MIRA INFORM REPORT

Report Date :

27.04.2011

IDENTIFICATION DETAILS

Name :	SUDITI INDUSTRIES LIMITED
Registered Office :	A-2 Shah and Nahar Industrial Estate, Unit No.23/24, Dhanraj Mills Compound, Lower Parel, Mumbai – 400013, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	12.09.1991
Com. Reg. No.:	11-063245
CIN No.: [Company Identification No.]	L19101MH1991PTC063245
TAN No.: [Tax Deduction & Collection Account No.]	MUMS34968D
PAN No.: [Permanent Account No.]	AADCS0967L
Legal Form :	A Public Limited Liability Company. The Company’s Share are Listed on the Stock Exchange but not traded, yet.
Line of Business :	Manufactures of Cotton Knitted Fabric and Polar Fleece Fabric.

RATING & COMMENTS

MIRA’s Rating :

B (32)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 580000
Status :	Moderate
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

LOCATIONS

Registered Office :	A-2 Shah and Nahar Industrial Estate, Unit No.23/24, Dhanraj Mills Compound, Lower Parel, Mumbai – 400013, Maharashtra, India
Tel. No.:	91-22-24954404/ 24954405/ 24954407/ 24939371/ 72
Fax No.:	91-22-24950406
Email :	suditi@vsnl.com
Administrative Office/ Factory 1:	C/253/254, MIDC, TTC Industrial Area, Pawane Village, Navi Mumbai – 400705, Maharashtra, India
Tel. No.:	91-22-27683480
Knitting Division/ Factory 2:	C-3/B MIDC, TTC Industrial Area, Pawnw Village, Turbhe, Navi Mumbai – 400705, Maharashtra, India

DIRECTORS

As On : 31.03.2010

Name :	Mr. Anand Agarwal
Designation :	Chairman
Name :	Mr. Pavan Agarwal
Designation :	Managing Director
Name :	Mr. A Indu Sekhar Rao
Designation :	Director
Name :	Mr. Sushil Kumar Kasliwal
Designation :	Director
Name :	Mr. Vivek Gangwal
Designation :	Director

KEY EXECUTIVES

Name :	Mr. H. Gopalkrishnan
Designation :	V. P. Finance and Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2010

Category of Shareholder	Total No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3851700	45.21
Sub Total	3851700	45.21
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	3851700	45.21
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	1100	0.01
Sub Total	1100	0.01
(2) Non-Institutions
Bodies Corporate	748927	8.79
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	2058073	24.16
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	1684500	19.77
Any others (Specify)	175700	2.06
Non Resident Indian	174700	2.05
Clearing Members	1000	0.01
Sub Total	4667200	54.78
Total Public shareholding (B)	4668300	54.79
Total (A)+(B)	8520000	100.00

BUSINESS DETAILS

Line of Business :

Manufactures of Cotton Knitted Fabric and Polar Fleece Fabric.

Products :

Products Descriptions	Item Code No
Knitted Cotton Fabric	60029200
Knitted Man Made Fabric	60029300

PRODUCTION STATUS (As On 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Processed Fabrics	MT	--	4050	2651.02
Garments	PCS	--	1200000	1114654

GENERAL INFORMATION

No. of Employees :

100 (Approximately)

Bankers :

· Union Bank of India

· HDFC Bank Limited

· Indian Overseas Bank

Facilities :

SECURED LOAN	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Loan from Banks
Cash Credit	21.107	0.000
Total	21.107	0.000

Notes :

The prime security of Cash Credit loans availed from Union Bank of India is through hypothecation of all tangible moveable assets including raw materials, semi finished goods, finished goods and present and future book debts etc. The said facility is further secured by exclusive first charge on all the Company's moveable and immovable properties both present and future.

Banking Relations :	--
Auditors :
Name :	Chaturvedi and Company Chartered Accountant
Address :	81, Mittal Chambers, 228 Nariman Point, Mumbai – 400021, Maharashtra, India

CAPITAL STRUCTURE

As On : 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
18000000	Equity Shares	Rs. 10/- each	Rs. 180.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8520000	Equity Shares	Rs. 10/- each	Rs. 85.200 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		85.200	85.200	85.200
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		61.023	52.568	47.065
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		146.223	137.768	132.265
LOAN FUNDS
1] Secured Loans		21.107	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		21.107	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		167.330	137.768	132.265
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		61.746	60.439	50.859
Capital work-in-progress		4.042	4.041	4.082
INVESTMENT		0.234	0.234	0.234
DEFERREX TAX ASSETS		17.080	17.080	17.080
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	44.821	25.788	13.565
	Sundry Debtors	67.530	58.498	50.922
	Cash & Bank Balances	5.807	17.716	52.652
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	53.952	64.832	43.281
Total Current Assets		172.110	166.834	160.420
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	43.363	51.933
	Other Current Liabilities	44.519	58.927	100.410
	Provisions	0.000	0.000	0.000
Total Current Liabilities		87.882	110.860	100.410
Net Current Assets		84.228	55.974	60.010
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		167.330	137.769	132.265

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales Export	16.003	10.560	17.642
		Sales Others	287.789	222.007	218.985
		Other Income	9.815	12.677	6.974
		TOTAL (A)	313.607	245.244	243.601
Less	EXPENSES
		Raw Material Consumed	118.759	91.124	101.825
		Manufacturing Expenses	104.733	97.404	101.177
		Payment to Provisions for Employees	28.158	31.332	24.583
		Increase/(Decrease) in Finished Goods	0.160	(7.836)	(0.733)
		Administrative Expenses	44.128	28.481	25.975
		Write Back of Excess Provision	0.000	(11.619)	0.000
		Settlement of Claims	0.000	4.027	14.943
		Loss on Disposal of structure	0.000	0.000	11.750
		Written Back of Waiver Under one time Settlement	0.000	0.000	(280.495)
		TOTAL (B)	295.938	232.913	(0.975)
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		17.669	12.331	244.576
Less	FINANCIAL EXPENSES (D)		0.907	0.000	4.434
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		16.762	12.331	240.142
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.507	4.893	4.476
	PROFIT BEFORE TAX (E-F) (G)		10.255	7.438	235.666
Less	TAX (H)		1.799	1.934	1.071
	PROFIT AFTER TAX (G-H) (I)		8.456	5.504	234.595
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		52.569	47.065	(187.530)
	BALANCE CARRIED TO THE B/S		61.025	52.569	47.065
	EXPORT VALUE		13.629	9.399	NA
	IMPORTS
		Stores & Spares	1.850	1.255	NA
		Capital Goods	2.546	0.791	NA
	TOTAL IMPORTS		4.396	2.046	NA
	Earnings Per Share (Rs.)		0.99	0.65	27.53

QUARTERLY RESULTS

(Rs. In Millions)

PARTICULARS	30.06.2010	30.09.2010	31.12.2010
	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	66.750	83.790	67.550
Total Expenditure	62.840	80.970	74.440
PBIDT (Excl OI)	3.910	2.820	(6.890)
Other Income	1.130	3.040	1.320
Operating Profit	5.040	5.860	(5.570)
Interest	0.720	0.770	0.980
Exceptional Items	0.000	0.000	0.000
PBDT	4.320	5.090	(6.550)
Depreciation	1.720	1.830	1.820
Profit Before Tax	2.600	3.260	(8.370)
Tax	0.400	0.690	(1.090)
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	2.200	2.560	(7.280)
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	2.200	2.560	(7.280)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.70	2.24	96.30
Net Profit Margin (PBT/Sales)	(%)	3.38	3.20	99.59
Return on Total Assets (PBT/Total Assets}	(%)	4.09	3.04	111.542
Return on Investment (ROI) (PBT/Networth)		0.07	0.05	1.78
Debt Equity Ratio (Total Liability/Networth)		0.75	0.80	0.76
Current Ratio (Current Asset/Current Liability)		1.96	1.50	1.60

LOCAL AGENCY FURTHER INFORMATION

Operations:

There is substantial improvement in the performance during the year in comparison to previous year. The global economic conditions continue to remain subdued for the major part of the year. However some amount positive signs of economic recovery were seen in U.S.A and Japan. Further the performance of the Garment unit has also shown some remarkable improvement in terms of productivity and profitability. The overall turnover has registered a growth level of around 31% in comparison to previous year. Similarly the Garment unit have also recorded an increase in the turnover from Rs. 56.600 millions to Rs. 106.700 millions thus registering growth of almost 89% in comparison to last year.

The process house as well as garment units are now fully stabilized and the Company is now poised to take full advantage of its strength in the production of quality fabrics and Garments. Based on these strengths, the company is now venturing into Retail as well as Buying House activities. These business activities will enable the company to utilize its facilities to derive the maximum benefit in terms access to market as well as synergy in the production and capacity utilization. Further regarding the pending EPCG License matter, the company continues to pursue with Joint DGFT, Mumbai to resolve the issue at the earliest.

Export Sales:

Even though there is some significant increase in the exports sale during the year under review in comparison to previous year, the overall export performance is not as per the anticipated levels. The recessionary trend in the U.S. and Europe had severe impact on the export performance of most of the textile units particularly in the garment sector. In spite of some stimulus measures announced by the government for the textile sector, the impact of the same is yet to reflect in the workings of the garment units in the country. Apart from this the unit value realization of the export orders are far from the breakeven levels for their units to execute under the prevailing conditions. Even the foreign exchange market is still not conducive for the exporters as the US $ rates are not very attractive and stable.

The company is now taking all possible measures as the global conditions are showing signs of recovery particularly in the U.S.A and Japan. However Europe is still reeling under certain kind of recessionary conditions particularly in Greece, Spain etc .and the huge stimulus measures announced to bail out these economies will have some positive impact on the exports to these countries in the coming years. Considering all these aspects, the company is now directly taking exports Business from all over the world through its new Apparel Buying House division. This new division would be sourcing orders for arranging the supply through various manufacturers apart from providing business to the company's garment division on selective basis depending upon the profitability and volume of business.

Apart from this the company is also exploring the opportunities to expand its client base in African and Latin American countries including Mexico etc. to increase the scope of the export business. India is gradually becoming a global hub for sourcing Garments and Apparels by buyers from all over the world. In view of these emerging trends in the global market, the company has drawn up plans to increase its exports business by manifold in the coming years. Apart from this the company has installed some additional machinery in the printing, embroidery and other sections to cater to the requirements of some of the best international brands in the premium segments. Eventually the company is planning to export at least 50% of its production capacity to the various buyers all over the world with different product ranges.

Management Discussion and Analysis Report.

Management discussion and analysis report reflecting the performance and outlook including the future prospects for the Company is presented herewith.

Overview:

India's economy grew at its fastest pace in six months in the quarter through March 2010, fuelled mainly by government and consumer spending. The 8.6 percent expansion in the fourth quarter of the fiscal year 2009/10 was broadly in line with a median forecast of 8.7 percent and lifted the annual average growth rate for the full fiscal year to a slightly better-than-expected 7.4 percent.

The rapid acceleration in the world's second-fastest growing major economy after China is boosting consumer demand far ahead of what can be met by existing supply capacity, which means that inflation as well as high-levels of domestically held debt is serious concerns for the Government. According to the latest estimates available on the Index of Industrial Production (IIP), almost all sectors have registered growth in Q3 of 2009-10.

Small and medium enterprises (SMEs) are also expected to contribute 22 per cent to India's Gross Domestic Product (GDP) by 2012, up from about 17 per cent at present, according to a survey. Small and Medium Enterprises (SMEs) in the textile sector need to put efforts for increasing productivity and market share. Textile industry should devote more to decentralization and desegregation. Each and every small and medium enterprise (SMEs) that contribute to the pool of textiles should find ways for increasing productivity and the market share. Therefore the textile industry needs to look beyond the focused markets.

The growth of garment sector, which has maximum scope for value addition, is today hampered because of number of constraints. Despite the fact that in India the total production cost of ring-spinning and knitting and weaving of ring yarn fabrics are the lowest in the world, India does not have a significant share in value added garments in global trade (only 3%). Therefore the policy, should focus on making India a manufacturing hub of value added garments and ensure that country is able to cultivate 20 internationally famous brands. The aim of the policy would be to achieve 15 to 20% share of these branded items in their exports in next five years. Since fibre consumption in India is very low compared to other countries, there is a need to encourage the domestic textile demand, expanding reach in rural areas and exploring new products, Also, the policy should try to achieve maximum consolidation of small and medium enterprises in the textiles and garment sector so that country can reap the benefits of economies of scale in the global supply chain. Currently, the domestic industry is dominated by small and medium enterprises and a number of them in the unorganized sector and consolidation will help the industry in realizing its true potential. Another important aspect of the policy would be to achieve greater energy efficiency and emission reduction in textile industry. For this, industry would require greater technological support to achieve lower emission and higher energy efficiency targets and to eliminate out dated technologies.

Concerned over the fragile recovery in textiles sector and apprehensive of the impact of Rupee appreciation in 2010, continuation of Stimulus Package for textiles industry for the year 2010 is necessary

Significant Financial Events of the Year.

The Company has recorded operating profit of Rs. 8.455 millions against the operating loss of Rs.2.088 millions in previous year. There is a substantial improvement in the performance due to stabilization in the production levels of the garment unit. Apart from this there is remarkable improvement in the performance of the process house after the completion of the up gradation programme. The Company has added some more balancing equipment and Machines in the current year to achieve optimum level of the Production capacity in the garment as well as process house.

However the Export Performance of the Company was not in line with the anticipated levels due to sluggish market conditions in USA and Europe. The company has taken some additional measures to increase the scope of Exports. However considering the current trend in the domestic market, the company is now taking some active interest to enhance the scope of local business particularly in the finished garments. The company has taken decision to set up retail chain of shops in different parts of the country to sell the garments directly to the consumers. Apart from this the company has also started Apparel Buying House division to source materials for overseas buyers apart from providing export business opportunity to the company particularly for the Garment unit. This will help the Company to expand the volume of Export sales to a considerable extend in the current year.

Industry Structure and Development:

The Indian Textiles Industry has an overwhelming presence in the economic life of the country. Thus, the growth and all round development of this industry has a direct bearing on the improvement of the economy of the nation. The Indian textiles industry is extremely varied, highly fragmented, with the hand-spun and hand-woven sector at one end of the spectrum, and the capital intensive, sophisticated mill sector at the other. The decentralized power looms/ processing, hosiery and knitting sectors form the largest section of the textiles sector. The close linkage of the Industry to agriculture and the ancient culture, and traditions of the country make the Indian textiles sector unique in comparison with the textiles industry of other countries. This also provides the industry with the capacity to produce a variety of products suitable to the different market segments, both within and outside the country.

The early-recorded history of textiles all over the world is the same. Every single step of preparing a textile item was manual. There was no mass Production for commercial purposes. This situation remained unchanged till the industrial revolution took place in the 18th century in Europe when the era of mass production arrived. The worst casualty of this revolution was the environment. Man has now realized this fact at the cost of wasting more than two valuable centuries. It is no longer adequate to have a finished product to be safe only to human beings, but the product has to be environmentally safe during its entire life cycle and even beyond. The challenges facing the textile industry have intensified during the last decade. Therefore the cost of complying with the environmental laws and regulations are becoming a major challenge for the industrial units particularly the processing units.

At present; the textile industry is undergoing a substantial re-orientation towards other than clothing segments of textile sector, which is commonly called as technical textiles. It is moving vertically with an average growing rate of nearly two times of textiles for clothing applications and now account for more than half of the total textile output. The processes in making technical textiles require costly machinery and skilled workers. The application that comes under technical textiles are filtration, bed sheets and abrasive materials, healthcare upholstery and furniture, blood-absorbing materials and thermal protection, adhesive tape, seatbelts, and other specialized application and products.

The export of garment and accessories and ethnic designs materials is an important factor for the global fashion industry. Thus the industries have numerous factors to carve the strength, in terms of cost-effectiveness in manufacture and raw material, quick adjustment to what will sell, and a vast and relatively inexpensive skilled work force. India offers the international fashion houses competitive prices, shorter lead times, and a virtual monopoly in embellishments. Fashion is identified more than a dress. The recent introduction of accessories has revitalized the trends for production. The tailor-made-garments, private labels are emerging very well and manufacturing specific garments according to needs and these private labels are 25 per cent to 30 per cent cheaper than branded labels. These private labels are eying in retail sector. Therefore the Retail sector is likely to witness a major revolution in the coming years. The Process houses and garment units need to have adequate resources and infrastructure facilities to enter into this chain of business to take full advantage of this new business opportunity in the domestic market

With growing dependence on computers and related technologies, the industry is betting on technology as one of the major growth factors for the industry. In fact, it has evolved gradually in terms of technology adoption and has reached a critical mass today. From pedal-operated machines in the 60s, the industry moved on to power operated machines and steam presses in the mid-80s, started assembly line manufacturing in the late 80s and then entered the phase of using computerized machines. Overall this assumes a greater importance, considering the Policy of achieving over $25 billion garment exports from India by 2011.

The Company has already taken effective measures in anticipation of these developments and accordingly has made its entry into retail as well as apparel buying activities. Further flexibility in the manufacturing and quick response to the fast changing trends and fashions enables the Company to demonstrate its capabilities in the new emerging market conditions.

Performance

The Company has maintained the growth momentum in the performance levels if not as per the anticipated levels. The major reason is due to lower export sales than the projected levels. There are some significant improvements in the functioning of the garment unit. However the company is still expecting some improvement in the profitability levels which according to the current year trends and indications can be made possible once the higher end premium brand garment varieties are made in the unit.

The Company has registered improvement in the income levels and correspondingly the Company has also recorded improvement in the performance by registering the operating profit of Rs. 8.455 millions against the operating loss of Rs. 2.088 millions in the previous year. With Retails operations and also based on the anticipated economic boom in the textile industry, the company is hopeful of achieving the projected levels of business in the current year.

Outlook

There is a sense of optimism and confidence prevailing in the industry. As a result the industry is expected to grow at the rate of 16 per cent in value terms in the next five years. The policy measures initiated by the Government are showing striking results. Investment has increased significantly in the textiles sector, and is expected to touch Rs.1506000.000 millions by 2012. This enhanced investment will generate 17.37 million jobs (comprising 12.02 million direct and 5.35 million Indirect jobs) and additional demand in the local market by 2012. Today, the industry is increasingly embracing modern technology and work processes, becoming more globally competitive, building strong brand equity for its products, and consistently achieving higher 0growth rates than ever in its long history. The challenges are many. The Government is committed to transform what is today an emerging or sunrise sector, into a developed industry.

Therefore the future outlook for the Textile sector particularly for Garment is very encouraging and the timely entry into the Retail sector will further enhance the scope for their company to grow and improve the profitability levels. The Company understands this situation and accordingly necessary measures are taken at various levels to take maximum benefit out of the anticipated boom in the textile sector. "Think globally, act locally "is the slogan of tomorrow for the world textile industry

UNAUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE FOURTH QUARTER ENDED 31.12.2010

(Rs. in millions)

Sr. No.	Particular	Unaudited	Unaudited
		Quarter ended 31.12.2010	Quarter ended 31.12.2010
1.	Gross Sales / Income
	a. Net Sales / Income from Operations (Net of Excise and Discounts)	67.546	218.082
	b. Other Operating Income	--	--
	Total Income (a+b)	67.546	218.082
2.	Expenditure
	a) (Increase) / Decrease in Stock in Trade and Work In Process	(13.697)	(26.382)
	b) Consumption of Raw Materials (Net)	40.732	111.131
	c) Purchase of Traded Goods	(3.433)	0.000
	d) Employee Cost	9.333	24.433
	e) Depreciation	1.816	5.360
	f) Other Expenditure	35.257	90.536
	g) Processing and Labour Charges	6.252	18.543
	h) Total Expenditure (a to f)	76.259	223.621
3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	(8.713)	(5.539)
4.	Other Income	1.323	5.492
5.	Profit Before Interest and Exceptional Items (3+4)	(7.390)	(0.047)
6.	Interest	0.979	2.473
7.	Profit After Interest but before Exceptional Items (5-6)	(8.369)	(2.520)
8.	Exceptional Items	--	--
9.	Profit from Ordinary Activities before Tax (7+8)	(8.369)	(2.520)
10.	Tax Expense
	a) Current tax	(1.090)	--
	b) Deferred tax	--	--
11.	Net Profit from Ordinary Activities after Tax (9-10)	(7.279)	(2.520)
12.	Extraordinary Item (net of expense)	--	--
13.	Net Profit for the period (11-12)	(7.279)	(2.520)
14.	Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	85.200	85.200
15.	Reserves Excluding Revaluation Reserve	--	--
16.	Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised
	a) Basic and diluted EPS before extraordinary items	(0.85)	(0.30)
	b) Basic and diluted EPS after extraordinary items	(0.85)	(0.30)
17.	Public Shareholding
	-Number of Shares	4668300	4668300
	- Percentage of Shareholding	54.79%	54.79%
18.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	Nil	Nil
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	Nil	Nil
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	Nil	Nil
	b) Non Encumbered
	- Number of Shares	3851700	3851700
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100%	100%
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	45.21%	45.21%

Notes:

1. The statement was placed before the Audit Committee for review and taken on record by the Board at its meeting held on 12^th February, 2011. Further the Auditors have also performed the “Limited Review” of the above financial results.

2. Deferred tax assets / liability if any and provision under the revised AS-15 will be dealt with appropriately at the year end.

3. The performance for the December end 2010 quarter is adversely affected due to the loss generated from the new Retail Divisions business activities.

4. Status of investors complaint :- Opening (0) New (1) Disposed (1) Closing (0)

5. Figures are re-grouped / re-arranged and re-classified wherever necessary.

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. in millions)

Sl. No.	Particulars	Quarter Ended	Quarter Ended
		31.12.2010	31.12.2010
		(Un-audited)	(Un-audited)
1	Segment Revenue (Net of Excise & Other Taxes)
	a) Local Market	67.546	218.082
	b) Export Market	--	--
	Net Sales / Income from Operation	67.546	218.082
2	Segment Results (Net Profit(+)/Loss(-) before Tax & Interest from each Segment)
	a) Local Market	1.459	10.841
	b) Export Market	--	--
	Total Profit (+) / Loss(-) before Tax	1.459	10.841
	Less :Interest	0.481	1.884
	Less : Other Unallocable Expenses and Extra Ordinary Items	8.257	11.477
	Net Profit / Loss After Tax	(7.279)	(2.520)

FIXED ASSETS:

• Land (Leasehold)
• Building
• Plant and Machinery
• Furniture and Fixture
• Office and Other Equipment
• Electrical Installation
• Vehicles

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.44.59
UK Pound	1	Rs.73.44
Euro	1	Rs.64.81

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		32

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.