moving picture company i ltd Management discussions

With 180 million television households in 2016, India stood as the third largest television market with US$ 1157 billion revenue in 2016. It also has one of the largest broadcasting industries in the world with approximately 800 satellite television channels, 245 FM channels and more than 100 operational community radio networks. The total subscriber base for the Indian television industry is expected to increase to 173 million by 2016 from 95 million in 2009.

The market size of the Indian entertainment industry is anticipated to grow at a compound annual growth rate (CAGR) of 14.2 per cent during 2013-18 and reach US$ 29 billion. The entertainment industry is dominated by the television segment with 45 per cent of the market share, which is expected to reach 50 per cent by 2018.

The Government of India has supported this sector’s growth by taking various initiatives such as digitising the cable distribution sector to attract greater institutional funding, increasing foreign direct investment (FDI) limit from 74 per cent to 100 per cent in cable and DTH satellite platforms, and granting industry status to the film industry for easy access to institutional finance.

OUTLOOK

The MPC has identified media and entertainment as one of the thrust area, in the industry MPC is known for its quality programming. Its experience in doing daily programmes has meant that Doordarshan as well as satellite channels like ZOOM, SET MAX, SONY, SAHARA, STAR GOLD and MTV have commissioned major projects to MPC.

RISK AND CONCERNS

Business is exposed to external and internal risks. Some risks can be predicted and minimized with careful planning and implementing the measures to mitigate them, while some risks cannot be insured against. Your Company recognizes that these risks need to be managed to protect customers, employees, shareholders and other stakeholders to achieve our business objectives. The possibility of occurrence of the risk event and the magnitude of their consequences on the organization is determined and used to prioritize risk management.

HUMAN RESOURCES

The company is taking various initiatives to increase productivity of its employees and emphasizes on the highest levels of professional ethics, personal decorum, and adherence to deadlines and compliance to standards. To save on costs, the company is appointing non-experienced staff and taking initiatives for internal training and development of skills. This will help in enhancing their emotional and intellectual engagement with the company. It also promotes team building and encourages new ideas and innovations.

INTERNAL CONTROL SYSTEM AND ADEQUACIES

Your company has an adequate Internal Control System and the Board of Directors of the company appointed M/s Nayak Saluja & Associates, Chartered Accountants as an Internal Auditors of the Company for the financial year 2015-2016. The Internal Auditors independently evaluate adequacy of internal controls and audit the transactions undertaken by the Company. The Audit Committee of the Board of Directors which comprises of majority of Independent Directors, inter alia, reviews the adequacy and effectiveness of internal Control and monitors implementation of Internal Audit observations.

FORWARD LOOKING STATEMENT

Statements in this report on Management Discussion and Analysis, describing the company’s objectives, projections, expectations or predictions may be forward looking, considering the applicable laws and regulations. These statements are based on certain assumptions and expectation of future events. Actual results could, however, differ materially from those expressed or implied. Domestic consumption, price trends, change in government regulations and tax structure can make a difference in company’s performance in future.

The company assumes no responsibility in respect of the forward looking statements herein, which may undergo changes in future on the basis of subsequent developments, information or events.