MIRA INFORM REPORT

Report Date :

01.03.2013

IDENTIFICATION DETAILS

Name :	SUDAR INDUSTRIES LIMITED
Registered Office :	Plot No.27 and 29, Village Paud, Mazgaon Road, Taluka: Khalapur, Khalapur – 410222, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	28.01.2002
Com. Reg. No.:	11-134707
Capital Investment / Paid-up Capital :	Rs.185.470 Millions
CIN No.: [Company Identification No.]	L18101MH2002PLC134707
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer and Exporter of Readymade Garments and Fabrics.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 4400000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Trade relations are reported as fair. Business is active. Payments terms are usually correct and as per commitment. The company can be considered for 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	ICRA
Rating	LONG TERM RATING : ICRA BB+
Rating Explanation	Moderate risk of default
Date	September, 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 :	Plot No.27 and 29, Village Paud, Mazgaon Road, Taluka: Khalapur, Khalapur – 410222, Maharashtra, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	cs@sudarindustries.com info@sudarindustries.com
Corporate Office :	Suite No. 901/902, 9th Floor, Great Eastern Summit, Plot No.66, Sector 15, CBD Belapur, Navi Mumbai – 400614, Maharashtra, India

DIRECTORS

As on 31.03.2012

Name :	Mr. Murugan Thevar
Designation :	Chairman and Managing Director
Name :	Mr. Venketraman Nadar
Designation :	Deputy Managing Director
Date of Birth/Age :	45 Years
Qualification :	Bachelor of Commerce
Name :	Mr. Venkatraman G.S.
Designation :	Executive Director
Date of Birth/Age :	53 Years
Qualification :	Bachelor of Commerce Masters of Commerce from Mumbai University Diploma in Production Engineering Diploma in Computer Programming and Mechanical Draftsmanship
Name :	Mr. Gopi Nair
Designation :	Whole-time Director
Name :	Mr. Rajkumar Dohare
Designation :	Independent Director
Date of Birth/Age :	39 Years
Qualification :	M.Com., MBA, CA
Name :	Mr. Sridhar Shetty
Designation :	Independent Director
Name :	Mr. Sagar Warekar
Designation :	Independent Director
Date of Birth/Age :	38 Years
Qualification :	Bachelor of Commerce
Name :	Mr. Ravikant Mhatre
Designation :	Independent Director
Date of Birth/Age :	41 Years
Qualification :	Bachelor of Commerce

KEY EXECUTIVES

Name :	Mr. Mustafa Badami
Designation :	Company Secretary and Compliance Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2012

Category of Shareholder	Total No. of Shares	% of Total Shareholding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	9203396	40.90
Sub Total	9203396	40.90
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	9203396	40.90
(B) Public Shareholding
(1) Institutions
Foreign Institutional Investors	85000	0.38
Sub Total	85000	0.38
(2) Non-Institutions
Bodies Corporate	7873810	34.99
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	633844	2.82
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	1547362	6.88
Any Others (Specify)	3157940	14.03
Clearing Members	3154384	14.02
Non Resident Indians	3556	0.02
Sub Total	13212956	58.72
Total Public shareholding (B)	13297956	59.10
Total (A)+(B)	22501352	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)	22501352	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Readymade Garments and Fabrics.

Products :

Product Description	Item Code No.:
Shirts	6105/6/9
Toursers	6205/6/7

PRODUCTION STATUS (As on: 31.03.2012)

Particulars	Unit	Actual Production
Shirt	Nos.	2858769
Trousers	Nos.	765698
Others	Nos.	1858245

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Union Bank of India

· State Bank of India

· Vijaya Bank

· Shamrao Vithal Co-operative Bank Limited

· Bank of India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
TERM LOANS
FROM BANKS
ICICI Bank (Secured By Vehicle No MH-06 AN 3099 SKODA)	0.029	0.121
Union Bank of India Vehicle Loan (Indica) (Secured By Vehicle ( (Cheverolet) No MH-43 AJ - 8681)	1.210	0.000
Union Bank of India Vehicle Loan (Indica) (Secured By Vehicle ( (Cheverolet) No MH-43 AJ - 8682)	1.208	0.000
State Bank of India (Secured by Land and Building and Plant and Machinery of the company)	279.572	0.000
Union Bank of India (Secured by Plant and Machinery of the company)	47.667	57.704
Shamrao Vithal Co-operative Bank Limited (Secured by Land and Building and Plant and Machinery of the company)	76.968	315.976
Vijaya Bank	0.000	32.501
		0
LOANS REPAYABLE ON DEMAND		0
FROM BANKS		0
CASH CREDITS		0
From Shamrao Vithal Co-operative Bank Limited	63.671	69.631
From State Bank of India	19.013	0.000
From State Bank of India	332.666	0.000
From Bank of India	150.210	0.000
From Union Bank of India	79.735	95.145
From Vijaya Bank (Colaba Bra.)	0.000	68.944
Total	1051.949	640.022

Banking Relations :	--
Auditor 1 :
Name :	Suresh Hegde and Company Chartered Accountants
Auditor 2 :
Name :	J. S. Uberoi and Company Chartered Accountants

CAPITAL STRUCTURE

After 27.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
22501352	Equity Shares	Rs.10/- each	Rs.225.013 Millions

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
18546975	Equity Shares	Rs.10/- each	Rs.185.470 Millions

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		185.470	185.470	94.590
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		934.995	777.914	99.184
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1120.465	963.384	193.774
LOAN FUNDS
1] Secured Loans		1051.950	640.022	254.613
2] Unsecured Loans		31.677	16.765	36.266
TOTAL BORROWING		1083.627	656.787	290.879
DEFERRED TAX LIABILITIES		0.000	3.788	3.775
TOTAL		2204.092	1623.959	488.428
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		810.904	252.767	264.412
Capital work-in-progress		139.328	234.439	12.000
INVESTMENT		23.097	29.390	34.784
DEFERREX TAX ASSETS		8.405	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	120.733	108.427
	Sundry Debtors	952.054	330.131
	Cash & Bank Balances	149.593	281.971
	Other Current Assets	0.000	0.000
	Deposit, Loans & Advances	164.857	433.966
Total Current Assets		1387.237	1154.495	276.078
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	165.482	48.096	79.818
	Other Current Liabilities	0.307	0.308	0.554
	Provisions	0.000	0.000	18.474
Total Current Liabilities		165.789	48.404	98.846
Net Current Assets		1221.448	1106.091	177.232
MISCELLANEOUS EXPENSES		0.910	1.272	0.000
TOTAL		2204.092	1623.959	488.428

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1947.844	1156.241	528.664
		Other Income	2.580	0.093	12.064
		TOTAL (A)	1950.424	1156.334	540.728
Less	EXPENSES
		Cost of materials consumed	1545.924	975.431
		Changes in inventories of finished goods work-in-progress and Stock-in-Trade	(2.293)	(69.017)
		Employee benefits expense	18.649	11.172
		Other expenses	34.239	45.127
		Exceptional items	16.000	0.000
		TOTAL (B)	1612.519	962.713	449.351
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		337.905	193.621	91.377
Less	FINANCIAL EXPENSES (D)		103.369	50.990	16.359
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		234.536	142.631	75.018
Less/ Add	DEPRECIATION/ AMORTISATION (F)		34.339	31.996	10.591
	PROFIT BEFORE TAX (E-F) (G)		200.197	110.635	64.427
Less	TAX (H)		43.116	43.412	21.951
	PROFIT AFTER TAX (G-H) (I)		157.081	67.223	42.476
	Earnings Per Share (Rs.)		8.47	3.62	11.68

QUARTERLY RESULTS

PARTICULARS `	30.06.2012	30.09.2012	31.03.2012
	1^st Quarter	2^nd Quarter	3^rd Quarter
Audited / UnAudited	UnAudited	UnAudited	UnAudited
Net Sales	679.800	987.500	1264.500
Total Expenditure	549.900	846.400	980.300
PBIDT (Excl OI)	129.900	141.000	284.200
Other Income	0.000	0.000	0.000
Operating Profit	129.900	141.000	284.200
Interest	40.300	55.700	47.100
Exceptional Items	0.000	0.000	0.000
PBDT	89.700	85.400	237.100
Depreciation	12.300	13.900	54.100
Profit Before Tax	77.400	71.500	182.900
Tax	19.400	17.900	61.000
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	58.100	53.700	122.000
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	58.100	53.700	122.000

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	8.05	5.81	7.86
Net Profit Margin (PBT/Sales)	(%)	10.28	9.59	12.19
Return on Total Assets (PBT/Total Assets}	(%)	9.11	7.86	11.92
Return on Investment (ROI) (PBT/Networth)		0.18	0.11	0.33
Debt Equity Ratio (Total Debt/Networth)		0.97	0.68	1.50
Current Ratio (Current Asset/Current Liability)		8.37	23.85	2.79

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	No
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	No
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
TERM LOANS
- From other parties	31.677	16.765
Total	31.677	16.765

REVIEW OF OPERATION:

During the year, the Company achieved turnover of Rs.1950.425 Millions as against Rs.1156.335 Millions in previous year i.e. increase by Rs.791.603 Millions, as compared to the corresponding previous year. The Company earned Net Profit after Taxation amounting to Rs.157.081 Millions against Rs.69.834 Millions in previous financial year corresponding to 90% increase over previous year.

BUSINESS OUTLOOK:

Going ahead, they plan to strengthen their marketing presence in Tier II and III Indian cities and other key regions. The Company proposes to open 15 retail outlets in the next couple of years at various locations while launching new brands in the cities of South India, Gujarat and Maharashtra within the next couple of years.

They expect to increase their monthly garment output from approx 5 lacs units a month to around 8 lacs units per month through the course of 2012-13 following the increase in worker deployment. Considering that their plant has sufficient unutilized space, there is room for sustainable growth for the next three years without needing to move into a new location.

GLOBAL TEXTILE INDUSTRY

The global textile market grew 6.3 per cent in 2011 to USD 630.6 billion. In 2016, the global textile market is expected to reach USD 833.9 billion, an increase of 32.2 per cent over 2011. Fabric accounts for the largest segment of the global textile market, accounting for 82 per cent of the market's total value. Asia-Pacific accounts for 60.7 per cent of the global textile mills market value.

INDIAN TEXTILE INDUSTRY OVERVIEW

The Indian textiles industry plays an important role in the growth of the Indian economy. Apart from providing one of the basic necessities of life, the textiles industry also plays a pivotal role through its contribution to industrial output, employment generation, and the export earnings of the country.

Currently, it contributes about 14 per cent to industrial production, 4 per cent to the gross domestic product (GDP) and 17 per cent to the country's export earnings. It provides direct employment to over 35 million people and is the second-largest provider of employment after agriculture.

The Indian textiles industry is extremely varied, with the hand-spun and hand-woven sector at one end, and the capital-intensive, sophisticated mill sector at the other. The decentralised powerlooms/hosiery and knitting sector form the largest section of the textiles sector. The close linkage of the industry to agriculture and ancient culture, and traditions of the country make the Indian textiles sector unique compared with the textiles industries of other countries. This also provides the industry with the capacity to produce a variety of products suitable to different market segments, both within and outside the country.

The domestic textile industry comprises 1,608 spinning mills and 200 composite mills, with an installed capacity of 43.27 million spindles (33.25 million spindles in operation), 523,000 Open End Rotors (384612 operational) and 52,000 looms (14500 under operation) in the organised sector along with another 1,219 small-scale spinning units with 4.89 million spindles and about 242,023 rotors in the small scale decentralised sector.

FIXED ASSETS

· Air Condition

· Computer

· Office Equipment

· Electricity Installation

· Kala Genset

· Roots Multi Clean

· Sparkle Clean Tech

· Factory Premises

· Furniture and Fixtures

· Shop Premises

· Bus

· Machinery

· Motor Car

· Land

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.53.77
UK Pound	1	Rs.81.57
Euro	1	Rs.70.68

INFORMATION DETAILS

Report Prepared by :

BSN / VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.