MIRA INFORM REPORT

Report Date :

22.10.2013

IDENTIFICATION DETAILS

Name :	MATTEL TOYS (INDIA) PRIVATE LIMITED
Registered Office :	Phoenix House, B-Wnig, 462, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
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 :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 2780000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a subsidiary of “Mattel Inc”, a worldwide leader in the design, manufacturer and marketing of toys and other family products. It is an established company having satisfactory track record. The company has seen a better increase in its sales turnover as well as net profitability and has wiped of a small part of its accumulated losses during 2012. Profit margin appears to be good. There are no external borrowings recorded during 2012. The ratings also take into consideration the company’s healthy portfolio which includes reputed brand names such as Barbie, Hot Wheels and Fisher-Price. Trade relations are fair. Business is active. Payment terms are reported as slow but correct. In view of strong presence in the branded toys market and its commitment to deliver superior quality and safe toy products with high play value, 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’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the traqde deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

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

Management Non-Cooperative (91-22-66613800)

LOCATIONS

Registered Office :	Phoenix House, B-Wnig, 462, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, 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

DIRECTORS

As on: 29.09.2012

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. 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. 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. 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 :	13.12.2009
PAN No.:	AAKPG5688G
DIN No.:	02483776
Name :	Mr. Peter Broegger
Designation :	Director
Address :	Altkoenigstrasse 54, Koenigstein, 30714146, Denmark
Date of Birth/Age :	12/11/1969
Date of Appointment :	27/07/2012
DIN No.:	05349138
Name :	Venkataramani Vembu
Designation :	Director
Address :	Apt 26A 1, Garden Terrace, 8 Old Peak Road, Mid Levels, Hong Kong SAR
Date of Birth/Age :	07.05.1962
Date of Appointment :	08/02/2012
DIN No.:	03292109
Name :	Mr. Manoj Kumar
Designation :	Director
Address :	304, Prakruti Co-operative Housing Society, Plot 3, Sector 21, Kharghar, Navi Mumbai – 410 210, Maharashtra, India
Date of Birth/Age :	21.05.1970
Date of Appointment :	08.02.2012
PAN No.:	ANLPS7382R
DIN No.:	05316973

KEY EXECUTIVES

Name :	Mr. Manoj Kumar
Designation :	Secretary
Address :	304, Prakruti Co-operative Housing Society, 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: 29.09.2012

Names of Shareholders	No. of Equity Shares
Mattel Inc., USA	16035115
Mattel Inc., USA jointly with Christopher Willlson White	1
Mattel International Holdings, B.V., Netherland	15406286
Total	31441402

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

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

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	ITC Code
Toys	95030020

GENERAL INFORMATION

No. of Employees :	Information declined by the management
Bankers :	Not Available
Facilities :	--

Banking Relations :	--
Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India
PAN No.:	AADFP9359C
Holding Company :	Mattel Inc., U.S.A.
Fellow Subsidiary Company :	Mattel Diecast Company Limited Mattel South-East Asia Pte Limited Mattel Latin America Export Inc. Mattel Poland Sp ZO. O Montoi, S. A. DE C. V Mattel Asia Pacific Sourcing Limited Mattel Bangkok Limited Mattel Barbie Shanghai Trading Company Mattel Latin America Export Inc. Mattel Europa B. V. Mattel East Asia Limited Mattel Asia Pacific Sourcing Limited Mattel (HK) Limited Mattel (Malaysia) Sdn Bhd Mattel Shared Service Solutions Sdn Bhd P.T. Mattel Indonesia

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
31990000	Equity Shares	Rs.10/- each	Rs.319.900 Millions
115010000	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	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	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1436.664	1436.664
(b) Reserves & Surplus	(740.169)	(897.415)
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	696.495	539.249
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	1.000	0.000
(d) long-term provisions	22.043	20.527
Total Non-current Liabilities (3)	23.043	20.527
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	272.734	175.943
(c) Other current liabilities	15.326	14.703
(d) Short-term provisions	0.138	0.110
Total Current Liabilities (4)	288.198	190.756
TOTAL	1007.736	750.532
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	7.297	7.575
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	98.285	86.148
(e) Other Non-current assets	8.676	2.001
Total Non-Current Assets	114.258	95.724
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	254.598	262.955
(c) Trade receivables	253.119	187.636
(d) Cash and cash equivalents	351.453	187.036
(e) Short-term loans and advances	26.938	10.235
(f) Other current assets	7.370	6.946
Total Current Assets	893.478	654.808
TOTAL	1007.736	750.532

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		1436.664
2] Share Application Money		0.000
3] Reserves & Surplus		0.750
4] (Accumulated Losses)		(987.944)
NETWORTH		449.470
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.000
TOTAL BORROWING		0.000
DEFERRED TAX LIABILITIES		0.000
TOTAL		449.470
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.183
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	183.060
	Sundry Debtors	171.290
	Cash & Bank Balances	198.024
	Other Current Assets	1.283
	Loans & Advances	68.754
Total Current Assets		622.411
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	138.511
	Other Current Liabilities	9.396
	Provisions	31.217
Total Current Liabilities		179.124
Net Current Assets		443.287
MISCELLANEOUS EXPENSES		0.000
TOTAL		449.470

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income			739.984
		Licensing Income			33.940
		Other Income			9.864
		TOTAL	1205.890	980.190	783.788
Less	EXPENSES
		NACost of Goods Sold			370.989
		Employee Cost			63.618
		Other Expenses			195.313
		TOTAL			629.920
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		NA	NA	153.868
Less/ Add	DEPRECIATION/ AMORTISATION				3.841
	PROFIT BEFORE TAX				150.027
Less	TAX				22.000
	PROFIT AFTER TAX		157.250	89.780	128.027
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	(1117.787)
	BALANCE CARRIED TO THE B/S		NA	NA	(989.760)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings			18.941
		Reimbursement of Expenses			4.657
		Licensing Income			0.000
	TOTAL EARNINGS		12.510	8.909	23.598
	IMPORTS
		Raw Materials and Components			18.569
		Toys and Traded Goods			362.345
	TOTAL IMPORTS		NA	NA	380.914
	Earnings Per Share (Rs.)		5.00	2.86	4.07

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	13.04	9.16	16.33
Net Profit Margin (PBT/Sales)	(%)	NA	NA	20.27
Return on Total Assets (PBT/Total Assets}	(%)	NA	NA	23.87
Return on Investment (ROI) (PBT/Networth)		NA	NA	0.33
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		3.10	3.43	3.47

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS – NOT AVAILABLE

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	Yes
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	No
24]	Banking facility details	No
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	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

OVERALL PERFORMANCE AND OUTLOOK

During the year ended 31st March 2012 the turnover of the Company has increased by around twenty three percent from Rs. 980.190 millions to 1205.89 millions. The Company has made a profit (after tax) of Rs. 157.250 millions which is an increase of around seventy five percent over the profit of the previous year.

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.

Notes: No Charges Exist for Company

FIXED ASSETS

Tangible Assets

• Land
• Buildings
• Plant and Equipment
• Office Equipment
• Computer Equipments
• Leasehold Improvements

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.61.49
UK Pound	1	Rs.99.41
Euro	1	Rs.84.12

INFORMATION DETAILS

Information Gathered by :	NAY
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	4
--CREDIT LINES	1~10	5
--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	NO
	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.