MIRA INFORM REPORT

Report Date :

12.11.2011

IDENTIFICATION DETAILS

Name :	M. E ENERGY PRIVATE LIMITED
Formerly Known As :	MAXHEAT ENGINEERING PRIVATE LIMITED
Registered Office :	Gat No. 1083/1B, Markal, Taluka Khed, Pune – 412 105, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.03.1998
Com. Reg. No.:	25-114226
Capital Investment / Paid-up Capital :	Rs.10.082 Millions
CIN No.: [Company Identification No.]	U51503PN1998PTC114226
TAN No.: [Tax Deduction & Collection Account No.]	PNEM02230E
PAN No.: [Permanent Account No.]	AABCM9355L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Energy Saving, Heating and Cooling Systems.
No. of Employees :	300 (Approximately) (150 Fixed Workers and 150 Contract Workers)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 230000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for 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.

INFORMATION PARTED BY

Name :	Mr. Harsh Oak
Designation :	Chief Financial Officer
Contact No.:	91-2135-660893
Name :	Mr. Anthony S
Designation :	Admin Department
Date :	11.11.2011

LOCATIONS

Registered/Corporate/Head Office/Factory :	Gat No. 1083/1B, Markal, Taluka Khed, Pune – 412 105, Maharashtra, India
Tel. No.:	91-2135-660890-898
Fax No.:	91-2135-660889
E-Mail :	info@meenergy.com mepl@meenergy.com raghu@meenergy.com oak@meenergy.com iut@eth.net
Website :	www.meenergy.com
Area :	36000 sq. ft.
Location :	Owned

DIRECTORS

As on 11.08.2011

Name :

Mr. Vijayasanker Kalathil Kartha

Designation :

Managing Director

Address :

Flat No. 501, Tower A, Gold Coast, Ivory Estate, Baner Road, Pune – 411 008, Maharashtra, India

Date of Birth/Age :

06.05.1960

Date of Appointment :

30.03.1998

DIN No.:

00176616

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U51503PN1998PTC114226	M. E Energy Private Limited	Managing director	30-03-98	30-03-98	-	Active	NO
2	U29299PN2005PTC020886	Maxheat Equipments Private Limited	Managing director	16-06-05	16-06-05	-	Strike off	NO
3	U29299PN2006PTC021937	Maxenergy Equipments Private Limited	Director	01-02-06	01-02-06	26-03-10	Active	NO
4	U91110PN2011NPL140746	Markal Industries Association	Director	13-09-11	13-09-11	-	Active	NO

Name :

Mr. Shrishail Sangappa Bahirgonde

Designation :

Director

Address :

Shree Premsunder, Veerbhadra Nagar, Baner, Pune – 411 045, Maharashtra, India

Date of Birth/Age :

01.06.1951

Date of Appointment :

09.09.2008

DIN No.:

01939398

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U51503PN1998PTC114226	M. E Energy Private Limited	Director	09-09-08	08-12-07	Active	NO

Name :

Mr. Sudhir Baswant Bharale

Designation :

Director

Address :

A II/503, Kumal Puram, Mumbai Pune Road, Phugewadi, Pune – 411 012, Maharashtra, India

Date of Birth/Age :

08.06.1960

Date of Appointment :

09.09.2008

DIN No.:

01980415

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U51503PN1998PTC114226	M. E Energy Private Limited	Director	09-09-08	08-12-07	Active	NO

KEY EXECUTIVES

Name :	Mr. Harsh Oak
Designation :	Chief Financial Officer
Name :	Mr. Anthony S
Designation :	Admin Department
Name :	Mr. Prasad Chandragiri
Designation :	Vice President – Design and Engineering
Name :	Mr. Dipankar Chodankar
Designation :	Chief – Manager Contracts
Name :	Mr. Santosh Charankar
Designation :	Manager – QA and C
Name :	Mr. Ranjith B.
Designation :	Manager – Sales and Marketing

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 11.08.2011

Names of Shareholders	No. of Shares
Vijayasanker K. Kartha	547640
Reema K. Kartha	212920
Shrishail S Bahirgonde	108700
Sudhir B Bharle	108700
Rashmi Kulkarni	30240
Total	1008200

As on 11.08.2011

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

BUSINESS DETAILS

Line of Business :	Manufacturer of Energy Saving, Heating and Cooling Systems.
Product Description :	· Heat Exchangers · Waste Heat Recovery Systems · Boiler Pressure Parts
Exports :
Products :	Finished Goods
Countries :	· Sri Lanka · Gulf Countries
Imports :
Products :	Raw Material
Countries :	· Germany · Italy
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS (As on 31.03.2011)

Installed Capacity *

Actual Production - 85 Systems

* The Company is a project based company and manufacturers Heat Exchangers, Waste Heat Recovery Systems, Energy Saving Systems, Heating and Cooling Equipments, Heat Exchangers, Boiler Pressure Parts etc. as per the customer specifications, hence there as the installed capacity.

GENERAL INFORMATION

Customers :

· OEM’s

· Automobile Industries

No. of Employees :

300 (Approximately) (150 Fixed Workers and 150 Contract Workers)

Bankers :

· Bank of India

Spicer College (Aundh Branch), Aundh, Pune – 411 037, Maharashtra, India

· Canara Bank

Pimpri Branch, Umed Bhavan, Pimpri, Pune – 411 018, Maharashtra, India

· Bank of Maharashtra

· ICICI Bank

Facilities :

Secured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Canara Bank / Bank of India	40.683	39.767
Bank of Maharashtra	0.071	0.308
ICICI Bank	0.224	0.644
Bank OD A/C
Canara Bank / Bank of India	39.604	17.619
Total	80.582	58.338

Unsecured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
From Directors	8.644	9.949
Total	8.644	9.949

Banking Relations :	---
Auditors :
Name :	Kirtane and Pandit Chartered Accountants
Address :	‘Sangati’ 73/2/2, Bhakti Marg, Law Collage Road, Pune – 411 004, Maharashtra, India
Tel. No.:	91-20-25433104 / 25438764 / 25421997
Fax No.:	91-20-25447603
E-Mail :	kpca@kirtanepandit.com
Website :	http://www.kirtanepandit.com
PAN No.:	AIIPP4010B
Enterprise over which Relatives of Key management personnel exercise significant influence :	· Sri Aurobindo Motors · Maxenergy Equipments Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1008200	Equity Shares	Rs.10/- each	Rs.10.082 Millions

Note

(Out of the above 504100 no of Equity Shares are allotted to fully paid-up by way of Bonus Shares)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		10.082	4.890	4.890
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		48.249	46.419	20.252
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		58.331	51.309	25.142
LOAN FUNDS
1] Secured Loans		80.582	58.338	68.481
2] Unsecured Loans		8.644	9.949	2.728
TOTAL BORROWING		89.226	68.287	71.209
DEFERRED TAX LIABILITIES		5.129	5.470	5.670
TOTAL		152.686	125.066	102.021
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		70.864	75.135	81.373
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	36.343	11.242	14.297
	Sundry Debtors	103.705	123.510	59.714
	Cash & Bank Balances	6.967	5.623	3.525
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	23.776	12.147	14.308
Total Current Assets		170.791	152.522	91.844
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	52.033	70.874	48.551
	Other Current Liabilities	20.781	17.409	16.029
	Provisions	16.155	14.308	6.616
Total Current Liabilities		88.969	102.591	71.196
Net Current Assets		81.822	49.931	20.648
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		152.686	125.066	102.021

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
SALES
	Income	208.841	263.706	161.541
	Other Income
	TOTAL	208.841	263.706	161.541
EXPENSES
	Office Expenses	195.778	223.170	154.338
	Administrative Expenses
	Advertising Expenses
	TOTAL	195.778	223.170	154.338
PROFIT/LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION		13.063	40.536	7.203
DEPRECIATION/ AMORTISATION		7.593	8.330	6.273
PROFIT/LOSS BEFORE TAX		5.470	32.206	0.930
TAX		1.640	6.240	5.664
PROFIT/LOSS AFTER TAX		3.830	26.167	(4.734)
EARNINGS IN FOREIGN CURRENCY		29.469	10.183	Nil
Earnings/(Loss) Per Share (Rs.)		3.80	535.13	(96.81)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.83	9.92	(2.93)
Return on Total Assets (PBT/Total Assets}	(%)	2.26	14.15	0.54
Return on Investment (ROI) (PBT/Networth)		0.09	0.63	0.04
Debt Equity Ratio (Total Liability/Networth)		3.05	3.33	5.66
Current Ratio (Current Asset/Current Liability)		1.92	1.49	1.29

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

Particulars	31.03.2011 Rs. in millions	31.03.2010 Rs. in millions	31.03.2009 Rs. in millions
Sundry Creditors	52.033	70.874	48.551

Sr. No.	Check List by Info Agents
1.	Year of Establishment	YES
2.	Locality of the firm	YES
3.	Constitutions of the firm	YES
4.	Premises details	YES
5.	Type of Business	YES
6.	Line of Business	YES
7.	Promoter’s background	--
8.	No. of employees	YES
9.	Name of person contacted	YES
10.	Designation of contact person	YES
11.	Turnover of firm for last three years	YES
12.	Profitability for last three years	NO
13.	Reasons for variations <> 20%	NO
14.	Estimation for coming financial year	NO
15.	Capital in the business	YES
16.	Details of sister concerns	--
17.	Major Suppliers	NO
18.	Major Customers	NO
19.	Payment terms	YES
20.	Export / Import details (is applicable)	YES
21.	Market information	--
22.	Litigation that the firm / promoter involved in	--
23.	Banking Details	YES
24.	Banking facility details	NO
25.	Conduct of the banking account	--
26.	Buyer visit details	--
27.	Financials, if provided	NO
28.	Incorporation details, if applicable	--
29.	Last accounts filed at ROC	--
30.	Major Shareholders, is available	--

NOTE

The Registered office address of the company has been shifted from 205 Laxmi Plaza, Pune Mumbai Road, Kasarwadi, Pune – 411 012, Maharashtra, India, to present address w.e.f. 24.02.2009.

OPERATIONS

Their economy started showing the signs of coming out of the worst ever financial crisis of recent times towards the end of second quarter of the year. Until the end of second quarter, the order booking was very slow, with customer’s deffering decisions on placing orders for approved projects. However, the company has received several high contribution orders and as a result, their revenues for the year mounted to Rs.208.841 millions as against Rs.263.706 millions during the previous year. The company has booked a profit of 3.830 millions as against of 26.167 millions in the during the previous year.

The steps they had initiated to improve productivity and yield, reduce and indirect expenses, instituting process improvement programs etc. in the previous year, coupled with the high contribution orders resulted in their profitability and profits during the year.

FUTURE PLANS

As is always case, they launch new product and services each year, expanding their basket of customer offering,. They have lined up several product lines for capitalizing the emerging market opportunities. Distribution agencies appointed by the company in some of the middle and south eastern countries are expected perform to their expectations during 2011-2012.

A number of international EPC companies and consultants have approved them as system suppliers for their contacts during the year end and they expect to reap rich dividends from this in the forthcoming years.

The company has plans to enhance their capacities and capabilities. By completing the construction of the second phase of the manufacturing facility during the coming year.

FORM 8

Corporate identity number of the company	U51503PN1998PTC114226
Name of the company	M. E ENERGY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Gat No. 1083/1B, Markal, Taluka Khed, Pune – 412 105, Maharashtra, India
This form is for	Modification of charge
Type of charge	· Book debts · Movable property (not being pledge)
Particular of charge holder	Canara Bank Pimpri Branch, Umed Bhavan, Pimpri, Pune – 411 018, Maharashtra, India
Nature of instrument creating charge	Supplemental Common Hypothecation Agreement
Date of instrument Creating the charge	07.05.2011
Amount secured by the charge	Rs.145.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest As per sanction letter of the Bank Terms of repayment As per sanction letter of the Bank Margin Stock - 25% and Book Debts - 30% Extent and operation of the charge OCC /ODBD/PC/FDB/FBE : Rs.50.000 Millions Sublimit ODBD : Rs.25.000 Millions TL(Fresh) : Rs.40.000 Millions ---------------------------------------------------------- Total FB : Rs.90.000 Millions Others BG : Rs.45.000 Millions ILC/FLC : Rs.10.000 Millions --------------------------------------- Total NFB : Rs.55.000 Millions Total FB and NFB : Rs.145.000 Millions
Particulars of the property charged	Hypothecation of Stock and Book Debts and other current assets of the Company, Hypothecation of Plant and Machinery, furniture and fixtures computers and other movable, all stocks of goods such as raw materials, goods in process, finished and manufactured goods and other items of stock in trade and stores, spares, components, machinery, vehicles furniture and fixtures and Mortgage of land and building situated at Gat No 1083/1B, Markal Taluka Khed, District Pune.
Particulars of the present modification	By present supplemental common hypothecation agreement dated 07^th May, 2011. OCC/ODBC/ PC/FDB/FBF have been modified from Rs.35.000 millions to Rs.50.000 millions however due to interchangeability total limits remain same.

FIXED ASSETS

· Factory Land

· Factory Shed and Building

· Office Equipment

· Plant and Machinery

· Computers, Laptops, Softwares, Scanners and UPS

· Furniture and Electrical Fittings

· Office Equipments

· 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] 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.50.27
UK Pound	1	Rs.80.07
Euro	1	Rs.68.45

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.