MIRA INFORM REPORT

Report No. :	301757
Report Date :	06.01.2015

IDENTIFICATION DETAILS

Name :	EVERTZ MICROSYSTEMS LTD.
Registered Office :	5292 John Lucas Drive, Burlington, Ontario L7L 5Z9
Country :	Canada
Date of Incorporation :	01.07.2006
Legal Form :	Corporation – Profit
Line of Business :	Subject is engaged in designs, manufactures, and distributes video and audio infrastructure equipment for the production, post-production, transmission, and distribution of television content
No. of Employee :	380

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
Canada	A1	A1

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

CANADA ECONOMIC OVERVIEW

As a high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and high living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US, its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian merchandise exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, uranium, and electric power. Given its abundant natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economic crisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada's major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the financial sector's tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010-13 and plans to balance the budget by 2015. In addition, the country's petroleum sector is rapidly expanding, because Alberta's oil sands significantly boosted Canada's proven oil reserves. Canada now ranks third in the world in proved oil reserves behind Saudi Arabia and Venezuela.

Source : CIA

Company name & address

Company name: EVERTZ MICROSYSTEMS LTD.

Address: 5292 John Lucas Drive, Burlington, Ontario L7L 5Z9 - Canada

Telephone: +1 905-335-3700

Fax: +1 905-335-3573

Website: www.evertz.com

Company details

Corporate ID#: 001703467

State: Ontario

Judicial form: Corporation - Profit

Date incorporated: 07-01-2006

Date founded: 07-29-1966

Stock: -

Market cap.: -

Name of manager: Romolo MAGARELLI

ACTIVITIES & OPERATIONS

IST

Business:

Evertz Microsystems Limited designs, manufactures, and distributes video and audio infrastructure equipment for the production, post-production, transmission, and distribution of television content in the United States, Canada, and internationally.

It offers routers, including video, audio, data/LTC/tally, and fiber/RF routers, as well as bypass and auto changeover systems, unified control systems, and router panels; infrastructure products comprising distribution amplifiers, conversion systems, frame synchronizers, audio/data embedders and de-embedders, audio processing systems, video/audio delay systems, and closed captioning systems; and multiviewers.

The company also offers RF products, including antennas, routers and switches, splitters and distribution amplifiers, demodulators, fiber transport systems, power inserters, and power amplifiers; DTV/compression products comprising encoders and decoders, modulators, demodulators, stat muxing products, multiplexing products, scrambling products, IP/ASI encapsulation and processing products, media IP gateways, transport stream monitoring systems, monitoring systems, and ASI over fiber transport systems; master clock/SPG systems, slave clocks, test/reference generators, analog time code systems, and digital time code systems; and production and post-production equipment.

In addition, it offers master control switchers, keyers, and media and logo inserters; video, audio/data/RF, SONET/SDH, and network transport systems, as well as CWDM/DWDM multiplexors, SFP based solutions, and fiber routers; monitoring, control, and network management systems; video replay systems; workflow/media asset management systems; and multiframe and high density modules.

The company sells its products to content creators, broadcasters, specialty channels, television service providers, and multi-system operators.

Evertz Microsystems Limited was founded in 1966 and is headquartered in Burlington, Canada.

The Company exports worldwide.

Staff: 380

Operations & branches:

At the headquarters, we find a factory, warehouse and office, owned.

SHAREHOLDERS & MANAGERS

Shareholders:

EVERTZ TECHNOLOGIES LIMITED

5292 John Lucas Drive, Burlington, Ontario L7L 5Z9 – Canada

Incorporated on 05-28-1981

Federal Corporation ID# 1150393

The Company is listed with the Toronto Stock Exchange under symbol ET.

Last financials appears as follow:

Currency in Millions of Canadian Dollars	As of:	Apr 30 2011 CAD	Apr 30 2012 CAD	Apr 30 2013 CAD	Apr 30 2014 CAD
TOTAL REVENUES		309.3	293.4	316.3	325.5
NET INCOME		77.7	59.5	64.6	63.1

Management:

Romolo MAGARELLI is the President, Director and CEO.

He was employed at Leitch Corporation from 1991 to 1997 and served as Senior Manager of Hardware Development.

Mr. Magarelli has more than 15 years of high technology design and manufacturing experience.

He has been the President, Director and CEO of Evertz Technologies Ltd.

since 1997.

Mr. Magarelli is a professional engineer and holds a Bachelor of Electrical Engineering degree from the University of Waterloo and is a Member of Professional Engineers of Ontario.

Anthony Ronald GRIDLEY is the CFO.

They are also involved in the parent company.

FINANCIALS

In Canada, privately held corporations are not required to publish any financials.

On a direct call, a financial assistant controlled the present report.

Sales declared for year 2013 is in the range of CAD 80,000,000=

The business is profitable.

Banks: Royal Bank of Canada

Scotia Bank

...

LEGAL FILINGS

Legal filings & complaints:

As of today date, there is no legal filing pending with the Courts.

Secured debts summary: Several

COMPANY CREDIT HISTORY

Domestic credit history:

National Credit Bureaus gave a correct credit rating.

According to our credit analysts, during the last 6 months, domestic payments were made with an average of 2 to 5 days beyond terms.

International credit history:

Payments of imports are currently made with an average of 2 to 5 days beyond terms.

Other comments:

The Company maintains its business.

The Company is in good standing.

This means that all local and federal taxes were paid on due date.

The risk is low.

Our opinion:

A business connection may be conducted.

However, we suggest you a report on the parent company.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.38
UK Pound	1	Rs.96.84
Euro	1	Rs.75.66

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	DPT

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	--

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%)

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.