Filmcity Media Ltd Management Discussions

COMPANY BACKGROUND

Filmcity Media Limited was incorporated in 1994 as Kavita Prakashan Private Limited. The company started its journey with publishing its own magazine Filmcity which became the number 1 weekly magazine on Hindi Films at that time. The company later diversified into electronic media by setting up a video studio with complete shooting and post production equipment. Over time the company established recognition and relations within the media industry and went on to produce many programmes for Doordarshan National and its local channels, we were also privileged to count Zee TV, Star Plus amongst some private network as our client base. With the gradual decline in the print media sector, and fierce competition in production media faced by the Company from its competitors, the TV programmes produced by the Company could not be telecasted and due to these reasons, the Company faced difficulty to survive in the market.

THE WAY AHEAD

The financial year ended March 31, 2026 was a particularly difficult year for the company, as the company conducted no business operations during the year. This was mainly due to a lack of capital resources the company has faced since its securities trading suspension was revoked by the exchange. While the company has fulfilled all its statutory and other dues, and is complying with all applicable compliances, with the financial resources provided by the promoter entity, however, reviving business operations has been difficult due to the aforementioned reason and the completely changed business environment in the media sector. While the media and content generation has boomed in the last few years, availability of platforms and the economics of the industry has altered the ability of traditional media business to generate revenue from its content with a certain level of surety. In view of this, the company took steps towards building its own capital resources and entering into new business venture after comprehensive considerations of the scenario. The company initiated raising new capital through preferential allotment of equity shares to promoter and non-promoter category with the objective of developing its investment and wealth advisory and consultancy business. To take this initiative into effect, the company followed a rigorous regulatory process. The company chose the enter into the wealth advisory after careful consideration of the synergies with the promoter group, which is a Non-Banking Financial Company (NBFC) having business operations in the same segment, and growing need for advisory services in India. The company is positive that this new direction will lead the company to grow its shareholders value over the coming year, however, this is only the first step in the long way ahead.

HUMAN RESOURCES

Your Company recognises the need of talent and nurturing quality staff as a key to success. We will continue to focus on training and motivation of manpower so as to develop teams of qualified and skilled personnel to effectively discharge their responsibilities in a number of projects and activities. It is, in this context, which we have been working towards promoting the skills and professionalism of our employees to cope with and focus on the challenges of change and growth which is important to the segment your Company operates in.

INTERNAL CONTROLS & THEIR ADEQUACY

The company believes in formulating adequate and effective internal control systems and implementing the same to ensure that the interests of the company are safeguarded and reliability of accounting data and its accuracy are ensured with proper checks and balances. The senior management team meets to address issues like operational efficiency, protection and conservation of resources, accuracy and promptness in financial reporting and compliance with laws and regulation, at regular frequency to discuss various issues that influence the business and to take strategic decisions. The company has an internal audit system, which submits report to the Chairman of Audit Committee periodically.

THREATS RISKS & CONCERNS

The management of risk does not imply risk elimination but prudent risk management. We can withstand the competition despite an increasing number of new players. Due to industry specific high attrition of key professionals the quality of the productions and their consistency could suffer. There is a risk of sourcing software at reasonable acquisition costs and the rapid changing market can be a threat. Your companys management is proactive to recognise risks & threats and make use of opportunity. Piracy is a major hurdle in our segment. Physical format is diminishing to an extent largely due to this. Besides regulatory frame work, subsidies, taxes and related policy can affect our industry.

SIGNIFICANT CHANGES IN KEY RATIOS

Since, there was no business activity in the Company during the year under review therefore the details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefor, could not be provided.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis and the annual report describing the Companys objectives, projections, estimates, expectations may be "forward-looking statements" within the meaning of applicable securities laws and regulations in India and other countries. Actual results could defer materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting the domestic market, in which the Company operates, changes in the Government regulations, tax laws and other statutes and other incidental factors and unforeseen circumstances.