The directors are pleased to present their report on the business and
 operations of your company for the year ended 30th June 2011.
 
 Results of the operations
 
 Your Company''s performance during the year has been good. The total
 revenues were Rs 12693 crores as against the previous years'' figures of
 Rs.115 crores. The operating profits were at Rs 1947 crores as against
 last years'' Rs.12.20 crores. The profit after tax was Rs 1.94 crores
 against Rs.7.42 crores last year.
 
 Dividend
 
 Your directors recommend a dividend of 8% on 1,47,20,000 equity shares
 of RS.10/- each for the financial year ended 30th June 2011. The
 dividend, if approved by the shareholders in the forthcoming Annual
 General Meeting, will be paid to the holders of the above shares whose
 names appear on the Register of Members of the Company as on 30th
 December 2011.
 
 Business
 
 Your company is in the business of Entertainment with main focus on
 Films Distribution and Exhibition. The company owns 4 cinema theatres
 in Tamil Nadu and also has taken on lease more than 15 theatres in
 Tamil Nadu itself. The company has been successfully operating these
 theatres leveraging its long years of presence in the Film Industry.
 Your company is now, one of the few companies managing a big chain of
 owned/ leased theatres in Tamil Nadu. Your company has also distributed
 various films in Tamil during the year in some selected territories.
 
 The company plans to expand its exhibition business by increasing the
 no. of leased theatres. It also has been considering to build a
 multiplex in the outskirts of Chennai in the coming years.
 
 In the case of distribution, the company plans to distribute feature
 films - mostly Tamil and Hindi movies - on a non-risk basis for big
 companies like Gemini Film Laboratory and Eros International Media
 Limited.
 
 The company also plans to take up execute movie production work on a
 turnkey basis for a various international companies.
 
 Dematerialisation
 
 Your Company''s shares have been listed on the Bombay Stock Exchange.
 Your Company''s shares have been admitted for dematerialization by
 National Securities Depository Ltd. (NSDI.) and Central Depository
 Services (India] Ltd. (CDSL) bearing ISIN INE 828101019.
 
 Acceptance of Deposits under Sec 58A of the Companies Act, 1956
 
 During the year under review, your company has not accepted or renewed
 any deposits within the meaning of Sec 58 A of the Companies Act, 1956
 and rules made thereunder.
 
 Directors
 
 As per Article 121 of the Articles of Association, Mr, Mr. Govinda
 Prasad Dasu retires by rotation in the forthcoming Annual General
 Meeting and being eligible, offers himself for re-appointment. To
 strengthen the existing Board of Directors, Dr. Murali Manohar, has
 been inducted in the board. The board is confident that with his rich
 experience in the field of film production activities more business
 opportunities are to be generated by the company.
 
 Auditors
 
 M/s. R.P.Madhu & Co., Chartered Accountants, Statutory Auditors of the
 Company retires at the ensuing Annual General Meeting and have
 confirmed their eligibility for re-appointment. The Company has
 received a Certificate from the Auditors to the effect that their
 appointment, if made, would be within the prescribed limits under
 Section 224 (IB) of the Companies Act, 1956. The members are requested
 to appoint the Auditors and authorize the Board to fix their
 remuneration.
 
 Auditor''s Report
 
 Regarding auditors'' qualification about confirmation of balances, we
 wish to state that the company has since obtained confirmation from
 most of the parties and continues to follow up with the other parties
 from whom confirmations are yet to be obtained.
 
 CORPORATE GOVERNANCE
 
 A Report on Corporate Governance along with a certificate from M/s R P
 Madhu & Co., Chartered Accountants regarding compliances of the
 requirements of Corporate Governance is annexed herewith.
 
 MANAGEMENT DISCUSSION & ANALYSIS REPORT
 
 The report on Management Discussion & Analysis is annexed herewith.
 
 PARTICULARS AS PER SECTION 217(2A) OF COMPANIES ACT, 1956:
 
 During the year under review, none of the employees of the Company were
 in receipt of remuneration aggregating to Rs.24,00,000/- p.a or more
 for the whole of the year, if employed throughout the year, or
 Rs.2,00,000/- or more per month, in case employed for part of the year.
 Hence, there are no particulars to be annexed to this report as
 required under sec 217(2A) of the Companies Act, 1956 and the rules
 made there under.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
 EARNINGS AND OUTGO:
 
 Information pursuant to Section 217 [1) (e) of the Companies Act, 1956,
 read with the Companies (Disclosure of particulars in the Report of the
 Board of Directors) Rules, 1988 have been furnished in the annexure.
 
 ACKNOWLEDGEMENTS:
 
 The Board would like to express their gratitude for the continued
 support which the Company has received from its. Shareholders,
 Customers, Suppliers, Bankers, Statutory Authorities and all other
 business associates.
 
 The Board wishes to place on record their sincere appreciation to all
 the Company''s employees for their collective contribution to the
 Company''s improved performance.
 
                                          For & On behalf of the Board
 
 Chennai                                           Suryaraj Kumar
 
 Date: 22.07.2011                                    Chairman