MIRA INFORM REPORT

Report Date :

13.09.2011

IDENTIFICATION DETAILS

Name :	INOX LEISURE LIMITED
Registered Office :	ABS Towers, Old Padra Road, Vadodara – 390 007, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.11.1999
Com. Reg. No.:	04-44045
Capital Investment / Paid-up Capital :	Rs.615.418 millions
CIN No.: [Company Identification No.]	L92199GJ1999PLC044045
TAN No.: [Tax Deduction & Collection Account No.]	DELI03037G / BLRI01880E / MUMI04008E
PAN No.: [Permanent Account No.]	AAACI6063J
Legal Form :	Public limited liability company. The company’s shares are listed on stock exchanges.
Line of Business :	National chain of world class multiplex cinema theatres under the brand name - INOX.
No. of Employees :	1500 Approximately

RATING & COMMENTS

MIRA’s Rating :

A (63)

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 13000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments terms 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

Name :	Mr. Jatin Gosalia
Designation :	GM Finance
Date :	06.09.2011

LOCATIONS

Registered Office :	ABS Towers, Old Padra Road, Vadodara – 390 007, Gujarat, India
Tel. No.:	91-265-2330057
Fax No.:	91-265-2310312
E-Mail :	jatin@inox.co.in
Website :	http://www.inox.co.in
Location :	Owned by Group Companies
Corporate Office :	5th Floor, Viraj Towers, Next to Andheri Flyover, Western Express Highway, Andheri (E), Mumbai - 400 093, Maharashtra, India
Tel No.:	91-22-40626900
Fax No.:	91-22-40626999
E-Mail :	contact@inox.co.in
Cinema Theatre :	45 Theatre all over the India

DIRECTORS

As on 31.03.2011

Name :	Mr. Pavan Jain
Designation :	Non Executive Director
Date of Birth/Age :	60 Years
DIN No.:	00030098

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U74899DL1972PTC110957	Inox Chemicals Private Limited	Director	12-12-73	12-12-73	-	Active	NO
2	U99999GJ1976PLC018945	Inox India Limited	Director	16-04-79	16-04-79	-	Active	NO
3	U74899DL1982PTC013707	Siddhomal Investments Private Limited	Director	30-06-82	30-06-82	-	Active	NO
4	U74899DL1986PTC026403	Siddhomal Air Products Private Limited	Director	16-12-86	16-12-86	-	Active	NO
5	L24110GJ1987PLC009362	Gujarat Fluorochemicals Limited	Director	04-02-87	04-02-87	-	Active	NO
6	U74899DL1990PTC039122	Devansh Trading And Finance Private Limited	Director	06-02-90	06-02-90	-	Active	NO
7	U74899DL1990PTC039270	Sitashri trading and finance private limited.	Director	19-02-90	19-02-90	-	Active	NO
8	U74899DL1990PTC039312	Siddhapavan Trading And Finance Private Limited	Director	22-02-90	22-02-90	-	Active	NO
9	U65910MH1995PLC085703	Inox Leasing And Finance Limited	Managing director	17-02-95	17-02-95	-	Active	NO
10	U24111DL1996PTC081217	Devansh Gases Private Limited	Director	16-08-96	16-08-96	-	Active	NO
11	L92199GJ1999PLC044045	Inox Leisure Limited	Director	09-11-99	09-11-99	-	Active	NO
12	U40100MH1997PLC106044	Vindhyachal Hydro Power Limited	Director	05-06-00	05-06-00	-	Active	NO
13	U74899DL2000PLC107479	Humsay i Global services Limited	Director	29-08-00	29-08-00	15-11-07	Active	YES
14	U28120MH2003PLC140814	Refron Cylinders Limited	Director	10-06-03	10-06-03	-	Dormant	NO
15	U74899DL1988PTC033823	Rajni Farms Private Limited	Director	28-02-04	28-02-04	-	Active	NO
16	U24999MH1963PLC012625	Inox Air Products Limited	Managing director	01-04-09	17-10-04	-	Active	NO
17	U45200DL2007PTC159796	Inox Infrastructure Private Limited	Director	27-02-07	27-02-07	-	Active	NO
18	U65191PN1943PLC007308	The Ratnakar Bank Limited	Additional director	28-09-07	28-09-07	31-10-07	Active	NO
19	U31901HP2009PLC031083	Inox Wind Limited	Director	09-04-09	09-04-09	25-04-09	Active	NO
20	L92490MH1999PLC122381	Fame India Limited	Director	22-09-10	28-02-10	-	Active	NO
21	U74140DL2006PTC156453	Inox International Private Limited	Director	20-07-11	06-10-10	-	Active	NO
22	U40100GJ2010PLC062869	Inox Renewables Limited	Director	25-06-11	11-11-10	-	Active	NO

Name :	Mr. Vivek Jain
Designation :	Non Executive Director
Date of Birth/Age :	55 Years
DIN No.:	00029968

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24999MH1963PLC012625	Inox Air Products Limited	Director	31-12-84	31-12-84	-	Active	NO
2	U74899DL1972PTC110957	Inox Chemicals Private Limited	Director	29-11-85	29-11-85	-	Active	NO
3	U74899DL1986PTC026403	Siddhomal Air Products Private Limited	Director	16-12-86	16-12-86	-	Active	NO
4	L24110GJ1987PLC009362	Gujarat Fluorochemicals Limited	Managing director	01-01-08	04-02-87	-	Active	NO
5	U74899DL1982PTC013707	Siddhomal Investments Private Limited	Director	31-03-87	31-03-87	-	Active	NO
6	U74899DL1990PTC039122	Devansh Trading And Finance Private Limited	Director	06-02-90	06-02-90	-	Active	NO
7	U74899DL1990PTC039270	Sitashri Trading And Finance Private Limited.	Director	19-02-90	19-02-90	-	Active	NO
8	U74899DL1990PTC039312	Siddhapavan Trading And Finance Private Limited	Director	22-02-90	22-02-90	-	Active	NO
9	U65910MH1995PLC085703	Inox Leasing And Finance Limited	Director	17-02-95	17-02-95	-	Active	NO
10	U24111DL1996PTC081217	Devansh Gases Private Limited	Director	16-08-96	16-08-96	-	Active	NO
11	U63040WB1998PLC087235	Travair Connections Limited	Director	01-07-98	01-07-98	-	Active	NO
12	L92199GJ1999PLC044045	Inox Leisure Limited	Director	09-11-99	09-11-99	-	Active	NO
13	U40100MH1997PLC106044	Vindhyachal Hydro Power Limited	Director	05-06-00	05-06-00	-	Active	NO
14	U74899DL2000PLC107479	Humsay i Global services Limited	Director	29-08-00	29-08-00	20-12-07	Active	YES
15	U74899DL1988PTC033823	Rajni Farms Private Limited	Director	28-02-03	28-02-03	-	Active	NO
16	U28120MH2003PLC140814	Refron Cylinders Limited	Director	10-06-03	10-06-03	-	Dormant	NO
17	U74140DL2004PTC130113	Inox Dpnc Outsourcing Services Private Limited	Director	20-10-04	20-10-04	-	Active	NO
18	U74999DL2004PTC131077	Kingston Smith Inox - Dc Outsourcing Private Limited	Director	08-12-04	08-12-04	-	Active	NO
19	U74140DL2006PTC156453	Inox International Private Limited	Director	12-12-06	12-12-06	-	Active	NO
20	U45200DL2007PTC159796	Inox Infrastructure Private Limited	Director	27-02-07	27-02-07	-	Active	NO
21	U99999GJ1976PLC018945	Inox India Limited	Director	14-06-07	14-06-07	-	Active	NO
22	U45209MH2007PTC173174	Megnasolace City Private Limited	Director	31-01-08	31-01-08	-	Active	NO
23	U31901HP2009PLC031083	Inox Wind Limited	Director	09-04-09	09-04-09	25-04-09	Active	NO
24	U40100GJ2010PLC062869	Inox Renewables Limited	Director	25-06-11	11-11-10	-	Active	NO

Name :	Mr. Deepak Asher
Designation :	Non Executive Director
Name :	Mr. Siddharth Jain
Designation :	Non Executive Director
Name :	Mr. Haigreve Khaitan
Designation :	Independent Director
Name :	Mr. Sanjeev Jain
Designation :	Independent Director
Name :	Mr. Amit Jatia
Designation :	Independent Director
Date of Birth/Age :	44 Years
DIN No.:	00016871

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U51900MH1990PTC059140	Saubhagya Impex Private Limited	Director	04-12-90	04-12-90	-	Active	NO
2	U17100MH1988PTC049986	Anand Veena Twisters Private Limited	Director	20-12-90	20-12-90	-	Active	NO
3	U51900MH1990PTC059142	Horizon Impex Private Limited	Director	25-10-93	25-10-93	-	Active	NO
4	U51900MH1990PTC059138	Subh Ashish Exim Private Limited	Director	25-10-93	25-10-93	-	Active	NO
5	U51900MH1994PTC078922	Achal Exim P Limited	Director	13-06-94	13-06-94	-	Active	NO
6	U51900MH1994PTC078943	Akshay Ayush Impex Private Limited	Director	02-01-95	02-01-95	-	Active	NO
7	U51900MH1994PTC079128	ACACIA Impex P Limited	Director	02-01-95	02-01-95	-	Active	NO
8	U51900MH1994PTC079360	Vandeep Trade Links Private Limited	Director	02-01-95	02-01-95	-	Active	NO
9	U55202MH1995PTC089619	Triple A Foods Private Limited	Director	16-06-95	16-06-95	-	Active	NO
10	U55101MH1995PTC091422	Hardcastle Restaurants Private Limited	Additional director	22-12-10	09-08-95	-	Active	NO
11	U99999MH1995PTC091929	Vista Processed Foods Private Limited	Director	10-12-99	10-12-99	22-09-08	Active	NO
12	L92490MH1999PLC122381	Fame India Limited	Director	21-12-04	21-12-04	-	Active	NO
13	U51909MH2004PTC149915	West Pioneer Properties (India) Private Limited	Director	10-01-05	10-01-05	25-11-10	Active	NO
14	U51909MH2005PTC151167	Westfield Entertainment Private Limited	Director	11-02-05	11-02-05	25-11-10	Active	NO
15	U24100MH2004PTC149240	Hardcastle Petrofer Private Limited	Director	25-10-05	25-10-05	05-08-11	Active	NO
16	U01403MH2007PLC169180	Global Trendz Limited	Director	30-03-08	30-03-08	22-12-10	Active	NO
17	L92490TN1986PLC013044	Sterling Holiday Resorts (India) Limited	Director	29-09-09	12-02-09	-	Active	NO
18	U52322MH2009PTC192038	Bungee Fashions Private Limited	Director	25-04-09	25-04-09	14-03-11	Active	NO
19	U70102MH2008PTC178127	Westpoint Leisureparks Private Limited	Director	08-04-10	08-04-10	-	Active	NO
20	U92100MH1999PLC119506	Fame Motion Pictures Limited	Director	13-07-11	21-01-11	-	Active	NO
21	L92199GJ1999PLC044045	Inox Leisure Limited	Director	15-07-11	26-05-11	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Alok Tandon
Designation :	Chief Executive Officer and Manager
Name :	Mr. Miket Shashikant Bahuva
Designation :	Deputy Company Secretary and Senior Manager – Legal

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	41,144,551	66.47
Sub Total	41,144,551	66.47
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	41,144,551	66.47
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	77,292	0.12
Foreign Institutional Investors	1,070	-
Sub Total	78,362	0.13
(2) Non-Institutions
Bodies Corporate	6,633,188	10.72
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	8,838,967	14.28
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	1,628,953	2.63
Any Others (Specify)	3,571,527	5.77
Non Resident Indians	568,801	0.92
Trusts	373,540	0.60
Clearing Members	104,186	0.17
Directors & their Relatives & Friends	2,525,000	4.08
Sub Total	20,672,635	33.40
Total Public shareholding (B)	20,750,997	33.53
Total (A)+(B)	61,895,548	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	61,895,548	-

Shareholding belonging to the category "Promoter and Promoter Group"

Sl.	Name of the Shareholder	Total Shares held
No.		Number	As a % of
			grand total
			(A)+(B)+(C)
1	Gujarat Flurochemicals Limited	40,615,092	65.62
2	Inox Leasing and Finance Limited	529,459	0.86
	Total	41,144,551	66.47

Shareholding belonging to the category "Public" and holding more than 1% of the Total No. of Shares

Sl. No.	Name of the Shareholder	No. of Shares	Shares as % of Total No. of Shares
1	Reliance Capital Limited	2,600,005	4.20
2	Vivek Kumar Jain	650,000	1.05
3	Pavan Kumar Jain	650,000	1.05
	Total	3,900,005	6.30

Details of Locked-in Shares

Sl. No.	Name of the Shareholder	No. of Shares	Locked-in Shares as % of
			Total No. of Shares
1	Gujarat Flurochemicals Limited	227,748	0.37
	Total	227,748	0.37

BUSINESS DETAILS

Line of Business :	National chain of world class multiplex cinema theatres under the brand name - INOX.
Product Description :	· Operating Multiplexes · Film Distribution
Imports :
Products :	· Projection Equipment · Sound Equipment
Countries :	USA
Terms :
Purchasing :	L/C and Credit

GENERAL INFORMATION

No. of Employees :

1500 Approximately

Bankers :

· Axis Bank, Nepancy Road

· ING Vysya Bank, BKC, Bandra

· YES Bank, Worli Branch

· Citi Bank, BKC Branch, Bandra

Facilities :

Secured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Term Loans from Banks (Repayable within one year Rs.227.385 millions)	609.630	592.933
Total	609.630	592.933

Unsecured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Inter-corporate Deposit
from Holding Company	1330.000	1220.000
Interest accrued and due on above	19.814	0.000
from Ultimate Holding Company	180.000	50.000
Total	1529.814	1270.000

Banking Relations :	--
Auditors :
Name :	Patankar and Associates Chartered Accountant
Subsidiaries :	Fame India Limited (w.e.f. 6th January, 2011)
Fellow Subsidiary :	Inox Motion Pictures Limited
Holding Company :	Gujarat Fluorochemicals Limited
Ultimate Holding Company :	Inox Leasing and Finance Limited

CAPITAL STRUCTURE

As on 30.06.2011

Authorised Capital : Rs.750.000 Millions

Paid-up Capital : Rs.618.955 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
75000000	Equity Shares	Rs.10/- each	Rs.750.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
61895548	Equity Shares Out of above · 40615092 shares are held by the Holding Company, Gujarat Fluorochemicals Limited and 213875 shares are held by the Ultimate Holding Company, Inox Leasing and Finance Limited. · 1895548 Equity Share issued to shareholders of erstwhile Calcutta Cine Private Limited pursuant to a Scheme of Amalgamation.	Rs.10/- each	Rs.618.955 millions
	Less: 353737 Equity Shares, fully paid-up, issued to ESOP Trust but not allotted to employees	Rs.10/- each	Rs.3.537 millions
	Total		Rs.615.418 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		615.418	614.941	614.663
2] Share Application Money		0.000	0.000	0.000
3] Employee Stock Options Outstanding		2.543	7.802	10.341
4] Reserves & Surplus		2562.441	2486.377	2221.501
5] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3180.402	3109.120	2846.505
LOAN FUNDS
1] Secured Loans		609.630	592.933	288.682
2] Unsecured Loans		1529.814	1270.000	160.410
TOTAL BORROWING		2139.444	1862.933	449.092
DEFERRED TAX LIABILITIES		174.456	155.918	143.112
TOTAL		5994.302	5127.971	3438.709
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3398.051	3134.931	2810.247
Capital work-in-progress		65.800	148.930	197.854
Advances on Capital Account		0.479	6.879	8.236
Pre-operative expenditure pending allocation		25.532	62.955	104.984
INVESTMENT		853.636	826.953	5.494
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	26.206	19.534	16.274
	Sundry Debtors	127.017	89.610	64.580
	Cash & Bank Balances	173.313	575.518	23.212
	Other Current Assets	9.337	0.800	3.200
	Loans & Advances	1254.475	699.391	499.306
Total Current Assets		1590.348	1384.853	606.572
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	337.945	350.334	218.468
	Other Current Liabilities	68.450	59.757	47.193
	Provisions	33.149	27.439	29.017
Total Current Liabilities		439.544	437.530	294.678
Net Current Assets		1150.804	947.323	311.894
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		5494.302	5127.971	3438.709

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales and Service	3373.205	2536.468	2259.005
		Other Income	50.471	24.663	19.798
		TOTAL (A)	3423.676	2561.131	2278.803
Less	EXPENSES
		Entertainment tax	448.293	316.740	283.801
		Exhibition Cost	951.532	688.899	0.000
		Film Distributors Share	0.000	0.000	530.842
		Cost of Food and Beverages	177.539	136.893	120.960
		Operating and other Expenses	1413.832	1030.213	934.404
		TOTAL (B)	2991.196	2172.745	1870.007
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		432.480	388.386	408.796
Less	INTEREST (D)		152.053	52.997	44.787
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		280.427	335.389	364.009
Less/ Add	DEPRECIATION/ AMORTISATION (F)		188.307	154.245	165.025
	PROFIT BEFORE TAX (E-F) (G)		92.120	181.144	198.984
Less	TAX (H)		21.838	36.369	59.924
	PROFIT AFTER TAX (G-H) (I)		70.282	144.775	139.060
Add/ Less	Taxation in respect of earlier years
	Reversal of tax provision and deferred tax for earlier years		0.000	19.263	102.262
	MAT Credit Entitlement for earlier years		0.000	97.800	0.000
	Taxation Pertaining to Earlier Years		(0.703)	(1.261)	2.086
	PROFIT FOR THE YEAR		69.579	260.577	243.408
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		618.359	357.782	114.374
	BALANCE CARRIED TO THE B/S		687.938	618.359	357.782
	Earnings Per Share (Rs.) Basic Diluted		1.13 1.13	4.24 4.24	3.96 3.96

QUARTERLY RESULTS

PARTICULARS	30.06.2011 UnAudited
Net Sales	1002.900
Total Expenditure	872.800
PBIDT (Excl OI)	130.100
Other Income	15.100
Operating Profit	145.200
Interest	48.200
Exceptional Items	0.000
PBDT	97.000
Depreciation	49.300
Profit Before Tax	47.700
Tax	16.700
Provisions and contingencies	0.000
Profit After Tax	31.000
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	31.000

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.05	5.65	6.10
Net Profit Margin (PBT/Sales)	(%)	2.73	7.14	8.81
Return on Total Assets (PBT/Total Assets}	(%)	1.85	4.01	5.82
Return on Investment (ROI) (PBT/Networth)		0.03	0.06	0.07
Debt Equity Ratio (Total Liability/Networth)		0.81	0.74	0.26
Current Ratio (Current Asset/Current Liability)		3.62	3.17	2.06

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

Particulars	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
Dues to Micro and Small Enterprises	0.446	1.350	2.743
Others	337.499	348.984	215.725
Total	337.945	350.334	218.468

TRADE REFERENCES

· PVR Cinema

· Cinemax Theatre

FINANCIAL RESULTS

During the year, the Company achieved Sales and other Income of Rs.3423.676 millions, showing a growth of 33.68% compared to the previous year. The PBIDT increased by 11.35% to Rs. 432.480 millions. The profit before tax was lower by 49.15 % to Rs.92.120 millions. The profit after tax decreased by 73.30 % to Rs.69.579 millions compared to Rs.260.577 millions in 2009-10.

As on 31st March 2010, Company had 32 Multiplex Cinema Theatres with 119 screens and seating capacity of 33,656 Seats. During the year ended 31st March 2011, 6 Multiplex Cinema Theatres with 25 screens and seating capacity of 6,484 was added taking the tally of Multiplex Cinema Theatres to 38 with 144 screens and 40,140 seats as of 31st March, 2011

MANAGEMENT DISCUSSION AND ANALYSIS

Industry Structure and developments

The film exhibition business and the domestic box office is expanding at a fast pace and is exhibiting positive growth. With a projected Compound Average Growth Rate ( CAGR) of 9.6%** over the next five years, it is estimated that there will be an upward trend from the size of Rs.70 billion in 2009 to Rs.124 billion in 2014*. It is also worthy to mention here that 50 of the total 73 percent of Indian theatrical revenues that account for Indian film industry, is contributed by multiplexes. The industry which currently has approximately 1000 multiplex screens is likely to double its screen count over the next 5 years**.

In FY 2009-10 however, the estimated size of the Indian Film Industry stood at Rs.83.3 billion which marked a negative CAGR of 3.5% from Rs.89.3 billion in 2009. Industry experts believe that the content failed to generate mass appeal and was the primary reason for this decline. Though a number of movies had big budgets with superstars, all they could manage were decent opening week collections which dwindled in the following weeks.

With multiplex chains charting out an aggressive expansion roadmap, increasing digitalization of screens enabling wider film print releases, experimentation with different content, increasing popularity of regional film segment are some of the major drivers of growth, riding on which, the industry is expected to be back on its growth path.

SEGMENT WISE ANALYSIS

MULTIPLEXES / FILM EXHIBITION

Total revenue from theatrical exhibition segment during the financial year ended 31st March 2011 amounted to Rs.3381.100 millions. The profit from this Segment was Rs.197.900 millions for the financial year ended 31st March 2011. The increase in total revenue from this segment is attributed to commencement of operations of new properties across the country. As on date, the Company has 39 multiplexes, 147 screens in 26 cities across India (Multiplex Cinema Theatre with Three Screens situated at Liluah, Howrah commenced operations after 31st March 2011). With the additions of a number of 3D screens across the country, the company today has 3D screens in Baroda, Chennai, Faridabad, Indore, Jaipur, Kanpur, Lucknow, Nagpur, Pune, Raipur and Thane besides Mumbai, Bangalore, Pune, Kolkata and Hyderabad which has also contributed to the increase in total revenue.

FILM DISTRIBUTION

Total revenue from film distribution during the financial year ended 31st March 2011 amounted to Rs.0.100 million. However, the Company suffered a loss to the tune of Rs.0.400 million for the financial year ended 31st March 2011.

POWER

The Company has set up wind mills in the State of Gujarat primarily for the purpose of generating electricity for its captive consumption. The total revenue and profit from this segment was Rs.10.700 millions and Rs.4.800 millions respectively, for the financial year ended 31st March 2011

CONTINGENT LIABILITIES

· Claims against the Company not acknowledged as debt – Rs.7.945 millions

· Bank Guarantees in respect of:

o Entertainment tax exemption availed – Rs.49.820 millions

o Other matters – Rs.0.607 million

· Municipal Tax demand – Rs.47.539 millions

· Entertainment Tax demand – Rs.5.306 millions

· Service Tax demand – Rs.9.731 millions

· ESIC demand – Rs.0.971 million

UNAUDITED FINANCIAL RESULTS FOR THE FIRST QUARTER ENDED 30^TH JUNE, 2011.

(Rs. in Millions)

Particulars	Quarter ended 30 June 2011 (Unaudited)
Income
a) Net Sales / Income from Operations	995.000
b) Other Operating Income	7.900
Total Income (a+b)	1002.900
Expenditure
(a) Direct Cost
i) Entertainment Tax	125.600
ii) Film Distributors Share	272.200
iii) Cost of Food and Beverages	56.400
(b) Employees Cost	68.100
(c) Property Rent and Conducting Fees	123.200
(d) Depreciation (including amortization)	49.300
(e) Other Expenditure	227.300
Total (a to e)	922.100
3. Profit from operations before other income, interest and Exceptional items (1-2)	80.800
4. Other Income	15.100
5. Profit before Interest and Exceptional items (3+4)	95.900
6. Interest	48.200
7. Profit after interest before Exceptional items (5-6)	47.700
8. Exceptional Items	0.000
9. Profit From Ordinary activities before Tax	47.700
10. Tax expense
- Provision for taxation for the year	16.700
- Less/(Add) : taxation in respect of earlier periods	0.000
11. Net Profit from Ordinary activities after tax (9-10)	31.000
12. Extraordinary items (net of tax expense)	0.000
13. Net Profit for the period (11-12)	31.000
14. Paid-up equity share capital (Face Value Rs.10 per share)	615.400
15. Reserve excluding Revaluation Reserves	--
16. Earning Per Share (EPS) (In Rs.) – (Quarter figures are not annualized)
Basic EPS	0.50
Diluted EPS	0.50
17. Public Shareholding
- Number of Shares	20750997
- Percentage of shareholding	33.53%
18. Promoters and Promoter group share holding
a) Pledged / Encumbered
- Number of Shares	Nil
- Percentage of share (as a % of the total shareholding of promoter and promoter group)	Nil
- Percentage of shares(as a % of the total share capital of the company)	Nil
b) Non-encumbered
- Number of Shares	41144551
- Percentage of Share (as a % of the total shareholding of promoter and promoter group)	100%
- Percentage of Share (as a % of the total share capital of the company)	66.47%

SEGMENT WISE REVENUE RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDED 30^TH JUNE, 2011

(Rs. in Millions)

Particulars	Quarter ended 30 June 2011 (Unaudited)
Segment Revenue
Theatrical Exhibition	1002.300
Film Distribution	0.000
Power	4.400
Un-allocable and Corporate	15.000
Total Revenue	1021.700
Less : Inter Segment Revenue	3.700
Total External Revenue	1018.000
Segment Result
Theatrical Exhibition	78.000
Film Distribution	0.000
Power	2.900
Total Segment Result	80.900
Add : Un-allocable Income	15.000
Less : Interest expenses	48.200
Total Profit Before Tax	47.700
Segment Capital Employed (Segment Assets – Segment Liabilities)
Theatrical Exhibition	4212.400
Film Distribution	2.500
Power	63.400
Un-allocable and corporate	(1067.100)
Total	3211.200

Notes

1. The above results, reviewed by the Audit Committee, were taken on record at the meeting of the Board of Directors held on 11^th August, 2011. The statutory auditors of the company have carried out Limited Review of the above results.

2. Corresponding figures for previous period / year have been regrouped / recast wherever necessary to correspond to current period / year classification.

3. The figures for the current quarter are not comparable with those of the quarter ended 30^th June, 2010 since service tax on rentals upto 31^st March 2010 of Rs.61.300 millions was reversed during the quarter ended 30^th June 2010.

4. The entertainment tax exemption in respect of some of the Multiplexes of the Company has been accounted on the basis of eligibility criteria as laid down in the respective Scheme but is subject to final Orders yet to be received from respective authorities. Accordingly the Company has not charged Rs.13.700 millions to the Profit and Loss account for the quarter ended 30^th June 2011 being the Entertainment Tax of such Multiplexes. Corresponding figures for the previous quarter ended 30^th June, 2010, and for the year ended 31^st March, 2011, are Rs.10.400 millions and Rs.44.000 millions respectively. Cumulative amount as on 30^th June, 2011 is Rs.757.000 millions.

5. No provision of Service Tax payable on Renting of Immovable Property has been as the Company has challenged this levy with various Honourable High Courts and the matter is pending, except that Hon’ble High Court of Mumbai has upheld the levy vide judgement delivered on 4^th August 2011, operation of which has been stayed for four weeks. The Company is awaiting written order of the judgement and will take appropriate steps accordingly. The amount not provided in the accounts for the quarter ended 30^th June, 2011 is Rs.12.300 millions. Corresponding figures for the previous quarter ended 30^th June, 2010, and for the year ended 31^st March, 2011 are Rs.9.000 millions and Rs.42.400 millions respectively. Cumulative amount as on 30^th June, 2011 is Rs.110.800 millions.

6. In the appellate proceedings before the Commissioner of Income-Tax (Appeals) the Company’s contention that the amount of entertainment tax exemption availed for some of its multiplexes is a capital receipt has been accepted. Provision for current tax is made on the same basis and is consequently for Minimum Alternate Tax payable on book profits which is entitled to be carried forward and utilized in subsequent years. In the opinion of management, on the basis of projections and estimates of future taxable income, the Company would have normal tax liability within the specified period to avail such MAT credit. Consequently, the Company has recognized the MAT credit entitlement of Rs.8.800 millions for the quarter ended 30^th June 2011. Corresponding figures for the previous quarter ended 30^th June, 2010 and for the year ended 30^th June 2011 are Rs.11.800 millions and Rs.29.300 millions respectively. Cumulative amounts as on 30^th June, 2011 is Rs.171.400 millions.

7. The remuneration paid to the Manager of the Company is excess of the limits of Section 198 and 387 read with Schedule XIII to the Companies Act, 1956 to the extent of Rs.2.000 millions for the year ended 31^st March 2011 and Rs.0.300 million for the quarter ended 30^th June 2011, and requires approval of the Central Government. The Company is in the process of making application to the Central Government for approval of the said remuneration.

8. There were no investors’ complaints pending the beginning for the quarter. The Company received two complaints during the quarter. The Company has disposed of the two complaints and there were no complaints outstanding at the end of the quarter.

FIXED ASSETS

Tangible Assets

· Land (Freehold)

· Land (Leasehold)

· Building

· Lease hold improvements

· Plant and Machinery

· Wind-Mills

· Office Equipment including

· Computers

· Furniture and Fixtures

· Vehicles

Intangible Assets

· Software

· Film Distribution Rights and Prints Cost

WEB DETAILS

BUSINESS DESCRIPTION

Subject is an India-based company. The Company operates in four segments: multiplexes/ film exhibition, film distribution, film production and power. Multiplexes include operating and managing Multiplex Entertainment Centers Film distribution business includes distribution of movies. Film production business includes production of movies. Power business includes generation of wind power. It is a holding company of Gujarat Fluorochemicals Limited. As of March 31, 2010, the Company has 34 multiplexes, 129 screens in 23 cities across India. 3D screens have been installed in a number of properties, including Mumbai, Bangalore, Pune, Kolkata and Hyderabad. In January 2011, the Company acquired a majority stake in Fame India Limited, bringing its stake in Fame at 50.27% interest as on January 7, 2011. For the nine months ended 31 December 2010, Subject's revenues increased 47% to Rs.2.74B. Net income increased 21% to Rs.120.9M. Revenues reflect an increase in income multiplexes and power segment. Net income was partially offset by an increase in entertainment tax, higher film distribution share, a raise in employees cost, higher property rent and conducting fees and an increase in other expenditure.

BOARD OF DIRECTORS

Mr. Deepak Asher - Non-Executive Director

Mr. Deepak Asher serves as Non-Executive Director of company. Mr. Deepak Asher is a Commerce and Law graduate and is also a Fellow Member of the Institute of Chartered Accountants of India and an Associate Member of the Institute of Cost and Works Accountants of India. He has more than 25 years of experience in the fields of corporate finance and business strategy. Mr. Deepak Asher is the President of the Multiplex Association of India. He won the Theatre World Newsmaker of the Year Award in 2002 for his contribution to the multiplex sector. Mr. Deepak Asher has assisted the Group in setting up several new businesses, in the diverse fields of cinema exhibition, carbon credits and renewable energy. He also serves on the boards of Inox Leasing and Finance Limited, Gujarat Fluorochemicals Limited, Inox Motion Pictures Limited, Inox Infrastructure Private Limited and Inox Wind Limited.

Education

Commerce, Maharaja Sayajirao University of Baroda

Mr. Vivek Kumar Jain - Non-Executive Director

Mr. Vivek Kumar Jain serves as Non-Executive Director of company. Mr. Vivek Jain is a graduate in Economics from St. Stephens, New Delhi, and a post graduate in business administration with specialisation in finance, from the Indian Institute of Management, Ahemdabad. He has business experience of over 28 years and is currently the Managing Director of Gujarat Fluorochemicals Limited. Other Directorships: 1. Gujarat Fluorochemicals Limited 2. Inox Air Products Limited 3. Inox India Limited 4. Inox Leasing and Finance Limited 5. Inox Renewables Limited 6. Inox Chemicals Private Limited 7. Siddho Mal Investments Private Limited 8. Siddhapavan Trading and Finance Private Limited 9. Devansh Trading and Finance Private Limited 10. Devansh Gases Private Limited 11. Rajni Farms Private Limited 12. Inox Infrastructure Private Limited 13. Inox International Private Limited 14. Inox DPNC Outsourcing Services Private Limited 15. Kingston Smith Inox-DC Outsourcing Private Limited 16. Vindyachal Hydro Power Limited 17. Megnasolace City Private Limited 18. Siddho Mal Air Products Private Limited 19. Sitashri Trading and Finance Private Limited.

Education

Commerce, University of Delhi

Business Administration, Indian Institute of Management, Ahmedabad

Mr. Siddharth Jain - Non-Executive Director

Mr. Siddharth Jain serves as Non-Executive Director of company. Mr. Siddharth Jain has graduated from the University of Michigan - Ann Arbor, with a Bachelor of Science in Mechanical Engineering and has an MBA from INSEAD, France. He has over 6 years of work experience in various management positions.

Education

MBA , INSEAD

BS Mechanical Engineering, University of Michigan

Mr. Sanjeev Jain - Non-Executive Independent Director

Mr. Sanjeev Jain is Non-Executive Independent Director of company. He is Partner of M/s Shanti Prasad and Company, Chartered Accountants, Delhi has been appointed as an Independent Director and Chairman of the Audit Committee and Compensation Committee of subject with effect from May 21, 2010.

Mr. Pavan Kumar Jain - Non-Executive Director

Mr. Pavan Kumar Jain serves as Non-Executive Director of company. Mr. Pavan Jain is a chemical engineer from Indian Institute of Technology, New Delhi, and an industrialist with over 35 years of experience. He is the Managing Director of Inox Air Products Limited for the last more than 20 years. He has been instrumental in diversifying the Inox Group into various industries such as refrigerant gases, chemicals, cryogenic engineering, entertainment and renewable energy. Other Directorships: 1. Inox Air Products Limited 2. Inox Leasing and Finance Limited 3. Gujarat Flurochemicals Limited 4. Inox India Limited 5. Fame India Limited 6. Inox Renewables Limited 7. Inox Chemicals Private Limited 8. Siddhomal Investment Private Limited 9. Siddhapavan Trading and Finance Private Limited 10. Devansh Trading and Finance Private Limited 11. Devansh Gases Private Limited 12. Rajni Farms Private Limited 13. Inox Infrastructure Private Limited 14. Vindhyachal Hydro Power Limited 15. Siddhomal Air Products Private Limited 16. Sitashri Trading and Finance Private Limited 17. Inox International Private Limited.

Education

Chemical Engineering, Indian Institute of Technology, Delhi

Mr. Amit Jatia - Non-Executive Independent Director

Mr. Amit Jatia is Non-Executive Independent Director of company. He has a degree in Business Administration from the University of Southern California, Los Angeles. It was under Amit Jatia’s leadership, that McDonalds entered the West and South of India. Under his leadership, the brand has won accolades and awards for Business Excellence including ‘Most Respected Company’ awards as the ‘No 1 Food Services Company’ in India, in 2003 and 2004. In 2003, he was awarded the ‘’Young Achievers Award’’ by the Indo - American Society of India. Other Directorships: 1. Hardcastle Petrofer Private Limited 2. Horizon Impex Private Limited 3. Saubhagya Impex Private Limited 4. Subh Ashish Exim Private Limited 5. Anand Veena Twisters Private Limited 6. Achal Exim Private Limited 7. Acacia Impex Private Limited 8. Akshay Ayush Impex Private Limited 9. Vandeep Tradelinks Private Limited 10. Triple A Foods Private Limited 11. Westpoint Realtors Private Limited 12. Hardcastle Restaurants Private Limited 13. Fame India Limited 14. West Pioneer Properties Limited 15. Sterling Holiday Resorts (India) Limited 16. Fame Motion Pictures Limited.

Education

Business Administration, University of Southern California, Hamburger University

Mr. Haigreve Khaitan - Non-Executive Independent Director

Mr. Haigreve Khaitan serves as Non-Executive Independent Director of company He is a Partner in Khaitan and Company, a reputed legal firm with branches in Mumbai, Delhi, Kolkata and Bangalore. He has been practicing as an Advocate since 1995. His main areas of are commercial and corporate laws, tax laws, mergers and acquisitions, restructuring, foreign collaboration and licensing.

Education

LLB , University of Calcutta

Mr. Alok Tandon - Chief Executive Officer, Manager

Mr. Alok Tandon serves as Chief Executive Officer and Manager of company. An engineer by qualification, Mr. Alok Tandon is a key member of the senior management team of the Company. He has been with the Company since June 2001 and has close to 23 years of varied work experience. Mr. Alok Tandon joined the Company as Vice President - Technical and was elevated to the post of Chief Operating Officer (COO) with effect from May 2005. He was appointed as a Manager of the Company under Section 269 of the Companies Act, 1956 with effect from 18th June 2007. In April 2009, he was elevated to the post of Chief Executive Officer (CEO) of the Company. As the CEO and Manager of company, Mr. Alok Tandon is at the helm of subject’s expansion plans and concentrates on strengthening the INOX brand on a national scale; making it the first choice in the business of cinema exhibition in India. Mr. Alok Tandon also oversees the entire operations of the Company.

PRESS RELEASE

INOX LEISURE IN JUBILANT MOOD ON LAUNCHING SECOND MULTIPLEX IN VIJAYAWADA

22 August 2011

India, Aug. 22 -- INOX Leisure is currently trading at Rs 41.10, up by 5.40 points or 15.13% from its previous closing of Rs 35.70 on the BSE.The scrip opened at Rs 36.00 and has touched a high and low of Rs 41.85 and Rs 35.90 respectively. So far 59,000 shares were traded on the counter. The BSE group 'B' stock of face value Rs 10 has touched a 52 week high of Rs 80.25 on 23-Aug-2010 and a 52 week low of Rs 33.50 on 19-Aug-2011.Last one week high and low of the scrip stood at Rs 43.50 and Rs 33.50 respectively. The current market cap of the company is Rs.2540.000 millions. The promoters holding in the company stood at 66.47% while Institutions and Non-Institutions held 0.13% and 33.40% respectively. INOX Leisure in a bid to further strengthen its presence in Andhra Pradesh has launched its second multiplex in Vijayawada at LEPL Icon, Patamata. With the launch of this multiplex, INOX introduces its fifth multiplex in Andhra Pradesh and forty-first in the country. INOX at LEPL Icon has 4 auditoriums with a total capacity of 1,198 seats. INOX at LEPL Icon will screen a mix of Telugu, Hindi and English movies, all under one roof. REFUEL, the in-house brand of theatre food which serves an extended menu of flavored popcorn, hot and cold snacks, beverages and a variety of combo meals. Trained staff in ushering, box office, concessions and housekeeping ensures a comfortable and pleasant experience. Besides, a high standard of hygiene and security within the complex completes the loop in providing world-class comfort.The movies showcased in the opening week are SPY Kids : All the time in the world, Chatur Singh : Two Star, Not a Love Story, Zindagi Na Milagi Dobara, Mugguru Maha Maayagallu, Urimi, AArakshan, Kandireega, Dhada, Naa Peru Shiva, and Kanchana.With the launch of the fifth multiplex in Andhra Pradesh, INOX now has a total of 23 screens in the state. Nationally, INOX has 41 multiplexes and 155 screens in 26 cities. INOX is one of the fastest growing multiplex chains in the country, building and managing multiplex cinemas throughout India.

INOX LEISURE LAUNCHES SECOND MULTIPLEX IN VIJAYAWADA

19 August 2011

India, Aug. 19 -- INOX Leisure in a bid to further strengthen its presence in Andhra Pradesh has launched its second multiplex in Vijayawada at LEPL Icon, Patamata. With the launch of this multiplex, INOX introduces its fifth multiplex in Andhra Pradesh and forty-first in the country. INOX at LEPL Icon has 4 auditoriums with a total capacity of 1,198 seats. INOX at LEPL Icon will screen a mix of Telugu, Hindi and English movies, all under one roof. REFUEL, the in-house brand of theatre food which serves an extended menu of flavored popcorn, hot and cold snacks, beverages and a variety of combo meals. Trained staff in ushering, box office, concessions and housekeeping ensures a comfortable and pleasant experience. Besides, a high standard of hygiene and security within the complex completes the loop in providing world-class comfort. The movies showcased in the opening week are SPY Kids : All the time in the world, Chatur Singh : Two Star, Not a Love Story, Zindagi Na Milagi Dobara, Mugguru Maha Maayagallu, Urimi, AArakshan, Kandireega, Dhada, Naa Peru Shiva, and Kanchana.With the launch of the fifth multiplex in Andhra Pradesh, INOX now has a total of 23 screens in the state. Nationally, INOX has 41 multiplexes and 155 screens in 26 cities.INOX is one of the fastest growing multiplex chains in the country, building and managing multiplex cinemas throughout India.

INOX LAUNCHES 2ND MULTIPLEX IN VIJAYWADA AT LEPL ICON, PATAMATA

19 August 2011

India, Aug. 19 -- INOX Leisure Limited has informed BSE that the Company has commenced the Operations of a Multiplex Cinema Theatre situated at 3rd Floor, LEPL Icon, Patamata, Vijayawada ? 520 010, from August 19, 2011.In this regard the Company has issued a Press Release dated August 19, 2011 titled "INOX launches 2nd Multiplex in Vijaywada at LEPL Icon, Patamata". Published by HT Syndication with permission from ACCORD FINTECH BSE.

INOX LEISURE SHINES ON STARTING COMMERCIAL OPERATION AT ITS NEW MULTIPLEX CINEMA IN SILIGURI

14 June 2011

India, June 14 -- Inox Leisure is currently trading at Rs 45.60, up by 0.25 points or 0.55% from its previous closing of Rs 45.35 on the BSE. The scrip opened at Rs 45.15 and has touched a high and low of Rs 45.75 and Rs 45.15 respectively. So far 1,369 shares were traded on the counter. The BSE group 'B' stock of face value Rs 10 has touched a 52 week high of Rs 87.00 on 02-Aug-2010 and a 52 week low of Rs 41.00 on 09-Feb-2011.Last one week high and low of the scrip stood at Rs 46.30 and Rs 42.00 respectively. The current market cap of the company is Rs.2822.400 millions. The promoters holding in the company stood at 65.96% while Institutions and Non-Institutions held 0.20% and 33.84% respectively. INOX Leisure has begun commercial operation at its new multiplex cinema theatre situated at City Centre, Siliguri in West Bengal, from June 14, 2011. Inox at City centre has 4 auditoriums with a total capacity of 1,199 seats. Following the launch of 10th multiplex in West Bengal, the company now has a total of 37 screens in the state. Nationally the company has 40 multiplexes and 151 screens in 26 cities. Inox is one of the fastest growing multiplex chains in the country, building and managing multiplex cinemas throughout India.

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.46.97
UK Pound	1	Rs.74.22
Euro	1	Rs.63.66

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		63

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.