CINEMA CAPITAL VENTURE FUND

SCHEME 1

Your ticket to blockbuster returns

CINEMA CAPITAL VENTURE FUND 1

CONTENTS

The Indian Media and Entertainment Industry Film Entertainment Industry A Unique Investment Opportunity Worlds Fastest Growing Film & Entertainment Industry Explosive Domestic Growth Multiplex Growth Global Market for Bollywood Multiple Revenue Streams Revenue Streams : Then and Now Pre-selling of film rights Risk Minimization Block Buster Returns in the Last 2 Years Film Industry Returns Transparency and Corporatisation Preferred Investment Destination The Film Entertainment Industry Opportunity Investment Strategy Exit Options Fund Summary Why Cinema Capital Venture Fund? Taxation Fund Structure Professional Advisors CCVF Advisory Council Key Management Team Film Entertainment Industry FAQs

4 7 7 9 11 12 14 15 15 15 16 17 19 22 23 25 26 27 28 29 30 31 32 32 32 33

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"The Indian Media and Entertainment (M&E) industry is poised to enter a golden era. One of the largest markets in the world, the industry is seeing strong growth and has the potential to garner US$ 25 billion by 2012." PricewaterhouseCoopers
- FICCI Industry Report

CINEMA CAPITAL VENTURE FUND

The Indian Media and Entertainment Industry The Indian Media and Entertainment industry is one of the fastest growing in the world having doubled its size in the last 4 years. In 2007 alone it grew by 20% reaching an estimated size of INR 51,000 Crores. Film and television segments constitute almost 70% of the entire industry and are its key drivers. The Indian government accorded industry status to the film entertainment business in 2001. Film entertainment companies are now listed on Indian and International stock markets and have attracted significant private equity and venture capital from across the world. Indias leading corporate houses like Reliance, Birla and Mahindra have also entered this sector. Reputable banks and financial institutions now provide funding and insurance services to the industry. This transformation has contributed to the film industry segments rapid growth from approx. Rs 600 crores in 1999 to 9600 crores in 2007, an increase of 15 times in just 9 years.

"From a global perspective, India has been ranked as the fastest growing market in the world for spend in M&E over the next five years." Eighth PricewaterhouseCoopers Global Entertainment and Media Outlook

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CINEMA CAPITAL VENTURE FUND Scheme 1

Launches Indias first SEBI approved Venture Capital Fund focused on the Film and Entertainment Industry Captures the immense growth opportunity of investing in the fastest growing entertainment economy in the world Offers investors a first time opportunity of ownership in film and entertainment ventures Enjoys low correlation with other traditional asset classes, thereby providing investment diversification Employs a best of breed strategy to deliver returns in a highly transparent and professional manner supported by industry experts in areas of media, film, legal, tax and finance Seeks to deliver superior investment returns for its investors by building a diverse portfolio of richly valued companies in this fast growing industry

"India has a relatively conducive and open regulatory environment for the M&E industry, unlike many other developed and emerging countries. This has been a significant factor for global M&E conglomerates to set up shop in India." Farokh Balsara, National Sector Leader, Media & Entertainment, Ernst & Young

CINEMA CAPITAL VENTURE FUND

India is one of the four countries along with Brazil, Russia and China where there is significant opportunity for global media and entertainment companies to make money in the medium and long term. Favourable regulatory environment is one of the reasons that foreign companies find India more attractive than China.
Credit Suisse Report on Global Entertainment 2007

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Did you know?

India sells 2.5 times more tickets than the US the second largest ticket sale market in the world

Film Entertainment Industry A Unique Investment Opportunity

Market Opportunity The worlds largest and fastest growing film entertainment industry with 1100 films released and 3.5 billion tickets sold Industry has doubled in size in the last 4 years and is projected to double again by 2012 Multiplex and Digital Screens projected to grow 5 fold from 2350 currently to over 10,000 by 2012, coupled with higher ticket prices will lead to greater revenue growth India has the most favourable demographics to support a growing entertainment industry with over 60% of the population under 35 years A growing global market for the industry that is now reaching over 40 countries worldwide Risk minimization due to growth of multiple revenue streams, pre-selling of film rights delivers profits even before the release of the film
SOuRCES : PRICEwATERhOuSECOOPERS, FICCI REPORT 2008, 2007 A.T. KEARnEy REPORT 2007

CINEMA CAPITAL VENTURE FUND

Did you know?

Film production companies enjoy the highest valuation in the M & E Sector averaging 35-40 times earnings

Industry Opportunity
Low correlation with traditional asset classes, thereby providing investor portfolio diversification. Entertainment consumption relatively unaffected during times of recession Transparency and corporatisation in film entertainment companies resulting in attractive valuations Preferred destination for global and Indian corporates with over uS$ 500 million Foreign Direct Investment in the last 12 months An opportunity to invest in an industry where almost 70% of the most successful companies in the sector are still privately held

Film Director year Cast Production Budget Domestic net Revs.

Main hoon na Farah Khan 2004 Shahrukh Khan, Sushmita Sen Red Chillies Entertainment 25+ crores 35.5 crores

Om Shanti Om Farah Khan 2007 Shahrukh Khan, Deepika Padukone Red Chillies Entertainment 25+ crores 86.35 crores

n ET BOx OF F I C E REV En u E g ROwTh OF 8 1 %

SOuRCE: IBOSnETwORK.COM, MARKET ESTIMATES

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Worlds Fastest Growing Film & Entertainment Industry

Rate of growth across key markets in the global Film Entertainment Industry

growth in %

SOuRCE: PwC/FICCI REPORT, 2008

Growth of the Indian Media and Entertainment Industry

SOuRCE: PwC/FICCI REPORT, 2008

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Rs Billion

Largest Film Industry

Number of films made

Number of tickets sold (In Billion)

"Our growth rates are much higher than Hollywood's, but in value terms we are way below [the U.S. movie industry], But that will change as ticket priceswhich now average less than $1 in Indiaswiftly catch up with the racing Indian economy" Timmy Kandhari, Head of PWC's media and entertainment practice.

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Explosive Domestic Growth

India has the most favourable demographics to support a fast growing entertainment industry with over 60% of the population under 35 years. Top 10 films - Domestic box-office revenues (2004)
RaNK 1 2 3 4 5 6 7 8 9 10 FILM NaME Veer Zaara Main hoon na Dhoom Lakshya Mujhse Shaadi Karogi Khakee hum Tum Masti hulchul Swades NET REvENUE (Rs. Crore) 38.47 33.4 29.5 27.86 27.24 27.1 21.89 21.49 20.68 16.88 1 2 3 4 5 6 7 8 9 10

Top 10 films - Domestic box-office revenues (2007)

RaNK FILM NaME welcome Om Shanti Om Taare Zameen Par Chak De India guru (2007) Partner (2007) heyy Babyy Bhool Bhulaiyaa Tara Rum Pum namastey London NET REvENUE (Rs. Crore) 72.98 69.96 59.71 53.73 50.34 50.16 42.75 40.61 34.29 29.63

264.51
SOuRCE: IBOSnETwORK.COM

504.16

Increase in domestic box-office revenues (Rs Crore)

Increase of 91% in 3 years for top 10 films

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Multiplex Growth
Multiplex and digital screens are going to grow five fold in the next 5 years, hugely increasing the domestic boxoffice revenue.

Growth in the number of screens over the next 5 years

Average ticket price in India (Rs)

"India's multiplex bandwagon has gone beyond the metros to redefine entertainment in B and C class towns. "While the first phase (of the multiplex story) saw emergence of multiplexes in metros and now this growth is spreading to Tier 2 and 3 cities like Lucknow, Indore, Nasik, aurangabad, Kanpur, amritsar and so on," says ajay Bijli, Managing
Director, PvR Cinemas Outlook Business 2008

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Three thousand six hundred shows per day, 1600 screens, Rs 22 crore gross earnings in the first three days, Rs13 crores net earnings internationally in the first one week. These are some of the numbers that the film, Race, has garnered since its release last week.

DNa India May 2008

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Did you know?

7 of the top 10 highest grossing Indian films in the US have come in the last two years

Global Market for Bollywood

The Industry caters to a worldwide market of nRIs as well as local populations in over 40 countries.

Increase of US box-office revenues (US $ Mn)

Increase of UK box-office revenues ( sterling)

Sterling Mn

Only films which grossed more than $ 500,000

SOuRCE: IBOSnETwORK.COM, BOxOFFICEInDIA.COM

"The Bollywood segment of the UK market goes on growing. It is rare nowadays for the top 20 films each week not to feature at least one Bollywood title" Mark Batey, Chief Executive of the Federation of UK Distributors association

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US $ Mn

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Multiple Revenue Streams

Film IPR (Intellectual Property Rights), is an asset that generates multiple revenue streams in perpetuity Till the late 1980s, 85-90% of a films entire revenue was dependent on domestic box-office

Today, a large number of rights are sold before the film release thereby guaranteeing a minimum return before it hits the box-office

Revenue Streams : Then and Now

UP TILL EaRLY 90s
Domestic Theatrical home video Music

CURRENT SCENaRIO
Domestic Theatrical Overseas Theatrical home Video (DVD, VCD) home Video (Overseas) home Video (Rental) Music (India and Overseas) Mobile Rights Satellite Rights Overseas Satellite Rights Terrestrial Rights Doordarshan IPTV, Internet Rights Retail and Merchandizing Brands and Sponsorship rights

Pre-selling of Film Rights

Om Shanti Om Cost 30 crores (Industry Estimates) Eros acquisition 70 crores Estimated Profit 133%

Welcome Cost 25 crores UTV acquisition 45 crores Estimated Profit 80 %

Jab We Met Cost 15 crores (Industry Estimates) Studio 18 Acquisition 24 crores Estimated Profit 60%

SOuRCES: InDuSTRy ESTIMATES, MARKET SOuRCES CINEMA CAPITAL VENTURE FUND 15

Did you know?

Films like Om Shanti Om, Welcome, Singh is King and Partner have delivered an estimated 100% plus returns while still under production

Risk Minimization
The risks are getting increasingly minimized due to the emergence of alternative revenue streams. Revenues from DVD sales, mobile, gaming, internet, DTh, Video on Demand are set to increase fivefold by 2012.
Trends in Distribution of Revenue Streams Distribution of revenue streams in a mature market (hollywood)

2006

2011 (Projected)

US Film Industry

SOuRCE: yES BAnK REPORT, AMR'S FILM EnTERTAInMEnT wORLDwIDE

Film Director year Cast

Production Budget Domestic 29.5 crores 83.5 crores net Revs. Overseas 5+ crores 25+ crores nET BO x OFFICE gRO wTh 214%
SOuRCE: IBOSnETwORK.COM, MARKET ESTIMATES

Dhoom Sanjay gadhvi 2004 Abhishek Bachchan, John Abraham yashraj Films 20+ crores

Dhoom 2 Sanjay gadhvi 2006 Abhishek Bachchan, hrithik Roshan yashraj Films 30+ crores

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Blockbuster Returns in the Last 2 Years

16 out of the top 25 domestic box-office revenue earning films have come in the last 2 years. REvENUE (Rs. Crore) 86.50 Cr 85.48 Cr 76.21 Cr 70.00 Cr 69.89 Cr 65.53 Cr 63.98 Cr 62.14 CR 61.04CR 53.97 CR 53.13 Cr 51.64 Cr 51.07 Cr 50.04 Cr REvENUE (Rs. Crore) 49.00 Cr 46.40 Cr 44.84 Cr 44.00 Cr 41.69 Cr 41.65 Cr 41.00 Cr 36.00 Cr 35.00 Cr 34.00 Cr 30.00 Cr

RaNK FILM NaME 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Om Shanti Om Dhoom 2 welcome gadar Ek Prem Katha Lage Raho Munnabhai Krrish Chak De India Partner Taare Zameen Par Bhool Bhulaiyaa Fanaa heyy Babyy Rang De Basanti Don

YEaR 2007 2006 2007 2001 2006 2006 2007 2007 2007 2007 2006 2007 2006 2006

RaNK FILM NaME 15 16 17 18 19 20 21 22 23 24 25 Kabhi Khushi Kabhie gham Kabhi Alvida na Kehna no Entry Koi Mil gaya Bhagam Bhag guru Veer Zaara Devdas Kal ho na ho Kaho naa Pyaar hai Mohabbatein
Blockbusters in 2006 2007
SOuRCE: BOxOFFICEInDIA.COM

YEaR 2001 2006 2005 2003 2006 2007 2004 2002 2003 2000 2000

Film Director year Cast

Production Budget Domestic 25 crores 65.28 Crores net Revs. Overseas 5+ crores 15+ crores nE T BOx OFFICE RE VE nu E gROwTh OF 1 6 7 %
SOuRCE: BOxOFFICEInDIA.COM

Munnabhai MBBS Raj Kumar hirani 2003 Sanjay Dutt, Arshad warsi Vidhu Vinod Chopra 10+ crores

Lage raho Munna bhai Raj Kumar hirani 2006 Sanjay Dutt, Arshad warsi Vidhu Vinod Chopra 15+ crores

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Box-office grosses rose during five of the last seven economic downturns in the U.S. including the '70s oil crisis and the burst of the dot-com bubble in the early 2000s. The total number of movies people see in a year tends to rise in recessionary periods.
Time Magazine March 2008

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Film Industry Returns

"a box-office hit movie like Rang De Basanti, which was made with a budget of Rs 30 crore recovered nearly half of its production cost through satellite rights. Similarly, Lago Raho Munnabhai garnered more money than its production costs by selling its satellite rights for Rs 15 crore." Economic Times Dec 2007

Hits - Big Budget Films

Krissh Cost 40 crores Domestic Theatrical 63 crores (30 crores) Satellite 15 crores Overseas 15.5 crores Home video and music 4.5 crores Merchandising 4 Total revenues 69 crores Estimated Profit 72%

Rang De Basanti Cost 30 crores Net Revenues 52 crores (20 crores) Satellite 16 crores Overseas 20 crores Estimated Profit 55%

Hits - Mid Budget Films

Lage Raho Munnabhai Cost 15 crores Domestic theatrical net 64 crores (28 cr shr) Overseas 10 Satellite 14 home video 2.5 Music 1.0 Total revenue 55.5 crores net Estimated Profit 370%

Pyaar ke side effects Cost 3.5 crores Theatrical 8.5 crores (4 crores) Satellite 2 crores home video 0.75 crores Music 0.75 crores Total 7 crores Estimated Profit - 100%

Hits - International Films

Bend It Like Beckham Cost 22 crores Worldwide revenues 300 Crores Producer share 175+ crores Estimated Profit 600%
SOuRCES: InDuSTRy ESTIMATES, TRADE MAgAZInES, IBOSnETwORK.COM, MARKET SOuRCES CINEMA CAPITAL VENTURE FUND

Monsoon Wedding Cost 2.5 crores Worldwide Revenues 150 crores Producer share 80 crores Estimated Profit 3100%

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"a film like Khosla Ka Ghosla, which was made on a modest budget of just above Rs 2 crore, spent another two-thirds of that amount on marketing the film raked in as much as Rs 22 crore in collections." Economic Times 2008

Hits - Content Films

Bheja Fry Cost 1.5 crores Total revenues 8 crores Estimated Profit 433%

Khosla Ka Ghosla Cost 2 crores Total revenues 10 crores Estimated Profit 400%

Regional Films

Sivaji Cost 60 crores Total Revenue 120 crores Estimated Profit 100%
SOuRCE: InDuSTRy ESTIMATES, IBOSnETwORK.COM

Pokhiri (2006) Star Mahesh Babu Director Puri Jagannathan Cost 14 crores Gross Business 50+ crores Estimated Profit 250%

Fiza Cost 5.5 crores Total revenue (Industry estimates) 27 crores

Yaadein Cost 12 crores Total revenue (Industry estimates) 44 crores

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Hollywood investors are now "reassessing their previous cool attitude" towards India and major players like viacom, Universal, Dream Works and Warner Bros. prefer to invest in the Indian entertainment industry compared to China, says Hollywood trade magazine variety
Economic Times March 2008

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Transparency and Corporatisation

Shift from traditional sources of finance to institutional sources IDBI has not had a single non Performing Asset since it started financing film companies Corporatisation across the value chain of production, distribution and exhibition More corporate and transparent structures have attracted increased investments and led to higher valuations averaging 30-35 times earnings

COMPaNY NaME

REvENUE FY07 (Rs Million) growth % 3193% 142% 197% 13% 54% 38% 4.30% 53%

EBITDa GROWTH (Rs Million) 199 167 2,018 300 338 370 455 579 growth % 1274% 716% 314% 185% 72% 40% 20% 2%

MaRKET CaP (Rs Million) 10,706 4,042 30,512 19,875 4,326 7,887 6,378 37,920

SHaRE PRICE aS ON MaY (Rs) 378 403 662 800 188 620 104 317

PE MULTIPLES

Pyramid Ashtavinayak Adlabs Films uTV Software PVR Prime Focus Inox Leisure TV 18

1,643 967 3,316 1,524 1,986 551 1,530 1,939

54 24 15 66 13 21 14 65

SOuRCE: www.MOnEyCOnTROL.COM

growth % compared to previous year

"India's film industry has long been prolific and chaotic. Now, with modern business leaders, it's coming of ageand taking aim at Hollywood, U.S.a." Newsweek 2008 Cover Story

Did you know?

There is almost a complete absence of cash transactions from a star salaries to the lowest light-man on sets

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Preferred Investment Destination

The Indian film and entertainment sector has become a preferred investment destination for major Indian corporates and global investors. Major Indian corporates like Reliance ADAg, Mahindras, Birlas have entered this sector george Soros has invested over $100 million in this sector walt Disney has partnered with yash Raj Films to make animated movies warner group is funding Ramesh Sippys film projects Viacom has joint-ventured with the TV 18 group to form Viacom-18 Sony Pictures Entertainment has co-produced Saawariya with SLB Films (Sanjay Leela Bansali FIlms). ICICI ventures and JP Morgan have invested 120 Crores in PVR Pictures
FDI (USD million) 200 30 21.91 7.47 3.40 3.54 0.24 100 FDI (Rs. million) 8050 1181 885.64 295.05 138.57 144.56 9.90 4100

Preferred global Investment Destination A snapshot INDIaN COMPaNY uTV Software uTV global Broadcasting Times global Broadcasting uTV Software K Sera Sera Shree Asthavinayak Cinemeta Entertainment Reliance Big Entertainment
SOuRCE: MARKET SOuRCES, gOVERnMEnT OF InDIA; JAn 2007- nOV 2007

FOREIGN INvESTOR walt Disney Company walt Disney Company Reuters Singapore Pte Ltd. Various entities Various Mauritius entities Various entities Ratnam Sudesh Iyer, Singapore george Soros

Indian film entertainment companies have successfully raised funding overseas COMPaNY Eros uTV Indian Film Co. (TV-18) Total aMOUNT (IN Rs Crores) 220 300 440 960 MaRKET uK AIM uK AIM uK AIM CaTEGORY Film Production, Distribution Film Production, Distribution Film Production, Distribution

Did you know?

100% FDI allowed in the Film Entertainment Industry

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In India, what is it that drives internet portals, gaming devices, and mobile phones? Intel? Wrong. Google? Wrong again. Microsoft? You are not even close. It is Bollywood.
Economic Times 2008 Bollywood : Lifeblood of various Industries

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The Film Entertainment Industry Opportunity

An Untapped Investment Opportunity
70% of Indias most successful films in the last 2 years were made by privately held companies

Top Grossers Worldwide - 2006-08 Sr No. 1 2 3 4 5 6 7 8 9 10 Name of The film Dhoom 2 Om Shanti Om Krrish welcome Lage Raho Munnabhai Jodha Akbar Race guru (2007) Fanna Partner (2007)
Films produced by privately held companies
SOuRCE: www.IBOSnETwORK.COM

Year 2006 2007 2006 2007 2006 2008 2008 2007 2006 2007

% GrowTh 144 140 130 125 114 113 104 101 99 99

Low Correlation To Business Cycles And Traditional Asset Classes A unique opportunity to invest in a lowly correlated asset class In 5 out of 7 economic recessions in the uS, box-office revenues grew Films are still the cheapest source of mass entertainment
"Box-office grosses rose during five of the last seven economic downturns in the U.S. including the '70s oil crisis and the burst of the dot-com bubble in the early 2000s. It's not just a ticket price bump that accounts for the extra dough, either the total number of movies people see in a year tends to rise in recessionary periods." Time Magazine March 2008

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Investment Strategy
To deliver superior investment returns by building a portfolio of richly valued companies in the Indian film and entertainment industry. To invest in unlisted Film Entertainment Companies that have a critical role in industry development Possess an established track record have moved to corporate governance and transparent structures. have sound business models have a strong catalogue of products/IPR held have a strong pipeline of products/projects signed Possess key talent and vendor relationships

Investment mix

Film Production Ventures Established production houses First generation entrepreneurs Boutique outfits niche and regional players Productions ventures of established actors/directors

Film Entertainment Related Segments Animation and visual effects Studios Shooting and Post Production Television software Digital content and related technologies Content distribution platforms and technologies Film entertainment supported streams such as gaming, licensing and merchandising, etc new media opportunities, especially in online media and entertainment space

"across a slate of 20 or 30 films, just two or three hits will all but ensure a positive return for investors, based on over 30 years of historical performance data from the film industry. Paul Kent, SvP Citibank, Euromoney,
October 2006

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Did you know?

Domestic Box-office collections of top tens film total at 264 Crores in 2004 grew to 485 Crores in 2007 registering an increase of 85%

Exit Options for Fund Investments

Sale to Strategic Buyer

Large business groups seeking to enter the film and entertainment business and expansion by existing players. Examples: Turner-Miditech, Disney-uTV, Kosmic-greycells Entertainment, Reliance Adlabs, Synergy Adlabs, Mahindra group, Reliance Industries, Aditya Birla group.

Sale to Financial Buyer

global PE firms now operating in India such as Blackstone, 3i, Columbia Capital, Carlyle, TPg and Soros Funds Management have significant entertainment assets internationally and are looking at expansion into India. Examples of such transactions are deals of 3i-nimbus and JM Financial-ushodaya., PVR Pictures J.P. Morgan/ICICI Ventures.

IPO Route (Domestic and International)

CCVF investee companies can successfully launch an IPO in India within 36-48 months. Examples of successful IPOs in the last three years Pyramid Samaira, Balaji Telefilms, uTV, Adlabs and Shree Ashtavinayak.
Film Director year Cast Production Budget Domestic net Revs.
SOuRCE: MARKET SOuRCES

Jhankaar Beats Sujoy ghosh 2003 Rahul Bose Juhi Chawla Pritish nandy Communications 2.5+ crores 2.5 crores

Pyar ke side effects Saket Chaudhary 2007 Rahul Bose Mallika Shehrawat Pritish nandy Communications 4+ crores 12 crores

nET B O x O F F IC E gR O w T h O F 3 8 0 %

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Fund Summary Name of Trust Fund Fund Structure Hurdle Rate

Cinema Capital Venture Fund Scheme 1 15% pa (Post expenses, pre-tax)

Performance Fee
20%

Closed ended 5 years

Target of Trust Fund Green Shoe

Rs. 500,00,00,000 (Rupees five hundred crores)

Investment Manager
Cinema Capital

Rs. 250,00,00,000 (Rupees two hundred and fifty crores)

Legal Advisor
DSK Legal

Minimum Investment

Tax Advisors
Ernst & young

Rs. 10,00,000 (Rupees ten lakhs only)

Initial Capital Contribution

Transaction And Valuation Advisory

Ernst & young

25% of total commitment. Balance in 3 installments at the end of every quarter after the final closing

Auditors

Management Fee

Pricewaterhouse

2% pa of capital commitment

Liquidity

Administrative Expenses Initial Setup Costs

As per actuals (upto 2% pa of capital commitment)

Possible income distribution after 36 months as per management discretion.

Target IRR

5% (1% to be charged per annum)

35% (post expenses, pre tax)

Did you know?

Monsoon Wedding delivered an estimated 3100% return to its producers due to the international box office.

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Why Cinema Capital Venture Fund?

First SEBI regulated entertainment venture capital fund uniquely focused on the Film and Entertainment sector First time opportunity for ownership in film entertainment ventures Independent professionals not aligned with any corporate group Experienced management and advisory council Team with access to key talent across all industry segments Transparency and SEBI guidelines for investor reporting Best of Breed strategy PricewaterhouseCoopers as auditors, Ernst & young as taxation and valuation advisors Entertainment sector investment experts with successful track records

"In India, what is it that drives internet portals, gaming devices, and mobile phones? Intel? Wrong. Google? Wrong again. Microsoft? You are not even close. It is Bollywood." Economic Times 2008 Bollywood:
Lifeblood of various Industries

Film Director year Cast Production Budget Domestic net Revs. Overseas

no Entry Anees Bazmi 2005 Anil Kapoor Salman Khan Boney Kapoor 10+ crores 40 crores 8+ crores nET B O x O F F IC E gR O w T h O F 8 7 %

welcome Anees Bazmi 2007 Anil Kapoor Akshay Kumar Feroz nadiadwala 10+ crores 73 Crores 20+ crores

SOuRCE: IBOSnETwORK.COM, MARKET ESTIMATES

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Did you know?

6 out of the top 10 Income Tax payers in India are from the film industry

Taxation
Cinema Capital Venture Fund is expected to generate the following three streams of income: Capital gains Interest and other income Dividend Income

Capital Gains
Taxability of the above streams of income is given below:

DESCRIPTION Long term capital gain on listed shares/ securities Long term capital gain on non listed shares Long term capital gain on other assets Short term capital gain on listed shares/ securities Short Term capital gain on non listed shares Short Term capital gain on other assets

HOLDING PERIOD More than 12 months More than 12 months More than 36 months Less than 12 months Less than 12 months Less than 36 months

TaxaTION nIL 22.66% 22.66% 16.99% 33.99% 33.99%

Interest and Other Income

Interest Income 33.99%

Dividend Income
Dividend Income
Note:

nIL

The tax rates mentioned above are as per the Financial Act, 2008

Taxability of the Investor As the Fund will be taxed at the maximum marginal rate applicable, the distribution made by Cinema Capital Venture Fund at the end of its tenure will be exempt from tax in the hands of the investor.
CINEMA CAPITAL VENTURE FUND 30

Fund Structure

INVESTORS

ADVISORY COUNCIL

Identify Investment Opportunity

CINEMA CAPITAL VENTURE FUND

CINEMA CAPITAL

Advisory Investments based on Business Plan and Investment Type

Advisory Sourcing Monitoring

E&Y Venture Capital Undertaking 1 Venture Capital Undertaking 2 Venture Capital Undertaking 3
Transaction / Valuation / Structure / Taxation

PWC
Audit

DSK Legal
Legal Advisors

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Professional Advisors
Legal Advisors
DSK Legal

CCVF Advisory Council

Ketan Mehta
Director national Award winner

Key Management Team

Samir Gupta
Over 12 years in the Entertainment and Media industry Film Producer Ex CEO, FBC Media group, a European media corporation

Tax advisors
Ernst & young

K N Memani
Ex Chairman, Ernst & young

Valuation Advisors
Ernst & young Transaction Advisory Services

Asad Sultan
Managing Director, Cantor Fitzgerald Investment Banker

Sanjay Bhattacharji
Over 15 years of management experience in the Film and Entertainment industry Ex Chief Operating Officer, uTV Motion Pictures Ex head Of Strategy, InOx group Ex Consultant Film Strategy, STAR India

Auditors
Pricewaterhouse

Registrars
Karvy

Anil Dharker
Film Critic Columnist

Sandeep Bhammer
Managing Director, BAM Investment Advisors (Asia)

Soumo Ganguly
Over 10 years of international experience in the Media sector in business development and marketing, finance and fund raising, organization building, and general management Ex CEO, Chivach Media, an Entertainment group Ex CEO, Moving Picture Company, a listed entertainment company

Sudhir Mishra
Director national Award winner

Kabir Bedi
Actor Media Personality

Mohit Mehra
Over 14 years of experience across Advertising, Television and Film Entertainment Ex Business head, home Production, Adlabs Films Ex AVP Projects, uTV Ex AVP Entertainment Media, nimbus Former Marketing head, Ten Sports, Channel [V]

Komal Nahta
Trade Analyst Publisher, Film Information

Madhu Mantena
CEO, Saregama Films

Shankar, Ehsaan, Loy

Indias leading film music directors

Vivek Singhania
Ex CEO, Pantaloon Films

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Did you know?

Most films are presold and profits booked before release

Film Entertainment Industry FAQs

Q : What is Film IPR?
A : IPR = Intellectual Property Rights are the rights created when you make a film. These rights are like an asset that can be sold for revenue. This asset has perpetual value and is leased to various buyers from time to time to generate revenue for the IPR owner.

Q : How do films make money?

A : Films make money from various sources theatre tickets worldwide, television rights exploitation, sale of rights for dvd, video rental, music, internet, gaming, merchandising, remake rights.

Q : What does it mean when a film is a HIT?

A : The word hit is often colloquially used to denote a degree of success. when a film recovers more than 2-3 times the money invested, it is termed a hIT.

Q : What is the maximum upside that one can see in a film?

A : Films have been known to give upto 4-6 times the initial amount invested in them. In the last two years with all around growth, a number of films have delivered such returns.

Q : Is there insurance cover for film producers ?

A : yes. Comprehensive insurance cover is available to film production companies today to safeguard against any untoward incidents while a film is in production which includes accidents, fires, equipment loss, theft etc. A producer can also opt for key man insurance for his lead actors, which insures him against any loss if anything were to happen to the actor which caused delays or stoppage of his film project.

Q : What does it mean when a film is a FLOP

A : The term FLOP is usually given to a film which has not performed in the box-office. In the current scenario with fast growing alternative revenue streams like television rights, dvd, dth, online and gaming, most films can limit their downside to 10-15% of the production cost. This usually gets recovered over a medium term due to exploitation and re-sale of IPR rights.

Q : What kind of valuations do companies in the Film Entertainment command ?

A : Film entertainment ventures command an average of 30-40 times earnings in the BSE/nSE markets. In the private equity space this can be as high as 25-30 times earnings.

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DISCLAIMER: This Presentation is intended only for the benefit of potential investors to whom the presentation is made or delivered for the purpose of considering a possible investment in the Cinema Capital Venture Fund Scheme 1 1. The presentation is not and should not be deemed to constitute an offer to invest or a solicitation of an offer to invest, to or from the public in general or to or from any person other than the person to whom the same is addressed. 2. Any reproduction hereof in whole or in part, or the disclosure of its contents or the distribution of the presentation, without the prior written consent of Cinema Capital, is prohibited. 3. The Contents of the presentation are provisional and may be subjected to change. The presentation is neither a prospectus nor an offer or invitation to apply for units of fund. The information contained herein is not exhaustive and must be read in conjunction with the information memorandum and the other documents. 4. While reasonable care has been taken to ensure that the information included herein is correctly and fairly represented. Cinema Capital, and other parties involved in the presentation hereof assume no liability for the relevance, accuracy or completeness of the contents herein. 5. In making an investment decision, potential investors must rely on their own examination of the fund documents and the term of the offering, including the merits and risks involved. 6. Before making an investment, each potential investors should make its independent assessment and inquiries and consult its own advisors as to legal, business, tax and related matters concerning an investment in fund. 7. The fund and its portfolio companies are subjected to several risk factors that may affect the fund performance which are detailed in the Information Memorandum.

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THANK YOU

CINEMA CAPITAL

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