MIRA INFORM REPORT

Report Date :

23.01.2012

IDENTIFICATION DETAILS

Name :	PHOTON ENERGY SYSTEMS LIMITED
Registered Office :	Plot No.775-K, Road No.45, Jubilee Hills, Hyderabad – 500 033, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	08.05.1995
Com. Reg. No.:	01-36134
Capital Investment / Paid-up Capital :	Rs.19.283 Millions
CIN No.: [Company Identification No.]	U32103AP1995PLC036134
TAN No.: [Tax Deduction & Collection Account No.]	HYDP02168F
PAN No.: [Permanent Account No.]	AABCP9113B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of SPV Lanterns, SPV Module, IOWP, SPV Street Lighting Systems.
No. of Employees :	280 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 792000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. 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/ Corporate Office :	Plot No. 775-K, Road No. 45, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh, India
Tel. No.:	91- 40-66661337/8/9/23331337/8/9
Fax No.:	91- 40-66661340
E-Mail :	contact@photonsolar.com info@photonsolar.com finance@photonsolar.in accounts@photonsolar.in
Website :	http://www.photonsolar.com
Area :	4000 sq. ft.
Location :	Rented
Head Office :	Unit 19, Mount View Enclave, Road no 12, Banjara Hills, Hyderabad - 500 034, Andhra Pradesh, India
Tel. No.:	91-40-23331337/ 1338/ 1339
Fax No.:	91-40-23331340
E-Mail :	Solar Water Heating System: swhs@photonsolar.in Solar PV Modules: solarpv@photonsolar.in Jobs : careers@photonsolar.in Material Suppliers : purchase@photonsolar.in General Queries: contact@photonsolar.in
Corporate Office :	H. No. 8-2-686/DB/19, Mount View Enclave, Road No.12, Banjara Hills, Hyderabad – 500034, India
Tel. No.:	91-40-23331337/38/39
Fax No.:	91-40-23331340
Area :	3000sq.fts
Location :	Rented
Factory :	Plot No. 46, Anrich Industrial Estate, IDA, Bollarum, Medak District – 502 325, Andhra Pradesh, India
Tel. No.:	91-8458-279512/ 281/ 026
Fax No.:	91-8458-279842
Area :	45000 sq. ft.
Location :	Owned
Branch Office :	Located at: Bangalore No.468, 4^th Main, 2^nd Stage, RMV Extension, Bangalore – 560094, Karnataka, India Pune #16-A, Pune Trade Centre Khandve Nagar, Pune – Nagar Road, Wagholi, Pune – 412207 Coimbatore #172, Mettupalayam Road, Nilgiri Fertilizers Compound, Coimbatore - 641043 New Delhi #13, Anshul Towers, Sainik Vihar, Pithampura, New Delhi - 110034
Overseas Office :	Africa Office Po Box 5245, Halfway House, Midrand, SA. 1685. Tel: +27 82 852 9891 Fax: +27 86 687 3769 Email Id: africa@photonsolar.in Website: www.photonsolar.com

DIRECTORS

As on 19.09.2011

Name :

Mr. Purushotam Reddy Nalamada

Designation :

Chairman and Managing Director

Address :

Plot No. 775-K, Road No. 45, Jubilee Hills, Hyderabad – 500 033, India

Date of Birth/Age :

11.07.1936

Date of Appointment :

18.09.2008

DIN No.:

00036671

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U32103AP1995PLC036134	PHOTON ENERGY SYSTEMS LIMITED	Managing director	01-10-08	08-05-95	-	Active	NO
2	U27109AP1995PTC022137	SML DYETEX AND INDUSTRIES PRIVATE LIMITED	Director	26-06-02	26-06-02	05-02-08	Active	NO
3	L27109AP1985PLC005259	SRI VASAVI INDUSTRIES LIMITED	Director	01-12-02	01-12-02	05-02-08	Active	NO
4	L17116AP1993PLC016428	SARITA SYNTHETICS AND INDUSTRIES LIMITED	Director	01-12-02	01-12-02	05-02-08	Active	NO
5	U40102AP2008PTC061105	PHOTON HYDRO POWER PRIVATE LIMITED	Director	18-09-08	18-09-08	-	Active	NO
6	U40108AP2009PTC064282	PHOTON SOLAR SYSTEMS (INDIA) PRIVATE LIMITED	Director	08-07-09	08-07-09	-	Active	NO
7	U18100AP1994PLC017367	SPS TEXTILES AND INDUSTRIES LIMITED	Director	20-12-10	22-03-10	-	Active	NO
8	U17111TZ1993PLC006729	MYNAH INDUSTRIES LIMITED	Director	30-09-10	15-04-10	25-10-10	Active	NO

Name :

Mr. Nalamada Gautham Kumar

Designation :

Whole Time Director

Address :

Plot No. 775-K, Road No. 45, Jubilee Hills, Hyderabad – 500 033, India

Date of Birth/Age :

05.03.1968

Date of Appointment :

18.09.2008

DIN No.:

01982637

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U32103AP1995PLC036134	PHOTON ENERGY SYSTEMS LIMITED	Whole-time director	01-10-08	27-12-00	-	Active	NO
2	U40102AP2008PTC061105	PHOTON HYDRO POWER PRIVATE LIMITED	Director	18-09-08	18-09-08	-	Active	NO
3	U40108AP2009PTC064282	PHOTON SOLAR SYSTEMS (INDIA) PRIVATE LIMITED	Director	08-07-09	08-07-09	-	Active	NO
4	U40109AP2000PLC035304	SNEHA RENEWABLE ENERGIES LIMITED	Additional director	27-12-10	27-12-10	-	Active	NO
5	U40300AP2010PTC070453	KARUNYA ENERGIES PRIVATE LIMITED	Director	22-02-11	22-02-11	-	Active	NO

Name :

Mr. Vithalbhai C. Bhavsar

Designation :

Director

Address :

304, Yadav Paradise, M. G. Road, Secunderabad – 500 003, Andhra Pradesh, India

Date of Birth/Age :

13.07.1939

Date of Appointment :

01.10.2003

DIN No.:

01982673

Name :

Mr. Chandra Sekhar ReddyKancharla

Designation :

Director

Address :

8-2-293/82/J/111/565/4, Jubilee Hills, Hyderabad – 500 033, India

Date of Birth/Age :

10.03.1955

Date of Appointment :

17.06.2003

DIN No.:

00523801

Name :

Mr. Goran Fajerson

Designation :

Director

Address :

VillaVells Brunnsp Arken 2 25654 Ramlosa Sweden

Date of Birth/Age :

11.09.1943

Date of Appointment :

25.01.2005

DIN No.:

02013975

Name :

Mr. Bhaskar Reddy Pondla

Designation :

Additional Director

Address :

15-21-32/ 3, Balaji Nagar, Kukatpally, Rangareddy – 500 072, Andhra Pradesh, India

Date of Birth/Age :

18.06.1937

Date of Appointment :

24.12.2008

DIN No.:

00910121

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U28932AP1983PLC003958	RASU TOOLS LIMITED	Managing director	21-05-83	21-05-83	-	Active	NO
2	U28932AP1989PLC010410	FINE FORGE LIMITED	Director	05-09-89	05-09-89	29-04-08	Active	NO
3	U24299AP2003PTC041943	K.N. BIOSCIENCES (INDIA) PRIVATE LIMITED	Director	23-10-03	23-10-03	-	Active	NO
4	U32103AP1995PLC036134	PHOTON ENERGY SYSTEMS LIMITED	Additional director	24-12-08	24-12-08	-	Active	NO
5	U92120AP2009PTC066356	K.N. MEDIA PRIVATE LIMITED	Director	18-12-09	18-12-09	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 19.09.2011

Names of Shareholders	No. of Shares
N. Purushotam Reddy	303400
R.D. Reddy	59500
N. Ram Reddy	40000
N. Usha	70000
N. Uttam Kumar Reddy	454900
Gautham Kumar	227500
J. Krishna Deva Rao (HUF)	50000 50000
Venkat Patla	8000
K. Babu	15000
Goran Faierson	50000
Zhang Xue Xiang	20000
Analysis Securities Private Limited, india	380000
The Agricultural Development Commercial Credit and Industrial Investment Company Private Limited, India	168000
Universities Press (India) Private Limited, India	16000
Sangam Book (India) Private Limited, India	16000
TOTAL	1928300

Equity Share Break up (Percentage of Total Equity)

As on 19.09.2011

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	4.00
Bodies corporate	30.00
Directors or relatives of Directors	66.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of SPV Lanterns, SPV Module, IOWP, SPV Street Lighting Systems.

Products :

Products Description	Item Code No.
SPV Module and System Devices	8541.40.11
Solar water Heater and Systems	8419.90.10

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Actual Production
SPV Modules	KWP	10.51
Water Heating Systems and Collctions	Ltrs	750100

GENERAL INFORMATION

No. of Employees :

280 (Approximately)

Bankers :

• Dena Bank, Dundoo Chambers, R. P. Road, Secunderabad – 500003, Andhra Pradesh, India

• ICICI Bank Limited

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Working capital loans banks secured	18.964	15.086
Loans taken for vehicles secured	3.010	1.302
Loans taken for other fixed assets secured	1.515	4.959
Total	23.489	21.347
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Other debt unsecured	40.969	14.470
Total	40.969	14.470

Banking Relations :	--
Auditors :
Name :	P. Venkateswar Rao and Associates Chartered Accountants
Address :	6-3-850/ 1, 2^ND Floor, Sirisha Plaza, Ameerpet, Hyderabad - 500 016, Andhra Pradesh, India
Tel. No.:	91-40-23414313/ 39104588
Mobile No.:	91-9989024357
E-Mail :	venkateshwarrao_pappu@rediffmail.com
PAN.:	ACJPP6287B
Sister Concern:	Photon Solar Systems India Private Limited Address: Plot No.775-K Road No.45 Jubilee Hills, Hyderabad-500 033 Photon Hydro Private Limited Address: Plot No.775-K Road No.45 Jubilee Hills, Hyderabad-500 033

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs.25.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1928300	Equity Shares	Rs.10/- each	Rs.19.283 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		19.283	17.283	16.873
2] Share Application Money		0.118	0.118	14.449
3] Reserves & Surplus		178.564	156.137	139.641
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		197.965	173.538	170.963
LOAN FUNDS
1] Secured Loans		23.489	21.347	29.106
2] Unsecured Loans		40.969	14.470	7.579
TOTAL BORROWING		64.458	35.817	36.685
DEFERRED TAX LIABILITIES		23.426	25.172	24.899
Lease Rental Advances		0.715	1.481	2.489
TOTAL		286.564	236.008	234.946
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		96.830	96.589	96.534
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	123.979	82.963	170.671
	Sundry Debtors	437.555	172.959	45.854
	Cash & Bank Balances	32.766	42.341	6.098
	Other Current Assets	0.000	0.000	27.202
	Loans & Advances	15.466	15.957	4.375
Total Current Assets		609.766	314.220	254.200
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	420.032	174.801	57.837
	Other Current Liabilities	0.000	0.000	57.951
	Provisions	0.000	0.000	0.000
Total Current Liabilities		420.032	174.801	115.788
Net Current Assets		189.734	139.419	138.412
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		286.564	236.008	234.946

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1068.958	790.011	1236.727
		Other Income	5.014	3.652	9.703
		TOTAL (A)	1073.972	793.663	1246.430
Less	EXPENSES
		Consumption of materials and Increase/(Decrease) in Stocks	1045.395	659.110	1130.256
		Payment and benefits to employees		25.668	24.099
		Manufacturing, Administrative, Selling and Other Expenses		77.481	68.510
		TOTAL (B)	1045.395	762.259	1222.865
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		28.577	31.404	23.565
Less	FINANCIAL EXPENSES (D)		4.616	4.240	2.944
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		23.961	27.164	20.621
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.677	6.124	6.090
	PROFIT BEFORE TAX (E-F) (G)		17.284	21.040	14.531
Less	TAX (H)		7.104	6.970	2.667
	PROFIT AFTER TAX (G-I) (I)		10.180	14.070	11.864
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		14.070	90.401	80.908
	Deferred Tax liabilities – Assets		NA	0.274	2.371
	BALANCE CARRIED TO THE B/S		NA	14.070	90.401
	IMPORTS
		Raw Materials	66.063	186.786	597.377
		Machinery	0.895	1.666	2.498
	TOTAL IMPORTS		66.958	188.452	599.875
	Earnings Per Share (Rs.)		5.28	7.30	6.15

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.95	1.77	0.95
Net Profit Margin (PBT/Sales)	(%)	1.62	2.66	1.17
Return on Total Assets (PBT/Total Assets}	(%)	2.45	5.12	4.14
Return on Investment (ROI) (PBT/Networth)		0.09	0.12	0.09
Debt Equity Ratio (Total Liability/Networth)		2.46	1.21	0.89
Current Ratio (Current Asset/Current Liability)		1.45	1.80	2.20

LOCAL AGENCY FURTHER INFORMATION

REVIEW OF OPERATIONS

Turnover for the year ended 31st March, 2011 was Rs.1068.958 millions as against Rs.790.091 millions in the previous year. The Net Profit for the year was at Rs.10.180 millions as against Rs.14.070 millions in the previous year. The company is expecting more business in the coming years in domestic market under Jawaharlal Nehru National Solar Mission for deployment of 20000 Mw of grid power and 2000 Mw of off-grid Solar applications and 20 million sq.m. solar thermal collector area and solar lighting for 20 million households by the end of the 13^th Five year Plan in 2022.

RESEARCH AND DEVELOPMENT (R&D) AND TECHNOLOGY ABSORPTION

The company is not engaged in any Research and Development activity. No technology is involved. The company is continuously taking steps to upgrade the process.

CONTINGENT LIABILITIES

Particulars	31.03.2011	31.03.2010
On guarantees given by Bank	110.706	112.618
Letters of Credit opened by bank	1.395	63.714

FIXED ASSETS:

· Land and Site Development

· Factory Buildings

· Plant and Machinery

· Computers

· Vehicles

· Furniture and Fixtures

· Office Equipments

· Electrical Equipments

· SPV Power Plant

· SPV Cell Cutting Machine

· SPV Water Pumps (Lease)

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 exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.50.33
UK Pound	1	Rs.77.97
Euro	1	Rs.65.31

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
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		49

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.