MIRA INFORM REPORT

Report Date :

10.10.2007

IDENTIFICATION DETAILS

Name :	AT AND S INDIA PRIVATE LIMITED
Formerly Known As :	INDAL ELECTRONICS LIMITED
Registered Office :	12/A, Industrial Area, Nanjangud, Mysore District – 571 301, Karnataka
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	30.05.1988
Com. Reg. No.:	08-25863
CIN No.: [Company Identification No.]	U85110KA1988PTC025863
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 :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 3200000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a relatively small company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are however reported as usually correct and as per commitments. The company can be considered for small business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office / Factory:	12/A, Industrial Area, Nanjangud, Mysore District – 571 301, 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:	# 314, Premier Residency, 3 D, Dewan’s Road, Mysore – 570021, Karnataka, India Pradeep.mehta@in.ats.net
Date of Birth/Age :	25.09.1961
Qualification :	CA, ACS, B. Law
Date of Appointment :	21.02.2002
Previous employment :	Enron India Private Limited
Name :	Mr. Sommerkr Hrralo
Designation :	Director
Address :	Dirbockweg 3 A – 8700, Leoben, Austria
Date of Birth/Age :	15.03.1967
Date of Appointment :	21.01.1999
Name :	Mr. Hamsen Eilskoy Steen
Designation :	Director
Address:	Eduard – Preiffer Str – 61, Stuitgart – 70192 s.hansen@ats.net
Date of Birth/Age :	28.10.1958
Date of Appointment :	11.03.2004
Name :	Mr. Moitzi Heinz
Designation :	Director
Address:	8740, Zeltweg, Australia
Date of Birth/Age :	05.07.1956
Date of Appointment :	11.03.2004
Name :	Mr. Dorflinger Willibald
Designation :	Chairman
Address :	A – 8753, Fohnsdorf, Steirergasse, Austria
Date of Birth/Age :	20.05.1950
Date of Appointment :	21.01.1999
Date of Ceasing :	08.04.2005
Name :	Mr. Muller Peter
Designation :	Director
Address :	MAG Peter Muller, Franz – Schubert – Strase, 33-35-2384, Breitenfurt, Wien, Austria
Date of Birth/Age :	06.09.1965
Date of Appointment :	29.05.2001
Date of Ceasing :	09.09.2004
Name :	Mr. Jung Hans Peter
Designation :	Managing Director
Address :	2 E Temple Trees, Siddhartha Nagar, Mysore -570011, Karnataka, India
Date of Birth/Age :	11.07.1955
Date of Appointment :	21.02.2002
Date of Ceasing :	22.06.2005
Name :	Mr. Ottitsch Mathias
Designation :	Director
Address :	Bennogasse 29/18, A – 1080, Vienna, Austria
Date of Birth/Age :	11.02.1967
Date of Appointment :	11.03.2004
Date of Ceasing :	08.04.2005
Name :	Mr. Ma Patrick
Designation :	Director
Address :	5 A, Mountainville Court 7 Lok, Fung Path, Hong Kong
Date of Birth/Age :	08.01.1960
Date of Appointment :	22.06.2005

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
Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	99.99
Directors or relatives of directors	0.01
Total	100.00

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 – 570001, Karnataka, India Ø Deutsche Bank AG, Raheja Towers, M. G. Road, Bangalore 560001, Karnataka

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		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		383.625	383.625	383.625
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		424.685	424.614	603.768
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		808.310	808.239	987.393
LOAN FUNDS
1] Secured Loans		145.712	259.635	150.005
2] Unsecured Loans		380.638	303.698	365.365
TOTAL BORROWING		526.350	563.333	515.370
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1334.660	1371.572	1502.763
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		832.858	994.504	1030.265
Capital work-in-progress		1.686	24.568	45.484
INVESTMENT		1.362	1.362	1.362
DEFERREX TAX ASSETS		8.438	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	415.861	354.965	357.354
	Sundry Debtors	169.191	160.069	196.549
	Cash & Bank Balances	63.722	10.912	16.366
	Other Current Assets	1.830	4.447	4.558
	Loans & Advances	260.734	203.313	151.840
Total Current Assets		911.338	733.706	726.667
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	365.128	357.895	293.697
	Provisions	55.894	24.673	11.318
Total Current Liabilities		421.022	382.568	305.015
Net Current Assets		490.316	351.138	425.652
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1334.660	1371.572	1502.763

PROFIT & LOSS ACCOUNT

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

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	NA	(13.81)	3.36
Net Profit Margin (PBT/Sales)	(%)	NA	(11.02)	5.01
Return on Total Assets (PBT/Total Assets}	(%)	NA	(10.20)	4.92
Return on Investment (ROI) (PBT/Networth)		NA	(0.21)	0.08
Debt Equity Ratio (Total Liability/Networth)		1.17	1.17	0.83
Current Ratio (Current Asset/Current Liability)		2.16	1.91	2.38

LOCAL AGENCY FURTHER INFORMATION

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).

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

Fixed Assets

Ø Leasehold Land

Ø Buildings

Ø Plant & Machinery

Ø Computers And Office Equipments

Ø Furniture & Fixtures

Ø Motor Vehicles

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U85110KA1988PTC025863
Name of the company	AT AND S INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	12/A, Industrial Area, Nanjangud – 571301, Mysore District, Karnataka
Type of charge	Movable Property Floating Charge
Particular of charge holder	Punjab National Bank, Devraj URS Road, Mysore - 570001, Karnataka, India pnbmysore@rediffmail.com
Nature of description of the instrument creating or modifying the charge	Hypothecation on current assets and second charge on specified fixed assets
Date of instrument Creating the charge	07.11.2006
Amount secured by the charge	Rs. 160.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 10.25 % p.a. Terms of repayment Overdraft facility Margin 25 % [50 % on spares] Extent operation of the charge The charge is on the current assets and specific fixed assets Borrower without prior written consent of the bank sell or otherwise dispose of the properties hypothecated. Interest payable by the subject to change in the rate fixed by the RBI.
Short particulars of the property charged	Present and future stock of raw materials, work in process, finished goods, stores and spares etc. Present and future book debts, outstanding decrees, money receivable, investments etc. Properties are located in 12 A, Industrial Area, Nanjangud, Mysore.

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.39.55
UK Pound	1	Rs.80.44
Euro	1	Rs.55.49

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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