MIRA INFORM REPORT

Report Date :

01.08.2011

IDENTIFICATION DETAILS

Name :		SE FORGE LIMITED
Registered Office :		5, Shrimali Society, Navrangpura, Ahmedabad – 360009, Gujarat
Country :		India
Financials (as on) :		31.03.2010
Date of Incorporation :		26.06.2006
Com. Reg. No.:		04-48563
Capital Investment / Paid-up Capital :		Rs. 2412.541 millions
CIN No.: [Company Identification No.]		U27310GJ2006PLC048563
TAN No.: [Tax Deduction & Collection Account No.]		AHMS13124G
Legal Form :		A Closely Held Public Limited Liability Company
Line of Business :		Manufacturer of Castings and Forged parts required primarily for use in Wind Turbine Generators. (WTG’s).
No. of Employees :	750 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 16062000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a subsidiary of Suzlon Energy Limited. It is an established company having moderate track records. Profitability of the company appears to be under pressure. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office/ Factory 1:	5, Shrimali Society, Navrangpura, Ahmedabad – 380009, Gujarat, India
Tel. No.:	91-79-26471100
Mobile No. :	91-9979864609 (Mr. Jayesh Gandhi)
Fax No.:	91-79-26565540
E-Mail :	mca@suzlon.com jayeshkumar.gandhi@seforge.com
Website :	www.seforge.com
Area :	5000 sq. ft. (Approximately)
Location :	Owned
Factory 2 :	Plot No. 1, Sez Unit, Suzlon Sez at NPO Piparia Taluka Vakhadiya, District, Vadodara – 391760, Gujarat, India
Tel. No.:	91-2668-245086/ 87/ 88/ 89/ 90
Fax No.:	91-2668-245226
Area :	25000 Sq. ft.
Location :	Leased
Factory 3 :	Plot No.1, SIL Hi-Tech Engineering, SEZ Karumathampatty, Coimbatore – 641659, Tamilnadu, India
Tel. No.:	91-421-2362800/ 2362971 to 73
Fax No.:	91-421-2362802
Location :	Leased

DIRECTORS

As on 13.08.2010

Name :	Dr. Pravin Natwarlal Bhagwati
Designation :	Director
Address :	1, Krishna Society, Ellisbridge, Ahmedabad – 380006, Gujarat, India
Date of Birth/Age :	11.02.1936
Qualification :	Graduate
Date of Appointment :	31.01.2009
Name :	Mr. Kirtikumar Jasvantlal Vagadia
Designation :	Director
Address :	D – 302, Kalptaru Regency – 2, Phase – 2, Kalyani Nagar, Near Joggers Park, Pune – 411006, Maharashtra, India
Qualification :	Graduate
Date of Birth/Age :	12.03.1965
Date of Appointment :	31.01.2009
Name :	Mr. Shyamsundar S. Gurumoorthy
Designation :	Director
Address :	1905 – 1906, Sky Flama Bdosti Flamingos, China Mill Compound, Tokersi Jivraj Road, Parel Sewree, Mumbai – 400015, Maharashtra, India
Date of Birth/Age :	04.04.1974
Qualification :	Graduate
Date of Appointment :	03.11.2008
Name :	Mr. Tulsi R. Tanti
Designation :	Director
Address :	A – 902, Ssilver Woods Mundhwa, Pune – 411 036, Maharashtra, India
Date of Birth/Age :	02.02.1958
Qualification :	Graduate
Date of Appointment :	26.06.2006
Name :	Mr. Vinod R. Tanti
Designation :	Director
Address :	A – 901, Ssilver Woods Mundhwa, Pune – 411 036, Maharashtra, India
Date of Birth/Age :	29.06.1962
Qualification :	Graduate
Date of Appointment :	01.04.2008

KEY EXECUTIVES

Name :	Ms. Geetanjali Godse
Designation :	Company Secretary
Address :	A2, 414, Mangalmurti Co-operative Housing Society, Sinhagad Road, Pune – 411006, Maharashtra, India
Date of Birth/Age :	06.11.1981
Date of Appointment :	01.11.2008

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 13.08.2010)

Names of Shareholders	No. of Shares (Equity)
Suzlon Energy Limited (India)	199999400
Tulsi R Tanti Jointly with Suzlon Energy Limited	100
Vinod R Tanti Jointly with Suzlon Energy Limited	100
Girish R Tanti Jointly with Suzlon Energy Limited	100
Gita T Tanti Jointly with Suzlon Energy Limited	100
Sangita V Tanti Jointly with Suzlon Energy Limited	100
Lina J Tanti Jointly with Suzlon Energy Limited	100
IDFC Trustee Company Limited A/c IDFC Infrastructure Fund 3 A/c IDFC Private Equity Fund III	41254125
Total	241254125

(As on 13.08.2010)

Category	Percentage
Venture Capital	17.10
Bodies Corporate	82.90
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Castings and Forged parts required primarily for use in Wind Turbine Generators. (WTG’s).

Products :

Products Descriptions	Item Code No.
Forging and Foundry	730710
Parts of Generators	85030010
Windmill Parts	85030090

GENERAL INFORMATION

Customers :

End Users and OEm’s

No. of Employees :

750 (Approximately)

Bankers :

· State Bank of Patiala,

Commercial Branch, 1^st Floor, Atlanta, Jamnalal Bajaj Marg, Nariman Point, Mumbai – 400021, Maharashtra, India

· State Bank of India,

Overseas Branch, Amrit Jayanthi Bhavan, Navjivan Post Office, Ahmedabad – 380 014, Gujarat, India

· HDFC Bank Limited

· State Bank of Bikaner and Jaipur

· Punjab National Bank

Facilities :

Secured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Term Loan From Banks (Secured by a first charge on certain immovable and/ or movable fixed assets and second charge on current assets)	4166.377	2999.300
Working Capital Facilities From Banks (Secured by hypothecation of inventories, book debts and other current assets of the company, both present and future, second charge on certain immovable fixed assets)	950.777	881.316
Total	5117.154	3880.616

Unsecured Loans :	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. in Millions)
Long Term From Banks (dues within one year Rs.85.292 millions)	711.304	724.984
Short Term From Banks	187.696	178.223
From other than banks – Suzlon Energy Limited, holding company	0.000	34.564
Total	899.000	937.771

Banking Relations :	--
Auditors :
Name :	S. R. Batlibol and Company Chartered Accountant
Address :	C – 401, Fourth Floor, Panchshil Tech Park, CTS No.2175, Yerwada (Near Don Bosco Scheel), Pune – 411006, Maharashtra, India
Tel No. :	91-20-66036000
Fax No. :	91-20-66015900
Holding Company :	· Suzlon Energy Limited CIN No.: L40100GJ1995PLC025447
Fellow Subsidiary :	· Suzlon Infrastructure Services Limited · Suzlon Structures Private Limited · Suzlon Electrical International Limited · Suzlon Wind International Limited · Hansen Drives Limited

CAPITAL STRUCTURE

As on 31.03.2010 

Authorised Capital :

No. of Shares	Type	Value	Amount
250000000	Equity Shares	Rs.10/- each	Rs.2500.000 Millions
27500000	Preference Shares	Rs.100/- each	Rs.2750.000 Millions
	Total		Rs.5250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
241254125	Equity Shares	Rs.10/- each	Rs.2412.541 Millions

NOTE:

Of the above 200000000 equity shares are held by Suzlon Energy Limited, the holding company along with its nominees.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		2412.541	2412.541	2300.00
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3435.968	3435.968	0.000
4] (Accumulated Losses)		(1833.050)	(594.843)	(85.826)
NETWORTH		4015.459	5253.666	2214.174
LOAN FUNDS
1] Secured Loans		5117.154	3880.616	0.000
2] Unsecured Loans		899.000	937.771	867.506
TOTAL BORROWING		6016.154	4818.387	867.506
DEFERRED TAX LIABILITIES		0.000	19.067	0.000
TOTAL		10031.613	10091.120	3081.680
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8137.302	7035.984	18.218
Capital work-in-progress		649.250	1789.923	3538.192
INVESTMENT		0.020	0.020	0.020
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	968.022	1156.443	41.642
	Sundry Debtors	434.301	112.868	0.000
	Cash & Bank Balances	562.386	1110.009	82.296
	Other Current Assets	0.000	0.000	0.368
	Loans & Advances	141.843	138.741	56.079
Total Current Assets		2106.552	2518.061	180.385
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	662.446	1090.110	633.797
	Other Current Liabilities	184.250	156.314	20.474
	Provisions	14.815	6.444	0.864
Total Current Liabilities		861.511	1252.868	655.135
Net Current Assets		1245.041	1265.193	(474.750)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		10031.613	10091.120	3081.680

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1041.099	171.824	0.144
		Other Income	39.341	70.875	0.002
		TOTAL (A)	1080.440	242.699	0.146
Less	EXPENSES
		Cost of goods sold	597.015	35.214	0.000
		Operating and other expenses	475.180	319.343	64.478
		Employees’ remuneration and benefits	213.393	83.063	0.000
		Preliminary expenses written off	0.000	0.000	15.407
		TOTAL (B)	1285.588	437.620	79.885
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(205.148)	(194.921)	(79.739)
Less	FINANCIAL EXPENSES (D)		633.469	157.031	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(838.617)	(351.952)	(79.739)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		418.524	175.675	0.000
	PROFIT BEFORE TAX (E-F) (G)		(1257.141)	(527.627)	(79.739)
Less	TAX (H)			20.744	2.360
	PROFIT AFTER TAX (G-H) (I)		(1238.207)	(548.371)	(82.099)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(594.843)	(85.826)	(3.727)
Add	Exchange differences of earlier years capitalized to fixed assets.		0.000	39.354	0.000
	BALANCE CARRIED TO THE B/S		(1833.050)	(594.843)	(85.826)
	EARNINGS IN FOREIGN EXCHANGE		110.326	3.322	NA
	Import
	Raw materials		205.478	1084.752	41.642
	Stores and Spares		13.459	12.960	0.000
	Capital Goods		76.238	2423.500	1421.151
	Total Imports		295.175	3521.212	1462.793
	Earning/(Loss) Per Share (Rs.)		(5.13)	(3.53)	(0.77)

Expected Sales (2010-2011) : Rs.1300.000 Millions

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(114.60)	(225.95)	(56232.19)
Net Profit Margin (PBT/Sales)	(%)	(120.75)	(307.07)	(55374.31)
Return on Total Assets (PBT/Total Assets}	(%)	(12.27)	(5.52)	(2.25)
Return on Investment (ROI) (PBT/Networth)		(0.31)	(0.10)	(0.04)
Debt Equity Ratio (Total Liability/Networth)		1.71	1.16	0.69
Current Ratio (Current Asset/Current Liability)		2.44	2.01	0.28

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

(Rs. In millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors :
Dues to micro, medium and small enterprises	0.000	0.000	0.000
Others	662.446	1090.110	633.797
Total	662.446	1090.110	633.797

NATURE OF OPERATIONS:

Subject is engaged in the manufacture of Castings and Forged Parts required primarily for use in Wind Turbine Generators ('WTGs'). The Company has set up its manufacturing facilities as "Units in Notified SEZWat Vadodara and Coimbatore, in the states of Gujarat and Tamil Nadu respectively. The Company has obtained an approval from the Development Commissioner for setting up of the manufacturing facilities as "Units in the Notified SEZ" vide letter No KASEZ/P&C/6/57/07-0814744 dated 31st July 2007 for Vadodara Unit; and letter No. 81112007-Suzlon lnfra dated 18th September 2007 for Coimbatore Unit.

change of address:

The situation of the registered office of the company was changed from Suzlon, 5, Shrimali Society, Navarangapura, Ahmedabad – 380 009, Gujarat to the present address w.e.f. 01.08.2006.

BUSINESS REVIEW:

During the year, the Company has completed major capitalization of assets worth Rs 1530.869 Millions. During the year, the Company has also developed New Customers for Wind and Non Wind application of its products and have added 12 New Customers to its Customer Portfolio.

The Company has achieved a Direct Export of Rs 110.326 Millions (Previous Year Rs 3.322 Millions) and Deemed Export (Sale to other SEZ entities / EOU units) Rs 283.825 Millions (Previous Year 1.181 Millions). As a Business Strategy, the Company continuously explores new geographies in Europe, U.S.A, Latin America for it’s products, by active marketing initiatives.

The Company has identified and continuously explores Non Wind Application of it’s products like Oil and Gas Sector, Process Equipments etc.

FORM: 8

This form is for	Modification of charge
Charge identification number of the modified	10149485
Corporate identity number of the company	U27310GJ2006PLC048563
Name of the company	SE FORGE LIMITED
Address of the registered office or of the principal place of business in India of the company	5, Shrimali Society, Navrangpura, Ahmedabad – 360 009, Gujarat, India
Type of charge	Immovable Property Book Debts Movable property Floating charges
Particular of charge holder	State Bank of Patiala, Commercial Branch, 1^st Floor, Atlanta, Jamnalal Bajaj Marg, Nariman Point, Mumbai – 400021, Maharashtra, India E-Mail: sbop313@gmail.com
Nature of description of the instrument creating or modifying the charge	Letter regarding the grant of Individual Limits within the Overall Limit dated 28^th August 2010
Date of instrument Creating the charge	28.08.2010
Amount secured by the charge	Rs.500.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: 0.25% above BPLR i.e. 12.50% p.a. floating with monthly rests. Terms of Repayment: 22 equated quarterly installments each of Rs.21.739 Millions and last 23^rd installment of Rs.21.720 Millions commencing from 1^st January, 2010 and ending on January 2017 with a moratorium from April 2010 to September 2011 Margin: 25% Extent and Operation of the charge: There is no change in extent and operation of the charge except that there is change in repayment schedule and rate of interest.
Short particulars of the property charged	first pari passu charge on whole of the movable fixed assets; second pari passu charge on whole of the current assets of the Company, situate at Village Karumathampatti and Kittampalayam, Taluka Palladam, District Coimbatore, Tamilnadu; second pari passu charge on whole of the current assets of the Company, situate at Village Pipalia and Alwa, Taluka Waghodia, District Vadodara, Gujarat; first pari passu charge on all immovable properties of the Company, situate at Village Karumathampatti and Kittampalayam, Taluka Palladam, District Coimbatore, Tamilnadu; first pari passu charge on all immovable properties of the Company, situate at Village Pipalia and Alwa, Taluka Waghodia, District Vadodara, Gujarat; There is no change in particulars of the property or assets charged.
Date of last modification	15.04.2009
Particulars of the present modification	By virtue of Letter Regarding the Grant of Individual Limits within the Overall Limit dated 28th August 2010, there has been revision in the repayment schedule and rate of interest.

FIXED ASSETS:

· Factory Building

· Plant and Machinery

· Furniture and Fixture

· Computers and Peripherals

· Office Equipment

· Vehicles

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] 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.44.15
UK Pound	1	Rs.72.10
Euro	1	Rs.63.10

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--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	YES
--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	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.