MIRA INFORM REPORT

Report Date :

13.02.2014

IDENTIFICATION DETAILS

Name :	PACE POWER SYSTEMS PRIVATE LIMITED
Registered Office :	Plot No. V 12, Industrial Estate, Kumbalgodu, Bangalore- Mysore Highway, Bangalore-560074, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	01.03.2007
Com. Reg. No.:	08-041949
Capital Investment / Paid-up Capital :	Rs. 21.007 Millions
CIN No.: [Company Identification No.]	U31909KA2007PTC041949
TAN No.: [Tax Deduction & Collection Account No.]	BLRP07837E
PAN No.: [Permanent Account No.]	AAECP2697K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Power Electronic Products mainly for Telecom Sector and servicing of Telecom Tower Companies.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 2400000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Management of the company has failed to file its latest financials of 2013 with government department. As per of 2012, financial position of the company appears to be decent. Trade relations are reported to be fair. Business is active. Payment Terms are reported to be usually correct The company can be considered for normal business dealings at usual trade terms and condition.

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 – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

India was ranked 94^th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Fund Based Limit = BBB-
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation it carry moderate credit risk
Date	August, 2012

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

INFORMATION DECLINED

Management Non-Cooperative (91-80-28437792)

LOCATIONS

Registered Office / Hade Office :	Plot No. V 12, Industrial Estate, Kumbalgodu, Bangalore- Mysore Highway, Bangalore-560074, Karnataka, India
Tel. No.:	91-80-28437792/ 94
Fax No.:	91-80-28437793
E-Mail :	krishnamurthy.vv@pacepowerindia.com sundar.k@pacepowerindia.com sales@pacepowerindia.com
Website :	http://www.pacepowerindia.com
Factory :	Unit- 2, Plot No. 27- A, 1st Phase, K.I.A.D.B., Mysore Road, Kumbalgodu, Bangalore - 560 001, Karnataka, India
Tel. No.:	91-80-28437795
Branch Office :	Located At · Hyderabad · Maharashtra · Assam · Orissa

DIRECTORS

As on 29.09.2012

Name :

Mr. Maddisetty Venugopal Rao

Designation :

Director

Address :

# 6, 4^th Cross, Maruthi Nagar, Chandra Layout, Bangalore-560040, Karnataka, India

Date of Birth/Age :

01.01.1966

Date of Appointment :

01.12.2009

DIN No.:

02070491

PAN No.:

AFNPM2853D

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	U31909KA2007PTC041949	PACE POWER SYSTEMS PRIVATE LIMITED	Managing director	01-12-09	01-03-07	-	Active	NO
2	U29307KA2010PTC053077	PACE RENEWABLE ENERGIES PRIVATE LIMITED	Director	31-03-10	31-03-10	-	Active	NO
3	U15400KA2010PTC054233	PACE AGROTECH (INDIA) PRIVATE LIMITED	Director	26-06-10	26-06-10	-	Active	NO
4	U01300KA2010PTC054249	PACE ORGANIC FARMS PRIVATE LIMITED	Director	28-06-10	28-06-10	-	Active	NO
5	U45207KA2010PTC054269	PACE SOLAR FARMS (INDIA) PRIVATE LIMITED	Director	29-06-10	29-06-10	-	Active	NO
6	U15530KA2011PTC057530	DROPS TOTAL SPIRITS PRIVATE LIMITED	Director	10-03-11	10-03-11	-	Active	NO
7	U45200KA2011PLC061346	LANARSY INFRA LIMITED	Director	24-11-11	24-11-11	-	Active	NO

Name :

Mrs. Maddisetty Padama Venugopal

Designation :

Director

Address :

# 6, 4^th Cross, Maruthi Nagar, Chandra Layout, Bangalore-560040, Karnataka, India

Date of Birth/Age :

15.06.1971

Date of Appointment :

01.03.2007

DIN No.:

02070662

PAN No.:

ADZPP6443Q

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	U31909KA2007PTC041949	PACE POWER SYSTEMS PRIVATE LIMITED	Director	01-03-07	01-03-07	-	Active	NO
2	U29307KA2010PTC053077	PACE RENEWABLE ENERGIES PRIVATE LIMITED	Director	31-03-10	31-03-10	-	Active	NO
3	U15400KA2010PTC054233	PACE AGROTECH (INDIA) PRIVATE LIMITED	Director	26-06-10	26-06-10	-	Active	NO
4	U01300KA2010PTC054249	PACE ORGANIC FARMS PRIVATE LIMITED	Director	28-06-10	28-06-10	-	Active	NO
5	U45207KA2010PTC054269	PACE SOLAR FARMS (INDIA) PRIVATE LIMITED	Director	29-06-10	29-06-10	-	Active	NO
6	U45200KA2011PLC061346	LANARSY INFRA LIMITED	Director	24-11-11	24-11-11	-	Active	NO

Name :

Kammisetty Vasudevakumar

Designation :

Director

Address :

No.2, Muneshwara Nagar, Bhel Layout Mallathalli, Ullal Road, Bangalore – 560056, Karnataka, India

Date of Birth/Age :

01.07.1977

Date of Appointment :

30.09.2011

DIN No.:

02241297

PAN No.:

AEEPV9574Q

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	U31909KA2007PTC041949	PACE POWER SYSTEMS PRIVATE LIMITED	Director	30-09-11	19-11-10	-	Active	NO
2	U29307KA2010PTC053077	PACE RENEWABLE ENERGIES PRIVATE LIMITED	Director	30-09-11	19-11-10	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Maddisetty Venugopal Rao	700700
Maddisetty Padma Venugopal	700000
M. Rajiv	350000
Lahri (Minor), Represented By Father and Natural Guardian M. Venugopal Rao	350000
Total	2100700

As on 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Power Electronic Products mainly for Telecom Sector and servicing of Telecom Tower Companies.
Exports :	Not Divulged
Imports :	Not Divulged

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Operators

· Airtel

· Aircel

· BSNL

Networks Venders

· Motorola

· Alu

· Ericsson

TSPs and BOL

· Indus Towers

· Xcel Energy

· Wttil

No. of Employees :

Information declined by the management

Bankers :

Deutsche Bank AG, Raheja Towers, 26-27, M. G. Road, Bangalore - 560001, Karnataka, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Short-term borrowings
Loans repayable on demand from banks (Hypothecation of Vehicles)	0.000	0.614
Total	0.000	0.614

Banking Relations :	---
Financial Institutions	Pace Power Systems Private Limited, Bidadi Branch, Nalli Gudda Tank Road, Bidadi, Ramanagar Taluk and District, Bangalore - 562109, Karnataka, India
Auditors :
Name :	H. C. Khincha and Company Chartered Accountants
Address :	151, Avenue Road, Bangalore – 560002, Karnataka, India
PAN No.:	AABFH7261F
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	Pace Power Systems
Subsidiary Company :	Pace Renewable Energies Private Limited CIN No.: U29307KA2010PTC053077

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2100700	Equity Shares	Rs.10/- each	Rs.21.007 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	21.007	21.007
(b) Reserves & Surplus	579.011	450.639
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	600.018	471.646
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	4.655	0.264
(c) Other long term liabilities	13.788	5.594
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	18.443	5.858
(4) Current Liabilities
(a) Short term borrowings	0.000	0.614
(b) Trade payables	417.423	743.658
(c) Other current liabilities	52.778	11.384
(d) Short-term provisions	92.547	33.486
Total Current Liabilities (4)	562.748	789.142
TOTAL	1181.209	1266.646
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	16.380	18.205
(ii) Intangible Assets	1.880	2.655
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	98.000	98.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	60.800	23.400
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	177.060	142.260
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	107.547	167.240
(c) Trade receivables	671.608	757.045
(d) Cash and cash equivalents	90.423	127.883
(e) Short-term loans and advances	132.701	70.736
(f) Other current assets	1.870	1.482
Total Current Assets	1004.149	1124.386
TOTAL	1181.209	1266.646

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		21.007
2] Share Application Money		0.000
3] Reserves & Surplus		308.371
4] (Accumulated Losses)		0.000
NETWORTH		329.378
LOAN FUNDS
1] Secured Loans		2.178
2] Unsecured Loans		0.000
TOTAL BORROWING		2.178
DEFERRED TAX LIABILITIES		0.587
TOTAL		332.143
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		17.521
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	191.633
	Sundry Debtors	596.011
	Cash & Bank Balances	366.628
	Other Current Assets	0.000
	Loans & Advances	209.387
Total Current Assets		1363.659
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	804.501
	Other Current Liabilities	54.878
	Provisions	189.884
Total Current Liabilities		1049.263
Net Current Assets		314.396
MISCELLANEOUS EXPENSES		0.226
TOTAL		332.143

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	2537.893	2590.765	2949.253
		Other Income
		TOTAL	2537.893	2590.765	2949.253
Less	EXPENSES
		Office Expenses
		Administrative Expenses		2367.004	2590.426
		Advertising Expenses
		TOTAL	2251.792 (Including Depreciation Expenses)	2367.004	2590.426
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION			223.761	358.827
Less/ Add	DEPRECIATION/ AMORTISATION			5.632	3.034
	PROFIT BEFORE TAX		286.101	218.129	355.793
Less	TAX		96.692	75.862	118.219
	PROFIT AFTER TAX		189.409	142.267	237.574
	Earnings Per Share (Rs.)		90.16	67.72	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	7.46	5.49	8.06
Return on Total Assets (PBT/Total Assets}	(%)	26.41	18.67	25.76
Return on Investment (ROI) (PBT/Networth)		0.48	0.46	1.08
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.01
Current Ratio (Current Asset/Current Liability)		1.78	1.42	1.30

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	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	Yes
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

Note:

The Registered office of the company has been shifted from No. 01153, Ashirwad Building, Andhrahalli Main Raod, Vishwaneedam Post, Peenya II State, Bangalore-560074, Karnataka, India to present address w.e.f. 20.03.2009

FINANCIAL AND OPERATIONAL PERFORMANCE

During the year the Company has recorded reasonable revenues and profits in a more competitive business environment. The Gross Revenue of the Company during the year is Rs. 2537.893 Millions and profit before Tax is Rs.286.101 Millions.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10374361	02/08/2012	39,600,000.00	DEUTSCHE BANK AG	RAHEJA TOWERS, 26-27, M. G. ROAD, BANGALORE, KARNATAKA - 560001, INDIA	B57212441
2	10235269	15/04/2013 *	670,000,000.00	CANARA BANK	BIDADI BRANCH, NALLI GUDDA TANK ROAD, BIDADI, RAMANAGAR TALUK AND DIST, BANGALORE, KARNATAKA - 562109, INDIA	B74782806

* Date of charge modification

FIXED ASSETS:

· Furniture and Fixtures

· Computer

· Plant and Machinery

· 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 records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.13
UK Pound	1	Rs.102.25
Euro	1	Rs.84.72

INFORMATION DETAILS

Information Gathered by :	NYA
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.