existence with various finance products

OPPORTUNITIES AND THREATS:

1. There is a scope to become part of a larger group of satellite television channels due to diversification in media division.

2. Several model of revenue can be improvised by expanding the business activities of the company.

3. One of the main businesses being in the Finance related areas the company is exposed to credit risks which are inherent to this type of business.

4. The company since involved in trading in software business for a very long time there are good prospects for expanding the further activities in this direction.

5. The company is also facing severe competition from other financial companies and software companies.

INITIATIVES BY THE COMPANY

The company has taken following initiatives:

1. The efforts are on to reduce the transportation cost on purchasing activities.

2. Every effort is being made to locate new client base to boost Software Sales.

3. The company is endeavoring to penetrate into newer Financial Activities.

OUTLOOK

* The Company is mainly engaged in Finance and related business and software business. The Company is planning to expand and diversify the activities in this line and E-Cinema to tap higher revenues.

* Further, the Company is also contemplating to usher in new areas of development in financial activities. The Board of Directors of the company envisaging to augment the investment base of the company through participation in various equity debt, bond market and mutual funds with a view to earn good returns to the company.

RISKS AND CONCERNS

* Due to stiff competitions in the software/finance fields where the companies activities are centered on, the overall margins are under pressure.

* Due to recent slowdown it is apprehended that there will be a big correction in all the products in which company is dealing.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The company has a strong Management audit framework. The Audit committee of Promoters directors & Independent Directors. The Audit committee meets every quarter to review compliances which are as under :

* Compliance of the company with applicable statutes, policies procedures, listing requirements and management guidelines.

* All transactions are being accurately recorded and verified.

* Adherence to applicable accounting standards and policies.

HUMAN RESOURCES/INDUSTRY RELATIONS

* The company provides excellent working environment so that the individual staff can reach his/her full potential.

* The company is poised to take on the challenges and March towards accomplishing its mission with success.

CAUTIONARY STATEMENT

Statement in the Management Discussion and analysis describing the Company’s 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. Several factors could make significant difference to the company’s operation. These include climatic conditions and economic conditions affecting demand and supply, government regulations and taxation, natural calamities etc. over which the company does not have any control.

For and on behalf of the board

Sd/-

Director

Place : Mumbai

Date : 3^rd September, 2013.