MIRA INFORM REPORT

Report Date :

08.10.2007

IDENTIFICATION DETAILS

Name :	KL SOLAR COMPANY PRIVATE LIMITED
Registered Office :	6/8, Bharathi Colony, Main Road, Peelamedu, Coimbatore – 641 004, Tamilnadu
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	01.09.2004
Com. Reg. No.:	011313
CIN No.: [Company Identification No.]	U29307TZ2004PTC011313
TAN No.: [Tax Deduction & Collection Account No.]	CMBK04140D
PAN No.: [Permanent Account No.]	PAN APPLIED
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Exporters of renewable energy products.

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

Maximum Credit Limit :	USD 23000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track records. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. 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 :	6/8, Bharathi Colony, Main Raod, Peelamedu, Coimbatore – 641 004, Tamilnadu, India
E-Mail :	klsolar@solarpv.info
Website :	http://www.klsolar.com
Factory 1 :	1/482 – B, Transport Nagar, Neelambur, Coimbatore – 641 014, Tamilnadu, India
Tel. No.:	91-422-2628909 / 6563638
Fax No.:	91-422-2628504
E-Mail :	info@klsolar.com

DIRECTORS

Name :	Mr. Narayansami Krishnakumar
Designation :	Non-Executive Director
E-Mail:	krish@uslpv.com
Date of Birth/Age:	27.06.1955
Address :	6/8, Bharathi Colony, Main Raod, Peelamedu, Coimbatore – 641 004, Tamilnadu, India
Date of Appointment :	01.09.2004
Name :	Mrs. Latha Krishnakumar
Designation :	Executive Director
Date of Birth/Age:	18.09.1960
Address :	6/8, Bharathi Colony, Main Raod, Peelamedu, Coimbatore – 641 004, Tamilnadu, India
Date of Appointment :	01.09.2004
Name :	Mr. K. Arun
Designation :	Director
Address :	6/8, Bharathi Colony, Main Raod, Peelamedu, Coimbatore – 641 004, Tamilnadu, India
Date of Appointment :	01.09.2004
Name :	Mr. Krishnakumar Vishnu
Designation :	Non-Executive Director
E-Mail:	vishnu@klsolar.com
Date of Birth/Age:	18.04.1984
Address :	6/8, Bharathi Colony, Main Raod, Peelamedu, Coimbatore – 641 004, Tamilnadu, India
Date of Appointment :	01.09.2004

Key Executive

Name:	Mr. C N Paramasivam
Designation :	Company Secretary
Address :	Surya, 35 Mayflower Avenue, Behind Senthil Nagar, Sowripalayam Raod, Coimbatore – 641028
Tel No.:	91-422-2316758
Fax No.:	91-422-2314792

SHAREHOLDING PATTERN

Name of Shareholders	No. of Shares
Mr. A Arun	57500
Mr. N Krishna Kumar	57500
Ms. Latha Krishna Kumar	57500
Mr. K. Vishnu	57500
Category	Percentage of Holding
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers and Exporters of renewable energy products.
Products :	v PV-Modules v Off-Grid Modules v Grid-connected Modules

GENERAL INFORMATION

Bankers :

v UCO Bank Head Office: No. 10, Biplabi Trailokya Maharaj Sarani, Kolkata Branch at 862, Raja Street Coimbatore – 641 001, Tamilnadu, India

Banking Relations :	Satisfactory
Auditors :
Name :	R. Gurubatham Chartered Accountant
Address :	Gurukripa, Iyer Hospital Road, Singanallur, Coimbatore – 641 005, Tamilnadu, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs. 10.00 each	Rs. 5.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
230000	Equity Shares	Rs. 10.00 each	Rs. 2.300 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		2.300	2.300
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		3.666	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		5.966	2.300
LOAN FUNDS
1] Secured Loans		0.661	0.000
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		0.661	0.000
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		7.077	2.300
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.141	2.242
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.783	0.000
	Sundry Debtors	5.609	0.000
	Cash & Bank Balances	0.443	0.121
	Other Current Assets	0.000	0.000
	Loans & Advances	1.001	0.055
Total Current Assets		7.836	0.176
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	5.860	0.247
	Provisions	0.143	0.000
Total Current Liabilities		6.003	0.247
Net Current Assets		1.832	(0.072)
MISCELLANEOUS EXPENSES		0.104	0.130
TOTAL		7.077	2.300

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006
Sales Turnover		10.552
Other Income		2.665
Total Income		13.217
Profit/(Loss) Before Tax		4.308
Provision for Taxation		0.642
Profit/(Loss) After Tax		3.666
Earnings in Foreign Currency :		10.552
Imports :
	Raw Materials	0.553
	Capital Goods	0.934
Total Imports		1.487
Expenditures :
Total Expenditure		4.308

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005
PAT / Total Income	(%)	27.73	NA
Net Profit Margin (PBT/Sales)	(%)	40.82	NA
Return on Total Assets (PBT/Total Assets}	(%)	33.19	NA
Return on Investment (ROI) (PBT/Networth)		0.72	NA
Debt Equity Ratio (Total Liability/Networth)		1.12	0.11
Current Ratio (Current Asset/Current Liability)		1.31	0.71

LOCAL AGENCY FURTHER INFORMATION

Name of the company	KL SOLAR COMPANY PRIVATE LIMITED
Presented By	Mr. N. Krishnakumar, Director
1) Date and description of instrument creating the change	1) Deed of Hypothecation of Movable Plant and Machinery to secure Term Loan for Rs. 0.7000 millions dated 17.06.2005 2) Hypothecation of Book Debts to secure Demand Cash-Credit for Rs. 2.500 millions dated 17.06.2005 3) Agreement for Extension of charge by way of Hypothecation over Current Assets to secure Non-Fund Based facilities dated 17.06.2005 4) Draft of Hypothecation of Plant and machinery as Additional Security to secure the fund based and non fund based limit of Bank Guarantee of Rs. 0.200 millions and Letter of Credit of Rs. 0.500 millions upto a total extent of Rs. 3.900 millions dated 17.06.2005
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 3.900 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	First charge by way of hypothecation of the movable plant, machinery, equipments, implements and appliances and all present and future stocks of raw materials such as Silicon Wafers, work-in-process, finished goods, stores and spares stored and/or to be store/brought in or situated at 1/482-B, Transport Nagar, Neelambur, Coimbatore – 641 014 any where else. First charge on the Present and Future Book-Debts bill money receivable chooses in action claims, all sums due or to be become due. First charge on all the movable properties of the Company present and future. First charge on all Plant, machinery, engines, boilers, appliances, tools and implements brought in or stored or to be stored at 1/482B, Transport Nagar, Neelambur, Coimbatore – 641 014
4) Gist of the terms and conditions and extent and operation of the charge.	The charge operates as security for the due repayment by the Company to UCO Bank of its loan together with interest, costs, charges, expenses and other moneys payable. Rate of interest is 2.5% over the Reserve bank rate subject to the minimum 13.5% per annum. Other terms and conditions are as per Agreement (s) enclosed.
5) Name and Address and description of the person entitled to the charge.	v UCO Bank Head Office: No. 10, Biplabi Trailokya Maharaj Sarani, Kolkata v Branch at 862, Raja Street Coimbatore – 641 001, Tamilnadu, India
6) Date and brief description of instrument modifying the charge	Not Applicable
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Not Applicable

Corporate identity number (CIN) Foreign company registration number

U29307TZ2004PTC011313

Name of the Company

KL SOLAR COMPANY PRIVATE LIMITED

Address

6/8, Bharathi Colony, Main Road, Peelamedu, Coimbatore – 641 004, Tamilnadu, India

This form is for

Modification of Charge

Type of Charge

A charge on:

v Book Debts

v Movable property (not being pledge)

v Floating Charge

Particulars of the charge holder

UCO Bank

Sri Murugan Towers, 1524/1287, Trichy Road, Coimbatore – 641 018, Tamilnadu, India

E-Mail: bo.coimba@ucobank.co.in

Nature or description of the instrument(s) creating or modifying the charge

1. Hypothecation of Goods to secure a Demand Cash Credit

2. Hypothecation and Book Debts to Secure Demand Cash Credit

3. Agreement For Packing Credit Advance

4. Deed of Hypothecation of Movable Plant and Machinery to Secure a Term Loan

5. Agreement for Extension of Charge By way of Hypothecation over Current Assets to Secure Non-Fund Based Facilities.

Date of the instrument creating or modifying the charge

11.06.2007

Amount secured by the charge

Rs. 13.637 millions

Brief particulars of the principal terms and conditions and extent and operation of the charge

(a) Rate of Interest:

BPLR – 4.00% per annum subject to minimum of 9.50% per annum with monthly rests for packing credit.

(b) Terms of Repayment:

Repayable on demand inclusive of interest/commission/charges to the date of payment

(c) Margin:

Packing Credit -25% on stocks and 40% on book debts

Letter of Credit-25% by way of FDR

Bank Guarantee-25% by way of FDR

(d) Extent and operation of the charge

First charge over stock of Photovoltaics cells, modules, equipments etc. and other current assets including raw materials tock in process, finished goods etc. and movable property of any kind, plant and machinery, implements and appliances and Book Debts/Receivables operate as security for due repayment of loan (both fund based and non-fund based) along with interest, expenses and charges.

Short particulars of the property charged (including location of the property)

stock of Photovoltaics cells, modules, equipments etc. and other current assets including raw materials tock in process, finished goods etc. and movable property of any kind stored at 1/482B, Transport Nagar, Neelambur, Coimbatore – 641 014 or anywhere else and Laser process machines, PECUD equipments, screen printing machine, furnace, laminators, oven, water treatment plant, testing and other ancillary equipment etc and Book Debts/Receivables.

Particular of the present modification

Facilities	Existing	Revised
	(Rs. in Millions)
PC	2.500	10.000
Bank Guarantee	0.500	3.000
Letter of Credit	0.200	0.200
Term Loan	0.700	0.437
Total	3.900	13.637

Secured by the first charge on stocks, Movable Plant and Machinery, Book Debts, Receivables and other current assets.

Website details attached:

They are a” Green Power Company” Founded in late 2004.

Mission

Provide compelling and useful green energy products for people around the world.

Overview

They learn from their past experience and customers. When they initiate production they listen to what their customers have to say and they then set out to design products based on their customer's wants and need's--because they can't make their products better until they know what their customers want to do with it. They get motivated when they create products that make the tasks easier, efficient, and more eco-friendly.

Their flagship product range for the Off-Grid market was released in late '05 and became an instant hit with customers worldwide. Within months of release our product volumes surged to new heights. Since the release they've been fortunate to receive contracts for OEM manufacturing from prestigious global companies like Solar World AG. Their association makes us a privileged entity in the global domain.

To the present date their products is used by hundreds of installers and end-users. From those starting out in the Photovoltaic field they welcome you to join their family of customers to make their planet earth a cleaner place to live.

About Solar

Modern day devices that convert sunlight into energy are called photovoltaic cells or “PVs” for short. More commonly, they're known as solar cells. Solar photovoltaic cells are small, square shaped panel semiconductors manufactured in thin film layers from silicon and other conductive materials. When sunlight strikes the PV cell, chemical reactions release electrons, generating electric current. The small current from individual PV cells, which are installed in modules, power individual homes and businesses, or can be plugged into the bulk electricity grid.

Unlike conventional sources of electricity, which are a major cause of problems like smog, acid rain and global warming, a solar system produces no air or water pollution. Solar has zero emissions, operates silently, requires little maintenance and is generated where it is needed - in the home, at a factory or in an office building. Solar energy's benefits are real and immediate - creating savings for years to come while reducing Greenhouse Gas (GHG) emissions and helping the environment. Because they do not produce polluting air emissions or water effluents, solar PV systems are prime candidates for supplying electricity at locations where such environmental impacts are unacceptable; for example, in parks and places where preserving high levels of environmental quality is important. Due to strong demand world-wide and technological innovations, solar PV panels have become increasingly affordable. Solar PV systems are upgradeable and expandable. Depending on the budget, a basic system can be installed initially and more PV modules can be added later.

Product Range

PV-Modules (OEM)

They manufacture Crystalline PV-Modules. Being Original Equipment Manufacturers (OEM), they produce these modules on the basis of the customers' specifications. Hence their products are customized to their clients' needs and as per their requirements.

Off-Grid Modules

Off-Grid-connected PV power systems are part of the movement toward an independent electrical network. A "off-grid pv system” generates its own electricity for its application needs. The generated power is stored by charging a battery bank during day on sunny days. One can use battery banks to provide power for the application systems when required even during night time. Their of-grid-modules range from 5 w and above to up to 120 w. This range of PV Modules charge systems with either 6V/12V.

Grid-connected Modules

Grid-connected PV power systems are part of the movement toward a decentralized electrical network. A "grid-connected" system generates its own electricity and feeds its excess power into the utility grid for later use. This does away with buying and maintaining a battery bank. One can still use battery banks to provide backup power when the grid goes down, but they are not required. Their grid-connected modules range from 100 w and above to up to 240 w.

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 records 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. 39.49
UK Pound	1	Rs. 80.41
Euro	1	Rs. 55.76

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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