MIRA INFORM REPORT

Report Date :

23.05.2013

IDENTIFICATION DETAILS

Name :	ARVIND LIMITED (w.e.f. 14.07.2008)
Formerly Known As :	ARVIND MILLS LIMITED
Registered Office :	Naroda Road, Railwaypura Post, Ahmadabad – 380025, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	01.06.1931
Com. Reg. No.:	04-000093
Capital Investment / Paid-up Capital :	Rs.2580.431 millions
CIN No.: [Company Identification No.]	L17119GJ1931PLC000093
TAN No.: [Tax Deduction & Collection Account No.]	AHMT00462A
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer, Exporter and Importer of Textile Fabric.
No. of Employees :	1800 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (65)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 80800000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a flagship company of Lalbhai Group. It is an old and well established company having good track. It has achieved a healthy growth in its sales turnover and profits during 2012 over last year. Financial position of the company appears strong. Directors are reported to be well experienced and knowledgeable businessmen. Trade relations are reported as trustworthy. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good 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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities: A-
Rating Explanation	Adequate degree of safety and low credit risk.
Date	December, 2011

Rating Agency Name	CARE
Rating	Short term bank facilities: A2+
Rating Explanation	Strong degree of safety and low credit risk.
Date	December, 2011

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/ Corporate Office/ Secretarial Department:	Naroda Road, Railwaypura Post, Ahmadabad – 380025, Gujarat, India
Tel. No.:	91-79-22121408 / 22203030 / 22200206 / 22208000 / 30138000/ 30138108-9
Fax No.:	91-79-22124314 / 22120267 / 22371396 / 22372342 / 22379184 / 22201608 / 22201270 / 30138680/ 30138668
E-Mail :	india@arvindmills.com investor@arvind.com rv.bhimani@arvind.in feedback@arvind.com
Website :	http://www.arvind.com
Factory 1 :	Lifestyle Fabrics–Denim, Naroda Road, Ahmedabad - 380025, Gujarat, India
Tel. No.:	91-79-30138000 / 30138181
Fax No.:	91-79-30138671
E-Mail :	subir.mukherjee@arvind.in
Factory 2 :	Lifestyle Fabrics–Shirting, Khakis and Knitwear, Santej, PO Khatrej, Taluka Kalol, Dist. Gandhinagar-382721, Gujarat, India
Tel. No.:	91-2764-395560
Fax No.:	91-2764-395040
E-Mail :	pranav.dave@arvind.in
Factory 3 :	Lifestyle Apparel–Knits, Santej, PO Khatrej, Taluka Kalol, District Gandhinagar - 382721 , Gujarat, India
Tel. No.:	91-2764-395410
E-Mail :	nitin.seth@arvind.in
Factory 4 :	Lifestyle Apparel–Shirts, No. 23/1, Sonnenahalli Villege, Sitaram Palya Cross, ITPL Road, Brook field, Mahadevpura Post, Bangalore - 560048, India
Tel. No.:	91-80-33717000
E-Mail :	ashish.kumar@arvindexports.com
Factory 5 :	Lifestyle Apparel–Jeans, 26/2, 27/2 Kenchenahaili, Mysore Road, Near Bangalore University, Bangalore-560059, India
Tel. No.:	91-80-33719000
E-Mail :	ashish.kumar@arvindexports.com
Factory 6 :	Arvind Intex, Rajpur Road, Gomtipur, Ahmedabad - 380021, Gujarat, India
Factory 7 :	Ankur Textiles, Outside Raipur Gate, Ahmedabad - 380022, Gujarat, India
Tel. No.:	91-79-30137200 / 30137231
Fax No.:	91-79-30137231
E-Mail :	brijesh.bhati@arvind.in
Factory 8 :	Arvind Polycot, Khatrej, Taluka Kalol, Dist. Gandhinagar- 382721, Gujarat, India
Factory 9 :	Arvind Cotspin, D-64, MIDC, Gokul Shirgaon, Tal. Karveer, Kolhapur - 416234, Maharashtra, India
Branch Office 1 :	Mumbai Neptune House, 2nd Floor, Opposite Bandra Talkies, SV Road, Mumbai – 400050, Maharashtra, India
Tel. No.:	91-22-26513367/68/69
Fax No.:	91-22-26513472
Branch Office 2 :	Delhi 8 Community Centre, Saket, New Delhi– 110017, India
TeleFax :	91-11-51664620/24
Branch Office 3 :	Bangalore Grace Mansion, 25 Infantry Road, Bangalore – 560001, Karnataka, India
Tel. No.:	91-80-22865117/7697
Fax No.:	91-80-22860564
Branch Office 4 :	Kolkata 100, Park Street, Laxmi Nivas, 2nd Floor, Kolkata , West Bengal, India
TeleFax :	91-33-22835792
Branch Office 5 :	International Offices USA Arvind Worldwide (USA) Inc., 130, West 42^nd Street, Suite No. 603, 6th Floor, NY 10036, New York, USA
Tel. No.:	001-212-768-4815
Fax No.:	001-212-768-7378
Branch Office 6 :	Sri Lanka Sri Lanka Liason Office, 207/24, 2/2 Dharmapala Mawatha, Colombo, Sri Lanka
TeleFax :	0094-11-2678564
Branch Office 7 :	Bangladesh C/o Sidko Limited 7th Floor, Paragon House , Mohakali Commercial Area, Dhaka – 1212, Bangladesh
Tel. No.:	8802-9881794
Fax No.:	8802-9883400
Branch Office 8 :	Sharda Trust Asoka Spintex Premises, Naroda Road, Ahmedabad – 380025, Gujarat, India
Tel. No.:	91-79-22200817/3266
Fax No.:	91-79-22200457
Garment Export Division :	10^th Floor, Du Parc Trinity, 17 MG Road, Bangalore -560001, Karnataka, India
Overseas Office 1 :	Arvind Worldwide Inc. 130, West, 42^nd Street, Suite 603, 6^th Floor, New York, New York -10036, USA
Tel No.:	+(212)768-4815
E mail:	raju@arvindusa.com
Overseas Office 2 :	Arvind Limited Unit : 1705, 17^th Floor, Rendy Centre, 682-684, Castle Peak Road, Cheung Sha Wan, Kowloon, Hong Kong
Telefax :	00852-35283112
E-Mail :	arvindmills@netvigator.com
Overseas Office 3:	Arvind Limited Plot No.221 Bir Uttam Mir Shawkat Road, (Gulshan – Tejgaon Link Road) Tejgaon I/A, Dhaka – 1208, Bangladesh
Tel No.:	880-2-9887123 / 124
E-Mail :	p.anilkumar@arvind.com

DIRECTORS

As on 31.03.2012

Name:		Mr. Sanjay S. Lalbhai
Designation:		Chairman and Managing Director
Qualification:		Science Graduate, Master’s Degree in Business Management
Date of Joining:		March, 1977
Name:		Mr. Jayesh K. Shah
Designation:		Director and Chief Financial Officer
Qualification:		Commerce Graduate Chartered Accountant
Date of Joining:		01.07.1993
	Name :	Mr.Punit S. Lalbhai
	Designation :	Executive Director
	Name :	Mr.Kulin S. Lalbhai
	Designation :	Executive Director
	Name :	Mr. Sudhir Mehta
	Designation :	Director
	Name :	Dr. Bakul Dholakia
	Designation :	Director
	Name :	Mr. Munesh Khanna
	Designation :	Director
Qualification :		Chartered Accountant
	Name :	Ms. Renuka Ramnath
	Designation :	Director
	Name :	Mr. G.M. Yadwadkar
	Designation :	Nominated by IDBI Bank Limited
	Name :	Mr. Prabhakar Dalal
	Designation :	Nominated by Export-Import Bank of India

KEY EXECUTIVES

Name :	Mr. R.V. Bhimani
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2012

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2385458	0.93
Bodies Corporate	111000062	43.09
Sub Total	113385520	44.02
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	113385520	44.02
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	31148254	12.09
Financial Institutions / Banks	579800	0.23
Central Government / State Government(s)	22	0.00
Insurance Companies	17138995	6.65
Foreign Institutional Investors	42613684	16.54
Any Others (Specify)	1213	0.00
Foreign Bank/IFCW	1213	0.00
Sub Total	91481968	35.51
(2) Non-Institutions
Bodies Corporate	5791681	2.25
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	36559192	14.19
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	8102320	3.15
Any Others (Specify)	2268116	0.88
NRIs/OCBs	1928857	0.75
Trusts	3364	0.00
Clearing Members	335895	0.13
Sub Total	52721309	20.47
Total Public shareholding (B)	144203277	55.98
Total (A)+(B)	257588797	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	454272	0.00
Sub Total	454272	0.00
Total (A)+(B)+(C)	258043069	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Textile Fabric.

Products :

Product Description	Item code No.
Denim	52094200
Woven Fabrics of Cotton weighting not more than 200g/m2	52080000
Mens/ Boys Trousers/ Pants and Shorts	62034200
Mens/ Boys Shirts	62052000

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Installed Capacity
Spindles	72872
Rotors	5472
Knitting Machines	116
Looms	1162
EPBAX / RAX System Lines	200000
Garments (Pcs.)	13120000

Note:

1. The company is exempt from the licensing provisions of the Industrial (Development and Regulation) Act, 1951
2. Installed Capacity is as certified by the management and relied upon by the auditors, being a technical matter.

Particulars	Unit	Actual Production (Quantity in millions)
Cloth *	Meters	138.200
Cloth **	Kgs.	3.200
Yarn ***	Kgs.	0.100
EPBAX	Lines	0.200
Garments ****	Nos.	12.900
Yarn @	Kgs.	0.800
Grey @	Meters	0.600
Grey @	Kgs.	(443310.000)

*Net of internal consumption of 9.500 Millions (3.900 Millions) Meters

**Net of internal consumption of 1.00 Millions (2.500 Millions) Kgs

***Net of internal consumption of 6.900 Millions (6.800 Millions) Kgs

****Includes Garments produced outside the company by job workers, Net of Internal Consumption of (7478) Pcs.

 @ Semi Processed Goods meant for sale

Note:

Quantity of cloth shown in opening stock, production and closing stock is packed cloth only and does not include loose finished cloth lying in folding/ stamping department.

GENERAL INFORMATION

No. of Employees :

1800 (Approximately)

Bankers :

· State Bank of India

· Bank of Baroda

· UCO Bank

· State Bank of Patiala

· HDFC Bank Limited

· Standard Chartered Bank

· ICICI Bank Limited

· Export-Import Bank of India

· Axis Bank Limited

· State Bank of Hyderabad

· IDBI Bank Limited

· Canara Bank

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
From Banks	6034.600	6389.900
From Financial Institutions and Others	1013.100	1438.300
Working Capital Loans repayable on demand from Banks	8559.600	7777.300
Total	15607.300	15605.500

Banking Relations :	--
Auditors :
Name :	Sorab S. Engineer and Company Chartered Accountants
Address :	Ismail Building 381, Dr. D. Naoroji Road Fort, Mumbai-400 001, Maharashtra, India
Subsidiary Companies:	· Asman Investment Limited · The Anup Engineering Limited · Arvind Retail Limited · Arvind Lifestyle Brands Limited · Arvind Accel Limited · Syntel Telecom Limited · Arvind Infrastructure Limited · Arvind Brands and Retail Limited · Arvind Envisol Private Limited · Arvind PD Composites Private Limited · Arvind Worldwide Inc., USA · Arvind Worldwide (M) Inc., Mauritius · Arvind Overseas (M) Limited, Mauritius · Arvind Spinning Limited, Mauritius · Arvind Textile Mills Limited, Bangladesh
	·
Joint Venture/Limited Liability Partnership:	· Arya Omnitalk Wireless Solutions Private Limited · Tommy Hilfiger Arvind Fashions Private Limited (Formerly known as Arvind Murjani Brands Private Limited) · Arya Omnitalk Radio Trunking Services Private Limited · Arudrama Developers Private Limited · Arvind Bsafal Homes LLP · Ahmedabad East Infrastructure LLP · Arvind and Smart Value Homes LLP
Company under the control of Key Managerial Personnel:	Aura Securities Private Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
565000000	Equity Shares	Rs.10/- each	Rs.5650.00 Millions
10000000	Preference Shares	Rs.100/- each	Rs.1000.000 Millions
	Total		Rs.6650.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
254633441	Equity Shares	Rs.10/- each	Rs.2546.300 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
254633441	Equity Shares	Rs.10/- each	Rs.2546.300 Millions
	Add: 900 Shares (Rs.45000.000 Millions Originally Paid up)		Rs.34.100 Millions
	Total		Rs.2580.400 Millions

Reconciliation of Number of Equity Shares

	31.03.2012
	No. of Shares	Rs. in Millions
Balance at the beginning of the year	254,400,041	2544.000
Add :
Shares alloted persuant to conversion of warrants	-	-
Shares alloted persuant to exercise of Employee Stock Option Plan	232,500	2.300
Balance at the end of the year	254,632,541	2546.300

Rights, Preferences and Restrictions attached to Shares

Equity Shares:

The Company has one class of shares referred to as equity shares having a par value of Rs.10 each. Each shareholder is entitled to one vote per share held. The dividend 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, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding

Details of Shares held by Shareholders holding more than 5% of the aggregate shares in the Company

Particulars	31.03.2012
Aura Securities Private Limited	85738882
	33.67%
Life Insurance Corporation of India	16558953
	6.50%

Proposed Dividend

The final dividend proposed for the year is as follows:

Particulars	31.03.2012
On Equity Shares of Rs.10/- each
Dividend per Equity Share (Rs.)	1
Percentage of Dividend Proposed	10%

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		2580.400	2544.000	2395.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		17621.500	15411.100	11804.500
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		20201.900	17955.100	14200.000
LOAN FUNDS
1] Secured Loans		15607.300	15605.500	17287.300
2] Unsecured Loans		425.700	391.200	1418.500
TOTAL BORROWING		16033.000	15996.700	18705.800
DEFERRED TAX LIABILITIES		128.200	128.200	128.200
TOTAL		36363.100	34080.000	33034.000
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		22690.600	19849.900	19181.100
Capital work-in-progress		1791.000	807.800	468.600
INVESTMENT		3371.100	3263.400	3002.900
DEFERRED TAX ASSETS		0.000	0.000	0.000
Foreign Currency Monetary Item Transaction Difference in Account		--	--	(10.600)
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	7284.200	6991.600	4320.000
	Sundry Debtors	4055.500	5636.300	4241.600
	Cash & Bank Balances	393.700	290.900	431.400
	Other Current Assets	2624.000	1352.800	959.000
	Loans & Advances	4039.600	4399.300	4848.000
Total Current Assets		18397.000	18670.900	14800.000
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6316.700	6040.400	3478.400
	Other Current Liabilities	2129.100	2355.300	855.800
	Provisions	1440.800	116.300	73.800
Total Current Liabilities		9886.600	8512.000	4408.000
Net Current Assets		8510.400	10158.900	10392.000
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		36363.100	34080.000	33034.000

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	34941.200	26832.600	22524.900
		Operating Income	--	--	644.000
		Other Income	1358.100	520.700	118.300
		TOTAL (A)	36299.300	27353.300	23287.200
Less	EXPENSES
		Cost of materials and accessories consumed	15687.600	12901.500	20074.500
		Purchases of Stock in Trade	374.000	311.000
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	42.800	(879.000)
		Employee benefits expense	3605.100	2739.000
		Other expenses	10219.300	7898.900
		Extraordinary Items	(2518.000)	0.000
		TOTAL (B)	27410.800	22971.400	20074.500
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		8888.500	4381.900	3212.700
Less	FINANCIAL EXPENSES (D)		2702.500	1872.300	1554.700
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6186.000	2509.600	1658.000
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1305.100	1161.600	1138.000
	PROFIT BEFORE TAX (E-F) (G)		4880.900	1348.000	520.000
Less	TAX (I)		538.600	0.000	0.000
	PROFIT AFTER TAX (G-I) (J)		4342.300	1348.000	520.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		4501.200	3144.200	2823.400
Less	ADJUSTMENT DUE TO DEMERGER		--	--	4.300
Less	APPROPRIATIONS
		Proposed dividend on Equity Shares for the year	258.000	0.000	194.900
		Dividend distribution tax on Proposed dividend on Equity Shares	41.900	0.000
		Transferred from Debenture Redemption Reserve	0.000	(9.000)
	BALANCE CARRIED TO THE B/S		8543.600	4501.200	3144.200
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods on FOB basis	14871.000	11343.800	10614.600
		Better Cotton Grant	24.500	3.000	0.000
	TOTAL EARNINGS		14895.500	11346.800	10614.600
	IMPORTS
		Capital Goods	1577.200	485.800	65.300
		Dyes and Chemicals, Stores and Spare Parts	612.700	665.400	497.600
		Raw Materials and Accessories	1233.700	552.200	809.700
		Finished Goods	0.000	0.000	0.000
	TOTAL IMPORTS		3423.600	1703.400	1372.600
	Earnings Per Share (Rs.)
	Basic		16.83	5.64	2.27
	Diluted		16.83	5.63	2.07

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012	31.03.2013
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	8520.700	9590.500	9705.400	9986.300
Total Expenditure	7311.200	8179.900	8218.600	8347.600
PBIDT (Excl OI)	1209.500	1410.600	1486.800	1638.700
Other Income	243.000	284.800	258.300	269.800
Operating Profit	1452.500	1695.400	1745.100	1908.500
Interest	629.200	674.000	703.600	677.600
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	823.300	1021.400	1041.500	1230.900
Depreciation	361.800	373.400	383.000	386.700
Profit Before Tax	461.500	648.000	658.500	844.200
Tax	6.900	0.000	0.000	(6.900)
Provisions and Contingencies	0.000	0.000	0.000	0.000
Profit After Tax	454.600	648.000	658.500	851.100
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustment	0.000	0.000	0.000	0.000
Net Profit	454.600	648.000	658.500	851.100

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	11.96	4.93	2.23
Net Profit Margin (PBT/Sales)	(%)	13.97	5.02	2.31
Return on Total Assets (PBT/Total Assets}	(%)	11.88	3.50	1.53
Return on Investment (ROI) (PBT/Networth)		0.24	0.08	0.04
Debt Equity Ratio (Total Debt/Networth)		0.79	0.89	1.32
Current Ratio (Current Asset/Current Liability)		1.86	2.19	3.36

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	No
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

COMPANY BACKGROUND

Subject is one of the India’s leading vertically integrated textile companies with the presence of almost eight decades in this industry. It is among the largest denim manufacturers in the world. It also manufactures a range of cotton shirting, denim, knits and bottom weights (Khakis) fabrics and Jeans and Shirts Garments. Arvind, through its subsidiary company Arvind Lifestyle Brands Limited, is marketing in India the branded apparel under various brands and is also licensee in India for various international brands. The brands portfolio of the company includes International brands like Arrow, US Polo, Izod, Elle, Cherokee etc. Through another subsidiary company, Arvind Retail Limited, Arvind operates apparel Value Retail stores MEGAMART. Arvind also has the presence in Telecom business directly and through joint venture companies.

UNSECURED LOAN

Unsecured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
From Financial Institutions and Others	25.800	25.800
Deferred Electricity Duty	0.000	83.800
Finance Lease Obligation	0.000	0.000
Under Buyer’s Credit Arrangement from Banks	380.700	267.800
Intercorporate Deposits
From Related Parties	4.200	3.600
From Others	15.000	10.200
Total	425.700	391.200

OPERATIONS

The Financial year 2011-12 was extremely challenging year for their company. The year was characterized by global slowdown, weak retail demand at home, high volatility in cotton prices and foreign exchange and higher interest cost. It is satisfying to note that in the backdrop of such a challenging environment, their Company has closed the financial year 2011-12 with 30% growth in sales and 28% growth in Operating Earnings before Interest Depreciation and Taxes (Operating EBITDA). PAT (excluding Exceptional Income) has shown a growth of 75% compared to the previous year.

FINANCE

During the year, the Company has repaid the installments of Term Loans amounting to Rs. 4010.000 Millions falling due during the current year. The Company has also made fresh borrowings of Rs. 2230.000 Millions for funding capital expenditure and other requirements. Long Term Debt including lease of the Company stands to Rs. 8290.000 Millions as on 31st March, 2012.

OVERVIEW OF THE ECONOMY

Year 2011-12 witnessed a confluence of multiple domestic and global factors impacting the macro-economic scenario in India which negatively affected the image of the country as an attractive investment destination

in the short term. The factors varied from, lack of consensus within the government for pushing reforms, large fiscal slippage, deterioration in governance, persistently high WPI inflation for majority of the year, to turmoil in the euro zone and questionable outlook of the US economy. All these conflicting demands created a significant challenge for the RBI and government to balance between managing growth and achieving price stability, resulting in a lower GDP growth rate for 2011-12 estimated to be around sub-7% level from a consistent high of 8.4% for the preceding two years.

As they step into a new financial year 2012-13, the consumer sentiments have still not fully recovered from the multiple shocks of last year despite ease in various parameters i.e. WPI inflation has dropped sharply in Q1’2012

and expected to remain in a 6-7% range through 2012, repo rate cut by RBI signalling shift in focus from controlling inflation to fuelling growth and increase in rural income supported by government programs. However despite current weaker sentiments, the long term economic growth potential of India remains intact due to strength of growing middle-income population, continued focus on economic reforms despite slow progress and an attractive investment destination for global investors.

As per NCAER estimates, Indian economy is expected to grow at 7.3% in the coming year 2012-13 depending on the level of rebound in domestic investment, buoyancy in consumer sentiments and key policy reform signals. Several risks may arise to pose significant challenge to the improving growth momentum like unfavourable monsoon or constrained food supply due to procurement bottlenecks may keep domestic food price inflation high at around 9% in 2012, increased subsidy from the food security bill, continued INR depreciation and a worsened economics of the euro zone. Due to shortage of demand in Europe and the US, it is expected that India’s exports growth rate is likely to fall from 21% in 2011-12 to 13.2 % in 2012-13

Indian Textile Industry

The Indian textile industry is likely to grow by 16 percent this year and could reach US$ 115 billion by 2012-end, according to a recent report released by Assocham. The domestic market is likely to increase from Rs.34.6 billion to Rs.60 billion by 2012. India’s share of global textile exports is poised to increase from current 4% to around 7% over the next three years. The Synthetic and Rayon Textile Export Promotion Council (SRTEPC) has set a target to more than double the export of man-made textile from the country. Globally, the man-made fibre trade accounts for 60% of the total trade in textiles. SRTEPC plans to increase exports to Rs.6.2 billion by capturing 4% market share by 2012.

India’s textile industry, which chiefly consists of ginning, spinning, weaving and processing industries, contributes 4 percent to the country’s GDP, about 14 percent to the total industrial production, and accounts for about 17 percent of the country’s foreign exchange earnings. The US and the EU nations account for almost two-thirds of India’s textile exports. The other major destinations are Bangladesh, Turkey, Japan, South Korea, Canada, Saudi Arabia and UAE. In order to keep the textile industry competitive and world class, there is a periodic need for installing new machinery, adopting latest technology, and improving availability of accessories.

At a macro-level, Indian exports growth have shown remarkable diversification and strength over the past few years with Textiles registering a CAGR (FY03-11) of 9%, indicating the rising competitiveness of India’s

textile sector.

However, during the same period FY03-11, the share of textile exports in the overall export basket has fallen from 21% to 9% indicating the increasing competitive pressures that the country is facing from other exporting nations particularly China and Pakistan.

Cotton

For the new cotton season (Nov’11 – Oct’12), Cotton Advisory Board has estimated the domestic acreage at 122 Lakhs hectares leading to a production of 356 Lakhs bales, as against 325 Lakhs bales from 103 Lakhs hectares in 2010-11. Additionally, the price of cotton has stabilized at around Rs 35,000 per candy after touching a high of Rs.67, 000 during early part of 2011. It is likely that Government of India may announce higher minimum support price for cotton for the coming season. This along with permission to export cotton more freely may result in increase in cost of cotton for the coming season.

Indian Rupee Depreciation Improves Export Earnings

The depreciation of the Indian rupee against the US dollar and euro since August 2011 improved India’s competitive positioning in the export market, as currencies of competitors depreciated by lower rate or appreciated during the same period. Therefore, should the trend remain the effect will be positive on the rupee revenue of exporters. However, the benefit would be offset for companies with forex debt, or higher percentage

imports of raw material over product exports. While rupee depreciation is considered good for net foreign exchange earners, very sharp volatility that was witnessed in second half of 2010-11 and which is being witnessed from April 2012, makes it very difficult for exporters to, on one hand, hedge the future foreign currency earnings and the other hand manage foreign currency debt.

Textile Outlook

Going forward, textile exports faces both positive and negative factors, like depreciating rupee and decreasing cost competitiveness of China is going to give positive impetus to India exports while at the same time economic

uncertainty in US and Europe and volatile global markets affecting demand and volatile foreign exchange rates and increase in minimum support price for cotton are likely to negatively affect revenue and margins for the textile industry.

Technology Upgradation Fund Scheme (TUFS)

The Technology Upgradation Fund Scheme (TUFS) launched in 1999, provides for interest Subsidy and capital subsidy and has been important tool to infuse financial support to the textiles industry and help it capitalize on the vibrant and expanding global and domestic markets, through technology upgradation, cost effectiveness, quality production, efficiency and global competitiveness. TUFS which was suspended earlier and had been reintroduced on 28^th April 2011 has expired on 31st March 2012 and currently industry is unclear about when and how the same will be resumed. This has led to uncertainty about cost of borrowing for ongoing and planned investments in textile sector.

Indian Retail Market

Organized retail in India is gaining momentum. The size of India’s retail market is large at Rs.22.2 trillion (March, 2011), within which organized retail has a low share of Rs.1.6 trillion, i.e., a penetration rate of 7.1%. Over the past four years, the size of the organized retail market has risen at a CAGR of 19.3% and its penetration rate has increased to 8.2% as per analyst estimates. Apparel as a category commands nearly 7% of the wallet share

of the average consumer.

Organised Indian retail market which was growing at about 15%-20% for past few years has slowed down after Diwali festive season last year due to overall slowdown in economy and a very steep increase in prices of products due to sharp increase in prices of fabrics on account of cotton cost increase and introduction of excise by Central Government in 2011. Although cotton prices have reduced in recent past, the retail industry is still left with the expensive inventory which will continue to exert pressure on margins for coming few quarters.

BUSINESS REVIEW AND DEVELOPMENTS

Denim

Amidst the challenging macro-economic scenario, Denim business has achieved satisfactory performance in the year 2011-12. The Total Revenue for Denim registered growth of 18%, the Volume remaining almost stable. During the year the management focus was on improving the operating profitability of the business. Several initiatives were taken for improving product and customer mix so as to achieve higher contribution per meter. As part of ongoing product innovation initiatives, Company is developing several differentiated products to remain ahead of the competition.

Operational Improvements:

An Operation Excellence drive is launched for improving productivity and manufacturing costs. This has led to reduction in lead time, improvement in throughput and reduction of rejections. Further several IR initiatives were taken during the year for fostering healthy work practices and motivating shop-floor environment. Udaan, high performance, high potential development program for junior management staff has helped identify, build and develop a talent pool to move into lateral cross functional roles, enabling leveraging of talent. Currently Company is witnessing strong demand for Denim and hence has strong positive outlook.

Shirting and Khakhi Fabrics

The Total Revenue for Shirting and Khakhi registered growth of 11%, the Volume remaining almost stable. US market continues to contribute in shirting export business and having YoY growth of more than 14% in the current financial year.

The Company has made foray in Bangladesh retail market for shirting fabric and has received very encouraging response in the short time. The Company is also witnessing strong growth in women’s wear segment. Retailing the shirting fabrics under the brand name of “Arvind” shows lot of potential for the growth. The outlook for Shirting fabric business continues to remain positive.

Exchange Rate

The Rupee which was 44.22 in April 2011 remained volatile upto July 2011 and then constantly depreciated from 46.09 in August 2011, 48.98 in September 2011, 52.21 in November 2011 to 53.11 in December, 2011. It started recovering at 49.45 in January, 2012 and then 49.01 in February 2012. At the year end, it was 50.88. The Company had taken forward cover on net dollar exposure and the average exchange rate for the entire year was in range of Rs.47.50 to a US dollar.

OUTLOOK

The Company is witnessing strong demand in the international markets especially for Denim. However domestic retail market is sluggish which is likely to keep demand for woven fabrics muted. The sluggish retail demand may affect the growth of MEGAMART. At the same time the brands like Arrow and US Polo continues to show lot of promise for growth. The sharp rupee depreciation could lead to pressure on fabric prices and since the Company has hedged FX exposure around Rs.51 to USD. Sharp depreciation of INR against USD may put downward pressure on unit price realisation in USD terms affecting the margins adversely. The depreciation of currency, freeing of exports and increase in minimum support price may push up cotton prices and yarn prices.

Under the above scenario, the Company is expecting revenue growth of about 12-14% for the year 2012-13. The Textiles business may achieve volume 14-16%, where as Brands and Retail business may clock volume growth of 15% to 18%. The Revenue growth will be lower as products prices have been reduced following reduction in input cost.

Strategy and Programmes for “Corporate Social Responsibility” 2011-12

The Strategic Help Alliance for Relief to Distressed Area (SHARDA) Trust and Narottam Lalbhai Rural Development Fund (NLRDF) are the company’s arms for carrying out the CSR Programmes. SHARDA and NLRDF have been active in improving the quality of life of the urban poor and rural poor respectively.

SHARDA Trust’s Programmes

The programme carried out during the year 2011-12 is their ambitious education programme “Gyanda – Fountain of knowledge” that the company launched in 2006 to improve the quality of education poor children receive. Through the programme Gyanda, the Trust has been actively teaching English, Computers and Mathematics to the students of standard V, VI and VII. It is strongly felt that without understanding of these subjects, a child would be a misfit in the contemporary world. The programme aims to track student’s performance for six to eight years,

ensure that the bright and interested students complete their education well and hope that it is the last generation in poverty for them.

The year 2012 marks the completion of six years as their first batch of students appeared for class XI exams. The programme is six years old now. Their first batch that started in 2006 from standard V, will reach to standard XII in June 2012. As envisaged, the immediate benefit is visible now as the children complete their school education. This will help them in having a career and their chances of coming out of poverty are now verybright.

There are about 1200 students associated with this programme across standard V to XII. Because of their rich experience, the number is expected to reach to 1500 by 2014-15 as their conversion ratio from Class V to VIII has almost doubled and they have added class XI and XII is in the programme. Along with their three Gyanda primary education centres, we now have two more secondary education centres.

For the CSR team, it is a beginning of a new era This, they believe, will lead to Expansion of the present Gyanda Programme and setting up of an education and vocational education model for the students completing Gyanda programme.

NLRDF’s Programmes

NLRDF directly intervenes in the development process at the village level through specifically designed programmes and works efficiently with rural poor for their upgradation and development. The present operational area includes 12 districts of Gujarat state reaching out to a beneficiary population of about 25000. NLRDF has been working with the strategy of linking of government programmes with the rural poor and thereby increasing the efficiency and the effectiveness of the delivery process. The Entrepreneurship programmes for Widows, programmes for HIV / AIDS awareness and control, programmes for improving the level of health and nutrition among the non-school going and school going girls and skill upgrading programmes for the rural poor are some of the programmes that NLRDF undertook during 2011-12.

In India, widows need special attention and care as the social and cultural paradigms do not support their respectable survival. In order to accomplish widow’s needs and requirements, NLRDF closely works with Government Agencies and facilitates the implementation of Entrepreneurship program for widows. The biggest benefit that their trainee widows get is the self confidence. Another noticeable gain from this program is that they could step out of their houses confidently, which they could not do earlier. NLRDF also teaches them basic management principals, which help them to identify the market segment, target customers, book keeping, costing

of the products and product selection which help them yield a long term return on investment. Considering their excellent performance for last five years the Government of Gujarat awarded highest target in Gujarat to NLRDF of training widows in 6 districts of Gujarat in one year. Accordingly during the year 2011-12, 1111 widows of 6 districts were trained.

The NLRDF has also worked for HIV/AIDS control under National Aids Control Program since 2003 in Sabarkantha district. The aims of the project are envisaged as to half and reverse the epidemic in India over

five years. The intervention provides services to Core population i.e. FSW and MSM through Behavioural Change Communication, Counselling, STD treatment and Enabling environment and Referral and linkages. The efforts of the Trust have been recognized by the Expert External Evaluators of the program which lead to their inclusion among top 3 NGOs in the state.

NLRDF has also trained 30 tribal youths in Masonry work and a kit for mason work was provided after training resulting into immediate income generation.

CONTINGENT LIABILITIES

(Rs. in Millions)

CONTINGENT LIABILITIES (to the extent not provided for)	31.03.2012	31.03.2011
Bills Discounted	1114.000	1295.300
Claims against the Company not acknowledged as debts	85.500	82.900
Guarantees given by the Banks on behalf of the Company	590.000	238.400
Guarantees given by the Company to Banks on behalf of Subsidiaries/Joint Ventures	3558.300	3307.300
Disputed Demands in respect of
Excise/Custom Duty	308.300	160.400
Sales Tax	203.700	180.200
Income Tax	181.100	38.200
Service Tax	11.900	13.300

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31.12.2012

(Rs. In millions)

Sr. No	Particulars	Quarter Ended		Nine Months Ended
		31.12.12	30.09.12	31.12.12
		Unaudited	Unaudited	Unaudited
1	Income from operations
	(a) Net Sales/Income from Operations (Net of excise duty)	9780.500	9825.600	28343.800
	(b) Other Operating Income	(75.100)	(235.100)	(527.200)
	Total Income from operations (net)	9705.400	9590.500	27816.600
2	Expenses
	(a) Cost of materials consumed	4304.500	4134.900	12147.300
	(b) Purchase of stock-in-trade	166.200	124.800	631.700
	(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	(424.200)	(307.300)	(1280.000)
	(d) Employee benefit expense	1108.700	1116.200	3219.100
	(e) Depreciation and amortisation expense	383.000	373.400	1118.200
	(f) Power & Fuel	1027.700	1042.700	3056.500
	(g) Stores Consumption	765.500	812.500	2299.300
	(h) Other Expenses	1270.200	1078.100	3369.300
	(i) Foreign Exchange Loss/(Gain)	(77.800)	178.000	188.700
	Total Expenses	8523.800	8553.300	24750.100
3	Profit from Operations before Other Income, Finance Cost and Exceptional
	Items (1-2)	1181.600	1037.200	3066.500
4	Other Income	180.500	284.800	708.300
5	Profit from ordinary activities before Finance Costs and Exceptional Items
	(3+4)	1362.100	1322.000	3774.800
6	Finance Costs	703.600	674.000	2006.800
7	Profit from ordinary activities after Finance Costs but before Exceptional
	Items (5-6)	658.500	648.000	1768.000
8	Add/(Less) : Exceptional Item - Prior Period Item	0.000	0.000	0.000
9	Profit from Ordinary Activities before tax (7+8)	658.500	648.000	1768.000
10	Tax Expense :
	- Current Tax	124.500	129.700	346.500
	- MAT Credit Entitlement	(124.500)	(129.700)	(339.600)
11	Net Profit from Ordinary Activities after tax (9-10)	658.500	648.000	1761.100
12	Extraordinary Item (net of tax expense Rs. 538.600 millions)	0.000	0.000	0.000
13	Net Profit for the period (11+12)	658.500	648.000	1761.100
14	Paid-up Equity Share Capital ( Face Value Rs. 10/- per share)	2580.400	2580.400	2580.400
15	Reserves excluding revaluation reserves as per Balance Sheet of previous
	accounting year
16	(a) EPS before Extraordinary Item Rs.-(Not Annualised)
	Basic	2.55	2.54	6.82
	Diluted	2.55	2.54	6.82
	(b) EPS after Extraordinary Item Rs.-(Not Annualised)
	Basic	2.55	2.54	6.82
	Diluted	2.55	2.54	6.82

SELECT INFORMATION FOR THE QUARTER AND NINE MONTHS ENDED 31.12.2012

	Particulars	Quarter Ended	Quarter Ended	Nine Months Ended
		31.12.12	30.09.12	31.12.12
A	PARTICULARS OF SHAREHOLDING
1	Public Shareholding
	- Number of Shares	145784257	148298258	145784257
	- Percentage of shareholding	56.49%	57.47%	56.49%
2	Promoters & promoter group Shareholding
	a) Pledged / Encumbered
	- Number of Shares	455000	455000	455000
	- Percentage of shares (as a % of the total shareholding of
	promoter & promoter group)	0.41%	0.41%	0.41%
	- Percentage of shares (as a % of the total share capital of the
	Company )	0.18%	0.18%	0.18%
	b) Non-encumbered
	- Number of Shares	111803812	109289811	111803812
	- Percentage of shares (as a % of the total shareholding of
	promoter & promoter group)	99.59%	99.59%	99.59%
	- Percentage of shares (as a % of the total share capital of the
	Companv )	43.33%	42.35%	43.33%

	Particulars	Quarter Ended 31.12.12 (No.)
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	Nil
	Received during the quarter	17
	Disposed of during the quarter	17
	Remaining unresolved at the end of the quarter	Nil

Notes:

The limited review of above unaudited financial results as required under Clause 41 of listing agreement has been carried out by statutory auditors.

The above results were reviewed by the Audit Committee and taken on record by the Board of Directors at their meeting held on 30th January, 2013.

Other Income for the quarter includes profit on sale of land held for sale/fixed assets of Rs. 67.500 millions (quarter ended September 30, 2012 Rs. 110.900 millions, quarter ended December 31, 2011 Rs. 332.200 millions and year ended March 31, 2012 of Rs. 932.600 millions).

Extraordinary item (net of tax) for the year ended March 31, 2012 represents profit on disposal of stake in Joint Venture VF Arvind Brands Private Limited.

On 30.12.2012, fire occurred in one of the plants at Naroda for which the Company is in the process of lodging fire claim with the Insurance Company.

SEGMENTWISE REVENUE RESULTS AND CAPITAL EMPLOYED (STANDALONE)

(Rs. In millions)

Sr. No	Particulars	Quarter Ended		Nine Months Ended
		31.12.12	30.09.12	31.12.12
		Unaudited	Unaudited	Unaudited
1	Segment Revenue (Net Sales / Income from Operations)
	(a) Textiles	9512.700	9527.300	27386.300
	(b) Others	192.700	63.200	430.300
	Total	9705.400	9590.500	27816.600
	Add : Other Unallocable Income	0.000	0.000	0.000
	Less : Inter Segment Sales	0.000	0.000	0.000
	Net Sales / Income from Operations	9705.400	9590.500	27816.600
2	Segment Results (Profit before Interest & Tax)
	(a) Textiles	1319.800	1350.900	3722.300
	(b) Others	(39.400)	(47.600)	(80.300)
	Total	1280.400	1303.300	3642.000
	Less : (a) Interest and Finance Charges (Net)	703.600	674.000	2006.800
	(b) Other Unallocable expenditure (net of unallocable income)	(81.700)	(18.700)	(132.800)
	Profit Before Extra Ordinary Items & Tax	658.500	648.000	1768.000
3	Capital Employed (Segment Assets - Segment Liability)
	(a) Textiles	30303.100	29844.200	30303.100
	(b) Others	421.100	370.900	421.100
	(c) Unallocable	12950.800	12477.000	12950.800
	Total Capital Employed in Company	43675.000	42692.100	43675.000

WEBSITE DETAILS

PRESS RELEASE

ARVIND BOARD RECOMMENDS 16.5% DIVIDEND

MAY 16, 2013

Arvind Ltd has informed BSE that the Board of Directors of the Company at its meeting held on May 16, 2013, inter alia, has recommended dividend @ 16.5% i.e. Rs. 1.65 per equity share of Rs. 10 each of the Company for the year ended on March 31, 2013.Source : BSE

ARVIND REVENUE OF RS. 11570.000 MILLIONS AND PROFIT AFTER TAX OF RS. 32 CRORE

JULY 26, 2012

Arvind Limited, one of the largest integrated textile and branded apparel players recorded Revenue of Rs. 1157 crores and Net Profit After tax of Rs. 320.000 millions for the quarter ended on 30^th June 2012 as against Revenue of Rs. 12110.000 millions and Net Profit After tax of Rs. 610.000 millions for the previous quarter ended on 30^th June 2011. At the operating level, consolidated EBIDTA for the Quarter stood at Rs. 1290.000 millions. The financial performance for the Quarter is not comparable with that of previous Quarter ended 30^th June 2011, on account of the Company's operations for the getting affected on account of one-time event of strike of workmen in the month of June 2012.

Despite reduction in selling prices by 10%-14% in various textile products, caused by fall in cotton prices, revenue for Q1 was strong on account of robust growth in textile volumes and 9 % increase in revenue of brand and retail business

Commenting on the results as well as outlook of the Company, Mr. Jayesh Shah, Director and Chief Financial Officer said: "We had an abnormal situation due to the strike in 2 of our plants and hence it will be not appropriate to compare these results with that of previous year. Our textile business is witnessing strong growth and we are confident that in coming quarter there will be growth in volume as well as margins.”

FIXED ASSETS:

· Land

· Machinery

· Building

· Plant and Machinery

· Furniture and Fixtures

· Office Equiptments

· Leasehold Improvements

· Vehicles

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 records 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.53.07
UK Pound	1	Rs.84.95
Euro	1	Rs.68.24

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		65

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.