MIRA INFORM REPORT

Report Date :

23.06.2011

IDENTIFICATION DETAILS

Name :	CINERAMA PRIVATE LIMITED
Registered Office :	Ground Floor, Amrit Chhaya, Main Avenue, Santacruz West, Mumbai-400020, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	17.11.1954
Com. Reg. No.:	11-009418
Capital Investment / Paid-up Capital :	Rs.0.300 Million
CIN No.: [Company Identification No.]	U33200MH1954PTC009418
Legal Form :	Private Limited Liability Company
Line of Business :	Trader and Dealer of Electronics Home Theater, Speakers and etc.
No. of Employees :	Information denied by the management.

RATING & COMMENTS

MIRA’s Rating :

A (59)

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 760000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track records. Financial position of the company appears to be sound. 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.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Sachin
Designation :	Accountant
Date :	23.06.2011

LOCATIONS

Registered Office :	Ground Floor, Amrit Chhaya, Main Avenue, Santacruz West, Mumbai-400020, Maharashtra, India
E-Mail :	accounts@cineramagroup.com udupa@cineramagroup.com
Area :	Owned
Corporate / Head Office :	16-A, Industrial Suburb, 2^nd Stage, Yeshwantpur, Tumkur Road, Bangalore-560022, Karnataka, India
Tel. No.:	91-80-23370515
Fax No.:	91-80-23370222
E-Mail :	cinebels@cineramagroup.com sales@cineramagroup.com
Showroom:	245 Waterfield Road, Asudha Kutir CHS, Opposite Sony Centre, Bandra (W), Mumbai-400050, Maharashtra, India
Tel No.:	91-22-32545260
Area :	Rented

DIRECTORS

As on 10.09.2010

Name :	Mr. Sanjay Agarwal
Designation :	Director
Address :	No. 10, Jaya Mahal Main Road, Bangalore-560046, Karnataka, India
Date of Birth/Age :	22.01.1958
Date of Appointment :	16.08.1980
Election Commission Identity Card No.:	KT/12/087/288006
Name :	Mrs. Jaya Agarwal
Designation :	Director
Address :	No. 10, Jaya Mahal Main Road, Bangalore-560046, Karnataka, India
Date of Birth/Age :	17.11.1958
Date of Appointment :	01.02.1984
Election Commission Identity Card No.:	KT/12/087/288008
Name :	Chanda Seth
Designation :	Director
Address :	B-2/11, Vasanth Vihar, New Delhi-110057, India
Date of Birth/Age :	09.05.1951
Date of Appointment :	04.07.1994

KEY EXECUTIVES

Name :	Mr. Sachin
Designation :	Accountant
Name :	Mr. Rama Chandra Udupa
Designation :	Finance and Operation Head Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 10.09.2010

Names of Shareholders	No. of Shares
Laj Agarwal	450
Sanjay Agarwal	1281
Jaya Agarwal	630
Arjun Agarwal	392
Avantika Agarwal	242
Cine Fones (Delhi) Private Limited, India	5
Total	3000

As on 10.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	99.83
Other	0.17
Total	100.00

BUSINESS DETAILS

Line of Business :

Trader and Dealer of Electronics Home Theater, Speakers and etc.

Products :

Product Description	Item Code
Cinematographic Sound and Projection Equipment	90071102

Agencies Held :

• Jamo – Speakers (Denmark)
• Klipsch – Home Theater (USA)

Imports :

Products :

Speakers and Home Theater

Countries :

• Denmark
• USA

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Cinema Projection Equipment with Amplifier Systems	Qty in Nos.	150	--
Complete Cinema Projects	Qty in Nos.	--	1

GENERAL INFORMATION

No. of Employees :

Information denied by the management.

Bankers :

Royal Bank of Scotland, Mumbai, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
From Bank (Secured by hypothecation of building subject to creation of charge)	4.186	27.701
Total	4.186	27.701

Banking Relations :	--
Auditors :
Name :	Brahmayya and Company Chartered Accountant
Address :	Khivraj Mansion, 10/2, Kasturba Road, Bangalore-560001, Karnataka, India
Tel No.:	91-80-22274551/22274552
Fax No.:	91-80-22212437
Email:	srinivas@brahmayya.com admin@brahmayyabir.com

CAPITAL STRUCTURE

As on 10.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
5000	Equity Shares	Rs.100/- each	Rs.0.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3000	Equity Shares	Rs.100/- each	Rs.0.300 Million

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		0.300	0.300	0.300
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		189.724	143.474	164.557
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		190.024	143.774	164.857
LOAN FUNDS
1] Secured Loans		4.186	27.701	0.130
2] Unsecured Loans		0.000	0.000	0.500
TOTAL BORROWING		4.186	27.701	0.630
DEFERRED TAX LIABILITIES		0.000	1.125	0.000
TOTAL		194.210	172.600	165.487
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		14.436	16.621	19.359
Capital work-in-progress		26.320	21.527	0.000
INVESTMENT		117.008	94.578	95.025
DEFERREX TAX ASSETS		0.871	0.716	1.571
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	35.066	42.601	42.844
	Sundry Debtors	7.345	6.735	15.913
	Cash & Bank Balances	4.260	8.889	16.502
	Other Current Assets	4.533	3.330	6.053
	Loans & Advances	3.817	4.850	3.759
Total Current Assets		55.021	66.405	85.071
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.419	1.041	2.975
	Other Current Liabilities	17.994	25.397	25.316
	Provisions	1.033	0.809	7.248
Total Current Liabilities		19.446	27.247	35.539
Net Current Assets		35.575	39.158	49.532
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		194.210	172.600	165.487

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales	103.784	90.517	103.177
		Repairs and Service	3.097	2.585	2.074
		Other Income	46.561	9.391	79.746
		TOTAL	153.442	102.493	184.997
Less	EXPENSES
		Office Expenses
		Administrative Expenses	96.964	114.820	96.183
		Advertising Expenses
		TOTAL	96.964	114.820	96.183
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		56.478	(12.327)	88.814
Less/ Add	DEPRECIATION/ AMORTISATION		2.369	3.030	2.557
	PROFIT BEFORE TAX		54.109	(15.357)	86.257
Less	TAX		7.820	5.804	16.813
	PROFIT AFTER TAX		46.289	(21.161)	69.444
Add / Less	PRIOR YEAR EXPENSES/ INCOME		(0.039)	(0.079)	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		86.090	107.172	51.057
Less	APPROPRIATIONS
		Transfer to General Reserve
		Proposed Interim Dividend	NA	NA	13.329
		Tax on Dividend
		Proposed Final Dividend
	BALANCE CARRIED TO THE B/S		132.340	86.090	107.172
	Earnings Per Share (Rs.)		15430	(7054)	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	30.17	(20.65)	37.54
Net Profit Margin (PBT/Sales)	(%)	52.14	(16.96)	83..60
Return on Total Assets (PBT/Total Assets}	(%)	77.90	(18.50)	82.60
Return on Investment (ROI) (PBT/Networth)		0.28	(0.11)	0.52
Debt Equity Ratio (Total Liability/Networth)		0.12	0.38	0.22
Current Ratio (Current Asset/Current Liability)		2.83	2.44	2.39

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors
Others	0.419	1.041	2.975

Note: The registered office of the company has been shifted Metro House, 4^th Floor, M.G. Road, Mumbai-400020, Maharashtra, India from to the present address w.e.f. 03.05.2007

Operations:

During the year demand for Cinema Equipment and Home Cinema products went up considerably. Efforts are being made to promote sales with emphasis towards spreading into smaller rural areas.

Trade References:

• Jamo – Speakers (Denmark)
• Klipsch – Home Theater (USA)

Fixed Assets:

• Goodwill
• Land
• Building
• Plant and Machinery
• Furniture and Fixtures
• Vehicles
• Office Equipments

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 records 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 t: None

5] 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.44.82
UK Pound	1	Rs.72.84
Euro	1	Rs.64.58

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--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		59

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.