MIRA INFORM REPORT

Report Date :

14-11-2006

IDENTIFICATION DETAILS

Name :	SE FORGE – NEW DIVISION OF SUZLON ENERGY LIMITED
Registered Office :	‘Suzlon House’, 5, Shrimali Society, Near Shree Krishna Complex, Navrangpura, Ahmedabad - 380009, Gujarat
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	10.04.1995
Com. Reg. No.:	04-25447
CIN No.: [Company Identification No.]	L40100GJ1995PLC025447
IEC No.	2495002021
TAN No.: [Tax Deduction & Collection Account No.]	AMMS03088B
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the stock exchanges.
Line of Business :	Manufacturer, Importer and Exporter of Wind Mills, Wind Turbines and Generators.

RATING & COMMENTS

MIRA’s Rating :

A

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 100000000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and progressive company. The company is controlled, financed and managed by Tanti family whose resources are of good value. General financial position is satisfactory. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	‘ Suzlon House’, 5, Shrimali Society, Near Shri Krishna Complex, Navrangpura, Ahmedabad-380009, Gujarat, India
Tel. No.:	91-79-26471100
Fax No.:	91-79-26471200 / 26565540
E-Mail :	Khemal@suzlon.com /vkirti@suzlon.com
Website :	http://www.suzlon.com
Area :	361.33 sq.mtrs.
Premises :	Owned
	Note: The Company’s registered office situated at Sahajanand Building, Navrangpura, and Ahmedabad – 380009 has been shifted to the above address.
Head / Corporate Office :	2^nd & 5^th Floor, Godrej Millennium, 9, Koregaon Park Road, Pune – 411001, Maharashtra, India
Tel. No.:	91-20-26202000/24022000/24015760/24022204
Fax No.:	91-20-24022100
E-Mail :	vkirti@suzlon.com
Area :	20137 sq.mtrs.
Location :	Owned
Factory 1 :	Plot No. 77/13, Opposite G.D.D.I.D.C. Office, Malala, Diu – 362520, Union Territory
Tel. No.:	91-2875-252541 / 5242
Fax No.:	91-2875-252281
Area :	3000 sq.mtrs
Factory 2 :	Survey No. 306/1 and 306/3, Opposite Carrier Aircomp Limited, Near Panchal Industrial Estate, Bhimpore, Nani Daman – 396210, Union Territory.
Area :	6,400 sq.mtrs
Factory 3 :	Plot No. H-24/25, Mahatma Gandhi Udhyog Nagar, Near Water Tank, Dabhel, Nani Daman – 396210, Union Territory
Tel No :	91-260-2253673/2253674
Factory 4 :	Near Check Post, Bhensrole Road, Dunetha, Nani Daman – 396210, Union Territory
Factory 5 :	Thiruvandarkoil, Opposite Whirlpool India Limited, Nannadipet Commune, Pondicherry - 605107
Factory 6 :	Survey No. 588, Paddhar (Village),Taluka Bhuj, District Kutch, Gujrat-370105
Factory 7 :	Survey No: 282, Chhadvel (Korde), Sakri, Dhule-424305
Factory 8 :	Survey No. 42/ 2 & 3, 54, 1 to 8, Bhenslore Road, Dunetha, Daman-396 210, Union Territory
Factory 9 :	Plot No. 50, 51, 52, 54, 755, Village, Manjusar, Taluka Salvli, District-Baroda-391775
Factory 10 :	Survey No. 574, 59, Thiruvandarkoil, Thribhuvani Road, Pondicherry-605107
Branches :	1207, Raheja Centre, Free Press Journal Marg, Nariman Point, Mumbai, Maharashtra, India Area: 3000 sq. ft. Sahjanand, 1^st Floor, C. G. Road, Navrangpura, Ahmedabad, Gujarat, India Tel. No.: 91-79-26449630 / 551 / 26448547 / 5731 Fax No.: 91-79-26565540 E-Mail: ho@suzlon.com suzlon@ad1.vsnl.net.in 8-2, Bushara House, 46, Nawroji Road, Chetpat, Chennai – 600 031, Tamil Nadu, India Tel. No. 91-44-26429721 Fax No. 91-44-26412780 23, Graficon Arcade, 38, Sassoon Road, Pune – 411 001, Maharashtra, India 1/4, Amrur Commercial Center, Near Astron Cinema, Sardarnar Main Road, Rajkot – 360 001, Gujarat, India Tel. No. 91-281-2473445 / 2473446 Fax No. 91-281-2474562 IL & FS Financial Centre, 6^th Floor, East Quadrant, Plot no 22, ‘G’ Block, Bandra-Kurla Complex, Bandra (East), Mumbai-400051 Village Thiruvandarkoil, Tehsil Villianur, District-Mannadipet, Pondicherry-605107 Unit No. 104 & 106, First Floor, Delta Wines, Raheja Towers , 177, Anna Salai, Chennai-600002 101A, 1^st & 8^th Floor, Prestige Towers, No. 100, Field Marshal K. M. Carriappa Road [Residency Road], Bangalore – 560025, Karnataka, India Room No. 2325 No. 1 Block, China World Trade Centre, Jianguomenwai Street, Choyang, Beljing China-100004 Manufacturign Unit-Survey Nos-476 to 479, Chhani, Vadodara, Baroda-391741 Eros Corporate Towers, 9th Floor, Nehru Place, New Delhi - 110 019 1st Floor, "Neelkanth", 1-Bhavani Singh Road, Opposite Nehru Sahkar Bhavan, C-Scheme, Jaipur - 302 001 Plot No. 108/4, First & Second, Floor (East Wing), Srivari Gokul Towers' Race Course Road, Coimbatore - 641 018, Tamilnadu, India 1st Floor, Uma Enclave, Flat No.1B, Road No. 9, Hyderabad - 500 034, Andhra Pradesh, India 4th Floor, Kankaria Estate, 6, Little Russel Street, Kolkata - 700 071, West Bengal, India 412/413, Centre Point, 4th Floor, R.C. Dutta Road, Alkapuri Vadodara - 390 005, Gujarat, India 103, Sapphire Twins Building, 1st Floor, Office No. 102 & 103 Plot No. 16-17, A. B. Road, PU-3, Scheme No. 54, Indore - 452 008 T.C.1 5/610(4), Kumari Nilayam, Udarasiromani Road, Thiruvanathpuram - 695 010 206, 2nd Floor, Thakorbhai Mithaiwala Market, Sahara Gate Crossing, Ring Road, Surat - 395 003, Gujarat 5^th & 6^th Floor, Viscos Towers, Avinashi Road, Coimbatore – 641019, Tamilnadu, India

DIRECTORS

Name	Mr. Tulsibhai Ranchodbhai Tanti
Designation	Chairman and Managing Director
Qualification	B.Com, Diploma in Mechanical Engineering
Address	C-501, Satellite Towers, Orion, Mundhwa, Pune-411036
Date of Birth	02.02.1958
Date of Appointment	10^th April 1995
Email	ttulsi@suzlon.com
Other Directorship	Group Chairman of Suzlon Group of Companies viz. Suzlon Developers Private Limited, Sarjan Fealities Private Limited, AE Rotor Holding BV, Suzlon Wind Energy Corporation, Suzlon Windfarm Services Private Limited, SNS Textiles Limited, Suzlon Energy GmbH, Suzlon Green Power Limited
Name	Mr. Girishbhai Ranchodbhai Tanti
Designation	Director (International Operation)
Address	C-401, Satellite Towers, Orion, Mundhwa, Pune-411036
Date of Birth	08.02.1970
Qualification	B. E. (Elec.), Management Graduate from Cardiff, U. K.
Experience	10 years
Name	Mr. Balrajsinh A. Parmar
Designation	Director (Projects)
Address	301, Samrajya, Near Manav Mandir, Ahmedabad – 380 052, Gujarat, India
Date of Birth	28.05.1957
Date of Appointment	4^th December 1995
Name	Mr. Vinodbhai Ranchodbhai Tanti
Designation	Director (Operation)
Address	15, Amrakadamb, Ramdevnagar, Satellite, Ahmedabad - 380 054, Gujarat, India
Date of Birth	29.06.1952
Date of Appointment	10^th April 1995
Name	Mr. Ajay Relan
Designation	Director (Nominee Citycorp International Finance Corporation Inc.)
Address	Citi Bank N. A. Jeevan Vihar, Sansad Marg, New Delhi-110001
Date of Birth/Age :	53 Years
Qualification	M B A from IIM-A; B. A. Honours (Economics) from St. Stephen’s College, Delhi
Name	Mr. Pradip Kumar Khaitan
Designation	Director
Address	B-103, Rai Enclave, 7/1A, Sunny Park, Kolkata-700019
Date of Birth/Age :	65 Years
Qualification	B. Com., L. L. B. Attorney-at-law
Name	Mr. Ashish Dhawan
Designation	Director (Nominee Chrys Capital III, LLC, Mauritius)
Address	55A, Jor Bagh, New Delhi-110001
Date of Birth	37 Years
Qualification	M. B. A. from Harvard University and dual bachelors degree (B.S./B.A.) in applied mathematics and economics
Name	Vidhyanathan Raghuraman
Designation	Director
Address	20, Kallol Apartments, I P Extension, Pratap Ganj, Delhi-110095
Date of Birth	63 years
Qualification	M. Tech (Chemical Engineering)
OTHER PERSONNEL
Mr. Hemal A. Kanuga	Company Secretary
Mr. Asit Badve	Vice President (Human Resource and Administration)
Mr. P. C. Mehta	General Manager (Purchase)
Mr. Kirit Vagadia	General Manager (Finance)
Mr. B. N. Shah	General Manager (Marketing)
Mr. VKR Kutty	General Manager (Foreign Trade)
Mr. R. Sridharan	General Manager (Works)

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters (including persons acting in concert)	200642400	69.78
Foreign Institutional Investors	63390169	22.05
Non-resident Indians / Overseas Corporate Bodies	1795775	0.62
Mutual funds, Financial Institutions and Banks	1569914	0.55
Private corporate bodies	936397	0.33
Resident Indians	19196725	6.67
TOTAL	287531380	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Importer and Exporter of Wind Mills, Wind Turbines and Generators.
Products :	v Wind Energy, Solar Energy System & Assembling v Operation & Maintenance Contract v Electricity Generators
Brand Names :	‘Suzlon’
Exports to :	USA, Italy, Australia, China, Germany and Middle East
Imports from :	Germany, Denmark, China
Terms :
Selling :	Cash and Credit
Purchasing :	Cash (30 days), Credit (30 days) and L/C

PRODUCTION STATUS

Product	Units	Actual Production
Wind Turbine Generators Upto 1 MW	Nos.	83.00
Wind Turbine Generators Above 1MW & Upto 2 MW	Nos.	740.00
Wind Turbine Generators Above 2 MW	Nos.	8.00
Blades	Nos.	2460.00

GENERAL INFORMATION

Suppliers :

Sudwind GmbH, Germany

L. M. Glassfibre, India

Siemens, India

Winoray, Germany

Mita Tecknick, Germany

Mukesh Engineers, India

Customers :

Bajaj Auto Limited

Tata Group

Maharashtra Seamless Limited

Manickchand Group

Ajanta Group

Dhariwala Group

Ghodavat Group

Verroc Group

Trade Terms :

Flender, Germany

ASVG, Germany

L. M. Glasfibre

Siemens

No. of Employees :

3200

Bankers :

State Bank of India

Specialized Commercial Branch, Neptune Tower Annexe, Gandhigram,

Asram Road, Ahmedabad.

UTI Bank of India

Ground Floor, Sterling Plaza, 1262/B, J.M. Road, Pune

IDBI Bank Limited (Cons. Leader)

Dyaneshwar Paduka Chowk, F.C. Road, Pune

IndusInd Bank Limited

Bank of Maharashtra

1183-A, Sadashiv Vilas, F.C. Road, Pune

Standard Chartered Bank

90, M.G. Road, Fort, Mumbai

Deustsche Bank AG.

DB House, Hazarimal Somani Marg, Fort, Mumbai

State Bank of Bikaner & Jaipur

Laxmi Road, Pune

ING Vysya Bank Limited

F.C. Road, Pune

State Bank of Indore

Mittal Court, D Wing, Ground Floor, Nariman Point, Mumbai

Punjab National Bank

International Banking Branch, DCM Building, 8^th Floor, Barakhambha Road, New Delhi

Indian Overseas Bank

7, Wonderland Building, M. G. Road, Pune

State Bank of Patiala

Bank of Baroda

2, Moledina Road, Camp, Pune

Citi Bank

Citibank N. A. Parmar House, 2413, East Street, Camp, Pune

HDFC Bank Limited

UTI Bank Limited

Facilities :

	As on 31.03.2006 [Rupees in Millions]
SECURED LOANS
Term Loans :
From Banks	252.800
From Others	1373.100
Working Capital facilities from banks and financial institutions:
Rupee Loans	1140.200

Banking Relations :	Satisfactory
Auditors :	v Sanjay N. Kapadia & Company Chartered Accountants 111, Nalanda Enclave, Pritamnagar, Ellisbridge, Ahmedabad – 380006, Gujarat v S. R. Batliboi and Company Chartered Accountants The Metropole, F-1, 1^st Floor, Bund Garden Road, Pune- 411001
Associates :	v Suzlon Developers Private Limited v Sarjan Realities Private Limited v Suzlon Green Power Limited v SNS Textiles Limited v Suzlon Wind Farm Services Limited Godrej Millennium, 5^th Floor,9, Koreaon park Road, Pune-411001 Providing O& M services for ETGs v Suzlon Structures Private Limited ‘Suzlon”5, Shrimali Society, near Shri Krishna Complex, Navarangpura, Ahmedabad-380009 Manufacturing Tubular Tower v Suzlon Generators Private Limited Godrej Millennium, 5^th Floor,9, Koreaon park Road, Pune-411001 Manufacturing generators v Sarjan Infrastructure Finance Limited IL & FS Financial Centre, 6^th Floor, East Quadrant, Plot no 22, ‘G’ Block, Bandra-Kurla Complex, Bandra (East), Mumbai-400051 Financing infrastructure activities v Suzlon Infrastructure Limited Godrej Millennim, 5^th Floor, 9, Koregaon Park Road, Pune-411001 Civil work, erection, installation and commissioning of WTGs v Sarjan Realities Limited 285/10, Koregaon Park, Behind Singh Motors, Near Hotel Gulmohar, Jupiter, Pune-411001 Acquiring land for setting up wind-farms
Subsidiaries :	AE-Rotor Holding B.V., Netherlands AE-Totor Techniek B.V., Netherlands Suzlon Energy B.V., Netherlands Suzlon Wind Energy Corporation, U.S.A. Suzlon Wind Farm Services Limited, U.S.A. Cannon Ball Wind Energy Park – I, LLC, U.S.A. Suzlon Energy GmbH, Germany Suzlon Energy Australia Pty Limited, Australia Suzlon Energy A/S Suzlon Structures Private Limited Suzlon Towers and Structures Limited (Formerly Suzlon Green Power Limited) Suzlon Windkraft GmbH* (Formerly Constellation GmbH) Suzlon Generators Private Limited Windpark Olsdorf WATT GmbH & Co KG Suzlon Windpark Management GmbH Suzlon Rotor Corporation Suzlon Power Infrastructure Private Limited Suzlon Energy (Tianjin) Limited SE Drive Techniek GmbH Suzlon Gujarat Wind Park Limited Suzlon Engitech Private Limited (Formerly Sarjan Engitech Private Limited) Suzlon Energy Limited, Mauritius*
Membership	Confederation of Indian Industry

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
330000000	Equity Shares	Rs. 10	Rs. 3300.000 millions
11500000	Preference shares	Rs. 100	Rs.1150.000 millions
		Total	Rs. 4450.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
287531380	Equity Shares	Rs. 10	Rs. 2875.300 millions
1500000	Preference Shares	Rs. 100	Rs. 150.000 millions
		Grand Total	Rs. 3025.300 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		3025.300	2019.23	393.48
2] Employee stock options		103.600	0.000	0.000
3] Reserves & Surplus		25093.600	7276.49	3774.80
TOTAL		28222.500	9295.72	4168.28
LOAN FUNDS
1] Secured Loans		2766.100	2854.57	1723.76
2] Unsecured Loans		587.600	370.83	482.83
TOTAL BORROWING		3353.700	3225.40	2206.59
Deferred Tax Liabilities		0.000	0.000	0.000
TOTAL		31576.200	12521.120	6374.87
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2956.800	1602.70	1353.14
Capital work-in-progress		762.500	179.28	124.27
INVESTMENTS		2927.400	1260.08	533.25
DEFERREX TAX ASSETS		580.000	276.06	105.30
CURRENT ASSETS, LOANS & ADVANCES
Inventories		11044.900	4945.87	2017.12
Sundry Debtors		15839.100	6763.35	3172.94
Cash & Bank Balances		3162.400	881.99	603.60
Loans & Advances		6911.300	3759.82	2267.80
Other Current Assets		0.000	0.000	0.000
Total Current Assets		36957.700	16351.030	8061.460
Less :
Current Liabilities & Provisions
	Current Liabilities	8583.200	5291.88	2998.85
	Provisions	4025.000	1856.15	804.32
Total Current Liabilities		12608.200	7148.030	3803.170
Net Current Assets		24349.500	9203.000	4258.290
MISCELLANEOUS EXPENSES		0.000	0.000	0.620
TOTAL		31576.200	12521.120	6374.87

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	38577.400	19407.600	8043.597
Profit/(Loss) Before Tax	9026.600	3924.500	1306.814
Provision for Taxation	814.700	309.800	130.000
Profit/(Loss) After Tax	8211.900	3614.700	1176.814
Export Value	N.A.	279.600	363.168
Import Value	N.A.	7297.280	3377.380
Total Expenditure	29550.800	15483.100	7106.987

QUARTERLY RESULTS

PARTICULARS	30.06.2006 [1^st Qtr.]
Sales Turnover	9337.700
Other Income	129.300
Total Income	9467.000
Total Expenditure	6944.800
Operating Profit	2522.200
Interest	163.100
Gross Profit	2359.100
Depreciation	149.300
Tax	273.800
Reported PAT	1936.000

Notes

200606 Quarter 1

Expenditure Includes (Increase)/Decrease in stock in Trade Rs (979.40) million Consumption of Raw Material (including Purchase of traded goods) Rs 6370.70 million Staff Cost Rs 201.50 million Other cost Rs 1352.00 million EPS is Basic Status of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter 04 Complaints Received during the quarter 56 Complaints disposed off during the quarter 56 Complaints unresolved at the end of the quarter 04 1. The above results were reviewed by the audit committee and subjected to a limited review by the statutory auditors of the Company and have been taken on record by the Board of Director and the audit committee at their meeting held on July 29, 2006. 2. The Company as part of its long-term plans of having independent manufacturing units for various components of a Wind Turbine Generator ('WTG') has realigned its operations and has commenced sale of tubular towers through one of its wholly owned subsidiaries. Accordingly, the sales of WTG's for the quarter ended June 30, 2006, do not include the sale of tubular tower aggregating approximately Rs 934.50 million, which have been sold through the wholly owned subsidiary. Accordingly, the sales realizations and gross margins during the quarter ended June 30, 2006 are to that extent not comparable with the results of prior periods presented. 3. In view of the seasonality of business the financial result for the quarter ended are not indicative of the full year's performance. 4. Suzlon Energy Ltd (SEL) or the Company through Its wholly owned subsidiary, Ae-Rotor Holding BV., the Netherlands (AE-Rotor) has on May 09, 2006, purchased 100% of the share capital of Eve Holding NV, Belgium fore consideration of Euro 431.43 million by virtue of the acquisition of Eve holding NV by Ae-Rotor, the company has 100% ownership of Hansen Transmissions International NV. Belgium along with its subsidiaries, which are engaged in the business of design, development, manufacturing and supply of industrial and wind gear boxes and is the second largest wind energy gearbox manufacturer in the world having approximately 33% global market share, The provisional unaudited consolidated results of Hansen Transmissions International NV, Belgium (At per Belgium GAAP) for the period May 01, 2006 to June 30, 2006 are as follows: Sales - Rs 3151.90 million: Profit Before Tax Rs 387.70 million. 5. The Company is primarily engaged in the business of manufacture and sale of WTG's and its parts. These, in the context of Accounting Standard 17 ('AS-17'), Segment Reporting issued by the ICAI, are considered to constitute one single primary segment. Hence, as per accounting standard Interpretation -20 issued by the ICAI, Segment information as per AS-17 not required to be disclosed. 6. The figures stated above, have been reclassified wherever necessary to confirm with the classification in the financial statements for the quarter ended June 30, 2006.

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt Equity Ratio	0.18	0.41	0.45
Long Term Debt Equity Ratio	0.09	0.18	0.28
Current Ratio	2.23	1.76	1.82
TURNOVER RATIOS
Fixed Assets	12.25	10.17	6.61
Inventory	4.74	5.51	5.53
Debtors	3.35	3.86	2.81
Interest Cover Ratio	17.54	10.50	6.12
Operating Profit Margin (%)	26.48	24.65	21.09
Profit Before Interest and Tax Margin (%)	25.27	22.62	19.87
Cash Profit Margin (%)	22.89	20.88	17.68
Adjusted Net Profit Margin (%)	21.68	18.85	16.46
Return on Capital Employed (%)	43.41	46.36	31.73
Return on Net Worth (%)	45.26	60.10	38.88

LOCAL AGENCY FURTHER INFORMATION

NOTE :

SE FORGE

Address : 5^th & 6^th Floor, Viscos Towers, Avinashi Road, Coimbatore – 641019, Tamilnadu, India

This is a new project of Suzlon Energy Limited for :

1. Setting up Foundry of capacity 100000 tonnes castings which would be operational in 2^nd quarter of

2007

and

2. Setting up Forgings for Winter Winds which would be operational by end of 2007.

It was confirmed by Mr. Hygo Shipmann who is foreign technician working for the project.

HISTORY

The company was incorporated on 10^th April 1995 at Ahmedabad in Gujarat having Company Registration Number 25447.

Subject belongs to Suzlon Group of Companies promoted by Mr. Tulsibhai R. Tanti, a qualified and technocrat entrepreneur along with his family members.

The company has developed in house technology through their own Research and Development centres in Germany and Nederland and has developed largest Wind Farm with 201MW capacity at Satara, Maharashtra, which is the largest Wind farm of Single make in Asia.

Suzlon integrates consultancy, design, manufacturing, operation and maintenance services to provide customers with total wind power solutions 

Suzlon is one of the fastest growing Wind Energy companies in the world. The key to companies meteoric growth has been companies vision of creating world-class products by adopting the best of everything from around the globe. Suzlon has a subsidiary in Germany for technology development, an R&D facility in the Netherlands for rotor blade molding and tooling, and Wind Turbine and rotor blade manufacturing facilities in India. All this is backed up by stringent international quality control and assurance systems like ISO 9001:2000 and Type certification. 

The Company was incorporated in 1995 by Tulsi Tanti. Tulsi Tanti was primarily in the textile business and was introduced to wind energy through a wind power project that he had commissioned for his textile factory. The first subscribers to the Memorandum were the family members and friends of Tulsi Tanti. 

The Company entered into a technical collaboration agreement in 1995 with a German company, Sudwind GmbH Windkrafttanlagen to source the latest technology for the production of WTGs in India. Sudwind GmbH Windkrafttanlagen was subsequently taken over by Sudwind Energiesysteme GmbH ('Sudwind'). The parties entered into a fresh agreement dated September 30, 1996, under which Sudwind proposed to share technical know-how relating to 0.27 MW, 0.30 MW, 0.35 MW, 0.60 MW and 0.75 MW WTGs in consideration for royalty to be paid on the basis of each WTG sold over the course of five years from the date of this agreement. The Company obtained the official non-exclusive, non-transferable license for the manufacturing, marketing, dealing and servicing of APX-60 type blades from the trustee of Aerpac B.V. upon its liquidation, for consideration of Euro 200,000 vide an agreement that was entered into between the trustee of Aerpac B.V. and the Company dated June 4, 2001. This license is valid for an indefinite period. The Company entered into an agreement dated April 10, 2001 with Enron Wind Rotor Production B.V. for the acquisition of the moulds and the production line and technical support and assistance for the production of the rotor blade type APX 60-P in India for total consideration of Euro 500,000. Enron has granted these rights for the manufacturing, marketing and dealing with the products for an indefinite period. 

The Company introduced the concept of total solutions wherein, in addition to the supplies of equipments, the client is offered project execution work comprising land acquisition, site development, erection and commissioning, foundation and other civil work and O&M services. These services are offered in conjunction with the Associate Companies. SWSL, a subsidiary of the Company, was incorporated in 1998 with the objective of providing O&M for wind power projects set up by the Company. The Company has also set up technological development centres in Germany and The Netherlands through wholly-owned subsidiaries. SEG, incorporated in 2001 and earlier known as AX 215 Verwaltungsgesellschaft mbH became a wholly-owned subsidiary of the Company in 2002. AERT, a wholly owned subsidiary of AERH, which in turn is a wholly owned subsidiary of the Company, was incorporated in 2001 to engage in the development of technology for rotor blades, a key component of WTGs. Further, Suzlon Energy A/S, a wholly-owned subsidiary of the Company was incorporated in August, 2004 to supervise the international marketing activities of the Company. It is proposed that the entire non-India marketing activities of the Company shall be coordinated through Suzlon Energy A/S. SWECO, now a wholly-owned subsidiary of the Suzlon Energy A/S, was incorporated in 2001 to market, the WTGs manufactured by the Company in U.S.A. Further, Suzlon Energy A/S has another wholly-owned subsidiary, Suzlon Energy Australia Pty Limited, which was incorporated in 2004 to access the wind energy market in Australia. Suzlon Energy B.V. earlier known as AE-Rotor B.V., The Netherlands, a wholly-owned subsidiary of AERH, which is a wholly-owned subsidiary of the Company, was incorporated in 2001 to market the rotor blades manufactured by the Company. Cannon Ball Wind Energy Park-I, LLC ('Cannon Ball') was incorporated as a limited liability company in July, 2002 for the purpose of setting up a wind power project in North Dakota, USA. Cannon Ball is a wholly-owned subsidiary of SWECO which is a subsidiary of Suzlon Energy A/S. Further, a representative office of the Company was also set up in China in 2003 to explore the Chinese market.

Suzlon Energy Limited has taken a step further for establishing its presence in China by commencing the establishment of a wind turbine generator manufacturing facility in China through its wholly owned subsidiary Suzlon Energy (Tianjin Limited, The said manufacturing facility which is scheduled to commence its commercial operations by about Second quarter of financial year 2006-2007 would cater to the energy needs of China. 

The companies product range includes 0.35 MW, 0.60 MW, 0.95 MW, 1.00 MW, 1.25 MW and 2.00 MW WTGs 

Suzlon Energy also has the distinction of introducing the concept of large wind parks in Asia and has gone on to build some of the largest wind parks in Asia including the world's largest wind park of its kind. 

Further, Suzlon's status as a force to reckon with in the wind energy industry came with the World Wind Energy Association's award for the year 2003, recognizing its contribution in disseminating wind energy worldwide.

BUSINESS

The company specializes in providing total solutions in wind power generation with cohesive integration of design, manufacturing, installation, operations and maintenance services.

v In the mid-capacity segment of wind energy converters, the company offers 350 KW

v In higher capacity segment the company has an entire Mega Power Series in the offerings

-- 950KW

-- 1MW

-- 1.25 MW

v The company is currently developing 2 MW turbine (WEC).

Projects are also under progress in Karnataka and in Rajasthan.

Its major customers include manufacturers and end users

The company has collaboration with Sudwind Energiesysteme GmbH of Germany for manufacturing of wind turbine generators.

It ranked 9^th amongst the top 10 Wind Energy Turbine Manufacturers in world and 1^st in India has ambitious plans for exports of Turbines to U.S.A., China, Australia and New Zealand.

Subject has been accredited with ISO 9001:2000 Certification from Det Norske Veritas for manufacturing, installation, commissioning, operating and maintenance of wind mill by wind turbine generators division.

While the modern wind energy technology had been dominated mainly by the U.S.A. and Organization of Economic Co-operation and Development (OECD) countries, this endeavour registers a first time south-north Co-operation, and thus opening up new vistas in a highly specialized field for India. That had been achieved through continual efforts put by Suzlon through establishment of research and development centres in the European Union and world-class manufacturing facilities at Daman.

Commitment to the cause and superior performance of its Wind Turbines based on its strong R&D focus has resulted in company reaching the top few in the wind energy markets world over, in a very short period of time. Today, the company ranks among the top ten in the world. The company has to its credit the development of the World's largest wind park, of 250 MW capacity, of its kind.

One of the major issues in exporting wind turbine from India is with respect to high logistics costs, which offset the competitive edge of lower production costs. At this stage, the government should provide the stimuli by formulating a policy conductive for exports, as was done to boost the information technology sector.

The export of wind turbine was not of just a technology but a total project export. Such exports of wind turbines and financing from developed countries go hand in hand. Using the same analogy, the sector also offers bankers in India an excellent opportunity in overseas business.

Considering the new business opportunities in China, Australia and New Zealand, the company is in process of setting up joint ventures and subsidiaries in the near future.

The company offers a comprehensive range of value-added services and solutions. It ensures permanent energy yield optimization in accordance to the onsite climate and grid conditions. The detailed monitoring of several wind turbine parameters, formidable technology expertise, plus a comprehensive range of advanced systems enable it to provide the most effective and integrated level of service. The combined synergy of our business units and customer support network deliver benefits to our customers.

DIVIDEND :

An interim dividend of Rs. 2.50 per equity share (25% on par value of Rs. 10.00) absorbing a sum of Rs. 718.8 millions was paid in February 2006. 

The directors recommend a final dividend of Rs. 2.50 per equity share absorbing a sum of Rs. 718.8 millions for the financial year 2005-2006 subject to the approval of the shareholders at the ensuing Annual General Meeting. 

The directors have also recommended dividend of Rs. 10 per share absorbing a sum of Rs. 15.1 millions on 10% cumulative redeemable preference shares of Rs. 100 each. 

The total dividend payout ratio for the year 2005-2006 is 17.69% (previous year 10.04%). 

BUSINESS OVERVIEW 

The Company had a very successful year, with robust growth in sales and profits. The sales were Rs. 37884.6 millions and profit after tax was Rs. 8211.9 millions, registering a growth of 97.57% and 127.19%, respectively. 

The strong performance of the Company is attributed to increasing demand for Wind Turbine Generators (WTGs) worldwide. There is a growing global acceptance for increasing the share of renewable energy in the energy-mix in most countries. This has lead to the development of conducive policies world over to support the growth of renewable energy. Wind energy has emerged as the largest beneficiary as it is commercially viable alternative, and has made a significant contribution in the world energy market. Cumulative wind power installations worldwide reached 59264 MW by the end of calendar year 2005. The cumulative installations are expected to reach nearly 150000 MW at a CAGR of 21% by the year 2010.

India ranked fourth amongst the wind energy markets worldwide for the calendar year 2005 with cumulative installations of 4253 MW accounting for 7.20% of the global installed capacity. The Indian wind energy market has shown a growth of 41.80% during the said period. The Indian wind sector is expected to continue to grow, given the power shortfalls, rising demand for power, as well as the strong emphasis by the government on the promotion of the sector. The Indian wind power installations are expected to reach 12253 MW by the end of year 2010. 

The Company was placed fifth worldwide in terms of annual installations and second in terms of increase in market share during the calendar year 2005. 

The Company continues to dominate the Indian market with market share of over 50% and operates in eight states in India. It had cumulative global sales of 2,321 WTGs with total capacity of 2,108.09 MW on March 31, 2006. 

The Company's strategic focus outside home market is to expand globally in the leading markets like USA and China and the emerging markets of Europe. The international business headquarters established in Denmark has successfully garnered large international orders across America, Asia Pacific and Australia.  

The directors believe that the Company will continue to enhance its market position as a result of some of the following initiatives: 

- Enhanced manufacturing capabilities. 

- Expansion of operations across varied geographies. 

- Extended range of successful turbine models and development of new models. 

- Continuous R&D, product development and upgradation in WTG and its components. 

- Focused vertical integration to enhance the value chain, secure timely deliveries and enhance the

technological knowledge pool at component level. 

- Strategic acquisitions across the value chain of wind energy solutions. 

- Strong trained, dedicated and motivated human asset base in India and abroad. 

Generic Names of Principal Products / Services of the company is as under :

Product Description	Item Code No.
Wind operated electricity generators	3601

Fixed Assets

Freehold Land, Leasehold Land, Buildings, Plant And Machinery, Computers And Office Equipments, Furniture And Fixtures And Vehicles.

NEWS :

2005

Suzlon opens its International operations head quarters at Aarhus Denmark

Suzlon Energy Ltd, Asia’s largest integrated wind power company opened office of their wholly owned subsidiary, Suzlon Energy A/S in the Aarhus Denmark, which is known as a hub for wind energy.

A small but graceful function for the formal opening was organized at the office itself. The function was attended by about hundred persons from the wind industry. Amongst the invitees were customers, bankers, vendors, stakeholders and well wishers of Suzlon. Indian Ambassador in Denmark Mr. Harsh Bhasin graced the function by his presence.

In his opening speech, CEO of Suzlon Energy A/S, Mr. Per Pedersen, welcomed the guests and formally announced opening of the office. He also highlighted various activities that would be carried out from this office, namely management of Suzlon’s global business initiatives. Mr. Tulsi Tanti Chairman of Suzlon in his brief address explained why Suzlon chose Denmark for its global head quarter over other destinations and reiterated Suzlon’s commitment to wind energy. India’s ambassador to Denmark Mr. Bhasin hailed Suzlon’s achievements in wind industry over past few year and mentioned that in the times of outsourcing of jobs from Europe to India, Suzlon has created a history by reversing the trend by generating employment opportunity in Denmark. Mr. Dipak Rostogi, head of CVC international Citi group, in his colourful speech explained why Citi group chose to participate in Suzlon as equity investor.

Suzlon reception generated lot of excitement amongst local media, local press and TV acknowledged Suzlon’s entry in Denmark and carried short stories on the subject.

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 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. 45.92
UK Pound	1	Rs. 86.53
Euro	1	Rs. 58.38

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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

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