MIRA INFORM REPORT

Report Date :

29.11.2011

IDENTIFICATION DETAILS

Name :	MOSER BAER PHOTO VOLTAIC LIMITED

Registered Office :	43-B, Okhla Industrial Estate, New Delhi – 110020

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	07.12.2005

Com. Reg. No.:	55-143431

Capital Investment/ Paid-up Capital:	Rs. 8803.331 Millions

CIN No.: [Company Identification No.]	U40106DL2005PLC143431

TAN No.: [Tax Deduction & Collection Account No.]	DELM12892F

PAN No.: [Permanent Account No.]	AAECM4997P

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Manufacturers of Photovoltaic Cells, Modules and Systems.

No. of Employees:	600 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 19000000

Status :	Moderate

Payment Behaviour :	Slow

Litigation :	Clear

Comments :	Subject is a part of Moser Baer Group, worldwide. It is an established company having moderate track. Profitability of the company is under severe pressure. There appears huge accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

NOTES:

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

ECGC Country Risk Classification List – September 30, 2011

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

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. Sanjeev Puri
Designation :	Finance Manager
Date :	28.11.2011

LOCATIONS

Registered Office / Corporate Office :	43-B, Okhla Industrial Estate, New Delhi – 110020, India
Tel. No.:	91-11-41635201/05/ 26911570/74/ 40594444
Fax No.:	91-11-41635211/ 26911860
E-Mail :	shares@moserbaer.net pvinfo@moserbaer.in satishgupta@maserbaer.net
Website :	http://www.moserbaerpv.in
Location :	Leased

Factory :	66B, SEZ Udyog Vihar, Greater Noida – 201306, Uttar Pradesh, India
Tel. No.:	91-120-4386000/ 4658009/ 4658000
Fax No.:	91-120-2569416

Faridabad Office:	G63, Ground Floor, Vardhman Star Shop, Site No. 1, Sector 19, Faridabad, Haryana, India

Branch Office :	805-807, B Wing, 8^th Floor, Mittal Towers, MG Road, Bangalore - 560001, Karnataka, India
Tel. No.:	91-80-25590203 / 04
E-Mail :	pvsystems@moserbaer.in

PV SYSTEMS GROUP

Pune Office:	311, IIIrd Floor, Connaugh Place, 28, Bund Garden Road, Pune – 411011, Maharashtra, India
Tel. No.:	91-20-40077292

Bangalore Office:	2^nd Floor, Flat No. 202, Prestige Kada, No. 22, Richmond Road, Bengaluru – 560025, Karnataka, India
Tel No:	91-80-41482849
Fax No:	91-80-41649712
Email:	pvsystems@moserbaer.in

Overseas Office :	Japan 2-4-13-801 Hirakawa-cho, Chiyoda-ku, Tokyo 102-0093, Japan Tel.: +81-3-3288-0990 Email: mick@moserbaer.in USA Suite B, 989 Circle Blvd, Corvallis, Oregon-97330, USA Tel.: +1-541-230-1689 Fax: rajeev.krishnan@moserbaer.in USA Moser Baer Photovoltaic Inc. 111 S.W Fifth Avenue, Suite 3400, Portland, OR – 97204, USA Email: macro.lofat@moserbaer.in

DIRECTORS

As on 30.09.2011

Name :	Mr. Vineet Sharma
Designation :	Director
Address :	2344, 2^nd Floor, Hudson Line, G.T.B. Nagar, New Delhi – 110009, India
Date of Birth/Age :	17.11.1959
Date of Appointment :	21.11.2010
DIN NO:	03363062

Other Directorship:

.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	U27310DL2006PTC150623	X-Gen Power Company Private Limited	Additional director	29/11/2007	29/11/2007	-	Active	NO
2	U27104DL2005PTC144024	K R Chawla Advisory Private Limited.	Additional director	29/12/2007	29/12/2007	-	Active	NO
3	U27310DL2006PTC150697	HPC Infrastructure Private Limited	Additional director	29/12/2007	29/12/2007	-	Active	NO
4	U51909DL2006PTC152054	HN Metal Resources Private Limited	Additional director	29/12/2007	29/12/2007	-	Active	NO
5	U40102DL2007PTC167030	HN Power Generation Private Limited	Additional director	29/12/2007	29/12/2007	-	Active	NO
6	U80301DL2006PTC151877	K.R.Chawla Educational Services Private Limited	Additional director	29/12/2007	29/12/2007	-	Active	NO
7	U27101DL2006PTC150698	HP Metals Private Limited	Additional director	5/1/2008	5/1/2008	-	Active	NO
8	U40101DL2007PTC167068	Ojjus Power Generation Private Limited	Additional director	10/1/2008	10/1/2008	-	Active	NO
9	U40102DL2008PTC172977	HPC Power Projects Private Limited	Additional director	10/2/2008	10/2/2008	-	Active	NO
10	U55101DL2008PTC179302	Mansion Hotels Private Limited	Additional director	10/8/2008	10/8/2008	-	Active	NO
11	U85100DL2008PTC173924	Ojjus Medical and Research Institute (Jaipur) Private Limited	Additional director	10/1/2009	10/1/2009	-	Active	NO
12	U40106DL2005PLC143431	Moser Baer Photo Voltaic Limited	Director	30/09/2011	21/11/2010	-	Active	NO
13	U62100DL2008PLC174300	Ojjus Airlines Limited	Additional director	1/5/2011	30/12/2010	-	Active	NO
14	U24100DL2006PLC149992	Ojjus Pharmacy Limited	Additional director	1/5/2011	30/12/2010	-	Active	NO
15	U45400DL2007PLC168730	Karina Developers Limited	Additional director	1/5/2011	30/12/2010	-	Active	NO
16	L51909DL1983PLC015418	Moser Baer India Limited	Director	29/09/2011	31/03/2011	-	Active	NO
17	U45400DL2008PTC172981	HC Power Projects Private Limited	Additional director	8/8/2011	8/8/2011	-	Active	NO
18	U40300DL2008PTC172975	Conquer Power Projects Private Limited	Additional director	8/8/2011	8/8/2011	-	Active	NO

Name :	Sunita Mowdgal
Designation :	Director
Address :	K – 2035, 2^nd Floor, Chitranjan Park, New Delhi – 110019, India
Date of Birth/Age :	20.10.1951
Date of Appointment :	21.11.2010
DIN NO:	03352181

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	U40106DL2005PLC143431	Moser Baer Photo Voltaic Limited	Director	30/09/2011	21/11/2010	-	Active	NO
2	U74140DL2003PTC118916	K R Chawla Consulting Private Limited	Additional director	11/5/2011	11/5/2011	-	Active	NO
3	U74999DL2007PLC160162	Moser Baer Solar Limited	Director	30/09/2011	27/07/2011	-	Active	NO

Name :	Mr. Jatinder Singh Bedi
Designation :	Managing Director
Address :	B – 277, 2^nd Floor, Chitranjan Park, New Delhi – 110019, India
Date of Birth/Age :	19.10.1949
Date of Appointment :	21.11.2010
Date of Ceasing:	31.10.2011
DIN NO:	00290644

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	U70101DL1991PTC043051	Bedi Apartments Private Limited	Director	12/2/1991	12/2/1991	-	Active	YES
2	U51525DL1994PTC059287	JSB Exports Private Limited	Director	30/05/1994	30/05/1994	-	Under Process of Striking off	NO
3	U74140DL2003PTC118916	K R Chawla Consulting Private Limited	Director	9/2/2004	9/2/2004	31/03/2009	Active	NO
4	U70101DL2002PTC117107	HN Properties Private Limited	Director	12/2/2004	12/2/2004	31/03/2009	Active	NO
5	U70101DL2004PTC124645	HN Reacon Private Limited	Director	13/02/2004	13/02/2004	3/1/2008	Active	NO
6	U45201DL2004PTC125125	Ojjus Medicare Private Limited	Additional director	10/5/2005	10/5/2005	10/9/2007	Active	NO
7	U29248DL1996PTC079388	Karina Airlines Private Limited	Director	1/3/2006	1/3/2006	30/12/2007	Active	NO
8	U74140DL1999PTC102546	Karina Human Resources Private Limited	Director	1/3/2006	1/3/2006	7/7/2008	Active	NO
9	U24297DL2005PTC143364	Eden Biotechnology Private Limited	Director	15/03/2006	15/03/2006	11/1/2010	Active	NO
10	U27101DL2006PTC150698	HP Metals Private Limited	Director	8/7/2006	8/7/2006	30/12/2007	Active	NO
11	U27310DL2006PTC150697	HPC Infrastructure Private Limited	Director	8/7/2006	8/7/2006	30/12/2007	Active	NO
12	U51909DL2006PTC152054	HN Metal Resources Private Limited	Director	17/08/2006	17/08/2006	30/12/2007	Active	NO
13	U45400DL2007PTC170177	Bedi Reacon Private Limited	Director	5/11/2007	5/11/2007	-	Active	NO
14	U40106DL2005PLC143431	Moser Baer Photo Voltaic Limited	Managing director	31/03/2011	21/11/2010	31/10/2011	Active	NO

KEY EXECUTIVES

Name :	Mr. Rohit Kashyap
Designation :	Company Secretary
Address :	D – 90 A, Ground Floor, Sector – 15, Gautam Budh Nagar, Noida – 201301, Uttar Pradesh, India
Date of Birth/Age :	12.08.1986
Date of Appointment :	27.06.2011
PAN NO:	ASDPK5554E

Name :	Mr. Sanjeev Puri
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders (Equity Shares)		No. of Shares
Moser Baer Solar Limited, India		281079974
Deepak Puri (As nominee of Moser Baer Solar Limited)		1
Ratul Puri (As nominee of Moser Baer Solar Limited)		1
Yogesh Bahadur Mathur (As nominee of Moser Baer Solar Limited)		1
Vijay Kumar (As nominee of Moser Baer Solar Limited)		1
Gautam Samanta (As nominee of Moser Baer Solar Limited)		1
Rohit Kashyap (As nominee of Moser Baer Solar Limited)		1
Total		281079980

Names of Shareholders (Preference Shares)		No. of Shares
Moser Baer India Limited, India		86500000
Value Solar Energy Private Limited, India		55568850
Moser Baer Solar Limited, India		26021466
Value Solar Energy Private Limited, India		4275034
Moser Baer Solar Limited, India		33887760
Value Solar Energy Private Limited, India		393000000
Total		599253110

Equity Share Break up (Percentage of Total Equity)

(AS ON 30.09.2011)

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Photovoltaic Cells, Modules and Systems.

Products :

Product Description	ITC Code
Photovoltaic Cells and Modules	8541.40

PRODUCTION STATUS (As on 31.03.2009)

Particulars	Installed Capacity (MW)1	Actual Production (MW)2
Cell Line	80	31.10
High Concentrator (HC)	3.5	1.19
Module Line	80	26.76

NOTE

1. As certified by the management and on which auditors have placed reliance, this being a technical matter.

2. Includes cells and modules utilized for captive consumption.

GENERAL INFORMATION

No. of Employees :

600 (Approximately)

Bankers :

Canara Bank, Prime Corporate Branch – II, 2^nd Floor, World Trade Tower, Barakhamba Lane, New Delhi – 110001, India
Union Bank of India, Industrial Finance Branch, M-11, Connaught Circus, New Delhi – 110001, India

Facilities :

Particulars	As on 31.03.2010 (Rs. In Millions	As on 31.03.2009 (Rs. In Millions)
Secured Loans
Term Loans (Refer Note 1 and 3)
From Banks: Rupee Loans	2209.874	972.806
Add: Interest accrued and due	25.689	5.094
From Others: Foreign Currency Loan	1010.475	1141.425
Other Loans:
Short Term Loans from Banks:
Rupee Loans	1462.000	2143.344
Foreign Currency Loan	2916.125	305.437
Secured by Lien on Fixed Deposits	136.837	84.024
Foreign Currency Loan Secured by Lien on Fixed Deposits	0.000	86.721
Total	7761.000	4738.851

NOTES

1. Rupee Term Loans from Oriental Bank of Commerce and Punjab National Bank and Foreign Currency. Term Loan from International Finance Corporation are secured by way at first pari-passu charge on all the moveable and immoveable fixed assets (both present and future) of the Company.

2 Short Term Rupee Loans from Oriental Bank of Commerce, UCO Bank and Bank of Baroda and Short Term Foreign Currency Loans from Oriental Bank of Commerce and UCO Bank are secured by a first charge by way of hypothecation on pari-passu basis on all the present and future current assets of the company and further secured by way of a second charge on pari-passu basis on all the moveable and immoveable fixed assets of the company.

Short Term Foreign Currency Loan from State Bank of Bikaner and Jaipur are secured by a first pari – passu charge by way of hypothecation on the entire stocks of inventory, receivables, bills and other chargeable current assets of the company both present and future.

Short term foreign currency loan from State bank of Patiiala secured by first pari passu charge by way of hypothecation over movable fixed assets of the company (both present and future)

3 Rupee Term Loans from UCO Bank are secured by way of first pari passu charge on current assets (both present and future) of the company and future secured by way of a second charge on pari –passu basis on all the movable fixed assets of the company.

4. Rupee Term Loans from State Bank of Bikaner and Jaipur are secured by way of pari passu charge on current assets (both present and future) of the company.

5. Principal amount of term loan repayable within one year Rs. 586.504 Millions (Previous Year Rs. 204.170 Millions)

Particulars	As on 31.03.2010 (Rs. In Millions	As on 31.03.2009 (Rs. In Millions)
Unsecured Loan
Short Term Loans from Banks: Rupee Loans	0.000	2001.870
Add: Interest accrued and due	0.000	23.773
Foreign Currency Loan USD Nil	0.000	0.000
Other Loans: From Ultimate Holding Company, Moser Baer India Limited	0.000	0.000
Add: Interest accrued and due	0.000	0.000
From Holding Company, PV Technologies India Limited	0.000	1783.901
Add: Interest accrued and due	0.000	59.827
Finance Lease Liability Amount payable within one year Rs.5.451 millions)	355.965	357.315
Total	355.965	4226.686


Banking Relations :	--

Auditors :
Name :	Price Waterhouse Chartered Accountants
Address :	Building 8, 7^th and 8^th Floor, Tower-B, DLF Cyber City, Gurgaon-122 002, Haryana, India
PAN No.:	AAEFP5579P

Holding Company :	Moser Baer India Limited CIN No.: U74999DL2007PLC160162

Subsidiaries :	Admire Energy Solutions Private Limited CIN No.: U40100DL2008PTC175762 Arise Solar Energy Private Limited CIN No.: U40106DL2008PTC175987 Competent Solar Energy Private Limited CIN No.: U74900DL2008PTC177408 Pride Solar Systems Private Limited CIN No.: U40106DL2008PTC175725 Value Solar Energy Private Limited CIN No.: U74900DL2008PTC177409 Perafly Limited, Cyprus Dalecrest Limited, Cyprus Nicofly Limited, Cyprus Perasoft Limited, Cyprus Crownglobe Limited, Cyprus

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
301079980	Equity Shares	Rs.10/- each	Rs.3010.800 Millions
651253110	Preference Shares	Rs.10/- each	Rs.6512.531 Millions
	Total		Rs.9523.331 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
281079980	Equity Shares	Rs.10/- each	Rs.2810.800 Millions
599253110	Preference Shares	Rs.10/- each	Rs. 5992.531 Millions
	Total		Rs. 8803.331 Millions

NOTES

1. Series A’ preference shares are optionally redeemable after 7 years from the date of allotment (March 29.2014 for 82851150 shares and September 2, 2014 for 3648850 shares and optionally) convertible into ordinary equity shares of the Company in case of erosion of net worth by 50% or more in any one financial year subject to the preference shares being compulsorily redeemed within 20 years from the date of allotment thereof (March 29, 2027 for 82851150 shares and September 2, 2027 for 3648850 shares) These shares for both the above year ends are held by the Ultimate Holding Company, Moser Beer India Limited (MBIL).

2. Optionally redeemable preference shares subject to compulsory redemption within 20 years from the date of allotment thereof (March 29, 2027, September 2, 2027, August 15, 2028 and March 18, 2028 for 55568850 ‘Series B’ Preference Shares, 29050000 ‘Series B-1’ Preference Shares, 1246500 ‘Series B-1’ Preference Shares and 33887760 ‘Series B-2’ preference shares, respectively).

55568850 (Previous Year 55568850) ‘Series B’ Preference Shares and 4275034 (Previous Year 4275034) ’Series B-1’ Preference Shares are held by the Holding Company. PV Technologies India Limited 26021466 (Previous Year 26021466) ‘Series B-1’ Preference Shares and 33887760 (Previous Year 33887760) ‘Series B-2’ Preference Shares are held by Moser Beer India Limited (MBIL).

3. Series C preference shares are subject to compulsory redemption within 20 years from the date of allotment thereof (March 26, 2030 for 296000000 shares and March 31, 2030 for 97000000 shares) at 9% premium compounded quarterly. These shares are held by the Holding Company. PV Technologies India Limited.

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		8803.331	4873.331	2335.066
2] Share Application Money		0.000	0.000	532.800
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(4116.370)	(2355.786)	(685.591)
NETWORTH		4686.961	2517.545	2182.275
LOAN FUNDS
1] Secured Loans		7761.000	4738.851	3352.866
2] Unsecured Loans		355.965	4226.686	1116.434
TOTAL BORROWING		8116.965	8965.537	4469.300
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		12803.926	11483.082	6651.575

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		2970.940	3271.750	1363.650
Capital work-in-progress		1033.709	1238.201	783.750

INVESTMENT		924.433	872.841	1202.323
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2046.986	1996.317	1040.987
	Sundry Debtors	1190.444	838.162	645.810
	Cash & Bank Balances	2500.996	1059.531	929.562
	Other Current Assets	107.908	88.940	70.045
	Loans & Advances	5341.135	3193.168	1233.352
Total Current Assets		11187.469	7176.118	3919.756
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1743.917	901.826	426.205
	Other Current Liabilities	1465.878	120.958	176.785
	Provisions	102.830	53.044	14.914
Total Current Liabilities		3312.625	1075.828	617.904
Net Current Assets		7874.844	6100.290	3301.852

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		12803.926	11483.082	6651.575

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	4453.261	3412.971	1694.005
		Other Income	819.176	280.508	96.168
		TOTAL (A)	5272.437	3693.479	1790.173

Less	EXPENSES
		Raw materials and components consumed	4509.014	4001.056	1725.952
		Packing Materials Consumed	39.233	38.241	10.318
		Stores, Spares and Tools Consumed	76.213	64.585	34.731
		Cost of Traded Goods	72.814	0.000	0.000
		Personnel Expenses	379.672	331.626	179.472
		Administration and Other Expenses	722.803	571.154	180.708
		Increase in stock of finished goods and work in progress	(88.610)	(897.002)	(245.497)
		Prior Period Expenses	0.000	8.180	0.000
		Exceptional Item	0.000	343.494	0.000
		TOTAL (B)	5711.139	4461.334	1885.684

Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(438.702)	(767.855)	(95.511)

Less	INTEREST AND FINANCIAL EXPENSES (D)		986.604	723.367	308.569

	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(1425.306)	(1491.222)	(404.080)

Less/ Add	DEPRECIATION/ AMORTISATION (F)		334.202	180.853	102.870

	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(1759.508)	(1672.075)	(506.950)

Less	TAX (H)		1.076	4.534	2.711

	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(1760.584)	(1676.609)	(509.661)

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(2355.786)	(685.591)	NA

Less	ADJUSTMENT TO THE DIFFERENCE ARISING ON LONG TERM FOREIGN CURRENCY MONETARY LIABILITIES		0.000	(6.414)	NA

	BALANCE CARRIED TO THE B/S		(4116.370)	(2355.786)	NA

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings		3133.362	1248.519
		Interest		1.834	3.809
	TOTAL EARNINGS		3878.000	3135.196	1252.328

	IMPORTS
		Raw Materials		4327.432	1901.898
		Capital Goods		621.879	783.331
		Stores & Spares		116.236	84.004
		Packing Material		0.000	0.145
	TOTAL IMPORTS		NA	5065.547	2769.378

	Earnings (Loss) Per Share (Rs.)		(7.04)	(12.93)	(23.74)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(33.39)	(45.39)	(28.47)

Net Profit Margin (PBT/Sales)	(%)	(39.51)	(48.99)	(29.93)

Return on Total Assets (PBT/Total Assets}	(%)	(12.43)	(16.00)	(9.60)

Return on Investment (ROI) (PBT/Networth)		(0.37)	(0.66)	(0.23)

Debt Equity Ratio (Total Liability/Networth)		2.44	3.99	2.33

Current Ratio (Current Asset/Current Liability)		3.38	6.67	6.34

LOCAL AGENCY FURTHER INFORMATION

MARKET ENVIRONMENT AND OUTLOOK

While the financial year 2009-10 ended with a rebound of the Solar Industry and the market, the year had started out as a challenging one for the global solar industry, given the rolling effect of the global economic meLimitedown, the consequent credit crunch and an unexpected cap in the incentive program by the Spanish Government. Added to this was the huge capacity build-up of photovoltaic capacities in Asia and the huge consequent demand-supply mismatch and the downturn of the previous year continued till September 2009.

However, after a dull first half, growth rebounded in the second half of the year with improving credit conditions and a firming up of demand. All major markets remained firm, with the strongest growth evident in Germany, Italy and Japan. Moreover new markets like USA, Czech Republic, Belgium, France and India are now emerging with attractive incentive programmes and increasing the size of the overall market pie. The December rush for installations in Germany resulted in an upward revision in the estimated annual installations for the industry at 7.2 GW for 2009 as compared to 6.3 GW in 2008 as per European Photovoltaic Industry Association. This added up to cumulative installations of 22GW worldwide till 2009 end. However, selling prices remained a challenge during the year. In view of the market expansion, on the distribution and marketing side, the Company has taken a decision to go direct to the customers in order to develop the feel of the market and to help serve customers better.

AN OVERVIEW OF THE DEVELOPMENTS

The India Advantage: Taking a giant leap towards sustainable and clean solar energy, the Government of India officially launched the ambitious ‘National Solar Mission’ in January 2010 — a comprehensive plan envisaging a goal of 20,000 MW of grid interactive solar power and 2,000 MW of off-grid applications in / three stage plan by 2022.

Application Segment	Target — Phase I (FY’ 10-13)	Target — Phase II (FY’ 13.17)	Target — Phase III (FY’ 17-22)
Solar Collectors (In mn sq. mts)	7	15	20
Off-grid solar applications (In MW)	200	1000	2000
Utility grid power (In MW)	1100	4000	20000

This is an unprecedented joint initiative of Ministry of Power and Ministry of New and Renewable Energy (MNRE) and has attracted the attention of the PV industry worldwide. With this, India is set to emerge as a global leader in deployment and manufacturing of solar energy technologies given its favourable natural characteristics, high energy requirements and strong government support.

As stated in the Mission Document of the Jawaharlal Nehru National Solar Mission, the mission has set up a solar energy purchase obligation for utilities that will be required to source 0.25% of their electricity requirement from solar energy sources by 2013, increasing gradually to 3% by 2022. NTPC Vidyut Vyapar Nigam Limited.(NVVN), a wholly owned subsidiary of India’s AAA-rated national power utility NTPC has been entrusted by the government to sign PPAs and off-take solar power from independent solar power projects up to March 2013 under Phase I. at rates fixed by Central Electricity Regulatory Commission (CERC) for a period of 25 years. This ensures high binkability of projects. CERC has fixed attractive solar feed-in tariff (FiT) at Rs 17.91/kWh leading to pre-tax returns of 19% for the first 10 years and 24% from the 11th year onwards. This has generated huge interest from developers, installers and investors and a rush of financial closures are expected as soon as the Power Purchase Agreements are finalised by NVVN in the next few months.

As a result, the Company’s EPC business, including designing, engineering, procurement, installation and commissioning has received significant stimulus. The Company has successfully commissioned the ‘largest of its kind thin film project in India’ - 1MW solar project in Chandrapur, Maharashtra for the state utility ‘Mahagenco’, using its sytems design capability and the modules supplied by its affiliate PV Technologies India Limited.

The Company is also in the process of executing a 5MW project in Tamilnadu with planned commissioning in the next two months. This will be the largest solar photovoltaic project in the country.

The Global Scenario: With improving economic environment and strong market fundamentals driven by policy developments across the globe, Market intelligence and research firms have raised their global demand estimates for 2010 and beyond. Installations are now expected to be in the range of 10-14 GW in 2010. Though Germany is likely to witness cuts in Fit during 2010, a lot of action on the policy front can be seen across other countries. Thus we expect the market to continue to expand exponentially in the medium term. The Fit’s for UK are effective from April 2010. Australia has set a target of 20% of its total energy generation through renewable energy sources by 2020 under renewable energy target (RET) scheme. France has established the world’s highest Fit’s in January 2010, for building integrated systems in residential, healthcare and educational segments. Other markets that are expected to witness strong growth are United States and India.

The Company had announced plans to establish a new SEZ unit with additional capacity for crystalline silicon solar cells and modules. However, the continued losses and the high gearing of the Company delayed the new project. Finally, after a lot of deliberations, it was decided by the Board that the Company is not in a financial position to carry on with the new project and it has accordingly requested another affiliate to take over this project and reimburse any advances paid. The Company is thus able to exit its commitments at no loss to the Company and the dispute with the equipment vendor has also been amicably resolved.

Bankers Charges Report as per Registry

Corporate identity number of the company	U40106DL2005PLC143431
Name of the company	MOSER BAER PHOTO VOLTAIC LIMITED
Address of the registered office or of the principal place of business in India of the company	43-B, Okhla Industrial Estate, New Delhi – 110020, India
This form is for	Creation of charge
Type of charge	Book Debts Others (Current Assets)
Particular of charge holder	State Bank of Bikaner and Jaipur, G-72, Connaught Circus, New Delhi – 110001, India
Nature of description of the instrument creating or modifying the charge	Agreement of Hypothecation of Goods and Assets dtd.17th August 2009
Date of instrument Creating the charge	17.08.2009
Amount secured by the charge	Rs.1326.600 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Term Loan: At par with BPLR Cash credit: currently 13.25% p.a., EPC: 2.75% below BPLR, i.e., 10.5% p.a., PCFC: As prescribed Terms of Repayment: Term Loan of Rs.826.600 millions: 7 monthly installments (1st installment of Rs.12.338 millions and six installments each of Rs.12.337 millions) during the financial year 2009-10 commencing from September 2009 and 60 monthly installments each of Rs.12.337 millions thereafter CC/PCFC/EPC: Working capital facilities are payable within a period of one year. Margin: Term Loan: Nil CC/PCFC/EPC: 25% uniform on stocks and book debts (up to 90 days). 25% on PCFC/EPC. However, at any moment of time, the EPC outstanding will not exceed the value of LCs/confirmed orders. Extent and Operation of the charge: Term Loan: First pari passu charge by way of hypothecation over current assets of the Company, both present and future Working Capital facilities: First pari passu charge by way of hypothecation on the entire stocks of inventory, receivables, bills and other chargeable current assets of the Company both present and future. Others: 1) Interest/discount/commission on FBP/FBD/Docy (within CC/EPC/PCFC limit) is 2.75% below BPLR 2) Additional comfort: Assignment of Bank Guarantee of USD 48 million issued by China Merchants Bank on behalf of LDK, China in favour of State Bank of Bikaner and Jaipur to the extent of term loan on proportionate sharing basis among the Term Lenders for reimbursement of the advance paid (Bank’s share minimum Rs.826.600 millions) 3) Corporate Guarantee of Moser Baer India Limited
Short particulars of the property charged	First pari passu charge by way of hypothecation over current assets of the Company, both present and future

CONTINGENT LIABILITIES:

(Rs. In Millions)

Particulars	31.03.2009
Bank Guarantees	4336.150
Claims against the Company for acknowledged as debts	35.853

FIXED ASSETS:

Plant and Machinery
Furniture and Fixture
Office Equipment
Computers
Vehicles
Building

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.51.98
UK Pound	1	Rs.80.58
Euro	1	Rs.69.12

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	-
--CREDIT LINES	1~10	3
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		29

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.

MIRA INFORM REPORT

2046.986

1996.317

1190.444

838.162

2500.996

1059.531

107.908

88.940

5341.135

3193.168

11187.469

1743.917

901.826

1465.878

120.958

102.830

53.044

3312.625

7874.844

(33.39)

(45.39)

(28.47)

(39.51)

(48.99)

(29.93)

(12.43)

(16.00)

(9.60)

(0.37)

(0.66)

(0.23)

2.44

3.99

3.38

6.67

Unit