MIRA INFORM REPORT

Report No. :	503211
Report Date :	10.04.2018

IDENTIFICATION DETAILS

Name :	HBL POWER SYSTEMS LIMITED (2006)
Formerly Known As :	HBL NIFE POWER SYSTEMS LIMITED
Registered Office :	8-2-601, Road No. 10, Banjara Hills, Hyderabad-500034, Telangana
Tel. No.:	91-40-23355575/ 23351934/ 23355085/ 23355585
Country :	India
Financials (as on) :	31.03.2017
Date of Incorporation :	29.08.1986
Com. Reg. No.:	36-006745
Capital Investment / Paid-up Capital :	INR 277.195 Million
CIN No.: [Company Identification No.]	L40109TG1986PLC006745
IEC No.: [Import-Export Code No.]	0988000687
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
GSTN : [Goods & Service Tax Registration No.]	36AAACH8421K1ZI
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 :	Manufacturing of different types of batteries including lead acid, niCad, silver zinc, lithium and railway and defence electronics, solar photovoltaic modules and other products. The company is also engaged in service activities related to the above products. [Registered Activity]
No. of Employees :	2218 (Approximately)

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	HBL Power System Limited was incorporated in 1986 by Dr. AJ Prasad. The company is a manufacturer of batteries. For the financial year 2017, the company has achieved revenue growth of 9.22% as compared to the previous year along with an average profit margin of 2.53%. The sound financial risk profile of the company is marked by adequate net worth base along with strong debt coverage indicators due to low debt balance sheet profile. The rating takes into account company’s experienced promoters, established track record of operations, continued financial support from the holding company in the form of unsecured loans and diversified revenue profile. The ratings are, however, constrained by the increasing raw material prices and elongated operating cycle. Payments seems to be regular. In view of aforesaid, the company can be considered good 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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Loan : A-
Rating Explanation	Adequate degree of safety and low credit risk.
Date	14.07.2017

Rating Agency Name	CARE
Rating	Short Term Loan : A2+
Rating Explanation	Strong degree of safety and low credit risk.
Date	14.07.2017

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 31-03-2018.

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 10.04.2018

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

INFORMATION DENIED

MANAGEMENT NON-COOPERATIVE: Tel. No.: 91-40-23355575 / 23351934

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, Mahaboob Nagar 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), Mahaboob Nagar 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, Gurugram - 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 31.03.2017

Name :	Mrs. Preeti Khandelwal
Designation :	Director
Address :	8-2-350/5/1, Road No.3, Banjara Hills, Hyderabad - 500034, Telangana, India
Date of Birth/Age :	24.03.1971
Qualification :	B Com, ACS
Experience :	She is a qualified Company Secretary and has expertise in Company Law and FEMA related issues.
Date of Appointment :	02.03.2009
DIN No.:	00027999
Name :	Mr. Aluru Jagadish Prasad
Designation :	Managing Director
Address :	8-2-601, Road # 10, Banjara Hills, Hyderabad - 500034, Telangana, India
Qualification :	B Tech from IIT (Kharagpur); MS in Management from MIT, USA, Doctorate in International Business from Columbia University, USA.
Expertise in specific functional Area :	Overall management of the company with specific focus on product development and promotion of export sales.
Date of Birth :	03.11.1945
Date of Appointment :	01.06.2008
DIN No.:	00057275
Name :	Mr. Ganapati Rao Poruri
Designation :	Director
Address :	H No:2-2-12/2 Flat No:401, Bindu Residency, D D Colony, Hyderabad - 500007, Telangana, India
Date of Appointment :	25.04.2005
DIN No.:	00089685
Name :	Mr. Richa Datta
Designation :	Additional Director
Address :	P 36, Gariahat Road, South Kolkata, Kolkata – 700031, West Bengal, India
Date of Appointment :	15.03.2018
DIN No.:	08084501
Name :	Mr. Sanjiv Singhal
Designation :	Nominee Director
Address :	Flat No. 51, 5th Floor, Seagull, Carmichael Road, Mumbai - 400026, Maharashtra, India
Date of Birth :	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.
Expertise in specific functional Area :	Previously working with Standard Chartered Bank as head of Structured Finance for India and later SE Asia out of Singapore. He has vast banking experience and brings in a good credit judgment. He also spent the first three years of his working life as an entrepreneur wherein he took over an ailing automobile components manufacturing company and turned it around.
Date of Appointment :	14.08.2012
DIN No.:	02408616
Name :	Mr. Mitin Chandanmal Jain
Designation :	Director
Address :	Gundecha Garden, G-Wing, 6th Floor, Flat No. 602, Gas Company Lalbagh Dattaram Khamkar Road, Parel, Mumbai - 400012, Maharashtra, India
Date of Appointment :	23.03.2016
DIN No.:	06390954
Name :	Mr. Ajay Bhaskar Limaye
Designation :	Nominee Director
Address :	G 503 Kumar Padmaja, Behind Gandhi Bhavan Kothrud, Pune - 411038, Maharashtra, India
Date of Birth :	20.05.1969
Qualification :	CFA Charter holder with prior qualification as an Engineer with an MBA in Finance
Expertise in specific functional Area :	Vast experience in the investment industry in India. During this period, he has been involved in managing various types of funds including Private Equity Fund (diversified growth capital), Venture Capital fund, Technology Fund, Infrastructure Fund and Special Situations Fund, besides listed market investments
Date of Appointment :	14.02.2013
DIN No.:	02762738
Name :	Mr. Karipineni Venkata Sriram
Designation :	Additional Director
Address :	9-5 Ramanayya Peta, Kakinada – 533005, Andhra Pradesh, India
Date of Appointment :	07.02.2018
DIN No.:	00073911

KEY EXECUTIVES

Name :	Mr. Manish
Designation :	Accounts Department
Name :	M V S S Kumar
Designation :	Company Secretary
Address :	1-4-880/26, Bank Of Baroda Colony, Gandhi Nagar, Hyderabad - 500080, Telangana, India
Date of Appointment :	15.01.2011
PAN No.:	ALSPM0163F
Name :	Mr. Kavita Prasad Aluru
Designation :	Chief Finance Officer
Address :	8-2-601 Road # 10, Banjara Hills Hyderabad – 500034, Telangana, India
Date of Appointment :	11.08.2016
PAN No.:	ABQPA4116N
Audit Committee :	P Ganapathi Rao – Chairperson M S S Srinath – Member Preeti Khandelwal - Member

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on December 2017

Category of shareholder	No. of fully paid up equity shares held	Shareholding as a % of total no. of shares
(A) Promoter & Promoter Group	156204142	56.35
(B) Public	120990804	43.65
Grand Total	277194946	100.00

Statement showing shareholding pattern of the Promoter and Promoter Group

Category of shareholder	No. of fully paid up equity shares held	Shareholding as a % of total no. of shares
A1) Indian		0.00
Individuals/Hindu undivided Family	19241911	6.94
SATYANARAYANA SUBRAMANI SRINATH MIKKILINENI	1906920	0.69
KAVITA PRASAD ALURU	9422131	3.40
PRASAD JAGADISH ALURU	2425243	0.87
MIKKILINENI ADVAY BHAGIRATH	3917600	1.41
A UMA DEVI	38830	0.01
MIKKILINENI DEEKSHA SRINATH	1531187	0.55
Any Other (specify)	136962231	49.41
BARCLAYS WEALTH TRUSTEES INDIA PRIVATE LIMITED - Mikkilineni Family Private Trust	122000	0.04
BARCLAYS WEALTH TRUSTEES INDIA PRIVATE LIMITED - Aluru Family Private Trust	136840231	49.37
Sub Total A1	156204142	56.35
A2) Foreign		0.00
A=A1+A2	156204142	56.35

Statement showing shareholding pattern of the Public shareholder

Category & Name of the Shareholders	No. of fully paid up equity shares held	Shareholding % calculated as per SCRR, 1957 As a % of (A+B+C2)
B1) Institutions	0	0.00
Mutual Funds/	17258429	6.23
HDFC TRUSTEE COMPANY LIMITED - HDFC PRUDENCE FUND	9098229	3.28
IDFC STERLING EQUITY FUND	7200000	2.60
Venture Capital Funds	26842240	9.68
Foreign Venture Capital Investors	28983735	10.46
Foreign Portfolio Investors	128805	0.05
Financial Institutions/ Banks	283167	0.10
Sub Total B1	73496376	26.51
B2) Central Government/ State Government(s)/ President of India	0	0.00
B3) Non-Institutions	0	0.00
Individual share capital upto INR 0.200 Million	33819700	12.20
Individual share capital in excess of INR 0.200 Million	2576340	0.93
NBFCs registered with RBI	17200	0.01
Any Other (specify)	11081188	4.00
Trusts	1000	0.00
NRI	2526721	0.91
Clearing Members	589301	0.21
NRI – Non- Repat	822105	0.30
Bodies Corporate	7142061	2.58
Sub Total B3	47494428	17.13
B=B1+B2+B3	120990804	43.65

BUSINESS DETAILS

Line of Business :

Manufacturing of different types of batteries including lead acid, niCad, silver zinc, lithium and railway and defence electronics, solar photovoltaic modules and other products. The company is also engaged in service activities related to the above products. [Registered Activity]

Products / Services :

NIC Code	Product Description
272	Manufacture of batteries

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

2218 (Approximately)

Bankers :

• Axis Bank Limited
• ICICI Bank Limited
• HDFC Bank Limited, HDFC Bank Housesenapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India

• State Bank of India, CAG Branch, Ozone, 2nd Floor, 6-3-669, Punjagutta Main Road, Hyderabad – 500082, Telangana, India

Bank Name	IDBI Bank Limited
Branch	Specialised Corporate Branch, Corporate Banking Group, Chapel Road, Hyderabad – 500001, Telangana, India
Person Name (With Designation)	--
Contact Number	--
Name of Account Holder	--
Account Number	--
Account Since (Date/Year of Account Opening)	--
Average Balance Maintained (If Possible)	--
Credit Facilities Enjoyed (If any)	--
Account Operation	--
Remarks (If any)	--

Facilities :

Secured Loan	31.03.2017 (INR in Million)	31.03.2016 (INR in Million)
LONG-TERM BORROWINGS
Secured loans from banks
IDBI Bank Limited	125.020	83.340
HDFC Bank Limited	100.000	200.000
HDFC Bank Limited - against vehicles	1.809	2.493
SHORT-TERM BORROWINGS
Loans repayable on demand from banks
State Bank of India	1269.111	1313.942
State Bank of Hyderabad	0.000	214.319
IDBI Bank Limited	186.773	589.505
ICICI Bank Limited	684.046	496.912
Axis Bank Limited	448.201	459.279
Buyers Credit from Banks	190.970	55.602
		3129.559
Total	3005.930	3415.392

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.

19.5 Term loan from IDBI and HDFC :

a) The capex term loan of INR 250.000 million is sanctioned by IDBI Bank for setting up of spun concrete poles unit with a project cost of INR 335.000 million with a capacity of 100000 poles p.a. at Narsaraopet, Guntur District, Andhra Pradesh. The loan is secured by pari passu first charge on the entire property, plant and equipment of the company both present and future. This loan is also guaranteed by CMD, spouse of CMD, director, and CFO in their personal capacity.

b) HDFC term loan II of INR 200.000 million is towards the refinancing of capital expenditure of the company. The loan is secured by a first charge on the entire property, plant and equipment of the company both present and future. This loan is also guaranteed by CMD, director and CFO in their personal capacity

HDFC bank - vehicle loan

The term loans are secured by exclusive hypothecation of vehicles acquired through execution of demand promissory notes and are repayable by equated monthly installments (EMIs') as per the loan schedule sanctioned by the bank.

Auditors :
Name :	Rao and Kumar Chartered Accountants
Address :	10-19-15, Soudamani, Seripuram, CBM Compound, Visakhapatnam-530003, Andhra Pradesh, India
Tel No.:	91-891-2755327/ 2759369
Fax No.:	91-891-2738554
Email:	contact@raoandkumar.org
Memberships :	Not Available
Collaborators :	Not Available
Subsidiaries:	SCIL Infracon Private Limited HBL Germany, GMBH HBL America HBL Suntech LLP
Joint venture:	Gulf Batteries Company Limited, Kingdom of Saudi Arabia
Joint venture company:	Gulf Batteries Company Limited, KSA
Controlled companies:	Kairos Engineering Limited, Hyderabad
Associate:	Naval Systems and Technologies Private Limited Guided Missile Engineering India Private Limited

CAPITAL STRUCTURE

As on 31.03.2017

Authorised Capital :

No. of Shares	Type	Value	Amount
312500000	Equity Shares	INR 1/- each	INR 312.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
277194946	Equity Shares	INR 1/- each	INR 277.195 Million

Scheme of arrangement and amalgamation (business combination) of transferor company Beaver Engineering and Holdings Private Limited (BEHPL) (holding company) with transferee company HBL Power Systems Limited (HBL) (subsidiary company) from the appointed date April 1, 2016:

The board of directors in their meetings held on March 23, 2016 approved a scheme of arrangement and amalgamation of the holding company BEHPL with its subsidiary company HBL from the appointed date April 1, 2016. The company’s petition for amalgamation was allowed by the Hon’ble NCLT, Hyderabad bench on May 9, 2017. As per the said scheme, the authorized share capital of HBL shall automatically stands increased and reclassified by the authorized share capital of BEHPL amounting to INR 12.500 million consequently, the authorized share capital of HBL was increased and reclassified as 312500000 equity share of INR 1/- each i.e. INR 312.500 million.

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

Equity Shares	31.03.2017
	No. of Shares	INR in Million
At the beginning of the period	253000000	253.000
Additions during the period on account of business combination	174094389	174.094
Deductions during the period on account of business combination	149899443	149.899
Outstanding at the end of the period	277194946	277.195

Addition to and cancellation from issued, subscribed and paidup capital:

i) Addition to paid up capital - As at the appointed date viz., 01.04.2016, the paid up capital of the BEHPL was INR 5.193 million consisting of 304726 equity shares of INR 10/- each (INR 3.047 million), 77163 compulsorily convertible preferential shares (CCPS) of INR 10/- each (INR 0.772 million) and 68726 optionally convertible redeemable preferential shares (OCRPS) of INR 20/- each (INR 1.375 million). In terms of the scheme of amalgamation, upon amalgamation HBL issued equity shares, credited as fully paid up, to the members of BEHPL, holding fully paid up equity shares and preference shares in the following proportion:

a) 3883 fully paid equity shares of INR 1/- each of HBL issued as fully paid up for every 10 equity shares of INR 10/- fully paid up held in BEHPL i.e. issued 118325104 equity shares of INR 1/- each of HBL for 304726 equity shares of INR 10/- each of BEHPL.

b) 3753 fully paid equity share of INR 1/- each HBL issued as fully paid up for every 10 CCPS of INR 10/- each fully paid held in BEHPL i.e issued 289,59273 equity share of INR 1/- each of HBL for 77163 CCPS of INR 10/- each BEHPL.

c) 3901 fully paid equity shares of INR 1/- each of HBL issued for every 10 OCRPS of INR 20/- fully paid up held in BEHPL, i.e. issued 26810012 equity shares of INR 1/- each of HBL for 68726 OCPS of INR 20/- of BEHPL.

Thus HBL issued a total of 174094389 equity shares of INR 1/- each to the members of BEHPL in proportion to their holding and the same is shown as addition to paid up capital during the year.

For the year ended on March 31, 2017

ii) Cancellation of shares - as at the appointed date viz., 01.04.2016, BEHPL was holding 149899443 equity shares of INR 1/- each in the equity share capital of HBL and as per the scheme of amalgamation, the said investment held by BEHPL stands cancelled and accordingly the same is shown as reduction during the year in Note 17.2

Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of INR 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.

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

Name of the shareholder	31.03.2017
	No. of Shares	% holding in the Class
Equity shares of INR 1 each fully paid
Promoter and promoter group
Beaver Engineering and Holdings Private Limited	--	--
Dr. A J Prasad	--	--
Barclays Wealth Trustees (India) Private Limited -Aluru family Private Trust	136840,231	49.37
Public
BanyanTree Growth Capital LLC	28983735	10.46
Oman India Joint Investment Fund Management Company Private Limited	26842240	9.68

FINANCIAL DATA

[all figures are in INR Million]

ABRIDGED BALANCE SHEET [STANDALONE]

SOURCES OF FUNDS	31.03.2017	31.03.2016	31.03.2015
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	277.195	253.000	253.000
(b) Reserves & Surplus	7116.842	5987.483	5623.338
(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)	7394.037	6240.483	5876.338
(3) Non-Current Liabilities
(a) long-term borrowings	259.245	1042.350	1987.001
(b) Deferred tax liabilities (Net)	111.690	147.007	172.616
(c) Other long term liabilities	16.777	22.369	0.000
(d) long-term provisions	21.349	19.918	19.789
Total Non-current Liabilities (3)	409.061	1231.644	2179.406
(4) Current Liabilities
(a) Short term borrowings	4300.915	4154.943	4266.726
(b) Trade payables	1654.568	1636.824	1821.233
(c) Other current liabilities	816.316	1024.364	1395.824
(d) Short-term provisions	172.074	166.060	198.423
Total Current Liabilities (4)	6943.873	6982.191	7682.206
TOTAL	14746.971	14454.318	15737.950
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3975.809	3900.760	4217.743
(ii) Intangible Assets	188.323	245.190	222.079
(iii) Capital work-in-progress	81.649	200.862	155.898
(iv) Intangible assets under development	251.997	279.841	337.931
(b) Non-current Investments	84.165	146.502	227.498
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	134.375
(e) Other Non-current assets	293.650	306.307	24.322
Total Non-Current Assets	4875.593	5079.462	5319.846
(2) Current assets
(a) Current investments	0.131	0.000	0.000
(b) Inventories	4043.619	3926.594	5092.589
(c) Trade receivables	4886.687	4417.637	4087.675
(d) Cash and cash equivalents	225.978	307.798	461.142
(e) Short-term loans and advances	0.000	0.000	776.698
(f) Other current assets	714.963	722.827	0.000
Total Current Assets	9871.378	9374.856	10418.104
TOTAL	14746.971	14454.318	15737.950

PROFIT & LOSS ACCOUNT [STANDALONE]

	PARTICULARS	31.03.2017	31.03.2016	31.03.2015
	SALES
	Income	14072.186	12883.980	13300.703
	Other Income	172.051	126.397	166.052
	TOTAL	14244.237	13010.377	13466.755
Less	EXPENSES
	Cost of Materials Consumed	8894.718	7666.661	7525.290
	Purchases of Stock-in-Trade	58.809	34.933	42.082
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(119.548)	51.717	639.264
	Employees benefits expense	964.495	1000.107	948.230
	Other expenses	2973.222	2778.282	2691.358
	Exceptional Items	27.903	89.616	150.382
	TOTAL	12799.599	11621.316	11996.606
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	1444.638	1389.061	1470.149
Less	FINANCIAL EXPENSES	462.168	683.566	706.602
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	982.470	705.495	763.547
Less	DEPRECIATION/ AMORTISATION	481.775	503.540	510.385
	PROFIT/ (LOSS) BEFORE TAX	500.695	201.955	253.162
Less	TAX	144.553	123.757	106.955
	PROFIT/ (LOSS) AFTER TAX	356.142	78.198	146.207
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	1739.397	1732.337	1781.224
	Freight	5.386	4.480	7.772
	TOTAL EARNINGS	1744.783	1736.817	1788.996
	IMPORTS
	Raw Materials	2302.633	1782.507	2247.984
	Capital items/ equipment	1.183	0.000	2.134
	TOTAL IMPORTS	2303.816	1782.507	2250.118
	Earnings / (Loss) Per Share (INR)	1.16	0.16	0.58

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	204.131	260.590	579.991
Cash generated from operations	505.923	1775.386	1002.559
Net Cash flows from operating activities	423.808	1614.815	948.857

QUARTERLY RESULTS

PARTICULARS	30.06.2017	30.09.2017	31.12.2017
Unaudited	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	3535.860	4420.670	4139.910
Total Expenditure	3244.380	4040.430	3771.950
PBIDT (Excl OI)	291.480	380.240	367.960
Other Income	41.090	32.040	31.800
Operating Profit	332.570	412.280	399.760
Interest	108.980	97.340	104.060
Exceptional Items	(4.980)	(36.050)	(17.160)
PBDT	218.610	278.890	278.530
Depreciation	113.750	113.000	112.540
Profit Before Tax	104.860	165.890	165.990
Tax	30.000	56.600	78.270
Provisions and contingencies	NA	NA	NA
Profit After Tax	74.860	109.290	87.730
Extraordinary Items	NA	NA	N
Prior Period Expenses	NA	NA	NA
Other Adjustments	NA	NA	NA
Net Profit	74.860	109.290	87.730

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days [Sundry Debtors / Income * 365]	126.75	125.15	112.17
Account Receivables Turnover [Income / Sunday Debtors]	2.88	2.92	3.25
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	67.45	77.57	87.84
Inventory Turnover (Operating Income / Inventories)	0.36	0.35	0.29
Asset Turnover (Operating Income / Net Fixed Assets)	0.32	0.30	0.30

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.50	0.57	0.65
Debt Equity Ratio (Total Liability / Networth)	0.64	0.87	1.16
Current Liabilities to Networth (Current Liabilities / Net Worth)	0.94	1.12	1.31
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.61	0.74	0.84
Interest Coverage Ratio (PBIT / Financial Charges)	3.13	2.03	2.08

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
PAT to Sales ((PAT / Sales) * 100)	%	2.53	0.61	1.10
Return on Total Assets ((PAT / Total Assets) * 100)	%	2.42	0.54	0.93
Return on Investment (ROI) ((PAT / Networth) * 100)	%	4.82	1.25	2.49

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	1.42	1.34	1.36
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	0.84	0.78	0.69
G-Score Ratio Financial (Networth / Total Assets)	0.50	0.43	0.37
G-Score Ratio Debt (Debts / Equity Capital)	17.19	21.57	27.01
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	1.42	1.34	1.36

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

FINANCIAL ANALYSIS

[all figures are INR Million]

DEBT EQUITY RATIO

Particular	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Share Capital	253.000	253.000	277.195
Reserves & Surplus	5623.338	5987.483	7116.842
Net worth	5876.338	6240.483	7394.037
Long Term borrowings	1987.001	1042.350	259.245
Short Term borrowings	4266.726	4154.943	4300.915
Current Maturities of Long term debt	579.991	260.590	204.131
Total borrowings	6833.718	5457.883	4764.291
Debt/Equity ratio	1.163	0.875	0.644

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	13300.703	12883.980	14072.186
		(3.133)	9.222

NET PROFIT MARGIN

Net Profit Margin	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	13300.703	12883.980	14072.186
Profit	146.207	78.198	356.142
	1.10%	0.61%	2.53%

ABRIDGED BALANCE SHEET – (CONSOLIDATED)

SOURCES OF FUNDS	31.03.2017	31.03.2016
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	277.195	253.000
(b) Reserves & Surplus	7014.044	5838.143
(c) Money received against share warrants	0.000	0.000
(2) Non-controlling Interest	(15.392)	(12.3370
Total Shareholders’ Funds (1) + (2)	7275.847	6078.806
(3) Non-Current Liabilities
(a) long-term borrowings	281.206	1068.047
(b) Deferred tax liabilities (Net)	116.979	147.119
(c) Other long term liabilities	16.777	22.369
(d) long-term provisions	21.349	19.918
Total Non-current Liabilities (3)	436.311	1257.453
(4) Current Liabilities
(a) Short term borrowings	4300.915	4154.942
(b) Trade payables	1639.654	1646.674
(c) Other current liabilities	840.513	1045.064
(d) Short-term provisions	172.074	166.059
Total Current Liabilities (4)	6953.156	7012.739
TOTAL	14665.314	14348.998
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3979.885	3906.885
(ii) Intangible Assets	188.923	247.139
(iii) Capital work-in-progress	81.649	200.862
(iv) Intangible assets under development	251.997	279.841
(v) Assets held for disposal	0.000	9.308
(b) Non-current Investments	78.382	76.952
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	315.031	327.701
Total Non-Current Assets	4895.867	5048.688
(2) Current assets
(a) Current investments	0.130	0.000
(b) Inventories	4077.174	3958.799
(c) Trade receivables	4710.337	4266.171
(d) Cash and cash equivalents	256.906	340.508
(e) Short-term loans and advances	0.000	0.000
(f) Other current assets	724.900	734.832
Total Current Assets	9769.447	9300.310
TOTAL	14665.314	14348.998

PROFIT & LOSS ACCOUNT– (CONSOLIDATED)

	PARTICULARS	31.03.2017	31.03.2016
	SALES
	Income	14144.643	12985.705
	Other Income	176.359	133.214
	TOTAL	14321.002	13118.919
Less	EXPENSES
	Cost of Materials Consumed	8916.106	7666.649
	Purchases of Stock-in-Trade	58.809	34.933
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(120.896)	97.526
	Employees benefits expense	996.788	1038.083
	Other expenses	3007.802	2803.590
	Exceptional Items	(25.018)	22.506
	share in profit of associate/ joint venture	(3.717)	(5.221)
	TOTAL	12829.874	11658.066
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	1491.128	1460.853
Less	FINANCIAL EXPENSES	462.682	684.184
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	1028.446	776.669
Less	DEPRECIATION/ AMORTISATION	484.968	506.825
	PROFIT/ (LOSS) BEFORE TAX	543.478	269.844
Less	TAX	142.024	121.529
	PROFIT/ (LOSS) AFTER TAX	401.454	148.315
	Earnings / (Loss) Per Share (INR)
	Basic	1.35	0.39
	Diluted	1.35	0.39

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	No
8	Designation of contact person	No
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

PERFORMANCE REVIEW 2016-17

FY 2016-17 has been a fruitful year for the company. Revenue from operations showed an increase of 9.6% over last year while Profit before Tax (PBT) showed an increase of 247%. Efforts were directed towards strengthening our capabilities as markets became competitively challenging. Improved operational efficiencies coupled with cost

savings and reduction in cost of borrowings have resulted in considerable growth in gross margins and profit after tax (PAT). The company is well prepared to address the challenges posed and is geared up to maintain growth momentum.

MANAGEMENT DISCUSSION AND ANALYSIS

ECONOMIC OVERVIEW

India has emerged as the fastest growing major economy in the world as per the Central Statistics Organisation (CSO) and International Monetary Fund (IMF). Favourable government reforms and stringent fiscal regime have supported the accelerated growth of the Indian economy since 2014. Despite few short-term disruptive policy initiatives and geo-political issues in large global economies, India’s GDP grew by 7.1% in fiscal 2016-17 demonstrating the fact that India’s economic fundamentals continue to be strong.

The growth momentum is expected to rise, driven by the Government’s focus on Make-in-India and Digital India initiatives; growth simulation through investments in infrastructure; providing affordable housing to economically weaker sections; employment generation etc. This growth momentum will be ably assisted by the Government’s policy initiatives in areas such as simplification of taxation (GST), attracting foreign direct investment (FDI), and the ease of doing business, among others.

Other major factors helping India stay as a bright spot in the global economic and scape include the subdued global oil price that is expected to have a positive impact on the country’s import bill, a well-regulated monetary policy by the Reserve Bank to stabilise prices and an improving fiscal condition. The Government’s endeavour to drive a bigger as well as cleaner GDP is expected to augur well for the economy in the medium and long terms.

However, the key concern for the country is the health of the banking system, which continues to battle with rising bad loans and heightened corporate vulnerabilities in certain key sectors of the economy. Besides, the firming up of crude oil prices, reduced commodity exports and almost stagnantnon-commodity exports could impact trade and current account deficits

OUTLOOK

India is expected to be the third largest consumer economy, as its consumption may triple to US$ 4 trillion by 2025, owing to a shift in consumer behavior and expenditure pattern, according to a Boston Consulting Group (BCG) report; and is estimated to surpass USA to become the second largest economy in terms of purchasing power parity (PPP) by the year 2040, according to a report by Price water house Coopers. Also, the Prime Minister, Mr. Narendra Modi has stated that India has become the world’s fastest growing large economy, and is expected to grow five-fold by 2040, owing to a series of policy measures.

BUSINESS OVERVIEW

Subject is a listed Indian company, in business since 1977, with a focus on engineered products and services. The Company’s business selection strategy has been pivoted on the ability to identify technology gaps in India which could be filled in by it through ‘indigenous efforts’ – truly living up to the Make in India drive, since four decades.

The first products selected and successfully developed were Aircraft batteries - eventually leading to HBL offering the world’s widest range of specialised batteries. The Company leveraged the expertise gained in the battery business to capitalise on new opportunities. In doing so, the Company moved into new businesses and markets that use its batteries, such as industrial electronics, defense electronics, and railway electronics.

HBL re-organised its business into strategic business units – Batteries, Electronics and Defence. Battery revenues accounted for 80% of overall revenues in 2016-17.

UNSECURED LOANS:

Particulars	31.03.2017 (INR in Million)	31.03.2016 (INR in Million)
LONG-TERM BORROWINGS
Loans from others
Deferred payment liability - interest free sales tax loan	32.416	41.282
Loan from related party - holding company	0.000	712.760
Long term maturities of finance lease obligations - from HPFSIPL	0.000	0.755
Loan from HPFSIPL - against equipment	0.000	1.720
SHORT-TERM BORROWINGS
Loans repayable on demand from related parties	0.000	0.000
Inter Corporate Deposit from Holding Company	0.000	66.500
Loans from Directors	72.100	72.100
Other loans from banks
Purchase Bill Discounting from Kotak Mahindra Bank Limited	444.146	240.358
Purchase Bill Discounting from IDBI Bank Limited	611.154	450.142
Sale Bills (LC backed) Discounted with SBI	272.625	96.284
Sale Bills (Clean) Discounted with Yes Bank Limited	121.789	0.000
HDFC Short Term Loan	0.000	100.000
Total	1554.230	1966.978
Note: LONG-TERM BORROWINGS a ) Deferred payment liability - interest free sales tax loan (IFST): IFST loan represents the sales tax payable by the company given as loan by state government under a scheme and is to be repaid without interest after 14 years from the date of availment. 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. Pursuant to requirement under Ind AS - 109 on financial instruments and in view of the option exercised under Ind AS – 101 on first time adoption of Ind AS, un-winding of interest using effective interest rate was made and the deferred government grant carved out, from the said loan, is being amortized in equal installments over the remaining repayment period of the IFST loan. 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 obligations 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. 19.7 As on the balance sheet date, there were no continuing defaults in repayment of borrowings and interest.

INDEX OF CHARGES:

SNo	SRN	Charge Id	Charge Holder Name	Date of Creation	Date of Modification	Date of Satisfaction	Amount	Address
1	G48835441	10564134	IDBI Bank Limited	23/03/2015	29/06/2017	-	250000000.0	Specialised Corporate BranchCorporate Banking Group, Chapel RoadHyderabadTG500001IN
2	G49259005	10550947	HDFC BANK LIMITED	16/01/2015	30/06/2017	-	200000000.0	HDFC BANK HOUSESENAPATI BAPAT MARGLOWER PAREL WMumbaiMH400013IN
3	B87600219	10450609	YES BANK LIMITED	30/08/2013	28/09/2013	-	300000000.0	9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA,DR. ANNIE BESANT ROAD, WORLI,MUMBAIMH400018IN
4	G48688873	90140233	State Bank of India	06/05/2002	29/06/2017	-	8600000000.0	CAG Branch, OZONE, 2nd Floor6-3-669, Punjagutta Main RoadHyderabadTG500082IN
5	Y10233241	90140436	DCL FINANCE LTD	31/08/1998	-	-	288756.0	SOMAJIGUDAHYDERABADAPIN
6	Y10233240	90140435	DCL FINANCE LTD	06/08/1998	-	-	871823.0	SOMAJIGUDAHYDERABADAPIN
7	Y10233239	90140434	DCL FINANCE LTD	17/07/1998	-	-	1031344.0	6-3-569/1; DCL CHAMBERS OPP RTA OFFICESOMAJIGUDAHYDERABADAPIN
8	Y10233238	90140433	DCL FINANCE LTD	11/05/1998	-	-	1231493.0	6-3-569/1; DCL CHAMBERS OPP RTA OFFICESOMAJIGUDAHYDERABADAPIN
9	Y10233237	90140432	DCL FINANCE LTD	18/04/1998	-	-	723131.0	6-3-569/1; DCL CHAMBERS OPP RTA OFFICESOMAJIGUDAHYDERABADAPIN
10	C60107471	10263361	ICICI BANK LIMITED	08/01/2011	20/02/2015	23/07/2015	1000000000.0	LANDMARKRACE COURCE CIRCLEALKAPURIBARODAGJ390015IN

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31^ST DECEMBER 2017

(INR In Million)

Particulars	quarter ended	quarter ended	Nine months ended
	31.12.2017	30.09.2017	31.12.2017
	Unaudited	Unaudited	Unaudited
INCOME FROM OPERATIONS
Sales/ Income from operation	4139.907	4420.673	12096.443
Other Operating Income	31.797	32.041	104.931
Total Income from Operations	4171.704	4452.714	12201.374
EXPENSES
Cost of materials consumed	2635.060	2690.519	7664.586
Purchase of stock in trader	33.860	34.214	69.868
Changes in inventories of finished goods and work-in-progress	62.018	235.005	(68.403)
Excise duty on sales	--	--	311.851
Employee benefits expense	228.896	240.946	699.889
Finance Costs	104.061	97.339	310.382
Depreciation and Amortization expenses	112.540	113.002	339.289
Other expense	812.107	839.751	2378.972
Total Expenses	3988.542	4250.776	11706.434
Profit/(Loss) from Ordinary Activities before Net Exceptional income/ (Expenditure)	183.162	201.938	494.940
Less : Exceptional income	17.163	36.053	58.197
Profit / (Loss) before Tax	165.999	165.885	436.743
Tax Expense:
- Current Tax	87.500	67.000	195.000
- Deferred Tax (Assets/Liability	(10.532)	(10.532)	(31.596)
- Income Tax relating to previous years	1.302	0.126	1.428
Profit / (Loss) after Tax	87.729	109.291	271.911
Other Comprehensive Income
Items that will not be reclassified to profit and loss
Remeasurment of defined Benefit plans	(10.095)	(10.095)	(30.285)
Income Tax	3.532	3.532	10.596
Total Comprehensive Income for the period	74.102	95.664	231.030
Paid-up Equity Share Capital (Face value INR 10/- per share)	277.195	277.195	277.195
Reserves (excluding Revaluation Reserve)
Earnings per Share (EPS) – INR
Basic and Diluted EPS (in INR)	0.27	0.35	0.83

SEGMENT-WISE REVENUE, RESULT, ASSETS AND LIABILITIES

(INR In Million)

Sr. No.	Particular	quarter ended	quarter ended	Nine months ended
		31.12.2017	30.09.2017	31.12.2017
		Unaudited	Unaudited	Unaudited
1.	Segment Revenue
	Batteries	3460.992	3254.914	9950.866
	Electronics	233.946	762.012	1095.189
	All Other Segments	438.335	421.685	1076.949
	Total	4133.273	4438.611	12123.004
	Less: Intersegment Revenue	(6.634)	17.938	26.561
	Sales/ Income from Operations	4139.907	4420.673	12096.443
2.	Segment Result
	Batteries	347.101	387.346	1081.047
	Electronics	19.368	42.065	3.833
	All Other Segments	(5.505)	(32.998)	(10.722)
	Total	360.964	396.413	1074.158
	Less : i. Interest	104.061	97.339	310.382
	ii. Exceptional Items – (Income)/ Expenses	17.163	36.053	58.197
	iii. All other Segments Expenditure net of	105.538	129.177	373.767
	iv. All other segments income	31.797	32.041	104.931
	Total Profit/(Loss) before tax	165.999	165.885	436.743
3.	Segment Assets
	Batteries	10185.318	9909.984	10185.318
	Electronics	1534.326	1912.556	1534.326
	All Other Segments	2510.171	2552.335	2510.171
		14229.815	14374.875	14229.815
	Segment Liabilities
	Batteries	1844.238	1776.139	1844.238
	Electronics	297.976	518.408	297.976
	All Other Segments	4545.942	4612.769	4545.942
	Total Segment Liabilities	6688.156	6907.316	6688.156

Note:

1. The above financial results were reviewed by the Audit Committee in its meeting held on February 7, 2018 and approved by the Board of Directors at the meeting held on February 7, 2018 and subjected to Limited Review by the Statutory Auditors. 

2. Post the applicability of GST with effect from July 1, 2017, Sales are required to be disclosed net of GST. Accordingly, the Sales figures for the quarter and nine months ended December 31, 2017 are not comparable with the previous periods presented in the results. 

3. Figures of the previous quarters / periods have been regrouped, wherever necessary.

CONTINGENT LIABILITIES:

(INR in million)

PARTICULARS	31.03.2017	31.03.2016
i) Contingent liabilities not provided for:
a) Claims against the company not acknowledged as debts towards :
Excise duty	65.884	74.353
Sales tax	25.833	58.972
Custom duty	49.170	48.870
Service tax	0.000	0.851
Income tax	6.508	6.508
Property tax	13.425	2.764
Fuel surcharge adjustment (FSA)	14.816	13.879
Enhancement of land cost	16.844	16.844
Erstwhile promoters of SCIL Infracon Private Limited	18.831	18.831
Others	0.950	0.950
b) Un-expired guarantees issued on behalf of the company by banks for which the company gave counter guarantees	1403.671	1495.622
ii) Commitments:
a) Estimated amount of contracts remaining to be executed on capital account and not provided for	63.773	73.713
b) Other commitments:
Legal undertakings (LUTs) given to custom’s authorities for clearing the imports at nil / concessinal rate of duty	12.484	145.107

FIXED ASSETS

· Land – Freehold

· Land – Leasehold

· Buildings – Factory

· Buildings – Others

· Plant & Machinery

· Office Equipment

· Furniture & Fixtures

· Assets Under Finance Lease

· Vehicles

· Technical Library

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	INR
US Dollar	1	INR 64.92
UK Pound	1	INR 91.49
Euro	1	INR 79.68

INFORMATION DETAILS

Information Gathered by :	SVT
Analysis Done by :	PRY
Report Prepared by :	SUJ

SCORE FACTORS

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

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.