MIRA INFORM REPORT

Report Date :

06.07.2013

IDENTIFICATION DETAILS

Name :	TITAN ENERGY SYSTEMS LIMITED
Registered Office :	16, Aruna Enclave, Tirumalghery, Secunderabad – 500 015, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	13.01.1995
Com. Reg. No.:	01-19206
Capital Investment / Paid-up Capital :	Rs. 105.239 Millions
CIN No.: [Company Identification No.]	U31200AP1995PLC019206
TAN No.: [Tax Deduction & Collection Account No.]	HYDT00913D
PAN No.: [Permanent Account No.]	AAACT8885B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Titan Solar Photovoltaic Modules and Pannels.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 560000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Sales turnover has seen a step decrease during 2012. The company is incurring losses for past some years due to which the position of reserves is heavily deteriorating. Ratings also take into consideration the delays in servicing the debt payment and restructuring of bank limits. However, trade relations are fair. Business is active. Payments terms are slow. In view of experienced directors, the company can be considered for business dealings with great caution.

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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating : D
Rating Explanation	Default or expected to be in default.
Date	27.06.2013

Rating Agency Name	CRISIL
Rating	Short term rating : D
Rating Explanation	Default or expected to be in default on maturity.
Date	27.06.2013

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 :	16, Aruna Enclave, Tirumalghery, Secunderabad – 500 015, Andhra Pradesh, India
Tel. No.:	91-40-27791085 / 0751/ 27795629 / 64630900 / 64630901
Fax No.:	91-40-27795629
E-Mail :	Kaliprasad.v@titan-energy.com titan@titansolar.com sankar@hd1.vsnl.net.in finance@titansolar.com info@titan-energy.com sankar@titansolar.com marketing@titan-energy.com
Website :	http://www.titansolar.com http://www.titan-energy.com
Location :	Owned
Branch/ Factory :	P. O. Box No. 6, Ravalkole Village, Medchal – 501 401, Andhra Pradesh, India
Area :	30000 sq. ft. in 6 acres of land
Overseas Office :	Europe Gellertstrasse 30, Basel - 4052, Switzerland
Tel. No.:	41-6150-00529
E-Mail :	info.eu@titan-energy.com

DIRECTORS

As on : 31.12.2012

Name :

Mr. Chodagam Santhi Yogananda Sankar Rao

Designation :

Managing Director

Address :

Plot No. 16, Aruna Enclave, Trimulgherry, Secunderabad – 500 015, Andhra Pradesh, India

Date of Birth/Age :

29.12.1948

Qualification :

B.E., Graduate

Date of Appointment :

01.10.2006

DIN No.:

00408828

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U31300AP1991PLC012185	TITAN CONSULTANTS AND SERVICES LIMITED	Director	08-01-91	08-01-91	-	Active	NO
2	U31909AP1991PTC012962	TITAN TECHNOCRACTS PRIVATE LIMITED	Director	18-07-91	18-07-91	27-12-12	Active	NO
3	U31200AP1995PLC019206	TITAN ENERGY SYSTEMS LIMITED	Managing director	01-10-06	02-02-95	-	Active	NO
4	U74900AP2009PTC062628	BELECTRIC SOLAR INDIA PRIVATE LIMITED	Director	28-01-09	28-01-09	-	Active	NO
5	U24100AP2012PTC080537	KUBIS BIOSCIENCES PRIVATE LIMITED	Director	26-04-12	26-04-12	-	Active	NO

Name :

Mr. Chodagam Ravi Kiran

Designation :

Director

Address :

APT 3, 29 Scofieldave, Stamford, 069061700, United States of America

Date of Birth/Age :

10.01.1974

Date of Appointment :

23.05.2002

DIN No.:

02539555

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U31300AP1991PLC012185	TITAN CONSULTANTS AND SERVICES LIMITED	Director	01-08-91	01-08-91	-	Active	NO
2	U31200AP1995PLC019206	TITAN ENERGY SYSTEMS LIMITED	Director	23-05-02	23-05-02	-	Active	NO
3	U15400AP2012PTC080502	SVNS FOODS PRIVATE LIMITED	Director	24-04-12	24-04-12	-	Active	NO

Name :

Mr. Chodagam Sasidhar

Designation :

Director

Address :

APT 3, 29 Scofieldave, Stamford, 069061700, United States of America

Date of Birth/Age :

03.11.1975

Qualification :

01.02.2005

Experience :

02671282

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U31200AP1995PLC019206	TITAN ENERGY SYSTEMS LIMITED	Director	01-02-05	01-02-05	-	Active	NO
2	U24100AP2012PTC080537	KUBIS BIOSCIENCES PRIVATE LIMITED	Director	26-04-12	26-04-12	-	Active	NO

Name :

Mr. Venkataraman Subramanian

Designation :

Director

Address :

M-104, Ground Floor, Greater Kailash Part II, New Delhi – 110 048, India

Date of Birth/Age :

17.06.1948

Qualification :

09.10.2010

Experience :

00357727

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U40108DL1987GOI027265	INDIAN RENEWABLE ENERGY DEVELOPMENT AGENCY LIMITED	Director	01-02-06	01-02-06	26-06-07	Active	NO
2	L15543HP1991PLC019065	MOUNT EVEREST MINERAL WATER LIMITED	Director	31-07-09	30-09-08	-	Active	NO
3	U40106DL2008PLC181648	PTC ENERGY LIMITED	Director	25-09-09	10-12-08	-	Active	NO
4	U74120HR2008PTC037774	WINDFORCE MANAGEMENT SERVICES PRIVATE LIMITED	Director	23-12-08	23-12-08	-	Active	NO
5	U64202DL2003PTC122745	ACIRA SOLAR PRIVATE LIMITED	Director	30-12-08	30-12-08	31-01-12	Active	NO
6	L35999TN1962PLC004792	SUNDARAM -CLAYTON LIMITED	Director	29-09-09	15-07-09	-	Active	NO
7	U40101TN2005PTC058237	AURO MIRA ENERGY COMPANY PRIVATE LIMITED	Director	27-08-09	27-08-09	08-04-11	Active	NO
8	U40109TN2008PLC069101	TVS ENERGY LIMITED	Director	30-07-10	15-12-09	-	Active	NO
9	U40108AP2009PTC065903	GREENPRO INDUSTRIES PRIVATE LIMITED	Director	30-01-10	30-01-10	31-01-12	Active	NO
10	U74140WB2010PTC141636	GRAVITATIONAL NETWORK ADVISORS PRIVATE LIMITED	Director	10-03-10	10-03-10	-	Active	NO
11	U31200AP1995PLC019206	TITAN ENERGY SYSTEMS LIMITED	Director	09-10-10	09-10-10	-	Active	NO
12	U40109AP2009PTC064018	LANCO SOLAR ENERGY PRIVATE LIMITED	Director	30-09-11	22-01-11	-	Active	NO
13	L40101DL1969GOI005095	RURAL ELECTRIFICATION CORPORATION LIMITED	Director	10-06-11	10-06-11	-	Active	NO
14	U40108DL2004PTC130847	ENFRAGY SOLUTIONS INDIA PRIVATE LIMITED	Director	04-04-12	04-04-12	-	Active	NO

Name :

Ms. Poonam Garg

Designation :

Nominee Director

Address :

A- 802, The New Cosmopolitian Apartment, Plot No. 33, Sector 10, Dwarka, New Delhi – 110075, India

Date of Birth/Age :

01.02.1968

Date of Appointment :

19.10.2010

DIN No.:

00049894

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L74899HR1991PLC032873	NARAINGARH SUGAR MILLS LIMITED	Director	14-11-06	14-11-06	23-04-07	Active	NO
2	U85110AS1985PLC002447	G N R C LIMITED	Nominee director	14-11-06	14-11-06	22-12-08	Active	NO
3	U74999DL2000PLC106206	SATYAM CINEPLEXES LIMITED	Nominee director	01-06-12	05-02-09	-	Active	NO
4	U29130TN1959PLC003951	GUINDY MACHINE TOOLS LIMITED	Nominee director	28-08-09	28-08-09	27-04-10	Active	NO
5	U31902GJ2009PLC056235	DE CORE NANOSEMICONDUCTORS LIMITED.	Nominee director	30-03-10	30-03-10	-	Active	NO
6	U31200AP1995PLC019206	TITAN ENERGY SYSTEMS LIMITED	Nominee director	19-10-10	19-10-10	-	Active	NO
7	U31506UP2001PLC043372	DE CORE SCIENCE AND TECHNOLOGIES LIMITED	Nominee director	30-09-11	24-03-11	-	Active	NO
8	U36104CT1988PLC004711	MINWOOL ROCK FIBERS LIMITED.	Nominee director	23-07-11	23-07-11	-	Active	NO
9	U28910PB1990PTC010265	AMBER ENTERPRISES INDIA PRIVATE LIMITED	Nominee director	30-09-11	10-09-11	-	Active	NO
10	U51109AP2002PTC039141	AMRIT JAL VENTURES Private Limited	Nominee director	13-12-11	13-12-11	-	Active	NO
11	L29120MP1995PLC009327	SHAKTI PUMPS (INDIA) LIMITED	Nominee director	28-09-12	18-01-12	-	Active	NO
12	U24100MH1993PLC071376	SHREE PUSHKAR CHEMICALS AND FERTILISERS LIMITED	Nominee director	26-03-13	26-03-13	-	Active	NO

Name :

Mr. Erramilli Venkata Rama Sastry

Designation :

Director

Address :

2-2-38B/4, FT – 401, C-57, DD Colony, Bagh Amberpet, Hyderabad – 500007, Andhra Pradesh, India

Date of Birth/Age :

24.05.1945

Date of Appointment :

31.12.2012

DIN No.:

03062465

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74140AP1990PTC011583	ZENITH ENERGY SERVICES PRIVATE LIMITED	Director	25-09-10	29-03-10	-	Active	NO
2	U31200AP1995PLC019206	TITAN ENERGY SYSTEMS LIMITED	Director	31-12-12	10-12-11	-	Active	NO

Name :

Mr. Sachin Sharma

Designation :

Director

Address :

D. No 11-1-660, Apartment No. 406, Ashok Chandra Enclave, Red Hills, AC Guards Lakdikapool, Hyderabad – 500016, Andhra Pradesh, India

Date of Birth/Age :

10.08.1947

Date of Appointment :

20.09.2012

DIN No.:

05281526

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U40300AP2006PLC050927	ARANI POWER SYSTEMS LIMITED	Nominee director	03-05-12	03-05-12	30-03-13	Active	NO
2	U74899DL1994PTC060453	CENTURY METAL RECYCLING PRIVATE LIMITED.	Nominee director	27-08-12	18-05-12	14-05-13	Active	NO
3	U01409KA2004PTC033933	MSR HOTEL (BANGALORE) PRIVATE LIMITED	Nominee director	30-06-12	30-06-12	-	Active	NO
4	U31200AP1995PLC019206	TITAN ENERGY SYSTEMS LIMITED	Nominee director	20-09-12	20-09-12	-	Active	NO
5	U24100MH1993PLC071376	SHREE PUSHKAR CHEMICALS AND FERTILISERS LIMITED	Nominee director	12-10-12	12-10-12	26-03-13	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 31.12.2012

Names of Shareholders	No. of Shares
C. S. Y. S. Rao	3610976
Chodagam Sasidhar	1961287
Chodagam Aruna	1504574
Chodagam Ravi Kiran	980644
Titan Consultants and Services Limited, India	100
Titan Technocrats Private Limited, India	100
BLITZ Storm GMBH	800934
IFCI	1665296
Total	10523911

As on 27.03.2012

Name of Allotee	No. of Shares
Green India Venture Fund	493421
Total	493421

Equity Share Break up (Percentage of Total Equity)

As on : 31.12.2012

Category	Percentage
Public financial companies	15.82
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	7.61
Directors or relatives of Directors	76.57
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Titan Solar Photovoltaic Modules and Pannels.

Products :

Product Description	Item Code
Solar Photovoltaic Modules	8541.40

PRODUCTION STATUS 31.03.2010

Particulars	Installed Capacity	Actual Production
Modules	96 MW	11.06 MWp

GENERAL INFORMATION

No. of Employees :

Bankers :

· Union Bank of India, Somaji Guda Branch, 6-3-347/9/4, Dwarkapuri Colony, Hyderabad – 500082, Andhra Pradesh, India

· State Bank of India, Industrial Finance Branch, 1^st Floor, Navabharat Chambers, Raj Bhavan Road, Hyderabad-500082, Andhra Pradesh, India

· Barclays Bank Plc, 601/603, Ceejay House, Shivsagar Estate, Dr. Annie Besant Road, Worli, Mumbai – 400 018, Maharashtra, India

Facilities :

(Rs in Millions)

SECURED LOANS	31.03.2012	31.03.2011
Long term Borrowings :
Term loan from Bank	299.000	85.000
Short term Borrowings :
Rupee term loan from Bank	58.537	56.698
Loans repayable on demand	262.510	526.145
Total	620.047	667.843

Auditors :
Name :	PRV Associates Chartered Accountants
Address :	3-6-203, Ground Floor, Himayath Nagar, Hyderabad – 500 029, Andhra Pradesh, India
Tel. No.:	91-40-23227651/ 23227114
Fax No.:	91-40-23223289
PAN No.:	AACFP6810F
Other Related Party :	IFCI Venture Capital Funds Limited, India CIN : U65993DL1988PLC030284
Related Companies :	· Titan Consultants and Services Limited · Titan Technocrats Private Limited

CAPITAL STRUCTURE

As on : 31.12.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10550000	Equity Shares	Rs.10/- each	Rs. 105.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10523911	Equity Shares	Rs.10/- each	Rs. 105.239 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	105.239	100.305
(b) Reserves & Surplus	36.095	350.677
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	141.334	450.982
(3) Non-Current Liabilities
(a) long-term borrowings	299.000	85.000
(b) Deferred tax liabilities (Net)	6.608	4.207
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	14.106	13.690
Total Non-current Liabilities (3)	319.714	102.897
(4) Current Liabilities
(a) Short term borrowings	321.047	582.843
(b) Trade payables	161.938	64.801
(c) Other current liabilities	193.456	157.306
(d) Short-term provisions	0.000	0.000
Total Current Liabilities (4)	676.441	804.950
TOTAL	1137.489	1358.829
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	335.649	137.866
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	206.257
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	335.649	344.123
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	459.898	603.013
(c) Trade receivables	257.092	302.658
(d) Cash and cash equivalents	23.050	40.535
(e) Short-term loans and advances	61.800	63.812
(f) Other current assets	0.000	4.688
Total Current Assets	801.840	1014.706
TOTAL	1137.489	1358.829

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		88.586
2] Share Application Money		0.000
3] Reserves & Surplus		214.093
4] (Accumulated Losses)		0.000
NETWORTH		302.679
LOAN FUNDS
1] Secured Loans		556.203
2] Unsecured Loans		0.000
TOTAL BORROWING		556.203
DEFERRED TAX LIABILITIES		5.795
TOTAL		864.677
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		137.968
Capital work-in-progress		149.145
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	573.890
	Sundry Debtors	382.754
	Cash & Bank Balances	25.377
	Other Current Assets	0.000
	Loans & Advances	28.516
Total Current Assets		1010.537
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	283.273
	Other Current Liabilities	145.865
	Provisions	13.210
Total Current Liabilities		442.348
Net Current Assets		568.189
MISCELLANEOUS EXPENSES		9.375
TOTAL		864.677

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	441.331	1021.068	1415.388
		Other Income	35.348	17.073	(6.374)
		TOTAL	476.679	1038.141	1409.013
Less	EXPENSES
		Cost of Materials Consumed	404.555	734.602
		Changes in Inventories of Finished Goods	(102.338)	(5.769)
		Employees Benefits Expenses	57.442	55.356
		Expenditure on production	31.111	74.907
		Other expenses	62.707	60.701
		TOTAL	453.477	919.797	1286.162
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		23.202	118.344	122.851
Less	FINANCIAL EXPENSES		109.405	92.841	64.938
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		(86.203)	25.503	57.413
Less/ Add	DEPRECIATION/ AMORTISATION		11.393	11.986	13.622
Add	PRIOR PERIOD ITEMS		0.000	16.351	(0.786)
	PROFIT / (LOSS) BEFORE TAX		(97.596)	29.868	44.577
Less	TAX		2.400	(1.137)	10.557
	PROFIT / (LOSS) AFTER TAX		(99.996)	31.005	34.020
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	180.073
	BALANCE CARRIED TO THE B/S		NA	NA	214.093
	EARNINGS IN FOREIGN CURRENCY		NA	NA	586.370
	IMPORTS
		Raw Materials	NA	NA	939.190
		Capital Goods	NA	NA	24.340
	TOTAL IMPORTS		NA	NA	963.530
	Earnings / (Loss) Per Share (Rs.)		(29.42)	(0.02)	3.84

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	20.98	2.99	2.41
Net Profit Margin (PBT/Sales)	(%)	(22.11)	2.93	3.15
Return on Total Assets (PBT/Total Assets}	(%)	8.58	2.59	3.88
Return on Investment (ROI) (PBT/Networth)		(0.69)	0.07	0.15
Debt Equity Ratio (Total Debt /Networth)		4.39	1.48	1.84
Current Ratio (Current Asset/Current Liability)		1.19	1.26	2.28

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	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 :

During the year, the Company has been severally impacted due to sudden demand downturn in SPV industry resulting from liquidity crisis in Europe, lower sales realization without commensurate fall in raw material prices, excess market capacity and underutilization of company capacity due to industry downturn.

Germany reduced feed-in-tariff from January 2011 and this gave farm developers time to wait for better pricing. Many countries reduced subsidy support to solar sector, in order to combat their fiscal deficit. This resulted in lower off take of solar products globally leading to reduced demand. This downturn was entirely unanticipated and had taken the industry by surprise.

The demand had suddenly eroded while the supply chain was in full ramp. This created an artificially high inventory pile-up in Asia as well as at European ports and the same resulted in over 60% price erosion worldwide. These factors also caused halt in operations of solar industry globally.

Titan also got affected severely and its operations showed heavy losses. Since beginning of the year, the plant was operating at a very low capacity. Production volumes for 2011-12 came to approx. 5.4 megawatt peak (MWP), 8% of its installed capacity. Liquidity has dried-up and the Company was a difficult position to service its debt. So, the Company has approached its bankers for restructuring of debts under Corporate debt restructuring scheme.

MANAGEMENT’S DISCUSSION AND ANALYSIS :

Industry Structure and Developments

There has been drastic downturn in Solar Photo voltaics industry leading to substantial fall in the revenue generating parameters like sales realization and capacity utilization leading to fall in sales. Presently, when upfront system costs are factored into cost per KW, the cost of solar power substantially exceeds the cost of power supplied by the electric utility grid in almost all locations. As a result, national and local governmental bodies in many countries, most notably in Germany, Spain, Italy, the United States, India and China, provided subsidies and economic incentives in the form of feed-in-tariffs, rebates, tax credits and other incentives to distributors, system integrators and manufacturers of solar power products in order to promote the use of solar energy in on-grid applications and to reduce dependence on other forms of energy.

However, due to global economic downturn, many countries reduced subsidy support to control their fiscal deficit. This resulted in lower off take for solar products globally leading to reduced demand. This policy reversal was entirely unanticipated and had taken the industry by surprise. Besides this, the demand of Solar Photovoltaics Moduls in the international market got seriously affected from early December 2010 and remained highly subdued due to early arrival of severe winter in Europe with heavy snow which stalled the installation process for almost two months. Further, the reduction in the Feed-in-Tariff in Germany gave investors time to wait for better pricing. The macro-economic problems in EU countries and consequent cuts in Solar Subsidies imposed by governments of European countries have affected sales realizations.

The entire global photovoltaic industry is reeling under losses. The demand had suddenly eroded while the supply chain was in full ramp. This created an artificially high inventory pile-up in Asia as well as at European ports and the same resulted in over 60% price erosion worldwide. These factors also caused halt in operations of solar industry globally.

FUTURE OUTLOOK :

The Indian solar energy sector has been growing constantly in the past few years and is projected to grow further in future due to Government’s initiatives such as tax exemptions and subsidies. Also with huge decline in the cost of solar power it has become more competitive than diesel.

According to the research report “Indian Solar Energy Market Outlook 2012 by RNCOS E-Services Private Limited. ”Indian solar energy industry exhibits huge potential to become one of the top producers of solar energy in the world incoming years. The sector is now receiving continuous support from both central and state governments.

As light is always at the end of tunnel, India emerged as the strongest market hub during the same time as per JNSM National Policy and Gujarat and other states taking the lead. The Indian PV industry hopes that its growth will support the establishment of a stable domestic manufacturing supply chain. According to the predictions of GTM report, by 2016 India could be installing more than 3000MW of PV projects annually. By then large-scale PV power plants might already be a common phenomenon, replacing traditional diesel plants. India is an emerging market and one of only a few countries where solar energy is encouraged on such a large scale.

PRESS RELEASE :

Titan energy ties up with spanish firms for supply of photo voltanic modules

March 30, 2012

Hyderabad-based solar photo voltaic (PV) module manufacturer, Titan Energy Systems limited, has partnered Ortiz Energia, a subsidiary of Euro 600-million Grupo Ortiz of Spain. Under the partnership, Titan Energy will provide PV modules and other services to PIH Energy, Spain, which is planning to develop a 100Mw solar power project in Gujarat by bringing in foreign direct investment (FDI).

“We were scouting for a renowned EPC partner and a developer who could bring in both equity and debt to set up power projects. While Ortiz is interested in setting up EPC projects, PIH has experience in global sourcing and arranging finances apart from having good knowledge in project implementation,” Rao SYS Chodagam, founder and managing director of Titan Energy, said here on Thursday.

According to Juan Camilo Echeverri, spokesperson for PIH Energy, his company will initially invest in securing approvals that also require mandatory deposits with the authorities to launch solar power projects and then bring equity investors and funding agencies from countries including the US.

A solar power project with a capacity of 100 Mw is currently at an approval stage in Gujarat and it targets to bid for another 200-Mw project in India, according to him. The government permits 100 per cent FDI in solar power development.

Chodagam said apart from the national targets, the fact that some people had bid solar projects at a rate of Rs 7 per unit under the National Solar Energy Mission, as against Rs 12-Rs 13 per unit cost being incurred on a diesel generator, provides ample space for captive solar plants in the days to come.

“Foreign funding agencies will find it attractive even with 7 per cent rate of return on investment unlike domestic financial institutions. That is why we also got the backup of global players,” he said.

Solar PV module manufacturers, who were severely impacted by the recent global recession, will now be having good domestic business opportunities in the light of the changed environment for the solar sector in the country, according to him.

Under the partnership entered with the two Spanish companies, Titan will supply PV modules for a capacity of 300 Mw to the developers, apart from providing operation and maintenance services to the projects.

Titan’s manufacturing facility has a capacity to produce 100-Mw solar modules a year.

Titan Energy Systems partners with Ortiz Energia to offer EPC Services & Solar

Power Plant Development in the country.

29th March 2012: India’s leading and well established solar PV module manufacturer and solar power plant EPC provider, Hyderabad-based Titan Energy Systems Limited. (TESL) partners with Ortiz Energia, a subsidiary of Grupo Ortiz, €600mn Spanish Group. This partnership is primarily to offer EPC Services and Solar Power Plant Development in the country.

Disclosing this while addressing a joint press conference by Titan Energy Systems Limited, Ortiz Energia Group and PIH Energy here in city today, Mr. Rao SYS Chodagam, Founder and Managing Director of Titan Energy Systems Limited said “the partnership is to jointly develop over 300MW of solar power plants in India, in addition to offering world class EPC and O&M services to independent power developers.” He also stated that this partnership would assure Titan an annual module sale of over 50 to 75 MWp to meet the requirements of these projects that are to be jointly executed. This partnership with Ortiz Energia includes Ortiz’s development partner PIH Energy, added Mr. Rao.

Speaking on the occasion Mr. Juan Camilo Echeverri, spokesperson for Ortiz Energia and PIH Energy, said “Ortiz Energia-PIH Energy after undertaking a due-diligence of major markets in the world, confirm with this partnership, that the Indian market offers a large growth potential in the energy sector, along with advantages of a fast growing economy and political stability. Under this partnership, Ortiz Energia and its development partner PIH Energy plan to bring their global expertise in development, EPC and operations of large power plants in Europe to India.”

Ortiz Energia-PIH Energy will also provide global sourcing and financing assistance to the partnership. Ortiz Energia has partnered with Titan, given its existing local presence in the solar industry as a leading PV module manufacturer and EPC services provider. The companies believe that their partnership offers a good mix of global expertise and local knowledge to the fast growing solar industry. The Ortiz Energia-Titan team will be offering their EPC and O&M expertise to existing solar power developers under various central and state government solar policies.

The partnership bring together the manufacturing and local know how of 20 years from the Titan Group, 50 Years of EPC in Infrastructure and Energy from Ortiz Group and 35 Years of experience in product sourcing, development and financing from PIH Energy. Further, Mr. Juan Echeverri stated “Our combined history and long term vision in the solar renewable sector will allow us to invest in India in the next 5 years of over €500 million made up of local/international equity, long term financing, sourcing of material and human resources”.

‘Grupo Ortiz’ has five main lines of business: Construction, Real Estate, Public Works, Energy and International. 50 year old, Ortiz group has four subsidiary firms amongst its 25 group companies, focusing in the Energy Area. Ortiz Energia has developed and maintains over 200MW of assets in renewable energy space including solar PV, CSP, wind and biomass. Ortiz Group is active in Poland, Peru, Colombia, Italy, France, Chile, Mexico, Brazil, Panama, Spain and currently entering India, South Africa and Dominican Republic.

Titan Energy Systems Limited has one of country’s largest module manufacturing facilities of 100MW capacity, along with end-to-end expertise in system integration, power plant design, engineering, construction and O&M services.

ORTIZ GROUP is an established Construction group of companies with more than 50 years of outstanding history and extensive experience. ORTIZ GROUP has five main lines of business: Construction, Real Estate, Public Works, Energy and International. Today the ORTIZ GROUP, a 100 % privately held Spanish company with 2011 revenues of over 600 Million Euros, Total Assets 835 Million and Net worth of over 300 Million. ORTIZ ENERGIA is a leader in the Renewable Energy sector with over 200Mw of EPC experience in various Renewable Technologies such as PV, CSP, Wind with additional experience in cogeneration, biomass, transport and distribution of MT/HT, Electrical, mechanical, conventional power stations (Coal, Nuclear, fuel combined cycle) and Maintenance and Operations. As a Group, it currently owns and operates 50Mw in CSP and 50 Mw of Wind.

PIH Energy is a power development company founded in 2009 by a team of professionals specialized in the development, financing, execution and operation of Renewable Energy projects. With combined experience of the management team in the Renewable Energy sector totaling more than 35 years. PIH Energy supports energy-intensive private industry, public bodies, project developers, investors and financial institutions in the analysis, development and execution of projects in the Renewable Energy sector. PIH’s core business areas are the promotion, development and construction of Utility scale ground-mounted photovoltaic and Wind Power Plants. Currently the company is diversifying its portfolio in India (70Mw), Mexico (60Mw), Chile (10Mw) and Middle East (50Mw).

Titan, established in 1991, has over 20 years of experience in solar PV manufacturing, EPC and O&M services. Titan has a 100MW state-of-the-art solar PV module manufacturing plant near Hyderabad. Additionally it has end-to-end expertise in

Offering turnkey solutions for solar power plant EPC and O and M services. Titan with over 200 employees has been serving some of the largest and most demanding international markets and customers in Europe, US and Asia. The focus on product quality,

Manufacturing excellence and customer service has allowed it to win and sustain long term supply contracts with some of the world’s leading energy players. In addition Titan also offers system integration and custom solution development for off-grid solutions for semi-urban and rural markets across the country. Titan also offers O&M services to several solar power plants across India.

FIXED ASSETS

· Land

· Leasehold Land

· Building

· Plant and machinery

· Electrical Equipment

· Furniture and Fixtures

· Office Equipment

· Computers

· Vehicle

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. 60.34
UK Pound	1	Rs. 90.79
Euro	1	Rs. 77.81

INFORMATION DETAILS

Report Prepared by :

NIS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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.