MIRA INFORM REPORT

Report Date :

11.12.2008

IDENTIFICATION DETAILS

Name :	PONDICHERRY TEXTILE CORPORATION LIMITED
Registered Office :	Anglo French Textile Mill Premises, Cuddalore Road, Mudaliarpet, Pondicherry – 605004
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	25.11.1985
Com. Reg. No.:	59-369
CIN No.: [Company Identification No.]	U17111PY1985SGC000369
TAN No.: [Tax Deduction & Collection Account No.]	CHEPO07652B
PAN No.: [Permanent Account No.]	AAACP1907G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacture and Trader of Textile

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 5000000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a State Government owned enterprise having moderate track. Company’s profitability is under severe pressure and has huge amount of accumulated losses. Payments are reported as slow at times, mainly due to the slow nature of work of Government officials. The company can be considered for small to mediocre business dealings.

INFORMATION DECLINED BY

Name :	Mr. Rehman
Designation :	Accounts Officer
Date :	10.12.2008

LOCATIONS

Registered Office/ Factory :	Anglo French Textile Mill Premises, Cuddalore Road, Mudaliarpet, Pondicherry – 605004, India
Tel. No.:	91-413-2358951
Fax No.:	91-413-2357710
E-Mail :	anglofrench@vsnl.com ramanujampdy@yahoo.co.in
Website :	http://www.anglofrenchtextiles.com

DIRECTORS

Name :	Mr. B. R. Babu
Designation :	Managing Director
Address :	B-5, Type V, Government Quarters, Lawspet, Pondicherry, India
Date of Birth/Age :	15.08.1957
Date of Appointment :	26.05.2003
Name :	Mr. T. M. Balakrishnan
Designation :	Chairman and Managing Director
Address :	58, Indira Nagar, Gorimedu, Pondicherry – 605006, India
Date of Birth/Age :	05.05.1955
Date of Appointment :	24.01.2007
Name :	Mr. K. R. Krishnamoorthy
Designation :	Director
Address :	11/9, Annai Abirami Street, Meenakshi Nagar, Villapuram, Madurai, Tamilnadu, India
Date of Birth/Age :	01.06.1946
Date of Appointment :	19.07.2000
Name :	Mr. M. M. Chokalingam
Designation :	Director
Address :	National Textile Corporation (TN and P) Limited, NTC House, 35-B, Somasoundaram Mills Road, Coimbatore, Tamilnadu, India
Date of Birth/Age :	10.04.1959
Date of Appointment :	05.11.2004
Name :	Mt. A. C. Verma
Designation :	Director
Address :	56, Indira Nagar, Gorimedu, Pondicherry – 605006, India
Date of Birth/Age :	12.06.1969
Date of Appointment :	07.11.2006

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 31.12.2007)

Names of Shareholders	No. of Shares
The President of India represented by secretary (Industries and Commerce)	2470057
The Chief Secretary to Government of Puducherry	1
Secretary, Planning and Development Commissioner	1
Secretary (Industries and Commerce)	1
Secretary (Finance)	1
Secretary (Law)	1
Secretary (Education)	1
Secretary (Revenue)	1
Total	2470064

(As on 23.02.2008)

Names of Allotted	No. of Shares Allotted
Secretary (Industries and Commerce)	12133

(As on 30.09.2007)

Category	Percentage
Government (Central and State)	100.00

BUSINESS DETAILS

Line of Business :

Manufacture and Trader of Textile

Products :

Products Description	Item Code No.
Cotton Fabrics	52.08
Blended Fabrics	52.10

GENERAL INFORMATION

Bankers :

Not Available

Facilities :

Secured Loans	31.03.2007 (Rs. In Millions)
- From Banks (Secured by hypothecation of all the company’s movable assets and book debts present and future created on the company’s stock of raw materials, semi finished and finished goods, consumable stores and by creation of equitable mortgage on fixed assets present and future. (Including interests accrued and due Rs.1.479 Millions)	169.166
From Pondicherry Industrial Promotion Development and Investment Corporation Limited (Secured by hypothecation of yarn, waste cotton, cloth as collateral security, (Including interests accrued and due Nil)	15.000
Total	184.166
Unsecured Loans	31.03.2007 (Rs. In Millions)
From Government	65.538
Total	65.538

Banking Relations :	-
Financial Institutions :	Pondicherry Industrial Promotion Development and Investment Corporation Limited No.60, Romain Rolland Street, Pondicherry - 605001, India
Auditors :
Name :	Chandran and Raman Chartered Accountant
Address :	“Paragon” 2 Dr. Radhakrishnan Salai, 2^nd Street, Mylapore, Chennai – 600004, Tamilnadu, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
2800000	Equity Shares	Rs.1000/- each	Rs.2800.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2470064	Equity Shares	Rs.1000/- each	Rs.2470.064 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		2470.064	2300.064	2140.164
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1377.364	1377.364	402.178
4] (Accumulated Losses)		(2800.563)	(2487.300)	(2225.460)
NETWORTH		1046.865	1190.128	316.882
LOAN FUNDS
1] Secured Loans		184.166	190.502	167.431
2] Unsecured Loans		65.538	65.538	76.708
TOTAL BORROWING		249.704	256.040	244.139
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1296.569	1446.168	561.021
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1331.893	1341.523	359.263
Capital work-in-progress		1.411	2.945	18.927
INVESTMENT		0.005	0.005	0.005
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	199.916	272.555	308.889
	Sundry Debtors	123.191	94.488	106.683
	Cash & Bank Balances	10.899	41.269	75.108
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	126.367	126.862	110.303
Total Current Assets		460.373	535.174	600.983
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	381.738	326.341	317.726
	Provisions	140.403	137.378	135.883
Total Current Liabilities		522.141	463.719	453.609
Net Current Assets		(61.768)	71.455	147.374
MISCELLANEOUS EXPENSES		25.028	30.240	35.452
TOTAL		1296.569	1446.168	561.021

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		716.846	758.300	372.900
Other Income		0.000	0.000	0.000
Total Income		716.846	758.300	372.900
Profit/(Loss) Before Tax		(312.542)	(258.357)	(180.267)
Provision for Taxation		0.721	3.483	(0.735)
Profit/(Loss) After Tax		(313.263)	(261.840)	(179.532)
Expenditures :
	Depreciation & Amortization	11.970	12.434	12.988
	Other Expenditure	1017.418	1004.223	540.179
Total Expenditure		1029.388	1016.657	553.167

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	(43.70)	(34.53)	(48.14)
Net Profit Margin (PBT/Sales)	(%)	(43.60)	(34.07)	(48.34)
Return on Total Assets (PBT/Total Assets}	(%)	(17.44)	(13.77)	(18.77)
Return on Investment (ROI) (PBT/Networth)		(0.30)	(0.22)	(0.57)
Debt Equity Ratio (Total Liability/Networth)		0.74	0.60	2.20
Current Ratio (Current Asset/Current Liability)		0.88	1.15	1.32

LOCAL AGENCY FURTHER INFORMATION

FORM 8:

Corporate identity number of the company	U17111PY1985SGC000369
Name of the company	PONDICHERRY TEXTILE CORPORATION LIMITED
Address of the registered office or of the principal place of business in India of the company	Anglo French Textile Mill Premises, Cuddalore Road, Mudaliarpet, Pondicherry – 605004, India
This form is for	Creation of charge
Type of charge	Movable Property
Particular of charge holder	Pondicherry Industrial Promotion Development and Investment Corporation Limited No.60, Romain Rolland Street, Pondicherry - 605001, India U65923PY1974SGC000121 pipdic@vsnl.com
Nature of instrument creating charge	Deed of Hypothecation dated 07.12.2007and Term Loan Agreement Dated 07.12.2007
Date of instrument Creating the charge	07.12.2007
Amount secured by the charge	Rs.50.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: The loan shall carry interests at the rate of 13.25% p.a. and the interests shall be payable at the end of each quarter ending March, June, September and December. In case of default in payment of principal or interests, an additional interests at 2% p.a. will be charged on the defaulted amount for the defaulted period. Terms of repayment: The loan shall be repayable in four quarterly installments @Rs.12.500 Millions each commencing from one month from the date of first disbursement. Margin: Nil Extent and Operation of the charge: Collateral security for a value of not less than Rs.50.000 Millions by way of hypothecation of waste cotton, yarn and cloth stocks (all stock including raw materials, semi-finished goods and finished goods) for a value of not less than Rs.50.000 Millions
Particulars of the property charged	Yarn, Waste cotton and Cloth Stocks for a value of not less than Rs.50.000 Millions

Fixed Assets:

· Land

· Leasehold Land

· Building

· Plant and Machinery

· Furniture and Fitting

· Office Equipment

· Computers Equipment

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.49.12
UK Pound	1	Rs.72.59
Euro	1	Rs.63.52

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		30

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.	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