MIRA INFORM REPORT

Report Date :

02.11.2012

1. Summary Information

		Country	India
Company Name	LOK PRAKASHAN LIMITED	Principal Name 1	Mr. Bahubali Shantilal Shah
Status	Good	Principal Name 2	Mrs. Smrutiben Shreyans Shah
		Registration #	04-000151
Street Address	Gujarat Samachar Bhavan, Khanpur, Ahmedabad – 380001, Gujarat, India
Established Date	21.09.1940	SIC Code	--
Telephone#	21.09.1940 91-79-22304040/ 10/ 25508001/ 2/ 3	Business Style 1	Publication
Fax #	91-79-25502000/ 1216642	Business Style 2	--
Homepage	http://www.gujaratsamachar.com	Product Name 1	New Paper
# of employees	600 (Approximately)	Product Name 2	Gujarat Samachar a Gujarat Daily
Paid up capital	Rs.1,594,000/-	Product Name 3	Zagmag Gujarati Magazines
Shareholders	Bodies corporate - 10.00 % Directors or relatives of Directors - 70.00 % Others - 20.00 %	Banking	Bank of Baroda
Public Limited Corp.	YES	Business Period	72 Years
IPO	YES	International Ins.	-
Public Enterprise	YES	Rating	A (66)
Related Company
Relation	Country	Company Name	CEO
Subsidiary Company	--	Gujarat Samachar INC	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2011		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	5731,625,000	Current Liabilities	3434,438,000
Inventories	991,537,000	Long-term Liabilities	0
Fixed Assets	300,142,000	Other Liabilities	0
Deferred Assets	21,139,000	Total Liabilities	3434,438,000
Invest& other Assets	3396,723,000	Retained Earnings	7005,134,000
		Net Worth	7006,728,000
Total Assets	10441,166,000	Total Liab. & Equity	10441,166,000
Total Assets (Previous Year)	8,500,220,000
P/L Statement as of	31.03.2011		(Unit: Indian Rs.)
Sales	4133,982,000	Net Profit	1015,045,000
Sales(Previous yr)	860,570,000	Net Profit(Prev.yr)	829,559,000

IDENTIFICATION DETAILS

Name :	LOK PRAKASHAN LIMITED
Registered Office :	Gujarat Samachar Bhavan, Khanpur, Ahmedabad – 380001, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.09.1940
Com. Reg. No.:	04-000151
Capital Investment / Paid-up Capital :	Rs.1.594 Millions
CIN No.: [Company Identification No.]	U22190GJ1940PLC000151
TAN No.: [Tax Deduction & Collection Account No.]	AHML00258G
PAN No.: [Permanent Account No.]	AAACL2742F
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Publication of New Paper, Gujarat Samachar a Gujarat Daily, Chitralok, Stree and Zagmag Gujarati Magazines.
No. of Employees :	600 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (66)

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 28020000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well established and a reputed company having fine track. Financial position of the company appears to be sound. Fundamentals are strong and healthy. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Rajesh
Designation :	HR Department
Contact No.:	91-79-30410000

LOCATIONS

Registered Office / Factory :	Gujarat Samachar Bhavan, Khanpur, Ahmedabad – 380001, Gujarat, India
Tel. No.:	91-79-22304040/ 10/ 25508001/ 2/ 3
Fax No.:	91-79-25502000/ 1216642
E-Mail :	editor@gujaratsamchart.com pinakincs@yahoo.com gsadvertise@yahoo.com accounts.lokprakashan@gmail.com
Website :	http://www.gujaratsamachar.com
Area :	80,000 sq. ft.
Location :	Owned
Printing Press :	The Printing Presses are Located At Khanpur – Ahmedabad Ring Road – Surat Karol Baug – New Delhi Lower Parel – Mumbai, Maharashtra, India
Area :	15,000 sq. ft
Branch Office :	Located at – · Surat · Rajkot · Baroda · Mumbai · Delhi · Kolkata · Chennai · Pune
Overseas office :	3, Lincoln HWY, Suite # 307,Edison,N.J.- 08820 U.S.A.

DIRECTORS

As on 28.09.2011

Name :

Mr. Bahubali Shantilal Shah

Designation :

Managing Director

Address :

Gujarat Samachar Bhavan, Khanpur, Ahmedabad-380001, Gujarat, India

Date of Birth/Age :

09.09.1951

Qualification :

B. Com

Date of Appointment :

01.08.2010

DIN No.:

00347465

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U22190GJ1940PLC000151	LOK PRAKASHAN LIMITED	Managing director	01/08/2010	01/08/1980	-	Active	NO
2	L51909GJ1985PLC007815	ZORA TRADERS LIMITED	Director	15/07/1986	15/07/1986	-	Active	NO
3	L65910GJ1993PLC020564	GUJRAT CREDIT CORPORATION LIMITED	Director	01/11/1993	01/11/1993	-	Active	NO
4	U99999DL1951PLC002023	THE INDIAN NEWSPAPER SOCIETY.	Director	14/09/1994	14/09/1994	-	Active	NO
5	L45201GJ1994PLC023414	GCCL CONSTRUCTION AND REALITIES LIMITED	Director	01/11/1994	01/11/1994	-	Active	NO
6	U51100GJ1995PTC024894	GANPATI IN-TRADEX PRIVATE LIMITED	Director	27/01/2003	27/01/2003	-	Active	NO
7	U22210GJ1986PLC044913	INDIAN CHRONICLE LIMITED (TR. CO.)	Director	01/04/2003	01/04/2003	-	Active	NO
8	U65922GJ1994PLC023415	GCCL HOUSING FINANCE LIMITED	Director	17/03/2006	17/03/2006	-	Active	NO
9	U65910GJ1983PLC006343	PARIJAT INFRASTRUCTURE LIMITED	Director	01/06/2006	01/06/2006	-	Active	NO
10	U65910GJ1983PTC006344	AJAB GAJAB INVESTMENT PRIVATE LIMITED	Director	01/06/2006	01/06/2006	-	Active	NO

Name :

Mrs. Smrutiben Shreyans Shah

Designation :

Managing Director

Address :

31 Anand Nagar Society Sarkhej Road, Paldi Ahmedabad - 380007, Gujarat, India

Date of Birth/Age :

10.06.1943

Qualification :

B.A.

Experience :

42 years

Date of Appointment :

01.08.2010

DIN No.:

01320759

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U22190GJ1940PLC000151	LOK PRAKASHAN LIMITED	Managing director	01/08/2010	31/03/1972	-	Active	NO
2	U65910GJ1980PLC004039	AASPAS MULTIMEDIA LIMITED	Director	12/10/2007	27/10/1986	-	Active	NO
3	U65910GJ1980PTC004040	AMAN INVESTMENTS PVT LTD	Director	22/05/1996	22/05/1996	-	Active	NO

Name :

Mr. Rajiv Chinubhai Lalbhai

Designation :

Director

Address :

Chinubhai Chimanlala Sheth Bunglow, Near Adeshwar Flat, Opposite Shahibaug Police Chowky, Shahibaug, Ahmedabad – 380004, Gujarat, India

Date of Birth/Age :

01.11.1952

Date of Appointment :

27.10.2007

Qualification :

B. Com

DIN No.:

00309545

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U45201GJ1994PTC022456	LALBHAI INDUSTRIES PRIVATE LIMITED	Director	01/10/2003	01/10/2003	-	Active	NO
2	U22190GJ1940PLC000151	LOK PRAKASHAN LIMITED	Director	27/10/2007	27/10/2007	-	Active	NO
3	U17110GJ1976PTC002920	SERENDIPITY APPARELS PRIVATE LIMITED	Director	29/09/2009	17/01/2009	-	Active	NO
4	U74140GJ2011PTC064209	EPIPHANIA SOLUTIONS PRIVATE LIMITED	Additional director	28/06/2012	28/06/2012	-	Active	NO

Name :

Mr. Mahesh Jayantilal Shah

Designation :

Director

Address :

1002, Parth 7 Parnakunj, Near Ambawadi Circle, Ellisbridge, Ahmedabad – 380006, Gujarat, India

Date of Birth/Age :

15.08.1950

Date of Appointment :

27.10.2007

Qualification :

B. Com

DIN No.:

00191844

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U65910GJ1937PTC000130	UNI FINA INVESTMENTS PVT.LTD.	Whole-time director	10/08/1972	10/08/1972	-	Active	NO
2	U70200GJ2003PTC042179	ALMAMINI PROPERTIES AND TRADING PRIVATE LIMITED	Whole-time director	28/03/2003	28/03/2003	-	Active	NO
3	U45201GJ2004PTC044539	VIVA REALTY PRIVATE LIMITED	Whole-time director	30/07/2004	30/07/2004	-	Active	NO
4	U45201GJ2005PTC045456	VIVA RESIDENCY PRIVATE LIMITED	Director	09/02/2005	09/02/2005	25/11/2011	Active	NO
5	U70120MH2003PTC139686	BRIGHTFUTURE BUILDERS PRIVATE LIMITED	Whole-time director	10/11/2005	10/11/2005	-	Active	NO
6	U45201GJ2006PTC048185	ACORN REALTY PRIVATE LIMITED	Director	25/04/2006	25/04/2006	-	Active	NO
7	U65910GJ1972PTC002140	MONA INVESTMENTS PVT LTD	Whole-time director	04/11/2006	04/11/2006	-	Active	NO
8	U45202GJ2007PTC049895	LARCH PROPERTIES PRIVATE LIMITED	Whole-time director	31/01/2007	31/01/2007	-	Active	NO
9	U22190GJ1940PLC000151	LOK PRAKASHAN LIMITED	Director	27/10/2007	27/10/2007	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Rajesh
Designation :	HR Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Major Shareholders Details not available

As on 28.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	10.00
Directors or relatives of Directors	70.00
Others	20.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Publication of New Paper, Gujarat Samachar a Gujarat Daily, Chitralok, Stree and Zagmag Gujarati Magazines.

Products :

Item Description	Item Code No.
Newspaper Daily	49021001
Journal Periodical	49021002

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

No. of Employees :	600 (Approximately)
Bankers :	· Bank of Baroda, Bhadra Branch, Ahmedabad, India · State Bank of India

Banking Relations :	--
Auditors :
Name :	Sorab S. Engineer and Company Chartered Accountants
Address :	909, ATMA House, Opposite Reserve Bank of India, Ashram Road, Ahmedabad-380009, Gujarat, India
Tel. No.:	91-79-26589710/25684304
Fax No.:	91-79-26589710
E mail:	sseahm@hotmail.com contact@sorabsengineer.com
Website:	http://www.sorabsengineer.com
PAN.:	AAAFS5191E
Subsidiary Company :	Gujarat Samachar INC
Associates :	Indian Chronicle Limited Amrut Investment G.C.C.L Housing Finance Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.200/- each	Rs.2.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7969	Equity Shares	Rs.200/- each	Rs.1.594 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		1.594	1.594	1.594
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		7005.134	6026.330	5230.223
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		7006.728	6027.924	5231.817
LOAN FUNDS
1] Secured Loans		0.000	0.000	35.636
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	35.636
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		7006.728	6027.924	5267.453
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		300.142	205.863	202.681
Capital work-in-progress		57.680	76.604	0.911
INVESTMENT		3339.043	4223.451	2789.260
DEFERREX TAX ASSETS		21.139	25.807	25.804
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	991.537	471.433	407.707
	Sundry Debtors	606.376	511.192	423.900
	Cash & Bank Balances	2275.505	1020.819	1704.346
	Other Current Assets	49.291	34.077	91.869
	Loans & Advances	2800.453	1930.974	1558.316
Total Current Assets		6723.162	3968.495	4186.138
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1168.825	650.152	658.834
	Other Current Liabilities	257.572	231.313	64.074
	Provisions	2008.041	1590.831	1214.433
Total Current Liabilities		3434.438	2472.296	1937.341
Net Current Assets		3288.724	1496.199	2248.797
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		7006.728	6027.924	5267.453

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales and Subscription of Publication	872.367	860.570	903.752
		Income from Advertisement	3244.624	2597.508	2366.734
		Trading Products sales	16.943	22.904	0.000
		Other Income	386.352	364.648	339.787
		TOTAL (A)	4520.286	3845.630	3610.273
Less	EXPENSES
		Consumption materials changes inventories	1960.565	--	--
		Manufacturing service costs	195.032	--	--
		Employee related expenses	137.554	--	--
		Administrative selling other expenses	760.143	--	--
		Newsprint Consumption	--	1533.884	2193.849
		Employee’s Emoluments	--	138.410	91.137
		Trading Products Purchases	--	29.340	0.000
		Other Expenses	--	913.116	1015.970
		TOTAL (B)	3053.294	2614.750	3300.956
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1466.992	1230.880	309.317
Less	FINANCIAL EXPENSES (D)		0.671	0.488	1.970
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1466.321	1230.392	307.347
Less/ Add	DEPRECIATION/ AMORTISATION (F)		41.108	37.333	49.508
	PROFIT BEFORE TAX (E-F) (G)		1425.213	1193.059	257.839
Less	TAX (H)		410.168	363.500	71.924
	PROFIT AFTER TAX (G-H) (I)		1015.045	829.559	185.915
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		33.165	37.058	36.910
Less	APPROPRIATIONS
		Transfer to General Reserve	1016.241	800.000	155.000
		Proposed Dividend		28.688	26.298
		Tax on Dividend		4.764	4.469
		Tax on Dividend short provision last year		0.000	0.000
	BALANCE CARRIED TO THE B/S		31.969	33.165	37.058
	IMPORTS
		Newsprint	2073.769	986.920	1215.665
		Stores & Spares	1.904	0.000	2.646
		Machinery	23.860	0.000	0.000
	TOTAL IMPORTS		2099.533	986.920	1218.311
	Earnings Per Share (Rs.)		127374.00	104098.00	23330.00

Particulars	31.03.2012
Sales Turnover (Approximately)	880.000

Expected Sales (2012-2013) : Rs.900.000 Millions

The above information has been parted by Mr. Rajesh – HR Department

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	22.46	21.57	5.15
Net Profit Margin (PBT/Sales)	(%)	163.37	138.64	28.53
Return on Total Assets (PBT/Total Assets}	(%)	20.29	28.07	5.87
Return on Investment (ROI) (PBT/Networth)		0.20	0.20	0.05
Debt Equity Ratio (Total Liability/Networth)		0.49	0.41	0.38
Current Ratio (Current Asset/Current Liability)		1.96	1.61	2.16

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	------
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	No
21]	Market information	------
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	------
26]	Buyer visit details	------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

LITIGATION DETAILS:

HIGH COURT OF GUJARAT TAX APPEAL No. 792 of 2011 [GROUP 00789-00793]
Status: PENDING (Converted from: ST/1479/2011) CCIN No:001092201100792 Last Listing Date: 05/07/2012 Coram: HONOURABLE MR. JUSTICE VIJAY MANOHAR SAHAI HONOURABLE MR. JUSTICE N.V.ANJARIA
S.NO.	Name of the Petitioner				Advocate On Record
1	COMMISIONER OF INCOME TAX				MRS MAUNA M BHATT for: PETITIONER(s) 1
S.NO.	Name of the Respondant				Advocate On Record
1	LOK PRAKASHAN LTD				MR B S SOPARKAR for : RESPONDENT(s) 1
Presented On : 13/04/2011 Registered On : 13/04/2011 Bench Category : DIVISION BENCH District : AHMEDABAD Case Originated From: THROUGH ADVOCATE Listed : 2 times Stage Name : FOR REGULAR ADMISSION (SPL.) Classification DB – OJ – TAX APPEAL – INCOME TAX ACT, 1961 – APPEAL TO HIGH COURT – U/S 260 OF IT ACT LONG TERM CAPITAL GAIN – U/S 54EA Act INCOME – TAX ACT, 1961
Office Details
S. No		Filing Date	Document Name	Advocate Name		Court Fee on Document	Document Details
1		13/04/2011	CERTIFIED COPY	MRS MAUNA BHATT ADVOCATE for PETITIONER (s) 1		6	-
2		13/04/2011	MEMO OF APPEAL/ PETITION/ SUIT	MRS MAUNA BHATT ADVOCATE for PETITIONER (s) 1		20	-
3		21/08/2012	VAKALATNAMA	MR B S SOPARKAR		5	-

News:

IPO

Scam
I am a genuine investor being victimised: Shreyans Shah

GAURAV RAGHUVANSHI

Ahmedabad , Jan. 15

The Ahmedabad-based Lok Prakashan Group and its promoters named in the IDFC IPO scam as entities receiving lakhs of shares in off-market deals before listing claim that they are innocent.

"We are genuine investors and we are seeking legal opinion ahead of challenging the Securities and Exchange Board of India (SEBI) order barring us from future public issues. We were not given any opportunity to clarify our position," Mr Shreyans S. Shah, Managing Editor and Publisher of Gujarat Samachar, a popular vernacular daily of the Lok Prakashan Group, told Business Line here.

The Lok Prakashan Group, along with its promoters - Mr Shreyans S. Shah, Mr Bahubali Shah and Ms Smruti Shreyans Shah - have been barred from dealing in the shares of Infrastructure Development Finance Company (IDFC) Limited and participating in any future initial public offering (IPO) issues.

The SEBI says its examination of the IPO dealings of Yes Bank and IDFC had revealed that certain entities had cornered IPO shares reserved for retail investors by applying in small quantities through thousands of `Benami' or fictitious names.

After allotment, these shares were transferred through a series of off-market transactions to financiers, who, in turn, sold most of these shares on the day of listing and made a windfall gain of the price difference between the IPO price and the listing price, the SEBI investigation shows.

According to SEBI's preliminary findings, the Shah family and Lok Prakashan Group received 4,46,880 shares (3,35,160 to the company, 55,860 to Mr Bahubali Shah and 27,930 each to Mr Shreyans Shah and Ms Smruti Shah) in off-market deals before the listing.

Most of these shares were subsequently sold off on listing and as of now, these entities have only some shares of IDFC.

Interestingly, most of these shares had come to the Shah family's brokers from Ms Roopalben Panchal and Sugandh Estates and Investments Ltd, the prime accused in the scam.

"I do not know Ms Roopalben Panchal, either directly or indirectly, and have nothing to do with her. I was not aware that my share broker had obtained shares from her and transferred them into my account," Mr Shah said.

IPO scam: Properties of publishing company

The Enforcement Directorate (ED) has attached the properties of a publishing company running a leading Gujarati daily in connection with the 2005 Rupal Panchal IPO scam. A part of the shares city-based share broker Rupal Panchal and her family had cornered between 2003 and 2005 were transferred to the accounts of M/s Lok Prakashan Limited.

According to the ED officials, shares worth Rs.38.000 millions had travelled to the demat accounts of the company’s Managing Director Bahubali Shah and a city-based financier and realtor Dhiren Vora. Rupal’s family members Devangi Panchal, Bhargav Panchal, Arjav Panchal, Dipak Panchal, Hina Panchal and their friend Parag Jhaveri are the others involved in the scam.

ED officials said Rupal and Jhaveri had cornered 391520 shares of IDFC Limited worth Rs257.700 millions and transferred a portion of these shares worth Rs.38.000 millions to Shah’s accounts. This was tantamount to money laundering and hence the properties of the publishing company were attached.

According to the details, Rupal and six members of her family made over Rs.450.000 millions between 2003 and 2005 from 18 IPOs, netting the maximum from the IPO of IDFC. The other IPOs from which they made profits were of IL& FS, Dishman Pharmaceuticals Limited, Yes Bank, National Thermal Power Corporation, Tata Consultancy Services and Patni Computers Limited.

The Panchal family opened fictitious bank accounts of more than 15,000 people under one account number in Bharat Overseas Bank and another in Indian Overseas Bank. Later, they cornered the shares by applying in the retail category and transferred the shares among each other and also gave a few to financiers who sold them in the share market.

The SEBI had passed an order against Rupal in 2003 stating that she and five others of her family had made irregular dealing in IPOs. The SEBI barred the six family members from trading and also slapped a penalty of Rs.380.000 millions.

The adjudicating authority had, however, the kept aside the attachment proceedings, said the ED. The ED appealed before the Appellate Tribunal under the Prevention of Money Laundering Act. The Tribunal stated in its recent order that the properties should be attached as the shares were indeed a part of Proceeds of Crime by way of money laundering.

OPERATIONAL PERFORMANCE

The Company has received income of Rs.872.367 millions (Previous year Rs.860.507 millions) from Sales and Subscription, Rs.3244.624 millions (previous year Rs.2597.507 millions) from Advertisements and Rs.386.352 millions (previous year Rs.364.648 millions) towards other income, which includes Interest, Dividends and others. Company has achieved total income of Rs.4520.335 millions as against total income of previous year Rs.3845.629 millions Thus, Company has tremendous growth record.

The Company is deploying its surplus fund into investment in Primary Market and Secondary Market including Bonds and Mutual Fund. Further investment has been made in Land, Plant and Machinery, Gold and others also.

FIXED ASSETS

· Freehold Land

· Building

· Plant and Machinery

· Electric Fittings

· Office Equipment

· Furniture and Fixture

· Library

· Vehicles

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 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 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.53.78
UK Pound	1	Rs.86.77
Euro	1	Rs.69.71

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	YES
--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		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 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.