MIRA INFORM REPORT

Report Date :

16.04.2012

IDENTIFICATION DETAILS

Name :	MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED
Registered Office :	Paradigm Plaza, A.B. Shetty Circle, Mangalore – 575 001, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.04.2002
Com. Reg. No.:	08-030425
Capital Investment / Paid-up Capital :	Rs.1573.399 millions
CIN No.: [Company Identification No.]	U40109KA2002SGC030425
TAN No.: [Tax Deduction & Collection Account No.]	BLRM07167G BLRM07491B BLRM06028B BLRM04121F BLRM07112A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Distribution of Electricity.
No. of Employees :	4051 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 19894000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a State Government Company of Karnataka having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. Subject being a government company, the lenders and creditors can feel confident of their exposure. The company can be confident 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

LOCATIONS

Registered Office :	Paradigm Plaza, A.B. Shetty Circle, Mangalore – 575 001, Karnataka, India
Tel. No.:	91-824-2444700
Fax No.:	91-824-2428873
E-Mail :	kpclcs@gmail.com

DIRECTORS

As on 22.10.2011

Name :

Poondla Ravi Kumar, IAS

Designation :

Chairman

Address :

Kaveri Bhavan, Bangalore, Karnataka, India

Date of Birth/Age :

03.05.1961

Date of Appointment :

25.05.2011

DIN No.:

02285126

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	U01135KA1973SGC002378	Karnataka State Seeds Corporation Limited	Director	21-06-08	21-06-08	24-11-08	Active	NO
2	U85110KA1937SGC000199	The Mysore Tobacco Company Limited	Director	14-07-08	14-07-08	31-12-08	Active	NO
3	U85110KA1997PLC021862	Nabard Financial Services Limited	Nominee director	21-08-08	21-08-08	21-06-11	Active	NO
4	U75112KA1974SGC002613	Karnataka Rural Infrastructure Development Limited	Director	17-12-08	17-12-08	13-06-11	Active	NO
5	U40109KA1999SGC025521	Karnataka Power Transmission Corporation Limited	Managing director	16-05-11	16-05-11	-	Active	NO
6	U04010KA2002SGC030438	Bangalore Electricity Supply Company Limited	Director	19-05-11	19-05-11	-	Active	NO
7	U85110KA1970SGC001919	Karnataka Power Corporation Limited	Director	19-05-11	19-05-11	-	Active	NO
8	U40101KA2007SGC043640	Power Company of Karnataka Limited	Director	25-05-11	25-05-11	-	Active	NO
9	U40109KA2002SGC030425	Mangalore Electricity Supply Company Limited	Director	25-05-11	25-05-11	-	Active	NO
10	U04010KA2002SGC030436	Gulbarga Electricity Supply Company Limited	Director	25-05-11	25-05-11	-	Active	NO
11	U75112KA1996PLC020020	Karnataka Renewable Energy Development Limited	Nominee director	25-06-11	25-06-11	-	Active	NO

Name :

Narasaiah Viyayanarasimha

Designation :

Managing Director

Address :

A.B. Shetty Circle, Mangalore – 575 001, Karnataka, India

Date of Birth/Age :

23.06.1953

Date of Appointment :

21.05.2011

DIN No.:

00234236

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	U40109KA2004SGC035177	Chamundeshwari Electricity Supply Corporation Limited	Director	17-06-11	23-02-05	21-10-11	Active	NO
2	U31101KA1975PLC002954	Karnataka Vidyuth Karkhane Limited	Director	30-07-11	08-11-06	-	Active	NO
3	L15428KA1933SGC000142	Mysore Sugar Company Limited	Nominee director	28-07-07	28-07-07	23-08-08	Active	YES
4	U40101KA2007SGC043640	Power Company of Karnataka Limited	Director	17-06-11	22-07-08	-	Active	NO
5	U04010KA2002SGC030436	Gulbarga Electricity Supply Company Limited	Director	24-09-08	24-09-08	15-09-09	Active	NO
6	U31401KA2002SGC030437	Hubli Electricity Supply Company Limited	Director	24-09-08	24-09-08	15-09-09	Active	NO
7	U40102DL2007GOI157615	Coastal Tamil Nadu Power Limited	Nominee director	19-08-09	19-08-09	30-08-10	Active	NO
8	U40109KA2002SGC030425	Mangalore Electricity Supply Company Limited	Managing director	21-05-11	21-05-11	-	Active	NO

Name :

Hanumappa Nagesh

Designation :

Director (Tech)

Address :

Paradigm Plaza, A.B. Shetty Circle, Mangalore – 575 001, Karnataka, India

Date of Birth/Age :

20.07.1958

Date of Appointment :

25.05.2011

DIN No.:

02309417

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	U04010KA2002SGC030438	Bangalore Electricity Supply Company Limited	Whole-time director	22-07-08	22-07-08	25-05-11	Active	NO
2	U85110KA1945PLC000367	The Mysore Electrical Industries Limited	Director	27-06-09	27-06-09	-	Active	NO
3	U40109KA2002SGC030425	Mangalore Electricity Supply Company Limited	Director	25-05-11	25-05-11	-	Active	NO

Name :

Dr. Aditi Raja

Designation :

Director

Address :

Kaveri Bhavan, Bangalore, Karnataka, India

Date of Birth/Age :

18.09.1959

Date of Appointment :

24.09.2008

DIN No.:

00164313

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	U40109KA1999SGC025521	Karnataka Power Transmission Corporation Limited	Director	22-08-03	22-08-03	-	Active	NO
2	U04010KA2002SGC030438	Bangalore Electricity Supply Company Limited	Director	30-08-04	30-08-04	28-02-08	Active	NO
3	U40109KA2004SGC035177	Chamundeshwari Electricity Supply Corporation Limited	Director	07-03-05	07-03-05	28-02-08	Active	NO
4	U31101KA1975PLC002954	Karnataka Vidyuth Karkhane Limited	Director	27-05-05	27-05-05	-	Active	NO
5	U85110KA1945PLC000367	The Mysore Electrical Industries Limited	Director	10-11-05	10-11-05	-	Active	NO
6	U40102MH2006GOI188622	Coastal Andhra Power Limited	Additional director	14-08-07	14-08-07	29-01-08	Active	NO
7	U40109KA2002SGC030425	Mangalore Electricity Supply Company Limited	Director	24-09-08	24-09-08	-	Active	NO
8	U75112KA1996PLC020020	Karnataka Renewable Energy Development Limited	Director	03-11-08	03-11-08	-	Active	NO

Name :

Dr. NS Chennappa Gowda, IAS

Designation :

Director

Address :

Mangalore District, Mangalore, Karnataka, India

Date of Birth/Age :

13.03.1956

Date of Appointment :

21.10.2011

DIN No.:

02132003

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	U51220KA1973SGC002400	Karnataka Food and Civil Supplies Corporation Limited	Managing director	19-03-08	19-03-08	31-01-09	Active	NO
2	U40109KA2002SGC030425	Mangalore Electricity Supply Company Limited	Director	21-10-11	21-10-11	-	Active	NO

Name :

Agrahara Narayanabhat Sridhara

Designation :

Director

Address :

Bangalore, Karnataka, India

Date of Birth/Age :

20.08.1952

Date of Appointment :

07.03.2009

DIN No.:

02463879

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	L15428KA1933SGC000142	Mysore Sugar Company Limited	Nominee director	05-11-08	05-11-08	Active	YES
2	U40109KA2002SGC030425	Mangalore Electricity Supply Company Limited	Director	07-03-09	07-03-09	Active	NO

Name :

Haladodderi Raghavendra Rao Nagendra

Designation :

Director

Address :

Bangalore, Karnataka, India

Date of Birth/Age :

30.08.1955

Date of Appointment :

02.05.2011

DIN No.:

03537500

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	U04010KA2002SGC030436	Gulbarga Electricity Supply Company Limited	Director	02-05-11	02-05-11	-	Active	NO
2	U40109KA2004SGC035177	Chamundeshwari Electricity Supply Corporation Limited	Director	02-05-11	02-05-11	29-12-11	Active	NO
3	U04010KA2002SGC030438	Bangalore Electricity Supply Company Limited	Director	02-05-11	02-05-11	29-12-11	Active	NO
4	U31401KA2002SGC030437	Hubli Electricity Supply Company Limited	Director	02-05-11	02-05-11	29-12-11	Active	NO
5	U40109KA2002SGC030425	Mangalore Electricity Supply Company Limited	Director	02-05-11	02-05-11	-	Active	NO
6	U75112KA1996PLC020020	Karnataka Renewable Energy Development Limited	Nominee director	02-05-11	02-05-11	-	Active	NO

Name :

Munivenkatappa Nagaraja

Designation :

Director

Address :

Ananda Rao Circle, Bangalore, Karnataka, India

Date of Birth/Age :

08.10.1956

Date of Appointment :

17.12.2008

DIN No.:

02893520

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	U04010KA2002SGC030436	Gulbarga Electricity Supply Company Limited	Director	17-12-08	17-12-08	Active	NO
2	U04010KA2002SGC030438	Bangalore Electricity Supply Company Limited	Director	17-12-08	17-12-08	Active	NO
3	U40109KA1999SGC025521	Karnataka Power Transmission Corporation Limited	Director	17-12-08	17-12-08	Active	NO
4	U40109KA2002SGC030425	Mangalore Electricity Supply Company Limited	Director	17-12-08	17-12-08	Active	NO
5	U40109KA2004SGC035177	Chamundeshwari Electricity Supply Corporation Limited	Director	08-10-09	08-10-09	Active	NO
6	U31401KA2002SGC030437	Hubli Electricity Supply Company Limited	Director	06-09-11	06-09-11	Active	NO

Name :

Venkata Siva Reddy

Designation :

Director

Address :

Bangalore, Karnataka, India

Date of Birth/Age :

02.10.1954

Date of Appointment :

21.10.2011

DIN No.:

05124568

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	U40109KA1999SGC025521	Karnataka Power Transmission Corporation Limited	Director	21-10-11	21-10-11	Active	NO
2	U40109KA2004SGC035177	Chamundeshwari Electricity Supply Corporation Limited	Director	21-10-11	21-10-11	Active	NO
3	U04010KA2002SGC030436	Gulbarga Electricity Supply Company Limited	Director	21-10-11	21-10-11	Active	NO
4	U40109KA2002SGC030425	Mangalore Electricity Supply Company Limited	Director	21-10-11	21-10-11	Active	NO
5	U31401KA2002SGC030437	Hubli Electricity Supply Company Limited	Director	21-10-11	21-10-11	Active	NO
6	U04010KA2002SGC030438	Bangalore Electricity Supply Company Limited	Director	21-10-11	21-10-11	Active	NO

Name :

Pachanady Rama Amin

Designation :

Director

Address :

Pachanadi, Mangalore, Karnataka, India

Date of Birth/Age :

12.12.1954

Date of Appointment :

15.12.2009

DIN No.:

02897834

Name :

Gowdara Kalapala Shadaksharappa

Designation :

Director

Address :

Shivashakti Nilaya, Sominakoppa Road, Shimoga

Date of Birth/Age :

10.12.1949

Date of Appointment :

15.12.2009

DIN No.:

02905889

Name :

Basavaraju

Designation :

Director

Address :

No 6610^th Cross Road, Kanakanagar RT Nagar PO, Bangalore – 560 032, Karnataka, India

Date of Birth/Age :

24.12.1953

Date of Appointment :

29.12.2011

DIN No.:

05234386

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 22.10.2011

Names of Shareholders	No. of Shares
Governor of Karnataka represented by Shamim Banu, IAS	157339922
P Ravi Kumar, IAS Nominee of Governor of Karnataka	1
Vijayanarasimha Nominee of Governor of Karnataka	1
Aditi Raja Nominee of Governor of Karnataka	1
LV Nagarajan, IAS Nominee of Governor of Karnataka	1
H Nagesh Nominee of Governor of Karnataka	1
HR Nagendra Nominee of Governor of Karnataka	1
NS Chennappa Nominee of Governor of Karnataka	1
MV Venkatesh, IAS Nominee of Governor of Karnataka	1
DL Nagaraju Nominee of Governor of Karnataka	1
Total	157339931

As on 17.02.2012

Names of Allottees	No. of Shares
Governor of Karnataka	14730000
Total	14730000

As on 22.10.2011

Equity Share Breakup	Percentage of Holding
Category
Government [Central and State]	100.00

BUSINESS DETAILS

Line of Business :

Distribution of Electricity.

GENERAL INFORMATION

Suppliers :

v KPCL

v NTPC RSTPS

v Madras Automic Power Station

v Neyveli Lignite Corporation Limited

v Sandur Power Company Limited

v Sahyadri Power Company Limited

v Kalson Power

v Graphite India Limited

v BPCL (NERIA)

v Moodabagil Power Private Limited

v Maruthi Power Gen (India) Kabini Private Limited

v Malavalli Power Plant

v Rayalseema Alkalies

v Tata Company Limited

v UPCL

v GMR

No. of Employees :

4051 (Approximately)

Bankers :

v Vijaya Bank, City Mangalore Branch, Catholic Centre Building, Hampankatta, Mangalore – 575 001, Karnataka, India

v State Bank of Mysore

v State Bank of India

v Canara Bank

v Syndicate Bank

v Corporation Bank

v Punjab Sind Bank

v UCO Bank

v Axis Bank

v Karnataka Bank

v Indian Bank

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Loans from Rural Electrification Corporation	0.458	12.157
Loan drawn by MCSCOM from REC- APDRP works	15.835	16.089
Loan drawn by MESCOM from REC -General	57.034	63.371
Loan from REC - RGGW Works	76.532	51.022
Loan from PFC-R-APDRP works	36.196	36.196
Loans from Commercial Banks	3538.767	3243.273
Total	3724.822	3422.108

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Loans from Banks - UCO Bank	0.000	0.000
APDRP-REC Loan payable to KPTCL	31.443	47.281
PMGY Loan Account	10.974	11.170
GOK loan for energization of IP sets under GK scheme	6.000	7.200
Loan from Power Finance Corporation Limited	0.000	0.000
Central Government Loan towards Power Sector Automation	10.290	11.760
Loan from GOK - Interest free	6.234	6.235
Loan from GOK under Special Component Sub-plan (SCSP)	12.950	0.000
Loan from GOK under Tribal Sub-plan (TSP)	7.461	0.000
Total	85.352	83.646

Banking Relations :	--
Auditors :
Name :	Ganesh and Sudhir Chartered Accountants
Address :	1^st Floor, Albuqerque chambers, Pandeshwar, Mangalore – 575 001, Karnataka, India
Income-tax PAN of auditor or auditor's firm :	AACFG4048A

CAPITAL STRUCTURE

After 22.10.2011

Authorised Capital : Rs.3000.000 millions

Issued, Subscribed & Paid-up Capital : Rs.1720.699 millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
300000000	Equity Shares	Rs.10/- each	Rs.3000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
57050000	Equity Shares	Rs.10/- each	Rs.570.500 millions
100289931	Equity Shares (Share capital investment by GOK for consideration other than cash)	Rs.10/- each	Rs.1002.899 millions
	Total		Rs.1573.399 millions

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		1573.399	1103.399	1003.399
2] Share Deposit		0.000	220.000	0.000
3] Reserves & Surplus		3400.083	3007.882	2500.061
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		4973.482	4331.281	3503.460
LOAN FUNDS
1] Secured Loans		3724.822	3422.108	2718.595
2] Unsecured Loans		85.352	83.646	393.535
TOTAL BORROWING		3810.174	3505.754	3112.130
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
Other Funds (Service Line and Security Deposits)		3068.010	2819.400	2603.396
TOTAL		11851.666	10656.435	9218.986
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8433.522	7194.646	6007.994
Capital work-in-progress		932.077	919.323	649.520
INVESTMENT		25.100	25.100	0.100
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories, Stores and Spares	222.610	207.953	246.526
	Sundry Debtors	3755.556	3486.138	2834.835
	Cash & Bank Balances	279.958	429.758	625.715
	Other Current Assets	8788.415	6136.064	5318.605
	Loans, Advances and Deposits	320.932	349.640	83.118
Total Current Assets		13367.471	10609.553	9108.799
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors & Other Current Liabilities	10906.504	8092.187	6547.427
	Provisions
Total Current Liabilities		10906.504	8092.187	6547.427
Net Current Assets		2460.967	2517.366	2561.372
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		11851.666	10656.435	9218.986

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Revenue from Sale of Power	13385.920	11752.488	10478.373
		Income on Account of Regulatory Assets	759.300	0.000	0.000
		Revenue Subsidies and Grants	0.000	0.000	0.000
		Other Income	264.373	254.120	247.518
		TOTAL (A)	14409.593	12006.608	10725.891
Less	EXPENSES
		Purchase of Power	11035.970	8773.533	8844.536
		Employee Costs	136.671	124.217	115.743
		Administration and Other Expenses	1730.502	1283.855	1197.157
		Other Debits	295.754	302.573	248.831
		Preliminary Expenses written off	22.668	40.939	27.069
					10433.336
		Prior Period Charges or (Credits)	(284.416)	131.711	(46.863)
		TOTAL (B)	12937.149	10656.828	10386.473
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1472.444	1349.780	339.418
Less	INTEREST & OTHER CHARGES (NET) (D)		937.918	787.106	486.961
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		534.526	562.674	(147.543)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		511.324	453.939	262.691
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		23.202	108.735	(410.234)
Less	TAX (H)		6.191	20.925	3.021
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		17.011	87.810	(413.255)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		507.327	419.517	832.772
	BALANCE CARRIED TO THE B/S		524.338	507.327	419.517
	Earnings/ (Loss) Per Share (Rs.)		0.12	0.84	(4.12)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.12	0.73	(3.85)
Net Profit Margin (PBT/Sales)	(%)	0.17	0.93	(3.92)
Return on Total Assets (PBT/Total Assets}	(%)	0.11	0.61	(2.71)
Return on Investment (ROI) (PBT/Networth)		0.00	0.03	(0.12)
Debt Equity Ratio (Total Liability/Networth)		2.96	2.68	2.76
Current Ratio (Current Asset/Current Liability)		1.23	1.31	1.39

LOCAL AGENCY FURTHER INFORMATION

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

FINANCIAL RESULTS:

During the year in spite of various challenges and risks, by implementing the innovative technological concepts and putting continuous all round efforts, the Company has achieved remarkable results especially with regard to reduction in distribution losses and minimization of failure of transformers, which stands at 11.92% and 9.16% respectively.

With an annual turnover of about Rs.14409.600 millions and a committed pool of 4051 employees, the Company is serving 17.52 lakh Nos. of consumers located in different parts of coastal and malnad areas in the four revenue districts of Karnataka State, viz. Dakshina Kannada, Udupi. Shimoga and Chikkamagalur.

Bankers Charges Report as per Registry

Corporate identity number of the company	U40109KA2002SGC030425
Name of the company	MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED
Address of the registered office or of the principal place of business in India of the company	Paradigm Plaza, A.B. Shetty Circle, Mangalore – 575 001, Karnataka, India E-Mail: kpclcs@gmail.com
This form is for	Modification of charge
Charge identification number of the modified	10279653
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	Vijaya Bank, City Mangalore Branch, Catholic Centre Building, Hampankatta, Mangalore – 575 001, Karnataka, India E-Mail: ullas53@gmail.com
Nature of description of the instrument creating or modifying the charge	1. Hypothecation Agreement dated 21.01.2012 2. Supplemental Agreement dated 21.01.2012 3. Agreement to extend charge on movable property dated 21.01.2012 All in favour of Vijaya Bank, City Mangalore Branch to secure the enhanced credit limit granted by the Banker. (All the documents relate to the same charge)
Date of instrument Creating the charge	21.01.2012
Amount secured by the charge	Rs.380.900 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: All inclusive commission plus commitment and handling charges of 0.25% p.a. Terms of Repayment: Facility for a period of 12 months Margin: As applicable Extent and Operation of the charge: Charge extends by way of first charge on assets to secure the enhanced Irrevocable/Revolving/Non-operative Inland LC facility of Rs.380.900 millions granted along with all interest, commission, cost, charges or expenses payable by the Borrower as mentioned in the charge documents
Short particulars of the property charged	Extension of First Charge on pari passu basis by way of hypothecation of current assets with other working capital lenders besides receivables arising out of sale of power procured under Letter of Credit from power generation Companies. Infrastructure equipments like transformers, conductors, poles and other electric equipments installed in rural areas for supply of electricity in MESCOM jurisdiction valued at Rs.8186.554 millions.
Date of latest modification prior to the present modification	24.03.2011
Particulars of the present modification	The Irrevocable/Revolving/Inland Letter of Credit facility enhanced from Rs.130.900 millions to Rs.380.900 millions and extension of charge on movable and other current assets of the Company. The facility granted for a period of 12 months.

FIXED ASSETS:

v Land and Rights

v Buildings

v Hydraulic Works

v Other Civil Works

v Plant and Machinery

v Lines Cable Networks

v Vehicles

v Furniture and Fixtures

v Office Equipments

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.51.42
UK Pound	1	Rs.81.93
Euro	1	Rs.67.67

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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.