Raj Television Network Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

GLOBAL ECONOMIC OVERVIEW

The global economy in 2025 is navigating a landscape of modest growth and declining inflation amid policy uncertainties and structural challenges. Global growth is projected at 3.3% for both 2025 and 2026, below the historical average of 3.7%. Global headline inflation is expected to decline to 4.2% in 2025 and to 3.5% in 2026, with advanced economies expected to reach their inflation targets earlier than emerging markets. According to the International Monetary Fund (IMF), the outlook faces medium-term downside risks and requires careful policy management to balance inflation and growth.

The Chief Economists Outlook survey highlights a subdued global economic outlook, with 56% of chief economists expecting further weakening. The US and South Asia, particularly India, are anticipated to see robust growth, while Europe and China face weak prospects. Global inflation is easing, though services inflation remains higher than goods inflation, particularly in advanced and emerging-market economies. US policy under the new administration is expected to bring significant changes in trade, fiscal, and industrial policies, impacting the global economy in the long term. Additionally, trade-war dynamics, especially between the US and China, are expected to intensify, contributing to increasing global trade fragmentation and higher costs for consumers and businesses.

The world is now navigating the aftermath of a pivotal year of elections in 2024. In India, the worlds largest democracy, a record-breaking voter turnout has set the tone for a new government with ambitious domestic and global agendas. The newly elected European Parliament has brought fresh perspectives to address regional challenges and strengthen the EUs role in global affairs. Meanwhile, the US has seen one of its most closely contested elections in recent history, shaping a new administration with significant implications for international security and trade policies. As the global political landscape recalibrates, 2025 presents opportunities and challenges in fostering stability, cooperation, and economic growth.

The US economy remained resilient through 2024, supported by robust domestic demand driven by private consumption. However, growth is expected to slow in 2025 as the effects of trade tensions and tighter monetary conditions start to weigh on business investment and household spending. Rising tariffs on key imports are adding to price pressures, with inflation proving more persistent than anticipated, particularly in services. Although wage growth has remained strong, signs of easing in the labor market are emerging. The Federal Reserve is expected to maintain a cautious stance, with policy rates likely to hold steady through most of 2025, as they balance moderating growth against lingering inflation concerns.

The Euro area continued to face subdued growth in 2024, with Germanys weak economic performance weighing on the regions overall momentum. Heightened geopolitical uncertainty and increasing signs of trade fragmentation further constrained business confidence and export activity, particularly in key economies like Germany and France. While inflation remains elevated, it is showing signs of gradual moderation. The recovery outlook for 2025 is expected to be supported by easing inflationary pressures, cautious monetary policy adjustments, and targeted fiscal measures, though risks from external trade tensions and policy uncertainty persist.

For China, growth is projected to soften, with domestic demand and government stimulus providing support. However, persistent geo-economic risks, trade tensions, and housing market corrections continue to weigh on the outlook. High local government debt and financial sector vulnerabilities are limiting policy headroom, posing challenges to sustaining the momentum.

OUTLOOK

Global economic growth is expected to moderate amid rising geopolitical tensions and trade disruptions. Strategic policy coordination will be essential to balance inflation control with support for investment and consumption. Sustained growth will depend on reinforcing supply chain resilience, advancing structural reforms, and promoting technological innovation. Fiscal discipline, alongside targeted public spending in defense, climate action, and infrastructure, will help economies navigate near-term challenges. Strengthening labor markets, fostering skill development, and encouraging international cooperation to reduce trade barriers will be key to fostering inclusive and stable global progress in the years ahead.

INDIAN ECONOMIC OVERVIEW

Indias economy continues to demonstrate strong momentum and is projected to remain one of the fastest-growing major economies in 2025 and 2026. Despite global economic headwinds, Indias growth trajectory remains robust, driven by strong domestic demand, sustained public infrastructure investment, and a resilient services sector. However, external risks persist due to weaker global trade, tighter financial conditions, and geopolitical uncertainties. On the domestic front, food inflation remains a concern, particularly due to weather-related risks impacting agriculture. Fiscal policy remains disciplined, with continued investment in infrastructure, digital innovation, and employment generation. The manufacturing sector is expected to benefit from policy incentives and global supply chain shifts, while the services industry, particularly IT and financial services, continues to expand at a healthy pace. Consumer sentiment remains stable, aided by rising urban wages, expanding financial inclusion, and robust digital transformation.

INDIAN GROWTH PROJECTIONS

FY	GDP Growth rate (%)
FY 2022-23	7.0
FY 2023-24	7.6
FY 2024-25 (Estimated)	6.6

The manufacturing sector recorded moderate growth of 4.7%, impacted by weak external demand and geopolitical tensions. However, favourable policies such as the Production Linked Incentive (PLI) scheme, which spurred investments in critical industries like electronics and automobiles. Meanwhile, the services sector emerged as a vital contributor to economic activity, with 7.7% growth, driven by IT, professional services, and robust consumer demand. Exports of services rose by 30%, highlighting Indias position as a global outsourcing hub.

Agriculture maintained a steady growth rate of 3.5%, supported by enhanced MSPs and record food grain production. This stability played a critical role in upholding rural consumption and contributing to overall economic resilience.

Infrastructure development continued to be a key focus, with government capital expenditure reaching a record Rs. 11.1 trillion, enabling substantial growth in transportation, energy, and urban development projects. Additionally, GST collections reached record highs, consistently exceeding Rs. 1.5 trillion monthly, reflecting robust domestic consumption and improved tax compliance. On the trade front, Indias merchandise exports demonstrated resilience, particularly in electronics and engineering goods, which together constituted 31% of total exports. However, muted global demand and geopolitical uncertainties affected overall trade momentum. Foreign Direct Investment (FDI) inflows Corporate Overview remained strong at USD 84.8 billion, underscoring Indias appeal as a destination for global investors.

OUTLOOK

Looking ahead, the Indian economy is expected to grow between 6.5% and 6.6% in FY 2025-26, according to forecasts by the IMF and RBI. Investments in green energy, digital transformation, and infrastructure are anticipated to play a crucial role in sustaining this momentum. The governments focus on reducing import dependency, particularly in electronics manufacturing, through continued support under the PLI scheme, is expected to boost domestic production and export capabilities.

However, challenges remain on the horizon. Global trade dynamics, fuelled by geopolitical tensions and a potential slowdown in advanced economies, could pose risks to Indias export growth. Inflationary pressures, while moderating, may still require cautious monetary management to support domestic demand without overheating the economy.

Despite these risks, Indias demographic advantage and its emphasis on self-reliance through initiatives like Atmanirbhar Bharat offer a strong foundation for growth. Continued investments in infrastructure and digital public services under the Digital India programme will likely enhance connectivity, create employment opportunities, and drive innovation. These efforts position India to remain a key player in the global economic landscape, with the potential to navigate uncertainties and capitalise on emerging opportunities.

UNION BUDGET FY 2025-26

The Union Budget 2025 outlines a strategic roadmap for economic growth, emphasising digital transformation, consumption-driven expansion, and job creation. With a proposed The Union Budget 2025 outlines a strategic roadmap for economic growth, emphasising digital transformation, consumption-driven expansion, and job creation. With a proposed Rs. 500 crore allocation for new Centres of Excellence (CoEs) in AI and digital education, the Government is fostering innovation that will directly impact media, broadcasting and digital content sectors. Additionally, the Bharat Bhasha Pustak Scheme, aimed at promoting Indian-language digital books, is expected to accelerate vernacular content consumption, an area witnessing rapid growth in the media industry. 500 crore allocation for new Centres of Excellence (CoEs) in AI and digital education, the Government is fostering innovation that will directly impact media, broadcasting and digital content sectors. Additionally, the Bharat Bhasha Pustak Scheme, aimed at promoting Indian-language digital books, is expected to accelerate vernacular content consumption, an area witnessing rapid growth in the media industry.

The budgets tax relief measures, including increased exemptions and rebates, are anticipated to boost disposable income, thereby driving higher media consumption. With the M&E industry poised for an 8.3% CAGR, this stimulus will enhance advertising and subscription revenues. Further, the Rs. 1 lakh crore corpus for technology led investments aligns with the digital aspirations of media houses, including Raj Television Network Limited, enabling deeper integration of AI, analytics, and content personalisation.

The Governments commitment to developing 50 key tourist destinations and streamlining e-visa processes is also expected to benefit travel-related content, advertising, and sponsorship revenues. With no additional tax burdens and a focus on simplification, the budget presents a stable and growth-oriented environment for Raj Television Network Limited to expand its digital-first approach and maintain its leadership in the evolving media landscape.

COMPANY OVERVIEW

Raj Television Network Limited (Raj TV) is one of Indias largest entertainment content companies. Starting with the launch of Indias Second Tamil satellite channel, RAJTV, in 1994, RAJTV has evolved into an integrated entertainment content company over the last three decades.

The Company incorporated in 1994, broadcasts thirteen channels presently in various southern languages. Raj TV, its flagship television channel launched in 1994 was the first general entertainment channel of the Company. The Company caters to the entire spectrum of customers entertainment needs with production of content across different formats and platforms, such as fiction and reality shows for television, movies, music, digital, plays and live events. Over the years, the Company has built strong a content library of 100,000+ hours reaching over a billion viewers globally.

The Company has built a strong content creation capability, over the last three decades and built strong in-house content creation expertise and developed an eco-system that seamlessly delivers engaging content at a competitive cost. We have long-standing partnership with the artist fraternity and our leadership position makes us their preferred partner. While we work with multiple creative partners, with an in-house TV studio, movie production and Distribution Company and a music label, we are uniquely positioned to offer a range of content for diverse audience. Raj TV currently operates 14 television channels in five languages including Tamil, Telugu, Kannada, Malayalam and Hindi. The company earns its revenue from following main segments:

A. Advertisement

B. Air Time Charges

C. Pay Channel Distribution Revenue

D. Subscription Revenue,

E. Sale of Rights

F. Sales export Revenue

Raj TV content offerings span across the globe. Today, we have a footprint across more than 172 countries with a portfolio of channels catering to the Indian and south Asian Diaspora as well as local audiences of the 14 channels in the international markets, 1 Channel is dedicated to non- Indian audience, offering them entertainment content in their native languages.

Our network covers USA, EUROPE, MENAP, AFRICA and APAC regions.

The company undertakes several production projects with the right mix of self-produced and outsourced productions, to mitigate financial risk and obtain large revenues. With self-produced content, the company gets complete right over the content, and can build its own intellectual property base. Raj TV has an advantage of being a mass channel with its extensive line up of attractive programming to cater the entire family. The channels of the network reach a wide variety of audiences as it satisfies people of all ages, The Channel offers a right mix of movies, serials, debates, cultural, educational, cookery, handicrafts and religious programmes satisfying the needs of the entire community ranging from Urban to the rural audience.

REGIONAL ENTERTAINMENT CHANNELS

RAJTV is one of the largest providers of regional entertainment in India, with a bouquet of 14 channels of 3 GECs (Tamil, Telugu & Hindi), 4 News channels (Tamil, Telugu, Kannada & Malayalam) 1 movie channel (Tamil) and 4 music Channels (Tamil, Telugu, Malayalam & Kannada) channels, Raj Kids in pipeline. The regional portfolio is spread across 5 languages Tamil, Telugu, Malayalam; Kannada & Hindi are leaders in their segments. RAJ TVs regional channels uniquely position it as a pan - India provider of high-quality entertainment content, appealing to a wide variety of audiences.

TAMIL MOVIE CLUSTER

RAJTV has a portfolio of 1 SD channel (Raj digital plus) catering to different segments of audiences and genres. The flagship channel, Raj Digital Plus, is a family entertainer, with movies that appeal to all age-groups & pictures caters.

INDUSTRY STRUCTURE AND DEVELOPMENTS

As per the FICCI EY Media & Entertainment Report (‘Report^, the Indian M&E sector grew by a modest 3.3% YoY in CY 2024 to reach Rs. 2.5 trillion. While growth momentum in the digital segment continued, none of the other major segments grew. Television declined for the second consecutive year and as a result Digital segment surpassed it, becoming the largest segment, contributing 32% to the M&E sector revenues. Both TV and Print segments remained lower than the pre-pandemic levels. 8% growth in advertising was driven by 17% growth in Digital segment whereas other segments remained either flattish or declined marginally. Softness in advertising continued as consumer demand remained subdued during the year and start-ups and new- age brands continued to focus on profitability, reducing spends on growth marketing. Video viewership, however, witnessed growth on both TV and Digital as consumers continued to seek out content, further helped by the increased penetration of internet and connected devices.

Having surpassed television as the biggest media segment in India, Digital is expected to grow at a CAGR of 11.2% over 2024-2027 to Rs. 1.1 trillion, representing more than 50% of ‘big media (TV, Digital, Print). While the growth rate is expected to be lower than the rate at which the Digital segment has grown over the last 10 years, it is primarily attributable to the scale that the segment has now reached.

India is one of the biggest digital consumer markets with nearly 950 million broadband subscribers, driven by penetration of mobile internet. With a higher proportion of time spent on small screens dedicated to video content consumption, online video is expected to drive the long-term growth of the media segment. On an average, Indians spend around 5 hours a day on their phones, of which nearly 70% goes towards media and entertainment consumption. Video forms a significant part of this time spent, growing 18% last year. Online video viewers in the country are expected to grow to 625 million by 2027, from the current base of 550 million, further driving digital video penetration amongst the masses.

Advertising continues to be the mainstay of digital monetization, capturing around 90% of revenue share. It is expected that digital monetization will continue to be skewed in favor of advertising in the medium term, highlighted by the fact that SMEs already spend more than Rs. 250 billion annually on digital advertising today and are expected to further increase it to Rs. 370 billion by 2027, as per the Report.

Connected TV ownership in India crossed 50 million by the end of 2024 and with 46 million wired broadband homes, it makes the penetration of internet-connected TV screens almost on par with DTH, Cable and Free TV. With most of the new TV sets being sold in the country designed to connect to the internet and wired broadband adoption spreading to smaller cities, CTV is expected to become the largest medium over the next few years.

CTV monetization gained critical mass during the year, reaching Rs. 29 billion, contributing to more than 10% of TV advertising revenues. Combining the best features of the traditional and digital ecosystem, CTVs enable brands to reach audiences at scale in an intelligent fashion. Big screens also offer better attention spans, leading to higher engagement and stickiness, making it a must-have platform in the marketing mix for most brands.

OPPORTUNITIES AND THREATS

AIS INCREASING IMPACT ON MEDIA INDUSTRY

Accelerated development in the field of Artificial Intelligence (AI) is impacting nearly every sector, including the media industry. While it is still too early to predict how it will transform the sector over the long-term, media organizations are increasingly incorporating AI in their workflows for content creation, curation, content distribution and driving consumption. Content creation is one of the most rapidly expanding applications of AI. This increased usage presents both opportunities and challenges. AI is already being used for generating articles, summaries, reports, and videos at an unprecedented speed, it is also posing new challenges around accuracy, copyrights and sensitivity.

Furthermore, AI is adding a new layer to data analytics, providing valuable insights into audience behavior and enabling companies to deliver personalization to their consumers. From identifying trending topics and optimizing headlines to predicting stories that resonate with readers, it allows news organizations to be more responsive to audiences interests and needs. It is also helping in automation of repetitive and low-involvement tasks, enabling organizations to focus more on actions that add tangible value to its audience. With continued developments in the technology combined with right human interventions, AI is likely to become even more integrated into the newsroom.

Media and Entertainment sector has a very good opportunity to grow with the rapid growth in the urbanisation and digitalisation globally. Some key factors which shall boost the growth opportunities are:

Indias urban population is expected to reach 675 million by 2035, driving the demand for a larger consumer base for the advertising industry of India. Indias e-commerce market is expected to reach USD 74.8 billion and USD 350 billion by 2030. Advertisers can leverage various digital channels such as social media, search engines and mobile apps to reach urban consumers, who are increasingly active online.

Indias population stood at 1.4 billion in 2022 which led to an emergence of new markets and segments, providing opportunities for advertisers to tap into untapped consumer segments and expand their customer base.Government policies can encourage advertising agencies and companies to invest in India and drive industry growth.

More than 50% of Indias current population is below the age of 25 and over 65% below the age of 35. The median age of the country is 28.4 years, an economically productive age compared to the global average of 30 years.

The government strengthened electricity connectivity across all the cities and villages of India, which in turn boosted the advertisement market. Precisely it can be concluded that the Company a part of the Media and Telecommunication industry has a bright future citing the following opportunities:

OPPORTUNITIES

In the long run, growth in the M&E industry is expected in retail advertisement on the back of several players entering the food and beverages segment, E-commerce gaining more popularity in the country, and domestic companies testing out the waters. Indias rural regions are expected to be the next regions for growth. India has also gotten on board with 5G and is already planning for 6G well ahead of the future. This push towards digital adoption especially in the rural regions will provide advertisers and publishers with an immense opportunity to capture untapped markets and help grow Indias media and entertainment industry forward.

• Increasing interest of global investors in the sector.

• Nascent stage of the new distribution channels offers an opportunity for development.

• Rapid de-regulation in the industry.

• Rise in viewership and the advertising expenditure.

THREATS

It is difficult to predict our revenues and expenses as they fluctuate significantly given the nature of the markets in which we operate. This increases the likelihood that our results could fall below the expectation of market analysts. Certain threats are summarized below:

• The commercial success of Raj Television Network Limited Channels (RAJTV) depends on our ability to cater to viewer preference and maintain high audience shares which could be affected.

• Subscription and Advertising income continue to be the major source of RAJTVS revenues, which could decline due to a variety of factors.

• Technological failures could adversely affect our business.

• Our inability to effectively deploy and manage funds could affect our profitability.

• The competition and increasing prices may adversely affect our ability to acquire desired programming and artistic talent.

• RAJTV operates in an intensely competitive industry.

• RAJTV is a regional broadcaster, who may limit our opportunities for growth as well as our attractiveness to advertising customers and others.

• Piracy, violation of intellectual property rights poses a major threat to the industry.

• Lack of quality content.

• Uncertainty about success in the marketplace.

SEGMENT

Raj Television Network Limiteds operations predominantly relate to a single segment "Media and Entertainment".

OUTLOOK

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 is 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. Overall, while the coming times would provide many growth opportunities, the segment would also face competition from other avenues, such as social media, gaming and short videos.

M&E sector is at an important point in its growth journey, with Digital taking over television as the largest medium in terms of revenue. This transition is driven by the unleashing of smartphone and internet revolution, which has equipped consumers around the world to have seamless and round the clock access to content on their screens. Coupled with the inherent need for consumers to stay informed and be entertained, the M&E sector is poised for long-term growth. Additionally, the sector is also expected to benefit from Indias projected economic growth and rising disposable incomes over the medium to long term.

As ever, quality content remains at the center of this industry, with wide availability and seamless viewing experience serving as two critical factors for attracting and retaining consumers. With democratization of content creation, the sheer volume of content being created is reaching a new high every day. While this brings opportunities, it also presents various challenges. The issue of content discovery, factual accuracy and a safe environment for brands to advertise in are some of the challenges that are becoming critical. Raj Television Network Limited views these challenges as avenues for enhancing its credibility and accelerating growth. Leveraging its robust infrastructure for news gathering and efficient systems that ensure accuracy, the Company provides trustworthy, high- quality content that resonates with the audiences, fortifying its market position and fostering consumer trust. Our goal is to consistently engage with our audience through content that resonates with them. While digital will drive future growth for the Company, we are seeing improvement in viewership across several regional television markets, highlighting their potential as drivers of growth.

Aligned with our strategy for long-term growth, we are making sustained investments to fortify our current position while continuously building capabilities for the future.

Raj Television Network Limited delivers a steady flow of highly popular programs and a dominant share of audience viewership which has given the network tremendous pricing power vis-a-vis competitors. The presence of Raj Television Network Limited across genres and with a dominant market share in the five southern states of India (Tamil Nadu, Kerala, Karnataka, Andhra Pradesh and Telangana) ensures continued and sustained viewership and prominent role in the Media and Entertainment Industry.

RISKS AND CONCERNS

The Board of Directors gives due care and diligently employs risk mitigating ideas reinforced by internal controls, to ensure that the Company achieves its strategic objectives and remains safeguarded against unforeseen circumstances. The Company focuses on becoming a sustainable business entity by acknowledging potential risks and establishing robust risk management policies. The effectiveness of our strategy directly correlates with the Companys ability to withstand unforeseen incidents. Consistency is a key aspect of our risk management approach, prioritizing long term business sustainability over short-term profitability in our corporate strategy. This ensures a clear understanding of feasible and non-feasible actions within our operational framework, involving all shareholders. The Company confirms that there is an extensive risk mitigation framework to help the Company review organizational risks. The thoroughness of the process has improved corporate sustainability. Hence, risk mitigation framework plays an important part of our corporate management The Risk factors of the Company are discussed below:

		The Peoples Channel
CONTENT AND BRAND RISK	Success in the media business, both news and entertainment, is primarily dependent upon the choice of subject matter and its treatment. Consumer preferences keep evolving continually, with changes clearly visible only over a long term, making it difficult to accurately predict the probability of future success. Revenues from any content are directly linked to viewership and audience interest and hence, there is a risk of revenue loss in case the majority of viewers in the target group do not sample the content or reject the content. Also, consumers associate the different channels of Raj Television Network Limited, with certain types of content and if an event harms any brand of Raj TV, it can lead to an undesirable impact on its business.	To mitigate these risks, the group actively tracks the salience of its content through onground studies, analysis of viewership and online traffic data, feedback on socia media platforms and gathering feedback on brand perception. The Company has a diversified presence in multiple languages and genres, making the probability of simultaneous failure across all markets a low probability event. The strength of Ra_ TVs Channels is one of its biggest assets and the Companys success depends upon the popularity, recognition, and salience o: its brands.
TECHNOLOGY RISK	The pace of technological development has accelerated over the past few years across all businesses, especially in the media sector, as new business models have evolved, changing the shape and form of viewing habits. The entire content value chain - content gathering solutions, production techniques, and distribution platforms, are being increasingly driven or heavily influenced by technology, thereby creating a direct impact on content presentation, working efficiencies and operational costs. The pace of change of technology creates a challenge for the business to remain abreast with the latest advancements and identify the most suitable technical solutions for the business.	The Company has been continually investing in upgrading its systems, both consumer interface as well as internal portals, in line with the latest developments. It is also recruiting technically proficient personnel, engaging leading technology vendors, and continually training its workforce to keep up with the changes.
FINANCING RISKS	Most of the Companys debt is in the form of short-term debt from capital markets. This exposes the Company to the risk of non-availability of external capital due to macro factors such as liquidity, volatility in interest rates, and general economic environment.	The Company continually monitors funding requirements, evaluates market conditions and engages with multiple financia institutions to mitigate the risk of capita inadequacy.
COMPETITION RISK	The Company operates in a highly competitive environment and faces competition from both domestic as well as international players in all its businesses. While the competitive intensity in the broadcasting space is largely stable with no new major entrants, most of the markets have multiple players competing for a higher share of the viewership pie. In the digital space, there are over two dozen players vying for consumers time. Similarly, in the other business also the Company competes with established and new players. Any new competition in the space can have an impact on the Companys revenues.	The Company has taking continuos efforts to stand in this strong competative enviornment and also launched two new channels with a view aligned with the companys strategic objectives to expand its market footprint.
CYBERSECURITY RISK	The pace of growth of the digital economy in the current decade has enabled cyber criminals across the globe to hack into sensitive IT infrastructure through phishing and other malpractices. Geopolitical conflicts have escalated cyber threats, positioning cyberspace as a critical battleground for disrupting businesses.	The Company regularly undertakes improvement programs to ensure thai digital transformation incorporates next- generation cyber security architecture with prevention, detection, and correction capabilities to protect against invasive threats and best practices to remain safe competitive, efficient, and responsive Additionally, with the increasing integration of AI, safeguarding data integrity and privacy remains a top priority to mitigate emerging threats. Periodic audits and assessments by both internal and externa teams help to plug any gaps.
REGULATORY AND COMPLIANCE RISK	The Indian regulatory landscape for the media industry is constantly evolving across various areas, including distribution, taxation, and content censorship. Further, reporting requirements under SEBI, MCA and Taxation laws have increased manifold over the past few years. Any change in regulation by the industry regulator, Telecom Regulatory Authority of India (TRAI) or the Ministry of Information and Broadcasting (MIB) requires a proactive alignment of corporate performance objectives while ensuring compliance with new requirements.	The Company has a well-qualified and experienced team of professionals across the compliance landscape who have helped the Company successfully navigate the challenges presented by regulatory changes.

INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY

Companys internal control systems are commensurate with the nature of its business and the size and complexity of its operations. These are routinely tested by Statutory as well as Internal Auditors and cover key business areas. Significant audit observations and follow up actions thereon are reported to the Audit Committee. The Audit Committee reviews adequacy and effectiveness of the Companys internal control processes and monitors the implementation of audit recommendations, including those relating to strengthening of the Companys risk management policies and systems.

Further the Audit Committee has directed stringent controls for mitigating any potential risk implications while issuing letter of comfort by the Company or its subsidiary in the course of the business. Our internal control systems consist of the following main elements:

• Delegation of authority

• Standard Operating Procedures & Policies

• Effective IT systems aligned with business needs

• An internal audit framework

• An ethics framework

• Adequate segregation of duties

Our robust internal control systems have demonstrated efficacy and have not undergone significant changes during the year.

FINANCIAL AND OPERATIONAL PERFORMANCE OVERVIEW

SHARE CAPITAL

The Company has an authorized capital of Rs. 30 Crores divided into 6 crores Equity shares of Rs. 5/- each. The Company has only one class of issued share capital i.e., Equity Share Capital of Rs. 25.96 Crores divided into 5,19,13,344 Equity Shares of Rs. 5/- each. There has been no change in the share capital of the Company during the Financial Year under review.

REVENUE

During the Financial Year under review, the Company achieved a total revenue of Rs. 12,58,205.62 (in ‘000s) as compared to Rs.10,64,597.47 (in ‘000s) during the previous Financial Year 2023-24. Other income was Rs. 2430.52 (in ‘000s) as compared to Rs. 3,751.67 (in ‘000s) during the Financial Year ended March 31, 2024.

EBIDTA MARGIN

The Earnings before Interest, Tax, Depreciation and Amortisation (EBIDTA) during the Financial Year ended March 31, 2024 was Rs. 48,444.55 (in ‘000s), representing 4.55% of revenues, as compared to Rs. 57,041.53 (in ‘000s) representing 6.73% of revenues in the previous Financial Year. Such a decrease in the EBIDTA margin is due to an increase in production cost, employees expenses and other expenses partially set off against an increase in revenue. EBIDTA as mentioned above doesnt include other income.

The Company has occurred a loss of Rs. 2,10,128.65 (in ‘000s) during the Financial Year 2024-25 as compared profit of Rs. 8,057.54 (in ‘000s) for the previous Financial Year 2023- 24.

DEPRECIATION

During the Financial Year 2024-25 the depreciation and amortization amounted to Rs. 15,039.29 (in ‘000s) as compared to Rs. 15,052.76 (in ‘000s) incurred during the Financial Year ended March 31, 2025.

HUMAN RESOURCES

The Company emphasises creating an inclusive work environment for its sustainable growth and success. Its workforce management strategy is built on regular employee engagement, effective dispute resolution mechanisms, and initiatives that encourage employee participation. By equipping employees with relevant skills and a progressive mindset, the Company ensures its workforce is prepared to meet future challenges.The Company is also focussed on advancing womens leadership, inclusive employment practices, and policies that promote non-discrimination and equality. The Companys policies and practices shape a fair, inclusive and empowering environment. By integrating human rights principles into our operations, we create a responsible and supportive ecosystem for all. A continuous review of the monitoring process is underway and procedures and systems are being institutionalized across the organization.

MOVEMENT IN THE KEY FINANCIAL RATIOS

Particulars	FY ended March 31, 2025	FY ended March 31, 2024	Changes between Current FY & Previous FY (%)	Explanation
Debtors Turnover	2.75	4.16	(33.89%)	Decline due to slower collections and higher receivables.
Inventory Turnover	NA	NA	-	Not applicable to broadcasting operations.
Interest Coverage Ratio	(5.54)	1.48	(474.32%)	Negative impact from lower profits and higher finance costs.
Current Ratio	1.12	1.68	(33.33%)	Increase in current liabilities versus liquid assets.
Debt Equity Ratio	0.53	0.27	96.30%	Higher borrowings during the year.
Operating Profit Margin (%)	8.51	26.81	(68.29%)	Margin contraction due to higher costs and lower revenues.
Net Profit Margin (%)	(16.70)	0.76	(2297.37%)	Loss incurred due to finance cost and provisions.
Return on Net Worth (%)	(26.49)	0.80	(3411.25%)	Negative return on account of net loss.
Basic EPS (Rs.)	(4.?5)	0.16	(2631.25%)	Loss translated into negative EPS.

FORWARD-LOOKING STATEMENTS

Certain statements in this annual report concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. We have tried wherever possible to identify such statements by using words such as ‘anticipate, ‘estimate, ‘expect, ‘project, ‘intend, ‘plan, ‘believe and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward-looking statements will be realized, although we believe we have been prudent in our assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialise or should underlying assumptions prove inaccurate, our actual results could vary materially from those anticipated, estimated or projected. Readers should bear this in mind.

We undertake no obligation to publicly update any forwardlooking statements, whether as a result of new information, future events or otherwise.

SAFE HARBOR

Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause our actual results to differ materially from those in such forward-looking statements. 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.