MIRA INFORM REPORT

BUSINESS INFORMATION REPORT

1. Summary Information

		Country	India
Company Name	FUNDAMENTAL ELECTRONICS PRIVATE LIMITED	Principal Name 1	Mr. Sanjay Taneja
Status	Satisfactory	Principal Name 2	Mr. Ved prakash taneja
		Registration #	21-71572
Street Address	6, Waterloo Street, 4^th Floor, Room No. 402, Kolkata – 700 069, West Bengal, India
Established Date	18.05.1995	SIC Code	-
Telephone#	91-33-22480565	Business Style 1	Dealer
Fax #	-	Business Style 2	-
Homepage	-	Product Name 1	Electronics
# of employees	-	Product Name 2	Electrical Goods
Paid up capital	Rs.5,000,000/-	Product Name 3	-
Shareholders	Directors or Relatives of Directors – 100%	Banking	· Punjab National Bank · Oriental Bank of Commerce
Public Limited Corp.	NO	Business Period	15 YEARS
IPO	NO	International Ins.	-
Public Enterprise	NO	Rating	Ba (45)
Related Company
Relation	Country	Company Name	CEO
-	-	-	-
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2010		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	16,591,000	Current Liabilities	23,063,000
Inventories	26,176,000	Long-term Liabilities	30,682,000
Fixed Assets	32,400,000	Other Liabilities	717,000
Deferred Assets	0,000,000	Total Liabilities	54,462,000
Invest& other Assets	0,000,000	Retained Earnings	15,705,000
		Net Worth	20,705,000
Total Assets	75,167,000	Total Liab. & Equity	75,167,000
Total Assets (Previous Year)	66,677,000
P/L Statement as of	31.03.2010		(Unit: Indian Rs.)
Sales	281,086,000	Net Profit	5,069,000
Sales(Previous yr)	195,613,000	Net Profit(Prev.yr)	577,000

MIRA INFORM REPORT

Report Date :

11.05.2011

IDENTIFICATION DETAILS

Name :	FUNDAMENTAL ELECTRONICS PRIVATE LIMITED

Formerly Known As :	FUNDAMENTAL FINVEST PRIVATE LIMITED

Registered Office :	6, Waterloo Street, 4^th Floor, Room No. 402, Kolkata – 700 069, West Bengal

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	18.05.1995

Com. Reg. No.:	21-71572

Capital Investment / Paid-up Capital :	Rs. 5.000 millions

CIN No.: [Company Identification No.]	U32109WB1995PTC071572

TAN No.: [Tax Deduction & Collection Account No.]	CALF00789F

PAN No.: [Permanent Account No.]	AAACF3671P

Legal Form :	Private Limited Liability Company

Line of Business :	Dealer of Electronics and Electrical Goods

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 83000

Status :	Satisfactory

Payment Behaviour :	Usually Correct

Litigation :	Clear

Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealing 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.

ECGC Country Risk Classification List – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

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

LOCATIONS

Registered Office :	6, Waterloo Street, 4^th Floor, Room No. 402, Kolkata – 700 069, West Bengal, India
Tel. No.:	91-33-22480565
E-Mail :	funvest@sify.com compare17@rediffmail.com

DIRECTORS

As on : 28.09.2010

Name :	Mr. Sanjay Taneja
Designation :	Director
Address :	Loudon Park, (Flat No. 7B), 16/1, Loudon Street, Kolkata – 700 017, West Bengal, India
Date of Birth/Age :	24.10.1966
Date of Appointment :	02.09.1998

Name :	Mr. Ved Prakash Taneja
Designation :	Director
Address :	Loudon Park, (Flat No. 7B), 16/1, Loudon Street, Kolkata – 700 017, West Bengal, India
Date of Birth/Age :	02.09.1934
Date of Appointment :	02.08.1998

Name :	Mr. Murli Lalchandani
Designation :	Director
Address :	E -3, Middleton Apartment, 3 Middleton Road, Kolkata – 700 071, West Bengal, India
Date of Birth/Age :	16.05.1950
Date of Appointment :	25.08.2003

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 28.09.2010

Names of Shareholders	No. of Shares

Sanjay Taneja	76400
Ved Prakash Taneja	30100
Murli Lalchandani	197500
Savitri Taneja	44000
Shikha Taneja	22000
Pulak Taneja	100000
Ved P. Taneja and Sons (HUF)	10000
Sanjay Taneja and Sons (HUF)	10000
Surat Lalchandani	10000

Total	500000

As on 29.09.2010

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		100.00

BUSINESS DETAILS

Line of Business :	Dealer of Electronics and Electrical Goods

Products :	Electronics Items

GENERAL INFORMATION

Bankers :

· Punjab National Bank

Address : Lyous Road Branch, 1 RN Mukherjee Road, Calcutta – 700 001, West Bengal, India

· Oriental Bank of Commerce

Address: Ballygunge Branch, 56, Gariahat Road, Kolkata – 700 019, West Bengal, India

Facilities :

Secured Loans :

	As on 31.03.2010 Rs. in Millions	As on 31.03.2009 Rs. in Millions
Overdraft From O.B.C. (Against mortgaged of City Centre Showroom and personal guarantee of Directors)	16.919	14.655
Car credit from OBC (Against pledge of stock and personal guarantee of Directors)	1.010	4.627
Car Loan from ICICI Bank (Against Hypothecate of Motor Car)	0.000	0.100
Car Loan from Axis Bank (Against Hypothecate of Motor Car)	0.252	0.361
Total	18.182	19.743

Unsecured Loans :

	As on 31.03.2010 Rs. in Millions	As on 31.03.2009 Rs. in Millions
From Body-Corporate (In which Directors of the company are Directors)	0.000	5.550
From Shareholders	4.100	5.050
From Directors	8.400	4.400
Total	12.500	15.000


Banking Relations :	--

Auditors :
Name :	S K Jhunjhunwala and Associates Chartered Accountants
Address :	Aloka House, 6B, Bentick Street, 1^st Floor, Kolkata – 700 001, West Bengal, India
Tel. No.:	91-33-22486901/ 22315632
Mobile No.:	91-9830172573

CAPITAL STRUCTURE

As on 29.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount

500000	Equity Shares	Rs.10/- each	Rs.5.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

500000	Equity Shares	Rs.10/- each	Rs.5.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		5.000	5.000	5.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		15.705	10.636	10.059
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		20.705	15.636	15.059
LOAN FUNDS
1] Secured Loans		18.182	19.743	12.956
2] Unsecured Loans		12.500	15.000	10.900
TOTAL BORROWING		30.682	34.743	23.856
DEFERRED TAX LIABILITIES		0.717	0.422	0.464

TOTAL		52.104	50.801	39.379

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		32.400	33.271	12.199
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	26.176	19.318	19.877
	Sundry Debtors	6.732	2.674	3.241
	Cash & Bank Balances	1.168	1.388	1.427
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	8.691	10.026	18.604
Total Current Assets		42.767	33.406	43.149
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	18.083	12.677	13.109
	Provisions	4.980	3.199	2.860
Total Current Liabilities		23.063	15.876	15.969
Net Current Assets		19.704	17.530	27.180

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		52.104	50.801	39.379

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	281.086	195.613	134.425
		Other Income			10.948
		TOTAL	281.086	195.613	145.373

	EXPENSES
		Increase/(Decrease) in Finished Goods			(11.393)
		Purchases			142.018
		Personnel Expenses	280.589	194.179	0.943
		Finance Charges			2.736
		Administrative & Selling Expenses			6.951
		Depreciation & Amortization			1.117
		TOTAL	280.589	194.179	142.372

	PROFIT BEFORE TAX		7.355	0.874	3.001

Less	TAX		2.286	0.297	0.998

	PROFIT AFTER TAX		5.069	0.577	2.003

	Earnings Per Share (Rs.)		10.14	1.15	4.01

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.80	0.29	1.38

Net Profit Margin (PBT/Sales)	(%)	2.61	0.45	2.23

Return on Total Assets (PBT/Total Assets}	(%)	9.75	1.31	5.42

Return on Investment (ROI) (PBT/Networth)		0.35	0.06	0.20

Debt Equity Ratio (Total Liability/Networth)		2.59	3.24	2.64

Current Ratio (Current Asset/Current Liability)		1.85	2.10	2.70

LOCAL AGENCY FURTHER INFORMATION

WORKING RESULT:

They are the showroom owner of Samsung in Kolkata having two showrooms located at prime located at prime location of Gariahat and Saltlake city and one show-room at South City Mall. Where electronics items of leading Brands are being sold. The company has recently added one more showroom at Netaji Nagar, which is also a multi branded electronics showroom.

During the year the profit before Tax has increased from Rs. 0.874 millions to Rs. 7.355 millions mainly due to increase in volume sale from Rs. 180.600 millions to Rs. 258.900 millions. Through depreciation has increased from Rs. 1.570 millions to Rs. 2.554 millions. The company could ménage to increase in its profitability due to cost cutting exercises. The scheme and incentives from PRINCIPALS. Which has increased from Rs. 14.900 millions to Rs. 22.100 millions during the year, has also added in to the profitability of the company bearing unforeseen circumstances the directors of their company are hopeful for similar results in coming years.

Form :8

Bankers Charges Report as per Registry

Name of the company

FUNDAMENTAL ELECTRONICS PRIVATE LIMITED

Presented By

Punjab National Bank

1) Date and description of instrument creating the change

Term Loan Agreement dated 05.08.2004

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 5.000 millions

(Overall limit)

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Equitable mortgage in respect of Shop No. B 008 at City Centre, Slat Lake, Calcutta admeasuring 2190 Sq.fts Super Built up area.

4) Gist of the terms and conditions and extent and operation of the charge.

Interest Commission as may be fixed by the Bank form time to time

5) Name and Address and description of the person entitled to the charge.

Punjab National Bank

Address: Lyons Road Branch, 1, R N Mukherjee Road, Calcutta – 700 001, India

6) Date and brief description of instrument modifying the charge

Hypothecation of assets to secure Term Loan dated 15.02.2005 for Rs. 0.900 million

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

By this modification fresh term loan of Rs. 0.900 millions has been sanctioned by the bank. The overall limit thus stands enhanced from Rs. 5.000millions to Rs. 5.900 millions consisting of following facilities:

TL (Existing)	Rs. 5.000 millions
TL (Fresh)	Rs. 0.900 million
Total	Rs. 5.900 millions

Interest / commission as may be fixed by the bank from time to time

Other terms and conditions remain unchanged

This form is for	Creation of charge
Corporate identity number of the company	U32109WB1995PTC071572
Name of the company	FUNDAMENTAL ELECTRONICS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	6, Waterloo Street, 4^th Floor, Room No. 402, Kolkata – 700 069, West Bengal, India
Type of charge	Immovable Property Book Debts Movable Property
Particular of charge holder	Oriental Bank of Commerce, Ballygunge Branch, 56, Gariahat Road, Kolkata – 700 019, West Bengal, India E-Mail: sushiltiwari_associates@rediffmail.com
Nature of description of the instrument creating or modifying the charge	Agreement of Hypothecation of assets. Letter regarding creation/ extension of equitable mortgage.
Date of instrument Creating the charge	09.07.2008
Amount secured by the charge	Rs.7.500 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Interest @ 13.75% or as may be fixed by the Bank from time to time. Terms of Repayment: The facility granted is C.C. and is repayable on demand. Margin: 25% Extent and Operation of the charge: 1. Hypothecation by way of first charge all the company’s stocks and book debts and entire fixed assets, both present and future. 2. Equitable mortgage by deposit of title deeds in respect of commercial space no.B-008, Ground Floor, City Centre, Plot No.1, Block DC, Salt Lake City, Sector-I, Kolkata-700 064.
Short particulars of the property charged	Hypothecation by way of first charge all the company’s stocks and book debts and entire fixed assets, both present and future. Equitable mortgage by deposit of title deeds in respect of commercial space no.B-008, Ground Floor, City Centre, Plot No.1, Block DC, Salt Lake City, Sector-I, Kolkata-700 064. (The title deeds pertaining to the aforesaid properties were already deposited earlier with bank to secure other facilities granted to the Company.)

FIXED ASSETS:

v Air Conditioner

v Auto Van

v By-Cycle

v Computer and Software

v Fax Machine

v Fire Extinguisher

v Cable Instrument

v Furniture and Fixtures

v Motor Car

v Shop at City Centre

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 records 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. 44.73
UK Pound	1	Rs. 73.20
Euro	1	Rs. 63.90

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	5
--CREDIT LINES	1~10	5
--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		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.

BUSINESS INFORMATION REPORT

16,591,000

23,063,000

26,176,000

MIRA INFORM REPORT

26.176

19.318

19.877

6.732

2.674

3.241

1.168

1.388

1.427

0.000

0.000

0.000

8.691

10.026

18.604

42.767

33.406

43.149

18.083

12.677

13.109

4.980

3.199

2.860

23.063

15.876

15.969

19.704

17.530

27.180

1.80

0.29

1.38

2.61

0.45

2.23

9.75

1.31

5.42

0.35

0.06

0.20

2.59

3.24

2.64

1.85

2.10

2.70

Unit