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Cinerad Communications Ltd.

BSE: 530457 Sector: Media
NSE: N.A. ISIN Code: INE959B01017
BSE LIVE 15:14 | 28 Oct Stock Is Not Traded.
NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 5.45
PREVIOUS CLOSE 5.70
VOLUME 10
52-Week high 7.00
52-Week low 5.45
P/E
Mkt Cap.(Rs cr) 2.83
Buy Price 0.00
Buy Qty 0.00
Sell Price 5.45
Sell Qty 509.00
OPEN 5.45
CLOSE 5.70
VOLUME 10
52-Week high 7.00
52-Week low 5.45
P/E
Mkt Cap.(Rs cr) 2.83
Buy Price 0.00
Buy Qty 0.00
Sell Price 5.45
Sell Qty 509.00

Cinerad Communications Ltd. (CINERADCOMMUNIC) - Chairman Speech

Company chairman speech

CINERAD COMMUNICATIONS LIMITED ANNUAL REPORT 2001-2002 CHAIRMAN'S REPORT CHAIRMAN'S STATEMENT I want first of all to share with you the strength of my optimism for your Company's future, in the immediate as well as the medium and long terms. It may seem odd that I should want to express a sentiment of optimism after a year in which your Company made a loss. But, there is good reason for this, both in terms of industry prospects as weir as in your company's actual performance in being able to garner potentially very profitable confirmed orders in the first 6 months of the financial year 2002-0.3. The good news is that, based on business gained during this period alone, your company is expecting a reasonable operating profit for the year 2002-03. Subsequent business orders during the latter half of the year will only add further to profits, the confirmed orders for which work is already in progress are for corporate films and documentaries for prestigious clients such as Tata Sons, the Aditya Biria Group, HSBC Bank, Jardine Matheson & Co., P & O Ports, and the Indian Hotels Company for whom we are producing a film to mark 100 years of the Tai Mahal Hotel. The continuing economic downturn in the financial year 2001-02 had compelled companies to size down and cut expenditure. In such circumstances, one of the first remedial measures that companies resort to is the scaling down of advertising budgets. This fact has been of considerable consequence to companies such as yours, which rely on corporate films and television commercials for the bulk of their revenue. While the company was able to increase sales volumes, it witnessed longer sales realisation cycles. Its profit margins also came under enormous pressure. Owing to a preponderance of supply over demand there has been widespread price cutting among production houses, and there has been a significant drop in profit margins which have more than halved as compared to the previous year. This coupled with a significant increase in overhead expenditure resulted in an operating loss of Rs. 41.75 lacs. This loss was due, to a significant extent, to an increase in overhead costs resulting from the induction of senior staff, including a Chief Executive Officer. This was to be offset by a resultant increase in revenues. We have since taken measures to reduce overheads for the time being by downsizing highly paid staff, and resorting to the induction of expertly qualified and experienced freelance individuals on a job to job basis. In the film and television industries this is by no means unusual. The upturn in the company's fortunes during the first half of financial year 2002-03 has, however, once again opened up vistas lot growth. The company can now look beyond the immediate term and plan bigger ventures with longer gestation periods. A report brought out by consultancy firm PricewaterhouseCoopers(PwC) on the industry predicts that film entertainment will drive the growth of the entertainment and media sector in India due to the increasing popularity of Indian films abroad, the Indian film entertainment business is poised to touch $ 1.5 billion by 2006, from S 617 million in 2001. The institutionalisation of corporate governance and a combination of creative professionals with professional management has attracted financing from the organised sector, particularly for film production activities. Financial institutions and banks are now lending funds for film production at attractive rates. Large industrial houses are committing funds to film production activities. A case in point is Tata Infomedia Limited, which has also set aside a separate fund for the financing of medium budget feature films. Keeping in mind this favourable environment, your company has decided to develop film projects to be financed by outside sources, as above. In this, we will be venturing into an area with great potential, and one in which I myself have valuable experience, having directed an international feature film produced by the world famous Merchant Ivory Productions. Together with our growing leadership position in the production of documentaries and corporate films, and with the current level of reduced overheads being maintained, I strongly believe your company is poised to deliver value added growth in the years to come. ZAFAR HAI Chairman and Managing Director PLACE: MUMBAI DATED: August 28, 2002

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