MIRA INFORM REPORT

Report Date :

01.04.2013

IDENTIFICATION DETAILS

Name :	GTN INDUSTRIES LIMITED [w.e.f. 27.12.2005]
Formerly Known As :	GTN TEXTILES LIMITED
Registered Office :	Chitkul Village, Pattancheru Mandal, Medak-502307, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	02.08.1962
Com. Reg. No.:	01-054323
Capital Investment / Paid-up Capital :	Rs.175.496 Millions
CIN No.: [Company Identification No.]	L18101AP1962PLC054323
Legal Form :	A Public Limited Liability Company. The Company's shares are listed on the Stock Exchange.
Line of Business :	Manufacturer of Cotton Yarn, Processed Yarn and Knitted Fabrics.
No. of Employees :	1650 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 1710000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a flagship company of GTN Industries Group. Subject is an established company having a moderate track record. The liquidity position of the company is weak. There appears huge loss during the current year. The external borrowings seem to be huge. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	D [Non Fund Based]
Rating Explanation	This rating are in default or are expected to be in default soon.
Date	September 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office/ Factory :	Chitkul Village, Pattancheru Mandal, Medak-502307, Andhra Pradesh, India
Tel. No.:	91-8455-226108/226109
Fax No.:	91-8455-226112
E-Mail :	sharedept@gtnindustries.com
Corporate Office :	Plot No. 29, Nagarjuna Hills, Punjagutta, Hyderabad-500082, India
Tel. No.:	91-40-23351585 (4 lines)
Fax No.:	91-40-23358387
E-Mail :	exports@gtnhyd.com hyd1_patodia@gtnindustries.com
Administrative office :	Erumathala P.O Aluva, Ernakulam – 683 105, Kerala, India
Tel. No.:	91-484-2839491
Fax No.:	91-484-2838585
E-Mail :	cg@gtntextiles.com
Website :	www.gtindustries.com
Factory:	Nagpur Unit: Khurajgaon Village, Saoner Tahsil, Nagpur – 441 112, Maharashtra, India Tel No.: 91-7113-232363/232448 Fax No.: 91-7113-232447 Doubling Unit: Chitkul Village, Medak – 502 329, Andhra Pradesh, India Shadnagar Unit: Gundallapotlappally Balanagar, Nawdal, Near Shadnagar, Mehaboobnagar – 509 202, Maharashtra, India Tel No.: 91-8542-230035/230036 Fax No.: 91-8542-230007

DIRECTORS

AS ON 31.03.2012

Name :

Mr. Mahendra Kumar Patodia

Designation :

Managing Director and Chairman

Address :

Plot No. 145, Road No. 3, Banjara Hills, Hyderabad-500034, Andhra Pradesh, India

Date of Birth/Age:

25.08.1951

Date of Appointment :

01.10.1980

Din No.:

00004752

Other Directorship :

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U51909AP1981PLC041292	GTN ENGINEERING(INDIA) LIMITED	Director	24/07/1981	24/07/1981	-	Active	NO
2	U67120WB1979PTC031876	MEGHA INVESTMENTS PVT LTD	Director	25/04/1987	25/04/1987	-	Active	NO
3	U74899DL1988PTC030572	EMKAY YARN PRIVATE LIMITED	Director	10/02/1988	10/02/1988	15/01/2009	Active	NO
4	U65999WB1990PTC048387	FORWARD FINANCE PRIVATE LIMITED	Director	14/02/1990	14/02/1990	-	Amalgamated	NO
5	U65999WB1990PTC048410	EMKAYPEE INVESTMENTS PRIVATE LIMITED	Director	16/02/1990	16/02/1990	-	Active	NO
6	U67120WB1961PTC025238	MADAN LAL BRIJ LAL PRIVATE LIMITED	Director	31/01/1995	31/01/1995	04/02/2011	Active	NO
7	U65923AP1996PTC023431	MODESTY FINANCE AND INVESTMENTS PRIVATE LIMITED	Director	30/06/1996	30/06/1996	20/11/2009	Active	NO
8	U65993AP1996PLC025483	JEL FINANCE AND INVESTMENTS LIMITED	Director	14/10/1996	14/10/1996	-	Active	NO
9	U17300AP1994PLC018701	PERFECT KNITTERS LIMITED	Director	18/05/2002	18/05/2002	-	Active	NO
10	U67190WB1990PTC048536	M B CREDIT PRIVATE LIMITED	Director	27/01/2003	27/01/2003	-	Amalgamated	NO
11	U51494AP2003PLC040460	COTSTYLE APPARELS LIMITED	Director	07/02/2003	07/02/2003	-	Active	NO
12	U17291AP2003PLC040852	MODESTY TEXTILES LIMITED	Director	21/04/2003	21/04/2003	-	Active	NO
13	U17116AP2003PLC041256	PERFECT SPINNERS LIMITED	Director	30/06/2003	30/06/2003	-	Active	NO
14	L18101AP1962PLC054323	GTN INDUSTRIES LIMITED	Managing director	01/12/2009	01/12/2004	-	Active	NO

Name :

Mrs. Anjana Patodia

Designation :

Director

Address :

Plot No. 145, Road No. 3, Banjara Hills, Hyderabad-500034, Andhra Pradesh, India

Date of Birth/Age:

24.07.1953

Date of Appointment :

17.12.2005

Din No.:

00008264

Other Directorship :

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U67120WB1979PTC031876	MEGHA INVESTMENTS PVT LTD	Director	13/02/1979	13/02/1979	-	Active	NO
2	U65999WB1990PTC048387	FORWARD FINANCE PRIVATE LIMITED	Director	14/02/1990	14/02/1990	-	Amalgamated	NO
3	U65999WB1990PTC048410	EMKAYPEE INVESTMENTS PRIVATE LIMITED	Director	16/02/1990	16/02/1990	-	Active	NO
4	U17300AP1994PLC018701	PERFECT KNITTERS LIMITED	Director	07/11/1994	07/11/1994	22/08/2009	Active	NO
5	U18101AP2000PLC034077	IMPERIAL GARMENTS LIMITED	Director	07/08/2004	07/08/2004	-	Active	NO
6	L18101AP1962PLC054323	GTN INDUSTRIES LIMITED	Director	17/12/2005	17/12/2005	-	Active	NO
7	U17116AP2003PLC041256	PERFECT SPINNERS LIMITED	Director	30/06/2006	30/06/2006	-	Active	NO

Name :

Mr. Banwari Lal Singhal

Designation :

Director

Address :

599 B, ‘O’ Block, Alipore, Kolkata-700053, West Bengal, India

Date of Birth/Age:

15.04.1947

Date of Appointment :

25.06.1987

Din No.:

00006433

Other Directorship :

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	L70200TZ1936PLC000001	PRIME URBAN DEVELOPMENT INDIA LIMITED	Director	15/05/1988	15/05/1988	Active	NO
2	U67190WB1990PTC048536	M B CREDIT PRIVATE LIMITED	Director	08/03/1990	08/03/1990	Amalgamated	NO
3	U67120WB1989PTC046638	PRITI CREDIT PRIVATE LIMITED	Director	15/07/1992	15/07/1992	Active	NO
4	U67120KL1981PLC013244	GTN ENTERPRISES LIMITED	Director	21/06/1994	21/06/1994	Active	NO
5	U67120WB1995PTC072283	BLS SECURITIES PRIVATE LIMITED	Director	22/06/1995	22/06/1995	Active	NO
6	L18101KL1991PLC006194	PATSPIN INDIA LIMITED	Director	20/06/2000	20/06/2000	Active	NO
7	U65910TZ1996PLC007068	ATL TEXTILE PROCESSORS LIMITED	Director	01/01/2005	01/01/2005	Active	NO
8	L18101KL2005PLC018062	GTN TEXTILES LIMITED	Director	08/04/2005	08/04/2005	Active	NO
9	L18101AP1962PLC054323	GTN INDUSTRIES LIMITED	Director	22/11/2006	22/11/2006	Active	NO

Name :

Mr. George Joseph Chempakathinal

Designation :

Director

Address :

301, Swathi Apartment, A No. 7-1-455/1, Ameerpet, Hyderabad-500016, Andhra Pradesh, India

Date of Birth/Age:

02.02.1950

Date of Appointment :

28.01.2010

Din No.:

00309739

Other Directorship :

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U17300AP1994PLC018701	PERFECT KNITTERS LIMITED	Director	30/10/1995	30/10/1995	Active	NO
2	U18101AP2000PLC034077	IMPERIAL GARMENTS LIMITED	Whole-time director	31/08/2009	31/08/2009	Active	NO
3	L18101AP1962PLC054323	GTN INDUSTRIES LIMITED	Additional director	28/01/2010	28/01/2010	Active	NO
4	U51909AP1981PLC041292	GTN ENGINEERING(INDIA) LIMITED	Additional director	07/12/2011	07/12/2011	Active	NO

Name :

Mr. Vikram Ravindra Mamidipudi

Designation :

Director

Address :

68, Gunrock Enclave, Secundrabad-500007, Andhra Pradesh, India

Date of Birth/Age:

18.05.1956

Date of Appointment :

17.12.2005

Din No.:

00008241

Other Directorship :

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U51398AP1987PTC007885	NORMAK FASHIONS PRIVATE LIMITED	Director	18/11/1988	18/11/1988	-	Active	NO
2	U74140AP1992PTC014155	M.ANANDAM CONSULTANCY SERVICES PRIVATE LIMITED	Director	30/04/1992	30/04/1992	-	Active	NO
3	L85110KA1992PLC013421	ASM TECHNOLOGIES LIMITED	Director	25/01/2010	30/06/1998	-	Active	NO
4	U24110AP1995PLC022303	GLOCHEM INDUSTRIES LIMITED	Director	24/03/1999	24/03/1999	-	Active	NO
5	U01119AP1992PLC014048	WINGS INFONET LIMITED	Director	11/05/2000	11/05/2000	-	Active	NO
6	U74140AP2000PTC034461	ASSOCIATED BUSINESS COUNSELLILNG SERVICES PRIVATE LIMITED	Director	10/05/2001	10/05/2001	-	Active	NO
7	U25209TN1978PTC007619	A-BOND STRANDS PRIVATE LIMITED	Director	31/07/2002	31/07/2002	-	Active	NO
8	U36911AP2003PTC040714	NORMAK INDIA PRIVATE LIMITED	Director	25/03/2003	25/03/2003	-	Active	NO
9	U72200AP2004PTC042465	PYTHIAN INDIA PRIVATE LIMITED	Alternate director	30/04/2004	30/04/2004	14/04/2007	Active	NO
10	U15549AP2004PTC043249	TAZA RICA BEVERAGES PRIVATE LIMITED	Director	14/09/2004	14/09/2004	08/09/2008	Active	NO
11	L27100AP1989PLC010122	ZENOTECH LABORATORIES LIMITED	Additional director	01/10/2009	29/11/2005	26/02/2010	Active	NO
12	L18101AP1962PLC054323	GTN INDUSTRIES LIMITED	Director	17/12/2005	17/12/2005	-	Active	NO
13	U65990MH1993PLC071003	CANARA ROBECO ASSET MANAGEMENT COMPANY LIMITED	Director	26/06/2007	18/04/2007	16/08/2007	Active	NO
14	U93000AP2008PTC057571	PACIFIC RIM ALLIANCE INDIA PRIVATE LIMITED	Director	12/02/2008	12/02/2008	09/05/2008	Active	NO
15	U74900AP2008PTC061647	ESTELLE INDIA PRIVATE LIMITED	Director	31/10/2008	31/10/2008	-	Active	NO
16	U80302AP2002NPL039397	INSTITUTE OF INSURANCE AND RISK MANAGEMENT	Director	17/07/2009	25/03/2009	-	Active	NO
17	U80101AP1995PTC022594	TRIUMPHANT INSTITUTE OF MANAGEMENT EDUCATION PRIVATE LIMITED	Director	22/07/2009	22/07/2009	-	Active	NO
18	L65191RJ1943PLC000135	THE BANK OF RAJASTHAN LIMITED	Director	14/12/2009	14/12/2009	-	Amalgamated	NO
19	U40109AP2008PLC061202	AMRELI POWER PROJECTS LIMITED	Director	29/09/2011	03/12/2010	-	Active	NO
20	U65922AP1996PLC025009	VENTURE FINANCE AND DEVELOPMENT CORPORATION LIMITED	Additional director	23/08/2012	23/08/2012	-	Active	NO

Name :

Mr. Sanjay Panicker

Designation :

Nominee Director [IDBI Bank Limited]

Address :

106, B Wing, Gemini Apartments, Lower Khar, ODI, Maland (West), Mumbai-400095, Maharashtra, India

Date of Birth/Age:

06.12.1971

Date of Appointment :

26.05.2011

Din No.:

03531776

KEY EXECUTIVES

Name :	Mr. C.R. Gang
Designation :	Chief Financial Officer
Name :	Mr. P. Prabhakara Rao
Designation :	Company Secretary
Pan No.:	ABKPP2368M

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2012

Category of Shareholder	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	3666509	20.90
Bodies Corporate	9425679	53.74
Sub Total	13092188	74.64
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	13092188	74.64
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1686	0.01
Financial Institutions / Banks	2067	0.01
Insurance Companies	87377	0.50
Any Others (Specify)	800	0.00
Foreign Bank	800	0.00
Sub Total	91930	0.52
(2) Non-Institutions
Bodies Corporate	710861	4.05
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	2596329	14.80
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	1013986	5.78
Any Others (Specify)	35084	0.20
Clearing Members	35084	0.20
Sub Total	4356260	24.84
Total Public shareholding (B)	4448190	25.36
Total (A)+(B)	17540378	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)	17540378	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cotton Yarn, Processed Yarn and Knitted Fabrics.

Products :

ITEM CODE NO. (ITC CODE)	PRODUCT DESCRIPTION
52.05	Cotton Yarn / Processed Yarn
60.01	Knitted Fabric

PRODUCTION STATUS [AS ON 31.03.2011]

PARTICULARS	UNIT	INSTALLED CAPACITY
Spindles	Nos.	85528
Doubling Spindles	Nos.	23826
Yarn Processing	MT / Day	10
Knitting	MT / Day	5.8

PRODUCTION:

PARTICULAR	UNIT	PRODUCTION
Yarn	Kgs.	90.02*
Knitted Fabric	Kgs.	0.36

NOTE: *Includes captive consumption for Knitted fabric.

GENERAL INFORMATION

No. of Employees :

1650 [Approximately]

Bankers :

· Export-Import Bank of India, Centre One Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai-400005, Maharashtra, India

· Central Bank of India, Corporate Finance Branch, Bank Street, Hyderabad-500095, Andhra Pradesh, India

· IDBI Bank Limited

· State Bank of India

· ING Vysya Bank Limited

· State Bank of Travancore

Facilities :

SECURED LOAN	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Term Loan
From Banks Term loans are secured by first charge on immovable assets, both present and future, by way of equitable mortgage and hypothecation of movable fixed assets of the Company (excluding assets purchased on exclusive charge basis and further secured by way of a second charge, on the current assets, present and future, ranking pari passu, inter-se among the term lenders. These loans are further guaranteed personally by the Managing Director and also secured by pledge of Equity Shares to the extent of 51% of Promoter’s holding. Term loans are repayable in quarterly/half yearly installments. Interest Rate for the loans taken from Banks and others is ranging between 10% to 15% and 8% to 14%, respectively.	634.988	685.361
From Others One of the Term Loans amounting to Rs. 124.000 Millions (Previous year Rs.57.000 Millions) availed from a Bank is secured on exclusive charge basis on the specific machinery financed out of the said loan. The said term loan is repayable in quarterly installments and applicable rate of Interest is 14.75%	357.902	412.992
Other loans and advances -Hire purchase loan Hire Purchase loan is secured by Hypothecation of vehicle purchased there against.	0.000	0.082
WORKING CAPITAL LOANS Working capital loans stated above and Non-fund based limits of Rs. 223.442 Millions (Previous Year Rs. 207.421 Millions) are secured by a first charge by way of hypothecation of current assets of the Company, both present and future and by way of second charge on the fixed assets, ranking pari passu, inter-se among working capital banks. These loans/Non-fund based facilities are further guaranteed by Managing Director and also secured by pledge of equity shares to the extent of 51% of promoters’ holding. Rate of interest on Packing Credit in Foreign Currency Loan and Rupee Working Capital Loan is ranging between 3% to 4% and 12% to 14%, respectively.	698.795	693.650
TOTAL	1691.685	1792.085
UNSECURED LOAN	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Sales Tax Deferment Loan (Interest free, repayable by Aug, 2023)	98.364	101.147
Public Deposits
From Directors	0.340	0.290
From Others	6.130	10.030
TOTAL	104.834	111.467

Banking Relations :	--
Auditors :
Name :	Lodha and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India
Associates/Subsidiaries :	· Perfect Knitters Limited · Imperial Garments Limited · Purav Trading Limited
Related Parties :	· Patcot Company · Perfect Cotton Co. · Standard Cotton Corporation

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions
3500000	Preferences Shares	Rs.100/- each	Rs.350.000 Millions
	TOTAL		Rs.550.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
17558778	Equity Shares	Rs.10/- each	Rs.175.588 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
17558778	Equity Shares	Rs.10/- each	Rs.175.588 Millions
18400	Less: Forfeited Shares	Rs.5/- each	Rs.0.092 Million
	TOTAL		Rs.175.496 Millions

NOTE:

The Company has only one class of shares referred to as Equity Shares having a par value of Rs.10. Each holder of Equity Shares is entitled to one vote per share. In the event of liquidation of the Company, the holder of Equity Shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential and other payables exist currently. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

a) The reconciliation of the number of shares outstanding is set out below:

PARTICULAR	AS ON 31.03.2012		AS ON 31.03.2011
	NO. OF SHARES	RS. IN MILLIONS	NO. OF SHARES	RS. IN MILLIONS
Shares at the beginning of the year	17540378	175.496	11540378	115.496
Add: Shares issued on preferential basis	--	--	6000000	60.000
Shares outstanding at the end of the year	17540378	175.496	17540378	175.496

b) The Company has been sanctioned Debt Restructuring Scheme by CDR-EG. As per the Scheme promoters have pledged 6677100 Equity Shares to lenders with Voting Rights which is equivalent to 51% of their shareholding.

c) The details of shareholders holding more than 5% shares:

NAME OF SHAREHOLDER	AS ON 31.03.2012		AS ON 31.03.2011
	NO. OF SHARES	% OF HOLDING	NO. OF SHARES	% OF HOLDING
Emkaypee Investments Private Limited	2630574	15.00	2630574	15.00
Mahendra Kumar Patodia	1986713	11.33	1986713	11.33
Mahendra Kumar Patodia (HUF)	1112104	6.34	1112104	6.34
JEL Finance and Investments Limited	4800000	27.37	4800000	27.37
GTN Engineering (India) Limited	1365585	7.79	1365585	7.79

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		175.496	175.496	115.496
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		252.184	345.141	236.145
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		427.680	520.637	351.641
LOAN FUNDS
1] Secured Loans		1691.685	1792.085	1955.524
2] Unsecured Loans		104.834	111.467	117.377
TOTAL BORROWING		1796.519	1903.552	2072.901
DEFERRED TAX LIABILITIES		106.533	166.013	85.754
TOTAL		2330.732	2590.202	2510.296
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1515.286	1533.246	1604.637
Capital work-in-progress		0.105	41.012	3.039
INVESTMENT		0.005	0.005	0.005
DEFERREX TAX ASSETS		0.000	0.000	0.000
ASSETS HELD FOR DISPOSAL		0.969	1.129	1.572
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	889.933	928.236	648.848
	Sundry Debtors	191.970	303.617	203.731
	Cash & Bank Balances	81.933	103.440	62.910
	Other Current Assets	81.718	99.746	113.294
	Loans & Advances	137.036	170.993	130.590
Total Current Assets		1382.590	1606.032	1159.373
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	338.827	333.027	213.956
	Other Current Liabilities	210.598	232.732	31.165
	Provisions	18.798	25.463	13.209
Total Current Liabilities		568.223	591.222	258.330
Net Current Assets		814.367	1014.810	901.043
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2330.732	2590.202	2510.296

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	3801.848	3991.218	2730.515
		Other Income	18.790	9.013	14.939
		TOTAL (A)	3820.638	4000.231	2745.454
Less	EXPENSES
		Cost of Materials Consumed	1901.654	1456.662
		Purchases of Stock-in-Trade	711.999	1116.529
		Employee Benefits Expense	276.450	248.751	2573.023
		Other Expenses	747.887	714.786
		Changes in Inventories of Finished Goods, Work-in-Process and Stock-in-Trade	7.524	(64.614)
		TOTAL (B)	3645.514	3472.114	2573.023
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		175.124	528.117	172.431
Less	FINANCIAL EXPENSES (D)		170.175	196.535	111.268
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.949	331.582	61.163
Less/ Add	DEPRECIATION/ AMORTISATION (F)		156.268	154.630	156.929
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(151.319)	176.952	(95.766)
Less	TAX (H)		(59.480)	81.848	(35.636)
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(91.839)	95.104	(60.130)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	2132.703	2305.411	1484.157
	TOTAL EARNINGS		2132.703	2305.411	1484.157
	IMPORTS
		Raw Materials - Cotton	752.899	280.488	260.788
		Components and spare parts	8.338	11.455	5.286
		Capital Goods	36.118	78.954	31.895
	TOTAL IMPORTS		797.355	370.897	297.969
	Earnings / (Loss) Per Share (Rs.)		(5.24)	5.63	(3.22)

QUARTERLY RESULTS

PARTICULARS	30.06.2012 1^st Quarter	30.09.2012 2^nd Quarter	31.12.2012 3^rd Quarter
Net Sales	891.100	880.900	1048.500
Total Expenditure	854.100	849.500	1016.8000
PBIDT (Excl OI)	37.000	31.400	31.700
Other Income	7.000	04.100	3.200
Operating Profit	44.000	35.500	34.900
Interest	53.000	53.300	53.100
PBDT	(09.000)	(17.800)	(18.200)
Depreciation	37.800	38.400	38.300
Profit Before Tax	(46.800)	(56.200)	(56.500)
Tax	(07.900)	0.000	0.000
Profit After Tax	(38.900)	(56.200)	(56.500)
Net Profit	(38.900)	(56.200)	(56.500)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(2.40)	2.37	(2.19)
Net Profit Margin (PBT/Sales)	(%)	(3.98)	4.43	(3.51)
Return on Total Assets (PBT/Total Assets}	(%)	(5.22)	5.64	(3.46)
Return on Investment (ROI) (PBT/Networth)		(0.35)	0.34	(0.27)
Debt Equity Ratio (Total Liability/Networth)		5.53	4.79	6.63
Current Ratio (Current Asset/Current Liability)		2.43	2.72	4.49

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	No
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

FINANCIAL RESULTS:

Sales include Traded goods of Rs.810.300 Millions (Previous year Rs. 1257.700 Millions) Cost of Material includes Trading purchases of Rs.712.000 Millions (Previous year Rs.1116.500 Millions)

PERFORMANCE REVIEW:

During the Financial Year, the Company has achieved turnover at Rs.3801.800 Millions against Rs.3991.200 Millions in the corresponding previous year. The operating and cash profit were lower by Rs.347.900 Millions and Rs.326.600 Millions respectively, as compared to the corresponding previous year.

The low performance is mainly, due to significant increase in raw material cost without corresponding increase in sales realisations both in domestic as well as export market. In addition, there was an increase in other costs namely, power, personnel and forex fluctuations etc.

Currently, the cotton prices are more or less stagnant with the yarn sales realisation sliding down. The real position will be known only when new cotton crop will arrive in the market in October - November, 2012.

MANAGEMENT DISCUSSION AND ANALYSIS:

INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Textile Industry is one of the oldest Industries in the country and plays a pivotal role in the country’s economy in terms of Industrial Production, Employment and Foreign Exchange earnings. The Textile Industry has achieved a good growth in last two decades in terms of installed spindles and yarn production. India’s installed spindles were expanded to 48.25 million in March, 2012, accounting for 20 per cent of world’s spindleage. This could happen due to buoyant domestic / international demand and conducive Government Policies. Indian Textile sector contributes 4% to the country’s gross domestic product (GDP), accounting for 14% of industrial production, 11% to country’s exports and also employs about 3.5 crores workers directly. In addition, this industry provides indirect employment to large number of workforce and also helps to develop many related ancillaries which generates further employment. It is the second largest employment provider after the agricultural sector. The Indian Textile Industry faced a difficult period since 2007-08 till December, 2009 due to global recession and economic conditions leading to a sharp fall in consumer demand for textile products. In addition, unprecedented hike in minimum support price of seed cotton and massive exports of raw cotton resulted in substantial higher cotton prices in the domestic market. However, the markets were buoyant during 2010-11 on account of strong export and domestic demand arising from favourable demographic factor and rapid changes in the lifestyle of consumers. But again since June 2011, the Indian textile industry has severely affected due to increase in global cotton prices, Govt. policy to allow export of cotton, increase in other costs like power, interest etc., withdrawal of DEPB from Oct, 2011 and volatile exchange rates. It is hoped that textile industry may perform better after arrival of new cotton crop in Oct – Nov 2012 since it is expected that cotton crop is likely to be higher and prices are forecasted to be relatively lower than the current levels. In addition, the Govt. has proposed to restructure the repayment of loans, continuation of TUF Scheme till 31-03-2013. These are favourable indicators for the reasonable growth of textile industry in the country.

COTTON SCENARIO:

As per the Cotton Advisory Board, cotton crop estimates for 2011-12 is 347 lac bales (containing 170 kgs of cotton per bale) which is 11.22% higher than last year’s production of 312 lac bales. The demand/consumption was 252 lac bales which are lower as compared to 2010-11 as well as 2009-10. Due to the higher realization of cotton prices in this year, the estimated area under cultivation is 121.91 lac hectare which is higher by 9.41% of 2010-11. It has been estimated that the next year crop will be more than 350 lac bales approximately. Due to the volatile situation, the crop estimation of USDA is lower by 5% and the consumption expected to be increased by 3%. It is early to estimate the crop for domestic as well as internationally. Due to the low realization of cotton, the farmers planned to switch-over from cotton to other crops in India as well as in USA.

MARKETING:

India is a large supplier of cotton yarn in world market. Due to recession during 2009 in global markets, volume and value of export have come down significantly. However, from January, 2010 exports have improved and surpassed the Government’s target of $ 200 billion with an overall growth of 37.6% in 2010-11 exports. During 2011-12 the export demand of yarn had down trend. The Company is mainly in export of medium, fine and superfine combed yarn and it has been constantly focusing its efforts to cater to high end users. The Company has got excellent relations with all its overseas customers who have been dealing with the Company over the years, by adhering to quality standards, delivery schedules and competitive prices. Further, due to strengthening of the dollar, net realization from exports looks to be favourable. The demand in domestic market is also improving for woven and garment sector and gradually Company expect to have larger sale in domestic market.

FOREX/EXCHANGE RISK:

The exchange rate plays an important role since most of our export business is in dollar. The importing countries must be able to import yarn at a proper price as per their currencies and any major volatility in this aspect also affects business competitiveness. As on 31st March, 2011 dollar rupee exchange rate was at Rs.44.71 and exchange rate in second half of the financial year 2011-12 was volataile. At the end of March, 2012, dollar rupee exchange rate was at Rs.51.21. During 1st Quarter of 2012-13 also, dollar rupee exchange rate was significantly volatile at around Rs.54.00 to Rs.57.00. Due to high volatility there is possibility of exchange risk as it does not permit to plan properly. The Company expects to realize its exports at current rate. However, it will have impact on import of cotton.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:

The Company is mainly engaged in the business of manufacture and export of cotton yarn and accordingly the Company is having single reportable segment.

OUTLOOK:

The Company continues to be an important player in the field of cotton yarn in medium / fine count segment and specialized products like gassed, mercerized and compact yarns. There are good prospects for increasing exports of cotton yarn to Asian countries. The Company is making all efforts to explore new markets apart from existing markets. The year 2011-12 has witnessed good demand but with the pressure on price in both domestic and export market. The first quarter of the current year is showing declining demand trend, which appears to be temporary and overall outlook for the Indian spinning industry appears to be promising.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	90113801
Corporate identity number of the company	L18101AP1962PLC054323
Name of the company	GTN INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	Chitkul Village, Pattancheru Mandal, Medak-502307, Andhra Pradesh, India
Type of charge	Immovable Property
Particular of charge holder	Central Bank of India, Corporate Finance Branch, Bank Street, Hyderabad-500095, Andhra Pradesh, India Email: agmcfb3815@centralbank.co.in
Nature of description of the instrument creating or modifying the charge	No instrument was executed. A mortgage by deposit of title deeds by way of constructive delivery was created by GTN Industries Limited ("the Borrower") over its immovable properties situated at (a) Villate Chitkul ,Gundla potlapalli and Plot No. 29, Nagarjuna Hills are in the State of AP and (b) Village Khurajgaon, Nagpur Dist, in the state of MS with IDBI Bank Ltd (IDBI), IDBI acting as agent of Central Bank of India vide Entry No. 74 dt.15/05/2012.
Date of instrument Creating the charge	15.05.2012
Amount secured by the charge	Rs.1914.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per working consortium agreement of the Banks Terms of Repayment Payable on Demand being working capital finance Margin Export preshimptment Credit 7.5% Cash Credit/Book Debt 15.0% Extent and Operation of the charge First Charge on whole of the current Assets of the Company namely various stocks of Raw cotton, cotton yarn, stocks in process, semi-finished goods, stores and spares not relating to plant and machinery(consumable stores and spares) Bills of receivables and book debts export incentives receivable and all other movable(present and future). Second Charge on the entire Fixed Assets both the present and future of the Company at its various units at Medak, Shadnagar in State of AP and at Nagpur in MS
Short particulars of the property charged	The particulars of moveable assets are Deed of Hypothecation dated 20th March, 2012
Date of latest modification prior to the present modification	20.01.2009
Particulars of the present modification	The Charge created by the Borrower over its entire movable assets vide Working Capital Consortium dt.3/2/2012 in favour of CBI is additionally secured by mortgage of deposit of title deeds over the Borrower's immovable properties situated at(a) Villate Chitkul, Gundla potlapalli and Plot No.29,N.Hills are in the State of AP and (b)Village Khurajgaon, Nagpur District, in the state of MS with IDBI Bank Limited (IDBI),IDBI acting as agent of Central Bank of India

NOTE:

The registered office of the company has been shifted from Erumathala P Oalwaye, Ernakulam-683105, Kerala, India to the present address w.e.f. 03.04.2007.

CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR):

I) CONTINGENT LIABILITIES:

· Disputed Drawback and Excise Duty (excluding interest): Rs.2.204 Millions (Previous Year Rs. 2.204 Millions)

· Disputed Income Tax Matters Rs. 35.314 Millions (Previous Year Rs. 44.125 Millions)

· Others: Rs.10.532 Millions (Previous Year Rs. 8.839 Millions).

II) COMMITMENTS:

Estimated amount of contracts remaining to be executed on capital account and are not provided for: Rs. 24.151

Millions (Previous Year Rs. 52.508 Millions); net of advances of Rs. 2.147 Millions (Previous Year Rs. 18.870 Millions).

FIXED ASSETS:

· Land Freehold

· Buildings

· Plant and Machinery

· Electrical Installations

· Furniture and Office Equipments

· Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records 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.54.39
UK Pound	1	Rs.82.32
Euro	1	Rs.69.54

INFORMATION DETAILS

Report Prepared by :

SDA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.