Hathway Cable & Datacom Ltd Management Discussions

GLOBAL ECONOMY OVERVIEW:

Global growth is projected at 3.3% both in 2025 and 2026, below the historical (2000-19) average of 3.7%. The forecast for 2025 is broadly unchanged from that in October 2024 World Economic Outlook (WEO), primarily on account of an upward revision in the United States offsetting downward revisions in other major economies.

Global headline inflation is expected to decline to 4.2% in 2025 and to 3.5% in 2026, converging back to target earlier in advanced economies than in emerging market and developing economies.

Medium-term risks to the baseline are tilted to the downside, while the near-term outlook is characterized by divergent risks. Upside risks could lift already-robust growth in the United States in the short run, whereas risks in other countries are on the downside amid elevated policy uncertainty. Policy-generated disruptions to the ongoing disinflation process could interrupt the pivot to easing monetary policy, with implications for fiscal sustainability and financial

Managing these risks requires a keen policy focus on balancing trade-offs between inflation and real activity, rebuilding buffers, and lifting medium-term growth prospects through stepped-up structural reforms as well as stronger multilateral rules and co-operation.

Where inflation is proving more sticky, central banks are moving more cautiously in the easing cycle while keeping a close eye on activity and labour market indicators as well as exchange rate movements. A few central banks are raising rates, marking a point of divergence in monetary policy.

Global financial conditions remain largely accommodative, again with some differentiation across jurisdictions. In emerging market and developing economies, equity valuations have been more subdued, and a broad-based strengthening of the US dollar, driven primarily by expectations of new tariffs and higher interest rates in the United States, has kept financial conditions tighter.

In emerging market and developing economies, growth performance in 2025 and 2026 is expected to broadly match that in 2024. With respect to the projection in October, in 2025 in

India Growth projected to be solid at 6.5% in 2025 and 2026, as projected in October and in line with potential.

https://www.imf.org/en/Publications/WEO/Issues/2025/04/22/ world-economic-outlook-april-2025

INDIAN ECONOMY OVERVIEW:

Indias economic outlook for 2025 reflects cautious optimism, amidst the backdrop of persisting external headwinds. On the positive side, consumer spending is expected to gain momentum, driven by an improved outlook for the agriculture sector, which is likely to bolster rural consumption and sentiment in the first half of the next fiscal year. Food inflation, which has remained elevated for over a year and strained household budgets, particularly for low and middle-income urban families, is expected to ease. As inflationary pressures recede, urban consumption is anticipated to witness a recovery, especially for low-ticket and discretionary items.

On investment front, the governments focus on capital expenditure is expected to remain a key growth driver in the year 2025-26. Investments in infrastructure and allied sectors such as roads, housing, logistics, and railways are anticipated to further economic momentum. Additionally, the services sector, particularly hospitality, real estate, health, and education, is expected to contribute to creation of fresh capacity. .

Nonetheless, downside risks remain on the horizon. The private capital expenditure cycle is expected to stay subdued, with a cautious outlook limiting large-scale capacity additions.

Factors such as geopolitical uncertainties, uneven domestic demand, oversupply from China have kept investors on the edge.

However, with deleveraged corporate balance sheets, capacity utilization rates holding up, and uptick in demand, the momentum in private investments could build.

Merchandise exports are projected to face persistent challenges, constrained by weak global demand, potential tariff wars, and ongoing geopolitical tensions. While services exports are expected to perform better than merchandise exports, uncertainties stemming from US trade policies and financial market volatility could pose additional risks.

Challenges and Opportunities for India

There is a possibility of short-term disruptions through channels like exports, foreign capital flows, and input costs for the US trading partners including India.

The likelihood of tax cuts (personal and business) could increase the US fiscal deficit, while higher tariffs and stricter immigration norms could push up labour costs and inflation. The Federal

Reserve, in response, could cut the policy rates by less than what was anticipated. This may reduce capital inflows into emerging markets, including India, causing Rupee fluctuations.

Trade tensions, including a potential US-China trade conflict, could disrupt supply chains and raise input costs in the short term. However, there is expectation that the US will take a calibrated approach towards India.

Nonetheless, India is poised to benefit from global supply chain diversification away from China. Its strategic position as a manufacturing hub could attract foreign direct investment in sectors like semiconductors, electronics, and automotive components. Targeted industrial policies and sector-specific strategies will remain critical to seizing these opportunities. downside risks. Indias The energy sector holds promise, with the revitalized US-India

Strategic Clean Energy Partnership (SCEP) emphasizing renewable energy, energy efficiency, and sustainable fuels. India could also benefit from lower global oil prices as production increases. Strengthened collaboration in civil nuclear energy will further enhance ties.

To address risks and unlock opportunities, India should evaluate reducing tariffs on select and specific US imports while ensuring revenue stability and minimal domestic impact. Diversifying export markets and leveraging ongoing trade negotiations will be critical to enhancing trade resilience.

Also, development of high-quality industrial clusters with robust backward and forward linkages is essential for India to integrate into diversifying global supply chains. Complementing this effort, infrastructure upgrades and sector-specific policies can attract greater foreign direct investment (FDI).

Expanding trade and investment partnerships across agriculture, defence, energy, healthcare, and emerging technologies will foster mutual growth. Deepening collaborations in areas like artificial intelligence, clean energy, and cybersecurity will further strengthen economic and strategic ties between India and the U.S.

Source: https://ficci.in/public/storage/SEDocument/20712/DSyNdso0h GSIZ4J1XdRnQdM8FQ0nUh3ZeE7Zc4lz.pdf

Future outlook

India is expected to grow between 6.5% to 6.8%. This will be followed by growth between 6.7% and 7.3% in fiscal year growth 2025 to 2026, with significant projections in the subsequent year will likely be tied to broader global trends, including rising geopolitical uncertainties and a delayed synchronous recovery in the West than anticipated.

.

Disruptions to global trade and supply chain due to intensifying geopolitical uncertainties will also affect demand for exports. Despite these challenges, we will continue to see the difference between actual GDP and no COVID-19 levels progressively narrowing as growth picks up pace.

INDIAN MEDIA & ENTERTAINMENT (M&E) SECTOR OVERVIEW:

Indian M&E sector continued to grow in 2024, albeit at a relatively modest 3.3%; it grew by 81 billion to reach 2.5 trillion. While the sector was 30% above its pre-pandemic 2019 levels, television, print and radio still lagged their 2019 revenues.

Digital media overtook television for the first time to become largest segment, contributing 32% of M&E sector revenues.

We expect the M&E sector to grow 7.2% in 2025 to reach 2.68 trillion (US$ 31.6 billion), then grow at a CAGR of 7% to reach

3.07 trillion by 2027.

INDIAN M&E SECTOR GREW 3.3% IN 2024 TO CROSS 2.5 TRILLION:

Segment	2019	2022	2023	2024	2025E	2027E	CAGR 2024 – 2027E
Digital Media	308	571	686	802	903	1104	11.20%
Television	788	726	711	679	676	667	(0.60%)
Print	296	250	259	260	262	267	0.90%
Online Gaming	64	222	236	232	260	316	10.80%
Filmed Entertainment	191	172	197	187	196	213	4.30%
Animation and VFX	95	107	114	103	113	147	12.50%
Live Events	83	73	88	101	119	167	18.20%
Out of Home Media	52	48	54	59	66	79	10.20%
Music	15	46	54	53	60	78	13.40%
Radio	31	21	22	25	27	29	6.60%
Total	1923	2237	2422	2502	2682	3067	7.00%
Growth		16%	8%	3%	7%	14%

All figures are gross of taxes ( in billion) for calendar years \ EY estimates

SHAPE OF THE FUTURE

The M&E sector will grow by 564 billion to reach 3.1 trillion in 2027

THE M&E SECTOR :

The Indian M&E sector will grow at a CAGR of 7% and add 564 billion in three years.

New media will provide 68% of this growth, followed by live events (12%) and animation and VFX (8%).

Barring unforeseen situations, we expect all segments to grow or remain flat, except liner television, so long as India real GDP grows 5% or more.

Advertising will comprise 52% of total sector revenues in 2027, while share of subscription will reduce to 35% by 2027.

Television

The future of TelevisionPay TV will continue to gain audiences, but will also start switching to smart TVs as wired (or similar). Both the telcos and the MSOs will play an important role as they aim to increase ARPUs, through bundling broadband with linear TV services, as well as by bundling content to drive adoption of Cable Television (CATV).

Pay TV is expected to fall to 95 million homes in the country, as more large screen viewership moves to Connected TVs.

Free TV will remain and expected to grow to 53 million homes. As Indias per capita income increases and the lower middle class will grow and more people will be able to buy a television set. Currently, of over 320 million Indian households, around 100 million do not have a TV, and growth in per capita income will help those homes enter the TV segment.

Decrease Total

Growth in Indias population will increase Indian households from 330 million in 2024 to 338 million till 2027. Further, the middle-class population is projected to grow substantially, reaching 715 million in 2030-31 and 1.02 billion in 2046-47. This will, in turn, increase the demand for TV sets.

Connected TV homes are expected to increase to 48 million by 2027, as broadband access in the home increases steadily. India has seen its wired broadband increase from

32 million to 46 million during the last two years.

• The key challenge posed by connected smart TVs is that broadcasters will now compete against social media and digital native platforms as well for share of time on the large screen.

Linear pay TV is here to stay

Linear TV will grow when TV dark homes come onboard and when free TV audiences upgrade to pay. In order to address the opportunity and reduce television dark households, a number of initiatives will need to be evaluated, such as: a) Creation of lower priced FTA packs b) Differential pricing and bundling for rural markets, in agreement with the regulator c) Reactivation of the millions of inactive set-top boxes through incentive schemes d) Creating relevant content baskets for underpenetrated markets

The television segment has witnessed some interesting, yet dichotomous developments in recent times. Although the number of pay TV subscribers continue to decline, the overall number of TV viewers continues to grow. While advertising shrunk, the number of TV screens are growing and the overall segment is expected to have a positive outlook in the coming times. Viewership of connected TVs would continue to grow and proliferate with the increase in broadband and 5G.

	2024	2027E	2030E
Pay TV	111	95	81
Free TV	49	53	57
Connected TV	30	48	76
Total	190	196	214

EY estimates \ millions of subscriptions

Future outlook

Television households will grow due to the following reasons:

• The television has always been a way for families to spend time together and build a discuss stories and characters. investments We expect broadcasters to make significant in commissioning and promoting ‘family content to bring back group viewing, on linear and CATV.

• This will give rise to a new category of production houses and talent, across geographies.

We expect total TV subscriptions to grow to 214 million by 2030, driven by a 1% CAGR in Indian households and increasing per capita income.

• By 2030, there would be three large and important segments Pay TV, Free TV and Connected TV, and broadcasters will need to cater to them all.

• Once OTT bundling picks up scale, and pricing parity between OTT and linear TV is more pronounced, the impact on TV homes could be faster.

In effect, CATV would be the largest distributor of content on large screens by 2030, but broadcasters would be competing with not just each other on the CTV platform, but also social media, short video, gaming,etc., all of which underlines the need for diversification of products and re-engineering organizations towards audience segments.

Growth Required innovation and Incentives

• Multi-window innovation, i.e., packaging and pricing across the three TV consumer segments (Pay TV, Connected TV,

Free TV), will be implemented to provide audiences with replace more content choicesIncrease flexibility channels within bundles in order to prevent churn.

• TV content distributed through OTT platforms could be placed behind a paywall, and not be provided free of cost online along with its TV broadcast, except for those who have subscribed to the channel on TV, or as delayed catch-up viewing.

• Public-private partnership can enable TV dark homes to buy televisions through incentives such as: o Free distribution of sets under government programs in border/ sensitive areas o Subsidized distribution of sets and STBs o Creating a low-cost India TV plus receiver product o Increased adoption of HD hardware needs to be incentivized to enable premiumization

INDIAN BROADBAND INDUSTRY:

Subscriptions	Dec-22	Dec-23	Dec-24
Wired Broadband	32	32	46
Wireless Broadband	800	866	899
Total	190	196	214

With over 945 million broadband subscriptions, India has the second largest broadband subscriber base in the world, after China.

Around 5% of Indian households had a wired broadband connection

• According to data published by Ookla in December 2024, India ranked 23^rd in the world for mobile speeds and 93^rd for fixed broadband speeds, with the median mobile internet connection speed via cellular networks at 103.75

Mbps and the median fixed broadband connection being 62.62 Mbps

• At 46 million wired broadband homes, the scope for large-screen viewership using is close to that of DTH, cable and Free TV

Narrowband subscriptions declined by 18%, while broadband usage increased by 4% between December 2023 and December 2024

Urban internet subscriptions comprised 58% of all internet subscriptions

• Rural subscriptions grew by 4% between December 2023 and December 2024; rural subscriptions now being more than two-thirds of urban subscriptions, pointing to a need to create content for both these markets

• Price increases can have several implications, such as o subscriptions with low utilization being deactivated, o slower growth in internet reach and o increase in television reach and time spent

• CTV reached 50 million monthly active sets by the end of 2024

• With over 100 million non-smart TVs in the country that will be subsequently upgraded to internetconnected devices, there remains ample room for growth in CTV reach, given that most TV sets sold in India now can connect to the internet, and are available for under 10,000 on e-commerce platforms

Online consumption increased

Indias low data prices are the key reason for growing telecom internet user base, and consequently, the growth being witnessed across online entertainment,audio streaming, gaming, social media, etc.

Indians spent 4.95 hours per day on phone apps in 2024, a 3.1% growth over 2023.

In aggregate, India spent more than 1.1 trillion hours on digital platforms, higher than any other market worldwide, which shows the immense potential for ad funded products and branded content.

Average time spent on social media and Entertainment by the Indians is around 69%.

India witness a 27% increase in active smart TVs in 2024 with an average of over 40 hours per month of current consumption.

Future outlook

Digital Revenue Expected to grow to 1,104 billion by 2027

We estimate that the digital segment will be the first M&E segment to cross 1 trillion in 2026, and will grow to 1.1 trillion by 2027, at a 11% CAGR, reflecting the changes in consumption patterns being witnessed due to growth in connected televisions, mobile phones and affordable broadband connectivity.

By 2027, digital media will constitute 36% of the M&E sector, up by 4% from its 32% share in 2024.

• Digital advertising is projected to grow from 700 billion in 2024 to 957 billion by 2027, maintaining a strong 11% CAGR driven by innovation and performance advertising.

• The digital subscription revenue is forecasted to grow at a CAGR of 13% from 2024 to 2027, reaching 147 billion by 2027 on the back of more Indian households paying for SVOD products.

COMPANY OVERVIEW

Hathway Cable and Datacom Limited (the Company or Hathway), a subsidiary of Reliance MDA Group, is a vibrant

Organisation engaged to provide fixed line services through ISP and CATV to millions of homes across the Pan India. As one of the leading fixed line

HCDL provides uninterrupted and rapid-speed connectivity through its fast-growing ISP business along with OTT offering, The first Indian MSO to launch GPON FTTH and has 6.3 Mn Home passes and 1.06 Mn subscribers base and approximately 85,000 Kms of Fiber Optic Cable covered Pan India to service the customers.

Hathway Digital Limited (HDL), a wholly owned subsidiary of

HCDL, provides CATV services, which is one of Indias largest

Multi System Operators (MSOs), with 7 main head ends and a network of approximately 38,000 Kms of Fiber Optic Cable providing cable services to 4.9 Mn viewers (including through its fellow subsidiaries & JVs) pan India and reach to 700+ towns differentiator, demonstrating and adjoining areas.

HCDL also delivers both CATV and Broadband services in certain parts of the country through its associate company, GTPL Hathway Limited.

BROADBAND BUSINESS : progress in refining our Through the implementation of state-of-the-art FTTH technology, coupled with the integration of sophisticated digitization and automation procedures, we have successfully enabled our customers to enjoy uninterrupted streaming of high-definition content, including 4K and 8K videos, along with a substantial improvement in online gaming and video conferencing experiences. This strategic emphasis has notably contributed to the expansion of our FTTH subscriber base. As of March 31,

2025, our 1.06 million wireline broadband subscribers are a testament to the growing preference for wireline broadband, which facilitates not only online media consumption but also provides seamless data accessibility across multiple devices at home.

is the A significant provision of unlimited data across all our broadband service plans. This provide our customers the confident utilization data-intensive applications such as video conferencing and streaming services, eliminating concerns regarding bandwidth throttling or unforeseen supplementary charges. The average monthly data usage per FTTH customer has surpassed 357 GB, indicating robust engagement with our network, particularly in the Southern market.

With the Companys continuous efforts to enhance user experience, we have introduced, first in ONUs with in-built Wi-Fi band steering feature. With band steering enabled, devices automatically connect to the best frequency band, eliminating the need for manual selection or switching between bands, providing a consistent and seamless user experience. Its great to see a 3% rise in average monthly data usage per customer in March 2025 compared to last year. This increase not only emphasizes the consistent reliability that the customers have come to expect from us but also demonstrates their growing engagement with our digital services through our strong network.

Reflecting the Companys unwavering commitment to service serviceprovidersinthecountry, excellence, we have consistently implemented proactive network improvement strategies, which have resulted in a notably 28% reduction in network-related complaints between March 2024 and March 2025.

We firmly believe that addressing customer complaints in a timely manner is essential for safeguarding brand reputation and cultivating customer loyalty. The Company has taken a significant leap forward in delivering exceptional customer service by resolving 87% of Non Network issues within one hour.

We acknowledge that in the current competitive environment, the attainment of high Customer Satisfaction (CSAT) scores

Hathways is significant commitment to ensuring customer contentment and cultivating loyalty. Consequently, our CSAT ratings is a fundamental key performance indicator that reflects this critical facet of our business operations. We are proud to attain a 96% CSAT score towards customer experience, when dealing with support needs.

customer We are making significant interactions through the implementation of a more technology-driven interface. This evolution is strategically designed to enhance our operational simultaneously fostering continued innovation. Presented below is an outline of the principal innovation initiatives, we have undertaken this year in support of these objectives

• WhatsApp BOT for Billing Queries: AI powered Chabot integrated with WhatsApp to engage customers, provide 24/7 support on resolving billing queries, checking billing information and providing customers with a convenient and efficient way to manage their subscription renewals.

• Enhancing productivity through Automation:

Empowering internal teams with AI powered BOT for troubleshooting and registering of Customer issues. A Transformative approach to Business Operations, enabling business teams to make informed decisions based on real-time basis

• Reserve Time Slots for New Installation: We now offer a selection of available time slots, empowering customers to choose a preference that best fits and specific installation needs. This enhancement has significantly improved our efficiency, achieve a 72% same-day activation, based on customer preference. This has added one more feather to our laurel the industry,dual band and now made Hathway one of the fastest to install a new connection in the industry.

During the year under review, the Broadband business revenue stood at 602.1 crores and the subscribers stood at 1.06 Mn

(Previous Years Broadband business revenue stood at 622.7 crores and subscribers stood at 1.10 Mn).

CABLE TELEVISION BUSINESS:

HDL is a leading multi-system operator (MSO) in India, providing comprehensive CATV services.

Key Features of Hathways CATV Services:

• Product Portfolio: Offers a wide range of standard definition(SD) and high-definition (HD) cable TV services, including owned channels, with diverse channel and programming options.

• Content Diversity: Customers can access a broad selection of television content, including live broadcasts, movies, sports, and various entertainment genres.

• Vision: Hathway aims to be a single-point access provider, converging information, entertainment, and services within homes and workplaces.

• Market Presence: o Strong presence in all major metros and mini-metros, often securing a top-two market position; o Operates 7 main headends; o Network of approximately 38,000 Kms of Fiber Optic Cable; o Provides Digital Video Broadcasting over Cable

(DVBC) services to 4.9 million viewers across India (including through fellow subsidiaries & JVs); o Reaches over 700 towns and adjoining areas.

• Customer Choice: Post the New Tariff Order (NTO) implementation, customers have the freedom to select channels of their choice, supported by best-in-class technology.

Over the past year, the Indian cable television sector has undergone substantial regulatory and structural transformation, reshaping its operational and competitive landscape. Subscriber numbers continued to decline, highlighting mounting pressure on the traditional distribution ecosystem.

On the legislative front, the Ministry of Information and Broadcasting (MIB) released the draft Broadcasting Services

(Regulation) Bill, 2023 for public consultation. Concurrently, the Telecom Regulatory Authority of India (TRAI) issued recommendations on Inputs for the Formulation of the National Broadcasting Policy, signalling a move towards a more unified and forward-looking regulatory framework.

In July 2024, TRAI further notified NTO 4.0, amending Orders, Interconnect Regulations, and Quality of Service norms. resulting in While some changes intensified higher consumer costs and contributing to continued subscriber erosion, one notable positive change was the prohibition of pay channels being distributed as Free-to-Air (FTA) on DD Free Dish. This provision is expected to foster a more level playing field among distribution platforms.

These developments underscore an institutional recognition of the structural headwinds confronting the sector. Nonetheless, enduring challenges such as subscriber attrition, unsustainable economics, and regulatory disparities between traditionalanddigitalplatformsnecessitateurgent,comprehensive policy reforms. The industry remains committed to championing fair competition, safeguarding consumer interests, and ensuring the long-term viability of last-mile cable infrastructure.

Amid ongoing regulatory asymmetry, TRAI made several critical recommendations, including:

• Regulatory Framework for Ground-Based Broadcasters: Advocating for the inclusion of terrestrial technologies in content distribution;

• Upgradation of DD Free Dish to an Addressable System: Aiming to enhance service quality and curb unauthorized retransmissions;

• Framework for Free Ad-Supported Streaming Television (FAST) Services: Proposing regulatory oversight over FAST platforms currently operating without formal guidelines

To enhance the systems capabilities using the technical feasibility and to delight customers, numerous initiatives were undertaken during the year, including :

• Upgraded Network Infrastructure: Strengthened the digital head-end and distribution systems to support increased bandwidth and enhanced picture quality.

• Expanded HD Channel Portfolio: Added new high-definition channels across multiple genres to cater to evolving viewer preferences.

• Enhanced Customer Support: Improved customer service operations through faster response times, multilingual support, and 24/7 helpline access.

• Self-Care App & Portal Enhancements: Upgraded digital platforms to provide customers with greater control over their subscriptions, recharges, and channel selection.

• Deployment of On-Ground Service Teams: Rolled out dedicated regional service teams to accelerate issue resolution and ensure seamless activation of services.

Enabling QR Code on EPG based digital payments with credit going to LCOs Bank Account directly and providing instant activation.

API creation for enabling instant activation through any Tariff App used by the LCOs.

Next generation HEVC HD box and OTT hybrid box were launched during the year to give Cable Television

Customers enhanced viewing experience.

Investment in IT and other infrastructure to create a robust structure for highest quality content delivery across all areas of operation (Headend upgrades, Security

Infrastructure, LCO Portal Features).

Introduction of Trade partner Helpdesk for Local Cable

Operators to support their day-to-day function on the ground and monitor their complaints.

FINANCIALS REVIEW:

Standalone Operating Gross Revenue stood at 602.1 Crore compared to Previous year 622.7 Crore Total Comprehensive Income stands at 79.6 Crore (P.Y. 86.7 Crore).

Consolidated Gross Revenue stand at 2,039.0 Crore compared to Previous year 1,981.0 Crore and Total Comprehensive profit stand at 92.7 Crore (P.Y. 100.0 Crore).

in Crore

Standalone	FY25	FY24	Change %
Operating Revenue	602.1	622.7	-3%
Operating EBITDA	188.5	200.4	-6%
EBITDA Margin %	31%	32%	-3%
Total other comprehensive income for the Year	79.6	86.7	-8%

Rs

Consolidated	FY25	FY24	Change %
Operating Revenue	2,039.7	1,981.0	3%
Operating EBITDA	340.8	322.5	6%
EBITDA Margin %	17%	16%	3%
Total other comprehensive income for the Year	92.7	100.0	-7%

RATIO ANALYSIS:

S.No. Particulars	March 31, 2025	March 31, 2024	Variance Remarks
1 Current Ratio	3.59	3.46	4% Due to Increase in Investment
2 Debt-Equity Ratio	0.00	0.00	N.A. -
3 Debt Service Coverage Ratio	N.A.	N.A.	N.A. -
4 Inventory Turnover Ratio	N.A.	N.A.	N.A. -
5 Trade Receivables Turnover Ratio	9.40	12.16	-23% Increase due to Increase in average Trade Receivables
6 Operating Profit Margin	0.17	0.16	3% -
7 Net Profit Ratio	0.05	0.05	N.A. -
8 Return on Capital Employed	0.00	(0.01)	N.A. -
(Excluding Working Capital Financing)

The Company has 303 & 212 employees on roll in the Company & HDL respectively as at March 31, 2025.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has established adequate internal control systems commensurate with the size of the business and nature of its operations, designed to provide reasonable assurance with regard to the accuracy and completeness of the accounting records and timely preparation and provision of reliable financial statements.

The internal control framework is embedded in the business processes. Assurance on the effectiveness of internal controls is obtained through management reviews, continuous monitoring by Functional Heads as well as sample testing of the internal control systems by the independent Auditors during the course of their reviews on a quarterly basis. Entity Level Control framework is established along with process maps and key controls for all material operating processes. The Company has continued its efforts to align all its processes and controls with Industry best practices.

Audit Committee reviews the adequacy and effectiveness of Companys Internal Controls and implementation of audit recommendations on quarterly basis.

SWOT ANALYSIS:
Strengths	Challenges
Broadband:	Broadband:
First MSO to Launch GPON with assured speed of 300 Mbps and above on Wi-FI.	• Retention of Lower GB usage customers as they can manage their usage from mobility at lower price
• Highly engaged customer base with Average data consumption 340 Gb per subscriber per month AI tools exhibiting higher traction and elasticity in customer interface through increased in Chat BOT and Voice BOT interaction	• Aggresive pricing plan from competition impeding ARPU Growth
• SLA driven service for retail customers enhancing customer deiglht
Cable:	Cable:
4.9 Million digital subscribers base; Offers its cable television services across 700+ towns, operating in pan India regions	• Continuing movement of the pay TV base to OTT platforms at the upper end and free TV (at the lower end)
Enhanced system and technical capabilities based on JIO fibre backend support to meet customer expectations for best in class TV viewing experience	Revenue sharing with LCOs making it difficult to compete with DTH
	• Lower paying capacity of consumers particularly in Phase 3 and 4 markets
Encouraging LCOs to empower their customers with online renewal facility.	• Servicing hindrances in interior markets
• Provision of Mobile Apps and Portals to our customers and LCOs
• invovative GTM strategy to address evolving market needs, catering to various demographies
Opportunities	Threats
Broadband:	Broadband:
Increasing trend in demand for high speed fixed broadband	• Migration of Low end users to mobility platforms due to competitive pricing
Use cases of Online education & infotainment application will help in continuous increase in demand for fixed line broadband	• New wireless technology for providing broadband to retail customers can be a threat to fixed line broadband industry
Increase in Content through OTT platform is one of the prime drivers for online consumption.
Cable:	Cable:
• Penetration in untapped market	Free Dish offering stiff competition in Phase 3 and 4 Hindi Speaking Markets
• Rationalise ARPU through innovative DPO packs	• High end consumers / Nuclear families / Bachelors can move to TV viewing through OTT apps
Increase customer engagement through better regional content

RISKS AND CONCERNS:

Product / Technology Risk	Competition
Consequence: The traditional cable customer preferences are very slowly changing and in long term some of them may move towards getting content in a non-linear manner. Inability to meet the customers demand might lead to loss in business. Also Rapid advancements in technology leading to obsolescence of existing assets	Consequence: Broadband and Cable business verticals where Hathway is present, has low entry barriers and multiple players across geographies
	Risk Mitigation Strategy: To take early lead over competition,
Risk Mitigation Strategy: The company is well placed to serve the arising needs of the customers by offering services to existing cable customers	Hathway has offered cutting edge products & solutions at value for money pricing to enhance customers delight Hathway is well OTT & broadband poised to to grow in this new segment of the market
The shift to MPEG-4/HEVC STBs in cable and provision of providing broadband through DOCSIS 3.1 /GPON network is testament to the fact that the Company is sensitive towards the rapidly evolving technology trends
Awareness Risk
Consequence: LCOs function as primary facilitators of our business expansion. Therefore, delay in updating/on boarding them on latest initiatives undertaken by the company would negate the first mover advantage.
Risk Mitigation Strategy: The company has launched Hathway Connect portal for LCOs by imparting real-time training to help them manage their customers.