MIRA INFORM REPORT

Report Date :

31.01.2013

IDENTIFICATION DETAILS

Name :	BOMBAY RAYONS FASHIONS LIMITED
Registered Office :	D – 1^ST Floor, Oberoi Garden Estates, Chandivali, Farms Road, Chandivali, Andheri (East), Mumbai – 400072, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	21.05.1992
Com. Reg. No.:	11-066880
Capital Investment / Paid-up Capital :	Rs.1346.000 Millions
CIN No.: [Company Identification No.]	L17120MH1992PLC066880
TAN No.: [Tax Deduction & Collection Account No.]	MUMM08816D
PAN No.: [Permanent Account No.]	AAACM3447J
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Fabrics and Garments.
No. of Employees :	24104 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 120000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track record. There appears some dip in the profitability of the company it is due to increased financial cost and depreciation. However, general financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported regular and as per commitment. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – June 30, 2012

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

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

INDIAN ECONOMIC OVERVIEW

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

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	SHORT TERM BANK FACILITY : CARE A3
Rating Explanation	Moderate degree of safety it carry higher credit risk
Date	01.08.2012

Rating Agency Name	CARE
Rating	LONG TERM BANK FACILITY : CARE BBB-
Rating Explanation	Moderate degree of safety it carry moderate credit risk
Date	01.08.2012

Note: Subject has been defaulted by EPFO as on 31.03.2012.

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/ Head Office :	D – 1^ST Floor, Oberoi Garden Estates, Chandivali, Farms Road, Chandivali, Andheri (E), Mumbai – 400072, Maharashtra, India
Tel. No.:	91-22-66955566/ 56950506
Fax No.:	91-22-28476992/ 28598522
E-Mail :	mail@bombayrayon.com opportunities@bombayrayon.com contactus@bombayrayon.com investors@bombayrayon.com
Website :	http://www.bombayrayon.com
Area :	5000 sq. ft.[Approximately]
Location :	Owned
Bangalore Office :	KIADB Apparel Park, Near Railway Station, Doddaballapur, Bangalore – 561206, Karnataka, India
Tel No.:	91-80-30940000
Fax No.:	91-80-30940111
Factory :	WEAVING AND YARN DYEING – Maharashtra – Navi Mumbai, Sonale and Tarapur, District Thane – Silvassa – Karnataka – Bangalore PROCESSING AND YARN DYEING – Maharashtra -Tarapur – Karnataka – Bangalore GARMENTING – Maharashtra – Navi Mumbai, Islampur, Latur, Ichalkaranji and Osmanabad – Karnataka - Bangalore – Tamilnadu - Chennai – Kerala - Thiruvannthapuram

DIRECTORS

AS ON 31.03.2012

Name :	Mr. Janardan Agarwal
Designation :	Chairman
Date of Birth :	25.05.1949
Qualification :	B. Com
Date of Appointment :	24.08.1992
Name :	Mr. Aman Agarwal
Designation :	Vice Chairman
Qualification :	M.B.A. (Australia)
Date of Appointment :	31.01.2003
Name :	Mr. Naseer Ahmed
Designation :	Joint Vice Chairman
Date of Birth :	22.05.1959
Qualification :	B. Com
Date of Appointment :	25.07.2005
Name :	Mr. Prashant Agarwal
Designation :	Managing Director
Qualification :	B. Tech., M.S. (U.S.)
Date of Appointment :	01.09.1997
Name :	Mr. Uday Mogre
Designation :	Executive Director (Corporate)
Name :	Mr. A R Mundra
Designation :	Executive Director (Finance)
Date of Birth :	21.07.1956
Qualification :	B. com, L. L. B, ACA, ACS
Date of Appointment :	16.05.2005
Name :	Dr. Pravin P Shah
Designation :	Director
Name :	Dr. B. S. Bhesania
Designation :	Director
Name :	Mr. S. B. Agarwal
Designation :	Director
Name :	Mr. Suresh Vishwasrao
Designation :	Director
Name :	Mr. M. M. Agrawal
Designation :	Director
Name :	Mr. Mukul Sarkar
Designation :	Nominee Director - EXIM Bank

KEY EXECUTIVES

Name :	Ms. Prachi A. Deshpande
Designation :	Company Secretary
Address :	D 1^st Floor, Oberoi Garden Estates, Chandivali Farms Road, Chandivali, Andheri (East), Mumbai – 400072, Maharashtra, India

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	22456500	16.68
Bodies Corporate	51922760	38.58
Sub Total	74379260	55.26
(2) Foreign
Bodies Corporate	51000400	37.89
Sub Total	51000400	37.89
Total shareholding of Promoter and Promoter Group (A)	125379660	93.15
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	34548	0.03
Foreign Institutional Investors	178625	0.13
Sub Total	213173	0.16
(2) Non-Institutions
Bodies Corporate	5863737	4.36
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	795042	0.59
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	1950181	1.45
Any Others (Specify)	398207	0.30
Clearing Members	223493	0.17
Non Resident Indians	174714	0.13
Sub Total	9007167	6.69
Total Public shareholding (B)	9220340	6.85
Total (A)+(B)	134600000	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)	134600000	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Fabrics and Garments.

Products :

ITC Code	Product Descriptions
5208	Woven Fabric of Cotton
5211	Woven Fabric of Cotton mixed mainly or solely with Man made Fibre
6205	Men’s or Boys Shirting’s
6206	Women’s or Girls Blouses, Shirts and Shirt-Blouses

Brand Names :

‘GURU’

PRODUCTION STATUS AS ON (31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Fabrics	Million Metres	235.00	121.84
Garments	Million Pieces	88.80	40.65

GENERAL INFORMATION

No. of Employees :

24104 (Approximately)

Bankers :

Ø Allahabad Bank

Ø AXIS Bank Limited

Ø Bank of India

Ø Bank of Maharashtra

Ø Citibank N.A.

Ø Corporation Bank

Ø DENA Bank

Ø Export-Import Bank of India

Ø IDBI Bank Limited

Ø Indian Bank

Ø Karnataka Bank Limited

Ø Karur Vysya Bank Limited

Ø Oriental Bank of Commerce

Ø Punjab National Bank

Ø State Bank of Bikaner and Jaipur

Ø State Bank of India

Ø State Bank of Hyderabad

Ø State Bank of Mysore

Ø State Bank of Patiala

Ø State Bank of Travancore

Ø Standard Chartered Bank

Ø Central Bank of India

Ø Indian Overseas Bank Limited

Ø ICICI Bank Limited

Ø Union Bank Of India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
A) TERM LOANS
- From Banks	13058.000	13084.400
Term Loans from banks are secured by first charge on all fixed assets except specific assets and second charge on the current assets of the company
B) VEHICLE LOANS
- From Banks	2.200	2.600
- From Other Parties	9.700	4.600
The vehicle loans from the banks and others are secured by hypothecation of specified vehicles against which the finance is obtained
C) WORKING CAPITAL LOANS	15627.500	12651.900
Working capital Loans from banks are secured by hypothecation of all current assets and second charge on the fixed assets except specific assets of the company
Total	28697.400	25743.500

Banking Relations :	--
Auditors :
Name :	V. K. Beswal and Associates Chartered Accountants
Address :	Mumbai, Maharashtra, India
Subsidiaries :	· BRFL Europe B.V. · DPJ Clothing Limited · Bombay Rayon Holdings Limited · BRFL Italia S.R.L. · BRFL Bangladesh Private Limited · STI India Limited
Other related parties :	· Reynold Shirting Limited · Bombay Rayon Clothing Limited · Bestsellers Retail India Private Limited · Best United Lifestyles Private Limited · Best United India Comforts Private Limited. · Bestseller Wholesale India Private Limited · B. R. Machine Tools Private Limited · Latur Integrated Textile Park Private Limited · Islampur Integrated Textile Park Private Limited · STI Sanoh India Limited · Kagal Industrial Textile Technology Park Private Limited · Ashwelll Holding Company Private Limited · J. D. Agarwal Foundation

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
15,00,00,000	Equity Shares	Rs. 10/- each	Rs. 1500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
134600000	Equity Shares	Rs.10/- each	Rs.1346.000 Millions

Notes:

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

Particulars	As at March 31, 2012
	No. of Shares	Rs. In Millions
At the beginning of the year	127,900,000	1279.000
Shares Issued during the year *	6,700,000	67.000
At the end of the year	134,600,000	1346.000

Detail of shareholders holding more than 5% of shares in the company

Name of Shareholder	As at March 31, 2012
	No. of Shares	% of Holding
Janardan Agarwal	7,756,422	5.76%
Reynold Shirting Limited	13,600,000	10.10%
Bombay Rayon Clothing Limited	7,402,760	5.50%
AAA United B.V.	51,000,400	37.89%
Ashwell Holding Company Private Limited	28,420,000	21.11%

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		1346.000	1279.000	1119.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		27978.600	24512.400	17974.171
4] (Accumulated Losses)		0.000	0.000	0.000
5] Advance Money Received for convertible warrants		493.100	860.000	202.650
NETWORTH		29817.700	26651.400	19295.821
LOAN FUNDS
1] Secured Loans		28697.400	25743.500	21467.237
2] Unsecured Loans		3641.000	2809.400	3334.247
TOTAL BORROWING		32338.400	28552.900	24801.484
DEFERRED TAX LIABILITIES		2610.900	1657.000	911.771
TOTAL		64767.000	56861.300	45009.076
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		37248.300	28681.800	19259.210
Capital work-in-progress		517.500	6375.700	5542.555
INVESTMENT		1684.100	2227.200	4394.813
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	17731.000	12628.700	6955.757
	Sundry Debtors	4610.700	4791.200	3772.531
	Cash & Bank Balances	1184.800	349.200	260.776
	Other Current Assets	2.800	1.100	4403.113
	Loans & Advances	10058.700	8948.100	2405.670
Total Current Assets		33588.000	26718.300	17797.847
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4465.100	3649.400	1520.969
	Other Current Liabilities	3437.300	2996.600	239.169
	Provisions	368.500	495.700	225.211
Total Current Liabilities		8270.900	7141.700	1985.349
Net Current Assets		25317.100	19576.600	15812.498
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		64767.000	56861.300	45009.076

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	27349.600	22548.400	16147.659
		Other Income	143.000	234.900	156.605
		TOTAL (A)	27492.600	22783.300	16304.264
Less	EXPENSES
		Cost of materials consumed	17091.100	14113.500	12272.478
		Changes in inventories of finished goods & work-in-progress	(3215.100)	(2056.600)
		Employee benefits expense	2301.600	2046.700
		Other expenses	3851.000	3036.100
		Excess provision for FBT written back	(1.100)	0.000
		TOTAL (B)	20027.500	17139.700	12272.478
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		7465.100	5643.600	4031.786
Less	FINANCIAL EXPENSES (D)		2215.300	1452.100	935.437
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5249.800	4191.500	3096.349
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2172.300	1366.700	680.653
	PROFIT BEFORE TAX (E-F) (G)		3077.500	2824.800	2415.696
Less	TAX (H)		1012.400	557.900	656.505
	PROFIT AFTER TAX (G-H) (I)		2065.100	2266.900	1759.191
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	4449.367	2976.552
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	NA	90.000
		Proposed Dividend			167.850
		Corporate Dividend Tax			28.526
	BALANCE CARRIED TO THE B/S		NA	NA	4449.367
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	12236.900	10730.300	9311.959
	TOTAL EARNINGS		12236.900	10730.300	9311.959
	IMPORTS
		Raw Materials	1960.600	995.100	560.096
		Stores & Spares	241.700	104.500	332.188
		Capital Goods	18.400	1992.300	2164.861
	TOTAL IMPORTS		2220.700	3091.900	3057.145
	Earnings Per Share (Rs.)
	- Basic		15.50	19.06	18.90
	- Diluted		14.67	17.70	18.59

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012
	1^st Quarter	2^nd Quarter
Net Sales	7651.600	7143.400
Total Expenditure	5662.600	5078.100
PBIDT (Excl OI)	1989.000	2065.300
Other Income	47.400	15.200
Operating Profit	2036.400	2080.500
Interest	661.100	769.700
Exceptional Items	0.000	0.000
PBDT	1375.300	1310.800
Depreciation	656.400	650.100
Profit Before Tax	718.900	660.700
Tax	222.700	224.900
Provisions and Contingencies	0.000	0.000
Profit After Tax	496.200	435.800
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	496.200	435.800

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	7.51	9.95	10.79
Net Profit Margin (PBT/Sales)	(%)	11.25	12.53	14.96
Return on Total Assets (PBT/Total Assets}	(%)	4.34	5.10	6.52
Return on Investment (ROI) (PBT/Networth)		0.10	0.11	0.13
Debt Equity Ratio (Total Debt/Networth)		1.08	1.07	1.29
Current Ratio (Current Asset/Current Liability)		4.06	3.74	8.96

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	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

DETAILS OF UNSECURED LOAN

(Rs. In Millions)

PARTICULARS	31.03.2012	31.03.2011
a) Commercial Paper from bank	1892.400	723.800
a) Commercial Paper from others	234.800	0.000
c) Other Loans
- From Banks	1016.600	2085.600
- From Other Parties	497.200	0.000
Total	3641.000	2809.400

FINANCIAL RESULTS

The Company has achieved commencement of yarn dyeing and fabric weaving facilities at Tarapur and weaving at Islampur in Maharashtra during the FY 2011-12. The total turnover has increased to Rs.27349.600 Millions as compared to Rs.22548.400 Millions in the previous year. Exports were higher at Rs.13231.100 Millions as against Rs.11107.000 Millions previous year an increase of 19%.

The operating margins were improved but the net profit was under stress due to increased financial costs and depreciations because of expansion pans and higher interest rates.

SUBSIDIARY COMPANIES:

Bombay Rayon Holdings Limited (BRHL).

BRHL holds 100% equity of foreign subsidiaries BRFL Europe B.V., Netherlands and BRFL Italia S.r.l., Italy.

BRHL has registered a net profit of Rs.22.800 Millions for the year ended March 31, 2012.

DPJ Clothing Limited, U.K.

DPJ Clothing Limited is engaged in business of wholesale marketing and distribution of clothing Products. The said subsidiary is assisting in getting many mid size retailers of Europe by providing the services either by direct import or by import and delivery basis. Your Company continued to reap benefits in expanding its business in Europe.

DPJ Clothing Ltd has registered loss of GBP 221,000 for the year ended March 31, 2012.

BRFL Europe B.V., Netherlands.

BRFL Europe B.V. at Netherlands curtailed its operations to save costs and most of the larger customers are directly dealt from well established service facilities from India offices.

BRFL Europe B.V. has registered a loss of Euro 10,716 for the year ended March 31, 2012.

BRFL Italia S.r.l, Italy.

The Company owns the popular 'GURU' brand and is into the business of retailing of readymade garments as well as other accessories in Europe.

The economic environment in that part of world is gloomy and to keep the business operations fit, the activities are restructured.

BRFL Italia S.r.l, Italy has registered a net loss of Euro 6.09 million for the year ended March 31, 2012.

STI India Limited (STI).

The Company is running the unit of STI on job work basis for the manufacturing of yarn and knitted fabric. The part of manufactured yarn is used for in-house consumption and balance is sold.

STI has registered a net profit of Rs.1.518 Millions ended March 31, 2012.

(vi) BRFL Bangladesh Private Limited (BRFL Bangladesh).

The Company has been incorporated but operations yet to commence.

In accordance with general circular issued by the Ministry of Corporate Affairs, Government of India, the Balance Sheet, Profit and Loss Account and other documents of the subsidiary companies are not being attached with the Balance Sheet of the Company. The Company will make available the Annual Accounts of the Subsidiary Companies and the related detailed information to any member of the Company and the Subsidiaries who may be interested in obtaining the same.

The necessary disclosures are made in respect of the subsidiaries in this Annual Report alongwith the statement pursuant to Section 212 of the Companies Act, 1956.

As required by Section 212 of the Companies Act, 1956, the Statement of holding in subsidiaries and Consolidated Accounts pursuant to Accounting Standard (AS 21) issued by the Institute of Chartered Accountant of India, including the financial accounts of the subsidiary companies are forming part of the Annual Report. The Annual Accounts of the subsidiary companies will also be kept open for inspection at the Registered Office of the Company and that of the respective subsidiary companies.

GLOBAL SCENARIO

With the euro zone crisis showing no signs of abatement and the US economy slowing down, the cascading ripple effect of economic deceleration was felt across the globe. Heightened risk aversion and resultant slowing of capital flows adversely impacted developing economies. The growth rate of economies in India, China and Brazil - considered as important nations amongst the emerging and developing economies (EDE's) moderated during the year.

IMPACT ON INDIAN ECONOMY

The rate of growth of Indian economy moderated with the GDP growing by 6.6% during the year from a healthy above 8.4% recorded during each of the two preceding years. India, however, remains a front runner in economic growth despite the sluggish performance. Growth has moderated and fiscal balance has deteriorated due to tight monetary policy and expanded outlays. It is evident that the government is making best efforts to protect the financial system against all stress relating to recession in advanced economies.

The USD appreciated considerably against the Indian rupee on account of the EURO ZONE sovereign debt-repayment crisis. The industrial growth also exhibited sharp decline during the year. This is reflected by the IIP falling to 3.5% from 8.1% during the year 2010-11.

The sharp depreciation (~26%) of the rupee against the USD over the past 15 months has strengthened its position further, the Bangladeshi Taka has depreciated by only 13% against the USD.

GLOBAL AND INDIAN TEXTILE INDUSTRY

In line with strong domestic demand as well as huge export commitments, India and China are seen as world's leading players, in all segments of the textile value chain.

At present the industry contributes an impressive 14% to the industrial production, 4% to the GDP and 17% to the country's export earnings.

The current global textile and apparel industry has evolved with distinct consumption and production hubs. Production was earlier located in developed economies such as the USA and Europe, but over the years manufacturing has shifted to economies such as India, China and Bangladesh etc. due to the low cost advantage. Mature economies have now emerged as major consuming hubs while developing economies are still in the nascent stages of consumption.

Apparel exports to EU and USA is dominated by India's, accounting for almost 78 percent of India's total apparel exports in 2011. India's apparel exports to other markets(other than the EU and the USA) comprising of 22 percent was valued at US$ 2.8 billion in 2011. Countries like South Africa, countries of Latin America, Japan, South Korea and Australia hold immense potential for Indian apparels. It is estimated that India can increase its exports from 22 percent to 28 percent by 2016. However, to achieve this, a lot needs to be done to improve productivity and upgrade plants and machinery, especially through state-of-the-art weaving and processing facilities, Visualizing the above opportunity the management has backward integrated the company and increased the capacity of the company

OVERVIEW

Bombay Rayon Fashions Limited is one of the leading vertically integrated textile companies in India. The Company has a strong presence across the entire value chain from fibre to yarn to textile to garment and fashion. The Company manufactures a wide variety of fabrics and garments and is the largest manufacturer of shirts in the country. The Company operates through it's manufacturing facilities located in the state of Maharashtra, Karnatka, Tamilnadu and Kerla. The Company also has one sampling unit in Mumbai. The Company's current manufacturing capacity is 235 million meters of fabric and 88.8 million garment pieces supported by the state of the art infrastructure and designs.

The Company exports its high end designer garments to countries like the USA, the UK and rest of Europe. The Company has its own brand name marketed as Bombay Rayon, which is sold in domestic market and exported to Middle East and European countries.

CONTINGENT LIABILITIES

(Rs. in Millions)

Contingent Liabilities not provided for :	31.03.2012	31.03.2011
(a) Bills Discounted with Banks under Letter of Credits or otherwise.	97.500	513.800
(b) Bank Guarantees	77.600	39.300
(c) Disputed demand outstanding related to income tax (The matters are pending with Income Tax Authorities)	19.700	49.600

FIXED ASSETS

· Land

· Buildings

· Furniture and Fixtures

· Office equipment

· Motor Car and Vehicles

· Plant and Machinery

· Computer

AS PER WEBSITE DETAILS:

PROFILE:

Subject is a vertically integrated textile company, engaged in the manufacture of a wide range of fabrics and garments from state of the art production facilities. Apart from being the largest Shirt manufacturer in India, they have successfully evolved into a multi-fiber manufacturing company producing fabrics such as Cotton, Polyester, Tencel, Modal, Lycra, Wool and various blends. Their yarn dyed fabric, printing techniques, finishing, processing, weaving, stitching are a mark of excellence making every piece of fabric perfect. With fabric manufacturing facilities of 100 million meters per annum, garment manufacturing facilities of 60 million pieces per annum, being expanded to 90 million pieces per annum and a strong employee base of around 38,000; BRFL is today one of the most sought after brands in the Indian as well as International fashion markets.

Clothing is one of the strongest human desires. A desire to be different. A desire to look beautiful. A desire to be comfortable. A desire to make a statement. A desire that is fulfilled by that perfect piece of fabric called 'BRFL'. Woven with passion, their fabrics speak a story of novelty. BRFL has grown phenomenally and the reason has been their customers. Inspired towards betterment, they now possess the entire knowhow and technology for yarn dyeing, fabric weaving, processing and garment manufacturing. Subject is one of India’s most dynamic and professionally managed textile groups. No wonder, they are well renowned in the fashion export industry worldwide. With over 200 million meters per annum of fabric manufacturing facilities and over 45 million pieces per annum of garment manufacturing facilities, Subject is a rapidly growing textile company with over 32,000 employees.

MILESTONES:

1986 Bombay Rayon Group was established by Mr. Janardhan Agarwal.

1990 First fabric manufacturing facility came into existence in Maharashtra.

1998  Bombay Rayon group commenced export of fabrics.

2001 Garment division was launched.

2005 Bombay Rayon Groups business was consolidated into BRFL. The company made a successful IPO and is listed on all the stock exchanges in India. BRFL also acquired DPJ Clothing U.K., supplying to high street retailers in U.K.

2005 BRFL set up 7 garment manufacturing facilities in Bangalore with 7000 machines.

2007 BRFL acquired “Leela Scottish Lace” one of the largest garment manufacturing units set up in India, making BRFL one of the largest apparel groups in India.

2007 BRFL also acquired “LNJ Apparel” a 1000 machine specialized bottoms plant.

2007 BRFL marked the commencement of the mega USD 250 million textiles and garment project under a special MOU signed with the government of Maharashtra.

2008 BRFL acquired the iconic brand “Guru”.

2009 BRFL is sanctioned a fully integrated textile mill in Doddaballapur, Bengaluru with a capacity to process 1 Lakh meters/ day.

2010 BRFL establishes the world’s largest fabric processing capacity of 5 lakh meters/ day at Tarapore.

2010 BRFL acquires STI India Limited, a world class producer of 100% cotton yarn.

SUBSIDIARIES AND JOINT VENTURE

Bombay Rayon Holdings Limited (BRHL)

BRHL holds 100% equity of BRFL Italia SRL, Italy.

DPJ Clothing Limited, UK

DPJ Clothing Limited is engaged in business of wholesale marketing and distribution of clothing products. This subsidiary is assisting in getting many mid size retailers of Europe by providing the services either by direct import or by import & delivery basis.

BRFL Italia SRL, Italy

The Company owns the popular 'GURU' brand and is into the business of retailing of readymade garments as well as other accessories in Europe.

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 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.53.57
UK Pound	1	Rs.84.37
Euro	1	Rs.72.23

INFORMATION DETAILS

Report Prepared by :

BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	5
--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
TOTAL		53

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.