MIRA INFORM REPORT

Report Date :

22.05.2013

IDENTIFICATION DETAILS

Name :	TATA ADVANCED SYSTEMS LIMITED (w.e.f.18.02.2008)
Formerly Known As :	TARA SYSTEMS AND TECHNOLOGIES LIMITED
Registered Office :	Plot No. 21, 22 and 23, Pragathi Industrial Area, Kushaiguda, ECIL Post, Hyderabad – 500062, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	19.09.2006
Com. Reg. No.:	01-077939
Capital Investment / Paid-up Capital :	Rs. 4153.152 Millions
CIN No.: [Company Identification No.]	U72900AP2006PLC077939
TAN No.: [Tax Deduction & Collection Account No.]	MUMT13406B
PAN No.: [Permanent Account No.]	AACCT5245K
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Providing solutions for Defence, Homeland Security and Disaster Management through Technology Development, Transfer and Research.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 16610000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a part of “Tata Group”. It is a well established company having a satisfactory track record. There appear huge accumulated losses. However, the company gets a strong financial and managerial support from its holding company. Trade relations are fair. Business is active. Payment terms are usually correct. The company can be considered 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.

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 DECLINED

MANAGEMENT NON-COOPERATIVE [91-22-66658282]

LOCATIONS

Registered Office :	Plot No. 21, 22 and 23, Pragathi Industrial Area, Kushaiguda, ECIL Post, Hyderabad – 500062, Andhra Pradesh, India
Tel. No.:	91-40-27131751
Fax No.:	91-40-27131754
E-Mail :	srven@tataadvancedsystems.com
Website :	www.tataadvancedsystems.com
Head Office :	Bombay House, 24, Homi Mody Street, Fort, Mumbai - 400001, Maharashtra, India
Tel. No.:	91-40-66447400/ 66658282
Corporate Office:	Thapar House, Eastern Wing, Third Floor, 124 Janpath, New Delhi – 110001, India
Tel. No.:	91-11-66222666
Fax No.:	91-11-23241585
Email :	marketing@tataadvancedsystems.com hr@tataadvancedsystems.com
Plant :	Precision Engineering Industries, Plot No.1/A in Sy No. 656, Aditya Nagar C/o APIIC, SEZ for Aerospace and Adibatla Village, Ibrahimpathnam Mandal, District Ranga Reddy – 501510, Andhra Pradesh, India

DIRECTORS

AS ON 04.09.2012

Name :	Mr. Ramadorai Subramanian
Designation :	Director
Address :	Flat No. 1, First Floor, Wyoming, Little Gibbs Road, Malabar Hill, Mumbai - 400006, Maharashtra, India
Date of Birth/Age :	06.10.1944
Qualification :	Bachelors degree in Physics from Delhi University, a Bachelor of Engineering Degree in Electronics and Telecommunications from the Indian Institute of Science, Bangalore and a Masters Degree in Computer Science from the University of California-UCLA (USA) in 1983, Ramadorai attended the school Sloan School of Management’s highly acclaimed Senior Executive Development Program.
Date of Appointment :	29.07.2009
DIN No.:	00000002
Name :	Mr. Prakash Manjanath Telang
Designation :	Director
Address :	313, 13th Floor, Samudra Mahal, DRAB Road, Worli, Mumbai - 400018, Maharashtra, India
Date of Birth/Age :	21.06.1947
Qualification :	Mechanical Engineer, did his MBA from IIM Ahmedabad and joined the Tata Group in 1972 through the prestigious Tata Administrative Service (TAS) cadre
Date of Appointment :	29.07.2009
DIN No.:	00012562
Name :	Mr. Sukaran Singh
Designation :	Director
Address :	Flat No. 4B, Sett Minar Building, Pedder Road, Opposite Jaslok Hospital, Mumbai - 400026, Maharashtra, India
Date of Birth/Age :	14.05.1969
Qualification :	MBA in Finance and Marketing and MA Economics from University of Oxford in the UK, and his BA Economics
Date of Appointment :	28.09.2006
DIN No.:	01485745

KEY EXECUTIVES

Name :	S R Venkatesan
Designation :	Secretary
Address :	Plot No.38, Out Colony, Sainkpuri, Hyderabad – 500094, Andhra Pradesh, India
Date of Birth/Age :	20.08.1957
Date of Appointment :	07.10.2010
PAN No.:	AMOPS6911J

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 04.09.2012

Names of Shareholders	No. of Shares
TATA Sons Limited	415315194
TATA Sons Limited Jointly with K R Bhagat	1
TATA Sons Limited Jointly with Sukaran Singh	1
TATA Sons Limited Jointly with Masood Hussainy	1
TATA Sons Limited Jointly with E N Kapadia	1
TATA Sons Limited Jointly with A V S Prasad	1
TATA Sons Limited Jointly with Praveen Kumar Chikkala	1
Total	415315200

AS ON 04.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Providing solutions for Defence, Homeland Security and Disaster Management through Technology Development, Transfer and Research.

Products :

ITC Code	Product Descriptions
88022000	Aeroplanes and other Aircraft, of an Unlade Weight Not Exceeding 2000 Kg

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

State Bank of India, M-47, Commercial Branch, Connaught Circus, New Delhi - 110001, India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Loans repayable son demand	142.307	0.000
Total	142.307	0.000

Banking Relations :	--
Auditors :
Name :	M.A. Parikh and Company Chartered Accountants
Address :	Yusuf Building, 2^nd Floor, 43, Mahatma Gandhi Road, Fort, Mumbai – 400001, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAAFM1433H
Associates :	Ø Tata Communications Limited [L64200MH1986PLC039266] Ø Tata Chemicals Limited [L24239MH1939PLC002893] Ø The Indian Hotels Company Limited [L74999MH1902PLC000183]
Holding company :	Ø Tata Sons Limited [U99999MH1917PLC000478]
Fellow Subsidiary company :	Ø Tata Teleservices Limited [U74899DL1995PLC066685] Ø Tata AIG General Insurance Company Limited [U85110MH2000PLC128425] Ø Tata Consultancy Services Limited [L22210MH1995PLC084781] Ø Tata Consulting Engineers Limited [U74210MH1999PLC123010] Ø Tata Industries Limited [U44003MH1945PLC004403] Ø Tata Business Support Services Limited [U64200AP1995PLC044060] Ø Tata Advanced Materials Limited [U85110KA1989PLC013224]
Subsidiaries :	Ø Nova Integrated Systems Limited [U74990MH2008PLC183426] Ø Tara Aerospace Systems Limited [U74990AP2008PLC077969] Ø TASL Aerostructures Private Limited [U29119MH2008PTC187825] Ø AVANA Integrated Systems Limited [U72900MH2008PLC188713] Ø HELA Systems Private Limited [U31909AP2004PTC042753] (formerly HBL ELTA Avionics Systems Private Limited (w.e.f.03.11.2010) [U31909AP2004PTC042753] Ø Tata Lockheed Martin Aerostructures Limited [U29268AP2010PLC077940]

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
700,000,000	Equity Shares	Rs. 10/- each	Rs. 7000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
415,315,200	Equity Shares	Rs. 10/- each	Rs. 4153.152 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		4153.152	3286.052	840.213
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(879.459)	(639.919)	(305.792)
NETWORTH		3273.693	2646.133	534.421
LOAN FUNDS
1] Secured Loans		142.307	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		142.307	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		3416.000	2646.133	534.421
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		478.371	478.541	43.780
Capital work-in-progress		25.839	48.767	224.375
INVESTMENT		2134.097	1915.891	10.468
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	209.148	149.588	61.218
	Sundry Debtors	124.166	1.743	14.378
	Cash & Bank Balances	60.892	4.658	61.261
	Other Current Assets	409.445	27.600	1.626
	Loans & Advances	100.654	160.251	231.637
Total Current Assets		904.305	343.840	370.120
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	88.111	76.452	101.052
	Other Current Liabilities	22.153	56.581	9.912
	Provisions	16.348	7.873	3.358
Total Current Liabilities		126.612	140.906	114.322
Net Current Assets		777.693	202.934	255.798
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3416.000	2646.133	534.421

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	245.814	15.588	16.870
		Other Income	25.604	0.402	0.677
		TOTAL (A)	271.418	15.990	17.547
Less	EXPENSES
		Cost of materials consumed	37.784	44.368
		Purchases of stock-in-trade	30.092	9.144
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(102.444)	(39.966)
		Employee benefit expense	232.198	131.138
		Other expenses	220.794	163.814
		TOTAL (B)	418.424	308.498	184.936
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(147.006)	(292.508)	(Including Financial Expenses)
Less	FINANCIAL EXPENSES (D)		9.566	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(156.572)	(292.508)	(167.389)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		82.968	41.619	7.151
	PROFIT BEFORE TAX (E-F) (G)		(239.540)	(334.127)	(174.540)
Less	TAX (H)		0.000	0.000	0.000
	PROFIT AFTER TAX (G-H) (I)		(239.540)	(334.127)	(174.540)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(639.919)	(305.792)	(131.252)
	BALANCE CARRIED TO THE B/S		(879.459)	(639.919)	(305.792)
	EARNINGS IN FOREIGN CURRENCY
		Export of goods calculated on FOB basis	92.551	0.000	0.000
		Training fees	44.546	0.000	0.000
	TOTAL EARNINGS		137.097	0.000	0.000
	IMPORTS
		Raw Materials	46.875	78.888	4.888
		Capital Goods	16.361	29.097	8.954
		Finished Goods	0.000	0.000	4.515
	TOTAL IMPORTS		63.236	107.985	18.357
	Earnings Per Share (Rs.)		(4.21)	(3.09)	(6.87)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(88.26)	(2089.60)	(994.70)
Net Profit Margin (PBT/Sales)	(%)	(97.45)	(2143.49)	(1034.62)
Return on Total Assets (PBT/Total Assets}	(%)	(17.32)	(40.63)	(41.17)
Return on Investment (ROI) (PBT/Networth)		(0.07)	(0.13)	(0.33)
Debt Equity Ratio (Total Debt/Networth)		0.04	0.00	0.00
Current Ratio (Current Asset/Current Liability)		7.14	2.44	3.24

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
Trade Payables	88.111	76.452	101.052

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	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	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

CORPORATE INFORMATION

Tata Advanced Systems Limited was incorporated as a Company under the Indian Company Act 1956 in the year 2006. The company’s main object is to engage in and conduct business of scientific, technical and other research and development, manufacturing, testing and

(i) In assembly of helicopter cabin at Aerospace and Precision Engineering Special Economic Zone at Adibatla, Hyderabad and supply thereof to Sikorsky

(ii) In sale of defence equipment and systems.

In pursuance of its business objective the Company has entered into joint ventures (JVs) with

(i) Sikorsky Aircraft Corporation, for manufacture and assembly of cabin components, parts and derivatives thereto, for delivery in the form of ship sets;

(ii) Lockheed Martin Aeroframe Corporation-for manufacture and assembly of Aircraft Structural articles;

(iii) AG Technologies Holding Limited-for Homeland Security solutions and

(iv) Elta Systems Limited- a subsidiary of Israel Aerospace Industries Limited for assembly, manufacturing and supply of components used in products for The Company remains invested in these JVs as a part of its business objective.

OPERATIONS

During the year, the Company incurred a net loss of Rs.239.500 Millions against previous year’s loss of Rs. 334.100 Millions consolidated, the net loss is recorded at Rs. 714.500 Millions for the year as against a loss of Rs. 431.700 Millions recorded in the previous year. Among aerospace and aero structure initiatives, S 92 was the only unit in operation; have done 8 installs for helicopter cabins and 3 cabin assemblies which is more remunerative, whereas, others such as Tara, TLMAL, where major investments have been put in, were in project state during the year. These two companies are slated to begin operations in the current year i.e. 2012-13.

Capability Build Up – D and S Vertical

In line with the stated policy of the government to promote indigenization, all the major forth coming projects are likely to be categorized as “MAKE”. Therefore having capability in Integration and Interoperability, Ruggedization, Synchronization, Encryption and manufacturing of critical technologies will help in gaining eligibility for participation in Defence Programs including offsets. Besides realizing these capabilities through the Technology Centre, the company plans to make investments in setting up production facilities commencing FY 12 -13 for Radios, Night Vision Devices, Mini UAVs and Maritime Simulation and Automation Systems post tie up with suitable technology partners. The company will seek board approvals for making such investments.

The Technology Centre comprising of Integration and Interoperability Lab, Radio Frequency Lab and Maritime Command and Control and Simulation Lab is now fully operational. Nearly 30 engineers from various domains viz, electronics and communication, computer sciences, mechanical etc have been deployed in the Technology Center and are working on integration and interoperability, development of interfaces between disparate technologies, encryption and embedded systems, configuration of communication networks including synchronization and NMS functionalities etc. The RF Center has designed and fabricated a Mobile Communication Terminal based on different tactical radios, ruggedized multiplexer switch and interoperability gateway. The Maritime Centre has undertaken indigenous development of Integrated Bridge System and Integrated Platform Management System which once fully developed will enable the company to offer the products in forth coming business opportunities. In addition the Maritime Centre is also working in the field of 3D Virtual Reality. The MCT and the maritime products along with the mini UAVs were displayed during the DEFEXPO 2012 held from 29 Mar to 1 Apr 2012 and potential customers evinced keen interest in these. In addition the MCT was also show cased to DRDO at Hyderabad as a capability demonstrator in support of an ongoing project and future business opportunities.

The company has also signed a MoU with ITT Exelis for the manufacture of 3^rd Generation Night Vision Devices to address Indian markets. A similar MoU is likely to be executed with Harris RF Division for the assembly and manufacture of Tactical Radios in the near future.

With a view to develop product portfolio, the Company has also produced a family of Mini Unmanned Aerial Vehicles (UAVs) which have been demonstrated to Defence And Para-Military Forces and state police organizations during the year. Based on the feedback received from the potential customers, there is a need to carry out further refinements in the UAVs in order to comply with the operational QR likely to be stipulated in the forth coming business opportunities. To undertake the needed product refinement the company is currently exploring tie up with an appropriate technology partner.

BUSINESS AND OUTLOOK

TASL D&S Business Vertical responded to RFPs worth INR 290.000 Millions (Approx) during the FY 11-12, main customers being Eastern Air Command, Northern, Eastern and South Western Commands of Army, Indian Navy and DRDO Labs. Projects were in the domain of Information and Communication Technology, Maritime Simulation, Night Vision Devices and Mini UAVs. Out of these, RFPs worth INR 190.000 Millions have been carried forward to FY 12-13 on account of inability of the Defence Customers to initiate technical/commercial evaluation process. Besides, RFPs for few major programs were withdrawn by the customers for various reasons as a result of which D&S Vertical has been able to book orders worth INR 48.400 Millions and has realized revenue of INR 38.800 Millions in the Fiscal. The work undertaken at Technology Centre has helped the company in formulating appropriate techno commercial solutions in winning and executing these projects. The company would be targeting revenue of INR 160.000 Millions in the FY 12 -13

S 92 ACTIVITIES

First S92 cabin assembled by TASL was delivered to Sikorsky and has been converted into a flying helicopter. No major quality issue was reported during assembly at customer’s plant. The first installs cabin is also assembled into a machine without any major issue and sold by Sikorsky. Upward increase in sale of S92 Helicopter has been reported and this provides excellent opportunity for increased production for TASL.

Production is progressing as per plan and following significant achievements were accomplished:

Ø Delivery of cabin assembly and installs work as per plan

Ø All the cabin assembly jigs and tools have been certified to blue print requirements and repeatability is achieved.

Ø Manpower recruitment has progressed as planned and a structured training program has been implemented.

Ø Financial Targets are in accordance with the approved budget and Annual Operating plan.

Ø All procurement parts have been sourced and cost reduction is achieved

Ø SAP is configured and implemented successfully

Ø QMS certification AS9100 Rev C, EHS certification IS14001 and OSHAS 18001 is achieved.

SUBSIDIARY COMPANIES

1. NOVA INTEGRATED SYSTEMS LIMITED

The company achieved a unique distinction of being the only private sector Indian company to win an export order for Rs 64.000 Millions for Integrating the MIL STD Electro- optics payloads. Company has successfully exported units worth Rs 56.400 Millions. The Company successfully won the proto order for CMS System worth Rs 289.000 Millions with future business potential of Rs 1360.000 Millions As a strategic plan, a Facility Requirement document (FRD) was evaluated for establishing the Green Field projects for Integration of UAS, Radar and Missiles.

In UAS business vertical, support operations have also doubled from the previous year with increased scope of work.

The Company has successful responded to the Surface surveillance Radar program and awaiting for the RFQ. The Combo pole with Radar is on the threshold of winning the order from the HLS customer.

2. HELA SYSTEMS PRIVATE LIMITED

Hela Systems Private Limited is a joint venture of TASL and IAI-ELTA Systems Limited, Israel with a participation in the equity of 74:26 respectively.

The Company has earned an income of Rs 683.299 Millions as compared to the previous year of Rs 408.875 Millions registering an increase of 67% over the year and has earned a profit after tax of Rs. 57.291 Millions as compared to the previous year profit after tax of Rs. 37.107 Millions,

The company is in the final stages of negotiation and closure of a major contract with IAI-ELTA Systems Limited, Israel.

The name of the company has been changed from HBL Elta Systems Private Limited to Hela Systems Private Limited effective 22 .02 2012.

3. AVANA INTEGRATED SYSTEMS LIMITED

Avana as a joint venture of TASL and AGT Holdings Limited, and has effectively progressed in its core competence of Advanced Technology based Integrated Security Solutions for securing its clients valuable strategic, commercial and private assets. The company is not only making valuable contribution to its joint venture partners group global projects by providing experienced technical skilled resources, but also contributing to support supply chain management activities by exporting critical raw material to AGT and its group. Avana has been able to book Revenue of Rs. 900.000 Millions (approx.) for the financial year 2011-12.

Future business potential lies in providing these solutions for protection of Public / Private Assets, including Tata group companies. These solutions will provide security for various assets such as Safe Cities, Mass Transit, prominent public establishments, large manufacturing / commercial units and assets of Defence, Aviation, Railways and Nuclear establishments. As these will be long gestation period opportunities, continuous focussed effort in these segments with required perseverance and support from the organisation shall help us shape their future.

4. TARA AEROSPACE SYSTEMS LIMITED

During the year, the Company had acquired 10 acres of land and commenced the construction of the facilities for setting up the project and is expected to be completed by July 2012.

Consequent to the receipt of the EOU permission, Sikorsky exported the equipments under equipment loan agreement as was agreed by the JV partners. Most of the equipments have since been installed except a few of them which are awaiting acceptance by the technical team. The machine and sheet metal shop has become operational since March 2012.

The assumptions of the IRR as per the business case could not materialize as was envisaged in the original plan due to shortfall in equipment capacity and capability to fabricate parts in house at Tara. This had resulted in demand for funding additional equipment out of the existing $ 22 Mn budget and created budgetary constraints. In order to mitigate these constraints, a Memorandum of Agreement was signed between the Company and Sikorsky and both the parties have agreed that the shortfall would be partially funded by Sikorsky and the Company through external borrowings.

Sikorsky have also agreed to identify new areas of activities to be carried out by the Company to maintain the desired level of Internal Rate of Return as was proposed in the original business plan.

The Company proposes to produce cabin kits as per the business case during the ensuing financial year 2012-13.

5. TATA LOCKHEED MARTIN AEROSTRUCTURES LIMITED (TLMAL)

Tata Lockheed Martin Aerostructure Limited (TLMAL) facility has been built on a land allotted by APIIC, having an area of 50,345 Square meters. The facility has a total built up area of 20,000 square meters with a total manufacturing hangar area of 18,000 square meters. The construction work started in February 2011 after the joint venture was formally signed and the facility was handed over in phases starting January 2012 with complete handover including a fully functional administrative building which has become operation by March 2012. TLMAL has received No-Objection Certificates from the Gram Panchayat and Airport Authority. Approvals from the Ground Water department have been obtained. Consent for Establishment has been given by the Pollution Control Board. The Factory license has been received as well. The consent for Operations and export license are awaiting approval.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U72900AP2006PLC077939
Name of the company	TATA ADVANCED SYSTEMS LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 21, 22 and 23, Pragathi Industrial Area, Kushaiguda, ECIL Post, Hyderabad – 500062, Andhra Pradesh, India Email: srven@tataadvancedsystems.com
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	State Bank of India, M-47, Commercial Branch, Connaught Circus, New Delhi - 110001, India Email: mehtasanjay@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Agreement of Hypothecation of Goods and Assets Letter regarding the grant of Individual Limits within the overall Limit.
Date of instrument Creating the charge	28.08.2012
Amount secured by the charge	Rs. 150.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 0.75% above Base Rate i.e. present effective rate is 10.75% Terms of Repayment Repayment in Eight Quarterly instalments on the dates. (Letter Regarding the grant of Individual Limits within the overall limit. Margin NA Extent and Operation of the charge The charge operates as a security for the repayment credit facility availed by the Company together with the payment of interest and any charges, costs and expenses payable to or incurred by the bank
Short particulars of the property charged	All present and future movable fixed assets of the Company and the present machinery belonging to or in the possession or under the control of the Company wherever lying stored and kept and whether in possession of the Company or of bank or of any third party whether in India or elsewhere throughout the world (including all such goods, other movable assets as may be in course of shipment transit or delivery). All the Machinery of the Borrower hypothecated and charged to the Bank shall be treated as movable property and not as an immovable property.

CONTINGENT LIABILITIES:

Particulars	31.03.2012	31.03.2011
	(Rs. in Millions)
(a) Claim for refund of service tax	1.866	0.000
(b) Corporate Guarantee for borrowings made by a subsidiary company	11.500	34.700
(c) Claims made against the company not acknowledged as debt	1.093	2.638

FIXED ASSETS:

Ø Land

Ø Buildings

Ø Office building

Ø Plant and equipment

Ø Factory equipments

Ø Furniture and fixtures

Ø Vehicles

Ø Motor vehicles

Ø Office equipment

Ø Computer equipments

Ø Other equipments

Ø Leasehold improvements

Ø Computer software

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 55.04
UK Pound	1	Rs. 83.95
Euro	1	Rs. 70.93

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	6
--RESERVES	1~10	4
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.