MIRA INFORM REPORT

Report Date :

16.10.2012

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) :	31.03.2011
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 2160000
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.

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DENIED BY

Name :	Mr. Manoj Kumar
Designation :	Secretary
Contact No.:	91-22-66613823
Date :	16.10.2012

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

DIRECTORS

As on 30.09.2011

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
Qualification:	ACA
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
Qualification:	MBA
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
Name :	Mr. Karun Gera
Designation :	Commercial Director
Date of Birth/Age :	41 Years
Qualification:	MBA
Experience:	18 Years
Date of Appointment :	01.06.2000
Name :	Mr. Uday Bambulkar
Designation :	Head - Sales
Date of Birth/Age :	43 Years
Qualification:	MBA
Experience:	18 Years
Date of Appointment :	13.06.2002
Name :	Mr. Rahul Bhowmik
Designation :	Head - Marketing
Date of Birth/Age :	39 Years
Qualification:	PGDM
Experience:	14 Years
Date of Appointment :	07.04.2003
Name :	Prameesh Barlota
Designation :	Senior Manager finance/ management accounting
Date of Birth/Age :	34 Years
Qualification:	ACA
Experience:	14 Years
Date of Appointment :	09.06.2005
Name :	Kamaljit Singh Bedi
Designation :	Regional Manger - North
Date of Birth/Age :	36 Years
Qualification:	PGDM
Experience:	14 Years
Date of Appointment :	19.01.2011

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

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 30.09.2011

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian 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

GENERAL INFORMATION

No. of Employees :	150 (Approximately) (In Office + In Factory)
Bankers :	Not Available
Facilities :	-

Banking Relations :	--
Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Pan No.:	AADFP9359C
Holding Company :	Mattel Inc, USA
Fellow Subsidiaries/ Affiliates :	· Mattel Europe, BV · Mattel HK Limited · Mattel Latin America Export Inc. · Mattel Asia Pacific Sourcing Limited · Mattel East Asia Limited · Mattel (Malaysia) Sdn Bhd · P.T. Mattel Indonesia · Mattel Diecast Com Limited · Mattel Poland Sp ZO. O · Mattel Bangkok Limited · Mattel International Operations Limited · Mattel Shared Service Solutions SDN BHD · Mattel South-East Asia Pte Limited · Montoi, S. A. DE C. V

CAPITAL STRUCTURE

As on.31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
31990000	Equity Shares	Rs.10/- each	Rs.319.900 Millions
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	Rs.1122.250 Millions
	Total		Rs.1436.664 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		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)		(898.165)	(987.944)	(1115.971)
NETWORTH		539.249	449.470	321.443
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		539.249	449.470	321.443
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7.575	6.183	9.621
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	262.954	183.060	109.959
	Sundry Debtors	193.382	171.290	187.412
	Cash & Bank Balances	187.935	198.024	111.661
	Other Current Assets	2.302	1.283	2.808
	Loans & Advances	93.976	68.754	65.199
Total Current Assets		740.549	622.411	477.039
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	173.872	138.511	139.298
	Other Current Liabilities	14.366	9.396	5.936
	Provisions	20.637	31.217	19.983
Total Current Liabilities		208.875	179.124	165.217
Net Current Assets		531.674	443.287	311.822
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		539.249	449.470	321.443

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income		739.984	642.766
		Licensing Income		33.940	31.275
		Other Income		9.864	20.580
		TOTAL	980.190	783.788	694.621
Less	EXPENSES
		Cost of Goods Sold		370.989	387.798
		Employee Cost		63.618	67.864
		Other Expenses		195.313	188.410
		TOTAL		629.920	644.072
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		NA	153.868	50.549
Less/ Add	DEPRECIATION/ AMORTISATION			3.841	3.789
	PROFIT BEFORE TAX			150.027	46.760
Less	TAX			22.000	6.400
	PROFIT AFTER TAX		89.780	128.027	40.360
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	(1117.787)	(1158.147)
	BALANCE CARRIED TO THE B/S		NA	(989.760)	(1117.787)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings		18.941	34.696
		Reimbursement of Expenses		4.657	4.556
		Licensing Income		0.000	1.368
	TOTAL EARNINGS		8.909	23.598	40.620
	IMPORTS
		Raw Materials and Components		18.569	15.086
		Toys and Traded Goods		362.345	273.616
	TOTAL IMPORTS		NA	380.914	288.702
	Earnings Per Share (Rs.)		2.86	4.07	1.28

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	9.16	16.33	5.81
Net Profit Margin (PBT/Sales)	(%)	NA	20.27	7.27
Return on Total Assets (PBT/Total Assets}	(%)	NA	23.87	9.61
Return on Investment (ROI) (PBT/Networth)		NA	0.33	0.15
Debt Equity Ratio (Total Liability/Networth)		0.39	0.40	0.51
Current Ratio (Current Asset/Current Liability)		3.55	3.47	2.89

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoters background	Yes
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of contact person	Yes
Turnover of firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	No
Capital the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payment Terms	No
Export / Import Details [If Applicable]	No
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	No
Banking Facility Details	No
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	Yes
Date of Birth of Proprietor/Partner/Director, if available	Yes
PAN of Proprietor/Partner/Director, if available	No
Voter ID No of Proprietor/Partner/Director, if available	No
External Agency Rating, if available	No

SUNDRY CREDITORS DETAILS:

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors
- Micro and Small Enterprise	0.000	0.000	0.000
- Others	173.872	138.511	139.298
Total	173.872	138.511	139.298

OVERALL PERFORMANCE AND OUTLOOK

During the year ended 31st March 2011 the turnover of the Company has increased by around twenty five percent from Rs. 783.79 million to 980.19 million. The Company has made a profit (after tax) of Rs. 89.78 million which is around thirty percent less than the profit of the previous year. This reduction in profit is mainly because of the rise in import cost due to increase in the cost of input materials and also due to increased spend on advertisement and promotional activities to build the brands.

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 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.53.12
UK Pound	1	Rs.85.15
Euro	1	Rs.68.60

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	BYI

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.