MIRA INFORM REPORT

Report Date :

29.11.2007

IDENTIFICATION DETAILS

Name :	MOLEX INDIA LIMITED
Registered Office :	Maker Bhavan No. 2, 5^th Floor, New Marine Lines, Mumbai – 400 020, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	06.11.1985
Com. Reg. No.:	11-37995
CIN No.: [Company Identification No.]	U31300MH1985PLC037995
TAN No.: [Tax Deduction & Collection Account No.]	BLRM01567G
Legal Form :	Closely Held Public Limited Liability Company.
Line of Business :	Manufacturing and marketing of PCB Interconnection System, Ribbon Cable Connectors, IC Sockets, Micro Spoc Interconnection System, PCB Edge Card Connectors, Telephone Plugs & Jacks, Breakaway Headers, Disk Drive, Power Connector and Custom Made Hardness.

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 2965996
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are fair. Financial position is satisfactory. Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Maker Bhavan No. 2, 5^th Floor, New Marine Lines, Mumbai – 400 020, Maharashtra, India
Tel. No.:	91-80-28452911-20 / 2030261 / 62 / 2052508
Fax No.:	91-80-28452922
E-Mail :	1) india@molex.com 2) infin@bom3.vsnl.net.in
Website :	http://www.molex.com
Corporate Office / Factory	Plot No. 6(A), Sadaramangala Industrial Area, Kadugodi, Bangalore – 560 067, Karnataka, India
Tel. No.:	91-80-2845 2911 to 20 (10 Lines)
Fax No.:	91-80-2845 2922 /21

DIRECTORS

Name :	Mr. Niranjan Kantilal Shah (Foreign)
Designation :	Whole Time Director
Address :	B / 201, Retreat Tower, Opposite Shyamal Row, Houses No. 1, 132, Ring Road, Satelite, Ahmedabad – 380015, Gujarat
Date of Birth/Age :	13.05.1948 (50 years)
Qualification :	BE, MBA
Experience :	25 years
Date of Appointment :	24.06.1993
Date of Ceasing:	08.07.2002
Previous Employment:	Container Corporation of America Manufacturing Engineer (3 years)
Name :	Ms. Minal Niranjan Shah
Designation :	Director
Address :	131, Neelamber, 37, G. D. Marg. Mumbai – 400026, Maharashtra
Date of Birth/Age :	14.07.1951
Date of Appointment :	30.01.2003
Name :	Mr. Engler Werner (Foreign)
Designation :	Director
Address:	12, Pierce Road, Singapore – 248537.
Date of Birth/Age :	15.12.1950
Date of Appointment :	24.02.2002
Ceasing Date:	27.03.2003
Name :	Mr. Frederick August Krehbiel (Foreign)
Designation :	Director
Address :	42B, Nassim Road, Singapore
Date of Birth/Age :	02.06.1941
Date of Appointment :	26.03.1987
Name :	Mr. Thomas Sturges Lee (Foreign)
Designation :	Director
Address :	9, Regency Park, 24 – 03, Nathan Road, Singapore
Date of Birth/Age :	28.11.1955
Date of Appointment :	23.05.1988
Name :	Mr. Mahesh Laxmidas Shrikant
Designation :	Director
Address:	Mumbai –400 049, Maharashtra
Ceasing Date:	28.08.2002
Date of Birth/Age :	23.01.1936
Date of Appointment :	18.10.1987
Name :	Mr. James Earl Fleischhakker (Foreign)
Designation :	Director
Address :	505, Couty Line Road, Hindsdale, Illinois – 60521, U.S.A.
Date of Birth/Age :	13.05.1944
Date of Appointment :	12.04.2000
Name :	Mr. Robert Buchanan Mahoney
Designation :	Director
Address :	353, West Dickens Apartments – 2 W, Chicago Illinois - 60614, U.S.A.
Date of Birth/Age :	06.08.1953
Date of Appointment :	25.03.2004
Name :	Mr. Chandrakant Jechand Shah
Designation :	Secretary
Address :	No. 165, 4^th Cross, 5^th Main Road, Defence Colony, Hal 2^nd Stage, Indiranagar, Bangalore – 560038, Karnataka, India
Date of Birth/Age :	26.10.1928
Date of Appointment :	01.02.2001
Election Commission Identity Card No. :	LBR3293529

KEY EXECUTIVES

Name :	Mr. Chandrakant Jechand Shah
Designation :	Company Secretary
Address :	B/201, Retreat Tower, 132, Ring Road, Satellite, Ahmedabad – 380015.Gujarat
Date of Birth/Age :	26-10-1928
Date of Appointment :	01-02-2001

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Molex International Inc.	24599999
Molex Incorporated	1
Niranjan Jeewalal Shah	10
Satish Ramanlal Mehta	10
Usha C. Narvekar	10
Rohini Niranjan Shah	499200
Aims Investments and Trades Private Limited	50000
Niranjan J. Shah	10
Minal Shah	10
Niranjan J. Shah	10
Minal N. Shah	10
Niranjan J. Shah	25000
Niranjan Jeewanlal Shah	25000
Niranjan J. Shah	20000
Niranjan Jeewanlal Shah	25000
Niranjan J. Shah	20000
Minal N. Shah	10
Niranjan J. Shah	25000
Minal N. Shah	20000
Niranjan Kantilal Shah	749600
Niranjan J. Shah	25000
Niranjan J. Shah	25000
Niranjan J. Shah	25000
Aniket N. Shah	25000
Niranjan J. Shah	25000
Niranjan J. Shah	21600
Minal N. Shah	71530
Niranjan J. Shah	25000
Niranjan J. Shah	25000
Anirudh N. Shah	25000
Minal N. Shah	8000
Niranjan J. Shah	8000
Mohan S. Singrachar	312500
Niranjan Jeewanlal Shah	25000
Niranjan Jeewanlal Shah	25000
Molex Internatiol Inc.	10
TOTAL	26730520
Category	Percentage
Foreign Holding (Flls/FCs/FFls/NRls/OCBs)	100.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing and marketing of PCB Interconnection System, Ribbon Cable Connectors, IC Sockets, Micro Spoc Interconnection System, PCB Edge Card Connectors, Telephone Plugs & Jacks, Breakaway Headers, Disk Drive, Power Connector and Custom Made Hardness.
Products :	Connectors (including connectors having wires) · Crimping tools and Parts of Dies
Product Description	Item Code No.
Connectors [including connectors having wires]	84731009, 84732100, 84732900, 84733009, 85179000, 85299000
Crimping tools & parts of dies	8207
Brand Names :	‘MOLEX’

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Professional Grade Connectors	Nos.	Not yet ascertained	991690381

GENERAL INFORMATION

No. of Employees :	Around 400
Bankers :	Canara Bank, Mumbai, Maharashtra Bank of Baroda, Mumbai, Maharashtra

Banking Relations :	Good
Auditors :	Deloitte, Haskins & Sells Chartered Accountants, Deloitte House, 70/3, Miller Road, Bangalore – 560052, Karnataka, India Tel. No. : 91-80-2254610 K. P. Rao & Company Chartered Accountants, ‘Poornima’, 25, State Bank Road, Bangalore – 560001, Karnataka, India Tel. No. : 91-80-25587385 / 25586814 Fax No. : 91-80-25594661 Grams : ‘SUREAUDIT’ E-mail : kprao@vsnl.com K. Viswanath Chartered Accountants Poornima, No.25, State Bank Road, Bangalore 560001,Karnataka, India.
Associates :	Molex Mafatlal Micron Limited
Subsidiaries :	Molex [Malaysia] Sdn Bhd Molex Private Limited Molex Thailand Limited Molex De Mexico S. A. De C.V. Molex G. Knutsen AS Molex G. Ostervig A/S Molex GmbH Molex Hong Kong Limited Molex China Limited Molex Incorporated Molex Interconnect AG Molex Interconnect Shanghai Company Molex Ireland Molex Japan Company Limited Molex Korea Company Limited Molex Premise Networks – U.S.A. Molex Premise Networks Asia Limited Molex Premise Networks Limited, Australia Molex Premise Networks Sp Zoo, Poland Molex Singapore Pte Limited Molex Taiwan Limited Molex Mafatlal Micron Limited Molex India Tooling Private Limited
Parent Company :	Molex International Inc., USA

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs. 100/-	Rs. 250.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
24960000	Equity Shares	Rs. 10/-	Rs. 249.600 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		249.600	249.600	249.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		491.899	436.777	397.487
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		741.499	686.377	647.087
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		12.431	0.000	0.000
TOTAL		753.930	686.377	647.087
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		178.890	177.719	166.065
Capital work-in-progress		6.366	2.865	0.907
INVESTMENT		46.868	50.939	50.938
DEFERREX TAX ASSETS		0.000	4.662	1.763
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	256.364	173.033	162.543
	Sundry Debtors	388.907	256.519	226.764
	Cash & Bank Balances	176.249	152.582	175.623
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	309.413	265.067	241.374
Total Current Assets		1130.933	847.201	806.304
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	609.129	397.009	378.892
	Provisions	0.000	0.000	0.000
Total Current Liabilities		609.129	397.009	378.892
Net Current Assets		521.804	450.192	427.412
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		753.930	686.377	647.087

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		785.728	987.550	836.287
Other Income		35.078	0.000	0.000
Total Income		820.806	987.550	836.287
Profit/(Loss) Before Tax		99.033	76.646	55.521
Provision for Taxation		456.862	33.601	14.099
Profit/(Loss) After Tax		357.829	43.045	41.422
Earnings in Foreign Currency :
	Export Earnings	0.000	0.000	0.000
	Commission Earnings	0.000	0.000	0.000
	Other Earnings	527.986	411.238	354.437
Total Earnings		527.986	411.238	354.437
Imports :
	Capital Goods	0.000	0.000	0.000
	Others	0.000	424.110	381.894
Total Imports		0.000	424.110	381.894
Expenditures :
	Raw Material Consumed	544.791	519.442	0.000
	Purchases made for re-sale	387.253	116.860	0.000
	Consumption of stores and spares parts	33.613	32.045	0.000
	Increase/(Decrease) in Finished Goods	(2.326)	(3.599)	0.000
	Salaries, Wages, Bonus, etc.	70.196	50.420	0.000
	Managerial Remuneration	0.753	0.706	0.000
	Payment to Auditors	0.424	0.281	0.000
	Interest	0.000	0.000	0.000
	Insurance Expenses	4.272	5.641	0.000
	Power & Fuel	13.811	12.271	0.000
	Depreciation & Amortization	40.476	35.042	0.000
	Other Expenditure	156.494	141.790	780.785s
Total Expenditure		1249.761	910.903	780.785

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	43.59	4.35	4.95
Net Profit Margin (PBT/Sales)	(%)	12.60	7.76	6.63
Return on Total Assets (PBT/Total Assets}	(%)	7.56	7.47	5.70
Return on Investment (ROI) (PBT/Networth)		0.13	0.11	0.08
Debt Equity Ratio (Total Liability/Networth)		0.82	0.57	0.58
Current Ratio (Current Asset/Current Liability)		1.85	2.13	2.12

LOCAL AGENCY FURTHER INFORMATION

HISTORY

The company was incorporated on 6^th November, 1985 at Mumbai in Maharashtra having Company Registration Number 37995.

The company has shifted its entire operations to it’s Bangalore office.

Generic names of three principal products / services of the company are as under :

Item Code No.	Product Description
84731009, 84732100, 84732900, 84733009, 85179000, 85299000	Connectors [including connectors having wires]
8207	Crimping tools & parts of dies

Company’s product range includes –

· Connectors ( including connectors having wires)

· Crimping Tools & Parts of Dies

· Scrap

· Commission

The company has been enjoying the benefits and privileges arising from the ISO 9002 certification. The company is in the process of obtaining QS 9000 certification.

The company has technical collaboration agreement with Molex of USA who is one of the world leaders of manufacturing electronic connectors.

As part of an expansions program the company recently embarked upon, it acquired along with Molex International Inc., a majority stake in Molex Mafatlal Micron Limited. This company, which was a division of Mafatlal Industries Limited, manufactures Euro and IDC Connectors in collaboration with Siemens of Germany. This acquisition will enable Molex to increase its presence in the Telecom Business in India, by bringing about synergies in manufacturing and marketing.

The company introduced two new product range. The Gigapack range of high performance UTP products was launched to address the high end market need to support 622 Mbps ATM and Gigabit Ethernet and the other range of MLX power connectors for Home appliance, HVAC, Industrial Automation markets, etc.

The company continues to be a major foreign exchange earner in the Connector Industry.

An amount of Rs. 49.376 millions is due to Molex Inc., U.S.A. towards supplies on capital goods made in previous years. Which stands converted into an external commercial borrowing from Moles Inc., U.S.A. from June 2001 onwards. This loan is repayable by June 2001. This is to be paid as single bullet repayment at the end of the third year, June 2004.

WEBSITE DETAILS

Molex is the world's second-largest manufacturer of electronic, electrical and fiber optic interconnection products and systems. They also make a variety of switches and application tooling.

As a one-source supplier, they assure worldwide coordination of their resources to meet their customers' needs globally, regionally and locally.

In product development centers, manufacturing facilities and sales offices on six continents, the 27,000 people of Molex are 100 percent customer driven. This dedication has kept them one of the fastest growing companies in their industry since they opened their doors in 1938.

History

Molex is a plastic material developed by the late Frederick August Krehbiel. In 1938, he founded the Molex Products Company in Brookfield, Illinois to manufacture a variety of products from this material, including clock cases, flower pots, valve wheels and salt tablet dispensers.

In 1940, one of Frederick’s sons, John H. Krehbiel, Sr., joined Molex and soon recognized the importance of this material’s excellent electrical insulating properties. Later in the decade, Molex added metal stamping to its molding processes, resulting in its first connector assembly for Hotpoint/GE.

In the 1950s, Molex rapidly penetrated the appliance market with its low cost connector terminal blocks. The company launched its first plug and receptacle connector line in 1953. Through the rest of the decade, Molex continued to increase the range of its products for a variety of consumer and capital goods applications.

Molex reached a milestone in 1960. That year, the company introduced its first nylon plug and receptacle line, marking its evolution from a manufacturer of a material called Molex to an electronics corporation named Molex.

By 1967, Molex had established an international division, opening its first plant in Japan in 1970 and a plant in Ireland in 1971. Today, Molex operates 50 factories in 21 countries, and more than two-thirds of annual company revenues derive from products manufactured and sold outside the U.S.

Molex kept pace with the growth of the electronics industry in the 1980s by expanding its product lines to better serve the computer and business equipment markets. The company also established itself as a preferred supplier to the automotive industry.

In the early 1990s, Molex again proved its versatility by entering global growth industries such as telecommunications, industrial automation and premise networks. Today, as the world’s second-largest manufacturer of interconnection products and systems, the company continues its drive into new industries and applications.

Molex manufactures components from simple terminals to opto-electrical transceivers. Besides their extensive standard line, they work as development partners with their customers to design-in Molex innovations as integral features of their systems.

They are at the leading edge of every industry they serve, from pioneering the application of self-aligning and flat flexible circuitry for the automotive industry to designing the world's smallest connectors for more compact and powerful consumer electronics.

Their use of specialized contact geometries has spurred numerous Molex innovations in connector design for high speed applications from active components for the fiber optic market to higher-speed, higher-density backplane connectors and cable assemblies for the telecommunications industry.

New product development drives their business. Every year, they channel 6% or more of net revenue into R&D--among the highest spending in their industry. As a result, new products consistently generate nearly one-third of their annual sales.

In addition, Molex engineers around the world play a commanding role in setting international standards for the interconnection systems of the future.

The company’s fixed assets of important value include land, buildings, dies & molds, furniture & fixtures, office equipments, dies & moulds, plant & machinery, computers and vehicles.

Fixed Assets:

• Land
• Buildings
• Dies and Molds
• Plant and Machinery
• Computers
• Furniture and Fixtures
• Vehicles
• Office Equipment

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.39.68
UK Pound	1	Rs.82.11
Euro	1	Rs.58.81

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	YES
--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 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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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