MIRA INFORM REPORT

Report Date :

17.10.2012

IDENTIFICATION DETAILS

Name :	MAHARASHTRA STATE ELECTRICITY DISTRIBUTION COMPANY LIMITED
Registered Office :	Prakashgad Plot No. G-9, Anant Kanekar Marg, Bandra (East), Mumbai – 400 051, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	31.05.2005
Com. Reg. No.:	11-153645
Capital Investment / Paid-up Capital :	Rs.30000.500 Millions
CIN No.: [Company Identification No.]	U40109MH2005SGC153645
TAN No.: [Tax Deduction & Collection Account No.]	PNEE00582B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Distribution of Electricity
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 215000000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Exists
Comments :	Subject is a State Government Company engaged in distribution of electricity. It is an established company having satisfactory track. The creditors and lenders can be confident of their exposures in the company. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

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

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.

INFORMATION DENIED

Management non co-operative (91-22-26470953)

LOCATIONS

Registered Office / Head Office:	Prakashgad Plot No. G-9, Anant Kanekar Marg, Bandra (East), Mumbai – 400 051, Maharashtra, India
Tel. No.:	91-22-26474211/ 26470953/26472131
Fax No.:	91-22-26476749/ 26470953
E-Mail :	cs@mahadiscom.in
Website :	www.mahadiscom.in

DIRECTORS

As on: 26.09.2011

Name :	Mr. Ajoy Mehta
Designation :	Managing Director
Address :	A/7, Saudamini Haji Ali, Mumbai – 400034, Maharashtra, India
Date of Birth/Age :	21.09.1959
Date of Appointment :	28.05.2010
DIN No. :	00155180
Name :	Mr. Dattatraya Dharmaji Wavhal
Designation :	Director
Address :	14/601, Flower Valley Complex Eastern Express Highway, Khopat Thane West, Mumbai – 400601, Maharashtra, India
Date of Birth/Age :	06.12.1957
Date of Appointment :	20.08.2012
DIN No. :	02767994
Name :	Mr. Maruti Kishanrao Deore
Designation :	Director
Address :	Flat No. 1, Ground Floor, Vidyut Nirmal Niwal, Devidyal Road, Mumbai-400080, Maharashtra, India
Date of Birth/Age :	24.01.1956
Date of Appointment :	16.07.2012
DIN No. :	02780312
Name :	Mr. Prakash Vithal Page
Designation :	Director
Address :	131, Poornanand Walkeshwar Road, Malabar Hill, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	18.09.1953
Date of Appointment :	02.01.2009
DIN No. :	00096443
Name :	Mr. Ashok Rajaram Harane
Designation :	Director
Address :	B-302, Millennium Gardens 182, Upper Govind Nagar, Malad (East), Mumbai – 400097, Maharashtra, India
Date of Birth/Age :	04.06.1946
Date of Appointment :	02.01.2009
DIN No. :	00123013
Name :	Mr. Sitaram Kunte
Designation :	Additional Director
Address :	Dept of IE and L, Mantralaya, Mumbai, Maharashtra, India
Date of Birth/Age :	03.11.1961
Date of Appointment :	09.08.2011
DIN No.:	02670899

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 26.09.2011

Names of Shareholders	No. of Shares
Staram J Kunte (Principal Secretary) Energy Nominee of GOM	49940
Subrat P. Ratho M. D. of MSEBHCL	10
Gulabsingh. J. Girase (Nominee of GOM.)	10
Kunda A. Rethrekar (Nominee of GOM)	10
D. K. Kharat (Nominee of GOM.)	10
C. K. Jadhav (Nominee of GOM.)	10
L. N. Sadafule (Nominee of GOM.)	10
MSEB Holding Company Limited, India	3000000000
Total	3000050000

As on: 11.09.2012

List of Allottee	No. of Shares
MSEB Holding Company Limited, India	2316931800
Total	2316931800

Equity Share Break up (Percentage of Total Equity)

As on: 26.09.2011

Category	Percentage
Government [Central and State]	99.98
Government companies	0.02
Total	100.00

BUSINESS DETAILS

Line of Business :

Distribution of Electricity

GENERAL INFORMATION

No. of Employees :

Information denied by management

Bankers :

· IDBI Bank Limited

· DCC Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Loans and Advances from Banks
Term Loan from DCC. Bank (Secured by existing fixed assets and escrow of revenue ) (Repayable within one year Rs.566.235 millions)	3380.985	2575.000
Overdrafts from Banks for working capital (Secured by Book Debts)	19000.000	14000.000
Other Loans and Advances
Loan from Rural Electrification Corp. (Secured by GoM guarantee, escrow of revenue and 1st charge of future assets) (Repayable within one year Rs.4265.864 millions)	43972.522	31276.125
Power Finance Corporation (Secured by GoM guarantee, escrow of revenue and 1st charge of future assets) (Repayable within one year Rs.3267.725 millions)	29519.199	12046.479
Total	95872.706	59897.604
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
From Others
1 State Government Loans (Repayable within one year Rs.706.902 millions)	4475.357	5073.005
2 Interest Accrued and due on Government Loans	0.000	1002.090
3 Interest free Loan from MIDC for Elec Work	360.021	165.126
4 Financial Participation by Consumers' (Interest Bearing)	0.819	1.118
5 Refundable Capital Cost Deposits	1.857	3.281
6 Deposits collected to be refunded after eight years (without interest)	6.083	7.239
7 Financial Participation by consumers' (Interest Free)	18.176	40.985
8 Interest accrued and due on financial participation by consumers	2.248	2.343
Total	4864.561	6295.187

Banking Relations :	--
Financial Institutions:	Rural Electrification Corporation Limited, Core 4 Scope Complex, 7 Lodi Road, New Delhi – 110 003, India
Auditors :
Name 1 :	Borkar and Muzumdar and Company Chartered Accountants
Address :	235/237, Peninsula House, Dr. D N Road, Fort, Mumbai 400001, Maharashtra, India
PAN No.:	AAAFB3194J
Name 2 :	M P Chitale and Company Chartered Accountants
Address :	1^st Floor, Hamam House, Ambalal Doshi Marg, Fort, Mumbai - 400001, Maharashtra, India
PAN No.:	AAAFM2282Q
Holding Company :	· MSEB Holding Company Limited CIN No.: U40100MH2005SGC153649
Subsidiaries Company :	· Aurangabad Power Company Limited CIN No.: U40109MH2007SGC171852 Dhopave Coastal Power Limited (Upto 12.07.2010) CIN No.: U40108MH2007SGC168836
Co-Subsidiaries :	Maharashtra State Power Generation Company Limited Maharashtra State Electricity Transmission Company Limited
Subsidiary of Co-Subsidiaries :	Dhopave Coastal Power Limited (From 13.07.2010)

CAPITAL STRUCTURE

After: 26.09.2011

Authorised Capital : Rs.200000.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.30000.500 Millions

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
7500000000	Equity Shares	Rs.10/- each	Rs.75000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3000050000	Equity Shares	Rs.10/- each	Rs.30000.500 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		30000.500	0.500	0.500
2] Contribution from GoM/MSEB Holding Company Limited		16200.238	32630.125	32327.103
3] Reserves & Surplus		7735.178	17126.713	19739.566
4] (Accumulated Losses)		0.000	0.000	0.000
4] Equity from GoM towards Projects		0.000	4842.300	2078.000
NETWORTH		53935.916	54599.638	54145.169
LOAN FUNDS
1] Secured Loans		95872.706	59897.604	38344.128
2] Unsecured Loans		4864.561	6295.187	6113.337
TOTAL BORROWING		100737.267	66192.791	44457.465
DEFERRED TAX LIABILITIES		1056.919	0.000	0.000
TOTAL		155730.102	120792.429	98602.634
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		111932.505	74850.144	60213.113
Capital work-in-progress		41163.981	23437.385	19755.620
INVESTMENT		1653.986	1367.415	684.502
DEFERREX TAX ASSETS		0.000	3573.938	6593.850
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	8784.865	2878.937	1809.475
	Sundry Debtors	136725.460	117532.421	106271.290
	Cash & Bank Balances	5568.197	13738.648	5177.621
	Other Current Assets	28.697	22.806	87.500
	Loans & Advances	15101.148	14300.860	19509.096
Total Current Assets		166208.367	148473.672	132854.982
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	66140.798	46190.255	41042.643
	Other Current Liabilities	78553.436	65136.333	58642.592
	Provisions	20534.503	19583.537	21814.198
Total Current Liabilities		165228.737	130910.125	121499.433
Net Current Assets		979.630	17563.547	11355.549
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		155730.102	120792.429	98602.634

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
SALES
	Revenue Income	332375.061	276423.129	234830.603
	Other Income	12516.872	11462.805	13153.871
	Revenue Subsidy and Grants From GoM	280.500	4000.000	0.000
	TOTAL (A)	345172.433	291885.934	247984.474
EXPENSES
	Purchaser of power	289494.449	238419.520	206062.995
	Employee costs	20468.683	18380.658	23983.907
	Administration and general expenses	7461.325	8989.868	9162.734
	Other expenses	12393.036	15201.707	8193.992
	Net Prior period credits / charges	3106.517	1597.916	(251.432)
	TOTAL (B)	332924.010	282589.669	247152.196
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		12248.423	9296.265	832.278
FINANCIAL EXPENSES (D)		10813.028	9001.279	7879.018
PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1435.395	294.986	(7046.740)
DEPRECIATION/ AMORTISATION (F)		10674.666	8122.701	6467.711
PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(9239.273)	(7827.715)	(13514.451)
TAX (I)		5807.403	3020.012	(4493.378)
PROFIT/ (LOSS) AFTER TAX (G-I) (J)		(15046.676)	(10847.727)	(9021.073)
Contingency Reserve		290.000	290.000	270.000
PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(22595.536)	(11457.808)	(4221.399)
DEFERRED TAX ADJUSTMENT OF PREVIOUS PERIOD		0.000	0.000	2054.664
BALANCE CARRIED TO THE B/S		(37932.212)	(22595.536)	(114578.808)
Earnings Per Share (Rs.)
Basic		(5.11)	(222755.00)	(185821.00)
Diluted		(3.32)	(3.00)	(3.00)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(4.36)	(3.72)	(3.64)
Net Profit Margin (PBT/Sales)	(%)	(2.78)	(2.83)	(5.75)
Return on Total Assets (PBT/Total Assets}	(%)	(3.32)	(3.51)	(7.00)
Return on Investment (ROI) (PBT/Networth)		(0.17)	(0.14)	(0.25)
Debt Equity Ratio (Total Liability/Networth)		4.93	3.61	3.07
Current Ratio (Current Asset/Current Liability)		1.01	1.13	1.09

LOCAL AGENCY FURTHER INFORMATION

The Sundry Creditors details:

Rs. In Millions

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors
For purchase of power	60856.417	41038.142	37072.176
For capital supplies/works	3680.685	3256.844	637.585
For O and M supplies/works	1603.696	1895.269	3332.882
Total	66140.798	46190.255	41042.643

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	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	Yes
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

LITIGATION DETAILS
Bench:- Bombay
Stamp No:-	SAST/28387/2012	Failing Date:-	10/10/2012
Petitioner:-	M/S. Thoro Packaging Industries	Respondent:-	Maharashtra State Electricity Distribution Company Limited
Petn.Adv.:-	Vaibhav Patankar
District:-	Pune
Bench:-	Single
Status:-	Pre-Admission
Next Date:-	17/10/2012
Coram:-	Registrar (Judicial)
Act:-	Code of Civil Procedure 1908 Indian Partnership Act 1932 Indian Electricity Act, 1910

OPERATIONAL PERFORMANCE:

During the 6th year of operation, the Company had sold 71280 MUs of power, which has generated revenue of Rs. 33237.500 Millions.

However, after providing for Depreciation, Interest, Finance Charges and other debits there was a loss of Rs. 9239.300 Millions (before tax).

The Company continued its efforts to strengthen its distribution system and has established new sub-stations, augmented existing sub-stations sanctioning additional load during the year.

LOAD SHEDDING PROTOCOL

The Company has been experiencing significant growth in power consumption during last few years in its area of operations due to buoyancy in economy. The company is making all out efforts to meet the growing demand. However there still remains a gap in the peaking demand. In order to bridge this gap, the Company had purchased power from time to time and also tied up long term power purchases, wherever needed within the regulatory parameters and commercial prudence.

As a preventive measure and to maintain the demand-supply equilibrium, load shedding, as per the protocol and directives given by the MERC, was implemented upto Dec 2010. The planned load shedding was withdrawn from January 2011 onwards due to availability of sufficient power.

POWER PURCHASE:

During the year the company has taken a big leap in hiring up the long term power to ensure that the company will not have power shortage in future years.

The company executed PPA for 2600 MW under competitive bidding process case – 1, stage -2. and PPA for additional quantum of 125 MW is under process.

The power purchase agreements for power from Korba Unit-7, Mouda stage –II Vindhyachal Stage – V, Solapur, Lara, Dhurvaram, Khargone and Gadarwara Project are executed with NTPC.

The company endeavors to monitor the progress of all projects under PPA and demand pattern. To bridge the gap in supply and demand due to delay in some projects of Mahagenco and NTPC, a medium term tender was floated.

CONTINGENT LIABILITY:

(Rs. In Millions)

Particular	31.03.2011	31.03.2010
(a) j Bank Guarantees and Letters of Credit issued by bankers in favour of third parties	2000.000	2000.000
(bj Corporate Guarantee issued by the Company in favour of Banks/' Financial institutions for finance; raised by Companies under the same management.	Nil	Nil
(c) Claims against the Company not acknowledged as debts.	9829.600	4317.100
(d) Liability against capital commitments outstanding (net of advances)	8101.800	4082.900
(c) Disputed Duties / Tax Demands	28321.600	14657.500

Notes:

(i) The payment released to Datar Switchgear Limited from September 1998 is booked under head of account. "Amount recoverable from the contractors" (A/c Code 28.811) amounting to Rs.89.982 Millions up to 31st March 2000 being matter under dispute. Further, Datar Switchgear Limited has moved the matter before arbitration for their claims. As per the orders passed by arbitration, the erstwhile Maharashtra State Electricity Board (Hereinafter referred to as The Board) released some adhoc payment during 1999-2000. Similarly, claim of excess payment made by the Board was admitted by arbitration for hearing. However, an amount of Rs. 189.99 Millions was received from Datar Switchgear Limited towards refund against various O and M Circles. The interim award was passed by arbitration directing the Board to pay Rs. 91.300 Millions to Datar Switchgear Limited against a Bank Guarantee (BG) of Rs. 681 Millions. Accordingly, payment was released by the Board. But, Datar Switchgear Limited and their Banker have failed to renew B.G. and hence, the Board preferred an appeal in the High Court for contempt of Court due to non-renewal of B.G. and also asked for suspension of arbitration proceedings for having violated the arbitration award. Out of total B.G. amount of Rs. 68.100 Millions, Rs. 91.300 Millions was appropriated and for the balance amount of Rs. 56.800 Millions, B.G. was required. Datar Switchgear Limited. filed a civil suit bearing no. 858 of 2002 in the Pune Court against IDBI for obtaining this B.C. Arbitration award was passed on 18th June, 2004 against the Board for damages of Rs. 1859.800 Millions with interest @10% p.a. on Rs. 1790.000 lakh and Rs. 10.000 Millions towards cost of proceedings. An appeal bearing case no. 374/2004 was filed against the Arbitration Award date. 18th June, 2004 of Arbitration Tribunal in Bombay High Court (Single Bench). Further. Bombay High Court Single Bench passed the judgment on 3rd August, 2005 and set aside the Arbitration award. Further, Datar Switthgears Limited filed an Appeal bearing No.672/2005 on 26th August, 2005 against the order of Bombay High Court (Single Bench) dated 3rd August, 2005. Division Bench on 22^nd October 2008 has set aside the order passed by single bench and the case was remanded back again to Single Bench of Bombay High Court for adjudication in the arbitration petition No.374.2004. The Single Bench passed the judgment on 10th March, 2009 against MSEDCL. Subsequently justice passed the order on 31st March, 2009 directing MSEDCL to submit Bank Guarantee for Rs. 750.000 Millions on or before 6th April, 2009 to the prothonotary and Senior Master Bombay High Court. Accordingly, MSEDCL has submitted Bank Guarantee of Rs. 750.000 Millions on 4th April. 2009 to the Bombay High Court, Mumbai through Canara Bank, Fort, Mumbai.

MSEDCL filed an appeal before Division Bench on 2^nd May, 2009 against the order of the Single Bench. The division Bench granted interim stay subject to the Company depositing Rs. 1790.0000 lakh on or before 20^th June. 2009 and furnishing Bank Guarantee for balance amount of Rs. 650.000 Millions. An appeal was listed before Bombay High Court. Mumbai on 29^th, June, 2009. Further. MSEDCL has filed Special Leave Petition (SLP) with Hon. Supreme Court against the order of Division Bench on 15"" May, 2009. The Supreme Court granted stay up to 29th June, 2009 and modified the order of Division Bench Bombay. According, to modified order, MSEDCL was required to deposit Rs. 650.000 Millions with Bombay High Court and furnish Bank Guarantee for balance of Rs. 2000.000 Millions to Bombay High Court. Accordingly, MSEDCL has deposited amount and furnished Bank Guarantee to the prothonotary and Senior Master Bombay High Court, Mumbai on 19th June, 2009. The SLP is pending before Hon. Supreme Court. The Rs. 750.000 Millions as B.G. is refunded back to MSEDCL by Sr. Master Prothonotary of Bombay High Court, Mumbai.

The case (Appeal no. 166/09) is under process before Division Bench of Bombay High Court, Mumbai. Further, in the same matter the application No.9 and SLP No. 32916 of 2009 is listed before the Hon. Supreme Court.

(ii) The lease rent payment to M/s. Asian Electronics towards LTLMS panels installed by them has been stopped since June 2006, as LTLMS panels were not working. The dispute has been referred to Arbitrator by Asian Electronics and a claim of Rs. 1571.200 Millions has been lodged against the Company. The Company has lodged counter claim of Rs. 5023.100 Millions against Asian Electronics. The case is pending in the Arbitral Tribunal for hearing.

The inspection of documents of both the parties (i.e. MSEDCL and Asian Electronics Limited) has been completed. Further, application for interim relief filed by Asian Electronics and application filed by MSEDCL towards seeking bank guarantee for counter claim of Rs. 5023.100 Millions have been dismissed by Arbitral Tribunal.

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U40109MH2005SGC153645
Name of the company	MAHARASHTRA STATE ELECTRICITY DISTRIBUTION COMPANY LIMITED
Address of the registered office or of the principal place of business in India of the company	Prakashgad Plot No. G-9, Anant Kanekar Marg, Bandra (East), Mumbai – 400 051, Maharashtra, India E-mail: cs@mahadiscom.in
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	Rural Electrification Corporation Limited, Core 4 Scope Complex, 7 Lodi Road, New Delhi – 110 003, India E-mail: mlkumawat@recl.nic.in
Nature of instrument creating charge	Bulk Hypothecation Deed dated 24th August, 2012 between REC Limited and MSEDCL wherein MSEDCL has hypothecated as security its future movable properties/assets and stocks to the extent of 72.5% of the Future Assets in respect of the 84 R-APDRP Schemes covered under Loan Agreement for Rs. 8251.487 Millions dated 24.08.2012 as unencumbered hypothecated goods.
Date of instrument Creating the charge	24.08.2012
Amount secured by the charge	Rs.8251.487 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest The interest shall be charged on the loan @ annualized INBMK + 350bps with annual reset. The interest shall be payable quarterly by borrower till full loan amount along with other dues are paid to REC Terms of Repayment The period of moratorium period for repayment of the principal shall be 3 years from the 15th day of the month of disbursement of the first installment of the loan but the entire loan shall be repaid by the borrower within a period of 13 years from the date of disbursement of the first installment of the loan. Margin 25% Extent and Operation of the charge The MSEDCL has hypothecated and charged as security its future movable properties and its stocks of materials and equipments etc. to the extent of 72.5%of the future assets in respect of the 84R-APDRP Schemes covered under the loan agreement date 24.08.2012 between REC and MSEDCL as unencumbered hypothecated goods by way of pari passu basis along with PFC for the repayment of Loan to REC with interest, penal interest in case of late payments and other costs and charges in term bulk hypothecation deed date 24.08.2012.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	The Borrower (MSEDCL) has hypothecated and charged as security its future movable properties including movable machinery, equipments, machinery, machinery spares, tools, implements and accessories and its stocks of materials and equipments etc. to the extent of 72.5% of the future assets in respect of the 84 R-APDRP Schemes covered under the Loan Agreement dated 24.08.2012 between REC and MSEDCL as unencumbered hypothecated goods by way of pari passu basis along with PFC for the repayment of Loan to REC with interest, penal interest in case of late payments and other costs and charges in terms of the Bulk Hypothecation Deed between REC and MSEDCL dated 24.08.2012

Fixed Assets:

• Land and land flights
• Buildings
• Hydraulic works
• Other civil works
• Plant and machinery
• Lines and cable networks
• Vehicles
• Furniture and fixtures
• Office equipment

AS PER WEBSITE DETAILS:

Press Releases

MAHARASHTRA STATE ELECTRICITY DISTRIBUTION COMPANY LIMITED SENDS NOTICE TO PUNE MUNICIPAL CORPORATION FOR 'ILLEGAL' RESALE OF ELECTRICITY

May 28, 2012, 02.32AM IST

PUNE: The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has served a notice to the Pune Municipal Corporation (PMC) for illegal resale of electricity.

The notice, sent by the power company on May 23, has stated that an electricity connection was given to the PMC for running a kiosk, but the civic body transferred it to an ATM centre. Therefore, it has become an illegal transfer of electricity.

"While checking your electricity installation, it was observed that though the original connection was taken for commercial purpose, mainly pertaining to PMC activities, it is observed that you have given unauthorised electricity supply to the ATM, which is illegal, being resale of electricity," the notice given to PMC said.

The notice has given a deadline of 15 days to pay Rs 0.033 Million to the MSEDCL. The amount includes payment of electricity consumed at the ATM in the last one year and also a penalty. The notice also states that if the PMC fails to pay the bill, it will disconnect the power supply to the ATM.

Asked about the notice, Sunil Kesari, deputy commissioner of the PMC, said he will look into the matter.

"If the Kiosks are handed over to private operators, they are asked to take a separate electricity connections," he said.

He added that if any case of misuse of the PMC's electric connection is found, necessary action will be taken. "I'm yet to read the notice. Once it is done, what action has to be taken will be decided." he said.

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.52.82
UK Pound	1	Rs.84.96
Euro	1	Rs.68.61

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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		45

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	-

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