MIRA INFORM REPORT

Report Date :

26.10.2012

IDENTIFICATION DETAILS

Name :	FINOLEX J-POWER SYSTEMS PRIVATE LIMITED
Registered Office :	26/27, Mumbai - Pune Road, Pimpri, Pune – 411018, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.01.2008
Com. Reg. No.:	11-131238
Capital Investment / Paid-up Capital :	Rs.780.000 Millions
CIN No.: [Company Identification No.]	U31300PN2008PTC131238
TAN No.: [Tax Deduction & Collection Account No.]	PNEF01065B
PAN No.: [Permanent Account No.]	AABCF1868R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of High Voltage Power Cable.
No. of Employees :	40 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 3100000
Status :	Recently commenced business activities
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is a company having moderate track. Even though the subject was incorporated during January 2008, it commenced its business activities from October 2012. Networth of the company appears to be sound. Business is active. Payments terms are unknown. The company can be considered for business dealings with slight caution.

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 PARTED BY

Name :	Mr. Sunil Shetty
Designation :	Excise Officer
Contact No.:	91-20-27475963
Date :	25.10.2012

LOCATIONS

Registered Office / Factory :	26/27, Mumbai - Pune Road, Pimpri, Pune – 411018, Maharashtra, India
Tel. No.:	91-20-27475963
Fax No.:	91-20-27472239
E-Mail :	dsilva_rg@finolex.com sunil_shetty@finolexpower.com sales@finolex.com
Website :	www.finolexpower.com
Location :	Owned

DIRECTORS

As on 28.07.2011

Name :	Mr. Deepak Kishan Chhabria
Designation :	Director
Address :	329-331, Sindh Housing Society, Aundh, Pune – 411007, Maharashtra, India
Date of Birth/Age :	31.10.1962
Date of Appointment :	04.01.2008
DIN No.:	01403799
Name :	Mr. Mahesh Viswanathan
Designation :	Director
Address :	A-201, Runwal Spring Park, Off Baner Road, Pune – 411045, Maharashtra, India
Date of Birth/Age :	25.04.1960
Date of Appointment :	06.05.2009
DIN No.:	02780987
Name :	Mr. Gautam Kumar Banerjee
Designation :	Director
Address :	Flat No.102, Swasti Apartments, Road No.6, Kalyani Nagar, Pune – 411006, Maharashtra, India
Date of Birth/Age :	15.09.1956
Date of Appointment :	30.11.2010
DIN No.:	03276691
Name :	Fumio Yoshida
Designation :	Director
Address :	3-18-6, Kamata Ohta Ku, Japan 1440052
Date of Birth/Age :	06.02.1950
Date of Appointment :	28.03.2008
DIN No.:	02127830
Name :	Masataka Miyake
Designation :	Director
Address :	1-25-1-612. Nakoji Amagasaki City, Japan 6610974
Date of Birth/Age :	20.05.1959
Date of Appointment :	28.03.2008
DIN No.:	02127981
Name :	Yoshihiro Yoshihara
Designation :	Director
Address :	8-28-505, Nishioji-Cho, Kusatsu-Shi Shiugaken Japan 5250037
Date of Birth/Age :	10.11.1965
Date of Appointment :	30.11.2010
DIN No.:	03163050

KEY EXECUTIVES

Name :	Mr. Sunil Shetty
Designation :	Excise Officer
Name :	Mr. Mahesh Arvind Kulkarni
Designation :	Secretary
Address :	Flat No.9, Murlidhar Kunj Apartments, Lane No.10, Dahanukar Colony, Pune – 411038, Maharashtra, India
Date of Birth/Age :	23.09.1975
Date of Appointment :	09.11.2009
PAN No.:	APNPK9967L

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.07.2011

Names of Shareholders	No. of Shares
Finolex Cables Limited, India	38220000
J-Power Systems Corporation, Japan	39780000
Total	78000000

List of Allottees

As on 09.03.2012

Names of Allottees	No. of Shares Allotted
Finolex Cables Limited, India	9800000
J-Power Systems Corporation, Japan	10200000
Total	20000000

As on 28.07.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	51.00
Bodies corporate	49.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of High Voltage Power Cable.

Products :

Product Description	Item Code No.:
Extra High Voltage Power Cables Rating 66 kv to 500 kv	3610

Terms :

Selling :

Cash / Credit

Purchasing :

Cash / Credit

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

40 (Approximately)

Bankers :

Ÿ HDFC Bank, Pimpri Branch, Pune, Maharashtra, India

Ÿ State Bank of India, Industrial Finance Branch, Near Mariaai Police Chowky,Wakdewadi, Pune - 411003, Maharashtra, India

Ÿ Mizuho Corporate Bank Limited

Ÿ The Bank of Tokyo-Mitsubishi Ufj Limited

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans from banks	645.850	72.094
Interest accrued due	1.808	0.367
Total	647.658	72.461

Banking Relations :	--
Auditors :
Name :	S V Ghatalia and Associates Chartered Accountants
Address :	Pune, Maharashtra, India
PAN No.:	AACFS6921Q
Joint Venture :	Ÿ Finolex Cables Limited, India Ÿ J-Power Systems Corporation, Japan
Associates/Subsidiaries :	· Finolex Industries Limited

CAPITAL STRUCTURE

After 24.07.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
123000000	Equity Shares	Rs.10/- each	Rs.1230.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
98000000	Equity Shares	Rs.10/- each	Rs.980.000 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
78000000	Equity Shares	Rs.10/- each	Rs.780.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
78000000	Equity Shares	Rs.10/- each	Rs.780.000 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		780.000	580.000	400.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(16.904)	(12.630)	0.000
NETWORTH		763.096	567.370	400.000
LOAN FUNDS
1] Secured Loans		647.658	72.461	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		647.658	72.461	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1410.754	639.831	400.000
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		99.806	98.609	1.381
Capital work-in-progress		1150.889	370.326	158.697
Expenditure pending allocation		42.269	14.393	0.000
INVESTMENT		152.898	188.046	244.757
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	0.000	0.000	0.000
	Cash & Bank Balances	25.636	7.022	1.234
	Other Current Assets	0.620	0.099	0.000
	Loans & Advances	25.418	7.415	2.273
Total Current Assets		51.674	14.536	3.507
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	83.778	43.767	4.957
	Other Current Liabilities	2.479	2.098	1.545
	Provisions	0.525	0.214	1.840
Total Current Liabilities		86.782	46.079	8.342
Net Current Assets		(35.108)	(31.543)	(4.835)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1410.754	639.831	400.000

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	0.000	0.000	0.000
		Other Income	10.289	25.187	0.000
		TOTAL (A)	10.289	25.187	0.000
Less	EXPENSES
		Personal Expenses	14.289	4.272	0.000
		Operating and Other Expenses		8.526	0.000
		TOTAL (B)	14.289 (Including Financial Expenses and Deprecation)	12.798	0.000
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			12.389	0.000
Less	FINANCIAL EXPENSES (D)			0.000	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			12.389	0.000
Less/ Add	DEPRECIATION/ AMORTISATION (F)			0.159	0.000
	PROFIT BEFORE TAX (E-F) (G)		(4.000)	12.230	0.000
Less	TAX (H)		0.275	6.050	0.000
Less	PRIOR PERIOD ITEMS		0.000	18.810	0.000
	PROFIT AFTER TAX (G-H) (I)		(4.275)	(12.630)	0.000
	Earnings Per Share (Rs.)		(0.07)	(0.24)	0.00

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(41.55)	(50.14)	0.00
Net Profit Margin (PBT/Sales)	(%)	0.00	0.00	0.00
Return on Total Assets (PBT/Total Assets}	(%)	(2.64)	10.81	0.00
Return on Investment (ROI) (PBT/Networth)		0.00	0.02	0.00
Debt Equity Ratio (Total Liability/Networth)		0.96	0.21	0.02
Current Ratio (Current Asset/Current Liability)		0.60	0.32	0.42

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITOR DETAILS:

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors
- Small micro enterprises	0.000	0.000	4.957
- Others	83.778	43.767
Total	83.778	43.767	4.957

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

FINANCIAL RESULTS:

The Company is in the process of setting up its project to manufacture cross- linked polyethylene (XLPE) insulated power cables in Extra High Voltage (EHV) Class of 66kV to 500 kV, at Shirwal, Taluka Khandala, District Satara. The project implementation is at an advance stage, and the business operations are yet to commence.

PROJECT IMPLEMENTATION:

Project implementation has been delayed on account of construction delays that have been faced. Mainly, these delays were on account of:

1. Clearance from Defense and Airport Authority of India in respect of the height of the VCV Tower,

2. Non Availability of Manpower for construction a sharp increase in economic activity in the states of Bihar and Orissa, the overtures in Maharashtra against the workers and laborers from these states and other Northern and Eastern belt resulted in substantial exodus of the skilled manpower for civil activities. The Company's contractors have continuously faced short supply of manpower resource which caused the project progress to slowdown by almost 6-9 months,

3. Technology and site specific issue - While constructing the tower, the company faced many challenges right from the time of foundation and then as the height of construction started moving up, construction equipment deployed for taking the concrete at a height started breaking down resulting in development of specific equipments and mix which consumed lot of time and the work was held up on many occasions. Also wind pressure during casting made it almost impossible to work and the work was halted at times for days together to wait for slab casting. Further, the established construction methodology of slip form could not be used and the different methodology of raising tower through cast technology of 3 meters at a time was considered and adopted. This made the tower to be constructed at a rate of 40% than originally estimated.

The Company expects to complete the installation of VCV Line by December, 2011 and conduct the trial runs during January March, 2012.

All other machineries, except the VCV Line, will be installed by July 2011 and Trial runs are expected to commence in July/August, 2011.

BUSINESS OUTLOOK:

The future of EHV cable business in India continues to look favorable because of addition of power generation capacity through fast track projects in private as well as public sector. In the last financial year there was an increase of over 5% in electrical units generated in thermal plants and app. 8.5% in units generated in Hydel plants.

It is expected that there will be considerable growth in renewable energy sectors like Hydel power and Solar power installations. Consequently, The EHV cable demand in coming years is expected to be substantially higher because the power from additional generation capacity being installed now, will have to be evacuated for effective utilization at the load end.

On the other hand, the transmission utilities in metro cities have taken up major augmentation plan to bring stability in the power infrastructure of these cities. Many large cities are also expanding in size thereby reducing the availability of power corridor in and around them for overhead transmission lines. This is also resulting into a considerable demand for EHV cables in cities like Delhi, NCR, Mumbai, Pune, Chennai, Bangalore, Hyderabad, Kolkata and Ahmedabad.

CONTINGENT LIABILITIES NOT PROVIDED FOR

Custom Duty of Rs. 127.191 Millions (previous year Rs. NIL) payable by the Company on import of Capital Goods under EPCG Scheme 2009-14, in case the Company doesnt fulfill the export obligation over the period of 6 years from the dates of import. The Duty amount represents the Duty saved by the Company under the EPCG Scheme.

FIXED ASSETS:

Ÿ Freehold Land

Ÿ Computers

Ÿ Office Equipments

Ÿ Vehicles

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.53.63
UK Pound	1	Rs.86.18
Euro	1	Rs.69.75

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--RESERVES	1~10	2
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		31

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.