MIRA INFORM REPORT

Report Date :

24.06.2013

IDENTIFICATION DETAILS

Name :	FRONTLINE ELECTRONICS LIMITED
Registered Office :	EL 35, Electronic Zone, MIDC Bhosari, Pune - 411026, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	04.01.1993
Com. Reg. No.:	11-070281
Capital Investment / Paid-up Capital :	Rs.50.000 Millions
CIN No.: [Company Identification No.]	U52334PN1993PLC070281
PAN No.: [Permanent Account No.]	AAACF2689P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Electronic Components used in Automobile Industry.
No. of Employees :	Above 100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 710000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having a good track record. There appear slight dip in profitability during 2012. However, financial strength seems to be strong. Liquidity position is good. The company operates on its own fund. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered for normal business dealings at usual trade terms and condition.

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 DENIED BY

Name :	Mr. Anil
Designation :	Accounts Department
Contact No.:	91-9850887989
Date :	24.06.2013

LOCATIONS

Registered Office :	EL 35, Electronic Zone, MIDC Bhosari, Pune - 411026, Maharashtra, India
Tel. No.:	91-20-64102363/ 27125894/ 95
Fax No.:	Not Available
E-Mail :	vnt@vsnl.net accounts@frontlineelectronics.com
Website :	http://www.frontline-electronics.com

DIRECTORS

As on: 29.09.2012

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
PAN No.:	ACQPS5322K
Name :	Ms. Lata 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
PAN No.:	ATHPP9828M
Name :	Ms. Neelam Sanjay Jandial
Designation :	Director
Address :	Bungalow No.30, Khun Road, Pune – 411001, Maharashtra, India
Date of Birth/Age :	23.11.1969
Date of Appointment :	30.09.2002
DIN No.:	02297571
PAN No.:	AELPJ7957E

KEY EXECUTIVES

Name :	Mr. Anil
Designation :	Accounts Department

MAJOR SHAREHOLDERS

As on: 29.09.2012

Names of Shareholders	No. of Shares
Meghnad Sudhirchandra Shah	3532950
Neelam Sanjay Jandial	1026050
Purvi J Patiwana	65925
Comfortzone Electronic Innovations Limited, India	375000
Lata Parwanishah	25
Shubhangi N. Tapasvi	25
Pushpa Shevendas Parwani	25
Total	5000000

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Bodies corporate	40.00
Directors or relatives of Directors	60.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Electronic Components used in Automobile Industry.

Products :

Products	ITC Code
Printed circuit Boards	84733030

Imports :

Products :

Raw Material

Countries :

· Australia

· Japan

GENERAL INFORMATION

Customers :	Tata Motors
No. of Employees :	Above 100 (Approximately)
Bankers :	Not Available

Banking Relations :
Auditors :
Name :	Triveni Tapasvi and Associates Chartered Accountants
Address :	Flat No 4, Apartment No.301, Swojas House Apartment 1159, Sadashiv Peth, Pune, Maharashtra, India
PAN No.:	AANPT9629B

CAPITAL STRUCTURE

As on: 31.03.2012

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	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	50.000	50.000
(b) Reserves & Surplus	129.922	115.535
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	179.922	165.535
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.652	0.805
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	0.652	0.805
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	16.346	8.023
(c) Other current liabilities	0.148	0.108
(d) Short-term provisions	9.888	6.989
Total Current Liabilities (4)	26.382	15.120
TOTAL	206.956	181.460
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	62.400	62.610
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	3.304	0.000
(e) Other Non-current assets	0.120	0.144
Total Non-Current Assets	65.824	62.754
(2) Current assets
(a) Current investments	35.021	32.753
(b) Inventories	27.856	17.440
(c) Trade receivables	34.750	31.273
(d) Cash and cash equivalents	29.189	24.971
(e) Short-term loans and advances	14.316	12.269
(f) Other current assets	0.000	0.000
Total Current Assets	141.132	118.706
TOTAL	206.956	181.460

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		50.000
2] Share Application Money		0.000
3] Reserves & Surplus		99.287
4] (Accumulated Losses)		0.000
NETWORTH		149.287
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.000
TOTAL BORROWING		0.000
DEFERRED TAX LIABILITIES		0.000
TOTAL		149.287
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		54.894
Capital work-in-progress		0.000
INVESTMENT		31.107
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	7.284
	Sundry Debtors	26.637
	Cash & Bank Balances	29.811
	Other Current Assets	0.000
	Loans & Advances	12.930
Total Current Assets		76.662
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7.753
	Other Current Liabilities	2.149
	Provisions	3.642
Total Current Liabilities		13.544
Net Current Assets		63.118
MISCELLANEOUS EXPENSES		0.168
TOTAL		149.287

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	198.842	141.116	152.400
		Other Income	3.991	3.136	1.407
		TOTAL (A)	202.833	144.252	153.807
Less	EXPENSES
		Cost of materials consumed	145.419	91.959	128.418
		Employee benefit expense	8.024	5.547
		Other expenses	18.240	16.454
		Prior period items before tax	0.001	0.000
		TOTAL (B)	171.684	113.960	128.418
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		31.149	30.292	25.389
Less	FINANCIAL EXPENSES (D)		0.087	0.238	0.024
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		31.062	30.054	25.365
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.970	5.679	4.896
	PROFIT BEFORE TAX (E-F) (G)		24.092	24.375	20.469
Less	TAX (H)		7.267	5.419	0.000
	PROFIT AFTER TAX (G-H) (I)		16.825	18.956	20.469
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	NA	0.968	2.015
	TOTAL EARNINGS		NA	0.968	2.015
	IMPORTS
		Raw Materials	55.648	46.626	33.483
		Capital Goods	3.921	15.958	0.153
	TOTAL IMPORTS		59.569	62.584	33.636
	Earnings Per Share (Rs.)		3.37	3.79	4.09

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	8.30	13.14	13.31
Net Profit Margin (PBT/Sales)	(%)	12.12	17.27	13.43
Return on Total Assets (PBT/Total Assets}	(%)	11.64	13.43	15.56
Return on Investment (ROI) (PBT/Networth)		0.13	0.15	0.14
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		5.35	7.85	5.66

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

(Rs. in Millions)

PARTICULARS	31.03.2012	31.03.2011	31.03.2010
Creditors due to others	16.346	8.023	7.753

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	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	Yes
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	No
24]	Banking facility details	No
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

FIXED ASSETS:

· Buildings

· Plant and equipment

· Furniture and fixtures

· Vehicles

· Office equipment

· Computer equipments

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.59.73
UK Pound	1	Rs.91.82
Euro	1	Rs.78.23

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		51

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

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.