MIRA INFORM REPORT

Report Date :

31.07.2008

IDENTIFICATION DETAILS

Name :	BGR ENERGY SYSTEMS LIMITED
Formerly Known As :	GEA ENERGY SYSTEM INDIA LIMITED
Registered Office :	A - 5, Pannamguda Industrial Estate, Ramapuram Post, Sullrpet Taluka, Nellore District – 524401, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	18.02.1985
Com. Reg. No.:	01-5318
CIN No.: [Company Identification No.]	U40106AP1985PTC005318
TAN No.: [Tax Deduction & Collection Account No.]	HYDG01305D
Legal Form :	Public Limited Liability Company. The company shares are listed on the stock exchanges.
Line of Business :	Leading supplier of Tube Cleaning System and Debris Filter on turnkey basis for Power and Desalination Plants worldwide.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 3360244
Status :	Very Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Their trade relations are fair. 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 :	A - 5, Panamguda Industrial Estate, Ramapuram Post, Sullrpet Taluka, Nellore District – 524401, Andhra Pradesh, India
Tel. No.:	91-4119-248249
Fax No.:	91-4119-248359 / 248249
E-mail :	gea@vsnl.com
Website:	http://www.bgrcorp.com
Corporate Office :	443, Anna Salai, Teynampet, Chennai – 600018, Tamil Nadu, India
Tel. No.:	91-44-24335958/24334940/24326171
Fax No.:	91-44-24338775/24360576
E-Mail :	bgr@md4.vsnl.net.in
Website:	http://www.bgrcorp.com
Regional Office :	Domestic Offices New Delhi # 48, Okhla Industrial Estate, Phase III, New Delhi - 110 020, India Tel. No. : 91-11-26932327 / 26932473 Fax No. : 91-11-26318019 E - mail : geadelhi@vsnl.net Mumbai # 25 E, Lorette Ville, Santacruz West, Main Avenue, Mumbai - 400 054, Maharashtra, India Tel. No. : 91-22-26492575 Fax No. : 91-22-26497404 E - mail : geactbom@vsnl.net Howrah No 9, Block - ED, Sukaanta Aabasaan, 193, Andul Road, Howrah - 711 109 Tel. No. : 91-33 - 26680710 E - mail : debajyoti@vsnl.net Overseas Offices Germany Schmitz Reinigungskugeln GmbH An der Schaferecke 2a, D-31188, Holle, Germany Malaysia BGR Enertech Sdn. Bhd. Kuala Lumpur, Malaysia
Factory :	304 / 305 Anna Salai Teynampe, Chennai – 600018, Tamilnadu, India

DIRECTORS

Name :	Mr. B. G. Raghupathy
Designation :	Chairman and managing Director – In Charge of strategic and Corporate management
Address :	60 [Old No. 100], IV Street, Abhiramapuram, Chennai – 600018, Tamilnadu, India
Date of Birth/Age :	28.09.1952 / 54 years
Qualification :	B. Sc
Experience :	33 years
Date of Appointment :	18.02.1985
Election Commission Identity Card No.	TN/03/013/0021350
Nature of employment:	Contractual
Last Employment:	Chief Executive – Introls
Name :	Mr. Tony Adam
Designation :	Managing Director
Address :	No. 10 [Old No. 51], 3^rd Main Road, Abhiramapuram, Chennai – 600018, Tamilnadu, India
Date of Birth/Age :	12.02.1958
Date of Appointment :	06.12.2002
Name :	Mr. S. Rathinam
Designation :	Director – Finance, Head Finance and Accounts
Address :	No. 19, Rajeswari Apartment, 58, Bakthavatchalam Salai, Mylapore, Chennai – 600004, Tamilnadu, India
Date of Birth/Age :	06.08.1950 / 56 years
Qualification :	B.Sc, FCA
Experience :	30 years
Date of Appointment :	06.05.1992
Nature of employment:	Contractual
Last Employment:	Joint General Manager (Finance) – Tamil Nadu Industrial Explosives Limited
Name :	Mr. V. K. Gupta
Designation :	Director
Address :	A – 2 / 183, Safdurjung Enclave, New Delhi – 110029, India
Date of Birth/Age :	06.12.1953
Date of Appointment :	06.12.1993
Name :	Mr. G. Radhakrishnan
Designation :	Director
Address :	140 B – 6, Vembuli Amman Street, Navalpur, Ranipet - 632402, Tamilnadu, India
Date of Birth/Age :	01.06.1950
Date of Appointment :	06.12.1993
Name :	Mr. S. K. Sridhar
Designation :	Director
Address :	No. 38, Robertson, R. S. Puram, Coimbatore – 641002, Tamilnadu, India
Date of Birth/Age :	05.10.1962
Date of Appointment :	30.06.1989
Name :	Mrs. Sasikala Raghupathy
Designation :	Director
Address :	60 [Old No. 100], IV Street, Abhiramapuram, Chennai – 600018, Tamilnadu, India
Date of Birth/Age :	14.05.1956
Date of Appointment :	20.08.1985
Election Commission Identity Card No.	TN/03/013/021710
Name :	Mr. V R Mahadevan
Designation :	Whole time Director Incharge of Infrastructures business, Technologies and Human Resources.
Date of Birth/Age :	48 years
Qualification :	BE
Experience :	25 years
Date of Appointment :	01.08.1987
Nature of employment:	Contractual
Last Employment:	Project Manager Best and Crompton Limited

KEY EXECUTIVES

Name :	Mr. R. Ramesh Kumar
Designation :	Secretary
Address :	W – 3, North Main Road, Anna Nagar West Extension, Chennai – 600101, Tamilnadu, India
Date of Birth/Age :	15.05.1962
Date of Appointment :	20.11.1992
Name :	Mr. A Swaminathan
Designation :	Chief Executive Officer – Power Projects
Name :	Mr. Major H L Khajuria
Designation :	Chief Executive Officer - Environmental Engineering
Name :	Mr. G Suresh
Designation :	Chief Executive Officer - Captive power
Name :	Mr. V Balakrishnan
Designation :	Electrical Projects
Name :	Mr. G Mahadevan
Designation :	Chief Executive Officer - Energy
Name :	Mr. S Llanchezhiyan
Designation :	Chief Executive Officer - Air FN Cooler
Name :	Mr. Ramesh Kumar
Designation :	Chief Executive Officer - President – Corporate Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2007

Category Code	Names of Shareholders	No. of Shares	Percentage of Holding
(A)	Shareholding of Promoter and Promoter Group
(1)	Indian
(a)	Individual/ Hindu undivided family	19712160	27.38
(b)	Bodies corporate	272484400	37.85
(c)	Director	11579120	16.08
(B)	Public Shareholding
(1)	Institutions
(a)	Mutual Funds/ UTI	2337964	3.25
(b)	Financial Institutions/ Bank	946325	1.31
(c)	Venture Capital Fund	14177	0.02
(d)	Insurance Companies	411251	0.57
(2)	Non-Institutions
(a)	Bodies Corporate	403269	0.56
(b)	Individual
(l)	Individuals – i) Individual shareholders holding nominal share capital up to Rs.0.100 Million	3292568	4.58
(ll)	ii) Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	262737	0.36
(c)	Any other (specify)
(c-i)	Clearing Member	14	0.00
(c-ii)	Non Resident Indians (Repat)	10059	0.01
(c-iii)	Non Resident Indians (Non Repat)	1788	0.00
(c-iv)	Foreign Companies	5777454	8.02
(c-v)	Overseas Body Corporate	14	0.00
	Grand Total (A) + (B)	72000000	100
Statement showing shareholding of persons belonging to the category “Promoter and Promoter Group”
Sr. No.	Name o Shareholders	No. of Shares	Percentage of Holding
1	B.G. Raghupapthy	19711800	27.38
2	Sasikala Raghupapthy	11577600	16.08
3	Arjun Securities Private Limited	4540320	6.31
4	Vani Securities Private Limited	5428080	7.54
5	Priya Securities Private Limited	8640000	12.00
6	Swarna Leasing Private Limited	8640000	12.00
7	B.G. Raghupapthy	360	0.00
8	Sasikala Raghupapthy	1520	0.00
	Total	58539680	83.31
Statement showing Shareholding of persons belonging to the category “Public” and holding more than 1% of the total number of shares
Sr. No.	Name o Shareholders	No. of Shares	Percentage of Holding
1	CVCIGP II Employee Rosehill Limited	1028735	1.43
2	CVCIGP II Client Rosehill Limited	1836822	2.55
3	Reliance Capital Trustee Co. Ltd A/c. RE	1489544	2.07
	Total	4355101	6.05
Statement showing details of locked-in shares
Sr. No.	Name o Shareholders	No. of Shares	Percentage of Holding
1	B.G. Raghupathy	19711800	27.38
2	S.K. Sridhar	4320	0.01
3	Sasikala Raghupathy	11577600	16.08
4	Arjun Securities Private Limited	4540320	6.31
5	Vani Securities Private Limited	5428080	7.54
6	Priya Securities Private Limited	8640000	12.00
7	Swarna Leasing Private Limited	8640000	12.00
8	CVCIGP II Employee Rosehill Limited	1028735	1.43
9	CVCIGP II Client Rosehill Limited	1836822	2.55
10	B G Raghupathy	360	0.00
11	R. Sasikala	1520	0.00
12	Gautam Suresh Nayak	1440000	2.00
13	Gautam Suresh Nayak	1111	0.00
14	Gautam Suresh Nayak	222	0.00
15	Gautam Suresh Nayak	1111	0.00
16	Gautam Suresh Nayak	444	0.00
17	Gautam Suresh Nayak	11111	0.02
18	Gautam Suresh Nayak	444	0.00
	Total	62864000	87.31

BUSINESS DETAILS

Line of Business :

Leading supplier of Tube Cleaning System and Debris Filter on turnkey basis for Power and Desalination Plants worldwide

Product Description	Item Code
On Load Condenser, Tube Cleaning System	84.79
Debris Filter	84.21
Air cooled Heat Exchanger	84.19
Dearator	84.02
Oil and gas equipments.	35.49

Imports from :

Europe and Far East

Terms :

Purchasing :

L/C, D/A and D/P

PRODUCTION STATUS (as on 31.03.2007):-

Particulars	Unit	Installed Capacity	Actual Production
Tube Cleaning System	Nos	150	149
Debris Filter	Nos	150	96
Air Cooled Heat Exchangers	No of Bundles	900	483
Deaerators	Nos	30	15
Oil And Gas Equipment	Nos	NA	50

GENERAL INFORMATION

No. of Employees :

300

Bankers :

· State Bank of India, Settipalli Branch

· State Bank of Hyderabad

· State Bank of Tranvancore

· State Bank of Patiala

· State Bank of Bikaner and Jaipur

· State Bank of Mysore

· State Bank of Indore

· Industrial Development Bank of India

· UCO Bank

· Indian Bank

· Corporation Bank

Facilities :

SECURED LOAN	31.03.2007 (in millions )
Working Capital Loan From Banks	2230.700
Fixed Assets Loans	87.118
Term Loan From Bank	70.612
Total	2388.430

UNSECURED LOAN	31.03.2007 (in millions)
IFST	30.746
ICICI Bank Limited	6.668
Others	11.285
Total	48.699

Banking Relations :

Good

Auditors :

Name:

Manohar Chowdhry and Associates

Chartered Accountants

Address:

No.21, Main Street, Dr. Thirumurthy Nagar, Nungambakam, Chennai – 600034, Tamil Nadu

Tel. No.:

91-44-2827278

Internal Auditors

· M/s J V Associates

Cost Accountants and Public Auditors , Chennai

· M/s B B Naidu and Company and Company

Chartered Accountants, Chennai

· M/s V Krishnan and Company

Chartered Accountants , Chennai

Associates/Subsidiaries :

v Progen Systems and Technologies Limited

v Pragati Computers Limited

v Schmitz Reinigungskugeln GmbH, Gildesheimer Str. 7, 31188 Holle, Germany.

v Sasikala Estate Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs. 10/- each	Rs.150.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10800000	Equity Shares	Rs. 10/- each	Rs.108.000 millions

Notes:

Of the above 10650000 Equity Shares of Rs. 10/- each were allotted as fully paid up bonus shares by capitalization of profits.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007 [18 months]	30.09.2005 [12 months]
SHAREHOLDERS FUNDS
1] Share Capital		108.000	108.000
2] Share Application Money		0.000	0.900
3] Reserves & Surplus		732.061	378.008
4] (Accumulated Losses)		0.000	0.000
NETWORTH		840.061	486.908
LOAN FUNDS
1] Secured Loans		2388.430	804.117
2] Unsecured Loans		48.699	59.212
TOTAL BORROWING		2437.129	863.329
DEFERRED TAX LIABILITIES		12.501	23.895
TOTAL		3289.691	1374.132
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		305.954	250.482
Capital work-in-progress		30.188	5.531
INVESTMENT		51.069	49.298
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	260.386	157.722
	Sundry Debtors	3668.002	1164.545
	Cash & Bank Balances	921.140	180.573
	Other Current Assets	50.716	35.739
	Loans & Advances	882.916	269.231
Total Current Assets		5783.160	1807.810
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	2618.849	646.009
	Provisions	261.831	96.699
Total Current Liabilities		2880.680	742.708
Net Current Assets		2902.480	1065.102
MISCELLANEOUS EXPENSES		0.000	3.719
TOTAL		3289.691	1374.132

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007 [18 months]	30.09.2005 [12 months]
Sales Turnover		7751.418	2889.970
Other Income		3.379	2.242
Total Income		7754.797	2892.212
Profit/(Loss) Before Tax		604.993	186.933
Provision for Taxation		289.207	[34.170]
Profit/(Loss) After Tax		315.786	221.103
Export Value		969.949	504.435
Import Value		312.142	329.269
Expenditures :
	Cost of Goods Sold	5551.664	2059.780
	Manufacturing Expenses	529.371	252.155
	Administrative Expenses	678.280	296.431
	Interest	174.378	57.388
	Increase/(Decrease) in Finished Goods	[22.301]	[35.180]
	Depreciation & Amortization	81.263	27.589
	Other Expenditure	157.149	47.116
Total Expenditure		7149.804	2705.279

KEY RATIOS

Year	31.03.2007 [18 months]	30.09.2005 [12 months]
Debt-Equity Ratio	2.49	1.64
Long Term Debt-Equity Ratio	0.33	0.50
Current Ratio	1.16	1.32
TURNOVER RATIOS
Fixed Assets	11.88	9.39
Inventory	24.86	23.02
Debtors	2.17	3.14
Interest Cover Ratio	3.25	3.21
Operating Profit Margin(%)	12.17	10.03
Profit Before Interest And Tax Margin(%)	11.13	9.11
Cash Profit Margin(%)	6.03	5.37
Adjusted Net Profit Margin(%)	4.99	4.45
Return On Capital Employed(%)	25.22	24.17
Return On Net Worth(%)	39.41	31.13

LOCAL AGENCY FURTHER INFORMATION

HISTORY

The company was incorporated on 18th February 1985 as GEA Energie Systems India Private Limited. Mr.B G. Raghupathy was promoted the company. October 1986, the company name was changed to GEA Energy System (India) Private Limited. December 1993, the company status was changed to a public limited. June 2007, the company name was changed to BGR Energy Systems Limited. 

In 1987, the company has commenced operations through a joint venture with GEA Energietechnik Gmbh, Germany. The company has supplied tube cleaning systems and debris filters for nuclear and thermal power plants and established first manufacturing facility at Pannamgadu, Andhra Pradesh in February 1987. Between 1987 to 1993, the company has supplied products and allied services to a variety of domestic and international client's collaboration with GEA Energietechnik Gmbh, Germany. 

In 1993, GEA Energietechnik Gmbh, Germany divested its stake to promoter and members of Promoter Group. In 1994, with the object of expanding the product portfolio, the company was acquired a company, Schmitz Gmbh in Germany. This company was engaged in the business of manufacturing sponge cleaning walls. In 1999, the company has developed the capability to manufacture these components through Schmitz India Private Limited, a Promoter Group Entity. The company was transferred entire holding in Schmitz Gmbh to Schmitz India Private Limited pursuant to an agreement dated August 1, 2007, with effect from June 30, 2007. 

Since 1993, the company has entered into a series of joint ventures and technical collaborations to increase the portfolio of products. This included a collaboration for air cooled heat exchangers with GEA Btt, France in 1994; a license agreement with GEA Spirogills Limited UK for the manufacture of welded finned tubes through its subsidiary Progen Systems and Technologies Limited in 1994; an arrangement with GEA Energietechnik Gmbh for the manufacture of cooling systems through GEA Cooling Tower Technologies (India) Private Limited in 1996; and an arrangement in relation to environmental engineering solutions with Crane Environmental Inc, USA in 2000. 

The company has established power projects business in 1997 with the objective of developing power projects. Since 2000, the power projects business commenced the process of providing balance of plant services for captive and independent power projects in India and elsewhere. 

In 2001, the company has commenced operations in the oil and gas sector and developed capabilities in providing packaged compressor solutions in co-operation with Ariel Corporation, USA. 

In May 2003, the company has provided engineering procurement and construction services for a 120MW power plant on a turn key basis in Karuppur, Tamil Nadu and commenced the provision of such services for captive power plants in India in 2006. 

The company has established an electrical projects business which commenced operations in 2003 and provides transmission infrastructure, gas insulated substations and optic fiber networks. 

The company has entered into a business acquisition agreement dated January 2, 2006 with Mrs. V. Girija, Mr. Velpandian Mani, the proprietor and the chief executive officer, respectively, of VP Engineering Consultancy Services, a sole proprietorship engaged in providing piping, design and engineering services. Under this agreement, the company has bought certain business assets of VP Engineering Consultancy Services including contracts, orders, work in progress, submitted bids and offers.

YEAR IN RETROSPECT AND OPERATIONS REVIEW: 

The period ended 31st March, 2007 has been a watershed in the progress of the company to become a world class turnkey engineering and project construction company. During the period ended 31st March, 2007, the company has achieved an all time high turnover of Rs.7751.400 millions which accounts for growth of 79% on annualised basis. It is heartening to note that the pre-tax profit has also grown at 116% on annualised basis. The period has been a historical one during which the company has secured the following prestigious and path breaking contracts. 

a) Balance of Plant and civil works for 500 MW Vijayawada Thermal Power Project of APGENCO valuing Rs. 5788.000 millions.

b) Balance of Plant and civil works for 500 MW Kakatia Thermal Power project of APGENCO valuing Rs. 6948.600 millions.

c) Contract from State Company for Oil Projects, Iraq (SCOP) for design and supply of Gas Processing Complex of KORMOR Gas Field Development project for a value of USD 76.60 Million. This is the major break through in the company becoming a lump sum turnkey (LSTK) contractor in Oil and Gas sector. 

d) Hydro Carbon storage facility for SCOP, Iraq valuing USD 17,884,595. 

e) EPC contract from Tamil Nadu Electricity Board for 92.2 MW gas based combined cycle power project at Valuthur for a value of Rs. 3553.000 millions. 

f) Air Fin Cooler division has secured its ever largest contract from Samir, Morocco for supply of Air Cooled Heat Exchangers for Samir Refinery at Morocco. 

g) Order for supply of Fuel Gas System from Alstom Switzerland for a project in United Kingdom. This is the first order secured by the company with CE marking which opens up entry into European countries for supply of Fuel Gas Systems. 

In the backdrop of robust order booking, the company carries over an order backlog of over Rs.21000.000 millions as of 01-04-2007 including export orders of Rs.4700.000 millions. Having emerged as the lowest bidder, the company is expecting award of contract for Rs.10000.000 millions from MAHAGENCO for Balance of Plant contract for a coal based power project i n Maharashtra The orders on hand compels the company to deliver and achieve a revenue of atleast Rs.16000.000 millions for the year ending 31st March, 2008. 

During the period under review, the company became the first company in India to have secured Balance of Pant contract for a 500 MW coal based power station. The company also secured Category-F Inter-state trading license to trade in power from Central Electricity Regulatory Commission.

The directors wish to state that these developments are of high strategic value and have catapulted the company into a high growth trajectory. The directors are confident of achieving and sustaining these high rates of growth in order booking, turnover and profitability in the years to come. 

On 31st March, 2007, the company has successfully completed the open cycle commissioning of the 330 MW Dholpur gas based power station of RRUVNL on open cycle mode as per contractual schedule. 

PERFORMANCE OF SUBSIDIARIES: 

The company's subsidiary Progen Systems and Technologies Limited which is engaged in the business of manufacture of Welded Finned Tubes and Pressure Vessels for power and process industries has achieved a turnover of Rs.129.044 millions and net profit of Rs. 6.454 millions for the period ended 31st March, 2007. During the year Progen secured a prestigious export order from Proplant, USA. 

The company's fully owned subsidiary Schmitz Reinigungskugeln GmbH has achieved a turnover of Euro 165.063,52 and a profit of Euro 3.599,86. 

Form 8 Particular for creation or modification of charges

Corporation identity number or foreign company registrations number of the company	U40106AP1985PTC005318
Name of the company	GEA ENERGY SYSTEMS [INDIA] PRIVATE LIMITED
Address	Plot No. A 5, Panamguda Industrial Estate, Ramapuram Post, Sullrpet Taluka, Nellore District – 524401, Andhra Pradesh, India
This Form is for	Creation of charge
Type of Charges	Hypothecation
Particular of the charge holder	State Bank of Bikaner and Jaipur Rajaji Salai, Chennai – 600001, Tamilnadu, India E-mail : rschennai@sbbj.co.in
Nature or description of the instrument creating charge	Agreement of hypothecation of goods and assets
Date of the instrument creating charge	09.06.2006
Amount Secure by the charge	Rs. 1200 millions
Brief of the principal terms and conditions and extent and operation of the charge	a] Rate of Interest – 2% Below BPLR with a minimum of 9.25% payable monthly b] Hypothecation of all current assets at Valathur combined cycle gas project c] Personal Guarantee of Mr. B. G. Raghupathy and Mrs. Sasikala Raghupathy
Description of the property charge whether it is a charge on	Stock in trade and book debts
Particulars of the Property charged	First charge on all chargeable current assets relating to 92.20 MW valathur combined cycle gas turbine power project phase II

Corporation identity number or foreign company registrations number of the company	U40106AP1985PTC005318
Name of the company	GEA ENERGY SYSTEMS [INDIA] PRIVATE LIMITED
Address	Plot No. A 5, Panamguda Industrial Estate, Ramapuram Post, Sullrpet Taluka, Nellore District – 524401, Andhra Pradesh, India
This Form is for	Creation of charge
Type of Charges	Hypothecation
Particular of the charge holder	Industrial Development Bank of India Limited 115 Anna Salai, Saidapet, Chennai – 600015, Tamilnadu, India E-mail : siva@gea-india.com
Nature or description of the instrument creating charge	Deed of hypothecation
Date of the instrument creating charge	18.05.2006
Amount Secure by the charge	Rs. 200 millions
Brief of the principal terms and conditions and extent and operation of the charge	1] Interest @10.25% P.A. 2] Hypothecation of current assets of the company on second charge basis 3] The Entire amount OIS repayable in 60 days commencing from the date of disbursement 4] Personal Gurantee of Shri B. G. Raghupathy
Description of the property charge whether it is a charge on	Stock in trade and book debts
Particulars of the Property charged	Hypothecation by way of second charge on all chargeable current asset of the company

Generic Names of Principal Products / Services are as under :

Ø Tube Cleaning System

Ø Air Cooled Heat Exchangers

Ø Deaerator

Business:

v Established in 1985 as joint venture with GEA Energietechnik GmbH, Germany

v Leading supplier of Tube Cleaning System and Debris Filter on turnkey basis for Power and Desalination Plants worldwide

v Market leader in Tube Cleaning System, Debris Filter and Sponge Cleaning Balls

v Over 1000 systems operational in India and abroad

v Quality System to ISO 9001

v Full Fledged Engineering Office with CAD/CAM and after sales services

v Dedicated Manufacturing and Rand D facilities in Chennai, India

v Wholly owned subsidiary for manufacturing complete range of Cleaning Balls

v Has won export Awards every year since 1993

v Regional offices and extensive overseas Agency network to cater to World’s Power and Desalination Market

OTHER INFORMATION:

The company is engaged in manufacture and supply of On Load Condenser Tube Cleaning System, Debri Filters/Separators, Air Cooled Heat Exchangers.

The company has entered into marketing tie-ups with M/s. Hydrotech of U.K. and Cochrane of U.S.A. for Electro Magnetic Water Conditioning System for Descaling application and Deaerators respectively.

The company has obtained approvals from various OEMs/EPCs in Japan, Italy, U.K. and U.S.A. and spread its focus upon Middle East, Japan.

The company has appointed M/s. Sumisho Metalex of Japan as an exclusive agent in Japan.

The company is in trade terms with:

v Siemens, 144, Mahatma Gandhi Road, Chennai 34.

v Aumo India Limited, 39-II, Phase, Peeniya Industrial Area, Bangalore 58.

v Verner Reistaff GmbH, Germany, Post Facil 1151, D 73747 Ostfildern Germany.

FIXED ASSETS:

· Land

· Buildings

· Plant and machinery

· Furnitures and fixtures

· Office Fixtures

· Office equipments

· Electrical Installations

· Vehicles

· Technical Know how

· Development Expenses

Website Details Attached:

Corporate Profile:

The company was promoted by Mr. B.G. Raghupathy in Technical and Financial Collaboration with GEA Energietechnik GmbH, Bochum, Germany. In the year 1987 the company commenced its business for manufacture and supply of Tube Cleaning System, Debris Separator and Cleaning Balls for thermal, nuclear and desalination plants. The company is now a wholly owned closely-held public company.

Over a period of 15 years, the company has grown and become as a multi product, multi location engineering group with proven track record in undertaking high value turnkey engineering contracts in power and process sector industries. The group has interests in the entire range of power sector industries viz., Thermal, Nuclear, Hydro, co-generation, captive and IPP sector.

The group exports its systems and equipment all over the world and has reference installations in USA, Europe, Far East, Middle East, Japan, Australia and South East countries.

The group supplies its equipment and systems to process industries such as refineries, petro chemical and other process industries.

The group has demonstrated its engineering capability in absorbing and assimilating technology from European and American companies and has successful relationship in technology collaboration and strategic alliance with world leaders of the respective technology.

The group has achieved a quantum growth in business and is now emerging as a leading market player in the power, process and infrastructure sector industries in India and with strategic thrust on International markets.

Credentials:

The group practice highest standards of quality of product performance and has uncompromising commitment to achieve total customer satisfaction. Towards this objective, the Company has adopted a Quality Policy which reads:

Quality recognition

The quality management systems of Energy and Air Fin Cooler division of GEA Energy System (India) Limited and Progen Systems and Technologies Limited are "ISO 9001 Certified".

The Air Fin Cooler division has achieved the coveted "U" Stamp ("American Society of Mechanical Engineers") accreditation for its range of products.

Export performance

In the year 1992, GEA Energy System (India) Limited was conferred the "Outstanding Export Performance Award" by Indo-German Chamber of Commerce amongst all the Indo-German Joint Venture companies.

The group companies have so far won seven export awards from Engineering Export Promotion Council of India for their consistent and outstanding export performance.

Certifications / Approvals

· ISO Accreditation from M/s.Lloyds.

· Engineers India Limited.

· IBR

· CCE (Chief controller of explosives)

Fabrication / Fin tube shops approved by Major Engineering consultants and OEM's like Alstom, Bechtel, Larsen and Toubro, Thermax Babcock and Wilcox.

Resources:

Manufacturing facilities spread across Four States in India and marketing offices in Germany and Malaysia.

Total manufacturing facilities with a covered manufacturing area over 5500 sq. Mtrs

CAD/ CAM facilities:

Experienced engineers in the field of mechanical, civil, electrical, control and Instrumentation and infrastructure.

Proven competence in project management and execution of turnkey contracts.

The group has more than 300 experienced engineers in diverse disciplines.

Management Team

· Mr. A. Swaminathan - President - Power Projects Division

· Mr. G. Suresh - President - GEA Cooling Towers

· Major H. L. Khajuria - President - Environmental Engineering Division

· Mr. V. Balakrishnan - President - Electrical Projects Division

· Mr. P.V.N. Sanjay - VicePresident - Energy Division

· Mr. R. Ramesh Kumar - President - Corporate and Company Secretary

· Mr. M. S. Krishnaswamy - Executive Director

Products and Services

Energy Division

· Online Tube Cleaning System

· Debris Separator

· Self Cleaning System/Strainer

· Sponge Cleaning Balls

Air Fin Cooler Division

· Process Coolers

· Finned Tubes

· Radiator and Compressors Coolers

· Tube Bundles

Environmental Engineering Division

· Deaerators

· Membrane Based Water Treatment Plant

· Demineralization Plant

· Effluent / Sewage Treatment and Recycling Plants

· Condensate Polishing Unit

Oil and Gas Equipment Division

· 2/3 Phase Separator Systems / Skids

· Indirect Water Bath Heaters

· Knockout Drums/Scrubbers

· Gas Conditioning, Regulating and Metering Systems

· Filter Separators / Dry Gas Filters

· Pipeline Equipments

Power Projects Division

· Balance of Plant Supply of Equipment and Services

· Independent Power Projects

· Engineering, Procurement and Construction of Power Projects

Infrastructure Division

· Highways

· Bridges

· Turnkey Civil Construction and Contracting

Electrical Project Division

· Turnkey Solutions for

· EHV Substations

· EHV Trasmission  Lines

· Plant Electricals

· GIS Substations

· Automated Meter Reading Solutions for utilities

· BOP works for Hydro Projects

Progen System and Technologies Limited

· Heat Exchangers

· Pressure vessels, Reactors, Columns

· Waste Heat Recovery Modules

· Surface Condensers and HP / LP Heaters

· Process equipments and Boiler components

Govin Engineering and Construction Limited

Engineering and Construction of Large Industrial buildings and Cooling Towers

Pragati Computers Limited

· Personal Computers and Servers

· Software Services

GEA Cooling Tower Technologies (I) Limited . Limited

· Dry Cooling Systems

· Direct Cooling - Air Cooled Condensers

· Wet Cooling Systems

· Induced Draught Cooling Towers

· Natural Draught Cooling Towers

· Hybrid Cooling Towers

Other Details;

Principal Office Divisions	Phone	Fax	Email
Energy Division	91-44-24335958	91-44-24343374	ed@gea-india.com
Airfin Cooler Division	91-44-24334940	91-44-24334935	afc@gea-india.com
Environmental Engineering Division	91-44-24334940	91-44-24320359	eed@gea-india.com
Power Projects Division	91-44-24326171	91-44-24315678	ppd@gea-india.com
Oil & Gas Equipment Division	91-44-24334940	91-44-24334935	oged@gea-india.com
Infrastructure Division	91-44-24335958	91-44-24343374	infra@gea-india.com
Progen Systems and Technologies Limited	91-44-24334940	91-44-4330498	progen@md4.vsnl.net.in
GEA Cooling Tower Technologies (India) Limited . Limited	91-44-24326171	91-44-24338404	gct@vsnl.in
Govin Engineering and Constructions Limited	91-44-24326171 91-44-24327535	91-44-24360576	gecl@vsnl.net.in

Press Release

BGR ENERGY RECEIVES EPC CONTRACT FOR 2 X 600 MW KALISINDH THERMAL POWER PROJECT IN RAJASTHAN

Highlights

Single largest EPC contract of Rs.49000.000 Millions for the company

Will construct Asia’s largest Natural Draft Cooling Towers.

Project secured in international competitive bidding

Project to the complete in 42 month

Chennai, 16^th July, 2008, BGR Energy System Limited (“BGR Energy”) Chennai has secured, perhaps the largest ever EPC contract in the country, for the 2 x 600 MW Kalisindh Thermal Power Project at Jhalwar, Rajasthan from Rajasthan Rajya Vidyut Utpadan Nigam Limited (“PRVUNL” ). This is Greenfield project. The lump sum contract scope include design, Engineering, Supply of boiler, Steam turbine generator and complete balance of plant equipment inclusive of all mechanical, electrical , instrumentation and control system and civil, structure and architecture works, necessary for putting the terminal power station in to operation

PRVUNL called for international competitive bidding for this project and BGR Energy BHEL where qualified. This is a largest EPC contract won by the company. It may recalled that in June, 2008 BGR Energy secured an EPC contract from Tamil Nadu Electricity Board for 1 x 600 MW Power project at Mettur. These successive contracts demonstrate the customer’s confidence in the engineering, project management and execution capacity of BGR energy. This 2 x 600 MW project will be complete will be completed within a period of 42 months

This project will have to Asia’s tallest natural cooling draft towers. These cooling towers will be design and built by the company in house. This project will be a zero discharge power station meting the stringent environmental standards.

ORDER BOOK

The Company’s order book has now with ness more than three fold growth and know stands over Rs.110000.000 Millions with include four BoP contracts of 500 MW and two EPC contract of 600 MW unit and contracts of Oil and Gas Equipment sector projects and order for products.

About BGR Energy System Limited

BGR Energy carries on our business in two segments, the Supply of systems and Equipment and Turnkey Engineering project.

1. Capital Goods – Design, Engineering, Manufacture and Supply of Hi-Tech System and Equipments for the power , oil and Gas, refinery, petrochemical and process industries.

2. Turnkey Engineering Projects – Engineering, Procurement and construction (EPC) and balance of Plant (BOP) contract for power, water and infrastructure project and LSTK contract for oil and gas sector.

Web Details Attached

The Company was originally incorporated in 1985, as a joint venture between GEA Energietechnik GmbH, Germany and our Promoter, Mr. B.G. Raghupathy, to produce and sell On-line Condenser Tube Cleaning Systems, Debris Filters and Rubber Cleaning Balls used in Thermal and Nuclear Power Plants. In 1993 Mr. B.G. Raghupathy and members of his family became the sole shareholders of the Company and began to expand our range of product and services range in the Power and Oil & Gas industries. On June 28, 2007 we changed our name from GEA Energy System (India) Limited, to BGR Energy Systems Limited.

BGR Energy carries on our business in two segments, the Supply of systems and Equipment and Turnkey Engineering project contracting

In the systems and equipment business, the company design, engineer, manufacture, sell and service a range of systems and equipment for the Power, Oil & Gas, Refinery, Petrochemical and Process Industries.

In the Turnkey Engineering project contracting business, the company engineer, manufacture, procure, construct and commission projects in the Power and Oil & Gas sector, wherein we take Turnkey responsibility to supply of a range of equipment and services, including the civil works required for a project and other work as may be required under the contract for such project.

The company executes Turnkey Contracts to supply the Balance of Plant ("BOP") Equipment, Services and Civil works for Power Generation projects, in which we supply, from a single source, the Balance of the plant, i.e. items other than the Boiler, Turbine and Generator. Having successfully executed BOP contracts, we have begun to focus on Engineering, Procurement and Construction ("EPC") contracts, in which we Design, Engineer and Supply all of the equipment required for a Power Plant including the Boiler, Turbine and Generator and Civil works. We are currently executing BOP and EPC contracts tailored to customer demands. We also have an infrastructure business intended to provide construction services and technology oriented projects to the infrastructure sector. The company executes Turnkey Contracts to supply the Balance of Plant ("BOP") Equipment, Services and Civil works for Power Generation projects, in which we supply, from a single source, the Balance of the plant, i.e. items other than the Boiler, Turbine and Generator. Having successfully executed BOP contracts, we have begun to focus on Engineering, Procurement and Construction ("EPC") contracts, in which we Design, Engineer and Supply all of the equipment required for a Power Plant including the Boiler, Turbine and Generator and Civil works. We are currently executing BOP and EPC contracts tailored to customer demands. We also have an infrastructure business intended to provide construction services and technology oriented projects to the infrastructure sector..

The Company consists of seven complementary businesses, including:

• Power Projects business, which provides turnkey EPC and BOP services for coal-based Thermal Power Plants and Gas-based Combined Cycle Power Plants typically over 100 megawatts ("MW"), and which completed its first contract in 2002,
• Captive Power Projects business, which provides Turnkey EPC and BOP services for power plants typically under 100 MW which began operating in 2006,
• Oil and Gas Equipments business, which designs and manufactures gas conditioning & metering skids, storage tanks, pipeline pig launching & receiving systems, gas processing complexes and gas compressor packages related to the oil and gas industry for companies in India and abroad, and which began operating in 2001,
• Air Fin Coolers business, which designs and manufactures Air Fin Coolers which cool process fluids and gases used in the refining, petrochemical, and oil and gas industries, and which began operating in 1994,
• Environmental Engineering business, which designs manufactures and provides Deaerators, Desalination plants, Water treatment plants and Effluent treatment plants, which have application in Power and Process plants and other Industrial plants, and which began operating in 1996,
• Electrical Projects business, which designs supplies Electrical systems and equipment such as Gas Insulated Switchgear (GIS) substations, Optical Fiber Power Ground Wires (OPGW), Extra High Voltage substations and Transmission Lines to Power Stations, Refineries and Petrochemical plants, and which began operating in 2003, and
• Infrastructure business, which is capable of building roads and industrial buildings, and which began operating in 2004.

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.42.47
UK Pound	1	Rs.84.00
Euro	1	Rs.66.14

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--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		72

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