MIRA INFORM REPORT

Report No. :	331171
Report Date :	08.07.2015

IDENTIFICATION DETAILS

Name :	MCC PTA INDIA CORP. PRIVATE LIMITED
Registered Office :	22, Camac Street, Block ‘C’, 4^th Floor, Kolkata – 700016, West Bengal
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	19.02.1997
Com. Reg. No.:	21-088796
Capital Investment / Paid-up Capital :	Rs. 7392.830 Million
CIN No.: [Company Identification No.]	U24299wb1997ptc088796
IEC No.:	0597045143
TAN No.: [Tax Deduction & Collection Account No.]	CALM03777E
PAN No.: [Permanent Account No.]	AAACM9169K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Purified Terephthalic Acid ('PTA').
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

C

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :	Sick Company
Payment Behaviour :	Slow and Delayed
Litigation :	Clear
Comments :	The subject company is declared as a sick unit by Board for Industrial and Financial Reconstruction. The management has register case (Case No. 3/2014) with Board for Industrial and Financial Reconstruction under sick industrial companies act 1985. The order on which for approval for rehabilitation proposal is pending. The company has incurred huge accumulated losses which has eroded net worth of the company. Business is active. Payment are reported to be slow. The company can be considered for business dealing on a fully secured trade terms condition.

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 – March 31, 2015

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
India	A1	A1

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

EXTERNAL AGENCY RATING

NOT AVAILABLE

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 31-03-2013.

LOCATIONS

Registered Office/ Head Office :	22, Camac Street, Block ‘C’, 4^th Floor, Kolkata – 700016, West Bengal, India
Tel. No.:	91-33-22836300/ 22836301-6305/ 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
Factory 1 :	Haldia, Mouza Alichak, J L # 128, District Midnapore – 721602, West Bengal, India
Tel. No.:	91-3244-275355/275572-73
Fax No.:	91-3244-275356/275574
Factory 2 :	Village and P.O. Bhuniaraichak, Via: Sutahata (Haldia), Purba Midnapore - 721635, West Bengal, India
Tel. No.:	91-3224-275572/ 73
Fax No.:	91-3224-275574

DIRECTORS

As on 11.07.2014

Name :

Manabu Chikumoto

Designation :

Managing director

Address :

Flat No. 2F, 1, Sunny Park, Kolkata – 700019, West Bengal, India

Date of Birth/Age :

26.06.1964

Date of Appointment :

12.07.2013

PAN No.:

ACKPC0012G

DIN No.:

06455779

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	Company/ LLP Status	Defaulting status
1	U24299WB1997PTC088796	MCC PTA INDIA CORP. PRIVATE LIMITED	Director	01-04-2015	01-02-2013	Active	NO

Name :

Takeshi Kawasaki

Designation :

Whole Time Director

Address :

Flat No. 2F, 1 Sunny Park, Kolkata – 700019, West Bengal, India

Date of Appointment :

11.07.2014

DIN No.:

06665800

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	U24299WB1997PTC088796	MCC PTA INDIA CORP. PRIVATE LIMITED	Whole-time director	11-07-2014	01-10-2013	-	Active	NO

Name :

Sajal Ghosh

Designation :

Whole-time director

Address :

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

Date of Birth/Age :

13.03.1959

Date of Appointment :

12.07.2013

PAN No.:

ADJPG7605H

DIN No.:

00223794

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	Company/ LLP Status	Defaulting status
1	U24299WB1997PTC088796	MCC PTA INDIA CORP. PRIVATE LIMITED	Whole-time director	12-07-2013	04-07-2012	Active	NO

Name :

Mr. Debi Prasad Patra

Designation :

Whole-time director

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 :

36 Years

Date of Appointment :

01.07.2013

PAN No.:

AGCPP3380Q

DIN No.:

00067269

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	U24299WB1997PTC088796	MCC PTA INDIA CORP. PRIVATE LIMITED	Whole-time director	01-07-2013	02-07-2003	-	Active	NO
2	U67120WB1893NPL000761	THE BENGAL CHAMBER OF COMMERCE AND INDUSTRY	Director	02-01-2005	02-01-2005	22-09-2010	Active	NO
3	U45400WB2007PTC115719	SHANGHRILA INFRASTRUCTURE CONSULTANCY PRIVATE LIMITED	Director	26-09-2008	11-05-2007	-	Strike off	NO
4	U45400WB2007PTC116039	ASIA PACIFIC INFRASTRUCTURE ENTERPRISES PRIVATE LIMITED	Director	24-05-2009	24-05-2007	-	Active	NO
5	U72200WB2007PTC117070	ASCENT INFOCON PRIVATE LIMITED	Director	30-01-2009	11-07-2007	-	Active	NO
6	U70101WB2007PTC118782	KALINGA INFRASTRUCTURE CONSULTANCY PRIVATE LIMITED	Director	18-09-2007	18-09-2007	31-12-2007	Active	NO
7	U22300WB2007PTC121254	SHANGHRILA MEDIA COMMUNICATIONS PRIVATE LIMITED	Director	29-12-2007	29-12-2007	31-12-2007	Strike off	NO
8	U45400WB2008PTC124845	ASCENT INFRASTRUCTURE CONSULTANCY PRIVATE LIMITED	Director	09-04-2008	09-04-2008	-	Strike off	NO
9	U30009WB1999PTC090277	XENOLITH TECHNOLOGIES PRIVATE LIMITED	Director	18-06-2008	18-06-2008	-	Active	NO
10	U40105WB2008PLC125220	INDIA POWER CORPORATION (HALDIA) LIMITED	Director	23-09-2009	06-03-2009	31-03-2014	Active	NO
11	U40101WB2003PLC097340	INDIA POWER CORPORATION LIMITED	Director	01-07-2010	06-03-2009	-	Amalgamated	NO
12	U40102WB2008PTC126593	ORBIS POWER VENTURE PRIVATE LIMITED	Director	23-09-2009	30-03-2009	-	Amalgamated	NO
13	L40105WB1919PLC003263	INDIA POWER CORPORATION LIMITED	Director	01-08-2010	29-01-2010	-	Active	NO
14	U70102WB2010PLC150192	SPD Constructions Limited	Director	04-06-2010	04-06-2010	-	Active	NO
15	U64202WB1995PLC075980	I-WIN ADVISORY SERVICES LIMITED	Director	29-09-2012	25-10-2011	04-03-2013	Active	NO
16	U65993OR1973SGC000585	INDUSTRIAL PROMOTION AND INVESTMENT CORPORATION OF ODISHA LIMITED	Nominee director	21-09-2013	21-09-2013	-	Active	NO

Name :

Nobuo Fukuda

Designation :

Director

Address :

9-4 Inokata 4 – Chome, Komae City, Tokyo – 2018251, Japan

Date of Birth/Age :

09.12.1958

Date of Appointment :

11.07.2014

DIN No.:

06851774

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	Company/ LLP Status	Defaulting status
1	U24299WB1997PTC088796	MCC PTA INDIA CORP. PRIVATE LIMITED	Director	11-07-2014	01-04-2014	Active	NO

Name :

Akihiro Iwasaki

Designation :

Director

Address :

99 Robertson Quay, # 10-14 Rivergate, Singapore – 238258,Singapore

Date of Birth/Age :

13.01.1974

Date of Appointment :

11.07.2014

DIN No.:

06793922

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	Company/ LLP Status	Defaulting status
1	U24299WB1997PTC088796	MCC PTA INDIA CORP. PRIVATE LIMITED	Director	11-07-2014	27-01-2014	Active	NO

Name :

Yoshio Ueminami

Designation :

Director

Address :

Midori Gaoka Cho, 3500-117, Yokkaichi MIE, Japan - 5100006

Date of Birth/Age :

18.01.1958

Date of Appointment :

12.07.2013

DIN No.:

05295966

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	Company/ LLP Status	Defaulting status
1	U24299WB1997PTC088796	MCC PTA INDIA CORP. PRIVATE LIMITED	Director	12-07-2013	05-07-2012	Active	NO

Name :

Fujio Samukawa

Designation :

Additional Director

Address :

2-25-7 Ohara Setagaya-ku, Tokyo - 1560041, Japan

Date of Appointment :

01.04.2015

DIN No.:

07129157

Name :

Masaya Nomamoto

Designation :

Additional director

Address :

Flat No. 2F, 1, Sunny Park, Kolkata - 700019, West Bengal, India

Date of Appointment :

01.04.2015

DIN No.:

07129162

Name :

Takumi Ota

Designation :

Additional director

Address :

Azad Hind Nagar, P.O. Haldia Township, Haldia Purba, Medinipur - 721607, West Bengal, India

Date of Appointment :

01.04.2015

DIN No.:

07129223

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 :	Mrs. Kapoor
Designation :	HR Executive
Name :	Akira Tada
Designation :	Executive Director (Projects)
Name :	Hiroaki Shimazu
Designation :	General Manager - Production
Name :	Takeshi Kawasaki
Designation :	Director - Marketing & Planning
Name :	Tomofumi Koyama
Designation :	Senior Manager - Project
Name :	Tomoyasu Inakazu
Designation :	Deputy General Manager - HPConstruction
Name :	Yoshitaka Nishida
Designation :	Deputy General Manager
Name :	Yusaku Magome
Designation :	Senior Manager - Project

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 11.07.2014

Names of Shareholders	No of Shares	Percentage of Holding
Mitsubishi Chemical Corporation, Japan	487926602	66.00
West Bengal Industrial Development Corporation Limited, India	36964137	5.00
Mitsubishi Corporation, Japan	73928273	10.00
Sojitz Corporation, Japan	59142618	8.00
Marubeni Corporation, Japan	44356964	6.00
Toyota Tsusho Corporation, Japan	36964137	5.00
Total	739282731	100.00

As on 11.07.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Government companies	5.00
Foreign holdings (Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	95.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Purified Terephthalic Acid ('PTA').

Products :

Item Code No. (ITC Code)	Product Description
29173600	Purified Terephthalic Acid

Brand Names :

--

Agencies Held :

--

Exports :

--

Imports :

--

Terms :

--

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	--
Name of the Person (Designation):	--
Contact Number:	--
Since how long known:	--
Maximum limit dealt:	--
Experience:	--
Remark	--

Customers :

Reference:	--
Name of the Person (Designation):	--
Contact Number:	--
Since how long known:	--
Maximum limit dealt:	--
Experience:	--
Remark	--

No. of Employees :

Not Available

Bankers :

Bank Name:	--
Branch:	--
Person Name (with Designation):	--
Contact Number:	--
Name of Account Holder:	--
Account Number:	--
Account Since (Date/ Year of A/c Opening):	--
Average Balance Maintained (Optional):	--
Credit Facilities Enjoyed (CC/OD/Term Loan):	--
Account Operation:	--
Remarks:	--

· State Bank of India, Corporate Accounts Group Branch, 34, J.L. Nehru Road, Kolkata - 700071, West Bengal, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
SHORT TERM BORROWINGS
Buyers credit from SBI	0.000	339.360
Total	0.000	339.360

Name :	S.R. Batliboi and Company LLP Chartered Accountants
Address :	22 Camac Street, Block ‘C’, 4^th Floor, Kolkatta - 700016, West Bengal, India
Tel. No.:	91-33-66153400
Fax No.:	91-33-22817750
Income-tax PAN of auditor or auditor's firm :	ACHFS9117R
Memberships :	--
Collaborators :	--
Holding company:	Mitsubishi Chemical Corporation, Japan
Ultimate holding company:	Mitsubishi Chemical Holdings Corporation, Japan
Related parties with whom transactions have taken place during the year Holding company:	Mitsubishi Chemical Corporation, Japan
Fellow Subsidiaries:	· Mitsubishi Chemical Engineering Corp. · Mitsubishi Chemical Singapore Pte Limited · MCC PTA Asia Pacific PTE Limited · Ryoka Systems Inc. · Dia Nitrix Company Limited · Dia Packaging Company Limited · MEC Techno Company Limited · Ningbo Mitsubishi Chemical Company Limited · Mitsubishi Rayon Company Limited

CAPITAL STRUCTURE

As on 11.07.2014

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

As on 31.03.2014

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
739283000	Equity Shares	Rs.10/- each	Rs. 7392.830 Millions

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	7392.830	7392.830	7392.830
(b) Reserves & Surplus	(19468.540)	(10154.090)	(2475.810)
(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)	(12075.710)	(2761.260)	4917.020
(3) Non-Current Liabilities
(a) long-term borrowings	5573.140	7041.680	11397.720
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	29.780	0.000
(d) long-term provisions	170.120	191.630	173.540
Total Non-current Liabilities (3)	5743.260	7263.090	11571.260
(4) Current Liabilities
(a) Short term borrowings	7318.480	4227.920	399.740
(b) Trade payables	28780.540	21938.320	16240.080
(c) Other current liabilities	4539.050	5587.660	2682.340
(d) Short-term provisions	8.590	4.480	6.870
Total Current Liabilities (4)	40646.660	31758.380	19329.030
TOTAL	34314.210	36260.210	35817.310
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	23214.760	24059.370	24590.910
(ii) Intangible Assets	450.940	482.210	512.750
(iii) Capital work-in-progress	203.140	268.090	50.070
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	1185.750	1059.990	1349.950
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	25054.590	25869.660	26503.680
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	5381.390	6150.580	3574.230
(c) Trade receivables	334.560	284.070	1282.990
(d) Cash and cash equivalents	2771.800	1180.430	1459.500
(e) Short-term loans and advances	767.930	2279.430	2481.480
(f) Other current assets	3.940	496.040	515.430
Total Current Assets	9259.620	10390.550	9313.630
TOTAL	34314.210	36260.210	35817.310

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	68500.840	52140.990	51583.170
		Other Income	145.130	117.550	729.130
		TOTAL (A)	68645.970	52258.540	52312.300
Less	EXPENSES
		Cost of Raw Materials Consumed	64333.100	49820.240	43507.560
		(Increase)/ Decrease in inventories of finished goods and work-in-progress	659.760	(629.420)	(82.920)
		Employees Benefits Expense	558.460	537.100	667.110
		Other Expenses	10003.400	7851.620	8650.330
		TOTAL (B)	75554.720	57579.540	52742.080
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(6908.750)	(5321.000)	(429.780)
Less	FINANCIAL EXPENSES (D)		327.730	337.500	393.930
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(7236.480)	(5658.500)	(823.710)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2077.970	1985.680	2338.770
	PROFIT BEFORE TAX (E-F) (G)		(9314.450)	(7644.180)	(3162.480)
Less	TAX (H)		0.000	34.100	(421.340)
	PROFIT AFTER TAX (G-H) (I)		(9314.450)	(7678.280)	(2741.140)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	2.100	0.000	9.990
	CIF VALUE OF IMPORTS		63862.570	51665.690	43370.260
	Earnings Per Share (Rs.)		(12.60)	(10.39)	(3.71)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	3337.870	5057.060	2283.980
Cash generated from operations	NA	NA	NA
Net Cash Flow from (used in) Operations	2704.700	(1419.850)	3283.540

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	(13.60)	(14.73)	(5.31)
Operating Profit Margin (PBDIT/Sales)	(%)	(10.09)	(10.21)	(0.83)
Return on Total Assets (PBT/Total Assets}	(%)	(27.31)	(21.24)	(8.84)
Return on Investment (ROI) (PBT/Networth)		0.77	2.77	(0.64)
Debt Equity Ratio (Total Debt/Networth)		(1.34)	(5.91)	2.86
Current Ratio (Current Asset/Current Liability)		0.23	0.33	0.48

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	7392.830	7392.830	7392.830
Reserves & Surplus	(2475.810)	(10154.090)	(19468.540)
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	4917.020	(2761.260)	(12075.710)
Long-term borrowings	11397.720	7041.680	5573.140
Short term borrowings	399.740	4227.920	7318.480
CURRENT MATURITIES OF LONG-TERM DEBTS	2283.980	5057.060	3337.870
Total borrowings	14081.440	16326.660	16229.490
Debt/Equity ratio	2.864	(5.913)	(1.344)

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	51583.170	52140.990	68500.840
		1.081	31.376

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	51583.170	52140.990	68500.840
Profit	(2741.140)	(7678.280)	(9314.450)
	(5.31%)	(14.73%)	(13.60%)

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	No
8	Designation of contact person	No
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	No
17	Details of sister concerns	No
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	Yes
29	Profitability for last three years	Yes
30	Major shareholders, if available	No
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	90248020	08/06/2007 *	2,500,000,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNTS GROUP BRANCH, 34, J.L. NEHRU ROAD, KOLKATA - 700071, WEST BENGAL, INDIA	A16373953

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG TERM BORROWINGS:
Foreign currency term loans from banks	5573.140	7041.680
SHORT TERM BORROWINGS:
Buyers credit form Citi bank	3663.000	1031.560
Buyers credit form standard chartered	3655.480	2857.000
Total	12891.620	10930.240

NOTE

LONG TERM BORROWINGS

It includes Japan Bank for International Cooperation Rs. 3630.220 million Plus The Bank of Tokyo - Mitsubishi UFJ Limited Rs. 1011.900 million Plus Sumitomo Mitsui Trust Bank, Limited. Rs. 91.580 million Plus Mitsubishi UFJ Trust And Banking Corporation Rs. 274.730 million Plus Mizuho Bank Limited Rs. 564.710 Million

SHORT TERM BORROWINGS:

It includes Buyer's credit from Citibank, N.A. (unsecured) Rs.3663.000 million Plus Buyer's credit from Standard Chartered (unsecured) Rs. 3655.480 million.

CORPORATE INFORMATION

The company is a private limited company domiciled in India and incorporated under the provisions of the Companies Act,1956. The Company is engaged in manufacturing and selling of Purified Terephthalic Acid (PTA).

THE FINANCIAL YEAR IN RETROSPECT

The Indian PTA industry, along with its global counterparts, continued to incur severe losses owing to the historically poor PTA PX margin, mainly on account of oversupply of PTA vis-a-vis undersupply of PX during the year under review. PTA production in India suffered adversely due to series of shutdowns in many PTA units. Inflation on the other hand, hovered around 10-11% and the resultant high cost of capital, exerted severe pressure on working capital, thereby negatively affecting the overall growth of the polyester industry. Though some specialized yarns, PET resins and polyester films makers performed relatively better, the overall situation remained dismal and quite a few major polyester makers were compelled to lower their operation rates or to shut down their operating lines. As much as 1.2 million MT per year polyester capacity were also added against an uncertain and inadequate demand in the downstream spinning and textile sectors, thereby making the overall situation very complex. Overall operation rate of the polyester industry could be realized to the extent of around 65% with a growth rate of only 9.8% over the previous year.

PTA producers across Asia continued their losing streaks and in a completely unbalanced demand supply scenario, failed to achieve sustainable prices for their product. China, which had been a significant importer, cut down on its imports of PTA due to substantial domestic capacity addition, resulting in other PTA producing nations resorting to selling their product at unsustainable and distressed prices in Asian market, including India. With no considerable PX capacity additions there was severe paucity of PX, leading to steep rise in PX price, making it the most profitable product in the entire polyester chain. PTA price though, could not catch up comparatively with the rise in PX price, owing to oversupply situation. Consequent to such imbalances, PTA - PX spread remained at a historical low-level, resulting in an average spread of below $ 80 per MT throughout the year under review, which was almost $100 per MT lower than the average spread recorded during the last 15 years. The Company’s performance was also severely affected consequent to continuous devaluation of Indian rupee against $, arising out of its PX and other raw materials imports. Consequent to the cumulative effect of all such constraints, the Company could not achieve the desired results and accordingly could generate a net revenue from its operations of Rs. 68500.840 million in the year under review, as against the corresponding amount of Rs 52140.990 million in the year ended March 31, 2013. The Company recorded net loss of Rs 9314.450 million in the year under report, as compared to the net loss of Rs 7678.280 million for the year ended March 31, 2013.

Inspite of such dismal scenario, it may be worthwhile to mention about the effect of the ongoing stabilization process of its line 2 PTA manufacturing facility, consequent to which the Company could record overall historic production of 1.05 million MTof PTA during the year.

The financial performance of the Company, unfortunately could not match its operational success as referred above, because of various external and market regulated factors like historical low PTA PX spread, persistent inflationary trends, unstable market conditions, currency devaluation, etc. The Company, while accepting its inability to control the external factors, has resolved to control and regulate the internal forces to maintain and improve its market competitiveness. Accordingly, the Company has since initiated several cost reduction and rationalization efforts at all levels and all across the Company. Further, the Company, in coordination with and technical support of its parent company, Mitsubishi Chemical Corporation (MCC) has also embarked on a journey for effective and optimum resource utilisation and process rationalization through various mechanical improvements / upgradation, which include, inter-alia, formulating and implementing plans for availing electricity through state owned power generation organisation, on grid power basis expectedly by February 2015 thereby replacing the existing power supply arrangement through DG installation and reducing substantially high cost furnace oil usage vis-a-vis rationalizing pollution factors, installing coal fired thermic fluid heaters in place of the existing oil fired thermic fluid heaters expected to be commissioned by December 2015 which would also reduce furnace oil consumption and operation cost, etc. The Company has also started availing technical assistance from MCC, for improving the paraxylene oxidation technology at both its manufacturing units through the licensed SNC Technology. To note further, the Company has also received from the Directorate of Industries, Government of West Bengal, incentives inter-alia, in the form of Sales Tax / VAT relief on finished goods, on the overall manufacturing capacity of the Company, which was earlier received only on line 1 manufacturing unit. In order to negate the impact of the cheap PTA import price, the Company alongwith other PTA producers have also approached the Government of India to impose Anti-dumping Duty on PTA imports from certain specified countries.

The Company, is a single product entity, being engaged in manufacture / sale of PTA. Its segmentwise information, have been indicated in the Annual Accounts and Notes thereto, relating to the year ended March 31, 2014.

The Company continued to produce quality PTA during the year under report, which is being commended as of international standard by its customers throughout the world. The Company was also the largest PTA merchant seller in India in the year.

The Company pursued its commitment and efforts for streamlining and implementing internal control measures / methods, in consonance with the changing market scenario thereby ensuring safeguarding of assets, conservation and rational utilization of resources and enhancing scope of their sustainability, perusal of compliance / corporate governance / risk management and counter measures thereof, practice and adherence of various internal control rules / regulations / policies / measures / guidelines / code as compatible to the group policies / ideologies and applicable enactments, throughout the period.

The Company all through the year under report, voluntarily continued its efforts and activities towards the socio-economic development of the people, improvement of the environment, etc, primarily in / around the plant area in Haldia as part of its Corporate Social Responsibility (CSR) initiatives. The activities so carried out in these respects include, building up a book bank and books distribution to the underprivileged students of the local schools in / around Haldia, program of sweater distribution amongst poor children of local school, conducting health check up of students of schools in / around their plant area in Haldia, conducting monthly medical health camps for the villagers in / around the plant area in Haldia, facilitating eye check-up and eye surgery for the disadvantaged people, especially children and elderly, in co-ordination with NGO, blood donation, support to concerned NGO in Kolkata for providing treatment to poor Thalaseamia patients, promoting tree plantation and various other green environment programs, encouraging women empowerment projects for the women under BPL category in Haldia through the concerned NGO in tailoring and health care activities, extending support to people affected by the floods in the villages of Purba Medinipur jointly with local administration etc. The Company pledges to zealously pursue its efforts, to promote, consolidate the strong bond and relationship between people, society, nature and to establish its identity as a responsible corporate citizen in the coming years.

The Company during the period pursued its efforts, for creating and preserving a pollution free environment and conservation of natural resources, improving standards of occupational health, implementing, adopting procedures for safe and accident free operation etc. During the said period, the Company renewed its Integrated Management System with respect to ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007. The Company also successfully implemented co-processing of hazardous wastes jointly with external entity, in order to facilitate better environment management and achieve effective cost reduction. The Company continued its efforts to promote safety awareness amongst all concerned, during plant operation and throughout the plant premises, inter-alia, through various types of on-site and specific trainings. The Company overall, continued its efforts for implementation, maintenance of the required facilities related with Health, Safety & Environment, which eventually would cater to the need for better and secured environment through and within the region.

Despite the severe and constrained market conditions, the PTA related industry is expected t have a positive outlook for 2014 - 15, based on the following major assessments / estimates:

- Expected additions of new PX capacities in Asia approximating 6 - 7 million metric tons annually, could result in a much healthier and sustainable PTA - PX spread on account of stable PX supply.

- Expected restructuring of Chinese PTA industry considering the changing PTA market scenario.

- Increase in domestic polyester capacities is expected to be approximately 1.4 million tons annually, consequently resulting in increase in demand for PTA.

- Expected growth boost to the Indian economy as a whole, subsequent to new government formation.

- Per capita consumption of Polyester in India is low compared with other countries in the world, thereby hinting at future growth prospects of the Indian Polyester industry.

- Expected strengthening of the position of the Company, as the largest merchant seller of PTA in the domestic market compared to the projected status of other PTA makers in the country.

The Company’s 2nd PTA manufacturing line, appears to have been stabilized and in-line with the on-going modification / upgradation process, is expected to operate steadily @ 100%. New PX capacities in Middle-East, are also expected to make the PX supply situation more steady and balanced. With such positives around, along with the expected available production of around 1.2 million MT of PTA at its disposal at the desired 100% operational level, availability of in-house technical skill, expertise, technical support of MCC, on-going cost rationalization process, sustainable and optimum utilisation of resources and the like, Directors expect that the Company would be able to effectively make a turn around and make significant contributions towards the growth of Indian Polyester industry in the future years.

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
Claims against the company not acknowledged as debt *	1497.140	2463.350
Bank guarantees	36.710	36.30
Total	1533.850	2499.650

NOTE:

* The claims against the company comprise:

(a) The company has received a claim of Rs. 69.38 million (31 March, 2013: Rs. 69.38 million) from Technology Development Board, Government Of India for payment of cess under the Research & Development Cess Act, 1986 , with respect to the payments made to Mitsubishi Heavy Industries Limited, Japan (M/s MHI). The company is of the opinion that such payments to M/s. MHI do not attract cess under the provisions of the said Act, which has been communicated to the concerned authority and therefore not provided for. The company has not received any further communication from the Technology Development Board.

(b) In respect of matter relating to claim of excise duty on deemed consideration arising from utilisation of advance licences received from specified buyers of PTA for sales under the deemed export category, the Central Excise Commissioner in January 2009 had adjudicated the matter against the company and confirmed the demands amounting to Rs. 306.970 million along with penalty of an equivalent amount for the entire period of April 2000 to November 2006 and interest as per section 11AB of the Central Excise Act, 1944.

Subsequently, in April 2009, the company filed appeals before the Central Excise and Service Tax Tribunal (CESTAT) against the Commissioner’s order. The case came up for hearing in October 2009 and the Hon’ble CESTAT dropped an amount of Rs.112.790 million on grounds of limitation and also dropped the original demands for interest and penalty leaving a total demand of Rs.194.200 million which the Hon’ble CESTAT also ordered the company to pre-deposit. The company did it in October 2009 by utilizing its Cenvat Account by Rs. 194.200 million. The company is awaiting the final disposal of the case by the Hon’ble CESTAT.

The company is of the view that the facts of the Supreme Court ruling in another case which was referred to by the Excise Department, are significantly different to its fact pattern and is thus, confident that this liability would not devolve on the company. The company has also obtained legal advice and opinion on the matter, and has not considered a provision necessary for these demands.

However, for the period commencing from December 2006, the company has charged excise duty on the price inclusive of such advance licence benefit and duly recovered the same from the ultimate customers.

(c) Other claims against the company with respect to demands raised by Central Excise, Service Tax, Sales Tax and Income Tax authorities not acknowledged as debts amount to Rs. 1233.560 million (31 March, 2013: Rs. 1427.880 million).

FIXED ASSETS

TANGIBLE ASSETS

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Office Equipment

· Other Equipments

· Vehicles

INTANGIBLE ASSETS

· Computer Software

· Licenses and Franchise

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. 63.37
UK Pound	1	Rs. 98.86
Euro	1	Rs. 69.97

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	MRI

SCORE & 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.