MIRA INFORM REPORT

Report No. :	329091
Report Date :	29.06.2015

IDENTIFICATION DETAILS

Name :	RSWM LIMITED (w.e.f.17.11.2006)
Formerly Known As :	RAJASTHAN SPINNING AND WEAVING MILLS LIMITED
Registered Office :	Kharigram, P. O. Gulabpura, Bhilwara - 311021, Rajasthan
Tel No.:	91-120-4390300
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	17.10.1960
Com. Reg. No.:	17-008216
Capital Investment / Paid-up Capital :	Rs.333.978 Million
CIN No.: [Company Identification No.]	L17115RJ1960PLC008216
TIN No.:	Not Available
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	JDHR02418D / JDHR02137C
PAN No.: [Permanent Account No.]	AAACR9700M
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing of Yarn and Fabric and Denim.
No. of Employees :	15902 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 13000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject was incorporated in the year 1960, It is the flagship company of the LNJ Bhilwara group. It is an old and established company having fine track record. Fundamental of the company seems to be strong and healthy. The rating also takes into consideration good networth position of the company. Trade relations are fair. Business is active. Payment terms are reported to be regular and as per commitments. The company can be considered good for normal 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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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	FITCH
Rating	Long Term Issuer Rating = IND A
Rating Explanation	Have adequate degree of safety and carry low credit risk
Date	03.07.2014

Rating Agency Name	FITCH
Rating	Short Term =IND A1
Rating Explanation	Have very strong degree of safety and carry lowest credit risk
Date	03.07.2014

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 31-03-2013.

INFORMATION DENIED BY

Name :	Mr. Manoj Sharma
Designation :	Account Department
Contact No.:	91-120-4390300
Date :	24.06.2015

LOCATIONS

Registered Office/ Factory 1 :	Kharigram, P. O. Gulabpura, Bhilwara - 311021, Rajasthan, India
Tel. No.:	91-1482-223144-50
Fax No.:	91-1482-223361
E-Mail :	molfin@lnjb.com info@bhilwara.com skg@lnjbhilwara.com rswm.investor@lnjbhilwara.com
Website :	http://www.rswm.in
Corporate Office :	Bhilwara Towers, A-12, Sector–1, Post Box No. 185, Noida - 201301, Uttar Pradesh, India
Tel. No.:	91-120-4390300
Fax No.:	91-120-2531648
E-Mail :	molfin@lnjb.com skg@lnjb.com
Factory 2 :	Mayur Nagar, Lodha, P.O. Banswara - 327001, Rajasthan, India
Factory 3 :	Mandpam, Bhilwara - 311001, Rajasthan, India
Factory 4 :	Rishabhdev, District Udaipur - 313802, Rajasthan, India
Factory 5 :	Ringas, District Sikar - 332404, Rajasthan, India
Factory 6 :	LNJ Nagar, Mordi, P.O. Banswara - 327001, Rajasthan, India
Factory 7 :	City Palace Complex, Chauri Sarak Road, Chouri Sadak, Ludhiana - 141008, Punjab, India
Tel. No.:	91-161-2725169
Marketing/ Sales Offices :	Located at: · jKolkata · Bangalore · New Delhi · Ludhiana · Bhilwara · Ichalkaranji · Indore · Kanpur · Tirupur · Ahmedabad
Regional Marketing Offices :	No. 1, D’ wing, 5^th Floor, Opp. L And T Gate No. 6, Saki Vihar Road, Powai, Andheri (E) Mumbai-400072, Maharashtra, India
Overseas Marketing Offices :	Located at : Italy Belgium UK

DIRECTORS

As on 31.03.2014

Name :	Mr. L. N. Jhunjhunwala
Designation :	Chairman - Emeritus
Name :	Mr. Ravi Jhunjhunwala
Designation :	Chairman
Date of Birth/ Age :	28.10.1955
Qualification :	B.Com, (Hons.) MBA
Expertise in specific functional areas :	Industrialist with diversified business experience
Date of Appointment :	18.05.1979
Other Directorship :	· AD Hydro Power Limited · Bhilwara Energy Limited · Bhilwara Green Energy Limited · BSL Limited · Cheslind Textiles Limited · HEG Limited · India Glycols Limited · Indo Canadian Consultancy Services Limited · JK Lakshmi Cement Limited · Malana Power Company Limited · Maral Overseas Limited · NJC Hydro Power Limited
Name :	Mr. Shekhar Agarwal
Designation :	Vice Chairman
Date of Birth/ Age :	09.10.1952
Qualification :	B. Tech. (M.E.), M. Sc. (Chicago)
Expertise in specific functional areas :	Industrialist with rich experience of Textile Industry
Date of Appointment :	13.02.1984
Other Directorship :	· Bhilwara Technical Textiles Limited · BSL Limited · Essay Marketing Company Limited · HEG Limited · Maral Overseas Limited
Name :	Mr. Arun K Churiwal
Designation :	Managing Director and Chief Executive Officer
Date of Birth/ Age :	15.05.1950
Qualification :	B.A. (Hons)
Expertise in specific functional areas :	Rich Experience of Textile Industry
Date of Appointment :	23.10.2003
Other Directorship :	· BSL Limited · La Opala RG Limited · LNJ Financial Services Limited
Name :	Mr. Riju Jhunjhunwala
Designation :	Joint Managing Director
Date of Birth/ Age :	13.01.1979
Qualification :	Graduate in Business Management Studies
Expertise in specific functional areas :	Industrialist with diversified business experience.
Date of Appointment :	01.01.2013
Other Directorship :	· Bhilwara Energy Limited · Bhilwara Green Energy Limited · Bhilwara Infotechnology Limited · Bhilwara Technical Textiles Limited · Chango Yangthang Hydro Power Limited · Cheslind Textiles Limited · HEG Limited · LNJ Power Ventures Limited · NJC Hydro Power Limited
Name :	Mr. Kamal Gupta
Designation :	Director
Date of Birth/ Age :	12.02.1946
Qualification :	FCA, FICWA, Ph. D
Expertise in specific functional areas :	Consultant in the area of Finance, Accounting and Corporate Laws, Former Technical Director of the Institute of Chartered Accountants of India. He is renowed author of various books in Auditing and other subjects.
Date of Appointment :	26.12.1987
Other Directorship :	· AD Hydro Power Limited · Bhilwara Energy Limited · HEG Limited · Malana Power Company Limited · Maral Overseas Limited · PNB Gilts Limited
Name :	Mr. D N Davar
Designation :	Director
Date of Birth/ Age :	08.08.1934
Qualification :	B.Com (Hons), M.A - Economics, CAIIB, Fellow of the Economic Development Institute of the World Bank.
Expertise in specific functional areas :	He worked in Senior Managerial Positions with Punjab National Bank from 1958-68 and with IFCI from 1968-1992. He took retirement from IFCI in 1992 as Executive Chairman, a position he held for eight years. He is a part time consultant to World Bank, UNIDO and Kreditanstalt fur Weideraufbua (KFW). He holds a Master’s degree in Economics and CAIIB.
Date of Appointment :	10.11.2004
Other Directorship :	· Adayar Gate Hotels Limited · Ansal Properties and Infrastructure Limited · Cimmco Limited · HEG Limited · Hero Fincorp Limited · Landmark Property Development Co. Limited · Mansingh Hotels and Resorts Limited · Maral Overseas Limited · OCL India Limited · Sandhar Technologies Limited · Titagarh Marine Limited · Titagarh Wagons Limited
Name :	Mr. Sushil Jhunjhunwala
Designation :	Director
Date of Birth/ Age :	23.08.1950
Qualification :	B.Com
Expertise in specific functional areas :	He is an eminent industrialists having rich experience. He is presently Director in well-known company BSL Limited, LA OPALA RG Limited and Genesis Exports Limited.
Date of Appointment :	29.04.2009
Other Directorship :	· BSL Limited · Genesis Exports Limited · La Opala RG Limited
Name :	Mr. A. N. Choudhary
Designation :	Director
Date of Birth/ Age :	06.03.1944
Qualification :	B.Com, LLB, FCA, FCS
Expertise in specific functional areas :	He is graduated in Commerce and also a fellow member of ICSI and ICAI. He also holds law degree. Mr. Choudhary has rich and diversified experience of textile industry.
Date of Appointment :	24.07.2009
Other Directorship :	· BSL Limited · Vitarich Agro Food (India) Limited
Name :	Mr. P. S. Dasgupta
Designation :	Director
Date of Birth/ Age :	30.06.1955
Qualification :	B.A. (Hons.), LLB, Post Graduate Diploma-Corporate Laws & Labour Laws.
Expertise in specific functional areas :	Renowned International Corporate Lawyer and represents a leading law firm in Delhi
Date of Appointment :	24.07.2013
Other Directorship :	· Asian Hotels (North) Limited · Bhilwara Technical Textiles Limited · Cummins India Limited · Ester Industries Limited · Interstar Finance Services Limited · Maral Overseas Limited · Otis Elevators Co. (India) Limited · Timken India Limited · Tricone Projects India Limited
Name :	Mr. J. C. Laddha
Designation :	Executive Director
Date of Birth/ Age :	12.12.1949
Qualification :	B.Com., F.C.A.
Date of Appointment :	01.01.1990

KEY EXECUTIVES

Name :	Mr. Surender Gupta
Designation :	Company Secretary
CORPORATE OFFICE (As on 31.03.2014)
Name :	Mr. Prakash Maheshwari
Designation :	Chief Executive (Corporate Management Services)
Name :	Mr. B. M. Sharma
Designation :	Chief Financial Officer
Name :	Mr. T. Dev Joshi
Designation :	Chief Human Resource Officer
Name :	Mr. M. L. Jhunjhunwala
Designation :	President, Mumbai
BUSINESS HEADS (As on 31.03.2014)
Name :	J. C. Laddha
Designation :	Chief Executive (Yarn and TPP)
Name :	S. C. Garg
Designation :	Chief Executive (Melange yarn)
Name :	Prabir Bandyopadhyay
Designation :	Chief Executive (Denim)
Name :	Mr. Surender Gupta
Designation :	Company Secretary
Name :	Mr. Manoj Sharma
Designation :	Account Department

SHAREHOLDING PATTERN

As on 31.03.2015

Category of shareholders	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1808068	7.81
Bodies Corporate	5163816	22.31
Sub Total	6971884	30.12
(2) Foreign
Bodies Corporate	4934770	21.32
Sub Total	4934770	21.32
Total shareholding of Promoter and Promoter Group (A)	11906654	51.44
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1580254	6.83
Financial Institutions / Banks	15120	0.07
Central Government / State Government(s)	1732	0.01
Insurance Companies	138283	0.60
Foreign Institutional Investors	100	0.00
Sub Total	1735489	7.50
(2) Non-Institutions
Bodies Corporate	1949559	8.42
Individuals
Individual shareholders holding nominal share capital up to Rs. 1 lakh	3621149	15.64
Individual shareholders holding nominal share capital in excess of Rs. 1 lakh	2541989	10.98
Any Others (Specify)	1393849	6.02
Trusts	100	0.00
Foreign Corporate Bodies	418500	1.81
Non Resident Indians	975249	4.21
Sub Total	9506546	41.07
Total Public shareholding (B)	11242035	48.56
Total (A)+(B)	23148689	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	23148689	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Yarn and Fabric and Denim.

Products :

(As on 31.03.2014)

Product Description	Item Code No. (ITC Code)
Polyester Viscose Blended Yarn	551100
Polyester Viscose Blended Fabric	551500
Cotton Yarn	520500

Brand Names :

(As on 31.03.2014)

“MAYUR SUITINGS”

Agencies Held :

--

Exports :

Not Available

Imports :

Not Available

Terms :

Selling :

Not Available

Purchasing :

Not Available

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Available
Name of the Person :	Not Available
Contact No.:	Not Available
Since How Long Known :	Not Available
Experience :	Not Available
Maximum Limit Dealt :	Not Available
Remark :	Not Available

Customers :

Reference :	Not Available
Name of the Person :	Not Available
Contact No.:	Not Available
Since How Long Known :	Not Available
Experience :	Not Available
Maximum Limit Dealt :	Not Available
Remark :	Not Available

No. of Employees :

15902 (Approximately)

Bankers :

· State Bank of Bikaner and Jaipur

· Axis Bank Limited

· Bank of Baroda

· Central Bank of India

· Dena Bank

· Export-Import Bank of India

· ICICI Bank Limited

· Oriental Bank of Commerce

· Punjab National Bank

· State Bank of India

· State Bank of Mysore

· UCO Bank

· Union Bank of India

· Syndicate Bank

Facilities :

SECURED LOANS	31.03.2015 Rs. In Million	31.03.2014 Rs. In Million
LONG TERM BORROWINGS
Term Loans
From Banks		4166.507
From Other Parties (FIs)		1892.900
SHORT TERM BORROWINGS
Loan repayable on demand From Banks		4114.657
From Others		475.000
Total	NA	10649.064

Notes (As on 31.03.2014)

Short Term Borrowings

1. Secured loans repayable on demand include working capital loans secured by hypothecation of raw materials, stock in process, finished goods, semi-finished goods, stores, spares, book debts and other current assets as well as second charge on fixed assets of the company on pari passu basis.

2. All loans repayable on demand carry floating interest rate of 10.25% to 13.00%.

Auditors 1 :
Name :	S. Bhargava Associates Chartered Accountants
Address :	“Vishwa Shila”, House No. 1, Pareek College Road, Bani Park, Jaipur – 302006, Rajasthan, India
Auditors 2 :
Name :	A. L. Chechani and Company Chartered Accountants
Memberships :	--
Collaborators :	--
Associate : (As on 31.03.2014)	· LNJ Power Ventures Limited
Enterprises over which person is able to exercise significant influence : (As on 31.03.2014)	· Aadi Marketing Co. Private Limited · A.D. Hydro Power Limited · Jyoti Knits Private Limited · Kalati Holdings Private Limited · Agarwal Finestate Private Limited · Karishma Fabrics · Agarwal Trademart Private Limited · LNJ Financial Services Limited · Apeksha Vyapaar Private Limited · Malana Power Company Limited · Bhilwara Energy Limited · Maral Overseas Limited · Bhilwara Services Private Limited · Mayur Knits Private Limited · Bhilwara Technical Textiles Limited · Maheshwari Vastra Bhandar · BMD Power Private Limited · Mandapam Vikas Private Limited · BMD Private Limited · Mandawa Niyojan Private Limited · BMD Renewable Energy Private Limited · Nikita Electrotrades Private Limited · BSL Limited · Nivedan Vanijiya Niyojan Limited · Churiwala Properties and Investments Private Limited · Prapti Apparels Company Private Limited · Diplomat Leasing and Finance Private Limited · PRC Niyojan Private Limited · Essay Marketing Co. Limited · Purvi Vanijya Niyojan Limited · Giltedged Industrial Securities Limited · Raghav Commercial Limited · HEG Limited · Raghav Knits and Textiles Private Limited · India Texfab Marketing Limited · Shashi Commercial Co. Limited · Indo Canadian Consultancy Services Limited · Sudiva Spinners Private Limited · Investors India Limited · Ultramarine Impex Private Limited · Veronia Tie-up Private Limited
Enterprises that directly or indirectly through one or more intermediaries, control or are controlled by or are under common control with the reporting enterprise (this includes holding companies, subsidiaries and fellow subsidiaries : (As on 31.03.2014)	· Cheslind Textiles Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
47500000	Equity Shares	Rs.10/- each	Rs.475.000 Million
2500000	Optionally Convertible Redeemable Preference Shares	Rs.150/- each	Rs.375.000 Million
	Total		Rs.850.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
23148689	Equity Shares	Rs. 10/- each	Rs.231.487 Million

1. Details of equity shares held by shareholders holding more than 5% shares:

Name of Shareholder	Number of Shares	% holding
Microbase Limited	3650970	15.77
IDFC Sterling Equity Fund	1572818	6.79
LNJ Financial Services Limited	1767394	7.63
Purvi Vanijya Niyojan Limited	1218431	5.26

2. There are no shares issued for consideration other than cash in the last 5 financial years. However, 13513607 Equity shares of Rs.10/- each were issued as fully paid up bonus shares by capitalisation of reserves in earlier years. 1228689 Equity shares of Rs.10/- each were issued for consideration other than cash, pursuant to the scheme of merger of erstwhile Jaipur Polyspin Limited and Mordi Textiles and Processors Limited as approved by the Hon’ble High Court of Rajasthan.

3. The number of issued, subscribed and fully paid up shares remained unchanged during the year as there were no buy back or issue of share capital.

4. The Company has only one class of equity shares having a par value of Rs.10/-. Each holder of equity shares is entitled to one vote per share. There are no restrictions attached to any equity shares. The Company declares and pays dividends, if any, in Indian rupees. During the year ended 31st March 2014, the amount of per share dividend recognised as distribution to equity shareholders was Rs.12.50 (Previous year Rs.10/-). 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 of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the respective shareholders.

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2014	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	333.978	231.487	231.487
(b) Reserves & Surplus	4116.042	3708.985	3036.134
(c) Government Capital Grants	0.000	13.236	18.124
Total Shareholders’ Funds (1) + (2)	4450.020	3953.708	3285.745
(3) Non-Current Liabilities
(a) long-term borrowings	6691.780	6062.963	7126.534
(b) Deferred tax liabilities (Net)	827.804	720.316	485.727
(c) Other long term liabilities	71.866	76.764	55.990
(d) long-term provisions	38.708	178.909	172.576
Total Non-current Liabilities (3)	7630.158	7038.952	7840.827
(4) Current Liabilities
(a) Short term borrowings	4473.521	4589.657	4666.297
(b) Trade payables	870.495	363.394	411.614
(c) Other current liabilities	2651.485	2242.845	2011.971
(d) Short-term provisions	306.288	358.042	288.171
Total Current Liabilities (4)	8301.789	7553.938	7378.053
TOTAL	20381.967	18546.598	18504.625
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	11607.531	9267.683	9593.196
(ii) Intangible Assets	0.000	59.529	64.877
(iii) Capital work-in-progress	0.000	139.854	111.466
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	906.716	1273.578	1106.714
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	292.678	393.415	240.778
(e) Other Non-current assets	43.311	11.196	11.211
Total Non-Current Assets	12850.236	11145.255	11128.242
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	3986.392	3762.511	3997.147
(c) Trade receivables	1969.597	2368.627	2160.747
(d) Cash and cash equivalents	45.680	14.746	19.103
(e) Short-term loans and advances	587.927	357.544	283.632
(f) Other current assets	942.135	897.915	915.754
Total Current Assets	7531.731	7401.343	7376.383
TOTAL	20381.967	18546.598	18504.625

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Income	30229.800	28700.535	24532.920
		Other Income	119.400	255.176	228.352
		TOTAL (A)	30349.200	28955.711	24761.272
Less	EXPENSES
		Cost of Materials Consumed	17515.500	16812.034	14776.742
		Purchases of Stock-in-Trade	323.500	529.655	218.653
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	43.700	175.962	(546.353)
		Employees benefits expense	2769.800	2328.296	2042.502
		Power Fuel	2684.200	0.000	0.000
		Other expenses	3238.000	5221.879	4958.016
		TOTAL (B)	26574.700	25067.826	21449.560
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3774.500	3887.885	3311.712
Less	FINANCIAL EXPENSES (D)		1252.200	1217.638	1212.906
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2522.300	2670.247	2098.806
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1352.700	1106.901	1084.538
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		1169.600	1563.346	1014.268
Less	TAX (H)		320.500	575.345	335.607
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		849.100	988.001	678.661
	EARNINGS IN FOREIGN CURRENCY
		FOB value of Exports	NA	8621.237	6861.837
	IMPORTS
		Raw Materials		261.845	271.975
		Components and Spare Parts		212.119	161.926
		Capital Goods		105.932	286.730
	TOTAL IMPORTS		NA	579.896	720.631
	Earnings/ (Loss) Per Share (Rs.)		36.68	42.68	29.32

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	NA	1463.725	1305.659
Cash generated from operations	NA	3735.247	2617.686

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT/Sales)	(%)	2.81	3.44	2.77
Operating Profit Margin (PBDIT/Sales)	(%)	12.49	13.55	13.50
Return on Total Assets (PBT/Total Assets}	(%)	6.01	9.12	5.87
Return on Investment (ROI) (PBT/Networth)		0.26	0.40	0.31
Debt Equity Ratio (Total Debt /Networth)		2.51	2.69	3.59
Current Ratio (Current Asset/Current Liability)		0.91	0.98	1.00

STOCK PRICES

Face Value	Rs.10/-
Market Value	Rs.260/-

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	231.487	231.487	333.978
Reserves & Surplus	3036.134	3708.985	4116.042
Government capital grants	18.124	13.236	0.000
Net worth	3285.745	3953.708	4450.020
long-term borrowings	7126.534	6062.963	6691.780
Short term borrowings	4666.297	4589.657	4473.521
Current Maturities of Long-Term Debts	1305.659	1463.725	0.000
Total borrowings	13098.490	12116.345	11165.301
Debt/Equity ratio	3.986	3.065	2.509

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	24532.920	28700.535	30229.800
		16.988	5.328

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	24532.920	28700.535	30229.800
Profit	678.661	988.001	849.100
	2.77%	3.44%	2.81%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	Yes
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

Case Status : PENDING

Status of INCOME TAX APPEAL 134 of 2014

C.I.T (TDS) JAIPUR Vs. M/S RSWM LMITED

Pet’s Adv. : RB MATHUR

Res’s Adv. :

Notice Date : Thursday, May 07, 2015 Service Date : Wednesday, July 15, 2015 Last

Listed On : 05.11.2014 Court No. : 1

Category : NOTICE AND/OR SERV / INCOMPLETED

CONNECTED MATTER (S)

ITA 135 of 2014

UNSECURED LOAN:

Particulars	31.03.2015	31.03.2014 Rs. In Million
LONG TERM BORROWINGS
Deferred payment Liabilities		3.556
Total	NA	3.556

OPERATIONAL PERFORMANCE (As on 31.03.2014)

During the year, the Company continued to march ahead and reported a record performance on the strength of its strong presence in the domestic and export markets. The Company continued to work on new initiatives and continuous improvements in the product-mix, penetration in marketing strategy, economic cost of production. The Company also reaped the advantages of continuous expansions undertaken in the past few years. The Company also gained from the partial recovery in the US and the Euro Zone economics.

The Company registered increase of 16.72% in its gross turnover from Rs.24710.400 Million in 2012-13 to Rs.28843.200 Million in 2013-14. The Export turnover also registered increase at Rs.9225.600 Million in 2013-14 as against Rs.7201.900 Million in 2012-13 whereas Domestic turnover increased to Rs.19617.600 Million in 2013-14 from Rs.17508.500 Million in the previous year.

EXPANSION AND MODERNISATION (As on 31.03.2014)

The completion of the expansion programme comprising of 51840 spindles at the Kharigram Unit and setting up spinning facility at Denim Unit at a capital outlay of Rs.3550.000 Million. During the year the Company reaped the full benefits of above expansion and the growth in the turnover and profitability of the Company had been partially on account of the above expansion. The Company also completed the up-gradation programme of Effluent Treatment Plant (ETP) at the Kharigram, Ringas, Denim and TPP Plants and Sewerage Treatment Plant (STP) as per schedule. The encouraged by the performance of the Company due to above, the Directors chalked out a further expansion programme involving a capital outlay of Rs.3435.000 Million comprising of setting up of 25000 spindles for Melange Yarn at Mandpam Unit, setting up of 50MT capacity Green Polyester Fibre Project at Ringas and installation of 50 looms at Mordi, Banswara Unit. The implementation of the above expansion programme has started and likely to be completed during the current financial year. The Directors are hopeful that the above expansions will lead to significant growth in the turnover and profitability of the Company.

Expansion programme will lead to the Company in the direction to achieve the targets laid down in pursuant of the ‘Lakshya 2016’ programme with a targeted turnover of Rs.45000.000 Million and involving a capex of Rs.15000.000 Million in stages to be achieved by 2016.

MANAGEMENT DISCUSSION AND ANALYSIS (As on 31.03.2014)

GLOBAL ECONOMIC PROGRESSION

Global gross domestic product grew by 3% in 2013 against 3.1% in 2012 primarily due to the continuing economic volatility in the first half of the year. However trade picked up in the second half of 2013 and demand in advanced economies swelled primarily due to inventory re-stocking. In emerging market economies, an export rebound was the main driver behind this improved showing.

Outlook: IMF forecasts showed emerging markets still accounting for much of global growth, with their economies forecast to expand nearly four times as fast this year as advanced economies. As far as advanced economies are concerned, the US is expected to emerge as the key growth driver in the current year. The eurozone is turning the corner after recovering from recession and is expected to post positive economic growth in 2014.

Estimates: Global growth is projected to be slightly higher at around 3.7% in 2014, rising to 3.9% in 2015.

INDIA’S ECONOMIC PERFORMANCE (As on 31.03.2014)

India’s economic growth in 2013-14 has been estimated at 4.7%, marginally higher than in the previous year, mainly on the back of an improved performance in the agriculture and allied sectors as per the advanced estimates released by the Central Statistics Office (CSO).

For 2013-14, the CSO projected a growth rate of 4.6% in agriculture and allied sectors, up from 1.4% a year earlier. Manufacturing, however, is expected to have contracted by 0.2% compared with a growth of 1.1% in the previous year.

Per capita income at current prices during 2013-14 is estimated at Rs.0.075 Million compared with Rs.0.068 Million during 2012-13, a rise of 10.4%. More importantly, the current account deficit declined to US$35 billion in 2013-14 against US$88 billion in 2012-13, largely due to a steep decline in gold imports and a simultaneous increase in exports.

Gross Fixed Capital Formation (GFCF), an indicator of investment, is forecast at Rs.32.2 lac crore at current prices against Rs.30.7 lac crore in 2012-13. In terms of GDP at market prices, the rates of GFCF during 2013-14 are estimated at 28.5% against 30.4% in 2012-13.

Estimates: According to NCAER, India’s economic growth is likely to accelerate by 5.6% in 2014-15 from the projected growth of less than 5% in the fiscal ending in March 2014. The Asian Development Bank has projected India’s GDP growth at 5.5% for 2014-15, depending on its ability to implement structural reforms.

TEXTILE INDUSTRY (As on 31.03.2014)

India’s textile industry plays a significant role in the economic development of the country in terms of net foreign exchange earnings and employment generation. The industry contributes around 4% to India’s GDP, around 11% to the country’s export earnings and nearly 14% to industrial production, besides providing direct employment to over 45 million people.

The industry is self-reliant across the value chain, right from the availability of raw materials to the manufacture of garments. On the global front, the industry is the world’s second largest producer of textiles and accounts for around 4.5% share of the total global exports.

India has the highest loom capacity (including handlooms), accounting for 63% of the global market share. Furthermore, the industry accounts for around 24% of the world’s spindle capacity and 8% of the global rotor capacity. Despite its global positioning, the Indian textile industry comprises mostly small-scale, non-integrated spinning, weaving, finishing and apparel producing enterprises, making it a fragmented sector.

Cotton textiles continue to form the predominant base of the Indian textile industry, though other fibres have also gained preference in recent years. The advent of man-made fibres (MMF) has inspired a shift in consumer preferences from cotton textiles and brought about significant changes in the Indian textile industry as domestically-produced MMF textiles are finding a global presence.

India is the second largest polyester filament/fibre, viscose filament yarn and cotton producer. It is also the third largest producer of VSF and stands ninth in acrylic staple fibre production globally. In terms of consumption, India was the second largest PFY, PSF, VSF, VFY and cotton consumer. The polyester fibre outlook remains positive and demand is estimated to increase 6-7% from 2013 to 2016.

BUSINESS OPERATIONS (As on 31.03.2014)

RSWM manufactures yarns, fabrics and denims across eight locations in Rajasthan. Periodic investments in cutting-edge technology and skills enabled RSWM’s manufacture of quality products in line with international standards. Approximately, 32% of the Company’s products are exported to over 75 countries across Europe and the Middle East as well as South Africa, Australia, Korea, Belgium, Singapore, Italy and Egypt.

YARN BUSINESS (As on 31.03.2014)

Talking points, 2013-14

· Revenue increased by about 15% over 2012-13 even as production and sales volumes rose by 6.5% and 9.7% respectively

· Production and sales volumes of branded yarn ‘Ultima’ scaled by 40%

· Revenue from exports grew by 18%, driven by an increase in volumes

Snapshot

Having commenced business at Bhilwara in Rajasthan in 1961, the Company is credited with being among the frontrunners in laying the foundation of a flourishing textile sector in the state and, in turn, encouraging lateral growth.

RSWM features among the top 5 manufacturers of polyester viscoseblended yarn with a pan-India presence managed by its 10 regional marketing offices. Over 25% of the yarn output is marketed to brand-enhancing Indian textile players, namely Raymond Group, Siyaram Silk Mills Limited, Welspun Group, Alok Industries and Arvind, among others. The Company enjoys a global footprint extending across 78 nations.

MELANGE YARN – MAXIMUM VALUE-ADDED (As on 31.03.2014)

Talking points, 2013-14

· Production and sales volumes of melange yarn scaled 9.3% and 10.23% respectively

· Revenues increased by 32.45% from Rs.2680.000 Million in 2012-13 to Rs.3550.000 Million in 2013-14

Snapshot

This comprises among the highest value-added yarns in the Company’s product basket. Produced at the Company’s Mandpam plant, these yarns are made from cotton and blends used in the manufacture of knitwear and hosiery. These products generate a 50% premium over grey yarns but are quantitatively small when compared with the other segments. A majority of the output is marketed to domestic users.

FABRIC

Talking points, 2013-14

· Revenue increased by 11% from Rs.1780.000 Million in 2012-13 to Rs.1960.000 Million.

· Received strong institutional business for uniforms from some states.

Snapshot

RSWM manufactures a range of blended suiting fabrics marketed under the ‘Mayur’ brand through its robust network comprising more than 2,000 retailers pan-India. About 30% of its production is exported to quality-conscious customers across 26 nations.

DENIM

Talking points, 2013-14

· Revenue from the business increased by 13.20% from Rs.3106.900 Million in 2012-13 to Rs.3517.000 Million in 2013-14 thanks to improved realisations which neutralised a stagnant sales volume

· Focus on value-addition and introduction of a host of new products facilitated a growth in realisations

Snapshot

Although a relatively small segment, RSWM’s denim business enjoys rich credentials in terms of value-addition and customising fabrics around diverse applications. The state-of the- art manufacturing facilities house sophisticated equipment sourced from leading global brands and enjoy global certifications like Global Organic Textile Standards (GOTS), Global Recycle Standards, SA 8000, Organic Exchange (OE blended and/or OE 100), OEKO-TEX 100 and REACH.

INFORMATION TECHNOLOGY (As on 31.03.2014)

RSWM extensively leveraged IT tools in its operations to achieve greater productivity and efficiency. The Company invested in a specialized Enterprise Resource Planning (ERP) solution for textile companies and customised modules to cater to needs emanating from functional areas like finance and human resources. The ERP solution worked efficiently across manufacturing locations. The Company’s wellequipped IT team reassessed and standardised the security architecture; its invested prudently towards fortifying the same. In 2013-14, the IT team conducted training drills for freshers about software mechanisms (RAMCO/ TIM/BPCS). As far as the existing roster of employees was concerned, the Company conducted regular sessions to sharpen their skills to guarantee improved work and time management.

RSWM was well-protected thanks to its efficient data-recovery platform for ERP, e-mail system and seamless connection between all its plants/locations.

FINANCIAL PERFORMANCE (As on 31.03.2014)

RSWM reported a superior performance for the second successive year, which combined business growth, increased profitability and a stronger Balance Sheet despite a subdued business environment.

Net sales grew by 16.99% from Rs.24532.900 Million in 2012-13 to Rs.28700.500 Million in 2013-14. This growth was due to a superior performance across all business divisions; a majority of the growth was value-led, which also enhanced business profitability. A depreciated rupee made an important contribution to revenues.

Value-addition combined with disciplined shop-floor and other business operations shored the PBDIT – by 17.40% from Rs.3311.700 Million in 2012-13 to Rs.3887.800 Million in 2013-14. More importantly, operating margin moved up 5 bps despite the challenging business conditions.

As the interest liability and provision for depreciation remained at the previous year’s levels, while Profit after Tax grew by 45.57% from Rs.678.700 Million in 2012-13 to Rs.988.000 Million in 2013-14.

While growing business and profitability was among the top priorities of the Company, the management also focused on strengthening its Balance Sheet. While reserves increased by 22.16% from Rs.3036.100 Million as on March 31, 2013 to Rs.3709.000 Million as on March 31, 2014, overall debt (long-term and work capital loans) declined by 9.67% from Rs.11792.800 Million as on March 31, 2013 to Rs.10652.700 Million as on March 31, 2014 – showcasing the prudent deployment of business liquidity into de-leveraging the financial statements. As a result, the debt-equity ratio declined from 2.17x as on March 31, 2013 to 1.53x as on March 31, 2014. The book value per share increased from Rs.141.16 as on March 31, 2013 to Rs.170.22 as on March 31, 2014.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10489627	18/12/2014 *	520,000,000.00	SYNDICATE BANK	BUDH PLAZA 2ND BASANT VIHAR, OPP. CIRCUIT HOUSE, BHILWARA, RAJASTHAN - 311001, INDIA	C39350327
2	10490305	18/12/2014 *	1,430,000,000.00	CENTRAL BANK OF INDIA	BIJAINAGAR, BHILWARA, RAJASTHAN - 311021, INDIA	C40089757
3	10474920	01/12/2014 *	320,000,000.00	STATE BANK OF BIKANER AND JAIPUR	KHARIGRAM, GULABPURA, BHILWARA, RAJASTHAN - 311021, INDIA	C37056231
4	10443730	01/08/2014 *	95,000,000.00	STATE BANK OF BIKANER AND JAIPUR	KHARIGRAM, GULABPURA, BHILWARA, RAJASTHAN - 311021, INDIA	C15425879
5	10442614	01/08/2014 *	120,000,000.00	BANK OF BARODA	GULABPURA, BHILWARA, RAJASTHAN - 311021, INDIA	C17448408
6	10435750	12/11/2013 *	86,200,000.00	UNION BANK OF INDIA	15/251 RAJENDRA MARG, BHILWARA, RAJASTHAN - 311001, INDIA	B90792995
7	10435748	12/11/2013 *	267,400,000.00	UNION BANK OF INDIA	15/251 RAJENDRA MARG, BHILWARA, RAJASTHAN - 311001, INDIA	B91176685
8	10417538	12/11/2013 *	112,500,000.00	STATE BANK OF BIKANER AND JAIPUR	KHARIGRAM, GULABPURA, BHILWARA, RAJASTHAN - 311021, INDIA	B90513235
9	10329983	08/08/2012 *	402,500,000.00	DENA BANK	M-36, CONNAUGHT CIRCUS, NEW DELHI, DELHI - 110001,  INDIA	B58439159
10	10298225	27/01/2012 *	1,400,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENNTRE COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B32567588
11	10302297	27/01/2012 *	1,440,000,000.00	STATE BANK OF BIKANER AND JAIPUR	KHARIGRAM, GULABPURA, BHILWARA, RAJASTHAN - 311021, INDIA	B31633803
12	10294269	27/01/2012 *	595,000,000.00	ORIENTAL BANK OF COMMERCE	SHANTI BHAWAN, BHILWARA, RAJASTHAN - 311001, INDIA	B31644420
13	10054519	27/03/2009 *	250,000,000.00	STATE BANK OF BIKANER AND JAIPUR	KHARIGRAM, GULABPURA, RAJASTHAN - 311021, INDIA	A60601150
14	10055694	02/07/2012 *	66,500,000.00	ORIENTAL BANK OF COMMERCE	SHANTI BHAWAN, BHUPAL GANJ, BHILWARA, RAJASTHAN -  311001, INDIA	B44478980
15	10040542	27/03/2009 *	250,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE,  COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	A60540408
16	10034916	06/11/2009 *	70,000,000.00	CENTRAL BANK OF INDIA	PIPALI CHORAYA, BIJAI NAGAR, RAJASTHAN - 305624, INDIA	A72762065
17	10041347	27/03/2009 *	500,000,000.00	STATE BANK OF INDIA	13, DEEPAK BUILDING, NEHRU PLACE, NEW DELHI, DELHI  - 110019, INDIA	A60541711
18	10041349	29/07/2009 *	556,200,000.00	PUNJAB NATIONAL BANK	MID CORPORATE BRANCH, M I ROAD, JAIPUR, RAJASTHAN  - 302001, INDIA	A68084656
19	10041342	24/07/2009 *	130,000,000.00	STATE BANK OF INDORE	COMMERCIAL BRANCH, M-47, CONNAUGHT CIRCUS, NEW DELHI, DELHI - 110001, INDIA	A67261388
20	10022053	27/03/2009 *	500,000,000.00	STATE BANK OF BIKANER AND JAIPUR	KHARIGRAM, GULABPURS, RAJASTHAN - 311021, INDIA	A60606076
21	10020758	27/03/2009 *	1,000,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE,  COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	A60719960
22	10017317	27/03/2009 *	500,000,000.00	STATE BANK OF MYSORE	NO.3,4 & 5, DDA BUILDING, NEHRU PLACE, NEW DELHI, DELHI - 110019, INDIA	A62147574
23	10007935	27/03/2009 *	510,000,000.00	CENTRAL BANK OF INDIA	PIPALI CHORAYA,, BIJAINAGAR, RAJASTHAN - 305624, INDIA	A60342516
24	10005341	27/03/2009 *	520,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE,  COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	A60541257
25	10005105	27/03/2009 *	500,000,000.00	STATE BANK OF MYSORE	NO.3,4 & 5, DDA BUILDING, NEHRU PLACE, NEW DELHI,  DELHI - 110019, INDIA	A62153721
26	80007568	27/03/2009 *	100,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE,  COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	A60539079
27	80016859	27/03/2009 *	247,500,000.00	PUNJAB NATIONAL BANK	MID CORPORATE BRANCH, M I ROAD, JAIPUR, RAJASTHAN  - 302001, INDIA	A60597994
28	80016865	27/03/2009 *	247,500,000.00	UNION BANK OF INDIA	239, VIDHAN BHAWAN MARG, NARIMAN POINT, MUMBAI, MA  HARASHTRA - 400021, INDIA	A60664364
29	80016854	27/03/2009 *	105,000,000.00	PUNJAB NATIONAL BANK	MID CORPORATE BRANCH, M I ROAD, JAIPUR, RAJASTHAN  - 302001, INDIA	A60597515
30	80013179	27/03/2009 *	250,000,000.00	STATE BANK OF BIKANER AND JAIPUR	KHARIGRAM, GULABPURA, RAJASTHAN - 311021, INDIA	A60604832

FIXED ASSETS:

· Free Hold Land

· Lease Hold Land

· Buildings

· Plant and Machinery

· Furniture Fixture and Other

· Vehicles

· Office Equipments

· Electric Fitting and Water Supply Installation

· Computer Software

· Enabling Assets

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.63.61
UK Pound	1	Rs.99.79
Euro	1	Rs.71.16

INFORMATION DETAILS

Information done by :	NYA
Analysis Done by :	RSM
Report Prepared by :	SUJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		54

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.