united entertainment solutions ltd Management discussions


UNITED ENTERTAINMENT SOLUTIONS LIMITED ANNUAL REPORT 2005-2006 MANAGEMENT DISCUSSION AND ANALYSIS SALES AND OPERATIONS: During the year the company generated total income of Rs. 89,208 (000) as against Rs.107,152 (000) East year showing a dip of about 17%. The financial results during the aforesaid period reveal an operational profit of Rs.32, 022 thousands as compared to Rs. 36,006 thousands earned during the previous year. The net profit was at Rs.50 thousand as Rs. 2,265 thousands of the previous year. The drop in performance was due to stiff competition and lower capacity utilization The company, during the year was also upgrading find expanding its facilities due to which some of the facilities could not be used by it. The expansion and upgradation would be completed by the end of July, 2006. Your Directors are confident of improving the profitability of the company in coming years and continue to focus on effective cost management, and improved service levels. BUSINESS OVERVIEW: In order to strengthen its presence in the post production business your company has upgraded and expanded its technological competence by investing in the latest technology (FinalCul Pro, Smoke Ver.7) etc to deliver high, quality digital solutions faster and more effectively. Your company also added further complementary equipment to its Telecine facility viz. Keycode Reader and Sound Follower to enhance the facilitys service. Keeping in mind the steep growth of the Feature Films Business in India (and the simultaneous growth of its holding company, UTV software Communications Limited, your company further ventured into setting up an entire post-production facility (DI, Recording, Graphics & VFX) at Andheri to service the Motion Picture Industry. This expanded facility will go on stream by end of July, 2006.