BMB Music & Magnetics Ltd Management Discussions

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements based on certain assumptions and expectations of future events. The Company, therefore, cannot guarantee that these assumptions and expectations are accurate or will be realized. The Companys actual results, performance or achievements can thus differ materially from those projected in any such forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events.

INDUSTRY STRUCTURE AND DEVELOPMENTS

During the Financial Year 2025 26, the Indian media and entertainment industry continued its recovery and growth, supported by increasing consumer demand for quality content, expanding digital platforms, and the steady growth of multiplex infrastructure across the country. The film exhibition sector witnessed improved footfalls, while regional cinema continued to strengthen its presence with growing audience acceptance and wider theatrical releases.

The expansion of multiplex screens, coupled with advancements in digital distribution, has enhanced the reach of films across urban and semi-urban markets. At the same time, increasing ticket prices and improved viewing experiences have contributed positively to the industrys revenue potential.

The regional film industry, including Tamil, Telugu, Kannada, Malayalam, Bengali, and Punjabi cinema, continued to perform strongly, driven by high-quality content and pan-India releases. Digital streaming platforms have further expanded the audience base for regional and Hindi films alike.

Despite these positive developments, the film production industry continues to face challenges due to escalating production costs, higher remuneration of artists and technicians, increasing marketing and promotional expenses, and intense competition for audience attention. These factors have made prudent project selection, cost management, and efficient distribution strategies increasingly important for sustained profitability.

Overall, the long-term outlook for the Indian film and entertainment industry remains positive, supported by favourable demographics, increasing digital consumption, rising disposable incomes, and continued investments in content creation and exhibition infrastructure.

MARKETING

The Company is setting up a good marketing team to enter to increased turnover.

SWOT ANALYSIS

Strengths

? Media and Entertainment is one of the most booming sectors in India due to its vast customer reach. The various segments of the Media and Entertainment industry like television and film industry have a large customer base.

? The growing middle class with higher disposable income has become the strength of the Media and Entertainment Industry ? Change in the lifestyle and spending patterns of the Indian masses on entertainment ? Technological innovations like online distribution channels, web-stores, multi- and mega plexus are complementing the ongoing revolution and the growth of the sector ? Indian film industry is second largest in the world and the largest in terms of the film produced and tickets sold. ? The low cost of production and high revenues ensure a good return on investment for Indian Media and Entertainment industry.

Weaknesses

? The Media & Entertainment sector in India is highly fragmented

? Lack of cohesive production & distribution infrastructure, especially in the case of music industry

? The lack of efforts for media penetration in lower socio-economic classes, where the media penetration is low

Opportunities

? The concept of crossover movies has helped open up new doors to the crossover audience and offers immense potential for development ? The increasing interest of the global investors in the sector ? The media penetration is poor among the poorer sections of the society, offering opportunities for expansion in the area ? Rapid de-regulation in the Industry ? Rise in the viewership and the advertising expenditure ? Technological innovations like animations, multiplexes etc. and new distribution channels like mobiles and internet have opened up the doors of new opportunities in the sector

Threats

? Piracy, violation of intellectual property rights poses a major threat to the Media & Entertainment Companies

? Lack of quality content has emerged as a major concern because of the ‘quick-buck route being followed in the industry ? With technological innovations taking place so rapidly, the media sector is facing considerable uncertainty about success in the marketplace.

INTERNAL CONTROL

The company has customized accounting packages and also has well established system in place at various levels to check and control expenses.

FUTURE OUTLOOK

The future outlook of the Company is very prospective.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED: NIL

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The financials of the company has been prepared by ensuring the objectivity, credibility and correctness through proper financial reporting and disclosure processes, internal control, risk management policies and processes, tax policies, compliance and legal requirements and associated matters.

RISKS AND CONCERNS

Change in consumer preference risk:

The content developed by the Company need not appeal the target audience always as the target audience preferences are bound to change. The level of creativity required for the audience targeted varies with the available options to the consumers.

Artist attrition risk:

The reason for which the Companys content is preferred by the audience includes artist attrition also. These artists are an important part for the content produced by the Company.

Technological risk:

Advancement of technology for creation of the picture is necessary with the new Technologies being adopted by the competitors

Regulatory risk:

The business may have a positive or a negative impact on the revenues in future due to changes in the regulatory framework and the tax laws as compared to the current scenario. Management continuously monitors and makes efforts to arrest decline and adverse output on any of these factors.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Companys 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. Important factors that could influence the

Companys operations include domestic and global; supplies and demand conditions affecting prices of final product and service, input availability and prices, changes in government regulations, tax laws, economic developments within the country and other factors such as litigation and industrial relations. Our ability to successfully create content depends upon the availability, diversity and appeal of filmed content as well as the environment in which the content is being produced. The outbreak poses a risk to our ability to produce content. However, to minimize the impact, we have resumed our operations in adherence to all the standard operating procedures and social distancing norms prescribed by the local authorities. Although, the operations still remain unhedged. .

Pramod Bokadia

DIN: 01815878

Managing Director

Date: 24.07.2026

Place-Mumbai