PVR-Annual Report 2009 Deluxe-FINAL.Indd
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ANNUAL REPORT 2008-09 Designed by Nicholas Hoffland Design Printed at Thomson Press, India Good economic circumstances usually make for great team-building. Its an excellent time to assemble the best talent that wants to be part of a profitable whole. With some diligence, its not difficult to get a model act together in terms of a mix of optimal goals and objectives for individuals, the team and the organization; set up systems for open and frequent communication, peer accountability; and create a culture that appreciates and bonds the team for best results. However, even in prosperous times things are never THAT perfect… and exceptional organizations more often than not, tend to get built by less than exceptional teams. And then there are times when the economy is less than booming. The times when businesses have to take tough calls. Are these a good time for building the finest teams? The last year demonstrates resoundingly that these are indeed great times to build excellent teams and very nimble teamwork. Periods when resources aren’t available for the asking, force organizations and teams to roll up their sleeves and develop REAL PEOPLE POWER. These are times when wise organizations leave behind any misguided reluctance to focus on teams and grapple squarely with the realization that without the right teams and work methods, the organization will not effectively identify and implement new ways to survive and thrive. Resource-scarce situations force huge efficiencies. They ensure that much more is achieved with less. Flatter organization structures, greater inter-dependence… these enable a diversity of skills that deliver quick turnaround and results. These are the times when motivated people dig deep down, work across functions and really collaborate and work as teams. They group together in a highly bonded, highly trusting manner to become more flexible and infinitely more responsive. Organizations too respond and metamorphose to engage employee teams better in consultation and decision-making, which in turn create greater involvement and belonging. Working in tandem, huge quality and productivity is achieved, simply because well allied people come together in multi-disciplinary teams to make projects and missions happen. Empowered, mission-focused teams also ensure that diverse experience and learnings are rapidly shared to deal with emerging opportunities or pitfalls. These not so easy times… these red hot crucibles of adversity, these form the school of the greatest learning… these are the times when balanced individuals finally learn to balance well with each other… far better than in times when the next quarter’s positive results are more or less driven northwards by footfalls rushing in. It is to these interesting times that we are indeed grateful. For when the corner is turned, it is these journeys that will have made us stronger and infinitely more proficient… all for one, one for all, all for the organization… REAL PEOPLE POWER. Board of Directors Mr. Ajay Bijli Chairman cum Managing Director Mr. Sanjeev Kumar Joint Managing Director Mr. Sumit Chandwani Director Mr. Vikram Bakshi Director Mr. Ravi K. Sinha Director Mr. Renaud Jean Palliere Director Mr. Sanjay Khanna Director Company Secretary Mr. N.C. Gupta Auditors S.R. Batliboi & Co. Chartered Accountants Bankers Standard Chartered Bank HDFC Bank Limited Kotak Mahindra Bank Limited Subsidiaries PVR Pictures Limited PVR blu-O Entertainment Limited Contents C. R. Retail Malls (India) Private Limited Sunrise Infotainment Private Limited Registrar & Share Transfer Agents (R&TA) Karvy Computershare Private Limited (KCPL), 17-24, Vittal Rao Nagar, Madhapur, Hyderabad - 500 081 Tel. : +91-40-2342 0815-828 Fax : +91-40-2342 0814 www.kcpl.karvy.com 1. Statutory Information 1 2. Chairman’s Statement 2 3. 2008-09 : An Overview 6 Registered Office 4. Directors’ Report 34 61, Basant Lok, Vasant Vihar, New Delhi - 110057 5. Management Discussion and Analysis 41 Corporate Office 7. Report on Corporate Governance 44 Block A, 4th Floor, Building No 9, DLF Cyber City, Phase III, Gurgaon - 122002, Haryana, India 8. Standalone Financial Statements 56 9. Consolidated Financial Statements 90 10. Summarised Financial Statements of Subsidiaries 126 1 Board of Directors Mr. Ajay Bijli Chairman cum Managing Director Mr. Sanjeev Kumar Joint Managing Director Mr. Sumit Chandwani Director Mr. Vikram Bakshi Director Mr. Ravi K. Sinha Director Mr. Renaud Jean Palliere Director Mr. Sanjay Khanna Director Company Secretary Mr. N.C. Gupta Auditors S.R. Batliboi & Co. Chartered Accountants Bankers Standard Chartered Bank HDFC Bank Limited Kotak Mahindra Bank Limited Subsidiaries PVR Pictures Limited PVR blu-O Entertainment Limited Contents C. R. Retail Malls (India) Private Limited Sunrise Infotainment Private Limited Registrar & Share Transfer Agents (R&TA) Karvy Computershare Private Limited (KCPL), 17-24, Vittal Rao Nagar, Madhapur, Hyderabad - 500 081 Tel. : +91-40-2342 0815-828 Fax : +91-40-2342 0814 www.kcpl.karvy.com 1. Statutory Information 1 2. Chairman’s Statement 2 3. 2008-09 : An Overview 6 Registered Office 4. Directors’ Report 34 61, Basant Lok, Vasant Vihar, New Delhi - 110057 5. Management Discussion and Analysis 41 Corporate Office 7. Report on Corporate Governance 44 Block A, 4th Floor, Building No 9, DLF Cyber City, Phase III, Gurgaon - 122002, Haryana, India 8. Standalone Financial Statements 56 9. Consolidated Financial Statements 90 10. Summarised Financial Statements of Subsidiaries 126 1 CHAIRMAN’S STATEMENT Dear Shareholders, Speaking candidly, in economic history, there hasn’t been a year quite like this one for many, many decades. Your company has retained its robustness and vitality and has ridden every crest and trough and has re-entered calmer waters looking back at a huge and interesting learning experience. The year has really proved that the exhibition industry is reasonably immune to most factors and is really driven by only one thing – and that is the viewers’ insatiable appetite for good movie content. All good, really ! The situation in the US had a gigantic impact across the globe. And in India too, this particular combination of fundamentals and sentiment affected virtually every sector. The sectors with maximum exposure to the US economy were hit the most when it came to discretionary spending. The Hindi fi lm industry too had a somewhat lackluster annual run and the non-availability of good content too, drove footfall numbers southward. The higher costs of capital and tightened liquidity forced re-thinking on many capital and revenue expenditures critical to business. The plunging Sensex wiped out market Ajay Bijli Sanjeev Kumar capitalizations across all spaces and entertainment was no 2 different. 3 CHAIRMAN’S STATEMENT Dear Shareholders, Speaking candidly, in economic history, there hasn’t been a year quite like this one for many, many decades. Your company has retained its robustness and vitality and has ridden every crest and trough and has re-entered calmer waters looking back at a huge and interesting learning experience. The year has really proved that the exhibition industry is reasonably immune to most factors and is really driven by only one thing – and that is the viewers’ insatiable appetite for good movie content. All good, really ! The situation in the US had a gigantic impact across the globe. And in India too, this particular combination of fundamentals and sentiment affected virtually every sector. The sectors with maximum exposure to the US economy were hit the most when it came to discretionary spending. The Hindi fi lm industry too had a somewhat lackluster annual run and the non-availability of good content too, drove footfall numbers southward. The higher costs of capital and tightened liquidity forced re-thinking on many capital and revenue expenditures critical to business. The plunging Sensex wiped out market Ajay Bijli Sanjeev Kumar capitalizations across all spaces and entertainment was no 2 different. 3 CHAIRMAN’S STATEMENT CHAIRMAN’S STATEMENT However, we at PVR also realized that its in unique consumer situation such as this – actually taking this year’s times like this, that tremendous medium and long topline higher than last year. Distribution dug in deeper for term opportunities arise. This is the time to re-examine better results. fundamentals, re-jig the core of the business and go line by line to draw stronger effi ciencies. Every single person on We are very clear that this astounding year has made all the PVR team stood shoulder to shoulder and hammered of us doubly conscious of the value we have to create and away at every opportunity to do this, regardless of whether deliver. Our systems and our people are at their highest it came wrapped in a good or diffi cult situations, till silver razor-sharp effi ciency. And now, just as the economy and linings appeared everywhere. spending are all set up to pick up, we believe that your company will be the fi rst to hit the ground running, once a PVR used the spaces inherent in times like this, to enter real revival begins. new entertainment and leisure domains. The long awaited bowling centre project was piloted and launched to great While we are pragmatic enough to realize that the current acclaim. New cinemas were inaugurated. Production rallies have been more a matter of sentiment rather than projects were completed and released. Tremendous breadth fundamentals, we are confi dent that the market remains and depth was added to several operation footprints. strong at the core and we look forward to an excellent future, poised as we collectively are, to perform very Given that PVR depends greatly on its internal accruals strongly. to fi nance expansion, your company’s expansion plans were not curtailed the way other capital market-dependant We thank you for having stood like a rock and reposed industry players were. your faith in the company. Above all, we thank all our people for having brought the company through a To handle topline and bottomline contraction, PVR teams remarkably interesting year.