MIRA INFORM REPORT

Report Date :

28.05.2012

IDENTIFICATION DETAILS

Name :	SEL MANUFACTURING COMPANY LIMITED
Registered Office :	Plot No. 274, G T Road, Dhandari Khurd, Ludhiana – 141014, Punjab
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	08.05.2000
Com. Reg. No.:	023679
Capital Investment / Paid-up Capital :	Rs.993.470 Millions
CIN No.: [Company Identification No.]	L51909PB2000PLC023679
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturing and Exporting of Cotton Yarn, Knitted Fabrics and Knitted Garments.
No. of Employees :	5500 (Approximately)

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 40000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The company is doing well. Trade relations are reported as fair. Business is active. Payments are reported to be usually 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 – 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 :	Plot No. 274, G T Road, Dhandari Khurd, Ludhiana – 141014, Punjab, India
Tel. No.:	91-161-2510270 / 6611111
Fax No.:	91-161-2510268 / 6611112
E-Mail :	ipo@rssalujagroup.co.in info@salujafabrics.com rahul@selindia.in
Website :	http://www.salujafabrics.com
Works :	Vill Lal Kalan, Near Neelon Canal Bridge, Chandigarh Road, Ludhiana, Punjab, India
Prominent Markets :	Located at : · Taiwan · Peru · Tunisia · Morocco · Brazil · Turkey · Bangladesh · Russia · China · Singapore · Malasiya · Sri Lanka · Colombia · Spain · Egypt · Switzerland · Germany · Syria · Greece · Gautemala · Hongkong · U.K. · Indonesia · Portugal · Italy · USA · Phillipines · Israel · Korea · Vietnam · Lebanon · Mauritius · Dubai · Argentina

DIRECTORS

(AS ON 31.03.2011)

Name :	Mr. Ram Saran Saluja
Designation :	Chairman
Name :	Mr. Neeraj Saluja
Designation :	Managing Director
Email :	ns@rssalujagroup.co.in
Name :	Mr. Dhiraj Saluja
Designation :	Whole-time Director
Email :	dhiraj@rssalujagroup.co.in
Name :	Mr. Vinod Kumar Goyal
Designation :	Executive Director and CEO
Name :	Mr. Navneet Gupta
Designation :	Executive Director
Email :	navneet@rssalujagroup.co.in
Name :	Mr. Sanjiv Garg
Designation :	Director
Name :	Mr. Amar Gopal Das Narang
Designation :	Director
Name :	Mr. Ashwani Kumar
Designation :	Director
Name :	Mr. Ranjan Madaan
Designation :	Additional Director
Name :	Mr. Prem Kumar
Designation :	Independent Director

KEY EXECUTIVES

Name :	Mr. Rahul Kapoor
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.03.2012)

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	27,729,044	24.90
Sub Total	27,729,044	24.90
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	27,729,044	24.90
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	697,485	0.63
Foreign Institutional Investors	100,000	0.09
Sub Total	797,485	0.72
(2) Non-Institutions
Bodies Corporate	25,241,142	22.67
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	38,337,789	34.43
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	14,932,923	13.41
Any Others (Specify)	4,308,617	3.87
Non Resident Indians	1,494,565	1.34
Clearing Members	247,936	0.22
Hindu Undivided Families	2,558,016	2.30
Trusts	8,100	0.01
Sub Total	82,820,471	74.38
Total Public shareholding (B)	83,617,956	75.10
Total (A)+(B)	111,347,000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	111,347,000	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Exporting of Cotton Yarn, Knitted Fabrics and Knitted Garments.

Products :

Products Description	Item Code No.
Hosiery Garments	5205.11
Knitted Cloth	5509.53
Cotton Yarn	5509.21
Terry Towel	6304.92

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Hosiery Garments	Pcs.	NA	8500000	3466914
Knitted Cloth	Kgs	NA	7050000	1767372
Cotton/ Polyster Yarn	Kgs	NA	1149856 2400	31468027
Terry Towel	MT	NA	12600	4854

(Installed Capacities have been certified by the management and not verified by the Auditors being technical matter.)

(Installed Capacities per annum on the assumption of 300 working days in year except in the case cotton yarn where it is on the basis of 360 working days. The capacities in Garments and Dyed Knitted Cloth may vary depending on the quality of the final product desired.)

(In case of Cotton/Polyster Yarn, installed capacities are in the terms of spindles & rotors installed)

GENERAL INFORMATION

No. of Employees :

5500 (Approximately)

Bankers :

State Bank of Bikaner and Jaipur

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Loans and Advance From Banks
- Term Loans	11577.479	6319.519
- Working Capital	4710.636	2873.947
Total	16288.115	9193.466
NOTE: 1. The term loans from Banks are secured by equitable mortgage of entire Land and Building of the Company and further secured by all the Fixed Assets of the Company, immovable and movable, both present and future ranking parri passu basis and personally guaranteed by the promoter directors. 2. Working Capital Loans are secured by the Hypothecation of Stock-in-trade, Book Debts and Receivables of the Company and further secured by the second parri-passu charge with all term lenders on the entire fixed assets of the Company and guarantee of promoter directors. 3. Term Loan due for repayment within one year is Rs.1360.700 Millions
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Banks	48.555	223.740
Total	48.555	223.740
NOTE: Amount due for repayment within one year is rupees 19.100 Millions

Banking Relations :	--
Auditors :
Name :	Dass Khanna and Company Chartered Accountants
Address :	B-XX-2815, Gurdev Nagar, Pakhowal Road, Ludhiana – 141001, Punjab, India
Subsidiaries :	· SEL Textiles Limited
Associates :	· Rythm Textiles and Apparels Park Limited · Silverline Corporation Limited
Enterprises over which key management personal and relatives of such personal is able to exercise significant influence :	· Shiv Narayan Investments Private Limited · Saluja International · Saluja Fabrics · SEL Aviation Private Limited · SEL Developers Private Limited · Omega Hotels Limited

CAPITAL STRUCTURE

(AS ON 05.07.2011)

Authorised Capital : Rs.4000.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.1113.470 Millions

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
250000000	Equity Share	Rs.10/- each	Rs.2500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
99347000	Equity Share	Rs.10/- each	Rs.993.470 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		993.470	303.570	171.700
2] Share Application Money		0.000	0.000	0.000
3] Share Warrant		0.000	15.750	105.500
4] Reserves & Surplus		8980.303	4676.249	2984.800
5] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		9973.773	4995.569	3262.000
LOAN FUNDS
1] Secured Loans		16288.115	9193.466	6009.900
2] Unsecured Loans		48.555	223.740	227.200
TOTAL BORROWING		16336.670	9417.206	6237.100
DEFERRED TAX LIABILITIES		614.468	324.482	225.700
TOTAL		26924.911	14737.257	9724.800
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8754.032	4678.089	3063.000
Capital work-in-progress		5971.660	2473.314	1501.500
INVESTMENT		2142.300	1589.069	1030.400
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5498.736	2118.992	1133.300
	Sundry Debtors	4389.165	3051.246	2166.400
	Cash & Bank Balances	955.663	564.569	1088.200
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1380.300	780.735	687.200
Total Current Assets		12223.864	6515.542	5075.100
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	1400.937	189.953	880.400
	Other Current Liabilities	468.267	169.347
	Provisions	298.125	160.225	65.900
Total Current Liabilities		2167.329	519.525	946.300
Net Current Assets		10056.535	5996.017	4128.800
MISCELLANEOUS EXPENSES		0.384	0.768	1.100
TOTAL		26924.911	14737.257	9724.800

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	15832.155	9422.162	5897.100
		Other Income	245.439	394.978	417.100
		TOTAL (A)	16077.594	9817.140	6314.200
Less	EXPENSES
		Cost of Materials	11622.236	6846.277
		Manufacturing Expenses	813.836	631.333
		Personnel Expenses	379.394	197.731	5080.500
		Administrative Expenses	123.584	105.582
		Selling Expenses	325.147	204.029
		Preliminary expenses	0.383	0.383
		TOTAL (B)	13264.580	7985.335	5080.500
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2813.014	1831.805	1233.700
Less	FINANCIAL EXPENSES (D)		763.109	593.603	377.700
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2049.905	1238.202	856.000
Less/ Add	DEPRECIATION/ AMORTISATION (F)		557.489	314.313	174.900
	PROFIT BEFORE TAX (E-F) (G)		1492.416	923.889	681.100
Less	TAX (H)		488.502	255.037	132.300
	PROFIT AFTER TAX (G-H) (I)		1003.914	668.852	548.800
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2328.576	1959.585	1496.700
	Tax Adjustment Relating to Previous Year		7.862	(49.861)	74.000
Less	APPROPRIATIONS
		Transfer to General Reserve	250.000	250.000	160.000
	BALANCE CARRIED TO THE B/S		3090.352	2328.576	1959.500
	EARNINGS IN FOREIGN CURRENCY		3185.085	2598.162	1863.724
	IMPORTS VALUE		2219.159	1023.089	445.408
	Earnings Per Share (Rs.)		12.73	32.08	--

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	4609.680	4957.230	3336.140
Total Expenditure	3956.500	4240.620	2641.590
PBIDT (Excl OI)	653.180	716.610	694.550
Other Income	94.720	173.280	220.440
Operating Profit	747.900	889.890	914.990
Interest	353.670	326.470	448.640
Exceptional Items	(127.560)	40.210	0.000
PBDT	266.670	603.630	466.350
Depreciation	175.790	215.380	173.020
Profit Before Tax	90.880	388.250	293.330
Tax	24.000	125.060	98.160
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	66.880	263.190	195.180
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	66.880	263.190	195.180

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.24	6.81	8.69
Net Profit Margin (PBT/Sales)	(%)	9.43	9.81	11.55
Return on Total Assets (PBT/Total Assets}	(%)	7.11	77.40	8.37
Return on Investment (ROI) (PBT/Networth)		0.15	0.18	0.21
Debt Equity Ratio (Total Liability/Networth)		1.86	1.99	2.20
Current Ratio (Current Asset/Current Liability)		5.64	12.54	5.36

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	No
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	No
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	--
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	No

BUSINESS

The Company is vertically integrated multi-product textile company, manufacturing and exporting various kinds of Knitted Garments, Terry Towels, Knitted and Processed Fabric and various kinds of Yarn with production facilities located at Ludhiana and Nawansheher in Punjab and Baddi in Himachal Pradesh and upcoming unit in the state of Madhya Pradesh.

THE BUSINESS STRATEGY

The principal operating strategies are to:

· Foray into value added yarns like slub fancy yarn, Dyed yarns, Bamboo cotton, Organic cotton, Millanges etc.

· Expand the garment capacity to cater to more diverse export markets.

· To become an integrated player in the textile market catering in all segments from carded and combed yarn, knitting fabrics, knitted garments and terry towels.

· Reduction of operational costs.

· Invest in design and product development for setting new trends and lifestyles.

· Develop and maintain strong relationship with the clients.

They are expanding their existing capacities in yarn manufacturing and terry towels. Further, they have also set up captive Power Plant with a capacity of 22MW. The terry towel manufacturing capacities are proposed to be increased upto 25200 TPA post expansion.

The implementation work of the new Spinning Project in the state of Madhya Pradesh is on full swing which consists of the capacity of 3,26,400 spindles. Further Vertex Spinning facility with capacity of 2400 spindles and Open end Spinning with capacity of 2040 Rotors is also proposed to be set up. Further expansion of open end Spinning consisting of 4800 rotors is also proposed which would take the total open end spinning capacity (post expansion) to 9240 rotors.

OPERATIONS

The company has achieved Gross Sales to the tune of Rs.15832.791 Millions as compared to Rs.9422.162 Millions in the previous year. The profit before tax stood at Rs.1492.416 Millions as compared to Rs.923.889 Millions during the previous year. After providing for taxes and other adjustments, the Profit after tax stood at Rs.1003.914 Millions as compared to Rs.668.852 Millions during the previous year.

SUBSIDIARY FIRM(S)

The company has one Subsidiary Company namely SEL Textiles Limited and two subsidiary firm(s) namely M/s SE Exports and M/s Kudu Industries. The Company has its branch office at Dubai, United Arab Emirates.

The annual accounts of the subsidiary companies/firms and the related detailed information shall be made available to shareholders of the holding and subsidiary companies seeking such information at any point of time.

Further the annual accounts of the subsidiary companies are kept for inspection by any shareholders in the head office i.e. the Registered Office of the holding company and of the subsidiary companies concerned.

The company continues to hold 99% stake each in the partnership firm(s) namely M/s SE Exports and M/s Kudu Industries. M/s SE Exports, the firm is engaged in the business of manufacture of value added knitted garments having production facilities located in the tax free zone in Baddi in Himachal Pradesh and M/s Kudu Industries is located at Ludhiana.

The Company holds 99.75% stake in SEL Textiles Limited. SEL Textiles Limited is engaged in the business of textiles and the Company has two spinning unit(s) one at Neemrana (Rajasthan) and one at Hansi, Hissar (Haryana).

Further the capacities of both of the aforesaid units is being expanded as under:

· Addition of 34560 Spindles at the Unit located at Neemrana (Rajasthan). It is also proposed to add open end spinning capacity of 1440 rotors there.

· Addition of 26400 spindles at the Unit located at Hansi (Haryana)

Further a new Spinning unit is being installed under the subsidiary i.e. SEL Textiles Limited. In the State of Punjab with the capacity of about 1,88,000 Spindles.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

Industry Structure and Development

India has been able to face the global economic downturn better than most other countries in spite of the inadequate and uneven monsoon and resultant slowdown in agriculture. Growth is expected to be better as there are clear signs of an upturn in the economy and with the forecast of a normal monsoon in the current year, the prospects for the economy will be brighter. India's textile industry has a pervasive effect on its economic life. The Indian textile industry uses a large and diverse range of fibres and yarn, however, cotton is its major input material. Therefore, cotton availability and prices are a major determinant of production efficiency and profitability of textile units.

Though the global economy seem to be coming out of the crisis, recovery may be unsteady for a while. The Continuous improvement and investment in weaving and processing will help to meet the demand of quality textiles, which will give an edge to the Indian textile industry over competitors. Upgrading technology and infrastructure is an ongoing process and, with the added support of Government bodies it should boost the Indian textile further.

The Company is vertically integrated textile Company, manufacturing and exporting various kinds of yarns, knitted fabrics, readymade garments and terry towels etc. with production facilities located in Ludhiana and Nawan Shehar in Punjab, Baddi in Himachal Pradesh and upcoming Unit in the State of Madhya Pradesh.

COMPANY'S PERFORMANCE

The company has achieved Gross Sales to the tune of Rs.15832.791 Millions as compared to Rs.9422.162 Millions in the previous year registering a growth of 68.04% on year on year basis. The profit before tax stood at Rs.1492.416 Millions as compared to Rs.923.889 Millions during the previous year, a growth of 61.54% on year on year basis. After providing for taxes and other adjustments, the Profit after tax stood at Rs.1003.914 Millions as compared to Rs.668.852 Millions during the previous year, a growth of 50.09% on year on year basis.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS PERIOD ENDED 31.12.2011

						Rs in Millions
	Particulars			Quarter ended	Quarter ended	Year to date
				31.12.2011	30.09.2011	31.12.2011
				(Unaudited)	(Unaudited)	(Unaudited)
1	(a) Net Sales/Income from Operations			3336.140	4957.231	12903.050
	(b)Other Operating Income			--	--	--
2	Expenditure
	(a)		Increase/(Decrease) in Stock-in-trade and work in progress	--	--	--
	(b)		Consumption of raw materials	1935.973	3745.157	9198.994
	©		Purchase of traded Goods	--	--	--
	(d)		Employees Cost	163.128	110.706	413.186
	(e)		Depreciation	173.017	215.379	564.188
	(f )		Other Expenditure	542.485	384.751	1313.871
	(g)		Total (Any item exceeding 10% of the total Expenditure to be shown separately)	2814.603	4455.993	11490.239
3			Profit from operation before other income, interest and other exceptional items(1-2)	521.537	501.238	1412.811
4			Other Income	220.436	173.277	488.432
5			profit before interest and exceptional items(3+4)	741.973	674.515	1901.243
6	Interest			448.639	326.474	1128.780
7	Profit after interest but before exceptional items(5-6)			293.334	348.041	772.463
8	Exceptional Items			-	(40.208)	--
9	Profit(+)/Loss(-) from Ordinary Activities before tax (7-8)			293.334	388.249	772.463
10	Tax Expenses			98.159	125.058	247.220
11	Net Profit(+)/Loss(-) from Ordinary Activities after tax( 9-10)			195.175	263.191	525.243
12	Extra Ordinary Items			--	--	--
13	Net Profit(+)/Loss(-) for the period (1112)			195.175	263.191	525.246
-14	Paid-up Equity Share Capital Rs.2/ per share			993.470	993.470	993.470
15	Reserves excluding revaluation reserves			--	--	--
16		Earning Per Share
(a)		Basic and diluted EPS before Extraordinary items for the period, for the year to date and for the previous year(not to be annualised)		B-1.196 D-1.96	B-2.65 D-2.65	B-5.29 D-5.29
(b)		Basic and diluted EPS after Extraordinary items for the period, for the year to date and for the previous year(not to be annualised)		B-1.196 D-1.96	B-2.65 D-2.65	B-5.29 D-5.29
17		Public Shareholding
		Number of Shares		83617956	83617956	83617956
		Percentage of Shareholding		84.17%	84.17%	84.17%
18		Promoters and Promoter group
		a) Pledged/Encumbered		0.000
		Number of shares		15729044	15729044	15729044
		Percentage of Shares (as a % of the total shareholding of promoter and promoter group)		100%	100%	100%
		Percentage of Shares (as a % of the total share capital of the Company)		15.83%	15.83%	15.83%

Notes:

1. The above results are reviewed by the Audit Committee and taken on record at the meeting of the Board of Directors on 14.02.2012.

2. The Status of Investor Complaints received during the quarter is as follows:- Pending as on Oct 1, 2011 -Nil, Received during the quarter 2, Disposed during the quarter 2, Pending as on December 31, 2011 –Nil

3. Consolidation has been made by applying Accounting Standard-21 "Consolidated Financial Statements" issued by the Institute of Chartered Accountants of India.

4. The Consolidated Financial results include results of 99% owned subsidiaries namely M/s SE Exports and M/s Kudu Industries and wholly owned subsidiary named M/s SEL Textiles Limited and 98.65% in M/s Silverline Corporation Limited.

5. The effect of foreign currency transactions would be taken as on the date of realisation.

6. The Company is functioning in only one segment i.e."Textiles" hence Segment Reporting required under AS-17 is not applicable.

7. Previous period's figures have been re-grouped and re-classified wherever necessary.

FIXED ASSETS:

· Freehold Land

· Leasehold Land

· Building

· Road

· Plant and Machinery

· Furniture and Fixture

· Vehicles

· Office Equipment

AS PER WEBSITE DETAILS

COMPANY PROFILE

SEL GROUP, under the mentorship of The Chairman Mr. R.S. Saluja, has nurtured a dynamic business landscape. 

Mr. Neeraj Saluja, Managing Director and Mr. Dhiraj Saluja, Whole Time Director have carried forward and added to the legacy of The Chairman, with their formidable leadership. With their discerning vision and clairvoyance, they are steering the group through the most significant and arduous phase in its history. 

The GROUP has announced a capex of USD 400 millions to set up an integrated state of the art yarn manufacturing facility with 400000 spindles. This will be the largest yarn manufacturing facility in a single location. Work for the same has already started in Mahetwara, near Bhopal, Madhya Pradesh, with the potential of providing direct employment to 4000 and indirect employment to 20,000 people. 

The GROUP, headquarters, at Ludhiana, Punjab, North India, started its journey in 1969 with manufacturing in Ready Made garments. It has been a momentous journey for the GROUP. From a couple of million USD to being a USD 300 million integrated textile group with a targeted capacity of 1 million spindles, the goodwill earned by the GROUP is indeed palmary. 

The top management consists of The Chairman Mr. R.S. Saluja, Managing Director Mr. Neeraj Saluja, Whole Time Director Mr. Dhiraj Saluja, Executive Director and CEO Mr. V.K. Goyal and Executive Director and CFO Mr. Navneet Gupta. 

The top management through its functions provides strong leadership; visible and active support; and demonstrated commitment which is fundamental to the success of the business. It creates and articulates a vision of what the organization could achieve in the long run. It move the organization in new directions and empowers people at all levels to utilize their full potential to achieve the objectives. It stresses relationships with peers, values and commitment – the emotional and spiritual aspects of the organization.

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.55.72
UK Pound	1	Rs.87.26
Euro	1	Rs.69.89

INFORMATION DETAILS

Report Prepared by :

KVT

SCORE & RATING EXPLANATIONS

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