MIRA INFORM REPORT

Report Date :

25.02.2012

IDENTIFICATION DETAILS

Name :	BIRLA POWER SOLUTIONS LIMITED [w.e.f. 24.03.2004]
Formerly Known As :	BIRLA YAMAHA LIMITED
Registered Office :	Industry House, 159, Churchgate Reclamation, Mumbai-400020, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.04.1984
Com. Reg. No.:	11-032773
Capital Investment / Paid-up Capital :	Rs.2135.211 Millions
CIN No.: [Company Identification No.]	L31101MH1984PLC023773
Legal Form :	A Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer of Diesel Generators Sets, Portable Generators Sets Inverters, Pumps, Multi Purpose Engines and Power Tillers.
No. of Employees :	500 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – 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 :	Industry House, 159, Churchgate Reclamation, Mumbai-400020, Maharashtra, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	nagesh@yashbirlagroup.com
Head Office :	901, Bhikaji Cama Bhawan, 11, Bhikaji Cama Place, New Delhi-110066, India
Tel. No.:	91-11-42594100
Fax No.:	91-11-42594199
E-Mail :	mktg@birlapower.com
Factory 1 :	Lal Tappar, P.O. Resham Mazri-248140, Dehradhun, Uttarakhand, India
Factory 2 :	Varekwadi, Taluka Patan, District Satara, Maharashtra, India

DIRECTORS

As on 31.03.2011

Name :	Mr. Yashovardhan Birla
Designation :	Chairman
Name :	Mr. P.V.R. Murthy
Designation :	Managing Director
Name :	Mr. M.S. Arora
Designation :	Director (Appointed w.e.f. 12.11.2010)
Name :	Mr. Y.P. Trivedi
Designation :	Independent Director
Name :	Mr. Rajesh V. Shah
Designation :	Independent Director
Name :	Mr. Upkar Singh Kohli
Designation :	Independent Director

KEY EXECUTIVES

Name :	Mr. N. Nagesh
Designation :	Company Secretary and Compliance Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2011

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2,409,600	0.16
Bodies Corporate	83,851,584	5.42
Sub Total	86,261,184	5.58
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	86,261,184	5.58
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	10,800	-
Financial Institutions / Banks	27,000	-
Central Government / State Government(s)	6,474,564	0.42
Foreign Institutional Investors	81,800,000	5.29
Sub Total	88,312,364	5.71
(2) Non-Institutions
Bodies Corporate	164,716,089	10.65
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	915,287,418	59.18
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	243,629,994	15.75
Any Others (Specify)	48,309,036	3.12
Non Resident Indians	46,795,609	3.03
Trusts	13,064	-
Clearing Members	1,487,963	0.10
Overseas Corporate Bodies	12,400	-
Sub Total	1,371,942,537	88.71
Total Public shareholding (B)	1,460,254,901	94.42
Total (A)+(B)	1,546,516,085	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	588,680,820	-
Sub Total	588,680,820	-
Total (A)+(B)+(C)	2,135,196,905	-

BUSINESS DETAILS

Line of Business :

Manufacturer of Diesel Generators Sets, Portable Generators Sets Inverters, Pumps, Multi Purpose Engines and Power Tillers.

Products :

Product Description	Item Code
Diesel Generator Set	80211.00
Portable Generator Set	80220.90
Multi Purpose Engine	80790.90

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Licensed Capacity	Installed Capacity*
D.G. Set up to 1000 KVA	Nos.	50000	20000
Portable Generator Sets	Nos.	107000	107000
Multipurpose Engines	Nos.	75000	75000
Wind Energy	KWH	NA	1103800
Inverters	Nos.	150000	60000
UPS	Nos.	150000	NIL
Auto Mains Panel	Nos.	10000	NIL
Battery Chargers	Nos.	10000	NIL
Voltage Stabilizers	Nos.	75000	NIL

NOTE: * Installed capacity has been certified by the management and relied upon by the auditor, being a technical matter.

ACTUAL PRODUCTION:

PARTICULAR	ACTUAL PRODUCTION [QUANTITY]
Generators	5963
Multi Purpose Engine	210
Inverter (E P)/ Battery	4020
Pump Set and Sprayers	8476
Components for Sale Servicing for generator sets, multipurpose engine and miscellaneous items	*
Wind Energy (KVA)	1103612

NOTE: * In view of considerable number of items having diverse nature, it is not practicable to furnish quantitative

information.

GENERAL INFORMATION

Customers:

· Reliance

· Metal Tech Bodies Mahipalpur, New Delhi

· U.P. Treasury, Lucknow

· District Health Officer, Maharashtra

· Haryana DGS and D, Chandigarh

· Idea

· Vodafone

· Nutek

· Ericsson

· Quippo

· Hayat

· Nokia

· BSNL

· Airtel

· MTNL

· Essar

· Spice

No. of Employees :

500 [Approximately]

Bankers :

State Bank of India, Overseas Branch, Jawahar Vyapar Bhavan, 1, Tolstoy Marg, New Delhi-110001, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Cash credit from Banks	397.166	394.061
SBI Factors and Commercial Services	0.000	63.902
Loan from SREI Infrastructure Finance Ltd.	0.000	74.018
Other Loans (Due within one year Rs.1.508 Millions (Previous Year Rs.0.518 Millions)	3.692	0.847
Total	400.858	532.828
Unsecured Loan
Fixed Deposits	519.089	87.536
Loan from Companies (Due within one year Rs.71.448 Millions)	243.884	391.430
Add : Interest accrued and due	40.290	27.132
Total	803.263	506.098

NOTE:

1. The Cash Credit facilities from Banks is secured by first pari passu charge by way of mortgage of immovable assets and hypothecation of inventories, book debts and other receivables, both present and future.

2. Secured by way of first charge of Company’s book debts in respect of agreed customers.

3. Secured by first and exclusive charge by way of hypothecation of whole of the movable properties of the Company including its movable plant and machinery, machinery spares, tools and accessories and other movables, both present and future and also pari-passu charge by way of Mortgage of all those peices and parcels of Company’s land admeasuring 36.82 acres bearing part of Khasra No. 1200/266/1/3, 1200/266/1/4, 1200/266/1/5, 1200/266/1/2, 1200/266/1/1 situated and lying at Majri Grant, Lal Tappar, Paranga Parwadun District Dehradun, Uttarakhand.

4. Other loans from Banks / Financial Institutions are secured by hypothecation of Motor Vehicles purchased there under.

5. Includes unsecured loan of Rs. Nil (Previous Year Rs.70.000 Millions) for which other group companies have given security to the lenders by way of pledge pf some of their investments.

Banking Relations :	--
Auditors :
Name :	Thakur Vaidyanath Aiyar and Company Chartered Accountants
Address :	11-B, Vasta House, Janmabhoomi Marg, Fort, Mumbai – 400001, Maharashtra, India
Subsidiaries:	· Birla Urja Limited · Birla Power Solutions Limited FTZ

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000000	Equity Shares	Re.1/- each	Rs.3000.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
2135224905	Equity Shares	Re.1/- each	Rs.2135.225 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2135196905	Equity Shares	Re.1/- each	Rs.2135.197 Millions
	Add: Forfeited Shares		Rs.0.014 Million
	Total		Rs.2135.211 Millions

NOTE:

1. 2,35,670,Equity shares of Rs.10/-each were issued and allotted on 26th December, 1995 to Industrial Credit and Investment Corporation of India Ltd. as per the Rehabilitation Scheme sanctioned by the Board for Industrial and Financial Reconstruction, vide order dated 20th November,1995.

2. 2,92,610 Equity shares of Rs.10/- each were issued and allotted on 26th December, 1995 to Industrial Development Bank of India as per the Rehabilitation Scheme sanctioned by the Board for Industrial and Financial Reconstruction, vide order dated 20th November, 1995.

3. 2,08,920 Equity shares of Rs.10/- each were issued and allotted on 26th December, 1995 to Industrial Finance Corporation of India Ltd. as per the Rehabilitation Scheme sanctioned by the Board for Industrial and Financial Reconstruction, vide order dated 20th November, 1995.

4. 1,00,620 Equity shares of Rs.10/- each were issued and allotted on 26th December, 1995 to Unit Trust of India as per the Rehabilitation Scheme sanctioned by the Board for Industrial and Financial Reconstruction, vide order dated 20th November, 1995.

5. 1,11,820 Equity shares of Rs.10/- each were issued and allotted on 26th December, 1995 to Life Insurance Corporation of India as per the Rehabilitation Scheme sanctioned by the Board for Industrial and Financial Reconstruction, vide Order dated 20th November, 1995.

6. 19,310 Equity shares of Rs.10/- each were issued and allotted on 26th December, 1995 to The New India Assurance Co. Ltd. as per the Rehabilitation Scheme sanctioned by the Board for Industrial and Financial Reconstruction, vide order dated 20th November, 1995.

7. 16,940 Equity shares of Rs.10/- each were issued and allotted on 26th December, 1995 to The Oriental Insurance Co. Ltd. as per the Rehabilitation Scheme sanctioned by the Board for Industrial and Financial Reconstruction, vide order dated 20th November, 1995.

8. 14,110 Equity shares of Rs.10/- each were issued and allotted on 26th December, 1995 to General Insurance Corporation of India as per the Rehabilitation Scheme sanctioned by the Board for Industrial and Financial Reconstruction, vide order dated 20th November, 1995.

9. 35,58,65,995 Equity Shares were allotted on 25^th October, 2010 to the eligible Share holders of the Company as Bonus Shares in the ratio of One new fully paid up Equity Share for every Five Equity Shares of Re. 1/- each held in the Company as on the record date i.e. 21-10-2010.

10. 1,06,21,92,350 Convertible Equity Share Warrants were converted on 09-07-2010 into Equity Shares, against the underlying 2,12,43,847 GDR’s issued to Bank of New York, Melon.

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		2135.211	717.153	424.653
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3089.195	2042.655	1553.385
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		5224.406	2759.808	1978.038
LOAN FUNDS
1] Secured Loans		400.858	532.828	599.826
2] Unsecured Loans		803.263	506.098	352.675
TOTAL BORROWING		1204.121	1038.926	952.501
DEFERRED TAX LIABILITIES		11.411	18.105	6.401
TOTAL		6439.938	3816.839	2936.940
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		623.298	596.291	521.732
Capital work-in-progress		292.608	41.191	101.725
INVESTMENT		735.293	18.040	0.048
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	446.440	454.383	439.794
	Sundry Debtors	1702.427	1307.569	1213.187
	Cash & Bank Balances	1394.735	934.079	60.689
	Other Current Assets	100.212	50.895	41.915
	Loans & Advances	1933.226	1308.840	1144.752
Total Current Assets		5577.040	4055.766	2900.337
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	788.489	698.739	480.642
	Other Current Liabilities	43.771	25.390	28.210
	Provisions	81.026	215.331	94.612
Total Current Liabilities		913.286	939.460	603.464
Net Current Assets		4663.754	3116.306	2296.873
MISCELLANEOUS EXPENSES		124.985	45.011	16.562
TOTAL		6439.938	3816.839	2936.940

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2919.921	2381.234	2247.723
		Other Income	120.719	20.254	32.633
		TOTAL (A)	3040.640	2401.488	2280.356
Less	EXPENSES
		Raw Materials Consumed, Purchase of Finished goods and Manufacturing Expenses	2365.563	1868.927	1738.539
		Employment Costs	126.801	123.084	112.157
		Administrative, Selling and Other Expenses	173.468	194.882	180.072
		Increase/ (Decrease) in Stocks	1.429	(13.184)	(9.437)
		TOTAL (B)	2667.261	2173.709	2021.331
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		373.379	227.779	259.025
Less	FINANCIAL EXPENSES (D)		234.761	163.333	146.219
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		138.618	64.446	112.806
Less/ Add	DEPRECIATION/ AMORTISATION (F)		37.802	34.666	34.578
	PROFIT BEFORE TAX (E-F) (G)		100.816	29.780	78.228
Less	TAX (H)		25.251	16.320	46.501
	PROFIT AFTER TAX (G-H) (I)		75.565	13.460	31.727
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		31.807	173.961	142.234
Less	APPROPRIATIONS
		Transfer to General Reserve
		Proposed Dividend	0.000	133.450	0.000
		Tax on Dividend	0.000	22.164	0.000
	BALANCE CARRIED TO THE B/S		107.372	31.807	173.961
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.708	0.000	3.989
	IMPORTS
		Raw Materials	8.900	5.781	0.491
	Earnings Per Share (Rs.)		0.04	0.03	0.07

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	934.200	893.700	997.560
Total Expenditure	824.320	779.730	892.240
PBIDT (Excl OI)	109.880	113.970	105.320
Other Income	0.020	8.330	0.190
Operating Profit	109.900	122.300	105.510
Interest	79.190	90.140	80.910
PBDT	30.710	32.160	24.600
Depreciation	8.890	8.960	9.320
Profit Before Tax	21.820	23.200	15.280
Tax	1.370	0.720	2.230
Profit After Tax	20.450	22.480	13.050
Net Profit	20.450	22.480	13.050

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.49	0.56	1.39
Net Profit Margin (PBT/Sales)	(%)	3.45	1.25	3.48
Return on Total Assets (PBT/Total Assets}	(%)	1.63	0.64	2.29
Return on Investment (ROI) (PBT/Networth)		0.02	0.01	0.04
Debt Equity Ratio (Total Liability/Networth)		0.41	0.72	0.79
Current Ratio (Current Asset/Current Liability)		6.11	4.32	4.81

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS

During the financial year the total revenue for the financial year ended 31st March, 2011 was Rs.3040.640 millions as against Rs.2401.488 millions during the previous financial year ended 31st March, 2010 showing an increase of 26.61%.Similarly profit after tax for the same periods were Rs.75.565 millions and Rs.13.460 millions respectively showing an increase of 461.4%. This was possible due to better management of working capital funds and cutting costs. During this financial year, the Company has worked with various prestigious customers in the field of Education, Defence, Financial Services, various e-Governance programmes, etc. One of these successfully executed orders included a significantly large order for an Education Project in Bihar.

FUTURE OUTLOOK

Recognizing the need of the market, they are working towards introducing newer products with specific emphasis on agricultural segment. In the financial year 2011-12, they are expecting to launch Diesel Pump Set and Power Tiller. They realize, with government’s initiatives on farm mechanization, these products will be in great demand with high growth rates.

They are building on the strength of last year’s introduction of LED business unit. In some of the government agencies, their products have passed the testing parameters and they expect order flow to start during current financial year. Further the company recognizes that employees are key strength and has lately been on a drive to induct young and bright sales force. This is to ensure that they are closer to customer and helps us identify products that they need.

SUBSIDIARY COMPANIES

Birla Urja Limited

The company is actively exploring various possibilities for setting up power projects based on renewable and non renewable sources in the country. The company has been registered with Gujarat government for 50 MW Solar PV project under “VIBRANT GUJARAT 2011”. The company has also been registered with Government of Rajasthan for 50 MW thermal project and 5 MW solar PV project and the company is aggressively pursuing these projects and your directors are hopeful of firming up these projects in the near future.

Birla Power Solutions Limited FTZ

The Company was incorporated on 8th December, 2010 in Hamriyah Free Trade Zone, U.A.E. to undertake the business of General trading. The company has commenced business and for the period 8th December, 2010 to 31st March 2011, the company has achieved a turnover of AED 53,015,566 equivalent to Rs.648.289 Millions and made a net profit of AED 1,949,944. equivalent to Rs.23.247 Millions.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Industry structure and developments

The Company is engaged in the production of Portable Gensets, Multi Purpose Engines, Pump sets, Sprayers, Inverters, Power Tillers and Wind Energy. While the diesel Gen sets are popular among rural/industrial consumers, urban consumers prefer petrol/kerosene based Portable Gensets and Inverters. In the recent years Inverter because of its advantages of easy, automatic, noise less operation and relatively low running cost is cutting sales of petrol/kerosene based portable Gen sets. Portable Gen sets industry is also facing stiff competition from cheaper Chinese products. Multi Purpose Engines manufactured by the Company are useful particularly to small / medium scale farmers having small land holdings. The products are extremely compact, light weight, portable and efficient and are becoming popular in the farming community because of their reliability, low maintenance and low running costs. There are number of branded/unbranded players of Electrical appliances having cut throat competition among themselves. Despite cheaper cost of production, Wind Energy is not very much popular in the Country and the industry is passing through initial years of its evolution.

CONTINGENT LIABILITIES NOT PROVIDED FOR:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)
Disputed Sales Tax liabilities	102.182	108.816
Claims against the Company not acknowledged as debts	16.458	16.458
Total NOTE: The Company has contested the above demands and claims at various levels. Future cash outflows in respect of these are determinable only upon judgments/decisions at various forums.	118.640	125.274

FIXED ASSETS:

· Freehold Land

· Building

· Leasehold Land

· Plant and Machinery

· Furniture and Fixtures

· Office Equipments

· Vehicles

WEBSITE DETAILS:

BUSINESS DESCRIPTION:

Subject is an India-based company. The Company is engaged in the manufacturing of diesel generators sets, portable generator sets inverters, pumps, multipurpose engines and power tillers. The Company is also engaged in is engaged in the production of portable gensets, higher kilovolt-ampere (KVA) generators, multipurpose engines, pump sets, sprayers, inverters, power tillers and wind energy. In addition to it the Company is engaged in trading of gen sets and electrical items. The Company operates in three business segments: power and allied products, electrical appliances and others. The power and allied products segment is engaged in the manufacturing of portable generators, engines, pumps, inverters and trading of allied products. The electrical appliances segment includes trading of electrical appliances and miscellaneous components. The others segment include the wind mill energy generation. For the six months ended 30 September 2010, Subject revenues decreased 8% to RS1.18B. Net income increased 30% to RS35.1M. Revenues reflect a decrease in income Electrical Appliances segment and lower income from Power and allied products segment. Net income was offset the presence of compensation received on cancellation of a property agreement. The Company is engaged in the manufacturing of diesel generators sets.

PRESS RELEASES:

BSE MAKES CHANGES IN MID-CAP, SMALL-CAP INDICES

29 October 2011

Mumbai, October 30 2011 (PTI) -- The BSE today announced changes in two indices - BSE Mid-cap and Small-cap, which will be effective from October 10. A total of nine scrips have been included in BSE Mid-cap index replacing 16 outgoing stocks, while 39 scrips will replace 41 shares on the small-cap index, a BSE release said. Some of the major firms joining the mid-cap index include --Bajaj Corp, Eros International Media, Lanco Infratech and Jaypee Infratech.

Companies including Bombay Dyeing and Mfg Company Limited, GTL Infrastructure, GTL Limited, Spicejet and Petronet LNG have been excluded from the BSE Mid-cap index. Dunlop India, Hindustan Organic Chemicals, Kirloskar Electric Company and Birla Power Solutions have been excluded from the BSE Small-cap index. In the small-cap index, the new firms included IVRCL, Mahindra Lifespace Developers, Simplex Infrastructure, SRS, Usha Martin and Vardhman Textiles are some of the entities included in the index.

CARE ASSIGNS 'BB' RATING TO LONG-TERM BANK FACILITIES OF BIRLA POWER SOLUTIONS

27 September 2011

India, September 27 -- Credit rating agency, CARE has assigned 'BB' rating to the long-term bank facilities of Birla Power Solutions (BPSL) for Rs 400.000 Millions. The agency has also assigned 'A4' rating to the short-term bank facilities of the company amounting Rs 100.000 Millions. The ratings are constrained by the weak financial profile marked by stagnant growth in the business of BPSL operating in a highly competitive industry coupled with low profitability margins due to high proportion of the trading income and volatility in the raw material prices. Going forward, the ability of the company to scale up its operations, improve its profitability along with the working-capital prudence and maintenance of the gearing ratios will be the key rating sensitivities. Birla Power Solutions is part of the diversified Yash Birla group. BPSL is engaged in the manufacturing of Gensets, pumpsets, multipurpose engines and its application products such as Sprayers, Vibrators and Lawn Mowers etc.

ICRA ASSIGNS 'SP 4A' GRADING TO BIRLA POWER SOLUTIONS

22 September 2011

India, September 22 -- Credit rating agency, ICRA has assigned 'SP 4A' grading to Birla Power Solutions (BPSL), which indicates 'Weak' Performance Capability and 'High' Financial Strength of the channel partner to undertake off-grid solar projects. The grading is valid for a period of one year from August 05, 2011 after which it will be kept under surveillance. Significant experience in power solutions business; first company to manufacture and market portable generators in India and Comfortable capital structure with gearing of 0.23 times as on March 31, 2011 (based on provisional financials) provides financial flexibility remained the Grading Drivers. Birla Power Solutions is a Yash Birla Group Company established in April1984 in collaboration with globally renowned Yamaha Motor Co. The company is presently producing a wide range of generators catering to the power requirements of 500W to 40KW capable of being run on various feedstock’s like kerosene, petrol, diesel, LPG, CNG, and biogas.

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.49.07
UK Pound	1	Rs.77.19
Euro	1	Rs.65.57

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

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

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

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.