MIRA INFORM REPORT

Report Date :

01.02.2007

IDENTIFICATION DETAILS

Name :	SHRI LAKSHMI COTSYN LIMITED
Formerly Known As :	SHRIVATSA INTERNATIONAL LIMITED
Registered Office :	19/X-1, Krishnapuram, GT Road, Kanpur, Uttar Pradesh, India
Country :	India
Financials (as on) :	30.06.2006
Date of Incorporation :	31.08.1988
CIN No.: [Company Identification No.]	U17122UP1988PLC009985
Legal Form :	A public limited liability company. The company shares are listed on the stock exchanges.
Line of Business :	Manufacture and processes a wide range of fabrics, including hundred percent cotton, blended fabrics, embroidered, fusible interlining, defence and army products like camouflage fabric uniforms, bulletproof jackets.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 5250000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. General financial position is satisfactory. Trade relations are fair. Payments are correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions .

LOCATIONS

Registered Office :	19/X-1, Krishnapuram, GT Road, Kanpur, Uttar Pradesh, India
Tel. No.:	91-512-2401492/2893/2733
Fax No.:	91-512-2402339
E-Mail :	svi@shrivtsainternational.com / shri@slcl.in
Website :	http://www.slcl.in
Corporate Office :	Ø 408, A. J. Chambers, 953, Payaralal Road, Karalbagh, New Delhi- 1100005 Tel No. 91-11-25783041/25756706/25818489 Fax No. 91-11-25719234 Ø 6A, 6C, Vandana Building, 6^th Floor, 11 Tolstoy Marg, Canaught Place, Karol Bagh, New Delhi- 110 001 Tel No. 011-30422101-02 / 51547564 Fax No. 011-51547563 E-Mail : shrilakshmicotynlimited@yahoo.co.in
Factory 1 :	Ø Gadhaurlly Village, P. O. Aung, G. T. Road, District – Fatehpur – 212665, Uttar Pradesh, India Ø Libaspur Village, Near Bahulgarh Chowk, District – Sonepat, Haryana, India Ø Plot A7-B 38, Malwan UPSIDS, G.T. Road, District- Fatehpur – 212665, Uttar Pradesh (India) Ø P.O.Aung, GT Road. District Fatehpur, U.P Ø Village – Libaspur, District – Sonepat, Haryana Ø Dev Bhoomo Industrial Estate, Village Banta Kheri, Tehsil Roorkee, District – Haridwar, Uttaranchal

DIRECTORS

Name :	M P Agarwal
Designation :	Chairman & Managing Director
Name :	Pawan Kumar Agarwal
Designation :	Joint Managing Director
Name :	Devesh Gupta
Designation :	Deputy Managing Director
Experience :	25 years
Name :	J S Varshney
Designation :	Director
Name :	S K Mangol
Designation :	Director
Experience :	40 years
Name :	Sharda Agarwal
Designation :	Director
Name :	Vijay Mishra
Designation :	Company Secretary
Name :	L N Vaz
Designation :	Nominee (IDBI)
Name :	R K Garg
Designation :	Additional Director
Name :	Dileep Bajaj
Designation :	Additional Director
Experience :	30 years
Name :	Prof. (Dr.) G.N. Mathur
Designation :	Additional Director
Name :	Mr. J V Rao
Designation :	Director
Name :	Mr. Amit K Gupta
Designation :	Company Secretary

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters' Holding
India Promoters	4443035	32.43
Non-Promoters' Holding
Foreign Institutional Investors	75000	5.48
Others
Domestic Companies	5552741	40.53
Indian Public	2954224	21.56
Total	13700000	100.00

BUSINESS DETAILS

Line of Business :	Manufacture and processes a wide range of fabrics, including hundred percent cotton, blended fabrics, embroidered, fusible interlining, defence and army products like camouflage fabric uniforms, bulletproof jackets.
Exports to :	Europe, Middle East USA
Imports from :	Germany, Korea & Japan
Terms :
Selling :	L/C, Cash, Credit (Sight)
Purchasing :	L/C

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Shirting Suiting	Mtrs.	3,00,00,000	3,14,47,329
Fusible Interlining	Mtrs.	1,00,00,000	1,33,77,015
Quilted Fabrics	Mtrs.	4,00,000	2,59,721
Embroidery Fabrics	Mtrs.	8,00,000	7,37,137

GENERAL INFORMATION

Customers :

Wholesalers, End Users

No. of Employees :

1500

Bankers :

Ø Syndicate Bank

Ø Bank Of Baroda

Ø Central Bank of India

Ø Union Bank of India

Ø Canara Bank

Ø Indian Bank

Ø State Bank of Patiala

Facilites :

Secured Loan	30.06.2006
Term Loans	1538.826
Working Capital Loans	683.361
Vehicle Loans	1.652
Unsecured Loan
Unsecured Loan	42.762

Banking Relations :

Satisfactory

Auditors :

Pradeep & Associates

Chartered Accountants

Kanpur

Address:

27/78 A, Gagan Deep Complex, Birhana Road, Kanpur - 208001

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs. 10 each	Rs. 300.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,37,00,000	Equity Shares	Rs. 10 each	Rs. 137.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		30.06.2006	30.06.2005	30.06.2004
SHAREHOLDERS FUNDS
1] Share Capital		137.000	100.000	100.000
2] Share Warrant		71.600	0.000	0.000
3] Reserves & Surplus		1104.602	505.883	408.300
NETWORTH		1313.202	605.883	508.300
LOAN FUNDS
1] Secured Loans		2223.839	891.169	597.500
2] Unsecured Loans		42.762	2.796	2.300
TOTAL BORROWING		2266.601	893.965	599.800
DEFERRED TAX LIABILITIES		18.204	5.180	0.000
TOTAL		3598.007	1505.028	1108.100
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		347.385	307.698	314.500
Capital work-in-progress		1959.700	176.500	0.000
INVESTMENT		4.621	0.184	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	636.690	540.150	393.200
	Sundry Debtors	686.082	540.294	434.500
	Cash & Bank Balances	16.695	2.367	5.900
	Others	39.454	18.289	0.000
	Loans & Advances	59.340	22.644	41.700
Total Current Assets		1438.261	1123.744	875.300
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	146.277	98.034	81.700
	Provisions	5.683	5.064	0.000
Total Current Liabilities		151.960	103.098	81.700
Net Current Assets		1286.301	1020.646	793.600
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3598.007	1505.028	1108.100

PROFIT & LOSS ACCOUNT

PARTICULARS	30.06.2006	30.06.2005	30.06.2004
Sales Turnover [including other income]	3639.405	2837.811	2163.500
Profit/(Loss) Before Tax	177.200	112.990	61.900
Provision for Taxation	18.781	10.180	00.000
Profit/(Loss) After Tax	158.419	102.810	61.900
Export Value	459.376	399.970	NA
Total Expenditure	3462.205	2724.822	2101.600

QUARTERLY RESULTS

PARTICULARS	30.09.2006 (1^st Quarter)	31.12.2006 (2^nd Quarter)
Sales Turnover	985.200	1259.900
Other Income	11.100	9.100
Total Income	996.300	1269.000
Total Expenditure	906.600	1109.900
Operating Profit	89.700	159.100
Interest	25.800	41.800
Gross Profit	63.900	117.300
Depreciation	6.700	16.300
Tax	6.200	6.500
Reported PAT	51.000	94.500

200609 Quarter 1 - Status of Investor Complaints for the quarter ended September 30, 2006 Complaints Pending at the beginning of the quarter 2 Complaints Received during the quarter 9 Complaints disposed off during the quarter 10 Complaints unresolved at the end of the quarter 1 1.The Above Results were duly reviewed by the Audit Committee and were taken on record by the Board of Directors in its meeting held on 30.10.2006. 2.The Comapny is Functioning in only one segment i.e 'Textiles', Hence the segment reporting required under AS-17 issued by the Chartered Accountants of India is not applicable. 4.Previous periods figures have been regrouped/recasted wherever necessary. 5.The commercial production of grey fabrics under expension project has started in september, 2006.

200612 Quarter 2 - Net Sales Includes Domestic Rs 1097.50 million Export Rs 162.40 million Expenditure Includes (Increase) / Decrease in Stock in Trade Rs (63.60) million Consumption of Raw Materials Rs 1100.30 million Staff Cost Rs 17.00 million Other Expenditure Rs 56.20 million EPS is Basic and Diluted Status of Investor Complaints for the quarter ended December 31, 2006. Complaints Pending at the beginning of the quarter 01 Complaints Received during the quarter 27 Complaints disposed off during the quarter 26 Complaints unresolved at the end of the quarter 02 1. The above Results were duly reviewed by the audit Committee and were taken on record by the Board of Directors in its meeting held on January 29, 2007. 2. The Company is functioning in only one segment i.e. Textiles, hence segment Reporting as required under AS-17 issued by the Institute of Chartered Accountants of India is not applicable. 3. The figures of previous periods have been regrouped / recast, wherever necessary. 4. The commercial production of expansion project will be in full swing from the current quarter.

KEY RATIOS

PARTICULARS	30.06.2006	30.06.2005	30.06.2004
Debt-Equity Ratio	1.71	1.34	1.18
Long Term Debt-Equity Ratio	1.00	0.39	0.35
Current Ratio	1.54	1.60	1.74
TURNOVER RATIOS
Fixed Assets	7.25	6.20	4.83
Inventory	6.12	6.05	6.08
Debtors	5.87	5.79	5.35
Interest Cover Ratio	2.80	2.34	1.69
Operating Profit Margin(%)	8.42	7.83	8.24
Profit Before Interest And Tax Margin(%)	7.66	7.00	7.19
Cash Profit Margin(%)	5.16	4.47	3.99
Adjusted Net Profit Margin(%)	4.40	3.64	2.94
Return On Capital Employed(%)	11.01	15.15	14.54
Return On Net Worth(%)	17.15	18.45	12.96

STOCK PRICES

Face Value	Rs. 10/-
High	Rs. 134.90
Low	Rs. 126.00

LOCAL AGENCY FURTHER INFORMATION

Galaxy Indo-Fab, promoted by M P Agarwal set up facilities for processing and manufacturing quilts ie, polyfilled bedspreads. The processing capacity of 6.000 Millions mtr pa went on stream in Jun'92. The quilts unit has a capacity of 0.250 Millions

 GIL focussed on fabric processing and doubled its capacity to 12.000 Millions mtr pa (cost: Rs 16 millions), financed by a UPFC loan of Rs 7.50 millions and internal accruals. The expanded capacity became operational in Jan'95. GIL also set up a garment manufacturing unit at Silvassa (cap: 0.800 Millions pcs pa; cost : Rs 4.50 millions) with the help of lease finance. During 1996-97, the company has increased its installed capacity of fabric to 1,80,00,000 MTPA. 

 The company introduced quilted fabrics to overseas market for HORSE RUGS through export houses in 1999-2000. During 2003, the name of the company was changed to Shrivatsa International Limited. It had gone for backward integration by setting up 100% EOU for weaving facilities.

Corporate Profile

Shri Lakshmi Cotsyn Limited (Shri Lakshmi), an ISO 9001-2000 accredited entity, a Multi- Dimensional, Multi-Divisional, Multi- Product is engaged in textile manufacturing, established with vision to go global, involving highly experienced team of high caliber professionals, headed by Dr. M.P. Agarwal with more than three decades of rich diversified business experience. In less than two decades Shri Lakshmi has risen over the textile horizon to be a dynamic transactional, competing successfully in textiles products on all spherical directions and has carved niche for itself in burgeoning field of textiles.

With the goal of becoming a dominant player in the textile industry, Shri Lakshmi has established state-of-the-art manufacturing facilities using world class plant, process, machineries and technologies. These strengths have been translated into a robust financial performance and hold the promise of even a greater future for the Company.

By realigning its attention through a dedicated focus on enhancing efficiencies both internally and externally, Shri Lakshmi has achieved great success in selectively addressing the value added and branded segments with customized offerings for niche markets.

Shri Lakshmi is committed in creating value for its stakeholders, by delivering on promises and building relationships. Shri Lakshmi has excelled in attracting the highest quality customers, investors, employees and suppliers, resulting in measurable differences in operations.

PERFORMANCE 

 The overall economic environment in the country continues to remain buoyant and business confidence is high. This is equally true for the textile sectors. The realization that impetus to the textile sector can catalyze economic development in the country in all pervasive manners. The buoyancy in the industry can be seen across the length and breadth of the country. 

 During the year, the commercial production of Company's project at Malwan, U.P. has successfully commenced and inspired by the success of Malwan project, the Company has entered into forward integration mode by setting a garment project in Roorkee, Uttaranchal endeavoring to establish a fully integrated textile unit to present from weaving to retailing under the Company's umbrella. 

 Various organizational development initiatives were undertaken during the year. These are expected to help create a robust organization based on strong values, uniform and systematic business processes and people empowerment. The company has taken major marketing initiatives to create a differentiated brand identity of Company's prominent brands. 

 During the year under review, the Company recorded a Gross Income of Rs 3639.405 Millions as against Rs. 2837.811 Millions a year ago, a growth of 28.25% over the last year. The profit after tax also grew by 62.84% being Rs. 158.419 Millions during the year under review as against Rs. 97.287 Millions in the last year. The improvement in performance of the Company has been possible mainly on account of improved capacity utilization, increase in sales of technical textile fabric, generating better margin and cost reduction measures adopted by the Company resulting in better operational efficiency and valued added products. 

EXPORTS

 During the year under review the Company has extended its activities in new geographies that significantly improved the export turnover of the Company from Rs. 459.376 Millions as against Rs 399.970 Millions of previous financial year, thus registering a growth of 14.85 % over the last year. 

 MANAGEMENT DISCUSSION AND ANALYSIS 

 INDUSTRY STRUCTURE & DEVELOPMENT

 During the year under review the Indian economy continued to grow at a robust rate ushering in an era of massive investment in different sectors of the economy including those in which the Company operate. The great Indian textile story might have made every one talking about it as the most happening sector. Ever since the dismantling of quotas in 2005, Indian textiles players are obsessed with three words-scales, competitiveness and market share. 

All India index of Industrial Production (IIP) registered an increase of

8.0% during 2005-06 as against the corresponding period of last year. The index of industrial production captures the over all production taking place in the economy, in fact overall production levels cater to both internal demand and external demand. The index of production for the textile group of industries showed a surge in the entire sector. There was a significant increase in respect of textile products (16.4%) and cotton textiles (8.5%) in the fiscal 2005-06. 

 Global demand is reflected by exports or in this case textile exports, An increase in textile exports would have put an upward pressure the demand for textile products, resulting in an increase in production in the textile sector. 

 India notched up a 14% growth in textile exports and an impressive 33% jump in clothing exports for last year. Incidentally only China and India have registered growth in exports to the EU while all other major suppliers have recorded a negative growth. In the entire 2005 period Chinese textile exports to the US grew by 53% while India recorded a 27% increase in 2005, on an international comparison, South Korea and Mexico appeared to be the biggest losers. 

 The study expected productivity levels in the textile sector to go up in the wake of increased competition, technology infusion and supply-chain dynamics. 

FINANCIAL & OPERATIONAL REVIEW 

 The Company earned a gross income of Rs. 3639.405 Millions for the financial year ended 30th June, 2006, as compared to Rs 2837.811 Millions in the previous year, an increase of 28.25%. 

 As a result, the profit after Tax for the year was higher at Rs.158.419 Millions as against Rs. 97.287 Millions in the previous year. 

 Interest expenditure for the year under review increased by 10.04 % to Rs. 85.192 Millions from Rs 77.417 Millions in the previous year. 

 Depreciation during the year was higher at Rs. 27.320 Millions as compared to Rs. 23.353 Millions for the corresponding period in the previous year. 

 In order to further enhance its brand equity and closely align with its customers, major development initiatives have been undertaken in improving customer-centricity and escalating this vital value across all functions. 

 The Company has set up its own export department. The major thrust was for export of dress material and embroidered fabric to U.A.E. Recently senior executives of the company visited Bangladesh, Germany, and U.S.A. for exploring the export potential and received good response for the products manufactured by the company. Export potential survey undertaken by the company reveals there is a great demand of 100% Polyester Dress material fabric in U.A.E., Printed bed sheets made from 100% cotton fabric in Europe and in USA, Bottom weight and Denim fabric in Bangladesh and Sri Lanka. The 100% Polyester Dress material fabric being the existing product line is being exported by the company to Dubai, Indonesia, Kuwait and Countries of U.A.E. 

 OPPORTUNITIES

 There is already a huge opportunity in terms of outsourcing of home textiles to the world's biggest market like the US and EU, which account for 60 percent of the $70 billion global home textile market. India occupies a competitive position when compared with equally low-cost producing countries, particularly Pakistan and China. Hence, a steady improvement in textile exports from India is expected. 

 India's cotton textile industry has a high export potential. Cost competitiveness is driving the penetration of Indian basic yarns and grey fabrics in international commodity markets. Small and flexible batches of apparels can be manufactured in India and can provide a larger variety of casual wear and leisure garments at significantly lower costs. 

 Because of its versatility, durability and resilience, nylon and denim are some fabric to have emerged as a product of mass consumption. The total production of Indian Denim manufacturers are 416 million meters p.a. with their expanding capacity of 60 million meters p.a. Also the domestic consumption of Denim is approximately 175 million meters per annum. Beside that in India the clothing industry geared up for further increase of the readymade garments (Denim Products) by putting approximate 60000 Denim stitching machines, the per machine can consume approximately 20meters of Denim fabric, indigenous need due to this of Denim fabric in market will also increase approximately 396 million meters p.a. 

 With Company's advantages a cheap skilled labour and access to low cost yarn i.e. basic raw material, it is expected that margin of the Company's products could grow on exponential basis over the next few years. 

THREATS 

 Though the Indian textile industry has a strong base in terms of expertise, manpower and material availability, available resources, for various reasons, have not been fully exploited and updated with changing trends in application of textiles. But with greater investment, focused R&D efforts, and creation of state-of-the-art common testing facilities, India could emerge as a leading technical textile manufacturer and exporter. 

 Stating that textile industry is highly influenced by government policy support, globalisation, impact of WTO, development in retailing and technology and supply chain integration. Confederation of Indian Industry (CII) said that India is well positioned to capitalize the post-WTO scenario as it has an established base in textiles. 

 BUSINESS OUTLOOK 

 The activities of Company are well diversified with in textiles and comprises of Processing, Home Textiles, Fusible interlining Quilted fabrics and Textile products being used in Defence. Their core competency lies in manufacturing of Blended Suiting & Shirting, Cotton Fusible Interlining, Industrial Fabric, Embroidery, Lace Fabric and Quilted Fabric. 

 After analyzing the market potential and profitability of these products, the Company has chalked out massive expansion plans to build size and infrastructure to become more competitive. These expansion will help the Company to create a foothold in the domestic as well as overseas markets such as the US, UAE and EU, which are otherwise difficult to get into. 

 Under the Company's ongoing expansion project, the manufacturing facilities for Denim, wider width, Bottom Wear Fabric and Terry Towel is in advance stage. The Company is further expanding its set up by adding the following value added facilities 

 1. Nylon Coated Fabric 1.25 Millions meter p.a 

 2. Furnishing Fabric (Woven) 4.80 Millions meter p.a 

 3. Furnishing Fabric (Knitted) 2.50 Millions meter p.a 

 Besides the above, the Company is, in a move to forward integration, also setting up a new garment manufacturing facility at Roorkee, Uttaranchal to be commissioned by next fiscal having an annual capacity of 6 million pieces in line with its plan to foray in the ready made garment segment. With branding and retailing of end products from its own made raw materials, companies can hope to improve their margins substantially. The Company is endeavoring to move the value chain as the highest value addition is at the retail level, and if the Company is integrated, it will boost margins. Spinning, weaving and processing have matured as high capital and low labour intensive segments while garmenting have evolved as low capital and high labour intensive. 

AS PER WEBSITE

Shri Lakshmi Cotsyn to enter denim segment

G. Srinivasan

Dr M.P. Agarwal

New Delhi , July 20

IN the post-quota regime governing global trade in textiles and clothing, only the low-cost efficient producers leveraging economies of scale in operation could succeed.

A Kanpur-based company is planning foray to western markets using synthetic blends and cotton.

Incorporated in 1988, the Rs 2820.000 Millions Shri Lakshmi Cotsyn Limited (SLCL), with two manufacturing facilities in Fathephur (Uttar Pradesh) and Sonepat (Haryana), has drawn up an ambitious Rs 2640.000 Millions investment plan to equip its production facility for entry into the denim and terry towel, bed linens and cotton rich segment.

He said that out of the turnover of Rs 2820 millions the company posted during 2004-05, as much as Rs 2420 millions came from domestic sale and the balance Rs 400 millions from export mostly to the UAE, Dubai and African subcontinent.

Talking to Business Line here about the new project, the Chairman-cum-Managing Director of SLCL, Dr M.P. Agarwal, said the company proposes to invest Rs 2640 millions in the next couple of months.

The funds would be raised through a medley of equity capital of Rs 640 millions, internal accruals of Rs 170 millions and Rs 1850 millions by way of funding from the term-lending institutions.

Even as the twin plants of the SLCL have an installed capacity of producing 18 million metres of suiting and shirting fabrics, 10 million metres of cotton fusible interlining and 1.2 million metres of embroidered, laced and printed fabrics every year, the company's total capacity after implementation of the new project would be of the order of 62.5 million metres.

He said in line with global trends, the company intends to equip its production facility with rope dyeing technology for denim and technologically superior machinery for other products to generate revenues of more than Rs 10000 millions at optimal capacity.

The company proposes to put the project on stream before its current accounting year is over by June 2006.

He said that in the new investment project, as much as 80 per cent is earmarked for exports, particularly to the US and the European continent with the remainder 20 per cent for domestic sales.

Stating that cost economy is to be seen in a total scenario whether it is denim or any other product, Dr Agarwal said that as power and labour cost remain the twin challenges on the cost front, the new project is equipped with agro-based captive power generation.

As the labour cost in Kanpur being slightly above the norm prevailing in Gujarat and Maharashtra, the company proposes to engage 2,500 workers against the general industry norm of 4,000 workers to churn out 2 million metres.

Dr Agarwal said that the company had tie-up with defence outfits such as Defence Research Development Organisation, Defence Materials Stores Research and Development Establishment.

"They have purchased different technology from them and developed products and supplied to them," he said, adding that recently an order for nylon fabrics has been procured from them to supply to defence personnel.

He said the company has procured order for producing nuclear biochemical clothing (NB suiting).

Besides catering to the demands of defence establishments, SLCL has been actively selling in the domestic segments too for various cotton-based clothing at competitive rates. He said the proposed product line such as denim, wide width sheeting, cotton suiting and terry towel have immense demand in the indigenous markets too.

Being an established player in the blended fabrics, quilted fabrics, fusible interlining and embroidered fabrics markets, the company's move into the denim segment would contribute at least 9 to 10 per cent to the company's bottomline, Dr Agarwal said.

India : Shri Lakshmi Cotsyn unleashes Rs 2640.000 Millions expansion plan
July 12, 2005

Leading textile caompany based at Kanpur Shri Lakshmi Cotsyn Limited unleashed expansion plans worth Rs 2640 millions to establish new plant.

The new plant is expected to be fully functional by June 2006. This plant is being developed to produce denim, terry towel, bed linen and cotton suiting segment.

The company plans to get Rs 1820 millions through loans, Rs 620 millions through equity and the rest Rs 170 millions through internal borrowings to raise fund for the expansion plan. After completion of new plan, the total capacity of the company will increase to 62.5 million meters per annum.

The company anticipates reaching at a turnover of Rs 6460 millions in the first year of the new unit's operation in 2006-07.

Chairman and MD of Kanpur Shri Lakshmi Cotsyn Limited informed that at plant is used at 90 per cent of its capacity, the company will be able to attain turnover of Rs 10000 millions.

At present company’s existing range includes blended, quilted and embroidered fabrics, fusible interlining and specialized technical textile fabrics for defence and para military forces.

Shri Lakshmi Cotsyn to invest Rs2640 millions in expansion
13July 2005

New Delhi: Kanpur-based textiles major Shri Lakshmi Cotsyn Limited (SLCL) announced its investment plan to enter the lucrative denim and, terry towel, bed linens and cotton rich segment.

The company will invest Rs2640 millions over the next 12 months on its new project. The funds will be raised through a combination of equity capital, internal accruals and FI funding. The proposed expansion will enable the company to achieve a turnover of Rs 6460 millions from Rs 282 millions 0in the first year of operation in 2006-07 at 60 per cent capacity.

An established manufacturer in the blended fabrics, quilted fabrics, fusible interlining and embroidered fabrics market; SLCL feels that its entry into the denim segment will contribute around 10 per cent to the company's bottom line.

According to Dr M P Agarwal, chairman and managing director, " The Company hopes to leverage the removal of global textile quotas by setting up new capacities in the buoyant denim and cotton segments. The land measuring 48 acres for the project has already been acquired and civil construction is in full swing. Besides firm contracts for all major imported and indigenous machines have already been finalised. The proposed product line like denim, wide width sheeting, cotton suiting and terry towel, have great demand in the domestic market as well as internationally".

After implementation of the new project the company's total capacities will be to the tune of 62.5 million meters, generating revenue of more than Rs10000 millions at optimum capacity utilisation. Of this, approximately 50 per cent of the produce will be earmarked for the export market.

Added Dr. Agarwal," Currently the international market for the existing product range is UAE and African subcontinent. The proposed products however will target niche markets in the US and Europe". The Company has drawn up plans to enter into strategic alliances with large buyers within and outside India and expand its dealer network.

The abolition of the quota system has resulted in availability of new markets for sale, closure of industrial units in the US and other countries due to non-competitiveness owing to lack of cost advantage and subsequent increase in demand of the products internationally. In line with the requirements of the international markets, the Company proposes to equip its production facility with state of the art Rope Dyeing technology for Denim and technologically superior machinery for other products to adapt itself to international buyer requirements. The Company will also enjoy a significant cost benefit compared to its counterparts because of agro based captive power generation resulting in lower cost per unit, cheaper manpower, lower cost of project, etc.

Incorporated on August 31st, 1988, Shri Lakshmi Cotsyn Limited. manufactures and processes a wide range of fabrics, including hundred percent cotton, blended fabrics, embroidered, fusible interlining, defence and army products like camouflage fabric uniforms, bulletproof jackets.

The Company is equipped with an excellent computerised multi needle Embroidery machine.  A competent team of designers design the Fabrics (both in cotton and tissue) and Lace. They manufacture Embroidery Fabric, Embroidery, Lace etc.  

The Company has a most modern and sophisticated Processing and Dying unit, producing 100% cotton blended fabrics P.C  &  P.V.  and   similar   type  of  fabrics. They manufacture Suiting, Suiting fabric, Suiting & Shirting, Canvas Fabric, Ripstop Fabric, Cotton Fabric, Twill Fabric, Drill Fabric, Gabardine Fabric, Polyester Cotton Fabric, 100% Cotton Fabric, Polyester Viscose Fabric, Canvas Cloth, Industrial Fabric, Synthetic Fabric etc.

The Company manufactures Microdot fusible interlining fusing fabric for shirt Collars, Cuffs, Belt Rolls and Pockets. This unit is equipped with a complete Fabric processing as well as LDPE / HDPE coating facility. They manufacture Fusible Interlining, Interlining, Microdot Fusible Interlining, Powder Dot Coated Fabric, LDPE Coated Fabric, HDPE Coated Fabric, EVA Coated Fabric, Colors, Cuffs, Belt, Buckram etc.

Shri Lakshmi Cotsyn Limited, is proud of it's Quilted products, manufacture by a state of art fully computerised multi needle quilting machine imported from Switzerland and South Korea. They manufacture Quilts, Baby Quilts, Patch Work Quilts, Bed Covers, Quilted Pillow covers, Comforts, Quilted Bed Spreads etc.

They manufacture Coated Fabric, PU Coated Fabric, Polyurethane Coating, Protective Coating, Protective Clothing, Camouflage Fabric, Military Clothing, Army Clothing, Military Apparel, Military Textiles, Water Repellent Fabric, Fire Retardant Fabric, Flame Retardant Fabric, Flame Resistant Fabric, Fire Resistant Fabric, Bullet Proof Jacket, Body Armor, Nylon PU Coated Fabric, etc. for Indian Military forces, Para Military forces etc.more...

Profile

Incorporated in August, 1998,as Galaxy Indo- Fab Limited., now Shri Lakshmi Cotsyn Limited., is a household name, manufacturing and processing a very wide range of fabrics.

The company was set up to process 100% cotton & blended fabrics, with an installed capacity of 60 lacks meters per year, which has enhanced to a figure of 18.000 Millions meters per year today, in a time span of a decade. Besides cotton and blended fabrics, the company has diversified its product range into the arena of Embroidery, Quilting, Fusible interlining, defence and army products like camouflage fabric uniforms, bulletproof jackets. Backed by a highly professional and skilled work force of five hundred strong men, the company sincerely believes in providing satisfaction to each and every customer, giving the latter an uncompromisingly best Quality in products and services. The annual turnover of the company is approximately US $ 25 million, while its total assets are approximately US $ 12 million.

The company is a registered member of :

• Merchant Chamber of Commerce, UP.
• Northern India Textile Processors Association, Delhi.
• The Cotton Textile Export Promotion Council, Mumbai.
• Apparel Export Promotion Council, Delhi.
• Indo German Chamber of Commerce, Delhi.

Their Activities & Infrastructures:

The company's diversified production activities have been categorized into the following units:

• Embroidered Fabric and Lace
• Cotton & Synthetic Fabric
• Quilting
• Fusible interlining
• Machinery  Fabric Processing & Printing Embroidery Fusible Interlining  Quilting
• Quality Assurance
  
  Managements

The Management of Shri Lakshmi Cotsyn Limited., lies in the very efficient hands of a professionally educated and highly experienced board of Directors.

 The company is promoted by Dr. M.P. Agarwal, a professional turned industrialist with vast experience in project implementation, project management, finance and overall industrial management. The company's Chairman and Managing Director, Dr Agarwal is a qualified Cost Accountant (ICWAI) and Doctorate (PhD) in Textile Costing.

Mr Pawan Kumar Agarwal, a Science Graduate and trained in computer applications, is the Joint Managing Director looking after production, quality controls and marketing.

Mr Devesh Gupta, Executive Director of the company, is Post Graduate in Science and has more than 15 years' experience in Chemical Engineering and Industrial Marketing.

Embroidered Fabric & Lace    

Shri Lakshmi Cotsyn Limited., is equipped with an excellent computerised multi needle Embroidery machine, imported from Switzerland. A competent team of designers design the Fabrics (both in cotton and tissue) and Lace. These high quality Embroidered Fabric and Lace are marketed under the brand name  of "Alisha Embroidery"

• Embroidered Cotton Fabric
• Embroidered Tissue Fabric
• Lace

Cotton & Blended Fabric   

Shri Lakshmi Cotsyn Limited., is equipped with an excellent computerised multi needle Embroidery machine, imported from Switzerland. A competent team of designers design the Fabrics (both in cotton and tissue) and Lace. These high quality Embroidered Fabric and Lace are marketed under the brand name  of "Alisha Embroidery"

• Embroidered Cotton Fabric
• Embroidered Tissue Fabric
• Lace

Shri Lakshmi Cotsyn Limited., is proud to possess the most modern and sophisticated dyeing and processing plant, which is backed by highly educated technical team. This unit produces 100% cotton blended fabrics both P.C. & P.V. types.

Further the company is equipped with a full fledged computerized laboratory for the testing of the color, shades and strength of the fabrics. All this has given the products of the company a grade one in the quality standards, and the products are marketed under the brand name of "Star Track".

Fusible Interlining   

Shri Lakshmi Cotsyn Limited., manufactures Microdot fusible interlining, fusing fabric for shirt Collars, Cuffs, Belt Rolls and Placklets. This unit is equipped with a complete Fabric processing as well as LDPE / HDPE coating facility.

The interlining is produced in different sizes, to meet the customer specifications through a state of art technology, marketed under the brand name of "Star Track".
Their Main specialties are 100% shrink proof interlining.. Their interlining shows good bonding & dimensional stability after so many repeated wash. They produce following products :

• 100% Cotton woven Fusible Interlining
• Belt Roll
• Collars & Cough

Fusible Interlining :This is available in running length of different sizes and width from 90 cms to 120 cms as per customer requirement. Length of the fabric may be 25 Yards to 100 Yards in form of roll ,they are producing various quality specifications as follows.

Belt Rolls : Available in various sizes 25 MM to 75 MM in different length. This is used in men trousers Belt as an Interlining.

Collars & Cough : Available in various size and different shapres & stype as per customer specification

Shri Lakshmi Cotsyn Limited, possess state of art quilting machine imported from Switzerland and South Korea.

Stitching is done on Zuki stitching machine.

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. 44.11
UK Pound	1	Rs. 86.79
Euro	1	Rs. 57.44

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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