sibar media entertainment ltd Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Media and Entertainment Industry :

This growth was primarily driven by resurgence of media spends by advertisers across media platforms. The advertising spends across all media accounted, contributing to a better percent of the overall M&E industry revenues. Advertising revenues witnessed a good growth in 2011.

Business Profile :

Sibar Media & Entertainment Ltd, is a media and entertainment company engaged primarily in broadcasting and content development, production and its delivery. The Company has various channels that serves widest array of content choices.

Sibar Media & Entertainment Ltd, continued to have a leading share in the General Entertainment with a good average weekly channel share. Sibar Media & Entertainment dominated the prime time viewing, being the leader in the prime time.

During the year, the channel launched various new successful shows and key events showcased during the year. The Company has access a better share in viewers.

Business Strategy :

The key elements of Sibar Media & Entertainment’s strategy during the year were

(i) to take appropriate steps to safeguard its leadership position in a fiercely competitive environment

(ii) to concentrate on additional revenues from digital pay platforms

iii) rationalize on costs across different heads

(iv) fortify its expansion

Financial Information :

Sources of Funds

Currently, we have only one class of shares i.e., Equity Shares of par value 10/- each. Our Authorised Share Capital is Rs. 39,50,00,000.00 divided into 39,500,000 equity shares of 10/- each. The Issued, Subscribed and Paid Up capital stood at Rs. 39,00,07,000 divided into 39,000,700 equity shares of 10/- as at March 31, 2013 (same as the previous year).

Profit & Loss Account

During the year under review, your Company achieved a sales turnover of Rs. 15,36,890.00 compared to the sales turnover of Rs. 15,21,194.00 achieved in the previous year.

Other Company Information :

Sibar Media & Entertainment Ltd.

i) Internal Control Systems

The Company has in place adequate internal control systems, commensurate with its size and nature of operations so as to ensure smoothness of operations and compliance with applicable legislation. The Company has a well-defined system of management reporting and periodic review of businesses to ensure timely decision-making.

The management information system forms an integral part of the Company’s are monitored and controlled. Any material change in the business outlook is reported to the Board. Material deviations from the annual planning and budgeting, if any, are reported to the Board on quarterly basis. An effective budgetary control on all capital expenditure ensures that actual spending is in fine with the Capital Budget.

ii) Human Resources

The Company seeks, respects and values the diverse qualities and backgrounds that its people bring to it and is committed to utilizing the richness of knowledge, ideas and experience that this diversity provides. The work environment is stimulating and development of core competencies through format training, job rotation and hands on training is an ongoing activity.

Risk Factors :

Competition from other players:

The Company operates in highly competitive environment that is subject to innovations, changes and varying levels of resources available to each player in each segment of business.

Ever changing trends in Media sector:

It may not be possible to consistently predict changing audience tastes. People’s tastes vary quite rapidly along with the trends and environment they live in. This makes it virtually impossible to predict whether a particular shows would do well or not. With the kind of investments made in ventures, repeated failures would have an adverse impact on the bottom line of the company.

Macroeconomic environment:

Macroeconomic environment can be a potential source of risk. The unpleasant trinity of moderating growth, high inflation and monetary tightening can adversely impact advertising revenues of the Company, which forms the largest component of the Company’s revenues.