MIRA INFORM REPORT

Report Date :

30.03.2013

IDENTIFICATION DETAILS

Name :	TRIVENI TURBINE LIMITED
Registered Office :	A-44, Hosiery Complex, Phase II Extension, Noida – 201305, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	27.06.1995
Com. Reg. No.:	20-041834
Capital Investment / Paid-up Capital :	Rs.357.880 Millions
CIN No.: [Company Identification No.]	L29110UP1995PLC041834
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Steam Turbine.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 2740000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track record. The company is progressing well. It has been successful in wipping-off the accumulated losses of the previous year. Financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to regular and as per commitment. The company can be considered good for normal for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – June 30, 2012

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

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

INDIAN ECONOMIC OVERVIEW

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

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	A1+ (Non Fund Based Limit)
Rating Explanation	Highest credit quality it carry low credit risk.
Date	April 2, 2012

Rating Agency Name	ICRA
Rating	A+ (Fund Based Limit)
Rating Explanation	Adequate degree of safety it carry low credit risk.
Date	April 2, 2012

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

LOCATIONS

Registered Office :	A-44, Hosiery Complex, Phase II Extension, Noida – 201305, Uttar Pradesh, India
Tel. No.:	91-120-4748000
Fax No.:	91-120-4243049
E-Mail :	shares.ttl@trivenigroup.com mktg@triveniturbines.com
Website :	http://www.triveniturbines.com
Head Office/ Factory :	12-A, Peenya Industrial Area, Bengaluru - 560058, Karnataka, India
Tel. No.:	91-80-22164000/ 28394721
Fax No.:	91-80-28395945/ 22164100
Corporate Office :	‘Express Trade Towers’, 8th Floor, 15-16, Sector- 16A, Noida - 201301, Uttar Pradesh, India
Tel. No.:	91-120-4308000
Fax No.:	91-120-4311010-11
Sales Unit :	Located at: Noida Mumbai Pune Kolkata
Service Unit :	Located at: Ahmedabad Nagpur Allahabad Noida Hyderabad Pune Kolhapur Raipur Kolkata Vijayawada Latur

DIRECTORS

As on: 31.03.2012

Name :	Mr. Dhruv M. Sawhney
Designation :	Joint Managing Director
DIN No.:	00102999
Name :	Mr. Nikhil Sawhney
Designation :	Director
DIN No.:	00029028
Name :	Mr. Tarun Sawhney
Designation :	Director
DIN No.:	00382878
Name :	Lt. Gen. K.K. Hazari (Retd.)
Designation :	Director
DIN No.:	00090909
Name :	Mr. K.N. Shenoy
Designation :	Director
DIN No.:	00021373
Name :	Mr. Amal Ganguli
Designation :	Director
DIN No.:	00013808

KEY EXECUTIVES

Name :	Mr. Rajiv Sawhney
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.12.2012

Category of Shareholder	No. of Shares	Percentage of Holding
(1) Indian
Individuals / Hindu Undivided Family	87992116	26.67
Bodies Corporate	159330417	48.30
Sub Total	247322533	74.97
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	247322533	74.97
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	28625125	8.68
Foreign Institutional Investors	35402086	10.73
Sub Total	64027211	19.41
(2) Non-Institutions
Bodies Corporate	3823018	1.16
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	10918929	3.31
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1785726	0.54
Any Others (Specify)	2002733	0.61
Non Resident Indians	1417331	0.43
Hindu Undivided Families	357779	0.11
Clearing Members	218623	0.07
Trusts	9000	0.00
Sub Total	18530406	5.62
Total Public shareholding (B)	82557617	25.03
Total (A)+(B)	329880150	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	329880150	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Steam Turbine.

Products :

Product Description	ITC Code
Steam Turbine	8406

PRODUCTION STATUS (As on: 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Steam Turbines	Nos.	NA	150	53

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Axis Bank Limited
• Citi Bank N.A
• Yes Bank Limited
• IDBI Bank
• Punjab National Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Term loans from banks	162.970	349.630
Vehicle loans	4.060	0.000
Cash credits from banks	4.480	35.200
Total	171.510	384.830

Note:

Cash credit from banks is secured by pledge/hypothecation of the stock-in-trade, raw material, stores and spare parts, work-in -progress and receivables and a second charge on the fixed assets on pari-passu basis.

Banking Relations :	--
Auditors :
Name :	J. C. Bhalla and Company Chartered Accountants
Branch Auditors :
Name :	Virmani and Associates Chartered Accountants
Company in which Key Management Personnel or their relatives have substantial interest/ significant influence :	Kameni Upaskar Limited
Investing company holding substantial interest :	Triveni Engineering and Industries Limited
Subsidiary Company :	GE Triveni Limited

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
450000000	Equity Shares	Rs.1/- each	Rs.450.000 Millions
5000000	8% Cumulative Redeemable Preference Shares	Rs.10/- each	Rs. 50.000 Millions
	Total		Rs.500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
329880150	Equity Shares	Rs.1/- each	Rs.329.880 Millions
2800000	8% Cumulative Redeemable Preference Shares	Rs.10/- each	Rs.28.000 Millions
	Total		Rs.357.880 Millions

a) Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

Equity Shares	As at 31.03.2012
Particulars	No of Shares	Rs. In Millions
At the beginning of the period	72000000	72.000
Add : Shares allotted to shareholders of Triveni Engineering and Industries Limited in the ratio 1:1 in accordance with the Scheme of Arrangement.	257880150	257.880
Outstanding at the end of the period	329880150	329.88

Preference Shares	As at 31.03.2012
Particulars	No of Shares	Rs. In Millions
At the beginning of the period	--	--
Add: Shares issued from Preference Share Capital Suspense A/c	2800000	28.000
Outstanding at the end of the period	2800000	28.000

b) Terms/rights attached to equity shares

The Company has only one class of equity shares with a par value of Rs.1/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares are entitled to receive the remaining assets of the Company, after meeting all liabilities and distribution of all preferential amounts, in proportion to their shareholding.

c) Terms/rights attached to preference shares

As per the Scheme of Arrangement (“Scheme”) duly approved by Allahabad High Court vide order dated April 19, 2011, 28000000 equity shares of Rs. 1/- each fully paid up by Triveni Engineering and Industries Limited stood converted into 2800000 - 8% Cumulative Reedemable Preference Shares of Rs.10/- each fully paid up. These Preference Shares carry cumulative dividend @8% p.a. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Preference shares are redeemable at par at the end of 5 years from the date of allotment. However, the Company has an option to redeem these shares at any time after the end of 6 months from the date of allotment. The preference shareholders have a preference vis-à-vis equity shareholders with respect to any dividend that may be declared by the Company as well as with regard to redemption of capital in the event of liquidation.

d) Shares allotted as fully paid up pursuant to contract(s) without payment being received in cash (during 5 years immediately preceding)

257880150 equity shares of Rs.1/- each were allotted on May 10, 2011, as fully paid up to the shareholders of Triveni Engineering and Industries Limited (TEIL) in the ratio of one equity share for every one equity share held by them in TEIL, pursuant to the Scheme.

e) Details of shareholders holding more than 5% shares in the company

	As at 31.03.2012
Particulars	No of Shares	% holding
Equity Shares of Rs.1/- each fully paid
Triveni Engineering and Industries Limited	72000000	21.83
Dhruv M. Sawhney	36124645	10.95
Nalanda India Fund Limited	25788000	7.82
Umananda Trade and Finance Limited	20157589	6.11
Rati Sawhney	18824914	5.71
Tarnik Investments and Trading Limited	18680527	5.66
8% Cumulative Redeemable Preference Shares of Rs. 10/- each fully paid
Triveni Engineering and Industries Limited	2800000	100

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		357.880	357.880	100.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		328.460	0.000	0.000
4] (Accumulated Losses)		0.000	(330.530)	(257.870)
NETWORTH		686.340	27.350	(157.870)
LOAN FUNDS
1] Secured Loans		171.510	384.830	0.150
2] Unsecured Loans		0.000	202.550	175.240
TOTAL BORROWING		171.510	587.380	175.390
DEFERRED TAX LIABILITIES		70.880	58.190	0.000
TOTAL		928.730	672.920	17.520
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1236.300	1208.020	4.610
Capital work-in-progress		1.130	1.650	0.000
INVESTMENT		155.010	10.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	6.080
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	791.070	959.620	1.000
	Sundry Debtors	646.170	1064.710	1.470
	Cash & Bank Balances	118.060	10.440	2.540
	Other Current Assets	7.470	4.980	0.000
	Loans & Advances	228.640	190.240	4.060
Total Current Assets		1791.410	2229.990	9.070
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	720.720	907.140	2.240
	Other Current Liabilities	1079.550	1548.230	0.000
	Provisions	454.850	321.370	0.000
Total Current Liabilities		2255.120	2776.740	2.240
Net Current Assets		(463.710)	(546.750)	6.830
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		928.730	672.920	17.520

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	6318.820	3050.460	60.310
		Other Income	46.860	26.340	7.110
		TOTAL (A)	6365.680	3076.800	67.420
Less	EXPENSES
		Cost of raw material and components consumed	3717.330	2000.110
		(Increase)/decrease in inventories of finished goods and work-in-progress	110.260	(117.080)
		Employee benefit expenses	460.990	195.360
		Other expenses	516.120	280.030
		Extraordinary items	0.000	559.820
		TOTAL (B)	4804.700	2918.240	145.270
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1560.980	158.560	(77.850)
Less	FINANCIAL EXPENSES (D)		95.930	47.130	0.050
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1465.050	111.430	(77.900)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		115.930	58.770	2.870
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		1349.120	52.660	(80.770)
Less	TAX (H)		438.310	125.320	(4.880)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		910.810	(72.660)	(75.890)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(330.530)	(257.870)	(181.980)
Less	APPROPRIATIONS
		Transfer to General Reserve	150.000	0.000	0.000
		Equity dividend	249.220	0.000	0.000
		Preference dividend	2.600	0.000	0.000
	BALANCE CARRIED TO THE B/S		178.450	(330.530)	(257.870)
	EARNINGS IN FOREIGN CURRENCY
		Exports of goods on F.O.B. basis	799.670	332.470	0.000
		Service charges	33.440	16.060	0.000
		Selling commission	2.180	3.130	0.000
	TOTAL EARNINGS		835.290	351.660	0.000
	IMPORTS
		Raw Materials	212.170	126.470	0.000
		Stores & Spares	3.670	3.610	0.000
		Capital Goods	90.420	33.50	0.000
	TOTAL IMPORTS		306.260	163.580	0.000
	Earnings Per Share (Rs.)		2.75	(0.34)	(0.76)

QUARTERLY RESULTS

PARTICULARS	30.06.2012 1^st Quarter	30.09.2012 2^nd Quarter	31.12.2012 3^rd Quarter
Net Sales	1114.400	1797.100	1751.200
Total Expenditure	830.900	1352.600	1273.000
PBIDT (Excl OI)	283.500	444.500	478.200
Other Income	17.700	9.800	11.600
Operating Profit	301.200	454.300	489.800
Interest	13.100	8.400	5.000
Exceptional Items	0.000	0.000	0.000
PBDT	288.100	445.900	484.800
Depreciation	30.300	30.700	30.900
Profit Before Tax	257.800	415.200	453.900
Tax	83.700	134.100	148.700
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	174.100	281.100	305.200
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	174.100	281.100	305.200

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	14.31	(2.36)	(112.56)
Net Profit Margin (PBT/Sales)	(%)	21.35	1.73	133.92
Return on Total Assets (PBT/Total Assets}	(%)	44.56	1.53	(590.42)
Return on Investment (ROI) (PBT/Networth)		1.97	1.93	0.51
Debt Equity Ratio (Total Debt/Networth)		0.25	21.48	(1.11)
Current Ratio (Current Asset/Current Liability)		0.79	0.80	4.05

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	No
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	No
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

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
Loan from Triveni Engineering and Industries Limited	0.000	112.560
Buyer’s credit	0.000	89.990
Total	0.000	202.550

MANAGEMENT DISCUSSION AND ANALYSIS

ECONOMY

Domestic Scenario

In financial year 2011-12, India found itself in a conflict of managing growth and inflation due to major challenges in the macro economy. The Indian economy has grown by 6.5% in the year 2011-12, after having grown at rate of 8.5% in the preceding year. The Industrial growth has slowed down due to rising interest rates, tight liquidity, inability to raise equity due to uncertain capital market, slowing down of foreign investments and above all, the lack of policy actions and reforms by the Government. This has adversely impacted the confidence of the industry and slowed investments, mainly in infrastructure and capital goods sectors.

Global Scenario

The global economic recovery is slowing and the global environment continues to be a cause for concern and caution. The global economic environment, which has been tenuous throughout the year, turned sharply adverse in September 2011 owing to turmoil in the Eurozone, and questions about the outlook of the U.S. economy.

POWER SECTOR

Currently, India has the fifth largest electrical system in the world; with installed electricity capacity of around 180 GW, of which 22 GW, i.e., 12.2 % is from Renewable Energy sources. The captive generating capacity connected to grid is about 19.5 GW. There is a huge gap between demand and supply with the all-India peak demand deficit of ~12%.

As per industry estimates the current and approved electricity capacity addition projects in India are expected to add about 80 GW of installed capacity in the 12th five year plan beginning April 2012 with planned investment requirement of approx.

$ 322 billion. This growth makes India one of the fastest growing markets for electricity infrastructure equipment.

However, uncertainties in regulatory environment over coal linkages, land acquisition, environmental clearance etc., have majorly impacted the new investments and may also further delay the execution of projects which are underway. Under these circumstances, for meeting the industrial power demand, distributed power generation and captive power plants continue to play a crucial role.

RENEWABLE ENERGY

Since 2005, the energy and climate change agenda has taken centre stage in domestic and international policy. In addition, the renewable energy generation capacity has nearly tripled in the last five years. India’s vast untapped renewable energy sources can pave the way for a secure, more affordable and environmentally sustainable energy future for the country.

Assuming that the electricity power generation from renewable sources like wind and solar power is going to be substantial; it would be essential to add renewable power generation capacities through Municipal Solid Waste, Biomass and Waste heat recovery as they have good control capability with the change of power output. This will help in maintaining stable operations in the electrical system and absorb the fluctuation of reactive and active power.

Biomass

India is rich in biomass which has the potential of generating 16,881 MW from agro-residues and plantations, 5000 – 7000 MW from bagasse co-generation and approx. 2700 MW energy recovery from waste. Biomass power generation in India is an industry that attracts investments of over Rs. 6 billion every year, generating more than 5000 million units of electricity and yearly employment of more than 10 million man-days in the rural areas. The Government has launched National Action Plan on Climate Change in June 2008 to promote the use of renewable energy for power generation. Taking cue from this, Ministry of New and Renewable Energy (MNRE) has planned to initiate “National

Bioenergy Mission” in association with State governments, Public and Private sectors and other stakeholders to promote ecologically sustainable development of Bioenergy to address country’s energy security challenge. MNRE is targeting for the deployment of 20,000 MW of biomass power by 2022.

Geothermal and Concentrated Solar Energy

Geothermal and Solar Energy resources can be used for a wide range of power and heat applications. India’s installed geothermal energy capacity is currently experimental and the commercial use is insignificant. India has potential resources to harvest geothermal energy and has identified six promising geothermal regions for the development of geothermal energy.

Similarly, though more advanced than Geothermal Energy development, Concentrated Solar power generation has received a big boost by the launch of the Jawaharlal Nehru National Solar Mission under the National Action Plan on Climate Change. India is bestowed with solar irradiation ranging from 4 to 7 kWh/ square meter/day across the country, with western and southern regions having higher solar incidence. Under this initiative, India plans to generate 1 GW of power by 2013. By 2020, 20 million square meters will be covered by solar energy collectors to generate 20 GW grid based solar power and 2 GW of off –grid solar power.

Combined Heat and Power (CHP)

This refers to the simultaneous generation of useful heat and power. In combined heat and power, some or all of the waste heat released into the atmosphere is captured, transformed into useful heat by deploying it in process applications or indirectly in producing steam, hot water etc. An optimal CHP system is designed to meet the thermal demand of the energy user whether at industrial, individual building or city-wide levels. By using the heat output from the electricity production for heating or industrial applications, CHP plants generally convert 70-75% of the fuel source into useful energy.

Waste - to – Energy

The economic case for burning waste to generate energy becomes stronger as the size of waste accumulations expands and presents an environmental and management challenge. According to the estimates, the waste generated in India is over 50 million tonnes annually.

The waste-to-energy industry is expected to benefit from the emerging opportunities in regions such as India, China, Europe and the US. Asia-Pacific region is expected to surpass Western Europe and emerge as the largest market in terms of waste-to energy investments.

BUSINESS OUTLOOK

Financial year 2011-12 has been a challenging year for Triveni Turbine Limited (TTL), in terms of maintaining revenues and healthy margins due to intense competition and decline in the overall domestic market demand. In the sub 30 MW range, from an average annual demand of approx. 1700 MW during 2007-11 and as against 1425 MW in financial year 2010-11, the demand declined to about 800 MW in financial year 2011-12. Metal and Sugar Co-generation (SCG) segment recorded a major drop of over 50% while the decline in the industries in the Process Co-Generation (PCG) segment such as Food/Paper/Pharma sector was over 30%. Independent Power Producers (IPP) was the only segment which could sustain its demand in comparison to the previous year. Comparison of market demand for various segments in financial year 2010-11, financial year 2011-12 and the annual average for financial years 2007-11 is depicted below:

Even in this sluggish market environment, the Company could achieve reasonable order-intake with 54% market share. The Company has an outstanding order book, excluding the slow moving orders, of Rs.4.95 billion as on March 31, 2012. This order book is executable in financial year 2012-13.

OUTLOOK

Despite the uncertain economic scenario, worldwide power generation sector is bracing for a long term growth, driven by the presence of strong demand drivers including increasing population and improving consumer lifestyles, rapid industrialisation in emerging economies, particularly China and India. Clean energy, environmental constraints, rising cost of fuel and energy policies will play a significant role in changing the dynamics of the thermal power industry and determining technology mix.

Asia-Pacific represents the largest regional market. The region forecasts to record the fastest growth in electricity generation because of increasing efforts to enhance the electrification rates. Efforts of major markets in Latin America to diversify their fuel sources, which rely heavily on hydropower, are expected to increase preference for thermal power generation and other renewable sources of energy. The installed capacity for thermal energy in the Asia-Pacific region for 2011 is estimated at 1372.5 GW. The installed capacity is expected to grow at a CAGR of 6.8% for the period 2012 - 2020, with the total installed capacity expected to be around 1969.3 GW in 2020. In the recent years, the financial crisis lowered investor confidence and significantly raised the cost of capital. The underdeveloped and developing economies face the challenge of power evacuation in tandem with generation. Hence within the domain of Thermal Power Generation, the discrete Renewable energy based power generation will contribute significantly in remote areas through distributed and decentralised power generation.

Increasing consciousness about off setting the environmental impact of fossil fuels has prompted the European Commission to plan for collective energy policies and promote energy efficiency directives. Stable energy prices make it a right energy investment decisions, and a sound strategy to rebuild a co-generation base. Co-generation is all set for a revival in Europe between 2014 and 2018. Most countries across Europe are expected to increase their co-generation capacity, mainly in the combined cycle form. Under the combined heat and power (CHP) directive, Germany, Italy and Spain have made considerable strides in building a policy framework to support co-generation, while Germany has set itself a target to double co-generation capacity by 2020. In 2011, the EU identified co-generation as the energy application that can make the single-largest contribution to achieving the region’s greenhouse gas reductions, giving a huge thrust to the market. The effective implementation of CHP policies and a focus on creating favourable conditions for co-generation development are likely to drive the market in Europe.

Exports will be a major growth driver for the business in the coming years. Currently the Company has presence in 30 countries, with focus on South East Asia markets of Indonesia, Malaysia and Thailand, Korea, Europe. The Company will be developing new geographies like South America, Middle East and Africa in near future. Going international entails serving new market segments like Geothermal, Solar Thermal Power and a broader ambit of biomass technologies.

The Company is geared up with appropriate product and service offerings for most of the power generation technologies being deployed. The strategy has been to leverage the huge installed base of the conventional renewable energy primarily in the Sugar Bagasse power generation in India and developing new models for the specific applications dominant in focused geographies. During the last two years, the Company has focused and successfully developed the European markets for waste heat recovery and district heating segments. This will provide the requisite testimony for the Company for further business. The Company will explore deeper into the developed markets for its products and services and will explore opportunities in various new segments. The Company will have an aggressive approach in market development creating local set up to go closer to the customer and serve them better, going forward. Initiating steps to create a global sales organisation has been a key activity in financial year 2011-12.

With the government thrust being shifted to revive the growth, the investor confidence and capex cycle may pick up momentum by second half of the financial year 2012-13. As a natural hedge, the Company will focus more on the international markets and will be aggressive in the service business. The Company has significant capability for the refurbishment business considering its collective turbine engineering experience, supported by state-of-the-art High Speed Dynamic Balancing facility, R and D capability, reverse engineering tools and competence. Servicing is another growth driver for the Company. The Company will leverage its strength of huge knowledge base on steam turbines and high speed turbo-machinery acquired over a period of time to get more business on refurbishment.

Overall, the outlook on the business seems promising for financial year 2012-13 and the Company expects reasonable growth prospects by penetrating deeper in the existing markets and exploring new markets and geographies.

FINANCIAL REVIEW

Financial year 2011-12 is the first full year of turbine operations of the Company post the demerger. The summarised results for financial year 2011-12 and financial year 2010-11 are provided here. The performance results for the financial year 2011-12 are not comparable with the financial year 2010-11 as the previous year’s figures include turbine operations for six months only.

The Company’s strategy to focus on exports to achieve geographical diversification of its products has paid dividends – the exports at Rs. 880.5 million were 13.9 % of the total revenues as against 10.9 % in April - March 2011. This strategy will provide effective insulation from the slow-down of the domestic market due to macro economic factors. Likewise, the revenues from after-market operations at Rs.1058.600 millions account for 16.8 % of the total revenues as against 16.0 % in April - March 2011. Despite the challenging market conditions, the Company has been able to preserve the margins due to cost optimization and higher proportion of high-margin exports and after-market spares and service. The extraordinary charge in the previous year relates to writing-off of the goodwill recognised pursuant to the Scheme of Arrangement.

Due to profitable operations, the Company has been able to absorb accumulated losses of Rs.330.530 millions carried forward from the last year which were mainly on account of the extraordinary charge as aforesaid.

OUTLOOK

Product orders in hand of Rs. 4.95 billion as on April 1, 2012, have been enhanced with further orders of Rs. 0.68 billion in April, 2012, all of which will be executed in financial year 2012-13 without dilution in the margins. The domestic market is a matter of concern but they expect position to improve in the second half of financial year 2012-13. The growth in exports and services is expected to continue, and they expect to build up a sizeable pipeline for execution in financial year 2013-14. Their efforts in Research and Development in the last two years have shown commendable results through the introduction of new world class models in terms of efficiency, robustness, and value to the customer. They intend to intensify these efforts in the coming years which will enhance the Company’s competitiveness on a global scale. The Company is conscious of safeguarding its inventions through their R and D initiatives and during the year it has registered a substantial number of patents and copyrights in India and abroad.

Contingent Liabilities to the extent not provided for

(Rs. In Millions)

Particular	31.03.2012
Excise duty	39.680
Service tax	12.800
Others	2.080

Excise duty: The outflow arising from these claims is uncertain. Such outflow, if any, will be after adjusting reimbursement of Rs.8.060 Millions received from customers (Previous year: likely reimbursement of Rs.12.020 Millions) in respect of central excise demand on account of denial of benefit under Notification No. 6/2000 issued by the Central Government under Section 5A(1) of the Central Excise Act,1944.

TANGIBLE ASSETS

Tangible Assets

• Land
• Land Buildings
• Plant and Machinery
• Office Equipment
• Furniture and Fixtures
• Vehicles
• Computers

Intangible Assets

• Computer
• Software
• Website
• Design and Drawings
• Technical know-how

STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31.12.2012

(Rs. In Millions)

		3 Months Ended		9 Months Ended
	Particulars	31.12.2012	30.90.2012	31.12.2012
		Unaudited	Unaudited	Unaudited
1	Income from Operations
	(a) Net Sales / Income from Operations (Net of excise duty)	1730.400	1796.700	4640.500
	(b) Other Operating Income	20.800	0.400	22.200
Total Income from Operations (Net)		1751.200	1797.100	4662.700
2	Expenses
	(a) Cost of materials consumed	956.100	989.000	2638.500
	(b) Changes in inventories of finished goods, work-in-progress and stock-in-trade	72.900	64.300	16.500
	(c) Employee benefits expense	121.400	170.900	406.800
	(d) Depreciation and amortisation expense	30.900	30.700	91.900
	(e) Other expenses	122.600	128.400	389.400
Total Expenses		1303.900	1383.300	3543.100
3	Profit / (Loss) from Operations before Other Income and Finance costs (1-2)	44.700	413.800	1119.600
4.	Other Income	11.600	9.800	33.800
5	Profit / (Loss) from ordinary activities before Finance costs (3+4)	458.900	423.600	1153.400
6.	Finance Costs	5.000	8.400	26.500
7	Profit / (Loss) from ordinary activities before Tax (5-6)	453.900	415.200	1126.900
8.	Tax Expense	148.700	134.100	366.500
9.	Net Profit / (Loss) from ordinary activities after Tax (7-8)	305.200	281.100	760.400
10.	Paid up Equity Share Capital (Face Value Rs.1/-)	329.900	329.900	329.900
11.	Reserves excluding Revaluation Reserve as per balance sheet of previous accounting year
12	Earnings per share of Rs. 1/- each (not annualised]
	(a) Basic (in Rs.)	0.92	0.85	2.30
	(b) Diluted (in Rs.)	0.92	0.85	2.30

SELECT INFORMATION FOR THE QUARTER AND NINE MONTHS ENDED 31.12.2012

	3 Months Ended		9 Months Ended
Particulars	31.12.2012	30.09.2012	31.12.2012
	Unaudited	Unaudited	Unaudited
A. PARTICULARS OF SHAREHOLDING
1. Public Shareholding
-Number of Shares	82557617	82557617	82557617
-Percentage of Shareholding	25.03	25.03	25.03
2. Promoters and promoter group Shareholding
(a) Pledged / Encumbered
- Number of Shares	6825000	6825000	6825000
- Percentage of Shares (as a % of the total shareholding of
promoter and promoter group)	2.76	2.76	2.76
- Percentage of Shares (as a % of the total
share capital of the Company)	2.07	2.07	2.07
(b) Non- encumbered
- Number of Shares	240497533	240497533	240497533
- Percentage of Shares (as a % of the total
shareholding of promoter and promoter group)	97.24	97.24	97.24
- Percentage of Shares (as a % of the total share capital
of the Company)	72.90	72.90	72.90

INVESTOR COMPLAINTS:

B. Investor Complaints:	3 Months Ended
	31.12.2012
Pending at the beginning of the quarter	Nil
Disposed off during the quarter	10
Received during the quarter	10
Unresolved till end of the quarter	Nil

Notes:

1. The Company primarily operates in one business segment-Power Generating Equipment and Solutions. There are no reportable geographical segments.

2. During the quarter ended December31, 2012, the Company has made further investment of Rs.25.000 Millions in its Equity Share Capital of its subsidiary, GE Triveni Limited.

3. The figures of the previous periods under various heads have been regrouped to the extent necessary.

4. The above results were reviewed and recommended for adoption by the Audit Committee and approved by the Board of Directors of the Company at their respective meetings held on January 11, 2013. The statutory auditors have carried out a limited review of the above financial results.

AS PER WEBSITE DETAIL:

Press Release

AMULYA 2012" AWARDS A CERTIFICATE OF APPRECIATION TO TRIVENI TURBINE LIMITED FOR A PATENT APPLICATION.

Date: 2nd February 2013

“Triveni Turbine Limited” was awarded a certificate of appreciation for the Patent Application titled “A Steam Turbine Intermediate Pressure Module with Moderate Reaction” from The Karnataka State Innovation Council and Department of Industries and Commerce.

The programme titled ‘Amulya 2012’ was held in collaboration with The Government of Karnataka – State Innovation Council. Mr. Venkata Rahul A from the Intellectual Property Rights Cell and Mr. Suresh Chegunti (the inventor) from Research and Development attended the award distribution programme held on 2nd February, 2013 on behalf of Triveni Turbine Limited company and received the award from the hands of Dr. Kiran Mazumdar Shaw (CMD-Biocon) and Mr. Vidyashankar (Principal Secretary-Dept of Industries and Commerce, Govt. of Karnataka).

It was an honor for Triveni Turbine Limited, to receive this award.

CHAIRMAN AND MANAGING DIRECTOR, TRIVENI, MR. DHRUV M. SAWHNEY APPOINTED AS HONORARY LIEUTENANT – ROYAL VICTORIAN ORDER BY QUEEN ELIZABETH II

29 December 2012

Queen Elizabeth II has graciously awarded Mr. Dhruv M. Sawhney with the Honorary Lieutenant (LVO) of the Royal Victorian Order on December 29, 2012.

Mr. Sawhney was formerly Chairman of International Liaison Group of The Duke of Edinburgh’s Commonwealth Study Conferences.

The Royal Victorian Order is given by The Queen to people who have served her or the Monarchy in a personal way.

The Order was founded in April 1896 by Queen Victoria as a way of rewarding personal service to her, on her own initiative rather than by ministerial recommendation. The investiture ceremony will be held at Buckingham Palace shortly.

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] 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.54.39
UK Pound	1	Rs.82.32
Euro	1	Rs.69.54

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		54

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.