MIRA INFORM REPORT

Report Date :

01.08.2011

IDENTIFICATION DETAILS

Name :	MORGANITE CRUCIBLE (INDIA) LIMITED (August 2006)
Formerly Known As :	GREAVES MORGANITE CRUCIBLE LIMITED
Registered Office :	B- 11, MIDC Industrial Area, Waluj, Aurangabad – 431136, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	13.01.1986
Com. Reg. No.:	038607
Capital Investment / Paid-up Capital :	Rs. 28.000 millions
CIN No.: [Company Identification No.]	L26920MH1986PLC038607
TAN No.: [Tax Deduction & Collection Account No.]	NSKM05236A
Legal Form :	A Public Limited Liability Company. The Company’s Share are listed on stock Exchange.
Line of Business :	Manufacturer of Silicon Carbide and Graphite Crucibles and Accessories.
No. of Employees :	67 Approximately

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 1023696
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. General financial position is good. Trade relations are reported as fair. Business is active. Payments are reported to be 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.

INFORMATION DECLINED BY

Name :	Mr. Goanshyam Rathi
Designation :	Accounts Manager
Date :	30.07.2011

LOCATIONS

Registered Office /Factory :	B- 11, MIDC Waluj, Aurangabad – 431136, Maharashtra, India
Tel. No.:	91-240-254405/ 254406/ 2554835
Mobile No.:	91-240- 2564554
E-Mail :	secrt@mciltd.co.in investors@mciltd.co.in anurag.geete@morganplc.com
Website :	www.morganmms.com
Head Office :	Satam Estate, 3^rd FI, Cardinal Gracious Road, Chakala, Andheri (East), Mumbai - 400099
Branch Office 1 :	407, Meghdoot Building, 94, Nehru Place, New Delhi – 110019
Tel. No.:	91-11-32504052/ 41808696
Fax No.:	91-11-26224011
Email :	Ashish.mehrotra@mciltd.co.in
Branch Office 1 :	C/O Murugappa Morgan Thermal Ceramics Dare House Complex, No.2, N.S.C. Bose Road, Chennai – 600001
Tel. No.:	91-44-25306886
Fax No.:	91-44-25345985
Email :	rq@mciltd.co.in

DIRECTORS

AS ON 31.03.2010

Name :	Mr. James Philip Wright
Designation :	Director
Name :	Mr. Vijay Sabarwal
Designation :	Director
Name :	Mr. Didier Francois Finck
Designation :	Director
Name :	Mr. Stuart Alan Cox
Designation :	Director
Name :	Mr. Baljindar Kumar
Designation :	Director
Name :	Mr. J.P. Wright
Designation :	Director
Name :	Mr. C. Cox
Designation :	Director
Name :	Mr. Sadanand Vasant Shabde
Designation :	Independent Director

KEY EXECUTIVES

Name :	Mr. Anurag Geete
Designation :	Company Secretary
Name :	Mr. N.N. Thakore
Designation :	Company Secretary
Name :	Mr. Goanshyam Rathi
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.06.2011

Category of Shareholder	Total No. of Shares	% of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Bodies Corporate	2,100,000	75.00
Sub Total	2,100,000	75.00
Total shareholding of Promoter and Promoter Group (A)	2,100,000	75.00
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	600	0.02
Sub Total	600	0.02
(2) Non-Institutions
Bodies Corporate	137,949	4.93
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	540,958	19.32
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	11,678	0.42
Any Others (Specify)	8,815	0.31
Non Resident Indians	5,465	0.20
Trusts	3,350	0.12
Sub Total	699,400	24.98
Total Public shareholding (B)	700,000	25.00
Total (A)+(B)	2,800,000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	2,800,000	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Silicon Carbide and Graphite Crucibles and Accessories.

Products :

ITC Code	Product Descriptions
690320.01	Silicon Carbide Crucibles
690320.09	Clay Graphite Crucibles

GENERAL INFORMATION

No. of Employees :

67 Approximately

Bankers :

· AXIS Bank Limited

· HSBC Limited

Facilities :

Rs. In Millions

UNSECURED LOAN	31.03.2010	31.03.2009
Short Term Loan from The Hongkong and Shanghai Banking Corporation Limited [Due within one year Rs. Nil (Previous Year Rs. 20.000 millions)]	0.000	20.000
Bank Overdrafts	0.000	10.000
External Commercial Borrowings from Morganite Crucible Limited, U.K. [includes interest accrued and due amounting to Rs. 0.663 million (Previous Year Rs. 0.718 million)] [GBP 2.200 millions (Previous Year GBP 2.200 million)] [Due within one year Rs. 51.195 million (Previous Year Rs. Nil)] (Repayment of GBP 0.750 million commences from May 1, 2010 in ten monthly installments) (Repayment of GBP 0.850 million commences from June 1, 2011 in five monthly installments) (Repayment of GBP 0.600 million commences from April 1, 2012 in four monthly installments)	150.835	161.648
Total	150.835	191.648

Banking Relations :	--
Auditors :
Name :	Price Waterhouse and Company Chartered Accountant
Subsidiaries:	· Diamond Crucible Company Limited
Fellow Subsidiaries:	· Morganite Crucible Inc., USA · Carl Nolte Sohne GmbH, Germany · Morgan Thermic SAS, France · Morgan Molten Metal System (Suzhou) Company Limited, China · Mkgs. Morgan Carbon, Turkey · Thermal Ceramics South Africa (PTY) Limited · Morganite Brazil LtdA
Ultimate Holding Company:	· The Morgan Crucible Company Plc, U.K.

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs. 10 each	Rs. 50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2800000	Equity Shares	Rs. 10 each	Rs. 28.000 millions

Note :

Of the above, 1,078,000 equity shares are held by Morganite Crucible Limited and 1,022,000 equity shares are held by Morgan Terreassen BV both of which are subsidiaries of The Morgan Crucible Company Plc, the ultimate Holding Company.

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		28.000	28.000	28.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		227.924	159.718	133.100
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		255.924	187.718	161.100
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		150.835	191.648	79.900
TOTAL BORROWING		150.835	191.648	79.900
DEFERRED TAX LIABILITIES		7.857	18.166	0.000
TOTAL		414.616	397.532	241.000
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		274.322	289.192	97.300
Capital work-in-progress		9.057	11.687	68.800
INVESTMENT		49.699	49.698	49.700
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	148.177	136.293	42.500
	Sundry Debtors	95.821	65.390	38.100
	Cash & Bank Balances	18.657	7.476	7.200
	Other Current Assets	0.037	0.009	0.000
	Loans & Advances	61.650	62.183	40.900
Total Current Assets		324.342	271.351	128.700
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	228.018	221.325	0.000
	Other Current Liabilities	2.274	1.435	74.500
	Provisions	12.512	1.636	29.000
Total Current Liabilities		242.804	224.396	103.500
Net Current Assets		81.538	46.955	25.200
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		414.616	397.532	241.000

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales	531.162	298.429	168.100
		Other Income	17.638	35.877	6.200
		TOTAL (A)	548.800	334.306	174.300
Less	EXPENSES
		Cost of Materials	202.727	120.204	63.800
		Manufacturing Expenses	0.000	0.000	27.100
		Increase/(Decrease) in Finished Goods	0.000	0.000	(4.500)
		Office Expenses	205.204	146.984	23.800
		Administrative Expenses	0.000	0.000	6.600
		Excise Duty	0.000	0.000	22.900
		Power & Fuel	0.000	0.000	2.800
		TOTAL (B)	407.931	267.188	142.500
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		140.869	67.118	31.800
Less	FINANCIAL EXPENSES (D)		11.695	10.382	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		129.174	56.736	31.800
Less/ Add	DEPRECIATION/ AMORTISATION (F)		31.733	18.479	5.700
	PROFIT BEFORE TAX (E-F) (G)		97.441	38.257	26.100
Less	TAX (H)		29.235	11.617	8.000
	PROFIT AFTER TAX (G-H) (I)		68.206	26.640	18.100
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		73.726	47.086	NA
	BALANCE CARRIED TO THE B/S		141.932	73.726	NA
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	346.748	165.515	NA
	IMPORTS
		Raw Materials	73.704	99.642	NA
		Capital Goods	4.603	85.371	NA
	TOTAL IMPORTS		78.307	185.013	NA
	Earnings Per Share (Rs.)		24.36	9.51	--

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010	31.03.2011
	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	174.940	179.600	142.270	192.360
Total Expenditure	134.710	138.110	138.600	142.360
PBIDT (Excl OI)	40.230	41.490	3.670	50.000
Other Income	0.620	0.090	13.460	(13.060)
Operating Profit	40.850	41.580	17.130	36.940
Interest	2.260	2.090	1.760	1.490
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	28.590	39.490	15.370	35.450
Depreciation	8.080	8.300	9.560	8.760
Profit Before Tax	30.510	31.190	5.810	26.690
Tax	12.590	10.570	5.430	16.120
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	17.920	20.630	0.380	10.560

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	12.42	7.96	10.38
Net Profit Margin (PBT/Sales)	(%)	18.34	12.81	15.52
Return on Total Assets (PBT/Total Assets}	(%)	16.27	6.82	11.54
Return on Investment (ROI) (PBT/Networth)		0.38	0.20	0.16
Debt Equity Ratio (Total Liability/Networth)		1.56	2.31	1.13
Current Ratio (Current Asset/Current Liability)		1.33	1.20	1.24

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

Rs. In Millions

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors	228.018	221.325	0.000

OPERATIONS

During the financial year, the turnover was Rs. 548.800 millions as compared to Rs. 334.300 millions.During the current year the Company has completed and capitalized in its books the expansion/modernisation of its plant to Rs. 17.228 millions for increasing the production capacity and initiated the proceedings for expansion of production capacity to the tune of 6500 MT PA. To minimize the impact of the increase in the price of raw material and to maintain the best quality the Company has decided to involve the suppliers which are the established supplier to the Company’s parent company production facility at UK. This will ensure maintenance of quality standard and product performance in the market.

FUTURE OUTLOOK

With the optimistic growth of the Indian economy the demand for the Company’s product is expected to pick up. Further with the agreement for providing services the company would get technical knowhow from the parent company and is therefore expected to improve the quality of the product significantly. The Directors are reasonably confident that with these changes the performance of the Company would improve barring unforeseen circumstances. Considering the same fact the company has entered into an agreement with The Morgan Crucible Company Plc UK for providing management services in the area of planning, sales, accounts, HR policies and various other commercial aspects. The benefit is seen in the year under review. The Directors are also executed an agreement with The Morgan Crucible Company Plc UK for use of trade mark logo and GBU charges.

FIXED ASSETS:

· Leasehold Land

· Buildings

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

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.44.15
UK Pound	1	Rs.72.10
Euro	1	Rs.63.10

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
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.