MIRA INFORM REPORT

Report Date :

02.06.2011

IDENTIFICATION DETAILS

Name :	SONY INDIA PRIVATE LIMITED
Registered Office :	A-31 Mohan Co-Operative Industrial Estate, Mathura Road, New Delhi – 110044, Delhi
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	17.11.1994
Com. Reg. No.:	55-062781
Capital Investment / Paid-up Capital :	Rs.554.860 Millions
CIN No.: [Company Identification No.]	U74899DL1994PTC062781
TAN No.: [Tax Deduction & Collection Account No.]	DELS22931G
PAN No.: [Permanent Account No.]	AABCS1517Q
Legal Form :	Private Limited Liability Company
Line of Business :	Supplier of Electronic Equipment, Components and Accessories
No. of Employees :	4000 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Aa (72)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 10400000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established subsidiary of Sony, Japan. Available information indicates high financial responsibility of the company. Trade relations are fair. Payments are usually correct and as per commitment. The company can be regarded as a promising business in a medium to long-term.

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

LOCATIONS

Registered Office :	A-31 Mohan Co-Operative Industrial Estate, Mathura Road, New Delhi – 110044, Delhi, India
Tel. No.:	91-11-66006600 / 66006650
Fax No.:	91-11-26959141 / 26959143
E-Mail :	sanjay.bhargava@ap.sony.com
Website :	http://www.ap.sony.com
Sony Service Center :	Locate At: New Delhi Guwahati Kolkata Ranchi Chandigarh Ghaziabad Jaipur Lucknow Gurgaon Bangalore Mangalore Chennai Cochin Coimbatore Vishakhapatnam Mumbai Pune

DIRECTORS

As on 17.08.2010

Name :	Mr. Narihiko Uemura
Designation :	Director
Address :	3-4-8 Arae Sawara-KU, Fukuoka-shi, Fukuoka, Japan
Date of Birth/Age :	07/08/1957
Date of Appointment :	30/04/2009
Name :	Mr. Masaru Tamagawa
Designation :	Managing Director
Address :	C-11, 2^nd Floor, Westend Colony, New Delhi, India
Date of Birth/Age :	28.06.1960
Date of Appointment :	22.01.2007
Name :	Mr. Keki Bomi Dadiseth
Designation :	Director
Address :	8A, Maneck, L. D. Ruparel Marg, Malabar Hill, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	20.12.1945
Date of Appointment :	09.07.2009

KEY EXECUTIVES

Name :	Mr. Sanjay Bhargava
Designation :	Secretary
Address :	D-7/7052, Vasant Kunj, New Delhi – 110070, Delhi, India
Date of Birth/Age :	09.03.1964
Date of Appointment :	21.12.1994

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 17.08.2010

Names of Shareholders	No. of Shares
Sony Holding (Asia) B.V., The Netherlands	55486018
Sony Gulf FZE, Dubai	1
Total	55486019

As on 17.08.2010

Category	Percentage of Holding
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100
Total	100

BUSINESS DETAILS

Line of Business :

Supplier of Electronic Equipment, Components and Accessories

Products :

Item Code No. (ITC Code)	85287211 To 85287219
Product Description	Colour Television
Item Code No. (ITC Code)	85271300
Product Description	Audio Hi-Fi Components
Item Code No. (ITC Code)	85258020
Product Description	Digital Camera (DSC)
Item Code No. (ITC Code)	85258030
Product Description	Video Camera Recorders

• Television and Projector
• Experience quality like no other with Sony’s diverse range of Televisions and Projectors, designed to enhance your viewing pleasure, fit your preferences and offers you ultimate home entertainment.
• 
• Home Video
• Step into a world of amazing images and sound with Sony’s Home Video systems that make the perfect partners to your HDTV or home-theatre system to create a total home entertainment experience.
• 
• Home Audio
• With compact designs that pack a punch, you can now enter audio nirvana with our Home Audio systems that deliver not just quality audio, but also a horde of audio entertainment choices.
• 
• Home Theatre System
• Immerse in a home entertainment environment with Sony’s Home Theatre Systems that are stylishly designed with room-friendliness in mind, allowing for heavenly sound and images in your favourite room.
• 
• Digital Photography
• Unleash your inner photographer with Sony’s extensive range of Digital Imaging devices that can fit easily into your lifestyle, offering quality, convenience and not to mention aesthetic excellence.
• 
• Digital SLR
• Take your photography skills to the next level and go beyond limits by getting a Sony digital SLR camera, which contains powerful features that create images to complement your photography skills.
• 
• Video Camera
• It’s time to keep up with technology and go digital with your video recordings. With Sony’s range of Handycam® Camcorders and accessories, you can have quality that will last you a lifetime.
• 
• Computer and PeripheralsCombining form, function and the latest in technology, Sony provides a range of IT and computing devices, storage media, accessories and peripherals to better serve all your IT needs.

• Portable Audio
• Created with music lovers in mind, Sony offers an extensive range of portable audio players & audio accessories, developed to produce high-quality sound that will suit your preference and lifestyle.
• Game
• Enter the realm of gaming with Sony’s revolutionary video console PlayStation® series, its handheld counterpart, PlayStation®Portable, and the diverse genres of gaming titles for endless hours of fun.
• Mobile Phone
• Understanding that mobile phones are an integral part of our daily lifestyle, Sony Ericsson is constantly developing mobile phones with new exciting features so that you won’t ever be bored with it.
• In-Car Entertainment
• Make you car journey a delightful one with Sony’s vast offerings of in-car entertainment, ranging from audio, visual to the necessary accessories that just make your whole trip just a little more fun.
• Storage and Recording Media
• If you want to keep your memories or transfer important documents on a reliable storage media, Sony offers you a wide-ranging array of media formats to suit all your storage needs.

• Battery and Charger
• Sony’s batteries, like its products, are made to be durable and reliable, delivering the best performance with a long life-span. To offer an even longer lifespan is our battery and charger combo.
• Accessories

GENERAL INFORMATION

No. of Employees :

4000 [Approximately ]

Bankers :

The Municipal Co-operative Bank Limited, Mumbai, Maharashtra, India

Facilities :

Unsecured Loans :	As on 31.03.2010 Rs. in Millions	As on 31.03.2009 Rs. in Millions
Working Capital Loans – from Banks	0.000	260.000
Cash Credit – from Banks	159.224	230.049
Total	159.224	490.049

Banking Relations :	-
Auditors :
Name :	Price Waterhouse Chartered Accountants
Address :	Building 8, 7th and 8th Floor, Tower B, DLF Cyber, Gurgaon – 122002, Haryana, India
Ultimate Holding Company:	Sony Corporation Japan
Holding Company:	Sony Holding (Asia) BV, Netherlands
Fellow Subsidiaries :	Sony BMG Music Entertainment India Private Limited Sony Pictures Entertainment Inc. Sony Pictures Releasing of India Limited Sony Ericsson Mobile Communication, AB Sony Electronics Inc. Sony of Canada Limited Sony Corporation of Hang Kong Limited Sony Australia Limited Sony Technology (Thailand) Company Limited (Ayutaya) Sony EMCS (Malaysia) Sdn Bhd. Malaria Finance Center [Division of Sony EMCS (Malaysia) Sdn. Bhd.] Sony United Kingdom Limited Son" Gulf FZE Sony Electronics (Singapore) Pte. Limited Sony Electronics Asia Pacific Pte. Limited Sony Latin America Inc. Sony South Africa (Proprietory) Limited Sony Technology (Thailand) Company Limited (Chonburi) Sony Computer Entertainment Europe Limited Sony Philippines, Inc. Sony Global Treasury Services Sony DADC US Inc. Sony Corp. of America Sony Chemicals Singapore Pte. Limited Sony Supply Chain Solutions, Inc. Sony Supply Chain Solutions (Korea) Limited Sony Supply Chain Solutions (China) Limited sony EMCS Corporation Visionarts Inc. Sony New Zealand Limited Sony Espana S. A. Sony Taiwan Limited

CAPITAL STRUCTURE

As on 17.08.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
60,000,000	Equity Shares	Rs.10/- Each	Rs.600.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
55,486,019	Equity Shares	Rs.10/- Each	Rs.554.860 Millions

Notes: Out of the above 55486018 shares are held by Sony Holding (Asia) B. V. Netherlands, the holding company.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		554.860	554.860	554.860
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2060.957	2033.317	2111.337
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2615.817	2588.177	2666.197
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		159.224	490.049	221.986
TOTAL BORROWING		159.224	490.049	221.986
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2775.041	3078.226	2888.183
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		282.111	211.403	240.989
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.053	0.053	0.053
DEFERREX TAX ASSETS		242.392	230.179	207.331
Capital Advance		7.629	0.822	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3819.588	2901.199	3624.351
	Sundry Debtors	1494.197	1279.931	1106.233
	Cash & Bank Balances	3585.388	300.438	1654.271
	Other Current Assets	1316.469	1756.119	703.130
	Loans & Advances	231.706	641.838	603.462
Total Current Assets		10447.348	6879.525	7691.447
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7104.062	3282.902	3689.501
	Other Current Liabilities	462.888	340.568	261.740
	Provisions	637.542	620.286	1300.396
Total Current Liabilities		8204.492	4243.756	5251.637
Net Current Assets		2242.856	2635.769	2439.810
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2775.041	3078.226	2888.183

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		TOTAL (A)	38744.000	36671.000	30978.000
Less	EXPENSES
		TOTAL (B)	37458.000	35888.000	28741.000
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1286.000	783.000	2237.000
Less	FINANCIAL EXPENSES (D)		33.000	48.000	34.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1253.000	735.000	2203.000
Less/ Add	DEPRECIATION/ AMORTISATION (F)		102.000	113.000	90.000
	PROFIT BEFORE TAX (E-F) (G)		1151.000	622.000	2113.000
Less	TAX (H)		435.000	233.000	744.000
	PROFIT AFTER TAX (G-H) (I)		716.000	389.000	1369.000
Less	APPROPRIATIONS
		Transfer to General Reserve	72.000	39.000	137.000
		Interim Dividend	588.000	399.000	416.000
		Dividend on Distribution Tax	100.000	68.000	71.000
	BALANCE CARRIED TO THE B/S		(44.000)	(117.000)	745.000
	Earnings Per Share (Rs.)		12.90	7.02	-

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.85	1.06	4.42
Return on Total Assets (PBT/Total Assets}	(%)	10.73	8.76	26.64
Return on Investment (ROI) (PBT/Networth)		0.44	0.24	0.79
Debt Equity Ratio (Total Liability/Networth)		3.20	1.83	2.05
Current Ratio (Current Asset/Current Liability)		1.27	1.62	1.46

LOCAL AGENCY FURTHER INFORMATION

Review of Operations

The audited results of the Company reveal that during FY09, total sales increased by 6%. After the downturn in global economy Company has focused on stability of operations, ensuring smooth channel Stock movement and improvement in operations quality. The company profit before Depreciation and Tax of Rs.1253 Millions is higher in comparison with previous year’s profit of Rs.735 Millions. The company recorded a profit after tax of Rs.716 millions in comparison with previous year’s Profit of Rs. 389 millions.

The company has.19 Branch Offices and Software Centers, where 1782 employees are positioned, besides the Sales and Service network of over 1500 Multi Brand counters, 304 Designated Shops, 6 Service Centers, 14 touch points, 5 Service Factories and 196 Authorized Service Centers.

Fixed Assets:

Tangible:

• Office Equipment
• Furniture and Fittings
• Computers / Data Processing Equipments
• Leasehold Improvements
• 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 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.44.89
UK Pound	1	Rs.73.84
Euro	1	Rs.64.76

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		72

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.