Bollywood Media & Entertainment Fund PLC

The Indian movie industry or Bollywood as it has come to be known, is experiencing a massive revival. In its wake, is a trail of dashing heroes, sultry heroines and a population of star struck fans hankering for more.

Indians breathe, drink and live the celluloid world. It is a world of make-believe with heroes, heroines and dastardly villains. A world where good triumphs over evil and all's well that ends well - all the time! A world where the silver screen provides not only entertainment, but also a gamut of emotions and visual experiences set in exotic locations. For a few hours, the viewers escape to a world of perfection, a dream-like world of glamour and glitz. A slice of Utopia for a few rupees is a real bargain.

Indian cinema's era began in the early nineteenth century when India as a country was still experiencing major social and political reforms.

In 1931, the first Indian film with sound, Alam Ara was released by the Imperial Film Company in Bombay

The last decade has also seen a mass revival of quality Indian cinema after a lacklustre 70s and 80s, productions such as Hum Aapke Hain Koun, Dilwale Dulhania Le Jayenge and more recently Lagaan are progressing the medium and pushing the revival. The companies that produced films like Lagaan, Kabhi Khushi Kabhi Gham (K3G), and Kaante, have created much appeal to the international market, and have all demonstrated the high standard of quality in film production, which is as competitive with the international production houses.

Investment Objectives

The Fund seeks to achieve capital growth and will primarily invest into the Indian Film Industry. This will include providing financial assistance to Bollywood themed productions, foreign companies seeking to outsource their operations and co-production of movies with production houses in India. In addition, the Fund may, in the absolute discretion of the Directors acting on advice from appropriately qualified investment advisers appointed by the Directors, invest part or all of its assets into listed companies operating in the same field.

Funding would be available to recognised and established Media and Entertainment companies that are engaged in the business of production, distribution, media and entertainment related to the Indian Media & Entertainment Industry and those providing technology services for various forms of entertainment, broadcasting and news services.

Media Vision Management Limited will act as Manager of the Fund pursuant to an agreement between the Fund and the Manager.

The Administrator

Fedelta Securities Limited (the “Administrator”) was incorporated with limited liability in the Isle of Man on 6th October 1993 and has been appointed by the Fund pursuant to an agreement between the Fund, the Manager and the Administrator (the “Administration Agreement”) to provide administration services to the Fund, including the maintenance of the register of shareholders.

The Administrator is an authorised person, for the purposes of the Financial Supervision Act 1988, by virtue of holding a category 3(b) investment business licence issued under Section 3 of the Investment Business act 1991 of the Isle of Man.

Custodian

The Fund has appointed ABN AMRO Bank N.V. as custodian (the “Custodian”) of the non-cash assets of the Fund. All cash assets of the Fund will be held in an account in the name of the Fund and operated by the Administrator.

Auditors

The Auditors of the Fund are KPMG Audit LLC, chartered accountants, of Heritage Court, 39-41 Athol Street, Douglas, Isle of Man, IM1 1LA.

Investment Process and Methodology

The Fund will seek to gain returns through both participating in the intellectual property rights of the productions (royalty rights) through the provision of primary capital and providing finance to productions in the form of debt capital in return for interest payments in line with similar debt instruments.

Experienced production houses with proven track records will be invited by the Manager to submit project proposals to the Film Advisory Board.

The Manager will also consider proposals from other Bollywood Media related organisations for entertainment projects.

Projects that benefit from tax incentives, in the countries where production is carried out, would also be considered to receive the support for funding, as this enhances the capital returns.

The Fund will adopt a methodology that minimises risk by spreading the underlying assets into a basket of film projects, which comprise small, medium and blockbuster budget movies. All productions will be backed either by Completion Guarantee Bonds or Bank Guarantees.

The Bollywood Media & Entertainment Fund has pioneered an opportunity that will capture the development and the growth of the entertainment industry into one structure. The unique Bollywood Media & Entertainment Fund seeks to provide investors with the opportunity for capital growth by investing into film productions and related industries

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