YOUR DIRECTORS ARE PLEASED TO PRESENT THE MANAGEMENT DISCUSSION AND
ANALYSIS REPORT FOR THE YEAR ENDED 31ST MARCH, 2023.
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 Companys 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 managements own assessment
and it may vary due to future economic and other future developments in the country.
The operational performance and future outlook of the business has been
reviewed by the management based on current resources and future development of the
Company.
INTRODUCTION:
The Media & Entertainment industry has immense power to influence,
shape, and transform society. The industry is witnessing a massive transformation in the
current scenario. It was a rollercoaster ride in the past few years for the whole industry
when it came up with a few struggles, difficulties in producing content, the closure of
cinema halls and a cut back in spending on advertisements during the pandemic. However,
this situation was followed by a cycle of a strong revival. The agility and inclination to
face and overcome challenges are being proved by this industry through the ways it has
revived its charm and performed better than pre-pandemic. The core of this industry is to
keep pace with the changing environment to produce quality and relatable content. The
disruptive innovations which are at their peak are changing consumer behaviour, and
technology leading to a risk for the irrelevancy of the media and entertainment industry.
The popularity of YouTube videos, podcasts, Over-the-Top (OTT) media services, and digital
broadcasting has given rise to a variety of occupations in the sector, including
journalism, advertising, digital marketing, and public relations.
INDUSTRY OVERVIEW:
India is the second-largest online news-consuming nation, the
worlds second-largest market in terms of app downloads and the worlds largest
fantasy sports market with a user base of 130 million. India also secures fourth rank in
Information and Communication Technology (ICT) services export. The growth in television
households will continue to grow at over 5% till 2025, which is driven by connected TVs.
It is estimated to cross 40 million by 2025 and DD-free dishes could cross 50 million in
the same year.
The subscriber base of the Indian telecommunications market is 1.18
billion which results in India being the worlds second largest in the segment. The
mobile economy is booming at a good pace and constitutes around 98% of all telephone
subscriptions.
Ministry of Electronics and Information Technology (MeitY) aims to have
a tectonic shift in digital strategy to harness the opportunity to create an economic
value addition of US$ 800 billion by the year 2024 and US$ 1 trillion by the year 2025
through the right digital interventions.
The industry growth is being supported by various government
initiatives such as digitizing the cable distribution sector to attract greater
institutional funding, increasing the FDI limit from 74% to 100% in cable and
direct-to-home (DTH) satellite platforms, and granting industry status to the film
industry for easy access to institutional finance. The Ministry of Information and
Broadcasting set up Film Facilitation Office (FFO) which acts as a single window clearance
and facilitation point for producers and production companies with a view to assist them
in getting requisite filming permissions. In 2020, the government of India also announced
the plan to support and develop a centre specifically for Animation, Visual-effects,
Gaming, and Comic (AVGC).
OPPORTUNITIES:
India is the worlds second-largest telecommunications market with
a subscriber base of 1.17 billion as of August 2022. In a country with 300 million
households, there are around one-third of households who are still without television set
and this data depicts that theres an opportunity for growth and development in the
sector. The broadcasting industry can work as a powerful source which can educate,
inspire, and empower viewers with strong opinions and views. Therefore, it is important
that the government and industry work together to give every Indian home access to
television. Globally, the Animation, Visual-effects, Gaming and Comics (AVGC) sector is an
industry of US$ 800 billion. However, India has a huge talent force supporting this
industry while it accounts for less than one percent share in the industry. The AVGC
sector has the potential to boom and become the next IT sector of India and the target
could be around 5% in a year, which will be close to a US$ 40 billion opportunities. The
same growth has the potential to create around 1,60,000 jobs across the nation. The gaming
industry is booming as a high-growth segment along with the contribution of skill-based
gaming. Under this segment, India has least percentage share if compared globally,
however, India has a substantial growth opportunity with the availability of skills and
policies supporting it. Film making industry in India is being supported by nature itself,
the opportunity expands with the beautiful and diverse locations and landscapes, good
infrastructure, and high-quality manpower; India has all the ingredients required to
unlock and expand this opportunity and become a preferred destination for international
film shoots. The opportunities are not only in India, but there is also an option to take
Indian content to global audiences. South India has set a great example of the same across
the globe as it has demonstrated that good content travels beyond boundaries and language
barriers. India has a strong set of ecosystems of talent, production efficiencies and
creative capabilities, and it generates huge opportunities to mark our strength and
culture on the global stage. The industry can come together, explore, and create content
that can break all global boundaries and become a storyteller to the world. The growth and
stories of regional movies are better than other cumulative work. However, the industry
has an opportunity to create masterpieces that can cross geographical boundaries and
establish relatability around the globe. Moving towards print media, music, and radio,
these subsectors continue to be important contributors to the industry. There are various
changes in this industry with ongoing development and improvements.
THE WAY FORWARD:
The media and entertainment industry has seen robust growth with
continuous improvement and various approaches as well. For the past two years, the
industry has shown immense resilience and there has been a bounce back to the pre-Covid
scenarios. The pandemic undoubtedly created a disruption in the consumption habits of
consumers. However, with the advent of ongoing digitalization and new technologies, the
media and film industry is expected to show significant growth over the next few years.
The strong growth in OTT, gaming, animation and VFX is cumulatively estimated to
contribute to around US$ 55-70 billion by 2030. The industry continuously showcases
multimodal growth with digital video leading to a consumption boom, however the potential
growth depends on the realization of supply and demand side factors. The integration of
content and advertisement is growing more prevalent as digital advertising moves toward
more "interactive" commercials. Platforms for short-form video are expanding and
offer advertisers a special value proposition. With a more than ten-fold increase in
gaming companies over the past ten years, India is also growing as a talent hotspot. Over
the past few years, this has caused a boom in VC funding for the industry. After a
challenging 2020, the film industry has demonstrated optimistic indications of resurgence.
Future growth prospects include the expansion of content films, direct-to-digital
releases, and regional box office growth. The development of the industrys
infrastructure, intellectual capital, and financial incentives depends on the
post-production, VFX, and animation sectors in India.
RISKS AND CONCERNS:
Since the very beginning of the entertainment industry, producers,
actors, and venue owners have had to balance risk against successful completion of
projects. A bit of risk-taking has always been a part of the industry, especially as
eventgoers have demanded bigger and more engaging performances. Some of the common and
expected risks in this industry include: Reputation: In any production, the reputation the
public image of performers and of the production team is as important as the
performers talents. A star known for risky or unflattering behaviour may lead to
negative press, not to mention outright boycotts of a production, which can result in
less-than-desirable sales figures. Production companies have been in the crosshairs as
well; claims of harassment and civil rights violations have plagued the industry for
decades. Occupational Hazards: With so many parts of a given production, it stands to
reason that there are certain physical risks associated with shooting a movie or putting
together a live performance. Third-Party Liabilities: Large projects often require the
services of a third-party provider, such as a performance venue, a security company, a
special effects firm, or even a construction team tasked with building sets.
OPERATIONAL REVIEW:
Media covers a wide variety of streams advertising, broadcasting and
networking, news, print and publication, digital, recording, and motion pictures and each
has its own associated infrastructure. Media companies operate within these streams and
offer products and services to end users from individuals to large organizations.
With theatre releases postponed, shooting on hold, and cinema halls
closed, absolutely nothing is certain. Even when theatres open, social distancing norms
and weakened livelihoods are likely to prevent people from thronging to watch movies. With
large-budgeted films competing for release dates, smaller productions may lose out.
Production houses, keen on anticipated revenues, will have to put future projects on hold.
The media and entertainment industries are in the midst of sweeping
digital transformations as advances in technology and infrastructure continue to reshape
how, where and when content and information are consumed
HUMAN RESOURCES:
Human resources development, in all its aspect like training in safety
and social values is under constant focus of the management. Relations between management
and the employees at all levels remained healthy and cordial throughout the year. The
management and employees are dedicated to achieve the corporate objective and the targets
set before the Company.
PERFORMANCE OF THE BOARD AND COMMITTEES:
During the year under review, the performance of the Board &
Committees and Individual Director(s) based on the below parameters was satisfactory: (a)
Most of the Directors attended the Board meeting; (b) The remunerations paid to executive
Directors are strictly as per the company and industry policy. (c) The Independent
Directors only received sitting fees. (d) The Independent Directors contributed a lot in
the Board and Committee deliberation and business and operation of the company and
subsidiaries based on their experience and knowledge and Independent views. (e) The Credit
Policy, Loan Policy and compliances were reviewed periodically; (f) Risk Management Policy
was implemented at all critical levels and monitored by the Internal Audit team who places
report with the Board and Audit committee.
Internal Control Systems and their Adequacy
The Company has suitable and adequate system of Internal Controls
commensuration its size and nature of operations primarily to ensure that - the assets are
safeguarded against loss from unauthorized use or disposition; - the transactions are
authorized, recorded and reported correctly and - Code of conduct, Policies and applicable
statutes are duly complied with. As a measure of Internal Control System, which has been
evolved over the years, the Company has established a methodical system of Annual
Budgeting and Management Information System (MIS). In addition, Administrative and HR
activities of the Company are also brought within this purview.
Cautionary Note
Certain statements in "Management Discussions and Analysis"
section may be forward looking and are stated as required by law and regulations. Many
factors, both external and internal, may affect the actual results which could be
different from what the Directors envisage in terms of performance and outlook.
For and on behalf of the Board |
Panorama Studios International Limited |
Sd/- |
Sd/- |
Kumar Mangat Pathak |
Abhishek Pathak |
Managing Director |
Director |
DIN:00299630 |
DIN 00700868 |
+91-9892691696
