MIRA INFORM REPORT

Report Date :

30.06.2012

IDENTIFICATION DETAILS

Name :	THERMON HEAT TRACERS PRIVATE LIMITED (w.e.f. 14.07.2002)
Formerly Known As :	THERMON HEAT TRACERS LIMITED
Registered Office :	566+570/1Koregaon Bhima Road, Shirur, Pune – 412227, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	16.08.1983
Com. Reg. No.:	11-030628
Capital Investment / Paid-up Capital :	Rs.6.500 Millions
CIN No.: [Company Identification No.]	U99999MH1983PTC030628
TAN No.: [Tax Deduction & Collection Account No.]	MUMT09177A
PAN No.: [Permanent Account No.]	AAACT6307Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Heat Tracers and Supplier of Oil and Gas Refinery.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 350000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track records. But in the current year company has incurred some loss. However, trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for business dealings on a usual trade term 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 :	566+570/1Koregaon Bhima Road, Shirur, Pune – 412227, Maharashtra, India
Tel. No.:	91-2137-52405
Fax No.:	91-2137-52405
E-Mail :	mithilesh.juvle@thermon.com mukund.honkan@thermonindia.com george.alexander@thermon.com
Corporate Office :	G-144/145 Kailash Vaibhav Complex, Vikroli West, Mumbai – 400079, Maharashtra, India
Tel. No.:	91-22-25190600

DIRECTORS

(AS ON 27.09.2011)

Name :

Rodney Lynn Bingham

Designation :

Director

Address :

4002, Austin, Meadow Drive, Sugarland Texas 77479

Date of Birth/Age :

11.04.1951

Date of Appointment :

18.04.2009

DIN No.:

02791480

Name :

George Peyton Alexander III

Designation :

Director

Address :

10370, HWY Seguin Texas 78155

Date of Birth/Age :

26.08.1950

Date of Appointment :

18.04.2009

DIN No.:

03278568

Name :

Jay Carl Peterson

Designation :

Director

Address :

10129, Planters Wood, Austin Texas USA 78730

Date of Birth/Age :

26.01.1957

Date of Appointment :

07.10.2010

DIN No.:

02360288

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U72200MH2004PTC146839	ISARLA SOFTWARE SOLUTIONS PRIVATE LIMITED	Director	25-09-08	25-09-08	Active	NO
2	U99999MH1983PTC030628	THERMON HEAT TRACERS PVT LTD	Director	07-10-10	07-10-10	Active	NO

KEY EXECUTIVES

Name :	Mr. Prasad Shripad Shetye
Designation :	Manager
Address :	701, Yog Milan, Grant Road, Mumbai – 400036, Maharashtra, India
Date of Birth/Age :	20.10.1966
Date of Appointment :	22.12.2006
Pan No.:	AABFS3421N

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 27.09.2011)

Names of Shareholders	No. of Shares
Thermon Manufacturing Company, USA	649997
Thermon Heat Tracing Services - II, Inc., USA	1
Thermon Heat Tracing Services, INC, USA	1
Thermon Heat Tracing Services - I, INC, USA	1
Total	650000

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Heat Tracers and Supplier of Oil and Gas Refinery.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Heat Transfer Cement	Kgs.	120000 Kgs. P.a.	19350 Kgs.
Heat Tracers	Mtrs.	75000 Mtrs p.a.	47483 Mtrs.
Thermostats	Nos.	25000 modules p.a.	1060 Nos.

The company is presently not covered by Industrial licensing. Hence details of licensed capacity are not given.

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	Not Available

Banking Relations :	--
Financial Institution :	· 3i Infotech Trusteeship Services Limited 6^th Floor, Akruti Centre Point, MIDC Central Road, Andheri (East), Mumbai – 400093, Maharashtra, India
Auditors :
Name :	B L Ajmera and Company Chartered Accountant
Address :	Malji Chhogalal Trust Building, Mirza Ismail Road, Jaipur – 302001, Rajasthan, India
Tel No.:	91-141-2373433
Fax No.:	91-141-2371152
PAN No.:	AABFB2982K
Email :	blajmeraco@jmeragroup.net
Holding Company :	· Thermon Manufacturing Company, USA

CAPITAL STRUCTURE

(AS ON 27.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
650000	Equity Shares	Rs.10/- each	Rs.6.500 Millions

NOTE:

(Of the above 645,997 share of Rs.10/- each are held by Thermon Manufacturing Company, USA)

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		6.500	6.500	6.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		80.943	84.394	53.789
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		87.443	90.894	60.289
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.322	0.664
TOTAL		87.443	91.216	60.953
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11.846	10.524	9.326
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		9.020	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	9.764	7.850	8.313
	Sundry Debtors	32.643	58.387	87.805
	Cash & Bank Balances	57.450	32.319	13.967
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	62.314	42.284	3.732
Total Current Assets		162.171	140.840	113.817
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	15.003	15.497	57.956
	Other Current Liabilities	13.518	3.661
	Provisions	67.073	40.990	4.234
Total Current Liabilities		95.594	60.148	62.190
Net Current Assets		66.577	80.692	51.627
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		87.443	91.216	60.954

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Net Sales and Services Income	140.553	137.879	242.890
		Other Income	4.862	18.899	18.640
		TOTAL	145.415	156.778	261.530
Less	EXPENSES
		TOTAL	132.926	109.516	224.720
	PROFIT BEFORE TAX		12.489	47.262	36.810
Less	TAX		15.940	16.657	12.990
	PROFIT AFTER TAX		(3.451)	30.605	23.820
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		81.300	50.695	26.880
	BALANCE CARRIED TO THE B/S		77.849	81.300	50.700
	EARNINGS IN FOREIGN CURRENCY
		Commission Income	0.000	17.733	16.831
		Export of Goods	0.000	1.226	0.000
		Export of Service	0.000	2.372	0.000
	TOTAL EARNINGS		0.000	21.331	16.831
	IMPORTS
		Raw Materials	11.965	9.035	4.839
		Tracing Systems/ Components	27.954	38.269	45.012
	TOTAL IMPORTS		39.919	47.304	49.851
	Earnings Per Share (Rs.)		(5.31)	--	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(2.37)	19.52	9.11
Net Profit Margin (PBT/Sales)	(%)	8.89	34.28	15.16
Return on Total Assets (PBT/Total Assets}	(%)	7.18	31.22	29.89
Return on Investment (ROI) (PBT/Networth)		0.14	0.52	0.61
Debt Equity Ratio (Total Liability/Networth)		1.09	0.66	1.03
Current Ratio (Current Asset/Current Liability)		1.70	2.34	1.83

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	Yes
No. of Employees	No
Name of Person Contacted	No
Designation of Contact person	No
Turnover of Firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-----
Estimation for coming financial year	No
Capital in the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payments Terms	No
Export/ Imports Details (If applicable)	No
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	No
Banking Facility Details	No
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	Yes
Incorporation details is applicable	Yes
Last Accounts filed at ROC	Yes
Major Shareholders, if available	Yes

FINANCIAL RESULTS

The financials year ended on a note of satisfactory with the company being able to post a profit before tax and exceptional items of Rs.12.489 Millions as against Rs.47.262 Millions in the previous year.

REVIEW OF OPERATIONS:

The review of operations gives a feeling of achievement. The sales revenue and profits are in line with the expectations. Despite the economic slowdown, the results of operations have been good. The Company has secured a very large order from a well know company in the oil sector worth an estimated Rs.60 million and few more of similar volume are expected. During the year, the company has invested in ERP, the benefits of which should be reaped in the coming years.

FUTURE OUTLOOK

With the growth in the industrial sector continuing to be strong, there is an ongoing demand for their products and services. Company shall continue to focus on large heat tracing contracts in the industrial sector. Company is addressing the need for additional resources by hiring and training required manpower. India and Middle East markets offer good opportunity for growth. The Indian operations are well poised to take advantage of these trends. The coming years are expected show very splendid results, both from revenue as well as from profitability point of view.

CONTINGENT LIABILITIES NOT PROVIDED FOR:

Particulars	31.03.2011	31.03.2010
	(Rs. In Millions)
Custom Duty Demands (For Projects Imports)	--	10.103
Central Sales Tax (FY 2001-02)	--	0.819
Bombay Sales Tax (FY 2001-02)	--	0.045
Bombay Sales Tax (FY 2003-04)	--	0.249
Central Sales Tax (FY 2003-04)	--	2.731
Bombay Sales Tax (FY 2004-05)	--	0.703
Central Sales Tax (FY 2004-05)	--	4.956
Andhra Pradesh Sales Tax (FY 1998-99)	--	1.421

FORM 8:

This form is for	Modification of charge
Charge identification number of the modified	10133222
Corporate identity number of the company	U99999MH1993PTC030628
Name of the company	THERMON HEAT TRACERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	566+570/1 Koregaonbhimard Shirur, Pune – 412207, Maharashtra, India purushottam_badsiwal@thermonindia.com
Type of charge	Immovable Property
Particular of charge holder	3i Infotech Trusteeship Services Limited 6th Floor, Akruti Centre Point, M.I.D.C. Central Road, Andheri (East), Mumbai – 400093, Maharashtra, India prashant.joshi@3i-itsl.com
Nature of description of the instrument creating or modifying the charge	Supplemental Indenture of Mortgage
Date of instrument Creating the charge	06/10/2009
Amount secured by the charge	Rs.80.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest Overdraft: IBAR-2.25% p.a. and Cash Credit Risk Premium prevailing on each day plus applicable interest tax or other statutory levy, if any, on the principal amount of the loan remains outstanding Terms of Repayment Bank Guarantee Tenor: The Validity of any bank guarantees issued should not exceed 36 months including claim period, if any Overdraft: 12 Months from date of sanction or one month prior to expiry of SBLC whichever is earlier. Margin Bank Guarantee Margin: 10% in the form of Fixed Deposits under lien with ICICI Bank Extent and Operation of the charge First Charge by way of registered mortgage of existing land and building situated at Gat No. 796 (previously known as 566) and Gat No 800/1 (previously known as 570/1) Koregaon Bhima, Taluka Bhima, District Pune, Maharashtra
Short particulars of the property charged	First Charge by way of registered mortgage of existing land and building situated at Gat No. 796 (previously known as 566) and Gat No 800/1 (previously known as 570/1) Koregaon Bhima, Taluka Bhima District Pune, Maharashtra
Date of latest modification prior to the present modification	30/03/2009
Particulars of the present modification	Supplemental Indenture of Mortgage has been executed for enhancement of Working Capital Facilities from Rs.40.0 million to Rs.80.0 million (Bank Guarantee enhanced from Rs.36.5 million to Rs.76.5 million and Overdraft limits of Rs.3.5 million) and other terms and conditions remains unchanged.

FIXED ASSETS:

· Freehold Land

· Factory Building

· Leasehold Improvement

· Plant and Machinery

· Vehicles

· Electrical Installations

· Office Equipment

· Computers

· Air Conditioner

· Furniture and Fixture

· Temporary Structures

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] 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.56.31
UK Pound	1	Rs.88.06
Euro	1	Rs.70.91

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		48

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.