Global Overview:
World GDP grew by 2.7% in calendar year 2024, with regional growth varying significantly. The United States saw robust growth at 2.8%, while the Eurozone experienced more subdued growth at 0.8%. Growth in emerging markets was driven by India and China, which recorded growth rates of 6.5% and 5%, respectively. For the most part, the year was marked by improving financial conditions, declining inflation and a partial de-escalation of regional conflicts.
In the United States, the balance of risks has shifted from inflation to growth, as the effects of increased tariff measures would begin to impact the economy. In addition, changes in the regulatory environment, immigration policies and fiscal policy are expected to influence the dynamics between growth and inflation. The upside risk to inflation from tariffs, coupled with the downside risks to growth, could create a challenging environment for monetary policy. Technology is expected to remain a bright spot for the US economy in 2025, with spending projected to surpass USD 2 trillion for the first time.
The economies of Europe and UK continue to remain fragile. However, the commitment by Germany to permit fiscal loosening through a special EUR 500 billion off-budget infrastructure fund, to be disbursed over a decade, could alter the medium-term growth dynamics for Europe.
China would be the most directly impacted economy if the tariffs imposed by the United States take effect. To stabilise the economy, the government may employ a combination of monetary easing and fiscal support measures aimed at boosting domestic consumption and addressing weaknesses in the property sector.
The Gulf Cooperation Council (GCC), led by Saudi Arabia, is likely to continue strengthening both the physical and digital infrastructure of the region, in addition to monetising its oil & gas assets. As GCC countries embark on the transition from oil to clean energy and pursue various industrialisation initiatives, the regions growth opportunities remain healthy.
With global cross-border trade and investment flows slowing there is a growing risk of rising cost pressures, reduced productivity and slower efficiency gains. However, with trade in services not being directly affected by tariff related disruptions, the global IT outsourcing market is expected to remain relatively resilient. Indias technology sector is expected to grow by around 5% in FY 2025-26, with revenues projected to exceed USD 300 billion.
India remains relatively insulated from global headwinds and is on track to become the worlds third-largest economy in the medium-term. It continues to be one of the fastest-growing large economies, supported by favourable demographics, investment led impetus, and ongoing regulatory reforms.
Indian Economy:
Despite the prevailing global uncertainties, the Indian economy is estimated to grow between 6.25-6.50% during the current year 2024-25. The agriculture sector is expected to grow ~4%, the industrial sector ~6% and the services sector ~7%. In absolute terms, the agriculture sector continued to operate well above pre-pandemic trend levels. Whereas, in the industrial sector, sustained growth through FY 2023-24 and FY 2024-25, has led to the closure of the trend gap. The recovery within the services sector has been uneven, and as a result, the sector is only now approaching its long-term trend levels.
Indias headline inflation, as measured by the Consumer Price Index (CPI), has eased considerably during the year. The monthly average CPI print was 4.63% in FY 2024-25 vs. 5.35% in FY 2023-24. This decline was primarily led by a decrease in core services and fuel price inflation. Food price inflation continued to hold firm impacted by weather related supply disruptions. For FY 2025 26, the Reserve Bank of India (RBI) has forecast CPI inflation at 4%, based on the expectation of a normal monsoon.
Policy rates remained unchanged through the April December 2024 period with the repo rate at 6.50%. However, with relatively weaker growth prints and falling underlying inflation, the Monetary Policy Committee (MPC) changed its policy stance from ‘Withdrawal of Accommodation to ‘Neutral in October 2024. Further, to inject liquidity into the banking system a reduction in CRR to 4.00% of NDTL from 4.50% was announced in December 2024. In February 2025, the RBI lowered the repo rate to 6.25% in response to downward revisions in growth forecasts for H1 FY 2025-26, while keeping the inflation trajectory aligned with its target.
The external trade sector has demonstrated stability and growth despite uncertainties in the global trade environment. In FY 2024-25, export trade in merchandise and services exceeded USD 800 billion, a growth of 5.5%. Total imports during the period are estimated at USD 915 billion, registering a growth of 6.8%.
After a relative stable H1 FY 2024-25, the rupee weakened against the USD by around 5% in the period from October to (mid) February, a period which saw increased financial market volatility. While Foreign Portfolio Investment (FPI) inflows were positive, amounting to approximately USD 20 billion in H1 FY 2024-25, the trend reversed in H2 FY 2024-25, with net outflows of a similar magnitude. Investments in debt securities saw net inflows of around USD 15 billion, whereas equity investments registered net outflows of a comparable amount for FY 2024-25.
The Indian economy is expected to remain resilient, supported by robust consumption from households, alongside the governments continued focus on capital expenditure. Capacity utilisation in manufacturing remains high and balance sheets of banks and corporates remain healthy. The economy has also undergone rapid digitalisation over the past decade, significantly boosting productivity. The service sector has increasingly shifted towards high-tech digital solutions, including e-commerce, fintech, cloud computing and AI-driven services.
The risks to growth remain largely external rising tariff barriers, stretched supply chains and continuing geopolitical tensions. The country will have to adapt to the evolving global landscape and harness its domestic strengths to drive growth in a sustainable manner.
Media & Entertainment Industry:
Indias media and entertainment (M&E) sector grew by 3.3% in 2024, surpassing INR 2.5 trillion and is projected to reach INR 2.7 trillion in 2025 and continue a 7% CAGR to INR 3.1 trillion by 2027, driven by digital media becoming the largest segment and increased demand for live events and creator economy. In 2024, digital media overtook TV, with significant growth in online gaming and OTT content. The sector is also seeing strong growth in live events and the creator economy, boosted by technological advancements like AI.
The Indian M&E sector contributed 0.73% to the GDP, Digital media emerged as the largest segment, accounting for 32% of revenues, while traditional media like television, print, and radio saw declines in core advertising and subscription revenues. Advertising revenues increased by 8.1%, driven by digital performance advertising and demand for premium media.
Company Overview:
The Company is looking for exploring the new media, feature film, OTT content production apart from pitching regular television content with various broadcasting channels.
In the area of new media, new content with IPR is intent to produce concentrating to create content library with long-term vision. Company has planned to identify new talents across all genres of production activity from acting talents to ground level shooting execution. Taken up discussion with some of the leading broadcasting channels to produce and explore new gen-z content on revenue sharing model.
Company is intent to venture live in concert events in India and abroad on a regular and routine basis considering the low turn around period from creative initiation to the completion of the event.
Television Program telecast during 2024-25: |
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Program Name and Language |
Broadcasting Channel | Category |
Kizhakku Vaasal $ |
Vijay TV | Daily Series |
Thayamma Kudumbathaar @ |
DD Tamil | Daily Series |
Human Resources
The Company fosters a performance-oriented work culture and offers amongst the best opportunities in the industry for professional as well as personal growth of its employees. Over the years, the company has built up a strong human resource structure. The Company has qualified and experienced team of professionals in creative, production, finance, legal & secretarial and HR & admin. The Company usually outsources talents and technicians for the project based on the project need and expectation outcome of the content.
Infrastructure
Radaan has own post production facilities to meet its own demand on execution of projects. These facilities comprise of seven edit suites including one film competent edit, five voice studios including one RR & FX and one exclusively for Final Mastering. The hardware and software have been sourced to meet quality demands from time to time. The companys state of the art non linear editing suites from Matrix and Discreet Logic run on powerful SGI and IBM workstations connected by a sophisticated broadband network.
Financial Overview:
The discussion and analysis given below relate to the audited financial statements of the Company and should be read in conjunction with them and related notes for the financial year ended 31st March 2025.
The financials of the only subsidiary company viz., M/s.Radaan Media Ventures Pte. Ltd., Singapore did not have any business / operational activities. However, the same has been considered for the consolidated financial statements and also included for the discussion and analysis.
Financial Position:
Property, Plant & Equipment
During the year, after depreciation property, plant & equipment stood at Rs.45.41 lakhs (Previous year Rs. 50.34). The Companys net block of fixed assets was Rs.1919.58 Lakhs (Previous year Rs.1844.22 Lakhs) on standalone basis. The subsidiary company doesnt have any fixed assets and the consolidated position of fixed assets was same as of standalone figures.
Non-current Investment
Investments in Subsidiaries and Associates: - During the year 2024-25 and previous year 2023-24, there is no diminution in the carrying value of investment in Radaan Media Ventures Pte. Ltd. Consequently, the carrying value of those investments remains at Rs.9.35 Lakhs. Other Investments: - The carrying value of other investment as at end of current financial year was Rs.0.25 Lakhs (previous year end Rs.0.30 Lakhs) both on standalone and consolidated basis.
Non-current loans and Advances
The carrying value of long term loans and advances as at the end of current financial year was stood at Rs. 20 Lakhs on standalone basis (previous year end Rs. 20.00 Lakhs). The consolidated sum of long-term loans and advances were same as of the standalone figures.
Other Non-current Financial assets
The carrying value of other non-current financial assets representing Gratuity and Leave Encashment Plans as at end of current financial year was Rs.39.95 Lakhs (previous year end Rs. Rs.48.46 Lakhs) both on standalone and consolidated basis.
Other Non-current Assets
Other non-current assets, comprising of prepaid taxes, statutory and other deposits stood at Rs.521.01 lakhs for the current year as compared to Rs.484.51 lakhs of the previous year. The consolidated sum of other non-current current assets was same as of the standalone figures.
Deferred Tax Assets
Net deferred tax assets resulted from timing difference of depreciation on fixed assets and provision on reversal of FCT, on standalone basis was Rs.48.65 lakhs as at the current balance sheet date against Rs.44.82 lakhs as at the previous balance sheet date. The subsidiary company has not recognized any deferred tax assets / liabilities and the consolidated sum was same as of the standalone figures.
Inventories
Inventories on standalone basis, representing work in progress were decreased to Rs.166.65 lakhs from Rs.1024.53 lakhs, and consolidated inventories were same as of the standalone figures.
Trade Receivable
All the debtors are generally considered good and realizable and necessary provision has been made for debts considered to be bad and doubtful. As at the end of current financial year debtors on standalone basis were decreased to Rs. 69.62 lakhs from Rs. Rs.282.85 lakhs, of which, debts outstanding for more than six months were at Rs.41.60 lakhs (net of provisions and written-off) and other debts were decreased to Rs.28.02 lakhs from Rs.257.29 lakhs. The consolidated balance of trade receivables of current financial year was same as of the standalone figures.
Cash and Cash Equivalent:
As at the current balance sheet date, the cash and bank balances were increased, on standalone basis to Rs.83.72 lakhs from Rs.14.96 lakhs, and on consolidated basis increase to 84.65 Lakhs from 14.96 Lakhs.
Short-term loans and Advances
Short term loans and advances as at the end of current financial year on standalone basis stood at Rs.18.66 lakhs as against 25.71 lakhs of the previous year and on consolidated basis decreased to Rs.0.20 lakhs from Rs.7.25 lakhs.
Other Current Assets
Other Current Assets of current financial year on standalone basis were decreased and stood at Rs.3.05 lakhs from Rs.30.36 lakhs and the consolidated figures remain as same as standalone figures.
Share Capital
There was no change in share capital of the Company during the financial year 2024-25.
Securities Premium
The securities premium was remained unchanged at Rs.753.66 lakhs, both in standalone and consolidated statements.
Retained Earnings:
The retained earnings at the end of current financial year on standalone basis was stood at (-) Rs.2,945.01 lakhs as against (-) Rs. 2,978.68 lakhs of previous year, resulting from current year operating losses. On consolidated basis the retained earnings at the end of current financial year were stood at (-) 2,977.43 lakhs as against (-) Rs. Rs.3,010.14 lakhs of previous year balance sheet date.
Other Reserves:
The foreign currency translation reserve in the consolidated statements was stood at (-) Rs.5.04 lakhs as against previous financial year of (-) Rs.4.52 lakhs at the current balance sheet date. Capital reserve in the consolidated statements was increased from Rs.3.01 lakhs as at end of previous financial year to Rs.3.36 lakhs at the current balance sheet date.
Non-current Borrowings:
The non-current borrowings as on 31st March 2025 were decreased to Rs.1622.21 lakhs from Rs. 2531.51 Lakhs (including current maturities of long term borrowings, unsecured loans from directors and borrowings from other corporate. The consolidated non-current borrowings were same as of the standalone position after adjusting inter- company transactions.
Other Non-current Financial liabilities
Other long term financial liabilities, comprising of customer advances and deposits were decreased on standalone basis to Rs.3.38 lakhs from Rs.341.37 lakhs and the consolidated position was same as of standalone, since the subsidiary had no such liabilities.
Current Borrowings
The current borrowings secured loan towards working capital requirement was increased from Rs.562.55 lakhs as on previous year to Rs.1139.74 lakhs as on 31st March 2025. Since the subsidiary company doesnt have any working capital borrowings other than loan from holding company, which was adjusted for inter-company transaction, the consolidated current borrowings were same as of standalone position.
Trade payables
The trade payables comprising of sundry creditors as at 31st March 2025, on standalone basis decreased from Rs.880.26 lakhs to Rs.687.88 lakhs, and on consolidate basis from Rs.885.43 lakhs to Rs.693.19 lakhs.
Other Current Financial liabilities
Other current financial liabilities comprising of salary payable, taxes and PF/ESI payable was increased on standalone basis from Rs.358.32 lakhs as on previous balance sheet date to Rs.376.87 lakhs as on current balance sheet date. The consolidated position of other current liabilities was same as of standalone position.
Financial Performance:
Revenue
The total income for the current financial year was increased to Rs.2288.04 lakhs as against Rs. Rs.2137.50 lakhs of the previous year on both standalone and consolidated basis. The standalone and consolidated income from operation for the financial year was Rs.2287.10 lakhs as against Rs.2133.17 lakhs in the previous year. Other income on standalone and consolidated basis was stood at Rs.0.94 lakhs for the current year as against Rs.4.33 lakhs of the previous year. The other income was mainly on account of other miscellaneous income.
Expenses
The operating expenses both in standalone and consolidated basis were increased during the year, to Rs. 1688.99 lakhs from Rs.1555.82 lakhs. The administration expenses incurred was increased from Rs.316.04 lakhs to Rs.320.86 lakhs and on consolidation of the subsidiary company, the administration expenses were Rs.317.71 lakhs during the previous financial year as against Rs.321.74 lakhs for the current financial year.
The current finance cost for the year was stood at Rs.243.36 lakhs as against Rs.306.36 lakhs of the previous year for the standalone and on consolidated basis it stood at Rs.243.44 as against Rs Rs.306.38 of the previous year.
Depreciation and amortization expense for the year was decreased on standalone basis from Rs.5.69 lakhs to Rs.4.93 lakhs. As the subsidiary company has no fixed assets, the impact on consolidation of depreciation and amortization expenses was nil and reflects the same figures.
Profitability
During the year, on standalone basis, Operating profit before Interest, Depreciation, Tax and Exceptional Items (EBITDA) was stood at to Rs.221.39 Lakhs, as against the operating loss (EBITDA) of (Rs.265.63 Lakhs) of the previous year, and on consolidated basis, the operating profit (EBITDA) during the year was stood at Rs.219.44 Lakhs as against the operating loss (EBITDA) of (Rs.263.96 Lakhs) of the previous year.
Net profit after Tax (PAT) of the Company for the year on standalone basis was Rs.33.72 Lakhs, as against net loss (PAT) of (Rs. 43.38 Lakhs) of the previous year, and on consolidated basis, the Net Profit (PAT) during the current year was stood at Rs.32.76 Lakhs as against net loss (PAT) of (Rs. 45.047 Lakhs) of the previous year.
Basic and Diluted Earnings / (Loss) Per Share [EPS] computed based on number of equity shares outstanding, as on the Balance Sheet date, is a profit of Rs.0.06 per share [Previous year: profit of Rs.0.01 per share] both on standalone and consolidated basis.
Cash Flow
Cash flow from operating activities
In the current financial year, the company on standalone basis generated a net cash of Rs.843.00 lakhs in operating activities, as against Rs. 322.05 lakhs in previous financial year. On consolidated basis the net cash generated in operating activity was Rs.842.10 lakhs as against Rs. 322.05 lakhs in previous financial year. Other components are provided in cash flow statement.
Cash flow from investing activities
The company has made both on standalone and consolidated basis, a net cash outflow of Rs.75.36 lakh during the year against Rs. 4.59 lakh during the previous year on investing activities. Other components are provided in cash flow statement.
Cash flow from financing activities
The net cash outflow on standalone basis from financing activities during the current financial year was Rs.698.88 lakhs as against Rs.323.04 lakhs during the previous year. On consolidated basis the net cash outflow from financing activities was Rs.697.05 lakhs against Rs. 323.06 lakhs during the previous year. Other components are provided in cash flow statement.
Key Financial Ratios The detailed financial ratio be referred to in the notes on account of Standalone financials together with basis and reasoning in the case of 25% variation between previous year and current year ratio.
SCOT Analysis
Strengths |
Challenges: |
a. Good HR, among others highly talented Creative Team |
a. Controlling cost of production |
b. State of the art infrastructure |
b. Augmentation of customer base |
c. Successful Track Record in Tele-serials |
c. Dependence on limited talents for creative content |
d. Brand Value |
d. Retention of talent |
e. Fully integrated operations |
e. Changing tastes of the viewers / audience |
Threats: |
Opportunities: |
a. Non-availability of adequate skilled Technicians |
a. Emerging OTT platforms |
b. Non-availability of fully reliable viewership rating |
b. Expansion of new media trend and usage |
system |
|
c. Low entry barriers |
c. Increased no of TV content viewers across various |
| platforms | |
d. Changing government policies |
d. Increasing Indian Diaspora across the world |
e. Piracy |
e. Improved technology thereby increased access |
The Company has strong internal control system commensurating with its size and nature of operation which provide reliable financial and operational information, compliance of applicable statutes, safeguarding of assets, executing transactions with proper authorizations and ensuring compliance of corporate policies. Highest standard of internal control is ensured by regular audit by the internal auditors. The significant observations made in the internal audit reports on internal control measures, if any, are implemented based on the recommendation of Audit Committee of the Board. The statutory auditors of the Company have issued an attestation report on the internal control over financial reporting as stated under section 143 of the Companies Act, 2013.
Risks and concerns
The company depends on deliverables of standard content and exploitation. Relationship with broadcasting channel and any difference of understanding could have material adverse effect on production and telecast of programs. Company generates revenues from production and assignment of content on a funded basis, which slashes away IP rights of content and thereby denying exploitation of content in all means. Popularity and maintain / attracting viewership are a key for success and any failure could harm business or prevent from growing, which either directly or indirectly could have a material adverse effect on the business prospects, financial condition and results of operations. The viewership rating may also dependent on measurement methodologies which is an external factor to the company.
The companys business depends in part on the adequacy, enforceability and maintenance of intellectual property rights in the entertainment products and services. Piracy of the Companys content, products and intellectual property could result in a reduction of the revenues that the Company receives from the legitimate sale, licensing and distribution of its content and products. The Company devotes substantial efforts to protecting its content, products and intellectual property, but there can be no assurance that the Companys efforts to enforce its rights and combat piracy will be successful.
The substantial revenues for content are generated from the sale of advertising spots by the channel, subscribers for OTT platforms and a decrease in advertising expenditures and drastic fall in subscribers could reduce the demand for the Content, as a cascading effect. Declines in consumer spending due to weak economic conditions could also indirectly negatively impact the advertising revenues by causing downward pricing pressure on advertising because advertisers may not perceive as much value from advertising if consumers are purchasing fewer of their products or services.
The Companys businesses are subject to a variety of laws and regulations. The Company could incur substantial costs to comply with new laws, regulations or policies or substantial penalties or other liabilities if it fails to comply with them. In addition, if there are changes in laws that provide protections that the Company relies on in conducting its business, it would subject the Company to greater risk of liability and could increase its costs of compliance.
For and on behalf of Board of Directors |
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Date: 14th August, 2025 |
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Place: Chennai |
Sd/- | Sd/- |
| Narayanan Iyer | R.Radikaa Sarathkumar | |
| (DIN : 03470438) | (DIN : 00238371) | |
| Independent Director | Managing Director | |
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