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Rating Rationale Brickwork Ratings assigns/reaffirms the rating of ‘BWR AA (SO)’ with Stable Outlook for the Bank Loan Facilities aggregating ` 250 Cr of Reliance Broadcast Network Limited Brickwork Ratings (BWR) has assigned/reaffirmed the following Rating1 for the Bank Loan Facilities of Reliance Broadcast Network Limited (‘RBNL’ or ‘the Company’). Limits (` Cr) Facility* Tenure Rating Previous Present Fund Based BWR AA (SO) 230 230 Long Term Term Loan [BWR Double A Non-Fund Based (Structured Obligation)] - 20 Long Term Bank Guarantee Outlook: Stable Total 230 250 INR Two Hundred and Fifty Crores Only *Details of the Bank Facilities is as per Annexure I Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. The letters ‘SO’ indicate the credit enhancement factored on account of the ‘Letter of Comfort’ issued by Reliance Capital Limited in favour of the Banks. BWR has principally relied upon the audited financial results of the Company up to FY16, estimated/ projected financials, publicly available information and information/clarifications provided by the Company’s management. The rating has factored, inter alia, the credit enhancement in the form of Letter of Comfort of one of the shareholder in the Company, viz., Reliance Capital Limited (RCL), (Rated: BWR AAA), which forms the basis for ‘Structural Obligations’ suffix. The rating has not factored a possible change in the ownership/promoter holding of the company, as a result of the proposed strategy of the Reliance Group to exit non-core businesses. In the event of such a change, the rating would be revisited. Background-RBNL Reliance Broadcast Network Limited was incorporated in December 2005 & is part of the Anil Ambani led Reliance Group & specializes in creating & executing integrated media solutions for various brands. It is a multi-media entertainment conglomerate with play across radio, television & television production. Reliance Land Private Limited (RLPL) is the holding Company of RBNL since March 2015 with a holding of 73.64% and Reliance Capital Limited has a holding of 19.80%. It has a diversified media business which includes 92.7 Big FM, an FM Radio network; Big Magic, a National entertainment channel; Big Magic Ganga, a regional entertainment channel for audiences from Bihar, Jharkhand & the Purvanchal region of India; Big Thrill, a male entertainment channel & Big Productions, RBNL’s television content production division. 1 Please refer to www.brickworkratings.com for definition of the Ratings www.brickworkratings.com 1 15 Nov 2016 Promoters & Management Details RBNL has a three-member board comprising of Mr. Anil Sekhri, Mr. Darius Kakalia and Ms. Shubhdarshini Ghosh. It has a team of professional with Mr. Tarun Katial as the CEO and Mr. Asheesh Chatterjee as the CFO of the Company. Financial Performance As per audited financials, RBNL, on a standalone basis, reported an Operating Income of ` 344.88 Cr for FY16 compared to ` 290.09 Cr for FY15. The Company reported PAT of ` 44.59 Cr for FY16 compared to ` 50.55 Cr for FY15, a decline majorly due to the significant growth in financial cost. Net worth of the Company stood at ` 78.19 Cr as of March 31, 2016. Intangible assets of 253 Cr majorly include the Radio Broadcasting License. The company had borrowings (Long Term & Short Term) of around ` 1,300 Crores through Bank Loans, NCDs etc. Background-Reliance Capital Limited Reliance Capital Limited, established in 1986, is a systemically important non-deposit taking NBFC. It is part of the Reliance Group led by Mr. Anil Dhirubai Ambani. Currently, it also operates as the holding company for the group’s entities in the financial services sector. The company, along with its subsidiaries and associates, has businesses across the financial services spectrum, such as asset & wealth management services, equities & commodities, commercial and mortgage finance, capital markets, general insurance, life insurance, etc. At consolidated level, it had Total Income from Operations of ` 9,941 Cr compared to ` 8,855 Cr for FY15, a growth of ~12%. PAT increased from ` 1,001 Cr for FY15 to `1,101 Cr for FY16. Tangible Net worth of the Company had increased from ` 13,760 Cr as of March 31, 2015 to ` 15,390 Cr as of March 31, 2016. The rating of RCL has been put under watch with developing implication and our publication dated May 05, 2016 can be referred for details. Rating Outlook The outlook is expected to be stable over the current year. Going forward, the ability of the Company to achieve its financial projections, meet its financial obligations in a timely manner with support from Promoters would be the key rating sensitivities. The rating will be revisited in the event of any change in the ownership or structure of share-holding. Analyst Contact Relationship Contact [email protected] [email protected] Phone Media Contact 1-860-425-2742 [email protected] Disclaimer: Brickwork Ratings (BWR) has assigned the rating based on the information obtained from the issuer and other reliable sources, which are deemed to be accurate. BWR has taken considerable steps to avoid any data distortion; however, it does not examine the precision or completeness of the information obtained. And hence, the information in this report is presented “as is” without any express or implied warranty of any kind. BWR does not make any representation in respect to the truth or accuracy of any such information. The rating assigned by BWR should be treated as an opinion rather than a recommendation to buy, sell or hold the rated instrument and BWR shall not be liable for any losses incurred by users from any use of this report or its contents. BWR has the right to change, suspend or withdraw the ratings at any time for any reasons. www.brickworkratings.com 2 15 Nov 2016 Reliance Broadcast Network Limited Annexure I: Details of the Bank Facilities being rated O/S as of Amount being Limit Bank Facility 30-Sep-2016 rated (` Cr) (` Cr) (` Cr) IndusInd Term Loan 230 230 230 Bank Yes Bank Bank Guarantee 20 NA 20 www.brickworkratings.com 3 15 Nov 2016 .

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