BABA ARTS LIMITED
ANNUAL REPORT 2005-2006
CHAIRMAN'S REPORT
CHAIRMAN'S STATEMENT
Dear Shareholders,
I am pleased to inform you that in the Year 2005-06 the Company has come
out of the red and earned a net profit of Rs. 202.20 lacs on total income
of Rs. 2124.37 lacs. The company has also rewarded the shareholder with a
maiden dividend of 10% on Equity Shares.
In my last year's communication to you I had indicated the company's vision
to become a major player in the field of dealing in Intellectual Property
Rights (IPR) of commercial films. I am happy to inform you that we have
made significant progress in implementing this vision and are now actively
involved in the following areas:
1. Dealing in World Satelite Rights of Films
2. Dealing in Video Rights of Films
3. Dealing in Story Rights of Films
4. Dealing in Negative Rights of Films
5. Dealing in Home Cable Rights of Films
6. Dealing in Terrestrial Rights of Films for Door Darshan
The company is also entering the field of film production in Hindi & Tamil
languages. We have already identified few projects and are at present
involved in negotiations with leading directors and artists. The company is
expecting to launch its films in Hindi & Tamil very shortly. Barring
unforeseen circumstances, the first film under the company's banner of BABA
FILMS will be released in the first half of calendar year 2007.
We are also planning to make a foray into production of television
softwares and are currently engaged in advanced stage of negotiation with
various content writers for the same.
The activity of construction is yet to take off and the company is waiting
for right opportunity to commence the said business.
As regards the company's post production studio, as indicated in my last
year's communication to you, the company does not see much future in the
said business in view of stiff competition, heavy investment required in
equipment, high rate of obsolescence and high rate of attrition of staff.
The post production activity will not be among the company's priority for
future growth.
With the emphasis on dealing in I PR, film production and television
software production the company will be moving away from post production
activity and emerge as a leading producer of films and television serials
and service / content provider to satellite channels and home video
industry. To achieve the targeted growth, the company has set up the
following divisions
BABA FILMS - Hindi and Tamil Film Production
BABA HOME VIDEO - Dealing in various Rights of Films
BABATELEFILMS - Production of Television Software
GALAXY MULTIMEDIA - Post Production Services
I have no doubt that there are great opportunities for the company to
exploit in the entertainment industry and your company is well capable of
capitalizing on these opportunities. I am fully confident that with the
support of the shareholders, hard work of company's employees and proper
road map for growth, the company will be able to achieve its ultimate
objective of enhancing the stake holder's value.
Yours Sincerely
Gordhan Tanwani
Chairman & Managing Director
Date : 30th June, 2006