IN HOUSE PRODUCTIONS LIMITED
ANNUAL REPORT 2011-2012
Your Directors present their Nineteenth Annual Report together with the
Audited Accounts of the Company for the year ended 31st March, 2012.
1. FINANCIAL RESULTS:
31st March 31st March
(in Rs.) (in Rs.)
Gross Profit before Financial (3,166,566) 10,792,618
Cost and Depreciation
Less: Financial Cost 69,299 8,165,492
Depreciation 683,348 935,021
Profit/(Loss) before tax (3,919,213) 1,692,105
FBT, Current taxes & Short - 300,000
Profit/(Loss) after tax (3,919,213) 1,392,105
Balance of Profit/(Loss) from 40,747,218 39,355,112
Balance carried to Balance 36,828,004 40,747,218
In view of loss incurred during the year under review, your Directors do
not recommend any dividend to the Shareholders for the financial year ended
31st March, 2012.
During the year under review, the company marketed electronic media rights
of certain feature films of the company. The company's television program
production/marketing activity was disappointing during the year under
review, in spite of good efforts put in. This effort should yield good
results in the current year. The Company has already been registered with
various ministries in New Delhi and also with NFDC. In the current year the
Company has already done couple of ad films for Panchayati Raj Ministry and
is in the process of making couple of documentaries for them. The Company
is in the process of making documentary films for Ministry of Textile as
well. The Company in the current year should be producing a 26 part
documentary series on tribes of India for Doordarshan.
The Company during the year under review rather focused more on the medical
division because of more opportunity in this area of business. This
division performed well during the year under review.
The Company had a turnover of Rs 777.99 lakhs as against previous year of
Rs 786.41 lakhs. However the Company's revenue declined, the primary reason
being the delayed start of our daily show, which has resulted in a clear
shift of revenue. Hence, the Company's loss before tax level stood at
Rs.39.19 lacs against previous year profit figure of Rs 16.92 lacs.
4. FUTURE OUTLOOK:
The company shall continue to explore initiatives like acquisition of
production and marketing rights of successful and performing programmes and
also explore more opportunities in television content production for hindi
and regional channels. We have made couple of pitches to leading satellite
channels the result of which should be reflected in the current financial
year. Apart from the above we have submitted couple of good television
shows fiction and documentary proposals for Doordarshan along with couple
of feature film broadcast proposals. Apart from these the Company will be
getting more work from various ministries thru' NFDC.
5. MANAGEMENT'S DISCUSSION AND ANALYSIS REPORT:
Management's Discussion and Analysis Report for the year under review, as
stipulated under Clause 49 of the Listing Agreement with Stock Exchange,
Mumbai, is included elsewhere in this Annual Report.
6. CORPORATE GOVERNANCE:
A separate report on Corporate Governance together with Certificate from
Practicing Chartered Accountant on its compliance is included elsewhere in
this Annual Report.
Shri R S Ravindran retires by rotation at the forthcoming Annual General
Meeting and being eligible have offered himself for re-appointment.
Mr. Ramesh Chandra Sharma has resigned on 25th May 2012 from the post of
Director in In House Productions Limited.
8. LISTING ON THE STOCK EXCHANGE:
The Company's shares are listed with the Bombay Stock Exchange and the
Company has paid the necessary listing fees for the financial year 2012-13.
9. FIXED DEPOSITS:
The Company has not accepted or renewed any Fixed Deposits within the
meaning of Section 58A of the Companies Act, 1956.
10. DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to Section 217(2AA) of the Companies Act, 1956, your Directors
(i) In the preparation of annual accounts, the applicable Accounting
Standards have been followed along with proper explanation relating to
(ii) 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 profit of the Company for the
(iii) The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities.
(iv) The Directors have prepared the Annual Accounts on a going concern
11. DIRECTOR'S REMARK ON AUDITORS' QUALIFICATION:
With regards to auditors' qualification mentioned in clause 4 of Auditors'
Report regarding Note 22(1), 22(2) & 22 6 (iii) are self explanatory.
With regards to auditors' qualification mentioned in clause 4 of Auditor's
Report regarding Note 4(A)(a) for Non provision of interest on Bank loan,
your Directors would like to inform you that the company has made one time
settlement of Rs 285 Lakhs (Rupees Two crores eighty five lakhs only) with
Axis Bank Limited, Andheri Branch on 18th June 2012 and required amount has
M/s Mukesh M Shah & Co, Chartered Accountants, who are the Statutory
Auditors of the Company, retires at the conclusion of the ensuing Annual
General Meeting and are eligible for re-appointment.
13. PARTICULARS OF EMPLOYEES COVERED UNDER THE (PARTICULARS OF EMPLOYEES
The Company has not paid any remuneration attracting the provision of
section 217(2A) of the Companies Act, 1956 read with Companies (particulars
of employees rule), 1975. Hence no information is required to be appended
to this report in this regard.
14. ADDITIONAL INFORMATION:
Information in terms of section 217(1)(e) of the Companies Act, (Disclosure
of particulars in the Report of Board of Directors) Rules, 1988 and forming
part of the Directors Report is appended in Annexure to this report.
Your Directors would like to express their grateful appreciation for
assistance and co-operation received from Banks, Government Authorities,
Stock Exchange, Producers and Right holders, Television Channels,
Customers, Vendors and Members during the period under review. Your
Directors also wish to place on record their deep sense of appreciation for
the committed services of the executives, staff and workers of the Company.
For and on behalf of the Board of Directors
Dated: 14th August 2012.
ANNEXURE TO DIRECTORS' REPORT FOR THE YEAR ENDED 31ST MARCH 2012:
Information in terms of Section 217(1)(e) of the Companies Act, (Disclosure
of particulars in respect of Board of Directors) Rules, 1988 are as under:
A. CONSERVATION OF ENERGY:
The operations of the Company are not energy intensive. However energy
conservation measures are being taken for regular preventive maintenance of
all equipments. This enhances productivity and efficiency of the equipment
resulting in power saving.
B. TECHNOLOGY ABSORPTION:
As the Company has not acquired any technology, the question of absorption
of technology does not apply to the Company.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO:
During the year, the foreign exchange out go was to the extent of
Rs.14,111,855 mainly in respect of purchase of database and expenses
incurred on foreign travel. The Company has earned foreign exchange
equivalent to Rs.57,251,392 in respect of subscription received for the
supply of data, service charges.
For and on behalf of the Board of Directors
Date : 14th August 2012.
MANAGEMENT DISCUSSION AND ANALYSIS
The Directors have pleasure in presenting the Management Discussion and
Analysis Report for the year ended 31st March, 2012.
The company was started to capitalize on the growing demand for 'quality'
programming of the mushrooming satellite channels.
The company has a good infrastructure for a total production environment
for television software, marketing television software, documentaries,
events, and Television commercials and trading in feature film and
television program rights, world wide.
IN HOUSE PRODUCTION'S OBJECTIVES:
To produce and market international quality television software for leading
Indian and Offshore terrestrial and satellite television channels.
Produce and market relevant television software for India's leading
terrestrial channel - Doordarshan that penetrates across the length and
breadth of the country. Export television software to countries in Asia,
Europe, USA, Africa and the Middle East.
Acquire media properties on an ongoing basis including television software
concepts, scripts and treatment, film concepts, television and feature film
broadcast rights, music rights for films and service contracts with leading
actors, directors, cameramen, music directors etc., on a project basis.
To build a library of television programs that may be exploited in the
domestic and international markets. The company has successfully created
and produced some of the best television software in the country in genres
such as soaps, sitcoms, thrillers, variety shows, events etc., for local
and International television stations and clients. New genres are becoming
increasingly popular and as a result more entrants are expected to
participate which makes the media more competitive. The Company will be
working more closely with various ministries and shall be producing
documentary and social welfare ad films, which is a big break through the
Company got due to sustained efforts put in.
ECONOMIC, INDUSTRY AND BUSINESS OVERVIEW:
In 2011, the Indian Media & Entertainment (M&E) Industry registered a
growth of 12 percent over 2010, to reach INR 728 billion. The growth
trajectory is backed by strong consumption in Tier 2 and 3 cities,
continued growth of regional media and fast increasing new media business.
Overall, the industry is expected to register a CAGR of 15 percent to touch
INR 1,457 billion by 2016.
The year 2011 has been a challenging year not just for the Indian M&E
Industry, or even the Indian economy, but for the larger world economy.
While India is still expected to grow at a healthy pace, growth is
projected to be lower than earlier expectations.
While television continues to be the dominant medium, sectors such as
animation & VFX, digital advertising and gaming are fast increasing their
share in the overall pie. Radio is expected to display a healthy growth
rate. Print, while witnessing a decline in growth rate, will continue to be
the second largest medium in the Indian M&E Industry. The film industry had
a reason to cheer, with multiple movies crossing the INR 100 crore mark in
domestic theatrical collections and INR 30 crore mark in C&S rights.
Advertising spends across all media accounted for INR 300 billion in 2011,
contributing to 41 percent of the overall M&E Industry's revenues.
Advertising revenues witnessed a growth of 13 percent in 2011, as against
17 percent in 2010. In terms of performance, 2011 proved to be a year with
mixed results in terms of growth across different sub-sectors. The
traditional media businesses, experienced a slow down compared to last
year, especially in the second half of the year. However, the new media
segments like animation and VFX, on-line and gaming businesses witnessed
phenomenal growth rates. Smart phones, tablets, PC's, gaming devises etc.,
all form the foundation of a new wave in media usage. This is gradually
impacting the way content is being created and distributed as well.
Multiple media including TV, films, news, radio, music etc., are being
impacted with this change. There is a greater need for integration and
innovation across traditional and new media, with changing media
consumption habits and preferences for niche content. Media companies today
have no choice but to provide more touch points to engage with audiences.
Source: FICCI-KPMG REPORT.
FLOW AND PRODUCT MANAGEMENT:
Regular ideation process backed by a strong shoot, logistics, product,
talent and crew management helped the company not only to save money and
time but also has increased its delivery level to its peak, with less
wastage and quick scalability. The trading activities and the medical
division of the company has got very good response and the company should
expect a good growth in the year's ahead.
THREATS, RISKS AND CONCERNS:
The management of risk does not imply risk elimination but prudent risk
management. Given the company's market position, any new entrant represents
competition. The company has been one of the consistent content providers
for the last few years it can withstand the competition despite and
increasing number of new players. Due to high attrition of key
professionals and actors the quality of the programs could suffer. The
company strength is more on the story lines, script and screenplay rather
than on the actors and the company has performance oriented appraisal
system thus resulting in low attrition level. The company has moved very
strongly in the area of trading in television software and films. But there
is always a risk in sourcing good programs in a reasonable acquisition
cost. The company is quite confident to move ahead in this front with its
contacts and past track record in this field.
INTERNAL CONTROLS AND THEIR ADEQUACY:
The company believes in formulating adequate and effective internal control
systems and implementing the same to ensure that the interests of the
company are safeguarded and reliability of accounting data and its accuracy
are ensured with proper checks and balances. The senior management team
meets to address issues like operational efficiency, protection and
conservation of resources, accuracy and promptness in financial reporting
and compliance with laws and regulation, at regular frequency to discuss
various issues that influence the business and to take strategic decisions.
The company has an internal audit system, which submits report to the
Chairman of Audit Committee periodically.
FINANCIAL AND OPERATIONAL PERFORMANCES:
The last year has been a challenging one and we have tried to seek new
opportunities in the changing environment. Through a variety of strategies,
our income from overall operations i.e. from the Healthcare Division and
from Media Operations has lowered from Rs 867.73 lakhs to Rs 815.44 lakhs
on year to year comparison. The Company's turnover decreased, compared to
the previous year. However the Company's revenue declined, the primary
reason being the delayed start of our daily show, which has resulted in a
clear shift of revenue. Hence the Company's loss before tax level stood at
Rs 39.19 lacs against previous year profit figure of Rs 16.92 lacs. The
Company is taking suitable measures to improve the turnover and margins in
future operations and to attain better efficiency.
As a knowledge database and service provider, we are fully conscious of our
responsibility toward our customers. Our efforts are directed toward the
fulfillment of customer satisfaction through the quality of services. As
the consolidation of this industry gains momentum, the need to develop a
dedicated team of skilled manpower assumes urgency and importance.
We will continue to focus on training and motivation of manpower so as to
develop teams of qualified and skilled personnel to effectively discharge
their responsibilities in a number of projects and activities. It is, in
this context, which we have been working towards promoting the skills and
professionalism of our employees to cope with and focus on the challenges
of change and growth.