MIRA INFORM REPORT

Report Date :

12.07.2013

IDENTIFICATION DETAILS

Name :	ARISUDANA INDUSTRIES LIMITED
Registered Office :	B-XXIX /143, Giaspura Road, G.T. Road, Ludhiana – 141003, Punjab
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	18.12.1995
Com. Reg. No.:	16-017453
Capital Investment / Paid-up Capital :	Rs. 74.000 Millions
CIN No.: [Company Identification No.]	U24123PB1995PLC017453
TAN No.: [Tax Deduction & Collection Account No.]	JLDA01602G
PAN No.: [Permanent Account No.]	AABCA2449K
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the manufacturing and processing of acrylic and polyester yarn and trading of Knitted Cloth.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 1000000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is promoted by the Khanna Family, Ludhiana (Punjab) It is an established company having moderate track record. There appears dip in the profitability and profit margin seems to be low during 2011-2012. However, networth appears to be good. The promoter seems to be well experienced businessmen. Trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with slight 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating: BBB-
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	10.06.2013

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.

LOCATIONS

Registered Office :	B-XXIX /143, Giaspura Road, G.T. Road, Ludhiana – 141003, Punjab, India
Tel. No.:	91-161-2542488/ 5028859/ 2536823
Fax No.:	91-161-2530015
E-Mail :	info@aruisudana.com
Website :	www.arisudana.com
Location :	Owned
Factory :	VPO, Jaspalon, Tehsil Khanna, Ludhiana – 141401, Punjab, India
Tel. No.:	91-1628-245104/ 245304

DIRECTORS

As on: 29.09.2012

Name :

Mr. Gagan Khanna

Designation :

Whole – Time Director

Address :

164/10, Singhpura, Barewal Colony Abadi, Ludhiana – 141001, Punjab, India

Date of Birth/Age :

31.10.1962

Qualification :

Graduate

Date of Appointment :

01.04.2010

PAN No.:

ACYPK9144R

DIN No.:

00601358

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	U24123PB1995PLC017453	ARISUDANA INDUSTRIES LIMITED	Whole-time director	01/04/2010	18/12/1995	-	Active	NO
2	U70109PB2011PTC034696	GOPALJEE LAND DEVELOPERS PRIVATE LIMITED	Director	17/02/2011	17/02/2011	-	Active	NO

Name :

Mr. Kewal Kumar Khanna

Designation :

Whole – Time Director

Address :

164/10, Singhpura, Barewal Colony Abadi, Ludhiana – 141001, Punjab, India

Date of Birth/Age :

20.06.1934

Qualification :

Under Graduate

Date of Appointment :

01.04.2010

PAN No.:

ALCPK0772G

DIN No.:

00601404

Name :

Mr. Sidharth Khanna

Designation :

Whole – Time Director

Address :

164/10, Singhpura, Barewal Colony Abadi, Ludhiana – 141001, Punjab, India

Date of Birth/Age :

03.11.1987

Qualification :

Post Graduate

Date of Appointment :

06.04.2010

PAN No.:

AQPRK7438P

DIN No.:

03081356

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	U24123PB1995PLC017453	ARISUDANA INDUSTRIES LIMITED	Whole-time director	06/04/2010	06/04/2010	-	Active	NO
2	U70109PB2011PTC034696	GOPALJEE LAND DEVELOPERS PRIVATE LIMITED	Director	17/02/2011	17/02/2011	-	Active	NO

Name :

Mr. Surinder Mohan Jalota

Designation :

Director

Address :

Olympic Wollen Mills, Chandigarh, Road, Ludhiana – 141008, Punjab, India

Date of Birth/Age :

29.03.1939

Qualification :

Graduate

Date of Appointment :

07.05.2002

DIN No.:

00871110

Name :

Mr. Hariesh Chander Kaura

Designation :

Whole – Time Director

Address :

304 G, BRS Nagar, Ludhiana, Punjab, India

Date of Birth/Age :

25.02.1964

Date of Appointment :

01.04.2009

DIN No.:

01271528

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Gagan Khanna	2848520
Kawel Khanna	806960
Nomita Khanna	623680
Sidharth Khanna	2785580
Dspuri	380
Hkaura	480
Suresh Chowdry	38000
Sanjiv Sharma	38000
Sushma Aggarwal	38000
Sandeep Aulakh	30400
Harish Arora	190000
Total	7400000

As on: 30.03.2013

Names of Allottees	No. of Shares Allotted
Gagan Khanna	155712
Gagan Khanna (HUF)	129757
Kewal Kumar Khanna	519031
Kewal Kumar Khanna (HUF)	103806
Sidharth Khanna	129757
Total	1038063

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Directors or relatives of directors	98.00
Other top fifty shareholders	2.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the manufacturing and processing of acrylic and polyester yarn and trading of Knitted Cloth.

Products :

ITC Code	Product Description
54034190	Yarn

PRODUCTION STATUS (AS ON 31.03.2012)

Particulars	Actual Production
Acrylic yarn	1813478.500
Acrylic Waste	24172.300*
Polyester Yarn	6409106.345
Polyester/Viscoce waste	142988.400
Viscose Yarn	50.000
PV Yarn	255.000
PC Yarn	466.000

* includes 4479.700 kgs re-used for production of Acrylic yarns) @ consists of reprocessing of yarn

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Bank of India, Industrial Area Branch, Dhandari Kalan, Ludhiana - 141010, Punjab, India

Tel No.: 91-161-2510345

· Bank of India, Mid Corporate Branch, Model Town, Ludhiana - 141002, Punjab, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Term loans from banks	116.509	114.852
Loans repayable on demand from banks (Secured by hypothecation of current assets)	67.842	94.360
Total	184.351	209.212

Banking Relations :	--
Auditors :
Name :	Dass Khanna and Company Chartered Accountants
Address :	B-XX-2815, Gurdev Nagar, Pakhowal Road , Ludhiana – 141001, Punjab, India
Tel. No.:	91-161-2403029
Fax No.:	91-161-2409672
PAN No.:	AABED5151G
Other Related Parties :	Gopaljee Spinners

CAPITAL STRUCTURE

After: 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
11000000	Equity Shares	Rs.10/- each	Rs. 110.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8438063	Equity Shares	Rs.10/- each	Rs. 84.381 Millions

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
8000000	Equity Shares	Rs.10/- each	Rs. 80.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7400000	Equity Shares	Rs.10/- each	Rs. 74.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	74.000	74.000
(b) Reserves & Surplus	182.633	181.077
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	256.633	255.077
(3) Non-Current Liabilities
(a) long-term borrowings	235.008	146.482
(b) Deferred tax liabilities (Net)	12.208	16.370
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	2.047	1.838
Total Non-current Liabilities (3)	249.263	164.690
(4) Current Liabilities
(a) Short term borrowings	67.841	94.360
(b) Trade payables	34.988	23.715
(c) Other current liabilities	48.385	44.198
(d) Short-term provisions	0.781	0.596
Total Current Liabilities (4)	151.995	162.869
TOTAL	657.891	582.636
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	253.258	292.891
(ii) Intangible Assets	0.351	0.000
(iii) Capital work-in-progress	22.098	0.141
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	4.683	4.683
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	77.723	54.421
(e) Other Non-current assets	0.000	0.362
Total Non-Current Assets	358.113	352.498
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	112.805	146.210
(c) Trade receivables	136.564	57.113
(d) Cash and cash equivalents	18.109	0.958
(e) Short-term loans and advances	21.433	16.407
(f) Other current assets	10.867	9.450
Total Current Assets	299.778	230.138
TOTAL	657.891	582.636

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		74.000
2] Share Application Money		0.000
3] Reserves & Surplus		194.128
4] (Accumulated Losses)		0.000
NETWORTH		268.128
LOAN FUNDS
1] Secured Loans		197.311
2] Unsecured Loans		42.052
TOTAL BORROWING		239.363
DEFERRED TAX LIABILITIES		0.000
TOTAL		507.491
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		302.752
Capital work-in-progress		0.000
INVESTMENT		4.684
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	113.180
	Sundry Debtors	27.692
	Cash & Bank Balances	0.922
	Other Current Assets	0.000
	Loans & Advances	83.490
Total Current Assets		225.284
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	17.000
	Other Current Liabilities	8.673
	Provisions	0.000
Total Current Liabilities		25.673
Net Current Assets		199.611
MISCELLANEOUS EXPENSES		0.444
TOTAL		507.491

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1345.481	1091.973	847.794
		Other Income	0.708	0.263	9.371
		TOTAL (A)	1346.189	1092.236	857.165
Less	EXPENSES
		Cost of materials consumed	959.929	881.354
		Purchases of stock-in-trade	183.334	7.385
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(51.121)	(23.409)	794.682
		Employee benefit expense	13.336	13.514
		Other expenses	163.929	137.170
		TOTAL (B)	1269.407	1016.015	794.682
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		76.782	76.221	62.483
Less	FINANCIAL EXPENSES (D)		25.045	21.598	16.439
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		51.737	54.623	46.044
Less/ Add	DEPRECIATION/ AMORTISATION (F)		49.253	45.456	42.204
	PROFIT BEFORE TAX (E-F) (G)		2.484	9.167	3.840
Less	TAX (H)		0.938	5.499	2.500
	PROFIT AFTER TAX (G-H) (I)		1.546	3.668	1.340
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		75.596	68.928	67.588
	BALANCE CARRIED TO THE B/S		74.142	75.596	68.928
	TOTAL EARNINGS		122.569	65.429	64.408
	TOTAL IMPORTS		5.885	4.264	39.436
	Earnings Per Share (Rs.)		0.21	0.66	0.21

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.11	0.34	0.16
Net Profit Margin (PBT/Sales)	(%)	0.18	0.84	0.45
Return on Total Assets (PBT/Total Assets}	(%)	0.39	1.58	0.73
Return on Investment (ROI) (PBT/Networth)		0.01	0.04	0.02
Debt Equity Ratio (Total Debt/Networth)		1.19	0.95	0.89
Current Ratio (Current Asset/Current Liability)		1.97	4.05	8.77

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOAN

(Rs in Millions)

Particular	As on 31.03.2012	As on 31.03.2011
Term loans	6.242	0.000
Loans and advances from directors	112.256	31.631
Total	118.498	31.631

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U24123PB1995PLC017453
Name of the company	ARISUDANA INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	B-XXIX /143, Giaspura Road, G.T. Road, Ludhiana – 141003, Punjab, India info@aruisudana.com
This form is for	Creation of charge
Type of charge	Immovable property Book debts Movable property (not being pledge) Others (Stocks)
Particular of charge holder	Bank of India, MID Corporate Branch, Model Town, Ludhiana – 141002, Punjab, India mcb.ludhiana@bankofindia.co.in
Nature of instrument creating charge	Hypothecation cum loan agreement ( plant & Machinery, stock and book debts) IFD/X
Date of instrument Creating the charge	01.02.2012
Amount secured by the charge	Rs.711.100 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 2.25% above the base rate (10.75% floating), presently 13% at monthly rests. Terms of Repayment TL are repayable in monthly installments as per repayment schedule. WC Limits are repayable on demand. Margin TL IV-34% TL V- 29% TL VI-20.88% CC Stock-25%, CC- BD 90 days--30% EPC 25% IBP/FBP/FBD-DP/DA 90--nil LC-DP/DA 90 DAYS --10% Capex FLC--15% Extent and Operation of the charge 100% Others TLIV- Rs.30.700 Millions, TL V-- Rs.100.400 Millions and TL VI-- Rs.360.000 Millions. One Time Capex LC( Foreign) within the TL for Rs.110.000 Millions. The overall WC Limit of Rs.220.000 Millions is divided as under: CC- Stock- 220.000 Millions, CC Stock- Rs. 100.000 Millions, EPC—Rs.80.000 Millions, IBP/FBP/FBD-DP/DA 90days--- Rs.80.000 Millions. Max. WCFBL—Rs.220.000 Millions. NFB LC(I/F) DP-DA- 90 days within WCFBL—Rs.20.000 Millions.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Exclusive charge on factory land and Building, Plant and Machinery and other micellenous. fixed assets. Equitable mortgage of Land and Building at Jaspalon, Ludhiana measuring 104 Kanal 18 Merlas and Gaispura Ludhiana measuring 14 kanal 10 marlas as per detail given in schedules. Exclusive Hypothecation charge of stock and book debts.

FIXED ASSETS

• Land
• Building
• Machinery
• Furniture and Fixtures
• Office Equipments
• Plant and Equipments
• Computer Software’s

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. 59.64
UK Pound	1	Rs. 90.13
Euro	1	Rs. 77.99

INFORMATION DETAILS

Report Prepared by :

DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		36

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.