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CEO and Financial Controller's Certification

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CEO and Financial Controller's Certification Celebrating a decade of excellence of our own and co-owned ‘Intellectual properties’ and thereby enhancing our capabilities for worldwide licensing and distribution for all platforms of entertainment including FeatureFilms, TV, Home video, Publishing, Merchandising and Licensing with offices in India, Paris, Tokyo, LA, London and Ireland. DQE has established a diverse client-partner base DQ Entertainment is a leading global entertainment group consisting of over 100 major producers, licensees and in the business of animation, gaming and live action content distributors from Europe, the USA, the UK and Asian production, licensing and distribution. DQE’s pedigree is countries namely Walt Disney Animation Group – associated globally with major Intellectual Property (IP) worldwide, multiplex of Disney channels, Nickelodeon brands such as The Jungle Book, Charlie Chaplin, Peter Animation Studio Inc. USA, Electronic Arts – USA, Marvel Pan, Iron Man, Casper and many more supported by client- Comics, American Greetings, NBC Universal and BBC partnership with International and national broadcasters, Group-UK, F2-F3-F4-F5 public broadcaster-France, TF1 distributors, licensees and large independent producers TV and TF1 Enterprises - France, M6 TV and distribution, specially in Europe & the USA. France, Canal+ - France, ZDF TV & ZDF Enterprises as well as WDR TV Group – Germany, ABC Australia, We have produced or co-produced and distributed more Al Jazeera –Middle East, TVO/Tele Quebec – Canada, than 60 TV series, direct-to-home videos and feature Turner Asia including Cartoon Network, POGO etc. The films, created real time game animation for online, mobile wide spread client - partner base has enabled us to spread and next-gen console games and now diversified into our business risk. production and distribution of 3D stereoscopic animated feature films. We commenced our journey in the year 2000 and are now entering our 10th year since establishment of this group. The DQE group has evolved its integrated business model from that of pure service to co-ownership and co- production of international iconic brands with high profile partners across the globe. We are now in development Contents 36 Corporate Governance Report 45 Management Discussion & 03 Financial Highlights Analysis Report 55 Auditors’ Report on 05 Chairman’s Statement Financial Statements 58 Financials 09 Business Update Auditors’ Report on Consolidated 78 Financial Statements 19 Human Resources @ DQE 79 Consolidated Financials 23 Awards 99 Company Information 25 Board of Directors 100 29 Directors’ Report AGM Notice Report on Corporate Attendance Slip and Proxy Form 35 Social Responsibility 102 A walk down A WALK DOWN MEMORY LANE... memory lane….. ain ch ue al 2008-2010 v e h t p u ISO 9001: 2000 certification by Det Norske Veritas for high g n quality of process management i across the company v 2004-2007 o Co-production of prestigious M Establised 3D animation and brands eg. ‘Little Prince’ , gaming divisions ‘Little Nick’, ‘Pinky and Perky’, ‘Large Family’ ‘Charlie Chaplin’, Set-up 4 more Schools of Visual ‘Twisted Whiskers’, ’Tara Arts to train high-end 3D animation Duncan’, ‘Casper’, ‘Iron Man’ 2000-2003 and Gaming talents for rapid and more scaling up Service Productions namely Developed proprietary ‘Production ‘Fan Boy & Chum Chum, The Tracking’ and ‘Resource Penguins of Madagascars – 2 Management’ ERP solutions seasons for Nickelodeon. 2 seasons of Mickey Mouse Club Established 2D traditional & Awarded prestigious contracts House for Disney, USA digital animation division from world majors – ‘Mickey Mouse Club House’ from Disney in 3D Established in-house ‘Training format, ‘TAK’ from Nickelodeon, Launch of own international Center’ the first school of visual God Father/Simpsons/Medal of IP’s ‘The Jungle Book’, ‘Peter arts to train traditional, digital Honour and many game-art and Pan’ and Indian IP’s - Balkand, and rotoscopic animation talents cinematics from Electronic Arts Ravan, Omkar- all supported for scaling up by national and international DQE is the first Indian Company to broadcasters, distributors and Rolled out the animated TV win the prestigious Emmy Award licensees. series ‘Hoze Houndz and for its co-produced TV series ‘Benjamin Bear’ for Canada, ‘Tutenstein’ Listed on Bombay Stock ‘Potatoes and Dragons’ ‘Delta Exchange on March 29 2010 State’,Todd World, Jet Groove Co-production and co-ownership with a record oversubscription of of IPR’s in Television and home and many more for France, the 86.33 times entertainment started with UK, Canada and the USA international partners Listing of the equity shares of DQE plc at AIM Market of LSE 1 Annual Report 2010 DQ Entertainment (International) Ltd. DQE takes pride…. To be the first animation company to obtain ISO 9001 :2008 certification, by DNV Netherlands In being the first Asian Company to win an EMMY Award and have 16 EMMY nominations to its credit First to develop own proprietary ERP solutions for vast and complex production tracking and resource management solutions to integrate creative and technical functions directly with HR and accounts functions In being the first leading animation and entertainment company with over 3000 associates plus many free lancers in Philippines, China, Europe and USA making DQE the largest such production house in its category First company in its domain to have direct business relations with over 100 marquee clients/partners across the globe Disney trusted DQE to bring the legendary Mickey Mouse Club House productions to be produced for the first time in a new 3D Avatar To be the first company to produce several 3D stereoscopic TV series keeping abreast with the current trends in broadcast and audio visual needs globally in future TAKES PRIDE... TAKES In being the first Indian Company to create its own international iconic IP’s such as The Jungle Book, Peter Pan and many DQE more for global audiences To be recognized as one of the top animation producers worldwide under the Global Animation industry report, published by Screen Digest To be the first to unleash the power of training high-end animation and gaming as well as VFX in its own and with public-private partnerships, five schools of visual arts to 2 support rapid scaling up of capacity To be the first company in this region trusted to produce a 3D stereoscopic feature film by Warner Bros, France, Studio 37 and Fidelitie Films france with Onyx Films, France for release worldwide in 2011 Annual Report 2010 DQ Entertainment (International) Ltd. Financial Highlights F INANCIAL Financial Highlights Revenue up by 17% to INR 1,755 million (Previous year: INR 1,498 million) HIGHLIGHTS Adjusted EBIDTA up by 30% to INR 697* million (Previous year: INR 537 million)** Revenue 20000 18000 Profit before tax of INR 269 million 16000 (Previous year: INR 199 million) 14000 12000 CAGR: 39.18% Cash and cash equivalents of INR 582 million 10000 after the investments in expansion 8000 (Previous year: INR 105 million) 6000 4000 2000 * The EBIDTA figure above includes non-recur- Amount in INR lacs ring IPO expenses of INR 95.5 million. 0 2006 2007 2008 2009 2010 ** The EBIDTA figure above does not include the non-recurring gain. Profit after tax EBIDTA 3,000 7,000 6,000 2,500 5,000 2,000 4,000 CAGR: 57.37% 1,500 CAGR: 90.97% 3,000 1,000 2,000 Amount in INR lacs Amount in INR lacs 500 1,000 0 0 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 3 Annual Report 2010 DQ Entertainment (International) Ltd. HIGHLIGHTS OPERATIONAL & INANCIAL F 4 Annual Report 2010 DQ Entertainment (International) Ltd. CHAIRMAN’S STATEMENT Chairman’s Statement Dear Investors, It has been a great journey for me and my team, with a decade full of ups and downs in global economies, when DQites have stood together to create, to innovate and lead the change. We have looked at every obstacle as an opportunity to work harder, to achieve and accomplish with humility. This has been a decade of digital explosion. Increased availability of internet broadband connectivity has enhanced internet usage while 3G technology has further accelerated social networking through Facebook, Orkut, Linked-in or C Skype. You-Tube and Twitter have transformed lives like never before. The world has never been so connected as it HAIRMAN is now and we are linked far better with our markets. Companies engaged in IP creation have a better understanding of consumer needs and able to develop content better suited for their audiences We at DQE have watched the changing technical and creative landscape and have been nimble footed to embrace changes quickly or bring changes in our own technology pipeline ahead of time. A perfect example is 3D stereoscopic ’ S technology for television and feature films that we have been working on for the last 3 years. Today most of our 3D S productions are stereoscopic even for television content while the whole world is gearing up to distribute this fantastic technology to homes and theatres alike. TATEMENT Tapaas Chakravarti, CMD & CEO DQ Entertainment (International) Limited 5 Annual Report 2010 DQ Entertainment (International) Ltd. The DNA of DQE has embedded strong human value systems of brutal honesty, humility, quality at any cost, keeping promises, ethics and integrity. This has been LEVERAGING ON THE COMBINED EXPERTISE the differentiator for the company and the growth in OF DQE’S GLOBAL DEVELOPMENT AND the top line or bottom line is the effect of these deep LARGE INDIAN WORKFORCE human values and total professionalism at all levels of business practices. I believe that one of the most important differentiators of the Company has been the extraordinary talent and We love what we do, and we do what we love, and commitment of our associates. The young and dynamic it is this that brings us back each morning to help us workforce at DQE has been acknowledged worldwide fulfill our vision and promises to our client partners, for their creative abilities and dedicated team work.
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