1. A system comprising: a processor; and a memory coupled to the processor for executing a plurality of modules present in the memory, the plurality of modules comprising: a mood detection module configured to mine records associated with a user from one or more sources comprising at least one of social media, a personal information database, and a stream database associated with the user; allocate one or more emotion tags to the records mined from the one or more sources; and determine a mood of the user based upon the one or more emotion tags allocated to the records; and a tag allocation module configured to associate at least one multimedia file with a vector; compare each word of a content of the at least one multimedia file with each keyword present in predefined lists of keywords, wherein each predefined list of keywords is indicative of an emotion, and wherein the vector is indicative of a relationship of each word of the at least one multimedia file with the each emotion; allocate one or more emotion tags to the at least one multimedia file based upon the comparison; assign weights to each of the one or more emotion tags allocated to the at least one multimedia file, wherein the weights are assigned based upon a relevance of the content of the at least one multimedia file to the one or more emotion tags; and categorize the at least one multimedia file under one or more emotion tags based upon the weights assigned to the one or more emotion tags; and a playlist generation module configured to dynamically generate a playlist of multimedia files based upon the mood of the user and the categorization of the at least one multimedia file under the one or more emotion tags.