MIRA INFORM REPORT

Report Date :

20.01.2014

IDENTIFICATION DETAILS

Name :	IMP POWERS LIMITED (w.e.f. January 2005)
Formerly Known As :	IMP POWER LIMITED INDUSTRIAL METERS LIMITED
Registered Office :	Survey No. 263/3/2/2, Sayli Village, Umar Kuin Road, Silvassa - 396230, (U.T.) Dadra and Nagar Haveli
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	24.03.1961
Com. Reg. No.:	54-000232
Capital Investment / Paid-up Capital :	Rs.116.975 Millions
CIN No.: [Company Identification No.]	L31300DN1961PLC000232
TAN No.: [Tax Deduction & Collection Account No.]	MUMI06707B
PAN No.: [Permanent Account No.]	AAACI0999M
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Exporter of Transformers and Spares.
No. of Employees :	450 [Approximately]

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 3963000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Exist
Comments :	Subject is an established company having satisfactory track record. Management has considered nine months financial year ended 31^st March, 2013. The company is performing well. However, consistent high working capital utilization levels may deteriorate the liquidity position. The ratings also take into consideration that the subject has been under corporate debt restructuring plan until previous year 2011-12. Further the cell has approved the exit of the company from the restructuring plan pursuant to term and conditions of the cell. However, trade relations are fair. Business is active. Payment terms are reported as slow but correct. In view of strong and established operational track record, the subject can be considered 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.

INDIAN ECONOMIC OVERVIEW

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	October 21, 2013

Rating Agency Name	CARE
Rating	Short term bank facilities A3+
Rating Explanation	Moderate degree of safety and High credit risk.
Date	October 21, 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 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Anand Bane
Designation :	Senior Commercial Manager
Contact No.:	91-260-2681040
Date :	17.01.2014

LOCATIONS

Registered Office / Factory 1 :	Survey No. 263/3/2/2, Sayli Village, Umar Kuin Road, Silvassa - 396230, (U.T.) Dadra and Nagar Haveli, India
Tel. No.:	91-2368-02368 / 42255 / 02368 / 4320/2/260-2630810/11
Fax No.:	91-2368-42711/260-2642711
E-Mail :	investor@imp-powers.com impsil@ishwarn.com contactus@imp-power.com rmalani@imp-power.com homkt@imp-powers.com silvassaworks@imp-powers.com info@imp-powers.com
Website :	http://www.imp-power.com
Location :	Owned
Corporate Office :	35/C, Popular Press Building, 2nd Floor, Pt. M M Malviya Road, Tardeo, Mumbai - 400034
Tel. No.:	91-22-23539180-85
Fax No.:	91-22-23539180-87
Factory 2 :	85,Government Industrial Estate, Kandivli (West), Mumbai – 400 067, Maharashtra, India
Tel. No.:	91-22-28686331 / 28686333 / 28683332
Fax No.:	91-22-28688977
E-Mail :	mumbaiworks@imp-power.com

DIRECTORS

AS ON 31.03.2013

Name :	Mr. Ramniwas R. Dhoot
Designation :	Chairman
Address :	Shriniketan, 2^nd Floor, 86-A, Netaji Subhash Road, Mumbai – 400 002, India.
Date of Birth/Age :	5^th March, 1941
Date of Appointment :	16^th August, 1962
Name :	Mr. Ajay R. Dhoot
Designation :	Managing Director
Address :	Shriniketan, 2^nd Floor, 86-A, Netaji Subhash Road, Mumbai – 400 002, India.
Date of Birth/Age :	9^th March, 1964
Date of Appointment :	14^th May, 1982
Name :	Mr. Aditya R. Dhoot
Designation :	Joint Managing Director
Address :	Shriniketan, 2^nd Floor, 86-A, Netaji Subhash Road, Mumbai – 400 002, India.
Name :	Mr. R T Rajguroo
Designation :	Director
Date of Birth/Age :	27th June, 1944
Qualification :	B.Com., DFM, CAIIB, LL.B., FCS
Date of Appointment :	30th July, 2005
Name :	Mr. Prashant J Pandit
Designation :	Director
Date of Birth/Age :	10th February, 1955
Qualification :	B.Com. LL.B.
Date of Appointment :	30th July, 2005
Name :	Mr. Jayant N Godbole
Designation :	Additional Director
Name :	Mr. Prakash Bagla
Designation :	Director
Name :	Mr. Rajendra Mimani
Designation :	Director – Marketing
Name :	Mr. Siby Antony
Designation :	Additional Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2013

Category of Shareholder	Total No. of Shares	% of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1284402	15.79
Bodies Corporate	2863801	35.20
Sub Total	4148203	50.98
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	4148203	50.98
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	344206	4.23
Sub Total	344206	4.23
(2) Non-Institutions
Bodies Corporate	1809766	22.24
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1476227	18.14
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	314547	3.87
Any Others (Specify)	43614	0.54
Clearing Members	19717	0.24
Non Resident Indians	23897	0.29
Sub Total	3644154	44.79
Total Public shareholding (B)	3988360	49.02
Total (A)+(B)	8136563	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	8136563	0.00

SHAREHOLDING OF SECURITIES (INCLUDING SHARES, WARRANTS, CONVERTIBLE SECURITIES) OF PERSONS BELONGING TO THE CATEGORY “PROMOTER AND PROMOTER GROUP”

Sl. No.	Name of the Shareholder	Details of Shares held
		No. of Shares held	As a % of grand total (A)+(B)+(C)
1	Ramniwas R Dhoot	2,42,529	2.98
2	Ajay R Dhoot	2,32,977	2.86
3	Aaditya R Dhoot	2,53,315	3.11
4	Ramniwas R Dhoot HUF	10,322	0.13
5	R R Dhoot	1,56,515	1.92
6	Advance Transformer & Equipment Private Limited	7,73,189	9.50
7	Shree Kishoriju Trading & Investment Private Limited	5,87,552	7.22
8	Shree Rasbihari Electricals Private Limited	2,83,115	3.48
9	Radhika A Dhoot	1,67,850	2.06
10	Smita A Dhoot	2,11,394	2.60
11	Rajkumar R Dhoot	9,500	0.12
12	Mangalam Drugs & Organics Limited	1,72,172	2.12
13	Shree Rasbihari Trading and Investments Private Limited	7,97,773	9.80
14	Mangalam Laboratories Private Limited	2,50,000	3.07
	TOTAL	41,48,203	50.98

SHAREHOLDING OF SECURITIES (INCLUDING SHARES, WARRANTS, CONVERTIBLE SECURITIES) OF PERSONS BELONGING TO THE CATEGORY “PUBLIC” AND HOLDING MORE THAN 1% OF THE TOTAL NUMBER OF SHARES

Sl. No.	Name of the Shareholder	Details of Shares held
		No. of Shares held	As a % of grand total (A)+(B)+(C)
1	Stressed Assets Stabilization Fund	344206	4.23
2	Percept Financial Services Private Limited	180781	2.22
3	Boesky Securities Private Limited	81419	1.00
4	Manubhai Mangaldas Securities Private Limited	100000	1.23
5	IL & FS Trust Company Limited	637200	7.83
6	India Business Excellence Fund	542800	6.67
	TOTAL	1886406	23.18

SHAREHOLDING OF SECURITIES (INCLUDING SHARES, WARRANTS, CONVERTIBLE SECURITIES) OF PERSONS (TOGETHER WITH PAC) BELONGING TO THE CATEGORY “PUBLIC” AND HOLDING MORE THAN 5% OF THE TOTAL NUMBER OF SHARES OF THE COMPANY

Sl. No.	Name of the Shareholder	Details of Shares held
		No. of Shares held	As a % of grand total (A)+(B)+(C)
1	IL&FS Trust Company Limited	637200	7.83
2	India Business Excellence Fund	542800	6.67
	TOTAL	1180000	14.50

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Transformers and Spares.

Products :

Production Description	Items Code (ITC Code)
Power and Distribution Transformers	8.504
Meters	9.030

• EHV Transformers
• Auto Transformers
• Power Transformers
• Distribution Transformers
• Auxilliary Transformers
• Arc Furnace Transformers
• Thyristor Duty Transformers
• Station Transformers
• Special Purpose Transformers

Exports :

Products :

Transformers and Spares

Countries :

· USA

· UK

· Middle East

· Asian Country

· Europe

Imports :

Products :

Raw Materials

Countries :

· Germany

· UK

· Malaysia

· France

· USA

GENERAL INFORMATION

No. of Employees :

450 [Approximately]

Bankers :

· State Bank of Hyderabad

· State Bank of India

· Bank of India

· The Karnataka Bank Limited

· IDBI Bank Limited

· Axis Bank Limited

Facilities :

SECURED LOANS	31.03.2013 (9 Months)	30.06.2012 (12 Months)
	(Rs. In Millions)
LONG TERM BORROWINGS
Bonds	37.105	51.019
Term loans From banks	134.752	122.769
Other loans and advances (Vehicle Loan)	7.431	3.277
SHORT TERM BORROWINGS
Loans repayable on demand From banks
Cash Credit Facilities	380.305	174.913
Working Capital Demand Loan	299.899	373.200
Packing Credit Loan	0.000	71.300
TOTAL	859.492	796.478

NOTE:

LONG TERM BORROWINGS

1. Term loan and Bonds from Financial Institutions and Banks are secured by way of first charge on all Fixed Assets of the Company both present and future on pari passu basis with other member bank of consortium and Second charge on all Current Assets of the company both present and future on pari-passu basis with other member bank of consortium and personal guarantee of promoter Directors.

2. Non-Convertible Redeemable Bonds including interest will be redeemed from 1st April 2013 to 31st March 2016 in twelve quarterly equal installment. Out of which Rs. 18.552 millions will be redeemed in the next 12 months considered under current liabilities.

3. Vehicle Loan are secured by hypothecation of vehicles.

SHORT TERM BORROWINGS

1. Working Capital loan from Banks are secured against first charge on all current assets of the company, present and future, on pari passu basis with banks in the consortium and Second charge on all Fixed Assets of the company, both present and future, on pari-passu basis with member banks of consortium. Also collateral security of equitable Mortgage of residential property in the name of Directors situated at Ground floor, 86A, Shriniketan, Netaji Subhhash Marg, Mumbai on pari passu basis with the member of banks of Consortium (Except Axis Bank Limited and personal guarantee of promoter Directors.

Banking Relations :	--
Auditors :
Name :	Batliboi and Purohit Chartered Accountants
Address :	National Insurance Building, 204, Dadabhoy Naoroji Road, Fort, Mumbai – 400001, Maharashtra, India
Subsidiaries :	Ø IMP Energy Limited
Associates	Ø Raga Organics Private Limited Ø Advance Transformers and Equipments Private Limited Ø Shree Kishoriju Trading and Investments Private Limited Ø Shree Rasbihari Electricals Private Limited Ø Shree and Sons. Ø Universal Transformers Private Limited Ø Shree Rasbihari Trading and Investments Private Limited Ø Raj Exports Private Limited Ø Mangalam Laboratories Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
27670000	Equity Shares	Rs.10/- each	Rs.276.700 Millions
6330000	Preference shares	Rs.10/- each	Rs.63.300 Millions
	Total		Rs.340.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
8140963	Equity Shares	Rs.10/- each	Rs.81.410 Millions
2450000	4% Cumulative preference shares	Rs.10/- each	Rs.24.500 Millions
1108738	1% Preference shares	Rs.10/- each	Rs.11.087 Millions
	Total		Rs.116.997 Millions

Subscribed & Paid-up Capital

No. of Shares	Type	Value	Amount
8136563	Equity Shares	Rs.10/- each	Rs.81.366 Millions
2450000	4% Cumulative preference shares	Rs.10/- each	Rs.24.500 Millions
1108738	1% Preference shares	Rs.10/- each	Rs.11.087 Millions
	Shares Forfeited		Rs.0.022 Million
	Total		Rs.116.975 Millions

NOTE:-

1. Equity Shares includes 11,27,000 shares issued as fully paid up Bonus Shares during 1994-95 by Capitalisation of Revaluation Reserve.

2. 4% Redeemable Preference Shares along with dividend will be redeemed from 1st April 2013 to 31st March 2016 in twelve quarterly equal installments.

3. Corporate Debt Restructuring (CDR CELL) has approved the recompense amount towards interest liabilities amounting to Rs. 44.350 millions for the Company to exit from CDR scheme in the previous financial year. Pursuant to terms and conditions of the CDR cell, 25% of the total amount has been paid by the company in cash and for balance 75% ,the Company has issued 1% Cumulative Redeemable Preference Shares, which are redeemable in 3 half yearly equal installments beginning from April 2012 To April 2013.

4. The Authorised Share Capital was reclassified and subsequently clause V substituted vide Ordinary Resolution passed by the Shareholders of the company at their Extra ordinary General Meeting held on Monday,19^th September 2011 at the Registered Office of the Company.

AFTER 30.09.2013

Authorised Capital : Rs. 340.000 Millions

Issued Subscribed & Paid-up Capital : Rs. 101.782 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013 (9 Months)	30.06.2012 (12 Months)	30.06.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	116.975	128.062	105.888
(b) Reserves & Surplus	873.846	857.493	801.992
(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)	990.821	985.555	907.880
(3) Non-Current Liabilities
(a) long-term borrowings	209.588	177.065	233.575
(b) Deferred tax liabilities (Net)	43.096	45.757	36.474
(c) Other long term liabilities	15.960	18.554	16.328
(d) long-term provisions	7.964	7.204	10.561
Total Non-current Liabilities (3)	276.608	248.580	296.938
(4) Current Liabilities
(a) Short term borrowings	680.204	619.413	399.848
(b) Trade payables	654.211	427.260	289.317
(c) Other current liabilities	189.077	228.936	200.203
(d) Short-term provisions	7.037	15.890	11.207
Total Current Liabilities (4)	1530.529	1291.499	900.575
TOTAL	2797.958	2525.634	2105.393
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	829.195	756.893	740.886
(ii) Intangible Assets	0.131	0.151	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	1.000	1.000	0.00
(b) Non-current Investments	0.422	0.422	0.101
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	40.598	57.882	48.474
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	871.346	816.348	789.461
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	635.800	448.122	591.201
(c) Trade receivables	1180.792	1189.181	669.489
(d) Cash and cash equivalents	58.956	27.572	17.524
(e) Short-term loans and advances	48.375	43.536	36.350
(f) Other current assets	2.689	0.875	1.368
Total Current Assets	1926.612	1709.286	1315.932
TOTAL	2797.958	2525.634	2105.393

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013 (9 Months)	30.06.2012 (12 Months)	30.06.2011
	SALES
		Income	2050.999	2822.427	2491.497
		Other Income	2.779	0.901	1.391
		TOTAL	2053.778	2823.328	2492.888
Less	EXPENSES
		Cost of materials consumed	1818.937	2038.847	1976.448
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(184.047)	155.480	(49.051)
		Employee benefits expense	82.239	101.602	91.403
		Other expenses	136.244	190.666	168.376
		Exceptional items	0.000	0.000	44.350
		TOTAL	1853.373	2486.595	2231.526
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		200.405	336.733	261.362
Less	FINANCIAL EXPENSES		133.047	192.230	163.612
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		67.358	144.503	97.750
Less/ Add	DEPRECIATION/ AMORTISATION		33.270	42.644	39.248
	PROFIT/ (LOSS) BEFORE TAX		34.088	101.859	58.502
Less	TAX		11.272	29.862	30.699
	PROFIT/ (LOSS) AFTER TAX		22.816	71.997	27.803
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		202.497	164.768	155.417
Less	APPROPRIATIONS
		Interim dividend	--	--	--
		Dividends proposed to be distributed to equity shareholders (Rs. 0.50/- per share)	4.068	12.205	8.136
		Dividends proposed to be distributed to preference shareholders (Rs. 0.40 /-per share)	0.736	0.980	0.980
		Tax on dividend	0.660	1.980	1.320
		Transfer to 4% Preference Share Capital Redemption Reserve	1.837	2.450	2.450
		Transfer to 1% Preference Share Capital Redemption Reserve	11.087	11.087	--
		Transfer to Bonds Redemption Reserve	4.174	5.566	5.566
		Transfer General Reserve	--	--	--
	BALANCE CARRIED TO THE B/S		202.751	202.497	164.768
	EARNINGS IN FOREIGN CURRENCY
		Travelling	0.637	1.837	1.000
	TOTAL EARNINGS		0.637	1.837	1.000
	IMPORTS
		Raw Materials including Spares	54.797	40.121	6.577
	TOTAL IMPORTS		54.797	40.121	6.577
	Earnings / (Loss) Per Share (Rs.)		2.71	8.73	8.75

Expected Sales (2013-14) : Rs.3000.000 Millions.

The above information has been parted by Mr. Anand Bane.

QUARTERLY RESULTS

Particulars	30.06.2013	30.09.2013
	1^st Quarter	2^nd Quarter
Net Sales	692.500	400.400
Total Expenditure	631.100	394.900
PBIDT (Excl OI)	61.400	5.500
Other Income	0.000	0.000
Operating Profit	61.400	5.500
Interest	42.400	48.500
Exceptional Items	0.000	0.000
PBDT	19.000	(43.000)
Depreciation	12.000	12.400
Profit Before Tax	6.900	(55.400)
Tax	2.300	0.000
Provisions and contingencies	0.000	0.000
Profit After Tax	4.600	(55.400)
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	4.600	(55.400)

KEY RATIOS

PARTICULARS		31.03.2013 (9 Months)	30.06.2012 (12 Months)	30.06.2011
PAT / Total Income	(%)	1.11	2.55	1.12
Net Profit Margin (PBT/Sales)	(%)	1.66	3.61	2.35
Return on Total Assets (PBT/Total Assets}	(%)	1.22	4.03	2.34
Return on Investment (ROI) (PBT/Networth)		0.03	0.10	0.06
Debt Equity Ratio (Total Debt/Networth)		0.90	0.81	0.70
Current Ratio (Current Asset/Current Liability)		1.26	1.32	1.46

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF CURRENT MATURITIES OF LONG TERM DEBT:

Particulars	31.03.2013 (9 Months)	30.06.2012 (12 Months)	30.06.2011
	Rs. In Millions
Current Maturities of Long Term Debt	87.567	109.253	90.516

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	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	Yes
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)	Yes
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	Yes
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

LITIGATION DETAILS

HIGH COURT OF GUJARAT

STAMP NUMBER NO. 1965 OF 2012

Status: PENDING CCIN No: 001087201201965

Last Listing Date: 03/10/2012

Coram: - ADDITIONAL REGISTRAR ( JUDICIAL)

S.NO.

Name of the Petitioner

Advocate On Record

1

COMMISSIONER

MR GAURANG H BHATT for: null 1

S.NO.

Name of the Respondant

Advocate On Record

1

IMP POWERS LIMITED

Presented On : 18.09.2012 Registered On : 18.09.2012

Bench Category : DIVISION BENCH District : VALSAD

Case Originated From: THROUGH ADVOCATE Listed : 0 times

Stage Name : OFFICE OBJECTION (FILING STAGE)

OFFICE OBJECTION

Filing Stage Filing Stage

WHETHER THE MEMO OF PETITION/APPEAL IS SIGNED ? WHETHER DULY SIGNED AND AFFIRMED AFFIDAVIT IN SUPPORT IS FILED ? WHETHER COPIES ARE LEGIBLE AND WHETHER TYPED COPIES OF HAND WRITTEN ANNEXURES FILED ? WHETHER THE ORGINAL POSITIONS OF THE PARTIES STATED ?

Classification	DB - OJ - TAX APPEAL - CENTRAL EXCISE ACT, 1944 - UNDER SECTION 35G
Act	CENTRAL EXCISES AND SALT ACT, 1944

OTHER FORUMS

S.No	CASEDETAILS	TRIBUNAL REFERRENCE	ORDER PASSED BY	JUDGEMENT DATE	PLACE
1.	A/400/WZB/2012	CUSTOMS EXCISE & SERVICE TAX APPELLATE TRIBUNAL AHMEDABAD WEST ZONAL BENCH AHMEDABAD	TECHNICAL MEMBER AND JUDICIAL MEMBER	22/03/2012	VALSAD

OFFICE DETAILS

S. No

Filing Date

Document Name

Advocate Name

Court Fee on Document

Document Details

1

18/09/2012

CERTIFIED COPY

MR GAURANG H BHATT ADVOCATE
for PETITIONER(s) 1

4

-

2

18/09/2012

MEMO OF APPEAL/PETITION/SUIT

MR GAURANG H BHATT ADVOCATE
for PETITIONER(s) 1

50

-

UNSECURED LOANS

PARTICULAR	31.03.2013 (9 Months)	30.06.2012 (12 Months)
LONG TERM BORROWINGS	(Rs. In Millions)
Loans and advances from related parties	30.300	0.000
TOTAL	30.300	0.000

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (S
1	10451389	16/09/2013	405,000,000.00	AXIS BANK LIMITED	AXIS HOUSE, C-2, WADIA INTERNATIONAL CENTRE, PAN DURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	B85887024
2	10447142	28/08/2013	50,000,000.00	IDBI BANK LIMITED	224 'A' WING, 2ND FLOOR, NARIMAN POINT,, MUMBAI, MAHARASHTRA - 400021, INDIA	B84073543
3	10446642	21/08/2013	521,400,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH (ADVANCES), N.G.N. VAIDHYA MARG, BANK STREET, HORNIMAN CIRCLE, FORT, MUMBAI, MA HARASHTRA - 400001, INDIA	B83815282
4	10447316	31/07/2013	5,275,000.00	KARNATAKA BANK LIMITED	294-A, HAROON HOUSE, PERIN NARIMAN STREET, BEHIND RBI, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	B84177971
5	10445619	26/07/2013	52,800,000.00	IDBI BANK LIMITED	224 'A' WING, 2ND FLOOR, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	B83346890
6	10423598	11/03/2013	665,344,000.00	STATE BANK OF HYDERABAD	11-C, MITTAL TOWER, 210, 1ST FLOOR, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	B74372608
7	10414573	05/03/2013	10,000,000.00	BANK OF INDIA	MUMBAI MID-CORPORATE, MEZZANINE FLOOR, 70/80, M. G. ROAD, MUMBAI, MAHARASHTRA - 400001, INDIA	B71737126
8	10409858	04/02/2013	90,000,000.00	STATE BANK OF HYDERABAD	11-C, MITTAL TOWER, 210, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	B70031802
9	10352077	17/03/2012	80,600,000.00	IDBI BANK LTD.	224-A, MITTAL COURT, A WING, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	B38341533
10	10353341	17/03/2012	575,000,000.00	STATE BANK OF HYDERABAD	11-C, MITTAL TOWER, 210, 1ST FLOOR, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	B38823076
11	10335271	11/01/2012	350,000,000.00	AXIS BANK LIMITED	AXIS HOUSE, GRD.FLR.,BOMBAY DYEING MILLS COMPOUND, P. B. MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	B31990625
12	10336364	10/01/2012	30,000,000.00	BANK OF INDIA	MUMBAI MID CORPORATE, 70/80, M.G. ROAD, BANK OF INDIA BUILDING, MEZZANINE FLOOR, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	B32469744
13	10306949	09/08/2011	50,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH (ADVANCES), N.G.N. VAIDYA MARG, HORNIMAN CIRCLE, FORT, MUMBAI, MAHARASHTRA - 400 001, INDIA	B20856944
14	10302639	06/08/2011	20,000,000.00	BANK OF INDIA	MUMBAI MID CORPORATE, 70/80, M.G. ROAD,, BANK OF INDIA BUILDING, MEZZANINE FLOOR, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	B18971135
15	10285678	06/04/2011	35,300,000.00	IDBI BANK LIMITED	224-A, MITTAL COURT, A WING, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	B12253639
16	10278215	17/03/2011	437,500,000.00	STATE BANK OF HYDERABAD	11-C, MITTAL TOWER, 210, 1ST FLOOR, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	B09707530
17	10275567	10/02/2011	10,000,000.00	BANK OF INDIA	MCBB, 70-80 M.G.ROAD, FORT, MUMBAI, MAHARASHTRA 400023, INDIA	B08572133
18	10250695	01/11/2010	50,000,000.00	STATE BANK OF HYDERABAD	11-C, MITTAL TOWERS, 1ST FLOOR, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	A99381659
19	10228634	24/06/2010	25,000,000.00	BANK OF INDIA LIMITED	MCBB, 70-80 M.G. ROAD, FORT, MUMBAI, MAHARASHTRA - 400023, INDIA	A89764344
20	10175805	14/09/2010 *	100,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, HORNIMAN CIRCLE, N.G.N. VAIDYA MARG, FORT, MUMBAI, MAHARASHTRA - 400021, INDIA	A97946727
21	10172343	14/09/2010 *	50,000,000.00	BANK OF INDIA	MCBB, 70-80, M.G ROAD,, FORT, MUMBAI, MAHARASHTRA - 400023, INDIA	A98020092
22	10173178	14/07/2009	23,400,000.00	BANK OF INDIA	MCBB,70-80, M.G.ROAD, FORT, MUMBAI, MAHARASHTRA - 400023, INDIA	A68450493
23	10163790	18/06/2009	180,900,000.00	KARNATAKA BANK LTD.	FORT BRANCH, 294-A, HAROON HOUSE, PERIN NARIMAN STREET, BEHIND RBI, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	A64570716
24	10167413	14/09/2010 *	100,000,000.00	STATE BANK OF HYDERABAD	11-C, MITTAL TOWERS, NARIMAN POINT, MUMBAI, MAHA RASHTRA - 400021, INDIA	A97947170
25	10160707	11/05/2009	20,000,000.00	BANK OF INDIA	MCBB,70-80, M.G.ROAD, FORT, MUMBAI, MAHARASHTRA - 400023, INDIA	A63092654
26	10161874	23/04/2009	6,600,000.00	SBI COMMERCIAL & INTERNATIONAL BANK LTD	MAKER CHAMBERS III, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	A62230925
27	10148663	03/03/2009	82,900,000.00	IDBI BANK	224, 'A' WING MITTAL COURT, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	A59238303
28	10100372	25/03/2008	78,100,000.00	STATE BANK OF SAURASHTRA	COMMERCIAL BRANCH, GRESHAM HOUSE SIR, P.M .ROAD , FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	A37249141
29	10100876	12/03/2008	297,500,000.00	STATEABKOFHYDERABAD	11-C,MITTAL TOWER, 11-C/MITTAL TOWER,210, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	A37737582
30	10063116	28/06/2007	790,000.00	KARNATAKA BANK LIMITED	HAROON HOUSE, PERIN NARIMAN STREET, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	A18765420
31	10039817	17/02/2007	26,300,000.00	STATE BANK OF SAURASHTRA	COMMERCIAL BRANCH, 1ST FLOOR, 17/18A,, NARIMAN BH AWAN, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	A11798451
32	10090241	22/01/2007	7,000,000.00	STATE BANK OF HYDERABAD	MITTAL TOWERS, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	A12120788
33	10026375	28/11/2006	10,000,000.00	KARNATAKA BANK LTD.	KARNATAKA BANK LIMITED,REGD. AND HEAD OFFICE, P.B .NO.599, MAHAVEERA CIRCLE, KANKANADY,MANGALORE, KARNATAKA - 575002, INDIA	A06505788
34	80061671	14/09/2010 *	50,000,000.00	STRESSED ASSETS STABILISATION FUND	WTC COMPLEX, 10TH FLOOR, IDBI TOWERS, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B06888119
35	10020578	27/03/2006	88,533,000.00	POWER FINANCE CORPORATION LIMITED	CHANDRALOK BUILDING36, JANPATH, NEW DELHI, DELHI - 110001, INDIA	A02306025
36	80061420	14/09/2010 *	50,000,000.00	STRESSED ASSETS STABILISATION FUND	WTC COMPLEX,10TH FLOOR, IDBI TOWERS, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B07733280
37	80061419	14/09/2010 *	50,000,000.00	STRESSED ASSETS STABILISATION FUND	WTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B06892442
38	90240389	24/08/2012 *	2,300,000,000.00	STATE BANK OF HYDERABAD	11-C, MITTAL TOWER,, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	B59817429

* Date of charge modification

YEAR IN RETROSPECT:

The Company has sustained its growth level and its performance was encouraging when viewed against the backdrop of the extremely challenging business context in which it was achieved, namely, the continued economic slowdown, weakening of rupee against the dollar leading to costlier imports, intense competition in the domestic segment, delay in getting clearance and completion of projects, government’s inability to meet the targeted power generation plans.

The Company manufactured 5759 MVA in nine months period of the year and achieved a total income of Rs 2053.800 millions. Despite the higher production compared to last year, the revenue was not in line with increase in production due to low realization per MVA. Profit after Tax (PAT) stood at Rs. 22.800 millions, due to stiff competition on account of over capacity in transformer industry in Indian Market.

The Company has maintained its Leadership position in the 132 and 220 KW segment and it is amongst the top 7 manufacturers in two segments.

The Company has set up state-of-the-art manufacturing facility to manufacture transformers upto 400 KV class and has entered into the elite league of manufacturers of 400 KV transformers in the country.

The Company has started a separate repair division segment during the year, whereby it renders repairing facilities for high class of transformers. Considering the wide segment of customer base, repair division has huge potential as it successfully executed orders from Haryana and Punjab electricity utilities.

ACHIEVEMENTS:

Subject has successfully manufactured and dispatched 315 MVA, 400/220 KV Class Transformer to MSETCL from its state-of-the-art manufacturing plant at Silvassa.

IMP’s in-house testing facility is accredited by NABL i.e. National Accredited Board for Testing and Calibration Laboratories which is an autonomous body under the aegis of Department of Science and Technology, Government of India. This is the highest accreditation for testing in the country.”

The Company has secured single largest prestigious order worth Rs. 1010.000 millions from RRVPNL. The Company was the first transformer manufacturing Company in India to obtain ISO 9001:2008 certification and is also ISO 14001:2004 certified.

FUTURE GROWTH PROSPECTS:

As per the XII five year plans, 85,000 MW capacity addition in power generation is planned by the end of the year 2017. Consequently huge requirement in the power transformation capacity would be required coupled with significant replacement demand of existing transformers as good population of the existing transformers has completed 20 25 years in field. The Company is well poised to clinch the opportunity with high production capacity and state-of the-art manufacturing plant to produce upto 400 kV class transformers. The Company has made a paradigm shift of focus to SEB’s, from EPC and is now an approved vendor with all SEBs, thereby actively bidding for major tenders and relying on its established credentials to win tenders.

In a bid to meet the high export demand, wherein the exports for Electrical Equipments are less than 1% of the global trade for Electrical Equipment, the Company’s major thrust is on exports by increasing its market presence across in countries like Africa and the Middle East, tying up with several International EPC players by designing and manufacturing quality products, improving productivity, maintaining costs and meeting global standards through efficient performance.

The Company’s relentless focus on quality, innovation and differentiation backed by deep consumer insights, world-class R and D and an efficient and responsive marketing chain will further strengthen its leadership position in the Indian and International transformer industry.

SUBSIDIARY COMPANY:

IMP Energy Limited (IEL), a Subsidiary Company of IMP Powers Limited, incorporated on 3rd February 2012, is acting as a Project Management Consultancy (P.M.C.) with a clear vision of providing excellence and perfection to explore emerging opportunities in mini and small Hydro Power Projects up to 25 MW.

Primary focus of IEL has been Kargil, Leh Ladak in the region of J and K which after extensive research shows a completely untapped potential. It also operates in the niche area of renewable energy sector and has a great future ahead as India moves on from the traditional power sources available.

The Directors have pleasure to announce that, in a year IEL has an existing unexecuted order book of Rs. 710.000 millions as on date from Ladakh Renewable Energy Development Agency (LREDA) and Kargil Renewable Energy Development Agency (KREDA)

MANAGEMENT DISCUSSION AND ANALYSIS

ECONOMIC OVERVIEW:

Global economic scenario remained turbulent in the year . The uncertainties continued to remain in the current year as well. The India’s GDP growth rate decelerated for the second year in succession. It was 5% in 2012-13 as against 6.2% in 2011-12, the lowest in the last decade. The growth in the Index of Industrial Production (IIP) also witnessed a slowdown to 0.9% largely due to infrastructure and input constraints.

The government is trying to encourage growth by hinting on at industrialists to increase investments. However, the current state of uncertainties, dull stock market, the investment climate in the country is restricting corporates from making investments in India. The Reserve Bank of India’s recent macro-economic outlook acknowledges that growth has been hobbled by structural bottlenecks on the supply side. Thus impetus on the next phase of reforms by Government is significant and it will be essential that such reforms are effectively implemented to overcome the challenges that Indian economy is currently undergoing.

TRANSFORMER INDUSTRY IN INDIA:

Transformer forms an integral part of the electrical industry which constitute almost 12% of the electrical equipment industry. As they play a critical role in setting up power grids, transformers are indispensible for any country’s electrical sector.

The Indian transformer industry is more than five decades old, hence mature. Domestic manufacturers have developed capabilities to manufacture all types of equipment to meet the country’s demand for transformers upto 800 kV and going upto 1200 kV. The industry enjoys a good reputation in terms of quality price and delivery in the domestic as well as overseas markets. The growth of transformer industry generally depends upon the planned capacity addition to power generation, transmission and distribution network in the country. India’s power generation of installed capacity at the end of XI Five Year plan (March 31, 2012) stood at approx. 200000 MVA. Of the total, approx. 78,000 MW of power generation capacity addition was planned during the XI Five Year plan period, which was subsequently revised to 62000 MW, of which only 55000 MW of capacity was added. Acute fuel shortage, high coal prices and delay in commissioning of new units, affected capacity addition plans.

The addition of approximately 85,000 MW is planned in XII five-year plan by the year 2017. As a result of this, huge requirement in power transformation capacity would be required. Also, a good population of transformers has completed more than 20- 25 years in field and these will be required to be replaced by new transformers in near future. It is estimated that total turnover of transformer industry is likely to be over Rs. 12,000 Crores. The installed capacity of the Indian Transformer industry in the organized and unorganized sector all together is about 4,00,000 MVA ranging from 5 KVA to 500 MVA and voltage range from 1.1 KV to 1200 KV. Very recently 1200 KV technology has been developed and absorbed by the Indian industry. 1200 KV single phase transformers have been manufactured and are currently installed/being installed at 1200 KV BINA Sub-Station which is managed by PGCIL.

OPPORTUNITY IN EXPORTS:

The demand of Indian products in global market is quite encouraging despite a slowdown resulting in 37% increase in the exports. The primary reason for this is that there are a lot of projects and electrification procedures going on, especially in Africa that are funded by World Bank. There is immense scope for the Indian electrical products market to boost its exports. The global electricity equipments market stands at around $ 450 billion USD of which India’s share is barely $ 4 billion USD which is less than 1 per cent. Thus, a huge scope is in the offering for Indian domestic players in exports. Unless Indian players are able to achieve the mix of 70% for domestic demand and 30 per cent for exports it will not be able to achieve significant place in the world market. Given the competitive advantages, there is a potential to grow the share of global exports from 1% to 5%.

COMPANY’S POSITIONING:

IMP today is an established name in HV, EHV and Power Transformers, up to 315 MVA in 400 kV class. IMP is a recognized supplier to all SEB’s, major EPC contractors and private customers in the country and exports to 27 countries worldwide. Most importantly today IMP is a 300 Crore company growing at 25% CAGR since last 7 years and has consistent vision to continue doing the same in the years to follow. IMP’s infrastructure today boasts of with the state-of-the-art manufacturing facility at Silvassa which features world class technology and precision machinery. IMP has a total installed capacity of 12000 MVA per annum.

FIXED ASSETS

Ø Free Hold

Ø Building and HO Building

Ø Plant and Machineries

Ø Dies and Jigs

Ø Electrical Installation

Ø Air Conditioning Equipments

Ø Furniture and Fixtures

Ø Office Equipments

Ø Cars and Vehicles

Ø Computer

UNAUDITED FINANCIAL RESULT FOR THE QUARTER AND HALF YEAR ENDED 30 SEPTEMBER 2013

(Rs. In Millions)

	Quarter Ended		Half Year Ended
PARTICULARS	30.09.2013	30.06.2013	30.09.2013
01. Gross Sales / Income from Operations	424.907	768.740	1193.647
Less : Excise Duty	25.010	76.457	101.467
Net Sales / Income from Operations	399.897	692.283	1092.180
02. Other Operating Income	0.484	0.184	0.668
03. TOTAL INCOME FROM OPERATIONS	400.381	692.467	1092.848
04. EXPENDITURE
a) Cost of materials consumed	477.558	503.085	980.643
b) Purchases of stock-in-trade	--	--	--
c) Changes in inventories of finished goods, work-in- progress and stock-in-trade	(138.710)	50.128	(88.582)
d) Employee benefits expense	27.844	28.675	56.519
e) Depreciation and amortization expense	12.425	12.044	24.469
f) Other Expenses	28.228	49.182	77.410
TOTAL EXPENSES	407.345	643.114	1050.459
05. Profit / (Loss) from Operations before other income, finance costs and exceptional items	(6.964)	49.353	42.389
06. Other Income	--	--	--
07. Profit Before Finance Costs & Exceptional Items	(6.964)	49.353	42.389
08. Finance costs	48.462	42.430	42.389
09. Profit after Finance Cost but before exceptional items	(55.426)	6.923	(48.503)
10. Exceptional Items	--	--	--
09. Profit / (Loss) from ordinary activities before tax	(55.426)	6.923	(48.503)
11. Tax expense, including deferred tax	--	2.284	2.284
12. Net Profit / Loss (-) from ordinary activities after tax	(55.426)	4.639	(50.787)
13. Paid-up Equity Share Capital (each share of Rs. 10/- face value)	81.366	81.366	81.366
14. Reserves excluding revaluation reserves as per Balance Sheet of previous accounting year	--	--	--
15. Earnings per share – Basic and diluted EPS before and after extraordinary item (Rs.) – non-annualized	(6.81)	0.57	(6.24)

A	PARTICULARS OF SHAREHOLDING
1	Public shareholding
	a.	Number of shares	3988360	3993020	3988360
	b.	Percentage of shareholding	49.02	49.08	49.02
2	Promoters and promoter group shareholding
	a.	Pledged/Encumbered
	Number of shares		2621588	1729023	2621588
		Percentage of shares (as a % of the total shareholding of promoter and promoter group)	63.20	41.73	63.20
		Percentage of shares (as a % of the total share capital of the Company)	32.22	21.25	32.22
	b.	Non-encumbered
	Number of shares		1526651	2414520	1526615
		Percentage of shares (as a % of the total shareholding of promoter and promoter group)	36.80	58.27	69.91
		Percentage of shares (as a % of the total share capital of the Company)	18.76	29.67	18.76

NOTE:

1. The above results have been reviewed by the committee and approved by the board of directors in its meeting held on 13^th November, 2013. The statutory additors have carried out a limited review of the result.

2. The company is primarily engaged in the business of electrical products like power and distribution transformer and hydro projects, which together constitute a single segment within power sector.

STATEMENT OF ASSETS AND LIABILITIES

(Rs. In Millions)

PARTICULARS	30.09.2013
	Un-audited
I. Equity and liabilities
Shareholders' funds
Share capital	101.804
Reserves and surplus	822.393
Total	924.197
Share Application Money	--
Minority Intrest	--
Non-current liabilities
Long-term borrowings	200.552
Deferred tax liabilities (net)	43.096
Other long term liabilities	13.273
Long-term provisions	7.586
Total	264.507
Current liabilities
Short-term borrowings	790.718
Trade payables	630.608
Other current liabilities	170.841
Short-term provisions	6.176
Total	1598.343
TOTAL EQUITY AND LIABILITIES	2787.047
II. Assets
Non-current assets
Fixed assets
Tangible assets	836.925
Intangible assets	0.149
Intangible assets under development	1.000
Non-current investments	6.515
Long-term loans and advances	37.540
Total	882.129
Current assets
Current investments	--
Inventories	712.154
Trade receivables	1094.941
Cash and bank balances	60.731
Short-term loans and advances	34.403
Other current assets	2.689
Total	1904.918
TOTAL ASSETS	2787.047

Note:

5. Last year the accounting period of the company was for nine months i.e. July to March 13, hence half year corresponding period for the last year is reported as 31 st December 2012.

6. Figures of the previous periods and year have been regrouped / reclassified where ever considered necessary

7. The company has order book of Rs. 3540.000 millions as on date.

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.61.35
UK Pound	1	Rs.100.21
Euro	1	Rs.83.52

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

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

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