MIRA INFORM REPORT

Report Date :

23.01.2013

IDENTIFICATION DETAILS

Name :	BIRLA COTSYN (INDIA) LIMITED
Registered Office :	Dalamal House, 1^st Floor, J.B. Marg, Nariman Point, Mumbai-400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	24.09.1941
Com. Reg. No.:	11-003429
Capital Investment / Paid-up Capital :	Rs.2668.635 millions
CIN No.: [Company Identification No.]	L17110MH1941PLC003429
TAN No.: [Tax Deduction & Collection Account No.]	NSKJ00026F / MUMB11504D
PAN No.: [Permanent Account No.]	AAACJ1362K
Legal Form :	A Public Limited Liability Company. The company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer and Exporter of Synthetic blended ring spun yarn.
No. of Employees :	1325 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 12600000
Status :	Moderate
Payment Behaviour :	Slow and Delayed
Litigation :	Clear
Comments :	Subject is a well-established company having moderate track record. The financial position of the company appears to be under pressure. Even though the company has achieved better growth in the income from operation, there appears huge dip in the profitability of the company during 2012. However, trade relations are reported as fair. Business is active. Payment terms are reported as slow but correct. The company can be considered for business dealings with great caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

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

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	D (Long Term Bank Facility)
Rating Explanation	Default
Date	23.10.2012

Rating Agency Name	CARE
Rating	D (Short Term Bank Facility)
Rating Explanation	Default
Date	23.10.2012

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

LOCATIONS

Registered Office :	Dalamal House, 1^st Floor, J.B. Marg, Nariman Point, Mumbai-400021, Maharashtra, India
Tel. No.:	91-22-22821173/ 74/ 66153392 / 66168400
Fax No.:	91-22-22047835
E-Mail :	narayanan@yashbirlagroup.com lovelina@yashbirlagroup.com monica@yashbirlagroup.com
Website :	http://www.birlacotsyn.com
Area :	1500 sq. ft.
Location :	Owned
Corporate Office :	The Regency, Office No. 11 and 12, 1^st Floor, National Library Road, Near Nandi Cinema, Bandra (West), Mumbai-400050, Maharashtra, India
Tel. No.:	91-22-26405866/ 0067/ 66719956
Fax No.:	91-22-26400068
Plant Locations :	v C-6/1,MIDC Area, Malkapur – 443 101, District Buldhana, Maharashtra, India Tel. No.: 91-7267-262674/262675 v A/82, M.I.D.C., Industrial Area, Khamagaon-444303, District Buldhana, Maharashtra, India Tel. No.: 91-7263-277116/ 277122 Fax No.: 91-7263-277123 E-mail: vsyntex@yahoo.com v Shree House, Shegaon Road, Khamgaon, Dsitrict Buldhana, Maharashtra, India Tel. No.: 91-7263-254774 v Post Box No. 1, Gatanji, District Yavatmal, Maharashtra, India Tel. No.: 91-7230-277150 v Near Cotton Market, Parola Road, Dhule-424004, Maharashtra, India Tel. No.: 91-7263-254774
Overseas office :	1^st Floor, 87-89 Baker Street, London- WIU 6RJ
Tel. No.:	00-44-20-74868270
E-Mail :	venkat@implexltd.com

DIRECTORS

As on 21.09.2012

Name :

Ms. Priya Bhushan Bhardwaj

Designation :

Director

Address :

Regency Villa, Outer Circle, Regents Park, London-NW14HB, United Kindom

Date of Birth/Age :

11.09.1937

Date of Appointment :

25.01.2007

DIN No.:

00136076

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	L27100MH1984PLC034003	SUNFLAG IRON AND STEEL COMPANY LTD	Director	12/09/1984	12/09/1984	-	Active	NO
2	U92132HR1973PLC007013	HARYANA TELEVISION LIMITED	Managing director	02/04/2007	29/11/1992	-	Active	NO
3	U17111DL2006PTC146156	DIVIT TEXTILES PRIVATE LIMITED	Director	24/09/2012	20/05/2006	-	Active	NO
4	L17110MH1941PLC003429	BIRLA COTSYN (INDIA) LIMITED	Director	03/08/2007	25/01/2007	-	Active	NO
5	U17299MH2006PTC165970	SPINWEAVE TEXTILES PRIVATE LIMITED	Director	26/09/2012	28/04/2008	-	Active	NO

Name :

Mr. Yashovardhan Ashok Birla

Designation :

Co-Chairman

Address :

Birla House, 21, Mount Pleasant Road, Mumbai-400006, Maharashtra, India

Date of Birth/Age :

29.09.1967

Date of Appointment :

16.05.1995

DIN No.:

00005804

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	U65990MH1962PTC014209	ASIAN DISTRIBUTORS PRIVATE LIMITED	Director	26/03/1987	26/03/1987	-	Active	NO
2	L31101MH1984PLC032773	BIRLA POWER SOLUTIONS LIMITED	Director	05/06/1987	05/06/1987	-	Active	NO
3	L29220MH1986PLC041214	BIRLA PRECISION TECHNOLOGIES LIMITED	Director	19/03/1990	19/03/1990	-	Active	NO
4	L31300KA1987PLC013543	3M INDIA LIMITED	Director	23/03/1990	23/03/1990	18/06/2007	Active	NO
5	L99999MH1965PLC013198	BIRLA MACHINING AND TOOLINGS LIMITED	Director	30/03/1990	30/03/1990	-	Amalgamated	NO
6	L29220MH1960PLC011773	ZENITH BIRLA (INDIA) LIMITED	Director	30/03/1990	30/03/1990	-	Active	NO
7	U67120MH1989PTC054227	SHEARSON INVESTMENTS AND TRADING COMPANY PRIVATE LIMITED	Director	31/10/1990	31/10/1990	-	Active	NO
8	U51109WB1918PTC003010	BIRLA BROTHERS PVT LTD	Director	27/12/1991	27/12/1991	-	Active	NO
9	U63040MH1976PLC019250	BIRLA VIKING TRAVELS LIMITED	Director	28/01/1992	28/01/1992	-	Active	NO
10	L17110MH1941PLC003429	BIRLA COTSYN (INDIA) LIMITED	Director	16/05/1995	16/05/1995	-	Active	NO
11	U99999MH1923PTC001084	BIRLA BOMBAY PRIVATE LIMITED	Director	25/05/1995	25/05/1995	-	Active	NO
12	U26942AP1996PLC025831	RENUKA CEMENT LIMITED	Managing director	29/11/1996	29/11/1996	15/01/2011	Active	NO
13	U45200MH1932PLC001850	LAKSHMI PROPERTIES LTD	Director	18/07/2006	18/07/2006	-	Active	NO
14	U85120MH2006PTC161718	BIRLA WELLNESS AND HEALTHCARE PRIVATE LIMITED	Director	20/07/2007	20/07/2007	-	Active	NO
15	U24100MH2008PLC177694	BIRLA RESEARCH & LIFESCIENCES LIMITED	Director	10/01/2008	10/01/2008	-	Active	NO
16	L85100MH2008PLC184689	BIRLA PACIFIC MEDSPA LIMITED	Director	15/07/2008	15/07/2008	-	Active	NO
17	U51310MH2008PLC185850	BIRLA INTEGRATED TEXTILE PARK LIMITED	Director	14/08/2008	14/08/2008	-	Active	NO
18	U85110MH2008PTC187084	ASHOK BIRLA APOLLO HOSPITAL PRIVATE LIMITED	Director	25/09/2008	25/09/2008	-	Active	NO
19	U74999MH2008PLC187077	BIRLA SURYA LIMITED	Director	25/09/2008	25/09/2008	-	Active	NO
20	U80301MH2008PLC188043	BIRLA EDUTECH LIMITED	Director	07/11/2008	07/11/2008	-	Active	NO
21	L99999MH1986PLC040604	MELSTAR INFORMATION TECHNOLOGIES LIMITED	Director	18/09/2009	22/04/2009	07/11/2012	Active	NO
22	L74999MH1992PLC066910	BIRLA SHLOKA EDUTECH LIMITED	Director	26/09/2009	25/05/2009	-	Active	NO
23	U80900MH2009PTC196032	BIRLA AYURVEDA PRIVATE LIMITED	Director	24/09/2009	24/09/2009	-	Active	NO
24	U40101MH2010PLC201054	BIRLA URJA LIMITED	Director	16/09/2011	09/06/2010	-	Active	NO

Name :

Mr. Mohandas Shenoy Adige

Designation :

Director

Address :

2, Pearl, Plot-163, Sector 28, Navi Mumbai-400073, Maharashtra, India

Date of Birth/Age :

07.01.1944

Qualification :

B.Sc (Met. Engg) graduate from Banaras Hindu University, M. Met from Sheffield University, UK and Diploma Holder in Operations and Financial management from JBIMS, Bombay University

Date of Appointment :

03.08.2007

DIN No.:

00280925

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	L40100MH1996PLC104361	NAGPUR POWER AND INDUSTRIES LIMITED	Director	29/06/2004	29/06/2004	-	Active	NO
2	L65910MH1987PLC044887	ARTEFACT PROJECTS LIMITED	Director	30/01/2010	28/07/2006	-	Active	NO
3	L17110MH1941PLC003429	BIRLA COTSYN (INDIA) LIMITED	Director	24/10/2008	03/08/2007	-	Active	NO
4	L29220MH1986PLC041214	BIRLA PRECISION TECHNOLOGIES LIMITED	Director	18/09/2008	02/05/2008	-	Active	NO
5	U27106MH2008PTC188221	FAIZ SUPER ALLOYS PRIVATE LIMITED	Director	20/03/2009	20/03/2009	-	Active	NO
6	L74999MH1992PLC066910	BIRLA SHLOKA EDUTECH LIMITED	Director	26/09/2009	25/05/2009	-	Active	NO
7	L99999MH1986PLC040604	MELSTAR INFORMATION TECHNOLOGIES LIMITED	Director	18/09/2009	23/06/2009	-	Active	NO
8	U40101MH2010PLC201110	BIRLA ENERGY INFRA LIMITED	Director	22/03/2010	22/03/2010	-	Active	NO
9	L85100MH2008PLC184689	BIRLA PACIFIC MEDSPA LIMITED	Director	22/06/2010	08/06/2010	-	Active	NO
10	U32109MH1960PTC011827	THE MOTWANE MANUFACTURING COMPANY PRIVATE LIMITED	Nominee director	13/05/2011	13/05/2011	-	Active	NO
11	L27100MH2004PLC146283	FACOR STEELS LIMITED	Director	24/09/2012	07/11/2011	-	Active	NO
12	U80301MH2008PLC188043	BIRLA EDUTECH LIMITED	Director	05/11/2012	05/11/2012	-	Active	NO

Name :

Mr. Mohan Motiram Jayakar

Designation :

Director

Address :

11-12, Makani Manor, Peddeer Road, Mumbai-400026, Maharashtra, India

Date of Birth/Age :

08.10.1951

Date of Appointment :

06.12.2007

DIN No.:

00925962

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	U74940MH1992PLC067864	PHOTOQUIP (INDIA) LTD	Director	24/11/1993	24/11/1993	-	Active	NO
2	L17231MH1993PLC071975	CENTERAC TECHNOLOGIES LIMITED	Director	21/12/2011	25/02/1994	-	Active	NO
3	U63040MH1994PTC077887	CHIRAG TRAVELS PRIVATE LIMITED	Director	18/08/1994	18/08/1994	15/02/2010	Active	NO
4	L29200MH1978PLC020434	EVEREST KANTO CYLINDER LIMITED	Director	05/07/2005	05/07/2005	-	Active	NO
5	U51909MH2004PTC144475	DIVRAJ TRADING PRIVATE LIMITED	Director	05/09/2005	05/09/2005	-	Active	NO
6	U63090MH1985PLC035059	SATYA GIRI SHIPPING COMPANY LIMITED	Director	29/09/2007	01/12/2006	-	Active	NO
7	U72300MH2007PTC170537	EZ-COMM WIRELESS INDIA PRIVATE LIMITED	Director	03/05/2007	03/05/2007	30/07/2008	Amalgamated	NO
8	L24221KA1969PLC001799	MYSORE PETRO CHEMICALS LIMITED	Director	21/09/2007	16/06/2007	-	Active	NO
9	L17110MH1941PLC003429	BIRLA COTSYN (INDIA) LIMITED	Director	24/10/2008	06/12/2007	-	Active	NO
10	U51909MH2007PTC169136	MACROCOSM INDUSTRIES PRIVATE LIMITED	Additional director	02/06/2008	02/06/2008	05/06/2009	Active	NO
11	L17110MH1935PLC002241	SHREE RAM URBAN INFRASTRUCTURE LIMITED	Director	24/06/2009	18/03/2009	-	Active	NO
12	U45202MH2008PTC187183	MACROCOSM INFRASTRUCTURE AND POWER PRIVATE LIMITED	Director	05/06/2009	05/06/2009	-	Active	NO
13	U74990MH2008PTC188995	VERICOM GLOBAL PRIVATE LIMITED	Director	15/09/2009	15/09/2009	-	Active	YES
14	L92411MH2003PLC140134	TALWALKARS BETTER VALUE FITNESS LIMITED	Director	23/09/2010	09/10/2009	-	Active	NO

Name :

Mr. Upkar Singh Kohli

Designation :

Director

Address :

Flat No. 202, Chnar Building, 21^st TPS Road, Bandra (West), Mumbai-400050, Maharashtra, India

Date of Birth/Age :

18.08.1947

Qualification :

Bachelor of Engineering (Mechanical) from Thapar Engineering College, Patiala, India, C.A.I.I.B (Certified Associate Indian Institute of Bankers) and Certified Examination of Industrial Finance.

Date of Appointment :

10.08.2010

DIN No.:

02528045

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	U74900DL2007PLC167329	UV ASSET RECONSTRUCTION COMPANY LIMITED	Director	22/08/2009	07/02/2009	-	Active	NO
2	L31101MH1984PLC032773	BIRLA POWER SOLUTIONS LIMITED	Director	30/09/2010	28/07/2009	-	Active	NO
3	L27105MP1984PLC002521	STI INDIA LIMITED	Nominee director	26/05/2010	26/05/2010	18/08/2012	Active	NO
4	U01110MH1980PLC022710	C AND M FARMING LIMITED	Nominee director	09/07/2010	09/07/2010	-	Active	YES
5	U74999MH2008PLC187077	BIRLA SURYA LIMITED	Director	31/03/2011	06/08/2010	-	Active	NO
6	L17110MH1941PLC003429	BIRLA COTSYN (INDIA) LIMITED	Director	20/09/2010	10/08/2010	-	Active	NO
7	U65923MH2009PTC198198	Union KBC Trustee Company Private Limited	Director	25/05/2011	03/09/2010	-	Active	NO
8	L85100MH2008PLC184689	BIRLA PACIFIC MEDSPA LIMITED	Director	13/10/2011	23/11/2010	-	Active	NO
9	L24110AP1993PLC016112	AVON ORGANICS LTD	Director	29/07/2011	22/01/2011	-	Active	NO
10	L65990MH1985PLC037697	WEIZMANN FOREX LIMITED	Director	04/03/2011	04/03/2011	-	Active	NO
11	L31101MH2007PLC168823	KARMA ENERGY LIMITED	Director	26/09/2012	09/11/2011	-	Active	NO

Name :

Mr. Vinod Kumar Kapur

Designation :

Director

Date of Birth/Age :

18.07.1949

Qualification :

Chartered Accountant from The Institute of Chartered Accountants of India (ICAI), Company Secretary from the Institute of Company Secretaries of India (ICSI) and B.Com (Hons) from Delhi University.

Date of Appointment :

13.08.2012

KEY EXECUTIVES

Name :	Mr. Shrikant Chari
Designation :	Chief Financial Officer
Name :	Ms. Monica Gandhi
Designation :	Company Secretary and Compliance Officer
Address :	1101, Gambs Tower, Four Bungalow Road, Andheri (East), Mumbai – 400053, Maharashtra, India
Date of Birth/Age :	23.08.1979
Date of Appointment :	10.08.2011

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2012

Names of Shareholders	No. of Shares	Percentage
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	342257944	17.00
Any Others (Specify)	3910320	0.19
Trusts	2537280	0.13
Directors/Promoters & their Relatives & Friends	1373040	0.07
Sub Total	346168264	17.20
(2) Foreign
Bodies Corporate	238101240	11.83
Sub Total	238101240	11.83
Total shareholding of Promoter and Promoter Group (A)	584269504	29.03
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	4	0.00
Central Government / State Government(s)	3000	0.00
Foreign Institutional Investors	144829230	7.19
Sub Total	144832264	7.20
(2) Non-Institutions
Bodies Corporate	416557981	20.69
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	497159615	24.70
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	336325777	16.71
Any Others (Specify)	33810043	1.68
Clearing Members	1262119	0.06
Non Resident Indians	32470524	1.61
Trusts	77400	0.00
Sub Total	1283853416	63.78
Total Public shareholding (B)	1428685650	70.97
Total (A)+(B)	2012955154	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	655680000	0.00
Sub Total	655680000	0.00
Total (A)+(B)+(C)	2668635154	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Synthetic blended ring spun yarn.

Products :

Product Description	ITC Code
Cotton Yarn	5205.00
Manmade Staple Yarn	5509.00
Cotton Seed Oil	151229.00
Cotton Seed Oil-Cake	230610.03

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Installed Capacity*	Actual Production
Synthetic Yarn	Spindles	22248	4463
Cotton Yarn	Spindles	36000	3860
Cotton Yarn	Rotors	1728	3194
Cotton Seed Oil	Quintals	75000	--
Cotton Bales	Bales	54798	36208 (In Bales)
Cotton Fabric	Mtrs	--	717094(227 MT)
Grey Fabric	Looms	114	24238 (Mtr)

*As certified by the management and being technical matter accepted by the auditors as correct.

GENERAL INFORMATION

No. of Employees :

1325 (Approximately)

Bankers :

v Axis Bank Limited

v Bank of India

v Union Bank of India

v State Bank of India

v Oriental Bank of Commerce

v Indian Overseas Bank

v Canara Bank

v The Catholic Syrian Bank Limited

v Jankalayan Sahakari Bank Limited

v Karur Vyasya Bank Limited

v SICOM Limited

Facilities :

Secured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
Indian rupees loan from banks	752.726	932.219
Vehicle Loans from Banks	0.281	0.686
Loans repayable on demand Cash credit from banks	1323.871	1093.311
Total	2076.878	2026.216

NOTES:

Security and Terms of repayment including current maturities of long term borrowings.

a) Term Loan from SICOM Limited carries interest @ 16.75% p.a. The entire loan is repayable in 10 quarterly Instalments of Rs. 6.000 Millions and 10 quarterly instalment of Rs.4.000 Millions, with the last Instalment due on 15th September, 2012. Outstanding principal amount as at 31st March, 2012 is Rs.7.000 millions There is an default in Interest of Rs.0.173 millions

b) Term Loan from Union Bank of India carries interest @ 15.75 % p.a. The entire loan is repayable in 32 quarterly Instalments of Rs. 6.250 Millions, with the last instalment due on 31st March, 2017. Outstanding principal amount as at 31st March, 2012 is Rs.131.116millions. There is a default in Instalment Rs. 6.250millions and Interest Rs. 5.393millions

c) Term Loan from Axis Bank Limited carries interest @ 15.00% p.a. The entire loan is repayable in 28 quarterly Instalments of Rs. 5.357 Millions, with the last instalment due on 31st December, 2015. Outstanding principal amount as at 31st March, 2012 is Rs. 78.505 millions. There is a default in Instalment for Rs. 5.357 millions and Interest of Rs. 3.441 millions

d) Term Loan from Bank of India carries interest @ 16.25% p.a.The entire loan is repayable in 30 quarterly Instalments of Rs. 8.333 Millions, with the last instalment due on 31st March, 2017. Outstanding principal amount as at 31st March, 2012 is Rs.172.499 millions. There is a default in Instalment Rs. 8.333 millions and Interest Rs. 7.557 millions

e) Term Loan from Indian Overseas Bank carries interest @ 15.50% p.a. The entire loan is repayable in 30 quaterly Instalments of Rs. 8.333 Millions, with the last instalment due on 31st July, 2017. Outstanding principal amount as at 31st March, 2012 is Rs. 191.629 millions. There is a default in Instalment Rs. 8.333 millions and Interest Rs. 7.611 millions

f) Term Loan from Oriental Bank of Commerce carries interest @ 17.00 % p.a. The entire loan is repayable in 30 quarterly Instalments of Rs. 5.000 Millions, with last instalment due on 30th June, 2016. Outstanding principal amount as at 31st March, 2012 is Rs. 89.723 millions. There is a default in Instalment Rs. 5.000 millions and Interest Rs. 4.171 millions

g) Term Loan from Canara Bank carries interest @ 15.00 % p.a. The entire loan is repayable in 24 Quaterly Instalments of Rs. 6.250 Millions with the last instalment due on 31st December, 2015. Outstanding principal amount as at 31st March, 2012 is Rs. 100.000 millions. There is a default in Instalment Rs. 6.250 millions and Interest Rs.1.799 millions

h) Term Loan from State Bank of India carries interest @ 17.75% p.a. The entire loan is repayable in 8 monthly Instalments of Rs. 1.560 Millions, 1 monthly instalment of Rs. 1.620 Millions, 36 monthly instalments of Rs. 1.300 Millions, 44 monthly instalment of Rs. 1.665 Millions, 4 monthly Instalments of Rs. 1.685 Millions, 2 monthly instalment of Rs. 3.030 Millions and 1monthly instalment of Rs. 3.040 Millions, with the last instalment due on 30th June, 2017. Outstanding principal amount as at 31st March, 2012 is Rs. 107.300 millions. There is a default in Instalment Rs. 3.900 millions and Interest Rs. 4.823 millions

i) Term Loan from The Catholic Syrian Bank Limited carries interest @ 15.50% p.a. The entire loan is repayable in 20 quaterly Instalments of Rs. 5.000 Millions with the last instalment due on 31st March, 2015. Outstanding principal amount as at 31st March, 2012 is Rs. 62.670 millions. There is a default in Instalment Rs. 5.000 millions and Interest Rs. 2.682 millions

j) Term Loan from Janakalyan Sahakari Bank Limited carries interest @ 15.00% p.a. The entire loan is repayable in 77 monthly Instalments of Rs. 0.321 Millions and 1 monthly instalment of Rs. 0.283 Millions, with the last instalment due on 31st January, 2015. Outstanding principal amount as at 31st March, 2012 is Rs. 19.295 millions. There is a default in Instalment Rs. 0.963 millions.and Interest Rs. 0.554 millions.

k) Term Loan from Bank Of India, (Housing Complex) carries interest @ 15.25 % p.a.The entire loan is repayable in 89 monthly instalments of Rs. 0.800 Millions and 1 monthly instalment of Rs. 0.300 Millions, with the last instalment due on 30th August, 2019. Outstanding principal amount as at 31st March, 2012 is Rs. 57.321 millions. There is a default in Instalment Rs. 0.800 millions and Interest of Rs. 2.207 millions

l) Vehicals Loan from Axis Bank Limited carries interest @ 9.50 % p.a. (on a monthly reducing basis) The entire loan is repayable in 35 monthly instalments of Rs. 0.020millions each with the last instalment due on 1st November, 2012. Outstanding principal amount as at 31^st March, 2012 is Rs. 0.157millions. Vehical Loan from ICICI Bank Limited carries interest @ 10.75% p.a. The entire loan is repayable in 36 monthly instalments of Rs. 0.033 millions each with the last instalment due on 15th December, 2012. Outstanding principal amount as at 31^st March, 2012 is Rs. 0.630 millions

m) All the above Term Loans have First pari passu charge on all the fixed assets (present and future) pertaining to all the assets of the Company and Second pari passu charges on all the stocks and Book debts of the Company

n) The Vehicle Loan Finance is secured by Hypothecation of respective vehicles.

Security

Cash Credit Loans from Banks are secured against hypothecation of Raw Materials, Stock in Trade, Stock-in-Process, Finished Goods, Consumables, Stores and Spares and Packing Material, Book Debts and other receivables belonging to the Company and second pari passu charge on immovable properties of the Company.

Banking Relations :	--
Auditors :
Name :	Kanu Doshi Associated Chartered Accountants
Associates/Subsidiaries :	v Birla Cotsyn ( India ) Limited, FZE v Birla Integrated Textile Park Limited v Zenith Birla (India) Limited v Birla Viking Travels Limited v Birla Global Corporate Limited v Birla Infrastructure Limited v Khamgaon Syntex India Limited v Nirved Traders Private Limited v Birla Power Solutions Limited v Birla Leasing and Infrastructure Limited v Birla Energy Infra Limited Investment v Birla Pacific Medspa Limited(Loan) v Birla Shloka Edutech Limited(Loan) v Sherason Investment and Trading Company Private Limited (Loan) v Godavari Corporation Private Limited (Loan)

CAPITAL STRUCTURE

As on 31.03.2012

Authorized Capital:

No. of Shares	Type	Value	Amount
5500000000	Equity Shares	Re. 1/- each	Rs. 5500.000 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
2668635154	Equity Shares	Re. 1/- each	Rs. 2668.635 millions

NOTES:

1. Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

Equity Shares	31st March, 2012
	Number	Amt in Rs. millions
Shares outstanding at the beginning of the year	2,612,262,404	2612.262
Shares Issued during the year	56,372,750	56.373
Shares bought back during the year	-	-
Shares outstanding at the end of the year	2,668,635,154	2668.635

2. Terms/ rights attached to the equity shares

The company has only one class of equity shares having a par value of Rs.1/- per shares. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends (if any) in Indian rupees. The dividends (if any) proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holder of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

3. Details of shareholders holding more than 5% shares in the company.

Equity shares of Rs.1 /- each fully paid Name of Shareholders	31st March, 2012
	No. of Shares held	% of Holding
Polytex Limited	238101240	8.92%
Shearson Investment and Trading Company Private Limited	182342342	6.83%
Nirved Traders Private Limited	159915602	5.99%
Bank of New York Mellon (GDR)	745680000	27.94%

As per of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares except for shares held by Bank of New York Mellon which are in the form of GDR.

4. Details of shares issued other than cash for the period of Five Years immediately preceding the Balance Sheet date.

113,547,000 Equity Shares of Rs.1/- each have been allotted on 28th June, 2006 as fully paid Bonus Shares by Capitalisation of Reserves & Securities Premium Account.

426,981,554 Equity Shares of Rs.1/- each have been allotted on 4th October, 2010 as fully paid Bonus Shares by Capitalisation of Reserves & Securities Premium Account.

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		2668.635	2612.262	2134.908
2] Share Warrant		0.000	15.926	0.000
3] Reserves & Surplus		490.717	309.307	670.219
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3159.352	2937.495	2805.127
LOAN FUNDS
1] Secured Loans		2076.878	2026.216	1874.819
2] Unsecured Loans		266.185	388.135	169.496
TOTAL BORROWING		2343.063	2414.351	2044.315
DEFERRED TAX LIABILITIES		112.709	52.335	48.298
TOTAL		5615.124	5404.181	4897.740
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1837.855	1902.960	1693.433
Capital work-in-progress		178.977	75.536	1244.524
INVESTMENT		1.752	1.597	0.150
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	367.235	654.299	202.392
	Sundry Debtors	2477.698	1193.983	720.155
	Cash & Bank Balances	37.450	1014.036	1190.213
	Other Current Assets	181.687	142.399	0.000
	Loans & Advances	2446.435	1539.312	314.596
Total Current Assets		5510.505	4544.029	2427.356
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1475.839	776.771	219.912
	Other Current Liabilities	384.148	287.033	83.553
	Provisions	53.978	55.837	164.258
Total Current Liabilities		1913.965	1119.641	467.723
Net Current Assets		3596.540	3424.388	1959.633
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		5615.124	5404.481	4897.740

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	7596.442	5406.192	3440.057
		Other Income	55.111	12.114	144.268
		TOTAL (A)	7651.553	5418.306	3584.325
Less	EXPENSES
		Cost of materials and components consumed	1399.852	1308.757
		Purchases of traded goods	4960.056	3165.859
		Changes in inventories of finished goods, work in progress and stock in trade	83.826	(157.253)
		Employee benefits expense	176.677	166.699
		Other expenses	448.737	403.214
		TOTAL (B)	7069.148	4887.276	3224.491
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		582.405	531.030	359.834
Less	FINANCIAL EXPENSES (D)		396.782	307.791	192.863
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		185.623	223.239	166.971
Less/ Add	DEPRECIATION/ AMORTISATION (F)		96.342	83.442	51.545
Add	EXCEPTIONAL ITEMS		10.893	1.250	0.000
	PROFIT BEFORE TAX (E-F) (G)		100.174	141.047	115.426
Less	TAX (I)		80.924	33.037	39.959
	PROFIT AFTER TAX (G-I) (J)		19.250	108.010	75.467
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		112.637	4.627	41.188
Less	APPROPRIATIONS
		Proposed Dividend	0.000	0.000	112.028
		Dividend Distribution Tax	0.000	0.000
	BALANCE CARRIED TO THE B/S		131.887	112.637	4.627
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	418.123	216.855	84.009
	TOTAL EARNINGS		418.123	216.855	84.009
	IMPORTS
		Stores & Spares	0.364	0.465	3.285
		Capital Goods	2.687	1.370	0.000
	TOTAL IMPORTS		3.051	1.835	3.285
	Earnings Per Share (Rs.)		0.00	0.04	0.02

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2012	30.09.2012
	1^st Quarter	2^nd Quarter
Net Sales	2238.950	2032.910
Total Expenditure	2141.540	1894.600
PBIDT (Excl OI)	97.410	138.310
Other Income	51.890	0.250
Operating Profit	149.300	138.560
Interest	99.520	103.390
Exceptional Items	10.890	0.000
PBDT	60.670	35.170
Depreciation	24.290	24.270
Profit Before Tax	36.380	10.900
Tax	42.520	4.740
Provisions and contingencies	0.000	0.000
Profit After Tax	(6.140)	6.160
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	(6.140)	6.160

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.25	1.99	2.10
Net Profit Margin (PBT/Sales)	(%)	1.32	2.61	3.36
Return on Total Assets (PBT/Total Assets}	(%)	1.36	2.18	2.80
Return on Investment (ROI) (PBT/Networth)		0.03	0.04	0.04
Debt Equity Ratio (Total Liability/Networth)		1.35	1.20	0.90
Current Ratio (Current Asset/Current Liability)		2.88	4.06	5.19

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	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----
22]	Litigations that the firm / promoter involved in	----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----
26]	Buyer visit details	----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	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

UNSECURED LOAN

Unsecured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
Fixed Deposits from Public	53.708	23.456
Inter Corporate Deposits	163.722	133.730
Due to Related Parties	48.755	230.949
Total	266.185	388.135

OPERATING AND FINANCIAL PERFORMANCE:

During the year, net income (standalone) increased by 41.38% over the previous year, i.e. from Rs. 5419.556 millions to Rs. 7662.446 millions. Profit before tax (standalone) has decreased by 28.97% over the previous year Profit before tax. The fall is mainly due to the deteriorating conditions prevailing in the global economy scenario and also the interest rates hikes by the Banks. Moreover, the fluctuations in the prices due to change in government guidelines have also stretched the cash flows.

EXPANSION AND MODERNIZATION PROJECT

The Company is now embarking on an expansion program by setting up another 84,864 spindles of Cotton Yarn spinning facility at Malkapur, Maharashtra in the existing premises of the Company. The total Project Cost is Rs. 3330.000 millions. The project has been financially appraised by SBI Capital Market Ltd and Technical Evaluation study by Gherzi Eastern India Limited

MANAGEMENT’S DISCUSSION AND ANALYSIS REPORT

Industry Structure and Business Overview:

The Indian Textiles Industry has an overwhelming presence in the economic life of the Country, through its contribution to industrial output, employment generation, and the export earnings of the country.

The Textile Industry accounts for 14% of the total industrial production, contributes 4% to the Gross Domestic Product and 17% to the country’s export earnings.

It provides direct employment to over 35 million people. The Textiles sector is the second largest provider of employment after agriculture. Thus, the growth and all round development of this industry has a direct bearing on the improvement of the economy of the nation.

The key advantages of the Indian industry are that it is the second largest producer of cotton with the largest area under cotton cultivation in the world and has an edge in low cost cotton sourcing compared to other countries. While the average wage rates in India are 50-60 per cent lower, than that in developed countries. Production facilities are available across the textile value chain, from spinning to garments manufacturing. The industry is investing in technology and increasing its capacities which should prove a major asset in the years to come. Also the experience gathered in terms of working with global brands is benefiting the Indian Industry.

The Indian textiles industry is extremely varied, with the hand-spun and handwoven sector at one end of the spectrum, and the capital intensive, sophisticated mill sector at the other. The decentralized powerlooms / hosiery and knitting sector form the largest section of the Textiles Sector. The close linkage of the Industry to agriculture and the ancient culture, and traditions of the country make the Indian textiles sector unique in comparison with the textiles industry of other countries.

The textile industry basically comprises of small-scale, non integrated spinning, weaving, finishing, and apparel-making enterprises. Off which Spinning is the most consolidated and technically efficient sector in India’s textile industry.

The Cotton / Man-made fibre textile industry is the largest organized industry in the country in terms of employment (nearly 1.000 million workers) and number of units. Besides, there are a large number of subsidiary industries dependent on this sector, such as those manufacturing machinery, accessories, stores, ancillaries, dyes & chemicals. As on 30.11.2011, there were 1946 cotton/man-made fibre textile mills (non-SSI) in the country with an installed capacity of 43.130 million spindles 5,20,000 rotors and 52,000 looms. Textile production covering man-made fibre, man-made filament yarn and cotton yarn is showing a decreasing trend. Blended and 100% non

cotton yarn production recorded an increase of 5.2% during 2011-12 (April – October 2011). The production of spun yarn during April- Oct. (2011-12) has shown a decrease of 8.1%. The production of cotton yarn during 2011-12 (April-Oct. 2011) recorded a decrease of 12.7% (Provisional). Cloth production by mill sector showed marginal increase of 4.6% during April-Oct. (2011-12) (provisional). During the same period cloth production by power loom and hosiery sector showed a decrease of 4.4% and 17.8% respectively. However the cloth production in handloom sector showed an increase of 3%.

India’s textiles and clothing industry is one of the largest contributing sectors of India’s exports worldwide. According to the Planning Commission on boosting India’s manufacturing exports during 12th Five Year Plan (2012-17), envisages India’s exports of Textiles and Clothing at US$ 32.35 billion by the end of 11th Five Year plan. An export target of US$ 65 billion and creation of 25.000 million additional jobs has been proposed with a CAGR of 15% during the XII Plan. At current prices the Indian textiles industry is pegged at US$ 55 billion, 64% of which services domestic demand.

The exports basket comprise a wide range of items including readymade garments, cotton textiles, handloom textiles, man-made fibre textiles, wool and woollen products, silk, jute and handicrafts including carpets. India’s textiles products, including handlooms and handicrafts, are exported to more than a hundred countries. However, the USA and the EU, account for about two-thirds of India’s textiles exports. The other major export destinations are China, U.A.E., Sri Lanka, Saudi Arabia, Republic of Korea, Bangladesh, Turkey, Pakistan, Brazil, Hong Kong, Canada, Egypt etc.

CONTINGENT LIABILITY

Contingent Liability not provided for, in respect of: -

(Rs. in millions)

PARTICULARS	31.03.2012
Claims against Company not acknowledged as debt	0.102
Labour matter pending with the court	7.500
TOTAL	7.602

Ultimate outflow for the matters referred to above depends on the settlement of these cases

STATEMENT OF STAND ALONE AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED

30^th SEPTEMBER, 2012

(Rs. In Millions)

Particular	For the Quarter Ended		For the Year Ended
	30.09.2012 (Unaudited)	30.06.2012 (Unaudited)	30.09.2012 (Unaudited)
Income from Operations
Net Sales/Income from Operations	854.789	1266.320	2121.109
Other Operating Income	50.147	21.364	71.511
Total Income from operations (net)	904.936	1287.684	2192.620
Expenses
(a) (Increase) / Decrease in stock in trade and work in progress	5.221	39.237	44.458
(b) Consumption of raw material	331.634	295.238	626.672
(c) Purchase of traded goods	459.931	687.465	1147.396
(d) Employee costs	48.391	47.230	95.621
(e) Depreciation and amortization expenses	23.509	24.832	48.341
(f) Other Expenditure	117.705	114.374	232.079
Total Expenses	986.390	1208.376	2194.766
Profit from Operations before Other Income, Finance costs and Exceptional item	(81.454)	78.309	(2.146)
Other Income	2.285	7.377	9.662
Profit/ Loss from Ordinary Activities before Finance costs and Exceptional item	(79.169)	66.686	7.516
Interest and Finance costs	98.433	100.745	199.178
Profit/ Loss from Ordinary Activities after Finance costs but Exceptional item	(177.603)	(14.059)	(191.663)
Exceptional items (Gain)(-)/ Loss on forex fluctuation of GDR proceeds in the foreign bank a/c	0.000	0.000	0.000
Profit/ Loss from Ordinary Activities before tax	(177.603)	(14.059)	(191.663)
Tax Expenses
- Current Tax	-	0.000	0.000
- Deferred Tax	(57.954)	(0.41)	(57.995)
- Prior Year Tax Adjustments	-	0.000	0.000
Net Profit/ Loss from Ordinary Activities after tax	(119.549)	(14.018)	(133.663)
Extraordinary Items	-	0.000	0.000
Net Profit for the period	(119.549)	(14.018)	(133.663)
Share of Profit / (loss) of associates	-	0.000	0.000
Minority Interest	-	0.000	0.000
Net Profit / (loss) after taxes, minority interest and share of profit/ (loss) of associates for the period	(119.649)	(14.018)	(133.668)
Paid- up Equity Share Capital (Face value of the share – Rs. 1/- per share)	2668.635	2668.535	2668.635
Reserves excluding revaluation reserves as per balance sheet of Previous Accounting Year	55.712	-	55.712
Earnings per share
Basic and Diluted EPS (Rupees)	(0.0448)	(0.0053)	(0.0501)
PARTICULARS OF SHAREHOLDING
1. Public shareholding
Number of Shares	2084365650	2084365650	2084365650
Percentage of Shareholding	78.11	78.11	78.11
2. Promoters and promoter group shareholding
a) Pledged/Encumbered
- Number of Shares	279920000	279920000	279920000
- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	47.91	47.91	47.91
- Percentage of Shares (as a % of the Total Share Capital of the Company)	10.49	10.49	10.72
Non - encumbered
- Number of Shares	304349504	304349504	247976754
- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	52.09	52.09	52.09
- Percentage of Shares (as a % of the total share capital of the company)	11.40	11.40	11.40

	Particulars	Quarter Ended 30.09.2012
B	Investor complaints
	Pending at the beginning of the quarter	Nil
	Received during the quarter	7
	Resolved of during the quarter	7
	Remaining unresolved at the end of the quarter	Nil

NOTES:

Particular	For the Quarter Ended		For the Year Ended
	30.09.2012 (Unaudited)	30.06.2012 (Unaudited)	30.09.2012 (Unaudited)
Net Sales / Income from operations	854.789	1266.320	2121.109
Profit Before Tax	(177.603)	(14.059)	(191.663)
Profit After Tax	(119.549)	(14.018)	(133.668)

1. The above results have been reviewed by the Audit Committee and approved and taken on record by the Board of Directors at their respective meetings held on 8^th November, 2012

2. The Statutory Auditors of the Company have carried out a Limited Review of the Standalone financial results as required under Clause 41 of the Listing Agreement and the related report is being submitted to the stock exchanges i.e. BSE and NSE

3. The Company has provided depreciation on Plat and Machinery o the basis of continuous process plant.

4. The previous period / year figures have been regrouped / rearranged wherever necessary to make them comparable with the current period ended 30 ht September 2012.

5. The statement of Assets and Liabilities as required under Clause 41(V)(h) of the Listing Agreement in enclosed.

SEGMENT – WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. In Millions)

Particular	For the Quarter Ended		For the Year Ended
	30.09.2012 (Unaudited)	30.06.2012 (Unaudited)	30.09.2012 (Unaudited)
1. Segment Revenue
a. Textile – Yarn	530.468	531.315	1061.783
b. Textile - Fabrics	374.467	756.370	1130.837
Total	904.935	1287.684	2192.620
Less: Inter – segment revenue
Net Sales Income from Operations	904.935	1287.684	2192.620
2. Segment Results Profit / (Loss) (before tax and interest) from Segment
a. Textile – Yarn	(1.639)	(6.387)	(8.026)
b. Textile - Fabrics	(82.309)	88.749	6.441
c. Others	0.000	0.000	0.000
d. Unallocated	4.778	4.323	9.101
Total	(79.170)	86.685	7.516
Less: Interest	98.433	100.745	199.178
Total Profit / (Loss) Before Tax & Prior Period Adjustment	(177.603)	(14.060)	(191.663)
3. Capital Employed
(Segment Assets – Segment Liabilities)
a. Textile – Yarn	1878.178	97.200	1876.176
b. Textile - Fabrics	1041.360	1323.578	1041.360
c. Others	0.000	0.000	0.000
d. Unallocated	128.696	1852.102	128.696
Total	3048.234	3272.879	3048.234

Statement of Assets and Liabilities as at the Half Year ended 30^th September, 2012

(Rs. in Millions)

Particulars	As at Current Year ended 30.09.2012
I. EQUITY AND LIABILITIES	Unaudited
A. Shareholders Funds
a] Share Capital	2668.635
b] Reserves and Surplus	379.599
Sub-total – Shareholders’ funds	3048.234
B. Non-current Liabilities
a] Long term Borrowings	763.817
b] Deferred Tax Liabilities (Net)	54.714
c] Other Long Term Liabilities	3.600
d] Long term provisions	40.658
Sub-total - Non-current Liabilities	862.789
C. Current Liabilities
a] Short term Borrowings	1666.464
b] Trade Payables	1525.872
c] Other Current Liabilities	426.485
d] Short Term Provisions	16.176
Sub-total - Current Liabilities	3634.997
TOTAL - EQUITY AND LIABILITIES	7546.020
I I. ASSETS
A. Non-current assets
a] Fixed assets	0.000
(i) Tangible assets	1884.334
(ii) Intangible assets	0.150
(iii) Capital work-in-progress	188.829
(iv) Intangible assets under development	0.000
b] Non-current investment	1.751
c] long Term loans and Advances	2533.930
d] Other non-current assets	93.642
Sub-total – Non- current assets	4702.637
B. CURRENT ASSETS
(a) Inventories	341.543
(b) Trade Receivables	2362.404
(c) Cash and Cash equivalents	38.494
(d) Short Term loans and advances	54.018
(e) Other Current Assets	46.925
Sub-total – Current Assets	2843.384
TOTAL - ASSETS	7546.020

FIXED ASSETS

v Freehold Land

v Leasehold Land

v Buildings

v Plant and Machinery

v Furniture and Fixtures

v Computers

v Electrical Installation

v Computer 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.53.51
UK Pound	1	Rs.84.85
Euro	1	Rs.71.43

INFORMATION DETAILS

Report Prepared by :

NID

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	2
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		34

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.