MIRA INFORM REPORT

Report Date :

23.02.2013

IDENTIFICATION DETAILS

Name :	LM WIND POWER BLADES (INDIA) PRIVATE LIMITED (w.e.f.12.05.2010)
Formerly Known As :	LM GLASFIBER (INDIA) PRIVATE LIMITED (w.e.f.19.12.2002) LM GLASFIBER (INDIA) LIMITED
Registered Office :	Plot No.85, Kiadb Industrial Area, Dabaspet, Nelamangala Taluka, Bangalore-562111, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	21.05.1993
Com. Reg. No.:	08-026157
Capital Investment / Paid-up Capital :	Rs.126.000 Millions
CIN No.: [Company Identification No.]	U31101KA1993PTC026157
TAN No.: [Tax Deduction & Collection Account No.]	BLRL00288B
PAN No.: [Permanent Account No.]	AAACL3093R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Selling of Rotor Blades for Wind Turbine Generators.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 5100000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a subsidiary of LM Power A/S, Denmark. Subject is a well established company having a satisfactory track record. Financially Company has performed well during the current year. Liquidity position of the company appears to be good. The subject gets good support from its holding companies. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered 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	ICRA
Rating	Short term Rating A2
Rating Explanation	Having strong degree of safety regarding timely payment of financial obligation it carry low credit risk.
Date	November, 2012

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

LOCATIONS

Registered Office/ Fcatory :	Plot No.85, Kiadb Industrial Area, Dabaspet, Nelamangala Taluka, Bangalore-562111, Karnataka, India
Tel. No.:	91-80-27735362/ 27735361/ 67764800
Fax No.:	Not Available
E-Mail :	mas@imwindpower.com dpp@lmglasfiber.com val@lmglasfiber.com

DIRECTORS

(AS ON 21.09.2012)

Name :	Mr. Neeraj Bisaria
Designation :	Director
Address :	A-304, Samvridhi Gardenia, Sahakara Nagar, Bangalore-560092, Karnataka, India
Date of Birth/Age :	01.07.1971
Date of Appointment :	12.11.2009
DIN No.:	02833292
PAN No.:	ABKPB3561A
Name :	Mr. Vishal Almal
Designation :	Director
Address :	Flat No. B-306, Temple Tree Apartment, 29/1, Kanakapua Road, Bangalore-560078, Karnataka, India
Date of Birth/Age :	16.07.1974
Date of Appointment :	12.11.2009
DIN No.:	02834959
Pan No.:	ADBPA2811P

KEY EXECUTIVES

Name :	Mr. Vishal Almal
Designation :	Secretary
Address :	Flat No. B-306, Temple Tree Apartment, 29/1, Kanakapua Road, Bangalore-560078, Karnataka, India
Date of Birth/Age :	16.07.1974
Date of Appointment :	20.04.2009
Pan No.:	ADBPA2811P

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 21.09.2012)

Names of Shareholders	No. of Shares
LM Wind Power A/s, Denmark	12599990
LM Wind Power Blades (ND) Inc, USA	5
LM Wind Power Blades (Ponferrada), S.A., Spain	3
LM Glasfiber (Holland) B.V., Netherlands	2
Total	12600000

(AS ON 30.09.2012)

Equity Shares Break – up

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Selling of Rotor Blades for Wind Turbine Generators.

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	Not Available
Facilities :	--

Banking Relations :	--
Auditors :
Name :	Price Waterhouse and Company Chartered Accountant
Address :	5^th Floor, Tower D, The Millenia, 1 and 2, Murphy Road, Ulsoor, Bangalore-560008, Karnataka, India
PAN No.:	AADFP9359C
Holding Company :	· LM Wind Power A/s, Denmark (LMD)
Ultimate Holding Company :	· LM Wind Power Holding A/s, Demark
Fellows Subsidiaries :	· LM Wind Power Espanola, S.A. (LMSA), Spain · LM Wind Power (Tianjin) Company Limited, China (LMT), China · LM Wind Power Deutschland GmbH (LMGH), Germany · LM Wind Power (ND), Inc, United State · LM Wind Power Poland Sp. z.o.o (LMPSp), Poland · LM Wind Power (Services) B.V., Netherland · LM Wind Power Canada Inc., Canada · LM Wind Power Bl. (Little Rock), United States · LM Winf Power R and D (Indi) Private Limited · LM Wind Power (GF), Inc., United State · LM Wind Power Group Holding A/S (LMGHAS), Denmark · LM Wind Power Technologies (India) Private Limited, India · LM Wind Power Espanoal S.A. (LMSA), Spain

CAPITAL STRUCTURE

(AS ON 21.09.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
12600000	Equity Shares	Rs.10/- each	Rs.126.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12600000	Equity Shares	Rs.10/- each	Rs.126.000 Millions

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		126.000	126.000	126.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1145.233	623.488	694.361
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1271.233	749.488	820.361
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		418.525	85.065	0.000
TOTAL BORROWING		418.525	85.065	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1689.758	834.553	820.361
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2006.907	1220.965	1235.999
Capital work-in-progress		45.172	3.052	8.182
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		332.699	574.332	417.526
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	764.632	640.684	548.043
	Sundry Debtors	359.592	358.549	614.318
	Cash & Bank Balances	686.053	748.368	407.873
	Other Current Assets	1.639	1.506	10.177
	Loans & Advances	411.689	192.669	85.381
Total Current Assets		2223.605	1941.776	1665.792
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	1615.798	1165.149	1386.178
	Other Current Liabilities	944.400	633.208	267.516
	Provisions	358.427	1107.215	853.444
Total Current Liabilities		2918.625	2905.572	2507.138
Net Current Assets		(695.020)	(963.796)	(841.346)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1689.758	834.553	820.361

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income			2623.000
		Other Income			181.600
		TOTAL	4867.841	3649.625	2804.600
Less	EXPENSES
		Cost of Materials			1429.800
		Operating Expenses			1005.000
		TOTAL	4098.463	3719.069	2434.800
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		(Including Financial Expenses and Depreciation)	(Including Financial Expenses and Depreciation)	369.800
Less	FINANCIAL EXPENSES				4.900
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION				364.900
Less/ Add	DEPRECIATION/ AMORTISATION				391.400
Less/ Add	PRIOR PERIOD AND EXTRAORDINARY ITEMS				176.000
	PROFIT BEFORE TAX		769.378	(69.444)	149.500
Less	TAX		247.632	1.398	77.900
	PROFIT AFTER TAX		521.746	(70.842)	71.600
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	6.353	842.346
	TOTAL EARNINGS		NA	6.353	842.346
	IMPORTS
		Raw Materials	NA	NA	911.620
		Stores & Spares	NA	NA	61.258
		Capital Goods	NA	NA	140.850
	TOTAL IMPORTS		NA	NA	1113.728
	Earnings Per Share (Rs.)		41.41	(5.63)	5.68

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	10.72	(1.94)	2.55
Net Profit Margin (PBT/Sales)	(%)	NA	NA	5.70
Return on Total Assets (PBT/Total Assets}	(%)	18.19	(2.20)	5.15
Return on Investment (ROI) (PBT/Networth)		0.61	(0.09)	0.18
Debt Equity Ratio (Total Debt/Networth)		0.33	0.11	0.00
Current Ratio (Current Asset/Current Liability)		0.76	0.67	0.66

LOCAL AGENCY FURTHER INFORMATION

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

UNSECURED LOANS

Particulars	31.03.2012	31.03.2011
	(Rs. In Millions)
Term Loans from Others	418.525	85.065
Total	418.525	85.065

NOTE:

Registered office has been shifted from 61 and 62, Kasaba Industrial Area, Hosakote Area, Bangalore, Karnataka, India to the present address w.e.f.01.04.2009.

BUSINESS OPERATIONS OVERVIEW AND OUTLOOK:

The company has achieved a sales turnover of Rs.4678.855 Millions compared to Rs.3532.919 Millions in the previous year for 12 months ended 31^st March 2011. The company earned a profit before tax of Rs.769.378 Millions compared to loss of Rs.69.444 Millions in the previous period. The Wind Energy market in India is poised for significant growth in the coming years and the Company has geared up to meet the market Challenges.

The wind industry in India is expected to grow at fast pace due to growing demand for energy and dwindling reserves of fossil fuel. The investments in wind turbine installations in India continue to be driven by tax incentives. This scenario is changing with professional investments by potential developers to bridge the gap in the growing demand for energy with clean and renewable energy sources such as wind and solar power. The company has geared up to meet this challenge with the stabilisation of its state of the art plant at Dabaspet capable of for producing blades of > 40 meters in length.

FIXED ASSETS

· Freehold Land

· Leasehold Land

· Building

· Plant and Machinery

· Data Processing Equipments

· Furniture and Fixtures

· Motor Vehicles

NEWS:

WIND ENERGY GEAR MAKERS POWER UP INDIA PLANS

Chennai, April 7:  

With the epicentre of the wind energy industry, in the words of Mr. Tulsi Tanti, Chairman and Managing Director, Suzlon Energy Limited, moving towards the Asia-Pacific and India and China offering the biggest opportunities for growth, turbine manufacturers are charting out expansion plans for India.

A cross-section of turbine manufacturers at Wind Power India 2011, a three-day event on the industry that began here today, outlined plans to either set up new facilities or bring in wind turbines of larger capacity, to tap the growing market. The turbines will be suited to low wind sites in the country.

The industry estimates that the capacity addition from wind would be 5,000 MW a year in the next few years. In 2010-11, a little over 2,300 MW of wind energy capacity came up, an all-time high for the country.

Siemens, the German engineering company, plans to set up a plant near Vadodara in Gujarat to manufacture wind turbines. The plant is expected to start producing by 2013 and it will make 2.3 MW turbines, according to Mr. Bernhard Telgman, CEO – APAC, Siemens. “We will launch a product that fits the market - a low to medium wind speed machine,” he said.

At the event, Suzlon launched a new platform of wind turbines of 2.1 MW capacity with rotor diameter of 95 m and 97 m meant to tap moderate to low wind speeds. The turbines will have towers that are 90 m and 100 m high and will have a larger swept area, enabling greater energy capture, according to Mr. Tanti.

Kenersys, a Kalyani group company, which recently inaugurated its wind turbine assembly plant in Baramati, Maharashtra, hopes to sell 150 MW of turbines in 2011. The company sells turbines of 2 MW capacity and will offer 2.5-MW turbines next year. The company has MoUs for 1,000 MW to be installed in the next three years, according to Mr Paulo Fernando Soares, CEO, Kenersys Group, which has a plant in Germany. The company hopes to start selling turbines in the US and Brazil, and, depending on the volume of business, will decide on setting up an assembly plant in these two countries.

Gamesa Wind Turbines Private Limited the Indian subsidiary of Gamesa of Spain, has announced plans to set up facilities to make towers, nacelles and blades. It has an assembling unit near Chennai where it makes 850 kW turbines. The company plans to launch 2 MW turbines later this year.

LM Wind Power, a leading global manufacturer of blades for wind turbines, plans to expand its facility near Bangalore. The Indian unit - LM Wind Power Blades (India) Private Limited - now has a capacity to make blades for 750 MW and plans to increase capacity by 500 MW at the Dabaspet plant. It also plans to set up a unit with a capacity of 600-700 MW in either Gujarat or Rajasthan, according to Mr. Ian Telford, Vice-President, Sales and Marketing, LM Wind Power.

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.54.43
UK Pound	1	Rs.83.20
Euro	1	Rs.71.91

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		50

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.