MIRA INFORM REPORT

Report Date :

08.08.2012

IDENTIFICATION DETAILS

Name :	FRONTLINE ELECTRONICS LIMITED
Registered Office :	EL 35, Electronic Zone, MIDC, Bhosari, Pune-411026, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Year of Establishment :	04.01.1993
Com. Reg. No.:	11-070281
Capital Investment / Paid-up Capital :	Rs. 50.000 Millions
CIN No.: [Company Identification No.]	U52334PN1993PLC070281
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Service Provider of Power Controllers and Instrumentation Control
No. of Employees :	Information not given by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 660000
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 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.

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 DECLINED BY

Management non co-operative

LOCATIONS

Registered Office :	EL 35, Electronic Zone, MIDC, Bhosari, Pune-411026, Maharashtra
Tel. No.:	91-20-64102363
Fax No.:	Not Available
E-Mail :	vnt@vsnl.net

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Meghnad Sudhirchandra Shah
Designation :	Managing Director
Address :	Serengati Plot No.5 and 6, Philips Society, Wanwadi, Pune-411040, Maharashtra, India
Date of Birth/Age :	10.07.1965
Date of Appointment :	04.01.1993
DIN No.:	01085771
Name :	Mr. Neelam Sanjay Jandial
Designation :	Director
Address :	Bunglow No.30, Khun Road, Camp, Pune-411001, Maharashtra, India
Date of Birth/Age :	23.11.1969
Date of Appointment :	30.09.2002
DIN No.:	02297571
Name :	Ms. Lata S Parwanishah
Designation :	Whole Time Director
Address :	Serengati Plot No.5 and 6, Philips Society, Wanwadi, Pune-411040, Maharashtra, India
Date of Birth/Age :	05.05.1975
Date of Appointment :	01.06.2010
DIN No.:	03097231

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Meghnad Sudhirchandra Shah	3532950
Neelam Sanjay Jandial	1026050
Purvi Patiwana	65925
Comfortzone Electronics Innovations Limited, India	375000
Lata S Parwanishah	25
Shubhangi Tapasvi	25
Pushpa Parwani	25
TOTAL	5000000

AS ON 30.09.2011

Equity Shares Break Up	Percentage of Holding
Bodies corporate	7.50
Directors or relatives of Directors	92.49
Other top fifty shareholders	0.01
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Service Provider of Power Controllers and Instrumentation Control

PRODUCTION STATUS (AS ON : 31.03.2011)

Actual Production

549496

GENERAL INFORMATION

No. of Employees :

Information not given by the management

Bankers :

Not Available

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Rupee term loans secured
Rupee term loans others secured	0.018	0.000
TOTAL	0.018	0.000

Banking Relations :	--
Auditors :
Name :	Triveni Tapasvi and Associates Chartered Accountants
Address :	Pune-101002, Maharashtra, India
Pan No.:	AACFT4750G

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs. 50.000 Millions

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		50.000	50.000	50.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		115.535	99.287	84.647
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		165.535	149.287	134.647
LOAN FUNDS
1] Secured Loans		0.018	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.018	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		165.553	149.287	134.647
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		62.610	54.895	62.367
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		32.753	31.107	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	17.440	7.284	9.948
	Sundry Debtors	31.273	26.637	65.793
	Cash & Bank Balances	24.989	29.811	7.619
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	12.269	12.930	7.389
Total Current Assets		85.971	76.662	90.749
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	8.023	7.753	12.343
	Other Current Liabilities	1.838	2.149	2.422
	Provisions	6.064	3.642	3.908
Total Current Liabilities		15.925	13.544	18.673
Net Current Assets		70.046	63.118	72.076
MISCELLANEOUS EXPENSES		0.144	0.167	0.204
TOTAL		165.553	149.287	134.647

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	170.511	152.400	156.570
		Other Income	3.547	1.407	0.152
		TOTAL (A)	174.058	153.807	156.722
Less	EXPENSES
		Consumption Materials Changes Inventories	92.187	89.423
		Manufacturing Service Costs	41.561	28.092	132.744
		Administrative Selling Others Expenses	10.044	10.903
		TOTAL (B)	143.792	128.418	132.744
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		30.266	25.389	23.978
Less	FINANCIAL EXPENSES (D)		0.236	0.023	0.032
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		30.030	25.366	23.946
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.655	4.897	5.649
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		24.375	20.469	18.297
Less	TAX (H)		5.419	2.819	2.886
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		18.956	17.650	15.411
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		72.200	54.550	39.139
	BALANCE CARRIED TO THE B/S		91.156	72.200	54.550
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.968	2.015	NA
	IMPORTS
		Raw Materials	46.626	33.483	NA
		Capital Goods	15.958	0.153	NA
	TOTAL IMPORTS		62.584	33.636	NA
	Earnings / (Loss) Per Share (Rs.)		3.79	3.53	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	10.89	11.48	9.83
Net Profit Margin (PBT/Sales)	(%)	14.30	13.43	11.69
Return on Total Assets (PBT/Total Assets}	(%)	16.40	15.55	11.95
Return on Investment (ROI) (PBT/Networth)		0.15	0.14	0.14
Debt Equity Ratio (Total Liability/Networth)		0.10	0.09	0.14
Current Ratio (Current Asset/Current Liability)		5.40	5.66	4.85

LOCAL AGENCY FURTHER INFORMATION

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	No
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	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
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	Yes
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

DETAILS OF SUNDRY CREDITORS:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Sundry Creditors	8.023	7.753	12.343

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. 55.49
UK Pound	1	Rs. 86.39
Euro	1	Rs. 68.69

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	DPT / TPT

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	7
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--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		50

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.