To
The Members,

Your Directors pleased to present their 16th annual report on the business and operations of your Company for the year ended on 31st March 2005.

Financial Results

Dividend
Due to inadequate profits, your Directors are unable to declare dividend.

Business Performance Review
During the year under review, the income for the company was through exhibition of movies at the Shanti-Kamala Theatres at Thanjavur and rental income from Good Luck Preview Theatres at Chennai.

To explore further opportunities, GV Film has entered into MOU with M/s. Drushya Entertainment Broadcast Streams Ltd. Vizagapatnam for web-casting the internet films rights of the Company on a revenue sharing basis.

Outlook
The future of the Indian Entertainment Industry looks very positive and we expect good opportunities for the film industry. The success rate of films in the current year is relatively higher and factors like reduced Entertainment Tax in Tamil Nadu and stern and effective steps taken by the Government to tackle the problem of video piracy have also helped the Film Industry to a very great extent. Thanks to rapidly decreasing internet connectivity costs and increase in connectivity speeds, the potential for webcasting of the films is very huge. As your company has a huge library of films for which it possesses internet rights, it stands to gain a lot in this scenario.

Statutory Disclosures.

Conservation of Energy and Technology Absorption:
The Company is not engaged in any manufacturing activities, and as such the Particulars relating to conservation of energy and technology absorption is not applicable. The company makes every efforts to conserve energy as far as possible in its Theatre division production floor, offices etc.

Foreign Exchange Earnings and Outgoings:
During the year under review, the foreign exchange earnings amounted to Rs.Nil and the foreign exchange out go amounted to Rs. Nil.

Particulars of Employee's Remuneration and Industrial Relations.
There were no employees whose particulars, pursuant to Section 217(2A) of The Companies Act 1956, read with Companies (Particulars of Employees) Rules 1975, are to be disclosed. Industrial relations in the company were very cordial and stable.