MIRA INFORM REPORT

Report Date :

02.04.2007

IDENTIFICATION DETAILS

Name :	MID-DAY MULTIMEDIA LIMITED
Formerly Known As :	MID-DAY PUBLICATIONS LIMITED
Registered Office :	Peninsula Centre, Dr. S. S. Rao Road, Parel, Mumbai – 400 012, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	13.03.1981
Com. Reg. No.:	11-024052
CIN No.: [Company Identification No.]	L22100MH1981PLC024052
TAN No.: [Tax Deduction & Collection Account No.]	MUMM21020G
PAN No.: [Permanent Account No.]	AAACM7512L
Legal Form :	It is a public limited liability company. The shares of the company are listed on the Stock Exchanges.
Line of Business :	To carry on the business as printers and publishers of any newspapers, journals, magazines, books and other literacy works undertakings and publication including printing of reports, accounts, statements and stationery, calendars, pictures and other works of art.

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 5000000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Peninsula Centre, Dr. S. S. Rao Road, Parel, Mumbai – 400 012, Maharashtra
Tel. No.:	91-22-24197171
Fax No.:	91-22-24150009
E-Mail :	investor@mid-day.com
Website :	http://www.middaymultimedia.com
Printing Press :	Ø 156 - D. J. Dadajee Road, Tardeo, Mumbai – 400 034, Maharashtra Tel. No. : 91-22-494 2586 (5 Lines) Fax No. : 91-22-493 5115 Telex : 011-75931 NEWS IN Ø Plot No. R-847/3, T.T.C. Industrial Area, Rabale, Navi Mumbai , Maharashtra Ø Unit No. 2, Building No. 1, Steelmade Industrial Estate, Marol Maroshi Road, Andheri (East), Mumbai – 400 059
Business Representatives At:	Chennai, Ahmedabad, Pune, Kolkata and Secunderabad.
Branches :	Located at : Ø 612-A, Indra Prakash, 21, Barakhamba Road, New Delhi - 110 001. Ø Sophia’s Choice, 2^nd Floor, Office 204 No. 7, St. Mark’s Road, Bangalore - 560 001, Karnataka

DIRECTORS

Name :	Mr. Tarique Ansari
Designation :	Managing Director
Name :	Mr. Khalid A. H. Ansari
Designation :	Chairman
Name :	Mr. Narayan Varma
Designation :	Director
Name :	Mr. Nana Chudasama
Designation :	Director
Name :	Mr. Rakesh Jhunjhunwala
Designation :	Director
Name :	Mr. Nikhil Khattau
Designation :	Director
Name :	Mr. Ravi Raheja
Designation :	Director
Name :	Mr. Adille Sumariwalla
Designation :	Director
Name :	Mr. Shekhar Gupta
Designation :	Director
Name :	Mr. Kiran S. Karnik
Designation :	Director
Name :	Mr. Goolam E. Vahanvati
Designation :	Director
Name :	Ms. Vidya Shembekar
Designation :	Company Secretary & Compliance Officer

· Solicitor & Legal Advisor --- Mulla & Mulla & Craigie Blunt & Caroe

SHAREHOLDING PATTERN

As on 31.12.2006

Sr.No.	Category of Shareholder	Total number of shares	Total shareholding as a % of total number of shares
A	Shareholding of Promoter and Promoter Group
1	Indian
a	Individuals/Hindu Undivided Family	21687247	48.4563
b	Bodies Corporate	1548762	3.4604
	Sub-Total (A)(1)	23236009	51.9168
	Total Shareholding of Promoter and Promoter Group (A)=(A)(1)+(A)(2)	23236009	51.9168
B	Public Shareholding
a	Mutual Funds/UTI	1247130	2.7865
B	Financial Institutions/Banks	18500	0.0413
c	Foreign Institutional Investors	2690000	6.0103
	Sub-Total (B)(1)	3955630	8.8382
2	Non-institutions
a	Bodies Corporate	4475895	10.0006
b	Individuals
	i) Individual shareholders holding nominal share capital upto Rupees One lakh.	8333005	18.6186
	ii) Individual shareholders holding nominal share capital in excess of Rupees One Lakh.	4542439	10.1493
c	Any Other (specify
	i) Clearing Member	138250	0.3089
	iii) NRI	75049	0.1677
	Sub-Total (B)(2)	17564638	39.2451
C	Total Public Shareholding (B)=(B)(1)+(B)(2)	21520268	48.0832
	TOTAL (A)+(B)	44756277	100.0000
	Shares held by Custodians and against which Depository Receipts have been issued	0	0
	GRAND TOTAL (A)+(B)+(C)	44756277	100.0000

35 (I) (b) Statement showing Shareholding of persons belonging to the category “Promoter and Promoter Group”

Sr. No.	Name of the Shareholder	No of Shares	Shares as a percentage of total number of shares
1	Mr. Khalid Ansari	4338055	9.6926
2	Mr. Tarique Ansari	4337298	9.6909
3	Mrs. Rukya Ansari	4337298	9.6909
4	Mr. Sharique Ansari	4337298	9.6909
5	Ms. Tehzeeb Ansari	4337298	9.6909
6	Ferari Investments & Trading Company Private Limited	1160560	2.5931
7	Meridian Holding & Leasing Company Private Limited	165679	0.3702
8	Inquilab Offset Printers Private Limited	222523	0.4972
	Total	23236009	51.9168

35 (I) (c) Statement showing Shareholding of persons belonging to the category
“Public” and holding more than 1% of the total number of shares

Sr. No.	Name of the Shareholder	No of Shares	Shares as a percentage of total number of shares
1	Jhunjhunwala Rakesh Radheshyam	2250000	5.0272
2	T. Rowe Price International Inc A/C T. Rowe Price New Asia Fund	1460000	3.2621
3	T. Rowe Price International Inc A/C T. Rowe Price International Discovery Fund	730000	1.6311
4	PL Advisory Services Pvt. Ltd.	641750	1.4339
5	Melcher Indian Opportunities Fund	500000	1.1172
6	Reliance Capital Trustee Co. Ltd	500130	1.1175
	Total	6081880	13.5889

35 (I) (d) Statement showing details of Locked-in shares

Sr. No.	Name of the Shareholder	No of Shares	Shares as a percentage of total number of shares
1	T. Rowe Price International Inc A/C T. Rowe Price New Asia Fund	1460000	3.2621
2	T. Rowe Price International Inc A/C T. Rowe Price International Discovery Fund	730000	1.6311
3	Ferrari Investments and Trading Company Private Limited	1160560	2.59
4	Banhem Financial and Investment Consultants Limited	3968
	Total	3354528	7.4832

BUSINESS DETAILS

Line of Business :

To carry on the business as printers and publishers of any newspapers, journals, magazines, books and other literacy works undertakings and publication including printing of reports, accounts, statements and stationery, calendars, pictures and other works of art.

Products :

Item Code No. (ITC Code)	Product Description
49021001	Newspaper Publishing
	Outdoor Advertising
	Interactive

Imports :

Products :

Newspapers, Printing Machinery And Photographic Materials

Countries :

Europe

Terms :

Purchasing :

L/C and occasionally on credit terms.

GENERAL INFORMATION

No. of Employees :

1000

Bankers :

Bank of Baroda

Tardeo, Mumbai - 400 034

Facilities :

Particulars	31.03.2006 Rs. In millions	31.03.2005 Rs. In millions
SECURED LOANS
From Banks
Cash Credit (Secured against hypothecation of book debts and stock of newsprint and further secured by pari passu charge on moveable and immovable assets, present and future of the company and also secured by personal guarantee of Chairman and Managing Director.)	74.971	38.606
Foreign currency loan (Repayable within a year) (Secured against hypothecation of book debts and stock of newsprint and further secured by pari passu charge on moveable and immovable assets, present and future of the Company and also secured by personal guarantee of Chairman and Managing Director.)	44.636	46.189
Term loan (External Commercial Borrowing) (Secured against mortage of existing & future fixed assets of the Company, of associates and personal guarantee of Chairman and Managing Director) Due within a year Rs.17.711 Millions (Rs.15.990 millions)	70.845	86.836
Car Loan (Secured against hypothecation of cars) Due within a year RS. 0.486 Millions ( Rs. 1.128 Millions)	0.518	1.647

Banking Relations :	Satisfactory
Auditors :
Name :	M/s Haribhakti And Company Chartered Accountant
Address :	Free Press House, Nariman Point, Mumbai – 400 021
	Tel. No. 91-22-2871099 / 1806 Fax No. 91-22-2856237 E Mail : hbhakti@vsnl.com
	ASSOCIATES: Ø Inquilab Offset Printers Private Limited Ø Newsday Communications Private Limited Ø Mid-Day Media Limited Ø Meridian Holdings & Leasing Private Limited SUBSIDIARIES: Ø Mid-Day Outdoor Limited Ø M C Media Limited Ø Mid-Day Cyberworks Private Limited Ø Radio Mid-Day West (India) Limited Ø Mid-Day Radio North (India) Limited Ø Mid-Day Broadcasting South (India) Limited Ø Radio Marketing Services (India)

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
5,00,00,000	Equity Share	Rs.10/- Each	Rs.500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4,47,56,277	Equity Share	Rs.10/- Each	Rs.447.562 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		447.562	425.662	340.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		820.767	582.127	606.200
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1268.329	1007.789	946.700
LOAN FUNDS
1] Secured Loans		192.067	174.245	50.700
2] Unsecured Loans		0.000	0.000	40.000
3] Commercial Paper			30.000	0.000
TOTAL BORROWING		192.067	204.245	90.700
DEFERRED TAX LIABILITIES		20.633	16.584	0.000
TOTAL		1481.029	1228.618	1037.400
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		447.186	257.408	160.600
Capital work-in-progress		0.000	0.000	12.000
INVESTMENT		665.336	176.579	182.600
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	53.951	28.995	32.100
	Sundry Debtors	206.486	280.825	265.000
	Cash & Bank Balances	31.655	91.555	25.900
	Other Current Assets	40.744	33.920	0.000
	Loans & Advances	186.031	480.764	449.600
Total Current Assets		518.867	916.059	772.600
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	141.855	113.168	94.100
	Provisions	8.505	14.632	09.800
Total Current Liabilities		150.360	127.800	103.900
Net Current Assets		368.507	788.259	668.700
MISCELLANEOUS EXPENSES		0.000	6.372	13.500
TOTAL		1481.029	1228.618	1037.400

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		1043.353	1024.303	931.100
Other Income		17.583	10.339	17.600
Total Income		1060.936	1034.642	948.700
Profit/(Loss) Before Tax		127.592	90.072	131.600
Provision for Taxation		46.632	29.000	40.900
Profit/(Loss) After Tax		80.960	61.072	90.700
Expenditures :
	Cost of Goods Sold	421.526	337.890	0.000
	Manufacturing Expenses	0.000	0.000	204.400
	Administrative Expenses	61.074	137.629	0.000
	Raw Material Consumed	0.000	0.000	207.900
	Selling & Distribution	67.150	73.998	179.400
	Consumption of stores and spares parts	0.000	0.000	0.000
	Increase/(Decrease) in Finished Goods	0.000	0.000	0.000
	Salaries, Wages, Bonus, etc.	189.708	162.168	146.800
	Managerial Remuneration	0.000	0.000	0.000
	Payment to Auditors	0.000	0.000	0.000
	Finance Charges	13.536	8.700	0.000
	Insurance Expenses	0.000	0.000	0.000
	Power & Fuel	0.000	0.000	22.100
	Depreciation & Amortization	28.922	31.125	0.000
	Other Expenditure	151.427	193.063	17.200
Total Expenditure		933.343	944.573	777.800

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2006 (1^st Quarter )	30.09.2006 (2^nd Quarter)	31.12.2006 (3^rd Quarter)
Sales Turnover	253.700	260.100	267.000
Other Income	05.500	05.500	10.800
Total Income	259.200	265.600	277.800
Total; Expenditure	240.600	229.000	230.700
Operating Profit	18.600	36.600	47.100
Interest	03.700	04.700	03.700
Gross Profit	14.900	13.900	43.400
Depreciation	07.700	10.200	09.600
Tax	01.700	04.200	11.000
Reported PAT	03.300	14.500	22.100

200606 Quarter 1 --------------- Notes Expenditure Includes Cost of printing / painting Rs 111.30 million News expenses Rs 7.60 million Staff Cost Rs 60.80 million Selling & Distribution Rs 29.00 million Rent, royalty, rates and Taxes Rs 8.80 million Other expenses Rs 23.10 million Tax Includes Provision for Current Tax Rs 1.00 million Deferred Tax Rs 2.20 million Fringe Benefit Tax Rs 0.70 million EPS is Basic & Diluted Status of Investor Complaints for the quarter ended June 30, 2005 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 01 Complaints disposed off during the quarter 01 Complaints unresolved at the end of the quarter Nil 1. There is no outdoor operation during the quarter due to exit from the outdoor business. Hence the numbers are not comparable. 2. Radio license fees are significantly lower due to change in Radio license fees regime. 3. The above results were reviewed by the Audit committee and approved at the meeting of the Board of Director of the company held on July 17, 2006. 4. Statutory auditors of the company have carried out a Limited Review of the stand alone financial results of the company for the quarter ended June 30, 2006.

200609 Quarter 2 --------------- Notes: 1. There is no outdoor operations during the quarter due to exit from the outdoor business. Hence the numbers are not comparable. 2. Radio license fees are significantly lower due to change in Radio license fees regime. 3. The above results were reviewed by the Audit Committee and approved at the meeting of the Board of Directors of the Company held on October 31, 2006. 4. Statutory auditors of the Company have carried out a limited review of the stand-alone financial results of the company for the half year ended September 30, 2006. 5. There were no investor complaints pending at the beginning of the quarter. During the quarter one complaint was received and was resolved within 30 days and there were no complaints pending at the end of the quarter.

200612 Quarter 3 --------------- Notes EPS is Basic & Diluted Status of Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 01 Complaints disposed off during the quarter 01 Complaints unresolved at the end of the quarter Nil 1. There is no outdoor operation during the quarter due to exit from the outdoor business. Hence the numbers are not comparable. 2. Radio license fees are significantly lower due to change in Radio license fees regime. 3. The above results were reviewed by the Audit Committee and approved at the meeting of the Board of Directors of the company held on January 29, 2007. 4. Statutory auditors of the company have carried out a Limited review of the stand alone financial results of the company for the Nine months ended December 31, 2006. 5. At the Board meeting held on January 22, 2007 the Board has allotted: 29,27,333 equity shares at a price of Rs 60 each aggregating to Rs 17,56,39,980 and 8,33,333 share warrants to Ferrari Investments and Trading Company Pvt Ltd a promoter group company at an exercise price of Rs 60 each. (10% of warrant exercise price i.e. Rs 6 per warrant aggregating to Rs 49,99,998/- was paid upfront as subscription price and balance 90% i.e. Rs 54/- per warrant shall be payable at the time of conversion of warrants into equity shares). 26,85,000 equity shares at a price of Rs 60 each aggregating to Rs 16,11,00,000/- and 0.01% 833,333 convertible preference shares at a price of Rs 60 per share aggregating to Rs 4,99,99,980/- to Banhem Financial and Investment Consultants Ltd, an affiliate of Bennett Coleman and Company.

KEY RATIOS

Particulars	31.03.2006	31.03.2005	30.03.2004
Debt-Equity Ratio	0.17	0.15	0.09
Long Term Debt-Equity Ratio	0.11	0.10	0.06
Current Ratio	3.09	4.67	5.39
TURNOVER RATIOS
Fixed Assets	2.24	2.99	2.88
Inventory	25.14	33.53	39.29
Debtors	4.28	3.75	3.63
Interest Cover Ratio	10.46	11.36	17.05
Operating Profit Margin(%)	16.30	12.68	18.35
Profit Before Interest And Tax Margin(%)	13.53	9.65	15.01
Cash Profit Margin(%)	10.53	9.00	13.08
Adjusted Net Profit Margin(%)	7.76	5.97	9.74
Return On Capital Employed(%)	10.59	8.86	14.46
Return On Net Worth(%)	7.12	6.25	10.06

STOCK PRICES

Face Value	Rs.10.00
High	Rs.39.20
Low	Rs.37.40

LOCAL AGENCY FURTHER INFORMATION

BUSINESS

The company is owner, printer and publisher of Mid-Day, Sunday Mid-Day, and Inquilab Daily newspapers.

Some of the publications of the company include Mid-Day Good Food Guide to Mumbai, Mid-Day Mumbai Shopping Guide, The Mid-Day Millennium Horoscope, Mid-Day Good Food Guide to Pune, etc.

The company's caption leasehold land in which printing unit is housed is of medium size.

The company’s fixed assets of important value include goodwill, plant and machinery, Andheri Press, Tardeo Press, factory premises, audio studio, leasehold property, office equipments, office premises, furniture and fixtures, vehicles, air conditioners, photographic equipments, fire fighting systems, and electric installation.

Company profile :

Mid-Day Multimedia was incorporated in Mar.'81 as Mid-Day Publications Private Limited It has been promoted by Khalid Ansari and Tarique Ansari. Thecompany was formed with the object to take over the newspaper publishing business of Inquilab offset Printers Private Limited, which too was controlled by the same promoter family. Publications like, Daily Inquilab, Sports week, Mid-Day and Sunday Mid-Day were transferred to the new company. Mid-Day Publications was converted into a deemed public entity inJul.'89and in May, 2000, it was converted into a Public Ltd company. In Jun. 2000,its name was changed to Mid-Day Multimedia to reflect the diversification of its activities into other media fields and the changing nature of the business. Some of the other publications of the company include Mid-Day Good Food Guide to Mumbai, Mid-Day Mumbai Shopping Guide, The Mid-Day Millennium Horoscope, Mid-Day Good Food Guide to Pune. The company has subsidiaries namely AIIM Associates Private Limited Mid-Day Outdoor Ltd, Radio Mid-Day West (India) Ltd, Mid-day Broadcasting South (India) Private Limited, Mid-Day Radio North (India) Limited. The company launched Midday.com in 1999, to exploit the new media of internet. The site has been relaunched as chalomumbai.com with better contents and links. It was also the first private player to exploit Radio’s a media and in a very short span of time it established Radio Mid-Day as premium FM brand, programming and marketing radio in Bombay, Panaji, Madras, Bangalore and Delhi.Mid-Day Multimedia entered into the business of outdoor advertising in1998. The business was run by Mid-Day Outdoor Ltd but with effect fromApr.'2000, the operations has been taken over by Mid-Day Multimedia Limited. The main revenue is earned from advertising on bus queue shelters, kiosks and in railway stations. 

In Feb. 2001, the company came out with a Public Issue of Rs 500.000 Millions with an object to invest in the growth of the publishing business and expand the outdoor business of the company. The total project cost is estimated to be Rs 53950.000 Millions.Offset printing press at Tardeo has been installed by the company during the year and the production of the press has been commissioned during the September 2000. The company has bagged licenses for FM radio in Mumbai, Chennai and Delhi. The major achievement in 2001-02 is the launching of free neighborhood newspaper-METRO, and the company is planning to slowly roll out across additional neighborhoods. During 2004-2005, the company acquired 40,00,000 Equity shares @10 each of Radio Mid-day West (India) Limited, an existing 100% subsidiary of the company. The company also acquired 9,430 Equity shares @10 each of Mid-Day Radio North (India) Ltd and 9,430 Equity shares @Rs.10 each of Mid-day Broadcasting South (India) Private Limited. With this acquisition Mid-day Broadcasting south (India) Private Limited and Mid-Day Radio North (India) Private Limited became 100% subsidiary of the company. During 2005-2006, the paid up equity capital of the company increased from Rs.425.662 Millions To Rs.447.562 Millions on account of allotment of 21,90,000 equity shares of Rs.10/- each at a price of Rs.82/- per share on a preferential basis to the T. Rowe Price International Discovery Fund and T. Rowe Price New Asia Fund operated by T. Rowe Price International Inc.. The company also acquired further 40,000 equity shares @10 each of the companies subsidiary Mid-day Radio North (India) Limited.The company was also signed by BBC as a Joint Venture partner in radio business.

Strategic Alliance between Times of India and Mid-Day | Dec 11, 2006

Mid-Day Multimedia Limited, publishers of Mid-Day in Mumbai and Bangalore and Bennett Coleman And Company Limited, publishers of the Times of India and Economic Times have signed a business cooperation agreement. This alliance will benefit both organizations through cooperation in printing, circulation and advertising sales. In order to support Mid-Day’s plans for growth in print and FM radio in metro markets across the country, the promoters of Mid-Day are enhancing their investment in the company. In demonstration of commitment to the business cooperation agreement, Bennett Coleman is undertaking to subscribe to a preferential allotment of Mid-Day shares, subject to shareholder and regulatory clearances. The incremental investment by the promoters of Mid-Day is Rs 225.600 Millions while the investment by Bennett Coleman Company Limited (Times Group) is Rs 211.100 Millions at a share price of Rs 60 per share. After both rounds of investment, promoters will own 51% of the shareholding of the company and Bennett Coleman Company Limited. (Times Group) will own 6.65%. Ravi Dhariwal, Executive Director of Bennett Coleman and Tariq Ansari, Managing Director of Mid-Day Multimedia made the following joint statement in Mumbai:

‘The Times of India, with its leadership position in the morning broadsheet market and Mid-Day with a successful formula for the middle-of-the day, are in fact complementary plays. With this alliance we will endeavor to garner a larger market share of both readers and advertising in major metros of the country’.

---

Agreement with BBC | January 03, 2006

This is to inform you that 'BBC Worldwide Holdings B.V.', a company incorporated under the laws of the Netherlands, having its registered office at c/o Meespierson Intertrust, Rokin 55, 1012 KK Amsterdam (BBCWW), has entered into an agreement with Mid Day Multimedia Limited to invest Rs.318.500 Millions in the equity shares of Radio Mid Day West (India) Private Limited. This is as per the Regulatory Guidelines issued by Ministry of Information and Broadcasting and the FIPB permission received from Ministry of Finance.The Company further wish to inform you that, 'Rare Enterprises' a Partnership Firm having its office at 151, Nariman Bhavan, Nariman Point, Mumbai - 400 021 and Mr. Rakesh Jhunjhunwala, who is a Partner at Rare Enterprises, have entered into an agreement with Mid Day Multimedia Limited to invest a total of Rs.100.000 Millions in the equity shares of Radio Mid Day West (India) Private Limited. Radio Mid Day West (India) Private Limited is a subsidiary of Mid Day Multimedia Limited.These funds will be utilized by Radio Mid Day West (India) Private Limited for bidding for licenses under Phase II of the Private FM Radio Broadcasting Policy announced by the Ministry of Information and Broadcasting.

Company Performance :

The Company has performed very well during this financial year in an extremely competitive scenario. The profit before tax of The company has increased by 42% i.e. from Rs.89.900 Millions in FY 04-05 to Rs.127.500 Millions in FY 05-06. At the Group front, the company has done well, from a profit after tax of Rs.2.300 Millions in last year, the group has reported flourish to a profit after tax of Rs.62.000 millions. Although there was marginal increase in revenues, the profits have increased mainly due to discontinuation of the outdoor business & the reversal of Radio License fees due to migration to phase 2 licensing norms, Site Rentals and higher Radio Fees.

Fixed Assets :

1. Good Will
2. Technical Know How
3. License And Marketing Rights
4. Freehold Land
5. Plant & Machinery
6. Andheri Press
7. Tardeo Press
8. Rabale Press
9. Factory Premises
10. Office Premises
11. Photographic Equipments
12. Air Conditioners
13. Office Equipments
14. Furniture & Fixture
15. Vehicles
16. Fire Fighting Systems
17. Electric Installation
18. Computer
19. Computer Software
20. Capital Work in Progress

(Including Capital Advances )

Notes to Accounts

1. Mid-Day Radio North (India) Limited RS.7125.000 Millions
2. In respect of corporate guarantee issued to State Bank of Travancore in respect of cash credit facility granted to SSI Media India Private Limited, up to Rs.5.000 Millions
3. Inrespect of guarantees issued by company bankers to MSRDC and other authorities for Rs.1.500 Millions
4. Claims against the company in respects of various suits and claims of employees, amount not ascertainable (previous Year Unascertainable).
5. The company has entered into an operational merger of outdoor business with clear Channel Communications India Private Limited (CCCI), which came into effect from September 1, 2004 to operate its existing outdoor advertising contact. The contract came to an end on September 30,2005
6. The company has allotted 21,90,000 equity shares, on 23, January 2006, to two funds operated by T. Rowe price International Inc. a FII @ RS.82 per share aggregating to RS. 179.580 Millions. Hence, the paid up capital of the Company stands increased to Rs. 447.562 Millions

7. C.I.F. value of Newsprint Imports 2005—06 2004—05

Rs.326.911 Millions Rs.239.916 Millions

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 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.43.13
UK Pound	1	Rs.85.36
Euro	1	Rs.57.64

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	7
--PROFITABILIRY	1~10	5
--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	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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