MIRA INFORM REPORT

Report Date :

26.09.2012

IDENTIFICATION DETAILS

Name :	MALWA INDUSTRIES LIMITED
Registered Office :	230 Industrial Area A, Ludhiana-141003, Punjab
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.03.1993
Com. Reg. No.:	16-013187
Capital Investment / Paid-up Capital :	Rs.402.413 Millions
CIN No.: [Company Identification No.]	U17219PB1993PLC013187
TAN No.: [Tax Deduction & Collection Account No.]	JLDM02516D
PAN No.: [Permanent Account No.]	AABCM1287D
Legal Form :	A closely held Public Limited Liability Company.
Line of Business :	Manufacturer and Exporter of Sewing Accessories and Knitwear Knitted Fabrics.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (32)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 1181040
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a part of the Malwa Group, earlier known as Vidya Sagar Oswal Group. It is an established company having moderate track. The liquidity position of the company appears to be under pressure. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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	LC (Term Loan)
Rating Explanation	Very high risk of default
Rating	A5 (Non Fund Base Limit)
Rating Explanation	Expected to be in default
Date	April, 2011

RBI DEFAILTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office/ Factory :	230 Industrial Area A, Ludhiana-141003, Punjab, India
Tel. No.:	91-161-2229146
Mobile No. :	91-9915700341 (Mr. C K Varsheny)
Fax No.:	91-161-2223603
E-Mail :	mktg.denim@malwagroup.com corporate@malwagroup.com ckvarshney@malwagroup.com
Website :	http://www.malwagroup.com
Location :	Owned
Factory :	Kohara Machiwara Road, Ludhiana, Punjab, India
Area :	70 Acres
Location :	Owned

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Jangi Lal Oswal
Designation :	Non-Executive Chairman/ Director
Address :	B-83, The Mall, Ludhiana-141001, Punjab, India
Date of Birth/Age :	18.07.1951
Date of Appointment :	30.11.1996
DIN No.:	00257644

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	L17115PB1976PLC003702	MALWA COTTON SPINNING MILLS LTD	Managing director	01/01/2009	09/04/1980	-	Active	NO
2	U67120MH1980PLC022409	OSWEGO TRADING AND INVESTMENT COMPANY LIMITED	Director	16/06/1980	16/06/1980	-	Active	NO
3	U74899DL1991PTC043034	S.A. GROWTH FUND PRIVATE LIMITED	Director	14/02/1991	14/02/1991	-	Active	NO
4	U74899DL1991PTC043012	RISHI GROWTH FUND PRIVATE LIMITED	Director	14/02/1991	14/02/1991	-	Active	NO
5	U74899DL1991PTC043008	NEELAM GROWTH FUND PRIVATE LIMITED	Director	14/02/1991	14/02/1991	-	Active	NO
6	U67120DL1991PTC043009	JANGI GROWTH FUND PRIVATE LIMITED	Director	14/02/1991	14/02/1991	-	Active	NO
7	U22219DL1976PTC008056	EXCELLENT PRINTERS PVT LTD	Director	30/06/1993	30/06/1993	-	Active	NO
8	U00000DL1981PTC012375	OSWAL INTERMEDIATES PRIVATE LIMITED	Director	30/06/1993	30/06/1993	-	Active	NO
9	U74899DL1981PTC012376	OSWAL FIBRES PRIVATE LIMITED	Director	30/06/1993	30/06/1993	-	Active	NO
10	U74899DL1980PTC010157	NORTH INDIA CARPET COMPANY PRIVATE LIMITED	Director	30/06/1993	30/06/1993	-	Active	NO
11	U24232DL1981PTC012374	JAGDAMBA CHEMICALS PRIVATE LIMITED	Director	30/06/1993	30/06/1993	-	Active	NO
12	U17113PB1992PLC012689	OSWAL KNIT INDIA LIMITED	Director	10/09/1994	10/09/1994	-	Active	NO
13	U17219PB1993PLC013187	MALWA INDUSTRIES LTD	Director	30/11/1996	30/11/1996	-	Active	NO
14	U72900PB1999PLC022121	OSWAL MULTIMEDIA K. I. D. LIMITED	Director	07/01/1999	07/01/1999	-	Active	NO
15	U00000PB2003PLC026430	OSWAL CORP LIMITED	Director	07/10/2003	07/10/2003	-	Active	NO
16	U00000PB2003PLC026431	MALWA CORP LIMITED	Director	07/10/2003	07/10/2003	-	Active	NO
17	U15203PB1992PLC012647	OSWAL EXIM TRADE LTD	Director	03/04/2006	03/04/2006	-	Active	NO
18	U70101PB1994PTC014638	VIDYA SAGAR ESTATES PRIVATE LIMITED	Director	21/05/2012	21/05/2012	-	Active	NO
19	U65921PB1994PLC014688	MALWA CAPITAL AND FINANCE LIMITED	Director	09/06/2012	09/06/2012	-	Active	NO

Name :	Mr. Rishi Oswal
Designation :	Managing Director
Address :	B-83, The Mall, Ludhiana-141001, Punjab, India
Date of Birth/Age :	26.11.1972
Date of Appointment :	30.11.1996
DIN No.:	00202889

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	U65921PB1994PLC014688	MALWA CAPITAL AND FINANCE LIMITED	Director	09/06/1994	09/06/1994	-	Active	NO
2	L17115PB1976PLC003702	MALWA COTTON SPINNING MILLS LTD	Director	29/07/1994	29/07/1994	-	Active	NO
3	U17219PB1993PLC013187	MALWA INDUSTRIES LTD	Managing director	30/11/1996	30/11/1996	-	Active	NO
4	U72900PB1999PLC022121	OSWAL MULTIMEDIA K. I. D. LIMITED	Director	07/01/1999	07/01/1999	-	Active	NO
5	U18101PB2000PLC023834	OSWAL DREAMZ LIMITED	Director	14/07/2000	14/07/2000	-	Active	NO
6	U00000PB2003PLC026431	MALWA CORP LIMITED	Director	07/10/2003	07/10/2003	-	Active	NO
7	U00000PB2003PLC026430	OSWAL CORP LIMITED	Director	07/10/2003	07/10/2003	-	Active	NO
8	U74899DL1991PTC043012	RISHI GROWTH FUND PRIVATE LIMITED	Director	16/01/2006	16/01/2006	-	Active	NO
9	U74899DL1991PTC043008	NEELAM GROWTH FUND PRIVATE LIMITED	Director	16/01/2006	16/01/2006	-	Active	NO
10	U67120DL1991PTC043009	JANGI GROWTH FUND PRIVATE LIMITED	Director	16/01/2006	16/01/2006	-	Active	NO
11	U13100PB2007PTC031394	R.N.A. ORES & MINERALS PRIVATE LIMITED	Director	18/10/2007	18/10/2007	-	Active	NO
12	U51310CH2009PTC031741	Vastram Worldwide Private Limited	Director	07/09/2009	07/09/2009	-	Active	NO

Name :	Mr. Rahul Oswal
Designation :	Executive Director
Address :	B-83, The Mall, Ludhiana-141001, Punjab, India
Date of Birth/Age :	07.01.1974
Date of Appointment :	30.11.1996
DIN No.:	00257658

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	L17115PB1976PLC003702	MALWA COTTON SPINNING MILLS LTD	Director	29/07/1994	29/07/1994	-	Active	NO
2	U17219PB1993PLC013187	MALWA INDUSTRIES LTD	Whole-time director	30/11/1996	30/11/1996	-	Active	NO
3	U72900PB1999PLC022121	OSWAL MULTIMEDIA K. I. D. LIMITED	Director	07/01/1999	07/01/1999	-	Active	NO
4	U18101PB2000PLC023834	OSWAL DREAMZ LIMITED	Director	14/07/2000	14/07/2000	-	Active	NO
5	U00000PB2003PLC026431	MALWA CORP LIMITED	Director	07/10/2003	07/10/2003	-	Active	NO
6	U00000PB2003PLC026430	OSWAL CORP LIMITED	Director	07/10/2003	07/10/2003	-	Active	NO
7	U15203PB1992PLC012647	OSWAL EXIM TRADE LTD	Director	03/04/2006	03/04/2006	-	Active	NO

Name :	Mr. Rajiv Dewan
Designation :	Non-Executive Director
Address :	96-F, Rishi Nagar, Ludhiana-141001, Punjab, India
Date of Birth/Age :	30.11.1961
Date of Appointment :	26.07.2002
DIN No.:	00007988

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	U17219PB1993PLC013187	MALWA INDUSTRIES LTD	Director	26/07/2002	26/07/2002	-	Active	NO
2	L32202PB1981SGC004616	PUNJAB COMMUNICATIONS LIMITED	Director	27/11/2003	27/11/2003	-	Active	NO
3	U18101PB1999PLC022120	MALWA MILLENNIUM DESIGNS LIMITED	Director	29/03/2004	29/03/2004	-	Active	NO
4	L99999PB1990PLC010307	TRIDENT LIMITED	Director	14/05/2005	14/05/2005	-	Active	NO
5	U15420PB2005PLC029046	Trident Agritech Limited	Director	29/09/2007	24/10/2005	-	Amalgamated	NO
6	L72100PB1996PLC017625	TRIDENT INFOTECH CORPORATION LIMITED	Additional director	15/11/2006	15/11/2006	15/03/2007	Amalgamated	NO
7	U74999PB2006PLC030716	LOTUS INTEGRATED TEXPARK LIMITED	Director	29/11/2006	29/11/2006	31/03/2008	Active	NO
8	U45200PB2007PLC030828	LOTUS INFRABUILD LIMITED	Director	18/01/2007	18/01/2007	25/12/2007	Active	NO
9	L72900PB2007PLC030830	TRIDENT INFOTECH LIMITED	Director	18/01/2007	18/01/2007	30/01/2008	Amalgamated	NO
10	U72900PB2007PLC030829	TRINETRA TECHNOLOGIES LIMITED	Director	18/01/2007	18/01/2007	-	Active	NO
11	U45208PB2007PLC030942	ABHISHEK GLOBAL VENTURES LIMITED	Director	06/03/2007	06/03/2007	09/03/2008	Amalgamated	NO
12	U45208PB2007PLC030943	ABHISHEK VENTURES & PROJECTS LIMITED	Director	06/03/2007	06/03/2007	-	Active	NO
13	U00000CH2003PLC026524	TRIDENT GROUP LIMITED	Additional director	27/02/2008	27/02/2008	18/03/2009	Active	NO
14	U62100PB2008PLC032157	Trident Aerospace Limited	Director	30/07/2008	30/07/2008	-	Active	NO
15	U40105PB2011PLC034802	TRIDENT POWERCOM LIMITED	Director	09/03/2011	09/03/2011	-	Active	NO
16	U72900PB2011PLC034894	TRIDENT CORPORATE SOLUTIONS LIMITED	Director	31/03/2011	31/03/2011	-	Active	NO
17	U72900PB2011PLC034893	TRIDENT CORPORATE SERVICES LIMITED	Director	31/03/2011	31/03/2011	-	Active	NO
18	U67120PB2011PLC034971	TRIDENT BROKERS LIMITED	Director	21/04/2011	21/04/2011	-	Active	NO
19	U85110PB2011PLC034968	TRIDENT SWAASTHYA LIMITED	Director	21/04/2011	21/04/2011	-	Active	NO
20	U73100PB2011PLC034965	TRIDENT RESEARCH LIMITED	Director	21/04/2011	21/04/2011	-	Active	NO
21	U74900PB2011PLC034960	TRIDENT BRANDS LIMITED	Director	21/04/2011	21/04/2011	-	Active	NO

Name :	Mr. R C Singal
Designation :	Non-Executive Director
Address :	B-23/750, Street No. 5, Janakpuri, Ludhiana-141003, Punjab, India
Date of Birth/Age :	27.01.1954
Date of Appointment :	30.06.1998
Name :	Mr. Hemant Kalia
Designation :	Non-Executive Director
Address :	154-G, BRS Nagar, Ludhiana-141001, Punjab, India
Date of Birth/Age :	17.12.1954
Date of Appointment :	30.06.1998
DIN No.:	00514357

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	U17219PB1993PLC013187	MALWA INDUSTRIES LTD	Director	30/06/1998	30/06/1998	-	Active	NO
2	U17113PB1992PLC012689	OSWAL KNIT INDIA LIMITED	Director	28/02/2002	28/02/2002	-	Active	NO
3	U18101PB1999PLC022120	MALWA MILLENNIUM DESIGNS LIMITED	Director	29/03/2004	29/03/2004	-	Active	NO

Name :	Dr. P R Roy
Designation :	Non-Executive Director
Address :	36, Amaltas Bungalows, Vastra Pur Road, Ahmedabad-380054, Gujarat, India
Date of Birth/Age :	11.07.1941
Date of Appointment :	27.04.2006
DIN No.:	00514330

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	U17219PB1993PLC013187	MALWA INDUSTRIES LTD	Director	27/04/2006	27/04/2006	-	Active	NO
2	U17110GJ1996PTC029824	SAN-BLUE ENTERPRISES PRIVATE LIMITED	Director	04/07/2009	04/07/2009	02/05/2012	Active	NO
3	U15429AP2002PLC038489	NSL TEXTILES LIMITED	Director	28/12/2009	28/12/2009	-	Active	NO

Name :	Mr. Kamal Kant Upadhyay
Designation :	Non-Executive Director
Address :	Flat No. 1502 B, IDBI Officers Flats, Sector 38-B, Chandigarh-160034, Chandigarh, India
Date of Birth/Age :	23.05.1966
Date of Appointment :	08.09.2008
DIN No.:	01557185

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	L24232DL1992PLC227186	SURYA PHARMACEUTICAL LIMITED	Nominee director	22/05/2007	22/05/2007	24/12/2010	Active	NO
2	U17219PB1993PLC013187	MALWA INDUSTRIES LTD	Nominee director	08/09/2008	08/09/2008	10/07/2012	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Malwa Cotton SPG Mills Limited, India	9630700
Neelam Growth Fund Private Limited, India	9323000
Jangi Growth Fund Private Limited, India	9302600
Rishi Growth Fund Private Limited, India	9390000
S.A. Growth Fund Private Limited, India	185400
Alden Global (Mauritius) Limited, India	750000
Prime Holding Private Limited, India	150000
Divoja Investment And Finance Private Limited, India	47000
Vidya Sagar Oswal	45000
Jasbir Singh	100
Ram Kumar	100
Vinod Gupta	200
Mahesh Malwa Cotton SPG Mills Limited, India	100
Rajesh Kumar Verma	100
India 2020 Limited, India	1417000
Total	40241300

LIST OF ALLOTTEES AS ON 28.03.2012

Names of Shareholders	No. of Shares
Rishi Growth Fund Private Limited, India	4300000
S.A. Growth Fund Private Limited, India	250000
Jangi Growth Fund Private Limited, India	975000
TOTAL	5525000

AS ON 30.09.2011

Equity Share Breakup	Percentage of Holding
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	5.39
Bodies corporate	94.50
Directors or relatives of directors	0.11
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of
Sewing Accessories and Knitwear Knitted Fabrics.

Products :

Product Description	Item Code
Denim Fabric	52094200
Jeans Wear	62034200 / 62046200
Cotton Yarn	52051110

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity
Rotors	Nos.	1840
Spindles	Nos.	9612
Looms	Nos.	95
Garmenting	Pcs.	4.5 mn pcs p.a. (On 2 shifts basis)

NOTE: The installed capacity is as certified by the management and not verified by the Auditors being a technical matter

Particulars	Unit	Actual Production
Yarn*	Lacs Kgs	72.74
Denim Fabric#	Lacs Mtrs	138.27
Garments	Lacs Pcs.	13.98
Electricity (*)	Lacs Units	365.07

Note:

• * Includes 65.77 Lacs Kgs. Yarn transferred to weaving unit for captive consumption.
• # Include 13.67 Lacs Meters Fabric transferred to Garment Division for captive consumption.
• (*) Includes 64 Lacs units being self consumption of CPP and 271 Lacs units internal transfer to Fabric/Garments units.

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· IDBI Bank Limited, Scb Branch, Feroz Gandhi Market, Ludhiana - 141001,

· Punjab, India

· State Bank of Patiala, Commercial Branch, Arati Complex, Miller Ganj,, Ludhiana - 141003, Punjab, India

· State Bank of India, Sales Hub Mid Corporate, Scb Miller Ganj, Ludhiana - 141003, Punjab, India

· Canara Bank, Bharat Nagar Chowk Branch, Ludhiana - 141001, Punjab, India

Facilities :

SECURED LOAN	AS ON 31.03.2011 (RS. IN MILLIONS)	AS ON 31.03.2010 (RS. IN MILLIONS)
Rupee term loans banks secured	1795.241	2041.547
Working capital loans banks secured	717.651	637.329
Loans taken for vehicles secured	11.739	3.771
Interest accrued due other debt secured	50.517	14.841
Total	2575.148	2697.488

UNSECURED LOAN	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Other debt unsecured	72.250	52.500
TOTAL	72.250	52.500

Banking Relations :	--
Auditors :
Name :	S.C. Vasudeva and Company Chartered Accountant
Address :	B-41, Panchseel Enclave, New Delhi-110017, India
Tel. No.:	91-161-2774527
Mobile No.:	91-9815420555
Fax No.:	91-161-2771618
E-Mail :	ludhiana@scvasudeva.com
Website:	www.scvasudeva.com
Subsidiaries :	· Sunnycroft Holdings Limited · Cyprus Third Dimension Apparels LLC · Hashemite Kingdom of Jordan Emmetre · Tintolevenderie Industrialie S.r.l. · Italy Veneto Jeans (Italy) · Vastram Worldvide LLC (BVI)

CAPITAL STRUCTURE

AS ON 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
74000000	Equity Shares	Rs.10/- each	Rs.740.000 Millions
1000000	Preferences Shares	Rs.10/- each	Rs.10.000 Millions
	Total		Rs.750.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
40241300	Equity Shares	Rs.10/- each	Rs.402.413 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		402.413	402.413	402.413
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		(0.845)	26.234	383.263
4] (Accumulated Losses)		(106.308)	182.461	0.000
NETWORTH		295.260	611.108	785.676
LOAN FUNDS
1] Secured Loans		2575.148	2697.488	2712.147
2] Unsecured Loans		72.250	52.500	0.000
TOTAL BORROWING		2647.398	2749.988	2712.147
DEFERRED TAX LIABILITIES		193.784	194.534	205.831
TOTAL		3136.442	3555.630	3703.654
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1380.668	1492.293	1641.043
Capital work-in-progress		3.843	17.607	2.960
INVESTMENT		346.547	346.547	203.085
DEFERREX TAX ASSETS		0.000	0.000	2.832
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	848.136	877.624	876.877
	Sundry Debtors	720.112	815.786	791.847
	Cash & Bank Balances	4.119	11.007	6.935
	Other Current Assets	157.127	105.681	0.000
	Loans & Advances	73.227	53.502	346.477
Total Current Assets		1802.721	1863.600	2022.136
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	340.382	134.407	102.100
	Other Current Liabilities	58.398	32.660	66.302
	Provisions	(1.443)	(2.650)	0.000
Total Current Liabilities		397.337	164.417	168.402
Net Current Assets		1405.384	1699.183	1853.734
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3136.442	3555.630	3703.654

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2768.725	2082.984	1824.400
		Other Income	115.306	76.971	(44.500)
		TOTAL (A)	2884.031	2159.955	1779.900
Less	EXPENSES
		Raw Material Consumed	1751.796	1108.681	958.200
		Manufacturing Expenses	306.707	223.642	523.100
		Employee related expenses	207.672	162.458	0.000
		Personnel Expenses	0.000	0.000	157.400
		Administrative and Others Charges	474.602	402.224	69.800
		Selling and Distribution Expenses	0.000	0.000	72.500
		Increase / Decrease in WIP and Finished Goods	0.000	0.000	(15.000)
		TOTAL (B)	2740.777	1897.005	1766.000
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		143.254	262.950	13.900
Less	FINANCIAL EXPENSES (D)		302.578	276.299	247.400
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(159.324)	(13.349)	(233.500)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		155.136	153.887	153.200
	PROFIT BEFORE TAX (E-F) (G)		(314.460)	(167.236)	(386.700)
Less	TAX (H)		0.750	8.466	(20.900)
	PROFIT AFTER TAX (G-H) (I)		(313.710)	(158.770)	(365.800)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		182.461	357.028	722.900
	BALANCE CARRIED TO THE B/S		(132.549)	182.461	357.100
	EARNINGS IN FOREIGN CURRENCY		1097.000	686.500	547.100
	IMPORTS
		Raw Materials	7.348	40.123	3.700
		Dyes and Chemical	39.322	29.953	37.300
		Components and Spares Parts	78.613	57.450	54.700
		Capital Goods	1.210	12.785	0.000
	TOTAL IMPORTS		126.493	140.311	95.700
	Earnings Per Share (Rs.)		(7.80)	(3.95)	(9.09)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(10.88)	(7.35)	(20.55)
Net Profit Margin (PBT/Sales)	(%)	(11.36)	(8.03)	(21.20)
Return on Total Assets (PBT/Total Assets}	(%)	(9.88)	(4.97)	(10.56)
Return on Investment (ROI) (PBT/Networth)		(1.07)	(0.27)	(0.49)
Debt Equity Ratio (Total Liability/Networth)		10.31	4.77	3.67
Current Ratio (Current Asset/Current Liability)		4.54	11.17	12.00

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	No
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	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

OPERATIONS

The Directors wish to inform to that the Company achieved a gross turnover of Rs. 2768.700 Millions registering a growth of 33% over the previous year. The net sales increased in 2011 by 33% mainly due to increase in net realization of fabric by 18% and of garments by 12%. The exports increased by 60% to Rs 1103.600 Millions mainly of denim fabric where it increased by more than 120%.

The production of Denim Fabric achieved was 138.27 Lac meters during the period over the production levels of 143.22 Lacs meters during the previous year.

During the year the Company achieved a turnover of Rs. 539.100 Millions in garment unit as compared to Rs.467.200 Millions during the previous year. The company produced 13.98 lacs pcs of garments during the year as compared to 12.90 lacs garments during the previous year.

During the year Captive Power Plant (CPP) of 6MW capacity generated 365.07 lacs units of power against 335.25 lacs unit last year showing increased generation of 9% approx.

PROFITABILITY

During the year under review, the Company has earned a Profit before Financial Expenses and Depreciation, written offs and Taxes (PBDIT) for Rs. 155.700 Millions as against Rs 276.600 Millions during the previous year. The Company’s Net Loss after exceptional items and taxes stood at Rs. 315.000 Millions (Previous year loss Rs 174.500 Millions) during the year under review.

FUTURE OUTLOOK

The directors wish to inform that though the cotton prices remain volatile during last 2 qtr but expected to come down due to increased acreage of cotton crop in India, Pakistan, and USA. Considering the decline in cotton prices the company is expected to turn around as company is not carrying cotton inventory of higher prices. The continuous decline in cotton prices affected the booking of long orders in exports as customers are waiting for cotton to become stable. The domestic demand was sluggish in Ist qtr and is expected to pick in IInd qtr. The domestic demand for the denim is growing but capacity additions in the industry are also happening simultaneously. Export orders are also expected to resume in IInd qtr. Though last year company lost one major customers in garment division but could increase orders with another customer.

Keeping in view increased demand from existing customers the company will have to increase its garment production capacity. The company now has to focus on increasing the capacity utilization in denim fabric and increasing the garment capacity. Besides facing the volatility of cotton prices, the company has to face challenge of rising energy prices, uncertain government policies like cotton exports related, DEPB withdrawal etc.

CONTINGENT LIABILITIES NOT PROVIDED FOR:

a) Bank Guarantees and Letters of Credit outstanding is Rs 67.200 Millions (Previous year Rs. 68.700 Millions).

b) Export Bills discounted with banks against irrevocable letters of credit Rs.238.700 Millions (Previous year Rs. 99.200 Millions).

c) Guarantees given by the Company on behalf of subsidiary and step down subsidiary: Rs 325.400 Millions (outstanding balance Rs 118.800 Millions) (Previous year 323.300 Millions, Outstanding balance Rs. 176.100 Millions)

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	90173496
Corporate identity number of the company	U17219PB1993PLC013187
Name of the company	MALWA INDUSTRIES LTD
Address of the registered office or of the principal place of business in India of the company	230 Industrial Area A, Ludhiana-141003, Punjab, India
Type of charge	Book Debts Movable Property (not being pledge)
Particular of charge holder	Canara Bank, Bharat Nagar Chowk Branch, Ludhiana-141001, Punjab, India
Email	managercb2107@canarabank.com
Nature of description of the instrument creating or modifying the charge	Supplemental Joint Deed of Hypothecation dated 19th APRIL 2011 executed between Malwa Industries Limited and Canara Bank acting as the Lead bank of the Consortium for itself and other consortium members consisting of State Bank of India, State Bank of Patiala ,Standard Chartered Bank and IDBI Bank Limited
Date of instrument Creating the charge	19.04.2011
Amount secured by the charge	Rs.806.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Different rate of interest of banks under consortium for the facilities granted by bank as provided in the documents Supplemental Joint Deed of Hypothecation. Terms of Repayment Being working capital facilities, these are payable within one year. Margin Different rate of margin on banks under consortium for the facilities granted by them ranging from 10% to 25%. Extent and Operation of the charge 100%
Short particulars of the property charged	I) Primary security -1st charge on the current assets of the Company on pari passu basis amongst consortium members on working capital and Corporate loans II) 2nd charge on the current assets of the Company on pari passu basis amongst consortium members on FITL III) 2nd charge on the Fixed Assets incl Plant and Machinery (Present and Future) of the Company on pari passu basis amongst consortium members on FITL IV) Collateral -2nd charge on the fixed assets (Present and Future) of the company on pari- passu basis for working capital, corporate loans and FITL V) 2nd charge on the Fixed Assets (Present and Future) of the Company on pari passu basis amongst consortium members on FITL
Date of latest modification prior to the present modification	30.06.2009
Particulars of the present modification	Working Capital Reduced To Rs. 806.500 Millions (Rs.725.000 Millions As Fund based And Rs.81.500 Millions As Non Fund based) From Rs.926.500 Millions ,Which Was Last Modified On 30/05/2008.

FIXED ASSETS:

• Freehold Land
• Building
• Plant and Machinery
• Furniture and Fixtures
• Office Equipments
• Computer
• Vehicles
• Patents
• ERP

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.53.53
UK Pound	1	Rs.86.62
Euro	1	Rs.69.03

INFORMATION DETAILS

Report Prepared by :

SDA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	--
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		31

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.