Mar 31, 2015
Dear Members,
The Directors have pleasure in presenting the 29th Annual Report on
the business and operations of the Company along with the Audited
Accounts of the company for the year ended March 31,2015.
Financial Performance
(Rs. in lacs)
31.03.2015 31.03.2014
Sales 1349.90 1 761.02
Less: Cost of Software 1519.69 1424.60
Gross Profit (169.79) 336.42
Other Income 151.63 155.51
Total (18.16) 491.93
Less: Other Expenses before interest 252.89 251.06
and Depreciation
Operating Profit/(Loss) (271.05) 240.87
Less: Interest 35.95 14.19
Less: Depreciation 29.14 60.62
Net Profit/(Loss) before Tax (336.14) 166.06
Less: Provision for Deferred Tax 0.00 0.00
Less: Current Tax ( MAT) 0.00 33.08
Add: MAT Credit Entitlement 0.00 (6.13)
Net Profit/(Loss) after tax (336.14) 139.11
Earning per share
Basic (1.68) 0.69
Diluted (1.68) 0.69
Dividend Rate -
Review of Financial Operations
During the year under review, the turnover was Rs. 1349.90 Lacs as
compared to Rs. 1761.02 Lacs of last year showing a decline by 23.35 %
over last year. The net loss for the year was Rs. 336.14 lacs as
compared to net profit of Rs. 139.11 Lacs of last year.
Dividend
In view of the loss suffered by the company the board is unable to
recommend any dividend for the year under review.
Business Performance
During the year under review the following major serials were telecast
1. "Teen Nadano ki Nadaaniyaan" on Reliance Big Magic Channel
2. "Singhasan Battisi" on Sony Pal Channel
3. "Betaal aur Singhasan Battisi" on Sab TV Channel
Your company had entered into Historical genre and produced Historical
based serial "Singhasan Battisi" for new channel of Sony Group-Sony
Pal. The serial was during well in term of performance and was
maintaining No. 1 position across all the programs run on Sony Pal
channel. The company was quite hope full for long run of this serial
but unfortunately the Sony pal channel discontinues all new programs
and your company serial was also one of them and this serial could run
only for six months. However, your company is doing more research in
this genre and quite hopeful to get more projects on various channels.
"Teen Nadano Ki Nadaaniyaan" On Big Magic Channel went off the air in
the Month of July 2014 due to the completion of the agreement.
Future Plans / Outlooks
The future outlook of content creator is very challenging and promising
due to huge core competition at present. Shifting consumer behaviors,
Data base, disruptive technologies, convergence and quadruple play
offerings are revolutionizing the media industry.
Digital Media and E-commerce is growing fast and setting new business
models in the Media & Entertainment Industry. Your company may explore
possibilities in this field in term of content creation or other
avenues.
The Company is also focusing on other business opportunities such as
event management and non-fiction programs. Your Company is ready to
face all tough Challenges of media and entertainment to attain future
targets for the ensuring year by expanding its business operations in
vertical modes.
The Management of the Company is constantly looking for widening the
prospects of the Company through an increased presence on various
channels, the plugging of vacant slots, the creation of unique content
for new coming channels and strategic diversification. In view of this,
the Management is confident that the Company will continue to deliver
the excellent value to the viewers and stakeholders in future.
Fund Utilization
Up to the financial year ending 31st March, 2015, the Company has
utilized Rs. 1413.64 Lacs from the funds received from the Initial
Public Issue. The balance unutilized funds which have been invested in
fixed deposits, which will be utilized in the near future.
Public Deposit
The Company has not accepted any public deposit during the year under
review.
Internal Auditor and Report
In Compliance with the provisions of the section of 138 of the
Companies Act, 2013, The company has appointed independent internal
auditor M/s Jayram & Co., Chartered Accountants, Mumbai as Internal
Auditors for the Financial Year 2014-2015. to conduct the internal
audit of the company that reviews internal controls and operating
systems and procedures. This ensures robustness and integrity of
financial reporting, internal controls, allows optimal use and
protection of assets, facilitates accurate and timely compilation of
financial statements and management reports and ensures compliance with
statutory laws, regulations and company policies.
Secretarial Audit Report
During the year, Secretarial Audit was carried out by Mr. Kaushal
Doshi, Practicing Company Secretary (ACS No. 32178) in compliance with
Section 204 of the Companies Act, 2013 and the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014. The report of
Secretarial Auditor forming part of this Annual report does not contain
any qualification, reservation or adverse remarks.
Statutory Auditors and Audit Report.
M/s Uttam Abuwala & Co., Chartered Accountants,(Firm Registration No.
111184W) Mumbai, Independent Auditors of the Company will retire at the
forthcoming Annual General Meeting and are eligible for re-
appointment. The Company has received a confirmation from M/s Uttam
Abuwal & Co., Chartered Accountants, to the effect that their
re-appointment as Statutory Auditors, if made, would be within the
limits under the section 141 of Companies Act 2013 read with the Rule 4
of Companies (Audit & Auditors) Rules 2014. It is proposed to reappoint
them from the conclusion of this Annual General Meeting till the
conclusion of the next Annual General Meeting, subject to the approval
of shareholders.
There are no qualifications or adverse remarks in the Auditors' Report
which require any clarification/ explanation. The Notes on financial
statements are self-explanatory, and needs no further explanation.
Further the Auditors' Report for the financial year ended, 31st March,
2015 is annexed with this annual report for your kind perusal and
information.
Corporate Social Responsibility
The company does not fall under the criteria of Section 135 of
Companies Act, 2013 read with the Companies (Corporate Social
Responsibility Policy) Rules, 2014, hence the said provision is not
applicable to the Company.
Loans, Guarantees and Investments.
The Company has not given any Loan or Guarantee nor has made any
Investment during the year under reporting attracting the provisions of
Section 186 of the Companies Act, 2013, hence the said provision is not
applicable to the Company.
Extract of the Annual Return
The Extract of Annual Return as required under section 92(3) of the
Companies Act, 2013 and rule 12(1) of the Companies (Management and
Administration) Rules, 2014, in Form MGT-9 is annexed with this annual
report for your kind perusal and information.
Meetings Of The Board Of Directors
The Company held Four Board Meetings during the Financial Year under
review. Details of the same forms part of the Corporate Governance
Report is annexed with this annual report.
Related Party Transactions:
Apart from the related party transactions in the ordinary course of
business , details of which are given in the notes to the financial
statements, there were no other related party transactions requiring
disclosure in Directors Report for the compliance with the companies
act, 2013.
Conservation of energy, technology absorption and Foreign Exchange
Earnings & outgo
Considering the nature of business of the company, the particulars
required to be furnished pursuant to applicable Section 134 of the
Companies act, 2013 read with Companies Rules, 2014 are not applicable
to the company. There were no foreign exchange earnings and outgo
during the current period.
Directors
A) Changes in Directors and Key Managerial Personnel
The individual details of Directors seeking re-appointment at the
ensuing Annual General Meeting of the Company are annexed to the notice
of Annual General Meeting. There were no change in Directors and Key
managerial Personnel for the year under review.
B) Declaration by an Independent Director(s)
The Company has received and taken on record the declarations from all
the Independent Directors of the Company confirming that they meet with
the criteria of independence as prescribed both under sub section (6)
of Section 149 of the Companies Act, 2013 and under Clause 49 of the
Listing Agreement with the Stock Exchanges.
C) Appointment and Remuneration
Considering the requirement of skill, eminent people having an
independence standing in their respective field, profession and who can
effectively contribute to company's business and policy decision are
considered by the Nomination and Remuneration Committee for appointment
as an independent director on the board. The Committee considers
ethical standards of integrity, qualifications, expertise and
experience of the person as appointment as director and not
disqualified under the Companies Act, 2013 and rules made there under
and accordingly recommended to the board for appointment.
Remuneration to Whole Time Director/ Executive Directors is governed
under the relevant provisions of the Companies Act, 2013 and the Rules
made there under. Independent/ Non-Executive Directors are paid sitting
fees for attending the meeting of board/committees thereof. The Company
policy on directors' remuneration is given in Corporate Governance
Report which forms part of this annual Report.
Corporate Governance Report
* The Company is committed to maintain the highest standards of
corporate governance and adhere to the corporate governance
requirements set out by SEBI. The Company has also implemented several
best corporate governance practices as prevalent globally.
* The Report on corporate governance as stipulated under Clause 49 of
the Listing Agreement forms part of the Annual Report.
* The requisite certificate from the Auditors of the Company confirming
compliance with the conditions of corporate governance as stipulated
under the aforesaid Clause 49, is attached to the Report on corporate
governance.
Risk Management Policy
The Audit Committee has established a Risk Management Policy. The
business risk is managed through cross functional involvement and
communication across Department. Risk management and internal control
processes focuses on areas that continue to meet the progressive
governance standards. The Audit Committee and Management does review
periodically the business risk areas covering operational and financial
risks to safeguard and protect the business from any risky measures.
Board Evaluation
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, in a separate meeting of Independent Directors,
performance of non-independent directors, performance of the board as a
whole and performance of the Whole Time Directors, Chairman and
executive directors was evaluated. Based on such meeting of
Independent Directors and taking into account the views of executive
directors and non-executive directors the Board had evaluated its
performance on various parameters such as Board composition and
structure, effectiveness of board processes, effectiveness of flow of
information, contributions from each Directors, efficient discharge of
their responsibilities etc.
Personnel
There were no employees covered under the preview of section 197 of the
companies Act, 2013 and the rules and amendments made under in
Companies Act, 2013. Remuneration paid to Directors and Key Managerial
Persons during the year reported in MGT 9 (Extract of Annual Return)
annexed with this annual Report.
Directors' Responsibility Statement
Pursuant to Section 134 of the Companies Act, 2013, in relation to the
Audited Financial Statements for the Financial Year 2014-2015, your
Directors confirm that:
i) In the preparation of the annual accounts, the applicable accounting
standards have been followed.
ii) The accounting policies have been consistently applied 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 at the end of
the financial year and of the profit and loss account of the company
for that period as disclosed in the enclosed accounts.
iii) Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
applicable Companies Act for safeguarding the assets of the company and
for preventing and detecting fraud and other irregularities.
iv) The annual accounts on a "going concern" basis.
v) The internal financial controls are adequate and were operating
effectively.
vi) The proper systems are made to ensure compliance with the
provisions of all applicable laws and that such systems were adequate
and operating effectively.
Acknowledgements
An acknowledgement to all with whose help, cooperation and hard work
the company is able to achieve the results.
For and on behalf of the Board of Directors
Creative Eye Limited
Place: Mumbai Dheeraj Kumar
Date: 25th May, 2015 Chairman & Managing Director
Mar 31, 2014
Dear Members,
The Directors have pleasure in presenting the 28th Annual Report
along with the Audited Accounts of the company for the year ended
March 31,2014.
Highlights of Financial Performance
(Rs in lacs)
Particulars 31.03.2014 31.03.2013
Sales 1761.02 2604.69
Less: Cost of Software 1424.60 1934.79
Gross Profit 336.42 669.90
Other Income 155.511 47.79
Total 491.93 817.69
Less: Other Expenses before
interest and Depreciation 251.06 292.91
Operating Profit/(Loss) 240.87 524.78
Less: Interest 14.19 8.68
Less: Depreciation 60.62 55.04
Net Profit/(Loss) before Tax 166.06 461.06
Less: Provision for Deferred Tax 0.00 0.00
Less: Current Tax (MAT) 33.08 39.28
Add: MAT Credit Entitlement (6.13) (39.28)
Net Profit/(Loss) after tax 139.11 461.06
Earning per share
Basic 0.69 2.30
Diluted 0.69 2.30
Dividend Rate --- ---
Review of Financial Operations
During the year under review, the turnover was Rs 1761.02 Lacs as
compared to Rs 2604.69 Lacs of last year showing a decline by 32.39 %
over last year. The net profit after tax for the year was Rs 139.11 as
compared to Rs 461.06 Lacs of last year showing a decline of 69.83 %
over last year.
Dividend
The Directors are of the view that resources of the Company needs to
be conserved for its future growth plans and hence do not recommend
any dividend for the year under review.
Business Performance
During the year under review the following major serials were telecast
-Rishton Ke Bhawar Main Ulji...Niyati on Sahara One Channel
Teen Nadano ki Nadaaniyaan on Reliance Big Magic Channel
Tujh Sang Preet Lagayi Sajna on Sahara One Channel
Safar Filmy Comedey Ka....on SAB TV Channel
Damini (Telgu) On Gemini TV Channel
Premakka Pelli (Telgu) on Gemini TV Channel
Om Namah Shivay (Re-run in Hindi) on Dangal Channel
Om Namah Shivay (Re-run in Tamil) on Zee Tamizh Channel.
It is pleasure to inform you that during the year under review your
company had expanded its Business Activities/ Operations into Southern
Market and launched two social family serials'' Damini''Â and
''Premakka Pelli''Â in prime time slot on Gemini TV (Sun Network) in
Telugu Language. Your company is quite optimistic to get more business
from southern market in future which would help to scale up the
business/operations.
As you are aware that your company is holding IPRs of three Mega
Mythological Serials Om Namah Shivay''Â,''Shree Ganesh''Â and
''Shree Hari Vishnu ( Jap Tap Vrat)''Â in all languages which are
still adding extra value to the company''s business every year. The
Company is making its brand stronger by exploiting the IPR of its mega
mythological serials in various languages on various channels across
India.
Fund Utilization
Up to the financial year ending 31st March, 2014, the Company has
utilized'' 1391.39 Lacs from the funds received from the Initial
Public Issue. The balance unutilized funds which have been invested in
fixed deposits, will be utilized in the near future.
Future Plans / Outlooks
Your Company is ready to face all tough challenges of media and
entertainment industry to attain future targets for the ensuing year
by expanding its business operations in vertical modes.
Your Company had already moved ahead and expanded its operations in
southern markets by launching two new serials in Telugu language and
quite hopeful to tap other regional languages too very soon.
Your Company is widening its prospects in Hindi Market and entering
into historical genre and shall launch a big Historical/Fantasy serial
in the second quarter of ensuing year on one of the big existing GEC
Satellite Channel. The pre-production work is in full swing and
production shall start shortly.
Your company is in process of inducting well known creative talents,
writers, and researchers on board to develop new, unique, unusual and
unheard ideas/stories/concepts of various genres to pitch to the
various satellite channels to get new projects soon in the competitive
market, which would help us to fight against all odds.
Further to the above, being as a conservative policy of the your
Company, the management is evaluating various business opportunities
in term of risk reconciliation and taking appropriate steps to move
forward to safeguard the investments and interest of the stake holders
of the company.
Public Deposit
The Company has not accepted any public deposit during the year under
review.
Directors
The individual details of Directors seeking re-appointment at the
ensuing Annual General Meeting of the Company are annexed to the
notice of Annual General Meeting.
Directors'' Responsibility Statement
The directors report that
i) In the preparation of the annual accounts, the applicable
accounting standards have been followed.
ii) The accounting policies have been consistently applied 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 at the end
of the financial year and of the profit and loss account of the
company for that period as disclosed in the enclosed accounts.
iii) Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
applicable Companies Act for safeguarding the assets of the company
and for preventing and detecting fraud and other irregularities.
iv) The annual accounts have been prepared on a''going concern''Â
basis.
v) The internal financial controls are adequate and were operating
effectively.
vi) The proper systems are made to ensure compliance with the
provisions of all applicable laws and that such systems were adequate
and operating effectively.
Auditors
M/s Uttam Abuwala & Co., Chartered Accountants, Independent Auditors
of the Company will retire at the forthcoming Annual General Meeting
and are eligible for re-appointment. The Company has received a letter
from M/s Uttam Abuwal & Co., Chartered Accountants, to the effect that
their re-appointment as Statutory Auditors, if made, would be within
the limits under Section 141(3)(g) of Companies Act, 2013. The notes
on financial statement referred to in the Auditors Report are self
explanatory and do not call for any further comments.
Conservation of energy, technology absorption and Foreign Exchange
Earnings & outgo
Considering the nature of business of the company, the particulars
required to be furnished pursuant to Section 217 (1) (e) read with
Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988 are not applicable to the company. There were
no foreign exchange earnings and outgo during the current period.
Personnel
There were no employees, covered under the purview of Section 217 (2A)
of the Companies Act, 1956 and the rules and amendments made there
under in Companies Act, 1956.
Corporate Governance
Pursuant to Clause 49 of the Listing agreement with the Stock
exchanges, a separate section titled Corporate Governance has been
included in this report. The auditors'' certificate on compliance of
the requirement of Corporate Governance in terms of Clause 49 of the
listing Agreement by the Company is annexed to this report.
Acknowledgement
Your Directors express their appreciation for the contribution made by
the employees to the improvement in the operations of the Company.
Your Directors also thank all the Government Agencies and Regulatory
Bodies, Bankers, Financial Institutions, Stakeholders, Customers,
Vendors and other business associates, who through their continuous
support and co-operation have helped in your Company''s progress.
For and on behalf of the Board of Directors
Creative Eye Limited
Sd/-
Dheeraj Kumar
Chairman & Managing Director
Mumbai
30th May, 2014
Mar 31, 2013
Dear Members,
The Directors have pleasure in presenting the 27th Annual Report along
with the Audited Accounts of the company for the year ended March 31,
2013.
Highlights of Financial Performance
(Rs. In lacs)
31.03.2013 31.03.2012
Sales 2604.69 3101.02
Less: Cost of Software 1934.79 2579.98
Gross Profit 669.90 521.04
Other Income 147.79 144.91
Total 817.69 665.95
Less: Other Expenses before interest and
Depreciation 292.91 328.35
Operating Profit/(Loss) 524.78 337.60
Less: Interest 8.68 75.12
Less: Depreciation 55.04 54.98
Net Profit/(Loss) before Tax 461.06 207.50
Less: Provision for Deferred Tax 0.00 0.00
Less: Current Tax ( MAT) 39.28 0.00
Add: MAT Credit Entitlement (39.28) 0.00
Net Profit/(Loss) after tax 461.06 207.50
Earning per share
Basic 2.30 1.03
Diluted 2.30 1.03
Dividend Rate --- ---
Review of Financial Operations
During the year under review, the turnover was Rs. 2604.69 Lacs as
compared to Rs. 3101.02 Lacs of last year showing a decline by 16.01%
over last year. The net proft after tax for the year was Rs. 461.06
Lacs as compared to Rs. 207.50 Lacs of last year showing a growth of
122.20% over last year.
Dividend
The Directors are of the view that resources of the Company needs to be
conserved for its future growth plans and hence do not recommend any
dividend for the year under review.
Business Performance
During the year under review your Company continues to be the most
preferred television content producer on leading Hindi satellite
channels.
Three major serials were on air during the year under review-
1. Rishton Ke Bhawar Main UljiÂ
Niyati on Sahara One Channel
2. Tujh Sang Preet Lagayi Sajna on Sahara One Channel
3. Safar Filmy Comedy Ka on SAB TV Channel
It is pleasure to inform that during the year under review your Company
had entered into a non-fction genre and had produced a non fction
Serial ''Safar Filmy Comedy Ka'' for SAB TV channel.
"Rishton Ke Bhawar Main UljiÂ
Niyati" a long running serial on Sahara
One channel, had completed more than 550 episodes and still doing well
in terms of performance.
"Tujh Sang Preet Lagayi Sajna" had also completed more than 275
episodes on Sahara One channel and maintaining good position on the
channel.
However "Sawaare Sabke SapneÂ
...Preeto", which was maintaining top
position in fction genre on Imagine Channel, discontinued in the month
of April 2012 due to the closure of operations by Imagine Channel.
It is further pleasure to inform that every year your Company is making
its brand stronger by exploiting the IPR of its mega mythological
serials "Om Namah Shivay" and "Shree Ganesh" in various languages on
various channel across India.
Fund Utilization
Up to the fnancial year ending 31st March, 2013, the Company has
utilized Rs. 1383.60 Lacs from the funds received from the Initial
Public Issue. The balance unutilized funds which have been invested in
fxed deposits, will be utilized in the near future.
Company''s Programmes
During the year under consideration, the major programs run by the
Company were:-
No. Name of the Serials/Programs Name of the Channel
1. Rishton Ke Bhawar Main UljiÂ
Niyati Sahara One
2. Tujh Sang Preet Lagayi Sajna Sahara One
3. Sawaare Sabke SapneÂ
...Preeto Imagine
4. Safar Filmy Comedy Ka SAB
5. Om Namah Shivay (Re-run) - Hindi Dangal
6. Om Namah Shivay (Re-run) - Bhojpuri Anjan
7. Om Namah Shivay (Re-run) - Bangla Ruposhi
8. Shree Ganesh (Re-run) - Hindi DD - Lucknow
9. Shree Ganesh (Re-run) - Marathi Saam
Future Plans / Outlooks
The future market of Media and Entertainment is very challengeable and
promising due to the huge core competition at present. The lack of
consistency and sustainability in this business is a biggest concern
for all the producers and these are forcing them to look for other
steady business opportunities, considering all risk factors, so that
they could scale up the business operations.
Your Company too fghts against all these odds. However with vast
experience and good credential in the market, would help your Company
to cope up with all these market odds. The Company is focusing on other
avenues for the diversifcation.
The Company is developing lots of new ideas in mythological, historical
and social genre which have been pitched to several channels and quite
hopeful and optimistic to get through soon.
The Company is widening the scope in non-fction genre too and moving
forward in right direction to get success shortly.
The Company may see the exposure in production/Co-production of flms
and JV for the studio business, by leasing out the studio for shooting
purpose, subject to the reconciliation of risk involved and business
viability. Being a conservative policy of your Company, the success and
failure criteria will be evaluated before entering into any new venture
to safeguard the interest of all stakeholders.
The Management of the Company is constantly looking for widening the
prospects of the Company through an increased presence on various
channels, the plugging of vacant slots, the creation of unique content
for new up coming channels and strategic diversifcation. In view of
this, the Management is confdent that the Company will continue to
deliver the excellent value to the stakeholders as it has done in the
past.
Glimpse of Awards
Some of the "Prominent Awards" received by your Company''s CMD during
the year under review are as follows:
1. Golden Achiever Award held on 12th April, 2012 for great work in
flms, serials and social felds
2. Newsmakers Achiever''s Award 2012 held on 1st May, 2012 in "Artistry
Sector"
3. The 19th Sur Aradhana Award held on 20th December, 2012 for
outstanding contribution to Indian Cinema.
Public Deposit
The Company has not accepted any public deposit during the year under
review.
Directors
The individual details of Directors seeking re-appointment at the
ensuing Annual General Meeting of the Company are annexed to the notice
of Annual General Meeting.
Directors'' Responsibility Statement
Pursuant to Section 217 (2AA) of the Companies Act, 1956, your
Directors hereby confrm that:
a) In the preparation of the annual accounts, the applicable Accounting
Standards have been followed;
b) the accounting policies have been consistently applied and
reasonable and prudent judgment and estimates have been made so as to
give a true and fair view of the proft of the Company for the year
ended 31st March, 2013 and the state of affairs of the Company as at
31st March, 2013 as disclosed in the enclosed accounts;
c) proper and suffcient care has been taken for 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; and
d) The annual accounts have been prepared on a ''going concern'' basis.
Auditors
M/s. Uttam Abuwala & Co., Chartered Accountants, Auditors of the
Company retires at the conclusion of the ensuing Annual General Meeting
and is eligible for re-appointment. The Company has received a letter
from M/s. Uttam Abuwala & Co. to the effect that their reappointment as
Auditors, if made, would be within the limits under Section 224(1-B) of
the Companies Act, 1956.
Conservation of energy, technology absorption and Foreign Exchange
Earnings & outgo
Considering the nature of business of the company, the particulars
required to be furnished pursuant to Section 217 (1) (e) read with
Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988 are not applicable to the company. There were no
foreign exchange earnings and outgo during the current period.
There were no employees, covered under the purview of Section 217 (2A)
of the Companies Act, 1956 and the rules framed there under.
Corporate Governance
Pursuant to Clause 49 of the Listing agreement with the Stock
exchanges, a separate section titled Corporate Governance has been
included in this report. The auditors'' certificate on compliance of the
requirement of Corporate Governance in terms of Clause 49 of the
listing Agreement by the Company is annexed to this report.
Acknowledgement
Your Directors express their appreciation for the contribution made by
the employees to the improvement in the operations of the Company. Your
Directors also thank all the Government Agencies and Regulatory Bodies,
Bankers, Financial Institutions, Stakeholders, Customers, Vendors and
other business associates, who through their continuous support and
co-operation have helped in your Company''s progress.
For and on behalf of the Board of Directors
Creative Eye Limited
Sd/-
Mumbai Dheeraj Kumar
28th May, 2013 Chairman & Managing Director
Mar 31, 2012
The Directors have pleasure in presenting the 26th Annual Report
together with the audited statement of accounts of the Company for the
year ended March 31, 2012.
Highlights of Financial Performance
(Rs. In lacs)
31.03.2012 31.03.2011
Sales 3101.02 1285.45
Less: Cost of Software 2579.98 1236.75
Gross Profit 521.04 48.70
Other Income 144.91 151.10
Total 665.95 199.80
Less: Other Expenses before interest and
Depreciation 328.35 253.74
Operating Profit/(Loss) 337.60 (53.94)
Less: Interest 75.12 77.99
Less: Depreciation 54.98 191.21
Net Profit/(Loss) before Tax 207.50 (323.14)
Less: Provision for deferred Tax 0.00 0.00
Profit/(Loss) after tax 207.50 (323.14)
Earning per share
Basic 1.03 (1.61)
Diluted 1.03 (1.61)
Dividend Rate - -
Review of Financial Operations
During the year under review, the Company attained the turnover from
operations amounting to Rs. 3101.02 Lacs as compared to Rs. 1285.45
Lacs of the previous year with an increase of 141.24% over the last
year. For the current year ended on 31st March, 2012, the Company
earned Gross Profit and Net Profit of Rs. 521.04 Lacs and Rs. 207.50
Lacs respectively in comparison to the Gross Profit and Net Loss of Rs.
48.70 Lacs and Rs. 323.14 Lacs respectively for the previous year.
Dividend
The Directors are of the view that resources of the Company need to be
conserved for its future growth plans and hence do not recommend any
dividend for the year under review.
Business Performance
During the year under review your Company continues to be the most
preferred television content producer on leading Hindi channels on
prime time slot. Your Company had launched three major serials on
different channels apart from on going serial "Rishton Ke Bhawar Main
Ulji...Niyati" on Sahara One Channel.
1. Sawaare Sabke Sapne......Preeto launched on Imagine Channel in the
month of July 2011.
2. Neem Neem Shehed Shehed (Tujh Sang Preet lagayi Sajna) on Sahara
One Channel in the month of August 2011.
3. Babosa Mere Bhagwan on Sony Channel in the month of July 2011.
"Rishton Ke Bhawar Main Ulji.Niyati" and "Tujh Sang Preet Lagayi
Sajna " on Sahara One channel are doing well in terms of performance
and are maintaining good position. However, "Sawaare Sabke
Sapne......Preeto" discontinued due to the closure of operations by
Imagine Channel. It was maintaining No. 1 position in fiction genre
across all programs run on Imagine Channel. "Babosa Mere Bhagwan"
on Sony Channel went off the air due to the completion of the
agreement.
Your Company had produced one comedy Tele-film titled "Bhola
Bhagat" which aired successfully on SAB Channel.
Further your Company had shot a pilot titled "Pyaar Nibhayenge Hum"
for Star Plus Channel.
Your Company also re-runs its mega mythological serials "Om Namah
Shivay" in Hindi, Telugu and Oriya language and "Shree Ganesh" in
Hindi and Marathi Languages and had made its brand stronger by
exploiting these prominent mythological serials.
Fund Utilization
Up to the financial year ending 31st March, 2012, the Company has
utilized Rs. 1408.70 Lacs from the funds received from the Initial
Public Issue. The balance unutilized funds which have been invested in
fixed deposits, will be utilized in the near future.
Company's Programmes
During the year under consideration, the major programs run by the
Company were:-
No. Name of the Serials/Programs Name of the Channel
1. Rishton Ke Bhawar Main Ulji.Niyati Sahara One
2. Sawaare Sabke Sapne......Preeto Imagine
3. Babosa Mere Bhagwan Sony
4. Neem Neem Shehed Shehed (Tujh Sang
Preet Lagayi Sajna) Sahara One
5. Bhola Bhagat (Telefilm) SAB
6. Om Namah Shivay (Re-run) - Hindi DD - Lucknow
7. Om Namah Shivay (Re-run) - Oriya Lakshya
8. Om Namah Shivay (Re-run) - Telugu Rachana
9. Shree Ganesh (Re-run) - Hindi DD - Lucknow
10. Shree Ganesh (Re-run) - Marathi Saam
Future Plans
The outlook for the year 2012-2013 looks promising and challenging. The
management of the Company is optimistic about the sustainable business
opportunities in the future. The need of unusual and unique content/
story is increasing day by day amongst the broadcasters and viewers
which is creating healthy competition in the market. The Company's
focus on its core competence namely television content production will
be further reinforced with consistency on quality programming targeting
of higher TRPs for longer life of the programs and derisking through a
wider channel presence.
Besides consolidating its position in Hindi language as the quality
television content producer, your Company has aggressively commenced
showcasing its programs on leading satellite television networks in
other languages.
Your Company is widening its prospects. The Company's various
projects are under consideration with various satellite channels and
shall be launched shortly.
Another area of revenue acceleration for the year will be the
production/co-production of Hindi feature films and events after due
diligence and careful assessment of risks involved.
Achievement
Your Company's CMD has been honored by PTC Network by giving the
"Life Time Achievement Award". The award represents and will
strengthen Creative Eye to expand its horizon in Punjab Television
Industry.
Public Deposit
Your Company has not invited / accepted any deposits from public within
the meaning of Section 58A & 58AA of the Companies Act, 1956.
Directors
The individual details of Directors seeking re-appointment at the
ensuing Annual General Meeting of the Company are annexed to the notice
of Annual General Meeting.
Directors' Responsibility Statement
Pursuant to Section 217 (2AA) of the Companies Act, 1956, your
Directors hereby confirm that:
a) In the preparation of the annual accounts, the applicable Accounting
Standards have been followed;
b) the accounting policies have been consistently applied and
reasonable and prudent judgment and estimates have been made so as to
give a true and fair view of the profit of the Company for the year
ended 31st March, 2012 and the state of affairs of the Company as at
31st March, 2012 as disclosed in the enclosed accounts;
c) proper and sufficient care has been taken for 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; and
d) The annual accounts have been prepared on a 'going concern'
basis.
Auditors
The Company's Auditors M/s. Uttam Abuwala & Co., Chartered
Accountants, retires at the conclusion of the ensuing Annual General
Meeting, and is eligible for re-appointment. The Company has received a
letter to this effect from the Auditors. Your Directors recommend their
re-appointment.
Conservation of energy, technology absorption and Foreign Exchange
Earnings & outgo
Considering the nature of business of the Company, the particulars
required to be furnished pursuant to Section 217 (1) (e) read with
Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988, are not applicable to the Company.
There were no foreign exchange earnings and outgo during the current
period.
Personnel
The provisions of section 217(2A) of the Companies Act, 1956, read with
the Companies (Particulars of Employees) Rules, 1975 is not required to
be given as none of the employee draws remuneration exceeding the
ceiling prescribed therein.
Corporate Governance
Pursuant to clause 49 of the Listing agreement with the Stock
exchanges, the following have been made part of the Annual Report.
- Management discussion and analysis
- Corporate Governance Report
- Certificate from the Auditors regarding compliance of conditions of
Corporate Governance.
- Declaration on compliance with Code of Conduct
Acknowledgement
Your Directors value the professionalism and commitment of all
employees of the Company and place on record their appreciation of the
contribution made by employees of the Company at all levels, that has
contributed to your Company's success. Your Directors thank and
express their gratitude for the support and co-operation received from
the Governments / regulatory authorities, SEBI, Stock Exchanges,
Depositories and other stakeholders including viewers, Bankers and
vendors.
On behalf of the Board of Directors of
Creative Eye Limited
Sd/-
Mumbai Dheeraj Kumar
30th May, 2012 Chairman & Managing Director
Mar 31, 2010
The Directors take pleasure in presenting before the members the
Twenty-Fourth Annual Report together with the Audited Statement of
Accounts of the Company for the financial year ended 31 st March 2010.
Financial Highlights
(Rs. In lacs)
Year ended Year ended
31st March 2010 31st March
2009
Sales 3136.95 5273.03
Less: Cost of Software 2999.45 5192.43
Gross Profit 137.50 80.60
Other Income 155.13 153.42
Total 292.63 234.02
Less: Other Expenses before
interest and Depreciation 331.95 336.00
Operating ProfitV(Loss) (39.32) (101.98)
Less: Interest 119.50 120.79
Less: Depreciation 191.52 199.47
Net Profit/(Loss) before Tax (350.34) (422.24)
Less: Provision for deferred Tax 0.00 (43.24)
Less: Provision for Fringe Benefit Tax 0.00 3.78
Profit/(Loss) after Tax (350.34) (382.78)
Earning per share
Basic (1.75) (1.91)
Diluted (1.75) (1.91)
Dividend Rate - -
Business Overview - the year in retrospect
The Indian Media and Entertainment industry stood at Rs. 58,700 crore
in 2009, a growth of 1.4% over 2008. (Source: FICCI and KPMG report
released at Frames 2010).
Rising income levels and consumerism bred from the countrys strong
economic growth are creating a growing demand for entertainment. This
coupled with technological advancements, policy initiatives taken by
the Indian Government that are encouraging the inflow of investment and
initiative by private media companies will prove to be the key drivers
for the entertainment and media industry. The industry has been
forecast to outperform the economic growth in each year, till 2011.
During the year under review your Company has launched two new Hindi
programmes, called "Ganesh Leela" on Sahara One TV and "Yeh Pyaar Na
Hoga Kam" on Colors TV. "Ganesh Leela" went on air on 17th August, 2009
while "Yen Pyaar Na Hoga Kam" went on air on 28th December, 2009.
Financial
During the year under review, the turnover was Rs. 3136.95 lacs as
compared to Rs. 5273.03 lacs last year showing a substantial decrease
by 40.50% over last year. Your Company has generated gross profit of
Rs. 137.50 lacs as against Rs. 80.60 lacs last year. The Net Loss after
Tax was Rs. 350.34 lacs as against Rs. 382.78 lacs last year.
Dividend
In view of the loss suffered by the Company, the board is unable to
recommend any dividend for the year under review.
Fund Utilization
For the financial year ended 31st March, 2010, the Company has spent
the fund received from the Initial Public Issue for the following
purpose.
(Rs. In Lacs)
Opening balance as on 01/04/2009 1404.81
Addition for Expansion of Post Production Studio 368
Closing balance as on 31/03/2010 1408.49
Companys programmes during 2009-10
During the year under consideration, the main programmes run by the
Company are:-
Sr.
No. Name of the Serial Name of the Channel
1 Yeh PyaarNa Hoga Kam Colors TV
2 Ganesh Leela Sahara One TV
3 Gharki Laxmi Betiyann Zee TV
4 Maayka Saath Zindagi BharKa Zee TV
5 Om Namah Shivay (Re-run) -Hindi DD-Lucknow
6 Om Namah Shivay (Re-run)-Hindi Star Utsav
7 Om Namah Shivay (Re-run)-Telugu MAA TV
8 Om Namah Shivay (Re-run)-Tamil Zee Tamil
9 Shree Ganesh (Re-run)-Hindi Pragya TV
10 Shree Ganesh (Re-run)-Oriya OTV
11 ShreeGanesh (Re-run)-Telugu Gemini TV
Your Company has launched a new social family drama "Yeh Pyaar Na Hoga
Kam" on Colors TV. Considering the Companys history of producing
devotional and mythological serials, it has launched mythological
seriai "Ganesh Leela" on Sahara One TV and has re-launched "Om Namah
Shivay" in Telugu Version on MAA TV in Tamil Version on Zee Tamil and
in Hindi Version on Star Utsav and Doordarshan Lucknow. Your Company
has also re-launched "Shree Ganesh" in Hindi Version on Pragya TV. in
Telugu Version on Gemini TV and in Oriya Version on OTV.
However, during the current financial year certain trademark and long
running serials such as, "Ghar ki Laxmi Betiyann", and "Maayka Saath
Zindagi Bhar Ka" telecasted on Zee TV went off the air.
This year two new shows were launched by your Company. Content is king
for any channel and your Company believes in providing clean
entertaining content for its viewers. Some of the new shows which were
launched and had successful journey are given below:
Ganesh Leela on Sahara One is a mythological series of story which is
related to the Lord Ganesha. Ganesh Leela series introduces the whole
story about lord Ganesha. Synopsis of Ganesh Leela serial is very good
which introduces different characters of the Lord Ganesha. Overall,
Ganesh Leela serial has introduced whole character of the Lord Ganesha
on Sahara One very effectively. Ganesh Leela is aired on Sahara One
from 17th August, 2009 every Monday to Friday at 8:30 PM in India.
Yeh Pyaar Na Hoga Kam on "Colors" TV
Yen Pyaar Na Hoga Kam is an incredible love story set against the
background of caste politics and class differences. The show tells the
oft heard though never-seen-before love story of people from different
castes battling their own families and the society in order to unite.
Yeh Pyaar Na Hoga Kam is a TV serial on Colors which has been launched
on 28th December, 2009 every Monday to Friday at 9.00 PM in India.
Future Outlook
The Indian Media and Entertainment industry continues to outshine the
Indian economy and the trend is expected to continue for the next few
years. Entertainment is amongst the fastest growing segments of the
television industry in India, Your Company, by virtue of its
established presence across these growing segments is ready to play a
leading role in the revolutionary phase that the industry is going
through. Economic growth and prosperity is throwing up huge
opportunities for strong players in the media and entertainment
industry.
The need of unique and unusual content is growing amongst the various
broadcasters and viewers which had created huge competition in the
market. The life of the program entirely depends on the performance in
terms of delivery of ratings.
Your Company is committed to continue creating entertainment content
through enhanced scale and efficiency. Over the years, it created
blockbuster programmes that captivated Indian imagination: Om Namah
Shivay, Ghar ki Laxmi Betiyann and Maayka Saath Zindagi Bhar Ka. Your
Company is in the advance stages of finalizing projects with the known
names in the Industry. The management of the company is constantly
looking for widening the prospects of the company. Your Company expects
to emerge as a stronger organisation with a wider exposure across
genres. Your Company doesnt just expect this wider spread to de-risk
the business but we also expect the programmes to generate an
attractive topline as well as bottomline, enabling the Company to
enhance value for the shareholders in the years to come.
Public Deposit
Your Company has not accepted any deposits within the meaning of
section 58A of the Companies Act, 1956 and Rules made there under from
the public or its employees during the year under review.
Directors
During the year, Mr. Devendra Dass Kochar, Director of your Company,
has resigned on 30th September, 2009 due to personal reasons. The Board
has placed on record its deep appreciation of the valuable contribution
made by Mr. Devendra Dass Kochar during his tenure as Director of the
Company.
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Mr. M. R. Sivaramanand Mr. T.
K. Choudhary, Directors of the Company retires by rotation at the
ensuing Annual General Meeting and being eligible offer themselves for
re-appointment
Brief resume of the directors to be re-appointed is given in the
annexure to the notice convening the 24th Annual General Meeting of the
Company.
Directors Responsibility Statement
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956, with respect to Directors Responsibility Statement, your
Directors hereby confirm that:
(i) in the preparation of the annual accounts for the financial year
ended 31st March 2010, the applicable Accounting Standards had been
followed along with proper explanations relating to material departures;
(ii) the directors had 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 at the end of the financial year and of the profit or
loss of the company for that period;
(iii) the directors had 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 irregul
-arities;
(iv) the directors had prepared the accounts for the financial year
ended 31 st March 2010 on a going concern basis.
Auditors
M/s. Uttam Abuwala & Co., Chartered Accountants, Auditors of the
company retires at the conclusion of the ensuing Annual General Meeting
and are eligible for re-appointment. The company has received a letter
from M/s. Uttam Abuwala & Co. to the effect that their reappointment as
Auditors, if made, would be within the limits under Section 224(1 -B)
of the Companies Act, 1956.
Conservation of energy, technology absorption and Foreign Exchange
Earnings & outgo
In view of the nature of activities which are being carried on by the
Company, Rules 2Aand 2B of the Companies (Disclosure of Particulars in
the Report of Board of Directors) Rules, 1988, concerning conservation
of energy and technology absorption respectively, are not applicable to
the Company. But adequate steps are being taken to conserve energy at
studios, shooting sets, post production facilities, etc.
There were no foreign exchange earnings and outgo during the current
period.
Personnel
In terms of the provisions of Section 217(2A) of the Companies Act,
1956, read with the Companies (Particulars of Employees) Rules, 1975,
as amended, the name and other particulars of the employees are
required to be set out in the Annexure to the Directors Report.
However as per the provisions of Section 219(1 )(b)(iv) of the said
Act, the Annual Report excluding the aforesaid information is being
sent to all the Members of the Company and others entitled thereto.
Members who are interested in obtaining such particulars may write to
the Company at its Registered Office.
Corporate Governance
Your Company is committed to global best practices. A Report on
Corporate Governance as stipulated under Clause 49 of the Listing
Agreement with the Stock Exchanges forms a part of the Annual Report.
A certificate from the auditors of the Company regarding compliance
with corporate governance norms stipulated in Clause 49 of the Listing
Agreement is annexed to the Report on corporate governance.
The Company has in place a Code of Conduct for its board members and
senior management team, who have affirmed compliance thereto. The said
code of conduct has been posted on the Companys website.
Acknowledgement
Your Directors take this opportunity to thank all the Government
Agencies, members, investors, customers, vendors, viewers, bankers,
Financial Institutions, who through their co-operation and continuous
support have helped in your Companys progress. Your Directors would
like to express their sincere thanks to the Film Producers Council,
Distributors Associations and various other agencies associated with
this Industry and place on record the support extended by them.
Your Directors also place on record their appreciation to all the
employees for their commendable contribution at various levels.
On behalf of the Board of Directors of
Creative Eye Limited
Mumbai Dheeraj Kumar
24th May 2010 Chairman & Managing Director