MIRA INFORM REPORT

Report Date :

04.04.2012

IDENTIFICATION DETAILS

Name :	CONVERTEAM INDIA PRIVATE LIMITED
Registered Office :	Lords Ramaniyam, 6^th Floor Block – 2, Plot No.1 & 2 (NP) Northern Extension Area, Thiruvika Industrial Estate, Ekkaduthangal, Guindy, Chennai – 600 032, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	25.06.2007
Com. Reg. No.:	06-081587
Capital Investment / Paid-up Capital :	Rs.0.100 Million
CIN No.: [Company Identification No.]	U34300TN2007PTC081587
Legal Form :	Private Limited Liability Company
Line of Business :	Trading of Electrical Goods.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (15)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company is under 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	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 :	Lords Ramaniyam, 6^th Floor Block – 2, Plot No.1 & 2 (NP) Northern Extension Area, Thiruvika Industrial Estate, Ekkaduthangal, Guindy, Chennai – 600 032, Tamilnadu, India
Tel. No.:	91-44-66115800
Fax No.:	91-44-66115816
E-Mail :	viswanath.prasanna@converteam.com r.balaji@converteam.com rohini.subramanian@converteam.com g.sathyanarayana@converteam.com dipankar.dey@converteam.com
Website :	http://www.converteam.com

DIRECTORS

(AS ON 28.09.2011)

Name :

Mr. Sathyanarayanan Krishnamurthi Garimalla

Designation :

Director

Address :

New No.6, Banguru Street, Chennai – 600023, Tamilnadu, India

Date of Birth/Age :

20.10.1954

Date of Appointment :

25.06.2007

DIN No.:

00326790

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	U72100TN2005PTC056618	Converteam EDC Private Limited	Managing director	1/1/2007	15/06/2005	Active	NO
2	U34300TN2007PTC081587	Converteam India Private Limited	Director	11/2/2011	25/06/2007	Active	NO

Name :

Mr. Aymeric Dharambure Delapoeze

Designation :

Managing Director

Address :

27 Bd Ranpall 75007 Paris France

Date of Birth/Age :

26.08.1971

Date of Appointment :

11.02.2011

DIN No.:

03516421

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	U34300TN2007PTC081587	Converteam India Private Limited	Managing director	16/02/2011	11/2/2011	Active	NO

Name :

Mr. Steven James Raynor

Designation :

Additional Director

Address :

Maxoms Lodge, Rapton Road, Hartshoms, Burton on Tranit, United Kingdom DE117AD

Date of Birth/Age :

06.11.1960

Date of Appointment :

19.11.2010

DIN No.:

03130341

Name :

Mr. Mark Alan Stoddart

Designation :

Additional Director

Address :

43 Wallngfond Road, Chosiey, Oxfordshire United Kingdom

Date of Birth/Age :

24.11.1962

Date of Appointment :

19.11.2010

DIN No.:

03131818

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 28.09.2011)

Names of Shareholders	No. of Shares
Converteam International SAS, France	9900
Converteam SAS, France	100
Total	10000

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
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 :

Trading of Electrical Goods.

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	Not Available

Banking Relations :	--
Auditors :
Name :	S. R. Batliboi and Associates Chartered Accountant
Address :	TPL House, 2^nd Floor, No.3 Cenotaph Road, Teynamet, Chennai – 600018, Tamilnadu, India
PAN No.:	AABFS3421N
Holding Company :	· Converteam International SAS, Massy, France
Ultimate Holding Company :	· Converteam Group SAS, France
Entities under Common Control :	· Converteam EDC Private Limited · Converteam Limited, UK · Converteam GMBH · Converteam Financiere, SAS · Converteam SAS, Massy, France · Converteam Technology Limited · Converteam Brazil Limited · Converteam Group SAS · Converteam Inc · Converteam Services SAS

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Share	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000	Equity Share	Rs.10/- each	Rs.0.100 Million

Of the Above:

9,900 Equity Shares of Rs.10/- each are held by Converteam International SAS, Massy, France and 100 equity shares of Rs.10/- each are held by Converteam SAS, Massy, France.

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		0.100	0.100	0.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	8.136
4] (Accumulated Losses)		(128.524)	(27.712)	0.000
NETWORTH		(128.424)	(27.612)	8.236
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.028	1.141	14.057
TOTAL BORROWING		0.028	1.141	14.057
DEFERRED TAX LIABILITIES		0.000	0.000	0.012
TOTAL		(128.396)	(26.471)	22.305
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		13.551	2.280	3.084
Capital work-in-progress		13.613	0.037	0.138
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.372	3.612	1.503
	Sundry Debtors	156.712	58.391	109.692
	Cash & Bank Balances	42.343	9.468	27.468
	Other Current Assets	32.840	1.205	0.475
	Loans & Advances	54.585	11.493	8.111
Total Current Assets		286.852	84.169	147.249
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	214.221	81.769	93.204
	Other Current Liabilities	213.117	31.044	30.518
	Provisions	15.074	0.144	4.444
Total Current Liabilities		442.412	112.957	128.166
Net Current Assets		(155.560)	(28.788)	19.083
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		(128.396)	(26.471)	22.305

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	303.574	127.584	213.946
		Other Income		3.816
		TOTAL	303.574	131.400	213.946
Less	EXPENSES
		TOTAL	404.385	170.063	195.140
	PROFIT BEFORE TAX		(100.811)	(38.663)	18.806
Less	TAX		0.000	(2.814)
	PROFIT AFTER TAX		(100.811)	(35.849)	12.373
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	8.137	(4.236)
	BALANCE CARRIED TO THE B/S		NA	(27.712)	8.137
	EARNINGS IN FOREIGN CURRENCY		0.000	73.906	37.373
	IMPORTS
		Goods Purchased for Projects	108.391	3.807	1.633
	TOTAL IMPORTS		108.391	3.807	1.633
	Earnings Per Share (Rs.)		(10081.10)	(3584.88)	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(33.21)	(27.28)	5.78
Net Profit Margin (PBT/Sales)	(%)	NA	(30.30)	NA
Return on Total Assets (PBT/Total Assets}	(%)	(33.56)	(44.72)	12.51
Return on Investment (ROI) (PBT/Networth)		0.78	1.40	2.28
Debt Equity Ratio (Total Liability/Networth)		(3.45)	(4.13)	17.27
Current Ratio (Current Asset/Current Liability)		0.65	0.75	1.15

LOCAL AGENCY FURTHER INFORMATION

NOTE:

The Registered Office of the company has been shifted from 6^th Floor, Block – 2, “Virtusa”, Plot Northern Ext, Thiruviaka Industrial Estates, Guindy, Chennai – 600032, Tamilnadu, India, to the present address w.e.f. 06.07.2011.

PERFORMANCE

During the 15 months period ended 31, March 2011, the Company achieved a turnover of Rs.303.574 Millions and (Loss) before tax Rs (100.811) Millions as against Rs.131.401 Millions and Rs (38.663) Millions during previous year.

BUSINESS OUTLOOK

a) Order Position

The company secured major orders to the extent of Rs.1635.986 Millions. and pending orders under execution is to the tune of Rs.1658.030 Millions.

b) New Plant at Perugundi

During this period, the company commenced activities to set up a manufacturing facility (Renewable Energy Converter factory of India - RECOFI) at Perungudi, Chennai for manufacture and supply of converters to various wind turbine manufacturers and this plant has started commercial production from 29^th July 2011.

NATURE OF OPERATIONS

The company was incorporated on June 25, 2007 in Chennai and is a subsidiary of Converteam International SAS, France. The Company is engaged in the business of engineering, designing and developing of electrical equipments, variable speed drives, control and automation systems. The Company is also engaged in trading of electrical goods.

FIXED ASSETS:

· Office Equipment

· Furniture and Fittings

· Computer Equipment

· 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.50.56
UK Pound	1	Rs.81.05
Euro	1	Rs.67.49

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	--
--LEVERAGE	1~10	2
--RESERVES	1~10	--
--CREDIT LINES	1~10	2
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		15

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.