MIRA INFORM REPORT

Report Date :

04.10.2007

IDENTIFICATION DETAILS

Name :	AT AND S INDIA PRIVATE LIMITED
Formerly Known As :	INDAL ELECTRONICS LIMITED
Registered Office :	12/A, Industrial Area, Nanjangud – 571301, Mysore District, Karnataka
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	30.05.1988
Com. Reg. No.:	25863
CIN No.: [Company Identification No.]	U85110KA1999PTC025863
TAN No.: [Tax Deduction & Collection Account No.]	BLRA05803A
PAN No.: [Permanent Account No.]	AAECA29301
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in the business as manufacturers, exporters and marketers of Printed Circuit Boards, Software Development, IT solutions, Research and Development, etc. It is also engaged in software development and providing IT solutions.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Maximum Credit Limit :	USD 3232956
Status :	Slightly Moderate
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Financial position is moderate. Payments are usually correct and as per commitments. The company can be considered moderate for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office / Factory:	No: 12/A, Industrial Area, Nanjangud – 571301, Mysore District, Karnataka, India
Tel. No.:	91-8221-304000
Fax No.:	91-8221-228570 / 228571 / 228572
E-Mail :	info@in.atspcb.com info@in.ats.net sales@ats.net
Website :	http://www.ats.pcb.com
Area :	80000 sq. ft.
Location :	Owned
Factory 1 :	12/A, Industrial Area, Nanjangud, Mysore District – 571 301, Karnataka, India
Branch 1 :	No. 201, 2^nd Cross, 4^th Main, Koramangala, 1^st Block, Bangalore 560 034, Kanataka, India
Tel. No.:	91-80-51217891
Fax No.:	91-80-51217895
E-Mail :	mattoo@in.ats.net
Location :	Rented
Branch 2 :	Suite No. 1015, Navrang House, No. 21, Kasturba Gandhi Marg, New Delhi 1, India
Location :	Rented
Branches:	Ø Austria Ø Germany Ø India Ø China Ø Korea

DIRECTORS

Name :	Mr. Barandadi Suryaprasad Hegde
Designation :	Managing Director & Chief Operating Officer
Name :	Mr. Pradeep Mehta
Designation :	Managing Director, Chief Financial Officer & Company Secretary
Address:	2C, Decodar Park, Apartment II, Main VII Cross Vontikoppal, Mysore – 570002
Date of Birth/Age :	45 Years
Qualification :	CA, ACS, B. Law
Experience :	24 Years
Date of Appointment :	01.04.2005
Previous employment :	Enron India Private Limited
Name :	Mr. Sommerkr Hrralo
Designation :	Director
Name :	Mr. Hamsen Eilskoy Steen
Designation :	Director
Address:	Eduard – Preiffer Str – 61, Stuitgart – 70192
Date of Birth/Age :	28.10.1958
Date of Appointment :	11.03.2004
Name :	Mr. Moitzi Heinz
Designation :	Director
Address:	Australia – 8740
Date of Birth/Age :	05.07.1956
Date of Appointment :	11.03.2004

KEY EXECUTIVES

Name :	Mr. Dr. Herald Sommerer
Designation :	Chairman
Address:	Dirbockweg 3A – 8700, Leoben, Australia
Date of Birth/Age :	15/03/1967
Date of Appointment :	21/10/1999

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
List of Equity Shareholders
Austria Technologie and System Technik AG	13362499
Mr. Pradeep Mehta	1
Total	13362499
List of Preferences Shareholders
Austria Technologie & System Technik	2500000

BUSINESS DETAILS

Line of Business :	Subject is engaged in the business as manufacturers, exporters and marketers of Printed Circuit Boards, Software Development, IT solutions, Research and Development, etc. It is also engaged in software development and providing IT solutions.
Product	Prinyed Circuit Boards – 85340001 Its’ products range includes: - v Impedance Control PCB’s v Blind via sequential build up & 12 layer sample development v High Tg material (170 Tg) v BT Epoxy (Trials ongoing) v Carbon Printing – Sample developed
Exports:
Countries :	Austria, Germany, Australia, Netherlands, Malaysia, USA and Europe
Imports :
Products :	Raw Material
Countries :	Singapore, Taiwan, Malaysia, Germany, USA, UK and Japan
Terms :
Selling :	Credit (60 – 120 Days)
Purchasing :	L/C or Credit (60 – 90 Days)

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Printed Circuit Boards	Sq.mt.	227143	205504

GENERAL INFORMATION

Suppliers :

Ø Dupont (Singapore) PTE Limited, Singapore.

Ø Eternal, Taiwan

Ø Hitachi, Singapore

Ø Autotech, USA

Ø Electra, UK

Ø Taiyo, Japan

Ø Mega Tools, USA

Ø Kremmer, Germany

Ø Mitsui, Malaysia

Ø Gould, Germany

Ø Siemens Information Systems Limited, Bangalore

Ø Mitsui, Malaysia

Ø Nelco, Singapore

Ø Litton, Singapore

Ø BT Solders Private Limited, India

Customers :

Ø RAF, Germany

Ø ERG Communications, Germany

Ø Astek, USA

Ø Alcatel, Malaysia and Australia

Ø E – Mail DataCraft, Australia

Ø Analog Devices, USA

Ø Fibcom, USA

Ø Ericsson Radio Access, Sweden

Ø Nokia Networks, Sweden/India

Ø Motorola, USA/Singapore/India

Ø Siemens A&D Division, Berlin/Hamburg, Germany

Ø Valeo ITT, USA

Ø Delphi (Megomos), USA/Europe

Ø Department of Electronics, Government of India, New Delhi

No. of Employees :

Around 550

Bankers :

Ø Punjab National Bank, Devraj URS Road, Mysore, Karnataka

Ø Deutsche Bank AG, Raheja Towers, M. G. Road, Bangalore 560001, Karnataka

Facilities :

Secured Loan	Amount in Millions
Foreign Currency Term loans from Banks
Long term
Short term	161.864
From a company	1.668
Bank Borrowings	96.103
	259.635
Secured by way of a first charge on specific fixed assets and guarantee by Austria Technologies and Systemtechnik AG (AT & S), Australia, the holding company up to Rs. Nil
Secured by way a hypothecation of inventories and book debts and second charge on fixed asset and guarantee by Austria Technologies and Systemtechnik AG (AT & S), Australia, the holding company up to Rs. 0.180 Millions
Represents principal portion of minimum lease payment payable for assets acquired on finance leases
Secured by way of a hypothecation of inventories and book debts and second charge on fixed asset

Banking Relations :	Satisfactory
Auditors :
Name:	Price Waterhouse & Company Chartered Accountants
Address:	10^th Floor, C Wing, Mittal Tower, 47 / 6, M G Road, Bangalore 560 001, Karnataka, India
Associates :	Ø Indal Exports Limited Ø AT & S Group, Austria
Subsidiaries :	AT&S Asia Pacific Limited, Hong Kong
Holding Company	Ø AT and S Austria Technologie & Systemtechnik AG, Austria Ø AT and S AG, Austria

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
15,000,000	Equity Shares	Rs.10/- each	Rs.150.000 Millions
2,500,000	1% Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.250.000 Millions
	TOTAL		Rs.400.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13,362,500	Equity Shares	Rs.10/- each	Rs.133.625 Millions
2,500,000	1% Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.250.000 Millions
	TOTAL		Rs.383.625 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		383.625	383.625	383.625
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		424.614	603.768	469.426
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		808.239	987.393	853.051
LOAN FUNDS
1] Secured Loans		259.635	150.005	178.981
2] Unsecured Loans		303.698	365.365	181.679
TOTAL BORROWING		563.333	515.370	360.660
DEFERRED TAX LIABILITIES		0.000	0.000	76.657
TOTAL		1371.572	1502.763	1290.368
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		994.504	1030.265	749.357
Capital work-in-progress		24.568	45.484	244.827
INVESTMENT		1.362	1.362	1.406
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	354.965	357.354	304.375
	Sundry Debtors	160.069	196.549	190.464
	Cash & Bank Balances	10.912	16.366	100.680
	Other Current Assets	4.447	4.558	4.593
	Loans & Advances	203.313	151.840	109.662
Total Current Assets		733.706	726.667	709.774
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	357.895	293.697	406.865
	Provisions	24.673	11.318	8.131
Total Current Liabilities		382.568	305.015	414.996
Net Current Assets		351.138	425.652	294.778
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1371.572	1502.763	1290.368

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales	1599.600	1734.118	1544.344
Other Income	99.864	85.255	0.000
Total Income	1699.464	1819.373	1544.344
Profit/(Loss) Before Tax	(176.293)	86.951	209.290
Provision for Taxation	58.426	25.663	52.293
Profit/(Loss) After Tax	(234.719)	61.288	156.997
Export Value	1224.994	1344.769	1036.173
Import Value	835.004	876.951	755.758
Expenditures :
Financial Charges	31.098	25.238	0.000
Other Expenses	1813.561	1681.946	1335.054
Total Expenditure	1844.659	1707.184	1335.054

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	(13.81)	3.36	10.16
Net Profit Margin (PBT/Sales)	(%)	(11.02)	5.01	13.55
Return on Total Assets (PBT/Total Assets}	(%)	(10.20)	4.92	14.34
Return on Investment (ROI) (PBT/Networth)		(0.21)	0.08	0.24
Debt Equity Ratio (Total Liability/Networth)		1.17	0.83	0.90
Current Ratio (Current Asset/Current Liability)		1.91	2.38	1.71

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets

Ø Leasehold Land

Ø Buildings

Ø Plant & Machinery

Ø Computers And Office Equipments

Ø Furniture & Fixtures

Ø Motor Vehicles

HISTORY:

Subject was incorporated on 30^th May, 1988 at Kolkata in West Bengal having Company Registration Number 44514.

Subject was originally incorporated under the name & style of Infobase Systems Private Limited. It became a Deemed Public Limited Company w.e.f. 15^th May, 1990 and changed its name to Infobase Finance Limited w.e.f. 18^th February, 1993. The company further changed its name to Indal Electronics Limited w.e.f. 18^th July, 1996 and then to the present w.e.f. 1^st April, 1999.

The company shifted its Registered office from Kolkata in West Bengal to Mysore in Karnataka with effect from 21^st October, 1999 and obtained a New Company Registration Number 25863 of the Registrar of Companies, Karnataka.

Name Changed to the present from 1^st April 1999, as a consequence of change in ownership from the Indian Aluminium Company Limited; Kolkata (Indal), to Austria Technologies and Systemtechnik AG; Austria (AT&S).

Performance Review

The revenue reduced by 6.5% compared to the last year. The volume registered a decrease of 3.15% from 212178 sq. mts. Of PCBs in 2004-2005 to 205504 sq. mts. In 2005-2006. PBDIT is reduced by 26.5% compared to last year. The company had registered a net loss of Rs. 174 millions as against a net profit of Rs. 62 Millions in the year 2004-2005.

Operation

During the year the company produced 205504 sq. mtrs of printed circuit boards. As the competition is growing in all sectors of PCB manufacturing, for strategic reasons, the company had to increase the volume of the double sided boards. Therefore the ratio of the double side to multi – layer was 40:60. however several short term and long term initiatives have been designed under project “Navodaya” to achieve a turn around in profitability of the company.

Measures towards quality improvement and technology absorption research & development taken during 2005 – 2006

The company has taken several initiatives to improve the quality of the Boards during 2005-06, Few among them are :

Reliability of PCBs with high hole density is established by fine tuning the Seleo process and by installing vibrators in pattern plating lines.

Quality of drilled holes improved by better process controls to improve the reliability of PCBs.

Lead free hot air solder leveling process in introduced and stabilized.

Business Outlook

The year 2005 – 06 continued to see lower demand and continued price pressure. This year out of total revenues of the company 11.44% was generated through telecomm sector 52.12% from industrial sector and 38.44% from automotive sector. This ration is expected to improve further by increased penetration into automotive segment. The company is concentrating on value adder services, superior quality levels.

India is witnessing some exciting times with all telecom and CEM major announcing major investments in India. In the last 18 months there have been announcements by more than 10 Multi National Companies indicating investments to the tune of USD 5-7 Billion. For “Telecom Equipment Manufacturing”. This includes announcement made by some chip manufacturers to start production in India. Since easy and top quality component availability is going to be key success factor to sustain the manufacturing drive in India, this announcement is very critical. Subject will take all initiatives possible to reap the benefits of these developments.

Certification

The company has been accredited with:

· ISO 9002 From 1993 From: BSIQA; UK Certification.

· ISO 14001 From 1996 From: Aspects, UK Certification.

A Joint Team of ELCINA (Electronic Component Industries Association), Commonwealth Science Council, UK and Rajiv Gandhi Foundations have chosen the company as one of the five model plants in India as Technology leaders on Environment Management in Electronics & IT sectors.

It has absorbed technology from AMP-AKZO INC, USA.

It is in trade terms with:

Austria Technologies and Systemtechnik AG; Austria

As Per Web Details:

India

Subject already is the largest producer of printed circuit boards in India. The plant in Nanjangud produces multilayer printed circuit boards for midrange and large-scale series. Continuous investments are developing the technological equipment and capacity is constantly expanding.

The Nanjangud printed circuit boards are used predominantly in the areas of industrial and medical technology, and in the automotive industry as well. The location can be expanded as required.

In July 2005 subject acquired the Indian company ECAD (located in Bangalore), which specializes in printed circuit board design. The aim in acquiring this company was to extend the range of services subject provides and to offer customers good prices at the printed circuit board design stage. Subject, the largest manufacturer of printed circuit boards in India, is now also becoming the biggest designer of these components.

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.39.79
UK Pound	1	Rs.81.23
Euro	1	Rs.56.41

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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		63

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