STAKEHOLDERS EMPOWERMENT SERVICES INTERNET LTD. www.lycos.com SECTOR: IT - SOFTWARE REPORTING DATE: 29TH NOVEMBER, 2017

Lycos Internet Ltd. NSE Code - LYCOS TABLE 1 - MARKET DATA (STANDALONE) (AS ON 24TH NOVEMBER, 2017) Sector - IT - Software NSE Market Price (`) 5.80 NSE Market Cap. (₹ Cr.) 277.65 Face Value (`) 2.00 Equity (` Cr.) 95.25 Business Group - NA 52 week High/Low (₹) 10.60/5.40 Net worth (₹ Cr.)* 585.16 Year of Incorporation - 1999 TTM P/E (TTM) N.A. Traded Volume (Shares) 17,03,920 TTM P/BV 0.47 Traded Volume (lacs) 98.83 Registered Office - Source - Capitaline, TTM - Trailing Twelve Months, N.A. - Not Applicable, * As on 30th Sept 2017 Floor: 5, Holiday Inn Express & Suites, COMPANY BACKGROUND Road No: 2, Nanakramguda, Lycos Internet Limited (LYCOS) is an India-based service company. The Company is Gachibowli, Hyderabad, engaged in providing digital marketing services, and development of computer Telangana - 500 032 software and services. The Company operates through two segments: Digital Marketing Segment and Software Development Segment. The Company is also a Company Website: global information technology implementation and outsourcing services provider. It www.lycos.com offers digital marketing solutions to businesses, agencies and online publishers around the world. It provides enterprise solution offerings and specializes in enterprise resource planning (ERP) solutions, Microsoft and open source systems development.

LYCOS Media is a network of community and social sites. Its products and services include tools for blogging, Web publishing and hosting, online games, e-mail and search. The LYCOS Network of sites and services include Lycos.com, , Angelfire, HotBot, , WhoWhere and LYCOS Mail. LYCOS Life is the Company's consumer products division.

Revenue and Profit Performance

Quarterly revenue and Profit (₹ CRORE) 150 114.72 117.91 117.89 100 The revenue of the Company decreased from ₹117.89 crores 50 to ₹114.72 crores from quarter ending Sep’16 to quarter -1.23 -0.23 -0.23 ending Sep’17. The Company made a loss of ₹1.23 crores in 0 quarter ending Sep’17 vis-a-vis making a loss of ₹0.23 crores -50 in quarter ending Sep’16. Sep'17 Mar'17 Sep'16

Revenue Profit

Source: Moneycontrol Performance vis-à-vis Market 1.50

1.30 TABLE 2- Returns

1.10 1-m 3-m 6-m 12-m Lycos Internet Ltd -3.33% 0.86% -17.14% -35.20% 0.90 Nifty 0.44% 5.71% 8.17% 28.48% 0.70 Nifty IT 3.89% 7.08% 6.98% 13.94% 0.50 Source - Capitaline/NSE Nov 16 Jan 17 Mar 17 May 17 Jul 17 Sep 17 Nov 17 Lycos Internet Ltd NIFTY NIFTY IT

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STAKEHOLDERS EMPOWERMENT SERVICES LYCOS INTERNET LTD. www.lycos.com SECTOR: IT - SOFTWARE REPORTING DATE: 29TH NOVEMBER, 2017 TABLE 3 - FINANCIALS % Change (₹ Cr.) Sep’17 Mar’17 Sep’16 Sep ’17 vs Mar’17 Mar’17 vs Sep’16 Net Worth 585.16 585.26 591.31 -0.02% -1.02% Current Assets 363.69 351.04 354.82 3.60% -1.07% Non-Current Assets 518.29 518.47 518.35 -0.03% 0.02% Total Assets 881.98 869.51 873.18 1.43% -0.42% Investments 508.98 508.98 509.03 0.00% -0.01% Finance Cost 3.39 3.47 4.09 -2.31% -15.16% Long Term Liabilities 90.48 89.72 92.37 0.85% -2.87% Current Liabilities 206.34 194.52 189.50 6.08% 2.65% Turnover 114.72 117.91 117.89 -2.71% 0.02% Profit After Tax (PAT) -1.23 -0.23 -0.23 N.A. N.A. EPS (₹) -0.03 - - - - Source - Money Contro/Stock exchange filing

AUDIT QUALIFICATIONS

Audit Qualifications in last 3 years: The Statutory Auditor have not raised any qualification for the last 3 financial years viz. FY 2016-17, FY 2015-16 & FY 2014-15.

Response Comment Frequency of Qualifications - Have the auditors made any adverse No - remark in last 3 years? Are the material accounts audited by the Yes The proportion of total assets and turnover as per the consolidated Principal Auditors? accounts of foreign subsidiaries / Joint Ventures, which have not been audited by Statutory Auditors represent significant amount of Do the financial statements include No the total assets and turnover. However, the Auditor has reviewed material unaudited financial statements? the conversions made by the Management.

TABLE 4: BOARD PROFILE (AS PER ANNUAL REPORT - FY 2016-17) Regulatory Norms Company % of Independent Directors on the Board 50% 50% % of Promoter Directors on the Board - 33.33% Number of Women Directors on the Board At least 1 1 Classification of Chairman of the Board - Executive Promoter Director Is the post of Chairman and MD/CEO held by the same person? - Yes Average attendance of Directors in the Board meetings (%) - 61.22%

Composition of Board: As per Regulation 17(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 "Listing Regulations, 2015", the Company should have at least 50% Independent Directors as the Chairman of the Board is a Promoter Executive Director. The Company has 50% of Independent Directors and hence, it meets the regulatory requirements. Board Diversity: The Company has 6 directors out of which 5 are male and 1 is female.

Holding of position of MD/ CEO & Chairman by same person: The Company has appointed Mr. Suresh Kumar Reddy as the Chairman and Managing Director of the Company. Appointment of a single person as the Chairman and Managing Director of the Company is not a good governance practice as this may lead to concentration of power in a single person.

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STAKEHOLDERS EMPOWERMENT SERVICES LYCOS INTERNET LTD. www.lycos.com SECTOR: IT - SOFTWARE REPORTING DATE: 29TH NOVEMBER, 2017

TABLE 5 - FINANCIAL RATIOS % Change Ratios Sep’17 Mar’17 Sep’16 Sep ’17 vs Mar’17 vs Mar’17 Sep’16

Inventory Turnover N.A. N.A. N.A. - -

Debtors Turnover 0.51 0.54 0.50 -5.74% 8.20%

Fixed asset Turnover 0.22 0.23 0.23 -2.67% -0.01% Ratios Turnover Current Asset Turnover 0.32 0.34 0.33 -6.09% 1.09%

Operating Profit Margin 2.42% 4.65% 4.76% -47.86% -2.33% Net Profit Margin -1.07% -0.20% -0.20% N.A. N.A. Return on Assets (ROA) N.A. N.A. N.A. N.A. N.A. Return on Equity (ROE) N.A. N.A. N.A. N.A. N.A.

ReturnRatios Return on Capital Employed (ROCE) N.A. N.A. N.A. N.A. N.A.

Current Ratio 1.76 1.80 1.87 -2.33% -3.62%

Quick Ratio 1.76 1.80 1.87 -2.33% -3.62%

Cash Ratio 0.67 0.68 0.63 -1.74% 8.97%

Ratios Liquidity Working Capital Turnover ratio N.A. N.A. N.A. N.A. N.A.

Debt to equity ratio 0.27 0.26 0.26 3.28% -0.52%

Ratios Interest Coverage Ratio 0.82 1.58 1.37 -48.07% 15.14%

Solvency

Market Cap / Sales 2.49 3.07 3.23 -18.86% -5.02% Market Cap/ Net Worth 0.49 0.62 0.64 -21.04% -4.02% Market Cap/PAT N.A. N.A. N.A. N.A. N.A.

Market Cap/EBITDA 102.79 66.05 67.91 55.62% -2.75% TradingRatios Source - Money Control/Stock exchange filing

TABLE 6 - TRADING VOLUME % Change Particulars Sep’17 Mar’17 Sep’16 Sep ’17 vs Mar’17 Mar’17 vs Sep’16

Trading Volume (shares) (avg. of 1 qtr) 9,57,862 12,10,249 21,27,663 -20.85% -43.12% Trading Volume (shares) (high in 1 qtr) 99,19,665 85,54,171 95,26,597 15.96% -10.21% Trading Volume (shares) (low in 1 qtr) 1,82,681 1,76,615 2,67,253 3.43% -33.91% Ratio - High/low trading volume 54.30 48.43 35.65 12.11% 35.87% Ratio - High/average trading volume 10.36 7.07 4.48 46.52% 57.86% Source - Capitaline

TABLE 7 (A): OWNERSHIP & MANAGEMENT RISKS Sep-17 Mar-17 Sep-16 Comments

Promoter shareholding 39.11 39.11 39.10 • No new equity shares were issued during the st th period from 1 Oct, 2016 to 30 Sep, 2017. Public - Institutional • There was no major change in the promoter 20.21 20.43 20.49 shareholding shareholding during the said period. • No major change was observed in the Public - Others shareholding 40.68 40.46 40.41

shareholding pattern during the said period. Shareholding(%) Non-Promoter Non-Public • The promoters have pledged or encumbered 0.00 0.00 0.00 Shareholding 43.28% of their shareholding. Source - NSE

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STAKEHOLDERS EMPOWERMENT SERVICES LYCOS INTERNET LTD. www.lycos.com SECTOR: IT - SOFTWARE REPORTING DATE: 29TH NOVEMBER, 2017

MAJOR SHAREHOLDERS (AS ON 30TH SEPTEMBER 2017) S. No. Promoters Shareholding S. No. Public Shareholders Shareholding 1 M. Suresh Kumar Reddy 15.77% 1 Everest Capital (M) Ltd. 12.91% 2 Vijay Kumar Kancharla 13.03% 2 Oak India Investments 7.01% 3 Redmond Investments Ltd. 5.20% 3 Uno Metals Ltd. 3.56% 4 S. V. Rajyalaxmi Reddy 1.37% 4 Akg Finvest Ltd. 2.36% 5 Geetha Kancharla 1.37% 5 Priya Prakash 2.12% Source - NSE

TABLE 7 (B): OWNERSHIP & MANAGEMENT RISKS The Promoters of the Company bought and sold shares in the secondary market in FY Market Activity of Promoters 2016-17. (Source: Form MGT – 9 Annual Report 2016 -17, page no. - 24) Preferential issue to promoters No preferential issue of shares was made to the promoters in FY 2016-17. Preferential issue to others No preferential issue of shares was made to other shareholders during FY 2016-17. GDRs issued by the Company The Company did not issue any GDRs during FY 2016-17. Issue of ESOPs/Issue of shares The Company did not issue any shares to the employees under its ESOP Scheme during FY other than Preferential allotment 2016-17. Source - Annual Report FY 2016-17

TABLE 8: PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY Sr. No. Name and Description of main products / services % to Total turnover of the Company 1 Software Services and Digital Marketing 100% Source - Annual Report FY 2016-17

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STAKEHOLDERS EMPOWERMENT SERVICES LYCOS INTERNET LTD. www.lycos.com SECTOR: IT - SOFTWARE REPORTING DATE: 29TH NOVEMBER, 2017 Glossary

Equity: The equity shares capital of the Company

Net Worth: The amount by which the Assets exceeds the liabilities excluding shareholders’ funds of the Company Turnover: The revenue earned from the operations of the Company

EPS: Earning Per Share is net profit earned by the Company per share Profit After Tax 퐸푃푆 = Number of outstanding shares P/E ratio: It is the ratio of the Company’s share price to earnings per share of the Company Price of each share 푃/퐸 푟푎푡𝑖표 = Earnings per share Current Assets: Cash and other assets that are expected to be converted to cash in one year

Fixed Assets: assets which are purchased for long-term use and are not likely to be converted quickly into cash, such as land, buildings, and equipment

Total Assets: Current Assets + Fixed Assets

Investments: An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the future.

Finance Cost: The Financing Cost (FC), also known as the Cost of Finances (COF), is the cost and interest and other charges incurred during the year in relation to borrowed money.

Long Term Liabilities: Long-term liabilities are liabilities with a maturity period of over one year.

Current Liabilities: A company's debts or obligations that are due within one year.

Inventory Turnover ratio: Inventory Turnover is a ratio showing how many times a company's inventory is sold and replaced over a period. Sales Turnover 퐼푛푣푒푛푡표푟푦 푇푢푟푛표푣푒푟 푟푎푡𝑖표 = Inventory Debtors Turnover: Accounts receivable turnover is an efficiency ratio or activity ratio that measures how many times a business can turn its accounts receivable into cash during a period Sales Turnover 퐷푒푏푡표푟푠 푇푢푟푛표푣푒푟 푟푎푡𝑖표 = Accounts recievables Fixed Asset Turnover: The fixed-asset turnover ratio is a financial ratio of net sales to fixed assets Sales Turnover 퐹𝑖푥푒푑 퐴푠푠푒푡 푇푢푟푛표푣푒푟 푟푎푡𝑖표 = Fixed Assets Current Asset Turnover: The current-asset turnover ratio is a financial ratio of net sales to fixed assets Sales Turnover 퐶푢푟푟푒푛푡 퐴푠푠푒푡 푇푢푟푛표푣푒푟 푟푎푡𝑖표 = Current Assets Operating Profit Margin: Operating margin is a measurement of what proportion of a Company’s revenue is left over after paying for variable costs of production such as wages, raw materials etc. It can be calculated by dividing a Company’s operating income (also known as “operating profit”) during a given period by its sales during the same period. Operating profit 푂푝푒푟푎푡𝑖푛푔 푃푟표푓𝑖푡 푀푎푟푔𝑖푛 = Sales Turnover Net Profit Margin: Net profit margin is the percentage of revenue left after all expenses have been deducted from sales Net profit 푁푒푡 푃푟표푓𝑖푡 푀푎푟푔𝑖푛 = Sales Turnover

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STAKEHOLDERS EMPOWERMENT SERVICES LYCOS INTERNET LTD. www.lycos.com SECTOR: IT - SOFTWARE REPORTING DATE: 29TH NOVEMBER, 2017 Return on Assets: ROA tells you what earnings were generated from invested capital (assets) Net profit 푅푒푡푢푟푛 표푛 퐴푠푠푒푡푠 = Total Assets Return on equity/net worth: return on equity (ROE) is the amount of net income returned as a percentage of shareholders’ equity. Net profit 푅푒푡푢푟푛 표푛 퐸푞푢𝑖푡푦 = Net worth Return on Capital Employed: Return on capital employed (ROCE) is a financial ratio that measures a company's profitability and the efficiency with which its capital is employed. Net profit 푅푒푡푢푟푛 표푛 퐶푎푝𝑖푡푎푙 퐸푚푝푙표푦푒푑 = Total Debt + Equity share capital Current ratio: The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months. It compares a firm's current assets to its current liabilities. Current Assets 퐶푢푟푟푒푛푡 푟푎푡𝑖표 = Current Liabilities Quick ratio: The quick ratio is a measure of how well a Company can meet its short term financial liabilities. Current Assets − Inventories 푄푢𝑖푐푘 푟푎푡𝑖표 = Current Liabilities Cash ratio: The ratio of the liquid assets of a Company to its current liabilities. Current Assets − Inventories − Account Recievables 푄푢𝑖푐푘 푟푎푡𝑖표 = Current Liabilities Working Capital Turnover ratio: The working capital turnover ratio is also referred to as net sales to working capital. It indicates a Company's effectiveness in using its working capital. 푆푎푙푒푠 푇푢푟푛표푣푒푟 푊표푟푘𝑖푛푔 퐶푎푝𝑖푡푎푙 푇푢푟푛표푣푒푟 푟푎푡𝑖표 = Current Assets − Current Liabilities Debt to Equity ratio: The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. 푆ℎ표푟푡 푇푒푟푚 퐷푒푏푡 + 퐿표푛푔 푇푒푟푚 퐷푒푏푡 퐷푒푏푡 푡표 퐸푞푢𝑖푡푦 푟푎푡𝑖표 = 푁푒푡 푊표푟푡ℎ Interest Coverage ratio: The Interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a Company can pay interest on outstanding debt. 퐸푎푟푛𝑖푛푔 퐵푒푓표푟푒 퐼푛푡푒푟푒푠푡 푎푛푑 푇푎푥 퐼푛푡푒푟푒푠푡 퐶표푣푒푟푎푔푒 푅푎푡𝑖표 = 퐹𝑖푛푎푛푐푒 퐶표푠푡 Market Cap/Sales ratio: Market Cap/sales ratio, Price–sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is calculated by dividing the company's market cap by the revenue in the most recent year; or, equivalently, divide the per- share stock price by the per-share revenue. 푀푎푟푘푒푡 퐶푎푝 푀푎푟푘푒푡 퐶푎푝/푆푎푙푒푠 푟푎푡𝑖표 = 푆푎푙푒푠 푇푢푟푛표푣푒푟 Market Cap/ Net Worth ratio: It is a valuation ratio calculated by dividing Company’s market cap to net worth. 푀푎푟푘푒푡 퐶푎푝 푀푎푟푘푒푡 퐶푎푝/푁푒푡푤표푟푡ℎ 푟푎푡𝑖표 = 푁푒푡푤표푟푡ℎ Market Cap/ PAT ratio: It is a valuation ratio calculated by dividing Company’s market cap to net profit. 푀푎푟푘푒푡 퐶푎푝 푀푎푟푘푒푡 퐶푎푝/푃퐴푇 푟푎푡𝑖표 = 푛푒푡 푝푟표푓𝑖푡 Market Cap/ EBITDA ratio: It is a valuation ratio calculated by dividing Company’s market cap to EBITDA.

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STAKEHOLDERS EMPOWERMENT SERVICES LYCOS INTERNET LTD. www.lycos.com SECTOR: IT - SOFTWARE REPORTING DATE: 29TH NOVEMBER, 2017 푀푎푟푘푒푡 퐶푎푝 푀푎푟푘푒푡 퐶푎푝/퐸퐵퐼푇퐷퐴 푟푎푡𝑖표 = 퐸퐵퐼푇퐷퐴 Trading Volume (shares) (avg. of 1 year): Average number of shares/day traded in 1 year

Trading volume (shares) (high in 1 year): Highest number of shares/day traded in 1 year

Trading volume (shares) (minimum in 1 year): Lowest number of shares traded on any one day in 1 year

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STAKEHOLDERS EMPOWERMENT SERVICES LYCOS INTERNET LTD. www.lycos.com SECTOR: IT - SOFTWARE REPORTING DATE: 29TH NOVEMBER, 2017 DISCLAIMER

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