MIRA INFORM REPORT

Report No. :	343785
Report Date :	05.10.2015

IDENTIFICATION DETAILS

Name :	HIMATSINGKA SEIDE LIMITED
Registered Office :	10/24, Kumarakrupa Road, High Grounds, Bangalore – 560001, Karnataka
Tel. No.:	91-80-22378000
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	23.01.1985
Com. Reg. No.:	08-006647
Capital Investment / Paid-up Capital :	Rs.492.286 Million
CIN No.: [Company Identification No.]	L17112KA1985PLC006647
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	BLRH01939A
PAN No.: [Permanent Account No.]	AAACH3507N
Legal Form :	A Public Limited Liability Company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing, marketing and distribution of textiles consisting of fabric and yarn.
No. of Employees :	2,885 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 20000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject was incorporated in the year 1985 engaged in manufacturing and marketing of yarn and fabric products. Its products include decorative fabrics for home furnishings mainly bed linen, bridal wear and fashion fabrics for men and women wear. For the financial year ended 2015, company possesses sound operational performance and it has maintain decent profitability margins at 11.09% during the year under a review. Rating takes into consideration company’s established track record of business operations marked by healthy financial profile along with sound debt protection metrics and moderate liquidity position of the company. However, rating strength partially offset by susceptibility of its operating profitability to economic downturns in its end user markets and to volatility in raw material prices. Trade relations are reported as fair. Payments are reported to be regular and as per commitment. 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	CRISIL
Rating	Long term rating= A-
Rating Explanation	Adequate degree of safety and low credit risk.
Date	30.03.2015

Rating Agency Name	CRISIL
Rating	Short term rating= A2+
Rating Explanation	Strong degree of safety and low credit risk.
Date	30.03.2015

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.

LOCATIONS

Registered Office / Corporate Headquarter :	10/24, Kumarakrupa Road, High Grounds, Bangalore - 560 001, Karnataka, India
Tel. No.:	91-80-22378000
Fax No.:	91-80-22378058/ 22378074
E-Mail :	For enquiries on Drapery and Upholstery fabrics: seide@himatsingka.com For enquiries on Bed Linen products: linens@himatsingka.com For enquiries on atmosphere: atmosphere@himatsingka.com For Investor related enquiries: investors@himatsingka.com
Website :	http://www.himatsingka.com
Factory 1 :	Drapery and Upholstery Unit: 23A KIADB Industrial Area, Veerapura Village, Doddaballapur Taluk PO – 561203, Bangalore District, Karnataka, India
Factory 2 :	Bed Linen Unit: Plot No.1, SEZ, Textile Specific, KIADB Industrial Area, Gorur Road Hanumanthapura P O Hassan – 573201, Karnataka, India

DIRECTORS

AS ON 31.03.2015

Name :	Mr. Dilip J. Thakkar
Designation :	Chairman
Name :	Mr. A.K. Himatsingka
Designation :	Vice Chairman
Name :	D.K. Himatsingka
Designation :	Managing Director
Name :	Dr. K.R.S. Murthy
Designation :	Director
Name :	Berjis M. Desai
Designation :	Director
Name :	Mr. Rajiv Khaitan
Designation :	Director
Name :	Mr. Aditya Himatsingka
Designation :	Executive Director
Name :	Mr. Shrikant Himatsingka
Designation :	Executive Director
Voter ID No.:	Jayshree Poddar
DIN No.:	Executive Director

KEY EXECUTIVES

Name :	Mr. Ashok Sharma
Designation :	Company Secretary
Name :	David Greenstein
Designation :	President and Chief Executive Officer - Himatsingka America Inc., U.S.A
Name :	Pradeep K.P.
Designation :	President – Finance and Group Chief Finance Officer
Name :	Vasudevan V.
Designation :	President – Manufacturing Operations (Group)
Name :	Y. R. Wilson Maria Doss
Designation :	President – Corporate HR (India)
Name :	Shanmuga Sundaram
Designation :	President - Manufacturing Operations (Hassan)
Audit Committee :	Dilip J. Thakkar – Chairman Rajiv Khaitan – Member Dr. K.R.S. Murthy – Member
Stakeholder Relationship Committee :	Rajiv Khaitan – Chairman A.K. Himatsingka – Member Dr. K.R.S. Murthy – Member
Investment Committee :	D.K. Himatsingka – Member A.K. Himatsingka – Member Rajiv Khaitan – Member
Share Transfer Committee :	A.K. Himatsingka – Member D.K. Himatsingka – Member Aditya Himatsingka – Member
Nomination and Remuneration Committee :	Rajiv Khaitan - Chairman Dr. K.R.S. Murthy - Member Dilip J Thakkar - Member
Risk Management Committee :	Dr. K.R.S. Murthy - Member Aditya Himatsingka - Member Shrikant Himatsingka - Member
QIP Committee :	Dr. K.R.S. Murthy – Member D.K. Himatsingka – Member Aditya Himatsingka – Member Shrikant Himatsingka – Member
Corporate Social Responsibility Committee :	Dr. K R S Murthy - Chairman A.K. Himatsingka - Member D.K. Himatsingka - Member Shrikant Himatsingka - Member

SHAREHOLDING PATTERN

AS ON 30.06.2015

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	37062059	37.64
Bodies Corporate	17891420	18.17
Sub Total	54953479	55.81
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	1237800	1.26
Sub Total	1237800	1.26
Total shareholding of Promoter and Promoter Group (A)	56191279	57.07
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	14635025	14.86
Financial Institutions / Banks	27888	0.03
Foreign Institutional Investors	257460	0.26
Sub Total	14920373	15.15
(2) Non-Institutions
Bodies Corporate	4667127	4.74
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	14421375	14.65
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	6649479	6.75
Any Others (Specify)	1607527	1.63
Clearing Members	484064	0.49
Trusts	12200	0.01
Others	1111263	1.13
Sub Total	27345508	27.77
Total Public shareholding (B)	42265881	42.93
Total (A)+(B)	98457160	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)	98457160	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing, marketing and distribution of textiles consisting of fabric and yarn.
Products :	Yarn Fabric
Brand Names :	--
Agencies Held :	--
Exports :	Not Available
Imports :	Not Available
Terms :	Not Available

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

2,885 (Approximately)

Bankers :

• Axis Bank Limited
• Canara Bank
• Export - Import Bank of India
• ICICI Bank Limited
• The Hongkong and Shanghai Banking Corporation Limited

Facilities :

SECURED LOANS	31.03.2015 Rs. In Million	31.03.2014 Rs. In Million
Long Term Borrowings
Term loan from financial institution	716.886	827.358
Term loan from banks	2127.266	1238.730
Short Term Borrowings
Working capital loan from banks (Working capital limits are secured against present and future stock and book debts on pari-passu basis)
ICICI Bank (Packing credit)	329.241	269.653
Canara Bank (Packing credit)	316.003	278.841
HSBC Bank (Packing credit)	418.618	710.743
ICICI Bank (Buyers credit)	150.604	235.718
Total	4058.618	3561.043

Statutory Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Anchorage II, 100/2, Richmond Road, Bangalore – 560025, Karnataka, India
Tel. No.:	91-80-66276000
Fax No.:	91-80-66276011
Collaborators :	Not Divulged
Membership :	Not Divulged
Wholly owned subsidiaries (WOS) :	Himatsingka Wovens Private Limited (HWPL) Himatsingka America, Inc. (Hima) Divatex Home Fashion, Inc. (Divatex) DWI Holdings, Inc. (DWI) Himatsingka Singapore Pte Ltd (HSPL) Giuseppe Bellora S.p.A. (GB)
Other subsidiaries (OS) :	Twill & Oxford LLC (T&O) GBT SrL
Enterprises owned or significantly influenced by KMP, directors or their relatives :	Bihar Mercantile Union Limited (BMU) Credit Himatsingka Private Limited (CHPL) Khaitan and Co LLP D.K. Himatsingka HUF Satin Reed America, Inc. (SR)

CAPITAL STRUCTURE

AS ON 31.03.2015

Authorised Capital :

No. of Shares	Type	Value	Amount
134000000	Equity Shares	Rs.5/- each	Rs.670.000 Million

Issued Capital :

No. of Shares	Type	Value	Amount
98496160	Equity Shares	Rs.5/- each	Rs.492.481 Million

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
98457160	Equity Shares	Rs.5/- each	Rs.492.286 Million

1) There is no movement in the shares outstanding from the prior year to the current year.

2) Details of the rights, preferences and restrictions attaching to each class of shares :

The Company has only one class of equity share, having a par value of `5/-. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amount. However, as on date no such preferential amount exist. The distribution will be in proportion to number of equity shares held by the shareholders.

3) Number of equity shares held by each shareholder holding more than 5% shares in the Company:

Name of Shareholder	Number of Shares	% holding
D K Himatsingka	11135424	11%
D K Himatsingka (HUF)	5432056	6%
Shrikant Himatsingka	6680964	7%
Bihar Mercantile Union Limited	5706000	6%
Rajshree Himatsingka	5457260	6%

4) There were no instances of shares issued, on which there were any calls remaining unpaid or instances of any forfeitures during the years ended March 31, 2015 and 2014.

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	492.286	492.286	492.286
(b) Reserves & Surplus	6353.636	5499.412	5025.731
(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)	6845.922	5991.698	5518.017
(3) Non-Current Liabilities
(a) long-term borrowings	2924.152	2210.618	2929.807
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	47.682	31.889	21.070
(d) long-term provisions	63.394	60.402	39.061
Total Non-current Liabilities (3)	3035.228	2302.909	2989.938
(4) Current Liabilities
(a) Short term borrowings	1214.466	1494.955	1145.317
(b) Trade payables	1083.377	1864.359	1306.996
(c) Other current liabilities	1046.411	801.652	611.742
(d) Short-term provisions	480.641	275.391	201.424
Total Current Liabilities (4)	3824.895	4436.357	3265.479
TOTAL	13706.045	12730.964	11773.434
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3390.218	3638.088	4017.579
(ii) Intangible Assets	60.572	45.330	50.356
(iii) Capital work-in-progress	331.823	80.673	60.269
(iv) Intangible assets under development	33.042	13.941	0.000
(b) Non-current Investments	3954.107	3582.583	3515.956
(c) Deferred tax assets (net)	10.297	10.297	9.879
(d) Long-term Loan and Advances	3173.333	1591.380	1306.638
(e) Other Non-current assets	0.000	154.143	97.660
Total Non-Current Assets	10953.392	9116.435	9058.337
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1499.014	1948.303	1443.791
(c) Trade receivables	609.155	1061.246	722.471
(d) Cash and cash equivalents	103.994	110.690	146.650
(e) Short-term loans and advances	198.358	219.757	288.911
(f) Other current assets	342.132	274.533	113.274
Total Current Assets	2752.653	3614.529	2715.097
TOTAL	13706.045	12730.964	11773.434

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2015	31.03.2014	31.03.2013
	SALES
		Income		9484.076	9836.870	7144.673
		Other Income		372.827	125.251	130.794
		TOTAL (A)		9856.903	9962.121	7275.467
Less	EXPENSES
		Cost of Materials Consumed		4954.763	6239.751	3930.245
		Purchase of Stock-in-trade		297.785	80.869	151.662
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade		200.402	(312.358)	(0.081)
		Employee Benefits Expenses		981.088	962.018	761.687
		Other Expenses		1524.793	1476.429	1222.114
		Exceptional Items - Gain / Loss		0.000	(4.700)	(35.594)
		TOTAL (B)		7958.831	8442.009	6030.033
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			1898.072	1520.112	1245.434
Less	FINANCIAL EXPENSES (D)			450.529	467.641	360.443
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			1447.543	1052.471	884.991
Less	DEPRECIATION/ AMORTISATION (F)			354.139	464.534	461.612
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			1093.404	587.937	423.379
Less	TAX (H)			0.000	(0.418)	0.000
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			1093.404	588.355	423.379
	EARNINGS IN FOREIGN CURRENCY
			Exports on FOB basis – net of returns (includes deemed export sales)	8862.759	9310.289	6543.806
			Interest income	119.081	90.126	48.433
	TOTAL EARNINGS			8981.840	9400.415	6592.239
	IMPORTS
			Raw materials and chemicals	2559.092	2408.040	2601.610
			Components, spares and others	44.458	33.864	22.279
			Capital Goods	239.924	22.064	2.514
	TOTAL IMPORTS			2843.474	2463.968	2626.403
	Earnings Per Share (Rs.)			11.11	5.98	4.30

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt
Term loan from financial institution	367.960	302.214	280.965
Term loan from banks	428.002	347.800	256.818
Loan from related parties	24.530	30.000	30.000
Non-Convertible Debentures	40.000	40.000	0.000
TOTAL	860.492	720.014	567.783
Cash generated from operations	2110.549	1103.374	1146.177
Net cash from operations	1985.319	1026.790	1152.385

QUARTERLY RESULTS

(Rs. In Million)

Particulars	30.06.2015 (Unaudited)
	1^st Quarter
Net sales	2519.100
Total Expenditure	1968.000
PBIDT (Excluding Other Income)	551.100
Other income	132.800
Operating Profit	683.900
Interest	683.900
Exceptional Items	NA
PBDT	535.500
Depreciation	89.900
Profit Before Tax	445.600
Tax	NA
Provisions and contingencies	NA
Profit after tax	445.600
Extraordinary Items	NA
Prior Period Expenses	NA
Other Adjustments	NA
Net Profit	445.600

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin PAT / Sales	(%)	11.53	5.98	5.93
Operating Profit Margin (PBDIT/Sales)	(%)	20.01	15.45	17.43
Return on Total Assets (PBT/Total Assets)	(%)	11.66	6.50	5.17
Return on Investment (ROI) (PBT/Networth)		0.16	0.10	0.08
Debt Equity Ratio (Total Debt /Networth)		0.73	0.74	0.84
Current Ratio (Current Asset/Current Liability)		0.72	0.81	0.83

STOCK PRICES

Face Value	Rs.5.00/-
Market Value	Rs.210.40/-

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	492.286	492.286	492.286
Reserves & Surplus	5025.731	5499.412	6353.636
Net worth	5518.017	5991.698	6845.922
long-term borrowings	2929.807	2210.618	2924.152
Short term borrowings	1145.317	1494.955	1214.466
Current Maturities of Long term debt	567.783	720.014	860.492
Total borrowings	4642.907	4425.587	4999.110
Debt/Equity ratio	0.841	0.739	0.730

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	7144.673	9836.870	9484.076
		37.681	(3.586)

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	7144.673	9836.870	9484.076
Profit	423.379	588.355	1093.404
	5.93%	5.98%	11.53%

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	No
8	Designation of contact person	No
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	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

UNSECURED LOAN:

Particulars	31.03.2015 Rs. In Million	31.03.2014 Rs. In Million
Long Term Borrowings
Non-Convertible Debentures	80.000	120.000
Loan from related parties	0.000	24.530
Total	80.000	144.530

BUSINESS OPERATIONS OVERVIEW

THE FINANCIAL HIGHLIGHTS

In the Fiscal year 2014 – 15 the group revenue marginally declined by 4.3% to Rs.19405.700 million and EBITDA grew by 8.2% to Rs.2215.300 million. The increase in EBITDA was driven mainly by optimization of costs and increase in operational efficiency across the group through various initiatives.

Prices of critical raw-material inputs like cotton and silk have softened when compared to previous year and are currently stable.

MANAGEMENT DISCUSSION AND ANALYSIS

GLOBAL ECONOMIC OVERVIEW

The World economic growth for the year 2014 showed marginal improvement and stood at 2.6% vs 2.1% clocked during 2013. While most economies have seen a shift in Gross Domestic Product (GDP) growth to a noticeably lower path compared to pre-crisis levels, there seem to be signs of improvement on the horizon. Global GDP is forecast to grow at a slightly faster, yet moderate pace of 3.1 and 3.3 per cent in 2015 and 2016, respectively.

On the global trade front, the growth of world merchandise trade moved up by 2.8 per cent as against a growth of 2.3 per cent in 2013. The prospects for global trade are expected to improve, driven by better economic conditions in Europe, further recovery in the United States and dynamic trade in East Asia.

INDIAN ECONOMIC OVERVIEW

At a time when concerns have been raised about global growth, there seems to be an optimistic undertone about the growth prospects of the Indian economy in the medium term. The country seems to be well placed to cope with external shocks, given its intrinsic strength in the manufacturing and services sectors, the policy reforms on the horizon and its strong domestic consumption.

The Indian economy finally saw a bounce back from the lows seen over the last two years. Government data shows that GDP grew by 5.5% in the first two quarters of the Financial Year 2015 (FY15) in accordance with the older format of calculating growth numbers. Growth benefitted from both a revival in sentiment and a cyclical bounce back during the year. There were encouraging signs of growth in the industrial sector as all the three major components namely the mining, manufacturing and electricity picked up pace from last year.

Growth in the current year, while not spectacular, has moved up firmly into the 5%+ handle. This improvement has come on the back of improved performance in the industrial sector, stable growth in the services sector and a surprisingly resilient agriculture sector. In addition, reasonably strong intent of ushering in reforms in the back drop of political head winds should continue to augur well for both the manufacturing and services sector in the medium term.

It is interesting to note, that the pick-up in growth is coinciding with a downward movement in inflation, given the effects of the past slowdown and sharp fall in global commodity prices are filtering through the economy. Inflation levels have continued to surprise on the downside and seem to be within the comfort zone of the Reserve Bank of India. Price levels across food, fuel and services seem to have moderated. This moderation in inflation has also had an impact on interest rates as the Reserve Bank of India (RBI) has finally started its rate cutting cycle with its first rate cut in January earlier this year. The RBI had established targets for inflation under its new policy regime and as such those targets have been met comfortably and set the stage for a further easing of policy in the coming months.

During 2014-15 the Export and Trade Deficit numbers were range bound. Total exports for 2014-15 stood at USD 310 Billion compared to USD 314 Billion in 2013-14. Trade deficit for 2014-15 stood at USD 137 Billion compared to USD 136 Billion in 2013-14.

The capital markets have continued to scale record levels as euphoria has built up on the possible trajectory of the Indian economy. The markets seem to have priced in a favourable policy environment and a consequent increase in corporate performance in the coming years.

On the domestic currency front, improving fundaments have caused the domestic currency to remain stable for most of the year, barring small episodes wherein a global risk off sentiment has led to some depreciation. The crucial point to note is that while the Rupee has depreciated against the dollar, it has in fact appreciated against most of the other major global currencies. The rupee saw a high of close to 58 to the US Dollar in May 2014 in the aftermath of the Union elections. Thereafter, it traded in a band of 61.5 to 63 to the US Dollar through the rest of Fiscal 2014-15.

GLOBAL TEXTILE INDUSTRY

The Global Textile & Apparel trade stood at USD 766 Billion and contributed to 4.2% of Global trade during 2013. Of USD 766 Billion, USD 460 Billion came from the Apparel sector and USD 306 Billion came from the Textiles sector. This is an improvement over the USD 708 Billion Global Textile and Apparel trade witnessed during 2012.

The Global Textile and Apparel trade has witnessed a Compounded Annual Growth Rate (CAGR) of 6.0% from 2005 through 2013 and is expected to grow at a rate of 6.4% CAGR for the next seven years. At this rate of growth, Global trade of Textile and Apparel products is expected to reach USD 1.18 Trillion by 2020.

Zooming into the Home textile space, the United States continues to dominate the Global Home Textiles market. With an estimated market sized pegged at USD 28 – 30 Billion, the United States constitutes an estimated 40% of the Global Home Textile market valued at USD 70 – 75 Billion.

The United States Home Textile market is an extremely mature market with the organized retail sector contributing over 99% of total throughput in that geography. The market is dominated by retailers who operate large Specialty store chains, Department store chains and Big Box discount chains.

INDIAN TEXTILE SCENARIO

India is the world’s second largest producer of textiles and garments and the textile industry has kept pace with the growth India has witnessed over the years. The industry continues to substantially contribute to the country’s GDP, employment and share of total exports.

With a contribution of close to 4% of GDP, a direct employment base of approximately 45 million people, a 13% share of India’s exports basket and a contribution of 12% to Industrial production, the Indian Textile Industry is a powerful sector and will play an important role in the economic growth of the country.

The size of India’s Textile and Apparel Industry (Domestic and Exports) is estimated at USD 99 Billion in the year 2014. This is projected to grow at a CAGR of 8.7% to USD 223 Billion by 2021. The growth will be driven by both the domestic and export segments of the industry. While exports are likely to grow from USD 40 Billion in 2014 to USD 82 Billion in 2021, the domestic market is likely to grow from USD 67 Billion to USD 141 Billion during the same period. As seen in Table 7 below, Indian textile and apparel exports have seen a steady rise over the years. Exports have clocked a CAGR of 10.6% from 2007 through 2014

With a potential to cross USD 200 Billion by the end of the 13th Five Year Plan, it is evident that the Indian Textile Industry is poised to occupy an important place in the Global textile map. This growth will be fueled by the significant strengths and advantages India enjoys particularly in Cotton based textile products among other textile categories. The same will be leveraged to enhance its share of global textile trade and enable it to keep pace with the growing domestic demand.

Given the strong presence of the Himatsingka Group in the bedding segment and its large presence in the North American market, the import data of the United States pertaining to cotton based bedding products is of particular significance.

The sourcing of Cotton based bedding products for the United States market is predominantly from India, China and Pakistan, among other countries. As seen in Table 8 below, the United States has increased its sourcing of Cotton Sheets, Pillow Cases, Bed Spreads and Quilts from India over the years. While total imports from India of these products stood at USD 470 Million in 2008, the same has grown to almost USD 1 Billion in 2014. This translates to a CAGR of 12.8% over the same period. China, however, has clocked CAGR of a negative 3.9% during the same period. This demonstrates India’s manufacturing competitiveness in cotton based bedding products, which is likely to continue, given India’s vast Cotton resources and a strong manufacturing platform for the usage of this fiber.

Further, Table 9 below demonstrates the percentage share of the United States imports of Cotton Sheets, Pillow Cases, Bed Spreads and Quilts. India and China clearly dominate the market with a 70% share of Imports. India’s share of imports of the above products has grown from 17% in 2008 to 35% in 2014.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10592446	23/09/2015	1,500,000,000.00	ICICI Bank Limited	Landmarkrace Cource Circle, Alkapuri, Baroda, Gujarat - 390015, India	C64899388
2	10554449	07/05/2015 *	250,000,000.00	Export Import Bank of India	Centre One Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai, Maharashtra - 400005, India	C55068407
3	10543226	11/03/2015 *	1,329,930,000.00	Axis Bank Limited	Corporate Banking Branch, Express Building, Second Floor, No.1, Queen's Road, Bangalore, Karnataka - 560001, India	C55463269
4	10475146	30/07/2014 *	200,000,000.00	Export- Import Bank of India	Centre One Building, Floor 21, World Trade Center, Cuffe Parade, Mumbai, Maharashtra - 400005, India	C18001644
5	10410597	31/12/2014 *	164,000,000.00	The Hongkong and Shanghai Banking Corporation Limited	No 7, M G Road, Bangalore, Karnataka - 560001, India	C39323100
6	10408043	28/02/2014 *	900,000,000.00	ICICI Bank Limited	Landmarkrace Cource Circle, Alkapuri, Baroda, Gujarat - 390015, India	B97379580
7	10393501	28/01/2013 *	439,600,000.00	ICICI Bank Limited	Landmarkrace Cource Circle, Alkapuri, Baroda, Gujarat - 390015, India	B67042168
8	10233787	25/01/2011 *	206,700,000.00	Export-Import Bank of India	Centre One Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai, Maharashtra - 400005, India	B04776662
9	10137971	27/01/2009 *	600,000,000.00	Canara Bank	Prime Corporate Branch, Shankarnarayana Building, 25 M. G. Road, Bangalore, Karnataka - 560001, India	A55362958
10	10036325	31/10/2008 *	1,500,000,000.00	Canara Bank	Prime Corporate Branch, Shankarnarayana Building, 25, Mahatma Gandhi Road, Bangalore, Karnataka - 560001, India	A50198167
11	80006123	20/09/2007 *	1,500,000,000.00	Export-Import Bank of India	Centre One Building, Floor 21,, World Trade Centre Complex, Cuffe Parade, Mumbai, Maharashtra - 400005, India	A25459561
12	80006121	25/03/2015 *	2,555,000,000.00	Canara Bank	Prime Corporate Branch, No. 25, Shankaranarayana, Building, M G Road, Bangalore, Bangalore, Karnataka - 560001, India	C52902624
13	80006119	25/03/2009 *	1,230,000,000.00	The Hongkong and Shanghai Banking Corporation Limited	7 M G Road, Bangalore, Karnataka - 560001, India	A59029827

*Date of modification Charges

FIXED ASSETS:

Tangible Assets:

· Land – owned

· Land – taken on operating lease

· Buildings – owned

· Buildings – partly given on operating lease

· Plant and machinery – owned

· Furniture and fixtures – owned

· Leasehold improvements – owned

· Office equipments – owned

· Vehicles – owned

Intangible Assets:

· Software and other related costs – owned

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.65.55
UK Pound	1	Rs.99.17
Euro	1	Rs.73.08

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	NKT

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	6
--PROFITABILITY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		52

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.