MIRA INFORM REPORT

Report No. :	318163
Report Date :	20.04.2015

IDENTIFICATION DETAILS

Name :	HBL POWER SYSTEMS LIMITED (w.e.f.09.12.2006)
Formerly Known As :	HBL NIFE POWER SYSTEMS LIMITED (w.e.f.26.04.2000) SAB NIFE POWER SYSTEMS LIMITED
Registered Office :	8-2-601, Road No. 10, Banjara Hills, Hyderabad – 500034, Telangana
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	29.08.1986
Com. Reg. No.:	01-006745
Capital Investment / Paid-up Capital :	Rs. 253.000 Million
CIN No.: [Company Identification No.]	L40109TG1986PLC006745
TIN No.:	Not Available
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	HYDH00591D
PAN No.: [Permanent Account No.]	AAACH8421K
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer, Design and Development of specialized Batteries and DC Systems and Associated Electronics.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of “Beaver Engineering and Holdings Limited, Hyderabad”. It is an established company having a good track record. Financial position of the company is sound. Trade relations are fair. Business is active. Payment terms are reported to be regular and as per commitment. In view of long standing experience of the promoters and established track record of operations, the company can be considered normal 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.

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	Long Term Bank facilities : A-
Rating Explanation	Adequate degree of safety and low credit risk.
Date	09.10.2014

Rating Agency Name	CARE
Rating	Short Term Bank facilities : A2+
Rating Explanation	Strong degree of safety and low credit risk.
Date	09.10.2014

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 DECLINED

MANAGEMENT NON CO-OPERATIVE (TEL No. 91-40-23355575)

LOCATIONS

Registered/ Head Office :	8-2-601, Road No. 10, Banjara Hills, Hyderabad – 500034, Telangana, India
Tel. No.:	91-40-23355575/ 23351934/ 23355085/ 23355585
Fax No.:	91-40-23355048/ 23353189
E-Mail :	contact@hbl.in finance@hbl.in nrkrishna@hbl.in
Website :	http://www.hbl.in
Factory 1 :	Aliabad Post, Lalgadi Malakpet, Shameerpet Mandal, R.R. District, Hyderabad - 500078, Telangana , India
Tel. No.:	91- 8418-244640
Fax No.:	91- 8418-301652/ 301574
E-Mail :	contact@hbl.in
Factory 2 :	Survey No. 64-67, 77-81, Nandigaon Village, Kothur Mandal, Mahaboobnagar District - 509223, Andhra Pradesh, India
Tel. No.:	91-8548-240456
Fax No.:	91-8548-240474
E-Mail :	contact@hbl.in
Factory 3 :	Survey No. 351, Thumukunta Village, Shameerpet Mandal, Rangareddy District, Hyderabad - 500078, Telangana, India
Tel. No.:	91-8418-247680
Fax No.:	91-8418-247683
E-Mail :	emu@hbl.in
Factory 4 :	Sy No 155 to 156 (Post) Bhootpur (Village and Mandal), Mahaboobnagar District - 509001, Andhra Pradesh, India
Tel. No.:	91-8542-236539
Fax No.:	91-8542-236205
E-Mail :	contact@hbl.in
Factory 5 :	Sy 123-126, 138(p) to 144(p), Kandivasala Village, Pusapatirega Mandal, Vizayanagaram District - 535204, Andhra Pradesh, India
Tel. No.:	91-8922-258159
E-Mail :	contact@hbl.in
Factory 6 :	Plot No. Q6 to Q10, R1 to R10 S1 to S9, Phase III, VSEZ, Duvvada, Visakhapatnam - 530046, Andhra Pradesh, India
Tel. No.:	91-891-2543255-56
E-Mail :	contact@hbl.in
Factory 7 :	Plot No. 1, Sector 8A, IIE Ranipur (BHEL Haridwar - 249403, Uttarakhand, India
Tel. No.:	91-1334-235420
Fax No.:	91-1334-235421
E-Mail :	contact@hbl.in
Factory 8 :	Plot No. 425, Sector - 8,  IMT Manesar, Gurgaon - 122050, Haryana, India
Tel. No.:	91-124-4240168/ 4240058
E-Mail :	contact@hbl.in
Sales Offices :	Located at: · Ahmedabad  · Bangalore  · Bhopal  · Bhubneshwar  · Chandigarh  · Chennai  · Delhi  · Guwahati  · Hyderabad  · Jaipur  · Kerala  · Kolkata  · Lucknow  · Raipur  · Mumbai  · Patna  · Ranchi
Channel Sales Offices :	Located at: · Bhopal  · Hyderabad  · Patna  · Ranchi  · Vijayawada
Overseas Offices :	Located at: · USA · Saudi Arabia · Germany

DIRECTORS

AS ON 31.03.2014

Name :	Dr. A.J. Prasad
Designation :	Chairman and Managing Director
Name :	Mr. M S S Srinath
Designation :	Whole Time Director
Date of Birth/Age :	23.04.1969
Qualification :	BA (Economic Hons)
Date of Appointment :	24.11.1997
Name :	Mrs. Kavita Prasad
Designation :	Whole Time Director
Date of Birth/ Age :	11.12.1971
Qualification :	B Com, PGDCA
Expertise in specific functional Area :	Overall in-charge of the Financial activities and specific focus on Exports Marketing and overseas subsidiaries of the company.
Date of Appointment :	10.05.2000
Other Directorship :	· Beaver Engineering and Holdings Private Limited · Kairos Engineering Limited · Naval Systems and Technologies Private Limited · Plumac Batteries Private Limited · HBL Germany GmbH, Germany · HBL America Inc. USA
Name :	Mr. P. Ganapathi Rao
Designation :	Director
Date of Birth/ Age :	01.09.1955
Qualification :	FCA
Expertise in specific functional Area :	Practicing Chartered Accountant and has expertise in Finance, Audit Systems and as well as Capital Market.
Date of Appointment :	25.04.2005
Name :	Mrs. Preeti Khandelwal
Designation :	Director
Date of Birth/ Age :	24.03.1971
Qualification :	B Com, ACS
Expertise in specific functional Area :	She is a qualified Company Secretary and has expertise in Company Law and FEMA related issues.
Date of Appointment :	02.03.2009
Name :	Mr. V.V.S. Ravindra
Designation :	IDBI Nominee Director w.e.f. 25th June, 2012
Date of Birth/ Age :	18.01.1964
Qualification :	B Tech (Chemical)
Date of Appointment :	25.06. 2012
Name :	Mr. J. Vidya Shankar
Designation :	IDBI Nominee Director (upto 14 November 2014)
Date of Birth/ Age :	26.12.1962
Qualification :	M. Tech (Mechanical Engineering)
Expertise in specific functional Area :	Finance and Engineering
Date of Appointment :	14.11.2014
Name :	Mr. Sanjiv Singhal
Designation :	Director
Date of Birth/ Age :	23.03.1967
Qualification :	MBA from the Wharton Business School (USA), MA with distinction from the University of Essex, UK and BA with honours from Delhi University.
Date of Appointment :	14.08.2012
Name :	Mr. Ajay Bhaskar Limaye
Designation :	Director
Date of Birth/Age :	20.05.1969
Qualification :	CFA Charter holder with prior qualification as an Engineer with an MBA in Finance
Date of Appointment :	14.02.2013
Other Directorship :	Data Patterns (India) Private Limited

KEY EXECUTIVES

Name :	M V S S Kumar
Designation :	Company Secretary
Name :	Mr. Ravinder
Designation :	Finance Department
Audit Committee :	· Mr. P Ganapathi Rao, Chairman of the Committee · Mrs. Kavita Prasad · Mr. V V S Ravindra – IDBI Nominee (upto 14 November 2014) · Mr. J. Vidya Shanker – IDBI Nominee (from 14 November 2014) · Mrs. Preeti Khandelwal

SHAREHOLDING PATTERN

AS ON 31.12.2014

Category of Shareholder	No. of Shares	% of No. of Shares
		As a % of (A+B)
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	43971629	17.38
Bodies Corporate	143410653	56.68
Sub Total	187382282	74.06
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	187382282	74.06
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	5830326	2.30
Financial Institutions / Banks	5000	0.00
Foreign Institutional Investors	1981260	0.78
Sub Total	7816586	3.09
(2) Non-Institutions
Bodies Corporate	23283480	9.20
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	27058129	10.69
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	5483046	2.17
Any Others (Specify)	1976477	0.78
Non Resident Indians	1051696	0.42
Clearing Members	431574	0.17
Trusts	493207	0.19
Sub Total	57801132	22.85
Total Public shareholding (B)	65617718	25.94
Total (A)+(B)	253000000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1)	0	0.00
(2)	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	253000000	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Design and Development of specialized Batteries and DC Systems and Associated Electronics.

Products :

Product Description	Item Code No. (ITC Code)
Lead Acid Batteries	850720.00
Nickel Cadmium Batteries	850730.00
Silver Zinc and Other Silver based Batteries (Torpedo)	850620.00
Silver Zinc Batteries (Aircraft)	850780.00
Power Electronic Rectifiers	850440.09
Uninterrupted Power Supply Systems	847199.05
Perforated Steel Strip	721250.09
Lithium Batteries	850620.00
Battery Materials	850790.09

Brand Names :

--

Agencies Held :

--

Exports :

--

Imports :

--

Terms :

--

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

Not Divulged

Bankers :

· State Bank of India

· State Bank of Hyderabad

· IDBI Bank Limited

· Axis Bank Limited

· ICICI Bank Limited

· Exim Bank Limited

· HDFC Bank Limited

· YES Bank Limited

· Export- Import Bank of India

· Industrial Development Bank of India Limited

Facilities :

SECURED LOANS	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
LONG TERM BORROWINGS
Secured Loans from
IDBI Bank Limited	171.360	408.520
State Bank of India	215.963	361.101
State Bank of Hyderabad	105.000	195.583
Exim Bank Limited	0.000	17.794
Axis Bank Limited	0.000	525.494
ICICI Bank Limited	230.000	460.000
Secured Loans from Others
Against Vehicles from HDFC Bank	6.221	2.299
SHORT TERM BORROWINGS
(Loans repayable on Demand) Working Capital Loans from
State Bank of India	1374.863	1328.428
State Bank of Hyderabad	254.742	298.618
IDBI Bank Limited	362.562	366.878
ICICI Bank Limited	497.979	500.040
Axis Bank Limited	397.210	0.000
Axis Bank Limited EPC	98.053	0.000
Buyers Credit from Banks	543.736	538.218
Total	4257.689	5002.973

NOTES:

LONG TERM BORROWINGS

Term Loans :

The particulars of loans drawn, nature of security, terms of repayment, rate of interest, instalments due and loan wise outstanding are as under.

Current Maturities of Long Term Loans

Instalments due within 12 months from the date of Balance Sheet classified as current as shown above are disclosed under " Other Current Liabilities"

Term Loan from IDBI, SBI and SBH :

The Term Loans from IDBI, State Bank of Hyderabad and State Bank of India are secured by a first charge on the movable and immovable assets (both present and future) of the company, (save and except exclusive charges already created if any) situated (a) at Lalgadi Malakpet and Aliabad Villages, Shameerpet Mandal, Ranga Reddy Dist, (b) at Nandigaon Village, Mahbubnagar Dist, (c) at Bhootpur Village, Mahaboobnagar Dist, (d) at Kandivalasa Village, Vijayanagaram Dist, and (e) at VSEZ, Visakhapatnam Dist. The loans are also secured by a second charge on the current assets of the company. These loans are also guaranteed by Managing Director and a Director in their personal capacity.

Name of the Bank	Loan Amount	No of Instalments (Quarterly)	% of Interest	Outstanding As on 31-03-2014	Instalments Due
IDBI Bank Limited
- Term Loan I	600.000	24	13.00	100.000	4
- Term Loan II	720.000	21	13.50	308.520	10
State Bank Of India
- Term Loan I	300.000	24	13.50	33.138	3
- Term Loan II	720.000	26	13.95	327.963	12
State Bank Of Hyderabad
- Term Loan I	300.000	24	14.70	30.583	3
- Term Loan II	360.000	24	14.20	165.000	11

Term Loan from ICICI Bank :

The term loan of Rs.600.000 Million for Capex and Rs.400.000 Million for working capital is secured by subservient / residual charge on all current and moveable assets of the Company both present and future. The charge is subservient to the existing lenders to the extent of all drawn and undrawn limits of term loans and working capital only. The loan is guaranteed by the Managing Director and a Director in their personal capacity.

Particulars	Loan Amount	No of Instalments (Quarterly)	% of Interest	Outstanding As on 31-03-2014	Instalments Due
Term Loan	600.000	16	13.00	300.000	8
Working Capital Term Loan	400.000	20	13.00	160.000	8

Other Loans :

HDFC Bank

The Term Loans for acquiring vehicles are secured by exclusive hypothecation of vehicles acquired through execution of D.P. Note.

SHORT TERM BORROWINGS

Working Capital Loans

· The Working Capital Loans from the State Bank of India, State Bank of Hyderabad, IDBI Bank Limited, ICICI Bank Limited and Axis Bank are secured by a first charge on all the chargeable current assets and by a second charge on the fixed assets (both present and future) of the Company. All the loans are also guaranteed by Managing Director, two other Directors of the Company, and Smt. A. Uma Devi in their personal capacities.

· Purchase Bill Discounting from Kotak Mahindra Bank Limited is guaranteed by CMD and a Director of the Company in their personal capacity. Purchase Bill Discounting from IDBI Bank Limited. is secured by accepted bill of exchange and postdated cheque/standing instructions for making payment on due date

· The facilities extended by YES Bank are secured by subservient charge on all the current and movable fixed assets of the company. Further the facilities are guaranteed by Managing Director and one other promoter director of the Company.

· Working Capital Short Term Loan from HDFC Bank is secured by personal guarantee of CMD and is repayable within 90 days with interest @10.50% p.a.

· Inter Corporate Deposit from Holding Company is repayable on demand with interest @ 12% p.a.

· Loan from Directors is repayable on demand with interest @ 12% p.a.

· There were delays in clearing the Purchase bills discounted with IDBI Bank Limited and Kotak Mahindra Bank to the extent of Rs.35.521 Million for a period of 7 days as on the Balance Sheet data (since cleared).

· The outstanding balance in YES Bank Limited current account represents facility reckoned as Cash Credit.

Financial Institution:	Housing Development Finance Corporation Limited, Basheerbagh, Hyderabad, Andhra Pradesh, India
Auditors 1 :
Name :	Satyanarayana and Company Chartered Accountants
Address :	Amar Mansion, Ranigunj, Secunderabad – 500003, Andhra Pradesh, India
Auditors 2 :
Name :	Rao and Kumar Chartered Accountants
Address :	10-19-15, Soudamani, Seripuram, CBM Compound, Visakhapatnam – 530003, Andhra Pradesh, India
Cost Auditors :
Name :	Narasimha Murthy and Company Cost Accountants
Address :	Hyderabad, Andhra Pradesh, India
Memberships :	Not Available
Collaborators :	Not Available
Holding Company :	Beaver Engineering and Holdings Private Limited, Hyderabad
Subsidiaries :	Agile Electric Sub Assembly Private Limited SCIL Infracon Private Limited HBL Germany, GMBH HBL America
Joint Venture :	Gulf Batteries Company Limited, Kingdom of Saudi Arabia
Associate :	Naval Systems and Technologies Private Limited Guided Missile Engineering India Private Limited VARP Power Private Limited
Companies which Directors are Interested :	Sankhya Infotech Limited

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
300000000	Equity Shares	Re.1/- each	Rs.300.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
253000000	Equity Shares	Re.1/- each	Rs.253.000 Million

Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

Equity Shares	31.03.2014
	No. of Shares	Rs. in Million
At the beginning of the period	253000000	253.000
Issued during the period	--	--
Outstanding at the end of the period	253000000	253.000

Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Re.1 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

Shares held by holding/ultimate holding company

Out of equity shares issued by the company, details of shares held by its holding company is as below:

Name of the Shareholder	No. of Shares
Beaver Engineering and Holdings Limited	143059443

Details of shareholders holding more than 5% shares in the company

Name of the Shareholders	31.03.2014
	No. of Shares	% holding in the class
Equity shares of Re.1 each fully paid
Beaver Engineering and Holdings Limited	143059443	56.55
A J Prasad	27654500	10.93
Citigroup Global Markets Mauritius Private Limited	16701761	6.60
Reliance Capital Limited	14360000	5.68

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	253.000	253.000	253.000
(b) Reserves & Surplus	5598.567	5207.660	5047.324
(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)	5851.567	5460.660	5300.324
(3) Non-Current Liabilities
(a) long-term borrowings	2240.726	3353.057	3339.009
(b) Deferred tax liabilities (Net)	245.670	225.142	195.142
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	20.300	15.872	15.867
Total Non-current Liabilities (3)	2506.696	3594.071	3550.018
(4) Current Liabilities
(a) Short term borrowings	4324.182	3588.664	3263.361
(b) Trade payables	2930.755	1922.144	1379.768
(c) Other current liabilities	1878.503	2100.073	2135.838
(d) Short-term provisions	189.782	137.859	117.238
Total Current Liabilities (4)	9323.222	7748.740	6896.205
TOTAL	17681.485	16803.471	15746.547
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	4581.292	4736.372	4939.646
(ii) Intangible Assets	160.010	126.061	158.006
(iii) Capital work-in-progress	211.631	262.407	351.744
(iv) Intangible assets under development	349.713	416.054	202.084
(b) Non-current Investments	294.354	1495.314	1512.454
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	104.719	98.573	190.780
(e) Other Non-current assets	140.764	122.913	0.000
Total Non-Current Assets	5842.483	7257.694	7354.714
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	5975.669	4330.269	2877.541
(c) Trade receivables	4580.816	4313.807	3808.742
(d) Cash and cash equivalents	464.895	211.798	507.287
(e) Short-term loans and advances	817.622	689.903	1198.263
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	11839.002	9545.777	8391.833
TOTAL	17681.485	16803.471	15746.547

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2014	31.03.2013	31.03.2012
	SALES
		Income		12807.935	11974.169	10895.293
		Other Income		100.153	91.319	164.721
		TOTAL (A)		12908.088	12065.488	11060.014
Less	EXPENSES
		Cost of Material Consumed		8229.468	7303.673	5969.425
		Purchase of Traded goods		28.299	102.516	292.415
		(Increase) / Decrease in Inventory		(381.535)	(718.540)	9.799
		Employee Benefits Expense		1283.978	1178.876	1160.008
		Other Expenses		2649.749	2688.657	2101.869
		Exceptional Items		(565.398)	(77.856)	67.812
		TOTAL (B)		11244.561	10477.326	9601.328
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			1663.527	1588.162	1,458.686
Less	FINANCIAL EXPENSES (D)			757.387	933.984	898.087
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			906.140	654.178	560.599
Less	DEPRECIATION/ AMORTISATION (F)			385.095	400.850	343.612
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			521.045	253.328	216.987
Less	TAX (H)			70.940	48.886	120.972
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			450.105	204.442	96.015
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			558.204	447.868	445.960
Less	APPROPRIATIONS
			Transfer to General Reserve	50.000	50.000	50.000
			Dividend	50.600	37.950	37.950
			Tax on Dividend	8.599	6.156	6.157
	BALANCE CARRIED TO THE B/S			899.110	558.204	447.868
	EARNINGS IN FOREIGN CURRENCY
			Export sales	2512.948	2596.324	2260.489
			Services	44.999	94.471	4.033
	TOTAL EARNINGS			2557.947	2690.795	2264.522
	IMPORTS
			Raw Materials, Components and Spares	3775.041	3198.843	2241.058
			Capital Items / Equipment	6.594	52.376	136.575
	TOTAL IMPORTS			3781.635	3251.219	2377.633
	Earnings / (Loss) Per Share (Rs.)			1.78	0.81	0.38

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	3.51	1.71	0.88
Operating Profit Margin (PBDIT/Sales)	(%)	12.99	13.26	13.39
Return on Total Assets (PBT/Total Assets}	(%)	3.10	1.73	1.59
Return on Investment (ROI) (PBT/Networth)		0.09	0.05	0.04
Debt Equity Ratio (Total Debt /Networth)		1.12	1.27	1.25
Current Ratio (Current Asset/Current Liability)		1.27	1.23	1.22

QUARTERLY RESULTS

PARTICULARS	30.06.2014	30.09.2014	31.12.2014
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	2855.700	3776.400	3218.400
Total Expenditure	2717.600	3385.400	2742.700
PBIDT (Excl OI)	138.100	391.000	475.700
Other Income	33.700	(5.500)	70.000
Operating Profit	171.800	385.500	545.700
Interest	177.600	170.500	182.500
Exceptional Items	(45.600)	(1.200)	(56.400)
PBDT	(51.400)	213.700	306.700
Depreciation	128.100	132.600	134.700
Profit Before Tax	(179.400)	81.200	172.100
Tax	(6.000)	(5.900)	26.500
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	(173.400)	87.100	145.600
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	(173.400)	87.100	145.600

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	253.000	253.000	253.000
Reserves & Surplus	5047.324	5207.660	5598.567
Net worth	5300.324	5460.660	5851.567
long-term borrowings	3339.009	3353.057	2240.726
Short term borrowings	3263.361	3588.664	4324.182
Total borrowings	6602.370	6941.721	6564.908
Debt/Equity ratio	1.246	1.271	1.122

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	10895.293	11974.169	12807.935
		9.902	6.963

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	10895.293	11974.169	12807.935
Profit	96.015	204.442	450.105
	0.88%	1.71%	3.51%

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

INDEX OF CHARGE:

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10550947	27/03/2015 *	920,000,000.00	HDFC BANK LIMITED	4TH FLOOR, SURYODAYA, BEGUMPET, HYDERABAD, TELANGANA - 500016, INDIA	C49400476
2	10502462	26/03/2014	750,000,000.00	AXIS BANK LIMITED	AXIS BANK LIMITED, CORPORATE BANKING BRANCH, BEGUM  PET ROAD, SOMAJIGUDA, HYDERABAD, TELANGANA - 500016, INDIA	C06353841
3	10450609	28/09/2013 *	300,000,000.00	YES BANK LIMITED	9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA, DR.  ANNIE BESANT ROAD, WORLI, MUMBAI, MAHARASHTRA -  400018, INDIA	B87600219
4	10263361	20/02/2015 *	1,000,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	C45362845
5	10079748	29/11/2007	400,000,000.00	EXPORT- IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE  COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	A28733962
6	10060541	04/07/2007	350,000,000.00	ICICI BANK LIMITED	ICICI BANK TOWER, LEVEL IV, EAST WING, 1-11-256, STREET NO.1, BEGUMPET, HYDERABAD, ANDHRA PRADESH  - 500016, INDIA	A19286574
7	10053948	08/05/2007	800,000,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA LIMITED	MAHAVIR HOUSE, BASHEERBAGH, HYDERABAD, ANDHRA PRADESH - 500029, INDIA	A16033631
8	10020777	13/09/2006	7,500,000.00	HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED	RAMON HOUSE 169BACKBAY RECLAMATION, H T PAREKH MARG, MUMBAI, MAHARASHTRA - 400020, INDIA	A05195300
9	90139505	30/03/2005	3,000,000.00	HOUSING DEVELOPMENT FINANCE CORP. LIMITED	BASHEERBAGH, HYDERABAD, ANDHRA PRADESH, INDIA	-
10	90140336	16/12/2004	120,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, SECUNDERABAD, ANDHRA PRADESH -  500003, INDIA	-
11	90140329	12/07/2007 *	30,000,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA LIMITED	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	A21104427
12	90140233	04/02/2015 *	8,600,000,000.00	IDBI BANK LIMITED	SPECIALIZED CORPORATE BRANCH, CBG, 5-9-89/1&2, CHAPEL ROAD, HYDERABAD, TELANGANA - 500001, INDIA	C43533009
13	90140216	02/05/2002 *	85,000,000.00	IDBI BANK LIMITED	MAHAIR HOUSE, BASHEERBAGH SQUARE, HYDERABAD, ANDHRA PRADESH - 500029, INDIA	-
14	90139321	29/08/2001	6,000,000.00	THE HOUSING DEVELOPMENT FINANCE CORP. LIMITED	HDFC HOUSE, B-6/3; SAFDARJUNG ENCLAVE, NEW DELHI, DELHI, INDIA	-
15	90140436	31/08/1998	288,756.00	DCL FINANCE LIMITED	SOMAJIGUDA, HYDERABAD, ANDHRA PRADESH, INDIA	-
16	90140435	06/08/1998	871,823.00	DCL FINANCE LIMITED	SOMAJIGUDA, HYDERABAD, ANDHRA PRADESH, INDIA	-
17	90140434	17/07/1998	1,031,344.00	DCL FINANCE LIMITED	6-3-569/1; DCL CHAMBERS OPP RTA OFFICE, SOMAJIGUDA, HYDERABAD, ANDHRA PRADESH, INDIA	-
18	90140433	11/05/1998	1,231,493.00	DCL FINANCE LIMITED	6-3-569/1; DCL CHAMBERS OPP RTA OFFICE, SOMAJIGUDA, HYDERABAD, ANDHRA PRADESH, INDIA	-
19	90140432	18/04/1998	723,131.00	DCL FINANCE LIMITED	6-3-569/1; DCL CHAMBERS OPP RTA OFFICE, SOMAJIGUDA, HYDERABAD, ANDHRA PRADESH, INDIA	-
20	90137668	20/10/1994	30,000,000.00	ID BANK OF INDIA LIMITED	5-9-891&2 CHAPEL ROAD, HYDERABAD, DELHI - 500001,  INDIA	-

*Date of modification Charges

UNSECURED LOANS:

Particulars	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
LONG TERM BORROWINGS
Interest Free Sales Tax Loan (Deferred Payment Liability)	117.162	163.637
Loan from HPFSIPL	10.338	12.310
Finance Lease Obligations from HPFSIPL	4.682	6.319
Loan from Holding Company	1380.000	1200.000
SHORT TERM BORROWINGS
Unsecured (from Banks)
Purchase Bill Discounting from Kotak Mahindra Bank Limited	233.638	127.458
Purchase Bill Discounting from IDBI Bank Limited	143.040	0.000
Sale Bill Discounting backed by LCs from Banks	114.437	371.424
HDFC Short Term Loan	150.000	0.000
Yes Bank Limited EPC	88.259	0.000
Yes Bank Limited Current Account	9.063	0.000
Unsecured (from others)
Inter Corporate Deposit from Holding Company	24.500	0.000
Inter Corporate Deposit from Others	0.000	30.000
Loans from Directors	32.100	27.600
Total	2307.219	1938.748
Notes: LONG TERM BORROWINGS Interest Free Sales Tax Loan (IFST): · IFST Loan of Rs.149.100 Million shown under unsecured loan represents the Sales tax payable by the Company given as Loan by A.P State Government under a scheme, to be repaid without interest after 14 years from the date of ailment. The loan requires creation of a charge on the assets of the Company. Pending creation of charge, the amount is shown as ‘Unsecured Loan’ to be regrouped as Secured Loan as and when the charge is created. · Term Loan from Hewlett-Packard Financial Services India Private Limited (HPFSIPL) towards implementation of SAP Project is repayable in 20 quarterly instalments from the date of loan with interest at the rate ranging between 11% and 13%. The loan is also guaranteed by a Director of the Company. · Finance Lease of Assets from Hewlett-Packard Financial Services India Private Limited (HPFSIPL) for Implementation of SAP Project is repayable by way of lease rentals over a period of 5 years and is also guaranteed by a Director of the Company. · Loan from Holding Company is Interest free and is repayable after a moratorium period of 10 years from the date of first drawl. · There were no continuing defaults as on the Balance Sheet date in repayment of loan instalments and interest.

PERFORMANCE REVIEW 2013-14:

The total operating income for the year was Rs.1298.088 Million representing a growth of approximately 7% as compared to previous year income of Rs.12065.488 Million. However due to various predominant reasons attributed to the industry concerned particularly cost of raw material, the expenditure was also increased by 12.7%. This has resulted in deceased PBIDT for the year which stood at Rs.1098.129 Million compared to Rs.1588.161 Million in the previous year. After suitable provision for depreciation and amortization of expenses, PBT for the year was Rs.521.045 Million compared to Rs.253.326 Million in the previous year and after making a provision of Rs.70.940 Million for tax and tax adjustments for the year; the net profit (PAT) for the year was Rs.450.105 Million as compared to Rs.204.442 Million in the previous year.

CURRENT YEAR’S PERFORMANCE:

Due to macro-economic factors overall markets have not shown significant growth. Telecom market demand (which constitutes Company’s prime business segment) continued to be stagnant. Delays in Railway and Defence business also have an effect on Company’s operations. The combined factors have put pressure on Company’s performance during 2014-15. The Directors have taken necessary corrective steps and barring unforeseen circumstances, performance of the Company in the coming years is expected to be encouraging.

MANAGEMENT DISCUSSION AND ANALYSIS

This year’s annual report cover illustrates HBL’s continuing intent to develop consumer markets. So far, the company has been focused primarily on institutional customers in Industry, Railways, Defence, in both domestic and export markets. New products for consumer markets will reduce dependence on industrial demand and add value to HBL stock.

_ To meet the emerging demand for maintenance free deep cycling batteries for home inverters, HBL developed a Tubular plate Gel Lead acid battery to be sold along with the electronic inverter suited for such a battery.

They see this as a premium product for the upper end market.

_ A lower cost diesel engine starting battery has been developed to meet a wide range of applications.

_ A range of maintenance free motor cycle batteries has been developed to meet the growing demand for such a product.

All three products reflect HBL’s capability to develop suitable products to meet either emerging (nascent) needs or growth in demand. The investment on product development and commercialization is an additional stress on margins when profits are low; because costs are incurred without corresponding revenue.

INDUSTRIAL BATTERIES

Demand in FY 14 has been disappointing, in line with the experience of most manufacturing companies, both in domestic and export markets. The credit squeeze has also made it much more difficult to balance the risks of choosing between supplying on credit or keeping the capacity underutilized. The situation is improving, as of October 2014.

RAILWAY SIGNALING

Product Development has taken much longer than expected. Six years was estimated in 2005. Now it is clear that six has become ten. However it is now possible to say that by end of FY 15, HBL will be in the primary position in the Indian market.

One other difficulty has been that, although they planned on commercializing one product a year from 2012, unexpected delays have led to bunching: all products will now be commercialized concurrently in FY 2016.

EXPORTS

HBL Germany – GmbH had disruptions (and some losses) due to unethical behavior of some local employees. This has led to the delay in finalizing the accounts of this company and hence HBL’s consolidated accounts, leading to a delay in holding their AGM.

On the positive side, HBL has received approvals from Government authorities in Europe and the USA, which enable them to sell aircraft batteries made in India, to airlines flying Airbus 318 – 321 series and Boeing 737 NG series of aircraft.

UNAUDITED FINANCIAL RESULTS FOR THE NINE MONTHS ENDED 31^ST DECEMBER, 2014

(Rs. In Millions)

Particulars	Quarter Ended			Nine Months Ended
	31.12.2014	30.09.2014	31.12.2014
1. Income from operations
a) Net sales/ Income from operation (net of excise duty)	3218.417	3776.413	9850.554
b) Other operating income	--	--	--
2.Expenditure
a) Cost of material consumed	1835.292	1848.333	5517.609
b) Purchases of stock in trade	28.138	0.128	42.082
c) (Increase)/ Decrease in Finished Goods, Work in Progress and Stock-in-trade	(32.224)	643.676	600.150
d) Employees benefit expenses	384.140	357.352	1129.198
e) Depreciation and amortization expense	134.689	132.571	395.314
f) Other expenses	527.392	535.937	1556.714
Total expenses	2877.427	3517.997	9241.067
3. Profit/ (Loss) from operations before other income, finance costs and exceptional items (1-2)	340.990	258.416	609.487
4. Other income	69.980	(5.530)	98.161
5. Profit/ (Loss) from ordinary activities before finance costs and exceptional items (3+4)	410.970	252.886	707.648
6. Finance costs	182.537	170.514	530.632
7. Profit/ (Loss) from ordinary activities after finance costs but before exceptional items (5-6)	228.433	82.372	177.016
8. Exceptional item – Income/ (Expenditure)	(56.384)	(1.220)	(103.217)
9. Profit/ (Loss) from ordinary activities before tax (7+8)	172.049	81.152	73.799
10.Tax expense/ (Credit)	26.466	(5.900)	14.566
11.Net Profit / (Loss) from ordinary activities after tax (9-10)	145.583	87.052	59.233
12.Extraordinary Items (net of tax expense)	--	--	--
13.Net Profit / (Loss) for the period (11 -12)	145.583	87.052	59.233
14.Paid-up equity share capital (Face Value Re. 1/- per share)	253.000	253.000	253.000
15. Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year	--	--	--
16. I .Earnings per shares (before extraordinary items)
a) Basic	0.58	0.34	0.23
b) Diluted	0.58	0.34	0.23
ii. Earnings per share (after extraordinary items)
a) Basic	0.58	0.34	0.23
b) Diluted	0.58	0.34	0.23
A. Particulars of shareholding
1. Public Shareholding
- Number of shares	65617718	65968928	65617718
- Percentage of shareholding	25.94%	26.07%	25.94%
2. Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	--	--	--
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	--	--	--
Percentage of shares (as a % of total share capital of the company)	--	--	--
b) Non Encumbered
Number of shares	187382282	187031072	187382282
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	100.00%	100.00%	100.00%
Percentage of shares (as a % of total share capital of the company)	74.06%	73.93%	74.06%
B. Investor Complaints (Nos.)
Pending at the beginning of the quarter	--
Receiving during the quarter	40
Disposed of during the quarter	40
Remaining unreserved at the end of the quarter	--

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDED 31^ST DECEMBER, 2014

(Rs. In Millions)

Particulars	Quarter Ended			Nine Months Ended
	31.12.2014	30.09.2014	31.12.2014
Segment Revenue
Batteries	2889.081	2853.696	8093.768
Electronics	201.315	692.159	1185.767
Unallocated	152.948	205.575	647.554
Total	3243.344	3751.430	9927.089
Less: Intersegment Revenue	24.927	(24.983)	76.535
Net Sales/ Income from operations	3218.417	3776.413	9850.554
Segment Results
Batteries	481.206	491.219	1020.016
Electronics	(19.022)	(83.622)	(26.609)
Unallocated	(28.506)	(31.109)	(114.447)
Total	433.678	377.488	878.960
Less: i) Interest	182.537	170.514	530.632
ii) Unallocable Expenditure net of	149.072	120.293	372.690
iii) Unallocalbe Income	69.980	(5.530)	98.161
Total profit before tax after extraordinary items	172.049	81.151	73.799
Segment-wise Capital Employed
(Assets - Liabilities)
Batteries	9927.475	9429.889	9927.475
Electronics	932.031	1290.632	932.031
Unallocated	(4947.706)	(5017.146)	(4948.706)
Total	5910.800	5703.375	5910.800

NOTE

1. The Unaudited results for the quarter ended 31^st December, 2014 were reviewed by the Audit Committee in its meeting held on 14^th February, 2015 and approved by the Board of Directors at the meeting held on 14^th February, 2015

2. The results were also subjected to Limited Review by the Statutory Auditors of the Company

3. During the quarter, severe damage was caused by Hud Hud Cyclone to stocks and assets in the Company's units at Vizianagaram and SEZ, Visakhapatnam. The operations were subsequently restored and the Company had lodged a final claim with the Insurers towards recovery of the losses. The company has in place a valid IAR (Insurance All Risks) policy, which adequately covers the entire amount of claim. Pending settlement of the claim by the Insurers, actual loss incurred due to damages to Inventory and repairs and restoration expenses on assets damaged, up to the end of the quarter, was expensed under exceptional items and the insurance claim for an equivalent amount is accounted for as other income. The company is confident in recovering the entire amount of claim lodged.

4. Exceptional items for the nine months ended represents net loss on sale of assets Rs. 46.300 Million and Rs.57.000 Million on account of cost of damaged stocks and repairs incurred consequent to cyclone. Conversely, Rs. 57.000 Million representing insurance claim is included in Other Income.

5. The Company has reassessed the remaining useful life of its Tangible Assets as per the requirement of Part A of Schedule II to the Companies Act, 2013. As a result of this, the Depreciation charge for the quarter ended 31st December 2014, is higher by Rs. 30.141 Million and for the nine months ended by Rs. 90.423 Million. Further, based on the transitional provision provided in note no.7 (b) of the said Schedule, an amount of Rs.61.840 Million (net of Deferred Tax) had been adjusted against Retained Earnings in respect of Tangible Assets whose useful life has exhausted.

6. With regard to its proposal for the merger of one of its wholly owned subsidiary, the company is in the process of complying with the requisite formalities. 

7. Previous year’s figures regrouped wherever necessary.

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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. 62.35
UK Pound	1	Rs. 93.10
Euro	1	Rs. 67.13

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	DIV
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		52

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.