MIRA INFORM REPORT

Report Date :

16.02.2011

IDENTIFICATION DETAILS

Name :	BRG ENERGY LIMITED
Registered Office :	Plot No.838, Vivekananda Nagar Colony, Kukatpally, Hyderabad-500072, Andhra Pradesh.
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	25.07.2006
Com. Reg. No.:	11-050709
CIN No.: [Company Identification No.]	U40101AP2006PLC050709
TAN No.: [Tax Deduction & Collection Account No.]	HYDB03202D
PAN No.: [Permanent Account No.]	AACCB9138M
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacture and Supplier of Power Transformers.

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 1200000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company is progressing well. 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

INFORMATION DECLINED BY

Name :	Mr. Balaram
Designation :	Accounts Department
Date :	10.02.2011

LOCATIONS

Registered Office/ Corporate Office :	Plot No.838, Vivekananda Nagar Colony, Kukatpally, Hyderabad-500072, Andhra Pradesh, India
Tel. No.:	91-40-23064853
Fax No.:	91-40-23064872
E-Mail :	info@brgenergy.com
Website :	www.brgenergy.com
Central Marketing Office :	Plot No.12, Software Units Layout, Cyberabad, Hyderabad-500081, Andhra Pradesh, India
Tel. No.:	91-40-23114013
Fax No.:	91-40-23114921
E-Mail :	marketing@brgenergy.com
Factory :	Plot No.40, APIIC, Phase-1, Pashamailaram (Village), Patacheru (Mandal), Medak (District), Andhra Pradesh, India.
Tel. No.:	91-8455-224101
Fax No.:	91-8455-224102

DIRECTORS

As On : 30.09.2010

Name :	Mr. Velangini Mary Gopu
Designation :	Managing Director
Date of Appointment :	25.07.2006
DIN No :	00195949
Name :	Mr. Bala Reddy Gopu
Designation :	Director
Date of Appointment :	25.07.2006
DIN No :	01562665
Name :	Mr. Yarabolu Venkata Ramana Reddy
Designation :	Director
Date of Appointment :	01887175
DIN No :	01887175

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Mr. Velangini Mary Gopu	379810
Mr. Bala Reddy Gopu	12633550
Mr. Yarabolu Venkata Ramana Reddy	100
Amita Thakur	30000
Are Raghu Rama Chandra Reddy	10000
Avula Venkatanarayana Reddy	250000
Jasthi Annantha Sai Padmaja	200000
K. R. Bharat	300000
A.Jayasudha	830000
P. V. S. Raju	600000
Sita Ramu Chitela	250000
G. Veeramatha	1000000
Samatha Atluri	149700
Manjeera Parvpalli	221040
Sravanthi Mannava	298200
V. Chinnapa Reddy	250000
Aga Shai Khan	500000
Sahasra Investments Private Limited, India	697460

AS ON 30.09.2010

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		100.000
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacture and Supplier of Power Transformers.
Products :	Secondary Bushings Primary Bushings Rating and Diagram Plate Tank grounding Provision Lifting Lugs Pole Mounting Brackets/Tanks Base Channels

GENERAL INFORMATION

Customers:

· MSEB

· APSEB

· APSPDCL

· APCPDCL

· APEPDCL

· APNPDCL

· KSEB

· MPPKVVCL

· MPMKVVCL

· DHBVNL

· UHBVNL

· CSEB

No. of Employees

Not Divulged to the Management.

Bankers :

Andhra Bank, Sultan Bazar Branch, Koti, Hyderabad-500001, Andhra Pradesh, India

Facilities :

SECURED LOAN	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Union Bank Cash Credit Account (cash credit from Union Bank of India is secured by stocks and book debts and receivables from sister concern ICSA (India) Limited)	249.360	248.882
Union Bank Term Loan (Term loans secured by hypothecation of plant and machinery and factory land and building unit-II)	21.133	31.997
Andhra Bank Term Loan (Term loans secured by hypothecation of plant and machinery of Jadcherla unit and construction there on land admeasuring 19.03 acres at Jadcherla Unit	10.802	0.000
Vehicle Loans (Vehicle Loans secured by hypothecation of vehicles)	1.652	0.943
Total	282.947	281.822
UNSECURED LOAN	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Loans from Directors and Shareholders	0.000	20.000
Total	0.000	20.000

Banking Relations :	--
Auditors :
Name :	VDNR and Associates Chartered Accountant
Address :	201, Dwaraka Avenue, Dwarakapuri Colony, Punjagutta, Hyderabad-500034, Andhra Pradesh, India
Associates/Subsidiaries :	ICSA (India) Limited

CAPITAL STRUCTURE

As On : 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs. 10/- each	Rs. 250.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
19653460	Equity Shares	Rs. 10/- each	Rs. 196.535 millions

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		196.535	138.535	58.939
2] Share Application Money		0.500	0.000	9.200
3] Reserves & Surplus		120.356	69.328	34.810
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		317.391	207.863	102.949
LOAN FUNDS
1] Secured Loans		282.947	281.822	172.166
2] Unsecured Loans		0.000	20.000	0.000
TOTAL BORROWING		282.947	301.822	172.166
DEFERRED TAX LIABILITIES		7.908	5.492	2.285
TOTAL		608.246	515.177	277.400
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		149.877	141.781	95.456
Capital work-in-progress		25.597	4.697	0.000
INVESTMENT		0.000	30.201	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	330.929	311.044	0.000
	Sundry Debtors	126.934	82.502	204.235
	Cash & Bank Balances	10.088	1.914	4.471
	Other Current Assets	71.338	79.696	0.000
	Loans & Advances	666.164	659.074	476.470
Total Current Assets		1205.453	1134.230	685.176
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	242.013	158.061	61.060
	Other Current Liabilities	492.959	596.394	443.746
	Provisions	39.618	42.896	0.000
Total Current Liabilities		774.590	797.351	504.806
Net Current Assets		430.863	336.879	180.370
MISCELLANEOUS EXPENSES		1.909	1.619	1.574
TOTAL		608.246	515.177	277.400

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1066.405	966.763	487.055
		Other Income	4.310	7.068	4.236
		TOTAL (A)	1070.715	973.831	491.291
Less	EXPENSES
		Cost of Materials	241.806	340.924	160.259
		Manufacturing Expenses	93.604	115.159	25.876
		Raw Material Consumption for Manufacture	538.074	363.716	205.981
		Stores Consumption	17.744	9.565	7.992
		Employees Remuneration	20.713	9.662	3.814
		Increase/(Decrease) in Finished Goods	(30.664)	(70.132)	(17.657)
		Selling and Distribution Expenses	46.641	18.077	6.018
		Excise Duty Provision on Finished Goods	61.382	3.494	0.982
		Excise duty paid on stock transfers	6.638	17.275	0.000
		Service tax on work contracts	5.428	10.486	0.000
		Sales tax	27.195	32.835	35.414
		Preliminary expenses w/off	0.360	0.230	0.175
		Prior period expenses	0.000	0.000	0.200
		TOTAL (B)	967.602	851.291	428.880
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		103.113	122.540	62.411
Less	FINANCIAL EXPENSES (D)		65.905	57.145	9.855
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		37.208	65.395	52.556
Less/ Add	DEPRECIATION/ AMORTISATION (F)		7.681	3.370	0.468
	PROFIT BEFORE TAX (E-F) (G)		29.527	62.025	52.088
Less	TAX (H)		18.800	22.526	17.248
	PROFIT AFTER TAX (G-H) (I)		10.727	39.499	34.840
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.000	0.329
		Transfer to Dividend	4.698	4.980	3.471
	BALANCE CARRIED TO THE B/S		6.029	34.519	31.215
	Earnings Per Share (Rs.)		0.55	2.85	2.53

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.00	4.06	7.13
Net Profit Margin (PBT/Sales)	(%)	2.77	6.42	10.73
Return on Total Assets (PBT/Total Assets}	(%)	2.18	4.86	6.69
Return on Investment (ROI) (PBT/Networth)		0.09	0.30	0.51
Debt Equity Ratio (Total Liability/Networth)		3.36	5.31	6.60
Current Ratio (Current Asset/Current Liability)		1.56	1.42	1.36

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

(Rs. In Millions)

PARTICULARS	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors
Expenses	5.966	5.450	1.750
Suppliers	211.818	136.568	53.124
Capital Goods	1.095	1.965	6.186
Capital Expenditure	1.551	1.369	0.000
Sub Contractors	21.583	12.709	0.000
Total	242.013	158.061	61.060

Note : Registered Office of the company has been shifted from Flat No.502, Krishna Apartment, MIG Plot No.192 and 193, Road No.1, Kukatpalli, Hyderabad, Andhra Pradesh, India to the present address w.e.f.26.03.2008

FUTURE OUTLOOK

With the Priority given to the 'Power Sector by the Governments both at Centre and State, the directors foresee an excellent future for the Company in the years to come.

FORM 8

Corporate identity number of the company	U40101AP2006PLC050709
Name of the company	BRG ENERGY LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.838, Vivekananda Nagar Colony, Kukatpally, Hyderabad-500072, Andhra Pradesh, India
This form is for	Creation of charge
Type of charge	Immovable property Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	Andhra Bank, Sultan Bazar Branch, Koti, Hyderabad-500001, Andhra Pradesh, India
Nature of instrument creating charge	Composit agreement dated 09.08.2010 Counter guarantee dated 09.08.2010 General form of guarantee dated 09.08.2010
Date of instrument Creating the charge	09.08.2010
Amount secured by the charge	Rs.210.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Base Rate+4.75+0.25 PA i.e. 13.25%pa Terms of repayment 20 Quarterly installments of Rs.5.500 millions each commencing form April 2011 with interest to be paid as and when debited. Margin Term loan: 30%, Bank guarantee: 10% ILC/FLC : 10% Extent and operation of the charge Hypothecation of plant and machinery and construction thereon in land admeasuring 19.03 acres at Jadcherla at a total project cost of Rs. 155.200 millions LC: hypothecation of stocks received under LC BG: counter guarantee of the company
Short particulars of the property charged (Including location of the property)	Hypothecation of plant and machinery and construction thereon in land admeasuring 19.03 acres at Jadcherla at a total project cost of rs. 155.200 millions LC: Hypothecation Of Stocks Received Under LC BG: Counter Guarantee Of The Company

FIXED ASSETS

Land

Factory Buildings

Plant and Machinery

Electrical Equipment

Office Equipment

Computers

Vehicles

Furniture and Fittings

WEB SIDE DETAILS

PROFILE

Established in 2006 BRG Energy Limited has grown to be a prominent player in the Indian electrical Industry for Power & Distribution transformers. The management is lead by techno-savvy entrepreneurs known for pioneering leadership, vision, customer focus and innovation. BRG Energy Limited. is equipped with the latest Design and Engineering technologies available for transformer industry. It caters to relevant business segment complying complete specifications with best product quality and customer satisfaction. Customizing design parameters suiting customer requirement is the company’s mission.

A Value Based Organization

Aiming to be India’s leading transformer manufacturing company that is held in high esteem even by competitors is a great deal of relevance attached to its image as a value based organization. Operating with transparency, it has highest sense of commitment towards employees and society. Similar values are extended towards all business associates, vendors and valued customers.

Facilities

Factory premises cover 5 acres of land having 3.5 acres built up area. Existing setup and facilities are equipped to design, manufacture and test transformers up to 12.5 MVA, 66 / 33 KV class with annual manufacturing capacity of 5500 MVA and there is enough scope for further expansion for producing larger quantity and higher rating of transformers.

Strengths

BRG's products have inherent   strength because of superior design. The organization has a team of qualified and experienced design engineers, software engineers and skilled draughts men trained in advanced technology for related field. Design department is equipped with latest software for optimum electrical and mechanical   designing to manufacture the best quality transformers at the most economical prices.  Incorporating  latest  technologies available in the world and making use of superior quality raw materials and state-of-art plant  and  machineries  BRG build most reliable transformers as per IS 2026/IEC standards.

The  strength  of  the   organization  lies  primarily  in   its  human   resources having  expertise in all  sphere  of  activities, be  it designing, material procurement, quality, production, testing, marketing and prompt post-sales support.

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.45.45
UK Pound	1	Rs.72.90
Euro	1	Rs.61.42

SCORE & RATING EXPLANATIONS

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