MIRA INFORM REPORT

Report Date :

29.09.2011

IDENTIFICATION DETAILS

Name :	LM WIND POWER BLADES (INDIA) PRIVATE LIMITED (w.e.f. 12.05.2010)
Formerly Known As :	LM GLASFIBER (INDIA) PRIVATE LIMITED
Registered Office :	Plot No. 85, Kiadb Industrial Area, Dabaspet, Nelamangala Taluka, Bangalore 562111, Karnataka
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	30.12.1999
Com. Reg. No.:	026157
Capital Investment / Paid-up Capital :	Rs.126.000 millions
CIN No.: [Company Identification No.]	U31101KA1999PTC026157
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Wind Turbine Rotor Blades
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 3281440
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a part of LM Glasfiber Denmark. It 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.

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 :	Plot No. 85, Kiadb Industrial Area, Dabaspet, Nelamangala Taluka, Bangalore 562111, Karnataka, India
Tel. No.:	91-80-67764800
E-Mail :	val@imglasfiber.com

DIRECTORS

AS ON 29.09.2010

Name :	Mr. Vishal Almal
Designation :	Director
Date of Birth/Age :	16.07.1974
Date of Appointment :	12.11.2009
DIN No.:	02834959

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	U31101KA1999PTC026157	LM Wind Power Blades (India) Private Limited	Additional director	12/11/2009	12/11/2009	-	Active	NO

Name :	Mr. Neeraj Bisaria
Designation :	Director
Date of Birth/Age :	01.07.1971
Date of Appointment :	12.11.2009
DIN No.:	02833292

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	U31101KA1999PTC026157	LM Wind Power Blades (India) Private Limited	Additional director	12/11/2009	12/11/2009	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2010

Names of Shareholders	No. of Shares
LM Wind Power AS, Denmark	12599980
LM China Holding AS, China	10
LM Wind Power Holland BV, Netherlands	2
LM Wind Power Blades Ponferrada S A , Spain	3
LM Wind Power Bladesnd INC, North Dakota, USA	5
Total	12600000

AS ON 29.09.2010

Equity Share Breakup		Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]		100.00
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Wind Turbine Rotor Blades

PRODUCTION STATUS

AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Rotor Blades	Nos.		1842	1018

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Not Available

Facilities :

Rs. In Millions

UNSECURED LOAN	31.03.2010	31.03.2009
Short Term Trade Credit form a Bank	0.000	341.505
Total		341.505

Banking Relations :	--
Auditors :
Name :	S Dutta Chartered Accountant
Address :	5 Floor, Tower D, The Millenia, 1 and 2 Murphy Road, Ulsoor, Bangalore 560008, Karnataka, India
Ultimate Holding Company :	LM Glasfiber Holding AS , Denmark
Holding Company :	LM Wind Power AS, Denmark
Fellow Subsidiaries :	· LM Glasfiber Espanola, SA · LM Glasfiber (Tianjin) Company Limited China · LM Glasfiber Deutschland Gmbh · LM Glasfiber (ND), INC · LM Glasfiber Poland Sp. Zoo · LM Glasfiber Service BV · LM Glasfiber Canada Inc. · LM Wind Power BL (Little Rock) · LM Glasfiber R and D (India) Private Limited · LM Glasfiber (GF), Inc

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
12600000	Equity Shares	Rs. 10 each	Rs.126.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12600000	Equity Shares (of the above shares 12599980 shares are held by LM Glasfiber AS, Danmark)	Rs. 10 each	Rs.126.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010 (15 Months)	31.12.2008	31.12.2007
SHAREHOLDERS FUNDS
1] Share Capital		126.000	126.000	126.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		694.360	622.758	933.122
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		820.360	748.758	1059.122
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	341.505	322.346
TOTAL BORROWING		0.000	341.505	322.346
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		820.360	1090.263	1381.468
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1235.999	1184.122	1246.894
Capital work-in-progress		8.182	183.087	77.593
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		417.527	356.106	162.757
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	548.042	633.150	598.279
	Sundry Debtors	755.102	1283.276	1222.222
	Cash & Bank Balances	407.873	426.095	24.141
	Other Current Assets	10.177	12.878	11.332
	Loans & Advances	85.380	196.023	55.661
Total Current Assets		1806.574	2551.422	1911.635
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1386.178	1925.008	1223.146
	Other Current Liabilities	267.516	319.494	369.436
	Provisions	994.228	939.972	424.829
Total Current Liabilities		2647.922	3184.474	2017.411
Net Current Assets		(841.348)	(633.052)	(105.776)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		820.360	1090.263	1381.468

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010 (15 Months)	31.12.2008	31.12.2007
	SALES
		Sales	2623.000	4667.000	3099.600
		Other Income	181.600	66.600	43.200
		TOTAL (A)	2804.600	4733.600	3142.800
Less	EXPENSES
		Cost of Materials	1429.800	2666.600	1650.900
		Administrative Expenses	1005.000	1681.800	1134.700
		TOTAL (B)	2434.800	4348.400	2785.600
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		369.800	385.200	357.200
Less	FINANCIAL EXPENSES (D)		4.900	19.200	4.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		364.900	366.000	353.200
Less/ Add	DEPRECIATION/ AMORTISATION (F)		391.400	329.000	225.800
Less/ Add	Prior Period Item – Net of Compensation Income and Restructuring Expense		176.000	(494.200)	8.900
	PROFIT BEFORE TAX (E-F) (G)		149.500	(457.200)	136.300
Less	TAX (H)		77.900	(146.800)	49.800
	PROFIT AFTER TAX (G-H) (I)		71.600	(310.400)	86.500
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	842.346	1290.275	725.726
	IMPORTS
		Raw Materials	911.620	1946.522	1521.989
		Stores & Spares	61.258	54.646	32.799
		Capital Goods	140.850	242.369	337.912
	TOTAL IMPORTS		1113.728	2243.537	1892.700
	Earnings Per Share (Rs.)		5.68	(24.63)	--

KEY RATIOS

PARTICULARS		31.03.2010 (15 Months)	31.12.2008	31.12.2007
PAT / Total Income	(%)	2.55	(6.55)	2.75
Net Profit Margin (PBT/Sales)	(%)	5.69	(9.79)	4.39
Return on Total Assets (PBT/Total Assets}	(%)	4.91	(12.23)	4.32
Return on Investment (ROI) (PBT/Networth)		0.18	(0.61)	0.12
Debt Equity Ratio (Total Liability/Networth)		3.22	4.70	2.20
Current Ratio (Current Asset/Current Liability)		0.68	0.80	0.94

LOCAL AGENCY FURTHER INFORMATION

BUSINESS SCENARIO

The wind industry in India and world over is expected to grow at fast pace due to growing demand for energy and dwindling reserves of fossil fuel. The investments in wind turbine installations in India continue to be driven by tax incentives. This scenario is expected to change with professional investments by potential developers to bridge the gap in the growing demand for energy with clean and renewable energy sources such as wind and solar power. The company has geared up to meet this challenge with the stabilisation of its state of the art plant at Dobespet capable of for producing blades of > 40 meters in length.

RESERVES AND SURPLUS

The company has carried forward an amount of Rs.559.1 million as Reserves and Surplus for the period ended 31^st March 2010 as compared to Rs.487.5 million in the previous year.

FIXED ASSETS:

· Freehold Land

· Building

· Plant and Machinery

· Data Processing Equipments

· Office Equipments

· Furniture and Fixtures

· Motor Vehicle

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.48.91
UK Pound	1	Rs.76.53
Euro	1	Rs.66.43

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	6
--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		47

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.