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Inhouse Productions Ltd.

BSE: 526610 Sector: Media
NSE: N.A. ISIN Code: INE120B01024
BSE 00:00 | 02 Mar Inhouse Productions Ltd
NSE 05:30 | 01 Jan Inhouse Productions Ltd
OPEN 4.90
PREVIOUS CLOSE 4.90
VOLUME 31
52-Week high 4.90
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 4.90
Sell Qty 899.00
OPEN 4.90
CLOSE 4.90
VOLUME 31
52-Week high 4.90
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 4.90
Sell Qty 899.00

Inhouse Productions Ltd. (INHOUSE) - Director Report

Company director report

IN HOUSE PRODUCTIONS LIMITED ANNUAL REPORT 2011-2012 DIRECTOR'S REPORT 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: Year ended 31st March 31st March 2012 2011 (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 Provisions Profit/(Loss) after tax (3,919,213) 1,392,105 Balance of Profit/(Loss) from 40,747,218 39,355,112 previous years Balance carried to Balance 36,828,004 40,747,218 Sheet 2. DIVIDEND: 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. 3. OPERATIONS: 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. 7. DIRECTORS: 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 confirm that:- (i) In the preparation of annual accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departures. (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 financial year. (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 basis. 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 been paid. 12. AUDITORS: 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 RULES) 1975: 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. 15. ACKNOWLEDGMENT: 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 Sd/- Ajay Shanghavi Managing Director Place: Mumbai 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 Sd/- Ajay Shanghavi Managing Director Place: Mumbai 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. HUMAN CAPITAL: 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.