MIRA INFORM REPORT

Report Date :

03.04.2012

IDENTIFICATION DETAILS

Name :	COSINE ELECTRONICS LIMITED (w.e.f 10.11.2005)
Formerly Known As :	COSINE ELECTRONICS PRIVATE LIMITED
Registered Office :	S-284, Greater Kailash – II, New Delhi – 110048
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	07.12.1988
Com. Reg. No.:	55-034142
Capital Investment / Paid-up Capital :	Rs.1.000 Million
CIN No.: [Company Identification No.]	U31200DL1988PLC034142
TAN No.: [Tax Deduction & Collection Account No.]	DELC06599F
PAN No.: [Permanent Account No.]	AABCC9505G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Trading in Electronics Goods.
No. of Employees :	Not Available

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 49000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Profit margin of the company appears to be low. 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 dealings with 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office :	S-284, Greater Kailash – II, New Delhi – 110048, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	corporate@yahoo.com
Branch Office :	A-316/C, Industrial area, Bhiwai, Alwar - 301019, Rajasthan, India

DIRECTORS

As on 25.09.2010

Name :

Mr. Guru Dutt Shukla

Designation :

Director

Address :

C-13/4, Ground Floor, Tulip Garden, R D City, Gurgaon – 121007, Haryana, India

Date of Birth/Age :

02.01.1950

Date of Appointment :

16.11.1993

DIN No.:

00055463

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U31200DL1988PLC034142	COSINE ELECTRONICS LIMITED	Whole-time director	01-10-10	16-11-93	-	Active	NO
2	U67120DL1993PTC055972	MEDIA HOLDINGS PRIVATE LIMITED	Director	20-08-96	20-08-96	03-03-08	Active	NO
3	U16008DL1997PLC090022	BALAJI TIRUPATI BUILDCON LIMITED	Director	01-05-03	01-05-03	25-05-09	Amalgamated	NO

Name :

Mr. Manoj Kumar

Designation :

Director

Address :

A-142, 3^rd Floor, Gandhi Vihar, Delhi – 110009, India

Date of Birth/Age :

01.07.1972

Date of Appointment :

15.07.2005

DIN No.:

01161508

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U31200DL1988PLC034142	COSINE ELECTRONICS LIMITED	Director	15-07-05	15-07-05	31-12-10	Active	NO
2	U74140DL2011PTC218901	M4U FINANCIAL CONSULTANTS PRIVATE LIMITED	Director	10-05-11	10-05-11	-	Active	NO

Name :

Mrs. Shilpy Dutta

Designation :

Director

Address :

795-B, 102 Sector, Gali No 75B, New Gandhi Colony, Delhi – 121001, India

Date of Birth/Age :

22.07.1985

Date of Appointment :

01.09.2008

DIN No.:

02851765

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.09.2010

Names of Shareholders	No. of Shares
Pawan Rishi	1000
Deepak Rampal	15535
Guru Dutt Shukla	43065
Rajender Arora	7200
Prem Lata Shukla	25100
Manoj Kumar	5000
Jeevanesh Sekhri	3100
TOTAL	100000

Equity Share Break up (Percentage of Total Equity)

As on 25.09.2010

Category	Percentage
Directors or relatives of Directors	80.37
Other top fifty shareholders	19.63
Total	100.00

BUSINESS DETAILS

Line of Business :

Trading in Electronics Goods.

Products :

Product Description	Item Code No.
TV Games	950410
VCD Player	852190

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Punjab National Bank, BO South Extension,N-13, South Extension Part – 1, New Delhi – 110049, India

Facilities :

Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Inter Corporate Deposit from Directors	300.380	14.733
Total	300.380	14.733

Banking Relations :	--
Auditors :
Name :	Sandeep Sarthak and Associates Chartered Accountant
Address :	D-16/60, 1^st Floor, Shiva Road, Rohini, Delhi – 110085, India
Tel. No.:	91-79-27931221
Mobile No.:	91-9810082246
PAN.:	AAIPK1799A

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.10/- each	Rs.1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.10/- each	Rs.1.000 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		1.000	1.000	1.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		11.247	9.488	7.644
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		12.247	10.488	8.644
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		300.379	14.733	13.552
TOTAL BORROWING		300.379	14.733	13.552
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		312.626	25.221	22.196
APPLICATION OF FUNDS
		0.676	0.792	0.908
FIXED ASSETS [Net Block]		0.000	0.000	0.000
Capital work-in-progress
		7.751	7.751	7.751
INVESTMENT		0.093	0.081	0.023
DEFERREX TAX ASSETS
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	81.416	63.184	46.203
	Sundry Debtors	1408.199	887.274	93.465
	Cash & Bank Balances	2.241	91.807	0.410
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	415.915	401.924	409.995
Total Current Assets		1907.771	1444.189	550.073
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1601.506	1426.648	534.709
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	2.159	0.944	1.850
Total Current Liabilities		1603.665	1427.592	536.559
Net Current Assets		304.106	16.597	13.514
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		312.626	25.221	22.196

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales	4696.090	3768.468	3197.314
		Miscellaneous Income	0.366	0.361	1.062
		TOTAL (A)	4696.456	3768.829	3198.376
Less	EXPENSES
		Good Purchase	4691.462	3766.493	3197.514
		Administrative Expenses	0.746	0.600	0.657
		Salaries and Wages	1.546	1.202	0.926
		Selling and Distribution	0.500	0.427	0.440
		Increase and Decrease in Stock	(18.231)	(16.982)	(16.242)
		TOTAL (B)	4676.023	3751.740	3183.295
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		20.433	17.089	15.081
Less	FINANCIAL EXPENSES (D)		17.319	13.973	12.215
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.114	3.116	2.866
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.116	0.116	0.119
	PROFIT BEFORE TAX (E-F) (G)		2.998	3.000	2.747
Less	TAX (H)		1.240	1.157	1.213
	PROFIT AFTER TAX (G-H) (I)		1.759	1.843	1.534
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		7.970	6.127	4.593
	BALANCE CARRIED TO THE B/S		9.729	7.970	6.127
	Earnings Per Share (Rs.)		17.59	18.43	15.34

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.04	0.05	0.05
Net Profit Margin (PBT/Sales)	(%)	0.06	0.08	0.09
Return on Total Assets (PBT/Total Assets}	(%)	0.16	0.21	0.50
Return on Investment (ROI) (PBT/Networth)		0.24	0.29	0.32
Debt Equity Ratio (Total Liability/Networth)		155.47	137.52	63.64
Current Ratio (Current Asset/Current Liability)		1.19	1.01	1.03

LOCAL AGENCY FURTHER INFORMATION

Form 8

Corporate identity number of the company	U31200DL1988PLC034142
Name of the company	COSINE ELECTRONICS LIMITED
Address of the registered office or of the principal place of business in India of the company	S-284, Greater Kailash – II, New Delhi – 110048, India Email: coporates@yahoo.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10017408
Type of charge	Immovable Property
Particular of charge holder	Punjab National Bank, BO: South Extension, N-13, South Extension Part – I, New Delhi – 110049, India Email: asamca@gmail.com
Nature of instrument creating charge	1. Agreement of Guarantee 2. Letter of Continuity
Date of instrument Creating the charge	16.11.2010
Amount secured by the charge	Rs.398.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per sanction terms of working capital limit aggregating to Rs.398.000 millions sanctioned to M/s MVL Industries Limited Terms of Repayment As per sanction terms of working capital limit aggregating to Rs.398.000 millions sanctioned to M/s MVL Industries Limited Margin As per sanction terms of working capital limit aggregating to Rs.398.000 millions sanctioned to M/s MVL Industries Limited Extent and Operation of the charge 100% in favour of Punjab National Bank, BO: South Extension, New Delhi - 110049. Others: Aggregate working capital limit of Rs.398.000 millions as follows : Existing Revised Cash Credit (Stocks) 250.000 250.000 Cash Credit (Adhoc) -- 50.000 ILC/FLC(DA/DP) 95.000 95.000 ILG 3.000 3.000 Total 348.000 398.000
Short particulars of the property or asset(s) charged (including complete address and location of the property)	1st pari passu charge by way of extension of mortgage in respect of company's immovable properties situated at A - 316 - C, RIICO Industrial Area, Bhiwadi (Rajasthan) comprising of land and building, superstructure, plant and machinery and other assets whether constructed or to be constructed, installed to be installed therein, both present and future. The Company has given its corporate guarantee in favour of Punjab National Bank, BO : South Extension, Part - I, New Delhi for securing aggregate credit facility of Rs. 398.000 millions sanctioned to M/s MVL Industries Limited. Company hereby also agrees to pay the bank on demand in writing all principal, interest, costs, charges and expenses due and which may at any time become due to the bank from the borrowing company.
Date of instrument modifying the charge	09.02.2010
Particulars of the present modification	1) Working capital limit sanctioned to M/s MVL Industries Ltd. stand enhanced from Rs.348.000 millions to Rs.398.000 millions on account of sanction Adhoc cash credit limit of Rs.50.000 millions. 2) Enhanced working capital limit shall be secured by the securities as mentioned in Col. No.15(i) to 15(x) above. 3) Terms and conditions as per Col.No.13(a) to 13(e) above, however detailed T&C 4) All other T&C including securities remain the same.

Fixed Assets

• Land
• Building
• Plant and Machinery
• Dies and Moulds
• Office Equipment
• Vehicle
• Electrical Installation
• Furniture and Fixture
• Computers

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.51.16
UK Pound	1	Rs.81.80
Euro	1	Rs.68.34

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	4
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	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	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.