MIRA INFORM REPORT

Report Date :

15.03.2012

IDENTIFICATION DETAILS

Name :	INDOSOLAR LIMITED

Formerly Known As :	ROBIN GARMENTS PRIVATE LIMITED ROBIN SOLAR PRIVATE LIMITED

Registered Office :	C-12, Friends Colony (East), New Delhi – 110065

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	08.04.2005

Com. Reg. No.:	55- 134879

Capital Investment / Paid-up Capital :	Rs.3351.440 Millions

CIN No.: [Company Identification No.]	L18101DL2005PLC134879

TAN No.: [Tax Deduction & Collection Account No.]	DELP13350B/ DELR15134A

PAN No.: [Permanent Account No.]	AAECP2108F/ AADCR2872D

Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.

Line of Business :	Manufacturer of Photovoltaic Solar Cells

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (15)

RATING

STATUS

PROPOSED CREDIT LINE

11-25

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

Limited with full security

Status :	Moderate

Payment Behaviour :	Slow and delayed

Litigation :	Clear

Comments :	Subject is a company having moderate track. There appears huge dip in the sale turnover during 2012. It has incurred heavy seems to be increasing over years. The company’s liquidity is weak mainly because of a slowdown in the offtake of its products in its major market, Europe. The market price of the company’s hare is underpriced. Business is active. Payments are reported to be slow and delayed. The company can be considered for business dealings on a safe and secured 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

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	CRISIL D (Term Loan)
Rating Explanation	Default
Date	18.11.2011

Rating Agency Name	CRISIL
Rating	CRISIL D (Cash Credit Limit)
Rating Explanation	Default
Date	18.11.2011

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.

LOCATIONS

Registered Office/ Factory 1 :	C-12, Friends Colony (East), New Delhi – 110065, India.
Tel. No.:	91-11-26841375/ 26311706
Fax No.:	91-11-26843949
E-Mail :	atul.mittal@indosolar.co.in info@indosolar.co.in
Website :	www.indosolar.co.in
Area:	1000 Sq.mtr (Registered office) 8 Acres (Factory) (Owned)

Corporate Office/ Factory2 :	3C/1, Ecotech – II, Udyog Vihar, District Gautam Budh Nagar, Greater Noida 201306, Uttar Pradesh, India.
Tel. No.:	91 120 4762500
Fax No.:	91 120 4762533/ 4762525

DIRECTORS

(AS ON 31.03.2011)

Name :	Mr. Bhushan Kumar Gupta
Designation :	Chairman cum Managing Director
Address :	C-12, Friends Colony (East), New Delhi 110 065, India
Date of Birth/Age :	26.01.1936
Qualification :	Entrepreneur
Date of Appointment :	25.09.2009
DIN No.:	00168071

Name :	Mr. Hulas Rahul Gupta
Designation :	Managing Director
Address :	C-12, Friends Colony (East), New Delhi 110 065, India
Date of Birth/Age :	24.10.1959
Qualification :	B.B.A.
Date of Appointment :	25.09.2009
DIN No.:	00297722

Name :	Mr. Anand Kumar Agarwal
Designation :	Executive Director and Chief Financial Officer
Address :	38, R P S Flats, Sheikh Sarai Phase-I, New Delhi 110 017 India
Date of Birth/Age :	07.07.1949
Qualification :	A.C.A.
Date of Appointment :	25.09.2009
DIN No.:	00155299

Name :	Mr. Aditya Jain
Designation :	Independent Non Executive Director
Address :	F-63, Radhe Mohan Drive, Gadaipur Bandh Road, Chatarpur, Mehruali, New Delhi 110074, India
Date of Birth/Age :	27.10.1960
Date of Appointment :	14.12.2009
Email :	aditjain@pacific.net.sg
DIN No.:	00835144

Name :	Mr. Ravinder Khanna
Designation :	Independent Non Executive Director
Address :	A-804, Central Park, Sector-42, Gurgaon, Haryana, India
Date of Birth/Age :	26.02.1959
Date of Appointment :	14.12.2009
Email :	ravikhanna59@gmail.com
DIN No.:	01005216

Name :	Mr. Gautam Singh Kuthari
Designation :	Independent Non Executive Director
Address :	Bargola Building, Fancy Bazar, Guwahati, Assam, 781001
Date of Birth/Age :	31.08.1959
Date of Appointment :	31.05.2010
Email :	gkuts@yahoo.com
DIN No.:	00945195

KEY EXECUTIVES

Name :	Mr. Atul Kumar Mittal
Designation :	Company Secretary and Compliance Officer
Address :	21-B, Pocket – C, Mayur Vihar Phase – II, Delhi – 110091, India
Date of Birth/Age :	10.04.1959
Date of Appointment :	25.09.20090

Name :	Mr. Uma Shankar
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.06.2012)

Category of Shareholders	No. of Shares	Percentage of Holding

(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	136,885,497	40.84
Sub Total	136,885,497	40.84

(2) Foreign
Bodies Corporate	70,114,500	20.92
Sub Total	70,114,500	20.92

Total shareholding of Promoter and Promoter Group (A)	206,999,997	61.76

(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	15,915,746	4.75
Foreign Institutional Investors	56,793	0.02
Sub Total	15,972,539	4.77

(2) Non-Institutions
Bodies Corporate	23,203,404	6.92

Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	46,151,267	13.77
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	32,073,996	9.57

Any Others (Specify)	10,742,824	3.21
Trusts	42,644	0.01
Non Resident Indians	2,348,606	0.70
Overseas Corporate Bodies	3,640,579	1.09
Clearing Members	331,157	0.10
Hindu Undivided Families	4,375,838	1.31
Foreign Nationals	4,000	-
Sub Total	112,171,491	33.47

Total Public shareholding (B)	128,144,030	38.24

Total (A)+(B)	335,144,027	100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-

Total (A)+(B)+(C)	335,144,027	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Photovoltaic Solar Cells

Products :

Products Description

Item Code No.

Photovoltaic Solar Cells

8541

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production

Solar Cells	Nos.	NA	NA	*52560000
Solar Modules	--	--	--	0.000

*Solar Cells excludes 3,217,061 (Previous Year: Nil) produced and dispatched under job work arrangement

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Corporation Bank

Industrial Finance Branch, 1ST Floor, 16/10, Main Arya Samaj Road, Karol Bagh, New Delhi 110 005, India

Telephone: +91 11 2875 7455/ 2875 7639

Facsimile: +91 11 28750956

Email: cb447@corpbank.co.in

Contact Person: Mr. V. S.Karthikeyan

Website: www.corpbank.com

Indian Bank

G-41, Connaught Circus, New Delhi 110 001, India

Telephone: +91 11 2371 2162/ 2371 2164

Facsimile: +91 11 2371 8418

Email: ibnewdelhimain@vsnl.net

Contact Person: Mr. G. Rangarajan

Website: www.indianbank.in

Union Bank of India

Industrial Finance Branch,

M-11, 1ST Floor, Middle Circle Connaught Circus, New Delhi 110 001, India

Telephone: +91 11 2341 7401 - 07

Facsimile: +91 11 2341 7405

Email: ifbcp@unionbankofindia.com

Contact Person: Mr. Pankaj Sharma

Website: www.unionbankofindia.com

Bank of Baroda

Ground Floor, Bank of Baroda Building, 16,Sansad Marg, New Delhi 110 001

Telephone: +91 11 2331 0349

Facsimile: +91 11 2371 1267

Email: indel@bankofbaroda.com

Contact Person: Mr. R.K.Arora

Website: www.bankofbaroda.com

Andhra Bank

M-35, Connaught Place, New Delhi 110 001, India

Telephone: +91 11 2341 5616

Facsimile: +91 11 2341 6043

Email: bmdel084@andhrabank.co.in

Contact Person: Mr. C.Bala Subramanyam

Website: www.andhrabank.in

Bank of Baroda

Corporate Financial Services Branch, Parliament Street, New Delhi-110001, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Term loans from banks # [Due within one year Rs.920.000 Millions]	3678.024	4583.375
Short term working capital loan from banks
- Cash credit	461.762	269.348
- Packing credit	153.414	71.042
- Buyers credit	210.061	193.583
- Bill Discount	270.272	0.000
Short term loan from bank	470.000	250.000
Vehicles Loan	1.467	--

Total	5245.000	783.973
Secured by first mortgage of all immovable properties of the Company, both present and future and leasehold land, ranking pari-passu with all charge holders, being lending banks forming a consortium. Secured by a first charge by way of hypothecation of all moveable properties, including moveable machinery, machinery procured under letter of credit, machinery spares, equipments, electrical fittings, air conditioners, power generators insulation, installations, fixtures, vehicles, movables and other assets, construction equipments, tools and accessories, both present and future, ranking pari-passu with all charge holders, being lending banks forming a consortium. Secured by an assignment of: (i) all the escrow account and all rights and interests therein, present and future; (ii) the right, title and interest, by way of first charge, in and under all of the project documents, contracts, licenses, permits, consents; indemnities and securities that may be furnished by any counter party under any project documents or contracts in favour of the Company after obtaining the written consent of the parties thereto, if necessary; and (iii) the right, title and interest in, by way of first charge, all government approvals, insurance policies. The loan facilities are further secured by the pledge of 51% of the equity share capital held by the promoters of the Company. The loan facilities are also secured by way of personal guarantees given by the Directors of the Company i.e. Mr. B. K. Gupta and Mr. H.R. Gupta. Secured by pari-passu first charge on inventory, book debts and current assets of the company. Secured by first charge by way of hypothecation on pari-passu basis of all those machinery, plant, capital goods and other assets purchased or to be purchased whether installed or not. Further secured by way of hypothecation of all plant and machinery installed at factory building on parri-passu with other banks.
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)

Loan form Directors	0.000	70.000

Total	0.000	70.000


Banking Relations :	--

Auditors :
Name :	B S R and Associates Chartered Accountants
Address :	Building No.10, 8th Floor, Tower-B, DLF, Cyber City, Phase-II, Gurgaon - 122002, India
Tel. No.:	91-124-3074000
Facsimile :	91-124-2549101
E-Mail :	vadvani@kpmg.com

Internal Auditors :
Name :	Ernst and Young Private Limited Chartered Accountants
Address :	Golf View Corporate Tower-B, Sector-42, Sector Road, Gurgaon – 122002, Haryana, India

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount

500000000	Equity Share	Rs.10/- each	Rs.5000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

335144027	Equity Shares	Rs.10/- each	Rs.3351.440 Millions

NOTE:

Shares issued for consideration other than cash includes 185,000,000 equity shares of Rs.10/- each and 15,000,000 equity shares of Rs. 0.50 each partly paid that were issued to the shareholders of erstwhile Indosolar Limited in earlier years which amalgamated with the Company, pursuant to the scheme of amalgamation. Such partly paid equity shares were made fully paid prior to the effective date of scheme of amalgamation.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2019
SHAREHOLDERS FUNDS
1] Share Capital		3351.440	2084.000	0.100
2] Share Application Money		0.000	151.650	0.000
3] Reserves & Surplus		2148.759	36.400	0.000
4] (Accumulated Losses)		(1376.854)	(802.460)	(138.623)
5] Equity shares to be issued pursuant to the scheme of amalgamation		0.000	0.000	1892.400
NETWORTH		4123.345	1469.590	1753.877
LOAN FUNDS
1] Secured Loans		5245.000	5367.348	2448.319
2] Unsecured Loans		0.000	70.000	0.000
TOTAL BORROWING		5245.000	5437.348	2448.319
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		9368.345	6906.938	4202.196

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		5948.902	6533.926	702.405
Capital work-in-progress		1190.901	100.612	3627.585

INVESTMENT		660.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	998.668	773.383	29.472
	Sundry Debtors	630.819	231.050	0.000
	Cash & Bank Balances	418.829	241.097	307.105
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	170.775	137.147	73.427
Total Current Assets		2219.091	1382.677	410.004
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	601.120	1014.189	526.175
	Other Current Liabilities	44.478	120.336	7.745
	Provisions	4.951	2.713	3.878
Total Current Liabilities		650.549	1137.238	537.798
Net Current Assets		1568.542	245.439	(127.794)

MISCELLANEOUS EXPENSES		0.000	26.961	0.000

TOTAL		9368.345	6906.938	4202.196

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2019
	SALES
		Income	5434.019	1125.167	0.000
		Other Income	476.279	189.618	7.396
		TOTAL (A)	5910.298	1314.785	7.396

Less	EXPENSES
		(Increase)/decrease in stock	(276.675)	(296.740)	0.000
		Manufacturing expenses	5443.541	1614.565	0.000
		Personnel costs	121.894	84.976	47.693
		Selling, administrative and other expenses	317.599	115.831	36.183
		Exceptional Items	(316.765)	0.000	0.000
		TOTAL (B)	5289.594	1518.632	83.876

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		620.704	(203.847)	(76.480)

Less	FINANCIAL EXPENSES (D)		676.677	271.876	0.319

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(55.973)	(475.723)	(76.799)

Less/ Add	DEPRECIATION/ AMORTISATION (F)		518.286	187.362	5.706

	PROFIT BEFORE TAX (E-F) (G)		(574.259)	(663.085)	(82.505)

Less	TAX (H)		0.135	0.752	0.576

	PROFIT AFTER TAX (G-H) (I)		(574.394)	(663.837)	(83.081)

	EARNINGS IN FOREIGN CURRENCY		5383.221	1049.457	0.000

	IMPORTS
		Raw Materials	5114.750	1529.440	26.210
		Capital Goods	11.534	2372.610	275.287
	TOTAL IMPORTS		5126.284	3902.050	301.497

	Earnings Per Share (Rs.)		(2.09)	(3.32)	(1.06)

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011	31.03.2012	30.06.2012
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter	5^th Quarter
Net Sales	402.810	361.000	87.720	7.820	0.770
Total Expenditure	822.460	896.230	337.980	220.380	44.460
PBIDT (Excl OI)	(419.650)	(535.230)	(250.260)	(212.560)	(43.690)
Other Income	16.400	9.540	8.950	198.370	7.660
Operating Profit	(403.250)	(525.570)	(241.310)	(14.190)	(36.030)
Interest	173.320	190.450	200.010	120.850	129.540
Exceptional Items	0.000	0.000	0.000	92.110	9.380
PBDT	(576.570)	(716.020)	(441.320)	(42.920)	(156.190)
Depreciation	88.010	89.190	70.510	94.470	75.260
Profit Before Tax	(664.580)	(805.210)	(511.830)	(137.390)	(231.450)
Tax	0.000	0.000	0.000	0.000	0.000
Provisions and contingencies	0.000	0.000	0.000	0.000	0.000
Profit After Tax	(664.580)	(805.210)	(511.830)	(137.390)	(231.450)
Extraordinary Items	2.920	0.000	92.450	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000	0.000
Net Profit	(661.670)	(805.210)	(419.380)	(137.390)	(231.450)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(9.72)	(50.49)	(1123.32)

Net Profit Margin (PBT/Sales)	(%)	(10.57)	(58.93)	(0.00)

Return on Total Assets (PBT/Total Assets}	(%)	(7.03)	(8.38)	(7.42)

Return on Investment (ROI) (PBT/Networth)		(0.14)	(0.45)	(0.05)

Debt Equity Ratio (Total Liability/Networth)		1.43	4.47	1.70

Current Ratio (Current Asset/Current Liability)		3.41	1.22	0.76

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	Yes
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	No
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	No
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 reported total income of Rs.5910.300 Millions as against Rs.1314.800 Millions last year. After making for provision of Rs.635.200 Millions towards interest and Rs.518.300 Millions towards depreciation, the current financial year closed with a loss of Rs.574.400 Millions as against loss of Rs.663.800 Millions last year.

The Company is operating two SPV cell manufacturing lines of 80 MW each. First line commenced commercial production in July, 2009 and second line commenced commercial production in March, 2010. First line continued its operations smoothly, however, operations of second line stabilized only during October, 2010. This resulted in higher raw material consumption, excessive wastage, lower product efficiency and high operating cost. In view of delay in stabilization of operations of second line, the equipment supplier has given a cash support of Euro 5.00 million towards operational losses and Euro 1.50 million for delay in supply of machinery.

MANAGEMENT’S DISCUSSION AND ANALYSIS

OVERVIEW

They manufacture poly-crystalline solar photo-voltaic (“SPV”) cells from silicon wafers utilizing crystalline silicon SPV cell technology for converting sunlight directly into electricity through a process known as the “photo-voltaic effect”. They market and sell their products to primarily module manufacturers on a business-to-business (“B2B”) platform, who in turn supply to the system integrators who install the systems for grid and off-grid (roof top) applications for use in the domestic market as well as markets in Europe, Spain, Japan, Asia, Canada and USA.

The ability to procure poly-silicon wafers at low cost and expand their customer base is critical to their business. Economies of scale, ability to enhance operational and SPV cell efficiency and pricing strategy are the other fundamental enablers in their business.

They commenced work for setting up of their SPV cell manufacturing facility in Greater Noida in January 2008. They have established two SPV cell manufacturing lines having an aggregate annual manufacturing capacity of 160 MW. They commenced commercial production of SPV cells in July 2009 with one manufacturing line having an annual manufacturing capacity of 80 MW. The second manufacturing line having an equal capacity commenced commercial production in March 2010. In order to prepare for an increase in demand for SPV products in the future and to enhance scale to a competitive level, they plan to increase their annual manufacturing capacity to approximately 360 MW with one additional manufacturing line of annual manufacturing capacity of 200 MW. The capacity expansion will also enable them to manufacture “Mono Crystalline SPV Cells”.

They use fully automated horizontal in-line, state-of-the-art technology for manufacture of SPV cells which offers average efficiency levels of up to 16.30%. They have entered into arrangements with Schmid Technology Systems GmbH (“Schmid”), one of the operators in SPV cell manufacturing technology and a vertically integrated player in the SPV cell industry, for delivery, installation and commissioning of the plant and machinery at their facility, on a turnkey basis. As part of their manufacturing capacity expansion plans, they propose to install ‘selective emitter’ technology in one of their SPV manufacturing lines to be commissioned by their turnkey provider, Schmid. ‘Selective emitter’ technology will give capability to produce improved SPV cells of higher average efficiency up to 17.20%. The research and development team comprising three solar photo-voltaic and semi conductor researchers and scientists focuses on continually enhancing their SPV cell Conversion Efficiencies and improving their manufacturing operations.

The management believes that it is preferable to follow a flexible mix of long term and spot market for procurement of silicon wafers. Other raw materials such as chemicals, silver and aluminium pastes are also procured from various suppliers at the prevailing market prices.

The Company is one of the few companies selected by the Government of India for grant of financial incentives under the “Special Incentive Package Scheme” of 2007 notified by the Government of India. They have been granted an in principle approval on 1st June, 2009 by Ministry of Communication and Information Technology, Government of India and have applied for formal approval on 31st March, 2010.

Expansion of Manufacturing Capacity and Capacity Utilisation

Capacity and capacity utilization are key factors in growing their net revenue and profit. In order to accommodate the growing demand for their products, they plan to expand their manufacturing capacity. Increase in capacity has a significant effect on their financial results, both by allowing them to produce and sell more SPV cells and achieve higher revenue and by lowering their manufacturing costs as a result of economies of scale.

They have been attempting to maximize the utilization of their available manufacturing capacity as it comes on-line, so as to allow them to spread their fixed costs over a higher production volume, thereby reducing their per unit and per MW fixed costs. They intend to expand their existing manufacturing capacities to increase their productivity and output and to meet the growing demand for SPV cells. As part of their plans to expand Their manufacturing capacity, They have decided to increase their annual manufacturing capacity to approximately 360 MW from the existing 160 MW.

FUTURE OUTLOOK

The business and revenue growth depends on SPV industry demand. There has been a significant growth of the SPV cell market in the past. They believe that the near-term growth of the market for SPV products depends largely on the availability and size of government subsidies and economic incentives. They believe that countries such as Germany, Italy, Japan and USA have in the past, and continue to exhibit strong demand for products similar to those manufactured by them, as customers in such jurisdictions are strongly motivated by environmental concerns. India and China are the latest addition to the list of such countries.

They believe that Governments in such countries will continue to support through incentives such as “feed-in tariffs”, “green certificates”, capital cost rebates, tax credits, net metering and other incentives to end-users, distributors, system integrators and manufacturers of solar power products, including SPV products, in furtherance of their efforts to achieve ‘grid parity’ and in order to promote the use of solar energy in on-grid applications and to reduce dependence on other forms of energy. There are certain criteria in relation to promotion of domestic content in the implementation of the Jawaharlal Nehru National Solar Mission (JNNSM) program which mandate that in a phased manner, all deployment in grid connected solar power be done only through SPV cells and modules manufactured in India. Such initiatives have the potential to create demand for SPV cells manufactured by them.

THE BUSINESS STRATEGY

(a) Expand existing production capacities to achieve economies of scale;

(b) Improve their product portfolio with “Mono Cells”;

(d) Explore activity expansion in the downstream areas;

(e) Expand their customer base, diversify their sales effort and pursue a proactive marketing program;

(f) To pursue opportunities and participate in solar power projects incentivised by the Governmental authorities in India and abroad;

(g) Flexible approach for procurement of key raw materials at favourable prices;

(h) Continue to reduce their per Watt manufacturing costs, increase the throughput of their production lines and enhance their SPV cell Conversion Efficiencies; and

(i) Implement stricter cash management and control measures.

FINANCIAL PERFORMANCE VIZ-A-VIZ OPERATIONAL PERFORMANCE

The Company’s Net Sales were Rs.5434.000 Millions as against Rs.1125.200 Millions last year. EBITDA was Rs.579.200 Millions as against of Rs.(-)221.400 Millions last year. The Company produced photovoltaic solar cells of 109.490 MWp as against 25.280 MWp last year.

CONTINGENT LIABILITIES:

(a) Bills discounted with banks outstanding as at 31st March 2011 Rs. Nil. (Previous year: Rs.115.161 Millions).

(b) Estimated amount of contracts remaining to be executed on capital account (net of advances) not provided for Rs. 2690.316 Millions (Previous year Rs.11.529 Millions).

FIXED ASSETS:

· Leasehold land

· Building - Factory

· Building - Non Factory

· Building (Temporary Structure)

· Plant and Machinery

· Furniture and Fixtures

· Office equipment

· Vehicles

· Computers

WEBSITE DETAILS:

PROFILE:

Subject is the leading Indian manufacturer of solar photovoltaic cells. Current manufacturing capacity is 160 MWp with an average efficiency rating of 16+%, peaking at 17.2%. Production capacity will be expanded to 360 MWp by end of fiscal year 2011, and Line C will have the capability to produce both multi and mono crystalline cells. Machinery and technology have been supplied by industry leader, SCHMID GMBH, on a turnkey basis.

Located in Greater Noida, Uttar Pradesh, India the facility is 55km from New Delhi International Airport. Indosolar, a 300000 square feet institute accommodating up to four production lines, is a unique facility in the rapidly developing Indian economic landscape.

At company, they are committed to achieving the highest standards for stakeholders and shareholders alike, and it is their utmost priority to succeed in all dynamics of a global business.

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] 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.54.44
UK Pound	1	Rs.81.33
Euro	1	Rs.70.50

INFORMATION DETAILS

Report Prepared by :

SDA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	--
--CREDIT LINES	1~10	2
--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
TOTAL		15

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.

MIRA INFORM REPORT

998.668

773.383

630.819

231.050

418.829

241.097

0.000

0.000

170.775

137.147

2219.091

1382.677

601.120

1014.189

44.478

120.336

4.951

2.713

650.549

1137.238

1568.542

245.439

(9.72)

(50.49)

(10.57)

(58.93)

(7.03)

(8.38)

(0.14)

(0.45)

1.43

4.47

3.41

1.22

Unit