Midvalley Entertainment Ltd Management Discussions.

Management Discussion And Analysis

Industry Structure and Developments

The Entertainment Industry is one of the fastest growing sectors in the Country at an 18% compound annual growth over the past decade. The Media and entertainment industry offers secular growth from revenue opportunities in several areas such as advertising, subscription, TV Content providers, movie and music. Spending on entertainment is one of the largest components of discretionary household expenditure in most developed markets.

The Entertainment industry has always been successful in drawing masses from the days of Roman Gladiators to present day movies. Given the inevitable convergence between entertainment and telecommunication the potential of the industry is unlimited. From the capital market to the corridors of power is a buzz about entertainment. Entertainment has perhaps come to be regarded as the fourth basic need of mankind after food, clothing and shelter.

The industry is projected to grow at a Compounded Annual Growth Rate (CAGR) at 14 percent to reach INR 1275 billion by 2015 as tabulated below says the FICCI – KPMG report

Overall Industry Size (INR Bn) 2007 2008 2009 2010 CAGR (2007- 10) 2011P 2012P 2013P 2014P 2015P CAGR 201- 15
Television 211 241 257 297 12% 341 399 455 533 630 16%
Print 160 172 175 193 6% 211 231 254 280 310 10%
Film 93 104 89 83 -3% 91 98 109 120 132 10%
Radio 7 8 8 10 11% 12 15 18 21 25 20%
Music 7 7 8 9 5% 9 11 13 16 19 17%
Out of Home 14 16 14 17 6% 19 22 24 27 30 12%
Animation & VFX 14 17 20 24 18% 28 33 40 47 56 19%
Gaming 4 7 8 10 32% 13 17 23 31 38 31%
Digital Advertising 4 6 8 10 39% 13 18 22 28 36 28%


The company has tied up with Indian agent for acquiring content and screening rights for films at Domestic & International levels

a) Exhibition - Theatres

Previously we are operating Theatres in South Indian Region (Tamilnadu, Andhra & Karnataka). But we felt after sometime that the leasing of theatres is not a profitable venture, as average occupancy rate is only 15% and maintenance cost will be more

We strived our best and with the experience, we are trying to seek other alternatives and we are working out future business plans

We are doing our best to achieve the targets

b) Distribution

In the distribution sector we are trying to look out for the best content for Distribution at our theatres. We have accumulated to our library a good numbers of content which will be useful and handy for us when there is shortage in the local market


The Company has necessary infrastructure to carry out any operations under "Media & Entertainment "


Your company’s turnover & other income during the year was Rs. 0.24 lakh as against Rs.0.038 lakh in the previous year. The Company made a loss of Rs…-613.31 as against Rs. -590.73 in the previous year.

Financial at a Glance

Paid up capital of the company is Rs.3422.46 lakhs and the reserves & surplus amount to Rs.4620.56 lakhs

Loss before taxation for the year amounted to Rs. -692.55 compared to Rs.-713.72 last year. Loss after taxation for the year was Rs. -613.31 compared to Rs. -590.73 last year



1-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.

2-The growing middle class with higher disposable income has become the strength of the Media and Entertainment Industry

3-Change in the lifestyle and spending patterns of the Indian masses on entertainment

4-Technological innovations like online distribution channels, web-stores, multi- and mega plexes are complementing the ongoing revolution and the growth of the sector

5-Indian film industry is second largest in the world and the largest in terms of the film produced and tickets sold.

6-The low cost of production and high revenues ensure a good return on investment for Indian Media and Entertainment industry.


1- The Media & Entertainment sector in India is highly fragmented

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

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


1-The concept of crossover movies has helped open up new doors to the crossover audience and offers immense potential for development

2- The increasing interest of the global investors in the sector

3- The media penetration is poor among the poorer sections of the society, offering opportunities for expansion in the area

4-The nascent stage of the new distribution channels offers an opportunity for development 5- Rapid de-regulation in the Industry 6- Rise in the viewership and the advertising expenditure

7- 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


1-Piracy, violation of intellectual property rights poses a major treat to the Media & Entertainment Companies

2-Lack of quality content has emerged as a major concern because of the ‘quick-buck’ route being followed in the industry

3-With technological innovations taking place so rapidly, the media sector is facing considerable uncertainty about success in the marketplace.


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


Particulars 2013-14 2012-2013 2011-2012
Turnover 0.24 .038 585.83
Profit Before Interest, Finance Charges and Depreciation (61.57) (56.63) (1873.26)
and after unrecoverable bad debts
Interest and Finance charges 0.08 .11 .25
Profit before Depreciation (61-65) (56.74) (1873.51)
Depreciation 630.90 656.98 579.34
Profit /(Loss) before tax (692.55) (713.72) (2452.85)
Provision for income tax 0.00 0.00 0.00
Deferred Tax (79.24) (122.99) 260.52
Profit / (Loss) after tax (613.31) (590.73) (2192.34)
Extraordinary Items 0.00 0.00 0.00
Provision for unrecoverable and doubtful debts 0.00 0.00 0.00
Net Profit/ (Loss) (613.31) (590.73) (2192.34)