MIRA INFORM REPORT

Report Date :

15.10.2012

IDENTIFICATION DETAILS

Name :	APPLIED MATERIALS INDIA PRIVATE LIMITED
Registered Office :	Unit 5, 3rd Floor Explorer Block International Technology Park Bangalore – 560066, Karnataka
Country :	India
Financials (as on) :	30.10.2011
Date of Incorporation :	11.07.2003
Capital Investment/ Paid-up Capital:	Rs.0.107 Million
CIN No.: [Company Identification No.]	U74140KA2003FTC032243
TAN No.: [Tax Deduction & Collection Account No.]	BLRA04654G
Legal Form :	Private Limited Liability Company
Line of Business :	Engaged in the business of providing software development and engineering services
No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (56)

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 4901000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of Applied Materials Inc, United states. It is a well established company having good track. Financial position of the company appears to be strong and healthy. It has achieved a healthy growth in its total income earned during 2011. Trade relations are reported as trustworthy. Business is active. Payments are reported to be regular and as per commitment. The company can be considered good for business 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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 :	Unit 5, 3rd Floor Explorer Block International Technology Park Bangalore – 560066, Karnataka, India
Tel. No.:	91-80-66283015
Fax No.:	91-80-41156070
E-Mail :	Dwarakanath_Ramaswamy@amat.com

DIRECTORS

AS ON 02.03.2012

Name :

Mr. Robert Michael Friess

Designation :

Director

Address :

16505 Shady View Lane, Los Gatos, California, 95032, United States Of America

Date of Birth/Age :

17.03.1963

Date of Appointment :

25.09.2006

Din No.:

01120401

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74140KA2003FTC032243	APPLIED MATERIALS INDIA PRIVATE LIMITED	Director	25/09/2006	25/09/2006	-	Active	NO
2	U29219TN2003PTC051764	Applied Materials (Chennai) Private Limited	Director	30/03/2007	30/03/2007	-	Active	NO

Name :

Mr. Dwarakanath

Designation :

Director

Address :

59, 6th Cross, I Main Road, Isro Layout, Bangalore-560 078, Karnataka, India

Date of Birth/Age :

22.05.1969

Date of Appointment :

10.01.2005

Din No.:

01595796

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74140KA2003FTC032243	APPLIED MATERIALS INDIA PRIVATE LIMITED	Director	10/01/2005	10/01/2005	-	Active	NO
2	U29219TN2003PTC051764	Applied Materials (Chennai) Private Limited	Director	30/03/2007	30/03/2007	-	Active	NO

Name :

Mr. Ponnambalam Shanmuganathan

Designation :

Director

Address :

Concorde Silicon Valley, Villa No U225, Near Wipro, Gate 5, Neeladhri Park Road, Electronic City FACE1,

Bangalore-560 100, Karnataka, India

Date of Birth/Age :

02.06.1966

Date of Appointment :

30.04.2008

Din No.:

02087009

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74140KA2003FTC032243	APPLIED MATERIALS INDIA PRIVATE LIMITED	Director	30/04/2008	25/09/2006	-	Active	NO
2	U29219TN2003PTC051764	Applied Materials (Chennai) Private Limited	Director	30/03/2007	30/03/2007	-	Active	NO

Name :

Mr. Richard Li Chung Yun

Designation :

Director

Address :

1480 Aster Court Cupertino California 95014

Date of Birth/Age :

12.12.1967

Date of Appointment :

09.04.2009

Din No.:

02582960

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74140KA2003FTC032243	APPLIED MATERIALS INDIA PRIVATE LIMITED	Director	09/04/2009	09/03/2009	-	Active	NO
2	U29219TN2003PTC051764	Applied Materials (Chennai) Private Limited	Director	24/04/2009	09/03/2009	-	Active	NO

Name :

Mr. Aninda Moitra

Designation :

Director

Address :

109, Gitanjali Apartments,, 1039, Hal 3rd Stage,, Bangalore, 560075, Karnataka, India

Date of Birth/Age :

29.06.1955

Qualification :

B.S.c, MBA

Experience :

16 Years

Date of Appointment :

02.03.2012

Din No.:

03622173

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74140KA2003FTC032243	APPLIED MATERIALS INDIA PRIVATE LIMITED	Director	02/03/2012	19/09/2011	-	Active	NO

Name :

Mr. Madhusudan Vijay Atre

Designation :

Managing Director

Address :

208, Vars Fantasy Apartments NO.33, 1ST Main, Kodi Halli, Hal 2nd Stage Bangalore - 560008 Karnataka India

Date of Birth/Age :

29.06.1955

Qualification:

Ph.D

Experience

23 Years

Date of Appointment :

09.04.2009

Din No.:

01583669

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U72200PN2000PTC134657	LSI RESEARCH (INDIA) PRIVATE LIMITED	Managing director	01/02/2001	01/02/2001	11/04/2008	Amalgamated	NO
2	U85121KA2006NPL040181	India Semiconductor Association	Director	09/08/2006	09/08/2006	26/05/2008	Active	NO
3	U72300PN2002PTC134658	LSI Technologies India Private Limited	Director	29/09/2007	23/05/2007	11/04/2008	Amalgamated	NO
4	U32105KA2005PTC046729	LSI INDIA RESEARCH & DEVELOPMENT PRIVATE LIMITED	Director	06/08/2007	23/05/2007	11/04/2008	Active	NO
5	U74140KA2003FTC032243	APPLIED MATERIALS INDIA PRIVATE LIMITED	Managing director	09/04/2009	30/04/2008	30/08/2011	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 02.03.2012

Names of Shareholders	No. of Shares
Applied Materials, Inc. U.S.A.	10707
Applied Materials Asia Pacific LLC. U.S.A.	1
Total	10708

Equity Share Break up (Percentage of Total Equity)

AS ON 02.03.2012

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100
Total	100

BUSINESS DETAILS

Line of Business :

Engaged in the business of providing software development and engineering services

Product:

Item Code Number	Product Description
85249009.1	Computer software development and engineering service

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	Not Available
Facilities :	-

Banking Relations :	--
Auditors :
Name :	B S R and Company Chartered Accountant
Address :	Maruthi info - tech centre,11-12/1,Inner ring road, Koramangala, Bangalore, Karnataka, India
Pan No.:	AAAFB9852F
Holding Company:	Applied Materials Inc., USA

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.10/- each	Rs.1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10708	Equity Shares	Rs.10/- each	Rs.0.107 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		30.10.2011	31.10.2010	25.09.2009
SHAREHOLDERS FUNDS
1] Share Capital		0.107	0.107	0.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1225.268	1038.532	810.965
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1225.375	1038.639	811.065
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		0.000	0.000	0.000
TOTAL		1225.375	1038.639	811.065
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		362.505	119.135	145.555
Capital work-in-progress		2.216	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		23.486	25.873	25.735
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	759.400	592.979	734.942
	Cash & Bank Balances	89.701	59.296	85.976
	Other Current Assets	43.643	196.003	0.000
	Loans & Advances	430.430	353.039	256.143
Total Current Assets		1323.174	1201.317	1077.061
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	331.761	205.665	254.593
	Other Current Liabilities	30.020	21.896	122.762
	Provisions	124.225	80.125	59.931
Total Current Liabilities		486.006	307.686	437.286
Net Current Assets		837.168	893.631	639.775
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1225.375	1038.639	811.065

PROFIT & LOSS ACCOUNT

	PARTICULARS	30.10.2011	31.10.2010	25.09.2009
	TOTAL INCOME	2251.210	1982.110	1808.010
Less	EXPENSES	1920.720	1725.282	1443.810
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION	330.490	256.828	364.200
Less/ Add	DEPRECIATION/ AMORTISATION	86.897	76.636	83.394
	PROFIT BEFORE TAX	243.593	180.192	280.806
Less	TAX	56.857	5.203	25.626
	PROFIT AFTER TAX	186.736	174.989	255.180
	EARNINGS IN FOREIGN CURRENCY	2208.373	1982.108	-
	Earnings Per Share (Rs.)	174389.92	-	-

KEY RATIOS

PARTICULARS		30.10.2011	31.10.2010	25.09.2009
PAT / Total Income	(%)	8.29	8.83	14.11
Return on Total Assets (PBT/Total Assets}	(%)	14.45	13.65	22.97
Return on Investment (ROI) (PBT/Networth)		0.20	0.17	0.35
Debt Equity Ratio (Total Liability/Networth)		0.40	0.30	0.54
Current Ratio (Current Asset/Current Liability)		2.73	3.90	2.46

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoters background	Yes
No. of Employees	No
Name of Person Contacted	No
Designation of contact person	No
Turnover of firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	No
Capital the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payment Terms	No
Export / Import Details [If Applicable]	No
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	No
Banking Facility Details	No
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	Yes
Date of Birth of Proprietor/Partner/Director, if available	Yes
PAN of Proprietor/Partner/Director, if available	No
Voter ID No of Proprietor/Partner/Director, if available	No
External Agency Rating, if available	No

BACKGROUND

Applied Materials India Private Limited (“the Company”) was incorporated on 11 July 2003 as a private limited company under the Companies Act, 1956 (“the Act”). The Company is a subsidiary of Applied Material Inc., USA. The Company is engaged in the business of providing software development and engineering services including technical product support services and design services to its holding company. The registered office of the Company is at Bangalore, Karnataka. The Company is registered as a 100% export oriented unit (“EOU”) with the Software Technology Park of India and was eligible for a tax holiday up to 31 March 2011.

With effect from 1 November 2004, the financial year of the Company ends on the last Sunday in the month of October each year and accordingly is not a full calendar year.

FINANCIAL HIGHLIGHTS:

During the current period of operation the Company has achieved total income of Rs. 2251.210 Million as compared to Rs. 1982.110 Million of last period. Further the Company has achieved a net profit after tax of Rs. 186.74 Million for the current period as compared to Rs. 174.990 million of last period. The net profit after tax has increased by 6.71% as compared to last period.

BUSINESS OUTLOOK:

The Company is engaged in providing software development in the nature of engineering services and support services provided to its parent company and has a business model of cost plus arrangement with its parent company, and revenue in respect of cost plus markup agreement is recognized based on the total costs, incurred on accrual basis. There is continued traction in the traditional business space with 10.63% increase in headcount and 13.58% increase in revenue as compared to last fiscal year.

There is a continued traction in Solar business in India due to favorable Government policies like National Solar Mission which has a potential to channelize the investment in Solar energy generation sector. The Company provides operation, engineering and support services to Solar business in India for both Sun Fab and Crystalline Silicon products. In addition to above, the company provides operational and engineering support to Glass and Web installation, post-sale support to parent company’s customers in India. However currently most PV cell manufacturers are either shut or operating at minimal capacity. All new projects are on hold.

FUTURE OUTLOOK:

India‘s strong growth fundamentals, investment rates, rapid growth in working population and a rapidly expanding This year witnessed a huge positive change in the dynamics of the global markets for semiconductor

s

Few Regional objectives / focused areas for FY12:

· Launch formal Center’s of Competency to leverage horizontal integration and build on core competency.

· Launch & Execute programs to grow talent and domain expertise.

· Grow / Strengthen IIT Mumbai Strategic relationship and add one additional University.

· Drive adoption of best practices and business processes geared towards continuous improvement.

· Enhanced Focus on engagement of Government of India policies for development of semiconductors and adjacent industry in India.

· Expansion of GIS services to support frontend services, service desks; data center monitoring & incident handling.

· Evaluation of further expansion of facility to address increasing headcount.

India Solar Market Environment:

· End market continues to grow. Grid parity likely to be achieved faster than anticipated.

· Leading cell manufacturers missed solar projects under National Solar Mission, due to competitive bid, but continue to explore and engage with other opportunities.

· Continued Weak Domestic Solar PV manufacturing market due to Global and Local conditions. Policy of no restriction on Thin Film panel import is hurting the domestic TF and c-Si PV manufacturers.

· High interest rates (SBI PLR 15%+) coupled with significant dollar appreciation by more than 17% in the last 6months is impacting the Capex decisions.

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 internationa 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.53.12
UK Pound	1	Rs.85.15
Euro	1	Rs.68.60

INFORMATION DETAILS

Report Prepared by :

BYI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		56

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	-

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