MIRA INFORM REPORT

Report Date :

09.02.2012

IDENTIFICATION DETAILS

Name :	HBL POWER SYSTEMS LIMITED (w.e.f. 09.12.2006)
Formerly Known As :	HBL NIFE POWER SYSTEMS LIMITED (w.e.f. 26.04.2000) SAB NIFE POWER SYSTEMS LIMITED
Registered Office :	8-2-601, Road No. 10, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.08.1986
Com. Reg. No.:	01-006745
Capital Investment / Paid-up Capital :	Rs. 253.000 Millions
CIN No.: [Company Identification No.]	L40109AP1986PLC006745
TAN No.: [Tax Deduction & Collection Account No.]	HYDH00591D
PAN No.: [Permanent Account No.]	AAACH8421K
Legal Form :	A Public Limited Liability Company. The Company’s Shares are listed on the Stock Exchanges
Line of Business :	Design, Development and Manufacturer of specialized batteries and DC systems and associated electronics.
No. of Employees :	950 (Approximately)

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 220000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. There appears some dip in the turnover and profitability of the company on account of reduction in lead acid battery market, due to various macro factors affecting telecom business in the country. However, trade relations are reported as fair. Business is active. Payments are reported to be usually correct. 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 – 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 / Head Office :	8-2-601, Road No. 10, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh, India
Tel. No.:	91-40-23355575 / 23351934 / 23355085
Mobile No.:	91-9848012589 (Mr. S. Prasad) 91-9346269932 (Mr. Govardhan Reddy)
Fax No.:	91-40-23355048 / 23353189
E-Mail :	contact@hbl.in
Website :	http://www.hbl.in
Factory 1 :	Shameerpet Aliabad Post, Lalgadi Malakpet, Shameerpet Mandal- 500078, Hyderabad, R.R.Dist.
Tel. No.:	91- 8418- 244640
Fax No.:	91- 8418-244627/ 244574
E-Mail :	contact@hbl.in
Factory 2 :	Nandigaon Survey No.64-67, 77-81, Nandigaon Village, Kothur Mandal- 509 223, Mahaboobnagar District, Andhra Pradesh, India
Tel. No.:	91-8548-240456
Fax No.:	91-8548-240474
E-Mail :	contact@hbl.in
Factory 3 :	Thumukunta Survey No. 351, Thumukunta Village, Shameerpet Mandal, Rangareddy District, Hyderabad - 500 078, Andhra Pradesh, India
Tel. No.:	91-8418-247680
Fax No.:	91-8418-247683
E-Mail :	contact@emu@hbl.in
Factory 4 :	Mehboobnagar Sy No 155 to 156 (Post) Bhootpur (Village and Mandal), Mahaboobnagar District, Andhra Pradesh, India
Tel. No.:	91-8542-236539/ 236205
E-Mail :	contact@hbl.in
Factory 5 :	Vizayanagaram Sy 123-126, 138(p) to 144(p), Kandavasala Village, Pusapatirega Mandal, Vizayanagaram District, Andhra Pradesh, India
Tel. No.:	91-8922-258159
E-Mail :	contact@hbl.in
Factory 6 :	VSEZ Plot No. Q6 to Q10, R1 to R10 S1 to S9,Phase III, VSEZ, Duvvada, Visakhapatnam -530 046, Andhra Pradesh, India
Tel. No.:	91-891-2543255-56
E-Mail :	contact@hbl.in
Factory 7 :	Haridwar Plot No. 1, Sector 8A, IIE Ranipur (BHEL Haridwar) - 249 403, Uttarakhand, India
Tel. No.:	91-1334-235420/ 235421
E-Mail :	contact@hbl.in
Factory 8 :	Seripally (V), Bhoothpur, District Mahabubnagar, Andhra Pradesh, India
Branch Office :	Located at: · New Delhi · Kolkata · Mumbai · Lucknow · Chennai · Hyderabad · Bangalore · Baroda · Ahmedabad · Kochi
Overseas Office :	Located at: China Hong Kong United States of America United Kingdom Malaysia Germany

DIRECTORS

AS ON 31.03.2011

Name :	Dr. A.J. Prasad
Designation :	Chairman and Managing Director
Name :	Mrs. Kavita Prasad
Designation :	Director
Name :	Mr. P. Ganapathi Rao
Designation :	Director
Name :	Mr. M.S. S. Srinath
Designation :	Director
Name :	Mr. Vivek Mundra (up to 14^th February, 2011)
Designation :	Director
Name :	Mr. V.V. Rao
Designation :	IDBI nominee Director
Name :	Mrs. Preeti Khandelwal
Designation :	Director

KEY EXECUTIVES

Name :	Mr. M V S S Kumar
Designation :	Company Secretary
Audit Committee :	· Mr. P Ganapathi Rao (Chairman of the Committee) · Mrs. Kavita Prasad · Mr. V V Rao · Mrs. Preeti Khandelwal

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2011

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	186,177,928	73.59
Sub Total	186,177,928	73.59
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	186,177,928	73.59
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	4,288,281	1.69
Financial Institutions / Banks	5,000	-
Foreign Institutional Investors	19,372,195	7.66
Sub Total	23,665,476	9.35
(2) Non-Institutions
Bodies Corporate	18,075,801	7.14
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	21,433,085	8.47
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	2,553,968	1.01
Any Others (Specify)	1,093,742	0.43
Non Resident Indians	1,014,011	0.4
Clearing Members	19,731	0.01
Trusts	60,000	0.02
Sub Total	43,156,596	17.06
Total Public shareholding (B)	66,822,072	26.41
Total (A)+(B)	253,000,000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	253,000,000	-

BUSINESS DETAILS

Line of Business :

Design, Development and Manufacturer of specialized batteries and DC systems and associated electronics.

Products :

Product Description	ITC Code
Lead Acid Batteries	850720.00
Nickel Cadmium Batteries	850730.00
Silver Zinc and Other Silver based Batteries (Torpedo)	850620.00
Silver Zinc Batteries (Aircraft)	850780.00
Power Electronic Rectifiers	850440.09
Uninterrupted Power Supply Systems	847199.05
Perforated Steel Strip	721250.09
Lithium Batteries	850620.00
Battery Materials	850790.09

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity
Lead Acid Batteries	Mil Ah	1640
Nickel Cadmium Batteries	Mil Ah	85
Chargers / Rectifiers	Nos.	3500
Lithium Thionyl Chloride Cells	Nos.	11000

Particulars	Unit	Actual Production
Lead Acid Batteries	Lac Ah	6480.47
Nicad Battery Cells	Nos.	40692
Silver Zinc Battery Cells	Nos.	18500
Lithium Battery Cells	Nos.	46
Nickel Cadmium Pocket Plate Batteries	Lac AH	738.54
Electronic Chargers/Rectifiers	Nos.	4642
Battery Operated Vehicles	Nos.	1343

GENERAL INFORMATION

Customers :

TELECOM

· Alcatel, Turkey

· BSNL, India

· Etisalat, Dubai

· Ministry of Communication, Kuwait

· Nigerian Telecom

DEFENCE and AVIATION

· DCNS, France

· Israel Aircraft Industries, Israel

· Ministry of Defence, Cyprus

· Ministry of Defence, India

UPS

· Ametek, USA

· Chloride Industrial, France

· Emerson, India

RAILWAY

· Austrian Railways, Austria

· Delhi Metro Rail Corporation, India

· Greece Railways, Greece

UTILITIES

· ABB, Switzerland

· Alstom Power, Switzerland

· BHEL, India

OIL and GAS

· ADGAS, Abu Dhabi

· Greek Refineries, Greece

· Petroleum Development Oman

· Qatar Petroleum, Qatar

· YPF Oil Company, Argentina

No. of Employees :

950 (Approximately)

Bankers :

· State Bank of India

· State Bank of Hyderabad

· IDBI Bank Limited

· Axis Bank Limited

· ICICI Bank Limited

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
A) Term Loan from
IDBI Bank Limited	1131.245	1105.325
IDBI Bank Limited Short Term Loan	250.000	0.000
State Bank of India	856.763	644.452
State Bank of Hyderabad	546.692	373.769
Exim Bank Limited	82.771	0.000
Axis Bank Limited	947.403	478.492
ICICI Bank Limited	1000.000	0.000
HDFC Limited	1.834	4.240
B) Working Capital Loans from
State Bank of India	1299.893	1064.229
State Bank of Hyderabad	210.379	39.311
IDBI Bank Limited	360.940	327.758
Kotak Mahindra Bank Limited	100.000	0.000
C) Other Loans from
Against Vehicles from HDFC Bank	23.017	18.034
Against Equipment from FLCIL	23.881	42.468
Total	6834.818	4098.078
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Interest Free Sales Tax Loan	167.881	171.637
Inter Corporate Deposit from Holding Company	12.000	0.000
Total	179.881	171.637

Banking Relations :	--
Auditors :
Name :	Satyanarayana and Company Chartered Accountants
Address :	Amar Mansion, Ranigunj, Secunderabad-500003, Andhra Pradesh, India
Cost Auditors :	Narasimha Murthy and Company Cost Accountants Address : Hyderabad
Holding Company :	· Beaver Engineering and Holdings Limited
Subsidiaries :	· Bhagirath Energy Systems Private Limited, Nepal · HBL Power Systems (M) SDN BHD, Malaysia · Agile Electric Drives Technologies and Holdings Private Limited · HBL Germany, GMBH · SCIL Infracon Private Limited
Joint Venture :	· Gulf Batteries Company Limited, Kingdom of Saudi Arabia
Controlled Companies :	· Kairos Engineering Limited, Hyderabad
Associates :	· Naval Systems and Technologies Private Limited · Guided Missile Engineering India Private Limited · Auto TEC Systems (Private) Limited, Bangalore · Sankhya Infotech Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
300000000	Equity Shares	Rs.1/- each	Rs. 300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
253000000	Equity Shares	Rs.1/- each	Rs. 253.000 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		253.000	253.000	242.795
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		4995.415	4860.325	3607.905
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		5248.415	5113.325	3850.700
LOAN FUNDS
1] Secured Loans		6834.818	4098.078	3504.080
2] Unsecured Loans		179.881	171.637	171.637
TOTAL BORROWING		7014.699	4269.715	3675.717
DEFERRED TAX LIABILITIES		74.242	173.142	149.142
TOTAL		12337.356	9556.182	7675.559
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4186.937	3429.789	2881.519
Capital work-in-progress		937.355	788.206	663.740
INVESTMENT		1412.184	206.121	33.636
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2681.659	2283.064	1799.826
	Sundry Debtors	3100.774	3376.735	2826.356
	Cash & Bank Balances	874.831	542.004	817.027
	Other Current Assets	80.813	68.977	54.797
	Loans & Advances	1247.312	556.077	369.774
Total Current Assets		7985.389	6826.857	5867.780
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1727.967	1267.710	1048.408
	Other Current Liabilities	344.584	185.557	486.931
	Provisions	111.958	241.524	240.883
Total Current Liabilities		2184.509	1694.791	1776.222
Net Current Assets		5800.880	5132.066	4091.558
MISCELLANEOUS EXPENSES		0.000	0.000	5.106
TOTAL		12337.356	9556.182	7675.559

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	9949.455	11095.149	12438.958
		Other Income	79.036	65.401	50.885
		Exceptional Income	150.700	0.000	0.000
		TOTAL (A)	10179.191	11160.550	12489.843
Less	EXPENSES
		Material Cost	6541.792	6399.026	8203.037
		Manufacturing and Service Cost	684.879	719.498	673.635
		Employee Cost	1167.001	975.779	727.357
		Administration, Selling and Other Cost	926.702	952.352	827.007
		Amortization of Intangible Assets	10.256	10.256	10.256
		Extra-ordinary items	0.000	0.000	13.582
		TOTAL (B)	9330.630	9056.911	10454.874
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		848.561	2103.639	2034.969
Less	FINANCIAL EXPENSES (D)		493.443	383.144	388.289
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		355.118	1720.495	1646.680
Less/ Add	DEPRECIATION/ AMORTISATION (F)		303.015	280.661	278.397
	PROFIT BEFORE TAX (E-F) (G)		52.103	1439.834	1368.283
Less	TAX (H)		(112.392)	435.655	458.727
	PROFIT AFTER TAX (G-H) (I)		164.495	1004.179	909.556
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		310.869	195.196	170.857
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	800.000	800.000
		Provision Dividend	25.300	75.900	72.838
		Tax on Dividend	4.104	12.606	12.379
	BALANCE CARRIED TO THE B/S		445.960	310.869	195.196
	EARNINGS IN FOREIGN CURRENCY
		Export Sales	1758.754	1148.057	1167.485
	TOTAL EARNINGS		1758.754	1148.057	1167.485
	IMPORTS
		Raw Materials, Components and Spares	2488.670	2858.710	3909.745
		Capital Item / Equipment	177.315	81.985	114.116
	TOTAL IMPORTS		2665.985	2940.695	4023.861
	Earnings Per Share (Rs.)		0.65	4.06	3.74

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011
	1^st Quarter	2^nd Quarter
Net Sales	2044.200	3110.600
Total Expenditure	1885.300	2699.700
PBIDT (Excl OI)	158.900	410.900
Other Income	27.600	25.000
Operating Profit	186.500	435.900
Interest	190.200	218.700
Exceptional Items	0.000	0.000
PBDT	(3.700)	217.200
Depreciation	90.900	91.000
Profit Before Tax	(94.600)	126.200
Tax	10.000	10.100
Provisions and contingencies	0.000	0.000
Profit After Tax	(104.600)	116.100
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	(104.600)	116.100

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.62	8.99	7.28
Net Profit Margin (PBT/Sales)	(%)	0.52	12.97	10.99
Return on Total Assets (PBT/Total Assets}	(%)	0.43	14.03	15.63
Return on Investment (ROI) (PBT/Networth)		0.01	0.28	0.35
Debt Equity Ratio (Total Liability/Networth)		1.77	1.16	1.41
Current Ratio (Current Asset/Current Liability)		3.66	4.02	3.30

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE REVIEW 2010-11:

Overall Sales of the Company for the year 2010-11 were recorded at Rs. 9949.400 Millions as compared to previous year sales of Rs. 11095.100 Millions. This decrease is primarily on account of a reduction in lead acid battery market, due to various macro factors affecting telecom business in the country. The company passed on the reduction in the average cost of lead. This impact was reinforced by lower demand from the telecom sector due to macro economic factors. Profit after tax was Rs.164.500 Millions for the year 2010-11 as compared to previous year of Rs.1004.200 Millions.

ASSOCIATE COMPANY

Sankhya Infotech Limited (Sankhya): 8,40,482 equity shares being 9.89% of the equity of Sankhya were acquired through open market for an aggregate value of Rs. 33.100 Millions. The Company has also subscribed for allotment of 12,20,000 convertible warrants for an issue price of Rs. 32.03 per warrant aggregating to Rs. 39.100 Millions, of which Rs. 19.500 Millions being 50% of the issue price was paid up front. These warrants will be converted into equal number of equity shares of Rs. 10/- each upon payment of balance 50% of the issue price within 18 months from the date of allotment of such warrants and thereby, post conversion, the Company will hold 14.97% of the equity in Sankhya.

JOINT VENTURES

HBL ELTA Avionics Systems Private Limited – During the year, the investment of Rs. 22.500 Millions in joint venture has been divested for a total consideration of Rs.136.600 Millions.

MANAGEMENT DISCUSSION AND ANALYSIS 2010-11

THE PERFORMANCE:

The company has seen a dip in sales as compared to 2009-10, and a very sharp decline in profits. The primary reason for this was the drastic fall in demand from the telecom sector, which was a large proportion of the company’s business. Several new product lines were commercialized which allowed top line to be maintained but margins remained low due to the early stage on the learning curve for these products.

TELECOM SECTOR:

Continuing turbulence in the Telecom sector resulted in significant reduction in demand for batteries as new roll outs continued to be deferred or delayed. The company was able to maintain its market share in the face of severe competition. However the reduced demand resulted in a buyer’s market where the company was unable to pass through rise in raw material prices to customers. Rise in lead prices in unfavourable market conditions, combined with the sharp reduction in volumes, lead to a complete erosion of margins in this segment.

Investments in new rollouts are starting, and demand for replacement of prior supplies of batteries is also increasing. The management expects the telecom sector to stabilise in 2011-12, and margins to return to normal levels.

OTHER SECTORS BATTERIES:

All other segments of the company’s business showed steady growth which enabled the company to report only a marginal dip in turnover, despite the poor business from Telecom. Both Nickel Cadmium and non-telecom lead acid batteries are showing strong growth trends for 2011-12, in both domestic as well as export markets.

NEW MARKETS IN BATTERIES:

The company has launched several new product lines in the latter part of 2010-11, which will yield positive results from 2011-12 onwards. The company has entered the retail segment with products for Automotive (2 and 4 wheeler), UPS and Inverter markets, and is in process of strengthening its distributor and dealer network all over India.

SOLAR PHOTOVOLTAIC SYSTEMS (SPV) BUSINESS:

The company has entered the off grid systems SPV market by using its expertise in batteries and power electronics for these applications and has won several prestigious tenders for installation of SPV systems, including for the Prime Minister’s Residence in New Delhi. This is expected to be a significant growth area for the company in future.

POWER ELECTRONICS:

Power Electronics sales are growing in both exports and domestic sales, with new products that were launched in 2010-11 adding to this growth. Margins have also been maintained, and management is confident this business will continue to do well.

RAILWAY SIGNALLING:

After the long delays in product qualification process, which were highlighted in the previous years. Management Discussion and Analysis, the company has received significant orders to be executed in 2011-12 and management is confident that this business will now show rapid growth in future.

DEFENCE ELECTRONICS:

After many years of delay the company has received orders in the defence electronics sector, and more such orders are expected. These orders will contribute significantly to both top and bottom line from 2012 onwards.

UNAUDITED FINANCIAL RESULTS FOR THE HALF YEAR ENDED 30TH SEPTEMBER 2011 AFTER LIMITED REVIEW

(Rs. in Millions)

Particulars	Quarter Ending 30.09.2011 (Unaudited)	Half Year Ending 30.09.2011 (Unaudited)
1. a) Net Sales / Income from Operations	3110.600	5154.800
b) Other Operating Income	--	--
2. Expenditure
(a) (Increase) / Decrease in stock in trade and Work in Progress	72.600	(74.900)
(b) Consumption of Raw Materials	1806.000	3123.200
(c) Purchase of traded goods	38.000	53.000
(d) Employees Cost	283.700	556.000
(e) Depreciation	91.000	181.900
(f) Other Expenditure	499.400	927.700
(g) Total Expenditure	2790.700	4766.900
3. Profit / (Loss) From Operations before other Income Interest & Exceptional Items (1-2)	319.900	387.900
4. Other Income	25.000	52.600
5. Profit/(Loss) before Interest and Exceptional items (3+4)	344.900	440.500
6. Interest	218.700	408.900
7. Profit / (Loss) after interest before Exceptional items (5-6)	126.200	31.600
8. Exceptional Items	--	--
9. Profit / (Loss) From Ordinary activities before Tax (7-8)	126.200	31.600
10. Tax Expenses	10.100	20.100
11. Net Profit/(Loss) From Ordinary activities after Tax (9-10)	116.100	11.500
12. Extraordinary Items (net of tax expense)	--	--
13. Net Profit (+) / Loss (-) for the period (11-12)	116.100	11.500
14. Paid Up Equity Share Capital ( Face Value of the share Rs.1/- each )	253.000	253.000
15. Reserves (Excluding Revaluation Reserves)	--	--
16. Earning Per Share
a) Basic EPS before Extraordinary items for the period, for the year to date and for the previous year (not annualised)	0.46	0.05
b) Diluted EPS before Extraordinary items for the period, for the year to date and for the previous year (not annualised)	0.46	0.05
c) Basic EPS after Extraordinary items for the period, for the year to date and for the previous year (not annualised)	0.46	0.05
d) Diluted EPS after Extraordinary items for the period, for the year to date and for the previous year (not annualised)	0.46	0.05
17. Public Shareholding
- Number of Shares	68155833	68155833
- Percentage of shareholding	26.94%	26.94%
18. Promoters and Promoter group share holding
a) Pledged / Encumbered
- Number of Shares	16901300	16901300
- Percentage of share (as a % of the total shareholding of promoter and promoter group)	9.14%	9.14%
- Percentage of shares(as a % of the total share capital of the company)	6.68%	6.68%
b) Non-encumbered
- Number of Shares	167942867	167942867
- Percentage of Share (as a % of the total shareholding of promoter and promoter group)	90.86%	90.86%
- Percentage of Share (as a % of the total share capital of the company)	66.38%	66.38%

Notes:

1. The results for the half year ended 30th September, 2011 were reviewed by the Audit Committee in its meeting held on 11^th November,2011 and were taken on record by the Board of Directors at their meeting held on 11^th November,2011

2. The results were also subjected to Limited Review by the Statutory Auditors of the Company

3. Details of investors complaints for the period ended 30^th September, 2011 -(Nos): Opening Balance : Nil , Received : 19, Disposed off : 19, Closing Balance: NIL

STATEMENT OF ASSETS AND LIABILITIES

(Rs. in millions)

PARTICULARS	Quarter Ending 30.09.2011 (Unaudited)
SHAREHOLDERS FUNDS
1] Share Capital	253.000
2] Reserves & Surplus	5007.000
LOAN FUNDS	7417.000
DEFERRED TAX LIABILITIES	94.200
TOTAL	12771.200
FIXED ASSETS [Net Block]	5578.800
INVESTMENT	1454.000
CURRENT ASSETS, LOANS & ADVANCES
Inventories	3245.200
Sundry Debtors	3395.300
Cash & Bank Balances	589.900
Loans & Advances	1652.200
Total Current Assets	8882.600
Less : CURRENT LIABILITIES & PROVISIONS
Current Liabilities	3071.700
Provisions	72.500
Total Current Liabilities	3144.200
Net Current Assets	5738.400
TOTAL	12771.200

SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE HALF YEAR ENDED 30^TH SEPTEMBER 2011

(Rs. in millions)

Particulars	Quarter Ending 30.09.2011 (Unaudited)	Half Year Ending 30.09.2011 (Unaudited)
Segment Revenue
Batteries	2834.200	4730.300
Unallocated	281.300	444.900
Total	3115.500	5175.200
Less: Intersegment Revenue	4.900	20.400
Net Sales/Income from Operations	3110.600	5154.800
Segment Results
Batteries	439.900	665.600
Unallocated	51.100	46.000
Total	491.000	711.600
Less: i ) Interest	218.700	408.900
ii ) Unallocable Expenditure net of	171.100	323.700
iii ) Unallocable Income	25.000	52.600
Total Profit Before Tax after Extraordinary Items	126.200	31.600
Segment-wise Capital employed (Assets minus Liabilities)
Batteries	7887.000	7887.000
Unallocated	(2627.000)	(2627.000)
Total	5260.000	5260.000

Note: Segment revenue, results and assets and liabilities have the same meaning as defined in the Accounting Standard AS 17 issued by the Institute of Chartered Accountants of India.

FIXED ASSETS

· Land – Freehold

· Land – Leasehold

· Buildings – Factory

· Buildings – Others

· Plant and Machinery

· Office Equipment

· Furniture and Fixtures

· Vehicles

· Technical Library

WEB SITE DETAILS

BUSINESS DESCRIPTION

Subject is engaged in designing, development and manufacture of specialized batteries and direct current (DC) systems and other engineering products. It offers a range of batteries and associated electronics. It operates from different manufacturing facilities and regional offices across India. The Company's operations include batteries of different types, electronics and railway signaling contracts. Batteries segment consists of various types of batteries for defense, aviation, telecom and industrial application. Its products include lead acid batteries, nickel cadmium batteries, silver zinc and other silver based batteries (torpedo), silver zinc batteries (aircraft), power electronic rectifiers, uninterrupted power supply systems, perforated steel strip, lithium batteries and battery materials. During the fiscal year ended March 31, 2011 (fiscal 2011), it produced 40,692 numbers of nicad battery cells and 46 numbers of lithium battery. For the fiscal year ended 31 March 2010, Subject revenues decreased 10% to RS11.24B. Net income increased 10% to RS995.9M. Revenues reflect a decrease in income from domestic sales and lower export sales. Net income was offset by a decrease in material cost, decreased finance cost, a fall in liquidated damages, lower other selling expenses and decreased commission on sale of the company.

MORE BUSINESS DESCRIPTIONS

Manufacture and distribution of nickel cadmium pocket plate batteries, defence electronics and power electronics, including switch mode rectifiers, torpedo batteries, aviation batteries, valve regulated lead acid batteries and fibre electrodes. The company's customer focus is on five sectors: aviation, communication, defence, industry and railways. ISO 9001 certified

MANAGEMENT

A. J. PRASAD - EXECUTIVE CHAIRMAN OF THE BOARD, MANAGING DIRECTOR

Dr. A. J. Prasad is Executive Chairman of the Board, Managing Director of HBL Power Systems Limited. He is Director of Beaver Engineering Limited, Guided Missile Engineering India Private Limited. He holds B. Tech from IIT, Khargpur, MS in Management from MIT USA, Doctorate in International Business from Columbia University, USA.

Education

Ø PHD International Business, Columbia University

Ø MS Management, Massachusetts Institute of Technology

Ø B, Indian Institute of Technology, Kharagpur

PREETI KHANDELWAL - INDEPENDENT DIRECTOR

Mrs. Preeti Khandelwal serves as Independent Director of HBL Power Systems Limited. She is a Practicing Company Secretary and has experience in Company law and FEMA related issues. She is a Director of R-Squart Innovations (Private) Limited.

M. KAVITA PRASAD - WHOLE TIME DIRECTOR

Mrs. M. Kavita Prasad is Whole Time Director of HBL Power Systems Limited. She was Non-Executive Director of the Company. She is a Graduate in Commerce, Post-Graduate Diploma in Computer Application from NIIT. Her other directorships include: Beaver Engineering Limited, Kairos Engineering Limited, Naval Systems and Technologies Private Limited, HBL ELTA Avionics Systems Private Limited, HBL Electric Drives Private Limited and Sankhya Infotech Limited. She is Chairperson -Share Transfer Committee, Member of Audit Committee.

P. GANAPATI RAO - INDEPENDENT DIRECTOR

Mr. P. Ganapati Rao is Independent Director of HBL Power Systems Limited. He is Chairman of the Audit Committee. He is FCA. He is a Practicing Chartered Accountant and has experience in Finance, Audit Systems and as well as Capital Market.

MIKKILINENI SATYANARAYANA SUBRAMANYA SRINATH - WHOLE TIME DIRECTOR

Mr. Mikkilineni Satyanarayana Subramanya Srinath is Whole Time Director of HBL Power Systems Limited. He holds BA Hons (Econamics). He holds directorships in Beaver Engineering Limited, Kairos Engineering Limited. Naval Systems and Technologies Private Limited, HBL ELTA Avionics Systems Private Limited, HBL Electric Drives Private Limited, GSE (Vizag) Private Limited.

J. K. VERMA - KEY MANAGEMENT PERSONNEL

Mr. J. K. Verma is Key Management Personnel of HBL Power Systems Limited. He is a professional with technical background, having experience in the manufacturing sector, retired from ITI Limited a Public Sector Undertaking based at Bangalore as Director and appointed whole time director. His experience and services would be useful to HBL Power Systems Limited. He has varied experience in manufacturing sector. His other Directorships include: HBL Elta Avionics Systems Private Limited.

NEWS

PRESS PRELEASE

HBL POWER SYSTEMS GAINS ON PLANS TO ROLL-OUT SOLAR POWER ASSISTED MOTOR BASED RICKSHAW

09 December 2011

India, Dec. 09 -- HBL Power Systems is currently trading at Rs. 16.95, up by 0.05 points or 0.30% from its previous closing of Rs. 16.90 on the BSE. The scrip opened at Rs. 16.10 and has touched a high and low of Rs. 17.20 and Rs. 16.10 respectively. So far 4604 shares were traded on the counter. The BSE group 'B' stock of face value Rs. 1 has touched a 52 week high of Rs. 29.60 on 05-Jan-2011 and a 52 week low of Rs. 12.20 on 18-Aug-2011.Last one week high and low of the scrip stood at Rs. 17.25 and Rs. 16.00 respectively. The current market cap of the company is Rs. 4275.700 Millions. The promoters holding in the company stood at 73.06% while Institutions and Non-Institutions held 9.37% and 17.57% respectively. HBL Power Systems, a Rs 10000.000 Millions company, has build up a solar power assisted, motor-based rickshaw to move goods in small cities aiming corporates eager to earn green mileage. The company has designed the rickshaw to carry a freight of 250 kg, at a speed of up to 24 km per hour. The rickshaw is priced at about Rs 90,000, and gives a mileage of 40 km on a single battery charge. The product is intended at replacing non-motorized cycle rickshaws that have much slower speed. HBL has based its product on Soleckshaw, a solar power battery assisted, pedalled rickshaw developed by CSIR and CMERI, Durgapur. In January the company will start the pilot trials of rickshaw. HBL Power Systems has approached various retailers with this model, and claims that it has received good response from customers. Further, the company has fitted devices to prevent over-loading and over-speeding to improve longevity of the product.

CARE CUTS RATINGS ON HBL POWER SYSTEMS' BANK LOANS TO BBB+/A2+

11 November 2011

Nov 11, 2011 - CARE today lowered to BBB+ the INR-6.65-billion (USD 133m/EUR 97m) long-term bank loan and to A2+ the INR-5.29-billion short-term bank loan of nickel batteries maker HBL Power Systems Limited (BOM:517271) from A and A1, respectively.

The downgrade reflects the weakening demand for lead acid batteries from the telecommunications sector, which results in a drop in the company's operational performance, sharp fall in profitability margins, decline in gearing levels and diversification of business. Other rating constrains include the volatility in raw material prices and the risk related to current capacity expansions.

The ratings benefit from the experience of the company's promoters and its long presence in the night battery segment.

Any improvement in the company's operational and financial risk profile and benefits from its strategic investments will lead to changes in the ratings.

(INR 100 = USD 1.995/EUR 1.458)

OUTCOME OF ANNUAL GENERAL MEETING

06 September 2011

India, Sept. 06 -- Hbl Power Systems Limited has informed the Exchange regarding the Outcome of the Annual General Meeting of the Company held on September 05, 2011.

DISC UNDER REG SUBS ACQ AND TAKEOVER AND SEBI INSIDER TRADING REG

11 April 2011

India, April 11 -- Short Description: Disc under Reg Subs Acq and Takeover and SEBI Insider Trading Reg. Entity making the Disclosure: HBL Power Systems Limited. Name of the Target Company: HBL Power Systems Limited. Name of the acquirers/sellers and PACs with them: Mrs. Kavita Prasad - PAC. Date of Acquisition/sale: 18-MAR-2011. Mode of acquisition (e.g. open market / public issue / rights issue / preferential allotment / interest transfer etc.): Open Market Purchase. Mode of sale (e.g. open market/MOU/off market, etc.): Nil. Particulars of acquisition/sale: Shares/Voting rights (VR) before acquisition under consideration: Number - 8220285; Type - Equity; % w.r.t. total paid up capital of Target Company - 3.25. Shares/voting rights acquired: Number - 200000; Type - Equity; % w.r.t. total paid up capital of Target Company - 0.08. Shares/VR after acquisition: Number - 8420285; Type - Equity; % w.r.t. total paid up capital of Target Company - 3.33.

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. 49.06
UK Pound	1	Rs. 78.08
Euro	1	Rs. 65.15

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	6
--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	YES
--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.