MIRA INFORM REPORT

Report Date :

12.03.2012

IDENTIFICATION DETAILS

Name :	TERACOM LIMITED (w.e.f. 15.03.2002)
Formerly Known As :	TOP CHOICE DETERGENT PRIVATE LIMITED
Registered Office :	Plot No. 250, Kundaim Industrial Estate, Kundaim, Goa – 403 115
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.02.2001
Com. Reg. No.:	24-002950
Capital Investment / Paid-up Capital :	Rs.124.797 Millions
CIN No.: [Company Identification No.]	U24241GA2001PLC002950
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Telecom Products, Optical Fiber Cable, Power Cable and Conductors and executing turnkey contracts and providing services relating thereto.
No. of Employees :	839(Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (64)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 10180000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having good track. Financial positions of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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 / Factory 1 :	Plot No. 250, Kundaim Industrial Estate, Kundaim, Goa – 403 115, India
Tel. No.:	91-832-3208260 / 3206879 / 1111236166
Fax No.:	91-832-2396165
E-Mail :	Sales- OFC: sales@teracomfibre.com Sales-Telecom: sales@teracom.in Sales Power Cables: terexel@teracom.in Corporate Information: info@teracom.in vrjain@teracom.in pjain@teracom.in msnigam@teracom.in kn.shridhar@yahoo.co.in
Website :	www.teracom.in
Corporate Office :	Teracom House, B – 84, Sector – 60, Noida – 201 301, Uttar Pradesh, India
Tel. No.:	91-120-3290587/ 3290672/ 11113021003/ 3021004
Fax No.:	91-120-2585422
Factory 2 :	Plot No. 17 to 19 and 52 to 54, Sector – 5, Pant Nagar – 263 145, Uttaranchal, India
Location :	Owned
Factory 3 :	250, Kundain Industrial Estate, Kundaim Goa - 403115, India
Location :	Owned
Factory 4 :	170, Bhoma Village, Kundain Industrial Estate, Goa - 403115, India
Location :	Owned
Overseas Office :	C1-905, Ajman Free Zone- 40062, Dubai, United Arab Emirates
Sales Office :	Located at: Chennai Mumbai Kolkata

DIRECTORS

As on 14.10.2011

Name :

Mr. Nand Prakash Sahni

Designation :

Director

Address :

K.N.239 Westend Marg, Mehrauli, Badarpur Road, Village, Saidulazab, Near Saket, New Delhi- 110 030, India

Date of Birth/Age :

16.04.1941

Date of Appointment :

30.05.2006

DIN No.:

00037478

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	L27109DL1958PLC003006	HINDUSTAN TIN WORKS LIMITED	Director	23-10-04	23-10-04	-	Active	NO
2	U55101DL2002PTC114603	AEREN R ENTERTAINMENT PRIVATE LIMITED	Director	21-03-05	21-03-05	15-02-08	Active	NO
3	U24241GA2001PLC002950	TERACOM LIMITED	Director	30-12-06	30-05-06	-	Active	NO
4	U28129DL2006PTC150218	REXAM HTW BEVERAGE CAN (INDIA) PRIVATE LIMITED	Director	09-05-07	09-05-07	-	Active	NO

Name :

Mr. Ram Lakhan Dude

Designation :

Director

Address :

Flat 2, Sri Ram Arya Apartments, Pashan Sus Road, Pashan, Pune – 411 008, Maharashtra, India

Date of Birth/Age :

21.04.1947

Date of Appointment :

11.07.2007

DIN No.:

00059675

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	U74899DL2000GOI107739	BHARAT SANCHAR NIGAM LIMITED	Whole-time director	15-12-04	15-12-04	01-05-07	Active	NO
2	U64200MH2000GOI124302	MILLENNIUM TELECOM LIMITED	Nominee director	30-06-06	30-06-06	29-06-07	Active	NO
3	L29308GJ1976PLC002889	ORG INFORMATICS LIMITED	Director	20-08-07	06-07-07	-	Active	NO
4	U24241GA2001PLC002950	TERACOM LIMITED	Director	29-09-07	11-07-07	-	Active	NO
5	U72900MH2007PLC172976	SPANCO BPO SERVICES LIMITED	Whole-time director	30-06-08	30-06-08	14-04-10	Active	NO
6	U45400DL2009PTC186832	SEED INFRASTRUCTURE AND SOLUTIONS PRIVATE LIMITED	Director	19-03-09	19-03-09	-	Active	NO
7	U74140HR2003PLC035258	ORG TELECOM LIMITED	Director	30-09-09	25-05-09	-	Active	YES
8	U64202PN2009PTC134410	KIPRA TELESOFT PRIVATE LIMITED	Director	31-07-09	31-07-09	-	Active	NO
9	U45200MH1998PTC115419	CLICK TELECOM PRIVATE LIMITED	Director	30-09-10	17-11-09	-	Active	NO
10	U72900KA2000PTC027735	UNIFIED TECHNOLOGIES PRIVATE LIMITED	Director	30-09-11	03-08-11	-	Active	NO

Name :

Dr. Ved Prakash Chawla

Designation :

Director

Address :

Flat No.86, Anupam Apartmentm B-13, Vasundhra Enclave, Delhi-110 096, India

Date of Birth/Age :

06.07.1942

Date of Appointment :

30.05.2006

DIN No.:

00343901

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	U24241GA2001PLC002950	TERACOM LIMITED	Director	30-12-06	30-05-06	-	Active	NO
2	U32109DL1988PLC033680	PME POWER SOLUTIONS (INDIA) LIMITED	Director	02-08-10	19-12-09	-	Active	NO

Name :

Mr. Anirudh Kumar Jain

Designation :

Director

Address :

8/1 – B, Aravali View Rail Vihar, Sector – 56, Gurgaon – 122 003, Haryana, India

Date of Birth/Age :

02.08.1941

Date of Appointment :

30.05.2006

DIN No.:

00357560

Name :

Mr. Rajeev Venkatraman

Designation :

Whole Director

Address :

F-59, Medha Apartments, Mayur Vihar Phase – I, Delhi – 110 091, India

Date of Birth/Age :

26.06.1970

Date of Appointment :

22.02.2002

DIN No.:

01039823

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	U24241GA2001PLC002950	TERACOM LIMITED	Whole-time director	01-06-11	22-02-02	-	Active	NO
2	U72900DL2002PTC117074	TERACOM INFOSOLUTIONS PRIVATE LIMITED	Director	20-09-02	20-09-02	-	Active	NO
3	U31300UP2004PTC029210	NEXTERA TELECOM PRIVATE LIMITED	Director	02-11-04	02-11-04	-	Active	NO
4	U45203DL1991PTC199213	SCANTEC (INDIA) PRIVATE LIMITED	Director	18-07-08	12-12-07	-	Amalgamated	NO
5	U45209UP2008PTC034905	TERACOM HX PRIVATE LIMITED	Director	28-09-11	25-11-08	-	Active	NO
6	U74900UP2010PTC040640	KARNATAKA BROADBAND SERVICES PRIVATE LIMITED	Director	17-05-10	17-05-10	-	Active	NO
7	U74900UP2010PTC040634	MAGADH BROADBAND SERVICES PRIVATE LIMITED	Director	17-05-10	17-05-10	-	Active	NO
8	U74900UP2010PTC040633	INDRAPRASTHA BROADBAND SERVICES PRIVATE LIMITED	Director	17-05-10	17-05-10	-	Active	NO
9	U74900UP2010PTC040631	RAJPUTANA BROADBAND SERVICES PRIVATE LIMITED	Director	17-05-10	17-05-10	-	Active	NO
10	U93030UP2010PTC041033	MAXOLAR CLEAN ENERGY PRIVATE LIMITED	Director	17-06-10	17-06-10	-	Active	NO
11	U74992UP2010PTC041429	TERAMER SECURITY PRIVATE LIMITED	Director	21-07-10	21-07-10	-	Active	NO

Name :

Mr. Mukesh Arora

Designation :

Chairman cum Managing Director

Address :

B-26, Sector – 36, Noida – 201 301, Uttar Pradesh, India

Date of Birth/Age :

27.05.1966

Qualification :

M. Tech

Experience :

22 Years

Date of Appointment :

30.03.2003

DIN No.:

01072375

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	U72200MH1998PTC117123	RACHITA BUSINESS SOLUTIONS PRIVATE LIMITED	Director	16-11-98	16-11-98	-	Active	NO
2	U72900DL2002PTC117074	TERACOM INFOSOLUTIONS PRIVATE LIMITED	Director	20-09-02	20-09-02	-	Active	NO
3	U24241GA2001PLC002950	TERACOM LIMITED	Managing director	01-06-11	30-03-03	-	Active	NO
4	U31300UP2004PTC029210	NEXTERA TELECOM PRIVATE LIMITED	Director	02-11-04	02-11-04	-	Active	NO
5	U45203DL1991PTC199213	SCANTEC (INDIA) PRIVATE LIMITED	Director	18-07-08	12-12-07	-	Amalgamated	NO
6	U45209UP2008PTC034905	TERACOM HX PRIVATE LIMITED	Director	28-09-11	25-11-08	-	Active	NO
7	U70102UP2010PTC039211	UNNATI INFRAPROJECTS PRIVATE LIMITED	Director	11-01-10	11-01-10	31-03-10	Active	NO
8	U74900UP2010PTC040640	KARNATAKA BROADBAND SERVICES PRIVATE LIMITED	Director	17-05-10	17-05-10	-	Active	NO
9	U74900UP2010PTC040634	MAGADH BROADBAND SERVICES PRIVATE LIMITED	Director	17-05-10	17-05-10	-	Active	NO
10	U74900UP2010PTC040633	INDRAPRASTHA BROADBAND SERVICES PRIVATE LIMITED	Director	17-05-10	17-05-10	-	Active	NO
11	U74900UP2010PTC040631	RAJPUTANA BROADBAND SERVICES PRIVATE LIMITED	Director	17-05-10	17-05-10	-	Active	NO
12	U93030UP2010PTC041033	MAXOLAR CLEAN ENERGY PRIVATE LIMITED	Director	17-06-10	17-06-10	-	Active	NO
13	U74992UP2010PTC041429	TERAMER SECURITY PRIVATE LIMITED	Director	21-07-10	21-07-10	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Ashok Kumar Agarwal
Designation :	Secretary
Address :	A-48, Sector -41, Noida – 201301, Uttar Pradesh, India
Date of Birth/Age :	26.05.1959
Date of Appointment :	15.07.2011
Pan No. :	ACPAA4782H

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 14.10.2011

Names of Shareholders	No. of Shares
Mukesh Arora	6616000
Rajeev Venkatraman	552275
B N Arora	48000
Sudershana Arora	26000
Meenu Arora	5000
Madhabi Venkatraman	40000
Moser Investment Limited, Dubai	797500
Namish S Shah/ Rekha N Shah	1075000
Nemish Shantilal Shah	100000
Pankaj V. Kotecha	35000
Manjeet Cotton Private Limited, India	100000
Bunkim Finance and Investment Private Limited, India	100000
Jayati Finance and Investments Private Limited, India	100000
Puneet Jain	5000
Four Dimensions Capital Markets Private Limited, India	111000
Rajni Jain	65000
J M Financial Ventures Limited, India	260000
India Equity Growth Fund Limited, India	31700
Shardul Securities Limited, India	220000
Samara Capital Partners Fund I Limited, India	10000
Priti Bharat Kotecha	10000
Rachita Arora	25000
Aryaman Arora	25000
Vijay Mehndirata	450

Equity Share Break up (Percentage of Total Equity)

As on 14.10.2011

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	14.56
Bodies corporate	5.63
Directors or relatives of Directors	58.52
Other top fifty shareholders	20.99
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Telecom Products, Optical Fiber Cable, Power Cable and Conductors and executing turnkey contracts and providing services relating thereto.

Products :

Item Code No. (ITC Code)	85.44
Product Description	Optical Fiber Cable
Item Code No. (ITC Code)	85.17
Product Description	Telecom Instruments
Item Code No. (ITC Code)	85.44
Product Description	Power Cables

· Duplex Optical Fiber Cables

· Multi-Tube Armored/Dielectric Cable

· Uni-Tube Cable for CATV

· Uni-Tube Armored/Dielectric Cable

· FRP Rods

· Aluminium Wire Rods

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Installed Capacity	Actual Production
Optical Fibre Cable	Nos.	34272	28219.515
FRP Rods	Nos.	200000	126596.440
Customer Premise and other Telecom equipments	Nos.	200000	517279
Transmission Equipments	Nos.	2500	547
Power Cable	Nos.	30000	3745837
House Wire	Nos.	41400	1256.884
Conductor	Nos.	15000	14340.910
Ariel Bunched Cable	Nos.	10000	1502.919
Aluminium Wire Rod	Nos.	12000	594.272

Note

• As none of the company’s products are covered under licensing requirements of the new Industrial policy the licensed capacity is being treated and disclosed as ‘N.A’ i.e. Not Applicable. Installed capacity is taken as certified by the management being a technical matter.

• The installed capacity of optical fibre cable is based on number of fibre in the cable and is calculated on 12 Fibre Unitube Cable.

• The installed capacity of Power Cable and Ariel Bunched cable is on the basis of Core Kms.

• FRP Rods 36,797.248Kms (Previous year 30,659.092Kms) has been captivity consumed out of the total production.

• Aluminum Wire Rod 54.062 MT (Previous year 1,334.812 MT) has been captivity consumed out of the total production.

GENERAL INFORMATION

No. of Employees :

839(Approximately)

Bankers :

v Punjab National Bank, BO: Large Corporate Branch, Tolstoy House, Tolstoy Marg, New Delhi - 110 001, Delhi, India

v ICICI Bank Limited, Race Cource Circle, Alkapuri, Baroda, Gujarat, India

v IDBI Bank, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai – 400005, Maharashtra, India

v Yes Bank

v HDFC Bank Limited

v The Hong Kong Shanghai Bank Limited, Birla House, 25 Barakhabha Road, New Delhi – 110001, India

v Standard Chartered Bank, CRC, Narain Manzil, 23, Barakhambha Road, New Delhi – 110001, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	727.625	400.613
Working capital loans banks secured	1580.533	1240.168
Loans taken for vehicles secured	5.630	5.704
Interest accrued due other debt secured	13.993	0.000
Total	2327.781	1646.485
Footnotes (A) 1) Corporate Loan from Punjab National Bank is secured by way of First Charge on Land, Building and Plant and Machinery situated at Plot No.249,Kundaim Industrial Estate, Goa and on second charge basis on all current assets, fixed assets for OFC and CDMA units at 250,Kundaim Industrial Estate,Goa, Block assets at Pantnagar, Uttarkhand, and 170,Kundaim Industrial Estate, Village Bhoma, Goa and further secured by way of personal guarantees of Mr. Mukesh Arora and Mr. Rajeev Venkatraman directors of the Company. 2) External Commercial Borrowings from Standard Chartered Bank are secured by way of First Charge on immovable property situated at plot no.250 A (adjacent to Plot No.250), Kundaim Industrial Estate, Kundaim, Goa and specified movable fixed assets purchased out of the ECB facility and by way of second pari passu charge over company’s immovable properties situated at 170 and 250, Kundaim Industrial Estate, Kundaim, Goa and plot no.17 to 19 & 52 to 54, Sector 5 Pant Nagar, Industrial Estate, Uttaranchal present and future current assets of the Company and further secured by way of personal guarantees of Mr. Mukesh Arora and Mr. Rajeev Venkatraman directors of the Company. 3) Borrowing from Tata Capital Limited is secured by hypothecation by way of subservient charge of all fixed and current assets of the company and mortgage of Companys immovable property situated at 01 B, Sector 126, Noida and further secured by way of personal guarantees of Mr. Mukesh Arora and Mr. Rajeev Venkatraman directors of the Company. 4) Loan from ICICI is secured by hypothecation and mortgage of Companys immovable property situated at Plot No.102, Kundaim Industrial Estate, Kundaim, Goa and assets acquired for SMT line at Plot No.170, Kundaim industrial estate, Goa and further secured by way of personal guarantees of Mr. Mukesh Arora and Mr. Rajeev Venkatraman directors of the Company. B- A) Working capital facilities including non fund based limits are secured by way of first pari passu charge over current assets, first pari passu charge over the immovable properties and other fixed assets of the company situated at plot no.250,Kundaim Industrial Estate, Goa, plot no.170, Kundaim Industrial Estate, Goa and plot no.17 to 19 and 52 to 54, Sector 5 Pant Nagar, Industrial Estate, Uttaranchal and also by way of second pari passu charge over the other fixed assets of the Company situated at plot no249 and 250 A,(adjacent to Plot No.250) Kundaim Industrial Estate, Goa and further secured by way of personal guarantees of Mr.Mukesh Arora and Mr.Rajeev Venkatraman directors of the Company. B) Working capital facilities including non fund based limits from Bank of India are secured by way of first pari passu charge over current assets and plant and machinery of Scantec division of the company and further secured by way of personal guarantees of Mr.Mukesh Arora and Mr.Rajeev Venkatraman directors alongwith corporate guarantee of the Company. (C) Vehicle loans are secured against hypothecation of respective vehicles
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans banks unsecured	150.000	290.000
Loans subsidiaries unsecured	17.843	0.000
Total	167.843	290.000

Banking Relations :	--
Financial Institutions:	Sojitz Corporation, 1-20, Akasaka 6 – Chome, Minato –Ku, Tokyo 107-8655, Japan
Auditors :
Name :	Haribhakti and Company Chartered Accountants
Address :	42, Free Press House, 215 , Nariman Point, Mumbai – 400 021, Maharashtra, India
PAN.:	AAAFH2010F
Enterprise under control of the reporting enterprise :	Nextera Telecom Private Limited CIN No. : U31300UP2004PTC029210 Teracom Infosolutions Private Limited CIN No. :U72900DL2002PTC117074 Teracom HX Private Limited CIN No. :U45209UP2008PTC034905 Teramer Security Private Limited CIN No. :U74992UP2010PTC041429 Maxolar Clean Energy Private Ltd CIN No. :U93030UP2010PTC041033
Enterprises over which significant influence can be exercised by persons at :	Rachita business Solutions Private Limited Oriental Technologies Karnataka Broadband Services Private Limited Rajputana Broadband Services Private Limited Magadh Broadband Services Private Limited Indraprastha Broadband Services Private Limited Shri Hari Grits Private Limited Reliable Stone Crushing Private Limited Brahm Stone Crushing Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs.10/- each	Rs.400.000 millions
1000000	Compulsorily Convertible Preference shares	Rs.100/- each	Rs.100.000 millions
	TOTAL		Rs.500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12479650	Equity Shares	Rs.10/- each	Rs.124.797 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		124.797	123.177	123.177
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2420.050	2116.488	1834.493
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2544.847	2239.665	1957.670
LOAN FUNDS
1] Secured Loans		2327.781	1646.485	1381.108
2] Unsecured Loans		167.843	290.000	260.538
TOTAL BORROWING		2495.624	1936.485	1641.646
DEFERRED TAX LIABILITIES		54.322	22.905	31.119
TOTAL		5094.793	4199.055	3630.435
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1638.533	1303.310	1221.460
Capital work-in-progress		432.002	428.636	102.010
INVESTMENT		0.870	19.181	19.092
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1049.295	538.820	427.592
	Sundry Debtors	5375.030	4589.310	3782.575
	Cash & Bank Balances	281.668	356.936	622.996
	Other Current Assets	205.290	186.277	199.449
	Loans & Advances	643.960	309.070	223.455
Total Current Assets		7555.243	5980.413	5256.067
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4177.607	3267.383	2855.029
	Other Current Liabilities	312.105	256.953	107.380
	Provisions	42.143	8.149	5.785
Total Current Liabilities		4531.855	3532.485	2968.194
Net Current Assets		3023.388	2447.928	2287.873
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		5094.793	4199.055	3630.435

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	8405.955	7919.533	6973.865
		Other Income	38.130	84.373	48.612
		TOTAL (A)	8444.085	8003.906	7022.477
Less	EXPENSES
		Consumption materials changes inventories	6692.818	6465.492	6470.182
		Manufacturing service costs	430.851	468.348
		Contract cost	239.608	323.838
		Employee related expenses	200.559	172.237
		Administrative selling other expenses	63.429	154.197
		Prior period items	2.513	0.000
		TOTAL (B)	7629.778	7584.112	6470.182
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		814.307	749.794	552.295
Less	FINANCIAL EXPENSES (D)		415.904	342.071	347.820
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		398.403	377.723	204.475
Less/ Add	DEPRECIATION/ AMORTISATION (F)		93.849	83.469	55.135
	PROFIT BEFORE TAX (E-F) (G)		304.554	294.254	149.340
Less	TAX (H)		39.412	9.342	9.956
	PROFIT AFTER TAX (G-H) (I)		265.142	284.912	139.384
Less	Prior Period Adjustment		0.000	0.000	5.667
	BALANCE CARRIED TO THE B/S		265.142	284.912	133.717
	EARNINGS IN FOREIGN CURRENCY
		FOB value of Exports	186.948	73.213	279.900
	TOTAL EARNINGS		186.948	73.213	279.900
	IMPORTS
		Raw Materials	2180.400	2375.800	2218.500
		Capital Goods	98.100	214.300	4.700
	TOTAL IMPORTS		2278.500	2590.100	2223.200
	Earnings Per Share (Rs.)
	Basic		21.34	23.11	11.32
	Diluted		21.32	23.07	11.26

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.14	3.56	1.98
Net Profit Margin (PBT/Sales)	(%)	3.62	3.72	2.14
Return on Total Assets (PBT/Total Assets}	(%)	3.31	4.04	2.31
Return on Investment (ROI) (PBT/Networth)		0.12	0.13	0.08
Debt Equity Ratio (Total Liability/Networth)		2.76	2.44	1.52
Current Ratio (Current Asset/Current Liability)		1.67	1.69	1.77

LOCAL AGENCY FURTHER INFORMATION

MANAGEMENT DISCUSSIONS AND ANALYSIS

FINANCIAL REVIEW

During the year the Sales and Other Income of the Company has increased to Rs.8444.100 millions from Rs.8003.900 millions in the previous year showing an increase of 5.50%. T he Profit before Taxation is Rs.307.100 millions as against Rs.294.300 millions during the previous year, whereas, the cash accruals remained at Rs.389.100 millions during the year against Rs.359.900 millions in previous year.

INDUSTRY STRUCTURE AND DEVELOPMENTS

Telecom Sector

Indian Telecom sector is one of the fastest growing sectors in India. Within period of 10 years Mobile Telecommunication system in India become second largest world wireless network as Indian mobile subscriber base increased to 846.32 million as on 31.03.2011.

Tele-density in the country has been steadily increasing. The growth in average Tele-density is driven mostly by increase in wireless subscriber base. The overall Tele-density has increased to 70.89% at the end of March 2011.

The growth in number of broadband connections in India has accelerated since 2006. Number of Broadband subscribers increased to 11.89 million at the end of March 2011, registering a year on year growth of 35.49%. The issuance of new 3G and 4G licenses will further boost the Broadband growth in India.

The uncertainty over Telecom policy and huge cash outflow of Telecom License fee by Telecom operators has temporarily halted the network expansion.

NEW OPPORTUNITIES IN TELECOM SECTOR

Broadband Telecom Equipments

What Telecom is to economy, Telecom infrastructure is to Telecom services? Adequate infrastructure becomes the bedrock for reliable telecom services. Data services such as video calling, mobile banking and mobile entertainment are expected to take off in a major way in the year 2011. Mobile operators, device makers, application developers and equipment vendors are all gearing up towards making the entire ecosystem ready to meet consumer expectations from the third generation (3G) and BWA technologies. Several countries are pledging investment in the new telecom infrastructure. In the them for example, the economic stimulus supported Broadband Technology Opportunities Program allocates a major share of its budget to fund broadband-related projects in un served and underserved areas, including for the requisite infrastructure.

Growth of broadband services has so far been through variants of ADSL technology on copper network, 3G dongles on 3G wireless Networks and GEPON on Optical Fiber Networks. Future growth is expected through wireless technologies and on fibre. The sharing of copper loop through unbundling or bit stream sharing which was at one time considered important for increasing broadband penetration has lost relevance especially for rural areas. It is now increasingly becoming evident that in the short wireless broadband technologies would be key to growth of broadband while in the longer term fibre based technologies would be right option.

The main thrust of the National Broadband Plan is to create a robust fibre based broadband infrastructure for proliferation of broadband related services in urban and rural areas. The National Broadband Plan envisages provision of 75 million broadband connections (17 million DSL, 30 million cables and 28 million wireless broadband) by the year 2012 and 160 million broadband connections (22 million DSL, 78 million cables and 60 million wireless broadband) by the year 2014. The plan involves setting up of an open access fibre optic network connecting all Gram Panchayats by the year 2012 and all habitations with population of 500 and above by the year 2013. The Network will provide easy access to high speed data and information to citizens, promoting thereby the efforts in the field of education, health etc. This will also boost demand for optic fiber cables and Customer Premise Equipments (CPEs).

Power Sector

Government of India has a mission of ‘Power for all by 2012’ .This mission would require that the installed generation capacity of the country to be at least 2 lacs MW by 2012. In order to ensure that the increased power generation reaches the entire country investments have been allocated to the transmission and distribution area. The distribution targets include electrification of 1 lac villages, which will greatly enhance demand for MV and LV cables from utilities.

The energy cable market in India was estimated USD 3 billion by 2010 increasing at a compound annual growth of over 10%.

The fastest growing segment is the high voltage cable (HV) which is projected to be double in the next three years. The rapid phase of urbanization is also expected to contribute to enhanced demand for underground HV cable installations in place of overhead lines. In MV and LV power cable field the growth is fuelled by the boom in power industrial reality and construction sector.

OUTLOOK

Since Significant investment is in power and telecom sectors, the outlook for the Company seems to be good and shall largely depends upon the spending from government on development of infrastructure in the field of telecom and power, the performance shall largely depend on the interest regime and economic policy. The existing line of products and services are being continuously developed. The focus of the Company will remain on supply of Company’s product, equipment and services with increased attention on the business module where financial investment is less, margins are better and cash flow is faster.

SUBSIDIARIES

Nextera Telecom Private Limited, Teracom HX Private Limited, Teracom Infosolutions Private Limited continue to be the subsidiaries of The Company. Maxolar Clean Energy Private Limited and Teramer Securities Private Limited have become subsidiaries of The Company and Scantec (India) Private Limited had been amalgamated with The Company during the year.

Pursuant to the General Circular No. 2/2011 dated February 8, 2011 issued by the Ministry of Corporate Affairs, Government of India, the Board of Directors have consented for not attaching the Balance Sheet, Profit and Loss account and other documents as set out in Section 212(1) of the Companies Act, 1956, in respect of its subsidiary companies for the year ended March 31, 2011. Annual accounts of the above subsidiary companies along with the related information shall be made available to any member of the Company who may be interested in obtaining the same. Statement pursuant to Sec.212 of the Companies Act 1956 is annexed herewith.

FORM 8

Corporate identity number of the company	U24241GA2001PLC002950
Name of the company	TERACOM LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 250, Kundaim Industrial Estate, Kundaim, Goa – 403 115, India E-Mail: phajela@teracom.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10152783
Type of charge	Immovable Property
Particular of charge holder	Standard Chartered Bank, CRC, Narain Manzil, 23, Barakhambha Road, New Delhi – 110001, India Email: anurag.srivastava@standardchartered.com
Nature of instrument creating charge	Supplemental memorandum of entry
Date of instrument Creating the charge	31.03.2011
Amount secured by the charge	Rs.251.550 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per agreement Terms of Repayment As per agreement Margin As per agreement Extent and Operation of the charge Extent and Operation-100% Others The Security by Way of 1st Exclusive Charge Over Company’s Immovable Property Had Been Created In Favour of SCB For The Purpose of Securing of ECB Facility To The Extent Of USD 5000000 (Facility Amount) Granted To Company (Equity .To Inr 25,15,50,000) at the Rate of Rs.50.31 Per USD.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Exclusive 1st charge by equitable mortgage over company’s immovable property i.e. non agricultural land comprised in Survey No.34, mea 9105 Sq. Mtrs Within the Village Panchayat limit of kundaim Taluka Ponda, District North Goa together with all building and structures thereon or to be thereon or to be erected hereafter fixed plant & machinery etc. attached to the earth or permanently fastened to anything attached to earth.
Date of instrument modifying the charge	21.01.2010
Particulars of the present modification	The immovable Property at S.No.34 Mea 9105 sq. mtr. Kundaim, Goa together with all movable and immovable and machinery installed/to be installed, all Building and structures thereon erected /to be erected which secures SCB loan of Rs.251.550 millions on first charge basis shall also be secured on 2nd pari passu charge basis the credit facilities of WC cons. Bank Totaling to Rs.6881.300 millions comprising PNB Rs.2450.000 millions ,ICICI Bank Rs.1500.000 millions ,IDBI Bank Rs.1050.000 millions, Yes Bank Rs.500.000 millions , Vijaya Bank Rs.500.000 millions and SBI Rs.881.300 millions

CONTINGENT LIABILITY

Particulars	31.03.2011	31.03.2010
	Rs. In Millions
Unexpired Letters of Credit (margin money kept by way of fixed deposits Rs. 144,758,862 Previous Year Rs. 143,662,750)	511.196	1157.626
Letters of guarantee/bank guarantee issued by Bank (margin money kept by way of fixed deposits Rs.101,263,399 Previous Year Rs. 78,140,070)	1844.940	1256.522
Corporate guarantees given by the company to the Banks on behalf of Subsidiaries & others	171.000	321.000
Capital contracts to be executed (net of Advances)	29.902	158.425
Claims against the company not acknowledged as debt:
- towards excise duty, custom duty, income tax & entry tax etc.	44.221	30.312
- by the customer	104.667	104.667
TOTAL	2737.1571	3059.783

FIXED ASSETS

v Leasehold Land

v Building

v Plant and Machinery

v Vehicles

v Office Equipments

v Computer and Printer

v Furniture and Fixture

v Software

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.50.57
UK Pound	1	Rs.79.57
Euro	1	Rs.66.50

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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		64

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.