Raconteur Global Resources Ltd Management Discussions

The Management is pleased to present below its analysis on the performance of the Company for the Fiscal Year ended March 31, 2022.

a) Industry Overview:

The global economy is progressively putting the COVID-19 behind it. In CY 2021, global economy delivered 6.1% year-overyear growth, reflecting a strong recovery from -3.1% decline in CY 2020. The commencement of the vaccine rollout by the end of CY 2020, as well as the gradual lifting of lockdown restrictions in many countries, sparked a global economic recovery, which was aided by massive fiscal stimulus from governments and central banks in some countries

Global trade growth remained strong in 2021, with the value of global commerce increasing in each quarter. The expansion of trade was not restricted to products. Through 2021, service trade increased significantly, eventually reaching prepandemic levels in Q4 2021. Overall, global commerce hit a new high of almost US$ 28.5 trillion in 2021, up approximately 25% from 2020 and up about 13% from the pre-pandemic level of 2019.

Outlook

CY 2022, global economy is projected to continue with its post pandemic recovery and grow at 3.6%, as per the IMF. Economic activity is expected to return to normalcy across most major economies. However, rising energy and food prices have restricted the ability of Governments and central banks to continue with their accommodative stance and the focus has now shifted to reining in inflation. As a results, interest rates have started to rise in advanced economies as well as in developing economies and more aggressive responses are expected going forward. Global trade has shown a strong but uneven recovery. After a sharp contraction of 8.1% in 2020, trade in goods and services is projected to expand by 9.4% in 2021 and 5.7% in 2022.

Infrastructure spending plans and renewable energy expenditures, such as solar and wind power, energy storage, and electric vehicles, have boosted demand forecasts. Furthermore, robust multilateral policy efforts, as well as vaccine deployment (including booster shots), and international liquidity, are likely to improve global economic prospects.

After a second wave of COVID-19 infections early last year, which negatively impacted activity and took a toll on individuals, Indias economy experienced a swift revival. With a quick vaccination programme roll-out and government support, India was able to contain the harm caused by the COVID-19s third wave. Upticks in a variety of metrics, such as the mobility index, direct tax revenues, increasing GST collections and electricity demand, indicate that the economy is growing. The IMF projects GDP growth of 8.9% in FY 2021-22 and 8.2% percent in FY 2022-23, making India one of the fastest-growing economies globally.

The Government of Indias focus continues to remain on normalising economic operations, as well as the rapid rollout of vaccination. Domestic consumption growth is expected to pick up after Q2 of CY 2022, given around 80% of population will be fully vaccinated by then. This could help boost private consumption, which is anticipated to rise by more than 10% this year. Investment rebounded substantially in 2021, increasing by more than 16%, and is predicted to rise by another 7% in 2022. Broad vaccine coverage including roll out of booster doses, gains from supply-side reforms, regulatory ease, strong exports growth, improvement in rail and road infrastructure and the availability of fiscal space to ramp up capital spending will aid in GDP growth.

The approval of Production Linked Schemes for 14 important sectors will also aid India in attracting investments, bolstering its position as the worlds fastest-growing emerging market. Aside from these variables, Indias economic story is expected to be driven in the near future by a favourable young demography and steady urbanisation.

Media & Entertainment industry and specifically the cinema & multiplex industry is now again gaining traction with the opening of Malls and theatres as the severity of the pandemic recedes. The Indian M&E industry increased 16.4% in 2021 to Rs. 1.61 trillion, still 11% below pre-pandemic 2019 levels. Television remained the largest segment, followed by digital media and then print.

Globally film industry had a difficult year. Business picked up in the second part of the fiscal year as a result of the global immunization drive and proactive government measures. In comparison to other developed and developing countries, Indias film exhibition industry is severely under screened. Furthermore, the favourable demographic mix and increase in discretionary spending augur well for the multiplex industrys sustained expansion.

Box office momentum to continue in the near term. Footfalls returned quickly to 60% of pre-COVID levels by the end of Q3 FY 2021-22, owing to a slate of big-budget films that outperformed expectations in terms of box office receipts. The 3rd wave of COVID-19 had a short-term influence on the performance, lasting about 6-7 weeks. Exhibitors growing momentum is expected to continue beyond March 2022.

Rise of OTT platforms

The OTT platforms saw a decent rise in the last two years, owing to the pandemic. The exhibition sector was severely harmed by the several months of shutdown, staggered opening of cinema halls with varying capacity caps, delays in obtaining approval for 100% occupancy in certain key states, and a lack of new releases. As a result, some films (from low to mid-budget) had chosen direct-to-OTT distribution since it allows film makers to monetise their inventory at an acceptable return on investment. Though, some large blockbuster films like Sooryavanshi, 83 etc. (which were scheduled to debut in 2020) waited for almost 18+ months for an opportunity to release on the big screen.

India is the worlds largest film producer, the worlds largest film market in terms of ticket sales, and the fifth-largest box office market in terms of revenue in 2020.

The performance of filmed entertainment market was weak in 2021 due to lockdowns and restrictions on exhibition and cinema operations across states. Despite that, more than 750 films were released in 2021, compared to only 441 in 2020. This number is still about half of 2019 levels. The value of digital rights doubled to Rs 40 billion from 2019. Due to a lack of theatrical releases and softening prices, broadcast rights did not expand this year, and in-cinema advertising continued to decline. The Indian Bollywood film industry, valued at $2 billion in 2016, is projected to reach a size of $2.7 billion by 2023, after dropping to less than $1 billion in 2020.

Opportunities

India has over ~9,500 screens for a population of over 130 Crore. The screen density stands at ~7 per million versus ~125 per million in the USA and ~40 per million in China. Despite producing the largest number of films globally in more than ~20 languages, the screen density in India is extremely low and only ~37.4 Crore people of the total population have access to Cinemas. This significantly under-penetrated market offers a huge potential of adding new screens and will make cinemas more accessible to a larger population of the country. This screen addition will provide opportunities to enhance the in-cinema advertising and digital cinema services.

The Global Media and Entertainment market expected to grow to around $2.6 trillion by 2023 as against $2.2 trillion in 2019. The sector is witnessing a resurgence as convergence is taking place within the media segment itself, as providers and distributors link up with one another in unprecedented and unexpected ways. The distinctions among varieties of media are collapsing and Companies that once offered only technology and distribution are moving into content and vice versa.

The Media & Entertainment industry is in the business of providing creative content through the adoption of latest technology coupled with consumer demands. By its inherent nature, the industry is largely dependent on factors such as markets, cultures, languages, and consumer segments. Technological advancements and change in individuals outlook towards life have greatly affected content production, demand and consumption as it has evolved over the years.

Its a period where consumers not only demand what they like but also, they select the format they wish to view it. There is a growing dependency on digital media in many developed and developing countries. In todays fast-moving generation, the media and entertainment companies are increasing working hard to reach customers through their content. While television and radio play its part as traditional mediums, having an innovative technology backed digital platform is what most companies vouch for. With the launch of digital platforms, viewers get access to consume their information on their personal schedules.

The year ahead looks promising as there are possibly exciting changes that are going to lead the M&E industry with new trends coupled with innovative technologies that create better opportunities for the growth of global Media & Entertainment industry. Video streaming, cord-cutting, personalized content and advertising and data privacy are expected to shape the world along with the launch of fifth-generation wireless technology that will be providing a host of new opportunities across Media & Entertainment industry.

Government Initiatives

The Telecom Regulatory Authority of India (TRAI) is set to approach the Ministry of Information and Broadcasting, Government of India, with a request to Fastrack the recommendations on broadcasting, in an attempt to boost reforms in the broadcasting sector. The Government of India has agreed to set up National Centre of Excellence for Animation, Gaming, Visual Effects and Comics industry in Mumbai. The Indian and Canadian Government have signed an audio-visual coproduction deal to enable producers from both the countries exchange and explore their culture and creativity, respectively.

The Government of India has supported M&E industrys growth by taking various initiatives such as digitising the cable distribution sector to attract greater institutional funding, increasing FDI limit from 74 per cent to 100 per cent in cable and DTH satellite platforms, and granting industry status to the film industry for easy access to institutional finance.

Road Ahead

Indian M&E industry is on an impressive growth path. The industry is expected to grow at a much faster rate than the global average rate.

Growth is expected in retail advertisement on the back of several players entering the food and beverages segment, E- commerce gaining more popularity in the country, and domestic companies testing out the waters. Rural region is also a potentially profitable target.

Threats:

- There continues to be increase in capacity of web series and shot video films which resulting in lack of audience in the Theater and it will ultimately result in the distribution of the films.

- However, your Company will mitigate this by targeting on the new and emerging market of short films as well as web series in near future.

Segment-wise or product-wise performance:

- The company is primarily engaged in the distribution of regional films which includes Tamil, Telugu and Malayalam which constitute a single reportable segment.

Outlook:

- The Telecom Regulatory Authority of India (TRAI) is set to approach the Ministry of Information and Broadcasting, Government of India, with a request to Fastrack the recommendations on broadcasting, in an attempt to boost reforms in the broadcasting sector. Your Companys business continued to perform well steered by strong focus on high growth specialty segments. While roll-out of the GST impacted operations across the industry, the Companys readiness enabled it to transition seamlessly to the new tax regime.

Risks and concerns:

- The Company being a distributor of south Indian movies is always exposed to the general risks such as government regulations and policies, statutory compliances, etc. The Company from time to time identifies the risk and has put in its place appropriate measures for mitigating such risks.

Internal control systems and their adequacy:

- Your Company has in place adequate internal control systems commensurate with size and nature of its operations. Internal control processes which consist of adopting appropriate management systems and implementing them are followed. The Company has a qualified Audit Committee, independent Statutory Auditors and also Internal Auditors who submit reports periodically which are reviewed and acted upon.

Material developments in Human Resources / Industrial Relations front, including number of people employed:

- Your Company is giving special attention to Human Resources/Industrial relations development. Industrial relations remained cordial throughout the year and there were no incidences of strike, lock out etc. Total 8 employees are on the Companys payroll as on March 31 2022. The working atmospheres for all the employees are very favorable and suitable systems are in place for optimum working efficiency of all the employees.

On behalf of the Board of Directors,	On behalf of the Board of Directors,
For Ganesh Films India Limited	For Ganesh Films India Limited
Sd/-	Sd/-
NambiRajan Yadav	Jayalakshmi Nambirajan Yadav
Chairman & Managing Director	Director
DIN:06533729	DIN:08104125
Place: Mumbai	Place: Mumbai
Date: September 05, 2022	Date: September 05, 2022