MIRA INFORM REPORT

Report Date :

07.11.2012

IDENTIFICATION DETAILS

Name :	LOYAL TEXTILE MILLS LIMITED
Registered Office :	21/4, Mill Street, Kovilpatti-628501, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	09.04.1946
Com. Reg. No.:	18-001361
Capital Investment / Paid-up Capital :	Rs.48.164 Millions
CIN No.: [Company Identification No.]	L17111TN1946PLC001361
TAN No.: [Tax Deduction & Collection Account No.]	MRIL00006G
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Cotton Textile Mills, Readymade Garments, Finished Fabrics, Grey Fabrics, and Yarn.
No. of Employees :	4271 (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 4350000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having good track record. There appears loss in the current year recorded by the company. However, networth of the company seems to be strong. Trade relations are reported to be fair. Business is active. Payment are reported to be regular and as per commitment The company can be considered for normal business dealing at usual trade terms and condition

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	BBB- (Long Term Bank Facilities)
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation it carry moderate credit risk
Date	April 2012

Rating Agency Name	CARE
Rating	A3 (Short Term Bank Facilities)
Rating Explanation	Moderate degree of safety regarding timely payment of financial obligation it carry higher credit risk
Date	April 2012

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ 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 / Factory :	21/4, Mill Street, Kovilpatti-628501, Tamilnadu, India
Tel. No.:	91-4632-220001 / 28535111 / 4375 / 28588284
Fax No.:	91-44-2853 3852
E-Mail :	loyal@giasmd01.vsnl.net.in loyal@vsnl.com secretarial@loyaltextile.com loyal@loyaltextiles.com kpl@loyaltextiles.com investors@loyaltextiles.com
Website :	http://www.loyaltextiles.com
Plant locations :	Spinning, Knitting, Weaving and Garments · N. Venkateswarapuram, N.Subbiahpuram, Sattur Taluk - 626 205. · Menakur Village, Naidupet Mandal, Nellore District, Andhra Pradesh - 524 221. · Arasanur, Thirumancholai Post, Sivagangai Taluk -630 561. Processing : · C7-1, SIPCOT Industrial Complex, Kudikadu, Cuddalore - 607 005.

DIRECTORS

As on 11.05.2012

Name :

Mr. Manikam Ramaswami

Designation :

Chairman and Managing Director

Address :

Satyanarayana Avenue, Boat Club Road, Chennai - 600 028, Tamilnadu, India

Date of Birth/Age :

20.11.1953

Qualification :

B. Tech.

Date of Appointment :

01.06.2008

DIN No.:

00049630

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	L17111TN1946PLC001361	LOYAL TEXTILE MILLS LIMITED	Managing director	01/06/2008	01/06/1979	-	Active	NO
2	U17120MH1967PLC013669	CONFEDERATION OF INDIAN TEXTILE INDUSTRY	Director	21/08/1988	21/08/1988	-	Active	NO
3	U52321TN1995PTC031290	HELLEN COTTON TRADING COMPANY PRIVATE LIMITED	Director	03/06/1997	03/06/1997	-	Active	NO
4	U52321TN1995PTC031289	NIKE COTTON TRADERS PRIVATE LIMITED	Director	03/06/1997	03/06/1997	31/03/2010	Active	NO
5	U52599TN1995PTC031295	RHEA COTTON TRADERS PRIVATE LIMITED	Director	03/06/1997	03/06/1997	-	Active	NO
6	U52599TN1995PTC031292	NEMESIS COTTON TRADING COMPANY PRIVATE LIMITED	Director	03/06/1997	03/06/1997	-	Active	NO
7	U91110MH1954NPL009385	THE COTTON TEXTILES EXPORT PROMOTION COUNCIL	Director	30/09/2002	30/09/2002	-	Active	NO
8	U01712TZ2005PLC012329	SIMA TEXTILE PROCESSING CENTRE LIMITED	Director	07/12/2005	07/12/2005	-	Active	NO
9	U93090TN1983SGC010512	TAMILNADU CORPORATION FOR DEVELOPMENT OF WOMEN LIMITED	Director	22/09/2008	22/09/2008	14/07/2009	Active	NO

Name :

Mr. Karangalpadi Jathindra Mohan Shetty (I.A.S. – Retd.)

Designation :

Director

Address :

F-88, Anna Nagar East, Chennai-600102, Tamil Nadu, India

Date of Birth/Age :

03.03.1934

Date of Appointment :

21.06.2002

DIN No.:

00033296

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	U36999TZ1992PLC003662	ROOTS MULTI CLEAN LIMITED	Director	16/07/1993	16/07/1993	28/03/2010	Active	NO
2	U72200TN2001PTC046986	SAVANT INDIA INSTITUTE OF TECHNOLOGY PRIVATE LIMITED	Director	18/04/2001	18/04/2001	-	Active	NO
3	L36991TN1990PLC019944	JUMBO BAG LIMITED	Director	28/05/2002	28/05/2002	-	Active	NO
4	L17111TN1946PLC001361	LOYAL TEXTILE MILLS LIMITED	Director	21/06/2002	21/06/2002	-	Active	NO
5	L74899MH1994PLC164024	GATEWAY DISTRIPARKS LIMITED	Director	16/06/2004	16/06/2004	-	Active	NO
6	U35111TN1994PTC087210	GATEWAY DISTRIPARKS (SOUTH) PRIVATE LIMITED	Director	30/11/2004	30/11/2004	-	Active	NO
7	L72200TN1978PLC058225	SAVANT INFOCOMM LIMITED	Director	29/11/2005	29/11/2005	15/10/2007	Active	NO
8	U72200TN2006PTC060355	OPUS IT SERVICES INDIA PRIVATE LIMITED	Director	11/07/2006	11/07/2006	15/12/2007	Active	NO
9	U17111TN1982PLC009317	SHRI CHINTAMANI TEXTILE MILLS LIMITED	Director	29/09/2009	02/11/2008	16/08/2010	Amalgamated	NO
10	U74140TN2000PTC045736	VKS SOLUTIONS PRIVATE LIMITED	Director	19/07/2011	19/07/2011	-	Active	NO
11	U26914KA1994PTC016130	ENDEKA CERAMICS INDIA PRIVATE LIMITED	Director	28/09/2011	22/07/2011	-	Active	NO

Name :

Mr. S. Venkataramani

Designation :

Director

Address :

No.16, Venkateshwarnagar, III Street, Adyar, Chennai-600020, Tamil Nadu, India

Date of Birth/Age :

05.10.1942

Date of Appointment :

29.10.2004

DIN No.:

00053043

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	U63040TN1950PTC000221	BHARAT TRAVEL SERVICE PRIVATE LIMITED	Director	02/09/2004	02/09/2004	-	Active	NO
2	L17111TN1946PLC001361	LOYAL TEXTILE MILLS LIMITED	Director	29/10/2004	29/10/2004	-	Active	NO
3	L99999MH1962PLC012549	TULIVE DEVELOPERS LIMITED	Director	25/04/2005	25/04/2005	-	Active	NO
4	L93090TN1979PLC032618	MARIS SPINNERS LIMITED	Director	14/11/2005	14/11/2005	-	Active	NO
5	U01111TZ1973PTC000662	NILGIRI AGRO AGENCIES PRIVATE LIMITED	Director	17/12/2005	17/12/2005	-	Active	NO
6	U45201TN1995PTC029899	MARIS ENTERPRISES PRIVATE LIMITED	Director	01/12/2006	01/12/2006	-	Active	NO
7	U51909TN1961PTC044552	JANATHA TRADERS INDIA PRIVATE LIMITED	Director	01/12/2006	01/12/2006	-	Active	NO
8	U17111TN1982PLC009317	SHRI CHINTAMANI TEXTILE MILLS LIMITED	Director	29/09/2009	02/11/2008	16/08/2010	Amalgamated	NO

Name :

Mr. R. Poornalinggam (I.A.S. – Retd.)

Designation :

Additional Director

Address :

No.10, 1^st Cross Street, Indira Nagar, Chnnai-600020, Tamil Nadu, India

Date of Birth/Age :

15.11.1945

Date of Appointment :

27.10.2006

DIN No.:

00955742

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	U74899DL2005PTC142561	C-DOT ALCATEL-LUCENT RESEARCH CENTRE PRIVATE LIMITED	Director	04/07/2006	04/07/2006	16/09/2009	Active	NO
2	L17111TN1946PLC001361	LOYAL TEXTILE MILLS LIMITED	Additional director	27/10/2006	27/10/2006	-	Active	NO
3	U74999TN1997PLC039523	TIDEL PARK LIMITED	Director	09/12/2006	09/12/2006	23/06/2011	Active	NO
4	U40109TN2006PTC085606	REGEN POWERTECH PRIVATE LIMITED	Nominee director	24/10/2007	24/10/2007	16/03/2009	Active	NO
5	U70101AP2001PTC038151	NSL SEZ (CHENNAI) PRIVATE LIMITED	Managing director	01/01/2008	01/01/2008	30/06/2008	Active	NO
6	U45200AP2005PTC045511	NSL NAGAPATNAM POWER AND INFRATECH PRIVATE LIMITED	Additional director	25/04/2008	25/04/2008	04/03/2009	Active	NO
7	U15429AP2002PLC038489	NSL TEXTILES LIMITED	Director	19/07/2008	22/06/2008	04/03/2009	Active	NO
8	L74999TZ1984PLC001456	TITAN INDUSTRIES LIMITED	Director	27/07/2009	30/03/2009	31/07/2012	Active	NO
9	U45209TN1998PLC040572	TAMIL NADU ROAD DEVELOPMENT COMPANY LIMITED	Director	16/09/2010	15/12/2009	10/06/2011	Active	NO
10	U74899DL1968PLC004866	NATIONAL TEXTILE CORPN LIMITED	Director	18/06/2010	18/06/2010	-	Active	NO
11	U40100TN2008PTC069515	NAGAPATTINAM ENERGY PRIVATE LIMITED	Director	23/06/2011	11/01/2011	-	Active	NO
12	U10101TN2007PTC070594	TRIDEM PORT AND POWER COMPANY PRIVATE LIMITED	Director appointed in casual vacancy	08/08/2012	08/08/2012	-	Active	NO

Name :

Mr. Shridhar Subramanyam

Designation :

Director

Address :

Flat No.106, Olympus III, Prestige Acropolis, 20, Hosur Road, Banglore-560029, Karnataka, India

Date of Birth/Age :

21.02.1939

Date of Appointment :

23.05.2007

DIN No.:

01780475

Name :

Mr. P. Manivannan

Designation :

Whole-time Director

Address :

3 G, Kala Apartments, No.02, Karunanithi Street, West Mambalam, Chennai-600033, Tamil Nadu, India

Date of Birth/Age :

23.06.1961

Date of Appointment :

01.11.2011

DIN No.:

00366954

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	U17111TN1992PLC023836	SHRI TEYEM PROCESSORS LIMITED	Director	29/06/2000	29/06/2000	31/10/2008	Active	NO
2	U18101TN1993PTC024516	VISHALA APPARELS PRIVATE LIMITED	Director	29/06/2000	29/06/2000	31/10/2008	Active	NO
3	U17111TN1982PLC009317	SHRI CHINTAMANI TEXTILE MILLS LIMITED	Director	12/07/2000	12/07/2000	-	Amalgamated	NO
4	L17111TN1946PLC001361	LOYAL TEXTILE MILLS LIMITED	Whole-time director	01/11/2011	01/11/2008	-	Active	NO

Name :

Mr. Madhavan Nambiar I.A.S. (Retd.)

Designation :

Director

KEY EXECUTIVES

Name :	Mr. Shiva Prasad Padhy
Designation :	Company Secretary
Address :	No. 83, (Old No. 41) First Main Road, R A Puram, Chennai – 600 028, Tamilnadu, India
Tel No.:	91-44-42277374
Fax No.:	91-44-43060622

SHAREHOLDING PATTERN

As on 30.09.2012

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	196017	4.07
Bodies Corporate	3343828	69.43
Sub Total	3539845	73.49
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	3539845	73.49
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	5200	0.11
Sub Total	5200	0.11
(2) Non-Institutions
Bodies Corporate	184247	3.83
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	783814	16.27
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	266249	5.53
Any Others (Specify)	37091	0.77
Non Resident Indians	37091	0.77
Sub Total	1271401	26.40
Total Public shareholding (B)	1276601	26.51
Total (A)+(B)	4816446	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	4816446	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cotton Textile Mills, Readymade Garments, Finished Fabrics, Grey Fabrics, and Yarn.

Products :

ITEM CODE NO. (ITC CODE)	PRODUCT DESCRIPTION
5202, 5203, 5204, 5205, 5206, 5207, 5208, 5209 5210, 5211, 5212, 5301, 5306, 5308, 5309, 5311, 5503, 5504, 5505, 5506, 5507, 5509 5510, 5511, 5512, 5513, 5514, 6001 6203, 6204	Textiles falling within Code Nos.

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Installed Capacity
Ring Spindles	Nos.	154973
Rotors	Nos.	4080
Automatic Looms	Nos.	250
Cloth Processing	Mtrs.	14400000
Hosiery Processing	Kgs.	6400000
Sewing Machines	Nos.	850
Knitting Machines	Nos.	126

ACTUAL PRODUCTION:

Particulars	Unit	Actual Production
Yarn (4485440 Kgs. manufactured by outsiders) (previous year 4221839.41 kgs.) of which 10350.80 kgs. were processed (previous year 11317.10 kgs.)	Kgs.	22514
Cloth net of shrinkage (566415 metree manufactured by outsiders) (previous year 2184279.00 mtrs) of which 3483773.80 mtrs. were processed. (previous year 3371446.70 mtrs.)	Mtrs.	28815
Hosiery cloth (including produced by others) of which 769918.28 kgs. were processed (Previous year 567567.25 kgs.)	Kgs.	12009

GENERAL INFORMATION

No. of Employees :

4271 (Approximately)

Bankers :

· Export Import Bank of India

· Central Bank of India

· State Bank of India

· Karur Vysya Bank Limited

· Indian Bank

· State Bank of Mysore

· Indian Overseas Bank

Facilities :

Secured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
(A) TERM LOANS : SECURED Term Loan from Banks (B) TERM LOANS FROM FINANCIAL INSTITUTION Term loans except the following are secured by joint and equitable mortgage of all immovable properties present and future and by hypothecation of machineries ranking paripassu with one another. Term loans availed from Central bank of India and Karur Vysya Bank to the extend of Rupees 1158.900 millions are exclusively charged by the specific assets purchased out of the term loan Term loans availed from Indian Overseas Bank to the extend Rupees of 127.800 Millions is exclusively charged on Land, building and Plant and machinery purchased under their Term Loans The term loan repayable half yearly / quarterly as per agreement at floating rate of interests. Term loans payable with in a period of 12 months Rs. 623.800 millions. (Previous Year Rs.439.100 millions) LOANS REPAYABLE ON DEMAND - FROM BANKS Working Capital Loans from Banks are Secured by the hypothecation of Raw materials, stock in process, Finished goods, Stores Consumables, Spares and Book debts. and are also secured by second charge on block assets (Secured against hypothecation of stocks) Working Capital Loans are guaranteed by the Chairman and Managing director	3720.900 519.800 2399.300	3311.500 341.300 2616.800
Total	6640.000	6269.600
Unsecured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
Fixed Deposits	2.200	2.800
Total	2.200	2.800

Banking Relations :	--
Auditors :
Name :	Suri and Company Chartered Accountants
Address :	Chennai, Tamilnadu, India
Name :	Mr. V. Balasubramanian Cost Auditor
Associates/Subsidiaries :	· Shri Teyem Processors Limited N. Venkateswarapuram · Uniloyal Expotex Limited Chennai · Gruppo P&P Loyal Spa, Italy · Loyal Dimco Group A.E.B.E., Greece

CAPITAL STRUCTURE

As on 30.03.2011

Authorized Capital:

No. of Shares	Type	Value	Amount
9000000	Equity Shares	Rs. 10/- each	Rs. 90.000 millions
600000	Redeemable Cumulative Preference Shares	Rs. 100/- each	Rs. 60.000 millions
	TOTAL		Rs. 150.000 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
4816446	Equity Shares	Rs. 10/- each	Rs. 48.200 millions

NOTES:

RECONCILIATION OF NUMBER OF EQUITY SHARES OUTSTANDING AT THE BEGINNING AND AT THE END OF THE YEAR

Number of Shares outstanding as the beginning of the year 47,03,946

ADD:

Number of Shares allotted during the year fully paid - up pursuant

to a scheme of Amalgamation with "Sri Chintamani Textiles Mills Ltd., 1,12,500

Number of Shares outstanding as the end of the year 48,16,446

RIGHTS, PREFERENCES AND RESTRICTIONS ATTACHING TO VARIOUS CLASSES OF SHARES.

Sr. No. Class of Shares Rights, preference and restrictions

(Including restrictions on distribution

of dividend and repaymeny of

Capital) attached to the class of

shares

1. Equity shares issued pursuant to amalgamation Lock in period upto 18/10/2014

SHARES IN THE COMPANY HELD BY EACH SHARE HOLDING MORE THAN 5% SHARES

Sr. No. Name of the Share holder Number of shares held in the Company

1. Madurai Tara Traders Private Ltd 776887

2. Felspar credit and investment Private Limited 661126

3. Dhanalakshmi Investment Private Limited 629343

4. Kurunji Investments Private Limited 346887

5. Chintamani Investments Private Limited 279220

DETAILS OF ALLOTMENT OF SHARES FOR CONSIDERATION OTHER THAN CASH, ALLOTMENTS OF BONUS SHARES AND SHARES BOUGHT BACK (DURING THE PERIOD OF FIVE YEARS FROM 2007)

Particulars Amount

1. Allotment of shares as fully paid-up pursuant to

Contracts without payments being received in cash 11

1,12,500 Equity Shares of Rs. 10 each fully paid up alloted on 27-05-2011 pursuant to a Scheme of Amalgamation of "Shri Chintamani Textile Mills Limited"

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		48.200	48.200	47.040
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1040.600	1065.600	789.170
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1088.800	1113.800	836.210
LOAN FUNDS
1] Secured Loans		6640.000	6269.600	3574.949
2] Unsecured Loans		2.200	2.800	2.711
TOTAL BORROWING		6642.200	6272.400	3577.660
DEFERRED TAX LIABILITIES		293.700	318.200	231.160
TOTAL		8024.700	7704.400	4645.030
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4822.200	3827.300	2650.079
Capital work-in-progress		410.300	388.800	12.794
INVESTMENT		62.500	35.800	18.019
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1351.000	2305.600	1110.203
	Sundry Debtors	821.900	752.300	671.415
	Cash & Bank Balances	328.000	188.300	30.950
	Other Current Assets	1297.500	1406.700	96.023
	Loans & Advances	123.100	290.600	534.923
Total Current Assets		3921.500	4943.500	2443.514
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	401.900	684.700	449.416
	Other Current Liabilities	494.500	468.300	4.686
	Provisions	295.400	338.000	25.274
Total Current Liabilities		1191.800	1491.000	479.376
Net Current Assets		2729.700	3452.500	1964.138
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		8024.700	7704.400	4645.030

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	9105.900	9624.500	4440.834
		Other Income	108.100	147.200	194.326
		TOTAL (A)	9214.000	9771.700	4635.160
Less	EXPENSES
		Cost of Material consumed	3990.800	4398.100
		Purchase of stock in trade	1653.400	2365.400
		Changes in inventories of Finished Goods work in progress and stock in trade	281.100	(544.900)
		Employee benefits expenses	469.700	435.600
		Other expenses	1743.600	1818.500
		TOTAL (B)	8138.600	8472.700	3945.312
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1075.400	1299.000	689.848
Less	FINANCIAL EXPENSES (D)		480.300	260.500	211.318
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		595.100	1038.500	478.530
Less/ Add	DEPRECIATION/ AMORTISATION (F)		662.100	503.900	448.606
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		(67.000)	534.600	29.924
Less	TAX (I)		(47.600)	221.000	10.252
	PROFIT/(LOSS) AFTER TAX (G-I) (J)		(19.400)	313.600	19.672
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	1.216	0.000
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	NA	2.000
		Proposed divided on equity shares	NA	NA	14.112
		Provision for tax on distributed profits	NA	NA	2.344
		Interim Dividend	NA	NA	0.000
		Dividend Distribution tax	NA	NA	0.000
	BALANCE CARRIED TO THE B/S		NA	NA	1.216
	EARNINGS IN FOREIGN CURRENCY
		Calculated on FOB Basis	6767.500	7440.000	0.000
		Dividend received	4.200	1.900	0.000
		Export Earnings	0.000	0.000	2810.101
	TOTAL EARNINGS		6771.700	7441.900	2810.101
	IMPORTS
		Raw Materials	87.000	11.200	420.318
		Stores & Spares	95.500	19.800	28.563
		Capital Goods	506.300	431.200	82.521
	TOTAL IMPORTS		688.800	462.200	531.402
	Earnings/(Loss) Per Share (Rs.)		(4.03)	65.12	4.18

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2012	31.09.2012
	1^st Quarter	1^ST Quarter
Net Sales	2607.300	2875.700
Total Expenditure	2304.700	2545.100
PBIDT (Excl OI)	302.600	330.600
Other Income	10.900	22.500
Operating Profit	313.500	353.100
Interest	146.300	146.000
Exceptional Items	0.000	0.000
PBDT	167.200	207.100
Depreciation	179.400	149.200
Profit Before Tax	(12.200)	57.900
Tax	(4.600)	19.700
Provisions and contingencies	0.000	0.000
Profit After Tax	(7.700)	38.200
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	(7.700)	38.200

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(0.21)	3.20	0.42
Net Profit Margin (PBT/Sales)	(%)	(0.73)	5.55	0.67
Return on Total Assets (PBT/Total Assets}	(%)	(0.76)	6.09	0.59
Return on Investment (ROI) (PBT/Networth)		(0.06)	0.47	0.04
Debt Equity Ratio (Total Liability/Networth)		7.19	6.97	4.85
Current Ratio (Current Asset/Current Liability)		3.29	3.31	5.10

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	No
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	No
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

CONTINGENT LIABILITIES: (Rs. in millions)

(To the extent not provided for)

Particulars	31.03.2012
Claim against the Company not acknowledged as debts	2.900
Counter Guarantee given to Banks	59.500
On Account of Bill discounted	466.600
Disputed income tax demand not provided for-Appeals filed before Appellate Authorities are pending	-
Disputed Sales tax demand not provided for	3.500
Disputed Service tax not provided for	11.100
On account of export obligation covered by letter of undertaking	470.300

PERFORMANCE REVIEW, MANAGEMENT DISCUSSION, ANALYSIS REPORT AND OUTLOOK FOR THE CURRENT YEAR:

The year 2011 -2012 was an extremely challenging year, especially for textile mills in South India.

Last year's government decision to first ban cotton and later yarn had destroyed demand due to huge price increase that happened while the export ban was in force in the International markets. The ban ensured that Indian mills did not benefit from the high prices but were severely impacted when prices crashed to 50% level post lifting of the ban.

When trading conditions slowly returned to normal from the impact of Indian governments inexplicable actions. Both Tamilnadu and Andhra Pradesh where they have their units faced severe power problems and the mills were badly impacted.

35% power shortage in Tamilnadu resulted in almost 90% shortage to mills and industries in South and West Tamilnadu due to TNEBs discrimination. Units in and around Chennai, Cement, Steel, Flour mills and a few others managed to get themselves exempt from the severe power restrictions. This large scale discrimination resulted in others bearing nearly 90% power cuts.

In Andhra Pradesh too the power situation was bad with upto 3 days power holidays per week besides peak hour restrictions.

As a result of adverse trading conditions during the first half and severe power constraints later they were forced to incur net loss.

The steep increase in interest costs, disallowance of TUF rebate for investments made during the shadow period when the government was contemplating of the extension of TUF etc steeply increased their Interest burden.

Their efforts to get a dedicated line to kovilpatti unit which was suffering over 10 hours of power outage every day being linked to Kovilpatti town feeder fructified only in June. They have invested over 60.000 millions for the same. In the coming months thanks to their dedicated feeder they will be able to get continuous power to the extent that they generate using their wind mills and third party purchase.

They have augmented their power supply position to take their own power to 80% of their requirement by additional investment in wind mills and purchase of power, as two of their 3 units in Tamilnadu have dedicated feeders.

Working is going on to create a new substation near their third unit, once the substation gets commissioned, they will be able to lay a dedicated line to their third unit as well.

India despite its various infrastructural and policy issues is fast emerging as the most competitive destination for yarns and grey fabric, the few aberrations in draw back affecting fabric exports are expected to be corrected in this years draw back policy. They expect a normal year with reasonable net profits as they have taken adequate measures to overcome last year's issues.

The turnover dropped marginally to Rs. 9106.000 Millions due to lower per unit realisation and power constraints in spite of commissioning their new unit.

Cash generation during the year was Rs. 595.100 Millions Repayments made Rs. 394.300 Millions capital investments made Rs. 1638.500 Millions and loans availed Rs. 983.600 Millions.

They were able to tighten the receivables and keep a tight control over inventories during the year which helped in improved cash flow.

As they have little capital work in progress and no new projects except the 2 wind mills they expect to have a comfortable cash flow situation and will be able to bring down their borrowings especially the non TUF portion during this year.

They enjoyed excellent industrial relation at all their units and the employee strength stands at 4271.

Dividends, as they have sufficient carry forward in their profit and loss account even though they have incurred a net loss, it is proposed to declare a dividend of 10%.

FINANCE:

During the year, the Company availed term loans to the tune of Rs. 983.600 Millions and repaid loans to the extent of Rs. 408.300 Millions to Banks/ Financial institutions.

FIXED ASSETS:

· Land

· Buildings

· Furniture

· Plant and Machinery

· Vehicles

· Office and Equipment

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 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 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.54.60
UK Pound	1	Rs.87.31
Euro	1	Rs.69.86

INFORMATION DETAILS

Report Prepared by :

BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	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	NO
--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.