MIRA INFORM REPORT

Report Date :

26.12.2006

IDENTIFICATION DETAILS

Name :	SAMTEL COLOR LIMITED
Registered Office :	52, Community Centre, New Friends Colony, New Delhi – 110 065
Country :	India
Financials (as on) :	31/03/2006
Date of Incorporation :	15.05.1986
Com. Reg. No.:	55-24222
CIN No.: [Company Identification No.]	L51909DL1986PLC024222
TAN No.: (Tax Deduction & Collection Account No.)	DELS08933B
Legal Form :	Subject is a public limited liability company. The company’s shares are listed on the Stock Exchanges
Line of Business :	Manufacturers and Marketers of Picture Tube for Colour Television.

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 11000000
Status :	Good
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an old established company having satisfactory track. Trade relations are reported as fair. Payments are always correct and as per commitments. Financial position of the company is satisfactory. The company can be considered good for any normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	52, Community Centre, New Friends Colony, New Delhi – 110 065, India
Tel. No.:	91-11-26842791/26845410/26832886/ 26832151
Fax No.:	91-11-26837534
E-Mail :	sandeeptandan@samtelgroup.com
Website :	http://www.samtelgroup.com http://www.samtelmonitors.com
Administrative Office :	50-51, Community Centre, New Friends Colony, New Delhi – 110 065, India
Manufacturing Unit:	Colour Picture Tube Works Village Chhaprula, Tehsil Dadri Bullandshahar Road, District Ghaziabad (Now in District Goutam Budh Nagar), Uttar Pradesh, India Tel. 91-120-2674512 /13/14/15/16/17/18 Fax. 91-120-2674504 Plot No. 2, Village Chhaprula, Bisrakh Road, Greater Noida Industrial Development Area, District Goutam Budh Nagar – 201 009, Uttar Pradesh, India Village Naya Nohra, Kota – Baran Road, Kota, Rajasthan, India Colour Electron Gun Division C-1/1, 2, 3, Sector - XXII, Industrial Area, Meerut Road, District Ghaziabad - 201003, Uttar Pradesh, India Tel. 91-120-2788202 to 2788208 Fax. 91-120-2788200 Black and White Gun and Deflection Yoke Plot No. 6, Industrial Area, Sector -2, Parwanoo - 173 220, District Solan Himachal Pradesh, India Tel. 91-1792-233411/684/233050/233556 Fax. 91-1792-233680

DIRECTORS

Name :	Mr. Satish K. Kaura
Designation :	Chairman & Managing Director
Age:	60years
Qualification:	M.Tech., Carleton University, Canada
Experience:	38 years
Date of Joining:	27^th February, 1989
Previous Employment:	Samtel India Limited – Managing Director
Name :	Mr. Arun Bharat Ram
Designation :	Director
Name :	Mr. Subodh Bhargava
Designation :	Director
Name :	Mr. V. Narayanan
Designation :	Director
Name :	Mr. S. P. Gugnani
Designation :	Director
Name :	Mr. Amal Ganguli
Designation :	Director
Name :	Mr. Shailendra Swarup
Designation :	Director
Name :	Mr. N. D. Auddy
Designation :	Director [IFCI Nominee]
Name :	Mr. R. Krishnakumar
Designation :	Director [ICICI Nominee]
Name :	Mr. R. K. Srivastava
Designation :	(LICI Nominee Director)
Name :	Mrs. Renuka Ramnath
Designation :	Director (ICICI Venture Fund Management Company Limited, Nominee)

KEY EXECUTIVES

Name :	Dr. Arun Mohan Bansal
Designation :	Company Secretary
Name :	Mr. S. R. Tilwali
Designation :	Vice President – Finance
Age:	57 years
Qualification:	B.Com., FCA, ACS
Experience:	32 years
Date of Joining:	15^th September, 1989
Previous Employment:	Shriram Fibres Limited – DGM & Company Sec.
Name :	Mr. J. C. Jhuraney
Designation :	Senior Vice-President [Human Resources]
Age:	56 years
Qualification:	M.A. PGDPM
Experience:	35 years
Date of Joining:	08.05.2001
Previous Employment:	JCT Electronics Limited – Vice – President – Personnel and HRD
Name :	Mr. S. Kakria
Designation :	President (Operations)
Age:	48 years
Qualification:	B. Sc. M.B.A.
Experience:	26 years
Date of Joining:	01.01.1987
Previous Employment:	Samtel India Limited – Commercial Manager
Name :	Mr. N. K. Sehgal
Designation :	Vice President (Projects)
Age:	57 years
Qualification:	B. Sc. Engg. (Mech.)
Experience:	34 years
Date of Joining:	01.01.1987
Previous Employment:	Teletube Electronics Limited – Dy. General Manager
Name :	Mr. S. J. Rao
Designation :	Vice President (Six Sigma)
Age:	58 years
Qualification:	M. Sc. (Chem.)
Experience:	34 years
Date of Joining:	01.07.1988
Previous Employment:	Samtel India Limited – General Manager (O)
Name :	Mr. R. Kakkar
Designation :	Vice President (Business Planning)
Age:	45 years
Qualification:	B. Tech. PGDM
Experience:	21 years
Date of Joining:	24.06.2000
Previous Employment:	ICI (India) Limited – Business Manager
Name :	Mr. A. Ganguly
Designation :	Vice President
Age:	48 years
Qualification:	B. Com. (H)
Experience:	25 years
Date of Joining:	01.11.2004
Previous Employment:	Samtel Color Limited – Marketing Consultant

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Directors, Promoters and Family Members	24033447	59.16
FIIs	2113536	5.21
Mutual Funds	565163	1.39
Financial Instructions/ Banks	118927	0.29
NRIs	5209722	12.82
Corporates	1708638	4.21
Individuals	6872521	16.92
Total	40621954	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Marketers of Picture Tube for Colour Television.

Products :

Item Code No.	Product Description
8540.11	Colour TV Picture Tube
8540.90	Electron Gun for Colour Picture Tube
8540.91	Deflection Yoke for Colour Picture Tube

Imports from :

Europe and Far East

Terms :

Purchasing :

L/C, D/A and D/P terms

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Colour Picture Tubes	Nos.	6300000	5425068
Color Electron Guns	Nos.	7000000	6142309
Black and White Electron Guns	Nos.	6300000	39851
Deflection Yoke	Nos.	6000000	5030875

GENERAL INFORMATION

Bankers :

· Punjab National Bank, ECE House, K. G. Marg, New Delhi, India

· Standard Chartered Grindlays Bank, Parliament Street, New Delhi, India

· Standard Chartered Grindlays Bank Limited, H Block, Connaught Circus, New Delhi, India

· ICICI Bank Limited, Connaught Circus, New Delhi, India

· Canara Bank, Industrial Finance Branch, New Delhi, India

· State Bank of India

· UTI Bank Limited

· Export-Import Bank of India

· ABN Amro Bank

Facilities :

	As on 31.03.2006 [Rs. In Millions]
SECURED LOANS
From Banks
Cash Credit Accounts	487.188
Rupee Loan	3047.487
Foreign Currency Loans	611.287
Car Loan	18.588

Banking Relations :	Satisfactory
Auditors :	Price Waterhouse Chartered Accountants New Delhi
Associates :	· Samcor Glass Limited · Samtel India Limited · Teletube Electronics Limited · Samtel Electron Devices, GmbH, Germany · International Electron Devices Limited · Roxy Investment Private Limited · Lenient Consultants Private Limited · CEA Consultants Private Limited · SW Consultants Private Limited · Tish Consultants Private Limited · Kaura Properties Private Limited · Kaura Investment Private Limited · Swaka Consultants Private Limited · Punswat Consultants Private Limited · Dolsun Containers Private Limited
Subsidiaries	· Paramount Capfin Lease Private Limited 52, Community Centre, New Friends Colony, New Delhi – 110 065 · Blue Bell Trade Links Private Limited 52, Community Centre, New Friends Colony, New Delhi – 110 065

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
74990000	Equity Shares	Rs. 10/-	Rs. 749.900 millions
2501000	Redeemable Preference Shares	Rs. 100/-	Rs. 250.100 millions
	Total		Rs. 1000.000 millions

Issued Capital :

No. of Shares	Type	Value	Amount
46585125	Equity Shares	Rs. 10/-	Rs. 465.851 millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
46579125	Equity Shares	Rs. 10/-	Rs. 465.791 millions
Less:	Forfeited equity shares pending reissue		Rs. 0.030 million
	Total		Rs. 465.821 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	465.821	406.250	405.437
2] Advance Subscription	39.680	26.167	0.000
3] Reserves & Surplus	2344.132	1901.864	1527.700
NETWORTH	2849.633	2334.281	1933.137
LOAN FUNDS
1] Secured Loans	4301.494	3598.501	2319.922
2] Unsecured Loans	100.000	0.000	89.138
3) Deferred Payment Liability	32.736	56.037	104.072
TOTAL BORROWING	4434.230	3654.538	2513.132
DEFERRED TAX LIABILITIES	973.544	995.272	859.200
TOTAL	8257.407	6984.091	5305.469
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	5236.945	5426.758	5808.746
Capital work-in-progress	2404.342	1290.430	117.242
Preoperative expenses	931.125	194.019	40.238
INVESTMENTS	330.099	330.099	331.318
CURRENT ASSETS, LOANS & ADVANCES
Inventories	1493.189	1092.563	919.800
Sundry Debtors	376.671	488.319	542.580
Cash & Bank Balances	37.614	25.121	74.555
Loans & Advances	618.543	624.002	344.768
Total Current Assets	2526.017	2230.005	1881.703
Less: CURRENT LIABILITIES & PROVISIONS
Current Liabilities	3063.064	2270.679	2729.906
Provisions	108.057	216.541	143.872
Total Current Liabilities	3171.121	2487.220	2873.778
Net Current Assets	[645.104]	(257.215)	(992.075)
TOTAL	8257.407	6984.091	5305.469

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	7827.921	9638.157	8427.480
Profit/(Loss) Before Tax	[5.635]	909.473	151.674
Provision for Taxation	2.700	264.191	26.700
Profit/(Loss) After Tax	[8.335]	645.282	124.974
Export Value	1579.100	2325.280	1458.200
Import Value	3700.900	3096.053	2057.784
Total Expenditure	7833.556	8775.089	8275.806

QUARTERLY RESULTS

PARTICULARS	30.06.2006 [1^st Qtr.]	30.09.2006 [2^nd Qtr.]
Sales Turnover	2049.500	3006.500
Other Income	1.200	3.300
Total Income	2050.700	3009.800
Total Expenditure	1836.900	2680.400
Operating Profit	213.800	329.400
Interest	92.900	167.600
Gross Profit	120.900	161.800
Depreciation	123.300	158.500
Tax	[05.100]	[1.200]
Reported PAT	[02.700]	[6.000]

NOTES:

2006-06 Quarter 1

1. The above results were taken on record at the meeting of Board of Directors held on 21st July, 2006. 2. The Company is engaged in the business of TV picture tubes & parts and there are no separate reportable segments as per AS - 17 on Segment reporting. 3. Pursuant to the Samtel Employee Stock Option Scheme 2001, the Company has issued and allotted 20,650 equity shares to its eligible employees on 17^th May, 2006. 4. The number of investors' complaints during the quarter, resolved and pending are - Number of complaints pending at beg nosing of the quat-der :Nil - Total number of complaints received during the quarter : 46 - Total number of complaints disposed of during the quarter : 46 - Number of complaints pending at close of the quarter : Nil 5. Response to Auditors' qualification in the annual audited financial statements as at March 31, 2006. a) In respect of an old receivable of Rs. 17.600 millions as on 31st March, 2006, the Company has during the current quarter received an amount of Rs. 5 millions. The balance outstanding are being renegotiated with the customer for re-schedulement. The management considers this debt to be fully recoverable. b) In respect of managerial remuneration amounting to Rs. 5.587 millions included in the staff cost during the year ended on 31^st March, 2006, the Company has filed the necessary application on 31st May, 2006 with the Ministry of Company Affairs seeking their approval. 6. In view of AS -15 (revised 2005) 'Employee Benefits' issued by Institute of Chartered Accountant of India which is applicable w.e.f. April 1,2006, the adjustments on account of transitional provision will be dealt in the general reserve at the year end and additional charge on account of employee benefits amounting to Rs. 1.200 millions has been provided for in the current quarter. 7. The Company has commenced commercial production of 29' Super Flat Color Picture Tubes and Electron Guns for 29' Super Flat Color Picture Tubes on 2nd July 2006. 8. Previous year / period figures have been regrouped / recast, wherever necessary, to conform to current period's classification.

2006-09 Quarter 2

Expenditure Includes (Increase)/Decrease in stock in Trade Rs (154.20) million Consumption of Raw Material Rs 2218.60 million Staff Cost Rs 209.00 million Other expenditure Rs 407.00 million Tax Includes Provision for Deferred Tax Rs 8.10 million Fringe Benefit Tax Rs 1.20 million EPS is Basic Status of Investor Complaints for the quarter ended September 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 63 Complaints disposed off during the quarter 63 Complaints unresolved at the end of the quarter Nil 1. The above results were taken on record at the meeting of Board of Directors held on October 28, 2006. 2. The Company is engaged in the business of TV picture tubes & parts and there are no separate reportable segments as per AS - 17 on Segment reporting. 3. Response to Auditors' qualification in the annual audited financial statements as at March 31, 2006. a. In respect of an old receivable of Rs 17.60 million as on March 31, 2006, the Company has recovered an amount of Rs 7.50 million till September 30, 2006. The balance outstanding are being renegotiated with the customer for re-schedulement. The management considers this debt to be fully recoverable. b. In respect of managerial remuneration amounting to Rs 5.587 million included in the staff cost during the year ended on March 31, 2006, the Company has filed the necessary application on May 31, 2006 with the Ministry of Company Affairs seeking their approval. 4. Response to Auditors' comments in the report on their limited review of the unaudited financial results for this quarter:- In the managements' view, the customs duty / sales tax aggregating to Rs 7.90 million in respect of materials to be utilised in the company's export oriented unit (EOU) is recoverable under the provisions of the related legislation. 5. In view of AS - 15 (revised 2005) 'Employee Benefits' issued by Institute of Chartered Accountant of India which is applicable w.e.f. April 01, 2006, the adjustments on account of transitional provision will be dealt in the general reserve at the year end and additional charge on account of employee benefits amounting to Rs 1.50 million has been provided for in the current quarter. 6. On February 13, 2005 the company has issued 22,00,000 warrants having optional right of conversion into shares to Promoter companies namely CEA Consultants Private Limited & Samtel Display System Private Limited (formerly known as Roxy Investment Private Limited), against payment of an advance subscription amount of Rs 39.680 million. As the above allottees of warrants have not exercised the right for conversion, the advance subscription amount of Rs 39.68 million has been forfeited and transferred to Capital Reserve. 7. During the quarter, new production lines for manufacturing of 29' Super Flat Color Picture Tubes ( Line # 4) and 21' Super Flat Color Picture Tubes ( Line #5) have been commissioned on July 02, 2006 and July 31, 2006 respectively. The new lines have incurred a loss (PBDT) aggregating to Rs 106.00 million on Net Sales / Income from Operations of Rs 764.20 million during the quarter. 8. Previous year/period figures have been regrouped/recast, wherever necessary, to conform to current period's classification.

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt Equity Ratio	1.58	1.45	1.60
Long Term Debt Equity Ratio	1.44	1.39	1.51
Current Ratio	0.61	0.59	0.60
TURNOVER RATIOS
Fixed Assets	0.99	1.20	1.10
Inventory	6.74	10.55	9.49
Debtors	20.15	20.03	14.98
Interest Cover Ratio	0.99	3.54	1.34
Operating Profit Margin (%)	9.98	17.03	11.62
Profit Before Interest and Tax Margin (%)	4.15	12.28	6.44
Cash Profit Margin (%)	5.94	11.00	6.54
Adjusted Net Profit Margin (%)	0.11	6.25	1.36
Return on Capital Employed (%)	5.48	24.36	11.96
Return on Net Worth (%)	0.39	30.43	6.56

STOCK PRICES

Face Value	Rs.10/-
High	Rs.35.55/-
Low	Rs.35.00/-

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Subject was incorporated on 15^th May 1986 at New Delhi in India having Company Registration Number 24222.

Subject was promoted by Mr. S. K. Kaura, Teletube Electronics and Samtel (India) and is managed by the Chairman & Managing Director Mr. S. K. Kaura.

The company is engaged in as Manufacturers of Colour Picture Tubes. The company came out with a public issue aggregating Rs. 75.000 millions in April, 1988, to part finance the setting up of a plant for the manufacture of 0.5 million colour picture tubes at the total cost of Rs. 757.100 millions.

In November, 1995 the company started a project for installing line-2 for producing 1.200 million medium-sized picture tubes at Ghaziabad, Uttar Pradesh, at an estimated cost of Rs. 1550.000 millions. Its technical collaboration with Mitsubishi Electric Corporation, Japan expired in January, 1995.

The company was awarded the ISO 9002 Certification in September, 1993. As a part of its backward integration, the company promoted Samcor Glass to manufacture glass shells at Kota, Rajasthan.

During 1999-2000, the company merged Samtel Electron Devices with itself effective from April 1, 1997. It had also made 100% investment in Paramount Capfin Lease Private Limited and Blue Bell Trade Link Private Limited to make a subsidiary company.

During 2000-01, the company had decided to set up third production line with a capacity of 2.200 million tubes per annum to manufacture 15” Colour Display Tubes for computer monitors and 21” Super Flat TV Tubes. The project was estimated to cost Rs. 3400.000 millions and was expected to be commissioned by June, 2002. The project is being financed from internal accruals and debt. The civil work for the project has already begun in March, 2001.

Along with IIT, Kanpur the company is in process of developing Organics Light emitting Diodes and is also in the process of developing Plasma Display Panels.

During 2001-2002, the company commenced third production unit with a capacity of 2.2 million tubes p.a. to manufacture 15' Colour Display Tubes for computer monitors and 21' Super Flat TV tubes. at a cost of Rs 3400 millions. The project is being financed from internal accruals and debt. 

In 2004-05, The company has invested in two more lines namely line 4 and line 5. Line 4, located at Ghaziabad (UP), is being set-up at a cost of Rs.1210 millions, which will have manufacturing capabilities for large CPTs, including 29' super-flat CPTs. It will have a capacity of 1.5 million CPTs per annum. The line is undergoing pilot runs and is expected to start commerical production from October 2005. Line 5, Which will manufacture mid-size CPTs, is being set-up with an investment of Rs.1620 millions. With a capacity of 2.5 million CPTs, this line is being established in Kota (Rajasthan). The process of erecting machinery and equipment has begun and the start production will be commenced by 4th Quarter of 2005-06. 

During 2004-05 the company has increased its installed capacity of colour picture tubes by 1,000,000 Nos, color electron guns 1,000,000 Nos and Deflection Yokes by 600000 Nos. With this expansion,the total installed capacity of colour pictures tubes, color electron guns and Deflection Yokes has increased upto 6,300,000 Nos., 7,000,000 Nos. and 6,000,000 respectively.

OPERATIONS 

The domestic market for Color Picture Tubes (CPT) grew from approx. 10 million tubes in 2004-05 to approx 10.6 million tubes in 2005-06. The Company's production increased from 5.32 million color picture tubes in 04-05 to 5.52 million color picture tubes in 05-06. The sales volume during the year under report was marginally higher at 5.52 million CPTs against 5.29 million achieved in the previous year. 

In the international market, CPT prices during the 2005-06 dropped at a steeper rate of 18-20% in various product groups against normal drops of 6-8%. The prices in the domestic market also fall in line with them adversely affecting profitability during the year. 

In its endeavor to become a strong global player in the CPT business, the Company continues to benchmark and upgrade its key operating parameters and business practices to world standards. It is making focused efforts through TOM & Six Sigma initiative for continuous improvements in product and process quality. 

Strategic initiatives in the form of value engineering, effective negotiation and alternate sourcing are being made to continuously drive down raw material costs. As the tube price dropped steeply during the year, the company has very aggressively driven the above initiatives to reduce Bill of material (BOM) costs also. By March,06 it has been in a position to reduce and realign its BOM to Selling price ratio to end 2004-05 levels. 

Details of Samtel Color's strategy and operations are discussed in the section titled 'Management Discussion and Analysis'. 

EXPORTS 

Samtel Color's CPT exports were at 1.67 million tubes in 2005-06 against 1.7 million tubes in 2004-05. In addition to laying emphasis on promoting exports by establishing and developing strategic long-term relationships with large overseas customers, the company is also expending its presence in newer markets. 

OUTLOOK 

The Indian economy continues to be on a sustained higher economic growth path and they, therefore, expect the domestic TV market to remain buoyant in the coming year. Demand for 21' full flat TV's continues to show high growth in the domestic market. The company is the largest manufacturer of these tubes in the country and expects to benefit from this growing demand in 06-07. Sample of 29' tubes under manufacture in its new line IV are under approval with major domestic customers and the company expects volumes to built up in the coming quarters. This is expected to help the company further improve its market share in the domestic market. Exports are expected to grow further due to increased availability of tubes from its new line IV & V in 06-07. 

NEW PROJECTS 

There has been a delay in starting commercial production of 29' tubes in line IV due to some equipment stabilization related issue. The same are being resolved and the line is expected to go into commercial production by the end of this quarter. Tubes produced from this line are under approval with leading domestic customers & they expect volume to pick-up in the coming months. Line-V for manufacturing of medium size tubes at Kota -Rajasthan, is also under trial runs & is expected to start commercial production in coming months. Sales of tubes from these lines are expected to help improve operation during 06-07 and beyond. 

The Company’s fixed assets of important value include Freehold Land, Leasehold Land, Factory Building, Non Factory Building, Plant & Machinery, Furniture, Fixtures & Office Equipment and Vehicles.

About Group

In one such action, a small fire lit in 1974, gave birth to the Samtel Group. Over the years, the have grown from a small, single unit to become the largest Indian integrated manufacturer of a wide range of display devices like Colour and B&W TV picture tubes, tubes for avionics, medical and industrial applications, glass parts for picture tubes, components for tubes like deflection yokes and engineering services. Nine world-class factories and a family of over 4500 motivated people have kept their spirit of leadership alive. A spirit that has helped us to capture and sustain the highest market share in all their endeavors and thus achieve a turnover of approximately US $ 340 million per annum.

In a quest for excellence in all their fields of activity, the partnered with world leaders like Corning Incorporated, USA, Samsung Corning, Korea and Mitsubishi Electric, Japan. Long before globalization became a corporate buzzword, the set up world-class factories and systems, which allowed us to compete successfully. Long before India took its first tentative steps towards liberalization, they were exporting their products to distant shores. Over the years, the have built strong alliances with their global partners, customers and suppliers and having done so, become known for the quality of their products and services in the international arena.

With an eye on future challenges, the have taken many initiatives to build their knowledge infrastructure. Like, setting up their own tube development group with many competent engineers and a dedicated pilot line to develop products and processes for the future. Like, their projects and equipment group, which excels in creating state of the art, cost effective equipment and production systems. Like, their laboratory to develop plasma display panels - which are today at the cutting edge of display technology. Like their own "Samtel Centre for Display Technology" (SCDT) at the "Indian Institute of Technology", Kanpur for developing Organic Light Emitting Diodes (OLEDs) and other generic technologies.

As a result of their efforts, the at Samtel, have been able to register many patents for developments in video display technology. Notwithstanding this, the are also highly focused on the preservation of a green environment for future generations, by setting up extensive environment protection systems at their factories.

A quest for excellence in all their fields of activity has been one of their primary objectives at Samtel. This unquenchable thirst has resulted in quality movements in various forms, like their Six Sigma Movement, becoming a part of their life. To provide value to their customers, the manufacture all the key components for their Cathode Ray Tubes theirselves and also deploy their "Quality Requirement Specifications" in their processes. This commitment to maintaining quality in every sphere that determines their existence, has helped them in their journey on the road to success.

At Samtel, customer focus took seed during the early years by existing in the minds of all employees and living through their actions. This resulted in the creation of a pioneering spirit, which placed us at the cutting edge of technological relevance through the launching of new products repeatedly over time, thus leading to the creation of a wide product range. By continuous expansion of their factories, the created an ability to maintain regular and timely supplies to their customers and won for theirselves the status of dependable and reliable suppliers. This focus on providing value, with the full support of their suppliers, converted customers into partners, journeying together on the road to progress.

Samtel has been built with the continuous and total commitment of all its members. Their individual sense of purpose has resulted in an enthusiastic collective urge to create a world-class organization. This was achieved by creating a culture of openness and trust, by being transparent with others, by feeling empowered and taking charge of one's actions, by seeking knowledge from wherever it was available, by taking calculated risks, by learning from mistakes and still not losing one's enthusiasm or sight of the goal.

As each day floats away in the mists of time, a new tomorrow is not far away. What the have achieved so far is only a foundation for their tomorrow. With each new dawn come fresh challenges. In the years ahead, success will be based on their ability to create and harness knowledge efficiently, for the benefit of all mankind. At Samtel, new paradigms are an accepted fact of life. In everything that the do today, the have their sights set on the future.

Press Releases

Samtel FY2005 PAT up 416% to Rs. 645 million, EPS at Rs. 12.93

Line 4 commissioning on plan, commercial production to commence in Q3FY2006

Improvement in efficiencies and productivity ensure earnings are protected and margin performance outlook going forward remains positive

Outlook for FY2006 is strong- volume growth and margin improvement to drive performance

New Delhi, May 9, 2005: Samtel Color Limited (Samtel), the largest integrated manufacturer of Colour Picture Tube (CPT) for television sets in India, today announced its results for FY2005 (audited) and Q4 FY2005.

Commenting on the performance for Q4 FY2005, Mr. Satish Kaura, Chairman and Managing Director, Samtel Color Limited, said:

“The are looking at the future with confidence and optimism. Their business performance in both local and global markets remained strong throughout the year. While the maintained their leadership share in the domestic markets, the achieved 59% volume growth in international markets.

The have transformed their cost and productivity structures to remain as one of the lowest cost CPT manufacturers that can maintain and even grow its margins in a dynamic price environment.

Their expansions are being implemented on plan and Line 4 is expected to commence its contribution sometime mid-way this fiscal, while Line 5 will commence contribution by the end of the current fiscal year.

The have very strong engineering capabilities to shadow emerging dynamics in the CPT and display sector and therefore their product range is always likely to map contemporary market trends and opportunities.

With a competitive cost structure, wide range of products and increasing customer endorsement, the believe that the will be able to mitigate any challenges and grow their business going forward.”

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.44.23
UK Pound	1	Rs.86.91
Euro	1	Rs.58.26

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		49

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		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