MIRA INFORM REPORT

Report Date :

28.07.2012

IDENTIFICATION DETAILS

Name :	RAYMOND UCO DENIM PRIVATE LIMITED
Registered Office :	New Hind House, Narottam Morarji Marg, Ballard Estate, Fort, Mumbai – 400 001, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	26.05.2006
Com. Reg. No.:	11-162450
Capital Investment / Paid-up Capital :	Rs.443.344 Millions
CIN No.: [Company Identification No.]	U17115MH2006PTC162450
TAN No.: [Tax Deduction & Collection Account No.]	NPGU01513B
PAN No.: [Permanent Account No.]	AAACU8272H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Denim Fabrics and Garments.
No. of Employees :	1800 (Approximately)

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 6933000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a joint venture between Raymond’s Limited and UCO NV of Belgium. It is an established company having moderate track. There appears huge accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. In view of strong promoters 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	ICRA
Rating	BBB- (Long Term)
Rating Explanation	Moderate Credit Risk
Date	January 12, 2011

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 :	New Hind House, Narottam Morarji Marg, Ballard Estate, Fort, Mumbai – 400 001, Maharashtra, India
Tel. No.:	91-22-40368323/ 40366152/ 22686000/ 40367000
Fax No.:	91-22-25349958/ 22620052/ 25337761
E-Mail :	shripad.deshpande@raymond.in uma.ram@raymond.in
Website :	www.raymondindia.com
Area :	4000 sq ft
Location :	Owned
Marketing Office :	Jekegram, Pokhran Road No.1, Thane – 400 606, Maharashtra, India
Tel. No.:	91-22-40368323/ 40367000/ 61528312
Fax No.:	91-22-25349958/ 25337761
Plant :	Plot No.C-1, MIDC, Lohara, Yavatmal – 445 001, Maharashtra, India
Tel. No.:	91-7232-304500/ 304545
Fax No.:	91-7232-249237
Overseas Office :	Located at: v United States of America v Belgium v Romania

DIRECTORS

As on 14.07.2011

Name :

Dr. Vijaypat Singhania

Designation :

Director

Address :

J.K. House, 59 A, Bhulabhai Desai Road, Mumbai – 400 026, Maharashtra, India

Date of Birth/Age :

04.10.1938

Date of Appointment :

08.08.2006

DIN No.:

00020063

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	U67120MH1945PLC004603	J K Investors Bombay) Limited	Director	04-01-64	04-01-64	-	Active	NO
2	U99999MH1947PLC005735	J.K. Investo Trade (India) Limited	Director	31-03-64	31-03-64	-	Active	NO
3	L17117MH1925PLC001208	Raymond Limited	Director	29-06-71	29-06-71	-	Active	NO
4	U51109MH1948PLC006460	Raymond Apparel Limited	Director	25-03-80	25-03-80	-	Amalgamated	NO
5	U99999MH1964PLC012865	J.K. elene Curtis Limited	Director	26-09-84	26-09-84	-	Active	NO
6	U24241MH1990PTC055034	Silver Soaps Private Limited	Director	13-08-91	13-08-91	-	Active	NO
7	U67120MH1990PTC133784	Smart Investments Private Limited	Director	21-03-94	21-03-94	-	Active	NO
8	U25199MH1996PLC100697	J K Ansell Limited	Director	08-10-97	08-10-97	-	Active	NO
9	U92110MH2002PLC136949	Radha Krshna Films Limited	Director	23-08-02	23-08-02	-	Active	NO
10	U17115MH2006PTC162450	Raymond UCO Denim Private Limited	Director	12-06-07	08-08-06	-	Active	NO
11	U17120MH2004PTC149277	Platinum Fashion Apparel Private Limited	Director	24-06-09	14-05-08	21-01-10	Active	NO
12	U52320MH2004PTC149312	Trident Retail Ventures Private Limited	Director	22-07-09	27-10-08	21-01-10	Active	NO
13	U18109TN2006PLC061384	Raymond Apparel Limited	Director	28-07-11	27-07-11	-	Active	NO

Name :

Mr. Gautam Hari Singhania

Designation :

Director

Address :

J.K. House, 59 A, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

09.09.1965

Date of Appointment :

12.06.2007

DIN No.:

00020088

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	U99999MH1964PLC012865	J.K. Helene Curtis Limited	Director	26-12-89	26-12-89	-	Active	NO
2	L17117MH1925PLC001208	Raymond Limited	Managing director	01-07-09	01-04-90	-	Active	NO
3	U99999MH1947PLC005735	J.K. Investo Trade (India) Limited	Director	20-06-90	20-06-90	-	Active	NO
4	U92411MH1991GAP062033	Colosseum Sports And Recreation International	Director	05-09-91	05-09-91	-	Strike off	NO
5	U67120MH1945PLC004603	J K Investors(Bombay) Limited	Director	11-08-92	11-08-92	-	Active	NO
6	U24241MH1990PTC055034	Silver Soaps Private Limited	Director	16-10-92	16-10-92	-	Active	NO
7	U51109MH1948PLC006460	Raymond Apparel Limited	Director	30-03-93	30-03-93	-	Amalgamated	NO
8	U40100MH1997PLC106133	Aqualine Marine India Limited	Director	25-02-97	25-02-97	-	Strike off	NO
9	U25199MH1996PLC100697	J K Ansell Limited	Director	08-10-97	08-10-97	-	Active	NO
10	U72900MH2000PLC127831	Silver Spark Apparel Limited	Director	20-07-00	20-07-00	-	Active	NO
11	U51102TN1987PLC014467	Color Plus Fashions Limited	Director	21-02-03	21-02-03	-	Active	NO
12	U01100MH2004PTC150094	Avani Agricultural Farms Private Limited	Director	28-04-05	24-12-04	-	Active	NO
13	U17120MH2004PLC149276	Raymond Zambaiti Limited	Director	30-03-05	30-03-05	-	Active	NO
14	U17115MH2006PTC162450	Raymond UCO Denim Private Limited	Director	12-06-07	08-08-06	-	Active	NO
15	U85110MH2007PTC171500	Body Basic Health Care Private Limited	Director	09-06-07	09-06-07	-	Active	NO
16	U74990MH2009PTC196992	Tilottama Hospitality and Entertainment Private Limited	Director	10-11-09	10-11-09	31-03-10	Active	NO
17	U27104MH1997PLC105955	JK Files (India) Limited	Director	08-06-10	22-04-10	-	Active	NO
18	U92412MH2010PTC202465	Super Car Club of India Private Limited	Director	27-04-10	27-04-10	-	Active	NO
19	U99999MH1986PLC040885	Ring Plus Aqua Limited	Director	03-06-11	11-08-10	-	Active	NO
20	U24999MH1948NPL006309	Audit Bureau of Circulations	Director	14-12-10	14-12-10	26-09-11	Active	NO
21	U18100PN2004PLC140524	Celebrations Apparel Limited	Director	31-05-11	20-04-11	-	Active	NO
22	U18109TN2006PLC061384	Raymond Apparel Limited	Director	28-07-11	27-07-11	-	Active	NO

Name :

Mr. Pradeep Kumar Bhandari

Designation :

Director

Address :

Bunglow No.36, Neelkanth Woods Enclave B, Mullahbaug, Tikuji – Ni – Wadi, Thane (West), Maharashtra, India

Date of Birth/Age :

15.08.1957

Date of Appointment :

08.08.2006

DIN No.:

00021923

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	U67120MH1990PTC133784	Smart Investments Private Limited	Director	14-08-97	14-08-97	-	Active	NO
2	U67120MH1945PLC004603	J K Investors(Bombay) Limited	Director	22-08-97	22-08-97	-	Active	NO
3	U67120MH1984PLC032565	Tiger Travels and Tours Limited	Director	29-08-97	29-08-97	-	Active	NO
4	U17110MH1995PLC085884	Raymond Calitri Denim Limited	Director	23-10-97	23-10-97	-	Dormant	NO
5	U25199MH1996PLC100697	J K Ansell Limited	Director	04-06-98	04-06-98	-	Active	NO
6	U51109MH1948PLC006460	Raymond Apparel Limited	Director	19-06-98	19-06-98	-	Amalgamated	NO
7	U72900MH2000PLC127831	Silver Spark Apparel Limited	Director	20-07-00	20-07-00	-	Active	NO
8	U67120MH1983PLC031734	Pashmina Holdings Limited	Director	15-06-01	15-06-01	-	Active	NO
9	L67120MH1976PLC018836	People's Investment Limited	Director	27-07-01	27-07-01	-	Active	NO
10	L65990MH1974PLC017304	Polar Investments Limited	Director	27-07-01	27-07-01	-	Active	NO
11	U92110MH2002PLC136949	Radha Krshna Films Limited	Director	23-08-02	23-08-02	-	Active	NO
12	U51102TN1987PLC014467	Color Plus Fashions Limited	Director	21-02-03	21-02-03	-	Active	NO
13	L17117MH1925PLC001208	Raymond Limited	Director	23-04-08	24-04-03	-	Active	NO
14	U17120MH2004PLC149276	Raymond Zambaiti Limited	Director	30-03-05	30-03-05	-	Active	NO
15	U17115MH2006PTC162450	Raymond UCO Denim Private Limited	Director	12-06-07	08-08-06	-	Active	NO
16	U74140MH2008PTC179973	Blueocean Capital and Advisory Services Private Limited	Director	11-03-08	11-03-08	-	Active	NO
17	U24241MH1990PTC055034	Silver Soaps Private Limited	Director	09-06-09	22-04-09	-	Active	NO
18	U65999MH2009PTC197427	Gomukhi Indus Capital Advisory Private Limited	Managing director	01-04-10	30-11-09	-	Active	NO
19	U65923MH2009PTC198198	Union Kbc Trustee Company Private Limited	Director	25-05-11	03-09-10	-	Active	NO
20	L24302RJ1976PLC001684	Banswara Syntex Limited	Director	05-08-11	06-02-11	-	Active Bottom of Form	NO

Name :

Mr. Philippe Mtgmaa Vlerick

Designation :

Chairman

Address :

Ronse Vaalstaraat 2, Kortrijk, Belgium – 8310

Date of Birth/Age :

08.06.1955

Date of Appointment :

08.08.2006

DIN No.:

01558258

Name :

Mr. Alain JC Vermeersch

Designation :

Director

Address :

Lagen Heirweg – 3, Laarne, Belgium – 9270

Date of Birth/Age :

06.08.1956

Date of Appointment :

10.07.2006

DIN No.:

01559119

Name :

Mr. Yvan DP Vandamme

Designation :

Director

Address :

Polderhoeklaan – 10, Brugge, Belgium – 8310

Date of Birth/Age :

12.10.1950

Date of Appointment :

08.08.2006

DIN No.:

01559079

KEY EXECUTIVES

Name :	Mrs. Uma Ramansubramaniam
Designation :	Secretary
Address :	B/4-302, Vedani Complex, Vartak Nagar, Pokhran Road No.1, Thane, Maharashtra, India
Date of Birth/Age :	14.11.1980
Date of Appointment :	09.02.2009
PAN No.:	AJBPR6834P

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 14.07.2011

Names of Shareholders (Equity Shares)	No. of Shares
Raymond Limited, India	12157179
UCO NV Belgium, Belgium	12167179
Raymond Limited, India Jointly H Sunder	5000
Raymond Limited, India Jointly Narayanan Ramlingam	5000
Total	24334358

Names of Shareholders (Preferences Shares)	No. of Shares
Raymond Limited, India	10000000
UCO NV Belgium, Belgium	10000000
Total	20000000

Equity Share Break up (Percentage of Total Equity)

As on 14.07.2011

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	50.00
Bodies corporate	50.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Denim Fabrics and Garments.

Products :

ITC Code No.	Product Description
52094200	Denim Fabrics
62034200	Cotton Trousers (Denim)
52051110	Cotton Yarn

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Registered Capacity (*)	Installed Capacity (**)
Denim Fabric	Sq. Meters	67.20 Million	67.20 Million
Yarn	Kgs.	22.26 Million	18.80 Million
Denim Garments	Lac Nos.	#	#

(*) As per Industrial Entrepreneurs Memorandum

(**) As certified by the Management and being a technical matter, accepted by the Auditors as correct.

# In terms of the Conducting Agreement dated 8^th August, 2006, Everblue Apparel Limited at Bangalore with installed capacity of 30 lacs garments per annum exclusively manufactures Jeans garment for the Company.

Particulars	Unit	Actual Production
Denim Fabric	Lac Linear Meters	351.98
Yarn	Lac Kgs.	150.63
Denim Garments	Lac Kgs.	15.89

GENERAL INFORMATION

No. of Employees :

1800 (Approximately)

Bankers :

v Bank of India, Mumbai Large Corporate Branch, BOI Building, 4^th Floor, 70-80, M.G. Road, Fort, Mumbai – 400 001, Maharashtra, India

v HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

v State Bank of India, Corporate Accounts Group Branch, Voltas House, 23, J.N. Herida Marg, Ballard Estate, Mumbai – 400 001, Maharashtra, India

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee term loans banks	899.923	1228.223
Working capital loans banks	1175.402	1023.376
Other debt	81.263	112.039
Total	2156.588	2363.638

Unsecured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Non-convertible debentures unsecured	356.945	356.945
Rupee term loans others unsecured	294.250	294.250
Total	651.195	651.195

Banking Relations :	--
Auditors :
Name :	Dalal and Shah Chartered Accountants
Address :	252, Veer Sawarkar marg, Shivaji Park, Dadar, Mumbai – 400 028, Maharashtra, India
Tel. No.:	91-22-66691000/ 66547800/ 66547801
Fax No.:	91-22-66547801
PAN No.:	AAAFD0907D
Joint Venture Partners :	v Raymond Limited v UCO NV
Subsidiaries :	v UCO Fabrics Inc v UCO Sportswear International NV (Liquidated) v UCO Raymond Denim Holding NV
Joint Venture:	UCO Tesatura S.r.l. (Consequent to amendment made on 01.10.2010 to the shareholders agreement, the shareholding of UCO Tesatura is 50% with Uco Raymond Denim Holding NV and 50% with UCO NV)
Other Related Parties where control of Joint Venture Partners exist :	v Raymond Apparel Limited (Formerly Solitaire Fashions Limited) v Pashmina Holdings Limited v Everblue Apparel Limited v Jaykayorg AG v Raymond (Europe) Limited v Regency Texteis Portuguesa Limited v JK Files (India) Limited v Color Plus Fashions Limited v Silver Spark Apparel Limited v Celebrations Apparel Limited v Ring Plus Aqua Limited v R and A Logistics Inc. v Scissors Engineering Products Limited v J.K. Talabot Limited v J.K. Helene Curtis Limited v Raymond Woollen Outwear Limited v Rose Engineered Products India Private Limited v Rayves Automotive Textiles Company Private Limited v Raymond Zambaiti Limited v UCO Limited LLC

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions
20000000	Redeemable Preferences Shares	Rs.10/- each	Rs.200.000 Millions
	Total		Rs.450.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
24334358	Equity Shares	Rs.10/- each	Rs.243.344 Millions
20000000	Redeemable Preferences Shares	Rs.10/- each	Rs.200.000 Millions
	Total		Rs.443.344 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		443.344	412.885	412.885
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1290.015	1032.177	5416.716
4] (Accumulated Losses)		0.000	0.000	(4413.507)
NETWORTH		1733.359	1445.062	1416.094
LOAN FUNDS
1] Secured Loans		2156.588	2363.638	2623.707
2] Unsecured Loans		651.195	651.195	643.932
TOTAL BORROWING		2807.783	3014.833	3267.639
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		4541.142	4459.895	4683.733
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2435.128	2749.438	3094.116
Capital work-in-progress		32.288	23.803	7.190
INVESTMENT		285.407	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1412.373	952.931	728.671
	Sundry Debtors	862.310	727.349	901.560
	Cash & Bank Balances	77.335	207.264	229.871
	Other Current Assets	157.464	163.607	186.202
	Loans & Advances	285.251	316.258	229.598
Total Current Assets		2794.733	2367.409	2275.902
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	933.053	595.716	551.055
	Other Current Liabilities	46.684	42.113	108.330
	Provisions	26.677	42.926	34.090
Total Current Liabilities		1006.414	680.755	693.475
Net Current Assets		1788.319	1686.654	1582.427
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4541.142	4459.895	4683.733

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	5960.600	4683.021	4666.681
		Other Income	NA	38.507	48.203
		TOTAL	NA	4721.528	4714.884
Less	EXPENSES
		Material Costs	NA	1999.697	2050.015
		Manufacturing Costs	NA	1398.757	1402.387
		Increase/(Decrease) in Finished Goods	NA	21.636	(22.935)
		Employees Costs	NA	356.732	336.055
		Administrative, Selling and General Expenses	NA	404.918	464.361
		Gain / Loss on Foreign Exchange Variation	NA	(30.228)	387.702
		TOTAL	NA	4151.512	4617.585
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		NA	570.016	97.299
Less	FINANCIAL EXPENSES		NA	228.541	269.513
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		NA	341.475	(172.214)
Less/ Add	DEPRECIATION/ AMORTISATION		NA	384.190	436.891
	PROFIT BEFORE EXCEPATIONAL ITEMS		61.800	(42.715)	(609.105)
	Exceptional items		NA	72.273	3491.680
	PROFIT/ (LOSS) BEFORE TAX		NA	29.558	(4100.785)
Less	TAX		NA	0.350	(2.199)
	PROFIT/ (LOSS) AFTER TAX		NA	28.208	(4102.984)
ADD	PRIOR PERIOD ADJUSTMENTS		NA	(0.240)	(2.405)
ADD	TAX IN RESPECT OF EARLIER YEARS		NA	0.000	0.030
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(4385.539)	(4413.507)	(308.148)
	BALANCE CARRIED TO THE B/S		NA	(4385.539)	(4413.507)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	2269.189	2591.403
	TOTAL EARNINGS		NA	2269.189	2591.403
	IMPORTS
		Raw Materials	NA	427.810	668.309
		Stores & Spares	NA	189.441	195.732
		Capital Goods	NA	6.942	69.557
	TOTAL IMPORTS		NA	624.193	933.598
	Earnings/ (Loss) Per Share (Rs.)		NA	1.36	(199.64)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	0.59	(87.02)
Net Profit Margin (PBT/Sales)	(%)	NA	0.63	(87.87)
Return on Total Assets (PBT/Total Assets}	(%)	NA	0.57	(76.36)
Return on Investment (ROI) (PBT/Networth)		NA	0.02	(2.90)
Debt Equity Ratio (Total Liability/Networth)		2.20	2.55	2.80
Current Ratio (Current Asset/Current Liability)		2.78	3.47	3.28

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	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 three 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	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

FINANCIALHIGHLIGHTS

During the year the sales turnover of India operations, net of returns and discounts recorded a 28% growth to Rs.5960.600 millions including exports of Rs.2634.400 millions, from Rs.4663.000 millions including exports of Rs.2269.200 millions for the previous year ended March 31, 2010. The Company recorded a profit before tax and exceptional items of Rs.61.800 millions as against a loss of Rs.42.700 millions in the previous year ended March 31, 2010.

During the year, Rs.485.400 millions was invested in its subsidiary from the proceeds of the equity capital subscribed by both the shareholders. The subsidiary has used these funds for repaying its obligations to the European banks and consequently the corporate guarantee stands discharged. A provision of Rs.200.000 millions has been made towards diminution in the value of investment made in its subsidiary. The previous year had an exceptional gain of Rs.72.300 millions arising from write back of interest provided on loans and debentures subscribed by one of the shareholder of the Company.

OPERATIONALPERFORMANCE

FABRIC OPERATION

The Fabric division has a manufacturing facility at Yavatmal for production of differentiated varieties of denim fabric. During the reporting period the division has achieved nearly 100% capacity utilization.

The cotton and yarn prices had reached unprecedented levels during the year, but the domestic market witnessed significant improvement in price realizations which compensated for the rise in material cost. Increase in price realization is mainly attributed to their wider and better product range. The overseas market was also buoyant and efforts made in the last year to penetrate the Far East and the Scandinavian markets have borne results in this year.

GARMENTING OPERATIONS:

Garmenting division operates the Garmenting Facility of Ever blue Apparels Limited situated at Doddaballapur, near Bangalore under a Conducting agreement.

During the period it has produced 16.09 Lac pieces of jeans wear and has sold 15.86 Lac pieces including export of 7.17 Lac pieces.

Orders have been received from reputed international brands. With international and domestic brands preferring an integrated solution and a dedicated facility for their apparel requirements, there is a good potential in their garmenting operations.

SUBSIDIARIES

UCO Raymond Denim Holding NV (URDH)

UCO Raymond Denim Holding NV, which is a wholly-owned subsidiary of the Company, is the holding company for other subsidiaries in Romania and USA, whose performance have been outlined below:

UCO Tesatura SRL, Romania

UCO Tesatura SRL has a production unit in Romania. URDH has paid Euro 6 million, towards the full and final settlement of bank obligations. Subsequent to the bank settlement, a amendment was made to the shareholders agreement, with effect from October 01, 2010 wherein the shareholding of UCO Tesatura is 50% with URD Hand 50% with UCO NV. This change in the shareholding pattern will be formally concluded as per Romanian regulations before end May’11.

During the year, the Company has recorded an exceptional gain towards payments of bank obligations (RON 5.84 million) and lease settlement (RON 3.42 million). The Company has also written-off RON 6.93million of start-up cost.

The Company caters to the European market and takes advantage of being present in the low cost environment. It is expected to show better results in the coming period as the pending order position is encouraging.

UCO Fabrics, USA

UCO Fabrics Inc USA closed its operation in December 2008. Under the ‘Waiver and Partial Release’ agreement, the Company is required to sell the remaining property i.e. land and building at Rockingham, for upto USD 3 million in full and final settlement of remaining bank liabilities on this Company. To cater to the shortfall if any, the Company has deposited USD 1.5 million with the KBC bank under a escrow account. The Company has impaired the full value of escrow account.

CONTINGENT LIABILITIES:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)
Bills discounted with the Company's bankers	355.569	216.000
Bonds / Undertakings given by the Company under concessional duty / Exemption scheme to Government authorities	24.160	3.833
Disputed Excise duty liability	13.314	0.000

FIXED ASSETS:

v Leasehold Land

v Building

v Plant and Machinery

v Furniture, Fixture and Office Equipment

v Computers

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

INFORMATION DETAILS

Report Prepared by :

SMN

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	4
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--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.