MIRA INFORM REPORT

Report Date :

22.02.2013

IDENTIFICATION DETAILS

Name :	MAXTONE ELECTRONICS PRIVATE LIMITED
Registered Office :	Unit No. 414, Creative Industrial Estate, N. M. Joshi Marg, Lower Parel, Mumbai – 400 011, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	23.06.1994
Com. Reg. No.:	11-079143
Capital Investment / Paid-up Capital :	Rs. 30.705 millions
CIN No.: [Company Identification No.]	U32109MH1994PTC079143
TAN No.: [Tax Deduction & Collection Account No.]	MUMM20951A
PAN No.: [Permanent Account No.]	AABCM5324K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Distributor of computer hardware, electronic items, telecommunication, electric equipments, computer, peripherals, plotters, mechanical instruments, visual display, etc.
No. of Employees :	40 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 222000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Latest financials i.e. 2011-12 are missing from the government department. From the previous year’s financials, it seems that profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are unknown. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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 PARTED BY (General Details)

Name :	Mr. Naresh
Designation :	Finance Head
Contact No.:	91-22-40333000
Date :	20.02.2013

LOCATIONS

Registered Office / Godown / Corporate office :	Unit No. 414, Creative Industrial Estate, N. M. Joshi Marg, Lower Parel, Mumbai – 400 011, Maharashtra, India
Tel. No.:	91-22-40333000
Fax No.:	91-22-23011818 / 3001370
E-Mail :	maxtone@vsnl.com meplsales@maxtone.com
Factory 1 :	26, Shri Balaji Nagar, Near Bala Masjid, N. M. Joshi Marg, Lower Parel (East), Mumbai, Maharashtra, India
Branches :	Located at: · Pune · Ahmedabad · Cochin · Kolkata · Raipur · Bangalore · Indore · Nagpur

DIRECTORS

As on 30.09.2011

Name :	Mr. Champakraj J. Gurjar
Designation :	Director
Address :	220, Shivaji Nagar, N. M. Joshi Marg, Mumbai – 400 013, Maharashtra, India
Date of Birth/Age :	23.04.1956
Qualification :	Graduate
Date of Appointment :	23.06.1994
DIN No.:	01712070
Name :	Mr. Kantilal J. Gurjar
Designation :	Director
Address :	121, Shivaji Nagar, N. M. Joshi Marg, Mumbai – 400 013, Maharashtra, India
Date of Birth/Age :	17.08.1952
Qualification :	Matriculate
Date of Appointment :	23.06.1994
DIN No.:	00097883

KEY EXECUTIVES

Name :	Mr. Naresh
Designation :	Finance Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Chanpakraj J. Gurjar	280968
Kantilal J. Gurjar	2712
Pamiben J. Gurjar	2400
Manjula K. Gurjar	1140
Indra C. Gurjar	2160
Aruna S. Gurjar	2160
Subhash J. Gurjar	3852
pradeep Shetty	5960
TOTAL	301352

As on 07.10.2011

Names of Alloottes	No. of Shares
Chanpakraj J. Gurjar	5700

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Directors or relatives of directors	98.02
Other top fifty shareholders	1.98
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing and Distributor of computer hardware, electronic items, telecommunication, electric equipments, computer, peripherals, plotters, mechanical instruments, visual display, etc.
Terms :
Selling :	Cash / Credit
Purchasing :	Cash / Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

40 (Approximately)

Bankers :

Yes bank Limited, 9^th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai – 400 018, Maharashtra, India [Tel. No.: 91-22-66699000]

Facilities :

Secured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Working capital loans others secured	19.936	0.000
Loans directors secured	8.881	9.153
Loans taken for fixed assets secured	1.886	0.018
Other debt secured	64.457	52.583
Total	95.160	61.754

Banking Relations :	--
Financial Institution :	Tata Capital Limited, One Forbes, Dr V B Gandhi Marg, Fort, Mumbai-400001, Maharashtra, India
Auditors :
Name :	P. Raj and Company Chartered Accountants
Address :	3/1218, Navjivan Commercial Premises Co-Operative Society Limited, Lamington Road, Mumbai – 400 008, Maharashtra, India
PAN No.:	ANCPS2268R
Associates/Subsidiaries :	· Mai – Tai Infotech Private Limited Address: Mumbai, Maharashtra, India Line of Business: Distribution of Technology Products.

CAPITAL STRUCTURE

After 30.09.2011

Authorized Capital:

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.100/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
307052	Equity Shares	Rs.100/- each	Rs.30.705 Millions

As on 31.03.2011

Authorized Capital:

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.100/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
295392	Equity Shares	Rs.100/- each	Rs. 29.539 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		29.539	29.539	29.539
2] Share Application Money		2.000	0.000	0.000
3] Reserves & Surplus		24.190	15.107	8.564
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		55.729	44.646	38.103
LOAN FUNDS
1] Secured Loans		97.160	61.754	19.738
2] Unsecured Loans		0.000	0.668	3.097
TOTAL BORROWING		97.160	62.422	22.835
DEFERRED TAX LIABILITIES		1.934	1.537	1.316
TOTAL		154.823	108.605	62.254
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		34.381	13.958	14.033
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		51.232	48.025	0.005
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	118.347	76.932	73.374
	Sundry Debtors	156.466	136.096	106.273
	Cash & Bank Balances	7.681	2.613	8.492
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	32.262	20.611	21.927
Total Current Assets		314.756	236.252	210.066
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	232.231	188.152	161.063
	Other Current Liabilities	12.267	0.000	0.000
	Provisions	1.048	1.478	0.787
Total Current Liabilities		245.546	189.630	161.850
Net Current Assets		69.210	46.622	48.216
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		154.823	108.605	62.254

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
TURNOVER		1297.600	1030.900	1027.200
PROFIT AFTER TAX		9.954	7.326	4.670
IMPORTS
	Electronics Goods	11.433	76.909	79.534
TOTAL IMPORTS		11.433	76.909	79.534
Earnings Per Share (Rs.)		33.09	24.49	15.81

KEY RATIOS

PARTICULARS	31.03.2011	31.03.2010	31.03.2009
Debt Equity Ratio (Total Debt/Networth)	1.74	1.40	0.59
Current Ratio (Current Asset/Current Liability)	1.28	1.25	1.30

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors due to Micro, Small and Medium Enterprises	0.000	0.000	0.000
Sundry Creditors due to Others	232.231	188.152	161.063
Total	232.231	188.152	161.063

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	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	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	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	No
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	No
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

FINANCIAL RESULTS:-

The turnover of the company was higher at Rs.1297.600 Millions in the current year as against Rs.1030.900 Millions in the corresponding previous year & the Net Profit after tax has gone up sharpely at Rs.9.954 Million as compared to Rs.7.326 Millions in the previous year.

UNSECURED LOAN:

Unsecured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Rupee term loans banks unsecured	0.000	0.539
Other debt unsecured	0.000	0.129
Total	0.000	0.668

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF

(Rs. In Millions)

Particulars	For The Year Ended On
	31.03.2011	31.03.2010
Bank Guarantee	19.350	0.300
Income Tax	0.000	0.141
Sales Tax Disputed Amounts	0.672	0.000

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U32109MH1994PTC079143
Name of the company	MAXTONE ELECTRONICS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	414 Creative Ind Estate, N M Marg, Parel, Mumbai – 400 011, Maharashtra, India e-mail: maxtone@vsnl.com
This form is for	Modification of charge
Charge identification number of the modified	10314285
Type of charge	Immovable Property Any interest in immovable property
Particular of charge holder	Yes Bank Limited, 9^th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai – 400 018, Maharashtra, India e-mail: dlbbcadmum@yesbank.in
Nature of description of the instrument creating or modifying the charge	Memorandum of Equitable Mortgage Dated 18.01.2013
Date of instrument Creating the charge	18.01.2013
Amount secured by the charge	Rs. 45.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Extent and Operation of the charge Exclusive charge on properties Unit 412 4^th floor and Unit B 2 Basement at Creative Industrial Centre Premises, Co-operative Society Limited, N M Joshi Marg, Lower Parel (East), Mumbai – 400 011 in the name of M/s Maxtone Electronics Private Limited to cover following facilities: 1. LuT for Buyer's Credit (BC): Rs. 45.000 millions 2. Letter of Credit (LC) (sublimit of BC): Rs. 45.000 millions 3. Bank Guarantee (BG) (Performance) (sublimit of BC): Rs. 15.000 millions 4. Cash Credit (CC) (sublimit of BC): Rs. 30.000 millions
Date of latest modification prior to the present modification	14.01.2013
Particulars of the present modification	Exclusive charge on properties Unit 412 and Unit B 2 Basement at Creative Industrial Centre Premises Co-op Society Ltd N M Joshi Marg Lower Parel (E) Mumbai to cover: 1. New BC Facility introduced of INR 45 MM 2. LC enhanced from INR 35 MM to 45 MM and converted in to sub limit of BC from stand alone limit 3. Performance Bank Guarantee of INR 15 MM sub limit of LC is converted into sub limit of BC 4. CC enhanced from INR 10 MM to 30 MM and converted into sub limit of BC from stand alone limit

FIXED ASSETS

• Furniture and fixture
• Office Equipment
• Vehicles
• Computer
• Building

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 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.54.48
UK Pound	1	Rs.82.71
Euro	1	Rs.72.23

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	NID

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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.