MIRA INFORM REPORT

Report Date :

30.10.2012

IDENTIFICATION DETAILS

Name :	VALSON INDUSTRIES LIMITED
Formerly Known As :	VALSON SYNTHETICS PRIVATE LIMITED
Registered Office :	Unit No.28, Sanjay Building No.6, Udit Mittal Industrial Estate, Andheri Kurla Road, Andheri (East), Mumbai - 400059, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	02.06.1983
Com. Reg. No.:	11-030117
Capital Investment / Paid-up Capital :	Rs.76.608 Millions
CIN No.: [Company Identification No.]	L17110MH1983PLC030117
TAN No.: [Tax Deduction & Collection Account No.]	MUMV07780D
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Yarn.
No. of Employees :	350 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 870000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. 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 – 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	Short Term Non Fund Based Limit: A3 (Suspended)
Rating Explanation	Moderate degree of safety it carry higher credit risk.
Date	May 2012

Rating Agency Name	ICRA
Rating	Fund Based Limit: BBB- (Suspended)
Rating Explanation	Moderate degree of safety it carry moderate credit risk.
Date	May 2012

Reason of Suspended: Because of insufficient information to assess such rating

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.

INFORMATION PARTED BY

Name :	Ms. Hetal
Designation :	Senior Accountant
Contact No.:	91-22-66772901
Date :	20.10.2012

LOCATIONS

Registered Office :	Unit No.28, Sanjay Building No.6, Udit Mittal Industrial Estate, Andheri Kurla Road, Andheri (East), Mumbai-400059, Maharashtra, India
Tel. No.:	91-22-66772901/ 40661000
Fax No.:	91-22-40661199
E-Mail :	hetal@velsonindia.com
Website :	www.velsonindia.com
Location :	Owned
Factory 1 :	Plot No. 8/9, Silvassa Industrial Co-operative Society, 66 KVA Sub-Station Road, Village Amli, Silvassa, Dadra and Nagar Haveli-396230, Union Territory, India
Factory 2 :	Plot No. 113/2/10, Tirupati Industrial Estate, Near 66 KVA Sub-Station Road, Village Amli, Silvassa, Dadra and Nagar Haveli-396230, Union Territory, India
Factory 3 :	Plot No. 7, Survey No. 207, Near Dadra Check Post, Dadra, Dadra and Nagar Haveli-396230, Union Territory, India
Factory 4 :	Survey No. 122/1, Village Silli, Dadra and Nagar Haveli-396230, Union Territory, India
Factory 5 :	Plot No. 1204 and 1705, GIDC Phase III, Vapi-396195, Gujarat, India

DIRECTORS

As on: 28.09.2012

Name :	Mr. Suresh Mutreja Nanakchand
Designation :	Managing Director
Address :	A/3, Mureja Palace, Model Town Co-operative Housing Society, 1st Road, JVPD Scheme, Andheri (West), Mumbai – 400049, Maharashtra, India
Date of Birth/Age :	15.07.1957
Date of Appointment :	01.07.2010
DIN No.:	00052046
Name :	Mr. Lalit Nanakchand Mutreja
Designation :	Whole Time Director
Address :	A/3, Model Town Society, 1^st Road, Next to Allahabad Bank, Juhu, Mumbai – 400049, Maharashtra, India
Date of Birth/Age :	27.12.1971
Date of Appointment :	01.07.2010
DIN No.:	00051888
Name :	Mr. Surendrakumar Suri
Designation :	Director
Address :	702, Divya Gunjan, Gaurav Gardens, B.P. Road, Ganesh Chowk, Kandivali (West), Mumbai – 400067, Maharashtra, India
Date of Birth/Age :	24.08.1943
Date of Appointment :	31.01.2005
DIN No.:	00427799
Name :	Mr. Chandan Shantilal Gupta
Designation :	Director
Address :	Mitra Kunj, 3^rd Floor, Flat 1, 16, Peddar Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	07.06.1955
Date of Appointment :	31.10.2003
DIN No.:	00082609
Name :	Mr. Ram Kumar Sharma
Designation :	Director

KEY EXECUTIVES

Name :	Ms. Hetal
Designation :	Senior Accountant
Name :	Ms. Binita Sharad Gosalia
Designation :	Secretary
Address :	A/9, Mahatre Chawl, R. T. Road, Dahisar (East), Mumbai – 400068, Maharashtra, India
Date of Birth/Age :	24.06.1987
Date of Appointment :	30.07.2011
PAN No.:	AKBPG1611J
Audit Committee :	· Mr. Chandan Gupta, Chairman · Mr. Surendra Kumar Suri · Mr. Lalit N. Mutreja
Shareholders/Investors’ Grievances Committee :	· Mr. Suresh N. Mutreja · Mr. Lalit N. Mutreja · Mr. Surendrakumar Suri

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2012

Category of Shareholder

No. of Shares

% of No. of Shares

(A) Shareholding of Promoter and Promoter Group

(1) Indian

Individuals / Hindu Undivided Family

3756200

49.03

Sub Total

3756200

49.03

(2) Foreign

Total shareholding of Promoter and Promoter Group (A)

3756200

49.03

(B) Public Shareholding

(1) Institutions

(2) Non-Institutions

Bodies Corporate

144709

1.89

Individuals

Individual shareholders holding nominal share capital up to Rs. 0.100 million

1726615

22.54

Individual shareholders holding nominal share capital in excess of Rs. 0.100 million

1511970

19.74

Any Others (Specify)

521306

6.80

Clearing Members

26333

0.34

Market Maker

1212

0.02

Non Resident Indians

117102

1.53

Hindu Undivided Families

376659

4.92

Sub Total

3904600

50.97

Total Public shareholding (B)

3904600

50.97

Total (A)+(B)

7660800

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)

7660800

-

Equity Share Break up (Percentage of Total Equity)

As on: 28.09.2012

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	1.53
Bodies corporate	1.89
Directors or relatives of directors	49.03
Other top fifty shareholders	28.47
Others	19.08
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Yarn.

Products :

Product Description	ITC Code
Synthetic Filament Yarn	5402

· Weft Yarns

· Denim Yarn

· Twisted Yarn (warp Yarn)

· Thick and Thin Yarn (TTY)

· Micro Yarn (72/108/144/216/288/432 Filaments)

· CTS Yarn

· Micro Twisted Yarn

· FDY (Bright)

· Fulldull Text. Yarn (Cotluk)

· 100% Spun Poly Yarn (Single/Double Dyeing)

· Fulldull Twisted Yarn

· Airtex and Ring Yarn

· S/Z Yarn

· Poly/viscose and Poly/cotton

· Cationic Yarn

· Viscose Yarn All Blend (Single/Solid Dyeing)

· Cationic Twisted Yarn

· FR Yarn (flame Retardant)

· Airtex Slub Yarn

Exports :

Products :

Yarn

Countries :

Egypt

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.3.2011)

Particulars	Unit	Installed Capacity		Actual Production
		Vapi	Silvassa	Own	Job Work
Texturising	MT	--	4500	4171	71
Twisting	MT	--	3900	2757	38
Dyeing	MT	6100	--	2690	1436

GENERAL INFORMATION

Suppliers :

· Reliance Industries

Customers :

Wholesalers and Retailers

· Citex Limited

No. of Employees :

350 (Approximately)

Bankers :

· IDBI Bank Limited, 47, Opus Center, Ground Floor, Central Road, Opposite Tunga Paradise Hotel, Andheri (East), Mumbai - 400093, Maharashtra, India

· Bank of India, Ghatkopar (West) Branch, Desai Niwas, M.G. Road,Ghatkopar (West), Mumbai - 400086, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Term Loan from Banks
Bank of India	42.806	13.033
IDBI Bank Limited	25.964	26.292
Vehicle Loans	1.069	0.721
Facilities from Bank of India:
Cash Credit facilities	38.779	25.114
Overdraft facilities	0.000	9.553
Packing Credit facilities	1.780	1.352
Total	110.398	76.065
Notes: Term Loan - Security: (Secured by First charge on Pari Passu basis between BOI and IDBI of Immovable properties situated at various manufacturing locations and further secured by Hypothecation of Movable assets of the company both present and future (Save and except Book-debts) subject to prior charge on certain movable assets created in favour of Bank of India for securing working capital requirements and personal guarantee of Director. Vehicle Loan - Security: (Secured by hypothecation of specific assets). Security :- Working Capital Facility (Secured by First charge on Pari Passu basis between BOI and IDBI of Immovable properties situated at various manufacturing locations and further secured by Hypothecation of Movable assets of the company both present and future (Save and except Book-debts) subject to prior charge on certain movable assets created in favour of Bank of India for securing working capital requirements.) (Secured by hypothecation of stock and book debts of the company, personal guarantee of the directors and deposits of Promoters)
Unsecured Loan	As on 31.03.2012	As on 31.03.2011
Deposits from Related Parties	7.200	3.600
Deposits from Others	36.200	31.100
Total	43.400	34.700

Banking Relations :	--
Auditors :
Name :	Mehta Chokshi and Shah Chartered Accountants
Address :	Mumbai, Maharashtra, India

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
12000000	Equity Shares	Rs.10/- each	Rs.120.000 Millions

Issued:

No. of Shares	Type	Value	Amount
7660800	Equity Shares	Rs.10/- each	Rs.76.608 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7660800	Equity Shares	Rs.10/- each	Rs.76.608 Millions

(i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

Particulars	Opening Balance	Fresh Issue	Bonus	Closing Balance
Equity shares with voting rights
Year ended 31 March, 2012
- Number of shares( in lacs)	76.61	-	-	76.61
- Amount (Rs. in Millions)	76.608	-	-	76.608

(ii) Details of shares held by each shareholder holding more than 5% shares:

Class of shares / Name of shareholders	As at 31 March, 2012
	Number of shares helds	% holding in that class of shares
Equity shares with voting rights
Suresh N. Mutreja	7.02	9.16
Lalit N. Mutreja	6.571	8.58

(iii) Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash, bonus shares and shares bought back for the period of 5 years immediately preceding the Balance Sheet date:

Particulars	Aggregate number of shares (in lacs)
	As at 31 March, 2012
Equity shares with voting rights
Fully paid up by way of Bonus shares as on 9th December 2009.	38.30

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		76.608	76.608	76.608
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		140.691	129.015	111.087
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		217.299	205.623	187.695
LOAN FUNDS
1] Secured Loans		110.398	76.065	73.106
2] Unsecured Loans		43.400	34.700	10.000
TOTAL BORROWING		153.798	110.765	83.106
DEFERRED TAX LIABILITIES		37.042	37.245	36.346
TOTAL		408.139	353.633	307.147
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		306.334	253.278	237.173
Capital work-in-progress		10.304	43.070	16.038
INVESTMENT		0.127	0.127	0.127
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	60.090	69.228	39.436
	Sundry Debtors	77.337	61.743	59.294
	Cash & Bank Balances	9.441	3.367	5.195
	Other Current Assets	11.997	12.041	0.000
	Loans & Advances	20.255	12.627	18.771
Total Current Assets		179.120	159.006	122.696
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	57.254	60.288	46.294
	Other Current Liabilities	30.492	31.897	7.768
	Provisions	0.000	9.663	14.825
Total Current Liabilities		87.746	101.848	68.887
Net Current Assets		91.374	57.158	53.809
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		408.139	353.633	307.147

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	830.898	819.228	677.760
		Other Income	4.915	3.210	1.704
		TOTAL (A)	835.813	822.438	679.464
Less	EXPENSES
		Cost of materials consumed	521.926	522.202
		Employee benefits expense	54.465	26.357
		Other expenses	209.701	219.569
		Changes in inventories of finished goods	1.395	(16.172)
		TOTAL (B)	787.487	751.956	613.009
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		48.326	70.482	66.455
Less	FINANCIAL EXPENSES (D)		12.288	8.028	4.151
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		36.038	62.454	62.304
Less/ Add	DEPRECIATION/ AMORTISATION (F)		21.795	22.568	25.144
	PROFIT BEFORE TAX (E-F) (G)		14.243	39.886	37.160
Less	TAX (H)		2.567	13.056	12.439
	PROFIT AFTER TAX (G-H) (I)		11.676	26.830	24.721
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		84.313	67.887	58.110
	APPROPRIATIONS
		Transfer to General Reserve	1.500	1.500	1.500
		Dividend on Equity Shares	0.000	7.661	11.491
		Tax on Dividend on Equity Shares	0.000	1.243	1.953
	BALANCE CARRIED TO THE B/S		94.489	84.313	67.887
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	14.410	8.284	11.777
	TOTAL EARNINGS		14.410	8.284	11.777
	IMPORTS
		Machinery Spares	2.806	0.000	0.053
		Capital goods (Capital WIP)	0.040	0.000	0.000
	TOTAL IMPORTS		2.846	0.000	0.053
	Earnings Per Share (Rs.)		1.52	3.50	3.23

Expected Sales (2012-2013): Rs.1000.000 Millions

The above information has been parted by Ms. Hetal

QUARTERLY RESULTS

PARTICULARS	30.06.2012
	1^st Quarter
Net Sales	234.740
Total Expenditure	219.910
PBIDT (Excl OI)	14.830
Other Income	0.000
Operating Profit	14.830
Interest	5.710
Exceptional Items	0.000
PBDT	9.120
Depreciation	6.200
Profit Before Tax	2.930
Tax	0.800
Provisions and contingencies	0.000
Profit After Tax	2.130
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	2.130

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.40	3.26	3.64
Net Profit Margin (PBT/Sales)	(%)	1.71	4.87	5.48
Return on Total Assets (PBT/Total Assets}	(%)	2.93	9.67	10.33
Return on Investment (ROI) (PBT/Networth)		0.07	0.19	0.20
Debt Equity Ratio (Total Liability/Networth)		1.11	1.03	1.00
Current Ratio (Current Asset/Current Liability)		2.04	1.56	1.78

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	Yes
10]	Designation of contact person	Yes
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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

BUSINESS OPERATIONS:

During the year the Company has achieved marginal improvement in turnover. However it witnessed decline in operating Profit. The Turnover increased to Rs. 830.898 Millions from Rs. 819.228 Millions - a growth of 1.42% and the Net Profit after tax declined to Rs. 11.676 Millions from Rs. 26.830 Millions in the previous year - a decline of 56.48% mainly due to fluctuations in Raw-materials prices (crude base), increase in Power and fuel, Manpower cost and uncertainty in global markets.

The export (FOB value) have however increased to Rs. 14.410 Millions from Rs. 8.284 Millions in the previous year.

MANAGEMENT DISCUSSION AND ANALYSIS

OVERVIEW OF THE ECONOMY

India is projected to see a faster growth of 7.5 per cent this fiscal, on the back of higher savings and investment rates, even as most of the Asia-Pacific economies are likely to expand at a slower pace, as per a United Nations (UN) report. Today India is among the most attractive destinations globally, for investments and business and FDI had increased over the last few years. The Indian economy has continuously recorded high growth rates.

Clean energy investment, excluding research and development, has grown by 600 per cent since 2004. India’s clean energy sector continued to flourish in 2011, with private investment increasing 54 per cent to US$ 10.2 billion, placing the country at sixth position among the G-20 nations. This was the second highest growth rate among the G-20 nations.

The World Economic Forum (WEF) plans to establish permanent physical presence in India by setting up an office in the next twelve months. Today, India is amongst the most important G-20 economies and this underscores Forum’s commitment to the country as a partner.

Indian Textile Industry is one of the leading textile industries in the world. The government is planning to give incentives to the textiles sector with retrospective effect as it seeks to revive India’s second largest manufacturing sector. Companies that become eligible for subsidy will receive an interest waiver. The Ministry is now under pressure to change the norms so that investments become eligible for the scheme.

COMPANY’S BUSINESS

The prominent business of the Company is manufacturing of Polyester Texturised, Twisted and Dyed Yarn and also dyeing job work of Polyester, Cotton and other fancy Yarns which are used for making fabrics for Shirting, Suiting Upholstery, Knitting, Labels and Curtains etc.

Their products are covered under Focus Scheme as declared by Ministry of Commerce, they are getting incentives on the same for export of their goods. The new Silli project which has been partly financed by Promoter’s contribution and partly by Term loan from Bank of India is entitled for getting 5% Interest Subsidy The said new Silli Unit has a Sales Tax exemption till 2017.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Government is planning to give incentives to the textiles sector in order to revive India’s second largest manufacturing sector. The Union Textile Ministry has revised the textile and readymade garment export target for the current financial year to $ 40.5 billion from $ 33 billion set earlier this year. Even though there is slowdown in US and EU markets, the revised target will be achievable in view of the announcement of sops in the recent foreign trade policy and other measures taken by the Government.

OPPORTUNITIES AND OUTLOOK

The biggest growth opportunity for the textile industry arises from the changed global scenario of quota free business environment. Valson Industries Limited has grabbed the opportunity and is rapidly growing in huge domestic and export market. India’s strong performance and growth in the textiles sector is aided by several key advantages that the country enjoys, in terms of easy availability of labour and material, large market demand, presence of supporting industries and supporting policy initiatives from the government.

With the expansion plans of newly set up unit at Silli Village, Union Territory, D. and N. H. the Company is expected to achieve substantial growth both in terms of turnover and profitability. It will also have an edge over others with large variety of products under one roof. Fresh demand from other markets, such as Latin America, African and some Southeast Asian countries has also helped this increase in export registrations.

The Company shall direct all its efforts and resources towards a strong and healthy shareholders wealth creation.

CONTINGENT LIABILITIES

(Rs. In Millions)

Particular	31.03.2012	31.03.2011
i) Claims against the Company not acknowledged as debts The disputed demands of VAT and Entry Tax on the Yarn received for Dyeing Job Work by the Vapi Unit no longer holds good in view of the representation by Vapi Industries Association to the VAT Authorities and Government of Gujarat for explaining that yarn remains yarn at the end of dyeing process and the matching quantity of such Dyed Yarn is returned back to the sender. Therefore it does not constitute “Sale, Consumption or Use” within the state of Gujarat. The Gujarat VAT Authorities have prima-facie understood the matter and have assured to do the needful in the matter. Meanwhile, the Deputy Commissioner of Commercial Tax (Appeals), Division –V, Surat, has granted sine-die Stay against the recovery of demands and also has referred the matter to the pre-audit section for clearance after framing the Appellate Orders for remanding the erroneous assessments back to Assessing Officer.	64.348	64.348
Textile Cess claim against the claim not admitted as debts	0.239	0.239
Excise duty claim against the company not admitted as debts	0.093	0.093

TRADE REFERENCES:

· Reliance Industries

· Citex Limited

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	L17110MH1983PLC030117
Name of the company	VALSON INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	Unit No.28, Sanjay Building No.6, Udit Mittal Industrial Estate, Andheri Kurla Road, Andheri (East), Mumbai - 400059, Maharashtra, India E-mail: cs@valsonindia.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80053922
Type of charge	· Immovable property · Movable property (not being pledge)
Particular of charge holder	IDBI Bank Limited, 47, Opus Center, Ground Floor, Central Road, Opposite Tunga Paradise Hotel, Andheri (East), Mumbai - 400093, Maharashtra, India E-mail: cy.dhuri@idbi.co.in
Nature of instrument creating charge	Letter dated 9th October, 2012 and Letter dated 26th May, 2012.
Date of instrument Creating the charge	09.10.2012
Amount secured by the charge	Rs.30.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 1% p.a. below BPLR; minimum 11.75% p.a. for term loan. BPLR minus 1% p.a. i.e. 11.75% p.a. for working capital. Terms of Repayment Term Loan II of Rs. 30.000 Millions is repayable in monthly installments of Rs 0.500 Million commencing from 15.07.2012 upto 60 months. Margin Term Loan of Rs. 30.000 Millions - No Margins Extent and Operation of the charge Term Loan of Rs.30.000 Millions - First Charge on the moveable and immoveable assets of the Company ranking paripassu with BoI on its existing Term Loan.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Term Loan of Rs.30.000 Millions - First Charge on the moveable and immoveable assets of the Co ranking paripassu with BoI on its existing Term Loan.
Date of instrument modifying the charge	01.06.2011
Particulars of the present modification	The present modification is for reduction in the charge amount from Rs.69.700 Millions to Rs. 30.000 Millions by repaying term loan of Rs. 29.700 Millions and cancel the unavailed cash credit limit of Rs. 10.000 Millions.

FIXED ASSETS

A) Tangible Assets

· Land – Freehold

· Land – Leasehold

· Factory Building

· Plant and Machineries

· Basic Machineries

· Utility Ancillary

· Equipments and Expenses Capitalised

· Electrical Installation

· Office Premises

· Staff Quarters

· Office Equipments

· Computer

· Vehicles – Car

· Vehicles – Scooter

· Furniture and Fixtures

B) Intangible Assets

· Software

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 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.53.81
UK Pound	1	Rs.86.52
Euro	1	Rs.69.50

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.