In an exclusive interview with Yogita Khatri of Myiris.

com, Tapaas Chakravarti, chairman & chief

executive officer (CEO) of DQ Entertainment (Q,N,C,F)* (DQE) spells out his vision for the company`s
future plans.
Tapaas Chakravarti is a chairman & chief executive officer (CEO) of DQ Entertainment (DQE). Tapaas
with over two decades of international corporate management experience has helped to shape the
success story of his creation, DQ Entertainment Group. Tapaas began his career with Sandoz India (now
Novartis, a Swiss Multinational) and later joined STP, an infrastructurecompany . Tapaas has held senior
positions in Sales and Projects at Coats of India, (a British multinational). He was head of special projects
for Sriram Group where he developed countrywide contract manufacturing activities. Tapaas is a science
graduate with Post Graduate Qualification in Business Management backed with over 23 years of
experience spanning across industries both national and multinational. Tapaas is committed to various
social responsibilities and believes in ethicalbusiness practices. He is a part of several national and
international charitable organizations which includes extensive work for orphans, AIDS effected children
and education for the deprived. He is also an active member on the Board of the Indo-British Partnership
and is a member of the Young Presidents Organization.
> How do you see the future of animation and entertainment industry?
The entertainment industry, of which animation is a subset, will continue to grow & show resilience even
during these times of economic crisis. The growth is poised for exciting times as the requirement of good
content from customers continues to grow aided with technology (for e.g Stereoscopic, 3D Polaroid TV
etc) and ever increasing mediums of distribution (IP , Internet, etc).
> DQE has raised Rs 1.28 billion from the public issue. Can you give a break up of how do you
plan to utilize the issue proceeds?
As disclosed in the prospectus DQE fund requirements was Rs 2.04 billion raised through IPO was Rs
1.4 billion ( net of issue related expenses and including pre-IPO placing) and Rs 0.64 billion through
terms loans & internal accruals. This amount will be used to finance the company`s growth plans viz.,
> Investments in co-production agreements focusing on IP content creation,
> Development of office premises / production facilities and development of infrastructure and additional
facilities at the SEZ Unit, Kokapet,
> Investment in our subsidiary in Ireland and general corporate purposes.
> Recently, your company has signed broadcasting deal with BBC and Canada based TVO. What
impact this could have on the revenue of the company?
The deal with BBC & Canada Based TVO is for DQE`s own TV Series `Jungle Book `. This deal is
addition to the agreements which thecompany has already concluded for this series with Walt Disney,
ZDF Germany, ABC Australia, NBC Universal, Al Jazeera UAE, TF1 france, etc. This deal while definitely
propping up the revenue helps gain footprint for DQE in this segment & also reinforces DQE`s
relationship with these partners.
> Your company`s current order book stands at Rs 4.57 billion approximately. Can you split up the
order book position in different segments of operation? How much of the said order book you
expect to convert in revenue terms in FY11 and FY12?
The Rs 4.57 billion order book is towards the production revenue segment and comprises over 95% in the
animation space while the balance s for gaming. Within the animation space, over 70% of the order book
is co-production deals where DQE will be entitled certain exploitation rights enabling thecompany to get
an upside in terms of revenue. These production projects are long term and have a visibility of over 2 to

21/2 years times.

> What kind of fresh orders (type of orders included) are you expecting in next two years?
Going by past trends over 60% of the DQE`s order have been repeat orders from the existing clients and
given the strong relationship DQE has this trend will continue. With the launch of home grown projects
both for domestic & international market, newer clients (irrespective of size) continue to be interested for
partnership with DQE. Further thecompany with its technological edge, skilled manpower & state of the
art facilities is ready to adapt itself for changing demands of customer preferences. DQE expects the
customer challenges to become more intense given the opportunities of distribution and is prepared for it.
> DQE`s total income increased by 60% to Rs 1.5 billion in FY09, EBITDA margins improved to
35.6% in FY09 from 26.6% in FY08. How do you plan to maintain the profitability in the next fiscal?
DQE`s growth in terms of revenue, EBIDTA have been driven by getting the right product mix and
investing in training and technology. Theseinvestments have enabled the company to manage its
resources more effectively, bring in efficiency and most importantly ensure scheduled delivery.
> How do you view the impact of slowdown in Europe and America and/or currency fluctuations if
any on financials of the company?
To offset the impact of the slowdown, the company has been strategically getting into investing in own
internationally famous IPs (Jungle Book, Peter Pan, etc), increasing its presence in the growing large
indian entertainment market. This diversification has helped thecompany to gradually move from its
customer concentration from the Western market.
> Could you spell out your new initiatives over next year? Are you looking for strategic alliances
or tie-ups in the near future?
The company will continue to invest in strong IPs and position itself into a complete entertainment
company.
> Would you like to convey any message to the shareholders and investors of the company?
The company always believed in bringing value to its balance sheet by having a diverse but yet strong
customer base, to own world famous properties, strong revenue visibility. These are the catalysts for
steady growth and will benefit the shareholders/investors alike in the long run.