MIRA INFORM REPORT

Report Date :

28.04.2012

IDENTIFICATION DETAILS

Name :	ARISUDANA INDUSTRIES LIMITED
Registered Office :	B-XXIX /143, Giaspura Road, G.T. Road, Ludhiana – 141003, Punjab
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	18.12.1995
Com. Reg. No.:	16-017453
Capital Investment / Paid-up Capital :	Rs.74.000 Millions
CIN No.: [Company Identification No.]	U24123PB1995PLC017453
TAN No.: [Tax Deduction & Collection Account No.]	JLDA01602G
PAN No.: [Permanent Account No.]	AABCA2449K
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of a comprehensive range of Polyester Yarn, Acrylic Yarn, Viscose Yarn, Air Jet Yarn, Vortex Yarn, and more.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 1000000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, 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 cautions.

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 :	B-XXIX /143, Giaspura Road, G.T. Road, Ludhiana – 141003, Punjab, India
Tel. No.:	91-161-2542488 / 5028859
Mobile No.:	91-9914142044 (Gagan Khanna)
Fax No.:	91-161-2530015
E-Mail :	info@aruisudana.com
Website :	www.arisudana.com

DIRECTORS

As on 30.09.2011

Name :

Mr. Gagan Khanna

Designation :

Whole – Time Director

Address :

164/10, Singhpura, Barewal Colony Abadi, Ludhiana – 141001, Punjab, India

Date of Birth/Age :

31.10.1962

Date of Appointment :

18.12.1995

DIN No.:

00601358

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24123PB1995PLC017453	ARISUDANA INDUSTRIES LIMITED	Whole-time director	1/4/2010	18/12/1995	-	Active	NO
2	U70109PB2011PTC034696	GOPALJEE LAND DEVELOPERS PRIVATE LIMITED	Director	17/02/2011	17/02/2011	-	Active	NO

Name :

Mr. Kewal Kumar Khanna

Designation :

Whole – Time Director

Address :

164/10, Singhpura, Barewal Colony Abadi, Ludhiana – 141001, Punjab, India

Date of Appointment :

18.12.1995

DIN No.:

00601404

Name :

Mr. Sidharth Khanna

Designation :

Whole – Time Director

Address :

164/10, Singhpura, Barewal Colony Abadi, Ludhiana – 141001, Punjab, India

Date of Appointment :

06.04.2010

DIN No.:

03081356

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24123PB1995PLC017453	ARISUDANA INDUSTRIES LIMITED	Whole-time director	6/4/2010	6/4/2010	-	Active	NO
2	U70109PB2011PTC034696	GOPALJEE LAND DEVELOPERS PRIVATE LIMITED	Director	17/02/2011	17/02/2011	-	Active	NO

Name :

Mr. Surinder Mohan Jalota

Designation :

Director

Address :

Olympic Wollen Mills, Chandigarh, Road, Ludhiana – 141008, Punjab, India

Date of Birth/Age :

29.03.1939

Date of Appointment :

07.05.2002

DIN No.:

00871110

Name :

Mr. Hariesh Chander Kaura

Designation :

Whole – Time Director

Address :

304 G, BRS Nagar, Ludhiana, Punjab, India

Date of Birth/Age :

25.02.1964

Date of Appointment :

08.02.1996

DIN No.:

01271528

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Major Shareholders Not Available

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	99.75
Other top fifty shareholders	0.25
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and exporter of a comprehensive range of Polyester Yarn, Acrylic Yarn, Viscose Yarn, Air Jet Yarn, Vortex Yarn, and more.

Products :

• Viscose Yarn
• Polyester Yarn
• Acrylic Yarn

Product Description	ITC Code
Acrylic Yarn and Polyester Yarn	55.09

PRODUCTION STATUS (As On 31.03.2011)

Particulars	Unit	Actual Production
	Kgs	1813478.500
Acrylic Waste	Kgs	24172.300*
Polyester yarn	Kgs	6409106.345
Polyester/Viscoce waste	Kgs	142988.400
Viscose Yarn	Kgs	500.000@
PC Yarn	Kgs	466.00

* includes 4479.700(p.y. 5180.60) kgs re-used for production of Acrylic yarns)

@ consists of reprocessing of yarn

GENERAL INFORMATION

Suppliers :

• Centos Synthetics Mumbai
• Chahal Electricals Ludhiana
• Chemax Multikotes India Private Limited Mumbai
• Color Crafts Private Limited Ludhiana
• Compac Technologies (India) Limited
• Dhruv International Ludhiana
• Eastern Engineers Ludhiana
• Emron Engineers
• Essar Engineers Chandigarh
• Excel Laminators Ludhiana
• Federal Express Corporation
• Fedex Express Services (India) Private Limited
• Garg Mill St
• Gee Tech Tubes
• Gill Logistics Ludhiana
• Goyal Electro System Ludhiana
• Gursewak Enterprises
• Habasit Iak Oka Private Limited Coimbatore
• Innovative Engitech Private Limited
• Ishpreet Infosys Ludhiana
• M Manpower and Security Private Limited Ludhiana

Customers :

• Polycrest Innovation (India) Private Limited
• Pratibha Syntex Limited
• Priyanka Sales Corporation Ahmedabad
• Pyare Lal Handa and Sons Ludhiana
• R.P.Singhania and Company Ludhiana
• Rakesh Trading Company
• Shakun Enterprises Ludhiana
• Sharman Traders Ludhiana
• Shiva Texfab Limited
• Vidyut Insulation Private Limited

No. of Employees :

Not Available

Bankers :

• State Bank of Patiala, Commercial Branch, Miller GANJ, Ludhiana – 141003, Punjab, India
• ICICI Bank
• HDFC Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
BANK OF INDIA
TERM LOAN (Term loan secured by hypothecation of Plant and Machinery, Fixed and other Assets of the company, equitable mortgage of factory land and building at village jaspalon, ludhiana and personally guaranteed by three Directors of company) (Term Loan Due For Repayment Within One Year is Rs3.357 Millions)	141.748	166.176
CASH CREDIT LIMITS (Secured by hypothecation of stocks, book debts, other assets of the company, equitable mortgage of factory land and building at village jaspalon, ludhiana and personally guaranteed by three Directors of company)	93.953	31.135
CAR LOANS (Secured by hypothecation of car and equitable mortgage of factory land and bulding at village jaspalon, ludhiana and personally guaranteed by three Directors of company)	0.165	0.00
Total	235.866	197.311
Unsecured Loan	As on 31.03.2010	As on 31.03.2009
From Banks	6.738	0.000
From Directors And Their Relatives	31.631	42052
Total	38.369	42052

Banking Relations :	--
Auditors :
Name :	Dass Khanna and Company Chartered Accountants
Address :	B-XX - 2815, Gurdev Nagar, Pakhowal Road, Ludhiana – 141001, Punjab, India
Tel. No.:	91-161-2403029 / 2401230
Mobile No.:	91-161-2409672

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital : Rs.110.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.74.000 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
8000000	Equity Shares	Rs.10/- each	Rs.80.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7400000	Equity Shares	Rs.10/- each	Rs.74.000 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		74.000	74.000	74.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		181.077	194.128	192.788
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		255.077	268.128	266.788
LOAN FUNDS
1] Secured Loans		235.866	197.311	188.109
2] Unsecured Loans		38.369	42.052	49.804
TOTAL BORROWING		274.235	239.363	237.913
DEFERRED TAX LIABILITIES		16.370	0.000	0.000
TOTAL		545.682	507.491	504.701
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		292.891	302.752	327.924
Capital work-in-progress		0.140	0.000	0.000
INVESTMENT		4.684	4.684	4.684
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	146.209	113.180	78.742
	Sundry Debtors	57.113	27.692	21.676
	Cash & Bank Balances	1.321	0.922	1.365
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	80.278	83.490	87.163
Total Current Assets		284.921	225.284	188.946
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	23.715	17.000	11.801
	Other Current Liabilities	13.239	8.673	5.609
	Provisions	0.000	0.000	0.000
Total Current Liabilities		36.954	25.673	17.410
Net Current Assets		247.967	199.611	171.536
MISCELLANEOUS EXPENSES		0.000	0.444	0.557
TOTAL		545.682	507.491	504.701

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating revenue, net	1086.545	847.794	763.989
		Other Income	5.691	9.371	32.183
		TOTAL (A)	1092.236	857.165	796.172
Less	EXPENSES
		Consumption materials changes inventories	846.592	634.720
		Manufacturing service costs	130.864	134.325
		Employee related expenses	13.514	11.399	740.615
		Administrative selling other expenses	25.045	14.238
		TOTAL (B)	1016.015	794.682	740.615
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		76.221	62.483	55.557
Less	FINANCIAL EXPENSES (D)		21.598	16.439	16.807
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		54.623	46.044	38.750
Less/ Add	DEPRECIATION/ AMORTISATION (F)		45.456	42.204	36.625
	PROFIT BEFORE TAX (E-F) (G)		9.167	3.840	2.125
Less	TAX (H)		5.500	2.500	1.000
	PROFIT AFTER TAX (G-H) (I)		3.667	1.340	1.125
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		68.928	67.588	66.463
Less	Depreciation Adjustment prior Periods		(0.981)	0.000	0.000
Less	APPROPRIATIONS
		Transfer to General Reserve	17.000	0.000	0.000
		Capital Redemption Reserve	20.000	0.000	0.000
	BALANCE CARRIED TO THE B/S		35.876	68.928	67.588
	TOTAL EARNINGS		65.429	64.408	NA
	TOTAL IMPORTS		4.264	39.436	27.199
	Earnings Per Share (Rs.)		0.94	0.21	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.34	0.16	0.14
Net Profit Margin (PBT/Sales)	(%)	0.84	0.45	0.28
Return on Total Assets (PBT/Total Assets}	(%)	1.59	0.73	0.41
Return on Investment (ROI) (PBT/Networth)		0.04	0.01	0.01
Debt Equity Ratio (Total Liability/Networth)		1.22	0.99	0.96
Current Ratio (Current Asset/Current Liability)		7.71	8.78	10.85

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last two years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

FINANCIAL RESULTS

During the year under consideration the turnover of the company is Rs.1092.200 Millions against the last year Turnover of Rs.857.200 Millions. Net profit is Rs.9.168 Millions against Rs.3.841 Millions for the last year. The Export turnover of the company is Rs.0.654 Millions through direct or indirect export. Company is exploring new markets to enhance the export turnover and profitability of the company.

Company is expending its production capacity at unit at Jaspalon, Ludhiana by installing another 17472 Spindles for manufacturing of polyester yarn with an estimated capital outlay of about Rs.500.000 Millions. The proposed expansion will result in increase in production and profitability drastically in years to come.

CONTINGENT LIABILITIES

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010
Demand of interest u/s 220(2) of Income Tax Act, 1961 for A.Y. 1997-98 and 1998-99(net of deposit of Rs.0.618 Million).	1.443	2.061

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24123PB1995PLC017453
Name of the company	ARISUDANA INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	B Xxix/143giaspura Road, G T Road, Ludhiana – 141003, Punjab, India info@aruisudana.com
This form is for	Creation of charge
Type of charge	Immovable property Book debts Movable property (not being pledge) Others (Stocks)
Particular of charge holder	Bank of India, MID Corporate Branch, Model Town, Ludhiana – 141002, Punjab, India mcb.ludhiana@bankofindia.co.in
Nature of instrument creating charge	Hypothecation cum loan agreement ( plant and Machinery, stock and book debts) IFD/X
Date of instrument Creating the charge	01.02.2012
Amount secured by the charge	Rs.711.100 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 2.25% above the base rate (10.75% floating), presently 13% at monthly rests. Terms of Repayment TL are repayable in monthly installments as per repayment schedule. WC Limits are repayable on demand. Margin TL IV-34% TL V- 29% TL VI-20.88% CC Stock-25%, CC- BD 90 days--30% EPC 25% IBP/FBP/FBD-DP/DA 90--nil LC-DP/DA 90 DAYS --10% Capex FLC--15% Extent and Operation of the charge 100% Others TLIV- Rs.30.700 Millions, TL V-- Rs.100.400 Millions and TL VI-- Rs.360.000 Millions. One Time Capex LC( Foreign) within the TL for Rs.110.000 Millions. The overall WC Limit of Rs.220.000 Millions is divided as under: CC- Stock- 220.000 Millions, CC Stock- Rs. 100.000 Millions, EPC—Rs.80.000 Millions, IBP/FBP/FBD-DP/DA 90days--- Rs.80.000 Millions. Max. WCFBL—Rs.220.000 Millions. NFB LC(I/F) DP-DA- 90 days within WCFBL—Rs.20.000 Millions.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Exclusive charge on factory land and Building, Plant and Machinery and other mics. fixed assets. Equitable mortgage of Land and Building at Jaspalon, Ludhiana measuring 104 Kanal 18 Merlas and Gaispura Ludhiana measuring 14 kanal 10 marlas as per detail given in schedules. Exclusive Hypothecation charge of stock and book debts.

FIXED ASSETS

• Land
• Building
• Machinery
• Generator
• Electric Fitting
• Water Cooler
• Water Tank
• Furniture
• Fire Extinguisher
• Weighing Scale
• Transformer
• Moped
• Air Conditioner
• Computer
• Car
• Scooter / Motorcycle
• Television
• Refrigerator
• EPBX
• Photostate
• Video Camras
• Fax
• Mobile Set
• Tempo
• Water Pump

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.52.68
UK Pound	1	Rs.85.12
Euro	1	Rs.69.38

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	2
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		29

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.