MIRA INFORM REPORT

Report Date :

24.08.2012

IDENTIFICATION DETAILS

Name :	POWER GEARS LIMITED (w.e.f. 28.03.1995)
Formerly Known As :	POWER GEARS PRIVATE LIMITED
Registered Office :	Plot No.15, and 16, 3^rd Phase, Peenya Industrial Area, Bangalore- 560058, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	26.03.1980
Com. Reg. No.:	08-003787
Capital Investment / Paid-up Capital :	Rs.23.713 Millions
CIN No.: [Company Identification No.]	U32109KA1980PLC003787
TAN No.: [Tax Deduction & Collection Account No.]	BLRP04547E
PAN No.: [Permanent Account No.]	AABCP2082L
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufactures for IPBs and Generator Terminal Enclosures.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 1280000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. But there appears dip in the profitability and turnover. However, the profit margin seems to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered for normal business dealing 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	Plot No.15, and 16, 3^rd Phase, Peenya Industrial Area, Bangalore - 560058, Karnataka, India
Tel. No.:	91-80-28396076/ 28394268/ 28396483/ 40438333
Fax No.:	91-80-28371488
E-Mail :	fna@powergearlimited.com mepz@powergearlimited.com cbu@powergearlimited.com
Website :	www.powergearlimited.com
Area :	25,000 sq ft. shop area
Factory 1:	Located at Chennai
Area :	50000Sq.ft.
Factory 2:	Located at Hindpur
Area :	37000Sq.ft.
Factory 3:	Located at VCB
Area :	6000Sq.ft.

DIRECTORS

As on: 30.09.2011

Name :

Mr. Durairaj Xavier

Designation :

Chairman and Whole Time Director

Address :

S Block, Old No.40, New No.9, 21^st Street, Annanagar, Chennai-600040, Tamilnadu, India

Date of Birth/Age :

19.04.1948

Date of Appointment :

11.09.2000

PAN No :

AAGPD0236R

DIN No.:

00514197

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U32201TN1997PTC037428	REEP INDUSTRIES PRIVATE LIMITED	Director	31/01/1997	31/01/1997	-	Active	NO
2	U32109KA1980PLC003787	POWER GEARS LIMITED	Director	11/09/2000	11/09/2000	-	Active	NO
3	U63010TN2007PTC065019	HERCULES LOGISTICS PRIVATE LIMITED	Director	10/10/2007	10/10/2007	-	Active	NO
4	U74900TN2010PTC076309	R.L POWER OIL AND GAS INDIA PRIVATE LIMITED	Director	25/06/2010	25/06/2010	-	Active	NO
5	U74990TN2011PTC080844	GESTAMP POWERGEAR WINDSTEEL PRIVATE LIMITED	Director	30/05/2011	30/05/2011	-	Active	NO
6	U29299PN2010PTC135984	SHRENIK INDUSTRIES PRIVATE LIMITED	Additional director	30/05/2012	30/05/2012	-	Active	NO

Name :

Mr. Subbarao Govindrao Subbarao

Designation :

Managing Director

Address :

58, 16^th Cross, 12^th Main, Malleshwaram, Bangalore - 560055, Karnataka, India

Date of Birth/Age :

16.11.1944

Date of Appointment :

26.03.1980

PAN No :

AESPS6647D

DIN No.:

00635626

Name :

Mr. Darbe Krishnananda Chowta

Designation :

Director

Address :

242C, 3^rd Block, IV Phase, Basaveshwaran Nagar, West of Chord Road, Bangalore - 560079, Karnataka, India

Date of Birth/Age :

18.06.1939

Date of Appointment :

16.08.1993

DIN No.:

00629521

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U28920KA1990PTC010772	P C EXPORTS PRIVATE LIMITED	Managing director	31/03/1990	31/03/1990	-	Active	YES
2	U55100MH1992PLC069865	PRAKRUTI RESORTS LIMITED	Director	03/12/1992	03/12/1992	12/06/2008	Active	NO
3	U32109KA1980PLC003787	POWER GEARS LIMITED	Director	16/08/1993	16/08/1993	-	Active	NO
4	U25190KA1978PTC003315	WELFLEX POLYMER PRIVATE LIMITED	Director	20/08/2007	20/08/2007	16/08/2008	Active	NO

Name :

Mr. Puppala Panduranga Jagan Mohan Rao

Designation :

Director

Address :

114, 5^th C Main, R. P. C. Layout, Vijayanagar, Bangalore - 560040, Karnataka, India

Date of Birth/Age :

18.02.1946

Date of Appointment :

16.09.1988

PAN No.:

AAOPR8304E

DIN No.:

00635708

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U32109KA1980PLC003787	POWER GEARS LIMITED	Director	16/09/1988	16/09/1988	-	Active	NO
2	U72200KA2007PTC043851	TETHERMEDIA SOFTWARE PRIVATE LIMITED	Director	13/09/2007	13/09/2007	-	Active	NO

Name :

Mr. Bannapalli Laxminarayan Hegde

Designation :

Director

Address :

# 402, Ashoka Hights, Mahalakshmipuram, Bangalore - 560086, Karnataka, India

Date of Birth/Age :

10.06.1937

Date of Appointment :

29.08.1998

PAN No :

AACPL7888B

DIN No.:

00680194

Name :

Mr. Rajesh Xavier Durairaj

Designation :

Director

Address :

S Block, Old No.40, New No.9, 21^st Street, Annanagar, Chennai - 600040, Tamilnadu, India

Date of Birth/Age :

03.06.1981

Date of Appointment :

28.09.2007

PAN No :

AGOPD3381R

DIN No.:

01774431

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U32109KA1980PLC003787	POWER GEARS LIMITED	Whole-time director	30/09/2011	28/09/2007	-	Active	NO
2	U63010TN2007PTC065019	HERCULES LOGISTICS PRIVATE LIMITED	Director	10/10/2007	10/10/2007	-	Active	NO
3	U74990TN2011PTC080844	GESTAMP POWERGEAR WINDSTEEL PRIVATE LIMITED	Additional director	04/07/2011	04/07/2011	-	Active	NO
4	U29299PN2010PTC135984	SHRENIK INDUSTRIES PRIVATE LIMITED	Additional director	30/05/2012	30/05/2012	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2011

SHAREHOLDER DETAILS FILE ATTACHED.

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2011

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	13.00
Bodies corporate	9.00
Directors or relatives of directors	77.00
Other top fifty shareholders	1.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufactures for IPBs and Generator Terminal Enclosures.

PRODUCTION STATUS (As on: 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity
Busducts	Nos.	610.00	610.00
Control, Relay and VCB Panels	Nos.	110.00	110.00
Switch Board	Nos.	100.00	100.00
Transformers	Nos.	1 080.00	1 080.00
HT Switches	Nos.	12.00	12.00

Particulars	Unit	Actual Production
Busducts	Nos.	2427.66 Mtrs + 80 Sets + 1832 Nos + 78 Cases
Control, Relay and VCB Panels	Nos.	50 Nos + 10 Units
CTS	Nos.	81
Spares for Control Panels	Nos.	6528 Nos + 215 Mtrs + 46 Litres + 10865.6 mtrs
Aluminium	Kgs.	10727.97
Copper	Kgs.	820.07

GENERAL INFORMATION

Suppliers :

· ABI Engineering

· ABI Transport

· Aerosol Filters Private Limited

· Agility Logistics Private Limited

· Agricultural and Industrial Supplies

· Akash Aluminium Company

· Akbar Tools Company

· Akshada Aircon

· Alfa Engineering

· Allegra Fibers

· Alltronix

· Amba Industries

· Ambadi Enterprises

· Amson and Company

· Anax Logistics

· Aqua Specialities (Private) Limited

· Aramex India Private Limited

· Aravintho Security Services

· Arihant Aluminium Agencies

· AS Engineers

· ASA Bhanu Technical Services Limited

· Asian Rubber Industries

· Asian Traders

· Axon Technologies

· B.B. Electrotechnic

· B. Prabhakaran

Customers :

· AL Hassan Engineering Company

· Areva T and D Limited

· Argo Turboserve Corporation

· BHEL , Rudrapur

· Coretech Industrial Corp(DR)

· Emirates Aluminium Company Limited

· Essar Construction Limited

· G.E. France

· GE Hungary ZRT.

· General Electric Canada Hydro

· GESCOM

· Ibedrola Generation SA - Spain

· Iberdrola Ingenieriay Consultoria - Mexico

· Industrial Energy Limited

· KPCL Raichur

· KPTCL

· KPTCL Bellary

· Larsen and Tourbro Limited

· MESCOM

· Mitsubishi Electric Corporation

No. of Employees :

Not Available

Bankers :

• State Bank of India, Specialised Mid Corporate Branch, No. 97, Railway Parallel Road, Kumarapark West, Bangalore - 560020, Karnataka, India
• State Bank of India, Mid Corporate Loan Administration Unit, Residency Plaza, 3^rd Floor, No.61, Residency Road, Banglore-560025, Karnataka, India
• State Bank of India, Peenya Branch / Hindupur Branch / Naugan Branch
• State Bank of India, Cash Credit Account, Hindupur
• Indian Bank
• Union Bank of India
• State Bank of India – Gundy
• State Bank of India – Tambaram
• State Bank of India – EEFC Account

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
A. From State Bank of India, Peenya Branch
Cash Credit	26.391	24.706
Packing Credit	72.226	11.729
Term Loan (SEZ)	16.500	24.272
Total	115.117	60.707

Banking Relations :	--
Auditors :
Name :	BP Rao and Company Chartered Accountants
Address :	No.5, Poornaprasad Raod, High Grounds, Banglore-560001, Karnataka, India
Tel. No.:	91-80-22200200
Fax No.:	91-80-22205030
E-Mail :	bprao@satyam.net.in
PAN No.:	AAAFB0643G
Enterprises over which Key Management Personnel is able to exercise significant influence :	Reep Industries Private Limited

CAPITAL STRUCTURE

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs. 10/- each	Rs. 50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2371324	Equity Shares	Rs. 10/- each	Rs. 23.713 millions

Note:

20000 Share issued to the shareholders of erstwhile P. S. P. L. in pursuance of amalgamation, for consideration, for consideration other than cash.

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		23.713	23.713	23.713
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		297.726	243.963	171.581
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		321.439	267.676	195.294
LOAN FUNDS
1] Secured Loans		115.117	60.707	141.952
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		115.117	60.707	141.952
DEFERRED TAX LIABILITIES		5.176	0.877	4.596
TOTAL		441.732	329.260	341.842
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		118.307	118.947	114.548
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.006	0.006	0.006
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	102.720	112.913	132.850
	Sundry Debtors	215.457	140.727	186.788
	Cash & Bank Balances	93.910	46.100	46.268
	Other Current Assets	65.609	57.751	54.737
	Loans & Advances	18.656	31.091	31.216
Total Current Assets		496.352	388.582	451.859
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	85.745	91.451	124.937
	Other Current Liabilities	50.827	52.571	54.384
	Provisions	36.665	34.709	45.858
Total Current Liabilities		173.237	178.731	225.179
Net Current Assets		323.115	209.851	226.680
MISCELLANEOUS EXPENSES		0.304	0.456	0.608
TOTAL		441.732	329.260	341.842

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	714.229	864.981	945.453
		Other Income	31.274	5.130	23.435
		Erection and Supervision Charges	25.874	10.147	7.450
		Freight Charge Received	1.050	4.801	1.022
		Labour Charges Received	0.000	0.000	2.484
		TOTAL (A)	772.427	885.059	979.844
Less	EXPENSES
		Manufacturing Expenses	468.977	531.628	712.227
		Employees Remuneration	130.003	101.750	82.420
		Increase/(Decrease) in Finished Goods	4.041	12.466	(14.532)
		Selling and Distribution Expenses	67.387	98.687	66.812
		Bad Debts	0.005	21.597	11.487
		Pre-Operative Expenses Written Off	0.152	0.152	0.152
		Advance Written Off	0.000	3.901	0.000
		TOTAL (B)	670.565	770.181	858.566
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		101.862	114.878	121.278
Less	FINANCIAL EXPENSES (D)		19.972	15.715	24.484
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		81.890	99.163	96.794
Less/ Add	DEPRECIATION/ AMORTISATION (F)		8.546	7.330	6.310
Less	Prior Year Adjustment		0.071	0.303	0.644
	PROFIT BEFORE TAX (E-F) (G)		73.273	91.530	89.840
Less	TAX (H)		12.598	12.213	26.900
	PROFIT AFTER TAX (G-H) (I)		60.675	79.317	62.940
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		196.440	131.990	86.441
Less	APPROPRIATIONS
		Transfer to General Reserve	6.067	7.932	6.294
		Dividend	5.928	5.928	9.485
		Tax on Dividend	0.985	1.007	1.612
	BALANCE CARRIED TO THE B/S		244.135	196.440	131.990
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	474.202	817.624	864.816
		Other Earnings	0.000	5.848	32.055
	TOTAL EARNINGS		474.202	823.472	896.871
	IMPORTS
		Raw Materials	22.700	129.187	203.018
		Capital Goods	0.000	0.000	4.329
		Others	0.000	28.058	23.864
	TOTAL IMPORTS		22.700	157.245	231.211
	Earnings Per Share (Rs.)		25.59	33.45	26.54

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	7.86	8.96	6.42
Net Profit Margin (PBT/Sales)	(%)	10.26	10.58	9.50
Return on Total Assets (PBT/Total Assets}	(%)	11.93	18.03	15.86
Return on Investment (ROI) (PBT/Networth)		0.23	0.34	0.46
Debt Equity Ratio (Total Liability/Networth)		0.90	0.90	1.90
Current Ratio (Current Asset/Current Liability)		2.87	2.17	2.01

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
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	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

GENERAL SCENARIO AND REVIEW OF OPERATIONS AS ON 31.03.2011:

In the Engineering industry as a whole while the export business has been almost stagnant, the domestic engineering industry particularly power sector is experiencing growth indicators, which Is very relevant to their line or activity. While their export clientele base remained with GE group, Mitsubishi, Iberdrola, as for as domestic market is concerned, their choice clients base is expanding. Their prestigious new clients include L and T Limited, Siemens, Arvea TD, Reliance, Essar Projects, NTPC Jayaprakash power venture, BGR Energy Systems, ABB Utnited, Reliance Infrastructure, Adani Infra India Limited. Their order book position is at Rs.1223.900 Millions. However, their turnover for the March’ 11 period is lower at Rs. 745.600 Millions (Inclusive of ED) as against Rs.869.600 Millions corresponding to the Previous year 31-03-2010, Out of the above export sales are at Rs.449.200 Millions.

The profit before tax for the year is at Rs.73.273 Millions as against Rs.91.530 Millions pertaining to the previous year.

The company is in an advanced stage of venturing into manufacture of Wind Towers in collaboration with Gonavam group of Spain. In this regard the discussions "are also by our JV company Gestamp Powergear Wind Steel Private limited for taking over of an ongoing company based in Kolhapur i.e. Shrenlk Industries Private Limited, a leading manufacturer of Wind Towers. A MOU between their JV Company Gestamp Powergear Wind Steel Private Limited and Shrenlk industries Private Limited has already been signed on 19-09-2011. Further necessary legal and administrative actions are in process to takeover the management control of the later.

OUTLOOK FOR THE CURRENT YEAR / RESEARCH AND DEVELOPMENT R AND DV NEW PRODUCTS:

Following R and D activities are proposed:

1. DC isolator 5000A, new product developed for L and T.

2. Earth Switch for 63KA under development.

3. GCB Forced cooled upto SOMA is considered for development.

4. Improved sealing arrangement for Bus-duct

The above are at various stages of R and D. The company is confident of getting enquiries for the above products from large corporate both with in and outside the country.

Contingent liabilities not provided for:

(Rs. In millions)

Particular	31.03.2011	31.03.2010
Counter guarantee given by the company against guarantees given by the bankers	35.178	119.021
Letters of credit established by the bankers favouring suppliers	5.895	2.139

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U32109KA1980PLC003787
Name of the company	POWER GEARS LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.15, and 16, 3^rd Phase, Peenya Industrial Area, Bangalore- 560058, Karnataka, India E-mail; fna@powergearlimited.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80022624
Type of charge	· Immovable property · Book debts · Movable property (not being pledge) · Others (Stocks, Machineries, etc)
Particular of charge holder	State Bank of India, Specialised Mid Corporate Branch, No. 97, Railway Parallel Road, Kumarapark West, Bangalore - 560020, Karnataka, India E-mail: jsurya@vsnl.com
Nature of instrument creating charge	Supplemental agreement of hypothecation of goods and assets for increase in the overall limit (c.2) Letter regarding the grant of individual limits within the overall limit (c.5) Memorandum of deposit for creation of further charge for term loan (c.10) (all the documents relate to the same modification)
Date of instrument Creating the charge	24.06.2011
Amount secured by the charge	Rs. 666.800 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest WC: Interest @ 4.50% above base rate, Effective rate 13.75% p.a. SLC: Interest @ 5.50% above base rate, Effective rate 14.75% p.a. TL: Interest @ 5.00% above base rate, Effective rate 14.25% p.a. Terms of Repayment WC : Repayable on demand Margin Raw materials (Domestic) : 25% (Imported) : 10% Finished Goods : 25% Stock in process : 25% Book debts : 25% LC and BG : 10% Extent and Operation of the charge Charge extends by way of first charge on all the assets throughout the period sanctioned limits. Others NA
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of the whole of the present and future stocks of raw materials, stock in process, finished goods, book debts, outstanding monies, receivables, claims, bills, plant and machineries, etc belonging to the company EM on co's immovable properties comprising of factory land and building situated at Plot No. 15 and16, Peenya III Phase, Bangalore EM on co's immovable properties comprising of factory land and building situated at No. 17, 18, 20, 29, 30, 31, 32 and factory shed at Thumakunta Village, Hindupur Taluka, Andhra Pradesh EM on co's immovable properties comprising of factory land and building situated at Plot No. GF 3, KSSIDC Building, 14th Cross, Peenya Industrial Area, Bangalore EM on co's immovable properties of Industrial Flat situated at Flat No. GF 2, Ground Floor, MS Building, 14th Cross, Peenya Industrial Area, Bangalore EM on co's immovable properties comprising of land and building situated at No. V 18 and V 19, Peenya Industrial Area, Bangalore measuring 17910 Sqft Second charge on land and building situated at Plot No. B-33, Phase II, Zone B of MEPZ-SEZ, Chennai
Date of instrument modifying the charge	13.01.2009
Particulars of the present modification	Total limits enhanced from Rs. 647.800 Millions to Rs. 666.800 Million. EM on co's immovable property situated at Plot No. 15 and 16, Peenya III Phase, Building, No. 17, 18, 20, 29, 30, 31, 32 and factory shed at Thumakunta Village, Hindupur Taluka, Plot No. GF 3, KSSIDC Building, Flat No. GF 2, MS Building, No. V 18 and V 19, Peenya Industrial Area, Building, Second charge on land aND bldg situated at Plot No. B-33, Phase II, Zone B of MEPZ-SEZ, Chennai. All other terms, conditions and existing securities to continue.

FIXED ASSETS

• Goodwill
• Land
• Buildings
• Plant and Machinery
• Vehicles
• Furniture’s and Fittings
• Office Equipments
• Computers
• Computer Software
• Testing Equipments
• Electrical Equipments
• Tools and Tackles

AS PER WEBSITE DETAILS:

Subject Is

• Professionally managed by a team of Directors qualified from reputed institutions such as IIT, L.S.E (London), Cornell University (USA)
• Headed by Mr. X. Durairaj an Electrical Engineer and an awardee of CII - The Hindu Business Line "EMERGING ENTREPRENEURS OF TAMILNADU"
• Involved in R and D activities led by an experienced PhD from Cornell University, USA
• Supported by a team of 150 qualified and experienced Electrical and Mechanical Engineers and a combined employee strength of more than 600 people
• Sustained by manufacturing bases in 4 different locations in southern India
• Represented in USA, Europe, Middle East, Korea and India

History

• Inception in Bangalore, 1980
• Second unit in Hindupur, 1988
• Third unit in Bangalore, 1997
• Fourth unit in MEPZ Chennai, 2008

Press Release

Government likely to slap 21% duty on imported power gear

NEW DELHI: The power ministry, in the next couple of weeks, will move a note to the Union Cabinet proposing a levy of 21% on imported power equipment, a senior government official said.

On Wednesday, the Prime Minister's Office (PMO) asked the power ministry to float the note to protect local equipment manufacturers, including state-run BHEL, from Chinese and Korean competitors. Power companies have stoutly resisted any increase in duty on equipment import, especially after they have become costlier as the rupee had depreciated by 28% in the past two years.

"The power ministry will send a new note to the Cabinet to impose 5% basic, 12% countervailing and 4% special additional duty on imported power equipment, and it is expected to be taken up in the next 20 days," the official said after attending the PMO meeting.

The meeting was chaired by principal secretary to the PMO Pulok Chatterjee and was attended by officials from the ministries of finance, power and heavy industries. At present, equipment imported for projects of less than 1,000 mw capacity attract 5% customs duty.

A committee headed by Planning Commission member Arun Maira had suggested imposition of 14% levy on power equipment. The rate and structure of duty has been a sticky issue among various departments in the government.

Association of Power Producers, representing 24 power generating companies, has urged the government not to impose any duty on imported power equipment.

Ashok Khurana, its director general, said there has been an implicit duty of more than 28% on equipment and machinery imports against the recommendation of 14% duty by the Arun Maira Committee.

"With this, the domestic manufacturers should be able to compete much better with the imported manufacturers as prices of the latter have gone up by over 28% in rupee terms," he added.

Fuel availability and pricing concerns, financing difficulties, rupee devaluation and the poor financial health of state electricity boards have led to an increase in cost of power generation, and in many cases, have badly affected both the existing and planned projects, leaving developers with no option but to run projects at sub-optimal capacities or go slow on the commissioning schedules, Khurana said.

21% duty imposed on import of power gear; demerger of VSNL land and SAIL divestment okayed

NEW DELHI: The government has imposed a duty of 21% on imported power equipment, helping domestic manufacturers to withstand competition from Chinese rivals, but power producers said the move would raise costs and lead to higher tariffs.

"The Union Cabinet has approved imposing 5% basic, 12% countervailing and 4% special additional duty on imported power equipment," a cabinet minister told ET after a meeting of the Cabinet.

In May, the Cabinet had deferred the decision on imposition of duty on power equipment. The duty will not affect existing import contracts, the minister said. Until now, customs duty was levied only on equipment imported for projects of capacity of less than 1,000 mw.

L and T Power president Ravi Uppal said it's a step in the right direction, but there is need for more measures. "They could have just introduced 5% basic duty and 4% special additional duty on imported power equipment. But this 12% countervailing duty will raise even our costs," he said.

A senior Bharat Heavy Electricals Limited (BHEL) executive hailed the move, but said the basic duty should have been 10%.

Power generating companies expressed disappointment at the decision. Association of Power Producers, representing 24 power generating companies, said the move would raise equipment prices and raise electricity tariffs.

"It will have an adverse impact on retail tariffs. It is inconsistency on government's part as on one hand they are bailing out distribution companies and on the other hand raising tariffs," APP director general Ashok Khurana said.

He said there has been an implicit duty of more than 28% on equipment and machinery imports over the past two years due to rupee depreciation against the 14% duty recommended by a committee headed by Arun Maira, member of Planning Commission. The rate and structure of duty was a bone of contention among various departments of government.

Over 30% of the equipment ordered in the last five years was imported from China and Korea, impacting sales of Indian power-equipment makers led by state-run Bharat Heavy Electricals Limited, Larsen and Toubro.

Demerger of VSNL's surplus land

The Cabinet also approved demerger of the surplus land held by Tata Communications (formerly VSNL) into a separate company, taking the first major step to resolve this issue a decade after the Tatas bought the long-distance communications company.

Last year, the Tatas had told the government that the sale of the surplus land could fetch revenues worth Rs 61560.000 Millions. The Tatas said the estimated value of 770 acres was based on prevailing government rates and added that its estimate also took into account that the land could not be used for residential purposes. The land is spread across five locations in Delhi, Kolkata, Chennai and Pune.

FCRA Amendment deferred

The Cabinet deferred the Forward Contract Regulation Act (Amendment) bill that would have empowered the commodity markets regulator and facilitated more products and institutional investors in the market. The decision was taken due to opposition from UPA constituent Trinamool Congress.

SAIL divestment okayed

The Cabinet Committee on Economic Affairs on Thursday approved the sale of 10.82% of its stake in Steel Authority of India ( SAIL), which may fetch the exchequer over Rs 40000.000 Millions.

CMT REPORT (Corruption, Money Laundering & Terrorism]

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3] Asset Declaration :

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4] Record on Financial Crime :

Charges or conviction registered against subject: None

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Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

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8] Affiliation with Government :

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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.55.19
UK Pound	1	Rs.87.65
Euro	1	Rs.69.16

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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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
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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	-

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