unistar multimedia ltd Management discussions


Industry Overview

The M&E industry comprises businesses that produce, distribute and offer ancillary digital services and products for Motion Pictures, Video & Audio Recordings, Television Programmes and Commercials. It also includes Streaming Content, Music, eSports, Broadcast, Radio, and Text and Book Publishing Video Games sectors. The industry is backed by a shift in consumer preferences and change in demand supported by dynamic technology, innovation, and intense competition.

When the world was first hit by the Covid-19 pandemic, mediums like TV, movies, web series, and streaming videos became the major sources of entertainment, information and window to the outside world. This led to a massive increase in viewership, which, in turn, played an essential role in increasing the number of players in the M&E industry.

The M&E sector has witnessed a sharp recovery since the easing of Covid-19 restrictions in 2021-22 with the reopening of movie theatres and the resumption of travelling. Thereby helping add a positive start to the year. Further, changing consumer behaviour and advanced technologies, including broad band providers, network owners, and connected TV manufacturers, play crucial role in accelerating demand. The broadband will be taking steps to simplify and integrate tools across the platforms to improve user experience. Further, the global M&E sector ad spending is expected to showcase growth in total spending of US$ 824 Billion in the period 2021-2024 with a CAGR of 6.5%.

Opportunities and Threats

According to a report published in Livemint, the Indian OTT video streaming market may record a CAGR of more than 20% to touch US$ 13 Billion-US$ 15 Billion over the next decade. Revenue from TV advertisement is showcasing a stable growth which widens the Company’s revenue generation sources and provides ample opportunity for the Company. The increasing adoption of pirated content can have a significant negative influence on the business, and is a major threat. Demand for our entertainment services may be affected by changes in technology and consumer consumption trends. The entertainment industry is very competitive and constantly changing. Consumers now have more alternatives for accessing various forms of entertainment through new and existing distribution methods.

Segment wise performance

The company is taking all the necessary efforts to continue existing projects of the company, no new serial projects have being started this year as the viewership has decreased rapidly in last few years. The company focuses on completing the remaining projects and also by the line does cost cutting so as to survive in the competitive environment.

Outlook

The Indian Media & Entertainment industry has being on a growth path. Value creation for our shareholders is our perennial motto. We continue to make concrete strategies to ensure we leverage our leadership market position. We continue to create capabilities, infrastructure, content and platforms aligned to emerging consumer preferences and audience behavior.

Risks & Concern

New technologies are disrupting the traditional model of the industry. With an increase in OTT platforms, the rapid expansion of the industry brings uncertainty and a shift in the traditional model. The OTT platforms’ convenience and affordability, and unique content, are impacting the traditional industry. Customers now have a greater variety of alternatives available at their disposal. This makes customer retention a huge challenge since they always seek various options at affordable prices. The events taking place at the macro level, i.e., politics, law and regulations, or other external factors beyond the business control, might impact business operations. The economic risk refers to the danger of losing money on a foreign investment due to changes in business circumstances or the negative impact of macroeconomic variables such as Government policies or the fall of the existing government and substantial swings in currency fluctuations.

Performance of our Company

During the year under review, the Company’s total turnover is Rs.212.38/- Lakhs, and profit for the year Rs.95.42 Lakhs.

Internal Control Systems

Your Company has in place adequate internal control systems commensurate with the size and nature of its business. Internal control systems comprising of policies and procedures are designed to ensure reliability of financial reporting, timely feedback on achievement of operational and strategic goals, compliance with policies, procedures, applicable laws and regulations, safeguarding of assets and economical and efficient use of resources. The system is assessed periodically. The Internal Audit team continuously monitors the effectiveness of the internal control systems. It reports to the Audit Committee about the adequacy and effectiveness of the internal control system of your Company

Financial Performance: a. Share Capital:

The Paid up Share Capital of the Company as on 31st March, 2022 stands at Rs.9,66,49,500/-divided into 96,64,950 equity shares of Rs.10/- each fully paid up. b. Reserves and Surplus: The Reserves and Surplus is Rs.27.80 Lakhs as on the end of the Current year. c. Total Income: During the year under consideration, total income is Rs.212.38 Lakh/-

Employee Relations

Company had smooth relations with its employees during the year under review.

Material Development in Human Resource

The Company continues to have excellent employee relations. Your Directors acknowledge and thank the employees for their continuous support. The Company has strong commitments to follow the best of the HR practices and believes in up-lifting the overall competence of its employees through regular training, workshops and seminars.

Ratio Analysis

Sr. No. Ratio Analysis Numerator Denominator 31.03.2022 31.03.2021 % Variance Reason for variance (above 25%)
1 Current Ratio Current Assets Current Liabilities 2.00 19.00 -89.48% DecreaseinCurrentratiois on account of increase in Trade payables andcurrent tax liabilities during the year and higher sales
2 Debt Equity Ratio Total Debts Total Shareholders Equity 0.00 - N.A. Duringtheyear2020-21,the Company had no debt, hencethedebtequityratio has become zero in March’21
3 Debt Service Coverage Ratio Earning for Debt Service Debt Service N.A. N.A. N.A.
4 Return on Equity Ratio Net Profit for the period Average Shareholders Equity 95.41% -3418.94% -102.79% Higher return on equity during 2021-22, due to higherprofitsin2021-22and high provisionings in 2020- 21
5 Inventory Turnover Ratio Cost of Goods sold Average Inventory N.A. N.A. N.A. --
6 Trade Receivables Turnover Ratio Revenue from operations Average Trade Receivables 1.89 N.A. N.A. --
7 Trade Payables Turnover Ratio Total Purchases Average Trade Payables 1.82 N.A. N.A. – -
8 Net Capital Turnover Ratio Revenue from operations Average Working Capital 1.47 - N.A. --
9 Net Profit Ratio Net Profit After Tax Revenue from operations 53.54% N.A. N.A. --
10 Return on Capital employed EBIT Capital Employed 10.95% -404.00% -102.71% EBIThasincreasedin2021- 22, due to higher sales, accordingly Return on Capital employed has increased
11 Return on Investment Net Profit After Tax Average Total Assets 9.71% -134.43% -107.22% Higher profits in 2021-22 has ledtotheincreaseinreturn on investment

Cautionary Statement

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable securities, laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could influence the Companys operations include economic developments within the country, demand and supply conditions in the industry, input prices, changes in Government regulations, tax laws and other factors such as litigation and industrial relations.

Date: 03rd September, 2022
Place: Mumbai
For Unistar Multimedia Limited
Sd/-
Suresh Bafna
Managing Director
DIN: 01569163