nextgen animation mediaa ltd Directors report

The Members

Your Directors are pleased to present you the Sixth Annual Report with the Audited consolidated Financial Statements for the fiscal year from 1st July 2012 to 30th June 2013.

Financial Results			Rs. In millions
	Standalone		Consolidated
	2012-13	2011-12	2012-13	2011-12
Sales	3.99	29.33	180.74	264.16
Profits/(Loss) before Interest
Depreciation and Tax	(12.93)	(0.24)	(61.32)	20.06
Less: Interest	-	(2.60)	-	2.88
Less: Depreciation	(10.84)	(10.84)	(10.84)	10.84
Profit/(Loss) before Tax	(75.24)	(13.68)	(72.16)	6.34
Less: Provision for Tax (Net of prior period tax Adjustment)	-	-	-	1.00
Profit/(Loss) for the Year	(75.24)	(13.68)	(72.16)	5.34
Add:Brought forward balance of Profit & Loss Account	29.52	43.20	84.64	79.29
Balance carried to Balance Sheet	(45.72)	29.52	12.48	84.64

Dividend

Your Directors do not recommend any dividend.

Performance

During the year your Company has reported revenues at Rs. 3.99 million compared to Rs. 29.33 million during the previous year. The Company has incurred the net loss of Rs.75.24 million during the year against the net loss of Rs. 13.68 million earned during the previous year.

The review of the performance for the period ended June 30, 2013 and the business outlook of the Company is included in section on Management Discussion and Analysis included in Annexure "B" to this report.

Auditors Qualification

The auditors have qualified their audit report as a matter of emphasis regarding non provision for impairment in the value of Company’s Intellectual Property Right. The Note no.17 of Notes to Financial Statements for the year is self explanatory.

Fixed deposits

Your Company has not accepted any fixed deposits and, as such, no amount of principal or interest was outstanding as of the Balance Sheet date.

Directors:

Dr. Naran Raman retires by rotation at the ensuing Annual General Meeting and being eligible, offer himself for reappointment.

Directors’ Responsibility Statement

Pursuant to the requirement under section 217(2AA) of the Companies Act, 1956 with respect to Directors’ Responsibility Statement, it is hereby confirmed

i) that in the preparation of the annual accounts for the financial year ended 30.06.2013, the applicable accounting standards had been followed along with proper explanation relating to material departures;.

ii) that they had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period;

iii) that they had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv) that they had prepared the annual accounts on a going concern basis.

Auditors:

The auditors M/s. P.C.Surana &Co, Chartered Accountants, Mumbai who have been appointed as the statutory auditors of the Company at the Extra Ordinary General Body Meeting of the Company held on 12.08.2015 for the three financial years consecutively from 2011-12 to 2013-14 who retire at the ensuing Annual General Meeting and have confirmed their eligibility and willingness to accept office, if their appointment ratified.

Consolidated Accounts

We are enclosing the audited consolidated accounts for the period ended 30th June 2013.

The copy of Audited Financial Statement of WOS Ms. Advaitaa Technologies Inc. is available with the Secretarial Department.

Corporate Governance:

Pursuant to clause 49 of the Listing Agreement with Stock Exchanges, a report on Corporate Governance is given in Annexure "A".

Management Discussion and Analysis

Pursuant to clause 49 of the Listing Agreement with Stock Exchanges, a report on Management Discussion Analysis is given in Annexure "B".

Employee Particulars

Particulars of employees as required under section 217(2A) of the Companies Act, 1956, and the Companies (Particulars of Employee) Rules, 1975, as amended, forms part of this report.

Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo:

The particulars as prescribed under section 217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure of particulars in the report of Board of Directors) Rules, 1988, are as follows :-

A. Conservation of Energy:

The Company’s operations are not power intensive. Nevertheless, your Company has introduced various measures to conserve and minimize the use of energy.

B. Research & Development (R & D):

a) Specific areas in which R & D is carried out by the Company:

R&D activities include tools development with the object of devising efficient methods of pre-production phase. The Company has in place a quality assurance team to ensure adherence to stringent quality norms.

b) Benefits derived as a result of the above R&D:

Reduction in cost and improvement in quality adaptability of Software Systems and Packages.

C. Technology Absorption, Adaptation & Innovation:

No technology has been imported. Indigenous technology available is continuously being upgraded to improve overall performance.

D. Foreign Exchange Earnings & Outgo:

Activities relating to Exports & Export Plans:

The Company is making continuous efforts to explore new foreign markets and to enlarge its shares in the existing markets for export of digital animation content.

Information on Foreign Exchange earnings and outgo are specified in the notes to the accounts.

Acknowledgements

Your directors place on record their appreciation of the support extended by Customers, Investors, Bankers, Business Associates, Vendors, Share Holders and various Government Agencies. Your directors would also like to place on record the contribution made by the employees / consultants who have together contributed for the success of your Company.

On behalf of the Board of Directors

Krishnakumar Subramanian

Chairman and Managing Director

Mumbai, 20^th August, 2015