MIRA INFORM REPORT

Report No. :	352939
Report Date :	07.12.2015

IDENTIFICATION DETAILS

Name :	SALORA INTERNATIONAL LIMITED
Registered Office :	D – 13/4, Okhla Industrial Area Phase-ll, New Delhi 110020, Delhi
Tel. No.:	91-11-49207100/101
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	20.11.1968
Com. Reg. No.:	55-004962
Capital Investment / Paid-up Capital :	Rs. 88.145 Million
CIN No.: [Company Identification No.]	L74899DL1968PLC004962
IEC No.:	0592019616
TAN No.: [Tax Deduction & Collection Account No.]	DELS08465C
PAN No.: [Permanent Account No.]	AAACS3041G
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturing of LED TV, CTV and its components (Registered Activity)
No. of Employees :	256 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Status :	Satisfactory
Payment Behavior :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company incorporated in the year 1968 having satisfactory track. Turnover and profit of the company has declined during FY 2015. However, the company possesses an above average financial marked by healthy net worth base and decent liquidity positon of the company. Further, the rating also takes into consideration favorable gap between payables and trade receivables. Trade relations are reported as fair. Business is active. Payments terms are reported as usually correct and as per commitment. In view of long track record and acceptable financial base, 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.

ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities (BBB-)
Rating Explanation	Moderate degree of safety and carry moderate credit risk.
Date	January 09, 2015

Rating Agency Name	CARE
Rating	Short Term Bank Facilities (A3)
Rating Explanation	Moderate degree of safety and carry higher credit risk.
Date	January 09, 2015

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 31-03-2015.

INFORMATION DENIED

Management non co –operative (91-11-49207100/ 101)

LOCATIONS

Registered / Corporate Office :	D – 13/4, Okhla Industrial Area Phase-ll, New Delhi 110020, Delhi, India
Tel. No.:	91-11-49207100/101
Fax No.:	91-11-26388581
E-Mail :	nitin.agrahari@salora.com sect@salora.com
Website :	http://www.salora.com
Manufacturing Plants :	Plot No. B-31-34 and 50-53, Sector – 80, Noida, Uttar Pradesh, India
Wind Energy Division	Village Petle, Israde and Penhalipada, Taluka Sakri, District - Dhule, Maharashtra, India
Branch Office :	Located At Central Ware House Delhi Noida Gurgoan Punjab Parwanoo Chandigarh Jaipur Dehradun Jammu Kolkata Patna Ranchi Mumbai Goa Pune Nagpur Raipur Indore Ahmedabad Secundrabad Banglore Chennai Kerala

DIRECTORS

As on: 31.03.2015

Name :	Mr. Gopal Sitaram Jiwarajka
Designation :	Chairman and Managing Director
Address:	A - 15, Asola Homes, Amar Marg Chattar Pur, New Delhi-110030, Delhi, India
Date of Appointment:	28.08.1987
DIN:	00024325
Name :	Mr. Gautam Khaitan
Designation :	Director
Address:	N-12, Panchsheel Park, New Delhi-110017, Delhi, India
Date of Appointment:	28.06.2001
DIN:	00021117
Name :	Mr. P. N. Mehta
Designation :	Director
Address:	90, Anand Lok, Khelgaon Marg, New Delhi-110049, Delhi, India
Date of Birth:	22.06.1936
Qualification:	C.A.
Date of Appointment:	19.06.2002
DIN:	00277303
Name :	Mr. Sanjeev Kaul Duggal
Designation :	Director
Address:	M-45, Greater Kailash, Part - II, New Delhi-110048, Delhi, India
Date of Appointment:	28.10.2005
DIN:	00004977
Name :	Mr. Patanjali Govind Keswani
Designation :	Director
Address:	B - 6 /17, Safdarjung Enclave, New Delhi-110029, Delhi, India
Date of Appointment:	28.10.2005
DIN:	00002974
Name :	Mr. Tarun Jiwarajka
Designation :	Whole Time Director
Address:	A-15 Asola Homes, Amar Marg Near Chattarpur, New Delhi-110030, Delhi, India
Date of Birth:	31.03.1984
Qualification:	B.Sc. in Business
Date of Appointment:	10.11.2011
DIN:	00386240
Name :	Mrs. Sushmita Shekhar
Designation :	Director
Address:	68, Greenwood Government Office, Rswelfare Society, phase I plot No, 10pkt P-2sectoromega-1greaternoida,Gautambudhnagar, Noida-201306, Uttar Pradesh, India
Date of Birth:	13.05.1964
Qualification:	Master’s Degree in English
Date of Appointment:	30.03.2015
DIN:	02284266

KEY EXECUTIVES

Name :	Mr. Ashok Kumar Kucheria
Designation :	Chief Finance Officer
Address:	D-291a, 2nd Floor, Ramprastha Colony, Ghaziabad-201001, Uttar Pradesh, India
Date of Appointment:	02.07.2015
PAN:	AAEPK6041R
Name :	Mr. Amit Kumar Goel
Designation :	Chief Finance Officer
Name :	Mr. Nitin Kumar Agrahari
Designation :	Company Secretary
Address:	44, Maya Cottage, Shakarpur Khas, Laxminagar, New Delhi-110092, Delhi, India
Date of Appointment:	07.08.2014
PAN:	AXIPA3334J

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON: 30.09.2015

Category of Shareholder	Total No. of Shares	As a %
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	5317287	60.37
Bodies Corporate	558929	6.35
Sub Total	5876216	66.72
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	5876216	66.72
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	0	0.00
Financial Institutions / Banks	0	0.00
Foreign Institutional Investors	0	0.00
Sub Total	0	0.01
(2) Non-Institutions
Bodies Corporate	1125181	12.83
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1006067	13.24
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	264519	3.00
Any Others (Specify)	369130	4.19
Overseas Corporate Bodies	175	0.00
Hindu Undivided Families	52026	0.59
Clearing Members	1211	0.01
Non-Resident Indians	313418	3.56
Others	2300	0.03
Sub Total	2764897	33.27
Total Public shareholding (B)	2764897	33.28
Total (A)+(B)	8641113	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1)	0	0.00
(2)	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	8641113	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of LED TV, CTV and its components (Registered Activity)

Products :

Product Description	Item Code No.
Colour TV	852812 00 10
FBT/DY	850440 09
Mobile Phone	852520 17

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

256 (Approximately)

Bankers :

• State Bank of India
• Canara Bank
• HDFC Bank Limited
• The Bank of Tokyo Mitsubishi Limited

Bank Name	Not Divulged
Branch	Not Divulged
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

Secured Loan	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
Long-term Borrowings
Vehicle Loans from Banks and Others	11.346	11.450
Less : Current Maturity	(2.957)	(2.339)
Short-term borrowings
Working Capital Loans	379.542	391.543
Total	387.931	400.654
Note: Details of security for secured loans: Vehicle Loans are secured against hypothecation of cars. Terms of repayment of term loans and others I) Vehicle Loans from Banks and Others on monthly instalment basis. ii) Unsecured Loans are repayable on demand. There is no continuing default as on the balance sheet date in respect of loans and interest. Additional Information: 1. Working Capital Loans are secured by hypothecation of inventories & receivables and first pari-passu charge on immovable properties of Noida units as collateral security.

Auditors :
Name :	K. Prasan and Company Chartered Accountant
Address :	G-1, Ground Floor, South Extension – II, New Delhi – 49, India
Tel. No.:	91-11-41649623/ 41649624/ 41649625/ 41649626
E-Mail :	agarwalkm@rediffmail.com fca.rsgupta@gmail.com
Memberships :	--
Collaborators :	--
Subsidiary :	Salora Capital Limited (till February 2014) Salora Components Limited
Associates and Joint Ventures:	Salora Retail Ventures Limited (till 30.03.2014)
Other related parties in which key managerial Personnel are able to exercise significant influence :	Associated Electronics Research Foundation Encompass Software and Systems Private Limited (Till 30.3.2015) Essjay Ericsson Private Limited Manori Properties Private Limited Devi Electronics Private Limited Terminal Power Private Limited (Till 30.03.2015)

CAPITAL STRUCTURE

AS ON 31.03.2015

Authorised Capital:

No. of Shares	Type	Value	Amount
20,000,000	Equity Shares	Rs. 10/- each	Rs. 200.000 Million

Issued, Subscribed

No. of Shares	Type	Value	Amount
8,820,000	Equity Shares	Rs. 10/- each	Rs. 88.200 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
8,807,300	Equity Shares	Rs. 10/- each	Rs. 88.073 Million
12,700	Add: Share Capital forfeited Equity Shares @ 5.65/- each		Rs. 0.072 million
	Total		Rs. 88.145 Million

b) Reconciliation of the number of shares outstanding at the beginning and the end of the reporting period:

Number of Shares at the beginning and close of the year are same.

The rights, preferences and restrictions including restrictions on the distribution of dividends and the repayment of capital:

c) Shares in the company held by each shareholder holding more than 5 percent shares specifying the number of shares held:

Name of Shareholders	31.03.2015
	No. of Shares held	% of Holding
Gopal Sitaram Jiwarajka	2029117	23.04
Gopal Sitaram Jiwarajka HUF	1498988	17.02
Neetu Jiwarajka	731410	8.30
Manori Properties Private Limited	558929	6.35

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	88.145	88.145	88.145
(b) Reserves & Surplus	1048.804	1053.771	1038.571
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	1136.949	1141.916	1126.716
(3) Non-Current Liabilities
(a) long-term borrowings	56.389	48.111	86.924
(b) Deferred tax liabilities (Net)	(22.169)	(17.990)	(6.954)
(c) Other long term liabilities	21.589	21.064	19.560
(d) long-term provisions	1.772	1.891	1.711
Total Non-current Liabilities (3)	57.581	53.076	101.241
(4) Current Liabilities
(a) Short term borrowings	379.542	391.543	326.786
(b) Trade payables	145.294	213.571	372.209
(c) Other current liabilities	59.478	29.344	65.229
(d) Short-term provisions	8.042	8.942	9.256
Total Current Liabilities (4)	592.356	643.400	773.480
TOTAL	1786.886	1838.392	2001.437
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	286.860	325.062	345.676
(ii) Intangible Assets	2.807	3.893	4.909
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	34.607	35.241	77.681
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	84.901	84.688	97.326
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	409.175	448.884	525.592
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	387.484	386.723	379.806
(c) Trade receivables	719.357	725.891	767.375
(d) Cash and cash equivalents	21.391	24.652	16.780
(e) Short-term loans and advances	238.547	235.544	293.094
(f) Other current assets	10.932	16.698	18.790
Total Current Assets	1377.711	1389.508	1475.845
TOTAL	1786.886	1838.392	2001.437

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Income	2950.983	3954.140	3677.078
		Other Income	7.081	46.122	18.950
		TOTAL (A)	2958.064	4000.262	3696.028
Less	EXPENSES
		Cost of Materials Consumed	221.404	213.241	179.952
		Purchases of Stock-in-Trade	2400.390	3440.402	3073.031
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(15.241)	(7.624)	60.480
		Employees benefits expense	89.672	88.886	104.954
		Other expenses	168.878	152.541	152.814
		TOTAL (B)	2865.103	3887.446	3571.231
	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		92.961	112.816	124.797
Less	FINANCIAL EXPENSES (D)		56.412	67.901	78.986
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		36.549	44.915	45.811
Less	DEPRECIATION/ AMORTISATION (F)		32.610	35.226	37.214
	PROFIT / (LOSS)BEFORE TAX (E-F) (G)		3.939	9.689	8.597
Less	TAX (H)		0.386	(5.511)	(16.278)
	PROFIT / (LOSS)AFTER TAX (G-H) (I)		3.553	15.200	24.875
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		40.075	24.875	0.000
	BALANCE CARRIED TO THE B/S		43.628	40.075	24.875
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	229.852	1405.643	1374.021
		Service Charges including Service Tax	4.171	3.639	16.057
		High Sea Export on FOB basis	0.000	70.993	374.560
	TOTAL EARNINGS		234.023	1480.275	1764.638
	IMPORTS
		Raw Materials	121.857	79.902	49.747
		Trading Goods- Direct Purchase	122.279	163.558	63.231
		Trading Goods- High Sea Purchase	63.485	110.684	381.381
	TOTAL IMPORTS		307.621	354.144	494.359
	Earnings Per Share (Rs.)		0.40	1.73	2.82

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	2.957	2.339	0.731
Cash generated from operations	44.743	(10.361)	157.218
Net Cash flows from operating activities	47.381	(11.287)	156.588

QUARTERLY RESULTS

PARTICULARS	1 Quarter	2 Quarter
Unaudited	30.06.2015	30.09.2015
Revenue	672.030	750.220
Other Income	0.580	0.880
Total Income	672.610	751.100
Expenditure	(650.130)	(728.990)
Interest	(15.620)	(16.480)
PBDT	6.850	5.620
Depreciation	(6.300)	(4.820)
PBT	0.550	0.800
Tax	0.150	(1.680)
Net Profit	0.700	(0.880)

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	0.12	0.38	0.68
Operating Profit Margin (PBIDT/Sales)	(%)	3.15	2.85	3.39
Return on Total Assets (PBT/Total Assets}	(%)	0.22	0.54	0.45
Return on Investment (ROI) (PBT/Networth)		0.00	0.01	0.01
Debt Equity Ratio (Total Debt /Networth)		0.39	0.39	0.37
Current Ratio (Current Asset/Current Liability)		2.33	2.16	1.91

STOCK PRICES

Face Value	Rs.10.00/-
Market Value	Rs.42.00/-

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	88.145	88.145	88.145
Reserves & Surplus	1038.571	1053.771	1048.804
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	1126.716	1141.916	1136.949
long-term borrowings	86.924	48.111	56.389
Short term borrowings	326.786	391.543	379.542
Current maturities of long-term debts	0.731	2.339	2.957
Total borrowings	414.441	441.993	438.888
Debt/Equity ratio	0.368	0.387	0.386

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	3677.078	3954.140	2950.983
		7.535	(25.370)

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	3677.078	3954.140	2950.983
Profit	24.875	15.200	3.553
	0.68%	0.38%	0.12%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	No
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	---
33	Market information	---
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

OPERATIONS AND FUTURE PROSPECTS:

During the period, the Company has achieved net sales of Rs. 2950.900 million in the Financial Year 2014-15 as compared to Rs. 3954.100 million in the last Financial Year. Operating profit for the year was Rs.3.553 million against Rs.1.520 million during the preceding year.

For growth and stability of business, the Company has been focusing mainly on Salora Brand products i.e. LED TVs, SMART TVs, Home Theaters, Tablet Computers, Smart Phones and Feature Phones. Technical reviews of these products and market response is very fine.

The Company has plans to start manufacturing and assembling facility for mobile phones of their valued Brand “SALORA”. In order to strengthen, lifestyle division of the Company, Company plans to extend product line in this segment to meet the requirements of brand conscious consumers.

Company’s alignment with e-commerce players i.e. Amazon, Flipkart and Snap deal for sales and marketing of its products, consumer’s response is very well.

MANAGEMENT DISCUSSION AND ANALYSIS:

INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Company is in the business of manufacturing and marketing of consumer electronic products including LED TVs, CRT TVs, Home Theaters and critical TV components, Tablets, Smart phones, Feature Phones, House Hold & Lifestyle Products and distribution of Telecom & IT products. Company is also engaged in the business of after sales service of Salora products and wide range of leading national and international brands of telecom products.

During the financial year 2014-15, Indian economy went too many changes in every aspect, be it financial, economic or political. All these changes have majorly effected the corporate environment in India. Apropos to the “Make in India” movement, the Government, reduced the customs duty on some items which go into the manufacture of various consumer electronic goods including TVs as well as reduction in tax on royalty will encourage indigenous manufacturing and technology proliferation. The Government has specifically targeted LED TVs, one of the largest contributing products of company’s revenue, reducing customs duty on organic or OLEDs from 10 per cent to zero. By these reductions, assembling costs will reduce, while manufacturing stands to gain from this, consumers will also be benefitted because they could pass these savings to them.

OPPORTUNITIES

Global sentiment towards the Indian market has seen substantial improvement following the reforms initiated in Policy and Regulatory norms by the Indian Government. Recent Government measures intended structural reforms in the Indian economy are in the right direction to make India as a new manufacturing hub to the World. In order to reduce the import bill, the Government planned to support the manufacturing capabilities in India and with this preference to Indian electronic products, manufacturing companies like Salora will get benefits in terms of profitability and growth as well. For effective leveraging to achieve desired growth, the Company has been evaluating the opportunities into manufacturing of Mobiles and Tablet Computers and their components. Another horizon of opportunity seems to come shortly in smart phone segment with the debut of fourth generation of mobile telecommunications technology, succeeding to 3G in India, the Company will launch 4G Phones too in time with the launch of 4G services in India.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE SALORA – TECHNOLOGY FOR HAPPINESS

The growth in telecom products demand is an encouraging factor to the market development in Consumer Electronics Sector and as per statistical data available, India is adding 2 million mobile phone users every month. With the debut of smart communication devices, telecom segment has started penetrating IT segment within the Sector. The demand for smart communication devices has raised sharply, lowering the demand for Feature Phones and Tablets. The company is also striving to be a part of this growth story with continuous introduction of new models to serve the needs of Consumer Electronic Sector in following segments:

Consumer Electronics Product:

Salora is a trusted brand in the television manufacturing industry from last few decades. The Company constantly strives to provide its best and focused efforts to maintain its hard-earned goodwill by providing consumer friendly products at affordable price. But over the past few years the Indian Television industry has made rapid changes. Moreover, with changing global trends and advanced technologies such as smart HD TVs and energy saving, eco-friendly compact size models have shifted the consumer preference to international Brands. The digitization of cable TV also led to a shortening of the replacement cycle of television sets, as CRT TV owners started upgrading to digital TVs. Due to all these changes the market is experiencing a slow and steady growth. During the year 2014-15, performance of consumer electronics business was satisfactory keeping in view of the competition faced by the company from its multi-national peers.

E-Commerce:

In the modern era, technology advancement has extended the reach of market up to the home place of prospective consumers through e-commerce business model. This gives them freedom to choose from a wide range of options just a click away and without sweating much effort for selecting desired item. As their motto, is consumer preference and satisfaction, they adapt ourselves according to consumers’ need and strive to provide them a platform to shop their requirements through E-commerce. With the experience gained while partnering with ecommerce companies like Amazon, Flipkart and Snap deal, the Company has built up capability and expertise in landing up e-commerce business and this will be another core specialized area for the Company’s business operation. The Company is also aligned partnership with some other e-commerce market places like Naaptol, Shop Clues, Times Internet Limited, embay and HomeShop18.

Telecom Product:

During the year, the Company has established a premium range of smart phones under the brand name “arya” for selling exclusively through their online business partner “Amazon”. In the coming year, Company is also planning to sell these products through their well established distribution channel in India and to export in different countries. To expand the product portfolio in the telecom business, the company has introduced under the flagship of their very own brand “Salora”, some technologically superior and budget friendly mobile phone models such as enjoy E -E4, enjoy G –E5, KP-11, KC-11, KC-12 and KC-18 in the smart and feature phone segment. The Company is also planning to establish a manufacturing line for mobile phones in the coming months. Further, performance of this unit was satisfactory during the F.Y. 2014-15 and seems very prospective for the coming year.

OUTLOOK:

The consumer electronic industry has gained tremendous recognition as the key driver for all round development and growth. Changes in socio-economic conditions of the Country and regulatory support to the manufacturers through various policy decisions led by the new Government, seems favorable for the growth of consumer electronic and durable industry. Following the unprecedented growth in the Mobile Market, the Company expects a profitable avenue in the manufacturing and trading of Mobile communication devices with its strength in marketing and service network. Strategic Alliances with established players in different parts of the globe for technological improvement and cost reduction is in right direction and pace. The Company is cautiously stepping into every direction within the ambit of its scope to strengthen its position in the Market. Their responsibility is not limited to providing best featured products with at an economical price range, but also to adopt a sincere practice to provide a loyal after sales service to maintain a cordial company customer relationship. They retain their old customer along with creating new opportunities. They constantly endeavor to create Mass Products with Class Elements.

FINANCIAL AND OPERATIONAL PERFORMANCE

The detailed financial performance for the fiscal year 2014-15 is dealt with in the Directors’ Report. During the year, the performance of the company was satisfactory in spite of the various challenges and uncertainties across various segments of industry such as financial crisis, volatile prices, sharp movement in currencies and liquidity crisis. During the Financial Year 2014-15, the turnover of the Company stood as Rs.2950.900 million as against Rs. 3956.300 million in the previous financial year. The Company recorded a meager net profit of Rs. 3.939 Million. The company has taken adequate measures to improve its performance in the coming year and the Board is confident for better results in the financial year 2015-16.

UNSECURED LOAN

PARTICULARS	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
Long-term Borrowings
Loan from related parties	20.000	0.000
Loan from Others	28.000	39.000
Total	48.000	39.000

INDEX OF CAHREGS:

S. NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10586236	05/08/2015	750,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, JAWAHAR VYAPAR BHAWAN, 14TH FLOOR, 1, TOLSTOY MARG, NEW DELHI - 110001, DELHI, INDIA	C61815809
2	10568989	30/04/2015	406,500,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, JAWAHAR VYAPAR BHAWAN, 14TH FLOOR, 1, TOLSTOY MARG, NEW DELHI - 110001, DELHI, INDIA	C53441978
3	10509254	02/07/2014	42,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, JAWAHAR VYAPAR BHAWAN, 14TH FLOOR, 1, TOLSTOY MARG, NEW DELHI - 110001, DELHI, INDIA	C11469384
4	10130118	31/10/2008	850,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, JAWAHAR VYAPAR BHAWAN, 14TH FLOOR, 1, TOLSTOY MARG, NEW DELHI - 110001, DELHI, INDIA	A50970961

* Date of charge modification

FIXED ASSETS:

• Lease Hold Land
• Building
• Furniture and Fixtures
• Plant and Machinery
• Dies and Moulds
• Motor Vehicles
• Office Equipment
• Trade Mark

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30.06.2015

[RS. IN MILLION]

PARTICULARS	3 Months Ended
	30.06.2015 [Unaudited]
(a) Net sates/income from operations (Net of excise duty)	672.004
(b) Other Operating Income	0.023
Total income from operations (net)	672.027
Expenses
(a) Cost of materials consumed	44.271
(b) Purchases of stock-in trade	586.682
(c) Changes in inventories of finished goods. work-in-progress and stock in trade	(49.141)
(d) Employee benefits expense	22.263
(e) Depreciation and Amortization Expenses	6.296
(f) Other Expenses	46.062
Total expenses	656.433
Profit/ (Loss) from operations before other Income, finance costs and exceptional Items (1-2)	15.594
Other Income	0.575
Profit/ (Loss) from operations before other income, finance costs and exceptional items (3+4)	16.169
Finance Costs	15.622
Profit/ (Loss) from ordinary activities after finance cost but before exceptional items (5-6)	0.547
Exceptional items	0.000
Profit/ (Loss) from ordinary activities before tax (7+8)	0.547
Tax expenses	(0.154)
Net Profit / (Loss) from ordinary activities after tax (9-10)	0.701
Extraordinary item (net of tax expense)	0.000
Net Profit / (Loss) for the period (11-12)	0.701
Share of profit' (loss) of associates
Minority Interest
Net Profit/ (Loss) after taxes, minority interest and share of profit/(loss) of associates (13+14+15)
Paid up equity share capital (Face Value of Rs 10/-each)	88.073
Reserve excluding Revaluation Reserve as per Balance Sheet of previous accounting year	0
Earnings per share (before extraordinary items) of Rs.10/- each (not annualized):	0
(a) Basic	0.08
(b) Diluted	0.08
PARTICULARS OF SHAREHOLDING
A. Public Shareholding
- Number of shares	2931034
- Percentage of shareholding	33.28
Promoters and Promoter group shareholding
a) Pledged / Encumbered
- Number of shares	0
- Percentage of shares (as a % of the total shareholding of Promoter & Promoter group)	0
- Percentage of shares (as a % of the total Share Capital of the Company)
b) Non Encumbered
- Number of shares	5876266
- Percentage of shares (as a % of the total shareholding of Promoter & Promoter group)	100.00
- Percentage of shares (as a % of the total Share Capital of the Company)	66.72

	PARTICULARS	3 Months Ended 30.06.2015
B	Investor complaints (Nos.)
	Pending at the beginning of the quarter	1
	Received during the Quarter	2
	Disposed of during the quarter	2
	Remaining unresolved at the end of the quarter	1

SEGMENTWISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. In Million)

Particulars	3 Months Ended
	30.06.2015 [Unaudited]
1. Segment Revenue
Infocom Division	610.620
Consumer Electronics Division	50.149
Wind Energy	11.234
Net Sales	672.004
2. Segment Result
Profit before tax and interest from each segment
Infocom Division	20.640
Consumer Electronics Division	0.255
Wind Energy	6.488
Total	27.379
Less : Interest	14.309
Other un-allocate expenditure net of un-allocable income	12.524
Profit from ordinary activities before tax	0.547
3. Capital Employed (Segment Assets-Segment Liabilities)
Infocom Division	897.815
Consumer Electronics Division	358.905
Wind Energy	186.264
Un-allocable Capital Employed	(305.334)
Total	1137.651

Note:

1. The above results have been reviewed by the Audit Committee on November 05, 2015 and taken on record by the Board of Directors at its meeting held on November 05, 2015.

2. The figures of the respective corresponding previous period have been re-grouped and or re-arranged wherever necessary.

3. The Limited Review on the above Quarterly Results has been carried out by the Statutory Auditors of the Company.

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 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.66.84
UK Pound	1	Rs.101.04
Euro	1	Rs.73.05

INFORMATION DETAILS

Information Gathered by :	SPY
Analysis Done by :	DIV
Report Prepared by :	MTN

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
--PROFITABILITY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--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	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.