MIRA INFORM REPORT

Report Date :

06.01.2011

IDENTIFICATION DETAILS

Name :	TITAN ENERGY SYSTEMS LIMITED
Registered Office :	16, Aruna Enclave, Tirumalghery, Secunderabad – 500015, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	13.01.1995
Com. Reg. No.:	01-19206
CIN No.: [Company Identification No.]	U31200AP1995PLC019206
TAN No.: [Tax Deduction & Collection Account No.]	HYDT00913D
PAN No.: [Permanent Account No.]	AAACT8885B
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturers and Exporter of Titan Solar Photovoltaic Modules and Pannels.

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 1000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is well-established company having satisfactory track. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are fair. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

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 PARTED BY

Name :	Ms. Madhavi Lata
Designation :	Accountant
Date :	05.01.2011

LOCATIONS

Registered Office :	16, Aruna Enclave, Tirumalghery, Secunderabad-500015, Andhra Pradesh, India
Tel. No.:	91-40-27791085/ 0751/ 27795629/ 64630900/ 64630901
Fax No.:	91-40-27795629
E-Mail :	titan@titansolar.com sankar@hd1.vsnl.net.in finance@titansolar.com info@titan-energy.com sankar@titansolar.com marketing@titan-energy.com
Website :	http://www.titansolar.com
Location :	Owned
Branch/ Factory :	P. O. Box No. 6, Ravalkole Village, Medchal – 501 401, Andhra Pradesh, India
Tel. No.:	Tel. 91-8418-22855
Area :	30000 sq. ft. in 6 acres of land
Overseas Office:	EUROPE Gellertstrasse 30, Basel - 4052, Switzerland
Tel. No.:	41-6150-00529
E-Mail :	info.eu@titan-energy.com

DIRECTORS

(AS ON 30.09.2009)

Name :	Mr. Chodagam Santhi Yogananda Sankar Rao
Designation :	Managing Director
Address :	16, Aruna Enclave, Trimulgherry, Secunderabad-500015, Andhra Pradesh, India.
Date of Birth :	29.12.1948
Qualification :	B.E., Graduate
Experience :	02.02.1995
Name :	Mr. Ramamohan Rao Gedela
Designation :	Director
Address :	Flat No. C -1, Plot No.90 , Phase -1, Shilpa Residency, Kavuri Hills, Madhapur, Hyderabad – 500081, Andhra Pradesh , India
Date of Birth :	15.06.1946
Date of Appointment :	01.01.2007
Name :	Mr. Chodagam Sasidhar
Designation :	Director
Address :	Flat 6, 27 Arkwright Road, Hampstead, London, Nw36BJ, United Kingdom
Date of Birth :	03.11.1975
Date of Appointment :	01.02.2005
Name :	Mrs. Aruna Chodagam
Designation :	Director
Address :	16, Aruna enclave, Trimulgherry, Secunderabad-500015, Andhra Pradesh, India
Date of Birth :	13.12.1954
Qualification :	B.A., Graduate
Date of Appointment :	02.02.1995
Name :	Mr. Ravi Kiran Chodagam
Designation :	Director
Address :	APT 3,29 Scofieldave, Stamford, 069061700, USA
Date of Birth/Age :	10.01.1974
Date of Appointment :	23.05.2002
Name :	Mr. Puranam Ravikumar Hayagreeva
Designation :	Director
Address :	501 Yashowan Towers, Behind Mahim Post Office, T. H. Kataria Marg, Mahim-West, Mumbai-400016, Maharashtra, India
Date of Birth/Age :	20.07.1951
Date of Appointment :	28.07.2009
Name :	Mrs. Poonam Garg
Designation :	Nominee Director
Address :	A-802, The New Consmopolitan Apartment, Plot No.33, Sector – 10, Dwarka, New Delhi – 110075, India
Date of Birth/Age :	01.02.1968
Date of Appointment :	19.10.2010
Nominee Company :	IFCI Venturer Capital Funds Limited
Email :	poonam.garg@ifciventure.com

KEY EXECUTIVES

Name :	Ms. Madhavi Lata
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2009)

Names of Shareholders	No. of Shares
C. S. Y. S. Rao	1583100
C. Sasidhar	230400
C. Aruna	544500
C. Ravi Kiran	230400
Titan Consultants and Services Limited, India	2640000
Titan Technocrats Private Limited, India	1980000
Blitz Storm Gmbh	800934
Total	8009334

(AS ON 01.10.2010)

Names of Shareholders	No. of Shares
Green Indian Venture Fund, India	1171875
Total	1171875

(AS ON 30.09.2009)

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	10.00
Bodies corporate	57.68
Directors or relatives of directors	32.32
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporter of Titan Solar Photovoltaic Modules and Pannels.

Products :

Product Description	Item Code
Solar Photovoltaic Modules	8541.40

Exports :

Products :

Solar Photovoltaic, Modules and Pannels

Countries :

· Germany

· USA

· Canada

· Italy

· Spain

· United Kingdom

· South Africa

· Australia

· South East Asian Countries

Imports :

Products :

Raw Material

Countries :

· Germany

· Austria

Terms :

Selling :

L/C, Cash and Credit (30 days)

Purchasing :

L/C, Cash and Credit (30 days)

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Modules	MW	96	11

GENERAL INFORMATION

Suppliers :

· Schott

· Motech

· Suniva

· Ulbrich

· STR

· Krempel

· Medico

Customers :

Retailers

· Scatec Solar

· Enfinity

· Schott

· Genval

No. of Employees :

Total: 200 (Office: 30 and in Factory: 170)

Bankers :

· State Bank of Hyderabad,

Overseas Branch, Somajiguda Branch, Hyderabad, Andhra Pradesh, India

· Union Bank of India

Somaji Guda Branch, 6-3-347/9/4, Dwarkapuri Colony, Hyderabad – 500082, Andhra Pradesh, India

· CITI Bank N.A,

Hyderabad, Andhra Pradesh, India

· Axis Bank,

Hyderabad, Andhra Pradesh, India

· State Bank of India,

Industrial Finance Branch, 1^st Floor, Navabharat Chambers, Raj Bhavan Road, Hyderabad-500082, Andhra Pradesh, India

· State Bank of India,

Samajibada, Hyderabad, Andhra Pradesh, India

Facilities :

Secured Loans	31.03.2009 (Rs. In Millions)
State Bank of India Packing Credit A/C 30282802442 (secured by hypothecation of stocks and book debts)	141.110
State Bank of India-Cash credit A/C No.3459	17.958
State Bank of India-term loan A/C No.2425	28.451
State Bank of India-term loan A/C No.9244 (secured by hypothecation of Fixed assets)	76.370
ICICI Bank Limited-Term Loan	85.000
Vehicle Loans
Car Loans (secured by hypothecation of car)	0.040
Tata Motors Finance Limited-Sumo	0.213
Axis Bank Limited Indica Car Loan A/C 84341	0.232
Axis Bank Limited Loan A/C Corolla 8013 (80254)	0.844
Kotak Mahindra Prime Limited	0.536
Citi Bank Home Loan A/C 1106163 (secured by hypothecation of building)	1.979
TOTAL	352.733

Banking Relations :	--
Auditors :
Name :	PRV Associates Chartered Accountants
Address :	3-6-203, Ground Floor, Himayath Nagar, Hyderabad – 500029, Andhra Pradesh, India
Tel. No.:	91-40-23227651/ 23227114
Fax No.:	91-40-23223289
Associates/Subsidiaries :	· Titan Consultants and Services Limited, 16, Aruna Enclave, Trimulgherry, Secunderabad-500015, Andhra Pradesh, India · Titan Technocrats Private Limited 16, Aruna Enclave, Trimulgherry, Secunderabad-500015, Andhra Pradesh, India

CAPITAL STRUCTURE

(AS ON 30.09.2009)

Authorised Capital :

No. of Shares	Type	Value	Amount
10500000	Equity Share	Rs.10/- Each	Rs.105.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8858615	Equity Share	Rs.10/- Each	Rs.88.586 millions

(AS ON 31.03.2009)

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Share	Rs.10/- Each	Rs.100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8009334	Equity Share	Rs.10/- Each	Rs.80.093 millions

NOTE

Out of the above 5339556 equity shares have been issued as bonus shares during the year 2008-09.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		80.093	26.698	26.698
2] Share Application Money		6.577	6.827	0.000
3] Reserves & Surplus		180.073	154.955	103.669
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		266.743	188.480	130.367
LOAN FUNDS
1] Secured Loans		352.733	168.391	63.321
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		352.733	168.391	63.321
DEFERRED TAX LIABILITIES		3.338	2.284	0.000
SHARE PREMIUM		0.000	0.000	8.367
TOTAL		622.814	359.155	202.055
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		138.442	73.117	40.642
Capital work-in-progress		117.570	28.595	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	548.561	146.836	115.052
	Sundry Debtors	155.462	212.377	92.913
	Cash & Bank Balances	53.864	41.765	0.328
	Other Current Assets	0.000	0.000	7.276
	Loans & Advances	84.920	79.688	1.302
Total Current Assets		842.807	480.666	216.871
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	404.779	146.706
	Other Current Liabilities	67.224	75.809	49.186
	Provisions	4.835	2.375	6.272
Total Current Liabilities		476.838	224.890	55.458
Net Current Assets		365.969	255.776	161.413
MISCELLANEOUS EXPENSES		0.833	1.667	0.000
TOTAL		622.814	359.155	202.055

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008	31.03.2007
	SALES
		Income	1709.460	686.513	276.267
		Other Income	2.841	0.625
		Foreign Exchange gain/(Loss)	(9.422)	1.481	1.768
		TOTAL (A)	1702.879	688.619	278.035
Less	EXPENSES
		Material Consumed	1661.610	531.660	217.419
		Manufacturing Expenses	90.628	44.869	35.050
		Administrative, Selling and Distribution Expenses	101.836	38.901	31.286
		Deferred Revenue Expenses Written Off	0.833	0.833	0.000
		Prior Period Adjustment	0.980	(0.122)	0.001
		Increase / Decrease in Stock	(308.165)	(8.417)	(39.860)
		TOTAL (B)	1547.722	607.724	243.896
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		155.157	80.895	34.139
Less	FINANCIAL EXPENSES (D)		59.145	26.590	7.995
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		96.012	54.305	26.144
Less/ Add	DEPRECIATION/ AMORTISATION (F)		13.122	6.728	5.884
	PROFIT BEFORE TAX (E-F) (G)		82.890	47.577	20.260
Less	TAX (H)		4.376	4.658	2.900
	PROFIT AFTER TAX (G-H) (I)		78.514	42.919	17.360
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		146.588	103.669	86.309
	BALANCE CARRIED TO THE B/S		225.102	146.588	103.669
	EARNINGS IN FOREIGN CURRENCY		1580.420	598.250	170.115
	IMPORTS
		Raw Materials	1642.070	434.230	NA
		Capital Goods	136.030	58.520	NA
	TOTAL IMPORTS		1778.100	492.750	NA
	Earnings Per Share (Rs.)		15.53	16.07	--

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	4.61	6.23	6.24
Net Profit Margin (PBT/Sales)	(%)	4.85	6.93	7.33
Return on Total Assets (PBT/Total Assets}	(%)	8.45	8.59	7.87
Return on Investment (ROI) (PBT/Networth)		0.31	0.25	0.16
Debt Equity Ratio (Total Liability/Networth)		3.11	2.09	0.91
Current Ratio (Current Asset/Current Liability)		1.77	2.14	3.91

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

FORM 8

Name of the company	TITAN ENERGY SYSTEMS LIMITED
Presented By	Mr. C.S.Y.S Rao
1) Date and description of instrument creating the change	Goods security agreement dated 05.08.2005Term loan agreement dated 05.08.2005 Memorandum of Entry dated 05.08.2005 (all facility are secured by common security) Executed by M/s Titan Energy System Limited (Hereinafter referred to as “the company”) in favour of Citibank NA (therin a hereinafter referred to as “the Lender”)
2) Amount secured by the charge/amount owing on the securities of charge	Total working capital credit Facilities Rs. 88.000 millions Total Term loan facilities of Rs. 20.000 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	The whole of movable assets, including plant and machinery, both present and future, stocks of raw materials, goods in process of manufacture , semi finished goods and articles together with all stores, component and spares which now belongs to and pertains to , or may hereafter from time to time during the continuance of this security belong to and pertains to. The borrower and which are shall or may be brought into stored or be in or upon or about the borrower factory godowns and / to their premises wherever else the same may be situated , stored, or lying or being including any such raw materials, inventories, article or goods, any stored spares land components or other similar movable assets in course of transit or delivery to the borrower and all of the borrower present and future book debts, outstanding monies, receivables, claims, bills, investments, rights to or on movable properties and movable assets forming part of current and movable fixed assets which are now due owing or payable or belonging to or pertaining to the borrower or which may at any time hereafter during the continuance of this security become due , owing payable or belonging to or pertaining to the borrower in the course of its business and together with all benefits, advantage and legal incidence thereof Immovable properties being land and building / Land and all immovable plant and machinery embedded to earth owned by the borrower located at 1. Survey no. 753/F, Ravalkole Village, Medhchal, Andhra Pradesh 2. Survey No. 753/G , Ravalkole Village, Medchal, Andhra Pradesh
4) Gist of the terms and conditions and extent and operation of the charge.	In consideration of the lender having agreed to lend advance to the company , said working capital and term loan credit facilities agreement and declaration by the company, inter alia, as follows: 1. Covenant by the company to repay the working capital facility at above and pay interest and all other monies in the manner set out in the said goods security agreement between the company and the lender and to comply with the terms and conditions of the said agreement i.e, to be repayable on demand at an interest rate of 9% per annum 2. Covenant by the company to repay the said term loan facility at above and pay interest and all other monies in the manner set out in the said Term Loan agreement between the company and the lender and to comply with the term and conditions of the said agreement i.e to be repayable within 3 years in quarterly installments from the date of drawdown at an interest rate of 9% per annum 3. The said current assets and fixed assets hypothecated to the lender by way of first exclusive charge created in favour the bank, as security for and be charged with the repayment of the working capital and term loan facilities with all interest, liquidated, damages, premia on prepayment or on redemption, cost, charges, and other expenses payable by the company to the lender in respect thereof. 4. The company to keep the said assets in marketable and good condition and also incurred as provided therein 5. Power of entry, power to take charge and / or possession of seize, recover, receive appoint and sell, contract, dispatch for realization or otherwise dispose of deal with all or any part of the said goods; etc, as provided therein.
5) Name and Address and description of the person entitled to the charge.	CITI Bank N.A, Hyderabad
6) Date and brief description of instrument modifying the charge	Not Applicable
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Not Applicable

Corporate identity number of the company	U31200AP1995PLC019206
Name of the company	TITAN ENERGY SYSTEMS LIMITED
Address of the registered office or of the principal place of business in India of the company	16, Aruna Enclave, Tirumalghery, Secunderabad-500015, Andhra Pradesh, India finance@titansolar.com
This form is for	Creation of charge
Type of charge	Book Debts Movable Property Others -Current Assets and Fixed Assets
Particular of charge holder	Barclays Bank Plc 601/63, Ceejay House, Shivsagar Estate, dr. Annie Besant Road, worli, Mumbai – 400018, Maharashtra, India Email ID: kanakendu.banerjee@barclays.com
Nature of instrument creating charge	Deed of Hypothecation
Date of instrument Creating the charge	28.04.2010
Amount secured by the charge	Rs.180.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As may be decided between the Borrower and the Bank from time to time. Terms of Repayment As may be specified by the Bank from time to time. Margin As may be specified by the Bank from time to time. Extent and Operation of the charge First pari Passu charge by way of hypothecation on all the current assets and fixed assets of the borrower, in favour of Barclays Bank PLC, to secure the repayment of facilities granted by the Bank to the Borrower.
Short particular of the property or asset(s) charged	All the Current Assets of the Borrower, Present and Future. All the Fixed Assets of the Borrower, Present and Future.

FIXED ASSETS

· Land

· Leasehold Land

· Building

· Plant and machinery

· Electrical Equipment

· Furniture and Fixtures

· Office Equipment

· Computers

· Vehicle

AS PER WEB DETAILS

HISTORY

Subject was established in 1991 as one of India’s earliest solar system integration company catering to the off-grid systems market. In 1995, PV Solar module manufacturing capabilities were setup to meet the Indian market requirements, with a modest annual capacity of 3 MWp. In 1999, TITAN started exporting solar modules produced in India. Today, TITAN has established a 100MW state-of-art manufacturing facility in Hyderabad, which is capable producing top-quality solar modules based on crystalline technology.

PROFILE

Titan Energy Systems (TITAN) develops and manufactures high-quality solar photovoltaic modules. Their state-of-art manufacturing facility in Hyderabad, India is one of the largest production facilities in India.

Their high-performance solar modules are marketed to international distributors and large scale project developers in Europe, USA and other locations globally.

For the Indian market, in addition to manufacturing and sales of solar modules, TITAN also undertakes design, construction, operation and maintenance of grid-connected and off-grid solar systems on ‘turnkey’ basis for end customers.

MANAGEMENT

Rao SYS Chodagam

Chairman and Managing Director

Mr. Rao Chodagam, a technocrat and first generation entrepreneur, has over three decades of experience in the Photovoltaic Industry. Prior to founding TITAN in 1990, he handled various technical, research and commercial responsibilities in Government organizations and Public Sector Units for over 20 years. At TITAN, as Managing Director, he guides the strategic growth plans of the business. He holds Bachelors Degree in Electronics and Communications from Andhra University.

Ramesh Subramaniam

Chief Operating Officer

Ramesh is a key member of the executive team responsible for overseeing operations and execution of Titan’s long term growth strategy. Ramesh has over 25 years of experience in the semiconductor and software business. He started his career at Intel Corporation in Santa Clara, CA where he spent over 17 years in various roles of general management, marketing and operations including Director for Flash Memory and Worldwide Director of Advanced Data Centre Services. His Intel career included participating in start-up operations within Intel as well as acting as a GM proxy for acquisitions. After Intel, he joined Denali Software, a pioneer in memory modelling and embedded platforms where he was the Vice President and General Manager of the Embedded Platform Group. Ramesh holds a Master's degree in Business, M.S. in Systems Engineering, and M.E. in Electrical Engineering and has done advanced doctoral research in Electrical Engineering towards candidacy.

Sasi Chodagam

Director - Business Development

Sasi leads international business development and strategy. He is based at Basel, Switzerland close to key European markets. Sasi is responsible for identifying new strategic partners, negotiating long-term supply and sales contracts, while managing key customer and supplier relationship. He is also a part of the management team responsible for developing and executing the long-term growth strategy for the Company. Sasi completed his doctorate in Science from University of Cambridge, UK in 2002 followed by a Business Management Certificate from the London Business School.

Harsha Y Rao

VP-Technical

Harsha heads the Technical department at TITAN, while leveraging on his technical and multi-disciplinary man power management experience gained during his 35 year plus industrial career. In his most recent assignment, he was General Manager for Indian Space Research Organization (ISRO) at the Sriharikota base, overseeing numerous successful high profile space programs. Mr. Harsha holds a Bachelors degree in Electronics and Communications

TV Rao

VP-Commercial and Projects

At TITAN, TV oversees the commercial and EPC projects division. He has a rich experience of over 36 years in techno-commercial activities, having worked in various reputed organizations in Hyderabad. During his tenure he has handled several turn key projects independently. His previous experience includes project management and marketing roles at Electronics Corporation of India (ECIL) Limited and as Senior Manager Projects (Commercial) at Narne Tulaman Manufacturers Private Limited He also has valuable entrepreneurial experience having started and managed Rohit Interlocks and Automation Private Limited, an enterprise engaged in the manufacture of electrical control and instrumentation Panels as well as undertaking turn key electrification projects for the industry, with complete responsibilities of purchase, commercial and finances of the Company. He is holds a Master’s Degree in Physics from Andhra University, Visakhapatnam with distinction.

Seshi JV Kumar

VP-Finance

Seshi has over 30 years of extensive experience in International Financial operations, Accounts, Company Law, Income Tax and other related areas. Prior to joining TITAN, Seshi served as VP-Finance and Company Secretary of Techtran Polyenses Limited, Hyderabad. Seshi graduated from Sri Venkateswara University with a Master Degree in Economics. He holds the membership of “The Institute of Chartered Accountants of India” as well as “The Institute of Company Secretaries of India”

PRESS RELEASE – 2009

TITAN ENERGY SYSTEMS AND ENFINITY TO DEVELOP, FINANCE AND CONSTRUCT 1 GWP OF PV INSTALLATIONS IN ANDHRA PRADESH, INDIA.

9th November 2009: Official announcement at Solarcon 2009 – Hyderabad, India in presence of Shri K. Rosaiah, Chief Minister of Andhra Pradesh and Shri. Kanna Lakshmi Narayana, Minister for Major Industries Commerce and Export Promotion Food Processing of Andhra Pradesh.

Titan Energy Systems, a leading Indian Module Manufacturing and Turnkey Solar Power Plant EPC company and Enfinity, a global renewable energy developer, today announced their collaboration on developing, financing and constructing 1 GWp of PV installations on 3000 acres of land in Andhra Pradesh in the coming 5 years.

Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC - a Government of Andhra Pradesh undertaking) has allocated to Titan Energy Systems, in long lease, 3000 acres of land in the villages of Thumalla, Dademavaripalli, Pulikuntapalli, Karimireddypalli and Lokogipalli, and at the industrial park of Amadugur near Kadiri, all in Anantapur District in the state Andhra Pradesh.

Enfinity will develop and finance this project while Titan Energy Systems will act as a contractor and supplier of the PV Modules. Enfinity and Titan will for this purpose establish an SPV (Special Purpose Vehicle).

“This collaboration is of major strategic importance in the further development of our activities in the high potential PV market in India”, said Gino Van Neer, Founder of Enfinity and CEO of Enfinity Asia.

"Receiving the allotment letter for 1GWp solar power plant from APIIC is a testimony of Titan's ability and competency in establishing large utility scale solar power plants. Our SPV with Enfinity would be the right vehicle in implementing such large projects”, commented Sankar Rao, Managing Director of Titan Energy Systems.

National Solar Mission shows huge PV potential

Further to India’s National Action Plan of Climate Change dated June 30, 2008 a National Solar Plan is expected to come into force in November 2009. By the plan India is preparing to elbow its way toward the head of the solar class. The government has set a solar goal of 20GW by 2020, 100GW by 2030 and 200GW by 2050.

The country’s rapidly rising primary energy and electricity needs, the persistent energy deficit situation, the country’s overdependence on coal for electricity generation and the exceptional irradiation with most parts of the country enjoying 300 sunny days a year, make PV particularly attractive to the country’s energy strategy.

ABOUT TITAN:

TITAN is a pioneer in the design, development and manufacturing of solar photovoltaic modules ranging from 2Wp to 300Wp. Established in 1991, it has established international credibility in the manufacture of solar modules. Specifically for the Indian market, in addition to manufacturing and sales of marketing the solar modules, TITAN also undertakes design, construction, operation and maintenance of grid-connected and off-grid solar systems on 'turnkey' basis for end customers.

TITAN has established a quality management system to meet the ISO 9001-2008 standards. TITAN’s modules are certified to meet the performance as per international standards: IEC 61215:2005 and for safety as per IEC 61730-2 by TÜV, Germany and UL 1703-Third Edition by UL, USA.

TITAN currently operates a manufacturing capacity of 100 MW and is expanding significantly its module production to achieve manufacturing capacity of 500 MW. TITAN is the first company in India to install and operate MW-Scale Grid connected Solar Power Plants.

ABOUT ENFINITY N.V:

Enfinity N.V. is established in Waregem (Belgium), and is a fast-growing and ambitious company with international activities in renewable energy. As a project specialist, Enfinity ensures the implementation of solar energy power plants, and is today already present in twelve countries including Belgium, Italy, Spain, France, Greece, the US, Canada and Germany. In order to finance these energy projects, Enfinity works with individual project companies whose financial means are provided by equity investors and banks. Enfinity is in the process of developing, building and financing PV projects with a total capacity of more than 145 MW and is planning to initiate several hundred megawatts through 2010.

At this time, Enfinity is focusing on solar energy based on photovoltaic technology but the company also has concrete plans for entering the wind energy field. The founders of the company are Gino Van Neer and Patrick Decuyper with the support of ‘business angel’ Marc

Dewaele.

In 2009, Enfinity has consolidated its international position with a 50 million Euro investment by investment firm Waterland.

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.45.20
UK Pound	1	Rs.70.27
Euro	1	Rs.59.99

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		48

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.