MIRA INFORM REPORT

Report Date :

13.09.2008

IDENTIFICATION DETAILS

Name :	ALPS INDUSTRIES LIMITED-
Registered Office :	B-2, Loni Road Industrial Area, Opposite Mohan Nagar, Dist. Ghaziabad - 201 007, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	11.05.1972
Com. Reg. No.:	3544
CIN No.: [Company Identification No.]	L51109UP1972PLC003544
TAN No.: [Tax Deduction & Collection Account No.]	MRTA00293G
Legal Form :	Public Limited Liability Company. The Company's Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing and use of Natural Dyes for Dyeing of Textile Fibres, Conversion of Dyed Fibres into Yarns, Fabrics, Home Furnishing and other Allied Textile Products.

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 13758380
Status :	Very Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track. Available information indicates high financial responsibility of the company. Directors are reported as experienced and respectable businessmen. Their trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	B-2, Loni Road Industrial Area, Opp. Mohan Nagar, Dist. Ghaziabad - 201 007, Uttar Pradesh, India
Tel. No.:	91-575-2732641 / 33 / 2731563 / 2772565-68 91-120-265 7649
Fax No.:	91-575-2732627 / 24732627 / 2770426 / 2772810 / 2772509 / 233457 91- 20-265 7540
E-Mail :	alps@alpsindustries.com alpsind@del2.vsnl.net.in b2alps@alpsindustries.com
Website :	http://www.alpsindustries.com
Corporate Office :	57/2, Site IV, Industrial Area, Sahibabad, Ghaziabad – 201 010, Uttar Pradesh, India
Tel. No.:	91-120-24896024 / 24896103 / 2896134 / 138 / 023 / 022
Fax No.:	91-120-24896138 / 2895299 / 2896041
E-Mail :	alps@alpsindustries.com alpsinfo@alpsindustries.com
Works :	Unit I Window Covering Products A-3, Loni Road Industrial Area, Ghaziabad – 201 007, Uttar Pradesh, India Email: sales@alpsindustries.com Unit II Home Furnishing B-2, Loni Road Industrial Area, Ghaziabad – 201 007, Uttar Pradesh, India Tel No. 91-575-2731563 Fax No. 91-575-2731563 E-mail: vista_mktg@alpsindustries.com b2alps@alpsindustries.com Unit III Vista Floor Fashions A-2, Loni Road Industrial Area, Ghaziabad – 201007, Uttar Pradesh, India Email : b2alps@alpsindustries.com vista@alpsindustries.com Unit IV [An Integrated Textile Unit having inhouse facilities of spinning, weaving, manufacturing of vegetables dye, fibre, fabric and yarn dyeing, processing and fabrication (made-ups)) 57/2, Site-IV, Industrial Area, Sahibabad, Ghaziabad – 201 010, Uttar Pradesh, India Email : alps@alpsindustries.com Unit V Vista Awnings B-160-161, Mettupalayam Industrial Estate, Pondicherry – 605 009, Union Territory Tel No. 91-413-2371895 / 2271895 / 2276749 Fax No. 91-413-2273684 / 2273684 E-mail: vista_pon@alpsindustries.com alpspon@md3.vsnl.net.in UNIT VI Yarn Spinning Mill (On Long term lease) Kashipur Spinning Mills, Near Govt. Degree College, Kashipur Bazpur Road, Kashipur, Distt.- Udham Singh Nagar, Uttarakhand - 244 713 Unit VIII Yarn Spinning Mill (On long term lease) Jaspur Spinning Mills, Afzal Garh Road, Jaspur, Distt.- Udham Singh Nagar, Uttarakhand-244 712 Unit IX Fiber Dyeing & Eco-Friendly Yarn Spinning Mill Plot No. 1A, Sec. 10, Sidcul, BHEL Integrated Indl. Estate, V.P.O.: Roshanabad Road, Distt.- Haridwar, Uttarakhand E-mail : commlharidwar@alpsindustries.com Unit X (Under Implementation) High Quality Compact Yarn Spinning Mill Plot No. IB, Sec.-10, Industrial Area, Integrated Industrial Estate, Ranipur, Distt. - Haridwar, Uttarakhand
Branch Office :	˜ F-213/D, III Floor, Lado Sarai, M. B. Road, New Delhi – 110 030 Tel No. 91-11-26532137-38 Fax No. 91-11-26532285-86 E Mail : vista_delhi@alpsindustries.com ˜ 3116/3117, Oberoi Estate, Chandivali Farms Road, Chandivali, Andheri (East), Mumbai – 400 072, Maharashtra Tel No. 91-22-28522111 Fax No. 91-22-28514744 E-mail: vista_bby@alpsindustries.com ˜ 303, Ahuja Chambers, 3^rd Floor, Kumar Krupa Road, Bangalore – 560 001, Karnataka Tel No. 91-80-2569780 Fax No. 91-80-2258780 E-mail: vista_bng@alpsindustries.com
R and T Agency :	Alankit Assignment Limited, Alankit House, 2E/21, Jhandewalan Extn., New Delhi-110 055, India
Tel No.:	91-11-4154 0061-63
Fax No.:	91-11-4154 0064, 4254 1201
Email .:	alankit@alankit.com
Regional and Marketing Office :	Delhi B-169, Okhla Industrial Area, Phase-I, New Delhi-1.10 020, India Bangalore : 303, Ahuja Chambers, 3rd Floor, Kumara Krupa Road, Bangalore - 560 001, India Ph : 91-80-2225 6974 Telefax : 91-80-2225 8780 Email : alps.blr@touchtelindia.net Mumbai: 3116 / 3117, Oberoi Estate Chandivali Farms Road, Chandivali, Andheri (E), Mumbai - 400 072, Maharashtra, India Telefax: 91-22-2847 2111 Email : vista@bom3.vsnl.net.in Chennai: 303, 3rd Floor, Indira Arcade, House No. 19/4B, Govindam Street, Ayyayoo Colony, Aminiji Karai, Chennai - 600 029, India Ph. : 91-44-2374 5210

DIRECTORS

Name :	Mr. K. K. Agarwal
Designation :	Chairman and Managing Director
Name :	Mr. Sandeep Agarwal
Designation :	Managing Director
Name :	Mr. Park B. Smith
Designation :	Director
Name :	Mr. Gopi Krishna Arora
Designation :	Director
Name :	Mr. Monika S. Garg (UPFC)
Designation :	Director
Name :	Mr. Rakesh Gupta
Designation :	Director
Name :	Mr. J. P. Kundra
Designation :	Director
Name :	Mr. M. L. Gulrajani
Designation :	Director
Name :	Mr. K. B. Agrawal
Designation :	Alternate Director
Name :	Mr. M. T. Chiddarwar
Designation :	Nominee (SICOM)

KEY EXECUTIVES

Name :	Mr. Ajay Gupta
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders (as on 31.03.2007):-	No. of Shares	Percentage of Holding
Shareholding of promoter and Promoter Group
India
Individuals / Hindu Undivided Family (HUF)	3801020	14.004%
Bodies Corporate	5184410	19.100%
Sub total A	8985430	33.104
Public Shareholding
Institutions
Mutual Fund / UTI	447858	1.650%
Financial Institutions / Banks	80380	0.296%
Insurance Companies (FI Government Sponsored)	2028738	7.474%
Foreign Institutional Investors (FIIs)	1334405	4.916%
Sub total B	3891381	14.336%
Non Institutions
Body Corporate	7656686	28.209%
Individual –
i) Individual shareholders holding nominal share capital up to Rs. 0.100 millions	4308729	15.874%
ii) Individual shareholders holding nominal share capital excess to Rs. 0.100 millions	2103754	7.751%
Any other (NRI Repatriable)	163861	0.604%
( NRI Non Repatiable ) and	29746	0.110%
(Trust )	3388	0.012%
Sub total C	14266164	52.56%
Shares held by custodians and against which depository receipts have issued
FII and Corporate Body Foreign Bodies (DR) – GDRs	5371125	0.000%
Sub total D	5371125	0.000%
Total	32514100	100.000%

BUSINESS DETAILS

Line of Business :

Manufacturing and use of natural dyes for dyeing of textile fibres, conversion of dyed fibres into yarns, fabrics, home furnishing and other allied textile products

Products :

ITC Code No.	Product Description
63031900	Vertical Blinds
510720 – 00	Pashmina Products
63039100	Other Textile Made-Ups
52051210	Cotton Yarn

Brand Names :

" Vista Levolor"

Exports to :

Bangladesh, Hongkong, Taiwan, UK, USA and France

Imports from :

Germany, Italy, Taiwan and USA

PRODUCTION STATUS (as on 31.03.2007):-

I) Production Capacity:-

Particulars	Unit	Licensed Capacity	Installed Capacity
Yarn	MT	34028.38	34028.38
Fabric	000 Sq. Mtr	19035.17	19035.17
Made Ups	000 Sq. Mtr	15228.00	10520.00
Fashion Accessories	000 Sq. Mtr	----	216.00
Architectural Products	000 Sq. Mtr	----	178.00

II) Production / Purchases:-

Particulars	Unit	Actual Production
Yarn	MT	20329.84
Fabrics / Made up/ Fashion Accessories	000 Sq mtr	33583.89

GENERAL INFORMATION

Suppliers :

· M/s Diamond Packaging

· Monsson (India) Private Limited

· National Adhesive

· Venus Polymers

· Press Metal Industries,

· Modern Industrial Syndicate,

· Marudhara Polypack Industries,

· Gaurav Engineering,

· Welworth Packers Private Limited

· Global Pack

· T. R. Cones

· Shri Parasnath,

· Shri Shyam Industries

· Sunny Texcone (India) Private Limited

· Core n Cans, Maharani Paints (India) Private Limited

· Abhinav Aluminium Limited

· Bright Electro Plating

· Engg. Private Limited .

· Endure System.

Customers :

• J.C. Penny, Bloomingdales, Sears, USA
• Kmart, Bed Bath and Beyond and Targets, USA
• Habitat, UK
• Habitat, France
• Habitat, Italy
• Itochu, Japan

No. of Employees :

1500

Bankers :

· State Bank of India

· ABN Amro Bank NV

· Bank of Baroda

· Bank of Rajasthan Limited .

· EXIM Bank

· IDB1 Bank

· ING Vysya Bank Limited .

· Jammu and Kashmir Bank Limited .

· Kotak Mahindra Bank Limited .

· Punjab National Bank

· Standard Chartered Bank

· State Bank of Hyderabad

· State Bank of India

· Sate Bank of Indore

· State Bank of Mysore

· State Bank of Patiala

· Syndicate Bank

· UCO Bank

Facilities :

SECURED LOAN	31.03.2007 (Rs. in millions)
Term Loans	2189.926
Bank and Financial Institutions	13.319
Others Term loans from Bank and Financial Institutions are Secured by First Pari-Passu charge created / to be created on Fixed Assets and Second Pari-Passu charge on current assets of the Company, both present and Future and by Personal Guarantees of some of the Directors. Term Loan from others are secured by hypothecation of specific fixed assets
Working Capital Loans from Banks: (Secured by Hypothecation of Stocks of Raw Material, Finished Goods and Semi Finished Goods, Consumable Stores and Spares, Book Debts, Second Pari-Passu Charge over Fixed Assets and by Personal - Guarantee of some of Directors)	1213.384
Total	3416.629
UNSECURED LOAN	31.03.2007 (Rs. in millions)
Short Term Deposits
Fixed Deposits	5.719
Others	297.669
Total	303.388

Banking Relations :

Good

Auditors :

R. K. Govil and Company

Chartered Accountants

Memberships :

Confederation of Indian Industry

Collaborators :

Ø Park B. Smith, USA :

- Headquarted on Fifth Avenue in New York City for over 25 years, is

a leading importer of Home Fashion Products. Its products are

available in departmental stores and fine linen speciality stores

throughout the USA, Canada, South America, Japan and Europe.

Ø Levolor Home Fashion Inc., USA

- Levolor is generic name in USA for blinds and is considered as an international standard for the industry.

Ø Franciaflex, France

Associates/Subsidiaries :

· Alps Texfab (Private) Limited ,

· Alps Infin Private Limited

· Improve InteriorCom Limited .

· Alps Processers Private Limited

· Careen Fintec (Private) Limited

· Coronation Spinning India (Private) Limited

· Padam Precision Dies and Component Private Limited

· Peek Finvest (Private) Limited

· Perfect Finmen Services (Private) Limited

· Roseate Finvest Private Limited

· Saurabh Floriculture (Private) Limited

· Supreme Finvest Private Limited,

· Bulland Buildmart Private Limited,

· Sedona Herbal Private Limited .

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
45000000	Equity Shares	Rs. 10/-each	Rs. 450.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
32514100	Equity Shares	Rs. 10/-each	Rs. 325.141 millions

Notes:

Of the above, (16257050 Equity Share of Rs. 107- each have been alloted during the year as fully paid up Bonus Share by capitalisation of General Reserve)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		325.141	162.571	67.200
2] Application Money - ZCCW		0.000	7.500	0.000
3] Reserves & Surplus		2426.535	2308.650	708.600
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2751.676	2478.721	775.800
LOAN FUNDS
1] Secured Loans		3416.629	2078.824	1021.900
2] Unsecured Loans		303.388	202.632	128.100
TOTAL BORROWING		3720.017	2281.456	1150.000
DEFERRED TAX LIABILITIES		141.695	122.450	0.000
TOTAL		6613.388	4882.627	1925.800
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2241.870	2156.234	802.000
Capital work-in-progress		1331.590	105.963	456.200
INVESTMENT		6.966	4.666	4.700
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1790.403	1122.513	629.700
	Sundry Debtors	822.221	497.395	195.200
	Cash & Bank Balances	483.038	1029.947	20.900
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	309.110	141.068	73.500
Total Current Assets		3404.772	2790.923	919.300
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	442.145	254.374	252.900
	Provisions	0.000	0.000	29.500
Total Current Liabilities		442.145	254.374	282.400
Net Current Assets		2962.627	2536.549	636.900
MISCELLANEOUS EXPENSES		70.335	79.215	26.000
TOTAL		6613.388	4882.627	1925.800

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		4291.354	2599.571	1840.500
Other Income		34.177	2.214	0.000
Total Income		4325.531	2601.785	1840.500
Profit/(Loss) Before Tax		354.805	261.717	151.800
Provision for Taxation		51.307	23.690	10.500
Profit/(Loss) After Tax		303.498	238.027	141.300
Earnings in Foreign Currency :
	Export Earnings	913.826	561.876	NA
Total Earnings		913.826	561.876	NA
Imports :
	Raw Materials	370.735	67.337	NA
	Stores & Spares	1.422	339.223	NA
	Capital Goods	3.456	0.516	NA
Total Imports		375.613	407.076	NA
Expenditures :
	Manufacturing Expenses	465.328	247.994
	Raw Material Consumed	3114.728	1841.021
	Increase/(Decrease) in Finished Goods	(240.341)	(117.270)
	Personnel Expenses	90.326	43.660	1688.700
	Other operating Expenses	202.945	140.154
	Other Expenditure	337.740	184.509
Total Expenditure		3970.726	2340.068	1688.700

QUARTERLY RESULTS

PARTICULARS	30.06.2008
Type	1^st Quarter
Sales Turnover	2042.500
Other Income	9.300
Total Income	2051.800
Total Expenditure	1746.100
Operating Profit	305.700
Interest	141.200
Gross Profit	164.500
Depreciation	81.700
Tax	8.500
Reported PAT	74.300

KEY RATIOS

Year	31.03.2007	31.03.2006	31.03.2005
Debt-Equity Ratio	1.15	1.06	1.28
Long Term Debt-Equity Ratio	0.76	0.70	0.82
Current Ratio	2.06	2.03	1.39
TURNOVER RATIOS
Fixed Assets	1.64	1.44	1.71
Inventory	2.96	2.98	3.11
Debtors	6.53	7.53	10.22
Interest Cover Ratio	2.84	3.75	3.32
Operating Profit Margin(%)	15.81	16.53	15.23
Profit Before Interest And Tax Margin(%)	12.70	13.68	12.09
Cash Profit Margin(%)	10.15	12.00	11.00
Adjusted Net Profit Margin(%)	7.04	9.16	7.87
Return On Capital Employed(%)	9.87	10.86	13.64
Return On Net Worth(%)	11.61	14.71	19.89

LOCAL AGENCY FURTHER INFORMATION

Audited Financial Results for the Year 31.03.2008

(Rs. In millions)

Particulars	31.03.2008	31.03.2007
Net Sales / Income from operations	6342.691	4291.353
Other Income	47.179	34.176
Total Income (1+2)	6389.870	4325.529
Expenditure
Increase / decrease in stock in trade and work in progress	(430.135)	(240.342)
Consumption of raw materials	4784.482	3114.728
Employees Cost	137.543	90.325
Depreciation	178.250	134.059
Other Expenditure	1074.350	679.690
Total	5744.490	3778.470
Interest	319.973	192.252
Exceptional Items	173.186	0.000
Profit from Ordinary Activities before tax (3) – (4+5+6)	152.221	354.807
Tax Expense	50.681	67.755
Net Profit from Ordinary Activities after tax (7-8)	101.540	287.052
Add : Net Credit Availed	17.275	16.447
Extraordinary Items (net of tax expense)
Net Profit for the period (9+10+11)	118.815	303.499
Paid-up equity share capital (Face value of Rs. 10/- each)	345.141	325.141
Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year	2631.352	2426.536
Earning Per Share (a) Basic and diluted EPS before Extraordinary items for the period for the year to date and for the previous year (not to be annualized) (b) Basic and diluted EPS after Extraordinary items for the period for the year to date and for the previous year (not to be annualized)	0.003 0.003	0.009 0.009
Public shareholding Number of shares Percentage of shareholding	23901670 69.25	23528670 72.36

Notes:

1. The above audited financial results have been taken on record by the board in its meeting held on 30.06.2008
2. The subsidiary companies were not in operation during the year. Hence there is no separate consolidated results for the financial year and above results are standalone.
3. Dividend has been provided for Rs. 17.257 millions during the financial year 2007-08 at Rs. 0.50 per share@ 5% on 34514100 Equity shares of face value of Rs. 10/- each
4. The company is implementing the Automotive, Technical Fabrics weaving and processing project at meerut in the state of Uttar Pradesh. The project is expected to commenced production by December 2008.
5. Alps Energy Private Limited, a subsidiary of this company, has floated its subsidiary company on 10.03.2008 namely “Alps Uttarkhand Energy Private Limited” for promoting power projects in Uttarkhand.
6. The exceptional items represent marked to market losses on foreign currency derivative transactions.
7. Status of investor complaints during the quarter ended 31.03.2008

Pending at the beginning Nil, Received 04, Disposed off: 04, Pending at the end: Nil.

8. The figures for the previous year have been regrouped, recast and rearranged, wherever considered

necessary.

Reporting of Segmentwise Revenues, Results and Capital Employed under Clause 41 of the Listing Agreement

(Rs. In millions)

Sl. No.	Particulars	31.03.2008	31.03.2007
		Audited
A	Segment Revenues (Net sales / Income from each segment should be disclosed under this head)
1.	Home Furnishing and Fashion Accessories	3251.795	2450.922
2.	Yarn	2724.373	1583.616
3.	Architectural Products	398.823	362.715
	Total	6374.991	4397.253
	Less: Inter Segment Revenue	32.300	105.900
	Income from Operations	6342.691	4291.353
B	Segment Results (Profit Before Tax and Interest from each segment)
	Home Furnishing and Fashion Accessories	320.838	296.809
	Yarn	216.858	164.802
	Architectural Products	60.505	51.271
	Total	598.201	512.882
	Less: (i) Interest	319.973	192.252
	(ii) Other In-Allocable Expenditure	173.186	0.000
	(iii) Un-Allocable Income	47.179	34.176
	Total Profit Before Tax	152.221	354.806
C	Capital Employed (Segment Assets – Segment Liabilities)
	Home Furnishing and Fashion Accessories	2887.000	2227.660
	Yarn	6260.268	2051.240
	Architectural Products	326.465	294.032
	Total	9473.733	4572.932

History:

The company was incorporated on 11^th May, 1972 at Ghaziabad in Uttar Pradesh having Company Registration Number 3544.

The company which was formerly known as Alps Textiles Private Limited, began as partnership concern in 1962. It was converted into private limited company in 1972 and became a public limited company. Currently, K K Aggarwal is the Chairman and Sandip Aggarwal is the Managing Director. In April, 1995 the company came out with a public issue of Rs. 1.559 million equity shares at a premium of Rs. 40/- aggregating Rs. 77.900 millions to part-finance its expansion programme. The company manufactures and sells home furnishings, made-ups, window coverings and architectural products like venetian blinds, vertical blinds, artifical ceilings and drapery rods, etc. under the brand name Vista Levolor.

Subject initially began its operation in 1962 to manufacture fabrics and made ups and moderately increased the capacity to 100 looms to cater the demand of hotel industry and domestic market and started supplying goods to reputed hotels like Oberoi, Taj and ITDC.

In 1974 it started exporting its products to tap the overseas market. In 1977 the company became a recognised export house and in 1996 company earned the status of trading house and is continuously enjoying the status till date.

In 1987, Mr. Sandeep Agarwal, presently Managing Director of the company joined the group and initiated the diversification by adding interior decorative items. He introduced a new segment of wall fabrics and vertical blinds with an idea to introduce a new concept of decorative window coverings. The company achieved another milestone in 1989 by entering into an agreement with "Levolor Corporation", one of the leading manufacturers of window coverings, in USA.

The company subsequently introduced a new range of Venetian blinds under the brand name of Vista Levolor. It also introduced Aluminium Panels for False Ceiling.

The company set up a research and development wing under the guidance of Mr. K. K. Agarwal, the Chairman and Managing Director of the company on "Natural Dyes" to develop an Eco-Friendly range. Then in 1993, an agreement was made with Indian Institute of Technology (IIT), Delhi for sponsorship of research and development programme of Natural Dyes. A pilot plant was set up in the company for manufacturing of natural dyes and a range of natural dyed fabrics and made ups were launched in the market.

Overwhelmed by the success of the pilot plant and seeing the excellent response from overseas buyers, the company conceived the idea for setting up a 300 tonnes per year plant for manufacturing natural dyes. New infrastructure for dyeing of fibres, spinning, weaving and made-ups was created to meet the growing demand for natural dyes as well as natural dyed made-ups and other products.

Subject is engaged into manufacture and selling of home furnishings, made-ups, window coverings and architectural products like venetion blinds, vertical blnds, artifical ceilings, drapery rods etc. under the brand name Vista Levolor. 

It came out with a public issue (size Rs. 77.9 millions) in April 1995 to part finance its expansion programme.

The company has set up a spinning, weaving, processing and fabrication unit in Ghaziabad, Uttar Pradesh, which is producing vegetable dyes, cotton, yarn, and fabricate and dye cotton fabric and fibre. The company has been supplying to Park B Smith, US, for over 20 years.  

The window coverings division has a collaboration with Levolor Corporation, US, while the natural dyes have been developed in technical association with IIT, Delhi. The company has also recently entered into an exclusive collaboration with Franciaflex Company, France, for production of awnings, a new concept in elegant sun protection. The company has also purchased a process house in Noida and entered into an agreement with NHDC for setting up a process house to meet the growing requirement of eco-friendly textiles by exporters.  

The company has been steadily exporting to Japan, Canada, USA, Germany, UK, etc. Its products find a regular place in Harrods, Bloomingdales and Macy's departmental stores. 

In 2000, the company has started manufacturing of Pashmina Shawls and fashion accessories which was exported to Europe, Hong Kong, Japan and U.S.A. It has also enhanced its fibre dyeing capacity by adding a plant imported from Italy.

Investments have been made in Assam and Madhya Pradesh, manufacturing printed and specially processed fabrics for industrial applications. The company was awarded ISO 14001 certification and ISO 9002 certification by KMPG, The Netherlands, for conforming to environment friendly process. 

During 2001 the company has initiated modernization programme on which the spinning machines have been replaced with ring spinning machines. The Weaving capacities are also modernised with new state of art looms. A natural dyes for textiles was developed by the company. It has also signed MoU with IIT, Mumbai for setting up an SCFE plant based on technology developed by them.

Performance Review 

The financial performance during the year has been commendable. The company's turnover increased significantly to Rs. 4291.350 millions in the previous year from Rs. 2599.570 millions recording a growth of over 65%. Domestic sales flourished and recorded an increase of above 66% to Rs. 2026.710 millions while exports grew more than 59% to Rs. 913.830 millions. The Operating Profit increased from Rs. 431.160 millions in 2005-06 to Rs. 681.130 million in the current year. The Net Profit after Tax also increased from Rs. 238.030 millions in 2005-06 to Rs. 303.500 millions during the year

All the business segments recorded encouraging growth during the year. The largest business segment of the company viz. Home Furnishings and Fashion Accessories grew over 17% while Architectural Products segment demonstrated a robust growth of over 33%. The yarn segment grew the fastest on the back of additional capacities going into operation registering a stupendous growth of over 423%. 

The segment mix has undergone a significant change with the enhancement in operations of yarn capacities. Yarn segment increased its share in the company's revenues from 11.35% in FY06 to 36% in FY07. The significant growth of company's revenues also overshadowed the handsome growth of 33% recorded by the Architectural Products segment, as its share in the company's revenues fell marginally from 10.47% to 8.45%. The share of Home Furnishings and Fashion Accessories segment amounted to 55.55% as against 78.18% in the earlier year. 

The strong growth of the domestic market provided the necessary foundation for the company to expand its distribution of home furnishing products in the country. The construction and realty boom has also helped spur the growth of both architectural products as well as home furnishings segment. 

India has been experiencing significant increase in cotton production.

Today it has overtaken USA to claim the second rank in world cotton production after China. Improved productivity due to increased use of BT Cotton has driven this achievement. Despite a strong domestic demand, India continues to be a cotton surplus country. This position is expected to lend long term stability to cotton prices, although short term spikes may be observed from time to time. 

Capacity Enhancements 

The company had raised equity resources by a GDR issue made in March 2006.

The proceeds of the issue are being deployed for spinning of yarn and weaving and processing of decorative fabrics. Total cost of both the projects is estimated at Rs. 3940.000 million and financial closure was achieved by tying up term loans of Rs. 2975.000 million. 

The Spinning Project has been undertaken at Haridwar at Plot No. 1 B, Sector - 10, Integrated Industrial Estate - BHEL, District Haridwar, Uttaranchal. The project entails installation of 63,600 spindles for 42.46 tons per day of Compact Yarn and 15.89 tons per day of Combed yarn. The total estimated project cost is Rs. 3,310 million. The project is in an advanced stage of implementation with substantial machinery installation having been completed. Trial production has been initiated for the installed machines. It is estimated that commercial production will commence by end of Calendar Year 2007, much earlier than the original schedule of July 2008. 

The Weaving and Processing project envisages weaving of upholstery and decorative furnishing fabrics of 8.405 million square meters per annum by installing 32 jacquard looms and matching fabric processing facility. The estimated cost of project is Rs. 630.000 million. The project is scheduled to commence commercial production by July 2008. 

The company is also adding yarn doubling capacities at the existing Haridwar unit of the company. 

Products 

During the year, significant capacities of yarn spinning that commenced operations during the second half of 2005-06 also achieved improvement in utilization levels as production got streamlined progressively. Operations also commenced at the leased facilities of Jaspur spinning mill in May 2006 after necessary refurbishing. Jaspur mill lease is also valid for 10 years as is the case of Kashipur mill taken in August 2005. 

The fiber dyeing and yarn dyeing facilities are under installation at Haridwar and they are likely to come in operation within the current financial year. The commencement of dyeing operations at Haridwar will add value to the grey yarn presently being produced there. 

The company has also been experimenting with various kinds of fibers for spinning yarns. The company has been successfully working with Linen fiber and Bamboo fiber. Experiments are currently on with Milk fiber, Soya fiber as well as Ingeo (Corn) fiber. These new fibers help the company offer product differentiation even in what is largely a 'commodity' product segment of yarns. The company also offers organic cotton yarn. Use of organic cotton coupled with application of natural dyes gives a strong skin-friendly environment friendly appeal to the products. 

The product range in the fashion accessories segment has been significantly expanded by introducing a complete range of non-Pashmina items like Scarves, Sashes, Belts etc. This range has been introduced under the brand name Vista Fashions. 

The company is further expanding the fabric design team in preparation of the decorative fabric project presently under implementation. The strengthened design team is working on a variety of fabrics to create new designs and weave patterns for greater aesthetic appeal. 

Efforts have also been initiated to improve the coating process by using latest coating technologies. This modernization is expected to get completed by the end of the current financial year. With this modernization, the coated fabric produced will be lighter and have a better feel to create more beautiful window coverings. 

The changes in lifestyles caused by the increasing purchasing power on the back of high economic growth mean continuous changes in the product offering required in the domestic market. The company has enhanced its merchandise width by adding an eclectic range of printed bed linen products for the domestic market. The distribution network has been substantially enhanced and the company's home furnishing products today find placement in over 1,200 retail outlets across the country. 

Overseas Subsidiary Floatation 

In order to provide a boost to the export efforts of the company in North America, a wholly owned subsidiary company named Alps USA Inc. has been established in USA. The company got incorporated in April 2007. The operations of the company will commence during the current financial year.

This presence in USA will substantially enhance the business offering for the retailers located there. 

Industry Outlook 

The textile industry is enjoying the growth in the domestic demand on the back of high economic growth. The large construction boom is increasing the market for both architectural products and home furnishings. On the other hand, in international markets, the regulated Chinese currency continues to pose a stiff challenge to India's export efforts. Undoubtedly, the Dragon manufacturing juggernaut has overwhelmed the world markets. However, the leading retailers are recognizing the associated country risks as well as the ability of Indian companies to contribute to the design and aesthetic aspects of the products. As a result, big and small retailers are allocating increased portions of their sourcing requirements to India. The company hopes to gain significantly from this trend. 

Government Policy Initiatives

Textile continues to remain an important sector of the Indian economy and hence the industry is expected to enjoy necessary policy support for its growth and development. The most significant policy initiative has been introduction of Technology Upgradation Fund Scheme (TUFS) that makes available long term loans at preferred interest rates for undertaking modernization of existing capacities or addition of new capacities. During May 2007, the limit for exempted commercial samples has been raised; exemptions relating to machinery or equipments for effluent treatment plants have also been made available for handlooms sector and amendment has been made in the CENVAT credit rules, which will support the textile industry. 

The Union Budget for the year 2007-08 has made provision of Rs. 4250.000 millions for Integrated Textile Parks, up from Rs. 1890.000 millions in the earlier year. A provision of Rs. 9110.000 millions has also been made to facilitate continuation of Technology Upgradation Fund Scheme. However, this provision is considered to be inadequate and the Government seems to be re-drafting the scheme as it has put it in abeyance for the time being. In handloom industry also, there is an increase in the clusters and health insurance schemes by enlarging the applicability and allocation of funds from Rs. 2410.000 millions to Rs. 3210.000 millions. The outstanding credit limits have also been raised for small and medium enterprises. There is also reduction in duty on Polyster Fibres and Yarns from 10% to 7.5%. 

However, the strengthening Rupee has been a dampener on the exports efforts. Government has taken cognizance of this factor and recently announced enhancements in export incentives to counter the effects of adverse foreign exchange movement. This enhancement will come into effect retrospectively from April 1, 2007. 

Business:

The company is engaged in manufacturing and use of natural dyes for dyeing of textile fibres, conversion of dyed fibres into yarns, fabrics, home furnishing and other allied textile products.

The company is world's only naturally integrated textile mill.

The company has set up a spinning, weaving, processing and fabrication unit at Ghaziabad in Uttar Pradesh, which is producing vegetables dyes, cotton, yarn and fabricate and dye cotton fabric and fibre. The company has been supplying to Park B Smith, USA, for over 20 years. The window coverings division has collaboration with Levolor Corporation, USA, while the natural dyes have been in collaboration with Franciaflex company, France, for production of awnings, a new concept in elegant sun protection. The company has also purchased a process house in Noida, and entered into an agreement with NHDC for setting up a process house to meet the growing requirement of eco-friendly textiles by exporters. The company has been steadily exporting to Japan, Canada, USA, Germany and UK. Its products find a regular place in Horrods, Bloomingdales and Macy’s departmental stores.

In 2000, the company had started manufacturing of Pashmina Shawls and fashion accessories which was exported to Europe, Hong Kong, Japan and U.S.A. It has also enhanced its fibre dyeing capacity by adding a plant imported from Italy. Investments had been made in Assam and Madhya Pradesh, manufacturing printed and specially processed fabrics for industrial applications. The company was awarded ISO 14001 certification and ISO 9002 certification by KMPG, Netherlands, for conforming to environment friendly process.

During the year 2001 the company has initiated modernization programme on which the spinning machines have been replaced with ring spinning machines. The Weaving capacities are also modernised with new state of art looms. A natural dyes for textiles was developed by the company. It had also signed MoU with IIT, Mumbai for setting up an SCFE plant based on technology developed by them.

As Per Website Details

Subject established in 1962 proud today to be the leading manufacturers of Yarns, Home Furnishings, Natural Dyes, and Fashion Accessories which is well appreciated all across the globe. They also offers a whole range of Architectural products under the brand name "Vista" having the highest brand recall in its category and Fashion Accessories under the brand name "Le-Pashmina" in the domestic market with a wide Distribution network.

The strength lies in the infrastructure as they have 7 production facilities, which operate on state-of the-art production technology and mantain Environment Management Systems.

Mission

v To achieve a leading position in environment friendly textile products

v To create top-of-the-mind brand recall for its products

v To pursue innovation of new products

v To strengthen market reach in both the domestic and international markets so as to fully capture emerging opportunities

v To reach the customers directly for improved responsiveness to changing customer preferences

v To introduce own brands for home furnishing products in the international market

v Position, both in the domestic as well as the international market

Vision

To produce world class fashion, furnishing and décor products with the concurrent objective to protect the environment through the use of eco-friendly materials

Brands

"Global in vision, rooted in Indian values, the Company is driven by a performance ethic pegged on value creation for its multiple stakeholders.

First, they have aligned products that fall within a similar industry and serve a common customer base, which allows us to cross-promote and reach a wider consumer base.

Second, the divisions are able to share technical expertise and knowledge, which results in production cost savings and economies of scale in purchasing.

Third, the groupings give us insight into where they can improve the business through constant innovations and offer world-class products. Growth through constant innovations is of great importance as each step they make serves the customers.

Finally, the 2 brand operations represent a management organization that allows us internal efficiencies in reporting and management.

As they grow, they will continue to expand how they touch the consumers where they work, live and play. The growth will be guided by the business structure, which will assure that the innovations and developments deliver on the promises."

Vista, a brand operation of Alps Industries Limited has become a name synonymous to Interior Fashions. The range offers complete solutions to Window Fashions, Floor Fashions, Home Furnishings and Glazings to give a face-lift to the buildings.

The logic behind the VISTA logo

The logo encapsulates the principles of a company that firmly believes in surging ahead, exploring new fields, creating new products.

The door in sky blue reflects the temperament of a company that understands the vastness of opportunities available, and is ready and willing to venture ahead. The door epitomises the company's commitment towards making beautiful not only the home interiors but also the exteriors, and, above all, conserve the environment with products developed after years of painstaking research, making the planet Earth a better place to live in for the coming generations. Alps Industries Limited also pays a tribute to the indomitable instinct for beauty that exists in every woman. The outline of a woman on hanger symbolises a woman's perfectionist vision that has forever been an inspiration to the company's pursuit of fashion. The rose-pink reflects the company's commitment to aesthetics and elegance.

Director’s Profile

Mr. K.K. Agarwal

aged 64 years, is a qualified textile engineer. He commenced the business of textiles in the year 1962 in a partnership firm and later promoted Alps Industries to corporatize the business activities in 1972. He has an experience of more than 40 years in the textile and interior decorative industry. He was instrumental in exploring the export markets for the company's products and establishing long term relations with the company's buyers like Park B.Smith Inc., USA and Habitat, UK and France.

He has been the force behind the research and development activities on the development and standardization of natural dyes from agricultural waste and by-products. In this regard the company has also entered into an agreement with IIT, Delhi and TIFAC. He has also been instrumental in introducing the new product range with the concept of eco-friendly vegetable dyed-fabrics and decoratives.

Mr. Sandeep Agarwal

aged 41 years, joined the company in 1989 and is presently the Managing Director of the company. He was instrumental in diversifying into value added lines like the Vista range of interior decoratives and in developing a formal tie up with Levolor Corp., USA. He has been the force behind setting up the manufacturing facilities for venetian blinds, vertical blinds, vertical blinds, drapery rods, wooden laminated flooring etc. He also developed brands like Vista, for interior decoratives and Le-Pashmina, for fashion accessories. One of the areas of his responsibilities include marketing and business development. Under his leadership, the company has setup a nationwide distribution system for the company's products. This has helped the company in marketing its brands such as Vista throughout the country.

Mr. G.K. Arora, Director

Mr. G.K. Arora is a retired I.A.S. officer. He was Finance Secretary to the Government of India and Executive Director of International Monetary Fund. He was also the Chairman of the Indian Advisory Board of ANZ Grindlays Bank.

Mr. J.P. Kundra, Director

Mr. J.P. Kundra is a former Managing Director of State Bank of India and was also former Managing Director of State Bank of Bikaner & Jaipur, Ex-Vice Chairman of SBI Capital Markets Ltd. And former Chairman of Banking Services Recruitment Board. He was also the Chairman of the Indian Board of SANWA Bank. He has many years of experience in the banking and financial sector.

Mr. Rakesh Gupta, Director,

Mr. Rakesh Gupta is a businessman operating out of India and holds substantial experience in international trade.

Dr. M.L. Gulrajani, Director (Research and Development), is an eminent textile technologist. He is professor in the Department of Textile Technology and Dean of the Industrial Research and Development Unit at IIT, Delhi. Working jointly with IIT, Delhi and TIFAC (DST), Dr. Gulrajani, provides impetus to the fully standardized eco-friendly natural dyes project.

Mr. P.K.Rajput, Executive Director

Mr. P.K.Rajput aged about 52 years, has been associated with the company for 13 years. He has experience of 30 years in handling Commercial and Administrative affairs with prominent groups related to Textile Industry.

The product range includes the following:

Natural Dyes

· 100% Cotton Dyed Fibre (Dyed in Natural Dye / Other Eco-Friendly Dye)

· 100% Cotton Open End Yarn Grey / Dyed Melange; 4s to 20s English Count

· 100% Cotton Fabrics, Yarn Dyed Checks stripes, Chambray, Drills, Twills and Jacquards

· 100% Cotton Home Textile Made-Ups, Bedlinen / Kitchenlinen / Tablelinen Window Coverings / Floor Coverings

· Foxfibre TM (licensee of Foxfibre) Yarns, Fabrics and Made-Ups.

Contingent Liabilities

Contingent Liabilities	31.03.2007 (Rs. in millions)
Guarantees issued by bankers on behalf of company	8.350
Letters of Credit outstanding (trade)	18.318
Capital contracts remaining unexecuted (net of advances)	1032.735
Claims against the company not acknowledged as debt	20.131
Outstanding forward contract	176.817
Bills Discounted with Banks	27.907

Trade Terms

˜ Superlit Motto

˜ Venus Polymers

˜ Press Metal Industries

˜ Ram Chemicals Private Limited

˜ Verma Die Casting

˜ Modern Industrial Syndicate

˜ Maharani Paints Industries Private Limited

˜ Rock Stone Industries Private Limited

˜ Prem Sales Corporation

˜ Indcons Boilers Limited

˜ Creations Marketing Private Limited

˜ Lynx Printers (India) Private Limited

˜ Kailash Ribbon Factory Limited

˜ Dhir Industries

˜ Varnika Packaging

Fixed Assets

· Brand and Trade Marks,

· Land (Leasehold),

· Building,

· Plant and Machinery,

· Furniture and Fixtures,

· Vehicles,

· Office Equipment

· Computers.

As Per Website Details

The company was established in 1962. It is a manufacturer of Yarns, Home Furnishings, Natural Dyes, and Fashion Accessories which is well appreciated all across the globe. They also offers a whole range of Architectural products under the brand name "Vista" having the highest brand recall in its category and Fashion Accessories under the brand name "Le-Pashmina" in the domestic market with a wide Distribution network.

Their strength lies in their infrastructure as they have 7 production facilities, which operate on state-of the-art production technology and maintain Environment Management Systems.

Mission

To achieve a leading position in environment friendly textile products

To create top-of-the-mind brand recall for its products

To pursue innovation of new products

To strengthen market reach in both the domestic and international markets so as to fully capture emerging opportunities

To reach the customers directly for improved responsiveness to changing customer preferences

To introduce own brands for home furnishing products in the international market

Position, both in the domestic as well as the international market

Vision

To produce world class fashion, furnishing and décor products with the concurrent objective to protect the environment through the use of eco-friendly materials

Products:

The Product Range of this company covers Home Coordinates, the concepts about the organic cotton and how it is used in their products, Natural and Eco Dyes and Yarn.

· Yarn
Subject uses yarn of fine quality to produce quality product to the consumer.

· Home Furnishings

Exciting range of rugs, comforters, bed covers and sheets, bed skirts, pillow and cushion covers.

· Natural and Eco Dyes

Standardised environment friendly natural dyes are a result of 15 years pioneering research.

· Organic Cotton

Organic cotton is grown in the field without using any synthetic fertilizer or pesticides.

Brands

"Global in vision, rooted in Indian values, the Company is driven by a performance ethic pegged on value creation for its multiple stakeholders.

First, they have aligned products that fall within a similar industry and serve a common customer base, which allows them to cross-promote and reach a wider consumer base.

Second, the divisions are able to share technical expertise and knowledge, which results in production cost savings and economies of scale in purchasing.

Third, the groupings give them insight into where they can improve their business through constant innovations and offer world-class products. Growth through constant innovations is of great importance as each step they make serves their customers.

Finally, their 2 brand operations represent a management organization that allows them internal efficiencies in reporting and management.

As they grow, they will continue to expand how they touch their consumers where they work, live and play. The growth will be guided by their business structure, which will assure that their innovations and developments deliver on their promises."

Vista, a brand operation of Alps Industries Limited has become a name synonymous to Interior Fashions. Their range offers complete solutions to Window Fashions, Floor Fashions, Home Furnishings and Glazings to give a face-lift to the buildings.

The logic behind the VISTA logo

The logo encapsulates the principles of a company that firmly believes in surging ahead, exploring new fields, creating new products.

The door in sky blue reflects the temperament of a company that understands the vastness of opportunities available, and is ready and willing to venture ahead. The door epitomises the company's commitment towards making beautiful not only the home interiors but also the exteriors, and, above all, conserve the environment with products developed after years of painstaking research, making their planet Earth a better place to live in for the coming generations. Subject also pays a tribute to the indomitable instinct for beauty that exists in every woman. The outline of a woman on hanger symbolises a woman's perfectionist vision that has forever been an inspiration to the company's pursuit of fashion. The rose-pink reflects the company's commitment to aesthetics and elegance.

Le Pashmina provides a wide range of shawls in enchanting shades and patterns from the master theyavers of India. From elegant plain shawls to splendid Jamawar and from plain Pashmina to embroidered Pashmina, all are handpicked to present an unmatched range online.

Press Clipings:

Alps Industries to set up new plant The Bureau

Mumbai , Aug. 9

Subject engaged in manufacture and export of home furnishings, has finalised plans to set up a Rs 1100.000 millions spinning plant, as part of its expansion programme to make use of the emerging opportunities in the export market in the wake of the dismantling of the quota system after January 2005.

According to Mr Sandeep Agarwal, the company's Managing Director, the company has zeroed on in Kathau in Jammu for locating the proposed plant. Designed to have a capacity of 45 tonnes per day, the plant will be used to cater to the export as well as domestic markets.

"They had examined various locations in Himachal Pradesh, Jammu and Kashmir and Uttaranchal, before finalising Kathau. As a spinning plant is a high power consuming facility, they were looking for States that could provide good quality power at cheaper rates," he said.

Alps, which has a market share of about 35 per cent in the window covering segment and owns the brand `Vista' in the home furnishing segment, has been exporting its products to North America.

"The immediate focus is now on transforming the company into an outsourcing hub. They see the market for outsourcing in this sector expanding in India, as MNC retail chains in Europe and North America are increasing looking at India for outsourcing. The home furnishings have gained significant acceptance in Europe and the US, especially due to the eco-friendly approach of using vegetable dyes for textiles," according to Mr Agarwal.

The company, which markets its products through leading chains such as JC Penny, Springs, Walmart and Homestead, is in advanced stage of negotiations with several foreign buyers for a large order of natural dyes worth Rs 300.000 millions.

The company operates an integrated textile mill at Delhi, which undertakes spinning, weaving, processing and fabrication for conversion of cotton into ready-to-use home furnishing products, besides manufacturing vegetable dyes using its own technology.

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 :

The 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.

The 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. 45.77
UK Pound	1	Rs. 80.67
Euro	1	Rs. 64.20

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	9
--PROFITABILIRY	1~10	7
--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	YES
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--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 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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, they have no basis upon which to recommend credit dealings	No Rating

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