MIRA INFORM REPORT

Report Date :

28.05.2011

IDENTIFICATION DETAILS

Name :	BHARAT HEAVY ELECTRICALS LIMITED
Registered Office :	BHEL House, Siri Fort, New Delhi – 110 049
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	13.11.1964
Com. Reg. No.:	55-004281
Capital Investment / Paid-up Capital :	Rs.4895.200 Millions
CIN No.: [Company Identification No.]	L74899DL1964GOI004281
TAN No.: [Tax Deduction & Collection Account No.]	DELB06995C
PAN No.: [Permanent Account No.]	AAACB4146P
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturing and sale of Boilers, Hydro Turbines, Gas Turbines etc.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Aa (73)

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Maximum Credit Limit :	USD 636000000
Status :	Very Good
Payment Behaviour :	Regular
Litigation :	Exists
Comments :	Company is well established and a reputed company having good track. Financials appear to be sound. Directors are reported to be experienced and respectable businessmen. Fundamentals are strong and healthy. Trade relations are reported as fair. Business is active. Payments are regular 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

LOCATIONS

Registered Office/ Factory :	BHEL House, Siri Fort, New Delhi – 110 049, India
Tel. No.:	91-11-66337000 (Multiple Lines)
Fax No.:	91-11-26493021/26492534
E-Mail :	cmdbs@asiad.bhel.co.in md@bhpvl.com tj@bheltry.co.in inder@bhel.in
Website :	http://www.bhel.com
Head Office :	17, Rajasthan Voyoc Nagar, G.T. Kanal Road, Delhi, India

DIRECTORS

As on 17.09.2010

Name :	Mr. B.P. Rao
Designation :	Chairman and Managing Director
Name :	Mr. S. Ravi
Designation :	Director
Name :	Mr. Ashok Kumar Basu
Designation :	Director
Name :	Mr. M.A. Pathan
Designation :	Director
Name :	Mrs. Reva Nayyar
Designation :	Director
Name :	Mr. V. K. Jairath
Designation :	Director
Name :	Mr. Anil Sachdev
Designation :	Director
Name :	Mr. Atul Saraya
Designation :	Director
Name :	Mr. O.P. Bhutani
Designation :	Director

KEY EXECUTIVES

Name :	I. P. Singh
Designation :	Company Secretary
Name :	Shri Saurabh Chandra
Designation :	Additional Secretary and Financial Adviser
Name :	Shri Rajiv Bansal
Designation :	Joint Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Central Government / State Government(s)	331,510,400	67.72
Sub Total	331,510,400	67.72
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	331,510,400	67.72
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	34415090	7.03
Financial Institutions / Banks	1737426	0.35
Insurance Companies	26069410	5.33
Foreign Institutional Investors	63170722	12.90
Sub Total	125392648	25.62
(2) Non-Institutions
Bodies Corporate	21980537	4.49
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	8900071	1.82
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	252059	0.05
Any Others (Specify)	1484285	0.30
Directors & their Relatives & Friends	600	0.00
Trusts	149967	0.03
Clearing Members	694260	0.14
Non Resident Indians	639450	0.13
Foreign Nationals	8	0.00
Sub Total	32616952	6.66
Total Public shareholding (B)	158,009,600	32.28
Total (A)+(B)	489,520,000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	489,520,000	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and sale of Boilers, Hydro Turbines, Gas Turbines etc.

Products :

Item Code No.	Product Description
840210	Boilers other than parts
85023902	Complete generating sets including hydro turbines
84118206	Gas Turbine of thrust exceeding 115000 KW

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

v Arab Bank, Jordan v ABN AMRO Bank NV v Bank of Baroda v Canara Bank v CITI Bank NA v Deutsche Bank v HDFC Bank Limited v Hong Kong and Shanghai Banking Corp. Limited v ICICI Bank Limited v IDBI Bank Limited v Punjab National Bank v Standard Chartered Bank v State Bank of Hyderabad v State Bank of India v State Bank of Travancore v Bank Muskat, Oman v Barclays Bank Limited, Zambia v Bhumiputra Commerce (Bank of Commerce) Malaysia v Indo Jambia Bank, Lusaka v Jamahouria Bank, Libya v National Bank of Egypt

Banking Relations :	--
Auditors :
Name :	J C Bhalla and Company Chartered Accountants
Memberships :	Confederation of Indian Industry
Joint Ventures :	Power Plant Performance Improvement Limited BHEL-GE Gas Turbine Services Limited
Associates/Subsidiaries :	All the Government of India Undertaking Companies SWIL Limited Tata Refractories Limited Spectrum Power Generation Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
2,000,000,000	Equity Shares	Rs.10/- Each	Rs.20000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
489,520,000	Equity Shares	Rs.10/- Each	Rs.4895.200 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		4895.200	4895.200	4895.200
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		154278.400	124492.900	102846.900
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		159173.600	129388.100	107742.100
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		1277.500	1493.700	951.800
TOTAL BORROWING		1277.500	1493.700	951.800
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		160451.100	130881.800	108693.900
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		24296.200	14704.000	9812.600
LEASE ADJUSTMENT		(142.200)	0.000	0.000
Capital work-in-progress		15295.500	11569.700	6580.300
INVESTMENT		798.400	523.400	82.900
DEFERREX TAX ASSETS		15272.300	18403.000	13379.300
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	92925.800	78370.200	57364.000
	Sundry Debtors	206887.500	159755.000	119748.700
	Cash & Bank Balances	97900.800	103146.700	83860.200
	Other Current Assets	0.000	3502.100	4210.900
	Loans & Advances	32205.200	24236.700	13878.000
Total Current Assets		429919.300	369010.700	279061.800
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	280237.400	233573.200	165764.500
	Other Current Liabilities
	Provisions	44751.000	49755.800	34458.500
Total Current Liabilities		324988.400	283329.000	200223.000
Net Current Assets		104930.900	85681.700	78838.800
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		160451.100	130881.800	108693.900

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	332081.500	265901.400	194862.700
		Other Income	12068.500	10511.000	11192.000
		TOTAL (A)	344150.000	276412.400	206054.700
Less	EXPENSES
		Raw material	171744.700	150877.600	100309.900
		Power and fuel cost	3379.900	3418.200	2730.700
		Employee cost	64472.500	29829.000	26110.100
		Other manufacturing expenses	35384.200	26446.500	18962.900
		Selling and administration expenses	11583.600	9828.800	7789.100
		Miscellaneous expenses	(5368.600)	15391.100	10795.100
		Increase or decrease in stock	(7866.500)	(11515.400)	(8272.600)
		TOTAL (B)	273329.800	224275.800	158425.200
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) ®		70820.200	52136.600	47629.500
Less	FINANCIAL EXPENSES (D)		335.000	307.100	354.200
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		70485.200	51829.500	47275.300
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4580.100	3342.700	2942.100
	PROFIT BEFORE TAX (E-F) (G)		65905.100	48486.800	44303.200
Less	TAX (H)		22798.700	17104.700	15709.800
	PROFIT AFTER TAX (G-H) (I)		43106.400	31382.100	28593.400
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		5954.600	4296.900	4427.200
Less	APPROPRIATIONS		43307.100	29724.400	28723.700
	BALANCE CARRIED TO THE B/S		5753.900	5954.600	4296.900
	Earnings Per Share (Rs.)		88.06	34.95	NA

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010
Type	1^st Quarter	2^nd Quarter	3^rdQuarter
Net Sales	66010.400	84906.500	90233.200
Total Expenditure	56360.200	68582.600	69516.200
PBIDT (Excl OI)	9650.200	16323.900	20717.000
Other Income	1634.500	1619.900	1529.400
Operating Profit	11284.700	17943.800	22246.400
Interest	38.300	59.300	144.700
Exceptional Items	0.000	0.000	0.000
PBDT	11246.400	17884.500	22101.700
Depreciation	1268.900	1341.000	1446.900
Profit Before Tax	9977.500	16543.500	20654.800
Tax	3301.000	5120.700	6622.500
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	6676.500	11422.800	14032.300

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	12.53	11.35	13.88
Net Profit Margin (PBT/Sales)	(%)	19.85	18.23	22.74
Return on Total Assets (PBT/Total Assets}	(%)	14.51	12.64	15.34
Return on Investment (ROI) (PBT/Networth)		0.41	0.37	0.41
Debt Equity Ratio (Total Liability/Networth)		2.05	2.20	1.87
Current Ratio (Current Asset/Current Liability)		1.32	1.30	1.39

LOCAL AGENCY FURTHER INFORMATION

HISTORY:

Subject was wholly owned by the Government of India. On Liberalization, the government disinvested a portion of its share holding in December 1991 and February, 1992. Unit Trust of India, Bank of India, LIC and some insurance companies had purchased these shares. At present Government of India’s equity stake is 68%.

This company is the largest engineering enterprise of India. Its first plant was set up at Bhopal in 1956 under technical collaboration with AEI, UK followed by three more major plants at Hardware, Hyderabad and Tiruchirapalli with Russian and Czechoslovak assistance.

The plants have been at the core of the company’s efforts to grow and diversify and become India’s leading engineering company. The company now has 14 manufacturing divisions, 8 service centers and 4 power sector regional centers, besides project sites spread all over India and abroad and also regional operations divisions in various state capitals in India for providing quick service to customers. The company manufactures over 180 products and meets the needs of core-sectors like power, industry, transmission, transportation (including railways), defense, telecommunications, oil business, etc. The Products of the company have established an enviable reputation for high quality and reliability.

The company has installed equipment for over 62,000 MW of power generation – for Utilities, Captive and Industrial users. It has supplied 2, 00,000 MVA transformer capacity and sustained equipment operating in Transmission and Distribution network up to 400 KV-AC and DC.

This is due to the emphasis placed all along on designing, engineering and manufacturing to international standards by acquiring and assimilating some of the best technologies in the world from leading companies in USA, Europe and Japan together with technologies from its-own Research and Development Centres. The company has acquired ISO 9000 certification for its operations and has also adopted the concepts of Total Quality Management. Company’s major clients are State Electricity Boards, NTPC, World Bank aided projects, the Railways and a host of private companies. Its products are exported mainly to the Middle East and the far-east countries.

Recently the company’s performance has been affected due to long delays in placement of orders by the clients (on account of paucity of funds and industrial slowdown) and large VRS outgo.

FINANCIAL HIGHLIGHTS:

During the year, the company witnessed a healthy growth in Turnover by 21.83% to Rs. 341540.000 Millions from Rs. 280330.000 Millions in the previous year. The Turnover (net of excise duty) increased by 25.37% from Rs. 262120.000 Millions n 2008-09 to Rs. 328620.000 Millions in 2009-10. Profit before Tax for the year 2009-10 is placed at Rs. 65910.000 Millions as against Rs. 48490.000 Millions during 2008-09, a growth of 35.92% as compared to previous year. Profit after Tax is placed at Rs. 43110.000 Millions as against Rs.31380.000 Millions during 2008-09, a growth of 37.38% over previous year.

Increase in turnover coupled with savings in material cost over previous year have contributed to the better financial performance during the year.

The changes in estimated contract revenue and estimated contract cost for AS 7 ® contracts under execution in 2008-09 and continuing in 2009-10 is (+) 0.62% and (-) 2.43% respectively, with the consequential impact on turnover.

The wage revision settlement with employees has been finalized during the year. The arrears due from 01.01.2007 to 31.03.2009 amounting to Rs. 20875.100 Millions (Net of Rs. 7985.900 Millions Ad-hoc and 50% DA merger impact accounted up to 31.03.2009) have been charged to Profit and Loss Account and provision available up to 31.03.2009 amounting to Rs. 17493.400 Millions has been withdrawn in the Profit and Loss Account.

Net worth of the company has gone up from Rs. 129390.000 Millions to Rs. 159170.000 Millions registering an increase of 23.02%. Net Asset Value(NAV) per share has increased from Rs. 264.32 in 2008-09 to Rs. 325.16 in 2009-10.

BOARD OF DIRECTORS:

Shri B. Prasada Rao, the then Director (IS and P), BHEL was appointed as Chairman & Managing Director, BHEL w.e.f. 01.10.2009 vide Order No. 1 (4)/2008-PE.XI. Pursuant to Orders from DHI, Shri B.P. Rao is holding additional charge of the post of Director (IS and P) w.e.f. 01.10.2009 and of the post of Director (Finance) w.e.f. 10.06.2010 till the appointment of regular incumbents.

Shri B. Prasada Rao also held the additional charge of the post of Director (E.R&D), BHEL for the period 01.10.2009 to 23.12.2009.

Shri Atul Saraya, has been appointed as Additional Director to take charge of the office of Director (Power), BHEL w.e.f. 01.10.2009.

Shri V.K. Jairath has been appointed as Part-time Non-Official Director w.e.f. 12.11.2009.

Shri Shekhar Datta has been appointed as Part-time Non-Official Director w.e.f. 27.11.2009.

Shri O.P. Bhutani has been appointed as Additional Director to take charge of the office of Director (E.R&D) w.e.f. 24.12.2009.

In accordance with Section 260 of the Companies Act, 1956 and Article 67(iv) of the Articles of Association of the Company, S/Shri Atul Saraya, V.K. Jairath and O.P. Bhutani shall hold their directorships upto the 46^th Annual General Meeting of the Company and are eligible for appointment as Directors at the Meeting.

JOINT VENTURES:

BHEL GE Gas Turbine Services Private. Limited. (BGGTS):

The Joint Venture Company, BHEL-GE Gas Turbine Services Limited. (BGGTS), has been promoted by BHEL with GE, USA for repair and servicing of GE designed Gas Turbines has completed eleven full financial years of operation.

BGGTS achieved a sales turnover of Rs 4270 millions during the year 2008-09 with a profit after tax of Rs 440 millions, Orders for Rs 3950 millions were booked by BGGTS during the year including export orders from overseas. BGGTS successfully completed gas turbine servicing and supply of spares to various customers like TNEB, ONGC, IOCL, Reliance, Essar etc. BGGTS also completed export orders of Rs 140 millions. For the year 2008-09, BGGTS has declared a dividend of 625% thereby maintaining its consistent record of performance.

Power plant Performance Improvement Limited. (PPIL):

The Joint Venture Company, Power plant Performance Improvement Limited (PPIL), has been promoted by BHEL with Siemens, Germany for plant performance improvement of old fossil fuel power plants.

PPIL is in the process of settlement of outstanding issues and collection of withheld payments for pending contracts. Since, sufficient business to ensure viability of the company has not been forthcoming, both the promoter partners have mutually agreed to gradually wind up the company.

NTPC BHEL Power Projects Private. Limited. (NBPPPL):

BHEL along with NTPC Limited has promoted a joint venture company ‘NTPC BHEL Power Projects Private Limited’ for carrying out EPC contracts for Power Plants and other Infrastructure Projects in India and abroad. The JV Company can also take up manufacture and supply of equipments, for power plants and other infrastructure projects, which are not subject to any limitation or restriction under any ongoing collaboration agreement of promoter companies. The JV Company was incorporated on 28^th April, 2008 with initial authorized and paid up capital of Rs 1.000 Million subscribed equally by NTPC and BHEL. Further, Board has also decided to enhance BHEL’s contribution from Rs.0.500 Million to Rs. 1000.000 Millions which will be done in trenches depending upon the requirements.

Barak Power Private Limited (BPPL):

BHEL has promoted a joint venture company with PTC India Limited for setting up of 2x125MW CFBC based power plant in Silchar, Assam. The JVC was incorporated on 1^st September, 2008 under the name of Barak Power Private Limited with an authorized and paid up capital of Rs 10 Millions subscribed to equally by BHEL and PTC. Further, the promoters have also agreed to enhance their contribution from Rs. 5 Millions to Rs. 100 Millions each.

Udangudi Power Corporation Limited:

BHEL has promoted a joint venture company with Tamilnadu Electricity Board for setting up of a 2x800MW Supercritical Thermal Power Plant at Udangudi, Tuticorin, Tamilnadu on build, own and operate basis. The JVC was incorporated on December 26, 2008 under the name of ‘Udangudi Power Corporation Limited’. Theinitial authorized and paid up equity of the JVC is Rs 100 millions subscribed to equally by TNEB and BHEL. The equity structure would be diluted subsequently to bring in Financial Institution/Banks etc, so that TNEB and BHEL hold 26% equity each.

Raichur Power Corporation Limited:

BHEL has promoted a joint venture company with Karnataka Power Corporation Limited (KPCL) for setting up of a 2x660/800MW Supercritical Thermal Power Plant at Yeramarus, Raichur, Karnataka and 1x660/800MW Supercritical Thermal Power Plant at Edlapur, Raichur, Karnataka on build, own and operate basis. The Joint Venture Agreement with KPCL was signed on January 12, 2009 and the JVC was incorporated on April 15, 2009 under the name of ‘Raichur Power Corporation Limited’. The initial authorized and paid up equity of the JVC is Rs 100 millions. Subscribed to equally by KPCL and BHEL. The equity structure would be diluted subsequently to bring in Financial Institution/ Banks etc, so that KPCL and BHEL hold 260lo equity each.

UNAUDITED STANDALONE FINANCIAL RESULTS (AFTER LIMITED REVIEW) FOR THE QUARTER ENDED 31^st DECEMBER 2010

(Rs. In Millions)

Particular	3 Months Ended	9 Months Ended
	31.12.2010	31.12.2010
Sales/ Income from operation	92797.800	247564.700
Less: Excise Duty/ Service Tax	4305.1000	10991.000
Net Sales/ Income form operation	88492.700	236573.700
Value of production (Net of excise duty/service tax)	91213.800	244419.600
Other Operating Income	1740.500	4576.400
Total Expenditure	70963.100	198515.800
Increase / Decrease in stock	(2759.000)	(7943.000)
Consumption of raw material / purchase	50856.900	143775.100
Employees cost	13486.600	39505.000
Depreciation	1446.900	4056.800
Other expenditure	7931.700	19121.900
Profit from operation before other income, interest and exceptional items	19270.100	42634.300
Other income	1529.400	4783.800
Profit before interest and exceptional items	20799.500	47418.100
Interest	144.700	242.300
Profit before tax	20654.800	47175.800
Provision for taxation (includes deferred tax)	6622.500	15081.900
Prior Period Tax	0.000	(37.700)
Net profit / Loss for the period	14032.300	32131.600
Paid up equity share capital (face value of equity shares of Rs.10/-)	4895.200	4895.200
Reserves excluding revaluation reserves	(10.000)	(10.000)
Earning per shares (in Rs) Basic/ Diluted	28.67	65.64
Public shareholding
Number of Shares	158009600	158009600
% of Shareholding	32.28%	32.28%
Promoters and Promoter Group Shareholding
a) Pledged/Encumbered
- Number of Shares	--	--
- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	--	--
- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	--	--
b) Non Encumbered
- Number of Shares	--	331510400
- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)		100%
- Percentage of Shares (as a % of the Total Share Capital of the Company)		67.72%

SEGMENT REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. In Millions)

Particular	3 Months Ended	9 Months Ended
	31.12.2010	31.12.2010
Segment Revenue
Power	72820.300	196469.400
Industry	21429.400	54769.200
Total	94249.700	251238.600
Inter segmental revenue	1451.900	3673.900
Sales/ income from operations	92797.800	247564.700
Segment Results (Profit before tax and interest)
Power	16321.300	41753.800
Industry	4541.800	9300.400
Total	20863.100	51054.200
Less: Interest	144.700	242.300
Others un-allocable expenditure net of income
Total profit before tax	63.600	3636.100
Capital Employed	20654.800	47175.800
Segment assets – segment liabilities
Power		44204.700
Industry		30318.300
Capital employed (including unallocable common)		173451.100

Note:

• Details of investor complaints:

Pending as on 01.10.2010	Received during the quarter	Resolved during the quarter	Pending as on 30.06.2010
Nil	208	208	Nil

· The method of calculating the % completion has been modified to remove the mismatch in recognition of revenue and creation of provision for contractual obligation at 2.5% of the contract revenue on completion of trial operation and also to ensure that only 2.5% of the contract revenue is recognized on completion of trial operation with corresponding provision for contractual obligation. This has resulted in increase of turnover by Rs.4440 millions with a corresponding impact on profit.

· The company has an outstanding order book position of about ` 1580000 millions at the end of Quarter-III 2010-11.

· The above results have been reviewed by the Audit Committee and were taken on record by the Board of Directors in their meeting held on 21.01.2011.

· The above results have been reviewed by the Auditors as per clause 41 of the listing agreement.

FIXED ASSETS:

• Freehold Land
• Leasehold Land, Roads
• Bridges And Culverts
• Buildings
• Lease-hold Buildings
• Drainage, Sewerage and Water supply
• Locomotive and Wagons
• Railway Siding
• Plant and Machinery
• Construction Equipment
• Electrical Installations
• Vehicles
• Furniture And Fixtures
• Office And Other Equipments
• Trade Marks
• Patents and Designs
• Electronic Data Processing Equipments
• Software
• Technical Know-how

WEBSITE DETAILS:

Press Releases

BHEL secures major turnkey contracts for Grid-Connected Eco-friendly Solar Power Plants from Indiabulls

Bharat Heavy Electricals Limited (BHEL) has won major contracts for setting up three eco-friendly Grid-Connected Solar Power Plants with a cumulative capacity of 6 MW on turnkey basis as part of the Jawaharlal Nehru National Solar Mission (JNNSM) of the country.

Valued at over Rs.780 Million, the orders for setting up the three Grid-Connected Solar Photovoltaic (SPV) Power Plants of 2 MW capacity each, has been placed on the company by Indiabulls. The orders come close on the heels of another major turnkey order for setting up Grid-Interactive Solar Power Plants of 1100 kW capacity in the Lakshadweep islands.

Indiabulls has selected Crystalline Photovoltaic (C-SI PV) technology for these solar power plants which is well proven and has the longest operational experience across the world. The power plants will consist of arrays of thousands of photovoltaic panels made of crystalline silicon that will absorb sunlight and convert it into electricity that will be fed into the main grid. DC power generated by the solar panels will be converted into AC by inverters and fed into the grid through transformers.

BHEL’s scope of work in the contract envisages design, manufacture, supply, installation and operation & maintenance of one solar power plant at Bareilly in Uttar Pradesh and two solar power plants near Nagpur in Maharashtra. The orders are slated for completion during the year 2011.

BHEL is presently executing another turnkey contract for setting up eco-friendly Grid-Interactive Solar Power Plants of 3 MW capacity in Raichur District of North Karnataka for Karnataka Power Corporation Limited (KPCL).

Backed by a vast experience of nearly three decades, BHEL is one of the few leading players in the field of solar photovoltaic and SPV power plants in India. The SPV modules are manufactured at its ultra-modern manufacturing facility located at Bangalore. The operations in semi-conductors and solar photovoltaic are supported by an R&D unit, located in Gurgaon.

Starting from small applications like Solar Powered Street Lighting, Rural Water Pumping Systems, Railway Signaling, Offshore Drilling Platforms, etc., BHEL has supplied and commissioned large size Stand-alone as well as Grid Interactive Solar Power Plants in a number of major cities and remote areas of the country. The company’s SPV plants have enabled the people of Lakshadweep, Sagar Islands of West Bengal, Andaman & Nicobar Islands, tribal areas of Chhattisgarh, Jharkhand, etc., to vastly improve their quality of life.

Solar cells and modules manufactured by BHEL are also exported to countries like Germany, Australia and Italy. The company’s PV modules are certified to international standards by JRC, Ispra, Italy.

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 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.45.21
UK Pound	1	Rs.74.30
Euro	1	Rs.64.40

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	YES
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		73

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.