MIRA INFORM REPORT

Report Date :

26.03.2013

IDENTIFICATION DETAILS

Name :	JYOTI POWER CORPORATION PRIVATE LIMITED (w.e.f 27.04.2011)
Formerly Known As :	JYOTI ENGINEERS AND CONTRACTORS PRIVATE LIMITED
Registered Office :	Matru Jyot, 1st Floor, Opposite Agro Petrol Pump, Gondal, Rajkot-360311, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.03.2006
Com. Reg. No.:	04-048048
Capital Investment / Paid-up Capital :	Rs. 241.715 millions
CIN No.: [Company Identification No.]	U45204GJ2006PTC048048
TAN No.: [Tax Deduction & Collection Account No.]	RKTJ01382D
PAN No.: [Permanent Account No.]	AABCJ6662R
Legal Form :	Private Limited Liability Company
Line of Business :	The Company is engaged in the business of erection and maintenance of Power Lines and Sub Station.
No. of Employees :	45 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

B (37)

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

Maximum Credit Limit :	USD 3820000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Latest financial for the year 2012 is not available. From the financial 2011 it seems that the company has recorded some external borrowings which seem to be increasing over years. However, there also seems a growth in the turnover profitability of the company. Trade relations are reported as fair. Business is active. Payment terms are unknown. The company can be considered for business dealings with some 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	A4+ (Short term rating)
Rating Explanation	Minimal degree of safety. It carry very high credit risk.
Date	September, 2012

Rating Agency Name	CARE
Rating	BB+ (Long term rating)
Rating Explanation	Moderate risk of default.
Date	September, 2012

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

INFORMATION PARTED BY [GENERAL DETAILS]

Name :	Mr. Kalpesh Patel
Designation :	Accounts Department
Contact No.:	91-2717-233037

LOCATIONS

Registered Office :	Matru Jyot, 1st Floor, Opposite Agro Petrol Pump, Gondal, Rajkot-360311, Gujarat, India
Tel. No. :	91-2825-223249
Fax No.:	91-2825-223249
E-Mail :	jyotieng@yahoo.com
Corporate Office :	Rajtilak Plaza, 3^rd Floor, Opposite IOC Petrol Pump, Bopal - Ghuma Road, Bopal, Ahmedabad - 380058, Gujarat, India
Tel. No.:	91-2717-233037 / 47
Fax No.:	91-2717-233037 / 47

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Nitesh Mavji Kataria
Designation :	Director
Address :	“Meghdoot”, Near Ramji Mandir, K. V. Road, Rajkot, Gondal-360311, Gujarat, India
Date of Birth/Age :	30.06.1968
Date of Appointment :	30.03.2006
PAN No.:	ADKPK1838M
DIN No.:	00055622
Name :	Mr. Kamlesh Mavjibhai Katariya
Designation :	Managing director
Address :	“Meghdoot”, Near Ramji Mandir, K. V. Road, Rajkot, Gondal-360311, Gujarat, India
Date of Birth/Age :	20.01.1970
Date of Appointment :	30.03.2006
PAN No.:	ADWPK7228B
DIN No.:	00055811
Name :	Mr. Mavjibhai Meghjibhai Kantaria
Designation :	Director
Address :	“Meghdoot”, Near Ramji Mandir, K. V. Road, Rajkot, Gondal-360311, Gujarat, India
Date of Birth/Age :	14.09.1940
Date of Appointment :	01.11.2009
PAN No.:	ACUPK9912F
DIN No.:	00055762
Name :	Mr. Niraj Vinodrai Vasavada
Designation :	Whole-time director
Address :	Vishvakarma Society, Street No.4, Sadhu Vasvani Road, University Road, Rajkot-360001, Gujarat, India
Date of Birth/Age :	27.12.1959
Date of Appointment :	17.09.2007
PAN No.:	AARPV9886E
DIN No.:	01732356

KEY EXECUTIVES

Name :	Mr. Kalpesh Patel
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Kamlesh Mavjibhai Kataria	11673200
Nitesh Mavjibhai Kataria	11673200
Lata Kamlesh Kataria	350000
Nayna Nitesh Kataria	350000
Ranchhodbhai Ganeshbhai Kher	12500
Manjibhai Dayabhai Gohel	12500
Hansa Sureshbhai Kataria	12460
Mavjibhia M. Kataria	87500
Ganpat A. Kataria	5
Valji J. Dabhi	5
Suresh K. Kataria	5
Jasang M. Dabhi	5
Keshubhai M. Dabhi	5
Pratap K. Dabhi	5
Mahipal M. Singhav	5
Jayprakash S. Kataria	5
B. N. Dod	5
G. T. Dabhi	5
G. A. Thavani	5
Shyam Nitinkumar Raichura	50
Nitinkumar Jayantilal Raichura	50
TOTAL	24171515

AS ON 07.12.2012

Names of Allottees	No. of Shares
EMC Engineering Enterprises	3100000
Kamlesh Mavjibhai Kataria	525000
Mavjibhia M. Kataria	200000
Nitesh Mavjibhai Kataria	525000
Rajkamal Power Engineering	2950000
Ghelabhai T. Dabhi	350000
Jayprakash S. Kataria	1525000
Mahipal M. Singhav	1220000
Suresh K. Kataria	1500000
Valji J. Dabhi	1440000
TOTAL	13335000

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	99.50
Other top fifty shareholders	0.50
TOTAL	100.00

BUSINESS DETAILS

Line of Business :	The Company is engaged in the business of erection and maintenance of Power Lines and Sub Station.
Products :	Erection Installation of Towers High-tension Electric Lines

GENERAL INFORMATION

No. of Employees :

45 [Approximately]

Bankers :

Bank of India, Rajkot Mid Corporate Branch, 1^st Floor, BOI Building, Para Bazar, Rajkot - 360001, Gujarat, India

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	96.782	95.337
Working capital loans banks secured	415.827	103.777
Loans taken for vehicles secured	8.458	10.955
TOTAL	521.067	210.069

Banking Relations :	--
Auditors :
Name :	P B Dadhaniya and Company Chartered Accountants
Address :	514, Star Plaza, Phulchhab Chowk, Rajkot, Gujarat, India
PAN No.:	ABRPD4339N
Associates :	JES Projects Private Limited, India CIN No.: U74990GJ2005PTC046662 Jyoti Power Transmission Private Limited, India CIN No.: U40109GJ1996PTC030323
Subsidiary :	JHT Power Engineering Private Limited, India CIN No.: U45204GJ2001PTC039577
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	EMC Engineering Enterprise

CAPITAL STRUCTURE

AFTER 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs.10/- each	Rs.400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
37506515	Equity Shares	Rs.10/- each	Rs.375.065 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs.10/- each	Rs.300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
24171515	Equity Shares	Rs.10/- each	Rs.241.715 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		241.715	25.000	5.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		713.528	224.956	146.818
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		955.243	249.956	151.818
LOAN FUNDS
1] Secured Loans		521.067	210.069	408.440
2] Unsecured Loans		805.652	309.065	13.725
TOTAL BORROWING		1326.719	519.134	422.165
DEFERRED TAX LIABILITIES		32.096	17.455	0.000
TOTAL		2314.058	786.545	573.983
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		604.586	272.130	85.357
Capital work-in-progress		0.854	3.263	0.000
INVESTMENT		3.410	3.380	2.585
DEFERRED TAX ASSETS		0.000	0.000	0.618
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	461.490	300.523	238.614
	Sundry Debtors	1383.485	1483.554	1251.128
	Cash & Bank Balances	209.284	471.284	45.230
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1075.021	235.082	458.167
Total Current Assets		3129.280	2490.443	1993.139
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	671.913	867.247	1476.620
	Other Current Liabilities	688.558	1092.728
	Provisions	63.968	23.257	31.850
Total Current Liabilities		1424.439	1983.232	1508.470
Net Current Assets		1704.841	507.211	484.669
MISCELLANEOUS EXPENSES		0.367	0.561	0.754
TOTAL		2314.058	786.545	573.983

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	3479.837	2555.783	2095.757
		Other Income
		TOTAL	3479.837	2555.783	2095.757
Less	EXPENSES
		Office Expenses	3252.792	2436.456	2008.336
		Administrative Expenses
		Advertising Expenses
		TOTAL	3252.792	2436.456	2008.336
	PROFIT/ (LOSS) BEFORE TAX		227.045	119.327	87.421
Less	TAX		78.278	41.165	31.857
	PROFIT/ (LOSS) AFTER TAX		148.767	78.162	55.564
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	146.818	90.519
	BALANCE CARRIED TO THE B/S		NA	224.956	146.818
	Earnings / (Loss) Per Share (Rs.)		6.15	31.26	111.13

Particulars	31.03.2012
Sales Turnover [Approximately]	3654.139

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.28	3.06	2.65
Return on Total Assets (PBT/Total Assets}	(%)	6.08	4.32	4.21
Return on Investment (ROI) (PBT/Networth)		0.24	0.08	0.58
Debt Equity Ratio (Total Debt/Networth)		1.39	2.08	2.78
Current Ratio (Current Asset/Current Liability)		2.20	1.26	1.32

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	No
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

REVIEW OF PERFORMANCE:

The goods sale was increased from Rs. 1763.300 Millions in the previous year to Rs. 2289.800 Millions. Similarly job work income was increased from Rs. 279.900 Millions to Rs. 598.700 Millions. As a result, the profit before tax has been increased from Rs. 119.300 Millions of previous year to Rs. 227.000 Millions during the year. Similarly net profit has been increased from Rs. 78.200 Millions to Rs. 148.800 Millions. Thus there is overall increase in sales, profit before and after tax.

The Company could continue to achieve the better financial results as compared to previous year. Year by year the Company increases its production capacity and increases the turnover of the Company. The year was also not an exception which can be seen from the above stated financial results.

MERGER:

With a view to consolidate the financial and operational strength and to get the benefits of economies of scale, the Board is in the process of getting M/s. JHT Power Engineering Private Limited, Company’s Subsidiary Company merged with the Company. The Company has taken primary steps for the same and further actions shall be taken in the due course of time.

UNSECURED LOAN

Unsecured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. In Millions)
Rupee term loans banks unsecured	100.000	0.000
Working capital loans financial institutions unsecured	108.174	0.000
Loans directors unsecured	187.016	58.603
Other debt unsecured	410.462	250.462
Total	805.652	309.065

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U45204GJ2006PTC048048
Name of the company	JYOTI POWER CORPORATION PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Matru Jyot, 1st Floor, Opposite Agro Petrol Pump, Gondal, Rajkot-360311, Gujarat, India Email: jyotieng@yahoo.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10317502
Type of charge	Immovable property
Particular of charge holder	Bank of India, Rajkot Mid Corporate Branch, 1^st Floor, BOI Building, Para Bazar, Rajkot - 360001, Gujarat, India Email: mcb.rajkot@bankofindia.co.in
Nature of instrument creating charge	Mortgage Deed ( Without Possession)
Date of instrument Creating the charge	19.12.2012
Amount secured by the charge	Rs. 350.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC and Retention Money Discounting[sub limit of CC: 3.50% over Bank Rate Presently 14.00% p.a. with monthly rests. BG (I/F): Rs.180+1% pa. for min 2 quarters + service tax. LC(I/F)DP/DA: as applicable Terms of Repayment As per Sanction Margin CC (Hypothecation of stock): 25% CC (Book Debts): 40% Retention Money Discounting [ sub limit of CC BD] : 40% for other receivables upto 90 days, 30% for Govt. Company and PSU upto 270 days Bank Guarantee: 10% cash LC (I/F) DP/DA: 10% cash Extent and Operation of the charge The charge being immovable properties as stated in Mortgage Deed Dated 19.12. 2012 read with sanction letter relates to charge based on STAND ALONE documents for Rs. 350.000 millions granted by the Bank of India, pending execution of Joint Documents in favour of the Consortium, and shall be operative till full repayment of covered charge amount, with interest and other charges, if any. Others The charge relates to addition / modification in various facilities to the extent of Rs. 350.000 granted by Bank of India, based on standalone documents pending execution of Joint Documents in favour of the Consortium secured by various movable properties are now further secured by immovable properties as mentioned in Mortgage Deed Dated 19.12. 2012
Particulars of the present modification	Total Financial Facility of Rs. 350.000 millions already granted by the Bank and Regd. with ROC, Gujarat, now secured by immovable properties Secured by Mortgage Deed, dated 19.12.2012

FIXED ASSETS:

• Land
• Building
• Plant and Machinery
• Office Equipments
• Computer Equipments
• Furniture and Fixtures
• Vehicles

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 records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.10
UK Pound	1	Rs.82.47
Euro	1	Rs.70.49

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		37

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.