Den Networks Ltd Management Discussions.


The global economy, which was expected to continue its expansionary momentum in 2018, actually witnessed a marginal pullback in speed during the year with economic activity softening especially in the second half of the year. Impact of trade tensions, reducing business confidence, tightening financial liquidity with volatility in energy and commodity markets,and specific issues in major economies affected the growth thrust of world economy. Effects of these dampeners coupled with moderating consumer demand and policy uncertainties are likely carry forward the downward trend in global economic growth for the years 2019 and 2020.


Indian economy maintained its position as the fastest growing large economy in the world during the first 9 months of fiscal year 2018-19. The Central Statistical Office (CSO) has estimated the GDP growth for 2018-19 to be 7%. The corresponding Gross Value Added growth figure was estimated as 6.3% vis--vis 7.3% in 2017-18. As visible in the quarterly trend of 8% GDP increase in Q1, 7% in Q2 and only 6.6% expansion in Q3, the economy was hit hard especially in the third quarter of 2018-19 due to oil price spike, currency devaluation and credit crisis triggered by IL&FS (a major Non-Banking Financial Company) default. Headline inflation marker (i.e. Consumer Price Index or CPI) for the year 2018-19 was expected to be a benign 3.4%, as the CPI showed a continuous declining trend from July 2018 to January 2019. The monetary easing, softer oil prices, recovering credit markets, improving investments and burst from election related spending in Q1 2019-20, are expected to hasten the pace of economic activity. However, overhang of weak global economy and low credit ofitake with muted private investment will act as a dampener. This is reflected in only moderately higher growth projections than 2018-19 for 2019-20 by IMF (7.3%) and RBI (7.2%).

technology is bringing about in the Media & Entertainment space is today seen almost in parallel across the developed and developing world. India, one of the leading high growth markets in the world M&E industry, is also experiencing the digital convergence and increasing technological sophistication across all segments of the M&E industry. One of the key outcome trends of these is the personalization of screens brought about by the exponential pace of penetration of mobile and mobile broadband in the country. The Indian M&E industry in 2018 grew at a marginally faster clip of 13.4% over 2017, in comparison with an increase of 12.8% in the previous year over 2016. Overall size of the industry touched Rs. 1.67 trillion (or US$ 23.9 billion) in 2018 and is expected to continue to expand at a rate faster than the economy in near future. It is projected to growth at CAGR of 12% from 2018 to 2021. Estimated size for 2019 is Rs. 1.89 trillion, a growth of 12.7% over 2018. While Television remains the largest segment, Online Gaming and Digital Media were the top two fastest growing segments within the Industry.

Segment 2017 2018
Size in Rs. billion
Television 660 740
Print 303 306
Films 156 175
Digital Media 119 169
Animation and 67 79
Live Events 65 75
Online Gaming 30 49
Out Of Home 34 37
Radio 29 31
Music 13 14
Total 1,476 1,674

Major trends in the Indian M&Eindustry that are relevant to growth of subscription and Television industry are as follows:

n In the traditional revenue streams, Advertising revenues continued their higher pace of growth vs. Subscription revenues in 2018. From a contribution of 50.8% in 2017 to the total revenue from traditional streams, Advertising contributed 51.2% in 2018. This tilt is expected to further grow in favour of Advertising to 52.4% by 2021.
n Worldwide value creation is being driven by ‘Direct- to-Customer capabilities, which is built on the base of proliferation of smartphones / personalized digital screens. Hence, many media corporations have launched or are in the process of launching their own Digital OTT services. For e.g. Hotstar already launched by Star India vs. Disney+ to be launched by Walt Disney globally.
n This trend is being replicated in India as Digital Subscriptions revenues grew by 262% in 2018 to reach Rs. 14.2 billion with the total paid subscribers jumping from 7.5 million in 2017 to 12 – 15 million in 2018.
n O TT content consumption will grow the fastest, but consumers are also expected to rise albeit at much lower CAGR of 6.3%.

Television Segment

In 2018, the Television segment grew at a rate of 12.12%, which was slightly less than industry average, over 2017 to reach a size of Rs. 740 billion. This was on the back of a higher jump in advertising income of 14.2% vis--vis only 10.7% growth in Subscription revenue. Advertising revenue contributed 41.2% of the total income as against 40.5% in 2017. From a total of 10,962 advertisers, 5,382 advertisers were unique to TV, and didnot advertise on print or radio. Regional advertising growth outperformed national adverting because of national brands pushing for penetration in non-metro markets after implementation of GST. Free Dish, DDs free DTH platform, attracted an estimated Rs. 20 billion in advertising revenue in 2018, however this will be affected going forward because four large broadcasters pulled out their major Hindi general entertainment channels from the network.

( Sources: FICCI Indias Media & Entertainment Sector Report 2018 and Indias Media & Entertainment Sector Report 2019 by Ernst & Young)

Television Subscriber Base

Total Indian households in 2018 were 298 million, and with a penetration of 66.1% Television owning households reached a number of 197 million. This number was 183 million in 2016, and hence the reach increased by 7.5% in 2018. Highest growth in penetration came from Bihar and Jharkhand, which have less than 30% penetration and where Indias drive towards electri_cation contributed to the increase. Similarly, the number of TV watching individuals went up by 7.2% from 780 million to 836 million in the same period.

(Sources: FICCI Indias Media & Entertainment Sector Report 2018 and Indias Media & Entertainment Sector Report 2019 by Ernst & Young)

Other performance parameters for the related to the industry were as follows:

n Share of digitized households increased by 15% over 2016 to reach a share of 88% of TV owning households. Nearly half of these were Cable owning households, thus indicating a reach of ~84% for digitization penetration in Cable.
n Overall Average Revenue Per User (ARPU) increased primarily in DAS-III and DAS-IV markets because of digitization, however DTH ARPUs were affected by a change in subscriber mix with many users moving to cheaper regional packs and lower price point of new subscriptions.

ARPU Trends

Markets 2017 2018
(Rs./ month) (Rs./ month)
DAS-I 250-350 250-350
DAS-II 200-325 200-325
DAS-III 150-225 175-225
DAS-IV 125-200 125-225

Note: This data pertains to situation prevailing before implementation of the new tariff order.

n Broadcasters share of subscription revenues increased to Rs. 110 billion, which roughly translates into 25% of share of the total ground collections and a growth of 11.1% from Rs. 99 billion in 2017.
n Average time spent per day on TV increased marginally from 3 hours, 44 minutes and 28 seconds in 2017 to 3 hours, 46 minutes and 21 seconds in 2018, translating into a total of one trillion man minutes per week spent on TV, an all-time high. However, Video consumption on digital medium is growing at a much faster rate. Average time spent by Indians on watching videos online went up from 39 minutes per day in 2017 to 52 minutes per day in 2018. This figure was only 7 minutes per day just a couple of years back in 2015.
n Viewership growth for TV was led by regional channels seen in the chart given below for change from 2017 to 2018.
n A total of 4 million households were multiple TV homes UP/ Uttarakhand, Delhi and West Bengal being the top 3 state in terms of highest incidence of multiple TV homes.
n Visible trend of price sensitive customers opting combination of Free Dish and PayTV service, where the PayTV is activated during holidays or at the time of marquee sporting events.

(Sources: FICCI Indias Media & Entertainment Sector Report 2018 and Indias Media & Entertainment Sector Report 2019 by Ernst & Young)

Internet & Broadband Services

India had a total internet user base of 604.21 million as on December 2018.This represents a growth of 35.5% over the December 2017 figure of 445.96 million. The total included broadband user base of 525.36 million and narrowband reach of 78.86 million. In terms of distribution between wireless and wired users, the numbers were 582.79 million and 21.42 million respectively.

Wireless broadband sub-segment is driving the growth in internet use base for India.

(Source: as TRAI Performance Indicators Oct-Dec 2018)

Fixed Line Broadband Services

The broadband subscriber base increased to 550.24 million by the end of February 2019 (as per Telecom Subscription Data Release on 18th April 2019 from TRAI). The total broadband connections were distributed across major segments as follows:

Mobile broadband subscriber base is growing at the fastest rate of 42.1% on the back of disruption brought in by Jio with inexpensive data tariff plans. As against this, the fixed line users went up only by 3.2% in one year. The current fixed line broadband subscriber base at 18.29 million translates into a penetration of ~6.1% of the total households in India. The top three wired broadband service providers were BSNL with 9.17 million subscribers (50.1%), followed by Bharti with 2.33 million subscribers (12.7%) and Atria Convergence Technologies with 1.41 million subscribers (7.7%).

(Source: Telecom Subscription Data Release on 18th April 2019 from TRAI)

Overall 50 Internet Service Providers (ISPs) providing broadband (wireline) service out of a total 290 wireline broadband ISPs, had a subscriber base >10,000 at the end of December, 2018. Market share of these 50 SPs is 98.04% of total broadband subscriber base.

(Source: TRAI Performance Indicators Oct-Dec 2018)

The industry is moving towards bundled plans integrating home broadband and television services. This represents an opportunity for MSOs because of their pan India reach and access tototal cable household base of 100+ million. It is an opening for the industry to tap into the rapidly growing needs of customers in terms of reliable high speed connectivity and increasing data consumption due to shift in entertainment viewing towards digital platforms (as seen in average time spent per day data in the previous sub-section).


DEN Networks is Indias leading Media & Entertainment Company engaged in providing Cable TV, Fixed Line Broadband and Content. The Company has one of the largest subscriber base amongst Cable TV players in India as it reaches households in 500+ cities across 13 key states.

DEN Broadband provides high speed broadband internet services of up to 100 Mbps speed using DOCSIS 3.0 and GPON technology, majorly in DELHI & NCR and 47 cities in 12 states in India.

Highlights of the year:

a) Reliance acquired substantial shareholding in the Company

The Board of Directors in its meeting dated 4th February, 2019 have issued and allotted 281,448,000 equity shares of Rs. 10 each for cash at a price of Rs. 72.66 per share (including premium of Rs. 62.66 per equity share to Jio Futuristic Digital Holdings Private Limited, Jio Digital Distribution Holdings Private Limited and Jio Television Distribution Holdings Private Limited (collectively referred as "New Promoters"). The Board has also taken note of transfer of 33,585,000 equity shares from Mr. Sameer Manchanda and M/s. Verve Engineering Private Limited (the existing promoters) to Jio Futuristic Digital Holdings Private Limited in terms of shares purchase agreement dated 17th October, 2018. Further, the new promoters have also acquired 57,489,612 equity shares at Rs. 72.66 per equity share through open public offer. The shareholding of the new promoters (including affiliates) has increased to 78.62% after completion of share subscription, share purchase agreement and open public offer. New promoters along with the existing promoters, referred as Promoter & Promoter Groups, collectively own 86.53% shareholding in the Company as on 05th March, 2019 .

b) TRAI Order Implementation

Telecom Regulatory Authority of India (TRAI), in March, 2017, notified the ‘New Regulatory Framework (the New Framework) for Broadcasting and Cable services. The new framework, with the objective to bring in complete transparency in giving freedom for the customer to choose the content he wants to pay and also with respect to revenue share among the stakeholders in the value chain, came into effect on 29th December, 2018. However, to provide sufficient time to subscribers for exercising their options, the Authority provided time up to 31st January, 2019. Further, TRAI issued press release on 12th February, 2019 extended the time for migration till 31st March, 2019.

DEN has launched competitive packages keeping in mind consumer preferences, affordability and competition from DTH/MSOs and successfully migrated all the consumers to either packs chosen by consumers or best fit packs of DEN.

Benefit of new tariff order will start flowing in the financial year 2019-20 in terms of:

Freedom of selection of channels.
Better transparency with respect to revenue share and competition among stakeholders in the value chain.
New pr icing mechanism is being evolved including channels which will optimise the consumer pricing.
Cable distribution Industry has become a choice subscription model which will provide consumer access to better content as competitive prices making consumer the King.

c) Awards & Accolades

DEN Networks Limited has been awarded as the"Most Outstanding MSO 2017-18" and "Outstanding MSO providing Technology & Services" in BCS Ratna Awards 2018 by Aavishkar Media Group. Mr. S.N. Sharma, CEO of DEN Networks Limited, was bestowed upon with the honour of "Most Versatile Personality of the Industry".

DEN won several laurels at the Great Manager Awards 2018 organized by People Business and The Times Group, held on 4th October18 in Mumbai. A ceremony to felicitate and recognize outstanding managers and leaders, DEN saw itself at the receiving end of much appreciation and recognition. Two of our managers, Mr. Sanjay Kumar Jain and Mr. Arjun Kadam stood out for their outstanding managerial skills and leadership pro_ciencies. While Mr. Jain won laurels in the category "Aligning Organizations Vision", Mr. Kadam won the award for "Individual Credibility"

In another glorious moment, DEN brought home laurels at the _fteenth edition of "The Indian Telly: Technical, Trade and Programming Awards 2018" presented by Adobe Inc. held at Mumbai on 28th October 2018. DEN, at this prestigious ceremony, was awarded with the title of "The Best MSO".

DEN Networks has topped the list of "Most Attractive Brands 2017" in the cable segment. ‘Most Attractive Brands is an annual study conducted by Trust Research Advisory (TRA) Research based on a primary research conducted across 16 Indian cities.

SEGMENT-WISE PERFORMANCE Cable Business Financial Highlights

R evenues of the Cable business declined in FY19 to INR 1,140 Crore from INR 1,211 Crore in previous year.

The detailed breakup of revenues was as below:

Details FY18 FY19 Variance % Contribution % Contribution
FY18 FY19
Subscription 667 673 0.9% 55.1% 59.0%
Placement 345 313 -9.3% 28.5% 27.5%
Others 199 154 -22.6% 16.4% 13.5%
Total 1,211 1,140 -5.9%

n EBITDA for the cable business dropped by 35.9% to INR 182 crores in FY19 vis--vis INR 284 crores in FY18. The detailed breakup of operating costs was as below:

Details FY18 FY19 Variance % of Total % of Total
Content 540 573 6.1% 58.3% 59.9%
Personnel 94 86 -8.5% 10.1% 9%
Other OPEX 268 268 - 28.9% 28%
Provision for 25 31 24% 2.7% 3.2%
Doubtful Debts
Total 927 957 3.2%

Broadband Business

n Broadband offering of DEN logged 904K homes passed as on 31st March 2019. During FY19, the operating cost reduced substantially because of a number of re-engineering and procurement related initiatives to optimize cost.
n The Company has invested in the broadband business increase its reach to 48 cities and a subscriber base of 116K at the end of FY19. This translates into an increase of 8.4% over previous year.
n Average ARPU for the Broadband business in FY19 was Rs. 557 as against INR Rs.632 in FY18.
Financial Highlights
n Broadband revenues marginally declined in FY19 to 67 Crore from INR 75 Crore in FY18, mainly on account of reduction in ARPU

The detailed breakup of revenues was as below:

Details FY18 FY19 Variance % Contribution % Contribution
FY18 FY19
Subscription 73 66 -9.6% 97.3% 98.5%
Activation 2 1 -50.0% 2.7% 1.5%
Total 75 67 -10.7%

•The Company was able to breakeven in terms of during FY19 on account of reduced costs. The detailed breakup of operating costs was as below:

Details FY18 FY19 Variance % of Total % of Total
Personnel 13 9 -30.8% 17.1% 14%
Other OPEX 63 57 -9.5% 82.9% 86%
Total 76 67 -11.8%


Details FY18 FY19 % Change
Total Income 1286 1207 -6.1%
Total Expenditure 1003 1024 2.1%
EBITDA 284 183 -35.6%
% EBITDA 22.1% 15.2%
PBT (before exceptional items) (6) (77)
Exceptional Items - (211)
PBT (before exceptional items) (6) (288)
PAT (17) (301)

Key Financial Highlights:

n Excluding the impact of TRAI Tariff order on the business, the growth in top-line was flattish.
n Relatively higher increase in content costs vis--vis in subscription revenue for the cable business and no corresponding decline in other costs w.r.t. impact on Cable revenue of TRAI order meant decline in EBITDA by 35.6%.
n Exceptional item of Rs. 211 crore in Q4 FY19 mainly to allowance on trade receivables and advances, and impairment of fixed assets.

Financial Ratios

Ratio FY2018-19 FY2017-18 Variance Explanation
Debtor Turnover Ratio 4.57 4.79 -5%
Interest coverage Ratio 3.11 4.21 -26% Fall in EBITDA from Rs. 278.3 crore to Rs. 182.7 crore in FY19, mainly due to adverse impact of introduction of Tariff Order by TRAI in Q4 FY19, is the key reason.
Operating Profit Margin(%) 15% 22% -30%
Total Debt/ EBITDA 2.64 1.91 38%
Current Ratio 3.39 1.03 229% Increase in equity base and total cash due to investment of Rs.2045 crore via preferential issue by Jio and its affiliates.
Debt Equity Ratio 0.18 0.60 -69%
Net Debt/ EBITDA -9.93 0.57 -1837%
Net Debt -18,138 1,591 -1240%
Net Profit Margin (%) -24% -1% 1743% In addition to the fall in EBITDA, Rs.211 crore exceptional item impacted net profit in
Return on Net Worth(%) -11% -2% 495%


The Human Resource Management function at DEN is an equal strategic partner in achieving the goals set for the organization. In order to achieve the objective of strengthening and ensuring availability of Organisational Capability to meet business challenges, and creating a welcoming and productive work environment, the HR team continued to use many successful tools and also innovated with new ideas during the year. It has also been able to guide and steer the employees through the transition in ownership to ensure no disruption in business activity.

The year witnessed talent joining from across the industry at critical roles in the Company like Internal Audit, business analyst, technical operations, etc.The year went along recognizing and appreciating star performers and showcasing them while setting benchmarks for all across different functions. Also, a few high potential stars of DEN were recognized and given leadership roles and new assignments. The ongoing initiatives that DEN continued to pursue during the year in order to achieve the HR objectives are as follows:

1. DEN Academy: DEN Academy, where the gainer and trainer are amongst the employees of DEN, focused on providing more extensive trainings to employees around functional, technical and behavioural areas. Few of the sessions successfully carried out during the year were General Banking, Corporate Finance, POSH, GST, etc.
2. " Transcend": Transcend, a <monthly/quarterly/periodic> digital magazine, is receiving a better and a more engaging response from employees this year.
3. Comfort checks and Exit interviews: Are being successfully used to analyse the issues the employees are facing and deal with them strategically.
4. DNA (Define, Nurture, Apply): The leadership team well recognizes that employee motivation and engagement is beyond just the compensation and hence to create fulfilling employee experiences, we made sure that employees were spoken to and addressed from time to time through various direct and indirect mediums. HR team structured the interactions by organizing DNA meetings – one on one with employees or by meeting them in groups to address their concerns or just by hearing them out.

Keeping up with ensuring continuous training and engagement of employees, HR stepped further into the realm of employee job satisfaction by providing various platforms to the employees for addressing their grievances, suggestions and ideas:

1.AIM (All Ideas Matter): This is a platform for employees wherein they can drop in their suggestions and grievances in the AIM boxes. Relevant and feasible ideas are shortlisted and put up for a vote and the most popular idea is presented to the management for further implementation.

2.Cross Functional Training Sessions (CFT): CFT targeted at the Operations team, are a blend of training sessions paired with addressing concerns of the employees. Members of the Operations team are divided in various groups and are first, addressed by the Technical team, to apprise them of the upcoming products and innovations. Post the training session, the attendees bring forth their day-to-challenges and issues in their tasks that they face with other departments. HR then brings forth respective SPOCs from the concerned departments who address and note the concerns of the Operations team and vice versa. A strategic resolution is then worked upon by HR in tandem with their line of thought.


A leading player among cable MSO and DTH players in India.
Backing of leading mobile broadband player with nearly 330 million mobile subscribers, and almost all availing mobile broadband services.
Convergence-ready product portfolio offerings of Cable and FLBB.
Pioneer in the industry with an experienced management team and capable workforce with many firsts to its credit, including leadership in roll-out of cable TV digitization in Phase 1 and Phase 2 markets.


Future growth will be from Phase 3 and 4 markets, suffer from poor infrastructure.
o Pushing upnot only the costs of operations, but CAPEX for increasing reach.
o Uncertain penetration potential due to wider presence of mobile broadband.
Need to continuously upgrade and expand the infrastructure leading to high investments.
Complex corporate structure.
T V penetration in the country is less than 70%, thus presenting a significant opportunity for further growth through increased penetration.
Enhancing monetization significantly across markets and increasing ARPU; one of the way being increase of HD penetration across markets, especially DAS 1 and 2
Stabilizing impact of TRAI order on Cable TV subscription revenues and then leveraging the potential for growth because of this order
Leverage Cable TV reach and infrastructure to cross-sell fixed line broadband services in India, which continued to have very low penetration of ~6.5% even in FY19
I ncreasing competitive intensity with entry of new players in Cable TV services and in alternative platforms such as OTT etc. Similarly, telecom players and other MSOs in FLBB space.
R elative high growth of digital and social media advertising vis--vis TV, indicating slow but steady decline of traditional TV broadcasting model in the near future.


DEN has laid down Standard Operating Procedures (SOP) for all critical business processes, which have defined internal controls to ensure optimal business performance, avoidance of risks, and adherence to prescribed norms and SOP. An escalation matrix is published for any operational, legal, HR or administrative issues. The Company also adheres to and complies with all the prescribed norms as specified under Company laws, industry regulations and securities market rules. DEN has also appointed reputed statutory and internal audit firms for conducting regular audits of its business functions and books of accounts. Various committees, including the audit committee, of the Board of Directors meet every quarter and on a need basis Jio to thoroughly oversee and monitor their areas of mandate. The Company also has a defined Risk Management Framework as TV approved by and implemented under the guidance of its Board of Directors.


In addition to the generic macro risks related to the economic environment, DEN is also exposed to risks that are peculiar to the Cable & Broadband segment of the Media & Entertainment industry. The nature of such risks, potential impact and mitigation strategies adopted by the Company are captured below.

1.Changing Customer Preferences

Customers content consumption patterns seeing following shifts:

a. Viewing on personalised digital screens, mainly mobiles
b Access through cheap wireless data plans .
c Use of OTT platforms to consume traditional TV content . and edgy, new age content
n Decline in viewership and subscriptions for Cable TV
n Decline in penetration rate of fixed line broadband

Mitigation Approach

n TV as a medium has a significant scope for further in India. Hence, the risk of de-growth in Cable TV business is mitigated through increasing penetration and also acquiring customers from competition through superior service-based offerings.
n In short term, cheap wireless data plans will continue to significant risk. However, on a longer term basis, these will expand the demand for fixed line broadband by increasing the need for high and reliable internet speeds to consume rich content. Focus of the Company is expand its presence and leverage its Cable TV base to address unpenetrated markets.
2. Technological Obsolescence
R apid advances in technology may make infrastructure obsolescent. Customer expectations of speed, reliability, reach and capacity keep going up. Hence, requiring more frequent upgrades on network infrastructure. Obsolete or overloaded network may also lead to frequent network disruptions.
n Increase in CAPEX needs and impact on return ratios technology investments are not well strategized.
n Loss of business to competition, which may offer quality service and cheaper packages.
Mitigation Approach
n The Company has invested in the latest technology infrastructure for its broadband and cable business assuring high speed and near 100% uptime.
n Partnering with LCO/LMO & franchising for
o Exclusive access to customers in a particular locality/ society
o Lower the CAPEX investments
n Over the past months we have worked hard to upgrade our infrastructure to world-class standards.
n After these upgrades, our LCO partners will now be able to offer the largest bouquet of High-Definition channels to customers with better features, reliability and customer experience than even DTH.


The Company is in the business of providing a platform for access to content/ data. With the advances in technology, there are now various types of alternative platforms, such as DTH, internet TV, mobile-based internet plans, wireless ISPs, etc. which are competing in the market for same customers in addition to other MSO/FLBB players with a similar platform. OTT apps, including those of TV broadcasters are also competing through disintermediation.

n Decline in viewership and subscriptions for Cable TV business
n Decline in penetration rate of fixed line broadband services
Mitigation Approach
n Leveraging last mile connect of the LCO/ LMO to acquire competitive advantage over other platforms and penetrate deeper into the market.
n Promote high speed and reliability of FLBB vis--vis mobile internet along with offering competitive tariffs.
4. Regulatory
Given that the nature of service provided by the Company is similar to a utility, regulatory oversight is an integral part of this industry. Across the two business segments, DEN will be directly impacted by relevant policy and regulation changes initiated by the Information & Broadcasting Ministry, Telecom Ministry, TRAI, etc.
n Impact on competitive advantage vis--vis alternative platforms.
n Impact on pricing and tariff plans, which may lead to decline in revenue and/or profitability
n Increased cost of servicing and infrastructure investments or penalties in case of non-compliance
Mitigation Approach if
n Proactively anticipate regulatory changes and pursue collective bargaining with regulators as part of industry efforts to influence such policy and regulatory changes.
n Ensure the timely compliance to avoid any penalties.
n Increase diversity of business portfolio to avoid a huge impact on the Company due to impact of regulatory changes on a single business.


Certain statements contained in this section may be ‘forward-looking statements within the meaning of applicable laws and regulations. Such statements involve a number of risks and uncertainties that could cause actual performance to differ materially from that suggested or implied in forward_looking statements. Major developments that could affect the Companys operations to cause such a difference include factors such as risks inherent in Companys growth strategies; general economic & business conditions in India and other countries; regulatory changes and its ability to respond to them; its ability to successfully implement the strategy, its growth & expansion plans; technological changes; exposure to political risks; unanticipated turbulence in interest rates, foreign exchange rates, etc.; changes in domestic and foreign laws, regulations and taxes; changes in industry competition, and many other factors. The following discussions and analysis should be read in conjunction with the Companys financial statements included herein and the notes thereto. The Company may, from time to time, make additional written and oral forward looking statements to shareholders. The Company does not undertake to update any forward looking statement that may be made from time forward to time by or on behalf of the Company.