MIRA INFORM REPORT

Report Date :

24^th June, 2006

IDENTIFICATION DETAILS

Name :	SAHARA ONE MEDIA & ENTERTAINMENT LIMITED
Formerly Known As :	SAHARA INDIA MASS COMMUNICATION LIMITED
Registered Office :	Sahara India Point CTS 40-44, S V Road Goregaon (West), Mumbai - 400104, Maharashtra
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	06.08.1981
Com. Reg. No.:	11-24947
CIN No.: [Company Identification No.]	U67120MH1981PLC024947
TAN No.: [Tax Deduction & Collection Account No.]	MUMS37736G
PAN No.: [Permanent Account No.]	AAACP3047R
Legal Form :	A Public Limited Liability Company. The company’s shares are listed on the stock exchange.
Line of Business :	The company is engaged in entertainment industry.

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 4000000
Status :	Satisfactory
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is a part of Sahara Group controlled and managed by Mr. Subralo Roy well connected with politicians. It is said that Sahara is funded by some well – known politicians of Uttar Pradesh. Although the Sahara Group is not faring well, subject has reported satisfactory results. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :

Sahara India Point CTS 40-44, S V Road Goregaon (West), Mumbai - 400104, Maharashtra

DIRECTORS

Name :	Subrata Roy Sahara
Designation :	Chairman
Name :	Swapna Roy
Designation :	Director
Name :	Amar Singh
Designation :	Director
Name :	Jaya Bachchan
Designation :	Director
Name :	O P Srivastava
Designation :	Director
Name :	J B Roy
Designation :	Director
Name :	Mahesh Prasad
Designation :	Director
Name :	V B Chandra
Designation :	Whole-time Director
Name :	Bimal Kishore Nanda
Designation :	Company Secretary

BUSINESS DETAILS

Line of Business :

The company is engaged in entertainment industry.

GENERAL INFORMATION

Employees :	About 300
Bankers :	Not Available

Banking Relations :	Unknown
Auditors :	D S Shukla and Company Chartered Accountants

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
35000000	Equity Shares	Rs. 10/- each	Rs. 350.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
17200000	Equity Shares	Rs. 10/- each	Rs. 172.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004	31.03.2003
SHAREHOLDERS FUNDS
1] Share Capital		172.000	172.000	172.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		885.100	820.100	753.800
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1057.100	992.100	925.800
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES
TOTAL		1057.100	992.100	925.800
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8.500	4.600	3.800
Capital work-in-progress		41.400	0.000	0.000
INVESTMENT		142.900	112.500	65.400
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	511.700	974.400	711.100
	Sundry Debtors	11.600	184.600	643.900
	Cash & Bank Balances	13.800	103.700	85.200
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1121.400	669.600	912.200
Total Current Assets		1658.500	1932.300	2352.400
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	754.900	1057.300	1494.500
	Provisions	40.200	1.100	2.700
Total Current Liabilities		795.100	1058.400	1497.200
Net Current Assets		863.400	873.900	855.200
MISCELLANEOUS EXPENSES		0.900	1.100	1.400
TOTAL		1057.100	992.100	925.800

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Sales Turnover [including other income]	1685.500	1468.200	1323.600
Profit/(Loss) Before Tax	110.900	87.700	21.400
Provision for Taxation	45.900	21.400	0.400
Profit/(Loss) After Tax	65.000	66.300	21.000
Total Expenditure	1573.500	1379.700	1247.400

QUARTERLY RESULTS

PARTICULARS	30.06.2005	30.09.2005	31.12.2005
Type	1st Qtr	2nd Qtr	3rd Qtr
Sales Turnover	581.600	441.900	467.500
Other Income	36.100	10.100	18.800
Total Income	617.700	452.000	486.300
Total Expenditure	570.000	437.100	454.300
Operating Profit	47.700	14.900	32.000
Interest	00.000	00.000	00.000
Gross Profit	47.700	14.900	32.000
Depreciation	00.300	03.500	03.500
Tax	18.800	-07.400	03.000
Reported PAT	28.600	18.600	25.500

200509 Quarter 2 –

Expenditure Includes Purchases Rs 280.509 million (Increase)/Decrease in Stock in Trade Rs 77.977 million Staff Cost Rs 7.053 million Other Expenditure Rs 71.597 million Tax includes Provision for Current Tax Rs (7.428) million Deferred Tax Rs 0.191 million EPS is Basic and Diluted 1. The above results were approved by the Board of Directors of the Company at the meeting held on October 28, 2005. 2. Segment reporting as defined in Accounting Standard 17 is not applicable to the Company. 3. During the period under review, from July 01, 2005 to September 30, 2005, there was no complaint from investors. 4. Figures for the previous period have been regrouped / reclassified, wherever necessary, to make them comparable with the current period figures.

200512 Quarter 3 –

1. The above results were approved by the Board of Directors of the company at the meeting held on 25th January 2006 2. Segment reporting as defined in Accounting Standard 17 is not applicable to the country. 3. During the period under review, from 1-10-2005 to 31-12-2005 , there was no complaint from investors. 4. Figures for the period have been regrouped / reclassified, whenever necessary, to make them comparable with the current period figures.

KEY RATIOS

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Debt-Equity Ratio	0.00	0.00	0.24
Long Term Debt-Equity Ratio	0.00	0.00	0.00
Current Ratio	1.94	1.68	1.71
TURNOVER RATIOS
Fixed Assets	258.81	226.52	186.12
Inventory	2.84	1.40	1.56
Debtors	21.50	2.84	0.58
Interest Cover Ratio	370.67	220.25	1.39
Operating Profit Margin(%)	5.31	7.51	12.22
Profit Before Interest And Tax Margin(%)	5.27	7.48	12.17
Cash Profit Margin(%)	3.12	5.66	3.42
Adjusted Net Profit Margin(%)	3.08	5.63	3.37
Return On Capital Employed(%)	10.86	9.20	6.71
Return On Net Worth(%)	6.34	6.91	2.29

STOCK PRICES

Face Value	Rs. 10.00/-
High	Rs. 347.00/-
Low	Rs. 335.00/-

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Sahara India Media Communications Ltd(SIMCL), the flagship of Subrato Roy promoted Shara India Pariwar is one of the leading media company in India with active presence in family entertainment segment and News segment. 

 SIMCL's Hindi satellite TV channel 'Sahara Manoranjan' provides wholesome family entertainment by offering a variety mix of programming that includes soaps, serials, mini-series, blockbuster movies, mega events and other interesting programmes. Sahara Manoranjan is an free to air channel apart from being a channel that gives 24 hrs programming in digital mode. 

 Sahara Samay under this name it telecasts one 24 hrs free to air digital Hindi news channel and 31 round-the-cloct city centric regional satellite news channels using world's most advanced, Asia's largest and India's first fully - automated electronic new production and stat-of-the art transmission technology.

FINANCIAL / OPERATIONAL RESULTS (Rs. In Millions) 

 During the sear under review the total income from business was Rs.1685.368 millions, increase by Rs. 217.215 millions from last sear. Increase in income is mainly due to increase in the sales of Rs. 931.448 Millions from the last year. The Total expenses for the current sear has increased by Rs. 200.387 Millions in comparision to the last sear expenses. Profit after to for the year was Rs. 65.043 Millions decreased Rs. Rs 1.247 Millions from the last sear. 

 DIVIDEND 

 With a vies to conserve resources with the Company the Board of Directors have decided not to recommend Ins dividend for the sear 2004-2005. 

 CAPITAL ISSUE 

 During the sear under review the Company has not allotted any fresh equity. 

 PROGRAMMING (PRESENT) 

 INDIAN TELEVISION SCENARIO 

 The Television market in India consists of revenue from the Subscription, Advertising, and Software segments. The television software segment consists of revenue earned by the producers of television content. 

 Overall, the Indian broadcasting industry has been growing at a fast pace. It is expected to grow @ 15% per annum in the future. The growth would be driven by both, advertisement revenues as well as by Cable and Satellite penetration. 

 The findings of the recent National Readership Survey (NRS) 2005 reveal that Cable and Satellite (C&S) penetration has increased by 53% to 61 million homes in 2005, up from 40 million homes in 2002. Only 56% of all TV homes in India have C&S subscription, therefore there is an immense scope for further growth. 

 Television now reaches 108 million homes, which means it has just crossed the 50% mark of all homes, thus reflecting a growth of 32% since 2002 in terms of television penetration and will continue to grow at the same pace, if not faster. 

 In 2002, there were 134 million individuals watching TV in an average week; in 2005, that number has risen to as many as 190 million individuals. 

 The TV sector now contributes over 6096 of the entertainment industry revenues. The Indian Television Industry registered a high growth in 2004 with Rs. 138000.0 millions in revenues. This represents a growth of 1300 over the previous year. 

 The industry is expected to grow at an average of almost 1806 over the present decade to touch revenues of Rs. 371000.0 millions in 2010. 

 IMPORTANCE Oh TELEVISION CONTENT 

 Today, channels are investing heavily in content and in its promotion, marketing and distribution. This is because the primary differentiator across all General Entertainment Channels today is the quality of content  

 of the programs that are aired for audiences across the entire Hindi-Speaking Markets. 

 The importance of good quality original programming cannot be overstated, and in keeping with its spirit of producing superlative entertainment, the Company has produced, commissioned and acquired a broad spectrum of programs across genres such as soaps, family dramas, top-notch children's shows, thrillers, star-studded events, feature films across film-based programs and of course, India's first and only Live Game show! 

 PROGRAMS - SAHARA ONE TELEVISION 

 Dial One Aur Jeeto -  

 The biggest innovation in non-friction programming across all GECs this year. 

 Raat Hone Ko Hai -  

 A serial of gripping supernatural thriller stories. Directed by the renowned Shri B.P. Singh and produced by Fireworks Productions. 

 Ruby Duby Hub Dub -  

 Produced by Creative Eve. 

 Kamini Damini -  

 Directed by famous director Ravi Chopra. 

 Baal Baal Bachche -  

 Produced by the celebrated producer - director duo of Tony and Deeya Singh. 

 Bollywood Aur Kya -  

 A complete Bollywood film magazine. 

 REALITY SHOWS 

 The year also marked a turn around in the fortune of reality shows. For viewers getting an overdose of family soap operas, the reality show 'Mr & Mrs Bollywood' launced by the company, was a great success. 

 CRITICAL ACCLAIM FOR SAHARA ONE TELEVISION PROGRAMS 

 Several of our shows won critical acclaim by being nominated for/winning awards. The following is a list of award-winning and award nominated shows: 

 SHOW CATEGORY AWARD WON/ NOMINATION FOR 

 Haqeeqat Best Actress- Geeta Nair Hero Honda ITA Awards 

 Cinema Ghar Best telefilm 'PHIR SE' RAPA Awards 

 Haqeeqat Best Drama RAP Awards 

 Kadam Best Mini Series Hero Honda ITA Awards (Nominated) 

 Ruby Duby Hub Dub Best Comedy Series Marshall's Comedy Awards (Nominated) 

 Malini Iyer Best Actress in a comic Marshall's Comedy Awards Shridevi (Nomination) 

 PROGRAMMING (FUTURE PLANS) 

 FICTION SHOWS 

 We plan to produce at least five very strong programs in the genre of Fiction in FY 2005-06. These shows will target viewers of every age and demographic in the Hindi Speaking Markets. 

 Woh Rehne Wali Mchlon Ki -  

 This daily half-hour show will be the first television venture by the celebrated director of blockbuster Hindi movies, Mr Sooraj Barjatiya of Rajshri Productions Woh Rehne Wali Mehlon Ki is the story of a beautiful and delicate girl Kani, who has been brought up in her father's affluent home, but has to cope with life at its harshest, and emerges a winner! 

 Hare Kkaanch Ki Choodiyaan -  

 This daily half-hour drama will be the story of a simple middle-class girl Shyamlee, and her gradual transformation into a woman of great strength. We expect viewers to empathize and bond with the main protagonist. This show will strategically be targeted at female audiences in the afternoon slot. 

 Kohinoor -  

 This daily half-hour thriller is a story of two groups who have been assigned to find the original Kohinoor diamond, missing now for over 150 years. This racy, thrill-a-minute show is the search for the coveted Kohinoor! 

 Kittu Sab Jaanti Hai -  

 This daily half-hour family drama is the story of Kittu, a young girl, and her metamorphosis from a simple, unrecognizable middle class girl to a successful journalist. 

 NON-FICTION SHOWS 

 Sahara India Mass Communication Limited, which has built a name for itself as an innovative production house for producing India's first Live game show, Dial One Aur Jeeto, is now set to build upon its reputation as a provider of cutting-edge non-fiction shows. 

 We plan to produce the following Non-Fiction Shows: 

 Mission Ek Crore -  

 Planned as a truly mega game show, to be hosted by a top superstar of Bollywood, Mission Ek Crore will send four participants into a money-spending frenzy. 

 Bolein Ssitare -  

 With this weekly astrological chat show, the Company will take India's latest craze of Numerology to the living rooms of our viewers. Bolein Ssitare will feature the most famous numerologist of our country; Sanjay Jumani. 

 Doli Sajaake Rakhna -  

 Weddings are a staple obsession in Indian homes, and hence, we have planned a non-fiction show that taps this obsession to ensure viewership from a very wide audience. 

 Dial One Aur Khelo -  

 This swill be the weekend special episode of our popular Live game show, Dial One Aur Jeeto. 

 FILMS - SAHARA ONE MOTION PICTURES 

 Another wing of Sahara India Mass Communication Limited, named Sahara One Motion Pictures, is India's biggest motion picture company, which is driven by the desire to delight audiences with quality content. Sahara One Motion Pictures not only produces quality movies, but also undertakes distribution, marketing, acquisition and promotion of content that it believes will be loved by the masses. 

 Sahara One Motion Pictures deals with not just established film production houses, but also with some of the most creative motion picture directors, providing them with the best and most professional, hassle-free production, marketing and distribution support. 

 Some of the most respected talent of Indian Cinema is associated with Sahara One Motion Pictures. These include BSK Films, Ram Gopal Varma's Varma Corp, K Sera Sera, Nitin Manmohan's Fourth Wall Productions, Percept Picture Company, Madhur Bhandarkar, Priyadarshan, Imtiaz Ali, Sujoy Ghosh amongst others. 

FILMS (FUTURE PLANS) 

 The company has a robust future business plan which includes the setting up of an international marketing division, and releasing several films in the coming year. 

CORPORATE GOVERNANCE 

 Corporate Governance Guidelines as specified in the Listing Agreement with Stock Exchanges is applicable to the Company from the Financial Year 2001-2002. Company has complied with the Guidelines of Corporate Governance and a separate report on the Corporate Governance is forming part of the Annual Report. 

FUTURE OUTLOOK 

 As the television set moves from the drawing room into the bedroom and individual viewership (versus family viewership) increases, niche channels catering to individual interests like gardening or extreme sports will multiply. The growth in the number of multiplexes, digital cinemas and the home video market rentals and purchases of DVDs/VCDs and other future formats will drive the Indian film industry in the next five years. The home video market is also expected to add to the overall pie of the Indian Film Industry, as films now generate maximum box office business within the first four to six weeks of release. Film producers are expected to garner larger shares from sale of satellite rights considering the growth in the number of television channels in the country and shorter release windows. The growth of the Indian Diaspora will continue to drive the increasing overseas collections for the Indian film producers, not just by way, of theatrical rights but also by way of home video rights. The advent of digital delivery system of films will be the answer to piracy in the country; though its growth will be modest. Better revenue tracking systems will also work as an effective step towards the eradication of piracy in this segment. 

AS PER WEBSITE

Sahara One is the media entertainment arm of the Sahara India Pariwar, which is the result of the vision of "Saharasri" - the Honorable Subrata Roy Sahara, Managing Worker & Chairman of the Sahara India Pariwar.

Sahara One’s Vision
“To offer world-class entertainment in Television and Motion Pictures
so as to become the preferred destination of viewers and stake-holders.”

With the mission to entertain India, Sahara One today has a strong presence in both, Television and Motion Pictures, which are the two largest media of entertainment in India today.

While Sahara One Motion Pictures is the biggest motion pictures studio in India, Sahara One Television is one of the key General Entertainment channels in the Satellite & Cable TV scenario in the country. Sahara One also plans to launch a Hindi movie channel called Filmy, shortly.

With strong professional teams handling each business, Sahara One is poised for strong consolidation and growth.

To all their esteemed media associates: the editors, journalists, writers, reviewers, sub editors and everyone else in all the publications across the country…

Thank you for keeping your esteemed readers informed of their endeavour to bring the best of television and motion pictures entertainment in India and worldwide.

As Sahara One’s Television and Motion Pictures businesses grow from strength to strength amongst viewers and all their business associates, they at the Sahara One Media Centre will keep you informed and updated on all the action at Sahara One.

On these pages, you can download their Media Releases, and submit a request to be put on their Mailing List to receive all their Media announcements.

One again, thank you for the invaluable support!

With best regards and SAHARA PRANAAM!

Pavan R Chawla
Head – PR & Publicity, Sahara One
Sahara One Towers (2nd Floor)
Kamala Mills Compound, Lower Parel West,
Mumbai, India 400013

CMT REPORT [Corruption, Money laundering & 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 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.46.36
UK Pound	1	Rs.84.49
Euro	1	Rs.58.38

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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 & 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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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

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