MIRA INFORM REPORT

Report No. :	315545
Report Date :	07.04.2015

IDENTIFICATION DETAILS

Name :	MAHASHAKTI ENERGY LIMITED (w.e.f. 03.11.2010)
Formerly Known As :	MAHASHAKTI ENERGY PRIVATE LIMITED (w.e.f. 04.10.2010) MAHASHAKTI CONDUCTORS PRIVATE LIMITED
Registered Office :	A-8, Industrial Area, Focal Point, Dabiwali Road, Bathinda – 151001, Punjab
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	17.08.1994
Com. Reg. No.:	16-014935
Capital Investment / Paid-up Capital :	Rs.43.054 Million
CIN No.: [Company Identification No.]	U28999PB1994PLC014935
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AABCM4598D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Importer of unit with ACSR, AAC Conductors, Cables and Double Paper Covered Wire (DPC), Integration and Diversification Product.
No. of Employees :	12 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The rating is constrained on account of decreased sales turnover and profitability during year under review. However, trade relations are reported to be fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealings with some caution.

NOTES :

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

ECGC Country Risk Classification List – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE RATING
Rating	Long term rating = BB
Rating Explanation	Moderate risk of default.
Date	February 6, 2014

Rating Agency Name	CARE RATING
Rating	Short term rating = A4
Rating Explanation	Minimal of safety and very high credit risk.
Date	February 6, 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. Karan Kansal
Designation :	Director
Contact No.:	91-9878507000
Date :	03.04.2015

LOCATIONS

Registered Office / Factory :	A-8, Industrial Area, Focal Point, Dabiwali Road, Bathinda – 151001, Punjab, India
Tel. No.:	91-164-2280058 / 2281778
Mobile No.:	91-9878507000 (Mr. Karan Kansal)
Fax No.:	91-164-2282506
E-Mail :	info@mahashaktienergy.com ca_cpr@yahoo.com
Website :	www.mahashaktienergy.com
Location :	Owned

DIRECTORS

As on 30.09.2014

Name :

Mr. Ashok Kumar Kansal

Designation :

Managing Director

Address :

676, Urban Estate, Phase 1, Bathinda – 151001, Punjab, India

Date of Appointment :

17.08.1994

PAN No.:

AFDPK8311G

DIN No.:

00610691

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	U28999PB1994PLC014935	MAHASHAKTI ENERGY LIMITED	Managing director	17/08/1994	17/08/1994	-	Active	NO
2	U51109WB2008PTC122129	MOONCITY VINIMAY PRIVATE LIMITED	Director	10/04/2010	10/04/2010	14/12/2010	Active	NO

Name :

Mr. Karan Kansal

Designation :

Director

Address :

676, Urban Estate, Phase 1, Bathinda – 151001, Punjab, India

Date of Appointment :

15.05.2006

PAN No.:

AHXPK1918R

DIN No.:

00866319

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	U28999PB1994PLC014935	MAHASHAKTI ENERGY LIMITED	Director	15/05/2006	15/05/2006	-	Active	NO
2	U51109WB2008PTC122129	MOONCITY VINIMAY PRIVATE LIMITED	Director	10/04/2010	10/04/2010	14/12/2010	Active	NO

Name :

Mr. Vijay Kumar Kansal

Designation :

Director

Address :

676, Urban Estate, Phase 1, Bathinda – 151001, Punjab, India

Date of Appointment :

22.12.2003

DIN No.:

00610733

MAJOR SHAREHOLDERS

As on 30.09.2014

Names of Shareholders	No. of Shares
Ashok Kumar Kansal	213180
Krishna Devi	400
Sunita	4650
Ajay Kansal	8600
Vipin Kumar	2250
Priti Kansal	3450
Vijay Kansal	27240
Piyush Kansal	1750
Kanta Rani	1100
Rajni Kansal	1700
Des Raj	9900
Shyna	4310
Karan Kansal	93175
D.K Singla	11080
Om Parkash Singla	800
Des Raj Kansal and Sons, India	980
Shilpa Kansal	17670
Mooncity Vinimay Private Limited, India	38200
Total	440435

As on 30.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	9.00
Directors or relatives of Directors	91.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Importer of unit with ACSR, AAC Conductors, Cables and Double Paper Covered Wire (DPC), Integration and Diversification Product.

Products :

Product Description	Item Code No. (ITC Code)
Electrical Transformers, Static Converters	85042340

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Products :

Transformers and Electronic Products

Countries :

• UAE
• Nigeria
• Qatar
• Tanzania

Imports :

Products :

Transformers and Electronic

Countries :

• Netherland
• Germany

Terms :

Selling :

Cash and Cheque

Purchasing :

Cash and Cheque

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Apar Industries Limited
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

• Wholesalers and Retailers

Reference :	Dakshin Haryana Bijli Vitran Nigam, Panchkula, Haryana, India
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

• Aster Private Limited
• GVPR Engineers Limited
• NCC Limited
• Ramky Infrastructure Limited
• GTL Limited

No. of Employees :

12 (Approximately)

Bankers :

• State Bank of India, Kikar Bazar, Bathinda – 151001, Punjab, India
• Canara Bank, Civil Line, Bathinda, Punjab, India

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Term loans from banks	26.216	42.247
Other loans and advances	0.422	0.946
SHORT TERM BORROWING
Working capital loans from banks	636.328	474.722
Total	662.966	517.915

Auditors :
Name :	Chander Raheja and Company Chartered Accountants
Address :	3065, Street No. 4, Power House Road, Bathinda, Punjab, India
PAN No.:	AAGFC9575N
Memberships :	Not Available
Collaborators :	Not Available
Other Related Parties :	Vipin Kumar And Sons, India H R Power Projects Private Limited, India A B C Global Private Limited, India Des Raj Kansal And Sons, India

CAPITAL STRUCTURE

As on 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.100/- each	Rs.50.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
440435	Equity Shares	Rs.100/- each	Rs.44.043 Million

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.100/- each	Rs.50.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
430535	Equity Shares	Rs.100/- each	Rs.43.054 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	43.054	43.054	42.733
(b) Reserves & Surplus	315.053	286.436	224.514
(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)	358.107	329.490	267.247
(3) Non-Current Liabilities
(a) long-term borrowings	78.191	109.803	139.561
(b) Deferred tax liabilities (Net)	1.681	1.918	1.939
(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)	79.872	111.721	141.500
(4) Current Liabilities
(a) Short term borrowings	636.328	474.722	444.067
(b) Trade payables	474.478	672.434	398.955
(c) Other current liabilities	10.928	15.663	21.237
(d) Short-term provisions	15.260	29.200	14.300
Total Current Liabilities (4)	1136.994	1192.019	878.559
TOTAL	1574.973	1633.230	1287.306
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	147.964	163.207	163.620
(ii) Intangible Assets	0.298	0.363	0.483
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	26.370	23.890	1.194
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.020
Total Non-Current Assets	174.632	187.460	165.317
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	676.724	508.884	414.681
(c) Trade receivables	580.897	761.486	465.373
(d) Cash and cash equivalents	99.257	121.733	100.274
(e) Short-term loans and advances	43.463	53.667	141.661
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	1400.341	1445.770	1121.989
TOTAL	1574.973	1633.230	1287.306

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	1449.498	2233.432	1254.698
	Other Income	17.669	39.041	32.795
	TOTAL	1467.167	2272.473	1287.493
Less	EXPENSES
	Cost of Materials Consumed	1104.948	1798.933	1067.186
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(105.047)	(72.045)	(259.972)
	Employees benefits expense	114.952	158.717	206.915
	Other expenses	125.125	142.082	96.137
	TOTAL	1239.978	2027.687	1110.266
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	227.189	244.786	177.227
Less	FINANCIAL EXPENSES	165.076	135.386	121.360
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	62.113	109.400	55.867
Less/ Add	DEPRECIATION/ AMORTISATION	18.529	19.979	7.343
Less/ Add	PRIOR PERIOD ITEMS BEFORE TAX	0.055	0.000	0.000
	PROFIT/ (LOSS) BEFORE TAX	43.639	89.421	48.524
Less	TAX	15.022	29.179	15.808
	PROFIT/ (LOSS) AFTER TAX	28.617	60.242	32.716
	EARNINGS IN FOREIGN CURRENCY	263.749	113.345	103.659
	Earnings / (Loss) Per Share (Rs.)	66.47	139.92	75.99

Expected Sales (2014-2015): Rs.2300.000 Million

The above information has been parted by Mr. Karan Kansal (Director).

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	1.97	2.70	2.61
Operating Profit Margin (PBDIT / Sales)	(%)	15.67	10.96	14.13
Return on Total Assets (PBT/Total Assets}	(%)	2.82	5.56	3.77
Return on Investment (ROI) (PBT/Networth)		0.12	0.27	0.18
Debt Equity Ratio (Total Debt /Networth)		2.00	1.77	2.18
Current Ratio (Current Asset/Current Liability)		1.23	1.21	1.28

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	42.733	43.054	43.054
Reserves & Surplus	224.514	286.436	315.053
Net worth	267.247	329.490	358.107
long-term borrowings	139.561	109.803	78.191
Short term borrowings	444.067	474.722	636.328
Total borrowings	583.628	584.525	714.519
Debt/Equity ratio	2.184	1.774	1.995

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	1254.698	2233.432	1449.498
		78.006	(35.100)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	1254.698	2233.432	1449.498
Profit	32.716	60.242	28.617
	2.61%	2.70%	1.97%

LOCAL AGENCY FURTHER INFORMATION

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

OPERATIONS/WORKING RESULTS

The turnover of the company has been decreased from 2272.474 Million to 1467.169 Million due to non-lifting of material by the Electricity Board. The export turnover has also been affected badly due to fluctuation in the currency rates in the International market. The Company has earned net profit of Rs. 28.617 Million after making provision of 18.529 Million as depreciation as compare to 60.242 Million during the previous year. The Company has good volumes of Supply orders in hand, which will increase the sales during the coming period. The services and marketing of the company are being appreciated by the customers and the Company is receiving very good response. The directors are hopeful to earn good profits in the coming period. The Company has introduced a new item Auto Dipper, which is the present need of the India, however launching of the same in market has been delayed due to Government Policies, which are likely to be finalized very soon. Directors are hopeful to capture a major part of Indian market.

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Deferred payment Indian sources	48.783	52.821
Loans and advances from others	0.000	6.289
Other loans and advances	2.770	7.500
Total	51.553	66.610

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10487795	21/02/2014	10,000,000.00	PUNJAB NATIONAL BANK	PUNJAB NATIONAL BANK, BATHINDA, Punjab - 151001, INDIA	C02388916
2	10333969	27/01/2012	80,000,000.00	STATE BANK OF INDIA	KIKAR BAZAR, BATHINDA, Punjab - 151001, INDIA	B31439045
3	10331797	28/12/2011	60,200,000.00	STATE BANK OF INDIA	KIKAR BAZAR, BATHINDA, Punjab - 151001, INDIA	B30566475
4	10138775	30/09/2013 *	1,481,600,000.00	STATE BANK OF INDIA	KIKAR BAZAR, BATHINDA, BATHINDA, Punjab - 151001, INDIA	B86703899

* Date of charge modification

FIXED ASSETS

• Land
• Buildings
• Plant and equipment
• Furniture and fixtures
• 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 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.62.15
UK Pound	1	Rs.92.73
Euro	1	Rs.68.23

INFORMATION DETAILS

Information Gathered by :	RKH
Analysis Done by :	SUM
Report Prepared by :	PNM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		36

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.