MIRA INFORM REPORT

Report Date :

5^TH June, 2006

IDENTIFICATION DETAILS

Name :	HI TECH TELECOM LIMITED
Registered Office :	155, Ground Floor, Ranga Chambers, R. V. Road, V. V. Puram, Bangalore - 560 002, Karnataka
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	10.01.1994
CIN No.:	U85110KA1994PTC015108
Com. Reg. No.:	08-15108
TAN No.: [Tax Deduction & Collection Account No.]	BLRH00544F
Legal Form :	A closely held public limited liability company
Line of Business :	Traders and Marketers of Electronic Components such as Semiconductor Products, Optoelectronics, Analog Devices, etc.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well – established company having satisfactory records. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. It can be considered normal for business dealings at usual trade terms and conditions

LOCATIONS

Registered Office :	155, Ground Floor, Ranga Chambers, R. V. Road, V. V. Puram, Bangalore - 560 002, Karnataka
Tel. No.:	91-80-26522999 /26673404 / 3406/26622929
Fax No.:	91-80-26506431
E-Mail :	hitech@hitechtel.com
Website :	http://www.hitechtel.com
Area :	2000 Sq. ft
Location :	Rented
Branches :	Located At: 49, Matti Naik Plaza, Hanuman Tekdi, Abids, Hyderabad-500001, Andhra Pradesh No. 1048, 10^th Street, Poombuhar Nagar, Kolathur, Chennai-600099, Tamilnadu

DIRECTORS

Name :	Ms. C. Motilal
Designation :	Managing Director
Address :	14, Visal Nivas, M M Road, V V Puram, Bangalore – 560004
Date of Birth/Age :	06.04.1959
Date of Appointment :	10.01.1994
Name :	Mr. Mahaveer Jain
Designation :	Executive Director
Address :	301, 12^TH Cross, 9^th Main Main, 2^nd Block, Jayanagar, Bangalore - 560004
Date of Birth/Age :	09.09.1975
Date of Appointment :	31^st March, 2000
Name :	Mr. Bharat Jain
Designation :	Director
Address :	2160, Abhisek Market, Ring Road, Surat, Gujarat
Date of Appointment :	24^th March, 2000
Name :	Mr. Jinani Vishal
Designation :	Director
Address :	14, Visal Nivas, M M Road, V V Puram, Bangalore – 560004
Date of Birth/Age :	09.04.1982
Date of Appointment :	01.09.2004
Name :	Mr. Jinani Monika
Designation :	Director
Address :	14, Visal Nivas, M M Road, V V Puram, Bangalore – 560004
Date of Birth/Age :	26.09.1983
Date of Appointment :	01.09.2004
Name :	Mr. Ranmal Bharat Jain
Designation :	Director
Address :	301, 12^TH Cross, 9^th Main Main, 2^nd Block, Jayanagar, Bangalore - 560004
Date of Birth/Age :	06.02.1976
Date of Appointment :	14.07.2000

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Mr. C. Motilal	257500	36.81
Mrs. Susheela Devi	80000	11.44
Mrs. Vijaya Devi	1000	0.14
Mr. Prakash Chand	1000	0.14
Mr. C Motilal (HUF)	190000	27.16
Mr. Vishal Jinani	115000	16.44
Ms. Monica Jinani	35000	5.00
M/s. Jinanica Telecom Private Limited	20000	2.86
Total	699500	100.00

BUSINESS DETAILS

Line of Business :

Traders and Marketers of Electronic Components such as Semiconductor Products, Optoelectronics, Analog Devices, etc.

Products :

v Integrated Circuits

v Semi-Conductors-Discrete

v Passive Components

v Electro-Mechanical Components

Agencies Held :

Ampheno	3M / Scotchflex	Agilent Technologies
Augat	AMD	AMP
Bourns	Analog Devices	Atmel
Cypress Semiconductor	AVX	BI Technologies
Fairchild Semiconductor	California Micro Devices	Catalyst Semiconductor Inc.
Harris	Dallas Maxim Semiconductor	EXAR
International IOR Rectifier	Fujitsu	General Semiconductor
Littlefuse	Hotlek	IIT Semiconductor
Microchip	IXYS	Kemet
Mosel Vitelic	Matsushita	Micrel
NC	Microsemi	Molex
On Semiconductor	Motorola	Murata Electronics, North America, Inc
Raytheon	NEC	Nichicon
Sanken	Philips India Limited	QT Optoelectronics
Sipex	Robinson Nugent	Samsung Semiconductor Inc. Texas Instruments
Temic	SIDT	Siemens
United Chemi-Con	Spectrol	Sprague
Vishay	Toshiba	UMC
Altera	Unitrode Products	U-tron Technologies
Winbond	Zilog	Intel
National Electronic Limited, Hongkong

GENERAL INFORMATION

No. of Employees :	15
Bankers :	v State Bank of Saurashtra, Banglaore, Karnataka v The Lakshmi Vilas Bank Limited, Bangalore, Karnataka v Vysya Bank, Visweshrapuram Branch, Bangalore v State Bank of India, Overseas Branch, M G Road, Bangalore – 560001
Facilities :	Secured Loan Bank Overdraft – Rs. 7.876 Millions Secured loan from Bank – Rs. 0.044 Millions Total – Rs. 7.921 Millions

Banking Relations :	Unknown
Auditors :	Devendra Mehta & Associates Chartered Accountants
Address:	Shanti Complex, 894/895, Nagarthpet, Bangalore – 560002
Associates/Subsidiaries :	National Electronic Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.100 each	Rs. 10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
699500	Equity Shares	Rs.100 each	Rs. 6.995 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		6.995	6.995
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		16.388	9.523
4] (Accumulated Losses)		0.000	0.000
NETWORTH		23.383	16.518
LOAN FUNDS
1] Secured Loans		7.921	10.997
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		7.921	10.997
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		31.304	27.515
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.372	2.829
Capital work-in-progress		0.000	0.000
INVESTMENT		4.643	4.643
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1.102	1.154
	Sundry Debtors	41.536	42.390
	Cash & Bank Balances	0.961	0.465
	Other Current Assets	0.000	0.000
	Loans & Advances	2.389	4.119
Total Current Assets		45.988	48.128
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities & Provisions	21.705	28.093
Total Current Liabilities		21.705	28.093
Net Current Assets		24.283	20.035
MISCELLANEOUS EXPENSES		0.006	0.008
TOTAL		31.304	27.515

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004
Sales Turnover [including other income]	69.019	87.338
Profit/(Loss) Before Tax	7.722	6.760
Provision for Taxation	0.066	0.299
Profit/(Loss) After Tax	7.656	6.461
Export Value	39.906	42.680
Import Value	30.062	63.905
Expenditure	61.297	80.578

KEY RATIOS

PARTICULARS		31.03.2005	31.03.2004
PAT / Total Income	(%)	11.09	7.39
Net Profit Margin (PBT/Sales)	(%)	11.18	7.74
Return on Total Assets (PBT/Total Assets}	(%)	15.96	13.26
Return on Investment (ROI) (PBT/Networth)		0.33	0.40
Debt Equity Ratio (Total Liability/Networth)		1.26	2.36
Current Ratio (Current Asset/Current Liability)		2.11	1.71

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Subject was incorporated on 10^th January, 1994 at Bangalore in Karnataka as a private limited liability company having Company Registration Number 15108.

It was converted into a deemed public limited liability company with effect from 12^th June, 2000.

BUSINESS

It is one of the competitive players in the world market of sourcing and trading of electronic components.

Subject has developed to become an active player in the Global Electronic Component Market, providing total solutions to electronic industries

It is the principal representative of National Electronic Limited, Hong Kong. They are one of the leading stockists / dealers of electronic components having a global network with a huge inventory.

Subject has business alliances in Hong Kong, Singapore and USA to facilitate Global Delivery Models, to provide high quality, rapid time to market solutions at affordable prices.

Dividend

The director are pleased to recommend a dividend of 10% on the paid up equity share capital for the financial year ended 31.03.2005 to the share holders registered as on the date of Annul General Meeting. The aggregate amount of Rs. 0.790 on this account includes corporate dividend distribution tax of Rs. 0.091. This leaves the company with retained earnings of Rs. 11.888 of which Rs. 3.500 being transferred to the General Reserve leaving a surplus of Rs. 8.388 in the profit and loss account which is carried the balance sheet.

The company is in trade terms with :

v BPL Engineering Limited

v GME India Private Limited

v Jinanica

v Ronbel International

v Defence Organisations

v Major IT Companies

It has covered its industry in:

v Telecom

v Power

v Industrial

v Commercial / Households

Fixed Assets

v Computer

v Furniture & Fixture

v Laboratory Equipment

v Motor Car

v Motor Vehicle

v UPSX

Name of the company	HI TECH TELECOM LIMITED
Presented By	Vysya Bank
1) Date and description of instrument creating the change	Agreement for hypothecation of stock in trade, machinery, book debts, bills and all other movable dated 11.02.2002
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 3.000 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation of stock of industrial electronic components and bills receivable from sundry debtors.
4) Gist of the terms and conditions and extent and operation of the charge.	Interest @ PLR + 2 % Subject to minimum of 15.5% on SOD. Repayable on demand.
5) Name and Address and description of the person entitled to the charge.	Vysya Bank, Visweshrapuram Branch, Bangalore
6) Date and brief description of instrument modifying the charge	Not Applicable
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Not Applicable
Name of the company	HI TECH TELECOM LIMITED
Presented By	State Bank of India, Overseas Branch, M G Road, Bangalore – 560001
1) Date and description of instrument creating the change	Agreement for hypothecation of Goods and assets dated 17.01.2003
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 9.500 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation of all present and future goods book debts, schema, claims, including claims by way of refund of other scheme, bills, invoice, document, contracts, insurance, of the bank or any kept and whethere in possession of the elsewhere through out the world including all such goods, other movable assets as may be in course of shipment, transit or delivery by way of first charge.
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of Interest – CC – 1.6% over SBAR – Rate – 12.35% per annum with periodical rests of at such rate periodical rests as may be LC – as per bank guidelines – issued from time to time Margin – 25% on RM/SIP/FG/LC & 40% on book debts Repayment – on demand
5) Name and Address and description of the person entitled to the charge.	State Bank of India, Overseas Branch, M G Road, Bangalore – 560001
6) Date and brief description of instrument modifying the charge	Not Applicable
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Not Applicable

As per Website Details:

Profile:

HI-TECH TELECOM LIMITED ( HI-TECH ) is a closely held professionally managed company incorporated in 1994 and head quartered in Bangalore,INDIA. Hi-Tech Telecom has been an active player in Global Electronic Component Market since 2000 A.D, providing total solutions to Manufacturing Industries. The current year's group turnover exceeds $5 Million with branches at Delhi,Mumbai,Hyderabad and Chennai.

Services:

INTEGRATED CIRCUITS

2. SEMI CONDUCTORS-DISCRETE

3. PASSIVE COMPONENTS

4. ELECTRO-MECHANICAL COMPONENTS

Presently we are catering to the needs of

TELECOM SECTOR

2. POWER SECTOR

3. INDUSTRIAL SECTOR

GENERAL PURPOSE ELECTRONIC COMPONENTS

The company is managed by Techno-commercial professionals.Further the team consists of Sales engineers to provide personal services to their valued customers & to meet increasing demand in the market.

TECHNICAL SUPPORT & CUSTOMER SERVICE

They regularly consult all the R & D departments of the Original Equipment Manufacturer and participate in giving suggestions such as design of circuits for mounting of different electronic components making equipment compact and also supporting them in production of end-user products. They are dedicated to catering requirements of their valued clients with personalized service. They provide value added services by providing innovative supply solutions and flexibility to meet the changing and dynamic needs of their valued customers

Products:

Products Supported

Click the 'more' button below to check the table that shows the semiconductor products (other than ON Semiconductor Products) that they can currently source and support.  They have categorized them below for easy reference associating with the manufacturers

Products Supported

Following are the list of line card supoprted by us.  They have categorized them below for easy reference associating with the manufacturers.Apart from this they do general sourcing.

v Texas Instruments

v Daco Semiconductor Co., Limited, Taiwan

v Njrc

v Frontier Electronics Co., Limited, Taiwan

v Xiamein Hongmei Electronics Co., Limited, China &
Ningbo Forward Relay Corp., Limited, China

v Cinetech Industrial Co.Limited., Taiwan

v Jackcon Capacitor Electronics Co., Limited, Taiwan

v Everlight Electronics Co. Limited, Taiwan

v Feeling Team Inc., Taiwan

v Bsc Filters, Uk

v Jyebao Co. Limited, Taiwan

v Ditom Microwave Inc., Usa

v The Ferrite Co. Inc., Usa

v Compel Electronics, Gmbh

v Epcos 

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.46.17
UK Pound	1	Rs.86.06
Euro	1	Rs.59.14

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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