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Prime Focus World and Double Negative with a Strong Pipeline – Delivering Creative Services for Some of of Upcoming Work Hollywood’S Highest Grossing films

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Prime Focus World and Double Negative with a Strong Pipeline – Delivering Creative Services for Some of of Upcoming Work Hollywood’S Highest Grossing films Ever since our inception years ago, Prime Focus has been an innovator. Never willing to accept the status quo; never content to stand still; never willing to rest on its laurels. In our early years we offered India’s first high-end post production finishing system; India’s first film scanning and recording system; India’s first Digital Intermediate service. We were the first visual effects company in India to operate a motion control rig. We brought new technologies and processes to the Indian film, advertising and broadcast industries. Then we expanded internationally. Our technology division deployed the World’s first Hybrid Cloud 'leading from the front' platform in , and we became the first company in the world to convert an entire Hollywood film from D to D. phrase In we launched the World’s largest digital media services cloud, ‘True North’, and became the . To show the way by going in advance first company to deliver a full package of visual effects and D conversion services as the exclusive partner on a major Hollywood release… from India. To play a principal or guiding role in A year later, we put together a series of ground-breaking mergers and acquisitions, aligning with . To be the first Academy Award® winning, world-renowned VFX company Double Negative; media services heavyweight Reliance MediaWorks; stereo conversion leader Gener; DAX ®, the creators of the Primetime Emmy® Award winning Digital Dailies ®; and Academy Award® winning Lowry Digital. We continue to prove our creative and technical leadership position in the global M&E industry with award wins in all areas of our business, including two consecutive Academy Awards for Double Negative. And nineteen years on from our humble beginnings we continue to break new ground, announcing a new joint venture to bring Virtual Reality to India in conjunction with VR industry leaders Digital Domain Holdings Limited. We don’t follow; we lead by example. LEADING FROM THE FRONT Ever since our inception years ago, Prime Focus has been an innovator. Never willing to accept the status quo; never content to stand still; never willing to rest on its laurels. In our early years we offered India’s first high-end post production finishing system; India’s first film scanning and recording system; India’s first Digital Intermediate service. We were the first visual effects company in India to operate a motion control rig. We brought new technologies and processes to the Indian film, advertising and broadcast industries. Then we expanded internationally. Our technology division deployed the World’s first Hybrid Cloud 'leading from the front' platform in , and we became the first company in the world to convert an entire Hollywood film from D to D. phrase In we launched the World’s largest digital media services cloud, ‘True North’, and became the . To show the way by going in advance first company to deliver a full package of visual effects and D conversion services as the exclusive partner on a major Hollywood release… from India. To play a principal or guiding role in A year later, we put together a series of ground-breaking mergers and acquisitions, aligning with . To be the first Academy Award® winning, world-renowned VFX company Double Negative; media services heavyweight Reliance MediaWorks; stereo conversion leader Gener; DAX ®, the creators of the Primetime Emmy® Award winning Digital Dailies ®; and Academy Award® winning Lowry Digital. We continue to prove our creative and technical leadership position in the global M&E industry with award wins in all areas of our business, including two consecutive Academy Awards for Double Negative. And nineteen years on from our humble beginnings we continue to break new ground, announcing a new joint venture to bring Virtual Reality to India in conjunction with VR industry leaders Digital Domain Holdings Limited. We don’t follow; we lead by example. LEADING FROM THE FRONT CONTENTS The Year At A Glance 05 Executive Chairman’s Message 07 Highlights Of The Year 09 Financial Highlights 13 Group Structure 17 Global Presence 19 Business Overview 21 International Creative Services 23 International Technology Services 31 India Film & Media Services 35 Evolving Technologies 39 Major Milestones 41 The Board 43 Managing Director’s Message 45 Corporate Information 47 Director’s Report 49 Management Discussion & Analysis 76 Report on Corporate Governance 88 Auditors’ Report on Standalone Financial Statement 100 Standalone Financial Statement 104 Auditors’ Report on Consolidated Financial Statement 138 Consolidated Financial Statement 142 Subsidiary Companies: Financial Highlights 2015-16 176 THE YEAR AT A GLANCE This year Prime Focus has delivered more films, more animation, more ads, more TV programmes and more technology services to more clients than ever before. Here’s our year in numbers. is the number of is the number of is the number of Facilities we operate Hollywood feature Bollywood feature films around the World, in films that we have that we currently have in cities delivered production is the number of . mn is the number of CG Hollywood films for is the number of hours Animated movies which we’ve delivered of content managed by that we currently bundled services (VFX & CLEARTM Stereo Conversion) have in production mn is the number of is the number of is the number of is the number of files Bollywood feature films minutes of Animated delivered this year for Hollywood feature films that we have delivered that we currently have in Content we’ve Syndication and VoD (across our VFX, DI and created this year fulfillment production EQR divisions) , is the number of Staff we is the number of have working for Prime Awards we’ve won Focus around the World 05 This year Prime Focus has delivered more films, more animation, more ads, more TV programmes and more technology services to more clients than ever before. Here’s our year in numbers. is the number of is the number of is the number of Facilities we operate Hollywood feature Bollywood feature films around the World, in films that we have that we currently have in cities delivered production is the number of . mn is the number of CG Hollywood films for is the number of hours Animated movies which we’ve delivered of content managed by that we currently bundled services (VFX & CLEARTM Stereo Conversion) have in production mn is the number of is the number of is the number of is the number of files Bollywood feature films minutes of Animated delivered this year for Hollywood feature films that we have delivered that we currently have in Content we’ve Syndication and VoD (across our VFX, DI and created this year fulfillment production EQR divisions) , is the number of Staff we is the number of have working for Prime Awards we’ve won Focus around the World EXECUTIVE CHAIRMAN’S MESSAGE From the very earliest days of Prime Focus, our mission has been clear: • to build a globally competitive business • to provide a growth platform for our people • to deliver to our customers the highest levels of service • to earn profit respectably • to be leaders in our business by harnessing creativity and challenging convention • to deliver to our shareholders a commitment to work with integrity and intelligence at all times The company has evolved beyond all recognition since those early days - from humble garage start-up in Mumbai to an international powerhouse working with the world’s leading content creators and technology companies - but our mission remains the same. And we remain determined to deliver on what we set out to do all those years ago. Every day, across our organisation, we strive to deliver work that is better than the work we delivered the day before. Every day we re-invent ourselves to better respond to the needs of our clients and the challenges of our industry. Every day we come to work re-invigorated, ready to innovate and push the boundaries of what is possible. We have established our leadership position in the media and entertainment services industry through relentless hard work and focused determination, and cemented it by winning its top awards, by working with its most esteemed and successful players, and by bringing aboard some of its most creative and sought-after talent. We have created new opportunities, opened new markets and rationalised our business, and we are beginning to capitalize on the financial advantages that we have created. Every year we see progress. Every year we become more successful. Every year we grow stronger. And as we look to the future we are confident that we have best positioned ourselves for the challenges to come. From the beginning we have never followed others – we have always forged our own path. And we continue to lead from the front. It’s in our DNA. Namit Malhotra Founder, Executive Chairman and Global CEO 07 From the very earliest days of Prime Focus, our mission has been clear: • to build a globally competitive business • to provide a growth platform for our people • to deliver to our customers the highest levels of service • to earn profit respectably • to be leaders in our business by harnessing creativity and challenging convention • to deliver to our shareholders a commitment to work with integrity and intelligence at all times The company has evolved beyond all recognition since those early days - from humble garage start-up in Mumbai to an international powerhouse working with the world’s leading content creators and technology companies - but our mission remains the same. And we remain determined to deliver on what we set out to do all those years ago. Every day, across our organisation, we strive to deliver work that is better than the work we delivered the day before.
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