MIRA INFORM REPORT

Report Date :

01.02.2013

IDENTIFICATION DETAILS

Name :	VOLTAMP TRANSFORMERS LIMITED (w.e.f. 22.02.2006)
Formerly Known As :	VOLTAMP TRANSFORMERS PRIVATE LIMITED
Registered Office :	Makarpura, Vadodara – 390 014, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	02.03.1967
Com. Reg. No.:	04-001437
Capital Investment / Paid-up Capital :	Rs. 101.171 millions
CIN No.: [Company Identification No.]	L31100GJ1967PLC001437
TAN No.: [Tax Deduction & Collection Account No.]	AHMV00819A BRDV01071A
PAN No.: [Permanent Account No.]	AAACV5048G
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Transformers.
No. of Employees :	1000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (69)

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 15800000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an old and well established company having fine track record. There appears slight dip in the profitability during 2012. However, financial position of the company appears to be sound. Trade relations are reported as trustworthy. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – 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	CARE
Rating	AA (Long term Bank facility)
Rating Explanation	High degree of safety and very low credit risk.
Date	19.03.2012

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.

INFORMATION DENIED BY

Name :	Mr. Bharat Bhai
Designation :	Finance Executive
Contact No.:	91-265-2642011
Date :	31.01.2013

LOCATIONS

Registered/ Head Office/ Factory 1 :	Makarpura, Vadodara – 390 014, Gujarat, India
Tel. No.:	91-265-2646775 / 2642011 / 2642012 / 3041403
Fax No.:	91-265-2646774 / 2648454
E-Mail :	voltamp@voltamptransformers.com vnm_act@voltamptransformers.com
Website :	http://voltamptransformers.com
Factory 2 :	Village Vadadla, Jarod-Samlaya Road, Tehsil Savli, District Vadodara-391520, Gujarat
Regional Offices :	Northern Region Located at · New Delhi · Chandigarh · Gaziabad Southern Region Located at · Chennai · Secunderabad · Bangalore · Coimbatore Western Region Located at 01, Ground Floor, Siddhachal Building, Nr. Cosmos Bank, Hanuman Road, Vile Parle (East), Mumbai – 400057, Maharashtra, India Tel. No. :91- 22-26135289 Fax. No.:91-22-2613 5296 · Pune · Ahemdabad · Thane · Nagpur

DIRECTORS

As on 31.03.2012

Name :	Mr. Lalitkumar H. Patel
Designation :	Chairman
Date of Birth/Age :	77 years
Qualification :	B.Sc. (Engg.), A.C.G.I. 1. Patson Transformers M.I.E.
Other Directorship :	Patson Transformers Private Limited Kunjal Investment Private Limited
Name :	Mr. Kunjal L. Patel
Designation :	Vice Chairman and Managing Director
Qualification :	B.E. (Electrical)
Experience :	16 Years
Name :	Mr. Kanubhai S. Patel
Designation :	Chief Executive Officer and Managing Director
Qualification :	B. Com., F.C.A., F.C.S.
Experience :	32 Years
Name :	Mr. Kewalkrishna G. Tuli
Designation :	Director
Date of Birth/Age :	75 years
Qualification :	B.E. civil
Other Directorship :	Paramount Limited
Name :	Mr. Vasantlal L. Patel
Designation :	Director
Name :	Mr. Jagannath S. Aiyar
Designation :	Director
Name :	Mr. Arvind N. Shelat
Designation :	Director
Name :	Mr. Vallabh N. Madhani
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Vallabh N. Madhani
Designation :	Company Secretary
Name :	Mr. Bharat Bhai
Designation :	Finance Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2012

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	907540	8.97
Bodies Corporate	3751540	37.08
Sub Total	4659080	46.05
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	4659080	46.05
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	264123	2.61
Financial Institutions / Banks	2785	0.03
Foreign Institutional Investors	3415991	33.76
Sub Total	3682899	36.40
(2) Non-Institutions
Bodies Corporate	632906	6.26
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	855028	8.45
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	228739	2.26
Any Others (Specify)	58468	0.58
Non Resident Indians	44271	0.44
Clearing Members	14197	0.14
Sub Total	1775141	17.55
Total Public shareholding (B)	5458040	53.95
Total (A)+(B)	10117120	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	10117120	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Transformers.

Products :

PRODUCT DESCRIPTION	ITEM CODE NO.
Transformer	8504

• Oil Filled Transformers
• Cast Resin (Dry Type) Transformers
• Unitised Sub-Station
• Induction Furnace Transformers
• Lighting Transformers

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Installed Capacity	Actual Production
Transformers	KVA	13000000	8973418
Transformers	No.	--	3055

GENERAL INFORMATION

No. of Employees :	1000 (Approximately)
Bankers :	ICICI Bank Limited, Land Mark Building, Race Course Circle, Vadodara – 390007, Gujarat, India Axis Bank Limited, Vardhaman Complex, Opposite GEB Office, Race Course Circle, Vadodara – 390007, Gujarat, India Bank of Baroda, Sayajigunj Branch, Vadodara – 390005, Gujarat, India

Banking Relations :	--
Auditors :
Name :	Chandulal M. Shah and Company Chartered Accountants
Address :	601, Samruddhi, Opposite Sakar III, Sattar Taluka Society, Ahmedabad – 380014, Gujarat, India
Associated Company :	Patson Transformers Private Limited Kunjal Investments Private Limited
Associated Firm :	The Banyan Club

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
12000000	Equity Shares	Rs.10/- each	Rs.120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10117120	Equity Shares	Rs.10/- each	Rs. 101.171 Millions

The Company is not a subsidiary of any other Company and it does not have any subsidiary. Shareholding details of the persons holding more than 5% shares are as under :

Names of person holding more than 5% shares	No. of Shares held
	31.03.2012
Kunjal Investments Private Limited	3751540
Nalanda India Fund Limited	1005340
Nalanda India Equity Fund Limited	647732
Royce Micro Cap Fund	524000
Citigroup Global Markets Mauritius Private Limited	--
Total	5928612

The Company has not issued any share by way of bonus or without payment being received in cash in pursuant to any contract during the period of last five years.

d. The Company has not bought back any share during the period of last five years.

e. The Company has only one class of equity share of Rs. 10 each. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		101.171	101.171	101.170
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3850.219	3635.041	3223.410
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3951.390	3736.212	3324.580
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		2.802	3.255	0.000
TOTAL		3954.192	3739.467	3324.580
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		540.676	558.465	437.382
Capital work-in-progress		7.993	8.430	35.322
INVESTMENT		1098.540	931.518	1059.536
DEFERRED TAX ASSETS		0.000	0.000	1.930
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1021.615	881.809	605.253
	Sundry Debtors	1739.889	1449.806	1304.306
	Cash & Bank Balances	48.162	355.215	410.727
	Other Current Assets	0.963	2.470	0.000
	Loans & Advances	66.995	78.678	112.552
Total Current Assets		2877.624	2767.978	2432.838
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	74.056	26.530	76.706
	Other Current Liabilities	282.346	286.472	314.829
	Provisions	214.239	213.922	250.893
Total Current Liabilities		570.641	526.924	642.428
Net Current Assets		2306.983	2241.054	1790.410
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3954.192	3739.467	3324.580

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	5698.052	5353.395	5419.704
		Other Income	154.545	183.082	230.926
		TOTAL (A)	5852.597	5536.477	5650.630
Less	EXPENSES
		Cost of materials consumed	4714.694	4176.018	4361.720
		Employee benefits expense	188.147	159.315
		Other Expenses	529.610	464.252
		Changes in inventories of finished goods, WIP and stock-in-trade	(151.631)	(112.014)
		TOTAL (B)	5280.820	4687.571	4361.720
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		571.777	848.906	1288.910
Less	FINANCIAL EXPENSES (D)		4.774	5.950	6.205
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		567.003	842.956	1282.705
Less/ Add	DEPRECIATION/ AMORTISATION (F)		82.694	74.962	59.705
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		484.309	767.994	1223.000
Less	TAX (H)		151.547	250.185	397.690
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		332.762	517.809	825.310
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		134.650	123.019	145.177
Less	APPROPRIATIONS
		Proposed Dividend	117.584	91.054	126.464
		Corporate Dividend Tax		15.124	21.004
		Transfer to General Reserve	250.000	400.000	700.000
	BALANCE CARRIED TO THE B/S		99.828	134.650	123.019
	EARNINGS IN FOREIGN CURRENCY
		Export of goods calculated on FOB value	4.324	3.486	1.192
	TOTAL EARNINGS		4.324	3.486	1.192
	IMPORTS
		Raw Materials	NA	77.984	62.500
		Capital Goods	NA	51.324	2.066
	TOTAL IMPORTS		NA	129.308	64.566
	Earnings / (Loss) Per Share (Rs.)		32.89	51.18	81.58

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012
Type	1^st Quarter	2^nd Quarter
Total Expenditure	996.000	1108.000
PBIDT (Excl OI)	957.000	1057.600
Other Income	39.100	50.400
Operating Profit	58.600	36.400
Interest	97.700	86.800
Exceptional Items	01.500	01.000
PBDT	0.000	0.000
Depreciation	96.200	85.800
Profit Before Tax	18.400	18.900
Tax	77.800	66.900
Provisions and contingencies	20.700	18.500
Profit After Tax	0.000	0.000
Extraordinary Items	57.1 00	48.400
Prior Period Expenses	0.00	0.000
Other Adjustments	0.00	0.000
Net Profit	0.00	0.000
	57.100	48.400

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	5.69	9.35	14.61
Net Profit Margin (PBT/Sales)	(%)	8.50	14.35	22.57
Return on Total Assets (PBT/Total Assets}	(%)	14.17	23.09	42.61
Return on Investment (ROI) (PBT/Networth)		0.12	0.21	0.37
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		5.04	5.25	3.79

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	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	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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

PERFORMANCE REVIEW:

In the competitive market, the Company was able to achieve Sales and Other Income, in monetary terms for the year to Rs. 5850.000 millions as compared to Rs. 5540.000 millions in the previous year. The sales in terms of volume remained almost same and stood at 8991 MVA as compared to 8973 MVA in the previous year. However, the Profit Before Tax (PBT) was reduced to Rs. 480.000 millions as compared to Rs. 770.000 millions in the previous year and Profit After Tax (PAT) reduced to Rs. 330.000 millions as compared to Rs. 520.000 millions in the previous year. The profitability of the Company was adversely affected largely, due to intense price war amongst manufacturers in view of over capacity in the Industry and also on account of sharp increase in raw material prices on fixed price contracts. The Rupee depreciation against US Dollar has also adversely impacted further during the financial year. However, compared to its peers in industry, profitability of the Company is relatively better though it is on lower side compared to previous year.

The current year has begun with lower order backlog of Rs. 2950.000 millions (4736 MVA). The enquiry level has been improved but decision making is very very slow and all the orders are booked on very very low margin, with attendant risk of uncertainty during its execution, in view of intense competition in market. Again, the Company is continuing to be very selective in taking orders as still the price realization remains very low. The present challenge is managing orders within the budgeted costs and high volatility in the prices of major raw materials. Credit period extended to customers not getting honoured results into high level of receivables with resultant strain on cash flow. Barring unforeseen circumstances, the Company expects to increase its volume of business in the current year. For detailed analysis of the performance, please refer to the management’s discussion and analysis section of the annual report.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY OVERVIEW:

The overall transformer industry in India is a matured one with domestic as well as export markets, as power sector development is key to the economic development. Demand generated from capacity additions, which is expected to be 76,000 MW during 12th five year plan; and replacement of demand, will increase demand further. Thrust and policy of Government of India to electrify all villages by 2020 and programmes like the RGGVY will provide opportunities and growth in the transformer industry. However, looking to current recession in the global market, cut throat competition, escalation in prices of raw materials, credit squeeze, delayed financial closure, delay in implementation of plans by government and environment concerns, they believe that there will be pressure on the margins in the short-run.

OUTLOOK FOR THE COMPANY:

With upcoming projects and added efforts being put in for power generation, transmission & distribution, the long term prospects are bright. However, due to sizable unutilized capacity in the transformer industry, prices are under pressure which leads to immense competition amongst the industry players. Increasing competition, delay in government projects, high volatility in the prices of major raw materials like copper, electrical steel sheets, transformer oil, steel and related components will continue to impact realizations, both at gross and net level, and hence hindering the proper growth of the industry in the near future.

The practice of many MNCs operating in project business and sourcing transformers from outside vendors is still on chase, as most of them are going ahead with plan to have captive units to manufacture transformers, which will adversely impact business volume from those MNCs in the long term. The rupee depreciation against US Dollar may also adversely impact further during the financial year. Despite the above, as on date, orders available for execution in the current year amount to Rs. 4110.000 millions, totaling 7075 MVA, providing revenue visibility for approx. 7-8 months.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH SEPTEMBER, 2012

(Rs. In millions)

PART I
Sr. No.	Particulars	Quarter Ended On 30.09.2012	Quarter Ended On 30.06.2012	Six Months Ended On 30.09.2012
		Unaudited	Unaudited	Unaudited
1	INCOME
	Gross Sales / Income from operations	1222.679	1091.228	2313.907
	Less: Excise Duty	114.718	95.211	209.929
	Net Sales / Income from operations	1107.961	996.017	2103.978
2	EXPENDITURE
	a) (Increase) / Decrease in stock	42.147	(273.458)	(231.311)
	b) Consumption of raw materials	867.686	1043.864	1911.550
	c) Employee cost	47.575	47.829	95.404
	d) Depreciation	18.891	18.375	37.266
	e) Other expenditure	100.174	138.719	238.893
	f) Total	1076.473	975.329	2051.802
3	Profit from operations before other income and interest(1-2)	31.488	20.688	52.176
4	Other Income	36.429	58.636	95.065
5	Profit before interest (3+4)	67.917	79.324	147.241
6	Interest & Bank Charges	1.032	1.509	2.541
7	Profit from ordinary activities before tax (5-6)	66.885	77.815	144.700
8	Tax expenses	18.449	20.705	39.154
9	Net profit for the period (7-8)	48.436	57.110	105.546
10	Paid up equity capital (face value of Rs. 10/- each)	101.171	101.171	101.171
11	Reserve excluding revaluation reserves		—	—
12	Basic and diluted EPS for the period, for the year to date and for the previous year (not annualized)	4.79	5.64	10.43
PART II
A	PARTICULARS OF SHAREHOLDING
13	Public Shareholding
	- Number of shares	5458040	5458040	5458040
	- Percentage of shareholding	53.95	53.95	53.95
14	Promoter and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	Nil	Nil	Nil
	- Percentage of Share (as a % of the total	Nil	Nil	Nil
	Shareholding of promoters and promoter group)
	- Percentage of Share (as a % of the total share	Nil	Nil	Nil
	capital of the company)
	b) Non-encumbered
	- Number of shares	4659080	4659080	4659080
	- Percentage of shares (as a % of the total	100.00	100.00	100.00
	Shareholding of promoters and promoter group)
	- Percentage of Shares (as a % of the total share	46.05	46.05	46.05
	capital of the company)

		Quarter ended 30.09.2012
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	Nil
	Received during the quarter	Nil
	Disposed of during the quarter	Nil
	Remaining unresolved at the end of the quarter	Nil

NOTE:

1) The above results, for the quarter ended 30th September, 2012 have been reviewed by the Audi Committee and approved by Board of Directors at their meetings held on 5th November, 2012.

2) The Statutory Auditors of Company have carried out limited review of the above results.

3) The activities of the Company relate to only one segment i.e. Electrical Transformers.

STATEMENT OF ASSETS AND LIABILITIES

(Rs. In millions)

	Particulars	AS AT 30.09.2012 (Unaudited)
A	EQUITY AND LIABILITIES
1	Shareholders' Funds:
	(a) Capital	101.171
	(b) Reserves and Surplus	3955.765
	Sub-Total Shareholders' Funds	4056.936
2	Non Current Liabilities
	(a) Deferred Tax Liabilities	0.457
	(b) Other Long-Term Liabilities
	(c) Long-Term Provisions	45.853
	Sub-Total Non Current Liabilities	46.310
3	Current Liabilities
	(a) Trade Payables	120.513
	(b) Other Current Liabilities	394.347
	(c) Short-Term Provisions	16.935
	Sub-Total Current Liabilities	531.795
	TOTAL - EQUITY AND LIABILITIES	4635.041
B	ASSETS
1	Non-Current Assets
	(a) Fixed Assets	529.663
	(b) Non-current investments	1014.315
	(c) Long-term loans and advances	14.901
	(d) Other non-current assets
	Sub-total - Non-current assets	1558.879
2	Current Assets
	(a) Current investments	444.450
	(b) Inventories	1244.213
	(c) Trade receivables	1277.632
	(d) Cash and cash equivalents	22.682
	(e) Short-term loans and advances	87.185
	(f) Other current assets
	Sub-total - Current assets	3076.162
	TOTAL - ASSETS	4635.041

CONTINGENT LIABILITIES (to the extent not provided for):

(Rs. in millions)

PARTICULARS	31.03.2012
Claims against the company not acknowledged as debt	2.729

FIXED ASSETS

Tangible Assets

• Land
• Buildings
• Plant and equipment
• Furniture and fixtures
• Vehicles
• Office equipment
• Computers

Intangible Assets

• Computer software
• Technical know how

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 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.53.29
UK Pound	1	Rs.84.22
Euro	1	Rs.72.23

INFORMATION DETAILS

Information Gathered by :	JML
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		69

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.