MIRA INFORM REPORT

Report Date :

05.04.2011

IDENTIFICATION DETAILS

Name :	U M CABLES LIMITED

Formerly Known As :	PASUPATI TUBES LIMITED

Registered Office :	2A, Shakespear Sarani, P S Shakespear Sarani, Kolkata 700071, West Bengal

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	07.07.1987

Com. Reg. No.:	21-091221

CIN No.: [Company Identification No.]	U26932WB1987PLC091221

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Manufacturer of Jelly Filled Copper Cables and Optical Fibre Cables

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 1920000

Status :	Satisfactory

Payment Behaviour :	Usually Correct

Litigation :	Clear

Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. 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 – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

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

INFORMATION PARTED BY

Name :	Mr. Ambrish Basu
Designation :	Company Secretary
Contact No.:	91-33-39800414

LOCATIONS

Registered Office :	2A, Shakespear Sarani, P S Shakespear Sarani, Kolkata 700071, West Bengal, India
Tel. No.:	91-33-39800300
Fax No.:	91-33-39800400
E-Mail :	ambarish_basu@ushamartin.co.in
Location :	Rented

Branches :	Located at: New Delhi Mumbai

DIRECTORS

AS ON 26.07.2010

Name :	Dr. Purandar Bhattacharya
Designation :	Director
Date of Birth/Age :	04.08.1946
Date of Appointment :	29.03.2001

Name :	Mr. Pravin Kumar Jain
Designation :	Director
Date of Birth/Age :	15.01.1954
Date of Appointment :	27.03.2010

Name :	Mr. Ashok Kumar Gawari
Designation :	Director
Date of Birth/Age :	15.09.1951
Date of Appointment :	05.01.2009

Name :	Mr. Ashok Kumar Somani
Designation :	Director
Date of Birth/Age :	09.08.1954
Date of Appointment :	08.03.1995

KEY EXECUTIVES

Name :	Mr. Ambarish BAsu
Designation :	Company Secretary
Date of Birth/Age :	06.03.1976
Date of Appointment :	07.08.2006

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 26.07.2010

Names of Equity Shareholders	No. of Shares
Usha Martin Limited, Kolkata, West Bengal	11129620
G D Lakhotia	10
Ashok Kumar Somani	10
Rakesh Sinha	2
G S Rathi	10
P K Bankia	5
Kalian Chatterjee	3
Total	11129660


Names of Preference Shareholders
Usha Martin Limited, Kolkata, West Bengal	2900000
Total	2900000

AS ON 26.07.2010

Equity Share Breakup		Percentage of Holding
Category
Bodies corporate		99.99
Other top fifty shareholders		0.01
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Jelly Filled Copper Cables and Optical Fibre Cables

Products :

Item Code No.	Product Description
8544.90	Jelly Filled Copper Cables
8544.70	Optical Fibre Cables

Underground Optical Fiber Cable (Armoured / Unarmoured)
Aerial Copper Cable

Exports :

Products :

Jelly Filled Copper Cables and Optical Fibre Cables

Countries :

Bangladesh, Bhutan, Kenya, Mauritius, Nepal, Oman, UAE, UK, Yemen

Imports :

Products :

Raw Materials

Countries :

Japan, Korea, China

Terms :

Selling :

Cash, Credit, L/C

Purchasing :

Cash, Credit, L/C

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars

Unit

Installed Capacity

Actual Production

Jelly Filled Telecommunication Cables

LCKM

58.38

10.28

Optical Fibre Cables

Cable KM

34272

30053.25

GENERAL INFORMATION

Customers :

End Users, OEM’s

No. of Employees :

70 (Approximately)

Bankers :

IDBI Bank, Kolkata Main Branch, IDBI House, 44 Shakespeare Sarani, Kolkata 700017, West Bengal, India
Axis Bank, Shakespeare Sarani Branch
Indusind Bank Limited, 24 Park Street, Kolkata 700016, West Bengal, India

Facilities :

SECURED LOAN	31.03.2010 Rs. In Millions
Working Capital Loans from Banks
Cash Credit/Working Capital Demand Loan	96.879
Vehicle Loan from a company	0.226
Total	97.105
NOTES : 1. The Working Capital Loans are secured by hypothecation of the Company's entire stock-in-trade, book debts and other current assets, both present and future. Further, such loans are also secured by equitable mortgage by deposit of title deeds of the immovable properties and hypothecation of movable fixed assets of the company, on second charge basis, subject to prior charges, which may be created in future in respect of any existing / future financial assistance / accomodation obtained / to be obtained by the Company. 2 To be secured by way of hypothecation of vehicle financed.


Banking Relations :	--

Auditors :
Name :	G K Mundhra and Company Chartered Accountant
Address :	84 B, Kankulia Road, Kolkata 700029, West Bengal, India

Holding Company:	Usha Martin Limited, Kolkata, West Bengal CIN No.: L31400WB1986PLC091621

Joint Ventures of Holding Company:	Gustav Wolf Speciality Cords Limited CCL Usha Martin Stretching Systems Limited Penng Usha Martin Wire Limited Dove Airlines Private Limited

Fellow Subsidiary:	Usha Martin International Limited Usha Martin Americas Inc. Usha Martin UK Limited European Management and Marine Corporation Limited EMM Caspian Limited EMM Kazakastan Limited Brunton Wolf Wire Ropes FZCO Usha Siam Steel Industries Public Company Limited Brunton Shaw UK Limited Usha Martin Singapore Pte. Limited Usha Martin Australia Pty Limited De Ruyter Stallkabel BV Usha Martin Power & Resources Limited Usha Martin Vietnam Co Limited Bharat Minex Private Limited Usha Martin West Coast Inc. PT Usha Martin Indonesia

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs. 10/- each	Rs.150.000 millions
3200000	Redeemable Cumulative Preference Shares	Rs. 100/- each	Rs.320.000 millions
	Total		Rs.470.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11129660	Equity Shares (Note 1)	Rs. 10/- each	Rs.111.296 millions
2900000	2% Redeemable Cumulative Preference Shares (Note 2 and 3)	Rs. 100/- each	Rs.290.000 millions
	Total		Rs.401.296 millions

NOTES :

(a) The Equity Shares are held by Usha Martin Limited, the Holding Company and its nominees.

(b) Of the above Equity Shares Rs.11.000 millions have been issued on conversion of loans.

(a) The above 2% Cumulative Preference Shares are redeemable at par as follows:

(i) 400,000 Preference Shares (Previous year 700,000 Preference Shares) at the end of 12th year from the date of allotment (1st December, 2000) with an option of redemption at the end of 5th / 6th year from the date of allotment.

(ii) 800,000 Preference Shares at the end of 12th year from the date of allotment (28th June, 2001) with an option of redemption at the end of 7th year from the date of allotment.

(iii) 100,000 Preference Shares at the end of 12th year from the date of allotment (28th March, 2003) with an option of redemption at the end of 7th year from the date of allotment.

(iv) 1,600,000 Preference Shares at the end of 12th year from the date of allotment (31st May, 2008) with an option of redemption at the end of 6th / 7th year from the date of allotment.

(b) Of the above Preference Shares, 700,000 Shares have been issued on conversion of loans.

3. The Company has redeemed 300,000 Preference Shares of Rs.100/- each out of 700,000 Preference Shares alloted on 1st December, 2000.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		401.296	431.296	271.296
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		79.161	35.750	25.172
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		480.457	467.046	296.468
LOAN FUNDS
1] Secured Loans		97.105	52.365	0.393
2] Unsecured Loans		0.000	40.000	261.348
TOTAL BORROWING		97.105	92.365	261.741
DEFERRED TAX LIABILITIES		63.596	64.818	49.474

TOTAL		641.158	624.229	607.683

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		370.662	414.204	454.566
Capital work-in-progress		0.000	0.244	0.000

INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	177.269	186.921	442.030
	Sundry Debtors	153.035	215.562	314.103
	Cash & Bank Balances	4.316	2.556	28.222
	Other Current Assets	0.401	0.460	0.396
	Loans & Advances	241.093	169.047	168.392
Total Current Assets		576.114	574.546	953.143
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	38.204	71.838	142.024
	Other Current Liabilities	261.527	286.037	657.873
	Provisions	5.887	6.890	0.129
Total Current Liabilities		305.618	364.765	800.026
Net Current Assets		270.496	209.781	153.117

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		641.158	624.229	607.683

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1341.599	2203.477	1890.136
		Other Income	8.582	7.892	6.362
		TOTAL (A)	1350.181	2211.369	1896.498

Less	EXPENSES
		Cost of Materials	1007.753	1766.608	1653.483
		Manufacturing Expenses	177.044	239.532	170.616
		Purchase of General Merchandise	0.198	0.000	13.895
		Increase/(Decrease) in Finished Goods	31.172	92.797	(57.185)
		TOTAL (B)	1216.167	2098.937	1780.809

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		134.014	112.432	115.689

Less	FINANCIAL EXPENSES (D)		17.538	28.874	44.434

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		116.476	83.558	71.255

Less/ Add	DEPRECIATION/ AMORTISATION (F)		43.908	46.165	42.315

	PROFIT BEFORE TAX (E-F) (G)		72.568	37.393	28.940

Less	TAX (H)		21.677	19.954	15.474

	PROFIT AFTER TAX (G-H) (I)		50.891	17.439	13.466

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		30.659	20.085	6.619

Less	APPROPRIATIONS
		Interim Dividend on Preference Shares	6.393	0.000	0.000
		Transfer to Capital Redemption Reserve	30.000	0.000	0.000
		Dividend	0.000	5.865	0.000
		Tax on Dividend	1.086	1.000	0.000
	BALANCE CARRIED TO THE B/S		44.071	30.659	20.085

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	556.232	782.495	NA

	IMPORTS
		Raw Materials	804.374	1157.226	NA
		Stores & Spares	1.045	1.363	NA
	TOTAL IMPORTS		805.419	1158.589	NA

	Earnings Per Share (Rs.)		3.90	0.95	1.21

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.76	0.78	0.71

Net Profit Margin (PBT/Sales)	(%)	5.40	1.69	1.53

Return on Total Assets (PBT/Total Assets}	(%)	7.66	3.78	2.06

Return on Investment (ROI) (PBT/Networth)		0.15	0.08	0.09

Debt Equity Ratio (Total Liability/Networth)		0.97	1.12	3.74

Current Ratio (Current Asset/Current Liability)		1.88	1.57	1.19

LOCAL AGENCY FURTHER INFORMATION

REVIEW OF OPERATION

The Company achieved a gross turnover of Rs.1402.350 millions as against Rs. 2376.588 millions in the previous year. Profit before tax improved to Rs.72.569 millions from Rs. 37.393 millions in the previous year. The gross export turnover of the Company increased to Rs.590.845 millions as compared to Rs.832.821 millions.

REDEMPTION OF SHARES

The Company had redeemed 3,00,000 2% Redeemable Cumulative Preference Shares of Rs.100 each out of the balance in the Profit & Loss Account of the Company.

FIXED ASSETS:

Freehold land
Building
Plant and Machinery
Electrical Installation
Water Treatment and Supply Plant
Computer
Office Equipment
Furniture and Fixtures
Vehicles

FORM 8

This form is for	Modification of charge
Corporate identity number of the company	U26932WB1987PLC091221
Name of the company	U M CABLES LIMITED
Address of the registered office or of the principal place of business in India of the company	2A, Shakespear Sarani, P S Shakespear Sarani, Kolkata 700071, West Bengal, India
Type of charge	Book Debts Movable Property Other – Other Current Assets
Particular of charge holder	IDBI Bank, Kolkata Main Branch, IDBI House, 44 Shakespeare Sarani, Kolkata 700017, West Bengal, India Email: s.chatterjee@idbi.co.in
Nature of description of the instrument creating or modifying the charge	Joint Deed of Hypothecation executed on 3rd March, 2010
Date of instrument Creating the charge	03.03.2010
Amount secured by the charge	Rs. 1200.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Terms of Repayment No fixed schedule of repayment, the amount shall be repayable on demand. Margin CC/WCDL/STL/EPC/BD/LCBD Raw Materials and Packaging materials --- 25% Stores and Spares --- 25% Stock - in - process ---- 25% Finished Goods ---- 25% Receivable (upto 180 days) ---- 25% Extent and Operation of the charge The charge shall operate as the first pari passu charge on the Current Assets of the Company.
Short particulars of the property charged	Stocks of Raw Materials, Semi Finished and Finished Goods, Stores and Spares including those relating to Plant and Machinery (Consumable Stores and Spares). Bills receivable and Book Debts. All other movables (excluding such movables as may be permitted by the Consortium in their discretion from time to time), both present and future.

AS PER WEBSITE DETAILS

PROFILE:

Subject is a part of the US$ 750 Million Usha Martin Group. Set up in 1952, Usha Martin Group of companies is devoted to excellence and the manufacture of world-class quality products. There product range primarily includes speciality steel, its downstream products and IT/Telecom related products. They are an Indian Multi-National, having manufacturing facilities in India, UK, Thailand and Dubai. In addition, they have own marketing set-ups in Scandinavia, UK, USA, UAE, Singapore, Dubai, Vietnam, South Africa and Bangladesh.

In 1988, Usha Martin Group set up a Jelly Filled Telecom Cable plant at Ranchi, on the east coast of India in technical collaboration with “Kabel Rheydt” formerly known as AEG Kabel, West Germany. Nine years later, in 1997, further expansion and diversification took place. This resulted in the establishment of Subject- a fully owned subsidiary that also manufactures Optical Fibre Cables. Later on, the original Usha Martin manufacturing facility at Ranchi (called Usha Beltron Limited.) relocated to Silvassa enabling it to expand with the growth of business. This state-of-art plant, located at Silvassa, near Mumbai, currently exports 60% of its products to more than 70 destinations across the globe and is focused on achieving even more in the future.

Subject holds Certificate of Recognition as ''Export House'' status issued by Ministry of Commerce and Industry, Government of India. U M Cables has a distinct customer orientation and seeks to enhance satisfaction through world-class and value engineered products. They make there product to all international specifications and also develop product as per the customers requirements. They purchase Optic Fiber from manufacturer of customers choice. At U M Cables they aim to design and sell a product that is customized to specific requirements, one which can be delivered in small quantities (if required), and also one which can be shipped out in the least possible time. There mission thus stands at being recognized by there customers as the most efficient communication cable manufacturer in the world - a goal that they spare no effort to achieve. In fact, there young and skilled team strives for excellence at every stage of the business process.

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 records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.65
UK Pound	1	Rs.71.92
Euro	1	Rs.63.24

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.

MIRA INFORM REPORT

Item Code No.

Product Description

177.269

153.035

4.316

0.401

241.093

576.114

38.204

261.527

5.887

305.618

270.496

3.76

5.40

7.66

0.15

0.97

1.88

Unit