Reliance MediaWorks Ltd Management Discussions

Financial Results

The standalone performance of the Company for the financial year ended March 31, 2017 is summarised below:

Financial performance

During the financial year under review, your Company has earned income of Rs.6,164.73 mn against Rs.2,133.32 mn in the previous financial year. The overall net profit of the Company before exceptional items is Rs.2,481.95 mn compared to net loss of Rs.4,265.65 mn in the previous financial year. The profit after exceptional items during the current financial year is Rs.2,481.95 mn as against loss of Rs.1,971.25 mn in the previous financial year. The profit after tax of Rs.2,481.95 mn is primarily on account of sale of equity shares of Prime Focus Limited Further, during the financial year under review, the Company has issued Unlisted Unsecured Redeemable Non-Convertible Debentures amounting to Rs.2,000 mn. Further, the Company has converted its long term liabilities into preference share capital of an amount of Rs.10,400 mn by allotting 208,00,00,000 Redeemable Non-Convertible, Non-Cumulative Preference Shares of Rs.5/- each, fully paid up.

Overview and state of the Companys affairs Scheme of Arrangement

During the year under review, your Directors had approved the Scheme of Arrangement (the Scheme) under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 (the Act) for transfer and vesting of the Lease Rentals Business of the Company to Reliance Commercial Finance Limited on a going concern basis. The Appointed Date for the Scheme is March 31, 2017.

Further the said Scheme has been sanctioned by Honble National Company Law Tribunal (NCLT), Mumbai Bench vide its order dated October 18, 2017. The Scheme has become effective on November 16, 2017 on filing with the Registrar of Companies, Maharashtra at Mumbai with effect from March 31, 2017 i.e. Appointed Date.

Business Operations

The Company owned real estate interest in two Cinema properties located at IMAX, Wadala and R Mall, Mulund in Mumbai. During the financial year 2016-17, the Company continues to earn lease rentals from these properties.

Further, during the financial year 2016-17, the Company provided advisory services in relation to the distribution and production of movies and television content, by utilizing the experience and expertise available with the Company due to forays in such business earlier.

During the financial year 2016-17, Big Synergy successfully produced further seasons of Who Wants to be a Millionaire in regional languages like Malayalam, Marathi, Tamil and Telugu. A new game format called Sell Me the Answer was produced in Telugu and Marathi language. Connexion a format developed and owned by Big Synergy is running successfully in Tamil and Kannada language and News Wiz in English language.

For the financial year 2017-18, Big Synergy has been getting ready for an increased diversified demand for quality TV and digital content. Some of the committed projects for the year are Kaun banega crorepati Season -9, Bose for ALT Digital Media, Bro for Voot (Viacom18), Indias Best Job for Discovery and News Wiz second season. Peoples choice in Malayalam for asianet and Connexion in Tamil.

Orders, if any, passed by ReGulator or Courts or Tribunals

No orders have been passed by the regulator or courts or tribunals impacting the going concern status and the Companys operations.

Internal Financial Controls and their adequacy

The Company has in place adequate internal financial controls across the organization. The same is subject to review periodically by the internal audit cell for its effectiveness. During the year, such controls were tested and no reportable material weaknesses in the design or operation were observed.