MIRA INFORM REPORT

Report Date :

17.03.2012

IDENTIFICATION DETAILS

Name :	RAJASTHAN ELECTRONICS AND INSTRUMENTS LIMITED
Registered Office :	2, Kanakpura Industrial Area, Sirsi Road, Jaipur-302012, Rajasthan
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	12.06.1981
Com. Reg. No.:	17-002249
Capital Investment / Paid-up Capital :	Rs.52.500 Millions
CIN No.: [Company Identification No.]	U51395RJ1981G01002249
TAN No.: [Tax Deduction & Collection Account No.]	JPRR02579D
PAN No.: [Permanent Account No.]	AAABCR1528
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing and Marketing of Electronic Products and Services.
No. of Employees :	700 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

A (61)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 1100000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company of Rajasthan Government 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 good for normal 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 / Factory :	2, Kanakpura Industrial Area, Sirsi Road, Jaipur-302012, Rajasthan, India
Tel. No.:	91-141-2470271/2470062/2470363/2470784 [Electronics]/ 2470176 [Foss Business]/ 2470908 [RE]/ 2471083 [MM]
Fax No.:	91-141-2470926/2470981/2470841/2470139
E-Mail :	reiljp@reiljp.com fin.acct@reil.co.in
Website :	http://www.reiljp.com
Corporate Office :	D-280, Todarmal Marg, Banipark, Jaipur-302016, Rajasthan, India
Tel. No.:	91-141-2203038
Fax No.:	91-141-2202071 (Dedicated)
E-Mail :	reiljp@sancharnet.in
Factory :	B-17, Chomu House, Kanakapura Industrial Area, C-Scheme, Jaipur-302001, Rajasthan, India

DIRECTORS

As on 22.09.2011

Name :

Mr. Akhilesh Kumar Jain

Designation :

Managing Director

Address :

93/9, Arihant Tulsi Marg, Agarwal Farm, Mansarovar, Jaipur-302020, Rajasthan, India

Date of Birth/Age :

15.03.1960

Date of Appointment :

01.03.2011

Din No.:

03466588

Name :

Mr. Madan Mohan Bhardwaj

Designation :

Director

Address :

71A, Hathroi Colony, Jaipur-302001, Rajasthan, India

Date of Birth/Age :

29.06.1950

Date of Appointment :

17.08.2010

Din No.:

00420405

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	U51395RJ1981GOI002249	RAJASTHAN ELECTRONICS AND INSTRUMENTS LIMITED	Director	17-08-10	31-08-96	-	Active	NO
2	U14220RJ1964GOI001188	SAMBHAR SALTS LIMITED	Managing director	22-08-07	22-08-07	30-06-10	Active	NO
3	U14220RJ1958GOI001049	HINDUSTAN SALTS LIMITED	Managing director	22-08-07	22-08-07	30-06-10	Active	NO

Name :

Mr. Prakash Mohan Bhardwaj

Designation :

Director

Address :

71B, Harikisan Somani Marg, Hatroi, Fort, Jaipur-302001, Rajasthan, India

Date of Birth/Age :

13.02.1953

Date of Appointment :

16.11.2007

Din No.:

01487328

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	U29120KL2000GOI014324	INSTRUMENTATION CONTROL VALVES LIMITED	Nominee director	29-03-07	29-03-07	-	Strike off	NO
2	U31109RJ2000GOI016629	IL POWER ELECTRONICS LIMITED	Nominee director	29-03-07	29-03-07	-	Strike off	NO
3	U29299RJ1964GOI001174	INSTRUMENTATION LIMITED	Director	01-11-07	01-11-07	-	Active	NO
4	U51395RJ1981GOI002249	RAJASTHAN ELECTRONICS AND INSTRUMENTS LIMITED	Director	01-01-11	16-11-07	-	Active	NO
5	U31200RJ2000GOI016628	INSTRUMENTATION DIGITAL CONTROLS LIMITED	Director	28-03-08	28-03-08	-	Strike off	NO
6	U14220RJ1958GOI001049	HINDUSTAN SALTS LIMITED	Alternate director	12-12-11	12-12-11	09-01-12	Active	NO

Name :

Mrs. Aparna Sahay

Designation :

Director

Address :

C 351, Pradhan Marg, Malviya Nagar, Jaipur-302017, Rajasthan, India

Date of Birth/Age :

01.10.1955

Date of Appointment :

05.06.2008

Din No.:

02251732

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	U51505RJ1985SGC003193	RAJASTHAN ELECTRONICS LIMITED	Director	05-06-08	05-06-08	Strike off	NO
2	U51395RJ1981GOI002249	RAJASTHAN ELECTRONICS AND INSTRUMENTS LIMITED	Nominee director	05-06-08	05-06-08	Active	NO
3	U24232RJ1978GOI001823	RAJASTHAN DRUGS AND PHARMACEUTICALS LIMITED	Nominee director	05-06-08	05-06-08	Active	NO

Name :

Mr. Jainendra Kumar Sivasankaran Nair

Designation :

Director

Address :

Block No. 6, Quarter No. 706, Lodi Colony, New Delhi-110003, India

Date of Birth/Age :

30.05.1954

Date of Appointment :

14.06.2011

Din No.:

02891230

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	U31300WB1952GOI020560	HINDUSTAN CABLES LIMITED	Director	10-07-09	10-07-09	Active	NO
2	U35921MH1980GOI023354	NATIONAL BICYCLE CORPORATION OF INDIA LIMITED	Nominee director	27-07-10	27-07-10	Active	NO
3	U14220RJ1964GOI001188	SAMBHAR SALTS LIMITED	Director	02-08-10	02-08-10	Active	NO
4	U14220RJ1958GOI001049	HINDUSTAN SALTS LIMITED	Director	02-08-10	02-08-10	Active	NO
5	U29299RJ1964GOI001174	INSTRUMENTATION LIMITED	Director	02-06-11	02-06-11	Active	NO
6	U51395RJ1981GOI002249	RAJASTHAN ELECTRONICS AND INSTRUMENTS LIMITED	Nominee director	14-06-11	14-06-11	Active	NO

Name :

Mr. Mohan Lal Bhargava

Designation :

Director

Address :

6 A, Sector No. 4, BH Jawhar Nagar, Ward No. 30, Jaipur-302004, Rajasthan, India

Date of Birth/Age :

16.09.1944

Qualification :

25.01.2011

Din No.:

03433342

KEY EXECUTIVES

Name :	Mr. A.K. Pandey
Designation :	Chief Vigilance Officer
Name :	Mr. Piyush Paliwal
Designation :	General Manager (Works)
Name :	Mr. Ajay Bhargava
Designation :	Addl. General Manager (CP and IT)
Name :	Mr. M.B. Mathur
Designation :	Addl. General Manager (RE)
Name :	Mr. R.K. Gupta
Designation :	Addl. General Manager (R and D)
Name :	Mr. Rakesh Chopra
Designation :	Addl. General Manager (Mktg.-FES)
Name :	Mr. Sanjeev Kumar
Designation :	Addl. General Manager (MM)
Name :	Mr. Anand Kumar Sharma
Designation :	Dy. General Manager and Regional Head (Mkt.-E)
Name :	Mr. Neeraj Saxena
Designation :	DGM (P and IR)
Name :	Mr. Subhash Agarwal
Designation :	DGM  (F and A) Cum APIO
Name :	Mr. Jitendra Kumar
Designation :	Dy. General Manager (QA)
Name :	Mr. H.S. Galav
Designation :	Manager (MM)
Name :	Mr. D.K. Mishra
Designation :	Manager (IT)
Name :	Mr. P. N. Sharma
Designation :	Manager (BD)
Name :	Mr. Deepak Gupta
Designation :	Manager (RE)
Name :	Mr. Sanjay Mehra
Designation :	Manager (PPC)
Name :	Mr. Ashish Chowdhary
Designation :	Regional Manager (ER)
Name :	Mr. D.K. Gupta
Designation :	Manager (RM-Raj.)
Name :	Mr. N.K. Bhatnagar
Designation :	Manager (E)
Name :	Mr. S.R. Nirmal
Designation :	Manager (QA)
Name :	Mr. Amitabh Sharma
Designation :	Manager (RE)
Name :	Mr. Sanjay Gupta
Designation :	Manager (E)
Name :	Mr. Kamlesh Singh
Designation :	Manager (Works)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 22.09.2011

Names of Shareholders	No. of Shares
Rajasthan State Industrial Development and Investment Corporation Limited, India	6002500
Instrumentation Limited, India	6247500
A. Shringi	1
Prakash Mohan Bhardwaj	1
Anurag Saxena	1
S.K. Gupta	1
Aparna Sahay	1
Urmila Rajoria	1
Ramanand	1

As on 22.09.2011

Equity Share Breakup	Percentage of Holding
Category
Government [Central and State]	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Marketing of Electronic Products and Services.

Products :

PRODUCT DESCRIPTION	ITEM CODE
Agro Electronic Instruments	90278090
Solar Photovoltaic Modules and its Systems	85414011
Wind Power Generation	--

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Installed Capacity	Actual Production
Electronic Milk Analyser (EMA)	In Nos.	4500	6326
Solar PV Modules/ Systems (SPV)	In KW.	2000	2855 (43428 Nos.)**
Wind Power Generation	In Kwh	2000000	1171218**

NOTE:

· Installed capacity is on single shift basis.

· The Qty. of production of SPV modules includes 1522 Nos. purchases/returns during the year.

· ** Includes 105410 Kwh used for captive consumption and 11712 Kwh taken by RVVNL towards wheeling charges.

GENERAL INFORMATION

No. of Employees :

700 [Approximately]

Bankers :

• Punjab National Bank, MI Road, Jaipur-302001, Rajasthan, India
• State Bank of Bikaner and Jaipur, Tilak Marg Branch, Jaipur-302 005, Rajasthan, India

· Bank of Baroda, Park Street Branch, Jaipur-302001, Rajasthan, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Rupee term loans financial institutions	24.469(A)	32.784(B)
Working capital loans	29.501	63.195
Deposit	25.614	0.000
Total	79.584	95.979

NOTE:

(A) It includes term loan from IREDA amounting to Rs.3040830 and RIICO Limited amounting to Rs.21.428 millions.

(B) It includes term loan from IREDA amounting to Rs.5641353 and RIICO Limited amounting to Rs.27.142 millions.

Banking Relations :	--
Auditors :
Name :	Gopal Sharma and Company Chartered Accountants
Address :	G-2, Golden Palance, P. No. L-2-A, Krishna Marg, C-Scheme, Jaipur, Rajasthan, India
Pan No.:	AADFG4061A
Holding Company:	Instrumentation Limited

CAPITAL STRUCTURE

As on 22.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12250000	Equity Shares	Rs.10/- each	Rs.122.500 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5250000	Equity Shares	Rs.10/- each	Rs.52.500 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		52.500	42.500	42.500
2] Share Application Money		35.700	10.200	10.200
3] Reserves & Surplus		192.436	152.617	142.853
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		280.636	205.317	195.553
LOAN FUNDS
1] Secured Loans		79.584	95.979	107.856
2] Unsecured Loans		0.000	0.000	20.000
TOTAL BORROWING		79.584	95.979	127.856
DEFERRED TAX LIABILITIES		12.565	5.670	31.614
TOTAL		372.785	306.966	355.023
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		106.959	113.762	129.277
Capital work-in-progress		1.277	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	160.773	87.652	116.754
	Sundry Debtors	472.199	475.910	340.315
	Cash & Bank Balances	157.149	11.843	35.822
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	57.203	44.863	41.678
Total Current Assets		847.324	620.268	534.569
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	269.309	225.262	192.522
	Other Current Liabilities	214.427	50.066	41.303
	Provisions	99.039	151.736	74.998
Total Current Liabilities		582.775	427.064	308.823
Net Current Assets		264.549	193.204	225.746
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		372.785	306.966	355.023

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1316.394	978.480	857.580
		Other Income	19.041	12.851	13.531
		TOTAL (A)	1335.435	991.331	871.111
Less	EXPENSES
		Consumption Material Changes Inventories	925.112	646.270
		Manufacturing Service Costs	7.907	9.573	823.740
		Employee Related Expenses	164.140	165.863
		Administrative Selling Other Expenses	157.508	112.704
		TOTAL (B)	1254.667	934.410	823.740
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		80.768	56.921	47.371
Less	FINANCIAL EXPENSES (D)		8.743	19.832	22.786
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		72.025	37.089	24.585
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.498	17.122	9.733
	PROFIT BEFORE TAX (E-F) (G)		62.527	19.967	14.852
Less	TAX (H)		12.209	1.703	3.765
	PROFIT AFTER TAX (G-H) (I)		50.318	18.264	11.087
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2.872	2.108	1.771
Less	APPROPRIATIONS
		Transfer to General Reserve		9.000	6.500
		Proposed Dividend	49.500	7.289	3.633
		Corporate Dividend Tax		1.211	0.617
	BALANCE CARRIED TO THE B/S		3.690	2.872	2.108
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.369	0.188	8.123
		Other Commission	0.000	1.179	4.961
	TOTAL		0.369	1.367	13.084
	IMPORTS
		Raw Materials	314.707	183.411	181.349
		Stores & Spares	0.000	0.000	0.241
	TOTAL IMPORTS		314.707	183.411	181.590
	Earnings Per Share (Rs.)		9.92	4.30	2.70

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.77	1.84	1.27
Net Profit Margin (PBT/Sales)	(%)	4.75	2.04	1.73
Return on Total Assets (PBT/Total Assets}	(%)	6.87	2.72	2.23
Return on Investment (ROI) (PBT/Networth)		0.22	0.10	0.07
Debt Equity Ratio (Total Liability/Networth)		2.36	2.55	2.23
Current Ratio (Current Asset/Current Liability)		1.45	3.49	1.73

LOCAL AGENCY FURTHER INFORMATION

OVERVIEW OF THE COMPANY:

Despite new risks, the global economic recovery appears to be on, and the IMF has projected a 4.5% world growth in 2011 and 2012. While the growth in emerging economies remains strong, the down grading of American and European economies, natural disaster in Japan, consequent to the turmoil in the Middle East and North Africa is fuelling uncertainty to the pace of global recovery. Globally, elevated food and commodity prices accompanied by the spike in oil prices have increased the inflation concerns.

The Indian Economy registered improved growth and was amongst the better performers amid emerging market economies. The Central Statistical Organization’s recent estimated India GDP growth rate of 8.6% for 2010-11 is consistent with the RBI’s projections for the same period. The indicators such as direct and indirect tax collections, merchandise exports and bank credit suggest that the growth momentum persists. However, continuing uncertainty about energy and commodity prices may vitiate the investment climate, posing a threat to the current growth trajectory. Inflation remains a challenge for the Indian economy and the key risks are tighter monetary conditions and rising prices eating into the consumer’s disposable income.

ANALYSIS AND REVIEW

Electronics and Information Technology

The Electronics Division continued to enjoy its dominant position in the Agro Dairy segment, through its Customer focused approach, prompt deliveries of products, and proper backup support. The focus of the Division has been to satisfy its external esteemed customers. Accurate and reliable testing at society level/milk collection point has generated a lot of trust in milk producers and thus REIL products have become vital and critical equipment during all round growth of Dairy Industry.

The Division achieved an ever-highest turnover of Rs. 558.200 millions during the year 2010-11, and deployed around 9500 Milk Analyzers including Electronic Milk Testers, Automatic Milk Collection Units, Smart DP-MCU, DP-MCU and Auto EMT. The revenue from spares sale and backup support has also increased during the year. The Division has received prestigious orders from M/s. MDFVPL (Mother Dairy), NOIDA, for deploying 750 Nos. of Smart DPMCU and 1100 Nos. of DPU based Milk Collection Units and AMCUs, valuing more than Rs. 130.000 millions. The Company has received orders for Solar EMT also from the State of Bihar.

The Company has received orders, for FOSS business, valuing more than Rs. 150.000 Millions which includes 36 nos of various high-end equipments, spares and services. Company has received biggest single order for 06 nos and 05 nos of Milkoscan FT120 from Vasudhara Milk Union and Surat Milk Union respectively. This year the Company has deployed 27 nos. of high-end equipments and achieved turnover of more than Rs. 115.000 Millions. The product includes FT-120, Milko Scan Minor 4 and 6 parameters and Fossomatic Minor. REIL has made its first deliveries of the Milkoscan Minor in the state of Tamilnadu, at TCMMF Chennai. These instruments are largely contributing in procurement, process and production of high quality milk and milk products.

The Company has achieved continued growth in FOSS business with dedicated team of Foss Sales and Service. The service engineers have been trained at the FOSS Academy, Denmark and located strategically in the country to cater high level of services on various high-end equipments. The Division has been taking active part in activities such as workshops, seminars exhibitions etc., related to improvements/up-gradation of milk collection processes thereby improving the milk quality in the dairy industry. The company participated in the conference and exhibition organized by Indian Dairy Association (IDA) in its XXXIX Dairy Industry Conference at Kolkata during 4-6 Feb. 2011. The Company exhibited its products on the occasion and focused on FOSS-Range of equipments and Ultra Sonic Milk Analyser at the exhibition.

Continued patronage for the Company products has placed REIL as a market leader in the Indian Dairy Industry. This has brought lot of advantage to their esteemed customer in terms of working on existing technology, up gradation of old technologies, developing new technologies, embedding different technologies and thus fulfilling the emerging needs, mainly for milk analysis, atomization of milk collection, process, control and monitoring, data management, data analysis and control to achieve the overall aim of qualitative and quantitative produce of milk and milk products.

The customer satisfaction is directly linked with the performance of the product. The Division gives due importance to training its customers on system operation and maintenance, to ensure uninterrupted functioning of the products. On-site training programmes have been arranged for customers. The trainers are also given refreshers periodically, to update them. This not only upgrades the skill of employees but also motivates them to perform still better.

The population of Company’s products is increasing every year. The Company is practically leading the market, with a population of more than 87350 nos. of Electronic Milk Analyzers, 8900 nos. of PC/DP Milk Collection Stations and 8000 nos. Data Processor-Electronic Milk Analyzers. The Indian Dairy Industry, having achieved the distinction of being the global leader in milk production, is now focusing on improving the quality in the quantity produced, to benefit from the value-addition through quality milk products. The focus on quality is now, right at the

grass-root-level of milk collection points, with higher remunerations based on multi-parameter testing (SNF, protein, lactose in addition to Fat content earlier). This has resulted in demand for a multi-parameter milk analyzer, and in absence of a reliable, fast and economic offering from REIL, it is currently being addressed through imported products. Efforts are on to introduce a suitable product, (through in-house development or collaborative development/production) to retain their leadership in the market.

The Company is in touch with the customers through its Regional Offices and Field Maintenance Centers, strategically located all over the country, to provide technical support. During the year the Company has taken up two major projects for computerization in the cooperative sector. The Company has signed a MoU with Rajasthan State Co-Operative Bank, Jaipur for computerization of 400 or more branches of District Central Cooperative Banks (DCCBs), 29 DCCB Head Offices, 5 Regional Offices and the Apex Bank Head Office, in the state of Rajasthan for supply of computer hardware, providing post sales warranty support, maintenance, and appropriate Core Banking Solution (CBS) software.

The Company has also signed a MoU with Rajasthan State Land Development Bank Limited, Jaipur for computerization of its Head Office, Regional Offices, Primary Land Development Banks (PLDBs) and Branch Offices under PLDBs in the state of Rajasthan. The computerization includes development of various application software modules for all offices, successful integration of software modules, providing post sales warranty support, maintenance, initial implementation support, training for manpower, continuous support on application software for needful changes as per dynamics change in business environment etc.

The IT Division of the Company has developed and delivered various application software modules for the State Land Development Bank (SLDB) Head Office and Regional Offices, which includes Flotation module, Loan management module, Loan recovery module, Financial accounting module, Human Resource module, Payroll module, CPF module and Inventory and Stores module. The software modules for PLDBs and Branch Offices, and some modules for SLDB Head Office and Regional Offices, are under development.

The Company furthered the growth of e-learning solutions, through its IT Gyan Kendras in the state of Rajasthan, as one of the Program Support Agency (PSA), to the Rajasthan Knowledge Corporation Ltd. (RKCL), Jaipur. The Division also imparted the IT industrial training to engineering students and conducted courses for the state government employees, through the franchisee network, for the Department of Information Technology and Communication (DoIT and C), Rajasthan.

Renewable Energy (RE) Division

The Company has signed Memorandum of Understanding with Ministry of New and Renewable Energy (MNRE)/ Department of Rural Development and Panchayati Raj for a 12 MW Solar Project of national importance. Solar Power Packs are to be installed at 9168 nos. Gram Panchayats and 249 nos. Panchayat Samities of Rajasthan. This is perhaps the largest off-grid solar power pack project in India till date. The MNRE has sanctioned the project under Jawaharlal Nehru Solar Mission.

The Company has achieved the highest ever turnover of Rs 754.000 Millions in Renewable Energy Products which includes turnover of Rs 350.600 Millions from the prestigious project of the Rural Development and Panchayati Raj Department, Government of Rajasthan. During the year the Company has supplied 931 nos. 1.12 Kwp Solar Power Packs at Bharat Nirman Rajiv Gandhi Seva Kendras (BNRGSK) at Gram Panchayat level and 144 nos. 2.24 Kwp SPV Power Packs at BNRGSK at Panchayat Samiti level in Rajasthan. The Company has supplied and installed 8002 nos. SPV Domestic Lighting Systems in Rajasthan, against order received from Rajasthan Renewable Energy Corporation, Jaipur, and supplied and installed 745 nos. SPV Street Lights in North East India, against order received from Eastern Command, Kolkata.

The Company has successfully executed a prestigious order worth Rs 109.200 Millions, received from Gas Authority of India Limited, for supply, installation and commissioning of 22 nos. Solar Power Plants, for Bawana Nagal Pipeline project. The Company has marked its presence in Southern India and has successfully executed an order for supply, installation and commissioning of two Solar Power Plants of 60 KWp for VSEZ, Vishakapatnam, valued at Rs 16.900 Millions. The Company also supplied and installed 7 nos. Solar Power Plants, at Silk Reeling Units in Madhya Pradesh, for MP Silk Federation. During this year Company has also executed an order from Sher-e-Kashmir University, Jammu, for supply, installation and commissioning of Solar PV Power Plants at University campus.

The Jawahar Lal Nehru Mission for Solar Energy has thrown up substantial opportunities and to en-cash the same, a number of players have emerged in the market. The competition has increased along with the demand, and in order to retain the market share and competitive edge, the Company has planned capacity expansion of its module manufacturing through an automatic manufacturing line. The line would enable quality manufacturing, to enable international certifications and reduced manufacturing cost. Further, the plans for establishment of large MW capacity solar plants in the country, have created the demand for grid-interactive PCUs and the Company is exploring the possibilities for a technology tie-up and manufacturing of this product. During the year the Company’s 1.2 MW Wind Power Plant, at Jaisalmer, generated net wind power of 1171218 Kwh.

The Business Development Division of the Company continues to explore business opportunities in new up-coming areas and translate them into orders to service the customer needs. The Division has made a technical tie-up for assembling of Automatic Teller Machine(ATM) for banking operation. The Division entered into the area of providing surveillance and security solutions and bagged orders from Police Head Quarters, Jaipur, Rajasthan, for supply, installation and commissioning of CCTV system in the walled city of Jaipur and the Dargah Sharief, Ajmer, which have been completed successfully. The orders received from, the Devasthan Department Rajasthan, for twenty one temples; the Rajasthan Board of Secondary Education, Ajmer; and the Shri Nathji Temple, Nathdwara; are in advance stages of execution. The Company is undertaking third party Energy meter testing, through the NABL accredited REIL Laboratory.

PRODUCTION

The production, during the financial year 2010-2011 amounted to Rs. 1079.371 Millions [including Balance of System of Rs. 329.075 Millions], as against Rs. 784.676 Millions [including Balance of System of Rs. 117.339 Millions] achieved in 2009-2010. During the year the Company has produced 41906 Solar Photo Voltaic Modules equivalent to 2855 KW and 6326 Electronic Milk Testers.

New Products

The Company is in constant touch with its esteemed customers, to identify new areas of development, to make their processes simple, reliable, accurate, transparent and efficient. The following new products were taken for development during the year 2010-11 and shall be ready for commercial launching, after successful completion of the field trials planned in 2011-12:

Multiparameter High Speed Ultrasonic Milk Analyzer

In the context of the growing market requirement of a solution for low cost, fast measurement of Fat, SNF, Protein Millionstose, and CLR, at the milk collection points, R and D has taken up the design and development of a Ultrasonic Milk Analyser. The R and D had earlier developed Ultrasonic Milk Analyser, with measurement time less than 60 seconds, and launched them in the earlier years. This product is facing tough competition in the market, from other products, and needs dynamic processes to match standards.

The demand has now enhanced to a high speed instrument which can analyse the milk sample, within 40 seconds, for multi-parameter measurements. The existing instrument has been modified and improved to meet the requirement. The proto-types of the product have been deployed at identified locations and the performance is being monitored for evaluation.

Product Up gradation

Smart DPMCU

The Company received an order from NGC Junagarh, for supply of Smart DPMCU and Smart AMCU, which had new customer-specific requirements such as higher number of members, weight measurement up to two decimal digits etc. These requirements have been addressed in the upgraded product. The product has been successfully installed in field and is working satisfactorily.

Calibration software of Ultrasonic Milk Analyser

The Ultrasonic Milk Analyzer is calibrated by using the DOS based software, which requires lot of manual effort in feeding the counts. Now a Visual Basic based new software has been developed. It reduces the time of calibration and eliminates the mistakes arising from manual operations. The software has been tested and is working satisfactory.

Engineering and Documentation

The Engineering activities undertaken include initiating measure to safeguard intellectual property of the company, maintenance of design and development documents and data and issue to various agencies, providing alternate sources for critical materials, cost reduction in existing products through re-engineering, etc.

CONTINGENT LIABILITIES:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)
Guarantee given by bankers on behalf of the company	123.060	98.897
Claims against the Company Not acknowledged as debts:
Liability against Taxes/Excise duty for which representations and/or appeals are pending with appropriate authorities.	20.852	29.951
Total	143.912	128.848

FIXED ASSETS:

· Leasehold Land

· Road, Drains and Water Supply and Building

· Plant and Machinery

· Furniture, Fixtures and Other Equipments

· Vehicles

· Temporary Structure

· Wind Power Energy

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.50.31
UK Pound	1	Rs.79.05
Euro	1	Rs.65.83

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		61

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.