MIRA INFORM REPORT

Report Date :

08.04.2011

IDENTIFICATION DETAILS

Name :	BOLLYWUD MUSIC COMPANY
Registered Office :	10, Citi Mall, New Link Road, Andheri West, Mumbai 400053, Maharashtra
Country :	India
Financials (as on) :	31.12.2010
Year of Establishment :	2009
Legal Form :	Sole Proprietory Concern
Line of Business :	Acquisition and Licensing of Various Music Rights Belong in to Various Producers and Music House

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is a two year old proprietory concern establishing itself gradually. The concern is doing well. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The concern can be considered for small to mediocre 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Vijay Bhandari
Designation :	Chartered Accountant
Contact No.:	91-9821014550
Date :	30.03.2011

LOCATIONS

Registered Office :	10, Citi Mall, New Link Road, Andheri West, Mumbai 400053, Maharashtra, India
Mobile No.:	91-9821014550 (Mr. Vijay Bhandari)
Area :	500 sq.ft Approximately
Corporate Office :	22, City Mall, Andheri Link Road, Next To Royal Classic, Andheri (West), Mumbai 400053, Maharashtra, India

SOLE PROPRIETOR

Name :	Mr. Mitesh Thakkar
Designation :	Proprietor
Address :	A/702, Shiv Shakti Apartment, Rajendra Prasad Road, Mulund, Mumbai 400080, Maharashtra, India
Date of Birth/Age :	35 years
Qualification :	M Com

KEY EXECUTIVES

Name :	Mr. Vijay Bhandari
Designation :	Chartered Accountant

BUSINESS DETAILS

Line of Business :	Acquisition and Licensing of Various Music Rights Belong in to Various Producers and Music House
Terms :
Selling :	Cash, Credit (60 Days)
Purchasing :	Cash, Credit (15-30 Days)

GENERAL INFORMATION

Customers :	Broad Casting
No. of Employees :	7 Approximately
Bankers :	Not Available
Facilities :	--

Banking Relations :	--
Auditors :	Not Available
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

AS ON 31.12.2010

Particulars	Rs. In Millions
Capital A/C	11.598
Add: Profit for the period	2.301
Less: Drawings	0.675
Total	13.224

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

PROVISIONAL BALANCE SHEET AS AT DECEMBER, 2010 (Rs. In Millions)

Liabilities	Amount	Amount	Assets	Amount	Amount
Capital A/C	11.598		Computer and Printers	0.436
Add: Profit for the period	2.301		Less: Depreciation	0.098	0.338
Less: Drawings	0.675	13.224	Mobile A/c	0.030	0
Deposit received from Broadcasters		210.000	Less: Depreciation	0.003	0.027
Sundry Creditors		0.873	Furniture and Fixtures	0.077	0
Provision for Expenses and Tax		1.088	Less: Depreciation	0.006	0.071
			Motor Car	0.588	0
			Less: Depreciation	0.088	0.500
			Television	0.070	0
			Less: Depreciation	0.008	0.062
			Audio Video Systems	0.192	0
			Less: Depreciation	0.022	0.170
			TDS Receivable		0.487
			Film and Music Rights		150.500
			Sundry Debtors		2.161
			Trade Advances for Rights		69.551
			Cash and Bank balance		1.318
Total		225.185	Total		225.185

BALANCE SHEET AS AT MARCH 31, 2010 (Rs. In Millions)

Liabilities	Amount	Amount	Assets	Amount	Amount
Capital A/C	11.335		Computer and Printers	0.625
Add: Profit for the period	0.864		Less: Depreciation	0.188	0.437
Less: Drawings	0.600	11.599	Mobile A/c	0.036	0
Deposit received from Broadcasters		25.500	Less: Depreciation	0.005	0.031
Sundry Creditors		0.375	Furniture and Fixtures	0.085	0
Provision for Expenses and Tax		0.824	Less: Depreciation	0.009	0.076
			Motor Car	0.735	0
			Less: Depreciation	0.147	0.588
			Television	0.084	0
			Less: Depreciation	0.012	0.072
			Audio Video Systems	0.226	0
			Less: Depreciation	0.034	0.192
			TDS Receivable		0.487
			Film and Music Rights		30.500
			Sundry Debtors		0.730
			Trade Advances for Rights		4.884
			Cash and Bank balance		0.300
Total		38.297	Total		38.297

PROVISIONAL PROFIT AND LOSS ACCOUNT FOR THE PERIOD ENDED ON DECEMBER, 2010

(Rs. In Millions)

Particulars	Amount	Particulars	Amount
Advertisement	0.367	Income from Operation	12.960
Bank Charges	0.008
Conveyances	0.105
Courier Charges	0.046
Depreciation	0.225
Books and Periodicals	0.039
Music Charges	6.630
Electricity Expenses	0.028
Traveling Expenses	0.477
Insurance Charges	0.024
Internet Expenses	0.065
Legal and Professional Fees Paid	0.376
Membership Fees	0.073
Office Expenses	0.323
Printing and Stationery	0.445
Rent	0.090
Salary	1.080
Sundry Expenses	0.065
Staff Welfare	0.125
Telephone Expenses	0.056
Vnyl and Flex and Courier and Other Charges	0.012
Profit of the Period	2.301
Total	12.960	Total	12.960

PROVISIONAL PROFIT AND LOSS ACCOUNT FOR THE PERIOD ENDED ON MARCH 31, 2010

(Rs. In Millions)

Particulars	Amount	Particulars	Amount
Advertisement	0.019	Income from Operation	3.830
Bank Charges	0.001
Conveyances	0.024
Courier Charges	0.018
Depreciation	0.395
Books and Periodicals	0.001
Accounting Charges	0.018
Music Charges	1.310
Electricity Expenses	0.009
Traveling Expenses	0.072
Insurance Charges	0.004
Internet Expenses	0.015
Membership Fees	0.010
Office Expenses	0.087
Printing and Stationery	0.028
Rent	0.108
Salary	0.635
Sundry Expenses	0.079
Staff Welfare	0.090
Telephone Expenses	0.044
Profit of the Period	0.863
Total	3.830	Total	3.830

LOCAL AGENCY FURTHER INFORMATION

TRADE REFERENCE:

• Vijay Bhandari (Chartered Accountant)

Address: Kesar Building 2nd Floor, Opposite Grrtabhavan Hotel, Mumbai

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 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.44.22
UK Pound	1	Rs.71.97
Euro	1	Rs.63.23

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

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.