MIRA INFORM REPORT

Report Date :

06.04.2013

IDENTIFICATION DETAILS

Name :	MAHARASHTRA STATE POWER GENERATION COMPANY LIMITED
Formerly Known As :	MAHARASHTRA STATE ELECTRICITY BOARD
Registered Office :	Prakashgad, Plot No. G-9, Bandra (East), Mumbai-400051, Maharashtra.
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	31.05.2005
Com. Reg. No.:	11-153648
Capital Investment / Paid-up Capital :	Rs.25000.500 Millions
CIN No.: [Company Identification No.]	U40100MH2005SGC153648
TAN No.: [Tax Deduction & Collection Account No.]	NGPM03683B
PAN No.: [Permanent Account No.]	AAECM2935R
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Subject is a Government owned Organization, engaged in Power Generation Business.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

A (64)

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 230000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exits
Comments :	Subject is a state government company. It is a well established company having satisfactory track. The financial strength of the company is good and performance capability is high as per the available financials of 2011. The creditors and the lenders can be confident of their exposure in the company since it is government company. Trade relations are trustworthy. Business is active. Payments are reported to be regular. The company can be considered good for normal business dealings at usual trade terms and conditions. Note: We herby provide you the report with available details and we would provide you with a on the same company as soon as we get the additional information.

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	SHORT TERM RATING : PR1
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	14.06.2011

Rating Agency Name	CARE
Rating	LONG TERM RATING : A-
Rating Explanation	Adequate degree of safety and low credit risk.
Date	14.06.2011

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 (GENERAL DETAILS)

Name :	Ms. Varsha
Designation :	Accounts Department
Contact No.:	91-22-26474211
Date :	05.04.2013

LOCATIONS

Registered Office :	Prakashgad, Plot No. G-9, Bandra (East), Mumbai-400051, Maharashtra, India.
Tel. No.:	91-22-26474524 / 2647 4211
Fax No.:	91-22-26475749 / 2647 5454
E-Mail :	cs@mahagenco.in cgmfa@mahagenco.in csmahagenco@gmail.com
Website :	http://www.mahagenco.in
Location :	Owned

DIRECTORS

AS ON 16.09.2011

Name :	Mr. Chandrakant Satwaji Thotwe
Designation :	Director
Address :	301 MSEB Colony, Bandra Kurla Complex, Bandra (East), Mumbai, Maharashtra, India
Date of Birth/Age :	14.08.1962
Date of Appointment :	29.08.2009
DIN No.:	01572936
Name :	Mr. Prakash Vithal Page
Designation :	Director
Address :	131 Poornanand, Malabar Hills, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	18.09.1953
Date of Appointment :	01.12.2008
DIN No.:	00096443
Name :	Mr. Manikrao Ganpatrao Waghmode
Designation :	Director
Address :	Saudamini Building, Haji Ali, Mahalaxmi, Mumbai, Maharashtra, India Mumbai
Date of Birth/Age :	05.05.1953
Date of Appointment :	11.03.2011
DIN No.:	03405474
Name :	Mr. Vidyadhar Krishnaji Kanade
Designation :	Director
Date of Birth/Age :	01.10.1955
Date of Appointment :	18.11.2011
Name :	Mr. Asheesh Sharma
Designation :	Managing Director
Name :	Mr. S. A. M. Naqvi
Designation :	Director
Name :	Mr. V. P. Singh
Designation :	Director
Name :	Mr. V. S Patil
Designation :	Director
Name :	Mr. Jai Kumar Srinivasan
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Ajit Anantrao Pawar
Designation :	Energy Minister Chairman
Name :	Mr. Vijay Namdeorao Wadettiwar
Designation :	Minister of State for Energy, Vice Chairman
Name :	Mr. Ajoy Mehta
Designation :	Director(Finance)
Name :	Mr. S. B. Waghmare
Designation :	Executive Director (HR)
Name :	Mr. S. P. Rekhade
Designation :	Executive Director(Gen O & M-I )
Name :	Mr. V. S. Patil
Designation :	Executive Director (SPGD)
Name :	Mr. Jaikumar Srinivasan
Designation :	Executive Director (Finance & Commercial)
Name :	Mr. V. P. Singh
Designation :	Executive Director (Project-I )
Name :	Ms. Varsha
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 16.09.2011

Names of Shareholders	No. of Shares
S J Kunte Nominee Government of Maharashtra	49940
Subrat Ratho Nominee Government of Maharashtra	10
Gulabsingh Girase (Nominee GOM)	10
C K Jadhav (Nominee GOM)	10
MSEB Holding company Limited, Fort, Mumbai, Maharashtra, India	2500000000
D K Kharat (Nominee GOM)	10
L N Sadafule (Nominee GOM)	10
K A Retherekar (Nominee GOM)	10
TOTAL	2500050000

AS ON 16.09.2011

Equity Share Breakup		Percentage of Holding
Category
Government [Central and State]		0.01
Government Companies		99.99
	Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is a Government owned Organization, engaged in Power Generation Business.
Terms :
Selling :	Credit
Purchasing :	Credit

PRODUCTION STATUS

(As On 31.03.2011)

Particulars	Installed Capacity @ Installed (In MW)	Production/ Generation (In Million KWH ) * @
Hydro	2335	4656
Thermal	6730	36743
Gas	672	5457
Solar	1	1.23

Note:

@ As certified by the Chief Engineer (Works) and being a technical matter accepted by the Auditors as correct. The Installed Capacity for Thermal Units for FY 2010-11 is derated by 70MW. The installed capacity for Hydro Units for FY 2010-11 has decreased by 9 MW. The installed capacity for Gas Unit for FY 2010-11 has decreased by 180MW. During the year MSPGCL has newly commissioned 1 MW Solar Power Project at Chandrapur. Further, with effect from December 2010, MSPGCL has closed following Units. Bhusawal – 1 (62.50 MW), Koradi-1 to 4 - (480 MW), Paras -2 (62.50 MW) and Parli (1 and 2) – (60 MW)

*Including auxiliary consumption of 4,118 Million Units (PY 4,449 Million Units)

GENERAL INFORMATION

Customers :

End Users

· MSCDCL

· Lloyds Steel Industries Limited

· Purti Power and Sugar Limited

· Abhijeet MADC Nagpur Energy Private Limited

· Ashok Leyland Limited

· Raymond Limited

· Jayaswal Neco Industries Limited

· Narayani Electrical and Mechanical Industries

· Dinshaw’s Dairy Foods Limited

· Vishvas Power Engineering Services Private Limited

· Mineral Exploration Corporation Limited

· NTPC Limited

· SPANCO Limited

· ABB Limited

No. of Employees :

Information declined by the management

Bankers :

Bank of India, Mumbai Large Corporate Branch, 4^th Floor, BOI Building, 70-80 MG Road, Mumbai – 400 001, Maharashtra

Tel No.: 91-22-26501149

Financial Institute:

Rural Electrification Corporation Limited, Core 4 Scope Complex, 7 Lodi Road, New Delhi 110003, India

Facilities :

Secured Loans :	31.03.2011 Rs. in Millions	31.03.2010 Rs. in Millions
Short Term Loan (Amount repayable within one year Nil (PY Rs.300Crores)	0.000	3000.000
Mid term and Long Term Loan (Amount repayable within one year Rs.195.500 million)	1101.838	1426.320
Working capital loan - (Bank Overdraft)	11331.957	11352.771
From Others From Power Finance Corporation Limited (Amount Repayable within one year Rs.4975.200 millions)	52036.197	46351.544
From Rural Electrification Corporation Limited (Amount Repayable within one year Rs.3353.100millions)	52815.179	30973.979
Total	117285.171	93104.614

Banking Relations :	--
Auditors :
Name :	CVK and Associates Chartered Accountants
Address :	2 Samarth Apartments, D S Babrekar Road, Dadar West, Mumbai 400028, Maharashtra, India
Statutory Auditors 1 :
Name :	G M Kapadia Chartered Accountants
Address :	36 B Tamarind House, Tamarind Lane Fort, Mumbai 400001, Maharashtra, India
Statutory Auditors 2 :
Name :	K. S. Aiyar and Company Chartered Accountants
Address :	Shakti Mills Lane, Off Dr. E .Moses Road, Mahalaxmi, Mumbai - 400 011, Maharashtra, India
Cost Auditors 1 :
Name :	N. I. Mehta Company Chartered Accountants
Cost Auditors 2 :
Name :	S. R. Bhargave and Company Chartered Accountants
Holding Company :	· MSEB Holding Company Limited CIN No.: U40100MH2005SGC153649
Subsidiaries :	· Mahagunj Collieries Limited CIN No.: U10102MH2006SGC165327 · Dhopave Coastal Power Limited CIN No.: U40108MH2007SGC168836 · Dhule Thermal Power Company Limited CIN No.: U40105MH2007SGC173433

CAPITAL STRUCTURE

After 16.09.2011

Authorised Capital : Rs.250000.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.51408.467 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000000	Equity Shares	Rs.10/- each	Rs.50000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2500050000	Equity Shares	Rs.10/- each	Rs.25000.500 Millions

Note: Out of the above 2500000000 shares are held by MSEB Holding Company Limited and balance 50000 shares are held by nominees on behalf of Government of Maharashtra.

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		25000.500	25000.500	25000.500
2] Share Capital Suspense A/C		633.633	633.633	633.633
3] Share Application Money Pending Allotment		22331.367	16312.667	9640.000
4] Reserves & Surplus		9721.919	6627.351	4593.367
5] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		57687.419	48574.151	39867.500
LOAN FUNDS
1] Secured Loans		117285.171	93104.614	85388.071
2] Unsecured Loans		46444.490	36775.303	2214.252
TOTAL BORROWING		163729.661	129879.917	87602.323
DEFERRED TAX LIABILITIES		8189.241	5008.079	3839.237
TOTAL		229606.321	183462.147	131309.060
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		86998.614	59589.339	60986.104
Capital work-in-progress		119298.517	103532.073	61135.940
Assets Retired Form Active Use and Held for Sale		1095.122	0.315	0.000
INVESTMENT		1.600	1.100	1.600
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	12733.677	10878.902	8254.256
	Sundry Debtors	50643.351	32408.577	26863.957
	Cash & Bank Balances	434.134	2162.111	1901.814
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	39369.785	64207.444	58489.122
Total Current Assets		103180.947	109657.034	95509.149
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	35388.866	59148.580	70314.464
	Other Current Liabilities	36552.570	23810.065	10122.412
	Provisions	9027.043	6359.069	5886.857
Total Current Liabilities		80968.479	89317.714	86323.733
Net Current Assets		22212.468	20339.320	9185.416
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		229606.321	183462.147	131309.060

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	121150.080	110832.506	93464.936
		Other Income	1051.820	1032.889	1326.386
		TOTAL (A)	122201.900	111865.395	94791.322
Less	EXPENSES
		Cost of fuel	82817.316	83130.207	71562.499
		Generation, administration and other expenses	12233.777	11324.139	8749.339
		Employees costs	8705.599	5566.867	6301.210
		Prior Period (Credits)/charges (net)	(110.604)	191.587	(108.125)
		TOTAL (B)	103646.088	100212.800	86613.048
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		18555.812	11652.595	8178.274
Less	FINANCIAL EXPENSES (D)		6574.331	4698.813	4483.525
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		11981.481	6953.782	3694.749
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3981.266	3009.423	3075.329
	PROFIT BEFORE TAX (E-F) (G)		8000.215	3944.359	619.420
Less	TAX (H)		4905.648	1910.375	(221.532)
	PROFIT AFTER TAX (G-H) (I)		3094.567	2033.984	840.952
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		6627.351	4588.992	3739.290
Add/ Less	TRANSFERRED TO/FROM DEBENTURE REDEMPTION RESERVE		0.000	4.375	8.750
	BALANCE CARRIED TO THE B/S		9721.918	6627.351	4588.992
	IMPORTS
		Components and spare parts	5.266	13.032	216.634
		Capital Good	0.000	2160.802	0.000
	TOTAL IMPORTS		5.266	2173.834	216.634
	Earnings Per Share (Rs.)		0.68	0.55	1.35

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.53	1.81	0.89
Net Profit Margin (PBT/Sales)	(%)	6.60	3.55	0.66
Return on Total Assets (PBT/Total Assets}	(%)	4.20	2.33	0.40
Return on Investment (ROI) (PBT/Networth)		0.13	0.08	0.02
Debt Equity Ratio (Total Debt/Networth)		2.84	2.67	2.20
Current Ratio (Current Asset/Current Liability)		1.27	1.22	1.11

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors
For Capital Expenditure
- Due to Micro, Small and Medium Enterprises	0.000	0.000
- Due to Others	2187.528	1765.456
For Goods and Services
- Due to Micro, Small and Medium Enterprises	0.000	0.000
- Due to Others	33201.338	57383.124
Total	35388.866	59148.580	70314.464

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	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	Yes
19]	Payments terms	Yes
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	Yes

DETAILS OF UNSECURED LOANS:

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010
PFC loans backed by GOM guarantee	6784.614	8727.302
From Banks - Short Term Loan (Amount Repayable within one year Rs. 29550 millions)	29550.000	19500.000
Term Deposit MMRDA (Amount Repayable within one year Rs. 1000 millions)	1000.000	1000.000
Project Specific Short Term Loan from Banks (Amount Repayable within one year Rs. 7370 millions)	7370.000	5650.000
Term Loans from State Government (Amount repayable with in one year Rs.474.400 millions)	1739.876	1898.001
Total	46444.490	36775.303

LITIGATION DETAILS
Bench:- Bombay
Stamp No:-	WPST/8038/2013	Failing Date:-	13.03.2013	Reg. No.:-	WP/3042/2013	Reg. Date:-	22.03.2013
Petitioner:-	TRIMURTI INDUSTRIES, THROUGH PARTNER		Respondent:-	MAHARASHTRA STATE POWER GENERATION COMPANY LIMITED
Petn. Adv.:	JAYANKAR AND PARTNERS
District:-	NASHIK
Bench:-	DIVISION
Status:-	Pre-Admission
Next Date:	29.04.2013		Stage:-
Coram:-	According to sitting list According to sitting list
Act:	Environment protection Act 1986

FINANCIAL PERFORMANCE:

Total Income of the company for the year increased by 9.24 % to Rs 122201.901 millions from Rs 111865.395 millions during the previous year. The Profit after tax but before prior period adjustments has gone up to Rs 2983.964 millions from Rs 2225.572 millions. The Net profit after tax has gone up to Rs 3094.568 millions from Rs 2033.984 millions up 52 % over last year.

OPERATIONAL PERFORMANCE:

The total Installed Capacity of Mahagenco is 10017 MW and derated capacity is 9987 MW as on 31st March 2011. Parli-7(250 MW) COD from 31-07-10. Paras-4 (250 MW) COD from 31-08-10. Uran units 2 to 4 (3*60 MW) retired w.e.f. 16-11-10, Bhusawal U-1 (62.5/50 MW), Paras-2 (62.5/55 MW) and Parli 1 and 2 (2*30/2*20 MW) retired and closed w.e.f. 15.12.10, 16.11.10, 15.12.10 and 11.12.10 respectively. Ghatghar U-2 (125 MW) handed over to Mahagenco from 03-01-11. Koradi U-1 to 4 (4*120/4*105 MW) closed w.e.f. 07-01-11. Veer (9MW) handed over to GoM from 01-06-10. During the year 2010-11, for coal-fired plants, the average availability factor was 81.64% as against 88.40% of last year. The plant load factor was 61.23%. The overhaul of 17 units was taken up during 10-11 as against overhaul of 18 units during 09-10. The planned outage and forced outage factor for the year 10-11 were 5.41% and 5.07% as against 5.82% and 5.78% for 2009-10. For gas based plants, average availability was 97.16% and PLF was 80.06%.

The other operational performance factors are as below:-

The Realization of Coal for the year 2010-11 was 86.00% as against 89.49% of previous year. Specific coal consumption for the year 2010-11 was 0.852 Kg/ Kwh as against 0.826 Kg/ Kwh of last year. The Boiler tube leakage percentage for the year 2010-11 was 2.55% as against 3.02% of last year. Specific oil consumption for the year 2010-11 was 5.75 ml/Kwh as against 3.56 ml/Kwh of last year. The auxiliary consumption was 10.63% as against 9.93% of last year. The average gross calorific value of coal fired during the year was 3245 Kcal/Kg as against 3533 Kcal/kg of last year. The heat rate for the year 2010-11 was 2817 Kcal/kwh. The transit loss for the year 2010-11 was 0.5% as against 1.99% for last year.

Future Projects (13940 MW):

1. Uran Gas Based Combined Cycle Power Plant (CCPP) (1220 MW)- Block-I : 406 MW, Block-II: 814 MW: Tender for Lump sum turnkey contract for installation of 1220 MW advance class gas turbine based CCPP were invited on 28.01.2011. Tender sale was from 09.02.2011 to 24.02.2011. Bids received on 08.07.2011 and Cover-I opened on the same day. Letter of Award is expected by March 2014 followed by Block II (814 MW) by June 2014. Land, water and other statutory clearances are available. Typing up of gas for the project is in progress. GoM has accorded approval for implementation of 1220 MW Combined Cycle Power Project at Uran vide Government Resolution no. Project08/ Pra.kra.1246/ Urja-4 dated 02.03.2010.

2. Bhusawal TPS Unit 6 (1 x 660 MW):

Land for the project is acquired. Acquisition of land for railway siding is in progress. The order for main plant is envisaged by May 2012. To this extent, commissioning (COD) is expected by October 2016. Government of Maharashtra has approved the implementation of this project vide Government resolution no. Prakalpa-2010/ Pra. Kra. 3/Urja-4 dated 05.10.2010.

3. Nasik TPS Unit 6 (1 x 660 MW):

It is planned to install one coal based super critical unit of 660 MW capacity at Nasik TPS premises.

4. Paras Thermal Power Project Unit 5 (1 x 660 MW):

The said project is under planning stage.

5. Latur Coal Based Unit 1 and 2 (2 x 660 MW) or Gas based CCPP Block-I and II (2 x 750 MW):

MSPGCL has signed Memorandum of Understanding with M/s BHEL on 12.08.09 for formation of Joint Venture Company to set up 2 x 660 MW super critical Power Plant or 1500 MW gas based combined cycle power plant at Latur. The Joint Venture Agreement with M/s BHEL is signed on 11.11.2010. Certificate of incorporation of Latur Power Company ltd. is issued by Registrar of Companies, Mumbai under the Companies Act on 06.04.2011. Further activities for formation of JVC are in progress. The activities for land acquisition are in progress. Divisional Commissioner accorded approval for rates for land required to be acquired. Action for fuel linkage are in progress with MoC/ MoPNG. It is envisaged to place the LOA for Main Plant by April 2012. To this extent, the commissioning (COD) of the project is expected as under:

(i) Coal based: Unit 1 by April 2016 and Unit 2 by September 2016 or

(ii) Gas based: Block-I by April 2015 and Block-II by June 2015.

GoM, vide letter no. Prakalpa-0610/Pra.Kra.194/Urja-4 dated 25.10.2010 accorded in principal approval for setting up of 2 x 660 MW Coal based or 1500 MW Gas based Power Project at Latur or any suitable place in Maharashtra. After finalization of coal based or gas based project, Mahagenco will submit the proposal of this project to GoM for approval. The type and capacity of project will be decided by Latur Power Company.

6. Dhopave TPS Project Unit- 1 to 3 (3 x 660 MW):

Mahagenco has proposed to go in for installation of 3x660 MW units at Dhopawe by way of Joint Venture structuring. Land acquisition is in progress. Water: Total 80 MM3 water required for the project is available from Koyna tailrace. Fuel: Ramp-up quantity coal from Machakkata coal block shall be available for the project. The proposal for in-principal approval has been submitted to GoM vide letter dated 13.10.2010. It has been suggested by GoM to execute the above project through JV. A consultant has been appointed for assisting in selection of JV partner for the project. Preparation of DPR is in process.

7. Dondaicha TPS Unit- 1,2,3,4 and 5 (5 x 660 MW):

Land acquisition is in progress.

Water: WRD Department has accorded approval (in general) for reservation of 40 MM3 water from Nimna Tapi project on Tapi river for 2x660 MW (Stage-I). TIDC has informed that additional 45 MM3 of water for 3 x 660 MW (Stage-II) could be made available from Nimna Tapi project on Tapi river.

Fuel: Coal required for Unit 1and2 9Stage-I) will be made available from Chendipada Coal block, Orissa. The U.C.M. (Uttarpradesh-Chhatisghad- Maharashtra) Joint Venture company who have been allotted the coal block have appointed M.D.O. to develop the said mine. The coal for Unit 3,4 and 5 (Stage-II) is proposed to be made available from Machhakata coal block in Orissa. However, if Dhopawe 3x660 MW project is approved by GoM, the coal available from this coal block will be diverted to Dhopawe project and the coal required for Dondaicha Stage-II project will be made available from Mahanadi coal block in Orissa. In case of delay in availability of coal from Mahanadi coal block, coal will be made available from tapered linkage. MoEandF clearance: Meeting of MoEandF’s Expert Appraisal Committee on Thermal Power and Coal Mine Projects is hled on 05.04.2011 to finalize the TOR. Matter taken up with Government of Maharashtra for approval of the project. It has been suggested by GoM to execute the above project through JV. A consultant has been appointed for assisting in selection of JV partner for the project. Preparation of DPR is in process.

8. Coal based Thermal Power Project near Kanpa (Tal. Nagbhid, Dist. Chandrapur) (2x660 MW):

Mahagenco has proposed to go in for installation of 2x660 MW Units near Kanpa by way of Joint Venture structuring. The said project is under planning stage. Preliminary activities for land acquisition is in progress. Matter taken up with WRD for requirement 40 MM3 water for this project. For grant of long term coal linkages, follow up is going on with Ministry of Coal, CEA.

9. Coal based Thermal Power Project near Manora 9Tal. Tiroda, Dist. Gondia (2 x 660 MW):

The said project is under planning stage. Preliminary activities for land acquisition is in progress. WRD has informed its inability to meet the water requirement of 40 MM3 water for this project from proposed barrage on Wainganga river near Mendhri (Khairi). For grant of long term coal linkages, follow up is going on with Ministry of Coal/ CEA.

10. Coal based Thermal Power Project in Mendki (Tal. Brahmapuri, Dist. Chandrapur)

Mahagenco has proposed to go in for installation of 2x660 MW Units in Mendki by way of Joint Venture structuring. The said project is under planning stage. Preliminary activities for land acquisition is in progress. Matter taken up with WRD for the requirement of 40 MM3 water for this project. For grant of long term coal linkages, follow up is going on with Ministry of Coal/ CEA.

CONTINGENT LIABILITY:

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010
Claims against company not acknowledged as Debts	3377.035	3390.800
Disputed Duties / Tax	1226.788	280.714
Demands Bank Guarantee given by Company on behalf of JV (Mahaguj Collieries Limited)	138.975	138.975

FORM 8

Corporate identity number of the company	U40100MH2005SGC153648
Name of the company	MAHARASHTRA STATE POWER GENERATION COMPANY LIMITED
Address of the registered office or of the principal place of business in India of the company	Prakashgad, Plot No. G-9, Bandra (East), Mumbai-400051, Maharashtra, India
This form is for	Modification of charge
Type of charge	Immovable property Movable property (not being pledge)
Particular of charge holder	Rural Electrification Corporation Limited, Core 4 Scope Complex, 7 Lodi Road, New Delhi 110003, India Email: mlkumawat@recl.nic.in
Nature of instrument creating charge	Addendum to Indenture of Mortgage for term loan no 1 -2X500MW Chadrapur Expn project between MS Power Gen Co Limited and REC Ltd. dated 30.7.11 for increasing the amount of original Charge from Rs 16800 millions as per indenture of mortgage dt 28.1.09 to Rs 44000 millions and for creation of first charge on movable and immovable properties both present and future of borrower MS power Gen CO Ltd under scheme code no 2600002/C90002
Date of instrument Creating the charge	30.07.2011
Amount secured by the charge	Rs. 44000.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest The interest rate , applicable for the above loan would be generation catagory of schemes with options of reset every 3 years /10 years and further amendments issued from time to time by REC Ltd Terms of repayment The repayment will be for a period of 10 years from 6months of COD or from the date of first disbursement whichever is earlier Margin 20 % Extent and operation of the charge The charge will be first charge and extend to Rs 44000 millions and operate on existing immovable properties land and bldg situated at Chandrapur TPS expn project at Chandrapur in Maharashtra state admeasuring 105.55 hectares and first charge on all movable and immovable properties (both present and future) to be created out of project of mortgager in the terms of indenture of mortgage dated 28.1.2009 and Addendum to Mortgage 30.7.2011 and loan agreemt dated 26.8.08 and supplementary loan agmt18.10.10
Short particulars of the property charged (Including location of the property)	First charge on all existing immovable properties situated at chandrapur TPS expn project (2X500MW) situated at Chandrapur in Maharashtra stateadmeasuring 105.55 hectares and first charge on all movable and immovable properties (both present and future) to be created out of project of mortgager in the terms of indenture of mortgage dated 28.1.2009 and addendum to Mortgage deed 30.7.2011 and loan agreement dt 26.8.08and supplementary loan agreement dated 18.10.10
Particulars of the present modification	The original charge created for term loan of Rs 16800 millions is modified for securing additional term loan of Rs 27200 millions total amount aggregating Rs 44000 millions. The Charge is secured on all immovable and movable properties (both present and future) in favor of REC for Chandrapur (2X500MW ) TPS expansion project.

FIXED ASSETS:

• Land (Including development)
• Freehold
• Leasehold
• Building
• Factory Buildings
• Hydraulic Works
• Other Civil Works
• Railway Sidings
• Road and Others
• Plant, Machinery and Equipments
• Lines and Cable Networks
• Vehicles
• Furniture and Fixtures
• Other Equipments (Including Computers)

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.54.88
UK Pound	1	Rs.83.54
Euro	1	Rs.70.90

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	7
--CREDIT LINES	1~10	8
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		64

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.