II Development of contents 100.00
III Deposits for acquisition of contents 50.00
IV Brand Building and General Corporate purposes 35.00
V Issue Expenses 45.00 TOTAL 280.00 MEANS OF FINANCE (Rs. In Lacs) Particulars Amount
Initial Public Offering 280.00
Internal Accruals -
Total 280.00
We propose to meet the entire requirement of funds for the Objects from the Net Proceeds of the Issue. Accordingly, the requirement under Regulation 4(2)(g) of the SEBI ICDR Regulations of firm arrangements of finance through verifiable means for the 75% of the stated means of finance excluding the Issue Proceeds is not applicable.
In the event of a shortfall in raising the requisite capital from the proceeds of the Issue, towards meeting the Objects of the Issue, the extent of the shortfall will be met by internal accruals and/or from fresh debt.
DETAILS OF THE OBJECTS OF THE ISSUE I. OFFICE INFRASTRUCTURE DEVELOPMENT
We would like to equip ourselves with the infrastructure facilities which would be commensurate with the standards prevalent in the industry.
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Our in-house facilities would include conference rooms suitable for one-to-one interactions a, latest facilities like liquid crystal display televisions and other viewing equipment like projectors and screens to help us take quick decisions and corrective actions.
Among other facilities we would like to have a lounge, which would be used for displaying our forthcoming productions, and films for which we have acquired the distribution rights.
We have estimated the total expenditure of Rs. 50 Lacs based on the estimates and market survey. The detailed bifurcation of the cost for infrastructure facilities is summarized as below:
(Rs in Lacs)
Sr. No. Particulars Amount
I Furnishing of office Premises 15.00
II Air Conditioners and Other Office Equipments
10.00
III Computers and Accessories 10.00
IV Plasma, Projectors and Televisions 15.00
TOTAL 50.00
II. DEVELOPMENT OF CONTENTS
We have started our operations in the year 2009 and we have effectively involved in market and distribution of media contents such as tv serials, devotional music albums etc. In order to initiate a step towards backward integration, we intend to get a footprint in development of our own pool of media contents.
To start with, we would like to initiate with development of devotional music audio and video albums. We have estimated the cost for the same at Rs. 100 Lacs as bifurcated below:
Particulars Untitled I
Artists
(Including entire casting of the movie)
20.00 Technical Department
(Including various departments such as Camera, Artist, Sound, Editing, Recording and Technological Department
20.00
Equipments Expenses
(Including Equipment Rentals, Special Effects, Purchasing of Equipments)
10.00
Cost of Production
(Including various departments Set Construction, and studio rentals)
40.00
Miscellaneous
(Including office and general expenses, Insurance and Contingency)
10.00
Total 100.00
III. DEPOSITS FOR ACQUISITION OF CONTENTS
In order to strengthen our position in our existing operations, we propose to develop our content portfolio. We adopt royalty approach we enter in to royalty agreements with production houses wherein we acquire the rights to distribute and market the content through multi channel platform viz telecast on local / cable tv channels, dub the same in to different languages, market the same by reproducing content in the form of audio or video cassettes or compact disk or any other form of media. In consideration of the rights to distribute and market, we have to shell out a specific pre agreed ratio to owners of the content in the form of royalty.
In addition to recurring royalty payments, we have to pay an initial sum as deposits for acquisition of distribution rights of the contents. We have apportioned Rs. 50 lacs to accomplish this object.
IV. BRAND BUILDING AND GENERAL CORPORATE PURPOSES
Going forward, as we plan to strengthen our operations, we need to establish our brand name and to create a visibility in the media and entertainment Industry, our company intends to deploy Rs. 15 Lacs out of net issue proceeds , as detailed in following table:
Sr. no. Particulars Amount (Rs. In Lacs)
1 Print Media 5.00
2 Trade Shows & Exhibitions 10.00
Total 15.00
In addition to the brand building exercise, Our Company in accordance with the policies set up by our Board, will have flexibility in applying the remaining Net proceeds of this Issue aggregating 20.00 Lacs, for general corporate purpose towards, financing normal capital expenditure, strategic initiatives, expanding into new geographies, pre- operative expenses, funding routine working capital and strengthening our marketing capabilities.
V. TO MEET THE EXPENSES OF THE ISSUE
The total estimated expenses are Rs. 45 Lacs which is 16.07 % of Issue Size. The details of Issue expenses are tabulated below:
(Rs. In Lacs)
No. Particulars Amount
(Rs. In Lacs) 1. Issue management fees including fees and reimbursements of Market Making fees,
selling commissions, brokerages, and payment to other intermediaries such as Legal Advisors, Registrars and other out of pocket expenses.
27.00
2. Printing & Stationery, Distribution, Postage, etc 7.00
3. Advertisement & Marketing Expenses 6.00
4. Regulatory & other expenses 5.00
Total 45.00
Proposed year-wise deployment of funds:
The overall cost of the proposed Project and the proposed year wise break up of deployment of funds are as under: (Rs. In Lacs) Particulars Already Incurred FY 2013 – 14 FY 2014 – 15 TOTAL Office Infrastructure Development - 50.00 - 50.00 Development of contents - 80.00 20.00 100.00
Deposits for acquisition of
contents - 40.00 10.00 50.00
Brand Building and General
Corporate purposes 25.00 10.00 35.00
Issue Expenses 4.30 40.70 - 45.00
TOTAL 4.30 235.70 50.00 280.00
The status of implementation as per our current business plan is as follows:
No. Activity Start Date Completion Date
1. Office Infrastructure Development
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No. Activity Start Date Completion Date
2 Development of Furnishing and other basic infrastructure facilities
May, 2013 June, 2013
3 Approaching Dealers for Acquisition of Office Equipments, Computers, Televisions & Projectors
July, 2013 August, 2013
2. Development of contents
1 Layout of strategy and survey May, 2013 August, 2013
2 Selection and appointment of artists June, 2013 September, 2013
3 Completion October, 2013 June, 2014
3. Deposits for acquisition of contents
1 Identification of contents Already started June, 2014
Entering Agreements Already started June, 2014
Details of funds already deployed till date and sources of funds deployed
The funds deployed up to 31st December, 2012 pursuant to the object of this Issue on the Project as certified by the Auditors of our Company, viz. M/s N. Kanodia & Co., Chartered Accountants pursuant to their certificate dated 29th January, 2013 is given below:
(Rs. in Lacs)
Deployment of Funds Amount
Project related -
Issue Related Expenses 4.30
Total 4.30
(Rs. in Lacs)
Sources of Funds Amount
Internal Accruals 4.30
Bank Finance -
Total 4.30