MIRA INFORM REPORT

Report Date :

02.12.2014

IDENTIFICATION DETAILS

Name :	THERMAX LIMITED
Registered Office :	D-13, MIDC Industrial Area, R.D. Aga Road, Chinchwad, Pune – 411019, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	30.06.1980
Com. Reg. No.:	11-022787
Capital Investment / Paid-up Capital :	Rs.238.300 Millions
CIN No.: [Company Identification No.]	L29299PN1980PLC022787
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	PNET00953B PNET00081E PNET03854E PNET00017D
PAN No.: [Permanent Account No.]	AAACT6284E AAACT3910D
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Solar Power Generation, Water Treatment Plant, Industrial Boiler, Air Pollution Control System.
No. of Employees :	4100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (62)

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well-established company having fine track record. Sales turnover of the company has declined which resulting into dip in profit of the company during financial year 2014. However, the rating reflects company’s strong market position in the energy segment business supported by sound financial risk profile and adequate liquidity position of the company. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

N E W S

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Fund Based Limits = AA+
Rating Explanation	High degree of safety and carry very low credit risk.
Date	January 2014

Rating Agency Name	ICRA
Rating	Short Term Non Fund Based Limits = A1+
Rating Explanation	Have very strong degree of safety and carry lowest credit risk.
Date	January 2014

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION DECLINED

Management No Co-Operative (91-20-66051200)

LOCATIONS

Registered Office/ Factory 1 :	D-13, MIDC Industrial Area, R.D. Aga Road, Chinchwad, Pune – 411019, Maharashtra, India
Tel. No.:	91-20-27475941- 42/ 66122100
Fax No.:	91-20-27472049
E-Mail :	dtrivedi@thermaxindia.com imohanch@thermaxindia.com info@thermaxindia.com slalai@thermaxindia.com amathur@thermaxindia.com
Website :	http://www.thermaxindia.com http://www.thermaxchem.com http://www.tbwindia.com http://www.thermaxsoftware.com
Corporate Office :	Thermax House, 14, Mumbai – Pune Road, Wakdewadi, Pune – 411003, Maharashtra, India
Tel. No.:	91-20-66051200 / 25542122
Fax No.:	91-20-25542242
E-Mail :	imohanch@thermaxindia.com
Factory 2 :	D-1 Block, MIDC Industrial Area, Chinchwad, Pune - 411019, Maharashtra, India
Factory 3 :	At Paudh, Post Mazgaon Taluka Khalapur, District Raigad – 410206, Maharashtra, India
Factory 4 :	Gat No. 125, Crusher Road, At Post Rohakal, Taluka – Savli, District Vadodara – 391775, Gujarat, India
Factory 5 :	Plot No.21/1-2-3, GIDC Manjusar, Taluka - Savli, District - Vadodara – 391775, Gujarat, India
Factory 6 :	Survey No-169, Village Dhrub, Taluka Mundra, Mundra – 370201, District Kutch, Gujarat, India
Factory 7 :	Plot No 903/1, GIDC, Jhagadia Industrial Estate, Jhagadia, District Bharuch – 393110, Gujarat, India
Factory 8 :	Plot No. T-1, MIDC, Chincholi, Taluka Mohol, District Solapur – 413255, Maharashtra, India
Factory 9 :	Gat No. 125, Crusher Road, At Post Rohakal, Taluka Khed, District Pune – 410501, Maharashtra, India
Factory 10 :	4th Floor, Energy House, D-II Block, Plot No. 38 and 39, MIDC, Chinchwad, Pune – 411019, Maharashtra, India
Factory 11 :	Dhanrajmahal 2nd floor, Chhatrapati Shivaji Maharaj Marg, Near Gateway of India, Colaba, Mumbai - 400039, Maharashtra, India
Tel No.:	91-22-22045391/ 2
Fax No.:	91-22-22040859
Branch Office :	409-411, Mahakant, Opposite V.S. Hospital, Ashram Road, Ahmedabad – 380006, Gujarat, India
Tel. No.:	91-79-26577073
Fax No. :	91-79-26577270

DIRECTORS

As on 31.03.2014

Name :	Ms. Meher Pudumjee
Designation :	Chairperson
Name :	Mr. M.S. Unnikrishnan
Designation :	Managing Director and Chief Executive Officer
Name :	Mr. Anu Aga
Designation :	Director
Name :	Dr. Raghunath A. Mashelkar
Designation :	Director
Name :	Dr. Valentin Von Massow
Designation :	Director
Name :	Mr. Nawshir Mirza
Designation :	Director
Name :	Mr. Tapan Mitra
Designation :	Director
Name :	Mr. Pheroz Pudumjee
Designation :	Director
Name :	Dr. Jairam Varadaraj
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Gajanan P. Kulkarni
Designation :	Vice President – Legal and Company Secretary
Name :	Mr. Amitabha Mukhopadhyay
Designation :	Group CFO and Member – Executive Council
Name :	Mr. M.S. Unnikrishnan
Designation :	Chief Executive Officer
Executive Council:
Name :	Mr. Ravinder Advani
Designation :	Key Executive
Name :	Mr. K. Chakravarthy
Designation :	Key Executive
Name :	Mr. Sharad Gangal
Designation :	Key Executive
Name :	Mr. Pravin Karve
Designation :	Key Executive
Name :	Mr. Amitabha Mukhopadhyay
Designation :	Key Executive
Name :	Mr. Hemant Mohgaonkar
Designation :	Key Executive
Name :	Mr. Rajan Nair
Designation :	Key Executive
Name :	Mr. R V Ramani
Designation :	Key Executive
Name :	Dr. R.R. Sonde
Designation :	Key Executive
Name :	Mr. M. S. Unnikrishnan
Designation :	Key Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	0	0.00
Bodies Corporate	73849305	61.98
Any Others (Specify)	6000	0.01
Directors/Promoters & their Relatives & Friends	6000	0.01
Sub Total	73855305	61.98
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	73855305	61.98
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	7382824	6.20
Financial Institutions / Banks	2071991	1.74
Foreign Institutional Investors	18010838	15.12
Sub Total	27465653	23.05
(2) Non-Institutions
Bodies Corporate	3773996	3.17
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	6496415	5.45
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	7124077	5.98
Any Others (Specify)
Non Resident Indians	282567	0.24
Trusts	30	0.00
Clearing Members	29513	0.02
Hindu Undivided Families	128744	0.11
Sub Total	17835342	14.97
Total Public shareholding (B)	45300995	38.02
Total (A)+(B)	119156300	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	119156300	0.000

BUSINESS DETAILS

Line of Business :

Manufacturer of Solar Power Generation, Water Treatment Plant, Industrial Boiler, Air Pollution Control System.

Products :

Product Descriptions	ITC Code
Steam or Other Vapour Generating Boilers	8402.10
Power Plant	--
Purifying Machinery for Liquid or Gases	8421.10

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Not Divulged

No. of Employees :

4100 (Approximately)

Bankers :

• Union Bank of India
• Bank of Baroda
• Canara Bank
• Citibank N.A.
• Corporation Bank
• ICICI Bank Limited
• State Bank of India
• HSBC Bank

Facilities :

(Rs. In Millions)

SECURED LOANS	31.03.2014	31.03.2013
Long Term Borrowings
From Other than Banks	1.000	1.300
Short Term Borrowings
From Banks	926.600	119.100
From Other than Banks	0.500	0.000
Total	928.100	120.400

Auditors :
Name :	B.K. Khare and Company Chartered Accountants
Address :	706/ 707, Sharda Chambers, New Marine Lines, Mumbai – 400020, Maharashtra, India
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :
Holding Company :	RDA Holdings Private Limited
Wholly Owned Subsidiaries Domestic :	Thermax Sustainable Energy Solutions Limited Thermax Engineering Construction Company Limited Thermax lnstrumentation Limited Thermax Onsite Energy Solutions Limited Thermax SPX Energy Technologies Limited (Joint venture with SPX Netherlands BV) Thermax Babcock and Wilcox Energy Solutions Private Limited (Joint venture with Babcock and Wilcox India Holdings Inc)
Wholly Owned Subsidiaries Overseas :	Thermax Europe Limited, UK Thermax International Limited, Mauritius Thermax Inc., USA. Thermax do Brasil Energia eEquipamentos Ltda, Brazil Thermax Hong Kong Limited, Hong Kong Thermax (Zhejiang) Cooling and Heating Engineering Company Limited, China Thermax Netherlands B. V. Thermax Denmark ApS Danstoker A/ S, Denmark Omnical Kessel and Apparatebau GmbH, Germany Ejendomsanpartsselskabet Industrivej Nord 13, Denmark Rifox-Hans Richter GmbH, Germany Thermax Sdn. Bhd., Malaysia Boilerworks A/S, Denmark Boilerworks Properties ApS, Denmark Thermax Engineering Singapore Pte. Limited
Joint Ventures :	Thermax SPX Energy Technologies Limited Thermax Babcock and Wilcox Energy Solutions Private Limited
Enterprise, over which control is exercised :	Thermax Social Initiative Foundation KRA Holdings Private Limited ARA Trusteeship Company Private Limited Shuffle Realtors Private Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
375000000	Equity Shares	Rs.2/- each	Rs.750.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
119156300	Equity Shares	Rs.2/- each	Rs.238.300 Millions

a) Reconciliation of the number of shares

Equity Shares	No. of Shares	Rs. in Millions
Shares outstanding at the beginning of period	119156300	238.300
Shares outstanding at the end of period	119156300	238.300

b) Rights, preferences and restrictions attached to shares

Equity Shares: The Company has one class of equity shares having a par value of Rs. 2 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

c) Equity Shares held by holding company

64328500 shares are held by holding company, RDA Holdings Private Limited

d) Details of equity shares held by shareholders holding more than 5% shares:

Name of Shareholder	Number of Shares	% holding
RDA Holding and Trading Private Limited	64328500	53.99
Anu Aga	6888305	5.78

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	238.300	238.300	238.300
(b) Reserves & Surplus	20,011.600	18,454.400	15,773.500
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	20,249.900	18,692.700	16,011.800
(3) Non-Current Liabilities
(a) long-term borrowings	6.000	4.300	0.800
(b) Deferred tax liabilities (Net)	136.400	247.200	229.800
(c) Other long term liabilities	1,593.200	418.900	219.600
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	1,735.600	670.400	450.200
(4) Current Liabilities
(a) Short term borrowings	1,887.100	119.100	1,663.600
(b) Trade payables	8,412.200	8,880.500	8,954.400
(c) Other current liabilities	13,874.000	10,346.200	10,160.000
(d) Short-term provisions	2,379.700	2,557.400	2,457.300
Total Current Liabilities (4)	26,553.000	21,903.200	23,235.300
TOTAL	48,538.500	41,266.300	39,697.300
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	6,098.500	5,275.500	4,988.000
(ii) Intangible Assets	305.700	270.600	328.200
(iii) Capital work-in-progress	235.000	909.000	419.700
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	4,620.800	3,936.900	3,509.700
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	208.700	261.700	301.500
(e) Other Non-current assets	1,731.500	1,983.000	1,020.000
Total Non-Current Assets	13,200.200	12,636.700	10,567.100
(2) Current assets
(a) Current investments	6,334.400	4,102.900	2,017.200
(b) Inventories	2,528.500	2,103.300	2,792.200
(c) Trade receivables	13,523.600	14,238.900	12,456.300
(d) Cash and cash equivalents	3,201.400	2,226.200	5,697.500
(e) Short-term loans and advances	1,879.000	1,250.500	1,581.200
(f) Other current assets	7,871.400	4,707.800	4,585.800
Total Current Assets	35,338.300	28,629.600	29,130.200
TOTAL	48,538.500	41,266.300	39,697.300

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	43,021.600	46,908.700	53,040.600
		Other Income	643.000	730.100	704.900
		TOTAL (A)	43,664.600	47,638.800	53,745.500
Less	EXPENSES
		Cost of Materials Consumed	26,590.200	30,584.600	35,283.600
		Purchases of Stock-in-Trade	1,098.100	1,178.900	1,558.800
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(40.800)	(26.300)	(33.800)
		Employees benefits expense	4,226.400	4,015.700	3,874.300
		Other expenses	7,055.600	6,084.500	6,518.600
		TOTAL (B)	38,929.500	41,837.400	47,201.500
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		4,735.100	5,801.400	6,544.000
Less	FINANCIAL EXPENSES (D)		88.500	96.500	65.500
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4,646.600	5,704.900	6,478.500
Less/ Add	DEPRECIATION/ AMORTISATION (F)		577.700	548.600	469.500
	PROFIT BEFORE TAX (E-F) (G)		4,068.900	5,156.300	6,009.000
Less	TAX (H)		1,539.200	1,656.700	1,940.400
	PROFIT AFTER TAX (G-H) (I)		2,529.700	3,499.600	4,068.600
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		13088.300	10914.600	8235.400
Less	APPROPRIATIONS
		Transfer to General Reserve	260.000	350.000	420.000
		Proposed Equity Dividend	714.900	834.100	834.100
		Tax on Dividend	121.500	141.800	135.300
	BALANCE CARRIED TO THE B/S		14521.600	13088.300	10914.600
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods on FOB	10145.500	6567.200	7257.300
		Other Earnings	238.400	140.000	61.400
	TOTAL EARNINGS		10383.900	6707.200	7318.700
	IMPORTS
		Raw Materials	1753.700	1311.900	4649.700
		Components & Spares	932.300	708.000	1167.800
		Consumables	69.800	51.200	63.200
		Capital Goods	111.200	146.200	31.700
	TOTAL IMPORTS		2867.000	2217.300	5912.400
	Earnings Per Share (Rs.)		21.23	29.37	34.15

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	5.88	7.46	7.67
Operating Profit Margin (PBDIT / Sales)	(%)	11.01	12.37	12.34
Return on Total Assets (PBT/Total Assets}	(%)	9.31	14.16	16.80
Return on Investment (ROI) (PBT/Networth)		0.20	0.28	0.38
Debt Equity Ratio (Total Debt /Networth)		0.09	0.01	0.10
Current Ratio (Current Asset/Current Liability)		1.33	1.31	1.25

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	238.300	238.300	238.300
Reserves & Surplus	15773.500	18454.400	20011.600
Net worth	16011.800	18692.700	20249.900
long-term borrowings	0.800	4.300	6.000
Short term borrowings	1663.600	119.100	1887.100
Total borrowings	1664.400	123.400	1893.100
Debt/Equity ratio	0.104	0.007	0.093

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	53,040.600	46,908.700	43,021.600
		(11.561)	(8.287)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	53,040.600	46,908.700	43,021.600
Profit	4,068.600	3,499.600	2,529.700
	7.67%	7.46%	5.88%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	No
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
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 involved in	Yes
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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATION DETAILS:

Case Details
Bench:- Bombay
Presentation Date:-				19/09/2014
Lodging No.:-		CEXAL/310/2014		Filing Date:-		19/09/2014
Petitioner:-	COMMISSIONER OF CENTRAL EXCISE PUNE		Respondent:-		THERMAX LIMITED
District:-	MUMBAI
Bench:-	DIVISION
Status:-	Pre-Admission		Category :		Sales Tax References
Act :-	Central Excise and Salt Act		Under Section :-		35(G)

UNSECURED LOAN:

Particulars	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
Long Term Borrowings
From Other than Banks	5.000	3.000
Short Term Borrowings
From Banks	960.000	0.000
Total	965.000	3.000

ANNUAL PERFORMANCE

The company posted a total revenue of Rs.43665.000 Millions for the financial year 2013-14, against last year’s Rs.47639.000 Millions, a reduction of 8.3%. During the year, the manufacturing sector has had a continued decline in capacity utilisation. Capacity additions, both in brown field and green field, remained subdued barring a few sectors like food, food processing, pharma and textiles. The core sectors such as power, steel, cement and infrastructure were virtually stagnant in terms of investment and expansion. Moreover, orders onhand were executed at a slower pace in comparison to the previous year owing to a lack of sense of urgency within the user industry. The limited number of orders finalised in the market were fiercely competed by all the players, reducing margins substantially. The company has strived to navigate its business through these challenging times by focusing on improving internal efficiencies.

Thermax’s Energy business – Boiler and Heater, Power, Cooling and Heating divisions and the Solar performance unit – contributed 76% of the total revenue while the Environment business comprising Air Pollution Control, Water &Waste Solutions and Chemical divisions accounted for the remaining 24% – almost the same as last year.

During the year, the revenue from international markets including deemed exports increased by 11.9% to Rs.11011.000 Millions against Rs.9839.000 Millions last year. In order to reverse a declining trend of revenues, the company is focusing its energies in international markets to further consolidate its position in the current year.

Profit before tax at Rs.4069.000 Millions was 9.3% of the total revenue, compared to Rs.5156.000 Millions, 10.8% in the previous year. During adverse market conditions, The Company continued to invest in research and innovation initiatives. Profit after tax stood at Rs.2530.000 Millions compared to Rs.3500.000 Millions in the previous year. Earnings per share (EPS) declined to Rs.21.23 from Rs.29.37 in FY 2012-13.

Order booking for the year was Rs.53940.000 Millions against Rs.48590.000 Millions last year, registering an increase of 11%. The company completed the year with an order backlog of Rs.53890.000 Millions as against Rs.43570.000 Millions in FY 2012-13. As stated earlier, FY 2013-14 has been a challenging year for the capital goods sector. The improved order intake was facilitated by two specific projects in the oil and gas sector and an improvement in exports.

Profit after tax on a consolidated basis is lower than the stand-alone results owing to the losses incurred by Thermax (Zhejiang) Cooling & Heating Engineering Co. Private Limited. (TZL) and the company’s share of losses in the joint venture subsidiaries, Thermax Babcock and Wilcox Energy Solutions Private Limited (TBWES) and Thermax SPX Energy Technologies Private Limited. (TSPX).

The manufacturing facility of TBWES has been completed and the commercial operations commenced in December 2013.

FUTURE PLAN OF ACTION

Renewable energy technologies will continue to be focal areas. Solar thermal technologies for power, heating, cooling will continue to be thrust areas for development of technologies. The company will continue to focus on the development of environmental technologies in the domain of air purification, air pollution control and waste water treatment.

OVERVIEW OF COMPANY OPERATIONS

Tough market conditions continued to affect the company’s performance. The project businesses accounting for nearly two-thirds of the company’s turnover struggled to maintain their growth momentum and provided returns below par. Owing to negative sentiments prevailing in the market, pace of execution of projects has slowed down.

This has had a noticeable impact on accounts receivable in some of the businesses. The company posted lower results for FY 2013-14, with a total revenue of Rs.43665.000 Millions and a net profit after tax of Rs.2530.000 Millions.

However, in a challenging year, the company was able to marginally improve its order booking from Rs.48590.00 Millions (2012-13) to Rs.53940.000 Millions. The most significant among orders received last year was the Rs.13500.000 Millions order received from an Indian petrochemical company for nine CFBC boilers to support their expansion plans. The order booking during the year was mainly from petrochemical, cement, food processing, textile, chemical, metal, pharma, sugar and distillery. During the year, the product divisions introduced new offerings for the customers. A separate section in this report provides information on these new products.

The service business of the company continued to grow. Plant improvements, fuel shift retrofits and energy enhancement projects improved the performance of the company’s service business by 30.6% over the previous year. Income from exports including deemed exports at Rs.11011.000 Millions (Rs.9839.000 Millions, the previous year) accounted for 26% of the total income. South East Asia and the Middle East continued to contribute the major share of export earnings. Despite the better order carry-forward position, in view of the time required for the investment climate to improve, 2014-15 is not expected to be significantly different for the company. However, it is cautiously optimistic about a likely positive shift in the economic environment. Coupled with its rigorous operational excellence and cost optimisation strategies, it is also putting in place a programme to take its selective internationalization programme to its next level for improved revenue and profits.

NEW PRODUCTS

The triple effect absorption chiller launched earlier by the Cooling business unit for a technology demonstration project has been commercialised in the Indian market. The chiller reduces energy consumption by 25%. One such chiller has been installed at Thermax’s own facility in Chinchwad, to demonstrate how energy efficient air conditioning for multiple locations can be organised from a central source.

The Heating business group launched a versatile solid fuel fired steam boiler, ComBloc, that offers customers the flexibility to switch between a wide variety of solid fuels depending on availability and cost. A fully packaged boiler, it helps clients avoid the hassles of civil work at site and longer installation time.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10245831	30/09/2010	2,868,580.00	Department of Biotechnology	6-8th Floor, Block No. 2, CGO Complex, Lodhi Road, Delhi - 110003, India	A97082846
2	90090872	26/03/2010 *	27,850,000,000.00	Union Bank of India Limited	Industrial Finance Branch, 619, Sachapir Street, Camp, Pune, Maharashtra - 411001, India	A82908773
3	90084773	03/07/1998 *	1,500,000.00	Union Bank of India	Industrial Finance Branch, Camp, Pune, Maharashtra - 411001, India	-
4	90084586	01/09/1998 *	26,000,000.00	Corporation Bank	Industrial Finance Branch, Pune Mumbai Road Wakde Wadi, Pune, Maharashtra - 411003, India	-

STANDALONE AUDITED FINANCIAL RESULT FOR THE QUARTER ENDED SEPTEMBER 30, 2014

Sr. No	Particulars		Standalone
			Quarter Ended		Half Year Ended
			30.09.2014	30.06.2014	30.09.2014
			Audited	Unaudited	Audited
1	Income From Operations
	a. Net Sales/ Income from Operations (Net of Excise Duty)		11813.122	8307.076	20120.198
	b. Other Operating Income		94.533	87.009	181.542
	Total Income from Operations (Net)		11907.655	8394.085	20301.740
2	Expenditure
	a. Cost of material Consumed		7282.913	5030.588	12313.501
	b. Purchase of Stock-in trade		432.881	208.874	641.755
	c. Changes in inventory of finished Goods, work- in-progress and Stock-in-trade		33.956	(81.758)	(47.802)
	d. Employees Benefit Expenses		1137.496	1027.314	2164.810
	e. Depreciation and Amortisation Expenses		182.141	149.508	331.649
	f. Other expenses		1798.119	1631.809	3415.320
	Total Expenses		10867.506	7966.335	18819.232
3	Profit from Operations before Other Income, Interest and Exceptional Items		1040.150	427.750	1482.508
4	Other Income		231.969	190.997	408.358
5	Profit from ordinary activities before finance cost & exceptional items		1272.119	618.747	1890.866
6	Finance Costs		24.099	29.690	53.789
7	Profit from ordinary activities after finance costs & exceptional items		1248.020	589.057	1837.077
8	Exceptional items		--	--	--
9	Profit from ordinary activities before tax		1248.020	589.057	1837.077
10	Tax Expense
	- Income Tax
	- Deferred Tax		387.911	174.996	562.907
11	Net Profit from ordinary activity after tax		860.110	414.061	1274.170
12	Extraordinary Items		--	--	--
13	Net Profit After Tax		860.110	414.061	1274.170
14	Paid-up equity share capital (face value of Rs.10 per share)		238.313	238.313	238.313
15	Reserves excluding Revaluation Reserve as per balance sheet of previous accounting Year		--	--	--
16	Earning Per Share (of Rs.10 each) (not annualized)
	Basic EPS		7.22	3.47	10.69
	Diluted EPS		7.22	3.47	10.69
A		PARTICULARS OF SHAREHOLDING
17		Public Shareholding
		- No. of shares	45300995	45300995	45300995
		- Percentage of shareholding	38.02	38.02	38.02
18		Promoter & Promoter Group Shareholding
		a) Pledged/Encumbered
		- No. of shares	Nil	Nil	Nil
		- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group)	-	-	-
		- Percentage of shareholding (as a % of the total share capital of the company)	-	-	-
		b) Non-encumbered
		- No. of shares	73855305	73855305	73855305
		- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group)	100.00	100.00	100.00
		- Percentage of shareholding (as a % of the total share capital of the company)	61.98	61.98	61.98

	Particulars	Quarter ended 30.09.2014
B	Investor Complaints
	Pending at the beginning of the quarter	Nil
	Received during the quarter	91
	Disposed off during the quarter	91
	Remaining unresolved at the end of the quarter	Nil

SEGMENTWISE REVENUE, RESULTS AND CAPITAL EMPLOYED

Particulars	Quarter Ended		Half Year Ended
	30.09.2014	30.06.2014	30.09.2014
	Audited	Unaudited	Audited
a. Information about Primary Business Segments
1. Segment Revenue
Energy	9561.729	6446.140	16007.869
Environment	2646.484	2147.784	4794.268
Total	12208.213	8593.924	20802.137
Less : Inter Segment Revenue	300.559	199.839	500.397
Net Sales	11907.655	8394.085	20301.740
2. Segment Result
Energy	1162.211	421.493	1583.704
Environment	198.639	98.473	297.111
Total	1360.85	5199.66	1880815
Less : Interest	24.099	29.690	53.789
Less : Other Unallocable Expenditure net of unallocable income	88.730	(98.781)	(10.051)
Total	1248.020	589.057	1837.077
3. Capital Employed (Segment Assets-Segment Liabilities)
Energy	6833.075	5127.466	6833.075
Environment	3440.734	3627.992	3440.734
Unallocated	11237.308	11925.563	11237.308
Total	21511.117	20681.021	21511.117

STATEMENT OF ASSETS AND LIABILITIES

SOURCES OF FUNDS	As on 30.09.2014 (Audited)
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	238.313
(b) Reserves & Surplus	21272.805
	21511.118
(2) Minority Interest	0.000
(3) Non-Current Liabilities
(a) long-term borrowings	6.005
(b) Deferred tax liabilities (Net)	111.189
(c) Other long term liabilities	1037.135
(d) long-term provisions	0.000
	1154.329
(4) Current Liabilities
(a) Short term borrowings	827.491
(b) Trade payables	6772.269
(c) Other current liabilities	13905.837
(d) Short-term provisions	11396.182
	32901.779
TOTAL	45567.226
II. ASSETS
(1) Non-current assets
(a) Fixed Assets	6497.712
(b)Goodwill on Consolidation	0.000
(c) Non-current Investments	4626.801
(d) Deferred tax assets (net)	0.000
(e) Long-term Loan and Advances	215.172
(f) Other Non-current assets	2040.880
	13380.565
(2) Current assets
(a) Current investments	5188.749
(b) Inventories	2780.456
(c) Trade receivables	13661.142
(d) Cash and cash equivalents	1157.089
(e) Short-term loans and advances	2023.216
(f) Other current assets	7376.011
	32186.663
TOTAL	45567.226

NOTES :

1. The above audited financial results, reviewed by the Audit Committee, were approved at the meeting of the Board of Directors held on November 4, 2014.

2. The management has carried out the estimation of the useful life of assets based on internal and external technical evaluation. Based on such evaluation, depreciation amounting to Rs. 18.559 Millions (Net of Deferred Tax Rs. 9.556 Millions) has been adjusted against reserves in respect of assets which have already completed their useful lives before 1^st April 2014 and for other assets depreciation has been charged based on their remaining useful life. Had the company continued with the previously assessed useful lives, the charge for depreciation would have been lower by Rs. 24.500 Millions for the quarter and six months ending 30th September 2014.

4. Tax expense for the quarter and half year ended 30th September 2013 includes Rs. 290.000 Millions (Rs. 345.600 Millions for Thermax Group) being provision made for estimated liability likely to arise upon its claim for deduction of certain business expenses being held inadmissible consequent to a survey u/s 133A of the Income Tax Act, conducted by the Income Tax Department in October 2013. Consequential orders to the extent received have been contested by the Company in appeal.

6. Additional Information : Key unaudited financial parameters/figures (Consolidated) for the Thermax Group are as follows :

(Rs. in Million)

	6 Months ended	6 Months ended
	September 30, 2014	September 30, 2013
Total Income from operations	23796.171	22847.613
Profit Before Tax but after Exceptional Loss	846.072	1696.067
Profit After Tax and minority interest (Refer Note No. "3")	541.817	882.116

7. The figures for the second quarter of FY 2014-15 and of FY 2013-14 are the balancing figures between audited figures for the half year and the published figures for the first quarter.

8. Previous periods' figures, including those related to segments, have been regrouped wherever necessary to conform to current periods' grouping.

FIXED ASSETS:

· Land – Freehold

· Land – Leasehold

· Building

· Plant and Machinery

· Electrical Installation

· Office Equipment and Computer

· Furniture and Fixtures

· R and D Equipments

· Vehicles

NEWS:

THERMAX IMPROVES ORDER BOOKING

Pune, May 27, 2014

In a subdued economic environment where investments continue to be stalled, during FY 2013-14, Thermax Limited, a leader in energy and environment solutions, improved its order booking by 11% to Rs.53940.000 Millions (Rs.48590.000 Millions, previous year).

During the year, Thermax bagged a prestigious order worth Rs.17000.000 Millions from a leading petrochemical company for the design, manufacturing and commissioning of 9 CFBC (circulating fluidised bed combustion) high pressure boilers.

The order backlog on a consolidated basis, as on March 31, 2014, was at Rs.61210.000 Millions, a 25% improvement from last year’s Rs.48780.000 Millions.

For fiscal 2013-14, the company posted an operating revenue of Rs.43020.000 Millions, lower by 8 % compared to Rs.46910.000 Millions, the previous year. The company’s annual profit-after- tax dipped by 28% at Rs.2530.000 Millions from last year’s Rs.3500.000 Millions.

Export income including deemed exports during the financial year at Rs.11010.000 Millions (Rs.9840.000 Millions) accounted for 26 % of the revenue.

Thermax registered a Q4 net profit of Rs.106 (Rs.1150.000 Millions) on revenues of Rs.13830.000 Millions (Rs.14680.000 Millions).

The Group’s consolidated revenue stood at Rs.51000.000 Millions (Rs.54920.000 Millions). Profit after tax and minority interest on a consolidated basis for the year was Rs.2460.000 Millions (Rs.3200.000 Millions).

Consolidated earnings per Rs.2/- share was Rs.20.64, compared to Rs.26.87 in 2012-13.

The Board recommended a dividend of 300% for 2013-14.

PRESS RELEASES

'UNDERWEIGHT' RATING ON THERMAX LIMITED, TARGET PRICE RS 512: BARCLAYS

Earnings performance has remained weak for Thermax Limited, even in the third quarter of FY14, with PAT of Rs 666.000 Millions, -13% y-o-y. This was led by a marginal decline in sales and more than a 170 bps fall in Ebitda margins.

The fall in margin was attributed to issues with orders in the environment (water) segment. Subsidiaries reported an overall loss of Rs.36.000 Millions in the third quarter due to continued losses at its EPC subsidiary — Thermax Instrumentation, TBWE JV and the subsidiary in China.

According to management, the HC order on Mundra SEZ may hit Q4 revenue by Rs 500.000-1000.000 Millions. We maintain ‘underweight’ rating and target price of Rs 512.

Order inflow on the standalone business was stable at Rs 13600.000 Millions, +6% y-o-y, with growth across all regular conventional segments (air pollution, cooling, chemicals and water) except the heating segment. There was no domestic captive power and EPC order win in the quarter. Management highlighted there is no BTG order in the pipeline.

Overall, the subsidiaries reported a loss of Rs 36.000 Millions, led by losses at Thermax Instrumentation and the Chinese subsidiary. Danstoker was profitable, while TBWE JV continued to make losses, with a Rs 120.000 Millions loss in Q3.

Management also highlighted that a part of the large petro chemical order will be executed at the TBWE JV facility. Environmental segment profitability was impacted by losses in the water segment and a decline in profit in the air pollution segment. A few medium-to-large-size orders have been delayed, leading to higher costs that have been booked in the current quarter.

NEW GOVT MUST ENSURE MORE INVESTOR-FRIENDLY NORMS: THERMAX

MS Unnikrishnan feels the new government should bring policy-conducive environment to ease land acquisition. There’s a need to cut down on the number of clearances for projects and interest rates should be lowered to prop up the investment climate.

MD MS Unnikrishnan feels the new government needs to convey more investor-friendly norms. “The new government will have to make investors, both domestic and international, feel that India is a destination worth investing,” he said

He said the country’s fundamentals are right and we have got a fairly large market existence and good consumption. About 65-68 percent of the economy consists of domestic consumption, he said.

However, he thinks that investors need to be sure that there is policy support for their investment.

Thermax has been facing the brunt of the slowdown in the infrastructure space. The company’s order backlog has dipped by -13 percent CAGR from FY11-FY13. Thermax’s turnover has de-grown consistently for the past 8 quarters, including 4 quarters of double-digit de-growth. The company’s consolidated EBITDA margins have dipped from healthy levels of 12 percent in FY09 to 7 percent in 9MFY14E.

Unnikrishnan said the capital goods sector has seen 27 percent decline in order inflows. He feels the new government should bring policy-conducive environment to ease land acquisition. There’s a need to cut down on the number of clearances for projects and interest rates should be lowered to prop up the investment climate, he added.

Vinayak Chatterjee, Chairman of Feedback Infra said that despite the Cabinet Committee on Investments (CCI) having made announcement that they have clearing projects worth lakh Millionss, the corporate feedback indicates that projects have not yet started rolling, and are stuck at multiple levels.

He feels the new government can do a lot. “There are clutch of decision, action, imperative that are waiting to happen. So we are waiting for strong leadership to make that work such as setting up a ministry for infrastructure,” he said. Referring to the current way of functioning, he said:

“In Delhi today, there are 16 ministries that are directly involved with infrastructure development in the country. If you add on top of that Planning Commission, PMO and Cabinet Secretary including the CCI, you have got 19 different silos that are attacking the problem and then you multiply that by 29 state governments, who themselves will have another 16 departments under them. So, you have got an incredible matrix of a tangled web of permissions, clearances, logjams and that has been the single-most important item for discussion in the last two years of the UPA II.”

He feels the new government should create a dedicated ministry for infrastructure whose job would be to untangle and push the agenda.

Echoing his views, Unnikrishnan said India has six ministries for industry against one-ministry norm seen globally.

Year 2013 has been, in particular, a bad year for the infra sector. Economic slowdown, high current account and fiscal deficits, have severely constrained government’s ability to undertake fresh investment in the sector. Sectors like roads and power have suffered the most.

The earlier envisaged target of $1 trillion investment in infrastructure sector during 12th Five-Year Plan (2012-17) now seems difficult to achieve.

The road sector has been plagued by problems like delay in project clearances. Progress on national highway stretches awarded under BOT has almost got stalled.

For power sector, generation capacity continues to grow, but the availability of coal is a serious challenge.

THERMAX BAGS RS 2800.000 MILLIONS ORDER FOR POWER PLANT IN NE

Pune based Industrial energy solutions provider Thermax has won a Rs 2800.000 Millions EPC order for a combined cycle extension power project from a leading Government of India Enterprise in the North East.

The 2 x 24.5 MW project is part of the company’s process of converting its existing gas turbine based power plant into a combined cycle power plant by installing the bottoming cycle (utilising the waste heat from the exhaust of the gas turbine to generate additional power).

Scope of work for Thermax includes design, engineering, procurement, construction, installation and commissioning of the project on a turnkey basis.

The supply of equipment includes four heat recovery steam generators (HRSG’s) and two steam turbine generators (STG) complete with all auxiliaries and accessories, and is scheduled to be completed within 25 months.

Commenting on this, MS Unnikrishnan, MD and CEO, Thermax Limited said, “This order reinforces Thermax’s successful track record in EPC power projects and our leadership in building and commissioning captive power plants for industry.”

Till date, Thermax has contracted over 72 power projects on turnkey basis based on various fuels including domestic and imported coal, washery rejects, petcoke, waste heat from various processes, renewable energy including biomass and solar, waste gases, naptha and natural gas.

THERMAX BAGS RS. 17000.000 MILLIONS ORDER FOR SUPPLY OF CFBC BOILERS

 July 05, 2013 

Energy and environment solutions provider Thermax Limited today said it has received an order worth Rs.17000.000 Millions from a leading petrochemical company for the design, manufacture and commissioning of 9 circulating fluidized bed combustion (CFBC) high pressure boilers.

All the 9 CFBC boilers will be of 500 TPH (tonnes per hour) each for two plants of the petrochemical company, Thermax said in a statement but did not name its client.

"The order was won against stiff global competition. The approximate order value is Rs. 17000.000 Millions, the single largest one from a client for deployment of CFBC boilers," it added.

Company's managing director and CEO M. S. Unnikrishnan said, "This order reflects the customer's confidence in Thermax's extensive experience with CFBC technology across India on a variety of low grade solid fuels, as also trust in our manufacturing and project execution capabilities."

The boilers, to be commissioned at client sites within a time frame of 25-29 months, will generate steam for process and power generation and they will use petcoke and coal as fuel, Thermax said.

Petcoke, essentially a refinery waste, has high heat value and low ash content, making it a cost-effective fuel. Using fourth generation CFBC technology, Thermax boilers will burn these multiple fuels to achieve high levels of temperature control and almost negligible down time for maintenance, it added.

Thermax offers integrated solutions in the areas of heating, cooling, power, water and waste management, air pollution control and chemicals. It has manufacturing facilities in India, China and Europe.

Shares of the company were trading at Rs.610 apiece on the BSE at 1400 hours, up 3.05 per cent from its previous close.

THERMAX POSTS Q2 NET OF RS. 300.000 MILLIONS

Pune: November 6, 2013

For the second quarter of fiscal 2013-14, Thermax Limited announced an operating revenue of Rs.10430.000 Millions, down 12.5 % compared to Rs.11920.000 Millions for the same period, the previous year. Net profit was down 66.9 % at Rs.300.000 Millions from Rs.910.000 Millions posted in the second quarter last year.

The company declared its net profits for the current quarter and for the half-year period after making a one-time provision of Rs.290.000 Millions (Rs.350.000 Millions for Thermax Group) on account of estimated tax liability expected due to likely inadmissibility of certain business expenses incurred in earlier years.

The company’s total operating revenue for the year’s first half (April- September) stood at Rs.19060.000 Millions, lower by 12.4% compared to Rs.21760.000 Millions in 2012-13. Net profit of Rs.800.000 Millions was 49.2% lower than last year’s Rs.1580.000 Millions.

On a consolidated basis, total operating revenue of the Group for the half year was Rs.22850.000 Millions compared to Rs.25650.000 Millions last year. Net profit for the period was Rs.880.000 Millions (Rs.1400.000 Millions, last year).

As on September 30, 2013, Thermax Limited has an order backlog of Rs.53080.000 Millions against Rs.44120.000 Millions in September 2012. Compared to last year’s Rs.49840.000 Millions, the Group order backlog stands at Rs.61280.000 Millions. However, generally the market for capital goods continues to be sluggish.

THERMAX BAGS RS. 17000.000 MILLIONS ORDER FOR SUPPLY OF CFBC BOILERS

Energy and environment major, Thermax Limited has received a prestigious order from a leading petrochemical company for the design, manufacture and commissioning of 9 CFBC (circulating fluidized bed combustion) high pressure boilers of 500 TPH each for two of its plants.

The order was won against stiff global competition. The approximate order value is Rs.17000.000 Millions, the single largest one from a client for deployment of CFBC boilers.

Says M.S. Unnikrishnan, MD and CEO of Thermax, “This order reflects the customer’s confidence in Thermax’s extensive experience with CFBC technology across India on a variety of low grade solid fuels, as also trust in our manufacturing and project execution capabilities.”

The boilers, to be commissioned at client sites within a time frame of 25-29 months, will generate steam for process and power generation. They will use petcoke and coal as fuel. Petcoke, essentially a refinery waste, has high heat value and low ash content, making it a cost-effective fuel. Using fourth generation CFBC technology Thermax boilers will burn these multiple fuels to achieve high levels of temperature control and almost negligible down time for maintenance.

THERMAX POSTS HIGHER REVENUE AND PROFIT IN Q2

Pune: November 4, 2014

During the second quarter of fiscal 2014-15, Thermax Limited announced an operating revenue of Rs. 1191 crore, up 14 % compared to Rs. 1043 crore for the same period, the previous year. Net profit of Rs. 86 crore was up 185 % from Rs. 30 crore, last year’s corresponding quarter.

Total operating revenue for the year’s first half (April- September) stood at Rs.2030 crore, 7% higher compared to Rs. 1906 crore in 2013-14. Net profit of Rs.127 crore was up by 58% over last year’s

Rs.80crore.

During the quarter, the company had an order inflow of Rs. 1089 crore, a growth of 42%. Order booking has been helped by improvement in the demand for its standard products in the domestic market and also project orders from the international market.

On a consolidated basis, total operating revenue of the Group for the half year was Rs. 2380 crore compared to Rs. 2285 crore last year. Net profit for the period was Rs. 54 crore (Rs. 88 crore, last year). The profit has been arrived at after providing for an exceptional loss of Rs.36 crore during the quarter ending September 2014 against investment in Omnical Kessel, Germany. Omnical was a subsidiary of Danstoker, a step down subsidiary of Thermax Ltd. It was incurring losses for the last ten quarters and turnaround efforts were proving ineffective due to declining demand in the German market. Omnical has been placed under administration and its exit will prevent any further drag on Danstoker.

As on September 30, 2014, Thermax Limited has an order backlog of Rs. 5016 crore against Rs. 5308 crore in September 2013. Compared to last year’s Rs. 6128 crore, the Group order backlog stands at Rs.

6067 crore.

The quarter saw the joint venture company, Thermax Babcock & Wilcox Energy Solutions Private Limited (TBWES) receiving a Rs. 339 crore export order from B&W PGG for detailed engineering, manufacturing and supply of selective items for two boilers for an international project. The boilers will be manufactured at the JV’s manufacturing facility at Shirwal, Maharashtra. About Thermax Limited: Thermax Limited, a leading energy and environment solutions provider is one of the few companies in the world that offers integrated innovative solutions in the areas of heating, cooling, power, water and waste management, air pollution control and chemicals. Thermax has manufacturing facilities in India, China and Europe. The sustainable solutions Thermax develops for client companies are environment-friendly and enable efficient deployment of energy and water resources.

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 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. 61.13
UK Pound	1	Rs. 97.05
Euro	1	Rs. 77.36

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	KAR
Report Prepared by :	KLS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		62

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

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