MIRA INFORM REPORT

Report Date :

01.08.2014

IDENTIFICATION DETAILS

Name :	M. E ENERGY PRIVATE LIMITED (w.e.f. 08.10.2008)
Formerly Known As :	MAXHEAT ENGINEERING PRIVATE LIMITED
Registered Office :	Gat No. 1083/1B, Markal, Taluka Khed, Pune – 412105, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	30.03.1998
Com. Reg. No.:	25-114226
Capital Investment / Paid-up Capital :	Rs.15.843 Millions
CIN No.: [Company Identification No.]	U51503PN1998PTC114226
TAN No.: [Tax Deduction & Collection Account No.]	PNEM02230E
PAN No.: [Permanent Account No.]	AABCM9355L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Energy Saving, Heating and Cooling Systems.
No. of Employees :	160 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating is constrained on account of company’s moderate financial risk profile and loss that company has incurred from its operation during financial year 2013. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing with some caution.

NOTES:

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

ECGC Country Risk Classification List – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long term - Term loan=B+
Rating Explanation	Risk prone credit quality and very high credit risk.
Date	March, 2013

Rating Agency Name	ICRA
Rating	Short term - Non fund based=A4
Rating Explanation	Minimal degree of safety and high credit risk.
Date	March, 2013

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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Dharmesh Patel
Designation :	Commercial Department
Contact No.:	91-9623442905
Name :	Mr. Yogesh
Designation :	Purchase Department
Contact No.:	91-9623442919
Date :	28.07.2014

LOCATIONS

Registered / Corporate / Head Office / Factory :	Gat No. 1083/1B, Markal, Taluka Khed, Pune – 412105, Maharashtra, India
Tel. No.:	91-2135-660890-898
Mobile No.:	91-9623442905 (Mr. Dharmesh Patel) 91-9623442919 (Mr. Yogesh)
Fax No.:	91-2135-660889
E-Mail :	info@meenergy.com mepl@meenergy.com raghu@meenergy.com oak@meenergy.com dharmesh.patel@meenergy.com iut@eth.net
Website :	www.meenergy.com
Area :	36000 sq. ft.
Location :	Owned

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Vijayasanker Kalathil Kartha

Designation :

Managing Director

Address :

Flat No. 501, Tower A, Gold Coast, Ivory Estate, Baner Road, Pune – 411008, Maharashtra, India

Date of Birth/Age :

06.05.1960

Date of Appointment :

30.03.1998

DIN No.:

00176616

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U51503PN1998PTC114226	M. E ENERGY PRIVATE LIMITED	Managing director	30/03/1998	30/03/1998	-	Active	NO
2	U29299PN2005PTC020886	MAXHEAT EQUIPMENTS PRIVATE LIMITED	Managing director	16/06/2005	16/06/2005	-	Strike off	NO
3	U29299PN2006PTC021937	MAXENERGY EQUIPMENTS PRIVATE LIMITED	Director	01/02/2006	01/02/2006	26/03/2010	Active	NO
4	U91110PN2011NPL140746	MARKAL INDUSTRIES ASSOCIATION	Director	13/09/2011	13/09/2011	-	Active	NO

Name :

Mr. Shrishail Sangappa Bahirgonde

Designation :

Director

Address :

Shree Premsunder, Veerbhadra Nagar, Baner, Pune – 411045, Maharashtra, India

Date of Birth/Age :

01.06.1951

Date of Appointment :

09.09.2008

DIN No.:

01939398

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U51503PN1998PTC114226	M. E ENERGY PRIVATE LIMITED	Director	09/09/2008	08/12/2007	-	Active	NO
2	U91100PN2013NPL148542	CHAKAN CHAMBER OF COMMERCE INDUSTRIES AND AGRICULTURE	Director	21/08/2013	21/08/2013	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Dharmesh Patel
Designation :	Commercial Department
Name :	Mr. Yogesh
Designation :	Purchase Department

MAJOR SHAREHOLDERS

AS ON 30.09.2013

Names of Shareholders	No. of Shares	% of Holding
Vijayasanker K. Kartha	547640	34.57
Reema K. Kartha	212920	13.44
Shrishail S Bahirgonde	108700	6.86
Sudhir B Bharle	108700	6.86
Rashmi Kulkarni	30240	1.91
Helix Investments Company, Mauritius	576120	36.36
Total	1584320	100.00

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2013

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	36.36
Directors or relatives of Directors	63.64
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Energy Saving, Heating and Cooling Systems.
Product Description :	· Heat Exchangers · Waste Heat Recovery Systems · Boiler Pressure Parts
Exports :
Products :	Finished Goods
Countries :	· Sri Lanka · Gulf Countries
Imports :
Products :	Raw Material
Countries :	· Germany · Italy
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS (As on 31.03.2011)

Installed Capacity *

Actual Production - 85 Systems

* The Company is a project based company and manufacturers Heat Exchangers, Waste Heat Recovery Systems, Energy Saving Systems, Heating and Cooling Equipments, Heat Exchangers, Boiler Pressure Parts etc. as per the customer specifications, hence there as the installed capacity.

GENERAL INFORMATION

Customers :

· OEM’s

· Automobile Industries

No. of Employees :

160 (Approximately)

Bankers :

· Bank of India, Spicer College (Aundh Branch), Aundh, Pune – 411037, Maharashtra, India

· Canara Bank, Pimpri Branch, Umed Bhavan, Pimpri, Pune – 411018, Maharashtra, India

· Bank of Maharashtra

· ICICI Bank

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Term loan from bank	16.145	22.172
Vehicle loans from banks	1.406	1.362
Short Term Borrowings
Loans repayable on demand
Working capital loans from banks	56.560	90.059
Total	74.111	113.593

Banking Relations :	--
Auditors :
Name :	B B S R and Company Chartered Accountants
Address :	703, 7^th Floor, Godrej Castlemaine, Next to Ruby, Hall Clinic, Bund Garden Road, Pune – 411001, Maharashtra, India
Tel. No.:	91-20-30504000
Fax No.:	91-20-30504100
PAN No.:	AAKFB4397F
Enterprises over which key management personnel and the relatives of such personnel exercise control / significant influence :	· Sri Aurobindo Motors · Maxenergy Equipments Private Limited · Yashshri Engineers

CAPITAL STRUCTURE

AS ON 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1584320	Equity Shares	Rs.10/- each	Rs.15.843 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	15.843	10.082	10.082
(b) Reserves & Surplus	111.935	54.622	48.249
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	127.778	64.704	58.331
(3) Non-Current Liabilities
(a) long-term borrowings	21.911	27.937	29.623
(b) Deferred tax liabilities (Net)	0.000	4.817	5.129
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	5.958	0.000	0.000
Total Non-current Liabilities (3)	27.869	32.754	34.752
(4) Current Liabilities
(a) Short term borrowings	60.560	90.059	42.289
(b) Trade payables	52.587	70.811	50.215
(c) Other current liabilities	19.829	23.922	39.086
(d) Short-term provisions	4.873	6.551	2.559
Total Current Liabilities (4)	137.849	191.343	134.149
TOTAL	293.496	288.801	227.232
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	67.293	66.981	66.927
(ii) Intangible Assets	2.338	1.345	0.438
(iii) Capital work-in-progress	3.710	3.500	3.500
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	13.793	9.610	2.094
(e) Other Non-current assets	1.980	0.000	0.000
Total Non-Current Assets	89.114	81.436	72.959
(2) Current assets
(a) Current investments	65.000	0.000	0.000
(b) Inventories	64.121	79.290	36.343
(c) Trade receivables	52.636	103.582	103.591
(d) Cash and cash equivalents	10.488	12.890	7.117
(e) Short-term loans and advances	12.063	11.468	7.186
(f) Other current assets	0.074	0.135	0.036
Total Current Assets	204.382	207.365	154.273
TOTAL	293.496	288.801	227.232

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income
		Other Income
		TOTAL	215.971	384.008	208.842
Less	EXPENSES
		TOTAL	347.940	371.930	203.373
	PROFIT/(LOSS) BEFORE TAX		(131.969)	12.078	5.469
Less	TAX		4.983	5.705	1.638
	PROFIT/(LOSS) AFTER TAX		(126.986)	6.373	3.831
	Earnings/(Loss) Per Share (Rs.)		(80.15)	NA	NA

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(58.80)	1.66	1.83
Return on Total Assets (PBT/Total Assets}	(%)	(45.54)	4.23	2.44
Return on Investment (ROI) (PBT/Networth)		(1.03)	0.19	0.09
Debt Equity Ratio (Total Debt /Networth)		0.65	1.82	1.23
Current Ratio (Current Asset/Current Liability)		1.48	1.08	1.15

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	10.082	10.082	15.843
Reserves & Surplus	48.249	54.622	111.935
Net worth	58.331	64.704	127.778
long-term borrowings	29.623	27.937	21.911
Short term borrowings	42.289	90.059	60.560
Total borrowings	71.912	117.996	82.471
Debt/Equity ratio	1.233	1.824	0.645

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	208.842	384.008	215.971
		83.875	(43.759)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	208.842	384.008	215.971
Profit	3.831	6.373	(126.986)
	1.83%	1.66%	(58.80%)

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	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

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Loans from a director	4.360	4.403
Short Term Borrowings
Others	4.000	0.000
Total	8.360	4.403

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10229059	14/03/2012 *	245,000,000.00	CANARA BANK	PIMPRI BRANCH, UMED BHAVAN, PIMPRI, PUNE, MAHARASHTRA - 411018, INDIA	B36661403

*Date of modification Charges

FIXED ASSETS:

· Factory Land

· Factory Shed and Building

· Office Equipment

· Plant and Machinery

· Computers

· Laptops

· Software

· Scanners

· UPS

· Furniture and Electrical Fittings

· Office Equipments

· Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

No 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.60.25
UK Pound	1	Rs.101.92
Euro	1	Rs.80.70

INFORMATION DETAILS

Information Gathered by :	PDT
Analysis Done by :	KRN
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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.