MIRA INFORM REPORT

Business information report

1. Summary Information

		Country	India
Company Name	HATHWAY CABLE AND DATACOM LIMITED	Principal Name 1	Mr. Bharat Shah
Status	Moderate	Principal Name 2	Mr. Rajan Raheja
		Registration #	11-011421
Street Address	Rahejas, 4^th Floor, Corner of Main Avenue, V.P. Road, Santacruz (West), Mumbai – 400 054, Maharashtra
Established Date	07.08.1959	SIC Code	--
Telephone#	91-22-26001306	Business Style 1	Service Provider
Fax #	91-22-26001307	Business Style 2	---
Homepage	http://www.hathway.com	Product Name 1	Cable Transmission
# of employees	1000 (Approximately)	Product Name 2	Internet Service Provider
Paid up capital	Rs. 1429,051,000/-	Product Name 3	--
Shareholders	Promoter and Promoter Group – 49.57% Public Shareholding – 50.43%	Banking	Axis Bank Limited
Public Limited Corp.	Yes	Business Period	53 Years
IPO	Yes	International Ins.	-
Public Enterprise	Yes	Rating	B (32)
Related Company
Relation	Country	Company Name	CEO
Subsidiaries	India	Gujarat Telelink Private Limited	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2011		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	3,138,380,000	Current Liabilities	2,104,562,000
Inventories	18,802,000	Long-term Liabilities	2,758,698,000
Fixed Assets	5,384,946,000	Other Liabilities	46,432,000
Deferred Assets	0,000	Total Liabilities	4,909,692,000
Invest& other Assets	4,825,940,000	Retained Earnings	11,999,524,000
		Net Worth	8,458,376,000
Total Assets	13,368,068,000	Total Liab. & Equity	13,368,068,000
Total Assets (Previous Year)	15,201,744,000
P/L Statement as of	31.03.2011		(Unit: Indian Rs.)
Sales	4,738,667,000	Net Profit / (Loss)	(381,642,000)
Sales(Previous yr)	4,020,243,000	Net Profit / (Loss) (Prev.yr)	(828,839,000)

MIRA INFORM REPORT

Report Date :

29.08.2012

IDENTIFICATION DETAILS

Name :	HATHWAY CABLE AND DATACOM LIMITED (w.e.f. 07.09.2009)

Formerly Known As :	CHICS DISPLAY SERVICES PRIVATE LIMITED HATHWAY CABLE AND DATACOM PRIVATE LIMITED (w.e.f. 16.02.1999)

Registered Office :	Rahejas, 4^th Floor, Corner of Main Avenue, V.P. Road, Santacruz (West), Mumbai – 400 054, Maharashtra

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	07.08.1959

Com. Reg. No.:	11-011421

Capital Investment / Paid-up Capital :	Rs. 1429.051 Millions

CIN No.: [Company Identification No.]	L64204MH1959PLC011421

TAN No.: [Tax Deduction & Collection Account No.]	MUMH07346D

PAN No.: [Permanent Account No.]	AAACC6814B

Legal Form :	A Public Limited Liability Company. The company's shares are listed on the Stock Exchanges

Line of Business :	Providing of Cable Transmission and Internet Services.

No. of Employees :	1000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (32)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 33000000

Status :	Moderate

Payment Behaviour :	Slow But Correct

Litigation :	Clear

Comments :	Subject is one of the largest MSO and cable broadband service providers in India. It is promoted by the Raheja Group. It is an old and well established, reputed company having moderate track records. It had incurred heavy loss during 2011. Accumulated losses appears to increasing over year. However, trade relations are reported as decent. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	Rahejas, 4^th Floor, Corner of Main Avenue, V. P. Road, Santacruz (West), Mumbai – 400 054, Maharashtra, India
Tel. No.:	91-22-26001306 / 26055041 / 67627000
Fax No.:	91-22-26001307
E-Mail :	feedback@hathway.com milind@hathway.net
Website :	http://www.hathway.com
Area :	4000 sq ft
Location :	Rented

Corporate Office :	Located at: Mumbai Delhi Bangalore Chennai Hyderabad Pune Nasik Vijayawada Aurangabad Ludhiana Jalandhar Mysore Chandigarh Indore Bhopal Jaipur

DIRECTORS

AS ON 31.03.2011

Name :	Mr. Bharat Shah
Designation :	Chairman

Name :	Mr. Rajan Raheja
Designation :	Director
Address :	Rahejas, 87/1, G. B. Marg, Juhu, Mumbai-400049, Maharashtra, India
Date of Birth/Age :	17.06.1954
Date of Appointment :	07.09.2000

Name :	Mr. Akshay Raheja
Designation :	Director

Name :	Mr. Viren Raheja
Designation :	Director

Name :	Mr. K. Jayaraman
Designation :	Managing Director and Chief Executive Officer
Address :	909, Brindaban, II-B, Poonam Nagar, Andheri (East), Mumbai-400093, Maharashtra, India
Date of Birth/Age :	16.05.1961
Date of Appointment :	08.02.2004

Name :	Mr. Vinayak Aggarwal
Designation :	Director
Address :	502, Gladioli, Off Yari Road, Versova, Andheri (West), Mumbai-400061, Maharashtra, India
Date of Birth/Age :	12.04.1969
Date of Appointment :	04.06.1996

Name :	Mr. Jagdishkumar G.
Designation :	Director

Name :	Mr. Uday Shankar
Designation :	Director
Address :	301/ 302, Vastu CHS Limited, De. L.D. Thadani Marg, Worli Seaface, Mumbai – 400 030, Maharashtra, India
Date of Birth/Age :	16.09.1961
Date of Appointment :	24.10.2007

Name :	Mr. Brahmal Vasudevan
Designation :	Director

Name :	Mr. Sasha Mirchandani
Designation :	Director

Name :	Mr. Sridhar Gorthi
Designation :	Director

Name :	Mr. Devendra Shrotri
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Milind Karnik
Designation :	President - Finance and Company Secretary
Address :	E/30, Sai Krupa, Ram Mandir Road, Babhai, Borivali (West), Mumbai-400092, Maharashtra, India
Date of Birth/Age :	02.12.1960
Date of Appointment :	01.01.1999

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.06.2012

Category of Shareholder

No. of Shares held in Dematerialized Form

% of No. of Shares

(A) Shareholding of Promoter and Promoter Group

(1) Indian

Individuals / Hindu Undivided Family

48,193,200

33.74

Bodies Corporate

22,614,003

15.83

Sub Total

70,807,203

49.57

(2) Foreign

Total shareholding of Promoter and Promoter Group (A)

70,807,203

49.57

(B) Public Shareholding

(1) Institutions

Mutual Funds / UTI

19,891,481

13.92

Financial Institutions / Banks

1,004,710

0.7

Foreign Institutional Investors

34,757,777

24.33

Any Others (Specify)

5,568,609

4.8

Foreign Companies

5,568,609

4.8

Sub Total

61,222,577

43.76

(2) Non-Institutions

Bodies Corporate

3,959,360

2.77

Individuals

Individual shareholders holding nominal share capital up to Rs. 0.100 Million

1,499,476

1.05

Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million

1,675,252

1.17

Any Others (Specify)

2,400,557

1.68

Clearing Members

104,240

0.07

Non Resident Indians

2,296,317

1.61

Office Bearer

Sub Total

9,534,645

6.67

Total Public shareholding (B)

70,757,222

50.43

Total (A)+(B)

141,564,425

100

(C) Shares held by Custodians and against which Depository Receipts have been issued

(1) Promoter and Promoter Group

(2) Public

Sub Total

Total (A)+(B)+(C)

141,564,425

BUSINESS DETAILS

Line of Business :	Providing of Cable Transmission and Internet Services.

Products/ Services :	Cable Transmission, Internet Service Provider

GENERAL INFORMATION

No. of Employees :

1000 (Approximately)

Bankers :

· Axis Bank Limited

· ICICI Bank Limited

· Yes Bank Limited

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
From Banks
Cash Credit with Banks	0.000	2.090
Vehicle Loans from Banks	1.167	2.810
Term Loan	787.250	1092.917
Working Capital Demand Loan	110.000	250.000
External Commercial Borrowings from Banks	60.197	87.535
Buyers Credit from Banks	664.520	778.356
From Others
Term Loan	1135.564	1781.548

TOTAL	2758.698	3995.256
NOTE: (i) Out of the above Rs. NIL (P.Y. Rs. NIL) (Sanction amount Rs. 700.000 Millions (P.Y. Rs. 500.000 Millions) is secured by item no. (a) and (b) given below and Rs. NIL (P.Y. Rs. 2.090 Millions) (Sanction amount Rs. 50.000 Millions (P.Y. Rs. 50.000 Millions) is secured by item no. (c) and (d) given below, and Rs. NIL (P.Y. Rs. NIL ) (Sanction amount Rs. 100.000 Millions (P.Y. Rs. 50.000 Millions)) is secured by item no. (a) and (b) given below. (a) pari passu hypothecation of present and future movable and immovable Fixed Assets of the Company. (b) pari passu hypothecation of present and future Current Assets of the Company. (c) pari passu hypothecation of present and future inventory and Book Debts of the Company (d) Personal Guarantees given by one of the directors of the Company. (ii) Secured by Hypothecation of Vehicles. (iii) Out of the above, Rs. NIL (P.Y. Rs. 4.167 Millions) secured by item no. (a) and (b) given below and Rs. 168.750 Millions (P.Y. Rs. 243.750 Millions) secured by item no. (a), (b) and (c) and Rs. 498.500 Millions (P.Y. Rs. 605.000 Millions) secured by item no. (a) and (b) and Rs. 120.000 Millions (P.Y. Rs. 240.000 Millions) secured by item no. (a) and (c) (a) pari passu hypothecation of present and future movable and immovable Fixed Assets of the Company. (b) pari passu hypothecation of present and future Current Assets of the Company. (c) Personal Guarantees given by one of the directors of the Company. (iv) Secured by item no. (a) and (b) (a) pari passu hypothecation of present and future movable and immovable Fixed Assets of the Company. (b) pari passu hypothecation of present and future Current Assets of the Company. Fixed Assets of the Company both present and future. (v) Secured by pari passu hypothecation of present and future movable Fixed Assets of the Company. (vi) Out of the above, Rs. 167.227 Millions (P.Y. Rs. 265.486 Millions) secured by item no. (b) and Rs. 292.395 Millions (P.Y. Rs. 108.186 Millions) secured by item no. (b) and (c) and Rs. 204.898 Millions (P.Y. Rs. 404.683 Millions) is secured by (a) and (d). (a) Hypothecation of Assets acquired under LC facility. (b) Secured by hypothecation of Current Assets of the Company both present and future and extension of pari passu hypothecation of movable Fixed Assets of the Company both present and future. (c) Cash Margin of 10% (P.Y.33%) by Fixed deposit with Bank. (d) Personal Guarantee given by one of the directors of the Company. (vii) Out of the above, Rs. 75.000 Millions (P.Y. Rs. 293.750 Millions) secured by item no. (a) (b) and (h), Rs. 418.600 Millions (P.Y. Rs. 481.250 Millions) secured by item no. (a), (b), (c), (e), (9 and (i) , Rs. 468,750,000'(P.Y. Rs. 500.000 Millions) secured by item no. (a), (b), (e), (f and (j) and Rs. 173.214 Millions (P.Y. Rs. 506.548 Millions) secured by item no. id, (d) and (g) (a) pari passu hypothecation of the present and future movable and immovable Fixed Assets of the Company. (b) pari passu hypothecation of the present and future Current Assets of the Company. (c) Personal Guarantees given by one of the directors of the Company. (d) undertaking given by certain shareholders of the Company for non- disposal of their shareholding in the Company so long as Term Loan is outstanding to the tune of Rs. 23.214 Millions (P.Y. Rs. 327.976 Millions). (e) pari passu first charge on present and future book debts, operating cash flows, receivables, commissions, revenues of whatsoever nature. (f) First charge on the uncalled capital of the company. (g) Personal Guarantees given by one of the directors of the Company (P.Y. to the tune of Rs. 350.000, Millions). (h) Pledge of 202,000 (P.Y. 202,000) fully paid equity shares of Gujarat Telelink Private Limited. (i) Lien on 3,500,000 (P.Y. 3,500,000) units of IDFC Fixed Maturity Yearly Series 40 (j) Lien on Fixed Deposits with Bank of Rs. 27.000 Millions (P.Y. Rs. NIL)


Banking Relations :	--

Auditors :
Name :	G. M. Kapadia and Company Chartered Accountants

Advocates and Solicitors :	AZB and Partners Law Offices of Indu Malhotra and Associates Thakore Jariwala and Associates

Wholly Owned Subsidiaries :	Bee Network and Communication Private Limited Binary Technology Transfers Private Limited Hathway C-Net Private Limited Hathway Enjoy Cable Network Private Limited Hathway Gwalior Cable and Datacom Private Limited Hathway Internet Satellite Private Limited Hathway JMD Farukhabad Cable Network Private Limited Hathway Media Vision Private Limited Hathway Space Vision Cabletel Private Limited Hathway United Cables Private Limited Hathway Universal Cabletel and Datacom Private Limited Ideal Cables Private Limited ITV Interactive Media Private Limited Liberty Media Vision Private Limited Vision India Networks Private Limited Win Cable and Datacom Private Limited

Subsidiaries :	Chennai Cable Vision Network Private Limited Channels India Network Private Limited Elite Cable Network Private Limited Hathway ICE Television Private Limited Hathway Sonali Om Crystal Cable Private Limited Hathway MCN Private Limited Hathway Nashik Cable Network Private Limited Hathway Krishna Cables Private Limited Hathway Rajesh Multi channel Private Limited Hathway Software Developers Private Limited UTN Cable Communications Private Limited Gujarat Telelink Private Limited Hathway Bhaskar Multinet Private Limited Hathway Latur MCN Cable and Datacom Private Limited Hathway Channel 5 Cable and Datacom Private Limited Hathway Mysore Cable Network Private Limited Hathway Prime Cable and Datacom Private Limited Hathway Mantra Cable and Datacom Private Limited Hathway Jai Mata Di Sherawali Cable and Datacom Private Limited Hathway Sai Star Cable and Datacom Private Limited Hathway New Concept Cable and Datacom Private Limited Hathway Palampur Cable Network Private Limited Hathway Cable MCN Nanded Private Limited Net 9 Online Hathway Private Limited Hathway Bhawani Cabletel and Datacom Limited Hathway Dattatray Cable Network Private Limited Hathway Bhaskar Pagariya Multinet Private Limited CCN Entertainment India Private Limited Chhattisgarh Broadband Network Private Limited Kokan Crystal Cable Network Private Limited

Associates and Joint Ventures Company :	Pan Cable Services Private Limited Hathway VCN Cabletel Private Limited Hathway Sukhamrit Cable and Datacom Private Limited Hathway Space Vision Hathway Jhansi JMDSR Cable and Datacom Private Limited Hathway Jai Mata Di Balaji Cable Network Mantra Cable Mona Cable Network

Companies / Firms under the Significant Influence of Directors / Shareholders :	Globus Stores Private Limited R and S Business Centre Outlook Publishing (India) Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount

199800000	Equity Shares	Rs.10/- each	Rs. 1998.000 Millions
200000	Non-Cumulative Redeemable Preference Shares	Rs.10/- each	Rs. 2.000 Millions
	TOTAL		Rs. 2000.000 Millions

Issued, Subscribed and Paid-up Capital :

No. of Shares	Type	Value	Amount

142857100	Equity Shares	Rs.10/- each	Rs. 1428.571 Millions
48000	0% Non-cumulative Redeemable Preference Shares	Rs.10/- each	Rs. 0.480 Millions
	TOTAL		Rs. 1429.051 Millions

Note:

· 74,236,874 (74,236,874) shares are allotted as fully paid-up bonus shares out of Securities Premium Account

· 1 (1) share has been allotted as fully paid-up under the Employee Stock Option Plan

· 11501788 Equity Shares of Rs.10 Each were issued on conversion of Fully and Compulsorily Convertible Debentures (FCCD)

· 20000000 Equity Shares of Rs. 10 Each were issued as fully paid-up shares through Initial Public Offer

· The Preference Shares are redeemable on or before 12^th December 2012 at the option of the Board of Director

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		1429.051	1429.051	1114.033
2] Employee Stock Options Outstanding		24.157	19.354	11.884
3] Reserves and Surplus		11999.692	11999.692	5304.635
4] (Accumulated Losses)		(4994.524)	(4591.402)	(3756.370)
NETWORTH		8458.376	8856.695	2674.182
LOAN FUNDS
1] Secured Loans		2758.698	3995.256	3472.953
2] Unsecured Loans		0.000	0.000	2472.400
TOTAL BORROWING		2758.698	3995.256	5945.353
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		11217.074	12851.951	8619.535

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		5384.946	5274.842	5468.868
Capital work-in-progress		441.475	240.365	452.086

INVESTMENT		4384.465	6662.620	2449.721
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS and ADVANCES
	Inventories	18.802	24.961	43.755
	Sundry Debtors	1611.946	1214.568	1206.512
	Cash and Bank Balances	253.760	745.308	303.066
	Other Current Assets	0.000	0.000	0.000
	Loans and Advances	1272.674	1039.080	1223.907
Total Current Assets		3157.182	3023.917	2777.240
Less : CURRENT LIABILITIES and PROVISIONS
	Sundry Creditors	1171.053	1346.818	1583.781
	Other Current Liabilities	933.509	963.900	902.308
	Provisions	46.432	39.075	42.291
Total Current Liabilities		2150.994	2349.793	2528.380
Net Current Assets		1006.188	674.124	248.860

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		11217.074	12851.951	8619.535

PROFIT and LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	4738.667	4020.243	3956.623
		Other Income	210.940	47.377	87.210
		TOTAL (A)	4949.607	4067.620	4043.833

Less	EXPENSES
		Operational Expenses	2220.858	1931.745	1815.208
		Staff Cost	416.462	327.864	378.390
		Selling, Administration and General Expenses	1201.815	1065.850	946.342
		Provision for Bad and Doubtful debts	0.000	0.000	140.994
		Loss on sale of Set Top Boxes	0.000	0.000	25.337
		Amortisation	154.972	170.442	188.194
		Impairment of Tangible / Intangible Assets	27.030	17.677	0.000
		Provision for Doubtful Advances / Investments / Receivables from Entities Under Control / Significant Influence	87.296	65.344	224.282
		Provision for Bad and Doubtful Debts for Previous years	56.594	162.324	235.297
		Depreciation Write-back for Previous Year	0.000	(64.398)	0.000
		Loss / (Gain) on Foreign Exchange Fluctuation (Net)	(11.556)	(5.196)	66.897
		TOTAL (B)	4153.471	3671.652	4020.941

Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		796.136	395.968	22.892

Less	FINANCIAL EXPENSES (D)		386.377	509.097	418.618

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		409.759	(113.129)	(395.726)

Less/ Add	DEPRECIATION/ AMORTISATION (F)		791.401	715.710	628.413

	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(381.642)	(828.839)	(1024.139)

Less	TAX (H)		0.000	0.000	10.592

	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(381.642)	(828.839)	(1034.731)

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(4591.402)	(3756.370)	(2694.304)

	Prior Period Adjustments		(21.480)	(6.193)	(24.167)
	Gain on Foreign Exchange Fluctuation		--	--	(3.168)

	BALANCE CARRIED TO THE B/S		(4994.524)	(4591.402)	(3756.370)

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.000	0.000	1.495
	TOTAL EARNINGS		0.000	0.000	1.495

	IMPORTS
		Capital Goods	848.210	185.292	944.753
		Stores, Spares and Others	12.261	9.720	5.194
	TOTAL IMPORTS		860.471	195.012	949.947

	Earnings / (Loss) Per Share (Rs.)		(2.82)	(6.98)	(8.64)

QUARTERLY RESULTS

PARTICULARS	30.09.2011	31.12.2011	31.03.2012	30.06.2012
	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	1285.210	1276.590	1354.570	1362.580
Total Expenditure	1077.450	1055.410	1121.420	1169.760
PBIDT (Excl OI)	207.760	221.180	233.150	192.820
Other Income	33.080	26.260	62.550	24.580
Operating Profit	240.840	247.440	295.700	217.400
Interest	87.110	119.750	113.320	133.380
Exceptional Items	(4.840)	(30.800)	21.300	(6.150)
PBDT	148.890	96.890	203.680	77.870
Depreciation	252.070	279.660	271.630	236.580
Profit Before Tax	(103.180)	(182.780)	(67.940)	(158.710)
Tax	0.000	0.000	0.000	0.000
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	(103.180)	(182.780)	(67.940)	(158.710)
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	(103.180)	(182.780)	(67.940)	(158.710)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(7.71)	(20.38)	(25.59)

Net Profit Margin (PBT/Sales)	(%)	(8.05)	(20.62)	(25.88)

Return on Total Assets (PBT/Total Assets}	(%)	(4.47)	(9.99)	(12.42)

Return on Investment (ROI) (PBT/Networth)		(0.05)	(0.09)	(0.38)

Debt Equity Ratio (Total Liability/Networth)		0.58	0.72	3.17

Current Ratio (Current Asset/Current Liability)		1.47	1.29	1.10

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	Yes
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

OPERATIONS

During the year, the total income of the Company was Rs. 4949.608 Millions on standalone basis and Rs. 9066.794 Millions on consolidated basis as compared to the last year’s total income of Rs. 4067.620 Millions on standalone basis and Rs. 7399.818 Millions on Consolidated basis respectively. The Net Loss After taxation and Exceptional Items has come down and stood at Rs. 381.642 Millions on standalone basis and Rs. 236.288 Millions on consolidated basis.

VARIATION IN UTILIZATION OF FUND RAISED THROUGH INITIAL PUBLIC OFFER

Out of the total amount raised through the Initial Public Offer (IPO) of the Company, Rs. 2876.048 Millions have been utilized as of March 31, 2011 in accordance with the objects set out in the 'Objects of the Issue' section in the Prospectus for Initial Public Offer of the Company. During the Financial Year 2010-11 the Telecom Regulatory Authorities of India (TRAI) had recommended to the Ministry of Information and Broadcasting the digitalization plan that involves introduction of digital cable services across India. Considering the change in business environment, it was thought appropriate to pursue digitalization more aggressively than hitherto planned in their original Objects of the Issue and to reduce the debts by way of repayment of certain high cost debts.

In view of the above, the members of the Company had approved the variation in utilization of funds raised through Initial Public Offer through postal ballot in terms of provisions of Section 192A of the Companies Act, 1956, read with provisions of the Companies (Passing of the Resolution by Postal Ballot) Rules, 2001 on 21st June, 2011.

CABLE DISTRIBUTION

During the year the Telecom Regulatory Authorities of India (TRAI) recommended a digitalization plan to the Ministry of Information and Broadcasting that involves introduction of digital cable services across India. The digital plan is meant to improve consumer viewing experience in terms of number of Channels, providing digital quality to the consumers as against current analogue picture quality, to curb the revenue leakage at various level and ultimately to increase transparency in reporting numbers. The Company is planning to implement additional services like High Definition (HD), Video-on-Demand (VOD), Pay-per-View (PPV), Games-on-Demand, etc. to more effectively compete with Direct to Home (DTH) and Internet Protocol Television (IPTV).

As per the report of Media Partners Associates (MPA) 2011, out of 239 million homes in India, 147 million homes have TV set, with 61% CATV penetration. According to MPA estimates, digital cable is expected to reach 34 million homes by 2020. Digital cable share will reach about 33% which is about at 6% levels in 2011. Larger number of channels, better picture quality, choice of audio and other value added services are expected to be key drivers of digital cable in the country. Digital cable will face challenge from DTH players in coming years. MSO are better placed to counter DTH players, their key strengths like affordable pricing, prompt customer support, niche local content and local area offices for consumer interface will help them to grow faster on digital platform.

Subject has a reach of approximately 8.4 million Cable TV homes for its analogue CATV services. They have over 15,000 kilometers of hybrid fiber optic cable which is spread over 140 Cities and Towns. Subject has commenced a rapid digitalization process and at present they have deployed close to 1.5 million digital set top boxes in CAS and Non - CAS areas. Subject is the only MSO with focus on digitization of non - metro markets. It has established 19 digital head-ends in the country.

INTERNET MARKET

India has around 11.89 million broadband subscribers as on 31st March 2011. Broadband has registered a quarterly growth of 8.17% and year-on-year growth of 35.49%. Cable modem subscribers' accounts for only 4% that is only 0.801 million internet subscribers. Cable provides big potential for growth of broadband penetration in the country considering the cable universe of 95 million CATV homes.

Subject is the largest MSO offering broadband services in 21 cities. Subject is Category "A" Internet Service Provider (ISP) providing broadband services to retail and corporate segments in various states. Subject has 14,32,937 homes ready for catering for internet services. As of 3151 March 2011, Subject has 3,48,345 internet subscribers with all India rank of 5th largest ISP player in the country. Subject has market leadership in terms of reach, revenues and subscribers. With high quality and high capacity network, Subject is well placed to garner large share of growing broadband market. Amongst private sector, Subject is India's 2nd largest wired broadband service provider. According to the latest TRAI report, Subject Broadband wins the top spot in overall quality of service in Mumbai. Subject is the first ISP to introduce the Simply Unlimited plans for retail customers. The Company has started offering value added services like Web products (e.g. website builder, domain name registration etc), online tutorials with Topper learning to their customers and soon they will be adding more services like games on demand, movies on demand and security solutions (anti virus).

BACKGROUND

The Company is Multi System Operator (MSO) and engaged in distribution of television channels through analog and digital cable distribution network and internet services through cable.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY OVERVIEW

Cable Television forms the backbone of Television Distribution in India. It is well penetrated, particularly in urban regions. As a consequence, it has established   itself  as  a  robust  mass  medium  for  entertainment   and information  and is available to more than 94 million  consumer  households across India. This amounts to almost 64 per cent of television-owning homes in the  country.  As such, Cable TV remains the  most  prolific  means  of

distributing  television content in the country. This universe is  expected to  grow  to over 100 million subscribers by FY 2014 and  will  remain  the largest distribution platform relative to DTH and IPTV.

Since  the  current  medium of cable distribution is  largely  analogue  in nature, which is un - addressable, this leads to leakage of revenue through the  value chain. Digitization/ addressability is the solution to this.  On digitization, the opportunity in cable distribution revenue is expected  to be Rs. 300000.000 Millions annually.

Cable  TV is expected to reap the benefits of mandatory  digitization.  The Telecom  Regulatory  Authority of India (TRAI) has recently  recommended  a four  phase digitization for the industry. It anticipates  digitization  to commence  from  31st March 2012 (Phase I: covering Four  metros  of  Delhi, Mumbai,  Kolkata and Chennai) and thereafter covering the entire nation  by 31st  December 2014. There remain steps prior to achieving  this  scheduled roll-out. Most important being amendments to the Cable Television  Networks Regulation  Act,  1995 which will be through legislative approvals.  It  is expected  that  mandatory digitization of Cable TV networks will  have  far reaching  consequences  for  the entire media industry.  It will  be  most important to improve the economics of Cable TV companies and  broadcasters. It will also significantly enhance customer experience empowering  him  to pick  and  choose the content he/ she chooses to watch.  DTH  platforms  of which  there  are six in the fray have, resorted to  predatory  pricing  to acquire market share. These companies continue to bleed extensively.  Cable TV  enjoys  several  advantages over DTH such as  Bundling  with  broadband services, lower Subscriber Acquisition Costs (SAC), higher channel carrying capacity,  Interactivity and better quality in all weather  conditions.  In fact,  in markets where both cable TV and DTH compete the former retains  a lion`s share of Pay TV customers.

Broadband  Services  -  The TRAI has announced a  National  Broadband  Plan (2010) with a target to reach 160 million of India`s 275 million households by end 2014. This plan envisages the use of several alternate  technologies which  includes  Fiber-to-the-Home  (FTTH)  and  Fiber-to-the-Curb  (FTTC). Hybrid fiber coaxial infrastructure plays a key role in the  implementation of last mile roll out. The infrastructure deployed by the cable TV industry is  therefore  likely  to play a key role in the success  of  the  National Broadband Plan.

BUSINESS OVERVIEW:

They are a world class cable television services / broadband service provider in  India. They along with their subsidiaries and associates serve a  customer universe of nearly 8.4 million subscribers. They serve this universe directly and indirectly (through local cable operators).

Some of their market leading statistics are listed below:

* Largest number of cable digital subscribers more than 1.4 million

* Largest direct points approximating to 5,80,000

* Largest cable broad band subscriber base of 3,75,000 - 45% market share

* Largest broadband enabled network 1.4 million homes

Their cable  network presence is across the top 140 cities  and  towns.  Their Broadband services  are  available in the top  21  cities.  This  national  footprint is the most dominant across the industry.

The Company is supported by 71 Analogue and 19 Digital Head-ends and more than approximately 15,000 kilometers of HFC network. Approximately 90% of subscribers are in their networks by their addressable platforms.

They have earned several accolades:

* "Best cable operator of the year" by the Indian Telly Awards seven times.

*  Number 1 in QoS for Broadband Services in Mumbai - TRAI  (QoS)  Customer Satisfaction Survey Report 2009-2010 -Mumbai Circle.

BUSINESS STRATEGY:

Their business strategy is to mine their Universe effectively. They are  focusing all their attention/ resources and management capabilities  preparatory  to mandatory digitization.

Steps being taken are as follows:

* Investing in backend infrastructure

* Working with vendors to provide their customers the best user experience.

* Closing out enhanced vendor credit limits

* Educating the local cable operators and customers

* Investing in value added services

* Improving their front end infrastructure - customer touch points

* Changing the organization ethos to be more retail focused

* Enhancing marketing and sales capabilities

They anticipate  that  market forces will drive  cable  TV  players  towards subsidization  of  STB`s.  The  company already  sources  STB`s  on  highly competitive commercial terms that include attractive financing of the  same namely vendor credit. With increased volumes they feel these commercial terms could  be  further  enhanced.  They are  well  positioned  to  support   the Government`s policy for Mandatory Cable Digitization.

Pending mandatory  digitization the focus is to invest in  digitizing their customer base through "voluntary digitalization".

The benefits of voluntary digitalization are as follows:

* It makes us ready for the mandatory environment and helps us iron out any glitches

* It increases the customer connect

* Enables us to charge higher ARPU`s

* Gives the customer a superior experience. Prevents churn within the cable industry and to alternative technologies.

BROAD BAND BUSINESS:

They have invested significantly in this business in the last couple of years in  the back end and front end to give the customer a superior  experience. They have also strengthened their management team. They have already rolled  out high  bandwidth  (2 Mbps and 5 Mbps) products at market leading  rates. They believe  that  wire line distribution of broadband shall be  the  preferred medium of distribution for higher bandwidth requirement.

Mobile broadband which is being addressed by wireless is being  effectively countered by us with Wi-Fi. Their strategy will be to increase penetration of their services in the 1.4 million homes (Subscribers 3,75,329) already passed by them.  Going forward however it is their intention to grow the  numbers  of homes passed progressively in their universe.

REGULATION:

Their business is subject to regulation by the Telecom Regulatory  Authority of India ("TRAI"), the Ministry of Information and Broadcasting ("MIB") and Department of Telecommunication ("DOT").

PERFORMANCE REVIEW

Standalone Operating Revenue for the company for the year ended 31^st March 2011 stood at 4730.000 Millions which represents a growth of 18% over the previous year.  EBITDA grew from Rs. 746.000 Millions to Rs. 1119.000 Millions (+50%).  PAT for the  year  stood at a loss of Rs. 400.000 Millions which compares with  a  loss  of Rs.830.000 Millions in the previous year.

CONTINGENT LIABILITIES (AS ON 31.03.2011)

a) The Company has given a counter indemnity favouring the bankers to the extent of Rs.60.988 Millions (Previous Year Rs. 59.788 Millions) for issue of Bank Guarantees.

b) The Company has given Corporate Guarantee of Rs.742.345 Millions (Previous Year - Rs. 438.250 Millions) to a Bank towards various credit facilities given by the Bank to its Subsidiary Companies.

c) Outstanding Letters of Credit Rs.227.846 Millions (Previous Year Rs. 182.485 Millions) secured against assets acquired under LC facility, hypothecation of brsent and future current assets of the Company and extension of pari passu hypothecation of brsent and future movable fixed assets of the Company. This includes Rs. NIL (P. Y. Rs. 39.237 Millions) utilised for one of the subsidiary, Gujarat Telelink Private Limited.

d) Pending finalization of negotiations with one of the broadcasters, the Company has accounted pay channel cost net of discounts expected from such broadcaster. The Company as well as few broadcasters have claims and counter claims against each other, which are yet to be finalized and settled. The contingent liability in respect of such claims wherever ascertained, has been considered under Claims against the Company not acknowledged as debts.

e) The relevant Authority under the Karnataka Sales Tax / VAT had initiated proceeding to reassess the Company's liability for the financial years 2001-02 to 2008-09 on the argument that light energy created while using OFC network for the purposes of transmission is goods and hence liable to tax under relevant state legislation.

On writ petition, the Karnataka High Court has held against the Company. On further appeal, the Honourable Subrme Court remanded the matter to the Tribunal. However, Sales Tax Tribunal did not entertain the appeal of the Company as no assessment was made.

The Assessing Officer, acting on Nil returns filed by the Company, has proposed to complete best judgement re-assessment to tax light energy as goods. This may result in approximate demand of Rs. 54.406 Millions (Previous Year Rs. 54.406 Millions). The Company has filed a detailed reply to the show cause notice issued by the assessing officer and the matter is pending.

f) Pursuant to various amendments under Karnataka Entertainment Tax Act, 1958 to levy entertainment tax on LCO's and MSO's, the Government of Karnataka has issued various notices for re-assessment for various periods. The Company has challenged the notices and validity of amendments with the Hon'ble High Court of Karnataka. The Hon'ble High Court of Karnataka has issued stay order against such notices on payment of Rs. 6.432 Millions being 50% of the Basic Entertainment Tax liability.

The Company has filed a petition before the Honourable Court of Andhra Pradesh challenging the virus of the amendment to the Andhra Pradesh Entertainment Tax Act, 1939 which has resulted in the levying of the Entertainment Tax on MSOs. The petition has been admitted and the levy and the action pursuant thereto have been ordered to be stayed.

The above matters are pending and based on the outcome of the respective petitions, liability may extend to period beyond notice period. The contingent liability in respect of claims is considered as part of Claims against Company not acknowledged as debts below.

g) Income Tax Matters

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010
Income Tax Matter under appeal	39.897	0.000

h) Other Claims against the Company not acknowledged as debts are as under:

	(Rs. In Millions)
Matters With	31.03.2011	31.03.2010
Broadcaster / Channels	38.060	101.509
Operators	53.762	53.741
Entertainment Tax Department	53.649	52.675
Other Statutory Departments	0.581	6.767
Other Miscellaneous Matters	1.515	12.552
TOTAL	142.414	227.246

FIXED ASSETS

Intangible Assets

· Goodwill

· Cable Television Franchisee

· Movie and Serial Rights

· Softwares

· Bandwidth Rights

Tangible Assets

· Plant and Machinery

· Air Conditioners

· Structural Fittings

· Furniture and Fixtures

· Mobile, Pagers and Telephones

· Computers

· Office Equipments

· Electrical Fittings

· Motor Vehicles

· Movie Master Tapes

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2012

(Rs. in millions)

Sr. No.	Particular	Quarter Ended			Year Ended
		3 Months Ended	Preceding 3 Months Ended	Corresponding 3 Months Ended in the previous year	Previous Year Ended
		30.06.2012	31.03.2012	30.06.2011	31.03.2012
		Unaudited			Audited
1.	Net Sales/Income from Operations	1362.577	1354.570	1225.168	5137.013

2.	Expenditure
	Purchase of stock in trade	33.995	29.967	3.800	98.082
	Employees benefits expenses	101.585	76.825	104.404	380.298
	Pay channel cost	389.068	387.929	347.451	1436.108
	Other expenses	599.534	626.696	577.988	2366.535
	Depreciation and amortization expenses	236.580	271.630	265.024	1065.402
	f) Total	1360.762	1393.047	1298.667	5346.425

3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	1.815	(38.477)	(73.499)	(209.412)

4.	Other Income	24.582	43.757	45.125	148.219
	Foreign Exchange Gain	(45.580)	18.797	7.114	1.817

5.	Profit Before Interest and Exceptional Items (3+4)	(19.183)	24.077	(21.260)	(59.376)

6.	Interest	133.381	113.381	95.960	408.532

7.	Profit After Interest but before Exceptional Items (5-6)	(152.564)	(89.241)	(117.220)	(467.908)

8.	Exceptional Items	6.244	(20.473)	30.743	37.703
	Prior Period Adjustments	(0.098)	(0.830)	0.058	11.121

9.	Profit from Ordinary Activities before Tax (7+8)	(157.710)	(67.938)	(148.021)	(516.732)

10.	Tax Expense	--	--	--	--

11.	Net Profit from Ordinary Activities after Tax (9-10)	(157.710)	(67.938)	(148.021)	(516.732)

12.	Extraordinary Item (net of expense)	--	--		--

13.	Net Profit for the period (11-12)	(157.710)	(67.938)	(148.021)	(516.732)

14.	Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	1428.571	1428.571	1428.571	1428.571

15.	Reserves Excluding Revaluation Reserve	--	--	--	6488.435

16.	Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised
	a) Basic and diluted EPS before extraordinary items	(1.11)	(0.48)	(1.04)	(3.62)
	b) Basic and diluted EPS after extraordinary items	(1.11)	(0.48)	(1.04)	(3.62)

17.	Public Shareholding
	-Number of Shares	72049897	72049897	47337397	72049897
	- Percentage of Shareholding	50.43	50.43	33.13	50.43

18.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	--	--	--	--
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	--	--	--	--
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	--	--	--	--

	b) Non Encumbered
	- Number of Shares	70807203	70807203	95522703	70807203
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100	100	100	100
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	49.57	49.57	66.87	49.57

Particulars	3 Months ended on June 30, 2012
Pending at the beginning of the quarter	Nil
Received during the quarter	Nil
Disposed of during the quarter	Nil
Remaining unresolved at the end of the quarter	Nil

Notes to Standalone Accounts

1. The above results were reviewed by the Audit Committee on Aug 10, 2012 and approved by the Board of Directors in its meeting held on Aug 10,2012. The statutory auditors have carried out limited review of the financial results of the Company for the quarter ended 30th June 2012.

2. The Company is a Multi System Operator providing Cable Television Network Services, Internet Services and allied services which is considered as the only reportable segment The Company's operations are based in India.

3. The figures for the responding periods have been regrouped, wherever necessary, to make them comparable.

4. The Company had made an application to the Central Government for approval for payment of remuneration to the Managing Director and CEO from August 8, 2010 for a period of three years in excess of limits prescribed under section 198 and 309 read with Schedule XIII to the Companies Act, 1956. The said approval is pending.

5. During the year 2009-10, due to certain business exigencies in the state of Tamil Nadu, local cable operators and subscribers had migrated to competing Multi System Operator (MSO) and other service providers. As a consequence, the Company relocated part of its assets to other States so as to maximize the economic returns to the Company and is in the process of recovering balance access devices and other assets. However, as a matter of abundant caution, additional provision has been made as an Exceptional Item as disposed hereunder:

Period (Rs. In Millions)

April 2012 to June 2012 Nil

Janualy 2012 to March 2012 32.873

April 2011 to June 2011 21.729

April 2011 to March 2012 104.333

The balance WDV of the Distribution Equipments, Access Devices and Other Assets located in the State of Tamilnadu as on 30th June 2012 is Rs. Nil.

6. In addition to the Note 5 above, the Exceptional items include:

Exceptional Items	3 Months Ended	Preceding 3 Months Ended	Corresponding 3 Months Ended in the previous year	Year to date figures for the current period ended
	30.06.2012	31.03.2012	30.06.2011	31.03.2012
Expenses on Account of Digital Addressable System (DAS)	6.244	--	--	4.041
Provision for Doubtful Advances / Investments / Receivables from Entities Under Control / Significant Influence	--	(48.575)	10.647	(60.226)
Expenses on Account of Digital Addressable System (DAS)	--	4.041	--	--
Impairment / Loss on Shortages of Tangible Assets of Chennai	--	32.873	21.729	--
Sundry Balance Write-back for Previous Year for Chennai	--	(8.811)	(1.633)	(10.444)
Impairment and write off of Assets in respect of operations in Tamil Nadu				104.333
TOTAL	6.244	(20.473)	30.743	37.703

7. The Initial Public Offer (IPO) proceeds have been utilized as per objects as stated in the prospectus dated February 17, 2010 and as subsequently modified and approved by the shareholders by an Ordinary resolution through Postal ballot as per the provisions of Section 192A of Companies Act, 1956. The details are as under.

(Rs. in millions)

Particulars
Amount received from IPO		4800.000
Utilization of funds	Amount Proposed	Amount utilized up to 30^th June 2012
Acquisition of Customers	150.000	123.947
Investment in the development of their digital capital expenditure, services and set top boxes Investment in the development of their broadband infrastructure, capital expenditure and services	3250.000	2301.447
Repayment of loans (includes temporary repayment of WCDL Rs.38.861 millions as interim use)	1900.00	1894.342
General Corporate Purposes	500.000	130.425
TOTAL	5800.000	4450.160
Less: To be funded by Supplier Credit / Buyers Credit and External Commercial Borrowings	1000.000	318.891
TOTAL	4800.000	4131.270

Balance Unutilized		668.730

Unutilised Balance has been invested as stated below:

	Rs. in millions
Mutual funds	492.830
Bank Balance	--
Margin Money in Banks	175.900
TOTAL	668.730

WEBSITE DETAILS

Overview

They at Subject are guided by a vision - "To be a single point access provider, bringing into the home and work place a converged world of information, entertainment and services. Promoted by the Raheja Group, Subject is one of the largest MSO and cable broadband service providers in India. The Company's Cable operations straddle across key Indian geographies and offers cable television services across 140 cities and towns and high-speed cable broadband services across 21 cities. The company has established 19 digital head-ends in the country. Subject has been awarded the best MSO by the Indian Telly Awards for its quality Cable TV and Broadband Internet Services seven times and "Star News Brand Excellence Awards for Brand Excellence in Digital Products for Internet Services in 2011".

Subject holds a PAN India ISP license and is the first cable television services provider to offer broadband Internet services. It is currently India’s largest cable broadband services provider, with approximately 1.4 million two-way broadband enabled homes. Its subscriber base constitutes approximately "52 %" of the total cable broadband market in India.

In addition to their cable television and broadband service offerings, Hathway also has under its umbrella -Hathway Music Non Stop 24 hours Hindi music channel, and various local channels.

Providence Equity Advisors India Private Limited (Providence) is a major corporate shareholder of the Company and holds 9.90% in the equity share capital of the Company under the Public Shareholding Category. Providence is a leading global private equity firm specializing in equity investments in media, communications, information technology and education companies around the world. Providence has invested funds with over $23 billion in more than 100 companies operating over 20 countries since its inception in 1989. Providence is headquartered in Providence, Rhode Island (USA) and has offices in New York, London, Los Angeles, Hong Kong and New Delhi.

NEWS

PRESS RELEASE

HATHWAY CABLE'S HD PUSH

Indiantelevision.com Team

(7 November 2011 10:52 pm)

MUMBAI: Hathway Cable and Datacom has become the first national multi-system operator (MSO) to launch high definition service as it gears up to fight against direct-to-home (DTH) operators for upscale subscribers in the main metros where it has a footprint.

Limiting its offer to Mumbai, Delhi, Hyderabad and Bangalore, India's leading MSO has rolled out its HD service with a pack of eight television channels - Colors, Ten HD, Discovery, Movies Now, History, UTV Stars, TravelXP and MTunes.

Hathway is in negotiations with Star for its HD channels. Also out of the menu are the two popular sports channels - ESPN and Star Sports.

Hathway, however, believes it has a distinct advantage over DTH by bundling broadband with HD.

"We are looking at adding 50,000-75,000 HD subscribers a year. We are taking a niche rather than a mass route. The killer application for us is the bundling of the HD offering with broadband. We also have a cost advantage over DTH," Hathway Cable and Datacom managing director and chief executive officer K Jayaraman tells Indiantelevision.com.

For the pure HD service, Hathway is charging Rs 6666 for a year (excluding taxes). The HD Lite plan includes subscription of HD and SD channels (160 + channels).

In the bundled plan, HD Max is available for Rs 8888 (excluding tax). It has features of HD Lite plans along with broadband for connection with 2 Mbps speed and 40 GB download.

HD Max + is available for Rs 9999. In addition to HD Lite features, it has 5 Mbps broadband speed with download limit of 60 GB. Hathway has a fourth offering for cable operators. "As a wholesale model, we are charging cable operators Rs 5500. It is up to them to fix the price they sell to customers.," says Jayaraman.

Subscribers can pay Rs 3000 for the HD box or return it to Hathway after a year. Clearly, the MSO's strategy is to bundle the hardware with one-year of subscription for content.

"The HD boxes cost us Rs 0.003 million. We have not included HD content package at this stage. As we tie up more HD content, we will start packages. But what we have smartly done is bundle broadband with HD content," says Jayaraman.

Hathway's twin goals are to move up the value chain and protect its direct subscribers from migrating to DTH.

The HD service is enabled by Media Highway set-top box software.

CMT REPORT (Corruption, Money Laundering and Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 55.77
UK Pound	1	Rs. 88.04
Euro	1	Rs. 69.62

INFORMATION DETAILS

Report Prepared by :

DPT

SCORE and RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		32

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial and operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

18.802

24.961

43.755

1611.946

1214.568

1206.512

253.760

745.308

303.066

0.000

0.000

0.000

1272.674

1039.080

1223.907

3157.182

1171.053

933.509

963.900

902.308

46.432

39.075

42.291

2150.994

1006.188

674.124

248.860

(7.71)

(25.59)

(8.05)

(25.88)

(4.47)

(12.42)

(0.05)

(0.38)

0.58

1.47

Unit