1. Summary Information

Reference #	135-314577-01-020(20120228871)	Country	India
Company Name	AMARA RAJA ELECTRONICS LIMITED	Principal Name 1	Mr. Ramachandra Naidu Galla
Status	Moderate	Principal Name 2	Mr. Jayadev Galla
Our Reference #	171630	Registration #	01-032257
Street Address	Renigunta - Cuddapah Road, Karakambadi, Tirupati – 517520, Andhra Pradesh, India
Established Date	09.08.1999	SIC Code	--
Telephone#	91-877-2265000	Business Style 1	Manufacturer
Fax #	91-877-2285600	Business Style 2	--
Homepage	http://www.amararajaelectronics.com	Product Name 1	UPS
# of employees	Not Available	Product Name 2	Auto Battery Chargers
Paid up capital	Rs.92,050,000/-	Product Name 3	Converters
Shareholders	Directors or relatives of directors - 99.70 % Other top fifty shareholders - 0.30 %	Banking	State Bank of India
Public Limited Corp.	NO	Business Period	13 year
IPO	NO	International Ins.	-
Public Enterprise	NO	Rating	B (34)
Related Company
Relation	Country	Company Name	CEO
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2011		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	274,405,000	Current Liabilities	409,462,000
Inventories	209,944,000	Long-term Liabilities	332,896,000
Fixed Assets	450,577,000	Other Liabilities	25,002,000
Deferred Assets	0,000	Total Liabilities	767,360,000
Invest& other Assets	2,667,000	Retained Earnings	53,183,000
		Net Worth	170,233,000
Total Assets	937,593,000	Total Liab. & Equity	937,593,000
Total Assets (Previous Year)	612,168,000
P/L Statement as of	31.03.2011		(Unit: Indian Rs.)
Sales	1,195,312,000	Net Profit	(3,199,000)
Sales(Previous yr)	769,093,000	Net Profit(Prev.yr)	(6,756,000)

MIRA INFORM REPORT

Report Date :

16.03.2012

IDENTIFICATION DETAILS

Name :	AMARA RAJA ELECTRONICS LIMITED [w.e.f. 23.02.2009]
Formerly Known As :	AMARA RAJA ELECTRONICS PRIVATE LIMITED
Registered Office :	Renigunta - Cuddapah Road, Karakambadi, Tirupati – 517520, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.08.1999
Com. Reg. No.:	01-032257
Capital Investment / Paid-up Capital :	Rs.92.050 Millions
CIN No.: [Company Identification No.]	U31402AP1999PLC032257
IEC No.:	0904006913
TAN No.: [Tax Deduction & Collection Account No.]	HYDA02630F
VAT / TIN :	33811121936
PAN No.: [Permanent Account No.]	AAECA2774J
Legal Form :	A closely held a Public limited liability company.
Line of Business :	Manufacturer of Consumer Power Solution.
No. of Employees :	Not available

RATING & COMMENTS

MIRA’s Rating :

B (34)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 680000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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 :	Renigunta - Cuddapah Road, Karakambadi, Tirupati – 517520, Andhra Pradesh, India
Tel No.:	91-877-2265000
Fax No.:	91-877-2285600 / 2285599
E-Mail :	xenon@amararaja.co.in mjk@amararaja.co.in
Website :	http://www.amararajaelectronics.com
Location :	Owned
Corporate Office :	Riaz Garden, No.12, Kodambakkam, High Road, Chennai – 600034, Tamilnadu, India
Tel. No.:	91-44-28213270 / 42910700 / 42910740
Fax No.:	91-44-28284821
Factory :	Diguvamagham Village and Post, Thavanampalli, Mandalam, Chittor – 517129, District Andhra Pradesh, India
Tel. No.:	91-8573-283636 / 283789
Fax No.:	91-8573-283836

DIRECTORS

As on 25.08.2011

Name :	Mr. Ramachandra Naidu Galla
Designation :	Director
Address :	Renigunta - Cuddapah Road, Karakambadi, Tirupati, Chittoor – 517520, Andhra Pradesh, India
Date of Birth/Age :	01.06.1938
Date of Appointment :	09.08.1999
DIN :	00133761

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	L31402AP1985PLC005305	AMARA RAJA BATTERIES LIMITED	Director	01-09-05	08-07-85	Active	NO
2	U31102AP1984PLC005165	AMARA RAJA POWER SYSTEMS LIMITED	Managing director	19-06-09	08-07-85	Active	NO
3	U29309AP1990PLC011932	MANGAL PRECISION PRODUCTS LIMITED	Director	17-01-94	17-01-94	Active	NO
4	U31402AP1999PLC032257	AMARA RAJA ELECTRONICS LIMITED	Managing director	21-06-10	09-08-99	Active	NO
5	U15134AP2004PLC042852	GALLA FOODS LIMITED	Director	11-03-04	11-03-04	Active	NO
6	U24111AP1988PLC009231	ANDHRA PRADESH GAS POWER CORPORATION LIMITED	Director	29-09-04	29-09-04	Active	NO
7	U74990AP2008PTC057464	AMARON BATTERIES PRIVATE LIMITED	Director	06-02-08	06-02-08	Active	NO
8	U45309AP2008PTC059398	AMARA RAJA INFRA PRIVATE LIMITED	Director	29-05-08	29-05-08	Active	NO
9	U93000AP2009PTC064031	AMARA RAJA INDUSTRIAL SERVICES PRIVATE LIMITED	Director	17-06-09	17-06-09	Active	NO
10	U65993AP2010PTC066519	RNGALLA FAMILY HOLDINGS PRIVATE LIMITED	Director	01-01-10	01-01-10	Active	NO

Name :	Mr. Jayadev Galla
Designation :	Director
Address :	Renigunta - Cuddapah Road, Karakambadi, Tirupati, Chittoor – 517520, Andhra Pradesh, India
Date of Birth/Age :	24.03.1966
Date of Appointment :	07.06.2007
DIN :	00143610

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	U31102AP1984PLC005165	AMARA RAJA POWER SYSTEMS LIMITED	Director	14-08-93	14-08-93	Active	NO
2	L31402AP1985PLC005305	AMARA RAJA BATTERIES LIMITED	Managing director	01-09-10	12-03-94	Active	NO
3	U29309AP1990PLC011932	MANGAL PRECISION PRODUCTS LIMITED	Director	02-12-00	02-12-00	Active	NO
4	U15134AP2004PLC042852	GALLA FOODS LIMITED	Managing director	01-04-09	11-03-04	Active	NO
5	U31402AP1999PLC032257	AMARA RAJA ELECTRONICS LIMITED	Director	07-06-07	07-06-07	Active	NO
6	U74990AP2008PTC057464	AMARON BATTERIES PRIVATE LIMITED	Director	06-02-08	06-02-08	Active	NO
7	U45309AP2008PTC059398	AMARA RAJA INFRA PRIVATE LIMITED	Director	29-05-08	29-05-08	Active	NO
8	U93000AP2009PTC064031	AMARA RAJA INDUSTRIAL SERVICES PRIVATE LIMITED	Director	17-06-09	17-06-09	Active	NO
9	U65993AP2010PTC066519	RNGALLA FAMILY HOLDINGS PRIVATE LIMITED	Director	01-01-10	01-01-10	Active	NO

Name :	Ms. Ramadevi Gourineni
Designation :	Director
Address :	3420, Adam Street, Hinsdale, Illinois – 60523, USA
Date of Birth/Age :	22.09.1964
Date of Appointment :	31.10.2000
DIN :	01347211

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	U31402AP1999PLC032257	AMARA RAJA ELECTRONICS LIMITED	Director	31-10-00	31-10-00	-	Active	NO
2	U29309AP1990PLC011932	MANGAL PRECISION PRODUCTS LIMITED	Director	31-10-02	31-10-02	-	Active	NO
3	U31102AP1984PLC005165	AMARA RAJA POWER SYSTEMS LIMITED	Director	31-10-02	31-10-02	-	Active	NO
4	U15134AP2004PLC042852	GALLA FOODS LIMITED	Director	22-11-04	22-11-04	-	Active	NO
5	L31402AP1985PLC005305	AMARA RAJA BATTERIES LIMITED	Director	22-06-07	22-06-07	14-08-08	Active	NO

Name :	Mr. Rajeev Karwal
Designation :	Director
Address :	1410A, Beverty Park II, DLF Phase II, Gurgaon – 122002, Haryana, India
Date of Birth/Age :	11.04.1963
Date of Appointment :	19.06.2009
DIN :	01234017

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	U74999DL2007PTC160165	MILAGROW BUSINESS AND KNOWLEDGE SOLUTIONS PRIVATE LIMITED	Director	06-03-07	06-03-07	-	Active	NO
2	U74899DL1993PLC055816	ONICRA CREDIT RATING AGENCY OF INDIA LIMITED	Additional director	22-05-07	22-05-07	29-09-07	Active	NO
3	U72900GJ2000PTC038565	DEEPROOT LINUX PRIVATE LIMITED	Director	01-01-08	01-01-08	-	Active	NO
4	U74999KA2007PTC044745	ROBHATAH ROBOTIC SOLUTIONS PRIVATE LIMITED	Director	30-09-08	10-07-08	-	Active	NO
5	U80301MH2009NPL192548	ACADEMY OF INDIAN MARKETING PROFESSIONALS	Director	21-05-09	21-05-09	-	Active	NO
6	U31402AP1999PLC032257	AMARA RAJA ELECTRONICS LIMITED	Director	22-07-09	19-06-09	-	Active	NO

Name :	Mr. Adiseshaiah Chowdary Jakkampudi
Designation :	Additional Director
Address :	A-60, A.P. Text Book Press Colony, Gunrock Enclave, Kharkhana, Hyderabad – 500003, Andhra Pradesh, India
Date of Birth/Age :	18.02.1955
Date of Appointment :	09.03.2010
DIN :	01109704

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	U64203AP1999PTC032338	PORTALPLAYER (INDIA) PRIVATE LIMITED	Managing director	04-10-99	04-10-99	-	Amalgamated	NO
2	U45200AP2001PLC038175	INDU PROJECTS LIMITED	Director	07-12-05	07-12-05	28-09-11	Active	NO
3	U01403AP2008PTC061625	NAGA AGROTECH PRIVATE LIMITED	Director	31-10-08	31-10-08	-	Active	NO
4	U64203AP2006PTC051815	INDYAROCKS MEDIA SERVICES PRIVATE LIMITED	Director	04-01-10	04-01-10	17-03-11	Active	NO
5	U72200AP2006PTC049075	CAVERA SYSTEMS (INDIA) PVT LTD	Director	30-09-10	01-02-10	31-05-11	Active	NO
6	U40108AP2010PTC067338	NEOSOLAR SYSTEMS PRIVATE LIMITED	Director	03-03-10	03-03-10	-	Strike off	NO
7	U31402AP1999PLC032257	AMARA RAJA ELECTRONICS LIMITED	Director	13-09-10	09-03-10	-	Active	NO
8	U80902AP2008PTC062284	TALENTSPRINT EDUCATION SERVICES PRIVATE LIMITED	Whole-time director	10-03-10	10-03-10	-	Active	NO
9	U72200AP2000PTC034927	MONARCH INFO TECH SERVICES PRIVATE LIMITED	Director	01-10-10	01-10-10	-	Active	NO
10	U64200AP2011PTC072283	MOJOSTREET INFOMEDIA SERVICES PRIVATE LIMITED	Director	28-09-11	11-04-11	-	Active	NO
11	U72200AP2011PTC073902	TENXLABS TECHNOLOGIES PRIVATE LIMITED	Director	15-04-11	15-04-11	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.08.2011

Names of Shareholders	No. of Shares
Amara Kumari Galla	1579800
Jayadev Galla	100100
Ramachandra Naidu Galla	8650100
Ramadevi G	100000
Ravindra Naidu	10000
Sudhakar Naidu	5000
W Prabhakar Naidu	5000
W Vadrararajulu Naidu	5000
Harshavardhana	310000
Vikramaditya	310000
Ashok Galla	310000
Siddharth Galla	310000
M. Latha	10000
Total	11705000

As on 25.08.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of directors	99.70
Other top fifty shareholders	0.30
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Consumer Power Solution.
Products :	Item Code (ITC Code)	Product Description
	850440.90	UPS
	850440.30	Auto Battery Chargers
	850440.90	Converters
	940540.90	LED Lantern

PRODUCTION STATUS AS On 31.03.2011

Particulars	Unit	Installed Capacity	Actual Production
UPS	Nos.	900000	172076
Converters, Inverters and SMR’s	Nos.	50000	29149
Battery Chargers	Nos.	10000	1226
LED Lantern	Nos.	200000	10666

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• State Bank of India, Branch Settipalli, Renigunta Road, Tirupati – 517520, Andhra Pradesh, India
• Indian Bank, Gandhi Road, Tirupathi - 517501, Andhra Pradesh, India

Facilities :

Secured Loan [Rs. in million]	31.03.2011	31.03.2010
Term Loan	237.060	173.445
working capital Loan	95.812	77.608
Car Loan	0.024	0.293
(Secured against hypothecation of Specific assets)
Total	332.896	251.346

Banking Relations :	--
Auditors :
Name :	E. Phalguna Kumar and Company Chartered Accountants
Address :	599/2, Balaji Colony, Tirupati – 517520, Andhra Pradesh, India
Pan No.:	AADSE1485A
Associates :	Amara Raja Industrial Services Private Limited
Related Parties :	Amara Raja Batteries Limited Amara Power System Limited Mangal Precisions Products Limited Galla Foods Limited Amara Raja Infra Private Limited

CAPITAL STRUCTURE

As on 25.08.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
14,000,000	Equity Share	Rs.10/- Each	Rs.140.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11,705,000	Equity Share	Rs.10/- Each	Rs.117.050 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
14,000,000	Equity Share	Rs.10/- Each	Rs.140.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9,205,000	Equity Share	Rs.10/- Each	Rs.92.050 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		92.050	92.050	11.050
2] Share Application Money		25.000	0.000	20.000
3] Reserves & Surplus		53.183	49.984	56.740
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		170.233	142.034	87.790
LOAN FUNDS
1] Secured Loans		332.896	251.346	155.976
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		332.896	251.346	155.976
DEFERRED TAX LIABILITIES		8.177	0.000	3.288
TOTAL		511.307	393.380	247.054
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		450.577	50.721	38.485
Capital work-in-progress		2.622	241.482	84.263
INVESTMENT		0.045	0.045	0.000
DEFERREX TAX ASSETS		0.000	0.114	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	209.944	164.108	126.816
	Sundry Debtors	203.776	77.990	162.278
	Cash & Bank Balances	1.746	2.092	4.550
	Other Current Assets	0.056	0.011	0.000
	Loans & Advances	68.827	75.605	45.774
Total Current Assets		484.349	319.806	339.418
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	387.543	160.390	168.746
	Current Liabilities	21.919	20.881	15.067
	Provisions	16.825	37.517	31.299
Total Current Liabilities		426.287	218.788	215.112
Net Current Assets		58.062	101.018	124.306
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		511.306	393.380	247.054

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1195.312	769.093	734.143
		Other Income	2.147	1.056	0.885
		TOTAL (A)	1197.459	770.149	735.028
Less	EXPENSES
		Consumption materials changes inventories	908.826	558.663	509.184
		Manufacturing service costs	5.712	3.830	50.898
		Employee related expenses	102.949	73.310	5.122
		Administrative selling other expenses	147.279	128.506	77.927
		Research development expenditure	2.280	2.144	35.331
		TOTAL (B)	1167.046	766.453	676.022
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		30.413	3.696	59.006
Less	FINANCIAL EXPENSES (D)		11.507	10.908	8.275
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		18.906	[7.212]	50.731
Less/ Add	DEPRECIATION/ AMORTISATION (F)		7.941	2.946	2.527
	PROFIT BEFORE TAX (E-F) (G)		10.965	[10.158]	48.204
Less	TAX (I)		7.766	3.402	17.494
	PROFIT AFTER TAX (G-I) (J)		3.199	[6.756]	30.710
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		49.273	56.029	25.319
	BALANCE CARRIED TO THE B/S		52.472	49.273	56.029
	EARNINGS IN FOREIGN CURRENCY		25.292	3.943	2.122
	Earnings Per Share (Rs.)		0.35	[2.44]	9.89

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.27	[0.88]	4.18
Net Profit Margin (PBT/Sales)	(%)	0.92	[1.32]	6.57
Return on Total Assets (PBT/Total Assets}	(%)	1.17	[2.74]	12.76
Return on Investment (ROI) (PBT/Networth)		0.06	[0.07]	0.55
Debt Equity Ratio (Total Liability/Networth)		4.46	3.31	4.23
Current Ratio (Current Asset/Current Liability)		1.14	1.46	1.58

LOCAL AGENCY FURTHER INFORMATION

Performance:

The vagaries of weather, leading to unpredictable swings in the market potential, tapering growth in the Home UPS market, entry of many consumer durables The company has now built-up the technology, skill base and manufacturing facilities to manufacture small high frequency transformers. The company has received The company has enhanced its product development capability in the embedded programming domain. Important value engineering projects have been taken up to make the company’s products competitive.

Infrastructure at the company’s manufacturing facility in Diguvamagham has been expanded and now spans 20,000 sq., mts., The team has over the years developed

Outlook:

The company plans to augment revenues by introducing Kitchen appliances products viz. Induction Cooker and Rice Cooker, marking its the entry into the Consumer Leveraging the existing 100 distributors, the company proposes to expand the retailers base from the current 1000 to 2000 with the addition of 1000 new retailers

Manufacturing services business lead by the small transformers business remains promising.

The expansion in this segment will enable improved fixed cost absorption.

Enquiries for “automotive electronics” manufacturing are strong with the robust growth experienced by the automotive segment.

Contingent Liability not provided for:

Particulars	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
1. Claims against the Company not acknowledged as debts
Fuel Surcharge Adjustment charges for the period from Oct '08 to Mar '09	0.080	0.000
2. Other money for which the company is contingently liable
A. The following Disputed taxes are not provided in the books
Disputed Sales Tax demand	24.200	1.440
B. The following bank guarantees/LC given by banks on behalf of the Company to customers are outstanding as on the data of Balance sheet date.
Counter Guarantees to Bankers in respect of Bank guarantees issued in favour of various Constituents	11.810	1.880
LC given to different vendors	13.530	0.000

Bankers Charges Report as per Registry

Corporate identity number of the company

U31402AP1999PLC032257

Name of the company

AMARA RAJA ELECTRONICS LIMITED

Address of the registered office or of the principal place of business in India of the company

Renigunta - Cuddapah Roadkarakambadi, Tirupati - 517520, Andhra Pradesh, India

E- mail : mjk@amararaja.co.in

This form is for

Modification of charge

Charge identification (ID) number of the charge to be modified

10086978

Type of charge

Immovable property

Book Debts

Particular of charge holder

State Bank of India, Branch Settipalli, Renigunta Road, Tirupati – 517520, Andhra Pradesh, India

E-mail : sa.06677@sbi.co.in

Nature of instrument creating charge

1. Form C-5: Letter Regarding The Grant of Individual Limits Within The Overall Limit Dated 24.12.2009.

2. SBI Sanction Letter

Date of instrument Creating the charge

24.12.2009

Amount secured by the charge

Rs.360.000 millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of Interest –

On Cash Credit and Term Loan : At SBAR i.e. 11.75% p.a. with monthly rests, subject to change from time to time.

Terms of Repayment –

Repayment schedule for term loan has been revised as follows:

(Rs. In Millions)

Period	No. of quarters	Revised installment
01.09.2009-01.03.2010	3	1.000
01.06.2010-01.03.2011	4	11.000
01.06.2011-01.06.2015	18	12.500
01.12.2015	1	13.000

Margin –

Raw material, stock in process and finished goods : 25%

Book debts : 40%

Letter of credit and bank guarantee : 10%

Term Loan : 25%

Extent and Operation of the charge –

This charge will be treated as modified charge to the extent of Rs. 360.000 millions and secured by the following ;

1. First charge on all Current assets of the company and second charge on all fixed assets of the company ranking pari passu with Indian bank for working capital limits.

2. First charge on all fixed assets of the company and second charge on all current assets of the company ranking pari passu with Indian bank for Term Loan of Rs. 285.000 millions (New).

Date of instrument modifying the charge

02.02.2009

Particulars of the present modification

By this modification no change has been made in the overall limit of Rs. 360.000 millions and except revised repayment schedule and interest rate, other terms and conditions shall remain unaltered.

Fixed Assets :

• Computers
• Land
• Building
• Furniture
• Office Equipments
• Plant and Machinery
• Vehicles
• Electrical Installation

As per Website Details

Dr. Ramachandra N. Galla is the Patriarch of an illustrious business family of Andhra Pradesh, Gallas, who have established a name for themselves by successfully setting up Amara Raja Batteries. Born in 1938, Dr. Ramachandra Galla is an Electrical Engineer from S.V. University, Tirupati and has to his credit Masters degrees in Applied Electronics, Roorkee, India and Systems Sciences, Michigan State University, USA.

Dr. Galla started his career as an Electrical Engineer in US Steel Corporation, USA moved on to Sargent and Lundy, USA as a Consulting Engineer for the Designing of Nuclear and Coal Fired Power Plant. He initiated various projects in these corporations and mastered the ropes of this competitive business in a very short time. However, he soon discovered that his natural inclination was serving his country and as a logical sequel he gravitated towards Chittoor his native place in India. Dr. Galla laid the foundation of Amara Raja batteries in 1985 in Chittoor. With his intense zeal and highly focused approach, he propelled Amara Raja Batteries in the top league of battery companies in India.

In his capacity as the Chairman, Dr. Ramachandra Galla has promoted and established the following companies from the conceptual stage which are now well established and profit making:

• Amara Raja Batteries Limited
• Amara Raja Power System Limited
• Mangal Precisions Products Limited
• Amara Raja Electronics Limited
• Galla Foods Limited
• Amara Raja Infra Private Limited
• Amaron Batteries Private Limited
• Amara Raja Industrial Services Private Limited

Dr Galla's finest hour as a businessman came in 1998 when he was presented BEST ENTERPRENEUR OF THE YEAR 1998 ” – by Hyderabad Management Association, Hyderabad. He has been bestowed with honorary doctorate degrees from Jawaharlal Nehru Technical University in 2008 at Hyderabad and Sri Venkateswara University in 2007 at Tirupati. He has also been conferred with “THE SPIRIT OF EXCELLENCE” award by Academy of Fine Arts, Tirupati, and various other prestigious awards.

He is passionate about a corporate’s responsibility to society as well as championing eco-friendly business practices. Dr. Galla has established various charitable trusts like Krishna Devaraya Educational and cultural association (KECA), Rajanna Trust, Mangamma and Gangul Naidu Memorial Trust. He is dedicated to rural development and improving the economic conditions of the farmers in Chittoor District, Andhra Pradesh, India. KECA which was established in 1975 provides scholarship to the poor and needy students to pursue their higher education. While Rajanna Trust that was established in 1999 to construct check dams and deepening the tanks to improve the ground water levels. MANGAL TRUST was established in 2003 to provide drinking water facilities, constructing check dams and providing infrastructure facilities to Petamitta and surrounding villages.

A committed family man with wife, two children and grand children, he loves spending time with his family and participating in society development project.

Jayadev Galla (Jay) is the Managing Director of Amara Raja Batteries Limited (ARBL), a leading manufacturer of Advanced Lead Acid batteries for Industrial and Automotive applications. ARBL is a joint venture between Amara Raja group and US based Johnson Controls Inc. (JCI). JCI is a USD 35 billion conglomerate and the global leader in building efficiency, automotive interior experience and automotive power solutions. The company owns the brand name “Amaron” which is the second largest selling automotive battery brand in India today. ARBL is a widely held public limited company listed on the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited. The gross revenue for the year ending 31 March 2009 is more than USD 300 million.

Achievements

• Spearheading ARBL’s automotive batteries (Amaron) venture
• Striking a partnership with JCI, U.S.A. for the automotive battery business
• Winning the prestigious Ford World Excellence Award in 2004 achieved by meeting global delivery standards. ARBL is the 3rd supplier from India to be given this award.

Profile :

Subject is a rapidly growing company in the field of Electronics Manufacturing Services (EMS), Engineering Design Services (EDS) Custom Magnetic Solutions (CMS) and Consumer Electronics.

Subject has its manufacturing facility in Chittor which is strategically located between Bangalore and Chennai. The 4500sq.m facility is present amidst a lot of greenery with its workforce mostly comprising of woman.

The current facility is being expanded to about 15,000sq.m to meet the ever increasing demands of Electronics Manufacturing Services. It has advanced production lines comprising of FUJI make SMT line. The workforce is constantly trained to newer and upcoming technologies to be in sync with global threshold levels.

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.44.37
UK Pound	1	Rs.72.34
Euro	1	Rs.63.87

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		34

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.