MIRA INFORM REPORT

Report No. :	311477
Report Date :	10.03.2015

IDENTIFICATION DETAILS

Name :	CIPSA TEC INDIA PRIVATE LIMITED (w.e.f. 03.03.2011)
Formerly Known As :	CIPSA-RIC INDIA PRIVATE LIMITED
Registered Office :	Plot No. 7 & 8, S. No. 97, 98 & 121, Hire Halli Industrial Area, Tumkur – 572168, Karnataka
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	25.11.2005
Com. Reg. No.:	08-037765
Capital Investment / Paid-up Capital :	Rs.387.730 Million
CIN No.: [Company Identification No.]	U30007KA2005PTC037765
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AACCC7122N
Legal Form :	Private Limited Liability Company
Line of Business :	The company is primarily engaged in the business of manufacturing of Printed Circuit Boards.
No. of Employees :	400 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 1130000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Reserves of the company seems to be low during 2014. However, trade relations are reported as fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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	CRISIL
Rating	Long term rating : “B”
Rating Explanation	Have high risk of default.
Date	16.07.2014

Rating Agency Name	CRISIL
Rating	Short term rating : “A4”
Rating Explanation	Have minimal degree of safety and carry very high credit risk.
Date	16.07.2014

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 31-03-2014.

LOCATIONS

Registered Office/ Factory:	Plot No. 7 & 8, S. No. 97, 98 & 121, Hire Halli Industrial Area, Tumkur – 572168, Karnataka, India
Tel. No. :	91-816-2243400/ 2243700
Mobile No. :	91-9845344267 (Mr. R. V. Sudhakar)
Fax No. :	91-816-2243700
E-Mail :	pkprabhakar@cipsatec.com venkat@cipsaric.com
Website :	http://www.cipsatec.com
Location :	Owned

DIRECTORS

AS ON 29.09.2014

Name :

Mr. Anil Gupta

Designation :

Director

Address :

No 62/2, Palm Medadows, White Field, Airport Road, Bangalore - 560066, Karnataka, India

Date of Birth/Age :

28.09.1962

Date of Appointment :

25.11.2005

DIN No. :

00101079

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	U72200KA1998PTC024513	CONVERGENT COMMUNICATIONS (INDIA) PRIVATE LIMITED	Nominee director	14/03/2011	11/12/1998	27/04/2012	Active	NO
2	U28998KA1989PTC009813	TUNGABADRA DAIRY PROUDUCTS PRIVATE LIMITED	Director	01/03/2002	01/03/2002	-	Strike off	NO
3	U72900KA2001PTC029813	CONVERGENT WIRELESS COMMUNICATIONS PRIVATE LIMITED	Director	01/03/2002	01/03/2002	30/03/2012	Active	NO
4	U30007KA2005PTC037765	CIPSA TEC INDIA PRIVATE LIMITED	Director	25/11/2005	25/11/2005	-	Active	NO
5	U32109KA2007PTC043071	INDIC EMS ELECTRONICS PRIVATE LIMITED	Whole-time director	21/02/2014	08/06/2007	-	Active	NO
6	U29299KA2007PTC043346	ELSU REPOINTING ASIA PRIVATE LIMITED	Director	10/07/2007	10/07/2007	25/11/2008	Active	NO
7	U74140KA2009PTC051090	HT TRACK TEST INDIA PRIVATE LIMITED	Director	05/10/2009	05/10/2009	06/03/2010	Active	NO
8	U32204KA2011PTC060178	CIRCUIT MAKERS PRIVATE LIMITED	Director	16/01/2012	16/01/2012	-	Active	NO

Name :

Mr. Alok Garg

Designation :

Managing Director

Address :

104, Adarash Palm Meadows-1, Whitefield Road Ramagondanahalli, Bangalore - 560066, Karnataka, India

Date of Birth/Age :

12.08.1959

Date of Appointment :

25.11.2005

PAN No.:

AGJPA0753B

DIN No. :

00224641

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	U30007KA2005PTC037765	CIPSA TEC INDIA PRIVATE LIMITED	Managing director	25/11/2005	25/11/2005	-	Active	NO
2	U32109KA2007PTC043071	INDIC EMS ELECTRONICS PRIVATE LIMITED	Director	08/06/2007	08/06/2007	11/02/2014	Active	NO
3	U29299KA2007PTC043346	ELSU REPOINTING ASIA PRIVATE LIMITED	Director	10/07/2007	10/07/2007	25/11/2008	Active	NO
4	U74140KA2009PTC051090	HT TRACK TEST INDIA PRIVATE LIMITED	Director	05/10/2009	05/10/2009	16/03/2010	Active	NO
5	U32204KA2011PTC060178	CIRCUIT MAKERS PRIVATE LIMITED	Director	26/08/2011	26/08/2011	-	Active	NO

Name :

Soh Yew Hock

Designation :

Nominee Director

Address :

Apt Blk 601, 62 # 06 - 17, Choa Chu Cang Street, 680601, Singapore

Date of Birth/Age :

20.06.1967

Date of Appointment :

30.09.2014

DIN No. :

06842264

Name :

Low Kean Boon

Designation :

Nominee Director

Address :

Apt Blk 698b, 61 #09-322, Hougang Street, 532698, Singapore

Date of Birth/Age :

08.08.1969

Date of Appointment :

30.09.2014

DIN No. :

06842268

Name :

Tan Saik Lian

Designation :

Nominee Director

Address :

31 Amber Road #22-08, Singapore, 439943

Date of Birth/Age :

11.07.1957

Date of Appointment :

30.09.2014

DIN No. :

06844266

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2014

Names of Shareholders	No. of Shares
Anil Gupta	4399504
Alok Garg	4399504
Cipsa Laster SL	687923
Rodriguez Y Michavila Asesories Financieros SL, Spain	432886
Tecnomec SRL	1163282
Circuit Makers (S) Pte. Limited, Singapore	23507471
Evaristo Michavila Subirana	4182446
Total	38773016

AS ON 29.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	77.31
Directors or relatives of Directors	22.69
Total	100.00

BUSINESS DETAILS

Line of Business :

The company is primarily engaged in the business of manufacturing of Printed Circuit Boards.

Products :

Item Code No. (ITC Code)	Product Description
99811294	Services in Electrical

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Available

Imports :

Not Available

Terms :

Not Available

PRODUCTION STATUS : NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Not Available

Customers :

Not Available

No. of Employees :

400 (Approximately)

Bankers :

Corporation Bank, Corporate Banking Branch, Rallaram Building, No. 30, Mission Road, Bangalore - 560027, Karnataka, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG TERM BORROWINGS
Rupee term loans from banks	0.000	55.575
SHORT TERM BORROWINGS
Loans repayable on demand from banks	135.188	141.916
Deferred payment foreign sources [First charge on Inventories and trade Receivables]	37.951	63.866
Other loans and advances, others	120.871	95.261
Total	294.010	356.618

Banking Relations :	--
Auditors :
Name :	S Krishnaswamy and Company Chartered Accountants
Address :	No. 389/1, 7th Main, 42 cross, 5th Block, Jayanagar, Bangalore, Karnataka, India
Income-tax PAN of auditor or auditor's firm :	AAYFS5079B
Associates :	Indic EMS Electronics Private Limited [U32109KA2007PTC043071] Circuit Makers Private Limited [U32204KA2011PTC060178]

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
41,000,000	Equity Shares	Rs.10/- each	Rs. 410.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
38,773,016	Equity Shares	Rs.10/- each	Rs. 387.730 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	387.730	201.761	201.761
(b) Reserves & Surplus	6.200	0.472	(9.246)
(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)	393.930	202.233	192.515
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	55.575	127.069
(b) Deferred tax liabilities (Net)	0.000	8.675	14.293
(c) Other long term liabilities	35.265	35.265	42.075
(d) long-term provisions	2.998	3.264	3.645
Total Non-current Liabilities (3)	38.263	102.779	187.082
(4) Current Liabilities
(a) Short term borrowings	294.010	301.043	159.473
(b) Trade payables	124.124	187.390	246.763
(c) Other current liabilities	97.482	108.884	114.266
(d) Short-term provisions	3.055	2.624	0.000
Total Current Liabilities (4)	518.671	599.941	520.502
TOTAL	950.864	904.953	900.099
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	366.664	424.790	501.995
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.060	0.060	0.060
(c) Deferred tax assets (net)	24.461	0.000	0.000
(d) Long-term Loan and Advances	17.700	13.011	6.071
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	408.885	437.861	508.126
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	277.774	241.965	198.843
(c) Trade receivables	228.178	199.272	157.846
(d) Cash and cash equivalents	24.992	17.320	23.416
(e) Short-term loans and advances	11.035	8.535	11.224
(f) Other current assets	0.000	0.000	0.644
Total Current Assets	541.979	467.092	391.973
TOTAL	950.864	904.953	900.099

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	645.585	590.055	647.619
		Other Income	10.709	9.352	NA
		TOTAL (A)	656.294	599.407	NA
Less	EXPENSES
		TOTAL (B)	683.702	464.748	NA
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			134.659	89.678
Less	FINANCIAL EXPENSES (D)			68.566	72.607
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			66.093	17.071
Less/ Add	DEPRECIATION/ AMORTISATION (F)			61.992	66.171
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(27.408)	4.101	(49.100)
Less	TAX (H)		(33.136)	(5.617)	(3.932)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		5.728	9.718	(45.168)
	EARNINGS IN FOREIGN CURRENCY		305.497	91.000	195.000
	Earnings / (Loss) Per Share (Rs.)		0.15	0.48	(2.24)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	0.89	1.65	(6.97)
Operating Profit Margin (PBIDT/Sales)	(%)	(4.25)	22.82	13.85
Return on Total Assets (PBT/Total Assets}	(%)	(2.96)	0.45	(5.46)
Return on Investment (ROI) (PBT/Networth)		(0.07)	0.02	(0.26)
Debt Equity Ratio (Total Debt/Networth)		0.75	1.76	1.49
Current Ratio (Current Asset/Current Liability)		1.04	0.78	0.75

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	201.761	201.761	387.730
Reserves & Surplus	(9.246)	0.472	6.200
Share Application money pending allotment	0.000	0.000	0.000
Net worth	192.515	202.233	393.930
long-term borrowings	127.069	55.575	0.000
Short term borrowings	159.473	301.043	294.010
Total borrowings	286.542	356.618	294.010
Debt/Equity ratio	1.488	1.763	0.746

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	647.619	590.055	645.585
		(8.889)	9.411

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	647.619	590.055	645.585
Profit/Loss	(45.168)	9.718	5.728
	(6.97%)	1.65%	0.89%

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	Yes
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	No
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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10546881	21/01/2015	350,000.00	CORPORATION BANK	CORPORATE BANKING BRANCH, NO 30,, RALLARAM BUILDI  NG, MISISON ROAD,, BANGALORE, KARNATAKA - 560027,  INDIA	C42362186
2	10535197	17/10/2014	1,867,000.00	CORPORATION BANK	CORPORATE BANKING BRANCH, NO.30, "RALLARAM BUILDI  NG", MISSION ROAD,, BANGALORE, KARNATAKA - 560027,  INDIA	C36132579
3	80004746	17/01/2015 *	460,000,000.00	CORPORATION BANK	CORPORATE BANKING BRANCH, NO 30,, RALLARAM BUILDI  NG, MISISON ROAD,, BANGALORE, KARNATAKA - 560027,  INDIA	C42367722

* Date of charge modification

CHANGE OF ADDRESS

The registered office of the company has been shifted from Plot No. 20, KIADB Industrial Area, Doddaballapura, Bangalore Rural District, Bangalore – 561203, Karnataka, India to the present address w.e.f. 30.11.2009.

GENERAL INFORMATION ABOUT COMPANY

Cipsa Tec India Private Limited (Formerly known as Cipsa-RIC India Private Limited) was incorporated on 25th November 2005. The company is primarily engaged in the business of manufacturing of Printed Circuit Boards single and multi-layered. The company has its office at Tumkur.

FIXED ASSETS

Tangible Assets

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Motor Vehicles

· Office Equipment

· Computer Equipments

· Other Equipments

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.62.62
UK Pound	1	Rs.94.39
Euro	1	Rs.67.96

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	RAS
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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.