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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 digitise 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 smartphones and tablets and other gadgets. Today, more than 10,000 tracks from our collection have been digitised. 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. Earning 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 Saif 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 KI 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 digitisation 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.
Kumar S. Taurani
Chairman and Managing Director