MIRA INFORM REPORT

Report Date :

06.04.2012

IDENTIFICATION DETAILS

Name :	APM INDUSTRIES LIMITED
Registered Office :	SP-147, RICO Industrial Area, Bhiwadi-301019, Rajasthan
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.09.1973
Com. Reg. No.:	17-015819
Capital Investment / Paid-up Capital :	Rs. 43.223 Millions
CIN No.: [Company Identification No.]	L21015RJ1973PLC015819
Legal Form :	A Public limited liability company. The company shares are listed to the Stock Exchanges
Line of Business :	The Company is engaged in the manufacturing and marketing of synthetic blended yarn.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 5000000
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 good. 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 :	SP-147, RICO Industrial Area, Bhiwadi-301019, Rajasthan, India
Tel. No.:	91-1493-220433
Fax No.:	91-1493-220228
E-Mail :	os.bhiwadi@orientsyntex.com
Head Office :	2-Braourne Road, Kolkata-700001, West Bengal, India
Corporate Office :	910, Chiranjiv Tower, 43, Nehru Place, New Delhi-110019, India
Tel. No.:	91-11-26441015 / 17
Fax No.:	91-11-26441018

DIRECTORS

AS ON 31.03.2011

Name :	Mr. R K Rajgarhia
Designation :	Chairman and Managing Director
Name :	Mr. R L Toshniwal
Designation :	Director
Name :	Mr. K R Gupta
Designation :	Director
Name :	Mr. S G Rajgarhi
Designation :	Director
Name :	Mr. R R Bagri
Designation :	Director
Name :	Mr. H R Sharma
Designation :	Executive Director

KEY EXECUTIVES

Name :	Mr. F C Goel
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2011

Category of Shareholder	No. of Shares	% of No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	9,063,481	41.94
Bodies Corporate	4,510,290	20.87
Sub Total	13,573,771	62.81
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	13,573,771	62.81
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	1,250	0.01
Sub Total	1,250	0.01
(2) Non-Institutions
Bodies Corporate	656,583	3.04
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1,430,612	6.62
Any Others (Specify)	108,404	0.5
Non Resident Indians	108,404	0.5
Sub Total	8,036,339	37.19
Total Public shareholding (B)	8,037,589	37.19
Total (A)+(B)	21,611,360	100
(1) Promoter and Promoter Group	-	-
Total (A)+(B)+(C)	21,611,360	-

BUSINESS DETAILS

Line of Business :

The Company is engaged in the manufacturing and marketing of synthetic blended yarn.

Products :

ITC CODE	PRODUCT
550,912	Man – Made Fiber’s Spun Yarn

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Man – Made Fiber’s Spun Yarn	Kgs.	50336	15259300

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Punjab National Bank

· State Bank of Bikaner and Jaipur

· IDBI Bank Limited

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Term Loans (under TUF Scheme)
IDBI Bank Limited	89.061	97.200
State Bank of Bikaner and Jaipur Limited	141.170	166.079
Punjab National Bank Limited	42.383	56.504
Working Capital Loans (Banks)
Rupee Loan	205.909	162.599
Export Packing Credit	31.947	30.854
Bill Discounting	74.173	50.757
Other Loans
Vehicle Loans from Banks	4.094	5.605
Vehicle Loans from Others	0.623	0.741
Total	589.360	570.339
Notes: 1. Term loans are secured by joint mortgage by deposit of title deeds of the Company’s immovable properties situated at Bhiwadi and charge on all immovable and movable assets, both present and future, except book debts subject to prior charge created on specified movable assets in favour of Company’s bankers ranking pari-passu for working capital facilities and guaranteed by Chairman and Managing Director of the Company. 2. Working capital loans are secured by hypothecation of inventories, book debts, receivables and other movable assets and also by second charge on Company’s immovable properties situated at Bhiwadi ranking pari-passu between the Banks/ FI‘S and guaranteed by Chairman and Managing Director of the Company. 3. Vehicle Loans are secured by hypothecation/ Lien of the respective vehicles. 4. Term loans repayable within one year Rs. 52.993 Millions (Rs. 53.404 Millions) 5. Vehicle Loans repayable within one year Rs. 2.522 Millions (Rs. 2.034 Millions)
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
From Director	4.250	0.000
From Bodies Corporate	88.518	30.085
Total	92.768	30.085

Banking Relations :	--
Auditors :
Name :	Chaturvedi and Company Chartered Accountants
Companies under common control with whom transactions have taken place during the year :	· Orient Abrasives Limited · Perfectpac Limited · Rajgarhia Leasing and Financial Services Private Limited · AJR Fiscal Private Limited · Faridabad Paper Mills Limited · Axis Cottex Private Limited · Ess Vee Fiscal Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
35000000	Equity Shares	Rs.2/- each	Rs. 70.000 Millions
300000	Preference Shares	Rs.100/- each	Rs. 30.000 Millions
	Total		Rs. 100.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
22217080	Equity Shares	Rs.2/- each	Rs. 44.434 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
21611360	Equity Shares	Rs.2/- each	Rs. 43.223 Millions

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		43.223	43.223	43.223
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1213.070	1099.953	1044.974
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1256.293	1143.176	1088.197
LOAN FUNDS
1] Secured Loans		589.360	570.339	569.334
2] Unsecured Loans		92.768	30.085	70.847
TOTAL BORROWING		682.128	600.424	640.181
DEFERRED TAX LIABILITIES		71.551	66.951	44.405
TOTAL		2009.972	1810.551	1772.783
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1255.116	1273.185	1277.792
Capital work-in-progress		1.079	7.893	0.000
INVESTMENT		17.597	17.597	17.597
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	423.059	266.338	230.254
	Sundry Debtors	314.598	212.461	190.734
	Cash & Bank Balances	6.959	6.977	6.379
	Other Current Assets	32.906	17.689	9.015
	Loans & Advances	126.550	132.600	137.136
Total Current Assets		904.072	636.065	573.518
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	66.307	50.246	27.704
	Other Current Liabilities	66.225	55.427	50.400
	Provisions	35.360	18.516	18.020
Total Current Liabilities		167.892	124.189	96.124
Net Current Assets		736.180	511.876	477.394
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2009.972	1810.551	1772.783

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2414.165	1960.745	1828.964
		Other Income	6.880	3.638	12.395
		TOTAL (A)	2421.045	1964.383	1841.359
Less	EXPENSES
		Raw Material Consumed	1573.614	1243.840	1168.784
		Manufacturing and Operating Expenses	343.479	311.842	274.924
		Personnel Expenses	206.652	171.451	164.321
		Administrative and Selling Expenses	54.774	51.628	59.829
		Increase / (Decrease) in stocks	(63.287)	2.745	63.443
		TOTAL (B)	2115.232	1781.506	1731.301
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		305.813	182.877	110.058
Less	FINANCIAL EXPENSES (D)		39.171	40.809	50.131
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		266.642	142.068	59.927
Less/ Add	DEPRECIATION/ AMORTISATION (F)		47.137	45.525	43.864
	PROFIT BEFORE TAX (E-F) (G)		219.505	96.543	16.063
Less	TAX (H)		81.326	30.573	5.421
	PROFIT AFTER TAX (G-H) (I)		138.179	65.970	10.642
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		226.206	271.700	261.058
Less	APPROPRIATIONS
		Transfer to General Reserve	100.000	111.464	0.000
		Dividend	12.967	0.000	0.000
		Tax on Dividend	2.104	0.000	0.000
	BALANCE CARRIED TO THE B/S		249.314	226.206	271.700
	EARNINGS IN FOREIGN CURRENCY		169.551	168.740	NA
	IMPORTS
		Stores & Spares	0.985	1.904	0.811
	TOTAL IMPORTS		0.985	1.904	0.811
	Earnings Per Share (Rs.)		6.39	3.05	2.46

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011
	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	615.400	833.800	572.600
Total Expenditure	531.000	751.700	515.100
PBIDT (Excl OI)	84.400	82.100	57.500
Other Income	1.600	4.500	2.100
Operating Profit	86.000	86.600	59.600
Interest	13.400	11.400	5.900
Exceptional Items	0.000	0.000	0.000
PBDT	72.600	75.200	53.700
Depreciation	11.300	11.500	11.700
Profit Before Tax	61.300	63.700	42.000
Tax	19.200	22.900	14.100
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	42.100	40.800	27.900
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	42.100	40.800	27.900

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.71	3.36	0.58
Net Profit Margin (PBT/Sales)	(%)	9.09	4.92	0.88
Return on Total Assets (PBT/Total Assets}	(%)	10.17	5.06	0.87
Return on Investment (ROI) (PBT/Networth)		0.17	0.08	0.01
Debt Equity Ratio (Total Liability/Networth)		0.73	69.24	0.72
Current Ratio (Current Asset/Current Liability)		5.38	5.12	5.97

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS

During the year 2010-11, the company’s performance has improved significantly. The net profit recorded a growth of 109% from Rs.66.000 Millions to Rs.138.200 Millions while the turnover grew by 24% from Rs.1968.600 Millions to Rs.2435.000 Millions. The main contributors to the increase of profits was the product mix and a favourable market.

The earnings per share for the year 2010-11 works out to Rs.6.39 as compared to previous year Rs.3.05.

EXPORTS

During the year 2010–11, the export turnover at Rs.221.700 Millions, as against Rs.197.000 Millions during 2009-10, an increase of 13%.

MANAGEMENT DISCUSSION AND ANALYSIS

The core business of the Company is manufacturing and marketing of synthetic blended yarn. The management discussion and analysis is given below:

Industry structure and development

Large numbers of textile manufacturers in India have expanded their production capacity due to Technology Upgradation Fund Scheme (TUFS), which allowed interest subsidy. With the growth in the domestic market, thus capacity expansion has started paying yield. The world economy has also shown initial indications of recovery and with the Rupee once again becoming attractive; the Indian Industry has started looking up and is full of enthusiasm in expectation of increased profitability.

Textile is the 2nd largest employment generating industry in the country. Therefore, the Government is continuously extending support for growth of this segment.

Segment-wise performance

The Company has only one line of business, namely, manufacturing of Synthetic Blended Yarn. The Company has no activity outside India except export of yarn manufactured in India; therefore, there is no geographical segment.

Outlook

The company continues to concentrate on modernization-cum-balancing of equipments. This would results in higher production and help in producing more value added products. Coupled with expected better market condition, this would increase the sales and profitability of the company.

FIXED ASSETS

· Lease Hold Land and Building

· Plant and Machinery

· Furniture and Fixtures

· Office Equipments

· 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. 51.04
UK Pound	1	Rs. 81.08
Euro	1	Rs. 67.39

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	4
--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		51

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.