I am pleased to inform you that in the Year 2005-06 the Company has
come out of the red and earned a net profit of Rs. 202.20 lacs on total
income of Rs. 2124.37 lacs. The company has also rewarded the
shareholder with a maiden dividend of 10% on Equity Shares.
In my last years communication to you I had indicated the companys
vision to become a major player in the field of dealing in Intellectual
Property Rights (IPFt) of commercial films. I am happy to inform you
that we have made significant progress in implementing this vision and
are now actively involved in the following areas:
1. Dealing in World Satelite Rights of Films
2. Dealing in Video Rights of Films
3. Dealing in Story Rights of Films
4. Dealing in Negative Rights of Films
5. Dealing in Home Cable Rights of Films
6. Dealing in Terrestrial Rights of Films for Door Darshan
The company is also entering the field of film production in Hindi &
Tamil languages. We have already identified few projects and are at
present involved in negotiations with leading directors and artists.
The company is expecting to launch its films in Hindi & Tamil very
shortly. Barring unforeseen circumstances, the first film under the
companys banner of BABA FILMS will be released in the first half of
calendar year 2007.
We are also planning to make a foray into production of television
softwares and are currently engaged in advanced stage of negotiation
with various content writers for the same.
The activity of construction is yet to take off and the company is
waiting for right opportunity to commence the said business.
As regards the companys post production studio, as indicated in my
last years communication to you, the company does not see much future
in the said business in view of stiff competition, heavy investment
reuired in equipment, high rate of obsolescence and high rate of
attrition of staff. The post production activity will not be among the
companys priority for future growth.
With the emphasis on dealing in IPR, film production and television
software production the company will be moving away from post
production activity and emerge as a leading producer of films and
television serials and service/content provider to satellite channels
and home video industry. To achieve the targeted growth, the company
has set up the following divisions :
BABA FILMS-Hindi and Tamil Film Production
BABA HOME VIDEO-Dealing in various Rights of Films
BABA TELEFILMS-Production of Television Software
GALAXY MULTIMEDIA-Post Production Services
I have no doubt that there are great opportunities for the company to
exploit in the entertainment industry and your company is well capable
of capitalizing on these opportunities. I am fully confident that with
the support of the shareholders, hard work of companys employees and
proper road map for growth, the company will be able to achieve its
ultimate objective of enhancing the stake holders value.
Chairman & Managing Director
Date : 30th June, 2006