Interim report
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Deloitte Haskins & Sells Chartered Accountants 19th floor, Shapath-V S.G. Highway Ahmedabad-380 015 Gujarat , India Tel: +91 79 6682 7300 Fax: +91 79 6682 7400 INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCIAL RESULTS TO THE BOARD OF DIRECTORS OF GTPL HATHWAY LIMITED 1. We have reviewed the accompanying Statement of Standalone Unaudited Financial Results of GTPL HATHWAY LIMITED ("the Company"), for the quarter and nine months ended December 31, 2024 ("the Statement"), being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("the Listing Regulations"). 2. This Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review. 3. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity', issued by the Institute of Chartered Accountants of India (ICAI). A review of interim financial information consists of making inquiries, primarily of the Company's personnel responsible for financial and accounting matters and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing specified under section 143(10) of the Companies Act, 2013 and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. 4. Based on our review conducted as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement. Page 1 of 2
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Deloitte Haskins & Sells 5. We draw attention to Note 2 of the Statement, which describes in detail the status of the demand from DOT in connection with the l2vy of license fees aggregating to Rs. 9,754.15 Million. Basis its assessment of the recent developments and legal position on the matter as well as based on the opinion of independent legal experts, the Company is confident that it has good grounds on merit to defend itself in this matter. Accordingly, no provision has been recognized in respect of the aforesaid matter in the financial results. The contingent liability includes such demand, penalty and interest thereto for the financial year for which demands have been received by the Company. Our conclusion on the Statement is not modified in respect of this matter. Place: Ahmedabad Date: January 09, 2025 For DELOITTE HASKINS & SELLS Chartered Accountants (Firm's Registration No. 117365W) Hardik Sutaria (Partner) (Membership No. 116642) (UDIN: 25116642BM LMVD3247) Page 2 of 2
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GTPL HATHWAY LIMITED Registered Office : 202, 2nd Floor, Sahajanand Shopping Centre, Opp. Swaminarayan Temple, Shahibaug, Ahmedabad - 380 004 Tel: 91-079-25626470 CIN : L64204GJ2006PLC048908 Website: www.gtpl.net; E-mail: info@gtpl.net STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTH ENDED DECEMBER 31, 2024 Quarter Ended Nine Month Ended Particulars December 31, September 30, December 31, December 31, December 31, 2024 2024 2023 2024 2023 Unaudited Unaudited Unaudited Unaudited Unaudited 1. Income a. Revenue from Operations (Note no-7) 5,561.62 5,390.34 5,115.53 16,311.90 15,194.52 b. Other Income 89.98 61.77 101.34 224.76 261.04 Total Income 5,651.60 5,452.11 5,216.87 16,536.66 15,455.56 2. Expenses a. Purchase of Project Material 149.30 67.74 217.04 b Changes in lnvenlories of Project Material (78.90) (67.74) (146.64) c. Operating Expenses 4,116.97 3,981.55 3,642.19 11,965.71 10,870.95 d. Employee Benefits Expense 194.18 198.92 194.31 587.43 556.58 e. Finance Cost 65.56 40.61 43.90 156.13 115.49 I. Depreciation and Amortisation Expense 445.80 421.47 454.23 1,303.98 1,203.46 a. Olher Exaenses 616.26 620.87 623.14 1,918.17 1,808.39 Total Exoenses 5,509.17 5,263.42 4,957.77 16,001.82 14,554.87 3. Profit before Exceptional Items & Tax Expenses (1-2) 142.43 188.69 259.10 534.84 900.69 4. Exceptional Items (Note no-3) 5. Profit before Tax (3-41 142.43 188.69 259.10 534.84 900.69 6. Tax expense 35.80 49.02 67.83 138.31 237.79 a. Current Tax 35.61 16.63 56.90 90.85 177.67 b. Deferred Tax 0.19 32.39 10,93 47.46 60.12 7. Net Profit for the Period after Tax (5-61 106.63 139.67 191.27 396.53 662.90 8. Other Comprehensive Income/ (Loss) Items that will not be reclassified to profit or loss 0.41 1.20 1.05 1.23 3.25 Income· Tax relating to items not reclassified to profit or loss 10.10) 10.31) (0.26) (0.31) (0.82) 9. Total Other Comprehensive Income/ (Loss) (after Tax) 0.31 0.89 0.79 0.92 2.43 10. Total Comprehensive Income I (Loss) (after Tax) (7+9) 106.94 140.56 192.06 397.45 665.33 11. Paid-Up Equitv share capital (Face Value Rs.10/·) 1,124.63 1,124.63 1,124.63 1,124.63 1,124.63 12. Other Eauitv 13. Earning Per Share 0.95 1.24 1.70 3.53 5.89 Basic and Diluted (in Rs.) (Not Annualized) Refer Notes to the Standalone Unaudited Financial Results (Rs in Millions) Year Ended March 31, 2024 Audited 20,285.24 324.48 20,609.72 14,556.90 747.49 157.88 1,628.24 2,417.89 1~,508.40 1101.32 59.63 1,041.69 279.27 202.77 76.50 762.42 (1.53) 0.38 (1.15 761.27 1,124.63 7,917.32 6.78
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Notes to Standalone Unaudited Financial Results The above financial results were reviewed by the Audit Committee and subsequently approved by the Board of Directors at their meetings held on January 09, 2025. The Statutory Auditors have carried out limited review of the financial results for the quarter and nine month ended on December 31, 2024 of GTPL Hathway Limited ("the Company"). 2 The Department of Telecommunications, Ministry of Communications, Government of India ('DoT") has raised demand of Rs. 9,754.15 Millions on the Company consisting of Principal amount of Rs. 2,286.50 Millions and interest, penalty and interest on penalty (as of July 31, 2020) of Rs. 7,467.65 Millions towards license fee by including the revenue generated from its cable television business. These demands are mainly based on Hon'ble Supreme Court's Judgment in the matter of Union of India vis AUSPI & Ors. bearing C.A. Nos.6328 - 6399 on AGR dues from telecom operators ('AGR Judgmenr). Subsequently, vide order dated June 11 and June 18, 2020, the Supreme Court clarified that the AGR judgement pertaining to telecom companies could not have been basis for raising demands in the non-telecom PSUs and accordingly Do T withdrew the demands on the non-telecom PS Us. The Company, in line with the observations made by the Supreme Court has made representations to Do T against said demands, which Do T has taken on record. Also, All India Digital Cable Federation for all its member companies has filed an intervention petition in TDSAT in the matter of Asianet Satellite Communications Private Limited versus Union of India bearing TP No. 54 of 2020 challenging the demands raised on such member companies (the Company being a member too) by including its non-licensed income for computation of license fees. Further, the Ministry of Information & - Broadcasting has in February 2021 written to Do T that it grants permission to Multi System Operators ('MSOs') for cable tv operations and does not levy any license fee on the revenue, and hence the revenues earned by MSOs from cable tv business may not be clubbed with the revenue earned by them under Internet Service Provider's license. Additionally, TD SAT in February 2022 set aside the demands raised by Do T in matter relating to another ISP license holder by treating them at par with some PSUs who held similar license. The Do T has challenged the TD SAT order which is still pending. Hence, the extent and timing of outflow of funds that may be required is dependent on the outcome of litigation. With effect from 01/10/2021,definition of AGR has amended and Applicable Gross Revenue (ApGR) was introduced which was starting point for arriving AGR. ApGR specifically excludes revenue from activities under a license I permission issued by MIS. Further, by an order dated 05.10.2021, the TDSAT has stayed all demands of additional license fee. The interim order is continuing and the petition is pending before the TDSAT. Based on its assessment of the legal position as stated above and based on the opinion of independent legal experts, the Company is confident that it has good grounds on merit to defend itself. Accordingly, the Company is of the view that no provision is necessary to be made in the financial results in relation to the demands and the same has been considered as a contingent liability. 3 Exceptional items for the year ended March 31, 2024 represents provision for impairment amounting to Rs. 59.63 Millions in carrying values of investments in certain subsidiary companies. 4 During the previous quarter, the Company has acquired remaining 49% stake i.e. 72,609 equity shares of Rs. 10/- each from the existing Shareholders of GTPL Sorath Telelink Private Limited ('GTPL Sorath') for a cash consideration of Rs.0.73 Millions. Pursuant to which GTPL Sorath has become a wholly owned subsidiary of the Company. 5 During the current quarter, the Company has sold its entire 61% Equity stake i.e. 12,200 equity shares in GTPL Bansidhar Telelink Private Limited, a subsidiary of the Company, for an aggregate consideration of Rs.0.12 Millions. 6 During the current quarter, the Company has entered into a share transfer agreement to acquire balance 49% of equity stake i.e. 1,00,000 equity shares of Rs. 10/-each from the existing Shareholders of GTPL Vision Services Private Limited ('GTPL Vision") a subsidiary of the Company for a cash consideration of Rs. 1131/-per equity share aggregating of Rs. 113.10 Millions. Pursuant to which GTPL Vision will become a wholly owned subsidiary of the Company. 7 Revenue from operation includes project executed by the Company for the quarter and nine months ended December 31 , 2024 of Rs.76.10 Millions (Rs. Nil for the quarter and nine months ended December 31,2023 and year ended March 31, 2024) 8 As per Ind AS -108 - 'Operating Segment' segment information has been provided under the Notes to Consolidated Unaudited Financial Results. Place : Ahmedabad Date : January 09, 2025 ' Fo,GTPL Hathw✓ .~. nirudhsinh Jadeja Managing Director DIN: 00461390
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Deloitte Haskins & Sells Chartered Accountants 19th floor, Shapath -V S.G. Highway Ahmedabad-380 015 Gujarat, India Tel: +91 79 6682 7300 Fax: +91 79 6682 7400 INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCIAL RESULTS TO THE BOARD OF DIRECTORS OF GTPL HATHWAY LIMITED 1. We have reviewed the accompanying Statement of Consolidated Unaudited Financial Results of GTPL HATHWAY LIMITED ("the Parent") and its subsidiaries (the Parent and its subsidiaries together referred to as "the Group"), and its share of the net profit after tax and total comprehensive income of its associate and joint ventures for the quarter and nine months ended December 31, 2024 ("the Statement") being submitted by the Parent pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("the Listing Regulations"). 2. This Statement, which is the responsibility of the Parent's Management and approved by the Parent's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review. 3. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India (ICAI). A review of interim financial information consists of making inquiries, primarily of Parent's personnel responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing specified under Section 143(10) of the Companies Act, 2013 and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable. 4. The Statement includes the results of the Parent, subsidiaries, associate and joint ventures as given in the Annexure to this report. 5. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review reports of other auditors referred to in paragraph 7 below, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement. Page 1 of 5
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Deloitte Haskins & Sells 6. (a) We draw attention to Note 7 of the Statement which describes in detail the status of the demand from DOT in connection with the levy of license fees aggregating to Rs. 9,754.15 Million on the Parent. Basis its assessment of the recent developments and legal position on the matter as well as based on the opinion of independent legal experts, the Parent is confident that it has good grounds on merit to defend itself in this matter. Accordingly, no provision has been recognized in respect of the aforesaid matter in the Statement. The contingent liability includes such demand, penalty and interest thereto for the financial year for which demands have been received by the Parent. (b) We draw attention to Note 8 of the Statement which describes the status of ongoing litigation between Internet Serv ice Providers and Department of Telecommunicat ions in connection with the levy of license fee on pure internet services in case of GTPL Broadband Private Limited, a subsidiary of the Parent aggregating to Rs. 3,146.31 Million (including interest and penalty thereto for which demands have been received by the subsidiary company). Basis its assessment of legal position on the matter as well as based on the opinion of independent legal experts, the Company is confident that it has good grounds on merit to defend itself in this matter. Accordingly, the same has been considered contingent in nature and no provision has been recognised in respect of the aforesaid matter in the Statement. (C) We draw attention to Note 9 of the Statement which describes the status of ongo ing litigation with the Department of Telecommun ications for levy of license fee on pure internet services in case of GTPL KCBPL Broadband Private Limited, a step-down subsidiary of the Parent. Our conclusion on the Statement is not modified in respect of these matters. 7. We did not review the interim financial information of 44 subsidiaries included in the consolidated unaudited financial results, whose interim financial information reflect total revenues of Rs. 934.54 million and Rs. 2,681.00 million for the quarter and nine months ended December 31, 2024 respect ively, total net loss after tax of Rs. 25.91 million and Rs. 67.93 mill ion for the quarter and nine months ended December 31, 2024 respectively and total comprehensive loss of Rs. 24.75 million and Rs. 65.06 million for the quarter and nine months ended December 31, 2024 respectively, as considered in the Statement. The consolidated unaudited financial results also includes the Group's share of profit after tax of Rs. 8.95 million and Rs. 12.93 million for the quarter and nine months ended December 31, 2024 respectively and total comprehensive income of Rs. 8.95 million and Rs. 12.93 million for the quarter and nine months ended December 31, 2024, as considered in the Statement, in respect of 19 joint ventures and 1 associate, whose interim financia l information have not been reviewed by us. These interim financial information have been reviewed by other auditors whose reports have been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, joint ventures and associate, is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 3 above . Page 2 of 5
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Deloitte Haskins & Sells Our conclusion on the Statement is not modified in respect of this matter. Place: Ahmedabad Date: January 09, 2025 For DELOITTE HASKINS & SELLS Chartered Accountants (Firm's Registration No. 117365W) Hardik Sutaria (Partner) (Membership No. 116642) (UDIN :25116642BMLMVE5741) Page 3 of 5
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Deloitte Haskins & Sells Annexure to Independent Auditor's Review Report Sr. Name of Entities No. A Parent 1 GTPL Hathway Limited B Subsidiaries 1 GTPL Solanki Cable Network Private Limited 2 GTPL Zigma Vision Private Limited 3 GTPL Sk Network Private Limited 4 GTPL Broadband Private Limited 5 GTPL SMC Network Private Limited 6 GTPL Vision Services Private Limited 7 GTPL Narmada Cyberzone Private Limited 8 GTPL Link Network Private Limited 9 GTPL Vvc Network Private Limited 10 GTPL Parshwa Cable Network Private Limited 11 GTPL Insiqht Channel Network Private Limited 12 GTPL Kolkata Cable & Broadband Pariseva Limited 13 GTPL Dahod Television Network Private Limited 14 GTPL Jay Santoshima Network Private Limited 15 GTPL Sorath Telelink Private Lim ited 16 DL GTPL Cabnet Private Limited 17 GTPL V&S Cable Private Limited 18 GTPL Bansidhar Telelink Private Limited (uoto December 13, 2024) 19 GTPL DCPL Private Limited 20 GTPL Junagadh Network Private Limited 21 GTPL Kaizen Infonet Private Limited 22 GTPL Abhilash Communication Private Limited 23 GTPL Bariya Television Network (upto July 31 2024) 24 GTPL Jaydeeo Cable (upto Auqust 31 2024) 25 GTPL Maa Bhaqawat i Entertainment 26 GTPL Narmada Cable Services 27 GTPL Vrai Cable 28 GTPL World View Cable 29 GTPL World Vision 30 GTPL Leo Vision 31 GTPL Jyoti Cable 32 GTPL Khusboo Video Channel 33 GTPL Khambhat Cable Network 34 GTPL Shreenathii Communication 35 GTPL Crazy Network 36 GTPL Sai World Channel 37 GTPL Swastik Communication 38 GTPL Tridev Cable Network 39 GTPL Parth World Vision 40 GTPL Lucky Video Cable 41 GTPL Shiv Cable Network 42 GTPL SK VISION 43 GTPL Raiwadi Network Private Limited - 44 GTPL KCBPL Broadband Private Limited (Subsidiary of GTPL Kolkata Cable & ~ t-,SKIN,s'~ Broadband Pariseva Limited) o~~ 1t'"eo '\) Page 4 of 5 f?-il < / 'rf:P,l:DACC'-· ·, --
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Deloitte Haskins & Sells Sr. Name of Entities No. 45 DL GTPL Broadband Private Limited (Subsidiary of DL GTPL Cabinet Private Limited) 46 Metro Cast Network India Private Limited C Joint Ventures 1 Airlink Communication 2 GTPL Krishna Cable Network 3 GTPL Krishna Cable Service 4 GTPL Pearl Communication Network 5 GTPL Pooja Cable Services 6 GTPL Rainbow Multi Channel 7 GTPL Raj World Vision 8 GTPL Sai Cable 9 GTPL Shree Sai Cable Network 10 GTPL Yak Network (upto Auqust 31, 2024) 11 GTPL So Lucky Cable Network 12 GTPL SLC CABLE NETWORK 13 GTPL Om Sai Network LLP 14 GTPL Parshwa Shivani Vision (Joint venture of GTPL Shiv Cable Network) 15 GTPL Parshwa Shivani World Vision (Joint venture of GTPL Shiv Cable Network) 16 GTPL Parshwa Shivshakti World (Joint venture of GTPL Shiv Cable Network) 17 Array Access Digital Services Private Limited (Joint venture of Metro Cast Network India Private Limited) 18 Metrocast SSV Network Private Limited (Joint venture of Metro Cast Network India Private Limited) 19 Universal VCN Cable Network LLP (Joint venture of Metro Cast Network India Private Limited (with effect from April 01, 2024)) D Associate 1 Guiarat Television Private Limited - (:..,,._/\SKIN~ ~'\ <f<P. i· ~ i l ~AH E Ao <;J C) I:? ~/l ~~t ~~ACOJ. Page 5 of 5
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GTPL HATHWAY LIMITED Registered Office : 202, 2nd Floor, Sahajanand Shopping Centre, Opp. Swaminarayan Temple, Shahibaug, Ahmedabad - 380 004. Tel: 91-079-25626470 CIN : L64204GJ2006PLC048908 Website: www.gtpl.net; E-mail: info@gtpl.net STATEMENT OF CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2024 Quarter Ended Nine Months Ended Particulars December 31, September 30, December 31, December 31, December 31, 2024 2024 2023 2024 2023 Unaudited Unaudited Unaudited Unaudited Unaudited 1. Income a. Revenue from Operations (Refer Note 6) 8,872.70 8,555.64 8,508.75 25,862.08 24,045.12 b. Other Income 84.10 64.72 97.90 220.90 266.96 Total Income 8,956.80 8,620.36 8,606.65 26,082.98 24,312.08 2. Expenses a. Purchase of Project Material 149.30 67.74 217.04 226.86 b. Changes in Inventories of Project Malerial (78.90) (67.74) 413.84 (146.64) 186.98 c. Operating Expenses 6,403.46 6,093.07 5,546.65 18,392.69 16,124.67 d. Employee Benefits Expense 401.48 414.36 402.56 1,212.13 1,144.25 e. Finance Cost 86.53 60.28 64.81 212.91 156.03 f. Depreciation and Amortisation Expense 927.51 904.77 908.75 2,751.18 2,468.01 g. Other Expenses 943.52 974.47 938.56 2,926.81 2,715.58 Total Expenses 8,832.90 8,446.95 8,275.17 25,566.12 23,022.38 3. Profit Before Share of Profit/(Loss) of Associates and 123.90 173.41 331.48 516.86 1,289.70 Joint Ventures, Exceptional Item and Tax(1-2) 4. Exceptional Items 5. Share of Profit /(Loss) of Associates/ Joint Ventures - (after tax) 8.95 6.44 3.47 12.93 0.92 6. Profit/(Loss) before Tax (3-4+5) 132.85 179.85 334.95 529.79 1,290.62 7. Tax expense 36.54 42.45 88.25 146.17 333.22 a. Current Tax 36.08 26.07 48.96 118.61 206.86 b. Deferred Tax (0.48) 22.76 39.32 33.00 126.28 c. Previous Year Tax Adjustments 0.94 (6.38) (0.03) (5.44) 0.08 8. Net Profit/(Loss) for the period after Tax (6-7) 96.31 137.40 246.70 383.62 957.40 9. Other Comprehensive Income/ (Loss) Items that will not be reclassified to profit or loss 0.93 2.00 2.01 2.84 5.73 Income Tax relating to items not reclassified to profit or loss (0.20) (0.46) (0.28) (0.60) (1.28) 10. Total Other Comprehensive Income/ (Loss) 0.73 1.54 1.73 2.24 4.45 11. Total Comprehensive Income/ (Loss) (8+10) 97.04 138.94 248.43 385.86 961.85 12. Profit/(Loss) attributable to : -Equity Holders of the Parent 101.71 127.84 236.78 372.48 938.16 -Non Controlling Interests (5.40) 9.56 9.92 11.14 19.24 13. Other Comprehensive Income/ (Loss) attributable to: - Equity Holders of the Parent 0.53 1.33 1.19 1.62 3.57 - Non Controlling Interests 0.20 0.21 0.54 0.62 0.88 14. Total Comprehensive Income/ (Loss) attributable to: - Equity Holders of the Parent 102.24 129.17 237.97 374.10 941.73 - Non Controlling Interests (5.20) 9.77 10.46 11.76 20.12 15. Paid,Up Equity Share Capital (Face Value Rs.10/-) 1,124.63 1,124.63 1,124.63 1,124.63 1,124.63 16. Other Equity 17. Earning Per Share - Basic and Diluted (in Rs.) (Not Annualized) 0.90 1.14 2.11 3.31 8.34 Refer Notes to Consolidated Unaudited Financial Results (Rs In Million) Year Ended March 31, 2024 Audited 32,124.96 335.53 32,460.49 226.86 186.98 21,774.26 1,545.16 229.04 3,371.98 3,615.79 30,950.07 1,510.42 (2.05) 1,508.37 390.47 229.40 159.84 1.23 1,117.90 0.50 (0.25) 0.25 1,118.15 1,069.98 47.92 (0.57) 0.82 1,069.41 48.74 1,124.63 10,473.76 9.51
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Notes to Consolidated Financial Results The above financial results have been reviewed by the Audit Committee and subsequently approved by the Board of Directors at their meetings held on January 09, 2025. The Statutory Auditors have carried out limited review of the financial results for the quarter and nine months ended on December 31, 2024 of GTPL Hathway Limited ('the Parent"). 2 During the previous year, pursuant to the Share Purchase and Subscription cum Shareholders' Agreement ('Agreemenr), the Parent has acquired 50.10% in Metro Cast Network India Private Limited. 3 During the previous quarter, the Parent has acquired remaining 49% stake i.e. 72,609 equity shares of Rs. 10/-each from the existing Shareholders of GTPL Sorath Telelink Private Limited ('GTPL Sorath') for a cash consideration of Rs. 0. 73 Millions, persuant to which GTPL Sora th has become a wholly owned subsidiary of the Parent. 4 During the current quarter, the Parent has sold its entire 61% Equity stake i.e. 12,200 equity shares in GTPL Bansidhar Telelink Private Limited, a subsidiary of the Parent, for an aggregate consideration of Rs. 0.12 Millions. 5 During the current quarter, the Parent has entered into a share transfer agreement to acquire balance 49% of equity stake i.e. 1,00,000 equity shares of Rs. 10/- each from the existing Shareholders of GTPL Vision Services Private Limited ("GTPL Vision' ) a subsidiary of the Parent for a cash consideration of Rs. 1131/-per equity share aggregating of Rs. 113.10 Millions. On completion of acquisition, GTPL Vision will become a wholly owned subsidiary of the Parent. 6 Revenue from operations includes project executed by the Group for the quarter and nine months ended December 31, 2024 of Rs. 76.10 Millions. (Rs.416.40 Millions for the quarter and nine months ended December 31, 2023 and year ended March 31, 2024) 7 The Department ofTelecommunicalions, Ministry of Communications, Government of India ('DoT') has raised demand of Rs 9,754.15 Millions on the Parent consisting of Principal amount of Rs. 2,286.50 Millions and interest, penalty and interest on penalty (as of July 31, 2020) of Rs 7,467.65 Millions towards license fee by including the revenue generated from its cable television business. These demands are mainly based on Hon'ble Supreme Court's Judgment in the matter of Union of India vis AUSPI & Ors. bearing C.A. Nos.6328 - 6399 on AGR dues from telecom operators ('AGR Judgment'). Subsequently, vide order dated June 11 and June 18, 2020, the Supreme Court clarified that the AGR judgement pertaining to telecom companies could not have been basis for raising demands in the non-telecom PS Us and accordingly Do T withdrew the demands on the non-telecom PSUs. The Parent, in line with the observations made by the Supreme Court has made representations to DoT against said demands, which DoT has taken on record. Also, All India Digital Cable Federation for all its member companies has filed an intervention petition in TDSAT in the matter of Asianet Satellite Communications Private Limited versus Union of India bearing TP No. 54 of 2020 challenging the demands raised on such member companies (the Parent being a member too) by including its non-licensed income for computation of license fees. Further, the Ministry of lnfonnation & Broadcasting has in February 2021 written to DoT that it grants pennission to Mula System Operators ("MSOs") for cable tv operations and does not levy any license fee on the revenue, and hence the revenues earned by MSOs from cable tv business may not be clubbed with the revenue earned by them under Internet Service Provider's license. Additionally, TDSAT in February 2022 set aside the demands raised by DoT in matter relating to another ISP license holder by treating them at par with some PSUs who held similar license The DoT has challenged the TDSAT order which is still pending.Hence, the extent and liming of outflow of funds that may be required is dependent on the outcome of litigation. With effect from 01/10/2021,definition of AGR has amended and Applicable Gross Revenue (ApGR) was introduced which was starting point for arriving AGR. ApGR specifically excludes • revenue from activities under a license/ permission issued by MIS. Further, by an order dated 05.10.2021, the TDSAT has stayed all demands of additional license fee. The interim order is continuing and the petition is pending before the TDSAT. Based on its assessment of the legal position as stated above and based on the opinion of independent legal experts, the Parent is confident that it has good grounds on merit to defend itself. Accordingly, the Parent is of the view that no provision is necessary to be made in the financial results in relation to the demands and the same has been considered as a contingent liability. 8 GTPL Broadband Private Limited (' GBPL') has been granted Unified License from the Department ofTelecommunication ('DoT') in 2016, under which the GBPL is required to pay annual license fee at the rate of 8% of the adjusted gross revenue (' AGR").The definition of 'Gross Revenue' under the ISP license issued prior to 2013 excluded revenue from Pure Internet Services ('PIS'). However, the Unified License introduced in 2013 removed the exclusion/exemption granted to revenue from PIS without following the due process of law as required under Section 11(1) of the TRAI Act.This discrimination was challenged by Internet Service Providers Association of India ("ISPAI') before the Telecom Disputes Settlement and Appellate Tribunal ('TDSAT') in telecompetition no.169 of 2014 an!) GBPL vide another petition alleging disparity and non-level playing field among similarly placed license holders.The TDSAT passed an order dated 18.10.2019 ('ISPAI Judgement') holding the clause to be discriminatory and contrary to the concept of level playing field and also stated that decision of DoT to remove the exclusion/exemption granted to ISPs was not in conformity with the requirements of fairness and transparency inherent in Section 11(1) of the TRAI Act. Accordingly, all demands by Do T upon Unified Licensees on the basis of revenue from PIS were quashed and none of the unified license holders are required to pay license fees on PIS. The said TD SAT order has been challenged by DoT and a civil appeal is pending before Hon'ble Supreme Court. Additionally, TDSAT, following ISPAI judgement, has also allowed the petition filed by GBPL challenging inclusion of PIS for computation of AGR and set aside the letter of Do T seeking inclusion of revenue from PIS for computation of AGR. This judgement has not been challenged before the Hon'ble Supreme Court of India. • On March 31, 2021, DoT through amendment dated 31.03.2021 ('DOT Amendment') amended the definition of AGR for ISP Licenses granted under the old regime, thereby including the revenue from Pure Internet Services as part of AGR for calculating license fees payable by ISP Licenses. The said DOT Amendment has been stayed by the TDSAT in relation to cases filed by the license holders of the old regime. The extent and timings of outflow of funds that may be required is dependent on the outcome of litigation. DoT has issued demand cum show cause notice for assessment of license fees during the previous year for financial years 2021-22 and 2022-23 and during the quarter ended September 30, 2024 for financial years 2016-17 to 2020-21, demanding license fees along with interest after disallowing deduction of revenue from PIS subject lo outcome of civil appeal pending before Hon'ble Supreme Court. GBPL has submitted reply to notice for FY16-17 and FY22-23 citing reference of above-mentioned facts. During the quarter ended December 31, 2024, GBPL received similar demand-cum-show cause notice for the assessment of license fees for financial year 2023-24, for which GBPL is in the process of submitting the reply. Based on its assessment of the legal position and the status of the matters as described above and based on opinion of independent legal experts, the GBPL is confident that it has good grounds on merit to defend itself in this matter. Accordingly, no provision has been recognized in respect of the aforesaid matter in the financial results as at December 31, 2024 towards the license fees. Hence, an estimated amount of Rs. 3,146.31 millions (including interest and penalty there to for which demands have been received by the subsidiary Company) has been considered as contingent liability.
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9 The GTPL KCBPL Broadband Private Limited (' KCBPL Broadband'), has been granted Unified License from Department of Telecommunication ('Do T'), under which KCBPL Broadband is required to pay annual license fee at the rate of 8% of the adjusted gross revenue ("AGR'). The definition of "Gross Revenue· under the ISP license issued prior to 2013 excluded revenue from Pure Internet Services ('PIS' ). This discrimination was challenged by the Internet Service Providers Association of India ('ISPAI') before the Telecom Disputes Settlement and Appellate Tribunal ('TDSAT') alleging disparity and non-level playing field among similarly placed license holders. The TDSAT passed an order dated October 18, 2019 ('ISPAI judgmenr) holding the clause to be discriminatory and contrary to the concept of a level playing field. The said TDSAT order has been challenged by DoT and a civil appeal is pending before Hon'ble Supreme Court of India. Further, the department of telecommunications, through amendment vide File No. 820-01/2006-LR(VOL-II) Pt-2 dated 31.03.2021 ('DOT Amendment') amended the definition of Adjusted Gross Revenue (" AGR') for Internet Service Provider ('ISP') Licenses granted under the applicable guidelines for Unified Licenses holder, thereby including the revenue from Pure Internet Services as part of AGR for calculating licenses fee payable by ISP Licenses. The DOT Amendment has been stayed by the TDSAT in relation to cases filed by the other licenses holders. KCBPL Broadband having Unified license and duly protected by the TDSAT judgement dated October 18, 2019 and also the DOT amendment being stayed by TDSA T in cases filed by other license holders and based on the legal opinion obtained from independent legal counsel, KCBPL Broadband is confident that it has good ground on merit to defend itself in this matter. Accordingly, KCBPL Broadband is of the view that no provision is required in respect of the aforesaid matter in the financial results. Since the litigation is pending with Hon'ble Supreme Court and also with TDSAT, a liability for payment of license fee till December 31, 2024 wcrks out to Rs. 199.00 Millions (8% of Rs. 2487.51 Millions Adjusted Gross Revenue) while till March 31, 2024 wcrks out to Rs. 152.42 Millions (8% of Rs. 1905.27 Millions Adjusted Gross Revenue) has been considered to be contingent in nature. 10 Consolidated Segment Reporting:- (Rs. In Million) Quarter Ended Nine Months Ended Year Ended Segments December 31, September 30, December 31, December 31, December 31, March 31, 2024 2024 2023 2024 2023 2024 Unaudited Unaudited Unaudited Unaudited Unaudited Audited Segment Revenue Cable TV Business 7,296.17 7,072.07 6,606.04 21,311.47 19,280.65 25,912.41 Internet Service 1,391.12 1,374.49 1,352.08 4,119.68 3,962.20 5,290.59 Projects (Including O&M) 226.10 149.29 588.37 552.45 922.12 1,083.81 Less: Inter Segment Revenue (40.69) (40.21) (37.74) (121.52) (119.85) (161.85) Total Segment Revenue (Revenue from Operation) 8,872.70 8,555.64 8,508.75 25,862.08 24,045.12 32,124.96 Segment Result Cable TV Business 49.53 97.24 172.94 275.16 726.61 859.68 Internet Service 40.49 47.66 61.59 134.83 324.30 357.04 Projects (Including O&M) 42.83 34.95 100.42 119.80 239.71 291.65 Total Segment Result (PBT) 132.85 179.85 334.95 529.79 1,290.62 1,508.37 Segment Assets Cable TV Business 25,522.47 24,283.99 21,590.09 25,522.47 21,590.09 20,412.47 Internet Service 9,383.49 9,538.44 9,300.1 8 9,383.49 9,300.18 9,516.75 Projects (Including O&M) 781.29 715.87 623.74 781.29 623.74 615.55 Total Segment Assets 35,687.25 34,538.30 31,514.01 35,687.25 31,514.01 30,544.77 Segment Liabilities Cable TV Business 18,046.78 16,864.32 13,801.34 18,046.78 13,801.34 12,685.38 Internet Service 4,223.07 4,470.45 4,347.61 4,223.07 4,347.61 4,415.61 Projects (Including O&M) 594.70 464.64 748.72 594.70 748.72 577.23 Total Segment Liabilities 22,864.55 21,799.41 18,897.67 22,864.55 18,897.67 17,678.22 11 Financial results of GTPL Hathway Limited (Standalone):- Quarter Ended Nine Months Ended Year Ended Particulars December 31, September 30, December 31, December 31, December 31, March 31, 2024 2024 2023 2024 2023 2024 Unaudited Unaudited Unaudited Unaudited Unaudited Audited Revenue from Operations 5,561.62 5,390.34 5,115.53 16,311.90 15,194.52 20,285.24 ProfiU(Loss) before Tax 142.43 188.69 259.10 534.84 900.69 1,041.69 Net ProfiU(Loss) after Tax 106.63 139.67 191.27 396.53 662.90 762.42 12 Previous years/period's figures have been regrouped/rearranged wherever necessary to conform to the figures of the current period / year. Place : Ahmedabad Date : January 09, 2025 Anirudhsinh Jadeja Managing Director DIN No: 00461390