Oneworld Media Network Infotainment Limited - Omni Limited, was amalgamated with the company with effect from 30th September, 2003 and net assets of the company were acquired and consideration was discharged by issue of shares of the company.

During the Year 2003-04 Your Company had turned round the corner and registered profit. During the year 2004-05, company entered into an agreement with Drushya Entertainment Broadcast Streams Limited, Vizag - a cutting edge technology company in the area of webcasting - for webcasting of films on the internet on a revenue sharing basis.

In respect of its exhibition business, the company is dependent on the success or failure of the films released in a year. Conventional exhibition of the films by way of screening it in the cinema hall has been performing consistently. However this will require constant up-gradation of the technology. There is an element of seasonality in this business as factors like monsoon and adverse climatic condition during part of the year affects the attendance to the theatre.

In case of exploitation of Internet rights of the films which company possesses, non availability of the adequate bandwidth to the customers in the country was proving a major hurdle. As mentioned already, the position is fast changing for the better. All the technical matters related to webcasting of films will be handled by M/s. Drushya Entertainment Broadcast Streams Limited which will provide a technology platform with adequate security.

The Tamil feature film titled "Ullam Ketkume" starring Mr.Shyam, Laila and others, Directed by Mr.Jeeva with Music by the Ace music director Mr.Harris Jayraj is expected to be successfully released soon.

Your company is now concentrating on strengthening the production and distribution activities by suitable planning. This involves production of small budget movies with good story content and script, increasing the theatre network for exhibition of movies.

Your company has also plans to convert the Shanti / Kamala Theatres Complex at Thanjavur into a multiplex by adding two more mini theatres with in-built shopping complex to attract more crowds and thereby increase the gate collections.

The Company is going ahead with its Rs.40 crores Rights Issue Plan for augmenting revenue for converting the existing Cineplex in Thanjavur into multiplex with food courts and shopping malls, for construction of one new multiplex in Chennai, for production of films and for unleashing its webcasting potential.