MIRA INFORM REPORT

Report Date :

11.11.2011

IDENTIFICATION DETAILS

Name :	MATTEL TOYS (INDIA) PRIVATE LIMITED
Registered Office :	Phoenix House, B-Wing, 462, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	17.07.1986
Com. Reg. No.:	11-040426
Capital Investment / Paid-up Capital :	Rs.1436.664 Millions
CIN No.: [Company Identification No.]	U36940MH1986PTC040426
TAN No.: [Tax Deduction & Collection Account No.]	NGPM00760E / MUMM39918E
PAN No.: [Permanent Account No.]	AACCM2563P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Trader and Importer of all types of Toys.
No. of Employees :	150 (Approximately) (In Office + In Factory)

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 1798000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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

Name :	Mr. Manoj Kumar
Designation :	Secretary
Contact No.:	91-22-66613823
Date :	10.11.2011

LOCATIONS

Registered Office :	Phoenix House, B-Wing, 462, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013, Maharashtra, India
Tel. No.:	91-22-66613800 / 66613823
Fax No.:	91-22-66613900
E-Mail :	manoj.kumar@mattel.com karun.gera@mattel.com jean-christophe.pean@mattel.com
Website :	http://www.mattel.com
Location :	Owned
Factory :	I-39, Hingna Road, MIDC, Nagpur, Maharashtra, India

DIRECTORS

As on 30.09.2010

Name :	Mr. Brian Francis Oconnor
Designation :	Director
Address :	716, Garnet Street, Redondo Beach, California, 90277, USA
Date of Birth/Age :	22.05.1961
Date of Appointment :	26.05.2003
DIN No.:	00577840
Name :	Mr. Jerome Leonard Bossick
Designation :	Director
Address :	16361, Maruffa Circle Huntington Beach, California, 92649, USA
Date of Birth/Age :	24.02.1959
Date of Appointment :	21.09.2004
DIN No.:	00577963
Name :	Mr. Kevin Morgan Farr
Designation :	Director
Address :	1420 Via Castilia Palos Verdes Estates, California, 90274, USA
Date of Birth/Age :	20.12.1957
Date of Appointment :	16.08.2000
DIN No.:	00579681
Name :	Mr. Robert John Normile
Designation :	Director
Address :	7130 La Presa Drive, Los Angeles, California,90068, USA,
Date of Birth/Age :	26.07.1959
Date of Appointment :	26.05.2003
DIN No.:	00579716
Name :	Mr. Prashant Bapna
Designation :	Director
Address :	401, Midway Apartments, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400 025, Maharashtra, India
Date of Birth/Age :	29.05.1973
Date of Appointment :	13.12.2008
DIN No.:	02482920
Name :	Mr. Karun Gera
Designation :	Director
Address :	701A, Lady Ratan Tower, Dainik Shivneri Marg, Worli, Mumbai – 400 013, Maharashtra, India
Date of Birth/Age :	12.07.1970
Date of Appointment :	13.12.2008
DIN No.:	02483776
Name :	Mr. Jean Christophe Michel Pean
Designation :	Director
Address :	House No.B-10, Reglia Bay 88 Wongmokok Road, Stanley, Hong Kong
Date of Birth/Age :	17.08.1964
Date of Appointment :	13.12.2009
DIN No.:	02486572

KEY EXECUTIVES

Name :	Mr. Manoj Kumar
Designation :	Secretary
Address :	304, Prakruti CHS, Plot 3, Sector 21, Kharghar, Navi Mumbai – 410 210, Maharashtra, India
Date of Birth/Age :	21.05.1970
Date of Appointment :	22.09.2003
PAN No.:	ANLPS7382R

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders (Equity Shares)	No. of Shares
Mattel Inc., USA	16035115
Mattel Inc., USA jointly with Chris W. White	1
Mattel International Holdings, B.V.	15406286
Total	31441402

Names of Shareholders (Preference Shares)	No. of Shares
Mattel Inc., USA	112225000
Total	112225000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Trader and Importer of all types of Toys.

Products :

Product Description	Item Code No.
Dolls	9502
Toys	9503

• Barbie Dolls and Toys
• Diecast Cars and Plyasets
• Disney Movie Toys
• Fijits Friends and Mindflex
• Monster High Dolls and Toys
• Baby Gift and Preschool Toys
• Toy Cars and Toy Trucks

Imports :

Products :

Toys

Countries :

China

Terms :

Selling :

Cash and Credit (30 Days)

Purchasing :

L/C, Cash and Credit (30 Days)

GENERAL INFORMATION

Customers :	Wholesalers, Retailers and End Users
No. of Employees :	150 (Approximately) (In Office + In Factory)
Bankers :	Not Available

Banking Relations :	--
Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Address :	252, Veer Savarkar Marg, Shivaji Park, Dadar, Mumbai – 400013, Maharashtra, India
PAN.:	AABCP9181H
Holding Company :	Mattel Inc. (Holds 51% of the equity share capital) Address : 333, Continental Boulevard, El Segundo, CA – 90245 (USA)
Fellow Subsidiaries/ Affiliates :	Mattel Europe, BV Mattel HK Limited P. T. Metal Indonesia Mattel Europe Holdings Limited * Mattel Bangkok Limited * Fisher Price Inc. * Mattel UK * Mattel Poland Sp. ZO.O Mattel Diecast Company Limited Mattel Asia Pacific Sourcing Limited Mattel East Asia Limited Mattel Malaysia S/B Mattel Continental Asia S/B * Mattel Pty. Limited (Australia) * Latin America Mattel Mabamex, S.A. De C.V. * Radica (Macao Commercial Offshore) Limited * * No transactions during the year
Related Parties :	Mattel International Holdings, B.V. (Major Shareholders – Holds 49% of the equity share capital)

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
31990000	Equity Shares	Rs.10/- each	Rs.319.900
115010000	3% Optionally Convertible Non Cumulative Redeemable Preference Shares	Rs.10/- each	Rs.1150.100 Millions
	Total		Rs.1470.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
31441402	Equity Shares	Rs.10/- each	Rs.314.414 Millions
112225000	3% Optionally Convertible Non Cumulative Redeemable Preference Shares	Rs.10/- each	1122.250 Millions
	Total		Rs.1436.664 Millions

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		1436.664	1436.664	1436.664
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.750	0.750	0.750
4] (Accumulated Losses)		(987.944)	(1115.971)	(1156.331)
NETWORTH		449.470	321.443	281.083
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		449.470	321.443	281.083
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.183	9.621	10.297
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	183.060	109.959	112.613
	Sundry Debtors	171.290	187.412	127.060
	Cash & Bank Balances	198.024	111.661	110.910
	Other Current Assets	1.283	2.808	17.734
	Loans & Advances	68.754	65.199	55.906
Total Current Assets		622.411	477.039	424.223
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	136.511	139.298	126.579
	Other Current Liabilities	11.396	5.936	7.053
	Provisions	31.217	19.983	19.805
Total Current Liabilities		179.124	165.217	153.437
Net Current Assets		443.287	311.822	270.786
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		449.470	321.443	281.083

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	739.984	642.766	522.392
		Licensing Income	33.940	31.275	29.095
		Other Income	9.864	20.580	19.090
		TOTAL	783.788	694.621	570.577
Less	EXPENSES
		Cost of Goods Sold	370.989	387.798	255.591
		Employee Cost	63.618	67.864	67.207
		Other Expenses	195.313	188.410	201.662
		TOTAL	629.920	644.072	524.460
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		153.868	50.549	46.117
Less/ Add	DEPRECIATION/ AMORTISATION		3.841	3.789	3.738
	PROFIT BEFORE TAX		150.027	46.760	42.379
Less	TAX		22.000	6.400	4.343
	PROFIT AFTER TAX		128.027	40.360	38.036
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(1117.787)	(1158.147)	(1196.267)
Add	Adjustment in acceptance with transactional provision in Accounting Slandered		0.000	0.000	0.084
	BALANCE CARRIED TO THE B/S		(989.760)	(1117.787)	(1158.147)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	18.941	34.696	23.520
		Reimbursement of Expenses	4.657	4.556	9.930
		Licensing Income	0.000	1.368	0.884
	TOTAL EARNINGS		23.598	40.620	34.334
	IMPORTS
		Raw Materials and Components	18.569	15.086	11.134
		Toys and Traded Goods	362.345	273.616	177.424
	TOTAL IMPORTS		380.914	288.702	188.558
	Earnings Per Share (Rs.)		4.07	1.28	1.21

Particulars	31.03.2011
Sales Turnover (Approximately)	More than 900.000

Expected Sales (2011-2012): More than Rs.1200.000 Millions

The above information has been parted by Mr. Manoj Kumar.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	16.33	5.81	6.67
Net Profit Margin (PBT/Sales)	(%)	20.27	7.27	8.11
Return on Total Assets (PBT/Total Assets}	(%)	23.87	9.61	9.75
Return on Investment (ROI) (PBT/Networth)		0.33	0.15	0.15
Debt Equity Ratio (Total Liability/Networth)		0.40	0.51	0.55
Current Ratio (Current Asset/Current Liability)		3.47	2.89	2.76

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

(Rs. In Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors
- Micro and Small Enterprise	0.000	0.000	0.000
- Others	136.511	139.298	126.579
	136.511	139.298	126.579

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	YES
2) Locality of the firm	YES
3) Constitutions of the firm	YES
4) Premises details	YES
5) Type of Business	YES
6) Line of Business•	YES
7) Promoter’s background	NO
8) No. of employees	YES
9) Name of person contacted	YES
10) Designation of contact person	YES
11) Turnover of firm for last three years	YES
12) Profitability for last three years	NO
13) Reasons for variation <> 20%	NO
14) Estimation for coming financial year	YES
15) Capital in the business	YES
16) Details of sister concerns	NO
17) Major suppliers	NO
18) Major customers	YES
19) Payments terms	YES
20) Export / Import details (if applicable)	YES
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	NO
24) Banking facility details	--
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	NO
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

OVERALL PERFORMANCE AND OUTLOOK:

During the year ended 31^st March 2010 the Company has made a profit (after tax) of Rs.128.030 millions which almost three times of the profit of the previous year. The turnover of the Company has also increased by around thirteen percent from Rs.694.620 millions to Rs.783.790 millions.

During the year, the Company continued to consolidate its leadership position in the Indian toy industry and continued its investments in building its various brands across the country through advertisements and other related activities.

FIXED ASSETS;

· Buildings

· Plant and Machinery

· Computers

· Furniture and Fixtures

· 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: 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.49.78
UK Pound	1	Rs.80.11
Euro	1	Rs.68.82

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		32

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.