The directors take pleasure in presenting the Annual Report and the
 Audited Accounts of the company for the period ended 31st March, 2010.
 
 FINANCIAL RESULTS
 
                                                     ( Rs. in lac)
                                           Year Ended        Year Ended
                                     31st March, 2010  31st March, 2009
 
 Total Sales/Income                          22817.60          19210.15
 
 Total Expenditure                           17991.10          14748.49
 
 Profit before Depreciation                   4826.50           4461.66
 
 Depreciation                                   18.39             15.45
 
 Interest                                       00.81             65.26
 
 Profit before Taxation                       4807.30           4380.95
 
 Provision for Taxation                         74.57            432.41
 
 Deferred Tax                                    1.03              1.12
 
 Profit available for appropriations          4733.76           3949.66
 
 Appropriations :
 
 Provision for Bad & Doubtful Debts           1809.24                -
 
 Proposed dividend                             191.41            191.41
 
 Tax (including cess) on dividend               32.53             32.53
 
 Transfer to General Reserve                   473.38            438.09
 
 Balance carried to Balance Sheet             2227.20           3287.63
 
 
 
 FINANCIAL PERFORMANCE
 
 Your company achieved a turnover of Rs. 228.17 crore against Rs. 192.10
 crore during the previous year showing an increase of 18.78%. The
 profit after tax (PAT) of CDI grew by 19.82% to Rs. 47.33 crore over
 fiscal 2008-09. The profit before tax (PBT) increased by 9.73% to Rs.
 48.07 crore. The company recorded earnings per share (EPS) Rs. 49.45 as
 compared to Rs. 41.27 last year, higher by 19.82% (annualized).
 
 DIVIDEND
 
 Your directors are pleased to recommend dividend @ Rs.2/- per share for
 the year ended 31st March, 2010. This, if approved at the annual
 general meeting will absorb an amount of Rs.191.41 lac.
 
 OPERATIONS AND FUTURE PROSPECTS
 
 Compact Disc India Limited (CDI) is an existing profit making company
 engaged in multimedia and entertainment production in India. Presently
 CDI is India’s leading integrated media and entetainment company with
 prime focus on Animation Outsourcing and Production. With a phenomenal
 growth of over 345% in just 5 years, CDI is fast emerging as Asia’s
 undisputed leader in the animation film industry.
 
 The company is anticipating significant growth in its business and with
 the growing business it needs to set-up Pre-Visualization Studios at
 Los Angeles, London and Singapore. All existing business from
 affiliates will be consolidated in Chandigarh by the end of this year.
 CDI will also be holding company for all overseas subsidiaries. These
 subsidiaries will be serviced by establishing marketing offices in Sao
 Paulo, Tokyo and Johannesburg.
 
 The company has engaged Grant Thornton to assist in preparing a
 Business Plan.
 
 The company has also decided to set-up five world class
 state-of-the-art Animation & Gaming Centres of Excellence at par with
 IITs, which would be the first of their kind in India. The first such
 centre at Chandigarh is already in process of commencing Animation &
 Gaming courses for engineering students to impart highest level of
 quality education from the session 2011-12.
 
 Grant Thornton has also been engaged to prepare the Business Plan for
 the education venture.
 
 DIRECTORS
 
 Mrs. Santosh Grover, Director of the company retires by rotation at the
 end of this Annual General Meeting and being eligible offers herself
 for re-appointment. Mrs. Rashmee Seengal has resigned from the post of
 whole time director, however she will remain as director on the Board.
 The Board of Directors has appointed Mr. Kanad Kshayap and Mr. Anil
 Kumar as additional directors of the company w.e.f. 15.05.2010, who
 will cease to be directors at the conclusion of this Annual General
 Meeting pursuant to the provisions of Section 260 of the Companies Act,
 1956. Mr Kanad Kashyap is not interested in reappointment. Company has
 received notice from a member of the company u/s 257 alongwith
 requisite deposit proposing the name of Mr. Anil Kumar for appointment
 as director. Board recommend his appointment.
 
 PREFERENTIAL ALLOTMENT
 
 The company has issued 14,00,000 Convertible Warrants of Rs. 10/- each
 at a price of Rs. 100/- per warrant on 18.12.2008, on preferential
 basis. Each warrant was convertible into one equity share of Rs. 10/-
 each to be issued on a premium of Rs. 90/- per share, within 18 months
 from the date of allotment at the option of the allottee. The allottee
 has not opted for conversion of warrants into equity shares of the
 company within 18 months from the date of allotment and has not
 deposited the balance amount. As such the application money of Rs.
 1,40,00,000/- received from the allottee is forfeited pursuant to the
 provisions of Securities & Exchange Board of India (Disclosure and
 Investors Protection) Guidelines 2000 and in terms of allotment of
 warrants.
 
 CORPORATE GOVERNANCE
 
 The company has complied with the mandatory provisions of the Corporate
 Governance as prscribed in the Listing Agreement with the Stock
 Exchanges. A separate report on Corporate Governance is included as a
 part of the Directors Report with the Auditors Certificate on its
 compliance.
 
 AUDITORS
 
 Suresh Goyal & Associates, Chartered Accountants, Chandigarh, Statutory
 Auditors of the company, retire at the conclusion of the ensuing Annual
 General Meeting and being eligible offer themselves for re-appointment
 as statutory auditors of the company.
 
 SUBSIDIARY COMPANY
 
 The statement of the holding companys interest in Seengal Animation
 Pvt. Ltd., the subsidiary company is attached to the report and
 accounts of the company.
 
 CONSOLIDATED FINANCIAL STATEMENT
 
 The duly audited financial statements as required under the Accounting
 Standard 21 and 27 and provisions of clause 32 of Listing Agreement
 have been prepared after considering the audited financial statement of
 your companys subsidiary and appear in the Annual Report of company
 for the year 2009-10.
 
 DIRECTORS’ RESPONSIBILITY STATEMENT
 
 Pursuant to the requirement under section 217(2AA) of the Companies
 Act, 1956 with respect to Directors’ Responsibility Statement, it is
 hereby confirmed:
 
 a) That in preparation of the annual accounts for the financial year
 ended 31st March, 2010, the applicable accounting standards had been
 followed.
 
 b) That the directors had selected such accounting policies and applied
 them consistently and made judgments and estimates that were 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 the year under review.
 
 c) That 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
 irregularities.
 
 d) That the directors had prepared the accounts for the financial year
 ended 31st March, 2010 on a ‘going concern’ basis.
 
 FIXED DEPOSITS
 
 The company has not raised any fixed deposits during the year.
 
 PARTICULARS REGARDING ENERGY CONSERVATION, TECHNOLOGY ABSORPTION ETC.
 
 Since the company is not a major energy-consuming unit, particulars
 regarding conservation of energy etc. as prescribed under section
 217(1) (e) of the Companies Act, 1956 are not applicable to the
 company. As the company has not absorbed any technology, research and
 development etc, the particulars regarding technology absorption,
 innovation and research & development are not applicable.
 
 PARTICULARS OF EMPLOYEES
 
 Statement of employees whose particulars are required to be given under
 section 217(2A) of the Companies Act, 1956 read with the Companies
 (Particulars of Employees) Rules 1975, is annexed.
 
 RELATED PARTY TRANSACTIONS
 
 A statement of related party transactions pursuant to Accounting
 Standards 18 form a part of this Annual Report.
 
 PERSONNEL AND INDUSTRIAL RELATIONS
 
 The management and employees relations remained cordial throughout the
 year under report.
 
 ACKNOWLEDGEMENT
 
 Your directors wish to place on record their appreciation for the
 continued support,encouragement and co-operation extended by State and
 Central Government Agencies, Companys Bankers, Business Associates,
 Esteemed Customers and Shareholders.
 
 Your directors also record their appreciation for the dedicated
 services rendered by all ranks of the companys personnel.
 
                            For and on behalf of the Board of Directors
  
                                                    Sd/- 
 Place : Chandigarh                            (SURESH KUMAR) 
 Date : July 26, 2010                 Chairman and Managing Director