GTPL Hathway Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2020

1. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on April 21,2020 and have been audited by the statutory auditors of the Company.

2. The 'New Regulatory Framework' (the New Framework') for Broadcasting & Cable services sector notified by Telecom Regulatory Authority of India ('TRAI') came into effect from February 01, 2019. The new framework resulted in change of pricing mechanism and arrangements amongst the Company, Local Cable Operators ('LCOs') and Broadcaster. The current year was the first full year of implementation of the New Framework across the industry. Implementation of new regime prima facie resulted in change LCOs' earning profile adversely and restricted their cash flow cycle, consequently, lowering their ability to pay their dues to the Company Pursuant to above change and assessment carried out by the management, the Company has recognised Rs.790.57 million towards impairment of trade receivables. Being primarily due to change in regulations and having one-time, non - routine material impact on financial results, the same is disclosed as 'Exceptional item" in Financial Results. Exceptional item for the year ended March 31,2019 represents impairment of trade receivables aggregating Rs.549.97 million.

3. In assessing the impact of COVID-19 on recoverability of trade receivables including unbilled receivables, contract assets and contract costs, inventories, intangible assets, investments and margins of on-going project, the Company has considered internal and external information up to the date of approval of these financial results. Further, revenue for some on-going agreements has been considered based on management's best estimates. Based on current indicators of future economic conditions the Company expects to recover the carrying amount of these assets & revenue recognised. The impact of the COVID-19 pandemic may be different from that estimated as at the date of approval of these (consolidated) financial results and the Company will continue to closely monitor any material changes to future economic conditions.

4. During the previous year, on account of fire at the warehouse on January 11, 2019, the Company has recognised insurance claim of Rs. 90.25 million The Company has submitted all required information to insurance surveyor and final report is pending due to Iock down on account of COVID-19. The management estimates that the Insurance claim amount is fully recoverable.

5. The Department of Telecommunications, Ministry of Communications, Government of India, Gujarat Telecom Circle, Ahmedabad ("DOT"), vide its letters, the latest being February 15, 2020, have raised demand, consisting of Principal amount of Rs. 2,286.5 million and interest, penalty and interest on penalty (as of January 15, 2020) of Rs. 7,068.8 million towards license fee in respect of the company's Internet Services Provider's License (ISP). The Company has made representation/s contesting the basis of such demand of DoT. The Company is currently awaiting outcome of its representation/s before deciding future course of action in the matter. Considering the Company's assessment of this demand, uncertainty relating to the outcome of the Company s representation to the DOT and based on the opinion of legal expert, the Company is confident that it has good grounds on merit to defend itself in the above matter. Accordingly, the Company is of the view that no provision is necessary in respect of the aforesaid matter in the financial results.

6. The Company has investment aggregating Rs. 2,269 million in its subsidiaries, Joint Ventures and Associates. Of the above.

- The Company is in the process of restructuring 14 Subsidiaries, in which, the Company is having investments aggregating Rs.694 million and trade receivables of Rs.813 million

- Further, the Company has investment aggregating Rs.678 million in certain subsidiaries whose corresponding net-worth are lower than the Company's equity investment in said subsidiaries

Based on the valuation done by an independent valuer as at March 31, 2020 and the assessment carried out by the Company having regard to the long-term investments and other strategic plans, impairment provision of Rs.63 million towards impairment in investment as at March 31, 2020, is considered adequate in view of the management and no further provision is considered necessary.

7. The Company has adopted Ind AS 116 Leases with a modified retrospective approach effective April 01, 2019. This standard sets out the principles for recognition, measurement, presentation and disclosure of leases. Ind AS 116 requires lessee to recognize asset and liabilities for all the leases and correspondingly recognizes depreciation and interest cost instead of rent expenses as hitherto done under erstwhile standard on leases. The adoption of the standard on transition date resulted in increase of Right of use assets and lease liabilities by Rs. 179.43 million. Following table summarizes impact on profit for the quarter and year ended March 31,2020.:-For Table, kindly refer Corporate Announcements on www.bseindia.com.

8. The Company is appointed as Project Implementation Agency (PIA) for Package B of Bharat Net Phase - II Project in the state of Gujarat by Gujarat Fibre Grid Network Limited (GFGNL). Under the project, the Company will connect 3,767 Gram Panchayats by implementing end-to-end Optic Fibre Cable (OFC) and digital infrastructure with Centralized network operations centre at Gandhinagar in Gujarat. The Company, along with its consortium partner, will implement this said project. The Company has commenced the commissioning and lying of OFC from February 2019. During the quarter and year ended March 31, 2020, the Company has recognised total income and total expenses as below:-:-For Table, kindly refer Corporate Announcements on www.bseindia.com.

9. As per Ind AS - 108 - "Operating Segment" segment information has been provided under the Notes to Consolidated Financial Results.

10. During quarter ended September 30,2019, the Company has elected an option of reduced income tax rate of 22% available under section 115BAA which is made effective vide Taxation Laws (Amendment) Ordinance 2019 from assessment year beginning on or after the April 01, 2020. Pursuant to election of above option, the Company has reversed deferred tax assets amounting to Rs. 148.61 million due to reduction in effective income tax rate from 34.94% to 25.17%.

11. The figures for the three months ended March 31, 2020 & March 31, 2019 are the balancing figures between the audited figures with respect to full financial year and the published unaudited year to date figures up to the third quarter of the current financial year which were subject to limited review

12. The Board of Directors have recommended dividend of Rs. 3 per fully paid up equity share of Rs. 10/- each for the financial year ended March 31,2020 on outstanding paid up share capital of the Company as on date, in its board meeting held on April 21,2020, subject to approval of shareholders at ensuing Annual General Meeting of the Company.

13. Previous year's / period's figures have been regrouped / rearranged wherever necessary to conform to the figures of the current period.

Anirudhsinh Jadeja
Managing Director