MIRA INFORM REPORT

Report Date :

06.05.2011

IDENTIFICATION DETAILS

Name :	AMERICAS COLLECTIBLES NETWORK, INC

Registered Office :	10001 Kingston Pike, Ste 57, Knoxville, Tn 379223339

Country :	United States

Date of Incorporation :	14.09.1993

Com. Reg. No.:	000270163

Legal Form :	Corporation for Profit

Line of Business :	Jewelry Retail

RATING & COMMENTS

MIRA’s Rating :

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

Status :	Moderate
Payment Behaviour :	Regular
Litigation :	Exists

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 – December 31, 2010

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

United States

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

GEOPOLITICS - UNITED STATES

POLITICAL DATA

ECONOMIC DATA

Form of Government: Federal

Economic Risk: Nil

Currency: USD

Branch Situation: Difficult

IDENTIFICATION

Ordered as:	Jewelery Television
Address in the order:	10001 Kingston Pike Suite 57, Knoxville IN 37922 P O Y100046131

Legal Name:	AMERICAS COLLECTIBLES NETWORK, INC
Trade Name:	JEWELRY TELEVISION, ACNTV
Legal Address	10001 KINGSTON PIKE STE 57 KNOXVILLE, TN 379223339 USA
Operative Address	190 Hayfield Drive KNOXVILLE, TN 37922 USA
Telephone:	+1 (865) 692-6000	Registration Number :	000270163
Fax:	+1 (865) 692-6000	Legal Form:	Corporation for Profit
Email:	CustomerCare@jtv.com	Registered in:	Tennessee
Website:	www.jtv.com	Date Created:	1993
Manager:	TIM MATTHEWS	Date Incorporated:	September 14th, 1993
Staff:	1200	Stock:	25,000,000
		Value:	no par value
Activity:	Jewelry retail

BANKS

Name of the Bank

WACHOVIA

BUSINESS

PRINCIPAL ACTIVITY
	Jewelry Television operates as an online retailer of fine jewelry in the United States.
Products/Services description:
	It offers jewelry, including anklets, bracelets, chains, cuff links, earrings, enhancer, fashion watches, jewelry sets, necklaces, pendants, and rings; gemstones, including alexandrite, ametrine, apatite, diamond, drusy quartz, garnet, kyanite, moonstone, opal, quartz, sapphire, spinel, tanzanite, tourmaline, and zircon; and watches.
Sales are:
	Retail
Brands:
	Jewelry Television® JTV® America’s Collectibles Network® ACN®.
Clients:
	Final customers
Operations area:
	National
The company imports from Sri Lanka, Hong Kong, and Thailand.
The company does not export
Trade References:
	The person contacted refused to provide the names of their suppliers on grounds of confidentiality.
Competitors:
	Sterling Jewelers Inc Group Health Inc Tiffany & CO
The subject employs 1200 employee(s)
PAYMENTS
	regular
LOCATION
Headquarters
	The company is headquartered at the above operative address. The legal address is the one registered at the Secretary of State of Tennessee and is that of the registered agent.

Shareholders - Manager - Related Companies

Listed at the stock exchange:
	NO
Shareholders Parent Company(ies):
	It operates as a subsidiary of Multimedia Commerce Group, Inc.
Management:
	Tim Matthews President and CEO F. Robert Hall CEO and Chairman of the Board, Multimedia Commerce Group, Inc. William C. Kouns Chief Merchandising Officer Gerald D. Sisk, Jr., G.G. Executive Vice President Charles A. Wagner, III Vice Chairman Stephen E. Roth General Counsel Crawford Wagner Chief Financial Officer Tim Engle Senior Vice President, Strategic Initiatives Harris Bagley President, Affiliate Distribution

Financials - COMMERCIAL TRENDS AND FORECAST

As a private company the subject does not publish any financial statements.

We have contacted XXX who refused to provide us any financial data on grounds of confidentiality/without knowing the name of the inquiring party.

However our financial sources could provide us with the following data.

Those figures are estimates provided by confidential banking and financial institutions working with the company.

Currency	DATE
USD	2007
Turnover	515 millions
The cash flow is	normal

Comments on the financial data: The parent company Multimedia Commerce Group, Inc. reported unaudited earnings results for the second quarter and six months ended December 31, 2010. For the quarter, revenue was $81.9 million and EBITDA was $2.6 million. For the six months, revenue was $152.4 million and EBITDA was $5.3 million.
After the recession hit in 2008, discretionary spending on items like jewelry slowed dramatically worldwide and the company faced financial difficulties. In 2010, complex and interrelated series of transactions have put Jewelry Television back on solid financial ground: with the combination of tax proceeds, reduced debt from buyout, and a new equity infusion, Jewelry Television was able to negotiate a new three-year bank credit agreement covering approximately $59 million in outstanding loans.

Legal Fillings

There are many UCC files listed with the Secretary of State of Tennessee.

On May 23, 2008, a $5 million class action lawsuit was filed in California against Jewelry Television. The suit alleges since 2003 the shopping network has sold treated gemstones without disclosing the treatment while promising buyers that these stones were rare and untreated.

On May 19, 2009, a lawsuit was filed against Jewelry Television alleging wrongful termination and age discrimination, alleging a "scheme" to get rid of employees with expensive health care costs.

The last annual report was filed on 10/04/2010.

For information:

The Uniform Commercial Code (UCC) is one of a number of uniform acts that have been promulgated in conjunction with efforts to harmonize the law of sales and other commercial transactions in all 50 states within the United States of America.

The UCC deals primarily with transactions involving personal property (movable property), not real property (immovable property).

It allows a creditor to notify other creditors about a debtor’s assets used as collateral for a secured transaction by filing a public notice (financing statement) with a particular filing office.

The Uniform Commercial Code Bureau files and maintains on financial obligations (including IRS liens) incurred by individuals (in business as a sole proprietor), business entities and corporations.

Rating

Local credit bureau gave a low credit rate.

The company is in Good Standing. This means that all local and federal taxes were paid on due date.

Final Opinion

The company has 18 years in the business.

It is a large sized American company, evolving in a difficult sector.

Profitability is low, indebtedness is high, cash is medium and payments are regular. The company had financial difficulties these last years but seems to be growing again.

Two recent public records have been found.

SUMMARY

FINANCIAL SUMMARY		DEBT COLLECTIONS AND PAYMENTS
Profitability	LOW	Public Records	YES
Indebtedness	HIGH	Payments	REGULAR
Cash	MEDIUM

APPENDIX

Person Interviewed
	Berkley
Position
	Accounting department
Comments
	The receptionist confirmed us some information; for financial and commercial data, a voicemail has been left to the person above but the call has not been returned yet.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.57
UK Pound	1	Rs.73.58
Euro	1	Rs.66.23

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	----

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%)

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.