MIRA INFORM REPORT

Report Date :

17.01.2013

IDENTIFICATION DETAILS

Name :	BALAJI STUDIOS PRIVATE LIMITED
Registered Office :	Bharani Studio Compound, 22, Arcot Road, Saligrammam, Chennai - 600093, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	22.01.2008
Com. Reg. No.:	18-066149
Capital Investment / Paid-up Capital :	Rs.15.500 Millions
CIN No.: [Company Identification No.]	U45400TN2008PTC066149
Legal Form :	Private Limited Liability Company
Line of Business :	Providing studios on rental basis for dubbing, industrial photography etc.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (18)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears huge accumulated losses recorded by the company. The financial position is under pressure. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a safe and secured 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.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

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.

LOCATIONS

Registered Office :	Bharani Studio Compound 22, Arcot Road, Saligrammam Chennai - 600093, Tamilnadu, India
Tel. No.:	91-44-23651251/ 23651262
Fax No.:	91-44-23650253
E-Mail :	balajiphotofilms@gmail.com

DIRECTORS

As on: 28.09.2012

Name :

Mrs. Kartheeka Thandra

Designation :

Whole-time Director

Address :

Flat No. D E, Ranjana Park, Banumatht Ramakrishna Road, Saiigrammam, Chennai -600093, Tamilnadu, India

Date of Appointment :

01.04.2009

DIN No.:

01740950

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U45400TN2008PTC066149	BALAJI STUDIOS PRIVATE LIMITED	Whole-time director	01/04/2009	22/01/2008	-	Active	NO
2	U22200TN2010PTC077822	JAYA BALAJI REAL MEDIA PRIVATE LIMITED	Director	26/10/2010	26/10/2010	-	Active	NO

Name :

Mr. Pavan Kumar Appa Rao Meka

Designation :

Whole-time Director

Address :

C1-105, RMV Clusters, Lottegoiiahalli, Bangalore – 560094, Karnataka, India

Date of Appointment :

01.10.2012

DIN No.:

01740965

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U45400TN2008PTC066149	BALAJI STUDIOS PRIVATE LIMITED	Managing director	01/10/2012	22/01/2008	-	Active	NO
2	U70101KA2011PTC057359	UNITED INFRAREALITY PRIVATE LIMITED	Director	04/03/2011	04/03/2011	-	Active	NO

Name :

Mr. Sameer Kumar Appa Rao Meka

Designation :

Whole-time Director

Address :

C1-105, RMV Clusters, Lottegoiiahalli, Bangalore – 560094, Karnataka, India

Date of Appointment :

01.04.2009

DIN No.:

01740979

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U45400TN2008PTC066149	BALAJI STUDIOS PRIVATE LIMITED	Whole-time director	01/04/2009	22/01/2008	-	Active	NO
2	U70101KA2011PTC057359	UNITED INFRAREALITY PRIVATE LIMITED	Director	04/03/2011	04/03/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 28.09.2012

Names of Shareholders	No. of Shares
MVMG Appa Rao	11500
T. Ramesh	35000
T. Kartheeka	4000
M. P. K. Appa Rao	10500
M. S. K. Appa Rao	9500
M. Rajaratna	3500
M. Akhila	1000
Ch. Ramadevi	80000
Total	155000

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Providing studios on rental basis for dubbing, industrial photography etc.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of Hyderabad, Thousand Lights Branch, 37b Whites Road, Royapettah, Chennai – 600014, Tamilnadu, India

· UCO Bank

· Andhra Bank

· Axis Bank

· HSBC

· Standard Chartered Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
State Bank of Hyderabad	10.131	5.972
UCO Bank	0.000	6.178
Total	10.131	12.150

Banking Relations :	--
Auditors :
Name :	V. S. Reddysp and Associates Chartered Accountants
Address :	S-19, 'E' Block, TNHB Complex, No.4, Luz Church Road, Mylapore, Chennai – 600004, Tamilnadu, India
Tel. No.:	91-44-42102612/ 42102614
Mobile No.:	91-9841281693
E-Mail :	Csdamodaran@gmail.com
PAN.:	AADFV8995J

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.100/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
155000	Equity Shares	Rs.100/- each	Rs.15.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		15.500	15.500	1.000
2] Share Application Money		1.431	2.252	1.429
3] Reserves & Surplus		0.000	0.000	5.066
4] (Accumulated Losses)		(34.180)	(32.356)	0.000
NETWORTH		(17.249)	(14.604)	7.495
LOAN FUNDS
1] Secured Loans		10.131	12.150	53.158
2] Unsecured Loans		0.000	0.000	26.512
TOTAL BORROWING		10.131	12.150	79.670
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		(7.118)	(2.454)	87.165
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		15.023	15.315	14.947
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	6.158	8.447	76.225
	Sundry Debtors	6.247	1.911	0.664
	Cash & Bank Balances	4.611	4.444	3.060
	Other Current Assets	14.408	27.471	0.000
	Loans & Advances	2.695	0.010	4.498
Total Current Assets		34.119	42.283	84.447
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	41.324	33.306	12.229
	Other Current Liabilities	8.645	25.748	0.000
	Provisions	6.289	0.996	0.000
Total Current Liabilities		56.258	60.050	12.229
Net Current Assets		(22.141)	(17.769)	72.218
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		(7.118)	(2.454)	87.165

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	40.915	166.955	65.027
		Other Income
		TOTAL	40.915	166.955	65.027
Less	EXPENSES
		Office Expenses	42.738	204.378	58.958
		Administrative Expenses
		Advertising Expenses
		TOTAL	42.738	204.378	58.958
	PROFIT/ (LOSS) BEFORE TAX		(1.823)	(37.423)	6.068
Less	TAX		NA	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX		NA	(37.423)	6.068
	Earnings/ (Loss) Per Share (Rs.)		(11.76)	NA	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	(22.41)	9.33
Net Profit Margin (PBT/Sales)	(%)	NA	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	(3.71)	(64.97)	6.10
Return on Investment (ROI) (PBT/Networth)		0.11	2.56	0.81
Debt Equity Ratio (Total Liability/Networth)		(3.85)	(4.94)	12.26
Current Ratio (Current Asset/Current Liability)		0.61	0.70	6.91

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

Note:

The registered office of the company has been shifted from Flat No. D and E, Ranjana Park, Banumathi Ramakrishna Road, Saligrammam, Chennai – 600093, Tamilnadu, India to present address w.e.f. 23.1.2008

Bankers Charges Report as per Registry

Corporate identity number of the company	U92100TN2008PTC066149
Name of the company	BALAJI STUDIOS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Bharani Studio Compound 22, Arcot Road, Saligrammam Chennai - 600093, Tamilnadu, India balajiphotofilms@gmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10229813
Type of charge	Book debts Movable property (not being pledge) Others (Vehicles)
Particular of charge holder	State Bank of Hyderabad, Thousand Lights Branch, 37b Whites Road, Royapettah, Chennai – 600014, Tamilnadu, India Kpkchennai@Yahoo.Co.In
Nature of instrument creating charge	a) Letter of Arrangement - SME -1 b) Supplemental Agreement of Loan-Cum-Hypothecation - SME - 4 c) Guarantee Agreement - SME – 3
Date of instrument Creating the charge	15.06.2011
Amount secured by the charge	Rs. 11.275 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 4.50% above Base Rate (Present Base Rate 9.50%). Present effective Rate: 14.00% p.a. Terms of Repayment As stipulated by the bank from time to time. Margin 25% for Raw Materials, Semi Finished Goods and Finished Goods. Extent and Operation of the charge As per Agreements.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Primary: Charge over the entire current assets of the Company including raw materials, goods in transit, stores / spares / consumables, book debts.
Particulars of the present modification	By the present modification the overall credit limits enhanced from Rs.9.230 Millions to Rs.11.275 Millions. All other terms and conditions of original charge remain unaltered.

FIXED ASSETS:

· Fax Machine

· Optical Sound Camera

· Projector Lamps

· Dolby SR Units

· QSC Amplifiers

· JBL Speakers

· Pana Stereo 6Channel Encoder and Decode

· MuHimidea Projector

· DM 24 Digital Mixer

· UPS Systems

· Computer Software Systems (Laptop)

· Printers

· Pulz Power Amplifiers

· Yamaha Console

· Spectral Compressor

· Dolby Cinema Processor - Hardware

· Dolby Cinema Processor - Adapter

· Cable Connectors

· Sanyo LCD Projector

· Wave Mercury Bundle

· Vacuum Cleaner

· Projector Parts

· Fire Extinguishers

· Mackie Equalizer

· MYK.DPS.Board

· Pyramix Options

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 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.54.83
UK Pound	1	Rs.87.99
Euro	1	Rs.72.83

INFORMATION DETAILS

Report Prepared by :

RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		18

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.