Dear Member,
 
 The Directors have pleasure in presenting the 10th Annual Report and
 the Audited Accounts for the year ended 31st March, 2011.
 
 FINANCIAL RESULTS
 
 The highlights of the financial results are as under:
 
                                                 (Amount in Rs.)
 
                                         Year ended        Year ended
                                    (6 Months ended  (18 Months ended
                                        31.3.2011 )       30.9.2010 ) 
 
 Particulars                              2010-2011         2009-2010
 
 Income from Operations                   820557399        3372334278
 
 Profit Before Depreciation & Tax        (129047800)        556801154
 
 Less: Depreciation                         5017836          14545455
 
 Profit Before Tax                       (134065636)        542255699
 
 Less: Provision for Tax & 
 adjustment earlier                       (46928788)        179214480
 
 Profit After Tax                         (87136848)        363041219
 
 Surplus B/ F from Previous Year          773196248         429451767
 
 Total profit available for distribution  686059400         792492986
 
 Balance in Profit & Loss Account         686059400         773196248
 
 OPERATIONS
 
 The Current Accounting Year comprising of 6 months period commencing
 from 1st October 2010 to 31.03.2011.
 
 During the year the company has released home production films titled
 Golmaal 3 on 5th November 2010, directed by Rohit Shetty starring
 Ajay Devgan, Tusshar Kapoor, Kareena Kapoor, Arshad Warsi etc.,
 
 The operations for the year are adversely affected due to increase in
 Direct Operational Expenses, as a result of which the Company has
 suffered a loss during the year.
 
 The Company has successfully completed production of RUN BHOLA RUN,
 the genre of which is comedy, directed by Neeraj Vora starring Govinda,
 Ameesha Patel, Celina Jaitley, Tusshar Kapoor etc.  and ROCKSTAR, the
 genre of which is musical romantic drama film, directed by Imtiaz Ali
 starring Ranbir Kapoor, Nargis Fakhri & others. These films are ready
 for release during this year and are expected to lure the entire
 audiences spread across the globe.
 
 Your Company continues to pursue the completion of ongoing projects to
 achieve sustainable and a balanced profitable growth.
 
 DIVIDEND
 
 In view of losses the Board of Directors has not recommended dividend
 for the year ended 31st March, 2011.
 
 DEPOSITS
 
 Your Company has not accepted any Deposits within the meaning of
 Section 58A of Companies Act, 1956 and Rules made there under from the
 public or it employees during the year under review.
 
 FINANCE
 
 The Secured Loan has reduced during the year from Rs.146.96 Crores to
 Rs. 115.90 Crores mainly on account of reduction in film project loans
 availed for the film already released, as the loan for film projects
 are self liquidating in nature.
 
 The Unsecured Loan has increased during the year from Rs.167.68 Crores
 to Rs. 193.57 Crores as the Promoters of the Company have infused money
 into the Company in the form of Unsecured Loan.
 
 The loan amount due but not paid for an amount of Rs. 7.77 Crores as on
 the date of Balance Sheet of March 31, 2011 will be paid in full during
 the month of June 2011.
 
 The Other Income for the year for an amount of Rs. 17.18 Crores mainly
 comprising of Interest charged to the subsidiary Company.
 
 INSURANCE
 
 All the properties of your Company like Fixed Assets, including Office
 Premises, Furniture & Fixtures are adequately insured. In addition to
 the Company properties, the Company has insured its Key Managerial
 Personnel.
 
 All film productions on hand are also adequately insured.
 
 DIRECTORS
 
 In accordance with the requirements of the Companies Act, 1956, Mr.
 Dhilin H. Mehta, Mr. Dhaval V.  Jatania and Mr. Chandrakant K. Sachde,
 liable to retire by rotation at the conclusion of the forthcoming
 Annual General Meeting and, being eligible, offered themselves for
 re-appointment.
 
 AUDITORS
 
 The present Auditors of the Company M/s. Shah Shah & Shah, Chartered
 Accountants, Mumbai, will retire at the conclusion of ensuing Annual
 General Meeting and being eligible; offer, themselves for re-
 appointment to hold the office till the conclusion of next Annual
 General Meeting.
 
 They have submitted certificate for their eligibility for reappointment
 under section 224(1B) of the Companies Act, 1956.
 
 The Auditors have confirmed that they have subjected themselves to the
 peer review process of the institute of Chartered Accountants of India
 (ICAI) and holds a valid certificate issued by the Peer Review Board of
 the ICAI.
 
 EMPLOYEES
 
 None of the employees of the Company was paid remuneration of
 Rs.60,00,000/- p.a. or more for the year or Rs. 5,00,000/- p.m. or more
 and hence the information required under section 217 (2-A) of the
 Companies (Particulars of Employees) Rules, 1975 is not required to be
 given.
 
 CONSOLIDATION OF ACCOUNTS:
 
 The Company has four non material Wholly Owned Subsidiaries in India
 and one Wholly Owned Subsidiary abroad.
 
 The audited Consolidated Accounts and Cash Flow Statements, comprising
 of the Company and its all subsidiary Companies appear in this Annual
 Report together with the Auditors'' Report on the consolidated Accounts.
 The Consolidated Accounts have been prepared in accordance with the
 Accounting Standard prescribed by the Institute of Chartered Accountant
 of India.
 
 Pursuant to General Circular No 2/2011 file no 51/12/2007-CL-III dated
 February 8, 2011, issued by the Ministry of Company Affairs giving
 directions under section 212(8) of the Companies Act, 1956 granting
 general exemption from attaching the financials along with the
 Directors Report and Auditors Report of the Subsidiary Companies to the
 financials of the holding Company on fulfillment of certain conditions.
 In compliance with the said Circular of the Ministry of Company
 Affairs, the Company has attached a summary of the Financial Statements
 of each of the Subsidiary Companies.
 
 As per Clause 32 of the Listing Agreement the Consolidated Financial
 Statements of the Company with its Subsidiaries form part of the Annual
 Report. The Copies of the Audited Annual Accounts of the Company''s
 Subsidiaries and other related documents can also be sought by any
 members of the Company or its Subsidiaries on making a written request
 to the Company Secretary in this regard. The Annual Accounts of the
 Subsidiary Companies are also available for inspection by any member at
 the Company''s and/or the concerned Subsidiaries'' registered office
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 Pursuant to Section 217 (2AA) of the Companies Act, 1956 your Directors
 confirm that:
 
 I.  In the preparation of annual accounts, the applicable accounting
 standards have been followed.
 
 II.  That they 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 year (6 months).
 
 III.  Proper and sufficient care has been taken for the maintenance of
 adequate accounting records in accordance with the provision of the
 Companies Act, 1956 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 basis.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, AND FOREIGN EXCHANGE
 EARNING AND OUT GO
 
 Information as per 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.
 
 FOREIGN EXCHANGE EARNING & OUTGO                         Rs.
 
                       Current Year (6 months) Previous Year (18 Months)
 
                          1.10.10 to 31.03.11     01.04.09 to 30.09.10
 
 Earnings                               0.00            29,64,505.00
 
                                44,65,312.00          8,57,13,380.00
 Outgoings
 
 CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION AND ANALYSIS REPORTS
 
 As required by the Clause 49 of the Listing Agreement entered into with
 the Stock Exchanges, a detailed Report on Corporate Governance, along
 with the certificate of the Statutory Auditor, of the Company, is
 attached elsewhere in this Annual Report.
 
 The Company is in full compliance with the requirements and disclosures
 that have to be made in this regard.
 
 The Management Discussion and Analysis Report also appears elsewhere in
 this Annual Report, and both the aforesaid Reports are incorporated for
 reference herein.
 
 The Board of Directors of the Company has adopted a Code of Conduct and
 posted the same on the Web site. The Directors and Senior Management
 Personnel have affirmed their compliance with the said code.
 
 AUDIT COMMITTEE
 
 The Audit Committee has been constituted by the Company pursuant to
 Section 292(A) of the Companies Act, 1956 and under Clause 49 of the
 Listing Agreement.
 
 APPRECIATION
 
 The Board of Directors wishes to place on record their sincere
 appreciation of the continued support and confidence in the Company
 from its Shareholders, FCCB Holders Suppliers, Bankers to the Company
 and financial institutions, and all other business associates, for
 their support and confidence reposed in the Company.
 
 The Management takes this opportunity to express its special gratitude
 and appreciation to all Actors and Actresses, Directors and other
 Associates involved in film production and releases of the same.
 
                                      For and on behalf of the Board
 
                                                                Sd/-
 
 Place : Mumbai
 
                                                      Dhilin H Mehta
 
 Dated :- 27.05.2011                                      (Chairman)