1. Summary Information

		Country	India
Company Name	Titan Energy Systems Limited	Principal Name 1	Mr. Chodagam Santhi Yogananda Sankar Rao
Status	Satisfactory	Principal Name 2	Mr. Hayagreeva Ravikumar Puranam
		Registration #	01-19206
Street Address	16, Aruna Enclave, Tirumalghery, Secunderabad – 500 015, Andhra Pradesh, India
Established Date	13.01.1995	SIC Code	--
Telephone#	91-40-27791085 / 0751/ 27795629 / 64630900 / 64630901	Business Style 1	Manufacturing
Fax #	91-40-27795629	Business Style 2	Exporting
Homepage	http://www.titansolar.com http://www.titan-energy.com	Product Name 1	Solar Photovoltaic Modules
# of employees	200 Approximately (Office: 30 and in Factory: 170)	Product Name 2	--
Paid up capital	Rs.88,586,150/-	Product Name 3	--
Shareholders	Foreign holdings (9.04%) Bodies corporate (0.02%) Directors or relatives of directors (90.94%)	Banking	State Bank of Hyderabad
Public Limited Corp.	NO	Business Period	16 Years
IPO	NO	International Ins.	-
Public Enterprise	NO	Rating	Ba (48)
Related Company
Relation	Country	Company Name	CEO
Related Companies	--	Titan Consultants and Services Limited	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2010		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	436,647,000	Current Liabilities	429,138,000
Inventories	573,890,000	Long-term Liabilities	556,203,000
Fixed Assets	137,968,000	Other Liabilities	19,005,000
Deferred Assets	0,000	Total Liabilities	1,004,346,000
Invest& other Assets	158,520,000	Retained Earnings	214,093,000
		Net Worth	302,679,000
Total Assets	1,307,025,000	Total Liab. & Equity	1,307,025,000
Total Assets (Previous Year)	1,099,652,000
P/L Statement as of	31.03.2010		(Unit: Indian Rs.)
Sales	1,415,388,000	Net Profit	34,020,000
Sales(Previous yr)	1,709,460,000	Net Profit(Prev.yr)	78,514,000

MIRA INFORM REPORT

Your Ref. No.:

135-275651-02-020(20111007533)

Report No. :	156693
Report Date :	13.10.2011

IDENTIFICATION DETAILS

Name :	TITAN ENERGY SYSTEMS LIMITED
Registered Office :	16, Aruna Enclave, Tirumalghery, Secunderabad – 500 015, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	13.01.1995
Com. Reg. No.:	01-19206
Capital Investment / Paid-up Capital :	Rs.88.586 millions
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 :	Manufacturer and Exporter of Titan Solar Photovoltaic Modules and Pannels.
No. of Employees :	200 Approximately (Office: 30 and in Factory: 170)

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 1200000
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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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

LOCATIONS

Registered Office :	16, Aruna Enclave, Tirumalghery, Secunderabad – 500 015, 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 http://www.titan-energy.com
Location :	Owned
Branch/ Factory :	P. O. Box No. 6, Ravalkole Village, Medchal – 501 401, Andhra Pradesh, India
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 30.09.2010

Name :	Mr. Chodagam Santhi Yogananda Sankar Rao
Designation :	Managing Director
Address :	Plot No. 16, Aruna Enclave, Trimulgherry, Secunderabad – 500 015, Andhra Pradesh, India
Date of Birth :	29.12.1948
Qualification :	B.E., Graduate
Date of Appointment :	02.02.1995
DIN No.:	00408828

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	U31300AP1991PLC012185	Titan Consultants And Services Limited	Director	08-01-91	08-01-91	-	Active	YES
2	U31909AP1991PTC012962	Titan Technocracts Private Limited	Director	18-07-91	18-07-91	-	Active	YES
3	U31200AP1995PLC019206	Titan Energy Systems Limited	Managing director	01-10-06	02-02-95	-	Active	NO
4	U74900AP2009PTC062628	Belectric Solar India Private Limited	Director	28-01-09	28-01-09	-	Active	NO

Name :	Mr. Hayagreeva Ravikumar Puranam
Designation :	Director
Address :	501 Yashowan Towers, Behind Mahim Post Office, T. H. Kataria Marg, Mahim-West, Mumbai – 400 016, Maharashtra, India
Date of Birth/Age :	20.07.1951
Date of Appointment :	28.07.2009
DIN No.:	00280010

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	L25209PN1961PLC012046	Bharat Forge Limited	Director	24-07-09	03-04-01	-	Active	NO
2	L31402WB1934PLC007993	Eveready Industries India Limited	Director	24-07-09	31-08-01	-	Active	NO
3	U51909MH2003PLC140116	National Commodity And Derivatives Exchange Limited	Managing director	23-04-03	23-04-03	26-04-08	Active	NO
4	L65191KL1931PLC000368	The Federal Bank Limited	Director	27-09-04	27-09-04	03-09-11	Active	NO
5	U74140MH2004PLC148859	National Collateral Management Services Limited	Director	28-09-04	28-09-04	08-05-08	Active	NO
6	U74999MH2003GOI143150	Nabard Consultancy Services Private Limited	Director	10-05-07	18-01-05	10-05-09	Active	NO
7	L65999AP2003PLC041732	SKS Microfinance Limited	Director	22-03-06	22-03-06	-	Active	NO
8	L45200MH1989PLC050688	Ackruti City Limited	Director	06-09-07	12-05-06	11-03-11	Active	NO
9	U93090MH2006PLC165172	NCDEX Spot Exchange Limited	Director	18-10-06	18-10-06	07-06-08	Active	NO
10	U74992MH2006PLC163550	National Commodity Clearing Limited	Additional director	23-08-07	23-08-07	23-04-08	Active	NO
11	U74900MH2007NPL174229	NCDEX Institute of Commodity Markets and Research	Director	18-09-07	18-09-07	13-06-08	Active	NO
12	U65910KL1995PLC008910	Fedbank Financial Services Limited	Director	24-09-07	24-09-07	-	Active	NO
13	U74900MH2008PLC179152	Power Exchange India Limited	Director	20-02-08	20-02-08	07-05-08	Active	NO
14	U67110MH2008PLC187576	United Stock Exchange of India Limited	Director	15-10-08	15-10-08	16-02-10	Active	NO
15	U67190MH2007PTC172390	ABP Realty Advisors Private Limited	Director	22-12-08	28-11-08	15-10-09	Active	NO
16	U31200AP1995PLC019206	Titan Energy Systems Limited	Director	30-09-09	28-07-09	-	Active	NO
17	U65999MH1996GOI098009	BOB Capital Markets Limited	Director appointed in casual vacancy	17-09-09	17-09-09	-	Active	NO
18	U74999MH2003PTC139774	Invent Assets Securitisation And Reconstruction Private Limited	Managing director	02-02-10	02-02-10	-	Active	NO
19	U74140MH2008PTC179360	Aditya Birla Capital Advisors Private Limited	Director	29-07-11	21-01-11	-	Active	NO
20	U66010MH2007PLC167164	IDBI Federal Life Insurance Company Limited	Director	18-08-11	01-02-11	-	Active	NO
21	L45202WB1961PLC025181	Mcnally Bharat Engg Company Limited	Additional director	06-05-11	06-05-11	-	Active	NO
22	U74900AP2008PTC059345	Shasta Bio-Fuels Private Limited	Additional director	19-08-11	19-08-11	-	Active	NO

Name :	Mr. Chodagam Ravi Kiran
Designation :	Director
Address :	APT 3, 29 Scofieldave, Stamford, 069061700, United States of America
Date of Birth/Age :	10.01.1974
Date of Appointment :	23.05.2002
DIN No.:	02539555

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	U31300AP1991PLC012185	Titan Consultants And Services Ltd	Director	01-08-91	01-08-91	Active	YES
2	U31200AP1995PLC019206	Titan Energy Systems Limited	Director	23-05-02	23-05-02	Active	NO

Name :	Mr. Chodagam Sasidhar
Designation :	Director
Address :	APT 3, 29 Scofieldave, Stamford, 069061700, United States of America
Date of Birth :	03.11.1975
Date of Appointment :	01.02.2005
DIN No.:	02671282

Name :	Mrs. Chodagam Aruna
Designation :	Whole Time Director
Address :	Plot No. 16, Aruna Enclave, Trimulgherry, Secunderabad – 500 015, Andhra Pradesh, India
Date of Birth :	13.12.1954
Qualification :	B.A., Graduate
Date of Appointment :	02.02.1995
DIN No.:	00408820

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	U31300AP1991PLC012185	Titan Consultants And Services Limited	Director	08-01-91	08-01-91	Active	YES
2	U31909AP1991PTC012962	Titan Technocracts Private Limited	Director	18-07-91	18-07-91	Active	YES
3	U31200AP1995PLC019206	Titan Energy Systems Limited	Whole-time director	01-10-07	02-02-95	Active	NO

Name :	Mr. Harshavardhana Rao Yerramneni
Designation :	Whole Time Director
Address :	D No. 11-4-680 Apartment No. 408, Ashok Chandra enclave, Red Hills AC Guards, Lakadikapul, Hyderabad – 500 016, Andhra Pradesh, India
Date of Birth :	10.08.1947
Date of Appointment :	03.05.2010
Name :	Mr. Venkataraman Subramanian
Designation :	Director
Address :	M-104, Ground Floor, Greater Kailash Part II, New Delhi – 110 048, India
Date of Birth :	17.06.1948
Date of Appointment :	09.10.2010
DIN No.:	00357727

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	U40108DL1987GOI027265	Indian Renewable Energy Development Agency Limited	Director	01-02-06	01-02-06	26-06-07	Active	NO
2	L15543HP1991PLC019065	Mount Everest Mineral Water Limited	Director	31-07-09	30-09-08	-	Active	NO
3	U40106DL2008PLC181648	PTC Energy Limited	Director	25-09-09	10-12-08	-	Active	NO
4	U74120HR2008PTC037774	WindForce Management Services Private Limited	Director	23-12-08	23-12-08	-	Active	NO
5	U64202DL2003PTC122745	Acira Solar Private Limited	Director	30-12-08	30-12-08	-	Active	NO
6	L35999TN1962PLC004792	Sundaram -Clayton Limited	Director	29-09-09	15-07-09	-	Active	NO
7	U40101TN2005PTC058237	Auro Mira Energy Company Private Limited	Director	27-08-09	27-08-09	08-04-11	Active	NO
8	U40109TN2008PLC069101	TVS Energy Limited	Director	30-07-10	15-12-09	-	Active	NO
9	U40108AP2009PTC065903	GreenPro Industries Private Limited	Director	30-01-10	30-01-10	-	Active	NO
10	U74140WB2010PTC141636	Gravitational Network Advisors Private Limited	Director	10-03-10	10-03-10	-	Active	NO
11	U31200AP1995PLC019206	Titan Energy Systems Limited	Director	09-10-10	09-10-10	-	Active	NO
12	U40109AP2009PTC064018	Lanco Solar Energy Private Limited	Additional director	22-01-11	22-01-11	-	Active	NO
13	L40101DL1969GOI005095	Rural Electrification Corporation Limited	Director	10-06-11	10-06-11	-	Active	NO

KEY EXECUTIVES

Name :	Ms. Madhavi Lata
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
C. S. Y. S. Rao	3610976
Chodagam Sasidhar	1961287
Chodagam Aruna	1504574
BLITZ	800934
Titan Consultants and Services Limited, India	100
Titan Technocrats Private Limited, India	100
Chodagam Ravi Kiran	980644
Total	8858615

As on 30.09.2010

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	9.04
Bodies corporate	0.02
Directors or relatives of directors	90.94
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Titan Solar Photovoltaic Modules and Pannels.

Products :

Product Description	Item Code
Solar Photovoltaic Modules	8541.40

PRODUCTION STATUS 31.03.2010

Particulars	Installed Capacity	Actual Production
Modules	96 MW	11.06 MWp

GENERAL INFORMATION

Suppliers :

· Schott Solar

· Motech

· Suniva

· Q.Cells

· Ulbrich

· STR

· Krempel

· Madico

Customers :

· Scatec Solar

· Enfinity

· Schott Solar

· Genval

No. of Employees :

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

Bankers :

· State Bank of Hyderabad

Samajibada, Hyderabad, Andhra Pradesh, India

· Barclays Bank Plc

601/603, Ceejay House, Shivsagar Estate, Dr. Annie Besant Road, Worli, Mumbai – 400 018, Maharashtra, India

· 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,

Begumpel Branch, Hyderabad, Andhra Pradesh, India

· Axis Bank Limited

Hyderabad, Andhra Pradesh, India

· State Bank of India,

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

· ICICI Bank Limited

Facilities :

Secured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
State Bank of India Packing Credit A/C 30282802442 (secured by hypothecation of stocks and book debts)	0.000	141.110
State Bank of India-Cash credit A/C No.3459	393.829	17.958
State Bank of India-term loan A/C No.2425	5.696	28.451
State Bank of India - Term Loan A/C No.9244 (Secured by hypothecation of fixed assets)	53.722	76.370
ICICI Bank Limited-Term Loan	85.000	85.000
State Bank of India Trade A/C 30320388176	16.166	0.000
Vehicle Loans
Car Loans (secured by hypothecation of car)	0.000	0.040
Tata Motors Finance Limited-Sumo	0.042	0.213
Axis Bank Limited Indica Car Loan A/C 84341	0.137	0.232
Axis Bank Limited Loan A/C Corolla 8013 (80254)	0.496	0.844
Kotak Mahindra Prime Limited	0.042	0.536
Citi Bank Home Loan A/C 1106163 (secured by hypothecation of building)	1.073	1.979
Total	556.203	352.733

Banking Relations :	--
Auditors :
Name :	PRV Associates Chartered Accountants
Address :	3-6-203, Ground Floor, Himayath Nagar, Hyderabad – 500 029, Andhra Pradesh, India
Tel. No.:	91-40-23227651/ 23227114
Fax No.:	91-40-23223289
Related Companies :	· Titan Consultants and Services Limited · Titan Technocrats Private Limited

CAPITAL STRUCTURE

After 30.09.2010

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10030490	Equity Shares	Rs.10/- each	Rs.100.305 millions

As on 31.03.2010

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

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

Note : 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		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		88.586	80.093	26.698
2] Share Application Money		0.000	6.577	6.827
3] Reserves & Surplus		214.093	180.073	154.955
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		302.679	266.743	188.480
LOAN FUNDS
1] Secured Loans		556.203	352.733	168.391
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		556.203	352.733	168.391
DEFERRED TAX LIABILITIES		5.795	3.338	2.284
TOTAL		864.677	622.814	359.155
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		137.968	138.442	73.117
Capital work-in-progress		149.145	117.570	28.595
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	573.890	548.561	146.836
	Sundry Debtors	382.754	155.462	212.377
	Cash & Bank Balances	25.377	53.864	41.765
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	28.516	84.920	79.688
Total Current Assets		1010.537	842.807	480.666
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	283.273	404.779	146.706
	Other Current Liabilities	145.865	67.224	75.809
	Provisions	13.210	4.835	2.375
Total Current Liabilities		442.348	476.838	224.890
Net Current Assets		568.189	365.969	255.776
MISCELLANEOUS EXPENSES		9.375	0.833	1.667
TOTAL		864.677	622.814	359.155

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
SALES
	Net Sales	1415.388	1709.460	686.513
	Other Income	5.251	2.841	0.625
	Foreign Exchange gain/(Loss)	(11.625)	(9.422)	1.481
	TOTAL (A)	1409.014	1702.879	688.619
EXPENSES
	Brought Out Items	94.262	0.000	0.000
	Material Consumed	1166.887	1661.610	531.660
	Manufacturing Expenses	45.458	90.628	44.869
	Administrative, Selling and Distribution Expenses	65.108	101.836	38.901
	Deferred Revenue Expenses Written Off	5.521	0.833	0.833
	Prior Period Adjustment	0.786	0.980	(0.122)
	Increase / Decrease in Stock	(92.145)	(308.165)	(8.417)
	TOTAL (B)	1285.877	1547.722	607.724
PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		123.137	155.157	80.895
INTEREST AND FINANCIAL EXPENSES (D)		64.938	59.145	26.590
PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		58.199	96.012	54.305
DEPRECIATION/ AMORTISATION (F)		13.622	13.122	6.728
PROFIT BEFORE TAX (E-F) (G)		44.577	82.890	47.577
TAX (H)		10.557	4.376	4.658
PROFIT AFTER TAX (G-H) (I)		34.020	78.514	42.919
PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		180.073	101.559	103.669
BALANCE CARRIED TO THE B/S		214.093	180.073	146.588
EARNINGS IN FOREIGN CURRENCY		586.370	1580.420	598.250
IMPORTS
	Raw Materials	939.190	1642.070	434.230
	Capital Goods	24.340	136.030	58.520
TOTAL IMPORTS		963.530	1778.100	492.750
Earnings Per Share (Rs.)		3.84	15.53	16.07

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.41	4.61	6.23
Net Profit Margin (PBT/Sales)	(%)	3.15	4.85	6.93
Return on Total Assets (PBT/Total Assets}	(%)	3.88	8.45	8.59
Return on Investment (ROI) (PBT/Networth)		0.15	0.31	0.25
Debt Equity Ratio (Total Liability/Networth)		3.30	3.11	2.09
Current Ratio (Current Asset/Current Liability)		2.28	1.77	2.14

LOCAL AGENCY FURTHER INFORMATION

REVENUE, PERFORMANCE AND LONG TERM ESTIMATES

As of March 2009, the Company recorded revenues of $ 6.9 million (Rs.276.000 millions), In the financial year ended March 2010, the Company recorded revenues of around US$ 18 million (Rs.688.800 millions), thus achieving a year-on-year growth of over 150% and a CAGR (compound annual growth rate) in excess of 200% in the last 4 years. This is a against a revenue base of only US$ 0.81 million in the financial year ended March 2004.

After having achieved high growth over the last 5 years, the company now plans to Infuse growth capital to expand significantly across the solar value chain in solar module manufacturing and system integration front with a view strengthen its presence in the global solar energy sector. Based on current orders and future potential, Subject is expected to grow its top line in excess of US$ 500 million by end of calendar year 2014.

BUSINESS

The company designs, manufacturers and sells solar photovoltaic modules in both standard and customized configurations using cells and thin film plates. As of FY10, nearly 85% of subject’s total sales came from crystalline modules. The Company expects crystalline modules to continue to be its largest selling product family in coming years as well and has plants to invest significantly in this product line to meet the forecasted demand. In the domestic Indian market, Subject also does some business as a solar systems integrator for select major projects from public and private entities.

Subject’s products are certified to meet IEC 61215 and IEC 61730 safety standards by European certification agencies. The Company is also in the process of obtaining approvals from the Underwriter’s Laboratories of USA, which will help the Company to launch its products in the United States.

OUTLOOK

In view of the current scenario of the global solar market, the company needs to have security of long-term contracts on both supply and demand side, to sustain and become a long-term player. Subject has already secured multiple long-term cell contracts to support its module sales plan for FY11 and beyond. Similarly on the demand side, subject has recently concluded multi-year module sales contracts assuring sale of over 100 MWp in FY11 and FY12.

Advance stage discussions are on with a few more distributors and large scale project developers for significant volumes of modules to be supplied over the next 2-5 year time period. With secured contracts in place for immediate 1-2 year growth plan, Subject is now focusing on tying up sourcing contracts for cells for its module line and system integration activities. These contracts are expected to be secured by H2/FY11.

In summary, Company is

· Expanding its Crystalline Module Capacity to 100 MWp by December 2011;

· Enter into long term OEM and customer contracts with major distributors and system installers in Europe, USA and South East Asia;

· Caler to domestic market – for on grid applications in view of expected enormous growth potential in the year to come;

· Develop new business segments that have parity levels without any assistance from the Government subsidy/support schemes;

· Enter into long term supply contracts with the reputed manufacturers of Solar Cells using major types of solar technologies – Crystalline, aSi, CIGS

· Raise finances either through private placement of borrowings to make pre-payments towards the long term supply contracts.

· Restructure the organization to carry out day-to-day operations through professionals to achieve its set objectives of exponential growth.

· In recognition of Human resources, as the main strength of the Company, a substantial amount would be allocated for the Staff Welfare measures.

CONTINGENT LIABILITIES

Particulars	As on 31.03.2010 Rs. in millions
Bank Guarantees	77.200
Letter of Credit	112.150
Total	189.350

FORM 8

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 601/603, Ceejay House, Shivsagar Estate, Dr. Annie Besant Road, Worli, Mumbai – 400 018, 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

WEB DETAILS

PROFILE

Subject 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, Subject also undertakes design, construction, operation and maintenance of grid-connected and off-grid solar systems on ‘turnkey’ basis for end customers.

MANAGEMENT

Mr. 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 subject in 1990, he handled various technical, research and commercial responsibilities in Government organizations and Public Sector Units for over 20 years. At subject, as Managing Director, he guides the strategic growth plans of the business. He holds Bachelors Degree in Electronics and Communications from Andhra University.

Mr. Ravi K Chodagam - Chief Operating Officer

Mr. Ravi Chodagam has over 15 years of experience in manufacturing and Information technology industry in both operational and consulting roles. He has held key positions in supply chain, operations, technology, customer relationship, business development and P and L roles. He has worked globally with Fortune 500 companies in US, Singapore, Australia and India. He received his MBA from Indian School of Business with specialization in technology and operations. He has also obtained his Bachelors in Electrical Engineering.

Mr. 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.

Mr. Harsha Y Rao - VP-Technical

Mr. Harsha heads the Technical department at subject, 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

Mr. SNSR Sekar - Chief Financial Officer

Mr. Sekar is highly qualified with FCA, ACS and ACWA, having rich experience over a span of 35 years with:

· Worked with the Management Guru Dr C K Prahlad of Michigan State University

· Played a major role in the establishment of Apollo Group in India being the first CFO of the Apollo Hospitals

· Chennai in 1983

· CEO and CFO of Apollo Hospitals Hyderabad

· CFO of MNCs like Tecumseh India, VST etc.

· Global Group : Executive Director and Group CFO steer headed the strategic initiatives of constant expansion towards a Pan-India presence. Played a major role in networking Global all over from single location 150 beds to 2500 beds at 11 locations in about 3 years. Instrumental in innovative financial Structuring for the expansion all of which have been done at a lightning speed.

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.49.24
UK Pound	1	Rs.76.80
Euro	1	Rs.67.17

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.