MIRA INFORM REPORT

Report Date :

03.09.2014

IDENTIFICATION DETAILS

Name :	ATC LIMITED (w.e.f. 05.01.2009)
Formerly Known as :	ASIA TOBACCO COMPANY LIMITED
Registered Office :	35, Rajaji Nagar, Hosur – 635126, Tamil Nadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	09.11.1973
Com. Reg. No.:	18-018100 (New) 006464 (Old)
Capital Investment / Paid-up Capital :	Rs. 32.219 Million
CIN No.: [Company Identification No.]	U16000TZ1973PLC018100 (New) U16000TN1973PLC006464 (Old)
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Cigarettes and Leather Products.
No. of Employees :	220 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 440000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. General financial position of the company is good. Trade relations are reported as fair. Business is active. Payment terms are reported to be usually correct. 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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

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.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Peter Louis
Designation :	Human Resources Manager
Contact No.:	91-9443268531
Date :	27.08.2014

LOCATIONS

Registered Office / Factory :	35, Rajaji Nagar, Hosur – 635126, Tamil Nadu, India
Tel. No.:	91-4344-420002 / 278888
Fax No.:	91-4344-276988 / 278888
E-Mail :	peterlouis@itc.in
Website :	www.itc.in

DIRECTORS

As on 27.09.2013

Name :

Mr. Sanjiv Puri

Designation :

Director

Address :

Ph-1, Favourite Chalet, 15 Dacista Katiyt, 1^st Cross, Ciooke Town, Bangalore - 560084, Karnataka, India

Date of Birth/Age :

18.06.1962

Date of Appointment :

15.07.2010

DIN No.:

00280529

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	U64202MH2003PLC254244	SITEL OPERATING CORPORATION INDIA LIMITED	Director	05/05/2006	24/04/2006	28/12/2009	Active	NO
2	U65991WB1996PLC077341	ITC INFOTECH INDIA LIMITED	Director	01/09/2009	14/05/2006	09/08/2013	Active	NO
3	U16000TZ1973PLC018100	ATC LIMITED	Director	15/07/2010	11/12/2009	-	Active	NO
4	U16003DL1992NPL085954	THE TOBACCO INSTITUTE OF INDIA.	Nominee director	27/09/2010	27/09/2010	-	Active	NO
5	U99999MH1994NPL076530	MEDIA RESEARCH USERS COUNCIL	Director	21/10/2010	21/10/2010	-	Active	NO

Name :

Mr. Sumitro Guha

Designation :

Director

Address :

Woodlands Syndicate, Flat No.8, 8/7 Alipore Road, Kolkata – 700027, West Bengal, India

Date of Birth/Age :

05.07.1961

Date of Appointment :

27.09.2012

DIN No.:

05352564

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	U16000TZ1973PLC018100	ATC LIMITED	Director	27/09/2012	16/08/2012	-	Active	NO
2	U85110KA1993PLC014278	ITC ESSENTRA LIMITED	Director	25/06/2014	28/03/2014	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Mayur Dhirajlal Gohil
Designation :	Manager
Address :	F1, Esplanade, 282, 100 Feet Road, Indira Nagar, Bangalore – 560038, Karnataka, India
Date of Appointment :	27.09.2012
PAN No.	ALDPG3428J

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2013

Names of Shareholders	No. of Equity Share Held
	Rs. 100 Fully paid	Rs. 100 – Rs. 70 Called and paid up	Total Number of Shares
Mr. K S Narayanan	30
Mr. B M Varma	30
Mr. N Kumar	6
Mr. N Sankar	18
Mrs. Parvathi Chettur	6
Mr. P C Sekhar	6
Mrs. Akila Vidyasankar	6
Mr. Chanderswamy	6
Mr. Rajesh Poddar	10
Mr. G Raja Sekhar	2
Mr. T N Lakshminarayanan	30	75
Maj Gen Aban Naidu	30
			255
ITC LIMITED GROUP
Russell Investments Limited	61350	88643	149993
Gold Flake Corporation Limited	55650	139125	194775
Divya Management Limited	1995	61000	62995
Cigarette Distributors
Mr. C M Syed	150
Mr. A Vijayakumar	90
Ms. V Kamala	75
Mr. A R Mani	150
Mr. Deivasigamony	300
Ms. C Bharathy Sekar	60		825
Total	120000	288843	408843

As on 27.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	99.74
Other top fifty shareholders	0.26
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cigarettes and Leather Products.

GENERAL INFORMATION

No. of Employees :

220 (Approximately)

Bankers :

Not Divulged

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWING
Terms of repayment	56.000	0.000
Total	56.000	0.000

Banking Relations :	---
Auditors :
Name :	S. Venkatram and Company Chartered Accountant
Address :	No. 218, TTK Road, Alwarpet, Chennai – 600018, Tamil Nadu, India
PAN No.:	AABFS8836R

CAPITAL STRUCTURE

As on 27.09.2013

Authorised Capital:

No. of Shares	Type	Value	Amount
20000	Preference Shares	Rs.100/- each	Rs. 2.000 Million
480000	Equity Shares	Rs.100/- each	Rs. 48.000 Million
	Total		Rs. 50.000 Million

Issued Capital :

No. of Shares	Type	Value	Amount
420000	Equity Shares	Rs.100/- each	Rs. 42.000 Million

Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
120000	Equity Shares	Rs.100/- each	Rs. 12.000 Million
288843	Equity Shares	Rs.70/- each	Rs. 20.219 Million
	Total		Rs. 32.219

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	32.219	32.216	32.215
(b) Reserves & Surplus	78.100	70.189	63.455
(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)	110.319	102.405	95.670
(3) Non-Current Liabilities
(a) long-term borrowings	56.000	0.000	6.111
(b) Deferred tax liabilities (Net)	6.557	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	7.446	6.260	0.000
Total Non-current Liabilities (3)	70.003	6.260	6.111
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	3.000
(b) Trade payables	0.000	1.299	0.078
(c) Other current liabilities	51.014	94.721	8.752
(d) Short-term provisions	1.599	1.171	1.770
Total Current Liabilities (4)	52.613	97.191	13.600
TOTAL	232.935	205.856	115.381
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	172.994	170.218	76.294
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	5.979	0.536	0.577
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.043	0.043	0.000
(c) Deferred tax assets (net)	0.000	0.576	3.359
(d) Long-term Loan and Advances	1.388	1.606	1.414
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	180.404	172.979	81.644
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	0.489	0.391	0.409
(c) Trade receivables	22.459	2.431	12.700
(d) Cash and cash equivalents	17.676	20.745	12.242
(e) Short-term loans and advances	11.907	9.310	8.386
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	52.531	32.877	33.737
TOTAL	232.935	205.856	115.381

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	218.071	195.169	176.492
		Other Income	1.575	1.484	0.757
		TOTAL (A)	219.646	196.653	177.249
Less	EXPENSES
		Other Manufacturing Expenses	0.000	0.000	41.263
		Employees benefits expense	106.515	109.176	103.854
		Other expenses	73.049	67.588	17.798
		TOTAL (B)	179.564	176.764	162.915
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		40.082	19.889	14.334
Less	FINANCIAL EXPENSES (D)		8.678	0.000	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		31.404	19.889	14.334
Less/ Add	DEPRECIATION/ AMORTISATION (F)		12.611	7.569	7.172
	PROFIT BEFORE TAX (E-F) (G)		18.793	12.320	7.162
Less	TAX (H)		10.889	5.587	3.929
	PROFIT AFTER TAX (G-H) (I)		7.904	6.733	3.233
	Earnings Per Share (Rs.)		24.53	20.90	10.43

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	3.60	3.42	1.82
Net Profit Margin (PBT/Sales)	(%)	8.62	6.31	4.06
Return on Total Assets (PBT/Total Assets}	(%)	8.06	5.98	6.20
Return on Investment (ROI) (PBT/Networth)		0.17	0.12	0.07
Debt Equity Ratio (Total Debt /Networth)		0.51	0.00	0.10
Current Ratio (Current Asset/Current Liability)		1.00	0.34	2.48

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	32.215	32.216	32.219
Reserves & Surplus	63.455	70.189	78.100
Net worth	95.670	102.405	110.319
long-term borrowings	6.111	0.000	56.000
Short term borrowings	3.000	0.000	0.000
Total borrowings	9.111	0.000	56.000
Debt/Equity ratio	0.095	0.000	0.508

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	176.492	195.169	218.071
		10.582	11.734

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	176.492	195.169	218.071
Profit	3.233	6.733	7.904
	1.83%	3.45%	3.62%

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	No
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	No
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	No

BACKGROUND

The Company is currently engaged in the manufacturer of Cigarettes and Leather products.

Mr. Mayur Dhirajlal Gohil is a B. Tech in Chemical Engineering and Post Graduate in Industrial Safety. HE has over 11 years of work experience. In the opinion of the Board, Mr, Mayur Dhirajlal Gohil is competent to shoulder the responsibilities proposed to be entrusted to him as the Manager of the company.

Mr. Mayur Dhirajlal Gohil has no pecuniary relationship directly or indirectly with the company other than the remuneration payable to him as Manager of the company.

Mr. Mayur Dhirajlal gohil is not related to any managerial personnel of the company.

The company incurred a Net Loss after tax during 2009-10 due to production slow down resorted to by the workmen at the Cigarette Factory and due to stoppage of manufacture at the said Factory for three month consequent and other Tobacco Products (Packaging and Labelling )Rules, 2008.

Normally in the Cigarette Factory operations has been resorted after prolonged negotiations by signing Long Term Agreement with the Trade Unions on 31^st May, 2010 covering a three year period from 1^st, 2010. This Agreement incorporates several productivity-linked measures and improved work practice.

Note:

Registered office of the company has been shifted from Guna Complex, 3^rd Floor 304/305, Anna Salai, Chennai – 600018, Tamil Nadu, India to the present address w.e.f . 22.03.2012

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10351932	04/04/2012	92,000,000.00	RUSSELL CREDIT LTD	VIRGINIA HOUSE, 37, J. L. NEHRU ROAD,, KOLKATA, West Bengal - 700071, INDIA	B38292496
2	90296777	28/07/1988	100,760.00	THE INVESTMENT TRUST OF INDIA LTD	117; MUNGARBAKKAM HIGH ROAD, MADRAS, Tamil Nadu - 600034, INDIA	-

* Date of charge modification

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Vehicle

· Office 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 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.60.61
UK Pound	1	Rs.100.48
Euro	1	Rs.79.56

INFORMATION DETAILS

Information Gathered by :	HET
Analysis Done by :	DIV
Report Prepared by :	ART

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	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

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.