MIRA INFORM REPORT

Report Date :

3^rd November, 2006

IDENTIFICATION DETAILS

Correct Name :	AMBATTUR CLOTHING LIMITED
Registered Office :	86/ E 2, Ambattur Industrial Estate, Ambattur, Chennai – 600 058, Tamilnadu, India
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	20.02.1995
Com. Reg. No.:	18-34577
CIN No.: [Company Identification No.]	U93090TN1996PLC034577
TAN No.: [Tax Deduction & Collection Account No.]	CHEA07829D
PAN No.: [Permanent Account No.]	AAACA4127D
Legal Form :	It is a closely held public limited liability company
Line of Business :	Manufacturers and Exporters of men’s shirts, ladies blouse, men’s trousers for exports and other ready made garments.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 9750000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company having fine track. Financial position is good. Payments are correct and as per commitments. The company is doing well. Fundamentals are strong and healthy. Trade relations are fair. The company can be considered good for any business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	86/E2, Ambattur Industrial Estate, Ambattur, Chennai-600058, Tamilnadu, India
Tel. No.:	91-44-2635 7811/13/26357538/26241368/ 26247608/26252373/26252362/26257150
Fax No.:	91-44-2625 7150
E-Mail :	accin@giasmdo1.vsnl.net.in axim@mepz.ambattur.com
Website :	http://www.ambattur.com
Corporate Office :	New SP/8, Ambattur Industrial Estate, Chennai – 600 058, Tamil Nadu, India
Factory 1 :	86 / E-2, Ambattur Industrial Estate, Chennai – 600 058, Tamil Nadu, India
Factory 2	D / 16, Ambattur Industrial Estate, Chennai – 600 058, Tamil Nadu, India
Area:	4000 sq.fts
Location:	Owned
Factory 3	D / 26, Ambattur Industrial Estate, Chennai – 600 058, Tamil Nadu, India
Area:	4000 sq.ft
Location:	Owend
Factory 4	69 / B, Ambattur Industrial Estate, Chennai – 600 058, Tamil Nadu, India
Area:	7500 sq.fts
Location:	Owned
Factory 5	B – 15, Ambattur Industrial Estate, Chennai – 600 058, Tamil Nadu, India
Area:	5000 sq.fts
Location:	Owned
Factory 6	B-9, Ambattur Industrial Estate, Chennai – 600 058, Tamil Nadu, India
Area:	6000 sq.ft
Location:	Owned
Factory 7	C – 8, Ambattur Industrial Estate, Chennai – 600 058, Tamil Nadu, India
Area::	3000 sq.fts
Location:	Owned
Factory 8	SP 53, Ambattur Industrial Estate, Chennai – 600 058, Tamil Nadu, India
Area:	10000 sq.fts
Location:	Owned
Factory 9	SP 10/8, Ambattur Industrial Estate, Chennai – 600 058, Tamil Nadu, India
Area:	10000 sq.fts
Location:	Owned
Factory 10	C – 10, Ambattur Industrial Estate, Chennai – 600 058, Tamil Nadu, India
Factory 11	D / 20, Ambattur Industrial Estate, Chennai – 600 058, Tamil Nadu, India
Factory 12	SP 76, Ambattur Industrial Estate, Chennai – 600 058, Tamil Nadu, India
Factory 13	B 10, Ambattur Industrial Estate, Chennai – 600 058, Tamil Nadu, India
Factory 14	Unit 1,2,3,4 SDF-4, 3^rd Main Road, MEPZ, Tambaram, Chennai – 600 045, Tamilnadu, India
Factory 15	New SP/8, Ambattur Industrial Estate, Chennai – 600 058, Tamil Nadu, India
Factory 16	69-B, Sidco Industrial Estate, Chennai – 600 096, Tamilnadu, India
Factory 17	D 15, Ambattur Industrial Estate, Chennai – 600 058, Tamil Nadu, India
Factory 18	A 8, Kadapperi Village, MEPZ, Tambaram, Chennai – 600 045, Tamilnadu, India
Factory 19	C 2, 3^rd Main Road, MEPZ, Tambaram, Chennai – 600 045, Tamilnadu, India
Branches:	v 10 Cathedral Road, Chennai – 600 086, Tamilnadu v 743 Purasawakkam High Road, Kilpauk, Chennai – 600 010, Tamilnadu v 769 Anna Salai, Chennai – 600 002, Tamilnadu v 12 ABM Avenue Crescent Street, Raja Annamalaipuram, Chennai – 600 028, Tamilnadu v 2 LB Road, Adyar, Chennai – 600 020, Tamilnadu v 2178/4, 12^th Main Road, Anna Nagar, Chennai – 600 040, Tamilnadu. v 10/8, 3^rd Main Road, Ambattur, Chennai – 600 058, Tamilnadu v D26 2^nd Main Road, Ambattur, Chennai – 600 058, Tamilnadu
Showroom:	743, Poonamallee High Road, Kilpauk – 10, Materials Centres SP 76, Chennai – 600 058, Tamil Nadu, India
Material Management Centre :	SP 76, Ambattur Industrial Estate, Chennai – 600 058, Tamil Nadu, India
Welfare Centre :	SP 24, Ambattur Industrial Estate, Chennai – 600 058, Tamil Nadu, India

DIRECTORS

Name	Mr. Vijay M. Mahtaney
Designation	Chairman and Managing Director
Date of Birth	02.02.1955
Address	19, Adyar Club Gate Road, Rayapuram, Chennai – 600 028, Tamil Nadu, India
Date of Appointment	09.02.1995
Name	Mr. Koshy V. Mahtaney (NRI)
Designation	Director
Date of Birth	15.08.1955
Address	19, Adyar Club Gate Road, Rayapuram, Chennai – 600 028, Tamil Nadu, India
Date of Appointment	09.02.1995
Name	Mr. Amit V Mahtaney
Designation	Director
Date of Birth	28.06.1982
Address :	19, Adyar Club Gate Road, Rayapuram, Chennai – 600 028, Tamil Nadu, India
Date of Appointment	09.07.2003
Name	Mr. Rajendra Mudaliar
Designation	Director
Date of Birth	18.01.1954
Address	10, Kanagasirnagar, Cathedral Road, Chennai – 600 086, Tamil Nadu, India

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Directors & Relatives		98.88
Bodies Corporate		00.02
Top 50		00.16
Foreign Holdings		00.94
Mr. Vijay M. Mahtaney	2490361
Mr. Rajendra Mudaliar	2625
Mr. Koshy V. Mahtaney	963535
Tusker Travels Private Limited	578
Mr. Amit V. Mahtaney	339966
Mrs. Sangeetha Rajendra	250
Mrs. Veena C Shah	2500
Ms. Anila Berwani	36100
Mr. V K Madhu	760
Madras Garments Private Limited	125

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of men’s shirts, ladies blouse, men’s trousers for exports and other ready made garments.

Products :

Product Description	Item Code No. (ITC Code)
Men’s Shirts	6205.20
Ladies Blouse	6206.30
Men’s Trousers	6203.42

GENERAL INFORMATION

No. of Employees :

8000

Bankers :

¯ State Bank of India

SIDCO Branch, Ambattur, Chennai – 600 058, Tamil Nadu, India

¯ HSBC Bank Limited

Facilities :

Secured Loan

(Rs. in millions)

	2005
From Bank
-- Export Packing Credit	538.663
-- Term Loan	103.000
From Financial Institutions
-- Rupee Term Loan	0.000
Total	641.663

Banking Relations :	Good
Auditors :	Price Waterhouse and Company Chartered Accountants 610 Anna Salai, Chennai – 600 006, Tamil Nadu, India
Subsidiaries :	v Ambind Private Limited v Ambattur Inc. USA v Ambattur Apparels Private limited v Ambattur Constructions Limited v Ambattur Developers Private Limited
Joint Ventures :	1] Ambattur Clothing International W.L.L., Bahrain 2] Ambattur Washworks Private Limited 3] Ceebros Developers

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10 each	50.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3836800	Equity Shares	Rs.10 each	38.368 million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004	31.03.2003
SHAREHOLDERS FUNDS
1] Share Capital		38.368	38.368	38.368
2] Reserves & Surplus		2422.861	2132.120	1692.449
NETWORTH		2461.229	2170.488	1730.817
LOAN FUNDS
1] Secured Loans		614.663	369.929	225.168
2] Unsecured Loans		0.000	0.000	22.812
TOTAL BORROWING		614.663	369.929	247.980
DEFERRED TAX LIABILITIES		49.631	42.220	54.499
TOTAL		3125.523	2582.637	2033.296
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1102.450	747.690	619.471
Capital work-in-progress		104.011	26.986	30.408
INVESTMENT		987.309	947.257	378.434
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	633.721	499.314	451.015
	Sundry Debtors	281.204	352.991	509.458
	Cash & Bank Balances	91.205	89.550	186.973
	Other Current Assets	33.583	17.360	19.520
	Loans & Advances	168.678	92.061	53.679
Total Current Assets		1208.391	1051.276	1220.645
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	238.497	184.341	185.712
	Provisions	11.141	6.231	29.950
Total Current Liabilities		249.638	190.572	215.662
Net Current Assets		958.753	860.704	1004.983
TOTAL		3125.523	2582.637	2033.296

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Sales Turnover [including other income]	4222.046	3851.101	3690.901
Profit/(Loss) Before Tax	344.607	485.892	455.452
Provision for Taxation	53.866	46.221	65.752
Profit/(Loss) After Tax	290.741	439.671	389.700
Export Value	3770.401	2820.865	NA
Import Value	2339.149	1842.740	NA
Total Expenditure	3877.439	3365.209	3235.449

KEY RATIOS

PARTICULARS		31.03.2005	31.03.2004	31.03.2003
PAT / Total Income	(%)	6.88	11.41	10.56
Net Profit Margin (PBT/Sales)	(%)	8.16	12.61	12.34
Return on Total Assets (PBT/Total Assets}	(%)	10.13	27.01	24.75
Return on Investment (ROI) (PBT/Networth)		0.14	0.22	0.26
Debt Equity Ratio (Total Liability/Networth)		1.37	0.09	0.12
Current Ratio (Current Asset/Current Liability)		4.84	5.51	5.66

LOCAL AGENCY FURTHER INFORMATION

Performance of Review

Directors are pleased to report that this year company has achieved a turnover of Rs. 4070.200 millions registering a growth of 13% as against Rs. 3611.900 millions in the previous year. However, profit before tax increased by 29% to Rs. 344.600 millions as against Rs. 485.900 millions in the previous year and profit after tax decreased by 34% from Rs. 439.700 millions in the previous year to Rs. 290.700 millions in the current year.

Outlook for The Current Year

After phasing out of quotas from 1^st January 2005, many buyers are looking at India for their sourcing of apparels. However, with globalization, the competition will increase further and margins are likely to remain under pressure. Company will continue to focus in improving operating efficiencies / value added activities and managing costs.

Subsidiary Companies

Ambattur Developers Private Limited:

During the year, company has made an investment of Rs. 279.100 millions in the equity capital of Ambattur Developers Private Limited and subsidiary company has earned an income of Rs. 1.750 millions and net loss of Rs. 0.014 millions during the year.

Aambind Private Limited:

Subsidiary company has achieved a turnover of Rs. 4.411 millions during the year as against Rs. 5.145 millions in the previous year and a net profit of Rs. 0.795 millions during the year as against net profit of Rs. 0.494 millions during the previous year.

Ambattur Inc.:

Subsidiary company has earned an income of Rs. US $ 200,850 during the year as against US $ 84,922 in the previous year. The net loss for the year is US $ 20,860 as against net profit of US $ 4388 during the previous year.

Ambattur Apparels Private Limited:

No activities have been carried out during the year.

Ambattur Constructions Limited:

Subsidiary company has earned an income of Rs. 50.351 millions during the year as against Rs. 22.049 millions in the previous year and a net profit is Rs. 23.679 millions as against net profit of Rs. 5.881 millions during the previous year.

Joint Venture:

Ambattur Clothing International W.L.L.:

Ambattur Clothing International W.L.L., a joint venture company set up in Bahrain has achieved a turnover of BD 17.04 million during the year as against BD 11.00 million in the previous year. Net Profit has gone up to BD 1.39 million in the current year as against net Profit of BD 1.53 million during the previous year.

FIXED ASSETS:

v Land

v Building

v Plant and Machinery

v Furniture and Fixtures

v Office Equipment

v Vehicle

It is in trade terms with:

î C M Enterprises

î Raghavendra Constructions and Investments

î Sujata Apparels

î S M Garments

î Viju Apparels

î V Mahtaney Exports

î Koshu Exports

î Southern Clothing Private Limied

î Tusker Travels Private Limited

î Ambattur Finance Limited

INDUSTRY:

Indian textile industry, the country’s biggest employer after agriculture, is also one of the world’s largest with an estimated cloth output of 31.5 bn m². Textiles has a 20% weight in India’s Index of Industrial Production and contributes over one quarter to total exports. Cotton farming, weaving and the garment sector are highly decentralised and millions of farmers and weavers constitute politically important groups. The policy to promote polyester consumption and free cotton for exports is a new one. There is therefore a significant shift in fibre consumption pattern driven mainly by price. Other policy changes like removal of soaps to SSIs and making fabric dutiable, also indicate a move to reduce decentralisation. The obvious benefits would be from greater value addition in exports and ease of administering levies.

HISTORY:

The company was incorporated on 9^th February 1995 at Chennai in Tamil Nadu having Company Registration Number 34577.

Subject was a partnership firm since 1983, with Head Office at Coimbatore and Manufacturing units at Ambattur Industrial Estate, Chennai – 600 058. There were seven partners with the following shareholding since 1983:

Mr. M. Vijay Mahtaney Rs. 5.100 millions

Mrs. Koshu V, Mahtaney Rs. 4.350 millions

Mr. Rajendra Mudaliar Rs. 0.450 millions

Mrs. Sangeeta Rajendran Rs. 0.025 millions

Mrs. Susheela Sivaprakasan Rs. 0.025 millions

Mrs. Veena C. Shah Rs. 0.025 millions

Dr. R. B. Aiyer Rs. 0.025 millions

Total Rs. 10.000 millions

In order to improve the operations, the partners (By an Agreement dated 15.12.1954) formed a Private Limited Company at Coimbatore appointing the first three Partners as Directors and the others became shareholders and the Private Limited company tookover the Assets & Liabilities of the Partnership Firm with effect from 09.02.1995 (Company No. 5780) at Coimbatore, the company Amalgamated its sister concerns 1) Trends Garments Limited, 2) Patch Garments (Private) Limited and 3) Hygrodyn Limited duly approved by the Chennai High Court in 1998. They issued shares totalling to 1,831,800 shares to the shareholders of these companies with no payments being received in cash.

Subject is a private limited liability company and was launched in 1994. It has been promoted by the parent company Ambattur Clothing Company. Subject is the first producer of wrinkle free cotton pants in India during 1996 and 'Colorplus’ brand is more popular for wrinkle free cotton pants all over India. Subject recently launch a line of soft jeans for women in the country. Subject have its own factory at Ambattur in Chennai and having 4 company-owned showrooms in India. (Two at Chennai, one at

Pune and one at Bangalore. Subject have 32 Franchisees and also 44 outrate purchase showrooms in India.

The Comapny

From its modest beginnings in 1981, with just one production unit, Ambattur Clothing Limited has now evolved into US $140 million group manufacturing apparel for some of the World's leading brands. An aggressive phase of expansion during the last decade has brought us to where we are today -India's leading exporters with nine production facilities in India and one at Bahrain. As always ACL remains committed to provide quality products and services to all customers at all times.

Location

Situated on the east coast of India, Chennai is one of the greatest metropolitan cities of the world and the fourth largest city in the country. Down the ages Chennai has grown from a number of small coastal villages including its former namesake Madraspatnam to the mighty city of Madras to the modern Chennai.

Chennai, on the Coromandal Shore conveys a sense of spaciousness and ease lacking in many other big Indian cities. A widespread city still open to skies; a green, airy city with several vestiges of its rural past; a city whose values of another day still survive in the midst of the humdrum bustle of today; a city that still retains the charm, culture and courtesies of the ages.

This city, with an international and domestic terminal, is well connected by air to the rest of the globe. It has a big port and has excellent infrastructure to support transport facilities.

For travelers with an interest in the rich and volatile colonial history of India, Chennai and its environs have much worth exploring.

Capacity

Location	Capacity million pieces 2005	Capacity million pieces 2006-07
ACL., Chennai, India	8	9
Export Zone, India	6	7
ACL, Bahrain	3	3
Total	17	19

Bankers Charges Report as per Registry

Name of the Company : Ambattur Clothing Limited

Presented by : -- The Director

1. Date and description of the instrument creating or evidencing the charge	Dated 27.04.1995 a. agreement of cash credit b. hypothecation agreement (both dated 27.04.1995)
2. Amount secured by the charge /amount owing on security of the charge	Rs. 76.000 millions
3. Short Particular of the property charged. If the property acquired is subject to change date of acquisition of property should be given	The whole of the company’s stocks of fabrics, garments and other raw material and stores whether raw or in process of manufacture and all articles manufactured there from stored in company godowns, premises, factory etc. and further secured by the whole of the immovable proprieties offered as collateral securities as per annexure to letter of sanction dated 21.03.1995
4. Gist of the terms and conditions and extent and operation of the charge.	Amount payable on demand concessionary rate of interest 13% per annum. Margin : Export Packing Credit : 25% Import Letter of Credit : 10% Bank Guarantee : 10%
5. Names, address and description of the persons entitled to charge	State Bank of India Overseas Branch, 39 Rajaji Salai, Chennai – 600 001, Tamilnadu, India
6. Date and brief description of instrument modifying the charge	Dated 29.05.2004 1. supplemental agreement of loan for increase in the overall limit in Form C1-A. 2. supplemental agreement of hypothecation of goods and assets for increase in the overall limit in Form C2-A. 3. supplemental agreement of pledge of goods and assets for increase in the overall limit in Form C3-A. 4. letter regarding the grant of individual limit with in the overall limit in Form C5. 5. memorandum of deposit for creation of further charge for term loan/ overall limit where the initial charge is created by the way of mortgage by deposit of title deeds in Form C10. All dated 29.05.2004 and relates to one and the same charge.
7. Particular of modification specifying the terms and conditions or the extent or operation of the charge in which modification is made and the details of modification	The credit facility extended to the company has now been enhanced from Rs. 900.000 millions to Rs. 1182.000 millions comprising of : Nature of Facility Export Packing Credit – Rs. 450.000 millions Standby Line of Credit – Rs. 50.000 millions FDBL (LC) – Rs. 300.000 millions Term Loan – Rs. 52.000 millions Letter of Credit – Rs. 300.000 millions Bank Guarantee – Rs. 30.000 millions Securities: hypothecation of all present and future goods, book debts and all other movable assets of the company including documents of title to goods, outstanding moneys, receivables including receivables by way of cash assistance and / or cash incentives under the cash incentive scheme or any other scheme, claims, including claims by way of refund of customs / excise duties under the duty draw back credit scheme or any other scheme, bills, invoice, documents, contracts, insurance policies, guarantees, engagements, securities, investments and rights uncalled capital and all machinery present and future machinery belonging to or in the possession or under the control of the company wherever lying stored and kept and whether in possession of the company borrower or of the bank or any third party whether in India or elsewhere throughout the world (including all such goods, other movable assets as may be in course of shipment transit or delivery shall stand hypothecated to the bank by way of first charge. Extension of equitable mortgage of company’s immovable properties viz., all that piece and parcel of land factory site and building bearing Plot No. DP-76 (SP) at Ambattur Industrial Estate in Saidapet Taluk, Chengai MGR District, admeasuring about 0.99 acres comprised in survey no. 549/1 part and 552 part of mugappair village (more fully described in the agreement) all that piece and parcel of land with building known as Plot No. (S) B-15 in the Industrial Estate at Ambattur, within the village limit of Mannurpet, Saidapet Taluk, Chengleput District, containing by admeasuring 28263 sq. ft. or thereabouts, bearing survey no. 94 part of mannurpet village (more fully described in the agreement) all that piece and parcel of land with building known as Plot No. 69(B) NP at Ambattur Industrial Estate in Saidapet Taluk and Chinglepet District and measuring 27008 sq. ft. with a built up area of about 15000 sq. ft. comprised in survey no. 840 part, 842 part, 934 part of korattur village (more fully described in the agreement) all that piece and parcel of land bearing Plot No. 86-E/2, (SP) at Ambattur Industrial Estate in Saidapet Taluk, Chengleput District measuring about 8343 sq. ft. comprised in survey no. 74 part, 75 part, 117 part, 126 part and 127 part of mannur village (more fully described in the agreement) all that piece and parcel of land and building bearing Shed No. B9 at Ambattur Industrial Estate in Saidapet Taluk, Chengleput District measuring about 28581 sq. ft. with built up area of 13786 sq. ft. comprised in survey no. 64, 80 and 68 parts of mannurpet village (more fully described in the agreement) all that piece and parcel of land and building known as Plot No. B 10 at Ambattur Industrial Estate in Saidapet Taluk, Chengleput District measuring about 28154 sq. ft. or thereabouts comprised in survey no. 80, 82 parts of mannurpet village (more fully described in the agreement) all that piece and parcel of land known as Plot No. D 16 with building in the Industrial Estate at Ambattur within the village limit Manurpet Taluk of Saidapet, Sub-Registration District of Ambattur in Chengleput Registration District containing admeasuring 20177 sq. ft. or thereabouts survey no. 83 parts and 87 parts of mannurpet village (more fully described in the agreement) all that piece and parcel of land known as Plot No. D 26 with building in the Industrial Estate at Ambattur within the village limit Manurpet Taluk of Saidapet, Sub-Registration District of Ambattur in Chengleput Revenue District containing admeasuring 17400 sq. ft. or thereabouts survey no. 351parts and 354 parts of ambattur village (more fully described in the agreement) an undivided 1/3^rd Share each in all that piece and parcel of land known as Plot No. 24 (SP) at Industrial Estate at Ambattur within the village limit Manurpet Taluk of Saidapet, Sub-Registration District of Ambattur in Chengleput MGR District containing admeasuring 1.82 acres comprised survey no. 171/3 parts and 190 parts and 189 part and 191 part and 195 part and 196 part of mannurpet village (more fully described in the agreement) all that piece and parcel of land known as Plot No. 53 (SP) at Industrial Estate at Ambattur, Chennai – 58 together with building, shed erections, structures and electrical and other fittings within the village limit Manurpet Taluk of Saidapet, Sub-Registration District of Ambattur in Chengleput MGR District containing admeasuring 1.02 acres comprised survey no. 214 parts and 215 parts and 216 part and 183 part of mannurpet village (more fully described in the agreement) all that piece and parcel of land known as Plot No. D 15 at SIDCO Industrial Estate Complex at Ambattur, Chennai together with building, within the village limit Manurpet Taluk of Saidapet, Sub-Registration District of Ambattur in Chengleput MGR District containing admeasuring 20177 sq. ft. comprised survey no. 81 parts and 83 parts and 84 part and 87 part of mannurpet village (more fully described in the agreement) a residential apartments having super built area of 2017.02 sq. ft. bearing No. III a containing three bedrooms together with proportionate share in common areas and an undivided 850/10447 shares in all that pieces and parcel of vacant land measuring two grounds and 1419 sq. ft. comprised in R S. No. 154/23 and the property comprised in R S No. 154/22 measuring two grounds and 1245 and the properties in all measuring 5 grounds and 264 sq. ft. situated in Nungabakkam Village, bearing No. 5, Nungambakkam High Road, and No. 9, I Street, Dr. Thirumurthi Nagar, Nungambakkam, Madras 43 (more fully described in the agreement) an undivided 24.13/ 1360 the Share in all that piece and parcel of land bearing corporation Door No. 23 (Old Door No. 1-A) Collage Road, Nungambakkam, Madras 34, comprised in R S No. 99/5, Block No. 18, Nungambakkam Division (more fully described in the agreement) all that piece and parcel of land bearing Plot No. 86-E/2 (C) (SP) at Ambattur Industrial Estate in Saidapet Taluk, Chengleput District and measuring about 19198.5 sq. ft., comprised in S No. 74 part, 75 part, 117 part, 116 part and 127 part of Mannur village (more fully described in the agreement) all that piece and parcel of land and building bearing Plot No. 8, South Phase in SIDCO Industrial Complec at Ambattur with in the village limits of Mannur, Saidapet Taluk, Su-Registration District of Kinnur in Chengaleput MGR Revenue district measuring about 14400 sq. ft. together with buildings, viz. factory building, watchman quarters, toilet block well measuring totally about 4500 sq. ft. comprised in S No. 30 part and 31 part of Mannur village (more fully described in the agreement) shall continue to cover the enhanced limit of Rs. 1182.000 millions. Earlier securities given by the company shall continue to cover the enhanced limit of Rs. 1182.000 millions Rate of Interest, Margin and other terms and conditions as per the agreement All other terms and conditions as per the agreement.

Name of the Company : Ambattur Clothing Limited

Presented by : -- Ambattur Clothing Limited and HSBC Bank Limited, Chennai

1. Date and description of the instrument creating or evidencing the charge	Dated 13.03.2001 Agreement for Loan dt. 13.03.2001 Agreement for Overdraft / Cash General Security Agreement relating to goods dt. 13.03.2001 Agreement for overdraft / cash against hypothecation of revolving stocks and other movable assets and also present and future book debts dt. 13.03.2001
2. Amount secured by the charge /amount owing on security of the charge	Rs. 200.000 millions
3. Short Particular of the property charged. If the property acquired is subject to change date of acquisition of property should be given	sub-servient charge on the borrowers goods, book debts, raw materials, WIP, finished goods, stores and spares, loans and advances, receivables, actionable claims and all other movable assets (save and other otherwise except stock, book debts and other current assets which are spcailly charge with State Bank of India, Overseas Branch, 39 Rajaji Salai, Chennai – 600 001, Tamilnadu, India and other bank / financial institutions) second charge on fixed assets by way of registered deeds of hypothecation over plant, machinery and equipment for Rs. 200.000 millions
4. Gist of the terms and conditions and extent and operation of the charge.	short terms loan, foreign currency loan, overdrafts, export facility (documents against payment and acceptance) documentary credit (inland/foreign) differed payment credit (inland/foreign) combined limit of Rs. 100.000 millions
5. Names, address and description of the persons entitled to charge	HSBC Bank Limited Rajaji Salai, Chennai – 600 001, Tamilnadu, India
6. Date and brief description of instrument modifying the charge	Agreement dated 27.03.2003
7. Particular of modification specifying the terms and conditions or the extent or operation of the charge in which modification is made and the details of modification	Amount secured by the charge increase foreign exchange line from Rs. 100.000 million to Rs. 175.000 millions combined funded limit from Rs. 100.000 millions to Rs. 200.000 millions

Name of the Company : Ambattur Clothing Limited

Presented by : -- Ambattur Clothing Limited and State Bank of India, Overseas Branch, Chennai

1. Date and description of the instrument creating or evidencing the charge	Dated 27.04.1995 Agreement of cash credit Hypothecation agreement (both dated 27.04.1995)
2. Amount secured by the charge /amount owing on security of the charge	Rs. 76.000 millions
3. Short Particular of the property charged. If the property acquired is subject to change date of acquisition of property should be given	The whole of the company stock of facbrics garments and other raw material and stores whether raw or in process of manufacture and all articles manufactured there from stored in company’s Godown, premises, factory etc. and further secured by the whole of the immovable propriety offered as collateral securities as per annexure to letter of sanction dated 21.03.1995
4. Gist of the terms and conditions and extent and operation of the charge.	Amount payable on demand concessionary rate of interest 13% per annum Margins : Export Packing Credit : 25% Import Letter of Credit : 10% Bank Guarantee : 10%
5. Names, address and description of the persons entitled to charge	State Bank of India Overseas Branch, Rajaji Salai, Chennai – 600 001, Tamilnadu, India
6. Date and brief description of instrument modifying the charge	Form C5 dated 29.05.2004 Letter regarding the grant of individual limit within the overall limit. And Letter No. Nil dated 18.06.2004 – No instrument creation of deposit of title deeds of company property situated at B 13 Industrial Estate, Ambattur, Chennai – 600 058 and S 8 Industrial Estate, Ambattur, Chennai – 600 058, India
7. Particular of modification specifying the terms and conditions or the extent or operation of the charge in which modification is made and the details of modification	Amount secured by the charge increased from Rs. 900.000 millions to Rs. 1182.000 millions

Contact

86-E/2B, Industrial Estate, Ambattur, Chennai - 600 058, Tamilnadu, India
Tel. No.: 91-44-26357811 (9 Lines)
Fax No.: 91-44-26267150
Email : ambattur@ambattur.com

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.86
UK Pound	1	Rs.85.24
Euro	1	Rs.56.99

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		72

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		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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

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