MIRA INFORM REPORT

MIRA INFORM REPORT

Unit

Report Date :

04.09.2014

IDENTIFICATION DETAILS

Name :	EMPIRE PHOTOVOLTAIC SYSTEMS PRIVATE LIMITED

Registered Office :	Sy. No. 114/P, Plot No. # 7/A1, Fab City, Srinagar Village, Maheshwaram Mandal, Ranga Reddy - 501359 Telangana

Country :	India

Financials (as on) :	31.03.2013

Date of Incorporation :	30.09.2010

Com. Reg. No.:	070659

Capital Investment / Paid-up Capital :	Rs.90.375 Millions

CIN No.: [Company Identification No.]	U31908TG2010PTC070659

PAN No.: [Permanent Account No.]	AACCE6024D

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer of Solar Photovoltaic Module

No. of Employees :	35 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (15)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate

Payment Behaviour :	Slow and delayed

Litigation :	Clear

Comments :	Subject is an established company having a moderate track record. The rating takes into consideration delay in debt servicing due to weak liquidity position of the company. However, business is active. Payments are reported to be slow and delayed. The company can be considered for business dealings on safe and secured trade terms and conditions. On 2 June 2014, Telangana became the 29th state of India, consisting of the ten north-western districts of Andhra Pradesh with Hyderabad as its capital. The city of Hyderabad will continue to serve as the joint capital for Andhra Pradesh and the successor state of Telengana for a period of ten years. As a result of which both the state have their own registrar of companies offices and the said subject is now transferred from Andhra Pradesh ROC to Telangana ROC.

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

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	CRISIL
Rating	Long Term Rating = D
Rating Explanation	Expected to be in default
Date	03.01.2014

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. Sunil
Designation :	Account Manager Sales
Contact No.:	91-9963993804
Date :	30.09.2014

LOCATIONS

Registered Office / Factory :	Sy. No. 114/P, Plot No. # 7/A1, Fab City, Srinagar Village, Maheshwaram Mandal, Ranga Reddy – 501359, Telangana, India
Tel. No.:	Not Available
Mobile No.:	91-9963993804 (Mr. Sunil)
Fax No.:	Not Available
E-Mail :	kiranch@epssolar.com
Website :	http://epssolar.com

Branch Office :	Plot No:462,H.No-2-56/33/22A, Jayasudha Heights,100 Feed Road, Ayyappa Society, Hitech City, Hyderabad - 500081, Telangana, India
Tel. No.:	91-40-65817799, 65817792 / 93

DIRECTORS

As on

Name :
Designation :
Address :
Date of Birth/Age :
Qualification :
Experience :
Date of Appointment :
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PAN No.:
Passport No.:
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Voter ID No.:

KEY EXECUTIVES

Name :	Mr. Sunil
Designation :	Account Manager Sales
Address :
Date of Birth/Age :
Qualification :
Experience :
Date of Appointment :

Name :
Designation :
Address :
Date of Birth/Age :
Qualification :
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on

Names of Shareholders		No. of Shares
Anil Kumar Lingutla		1228999
Radhakrishna Rao Ponnaganti		476001
Venkata Ramana Lingutla		250000
Ravi Kumar Mandalapu		2202500
Madan Mohan Chava		1500000
Kiran Kumar Chintanippu		1000000
Srinivasa Rao Doppalapudi		750000
Total		7407500

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

{{{{{ copy & paste graph & table here from excel sheet – shareholding pattern chart }}}}}

BUSINESS DETAILS

Line of Business :	Manufacturer of Solar Photovoltaic Module

Products :

Imports :
Products :	Material and Parts
Countries :	Arabian Countries.

Terms :
Selling :	Advance Payment / Credit (30 / 60 Days)

Purchasing :	Advance Payment / Credit (30 / 60 Days)

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production

GENERAL INFORMATION

Suppliers :

Customers :

Wholesalers, Retailers and End Users

No. of Employees :

35 (Approximately)

Bankers :

State Bank of India, Royal Arcadia, Balkampet Road, Sanjeeva Reddy Nagar, Hyderabad - 500038, Andhra Pradesh, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Long-term borrowings
Rupee term loans from banks	127.500	28.607
Short-term borrowings
Rupee term loans from banks	35.975	0.000
Total	163.475	28.607


Banking Relations :	---

Auditors :
Name :	Tukaram and Company Chartered Accountants
Address :	3-6-69/209, Venkatrama Towers, Basheerbagh, Hyderabad – 500029, Telangana ,India
Tel. No.:	91-40-23221536 / 23228785 / 23228086
Mobile No.:
Fax No.:
E-Mail :	91-40-23221474
PAN No.:	AAAFT9960E

Memberships :

Collaborators :

Associates/Subsidiaries :

CAPITAL STRUCTURE

As on

Authorised Capital :

No. of Shares	Type	Value	Amount

8250000	Equity Shares	Rs.10/- each	Rs.82.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

7407500	Equity Shares	Rs.10/- each	Rs.74.075 Millions

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount

12250000	Equity Shares	Rs.10/- each	Rs.122.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

9037500	Equity Shares	Rs.10/- each	Rs.90.375 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	90.375	74.075	0.100
(b) Reserves & Surplus	(17.167)	0.000	0.000
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	9.637	6.706	14.417
Total Shareholders’ Funds (1) + (2)	82.845	80.781	14.517

(3) Non-Current Liabilities
(a) long-term borrowings	127.500	28.607	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	127.500	28.607	0.000

(4) Current Liabilities
(a) Short term borrowings	35.975	0.000	0.000
(b) Trade payables	14.025	7.618	0.027
(c) Other current liabilities	14.799	1.760	0.000
(d) Short-term provisions	0.650	0.506	0.000
Total Current Liabilities (4)	65.449	9.884	0.027

TOTAL	275.794	119.272	14.544

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	209.176	18.300	1.698
(ii) Intangible Assets	2.463	2.068	0.000
(iii) Capital work-in-progress	0.007	53.745	0.000
(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	8.108	25.358	6.040
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	219.754	99.471	7.738

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	29.675	2.021	0.000
(c) Trade receivables	12.379	0.000	0.000
(d) Cash and cash equivalents	13.820	13.864	5.957
(e) Short-term loans and advances	0.000	0.000	0.000
(f) Other current assets	0.166	3.916	0.849
Total Current Assets	56.040	19.801	6.806

TOTAL	275.794	119.272	14.544

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income
		Other Income
		TOTAL (A)

Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)

Less	FINANCIAL EXPENSES (D)

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)

Less/ Add	DEPRECIATION/ AMORTISATION (F)

	PROFIT BEFORE TAX (E-F) (G)

Less	TAX (H)

	PROFIT AFTER TAX (G-H) (I)

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

Less	APPROPRIATIONS
		Transfer to General Reserve
		Dividend
		Tax on Dividend
	BALANCE CARRIED TO THE B/S

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings
		Commission Earnings
		Other Earnings
	TOTAL EARNINGS

	IMPORTS
		Raw Materials	38.700
		Plant and Machinery	85.500
		Capital Goods
		Others
	TOTAL IMPORTS

	Earnings Per Share (Rs.)

QUARTERLY / SUMMARISED RESULTS

PARTICULARS

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)

Net Profit Margin (PBT/Sales)	(%)

Return on Total Assets (PBT/Total Assets}	(%)

Return on Investment (ROI) (PBT/Networth)

Debt Equity Ratio (Total Debt /Networth)

Current Ratio (Current Asset/Current Liability)

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

{{{{{ copy & paste table & graph here from excel sheet debt equity section }}}}}

YEAR-ON-YEAR GROWTH

{{{{{ copy & paste table & graph here from excel sheet year-on-year growth section }}}}}

NET PROFIT MARGIN

{{{{{ copy & paste table & graph here from excel sheet net profit margin section }}}}}

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	(Yes / No)
2]	Locality of the firm	(Yes / No)
3]	Constitutions of the firm	(Yes / No)
4]	Premises details	(Yes / No)
5]	Type of Business	(Yes / No)
6]	Line of Business	(Yes / No)
7]	Promoter's background	(Yes / No)
8]	No. of employees	(Yes / No)
9]	Name of person contacted	(Yes / No)
10]	Designation of contact person	(Yes / No)
11]	Turnover of firm for last three years	(Yes / No)
12]	Profitability for last three years	(Yes / No)
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	(Yes / No)
15]	Capital in the business	(Yes / No)
16]	Details of sister concerns	(Yes / No)
17]	Major suppliers	(Yes / No)
18]	Major customers	(Yes / No)
19]	Payments terms	(Yes / No)
20]	Export / Import details (if applicable)	(Yes / No)
721]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	(Yes / No)
24]	Banking facility details	(Yes / No)
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	(Yes / No)
28]	Incorporation details, if applicable	(Yes / No)
29]	Last accounts filed at ROC	(Yes / No)
30]	Major Shareholders, if available	(Yes / No)
31]	Date of Birth of Proprietor/Partner/Director, if available	(Yes / No)
32]	PAN of Proprietor/Partner/Director, if available	(Yes / No)
33]	Voter ID No of Proprietor/Partner/Director, if available	(Yes / No)
34]	External Agency Rating, if available	(Yes / No)

INDEX OF CHARGES

* Date of charge modification

INDEX OF CHARGES: NO CHARGES EXIST FOR THE COMPANY

FIXED ASSETS

· Furniture and fixtures

· Land

· Buildings

· Plant and equipment

· Vehicles

· Office equipment

· Computer equipments

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.
UK Pound	1	Rs.
Euro	1	Rs.

INFORMATION DETAILS

Information Gathered by :

Analysis Done by :

Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		15

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.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)