MIRA INFORM REPORT

Report Date :

27.03.2007

IDENTIFICATION DETAILS

Name :	JAGANNATH TEXTILE COMPANY LIMITED
Registered Office :	23, 23-1 [Old No. 14], East Periaswamy Road, R.S. Puram, Coimbatore - 641 002. Tamilnadu
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	11.05.1987
Com. Reg. No.:	18-1965
CIN No.: [Company Identification No.]	U17111TZ1987PLC001965
TAN No.: [Tax Deduction & Collection Account No.]	CMBJ03187C CMBJ03038A CMBJ03006D
Legal Form :	A closely held public limited liability company.
Line of Business :	Manufacturer of Cotton Waste, Cotton Yarn and Cotton Fabrics.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	23, 23-1 [Old No. 14], East Periaswamy Road, R.S. Puram, Coimbatore - 641 002. Tamilnadu, INDIA
Tel. No.:	91-422-4304000 / 2540074
Fax No.:	91-422-4304049 / 2545342
E-Mail :	response@jtcl.in
Website :	http://www.jtcl.in
Factory 1 :	4/145, Kaduvettipalayam, Karumathampatti (Post), Palladam Taluk, Coimbatore - 641659. Tamilnadu, INDIA
Tel. No.:	91 4296 288901 / 288902 / 288903
Fax No.:	91 4296 288904

DIRECTORS

Name :	Mr. Rameshkumar Tibrewal
Designation :	Managing Director
Address :	14-Amarjothi Apartments, 93 West Bashyakarulu Street, R S Pcram, Coimbatore – 641002, Tamilnadu, India
Date of Birth/Age :	03.08.1959
Date of Appointment :	11.05.1987
Name :	Mr. Manojkumar Tibrewal
Designation :	Director
Address :	10-Amarjothi Apartments, 93 West Bashyakarulu Street, R S Pcram, Coimbatore – 641002, Tamilnadu, India
Date of Birth/Age :	02.01.1960
Date of Appointment :	11.05.1987
Date of Ceasing :	22.08.2005
Name :	Mr. Mohanlal Tibrewal
Designation :	Director
Address :	12-Amarjothi Apartments, 93 West Bashyakarulu Street, R S Pcram, Coimbatore – 641002, Tamilnadu, India
Date of Birth/Age :	09.05.1951
Date of Appointment :	11.05.1987
Date of Ceasing :	22.08.2005
Name :	Mr. K N Sreedharan
Designation :	Director
Address :	Sree Vyasa Kuteera, 47-48, Bharathi Park, 6^th Cross Road, Saibaba Colony, Coimbatore – 641011, Tamilnadu, India
Date of Birth/Age :	08.03.1939
Date of Appointment :	22.08.2005
Date of Ceasing :	22.08.2005
Name :	Mr. S Palanisamy
Designation :	Director
Address :	3/3, Raghavendra Avenue, Behind Teachers Colony, V K Road, Vilankurichy Post, Coimbatore – 641035, Tamilnadu, India
Date of Birth/Age :	16.01.1947
Date of Appointment :	22.08.2005
Date of Ceasing :	22.08.2005
Name :	Mr. Gauri Shankar Tibrewal
Designation :	Director
Address :	41, Dobson Road, Howrah – 711101, West Bengal
Date of Birth/Age :	01.01.1947
Date of Appointment :	22.08.2005
Date of Ceasing :	22.08.2005

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Deepak Kumar Tibrewal	100
Ushadevi Tibrewal	544500
Mohanlal Tibrewal	200
Saraswathi Devi Tibrewal	100
Gojri Shankar Tibrewal	50
Hemalatha Tibrewal	100
Binod Kumar Tibrewal	100
Gulabchandra Kejriwal	100
Abhishek Tibrewal	255500
Anubhav Tibrewal	255500
Anurag Tibrewal	255750
Gangotri Textiles Limited	1500000
Category	Percentage of Holding
Directors or relative of directors	99.19 %
Other top fifty shareholders	0.81 %
Total	100.00 %

BUSINESS DETAILS

Line of Business :

Manufacturer of Cotton Waste, Cotton Yarn and Cotton Fabrics.

Products :

Product Description	ITC Code No
Cotton Yarn	52011
Cotton Waste	520200

GENERAL INFORMATION

No. of Employees :

About 1000

Bankers :

State Bank of India Commercial Branch, Coimbatore – 641018 State Bank of Hyderabad United India Building, 1028, Avinashi Road, Coimbatore – 641018 State Bank of Patiala R. S. Puram, Coimbatore – 641002 The South Indian Bank Limited Industrial Finance Branch, Trichy Road, Coimbatore – 641018 Corporation Bank Main Branch, Oppanakara Street, Coimbatore – 641001 State Bank of Pariala No. 654-656, Mettupalayam, Coimbatore - 641002

Banking Relations :	Satisfactory
Auditors :
Name :	Thakker and Sanghani Chartered Accountants 16/77, Syrain Church Road No. 1, Coimbatore – 641001, Tamilnadu, India Sri Kishen and Company Chartered Accountants No. 11, Street No. 1, S. N. Layout, Tatabad, Coimbatore – 641012, Tamilnadu, India

CAPITAL STRUCTURE

As on 30.09.2006

Authorised Capital :

No. of Shares	Type	Value	Amount
17,000,000	Equity Shares	Rs. 10/- each	Rs. 170.000 Millions
15,000,000	Preference Shares	Rs. 10/- each	Rs. 150.000 Millions
	Total		Rs. 320.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14,715,000	Equity Shares	Rs. 10/- each	Rs. 147.150 Millions
15,000,000	Preference Shares	Rs. 10/- each	Rs. 150.000 Millions
	Total		Rs. 297.150 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		250.000	238.225	20.000
2] Share Application Money		95.072	1.000	0.000
3] Reserves & Surplus		72.851	39.002	33.059
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		417.923	278.227	53.059
LOAN FUNDS
1] Secured Loans		1073.410	1023.074	0.000
2] Unsecured Loans		58.105	19.177	5.808
TOTAL BORROWING		1131.515	1042.251	5.808
DEFERRED TAX LIABILITIES		35.047	16.165	0.000
TOTAL		1584.485	1336.643	58.867
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1073.202	366.668	38.356
Capital work-in-progress		46.922	594.725	0.000
INVESTMENT		4.673	0.173	14.390
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	253.423	350.460	0.000
	Sundry Debtors	195.680	10.194	0.000
	Cash & Bank Balances	10.571	11.516	4.669
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	94.917	60.171	15.346
Total Current Assets		554.591	432.341	20.015
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	66.909	48.099	6.823
	Provisions	29.154	10.230	8.017
Total Current Liabilities		96.063	58.329	14.840
Net Current Assets		458.528	374.012	5.175
MISCELLANEOUS EXPENSES		1.160	1.065	0.946
TOTAL		1584.485	1336.643	58.867

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		1293.708	12.668
Other Income		24.653	62.193	31.764
Total Income		1318.361	74.861	31.764
Profit/(Loss) Before Tax		81.750	27.972	14.748
Provision for Taxation		29.079	13.457	1.585
Profit/(Loss) After Tax		52.671	14.515	13.163
Imports :
	Capital Goods	NA	454.916	NA
	Others	NA	0.097	NA
Total Imports		NA	455.013	NA
Expenditures :
	Raw Material Consumed	767.818	27.401	0.000
	Purchases made for re-sale	135.369	0.000	0.000
	Consumption of stores and spares parts	1.712	0.256	0.000
	Increase/(Decrease) in Finished Goods	[25.407]	[27.656]	0.000
	Salaries, Wages, Bonus, etc.	17.365	4.833	6.123
	Managerial Remuneration	0.154	0.369	0.360
	Payment to Auditors	0.121	0.055	0.025
	Interest	47.286	3.542	0.004
	Insurance Expenses	7.297	1.406	0.340
	Power & Fuel	128.566	16.959	1.019
	Depreciation & Amortization	51.128	8.515	0.000
	Other Expenditure	105.202	11.209	9.145
Total Expenditure		1236.611	46.889	17.016

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	4.00	19.39	41.44
Net Profit Margin (PBT/Sales)	(%)	3.32	220.81	46.43
Return on Total Assets (PBT/Total Assets}	(%)	5.02	3.50	25.27
Return on Investment (ROI) (PBT/Networth)		0.20	0.10	0.28
Debt Equity Ratio (Total Liability/Networth)		2.94	3.96	0.39
Current Ratio (Current Asset/Current Liability)		5.77	7.41	1.35

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets

Ø Land

Ø Building

Ø Plant and Machinery

Ø Vehicles

Ø Furniture

Ø Office Equipments

Ø Livestock

The company has export obligation for value of Rs. 1582.400 Millions under EPCG scheme against which are required to be fulfilled as per various schedules.

AS PER WEBSITE

Jagannath Textile Company Limited (JTCL) though a relatively new venture, has made remarkable progress in spinning quality yarn. JTCL has an astonishing Production capability, productivity and a committed team of skilled workers numbering approximately 1000. Under the guidance of its promoter, Shri Ramesh Kumar Tibrewal, who personify the true spirit of enterprise, JTCL has established a distinct identity in the textile market within a decade of its existence.

JTCL has a unique inspirational work culture. JTCL rests on strong ethical and moral foundations, relying on the deeds of wisdom propagated by Swami Vivekananda, Mahatma Gandhi, and Rabindranath Tagore and their first Citizen, His Excellency

Dr. A.P.J. Abdul Kalam.

With strong business acumen, successfully demonstrated by its Promoter, the company has progressed steadily from dealing in cotton waste to the position of eminence it holds in manufacture of Superior Quality yarn.

The location has been chosen to promote employment generation in the interior and rural areas of Coimbatore district. JTCL commitments are not purely business centric. It encompasses a wider societal obligation. The promoter have chosen, Karuvalur, Karumathampatti, near Coimbatore, as the Plant location. The small underdeveloped village has been chosen to promote a social cause of, “Enabling Progress Through Enterprise” Further, the plant location meets the business requirements. The plant is close to major consumption centres like Tirupur, Somanur, Palldam, Karur, Madurai, and Erode, thereby promising enormous scope for expansion of the company.

At JTCL, learning and sharing of knowledge becomes an integral part of its work culture. This unique work culture has been able to spin the work force together.

Swami Vivekananda’s words of wisdom form the back bone of the entire workforce at JTCL, spinning its success story without any major hiccups.

100% cotton - Superior Quality Yarn / Auto Coro Yarn

Count Range : 2 s to 30 s

Available in

Cheese

Cone

Hanks (SHPR & DHCR)

Double (TFO)

Multifold

Product Range

Count ranges from 2’s to 30’s in both cheese and cone form from “AUTOCORO”. Yarn can be doubled in TFO and also given in hank form of SHPR / DHCR / DHPR. Package size of cheese can be given upto 4 Kg's.

Speciality

Their Speciality of the unit enables production of multiple types of yarn at a time, simplifying the entire manufacturing process. Different varieties of yarn like the Electronically cleared yarn, without EYC, Warp Yarn, Weft, Hosiery yarn, Slub Yarn, Doubled Yarn, Contaminated Cleared Yarn all can be produced at a time.

Deliver

Uncompromising quality norms has enabled JTCL easily scale new heights of success within a short span of time, With dedication and team work of its workforce, JTCL is moving from strength to strength with confidence, ease and style.

Bankers Charges Report as per Registry

Name of the company	JAGANNATH TEXTILE COMPANY LIMITED
Presented By	Mohanlal Tibrewal, Whole Time Director
1) Date and description of instrument creating the change	Agreement of Hypothecation of Goods and Assets executed on 16.07.2004 in favour of State Bank of Pariala, Coimbatore Branch
2) Amount secured by the charge/amount owing on the securities of charge	Credit facilities aggregating Rs. 60.000 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation of all present and future goods, book-debts, and all other movable assets of the company.
4) Gist of the terms and conditions and extent and operation of the charge.	Aforesaid properties shall stand hypothecated to the bank by way of first charge as security for payment and discharge by the company to the bank on demand the loan amount and all other moneys at any time payable by the company.
5) Name and Address and description of the person entitled to the charge.	State Bank of Pariala No. 654-656, Mettupalayam, Coimbatore - 641002
6) Date and brief description of instrument modifying the charge	NA
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	NA

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.43.14
UK Pound	1	Rs.84.71
Euro	1	Rs.57.58

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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