Bright Outdoor Media Ltd Management Discussions

Management Discussion & Analysis Report

MANAGEMENT DISCUSSION & ANALYSIS REPORT

1. INTRODUCTION:

Our company was originally incorporated as a Private Limited Company under the name “Bright Outdoor Media Private Limited” under the provisions of the Companies Act, 1956 vide Certificate of Incorporation issued by the Assistant Registrar of Companies, Mumbai, Maharashtra on September 29, 2005. Subsequently, our Company was converted to Public Limited Company and the name of our Company was changed to “Bright Outdoor Media Limited” vide Special Resolution passed by the Shareholders at the Extra-Ordinary General Meeting of our Company held on October 24, 2022. The fresh Certificate of Incorporation consequent to conversion was issued on November 24, 2022 by the Registrar of Companies, Mumbai, Maharashtra. The Corporate Identification Number of our Company is U74300MH2005PLC156444. Further the Company was

2. INDUSTRY STRUCTURE:

India outdoor advertising market is anticipated to grow at an impressive rate during the forecast period on account of growing spending on display advertisements and growing utilization of indoor advertising for publicity in end use industries. The advertising industry is one of the most important segments of media and entertainment industry. Among its types, outdoor advertising has been one of the fastest-growing segments in the advertising space of India. It represents a high potential opportunity for outdoor media advertisers as brand owners tend to spend a great fortune over advertising and brand promotion as this method ensures a far greater consumer reach. Also, the Indian government provides remarkable support to the advertising industry. The improving market sentiments, supportive policies by Reserve Bank of India and the opening of newly licensed banks in India is opening doors to various opportunities for advertising expenditure companies in the financial sector.

3. INVESTMENTS/ DEVELOPMENTS:

From April 2000-March 2023, Foreign Direct Investment (FDI) equity inflows stood at US$ 9,167.1081 million according to the data released by Department for Promotion of Industry and Internal Trade (DPIIT).

4. OPPORTUNITIES AND THREATS:

Strength:

1. Accreditation with various awards.

2. Own Inventory of Hoardings.

3. Experience of our Promoters and senior management team

4. Customer Satisfaction

5. Repeatative Customers

Opportunities:

Vast Industrial Presence in both Public and Private Sectors Huge demand for Domestic services Avail of Low-cost, Skilled Human Resources.

Proactive government continued thrust on reforms- Further liberalization under process.

Threats:

We operate in a competitive atmosphere. Some of our competitors may have greater resources than those available to us. While product quality, brand value, distribution network, etc are key factors in client decisions among competitors, however, price is the deciding factor in most cases. We face fair competition from both organized and unorganized players in the market. We believe that our experience in this business and quality assurance will be key to overcome competition posed by such organized and unorganized players. Although, a competitive market, there are not enough number of competitors offering services similar to us. We believe that we are able to compete effectively in the market with our quality of services and our reputation. We believe that the principal factors affecting competition in our business include client relationships, reputation, and the relative quality and price of the services.

5. SEGMENT WISE OR PRODUCT-WISE PERFORMANCE:

Our Company is engaged in the business of providing advertising services offering various range of advertising media services consisting of Out of Home (OOH) media services. Our array of service hoardings include Railway boards, Railway panels, Transfer stickers, Cinema slides, Promos, full train, Bus panels, Full Bus painting, Mobile sign truck, Kiosks, Traffic Booth, Toll Naka, Gantry and Vinyl. Apart from Out-of- Home (OOH) Advertising and providing various novel communication solutions to clients our Company also offers services assuring multicultural and ethnic Outdoor Advertising campaigns that engage audiences and achieve impact, for every creative need, idea and budget.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has an effective and reliable internal control system commensurate with the size of its operations. At the same time, it adheres to local statutory requirements for orderly and efficient conduct of business, safeguarding of a ssets, the detection a nd prevention of frauds and errors, adequacy a nd completeness of accounting records and timely preparation of reliable financial information. The efficacy of the internal checks and control systems is validated by self-audits and internal as well as statutory auditors.

7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Share Capital: During the year under review, the Company has increased Paid-up Share capital of Company as per details mentioned below:

Sr.	Date of Allotment	Nature	of	No.	of	Equity Shares	Cumulative No. of Equity
No.		allotment		allotted			Shares
1.	March 21, 2023	IPO			38,00,000		1

Reserves and Surplus: The Reserve and Surplus of Company is Rs. 8,524.98 Lakhs as on period ended on 31st March, 2023.

Total Income: The Company has earned total Income Rs. 9194.47 Lakhs as on period ended on 31st March, 2023.

8. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

Your Company follows a policy of building strong teams of talented professionals. People remain the most valuable asset of your Company. The Company recognizes people as its most valuable asset and the Company has kept a sharp focus on Employee Engagement. The Companys Human Resources is commensurate with the size, nature and operations of the Company.

Description	As at March 31, 2023	As at March 31, 2022	Variance	Remark
Current Ratio	2.74	2	.18	2 5.55 The variance is on a raised through IPO Proceeds which were deposited in the escrow account which form a part of current assets which were utilised or returned in a later stage as the IPO allotment had taken place in the last week of March 2023.
Interest covering Ratio	4.37	2.19	99.53	The sales of the company is back to pre covid levels and a lso various other factor driving growth of the company leading to increased in EBITA.
Operating Profit Ratio	13.18	1	2.64	4.28 The sales of the company is back covid levels and a lso various other factor driving growth of the company leading to increase in the operating profit.
Debt-Equity Ratio	0.34	1.11	-69.50	The deviation is on a ccount of utilisation of IPO proceeds for reducing the debt of the company which was a part of prospects of IPO.
Inventory Turnover Ratio	2.42	1.21	99.73	The variance on account of inceased in sale as well as purchases
Trade Receivables Turnover Ratio	2.23	1.29	72.32	The sales of the company is back to pre covid levels and a lso various other factor driving growth of the company leading to increased in the debtors
Net Profit Ratio	0.08	0	.05	5 1.04 The sales of the company covid levels and a lso various other factor driving growth of the company leading to increase in the profitability.

10. FORWARD-LOOKING STATEMENT:

Certain statements made in the Management Discussion and Analysis Report relating to the Companys objectives, projections, outlook, expectations, estimates, and others may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, whether expressed or implied. Several factors could make a significant difference to our operations. These include climatic and economic conditions affecting demand and supply, government regulations and taxation, any epidemic or pandemic, and natural calamities over which we do not have any direct/indirect control.

For and on behalf of the Board Bright Outdoor Media Limited

Sd/-

Yogesh Jiwanlal Lakhani Chairman and Managing Director DIN 00845616

Place: Mumbai Date: 06-09-2023