Industry Structure and Developments
The Entertainment Industry is one of the fastest growing sectors in the Country at an18% compound annual growth over the past decade. The Media and entertainment industryoffers secular growth from revenue opportunities in several areas such as advertising,subscription, TV Content providers, movie and music. Spending on entertainment is one ofthe largest components of discretionary household expenditure in most developed markets.
The Entertainment industry has always been successful in drawing masses from the daysof Roman Gladiators to present day movies. Given the inevitable convergence betweenentertainment and telecommunication the potential of the industry is unlimited. From thecapital market to the corridors of power is a buzz about entertainment. Entertainment hasperhaps come to be regarded as the fourth basic need of mankind after food, clothing andshelter.
The industry is projected to grow at a Compounded Annual Growth Rate (CAGR) at 14percent to reach INR 1275 billion by 2015 as tabulated below says the FICCI KPMGreport
|Overall Industry Size (INR Bn)||2007||2008||2009||2010||CAGR (2007- 10)||2011P||2012P||2013P||2014P||2015P||CAGR 201- 15|
|Out of Home||14||16||14||17||6%||19||22||24||27||30||12%|
|Animation & VFX||14||17||20||24||18%||28||33||40||47||56||19%|
The company has tied up with Indian agent for acquiring content and screening rightsfor films at Domestic & International levels
a) Exhibition - Theatres
Previously we are operating Theatres in South Indian Region (Tamilnadu, Andhra &Karnataka). But we felt after sometime that the leasing of theatres is not a profitableventure, as average occupancy rate is only 15% and maintenance cost will be more
We strived our best and with the experience, we are trying to seek other alternativesand we are working out future business plans
We are doing our best to achieve the targets
In the distribution sector we are trying to look out for the best content forDistribution at our theatres. We have accumulated to our library a good numbers of contentwhich will be useful and handy for us when there is shortage in the local market
The Company has necessary infrastructure to carry out any operations under "Media& Entertainment "
Your companys turnover & other income during the year was Rs. 0.24 lakh asagainst Rs.0.038 lakh in the previous year. The Company made a loss of Rs -613.31 asagainst Rs. -590.73 in the previous year.
Financial at a Glance
Paid up capital of the company is Rs.3422.46 lakhs and the reserves & surplusamount to Rs.4620.56 lakhs
Loss before taxation for the year amounted to Rs. -692.55 compared to Rs.-713.72 lastyear. Loss after taxation for the year was Rs. -613.31 compared to Rs. -590.73 last year
ANALYSIS MEDIA & ENTERTAINMENT INDUSTRY
1-Media and Entertainment is one of the most booming sectors in India due to its vastcustomer reach. The various segments of the Media and Entertainment industry liketelevision and film industry have a large customer base.
2-The growing middle class with higher disposable income has become the strength of theMedia and Entertainment Industry
3-Change in the lifestyle and spending patterns of the Indian masses on entertainment
4-Technological innovations like online distribution channels, web-stores, multi- andmega plexes are complementing the ongoing revolution and the growth of the sector
5-Indian film industry is second largest in the world and the largest in terms of thefilm produced and tickets sold.
6-The low cost of production and high revenues ensure a good return on investment forIndian Media and Entertainment industry.
1- The Media & Entertainment sector in India is highly fragmented
2- Lack of cohesive production & distribution infrastructure, especially in thecase of music industry
3- The lack of efforts for media penetration in lower socio-economic classes, where themedia penetration is low
1-The concept of crossover movies has helped open up new doors to the crossoveraudience and offers immense potential for development
2- The increasing interest of the global investors in the sector
3- The media penetration is poor among the poorer sections of the society, offeringopportunities for expansion in the area
4-The nascent stage of the new distribution channels offers an opportunity fordevelopment 5- Rapid de-regulation in the Industry 6- Rise in the viewership and theadvertising expenditure
7- Technological innovations like animations, multiplexes etc and new distributionchannels like mobiles and internet have opened up the doors of new opportunities in thesector
1-Piracy, violation of intellectual property rights poses a major treat to the Media& Entertainment Companies
2-Lack of quality content has emerged as a major concern because of thequick-buck route being followed in the industry
3-With technological innovations taking place so rapidly, the media sector is facingconsiderable uncertainty about success in the marketplace.
INTERNAL CONTROLS AND THEIR ADEQUACY
The company has customized accounting packages and also has well established system inplace at various levels to check and control expenses
FINANCIAL PERFORMANCE OF LAST THREE YEARS AT A GLANCE
|Profit Before Interest, Finance Charges and Depreciation||(61.57)||(56.63)||(1873.26)|
|and after unrecoverable bad debts|
|Interest and Finance charges||0.08||.11||.25|
|Profit before Depreciation||(61-65)||(56.74)||(1873.51)|
|Profit /(Loss) before tax||(692.55)||(713.72)||(2452.85)|
|Provision for income tax||0.00||0.00||0.00|
|Profit / (Loss) after tax||(613.31)||(590.73)||(2192.34)|
|Provision for unrecoverable and doubtful debts||0.00||0.00||0.00|
|Net Profit/ (Loss)||(613.31)||(590.73)||(2192.34)|