MIRA INFORM REPORT

Report Date :

10.10.2013

IDENTIFICATION DETAILS

Name :	MEENAKSHI ENERGY PRIVATE LIMITED (w.e.f 21.06.2007)

Formerly Known As :	VIKAS POWER PRIVATE LIMITED

Registered Office :	Meenakshi, Plot No 119 , Road No 10, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh

Country :	India

Financials (as on) :	31.03.2012

Date of Incorporation :	21.08.1996

Com. Reg. No.:	01.54239

Capital Investment / Paid-up Capital :	Rs. 6432.269 Millions

CIN No.: [Company Identification No.]	U40101AP1996PTC054239

TAN No.: [Tax Deduction & Collection Account No.]	HYPV05554D

PAN No.: [Permanent Account No.]	AAACV8814G

Legal Form :	Private Limited Liability Company

Line of Business :	Undertaken Thermal Power Projects [Phase I (300mv) and Phase II (700mv)]

No. of Employees :	60 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 25860000

Status :	Project under implementation stage

Payment Behaviour :	Unknown

Litigation :	Clear

Comments :	Ever thorugh the company incorporated during the year 1996. It is yet to commence its commercial operation as the company’s project is under implementation stage. The rating also takes into consideration delays in the payment of interest on the term debt caused in particular by delays to the commencement of commercial operation. However, capital base of the company is strong. 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 – March 31^st, 2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

India

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

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure. Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	FITCH RATING
Rating	Bank Loan = Ind (D)
Rating Explanation	This rating indicate an issuer has entered into bankruptcy filling, administrative, receivership, liquidation or other formal winding up

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 (PARTIAL DETAILS)

Name :	Mr. Pundari
Designation :	Finance Department
Contact No.:	91-40-67331234
Date :	10.10.2013

LOCATIONS

Registered Office :	Meenakshi, Plot No 119 , Road No 10, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh, India
Tel. No.:	91-40-67331234/23358111/222/333
Fax No.:	91-40-67331376/23351133/1530
E-Mail :	mepl@meenakshienergy.com
Website :	www.meenakshiebergy.com

DIRECTORS

As on 29.09.2012

Name :	Mr. Suresh Devinevi
Designation :	Director
Address :	8-2-401-C-1, Plot No. 20, Road No.4, Banjara Hills, Hyderabad – 500034, Andhra Pradesh, India
Date of Birth/Age :	16.09.1956
Date of Appointment :	15.04.2006

Name :	Mr. Chitturi Sivarama Prasad
Designation :	Director
Address :	303 Meenakshi Royal Court, Road No. 1, Banjara Hills, Hyderabad – 500034, Andhra Pradesh, India
Date of Birth/Age :	25.07.1964
Date of Appointment :	09.09.2005

Name :	Mr. Sriniwas B.
Designation :	Director
Address :	302 Meenakshi Park, Side Sri Nagar Colony, Hyderabad - 500034, Andhra Pradesh, India
Date of Birth/Age :	19.09.1956
Date of Appointment :	23.03.2009

Name :	Mr. Sitesh Kumar Sinha
Designation :	Director
Address :	M-7078, Devinder Vihar, Sector 56, Gurgaon – 122003, Haryana, India
Date of Birth/Age :	25.12.1974
Date of Appointment :	27.05.2012
DIN No.:	03578376

Name :	Mr. Chilumuri Santhi
Designation :	Director
Address :	B-13, 3-6-15 Staff Colony, Himayat Nagar, Hyderabad - 500029, Andhra Pradesh, India
Date of Birth/Age :	26.12.1975
Date of Appointment :	29.04.2011

Name :	Mrs. Jayadevi Polavarapu
Designation :	Director
Address :	8-3-1055, Plot No. 139, Sri Nagar Colony, Hyderabad - 500034, Andhra Pradesh, India
Date of Birth/Age :	25.06.1964
Date of Appointment :	18.08.2010
DIN No.:	00782667

Name :	Mr. Bhaskar Rao N S Palakurty
Designation :	Director
Address :	6-3-247-251-02A, A-102, Dwarakapuri Colony, Hyderabad, Andhra Pradesh, India
Date of Birth/Age :	18.08.2010
Date of Appointment :	10.06.2007
DIN No.:	03207319

Name :	Mr. P. Baburaj
Designation :	Director
Address :	12-B, First Floor, DDA Flats, Shekh Sarai Phase I, New Delhi – 110017, India
Date of Birth/Age :	17.05.1962
Date of Appointment :	12.11.2010

KEY EXECUTIVES

Name :	Mr. K. Sambasiva Rao
Designation :	Director
Address :	8-3-825-A-A, Vellareddyguda, Hyderabad – 500073, Andhra Pradesh, India
Date of Birth/Age :	15.07.1960
Date of Appointment :	30.12.2009

MAJOR SHAREHOLDERS

As on 29.09.2012

Names of Shareholders		No. of Shares
Suresh Devineni		100
Meenakshi Energy and infrastructure Holdings Private Limited, India		378799368
PTC India Financial Services limited, India		120143193
IFCI limited, India		175304182
Total		674246843

As on 06.03.2013

Names of Allottees		No. of Shares
Meenakshi Energy and infrastructure Holdings Private Limited, India		3775532
Total		3775532

As on 25.10.2012

Names of Allottees		No. of Shares
Meenakshi Energy and infrastructure Holdings Private Limited, India		10080000
PTC India Financial Services limited, India		4539147
IFCI limited, India		5136455
Total		19755602

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Undertaken Thermal Power projects [Phase I (300mv) and Phase II (700mv)]

Imports :
Products :	Raw Material and Finished Goods
Countries :	Indonesia

Terms :
Purchasing :	Depend

GENERAL INFORMATION

No. of Employees :

60 (Approximately)

Bankers :

State Bank of Mysore, Industrial Finance Branch, My Home Jupally, Ammerpet, Hyderabad – 500016, Andhra Pradesh, India
State Bank of Hyderabad, Industrial Finance Branch, Topaz Building, Amrutha Hills, Punjagutta, Hyderabad – 500082, Andhra Pradesh, India

Facilities :

SECURED LOANS	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Long Term Borrowings
Rupee Term Loan from bank	12148.998	7912.113
Rupee Term Loan from others (Terms of Repayment : Phase-II amount Rs.6802.978 Millions is repayable in 48 quarterly Installments and 1st installment is due on 30th June,2014)	3506.076	1600.000
Total	15655.074	9512.113


Banking Relations :	--

Auditors :
Name :	S V Rao Associates Chartered Accountants
Address :	8-2-293/82/A/796B, 1^st Floor Road # 36, Jubilee Hills, Hyderabad, Andhra Pradesh, India
PAN No.:	AANFS0379R

Holding Company :	Meenakshi Energy and Infrastructure Holdings Private Limited

Major Investing Party :	PTC India Financial Services Limited IFCI Limited

Associates:	Meenakshi Infrastructures Private Limited Meenakshi Power Private Limited SDE Engineers Private Limited MCC Projects Private Limited Sri Durga Estates Private Limited SDE Software Solutions Private Limited SDE Properties Private Limited

CAPITAL STRUCTURE

After 31.03.2012

Authorised Capital : Rs. 16000.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 7295.036 Millions

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount

1400000000	Equity Shares	Rs. 10/- each	Rs. 14000.000 Millions
200000000	Preference Shares	Rs. 10/- each	Rs. 2000.000 Millions
	Total		Rs. 16000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

643226857	Equity Shares	Rs. 10/- each	Rs. 6432.269 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	6432.269	5251.501
(b) Reserves & Surplus	0.743	0.743
(c) Money received against share warrants	0.000	0.000

(2) Share Application money pending allotment	31.300	0.000
Total Shareholders’ Funds (1) + (2)	6464.312	5252.244

(3) Non-Current Liabilities
(a) long-term borrowings	15655.074	9512.113
(b) Deferred tax liabilities (Net)	0.069	0.069
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	15655.143	9512.182

(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	0.000	0.000
(c) Other current liabilities	2567.874	916.260
(d) Short-term provisions	6.498	9.426
Total Current Liabilities (4)	2574.372	925.686

TOTAL	24693.827	15690.112

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	615.676	538.391
(ii) Intangible Assets	3.509	1.183
(iii) Capital work-in-progress	18892.020	9118.984
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	4970.040	4355.420
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	24481.245	14013.978

(2) Current assets
(a) Current investments	20.096	0.000
(b) Inventories	0.000	0.000
(c) Trade receivables	0.000	0.000
(d) Cash and cash equivalents	178.616	1662.006
(e) Short-term loans and advances	6.080	7.312
(f) Other current assets	7.790	6.816
Total Current Assets	212.582	1676.134

TOTAL	24693.827	15690.112

KEY RATIOS

PARTICULARS	31.03.2012	31.03.2011
Debt Equity Ratio (Total Debt /Networth)	2.432	1.81

Current Ratio (Current Asset/Current Liability)	0.08	1.81

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	No
12]	Profitability for last three years	No
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	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	----------
22]	Litigations that the firm / promoter involved in	----------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------
26]	Buyer visit details	----------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

INDEX OF CHARGE:

Sr .No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10381016	18/09/2012	2,090,000,000.00	STATE BANK OF HYDERABAD	INDUSTRIAL FINANCE BRANCH ' TOPAZ' BUILDING, AMRUTHA HILLS, PUNJAGUTTA, HYDERABAD, Andhra Pradesh - 500082, INDIA	B59881755
2	10330656	30/12/2011	750,000,000.00	STATE BANK OF MYSORE	INDUSTRIAL FINANCE BRANCH, MY HOME JUPALLY, AMEERPET, HYDERABAD, Andhra Pradesh - 500016, INDIA	B30179790
3	10304092	03/08/2011	1,000,000,000.00	STATE BANK OF HYDERABAD	INDUSTRIAL FINANCE BRANCH, TOPAZ BUILDING, AMRUTHA HILLS, PUNJAGUTTA, HYDERABAD, Andhra Pradesh - 500082, INDIA	B19554468
4	10270775	08/03/2011 *	23,400,000,000.00	RURAL ELECTRIFICATION CORPORATION LIMITED	CORE 4SCOPE COMPLEX, 7 LODI ROAD, NEW DELHI, Delhi - 110003, INDIA	B08351710
5	10169294	19/09/2011 *	11,470,000,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI, Maharashtra - 400005, INDIA	B22720023

* Date of modification charge

OPERATIONS:

STATUS OF PHASE-I PROJECT:

The company has synchronized Unit-I successfully with grid on 9th June, 2012 and, trial run operations are going on and likely to achieve commercial operations (COD) during the Second week of September, 2012.

The power generated during trial operations is being sold as infirm power. As on date the plant is operating and generating power from 90 MW to 100 MW on average.

Unit-II: Boiler is already lighted up on 1st August, 2012 and pre-commissioned activities are going at brisk pace. The Company does not foresee any major hurdles and is expected to achieve commercial operations in the month of October, 2012.

During the year, the company had participated in a tender invited by APCPDCL through PTC India Limited and the Company got LOI from PTC for supply of power to APCPDCL for 133.50 MW. Also participated in a medium term bid invited by APCPDCL for supply of power of 133 MW for 3 years Commencing from June 2013 to May 2016 and result is awaited.

STATUS OF PHASE-II PROJECT:

During the year, the plant capacity of Phase II was revised from existing capacity of (2*300) 600 MW to (2*350 MW) 700 MW for operational economics and the same was apprised to Lenders for their approval and sanction of additional term loan to meet enhanced capacity project cost. Your directors are glad to inform that the Lead lender of the consortium of lenders for Phase-II has approved the enhanced capacity and sanctioned its share and balance term loan is under process with other consortium lenders. The revised estimated project cost is Rs.

37000.000 Millions with promoters and other shareholders contribution at Rs. 9250.000 Millions and debt portion of Rs. 27750.000 Millions.

FIXED ASSETS:

Land
Building
Plant and Equipment
Furniture and fixtures
Vehicles
Office equipment

ARTICLES:

TEXT-FITCH CUTS MEENAKSHI ENERGY'S BANK LOANS TO 'FITCH D(IND)'

(The following statement was released by the rating agency)

July 02, 2013

Fitch Ratings has downgraded India-based Meenakshi Energy Private Limiteds (MEPL) Phase I INR10,600m and Phase II INR23,400m senior bank loans to 'Fitch D(ind)' from 'Fitch BB(ind)'/Outlook Negative.

The downgrade reflects delays in the payment of interest on the term debt caused in particular by delays to the commencement of commercial operations for phase I of its new coal-based thermal power plant. Unless sponsor equity is injected, the company is unlikely to meet the first principal repayment on its Phase I loan, falling due on 30 June 2012, on time.

Furthermore, according to the lender's engineer's report, Phase II of the coal-based thermal power plant is expected to be delayed by 15 months from the scheduled completion date of 31 August 2012. The likely cost overruns on both phases, especially interest payment during construction, will add further stress to the project.

Fitch notes that the first unit of Phase I is currently in the advanced stage of testing and commissioning. Positive rating action may result from cash injection by sponsors for timely debt servicing, stabilisation of the plant's performance after commercial operations and evidence of the project's cash generation at forecasted levels, so as to enable timely debt service on a sustained basis.

MEPL, promoted by the Meenakshi group of companies, is implementing coal-based thermal power plants in two phases of 300MW (two units of 150MW each) and 600MW (two units of 300MW each) in the coastal area of Thaminappatnam in the state of Andhra Pradesh at a cost of INR14,280m and INR31,200m, respectively.

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. 61.92
UK Pound	1	Rs. 99.45
Euro	1	Rs. 93.92

INFORMATION DETAILS

Information Gathered by :	PDT

Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--MARGINS	-5~5
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NB		NEW BUSINESS

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

Mr. P. Baburaj

2.432

0.08

Unit