MIRA INFORM REPORT

Report Date :

23.06.2011

IDENTIFICATION DETAILS

Name :	JAGANNATH TEXTILE COMPANY LIMITED
Formerly Known As :	JAGANNATH TEXTILE COMPANY PRIVATE LIMITED
Registered Office :	213, 23-1, East Periaswamy Road, R S Puram, Coimbatore-641002, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	11.05.1987
Com. Reg. No.:	001965
Capital Investment / Paid-up Capital :	Rs.297.150 Millions
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.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (28)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 2200000
Status :	Moderate
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

LOCATIONS

Registered Office :	23, 23-1, East Periaswamy Road, R S Puram, Coimbatore-641002, 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, Karuvalur Road, Karuvettipalayam, Palladam Taluk, Karumathampatti (Post), Coimbatore-641659, Tamilnadu, India
Tel. No.:	91-422-4304045 to 48

DIRECTORS

As On 29.09.2010

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. 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
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
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
Name :	Mr. Nambidar Ramakrishnan
Designation :	Director
Address :	East View, St Hildas School Road, Ootacamund, Nilgiri-643001, Tamilnadu, India
Date of Birth/Age :	28.02.1947
Date of Appointment :	24.06.2009

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2010

Names of Shareholders	No. of Shares
Deepak Kumar Tibrewal	11767
Usha Tibrewal	7043494
Gauri Shankar Tibrewal	10187
Hemalatha Tibrewal	100
Binod Kumar Tibrewal	6347
Abhishek Tibrewal	1000000
Anubhav Tibrewal	1000000
Master Anurag Tibrewal	1000000
Ramesh Kumar Tiberwal	4146747
Ramesh Kumar Tiberwal (HUF)	252000
Kiran Tibrewal	7222
K Ganga Rathna	6667
K Narendran	6111
V Jayanthi	6111
V Jayanthi Priya	100000
Kiran Devi Tibrewal W/O Deepak Tibrewal	85444
Maina Devi Tibrewal	1556
Raj Kumar Tibrewal	6247
K N Sreedharan	25000
Total	14715000

As On 29.09.2010

Category	Percentage
Directors or relatives of Directors	99.03
Other top fifty shareholders	0.97
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	520210
PC YArn	5509
Apparels And Madeups	6109 And 6302
Fabric	6109

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Commercial Branch, Coimbatore – 641018

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Fixed Loans –Term Loan
From Banks	1579.609	1381.666
Interest accured and due	13.858	13.027
Car Laon – HDFC Bank	1.326	0.000
Working Capital Loans
Cash Credit from Banks	383.935	578.266
Total	1978.728	1972.959
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Unsecured loans from Directors	19.750	19.750
Trade Deposits	51.847	41.353
Total	71.597	61.103

Banking Relations :	--
Auditors :
Name :	Thakker And Sanghani Chartered Accountant
Address :	No. 39, East, Ponnurangam Road, R S Puram, Coimbatore-641002, Tamilnadu, India
Associates/Subsidiaries :	NIL

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
17000000	Equity Shares	Rs.10/- each	Rs.170.000 Millions
15000000	6% Cumulative Redeemable 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
14715000	Equity Shares	Rs.10/- each	Rs.147.150 Millions
15000000	6% Cumulative Redeemable 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		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		297.150	297.150	297.150
2] Share Application Money		0.000	0.000	32.060
3] Reserves & Surplus		243.037	225.253	277.510
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		540.187	522.403	606.720
LOAN FUNDS
1] Secured Loans		1978.729	1972.959	1903.265
2] Unsecured Loans		71.597	61.103	88.195
TOTAL BORROWING		2050.326	2034.062	1991.460
DEFERRED TAX LIABILITIES		47.861	39.338	71.197
TOTAL		2638.374	2595.803	2669.377
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1857.434	1928.090	1994.649
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		29.054	37.182	41.650
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	250.303	158.886	154.994
	Sundry Debtors	264.532	218.595	204.659
	Cash & Bank Balances	9.267	11.899	10.443
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	319.056	300.176	318.938
Total Current Assets		843.158	689.556	689.034
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	72.977	59.005	55.201
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	18.835	0.715	1.605
Total Current Liabilities		91.812	59.720	56.806
Net Current Assets		751.346	629.836	632.228
MISCELLANEOUS EXPENSES		0.540	0.695	0.850
TOTAL		2638.374	2595.803	2669.377

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sale	2132.992	1505.135	2957.769
		Other Income	12.732	11.881	26.000
		TOTAL (A)	2145.724	1517.016	2983.769
Less	EXPENSES
		Raw Materials consumed	1362.179	939.240	966.625
		Purchase of Trading Goods	41.088	53.310	1408.126
		Stores Consumed	6.965	2.721	10.336
		Power And Fuels	233.608	150.126	129.698
		Personnel Cost	67.566	53.433	50.691
		Processing Charges	10.054	15.626	6.927
		Repairs And Maintenance	31.364	19.014	12.026
		Stock Adjustment	(25.846)	25.197	94.540
		Other Expenses	35.122	40.867	37.435
		Selling Expenses	83.138	53.973	59.437
		TOTAL (B)	1845.238	1353.507	2775.841
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		300.486	163.509	207.928
Less	FINANCIAL EXPENSES (D)		163.210	156.545	125.605
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		137.276	6.964	82.323
Less/ Add	DEPRECIATION/ AMORTISATION (F)		92.349	91.289	73.517
	PROFIT BEFORE TAX (E-F) (G)		44.927	(84.325)	8.806
Less	TAX (I)		0.385	76.998	(47.014)
	PROFIT AFTER TAX (G-I) (J)		45.312	(7.327)	55.820
Less	APPROPRIATIONS
		Provision for Taxation	8.340	0.715	1.605
		Provision for Deferred tax	8.523	--	--
		Transfer to General reserves	2.000	--	10.000
		Preference dividend for year ended March 31, 2008	9.000	--	--
		Corporate dividend tax thereon	1.495	--	--
	BALANCE CARRIED TO THE B/S		15.954	(8.042)	55.820
	Earnings Per Share (Rs.)		1.22	(4.27)	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.11	(0.48)	1.87
Net Profit Margin (PBT/Sales)	(%)	2.10	(5.60)	1.88
Return on Total Assets (PBT/Total Assets}	(%)	1.66	(3.22)	0.32
Return on Investment (ROI) (PBT/Networth)		0.08	(0.16)	(0.07)
Debt Equity Ratio (Total Liability/Networth)		3.96	5.01	4.42
Current Ratio (Current Asset/Current Liability)		9.18	11.54	12.12

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE :

The director in the report for the year ended 31.03.2009 had stated that though the year did not start on a promising note, as the year progressed into May and June, the situation was improving and they had further stated that there were signs to show that there will not be atleast cash loss and the directors has also assured that they are striving every nerve to foresee the position and take corrective steps well in advance so that for the year ended 31.03.2010, the company achieve atleast a cash profit, if not, a profit.

Consequent upon various steps taken by the directors, the working of the company has resulted is not only a cash profit but a net profit of Rs. 44.900 millions as has been stated above. Given the circumstances under which the industry had to operate, it should be stated that the results achieved are better than what was expected in the beginning of the year.

There has been absolutely no let up in the prices of raw material, be it cotton waste of virgin cotton, two main items of raw materials which the company consumes. However, the timely purchase of cotton and prompt payment has enabled the company to bring the raw material cost under control.

The power front continues to be the one of concern. During the year under review, not only there has been a power cut, but also there was total restriction on use of power during peak hours. All things put together the company had to suffer a power cut of more than 40%. The alternative sources of energy are proving to be too costly. In order to keep making cash profit, the company had to purchase power even at the increased cost, in order to maintain production. Unless and until a permanent solution is found in the state for the power situation, all the industries are likely to be put to similar type of difficulty as the textile industry is presently undergoing.

Form : 8

Corporate identity number of the company	U17111TZ1987PLC001965
Name of the company	JAGANNATH TEXTILE COMPANY LIMITED
Address of the registered office or of the principal place of business in India of the company	213,23-1, East Periaswamy Road, R S Puram, Coimbatore, Tamil Nadu -641002, India
This form is for	Modification of charge
Type of charge	Immovable property Book debts Movable property (not being pledge) Others
Particular of charge holder	State Bank Of India (Lead Bank) And Other 4 Banks, Commercial Branch, 1443, Trichy Road, Coimbatore- 641018, Tamil Nadu, India
Nature of instrument creating charge	Memorandum of Deposit for creation of charge (Form C.9)
Date of instrument Creating the charge	20/10/2010
Amount secured by the charge	Rs. 2354.500 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest : As stipulated by the Consortium Bankers Terms of repayment : Working Capital facilities repayable on demand. Term Loans repayment as stipulated by the individual consortium Banks Margin : As stipulated by Consortium Banks Extent and operation of the charge : First charge on the present and future Current Assets of the company and Second charge on the present and future Fixed Assets to secure the Working capital facilities of Rs.562.700 millions advanced by the Consortium Banks and First charge on the present and future Fixed Assets of the company and Second charge on present and future Current Assets to secure the Term Loans of Rs.1791.800 millions advanced by Consortium Banks Other : Total limits of Rs.2354.500 millions consist of State Bank of India (WCL 36.80&TL 78.70), Corporation Bank(WCL 7.55&TL32.45), State Bank of Hyderabad (WCL6.40 &TL41.55), State Bank of Patiala (WCL2.77&TL10.23) and South Indian Bank Limited (WCL2.75&TL16.25)
Short particulars of the property charged (Including location of the property)	Whole of Current Assets of the company,stocks of raw materials,stocks in process, semifinished and finished goods, Stores and spares not relating to Plant and Machinery (Consumable Stores and spares) Bills Receivable and Bookdebts and all other moveables both present and future All and Singular all the present and future machinery (excluding such movables as are permitted by the said Banks from time to time)but including documents of title to goods and other assets Immovable properties of the company admeasuring 46.02 1/4 acres at Kaduvettipalayam village, Palladam Taluk Immovable properties in Vilangkurichi village,Coimbatore Taluk SF No.473/2E(2.29 acres), immovable properties in Muduvelampatti village, Dharapuram Taluk GS No.203 (13.69 acres), G.S.No.204/4 (0.17 acres out of 2.41 acres), S No.209/2 (4.45 acres), S.No.209/1A(2.49 acres), S.No.209/1C (2.16 acres), S.No.204/3 (2.84 acres) and in Kannampalayam village, Palladam Tk. GS No.94/1 (4 acres 4 cents) Land admeasuring 3 acre 39 gonthas under RS No.27 Palki 9 No.4 and 3 acre 39 gonthas under RS No.27 Palki 3 of Village Billala of Gondal Taluk of Rajkot District Land admeasuring 4 acres=1-61-88 hectares of RS No.27 Palki 4 of Village Billala and Land admeasuring 4 acres=1-61-87 hectares of RS No.27 Palki 4 of Village Billala
Date of instrument modifying the charge	31/03/2010
Particulars of the present modification	Existing limit of Rs.2354.500 millions are ADDITIONALLY SECURED by way of Equitable mortgage on the immovable properties of the company in Vilangkurichi village Coimbatore Taluk, Muduvelampatti village Dharapuram Taluk, Kannampalayam village Palladam Tk. and Village Billala of Gondal Taluk of Rajkot District as fully detailed in Form C9 dated 20.10.2010

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Vehicles

· Furniture And Fittings

· Office Equipments

· Livestock

· Canteen Equipments

· Pattern Trade Mark And Designs

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.44.82
UK Pound	1	Rs.72.84
Euro	1	Rs.64.58

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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.