MIRA INFORM REPORT

Report Date :

01.09.2014

IDENTIFICATION DETAILS

Name :	MURUGAPPA MORGAN THERMAL CERAMICS LIMITED
Registered Office :	PBNO 1570, Dare House Complex, 5^th Floor Extn, 2, NSC Bose Road, Chennai – 600001, Tamilnadu
Country :	India
Financials (as on) :	31.12.2013
Date of Incorporation :	29.03.1982
Com. Reg. No.:	18-009622
Capital Investment / Paid-up Capital :	Rs.29.200 Millions
CIN No.: [Company Identification No.]	U26919TN1982PLC009622
TAN No.: [Tax Deduction & Collection Account No.]	CHEM00400B
PAN No.: [Permanent Account No.]	AAACM4385M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject manufactures a complete range of ceramic fibre products and serves many industries including iron and steel, Aluminium, metal processing, furnace building, power, ceramics and chemical processing.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

A (63)

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 :	Clear
Comments :	Subject is an established company having good track record. Financial position of the company is sound. Fundamentals of the company is healthy. Trade relations are reported as fair. Business is active. Payments terms are reported to be regular and as per commitment. 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 – 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

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

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 DENIED

Management Non Co-operative (91-44-25306883)

LOCATIONS

Registered Office / (Sales) :	PBNO 1570, Dare House Complex, 5^th Floor Extn, 2, NSC Bose Road, Chennai – 600001, Tamilnadu, India
Tel. No.:	91-44-25306883 / 25306877 / 25306875 / 25306789
Fax No.:	91-44-25345985
E-Mail :	Rajkumar.rajasekharan@morganplc.com
Gujarat (Sales / Manufacture) :	Plots No.681, Village Moti Bhoyan, Kalol-Sanand Road, District Gandhinagar – 382721, Gujarat, India
Ranipet (Manufacture) :	Plots No. 26 and 27, SIPCOT Industrial Complex, Ranipet – 632403,Vellore District, Tamilnadu, India
Tel. No.:	91-4172-244313 / 247097
Fax No.:	91-4172-246140

DIRECTORS

AS ON 21.03.2014

Name :

Mr. Murugappan Murugappan Muthiah

Designation :

Director

Address :

New No.14 (Old No.12), Boat Club Road, Chennai – 600028, Tamilnadu, India

Date of Birth/Age :

12.11.1955

Date of Appointment :

24.06.1998

DIN No.:

00170478

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U65993TN1942PTC003659	AMBADI INVESTMENTS PRIVATE LIMITED	Director	03/03/1979	03/03/1979	-	Active	NO
2	U93090TN1982NPL009388	A M M MEDICAL FOUNDATION	Director	16/11/1983	16/11/1983	-	Active	NO
3	U73100TN1983NPL010490	M.M.MUTHIAH RESEARCH FOUNDATION	Director	29/11/1983	29/11/1983	-	Active	NO
4	U30006TN1990PLC019611	MEL SYSTEMS AND SERVICES LIMITED	Director	07/09/1990	07/09/1990	-	Active	NO
5	L65990MH1945PLC004558	MAHINDRA AND MAHINDRA LIMITED	Director	28/08/1992	28/08/1992	-	Active	NO
6	U29259GJ1979PLC003467	STERLING ABRASIVE LIMITED	Director	28/10/1995	28/10/1995	22/04/2009	Active	NO
7	L29224TN1954PLC000318	CARBORUNDUM UNIVERSAL LIMITED	Director	17/10/1996	17/10/1996	-	Active	NO
8	L72200TG1991PLC013134	Cyient Limited	Director	17/07/2014	11/08/1997	-	Active	NO
9	U26919TN1982PLC009622	MURUGAPPA MORGAN THERMAL CERAMICS LTD	Director	24/06/1998	24/06/1998	-	Active	NO
10	U73100TN2000PTC045328	IDEA LAB (INDIA) PRIVATE LIMITED	Director	05/07/2000	05/07/2000	-	Active	NO
11	U74999TN1997PLC039545	NET ACCESS INDIA LIMITED	Director	29/07/2000	29/07/2000	09/07/2014	Active	NO
12	L85110KA1980PLC003913	WENDT INDIA LIMITED	Director	29/01/2001	29/01/2001	-	Active	NO
13	L35921TN1949PLC002905	TUBE INVESTMENTS OF INDIA LIMITED	Director	27/03/2002	27/03/2002	-	Active	NO
14	L24120AP1961PLC000892	COROMANDEL INTERNATIONAL LIMITED	Director	15/07/2004	15/07/2004	23/01/2007	Active	NO
15	U65993MH1996PLC211198	L&T Mutual Fund Trustee Limited	Additional director	18/10/2006	18/10/2006	14/08/2008	Active	NO
16	U28991TN2001FTC047397	BorgWarner Morse TEC India Private Limited	Director	26/01/2007	26/01/2007	30/09/2008	Active	NO
17	U93090TN1982NPL009389	MURUGAPPA EDUCATIONAL AND MEDICAL FOUNDATION	Director	30/09/2010	30/08/2010	-	Active	NO
18	U74140TN1994PLC029257	CHOLAMANDALAM MS RISK SERVICES LIMITED	Director	27/07/2012	27/01/2012	-	Active	NO
19	U65993TN1977PLC070246	MURUGAPPA HOLDINGS LIMITED	Director	28/07/2012	09/02/2012	-	Active	NO
20	U65990TN2008PTC066257	NEW AMBADI ESTATES PRIVATE LIMITED	Director	27/07/2012	26/03/2012	-	Active	NO
21	U29142TN1990PLC020023	PARRY ENTERPRISES INDIA LIMITED	Director	26/07/2013	20/07/2012	-	Active	NO
22	L29130TZ1972PLC000649	SHANTHI GEARS LIMITED	Director	24/07/2013	03/09/2012	-	Active	NO
23	U73100TN2006NPL059651	IIT MADRAS RESEARCH PARK	Director	31/08/2013	31/08/2013	-	Active	NO

Name :

Mr. Ian William Robb

Designation :

Director

Address :

60, Trevose Cresent, # 03-206, The Trevose, Singapore

Date of Birth/Age :

17.08.1959

Date of Appointment :

21.09.1998

DIN No.:

00281910

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U26919TN1982PLC009622	MURUGAPPA MORGAN THERMAL CERAMICS LTD	Director	21/09/1998	21/09/1998	-	Active	NO
2	U74899DL1997PLC091417	CIRIA INDIA LIMITED	Director	15/06/2012	20/04/2012	-	Active	NO
3	U26919DL2013FTC250715	Morgan Advanced Materials India Private Limited	Director	12/04/2013	12/04/2013	-	Active	NO

Name :

Mr. Srinivasan Rangarajan

Designation :

Director

Address :

126, Nandidurg Road, Bangalore – 560046, Karnataka, India

Date of Birth/Age :

10.09.1941

Date of Appointment :

24.06.1998

DIN No.:

00043658

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29221KA1994PTC015104	NTTF INDUSTRIES Private LIMITED	Director	06/01/1994	06/01/1994	-	Active	NO
2	U72400KA1994PTC016526	RAS TRANSFORMATION TECHNOLOGIES PRIVATE LIMITED	Director	19/11/1994	19/11/1994	-	Strike off	NO
3	L35999TN1962PLC004943	SUNDRAM FASTENERS LIMITED	Director	06/03/1995	06/03/1995	-	Active	NO
4	L29150KA1976PLC003017	YUKEN INDIA LIMITED	Director	29/06/1995	29/06/1995	-	Active	NO
5	U26919TN1982PLC009622	MURUGAPPA MORGAN THERMAL CERAMICS LTD	Director	24/06/1998	24/06/1998	-	Active	NO
6	U85110KA1999NPL025461	NETTUR TECHNICAL TRAINING FOUNDATION	Director	13/07/1999	13/07/1999	-	Active	NO
7	U27109KA1999PTC025888	TAEGUTEC INDIA PRIVATE LIMITED	Director	01/03/2000	01/03/2000	-	Active	NO
8	L85110TZ1955PLC015049	TTK PRESTIGE LIMITED	Director	09/10/2000	09/10/2000	-	Active	NO
9	U29199KA1986PLC007816	ACE DESIGNERS LIMITED	Director	09/02/2002	09/02/2002	-	Active	NO
10	U66030TN2001PLC047977	CHOLAMANDALAM MS GENERAL INSURANCE COMPANY LIMITED	Director	22/03/2002	22/03/2002	01/11/2012	Active	NO
11	L35921TN1949PLC002905	TUBE INVESTMENTS OF INDIA LIMITED	Director	09/06/2004	09/06/2004	06/08/2012	Active	NO
12	L29112PN1978PLC088972	KIRLOSKAR INDUSTRIES LIMITED	Director	20/01/2005	20/01/2005	30/03/2010	Active	NO
13	U02710KA2004PTC034823	DAKSHIN FOUNDRY PRIVATE LIMITED	Director	29/03/2005	29/03/2005	04/07/2012	Active	NO
14	L24231TN1958PLC003647	TTK HEALTHCARE LIMITED	Director	29/12/2005	29/12/2005	-	Active	NO
15	L72200KA1999PLC025564	MindTree Limited	Director	24/10/2006	24/10/2006	19/07/2013	Active	NO
16	U74140KA2007PTC042217	EDUTECH NTTF INDIA PRIVATE LIMITED	Director	28/04/2007	28/04/2007	-	Active	NO
17	U29259GJ1979PLC003467	STERLING ABRASIVE LIMITED	Director	04/06/2009	22/04/2009	-	Active	NO
18	U74300KA2009PTC050726	BANGALORE INTERNATIONAL EXHIBITION SERVICES PRIVATE LIMITED	Director	24/08/2009	24/08/2009	-	Active	NO
19	L29120PN2009PLC133351	KIRLOSKAR OIL ENGINES LIMITED	Director	09/07/2010	30/03/2010	-	Active	NO
20	U29290MH1973GAP016420	INDIAN MACHINE TOOL MANUFACTURERS ASSOCIATION	Director	29/08/2012	29/08/2012	06/09/2013	Active	NO
21	U74900KA2012NPL067059	IMTMA Machine Tool Industry Park	Director	06/12/2012	06/12/2012	-	Active	NO

Name :

Mr. Andrew Wynn

Designation :

Director

Address :

Unit 1507, Shangri-la Residences, 66, Renmin Road, Dalian, 116001, China

Date of Birth/Age :

16.07.1965

Date of Appointment :

28.01.2014

DIN No.:

06749545

Name :

Mr. Ralph Ian Gomarsall

Designation :

Director

Address :

6, Brocklands, Yateley, UK GU466YU

Date of Birth/Age :

03.05.2011

Date of Appointment :

12.02.2011

DIN No.:

03441360

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U26919TN1982PLC009622	MURUGAPPA MORGAN THERMAL CERAMICS LTD	Director	12/02/2011	12/02/2011	-	Active	NO
2	U74899DL1997PLC091417	CIRIA INDIA LIMITED	Director	15/06/2012	20/04/2012	-	Active	NO
3	U26919DL2013FTC250715	Morgan Advanced Materials India Private Limited	Director	12/04/2013	12/04/2013	-	Active	NO
4	L23101AS1963PLC001206	ASSAM CARBON PRODUCTS LTD	Additional director	19/09/2013	19/09/2013	-	Active	NO

MAJOR SHAREHOLDERS

AS ON 21.03.2014

Names of Shareholders	No. of Shares
Carborundum Universal Limited, India	1430793
Morgan Advanced Materials PLC, England	1489200
Presmet Private Limited, India	2
Kartik Investments Trust Limited, India	1
Ambadi Investments Private Limited, India	1
New Ambadi Estates Private Limited, India	1
EID Parry (India) Limited, India	2
Total	2920000

Equity Share Break up (Percentage of Total Equity)

AS ON 21.03.2014

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	51.00
Bodies corporate	49.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject manufactures a complete range of ceramic fibre products and serves many industries including iron and steel, Aluminium, metal processing, furnace building, power, ceramics and chemical processing.

GENERAL INFORMATION

No. of Employees :	Information declined by the management
Bankers :	· The Hongkong and Shanghai Banking Corporation Limited, No 30, Rajaji Salai, Chennai – 600001, Tamilnadu, India · Standard Chartered Bank, 19, Rajaji Salai, Chennai – 600001, Tamilnadu, India

Banking Relations :	--
Auditors :
Name :	B S R and Co LLP Chartered Accountants
Address :	No 10, Mahatma Gandhi Road, Numbambakkam, Chennai – 600034, Tamilnadu, India
PAN No.:	AAAFB9852F
Holding company :	Morgan Advanced Materials Plc, United Kingdom
Associates :	· Carborundum Universal Limited, India · Parry Enterprises India Limited, India · E.I.D Parry (India) Limited, India · Cholamandalam Investment And Finance Company Limited, India · Cholamandalam MS General Insurance Company Limited, India · Diamond Crucible Company Limited, India · Wendt India Limited, India · Assam Carbon Products Limited, India · Ciria India Limited, India · Thermal Ceramics Asia Pty Limited, Singapore · Thermal Ceramics Middle East, UAE · Thermal Ceramics UK Limited, Bromborough, United Kingdom · Thermal Ceramics De France, S.A., France · Thermal Ceramics Italiana, S.R.L., United Kingdom · Thermal Ceramics, USA, United States · Thermal Ceramics Australia Pty Limited, Australia · Thermal Ceramics, Canada · Thermal Ceramics Morganite Brazil Limited, Brazil · Morgan Korea Company Limited, Korea, Republic of · Morganite Crucible (India) Limited, India · Shin-Nippon Thermal Ceramics Corporation, Japan · Vacuumschmelze, Gmbh , Germany · Thermal Ceramics Espana, Spain · Thermal Ceramics Deutschland Gmbh & Co., Germany · Yixing Morgan Thermal Ceramics Co Limited, China · Morgan Kailong (Jingmen) Thermal Ceramics Co Limited, China · Morgan Thermal Ceramics Shanghai Limited., China · Morgan Ceramics Middle East FZE, United Arab Emirates · Morgan Ceramics Asia Pte. Limited, Singapore · Beijing Morgan Ceramics Co Limited, China

CAPITAL STRUCTURE

AS ON 21.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2920000	Equity Shares	Rs.10/- each	Rs.29.200 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2013	31.12.2012	31.12.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	29.200	29.200	29.200
(b) Reserves & Surplus	889.950	764.373	652.130
(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)	919.150	793.573	681.330
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	3.970	11.170
(b) Deferred tax liabilities (Net)	18.826	20.441	21.641
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	18.826	24.411	32.811
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	9.967
(b) Trade payables	165.346	121.937	113.112
(c) Other current liabilities	77.544	91.612	81.731
(d) Short-term provisions	96.908	92.427	75.011
Total Current Liabilities (4)	339.798	305.976	279.821
TOTAL	1277.774	1123.960	993.962
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	450.060	472.011	413.801
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	25.410	4.672	12.214
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	35.138	19.333	52.294
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	510.608	496.016	478.309
(2) Current assets
(a) Current investments	353.730	255.010	181.738
(b) Inventories	107.461	122.309	130.777
(c) Trade receivables	247.913	199.495	167.890
(d) Cash and cash equivalents	18.632	26.024	8.869
(e) Short-term loans and advances	39.430	25.106	26.379
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	767.166	627.944	515.653
TOTAL	1277.774	1123.960	993.962

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.12.2013	31.12.2012	31.12.2011
	SALES
		Income		1235.573	1176.301	1090.739
		Other Income		18.341	16.611	13.576
		TOTAL (A)		1253.914	1192.912	1104.315
Less	EXPENSES
		Cost of Materials Consumed		190.024	239.450	203.586
		Purchase of Stock-in-trade		54.382	29.530	54.758
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade		17.818	(5.207)	(21.988)
		Employee Benefits Expenses		136.560	123.148	114.618
		Other Expenses		509.211	499.362	451.848
		TOTAL (B)		907.995	886.283	802.822
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			345.919	306.629	301.493
Less	FINANCIAL EXPENSES (D)			0.070	0.238	0.263
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			345.849	306.391	301.230
Less	DEPRECIATION/ AMORTISATION (F)			57.861	57.758	44.188
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			287.988	248.633	257.042
Less	TAX (H)			94.086	77.000	83.573
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			193.902	171.633	173.469
	IMPORTS
			Raw Materials	50.140	41.187	61.733
			Components & Spare Parts	24.480	20.190	13.003
			Capital Goods	19.102	52.692	4.033
	TOTAL IMPORTS			93.722	114.069	78.769
	Earnings Per Share (Rs.)			66.40	58.78	59.41

KEY RATIOS

PARTICULARS		31.12.2013	31.12.2012	31.12.2011
PAT / Total Income	(%)	15.46	14.39	15.71
Net Profit Margin (PBT/Sales)	(%)	23.31	21.14	23.57
Return on Total Assets (PBT/Total Assets}	(%)	23.00	22.21	26.18
Return on Investment (ROI) (PBT/Networth)		0.31	0.31	0.38
Debt Equity Ratio (Total Debt /Networth)		0.00	0.01	0.03
Current Ratio (Current Asset/Current Liability)		2.26	2.05	1.84

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.12.2011	31.12.2012	31.12.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	29.200	29.200	29.200
Reserves & Surplus	652.130	764.373	889.950
Net worth	681.330	793.573	919.150
long-term borrowings	11.170	3.970	0.000
Short term borrowings	9.967	0.000	0.000
Total borrowings	21.137	3.970	0.000
Debt/Equity ratio	0.031	0.005	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.12.2011	31.12.2012	31.12.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	1,090.739	1,176.301	1,235.573
		7.844	5.039

NET PROFIT MARGIN

Net Profit Margin	31.12.2011	31.12.2012	31.12.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	1,090.739	1,176.301	1,235.573
Profit	173.469	171.633	193.902
	15.90%	14.59%	15.69%

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	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
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	----------
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	No

OPERATIONS:

Subject posted a Net Sales including income from installation of Rs 1231 million, a growth of 5% over 2012. While Iron & Steel, Distribution, Chemical Processing, Ceramics and Power continue to be the predominant end user segments, subject has made reasonable progress in emerging market segments such as Passive Fire Protection for construction and marine applications. You company enhanced the addressable market size and identified new and emerging markets.

While the market environment has not been good, your company was able to grow its bottom-line (PBT) by 15.8% through operational efficiencies, better sourcing and use of cost-efficient gas. Being a net exporter, significant gains also arose from the rupee depreciation.

The price of Zircon a crucial input for Cerachem fibre manufacture stabilized during the year. Power availability continued to be an issue at Ranipet. Use and sourcing of alternate as well as cost effective raw material, continued focus on improving efficiencies in usage of material and power helped to counter price pressures from the market. An incremental facility was created and commenced during October 2013 at Ranipet at a cost of INR 18 million to produce Superwool HT.

INDUSTRY OUTLOOK FOR 2014:

Year 2014 will be a challenge given the low GDP growth projected as India continues to grapple with high inflation and a weak rupee. The focus in 2014 will be to stretch its distinctive competencies; technical and application development skills. Your Company will continue to work towards its vision of delivering superior solutions in High Temperature Insulation and Passive Fire Protection through operational excellence and increased focus in creating high performance teams. Environment Health and safety will also be accorded a strong priority.

BACKGROUND:

Murugappa Morgan Thermal Ceramics Limited (“MMTCL” or “the Company”) formed in 1982 is a subsidiary of Morgan Advanced Materials Plc (Formerly Morgan Crucible Company Plc, UK). MMTCL is in the business of engineered solutions for high temperature insulation, providing significant energy savings and productivity improvement. The Company manufactures a complete range of ceramic fibre products and serves many industries including iron and steel, Aluminium, metal processing, furnace building, power, ceramics and chemical processing.

UNSECURED LOANS:

Particulars	31.12.2013 Rs. In Millions	31.12.2012 Rs. In Millions
Long Term Borrowings
Deferred sale tax loan	0.000	3.970
Total	0.000	3.970

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10448666	10/09/2013	170,000,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	NO 30, RAJAJI SALAI, CHENNAI, TAMIL NADU - 600001, INDIA	B84830934
2	90290125	03/03/2012 *	170,000,000.00	STANDARD CHARTERED BANK	19,, RAJAJI SALAI,, CHENNAI, TAMIL NADU - 600001, INDIA	B35509595
3	90297679	26/12/1995 *	50,000,000.00	EXPORT - IMPORT BANK OF INDIA	CENTRE ONE; WORLD TRADE CENTRE, CUFFE PARADE, BOM BAY, MAHARASHTRA - 400005, INDIA	-
4	90296795	01/03/1989	4,000,000.00	GRINDLAYS BANK PLC	19, RAJAJI SALAI, MADRAS, TAMIL NADU - 600001, INDIA	-
5	90297437	19/02/1987	10,000,000.00	STATE INDUSTRIES PREOMOTION CORPORATION OF TAMIL N ADU LTD.	NO. 51 & 52 GREMS ROAD, THOUSAND LIGHT, MADRAS, T AMIL NADU - 600006, INDIA	-
6	90295941	04/04/1986	1,500,000.00	THE INDUSTRIAL CREDIT & INVESTMENT CORPORATION OF INDAI LTD.	163, BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA	-
7	90297408	04/04/1986 *	1,500,000.00	THE INDUSTRIAL CREDIT & INVESTMENT CORPORATION OF INDIA LTD.	163, BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA	-
8	90295923	29/11/1985 *	1,600,000.00	THE INDUSTRIAL CREDIT & INVESTMENT CORPORATION OF INDAI LTD.	163, BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA	-
9	90297383	23/01/1995 *	1,000,000.00	ANZ GRINDLEYS BANK P.L.C	19, RAJAJI ROAD, MADRAS, TAMIL NADU - 600001, INDIA	-
10	90295495	06/08/1984	4,700,000.00	LIFE INSURANCE CORPORATION OF INDIA	YOCAKSHEMA, JEEVAN BIMA MARG, BOMBAY, MAHARASHTRA - 400021, INDIA	-
11	90297382	07/11/1984 *	4,700,000.00	LIFE INSURENCE CORPORATION OF INDIA	YOGAKSHUMA, JEEVAN BIMA MARG, BOMBAY, MAHARASHTRA - 400021, INDIA	-
12	90297379	07/11/1984 *	4,400,000.00	GENERAL INSURANCE CORPORTION OF INDIA	INDUSTRIAL ASSURANCE BUILDING, CHURCHAGATE, BOMBAY, MAHARASHTRA - 400020, INDIA	-
13	90297377	27/06/1984	2,800,000.00	LIFE INSURANCE CORPORATION OF INDIA	YOGAKSHEMA, JEEVAN BIMA MARG, BOMBAY, MAHARASHTRA - 400021, INDIA	-
14	90297372	09/03/1984	3,520,000.00	GENERAL INSURANCE CORPORATION OF INDIA	INDUSTRIAL ASSURANCE BUILDING, CHURCHGATE, BOMBAY, MAHARASHTRA - 400020, INDIA	-
15	90297368	06/05/1988 *	5,700,000.00	THE INDUSTRIAL CREDIT & INVESTMENT CORPORATION OF INDIA LTD.	163, BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA	-

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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 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.60.47
UK Pound	1	Rs.100.35
Euro	1	Rs.79.86

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	DIV
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--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	NO
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		63

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.