MIRA INFORM REPORT

Report Date :

05.02.2014

IDENTIFICATION DETAILS

Name :	RIETER INDIA PRIVATE LIMITED
Registered Office :	Gate No.134/1, Vadhi Road, Off Pune Nagar Road, Koregaon Bhima, Pune – 412 207, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	01.08.1995
Com. Reg. No.:	11-139264
Capital Investment / Paid-up Capital :	Rs.34.902 Millions
CIN No.: [Company Identification No.]	U74899PN1995PTC139264
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Yarns
No. of Employees :	1000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 5271000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a subsidiary of Rieter Holding AG Switzerland. It is established company having moderate track record. There appears losses recorded by the company from its operational activities. However, trade relations are fair. Business is active. Payments terms are slow but correct. The company can be considered for business dealings with some 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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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

The services sector, the largest contributor to India’s GDP, contracted for the sixth consecutive month in December, as orders dipped. However, hiring has risen.  Direct tax collections rose 12.3 % during the April – December period of the current financial year.  The government has decided to retain 100 per cent foreign direct investment in both greenfield (new) and brown field (existing) pharmaceutical companies, despite concerns over genetic drugs going out of production, if multi-national companies take over domestic ones. In M&A deals, a non compete clause would not be allowed, except in special circumstances. The Department of Industrial Policy and Promotion plans to release the next edition of its consolidated foreign direct investment policy document on March 31, incorporating changes made in the past year. DIPP compiles all policies related to India’s FDI regime into a single document to make it easy for investors to understand. 185 million estimated number of mobile internet users in India by June 2014, according to a report by the Internet & Mobile Association of India and IMRB International.  India had 110 million mobile internet users with 25 million in rural areas. $3.77 tn estimated global IT spending in 2014, according to research firm Gartner Inc. The growth forecast for this year is cut to 3.1 %from the earlier estimate of 3.5 %. The spending growth forecast for telecom services – a segment that accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per cent is the main reason for this overall IT cut. A Reserve Bank of India committee has recommended setting up a special category of lenders who would cater to small businesses and households, to expand the number of customers with access to banking services. These banks would focus onproviding payment services and deposit products.  Indian banks want the free use of automated teller machines to be capped at five transactions in a month including that of the bank in which the account is active. This follows state government order to banks to install security guards at ATM booths after a woman banker was assaulted in Bangalore. The government is likely to present a vote on Account in mid-February. The annual Economic Survey will be tabled later in Parliament along with the full Budget. A full Budget for 2014/15 is likely to be present in July by the new government formed after the General Election. The government will soon launch an internet spy system, called Netra, to detect malafide messages. Security agency will deploy the system to capture dubious voice traffic on applications such as Skype and Google Talk, as well as tweeters.

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.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Sanjay Vinayak Talavlikar
Designation :	Secretary
Contact No.:	91-2137-308408
Date :	04.02.2014

LOCATIONS

Registered Office :	Gate No.134/1, Vadhi Road, Off Pune Nagar Road, Koregaon Bhima, Pune – 412 207, Maharashtra, India
Tel. No.:	91-2137-253-071/72/74
Fax No.:	91-2137-253075
E-Mail :	Sanjay.talavlikar@rieter.com
Website :	www.rieter.com
Branches 1 :	S.C.O. 146-147, 3rd Floor Sector – 34-A, Chandigarh – 160 022, India
Tel. No.:	91-172-2621634
Fax No.:	91-172-2621633
Branches 2 :	3^rd Floor, Bldg No.9, Tower B, DLF cyber city, Phase III, Goregaon – 122 002, Maharashtra, India
Tel. No.:	91-124-4500800/03
Fax No.:	91-124-4500850
Branches 3 :	4^th floor, L Tower, South Wing, Stock Exchange Building, Coimbatore – 641 005, India
Tel. No.:	91-422-2320520/22
Fax No.:	91-422-2320525
Works :	Wing Works and Office, Mahad-Pandharpur Road, Taluka Khandala, Satara – 412 801, Maharashtra, India
Tel. No.:	91-2169-284301
Fax No.:	91-2169-284302

DIRECTORS

AS ON 29.09.2012

Name :

Mr. Thomas Anwander

Designation :

Director

Address :

Im Lerchenbuel, 24, 8405, Winterthur, Switzerland - 8405

Date of Birth/Age :

19.02.1960

Date of Appointment :

15.12.2012

DIN No.:

00470001

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	U74899PN1995PTC139264	RIETER INDIA PRIVATE LIMITED	Director	15-12-12	01-08-95	-	Active	NO
2	U28999MH1992PTC068754	SUESSEN ASIA PRIVATE LIMITED	Director	09-05-05	09-05-05	-	Amalgamated	NO
3	U74899DL1991PTC045291	AUTONEUM INDIA PRIVATE LIMITED	Director	21-07-06	21-07-06	23-03-09	Active	NO
4	U72900TN2008PTC072877	AUTONEUM NITTOKU SOUND PROOF PRODUCTS INDIA PRIVATE LIMITED	Director	03-06-08	03-06-08	06-08-08	Active	NO
5	U29199TZ1993PLC004443	LMW MACHINERY LIMITED	Alternate director	25-07-11	25-07-11	16-08-11	Amalgamated	NO

Name :

Mr. Sudhir Jalan

Designation :

Additional Director

Address :

9, Alipore Road, Kolkata – 700 027, West Bengal, India

Date of Birth/Age :

07.11.1944

Date of Appointment :

01.05.2008

DIN No.:

00111118

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	L40109WB1928PLC023311	THE SHAHJAHANPUR ELECTRIC SUPPLY COMPANY LIMITED	Director	09-08-71	09-08-71	-	Active	NO
2	L15421WB1975PLC030118	BALRAMPUR CHINI MILLS LIMITED	Director	08-09-77	08-09-77	27-07-09	Active	NO
3	U67120KA1984PLC065956	SES (INDIA) LIMITED	Director	03-05-84	03-05-84	-	Active	NO
4	U21012DL1990PTC102759	SICPA INDIA PRIVATE LIMITED	Director	21-12-90	21-12-90	25-05-07	Active	NO
5	U51420WB1933PLC007661	SUBLIME AGRO LIMITED	Director	21-05-93	21-05-93	-	Active	NO
6	U72900KA1999PLC047267	BELLS SOFTECH LIMITED	Director	01-04-99	01-04-99	-	Active	NO
7	L21010AP1938PLC000591	THE SIRPUR PAPER MILLS LIMITED	Director	31-01-00	31-01-00	-	Active	NO
8	L15491WB1984PLC060595	MEENAKSHI TEA COMPANY LIMITED	Managing director	01-06-13	01-06-02	-	Active	NO
9	U72900KA2000PTC026328	BRAR PROPERTIES AND HOLDINGS PRIVATE LIMITED	Director	09-10-03	09-10-03	-	Active	NO
10	U70200KA2004PTC033851	ASA HOLDINGS PRIVATE LIMITED	Director	29-04-04	29-04-04	-	Active	NO
11	U01122KA2004PTC034756	NEO FOODS PRIVATE LIMITED	Director	28-09-12	27-09-04	-	Active	NO
12	U29196TN2005PLC057662	RICE LAKE WEIGHING SYSTEMS INDIA LIMITED	Director	16-03-06	16-03-06	-	Active	NO
13	U74899PN1995PTC139264	RIETER INDIA PRIVATE LIMITED	Additional director	01-05-08	01-05-08	-	Active	NO
14	U51909WB1940PLC010151	BJM INDUSTRIES LIMITED	Director	29-09-09	16-10-08	05-05-10	Active	NO
15	U01132WB1991PTC051012	DHAWALGIRI HOLDINGS PRIVATE LIMITED	Director	30-09-10	20-08-10	-	Active	NO
16	U67120WB1974PTC029334	ANCHOR INVESTMENTS PRIVATE LIMITED	Director	30-09-10	20-08-10	-	Active	NO

Name :

Mr. Peter Rudolf Gnaegi

Designation :

Alternate Director

Address :

Auf Salenrain Io, Stafa, Switzerland - 8712

Date of Birth/Age :

02.07.1954

Date of Appointment :

15.09.2009

DIN No.:

02221346

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	U29199TZ1993PLC004443	LMW MACHINERY LIMITED	Nominee director	18-10-02	18-10-02	16-08-11	Amalgamated	NO
2	U74899PN1995PTC139264	RIETER INDIA PRIVATE LIMITED	Alternate director	15-09-09	01-05-08	-	Active	NO

Name :

Mr. Liske Carten

Designation :

Director

Address :

8832, Wilen B Wollerau Hoh, Rohneweg 18

Date of Birth/Age :

24.05.1973

Date of Appointment :

25.09.2013

DIN No.:

02925980

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	U29199TZ1993PLC004443	LMW MACHINERY LIMITED	Nominee director	12-07-10	01-02-10	16-08-11	Amalgamated	NO
2	U74899PN1995PTC139264	RIETER INDIA PRIVATE LIMITED	Director	25-09-13	07-04-11	-	Active	NO

Name :

Mr. Peter Hans Muller

Designation :

Alternate Director

Address :

Wasserfuristr 43, 8542, Wiesendangen, Switzerland – 8542

Date of Birth/Age :

17.03.1964

Date of Appointment :

15.01.2013

DIN No.:

00470182

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	Company/ LLP Status	Defaulting status
1	U74899PN1995PTC139264	RIETER INDIA PRIVATE LIMITED	Alternate director	15-01-13	22-08-00	Active	NO

Name :

Mr. Adarsh Jalan

Designation :

Alternate Director

Address :

15/5, Palace Road, Vasan – TH Nagar, Bangalore – 560 052, Karnataka, India

Date of Birth/Age :

17.06.1968

Date of Appointment :

15.09.2009

DIN No.:

00383250

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	U01132WB1991PTC051012	DHAWALGIRI HOLDINGS PRIVATE LIMITED	Director	04-03-91	04-03-91	-	Active	NO
2	U51420WB1933PLC007661	SUBLIME AGRO LIMITED	Director	02-04-91	02-04-91	04-09-10	Active	NO
3	U72900KA1999PLC047267	BELLS SOFTECH LIMITED	Director	31-12-12	01-04-99	-	Active	NO
4	U72900KA2000PTC026328	BRAR PROPERTIES AND HOLDINGS PRIVATE LIMITED	Director	09-10-03	09-10-03	-	Active	NO
5	L15491WB1984PLC060595	MEENAKSHI TEA COMPANY LIMITED	Director	29-10-03	29-10-03	-	Active	NO
6	U70200KA2004PTC033851	ASA HOLDINGS PRIVATE LIMITED	Whole-time director	31-12-12	29-04-04	-	Active	NO
7	U01122KA2004PTC034756	NEO FOODS PRIVATE LIMITED	Managing director	27-09-04	27-09-04	31-05-11	Active	NO
8	U70104KA1994PTC016443	GURU SAI PROPERTY INVESTMENT PRIVATE LIMITED	Director	03-10-05	03-10-05	02-01-09	Strike off	NO
9	U15494KA2001PTC029456	ABSOLUTEE FOODS PRIVATE LIMITED	Director	14-12-06	14-12-06	-	Active	NO
10	U74899PN1995PTC139264	RIETER INDIA PRIVATE LIMITED	Alternate director	15-09-09	01-05-08	-	Active	NO
11	U51420KA1985PTC071070	PCI MARKETING PRIVATE LIMITED	Director	30-09-10	30-08-10	-	Active	NO
12	U45209KA1984PTC071069	PARK VIEW PROPERTIES PRIVATE LIMITED	Director	30-09-10	30-08-10	-	Active	NO
13	L74140KA1981PLC067965	BIKANNA COMMERCIAL COMPANY LIMITED	Director	30-09-10	30-08-10	-	Active	NO
14	U67120KA1984PLC065956	SES (INDIA) LIMITED	Director	30-09-11	14-02-11	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Sanjay Vinayak Talavlikar
Designation :	Secretary
Address :	Flat No. 3, Swapnapurti Apartments, Kimbare Township, Kothrud, Pune – 411 038, Maharashtra, India
Date of Birth/Age :	27.09.1966
Date of Appointment :	04.02.2009
PAN No.:	AAKPT4120G

MAJOR SHAREHOLDERS

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Meenakshi Tea Co. Limited, India	548000
Anchor Investments (P) Limited, India	220000
New Arena holdings (P) Limited, India	14000
Peak Mercantiles (P) Limited, India	25000
Sudhir Jalan	38452
Alka Jalan	18000
Adarsh Jalan	18000
Gaurav Jalan	18000
Sudhir Jalan, HUF	8000
Spindelfabrik Suessen GmBH, Germany	928881
Rieter Holding Ag., Switzerland	1653866
Total	3490199

Equity Share Break up (Percentage of Total Equity)

AS ON 29.09.2012

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	74.00
Bodies corporate	23.00
Directors or relatives of Directors	3.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Yarns

Products :

Product or Services	ITC Code
Textile Spinning Machine	8445
Textile Preparatory Machine	8445
Textile Parts Sales	8448
ESS	8448
Machinery and Mechanical Appliances	4017
Ancillary Products or Activities Not Elsewhere Specified	4100
Installation, Maintenance and Repair Services	6704
Business Support Services	6405
Architectural and Engineering Services	5061
Leasing or Rental of Tangible Assets	6006
Wholesale Trade of Machinery, Equipment and Supplies	8009

Terms :

Selling :

Credit

Purchasing :

Credit

GENERAL INFORMATION

Customers :	Wholesalers and Retailers
No. of Employees :	1000 (Approximately)
Bankers :	Corporation Bank, Industrial Finance Branch, Pune Mumbai Road, Vakdewadi, Pune – 411 003, Maharashtra, India

Banking Relations :	--
Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Address :	Muttha Towers, 5^th Floor, Suite No.8, Airport Road, Yerwada, Pune – 411 006, India
PAN No.:	AADFP9359C
Ultimate Holding Company :	Rieter Holding AG Switzerland
Fellow Subsidiaries :	· Rieter Machine Works Limited, Switzerland · Rieter Changzhou Textile Instruments Company Limited, China · Spindelfabrik Suessen GmbH, Germany · Bracker AG, Switzerland · Graf + Cie AG, Switzerland · Novibra Boskovice S.R.O., Chec Republic · Rieter CZ A.S. · Willhelm Stahlecker GmbH, Germany · Rieter Deutscheland, GmbH, Germany · Rieter LMW Machinery Limited, India · Rieter Automotive India Private Limited, India · Rieter Nittoku Automotive Soundproof Products India Private Limited, India

CAPITAL STRUCTURE

AS ON 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs. 10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3490199	Equity Shares	Rs. 10/- each	Rs.34.902 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	34.902	34.902	34.902
(b) Reserves & Surplus	1283.060	1661.070	2193.510
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	1317.962	1695.972	2228.412
(3) Non-Current Liabilities
(a) long-term borrowings	2679.800	2410.060	1123.760
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	2.170	2.170	1.870
(d) long-term provisions	19.760	17.210	5.050
Total Non-current Liabilities (3)	2701.730	2429.440	1130.680
(4) Current Liabilities
(a) Short term borrowings	723.950	300.000	0.000
(b) Trade payables	1800.730	1189.958	992.108
(c) Other current liabilities	1196.980	280.470	415.220
(d) Short-term provisions	33.360	43.210	48.660
Total Current Liabilities (4)	3755.020	1813.638	1455.988
TOTAL	7774.712	5939.050	4815.080
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3280.000	2187.670	1826.280
(ii) Intangible Assets	74.810	35.790	45.340
(iii) Capital work-in-progress	186.210	618.270	176.840
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	349.040	395.240	311.580
(e) Other Non-current assets	85.490	47.820	10.510
Total Non-Current Assets	3975.550	3284.790	2370.550
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	2056.410	1044.680	1131.990
(c) Trade receivables	767.390	632.350	237.490
(d) Cash and cash equivalents	143.150	175.240	387.350
(e) Short-term loans and advances	817.552	791.870	677.410
(f) Other current assets	14.660	10.120	10.290
Total Current Assets	3799.162	2654.260	2444.530
TOTAL	7774.712	5939.050	4815.080

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	4373.710	3115.450	2366.360
		Other Income
		TOTAL	4373.710	3115.450	2366.360
Less	EXPENSES
		Office Expenses
		Administrative Expenses	4751.720	3647.890	2562.310
		Advertising Expenses
		TOTAL	4751.720	3647.890	2562.310
	PROFIT / (LOSS) BEFORE TAX		(378.010)	(532.440)	(195.950)
Less	TAX		0.000	0.000	0.000
	PROFIT / (LOSS) AFTER TAX		(378.010)	(532.440)	(195.950)
	BALANCE CARRIED TO THE B/S		(474.400)	(96.390)	(436.050)
	Earnings / Loss) Per Share (Rs.)		(108.30)	(152.55)	(56.14)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(8.64)	(17.09)	(8.28)
Return on Total Assets (PBT/Total Assets}	(%)	(5.28)	(10.92)	(4.54)
Return on Investment (ROI) (PBT/Networth)		(0.29)	(0.31)	(0.09)
Debt Equity Ratio (Total Debt /Networth)		2.58	1.60	0.50
Current Ratio (Current Asset/Current Liability)		1.01	1.46	1.68

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	Yes
10]	Designation of contact person	Yes
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	Yes
20]	Export / Import details (if applicable)	No
21]	Market information	----------
22]	Litigations that the firm / promoter involved in	----------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------
26]	Buyer visit details	----------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

NOTE:

Registered office address of the company has been shifted from 308, Hemkunt Tower, 98, Nehru Place, New Delhi – 110 019, Delhi, India to the present address w.e.f.01.04.2011

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Term loan from others	2679.800	2410.060
Short Term Borrowings
From members	723.950	300.000
Total	3403.750	2710.060

PERFORMANCE OF THE COMPANY:

The income of subject increased from Rs.3115 million to Rs.4373 million, registering an increase of 40.39 % over the previous financial year. The operating loss before taxation reduced by 29% from Rs. 532 million to Rs.378 million in the period under review. Net loss after tax also reduced by 29% from Rs.532 million to Rs.378 Million in 2012-13. At the end of 31st March 2013, the total reserves and surplus with subject amounted to Rs.1283 million.

MARKET OUTLOOK:

The industry is currently experiencing high fluctuation in cotton and yarn prices; however, demands for yarns are good even though there are fluctuations in demand as well. Yarn spinners throughout India reports satisfactory margins. The apparel sector has experienced high order intake in last 3 months and they predict the festive season to go very well this year. The industry is facing difficulty in repaying term loans. Government has announced a Rs.350000.000 Millions debt restructuring package. RBI has also asked banks to consider debt restructuring on a case-by-case basis. The liquidity tightness created in the system recently and rising interest rates have made it difficult for investors to go ahead with their planned expansions.

There are also problems of policy paralysis as seen in general economy. The TUFS announcement is pending with government for last 3 months. Whether the policy will be effective retrospective (effective 1st April 2013) or prospective from the date of announcement has created a big confusion. Many new projects are on hold. Technology Up gradation Fund Scheme (TUFS) for textile sector is part of the XII Plan with an allocation of Rs.158860.000 Millions. The outlay for TUFS in the XI Plan was Rs.120000.000 Millions. Decisions are pending on certain adjustment in labour laws to facilitate availability of labours in peak season, is pending.

Looking into the export potential, the textile and apparel export target has been revised to US$ 46 Billion for 2014-15. In 2012-13, India exported US$ 34 Billion out of total global trade of $ 700 billion. Domestic trade is at good level of US $ 57 billion. Indian Textile Industry is still underplayed and not growing because of various constraints like small scales of production, low finance availability, lack of skilled labor, poor designs and low productivity. Liberalization of policies for FDI in retail trade will open up new opportunities.

Subject is constantly scanning the external environment to monitor customer needs. Accordingly subject is responding by expanding capacities and offering more products in local currency. After enlarging the capacity at Wing plant, additional facilities have been constructed for new activities that have been initiated at KB Plant. Subject is thus well positioned to take advantage of positive developments in the Indian spinning sector.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90085672	02/03/2001	5,000,000.00	CORPORATION BANK	INDUSTRIAL FINANCE BRANCH, PUNE MUMBAI ROAD, VAKDEWADI, MAHARASHTRA – 411 003, INDIA	-

* Date of charge modification

FIXED ASSETS:

· Freehold Land

· Building

· Plant and Machinery

· Electrical Installation

· Furniture and Fixtures

· Leasehold Improvements

· Computers

· Office Equipments

· 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 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.62.68
UK Pound	1	Rs.101.98
Euro	1	Rs.84.78

INFORMATION DETAILS

Information Gathered by :	HET
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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		28

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.