MIRA INFORM REPORT

Report Date :

08.01.2007

IDENTIFICATION DETAILS

Name :	THE PRINTERS (MYSORE) PRIVATE LIMITED
Registered Office :	Plot Nos. 7-12, Kumbalgodu Industrial Area, Mysore Road, Bangalore-560 074, Karnataka, India.
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	04.02.1948
Com. Reg. No.:	08-521
CIN No.: [Company Identification No.]	U22110KA1948PTC000521
TAN No.: [Tax Deduction & Collection Account No.]	BLRT001235G
PAN No.: [Permanent Account No.]	44-025-CY-
Legal Form :	Private limited liability company
Line of Business :	Printers, publishers, importers and traders of newspapers, magazines, books and periodicals in English and other languages.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 2250000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an old, established and reputed company having satisfactory track records. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are reported as fair. Profitability of the company is under severe pressure. 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 :	Plot Nos. 7-12, Kumbalgodu Industrial Area, Mysore Road, Bangalore-560 074, Karnataka, India.
Tel. No.:	91-80-25880340 / 0416 / 8437211/8437501 / 25880251
Fax No.:	91-80-25880426 / 0433 / 8437501 / 25880250
E-Mail :	editorbg.printers@smb.sprintrpg.ems.vsnl.net.in, manorama.a@deccanherald.co.in
Website :	http://www.deccanherald.com
Area :	50000 Sq. Fts
Location:	Owned
Head Office / Corporate Office/ Administrative Office :	No. 75 Mahatma Gandhi Road, Bangalore - 560 001, Karnataka, India
Tel. No.:	91-80-2558 8999 (16 lines) / 5977 / 7094
Fax No.:	91-80-25587179 / 5587096
E-Mail :	decmet@giasbg01.vsnl.net.in/editor@deccanherald.co.in/ ads@deccanherald.co.in/editorbg.printers@smb.sptintrpg.ems.v snl.net.in
Website :	http://www.deccanherald.com
Area :	Owned -- 20000 sq.fts
Printing Press :	Ø Plot Nos. 7 to 12, Kumbalgod Industrial Area, 2^nd Phase, Bangalore-560074, Karnataka, India Tel. No. 91-80 28437211/8437501/8439501/8437682/8437737 Fax No. 91-80-8437501 Ø Plot No. 128, Belur Industrial Area, Belur Village, Bangalore, Pune Highway Road, Dharwad, Karnataka Ø Mangalore in Karnataka (Very new unit-operative from August 2000
Branches :	Ø 516, Indraprakash Building, Barakhamba Road, New Delhi-110001 Tel. No. 91-11-3719474/3329323 Fax No. 91-11-3719473 Ø 303, Tulsiani Chambers, 212 Backbay Reclamation, Nariman Point, Mumbai-400021, Maharashtra Tel. No. 91-22-2842654/2844535/2872204 Fax No. 91-22-2842454 Ø No. 1235, 1^st Floor, Narayan Sastry Road, Devaraja Mohalla, Mysore-570001, Karnataka Tel. No. 91-821-420129/420532 Fax No. 91-821-420532 Ø CTS No. 17/18, Vidyanagar, Pune-Bangalore Road, Hubli-580021, Karnataka Tel. No. 91-836-372081 Fax No. 91-836-372512 Ø No. 4, Emerald House, Sarojini Devi Road, Secunderabad-500003, Andhra Pradesh Telefax No. 91-40-7847674 Ø 227/1-B, Acharya J. C. Bose Road, Kolkata-700020, West Bengal Tel. No. 91-33-2472529/2400399/2807434 Fax No. 91-33-2472529 Ø No. 111/12, 2^nd Floor, Yenapoya Chambers, Balamatta, Mangalore-575001, Karnataka Tel. No. 91-824-218334 Fax No. 91-824-215852 Ø No. 16/5, Flat “A”, Ground Floor, Prestige Point, Haddows Road, Chennai-600006, Tamilnadu Tel. No. 91-44-8267680/8254438/8214378 Fax No. 91-44-8257376 Ø No. A-2, Indrayani Society, S.No.79/11 A & B, Near Shantiben Society, Paud Road, Kothrud, Pune-411029, Maharashtra Tel. No. 91-20-5284552 Ø No. 1, Housing Colony, Ivan-E-Shahi, Gulbarga, Karnataka Ø CDC : FKCCI Building, K. G. Road, Bangalore - 560 009, Karnataka, India Tel No. 91-80-226 1300 Ø BDC : East Anjaneya Temple Street, Bangalore - 560 004, Karnataka, India Tel. No. 91-80-650 8453 Ø RDC : 81 / A, 32^nd Cross, 2^nd Block, Rajajinagar, Bangalore - 560 010, Karnataka, India. Tel No. 91-80-332 4704

DIRECTORS

Name :

Mr. K. N. Shanth Kumar

Designation :

Chairman & Managing Director

Age :

14^th February, 1961

Qualification :

B.A

Experience :

18 Years

Date of Joining :

30^th July, 1986

Name :

Mr. K. N. Hari Kumar

Designation :

Director

Age :

49 Years

Qualification :

M.A

Experience :

24 Years

Date of Joining :

July 1977

Up to

27-08-201

Name :

Mr. V. Emberumanar Chetty

Designation :

Director

Up to

31-08-2001

Name :

Mr. K. N. Tilak Kumar

Designation :

Vice Chairman and Joint Managing Director

Age :

11^th October, 1953

Qualification :

B.A. Hons.

Experience :

24 Years

Date of Joining :

30^th November, 1983

Name :

Mr. Kuldip Nayar

Designation :

Director

Age :

77 Years

Name :

Mr. S. D. Narayansa

Designation :

Director

Age :

79 Years

Name :

Mr. Parnl Shah

Designation :

Director (From 19-10-2001 to 19-09-2002)

Name :

Mr. M K Govardhan

Designation :

Director

Name :

Ms. Parul Anant Shah

Designation :

Director

Address :

No. 174, Subbaramachetty Road, Basavanagudi, Bangalore – 560004, Karnataka, India

Date of Birth/Age :

19.03.1954

Date of Appointment :

10.11.2006

Directorship in other companies:

CIN No.	Name of the company	Designation
U92200KA1995PTC019043	Kaveri Communication Private Limited	Director
U03190KA1995PTC018753	Ganga Micro Electronics Private Limited	Director
U02911KA1990PTC011122	Dharini Biotech Private Limited	Director
U67000KA1989PTC010605	Yashodhara Investments Private Limited	Director

Name

Mr. K N Shanth Kumar

Designation :

Whole-time Director

Address :

No. 298/A, 1^st Main Road, 8^th Block, Jayanagar, Bangalore – 560082, Karnataka, India

Date of Birth/Age :

14.02.1961

Date of Appointment :

30.07.2006

KEY EXECUTIVES

Name :	Mr. V Padmamahan
Designation :	Vice President (Corporate Services)
Name :	Mr. S Subramanya
Designation :	Company Secretary

MAJOR SHAREHOLDERS

Names of Shareholders	Percentage of Holding
Bodies Corporate	12.50 %
Directors and Relatives	73.09 %
Others	14.41 %
Total	100.00 %

BUSINESS DETAILS

Line of Business :	Printers, publishers, importers and traders of newspapers, magazines, books and periodicals in English and other languages.
Exports to :	Middle East/Gulf and Asian Countries
Imports from :	New Zealand, Canada, Finland, Korea, Norway, Sweden, The Netherlands, Switzerland, UK and Germany
Terms :
Selling :	Deposit (30-45 days) or Subscription terms
Purchasing :	documents through banks + suppliers Credit upto 45 days terms

PRODUCTION STATUS

Class of Goods	Unit	Production
News Paper	millions Copies	167.248
Periodicals	millions Copies	4.952
Other Publication	millions Copies	0.314

GENERAL INFORMATION

Suppliers :

Ø Tasman Pulp and Paper Company Limited

Ø P.O.Box 2186, National Mutual Building, 41 Shortland Street, Auckland, New Zealand.

Ø Finpap, Finland

Ø Fuji Photofilm Company Limited, Japan

Ø Stone Consolidated, Canada

Ø Pan Asia Paper Company, Singapore

Ø Abitibi Price Sales corporation

Ø 45, Rock Feller Plaza, New York 10111, USA

Ø Dupont Housen, UK

Ø Dai Nippon Inks and Chemicals, Japan

Ø Norske, Norway

Ø Coats of India, India

Ø Bowater, Canada

Ø AGFA, UK

Ø Tribhuvan Inks

Ø Godrej and Boyce Manufacturing Company Limited, Mumbai, Maharashtra

Customers :

News Agencies in India

No. of Employees :

450 persons -- 300 persons in office and 150 persons in corporate / administrative office

Bankers :

Canara Bank, Cantonment Branch, 88 M. G. Road, Bangalore - 560 001, Karnataka

Facilities :

Secured Loans
Institutions:
Project Term Loan: The Industrial Finance Corporation of India Limited Canara Bank	Rs. 106.000 millions Rs. 85.325 millions
Equipment Finance Loan: Canara Bank	Rs. 25.970 millions
Open Cash Credit: Canara Bank	Rs. 210.180 millions
Facilities – Credit Limits as on 03-03-2002 – Rs. 280.000 millions

Banking Relations :	Good
Auditors :	K. P. Rao and Company Chartered Accountants Madras Bank Road, Bangalore - 560 001, Karnataka, India
Associates :	Ø K. N. Guruswamy and Company Limited, Bangalore, Karnataka Ø K. M. G. Oil Mills Limited, Bangalore, Karnataka
Membership :	Confederation of Indian Industry

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
2560	Equity shares	Rs. 25000/- each	Rs. 64.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2560	Equity shares	Rs. 25000/- each	Rs. 64.000 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		64.000	64.000	64.000
3] Reserves & Surplus		468.193	440.722	548.190
NETWORTH		532.193	504.722	612.190
LOAN FUNDS
1] Secured Loans		278.375	318.610	65.750
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		278.375	318.610	65.750
DEFERRED TAX LIABILITIES
TOTAL		810.568	823.332	677.940
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		481.043	460.626	396.330
Capital work-in-progress		0.000	65.348	1.260
INVESTMENT		0.802	0.802	0.800
DEFERREX TAX ASSETS		67.283	84.527	40.200
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	103.492	116.246	85.590
	Sundry Debtors	277.606	231.599	230.950
	Cash & Bank Balances	49.670	40.257	24.850
	Loans & Advances	80.445	67.084	48.460
	Total	511.213	455.186	389.850
	Current Liabilities & Provisions	204.312	203.258	150.500
	Provisions	45.461	39.899	0.000
Total Current Liabilities		249.773	243.157	150.500
Net Current Assets		261.440	212.029	239.350
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		810.568	823.332	677.940

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	1512.851	1208.559	1201.170
Profit/(Loss) Before Tax	47.201	[151.382]	145.800
Provision for Taxation	--	--	63.800
Profit/(Loss) After Tax	47.201	[151.382]	82.000
Export Value	NA	NA	1.190
Import Value	NA	NA	239.270
Total Expenditure	1465.650	1359.941	NA

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	3.12	[12.53]	6.82
Net Profit Margin (PBT/Sales)	3.12	[12.53]	12.13
Return on Total Assets (PBT/Total Assets}	4.76	[16.53]	18.54
Return on Investment (ROI) (PBT/Networth)	0.09	[0.30]	0.23
Debt Equity Ratio (Total Liability/Networth)	0.99	1.11	0.35
Current Ratio (Current Asset/Current Liability)	2.05	1.87	2.59

LOCAL AGENCY FURTHER INFORMATION

History

Subject was incorporated on 4^th February 1948 at Bangalore in Karnataka under the name and style of The Printers Private Limited having Company Registration Number 521. The name of the company was changed to "The Printers (Mysore) Private Limited" with effect from 29^th November 1955.

Subject became a deemed public limited liability company with effect from 26^th April 1975 having Company Registration Number 08-0521.

The company publishes following publications :

DECCAN HEARALD – English Daily

PRAJAVANI – Kannda Daily

Sudha – Kannada Magzine

Mayura – Kannada Magzine

The company converted as private limited company.

Subject has been accredited with ISO 9002 for English and Kanada Publications by RWTUV, Germany.

It is also engaged in importing, exporting and trading of newspapers, magazines, books and periodicals.

Some of the Publications are as follows:

Ø DECCAN HERALD - English Daily

Ø PRAJAVANI - Kannada Daily

Ø Sudha - Kannada Weekly Magazine

Ø Mayura - Kannada Monthly Magazine

It imports 42% raw materials and 50% components/stores for own use, in addition to machinery.

It occasionally exports a small part of production.

Ø Advertising Agencies in India, Viz:-

1. The Line

2. Hukuhodo Percept

3. Aksharad

4. SSC and B

5. Calibre Advertising

6. Lowe Lintas

7. Everest Advertising

8. New Age Media

9. Maa Bozell

10. Shobagya Advertising

11. Directorate of Audio Visual Publicity

Karnataka, Tamilnadu, Kerala and Andhra Pradesh

Ø Incometax Department, (Government of India), Karnataka Region

Ø Customs and Central Excise Department, (Government of India), Karnataka Region

Commercial Taxes Department, Government of Karnataka, Bangalore

Registered office premises comprises one of the publishing centre, Dharwad unit of area admeasuring 30,000 sq.fts on three acre land, Mangalore unit of area admeasuring about 10,000 sq.fts are also owned by the company. Caption corporate /administration office premises of area admeasuring 20000 Sq. Fts. is also owned.

Subject also owns three acres land on Bannerghatta Road, Bangalore, Karnataka.

Subject’s important value of assets includes land, land lease hold, building-freehold, building –lease hold, plant & machinery, furniture & fixture and Electrical installation.

AS PER WEBSITE

The Printers (Mysore) Pvt. Ltd.,

DREAM OF A VISIONARY

Mr K N Guruswamy had a dream. The year was 1948. The heady days just after the nation's independence. Mr. Guruswamy had dedicated his life to truth and impartiality and he would not rest till his vision took concrete form. The result was The Printers (Mysore) Private Limited and its publications -Deccan Herald, Prajavani, Sudha and Mayura. An institution that has completed 50 glorious years of chronicling the joys and sorrows of the people of Karnataka, India and the world.

Over the years, the group has not forgotten what provides value to readers. Therefore, along with core competency, it satisfies the aesthetic needs of its readers with innovative layout and design in all its publications. Its well-designed publications achieve high communication impact by helping the reader cut through all the information clutter. The Group's strong identity is, therefore, the starting point, and not the residue, of any effort to win and keep readers.

While cementing its traditional strengths, the Group is also geared to face new challenges and enhance emotional contact with its readers.

As the Group believes that 'change is the only constant', it treats critical thinking as a dynamic process and keeps pace with the rapid change in the newspaper and magazine publishing industry.

CORPORATE PHILOSOPHY

The Printers (Mysore) Private Limited continues to give shape to the founder's ideals, acting as an instrument of service to the people. Here, everybody shares in the pursuit of excellence. And today's widening geopolitical compulsions only make the job more challenging. A band of hardcore professionals bonded together by team spirit, the people at The Printers (Mysore) Private Limited are passionate about growth and compassionate about people.

COMPUTERISATION

From manual operations to computerised systems, the Group focuses on Electronic News Transmission and processing. Hence its facility at Bangalore is completely computerised, right from front end up to billing. It was the first Indian publication to provide notebook computers to all its State correspondents. Moreover, all district correspondents have desktops and modems and are connected over I-Net. Since November 1989, Hubli has been a facsimile office - the latest in news publishing the world over. 

The Printers (Mysore) Private Limited was the first Indian publication group to introduce colour in the main issue. Deccan Herald and Prajavani evolved to colour in 1987 with colour supplements. Today both newspapers have special sections on every single day of the week and colour on all days of the week. Both magazines also offer high quality colour forms for both editorial as well as advertisements. 

As Karnataka prepares to be the business nucleus of the 21st century, The Printers (Mysore) Private Limited is also preparing to keep pace with a sophisticated expansion and integration programme designed to make each of its publications reflect the true essence of the new Karnataka. With this objective, the Group is now focusing on making its publications superior, not just in terms of the reading material but also in technology and quality.

TECHNOLOGICAL SUPERIORITY

When it started publication in 1948, Deccan Herald was produced on printing equipment that was comparable to the best in this part of the country at the time.

From stereo rotary machines to linotype composing machines to fully computerised editing and page production systems and web offset colour printing, it has been striding along the steady path of modernisation. The automation extends today to counting, packaging and strapping of the printed copies rolling out of the rotary machines. Side by side. advances in newspaper concepts, content, design and layout have helped Deccan Herald keep pace with the rapidly expanding interests of its readers.

WELFARE

The blueprint for rapid growth is appreciation, excellent infrastructure and a healthy and safe work environment that ensures job satisfaction. The Group cares for its people. So it has several comprehensive programmes designed to change attitude and behaviour and hone strategic decision making and problem solving skills.

Encouragement received from the Group has helped the DHPV Lalitha Kala Sangha's troupes to win many major awards and shields in cultural contests at the State level. The Group's sports squads too have fared well in sports meets and tournaments organised for the media. A unique feature is the counselling service offered to employees facing crises of diverse kinds.

Redefining excellence

Fifty spectacular years of growth, multi-faceted and on target. Fifty years of active interaction with Karnataka. its people, their aspirations, and the history they have made. Today, the Group is poised to stand tall among the newspaper giants of the country.

COMMITMENT TO QUALITY - ISO 9002

As the first step towards total quality, the Group changed its quality control processes from 'reactive' to 'proactive'. And installed a quality system ISO 9001:2000 - model for quality assurance in production, installation and servicing. With this, the Group has become the first publishing house in the country to receive this prestigious certification for all its facilities. The functions covered in the quality system include advertisement, editorial, materials, production and training.

Total Quality Management (TQM):

The Group believes in Total Quality Management (TQM) which is an effective system of integrating quality improvement efforts so as to provide a product that ensures customer satisfaction. Every section of the organisation is therefore geared to face challenges. A common vision, a common mission and common goals bind people together here.  Not content with streamlining its day-to-day functioning, the Group is constantly integrating quality into its corporate strategic planning process.

DECCAN AND HERALD 

Every day Deccan Herald touches the lives of the people of Karnataka. Today the daily shapes the opinions and directs their actions. Deccan Herald was born 54 years ago when the first edition hit the streets on June 16, 1948. The newspaper was a reflection of the optimism, and a voice of the aspirations of a newly independent nation.

Proud of its regional moorings and responsive to global changes, Deccan Herald is Karnataka's guide to the times we live in. Karnataka and Bangalore hold a special place in the newspaper's scheme of things, but its coverage of national and world happenings is equally comprehensive and analytical. Deccan Herald is also the voice of the poor and the underprivileged. On its agenda is a relentless campaign against corruption and advocacy of pro-environment economic development.

The very analytical opinion/policy page presents a variety of views on national, state and international issues. Regular columnists and experts in various fields place the latest events in perspective. The well-written editorials are known for their unbiased and informed commentary on events and developments. The newspaper's human-interest reports and profiles of interesting personalities give the reader not only news and views, but also the emotions and the drama behind the happenings. Special sections like Miscellany, On the Beat and Around the City encapsulate offbeat happenings in a short and snappy manner.

SPECIAL SUPPLEMENTS

To each his own - that is the rationale behind Deccan Herald's multi-faceted special supplements. Each Sunday morning the reader finds three special colour sections waiting on his doorstep.

SUNDAY HERALD is a supplement with strong thought-provoking and mainstream concerns, as well as regular features on consumer issues, green subjects, animal welfare, gardening, bridge, crossword and offbeat travelogues. The Entertainment section of the Sunday magazine tells the reader about all that's hot and happenin' in showbiz.

ARTICULATIONS is devoted to literature and art, with in-depth interviews, quality fiction and book reviews. Articulations also includes debates on education. 

ECONOMY AND BUSINESS is the weekly round-up of the country's industry, trade and commerce. Using interview based articles and features on international developments from foreign publications, it also brings in a global perspective on money matters. The COMMENT column analyses issues like policy decisions, mergers, takeovers and other corporate events.

SCIENCE AND TECHNOLOGY carries articles on science, industry, agriculture, development, health, information technology, ecology and research & development. Articles are written by experts for the specialist as well as the lay person. 

AVENUES is a weekly supplement that focuses on careers, personnel and corporate management issues. In-depth features on aspects of human resource development and organizational behaviour by management veterans are the section's highlights. Also included here are appointment advertisements.

SPORTSCENE reviews and previews the sporting action of the week past and the week ahead. It covers sports personalities, keeps track of developments in sports and profiles regional talent. The supplement unravels controversies and at regular intervals brings to light malpractices and corruption in the sporting arena. Sportscene also has the OPINION column which comments on sports related issues. The RESPONSE section gives readers an opportunity to express their opinions on sports matters.

METROLIFE Your bond with Bangalore, was started on November 28, 2002. This eight page tabloid size supplement captures the happenings in and around Bangalore and contains lively articles on civic issues in the city, eating out, weekend getaways around Bangalore, shopping, fashion, real estate and crime file. 

SPECTRUM carries a wide range of articles on the people of Karnataka. Profiles of personalities and development stories from the districts are also included.

LIVING concentrates on the home and family with a look at contemporary life and forays into the realms of nostalgia. It features changes in lifestyle. dress codes, home decor, gardening, child rearing, relationships, attitudes, table manners and home remedies. 

OPEN SESAME is a fun-filled eight page tabloid for kids packed with some of the best children's writing from India, do-it-yourself columns, nature notes, riddles, serial stories that are specially commissioned, everyday science, reflections of school teachers and the occasional comic strip. And of course the reader-friendly page of letters from the young readers responding to the messages and queries of Sesame Seed, the section's mascot.

THE WORLD WIDE WEB: On April 15, 1996, Deccan Herald launched its Internet edition. Today Deccan Herald reaches out to the world and its innovative and easy to navigate web site is a big hit with netizens.

ZONED EDITIONS

Deccan Herald's several zoned editions serve to cover local news in greater detail and to highlight the developments in these areas, thus being in touch with readers in every region of Karnataka.

HUBLI PRINTING Karnataka, the land of culture, also happens to be the land of distances. With the increase in technological sophistication, The Printers (Mysore) Private Limited has found a solution to this problem. The facsimile edition of Deccan Herald and Prajavani was launched on November 1, 1989. Edited in Bangalore, the news is sent through high speed telecommunication lines to Hubli-Dharwad where the paper is printed and distributed.

By using the cutting-edge of technology, like total digital workflow, to its advantage, The Printers (Mysore) Private Limited has made sure that its publications reach readers in this region on time. The Group challenged basic assumptions like the problem of distance and came up with specific strategies to tap resources using technology as a tool. Three 64 KB lines enable quick transmission of data. Offset printers like Newsline 45 and Coroset which run on state-of-the-art technology can print up to 40,000 copies per hour. As a result, circulation has increased and the Group is constantly expanding its market in this region. Readers in the districts of Dharwad, Karwar, Shimoga, Davangere, Bijapur, Bellary and Belgaum welcome the day with Deccan Herald and Prajavani.

HYDERABAD-KARNATAKA EDITION 

In addition to Bangalore and Hubli printing, Deccan Herald and Prajavani started printing a separate Hyderabad-Karnataka edition in Hyderabad  on June 15, 1999 to facilitate the readers of the northern Karnataka districts of Gulbarga, Bidar and Raichur getting their papers well in time. The printing was shifted to Gulbarga on March 11, 2001

MANGALORE EDITION

To serve the interests of the readers in coastal Karnataka and to ensure that they get their favourite newspaper at the crack of dawn, the Group set up a printing plant at Mangalore and started printing a separate edition on August 25, 2000. The number of editions, districts served and copies printed from these centres are as follows

Belur Plant

Four editions. Serves districts of Bellary, Koppal, Raichur, Bijapur (part), Bagalkot, Davangere, Shimoga (part), Uttara Kannada, Belgaum, Haveri, Gadag and Dharwad

Mangalore Plant

Two editions. Serves the districts of Chikmagalur, Shimoga (part), Kodagu, Udupi and Dakshina Kannda besides Kasargod

Gulbarga Plant

Two editions. Serves the districts of Raichur, Bidar, Bijapur (part) and Gulbarga

Name of the company

THE PRINTERS (MYSORE) LIMITED

Presented By

THE PRINTERS (MYSORE) LIMITED and CANARA BANK, CORPORATE SERVICE BRANCH, NO. 25, M. G. ROAD BANGALORE – 560001

1) Date and description of instrument creating the change

31.03.1976 F 491A – Agreement for Open Cash Credit Agreement

2) Amount secured by the charge/amount owing on the securities of charge

Rs 1.500 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

Hypothecation of imported / indigenous news print, craft paper-maplitha paper, printing ink, packing materials, bookdebts and such other goods belonging to the company and acceptable to the bank.

4) Gist of the terms and conditions and extent and operation of the charge.

Rate of interest 7.5% above the RBI rate with a minimum of 17.5% p.a. and a margin of 25%

5) Name and Address and description of the person entitled to the charge.

Canara Bank,

Corporate Service Branch, 25, M G Road, Bangalore – 560001

6) Date and brief description of instrument modifying the charge

12.07.2004

Supplemental common Hypothecation agreement

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.

By the above, the amount secured by charge stands increased from Rs 211.000 Millions to Rs 361.000 Millions a under:

Nature of facility	(Rs in Millions) Existing Limit	(Rs in Millions) Revised Limit
Cash Credit OCC / ODBD	185.000	185.000
Overdraft –CDB	6.000	6.000
Letter of Credit	15.000	15.000
ILC / FLC (DADP)
Guarantee DG	5.000	5.000
Term Loan I	---	30.000
Term Loan II	---	120.000
Total	2110.000	3610.000

Repayment – TL I repayable in 12 Quarterly installments of Rs 2.500 Millions, commencing from October 2004.

TL II repayable in 20 Quarterly installments of Rs 6.000 Millions, commencing from October 2004.

The Credit limits are additionally secured by plant / machinery described in annexure to the supplement agreement.

(all other terms and conditions remain unchanged)

Name of the company	THE PRINTERS (MYSORE) LIMITED
1) Date and description of instrument creating the change	Agreement of Hypothecation for Plant and Machinery, Stock in Trade, Book Debts dated 29^th April, 2006
2) Amount secured by the charge/amount owing on the securities of charge	Rs 428.500 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	Agreement of Hypothecation for Plant and Machinery, Stock in Trade, Book Debts
5) Name and Address and description of the person entitled to the charge.	Canara Bank, Corporate Service Branch, 25, M G Road, Bangalore – 560001
6) Date and brief description of instrument modifying the charge	29.04.2006 Supplemental common Hypothecation agreement

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.44.30
UK Pound	1	Rs.85.83
Euro	1	Rs.57.92

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	7
--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		66

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