MIRA INFORM REPORT

Report Date :

16.11.2012

IDENTIFICATION DETAILS

Name :	BYD ELECTRONICS INDIA PRIVATE LIMITED

Registered Office :	Developed Plot No. OZ-7, SIPCOT SEZ, Oragadam, Sriperambudur Taluk, Kanchipuram – 602105, Tamilnadu

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	06.03.2007

Com. Reg. No.:	18-062621

Capital Investment / Paid-up Capital :	Rs.2407.187 Millions

CIN No.: [Company Identification No.]	U31909TN2007PTC062621

TAN No.: [Tax Deduction & Collection Account No.]	CHEB06162C

PAN No.: [Permanent Account No.]	AADCB0819N

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer of Plastics and Rubber Components of Mobile Phone Parts.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (26)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 7000000

Status :	Moderate

Payment Behaviour :	Slow

Litigation :	Clear

Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

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 – June 30, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office:	Developed Plot No. OZ-7, SIPCOT SEZ, Oragadam, Sriperambudur Taluk, Kanchipuram – 602105, Tamilnadu, India
Tel No.:	91-44-30558888
Fax No.:	91-44-47108736
E-mail Id :	bydindia@byd.com byd-india@byd.com
Website :	www.byd.com

Factory:	No.D-2, D-8 PT (2), SIPCOT Industrial Park, Irungattukottai, Sriperumbudur Chennai – 602105, Tamil Nadu, India
Tel. No.:	91-44-47108888-1822 / 47100264
Fax No.:	91-44-47108866 / 47100264 / 47108726
E-Mail :	byd-india@byd.com.cn john.simon@byd.com.cn wang.huan@byd.com henry.li@byd.com.cn

DIRECTORS

As on 31.03.2011

Name :	Sun Yizao
Designation :	Managing Director
Address :	5 F An Hua Building, No. 8 Ying Chun Road, Luo Hu District, Shenzhen – 51800, China
Date of Birth/Age :	27.10.1964
Date of Appointment :	19.09.2007
DIN No.:	01682218

Name :	Jingsheng Wu
Designation :	Director
Address :	No.11a, First Unit, 8th Building, Yadi Village, Kuichong, Longgang Dist, Guangdong Province, Shenzhen, 518116, China
Date of Birth/Age :	24.09.1963
Date of Appointment :	25.01.2009
DIN No.:	02586643

Name :	Ke Li
Designation :	Director
Address :	10th Floor, A Building, He Zheng Ming Yuan, Futian District, Guangdong Province, Shenzhen, 518048, China
Date of Birth/Age :	07.04.1970
Date of Appointment :	25.01.2009
DIN No.:	02586649

Name :	Jiang Wang
Designation :	Director
Address :	Balaji Resorts, No.110, Sivanthangal Road, Sripembudur, Kanchipuram 602105.
Date of Birth/Age :	03.08.1971
Date of Appointment :	05.04.2011
DIN No.:	03445519

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2011

Names of Shareholders		No. of Shares

Lead Wealth International Limited, British Virgin Island		24071866
Yizao Sun Representing M/s Lead Wealth International Limited, India		1
		24071867

Equity Share Break up (Percentage of Total Equity)

As on 31.03.2011

Category		Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]		100.00
Total		100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Plastics and Rubber Components of Mobile Phone Parts.

Product

Item Code No.:	Product Description

3807000071	Plastics and Rubber Components of Mobile Phone Parts

Plastics and Rubber Components of Mobile Phone Parts

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Housing	Nos	NA	213,862.022	141.236.249
Keymat	Nos	NA	50.661.907	29,822.519
Metal	Nos	NA	226,188.409	102.264.498

GENERAL INFORMATION

Bankers :

Not Available

Facilities :

(Rs. In Millions)

Unsecured Loan	As on 31.03.2011	As on 31.03.2010

Other external commercial borrowings	* 886.319	898.824
Total	886.319	898.824

Notes:

* External commercial borrowing from Lead Wealth International Limited, British Virgin Island. [due within one year Rs 469.140 Millions previous year Rs. 203.897 Millions)]

Banking Relations :

-----

Auditors :

Name :

S. R. Batliboi and Associates

Chartered Accountants

Address :

TPL House,2nd Floor, No.3, Cenotaph Road, Teynampet, Chennai – 600 018, Tamilnadu India

PAN No.:

AALFS0506L

Holding Company :

· Lead Wealth International Limited, British Virgin Island

Ultimate parent company :

· BYD company Limited, Shenzhen

Holding Company

· Lead Wealth International Limited

Fellow Subsidiary company :

· BYD Precision Manufacture Company Limited, China

· BYD Electronics Hungary Kft, Hungary

· BYD (Huizhou) Company Limited, China

· BYD Hungary Kft, Hungary

· Huizhou Byd Electronics Company Limited, Hungary

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount

25000000	Equity Shares	Rs.100/- each	Rs.2500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

24071867	Equity Shares	Rs.100/- each	Rs. 2407.187 Millions

Note:

Out of the above 24,071,866 (Previous year - 24,071,866) equity shares are held by Lead Wealth International Limited, British Virgin Island, the Holding Company. The ultimate holding company is BYD Company Limited, Shenzhen.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011 (12 Months)	31.03.2010 (12 Months)	31.03.2009 (15 Months)
SHAREHOLDERS FUNDS
1] Share Capital		2407.187	2407.187	2407.187
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(666.397)	(669.707)	(943.322)
NETWORTH		1740.790	1737.480	1463.865
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		886.319	898.824	666.848
TOTAL BORROWING		886.319	898.824	666.848
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		2627.109	2636.304	2130.713

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		3745.696	4069.876	1593.777
Capital work-in-progress		114.423	503.287	2065.462

INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	349.198	461.994	570.652
	Sundry Debtors	513.971	490.027	397.793
	Cash & Bank Balances	233.716	471.681	103.192
	Other Current Assets	8.974	21.480	13.789
	Loans & Advances	45.476	46.760	51.518
Total Current Assets		1151.335	1491.942	1136.944
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2370.713	3405.538	2648.131
	Other Current Liabilities	8.284	21.476	15.979
	Provisions	5.348	1.787	1.360
Total Current Liabilities		2384.345	3428.801	2665.470
Net Current Assets		(1233.010)	(1936.859)	(1528.526)

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		2627.109	2636.304	2130.713

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011 (12 Months)	31.03.2010 (12 Months)	31.03.2009 (15 Months)
	SALES
		Income	3037.934	3815.125	2301.469
		Other Income
		TOTAL	3037.934	3815.125	2301.469

Less	EXPENSES
		Office Expenses	3029.190	3541.316	3157.103
		Administrative Expenses
		Advertising Expenses
		TOTAL	3029.190	3541.316	3157.103

	PROFIT / (LOSS) BEFORE TAX		8.744	273.809	(855.654)

Less	TAX		5.434	0.194	21.705

	PROFIT / (LOSS) AFTER TAX		3.310	273.615	(833.949)

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(669.707)	(943.322)	(109.373)

	BALANCE CARRIED TO THE B/S		666.397	(669.707)	(943.322)

	EARNINGS IN FOREIGN CURRENCY
		Sale of Finished Goods	59.387	43.347	7.728
		Sale of Fixed Assets	135.605	0.000	0.000
		Sale of Raw Material	17.360	0.000	0.000
	TOTAL EARNINGS		212.352	43.347	7.728

	IMPORTS
		Raw Materials	1184.357	2246.112	1904.812
		Capital Goods	205.877	352.129	879.706
	TOTAL IMPORTS		1390.234	2598.241	2784.518

	Earnings / (Loss) Per Share (Rs.)		0.14	11.37	(51.32)

KEY RATIOS

PARTICULARS		31.03.2011 (12 Months)	31.03.2010 (12 Months)	31.03.2009 (15 Months)
PAT / Total Income	(%)	0.11	7.17	(36.24)

Return on Total Assets (PBT/Total Assets}	(%)	0.18	4.92	(31.33)

Return on Investment (ROI) (PBT/Networth)		0.01	0.16	(0.58)

Debt Equity Ratio (Total Liability/Networth)		1.88	2.49	2.28

Current Ratio (Current Asset/Current Liability)		0.48	0.44	0.43

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	No
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

BACKGROUND

Subject was incorporated on March 6, 2007 as a wholly owned subsidiary of Lead Wealth International Limited, British Virgin Island. The Company is engaged in the business of manufacture, assembly and sub - assembly of components for mobile telephones.

FIXED ASSETS:

Tangible Assets:

· Land

· Building

· Plant and Machinery

· Tooling and Fixtures

· Computer Equipments

· Furniture and Fittings

· Vehicles

Intangible Assets:

· Software

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 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.54.96
UK Pound	1	Rs.87.10
Euro	1	Rs.70.03

INFORMATION DETAILS

Report Prepared by :

BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--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		26

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.

MIRA INFORM REPORT

349.198

513.971

233.716

8.974

45.476

1151.335

8.284

5.348

2384.345

(1233.010)

0.11

0.18

0.01

1.88

0.48

Unit