MIRA INFORM REPORT

 

 

Report Date :

02.04.2013

 

IDENTIFICATION DETAILS

 

Name :

MCC PTA INDIA CORP. PRIVATE LIMITED

 

 

Registered Office :

22, Camac Street, Block ‘C’,  4th Floor,  Kolkata – 700 016, West Bengal

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

19.02.1997

 

 

Com. Reg. No.:

21-088796

 

 

Capital Investment / Paid-up Capital :

Rs.7392.827 millions

 

 

CIN No.:

[Company Identification No.]

U24299wb1997ptc088796

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CALM03777E

 

 

PAN No.:

[Permanent Account No.]

AAACM9169K

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturing of Purified Terephthalic Acid.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (43)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 19668000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of Mitsubishi Chemical Holding Corporation, Japan.

 

It is an established company having satisfactory track record. There appear some accumulated losses recorded by the company. However, the company receives good support from its holding company. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments.

 

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 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

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

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long Term Rating: BBB+

Rating Explanation

Moderate degree of safety it carry moderate credit risk.

Date

August 14, 2012

 

 

Rating Agency Name

CRISIL

Rating

Short Term Rating: A2

Rating Explanation

High degree of safety it carry low credit risk.

Date

August 14, 2012

 

 

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 31-03-2012.

 

LOCATIONS

 

Registered Office/ Head Office :

22, Camac Street, Block ‘C’,  4th Floor,  Kolkata – 700 016, West Bengal, India

Tel. No.:

91-33-22836300-6305/ 22462490-94/ 97-99

Fax No.:

91-33-22808470/ 22462467/ 9138/ 22836299

E-Mail :

ida0014@cc.m-kagaku.co.jp

ida0007@cc.m-kagaku.co.jp

Websites :

www.mcpi.co.in

Area :

5000 sq. ft.

Location :

Owned (Commercial)

 

 

Factory 1 :

Haldia, Mouza Alichak, J L # 128, District Midnapore – 721 602, West Bengal

Tel. No.:

91-3244-275355/275572-73

Fax No.:

91-3244-275356/275574

Area :

200 acre

Location :

Leased (Industrial)

 

 

Factory 2 :

Village and P.O. Bhuniaraichak, Via: Sutahata (Haldia), Purba Midnapore - 721 635, West Bengal, India

Tel. No.:

91-3224-275572/ 73

Fax No.:

91-3224-275574

 

 

DIRECTORS

 

As on 04.07.2012

 

Name :

Mr. Eiichi Ono

Designation :

Chairman cum Managing Director

*Designated as Chairman Emeritus w.e.f. July 1, 2010 (Non-executive category)

Address :

6-30-15-101, Shimouma Setagaya- Ku, Tokyo- 154-0002, Japan

Date of Birth/Age :

15.11.1940

Date of Appointment :

12.06.2003

DIN No.:

00108820

 

 

Name :

Mr. Debi Prasad Patra

Designation :

Chairman cum Managing Director

*Designated as Executive Chairman w.e.f. July 1, 2010

Address :

CJ-332, Sector II, Salt Lake City, Kolkata – 700 091, West Bengal, India

Date of Birth/Age :

07.10.1955

Qualification :

MA in Political Science, IAS (Retired)

Experience :

35 Years

Date of Appointment :

02.07.2003

DIN No.:

00067269

 

 

Name :

Yukitatsu Suenobu

Designation :

Director

Address :

12, Ahoka Road, Flat No.204, Alipore, Kolkata – 700 027, West Bengal, India

Date of Birth/Age :

16.05.1959

Qualification :

Bachelor of Economics

Experience :

30 Years

Date of Appointment :

01.02.2013

DIN No.:

02978027

 

 

Name :

Mr. Naohisa Hashimoto

Designation :

Additional Director

Address :

99, Robertson Quay, #10-14, River Gate, Singapore 238258

Date of Birth/Age :

13.12.1966

Date of Appointment :

09.12.2011

DIN No.:

05114231

 

 

Name :

Yoshihiro Umeha

Designation :

Director

Address :

22-28, Shimotakaido, 4-Chome Suginami-Ku, Tokyo, Japan 1680073

Date of Birth/Age :

15.03.1955

Date of Appointment :

25.06.2008

DIN No.:

02192419

 

 

Name :

Mr. Akio Ueda

Designation :

Director

Address :

7-26-3-603, Funabashi, Setagaya-Ku, Tokyo, Japan 1560055

Date of Birth/Age :

23.06.1955

Date of Appointment :

06.04.2010

DIN No.:

02955901

 

 

Name :

Manabu Chikumoto

Designation :

Additional Director

Address :

3-68-2-1202 Arakawa, Arakawa-ku, Tokyo 1160002

Date of Birth/Age :

26.06.1964

Date of Appointment :

01.02.2013

DIN No.:

06455779

 

 

KEY EXECUTIVES

 

Name :

Sajal Ghosh

Designation :

Secretary

Address :

56, Bose Pukur Purba Para Road, Kolkata – 700 107, West Bengal, India

Date of Birth/Age :

13.03.1959

Date of Appointment :

12.05.1998

PAN No.:

ADJPG7605H

 

 

Name :

Katsuhiko Fukui

Designation :

Director - Production

 

 

Name :

Kazuhiko Inoue

Designation :

Additional Senior Manager - Process

 

 

Name :

Makato Tsuyuguchi

Designation :

Additional Senior Manager - Process

 

 

Name :

Norio Fujii

Designation :

Additional Senior Manager - Process

 

 

Name :

Satoshi Inoue

Designation :

General Manager – HP Construction

 

 

Name :

Susumu Mutajima

Designation :

Deputy General Manager - Mechanical

 

 

Name :

Takahiro Ochi

Designation :

Additional Senior Manager - Mechanical

 

 

Name :

Takuji Hirokawa

Designation :

Senior Vice President - Marketing and Raw Materials

 

 

Name :

Tamotsu Magome

Designation :

Deputy General Manager - Mechanical

 

 

Name :

Tomoyasu Inakazu

Designation :

Deputy General Manager – HP Construction

 

 

Name :

Yuji Yamamoto

Designation :

Vice President - HR and Administration

 

 

Employed for Part of the Year :

 

Name :

Naomitsu Koide

Designation :

General Manager - Mechanical

 

 

Name :

ShinjiYasunaga

Designation :

Executive Director

 

 

Name :

Tomaya Sakata

Designation :

Senior Vice President - Coordination and Support Services

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 04.07.2012

 

Names of Shareholders

 

No of Shares

 

Mitsubishi Chemical Corporation, Japan

 

487926602

West Bengal Industrial Development Corporation Limited, India

 

36964137

Mitsubishi Corporation, Japan

 

73928273

Sojitz Corporation, Japan

 

59142618

Marubeni Corporation, Japan

 

44356964

Toyota Tsusho Corporation, Japan

 

36964137

Total

 

739282731

 

As on 04.07.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Government Companies

 

5.00

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

95.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing of Purified Terephthalic Acid.

 

 

Products :

Item Code No. (ITC Code)

291736.00

Product Description

Purified Terephthalic Acid

 

PRODUCTION STATUS (AS ON 31.03.2012)

 

Particulars

Fifteen Months ended March 31, 2012

Quantity (MT)

a) Licensed Capacity

NA

b) Installed Capacity (per annum)

1370000

c) Actual Production

853864

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

·         State Bank of India, Corporate Accounts Group Branch, 34, J.L. Nehru Road, Kolkata – 700 071, West Bengal, India

·         Standard Chartered Bank, 19, Netaji Subhas Road, Kolkata – 700 001, West Bengal, India

·         Citi Bank, Kanak Building, 41, Chowringhee Road, Kolkata – 700 071, West Bengal, India

 

 

Facilities :

--

 

 

 

Banking Relations :

--

 

 

Auditors :

S.R. Batliboi and Company

Chartered Accountants

Address :

Kolkata, West Bengal, India

Tel No.:

91-33-66153400

Fax No.:

91-33-22817750

PAN No.:

AALFS0506L

 

 

Holding Company :

Mitsubishi Chemical Corporation, Japan

 

 

CAPITAL STRUCTURE

 

As on 04.07.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

1000000000

Equity Shares

Rs.10/- each

Rs.10000.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

739282731

Equity Shares

Rs.10/- each

Rs.7392.827 millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

(15 Months)

31.12.2010

(12 Months)

31.12.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

7392.827

7392.827

7392.827

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

2283.048

2283.048

2283.048

4] (Accumulated Losses)

(4758.864)

(2017.720)

(2250.815)

NETWORTH

4917.011

7658.155

7425.060

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

738.493

2] Unsecured Loans

14081.408

13043.439

14922.223

TOTAL BORROWING

14081.408

13043.439

15660.716

DEFERRED TAX LIABILITIES

0.000

421.340

132.280

 

 

 

 

TOTAL

18998.419

21122.934

23218.056

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

25105.288

24102.495

7854.156

Capital work-in-progress

85.988

721.424

19590.239

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
3574.233

4337.658

3279.483

 

Sundry Debtors
1282.991

1146.392

616.231

 

Cash & Bank Balances
1459.492

621.318

162.868

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
4309.429

3136.152

2725.865

Total Current Assets
10626.145

9241.520

6784.447

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
16306.211

12250.798

10603.115

 

Other Current Liabilities
330.018

561.173

300.581

 

Provisions
182.773

130.534

107.090

Total Current Liabilities
16819.002

12942.505

11010.786

Net Current Assets
(6192.857)

(3700.985)

(4226.339)

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

18998.419

21122.934

23218.056

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

(15 Months)

31.12.2010

(12 Months)

31.12.2009

 

SALES

 

 

 

 

 

Income

51527.820

28486.920

17570.192

 

 

Other Income

784.480

641.410

487.769

 

 

TOTAL                                     (A)

52312.300

29128.330

18057.961

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Manufacturing and other expenses

52742.080

26651.260

15862.319

 

 

TOTAL                                     (B)

52742.080

26651.260

15862.319

 

 

 

 

 

Less

PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

(429.780)

2477.070

2195.642

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

393.930

359.330

210.762

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                               (E)

(823.710)

2117.740

1984.880

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

2338.770

1595.590

769.823

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX (E-F)                  (G)

(3162.480)

522.150

1215.057

 

 

 

 

 

Less

TAX                                                                  (H)

(421.340)

289.060

134.239

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX (G-H)                   (I)

(2741.140)

233.090

1080.818

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(2017.720)

(2250.810)

(3896.359)

 

 

 

 

 

Less

Adjustment on Adoption of Companies Accounting Standard (Amendment) Rules, 2009

--

--

564.726

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(4758.860)

(2017.720)

(2250.815)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Income from Services

9.990

3.901

2.552

 

TOTAL EARNINGS

9.990

3.901

2.552

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

41837.623

22222.972

14147.734

 

 

Capital Goods

216.950

303.690

48.550

 

 

Capital Goods for Project

0.000

6.342

434.512

 

 

Stores & Spares

1315.688

699.948

259.499

 

TOTAL IMPORTS

43370.261

23232.952

14890.295

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

(3.71)

0.32

1.46

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

(15 Months)

31.12.2010

(12 Months)

31.12.2009

PAT / Total Income

(%)
(5.24)

0.80

5.99

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
(6.14)

1.83

6.92

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
(8.85)

1.57

8.30

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
(0.64)

0.07

0.16

 

 
 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 
2.86

1.70

2.11

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
0.63

0.71

0.62

 

 

LOCAL AGENCY FURTHER INFORMATION

 

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

Yes

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

 


Unsecured Loans

31.03.2012

(Rs. in Millions)

31.12.2010

(Rs. in Millions)

Rupee term loans banks unsecured

13681.669

13043.439

Working capital loans banks unsecured

399.739

0.000

Total

14081.408

13043.439

 

Note: All Unsecured Loans are guaranteed by Mitsubishi Chemical Corporation, Japan, the holding company.

 

FINANCIAL YEAR

 

The Board of Directors, in order to facilitate maintenance of accounting, financial and operational record / result, in line with and alignment of uniform / comparable financial period with that of the Holding Company, Mitsubishi Chemical Corporation along with its other associates, has resolved to adopt April-March as the basis of the financial year of the Company. Accordingly the Company’s financial year has been considered for a period of fifteen months, commencing from January 1, 2011 till March 31, 2012.

 

THE FINANCIAL YEAR IN RETROSPECT

 

The period witnessed acute volatility in and across the domestic polyester market. It though, began well for the Indian polyester industries, with healthy margins across the chain. With cotton price hovering in the range of Rs.170 per kg in the first quarter of 2011, polyester yarn and fibre prices also recorded healthy trends. The sudden fall in the cotton prices from April 2011 by more than 50% to Rs.85 per kg in July

2011 however, turned out to be too much for the industry to absorb. As the corporates suffered huge inventory losses all across, demand became very sluggish in and around April - May 2011. Some recovery was there during June - September 2011 but again in October 2011 the market collapsed owing to sharp decline in cotton and PTA prices. Besides, the combined effect of high interest rate, high inflation, volatile rupee exchange rate and other unfavourable macro economic factors, forced the overall market and investment sentiments to a very low level, throughout the period. Consequently, the polyester industry in India recorded almost no growth in the year 2011, first ever in the last decade.

 

PTA business, in tandem with the above market scenario, also had a bumpy ride in India. From a healthy PTA-PX spread of over US$350 per metric ton in the first quarter of 2011, the spread witnessed drastic reduction to less than US$170 per metric ton in May 2011 and eventually, to less than US$100 per metric ton in November 2011. PTA price hovering in the level of US$1500 per metric ton (CFR China) in March 2011, accordingly, dropped down to US$1179 in July 2011. Although PTA price registered some recovery during August - September 2011, it came down sharply to the level of US$1075 in November 2011. The drop in Paraxylene (PX) prices on the other hand, was not so significant, resulting thereby severe pressure on PTA margins. PTA business though started on an optimistic note, eventually concluded the period on a low key and retarded manner. The Company’s performances, in this constrained, severe environment and owing to its persistent stabilization problems relating to line 2, got seriously affected and the financial result generated for the period fell well short of expectations. The Company could generate net sales revenue of Rs.51527.820 millions during the period as against the corresponding amount of Rs.28486.920 millions in 2010. The Company registered net loss of Rs.2741.140 millions in the fifteen months period ended March 31, 2012, as compared to the profit after tax of Rs.233.090 millions in 2010.

 

The Company’s abysmally low financial performance during the period was owing to a combination of several deterrent factors like drastic fall in PTA-PX spread, sluggish market trend, high inflation, volatile Rupee exchange rate, unstable operation pertaining to line 2 PTA manufacturing facility etc. The Company has accordingly, initiated the process of cost rationalisation at all levels and optimum utilisation of resources including implementing requisite mechanical improvements / upgradation, in order to obviate the cumulative impact of the negative economic factors alongwith the accumulated losses and consequently to achieve economic performance and to strengthen the possibility of survival vis-à-vis consolidation in the following years. In this perspective and in order to negate the effect of high cost and uncertain supply of Fuel Oil, the Company interalia, is considering to implement 2 X 20 MW coal based captive power plant in phases, within the existing factory premises in Haldia. All required assessments and evaluations are being made in this respect, in coordination with and support of the Holding Company, Mitsubishi Chemical Corporation.

 

The Company is a single product entity, being engaged in manufacture / sale of PTA. Its segment-wise information as required, have been disclosed in the Annual Accounts and Notes thereto, relating to the period ended March 31, 2012.

 

The quality of PTA produced by the Company, continued to be regarded as of international standard by its customers throughout the world, during the period.

 

The Company, in pursuance of its commitment for consolidation and strengthening of internal control measures / methods, ensuring safeguarding of assets, conservation and rational utilization of resources, perseverance of sustainable development, perusal of compliance / corporate governance etc., continued its efforts and endeavors for practice and adherence of various internal control rules / regulations / policies / measures / guidelines / code, as compatible to the group policies / ideologies, all through the concerned period.

 

The Company in pursuance of its commitment towards Corporate Social Responsibility (CSR) carried out its endeavors throughout the period. Amongst the activities so carried out, mention may be made regarding the program of book distribution to the underprivileged students of the local schools in / around Haldia, donation of computers to a school near the plant area in Haldia, development of laboratory facility in a school near the plant area, organizing industry - student meet and imparting 5S, safety training to the participants, conducting medical health camps on monthly basis for the local villagers in / around the plant area in Haldia, donating ambulance for the local villagers under BPL category through certain NGO, facilitating eye check-up and eye surgery for the underprivileged persons around the plant area through certain NGO, promoting tree plantation and green environment programs, distribution of blankets, sweaters amongst the needy persons in the adjoining areas of the plant, promoting women empowerment projects for the local women under BPL category in Haldia through the concerned NGO, extending support to local outfits / organisations for various sports, cultural activities etc. The Company in the like manner would continue its efforts to promote, reaffirm the strong bond and relationship between people, society, nature and accordingly, to consolidate its identity as a responsible corporate citizen in the coming years.

 

The Company continued its efforts during the period, for preserving pollution free environment and conservation of natural resources, improving standards of occupational health, implementing, adopting procedures for safe and accident free operation etc. The Company during the said period continued with Integrated Management System with respect to ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007. The Company has also taken initiatives for alternate use of hazardous wastes, with a view to achieve better environment management and effect consequential cost reduction. The Company further, is pursuing its efforts to form a green view around plant, by adopting environment pollution attenuation trees and periodic maintenance of the same. The Company also continued its pursuance with various local / state authorities, organizations, forums etc. for implementation, maintenance of the required infrastructural facilities related with Health, Safety & Environment, which would cater to the need for better and secured environment through and within the region.

 

The Directors feel that polyester industry in the years ahead, would be governed by the suppliability of PX. With severe shortage of PX worldwide and huge capacities of PTA coming up in China, PTA margin is expected to be under severe pressure in 2012. PTA producers could face the heat both from the PX manufacturers and resistance from the downstream as well, to absorb such PX price aggression. The domestic situation however, could expected to be different, as the demand for PTA has outpaced the supplies for the last few years and India is absorbing PTA from abroad as well. With new polyester capacities of around 0.8 million metric ton expected to be online without any matching new PTA capacities coming up in India in 2012, the demand supply balance in India is expected to remain uneven. The concerning issue however, would be the PTA-PX spread. With the improved operation rate of line 2 and stable operating condition of line 1 PTA manufacturing facilities of the Company, availability of in-house technical skill, back-up technical support / expertise of MCC, quest for implementing / availing economic and sustainable alternate energy, on-going cost rationalization and optimum resource utilisation processes etc., the Directors feel that the Company would be able to meet the impending challenges and contribute sufficiently towards the growth of polyester industry in India by supplying almost 1 million metric ton of PTA in the coming years.

 

FIXED ASSETS

Tangible Assets

·         Leasehold Land

·         Buildings 

·         Plant and Machinery

·         Furniture Fixture and Office Equipments

·         Vehicles

 

Intangible Assets

·         PTA License Fee

·         Computer Software

 

 

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.54.39

UK Pound

1

Rs.82.32

Euro

1

Rs.69.54

 

 

INFORMATION DETAILS

 

Report Prepared by :

SMN 

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

4

--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

 

43

 

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.