MIRA INFORM REPORT

Report Date :

19.11.2012

IDENTIFICATION DETAILS

Name :	MAHARAJA SHREE UMAID MILLS LIMITED
Registered Office :	Krishna, 7^th Floor, Room No. 706, 224, A.J.C Bose Road, Kolkata-700017, West Bengal
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	12.08.1939
Com. Reg. No.:	21-128650
Capital Investment / Paid-up Capital :	Rs.259.200 Millions
CIN No.: [Company Identification No.]	L17124WB1939PLC128650
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Yarns and Fabrics.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (64)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 28100000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an old and well established company having fine track. The financial position of the company appears to be strong and healthy. Management appears to be well experienced and knowledgeable businessmen. Trade relations are reported decent. Business is active. Payments are reported to be regular and as per commitments. The company can be considered 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

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	ICRA
Rating	BBB + [Long Term]
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	28.12.2011

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 :	Krishna, 7^th Floor, Room No. 706, 224, A.J.C Bose Road, Kolkata-700017, West Bengal, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	kolkata@msumindia.com
Head Office :	Located at Jodhpur Road, Pali-306401, Rajasthan, India

DIRECTORS

AS ON 31.03.2012

Name :	Mr. L N Bangur
Designation :	Chairman cum Managing Director
Date of Birth/Age :	26.08.1949
Qualification :	B.Com
Name :	Mr. Govind Sharda
Designation :	Executive Director
Date of Birth/Age :	09.11.1966
Qualification :	B.Com(Hons) C.A
Name :	Mr. Yogesh Bangur
Designation :	Director (CA & S)
Date of Birth/Age :	08.11.1983
Qualification :	M. Sc in Programme and Project Management
Name :	Mrs. Alka Bangur
Designation :	Director
Date of Birth/Age :	29.11.1954
Qualification :	M.B.A
Name :	Mr. SS Kothari
Designation :	Director
Name :	Mr. Chandravadan Desai
Designation :	Director
Name :	Mr. Amitav Kothari
Designation :	Director
Name :	Mr. GR Agarwal
Designation :	Director
Date of Birth/Age :	15.08.1945
Qualification :	B. Sc. B. Text, M. Tech, PGDBM

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2012

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
		As a % of (A+B)
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	4086180	15.76
Bodies Corporate	15305220	59.05
Sub Total	19391400	74.81
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	19391400	74.81
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	5130324	19.79
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	1027619	3.96
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	292989	1.13
Any Others (Specify)	77668	0.30
Non Resident Indians	77243	0.30
Clearing Members	425	0.00
Sub Total	6528600	25.19
Total Public shareholding (B)	6528600	25.19
Total (A)+(B)	25920000	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)	25920000	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Yarns and Fabrics.

Products :

PRODUCT DESCRIPTION	ITEM CODE
Cotton Yarn	52051100
Blended Yarn	55091100
Cotton Yarn	52071000

PRODUCTION STATUS [AS ON 31.03.2012]

Particulars	Installed Capacity
Spindles	109344
Rotors	2256
Looms	494

ACTUAL PRODUCTION:

Particular	Units	Actual Production
Fabric	(‘000 Mtrs)	20986
Yarn	MT	21054

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Bank of Baroda

· ICICI Bank Limited

· IDBI Bank Limited

· State Bank of Bikaner and Jaipur

· State Bank of India

· The Pali Urban Co-operative Bank Limited

· Kotak Mahindra Bank Limited

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Term Loans- from Banks	363.099	411.716
From Banks
Rupee Loans	457.939	521.730
TOTAL	821.038	933.446
NOTE: 1. Term loans are secured by first pari passu charge on the entire fixed assets and second charge on the current assets of the Pali Establishment Unit i.e. The Textile Unit and the Power Generation Unit of the company situated at Pali, including equitable mortgage of Factory Land and Building situated at Pali. 2. Terms of repayment are given below: a) Loan taken from State Bank of India is repayable in quarterly installments of Rs. 13.000 Millions each. b) Loan taken from IDBI Bank Limited is repayable in quarterly installments of Rs. 13.438 Millions each. c) Loan taken from ICICI Bank Limited is repayable in quarterly installments of Rs. 6.250 Millions each. d) Loan taken from State Bank of Bikaner and Jaipur is repayable in quarterly installments of Rs. 37.500 Millions commencing from 30.06.2013. Working Capital Loans are secured by first pari passu charge on present and future stock of raw materials, stock-in-process, finished goods, stores and spares, book debts, etc., and second pari passu charge on the Fixed Assets of the Pali Establishment i.e. the Textile Unit and the Power Generation Unit of the company situated at Pali.
Unsecured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
From Banks
Rupee Loans	200.000	100.000
TOTAL	200.000	100.000
NOTE: Working Capital Loans are secured by first pari passu charge on present and future stock of raw materials, stock-in-process, finished goods, stores and spares, book debts, etc., and second pari passu charge on the Fixed Assets of the Pali Establishment i.e. the Textile Unit and the Power Generation Unit of the company situated at Pali.

Banking Relations :	--
Auditors :
Name :	BD Gargieya Chartered Accountant
Address :	Jaipur, Rajasthan, India
Related Parties :	· Iota Mtech Power LLP · Sidhidata Power LLP · The Peria Karamalai Tea and Produce Company Limited · Digvijay Investments Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs.10/- each	Rs.300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
160000	Equity Shares	Rs.10/- each	Rs.1.600 Millions
25760000	Equity Shares issued as Bonus Shares out of Reserves	Rs.10/- each	Rs.257.600 Millions
	TOTAL		Rs.259.200 Millions

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		259.200	86.400	86.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		6776.609	3009.710	1508.850
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		7035.809	3096.110	1595.250
LOAN FUNDS
1] Secured Loans		821.038	933.446	1233.165
2] Unsecured Loans		200.000	100.000	50.000
TOTAL BORROWING		1021.038	1033.446	1283.165
DEFERRED TAX LIABILITIES		116.725	43.334	48.651
TOTAL		8173.572	4172.890	2927.066
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1816.581	1322.171	1319.365
Capital work-in-progress		180.051	1.925	36.667
INVESTMENT		2003.313	946.932	547.734
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1034.284	1260.869	802.142
	Sundry Debtors	431.240	453.057	213.780
	Cash & Bank Balances	360.290	113.181	35.311
	Other Current Assets	7.603	4.178	0.000
	Loans & Advances	3315.347	638.079	146.701
Total Current Assets		5148.764	2469.364	1197.934
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	53.754	28.101	12.614
	Other Current Liabilities	555.173	264.247	125.311
	Provisions	366.210	275.154	36.709
Total Current Liabilities		975.137	567.502	174.634
Net Current Assets		4173.627	1901.862	1023.300
MISCELLANEOUS EXPENSES		0.000	0.000	0.0.00
TOTAL		8173.572	4172.890	2927.066

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	4252.120	4314.279	3195.250
		Other Income	196.968	42.146	4.328
		TOTAL (A)	4449.088	4356.425	3199.578
Less	EXPENSES
		Cost of materials consumed	3187.490	2905.201
		Purchase of Traded Goods	110.720	71.819
		Manufacturing Expenses	561.121	578.281
		Employee benefits expense	276.937	255.411	2828.564
		Administrative, Selling and Other Expenses	101.085	103.820
		Extraordinary Items	(5013.328)	(1540.034)
		Changes in inventories of finished goods and work-in-progress	(66.071)	(78.433)
		TOTAL (B)	(842.046)	2296.065	2828.564
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		5291.134	2060.360	371.014
Less	FINANCIAL EXPENSES (D)		22.035	53.640	61.199
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5269.099	2006.720	309.805
Less/ Add	DEPRECIATION/ AMORTISATION (F)		117.170	119.634	118.516
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		5151.929	1887.086	191.299
Less	TAX (H)		1061.569	351.460	45.748
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		4090.360	1535.626	145.551
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1453.030	152.169	79.697
Add / Less	TAX ADJUSTMENTS FOR EARLIER YEAR (NET)		(0.038)	0.033	2.192
	PROVISION FOR DIMINUTION IN THE VALUE OF INVESTMENTS WRITTEN BACK		0.000	15.577	0.000
Less	APPROPRIATIONS
		Transfer to General Reserve	500.000	200.000	50.000
		Proposed Dividend	129.600	43.200	21.600
		Tax on Proposed Dividend	21.024	7.175	3.671
	BALANCE CARRIED TO THE B/S		4892.728	1453.030	152.169
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	342.963	70.813	58.896
	IMPORTS
		Stores & Spares	30.562	21.339	29.456
		Capital Goods	23.556	9.965	49.940
	TOTAL IMPORTS		54.118	31.304	79.396
	Earnings / (Loss) Per Share (Rs.)		157.81	59.24	--

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012
Type	1^st Quarter	2^nd Quarter
Net Sales	1190.200	1167.100
Total Expenditure	1053.300	1005.600
PBIDT (Excl OI)	136.900	161.500
Other Income	32.000	36.5000
Operating Profit	168.900	198.000
Interest	28.500	25.700
PBDT	140.400	172.300
Depreciation	54.200	58.800
Profit Before Tax	86.200	113.500
Tax	27.200	34.200
Profit After Tax	59.000	79.300
Net Profit	59.000	79.300

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	91.93	35.25	0.04
Net Profit Margin (PBT/Sales)	(%)	121.16	43.74	0.05
Return on Total Assets (PBT/Total Assets}	(%)	73.97	49.77	0.15
Return on Investment (ROI) (PBT/Networth)		0.73	0.61	0.11
Debt Equity Ratio (Total Liability/Networth)		0.28	0.52	0.10
Current Ratio (Current Asset/Current Liability)		5.28	4.35	6.85

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

BUSINESS:

Owing to contrasting policy decisions taken by the authorities the cotton textile sector had a lackluster performance for the financial year ended 31st March 2012. The turnover was marginally impacted adversely due to uncertainties created by policy decisions. During such testing time, the Company made a significant growth in value added products by introduction of multiple additions to the existing range of products / segments.

NEW BUSINESS DEVELOPMENT:

The Company has already taken initiatives to move up in the textile value chain. Major capital items’ orders and requisite infrastructure creation is under execution. The project is expected to be commissioned during the current financial year. The project is expected to cement Company’s position in value added segment.

MANAGEMENT DISCUSSION AND ANALYSIS:

The theory of economic decoupling is again in vogue with the slowing down of GDP growth and repetitive monthly negative IIP data. The looming inflationary pressure and widening trade deficit for the national economy coupled with dried up inflow of investments in the economy is reflected in pessimism prevalent in all sectors of economy. The tightening of monetary policy coupled with a contrasting inflationary pressure has set in a negative tone in economy notwithstanding the fact that economic growth in vicinity of 7% is not dismal.

Fiscal 2012 began with booming shades of growth for the textile industry but shadows of pressurized profits for the textile industry were visible quite early due to indecisive and momentary actions of the chosen departments of the Government of India that are responsible for having friendly policies for the general well being of economy and industry. While India remains the second largest importer of textile machinery from EU, no significant expansion in the industry was executed in time to convey the sentiments of the industry.

During the year, the Indian Rupee initially strengthened followed by a significant depreciation against USD to bring even more uncertainty in the export and import market. Strengthening of USD generally helps enhance exports, yet in the peculiar economic journey that they are into, the depreciation of the national currency is considered a benefit to the buyer resulting in continuous pressure on the otherwise weaker textile segment. Frequent intervention from the Apex bank is being ruled out to bring stability to the national currency to pose further challenges for facilitating export potential.

During the previous cotton season, the prices of cotton reached historic highs before registering a historic fall. The stock built-up by cotton yarn manufacturers during the crop season led to value erosion after multiple adverse interventions by the policy makers. The decisions of the policy makers created international impact, India being the second largest producer and consumer of cotton that had cascading effect on the entire cotton value chain.

With textile being a discretionary expenditure, any adverse policy decision has got higher multiplication on the financial outcome of the business.

The trend of frequent changes in the decision for the cotton sectors continue even during the current crop season. With cotton crop largely dependent upon monsoon in India, frequent interventions through prudent and unpredictable, unindicative policy measures only worsen the outlook for the industry. With the national economy having grown in the vicinity of 7%, the domestic demand remains robust whereas the export market may continue lackluster performance.

They need to review performance of the Company in this backdrop. The comprehensive report hereunder should be read in conjunction with the audited financial statements and notes appended thereto for the periods under reference. The financial reporting has been aligned to revised pronouncement having changes in schedule VI to the Companies Act. The previous year financial figures have undergone a change due to re-grouping requirement. The discussion contains some forward looking statements based upon the intent and perception of the management of the Company. However, the actual outcome may be influenced by the external factors.

OPERATIONAL PERFORMANCE FOR THE YEAR:

During the year, the Company commissioned its wind power project in the western part of Rajasthan adding up 8.95 MW capacity. The Company firmed up its plan for modernization of its spinning production capacity and expansion of fabric business that is expected to go in productions towards the later half of the following financial year.

INCOME:

The Company derives its operating revenues from Yarn (cotton / synthetic) and fabric businesses. During the year, the revenues had a minor set-back owing to poor market off-take led by volatility in the cotton market caused due to political interventions.

The Company derives 21% (Previous Year: 22%) of its product revenues by way of export of its products, of which 40% (Previous year 8%) is in terms of Foreign exchange. Direct exports registered growth of 384% on FOB value basis, year-on-year. The bottom weight range was strengthened during the year while value added yarn capacities have been added looking to the market response. With upward move in textile value chain, the Company expects to fetch a better realization per unit in the coming periods. The Company has made entry into the apparel business during the year. In the following years, a larger share of revenues is expected from the new line of business.

Capitalizing upon its competence and detailed understanding about the textile processes, the Company is building upon its outsourcing model to provide larger basket of products for the dynamic requirements of customers. The Company continues to build volumes in institutional segment of customers as part of its long term strategy. Widespread customer base ensures that no single customer accounts for significant part of sales of its chosen product portfolio to have any adverse impact in case of any downslide.

Towards the end of the fiscal, the Company commissioned its Wind Power project in western Rajasthan with initial capacities of 8.95 MW. The revenues from the full year operations would be visible in the following financial year. “Other Income” represents the Returns earned on parking of the surplus cash available with the Company subsequent to monetization of its shareholding in the Andhra Pradesh Paper Mills Limited.

MAJOR COSTS:

RAW MATERIALS COSTS:

The cotton crop size at the national level has been the highest in the last two seasons. However, due to imperfect policy measures, the prices of major raw material, i.e. cotton registered historic dips after registering a historic high in the initial part of the crop season, the stocks whereof were carried forward and consumed during the current financial year. All through the later half of the previous crop season, the prices of cotton struggled to stablise whereas, following a prudent stocking policy, the Company, like all other established cotton textile players, continued to consume higher cost cotton with the prices of the finished goods aligned to the beaten down crop prices. Whereas the average cost of clean cotton increased by 18%, the prices of cotton yarn registered marginal growth of 1% resulting in higher raw material cost as percentage to sales revenue.

Increase in the cost of traded goods is in line with the increase in the volume. Overall input costs after considering change in the processed inventory accounted for 76% of sales as compared to 67% in the previous year. The policy measures remain unpredictable, more often than not, reversible after damaging, but the Company has taken corrective measures to align the stocking norms in view of unpredictable political compulsions that may lead to erosion of value in otherwise pessimistic industrial view.

MANUFACTURING COSTS:

The Company has got adequate back up power facilities to facilitate manufacturing in the event of a grid supply failure. The total power and fuel costs were at Rs. 456.000 Millions, down by 2% from the previous year Rs. 466.200 Millions after absorbing 25% increase in coal costs and 17% increase in grid power costs. The per unit consumption parameters, however, do not convey the efforts made to rationalize the consumption in view of unequal variation in the product mix.

The strategic decision of sourcing a part of its power requirement from the group captive usage generation facilities has enabled the Company to maintain lower cost of procuring power. As part of its Social Measures, the Company had commissioned its water re-cycling plant with the dual intent of conserving natural resources as well as ensuring abundant availability of water for all future expansion. The higher costs of operating pollution control measures at Rs. 8.100 Millions (PY Rs. 5.200 Millions) has got its indirect benefits in operating costs of manufacturing operations.

MANPOWER COSTS:

The entire manufacturing operations are manpower intensive. The year witnessed a significant migration of work forces to various infrastructure projects run by the government. However, abundance of skilled officers / engineers ensures the optimal operating outcome. During the year, the manpower costs have gone up by 8.4% from Rs.255.400 Millions to Rs. 276.900 Millions. The costs as percentage to sales have increased from 5.9% to 6.5% largely due to strategic business decisions aligned to long term growth plan of business that would have visibility over the period of time.

SELLING AND GENERAL ADMINISTRATION COSTS:

The selling costs have reduced by 6% year on year and account for 1.4% of sales as compared to 1.5% of sales in the previous year. Other administrative costs were almost unchanged at less than 1% of sales.

OUTLOOK:

During the current financial year, most of the textile players suffered due to unpredictable and reversible policy announcements and timing of the same. The government policies have bearing on the international market impacting the off-take of the products, being the second largest player in the world. Coupling the negative international market sentiments led by economic crisis and slow recovery cycle, the domestic market is also expected to remain dull due to higher inflation rates and tighter monetary regime that is expected to shrink the size of the operational industry in the country. The Company, however, has to consider it an opportunity to establish in-roads in the competitive segment.

During the year, the Company has initiated its fabric expansion plan. The project, when operational, is expected to bring sizable revenues from value added products that has potential to bring additional disproportionate value with minor capital expenditure. The scalable manufacturing competence is reflection of management commitment to build and strengthen its position in huge textile sector. Towards the end of the current financial year, the Company could be looking at fetching benefits post expansion of the intended project.

Cotton, notwithstanding increase in the acreage, is expected to remain firm, having bottomed out during the current financial year. Once the prices and trends are stabilized and perceived so in the industry, the off-take is expected to take off with the past prolonged postponement of the discretionary spend. However, volatility in the international currency market could have some bearing on overall volume growth, Indian industry being dependent upon export business. Overall, the Company remains optimistic for the upside in the industry with very limited scope in offing for the downside. Inclusion of Textile Upgradation Fund Scheme in the next five year plan has indicated the intent of the Government as well to continue to pursue expansion of the industry.

FIXED ASSETS:

· Land

· Buildings

· Plant and Machinery

· Electric Installation

· Furniture and Fixture

· Equipments

· 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.54.99
UK Pound	1	Rs.87.21
Euro	1	Rs.70.22

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		64

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.