City Pulse Multiplex Ltd Management Discussions

Overview

Entertainment of 800 Mn people in the country. The next driver is the low cost of data which is taking away the cost barrier from the minds of customers while they are streaming content.

Content streaming is now both accessible as well as affordable, and were still at the tip of this iceberg.

The other contributor is the changing family dynamic wherein its increasingly acceptable for different members of the familyto watch different content on their respective devices at the same time. This means not only are more hours of content being consumed per family, but also the consumed content is more varied, creating space for both traditional and new-agestory content creators.

The digital revolution has other implications on the content economy. On-demand content makes it imperative for creatorsto use every available trick in the book to ensure the audience stays with them and does not switch to something else. Weare seeing a trend of popular music being used to drive narrative and emotion in many of the recently successful shows.

Content creators who are well-funded with strong delivery processes and the backing of an existing IP bank will be well- positioned to take advantage of this opportunity. The other positive change is the slowly rising popularity of Indian contentacross global audiences. This is triggered by the easier availability of Indian content across all global digital streaming platforms, and an increasing willingness to watch content with subtitles.

Here, its not just the A-lister films, but smaller thematic films and Indian music thats getting appreciated. Great news for Indian content owners/creators as it will ensure higher value for every minute of content owned/ created.

As the Pandemic slowly draws to its endgame and we start to see the proverbial light at the end of the tunnel, the mood turns upbeat. This is reflected in bullish trends seen in stock markets worldwide, which are seen as a barometer of optimismin the future.

City Pulse Multiventures Limited (CPML) is uniquely poised to take advantage of 2 factors at play here - optimism and celebration mean a directional return to pre-pandemic consumption - with the demand for entertainment going up, while the enforcedstay-at- home rules have accelerated the rate of adoption of digital entertainment.

As a pure-play content company, CPML is both recession proof as well as bounce-back friendly.Industry.

Structure & Development

Media & Entertainment Industry

According to FICCI, the Indian M&E sector was growing @ 9% till 2019 and expected to reach INR 2.25 Tn by 2024.

All was on track till Covid-19 impact adversely hit parts of the industry, some short-term (advertising dependent businesses) and others medium-term (out-of-home experiences). But it also gave a huge fillip to in-home consumption (Films, Series, Music, Gaming). The gainers have been the digital platforms (Video and Music) who have seen tremendous growth in both first-time users as well as time spent per user. But amidst all this, the biggest beneficiary has been Content. There is more content getting consumed by more number of people in the post-Covid era than the pre-Covid one. The digital revolution has been knocking at the door of entertainment industry for some time but is now set to boom.

This is courtesy multiple infrastructural and social changes happening in our country. The foremost is the explosion of smartphone ownership which has put a smart TV screen in the hands.

Changing Media Consumption

Over the next decade, over two dozen well-funded video and audio OTT platforms will fight amongst themselves and with the existing 900 TV and 360 radio stations in India for the consumers time and money, and the weapon of choice in this war will be Content.

Though theoretically speaking, the platforms can create content themselves, but in reality, the sheer volume and quality ofcontent will ensure that most platforms work with high-quality Content Creators

Films

The last few years have been favorable for the Indian film industry with the growth coming not only from domestic box-office collections but also overseas theatrical releases and escalation in satellite rights values. Indian consumers have also taken to online video viewing in big way.

As per E&Y, the country is expected to become the second largest online video viewing audience globally.

With its decade-old experience in industry, years of creating hit TV series, proven track record of making high-concept tight- budgeted films in large numbers, existing relationships with leading digital platforms, TV channels and film production studios, across all Indian languages, CPML is uniquely placed in the Content Creation ecosystem, both in audio and video.

Add to this the companys strength in product development, marketing, investments in data analytics and 30k+ strong retail network, and you get the most unique Content Company in India.

CPML is pinning its growth ambitions on 3 pillars:

Developing an OTT platform, creating new IP, and the direct-to-consumer business.

This exponential growth of video consumption over digital media has encouraged the entry of large global digital video players by launching their platforms.

To gain a foothold in Indias highly competitive OTT segment, there is a frenzy among the global players to sign content licensing deals with local content makers to expand their content library. They are investing heavily in original film contentto meet the audience demands.

To capitalize on this growing video boom, CPML decided in 2020 to launch into the promising business of Digital Films underthe subbrand, WOWPLEX. WOWPLEX is a fully OTT Platform that will aimed at the growing digital-first audiences.

The focus is on talent discovery, methodical decision-making in story selection, transparent processes and profit-sharing with talent as well as keeping line production fully in - house to prevent budgetary overruns. Some of the Blockbuster movies poster is presented here.

OTT on an uptrend post-digitization

The digitalization of the media and entertainment industry has been driven by changing consumer behaviour and expectations, especially among younger generations who demand instant access to content, anytime, anywhere. A combination of demographic, consumer and technology trends is dramatically remodeling the media landscape. From buyinga newspaper to opening a news app on your tablet, from renting a DVD to streaming your favorite television series on a smart TV, from buying a cookbook to getting customized recipe suggestions on your smartphone, its undeniable that the digital transformation of the media industry has already begun.

ONLINE VIDEO MARKET ANALYSIS

Growing mobile and smartphone penetration has boosted adaptation of online video viewing in India. Online video streaming market is driven by increasing smartphone, affordable data charges and availability of creative video content.

According to the Media and Entertainment Outlook 2020, India is likely to emerge as the worlds sixth largest OTT (over-the-top) streaming market by 2024. The market is expected to post a CAGR of 28.6% over the next four years to generate revenue worth US $2.9 billion.

According to a Media Partners Asia report, Indias online video market is likely to post a CAGR of 26% to reach US $4.5 billionby 2025. The report anticipates the SVoD (Subscription Video on Demand) market to accelerate at a 30% CAGR and reach US $1.9 billion by 2025.

India is at the forefront of the global digital revolution.

Our Company “City Pulse Multiventures Limited” desirous to enter into an online digital media service as there is surge in Digital Media segment of the media and entertainment industry in the real world. The company has launched an OTT Platform named as “WOWPLEX”. The company has also intimated to the Stock Exchange about the same.

Prime factors of OTT Platform

Government Recognition/Support to OTT Platform aiding to Industry growth:

Extreme demand in the Digital audio-visual content requires the authorities to include and formulate rules and regulations under the broadcasting including films and web shows on over-the-top (OTT) streaming platforms, as well as news and current affairs on online platforms, have been brought under the Ministry of Information and Broadcasting in November, 2020.

The Government of India has supported Media and Entertainment industrys growth by taking various initiatives such as digitizing the cable distribution sector to attract greater institutional funding, increasing FDI limit from 74 per cent to 100per cent in cable and DTH satellite platforms, and granting industry status to the film industry for easy access to institutional finance.

National Digital Communications Policy-2018- Both the telecommunications and the M&E sectors are part of the union governments Make in India plan and therefore were given special attention. In September 2018, the government released the National Digital Communications Policy-2018 (NDCP- 2018) catered towards the establishment of "ubiquitous, resilient and affordable digital communications infrastructure and services”

Its key objectives include:

1. providing universal broadband connectivity at 50 Mbps to every citizen

2. providing 1 Gbps connectivity to all gram panchayats by 2020 and 10 Gbps by 2023

3. ensuring connectivity to all uncovered areas

4. attracting investments of US$100 billion in the digital communications sector

5. training one million manpower for building new age skills

6. expanding the Internet of Things (IoT) ecosystem to five billion connected devices

7. facilitating Indias effective participation in the global digital economy.

Digital Security and Ethics:

There are also rising expectations from the consumers about what platforms should be doing in terms of content moderation. Theres another powerful force acting as a spur to regulation: consumers growing societal awareness manifesting itself in rising demand for values and concepts such as social justice, content moderation, safe digital spaces,and diversity and inclusion. Across the world, consumers have rising expectations surrounding environmental, social andgovernance (ESG) issues and, especially, concerns over online harassment and data privacy.

According to a survey Industry expert professionals, 2021 digital and ecosystem report found that 76% of consumers globally think sharing their personal information with companies is "a necessary evil,” and 36% are less comfortable sharing their information now than they were a year ago.

Regulation of OTT Platforms and other social media intermediaries:

Digital platforms in India have been unregulated, having no specific regulatory framework barring the provisions of the ITAct that they are subject to. Through several case laws and consultation

Papers and self-regulation codes formulated in the recent past, several attempts have been made to understand the needfor and method of regulating digital content. Attempts were made by OTT players towards developing a more transparentsystem of selfregulation.

MEITY and the Telecom Regulatory Authority of India (TRAI) maintained their positions of having no control over online content while the courts established the capacity of the IT Act to regulate this space. Courts have held that actions againstOTT players would be taken under (a) Section 69 of the IT Act which includes direction for interception, monitoring or decryption of information, blocking of content etc.; (b) Sections 66A and 67B of the IT Act that prescribe the punishment for offences such as sending offensive messages through communication service, publishing or transmitting obscene material in any electronic form.

Future Outlook

As we look ahead to 2025, the outlook for E&M, although challenging, remains essentially positive. The powerful shift todigital behaviors will provide a strong boost to global growth in these industries for the next several years. And as companies race to meet consumers where they are with an ever-expanding range of products, services and experiences,the E&M industries will grow more pervasive, more immersive and more diverse.

But in many instances, the growth?and hence the rewards?will be asymmetrical. Just as the economic and health recoveries from COVID-19 will not be equally distributed around the globe, there will be a significant unevenness in the prospects for individual E&M sectors and for companies that focus on particular geographic markets. Even in the areas thatoffer the most compelling topline growth, such as video streaming, the basis of competition is likely to change dramaticallyover the coming years. And all the while, the social, political and regulatory contexts in which all companies operate will continue to evolve in unpredictable ways.

All of which means that sitting still, relying on the strategies that created value and locked up market share in the past, willnot be the most effective posture going forward. The world is beginning to emerge from the painful shared experience of the pandemic. Amid destabilizing power shifts, those who lean in to the changes, probe the data and seek deep insights from their customers, coworkers and collaborators will maintain their balance?and be well placed to reap their fair share of future growth.

The Company "CPML" future prospects are very high, as it had aiready launched OTTPiatform named as "WOWPLEX" which wiii soon be coming with many Web series, movies, short stories and etc.

ENVIRONMENT, SOCIAL & GOVERNANCE Our Thoughts and roadmap for implementation:

Your company had already started 2 screens at iskcon circle, SG Highway, Ahmedabad and further company is going to start 3 screens at Khokhra, Maninagar in Ahmedabad.

Company will develop weekend villas club & resort project at Matar, Kheda, Ahmedabad and with the association with luv kush school of education at Matar, Kheda will conduct events for promotion.

In future years as per amendment in object clause of the company. The company will Develop & finalize solar park at Matar Kheda.

ESG incorporation has emerged as a tool for businesses to become resilient and remain successful over a long period of timealong with promoting sustainable development for all. CPML understands the extent of impact its business has on the globalcommunity and recognizes its duty to conduct business in a socially responsible manner.

Towards this, the principles of ESG incorporation in a businesss philosophy act as a guide through which an organization can enhance its ability to conduct business with transparency and efficiency.

Environmental, Social, and Governance (ESG) aspects refer to the three central factors in measuring the sustainability andsocietal impact of a company or business.

Opportunities and Threats

In theory, launching an OTT platform seems fairly simple. You can set up a website, purchase some video management software, and start uploading content. In reality, however, it is much more complex.

There are several challenges that you need to address for a successful OTT platform. For starters, the viewer wants a personalized experience. This can be in terms of suggested movies, TV shows, and other content to watch.

Then, there is the matter of subscriptions. How can you make the purchase process easier and more seamless? How can youmake it so that the subscription renews automatically?

You also need to ensure that the platform is secure. You must protect the content from piracy, and at the same time, youneed to ensure that the users data is safe.

All of this is while ensuring that your video content is as accessible as possible across all devices and platforms.

Adequacy of Internal Control System

To provide reasonable assurance that assets are safeguarded against loss or damage and that accounting records are reliable for preparing financial statements, management maintains a system of accounting and controls including an internal auditprocess. Internal controls are supported by management reviews.

The Board of Directors have an Audit Committee that is chaired by an Independent Director. The Committee meets periodically with Management, Internal Auditor, Statutory Auditors to review the Companys program of internal controls,audit plans and results, recommendations of the auditors and managements responses to those recommendations.

Human Resources Development/Industrial Relations

Human resources are valuable assets for any organization. The employees of the Company have extended a very productive cooperation in the efforts of the management to carrying the Company to greater heights. The Company is giving emphasisto upgrade the skills of its human resources and continuous training down the line is a normal feature in the Company to upgrade the skills and knowledge of the employees of the Company.

Cautionary Statement

The Statement in this Management Discussion and Analysis report, describing the Companys outlook, projections, estimates, expectations or predictions may be “Forward looking Statements” within the meaning of applicable securities laws or regulations. Actual results could differ materially from those expressed or implied

CAVEAT

This section of the Annual Report has been included in adherence to the spirit enunciated in the Code of Corporate Governance approved by the Securities and Exchange Board of India. Shareholders and Readers are cautioned that in the case of data and information are external to the Company, though the same are based on sources believed to be reliable, norepresentation is made on its accuracy or comprehensiveness. Further, though utmost care has been taken to ensure thatthe opinions expressed by the management herein contain its perceptions on most of the important trends having a material impact on the Companys operations, no representation is made that the following presents an exhaustive coverage on andof all issues related to the same. The opinions expressed by the management may contain certain forward-looking statements in the current scenario, which is extremely dynamic, and increasingly fraught with risk and uncertainties. Actual results, performances, achievements or sequence of events may be materially different from the views expressed herein. Readers are hence cautioned not to place undue reliance on these statements, and are advised to conduct their own investigation and analysis of the information contained or referred to in this section before taking any action with regard to their own specific objectives. Further, the discussion following herein reflects the perceptions on major issues as on date and the opinions expressed here are subject to change without notice. The Company undertakes no obligation to publicly update orrevise any of the opinions or forward-looking statements expressed in this report, consequent to new information, future events, or otherwise

On behalf of Board of
City Pulse Multiventures Limited
Sd	Sd
Arpitkumar Rajnikant Mehta	Kush Arpit Mehta
Managing Director	Director
DIN:00213945	DIN:09120698
Date: 03/09/2025	Date: 03/09/2025
Place: Ahmedabad	Place: Ahmedabad