MIRA INFORM REPORT

Report Date :

17.09.2011

IDENTIFICATION DETAILS

Name :	THE INDIAN CARD CLOTHING COMPANY LIMITED
Registered Office :	Mumbai – Pune Road Penicilin Factory, Pimpri, Pune – 411 018, Maharashtra.
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	24.06.1955
Com. Reg. No.:	11-009579
Paid-up Capital :	Rs. 45.511 Millions
CIN No.: [Company Identification No.]	L29261PN19545PLC009579
Legal Form :	A Public Limited Liability Company. The Company Shares are Listed on the Stocks Exchange
Line of Business :	Manufacturer of Card Clothing
No. of Employees :	800 (approximately)

RATING & COMMENTS

MIRA’s Rating :

A (62)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 3300000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Financial Position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. 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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
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 :	Mumbai – Pune Road Penicilin Factory, Pimpri, Pune – 411 018, Maharashtra, India.
Tel. No.:	91-20-39858200 / 27425390
Fax No.:	91-20-39858300
E-Mail :	icc@cardindia.com accounts@cardindia.com adahotre@cardindia.com
Website :	www.cardindia.com
Branch Office / ICC Workshop :	Located At: · Ahmedabad · Coimbatore · Gutnur · Kolkata · Ludhiana · Madurai · Mumbai · New Delhi · Panipat

DIRECTORS

As On 31.03.2011

Name :	Mr. K.K. Trivedi
Designation :	Chairman Emeritius
Name :	Mr. Prashant Trivedi
Designation :	Chairman
Name :	Mr. Mehul K. Trivedi
Designation :	Managing Director
Name :	Mr. H C Asher
Designation :	Director
Name :	Mr. M. M. Shah
Designation :	Director
Name :	Mr. J M Kothary
Designation :	Director
Name :	Mr. Chaitan M. Maniar
Designation :	Director
Name :	Mr. Sudhir Merchant
Designation :	Director

KEY EXECUTIVES

Name :	Mr. M. K. Trivedi
Designation :	Managing Director
Name :	Mr. A.D. Dhotre,
Designation :	Vice President (Finance) and Company Secretary
Name :	Mr. U.V. Bhave
Designation :	Vice President, (Human Resource)
Name :	Mr. H. Chandrashekhar
Designation :	General Manager (Sales and Marketing)
Name :	Mr. A. B. Pawar
Designation :	General Manager, (Production, Pimpri Works)
Name :	Mr. Ajay Kumar
Designation :	Plant Head (HP Works)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	2,610,166	57.35
Sub Total	2,610,166	57.35
Total shareholding of Promoter and Promoter Group (A)	2,610,166	57.35
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1,800	0.04
Financial Institutions / Banks	457	0.01
Insurance Companies	15,050	0.33
Sub Total	17,307	0.38
(2) Non-Institutions
Bodies Corporate	339,757	7.47
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	1,465,176	32.19
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	95,399	2.10
Any Others (Specify)	23,315	0.51
Non Resident Indians	23,315	0.51
Sub Total	1,923,647	42.27
Total Public shareholding (B)	1,940,954	42.65
Total (A)+(B)	4,551,120	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	4,551,120	-

BUSINESS DETAILS

Line of Business :

Manufacturer of Card Clothing

Products :

Item Code No. (ITC Code)	844831.00
Product Description	Card Clothing

PRODUCTION STATUS (As On 31.03.2011)

		Pimpri Plant		HP Plant
Particulars	Unit	Installed Capacity	Actual Production	Installed Capacity	Actual Production
Flexible and metallic card clothing	Sets	8000	4748	3000	256
Woollen, worsted, cotton waste and asbestos card clothing and raising fillets and sheets	Metres	450000	131759	--	--
Accura fixed flats	Nos	28800	13535	72000	37792

GENERAL INFORMATION

No. of Employees :

800 (approximately)

Bankers :

· Corporation Bank

· HDFC Bank

· ICICI Bank

Facilities :

Secured Loans :	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. in Millions)
Term Loan Secured by charge on Land, Building and Plant and Machinery of Himachal Pradesh Factory (Rs. 20.000 millions due with-in a year, previous year Rs. 20.000 millions)	80.788	92.979
Bank Overdraft Secured by hypothecation of inventory and book debts	2.998	5.052
Total	83.786	98.031

Banking Relations :	-
Auditors :
Name :	B.K. Khare and Company Chartered Accountants
Address :	706/708, Sharda Chambers, New Marine Lines, Mumbai – 400 020, Maharashtra, India
Solicitors :
Name :	Crawford Bayley and Company
Address :	State Bank Building, N. G. Vaidya Marg, Mumbai 400 023, Maharashtra, India
Holding Company:	· Multi Act Industrial Enterprises Limited, Mauritius
Associates/Subsidiaries :	· Garnett Wire Limited, UK · ICC International Agencies Limited · Shivraj Sugar and Allied Products Private Limited · Multi Act Trade and Investments Private Limited · Multi Act Equity Consultancy Private Limited · Kardhar Constructions Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- Each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4551120	Equity Shares	Rs.10/- Each	Rs.45.511 Millions

Of the above shares:

(a) 26,10,066 Equity Shares are held by the holding company – Multi Act Industrial Enterprises Limited, Mauritius

(b) 26,20,800 Equity Shares were allotted as fully paid Bonus shares by capitalization of General Reserve

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		45.511	45.511	45.511
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		782.358	775.836	746.268
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		827.869	821.347	791.779
LOAN FUNDS
1] Secured Loans		83.786	98.031	30.712
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		83.786	98.031	30.712
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		911.655	919.378	822.491
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		548.217	428.170	193.663
Capital work-in-progress		103.094	191.769	380.064
INVESTMENT		257.906	250.567	220.740
DEFERRED TAX ASSETS		1.374	2.167	7.972
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	112.845	102.398	80.956
	Sundry Debtors	81.707	86.257	82.323
	Cash & Bank Balances	8.968	4.004	4.077
	Other Current Assets	0.016	0.000	0.000
	Loans & Advances	72.117	70.298	57.618
Total Current Assets		275.653	262.957	224.974
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	114.362	93.089
	Other Current Liabilities	129.703	92.866	172.477
	Provisions	30.524	30.298	32.445
Total Current Liabilities		274.589	216.253	204.922
Net Current Assets		1.064	46.705	20.052
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		911.655	919.378	822.491

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	491.293	461.291	378.075
		Servicing	5.542	4.571	3.602
		Other Income	93.124	75.105	70.628
		TOTAL (A)	589.959	540.967	452.305
Less	EXPENSES
		Material, Manufacturing and Other Expenses	497.495	443.244	405.426
		Expense Capitalised	0.000	(2.070)	(2.370)
		TOTAL (B)	497.495	441.174	403.056
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		92.464	99.793	49.249
Less	INTEREST (D)		11.910	9.327	2.261
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		80.554	90.466	46.988
Less/ Add	DEPRECIATION/ AMORTISATION (F)		54.746	31.491	25.511
	PROFIT BEFORE TAX (E-F) (G)		25.808	58.975	21.477
Less	TAX (I)		3.417	13.487	4.949
	PROFIT AFTER TAX (G-I) (J)		22.391	45.488	16.528
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		542.066	517.099
Less	APPROPRIATIONS
		General Reserve	2.500	4.600	NA
		Dividend	13.653	13.653
		Tax on Dividend	2.215	2.268
	BALANCE CARRIED TO THE B/S		546.089	542.066
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	108.693	106.918	65.844
		Other (freight charges on exports)	2.843	2.536	2.001
	TOTAL EARNINGS		111.536	109.454	67.845
	IMPORTS
		Raw Materials	22.566	33.290	11.674
		Stores & Spares	0.493	1.832	1.336
		Capital Goods	1.102	0.000	0.882
		Trading goods	3.733	2.209	1.812
	TOTAL IMPORTS		27.894	37.331	15.704
	Earnings Per Share (Rs.)		4.92	9.99	3.63

QUARTERLY RESULTS

PARTICULARS	30.06.2011 1^st Quarter
Net Sales	141.370
Total Expenditure	124.320
PBIDT (Excl OI)	17.050
Other Income	4.060
Operating Profit	21.110
Interest	2.460
PBDT	18.650
Depreciation	12.770
Profit Before Tax	5.880
Tax	2.020
Profit After Tax	3.860
Net Profit	3.860

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.80	8.41	3.65
Net Profit Margin (PBT/Sales)	(%)	5.25	12.78	5.68
Return on Total Assets (PBT/Total Assets}	(%)	3.13	8.53	5.13
Return on Investment (ROI) (PBT/Networth)		0.03	0.07	0.03
Debt Equity Ratio (Total Liability/Networth)		0.43	0.38	0.50
Current Ratio (Current Asset/Current Liability)		1.00	1.22	1.10

LOCAL AGENCY FURTHER INFORMATION

Company History:

Subject was incorporated in Jul.'55 as a private limited company. It was converted into a public limited company in Jan.'76. The company was promoted as a joint venture between two British companies -- The English Card Clothing Company and the Carclo Engineering group manufactures card clothing suitable for all types of fibres requiring carding, i.e., all the natural fibres and manmade fibres in staple form. It also has a 100% EOU at Ahmedabad. The company came out with a rights issue (premium : Rs.70/-) aggregating Rs.104.000 Millions in Dec.'93, to provide for normal capital expenditure and participated in a joint venture with Spindel fabrik Suessen Schurr, Stahlecker and Grill, Germany, which it had undertook to manufacture of textile machinery equipment. Due to recession in textile industries in the Domestic and Overseas market, the company diversified its project and participate in a Joint Venture with Texmaticc India Limited, and invested Rs.2.500 Millions. The Residential housing Project of Nirvan Builders and Developers Limited in which company particiapted and received advance for sale of major part of its investment in project. Garnett Wire Limited, a U.K. Company, in which ICCCL has 60% of issued share capital, this is second year of investment by the ICCCL. The company has maintained ISO 9002 recognition by Bureau Veritas Quality International for Metallic and flexible card clothing and R and D Centre begun to make a contribution to development of newer and improved products and processes. The company is planning to develop new products for carding applications and also improvement in the processes.

OPERATIONS-HIGHLIGHTS

The Company’s Sales and Servicing Income for the year was Rs.496.835 millions as compared to Rs.465.862 millions in 2009-10. Sale of metallic card clothing increased by 12.00% during the year to Rs.369.971 millions from Rs.330.356 millions in the previous year. This reflected the general growth conditions in the textile industry. Sale of woollen card clothing decreased by 19.98% during the year to Rs.48.087 millions from Rs.60.092 millions in the previous year due to lower demand for products manufactured from shoddy yarn and difficulty in procurement of input material. Exports marginally increased by 1.67% to Rs.108.693 millions during the year from Rs.106.918 millions in the previous year in view of limitations on production capacity.

New Manufacturing Facility at Nalagarh, Himachal Pradesh

Production of accura carriers was established at Nalagarh from the third quarter of the year. Various ranges of metallic card clothing are under development, though dispatch of metallic card clothing from Nalagarh factory was lower during the year.

SUBSIDIARY COMPANIES

ICC International Agencies Limited (ICCIAL) recorded increase in income of 7.12% from Rs.35.106 millions in the previous year to Rs.37.606 millions in the current year. The subsidiary company recorded profit after tax of Rs.4.959 millions in the current year against previous year’s profit after tax of Rs.4.525 millions. A higher profit after tax was mainly on account of better management of inventory of traded goods. ICCIAL declared 100% dividend for the year (nil in the previous year).

Garnett Wire Limited (GWL), a U.K. Company, in which the Company has 60% of the issued share capital, recorded higher turnover of 27.01% from PDS 874,829 to PDS 1111,145 resulting in profit after tax at PDS 8,716/- against loss of PDS 20,284/- in the previous year. Higher turnover for the year was on account of higher export sales of wire only. However, margins continued to remain under pressure in a difficult trading environment in Europe and USA being GWL’s principal markets.

M/S. Shivraj Sugar and Allied Products Private Limited, subsidiary of the Company, has not started operations as yet.

Management Discussion and Analysis:

Industry Structure and Development

Currently, five major manufacturers dominate the card clothing industry for short staple fibre. Trutzschler Card Clothing GMBH (a subsidiary of Trutzschler GMBH), was created by acquiring the European and later, the American business assets of J.D. Hollingsworth on Wheels Inc. Graf + Cie AG, now owned by Rieter Textile Systems Division of Rieter Holdings Limited, has grown organically. These two companies have continued to maintain their prominence in the industry as the largest suppliers globally. Trutzschler supplies card clothing as original equipment supplier to cards manufactured by its parent company, while Graf supplies card clothing to Rieter cards.

Bekaert Carding Solutions, (BCS) based in Belgium with a predominantly Chinese manufacturing base, grew by acquiring several small and large card clothing manufacturers in Europe, including English Card Clothing, a division of Carclo Group plc, Sobelcard NV and Damgaard GMBH. Bekaert Carding Solutions, together with Lakshmi Card Clothing Limited (‘LCC’) and The Indian Card Clothing Company Limited (‘ICC’) with roughly similar capacity, are the other three global players in the short-staple carding segment.

The long-staple carding segment is divided into either manufacturers of flexible card clothing or metallic card clothing. ICC, Biotti Fabbrica di Scardassi Srl and Arimo s.a.s are three of the major manufacturers of flexible card clothing. While Trutzschler, Graf, BCS and Garnett Wire Limited, a subsidiary of ICC, manufacture metallic card clothing for long staple fibre.

Operations:

In line with the general revival of the textile industry in India and globally, the company’s operations continued to improve in this fiscal year. Sales of the company’s card clothing in the domestic and export markets for short staple increased. Sales of flexible card clothing suffered as the Company faced supply constraints for cushion foundation after the sale of the assets of Fytiscar, Belgium to Trutzschler India. There was an overall improvement in the sales and service income. Increased sales to textile mills, which use the latest generation cards improved sales and margins.

The company’s new plant at Nalagarh continued to dispatch Accura stationary flats. The machines for manufacturing metallic card clothing having been commissioned in the previous financial year, production of a few metallic wires commenced this financial year.

A partial completion certificate of the Software Technology Park of India (‘STPI) approved building was obtained in this fiscal year. One floor of the building was licensed in this fiscal year and efforts are underway to market rest of the office space allotted to the company. The Information Technology sector has begun to see some improvement in business. However most companies in that sector have not yet begun hiring space. Given the location and quality of the building, the company is confident of letting out the space within a short period.

OUTLOOK

Following the dramatic fall in the price of raw cotton in early April and subsequent fall in the price of cotton yarn, many textile spinning mills, who had covered their cotton requirement for the current financial year are facing severe losses on the sale of their yarn and the Company has experienced a slowing down in the flow of orders. Most textile mills are unable to say with any certainty how long this situation will continue. The Company intends to continue to focus its attention in fiscal 2011-2012 on targeting mills with the latest generation of cards. Thrust on cost reduction will continue. The Company will also concentrate in bringing about improvements in productivity.

FIXED ASSETS

· Land (Freehold)

· Buildings

· Plant and Machinery

· Electrical Installations

· Air-conditioner Plant and Machinery

· Furniture and Fittings

· Office Equipments and Computers

· Vehicles

BUSINESS DESCRIPTION

Subject is an India-based company. The Company is engaged in the manufacture of metallic card clothing and the provision of associated services. It offers a range of wires, tops and flexible card clothing. Its card clothing includes short staple, longs staple, non-woven and others. Its card accessories includes web catcher, accura carding systems and XTRAC systems. The Company’s subsidiaries include Garnett Wire Limited, ICC International Agencies Limited, and Shivraj Sugar and Allied Products Private Limited For the fiscal year ended 31.03.2010 Indian Card Clothing Limited's revenues increased 11% to RS630.2M. Net income totaled RS46.7M, up from RS4.2M. Revenues reflects an increase in income from Card Clothing, higher income from treasury and an increase in income from realty business division. Net income reflects a decrease in purchase of traded goods and the presence of gain on Inc/Dec in stock in trade vs. a loss.

AS PER WEBSITE

PROFILE

Subject has mastered change to keep its position as a leader. With products developed to handle the evolving needs of increased rate of outputs – going as high as 150 kg/hour. and to meet more exacting quality standards worldwide. Innovation has become an ongoing process at company. A state-of-the-mind instilled in every employee, in every department, in every stage of the production process.

The result. A wide range of wires, tops and flexible card clothing. To suit every requirement, depending on the type of fibre being processed and the quality parameters desired. In fact, subject is one of the few companies in the world that manufactures card clothing to process every fibre. Natural or man made. On every type of carding machine, be it conventional cards or super high production cards.

The R and D Cell at company is constantly tuned to market needs.Experimenting with fresh ideas and technologies. Making significant breakthroughs in tooth geometry, surface treatment, etc. Recent developments include special alloy steel wires in the Maxus, Primus and Tenace series, a new generation of Triumph Tops and specially developed Aero Doffer Wires for better doffing.

Thanks to team efforts, Company now has a line of Card Upgrade Products which aim at adding carding efficiency to older cards. Subject’s Web Catcher and Accura Carding Elements have added significantly to the returns at hundreds of mills, where they have been installed in the last couple of years. They have also developed innovative products like Accura Beater Segment, Sharprite wire Resharpening device, Sharprite Tops, All roller mounting machine ARM 08, Clipit4060 Flat Clipping Machine. The latest development Xtrac, improves the efficiency of newer generation super high production cards. More such innovations are on the testing line.

They can also supply from their sister concern M/S Garnett Wire Limited, UK who manufacture interlocking wires as well as metallic wires in heavier cross section commonly used in blow room lines, Woollen, Nonwoven and Orsted Machineries.

The company stamp of quality, recognised the world over, is further endorsed by the ISO 9001 Certification from BVQI. Company has satisfied clients in virtually every part of the globe-the Far East. South East Asia, Africa, Europe and the Americas.

PRESS RELEASE:

Equity Bites

21.01.2011

21.01.2011 - ICRA yesterday assigned an LA/"stable" rating to a cash-credit and a term loan of Indian Card Clothing Company Limited (BOM:509692).

The agency issued the following press release:

Rating History

Amount Rated Rating Outstanding Previous Ratings

December 2010

Note: Amount in Rs. Millions

ICRA has assigned an LA (pronounced L A) rating to the Rs 198.000 millions 1 term loan and Rs. 20.000 millions cash credit facilities of The Indian Card Clothing Company Limited (ICC) + The long term rating has been assigned stable outlook. ICRA has also assigned an A1 (pronounced A one) rating to the Rs. 42.000 millions short term non fund based facilities ICC+.

The assigned rating draws comfort from company's established and long standing market position leading to diversified client base and healthy order book position. This coupled with regular income from rented properties at Pune, Powai and Nariman Point (Mumbai); and from treasury operations has resulted in stable cash flows. Going forward, income from realty is likely to increase on account of leasing out of IT Park at Pune, which is nearing completion; thereby further strengthening cash flows of the company. The rating also factors in strong financial position of the company as reflected in stable cash flows, favourable capital structure and comfortable coverage indicators backed up by sizeable investment portfolio to the tune of approximately Rs. 230.000 millions of liquid investments. The ratings are however constrained by almost stagnant sales in textiles division, high and intensifying competition in card clothing business, and adverse cost structure due to high cost unionized manpower at Pune. The rating also factors in high working capital intensity arising out of its dependence on imports for wide variety of raw materials thereby resulting high level of raw material stock.

Company Profile

The Indian Card Clothing Company Limited ("ICC" or "the company") is primarily engaged in supplying card clothing and card room accessories which are either locally manufactured or imported. ICC was incorporated on 24.06.1955 as a private limited company and was converted into a public limited company on 27.03.1975. At present, Mauritius based, Multi Act Indus Limited (MAIL) is the holding company of ICC with a stake of 57.35% in the equity share capital of the company. ICC operates through three business verticals: card clothing business, realty and treasury; while card clothing is the core operating business, ICC generates regular income of around 15% of total revenue from realty as well as treasury operations. ICC has three subsidiaries, namely Garnett Wire Limited (60% shareholding), ICC International Agencies Limited (wholly owned subsidiary) and Shivraj Sugar and Allied Products Private Limited (94% shareholding). The company is largely a manufacturing company with manufacturing facilities at two locations, Pimpri (Pune, Maharashtra) and Nalagarh (Himachal Pradesh) and two service centers located at -- Coimbatore and Madurai (Tamil Nadu).

Aii Data Processing Limited

21.01.2011

(ADPnews) – 21.01.2011 - ICRA yesterday assigned LA/"stable" rating to a cash -credit and a term loan of Indian Card Clothing Company Limited (BOM:509692).

The agency issued the following press release:

Rating History

Amount Rated Rating Outstanding Previous Ratings

December 2010

Bank lines (Term Loan) 19.80 LA (stable) --

Bank lines (Cash-Credit) 2.00 LA (stable) --

Bank lines (Non Fund Based) 4.20 A1 --

Note: Amount in Rs. Millions

ICRA has assigned an LA (pronounced L A) rating to the Rs 198.000 millions 1 term loan and Rs. 20.000 millions cash credit facilities of The Indian Card Clothing Company Limited (ICC) � The long term rating has been assigned stable outlook. ICRA has also assigned an A1 (pronounced A one) rating to the Rs. 42.000 millions short term non fund based facilities ICC�.

The assigned rating draws comfort from company�s established and long standing market position leading to diversified client base and healthy order book position. This coupled with regular income from rented properties at Pune, Powai and Nariman Point (Mumbai); and from treasury operations has resulted in stable cash flows. Going forward, income from realty is likely to increase on account of leasing out of IT Park at Pune, which is nearing completion; thereby further strengthening cash flows of the company. The rating also factors in strong financial position of the company as reflected in stable cash flows, favourable capital structure and comfortable coverage indicators backed up by sizeable investment portfolio to the tune of approximately Rs. 230.000 millions of liquid investments. The ratings are however constrained by almost stagnant sales in textiles division, high and intensifying competition in card clothing business, and adverse cost structure due to high cost unionized manpower at Pune. The rating also factors in high working capital intensity arising out of its dependence on imports for wide variety of raw materials thereby resulting high level of raw material stock.

Company Profile

The Indian Card Clothing Company Limited (�ICC� or �the company�) is primarily engaged in supplying card clothing and card room accessories which are either locally manufactured or imported. ICC was incorporated on 24.06.1955 as a private limited company and was converted into a public limited company on 27.03.1975. At present, Mauritius based, Multi Act Indus Limited (MAIL) is the holding company of ICC with a stake of 57.35% in the equity share capital of the company. ICC operates through three business verticals: card clothing business, realty and treasury; while card clothing is the core operating business, ICC generates regular income of around 15% of total revenue from realty as well as treasury operations. ICC has three subsidiaries, namely Garnett Wire Limited (60% shareholding), ICC International Agencies Limited (wholly owned subsidiary) and Shivraj Sugar and Allied Products Private Limited (94% shareholding). The company is largely a manufacturing company with manufacturing facilities at two locations, Pimpri (Pune, Maharashtra) and Nalagarh (Himachal Pradesh) and two service centers located at � Coimbatore and Madurai (Tamil Nadu).

Indian Patent News

27.07.2011

New Delhi, July 27 -- India based Indian Card Clothing Company Limited filed patent application for a revolving flat cleaning, brushing and resharpening apparatus in a carding machine. The inventors are Trivedi Mehul Kunjbihari, Mistry Bankim Ishwarlal and Pal Ashok Kumar.

The Indian Card Clothing Company Limited filed the patent application on 23.07.2004. The patent application number is 784/MUM/2004 A. The international classification numbers are D01G 15/76 and D01G 15/78.

According to the Controller General of Patents, Designs and Trade Marks, "An apparatus for on card cleaning and grinding of revolving flats in a carding machine is disclosed. The apparatus mounts an interchangeable rotary cleaning brush or grinding wheel on a wheel drive so that the wheel can be spun around an axis lateral to the path of the revolving flats. During a carding operation the height of the cleaning brush is accurately adjusted by a precision feeding mechanism so that the brush cleans down to the surface of the revolving flats of the revolving flats and so cleans and polishes the wires and the fouling which commonly accumulates beneath the points of the wires. The brush can readily be replaced by a grinding wheel with a peripheral grinding surface. The height of the grinding wheel can be accurately set by the use of the precision feeding mechanism so that the wires are reground while still on the card by driving the revolving flats around the path and simultaneously spinning the grinding wheel and traversing the wheel laterally across the bare flats. The combined motions of the wheel and the flats results in a regrinding of the points which closely resembles the optimum regrinding pattern."

Indian Patent News

13.12.2010

New Delhi, December 13 -- The Indian Card Clothing Company Limited filed patent application for variable geometry metallic card clothing. The Inventors are Trivedi Mehul, Hajare Abhay Dattatraya and Kadu Suresh Shankar.

The Indian Card Clothing Company Limited filed the patent application 21.11.2001. The patent application number is 1105/MUM/2001 A. The International classification number is D01G15/84.

According to the Controller General of Patents, Designs and Trade Marks, "The variable geometry metallic card clothing wires comprises teeth of variable front, back and base angles, variable tips, pitch and tooth depth capable of creating variable carding condition for carding short as well as long fibres present within a blend of cotton being carded, in the central part of the width of the card as well as at borders, having control on air currents and distributing fibres with respect to teeth of the card clothing for improved quality of silver, higher nap removal efficiency, uniform silver and yarn properties with minimum defects."

The Indian Card Clothing Company Limited has mastered change to keep its position as a leader. With products developed to handle the evolving needs of increased rate of outputs - going as high as 150 kg/hour. And to meet more exacting quality standards worldwide. Innovation has become an ongoing process at ICC. A state-of-the-mind instilled in every employee, in every department, in every stage of the production process.

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.47.47
UK Pound	1	Rs.74.96
Euro	1	Rs.65.79

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		62

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.