MIRA INFORM REPORT

Report Date :

22.12.2011

IDENTIFICATION DETAILS

Name :	ZEE AKAASH NEWS PRIVATE LIMITED

Registered Office :	Continental Building, 135, Dr. Annie Besant Road, Worli, Mumbai – 400 018, Maharashtra

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	28.10.2005

Com. Reg. No.:	11-157148

Capital Investment / Paid-up Capital :	Rs.40.000 Millions

CIN No.: [Company Identification No.]	U92132MH2005PTC157148

Legal Form :	Private Limited Liability Company

Line of Business :	Production and Broadcasting of Television Software.

No. of Employees :	Information denied by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 900000

Status :	Satisfactory

Payment Behaviour :	Usually Correct

Litigation :	Clear

Comments :	Subject is an established company having satisfactory track. The company has been successful in wiping off the accumulated losses of the previous years. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INFORMATION DENIED BY

Management non-cooperative.

LOCATIONS

Registered Office :	Continental Building, 135, Dr. Annie Besant Road, Worli, Mumbai-400018, Maharashtra, India
Tel. No.:	91-22-66971234/66971234/24831234
Fax No.:	91-22-24955974/24900302
E-Mail :	sanghavip@zeenetwork.com

DIRECTORS

As on 22.07.2011

Name :

Mr. Avik A. Dutta

Designation :

Director

Address :

Flat No.2, Block A4, 5^th Floor, 98, Christopher Road, Kolkata-700046, West Bengal, India

Date of Birth/Age :

03.03.1962

Date of Appointment :

28.10.2005

DIN No.:

00524012

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U92321WB2000PTC091722	SKY B (BANGLA) PRIVATE LIMITED	Director	27-09-00	27-09-00	Active	NO
2	U92132MH2005PTC157148	ZEE AKAASH NEWS PRIVATE LIMITED	Director	28-10-05	28-10-05	Active	NO
3	U22100WB2009PTC132453	AKASH BANGLA PRIVATE LIMITED	Director	05-02-09	05-02-09	Active	NO

Name :

Mr. Dineshkumar K. Garg

Designation :

Director appointed in casual vacancy

Address :

2-35, II Floor, Sector 9, Vaishali, Ghaziabad-201010, Uttar Pradesh, India

Date of Birth/Age :

20.06.1969

Date of Appointment :

31.07.2009

DIN No.:

02048097

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U99999DL1999PTC101126	PRIME PUBLISHING PRIVATE LIMITED	Director	24-07-10	20-08-08	Active	NO
2	U92132MH2005PTC157148	ZEE AKAASH NEWS PRIVATE LIMITED	Director	23-07-10	31-07-09	Active	NO

Name :

Mr. Barun Rajendranath Das

Designation :

Additional Director

Address :

A1/312, Ekta Garden Apartment, 9 I. P. Extension, Patpar Gunj, New Delhi-110092, India

Date of Birth/Age :

15/11/1969

Date of Appointment :

30/07/2010

DIN No.:

01885379

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U22211DL2007NPL165480	NEWS BROADCASTERS ASSOCIATION	Director	30-09-08	15-11-07	Active	NO
2	U92132MH2005PTC157148	ZEE AKAASH NEWS PRIVATE LIMITED	Director	22-07-11	30-07-10	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 22.07.2011

Names of Shareholders		No. of Shares
Avik A. Dutta		10
Dineshkumar K. Garg		10
Sky B (Bangla) Private Limited, India		1599988
Zee News Limited, India		2399982
Barun Rajendranath Das		10

Total		4000000

As on 22.07.2011

Equity Share Breakup		Percentage of Holding
Category
Bodies corporate		100.00

BUSINESS DETAILS

Line of Business :

Production and Broadcasting of Television Software.

GENERAL INFORMATION

No. of Employees :

Information denied by the management.

Bankers :

Not Available

Facilities :

Secured Loan

As on 31.03.2011

[Rs. in Millions]

As on 31.03.2010

[Rs. in Millions]

Loans taken for vehicles

0.195

0.292

Total

0.195

0.292

NOTE: Vehicles loan from Kotak Mahindra Prime Limited [Amount due within one year Rs.0.133 million] which consists of Rs.0.112 million towards repayment of loan and Rs.0.022 million towards payment of interest.


Banking Relations :	--

Auditors :
Name :	Ashok Kumar Aggarwal and Company Chartered Accountants
Address :	3288, Hauz Qazi, New Delhi-110006, India
Tel. No.:	91-11-23260137/23282398
Pan No.:	AAKPA4742M

Holding Company:	Zee News Limited [Extent to holding 60%]

Other Related Parties:	· Sky Bangla Private Limited · Dish TV India Limited · Akash Bangla Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs.10/- each	Rs.40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs.10/- each	Rs.40.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		40.000	40.000	40.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		185.919	98.800	98.800
4] (Accumulated Losses)		0.000	(21.077)	(48.110)
NETWORTH		225.919	117.723	90.690
LOAN FUNDS
1] Secured Loans		0.195	0.292	0.376
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.195	0.292	0.376
DEFERRED TAX LIABILITIES		10.545	0.000	0.000

TOTAL		236.659	118.015	91.066

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		115.202	101.545	105.982
Capital work-in-progress		4.014	0.000	0.000

INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	4.735	22.660

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.613	0.135	0.456
	Sundry Debtors	125.362	84.546	72.778
	Cash & Bank Balances	105.058	49.046	4.545
	Other Current Assets	6.119	3.004	0.000
	Loans & Advances	32.970	7.300	6.012
Total Current Assets		270.122	144.031	83.791
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	10.366	19.675	21.228
	Other Current Liabilities	107.168	102.752	98.923
	Provisions	35.145	11.467	4.492
Total Current Liabilities		152.679	133.894	124.643
Net Current Assets		117.443	10.137	(40.852)

MISCELLANEOUS EXPENSES		0.000	1.598	3.276

TOTAL		236.659	118.015	91.066

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Sales and Services	337.399	216.425
		Other Income	4.779	0.795
		TOTAL	342.178	217.220

Less	EXPENSES
		Office Expenses
		Administrative Expenses	188.824	164.958
		Advertising Expenses
		TOTAL	188.824	164.958

	PROFIT BEFORE TAX		153.354	52.262

Less	TAX		45.158	25.229

	PROFIT AFTER TAX		108.196	27.033

	IMPORTS
		Capital Goods	5.810	0.556
		Capital Goods in Transit	3.287	0.000
	TOTAL IMPORTS		9.097	0.556

	Earnings Per Share (Rs.)		27.05	6.76

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	31.62	12.44	NA

Net Profit Margin (PBT/Sales)	(%)	45.45	24.15	NA

Return on Total Assets (PBT/Total Assets}	(%)	39.80	21.28	NA

Return on Investment (ROI) (PBT/Networth)		0.68	0.44	NA

Debt Equity Ratio (Total Liability/Networth)		0.68	1.14	1.38

Current Ratio (Current Asset/Current Liability)		1.77	1.07	0.67

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars

31.03.2011

(Rs. in millions)

31.03.2010

(Rs. in millions)

31.03.2009

(Rs. in millions)

Sundry Creditors

10.366

19.675

21.228

PERFORMANCES:

Business Overview subject continued making stronger inroads into the Bengali News domain with a consistent all year performance across all parameters. ‘24 Ghanta’, the 24X7 Bengali News channel run by the Company was leader in terms of viewership, reach and time spent (Source: TAM, CS 15 , WB). 24 Ghanta demonstrated its ability to connect with the people of Bengal by taking up issues and concerns related to them through initiatives like Ananya Samman, State Summit, Amar Shahar and Amar Bangla Amar Gourab. The operational performance, during the year, was exceedingly robust with an increase of 58% in operating revenues from Rs.216.400 millions to Rs.337.400 millions. Profit after tax stood at Rs. 108.200 millions as against Rs.27.000 millions in previous fiscal.

FIXED ASSETS:

· Computer

· Plant and Machinery

· Motor Vehicles

· Furniture and Fixtures

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.52.67
UK Pound	1	Rs.82.53
Euro	1	Rs.69.13

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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	Capability to overcome financial difficulties seems comparatively below average.	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.