Thinkink Picturez Ltd Management Discussions

Annexure E

MEDIA & ENTERTAINMENT INDUSTRY IN THE INDIAN ECONOMY:

The Media and Entertainment (M&E) industry has experienced growth and transformation over the years. Factors such as internet access, economic growth, and increased consumer spending have played a role in its popularity.

These factors have greatly contributed to the advancement of the industry making India a frontrunner in adoption. As a result, industry groups now have access to amounts of data that can help them gain better insights into their consumers. Moreover, India has emerged as a content creator, particularly in the field of visual effects (VFX).

The Indian M&E industry has proven its resilience to the market and is headed towards substantial expansion. This upward trend is driven by growing consumer demand and increased advertising revenue. According to FICCI EY Indias advertising to GDP ratio is projected to increase from 0.38% in 2019, to 0.4% by 2025 with the media and entertainment industry reaching a valuation of $35.4 billion.

MARKETING INITIATIVES:

The Company has been working across regions to make brand in the industry. It strives to differentiate itself from the others with its innovative ideas and brilliant execution. The Companys mission is to drive engagement through trendy, youthful and quality content. We are also actively engaged in promoting and developing new initiatives that engage audience.

GOVERNMENT INITIATIVES FOR THE MEDIA AND ENTERTAINMENT INDUSTRY (FY 2024-25):

1. Union Budget 2024-25: Key Highlights

• Tax Reforms:

> Withdrawal of 2% Equalisation Levy on e-commerce supply or services.

> Reduction in TDS rate on e-commerce transactions from 1% to 0.1%.

> Reduction in corporate tax rate for foreign companies from 40% to 35%

> Extension of Basic Customs Duty exemption on motion picture, music, and gaming software for use in gaming consoles, printed or recorded on media, until March 2026.

• Broadcasting Infrastructure:

> Upgradation of 11 production/transmission centres to HD.

> Procurement of 7.5 lakh DTH set-top boxes for remote, tribal, and Left-Wing Extremism (LWE) areas.

> Expansion of FM services with the introduction of 26 new FM channels, increasing coverage area by 4.5%.

• Public Service Broadcasting:

> Digitization and modernization of broadcast infrastructure, including studios, news units, and OB vans.

> Completion of remaining projects under the Broadcasting Infrastructure and Network Development (BIND) scheme, with the installation of 7 new FM transmitters to extend coverage, especially in border and rural areas.

2. National AVGC Policy and Skill Development

> The National AVGC (Animation, Visual Effects, Gaming, and Comics) Policy aims to position India as a global hub for AVGC talent by:

> Establishing Centers of Excellence in collaboration with state governments.

> Integrating AVGC education into the formal education system.

> Promoting public-private partnerships to foster innovation and industry growth.

3. Infrastructure Development and Digital Transformation

> Development of Film Cities

> Digital Infrastructure

4. WAVES Summit 2025

> India hosted the inaugural World Audio Visual & Entertainment Summit (WAVES) from May 1-4, 2025, in Mumbai, attracting over 10,000 delegates from more than 90 countries.

5. Support for Content Creators and Regional Content

> Creator Economy Fund

> Regional Content Platforms

FUTURE OUTLOOK (2025-30)

• Indias M&E industry is expected to cross Rs. 4.5 lakh crore (US$55 billion) by 2030.

• AI, AR/VR, and data-driven storytelling will shape the next phase of content innovation.

• The sector will witness

> Greater consolidation among content platforms.

> Emergence of Indian tech-media startups.

> Cross-border content creation with Southeast Asian and Middle Eastern markets.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has in place well-established policies and procedures for internal control of operations and activities. It continuously strives to integrate the entire organization - from strategic support functions to core operational functions. Company has put in place a set of standards that enables it to implement internal financial control across the organization and ensures that the same are adequate and operating effectively. The findings and recommendations of the statutory and internal auditors are periodically reviewed by the Board, which suggests corrective actions based on them when required. Audit Committee of the Board of Directors is also active in the system of checks and balances that ensure the adequacy and effectiveness of the internal control systems and suggests improvements to strengthen the same.

HUMAN RESOURCES

The Company believes that employees are at the core of its strategies to achieve all present and future organizational goals. The Company has consciously developed a positive working atmosphere that provides a satisfying work environment, promotes career progression and encourages employee safety. In the current financial year, we have focused our efforts on enhanced learning and development programs, enhanced communications, making our policies more employees friendly, and overall nurturing a culture of collaboration and teamwork. Our concerted efforts to enable the growth of our employees along with the Company, has helped us significantly in ensuring enhanced employee satisfaction in Company.

"SWOT" ANALYSIS

STRENGTHS

• Integrated Business Model

• Strong managerial capability

• Cordial relations across entertainment industry

• Lower response time with efficient and effective service

• Expertise in mass-appeal movies and music

• Repository of curated content

WEAKNESS

• Revenue and profitability are directly linked to the exploitation and growth of our content.

• Rapid Technological changes

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

OPPORTUNITY

• The Digital India initiative by the Government of India

• Rise of OTT with strong subscription growth

• Increased penetration of Hybrid connected TV STBs, Smart TVs etc

• Changing media consumption habits and evolving lifestyles of youngsters.

• Increasing reach of 4G and fall in data prices to enhance the consumption of online content.

• AVOD (Advertising Supported Video on Demand) is now one of the fastest growing ad segments.

THREATS

• Fleeting Consumer expectations

• Increasing cost of rights for movies and songs

• Fragmentation

• No entry barriers

MEDIA AND ENTERTAINMENT INDUSTRY TRENDS 2024

• Media & Entertainment Industry Digital Transformation Statistics 2025

The media & entertainment industry has experienced tremendous growth in the past few years. According to Statistic,

> The value of the media and entertainment market showcases a higher growth level and will reach around 2.93 trillion by the end of 2026.

> The level of Revenue in the Digital Media market is projected to reach US$627.60bn in 2026.

> The video streaming apps Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 9.48%, resulting in a projected market volume of US$137.00bn by 2027.

• Benefits Of Digital Transformation in Media & Entertainment

The digital transformation in media and entertainment has benefited the entertainment industry in a number of ways. It has helped in enhancing the growth and development in this sector. Given below are the advantages of media and entertainment digital transformation:

> Enhance User Experience

The entertainment industry has become very competitive. In order to gain viewers attention by offering them excellent customer experience, the integration of digitalization has helped to enhance user experience.

The users can watch the content of their choice as per their availability on the entertainment platform designed by an expert in media & entertainment software development company.

The usage of 3D technology and entertaining graphics helps in enhancing their experience and will help the businesses operating in the industry to get a competitive edge.

> Increase In Brand Collaboration

To make your brand more popular in the media and entertainment industry, you need to collaborate with various brands. The emergence of digitalization can help in making these collaborations more enhanced and easier.

The Self-serve platforms and digital technologies have made it easier for media companies to remove manual processes and launch effective ad campaigns automatically on their platform. It has also helped in increasing their business revenue.

> Access To Real-Time Data and Analytics

The data can be the greatest asset of a media company which can help them experience an unmatched growth level. AI and other trending technologies have helped companies access realtime data related to viewers preferences. This data can be used to make the content more usercentric and trending. Also, the data can be used for bringing innovation in entertainment industry.

> Effective Advertisements

To make your content more popular amongst the audience, you need to advertise it on multiple platforms. The emergence of advanced technologies has made it easier and simpler.

Now media companies can showcase their advertisements on multiple entertainment platforms easily. Also, they can add customization in the ads to make them more impactful and popular.

> Wide Audience

The customer base of the media & entertainment industry was very limited earlier. But after the emergence of digitalization, it has grown at a very fast pace.

The media companies can release their films and web series on global platforms where people from all over the world can view them without facing any geographical restrictions. With an increased customer base, your business can get a higher amount of revenue and fast pace business growth.

> Enhanced Accessibility

In earlier times making, it was very challenging for artists to make their content accessible to the audience. They have to make it rewatch to the audience by involving various middlemen. This will help in raising security concerns.

But with the emergence of digital platforms, artists can share their creations directly with the audience. They do not require any middlemen in between. Also, the audience can have access to unlimited entertainment options and get wider choice options.

TECHNOLOGIES RESPONSIBLE FOR DIGITAL TRANSFORMATION IN THE MEDIA AND ENTERTAINMENT INDUSTRY

Are you curious how the media 24/7 entertainment industry has undergone such a massive transformation? Well, here are a few technologies that are responsible for the Digital Transformation in The Media and Entertainment Industry:

• Artificial Intelligence

AI is a revolutionary technology that has helped in the digitalization transformation in the entertainment industry. One of its ground-breaking applications includes AI dubbing, a cutting-edge solution that has revolutionized the way videos and films are localized for global audiences." Through AI apps designed by professional custom artificial intelligence development company, businesses can enhance their business communication and make it more effective by using chatbots. Also, the revolutionary AI can help you analyse your customers preferences and customize your business content according to those preferences.

• Block chain

The use of decentralized blockchain technology has transformed the working of businesses operating in the entertainment industry. The technology helps businesses to track IP across many channels. The technology helps to make entertainment content accessible to all users. Technology helps music artists can have a more open and direct relationship with the audience.

• Augmented And Virtual Reality

The AR and VR technology has helped in improving the user experience. Through the use of AR/VR technology, picture clarity can be improved up to a great extent. This will help to enhance the audience viewing experience and keep them indulged with your platform for a longer time duration. These days movies are available in 3D modes making the viewers feel connected with the storyline.

• Machine Learning

The machine learning algorithm is used to understand customers assumptions and content preferences. The algorithm can be used for predicting the changing trends in the entertainment industry. It is very helpful for businesses operating in the entertainment industry to improve their services and products per customer preferences.

• IoT (Internet Of Things)

The IoT is a powerful technology for accelerating your business growth and helps media and entertainment businesses to equip their business with valuable data and insights. This will help your business to know your customers well. It will help you in making personalizations and add innovation to your content. From block chain app development to metaverse development Rising Max Inc. is capable of fulfilling your business requirements with its featured-rich solutions for multiple industry domains.

Financial Performance & Analysis

(Rs. in Lakhs)

Particulars	31-03-2025	31-03-2024
Revenue from operations	898.75	979.20
Other Income	130.00	72.48
Total Revenue	1028.75	1051.68
Profit before Taxation	(7.05)	347.25
- Tax	4.00	97.25
- Deferred Tax	(1.59)	(1.10)
Net Profit/ (Loss) For the Year	(9.46)	251.09

SEGMENT WISE PERFORMANCE

The Management reviewed the disclosure requirement of segment wise reporting and is of the view that since the Companys products are covered under single business segment in terms of AS-17 and therefore separate disclosure on reporting by business segment (product wise) is not required.

CAUTIONARY STATEMENT

The above Management Discussion and Analysis contains certain forward-looking statements within the meaning of applicable security laws and regulations. These pertain to the Companys future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties, regarding a fluctuation in earnings, our ability to manage growth, competition, economic growth in India, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, government policies and actions with respect to investments, fiscal deficits, regulation etc. In accordance with the Code of Corporate Governance approved by the Securities and Exchange Board of India, shareholders and readers are cautioned that in the case of data and information external to the Company, no representation is made on its accuracy or comprehensiveness though the same are based on sources thought to be reliable. The Company does not undertake to make any announcement in case any of these forward-looking statements become materially incorrect in future or update any forward-looking statements made from time to time on behalf of the Company.