MIRA INFORM REPORT

Report Date :

21.10.2014

IDENTIFICATION DETAILS

Name :	AVANI TEXTILES LIMITED
Registered Office :	Rural Focal Point, Village Bhindran, Patiala Road, Sangrur – 148001, Punjab
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	22.08.2006
Com. Reg. No.:	16-030558
Capital Investment / Paid-up Capital :	Rs. 576.100 Millions
CIN No.: [Company Identification No.]	U17121PB2006PLC030558
TAN No.: [Tax Deduction & Collection Account No.]	PTLA12666D
PAN No.: [Permanent Account No.]	AAFCA8655B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Supplier of Cotton Yarn.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 1750000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There incurred some accumulated loss recorded by the company. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings with some cautions.

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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating: “B-”
Rating Explanation	Have high risk of default.
Date	19.09.2014

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 31-03-2014.

INFORMATION DECLINED BY

Name :	Mr. Pankaj Mitthal
Designation :	Accounts Manager
Contact No.:	91-9216350049
Date :	18.10.2014

LOCATIONS

Registered Office :	Rural Focal Point, Village Bhindran, Patiala Road, Sangrur – 148001, Punjab, India
Tel. No. :	91-1672-246039/ 246089/ 246409
Mobile No. :	91-9216350049 (Mr. Pankaj Mitthal)
Fax No. :	91-1672-246249
E-Mail :	info@avanitextile.com sales@avanitextile.com avanifinance@gmail.com accountsavanitextiles@gmail.com finance@avanitextile.com avanifinance@gmail.com
Website :	www.avanitextile.com

DIRECTORS

As on 27.09.2013

Name :

Mr. Ramesh Kumar

Designation :

Director

Address :

H No. 272, W No. 14, Ramgarhia Gurdwara Road, Dhuri, Sangrur – 148024, Punjab, India

Date of Birth/Age :

07.11.1964

Date of Appointment :

22.08.2006

DIN No. :

00027794

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	U15310PB1996PLC017918	ARPAN FOODS LIMITED	Whole-time director	01-08-2011	25-03-1996	01-07-2014	Active	NO
2	U15313PB1992PLC012560	HANUMAN ROLLER FLOUR MILLS LIMITED	Director	28-01-2004	28-01-2004	-	Active	NO
3	U45202PB2006PLC029834	TRIDEV COMMODITIES LIMITED	Director	02-03-2006	02-03-2006	-	Active	NO
4	U17121PB2006PLC030558	AVANI TEXTILES LIMITED	Director	22-08-2006	22-08-2006	-	Active	NO
5	U17200DL2009PLC191976	ANGEL KNITWEARS LIMITED	Director	07-07-2009	07-07-2009	-	Active	NO

Name :

Mr. Deepak Jindal

Designation :

Director

Address :

Kothi No. 1, Mann Colony, College Road, Sangrur – 148001, Punjab, India

Date of Birth/Age :

03.09.1975

Qualification :

B.Engg. and M.B.A.

Date of Appointment :

22.08.2006

DIN No. :

00360284

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	U15141PB1999PLC022253	SANGRUR AGRO LIMITED	Whole-time director	01-07-2014	18-02-1999	-	Active	NO
2	U31909PB1997PLC019509	PUNJAB PORCELAIN LIMITED	Director	05-04-1999	05-04-1999	-	Active	NO
3	U31909PB1993PLC013095	PUNJAB TRANSFORMERS AND ELECTRONICS LIMITED	Director	26-06-2000	26-06-2000	-	Active	NO
4	U31102PB2002PLC025027	SANGRUR INDUSTRIAL CORPORATION LIMITED	Director	26-03-2002	26-03-2002	-	Active	NO
5	U17121PB2006PLC030558	AVANI TEXTILES LIMITED	Director	22-08-2006	22-08-2006	-	Active	NO
6	U40104PB2007PLC031428	AVANI POWER LIMITED	Director	17-10-2007	17-10-2007	-	Active	NO
7	U17200DL2009PLC191975	AAKASH KNITFAB LIMITED	Director	07-07-2009	07-07-2009	-	Active	NO
8	U17200PB2010PLC033529	AVANI COTEX LIMITED	Director	20-01-2010	20-01-2010	-	Active	NO
9	U65920PB1996PLC017744	SANGRUR FINVEST LIMITED	Director	29-09-2010	10-07-2010	-	Active	NO
10	U18202PB2007PLC030881	JYOTI THREADS (INDIA) LIMITED	Additional director	10-09-2012	10-09-2012	27-03-2014	Active	NO

Name :

Mr. Shiv Kumar Goyal

Designation :

Director

Address :

H No. 43, Mubarak Kothi, Dhuri Road, Sangrur – 148001, Punjab, India

Date of Birth/Age :

06.02.1957

Qualification :

Chartered Accountant

Date of Appointment :

22.08.2006

DIN No. :

00018403

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	U67200PB1994PTC014166	SGA INSURANCE SURVEYORS AND LOSS ASSESSORS PRIVATE LIMITED	Director	31-01-1994	31-01-1994	Active	NO
2	U15310PB1996PLC017918	ARPAN FOODS LIMITED	Director	22-04-1996	22-04-1996	Active	NO
3	U15313PB1992PLC012560	HANUMAN ROLLER FLOUR MILLS LIMITED	Director	01-07-2005	01-07-2005	Active	NO
4	U45202PB2006PLC029834	TRIDEV COMMODITIES LIMITED	Director	02-03-2006	02-03-2006	Active	NO
5	U67120PB1994PLC015171	KSR CAPITAL SERVICES LTD	Director	02-03-2006	02-03-2006	Active	NO
6	U17121PB2006PLC030558	AVANI TEXTILES LIMITED	Director	22-08-2006	22-08-2006	Active	NO
7	U70100PB2006PTC030345	SGA REAL ESTATES PRIVATE LIMITED	Director	26-09-2008	01-05-2008	Active	NO
8	U45209CH2010PTC032102	SGA CONSTRUCTIONS PRIVATE LIMITED	Director	18-03-2010	18-03-2010	Active	NO
9	U74140CH2010PTC032248	SGA CONSULTANCY SERVICES PRIVATE LIMITED	Director	26-05-2010	26-05-2010	Active	NO

Name :

Mr. Lajpat Rai Jindal

Designation :

Director

Address :

201/2, Jain Street, Patiala Gate, Sangrur – 148001, Punjab, India

Date of Birth/Age :

11.11.1945

Date of Appointment :

29.09.2007

DIN No. :

00360202

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	U31909PB1993PLC013095	PUNJAB TRANSFORMERS AND ELECTRONICS LIMITED	Director	03-03-1993	03-03-1993	Active	NO
2	U15141PB1999PLC022253	SANGRUR AGRO LIMITED	Director	18-08-2000	18-08-2000	Active	NO
3	U31102PB2002PLC025027	SANGRUR INDUSTRIAL CORPORATION LIMITED	Whole-time director	26-03-2002	26-03-2002	Active	NO
4	U31909PB1997PLC019509	PUNJAB PORCELAIN LIMITED	Director	29-09-2007	26-12-2006	Active	NO
5	U17121PB2006PLC030558	AVANI TEXTILES LIMITED	Director	29-09-2007	01-02-2007	Active	NO
6	U40104PB2007PLC031428	AVANI POWER LIMITED	Director	17-10-2007	17-10-2007	Active	NO
7	U17200PB2010PLC033529	AVANI COTEX LIMITED	Director	20-01-2010	20-01-2010	Active	NO

Name :

Kamla Devi

Designation :

Director

Address :

Kothi No. 1, Mann Colony, College Road, Sangrur – 148001, Punjab, India

Date of Birth/Age :

15.03.1944

Date of Appointment :

29.09.2007

DIN No. :

00360354

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	U15141PB1999PLC022253	SANGRUR AGRO LIMITED	Whole-time director	26-06-2000	26-06-2000	31-03-2010	Active	NO
2	U31102PB2002PLC025027	SANGRUR INDUSTRIAL CORPORATION LIMITED	Alternate director	25-02-2003	25-02-2003	-	Active	NO
3	U17121PB2006PLC030558	AVANI TEXTILES LIMITED	Director	29-09-2007	01-02-2007	-	Active	NO
4	U31909PB1993PLC013095	PUNJAB TRANSFORMERS AND ELECTRONICS LIMITED	Whole-time director	01-04-2010	01-04-2010	-	Active	NO

Name :

Mr. Ravi Kansal

Designation :

Director

Address :

H No. 218, W No. 10-A, Bus Stand Road, Dhuri, Sangrur – 148001, Punjab, India

Date of Birth/Age :

28.11.1963

Date of Appointment :

29.09.2007

DIN No. :

00027824

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	U15310PB1996PLC017918	ARPAN FOODS LIMITED	Whole-time director	01-07-2014	25-03-1996	Active	NO
2	U15313PB1992PLC012560	HANUMAN ROLLER FLOUR MILLS LIMITED	Director	28-01-2004	28-01-2004	Active	NO
3	U45202PB2006PLC029834	TRIDEV COMMODITIES LIMITED	Director	02-03-2006	02-03-2006	Active	NO
4	U17121PB2006PLC030558	AVANI TEXTILES LIMITED	Director	29-09-2007	01-02-2007	Active	NO
5	U51909DL2006PLC154416	BAL GOPAL IMPEX LIMITED	Director	30-09-2011	30-09-2011	Active	NO

Name :

Mr. Bhuvan Goyal

Designation :

Director

Address :

H No. 43, Mubarak Kothi, Dhuri Road, Sangrur – 148001, Punjab, India

Date of Birth/Age :

08.08.1984

Qualification :

Chartered Accountant

Date of Appointment :

27.09.2010

DIN No. :

02487739

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	U67200PB1994PTC014166	SGA INSURANCE SURVEYORS AND LOSS ASSESSORS PRIVATE LIMITED	Director	01-01-2009	01-01-2009	16-01-2009	Active	NO
2	U17121PB2006PLC030558	AVANI TEXTILES LIMITED	Director	27-09-2010	05-10-2009	-	Active	NO
3	U45209CH2010PTC032102	SGA CONSTRUCTIONS PRIVATE LIMITED	Director	18-03-2010	18-03-2010	-	Active	NO
4	U74140CH2010PTC032248	SGA CONSULTANCY SERVICES PRIVATE LIMITED	Director	26-05-2010	26-05-2010	-	Active	NO
5	U52399CH2013PTC034758	LIBAAS TRENDZ (INDIA) PRIVATE LIMITED	Director	04-10-2013	04-10-2013	-	Active	NO

Name :

Kewal Krishan Singla

Designation :

Director

Address :

H No. 69, Good Earth Colony, Near Hem Bagh, Patiala - 147001, Punjab, India

Date of Birth/Age :

05.10.1951

Date of Appointment :

27.09.2010

DIN No. :

03246462

KEY EXECUTIVES

Name :	Mr. Pankaj Mitthal
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2013

NOTE: SHAREHOLDING DETAILS FILE ATTACHED.

As on 27.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	97.39
Directors or relatives of Directors	0.94
Other top fifty shareholders	1.67
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Supplier of Cotton Yarn.

Products :

Item Code No. (ITC Code)	Product Description
52051110	Cotton Yarn

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· State Bank of Patiala, Commercial Branch, Ludhiana - 148001, Punjab, India

· Sate Bank of India, Main Branch, Patiala Gate, Sangrur - 148001, Punjab, India

· Bank of Baroda, Opposite Kaula Park, Sangrur - 148001, Punjab, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Rupee term loans from banks	700.967	869.049
Loans taken for vehicles	0.823	0.242
SHORT TERM BORROWINGS
Working capital loans from banks	711.889	507.791
Total	1413.679	1377.082

Banking Relations :	--
Auditors :
Name :	Mohit Naresh and Associates Chartered Accountants
Address :	Nabha Gate, Opposite Sharma Sweets, Sangrur – 148001, Punjab, India
Income-tax PAN of auditor or auditor's firm :	BNLPP5558H
Associate :	Avani Cotex Limited, India CIN No.: U17200PB2010PLC033529

CAPITAL STRUCTURE

As on 27.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
58,000,000	Equity Shares	Rs.10/- each	Rs. 580.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
57,610,000	Equity Shares	Rs.10/- each	Rs. 576.100 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	576.100	572.600	571.100
(b) Reserves & Surplus	(137.907)	(190.182)	35.445
(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)	438.193	382.418	606.545
(3) Non-Current Liabilities
(a) long-term borrowings	933.642	1089.476	939.849
(b) Deferred tax liabilities (Net)	0.000	0.000	39.997
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	933.642	1089.476	979.846
(4) Current Liabilities
(a) Short term borrowings	711.889	507.791	1422.842
(b) Trade payables	243.631	32.013	48.197
(c) Other current liabilities	50.188	160.908	302.940
(d) Short-term provisions	0.300	0.000	11.200
Total Current Liabilities (4)	1006.008	700.712	1785.179
TOTAL	2377.843	2172.606	3371.570
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1390.523	1395.271	1432.270
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	13.498	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1.400	1.400	0.900
(c) Deferred tax assets (net)	45.762	75.109	0.000
(d) Long-term Loan and Advances	5.761	5.809	6.036
(e) Other Non-current assets	0.000	0.530	12.142
Total Non-Current Assets	1456.944	1478.119	1451.348
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	685.850	518.492	1600.094
(c) Trade receivables	175.182	88.948	165.832
(d) Cash and cash equivalents	6.497	34.641	76.791
(e) Short-term loans and advances	51.246	50.478	62.265
(f) Other current assets	2.124	1.928	15.240
Total Current Assets	920.899	694.487	1920.222
TOTAL	2377.843	2172.606	3371.570

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	2931.385	2995.491	2424.675
		Other Income	23.556	78.305	22.357
		TOTAL (A)	2954.941	3073.796	2447.032
Less	EXPENSES
		Cost of Materials Consumed	2081.774	2219.122	2219.919
		Purchases of Stock-in-Trade	4.350	58.175	13.457
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	19.914	408.398	-473.168
		Employees benefits expense	113.265	89.716	84.993
		Other expenses	401.251	377.597	338.533
		TOTAL (B)	2620.554	3153.008	2183.734
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		334.387	(79.212)	263.298
Less	FINANCIAL EXPENSES (D)		174.057	181.262	132.012
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		160.330	(260.474)	131.286
Less/ Add	DEPRECIATION/ AMORTISATION (F)		78.327	78.327	77.122
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		82.003	(338.801)	54.164
Less	TAX (H)		29.647	(115.106)	36.872
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		52.356	(223.695)	17.292
	EARNINGS IN FOREIGN CURRENCY
		FOB value of exports	625.408	1192.218	706.916
	TOTAL EARNINGS		625.408	1192.218	706.916
	IMPORTS		175.500	4.866	4.562
	Earnings / (Loss) Per Share (Rs.)		0.87	(3.91)	0.30

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.77	(7.28)	0.71
Net Profit Margin (PBT/Sales)	(%)	2.80	(11.31)	2.23
Return on Total Assets (PBT/Total Assets}	(%)	3.54	(16.16)	1.61
Return on Investment (ROI) (PBT/Networth)		0.19	(0.89)	0.09
Debt Equity Ratio (Total Debt/Networth)		3.76	4.18	3.90
Current Ratio (Current Asset/Current Liability)		0.92	0.99	1.08

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	571.100	572.600	576.100
Reserves & Surplus	35.445	(190.182)	(137.907)
Net worth	606.545	382.418	438.193
long-term borrowings	939.849	1089.476	933.642
Short term borrowings	1422.842	507.791	711.889
Total borrowings	2362.691	1597.267	1645.531
Debt/Equity ratio	3.895	4.177	3.755

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2424.675	2995.491	2931.385
		23.542	(2.140)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2424.675	2995.491	2931.385
Profit	17.292	(223.695)	52.356
	0.71%	(7.47%)	1.79%

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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10343126	13/08/2012 *	250,000,000.00	STATE BANK OF PATIALA	COMMERICAL BRANCH, LUDHIANA, PUNJAB - 141001, INDIA	B57340812
2	10266499	01/03/2014 *	330,000,000.00	STATE BANK OF PATIALA	COMMERCIAL BRANCH, LUDHIANA, PUNJAB - 148001, INDIA	C01191659
3	10087617	20/12/2007	170,000,000.00	BANK OF BARODA	OPPOSITE KAULA PARK, SANGRUR, PUNJAB - 148001, INDIA	A32445355
4	10087611	20/12/2007	250,000,000.00	PUNJAB NATIONAL BANK	THE MALL, PATIALA, PUNJAB - 147001, INDIA	A32412819
5	10050848	13/08/2012 *	520,000,000.00	STATE BANK OF PATIALA	MAIN BRANCH, BARA CHOWK, SANGRUR, PUNJAB - 148001, INDIA	B57106684

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Intercorporate borrowings	211.312	193.027
Loans and advances from directors	20.540	27.158
Total	231.852	220.185

CHANGE OF ADDRESS

The registered office of the company has been shifted from Sibian Road, Sangrur – 148001, Punjab, India to the present address w.e.f. 08.07.2011.

FINANCIAL RESULTS

The company has achieved a turnover of Rs. 2931.385 Millions during the current financial year which shows a slight decrease as compare to the turnover of last f/y 2011-12 Rs. 2995.491 Millions. However the company has maintained the capacity utilization during the current financial year. The prices of cotton and cotton yarn have lowered down during the f/y 2012-13 as compared to f/y 2011-12. The shareholders will be happy to know that with the untiring efforts of all the staff, workers and management of the company, the company was able to come through the financial crisis suffered during the f/y 2011-12 and has achieved a cash profit of Rs. 160.330 Millions during the financial year 2012-13. Moreover your directors are hopeful that the company will be able to cover up the losses incurred in the earlier years in a very quick time.

FIXED ASSETS

Tangible Assets

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Motor Vehicles

· Office Equipment

· Other Equipments

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.61.29
UK Pound	1	Rs.98.62
Euro	1	Rs.78.15

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	RAS
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--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		27

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.