MIRA INFORM REPORT

Report Date :

03.11.2008

IDENTIFICATION DETAILS

Name :	EURO – SOLO ENERGY SYSTEMS LIMITED
Registered Office :	301, Megor Arcade, M G Road, Ghatkopar (East), Mumbai – 400077, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	29.10.2004
Com. Reg. No.:	11-149319
CIN No.: [Company Identification No.]	U31400MH2004PLC149319
TAN No.: [Tax Deduction & Collection Account No.]	MUME05801F
PAN No.: [Permanent Account No.]	AABCE3860C
Legal Form :	A Closely held Public Limited Liability Company
Line of Business :	Manufacturer of Batteries

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 150000
Status :	Moderate
Payment Behaviour :	No Complaints
Litigation :	Clear
Comments :	Subject is a 3 years old company having moderate track. The has incurred a loss during the year 2006-07. Trade relations are fair. No Complaints have been heard against the subject. The company can be considered for small to mediocre business dealings initially.

INFORMATION PARTED BY

Name :	Mr. Mahesh Pokarkar
Designation :	Account/ Finance Manager
Date :	01.11.2008

LOCATIONS

Registered Office :	301, Megor Arcade, M G Road, Ghatkopar (East), Mumbai – 400077, Maharashtra, India
Tel. No.:	91-22-25027101 / 2 / 3 / 3512 -3
Fax No.:	91-22-25027100
E-Mail :	info@eurosoloenergy.com
Factory 1 :	44-A, Navketan Industrial Estate, Opp. Onida Corp Offioce, Mahakali Caves Road, Andheri (East), Mumbai – 400 093, Maharashtra, India
Tel. No.:	91-22-40776000
Fax No.:	91-22-40776010
Area :	3000 sq ft
Location :	Rented
Factory 2 :	Opp. to Pidilite Industries, Village - Gullerwala, Baddi, Tehsil - Nalagarh, District Solan – 173205, Himachal Pradesh

DIRECTORS

Name :	Mr. Nikhil Lakhamshi Chheda
Designation :	Managing Director
Address :	12, Koyal Geet, Vallabh Baugh Lane, Ghatkopar (East), Mumbai – 400077
Date of Birth/Age :	22.06.1975
Date of Appointment :	29.10.2004
E-Mail :	nikhil@eurosoloenergy.com
Name :	Mr. Lakhamshi Nanji Chheda
Designation :	Director
Address :	12, Koyal Geet, Vallabh Baugh Lane, Ghatkopar (East), Mumbai – 400077
Date of Birth/Age :	29.06.1947
Date of Appointment :	29.10.2004
Name :	Mr. Shailesh Lakhamshi Chheda
Designation :	Director
Address :	12, Koyal Geet, Vallabh Baugh Lane, Ghatkopar (East), Mumbai – 400077
Date of Birth/Age :	28.11.1968
Date of Appointment :	29.10.2004
E-Mail :	infi@eurosoloenergy.com
Name :	Mr. Dhaval Shantilal Shah
Designation :	Director
Address :	302, Abhishek Vallabhbhia Road, Vile Parle (West), Mumbai – 400056
Date of Birth/Age :	10.02.1983
Date of Appointment :	29.10.2004
E-Mail :	dhaval@eurosoloenergy.com
Name :	Mr. Shantilal Ladhabhai Shah
Designation :	Director
Address :	Shop No. 6, Abhishek, Vallabhbhai Road, Vile Parle (West), Mumbai – 400056
Date of Birth/Age :	12.04.1958
Date of Appointment :	29.10.2004
E-Mail :	infi@eurosoloenergy.com

Name :	Mr. Shubhashbhai Laljibhai Shah
Designation :	Director
Address :	Prime Avenue, B – Wing, Flat No. 403, S.V. Raod, Near Nanavati Hospital, Vile Parle (West), Mumbai – 400056
Date of Birth/Age :	23.05.1971
Date of Appointment :	05.05.2005
Name :	Mr. Laljibhai Khirabhai Shah
Designation :	Director
Address :	C/o. Laxmi Ply Agency, Shop No. 6, Abhishek Vallabh Bhai Road, Vile Parle (West), Mumbai – 400056
Date of Birth/Age :	21.05.1952
Date of Appointment :	29.10.2004
E-Mail :	infi@eurosoloenergy.com
Name :	Mrs. Nenshi Ladhabhai Shah
Designation :	Director
Address :	202, Ashaniketan Building, Baptista Road, Vile Parle (West), Mumbai – 400056
Date of Birth/Age :	26.09.1959
Date of Appointment :	21.12.2004
Name :	Mrs. Daksha Shubhash Shah
Designation :	Director
Address :	Prime Avenue, B – Wing, Flat No. 403, S.V. Raod, Near Nanavati Hospital, Vile Parle (West), Mumbai – 400056
Date of Birth/Age :	29.07.1975
Date of Appointment :	21.12.2004
Name :	Mr. Nilesh Lakhamshi Nanji Chheda
Designation :	Director
Address :	12, Koyal Geet, Vallabh Baugh Lane, Ghatkopar (East), Mumbai – 400077
Date of Birth/Age :	19.02.1971
Date of Appointment :	25.08.2007
E-Mail :	mahesh@eurosoloenergy.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As On 29.09.2007)

Names of Shareholders	No. of Shares
Mr. Dhaval Shantilal Shah	10000
Mr. Shantilal Ladhabhai Shah	10000
Mr. Nilesh Chheda	60000
Mr. Laljibhai Khirabhai Shah	10000
Mr. Nenshi L. Shah	10000
Mr. Shailesh Lakhamshi Chheda	250000
Mr. Manilal M. Gada	500000
Mr. Nikhil Lakhamshi Chheda	720000
Dsti Enterprises Private Limited	460000
Mrs. Reena Hemang Shah	288590
Mr. Hemang Bhagwandas Shah	528622
Mr. Yogesh C. Shah	65788
Lite source Manufacturing Company	107695
Total	3020695
Equity share breakup (percentage of total equity)
Category	Percentage of Holding
Directors or Relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Batteries
Brands :	EURO VITRIFIED TILES EURO BOND - ALUMINIUM COMPOSITE PANEL EURO MERCHANDISE URO PLY URO MICA URO VENNER EURO CANFOR URO PRELAM
Exports :
Products :	Batteries
Country :	African Countries
Imports :
Products :	Raw Material
Country :	China
Terms :
Selling :	Advance 50%
Purchasing :	L/C, Cash and Credit (60 and 90 days)

GENERAL INFORMATION

Customers :

• Infosys
• Godrej
• Reliance
• ICICI
• Raymonds
• TCS
• Jindal
• ONGC
• The Taj Group

No of Employee :

350

Bankers :

State Bank of India, Industrial Finance Branch, marble Arch, Race Course, Vadodara – 390007, Gujarat

E-Mail: pn.prasad@sbi.co.in

Cosmos Cooperative Bank, Ghatkopar

Facilities :

Cash and Credit doesn’t want to disclose

Particulars	31.03.2007 (Rs.In Millions)
Secured Loan	325.189
Term Loan (Rupee Loan from Banks)	109.923
Cash Credit Limits (From Bank)	1.019
Vehicles Loans	436.131
Total
Unsecured Loan
External Commercial Borrowing (Foreign Currency From Bank)	17.869
From Directors and Shareholders	190.707
Inter Corporate Deposits	94.856
Total	303.432

Banking Relations :	Satisfactory
Auditors :
Name :	M. D. Associates Chartered Accountant
Address :	169 / 4, Lawahar Nagar, Road, No. 2, Goregaon, Mumbai – 400062, Maharashtra, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
13000000	Equity Shares	Rs.10/- each	Rs.130.000 Millions
5000000	Preferences Shares	Rs.10/- each	Rs.50.000 Millions
	Total		Rs.180.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3021055	Equity Shares	Rs.10/- each	Rs.30.210 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		30.210	0.700	28.425
2] Share Application Money		0.000	138.883	0.000
3] Reserves & Surplus		16.872	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		47.082	139.583	28.425
LOAN FUNDS
1] Secured Loans		436.132	377.295	0.000
2] Unsecured Loans		303.434	54.174	0.075
TOTAL BORROWING		739.566	431.469	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.075
TOTAL		786.647	571.052	28.500
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		618.962	26.102	0.841
Capital work-in-progress		14.331	498.568	0.000
INVESTMENT		0.202	0.202	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	199.631	64.815	0.000
	Sundry Debtors	14.956	0.000	0.000
	Cash & Bank Balances	27.263	15.936	1.706
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	4.488	1.056	22.630
Total Current Assets		246.338	81.807	24.336
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	109.488	74.051	0.604
	Provisions	0.790	0.400	0.000
Total Current Liabilities		110.278	74.451	0.604
Net Current Assets		136.060	7.356	23.732
MISCELLANEOUS EXPENSES		17.093	38.824	3.927
TOTAL		786.648	571.052	28.500

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007
Sales Turnover		66.670
Other Income		21.101
Total Income		87.771
Profit/(Loss) Before Tax		(71.502)
Provision for Taxation		0.821
Profit/(Loss) After Tax		(72.323)
Expenditures :
	Raw Material Consumed	59.983
	Purchases made for re-sale	0.000
	Consumption of stores and spares parts	0.000
	Increase/(Decrease) in Finished Goods	(41.697)
	Salaries, Wages, Bonus, etc.	26.856
	Managerial Remuneration	0.000
	Payment to Auditors	0.125
	Interest	60.751
	Insurance Expenses	0.202
	Power & Fuel	3.063
	Depreciation & Amortization	19.968
	Other Expenditure	30.020
Total Expenditure		159.271

Particulars	31.03.2008
Sales Turnover	130.000

Expected Sales (2008-09) : Rs.140.000 Millions

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	82.39	N.A	N.A
Net Profit Margin (PBT/Sales)	(%)	(107.24)	N.A	N.A
Return on Total Assets (PBT/Total Assets}	(%)	8.26	N.A	N.A
Return on Investment (ROI) (PBT/Networth)		(1.51)	N.A	N.A
Debt Equity Ratio (Total Liability/Networth)		18.06	3.62	0.02
Current Ratio (Current Asset/Current Liability)		2.23	1.09	40.29

LOCAL AGENCY FURTHER INFORMATION

Form 8

This form is for	Modification of charge
Charge identification number of the modified	80043874
Corporate identity number of the company	U31400MH2004PLC149319
Name of the company	EURO-SOLO ENERGY SYSTEMS LIMITED
Address of the registered office or of the principal place of business in India of the company	44-A, Navketan Industrial Estate, Opp. Onida Corp Offioce, Mahakali Caves Road, Andheri (East), Mumbai – 400 093, Maharashtra, India
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	The Cosmos Co-operative Bank Limited (Lead Bankers), Ghatkopar Branch, Ghatkopar (West), Mumbai – 400 086, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Composite Deed of Mortgage and Hypothecation for creation of Additional Charge
Date of instrument Creating the charge	11.03.2008
Amount secured by the charge	Rs.724.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest The rate of interest to be applied on various limits sanctioned to you will be : Cosmos Bank: 12%, Kapol Bank: 12% SBI: 12.75% Terms of Repayment Cosmos Bank Cash Credit : Payable on demand subject to review within 12 months Cosmos Bank Term Loan: 72 monthly installments SBI Cash Credit Payable on demand subject to review within 12 months SBI: 72 monthly installments Kapol Bank: 72 months including Moratorium period of 12 months i.e.60 months Margin Cosmos Bank: 25% in bank’s favour SBI: 25% in banks favour Kapol Bank: 25% in bank’s favour Extent and Operation of the charge Cosmos Bank: Rs.402.000 Millions (Cash Credit Rs.87.500 millions, Term Loan 1: Rs.172.500 Millions, Term Loan 2: Rs.74.500 Millions, L/C Rs.37.500 Millions BG Rs.30.000 Millions) Others This is consortium facility. The Cosmos Bank Limited are the held bankers. The charge is on pari passu basis.
Short particulars of the property charged	Mortgage of all that piece and parcel of the land and building lying and being situate within the registration dist Salon and sub dist Nalagarh Dist. Salon Himachal Pradesh bearing Khasra No 221, 233 to 279, 857/ 248, 858/ 248, 859/ 251, 860/ 251, 861/ 251 of Village Gullerwala solely belonging to the company and more particularly described in schedule 3 attached herewith. Hypothecation of machinery, stock and book debts more particularly described in schedule 4 attached herewith.
Particulars of the present modification	The present consortium limit of Rs.724.500 Millions (Cosmos Rs.402.000 Millions, SBI Rs.285.000 Millions, Kapol Bank Rs.37.500 Millions) is secured by immovable property at Dist Solan, Himachal Pradesh

Operations:

The company was incorporated in October 2004 and in the previous year the plant was set up therefore no Profit and Loss account was prepared. The Company has started its commercial production w.e.f. 21.06.2006. During the year the company has occurred a loss of Rs.70.700 Millions. The Company expects better turnover and profitability in the coming years.

Future Out look:

The company is growing rapidly with a well established brand of Euro and is planning to establish good marketing network and brand recognition for “Euro Cell”. The company has established institutional relationships with well known name in Indian Industry which are growing. Accordingly, the Company is confident of better future in the years to come.

Fixed Assets

• Office Equipments
• Tools and Equipments
• Vehicles
• Brand
• Building
• Computer and Peripherals
• Furniture and Fixtures
• Land
• Plant and Machinery
• Trade Mark and Copy Right

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.49.25
UK Pound	1	Rs.80.36
Euro	1	Rs.62.84

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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