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, wherein the records comprises user activity information on the social media, health parameters of the user and personal information of the user and wherein the stream database comprises information pertaining to the health parameters of the user, and wherein the health parameters are fetched from at least one biological sensor attached to the user for monitoring health of the user; compare each word of the records with each keyword present in predefined lists of keywords, wherein each predefined list of keywords is indicative of an emotion; allocate one or more emotion tags to the records mined from the one or more sources based on the comparison; 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 the predefined lists of keywords, wherein each predefined list of keywords is indicative of the 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.