MIRA INFORM REPORT

Report Date :

17.09.2013

IDENTIFICATION DETAILS

Name :	MOLEX (INDIA) PRIVATE LIMITED (w.e.f.09.05.2012)
Formerly Known As :	MOLEX INDIA TOOLING PRIVATE LIMITED
Registered Office :	Plot 6A, Sadarmangala Industrial Area, Kadugodi, Bangalore – 560067, Karnataka
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	25.04.2001
Com. Reg. No.:	08-028945
Capital Investment / Paid-up Capital :	Rs. 229.492 Millions
CIN No.: [Company Identification No.]	U27109KA2001PTC028945
TAN No.: [Tax Deduction & Collection Account No.]	BLRM02825E
PAN No.: [Permanent Account No.]	AACCM6091N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Trading of Electronic, Electrical and Fiber Optic Interconnection Products and Systems like Connectors and Harness, Charger Cables 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 6500000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a subsidiary of “Molex International Inc., USA”. It is an established company having a satisfactory track record. The company has seen a better growth in its sales turnover as well as net profitability during 2013. Overall financial position of the company seems to be decent. Trade relations are fair. Business is active. Payment terms are usually correct. In view of strong holding company, the subject 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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/ Sales Office :	Plot 6A, Sadarmangala Industrial Area, Kadugodi, Bangalore – 560067, Karnataka, India
Tel. No.:	91-80-41293550/ 41293500-503/ 41293579
Fax No.:	91-80-41293600/ 1
E-Mail :	girish.kumar@molex.com rgaddam@molex.com
Website :	http://www.molex.com
Factory 1 :	C-7 and 8, GIDC Electronics Estate, “K” Road, Sector – 25, Gandhinagar – 382044, Gujarat, India
Tel No.:	91-79-66737791/ 792
Fax No.:	91-79-66737799
E-Mail :	ishnkar@molex.com ppd@molex.com
Factory 2 :	Gat No 648, Janai Sadan, Pune - Nagar Road, Near Kesnand Cross, Wagholi Tq: Haveli, Pune - 412207, Maharashtra, India
Tel No.:	91-20-27050016/ 17
Fax No.:	91-20-27050018
Factory 3 :	A-74, Sector 4, Noida – 201301, Uttar Pradesh, India
Tel No.:	91-120-2539177/ 79
Fax No.:	91-120-2539162
Sales Offices :	Located at: · Ahmedabad · New Delhi · Pune · Mumbai · Hyderabad · Chennai · Kolkata
Overseas Offices :	Located at: ASIA · China/Hong Kong · India · Indonesia · Japan · Korea · Malaysia · Philippines · Singapore · Taiwan · Thailand · Vietnam MIDDLE EAST · Dubai · Israel · Turkey EUROPE · Austria · Belgium · Benelux · Bulgaria · Czech and Slovak Republics · Denmark · Finland/Baltics · France · Germany · Hungary · Ireland · Italy · Luxembourg · Netherlands · Norway · Poland · Portugal · Romania · Russia - Ukraine - Belarus - Azerbaijan · Serbia, Montenegro, Macedonia, Croatia, Slovenia · Spain · Sweden · Switzerland · U.K. AFRICA · Egypt · South Africa AUSTRALIA SOUTH AMERICA · Argentina, Equador, Colômbia and Venezuela · Brazil · Chile NORTH AMERICA · Canada · Mexico · United States

DIRECTORS

AS ON 29.07.2013

Name :

Mr. Girish Kumar Cherukad

Designation :

Director

Address :

Flat No. 112, A Block, Knight Bridge Apartment, Bangalore – 560037, Karnataka, India

Date of Birth/Age :

01.01.1969

Date of Appointment :

10.09.2012

PAN No.:

AASPG8288J

DIN No.:

02123111

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	U27109KA2001PTC028945	MOLEX (INDIA) PRIVATE LIMITED	Director	10/09/2012	02/02/2007	-	Active	NO
2	U30009GJ1998PTC034430	MOLEX MICRON PRIVATE LIMITED	Director	02/03/2007	02/03/2007	12/12/2008	Amalgamated	NO
3	U31300MH1985PTC037995	MOLEX (INDIA) PRIVATE LIMITED	Director	15/12/2008	15/12/2008	-	Amalgamated	NO

Name :

Liam Mccarthy

Designation :

Director

Address :

17 S Oak St, Hinsdale, Ilinois, 60521, United States of America

Date of Birth/Age :

15.12.1955

Date of Appointment :

10.09.2012

DIN No.:

02330034

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	Company/ LLP Status	Defaulting status
1	U31300MH1985PTC037995	MOLEX (INDIA) PRIVATE LIMITED	Director	01/07/2008	01/07/2008	Amalgamated	NO
2	U27109KA2001PTC028945	MOLEX (INDIA) PRIVATE LIMITED	Director	10/09/2012	11/01/2012	Active	NO

Name :

Mr. David Dickey Johnson

Designation :

Director

Address :

128, Woodstock Avenue, Clarendon Hills, Ilinois, 60514, United States of America

Date of Birth/Age :

31.01.1956

Date of Appointment :

10.09.2012

DIN No.:

02345970

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	Company/ LLP Status	Defaulting status
1	U31300MH1985PTC037995	MOLEX (INDIA) PRIVATE LIMITED	Director	01/07/2008	01/07/2008	Amalgamated	NO
2	U27109KA2001PTC028945	MOLEX (INDIA) PRIVATE LIMITED	Director	10/09/2012	11/01/2012	Active	NO

Name :

Ivan D'souza

Designation :

Director

Address :

No. 76, Shalom, Maruthi Layout, Marathahalli Post, Bangalore – 560037, Karnataka, India

Date of Birth/Age :

22.07.1970

Date of Appointment :

29.07.2013

DIN No.:

05300155

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	U52390KA2012FTC066364	MOD-TAP COMPANY INDIA PRIVATE LIMITED	Director	19/10/2012	19/10/2012	28/06/2013	Active	NO
2	U27109KA2001PTC028945	MOLEX (INDIA) PRIVATE LIMITED	Director	29/07/2013	28/06/2013	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Ramanlal Maganlal Patel
Designation :	Secretary
Address :	Bungalow No. 22, Ajanta Park, Memnagar Road, Ahmedabad – 380052, Gujarat, India
Date of Birth/Age :	07.05.1925
Date of Appointment :	01.07.2012
PAN No.:	AAMPP7255N
Name :	Eric Doesburg
Designation :	Director Operations
Date of Birth/Age :	45 years
Qualification :	MIBS
Experience :	22 years
Name :	Mr. Satish
Designation :	Director, Signal Integrity CBU
Date of Birth/Age :	44 years
Qualification :	MS
Experience :	19 years

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.07.2013

Names of Shareholders	No. of Shares
Molex International Inc, USA	20254139
Molex Inc, USA	2695010
Woodhed Industries Inc., USA	5
Cardell Corporation, USA	10
Daniel Woodhed Company, USA	5
Molex Copper Flex Product Company, USA	5
Total	22949174

AS ON 29.07.2013

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]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Trading of Electronic, Electrical and Fiber Optic Interconnection Products and Systems like Connectors and Harness, Charger Cables etc.

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	Not Available

Banking Relations :	--
Auditors :
Name :	S V Ghatalia and Associates Chartered Accountants
Address :	Bangalore, Karnataka, India
Income-tax PAN of auditor or auditor's firm :	AACFS6921Q
Holding Company :	Molex International Inc., USA
Ultimate Holding Company:	Molex Incorporated, USA
Fellow Subsidiary Company :	· Molex Ireland Limited · Dongguan Molex Interconnect Company Limited · Molex Elektronik GmbH · Molex Japan Company Limited · Molex Korea Company Limited · Molex Premise Networks Sp Zo.o · Molex Singapore Pte Limited · Molex Singapore Global Processing Pte Limited · Molex Taiwan Limited · Molex Interconnect GmbH · Molex Trading Shanghai Limited · Molex Far East-South · Management Pte. Limited · Molex Premise Network Corp · Moltech Polska Sp.Zo.o · Molex Interconnect (Chengdu) Company Limited · Molex Interconnect (Shanghai) Company Limited · Woodhead Canada Limited · Cardell Corporate · Daniel Woodhead Company · Molex Copper Flex Products Limited · Molex Connector Corporation · Woodhead Industries Inc · Molex RF/Microwave Products · Molex Inc., Fibre Optics Division · Molex (Malaysia) Sdn. Bhd. · Molex Premise Networks (Pty) Limited · Molex (Thailand) Limited · Molex Zetronic S.r.l. · Molex (Dalian) Company Limited · Molex Hongkong/ China Limited

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
60,000,000	Equity Shares	Rs. 10/- each	Rs. 600.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
22,949,174	Equity Shares	Rs. 10/- each	Rs. 229.492 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	229.492	229.492	550.000
(b) Reserves & Surplus	1401.141	1292.051	(576.447)
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	1630.633	1521.543	(26.447)
(3) Non-Current Liabilities
(a) long-term borrowings	138.572	130.531	20.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	4.049	0.000	0.000
(d) long-term provisions	41.422	35.968	0.000
Total Non-current Liabilities (3)	184.043	166.499	20.000
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	51.764
(b) Trade payables	371.117	407.072	30.430
(c) Other current liabilities	109.936	58.463	3.738
(d) Short-term provisions	114.321	117.281	0.000
Total Current Liabilities (4)	595.374	582.816	85.932
TOTAL	2410.050	2270.858	79.485
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	284.709	318.010	72.397
(ii) Intangible Assets	0.645	1.151	0.000
(iii) Capital work-in-progress	8.086	5.228	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	73.986	55.419	0.000
(d) Long-term Loan and Advances	527.183	252.632	6.933
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	894.609	632.440	79.330
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	394.364	369.405	0.000
(c) Trade receivables	520.457	485.077	0.000
(d) Cash and cash equivalents	407.091	369.271	0.099
(e) Short-term loans and advances	188.769	409.735	0.056
(f) Other current assets	4.760	4.930	0.000
Total Current Assets	1515.441	1638.418	0.155
TOTAL	2410.050	2270.858	79.485

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income
		Other Income
		TOTAL	2964.460	2655.997	9.352
	EXPENSES
		TOTAL	2801.705	2560.240	10.589
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		250.162	181.393	(1.237)
Less	DEPRECIATION AND FINANCIAL EXPENSES		87.408	85.636	12.935
	PROFIT/ (LOSS) BEFORE TAX		162.754	95.757	(14.171)
Less	TAX		53.663	54.878	0.000
	PROFIT/ (LOSS) AFTER TAX		109.091	40.879	(14.171)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	(562.276)
	BALANCE CARRIED TO THE B/S		NA	NA	(576.447)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1117.603	840.790	0.000
	Earnings/ (Loss) Per Share (Rs.)		4.75	1.78	NA

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	3.68	1.54	(151.53)
Return on Total Assets (PBT/Total Assets}	(%)	6.99	4.33	(17.83)
Return on Investment (ROI) (PBT/Networth)		0.10	0.06	0.54
Debt Equity Ratio (Total Debt/Networth)		0.08	0.09	(2.71)
Current Ratio (Current Asset/Current Liability)		2.55	2.81	0.00

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	No
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	90188331	20/01/1989	2,400,000.00	CANARA BANK	37, MARINES LINES, BOMBAY - 400020, MAHARASHTRA, INDIA	-
2	90185391	07/08/1991 *	3,000,000.00	CANARA BANK	NEW MARINE LINES, BOMBAY - 400020, MAHARASHTRA, INDIA	-
3	90185307	02/03/1988	1,800,000.00	CANARA BANK	KSHAMLAYE 37, NEW MARINE LINES, BOMBAY - 400020, MAHARASHTRA, INDIA	-
4	90185299	08/02/1988	4,500,000.00	BANK OF BARODA	BARODA HOUSE, CP STREET, BOMBAY - 400023, MAHARASHTRA, INDIA	-
5	90185244	02/09/1987	5,000,000.00	CANARA BANK	NEW MARINE LINES, BOMBAY - 400020, MAHARASHTRA, INDIA	-

* Date of charge modification

UNSECURED LOANS

Unsecured Loans	31.03.2013	31.03.2012
	(Rs. In Millions)
LONG-TERM BORROWINGS
Term loans from others	138.572	130.531
Total	138.572	130.531
Footnotes (A) Term loan pertains to external commercial borrowing from Molex International Inc., USA which carries interest at the rate of 6.85% p.a. The interest is payable on quarterly basis and the entire loan is repayable on or before June 15, 2018.

Note:

The registered office of the company has been shifted from 61, Sadarmangala Industrial Area, Kadugodi, Bangalore – 560067, Karnataka, India to the present w.e.f.07.05.2012

CORPORATE INFORMATION

Molex (India) Private Limited (formerly Molex India Tooling Private Limited) is a private limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company is headquartered at Bangalore, India and is engaged in manufacture and trading of electronic, electrical and fiber optic inter-connection products and systems like connectors, harness, cables, etc. The Company caters to both domestic and international markets.

During the year ended March 31, 2012, as further detailed in Note 34 below, pursuant to a Composite Scheme of Arrangement under sections 391 to 394 of the Companies Act, 1956, Molex group s other companies in India were merged with the Company with appointed date of April 1, 2009.

AMALGAMATION OF COMPANIES

In accordance with the composite scheme of amalgamation ("the Scheme"), as approved by the members of the Company on August 17, 2010 and subsequently sanctioned by the Honorable High Court of Bombay, Honorable High Court of Karnataka and Honorable High Court of Gujarat vide their orders dated July 26, 2011, September 13, 2011 and December 27, 2011 respectively ("the Order"), the entire business and undertaking comprising of all the assets and liabilities of erstwhile Molex (India) Private Limited ("Erstwhile MIPL"), Molex Micron Private Limited ("MMPL") and Automotive Connectors India Private Limited ("ACIPL") (herein jointly referred to as "the Transferor Companies") has been transferred to and vested in the Company with effect from the Appointed Date (i.e. April 1, 2009) on a going concern basis. The copy of the last order was filed with the Registrar of Companies on January 10, 2012 ("Effective Date").

Erstwhile MIPL, MMPL and ACIPL were private limited companies incorporated under the Companies Act, 1956. Erstwhile MIPL was engaged in the manufacture and trading of electronic, electrical and fiber optic interconnection products and systems (like connectors, harness, charger cables and others). MMPL was engaged in the manufacture of professional grade connectors, automotive connectors and FMCG connectors, parts and components thereof. ACIPL was engaged in the manufacture and trading of automotive connectors and had discontinued its primary business from December 2005.

During the year ended March 31, 2012, as provided in the Scheme, the assets and liabilities of the Transferor Companies as on the Appointed Date had been recorded by the Company at their existing book values under the Pooling of Interest method. Intercompany balances had been eliminated.

The exchange ratio as provided for in the Scheme required the issuance of:

(a) 50 equity shares of Rs.10 each in the Company to the shareholders of erstwhile MIPL for every 100 equity shares of Rs.10 each held in erstwhile MIPL.

(b) 25 equity shares of Rs.10 each in the Company to the shareholders of MMPL for every 100 equity shares of Rs.10 each held in MMPL.

(c) 500 equity shares of Rs.10 each in the Company to the shareholders of ACIPL for every 100 equity shares of Rs. 100 each held in ACIPL.

Pursuant to this, on March 27, 2012, the Company had issued:

(a) 12,370,000 equity shares of Rs.10 each to the shareholders of erstwhile MIPL, after cancellation of 110,000 equity shares held by erstwhile MIPL as investment in MITPL.

(b) 2,579,174 equity shares of Rs.10 each to the shareholders of MMPL.

(c) 2,500,000 equity shares of Rs.10 each to the shareholders of ACIPL.

CONTINGENT LIABILITIES:

Particulars	31.03.2013	31.03.2012
	(Rs. in Millions)
Demand/notices under dispute for following matters:
Income tax	228.912	227.214
Excise duty	33.678	29.525
Customs duty	26.058	13.040
Service tax	7.355	1.857
Sales tax/value added tax	0.144	0.000
Liability against pending C-Forms	38.785	48.148
Disputed land cases	21.315	21.315
Corporate guarantee	0.000	2.500
Others	0.630	2.400
Total	356.877	345.999
(i) The Company has received income tax demand (including interest and penalties) of Rs. 228.912 Millions (March 31, 2012 - Rs. 227.214 Millions) on account of transfer pricing adjustments for transactions with its associated enterprises and other disallowances for the financial years ended March 31, 2003 to March 31, 2009. The Company has used Transaction Net Margin Method (TNMM) to assess the arm s length price for its transactions with associated enterprises. The Company believes that the above transfer pricing model is in accordance with the provisions of section 92 of the Income Tax Act, 1961. The Company is contesting the aforesaid demands. Further, Molex International Inc., USA, the holding company, has also filed requests with competent authorities in the United States of America to invoke a Mutual Agreement Procedure (MAP), under the US-India Tax Treaty for the years ending March 31, 2005 to March 31, 2008. The matter is still under discussions between the US Tax authorities and India Tax authorities. The management, basis the opinion from its tax advisors, is of the view that the Company s position is likely to be upheld in the appellate process. Pending final outcome, management is of the view that no liability is required to be accrued in the financial statements in this regard for the aforesaid and subsequent assessment years. (ii) Disputed land cases comprises a demand of Rs. 21.315 Millions (March 31, 2012 - Rs. 21.315 Millions), received from KIADB towards transfer of leasehold rights in favour of the Company due to change in shareholding of the Company during the tenure of the lease. The management, basis the opinion from its legal consultants, is of the view that since there were no conditions in the allotment letter issued by KIADB at the time of allotment of the aforementioned land, such claim made by KIADB is not tenable. Accordingly, the Company had filed a writ petition and the matter is pending at the High Court of Karnataka. Pending final outcome, management is of the view that no liability is required to be accrued in the financial statements in this regard. Further, the Range Forest Officer, Government of Karnataka (RFO) has alleged that the land occupied by various industrialists in Kadugodi Bangalore is a forest land and no commercial/industrial activity should be undertaken on such land. Pursuant to a dispute between the RFO and another company, since the land occupied by the Company as allotted by KIADB is also situated in the aforementioned area, the High Court has impleaded the Company and other occupants as respondents in the above dispute. As at March 31, 2013, this matter is sub-judice in the High Court of Karnataka. However, the High Court has held that the entire land is not a forest land. Considering that (a) the land was allotted to the Company by KIADB in 1992; (b) the Company has been undertaking commercial activities from such land; and (c) the favorable order received from the High Court, the management is of the strong view that the claim of RFO is not tenable and accordingly no provision has been made against the same.

FIXED ASSETS:

· Land

· Buildings

· Plant and equipment

· Furniture and fixtures

· Vehicles

· Office equipment

· Computer equipments

· Other equipments

· 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. 62.48
UK Pound	1	Rs. 99.66
Euro	1	Rs. 83.50

INFORMATION DETAILS

Report Prepared by :

BVA

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	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--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.