ANNUAL REPORT - 2001
CINEVISTA COMMUNICATIONS LTD
CHAIRMANS' SPEECH
Dear Shareholders,
A hearty welcome to the fourth annual general meeting of your company. The
Director's report and the Audited Accounts for the Year ended March 31st,
2001, have been with you or sometime now, and with your permission, I shall
take them as read.
Since we last met exactly one year back, the global economy, the Indian
economy and the media and entertainment industry in India have witnessed
significant changes.
Events over the last few weeks, as you are already well aware of, have
altered the equilibrium of the global economy and the revailing geo-
political structure. The coming times will be challenging for people and
organisations all walks of life. While the extent to which India will be
directly affected by these clanged circumstances is yet to be seen the
uncertainty regarding the extent and duration of the ongoing slowdown in
the economy has increased. Consequently, most businesses are likely to see
an erosion in margins. The weaker ones may either succumb or merge with
larger and stronger ones, leading to a greater degree of consolidation in
most industries. This is likely to happen in the media and entertainment
industry also. As such, while the times ahead will pose challenges, they
will also throw up opportunities. Your Company will be on the lookout to
recognise, identify and translate such opportunities to emerge as a larger,
stronger and more meaningful player in the media and entertainment industry
once the slowdown starts reversing itself.
The last one year has seen significant changes in the media and
entertainment industry in India. Doordarshan's dominance and commercial
viability in the broadcasting segment has been eroded. This has adversely
affected your company's working. Not only has your company had to cease
telecast of all its programmes on Doordarshan, but has also had to write
off large amounts on account of unsold inventory, and on account of Knock-
Out which had reached an advanced stage of implementation, but could not go
on air for various reasons. However, your company11as been quick to adapt
to this change and has successfully diversified its business away from
Doordarshan to the private satellite channels. Efforts are on to give
further impetus to this diversification and results of the same will be
visible in the coming times.
When we met last year, I had mentioned that your company aims to move to a
level of 7 hours of original programming per week by March, 2001, 14 hours
of original programming per week by March, 2002, and 21 hours of original
programming per week by March 2003, across various channels. I am sure,
that you will be glad to know, that despite the fact that your company has
withdrawal all its programmes from Doordarshan, it still has seven an a
half hours of original programming on air at this point in time on the
various private satellite channels, which is likely to see a further
increase in the months to come. This number would have been much higher had
Doordarshan not eroded in its commercial viability.
I had also mentioned last year about changes that the Indian film industry
is undergoing, and how your company was well poised to benefit from these
changes. You will be glad to know that your company's first feature film
Yeh Mohabbat Hai, under the banner of its subsidiary Cinevista Eagle Plus
Media Pvt. Ltd. is nearing completion and is scheduled for release in
December, 2001. Your company sees the film segment as a high growth area in
the years to come and as such your company is also working on other film
projects which will be announced soon.
Your directors sincerely thank all the employees for their commitment, hard
work, dedication and enthusiasm; all the shareholders and investors for
their confidence; and all the customers and clients for their continued
patronage.
Thanking you
Chairman