MIRA INFORM REPORT

Report Date :

28.12.2011

IDENTIFICATION DETAILS

Name :	INFOMEDIA 18 LIMITED (w.e.f. 16.09.2008)
Formerly Known As :	INFOMEDIA INDIA LIMITED
Registered Office :	503, 504 and 507, 5^th Floor, Mercantile House, 15 Kasturba Gandhi Marg, New Delhi – 110 001
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.05.1955
Com. Reg. No.:	211606
Capital Investment / Paid-up Capital :	Rs.500.296 millions
CIN No.: [Company Identification No.]	L22219DL1955PLC211606
TAN No.: [Tax Deduction & Collection Account No.]	DELI05330D
Legal Form :	A Public Limited Liability Company. Company’s shares are listed on the Stock Exchange.
Line of Business :	The principal activities are printing annual report, greeting cards, calendars, diaries, continuous stationery and other products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (35)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 420000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a well established and reputed company having moderate track. There appears huge accumulated losses recorded by the company. Profitability of the company is under pressure. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

NOTES :

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

INFORMATION DECLINED BY

MANAGEMENT NON-COOPERATIVE

LOCATIONS

Registered Office :	503, 504 and 507, 5^th Floor, Mercantile House, 15 Kasturba Gandhi Marg, New Delhi – 110 001, India
Tel. No.:	91-11-41506112-14
Fax No.:	91-11-41506115
E-Mail :	ho@infomedia18.in
Website :	www.infomedia18.in
Corporate Office :	‘A’ Wing, Ruby House, J. K. Sawant Marg, Dadar (West), Mumbai - 400 028, Maharashtra, India
Tel. No.:	91-22-56666665 / 30245000 / 24232323
Fax No.:	91-22-30034499 / 30034754 / 24302707
Factory :	Plot No.3, Sector 7, Off Sion Panvel Road, Nerul, Navi Mumbai - 400 706, Maharashtra, India
New Media Division 1 :	4th Floor, Simran House, Parsipanchayat Road, Andheri (East), Mumbai – 400 069, Maharashtra, India
Tel. No.:	91-22-33591400
New Media Division 2 :	Champion House, Ground Floor, Parsi Panchayat Road, Andheri (East), Mumbai – 400 069, Maharashtra, India
Branch Office :	Located at · Ahmedabad · Bangalore · Bhopal · Chennai · Coimbatore · New Delhi – Prakashdeep · New Delhi – Shivaji Marg · Hyderabad · Indore · Jaipur · Kochi · Kolkata · Lucknow · Mumbai – Andheri · Mumbai – Chembur · Mumbai – Nerul Plant · Mumbai – Thane · Mumbai – Vashi · Mumbai – Wadala · Mumbai – Matunga · Nagpur · Nashik · Pune · Rajkot · Surat · Vadodara · Vizakhapatnam · Ludhiana · Goa

DIRECTORS

As on 31.03.2011

Name :	Mr. Sanjeev Manchanda
Designation :	Chairman
Name :	Mr. Haresh Chawla
Designation :	Managing Director
Name :	Mr. Raghav Bahl
Designation :	Director
Date of Birth/Age :	02.01.1961
Qualification :	Graduated in B.A. Hons (Economics) from St. Stephens College, and then did his Masters in Business Administration from the University of Delhi. He attended a doctoral program at the Graduate School of Business, Columbia University, New York.
Date of Appointment :	21.08.2008
Expertise in specific Functional areas :	Raghav Bahl is the Managing Director of Network 18 Media and Investments Limited He began his working life as a management consultant with A.F. Ferguson and Company. His second corporate job was with American Express Bank - before he turned to his first love, media. Winner of the Sanskriti Award for Journalism in 1994, Raghav has over 23 years experience in television and journalism. He worked with several media organizations, including Doordarshan, India Today (where he worked on the pioneering video newsmagazine, Newstrack), BBC World (where he was the Editor-cum-Anchor of the highly successful weekly show, India Business Report) and Business India, before he founded Television Eighteen India Limited (TV18). Since 1994, he has led The TV18 Group (now known as Network 18) as its principal shareholder and managing director. He has been instrumental in crafting successful Joint Ventures with such media giants as NBC Universal, Viacom, Time Warner and Forbes. In a short span of 15 years, Network 18 has achieved a market capitalization in excess of $ 2 bn. The Group is counted among the fastest wealth creators in this part of the world, delivering a CAGR of over 100% to its stockholders over the past five years. Raghav is a widely admired entrepreneur, and was hailed as a Global Leader of Tomorrow by the World Economic Forum (WEF). He was also selected by Ernst and Young as the Entrepreneur of The Year (2007) for Business Transformation.
List of other public companies incorporated in India in which directorships held as on March 31, 2011 :	· Television Eighteen India Limited · Network18 Media and Investments Limited · ibn18 Broadcast Limited · Network18 Publications Limited · Web18 Software Services Limited · News Wire18 Limited · TV18 Home Shopping Network Ltd. · Greycells18 Media Limited · Digital18 Media Limited
Name :	Mr. Manoj Mohanka
Designation :	Director
Name :	Mr. Senthil Chengalvarayan
Designation :	Director
Date of Birth/Age :	17.04.1963
Qualification :	Graduate in Economics from Madras University, he has done his Masters in Journalism from the Times Research Foundation.
Date of Appointment :	21.08.2008
Expertise in specific Functional areas :	Senthil Chengalvarayan is the President and Group Editorial Director of TV18 Business Media. Senthil heads a host of verticals which form part of the Business Media ecosystem (Business/Tech/Personal Finance magazines, financial portals, business wires, extensions of CNBC TV18 and CNBC AWAAZ, mobile etc). Prior to this role, he led a team of professional journalists that has made CNBC TV18 the most successful business media network in the country. He has been a business journalist for over two decades. After spending his initial years in the profession with various Business Dailies he joined Television Eighteen in 1994 just as the company was pioneering the entry of private companies into Television News. He's seen the industry grow then from uncertain beginnings to the phenomenon that it is today.
Name :	Mr. B. Saikumar
Designation :	Director

KEY EXECUTIVES

Name :	Tasneem Udaipurwala
Designation :	Company Secretary
Date of Appointment :	06.06.2011
Name :	Mr. Sunil Thomas
Designation :	Chief Operating Officer (New Media)
Name :	Mr. Sandeep Khosla
Designation :	Chief Executive Officer (Magazine Publishing)
Name :	Mr. Sandeep Das
Designation :	EVP Operation Business Directories
Name :	Mr. Mukhtar Qureshi
Designation :	EVP Sales Business Directories
Name :	Mr. Sanjeev Singh
Designation :	EVP Human Resources
Name :	Mr. Sridhar Vaidyanathan
Designation :	EVP Sales
Name :	Mr. A. R. Iyer
Designation :	EVP Manufacturing
Name :	Mr. Anand Jain
Designation :	EVP New Media Business

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Category of Shareholders	No. of Shares	% of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	23,913,061	47.64
Sub Total	23,913,061	47.64
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	23,913,061	47.64
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1,320	-
Financial Institutions / Banks	4,211	0.01
Insurance Companies	625,925	1.25
Foreign Institutional Investors	4,386,030	8.74
Sub Total	5,017,486	10.00
(2) Non-Institutions
Bodies Corporate	4,853,381	9.67
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	9,715,153	19.36
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	6,685,549	13.32
Any Others (Specify)	9,542	0.02
Trusts	9,542	0.02
Sub Total	21,263,625	42.36
Total Public shareholding (B)	26,281,111	52.36
Total (A)+(B)	50,194,172	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	50,194,172	-

Shareholding belonging to the category "Promoter and Promoter Group"

Sl. No.	Name of the Shareholder	Total Shares held
		Number	As a % of grand total (A)+(B)+(C)
1	Network 18 Media and Investments Limited	23,913,061	47.64
	Total	23,913,061	47.64

Shareholding belonging to the category "Public" and holding more than 1% of the Total No. of Shares

Sl. No.	Name of the Shareholder	No. of Shares	Shares as % of Total No. of Shares
1	Acacia Partners LP	2,755,282	5.49
2	Pramod Premchand Shah	2,238,098	4.46
3	SPS Capital and Money Management Services Private Limited	1,008,846	2.01
4	Sanjiv Dhireshkumar Shah	743,183	1.48
5	Acacia Conservation Fund LP	635,500	1.27
6	Oriental Insurance Company Limited	625,925	1.25
7	Acacia Institutional Partners LP	606,315	1.21
8	Accurate Finstock Private Limited	597,800	1.19
	Total	9,210,949	18.35

BUSINESS DETAILS

Line of Business :

The principal activities are printing annual report, greeting cards, calendars, diaries, continuous stationery and other products.

Products :

Product Description	ITC Code
Buyers Guide	NA
Printed Books	49011001
Special Interest Publications	NA

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Axis Bank

· Punjab National Bank

· HSBC Bank

· Bank of Baroda

· Central Bank of India

Facilities :

Secured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
From Banks :
Long Term :
- Term Loans Term loans includes instalments payable within one year Rs.18.000 millions	110.007	250.295
Short Term:
- Working Capital Demand Loans	0.000	50.000
- Cash Credit Facilities	99.012	93.737
Interest accrued and due on Term Loan	1.574	4.159
Interest accrued and due on Cash Credit	1.200	0.000
Total	211.793	398.191

a) Terms Loans:

Axis Bank

Principal of Rs. Nil (2009-2010: Rs.131.250 millions)

Interest accrued and due of Rs. Nil(2009-2010: Rs.2.693 millions)

- The loan has been repaid during the year

Punjab National Bank

Principal of Rs.110.007 millions (2009-2010: Rs.119.045 millions)

Interest accrued and due of Rs.1.574 millions (2009-2010: Rs.1.466 millions)

- First exclusive charge/ mortgage on all immovable and moveable assets of the Company.

- Second charge on all existing fixed assets of the Company including all immovable properties of the

Company.

- Corporate Guarantee from Network18 Media and Investments Limited

- Interest accrued and due of Rs.1.574 millions has been duly debited by bank on April 2, 2011

b) Working Capital Demand Loans:

HSBC

Principal of Rs. Nil (2009-2010: Rs.50.000 millions)

Interest accrued and due of Rs. Nil (2009-2010: Rs. Nil)

- The loan has been repaid during the year

c) Cash Credit Facilities:

Axis Bank

Principal of Rs.99.012 millions (2009-2010: Rs.93.737 millions)

- Pari passu second charge on all fixed assets of the Company.

- Pari passu first charge on all current assets of the Company

- Corporate Guarantee from Network18 Media and Investments Limited

Unsecured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Inter Corporate Deposit (ICD) Accepted
- Holding Company	0.000	180.000
- Subsidiary Companies	0.000	148.000
- Interest Accrued and due on Inter Corporate Deposit (Maximum amount outstanding at any time during the year Rs. 413.000 millions)	0.000	71.625
Total	0.000	399.625

Banking Relations :	--
Auditors :
Name :	S. R. Batliboi and Associates Chartered Accountants
Legal Advisors :	Wadia Ghandy and Company
Joint Venture :	Reed Infomedia India Private Limited (‘REED’) w.e.f. 30.03.2006
Fellow subsidiaries (w.e.f. 21.08.2008) :	· ibn18 Broadcast Limited (‘ibn 18’) · TV18 Home Shopping Network Limited (‘Homeshop 18’) · Viacom18 Media Private Limited (‘Viacom 18’) · Network18 Publication Limited · Digital 18 Media Limited (‘Digital 18’) · Web18 Software Services Limited (‘Web 18’) · e-Eighteen.Com Limited (E-18.Com) · E18, division of Network18 (‘E18’) · Sports18, division of Network 18 (‘Sports18’) · IBN Lokmat News Private Limited (‘IBN Lokmat’)

CAPITAL STRUCTURE

As on 09.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
100000000	Equity Shares	Rs.10/- each	Rs.1000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50194172	Equity Shares	Rs.10/- each	Rs.501.942 millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
100000000	Equity Shares	Rs.10/- each	Rs.1000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50029622	Equity Shares	Rs.10/- each	Rs.500.296 millions

· Of the above fully paid up shares:

1. 148,000 Equity Shares of Rs.10 each are issued as fully paid up pursuant to a contract without payment having been received in cash.
2. 470,000 Equity Shares of Rs.10 each are issued as fully paid up bonus shares by capitalisation of general reserve.
3. 17,798,900 Equity Shares of Rs.10 each are issued as fully paid up bonus shares by capitalisation of securities premium account.
4. 23,913,061 Equity Shares of Rs.10 each are held by Television Eighteen India Limited, the Holding company.
5. 640,950 Equity shares of Rs.10 each are issued as fully paid shares as per the Employee Stock Option Scheme of the Company.
6. 29,820,569 Equity shares of Rs.10 each are issued as fully paid shares as per issue of share on rights basis.

· The Company has granted (net of options lapsed and exercised)

9,750

Share options under the Employee Stock Option Scheme (‘ESOP’) at the market price prior to the date of grant of options. 9,750 of these options have vested.

· 712,400

Share options under the Employee Stock Option plan, 2007 at the market price prior to the date of grant of options further

34,800 of these options have vested, further 238,800 will vest on 1st April 2011, further 238,800 will vest on 1st October 2011, further 80,000 will vest on 26th October, 2011, further 60,000 will vest on 26th October, 2012, further 60,000 will vest on 26th October, 2013.

· Pursuant to the scheme of arrangement between the Company and its shareholders, the Company had purchased 33,16,197 shares, @ Rs 245/- per equity share. The said scheme of Arrangement was approved by the Hon’ble High Court of Bombay vide its order dated September 15, 2006.

· Pursuant to the Scheme of Arrangement between I-Ven Interactive Limited and subject and their respective shareholders approved by High Court vide its order dated 24th July 2009, the effective date being 25th August 2009, 123,38,112 Equity shares earlier held by I-Ven Interactive Limited had been cancelled and equivalent number of shares were issued to its respective shareholders.

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		500.296	497.057	198.851
2] Right Issue Application Money		0.026	0.034	0.000
3] Stock Option Outstanding		14.034	14.007	0.000
4] Share Application Money pending allotment		0.000	0.000	142.200
5] Reserves & Surplus		830.752	821.658	37.804
6] (Accumulated Losses)		(1240.234)	(933.670)	(463.600)
NETWORTH		104.874	399.086	(84.745)
LOAN FUNDS
1] Secured Loans		211.793	398.191	601.681
2] Unsecured Loans		0.000	399.625	500.209
TOTAL BORROWING		211.793	797.816	1101.890
DEFERRED TAX LIABILITIES		12.856	12.922	16.269
TOTAL		329.523	1209.824	1033.414
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		221.725	228.030	235.464
Capital work-in-progress		6.247	9.699	0.640
INVESTMENT		153.653	1067.175	650.190
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	78.761	66.098	82.055
	Sundry Debtors	318.745	349.871	312.077
	Cash & Bank Balances	43.702	69.867	41.548
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	370.711	336.450	376.632
Total Current Assets		811.919	822.286	812.312
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	439.294	520.677	528.257
	Other Current Liabilities	383.119	362.372	103.378
	Provisions	49.650	44.622	35.374
Total Current Liabilities		872.063	927.671	667.009
Net Current Assets		(60.144)	(105.385)	145.303
MISCELLANEOUS EXPENSES		8.042	10.305	1.817
TOTAL		329.523	1029.824	1033.414

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2011	31.03.2010	31.03.2009
	SALES
			Sales	1409.052	1068.056	1239.405
			Other Income	41.940	100.848	131.839
			TOTAL (A)	1450.992	1168.904	1371.244
Less	EXPENSES
			Materials Consumed	299.062	259.438	407.141
			Cost of Traded Products	4.172	4.199	9.951
			Personnel Expenses	581.522	500.840	510.311
			Operating and other expenses	756.679	821.356	860.013
			TOTAL (B)	1641.435	1585.833	1787.416
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			(190.443)	(416.929)	(416.172)
Less	FINANCIAL EXPENSES (D)			52.541	166.460	109.856
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			(242.984)	(583.389)	(526.028)
Less/ Add	DEPRECIATION/ AMORTISATION (F)			55.309	60.754	57.128
	LOSS BEFORE TAX BEFORE EXCEPTIONAL ITEMS			(298.293)	(644.143)	(583.156)
Less	EXCEPTIONAL ITEMS (INCOME)/EXPENSE			4.819	(148.000)	239.790
	LOSS BEFORE TAX AND PRIOR PERIOD ITEMS			(303.112)	(496.143)	(822.946)
Less	PRIOR PERIOD ITEMS(NET) (INCOME)/EXPENSE			0.000	3.878	0.000
	PROFIT/(LOSS) BEFORE TAX			(303.112)	(500.021)	(822.946)
	PROFIT/(LOSS) FROM CONTINUING OPERATIONS BEFORE TAX			17.868	(18.431)
Less	TAX EXPENSES
	Current Tax relating to prior years			3.518	3.669	23.593
	Deferred Tax (Credit) / Charge			(0.066)	(3.347)
	PROFIT/(LOSS) FROM CONTINUING OPERATIONS AFTER TAX			14.416	(18.753)
Add	PROFIT/(LOSS) FROM DISCONTINUING OPERATIONS BEFORE TAX			(320.980)	(481.590)
	PROFIT/(LOSS) AFTER TAX			(306.564)	(500.343)	(846.539)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			(933.670)	(463.600)	383.069
Add	PROFIT AND LOSS ACCOUNT BALANCE OF I-VEN INTERACTIVE LIMITED TRANSFERRED AS PER SCHEME OF ARRANGEMENT			0.000	134.543	0.000
Add	AMOUNT ADJUSTED AS PER SCHEME OF ARRANGEMENT			0.000	(104.270)	0.000
Less	APPROPRIATIONS
		Short Provision of earlier year’s Proposed Dividend and Dividend tax thereon		0.000	0.000	0.130
	BALANCE CARRIED TO THE B/S			(1240.234)	(933.670)	(463.600)
	EARNINGS IN FOREIGN CURRENCY
			Magazine and Other advertisements	18.273	72.383	30.203
			Events	0.148	0.000	0.024
			Agency Commission	73.187	39.447	1.712
			Receipt on Sale of Subsidiary	183.316	0.000	0.000
	TOTAL EARNINGS			274.924	111.830	31.939
	IMPORTS
			Paper	122.316	83.704	99.627
			Printing and Binding Material	0.509	0.452	0.209
			Spares	2.740	0.861	2.007
	TOTAL IMPORTS			125.565	85.017	101.843
	Earnings Per Share (Rs.)			(6.14)	(16.63)	(33.97)

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011
Type	1^st Quarter	2^nd Quarter
Net Sales	235.990	317.310
Total Expenditure	334.520	430.500
PBIDT (Excl OI)	(98.530)	(113.190)
Other Income	2.630	1.640
Operating Profit	(95.900)	(111.550)
Interest	11.090	13.020
Exceptional Items	0.000	0.000
PBDT	(106.990)	(124.570)
Depreciation	12.770	13.500
Profit Before Tax	(119.760)	(138.070)
Tax	(12.860)	0.000
Provisions and contingencies	0.000	0.000
Profit After Tax	(106.900)	(138.070)
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	(106.900)	(138.070)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(21.13)	(42.80)	(61.74)
Net Profit Margin (PBT/Sales)	(%)	(21.51)	(46.82)	(66.40)
Return on Total Assets (PBT/Total Assets}	(%)	(29.32)	(47.61)	(78.54)
Return on Investment (ROI) (PBT/Networth)		(2.89)	(12.53)	9.71
Debt Equity Ratio (Total Liability/Networth)		10.33	4.32	(20.87)
Current Ratio (Current Asset/Current Liability)		0.93	0.89	1.22

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

Particulars	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
Due to Micro, Small and Medium enterprises	0.520	2.302	0.611
Due to Holding company	151.402	189.589	73.467
Due to Others	287.372	328.786	454.179
Total	439.294	520.677	528.257

NATURE OF OPERATIONS

The Company is in the business of publishing Business Directories and Special Interest Magazines in India, Printing services and Agency services.

OPERATING RESULTS AND PERFORMANCE

The operating revenue of the Company from business operations increased from Rs.1068.100 millions in 2009-10

to Rs.1409.100 millions in 2010-11.

The growth in the publishing business was 21.60% as compared to the previous year. The division reported revenue of Rs.1053.800 millions in 2010-11 as against Rs.685.900 millions in 2009-10. The revenue in the printing business was lower by 3.62% as compared to the previous year. The division reported revenue of Rs.278.500 millions in 2010-11 as against revenue of Rs.323.500 millions in 2009-10. The year witnessed revenue levels in publishing growing back to pre economic slowdown levels, at the back of improving economic environment and a varied and much appreciated product offering by the company.