Catvision Ltd Management Discussions

This Management Discussion and Analysis Report ("MD&A") has been prepared in compliance with the requirements of Regulation 34(2)(e) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Schedule V (Part B) thereof. The Report provides a comprehensive analysis of the Companys operating and financial performance during the financial year 2025 26, together with an overview of the business environment, industry developments, opportunities, risks, operational performance, financial position, internal control systems, and future outlook. The MD&A forms an integral part of the Annual Report and should be read in conjunction with the Companys audited financial statements, including the notes forming part thereof, the Directors Report, the Corporate Governance Report, and other sections of this Annual Report. The discussion contained herein is intended to provide shareholders and other stakeholders with meaningful insights into the Companys performance, strategic direction, and the key factors influencing its operations and financial results during the year under review. The statements contained in this Report describing the Companys objectives, projections, estimates, expectations, or predictions may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various factors, including changes in economic conditions, government policies, regulatory developments, market dynamics, technological advancements, competitive pressures, and other risks and uncertainties beyond the Companys control. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required under applicable law. The Board of Directors and the Management remain committed to maintaining the highest standards of transparency, accountability, and corporate governance while creating sustainable long-term value for all stakeholders.

A. Economic Overview: Global Economy:

The global economy during FY 2025 26 continued to navigate a challenging and evolving macroeconomic environment marked by moderating inflation, easing monetary conditions, geopolitical uncertainties, and persistent trade realignments. While global growth remained resilient, it was moderated by heightened policy uncertainty, regional conflicts, and structural shifts in global supply chains.

1. Macroeconomic Trends:

Global economic growth remained moderate during the year, supported by resilient consumer spending and improved business activity in several advanced and emerging economies. While the United States maintained steady economic expansion, growth in Europe remained subdued due to weak industrial production and slower domestic demand. China continued to experience a gradual recovery, supported by policy measures aimed at stimulating domestic consumption and stabilizing its property sector. Nevertheless, geopolitical developments and evolving trade policies continued to influence global investment sentiment and cross-border trade.

2. Monetary Policy and Inflation:

Inflationary pressures moderated across most major economies during the year, enabling several central banks to gradually shift from a prolonged phase of monetary tightening towards a more accommodative policy stance. Although interest rates remained elevated compared to historical levels, improving price stability and easing supply-side pressures supported expectations of a gradual normalization of monetary conditions while maintaining vigilance over inflation risks.

3. Energy and Global Supply Chains:

Global energy markets exhibited relatively greater stability compared to previous years, notwithstanding intermittent volatility arising from geopolitical developments and regional supply disruptions. Businesses continued to diversify sourcing strategies, strengthen supply chain resilience, and accelerate investments in digital supply chain management to mitigate operational risks. Advances in logistics infrastructure and technology further contributed to improved supply chain efficiency.

4. Geopolitical Developments:

Geopolitical uncertainties continued to influence the global economic landscape. Ongoing conflicts in Eastern Europe and the Middle East, together with evolving trade and tariff policies among major economies, contributed to market volatility and shifts in global trade patterns. Governments and businesses increasingly focused on supply chain diversification, strategic partnerships, and enhancing economic resilience to reduce dependence on concentrated markets.

5. Technology and Climate Initiatives:

Technological innovation remained a key driver of global economic transformation. Rapid advancements in artificial intelligence (AI), cloud computing, automation, semiconductor technologies, and digital infrastructure continued to reshape industries and improve operational efficiencies. Simultaneously, governments and corporations strengthened their commitment to sustainability through increased investments in renewable energy, clean technologies, climate resilience, and Environmental, Social and Governance (ESG) initiatives, reinforcing the transition towards a more sustainable global economy.

Indian Economy:

India continued to demonstrate remarkable economic resilience during FY 2025 26, maintaining its position as one of the fastest-growing major economies in the world. Strong domestic demand, sustained public capital expenditure, stable macroeconomic fundamentals, and continued policy reforms supported the countrys robust growth trajectory despite global economic headwinds.

1. Economic Performance:

Indias economic growth remained broad-based, supported by healthy private consumption, strong government infrastructure spending, improving manufacturing activity, and sustained expansion of the services sector. Continued implementation of structural reforms and enhanced public investment contributed significantly to economic momentum, while the manufacturing sector benefited from initiatives promoting domestic production and industrial competitiveness.

2. Inflation and Monetary Policy:

Retail inflation remained broadly within the Reserve Bank of Indias target range for most of the financial year, aided by prudent monetary management and moderation in global commodity prices. The Reserve Bank of India maintained a balanced monetary policy approach, carefully supporting economic growth while ensuring price stability and preserving financial sector resilience.

3. Trade and Foreign Investment:

India continued to strengthen its position as an attractive global investment destination. Stable policy reforms, an expanding digital economy, robust domestic consumption, and initiatives such as Make in India, the Production Linked Incentive (PLI) Scheme, and improvements in the ease of doing business supported manufacturing growth and foreign investment. Merchandise and services exports remained resilient despite a challenging global trade environment.

4. Infrastructure and Strategic Development

The Government continued to prioritize investments in infrastructure, logistics, transportation, renewable energy, and digital connectivity. Simultaneously, India strengthened its strategic focus on self-reliance in critical sectors including electronics, semiconductors, defence manufacturing, and advanced technologies, while expanding its global economic partnerships and trade relationships.

5. Digital Transformation and Innovation:

India further consolidated its position as a global digital economy leader through continued expansion of its digital public infrastructure, rapid adoption of artificial intelligence, fintech innovation, digital payments, and e-governance initiatives. The growing startup ecosystem, increasing technology investments, and widespread digital adoption continued to enhance productivity, financial inclusion, and innovation across sectors.

Overall, FY 2025 26 witnessed a gradual stabilization of the global economy amid persistent geopolitical and trade-related uncertainties. Against this backdrop, India continued to outperform many major economies, supported by sound macroeconomic fundamentals, sustained policy reforms, robust domestic demand, expanding digital capabilities, and continued infrastructure development. These factors further strengthened Indias position as one of the worlds leading growth engines and provided a strong foundation for long-term sustainable economic development.

B. Industry Overview 1. Market Overview:

There has been a big escalation in overall material costs. The rapid growth of AI has cornered the worlds semiconductor capacity. As a consequence, the cost of CPUs and memory chips for all electronic and IOT products has sky-rocketed. The Indian Rupee too has declined by more than 10% in a year due to a variety of reasons. This has impacted all costs. To add to this the use of fibre optic cable in the Ukraine-Russia war has created shortages leading to a massive increase in cost of optic fibre cable.

As a result of these increases the company had to increase prices while maintaining competitiveness. This will have a negative effect on sales in the current year and put pressure on margins. A redeeming feature is that your companys services business now exceeds sales. Services have been largely spared this cost increase. The companys treasury operations will too mitigate the pressure on profits.

Meanwhile the industries in which your company participates broadband, hospitality, OTT continue to grow.

2. Technological Integration:

Internet Service Providers (ISPs) are fast becoming the dominant distributors of TV content both linear and OTT. They integrate WiFi, Linear TV and OTT on one fibre-based broadband network. This enables the ISPs to bundle the services to subscribers.

3. Consumer Trends:

Consumers too are migrating to OTT. A vast storehouse of both free and paid OTT content now exists in different languages and genres. There is a growing demand for foreign channels Korean, Turkish, French, Japanese - with subtitling or dubbing in local languages. Even in hotels, guests are increasingly asking for OTT on the room TV. You company is a big distributor of foreign TV content. It is well-aligned to this future.

4. Competitive Pressures:

For long your company has enjoyed leadership in providing IPTV to premium hotels. Due to the market becoming bigger it has become attractive to other players. However, your company still remains the only one providing both linear channels and personalised interactive services on its IPTV distribution platform.

5. Infrastructure Development:

Digital infrastructure, both wired and wireless, is growing. Wired broadband, which impacts your companys businesses and provides high-speed WiFi to homes, had 48.25 million subscribers as on March 2026 (Source: TRAI), a growth of approx. 10% over the previous year. It means almost half the number of homes in India remain unconnected to Wifi. This represents a huge potential for wired broadband services to grow.

6. Future Outlook:

Affordable WiFi connectivity has still to reach half the country, which should help the companys Broadband

Network Solutions division reverse the decline in sales. The spread of wired broadband networks shall also expand the reach of digital TV, a key contributor to your companys channel distribution business.

At present only the premium hotels are able to afford IPTV. But, with new technology and in-house R&D your company is poised to overcome this barrier and will soon provide its IPTV services to a much larger 3 & 4 star hotel segment.

Your companys online sales business is also growing well and shall continue to do so with the launch of new products and with the emergence of Catvision emerging as a consumer brand for IOT products.

C. Company Overview:

Catvision Limited is a public company incorporated under the Indian Companies Act, 1956, and is listed on the Bombay Stock Exchange (BSE Code: 53118). Originally established as Catvision Products Limited on 28th June 1985, the company was later renamed Catvision Limited following the issuance of a fresh Certificate of Incorporation by the Ministry of Corporate Affairs, Government of India.

The company currently has a joint venture with the Unitron Group, Belgium under the name Catvision Unitron Private Limited, based in India. The JV Company was set up to develop digital broadcast technology which was then licensed to the JV partners.

The company has its head office and factory at its premises in Noida. It operates through 4 business divisions.

1. Broadband Networks Solutions Division: Manufacture and sales of systems and products used in wired broadband (high speed internet) networks.

2. Hospitality Sales Division: Installation of IPTV systems and provision of Guest TV services to premium hotels and hospitals.

3. Channel Marketing Division: Distribution of foreign TV channels to cable, DTH and OTT distribution platform operators.

4. Online Sales Division: Sales of set top boxes and internet-related products on Amazon, Flipkart and the companys own e-comm site catvisiononline.in.

D. Business Overview:

The business prospects of your company can be assessed through a SWOT analysis.

STRENGTHS: Your company has the experience of 40 years in the television distribution business. It is now an established brand with cable and DTH operators and leading hotel chains. The company has a strong development base and firm understanding of technology. Its operations are stable with the risk spread over four business divisions. It is debt-free and financially strong with a sizeable corpus of investible funds. Most of all, the company has 2 streams of recurring businesses that generate positive cash flows year after year.

WEAKNESSES: The company is still finding its feet in the broadband network solutions business though it is slowly gaining traction.

OPPORTUNITIES: Wired broadband networks that deliver WiFi to homes have penetrated only 50% of Indian homes. This represents a good potential for growth of the companys optical transmission products and digital distribution of its linear and OTT channels.

The Indian economy is still the fastest growing large economy in the world. This augurs well for all the industries your company is engaged in presently, especially hospitality.

THREATS: The new threat are the 2 wars. They are affecting the Indian economy in many ways. Inputs costs have soared and the currency has devalued significantly.

E. Risks and Concerns:

Industry Risk:

Your companys business is related to broadcasting and distribution of foreign television channels. Both are subject to close regulation by the government.

Company specific Risks:

Your company has a high dependency on imports in respect of which it faces the risk in currency fluctuation.

F. Internal Control Systems:

Your Company has established and maintains a robust system of Internal Financial Controls (IFC) commensurate with the size, scale, and complexity of its business operations, in compliance with the provisions of the Companies Act, 2013. The internal control framework is designed to promote operational efficiency, strengthen governance, ensure transparency and accountability, and facilitate the orderly and effective conduct of the Companys business. The Companys internal financial control systems provide reasonable assurance with respect to the reliability of financial reporting, the preparation of financial statements in accordance with applicable accounting standards, compliance with applicable laws, regulations, and internal policies, safeguarding of assets against unauthorized use or disposition, prevention and detection of frauds and errors, and the accuracy and completeness of accounting records. The framework also ensures that transactions are authorized, recorded, and reported in a timely manner in accordance with established policies and delegated authorities. The effectiveness of the internal financial control framework is continuously monitored and periodically reviewed to identify areas for improvement and to ensure its continued adequacy in the evolving business and regulatory environment. Appropriate corrective and preventive actions are implemented wherever necessary to strengthen the control environment. The Audit Committee of the Board of Directors plays a pivotal role in overseeing the Companys internal control and risk management framework. The Committee periodically reviews the reports of the internal auditors, evaluates the adequacy and effectiveness of the internal financial controls, monitors the implementation of audit recommendations and corrective actions by the management, and provides strategic guidance for further strengthening the Companys governance and control mechanisms.

Based on the evaluations carried out during the financial year, the Board is of the opinion that the Companys internal financial control systems are adequate and operating effectively, providing reasonable assurance regarding the achievement of the Companys operational, financial reporting, and compliance objectives

G. Human Resources/Industrial Relations, including number of people employed:

As on 31^st March 2026, the Company had 52 permanent employees. Your Company firmly believes that its employees are its most valuable asset and that their commitment, competence, and dedication are integral to its sustained growth and success. The Company remains committed to fostering a positive, inclusive, and performance-driven work environment that encourages professional development, innovation, and employee engagement. During the year under review, industrial relations across all levels of the organization remained cordial, harmonious, and conducive to business operations. The Company continued to maintain a constructive relationship with its employees through open communication, mutual trust, and a collaborative work culture. Recognizing the importance of continuous learning and skill enhancement, the Company organized regular in-house training and development programmes aimed at upgrading employees technical, functional, and behavioral competencies. These initiatives were complemented by leadership development and capability-building programmes designed to nurture managerial excellence, strengthen decision-making abilities, and prepare employees for greater responsibilities. The Company also continued to focus on employee motivation, engagement, and well-being through various initiatives that promote teamwork, productivity, and a culture of continuous improvement. These efforts have contributed significantly to maintaining high employee morale and fostering an environment that supports sustainable organizational growth.

H. Changes in Key Financial Ratios:

Ratio	2025-26	2024-25	Change	Explanation to significant change (25% or more change)
Debtors turnover	7.39	5.93	24.58%	-
Inventory turnover	3.46	2.42	42.72%	Increase is due to improved inventory management
Current	2.01	1.90	5.71%	-
Debt-Equity	0.33	0.42	-21.93%	-
Operating Profit Margin%	3.86%	2.67%	44.88%	Increase is due to improved operational efficiency & high margins on sales
Net Profit Margin%	0.79%	-1.51%	152.65%	Increase is due to improvement in profitability during the year, driven by higher operating margins, against losses in previous year.
Return on Net Worth%	0.79%	-1.30%	160.55%	Increase is due to improvement in profitability, resulting in a positive return on net worth as compared to a negative return in previous year.

I. ^{Disclaimer Clause:}

This Management Discussion and Analysis Report contains certain forward-looking statements that reflect the Companys current expectations, estimates, projections, objectives, and assumptions with respect to its future business performance, financial condition, operational results, and growth prospects. These statements are based on information currently available to the management and on assumptions considered reasonable in light of prevailing economic, regulatory, and business conditions. Forward-looking statements are inherently subject to various risks, uncertainties, and other factors and should not be construed as guarantees of future performance. Actual results, performance, or achievements may differ materially from those expressed or implied in such forward-looking statements due to a variety of factors beyond the Companys control. These factors include, but are not limited to, changes in global and domestic economic conditions, demand and supply dynamics, fluctuations in foreign exchange rates and commodity prices, changes in market conditions, technological advancements, competitive pressures, variations in customer preferences, changes in government policies, taxation laws, regulatory and legal developments, geopolitical events, inflationary trends, interest rate movements, and other risks and uncertainties that may affect the Companys business and operations. The Company assumes no obligation to publicly update, amend, or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except to the extent required under applicable laws, regulations, or statutory obligations. Readers are therefore advised to exercise due caution and not place undue reliance on such forward-looking statements. .