MIRA INFORM REPORT

Report No. :	343620
Report Date :	01.10.2015

IDENTIFICATION DETAILS

Name :	ARVIND LIMITED (w.e.f.14.07.2008)
Formerly Known As :	ARVIND MILLS LIMITED
Registered Office :	Naroda Road, Ahmedabad – 380025, Gujarat
Tel No. :	91-79-30138000
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	01.06.1931
Com. Reg. No.:	04-000093
Capital Investment / Paid-up Capital :	Rs. 2582.400 Million
CIN No.: [Company Identification No.]	L17119GJ1931PLC000093
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Cotton Shirting, Denim, Knits and Bottom Weights (Khakis) Fabrics and Jeans and Shirts Garments.
No. of Employees :	18000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (70)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a one of the India’s leading vertically integrated textile companies with the presence of more than eight decades in the industry and it is among the largest denim manufacturers in the world. Subject is a well-established and reputed company having fine track record. The rating reflects wide experience of its promoters backed by strong growth potential associated with diversified brand portfolio and widespread retail distribution network. Rating also reflects Arvind’s healthy operational risk profile supported by adequate liquidity position and decent profitability margins of the company. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment. In view decent brand name backed by it resourceful promoter, 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	CARE
Rating	Commercial Paper issue = A1+
Rating Explanation	Very strong degree of safety and carry lowest credit risk.
Date	27.05.2015

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 31-03-2015.

INFORMATION DENIED BY

Name :	Mr. Ramnik
Designation :	Finance Controller
Contact No.:	91-79-22203030

LOCATIONS

Registered Office :	Naroda Road, Ahmedabad – 380025, Gujarat, India
Tel. No.:	91-79-30138000
Fax No.:	91-79-30138671
E-Mail :	india@arvindmills.com investor@arvind.com rv.bhimani@arvind.in feedback@arvind.com
Website :	http://www.arvind.com
Factory :	Santej Road, Near Khatrej Roads Kalol, Gandhinagar – 338272, Gujarat, India
Plant Locations :	Located at: v Lifestyle Fabrics-Denim, Naroda Road, Ahmedabad - 380025, Gujarat, India v Lifestyle Fabrics - Voiles, Ankur Textiles, Outside Raipur Gate, Ahmedabad - 380022, Gujarat, India v Lifestyle Fabrics-Shirting, Khakis and Knitwear, Santej, PO Khatrej, Taluka Kalol, District Gandhinagar - 382721, Gujarat, India v Lifestyle Apparel-Knits, Santej, PO Khatrej, Taluka Kalol, District Gandhinagar - 382721, Gujarat, India v Lifestyle Apparel-Jeans, # 26/2, 27/2, Kenchenahalli, Mysore Road, Near Bangalore University, Bangalore – 560059, Karnataka, India v Lifestyle Apparel-Shirts, # 23/1, Sonnenahalli Village, Sitarampalya Cross, ITPL Road, Brookfield, Mahadevpura Post, Bangalore – 560048, Karnataka, India v Lifestyle Apparel-Shirts, # 63/9, Doddathogur Village, Electronic City Post, Bangalore – 560100, Karnataka, India v Arvind Intex, Rajpur Road, Gomtipur, Ahmedabad - 380021, Gujarat, India v Arvind Polycot, Khatrej, Taluka Kalol, District Gandhinagar - 382721, Gujarat, India v Arvind Cotspin, D-64, MIDC, Gokul Shirgaon, Tal. Karveer, Kolhapur - 416234, Maharashtra, India
Branch Offices :	Located at: v Gandhinagar v Bangalore
Overseas Offices :	Located at: v USA v Bangladesh

DIRECTORS

As on 31.03.2015

Name:	Mr. Sanjay S. Lalbhai
Designation:	Chairman and Managing Director
Name:	Mr. Jayesh K. Shah
Designation:	Wholetime Director and Chief Financial Officer
Name :	Mr. Punit S. Lalbhai
Designation :	Executive Director
Name :	Mr. Kulin S. Lalbhai
Designation :	Executive Director
Name :	Dr. Bakul Dholakia
Designation :	Independent Director
Name :	Mr. Vallabh Bhanshali
Designation :	Independent Director
Name :	Mr. Dileep C. Choksi
Designation :	Independent Director
Name :	Ms. Renuka Ramnath
Designation :	Independent Director
Name :	Mr. Samir Mehta
Designation :	Independent Director
Name :	Mr. Nilesh Shah
Designation :	Independent Director

KEY EXECUTIVES

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

SHAREHOLDING PATTERN

As on 30.06.2015

Category of Shareholder	Total No. of Shares	As a %
A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2341906	0.91
Bodies Corporate	110717749	42.87
Sub Total	113059655	43.78
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	113059655	43.78
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	25083400	9.72
Financial Institutions / Banks	73024	0.03
Central Government / State Government(s)	500	0.00
Insurance Companies	15591817	6.04
Foreign Institutional Investors	37916794	14.69
Any Others (Specify)	963	0.00
Others	963	0.00
Sub Total	78666498	30.48
(2) Non-Institutions
Bodies Corporate	13107775	5.10
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	24553129	10.73
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	6984545	2.72
Any Others (Specify)	18427495	7.20
Trusts	2503	0.00
Clearing Members	357101	0.14
Others	16873407	6.53
Others	1194484	0.53
Sub Total	63072944	25.74
Total Public shareholding (B)	141739442	56.22
Total (A)+(B)	254799097	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	254799097	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Cotton Shirting, Denim, Knits and Bottom Weights (Khakis) Fabrics and Jeans and Shirts Garments.
Products :	Cotton Shirting Denim Knits and Bottom Weights (Khakis) Fabrics Jeans and Shirts Garments
Brand Names :	Arrow, US Polo, Izod, Elle, Cherokee
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :	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

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

No. of Employees :

18000 (Approximately)

Bankers :

• State Bank of India
• Bank of Baroda
• UCO Bank
• State Bank of Patiala
• HDFC Bank Limited
• Standard Chartered Bank
• ICICI Bank Limited
• Export-Import Bank of India
• Axis Bank Limited
• State Bank of Hyderabad
• IDBI Bank Limited
• Canara Bank

Facilities :

SECURED LOANS	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
LONG-TERM BORROWINGS
Term Loans From Banks	10869.600	10386.500
From Financial Institutions and Others	817.800	1132.300
SHORT TERM BORROWINGS
Working Capital Loans repayable on demand from Banks	10441.000	10058.100
Total	22128.400	21576.900

Notes:

LONG-TERM BORROWINGS

Nature of Security:

Term Loans of Rs. 14160.100 Million

i Loans amounting to Rs. 14078.600 Million are secured by (a) first charge on all the Immovable Properties, Movable Properties, Intangible Properties and General Assets of the Company presently relating to the Textile Plants excluding Immovable properties of Asoka Spintex Textile Plant and Arvind International Textile Plant and all Immovable Properties, Movable Properties, Intangible Properties and General Assets acquired by the Company at any time after execution of and during the continuance of the Indenture of Mortgage; (b) additional charge by way of mortgage on Immovable Properties at villages Jethlaj, Karoli, Vadsar, Moti Bhoyan, Santej and Khatrej; (c) charge on the Company’s Trademarks and (d) Secured by second charge on all the Company’s Current Assets both present and future relating to the Textile Plants.

Out of these Rs. 1363.02 Crores are additionally secured by first charge on Movable Fixed Assets of Jeans and Shirts Garment divisions at Bangalore.

ii Loans of Rs. 81.500 Million are secured by hypothecation of related vehicles.

SHORT TERM BORROWINGS

Nature of Security

Cash Credit and Other Facilities from Banks

Secured by first charge on all the Company’s Current Assets presently relating to the Textile Plants and all the Current Assets acquired by the Company at any time after the execution of and during the continuance of the Indenture of Mortgage. They are also secured by a second charge over all the Immovable Properties, Movable Properties, Intangible Properties and General Assets of the Company presently relating to the Textile Plants and all Immovable Properties, Movable Properties, Intangible Properties and General Assets acquired by the Company at any time after execution of and during the continuance of the Indenture of Mortgage. Some of facilities are additionally secured by second charge on movable Plant and Machinery of the Jeans and Shirts Garment divisions at Bangalore.

Auditors :
Name :	Sorab S. Engineer and Company Chartered Accountants
Address :	Ismail Building, 381, Dr. D. Naoroji Road, Fort, Mumbai – 400001, Maharashtra, India
Memberships :	Not Available
Collaborators :	Not Available
Subsidiary Company :	v Asman Investment Limited v The Anup Engineering Limited v Arvind Lifestyle Brands Limited v Arvind Accel Limited v Syntel Telecom Limited v Arvind Infrastructure Limited v Arvind Brands and Retail Limited v Arvind Internet Limited v Arvind Envisol Private Limited v Arvind Worldwide Inc., USA v Arvind Worldwide (M) Inc., Mauritius v Arvind Overseas (M) Limited, Mauritius v Arvind Garments Park Private Limited (Formerly known as Arvind Processing Park Private Limited) v Arvind Spinning Limited, Mauritius v Arvind Textile Mills Limited, Bangladesh v Dholka Textile Park Private Limited (Formerly known as Arvind Spinning Park Private Limited) v Arvind Hebbal Homes Private Limited v Arvind Lifestyle Apparel Manufacturing PLC, Ethiopia (from 20/03/2015)
Joint Venture :	v Arya Omnitalk Wireless Solutions Private Limited v Tommy Hilfiger Arvind Fashions Private Limited v Arya Omnitalk Radio Trunking Services Private Limited v Arudrama Developers Private Limited v Premium Garments Wholesale Trading Private Limited
Joint Venture Subsidiary Company :	v Arvind PD Composites Private Limited v Arvind Goodhill Suit Manufacturing Private Limited v Arvind Niloy Exports Private Limited, Bangladesh v Arvind OG Nonwovens Private Limited
Limited Liability Partnership :	v Arvind Bsafal Homes LLP v Ahmedabad East Infrastructure LLP v Arvind Infracon LLP v Arvind Five Homes LLP v Arvind Altura LLP v Arvind Industrial Infrastructure (One) LLP v Arvind Alcove LLP v Arvind and Smart Value Homes LLP v Changodar Industrial Infrastructure (One) LLP
Company under the control of Key Managerial Personnel :	v Aura Securities Private Limited v Amplus Capital Advisors Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2015

Authorised Capital :

No. of Shares	Type	Value	Amount
565,000,000	Equity Shares	Rs. 10/- each	Rs. 5650.000 Million
10,000,000	Preference Shares	Rs. 100/- each	Rs. 1000.000 Million
	Total		Rs. 6650.000 Million

Issued Capital :

No. of Shares	Type	Value	Amount
258,243,969	Equity Shares	Rs. 10/- each	Rs. 2582.400 Million

Subscribed and fully paid up Equity Shares :

No. of Shares	Type	Value	Amount
258,243,069	Equity Shares	Rs. 10/- each	Rs 2582.400 Million
	Forfeited Shares 900 Shares [Rs. 0.005 Million]
	Total		Rs. 2582.400 Million

Reconciliation of Number of Equity Shares

Particulars	As At March 31, 2015
Balance at the beginning of the year	258,176,389	2581.700
Add :
Shares alloted persuant to exercise of Employee Stock Option Plan	66,680	0.700
Balance at the end of the year	258,243,069	2582.400

Rights, Preferences and Restrictions attached to Shares

Equity Shares:

The Company has one class of shares referred to as equity shares having a par value of Rs. 10 each. Each shareholder is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

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

Particulars	As at March 31, 2015
Aura Securities Private Limited	95,325,590	36.91%
Life Insurance Corporation of India	15,591,817	6.04%

Shares allotted as fully paid up pursuant to contract without payment being received in cash (during 5 years immediately preceding March 31, 2015)

3,410,528 Equity Shares of Rs. 10 each were issued during the year 2012-2013 to the erstwhile shareholders of Arvind Products Limited pursuant to the Scheme of Amalgamation without payment being received in cash.

Proposed Dividend

The final dividend proposed for the year is as follows:

Particulars	As at March 31, 2015
On Equity Shares of ` 10/- each
Dividend per Equity Share (` )	2.55
Percentage of Dividend Proposed	25.50%

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	2582.400	2581.700	2580.400
(b) Reserves & Surplus	25870.400	23779.800	20414.700
(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)	28452.800	26361.500	22995.100
(3) Non-Current Liabilities
(a) long-term borrowings	11713.200	11544.600	9471.000
(b) Deferred tax liabilities (Net)	966.400	600.200	128.200
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	143.600	185.900	119.800
Total Non-current Liabilities (3)	12823.200	12330.700	9719.000
(4) Current Liabilities
(a) Short term borrowings	13315.700	10947.200	10155.400
(b) Trade payables	7217.200	7151.900	6644.800
(c) Other current liabilities	3788.200	2783.700	2453.300
(d) Short-term provisions	927.100	760.100	869.600
Total Current Liabilities (4)	25248.200	21642.900	20123.100
TOTAL	66524.200	60335.100	52837.200
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	26108.300	24906.200	23340.100
(ii) Intangible Assets	94.400	55.800	56.500
(iii) Capital work-in-progress	755.300	723.200	2003.200
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	8853.900	7003.300	4928.600
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	4078.400	3506.300	2359.300
(e) Other Non-current assets	51.500	0.100	5.400
Total Non-Current Assets	39941.800	36194.900	32693.100
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	10405.400	9426.100	8779.600
(c) Trade receivables	4622.700	5189.300	4424.200
(d) Cash and cash equivalents	450.200	1238.200	1506.000
(e) Short-term loans and advances	8008.800	5030.400	2502.400
(f) Other current assets	3095.300	3256.200	2931.900
Total Current Assets	26582.400	24140.200	20144.100
TOTAL	66524.200	60335.100	52837.200

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Revenue from Operations	52246.900	47754.800	37802.900
		Other Income	1282.500	844.400	934.600
		TOTAL (A)	53529.400	48599.200	38737.500
Less	EXPENSES
		Cost of Materials Consumed	21740.400	20965.000	16412.200
		Purchases of Stock-in-Trade	984.000	779.200	844.400
		Project Expenses	84.300	145.700	280.700
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(936.700)	(663.000)	(1660.100)
		Employees benefits expense	5710.700	5088.400	4422.200
		Other expenses	16392.300	13677.800	11636.600
		Exceptional Items	319.300	164.000	0.000
		TOTAL (B)	44294.300	40157.100	31936.000
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		9235.100	8442.100	6801.500
Less	FINANCIAL EXPENSES (D)		3200.600	2781.100	2684.400
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6034.500	5661.000	4117.100
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1258.300	1575.100	1504.900
	PROFIT BEFORE TAX (E-F) (G)		4776.200	4085.900	2612.200
Less	TAX (H)		1001.900	472.000	0.000
	PROFIT AFTER TAX (G-H) (I)		3774.300	3613.900	2612.200
	EARNINGS IN FOREIGN CURRENCY
		Export of goods calculated on F.O.B. basis	19786.600	18622.900	14449.400
		Non-Compete Fees	NA	54.200	0.000
		Better Cotton Grant	NA	22.800	25.200
		Agriculture Income	4.400	NA	NA
	TOTAL EARNINGS		19791.000	18699.900	14474.600
	IMPORTS
		Capital Goods	1393.200	490.600	929.100
		Raw Materials and Accessories	3802.000	2451.000	2870.500
		Dyes and Chemicals, Stores and Spares	1021.800	816.800	738.700
	TOTAL IMPORTS		6217.000	3758.400	4538.300
	Earnings Per Share (Rs.)
	Basic		14.62	14.00	10.12
	Diluted		14.61	14.00	10.12

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	2472.700	1675.500	1564.800
Cash generated from operations	6892.300	4960.400	4809.700

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	7.22	7.57	6.91
Operating Profit Margin (PBIDT/Sales)	(%)	17.68	18.06	17.99
Return on Total Assets (PBT/Total Assets}	(%)	8.39	7.77	5.69
Return on Investment (ROI) (PBT/Networth)		0.17	0.15	0.11
Debt Equity Ratio (Total Debt /Networth)		0.97	0.92	0.92
Current Ratio (Current Asset/Current Liability)		1.05	1.12	1.00

STOCK PRICES

Face Value	Rs.10.00
Market Value	Rs.278.10

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	2580.400	2581.700	2582.400
Reserves & Surplus	20414.700	23779.800	25870.400
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	22995.100	26361.500	28452.800
long-term borrowings	9471.000	11544.600	11713.200
Short term borrowings	10155.400	10947.200	13315.700
current maturities of long-term debts	1564.800	1675.500	2472.700
Total borrowings	21191.200	24167.300	27501.600
Debt/Equity ratio	0.922	0.917	0.967

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	37802.900	47754.800	52246.900
		26.326	9.407

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	37802.900	47754.800	52246.900
Profit	2612.200	3613.900	3774.300
	6.91%	7.57%	7.22%

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

LITIGATION DETAILS

HIGH COURT OF GUJARAT

TAX APPEAL No. 4 of 2015

Status: PENDING ( Converted from : O/ST/3204/2014) CCIN No: 001092201500004

Last Listing Date: 07/01/2015

Coram: - HONOURABLE THE ACTING CHIEF JUSTICE MR. VIJAY MANOHAR SAHAI

HONOURABLE MR.JUSTICE R.P.DHOLARIA

S.NO.

Name of the Petitioner

Advocate On Record

1

COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX

MR RJ OZA for: Appellant(s)  1

S.NO.

Name of the Respondant

Advocate On Record

1

ARVIND LIMITED

MR DHAVAL SHAH for :Opponent(s)  1

Presented On	: 04/12/2014	Registered On	: 05/01/2015
Bench Category	: -	District	: AHMEDABAD
Case Originated From	: THROUGH HIS/ HER/ THEIR ADVOCATE	Listed	: 2 times
Stage Name	: FOR FINAL DISPOSAL
Classification	DB - OJ - TAX APPEAL - CENTRAL EXCISE ACT, 1944 - UNDER SECTION 35G
Act	CENTRAL EXCISE RULES, 1944

Other Forums

S.No.	CASEDETAILS	TRIBUNAL REFERRENCE	ORDER PASSED BY	JUDGEMENT DATE	PLACE
1	A/10972-10973/2014	CESTA WEST ZONAL BENCH AHMEDABAD	JUDICIAL MEMBER	13/05/2014	AHMEDABAD

Office Details

S. No

Filing Date

Document Name

Advocate Name

Court Fee on Document

Document Details

1

04/12/2014

APPEARANCE NOTE

MR RJ OZA ADVOCATE
for PETITIONER(s)  1

0

MR RJ OZA(520) for P:1

2

04/12/2014

MEMO OF PETITION/APPEAL/SUIT

MR RJ OZA ADVOCATE
for PETITIONER(s)  1

50

MR RJ OZA(520), for P:1

3

30/12/2014

ADDITIONAL FEE ON CERTIFIEDCOPY

MR RJ OZA ADVOCATE
for PETITIONER(s)  1

2

MR RJ OZA(520) for P:1

4

08/06/2015

VAKALATNAMA

MR DHAVAL SHAH ADVOCATE
for RESPONDENT(s)  1

5

MR DHAVAL SHAH(2354) for R:1

COMPANY BACKGROUND

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

OPERATIONS

The macroeconomic scenario during the was characterized by world economy continuing its recovery from the recession in the last decade, the global growth of 3.4% showed a continued path to improvement taking into account growth of 3.4% in 2013. India’s economy also showed a continued cyclical upswing, in FY 2014-15, India’s GDP grew by 7.2%, as compared to 6.9% in FY14. While these higher numbers partially reflect the change in base year used for calculation of GDP, the overall growth demonstrates a strong recovery. Due to record-low oil prices and focus on fiscal policy by the new Government at the centre, inflation has eased. It has also allowed easing of interest rates. However the consumer spending is yet to pick-up in tandem with growth in GDP. In the backdrop of above macro-economic scenario, the Company has closed the financial year 2014-15 with 10% growth in Revenue and 10% growth in Operating Earnings before Interest, Depreciation and Taxes (EBITDA). Profit Before Tax (excluding Exceptional Items) has shown a growth of 19% compared to FY14. The Revenue growth is led by 33% growth in Knits fabrics, followed by 10% growth in Voiles fabrics, 8% growth in Woven fabrics, 6% growth in Garments and 2% growth in Denim fabrics.

MANAGEMENT DISCUSSION AND ANALYSIS

OVERVIEW OF THE ECONOMY

In 2014, world economy continued its recovery from the recession in the last decade; the global growth of 3.4% showed a continued path to improvement taking into account growth of 3.4% in 2013. India’s economy also showed a continued cyclical upswing; in FY 2014-15, India’s GDP grew by 7.2%, as compared to 6.9% in FY14. While these higher numbers partially reflect the change in base year used for calculation of GDP, the overall growth demonstrates a strong recovery. Due to record-low oil prices and focus on fiscal policy by the new Government at the centre, inflation has eased. It has also allowed easing of interest rates. Strong investor sentiment and record FII inflows have helped stabilize the currency. However, deadlock in the parliament on key reforms and the prospect of taxation under MAT has led to short-term jitters in the market. Lack of pickup in credit growth due to high banking NPAs is a worrying sign. While the markets have reached record levels, showing great optimism, it remains to be seen whether it will be seen in the performance of industry sector.

Looking ahead, the outlook for FY 2015-16 appears optimistic. Policy initiatives, pick-up in investments and continued low oil prices are likely to continue the momentum. While a lot will depend on the ability of the Government to drive 2nd generation reforms and remove structural bottle-necks, the intent and continued support to industrial growth in the country is unquestioned.

In FY 2014-15, India is likely to accelerate GDP growth rate to 7%-7.5%. The increase in growth rate is expected to be contributed majorly by the industrial sector. Unclogging of domestic policy logjam as well as improvement in private consumption demand is likely to drive the growth. Though addressing supply-side constraints (e.g. in mining, power, and steel sectors) will be the key to continue this momentum and achieve the increase in growth rate.

The prospects of long-term growth in India remain strong. India brings to the table a rare set of strengths: A long standing tradition of stable democratic governments, capable private sector, huge consumer base and restless entrepreneurs. Given India’s demographic transition, the country will still be a relatively young nation 20 years from now. This is likely to generate significant volumes of savings and investment over the coming years. All of the above will create a huge market opportunity for companies who are willing to take long-term bets on the Indian consumer.

OUTLOOK

The Company’s future growth is built on two parallel growth drivers, domestic consumption in apparel and branded retail as well as large global opportunity in textiles and clothing world trade. The company is expected to grow around 20%-22% at consolidated level in next 4-5 years. However, the growth shall be driven by its B2C business model. It is expected that B2C business shall constitute about 35% of revenue & about 30% of EBIDTA at the consolidated level.

In Brands and Retail space, the company has built a breakthrough growth portfolio of Power Brands and Specialty Retail. With such a strong portfolio of brands and retail format, the company is well poised to achieve CAGR of over 25% in next 4-5 years. To achieve this goal, the company is making category extension of its existing brands and rapid expansion of its distribution footprint. In next 4-5 years, the company is planning to cover almost 300 cities with over 3 million square feet retail space.

In Textiles, the company is driving the growth through asset-light Garmenting Business as part of vertical integration strategy so as to capture entire values in textile chain. It is also expanding its Knits fabrics capacities after having expanded Woven fabric capacity in the recent times. It is expected that Textile Business shall continue to grow at 10%- 12%.

The company having made foray in Technical Textiles Business is looking at growing this business in years to come through joint venture with global companies who either bring the technology or access to international customers. The company has also chalked-out well thought-out strategy of building E-Commerce platforms. The company is looking to develop multiple ‘Differentiated Online Formats’ to play in E-Commerce space.

For the financial year 2015-16, the revenue of the company at the consolidated level is expected to grow by around 15%-17% driven by around 24%-26% growth in Brands and Retail Business and growth of 9%-11% in Textile Business. The company is expected improvement in consolidate margin as EBIDTA margin for Brands and Retail Business is expected to improve by around 150 bps.

UNSECURED LOANS

Particulars	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
LONG-TERM BORROWINGS
From Financial Institutions	25.800	25.800
SHORT TERM BORROWINGS
Under Buyer’s Credit Arrangement	1297.900	884.700
Intercorporate Deposits From Related Parties	28.000	0.100
From Others	48.800	4.300
Commercial Papers	1500.000	0.000
Total	2900.500	914.900

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE YEAR QUARTER ENDED 30^TH JUNE 2015

Sr. No	Particulars		Quarter Ended
			30.06.2015
			Unaudited
1	Income From Operations
	a. Net Sales/ Income from Operations (Net of Excise Duty)		13094.100
	b. Other Operating Income		18.300
	Total Income from Operations (Net)		13112.400
2	Expenditure
	a. Cost of material Consumed		5150.500
	b. Purchase of Stock-in trade		205.600
	c. Changes in inventory of finished Goods, work- in-progress and Stock-in-trade		(89.600)
	d. Employees Benefit Expenses		1552.300
	e. Depreciation and Amortisation Expenses		359.500
	f. Other expenses		1947.300
	g. Project Expenses		14.900
	h. Power and Fuel		1150.800
	i.Stores and Consumption		1079.000
	j. Foreign Exchange		6.000
	Total Expenses		11376.300
3	Profit from Operations before Other Income, Interest and Exceptional Items		1736.100
4	Other Income		289.800
5	Profit from ordinary activities before finance cost & exceptional items		2025.900
6	Finance Costs		848.900
7	Profit from ordinary activities after finance costs & exceptional items		1177.000
8	Exceptional items		(28.700)
9	Profit from ordinary activities before tax		1148.300
10	Tax Expense
	- Current Tax		240.000
	- Deferred Tax		40.000
	-MAT Credit Entitlement		80.000
11	Net Profit from ordinary activity after tax		788.300
12	Extraordinary Items		0.00
13	Net Profit After Tax		788.300
14	Paid-up equity share capital (face value of Rs.10 per share)		258.24
15	Reserves excluding Revaluation Reserve as per balance sheet of previous accounting Year
16	Earning Per Share (of Rs.10 each) (not annualized)
	Basic EPS		3.05
	Diluted EPS		3.05
A		PARTICULARS OF SHAREHOLDING
17		Public Shareholding
		- No. of shares	145183414
		- Percentage of shareholding	56.22%
18		Promoter & Promoter Group Shareholding
		a) Pledged/Encumbered
		- No. of shares	455000
		- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group)	0.40%
		- Percentage of shareholding (as a % of the total share capital of the company)	0.18%
		b) Non-encumbered
		- No. of shares	112604655
		- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group)	99.60%
		- Percentage of shareholding (as a % of the total share capital of the company)	43.60%

	Particulars	Quarter ended 30.06.2015
B	Investor Complaints
	Pending at the beginning of the quarter	Nil
	Received during the quarter	11
	Disposed off during the quarter	11
	Remaining unresolved at the end of the quarter	Nil

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

2. The above results were reviewed by the Audit Committee and taken on record by the Board of Directors at their meeting held on August 06, 2015.

3. Other Income for the quarter includes (a) profit/(loss) on sale of land held for sale/fixed assets Rs. 0.93 Crores (quarter ended March 31, 2015 Rs. 25.700 Million, quarter ended June 30, 2014 Rs. Nil, year ended March 31, 2015 Rs. 143.100 Million), (b) profit/(loss) on sale of investments of Rs. Nil, (quarter ended March 31, 2015 Rs. 21.800 Million, quarter ended June 30, 2014 Rs. 159.700 Million, year ended March 31, 2015 Rs.181.500 Million) and (c) Compensation income of Rs. 50.000 Million.

4. Exceptional Item for the quarter includes (a) Settlement charges of Deferred Electricity Duty Rs. Nil (year ended March 31, 2015 Rs.28.900 Million) and (b) Retrenchment Compensation paid to workers retired under Voluntary Retirement Scheme Rs. 28.700 Million (quarter ended March 31, 2015 Rs. 260.400 Million, quarter ended June 30, 2014 Rs. 1.700 Million, year ended March 31, 2015 Rs. 29.04 Crores)

5. The Scheme of Arrangement ("the Scheme") between Arvind Limited ("the Company") and its wholly owned subsidiary Arvind Infrastructure Limited ("AIL") for demerger and transfer of Real Estate Undertaking ("demerged undertaking") to AIL sanctioned by the Hon'ble High Court of Gujarat has become effective from April 01, 2015. Consequent to the Scheme, the Company has demerged the Real Estate Undertaking and hence the results for the quarter are not strictly comparable with previous corresponding periods presented.

6. The figures for the quarter ended March 31, 2015 are the balancing figures between audited figures in respect of the full financial year and the unaudited published year-to-date figures upto the third quarter ended December 31, 2014.

7. Figures of the previous quarter/year have been regrouped wherever necessary.

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10515334	15/07/2014	2,830,000,000.00	AXIS TRUSTEE SERVICES LIMITED	AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	C16686990
2	10493707	11/03/2014	500,000,000.00	CANARA BANK	PCB, 104, JYOTI COMMERCIAL COMPLEX, NR. SHYAMAL CROSS ROADS, SATELLITE, AHMEDABAD, GUJARAT - 380015,  INDIA	C04357356
3	10482339	28/02/2014	3,830,000,000.00	STATE BANK OF INDIA	MID CORPORATE GROUP, COMMERCIAL BRANCH, "PARAMSIDDHI" COMPLEX,NR.MAHAKANT BLDG., ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	B98398761
4	10472196	20/01/2014	3,900,000,000.00	AXIS TRUSTEE SERVICES LIMITED	AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	B94256500
5	10453218	06/09/2013	1,350,000,000.00	AXIS TRUSTEE SERVICES LIMITED	AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	B86723749
6	10429849	14/05/2013	750,000,000.00	AXIS TRUSTEE SERVICES LIMITED	AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	B76623339
7	10419190	22/03/2013	1,350,000,000.00	STATE BANK OF INDIA	MID CORPORATE GROUP, COMMERCIAL BRANCH, "PARAMSIDDHI" COMPLEX, NR.MAHAKANT BLDG., ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	B73026858
8	10419216	22/03/2013	1,000,000,000.00	STATE BANK OF INDIA	MID CORPORATE GROUP, COMMERCIAL BRANCH, "PARAMSID  DHI"COMPLEX, NR.MAHAKANT BLDG., ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	B73034290
9	10393746	29/11/2012	1,000,000,000.00	AXIS TRUSTEE SERVICES LIMITED	AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	B64792104
10	10388441	30/10/2012	250,000,000.00	ICICI BANK LIMITED	ZONAL HOUSE, 9TH FLOOR, JMC HOUSE, OPP. PARIMAL GARDEN, AMBAWADI, AHMEDABAD, GUJARAT - 380006, INDIA	B62762398
11	10381413	17/10/2012	800,000,000.00	AXIS TRUSTEE SERVICES LIMITED	AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	B60039781
12	10376483	17/09/2012	550,000,000.00	AXIS TRUSTEE SERVICES LIMITED	AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	B58096124
13	10377372	28/08/2012	1,000,000,000.00	STATE BANK OF INDIA	MID CORPORATE GROUP, COMMERCIAL BRANCH, "PARAMSIDDHI", NR. MAHAKANT BLDG., ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	B58435439
14	10363118	08/06/2012	535,000,000.00	STATE BANK OF INDIA	MID CORPORATE GROUP, COMMERCIAL BRANCH, 1ST FLOOR, "PARAMSIDDHI", NR. MAHAKANT BLDG., ELLSBRIDGE,  AHMEDABAD, GUJARAT - 380006, INDIA	B42681239
15	10358930	14/05/2013 *	1,000,000,000.00	AXIS TRUSTEE SERVICES LIMITED	AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI,, MUMBAI, MAHARAS  HTRA - 400025, INDIA	B76624253
16	10333350	22/03/2013 *	400,000,000.00	AXIS TRUSTEE SERVICES LIMITED	AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND,  , PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARAS  HTRA - 400025, INDIA	B72430879
17	10312288	05/10/2011	700,000,000.00	AXIS TRUSTEE SERVICES LIMITED	AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	B23289382
18	10310959	15/07/2014 *	17,316,400,000.00	AXIS TRUSTEE SERVICES LIMITED	AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	C19159359
19	10292233	31/05/2011	820,000,000.00	AXIS TRUSTEE SERVICES LIMITED	AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	B15008220
20	10292222	11/05/2011	75,000,000.00	STATE BANK OF INDIA	MID CORPORATE GROUP, COMMERCIAL BRANCH, 3RD FLOOR, "PARAMSIDDHI", NR. MAHAKANT BLDG., ELLSBRIDGE,  AHMEDABAD, GUJARAT - 380006, INDIA	B15004443
21	10292227	09/05/2011	500,000,000.00	AXIS TRUSTEE SERVICES LIMITED	AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	B15007438
22	10269521	17/02/2011	500,000,000.00	AXIS TRUSTEE SERVICES LIMITED	2ND FLOOR, E, AXIS HOUSE,BOMBAY DYEING MILLS COMP, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	B06476824
23	10268862	10/02/2011	300,000,000.00	SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA	1ST FLOOR, NAVJIVAN AMRIT JAYANTI BHAVAN, NAVJIVAN P.O., AHMEDABAD, GUJARAT - 380014, INDIA	B05657176
24	10251221	16/12/2011 *	500,000,000.00	EXPORT - IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B31737703
25	10247115	28/09/2010	750,000,000.00	AXIS TRUSTEE SERVICES LIMITED	MAKER TOWERS 'F', 13TH FLOOR, CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA	A97280226
26	10194926	28/12/2009	400,000,000.00	AXIS BANK LIMITED	CENTRAL OFFICE, MAKER TOWERS, "F" 13TH FLOOR, CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005,  INDIA	A76346972
27	10133914	10/01/2011 *	232,500,000.00	AXIS BANK LIMITED	CORPORATE OFFICE, AXIS HOUSE, 02ND FLOOR, E WING,  BOMBAY DYEING MILLS COMPOUND, P B MARG, MUMBAI, MAHARASHTRA - 400025, INDIA	B06297907
28	10126987	10/01/2011 *	400,000,000.00	AXIS BANK LIMITED	CORPORATE OFFICE, AXIS HOUSE, 02ND FLOOR, E WING,  BOMBAY DYEING MILLS COMPOUND, P B MARG, MUMBAI, MAHARASHTRA - 400025, INDIA	B06302004
29	10123879	10/01/2011 *	1,101,000,000.00	AXIS BANK LIMITED	CORPORATE OFFICE, AXIS HOUSE, 02ND FLOOR, E WING,  BOMBAY DYEING MILLS COMPOUND, P B MARG, MUMBAI, MAHARASHTRA - 400005, INDIA	B06297550
30	10119694	10/01/2011 *	500,000,000.00	AXIS BANK LIMITED	CORPORATE OFFICE, AXIS HOUSE, 02ND FLOOR, E WING,  BOMBAY DYEING MILLS COMPOUND, P B MARG, MUMBAI, MAHARASHTRA - 400025, INDIA	B06306278

* Date of charge modification

CONTINGENT LIABILITIES:

Particulars	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
(a) Bills Discounted	1983.600	1517.200
(b) Claims against the Company not acknowledged as debts	56.800	83.800
(c) Guarantees given by the Banks on behalf of the Company	839.400	654.100
(d) Guarantees given by the Company to Banks on behalf of Subsidiaries/ Joint Ventures	6319.600	5333.100
(e) Disputed Demands in respect of Excise/Custom Duty	324.700	337.100
Sales Tax	203.700	203.700
Income Tax	62.200	47.900
Service Tax	30.000	7.000
NOTE: Future cash outflows in respect of (e) above are determinable only on receipt of judgements/ decisions pending with various forums/ authorities.

FIXED ASSETS:

Tangible Assets

v Leasehold Land

v Freehold Land

v Building

v Plant and Machinery

v Furniture and Fixtures

v Office Equipments

v Leasehold Improvements

v Vehicles

Intangible Assets

v Patent and Technical Knowhow

v Computer Software

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. 65.75
UK Pound	1	Rs. 99.53
Euro	1	Rs.73.79

INFORMATION DETAILS

Information Gathered by :	PRP
Analysis Done by :	KAR
Report Prepared by :	ART

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILITY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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		68

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.