MIRA INFORM REPORT

Report Date :

28.01.2011

IDENTIFICATION DETAILS

Name :	BIRLA COTSYN (INDIA) LIMITED

Registered Office :	Dalamal House, 1^st Floor, J.B. Marg, Nariman Point, Mumbai-400021, Maharashtra

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	24.09.1941

Com. Reg. No.:	11-003429

CIN No.: [Company Identification No.]	L17110MH1941PLC003429

Legal Form :	A Public Limited Liability Company. The Company’s Shares are listed on Stock Exchange.

Line of Business :	Manufacturer and Exporter of Synthetic blended ring spun yarn.

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 11000000

Status :	Moderate

Payment Behaviour :	Slow but Correct

Litigation :	Clear

Comments :	Subject is a part of Yash Birla Group. It is an established company having moderate track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. In view of strong holding, the company can be considered normal for business dealings at usual trade terms and conditions.

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

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

INFORMATION PARTED BY

Name :	Mr. Sanjay
Designation :	Account Manager
Contact No.:	91-22-26558543
Date :	27.01.2011

LOCATIONS

Registered Office :	Dalamal House, 1^st Floor, J.B. Marg, Nariman Point, Mumbai-400021, Maharashtra, India
Tel. No.:	91-22-22821173/ 74/ 66153392
Fax No.:	91-22-22047835
E-Mail :	narayanan@yashbirlagroup.com lovelina@yashbirlagroup.com
Website :	http://www.birlacotsyn.com
Area :	1500 sq.ftl. (Owned)

Corporate Office :	The Regency, Office No. 11 and 12, 1^st Floor, National Library Road, Near Nandi Cinema, Bandra (West), Mumbai-400050, Maharashtra, India
Tel. No.:	91-22-26405866/ 0067/ 66719956
Fax No.:	91-22-26400068

Factory 1 :	Cotton Division Malkapur Industrial Area, Plot No. C-611, Dasarkhad, Malkapur-443101, Maharashtra, India
Tel. No.:	91-7267-224590
Fax No.:	91-7267-224590
E-Mail :	bcilmalkapur@redffmail.com

Factory 2 :	Synthetic Division A/82, M.I.D.C., Industrial Area, Khamagaon-444303, District Buldhana, Maharashtra, India
Tel. No.:	91-7263-277116/ 277122
Fax No.:	91-7263-277123
E-Mail :	vsyntex@yahoo.com

Factory 3 :	Shree House, Shegaon Road, Khamgaon, Dsitrict Buldhana, Maharashtra, India

Factory 4 :	Post Box No. 1, Gatanji, District Yavatmal, Maharashtra, India

Factory 5 :	Near Cotton Market, Parola Road, Dhule-424004, Maharashtra, India

Overseas office :	1^st Floor, 87-89 Baker Street, London- WIU 6RJ
Tel. No.:	00-44-20-74868270
E-Mail :	venkat@implexltd.com

DIRECTORS

As on 22.09.2010

Name :	Ms. Priya Bhushan Bhardwaj
Designation :	Chairman Cum Managing Director
Address :	Regency Villa, Outer Circle, Regents Park, London-NW14HB, United Kindom
Date of Birth/Age :	11.09.1937
Date of Appointment :	25.01.2007

Name :	Mr. Yashovardhan Ashok Birla
Designation :	Co-Chairman and Director
Address :	Birla House, 21, Mount Pleasant Road, Mumbai-400006, Maharashtra, India
Date of Birth/Age :	29.09.1967
Date of Appointment :	16.05.1995

Name :	Mr. Palaparthy Venkata Murthy
Designation :	Director
Address :	A-4, Sagar Darshan, Opposite Carter Road, Bandra (West), Mumbai-400052, Maharashtra, India
Date of Birth/Age :	21.04.1950
Date of Appointment :	01.06.2006

Name :	Mr. Navinchandra Chhanganlal Shah
Designation :	Director
Address :	1 Doughty Street, London- WCN2PH, United Kingdom.
Date of Birth/Age :	12.10.1938
Date of Appointment :	03.08.2007
Other Directorship:	Sunglag Power Limited Sunflag Special Steel Limited PSJ Alexander and Company Limited Patel Shah and Joshi Limited Abbot Management Services Limited

Name :	Mr. Mohan Motiram Jayakar
Designation :	Director
Address :	11-12, Makani Manor, Peddeer Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	08.10.1951
Date of Appointment :	06.12.2007
Other Directorship:	Photoquip India Limited Everest Kanto Cylinder Limited Satyagiri Shipping Company Limited Mysore Petrochemicals Limtied Shree Ram Urban Infrastructure Limited

Name :	Mr. Mohandas Shenoy Adige
Designation :	Director
Address :	2, Pearl, Plot-163, Sector 28, Navi Mumbai-400073, Maharashtra, India
Date of Birth/Age :	07.11.1944
Date of Appointment :	03.08.2007

Name :	Mr. Sanjay Mahadeolal Agarwal
Designation :	Director
Address :	131 B Elmsted, Avenue Wembley- HA98NT, Unted Kingdom
Date of Birth/Age :	28.09.1967
Date of Appointment :	25.01.2007

Name :	Mr. Upakr Singh Kohli
Designation :	Director
Address :	Flat No. 202, Chnar Building, 21^st TPS Road, Bandra (West), Mumbai-400050, Maharashtra, India
Date of Birth/Age :	18.08.1947
Date of Appointment :	10.08.2010

Name :	Mr. Yogendra Premkrishna Trivedi
Designation :	Director
Address :	Mistry Manor, 62/A, Napensea Road, Mumbai-400006, Maharashtra, India
Date of Birth/Age :	06.01.1929
Date of Appointment :	06.12.2007
Date of Ceasing:	30.06.2010

Name :	Mr. Alok Bhardwaj
Designation :	Alternate Director of P B Bhardwaj)

KEY EXECUTIVES

Name :	Mr. Sanjay
Designation :	Account Manager

Name :	Mr. O P Jain
Designation :	Senior Vice President, (Project and Operation)

Name :	Mr. Debashis Poddar
Designation :	Chief Executive Officer/ Manager
Address :	1005/6, Whspering Plams 6A, Akurli Road, Lokhandwala Township, Kandivali (East), Mumbai-400101, Maharashtra, India
Date of Birth/Age :	08.01.1968
Date of Appointment :	28.01.2010

Name :	Mr. Shrikant Charl
Designation :	Chief Financial Officer

Name :	Mr. Tushar Dey
Designation :	Secretary
Address :	303, EMP 34, Evereshne Millenium Apartments, Thakur Village, Kandivali (East), Mumbai-400101, Maharashtra, India
Date of Birth/Age :	21.11.1963
Date of Appointment :	11.04.2007

Audit Committee :	Mr. Navinchandra Shah- Chairman Mr. Mohandas Shenoy Adige- Member Mr. P V R Murthy- Member

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2010

Names of Shareholders	No. of Shares	Percentage
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	252,000	0.01
Bodies Corporate	235,512,444	9.19
Any Others (Specify)	3,658,320	0.14
Trusts	2,537,280	0.10
Directors/Promoters & their Relatives & Friends	1,121,040	0.04
Sub Total	239,422,764	9.35
(2) Foreign
Bodies Corporate	238,101,240	9.29
Sub Total	238,101,240	9.29
Total shareholding of Promoter and Promoter Group (A)	477,524,004	18.64
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	4	-
Central Government / State Government(s)	3,000	-
Foreign Institutional Investors	86,956,921	3.39
Sub Total	86,959,925	3.39
(2) Non-Institutions
Bodies Corporate	426,567,853	16.65
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	414,758,578	16.19
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	233,348,337	9.11
Any Others (Specify)	15,050,957	0.59
Clearing Members	1,109,429	0.04
Non Resident Indians	13,864,128	0.54
Trusts	77,400	-
Sub Total	1,089,725,725	42.54
Total Public shareholding (B)	1,176,685,650	45.93
Total (A)+(B)	1,654,209,654	64.57
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	907,680,000	35.43
Sub Total	907,680,000	35.43
Total (A)+(B)+(C)	2,561,889,654	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Synthetic blended ring spun yarn.

Products :

Product Description	ITC Code
Cotton Yarn	5205.00
Manmade Staple Yarn	5509.00
Cotton Seed Oil	151229.00
Cotton Seed Oil-Cake	230610.03

Exports :

Products :

Polyster Viscose and Polyster Acrylic

Countries :

South Africa
Europe
Middle East

Terms :

Selling :

Cash and Credit ( 30-60-90 Days)

Purchasing :

Cash and Credit ( 30-60-90 Days)

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Installed Capacity*	Actual Production
Synthetic Yarn	Spindles	22248	4811
Cotton Yarn	Spindles	36000	3269
Cotton Yarn	Rotors	1728	2854
Cotton Seed Oil	Quintals	75000	--
Cotton Bales	Bales	54723	30989

*As certified by the management and being technical matter accepted by the auditors as correct.

GENERAL INFORMATION

Customers :

Wholesalers
Retailers
End Users
OEM’s

No. of Employees :

Approximately 100

Bankers :

Ing Vysya Bank, Kamanwala Chambers, Fort, Mumbai, Maharashtra, India
Karur Vysya Bank Limited, Kamanwala Chmabers, Sir P.M. Road, Fort, Mumbai-400001, Maharashtra, India
Bank of India, H.O. at C-5, G Block, Bandra Kurla Complex, Bandra East, Mumbai-400051, Maharashtra, India

Facilities :

Secured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Term Loans from Banks and Financial Institutions	1377.102	1462.206
Working Capital Loans from Banks	496.728	109.575
Car Loans	0.989	0.877
Total	1874.819	1572.658
Note: a) Term Loans from Banks and Financial Institution are secured by first pari-passu charge on all, present and future, movable and immovable fixed assets and by second charge on all, present and future, inventories and book debts. b) Working Capital Loans from Banks are secured by first pari-passu charge on all, present and future, inventories and book debts and by second charge on on all, present and future, movable and Immovable fixed assets. c) Car Loans Secured by hypothecation of specific vehicle.
Unsecured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Dues to body Corporate	158.253	0.000
Others	11.243	0.000
Total	169.496	0.000


Banking Relations :	--

Auditors :
Name :	Dalal and Shah Chartered Accountant
Address :	Veer Savarkar Marg, Shivaji Park, Dadar (West), Mumbai-400028, Maharashtra, India
Tel. No.:	91-22-66691000
Fax No.:	91-22-66547800/ 66547801

Subsidiaries :	· Birla Viking Travels Private Limited · Zenith Birla (India) Limited · Birla Global Corporate Limited · Birla Infrastructure Limited · Khamgaon Syntex India Limited · Nirved Traders Private Limited · Birla Power Solutions Limited · Birla Leasing And Infrastructure Limited · Zsenith Dye Intermediaaties Private Limited · Birla Integrated Textile Park Limited

CAPITAL STRUCTURE

As on 20.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount

5500000000	Equity Shares	Rs. 1/- each	Rs. 5500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

2561889654	Equity Shares	Rs. 1/- each	Rs. 2561.890 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount

2500000000	Equity Shares	Rs. 1/- each	Rs. 2500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

2134908100	Equity Shares	Rs. 1/- each	Rs. 2134.908 Millions

Of the above

i) 450,000 Equity Shares of Rs.1/- each (Previous year 45,000 Equity Shares of Rs.10/- each) issued for consideration other than cash in terms of Amalgamation Scheme.

ii) 1,13,547,000 Equity Shares of Rs.1/- each (Previous year 11,354,700 Equity Shares of Rs.10/- each) have been allotted as fully paid Bonus Shares by Capitalisation of Reserves and Securities Premium Account.

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		2134.908	1166.008	136.181
2] Share Application Money		0.000	0.000	366.458
3] Reserves & Surplus		670.219	554.466	248.688
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2805.127	1720.474	751.327
LOAN FUNDS
1] Secured Loans		1874.819	1572.658	795.614
2] Unsecured Loans		169.496	0.000	1.000
TOTAL BORROWING		2044.315	1572.658	796.614
DEFERRED TAX LIABILITIES		48.298	27.164	19.554

TOTAL		4897.740	3320.296	1567.495

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		1693.433	1496.176	578.851
Capital work-in-progress		1244.524	1340.938	624.142

INVESTMENT		0.150	0.150	0.050
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	202.392	185.946	103.881
	Sundry Debtors	720.155	273.167	126.043
	Cash & Bank Balances	1190.213	26.905	67.440
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	314.596	363.807	291.378
Total Current Assets		2427.356	849.825	588.742
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	219.912	255.899	119.619
	Other Current Liabilities	83.553	66.309	71.545
	Provisions	164.258	44.585	33.126
Total Current Liabilities		467.723	366.793	224.290
Net Current Assets		1959.633	483.032	364.452

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		4897.740	3320.296	1567.495

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income (Sales and Services income)	3440.057	1935.654	837.725
		Other Income	36.700	60.326	13.029
		TOTAL (A)	3476.757	1995.980	850.754

Less	EXPENSES
		Raw Materials and Purchase	2761.000	1636.269	593.875
		Manufacturing and Maintenance Expenses	223.100	122.970	81.163
		Employee’s Remunerations and Benefits	140.594	101.494	85.927
		Administrative, Selling and Other expenses	99.797	52.167	28.494
		Increase / Decrease in Inventories	[48.527]]	[51.139]	3.054
		Transferred from Revaluation Reserve	[0.042]	[0.042]	[0.043]
		TOTAL (B)	3175.922	1861.719	792.470

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		300.835	134.261	58.284

Less	FINANCIAL EXPENSES (D)		133.822	49.880	7.257

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		167.013	84.381	51.027

Less/ Add	DEPRECIATION/ AMORTISATION (F)		51.587	51.258	14.689

	PROFIT BEFORE TAX (E-F) (G)		115.426	33.123	36.338

Less	TAX (I)		39.959	11.944	19.706

	PROFIT AFTER TAX (G-I) (J)		75.467	21.179	16.632

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		41.188	33.650	24.984

Less	APPROPRIATIONS
		Proposed Dividend	96.071	11.660	6.809
		Dividend Distribution Tax	15.957	1.981	1.157
	BALANCE CARRIED TO THE B/S		4.627	41.188	33.650

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	84.009	61.573	68.903
	TOTAL EARNINGS		84.009	61.573	68.903

	IMPORTS
		Stores & Spares	3.285	1.396	0.280
		Capital Goods	0.000	90.661	260.027
	TOTAL IMPORTS		3.285	92.057	260.307

	Earnings Per Share (Rs.)		0.06	0.02	1.22

Expected Sales (2010-2011) : Rs. 5000.000 Millions

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010
Type	1^st Quarter	2^nd Quarter
Net Sales	1158.360	1455.880
Total Expenditure	1057.230	1286.210
PBIDT (Excl OI)	101.130	169.670
Other Income	18.770	[0.010]
Operating Profit	119.900	169.660
Interest	69.860	76.610
Exceptional Items	0.000	[11.750]
PBDT	50.040	81.320
Depreciation	19.040	19.240
Profit Before Tax	31.000	62.080
Tax	11.750	39.800
Provisions and contingencies	0.000	0.000
Profit After Tax	19.250	22.270
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	19.250	22.270

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.17	1.06	1.95

Net Profit Margin (PBT/Sales)	(%)	3.36	1.71	4.34

Return on Total Assets (PBT/Total Assets}	(%)	2.80	1.41	3.11

Return on Investment (ROI) (PBT/Networth)		0.04	0.02	0.05

Debt Equity Ratio (Total Liability/Networth)		0.90	1.13	1.36

Current Ratio (Current Asset/Current Liability)		5.19	2.32	2.62

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. in Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors
Dues to Micro and Small Enterprises	0.000	0.000	0.000
Others	219.912	255.899	119.619
Total	219.912	255.899	119.619

Note:

The Registered office of the company has been shifted from Fort, Mumbai-400001, Maharashtra, India to present address w.e.f. 13.03.2006

Operating and Financial Performance:

During the year net income increased from Rs. 1995.980 Millions to Rs. 3525.285 Mllions i.e. increased by 76.62% over the previous year. Profit after tax has increased from Rs.21.179 Millions to Rs. 75.467 Millions. The Company continues to remain a leading exporter of synthetic yarn to other countries. The Company has increased the Exports turnover by 36.43 % i.e. from Rs. 61.573 Millions to Rs.84.009 Millions during the year. The Company continues to remain net earner of the valuable foreign exchange.

Issue of Global Depository Receipts (GDRs):

Pursuant to the approval of the shareholders by way of Postal Ballot on 14th December, 2009, the Company has allotted 96,890,000 GDRs underlying 968,900,000 Equity Shares issued at a premium i.e. Rs.0.20 per share. The GDRs are listed on Luxembourg Stock Exchange and the underlying shares are listed on both Bombay Stock Exchange and National Stock Exchange. Due to the issue of 96,890,000 GDRs underlying 968,900,000 Equity Shares as on 15th March, 2010 the paid up capital of the Company raised upto 2,134,908,100 Equity Shares from 1,166,008,100 Equity Shares.

Expansion Project

During the year, as part of the set up of the Integrated Textile Plant, the Company has commissioned the Weaving unit, while the Synthetic unit, Open End Unit and the Cotton Spinning units are fully operational.

The Company also envisages to set up an Wind Mill Project of adequate capacity. While keeping up its pace with the Integrated Textile Plant Project, the Company is setting up and an Industrial Housing Complex for its workers and staff at Malkapur.

MANAGEMENT’S DISCUSSION AND ANALYSIS

a) Industry Structure and Business Overview:

The Indian Textile industry has overwhelming presence in the economic life of the country. While it provides the basic necessities of life, it also plays a pivotal role through its contribution to Industrial output, employment generation and export earnings. This is evident from the fact that the textile industry accounts for around 7 per cent of the Gross Domestic Product (GDP), and 17% of the manufacturing output. It is also a significant foreign exchange earner, contributing to around 25% of India’s total exports. The textile sector is also the second largest employment generator after agriculture, employing 82 million people – 35 million directly and 47 million in allied sectors.

The major contributors for the growth of the textile industry are a buoyant domestic economy, a substantial increase in cotton production, the conducive policy environment provided by the Government. As such the textile industry consumes a diverse range of fibres and yarn, but is predominantly cotton based. A significant increase in cotton production during the last few years, with an estimated production for the year 2009-2010 being 292 lakh bales, has increased the availability of Raw Cotton to the domestic textiles industry at competitive prices. Also the Government has provided industry a conducive environment and initiated schemes which have facilitated the growth of the industry like Technology Mission on Cotton and Technology Upgradation Fund Scheme (TUFS).

The projected value of the Indian textile industry is estimated to grow from US$ 52 billion in the year 2005-2006 to US$ 115 billion by the year 2012, comprising domestic market of US$ 60 billion and exports of US$ 50 billion. The CAGR of the industry for the domestic consumption and exports is expected to be 10.0% and 19.0% respectively between the year 2006 and 2012. It is expected that India’s share of exports to the world also increase from the current 4 per cent to around 7 per cent during this period.

b) Opportunities and Threats:

India’s liberalized policies and the government’s decision to allow 100 per cent FDI in the emerging textiles industry has led to an increase in the investment inflows into the sector. Further, Technology Upgradation Fund Scheme i.e. (TUFS) which was launched to facilitate the modernization and upgradation of the textiles industry in 1999 has been extended till 2011-2012. TUFS has helped in the transition from a quantitatively restricted textiles trade to market driven global merchandise. It has infused an investment climate in the textiles sector and in its operational life span has propelled investment of more than Rs. 1668390.000 Millions. However, pressures on export prices due to lower demand and severe competition from neighboring countries such as China, Indonesia, Vietnam, Turkey, Bangladesh etc. do continue.

Segment-wise Performance:

Segment-wise performance of the company during the financial year 2009-10 is given below:

	Textile	Trading
Income	1280.777	2159.280
Expenditure	1221.614	1917.853
Depreciation	51.343	--
PBIT	7.821	241.427
FOB Value of Exports	84.009	61.573

Financial Performance:

The Company’s net income during the year 2009-10 was Rs. 3476.757 Millions as against Rs.1995.980 Millions during 2008-09. Profit before tax for the year 2009-10 has increased to Rs.115.426 Millions as compared to Rs.33.123 Millions during the year 2008-09 mainly on account of full operations of the 36000 Cotton Spinning Unit and Open End Unit as a part of the Integrated Textile Project.

Contingent Liabilities not provided for in respect of:

Particulars

31.03.2010

Rs. in Millions

a) Claims against company not acknowledged as debt

0.102

b) Labour matter pending with the court

1.515

Bankers Charges Report as per Registry

Corporate identity number of the company	L17110MH1941PLC003429
Name of the company	BIRLA COTSYN (INDIA) LIMITED
Address of the registered office or of the principal place of business in India of the company	Dalamal House, 1^st Floor, J.B. Marg, Nariman Point, Mumbai-400021, Maharashtra, India
This form is for	Modification of charge
Charge identification number of the charge to be modified	10222455
Type of charge	Book Debts Movable Property
Particular of charge holder	Karur Vysya Bank Limited, Kamanwala Chmabers, Sir P.M. Road, Fort, Mumbai-400001, Maharashtra, India
Nature of instrument creating charge	Agreement for Credit Facilities dated 22.12.2010
Date of instrument Creating the charge	22.12.2010
Amount secured by the charge	Rs. 250.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest OCC account with interest at 4% p.a. over and above the base rate of the bank- presently 13% p.a. Terms of Repayment Payable on demand and Renewable every year. Margin OCC/ WCDL- RM/SIP/FG- 25% book Debts – 40% (Cover period up to 90 Days) ILC/ FLC – 10% cash Margin Extent and Operation of the charge First pari passu charge on entire Current Assets of the company, Viz. Stock of raw materials, stock n process, Finished goods, stores and spares, packing materials, and book debts along with other working capital lenders. Second pari passu charge on the Fixed assets both present and future pertaining to all the project assets of the company.
Short particulars of the property charged	First pari passu charge on entire Current Assets of the company, Viz. Stock of raw materials, stock n process, Finished goods, stores and spares, packing materials, and book debts along with other working capital lenders. Second pari passu charge on the Fixed assets both present and future pertaining to all the project assets of the company.
Particulars of the present modification	Enhancement of Working Capital Limits from Rs. 160.000 Millions to Rs. 250.000 Millions.

Fixed Assets:

· Freehold Land

· Leasehold Land

· Building

· Plant and Machinery

· Furniture and Fixtures

· Computers

· Other Office Equipments

· Electrical Installation

· Vehicles

AS PER WEBSITE

Profile:

Birla Cotsyn started its operation in 1932 as a flagship of the Yash Birla Group, one of the largest industrial conglomerates in India. The Sprawling unit is located at Khamgaon (M.S) in the industrial belt of Central India. Birla Cotsyn (India) Limited is having Synthetic Blended Ring Spun Yarn manufacturing facility with state of Art machineries at Khamgaon. The company has excellent sales network in India and abroad for Grey and Dyed Solid Griddles, Fancy, Industrial Knitting and Sewing Ring Spun Yarns in various blends and count range from NE 8s to 60s.

The Yash Birla group promoted Birla Cotsyn India (BCIL) has 50:50 Joint venture with the P.B.Bhardwaj hairman Sunflag Group. In the first phase, the Rs. 315 core integrated textile complex will manufacture open end, rotor based cotton yarn with an installed capacity of 1728 rotors. It will have 114 looms to weave fabric. The state government has conferred the ‘mega project status’ to the project.

Having acquired 100 acres of land at MIDC, Malkapur, they are expanding current capacities from 21000 spindles to 36,000 spindles. With a proposed 1728 rotors and 114 looms, the capacity is bound to rise to 50,000 meters per day.

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.45.57
UK Pound	1	Rs.72.50
Euro	1	Rs.62.46

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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.

MIRA INFORM REPORT

202.392

720.155

1190.213

0.000

314.596

2427.356

219.912

83.553

164.258

467.723

1959.633

2.17

3.36

2.80

0.04

0.90

5.19

Unit