MIRA INFORM REPORT

Report Date :

07.03.2011

IDENTIFICATION DETAILS

Name :	ASCENT CIRCUITS PRIVATE LIMITED (w.e.f. 07.04.2000)
Formerly Known As :	RIC CIRCUITS PRIVATE LIMITED
Registered Office :	B-13, I.T.I Industrial Estate, Mahadevapura, Bangalore – 560 048, Karnataka
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	01.02.1999
Com. Reg. No.:	08-24700
CIN No.: [Company Identification No.]	U31200KA1999PTC024700
TAN No.: [Tax Deduction & Collection Account No.]	BLRA06934E
PAN No.: [Permanent Account No.]	AABCR2074D
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer, Importer and Exporter of Single Sided Printed Circuit Boards and Populated Boards.

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 634000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	B-13, ITI Ancillary Industrial Estate, Mahadevapura, Whitefield, Bangalore – 560 048, Karnataka, India
Tel. No.:	91-80-28511709
Fax No.:	91-80-28511709
E-Mail :	riclhosr@blr.vsnl.net.in manjunath@asscentcircuits.com ragee2001@rediffmail.com
Website :	http://www.ascentcircuits.com \
Area :	Rented
Head Office/ Factory :	Plot No. 111, Sipcot Industrial Complex, Phase – I, Hosur – 635 126, Tamilnadu Pradesh
Tel. No.:	91-4344-400102/ 400124
Fax No.:	91-4344-400128
E-Mail :	info@ascentcircuits.com
Website :	http://www.ascentcircuits.com
Area :	5.5 Acre
Location :	Owned
Branches :	Located at :- · Mumbai, Maharashtra · Delhi

DIRECTORS

As on 29.09.2009 

Name :	Mr. P. Manjunath
Designation :	Managing Director
Address :	1282, 13^th Cross Indira Nagar, II State, Bangalore-560038, Karnataka, India
Age :	05.02.1960
Qualification :	B. Tech.
Date of Appointment :	01.02.1999
Name :	Mr. Gopalan. Shankar Ram
Designation :	Joint Managing Director
Address :	201, Trinity Golf Links Apartments, 139/8, Sharadhamma Layout, Domlur, Bangalore – 560071, Karnataka, India
Age :	04.12.1959
Qualification :	B. Tech.
Date of Appointment :	01.02.1999
Name :	Mr. A. Arvind Rao
Designation :	Director
Address :	188 A, 6^th Main Road, Defence Colony, Indira Nagar, Bangalore – 560008, Karnataka, India
Age :	04.06.1959
Qualification :	B. Tech.
Date of Appointment :	01.02.1999

KEY EXECUTIVES

Name :	Mr. T. K. Nayanasudhan
Designation :	General Manager – (Q.A)
Name :	Mr. M. C. Thomas
Designation :	Assistant General Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2009

Names of Shareholders	No. of Shares
Mr. Yemanappa Shetty	750000
Arvind Rao Aroor	315000
Gopalan Shankar Ram	435000
Total	1500000

 Equity Share Breakup (Percentage of Total Equity)

AS ON 29.09.2009

Category	Percentage of Holding
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Importer and Exporter of Single Sided Printed Circuit Boards and Populated Boards.
Products :	Hiring Systems Instruments Printed Circuits Boards Telecom Products, etc.
Exports :
Products :	Printer Circuit Board
Countries :	· USA · Europe · UK
Imports :
Products :	Raw Material
Countries :	· Korea · China · Taiwan · Singapore · Germany · Hong Kong
Terms :
Selling :	Credit (60 to 90 days) or L/C (90 days)
Purchasing :	L/C, Cash and Credit (90 to 120 days)

PRODUCTION STATUS

As on 31.03.2008

Particulars	Unit	Installed Capacity	Actual Production
Single Sided Printed Circuit Boards and Populated Boards	Nos.	480000	248070.00

GENERAL INFORMATION

Suppliers :

· Scholleter, UK

· Doosan, Korea

· Kingboard, China

· Nanya, Taiwan

· Chawchung, Taiwan

· Taiyo Ink International (S) Pte. Limited, Singapore

· Jamplan Marketing, Hongkong

Customers :

· ITI India

· LG India

· TVS Electronics Limited, Tumkur, Karnataka

· BPL Group, India

· Kodak India Limited, Bangalore, Karnataka, India

· Bharti Teletek Limited, Ludhiana, Punjab, India

End Users and OEM’s

No. of Employees :

250 (Office 30, Factory 220)

Bankers :

State Bank of India, MID Corporate Loan Administration Unit, Residency Plaza, 3^rd Floor, No. 61, Residency Road, Bangalore – 560048, Karnataka, India

Facilities :

Secured Loans	31.03.2009 Rs. in Millions	31.03.2008 Rs. In Millions
From Banks
Working Capital Loans	87.699	79.371
Term Loan	76.731	74.608
Corporation Loan	0.000	4.050
From Others
Hire Purchase Loan For Vehicles	0.013	0.156
Total	164.443	158.185

Banking Relations :

--

Auditors :

Name :

K P Rao and Company

Chartered Accountant

Address :

Poornima 25, State Bank Road, Bangalore-5460001, Karnataka, India

Tel No.:

91-80-25587385/ 25586814

Fax No.:

91-80-25594661

Email:

kprao@airtelmail.in

kprao@vsnl.com

Associates/Subsidiaries :

· Hosur Coir Foam, Hosur, Tamilnadu

· Technova Tapes, Bangalore, Karnataka

· Mahadevapura, Bangalore – 560 048, Karnataka

· Ascent Telectronics

· Udupa Industries

· Pets Industries, Coimbatore

· Hosur Coir Foam

CAPITAL STRUCTURE

AS ON 29.09.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs.15.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs.15.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		15.000	15.000	15.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		143.437	116.261	108.075
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		158.437	131.261	123.075
LOAN FUNDS
1] Secured Loans		164.443	158.185	133.991
2] Unsecured Loans		56.416	64.627	64.238
TOTAL BORROWING		220.859	222.812	198.229
DEFERRED TAX LIABILITIES		34.332	32.594	19.117
TOTAL		413.628	386.667	340.421
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		208.791	182.660	164.361
Capital work-in-progress		2.749	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	70.286	67.825	68.496
	Sundry Debtors	150.290	194.798	148.100
	Cash & Bank Balances	17.329	20.155	16.047
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	95.575	81.424	56.239
Total Current Assets		333.480	364.202	288.883
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	76.834	119.079	81.233
	Provisions	54.558	41.117	31.590
Total Current Liabilities		131.392	160.195	112.823
Net Current Assets		202.088	204.007	176.060
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		413.628	386.667	340.421

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008	31.03.2007
	SALES
		Income
		Other Income
		TOTAL (A)	604.306	550.617	509.315
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	496.920	445.691	88.849
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		107.386	104.926	420.466
Less	FINANCIAL EXPENSES (D)		23.639	22.570	17.100
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		83.747	82.356	403.366
Less/ Add	DEPRECIATION/ AMORTISATION (F)		26.211	28.162	22.226
	PROFIT BEFORE TAX (E-F) (G)		57.536	54.194	381.140
Less	TAX (I)		15.180	23.004	28.071
	PROFIT AFTER TAX (G-I) (J)		42.356	31.190	353.069
	Earnings Per Share (Rs.)		28.24	65.00	35.00

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	7.01	5.66	10.42
Return on Total Assets (PBT/Total Assets}	(%)	10.61	9.91	17.90
Return on Investment (ROI) (PBT/Networth)		0.36	0.41	0.66
Debt Equity Ratio (Total Liability/Networth)		2.22	2.92	2.53
Current Ratio (Current Asset/Current Liability)		2.54	2.27	2.56

LOCAL AGENCY FURTHER INFORMATION

Operations:

The company has earned a profit of Rs. 42.356 Millions for the year ended 31^st March 2009 after charging Depreciation of Rs. 26.211 Millions. The Gross Receipts of the company stood at Rs. 604.306 Millions as against the previous year amounting to Rs. 550.617 Millions

Future Prospects:

The company is making full effort to meet the competition in all areas in which company is operating. Revenue is expected to improve in the ensuring year since there is good prospectus for business in which the company is operating.

HISTORY

The company was incorporated with the name – RIC Circuits Private Limited and the company name has been changed to the present w.e.f. 7^th April, 2000.

The company is promoted by the young technocrates who have established themselves. This company was taken over from Rao Insulating Company Limited, Bangalore, Karnataka. This unit is located in Industrial Area developed by SIPCOT with all infrastructural facilities.

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	90197640
Corporate identity number of the company	U31200KA1999PTC024700
Name of the company	Ascent Circuits Private Limited
Address of the registered office or of the principal place of business in India of the company	B-13, ITI Ancillary Industrial Estate, Mahadevapura, Whitefield, Bangalore – 560 048, Karnataka, India
Type of charge	Book Debts Movable Property Immovable Property Others
Particular of charge holder	State Bank of India, MID Corporate Loan Administration Unit, Residency Plaza, 3^rd Floor, No. 61, Residency Road, Bangalore – 560048, Karnataka, India
Nature of description of the instrument creating or modifying the charge	Supplemental Agreement of hypothecation of goods and assets for overall increase in limit – from. C.2A:letter reading the grant of individual limit within the overall limits from C-5 and memorandum of deposit for creation of further charge for term loan / overall limit from C-10.
Date of instrument Creating the charge	26.03.2010
Amount secured by the charge	Rs.283.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC : Interest @ 0.50% below SBAR with a minimum 12.25%p.a. Present effective rate 11.25%p.a. TL : Interest @ 3.00% below SBAR, presently 8.75% p.a. Terms of Repayment Working capital facility repayable on demand..  Margin 25% Extent and Operation of the charge Charge extends by way of first charge on all the assets throudhout the period of sanctioned limits.
Short particulars of the property charged	Hypothecation of the whole of the present and future stock of raw materials, stock in process, finished goods, book debts, outstanding monies, receivables, claims, bills and other current assets belonging to the company by way first charge Hypothecation of the whole of the present and future plant and machinery and other equipments belonging to the company by way first charge. Extension of EM on cos immovable properties of land and building situated at Plot No. 99, SIPCOT Industrial Area, Phase – 1, Hosur, Tamil Nadu, land measuring 3.22 acres with buildings thereon. Extension of EM on cos immovable properties of factory land and building situated at Plot No. 111, SIPCOT Industrial Area, Phase – 1, Hosur, Tamil Nadu, land measuring 2.75 acres with buildings thereon.
Date of latest modification prior to the present modification	26.06.2007
Particulars of the present modification	Total limits reduced to Rs. 283.5 Millions. Extension of EM on cos immovable properties of land and building situated at Plot No. 99, SIPCOT Industrial Area, Phase I, Hosur , Tamil Nadu, land measuring 3.22 acres and Plot No. 111, SIPCOT Industrial Area, Phase I, Hosur , Tamil Nadu, land measuring 2.75 acres with buildings thereon. All other terms, conditions and existing securities to continue.

Fixed Assets:

· Land

· Building

· Effluent Treatment Plant

· Furniture

· Plant and Machinery

· Equipments

· Vehicles

· Computers

· Generator

· Electrical Installation

AS PER WEBSTIE

Profile:

Subject is fastest growing PCB manufacturer in India with annual capacity  in excess of 5,00,000 square meters of single side PCBs and 108,000 square meters of Double side / Multiplayer PCBs.

Subject is ISO 9001 : 2000 and TS 16949 certified by UL laboratories Inc.

Subject has attained leadership position in India and also have many reputed companies in the international markets in list of satisfied customers. Market share with most of the customers has grown over the past few years which sums up the strength as a competitive and reliable PCB supplier both in international and domestic market.

As a result Ascent Circuit is exporting more than 55% of production turn over to most demanding markets / MNC’s

in USA and Europe.

This leadership thrust is a result of focus on continuous improvements in quality and capabilities. Ascent Circuits believe in leadership in quality, delivery and costs, which together maximize delivered value to customers.

Environmental Policy

A zero discharge company. All chemical effluents are treated and water is re-cycled. 80% of re-cycled water is used for production after RO filtration process. The balance 20% is evaporated through solar evaporators. 3rd RO plant is under construction to enhance the utilization of treated water up to 95% Platting  and wet processing lines built to European standards with complete enclosures and scrubbers to neutralize fumes and clean air is let out. Solid wastes are disposed as per local government regulations.

ISO-14000 certification by end of December-2008.

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 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.44.99
UK Pound	1	Rs.73.24
Euro	1	Rs.62.80

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		49

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	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
NB		New Business	--

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.