MIRA INFORM REPORT

Report Date :

15.03.2012

IDENTIFICATION DETAILS

Name :	TECHNICAL ASSOCIATES LIMITED (w.e.f. 25.09.2002)
Formerly Known As :	T. A. TRANSFORMERS LIMITED
Registered Office :	Triveni House No.1, Nawal Kishore Road, Hazratganj, Lucknow – 226001, Uttar Pradesh, India
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.01.1988
Com. Reg. No.:	20-007884
Capital Investment / Paid-up Capital :	Rs.30.987 Millions
CIN No.: [Company Identification No.]	L31300UP1988PLC007884
TAN No.: [Tax Deduction & Collection Account No.]	LKNT02662C
PAN No.: [Permanent Account No.]	AABCT7365F
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Power and Distribution Transformers.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 4300000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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 :	Triveni House No.1, Nawal Kishore Road, Hazratganj, Lucknow – 226001, Uttar Pradesh, India
Tel. No.:	91-522-2721382
Fax No.:	91-522-2721381
E-Mail :	office@techasso.com deeptimca21@rediffmail.com aka@techasso.com legal@vfl.co.in
Website :	http://www.techasso.com
Head Office/ Factory :	8th km, Faizabad Road, Ismailganj, Lucknow – 226016, Uttar Pradesh, India
Tel. No.:	91-522-4053600
Fax No.:	91-522-4053601/ 2721381
E-Mail :	contact@techasso.com

DIRECTORS

(AS ON 31.03.2011)

Name :

Mr. Vishnu Agarwal

Designation :

Managing Director

Address :

1, Kishna Colony Faizabad Road, Lucknow – 226006, Uttar Pradesh, India

Date of Birth/Age :

19.11.1944

Date of Appointment :

01.08.1996

DIN No.:

00590634

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74899DL1990PLC041401	TECHNICAL ASSOCIATES INFRATECH LIMITED	Director	06-09-90	06-09-90	Active	NO
2	U65993UP1992PTC014587	VIBHU ENTERPRISES PRIVATE LIMITED	Director	28-07-92	28-07-92	Active	NO
3	L45208UP1984PLC006925	TECHNICAL ASSOCIATES INFRAPOWER LIMITED	Managing director	01-10-92	01-10-92	Active	NO
4	U45202UP1989PLC010606	T A TRANSFORMERS LIMITED	Director	01-02-96	01-02-96	Active	NO
5	L31300UP1988PLC007884	TECHNICAL ASSOCIATES LIMITED	Managing director	01-05-08	01-08-96	Active	NO
6	U30007DL1999PTC098866	PROLOGIX SOFTWARE SOLUTIONS PRIVATE LIMITED	Director	04-04-99	04-04-99	Active	NO
7	U65910UP2002PTC026637	AGARWAL FIN-LEASE AND INVESTMENT PRIVATE LIMITED	Director	03-05-02	03-05-02	Active	NO
8	U99999MH1970GAP014629	INDIAN ELECTRICAL AND ELECTRONICS MANUFACFTURERS ASSOCIATION	Managing director	04-09-06	04-09-06	Active	NO
9	U65910UP2002PTC026638	VINAMRA FIN-LEASE AND INVESTMENT PRIVATE LIMITED	Director	29-09-09	04-02-09	Active	NO
10	U40300UP2010PTC041611	TA GREENTECH PRIVATE LIMITED	Director	06-08-10	06-08-10	Active	NO
11	U45400UP2012PTC049078	GANPATI INFRAESTATE PRIVATE LIMITED	Director	27-02-12	27-02-12	Active	NO
12	U45400UP2012PTC049105	VIBHUTI INFRAPROJECTS PRIVATE LIMITED	Director	28-02-12	28-02-12	Active	NO
13	U45400UP2012PTC049115	ADIDEV INFRADEVELOPERS PRIVATE LIMITED	Director	29-02-12	29-02-12	Active	NO
14	U45400UP2012PTC049173	MAHADEV INFRADEVELOPERS PRIVATE LIMITED	Director	02-03-12	02-03-12	Active	NO

Name :

Ms. Palanivel Mudaliar

Designation :

Director

Address :

65, Church Road, Vishnupur, Aliganj, Lucknow – 226021, Uttar Pradesh, India

Date of Birth/Age :

10.01.1948

Date of Appointment :

30.09.2010

DIN No.:

02348153

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	L31300UP1988PLC007884	TECHNICAL ASSOCIATES LIMITED	Director	30-09-10	02-12-09	Active	NO
2	U65929DL1996PTC079905	VINDHYANCHAL FINLEASE PRIVATE LIMITED	Nominee director	14-08-10	14-08-10	Active	NO

Name :

Mrs. Saroj Agarwal

Designation :

Whole Time Director

Address :

1, Kishna colony Faizabad Road, Lucknow – 226006, Uttar Pradesh, India

Date of Birth/Age :

08.08.1947

Date of Appointment :

28.02.1996

DIN No.:

00590796

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U65993UP1992PTC014631	CHINHAT LAND AND FINANCE PRIVATE LIMITED	Director	10-08-92	10-08-92	Active	NO
2	U45202UP1989PLC010606	T A TRANSFORMERS LIMITED	Director	01-02-96	01-02-96	Active	NO
3	L31300UP1988PLC007884	TECHNICAL ASSOCIATES LIMITED	Whole-time director	01-01-08	28-02-96	Active	NO
4	U74899DL1990PLC041401	TECHNICAL ASSOCIATES INFRATECH LIMITED	Director	20-05-96	20-05-96	Active	NO
5	U65910UP2002PTC026637	AGARWAL FIN-LEASE AND INVESTMENT PRIVATE LIMITED	Director	03-05-02	03-05-02	Active	NO
6	U45400UP2012PTC049078	GANPATI INFRAESTATE PRIVATE LIMITED	Director	27-02-12	27-02-12	Active	NO
7	U45400UP2012PTC049132	SADGURU KRIPA TRADERS PRIVATE LIMITED	Director	29-02-12	29-02-12	Active	NO

Name :

Mr. Vinamra Agaral

Designation :

Whole Time Director

Address :

1, Kishna Colony Faizabad Road, Lucknow – 226006, Uttar Pradesh, India

Date of Birth/Age :

23.07.1978

Date of Appointment :

01.11.2007

DIN No.:

00590859

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	L45208UP1984PLC006925	TECHNICAL ASSOCIATES INFRAPOWER LIMITED	Director	23-03-99	23-03-99	Active	NO
2	U65910UP2002PTC026638	VINAMRA FIN-LEASE AND INVESTMENT PRIVATE LIMITED	Director	03-05-02	03-05-02	Active	NO
3	U65910UP2002PTC026637	AGARWAL FIN-LEASE AND INVESTMENT PRIVATE LIMITED	Director	03-05-02	03-05-02	Active	NO
4	U65993UP1992PTC014631	CHINHAT LAND AND FINANCE PRIVATE LIMITED	Director	24-03-03	24-03-03	Active	NO
5	U45202UP1989PLC010606	T A TRANSFORMERS LIMITED	Director	16-10-03	16-10-03	Active	NO
6	L31300UP1988PLC007884	TECHNICAL ASSOCIATES LIMITED	Whole-time director	01-01-08	01-11-07	Active	NO
7	U51109WB1994PTC066582	MARWARI TRADERS PRIVATE LIMITED	Additional director	09-02-12	09-02-12	Active	NO
8	U45400UP2012PTC049105	VIBHUTI INFRAPROJECTS PRIVATE LIMITED	Director	28-02-12	28-02-12	Active	NO
9	U45400UP2012PTC049115	ADIDEV INFRADEVELOPERS PRIVATE LIMITED	Director	29-02-12	29-02-12	Active	NO
10	U45400UP2012PTC049132	SADGURU KRIPA TRADERS PRIVATE LIMITED	Director	29-02-12	29-02-12	Active	NO
11	U45400UP2012PTC049153	CHIDANAND ENTERPRISES PRIVATE LIMITED	Director	01-03-12	01-03-12	Active	NO

Name :

Mr. Narendra Kumar

Designation :

Director

Address :

1/73, Vishwas Khand – I, Gomti Nagar, Lucknow – 226010, Uttar Pradesh, India

Date of Birth/Age :

10.09.1943

Date of Appointment :

01.07.2008

DIN No.:

00091645

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	L31300UP1988PLC007884	TECHNICAL ASSOCIATES LIMITED	Director	30-09-09	01-07-08	Active	NO

KEY EXECUTIVES

Name :	Ms. Deepti Agarwal Bindal
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Category of Shareholders	No. of Shares	Percentage of Holding
Agarwal Fin-Lease and Investment Private Limited	419675	13.55
Vinamra Fin-Lease and Investment Private Limited	344355	11.12
Chinhat Land and Fin Company Private Limited	326818	10.55
Vibhu Enterprises Private Limited	323875	10.46
Technical Associates Industries Limited	50000	1.62
Ortem Securities Limited	44000	1.43
Artex Merchants Private Limited	4000	0.14
Primstar Credit and Extim Private Limited	4000	0.14
Lambedar Leasing and Trexim Private Limited	2000	0.06
Woolwarth Syntax Private Limited	2000	0.06
Newview Holding Private Limited	2000	0.06
Northeast Finvest Company Private Limited	2000	0.06
Neelam Securities Private Limited	1000	0.03
Esaer (India) Private Limited	100	0.00
Vishnu Agarwal	103430	3.34
V. Agarwal and Others (HUF)	63703	2.06
Saroj Agarwal	131370	4.24
Vibhu Agarwal	719830	23.22
Vinamra Agarwal	470249	15.18
P. K. Agarwal and Sons HUF	6850	0.22
S. Krishna	4110	0.11
Himanshu Agarwal	3000	0.08
Mulchand Rathi	2500	0.06
D. P. Agarwal	2500	0.06
Chandra Prabha Jain	2250	0.07
K.C. Bankeraika	20580	0.08
Pratima Agarwal	2000	0.07

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	49.28
Other top fifty shareholders	48.04
Others	2.68
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Power and Distribution Transformers.

Products :

Item Code No (ITC Code)	Product Description
8504	Power and Distribution Transformers

GENERAL INFORMATION

Customers :

· Hubli Electricity Supply Company, (HESCOM)

· National Thermal Power Corporation, (NTPC)

· Reliance Energy Limited, (REL)

· Karnataka Power Transmission Company Limited, (KPTCL)

· Pashimanchal Vidyut Vitran Nigam Limited, (PVVNL)

· Dakshinanchal Vidyut Vitran Nigam Limited, (DVVNL)

· Rajasthan Rajya Vidyut Prasaran Nigam Limited, (RRVPNL)

· Himachal Pradesh State Electricity Board (HPSEB)

· Haryana Vidyut Prasaran Nigam Limited, (HVPNL)

· M. P. Power Transmission Company Limited, MPPTCL)

· Uttar Pradesh Power Corporation Limited, (UPPCL)

· Madhyanchal Vidyut Vitran Nigam Limited, Lucknow (MVVNL)

· Uttaranchal Power Corporation Limited, (UPCL)

· West Bengal State Electricity Board (WBSEB)

· North Delhi Power Limited, (NDPL) 

· Ajmer Vidyut Vitran Nigam Limited, (AVVNL)

· Jaipur Vidyut Vitran Nigam Limited, (JVVNL) 

· Poorvanchal Vidyut Vitran Nigam Limited, (PVVNL)

· Gridco Limited (A Govt. of Orrisa Undertaking)

· Madhya Pradesh Poorva Kshetra   Vidyut Vitran Company Limited

No. of Employees :

Not Available

Bankers :

· Bank of Baroda

4/A, Park Road, Narhi Branch, Lucknow – 226001, Uttar Pradesh, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee Term Loans Banks Secured	57.575	41.776
Working Capital Loans Secured	161.333	75.610
Total	218.908	117.386

Banking Relations :	--
Auditors :
Name :	P. Tandon and Company Chartered Accountant
Address :	Shanti Nikunj, 15 New Civil Lines, Near Ram Vatika, Gate No. 3, Bareilly – 243001, Uttar Pradesh, India
Tel. No.:	91-581-2510022/2511237
PAN No.:	AAFFP7729Q
Associates :	· Agarwal Fin-lease and Investment Private Limited · Chinhat Land and Finance Private Limited · Vibhu Enterprises Private limited · Vinamra Fin-Lease and Investment Private Limited

CAPITAL STRUCTURE

(AS ON 30.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3098653	Equity Shares	Rs.10/- each	Rs.30.987 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		30.987	30.987	30.987
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1048.318	778.220	490.914
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1079.305	809.207	521.901
LOAN FUNDS
1] Secured Loans		218.908	117.386	32.090
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		218.908	117.386	32.090
DEFERRED TAX LIABILITIES		0.000	0.000	1.594
TOTAL		1298.213	926.593	555.585
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		517.676	509.833	316.588
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.180	0.000	0.000
DEFERREX TAX ASSETS		26.115	14.594	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	469.661	27.470	39.330
	Sundry Debtors	281.034	282.258	315.905
	Cash & Bank Balances	429.074	421.114	100.537
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	166.915	104.124	90.555
Total Current Assets		1346.684	834.966	546.327
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	592.509	380.115	242.495
	Other Current Liabilities	(0.067)	52.685	64.835
	Provisions	0.000	0.000	0.000
Total Current Liabilities		592.442	432.800	307.330
Net Current Assets		754.242	402.166	238.997
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1298.213	926.593	555.585

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1942.436	1953.750	2265.523
		Other Income	31.435	18.889	5.066
		TOTAL (A)	1973.871	1972.639	2270.589
Less	EXPENSES
		Consumption Materials changes Inventories	1353.063	1413.418
		Manufacturing Service Cost	29.877	23.609
		Employees Related expenses	59.148	47.969	1993.713
		Administrative, selling and Other Expenses	56.933	51.796
		Exceptional Items	93.843	86.068
		TOTAL (B)	1592.864	1622.860	1993.713
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		381.007	349.779	276.876
Less	FINANCIAL EXPENSES (D)		17.811	10.451	12.139
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		363.196	339.328	264.737
Less/ Add	DEPRECIATION/ AMORTISATION (F)		49.957	11.036	6.971
	PROFIT BEFORE TAX (E-F) (G)		313.239	328.292	257.766
Less	TAX (H)		41.996	50.059	89.000
	PROFIT AFTER TAX (G-H) (I)		271.243	278.233	168.766
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3.040	0.734	1.157
Less	Fringe Benefit Tax		--	--	0.377
Less/ Add	Excess Provision Written Back		0.041	2.181	--
Add	Deferred Tax Liabilities		11.521	16.188	0.484
Less	APPROPRIATIONS
		Transfer to General Reserve	260.000	285.000	160.000
		Proposed Dividend	9.296	9.296	9.296
		Tax on Dividend	3.329	--	--
	BALANCE CARRIED TO THE B/S		13.138	3.040	0.734
	Earnings Per Share (Rs.)		87.54	--	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	13.74	14.10	7.43
Net Profit Margin (PBT/Sales)	(%)	16.13	16.80	11.38
Return on Total Assets (PBT/Total Assets}	(%)	16.80	24.41	29.87
Return on Investment (ROI) (PBT/Networth)		0.29	0.41	0.49
Debt Equity Ratio (Total Liability/Networth)		0.75	0.68	0.65
Current Ratio (Current Asset/Current Liability)		2.27	1.93	1.78

LOCAL AGENCY FURTHER INFORMATION

NOTE:

The registered Office of the company have been shifted from 8^th K.M. Faizabad Raod, Krishna Nagar, Lucknow – 226016, Uttar Pradesh, India to the present w.e.f 14.11.2009.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENTS

Subject is one of the few Indian transformer manufactures who have successfully grown into an established, recognized Power Transformer manufacturer on the back of our investment in design, engineering and knowledge building.

Company has successfully supplied more than 500,000 (approx. 40,000 MVA) transformers which are in active service across India, Bangladesh and Nepal.

Company was one of the transformer manufacturers in India to get comprehensive ISO 9000 certification for integrated design, manufacturing and testing processes for transformers, including processing of raw materials.

They have been able to successfully expand their customer offerings – and diversify into Turnkey T and D Projects for complete design, engineering, procurement, construction, erection and commissioning for substations from 33kV upto 110 kV and transmission and distribution lines amounting to almost 600 km. in 2008 alone.

They are one of the first transformer manufacturers in the country to have set up integrated facilities for processing of CRGO core, slitting, cutting and annealing, conductor manufacturing (drawing, annealing and paper covering), transformer Oil processing, tank fabrication, core assembly, winding, assembling and tanking. This allows us to have a stronger control on what goes inside the transformer and reduces dependence on external suppliers, thereby ensuring delivery timelines.

The business revenues have grown multifold – almost 20 times from approx. Rs.140 million 2002-03, to almost Rs.2,500 million in 2008-09.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:

Subject has been manufacturing Power and Distribution transformers for over 36 years. manufactures a broad range of oil filled transformers for meeting diverse needs of electricity grids – from distribution transformers in 11 and 33 kV upto High Voltage and Extra High Voltage Transformers upto 220 kV all built as per IEC 6076, and rigorously tested internally and from globally reputed 3rd party testing houses like CPRI. Company’s product range also includes aluminium conductors for distribution networks, Power and Control Cables and Intelligent Power Distribution solutions for Rural Load Management System (RLMS) applications.

Intelligent Power Distribution System

• Intelligent solutions to optimize electricity delivery in rural areas

• Surmount Supply-Demand gap of power to ensure rural households/ commercial establishments get at least 18 hours of electricity every day even at current generation levels

• Inexpensive – builds intelligence at Distribution Transformer – higher sustainability than separate feeders

Technical Road Load Management Solution:

• Builds Intelligence at the Distribution Transformer (DT)

• Allows loads to be split up into RDL and IP – availability of power to RDL and IP can be controlled remotely through DT without physically manipulating feeders

• Can be used to stagger availability of power to IPs on single feeder

• When used on multiple feeders, allows RDLs to get maximum available power and IPs to get power as per predetermined schedule

• Allows metering/ remote monitoring/ management at every DT – helps data collection and identification of revenue leaders/ losers

• Convenient – each RLM unit designed for physical mounting on DT – saves cost of additional poles/ supporting frames/ etc.

• Inexpensive – requires minimal modification of existing distribution system

• Immediate delivery – can start providing 18-24 hours of electricity to rural domestic loads immediately post installation

• Rugged – designed for outdoor usage with capacity to withstand extreme weathers

OUTLOOK:

Establishment of New Factory at Sitarganj, Uttarakhanj.

The manufacturing plant at Sitarganj is spread out over 12.5 acres and is fully equipped to Manufacture EHV Power transformers up to the 400 kV voltage class. The manufacturing sheds occupy a total covered area of approx. 23000 sq. mtrs ranging from 4 mtrs. To 24 meters in height, and spans of 16 mtrs to 24 mtrs. The plant has been designed for optimal material and flow, and Integrated manufacturing operations with separate bays planned for:

• Single phase and Three phase 11 kV Distribution Transformers

• Three phase 33 kV Distribution Transformers

• Three phase 66 and 132 kV Power Transformers

• Single phase and Three phase 220 and 400 kV Power Transformers Coil Winding

• Insulation processing

• Core Slitting, Annealing and Cutting

• Mild Steel Fabrication

• Impulse Testing Laboratory

FORM 8:

Corporate identity number of the company	L31300UP1988PLC007884
Name of the company	TECHNICAL ASSOCIATES LIMITED
Address of the registered office or of the principal place of business in India of the company	Triveni House No.1, Nawal Kishore Road, Hazratganj, Lucknow – 22661, Uttar Pradesh, India office@techasso.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90275947
Type of charge	Immovable Property Book Debts Movable Property Others: Stock, Plant and Machinery
Particular of charge holder	Bank of Baroda – 4/A, Park Road, Narhi Branch, Lucknow – 226001, Uttar Pradesh, India e-mail id: narhi@bankofbaroda.com
Nature of instrument creating charge	D.P.NOTE Supplemental Composite Agreement of Hypothecation of Goods, Book Debts, Movable Machinery and Vehicles Supplemental Memorandum of Entry D. P. Note ,This D. P. Note is in Addition To D.P. Note Dated 30.06.2005, 25.05.2007 and 12.02.2009 For Rs.50.000 Millions, Rs.100.000 Millions and Rs.100.000 Millions Executed By Technical Associates Limited Poa In Respect of Book Debts Facility
Date of instrument Creating the charge	09.04.2010
Amount secured by the charge	Rs.1900.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interest – 1.50% Below BPLR Per Annum Terms of Repayment – Terms of Repayment as per the composite agreement. Margin – 25% On Stock 25% On Book Debts Extent and operation of the charge – Composite Agreement Dated 24.07.04 CC Limit Rs.19.000 Millions; Bills Rediscounting IDBI/SIDBI Scheme Rs.79.400 Millions; Rs.10.000 Millions; BG Rs. 49.500 Millions
Particulars of the property charged	Exclusive first charge on Plant and Machinery of the Company. Equitable mortgage of Company's land and building at Sitarganj, (Uttaranchal) valued at Rs.140.000 Millions (As per project report). Extension of equitable mortgage of properties situated at Plot No. 120,121 and 124(16395.44 sq. mt ) at Vijaypur, Ismailganj LKO and at Umarpur, Sandauli, District. Barabanki. Equitable mortgage of Company's factory land and building situated at Industrial Plot No. 7-B Phase -I having area of 50310.90 sq mt situated at Eldeco Sideul Industrial Park Sitarganj Uttrakhand. Personal Guarantee of Promoters Directors i.e. Mr. Vishnu Agarwal, Mrs. Saroj Agarwal and Vinamra Agarwal having aggregate net worth of Rs.36.900 millions as on 31.03.2009 Extension of charges on Hypothecation of goods, book debts,other plant and machinery for entire limit.
Date of instrument modifying the charge	08.09.2009
Particulars of the present modification	CC (Hypothecation of Stock and Book Debts) – 300.000 Millions (Inc. Frm 250.000 Millions). Tl-(1)- 41.400 millions Reduced From Rs.150.00 Millions, Tl-(2)-108.600 Millions (Fresh), BG-850.000 Millions (INC FRM rs.750.000 Millions). Inland/Foreign LC – 600.000 Millions (No Change). Roi-1.50% Below BPLR With Monthly Rests. Repayment of Tl-1. Will Start From May 2010 and end in November 2012, and Tl-2. Will start from May 2011 and end in November 2013. Changes in security and other terms and conditions.

FIXED ASSETS

· Land

· Factory Building

· Plant and Machinery

· Computer

· Office Equipments

· Furniture and Fixture

· Vehicle

WEBSITE DETAILS:

HISTORY

Subject – An ISO 9001:2000 Company is known to be one of India’s oldest, reputed manufacturers of Power and Distribution Transformers. From humble beginnings in 1967 as a partnership firm; almost four decades back, company has today grown into a nationally respected and known Power Transformer manufacturing company.

Journey of Progress and Achievements:

1969: First order received for 5kVA, 11/0.250 kV Single Phase transformer from Uttar Pradesh State Electricity Board (now Uttar Pradesh Power Corporation Limited)

1970: Regular production commences of pole and pad mounted transformers of different ratings up to 1000 kVA, 11/0.433 kV.

1973: Subject registered as a company incorporated under the Indian Companies Act, 1956.

1973: Production commences at a new manufacturing facility at Ismailganj, Lucknow for Power and Distribution transformers. Ismailganj continues to be company’s head office and flagship plant for 132 kV Power Transformers.

1974: A sister concern - Sri Ram Industries set up to manufacture Transmission Line Towers. These were designed, tested, fabricated, and galvanized for 132 kV Transmission Lines. Microwave towers up to a height of 100 Mtrs. supplied for Microwave link connecting east UP to west UP.

1979: Company sets up the first Distribution transformer manufacturing plant in the state of Punjab in District Sangrur.

1991: Company gets ISO 9000 certification for assembly of transformers and processing of raw materials including core laminations, slitting and cutting, conductor drawing, paper covering, transformer oil base stock processing, tank fabrication and insulation.

2001: Company becomes a regular manufacturer of 40.0 MVA, 132 kV power transformers.

2006: Company manufacturing activities certified for compliance with ISO 9001:2000 standards by BSI, UK.

2006: Turnkey Power Projects division set up for executing Transmission and Distribution EPC projects.

2007: Company commences execution of several projects for Engineering, Procurement, Construction, Erection and Commissioning of Switchyards for 33, 66 and 110 kV switchyards and Lines from 11 kV up to 132 kV all over the country.

2007: Work commences on setting up a state of the art manufacturing plant in Sitarganj, Uttarakhand for manufacture of Extra High Voltage Power transformers up to 400 kV class.

2008: State of the art plant commissioned at Sitarganj (Uttarakhand). It will enlarge TAL’s transformer product portfolio to include EHV Transformers up to 400 kV; a quantum leap in manufacturing and technology.

Company has successfully supplied more than 500,000 (approx. 40,000 MVA) transformers which are in active service across India, Bangladesh and Nepal, helping bring light and warmth to millions of families from the remotest corners of the subcontinent to the heights of the Himalayas.

Through consistent performance spanning several decades, Company Transformers have built a strong reputation for quality, ruggedness and reliability – with a capacity to withstand the vagaries of T&D networks and minimizing the total cost of ownership for customers.

The company is also looking for international collaborations and strategic partners for its new initiatives as part of growth targets over the coming decade

COMPANY PROFILE:

Subject is one of India's oldest manufacturers of Power Transformers. Established in 1967 in Lucknow, Uttar Pradesh, company originally manufactured Distribution Transformers for 11 kV distribution networks. Today, our scope of business activities has expanded vastly to include:

· Manufacturing of Power and Distribution Transformers up to 132 kV

· Transmission and Distribution Engineering, Procurement and Commissioning Projects on Turnkey basis

· Renewable Energy based power generation

Through a greenfield plant in Sitarganj, Uttarakhand company’s transformer manufacturing capabilities are being upgraded significantly to include design, manufacture and testing of EHV Power Transformers upto 400 kV. company has successfully supplied more than 500,000 (approx. 40,000 MVA) transformers which are in active service across India, Bangladesh and Nepal. Subject is committed to continuous learning, product and process improvement, dedication to quality and fostering innovativeness. These are the core strengths of the company, which will allow company to deliver newer products and diversify into newer areas which have increasing relevance to the needs of the Energy sector. After more than 40 years in business, company is ready to build on it's vast storehouse of experience, expertise and excellence to play a greater role today in the development of Energy infrastructure in India, and beyond.

Manufacturing Plants Transformers):

· Ismailganj, Lucknow, Uttar Pradesh (Power Transformers upto 132 kV)

· Sitarganj, Uttarakhand (EHV Power Transformers upto 400 kV)

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.49.85
UK Pound	1	Rs.77.97
Euro	1	Rs.65.62

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--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	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		52

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.