MIRA INFORM REPORT

Report Date :

04.10.2012

IDENTIFICATION DETAILS

Name :	AMARA RAJA POWER SYSTEMS LIMITED [w.e.f. 25.03.2009]
Formerly Known As :	AMARA RAJA POWER SYSTEMS PRIVATE LIMITED
Registered Office :	Ranigunta, Cuddapah Road, Karakambadi, Tirupati – 517520, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	06.12.1984
Com. Reg. No.:	01-005165
Capital Investment / Paid-up Capital :	Rs. 17.328 Millions
CIN No.: [Company Identification No.]	U31102AP1984PLC005165
PAN No.: [Permanent Account No.]	AABCA9265F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Magnetics, Design and Development of Power Electronic Products and Integration and Testing of Power Electronics Systems.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 1000000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. There appears huge dip in the profitability of the company in the current financial year 2010-11. However, networth of the company appears to be satisfactory. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating BB+
Rating Explanation	Moderate risk of default
Date	September 11, 2012

Rating Agency Name	CRISIL
Rating	Short term rating A4+
Rating Explanation	Minimal degree of safety. It carry very high credit risk and are suspectible to default.
Date	September 11, 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	Ranigunta, Cuddapah Road, Karakambadi, Tirupati – 517520, Andhra Pradesh, India
Tel. No.:	91-877-2265000
Fax No.:	91-877-2285600
E-Mail :	prs@amararaja.co.in amararajaj@amararaja.co.in
Website :	http://www.amararajapowersystems.co.in
Corporate Operations Office :	Head – Marketing and Sales “MC Design House”, 27, Rohini Layout, Hi-tech City, Madhapur, Hyderabad – 500 081, Andhra Pradesh, India
Tel. No.:	91-40-23633500
Fax No.:	91-40-23101999
Branch Offices :	Located at: Ø Mumbai Ø New Delhi Ø Kolkatta Ø Chennai Ø Bangalore Ø Hyderabad

DIRECTORS

AS ON 24.08.2011

Name :

Dr. Galla Ramachandra Naidu

Designation :

Chairman and Managing Director

Address :

Ranigunta - Cuddapah Road, Karakambadi, Tirupati – 517 520, Andhra Pradesh, India

Date of Birth/Age :

01.06.1938

Qualification :

ME (Applied Electronics), MS (System Sciences)

Date of Appointment :

08.07.1985

PAN No.:

ACYPG9385N

DIN No.:

00133761

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	L31402AP1985PLC005305	AMARA RAJA BATTERIES LIMITED	Director	01/09/2005	08/07/1985	Active	NO
2	U31102AP1984PLC005165	AMARA RAJA POWER SYSTEMS LIMITED	Managing director	19/06/2009	08/07/1985	Active	NO
3	U15122AP1990PLC011932	MANGAL INDUSTRIES LIMITED	Director	17/01/1994	17/01/1994	Active	NO
4	U31402AP1999PLC032257	AMARA RAJA ELECTRONICS LIMITED	Director	10/07/2012	09/08/1999	Active	NO
5	U15134AP2004PLC042852	GALLA FOODS LIMITED	Director	11/03/2004	11/03/2004	Amalgamated	NO
6	U24111AP1988PLC009231	ANDHRA PRADESH GAS POWER CORPORATION LIMITED	Director	29/09/2004	29/09/2004	Active	NO
7	U74990AP2008PTC057464	AMARON BATTERIES PRIVATE LIMITED	Director	06/02/2008	06/02/2008	Active	NO
8	U40102AP2008PTC059398	AMARA RAJA INFRA PRIVATE LIMITED	Director	29/05/2008	29/05/2008	Active	NO
9	U93000AP2009PTC064031	AMARA RAJA INDUSTRIAL SERVICES PRIVATE LIMITED	Director	17/06/2009	17/06/2009	Active	NO
10	U65993AP2010PTC066519	RNGALLA FAMILY HOLDINGS PRIVATE LIMITED	Director	01/01/2010	01/01/2010	Active	NO

Name :

Mr. Galla Jayadev

Designation :

Director

Address :

Ranigunta - Cuddapah Road, Karakambadi, Tirupati – 517 520, Andhra Pradesh, India

Date of Birth/Age :

24.03.1966

Qualification :

Bachelors Degree in Political Science and Economics

Date of Appointment :

14.08.1993

DIN No.:

00143610

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U31102AP1984PLC005165	AMARA RAJA POWER SYSTEMS LIMITED	Director	14/08/1993	14/08/1993	Active	NO
2	L31402AP1985PLC005305	AMARA RAJA BATTERIES LIMITED	Managing director	01/09/2010	12/03/1994	Active	NO
3	U15122AP1990PLC011932	MANGAL INDUSTRIES LIMITED	Director	02/12/2000	02/12/2000	Active	NO
4	U15134AP2004PLC042852	GALLA FOODS LIMITED	Managing director	01/04/2009	11/03/2004	Amalgamated	NO
5	U31402AP1999PLC032257	AMARA RAJA ELECTRONICS LIMITED	Managing director	10/07/2012	07/06/2007	Active	NO
6	U74990AP2008PTC057464	AMARON BATTERIES PRIVATE LIMITED	Director	06/02/2008	06/02/2008	Active	NO
7	U40102AP2008PTC059398	AMARA RAJA INFRA PRIVATE LIMITED	Director	29/05/2008	29/05/2008	Active	NO
8	U93000AP2009PTC064031	AMARA RAJA INDUSTRIAL SERVICES PRIVATE LIMITED	Director	17/06/2009	17/06/2009	Active	NO
9	U65993AP2010PTC066519	RNGALLA FAMILY HOLDINGS PRIVATE LIMITED	Director	01/01/2010	01/01/2010	Active	NO

Name :

Dr. Ramadevi Gourineni

Designation :

Director

Address :

3420, Adam Street, Hinsdale, Illinois, USA 60523

Date of Birth/Age :

22.09.1964

Qualification :

MD

Date of Appointment :

31.10.2002

DIN No.:

01347211

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U31402AP1999PLC032257	AMARA RAJA ELECTRONICS LIMITED	Director	31/10/2000	31/10/2000	-	Active	NO
2	U15122AP1990PLC011932	MANGAL INDUSTRIES LIMITED	Director	31/10/2002	31/10/2002	-	Active	NO
3	U31102AP1984PLC005165	AMARA RAJA POWER SYSTEMS LIMITED	Director	31/10/2002	31/10/2002	-	Active	NO
4	U15134AP2004PLC042852	GALLA FOODS LIMITED	Director	22/11/2004	22/11/2004	-	Amalgamated	NO
5	L31402AP1985PLC005305	AMARA RAJA BATTERIES LIMITED	Director	22/06/2007	22/06/2007	14/08/2008	Active	NO

Name :

Dr. Upendranath Nimmagadda

Designation :

Director

Address :

400E, Randolph Street, No.3029, Chicago, Illinois, USA 60601

Date of Birth/Age :

01.09.1942

Qualification :

MD

Date of Appointment :

16.08.2006

DIN No.:

00613289

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L72900MH1989PLC131521	FINE-LINE CIRCUITS LIMITED	Director	10/05/1991	10/05/1991	-	Active	NO
2	L23100KA1986PLC008037	MICRO ENERGY (INDIA) LIMITED	Director	27/11/1995	27/11/1995	-	Active	NO
3	U65993AP1999PLC031684	COASTAL LOCAL AREA BANK LIMITED	Director	26/06/2004	26/06/2004	28/03/2008	Active	NO
4	U55101AP2006PTC050438	KAVI RESORTS PRIVATE LIMITED	Director	05/07/2006	05/07/2006	-	Active	NO
5	U31102AP1984PLC005165	AMARA RAJA POWER SYSTEMS LIMITED	Director	16/08/2006	16/08/2006	-	Active	NO

Name :

Mr. Prasad Chandrika

Designation :

Director

Address :

Plot No.B-71, Sector-51, Noida, Uttar Pradesh, India

Date of Birth/Age :

15.01.1941

Qualification :

BSC Engineering and Electrical

Date of Appointment :

21.06.2005

DIN No.:

00143165

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U74999DL2002PTC116074	PRASAD NAYANTARA CONSULTANCY SERVICES PRIVATE LIMITED	Director	03/07/2002	03/07/2002	Active	NO
2	U31102AP1984PLC005165	AMARA RAJA POWER SYSTEMS LIMITED	Director	21/06/2005	21/06/2005	Active	NO
3	U45203DL2005PTC140818	PNCS INFRASTRUCTURE DEVELOPMENT PRIVATE LIMITED	Director	15/09/2005	15/09/2005	Active	NO

Name :

Mr. Muttuluri Narasimhappa

Designation :

Director

Address :

B Block, Plot No. 501, Srinilaya Asian manor Apartments, Road No. 2, Banjara Hills, Hyderabad – 500034, Andhra Pradesh, India

Date of Birth/Age :

06.08.1949

Qualification :

M.A.(Economics)

Date of Appointment :

21.03.2011

DIN No.:

03319847

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U45200AP2005PTC047097	VIJAY NIRMAN COMPANY PRIVATE LIMITED	Director	12/09/2011	06/12/2010	Active	NO
2	U31102AP1984PLC005165	AMARA RAJA POWER SYSTEMS LIMITED	Director	24/08/2011	21/03/2011	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 24.08.2011

Names of Shareholders	No. of Shares
Vikramaditya	30000
Harshavardhana	30000
G.V.R.K. Prasad	30000
Ramadevi G.	171300
Ramachandra N. Galla	434700
Amara Kumari Galla	93300
Jayadev Galla	348000
B. Gnana Prakash	21000
B. Radhakrishna Naidu	6000
M. Latha	10500
Bhimalamma	10500
P. Ramachandran	10800
L. Kannaiah Naidu	1500
L.V. Babu	750
L. Saraswathamma	1500
L.T.V. Kumar	750
V. Raghuram	7500
Upendranath Nimmagadda	30000
Upendranath Nimmagadda	92700
Usharani Nimmagadda	92700
Krishnaradha Chunduri	46800
Krishna P. Reddy	28200
Chunduri Satyananda Sinha	23100
Chunduri Durgarani	23100
Velagapudi Kanta Prasad	18600
Padmini Naidu Athuluri	13500
Damodara Naidu	13500
Durgaprasad Rao Kanuri	13500
Ramakrishna Nadella	11400
Nagamani P. Nadella	11400
Jayaram K. Naidu	9300
Athota Jagadishchandra Prasad	9300
Gurramkonda Munaswamy Naidu	9300
Durganageshwara Rao Kaza	9300
Suresh Nadella	9300
Lokanadham Gummidiyala	9300
Devarajulu N. Katta and Aruna N. Katta	36900
G.N. Naidu	13500
Total	1732800

AS ON 24.08.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	30.28
Directors or relatives of directors	65.63
Others	4.09
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Magnetics, Design and Development of Power Electronic Products and Integration and Testing of Power Electronics Systems.

Products :

ITC Code	Product Descriptions
850440-10	Inverter and Rectifier
850440-30	Battery Chargers

PRODUCTION STATUS AS ON (31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Battery Chargers	(Nos.)	No license is required under the existing policy	Unit quantification not possible since it comprises varied Items	1411

GENERAL INFORMATION

Customers :

Ø ABB

Ø BSNL

Ø Reliance

Ø Aditya Birla Group

Ø BPL Mobile

Ø Siemens

Ø Ericsson

Ø Motorola

Ø Alstom

Ø Gail

Ø TATA

Ø Airtel

Ø Nokia

Ø Indian Oil

Ø Vodafone

Ø Areva

No. of Employees :

Not Available

Bankers :

Andhra Bank, Main Branch, Beri Stree, Tirupati – 517501, Andhra Pradesh, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Working capital loans banks secured	130.033	79.706
Loans taken for vehicles secured	0.212	0.738
Total	130.245	80.444
Note: Amount in Rs. From Andhra Bank Rs. 74437506 Add: From State Bank of India Rs. 55595739 Total Rs. 130033245
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee term loans banks unsecured	89.000	0.000
Deferred sales tax loan unsecured	11.674	11.674
Total	100.674	11.674

Banking Relations :	--
Auditors :
Name :	E. Phalguna Kumar and Company Chartered Accountants
Address :	599/2, Balaji Colony, Tirupati – 517502, Andhra Pradesh, India
Income-tax PAN of auditor or auditor's firm :	AABFE1485A
Enterprises in which key Management Personnel and/or their relatives have significant influence:	Ø Amara Raja Batteries Limited Ø Amara Raja Electronics Limited Ø Mangal Precision Products Limited Ø Galla Foods Limited Ø Amara Raja Infra Private Limited Ø Amara Raja Industrial Services Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2,000,000	Equity Shares	Rs. 10/- each	Rs. 20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,732,800	Equity Share	Rs.10/- each	Rs. 17.328 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		17.328	17.328	17.328
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		234.576	232.542	210.888
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		251.904	249.870	228.216
LOAN FUNDS
1] Secured Loans		130.245	80.444	91.596
2] Unsecured Loans		100.674	11.674	11.674
TOTAL BORROWING		230.919	92.118	103.270
DEFERRED TAX LIABILITIES		1.645	1.194	2.090
TOTAL		484.468	343.182	333.576
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		66.896	57.809	48.547
Capital work-in-progress		2.588	4.485	0.790
INVESTMENT		0.456	0.456	0.456
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	207.233	65.246	95.360
	Sundry Debtors	540.816	416.646	376.128
	Cash & Bank Balances	20.928	13.549	16.318
	Other Current Assets	0.607	0.551	0.000
	Loans & Advances	60.610	133.532	118.223
Total Current Assets		830.194	629.524	606.029
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	360.114	176.663	180.002
	Other Current Liabilities	43.063	49.237	33.434
	Provisions	12.489	123.192	108.810
Total Current Liabilities		415.666	349.092	322.246
Net Current Assets		414.528	280.432	283.783
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		484.468	343.182	333.576

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	900.432	817.810	846.761
		Other Income	1.583	10.877	2.052
		TOTAL (A)	902.015	828.687	848.813
Less	EXPENSES
		Consumption materials changes inventories	618.385	528.692
		Manufacturing service costs	7.387	9.334
		Employee related expenses	127.507	104.794
		Administrative selling other expenses	108.655	112.966
		Research development expenditure	11.105	10.860
		TOTAL (B)	873.039	766.646	785.605
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		28.976	62.041	63.208
Less	FINANCIAL EXPENSES (D)		14.812	10.158	7.948
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		14.164	51.883	71.156
Less/ Add	DEPRECIATION/ AMORTISATION (F)		7.320	6.288	3.775
	PROFIT BEFORE TAX (E-F) (G)		6.844	45.595	74.931
Less	TAX (H)		4.810	13.803	30.041
	PROFIT AFTER TAX (G-H) (I)		2.034	31.791	44.890
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		208.847	190.372	165.176
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	3.179	4.489
		Dividend	0.000	8.664	12.996
		Tax on Dividend	0.000	1.473	2.209
				13.316	19.694
	BALANCE CARRIED TO THE B/S		210.881	208.847	190.372
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	2.556	6.399	21.866
	IMPORTS
		Raw Materials, Components and Spares	10.885	3.614	23.290
		Capital Items	2.476	0.091	0.000
	TOTAL IMPORTS		13.361	3.705	23.290
	Earnings Per Share (Rs.)		1.17	18.35	25.91

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.23	3.84	5.29
Net Profit Margin (PBT/Sales)	(%)	0.76	5.58	8.85
Return on Total Assets (PBT/Total Assets}	(%)	0.76	6.63	11.45
Return on Investment (ROI) (PBT/Networth)		0.03	0.18	0.33
Debt Equity Ratio (Total Liability/Networth)		2.57	1.77	1.86
Current Ratio (Current Asset/Current Liability)		2.00	1.80	1.88

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	Yes
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

OPERATIONS AND OUTLOOK

(I) Railway Sector

During the year, sales to Railway Sector witnessed good growth. The Company consolidated its position as a major player in the supply of IPS systems to Indian Railways garnering in excess of 50% market share.

The Company also exported a few systems to railway networks in neighboring countries. DSP based advanced digital inverter with improved features and communication facility was introduced in production this year. New products and value additions have been developed during the year at the instance of the customers and have been deployed for field trials before commercial production.

(II) Power Sector

During the year, Power Sector witnessed a slow recovery from last year's slow down. However though the projects have not picked up full speed, we performed better than last year in this sector.

The Company maintained a good market share in battery chargers and also picked up momentum in LT and C&R panels. The company received approvals from some of the key consultants. Approvals received for C&R panels from major utilities, which augurs well for future growth for this business. The high level of customization for the products in this sector continues to pose challenges and the Company is working towards product standardization.

The Company secured its major order from state electricity boards for the supply of various types of MCCs and PCCs for their projects. This was a significant start and our end product was very much appreciated by the end-user and project consultants.

The renewed focus on LT panels and introduction of Control & Relay panels will significantly increase the market share in the Power Control Sector.

Discussions are on with reputed Technology leaders for possible technology transfer & manufacturing of draw out panels and C&R panels to address the mid and high end customers. During the year 24V/50A modules have been successfully deployed at large Public sector corporations. 110V SMPS deployment has also been done.

The standardization of conventional chargers was completed this year and this is also being launched promising faster delivery to the customers which can become a game changer in the business. The company submitted commercial offer of power supply and battery for a prestigious project.

(III) Telecom Sector

During the year under report, the Company has successfully developed and tested some path breaking designs and products for Telecom Power Supplies. The company is optimistic that these developments will enable it to considerably increase its volumes of business with the Telecom Sector.

FINANCIAL PERFORMANCE

During the year the Company has achieved over 10% growth in the net sales, but the bottom-line was impacted seriously due to increase in overhead cost and new products development cost. The Company is taking various measures to improve profit margins and also improve collections. The Company is confident of reporting good profits in the year ahead. Consequent to lower profits the directors have decided not to declare dividend and conserve the resources for the expansion of its manufacturing facility to cater to the demands created in the new initiatives that are planned.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U31102AP1984PLC005165
Name of the company	AMARA RAJA POWER SYSTEMS LIMITED
Address of the registered office or of the principal place of business in India of the company	Ranigunta, Cuddapah Road, Karakambadi, Tirupati – 517520, Andhra Pradesh, India Email ID: amararajaj@amararaja.co.in
This form is for	Modification of charge
Charge identification number of the modified	90129482
Type of charge	Immovable Property Book Debts Movable Property Floating Charge
Particular of charge holder	Andhra Bank, Tirupati Main Branch, Tirupati – 517 501, Andhra Pradesh, India Email ID: bmtrp559@andhrabank.com
Nature of description of the instrument creating or modifying the charge	1. Composite agreement agreement dated 18.07.2011 2. Counter guarantee form dated 18.07.2011 and 3. Equitable mortgage dated 18.07.2011
Date of instrument Creating the charge	18.07.2011
Amount secured by the charge	Rs. 187.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest OCC- Base rate [10.25%] + 3.00 %(spread)-13.25% p.a. Base rate is subject to change from time to time Terms of Repayment Repayable on demand Margin Stocks - 25% Book debts -25% ILC/FLC-5% BG- 5% Extent and Operation of the charge This charge will be treated as modified charge to the extent of pari-passu first charge on entire current assets and fixed assets of the Company along with SBI, Settipalli branch and to secure the enhanced limit of Rs.187.000 Millions from Andhra Bank as detailed hereunder : 1. Open cash credit : 100.000 Millions [occ limit without any sub limit against book debt] 2.LC limit : 12.000 Millions 3.BG limit :75.000 Millions
Short particulars of the property charged	Pari passu first charge on current assets of the company along with SBI, Settipalli Pari passu first charge on fixed assets of the company along with SBI, Settipalli Industrial land in Survey No 153/1 of Karakambadi Village , Renigunta mandal, Chittoor District to an extent of 10.00 acres.
Date of latest modification prior to the present modification	24.03.2010
Particulars of the present modification	By this modification overall limit has been enhanced from Rs.162.000 Millions to Rs.187.000 Millions as mentioned hereunder : 1. Open cash credit : 100.000 Millions [occ limit without any sub limit against book debt] 2.LC limit : 12.000 Millions 3.BG limit :75.000 Millions

CONTINGENT LIABILITIES NOT PROVIDED FOR

(Rs. in millions)

Particulars	31.03.2011	31.03.2010
1. Estimated amount of contractors remaining to be executed on Capital account and not provided for	0.733	0.202
2. Other money for which the company is contingently liable
A. The following disputed taxes are not provided in the books
a. Sales tax	5.944	14.242
b. Amounts paid under protest against the above	4.037	7.925
B. The following bank guarantees /LC given by banks on behalf of the Company to customers are outstanding as on the date of Balance Sheet
a. LC given to different vendors	51.670	13.309
b. BG given to various customers	91.796	81.378

FIXED ASSETS:

Ø Land and Land Development

Ø Buildings

Ø Plant and Machinery

Ø Electrical Installation

Ø Furniture and Fixture

Ø Vehicles

Ø Computers

Ø Office Equipments

Ø Intangible Assets

WEBSITE DETAILS

PROFILE:

Subject part of a $400 million conglomerate is one of the India’s largest manufacturers of power control equipments. This ISO 9001 company with a reputation for trustworthiness and reliable power electronic products gives maximum value to the consumer. The customers ranging from Africa and Middle East to south East Asia ratify the international satisfaction that the company has been able to deliver.

Subject is a pioneer in design and manufacture of Power Electronics and Electrical Transmission and Distribution Products supplied in India and to the other parts of the world. The company has technical collaborations with industry leaders M/s HDR Power Systems Inc USA for Thyristor based chargers and with M/s Rectifier Technologies, Australia for the Switch Mode Power Supplies. Efforts have been taken to fully absorb and indigenize the technologies.

Leading consultants in India and abroad such as MN Dastur, IDEAS, MECON.AVANT GARDE, NTPC, EIL, PGCIL and TEC have ratified the wide acceptance of the company’s products, designs and services for various applications. An ISO-9001 certification in 1999 established that the manufacturing facility and quality management system of ARPSL met international standards.

A significant achievement of ARPSL is the installation of SMPS based Integrated Power Supply for S&T applications for Indian Railways and obtaining RDSO approval in 2000 for this system. Since then ARPSL has been the preferred supplier of IPS.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 52.33
UK Pound	1	Rs. 84.30
Euro	1	Rs. 67.45

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		43

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

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.