MIRA INFORM REPORT

Report Date :

30.04.2012

IDENTIFICATION DETAILS

Name :	ITCO INDUSTRIES LIMITED
Registered Office :	No.321, Raheja Arcade Koramangala, Bangalore - 560095, Karnataka
I
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.08.1995
Com. Reg. No.:	08-18672
Capital Investment / Paid-up Capital :	Rs. 13.400 Millions
CIN No.: [Company Identification No.]	U85110KA1995PLC018672
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Thixotropic Gels for Fibre Optic Cables.
No. of Employees :	1000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 170000
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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office :	No.321, Raheja Arcade Koramangala, Bangalore 560095, Karnataka, India
Tel. No.:	91-80-41216119 / 25539459
Fax No.:	91-80-25539460
E-Mail :	itcoinds@itcoindia.com itcoinds@vsnl.com sales@itcoindia.com rktantry25@yahoo.co.in krishnamurthyhn@gmail.com
Website :	www.itcoindia.com
Factory :	66-C, Sipcot Industrial Complex, Phase I, Hosur 635126, Karnataka, India
Tel. No.:	91-4344-277642 / 277133
Fax No.:	91-4344-400261

DIRECTORS

As on 30.09.2011

Name :

Mr. Anand Krishna Bagaria

Designation :

Director

Address :

No.293, 14A, C Ross 17^th Mainhs R Layout, Bangalore – 560034, Karnataka, India

Date of Birth/Age :

02.12.1966

Date of Appointment :

30.08.1995

DIN No.:

 0408976

Other directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U51109WB1988PTC045583	ITCO CHEM (INDIA) PRIVATE. LIMTED.	Director	18/11/1988	18/11/1988	-	Active	NO
2	U85110KA1995PLC018672	ITCO INDUSTRIES LIMITED	Managing director	1/4/2011	30/08/1995	-	Active	NO

Name :

Mr. Sandeep Krishna Bagaria

Designation :

Director

Address :

218^th Bed Extn, 6^th Main, Bangalore - 560034, Karnataka, India

Date of Birth/Age :

02.07.1971

Date of Appointment :

30.08.1995

DIN No.:

00264327

Other directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U51109WB1988PTC045583	ITCO CHEM (INDIA) PRIVATE LIMITED..	Director	18/11/1988	18/11/1988	-	Active	NO
2	U85110KA1995PLC018672	ITCO INDUSTRIES LIMITED	Director	30/08/1995	30/08/1995	-	Active	NO
3	U74210KA2002PTC030555	GATEWAY MINING TOOLS PRIVATE LIMITED	Director	28/05/2002	28/05/2002	-	Active	NO
4	U26921KA2005PTC038025	STONEX GRANITES INDIA PRIVATE LIMITED	Director	23/12/2005	23/12/2005	8/1/2008	Active	NO
5	U74140KA2003PTC041119	SEA HORSE VANIJYA PRIVATE LIMITED	Director	26/12/2005	26/12/2005	-	Active	NO
6	U29222KA2007PTC043544	MAGICAL TECHNOLOGIES (INDIA) PRIVATE LIMITED.	Director	6/8/2007	6/8/2007	-	Active	NO
7	U28939KA2009PTC051147	NANCHANG CEMENTED CARBIDE COMPANY PRIVATE LIMITED	Director	9/10/2009	9/10/2009	-	Active	NO
8	U45209WB2008PTC127861	HERITAGE STRUCTURES PRIVATE LIMITED	Director	14/07/2010	14/07/2010	-	Active	NO

Name :

Mr. Santosh Kumar Bagaria

Designation :

Director

Address :

C-201 Gem Regency, Nirguna Mandir, Ist Block, Bangalore - 560047, Karnataka, India

Date of Birth/Age :

30.01.1950

Date of Appointment :

30.08.1995

DIN No.:

 00264327

Other directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U85110KA1995PLC018672	ITCO INDUSTRIES LIMITED	Director	30/08/1995	30/08/1995	-	Active	NO
2	U05190KA2004PTC033286	Bagaria Medmark Private Limited	Director	3/2/2004	3/2/2004	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Santosh Kumar Bagaria	353840
Anand Krishna Bagaria	197510
Sandeep Krishna Bagaria	152510
Raghunandan Bagaria	247520
Veena Devi Bagaria	58110
Ganga Devi Bagaria	10010
Chandra Krishna Bagaria	42000
ITCO Chem India Private Limited, India	158500
Sunita Bagaria	5000
Shweta Bagaria	5000
A K Bagaria (HUF)	55000
S K Bagaria (HUF)	55000
Total	1340000

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies Corporate	12.00
Directors or relatives of directors	88.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Thixotropic Gels for Fibre Optic Cables.

Products :

ITC Code No.	Product Description
390290	Cable Filling Compounds

As on 31.03.2011

PRODUCTION STATUS

Particulars	Unit	Actual Production
Itcogel	kgs	1996195.50

GENERAL INFORMATION

No. of Employees :

1000 (Approximately)

Bankers :

Canara Bank, Town Hall Branch, J C Road, Bangalore - 560002, Karnataka, India

Facilities :

SECURED LOAN	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Canara Bank Cash Credit A/c 0413261027300 (Bangalore)	15.809	9.740
Cash Credit A/c 1972256010096 (Hosur)	0.389	0.409
Term loan	0.340	0.851
Total	16.538	11.000
Note : Cash Credit accounts are secured by hypothecation of Raw Materials, Work-in-Process, Finished Goods and receivables and further secured by way of First Charge on fixed assets of the company and personal guarantee of the Directors. Term loan from Canara Bank is secured against Plant and Machinery
UNSECURED LOAN	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Directors and Shareholders	2.250	2.250
Sales Tax deferment loan	8.626	10.201
Total	10.876	12.451

Banking Relations :	--
Auditors :
Name :	R K Tantry and Company Chartered Accountants
Address :	No. 379, 3^rd Main 7^th Cross, CKA Layout, BSK III Stage, Bangalore 560085, Karnataka, India
PAN.:	AAAFR8816P

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs. 10/- each	Rs.15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1340000	Equity Shares	Rs. 10/- each	Rs.13.400 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		13.400	13.400	13.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		28.753	24.268	14.633
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		42.153	37.668	28.033
LOAN FUNDS
1] Secured Loans		16.538	11.000	9.389
2] Unsecured Loans		10.876	12.451	13.506
TOTAL BORROWING		27.415	23.451	22.895
DEFERRED TAX LIABILITIES		1.440	1.328	1.384
TOTAL		71.008	62.447	52.312
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		18.837	14.232	14.813
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.005	0.005	0.005
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	28.698	25.086	15.372
	Sundry Debtors	16.024	29.463	31.312
	Cash & Bank Balances	1.360	2.730	4.501
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	20.949	15.520	8.361
Total Current Assets		67.031	72.799	59.546
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	8.973	20.205	20.483
	Other Current Liabilities	2.602	1.218	0.000
	Provisions	3.290	3.166	1.569
Total Current Liabilities		14.865	24.589	22.052
Net Current Assets		52.166	48.210	37.494
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		71.008	62.447	52.312

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	215.262	228.564	300.843
		Other Income	1.006	1.670	0.866
		TOTAL (A)	216.268	230.234	301.709
Less	EXPENSES
		Raw Materials Consumed	156.496	151.541	198.357
		Excise Duty	10.571	9.211	27.905
		Employment Cost	4.715	4.244	3.811
		Manufacturing and Other Expenses	22.906	23.886	26.733
		Administrative and Other Expenses	5.269	7.830	6.460
		Selling and Distribution Expenses	11.746	15.926	14.787
		Increase/Decrease in Stock	(6.250)	0.503	4.800
		TOTAL (B)	205.453	213.141	282.853
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		10.815	17.093	18.856
Less	FINANCIAL EXPENSES (D)		1.714	0.317	1.673
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		9.101	16.776	17.183
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.559	2.056	2.083
	PROFIT BEFORE TAX (E-F) (G)		6.542	14.720	15.100
Less	TAX (H)		2.057	5.086	5.782
	PROFIT AFTER TAX (G-H) (I)		4.485	9.634	9.318
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		22.633	12.998	3.680
	BALANCE CARRIED TO THE B/S		27.118	22.632	12.998
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	102.056	0.000	0.000
	Earnings Per Share (Rs.)		3.35	7.19	6.95

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.07	4.18	3.09
Net Profit Margin (PBT/Sales)	(%)	3.04	6.44	5.02
Return on Total Assets (PBT/Total Assets}	(%)	7.62	17.15	20.31
Return on Investment (ROI) (PBT/Networth)		0.15	0.39	0.54
Debt Equity Ratio (Total Liability/Networth)		1.00	1.24	1.60
Current Ratio (Current Asset/Current Liability)		4.51	3.06	2.70

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	Yes
8) No. of employees	Yes
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	No
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	-
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	No
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	--
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

OPERATIONS AND FUTURE PLANS:

The gross sales achieved during last year 2010-11 is Rs.215.263 millions which represents a decrease of 6.18% as compared to the previous year 2009-10 (Rs.228.564 millions).

While the export sales have kept the Momentum, domestic sales reduced due to postponement and late awarding of some key tenders by BSNL. However the strong demand for bandwidths and 3G telecom networks is expected to boost the demand for optical fiber cables in the future sales the company's products.

Bankers Charges Report as per Registry

Corporate identity number of the company	U85110KA1995PLC018672
Name of the company	ITCO INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	No.321, Raheja Arcade Koramangala, Bangalore 560095, Karnataka, India.
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90197262
Type of charge	· Book Debts · Movable Property
Particular of charge holder	Canara Bank, Town Hall Branch, JC Road, Bangalore 560002, Karnataka. E-Mail: krishnamurthyhn@gmail.com
Nature of instrument creating charge	Supplemental Common Hypothecation Agreement
Date of instrument Creating the charge	04.11.2009
Amount secured by the charge	Rs.40.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest as Applicable from Bank (OCC/BD/BE/PC/FDB/FBE-Rs.17.000 Millions/ TL-Rs.2.500 Millions/ FLC-Rs.20.000 Millions/ BG-Rs.0.500 Millions)  Terms of Repayment Repayable on Demand Margin Margin As Applicable From Bank Extent and Operation of the charge 100% Till the closure of the Loan
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of all the Present and Future Stock of Raw Materials, Finished and Semi finished Goods like Jelly, Filled Cables and Opticals , fibre, etc., and Book Debts, Outstanding Monies receivables etc.
Particulars of the present modification	Extension of Hypothecation. of Movable Assets and Book Debts etc., for the increased Limit of Rs.40.000 Millions.(OCC/BD/BE/PC/FDB/FBE-Rs.170 Millions/ TL-Rs.2.500 Millions/ FLC-Rs.20.000 Millions/ BG-Rs.0.500 Millions). All other Terms, Conditions and Securities Continues for the Existing Limit of Rs.40.000 Millions.

FIXED ASSETS

• Land (Leasehold)
• Factory Building
• Plant and Machinery
• Vehicles
• Furniture and Fixture
• Office Equipment
• Computers

Website Details :

Company Profile:

Subject a part of the ITCO group having diverse business activities, was incorporated in 1995 to exclusively develop and manufacture thixotropic gels for fibre optic cables. 

Situated in the industrial town of Hosur (40 Km from Bangalore in India) with world class manufacturing and R and D facilities, ITCO pioneered the quality manufacture of Thixotropic Gels (thixotropic cable filling & flooding compounds) in India and remains a key player in the market. The present yearly production capacity is 7200 metric tons. 

The ITCO group started its activities in 1938 as a manufacturer and exporter of Mica and Mica products for use in electrical appliances and later diversified into handling other products for Telecom Cables and Power Capacitors industry. 

Subject also represents Alcan Packaging Kreuzlingen AG, Switzerland (condensor aluminium foils) and Bollore, France (polypropylene films). 

Aiming to be an important supplier of speciality raw materials, Subject today has a presence in the key Infrastructure areas like Telecom, Power and Mining. 

The Sales volume handled by Subject is continuously increasing and is currently exceeding 30 million US Dollars per annum

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.52.68
UK Pound	1	Rs.85.12
Euro	1	Rs.69.38

INFORMATION DETAILS

Report Prepared by :

DPK

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	4
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	No
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		44

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.