MIRA INFORM REPORT

Report Date :

23.02.2013

IDENTIFICATION DETAILS

Name :	TREND ELECTRONICS LIMITED (w.e.f. 01.05.2007)
Formerly Known As :	VIDEOCON COMMUNICATIONS LIMITED (w.e.f. 26.08.2003) VIDEOCON VCR LIMITED
Registered Office :	20, K. M. Stone, Aurangabad-Beed Road, Village Bhalgaon, Aurangabad – 431 210, Maharashtra
Country :	India
Financials (as on) :	31.12.2011
Date of Incorporation :	16.06.1989
Com. Reg. No.:	11-52233
Capital Investment / Paid-up Capital :	Rs.75.000 Millions
CIN No.: [Company Identification No.]	L99999MH1989PLC052233
TAN No.: [Tax Deduction & Collection Account No.]	PNEV04500G
PAN No.: [Permanent Account No.]	AAACV5946R
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Electrical and Electronics Appliances.
No. of Employees :	800 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 8370000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a well established and reputed company having a moderate track record. There appears some dip in the revenue earned and drastic fall in the profitability during 2012. There appear huge external borrowings. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered normal 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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	A1 (Short term bank facilities)
Rating Explanation	Very strong degree of safety and lowest credit risk
Date	04.11.2010

Rating Agency Name	CARE
Rating	A- (SO) (Long term bank facilities)
Rating Explanation	Adequate degree of safety and low credit risk.
Date	04.11.2010

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

MANAGEMENT NON CO-OPERATIVE (Tel. No.: 91-240-2644509 / 2644510)

LOCATIONS

Registered Office / Factory :	20, K. M. Stone, Aurangabad-Beed Road, Village Bhalgaon, Aurangabad – 431 210, Maharashtra, India
Tel. No.:	91-240-2644509/10/12
Fax No.:	91-240-2644506
E-Mail :	contact@videoconmail.com secretarial1@gmail.com secretarial_trend@videoconmail.com
Website :	http://trendelectronics.in
Corporate Office :	Gut No. 350, Bhalgaon, Beed Road – 431201, Maharashtra, India
Tel. No.:	91-240-2544509 / 510 /512
Fax No.	91-240-2544506
E-Mail :	enquiry@trendelectronics.in

DIRECTORS

As on 29.06.2012

Name :	Mr. Vivek Dattatraya Dharm
Designation :	Director
Address :	D-31, Shree Ramkrishna Colony, Behind Markendeya Society, Savedi, Ahmednagar-414001, Maharashtra, India
Date of Birth/Age :	22.11.1964
Qualification :	Commerce and Law Graduate
Date of Appointment :	08.12.2005
DIN No.:	00214361
Name :	Mr. Bhopinder Jagdish Mittar Chopra
Designation :	Director
Address :	Plot No. 194, N-3, CIDCO, Aurangabad-431001, Maharashtra, India
Date of Birth/Age :	13.11.1934
Qualification :	B.Sc., Post Graduate Diploma in Electrical Communication Engineering
Date of Appointment :	08.12.2005
DIN No.:	00329550
Name :	Mr. Subhash Shripad Nabar
Designation :	Director
Address :	Plot No. 149, CIDCO, N-1, Aurangabad-431001, Maharashtra, India
Date of Birth/Age :	13.07.1947
Qualification :	B.E. (Mechanical)
Date of Appointment :	31.10.2002
DIN No.:	01341057

KEY EXECUTIVES

Name :	Mr. Kanchan A. Kakade
Designation :	Company Secretary
Address :	B-9, Chandrakamal Society, Paud Road, Shivthirthnagar, Pune-411038, Maharashtra, India
Date of Birth/Age :	21.12.1981
Date of Appointment :	05.01.2010
PAN No.:	ADYPN8503G

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.06.2012

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	150	0.00
Bodies Corporate	3678955	49.05
Sub Total	3679105	49.05
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	3679105	49.05
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2400	0.03
Financial Institutions / Banks	1575	0.02
Foreign Institutional Investors	367500	4.90
Sub Total	371475	4.95
(2) Non-Institutions
Bodies Corporate	532212	7.10
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	1994702	26.60
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	764027	10.19
Any Others (Specify)	158479	2.11
Non Resident Indians	158479	2.11
Sub Total	3449420	45.99
Total Public shareholding (B)	3820895	50.95
Total (A)+(B)	7500000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	7500000	0.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Name of the Shareholder	No. of Shares	Percentage of Holding
V N Dhoot	110	0.00
P N Dhoot	10	0.00
R N Dhoot	10	0.00
K N Dhoot	10	0.00
Ramabai V Dhoot	10	0.00
Videocon Industries Limited	14,08,800	18.78
Shree Dhoot Trading and Agencies Limited	1,97,325	2.63
Waluj Components Private Limited	7,10,730	9.48
Dome Bell Electronics India Private Limited	12,50,100	16.67
Evans Fraser and Company India Limited	1,12,000	1.49
Total	36,79,105	49.05

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Name of the Shareholder	No. of Shares	Percentage of Holding
Sunil Ghanshyamdas Khandelwal	145450	1.94
Lotus Global Investment Limited	367500	4.90
Joy Holdings Private Limited	368500	4.91
Kalpana Khandelwal	111017	1.48
Total	992467	13.23

BUSINESS DETAILS

Line of Business :

Manufacturer of Electrical and Electronics Appliances.

Products :

Item Code No. (ITC Code)	Product Description :-
8521.90	DVD
8528.72	Colour TV
8528.71	Set Top Box

GENERAL INFORMATION

No. of Employees :

800 (Approximately)

Bankers :

• State Bank of Hyderabad
• Central Bank of India
• Punjab National Bank
• ING Vysya Bank Limited
• Indian Bank
• Canara Bank
• Allahabad Bank, Industrial Finance Branch, 2^nd Floor, 37, Mumbai Samachar Marg, Fort, Mumbai - 400023, Maharashtra, India

Facilities :

Secured Loan	31.12.2011 (Rs. in Millions)	31.12.2010 (Rs. in Millions)
Working Capital Loans from Banks	2003.390	1754.790
Vehicle Loans from Banks	8.260	0.170
Total	2011.650	1754.960

Note :

a) Working Capital Loans from Banks are secured against hypothecation of the Company’s stock of raw materials, packing materials, stock-in-process, finished goods, stores and spares, book debts and all other current assets of the Company and personal guarantees of Mr. Venugopal N. Dhoot and Mr. Pradipkumar N. Dhoot.

b) Vehicle Loans from Banks are secured by way of hypothecation of vehicles acquired out of the said loan.

Banking Relations :	--
Auditors :
Name 1 :	Khandelwal Jain and Company Chartered Accountants
Address :	12-B, Baldota Bhavan, 117, Maharshi Karve Road, Opposite Churchgate Railway Station, Mumbai - 400 020, Maharashtra, India
PAN No.:	AAAFK0985C
Name 2 :	Kadam and Company
Address :	"Vedant", 8/9, Viraj Estate, Opposite Tarakpur Bus Stand, Ahmednagar – 414003, Maharashtra, India
PAN No.:	AAIFK3708R

CAPITAL STRUCTURE

As on 29.06.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions
10000000	Redeemable Preference Shares	Rs.100/- each	Rs.1000.000 Millions
	Total		Rs. 1250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Shares	Rs.10/- each	Rs.75.000 Millions

As on 31.12.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions
5000000	Redeemable Preference Shares	Rs.100/- each	Rs.500.000 Millions
	Total		Rs. 600.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Shares	Rs.10/- each	Rs.75.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2011 (12 Months)	31.12.2010 (15 Months)	30.09.2009 (12 Months)
SHAREHOLDERS FUNDS
1] Share Capital		75.000	75.000	75.000
2] Share Application Money		1000.000	0.000	0.000
3] Reserves & Surplus		1017.920	965.440	783.580
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2092.920	1040.440	858.580
LOAN FUNDS
1] Secured Loans		2011.650	1754.960	821.730
2] Unsecured Loans		4206.050	4144.290	1699.760
TOTAL BORROWING		6217.700	5899.250	2521.490
DEFERRED TAX LIABILITIES		230.360	212.850	164.090
TOTAL		8540.980	7152.540	3544.160
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2735.070	1730.070	1157.150
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		837.280	337.760	207.120
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3048.920	2747.330	1641.750
	Sundry Debtors	2879.850	2699.710	1451.560
	Cash & Bank Balances	313.920	320.370	224.190
	Other Current Assets	15.440	9.910	6.950
	Loans & Advances	1196.650	1392.220	247.660
Total Current Assets		7454.780	7169.540	3572.110
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2316.910	1906.910	1281.920
	Other Current Liabilities	134.230	112.150	72.260
	Provisions	35.010	65.770	38.040
Total Current Liabilities		2486.150	2084.830	1392.220
Net Current Assets		4968.630	5084.710	2179.890
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		8540.980	7152.540	3544.160

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2011 (12 Months)	31.12.2010 (15 Months)	30.09.2009 (12 Months)
	SALES
		Income	16576.680	18966.930	8271.800
		Other Income	68.490	42.220	3.660
		TOTAL (A)	16645.170	19009.150	8275.460
Less	EXPENSES
		Cost of Goods Consumed/Sold	15275.350	17682.730	7734.870
		Salaries, Wages and Employees’ Benefits	139.450	160.980	68.450
		Manufacturing and Other Expenses	369.830	317.130	204.190
		TOTAL (B)	15784.630	18160.840	8007.510
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)		860.540	848.310	267.950
Less	FINANCIAL EXPENSES (D)		620.630	374.990	97.280
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		239.910	473.320	170.670
	DEPRECIATION/ AMORTISATION (F)		186.480	185.530	115.690
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		53.430	287.790	54.980
Less	TAX (H)		17.580	84.680	18.810
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		35.850	203.110	36.170
Less/ Add	Excess/(Short) Provision of Income Tax for earlier years		16.630	(12.500)	3.730
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		323.590	161.730	134.610
Less	APPROPRIATIONS
		Proposed Dividend	0.000	7.500	7.500
		Corporate Tax on Proposed Dividend	0.000	1.250	1.280
		Transfer to General Reserve	5.000	20.000	4.000
	BALANCE CARRIED TO THE B/S		371.070	323.590	161.730
	IMPORTS
		Raw Materials	3493.480	2883.080	1124.200
		Capital Goods	16.260	14.890	7.000
	TOTAL IMPORTS		3509.740	2897.970	1131.200
	Earnings / (Loss) Per Share (Rs.)		7.00	25.41	5.32

QUARTERLY RESULTS

PARTICULARS	31.03.2012	30.06.2012	30.09.2012
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	3732.600	3613.500	3571.400
Total Expenditure	3628.100	3508.800	3497.200
PBIDT (Excl OI)	104.500	104.700	74.200
Other Income	07.200	06.800	05.500
Operating Profit	111.700	111.500	79.700
Interest	177.300	182.100	193.300
Exceptional Items	0.000	0.000	0.000
PBDT	(65.600)	(70.600)	(113.600)
Depreciation	50.200	51.100	51.800
Profit Before Tax	(115.800)	(121.700)	(165.400)
Tax	(37.500)	(40.000)	(50.000)
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	(78.300)	(81.700)	(115.400)
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	(78.300)	(81.700)	(115.400)

KEY RATIOS

PARTICULARS		31.12.2011 (12 Months)	31.12.2010 (15 Months)	30.09.2009 (12 Months)
PAT / Total Income	(%)	0.22	1.07	0.44
Net Profit Margin (PBT/Sales)	(%)	0.32	1.52	0.64
Return on Total Assets (PBT/Total Assets}	(%)	0.52	3.23	1.16
Return on Investment (ROI) (PBT/Networth)		0.03	0.28	0.06
Debt Equity Ratio (Total Debt/Networth)		2.97	5.67	2.94
Current Ratio (Current Asset/Current Liability)		3.00	3.44	2.57

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.12.2011 (12 Months)	31.12.2010 (15 Months)	30.09.2009 (12 Months)
	(Rs. In Millions)
Due to Micro, Small and Medium Enterprises	0.000	0.000	0.000
Due to others	2316.910	1906.910	1281.920
Total	2316.910	1906.910	1281.920

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	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)	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	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	Yes

NOTE:

The registered office of the company has been shifted from 21, K M Store Aurangabad, Beed, Village Bhalg, District, Aurangabad, Maharashtra, India to the present address w.e.f. 09.10.1995

OPERATIONS

During the year, the first three quarters were reasonably good, whereas there was decline in the demand during the last quarter. Though the Company was able to achieve reasonable growth in net sales, the profitability was affected on account of increase in raw material costs, rising interest rates and intense competition. As a result, there was a decline in the profit after tax from Rs. 203.110 Millions to Rs.35.850 Millions.

FUTURE PLAN OF ACTION:

In near future, the Company shall continue to focus on all the areas mentioned earlier and also aims to offer new technologies and processes to provide better products at affordable prices to the customers. The Company shall continue to rollout innovative products, which is in line with its ideology of bringing about change combined with quality that is trusted by the millions of customers.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENTS

In the mixed picture presented on global scenario, Indian Economy has emerged with remarkable rapidity from the slowdown caused by global financial crisis from 2007-2009. However, continued high inflation and temporary slowdown in the industrial growth is adding uncertainty to the pace of global recovery.

The consumer electronics and home appliance industry market in India is growing at a steady pace and sees a stable demand in the coming period.

The Company primarily focuses on manufacturing of Colour Televisions, DVDs, and Set Top Boxes.

Colour Televisions:

Colour Television continues to be the main product of the Consumer Electronics Industry in India. Though CRT segment dominated the Indian television market, there is a rapid growth in demand for LCD and LED TVs. Consumer preference is increasing for high definition TV with better image quality, high & clear audio output and better colour resolution.

LCD and LEDs TVs are replacing older CRT TVs for a number of reasons such as LCDs and LEDs take up less space than bulky CRT TVs, consume less energy and are free from the radiation that is emitted from cathode rays in the CRT TVs. As a result, the sleek, energy efficient LCD and LED TVs have been at the top of the wish list for many consumers around the world.

LCD TV sales in India are gaining momentum. The allure and declining prices of LCD TV along with increased consumer awareness have spurred the sales of the LCD TVs and eroded the dominance of CRT TVs.

A sharp growth is expected in the LED TV market in the forthcoming years. Considering the availability in all sizes and the reduction in prices, the LED TV is poised to transform the existing premium category to a generalised category. Eco-friendliness, saving in power consumption and ultra slim features will accelerate the transformation of LED TVs. This is in line with the global trend.

LCD and LED TVs have created a new lifestyle as consumers are becoming more aware of the benefits. Technology upgradation is happening in a short span of time with many new innovations like organic LED TV, 3D TV, wireless connectivity, net-connected TV (Smart TV), borderless design, home automation system and sensor-based applications. Consumer interest is also growing in new audio visual experiences, made possible by products such as home theatres and wall mounted monitors.

The Flat Panel Display (FPD) market is marching at a rapid pace towards upgraded technology, attractive designs and slim models.

The Company plans to focus on launching more innovative products in LCD, LED, and Digital TV segments.

DVDs:

In India, the popularity of DVD players is fading, due to the growth of Direct To Home (DTH) sector. With availability of more than 200 channels and movies on demand, the DTH services are gradually eating into DVD players market share pie. Other reasons being TVs and LCDs having the functionality of playing music and videos through USBs and USBs becoming a popular data storage device. However, the rural market is showing preference for DVD players and driving its sales.

Set Top Boxes:

Set Top Box (STB) is increasingly seen as a game changer in TV Broadcasting industry, which is easily deployable in living rooms. It is fuelling consumer appetite for ‘high-quality’ digital picture displayed on big screen TVs including fast growing LCD TV segment. Sale of LCD TVs in India is doubling year on year.

As per guidelines issued by Indian Government, Digital Addresable System (DAS) has to be implemented across the country in coming years which would open a new era in digital technology. STB manufactured by the Company, is complying with the said new guidelines issued by the Government.

Some of the growth drivers for STBs include:

· availability of more and more High Definition Channels which have very high picture and sound resolution resulting in sharper picture and theatre sound quality;

· availability of movie channels online;

· availability of TV services in remote areas via DTH;

· affordability-technically and commercially digital picture quality; and

· online shopping and gaming.

Going forward, customer shall expect even more channels, high picture quality, hard drives for digital video recording, IP connections, to access additional content via an IP network, return path for online polling and reality show participation etc. This is not possible without advancements in the underlying STB technology.

The penetration in DTH is happening at a much faster rate than expected under continued investment by the DTH players and increase in the affordability on account of rise in disposable income. This phenomenon is likely to continue which would be further led by the digitalisation push by the Government, lower entry cost in the DTH service and wide variety of choice being offered by the DTH operators. The STB segment therefore, is poised for significant growth in the coming years.

The Company is engaged in developing and manufacturing STBs. The Company is pioneer in the Indian DTH market through continuous product innovations and upgrade of technology. The Videocon d2h Satellite STB is available with DVR. It offers several High Definition (HD) channels and users can pause, rewind, forward live TV and can also record up to 200 hours.

The next level of DTH regime will be led by technology innovations such as HD STB, STB with video recorders and 3D ready STB. These new products coupled with launch of niche, HD content will address emerging consumer needs and drive higher engagement.

OUTLOOK

In the times to come, product strength, product mix and a well-established distribution network, after-sales service and technological superiority would be the key factors to determine the competitive advantage of industry players. The Company is determined to make available its products with latest technology, which are environment friendly, energy efficient and economical.

UNSECURED LOAN

Unsecured Loan	31.12.2011 (Rs. in Millions)	31.12.2010 (Rs. In Millions)
From Banks
Rupee Loan	2026.050	2999.990
Foreign Currency Loan	348.350	302.250
Sales Tax Deferral	831.650	842.050
From Others	1000.000	0.000
Total	4206.050	4144.290

The Company has availed interest free Sales Tax Deferral under package incentive scheme of 1993. The sales tax collected during the deferral period is payable in five annual installments, after completion of ten years from the year in which the tax was collected. The next such installment is due on 1st May, 2012.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	L99999MH1989PLC052233
Name of the company	TREND ELECTRONICS LIMITED
Address of the registered office or of the principal place of business in India of the company	20, K. M. Stone, Aurangabad-Beed Road, Village Bhalgaon, Aurangabad – 431 210, Maharashtra, India Email: secretarial_trend@videoconmail.com
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge) Others (Current Assets)
Particular of charge holder	Allahabad Bank, Industrial Finance Branch, 2^nd Floor, 37, Mumbai Samachar Marg, Fort, Mumbai - 400023, Maharashtra, India Email : br.mumib@allahabadbank.in
Nature of instrument creating charge	General Letter of Hypothecation dated 13th December, 2012 executed by Trend Electronics Limited (the Company) in favour of Allahabad Bank (the Bank)
Date of instrument Creating the charge	13.12.2012
Amount secured by the charge	Rs. 5000.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Floating Rate of Interest at the rate of 4% over Allahabad Bank's Base Rate which is at present 10.5% per annum with monthly rests. Terms of Repayment For a period of one year Extent and Operation of the charge The subservient charge operates as inter alia, security for the due repayment, redemption and discharge by the Company of the term loan facility of Rs. 5000.000 millions availed by the Company from the Bank together with all interest, additional interest, default interest and any other amounts, fees, costs, charges, expenses and other monies due and payable to the Lender under the Facility Agreement. Others As may be agreed to between the Company and the Bank from time to time.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Subservient charge by way of hypothecation of the Company's entire movables, including movable machinery, machinery spares, tools and accessories, furniture and fixtures, vehicles and all other movable assets including stock of raw materials, consumable stores etc. present and future and on the current assets both present and future of the Company more specifically described in the Schedule of the General Letter of Hypothecation copy whereof is attached to this form.

CONTINGENT LIABILITIES:

(Rs. in millions)

Particulars	31.12.2011 (12 Months) Rs. in millions
Letters of Guarantees	56.420
Letters of Credit opened	758.920
Customs Duty demands and penalty under dispute	8.090
Excise Duty demands under dispute	4.260
Service Tax demands under dispute	8.040
Sales Tax demands under dispute (Amount paid under protest Rs.7.150 millions)	95.780

FIXED ASSETS

• Tangible Assets

v Freehold Land

v Building

v Plant and Machinery

v Electrical Installation

v Furniture and Fixtures

v Office Equipments

v Vehicles

• Intangible Assets

v Computer Software

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH SEPTEMBER, 2012

(Rs. In millions)

Particulars		Quarter ended		Nine months ended
		30.09.2012	30.06.2012	30.09.2012
		Unaudited	Unaudited	Unaudited
1.	Income from operations
	a) Net sales/income from operations	3571.400	3613.500	1,0917.500
	(net of excise duty)
	b) Other operating income	-	-	-
	Total income from operations (net)	3571.400	3613.500	1,0917.500
2.	Expenses
	a) Cost of material consumed	1433.400	1436.100	4397.600
	b) Purchases of stock-in-trade	1949.700	1947.600	5851.500
	c) Changes in inventories of finished goods,	(30.900)	(11.400)	(34.500)
	work-in-progress and stock-in-trade
	d) Employee benefits expense	36.700	36.200	108.500
	e) Depreciation and amortisation expenses	51.800	51.100	153.100
	f) Other expenses	108.300	100.300	311.000
	Total expenses	3549.000	3559.900	1,0787.200
3.	Profit/(Loss) from operations before other	22.400	53.600	130.300
	income, finance costs and exceptional items (1-2)
4.	Other income	05.500	06.800	19.500
5.	Profit/(Loss) from ordinary activities before	27.900	60.400	149.800
	finance costs and exceptional items (3+4)
6.	Finance costs	193.300	182.100	552.700
7.	Profit/(Loss) from ordinary activities after	(165.400)	(121.700)	(402.900)
	finance costs but before exceptional items (5-6)
8.	Exceptional items	-	-	-
9.	Profit/(Loss) from ordinary activities	(165.400)	(121.700)	(402.900)
	before tax (7+8)
10.	Tax expense	(50.000)	(40.000)	(127.500)
11.	Net Profit/(Loss) from ordinary activities	(115.400)	(81.700)	(275.400)
	after tax (9-10)
12.	Extraordinary items (net of tax expenses)	-	-	-
13.	Net Profit/(Loss) for the period (11-12)	(115.400)	(81.700)	(275.400)
14.	Paid-up equity share capital (FV Rs.10/- per share)	7.50	7.50	7.50
15.	Reserves excluding Revaluation Reserves as per	-	-	-
	balance sheet of previous accounting year
16.i.	Earnings per share (before extraordinary items)
	(of Rs. 10/- each) (not annualised)
	a) Basic	(15.39)	(10.89)	(36.72)
	b) Diluted	(15.39)	(10.89)	(36.72)
16.ii. Earnings per share (after extraordinary items)
	(of Rs. 10/- each) (not annualised)
	a) Basic	(15.39)	(10.89)	(36.72)
	b) Diluted	(15.39)	(10.89)	(36.72)

PART II - Selected Informations for the Quarter Ended 30th September, 2012

Particulars		Quarter ended		Nine months ended
		30.09.2012	30.06.2012	30.09.2012
		Unaudited	Unaudited	Unaudited
A.	PARTICULARS OF SHAREHOLDING
1.	Public shareholding
	- Number of equity shares	3,820,895	3,820,895	3,820,895
	- Percentage of equity shareholding	50.95%	50.95%	50.95%
2.	Promoters and promoter group shareholding
	a) Pledge/Encumbered
	- Number of shares	-	-	-
	- Percentage of shares (as a % of the total	0.00%	0.00%	0.00%
	shareholding of promoter and promoter group)
	- Percentage of shares (as a % of the total share	0.00%	0.00%	0.00%
	capital of the Company)
	b) Non-encumbered
	- Number of shares	3,679,105	3,679,105	3,679,105
	- Percentage of shares (as a % of the total	100.00%	100.00%	100.00%
	shareholding of promoter and promoter group)
	- Percentage of shares (as a % of the total share	49.05%	49.05%	49.05%
	capital of the Company)

Particulars	Quarter ended 30.09.2012
B. INVESTOR COMPLAINTS
Pending at the beginning of the quarter	Nil
Received during the quarter	10
Disposed off during the quarter	9
Remaining unresolved at the end of the quarter	1

Notes:

The Statutory Auditors have carried out limited review of the above results and the same have been reviewed by the Audit Committee and taken on record by the Board of Directors at its meeting held on 9th November, 2012.

The Provision for Taxation includes Provision for Current Tax, Deferred Tax and net of MAT Credit Entitlement.

The Company has only one segment viz. "Consumer electronics and components/parts thereof" as per Accounting Standard on Segment Reporting (AS) -17 of ICAI.

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.54.43
UK Pound	1	Rs.83.20
Euro	1	Rs.71.91

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		36

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.