Deccan Chronicle Holdings

The Directors take pleasure in presenting the 6th Annual Report and the
 Audited Accounts of your Company for the year ended 31st March, 2008
 together with the Auditors Report thereon.
 
 Financial Results
 
 The Companys financial results for the year under review are as
 under:
 
                                                           Rs. in lakhs
 Particulars                                    2007 -2008   2006 - 2007
 
 Total Revenue                                    82025.15     58519.40
 
 Profit before interest, tax and 
 depreciation (PBIDT)                             52383.40     29064.42
 
 Less: Interest and financial charges              7678.89      3319.45
 
 Profit before depreciation & tax (PBDT)          44704.51     25744.97
 
 Less: Depreciation                                2799.30      1712.82
 
 Profit before tax                                41905.21     24032.15
 
 Tax Provision (current, fringe and deferred)     14711.06      7896.46
 
 Net profit for the year                          27194.15     16135.69
 
 Appropriations
 
 Dividend (including corporate tax thereon)        8585.09      2676.82
 
 Transfer to debenture redemption reserve          2389.29      3087.22
 
 Transfer to general reserve                       5500.00      1613.57
 
 Balance carried forward to next year             10719.77      8758.08
 
 Financial Review
 
 Your company reported a very good performance during the year under
 review.
 
 Total Revenue has increased by 40% from Rs. 58519.40 lakhs to Rs.
 82025.15 lakhs. PBIDT increased by 80% from Rs. 29064.42 lakhs to Rs.
 52383.40 lakhs. Net profit increased by 68% from Rs. 16135.69 lakhs to
 Rs. 27194.15 lakhs.
 
 Dividend
 
 The Board of Directors of the Company at its meeting held on 27th July,
 2007 had declared and paid an Interim Dividend of 50% on the paid up
 equity share capital of the Company.  Your Directors recommended a
 further dividend of 100% at its meeting held on 30th June, 2008. The
 Final Dividend will be 150% for the financial year 2007-08.
 
 Acquisition of Hyderabad Franchise rights of Indian Premier League
 
 Your Company had participated in the bidding process conducted by
 Indian Premier League (IPL) a BCCI Venture and secured the Franchise
 Rights of Hyderabad Team. Your Company has formed a Special Purpose
 Vehicle (SPV) Deccan
 
 Chargers Sporting Ventures Limited to run this business.
 
 Launching of Bangalore Edition of English Daily Deccan Chronicle and
 Financial Daily Financial Chronicle
 
 Your Company has launched Bangalore Edition of English Daily Deccan
 Chronicle on 26th May, 2008. Your Company has also launched a
 financial daily Financial Chronicle in Hyderabad, Chennai on 16th
 April, 2008, in Bangalore on 26th May, 2008 and in Mumbai on 20th June,
 2008.
 
 Association with International Herald Tribune
 
 The financial daily  Financial Chronicle published by the Company is
 in association with International Herald Tribune and carries a 4-page
 global news section from International Herald Tribune.
 
 Ratings for Term Funding
 
 During the year CARE has assigned ratings, PR1+ for short term funding
 & AA for long term funding signifying high credit quality and low
 credit risk, which means high degree of safety with regard to timely
 payment of interest and principal on the instruments.
 
 Increase in Share Capital
 
 During the financial year 2007-08, .14050 FCCBs had been converted
 into 58,51,500 equity shares of Rs.2/- each.  Pursuant to above the
 issued, subscribed and paid-up equity share capital increased to
 24,48,77,545 equity shares of Rs.2/- each (as at 31.03.2008) from
 23,90,26,045 equity shares of Rs.2/- each (as at 31.03.2007).
 
 Subsidiary Companies
 
 The Companys subsidiaries are Odyssey India Limited, Sieger Solutions
 Limited and Asian Age Holdings Limited ; during the year an existing
 company NetLink Technologies Limited and Deccan e-solutions Pvt Ltd a
 newly incorporated company became subsidiaries of Sieger Solutions
 Limited on 08.01.2008 and 18.01.2008 respectively.
 
 Ministry of Corporate affairs has granted approval under section 212(8)
 of the Companies Act, 1956, exempting the Company from attaching with
 the Annual Report of the Company, copies of the reports of the board of
 directors and auditors, balance sheet and profit & loss account of
 subsidiary companies.
 
 Pursuant to Accounting Standard 21 as specified by the Companies
 (Accounting Standards) Rules, 2006, Consolidated Financial Statements
 presented by the Company include the financial information of the
 subsidiary companies. The Company will make available the audited
 annual accounts and related details of its subsidiaries upon request by
 any member of the company. These documents will also be available for
 inspection during business hours at the registered office/ corporate
 office of the company.
 
 Directors:
 
 In accordance with the Companies Act, 1956 read with the Articles of
 Association of the Company, Mr. M Sukumar Reddy, Director will retire
 by rotation at this meeting and is eligible for re-appointment.
 
 Report on Corporate Governance
 
 Your Company is committed to maintain the highest standards of
 Corporate Governance. As required under Clause 49 of the Listing
 Agreement with the Stock Exchanges a report on Corporate Governance is
 given in the annual report.  Certificate of the Auditor regarding
 compliance with the conditions of corporate governance is also given.
 
 Management Discussion and Analysis
 
 A detailed Management Discussion and Analysis is provided in the Annual
 Report.
 
 Fixed Deposits
 
 During the year under review, your company has neither invited nor
 accepted any deposits from the public
 
 Statutory Auditors
 
 M/s. C B Mouli & Associates, Chartered Accountants, Statutory Auditors
 of the Company hold office until the conclusion of ensuing Annual
 General Meeting and are eligible for re-appointment. The Company has
 received a letter from M/s. C B Mouli & Associates, Chartered
 Accountants to the effect that their appointment, if made, would be
 within the prescribed limits under Section 224 (IB) of the Companies
 Act, 1956, and that they are not disqualified for such appointment
 within the meaning of Section 226 of the Companies Act, 1956.
 
 Particulars of Employees
 
 Information as per Section 217 (2A) of the Companies Act, 1956 read
 with Companies (Particulars of Employees) Rules, 1975, as amended from
 time to time, forms part of this report. However, as per the provisions
 of Section 219(1) (b) (iv) of the Act, the Report and Accounts are
 being sent to all members excluding the statement containing the
 particulars of employees to be provided under Section 217(2A) of the
 Act. Any member interested in obtaining such particulars may write to
 the Company Secretary at the Corporate Office of the Company.
 
 Directors Responsibility Statement
 
 Pursuant to provisions of Section 217 (2AA) of the Companies Act, 1956
 with respect to Directors Responsibility Statement, it is hereby
 confirmed;
 
 (i) that in the preparation of the annual accounts for the financial
 year ended 31st March, 2008, the applicable Accounting Standards have
 been followed along with proper explanations relating to material
 departures;
 
 (ii) that the directors had selected such accounting policies and
 applied them consistently and made judgments and estimates that are
 reasonable and prudent so as to give a true and fair view of the state
 of affairs of the Company at the end of the financial year and of the
 profit or loss of the Company for the year under review;
 
 (iii) that the directors had taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act, 1956 for safeguarding the assets of
 the Company and for preventing and detecting fraud and other
 irregularities;
 
 (iv) that the directors had prepared the annual accounts for the
 financial year ended 31st March, 2008 on a going concern basis.
 
 Conservation of Energy, Technology Absorption
 
 Particulars regarding conservation of energy, technology absorption are
 not applicable to printing and publishing of newspapers and
 periodicals.
 
 Foreign Exchange Earnings and Outgo
 
 In accordance with the provisions of Section 217(1)(e) of the Companies
 Act, 1956, read with the Companies (Disclosure of Particulars in the
 Report of Board of Directors) Rules, 1988, the information relating to
 foreign exchange earnings and outgo is provided as under:
 
                                                    (Rs. in lakhs)
 Particulars                                2007-08          2006-07
 
 Foreign Exchange Earnings                     -              148.03
 
 Foreign Exchange Outgo                     8371.36         18779.97
 
 Acknowledgements:
 
 The Directors take this opportunity to thank Companys customers,
 suppliers, bankers, financial Institutions for their consistent support
 to the Company. Your Directors express their appreciation for the
 dedicated and sincere services rendered by the employees of the Company
 at all levels. Your Directors also wish to express their gratitude to
 the Shareholders for the confidence reposed by them in the Company and
 for the continued support and co-operation.
 
                                             For and on behalf of the
                                                Board of Directors
 
 Place : Secunderabad                           T Venkattram Reddy
 Date  : 30.06.2008                                  Chairman