MIRA INFORM REPORT

Report Date :

26.04.2007

IDENTIFICATION DETAILS

Name :	M M PUBLICATIONS LIMITED
Registered Office :	P. B. No. 226, Erayilkadavu, Kottayam – 686 001, Kerala
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	26.05.1971
Com. Reg. No.:	09-2354
CIN No.: [Company Identification No.]	U22110KL1971PLC002354
TAN No.: [Tax Deduction & Collection Account No.]	TVDM00472D
PAN No.: [Permanent Account No.]	AACCM2082P
Legal Form :	Closely held public limited liability company
Line of Business :	Printing and Publishing Magazines.

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 320000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a 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/ Printing Press :	P. B. No. 226, Erayilkadavu, Kottayam – 686 001, Kerala, India
Tel. No.:	91 – 481 – 2563721/ 22/ 23/ 565403/ 564882/ 564693/ 561192/ 300214/ 302117
FCT :	98460-61403
Fax No.:	91 – 481 – 2564393
E-Mail :	emempeel@sancharnet.in, sanjeevgeorgev@mmp.in
Location :	owned office-cum-printing press

DIRECTORS

Name :	Mr. George Itty Kallumkathara
Designation :	Executive Director
Address :	Kuttuthra House, Darragh Street, Kottayam – 686 001, Kerala
Date of Birth/Age :	19.07.1919
Date of Appointment :	18.07.1972
Name :	Mr. Cherian Kurian
Designation :	Director
Address :	Naduvileparampil House, Puthuppally, Kottayam-686011, Kerala
Date of Birth/Age :	08.02.1930
Date of Appointment :	30.01.1999
Name :	Mr. Kuriyan Ashok
Designation :	Director
Address :	Fairfield Apartments, G D No.12, Benson Cross, Benson Town, Bangalore-560046, Karnataka
Date of Birth/Age :	14.10.1952
Date of Appointment :	31.05.1979
Name :	Mr. K M Mathew
Designation :	Director
Name :	Mr. Mammen Varghese
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Sanjeev Varghese George
Designation :	Company Secretary
Address :	Thekkethalackal House, Velliyampallil, Puthanangady P O Kottayam-686001, Kerala
Date of Birth/Age :	26.04.1960
Date of Appointment :	08.05.1989

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. K. M. Mathew	140
Mr. Mathew Mammen	562
Mr. Mappillai K K Mammen	757
Mr. Mamman George	300
Mr. Philip Soma	750
Mr. Mammen Roy	3498
Mr. K M Mammen	501
Mr. Mappillai Mammem Varun	700
Mr. K M Mammen Mappillai	1912
Mr. Joseph L Sujith	80
Mr. Omana Mammen	1155
Dr. Annamma Mamen	1500
Dr. Thomas Sarah	1473
Ms. Aditi Mammen	699
Mr. Ramani Joseph	375
Mr. Annu Kurian	1934
Ms. Mary Kurian	1516
Ms. Shirin Mammen	755
Ms. Shilpa Mammen	1068
Mr. Rohit Philip	2198
Ms. Prema M. Mathew	1222
Mr. Zachariah Kuriayan	04
Mr. Annamma Varghese	202
Ms. Divya Philip	575
Mr. Aswathy Varghese	1400
Ms. Bina Mathew	1500
Mr. Thangam Mammen	392
Ms. Sarah Kuriyan	700
Mr. Chinna Philip	500
Mr. Adith P Mammen	950
Mr. Rohan M Mammen	1000
Ms. Reenu Zachariah	700
Ms. Kavitha Philip	2150
Ms. Meera Philip	375
Ms. Ammu Mathew	1962
Mr. K M Mammen and Ms. Ambika Mammen	1412
Ms. Meera Mammen	512
Mr. Rohan Kurian	426
Mr. K Zachariah Kuriyan	416
Ms. Geetha M Mappillai	436
Mr. Mammen Eapen	625
Ms. Kavitha Philip	625
Mr. Ramani Joseph	312
Mr. Rebecca Joseph	1400
Mr. Anand M Katakkam	1400
Ms. Anna Philip	1400
Ms. Maya Kurian	1400
Mr. Kiran Kattukaran	2925
Mr. M A Mathew	86
Mr. George Kuruvilla	57
Ms. Latha Mathew	85
Mr. Kurian Zachariah	76
Mr. ashok Kuriyan	57
Ms. Shona Bhojnagarwala	57
Mr. Preminda Jacob	57
Mr, Susan Abraham	57
Ms. Anita Mani	57
Mr. Oommen Mammen	57
Ms. Maria Mammen	57
Ms. Anna Raphael	57
Ms. Usha George	57
Mr. George Mammen	57
Mr. Kiran Kuriyan	10
Ms. Meera Ninan	80
Ms. Geeta Zachariah	80
Mr. Sunil Thomas	81
Ms. Anna T Chacko	81

As on 31.03.2006

Names of Shareholders	Percentage of Holding
Directors or their relatives	7.15
Other top 50 shareholders	92.85
Total	100.00

BUSINESS DETAILS

Line of Business :

Printing and Publishing Magazines.

Products :

Product Description	ITC Code
Balarama	490290.02
Vanitha	490290.02
Vanitahindi	--

Terms :

Selling :

Cash or Credit (30 days) terms

Purchasing :

L/C, Cash or Credit (30 days) terms

GENERAL INFORMATION

No. of Employees :

350

Bankers :

South India Bank Limited, Kottayam, Kerala, India

Facilities :

Secured Loans (Rs. In millions):

(As on 31.03.2005)

From Banks :
Cash Credit from The South Indian Bank Limited, Kottayam on hypothecation of stock in trade and book debts	33.702
Term loan from the South Indian Bank Limited, Kottayam on hypothecation of machinery and building	15.236
Total	48.938

Unsecured Loans :

Fixed deposits from :
Share holders	0.360
Others	6.355
Directors	0.500
Inter Corporate Deposit	0.330
Total	7.545

Banking Relations :	Satisfactory
Auditors :
Name :	Zachariah & Zachariah Chartered Accountants
Address :	Sazmera, P. B. No. 204, Kottayam – 686 001, Kerala, India
Tel. No.:	91-481-2563043 / 2583552
Fax No.:	91-481-2300736
E-Mail :	zacandzac@vsnl.com

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.10/- each	Rs.2.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.10/- each	Rs.0.500 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		0.500	0.500	0.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		79.995	77.133	67.033
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		80.495	77.633	67.533
LOAN FUNDS
1] Secured Loans		30.252	48.938	46.492
2] Unsecured Loans		6.175	7.545	9.777
TOTAL BORROWING		36.427	56.483	56.269
DEFERRED TAX LIABILITIES		6.087	7.321	7.808
QUASI CAPITAL AGENTS DEPOSITS		59.556	52.539	46.135
TOTAL		182.565	193.976	177.745
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		77.588	86.193	91.336
Capital work-in-progress		3.686	0.000	0.000
INVESTMENT		2.810	11.810	1.778
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	56.985	42.435	46.338
	Sundry Debtors	46.491	46.143	43.107
	Cash & Bank Balances	14.155	19.637	28.016
	Other Current Assets	6.060	5.494	0.000
	Loans & Advances	30.682	20.839	15.530
Total Current Assets		154.373	134.548	132.991
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	38.712	29.373	37.997
	Provisions	17.180	9.202	10.365
Total Current Liabilities		55.892	38.575	48.362
Net Current Assets		98.481	95.973	84.629
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		182.565	193.976	179.521

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		453.230	420.989	364.378
Other Income		0.895	0.819
Total Income		454.126	421.809	364.378
Profit/(Loss) Before Tax		9.452	16.706	16.303
Provision for Taxation		0.000	0.000	5.469
Profit/(Loss) After Tax		9.452	16.706	10.834
Earnings in Foreign Currency :
	Other Earnings	NA	1.797	1.399
Total Earnings		NA	1.797	1.399
Imports :
	Raw Materials	NA	110.657	99.676
	Stores & Spares	NA	NA	7.673
	Capital Goods	NA	NA	0.351
	Others	NA	NA	0.006
Total Imports		NA	110.657	107.706
Expenditures :
	Raw Material Consumed	175.764	152.021	NA
	Consumption of stores and spares parts	38.687	37.173	NA
	Increase/(Decrease) in Finished Goods	(0.566)	(0.535)	NA
	Salaries, Wages, Bonus, etc.	36.780	33.536	NA
	Payment to Auditors	0.230	0.230	NA
	Interest	7.590	6.244	NA
	Insurance Expenses	1.207	0.853	NA
	Power & Fuel	7.383	7.588	NA
	Depreciation & Amortization	12.134	13.404	14.147
	Other Expenditure	165.464	154.856	319.782
Total Expenditure		444.674	405.103	333.929

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	2.08	3.96	2.97
Net Profit Margin (PBT/Sales)	(%)	2.08	3.96	4.47
Return on Total Assets (PBT/Total Assets}	(%)	4.07	7.57	7.27
Return on Investment (ROI) (PBT/Networth)		0.12	0.21	0.24
Debt Equity Ratio (Total Liability/Networth)		1.15	1.22	1.55
Current Ratio (Current Asset/Current Liability)		2.76	3.49	2.75

LOCAL AGENCY FURTHER INFORMATION

Form 8 Particular for creation or modification of charges

Corporation identity number or foreign company registrations number of the company	U22110KL1971PLC002354
Name of the company	M M PUBLICATIONS LIMITED
Address	P. B. No. 226, Erayilkadavu, Kottayam – 686 001, Kerala, India
This Form is for	Modification of acharge
Type of Charges	Immovable property Movable property
Particular of the charge holder	The South Indian Bank Limited P. B. No.124, 275/IX, Catholic Centre, Juncion Kottayam-686001, Kerala
Nature or description of the instrument creating charge	Agreement of hypothecation Letter confirming extension of EM
Date of the instrument creating charge	29.01.2007
Amount Secure by the charge	Rs.222.500 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of interest: CCOL : BPLR – 3.50% (10% per annum with monthly rests) FSL : BPLR +TR-5% (9% p.a. floating with monthly rests with reset clause after 3 years for spread) FCDL : LIBOR 6 months + 1.50% Terms of repayment : CCOL : 12 months FSL 84 months Margin : CCOl – 25%/ 50% respectively FSL – 25% Import LC : 25% Extent and operation of the charge : Hypothecation of offset printing/ Cylinder press, rotary printing machine of Harris model M1000B Sl. No. G12352 and all sorts of printing material, RM, SFG, FG stores, spares, WIP etc. Extension of EM of lease hold right in land admeasuring 1 Hectare, 10 Ares, 24 Sq.mts. situated in Sy. No.6/1, 6/2 (Re.Sy.No.10) in block No.77 of Muttambalam Village, Kottayam Taluk, together with all buildings present and future.
Modification charge Charge identification number of the charge to be modified	90016106
Date of latest modification prior to the present modification	24.12.1993
Particulars of the Property charged	Hypothecation of offset printing/Cylinder press, rotary printing machine of Harris model M1000B Sl. No.G12352 and all sorts of printing material, RM, SFG, FG stores, spares, WIP etc. Extension of EM of lease hold right in land admeasuring 1 Hectare, 10 Ares, 24 Sq.mts. situated in Sy. No.6/1, 6/2 (Re.Sy.No.10) in block No.77 of Muttambalam Village, Kottayam Taluk, together with all buildings present and future.
Particulars of the present modification	The limits has been enhanced andmodified as under : CCOL : Rs.100.000 millions (FCDL : Rs.50.000 millions- sub limit within the CCOL) FSL : Rs.112.500 millions DC : Rs.7.500 millions Import LC : Rs.2.500 millions Total : Rs.222.500 millions

Name of the company	M M PUBLICATIONS LIMITED
Presented By	Mr, V Sanjeev George, Secretary
1) Date and description of instrument creating the change	Hypothecation deed dated 10.09.1980.
2) Amount secured by the charge/amount owing on the securities of charge	Rs.1.100 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	All the rights of book debts which expression shall include all realizable debts due to borrower, arising out of the usual business dealings, appearing in the borrowers books of account in whatever form belonging to rhe borrower which now or hereinafter from time to time during the security shall be brought in or be in or appearing in theborrower’s books of account.
4) Gist of the terms and conditions and extent and operation of the charge.	To pay on demand the sum of Rs.0.100 millions the bank or their order with interest at 15% per annum from this date till the dated of payment with quarterly rests. That the hypothecated book debts, accruing from time to time, Machineries and there movables and stock shall be held as the bank’s exclusive security and the borrower will not create any mortgage, charge, lien or encumbrance, affecting the same or any part thereof nor do anything which would prejudice this security in any manner and the borrower shall not compromise or compound hypothecated book debts in the ordinary course of the borrower business other than remitting such amounts to the bank. The borrower shall make and furnish to the bank the statement and returns of the hypothecated book debts outstanding in borrower’s books of account and full description thereof and produce such evidence in support thereof at the end of time require and shall maintain in favour of the bank a margin of 25% between the total dues by way of book debts from time to time and balance due to the bank for the time being.
5) Name and Address and description of the person entitled to the charge.	South Indian Bank Limited, Kottayam
6) Date and brief description of instrument modifying the charge	Instrument of hypothecation dated 20.02.2001 for CCOL from Rs.45.000 millions to 55.000 millions. Memorandum of extension of EM dated 20.02.2001 Rate of interest reduced from 14.28% to 14%. The charges were modified on 20.02.2001 by a memorandum of extension of EM dated 20.02.2001 and the amount enhanced from Rs.45.000 millions to Rs.55.000 millions. In addition to the hypothecated stock, stores and spares, machineries and fixed assets, the lease hold property as per the lease deed No.3052/98 dated 08.12.1998 having a total extent of on 1 hector, 10acres, 24 Sq. meters (2.72 acres) of the land comprised within the boundaries, was deposited with the bank by a memorandum of deosit of lease deed dated 07.02.2000 have been extended to the present enhancement limit, by the memorandum of extension of EM on 20.02.2001 and by an agreement of hypothecation on 20.02.2001.
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.	NA

Company’s fixed assets include Land, Machinery, Office Equipments, Vehicles, Library Books. Electric Fittings, Photographic Equipments, Computers, Furniture and Fixtures, Office Building and Factory Building

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.40.78
UK Pound	1	Rs.81.79
Euro	1	Rs.55.66

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		55

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