MIRA INFORM REPORT

Report Date :

28.07.2012

IDENTIFICATION DETAILS

Name :	MADURA COATS PRIVATE LIMITED (w.e.f.17.06.1998)
Formerly Known As :	COATS VIYELLA INDIA LIMITED
Registered Office :	144, Mahatma Gandhi Road, P.O. Box 5145, Bangalore – 560 001, Karnataka
Country :	India
Financials (as on) :	31.12.2011
Date of Incorporation :	31.07.1974
Com. Reg. No.:	18-047421
Capital Investment / Paid-up Capital :	Rs.74.651 Millions
CIN No.: [Company Identification No.]	U18102KA1974PTC047421
TAN No.: [Tax Deduction & Collection Account No.]	BLRM05939D
PAN No.: [Permanent Account No.]	AABCM8279K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Zippers, Sliders Buttons and Sewing Accessories.
No. of Employees :	3500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 9400000
Status :	Satisfactory
Payment Behaviour :	Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory. Financial position of the company appears to be good. Trade relations are reported as fair. Business is active. Payments are reported to be correct 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, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	A1+ Short Term Debt
Rating Explanation	This rating are considered to have strong degree of safety regarding timely payment of financial obligations. Such instruments carry lowest credit rush
Date	02.07.2012

RBI DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	144, Mahatma Gandhi Road, P.O. Box 5145, Bangalore – 560 001, Karnataka, India
Tel. No.:	91-80-25584121
Fax No.:	91-80-25584229
E-Mail :	madhura@coats.com
Website :	http://www.coatsindia.com
Area :	2500 sq ft
Location :	Owned
Head Office :	7th Floor, Jupiter, 2A-Block, Prestige Technlogy Park, Sarjapur-Marathahalli Ring Road, Bangalore - 560 103, Karnataka, India
Tel. No.:	91- 80-41900400
Fax No.:	91-80-28518156
Corporate Office :	H-85, Post Box No. 1600, Old Madras Road, Bangalore – 560 016, Karnataka, India
Tel. No.:	91-80-28510911 / 28510912 / 28532674
Fax No.:	91-80-28518046 / 28518156
Factory :	madurai Ø New Jail Road, P. B. No. 35, Madurai – 625 001, Tamilnadu, India Tel. No. : 91-452-602751 Fax No. : 91-452-603130 / 602739 Ø Coats India, New Mill, Madurai Mill Compound, Madurai - 625 001, Tamilnadu, India Ø Centenary Mill, no. 8, New Ramnad Road, Madurai - 625 009, Tamilnadu, India ambasamudram Ø Water Mill, Papavinasam Mills, Ambasamudram - 627 422, Tamilnadu, India Ø Madura Textiles, Papavinasam Mills, Ambasamudram - 627 422, Tamilnadu, India Ø Export Oriented Unit : 10-A, Papanasam Main Road, Ambasamudram - 627 401, Tamilnadu, India Ø Interlining Manufacturing facility : Mela-Ambasamudram, Tirunelveli - 627 401, Tamilnadu, India tuticorin Ø 83 and 88, Beach Road, Tuticorin - 628 001, Tamilnadu, India panoli Ø 21/222, GIDC Industrial Estate, Ankleshwar, Panoli - 394 116, District Bharuch, Gujarat, India serampore Serampore (Hooghly), West Bengal - 712 201, India
Sales Offices :	Bangalore Consumer Depot Ø 216, Nagavar Palya Road, C. V. Raman Nagar, Bangalore - 560 093, Karnataka, India Ø Chitrakoot Building, H. K. House Lane, Off. Ashram Road, Navrangpura, P. B. No. 4043, Ahmedabad – 380 009, Gujarat, India Bangalore Industrial Depot Ø 46-D, Lalbagh Road, P. B. No. 2750, Bangalore – 560 027, Karnataka, India Ø Sanghavi Sadan, Off. Western Express Highway, Near Jay Coach, P. B. No, 9100, Goregaon (East), Mumbai – 400 063, Maharashtra, India Ø 203, Samudra Gaurav (II Floor), 6-A, Worli Sea Face, Abdul Gaffarkhan Road, Worli, Mumbai – 400 025, Maharashtra, India Ø Green View, 3^rd Floor, P. B. No.2725, 3^rd Floor, 19, Circus Avenue, Kolkata – 700 017, West Bengal, India Ø 19-A, Prana Nath Pandit Street, Flat NO. 2-B, Kolkata – 700 020, West Bengal, India Ø No. 2, Gurucharan Roychowdhury, Ghat Road, Shibpur, Howrah – 711 102, West Bengal, India Ø B-II/35, Mohan Co-operative Industrial Estate, Main Mathura Road, Badarpur, New Delhi – 110 044, India Ø E-1, Green Park Extn (II Floor), New Delhi - 110 016, India Ø A8-Sectro 6, Gautam Budh Nagar, Noida – 201 301, Uttar Pradesh, India Ø Cears Towers, P. B. No. 1671, Alappat Cross Road, Cochin – 682 015, Kerala, India Ø Mahatma Gandhi Road, P. B. No. 40, Fancy Bazar, Guwahati – 781 001, Assam, India Ø GF 32/33, Meghdoot, Park Road, Vijayanagar, Indore – 452 010, Madhya Pradesh, India Ø 10, Karthapura, 22, Godown Industrial Area, Jaipur – 301 206, Rajasthan, India Ø 13/6-7, Civil Lines, P. B. No, 112, Pormat, Kanpur – 208 001, Uttar Pradesh, India Ø Guru Govind Singh Nagar, Sisbro Complex, Sherpur Chowk (Hero Chowk), Behind Saini Motors, G T Road, Ludhiana – 141 003, Punjab, India Ø 37A, Velachery Main Road, Opposite Vijayanagar Bus Terminus, Chennai – 600 042, Tamilnadu, India Ø Plot No. 19, S. No. 206/3, P. B. No. 8, Viman Nagar, Nagar Road, Pune – 41 014, Maharashtra, India Ø No. 66/67, Harvey Road Tirupur – 641 602, Tamilnadu, India Ø MBN Reddy Estate, Survey No. 133, Plassy Lane Bowenpally, Secunderabad - 500 011, Andhra Pradesh, India

DIRECTORS

As on 29.03.2012

Name :

Mr. Joseph Stephen Remedios

Designation :

Chairman cum Managing Director

Address :

Villa No.B-10, Prestige Ozone, White Field Main Road, White Field, Bangalore – 560 066, Karnataka, India

Date of Birth/Age :

26.12.1951

Qualification :

B.Com. (Hons)., PGDBM

Date of Appointment :

29.03.1995

DIN No.:

00245094

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U18102KA1974PTC047421	MADURA COATS PRIVATE LIMITED	Director	01/01/2012	01/10/2002	-	Active	NO
2	U17111KA1994PLC015767	MADURA SPINNING AND MANUFACTURING LIMITED	Director appointed in casual vacancy	28/09/2006	28/09/2006	17/01/2008	Active	NO
3	U85110KA1982PTC004577	KOR INVESTMENTS PRIVATE LIMITED	Nominee director	28/09/2006	28/09/2006	01/01/2012	Active	NO
4	U85110KA1982PTC004578	VAIGAI INVESTMENTS PRIVATE LIMITED	Nominee director	28/09/2006	28/09/2006	01/01/2012	Active	NO

Name :

Mr. Anil Lasantha Naomal Dias

Designation :

Whole Time director

Address :

27/1, MEG Officers Colony, Banaswadi Main Road, Cooke Town, Bangalore – 560 005, Karnataka, India

Date of Birth/Age :

29.12.1958

Date of Appointment :

01.04.2002

DIN No.:

00245165

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U18102KA1974PTC047421	MADURA COATS PRIVATE LIMITED	Whole-time director	01/04/2002	01/04/2002	-	Active	NO
2	U01409TN1949PLC002085	MADURA AGRO INDUSTRIES LIMITED	Director appointed in casual vacancy	26/06/2006	26/06/2006	-	Dissolved	NO
3	U85110KA1982PTC004577	KOR INVESTMENTS PRIVATE LIMITED	Nominee director	28/09/2006	28/09/2006	-	Active	NO
4	U85110KA1982PTC004578	VAIGAI INVESTMENTS PRIVATE LIMITED	Nominee director	28/09/2006	28/09/2006	-	Active	NO
5	U17111KA1994PLC015767	MADURA SPINNING AND MANUFACTURING LIMITED	Director appointed in casual vacancy	29/09/2006	29/09/2006	17/01/2008	Active	NO

Name :

Mr. Roger Bevan

Designation :

Director

Address :

The Shires, 20 Wood bank Loosely Row, Buckingham Shire, United Kingdom

Date of Birth/Age :

06.04.1959

Date of Appointment :

01.07.1998

DIN No.:

00293751

Name :

Mr. Ashok Mathur

Designation :

Managing Director

Address :

E/1-131, Shobha Lavendari, Sarjapur Marathahialliring, Road, Bangalore – 560103, Karnataka, India

Date of Birth/Age :

27.03.1955

Date of Appointment :

01.01.2012

DIN No.:

05154435

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U85110KA1982PTC004577	KOR INVESTMENTS PRIVATE LIMITED	Director	01/01/2012	01/01/2012	-	Active	NO
2	U85110KA1982PTC004578	VAIGAI INVESTMENTS PRIVATE LIMITED	Director	01/01/2012	01/01/2012	-	Active	NO
3	U18102KA1974PTC047421	MADURA COATS PRIVATE LIMITED	Managing director	01/01/2012	01/01/2012	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Arup Chandra Borua
Designation :	Vice President – Finance and Company Secretary
Address :	B304, Raja Prakruthi, 4^th Cross, Jayanagar, 1^st Bloock, Bangalore – 560 011, Karnataka, India
Date of Birth/Age :	04.03.1967
Date of Appointment :	12.04.2003
Pan No.:	ACYPB5331M

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.03.2012

Names of Shareholders	No. of Shares
Coats International Pte. Limited, Singapore	7465000
Coats Industrial Threads Limited, United Kingdom	100
Total	7465100

As on 29.03.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Zippers, Sliders Buttons and Sewing Accessories.

Products :

Item Code No.	Product Description
52.04, 54.01 and 55.08	Sewing Thread Falling within the above code nos.
52.08 and 52.12, 54.07, 54.08 and 55.12 to 55.16	Apparel Fabrics Falling within the above code nos.
52.05 to 52.12, 55.07 to 55.10, 55.12 to 55.15 and 59.01, 59.02, 59.03, 59.06	Industrial Textiles falling within the above code nos.

GENERAL INFORMATION

No. of Employees :

3500 (Approximately)

Bankers :

• The Cosmsos Co-operative Bank Limited, 269-270, Shaniwar Peth, Pune-411030, Maharashtra, India
• Hong Kong and Shanghai Banking Corporation, 7 MG Road, Bangalore, Karnataka, India
• Standard Chartered Bank, Raheja Towers, M.G. Road, Bangalore, Karnataka, , India
• Canara Bank, 20, Lavelle Road, Bangalore – 560 001, Karnataka, India
• State Bank of India, Industrial Finance Branch, Residency Road, Bangalore – 560025, Karnataka, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.12.2011	As on 31.12.2010
Rupee term loans banks secured	309.375	370.636
Total	309.375	370.636
Loans from banks includes Cash Credit ,Overdraft facility from banks - Nil (31.12.10 - Rs 5,011 thousand) secured by floating charge on Stocks, Debts and other Net Current Assets of the company and term loans of Rs. 309.375 Millions ( 31.12.10 - Rs 365.625 Millions) secured by hypothecation of fixed assets purchased against the said loan.
Unsecured Loan	As on 31.12.2011	As on 31.12.2010
Deposits related parties unsecured	8.775	8.775
Total	8.775	8.775

Banking Relations :	--
Auditors :
Name :	Deloitte, Haskins and Sells Chartered Accountants
Address :	Deloitte Centre, Anchorage II, 100/2 Richmond Road, Bangalore – 560 025, Karnataka, India
Tel. No.:	91-80-66276000
Fax No.:	91-80-66276011
PAN.:	AACFD3771D
Holding Company :	Guiness Peat Group Plc
Ultimate Holding Company :	Coats International Pte. Limited, Singapore
Joint Venture :	S and P Threaeds Private Limited CIN No.: U17231DL1992PTC047458
Subsidiaries company:	Kore Investments Private Limited CIN No.: U85110KA1982PTC004577 Vaigai Investments Private Limited CIN No.: U85110KA1982PTC004578
Associate :	· China Thread Development Company Limited · Coats and Clark Usa · Coats (Turkiye) Iplik Sanayii · Coats Coats Australian Pty Limited American · Coats Bangladesh Limited · Coats Bulgaria Eood · Coats Cadena S A · Coats China Holdings Limited · Coats Corrente Limited · Coats Cucirini Srl · Coats Egypt For Manufacturing and Dyeing Sewing Thread, Spe · Coats Gmbh · Guangzhou Coats Limited · C O A T S Honduras Sa · Coats North America Consolidated Inc · Coats Hong Kong Limited · Coats Crafts Hungary Limited · Pt Coats Rejo Indonesia · Coats Industrial Thread Limited · Coats Israel · Coats Korea Company Limited · Coats Llc · C O A T S Madagascar · Coats Manila Bay Inc · Coat S Maroc · Coats Mauritius International Company Limited · Coats Mexico S A De Cv · S C Coats Odorhei Srl · Coats Opti Oy · Coats Opti Shenzhen Limited · Coats Phong Phu Company Limited · Coats Opti Germany Gmbh · Coats Polska Sp Zoo · C O A T S Shanghai Limited · C O A T S Shenzhen Limited · Coats South Africa (Pty) Limited · Coats Thread (Thailand) Limited · Coats Thread Lanka Private Limited · Coats Thread Malaysia Sdn Bhd · Coats Trading Tunisie · C O A T S Ukraine Limited · Coats Zimbabwe (Private) Limited · J and P Coats Pakistan (Private) Limited · Tianjin Jinying Spinning Company Limited · The Central Agency Limited UK · J and P Coats Limited UK · Coats Thread Exports Private Limited · Sc Coats Romania Impex Srl · J and P Coats (Mauritius) Limited · Steiner Freres Sa · Coats Opti Oy – Unilever · Coats Thread Italy Srl

CAPITAL STRUCTURE

As on 31.12.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
100000000	Equity Shares	Rs.10/- each	Rs.1000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7465100	Equity Shares	Rs.10/- each	Rs.74.651 Millions

6. 7,465,000 Equity Shares are held by the Holding Company, Coats International Pte Limited, Singapore w.e.f. March 26, 2010 (31.12.2010 - 8,800,000 Equity Shares) which is wholly owned subsidiary of Guiness Peat Group and its nominees.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2011	31.12.2010	31.12.2009
SHAREHOLDERS FUNDS
1] Share Capital		74.651	88.001	88.001
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2276.708	2766.547	2738.541
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2351.359	2854.548	2826.542
LOAN FUNDS
1] Secured Loans		309.375	370.636	424.929
2] Unsecured Loans		8.775	8.775	8.775
TOTAL BORROWING		318.150	379.411	433.704
DEFERRED TAX LIABILITIES		36.000	46.000	64.000
Deferred Government Grant (TUFS Cap subsidy)		2.667	3.665	4.663
TOTAL		2708.176	3283.624	3328.909
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1687.852	1580.141	1584.253
Capital work-in-progress		84.825	271.186	76.518
INVESTMENT		1117.010	1829.096	1741.182
DEFERREX TAX ASSETS			0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1793.720	1554.450	1356.114
	Sundry Debtors	2189.855	1753.254	1696.521
	Cash & Bank Balances	240.348	210.303	232.806
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	510.758	524.805	444.379
Total Current Assets		4734.681	4042.812	3729.820
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1422.926	1194.178	1518.336
	Other Current Liabilities	3109.700	2682.451	2039.985
	Provisions	383.566	562.982	244.543
Total Current Liabilities		4916.192	4439.611	3802.864
Net Current Assets		(181.511)	(396.799)	(73.044)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2708.176	3283.624	3328.909

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.12.2011	31.12.2010
	SALES
		Turnover		115.976	98.656
		Other Income		NA	NA
		TOTAL (A)		NA	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses		NA	NA
		Advertising Expenses
		TOTAL (B)		NA	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			10.280	10.642
Less	FINANCIAL EXPENSES (D)			1.066	0.688
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			9.214	9.954
Less/ Add	DEPRECIATION/ AMORTISATION (F)			2.788	2.637
	PROFIT BEFORE TAX (E-F) (G)			6.426	7.317
Less	TAX (H)			1.970	2.431
	PROFIT AFTER TAX (G-H) (I)			4.456	4.886
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			22.475	22.683
Less	Adjustment for buyback of shares			1.912	0.000
Less	APPROPRIATIONS
		Transfer to General Reserve		0.446	0.488
		Dividend		2.053	3.124
		Tax on Dividend		0.333	0.507
		Transfer to Interim Dividend		0.000	0.836
		Corporate Tax on Interim Dividend		0.000	0.139
	BALANCE CARRIED TO THE B/S			22.187	22.475
	Earnings Per Share (Rs.)			56.51	55.52

KEY RATIOS

PARTICULARS		31.12.2011	31.12.2010	31.12.2009
PAT / Total Income	(%)	NA	NA	NA
Net Profit Margin (PBT/Sales)	(%)	NA	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	0.10	0.13	NA
Return on Investment (ROI) (PBT/Networth)		0.00	0.00	NA
Debt Equity Ratio (Total Liability/Networth)		2.23	1.70	1.50
Current Ratio (Current Asset/Current Liability)		0.96	0.91	0.98

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	(Yes)
5]	Type of Business	(Yes)
6]	Line of Business	(Yes)
7]	Promoter's background	(Yes)
8]	No. of employees	(Yes)
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 two 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	(Yes)
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 involved in	----------------------
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)
31]	PAN of Proprietor/Partner/Director, if available	(No)
32]	Passport No of Proprietor/Partner/Director, if available	(No)
33]	Voter ID No of Proprietor/Partner/Director, if available	(No)

Note:

The registered office of the company has been shifted from New Jail Road, Madurai -625001, Tamilnadu, India to present address w.e.f. 03.07.2008

REVIEW OF THE YEAR:

The first quarter of the year was characterised by buoyant demand, accompanied by increased inflation and poor availability of key raw material inputs within the Industry. This enabled the company to increase selling prices, more than compensating for raw material at conversion cost inflation. However, from Q2 onwards global recessionary conditions adversely impacted their key customer segment of Ready Made Garment exporters, while weak sentiments also prevailed in segments catering to domestic demand on the back of high local inflation. During this period the company was able to retain much of the pricing advantage gained during Q1, but suffered with the rest of the Industry in terms of sales activity. As such, the turnover growth of 17.6% was a creditable achievement against the backdrop of weak market conditions during the last three quarters of the year and was entirely on account of successful selling price movements.

The fortunes of the company were supported during these difficult times by the increased use by Group markets of India as a supply base, resulting in significant increases in exports to the Group. Overall exports grew by 31.5% representing 30.5% of total turnover (last year 27.3%).

Profit before tax, however, declined against the previous year due to a number of exceptional items in the comparison. These included; profit on disposal of properties in 2010 not repeated in 2011, exchange losses in 2011 on the back of the unprecedented weakening of the INR against the USD, partially mitigated by compensation received by then this year from a 3rd party power supplier arising from this party's breech of contract and a lower gratuity charge required in 2011 in comparison to the higher charge taken in 2010 consequent to minimum gratuity limits being raised that year.

The company continued to focus on overall productivity and cost reduction initiatives, which helped then to improve profitability during a difficult trading year.

OUTLOOK

Given that weak economic conditions globally have not shown any material signs of reversing, prospects for at least the I half of 2012 will remain uncertain. Adding to the uncertainty is the continuing crisis in Euro zone markets who are key exporters of Garments and Footwear from their customers in India. They are more hopeful of sentiment around domestic demand improving. They will continue to actively participate in the Global Thread Supply Chain of the Group, which will support their exports.

However, domestic competitions are expected to remain aggressive and even escalate in the face of weaker demand. As such, they will continue to maintain their focus on productivity and cost competitiveness, while striving to ensure an overall offer to their customers which is superior to that of their competitors.

CONTINGENT LIABILITIES NOT PROVIDED FOR

Rs. In Millions

Particular	31.12.2011	31.12.2010
Claims not acknowledged as debts (excluding interest claimed from the date of filing case) Net of tax Rs. 93.875 Millions (31.12.10 - Rs. 190.713 Millions) These comprise of: Sales tax claims disputed by the company - Rs.24.128 Millions (31.12.10 - Rs. 36.346 Millions) paid under protest Rs.3.677 Millions (31.12.10 - Rs 4.253 Millions) ] Labor related matters - Rs. 16.242 Millions. ( 31.12.10- Rs 20.499 Millions) Property Tax disputes - Nil ( 31.12.10 - Rs. 146.000 Millions) Legal Disputes - Rs. 98.591 Millions ( 31.12.10 - Rs.82.740 Millions)	138.961	285.585
Guarantees given by banks for which the Company has issued counter guarantees	29.312	18.438
Undertakings given for concessional import duties in respect of outstanding export obligations	178.734	156.355
Disputed demands under appeal Excise Duty Rs.871.590 Millions ( 31.12.10 – 879.865 Millions) [paid under protest Rs. 7.652 Millions (31.12.10 Rs. 5.207 Millions)] Income Tax matters - Rs 74.000 Millions ( 31.12.10 - Rs.71.000 Millions)	945.590	950.865

Bankers Charges Report as per Registry

Corporate identity number of the company	U18102KA1974PTC047421
Name of the company	MADURA COATS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	144, M.G. Road, Bangalore – 560001, Karnataka, India madura@coats.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80026923
Type of charge	· Book debts · Floating charge · Others (Stocks, all together on parri passu basis)
Particular of charge holder	State Bank of India, Industrial Finance Branch, Residency Road, Bangalore – 560025, Karnataka, India sbi.09077@sbi.co.in
Nature of instrument creating charge	Agreement of hypothecation of goods and assets dated 22 Feb 2012
Date of instrument Creating the charge	22.02.2012
Amount secured by the charge	Rs.700.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Presently 3.50% above SBI base rate (current effective rate is 10% plus 3.50% = 13.50%) Terms of Repayment On Demand Margin 25% Extent and Operation of the charge Continuing security by way of paripassu floating charge for the due repayment on demand on the bank of all moneis including the principal sums, interests and other monies payable from time to time and for the time being to the bank in respect of the said credit facilities. The securities charged shall be shared between sbi, standard chartered bank , hongkong and shanghai banking corporation Limited on a paripassu basis
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of all present and future stocks and book debts on a floating charge basis across all locations (Factories, Depots, etc) of the Company
Date of instrument modifying the charge	21.03.2007
Particulars of the present modification	Modification In Amount Secured By The Charge - Reduction In The Aggregate Sum of The Credit Facilities From Rs 775.000 Millions To Rs 700.000 Millions..

FIXED ASSETS:

· Freehold Land

· Leasehold Land

· Buildings

· Machinery

· Furniture and Fittings

· Vehicles

· Computer

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.55.41
UK Pound	1	Rs.86.93
Euro	1	Rs.68.10

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	5
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		52

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.