MIRA INFORM REPORT

Report No. :	316630
Report Date :	10.04.2015

IDENTIFICATION DETAILS

Name :	WARNER BROS PICTURES (INDIA) PRIVATE LIMITED
Registered Office :	42, M Karve Road, Churchgate, Mumbai – 400020, Maharashtra
Tel No.:	91-22-6112500 / 6112508
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	03.07.2003
Com. Reg. No.:	11-141168
Capital Investment / Paid-up Capital :	Rs.1425.000 Million
CIN No.: [Company Identification No.]	U92110MH2003PTC141168
TIN No.:	Not Available
IEC No.:	0304079995
TAN No.: [Tax Deduction & Collection Account No.]	MUMW02121A
PAN No.: [Permanent Account No.]	AAACW5535B
Legal Form :	Private Limited Liability Company
Line of Business :	The company is principally engaged in import, duplication and distribution of foreign cinematographs and activities for acquisition and distribution of Indian films.
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a wholly owned subsidiary of “Warner Bros Entertainment Inc., USA”. It is an established company having satisfactory track. The company possesses an acceptable financial profile mainly marked by timely infusion of funds from the part of promoters along with no leverage and sufficient cash balance at the disposal which is reported in the books. Moreover, the ratings consider the financially strong parent backed by iconic brands, diversified portfolio of assets coupled with strong competitive position in the world market, along with large cash balance and substantial free cash flow generation. Management has reported that they are steadily improving the overall situation and has witnessed a minimal profit by bucking off the trend of consecution losses during FY 2014 and is expecting to grow as they have entered into co-production and distribution deals with many domestic production houses. Further the ratings also take into consideration, India as the new favourite of international studios with 100% FDI permitted in the film sector, leading to massive FDI inflows to explore the potential in the world’s third largest television market. Trade relations are fair. Business is active. Payments are reported to be usually correct. In view of demonstrated parentage support, the company can be considered 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.

EXTERNAL AGENCY RATING

NOT AVAILABLE

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 31-03-2014.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Pranav Shah
Designation :	Finance Manager
Contact No.:	91-22-66112510
Date :	09.04.2015

LOCATIONS

Registered Office / Factory:	42, M Karve Road, Churchgate, Mumbai – 400020, Maharashtra, India
Tel. No.:	91-22-66112542 / 6112500
Fax No.:	91-22-66112539
E-Mail :	blaise.fernandes@warnerbros.com denzil.dies@warnerbros.com
Website :	http://www.warnerbros.com
Area :	4000 Sq. Ft.
Location :	Owned

DIRECTORS

As on 24.09.2014

Name :	Mr. Suresh Narsappa Talwar
Designation :	Director
Address :	10, Shiv Sahanti Bhavan, 146, Maharashi Karve Road, Churchgate Reclamation, Mumbai – 400020, Maharashtra, India
Date of Birth/Age :	21.11.1937
Date of Appointment :	20.01.2005
DIN No.:	00001456
Name :	Mr. Darius Cavasji Shroff
Designation :	Director
Address :	Moonlight Flat No.8, Maharshi Karve Road, Churchgate, Mumbai – 400020, Maharashtra, India
Date of Birth/Age :	08.08.1944
Date of Appointment :	20.01.2005
DIN No.:	00170680
Name :	Mr. Damon Banesteel
Designation :	Director
Address :	414 South Bentley Avenue, Los Angeles – 90049, California, USA
Date of Birth/Age :	02.01.1969
Date of Appointment :	03.07.2003
DIN No.:	00236297
Name :	Mr. Edward Ramano
Designation :	Director
Address :	14, Toluca Estate Drive, Toluca Lake, California – 91602, USA
Date of Birth/Age :	03.03.1942
Date of Appointment :	03.07.2003
DIN No.:	00244299
Name :	Mr. David Williamson
Designation :	Director
Address :	18747, Mayall Street, Northridge, California – CA91324, USA
Date of Birth/Age :	01.06.1958
Date of Appointment :	03.07.2003
DIN No.:	00257119
Name :	Mr. Anh Dung Jack Nguyen Huu
Designation :	Director
Address :	877, Iliff Stree, Pacific Palisades, California – 90272, USA
Date of Birth/Age :	02.01.1963
Date of Appointment :	03.07.2003
DIN No.:	01508197
Name :	Mr. Denzil Tony Dias
Designation :	Managing Director
Address :	2 Neel Kanth, Dadabhai Cross Road, No.3, Ville Parle East, Mumbai – 400056, Maharashtra, India
Date of Birth/Age :	04.05.1973
Date of Appointment :	08.03.2013
DIN No.:	02277013
PAN No.:	AAGPD1473J
Name :	Mr. John Andrew Rogovin
Designation :	Additional Director
Address :	406 N Bonhill Road, Los Angeles, CA 90049, USA
Date of Birth/Age :	10.07.1961
Date of Appointment :	23.07.2009
DIN No.:	02729649

KEY EXECUTIVES

Name :	Mr. Pranav Shah
Designation :	Finance Manager

MAJOR SHAREHOLDERS

As on 24.09.2014

Names of Shareholders	No. of Shares	% of Holding
T W Ventures Inc, USA	219999	0.15
Warner Bros Entertainment Inc., USA	142280001	99.85
Total	142500000	100.00

Equity Share Break up (Percentage of Total Equity)

As on 24.09.2014

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

BUSINESS DETAILS

Line of Business :	The company is principally engaged in import, duplication and distribution of foreign cinematographs and activities for acquisition and distribution of Indian films.
Products :	Cinematographs Films
Brand Names :	--
Agencies Held :	--
Exports :
Products :	Cinematographs films
Countries :	USA
Imports :	Not Divulged
Terms :
Selling :	Cash and Credit (30 / 60 / 90 Days)
Purchasing :	Cash and Credit (30 / 60 / 90 Days)

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Remark :	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Remark :	Not Divulged

No. of Employees :

50 (Approximately)

Bankers :

Banker Name	CITI Bank
Branch Address	Fort Branch, Mumbai, Maharashtra, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Auditors :
Name :	S.R. Batliboi and Associates Chartered Accountants
Address :	14th Floor, The Ruby 29, Senapati Bapat Marg, Dadar West, Mumbai - 400028, Maharashtra, India
PAN No.:	AABFS3421N
Memberships :	--
Collaborators :	--
Holding company:	Warner Bros Entertainment Inc., USA
Fellow Subsidiary company:	Warner Bros (F.E.) Inc. Warner Bros. Home Entertainment Inc. Warner Bros. Distributing Inc. Warner Bros. Pictures International (a division of Warner Bros. Pictures Inc.)

CAPITAL STRUCTURE

As on 24.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
142500000	Equity Shares	Rs.10/- each	Rs.1425.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
142500000	Equity Shares	Rs.10/- each	Rs.1425.000 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1,425.000	1,425.000	1,225.000
(b) Reserves & Surplus	(1,350.023)	(1,419.262)	(1,350.207)
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	74.977	5.738	-125.207
7
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	12.437	10.861
Total Non-current Liabilities (3)	0.000	12.437	10.861
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	83.000
(b) Trade payables	120.792	88.754	57.141
(c) Other current liabilities	192.517	31.486	41.399
(d) Short-term provisions	15.980	15.554	18.105
Total Current Liabilities (4)	329.289	135.794	199.645
TOTAL	404.266	153.969	85.299
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	4.283	6.497	8.939
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	15.666	20.804	20.615
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	19.949	27.301	29.554
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	0.000	0.000	0.000
(c) Trade receivables	93.690	60.158	12.896
(d) Cash and cash equivalents	270.084	18.132	8.227
(e) Short-term loans and advances	15.975	39.213	26.451
(f) Other current assets	4.568	9.165	8.171
Total Current Assets	384.317	126.668	55.745
TOTAL	404.266	153.969	85.299

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	INCOME		NA	NA	NA
	EXPENSES		NA	NA	NA
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		71.652	(65.884)	(40.982)
Less	DEPRECIATION/ AMORTISATION		2.413	3.171	22.543
	PROFIT/(LOSS) BEFORE TAX		69.239	(69.055)	(63.525)
Less	TAX		0.000	0.000	0.000
	PROFIT/(LOSS) AFTER TAX		69.239	(69.055)	(63.525)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	15.003	13.808	0.000
	TOTAL EARNINGS		15.003	13.808	0.000
	Earnings / (Loss) Per Share (Rs.)		0.49	(0.56)	(0.52)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets}	(%)	17.13	(44.85)	(74.47)
Return on Investment (ROI) (PBT/Networth)		0.92	(12.03)	0.51
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	(0.66)
Current Ratio (Current Asset/Current Liability)		1.17	0.93	0.28

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Share Capital	1225.000	1425.000	1425.000
Reserves & Surplus	(1350.207)	(1419.262)	(1350.023)
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	(125.207)	(5.738	74.977
Long Term borrowings	0.000	0.000	0.000
Short Term borrowings	83.000	0.000	0.000
Total borrowings	83.000	0.000	0.000
Debt/Equity ratio	(0.663)	0.000	0.000

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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	No
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	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	----------
22]	Litigations that the firm / promoter involved in	----------
23]	Banking Details	Yes
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

CORPORATE INFORMATION

The company incorporated in July 2003 is a subsidiary of Warner Bros Entertainment Inc. The company is principally engaged in import, duplication and distribution of foreign cinematographs and activities for acquisition and distribution of Indian films.

The company has accumulated losses of Rs.1350.023 Million (previous year Rs.1419.262 Million) at the year end. The company in the current year has made profit of Rs.69.239 Million (including cash profit of Rs.71.653 Million). Also, the company has cash balance of Rs.270.084 Million as at March 31, 2014. Further, as per the business plan, the company expects to have positive cash flow from the operations for the year 2014-15. Based on the above, the management is confident that it has adequate resources to meet its liability as and when they fall due for payment. Accordingly, the financial statements have been prepared assuming that the company will continue as going concern.

OPERATING RESULTS:

The Accounts of the Company for the year showed a profit of Rs.69.239 Million after providing Rs.2.413 Million for depreciation. The performance of the Company has been steadily improving. It has taken various steps to achieve higher volumes and to grow its income whilst controlling costs.

NO CHARGES EXIST FOR THE COMPANY

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

PRESS RELEASES

ECONOMIC SURVEY 2015: DIGITAL ADVERTISING, GAMING TO DRIVE GROWTH IN MEDIA

NEW DELHI: Digital advertising and gaming verticals are expected to drive growth of Indian media and entertainment industry in the next few years, said Economic Survey 2014-15.

India is also emerging as the new favourite of international studios, with 100 per cent FDI permitted in the film sector, the document said.

"With Rs 18.4 billion inflows, this sector contributed 1.6 per cent of the total FDI inflows in India during April 2000-November 2014," it said.

Disney, Fox, Sony, and Warner Brothers have entered into co-production and distribution deals with domestic production houses, the survey said.

"Digital advertising and gaming are projected to drive the growth of this sector in the coming years," said the Economic Survey for 2014-15 tabled in Parliament today.

The Indian media and entertainment industry is estimated to have grown by 11.8 per cent to Rs 918 billion in 2013 and is projected to grow at a CAGR of 14.2 per cent to reach Rs 1,786 billion by 2018.

The media and entertainment industry in the country comprises various segments including television, print, films, radio, music, gaming & visual effects, animation and digital advertising.

India is the world's third largest TV market after China and the US with 161 million TV households. There are about 826 satellite television channels, 86 teleports, 243 FM radio channels, and 179 community radio stations.

Moreover, the country's broadcasting distribution network comprises of 6,000 multi system operators (MSOs), around 60,000 local cable operators (LCOs), and seven direct to home (DTH) operators.

In order to further boost technology, the government has embarked on an ambitious project of digitising country's cable network in four phases, leading to complete switch-off of analog TV services by December 31, 2016.

India has co-production treaties with 10 countries. In 2014, the government has accorded permission for film shooting in India to 21 foreign production houses, it added.

WARNER BROS MERCHANDISE ARM EYES FRANCHISING FOR FASTER GROWTH

MUMBAI: Following its foray into the retail space with 'Kids WB' stores earlier this year, Warner Bros Consumer Products (WBCP) is now looking at growth through avenues like licensing with real estate developers and live shows in the country.

Known for properties like Tom & Jerry, Looney Tunes, Scooby Doo and DC Comics' Superman and Batman,WBCP opened its first exclusive store at Coimbatore in partnership with Suncorp Exim in April this year.

While it is bullish on expanding the retail presence, it is also exploring options to extend licencing to different categories like real estate.

"Globally, WBCP is a USD 6-billion business and India is a relatively small currently...

"However, it is a fast growing market and there is a huge potential. There are a number of licencing opportunities that we are looking at," WBCP managing director Preston Kevin Lewis told PTI.

He further said the company is looking at bringing in a lot of live shows featuring its characters.

"We are also in talks with various realty developers," he said, adding that these are for projects in Delhi, Mumbai and other larger cities.

WBCP has another partner -- Fashion Brands -- which will set up 'Kids WB' stores in the North.

"As part of our retail strategy, we are focused on expanding the reach of our products through traditional retail chains and mom-n-pop stores. At the same time, Kids' WB stores would be a one-stop shop for our entire WB branded merchandise range," Lewis said.

After Coimbatore, the company is looking to set up shops in Jaipur and Ludhiana over the next three months, followed by Delhi and Mumbai, he added.

The stores stock merchandise across categories like apparel, footwear and stationery, among others.

"We will also introduce new merchandise to coincide with the release of movies like Godzilla and the Hobbit next year," Lewis said.

Though he declined to comment on revenue from here, he said WBCP is targetting "substantial revenue growth", which is expected to double from current levels in the next three to five years.

WARNER BROS WIN LEGAL CONTROL OVER SUPERMAN

SAN FRANCISCO, JAN 11:  

Just in time for the summer release of a hoped-for blockbuster movie “Man of Steel,” Warner Bros. won a second significant legal victory Thursday giving it complete commercial control of the lucrative Superman franchise.

A three-judge panel of the 9th U.S. Circuit of Appeals unanimously ruled that the heirs of Superman’s co-creator Jerome Siegel must abide by a 2001 letter written by the family’s attorney accepting Warner Bros.’ offer for their 50 percent share of Superman. Though the five-page letter was never formalized into a contract, the appeals court said it was still binding.

“Statements from the attorneys for both parties establish that the parties had undertaken years of negotiations, that they had resolved the last outstanding point in the deal during a conversation on Oct. 15, 2001, and that the letter accurately reflected the material terms they had orally agreed to on that day,” Judge Stephen Reinhardt wrote for the panel.

The ruling undoes a 2008 trial court decision ordering Warner Bros. to share an undetermined amount of money earned since 1999 with the heirs, and to give the family control of key components of the Superman story, including his costume.

If that decision were to stand, the studio would have had to negotiate a new costly royalty agreement with the family.

“The court’s decision paves the way for the Siegel finally to receive the compensation they negotiated for and which DC has been prepared to pay for over a decade,” Warner Bros. said in a prepared statement, referring to its DC Comics division.

“We are extremely pleased that Superman’s adventures can continue to be enjoyed across all media platforms worldwide for generations to come.”

The family’s attorney, Marc Toberoff, didn’t respond to a request for comment.

Toberoff said earlier that he would appeal another significant Warner Bros. victory won in October involving the family of Superman’s other creator, Joseph Shuster, and their bid for half the commercial rights. Toberoff also represents the Shuster heirs, who lost their bid to retain a 50 percent share of Superman.

A federal judge in Los Angeles had ruled that Shuster’s sister and brother relinquished any chance to reclaim Superman copyrights in exchange for annual pension payments from DC Comics. U.S. District Judge Otis Wright noted in that case that the families of both creators have been paid in excess of $4 million since 1978, plus undefined bonuses and medical benefits.

WARNER BROS. PICTURES NUMBER ONE STUDIO IN 2013

6 JANUARY 2014

Warner Bros. Pictures has emerged as the top-grossing studio for 2013 after an estimated global box office earning of $5.035 billion.

Dan Fellman, president of Domestic Distribution; Veronika Kwan Vandenberg, president of International Distribution; and Sue Kroll, president of Worldwide Marketing and International Distribution, Warner Bros. Pictures announced that the studio ranked number one in the US, international and worldwide market shares, said a statement.

In India as well -- having raked in Rs.1550.000 Million, Warner Bros. Pictures turned out to be number one Hollywood studio in 2013.

Some of their box office hits include "The Conjuring" with Rs.24 crore (about $3,854,848), "Man of Steel" with Rs.370.000 Million and "Gravity" with Rs.420.000 Million.

"Gravity" and "The Conjuring" have witnessed 100 days and 50 days, respectively, at the Indian box office, which is rare for English films in the country.

"We are extremely proud of all the remarkable benchmarks reached in 2013. These terrific numbers speak to the diversity of our slate, which has enabled us to deliver great entertainment to a broad range of audiences throughout the year," Fellman said in the statement.

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.62.26
UK Pound	1	Rs.92.49
Euro	1	Rs.67.00

INFORMATION DETAILS

Information Gathered by :	PPT
Analysis Done by :	SUB
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	7
--RESERVES	1~10	3
--CREDIT LINES	1~10	6
--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
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

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

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