MIRA INFORM REPORT

Report Date :

01.04.2013

IDENTIFICATION DETAILS

Name :	EASTERN SILK INDUSTRIES LIMITED
Registered Office :	19, R. N. Mukherjee Road, Kolkata – 700001, West Bengal, India
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	09.04.1946
Com. Reg. No.:	013554
Capital Investment / Paid-up Capital :	Rs. 297.905 Millions
CIN No.: [Company Identification No.]	L17226WB1946PLC013554
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Silk Yarn, Fabrics and Madups, Home Furnishing, Fashion Fabrics, Hand Looms Fabrics etc.
No. of Employees :	800 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (18)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having a Moderate track record. There appears drastic fall in its sales turnover. The company recorded continuous loss due to which reserves of the company is deteoriating liquidity position of the company is weak. The external borrowing seems to be increasing over a year. The company during the financial year has downsized the financial year has downsized its business by eliminating outsourcing in view of fall in export demand. However, business is active. Payments are reported to be slow. The company can be considered for business dealings on a safe and secured 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	CRISIL
Rating	Long Term Rating = D
Rating Explanation	This rating are in default or are expected to be in default soon.
Date	March 2013

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 :	Mr. B. K. Makharia
Designation :	Key Executive
Contact No.:	91-33-22430817
Date :	15.03.2013

LOCATIONS

Registered Office :	19, R. N. Mukherjee Road, Kolkata – 700001, West Bengal, India
Tel. No.:	91-33-22430817
Fax No.:	91-33-22482486
E-Mail :	cs@easternsilk.com csilk@vsnl.com
Website :	www.easternsilk.com
Area :	10000 Sq. ft.
Location :	Owned
Factory 1 :	411, Telugarahalli Road, Anekal, Bangalore - 562106, Karnataka, India
Factory 2 :	Kammansandra Agrahara Kasaba Hobli Anekal, Bangalore - 560106, Karnataka, India
Factory 3 :	11A, 2^nd Cross Industrial Area, Nanjangud - 571301, Karnataka, India
Factory 4:	Falta Special Economic Zone, 24, Parganas (South), West Bengal, India
Bangalore office :	3, Koramangla Industrial Layout, Koramangala, Bangalore-560095, Karnataka, India
Tel. No.:	91-80-5560039/ 5566553
Fax No.:	91-80-5531808/ 6194
E-Mail :	bangalore@easternsilk.com

DIRECTORS

As on : 31.03.2012

Name :	Mr. S. S. Shah
Designation :	Chairman and managing Director
Address :	55, Sarat Bose Road, Kolkata-700025, West Bengal, India
Date of Birth/Age :	07.11.1935
Date of Appointment :	01.09.1952
Name :	Mr. Sudeep Shah
Designation :	Executive Director
Name :	Mr. G D Hamathka
Designation :	Director
Name :	Mr. H.S. Gopala
Designation :	Director
Name :	Mr. R S Rungta
Designation :	Director
Date of Birth/Age :	78 Years
Qualification:	B.com
Date of Appointment :	19.07.1986

KEY EXECUTIVES

Name :	Mr. K T Seth
Designation :	Compliance Officer/ Company Secreatry
E mail :	kts@easternsilk.com
Name :	Mr. B. K. Makharia
Designation :	Key Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2012

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	17275615	21.88
Bodies Corporate	23212736	29.40
Sub Total	40488351	51.28
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	40488351	51.28
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	95415	0.12
Financial Institutions / Banks	1750	0.00
Insurance Companies	4294795	5.44
Foreign Institutional Investors	10000	0.01
Sub Total	4401960	5.58
(2) Non-Institutions
Bodies Corporate	9125131	11.56
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	22512068	28.51
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1993011	2.52
Any Others (Specify)	432099	0.55
Foreign Corporate Bodies	432099	0.55
Sub Total	34062309	43.14
Total Public shareholding (B)	38464269	48.72
Total (A)+(B)	78952620	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)	78952620	0.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Silk Yarn, Fabrics and Madups, Home Furnishing, Fashion Fabrics, Hand Looms Fabrics etc.
Exports :
Products :	· Fabrics · Garments
Countries :	· Australia · USA · UK
Terms :
Selling :	D. A, D. P and Advance
Purchasing :	D. A, D. P and Advance

GENERAL INFORMATION

Customers :

· Wholesalers

· Retailers

· End Users

· OEM’s

No. of Employees :

800 (Approximately)

Bankers :

· Allahbad Bank

· Canara Bank

· State Bank of India

· State Bank of Mysore

· State Bank of Hyderabad

· The Federal Bank Limited

· The Bank of Rajasthan Limited

· UCO Bank

· Union Bank of India

· Yes Bank Limited

· ICICI Bank

Facilities :

Secured Loans	31.03.2012 Rs in Millions	31.03.2011 Rs. In Millions
Term Loan	534.148	534.148
Working Capital Term Loan	2942.938	0.000
Funded Interest Term Loan	339.349	0.000
Vehicle Loan	0.068	0.874
Loans repayable on demand
Packing Credit-cum-Cash Credit Loan and Overdrafts	0.000	1967.374
Working Capital as per approval of CDR package (Cash Credit/Packing Credit/Foreign Bills Payable/Letter of Credit)	541.892	0.000
Total	4358.395	2502.396
Nature of Security Term Loan · Pari passu first charge over entire movable fixed assets excluding assets charged to other lenders. · Pari passu second charge over the company’s entire current assets excluding assets charged to other lenders. · Equitable Mortgage of the Company’s Property No. 84 in 54 No. 39 measuring to an extent of 4 Acres 34 guntas situated at Kammasandra, Agrahara, Village- Kasaba Hobli, Anekal Taluk, Bangalore Dist together with all buildings and structures thereon and all plant and machinery attached to the earth; both present and future. · Personal guarantee of Shri S. S. Shah and Sri Sundeep Shah. Working Capital Term Loan · Secured against first pari-passu charge on all Assets,excluding assets exclusively charged to respective lenders. · Equitable Mortgage of the Company’s Property at Plot No.11A of Nanjangud Industrial area situated in Sy No.184,185 and 169 of Kallahally Village, Chikkaiahna, Chatra, Hobli, Nanjangud Taluk, Mysore District containing by admeasurements 58686.00 sq. mtrs. · Second charge on the Company’s property at 411, Telugarahalli Road ,Anekal ,Bangalore – 562106 · Second charge on the Company’s property at Kammansandra Agrahara Kasaba Hobli,Anekal, Bangalore - 562106. · Personal guarantee of Shri S. S. Shah and Sri Sundeep Shah. Vehicle Loan Secured against hypothecation of Vehicles. Working Capital · Hypothecation of entire current assets including book debts of the company on first charge basis ranking pari passu with WC Consortium members without any preference or priority of one over the other. · Hypothecation of realizable non-current assets of the company on first charge basis ranking pari passu. · Hypothecation of all tangible, movable plant and machineries, equipment, etc. located at the Company’s unit at Anekal Unit I and II on second charge basis ranking pari passu. · Exclusive pari passu charge on specific plant and machinery installed at Anekal unit, Karnataka created out of sale proceeds of the Company’s Noida unit. · Personal Guarantee of Shri S. S. Shah and Shri Sundeep Shah

Banking Relations :
Auditors :
Name :	B. K. Shroff and Company Chartered Accountant
Address :	23A, Netaji Subhash Road, Kolkata - 700001, West Bengal, India
Associates:	· Ethics Commercials Limited · Lucky Goldstar Company Limited · P.K. Textiles Limited · Tarun Fabrics Limited · Gemini Overseas Limited

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
150000000	Equity Shares	Rs. 2/- each	Rs. 300.000 Millions
2000000	8% Redeemable Cumulative Preference Shares	Rs. 100/- each	Rs. 200.000 Millions
	Total		Rs. 500.000 Millions

Issued :

No. of Shares	Type	Value	Amount
79110120	Equity Shares	Rs. 2/- each	Rs. 158.220 Millions
1400000	8% Redeemable Cumulative Preference Shares	Rs. 100/- each	Rs. 140.000 Millions
	Total		Rs. 298.220 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
78952620	Equity Shares	Rs. 2/- each	Rs. 157.905 Millions
1400000	8% Redeemable Cumulative Preference Shares	Rs. 100/- each	Rs. 140.000 Millions
	Total		Rs. 297.905 Millions

a) There is no change/movement in number of shares outstanding at the beginning and at the end of the reporting period.

b) The Company has two classes of issued shares i.e. Equity Shares of Rs. 2/- each and Redeemable Cumulative Preference Shares of Rs. 100/- each. Each Equity Share is entitled to one vote per share and equal right for dividend after payment of preference dividend to preference share holders. The dividend proposed by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the ordinary share holders are eligible to receive the remaining assets of the Company after payment of all preferential amounts and to preferential shareholders, in proportion to their shareholding.

c) The Company does not have any Holding Company

d) Details of shareholders holding more than 5% shares in the Company.

Equity Shares of Rs 2/- each fully paid

Particular	Number of Shares	% of holding
Shri Shyam Sundar Shah	5289205	6.70
Smt. G.D. Shah	5324170	6.74
Gemini Overseas Limited	7667580	9.71
Tarun Fabrics Limited	9575500	12.13
ILFS Trust Company Limited A/c-ILFS P. Ed. Trust	3970793	5.03

e) No Equity Shares have been reserved for issue under options and contracts/commitments for the sale of shares/disinvestment as at the Balance Sheet date.

f) No shares have been allotted or has been bought back by the Company during the 5 years preceeding the date as at which Balance Sheet is prepared.

g) No securities convertible into Equity/Preference shares issued by the Company during the year.

h) No calls are unpaid by any Director or Officer of the Company during the year.

i) During 1995-96 the company offered 11813725 Equity Shares of Rs. 2/- each to the existing Shareholders in the ratio of 1 share for every 2 shares held, at a premium of Rs. 6/- per share as per letter of offer dated December 21, 1995. Out of the above shares, allotment of 6.000 Equity Shares is kept in abeyance under Court Order.

j) 600000 Redeemable Cumulative Preference Shares were allotted by the Company on 21.01.2004, 200000 Redeemable Cumulative Preference Shares were allotted by erstwhile Eastern Jingying Limited on 09.02.2004 and 600000 Redeemable Cumulative Preference Shares were allotted by erstwhile Sstella Silks Limited on 26.03.2005. All the Preference Shares are carrying dividend at the rate of 8%. The date of redemption of all the preference shares which were due for redemption on 25th March, 2010 and 1st April, 2010 have now been extended upto 1st April, 2020 with the consent of all the preference shareholders. Hence, the earliest date of redemption is 1st April, 2020.However as per C.D.R. approval the redemption of the preference shares can only be made after the entire dues of Banks and Institutions are repaid.

k) The number of shares, face value and the premium has been reworked on sub division of shares from Rs. 10/-each to Rs. 2/- each.

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		297.905	297.905	297.905
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2225.328	3156.144	3763.852
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2523.233	3454.049	4061.757
LOAN FUNDS
1] Secured Loans		4358.395	2502.396	1711.807
2] Unsecured Loans		76.679	100.923	2.473
TOTAL BORROWING		4435.074	2603.319	1714.280
DEFERRED TAX LIABILITIES		0.000	1.483	109.922
TOTAL		6958.307	6058.851	5885.959
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1886.984	2056.823	1652.373
Capital work-in-progress		19.987	55.631	494.996
INVESTMENT		0.039	0.039	20.539
DEFERREX TAX ASSETS		237.995	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1788.616	2195.173	2515.731
	Sundry Debtors	2797.113	1478.457	774.431
	Cash & Bank Balances	244.327	276.040	281.795
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	69.456	697.251	1278.747
Total Current Assets		4899.512	4646.921	4850.704
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	28.945	546.944	726.651
	Other Current Liabilities	47.534	109.608	336.421
	Provisions	9.731	44.011	69.581
Total Current Liabilities		86.210	700.563	1132.653
Net Current Assets		4813.302	3946.358	3718.051
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		6958.307	6058.851	5885.959

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011
	SALES
		Income	944.012	6369.822
		Other Income	400.478	200.131
		TOTAL (A)	1344.490	6569.953
Less	EXPENSES
		Cost of Materials Consumed	191.099	2220.854
		Purchases of stock in trade	846.276	3432.762
		Changes in inventories of finished , work in progress and stock in trade	(490.485)	317.288
		Employee benefit expenses	22.529	70.337
		Other Expenses	262.086	654.729
		Exceptional Items	1047.833	0.000
		TOTAL (B)	1879.338	6695.970
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(534.848)	(126.017)
Less	FINANCIAL EXPENSES (D)		419.712	315.025
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(954.560)	(441.042)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		212.345	246.722
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(1166.905)	(687.764)
Less	TAX (I)		(250.862)	(108.402)
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)		(916.043)	(579.362)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1114.179	1693.541
	BALANCE CARRIED TO THE B/S		198.136	1114.179
	EARNINGS IN FOREIGN CURRENCY
		Export of goods calculated on F.O.B. (accrual basis)	619.802	4162.738
	TOTAL EARNINGS		619.802	4162.738
	IMPORTS
		Yarn	547.285	1560.453
		Fabrics	22.878	20.678
		Plant and Machinery	38.418	108.570
	TOTAL IMPORTS		608.581	1689.701
	Earnings Per Share (Rs.)		(11.60)	(7.34)

	PARTICULARS		31.03.2010
	SALES
		Income	5439.309
		Other Income	120.006
		TOTAL (A)	5559.315
Less	EXPENSES
		Purchases	1967.678
		Raw Material Consumed	1984.588
		Manufacturing, Selling and Other Expenses	1142.910
		Increase/ Decrease in Stock	[10.264]
		TOTAL (B)	5084.912
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		474.403
Less	FINANCIAL EXPENSES (D)		252.502
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		221.901
Less/ Add	DEPRECIATION/ AMORTISATION (F)		153.358
	PROFIT BEFORE TAX (E-F) (G)		68.543
Less	TAX (I)		11.166
	PROFIT AFTER TAX (G-I) (J)		57.377
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1670.272
Less	APPROPRIATIONS
		Transfer to General Reserve	10.000
		On Equity Shares	9.474
		On Preference Shares	11.200
		Corporate Dividend Tax	3.434
	BALANCE CARRIED TO THE B/S		1693.541
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	4190.020
	TOTAL EARNINGS		4190.020
	IMPORTS
		Yarn	1405.583
		Fabrics	30.924
		Plant and Machinery	285.263
	TOTAL IMPORTS		1721.770
	Earnings Per Share (Rs.)		0.56

Expected Sales (2012-13) : Rs. 650.000 Millions (Due to export is very low, sales affected)

The above information has been parted by Mr. B. K. Makharia

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012
Audited / UnAudited	UnAudited	UnAudited	UnAudited
Net Sales	145.600	17.580	15.020
Total Expenditure	160.300	16.360	15.550
PBIDT (Excl OI)	(14.700)	1.210	(0.530)
Other Income	11.600	0.750	0.630
Operating Profit	(03.100)	1.960	0.110
Interest	109.600	11.610	11.930
Exceptional Items	0.000	0.000	(1.440)
PBDT	(112.700)	(9.650)	(13.270)
Depreciation	44.100	4.470	4.520
Profit Before Tax	(156.800)	(14.120)	(17.790)
Tax	0.000	0.000	0.000
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	(156.800)	(14.120)	(17.790)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(68.13)	(8.82)	1.03
Net Profit Margin (PBT/Sales)	(%)	(123.61)	(10.79)	1.26
Return on Total Assets (PBT/Total Assets}	(%)	(17.19)	(10.26)	1.05
Return on Investment (ROI) (PBT/Networth)		(0.46)	(0.20)	0.02
Debt Equity Ratio (Total Debt /Networth)		1.75	0.75	0.42
Current Ratio (Current Asset/Current Liability)		56.83	6.63	4.28

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	Yes
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%	Yes
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
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	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

PERFORMANCE REVIEW

As a consequence of downsizing of the business as decided last year, the sales and processing income during the year was 895.229 Millions which is not comparable with that of the last year. The net loss for the year was 916.043 Millions.

The proposal for restructuring of debts under CDR mechanism was approved by CDR Empowered Group at their meeting held on 20.12.2011. The conditions as put forth in the Letter of Approval of CDR have been complied with by the Management and a sum of 73.400 Millions has been brought in by the Promoters and infused in the Company. Most of the bankers have restructured their loans.

FUTURE OUTLOOK

As planned last year, the Company has done away with outsourcing business and is concentrating only on the in-house production facilities. Anticipated demand recovery in the overseas markets should act as a conduit to the Company's path of recovery. Supplies in the domestic market have also commenced during the year, and it is expected to grow in the coming years.

MANAGEMENT’S DISCUSSION AND ANALYSIS

Overall Review, Industry Structure and Developments

Demand recession in global markets, steep increase in raw material prices and high interest cost continued to plague the industry in the last financial year. The equilibrium in demand supply will take some time. Till then, pressure on profit margins may continue.

The strong signal of revival of economy in USA and UK should help the textile demand.

Opportunities and Threats

With the revival of economy in the major overseas markets the demand for silk products is expected to pick up. However, increased cost of raw materials and high interest cost are detrimental to the augment of export of silk goods.

Outlook

The Company's initiatives to streamline in-house production facilities, reduce overheads and add value added products would help in improving profit margins.

Internal Control System

The Company has adequate system of internal controls to ensure that all assets are safeguarded and protected against loss and that all transactions are authorised, recorded and reported correctly. The systems are designed to support the reliability of the financial and other for preparing financial statements and other data.

UNSECURED LOANS

Particular	31.03.2012 Rs in Millions	31.03.2011 Rs. In Millions
Short Term Loan
Loans From Related Parties (Rs 36.700 Millions by Smt Ginia Devi Shah) (Rs 36.700Millions by Shri Shyam Sundar Shah-Chairman and M.D.)	73.400	0.000
Loans From Others	2.473	2.473
Loans Repayable on demand	0.000	96.605
Vehicles Loan	0.806	1.845
Total	76.679	100.923

Loan from Related Parties

Promoters Contribution as unsecured loan (free of interest) to remain subordinate to the Banks Loan

CONTINGENT LIABILITIES:

(Rs in Millions)

Particular	31.03.2012	31.03.2011
Letters of Credit	0.000	557.926
Guarantees given by the Bankers	13.252	13.252
Bills receivable discounted with Bankers	0.000	1348.771
Excise, Sales tax, Custom Duty, ESIC and Other Claims	18.444	18.444
Dividend on Cumulative Preference Shares (Including tax)	26.034	13.017
Letters of Credit	65.000	65.000

FIXED ASSETS:

· Land Leasehold

· Freehold

· Building

· Plant and Machinery

· Electric Installations

· Office Equipment

· Furniture Vehicles

STATEMENT OF UNAUDITED RESULTS FOR THE QUARTER ENDED 31st DECEMBER, 2012

Rs in Millions

Sl. No.	Particulars	Quarter Ended		Nine Months Ended
		31.12.2012	30.09.2012	31.12.2012
			(Unaudited)	(Unaudited)
1	Income from operations
	(a) Net Sales / Income from Operation	143.704	166.666	454.442
	(b) Other operating income (Net)	6.495	9.081	17.117
	Total income from operations (net)	150.199	175.747	471.559
2	Expenses
(a)	Cost of materials consumed	16.771	30.180	84.086
(b)	Purchases of stock-in-trade	35.298	23.855	127.703
(c)	Changes in inventories of Finished Goods, Work-in- Progress and Stock-in-Trade	31.452	48.335	74.374
(d)	Purchase of semi finished goods	-	-	-
(e)	Sales return for previous year	-	-	-
(f)	Employee benefit expenses	8.542	7.223	21.904
(g)	Depreciation	45.211	44.679	134.002
(h)	Other Expenses	63.376	54.030	171.318
	Total Expenses	200.650	208.302	613.387
3	Profit/(Loss) from operations before other income, finance cost and exceptional items (1-2)	(50.451)	(32.555)	(141.828)
4	Other income	6.317	7.455	25.399
5	Profit/(Loss) from ordinary activities before finance cost and exceptional items (3+4)	(44.134)	(25.100)	(116.429)
6	Finance cost	119.342	116.097	345.000
7	Profit/(Loss) from ordinary activities after finance cost but before exceptional items (5-6)	(163.476)	(141.197)	(461.429)
8	Exceptional Items	-	-	-
(a)	Depletion of stock	-	-	-
(b)	Ongoing Labour Settlement (Nanjangud Unit)	(14.441)	-	(14.441)
9	Profit(+)/Loss(-) from Ordinary Activities before tax (7-8)	(177.917)	(141.197)	(475.870)
10	Tax expenses	-	-	-
(a)	Provision for taxation - Current	-	-	-
(b)	Income-tax for earlier years	-	-	-
(c)	Provision for tax - Deferred	-	-	-
11	Profit / (Loss) from ordinary activities after tax (9 - 10)	(177.917)	(141.197)	(475.870)
12	Extraordinary Items	-	-	-
13	Net profit (+)/Loss (-) for the period	(177.917)	(141.197)	(475.870)
14	Paid-up Equity share capital (face value of each share 2/-)	157.905	157.905	157.905
15	Reserve	-	-	-
16.i	Earnings per share (EPS)
	(a) Basic	(2.25)	(1.79)	(6.03)
	(b) Diluted	(2.25)	(1.79)	(6.03)
Part II	Selected Information
A	PARTICULARS OF SHAREHOLDING
1	Public Shareholding
	a) No. of Shares	38464269	38464269	38464269
	b) Percentage of Shareholding	48.72	48.72	48.72
2	Promoters and promoter group shareholding
	a) Pledged / Encumbered
	- Number of Shares	40488351	40488351	40488351
	- Percentage of shares (as a % of total shareholding of promoter and promoter )	100	100	100
	- Percentage of shares (as a % of total share capital of the company)	51.28	51.28	51.28
	b) Non - encumbered
	- Number of Shares	Nil	Nil	Nil
	- Percentage of shares (as a % of total shareholding of promoter and promoter group)	Nil	Nil	Nil
B	Particulars	Beginning	Received	s
	INVESTOR COMPLAINTS
	for the quarter ended 31.12.2012	NIL	1	1

NOTES:

1. The operations of the company relate to only one primary segment viz. Textiles

2. The Promoters’ shareholding remains encumbered in favour of Allahabad bank, Monitoring Institution under CDR Scheme.

3. The statutory auditors have carried out a limited review of the above financial results.

4. The above mentioned financial results were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 8th February, 2013.

5. The Spun Silk Yarn unit of the Company at Nanjangud was closed w.e.f. 08.04.2010. After negotiating with the Trade Unions the settlements of the dues for the labour have been finalized and the payments which were made in this quarter have been treated under Exceptional Item.

6. Previous period/year’s figures have been regrouped/rearranged wherever necessary to confirm to current period presentation.

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. 54.39
UK Pound	1	Rs. 82.32
Euro	1	Rs. 69.54

INFORMATION DETAILS

Information Gathered by :	NYN
Report Prepared by :	UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		18

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.