asian films production & distribution ltd share price Management discussions

Management discussion and analysis report

Industrial Structure and Developments:

The Entertainment and Media Industry is a cyclically industry and grows faster when the economy is expanding. During the past few years, the Indian Entertainment and Media Industry has out-performed the Indian economy and is one of the fastest growing sectors in India such phenomenal growth in the entertainment and media sector can be attributed to economic growth, raising income levels, rise in consumer spending, technological advancements and policy initiative taken by the Indian government. The industry has witnessed marked improvements in all spheres via from the technology used in making films, to themes of movies, exhibition, finance, and marketing and even in business environment. It is increasingly getting more corporatized.

The greatest change in Indian market is vast improvement in the exhibition sector. The increase in Multiplex culture and viewership continues to drive the growth of Indian Film Industry. Consumers are getting more aware & specific of their requirements. The industry is also changing to deal with new technologies and new demands from consumers. The rise of smaller auditoria is changing the entire complexion of Indian films-the budgets they are made with, the way they are made and the king of audiences they are made for.

In addition to exploiting avenues in the home country, the Entertainment Companies and the production houses are now exploiting the un-explored overseas market for its Products (Films) which certainly is a promising avenue.

The management had a detailed discussion on the operational results for the year ended 30th September, 2013 and analysed the factors that affected sales and profit. The management was satisfied with the efforts taken in the situation faced by the company and the adverse market conditions during the year.

Opportunities and Threats:

Opportunities:

The business of films may not be termed as lucrative but is of prime importance to the film industry and film industry is very poised to have a further tremendous growth as mentioned elsewhere in this report to the tune of around 25-35%. The Film Stars are looked upon as an idol and despite of the fact that the trend changes, but the likings towards the films, films personalities, and related business continues.

Threats:

Piracy continues to dampen the growth of the industry as a whole. The Company is taking steps to do the distribution of movies in major circuits to ensure to get back its share which may be lost due to piracy and un-booked income by other distributors. High Entertainment tax affects revenue to some extent. Film distribution is relatively risky business due to issue of under-reporting by exhibitors.

Outlook:

The key would be to manage growth as we continue to scale up the business, while maintaining current levels of capital expenditure and by increasing cash generation further, we have nurtured and shared mutually fruitful long-term relationships with talent as well as business associates in our 15-years journey so far and we hope to build on them while forging new relationships in the years to come. We will seek to widen our presence into regional languages as well as continue to acquire interesting catalogues to add to our library.

Human Resource Development:

The Companys progress is largely attributed to the wholehearted support from its manpower. The technical team were constantly challenged for quality performance and expected to work with an entrepreneurial spirit on the project.

Cautionary Statement:

Statement in this Management Discussion and Analysis Report, describing the Companys Objectives, projections, estimates, expectation may be forward looking statement with the meaning of applicable laws and regulations, Actual results could differ materially from those expressed or implied.

For and on behalf of the Board

Sd/-

Director

Place: Ahmedabad

Date: 02/12/2013.