MIRA INFORM REPORT

Report No. :	313917
Report Date :	26.03.2015

IDENTIFICATION DETAILS

Name :	TATA ADVANCED MATERIALS LIMITED (w.e.f. 18.11.1992)
Formerly Known As :	MATRIX MATERIALS LIMITED
Registered Office :	No.10, Jigani Industrial Area, Jigani, Bangalore – 562106, Karnataka
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	10.11.1989
Com. Reg. No.:	08-013224
Capital Investment / Paid-up Capital :	Rs.2417.633 Million
CIN No.: [Company Identification No.]	U85110KA1989PLC013224
TIN No.:	Not Available
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	BLRT02320D
PAN No.: [Permanent Account No.]	AAACT5435F
Legal Form :	Private Limited Liability Company
Line of Business :	The company is primarily engaged in the business of manufacture of composite products for applications in aerospace, defense and industrial segments.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 6910000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a subsidiary of “TATA INDUSTRIES LIMITED”. It is an established company having satisfactory track record. The company has incurred huge accumulated losses over a year. However, the rating reflects strong financial and managerial support that company receives from its parent company. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. In view of strong holding company support, the company can be considered for business dealings at usual trade terms and condition.

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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long Term Scale – Term Loan = A-
Rating Explanation	Adequate degree of safety and low credit risk.
Date	September 2014

Rating Agency Name	ICRA
Rating	Short Term Scale – Short Term Borrowings = A2+
Rating Explanation	Strong degree of safety and low credit risk.
Date	September 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.

LOCATIONS

Registered Office :	No.10, Jigani Industrial Area, Jigani, Bangalore – 562106, Karnataka, India
Tel. No.:	91-80-66955500 / 66955557 / 27825570
Fax No.:	91-80-27825570 / 27825671 / 66955555
E-Mail :	shashidhar@tamilindia.com sales.dicd@tamilindia.com sales.aero@tamilindia.com procurement@tamlindia.com
Website :	www.tamlindia.com

DIRECTORS

As on 04.09.2014

Name :

Mr. Kanwar Rameshwar Singh Jamwal

Designation :

Director

Address :

73-A, Maker Towers, Cuffe Parade, Mumbai – 400005, Maharashtra, India

Date of Birth/Age :

11.10.1965

Date of Appointment :

20.09.2010

DIN No.:

03129908

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	U44003MH1945PLC004403	TATA INDUSTRIES LIMITED	Whole-time director	17/09/2010	01/07/2010	-	Active	NO
2	U74999MH2007PLC173035	Tata Industrial Services Limited	Director	12/08/2011	13/09/2010	-	Active	NO
3	U85110KA1989PLC013224	TATA ADVANCED MATERIALS LIMITED	Director	18/08/2011	20/09/2010	-	Active	NO
4	U72900MH2000PLC126195	Drive India Enterprise Solutions Limited	Director	08/08/2011	30/09/2010	-	Active	NO

Name :

Dr. Chandrathilgouri Krishnadas Nair

Designation :

Director

Address :

Chandrathil Mane 2388/1, 16th A Main Hall 2nd Stage, Indira Nagar, Bangalore – 560008, Karnataka, India

Date of Birth/Age :

17.08.1941

Date of Appointment :

08.06.2003

DIN No.:

00059686

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	L74999TZ1984PLC001456	TITAN COMPANY LIMITED	Director	01/08/2014	02/05/2002	-	Active	NO
2	U85110KA1992PLC012851	KARNATAKA HYBRID MICRO DEVICES LIMITED.	Director	14/12/2002	02/11/2002	28/02/2014	Active	NO
3	U85110KA1989PLC013224	TATA ADVANCED MATERIALS LIMITED	Director	08/06/2003	08/06/2003	-	Active	NO
4	U64202KA2001PTC029836	CADES DIGITECH PRIVATE LIMITED	Director	01/01/2005	01/01/2005	14/12/2009	Amalgamated	NO
5	L62200DL1998PLC093225	GLOBAL VECTRA HELICORP LIMITED	Director	07/06/2006	07/06/2006	-	Active	NO
6	L29190KA1985PLC007363	SIKA INTERPLANT SYSTEMS LIMITED	Director	18/01/2007	18/01/2007	-	Active	NO
7	U24239KA2007PTC042072	SUPARNA BIO-PHARMATECH PRIVATE LIMITED	Managing director	29/03/2007	29/03/2007	30/03/2009	Active	NO
8	U63033KL1994PLC007803	COCHIN INTERNATIONAL AIRPORT LIMITED	Managing director	29/07/2009	19/07/2007	09/06/2011	Active	NO
9	U29299KL1989PLC005405	BRAHMOS AEROSPACE THIRUVANANTHAPURAM LIMITED	Director	25/09/2014	31/12/2007	-	Active	NO
10	U35900KA2008PTC044963	EMSAC Engineering Private Limited	Additional director	11/03/2008	11/03/2008	-	Active	NO
11	U35303KL2005PLC018632	COCHIN INTERNATIONAL AVIATION SERVICES LIMITED	Managing director	08/07/2008	02/06/2008	23/06/2011	Active	NO
12	U63033KA2008PTC047734	MAINI GLOBAL AEROSPACE PRIVATE LIMITED	Director	10/09/2008	10/09/2008	31/03/2013	Active	NO
13	U62100KL2006PLC019227	AIR KERALA INTERNATIONAL SERVICES LIMITED	Additional director	06/10/2008	06/10/2008	07/08/2009	Active	NO
14	U74140KA2008PTC047954	CHIVARO TECHNOLOGIES PRIVATE LIMITED	Director	30/09/2011	10/12/2010	26/03/2012	Active	NO
15	U33301GA1991PLC001148	TITAN TIMEPRODUCTS LIMITED	Director	20/07/2011	19/04/2011	-	Active	NO
16	U55205KA2011PTC061497	SIKA TOURISM PRIVATE LIMITED	Additional director	12/05/2012	12/05/2012	-	Active	NO
17	U80301KA2014NPL076367	AEROSPACE AND AVIATION SECTOR SKILL COUNCIL	Nominee director	12/09/2014	12/09/2014	-	Active	NO

Name :

Mr. Atam Prakash Arya

Designation :

Director

Address :

Lake House, Opposite Tata Motors, Pimpri, Pune – 411018, Maharashtra, India

Date of Birth/Age :

15.10.1947

Date of Appointment :

26.09.2008

DIN No.:

00020001

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	U34101JH1993PTC005546	TATA CUMMINS Private Limited	Director	25/09/1996	25/09/1996	23/07/2007	Active	NO
2	U29113PN1994FTC139153	CUMMINS TECHNOLOGIES INDIA Private Limited	Director	18/06/1999	18/06/1999	27/02/2007	Active	NO
3	U34100MH2000PLC124874	TML Drivelines Limited	Director	27/02/2001	27/02/2001	22/08/2007	Active	NO
4	U29130MH2000PLC124872	HV TRANSMISSIONS LIMITED	Director	27/02/2001	27/02/2001	22/08/2007	Amalgamated	NO
5	U29100PN2000PLC130290	TAL MANUFACTURING SOLUTIONS LIMITED	Managing director	12/07/2007	17/05/2007	16/10/2012	Active	NO
6	U85110KA1989PLC013224	TATA ADVANCED MATERIALS LIMITED	Director	26/09/2008	26/11/2007	-	Active	NO
7	U99999PN1997PLC110139	TATA TOYO RADIATOR LIMITED	Director	25/07/2009	30/12/2008	17/08/2011	Active	NO
8	U34300PN1996PLC015038	JOHNSON CONTROLS AUTOMOTIVE LIMITED	Director	25/09/2012	26/08/2011	25/03/2013	Active	NO

Name :

Mr. Jagdish Singh Dhillon

Designation :

Director

Address :

House No.3104, Sector – 32 – D, Chandigarh – 160022, India

Date of Birth/Age :

15.03.1941

Date of Appointment :

10.11.2009

DIN No.:

00115838

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	U50101CH1999PTC026912	MILLICENT MOTORS Private LIMITED	Managing director	01/04/2008	04/01/2002	-	Active	NO
2	L74999MH1989PLC052384	ROLTA INDIA LIMITED	Director	30/04/2003	30/04/2003	24/11/2012	Active	NO
3	U74140CH2008PTC031201	AGILYST CONSULTING PRIVATE LIMITED	Director	11/04/2008	11/04/2008	04/05/2012	Active	NO
4	U85110KA1989PLC013224	TATA ADVANCED MATERIALS LIMITED	Director	24/09/2010	10/11/2009	-	Active	NO

Name :

Dr. Tridibesh Mukherjee

Designation :

Director

Address :

5, C Road Northern Town Jamshedpur – 831001, Jharkhand, India

Date of Birth/Age :

13.10.1942

Date of Appointment :

18.08.2011

DIN No.:

00004777

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	L27310WB1990PLC050000	TATA METALIKS LIMITED	Director	26/06/1995	26/06/1995	11/01/2008	Active	NO
2	U24111JH1995PLC009020	JAMIPOL LIMITED	Director	12/10/1999	12/10/1999	28/12/2007	Active	NO
3	L27100MH1907PLC000260	TATA STEEL LIMITED	Director	28/08/2008	01/08/2000	31/03/2009	Active	NO
4	U00000WB2001PLC115841	mjunction services limited	Nominee director	07/01/2002	07/01/2002	29/12/2007	Active	NO
5	U63090WB2002PLC094134	TM INTERNATIONAL LOGISTICS LIMITED	Nominee director	18/01/2002	18/01/2002	29/12/2007	Active	NO
6	L24239MH1939PLC002893	TATA CHEMICALS LIMITED	Director	04/03/2002	04/03/2002	30/03/2009	Active	NO
7	U23101WB2005PLC101608	HOOGHLY MET COKE & POWER COMPANY LIMITED	Director	10/02/2005	10/02/2005	11/01/2008	Amalgamated	NO
8	L74999WB1974PLC041725	TIL LIMITED	Director	28/07/2009	04/06/2009	-	Active	NO
9	L55101WB1983PLC036362	NICCO CORPORATION LIMITED	Director	16/09/2009	10/08/2009	15/09/2014	Active	NO
10	U75142WB1967SGC026988	WEST BENGAL INDUSTRIAL DEVELOPMENT CORPN LIMITED	Director	30/12/2010	30/12/2009	-	Active	NO
11	L65993TN2004PLC052856	RANE (MADRAS) LIMITED	Director	31/07/2014	18/01/2010	-	Active	NO
12	L25209PN1961PLC012046	BHARAT FORGE LIMITED	Director	04/09/2014	23/01/2010	-	Active	NO
13	U29150WB1995PTC072501	TRACTORS INDIA PRIVATE LIMITED	Director	29/07/2010	30/03/2010	-	Active	NO
14	U85110KA1989PLC013224	TATA ADVANCED MATERIALS LIMITED	Director	18/08/2011	10/06/2011	-	Active	NO
15	L51109WB1974PLC029637	IFB INDUSTRIES LIMITED	Director	30/07/2014	29/07/2011	-	Active	NO

KEY EXECUTIVES

Name :	Shashidar S K
Designation :	Secretary
Address :	#123, Benaka 12^th Cross, 6^th Main NGEF Layout, Nagar Bhavi, Bangalore – 560072, Karnataka, India
Date of Birth/Age :	20.12.1966
Date of Appointment :	10.02.2009
PAN No.:	ABLPK2743C

MAJOR SHAREHOLDERS

As on 04.09.2014

SAHREHOLDING DETAILS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on 04.09.2014

Category	Percentage
Bodies corporate	99.91
Other top fifty shareholders	0.02
Others	0.07
Total	100.00

BUSINESS DETAILS

Line of Business :

The company is primarily engaged in the business of manufacture of composite products for applications in aerospace, defense and industrial segments.

Products :

Product Description	Item Code No. (ITC Code)
Flexible Armour	63079019
Aerospace Products	88039000
Rigid Armor	65061090
Vehicle Armour	65061090
Container	86090000
Medical Electronic Products	90180000
Vehicle Armour-BP Steel	65061090
Other Products	82090090

Brand Names :

--

Agencies Held :

--

Exports :

Not Available

Imports :

Not Available

Terms :

Selling :

Not Available

Purchasing :

Not Available

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Available
Name of the Person :	Not Available
Contact No.:	Not Available
Since How Long Known :	Not Available
Experience :	Not Available
Maximum Limit Dealt :	Not Available
Remark :	Not Available

Customers :

Reference :	Not Available
Name of the Person :	Not Available
Contact No.:	Not Available
Since How Long Known :	Not Available
Experience :	Not Available
Maximum Limit Dealt :	Not Available
Remark :	Not Available

No. of Employees :

Not Available

Bankers :

• Canara Bank, Overseas Branch, Ramanashree Arcade, M G Road, Bangalore – 560001, Karnataka, India
• Bank of Baroda, Corporate Financial Services Branch, 26, Richmond Road, Bangalore – 560025, Karnataka, India
• State Bank of India
• Syndicate Bank

Facilities :

SECURED LOANS	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
LONG TERM BORROWINGS
Loans repayable on demand from banks	851.041	1,037.136
SHORT TERM BORROWINGS
Loans repayable on demand from banks	518.405	451.888
Total	1369.446	1,489.024

Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	100/2, Richmond Road, Bangalore – 560025, Karnataka, India
E-Mail :	vsrikumar@deloitte.com
PAN No.:	AACFD3771D
Memberships :	--
Collaborators :	--
Holding Company :	Tata Industries Limited CIN No.: U44003MH1945PLC004403
Ultimate Holding Company :	Tata Sons Limited CIN No.: U99999MH1917PLC000478

CAPITAL STRUCTURE

As on 04.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
160000000	Equity Shares	Rs.10/- each	Rs.1600.000 Million
10000000	Preference Shares	Rs.100/- each	Rs.1000.000 Million
	Total		Rs.2600.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
141763287	Equity Shares	Rs.10/- each	Rs.1417.633 Million
10000000	Preference Shares	Rs.100/- each	Rs.1000.000 Million
	Total		Rs.2417.633 Million

FINANCIAL DATA

[all figures are in Rupees Million]

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	2,417.633	1,917.633	1,417.633
(b) Reserves & Surplus	(2,187.239)	(1,713.169)	(1,182.177)
(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)	230.394	204.464	235.456
(3) Non-Current Liabilities
(a) long-term borrowings	851.041	1,037.136	1,073.184
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	13.454	0.000	0.000
(d) long-term provisions	0.000	13.766	11.965
Total Non-current Liabilities (3)	864.495	1,050.902	1,085.149
(4) Current Liabilities
(a) Short term borrowings	518.405	451.888	675.639
(b) Trade payables	456.342	351.085	331.006
(c) Other current liabilities	392.124	408.009	379.069
(d) Short-term provisions	4.927	2.824	1.850
Total Current Liabilities (4)	1,371.798	1,213.806	1,387.564
TOTAL	2,466.687	2,469.172	2,708.169
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1,460.068	1,516.907	1,394.242
(ii) Intangible Assets	67.674	98.471	128.882
(iii) Capital work-in-progress	9.167	18.179	4.063
(iv) Intangible assets under development	0.000	0.000	190.502
(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	23.525	17.929	17.160
(e) Other Non-current assets	0.000	0.000	32.909
Total Non-Current Assets	1,560.434	1,651.486	1,767.758
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	428.763	442.901	313.663
(c) Trade receivables	375.843	268.248	479.203
(d) Cash and cash equivalents	7.639	0.581	1.968
(e) Short-term loans and advances	65.625	57.276	90.422
(f) Other current assets	28.383	48.680	55.155
Total Current Assets	906.253	817.686	940.411
TOTAL	2,466.687	2,469.172	2,708.169

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2014	31.03.2013	31.03.2012
	SALES
		Income		1,071.366	755.812	876.293
		Other Income		3.788	10.440	6.421
		TOTAL (A)		1,075.154	766.252	882.714
Less	EXPENSES
		Cost of Materials Consumed		572.165	450.299	521.472
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade		45.958	(54.656)	141.894
		Employee Benefits Expenses		291.326	305.923	267.123
		Other Expenses		323.253	281.348	356.179
		TOTAL (B)		1,232.702	982.914	1,286.668
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			(157.548)	(216.662)	(403.954)
Less	FINANCIAL EXPENSES (D)			191.696	197.709	179.317
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			(349.244)	(414.371)	(583.271)
Less	DEPRECIATION/ AMORTISATION (F)			124.826	116.621	111.667
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			(474.070)	(530.991)	(694.938)
Less	TAX (H)			0.000	0.000	0.000
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			(474.070)	(530.991)	(694.938)
	EARNINGS IN FOREIGN CURRENCY
			Export Earnings	751.984	345.045	334.873
	TOTAL EARNINGS			751.984	345.045	334.873
	IMPORTS
			Raw Materials	NA	425.663	350.350
			Capital Goods	NA	0.000	1.009
	TOTAL IMPORTS				425.663	351.359
	Earnings / (Loss) Per Share (Rs.)			(3.34)	(3.75)	(4.90)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	(44.25)	(70.25)	(79.30)
Operating Profit Margin (PBDIT/Sales)	(%)	(14.71)	(28.67)	(46.10)
Return on Total Assets (PBT/Total Assets}	(%)	(19.29)	(21.66)	(27.65)
Return on Investment (ROI) (PBT/Networth)		(2.06)	(2.60)	(2.95)
Debt Equity Ratio (Total Debt /Networth)		5.94	7.28	7.43
Current Ratio (Current Asset/Current Liability)		0.66	0.67	0.68

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Share Capital	1417.633	1917.633	2417.633
Reserves & Surplus	(1182.177)	(1713.169)	(2187.239)
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	235.456	204.464	230.394
Long Term borrowings	1073.184	1037.136	851.041
Short Term borrowings	675.639	451.888	518.405
Total borrowings	1748.823	1489.024	1369.446
Debt/Equity ratio	7.427	7.283	5.944

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Sales	876.293	755.812	1,071.366
		(13.749)	41.750

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Sales	876.293	755.812	1,071.366
Profit	(694.938)	(530.992)	(474.070)
	(79.30%)	(70.25%)	(44.25%)

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	Yes

BACKGROUND OF THE COMPANY

The company formerly known as Matrix Materials Limited, was incorporated in November 10, 1989 under the Companies Act, 1956. The Company is primarily engaged in the business of manufacture of composite products for applications in Aerospace, Defense and Industrial Segments

OVERVIEW OF BUSINESS ENVIRONMENT

The global commercial aerospace industry is expected to sustain its significant revenue and earnings growth in 2014 and beyond, driven primarily by accelerated replacement cycle of obsolete aircraft with next generation fuel efficient aircraft, as well as continued increase in passenger travel demand. Also contributing to the industry's growth are the overall improvement in the global economy, emergence of low cost carriers and increasing demand for aircraft from the developing economies of China and India. Commercial aircraft production is expected to be between 29,000 and 34,000 units over the next 20 years, with an estimated value in excess of USD 4 trillion.

The Aerospace Industry and supply chain has to cater to the aggressive pricing expectations by airline operators due to lowering of airfares and more product choices. This is likely to impact the operating margins in the industry. The supply chain is constantly innovating to decrease costs and increase the efficiency in operations.

The key developments in the Indian industry relate to the Defense Procurement Procedure 2013 of the Government of India. It emphasizes indigenization and the possibility of increased foreign direct investment in the defense sector. While India is rapidly building capabilities to emerge as a preferred destination for manufacture of aerospace components and systems, the industry is challenged by high entry barriers due to lack of access to technology, raw materials, skills and long gestation periods to achieve profitability. The new Defense Procurement Procedure will perhaps encourage collaboration with global aerospace and defense firms that will help address some of the challenges that Indian companies currently face.

The use of advanced composites, which the Company is engaged in, is expected to play an increasingly significant role in aircraft manufacturing. Usage of composites is lucrative in an aircraft because composites help in reducing the overall weight of the aircraft, resulting in better fuel efficiency. Composites are estimated to enable a 20% saving in terms of weight, along with lower production time and improved damage tolerance. The growth in the market for composites will, in future, also be driven by usage of composites in the Boeing 787 Dreamliner and

Airbus A350XWB, which contain more than 50% of composite materials by weight, in their aero structures

With respect to Defense and Industrial Composites, while the Industrial Composites market has potential for growth, the market outlook for personnel armor and vehicle armor continues to have low visibility. However, the increased emphasis on modernization of defense forces by the new Government is expected to provide much needed impetus to this industry in the coming years

FINANCIAL RESULTS

The Company's sales revenue for the year 2013-2014 grew by 42% to Rs.1071.100 Million, as against Rs.754.700 Million achieved in the previous year.

The Aerospace sales revenue grew by 92% from Rs.468.500 Million in 2012-2013 to Rs.900.500 Million, aided by ramping up of manufacture of wing components for A350 XWB program and stabilization of production in various other aircraft programs. The Aerospace business has registered a compounded annual growth rate of 42% over the past 5 years.

On the other hand, sales revenue from the Defense and Industrial Composites declined by 40% from Rs.286.200 Million in 2012-2013 to Rs.170.600 Million. The declining trend in defense revenue from the past 3 years is primarily due to reduced spending on defense procurement by the Government of India, para military forces and police forces.

During the year 2013-2014, the Company, registered a further reduction in operating loss and net loss as compared to the previous year due to higher revenue, efficiencies in raw material consumption and control of operating expenses, including payroll, which was lower than the previous year.

OPERATIONS AND OUTLOOK

TAML is at a critical phase in its growth and development with its involvement in both the major aircraft programs, viz. Boeing 787 Dreamliner and Airbus 350 XWB. TAML is in the midst of production ramp-up to meet the aggressive production targets from these programs in the coming years. In order to improve its profitability and efficiency, the Company is consolidating its customer base with a clearly defined product strategy and market positioning to leverage on its unique strengths.

The Company's business outlook for the financial year 2014-2015 is encouraging due to stabilization of various aerospace programs and the possibility of acquisition of new contracts by leveraging on its current performance. In the defense and industrial composites segment, the Company's business is likely to remain flat. While there is a possibility of significant upside if there are large Government tenders decided/ awarded during the coming financial year, there is no visibility on this as yet.

The Company has launched a series of performance transformation initiatives, leading to significant improvement in customer schedule adherence, organization culture, employee productivity, and a number of other operational metrics. These initiatives have resulted in superior program execution and are expected to increase the company's profitability in the years to come.

However, the Company's profitability for the financial year 2014-2015 is expected to continue to be negative, although at much lower levels of loss, as the Company is still in the stage of ramp up to breakeven, which is planned for the following year.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10216891	25/03/2010	2,100,000,000.00	Canara Bank	Overseas Branch, Ramanashree Arcade, No.18, M. G. Road, Bangalore, Karnataka - 560001, India	A83476374
2	10122177	28/11/2013 *	3,780,000,000.00	Canara Bank	Overseas Branch, Ramanashree Arcade, M.G.Road, Bangalore, Karnataka - 560001, India	B92729185
3	10117800	14/08/2008	29,300,000.00	Syndicate Bank	Gandhinagar Branch, 2nd Cross, Gandhinagar, Bangalore, Karnataka - 560009, India	A43879238
4	10094949	28/09/2011 *	1,910,000,000.00	Canara Bank	Overseas Branch, Ramanashree Arcade, M G Road, Bangalore, Karnataka - 560001, India	B23625387
5	80012499	15/02/2006	86,252,000.00	Vikram Sarabhai Space Centre	Indian Space Research Organisation,, Department Of Space, Thiruvananthapuram, Kerala - 695022, 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.62.34
UK Pound	1	Rs.92.65
Euro	1	Rs.68.12

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	--
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.