MIRA INFORM REPORT

Report Date :

03.04.2007

IDENTIFICATION DETAILS

Name :	BUSINESS STANDARD LIMITED
Registered Office :	Nehru House 4, Bahadur Shah Zafar Marg, New Delhi-110002
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	16.12.1970
Com. Reg. No.:	100242
CIN No.: [Company Identification No.]	U00000DL1970PLC100242
TAN No.: [Tax Deduction & Collection Account No.]	DELB03377D
Legal Form :	Public Limited liability company. Company’s shares are listed on the stock exchange.
Line of Business :	Subject acts as Publisher of Business English Daily - “Business Standard” published from Kolkata, Mumbai and New Delhi and TV Programme Production.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Maximum Credit Limit :
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an old and established company having moderate track. Company’s profitability is under sever pressure. t has some accumulate losses. Payments are reported as slow but correct. The company can be considered normal for small business dealings at usual trade terms and conditions with slight caution initially.

LOCATIONS

Registered Office :	Nehru House 4, Bahadur Shah Zafar Marg, New Delhi - 110002, India
Tel. No.:	91-11-23720202
Fax No.:	91-11-23720201
Branches :	Megabyte Business & Communication Centre, Navrang Building, Top Floor, Swastik Char Rasta, Navrangpura, Ahmedabad – 380 009, Gujarat, India
Branches :	14, Madras Bank Road, 1^st Floor, Bangalore – 560 001, Karnataka, India
Branches :	506, Challamall, 5^th Floor, 11/11-A, Thayagaarya Road, T Nagar, Chennai – 600 017, Tamilnadu, India
Branches :	PTI Building, 3^rd Floor, A C Guards, Hyderabad – 500 004, Andhra Pradesh, India
Branches :	B-2, Paragon Pandominium, Opp. Century Mills, P B Marg, Worli, Mumbai – 400 013, India

DIRECTORS

Name :	Mr. Thomas
Designation :	Chairman and Director
Address :	Revills,45 Cuffe Parade Mumbai:400 005, Maharashtra
Date of Birth/Age :	21.11.1927
Date of Appointment :	05.01.1997
Name :	Mr. Rajwade Vishnu Anant
Designation :	Directror
Address :	2 parswa Kunj, Malaviya road, Vile Parle (E), Mumbai:400 057, Maharashtra
Date of Birth/Age :	29.09.1936
Date of Appointment :	05.01.1997
Name :	Mr Ravi Sheth
Designation :	Director
Address :	12-B, Manek Bldg, 11 LD Ruparel Marg, Mumbai:400 006, Maharashtra
Date of Birth/Age :	04.04.1961
Date of Appointment :	27.021998
Name :	Mr. Sudhir Mulji
Designation :	Director
Address :	150 Malcha Marg, Chanakya Puri, New Delhi:110 021, Delhi
Date of Birth/Age :	14.03.1938
Date of Appointment :	27.02.1998
Name :	Mr. Jaimin Bhatt
Designation :	Director
Address :	3 Orion Apartments, 29a Lallubhai Park, Andheri (W), Mumbai:400 058, Maharashtra
Date of Birth/Age :	30.03.1962
Date of Appointment :	08.02.1999
Name :	Mr. Ajay Sondhi
Designation :	Director
Address :	B/8, Sea Face Park, 50 Bhulabhai Desai Road, Mumbai:400 026, Maharashtra
Date of Birth/Age :	23.07.1960
Date of Appointment :	28.11.2002
Name :	Su-Mei Thompson
Designation :	Director
Address :	Flat 5A, Piccadilly Mansion, 6 Po Shan Road, Hongkong
Date of Birth/Age :	30.06.1966
Date of Appointment :	29.07.2004
Name :	Mr. Falguni Nayar
Designation :	Director
Address :	18/19-D, II Palazzo, Little Gibbs Road, Malabar Hill Mumbai:400 006, Maharashtra
Date of Birth/Age :	19.02.1963
Date of Appointment :	31.03.2005
Name :	Mr. Shivendra Gupta
Designation :	Director
Address :	A-62, Mahindra Gardens, S V Road, Goregaon (W),Mumbai:400 062, Maharashtra
Date of Birth/Age :	12.08.1970
Date of Appointment :	31.03.2005
Name :	Mr. Gaurnag Shah
Designation :	Director
Address :	Oceanic Appts, Flat No:93, 9^th Floor, Dr. Rajbali Patel Road, Off. Bhulabai Desai Road, Off. Bhulabai Desai Road, Mumbai:400 026, Maharashtra

KEY EXECUTIVES

Name :	Mr. Debojyoti Basu
Designation :	Manager
Address :	86 North Avenue, New Delhi:110 001, Delhi
Date of Birth/Age :	31.05.1955
Date of Appointment :	01.08.2003
Name :	Mr. Shalini Thapa Budathoki
Designation :	Secretary
Address :	81 Vasnt Enclave SFS DDA Flats New Delhi :110 057 Delhi
Date of Birth/Age :	12.06.1971
Date of Appointment :	11.01.2001
Name :	Shalimi Thapa Budathoki
Designation :	Company Secretary

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Rajgad Trading Company Private Limited	6250
Jannhavi Investments Private Limited	6250
Budhrain finance Limited	200000
Mr. Rakeshbhai Karsanbhai Patel	31000
Komaf Financial Service Limited	135000
The Great Eastern Shipping company limited	16785787
T N Ninan Jtly Sevanti Ninan	1781020
Kotak Mahindra Investments Limited	14891090
Cumulus Trading Company Private Limited	7470760
Multifaced Finstock (P) Limited	1000000
Mahindra Holding and Finance Limited	500000
Kotak Mahindra Bank Limited	9277708
Pearson Overseas ?Holding Limited	8373638

BUSINESS DETAILS

Line of Business :	Subject acts as Publisher of Business English Daily - “Business Standard” published from Kolkata, Mumbai and New Delhi and TV Programme Production.
Imports :
Countries :	Canada, USA and Finland
Terms :
Selling :	Cash, Contract, L/C or Credit (15 days) terms.
Purchasing :	Cash, Contract, L/C or Credit (30 – 60 days) terms.

GENERAL INFORMATION

Customers :

Retailers

No. of Employees :

500

Bankers :

Ø Kotak Mahindra Bank Limited

Ø Oriental Bank of Commerce

Ø Bank of India

Ø ICICI Bank Limited

Ø Sakura Bank

Ø ABN Amro Bank NV

Ø Global Trust Bank Limited

Facilities :

Secured Loan: Rs in Millions

From Bank
Term Loans	--
Form Others
HFCL	3.162
Vehicle Loan	7.589
Interest Accured and due on tem Loans	--
Total	10.751

Term Loan form Global Trust Bank is secured by a first exclusive charge an all fixed assets of the company, both present and future exclusive charge by way of hypothecation of all book debts and receivables both present and future. Amount due within one year Rs. Nil(previous year Rs. 56.834 Millions)

Vehicles loan form kotak Mahindra Primus Limited is secured by hypothecation of vehicles that have been acquired. Amount due within one year Rs.1.903 millions (Previous year Rs.1.607 Millions)

Loan from HFCL is secured by hypothecation of plant and machinery that have been acquired. Amount due within one year Rs.1.085 Millions (previous year. Rs.0.893 Millions)

Unsecured Lona:

From Financial Times, U K

--

Amount due within one year Rs.Nil(Previous year Rs.64.100 Millions) Maximum amount due at any time during the year Rs.64.100 Millions (Previous year Rs. 64.100 Millions)

Banking Relations :	Satisfactory
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountant
Address :	MCY House, One Okhla Centre, Block A, Okhla industrial Area, New Delhi:110025, Delhi
Associates :	Hamko Financial Services Limited Kotak Mahindra Asset Management Company Limited Kotak Mahindra Capital Company Kotak Mahindra (International) Limited Kotak Mahindra Investments Limited Kotak Mahindra Primus Limited Kotak Mahindra Securities Limited Kotak Mahindra (U.K. K) Limited Matrix Information Services Limited
Subsidiaries :	Business Standard Digital Limited
Parent Company :	Kotak Mahindra Investment Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
61000000	Equity Shares	Rs.10/- each	Rs.610.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
60458503	Equity shares	Rs.10/- each	Rs.604.585 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		604.585	604.585	510.962
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		239.226	239.226	188.461
4] (Accumulated Losses)		(692.151)	(718.509)	(729.478)
NETWORTH		151.660	125.302	[30.055]
LOAN FUNDS
1] Secured Loans		7.664	10.752	68.609
2] Unsecured Loans		0.000	0.000	64.100
TOTAL BORROWING		7.664	10.752	132.709
DEFERRED TAX LIABILITIES
TOTAL		159.324	136.054	102.654
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		82.766	72.637	68.513
Capital work-in-progress		0.000	0.320	0.000
INVESTMENT		0.226	0.226	0.226
DEFERREX TAX ASSETS
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	55.013	21.361	26.139
	Sundry Debtors	121.423	95.664	78.568
	Cash & Bank Balances	48.305	38.712	15.016
	Other Current Assets	0.266	0.287	0.002
	Loans & Advances	23.824	17.874	12.646
Total Current Assets		248.831	173.898	132.371
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	167.166	108.937	94.452
	Provisions	8.409	5.619	4.999
Total Current Liabilities		175.575	114.556	99.451
Net Current Assets		73.256	59.342	32.920
MISCELLANEOUS EXPENSES
Capital Advanced		3.076	3.529	0.995
TOTAL		159.324	136.054	102.654

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		635.838	498.567	400.652
Other Income		16.887	23.133	11.060
Total Income		652.725	521.700	411.712
Profit/(Loss) Before Tax		29.184	10.969	(3.460)
Provision for Taxation		--	--	--
Profit/(Loss) After Tax		29.184	10.969	(3.460)
Earnings in Foreign Currency :
	Advertising	NA	7.971	1.650
	News Service	NA	6.063	1.739
	Publications	NA	24.044	0.016
Total Earnings		NA	38.078	3.405
Imports :
	Raw Materials	NA	45.117	62.756
	Stores & Spares	NA	132.303	121.964
Total Imports		NA	177.420	184.72
Expenditures :
	Selling and Distribution	0.000	0.000	51.373
	Raw Material Consumed	137.445	101.669	83.092
	Purchases made for re-sale	2.248	2.056	1.608
	Consumption of stores and spares parts	5.965	5.888	4.355
	Operating Expenses	0.000	0.000	59.160
	Employees Remuneration and Benefits	0.000	0.000	125.872
	Administration and other Expenses	0.000	0.000	77.293
	Salaries, Wages, Bonus, etc.	181.591	147.931	0.000
	Managerial Remuneration	0.567	0.436	0.000
	Payment to Auditors	0.520	0.520	0.000
	Interest	0.606	2.827	9.185
	Insurance Expenses	1.358	1.040	0.000
	Depreciation & Amortization	11.747	12.719	9.194
	Other Expenditure	281.494	235.663	0.000
Total Expenditure		623.541	510.749	421.132

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	4.45	2.10	(0.84)
Net Profit Margin (PBT/Sales)	(%)	4.58	2.20	(0.86)
Return on Total Assets (PBT/Total Assets}	(%)	8.80	4.44	(1.72)
Return on Investment (ROI) (PBT/Networth)		0.19	0.09	(0.49)
Debt Equity Ratio (Total Liability/Networth)		1.21	1.00	0.14
Current Ratio (Current Asset/Current Liability)		1.41	1.51	1.33

LOCAL AGENCY FURTHER INFORMATION

Fixed assets:

Ø Furniture and Fixture

Ø Office Equipments

Ø Vehicles

Ø Plant and machinery

Name of the company	Business Standard Limited
Presented By	Vikas Mohan Company Secretary
1) Date and description of instrument creating the change	18^th July,2000 Unattested Memorandum of Hypothecation dted 18^th July,2000. Loan Facility Agreement Dated 18^th July,2000 Demand Promissory Note Dated 18^th july,2000. Were excuted by tge borrower in favour of the Great Eastern Shipping company Limited having its registered office at ocean House, Dr. Annie Besant Road, Worli, Mumbai-400 028 (herein after reffered to as “lender)
2) Amount secured by the charge/amount owing on the securities of charge	Term Loan Facility of Rs. 11.000 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	The moveable assets of the borrower, namely, Cameras, Recorders and other Studio equipments etc. other than such items of specifics movable properities and assets as may be permitted by the lender from time to time to be excluded from the scope of this security and other movables, both present and future, whether now lying or stored in or about or shall hereinafter from time to time during the rcontinuance of the security of these presents be brought into or upon or be stored or be in or about of the borrower’s factories, premises and godownn, the same may be or held by any party to the order or disposition of the borrower or in the course of transit or on high seas or on order of delivery\, however and wheresover in the possession of the borrower and either by way of substitution or addition.
4) Gist of the terms and conditions and extent and operation of the charge.	The borrower agrees to repay to the lender the principal amount with interest @16%p.a.plus interest tax, if any, in instalments. The Loan amount together with interest additional interest costs charges and expenses and all othr monies payable by the company in respect thereof shall inter alia, be secured by a first charge by way of hypothecation of movable assets of the Compn, both present and future. The charge referred to above shall rank par-passu with charges created and/ or to be created by borrower in favour of the Great Eastern Shipping Company Limited (GESCO) and Kotak Mahindra Finance Limited (KMFL) as security for the loan facility of Rs. 11.000 Million Provided to the borrower by GESCO and Rs.22.000 Million Provided to the Borrower by KMFL.
5) Name and Address and description of the person entitled to the charge.	The Great Eastern Shipping Company Limited Registered office Ocean House Dr. Annie Beseant Road, Worli, Mumbai:400 018
6) Date and brief description of instrument modifying the charge	--
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	--

Corporate identity number of the company	L00000DL1999PLC100242
Name of the company	Business Standard Limited
Address of the registered office or of the principal place of business in India of the company	Nehru House 4 Bahadur Shah Zafar Marg, New Delhi:110002, Delhi India
This form is for	Creation of Charge
Type of charge	Hypothecation
Particular of charge holder	L99999MH1985PLC038137 Kotak Mahindra Bank Limited 36-38,NarimanBhavan,227,DNariman Point Mum:21, W.E.F. 29.01.2001 Mumbai:400021, Maharashtra, India Arvind.vasta@kotak.com
Nature of instrument creating charge	--
Date of instrument Creating the charge	20.06.2006
Amount secured by the charge	40.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: BPLR Less 3%. BPLR is 14.50% P.A Term of Repayment: on Demand Margin:25% on Eligible Stocks and Book Debts Security: A First/ Exclusive charge by way of hypothecation over the movable assets of the borrower, both present and future. In Favor of the Bank.
Description of the property charged	--
Particulars of the property charged	All the Movable assets of th borrower present and future including books debts stock of Rawmaterial finished goods, movable plants and machinery etc, As details in second scheduled to th deed of hypothecation dated 20^th june 2006

It is in trade terms with:

· Vibha Publication Private Limited, Delhi

· Sumangal Artech, Delhi

· Abitibi Newsprint, Canada

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.43.15
UK Pound	1	Rs.85.22
Euro	1	Rs.57.63

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		33

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