MIRA INFORM REPORT

Report Date :

22.04.2013

IDENTIFICATION DETAILS

Name :	HI-Q ELECTRONICS PRIVATE LIMITED
Registered Office :	# 606, 2^nd Floor, Sony World Building, 80 Feet Road, Koramangala, 4^th Block, Bangalore - 560034, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	21.02.1983
Com. Reg. No.:	08-005174
Capital Investment / Paid-up Capital :	Rs. 20.998 Millions
CIN No.: [Company Identification No.]	U32104KA1983PTC005174
TAN No.: [Tax Deduction & Collection Account No.]	BLRH00102E
PAN No.: [Permanent Account No.]	AAACH3509C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Trader of all types of Printed Circuit Boards, Picture Tubes, Electrical and Electronic Goods, etc.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 940000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears slight dip in the turnover during 2012 but the profits have improved. Trade relations are reported as decent. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for 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 – 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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long term rating : BBB-
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	December 2012

Rating Agency Name	ICRA
Rating	Short term rating : A3
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	December 2012

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 :	# 606, 2^nd Floor, Sony World Building, 80 Feet Road, Koramangala, 4^th Block, Bangalore - 560034, Karnataka, India
Tel. No.:	91-80-40310800/ 25532892
Fax No.:	91-80-25520348/ 25532923
E-Mail :	sendyl@hiqelectronics.com sales@hiqelectronics.com
Website :	www.hiqelectronics.com
Area :	2000 sq. ft.
Location :	Rented
Factory 1 :	9, Industrial Estate, Hosur - 635109, Tamilnadu, India
Tel. No.:	91-4344-242911
Fax No.:	91-4344-245014

DIRECTORS

AS ON 24.09.2012

Name :	Sengoda Gounder Venkatachalam
Designation :	Director
Address :	323, 5^th Main, Koramangala, I Block, Bangalore - 560034, Karnataka, India
Date of Birth/Age :	10.10.1933
Date of Appointment :	21.02.1983
DIN No.:	01808692
Name :	Venkatachalam Sendyl
Designation :	Director
Address :	No. 48, 8^th Main Road, 3^rd Cross, Koramangala, 4^th Block, Bangalore - 560034, Karnataka, India
Date of Birth/Age :	13.11.1963
Date of Appointment :	21.02.1983
DIN No.:	01808732

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 24.09.2012

Names of Shareholders	No. of Shares
S. Venkatachalam	141413
V. Sendyl	68571
Total	209984

AS ON 24.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Trader of all types of Printed Circuit Boards, Picture Tubes, Electrical and Electronic Goods, etc.

Products :

ITC Code	Product Descriptions
367902001	Printed Circuit Boards

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity- DGTD	Installed Capacity	Actual Production
Printed Circuit Boards	Sq.mtrs.	20000	20000	333508 Nos.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Overseas Branch, LHO Compound, St Marks Road, Bangalore - 560001, Karnataka, India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term Loans from Banks
State Bank of India TL 108	0.000	3.421
State Bank of India TL 109	0.000	3.915
State Bank of India TL 110	5.926	15.198
State Bank of India TL 111	25.200	40.636
State Bank of India TL 112	12.439	3.998
Cash credit with State Bank of India	26.527	23.010
Total	70.092	90.178
Note: Term loan from Banks are secured by Hypothecation of Plant and Machinery and by Equitable mortgage of Factory land and building and second charge over Company’s current assets. All the loans are personally guaranteed by Directors. All the Term loan are repayable in 60 monthly instalments. There has been no continuing default as on Balance Sheet date in repayment of loans and interest. Principal due within 1 year Rs.5.926 Millions, Rs.12.600 Millions & Rs.0.480 Million respectively for Term loan no.10, 11& 12. Short Term borrowings from Banks are secured by charge over Company’s Receivables & Inventories, Equitable mortgage of factory land and Building and second charge on Company’s Current assets. The said Cash credit facility has been guaranteed by personal Guarantee of both the Directors of the Company. There has been no default as on Balance sheet date in repayment of interest and facility.

Banking Relations :	--
Auditors :
Name :	Panth and Company Chartered Accountants
Address :	No.16/3, 2nd Cross, Gupta Layout, South End Road, Basavanagudi, Bangalore – 560004, Karnataka, India
Income-tax PAN of auditor or auditor's firm :	AAHFP3672Q

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
395,000	Equity Shares	Rs. 100/- each	Rs. 39.500 Millions
5,000	Preference Shares	Rs. 100/- each	Rs. 0.500 Million
	Total		Rs. 40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
209,984	Equity Shares	Rs. 100/- each	Rs. 20.998 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		20.998	20.998	20.998
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		214.150	201.240	199.259
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		235.148	222.238	220.257
LOAN FUNDS
1] Secured Loans		70.092	90.178	121.546
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		70.092	90.178	121.546
DEFERRED TAX LIABILITIES		9.907	12.430	15.736
TOTAL		315.147	324.846	357.539
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		234.287	257.777	280.527
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.442
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	29.634	26.561	23.979
	Sundry Debtors	39.834	47.543	44.415
	Cash & Bank Balances	1.794	3.057	0.767
	Other Current Assets	9.423	9.373	0.000
	Loans & Advances	29.329	25.231	33.835
Total Current Assets		110.014	111.765	102.996
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2.208	19.792	13.565
	Other Current Liabilities	5.125	11.323	5.082
	Provisions	21.821	13.581	8.028
Total Current Liabilities		29.154	44.696	26.675
Net Current Assets		80.860	67.069	76.321
MISCELLANEOUS EXPENSES		0.000	0.000	0.249
TOTAL		315.147	324.846	357.539

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Gross Turnover	250.351	258.873	228.061
		Other Income	N.A.	N.A.	N.A.
		TOTAL	N.A.	N.A.	N.A.
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	N.A.	N.A.	N.A.
	PROFIT BEFORE TAX		39.164	22.568	22.816
Less	TAX		13.608	7.734	8.692
	PROFIT AFTER TAX		25.556	14.834	14.124
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		135.414	133.816	119.491
Less	PREVIOUS YEAR EXPENSE		0.000	0.000	0.812
Less	APPROPRIATIONS
		Transfer to General Reserve	2.556	1.483	0.000
		Dividend	10.079	10.079	0.000
		Tax on Dividend	1.635	1.674	0.000
	BALANCE CARRIED TO THE B/S		146.700	135.414	133.816
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	81.910	79.782	67.589
	IMPORTS
		Raw Materials	49.915	66.071	51.945
		Capital Goods	11.446	14.910	65.095
		Spare Parts/ Consumables	15.463	14.846	93.947
	TOTAL IMPORTS		76.824	95.827	210.987
	Earnings Per Share (Rs.)		121.71	70.64	68.22

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Return on Total Assets (PBT/Total Assets}	(%)	11.37	6.11	5.95
Return on Investment (ROI) (PBT/Networth)		0.17	0.10	0.10
Debt Equity Ratio (Total Debt/Networth)		0.30	0.41	0.55
Current Ratio (Current Asset/Current Liability)		3.77	2.50	3.86

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	No
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	Yes
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	Yes
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	Yes

CONTINGENT LIABILITIES:

Personal guarantee issued by Directors on behalf of the Company Rs.167.500 Millions (Prev. Yr. Rs. 105.465 Millions)

FIXED ASSETS

Ø Land

Ø Building Factory

Ø Other Buildings

Ø Plant and Equipment

Ø Furniture and Fixtures

Ø Vehicles

Ø Computers

Ø Office Equipment

Ø Electrical Installation

Ø Pollution Control Equipments

Ø Computer 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. 54.03
UK Pound	1	Rs. 82.43
Euro	1	Rs. 70.49

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
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	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.