Dear Shareholders,
 
 I am pleased to present before you Annual Report for the year 2011-12.
 The year was indeed a successful and a significant year for TIPS.
 Both the two mainstay businesses of the company, namely - music and
 films, did well in a year that saw much better content in the year
 compared to the previous year.
 
 In the music business, we continued with our drive to digitize our
 collection so that it is available across the various platforms and
 formats, ready for consumption via an array of new-age devices like the
 smart phones and tablets and other gadgets.  Today, more than 10,000
 tracks from our collection have been digitized. Our revenues from
 royalty during the year were * Rs. 34.83 Crores. The music industry is
 going through many changes like the TRAI guidelines which are affecting
 our revenues. However, we are confident that our music business is all
 set for a bigger leap as internet rentals go down making downloading of
 content cheaper, and as 4G gets launched in the country, enabling
 downloading almost instantaneously.
 
 During the year, we also took the decisive step to write off obsolete
 machinery, non-recoverable debtors and advances and thereby, cleaned up
 our balance sheet. In the film business, we released one Punjabi film
 JIHNE MERA DIL LUTIYA in the month of July 2011 and one hindi film TERE
 NAAL LOVE HO GAYA in February 2012. JIHNE MERA DIL LUTIYA was a big hit
 and completed a hat-trick of hits in Punjabi cinemas for TIPS. Today,
 the top three all time Punjabi films belong to TIPS - a proud
 achievement indeed for all of us at TIPS! The film grossed over Rs. 10
 Crores and successfully ran for 7 weeks.
 
 TERE NAAL LOVE HO GAYA was released in February 2012, coinciding with
 the wedding of the two main stars, Genelia and Ritiesh Deshmukh. The
 film was light-hearted comedy providing the trade-mark TIPS wholesome
 entertainment for the entire family. The film grossed over 25 Crores
 globally, making it one of the top hindi movies of the year.
 
 Backed by the success of both these films, the total revenue from the
 Film Production/Distribution income rose to Rs. 36.21 Crores for the
 year, compared to Rs. 29.06 Crores for the previous year.
 
 In line with its two films, TIPS also had a successful year of
 financial performance. Total revenues for the year were Rs. 77.13
 Crores against Rs. 67.24 Crores in the previous year, an increase of
 Rs. 9.89 Crores. Net profit for the year is Rs.  8.8 Crores which has
 increased from Rs. 2.98 Crores for the earlier year, indicating an
 increase of 5.82 Crores. Earnings per share (both basic and diluted) for
 the year stood at Rs. 5.52 as against Rs. 1.81 in 2010-11.
 
 Looking forward, 2012-13 is expected to be a much better year for TIPS.
 RACE2 - a sequel to the 2008 hit RACE, is in the final stages of
 production. It is a multi-starrer thriller, with a top star cast
 consisting of Said Ali Khan, John Abraham, Deepika Padukone, Anil
 Kapoor, Amisha Patel, Jacqueline. Set for release in January 2013,
 RACE2 is expected to be one of the biggest hits of the year. TIPS has
 already sold distribution rights to UTV, while marketing rights
 remain with TIPS. JAYANTAB- HAI Kl LOVE STORY is another hindi film
 that is almost complete and scheduled for release in October 2012.
 Starring Vivek Oberoi and Neha Sharma, the film is out and out a family
 entertainer.
 
 TIPS is well on its way to achieve its mission to be one of the leading
 producers of entertaining and wholesome family entertainment. The
 company is fully geared to produce 3-4 movies per year by 2013-14, and
 6 movies per year by 2016. On the music front, the company continues
 its aggressive drive to unlock value from its unmatched collection of
 25000 tracks by speeding up digitization of content and opening more
 revenue streams through cross-marketing opportunities with new partners
 and alliances.
 
 We assure of rolling more success in 2012-13.. .and beyond.
 
 Yours faithfully,
 
 Kumar S. Taurani 
 
 Chairman and Managing Director