MIRA INFORM REPORT

Report Date :

21.03.2012

IDENTIFICATION DETAILS

Name :	THERMO CABLES LIMITED
Registered Office :	28, Nagarjuna Hills, Punjagutta, Hyderabad – 500082, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.05.1990
Com. Reg. No.:	01-011331
Capital Investment / Paid-up Capital :	Rs.142.500 Millions
CIN No.: [Company Identification No.]	U31300AP1990PLC011331
TAN No.: [Tax Deduction & Collection Account No.]	HYDT00394C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Instrumentation Signal Cables, Power / Control Cables, Thermocouple Extension / Compensating Cables, Telephone Cables, Fire Survival / Resistant Cables and Insulated Cables and Wires for High Temperature applications.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (34)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 650000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company is under pressure. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some cautions.

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/ Corporate Office :	28, Nagarjuna Hills, Punjagutta, Hyderabad – 500082, Andhra Pradesh, India
Tel. No.:	91-40-44429292
Fax No.:	91-40-23350583
E-Mail :	sabari@thermopads.com padmaja271@rediffmail.com info@thermopads.com
Website :	http://www.thermocables.com
Branch Offices :	Located at : · Mumbai · Delhi · Chennai · Kolkata · Bangaluru · Pune · Baroda · Bhubaneswar
Overseas Office :	Thermopads UK Limited 16 Ascot Court, Groove End Road, London, UK, NW8 9RY
Tel. No.:	+44 (0) 207 286 9569
E-Mail :	medhapattem@thermopads.com

DIRECTORS

As on 20.09.2011

Name :

Mr. Nandkishor Ghurka

Designation :

Director

Address :

28, Nagarjuna Hills, Punjagutta, Hyderabad- 500082, Andhra Pradesh, India

Date of Birth/Age :

27.05.1948

Qualification :

M Tech

Date of Appointment :

30.05.1990

DIN No.:

01082250

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	U33125TN1980PTC047707	TOSHNIWAL BROTHERS (HYD) PRIVATE LIMITED	Director	15/12/1980	15/12/1980	-	Active	NO
2	U31300AP1990PLC011331	THERMO CABLES LIMITED	Director	30/05/1990	30/05/1990	-	Active	NO
3	U24110AP1992PTC013781	THERMOPADS PRIVATE LIMITED	Managing director	7/12/2011	29/01/1992	-	Active	NO
4	U24110AP1998PTC029118	THERMO POLYMERS PRIVATE LIMITED	Managing director	7/12/2011	26/03/1998	-	Active	NO
5	U24220AP2005PTC046567	THERMOSYSTEMS PRIVATE LIMITED	Managing director	7/12/2011	16/06/2005	-	Active	NO
6	U74999AP2007PTC056343	AQUARIUS AEROSPACE SERVICES PRIVATE LIMITED	Director	16/11/2007	16/11/2007	-	Active	NO

Name :

Ms. Uma Ghurka

Designation :

Director

Address :

28, Nagarjuna Hills, Punjagutta, Hyderabad- 500082, Andhra Pradesh, India

Date of Birth/Age :

15.01.1954

Qualification :

B Tech

Date of Appointment :

30.05.1990

DIN No.:

00351117

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	U31300AP1990PLC011331	THERMO CABLES LIMITED	Managing director	1/07/2011	30/05/1990	-	Active	NO
2	U24110AP1992PTC013781	THERMOPADS PRIVATE LIMITED	Whole-time director	29/01/1992	29/01/1992	-	Active	NO
3	U24110AP1998PTC029118	THERMO POLYMERS PRIVATE LIMITED	Director	26/03/1998	26/03/1998	-	Active	NO
4	U80900AP2005NPL045601	CONFEDERATION OF WOMEN ENTREPRENEURS	Director	11/03/2005	11/03/2005	-	Active	NO
5	U24220AP2005PTC046567	THERMOSYSTEMS PRIVATE LIMITED	Director	19/02/2007	19/02/2007	-	Active	NO
6	U74999AP2007PTC056343	AQUARIUS AEROSPACE SERVICES PRIVATE LIMITED	Director	16/11/2007	16/11/2007	-	Active	NO
7	U25200AP2010PTC067387	THERMO POLYMATRIX PRIVATE LIMITED	Managing director	5/03/2010	5/03/2010	-	Active	NO

Name :

Mr. Ghurka Chetan

Designation :

Director

Address :

28, Nagarjuna Hills, Punjagutta, Hyderabad- 500082, Andhra Pradesh, India

Date of Birth/Age :

01.08.1980

Qualification :

B Tech

Date of Appointment :

19.02.2007

DIN No.:

01224944

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	U31300AP1990PLC011331	THERMO CABLES LIMITED	Director	19/02/2007	19/02/2007	-	Active	NO
2	U24220AP2005PTC046567	THERMOSYSTEMS PRIVATE LIMITED	Director	5/02/2008	5/02/2008	-	Active	NO
3	U25200AP2010PTC067387	THERMO POLYMATRIX PRIVATE LIMITED	Director	5/03/2010	5/03/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 20.09.2011

Names of Shareholders	No. of Shares
Mr.N.K.Ghurka	2486344
Mrs.Uma Ghurka	1340000
Mr.Chetan Ghurka	685000
Mrs.Nidhi Ghurka	1142500
Kaiuram Nand Kishore HUF	133000
Mrs Medha Ghurka	1322500
NK Ghurka -HUF	628560
Smt. Ganga Bai Ghurka	6216
Mrs Ratandevi Toshrtiwal	5040
Mr.Prabhat Toshniwal	840
Mr.Pradeep Pattern	3000000
Thermopads Private Limited	3500000
Thermopads Private Limited	5000000
Total	19250000

Equity Share Break up (Percentage of Total Equity)

As on 20.09.2011

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	15.58
Bodies corporate	44.14
Directors or relatives of Directors	36.32
Other top fifty shareholders	3.96
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Instrumentation Signal Cables, Power / Control Cables, Thermocouple Extension / Compensating Cables, Telephone Cables, Fire Survival / Resistant Cables and Insulated Cables and Wires for High Temperature applications.

Products :

PRODUCT DESCRIPTION	ITC CODE NO.
Instrumentation Cables/ Control Cables	24

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Instrumentation/ T.C. Extension Cables	Mtrs	N.A	27000000	18729390

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of 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	453.184	341.498
Other debt secured	17.772	8.666
Total	470.956	350.164
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Public deposits unsecured	63.161	10.705
Total	63.161	10.705

Banking Relations :	--
Auditors :
Name :	B. Narsing Rao and Company Chartered Accountants
Address :	F No. 610, 6^th Floor, Babu Khan Estate, Basheer Bagh, Hyderabad – 500001, Andhra Pradesh, India
PAN.:	AACFB1524C
Related Party :	· Thermopads Private Limited · Thermopolymers Private Limited · Thermo Systems Private Limited

CAPITAL STRUCTURE

As on 20.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
19500000	Equity Shares	Rs.10/- each	Rs.195.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
19250000	Equity Shares	Rs.10/- each	Rs.192.500 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
14500000	Equity Shares	Rs.10/- each	Rs.145.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14250000	Equity Shares	Rs.10/- each	Rs.142.500 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		142.500	75.000	40.000
2] Share Application Money		25.000	0.000	0.000
3] Reserves & Surplus		11.365	41.715	61.663
4] (Accumulated Losses)		(17.231)	0.000	0.000
NETWORTH		161.634	116.715	101.663
LOAN FUNDS
1] Secured Loans		470.956	350.164	124.831
2] Unsecured Loans		63.161	10.705	21.786
TOTAL BORROWING		534.117	360.869	146.617
DEFERRED TAX LIABILITIES		4.943	4.248	1.988
TOTAL		700.694	481.832	250.268
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		254.388	224.465	66.246
Capital work-in-progress		3.209	26.883	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	191.933	100.391	57.081
	Sundry Debtors	400.899	273.635	190.306
	Cash & Bank Balances	0.469	0.116	11.135
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	83.180	66.023	18.350
Total Current Assets		676.481	440.165	276.872
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	215.698	195.699	77.277
	Other Current Liabilities	17.686	14.216	4.903
	Provisions	0.000	0.000	10.670
Total Current Liabilities		233.384	209.915	92.850
Net Current Assets		443.097	230.250	184.022
MISCELLANEOUS EXPENSES		0.000	0.234	0.000
TOTAL		700.694	481.832	250.268

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1542.990	1059.179	928.895
		Other Income	62.895	4.236	4.229
		TOTAL (A)	1605.885	1063.415	933.124
Less	EXPENSES
		Consumption materials changes inventories	1381.839	916.817	835.561
		Manufacturing service costs	32.789	22.046
		Employee related expenses	104.339	76.695
		Administrative selling other expenses	42.432	31.983
		Prior Period Items	0.644	0.022
		TOTAL (B)	1562.043	1047.563	835.561
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		43.842	15.852	97.563
Less	FINANCIAL EXPENSES (D)		58.994	21.625	19.565
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(15.152)	(5.773)	77.998
Less/ Add	DEPRECIATION/ AMORTISATION (F)		31.733	11.916	8.088
	PROFIT BEFORE TAX (E-F) (G)		(46.885)	(17.689)	69.910
Less	TAX (H)		0.696	2.259	24.981
	PROFIT AFTER TAX (G-H) (I)		(47.581)	(19.948)	44.929
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		30.349	50.297	14.541
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.000	4.493
		Dividend	0.000	0.000	0.000
		Tax on Dividend	0.000	0.000	4.680
	BALANCE CARRIED TO THE B/S		(17.232)	30.349	50.297
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	3.182	0.295	15.458
	TOTAL EARNINGS		3.182	0.295	15.458
	IMPORTS
		Raw Materials and Capital Goods	0.504	10.648	12.989
	TOTAL IMPORTS		0.504	10.648	12.989
	Earnings Per Share (Rs.)		(6.13)	(2.66)	17.48

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.96	1.88	4.81
Net Profit Margin (PBT/Sales)	(%)	3.04	1.67	7.53
Return on Total Assets (PBT/Total Assets}	(%)	5.04	2.66	20.37
Return on Investment (ROI) (PBT/Networth)		0.29	0.15	0.69
Debt Equity Ratio (Total Liability/Networth)		4.75	4.89	2.36
Current Ratio (Current Asset/Current Liability)		2.90	2.10	2.98

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS DURING THE YEAR 2010-11:

During the FY’11 the company achieved a growth rate of 50.87% over FY 10 and with its new plant at Jadcherla being fully operational expects to achieve sales at Rs.216.50 crores in FY ’12. The company has explored new markets in eastern India during 2010-11 to customers like Steel Authority of India Limited, Nicco Corporation, Sriram EPC etc., and exported to new customers in United Arab Emirates. However, inspite of all efforts to achieve a good top line growth the company was unable to breakeven in FY ’11 and posted a loss of Rs.47.500 Millions. This was mainly because the new plant took time to stabilize and also due to volatility in copper prices which is the main raw material for the company’s products.

FIXED ASSETS

· Land

· Factory Building/Shed

· Plant and Machinery

· Computers

· Computer Software

· Furniture and Fixtures

· Motor Vehicles

· Office Equipments

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.50.25
UK Pound	1	Rs.79.76
Euro	1	Rs.66.52

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		34

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.