Think Ink Studio Ltd Management Discussions.

INDIAN ECONOMY

India continues to be one of the fastest growing economies in the world. After the temporary deceleration due to the impact of demonetisation and implementation of Goods and Services Tax (GST), the recovery in economic growth is now largely complete. Itis estimated that GDP grew at more than 7% in the second half of fiscal 2018. During FY18, there were several positive developments in the economy, which will further accelerate this growth over the next few years. The long-delayed GST wasfinally implemented and it will go a long way in improving the business environment in the country. Governments focus on infrastructure development, banking reforms and affordable housing, amongst others, will support the growth in the medium term. Growth in some segments of the rural economy has been slower in the recent past. However, forecast of a normal monsoon bodes well for the agriculture sector and would drive the rural consumption.

INDIAN MEDIA AND ENTERTAINMENT INDUSTRY

The Indian media and entertainment (M&E) industry witnessed another year of all-round growth. The pace of growth marginally accelerated in CY17, despite the lingering effect of demonetization and the impact of GST roll-out. According to the FICCI-EY Report 2018 (Report), M&E industry grew by 12.6% YoY in CY17, to X 1,473 billion. Despite the strong growth over the past several years, Indias per capita entertainment consumption is much lower than not only the developed markets but also countries with similar income levels. This provides a significant headroom for sustained growth driven by rising disposable incomes and increasing access to entertainment content. According to the Report, the Indian M&E industry is expected to grow at a CAGR ofl 1.3% toX 2,032 billion over the next three years, driven by growth in all the segments.

During the year, television increased its reach and engagement with the audience, further enhancing its reputation as the default entertainment medium. Print media continued to grow, albeit at a slower pace, due to multiple headwinds faced during the year. The movie industry surpassed all previous records riding on a strong performance at both the domestic and the international box office. Online video consumption continued its exponential growth due to the increased availability of affordable data and content on digital platforms. Following the auction of Phase III licenses, FM radio expanded into newer cities. Live Events growth was led by premium properties, activations, and sports events.

MARKET DYNAMICS

The Indian media & entertainment sector is expected to grow at a Compound Annual Growth Rate (CAGR) of 14.3 per cent to touch Rs 2.26 trillion (US$ 33.9 billion) by 2020, while revenues from advertising is expected to grow at 15.9 per cent to Rs 99,400 crore (US$ 14.91 billion).

Over FY2015-20, radio will likely grow at a CAGR ofl 6.9 per cent, while digital advertising will grow at 33.5 per cent. The largest segment, Indias television industry, is expected to grow at a CAGR of 15 per cent, while print media is expected to grow at a CAGR of8.6 per cen t.

India is one of the highest spending and fastest growing advertising market globally. The countrys expenditure on advertising is estimated at 15.5 per cent in 2016, and is expected to grow by 11.2 per cent in 2017, based on various media events like T20 Cricket World Cup, the Indian Premier League (IPL)and State elections. Television segment, which continues to hold highest share of spending, was expected to grow by 12.3 per cent in 2016 and 11 per cent in 2017, led by increased spending by packaged consumer goods brands and e-commerce companies.

SWOT ANALYSIS

1. Strengths

> Integrated Business Model

> Strong managerial capability

> Cordial relations across entertainment industry

> Sound structured national network facilitates and the boom of M&E industry

> Lower response time with efficient and effective service

> Operational excellence

> Expertise in mass-appeal movies and music

> Pool of con tents

2. Weakness

> Revenue and profitability is directly linked to the exploitation andgrowth of our content.

> Rapid Technological changes

> No prediction or forecast of audience taste about the success of films/TV shows etc.

3. Opportunities

> Rapid urbanization

> Regional Media on rise

> Digitization and New Media- New Avenues

> Growing awareness among viewers/customers about new technologies.

> New phase of low budgetmovies/TV Shows etc.

> Increase in no. of channels and Multiplexes

4. Threats

> Government & regulatory norms

> Fleeting Consumer expectations

> Decreasing Cycle time

> Increasing cost of rights for movies and songs

> There are no entry barriers in our industry, which puts us to the threat of competition from new entrants.

> Any change or shift of focus of Government policies may adversely impact our financials

INTERNAL CONTROL SYSTEMS AND ADEQUACY

The Company has regular internal audit system covering all key processes and has in place adequate internal control.

HUMAN RESOURCES

Your Company considers Human Resources to be one of the key elements to sustain competitive advantage in the Media Sector. Media organizations are human driven; its growth depends upon the quality contribution made by the people in the organization. Therefore, your Company recognizes human resources as a key component for facilitating organizational growth. Your Company has continuously worked to create and nurture an organization that is highly motivated, result oriented and adaptable to the changing business environment. The Company has its own Human Resource Policy to guide, encourage and safeguard the employees.

PERFORMANCE OF THE COMPANY

The Company has reported profits during the year under review. The operational performance of the Company is on the growth path. The Financial & operational details are mentioned in the financial statement.

FUTURE PROSPECTS

Our Company is currently engaged in the following projects:

> Scripting of Mr. SohailKhan snextis under process.

> "Kanya Kumar", a comedy feature film and also the Directorial Debut of Mr. Rajesh Sharma (also known as Mr. Raaj Shaandilya) is under pre-production in collaboration with a well known Studio.

> An "Untitled" Non-Fiction Comedy show is under production for the newly OTT platform "ZEE5" launched by the biggest entertainment giant ofIndia "ZEE NETWORKS".

> An agreement entered with M/s Essel Vision Production Limited (EVPL) to act as a "Creative Producer" for a fiction digital/web series programme which will be produced by EVPL.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis and the annual report describing the Companys objectives, projections, estimates, expectations may be "forward-looking statements" within the meaning of applicable securities laws and regulations in India and other countries. Actual results could defer materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting the domestic market, in which the Company operates, changes in the Government regulations, tax laws and other statutes and other incidental factors and unforeseen circumstances.