MIRA INFORM REPORT

Report Date :

13.11.2006

IDENTIFICATION DETAILS

Name :	RANGSONS ELECTRONICS PRIVATE LIMITED
Registered Office :	347, D 1 & 2, KIADB Electronic City, Hebbal Industrial Area, Mysore – 570 016, Karnataka, INDIA.
Country :	India
Financials (as on) :	31.03.2004
Date of Incorporation :	13.06.1993
Com. Reg. No.:	08-14470
CIN No.: [Company Identification No.]	U31909KA1993PTC014470
TAN No.: [Tax Deduction & Collection Account No.]	BLRR02027E
Legal Form :	Private limited liability company.
Line of Business :	Manufacturers, Importers, Exporters and Dealers of all kinds of electronic machinery, components, spares, accessories, electronic parts and computer hardware, software development, data processing and computer education/training 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 :	USD 80000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company having satisfactory track. Directors are reported as experienced, respectable and having substantial means of their own. Their trade relations are fair. Financial position is good. Payments are usually correct and as per commitment. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office/Factory:	347, D 1 & 2, KIADB Electronic City, Hebbal Industrial Area, Mysore – 570 016, Karnataka, INDIA.
Tel. No.:	91-821-2404550 – 554
Fax No.:	91-821-2404529
E-Mail :	1)phanisha@bgl.vsnl.net.in 2) srinivasrao@reve.com
Website :	http://www.revc.com
Area :	20000 sq. fts.
Location :	Owned
Regional office:	Parvati Plaza, 1^st Floor, 104/105, Richmond Circle, Bangalore – 560 025, Karnataka, India
Tel. No.:	91-80-2272038
Fax No.:	91-80-2272039
E-Mail :	srinivasrao@revc.com
Corporate Office :	Rangsons House, P. B. No. 52, 1553, Vani Vilasa Road, Mysore – 570004, Karnataka
Tel. No.:	91-821-22521227/2330420/2362816
Fax No.:	91-821-22520350
Overseas office :	Located at Singapore, Dubai, Germany, France and USA
Group offices:	All over India

DIRECTORS

Name :	Mr. Arjun Ranga
Designation :	Director
Address :	2634, II Main, Gokulam, V V Mohalla, Mysore – 570002, Karnataka
Date of Birth/Age :	30/04/74
Date of Appointment :	31/03/2001
Name :	Mr. Guru Ranga
Designation :	Chairman and Managing Director
Address :	3005, Gokulam, V V , Mohalla, Mysore – 570002, Karnataka
Date of Birth/Age :	9/10/42
Date of Appointment :	31.03.2001
Name :	Mr. K. N. Phanisha
Designation :	Director – Finance
Address :	3, 20^th Block, Madhuvana Layout 8^th Cross, Sriramapuram II Stage, Mysore- 23
Date of Appointment :	13/01/2003
Name :	Mr. Pavan G. Ranga
Designation :	Chief Executive Officer
Name :	Mr. H. M. Dattatri
Designation :	Company Secretary
Name :	Mr. G. J. Singh
Designation :	Vice President - Sourcing and SCM
Name :	Mr. R. C. Scuchitra
Designation :	Vice President – Operations
Name :	Mr. H. S. Ramesh
Designation :	Head - HRD

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mr. Arjun Ranga	3489
Mr. Guru Ranga	2544
Mr. Anirudh Ranga	1672

BUSINESS DETAILS

Line of Business :	Manufacturers, Importers, Exporters and Dealers of all kinds of electronic machinery, components, spares, accessories, electronic parts and computer hardware, software development, data processing and computer education/training etc.
Imports from :	USA, Japan, Korea, Singapore, Malaysia, UK, Hong Kong and Taiwan
Terms :
Selling :	Credit (30-60 days)
Purchasing :	L/C or credit (60-120 days)

GENERAL INFORMATION

No. of Employees :	220
Bankers :	State Bank of Mysore, Ashoka Road, Mysore – 570 001, Karnataka
Facilities :	--

Banking Relations :	Satisfactory
Auditors :	Loknath & Company Chartered Accountants Mysore, Karnataka
Associates/Subsidiaries :	Ø N Ranga Rao & Sons o Agarbatti manufacturers and exporters Ø Manmohak Creations Ø Property Marketing Services Ø VCT Labs Ø Rangsons Perfumes Private Limited Ø Natural Essential Oils Private Limited
Parent company:	Ø Rangsons Group Leading industrial house in South India, with a spectrum of divisions taking care of its multifaced activities viz. Incense sticks, essential oils, perfumes, etc.

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
30000	Equity shares	Rs. 100/- each	Rs. 3.000 millions
6500	Redeemable Preference Shares	Rs. 1000/- each	Rs. 6.500 millions
	Total		Rs. 9.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20000	Equity shares	Rs. 100/- each	Rs. 2.000 Millions
20000	Redeemable Preference Shares	Rs. 100/- each	Rs. 2.000 Millions
	Total		Rs. 4.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2004	31.03.2003	31.03.2002
SHAREHOLDERS FUNDS
1] Share Capital		4.000	2.490	2.440
2] Share Application Money		18.080	14.800	11.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		22.080	17.290	13.440
LOAN FUNDS
1] Secured Loans		43.690	37.770	35.030
2] Unsecured Loans		20.390	19.510	18.180
TOTAL BORROWING		64.080	57.280	53.210
DEFERRED TAX LIABILITIES		5.960	3.680	0.000
TOTAL		92.120	78.250	66.650
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		52.960	43.290	39.830
Capital work-in-progress		0.000	7.360	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	12.650	15.530	27.600
	Sundry Debtors	32.630	23.140	25.200
	Cash & Bank Balances	6.850	4.620	4.180
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	11.530	8.160	8.730
Total Current Assets		63.660	51.450	65.710
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	24.500	20.270	33.700
	Provisions		3.580	5.190
Total Current Liabilities		24.500	23.850	38.890
Net Current Assets		39.160	27.600	26.820
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		92.120	78.250	66.650

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2004	31.03.2003	31.03.2002
Sales Turnover [including other income]	112.500	136.870	154.500
Profit/(Loss) Before Tax	5.240	7.550	12.110
Provision for Taxation	1.870	2.240	3.530
Profit/(Loss) After Tax	3.370	5.310	8.580
Export Value
USD	131.675	81653	7154
EURO	0	299	0
Import Value	48.710	84.250	94.230
Total Expenditure	N.A	127.830	138.360

KEY RATIOS

PARTICULARS		31.03.2004	31.03.2003	31.03.2002
PAT / Total Income	(%)	3.00	3.87	5.55
Net Profit Margin (PBT/Sales)	(%)	4.65	5.52	7.85
Return on Total Assets (PBT/Total Assets}	(%)	4.49	7.97	11.47
Return on Investment (ROI) (PBT/Networth)		0.23	0.43	0.90
Debt Equity Ratio (Total Liability/Networth)		4.01	4.69	6.85
Current Ratio (Current Asset/Current Liability)		2.60	2.15	1.69

LOCAL AGENCY FURTHER INFORMATION

The company’s fixed assets of important value include land, building, plant and machinery, furniture and fixtures and vehicles.

HISTORY

The company was incorporated on 13^th June 1993 at Mysore in Karnataka having Company Registration Number 14470.

The company’s registered office was shifted from Rangsons House, P. B. No. 52, 1553, Vani Vilasa Road, Mysore - 570 004, Karnataka to present address before six months.

The company’s factory was also shifted from 145, Manandavadi Road, Mysore - 570 008, Karnataka to present address before six months.

It is in trade terms with:

Ø Multicore, Malaysia

Ø Nippon Electronics, Japan

Ø Advance Technology, USA

Ø Samsung, Korea

Ø Quantum, UK

Ø Memec Components, Hong Kong

Ø Epotech Electric Corporation, Taiwan

Ø Wintech Corporation, Japan

Ø Kobaden Electronics, Japan

Ø Future Electronics Distribution Pte. Ltd., Singapore

Ø Wipro Ge Medical Systems Limited, Bangalore, Karnataka, India

Ø Larsen & Toubro Limited, Mysore, Karnataka, India

Ø Wipro Peripherals / Wipro Limited, Mysore, Karnataka, India

Ø Bharat Heavy Electricals Limited, Bangalore, Karnataka, India

Ø Asea Brown Boveri Limited, Bangalore, Karnataka, India

Ø Indian Telephone Industries Limited (ITI), Bangalore, Karnataka, India

Ø Tata Electronic Development Services, Bangalore, Karnataka, India

Ø BPL Group, Palakkad

Ø BPL Group, Bangalore, Karnataka, India

Ø HCL Information Systems Limited, Bangalore, Karnataka, India

Ø Crompton Greaves, Bangalore Karnataka, India

Ø Enercon Systems Private Limited, Bangalore Karnataka, India

Ø Electronic Corporation of India Limited, Hyderabad, Andhra Pradesh, India

Ø HCL Peripherals Limited, Chennai, Tamilnadu, India

Ø HCL Peripherals Limited, Pondicherry, Tamilnadu, India

Ø Kirloskar Electric Company Limited, Mysore, Karnataka, India

TRADE REFERENCE

Ø Emerson Network Power India Private Limited

Ø Tata Honeywell Limited

Ø Aspire Communications Private Limited

Ø Chaya Graphics Private Limited

Ø Electro Magnetic Devices

AS PER WEBSITE

Vision

To become a global leader in Electronic manufacturing by providing complete solutions required to transform ideas into successful products & services

Mission

v To maximize the value of all their Stake Holders including Employees, Customers, Share Holders & Suppliers by providing quality products & services through Total Electronic Manufacturing Solutions (TEMS).

v To assure the highest level of customers satisfaction by being flexible.

v To address the need of the induvisual customer by being systems driven & process centric.

v To develop people within & outside the organization by encouraging the employees to work diverse teams & through training & delegation.

v To work with the highest level of ethical standards in all dealings.

v To serve the community to be environment friendly

Equipment

Rangsons Electronics features a flexible, fully automatic in-line Surface Mount process. Their SMT process portrays outstanding equipment from the leaders in their industry. They have designed their automated processes specifically to allow for quick changeovers and flexibility as well as mid-high volume runs.

People

The company at Rangsons Electronics believe that-

v their people are the most valuable assets.

v they owe their success to the commitment & dedication of their work force.

v Training is the backbone of the company’s success in the development & implementation of global quality systems.

The latest trends in Technology is continually updated within the organization through their extensive Training Programmes. theirTraining center supports the requirements for the entire spectrum of Operational & Managerial activities by providing very dynamic training & development services with the belief that an educated workforce has better ability to contribute to generation of innovative ideas and implementation solutions.

PLANT LIST :

LINE ALPHA

Screen Printer

SMD Placement - Chip Shooter

SMD Placement - Flexible Placer

Reflow Soldering

LINE BETA
Screen Printer

SMD Placement

Reflow Soldering

LINE GAMMA

Screen Printer

Specifications of SMD Placement

Specifications of Reflow Soldering

LINE DELTA

Screen Printer

SMD Placement

Reflow Soldering

Specifications for Machineries

MYDATA

FUJI

Specifications of Screen Printers

Specifications of Reflow Ovens

Standards and Certifications

All 4 facilities of Rangsons are ISO 9001:2000 certified. Their main facility is also ISO 14001 & 18001 certified*. From order entry through the entire manufacturing process & support services, all activities are processed & controlled in accordance with the quality management system for ISO 9001. They have been assessed & certified by TUV Suddeutschland.

The company are totally committed to producing PWA's in a high yield manufacturing process & PWA's are manufactured to conform to the IPC- 610C standards adhering to all contractual & customer requirements

Rangsons Electronics has embarked on certification strategy with a strong sense of commitment to achieving Customer Delight through Quality, Delivery, Cost, along with controlling the usage of resources used for manufacturing & with a drive towards protection & conservation of the environment

Quality Policy

REPL is committed to:

v  Establish Market Leadership By Adopting The State Of The Art Technology In The Field Of PCB Assembly And Through The Active Participation Of All Concerned.

v Provide A Competitive Atmosphere Through Continual Improvement, On-time Delivery And Identify And Meet The Needs Of The Customer To Give Complete Satisfaction.

Quality Circles

Rangsons Electronics considers process control as the key to achieve product reliability. Quality circles are formed with a commitment to proactive process control. Representatives from various related departments comprise of these teams who analyze the data utilizing various proven quality control methodologies to ensure that products cost and reliability is built-in through their controlled processes. SPC techniques are widely used.

Quality basic model is that of –

Data collection

Pareto Analysis- identification of vital few problems

Fish bone Analysis

Brain storming sessions - evolve corrective & preventive actions.

This is followed by the implementation phase of the corrective & preventive actions during which stringent monitoring is done to analyze the effectiveness of the corrective actions before the closure of the non-conformance.

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. 44.90
UK Pound	1	Rs. 85.91
Euro	1	Rs. 57.78

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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		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