ANNUAL REPORT 2011-2012
Your Directors have pleasure in submitting the Fifteenth Annual Report of
your Company together with the Audited Accounts for the year ended 31st
1. Financial Results (Rs. in lacs)
Income from Operations 3602.60 3494.30
Operating Expenditure 3124.45 3376.73
Amortisation 166.55 173.94
Operating Profit 311.60 (56.37)
Other Income 15.55 81.41
Profit before Finance Costs 327.15 25.04
Finance Costs 312.11 251.70
Profit after Finance Costs
but before Tax 15.04 (226.66)
Tax Expenses 13.84 73.56
Net Profit After Tax 1.20 (300.22)
Financial and Operational Review:
The Company has earned a gross income of Rs. 3618.15 lacs for the financial
year 2011-12, as compared to Rs. 3575.70 lacs in the previous year,
recording an increase of Rs. 42.45 lacs.
The Company has earned a net profit of Rs. 1.20 lacs for the year as
compared to net loss of Rs.300.22 lacs in the previous year.
Interest expenditure for the year under review has marginally increased by
Rs. 60.41 lacs as compared to the previous year. Depreciation during the
year has recorded a marginal decrease by Rs. 7.40 lacs as compared to
marginal increase of Rs. 7.02 lacs in the previous year.
Earnings per share have been Rs. 0.002 for the current year as compared to
NIL in the previous year. Resources & Liquidity:
The Company's paid up capital is Rs.11,48,72,950 with accumulated Reserves
& Surplus of Rs. 15220.39 lacs.
Management Discussion and Analysis Report (MDA)
The detailed Analysis of the Operating performance of the Company for the
year, the state of affairs and the key changes in the operating environment
has been included in the Management Discussion and Analysis section which
forms part of the Annual Report.
2. Changes in Capital Structure
There has been no change in the capital structure during the year under
3. Transfer to Reserves
The amounts increased in the reserves during the year on account of the
profit of Rs. 1,20,301.27 as compared to the previous year decrease on
account of loss of Rs. 300,21,500.24
Your Directors do not propose any dividend for the year ended 31st March,
5. Board of Directors
Mr. Niranjan Shivdasani, retire by rotation as Director at the upcoming
Annual General Meeting and being eligible offers himself for reappointment.
The Board recommends his appointment.
Brief resume of the Directors, nature of their expertise in specific
functional areas, names of companies in which they hold directorships and
memberships/chairmanships of Board Committees, their shareholding and
relationships between them inter se, as stipulated under clause 49 of the
Listing Agreement with the Stock Exchanges, are provided in the report on
Corporate Governance forming part of the Annual Report.
6. Corporate Governance
Pursuant to Clause 49 of the Listing Agreement with the Stock Exchanges,
Corporate Governance Report and Management Discussion and Analysis and
Auditors' Certificate are appended as part of the Annual Report. The
required certification by Chief Executive Officer and Chief Financial
Officer is also appended to the Annual Report.
The requisite certificate from the Auditors of the Company, M/s Sarath &
Associates, Chartered Accountants, confirming Compliance with the
conditions of Corporate Governance as stipulated under the aforesaid clause
49, is annexed to this Report.
7. Directors' Responsibility Statement
Pursuant to the requirement under section 217(2AA) of the Companies Act,
1956, the Directors' confirm the following:
(i) that in the preparation of the Annual Accounts for the financial
year ended 31st March, 2012, the. applicable accounting standards have been
followed and that there are no material departures from the same;
(ii) that the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of the
Company as at 31st March, 2012, and of the Statement of profit and loss of
the Company for the year ended on that date;
(iii) that the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956, for safeguarding the assets of the
Company and for preventing and detecting fraud and other irregularities;
(iv) that the Directors have prepared the annual accounts for the financial
year ended 31st March, 2012, on a going concern basis.
There has been no material change in the nature of the business of the
subsidiaries. A statement containing brief financial highlights of the
subsidiaries is included in the Annual Report.
As required under Clause 32 of the Listing Agreement entered into with the
Stock Exchanges, a consolidated financial statement of the Company and all
its subsidiaries are attached. The consolidated. financial statements have
been prepared in accordance with the relevant accounting standards as
Pursuant to the provision of Section 212(8) of the Act, the Ministry of
Corporate Affairs vide its circular dated February 8, 2011 has granted
general exemption from attaching the balance sheet, statement of profit and
loss and' other documents of the subsidiary companies with the balance
sheet of the Company. A statement containing brief financial highlights of
the Company's subsidiaries namely Cinevista Studios Private Limited,
Cinevista Eagle Plus Media Private Limited and Video Vista Inc. for the
financial year ended March 31, 2012 is included in the Annual Report. The
annual accounts of these subsidiaries and the related detailed information
will be made available to any member of the Company/its subsidiaries
seeking such information at any point of time and are also available for
inspection by any member of the Company/its subsidiaries at the registered
office of the Company. The annual accounts of the said subsidiaries will
also be available for inspection, as above, at the head offices/registered
offices of the respective subsidiary companies. The Company shall furnish a
copy of the details of annual accounts of subsidiaries to any member on
9. Fixed Deposits
During the year under review, the Company did not accept any fixed deposits
from the public.
The Company's Statutory Auditors M/s. Sarath & Associates, Chartered
Accountants, retire at the ensuing Annual General Meeting and, being
eligible, offer themselves for re-appointment. You are requested to appoint
The Company has received the letter from them to the effect that their
appointment if made would be within the limits prescribed under Section
224(1 B) of the Companies Act, 1956 and that they are not disqualified for
such appointment within the meaning of section 226 of the said Act.
11. Secretarial Audit
As directed by. Securities & Exchange Board of India, (SEBI) secretarial
audit is being carried out at the specified period by the Practicing
Company Secretary. The findings of the secretarial audit were entirely
12. Statutory Information
Conservation of Energy & Technology Absorption
Considering the nature of the business of the Company, the particulars
required to be furnished pursuant to Section 217(1)(e) of the Companies
Act, 1956, read with the Companies (Disclosure of Particulars in the Report
of Board of Directors) Rules, 1988, relating to the Conservation of Energy
and Technology Absorption are not applicable.
Foreign Exchange Earnings and Outgo
Foreign Exchange Earnings have been Rs. 52.83 lacs as compared to the
previous year which amount to Rs. 69.31 lacs and Foreign Exchange Outgo is
NIL as compared to previous year which was 0.70 lacs.
Particulars of Employees
The provisions of Section 217(2A) of the Companies Act, 1956, read with the
Companies (Particulars of Employees) Rules, 1975, are not applicable since
there is no employee drawing remuneration exceeding the ceiling prescribed
Your Directors thank the viewers, suppliers, bankers, Financial
Institutions, Central and State Governments and Shareholders, for their
consistent support to the Company. The Directors also sincerely acknowledge
the significant contributions made by all the employees for their dedicated
services to the company.
For and on behalf of the Board
Place: Mumbai Prem Krishen Malhotra
Date : 13th August, 2012 Chairman
MANAGEMENT DISCUSSION & ANALYSIS
A very warm welcome to you, this morning, at the occasion of the 15th
A.G.M. of your Company. As compared with the year before, your Company has
redeemed lost ground and traversed back to green, from the RED, it showed
up last year in. Its been a slow and steady, but sure trail towards the
path of growth, consolidation, diversification and building volumes, which
will become more discernible to our valued shareholders, over the coming
three years. But before we talk about the way forward, lets take a look at
the year gone by.
The Financial Year 2011 - 2012 saw your Company recording a total turnover
of Rs.36,18,15,469/-. Depreciation costs accounted for Rs.1,66,54,838/-
while interest costs accrued to total Rs.3,05,07,042/-. A huge burden,
which we necessary need to cut down, in the years ahead. We're currently
looking at various options, with a sole view of curtailing our interest
costs, focusedly, in the year ahead.
The Financial Year 2011 -2012 primararily saw three of your Company's
programmes featuring across different time-bands, across different
'DIL, DOSTI, DANCE' - D3 as it is fondly called, became the channel driver
for Channel V, of the Star group. This one show singularly laid the
foundation and became the stepping stone for the channel to establish an
entire band width of prime-time fiction programming, restructuring it to a
position once commanded by Star-One, in its hey days. This show vastly
loved and hugely patronised by its target audience, is well on its way to
running right through the Financial Year 2012 -2013, on the pure merit of
its performance and the T.R.P.'s it commands. Your Company is a leader in
shows, targeted at the true youth segment.
'EK HAZAARON MEIN MERI BEHNA HAI' completes a year of its telecast, this
2nd of October 2012. Extremely well received by the entire family audience,
all over, this beautifully crafted, emotionally well webbed, romantically
tilted show, has been received whole heartedly, not only by the target
audience it was meant to reach out to, but by one and all, across all age
groups. We're extremely confident that this soap will see atleast another
year of telecast, before it concludes with its entire gamit of emotions,
conflicts and turbulence, weaved intricately within the very many
characterisations and plots, that the series has masterly put together.
We're proud to share with our valued shareholders that two of our four lead
players have been contracted by leading film makers for breaks, in their
'SEETE', on Udaya TV, completed its glorious run of 564 episodes, on the
31st of August 2012. This series has been a great learning experience for
us, which has in many ways, further intensified our resolve to do bigger
and better work in the state of Karnataka.
'MAHABHARATA is thus the new project that will find berth in the very slot
vacated by 'SEETE', on Udaya TV. A mammoth, multi-dimensional project,
entailing huge production costs, besides investment in time, effort,
passion, perseverence and perfection, this will hit the small screen on
Udaya TV's platform, from the 3rd of September 2012. We hope to have a
dream run with this Mother of all Mythological
'MAHABHARATAM' will be our maiden venture on the Sun TV. platform. It was
your Company's desire and wish to ultimately get on to the largest and the
most viewed network in terms of numbers, in the South i.e. Sun TV 'SEETE',
on Udaya, was our launch pad which not only propelled numbers on an early
non-prime-time 6 - 6.30 pm slot, but amazed both the viewers and the
channel, with it's production quality, research and authenticity,
screenplay and dialogues, visual beauty, to give your Company the much
needed recognition it needed in the South, for Sun TV to recognise your
Company's ability to allot it, the coveted Sunday morning 9.30 - 10.30 am
prime-time slot, for the Mega series titled 'MAHABHARATAM'. While this will
be a weekly, 'MAHABHARATA' telecast on Udaya TV will be a daily, telecast
five times a week, between Monday's and Friday's at the 6 - 6.30 pm time
'MAHABHARATAM', being produced by your Company in the Tamil language, will
be the very first full blown Mythological, to have been ever attempted and
produced in the state of Tamil Nadu, with Tamil actors and technicians. It
is your Company's vision, hardwork and initiative that has made this
'MAHABHARATAM' goes on the air, on Sun TV. tentatively on the 16th of
September 2012; a week here or there possibly. The biggest advantage that
we've with these products, is that the I.P.R. will vest with your Company,
We have just finished a shoot for a tele-film, for Star-Plus. The edited
length has come down to a full 80-minutes. It stars the 'DILL MILL GAYYE'
heartthrob, Karan Singh Grover, in the title role. By the time, we meet for
our Annual General Meeting, this will have been aired either on
Saturday's/Sunday's, on the Star-Plus platform, in the evenings, in August
2012. Titled 'EK NANO SI LOVE STORY', it is a beautifully crafted RomCom,
which your Company truly hopes, its valued sharholders, truly enjoy.
Besides the above, in the coming months, your Company's efforts, time and
money will be employed in the shoot of several pilot episodes, details of
which are listed below:-
1. A pilot for the channel 'Life O.K.' is scheduled for shoot, in the month
of August 2012.
2. A pilot episode for Sony TV. for a series tentatively titled 'CHAHAT.
This shoot is also scheduled for the month of August2012.
3. A test episode for a new series, to be aired on Channel V is scheduled
for shoot, in September 2012.
All these pilot episodes, will then go through a research analysis, with
various teams, charted out by channels, which has become customary today,
before putting a product on air.
If all goes well, your Company will have all the above referred series, on
the air, at some point of time, between the 3rd quarter and the 4th quarter
of 2012 - 2013. However, this is entirely dependent on the. feedback the
channels receive from their research team and most importantly, their own
need, at that point of time!
What is important and significant for our valued shareholders to note, is
that your Company has been able to access work, across different channels.
As a production Company, we promise to put in our very best, into every
singular pilot, we execute. The rest, we leave to destiny. Before
concluding, your Company would like to reiterate it's motto, for it's
shareholders. It reads :-
We've come a long way,
But, at times, we feel,
Like we've only just begun,
For there is still so much to say, to tell,
And the best has yet to come.