MIRA INFORM REPORT

Report Date :

29.04.2008

IDENTIFICATION DETAILS

Name :	DIAMOND POWER INFRASTRUCTURE LIMITED
Formerly Known As :	DIAMOND CABLES LIMITED
Registered Office :	Village Vadadala, Phase II, Taluka Savli, District Baroda – 391 520, Khardapada, Nani Naroli, Silvassa Dadra And Nagar Haveli
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	26.08.1992
Com. Reg. No.:	04-18198
CIN No.: [Company Identification No.]	L31300GJ1992PLC018198
TAN No.: [Tax Deduction & Collection Account No.]	BRDD00416D
PAN No.: [Permanent Account No.]	AAACD8043K
Legal Form :	Public Limited Liability Company. The company shares are listed on the Stock Exchange.
Line of Business :	Manufacturer of Transmission and Conductor

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 2183980
	Status :			Good
	Payment Behaviour :			Regular
	Litigation :			Clear
	Comments :			Subject is a well – established and reputed company having satisfactory track. Trade relations are fair. Business is active. Payments are reported as usually correct and as per commitments. The company can be considered normal for business dealings ay usual trade terms and conditions.

LOCATIONS

Registered Office :	Village Vadadala, Phase II, Taluka Savli, District Baroda – 391 520, Khardapada, Nani Naroli, Silvassa Dadra And Nagar Haveli, India
Tel No:	91-2667-251516
Fax No.:	91-2667-2512022
E-Mail :	shares@dicabs.com deepak@dicabs.com
Website :
Corporate Office / Head Quarter:	Essen House, 5/12, BIDC Gorwa, Baroda – 390 016, Gujarat, India
Tel No:	91-265-2284328 / 2283969
Fax No.:	91-265-2284328
Factory:	· VILL - Vadadala, Ta – Savli, District Baroda Gujarat, India. Tel No.: 91-2667-251202 Fax No.: 91-2667–251202 · 24-B, Nanji Industrial Estate, Kharadpada, Silvassa (Dadra and Nagar haveli India Tel No.: 91-260-2650458 · Village Samlia, Ta. Padra, District Vadodara Gujarat, India. Tel No.; 265-2284328 / 2283969 · Plot No. 101/B/7, G.I.D.C Estate. Road No.2, Ranoli - 391 350 District : Vadodara. Gujarat Tel No.: : 265-3299596 Fax No.: 265-2240591
Branches:	Delhi Offices: 310, 3rd Floor Laxman Plazza, Munirka, New Delhi India. Pin: 110067 Tel No.: 91-11-32981112 / 322131112 Mumbai Office: 49/51, 3rd Floor ,Ahmed Building ,Lohar Chawl , B.N.Sharma Marg Mumbai- 400002, India Tel - 91 - 22 – 22000179 Bangalore / Bengaluru Office 6 / 2 A, Second Floor 6^th Main, 40^th Cross 5^th Block, Jayanagar Bangalore - 560 041 India

DIRECTORS

Name :	Mr. S N Bhatnagar
Designation :	Chairman and Managing Director
Name :	Mr. Amit Bhatnagar
Designation :	Joint Managing Director
Name :	Mr. Sumit Bhatnagar
Designation :	Joint Managing Director
Name :	Mr. G N Verma
Designation :	Director
Name :	Mr. T N Bhatnagar
Designation :	Director
Name :	Mr. Prakash Sinha
Designation :	Director
Name :	Mr. Amit Gupta
Designation :	Nominee Director (CCP - Cyprus)
Name :	Mrs. Jayshree Krishna
Designation :	Nominee Director (CCP - India)

KEY EXECUTIVES

Name :	Mr. Deepak K Joshi
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders (as on 31.03.2007)	No. of Shares	Percentage of Holding
Promoters	2523606	16.26%
Bodies corporate	4739694	30.54%
Other bodies corporate	588870	3.79%
Clearing members	9201	0.06%
Foreign Ins. Investors	2557751	16.48%
Nationalized Banks	500	0.00%
Non Resident Indians	545164	3.51%
Public	4555464	29.35%
Total	15520250	100.00%

BUSINESS DETAILS

Line of Business :

Manufacturer of Transmission and Conductor

Products :

Item Code	Product Description
AYFY, AYY, YWY, YY	FRLS, XLPS Cables
AAA,AAAC,ACSR	Conductor
EC Alloy	Wire rods

Exports :

Countries :

New Zealand, Zimbabwe, Tanzania, Srilanka, Tazekistan, Bangladesh, Israel

PRODUCTION STATUS (as on 31.03.2007):-

Particulars	Unit	Installed Capacity	Actual Production
		(6months)	Current Years (6 months)	Previous Years (18 Months)
All Aluminium Alloy Conductors and ACSR Conductor	MTPA/ Kms	50500	27200	48094
LT Electric Power Cables and Control Cables	Kms	5550	1631	1944.258

GENERAL INFORMATION

Suppliers :

· Anudeep Alucast

· Deluxe Flush Doors

· Ulmiya Industries

· Shree Durga Timber

· Amrish Sales Corp.

Customers :

· Cimmco International, New Delhi

· Jay Exports, Porbander

· Gujarat Dyestuff Limited, Baroda

· Ajanta Pharma Limited , Mumbai

· Klein and Marshall Limited

· Abb Limited , Baroda

· Indian Electricals, Coimbatore

· Aeg-Ngef (Ge-D)

· Asea Brown Boveri Limited.

· Acc Limited.

· Alembic Chemical Works Limited.

· Asian Paints (I) Limited., Ankleshwar

· Birla Periclasse (A Unit Of Indian Rayon)

· Bajaj Electrical Limited, Mumbai

· B.S.E.S. Limited., Bangalore and Hyderabad

· Crompton Greeves Limited, Nashik

· Cimmco International (Birla Group)
Chattisgarh State Electricity Board

Bankers :

· Bank of Baroda

· HDFC Bank Limited

· Centurion Bank of Punjab Limited

Facilities :

SECURED LOAN	31.03.2007 (6 months) (Rs. in millions)
Clear water Capital Partners loan	400.676
Other loans	0.000
Non – convertibles Debentures	685.000
Total	1085.676

UNCEURED LOANS	31.03.2007 (6 months) (Rs. in millions)
From Relatives and Associates	[0.032]
Sales Tax Defferment Loan	93.073
Fully Convertible Debentures	118.750
Total	211.791

Banking Relations :

Satisfactory

Auditors :

Name :

Vijay N Tewar and Company

Chartered Accountants

Address :

315-316, Panorama, R C Dutt Road, Baroda – 390 007, Gujarat, India

Associates/Subsidiaries :

· Diamond Projects Limited

· Enterprises Intelligence Systems Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs. 10/- each	Rs.200.000 millions

Issued & Subscribed Capital :

No. of Shares	Type	Value	Amount
16200000	Equity Shares	Rs. 10/- each	Rs.162.000 millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
15520250	Equity Shares	Rs. 10/- each	Rs.155.202 millions
800000	Share Warrant Money (Rs. 9.50 paid)	Rs. 10/- each	Rs. 7.600 millions
		Total	Rs.162.802 millions

Of the above :-

4640800 Equity Shares were allotted on preferential basis during 1999-2000

750000 equity shares were allotted on preferential basis during 2005-2006

1250000 Equity shares were allotted on conversion of fully convertible debentures on preferential basis during the year 2006 – 2007

(The company had forfeited 679750 equity shares on 29.4.2000 out of issued capital of 16200000 equity shares)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007 [6 months]	30.09.2006 [18 months]	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		162.802	150.302	135.200
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		383.193	276.943	[138.100]
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		545.995	427.245	[2.900]
LOAN FUNDS
1] Secured Loans		1085.676	685.858	1070.800
2] Unsecured Loans		211.790	339.073	106.200
TOTAL BORROWING		1297.466	1024.931	1177.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1843.461	1452.176	1174.100
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		174.696	177.031	215.200
Capital work-in-progress		54.323	0.000	0.000
INVESTMENT		14.649	0.046	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	571.592	470.840	306.300
	Sundry Debtors	426.811	339.827	588.500
	Cash & Bank Balances	325.245	187.130	17.000
	Other Current Assets	116.741	66.075	0.000
	Loans & Advances	113.068	15.777	163.000
Total Current Assets		1553.457	1079.649	1074.800
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	54.064	55.980	124.400
	Provisions	12.361	5.051	18.900
Total Current Liabilities		66.425	61.031	143.300
Net Current Assets		1487.032	1018.618	931.500
MISCELLANEOUS EXPENSES		112.761	256.481	27.400
TOTAL		1843.461	1452.176	1174.100

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007 [6 months]	30.09.2006 [18 months]	31.03.2005 [6 months]
Sales Turnover		1318.835	2363.491	337.300
Other Income		4.864	21.091	0.800
Total Income		1323.699	2384.582	338.100
Profit/(Loss) Before Tax		137.861	151.798	6.000
Provision for Taxation		0.223	0.527	0.000
Profit/(Loss) After Tax		137.638	151.271	6.000
Export Value		NA	146.463	NA
Import Value		NA	35.500	NA
Expenditures :
	Manufacturing Expenses	31.960	38.959	5.600
	Selling and Distribution Expenses	5.746	32.289	14.600
	Administrative Expenses	20.991	34.866	0.000
	Raw Material Consumed	1137.016	1935.286	192.200
	Increase/(Decrease) in Finished Goods	[96.313]	[27.820]	0.000
	Salaries, Wages, Bonus, etc.	13.223	27.756	4.700
	Interest	0.000	0.000	58.500
	Power & Fuel	12.192	30.953	38.400
	Finance Charges	47.657	115.316	0.000
	Depreciation & Amortization	13.363	39.176	13.000
	Other Expenditure	0.000	0.000	3.200
Total Expenditure		1185.835	2226.781	330.200

QUARTERLY RESULTS

PARTICULARS	30.06.2007	30.09.2007	31.12.2007
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Sales Turnover	831.700	909.100	1269.600
Other Income	7.500	2.500	5.300
Total Income	839.200	911.600	1274.900
Total Expenditure	708.400	765.300	1084.700
Operating Profit	130.800	146.300	190.200
Interest	30.700	35.200	34.900
Gross Profit	100.100	111.100	155.300
Depreciation	7.000	7.000	7.300
Tax	0.000	0.000	14.800
Reported PAT	93.100	104.100	133.200

KEY RATIOS

Year	31.03.2007 [6 months]	30.09.2006 [18 months]	31.03.2005
Debt-Equity Ratio	3.32	10.08	0.00
Long Term Debt-Equity Ratio	2.75	6.69	0.00
Current Ratio	4.84	2.26	1.23
TURNOVER RATIOS
Fixed Assets	6.75	4.24	1.75
Inventory	5.06	4.21	2.22
Debtors	6.88	3.52	1.16
Interest Cover Ratio	3.88	2.32	1.10
Operating Profit Margin(%)	15.07	12.50	22.98
Profit Before Interest And Tax Margin(%)	14.05	10.90	19.12
Cash Profit Margin(%)	11.45	7.78	5.63
Adjusted Net Profit Margin(%)	10.43	6.18	1.78
Return On Capital Employed(%)	24.94	0.00	10.42
Return On Net Worth(%)	72.45	0.00	13.71

LOCAL AGENCY FURTHER INFORMATION

The Director presented this Fifteenth Annual Report along with the Audited Accounts for the year ended March 31, 2007, (6 months). The Company in the year passed by has demonstrated tremendous growth and capitalized on its strength and strategy of turning around and put the Company on a never ending growth path in a short span of one year.

Subject presently has highest market capitalization amongst all Cables companies in the country. Their strategic investments in Power Infrastructure and Transformers will not only capitulate the company in the league of large power equipment suppliers but will change the face of Indian Power Equipment Industry. They are the second largest conductors manufacturer and are set to be the Third largest Transformers manufacturing group and with their expansions in HT and LT power cables going on stream, they shall be Second largest in that segment too. 

FINANCIAL RESULTS: 

The Company's turnover has grown from Rs.2412.404 millions (18 months) to Rs. 1420.013 millions (6 Months) a growth of over 56%, which the profit has leapfrogged from Rs. 100.800 millions (annualized) to Rs.188.109 millions (6 months operation period being annualised) over the same period, which indicates an increase of 86.62% and sincere efforts of the management of the Company to maintain the margins in the testing time.

Following table speaks voluminous about the performance: 

[Rs. in millions]

Particulars	2006-2007 [6 months ]	2005-2006 [18 months ]	2004-2005 [6 months ]	2003-2004 [18 months ]
Income	1420.013	2412.404	310.962	523.770
Expenditure	1221.130	2106.112	233.431	504.278
Profit BIDT	198.883	306.292	77.550	19.492
Interest	47.658	115.316	58.490	187.508
Depreciation	13.363	39.176	13.029	39.408
Net profit	137.638	151.271	6.031	[207.400]
Share Capital	155.202	142.702	135.202	135.202
Reserves	383.193	276.943	40.812	48.686
EPS (Rs.)	0.886	1.060	0.045	[1.534]

The important performance ratios are as under: 

[Rs. in millions]

Particulars	2006-2007 [6 months ]	2005-2006 [18 months ]	2004-2005 [6 months ]	2003-2004 [18 months ]
Gross Profit Margin (%)	1.402	1.270	2.494	0.372
Assets Turnover (times )	0.072	0.162	0.023	0.044
Interest Coverage (times)	0.417	0.266	0.133	0.010
Earning Per shares (diluted) Rs.	0.886	[1.356]	0.045	[1.534]

GROWTH PLANS IN EXISTING BUSINESS: 

HT CABLES-132 KV PROJECT: 

The Company its setting up a Green Field Project to manufacture HT Power Cables in 11 KV to 132KV range, 2000 Kms at an estimated cost of Rs. 300.000 millions. The project has been designed on CCV line Technology which is being procured from Scholz, Germany and the Testing lines from China. The project is located on a 16 acre premises near existing plant. The plant is expected to be in operations before March 31, 2008. 

LT CABLES-15000 KMS EXPANSION PROJECT: 

The Company's existing LT Power Cables facility can manufacture upto 5500 kms per annum. With the grown demand of Specialty Cables such as Aerial Bunch Cables and Fire Retardant Cables, the Company is proposing to invest Rs. 380.000 millions in setting up a very large LT cables facility at the existing site. The proposed expansion will go on stream in three phases by June 2008. 

STRATEGIC INVESTMENTS: 

EPC CONTRACTS-TURNKEY PROJECTS: 

The Company started a Turnkey Project - EPC Contracts business in August 2006. On completion of one year the division has grown to about 500 persons team with three large ongoing projects from Electrifications under RGGY Scheme in Baroda. Anand and Bhavnagar Districts of Gujarat, with another 9 projects lined up, the EPC Business of the Company is expected to grow substantially. The Company has committed Rs. 250 million for this division, 

TRANSFORMER BUSINESS: 

The Company has made rapid strides in Power Infrastructure Business and has leadership position in Cables and Conductors segment along with the turnkey business. Its long term vision of being an integrated power infrastructure meant an investment in Transformers business. The Company acquired Western Transformers in March 2007 and Apex Electrical Limited., in June 2007. The combined capacity of Apex and Western along with the group companies of Apex comes to 12,500 MVA making capacities in the top 5 Transformer manufacturers in the country. 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT: 

Introduction: 
The objective of this report is to present the Management's perception of various developments in the business environment, challenges and opportunities before the Company as well as to provide an analysis of the Company's performance. This report also summarizes the Company's internal control measures and significant initiatives taken by the Company to respond to such opportunities and challenges. It should be read in conjunction with the Directors' Report to the members, Financial Statements and Notes forming part thereof. 

Macro Economic Scenario: 

Indian economy continued to perform well with real GDP growth of 8% in 2005-06 and remained one of the fastest growing economies in the world.

Many of the economic parameters remain strong and positive. Industrial growth has been sustained at 9%. Total exports from the country have crossed the US$100 billion mark. However inflation, primarily due to the impact of soaring oil prices, has also been keeping pace despite efforts put in by the Government to contain the same. 

There is also tremendous interest in India the world over, as a destination of 'choice' for Investment and trade. The strong economic fundamentals, the growing purchasing power are the two factors which are contributing towards this attractiveness. However there is one uniform concern expressed at every forum, namely the lack of adequate and sustained investment in improving the crumbling infrastructure including ports, power, roads, civic amenities etc. The political compulsions did impose restrains on the government and contributed in a major way to the failure of decisive action. Unfortunately, the situation does not seem to be any different in the years to come. It is very obvious that only time-bound substantial investment by the central and State Governments along with active Public private Partnerships will help to correct this situation and provide the underlay to sustain the economic and social growth. 

Investment Argument: 

Investments to drive demand growth: 

US$100 bn investment coming in power generation, transmission, distribution, rural electrification, upgrading of existing distribution networks, industrial capacity expansion, housing, and construction would drive demand growth for power cables in India, Further any increase in investments incurred in distribution would increase cables demand significantly. They believe that the industry is poised for demand growth on the back of improved investment scenario in the country. 

All capacities operating at near optimal operating rates: 

While cables are sold in kilometers, its production is limited to the metal drawing capacity of the plant~ They understand that most of the plants in the country are operating at nearly optimal capacity utilization levels (80-85%), which limits the players' ability 'to cater to huge demand growth. 

Industry Background: 

Capital formation is 'driving demand for various products one of them being cables. Cables are required in almost every new construction be it a house, factory, power plant, IT park, etc. Beyond this, demand from power sector for laying new and upgrading existing power distribution network across the country would drive demand growth for cables. 

Types of Cables: 

Cables are of two types conductors and cables. Conductors are bare open non-insulated cables, which are used to wheel high-tension power. Then come power cables, which are further segregated into high-tension, medium-tension, and low-tension cables. Broad categories of cables are: 

Products: 

· XLPE insulated cables:   Voltage grade: From 1 KV up to 66 KV 

· PVC insulated cables:   LT Power Cables up to 1.1 KV Power Cable up to 11 KV and Control Cable 

· Rubber insulated cables:  TRS Flexible Cables, Welding Cables, and HT Cables and Collery Cables 

Speciality Cables: 

Fire Resistance Low Smoke Cables (FRLS) Industry Flexible Multicore Round Cables, Mining and Shielding Cables 

Demand Drivers:

Rising Demand for cables comes from the following sectors: 

·  Across the board increase in investment to drive demand for cables:  

· Industrial capex (on construction of new plants and factories) 

· Power generation, transmission, and distribution APDRP and upgradation of existing networks

· Housing

· Construction of IT/ITES complexes, malls, multiplexes, etc.

They deal with each of the major consuming sectors in detail. 

Industrial investment: 

Increasing capacity utilization levels and aggressive capex plans by all major companies shall drive demand for cables:

Industrial investment coming in form of factories and buildings and other electrical equipments and machinery would require power cables be it high-tension or medium-tension or low-tension. This would drive demand for power cables in industrial sector, going forward. 

Industrial capex is picking up on the back of increasing industrial production with revival in economy. 

They have seen various companies operating on optimal capacity utilization. 

Rising industrial production coupled with positive outlook for manufacturing sector going forward and companies operating at optimal capacity utilization levels, would drive capex plans in industrial sector.

Various companies have already announced ambitious expansion plans and many would follow suit. 

Rising Investment plans of corporates would drive demand for power cables from industrial sector. 

High power generation targets in 11th plan: 

Planning commission and Kohli Committee have pegged aggressive investment targets in power generation in 10th and 11th plans. 

From the table above, total investment in power generation in 11th plan is pegged at around Rs 2,488 bn. 

To result in higher demand for power cables: 

In power generation high-tension cables and control and instrumentation cables are required. Cables account for nearly 3-3 1/2 percent of total project cost- This means, for every mega watt of generation capacity added, demand for power cables would be around Rs 1.2 to 1.4 mn. 

They have assumed that 2% of the project cost is cables, which translates into cable demand of Rs 27.4 bn: 

Therefore, if India has to add nearly 62,000 MW of power generation capacity in 11th plan, then cables demand would be Rs 74.7 bn. They have assume a demand of cables to be 1% which is a demand of Rs 27.4 bn. 

Investment in transmission to increase at a faster pace: 

Investment in transmission is pegged at Rs 695 bn in 11th plan: 

Investment in transmission is required for evacuating power, from the power plant to the grid and also for augmenting inter regional grid network in the country. Beyond this, regional and state level grid network are also being built. 

Table: Investment in transmission in India: 

10th Plan 11th Plan Total 

Centre 241 283 496 State 260 300 560 Private 97 112 209 Total 571 695 1,265 

... Boosting demand growth of cables: 

Demand for cables from transmission sector is expected to be around Rs 25.3 bn: 

In transmission, major chunk of demand is for transmission towers and conductors. Cables requirement is pegged at around 3-3 Y2 percent,. Kohli Committee Report has pegged -investment - in transmission at around Rs 700 bn. They understand that this investment plans are again quite conservative, because the thumb rule for investment in transmission is Rs 20.000 millions for every mega watt of capacity added. So, if 62,000 MW of power generation   capacity is added, then investment in transmission could be around Rs 1,244 bn. Accordingly, demand for cables would increase commensurately. They have assumed demand of cables at 2% of investment, which is Rs 25.3 bn. 

Distribution to attract highest investment: 

Distribution and rural electrification would generate investment of Rs 1100 bn, and further demand coming from APDRP is a major demand driver: 

Distribution is the backbone of all power sector reforms in the country.

This has been a neglected area and here again the investment is pegged at around Rs 500 bn in 11th plan. 

They expect this investment to pickup rapidly with proper implementation of The Electricity Act, which would result in setting up of new networks and replacement of existing networks. 

To result in demand for cables: 

Distribution is the largest consumer of power cables, as distribution is the only place where huge quantum of cables is consumed. The share of power cables in total outlay is around 30-40%. They have assumed cables demand to be Rs 12.5% of distribution spending, which is equal to Rs 137.5 bn. 

Ambitious capex plans make railways a major spender: 

Railways plans to invest Rs 1,170 bn in modernization, safety, and new lines, which includes investment in signaling, which would result in demand for cables: 

Indian Railways have embarked on aggressive plans to expand and modernize its network. Indian railway plans to lay railway line costing around Rs 780 bn. Also a sum of Rs 220 bn has been allocated for freight corridor.

Further an amount of Rs 170 bn has been allocated to Special Railway Safety Fund (SRSF) for upgrading rolling stock, signaling and fault locating cables, etc. 

30-40% of signaling capex is spend on cables. Also nearly 10-15% of SRSF would be allocated for signaling. Also in normal projects nearly 10% of the project cost would be signaling. This translates into demand for cables of around Rs 117 bn. 

Real estate boom makes cables sector bloom: 

US$10 bn real estate and housing sector is growing at a around 20-25%. Going forward, they expect real estate sector to continue its growth on the back of rising demand for residential property from increasing number of nuclear families and easy availability of housing loans. 

IT and ITES sectors are growing, which is resulting in development of IT parks and development centers. This is giving further boost to Capital formation in service sector infrastructure.  

Real estate projects require medium tension and electrical cables, and with construction activity on an upturn, demand for cables would rise: 

In real estate, low-tension cables called housing wires are used extensively, Consumption of housing wires is around 2-2.5% of total Cost of the project. With housing sector growing, they expect demand for housing wires to grow. Thereafter, the demand for cabling and LAN cables would grow in commercial buildings and TV cables in case of housing complexes. These all factors would drive demand for cables. They have assumed that the demand from this segment would be 1% of investments, which is Rs 2.3 bn. 

OTHER INFORMATION:

Contingent Liabilities :

a. Letter of Credit opened in favor of suppliers pending execution as of 31^st March, 2007 is Rs. Nil millions (previous year Rs nil millions).

b. Outstanding Bank Guarantees as of 31^st March 2007 is Rs 77.150 millions, as all the bank guarantees are against 100% margin no liability is expected to accrue.

c. Income tax demands being in appeal not provided for Rs. NIL millions (previous year Rs Nil millions).

d. Sales Tax Deferment Loan : As on the date of balance sheet, the Company has a sales tax deferment loan of Rs. 0.931 millions, out of which Rs. 80.900 millions relates to period up to 2006, and Rs. 12.200 millions being dues payable in 2006-2007. The Company participated in Sales Tax Samadhan Scheme 2007 of Govt. of Gujarat and made a one time payment of Rs. 93.100 millions, clearing all Sales Tax payable till 31-3-2007, under The Scheme all dues and disputed matters also stand settled and there are no contingent liabilities on Sales Tax for period ended 2007.

e. Claims against the Company not acknowledged as debts Rs. 18.240 millions (Previous year Rs 19.248 millions)

2. Notes to Accounts:

(a) Share Capital During the current financial year, the share capital of the Company went through changes to finance the One Time Settlement with Banks.

Strategic Investor Clearwater Capital Partners (Cyprus) Limited. were allotted 2500000 Compulsorily Convertible FCD at a Face Value of Rs. 10/- with a premium of Rs. 85/- per convertible debenture . Out of the said FCD, they

have converted 50% amount into 1250000 Equity Shares @ Rs. 10/- per shares.

Event occurred after the Balance sheet Date:

Clearwater Capital Partners (Cyprus) Limited. exercised their option of conversion of balance FCD of 1250000 into Equity Shares. With the balance portion conversion the entire FCD issued to them is fully converted into Equity Shares. ® Corporate Body namely Brescon Corporate Advisors Limited. were issued 150000 number of Equity Warrants at a face value of Rs. 10/- per warrant with a premium of Rs. 85/- with a maturity of 18 months, were converted into Equity Shares.

(c) Loans

Secured Loans:

(1) Non Convertible Debentures (NCD) of Rs. 685.000 millions extended by the Clearwater Capital Partners (India) Private Limited are secured by way of English Mortgage of Company's property located at village Haripura, Vadodara and Equitable Mortgage of Company's properties located at village Vadadala and Village Kharadparat. The NCDs have been raised @ 10% p.a. fora period of 5 years and subsequently variable with GOI Sec rate with a fixed rate of 10%. The average borrowing rate for GOI Sec rate during the year for T 364 days was @ 7.5244%

p.a.

(2) During the year, the Company has raised Rs 400.000 millions from Clearwater Capital Partners (India) Private. Limited. as Short Term Working Capital at a rate of 10% per annum. Subsequently after 31st March, 2007, the Company further received Rs. 200.000 millions as Short Term Loan as balance portion from the Clearwater Capital Partners (India) Private Limited.

Unsecured Loans:

Sales Tax Deferment loan as on 31-3-2007 stands at Rs 93.100 millions. However taking advantage of the Sales Tax Samadhan Scheme 2007, the Company has paid off the liability @ Rs 80.900 millions.

Investment in Partnership Firm:

Subject have become partner in the Western Transformers having share of 90% with effect from 9th day of March 2007.

FIXED ASSETS:-

· Land and site Developments

· Building

· Plant and Machinery

· Electrical Installation

· Furniture and Fixture / Equipments

· Vehicles

· Other assets

WEBSITE DETAILS:

Diamond Power Infrastructure Limited formerly known as Diamond Cables Limited was established in 1970. Subject is India's foremost transmission and conductor manufacturer; having commenced operations in Vadodara, Central Gujarat with a small facility for manufacturing traditional ACSR conductors.

Innovator Par Excellence

The company has been a constant innovator and has introduced several new products in India, like Aluminium Alloy conductors in 1988 which changed the face of Indian conductors industry, to the extent that the ACSR industry is now virtually extinct in India. They were the first proud recipient of the BIS Mark for the product in India

The company introduced Aerial Bunched Cables (ABC), which are made by a combination of Alloy conductors, Aluminium conductors and polyethelene insulated conductors. This product has been a boon to a developing country like India

The company was the first conductor manufacturer in Asia to set up its own alloy rod mill, having mastered the art of alloying. The company products are both high quality and cost effective Diamond introduced several production technologies such as inline solution heat treatment, AC drives on wire drawing operations and several other innovative production related technologies

The company 's constant urge for innovation and excellence made it the first conductor manufacturer in the world to implement SAP ERP Systems, as far back as 1996

Unmatched Growth

The company has been rated as one of the fastest growing and most profitable Indian cables company, in the annual survey of IEEMA in 2003. Capitalizing on its background and vast experience, further backed up by strong relationships with buyers in the power equipment industry, subject has transformed itself from being a conductor manufacturer to

· Conductor Plant in 1971

· LT cables manufacturer in 1995

· Setting up a Rod Mill in 1999

· Setting up EPC Business in 2006

· Acquired Western Transformers in 2007

· Acquired Apex Electricals in 2007

· HT and Cables plant in 2007

· Transmission tower plant in 2008

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.40.18
UK Pound	1	Rs.79.66
Euro	1	Rs.62.92

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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