Quint Digital Ltd Management Discussions

Company Overview

Quint Digital Media Limited (hereafter referred to as ‘the Company), Indias leading multi-brand digital media and media- tech group, is the only new-age digital media and technology player listed on an Indian stock exchange, operating with two prominent digital platforms, namely "www.thequint.com", and "www.hindi.thequint.com". These platforms were obtained on the 1st of July, 2020 by acquiring the digital content business of Quintillion Media Private Limited, a wholly owned subsidiary of Quint Digital Media Limited. Quint Digital Media Limited is one of the fastest-growing digital content enterprises in India. With its flagship product, TheQuint.com in English and Hindi (hindi.thequint.com), it has pioneered a new form of mobile-first, social-native digital journalism and storytelling.

The Companys digital platforms broadcast news, opinions, and current affairs content in India and the rest of the world across multiple categories, such as governance, politics, economy, business, entertainment, sports, technology, education, lifestyle, health and fitness, and gender issues, among others. The content is optimised for digital engagement and written in the language of the target audience. Live news, blogs, fresh wires, photographs, videos, articles, quint lab (interactive content, special projects, statistics/ infographics, etc.), explainers, audio podcasts, and fact checks are offered by the Company to accommodate the audiences diverse interests and viewing habits. The Quint draws meaning from the systematic chaos that is the world of today and also delivers the story on mobile devices via videos, op-eds, infographics, animations, and documentaries.

Each digital platform has its own social media channels on the most popular platforms, including Facebook, Instagram, YouTube, and Twitter. A significant portion of the Companys total engagement and pageviews are generated through social media. The platforms are also accessible via mobile applications for the Apple and Android ecosystems.

The quint is not only one of the innovators of digital news media in India, but also the only listed player. Due to its superior journalism, content innovations, and ability to engage millennials and seniors, the Company has gained a competitive advantage across the media and entertainment industry. Moreover, the Company has won about 100 awards across various categories in the past seven years and is trusted by over 300 brands for business partnerships.

Quintype Technologies India Ltd., founded in 2016, has been one of the material subsidiary of Quint Digital Media Ltd. Quintype is headquartered in Bangalore, India, with a global clientele of marquee publishers across India, the USA, Europe, the Middle East, and Africa. The Quintype platform encompasses special features such as auto-scaling infrastructure, an integrated SaaS solution, foolproof security and backup, precise personalization, real-time analytics and reporting, and monetization and engagement. Quintype offers industry-leading digital publishing products that aid in content management, workflow management, audience engagement, user experience, front- end support, real-time analytics, API access, and multi-site support, thereby facilitating a seamless publishing experience.

In September 2022, Quintype has newly opened its Dubai office to further expand its footprints in the MENA (Middle East and North Africa) region. The presence of a local office in the Middle East would enable the firm to cater efficiently to newer clients and increase audience engagement across the region. Quintypes intelligently designed product suite provides better tools to grow and monetize readers effectively. In addition, it has a strong management team of more than 85 employees and is attractively positioned to realise maximum value by leveraging its strong financial profile and marquee customer base.

Indian Economy

India has maintained its position as the worlds fastest-growing major economy despite increasing global uncertainty and sluggish growth. Certain high-frequency indicators, such as steel production, cement production, cargo handled at major ports, production of commercial vehicles, railway freight traffic, non-oil imports, etc., have not only recorded higher annualised growth rates but have also been registering continuous sequential improvements, validating Indias sustainable growth momentum. The expansion has been supported by robust private consumption in the face of pent-up demand, a rapid recovery in contact-intensive service industries, and the governments continued emphasis on capital expenditures. However, persistently rising inflationary pressures and longer- term forecasts of higher interest rates may have a negative impact on the global economy and the economic trajectory of India. The National Statistical Office (NSO) projects that Indias GDP will grow by 7.0% in FY 2022-23, compared to 9.1% in FY 2021-22.

RBI SPF report as on 6th April, 2023

In order to control inflation, the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) ended the rate increase cycle in April 2023 and maintained the repo rate at 6.5%. Considering both global and domestic variables into account, headline inflation is expected to decline in FY 2023- 24. The RBI anticipates that consumer inflation will decline to 5.2% in FY 2023-24, and its SPF (Survey of Professional Forecasters) report forecasts that Indias real GDP will increase by 6% in FY 2023-24. Indias rising global profile is supported by a number of accomplishments, including the unique World Class Digital Public Infrastructure of Aadhaar, Co-Win, and UPI; unprecedented scale and a proactive role in frontier areas, including the achievement of climate-related goals and the National Hydrogen Mission. Three megatrends — global offshoring, digitalization, and the energy transition — are laying the groundwork for the nations robust economic development.

Budget for FY 2023-24 has delivered a well-targeted strategy that is anticipated to stimulate cross-sectoral growth through capital investment, infrastructure development, technological advancement, and sustainability. The 33% increase in capital expenditures to 10 lakh crore demonstrates the continued emphasis on infrastructure-led growth and the resulting multiplier effect. The Indian government has remained committed to its key priorities, which include the nationwide implementation of 5G, fiberization as part of the Bharatnet and NHAI projects, and encouraging participation in the PLI programmes to promote indigenous design and manufacturing across various industries. According to PWC, the implementation of 5G technology will boost the global GDP by US$1.3 trillion by 2030, and the Indian economy by approximately US$ 42 billion. The accelerated digital transformation and increased demand for high-speed data, as well as the incorporation of cutting-edge technologies such as artificial intelligence, the IoT (internet of Things), and machine learning, have driven these development schemes.

Industry Structure and Developments

Media and Entertainment (M&E) Industry

The Indian M&E business has been a driving force for the economy and is seeing rapid expansion across every segment. A rise in consumer demand, the expansion of the digital sector, and rising advertising revenues are all supporting the Indian M&E industry as it enters a robust development phase. According to the FICCI EY report titled "Windows of opportunity - Indias media & entertainment sector maximizing across segments", the Indian Media and Entertainment (M&E) sector grew by 20% YoY (year over year), reaching revenues of 2.1 trillion in 2022 as compared to 1.8 trillion in 2021. The M&E industry grew by 10% above its pre-pandemic levels in 2019.

Indian M&E Industry: size and projections

(in Rs billion)

	2019	2020	2021	2022	2023E	2025E	CAGR 2022- 2025
Television	787	685	720	709	727	796	3.9%
Digital media	308	326	439	571	671	862	14.7%
Print	296	190	227	250	262	279	3.7%
Filmed entertain- ment	191	72	93	172	194	228	9.8%
Online gaming	65	79	101	135	167	231	19.5%
Animation and VFX	95	53	83	107	133	190	21.1%
Live events	83	27	32	73	95	134	22.2%
Out of Home media	39	16	20	37	41	53	12.8%
Music	15	15	19	22	25	33	14.7%
Radio	31	14	16	21	22	26	7.5%
Total	1,910	1,476	1,750	2,098	2,339	2,832	10.5%
Growth		-23.2%	19.3%	19.9%	11.5%

Source: EY

Total subscription revenue, including television, digital, print, and film subscriptions revenues, increased by 79 billion from 632 billion in 2021 to 711 billion in 2022, representing a YoY increase of 12.5%. From 2021 to 2022, the television subscription revenues decreased from 407 billion to 392 billion. Digital, Print, and Film subscription revenues increased from 56, 76, and 92 billion in 2021, respectively, to 72 billion, 80 billion, and 168 billion in 2022. While the proportion of subscription revenue to total revenue decreased from 40% in 2019 to 34% in 2022. Due to sluggish theatrical revenues as a result of Bollywoods poor performance, ticket pricing regulations in certain states, a decline in absolute print circulation in metro areas and English periodicals, and a decline in pay TV households, overall subscription revenues were 8% below 2019 levels. Moreover, advertising revenues from digital media grew by 30.3%, from 383 billion in 2021 to 499 billion in 2022.

Digital media revenues

(In Rs Billion)

	2021	2022	2023E	2025E
Advertising	383	499	594	765
Subscription	56	72	77	97
Total	439	571	671	862

Source: EY FICCI report

In 2022, television remained the greatest segment of the M&E industry. The second largest segment, digital media, has grown considerably, reaching 571 billion and increasing its revenue contribution to the M&E market from 16% in 2019 to 27% in 2022. If data costs were also factored into its overall contribution, the digital segments share of the entire M&E industry would increase to 50%. Except for Television in 2022, all M&E segments reported significant growth in revenues over the previous year. In 2022, traditional media (television, print, film entertainment, out-of-home (OOH), music, and radio) contributed 58% of M&E sector sales, down from 71% in 2019.

News subscriptions generated revenues worth 1.2 billion in 2022, driven mainly by premium and exclusive content. In 2022, the online news audience expanded to 473 million unique mobile and desktop users of news sites, portals, and aggregators. Online news subscribers accounted for 55% of all internet users in 2022.

The M&E industry is expected to grow by 11.5% per annum in 2023, reaching 2.3 trillion in overall revenues and growing past its pre-pandemic levels of 1.9 trillion in 2019. The industry is then expected to increase by 21% per year to 2.8 trillion in total revenues in 2024. Between 2022 and 2025, the Indian M&E industry is anticipated to grow at a CAGR of 10.5% and contribute approximately 734 billion in revenues to the M&E industry. The growth will be driven predominantly by digital, online gaming, and television, followed by animation and visual effects, live events, and films. The television segment would comprise 65% of the total industry growth, while animation & visual effects, live events, and films would comprise of 11%, 8%, and 8% respectively. Video remained the most profitable segment in 2022, and despite the return to normalcy following the pandemic, it has maintained an 11% increase in revenue share since 2019. As the countrys per capita income grows in the future, the proportion of experiential revenues is also anticipated to increase.

As affordability improves, the drive for subscription-based revenues is likely to undergo a structural shift. The data inputs upon which the subscription revenues are based will expand to the advantage of M&E and the broader ecosystem. As India strengthens its position across the world, the M&E industry has a unique opportunity to contribute to Indias expanding soft power on the national and international stage. The M&E industry will be able to take the next step if a fresh perspective on the transformation of traditional business models is implemented.

Recent Trends

M&E industry players are taking decisive action to achieve ambitious growth goals and position their companies for future success as the industry continues to undergo constant transformation. The content creation, distribution, advertising, and monetization industries are more variable, competitive, and uncertain than ever. Here are five media and entertainment industry trends to keep an eye on in the coming year.

Diversified Streaming Media packages leading to better customer retention

Media companies operating in the direct-to-consumer (DTC) market intend to provide consumers with a bundle of streaming content and other services. By boosting subscriber lifetime value, media businesses may improve the effectiveness of their marketing and technological investments. Consumers receive access to a wider range of content in a single offering in addition to paying a lower wholesale package price than when purchasing channels separately. To further strengthen the direct-to-consumer (DTC) customer relationship and increase switching costs, media companies are seeking to attach additional services to their streaming packages. The media companies would replicate the success of large, digital- native platforms that have linked the video subscription to e-commerce, music, fitness, and other lifestyle offerings. Media leaders will also attempt to leverage their or their partners asset portfolios to foster long-lasting streaming relationships.

Increasing M&A activity and consolidation trends across markets

In the coming year, asset sales and spin-merger transactions may be more prevalent than company-wide transactions. Strategic mergers will simplify the streaming marketplace for consumers, generate cost savings that can be used to finance investments in better content, marketing, and technology, and rationalise the current industry landscape, which is dominated by global giants. Many industry participants would explore strategic commercial transactions and partnerships that are more complicated than a straightforward acquisition or sale.

Regional sports media are switching channels

Regional sports network (RSN) revenues are under significant pressure as subscriber counts decline due to customer attrition and loss of carriage from pay TV operators, who choose to discontinue the networks rather than pass on expensive affiliate fees to customers. The combination of reduced revenues and a high fixed-cost expense base, including team rights payments, is causing a structural decline in cash flow and raising existential concerns about the RSN business models viability. To mitigate the risk of interruption, teams and leagues are researching transactions to acquire RSNs and preparing the media companies for the transition to DTC streaming. For direct-to-customer pricing to be efficient and successful, many professional teams would need to participate in a streaming venture together to implement a year-round programming schedule.

In-theatre cinemas seeking additional traction

Box office revenue has been down more than 30% from pre- pandemic levels. The overall number of films produced in 2022 is substantially below the 10-year average preceding 2020, giving customers fewer alternatives when considering a trip to the theatre. Despite the visible momentum established for this years big blockbusters in theatres, studios and exhibitors are resetting the movie business. Theatre owners will need to rebalance their business and financial models to accommodate less film product coming through their multiplexes while remaining agile enough to capitalise on the profits from super blockbusters. Theatre owners are employing tactical measures such as loyalty programmes and other initiatives to keep customers engaged.

Moving into the Metaverse gradually and methodically

While the optimism surrounding NFTs (Non-Fungible Tokens) and aspirations of a metaverse-driven future may have slowed down in late 2022 as macroeconomic problems took center stage, media businesses are still preparing for the new age of interaction. Strategic planning, research and development, market research, and technology are all areas of investment, with the objective of preserving flexibility as the metaverse becomes visible. Media companies will continue to make deliberate efforts, identifying dedicated metaverse experts and providing them with technical, financial, legal, and creative expertise to frame out scenarios and drive innovation. Capital investment in metaverse-related efforts will remain modest in the short term but not insignificant. The sector is committed to staying proactive and involved with this new potential of the immersive metaverse.

As 2023 promises to be another year of industry transformation and disruption, media and entertainment players are expected to take decisive action to accomplish ambitious development goals and position their businesses for future success.

Opportunities and Threats

Increased customer expectations, a rapidly growing list of new enabling technologies, a volatile macroeconomic environment, and fierce competition are all indicators that the media and entertainment (M&E) industry is undergoing significant change. Major opportunities in the M&E industry have been mentioned as follows:

Threats

Macroeconomic risk is a considerable threat to the industry, as the economy and the M&E industrys growth go hand in hand. The political and economic atmosphere has been more volatile recently than ever, posing a danger to the M&E business.

Underpenetrated technological advancements in the M&E industry hinder its growth process.

Every media company competes for a larger audience share. Ratings or circulation statistics are a vulnerability for specific sectors at any given time.

In certain traditional media sectors, cost structure is an issue when a shift in consumer media tastes has resulted in a strong brand but also a large workforce and a declining client base.

Source: EY Global

Financial Performance

(in Rs crores)

Particulars	FY 2022-23	FY 2021-22	% Change
Revenue from Operations	41.0	35.6	15%
Other Income	3.7	1.6	129%
Total Income	44.7	37.2	16.91%
Employee benefit ex- penses	11.9	9.5	26%
Finance cost	2.3	1.1	113%
Depreciation and amorti- zation expense	9.4	7.3	28%
Other expenses	12.3	12.3	0%
Total Expenses	35.9	30.2	19%
Profit before tax and exceptional items	8.9	7.0	27%
Exceptional Items	0.0	0.5	-100%
Profit before tax	8.9	6.5	36%
Tax expenses
(a) Current tax	2.9	2.0	45%
(b) Deferred tax	-0.6	-0.3	73%
(c) Tax on earlier years	0.2	0.0	0%
Profit after tax	6.4	4.8	32%

Since the completion of the acquisition of the digital business of Quintillion Media Private Limited on July 1, 2020, the Companys financials have undergone a substantial change. In FY 2022-23, the revenue from operations increased by 15% compared to FY 2021-22. Moreover, as of November 14, 2022, the Company has considered acquiring a 47.92% stake in Spunklane Media Private Limited (SMP). SMP operates a digital news portal named "www. thenewsminute.com" and focuses on reporting and writing about issues in India, particularly in the five southern states of Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, and Kerala.

In FY 2022-23, total expenses increased by 19%. Profit before taxes increased by 36% percent to 88,501 thousand. Therefore, net profits after taxes increased by 32% from 48,268 thousand in FY 2021-22 to 63,762 Thousand in FY 2022-23.

Pursuant to the ESOP option exercised by the employee of the Company under QDML ESOP Plan 2020 the Company approved the allotment of 1,500 Equity Shares having a face value of 10 on July 6, 2022, and allotment of 1,500 Equity Shares having a face value of 10 on October 17, 2022. On January 31, 2023, the Company has approved a rights issue for the allotment of 2,50,00,000 fully paid-up equity shares of the Company having face value of 10 at a premium of 40 each, i.e., at a total price of 50 per share.

The Company has granted 940,000 stock options to eligible employees on June 13, 2022, and 1,10,000 stock options to eligible employees on March 21, 2023, as determined by the Nomination and Remuneration Committee.

The Company entered into a five-year Franchisee Agreement and launched its international platform, Quint World, during the year. Adanis AMG Media Networks has acquired a 49% stake in Quintillion Business Media Pvt Ltd, a subsidiary of Quint Digital Media Limited, for approximately 48 crore. The proposed transaction with the Adani Group pertains exclusively to QBM, a digital business news platform, and not to other digital media/ media tech properties owned/invested in by Quint Digital Media Limited, such as The Quint, Quintype Technologies, thenewsminute, and Youthkiawaaz. The proposed acquisitions are strategic measures for expansion and diversification into digital media segments, as well as access to technology that will assist with the creation, distribution, and monetization of content.

Quintypes award-winning multilingual, digital-first publishing solutions enable content creators to consistently provide readers with superior experiences. During FY 2022-23, Quintype had 800 million page views with 130 publishers on board, published 500,000 unique stories in approximately 150 languages, and had an average subscription period of three years. The media-tech operations of Quintype continued to experience exponential growth, with its revenues reaching 22.49 crore in FY 2022-23, growing by 150% YoY from 9.0 crore in FY 2021-22.

Product-wise OR Segment-wise Performance

The top eight industries accounted for 73.79% of the total revenues generated by the digital business, with Telecommunication & Mobile 4.14%, Infrastructure 6.70% and Entertainment 4.66% contributing the most in decreasing order. In terms of revenue models, Programmatic & Partner revenues accounted for 35.90% of the total share during the reporting fiscal year. Additionally, the Companys three platforms have dispersed viewership reach and engagement performance across multiple mediums, including its own websites, applications, and all social media channels, such as YouTube, Instagram, Facebook, etc. During the review period, the digital properties had nearly 23 million subscribers/followers across all platforms. During the review period, the total page views, video views, unique viewers, and impressions for these channels were 1.3 billion, 9.8 million, 1.4 billion, and 8 billion, respectively.

Key Financial Ratios

The details of changes in the key financial ratios as compared to the previous year are stated below:

Ratio	Ref Note	Unit	FY 2021- 22	FY 2022-23	% Change
Inventory Turnover	1	Days	-	-	-
Debtors Turnover	2	Days	3.75	4.08	8.88%
Current Ratio	3	Times	1.17	2.81	139.93%
Interest Coverage Ratio	4	Times	6.94	4.81	(30.67%)
Debt: Equity	5	Times	0.54	0.29	(46.93%)
EBITDA Margin	6	%	41.92	50.06	19.42%
Operating Profit margin	7	%	21.33	27.22	27.65%
Net Profit Margin	8	%	13.58	15.53%	14.42%
Return on Net worth	9	%	14.37	6.26	(56.40%)

Inventory Turnover: There is no inventory turnover ratio since the Company has no inventory.

Debtors Turnover Ratio: The Companys trade receivables grew more quickly than its operating income. The Companys business composition has changed as a consequence of the acquisition of the digital content Company, resulting in this difference. In addition to market liquidity issues, the COVID-19 pandemic increased the amount of pressure placed on receivables.

Current ratio: As a result of the preferential allotment of compulsorily convertible preference shares (CCPS) and warrants, the Company has more cash and current assets without a corresponding increase in current liabilities. This has resulted in a significant increase in the current ratio over the past year. However, since the purchase price of the digital content business was paid in cash, the Companys debt level increased. Because of this, current liabilities have increased, resulting in a decline in the current ratio. ‘Due to reduction in deferred payment liability on account of payment made during the year for the acquisitions made in previous year and due to increase in current investments on account of purchase of mutual funds during the year.

Interest Coverage Ratio: Due to increased profitability, the Interest Coverage Ratio grew from a deficit to a surplus.

Debt-to-Equity Ratio: The increase in debt to finance the acquisition has had a primarily negative effect on the Debt-to- Equity Ratio. Due to increase in equity as a result of right issue.

EBITDA Margin: Due to significantly higher operational revenues, the EBITDA Margin has increased.

Operating Profit Margin: The Companys operating profit was considerably higher than the prior year, as acquired digital platforms generated significantly higher operating revenues and profitability in FY 2022-23.

Net Profit Margin: The Net Profit has increased considerably over the course of the year due to the increased revenue generated by the Companys acquired digital platforms.

Business Outlook

The Company has been aiming for and working towards increased growth, both organically and inorganically. Recent acquisitions indicate that the Company is in full expansion and scaling-up mode, not just for today but also for the future. In addition, Quintype Technologies India Limited intends to enter into a master franchise agreement for the Middle East Territory in the near future. The Companys strategy is direct, aggressive, innovative, trend-setting, and disruptive to the current ecosystem. From the standpoint of the long-term viability of their business, the Companys potential as the worlds premier digital-only news broadcasting organisation is extremely promising. The Company is an important aspect of the digital/ mobile/fast-moving digital content industry, which was one of only two segments of the media and entertainment industry to thrive in 2020, a year marked by unprecedented difficulties.

Risk and Mitigation

External Risks

Macro Risks

The rate of growth in the countrys Gross Domestic Product and the phases of the business cycle are the primary macro- economic risks that have a significant impact on the Companys performance. These macroeconomic factors have a relatively substantial impact on the Companys advertising revenue, relative to other macro factors. Other factors, including unemployment and inflation rates, as well as the level of government debt, have a more indirect impact. Non-economic macro risks pertain to the stability of political and regulatory administrations, which may generate an unfavourable operating environment for the Company and have an effect on its business operations.

Security Risks

Natural disasters, terrorist attacks, theft, arson, and attacks during civil unrest all pose a risk to the Companys property and employees. These large-scale societal incidents have an indirect effect on the Companys business by creating an unfavourable business climate, which leads to a decline in spending.

Peer Risks

The digital news media industry has minimal barriers to entry and already has a significant number of participants, including both traditional news media and digital-only companies. The impact of spending on content and digital marketing on readership and engagement can be substantial. This may encourage new competitors to enter the market with greenfield or brownfield investments. The greater the competition, the more fragmented the viewership and, consequently, the advertising spend.

Internal Risks

Legal Risks

In the normal course of business, noncompliance with existing rules and regulations may result in litigation or penalties that have a negative impact on the Companys financial performance and reputation. Due to the fact that the Companys operations involve the creation of news content, it may be subject to legal action from parties harmed by such reporting.

Human Resource Risks

The expertise of the Companys journalists, production technicians, digital marketers, and other team members has a substantial effect on the quality, reach and engagement of its content creation. To avoid disruptions in the development and dissemination of high-quality information, acquiring and retaining talent is a key challenge.

Economic Risks

Financial misconduct or misappropriation of funds by an employee or a supplier may have an effect on the financial performance of the Company. Any significant misalignment between the timing of costs or investments and collections may necessitate the use of short-term loans and the accrual of interest fees, in addition to provisions or write-offs for uncollected income.

Technical Risks

As a Digital News Media organisation, the Companys content generation and broadcast processes rely heavily on IT technologies. Any large-scale and prolonged disruption of these systems could have a negative effect on the Company. This includes threats posed by hackers, server overflow resulting from excessive traffic or DDOS attacks, and other systemic vulnerabilities.

The following are high-level risk management and adverse event mitigation strategies:

Hedging risks: Diversification of revenue streams, commodities, suppliers, etc., and constructing redundancy for people/systems/ other resources create a natural hedge against disruptions.

Prevention on malpractices: To ensure all compliance and prevent fraud and theft.

Invest in insurance: Invest in appropriate insurance protection against legal and security threats.

Investments in People, Systems, and Marketing: The Company believes in investing in the best people, systems, and marketing campaigns to ensure that content creation with the required level of quality and innovation continues uninterrupted and can compete successfully for viewer attention on the market.

Resilient Organisation Culture: The management structure, procedures, and people necessary to establish an organisation culture that attracts and retains top performers and enables them to perform at their highest level.

Investments in Technology: Ensure that the Companys systems and platforms are accessible 24 hours a day, seven days a week, by preventing disruptions.

Internal Control

A strong national presence and significant associate strength necessitate a robust internal control structure for the company. These are intended to provide reasonable assurance regarding the recording and communication of reliable financial and operational data, compliance with applicable laws, protection of assets from unauthorised use or loss, execution of transactions with proper authorization, and adherence to corporate policies. The Company has implemented the necessary internal control systems for its entire business segments. The control systems have been designed in accordance with the best practices of the industry to ensure the protection of its resources, minimise risks, maintain the accuracy of reporting, and promote strict compliance with established procedures, policies, and regulations without sacrificing the organization ability to achieve its business objectives.

Through a well-defined procedure involving the Audit Committee and top management, the controls are monitored, reviewed, and appropriately changed. The nature, frequency, and scope of these internal audits to assess the controls and processes are commensurate with the size and nature of the Companys business. The audit function provides reasonable assurance that operations are effective and efficient, that assets are protected, that financial records and reports are accurate, and that applicable laws and regulations are adhered to.

Human Resource Development

Human resources are crucial to the long-term development of the Company as a news provider with a strong technical and creative business model. The company advocates for a balanced, fair, and equitable human resource management system and fosters a positive and welcoming environment. The Company takes pride in the knowledge and experience of the employees it has hired throughout the years. It has built an effective digital news media platform on the backs of its own people. The Companys leadership has fostered, with the assistance of the Human Resource function, a culture of performance, collaboration, and transparency that promotes individual growth and teamwork. This has allowed the Company to not only retain its key personnel, but also recruit the best talent in its industry. The average age of its reporting, editorial, social media, and sales professionals is only 30.5, which is consistent with its media properties target audience. In addition to being a champion of gender diversity, the Company employs 42.65% women out of a total of 150 staff members as on March 31, 2023.

Cautionary statement

This report contains statements that may be "forward looking" including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to the Companys future business developments and economic performance. While these forward- looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macroeconomic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance. The Company undertakes no obligation to publicly revise any forward- looking statements to reflect future / likely events or circumstances.