MIRA INFORM REPORT

Report Date :

03.01.2013

IDENTIFICATION DETAILS

Name :	TRIDENT LIMITED (w.e.f. 18.04.2011)
Formerly Known As :	ABHISHEK INDUSTRIES LIMITED
Registered Office :	Trident Complex, Raikot Road, Raikut Road, Barnala – 148 101, Punjab
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	18.04.1990
Com. Reg. No.:	16-010307
Capital Investment / Paid-up Capital :	Rs. 3058.400 Millions
CIN No.: [Company Identification No.]	L99999PB1990PLC010307
TAN No.: [Tax Deduction & Collection Account No.]	JLDA00951G
PAN No.: [Permanent Account No.]	AABCA4139J
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Terry Towels, Cotton Yarn, Paper and Chemicals.
No. of Employees :	10000 (approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (41)

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

Maximum Credit Limit :	USD 26000000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is the Flagship Company of the ‘Trident Group’, It is a well established company having a satisfactory track record. The company has incurred some loss during the year 2012. However, trade relations are reported as decent. Business is active. Payments are reported to be slow but correct. The company can be considered normal for 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 – 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	CARE
Rating	BBB (Long term bank facilities)
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	January, 2012

Rating Agency Name	CARE
Rating	A2 (Short term rating)
Rating Explanation	Strong degree of safety and very low credit risk
Date	January, 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/Plant :	Trident Complex, Raikot Road, Raikut Road, Barnala – 148 101, Punjab, India
Tel. No.:	91-1679-244700/244701/02
Fax No.:	91-1679-244708
E-Mail :	corp@tridentindia.com pawanjain@tridentindia.com
Website :	www.tridentindia.com
Corporate Office :	E-212, Kitchlu Nagar, Ludhiana – 141001, Punjab, India
Tel. No.:	91-161-5039999/5038888 / 2304000
Fax No.:	91-161-5039900/5038800
E-Mail :	corp@tridentindia.com
Factory 1 :	Raikot Road, Sanghera, Barnala – 148 101, Punjab, India
Factory 2 :	Mansa Road, Dhaula Barnala, District Sangrur – 148 101, Punjab, India
Factory 3 :	Budhni, Post Office – Pilikara, District – Sihore – 466 445, Madhya Pradesh, India
Tel. No.:	91-7564-280844
Fax No.:	91-7564-280875
Gurgaon Office :	A-25/ 15-16, DLF, Phase 1, Gurgaon, Haryana, India
Tel. No.:	91-124-2567943-47
Fax No.:	91-124-2567948
Chandigarh Office :	SCO 20-21, Setcor-9, Madhya Marg, Chandigarh-160009, India
Mumbai Office:	6 Fort, Vijay Society (2nd Floor), 1/3 Gola Lane, Opposite Dr. D N Road, Behind Central Camera, Mumbai-400001, Maharashtra, India
US OFFICE :	295 Fifth Avenue, Room 1112, New York NY 10016 USA
Email :	corp@tridentindia.com

DIRECTORS

As on 31.03.2012

Name :	Mr. Rajinder Gupta
Designation :	Director
Date of Birth/Age :	53 Years
DIN No.:	00009037
Name :	Ms. Pallavi Shroff
Designation :	Director
Date of Birth/Age :	56 Years
Qualification :	MMS, Bachelor of Law
Experience :	30 Years
DIN No.:	00013580
Name :	Dr. M A Zahir
Designation :	Director
Date of Birth/Age :	69 Years
Qualification :	PhD
DIN No.:	00002973
Name :	Mr. Rajiv Dewan
Designation :	Director
Date of Birth/Age :	50 Years
DIN No.:	00007988
Name :	Ms. Kavita Singh
Designation :	Director
Date of Birth/Age :	34 Years
Qualification :	B.A. (Hons) and M.A. in Economics
DIN No.:	03566174
Name :	Mr. Abhishek Gupta
Designation :	Director
Date of Birth/Age :	25 Years
Qualification :	Graduate
DIN No.:	02047780
Name :	Mr. Deepak Nanda
Designation :	Director
Date of Birth/Age :	52 Years
Qualification :	B.Sc. (Hons) and M.Sc. (Hons) and has advanced training in Computer Software and Management
DIN No.:	00403335

KEY EXECUTIVES

Name :	Mr. Arun Goyal
Designation :	Chief Financial Officer
Name :	Mr. Pawan Jain
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2012

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1170014	0.38
Bodies Corporate	65642400	21.46
Any Others (Specify)	98667908	32.26
Trusts	98667908	32.26
Sub Total	165480322	54.11
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	165480322	54.11
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	258572	0.08
Financial Institutions / Banks	7715596	2.52
Sub Total	7974168	2.61
(2) Non-Institutions
Bodies Corporate	69957031	22.87
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	31586127	10.33
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	16290077	5.33
Any Others (Specify)	14549387	4.76
Trusts	14549387	4.76
Sub Total	132382622	43.29
Total Public shareholding (B)	140356790	45.89
Total (A)+(B)	305837112	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)	305837112	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Terry Towels, Cotton Yarn, Paper and Chemicals.

Products :

Item Code No.	Product description
52.05	Cotton Yarn, Terry Towels
48.02	Writing and Printing Paper
28.07	Sulphuric Acid

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Actual Production
Yarn*	MT	61212
Processed Yarn**	MT	3782
Towel***	MT	31774
Paper****	MT	136716
Sulphuric Acid*****	MT	78920
Greigh Towel******	MT	1959

* Includes 17,040 MT (Previous year 13,107 MT) for captive consumption and also excludes trial run production of 304 MT in Budni (TYB-II).

** Includes 3,321 MT (Previous year 3,566 MT) for captive consumption.

*** Includes 83 MT (Previous year 54 MT) for captive consumption.

****Includes 37 MT (Previous year 33 MT) for captive consumption

***** Includes 5,574 MT (Previous year 3,533 MT) for captive consumption.

******Includes 180 MT for captive consumption (previous year Nil)

GENERAL INFORMATION

No. of Employees :

10000 (approximately)

Bankers :

· State Bank of India

· Punjab National Bank

· Canara Bank

· State Bank of Patiala

· Corporation Bank

· Oriental Bank of Commerce

· State Bank of Travancore

· State Bank of Mysore

· Syndicate Bank

· Allahabad Bank

· Indian Bank

· Bank of India

· IDBI Bank

· Exim Bank

· Indian Overseas Bank

· State Bank of Bikaner and Jaipur

· State Bank of Hyderabad

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Term loans - From banks	12659.600	8614.300
Term loans - From financial institutions	37.500	126.700
Vehicle loans from banks	28.600	46.300
Cash credits/working capital loans from banks	7356.500	7909.200
Total	20082.200	16696.500

Note

Term loans

Term loans from banks and financial institutions are secured by way of equitable mortgage created or to be created on all the present and future immovable properties including all land, buildings, structures, all plant and machinery attached thereon of the Company and hypothecation of all the movable properties including movable machinery spares, tools and accessories, etc., present and future, subject to prior charges created and / or to be created in favour of the Company's bankers on stocks of raw materials, semi finished and finished goods, consumable stores and other movable, as may be required for working capital requirements in the ordinary course of business. The mortgages and charges referred to above rank pari-passu among the lenders

Includes Rs. 1,391.5 million (previous year Rs. 146.9 million) buyers credits loan taken by the Company for a period of up to 3 years from foreign banks against term loans sanctioned by Indian banks. As per agreed terms, these buyer credit loans would be repaid to foreign banks by Indian banks out of term loan amount sanction to the Company by these Indian banks.

Vehicles loans

Vehicle loans are secured by hypothecation of vehicles acquired against such loans

Cash credits/working capital loans

Cash credit / working capital loans are secured by hypothecation of raw materials, semi finished and finished goods, stock-in-process, consumable stores, other movable assets and book debts, present and future, of the Company. The limits are further secured by way of second pari passu charge on the immovable properties of the Company.

Banking Relations :	--
Statutory Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Internal Auditors :
Name :	KPMG Chartered Accountants
Cost Auditors :
Name :	Ramanath Iyer and Company Chartered Accountants
Tax Auditors :
Name :	S C Vasudeva and Company Chartered Accountants
Enterprises where control exists:	Madhuraj Foundation (directly or indirectly holds majority voting power)
Enterprises under the common control as the Company :	· Trident Group Limited · Trident Infotech Limited (Ceased to be related party w.e.f. 21.11.2011) · Trident Corporation Limited · Trident Capital Limited · Trident Towels Limited · Abhishek Ventures and Projects Limited · Trinetra Technologies Limited
Enterprise on which Company exercise significant influence :	· Lotus Integrated Texpark Limited · Trident Agritech Limited (Ceased to be related party w.e.f. 21.11.2011)

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
6081000000	Equity Shares	Rs.10/- each	Rs. 60810.000 Millions
3005000000	Preference Shares	Rs.10/- each	Rs. 30050.000 Millions
	Total		Rs. 90860.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
305837112	Equity Shares	Rs.10/- each	Rs. 3058.400 Millions

Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period

Particulars	Equity Share Capital 31.03.2012
	Number	Rs. in millions
Issued, Subscribed and Paid up equity shares
Shares outstanding at the beginning of the year	222,301,511	2223.000
Shares issued during the year	83,535,601	835.400
Shares outstanding at the end of the year	305,837,112	3058.400

The details of shareholder holding more than 5 percent shares:

Particulars	Equity Share Capital 31.03.2012
	No. of Shares	% held
Madhuraj Foundation	94,788,428	31.0
Trident Group Limited	50,642,400	16.6
Prudent Traders Private Limited	18,860,000	6.2

Number shares allotted as fully paid up pursuant to contract(s) without payment being received in cash

Particulars	Equity Share Capital 31.03.2012
	No. of Shares	% held
Shares allotted pursuant to the scheme of amalgamation during last 5 years	53,503,427	17.5

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		3058.400	2223.000	2221.900
2] Share Application Money		21.300	0.000	0.000
3] Reserves & Surplus		3425.800	3092.400	2806.100
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6505.500	5315.400	5028.000
LOAN FUNDS
1] Secured Loans		20082.200	16696.500	17000.100
2] Unsecured Loans		0.000	0.000	110.500
TOTAL BORROWING		20082.200	16696.500	17110.600
DEFERRED TAX LIABILITIES		759.800	913.100	683.900
TOTAL		27347.500	22925.000	22822.500
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		21479.500	15932.500	15421.100
Capital work-in-progress		63.800	630.900	1759.500
INVESTMENT		556.500	445.200	357.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5204.000	6789.300	3986.900
	Sundry Debtors	1919.000	1988.200	927.300
	Cash & Bank Balances	230.300	67.500	266.000
	Other Current Assets	11.800	114.600	0.000
	Loans & Advances	3201.100	2299.500	1906.000
Total Current Assets		10566.200	11259.100	7086.200
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1821.700	1860.900	1328.000
	Other Current Liabilities	3447.600	3041.300	357.700
	Provisions	49.200	440.500	115.600
Total Current Liabilities		5318.500	5342.700	1801.300
Net Current Assets		5247.700	5916.400	5284.900
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		27347.500	22925.000	22822.500

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	27322.800	25206.500	18033.600
		Other Income	201.600	162.400	154.500
		TOTAL (A)	27524.400	25368.900	18188.100
Less	EXPENSES
		Cost of material consumed	16254.300	14469.000	14467.200
		Purchase of stock in trade	191.400	70.700
		Employee benefits expenses	2014.900	1870.100
		Other expenses	6051.200	4996.700
		Changes in inventories of finished goods and work-in-process	(189.800)	(177.800)
		TOTAL (B)	24322.000	21228.700	14467.200
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3202.400	4140.200	3720.900
Less	FINANCIAL EXPENSES (D)		1717.800	1289.000	1046.100
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1484.600	2851.200	2674.800
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2075.300	1946.800	1744.400
	PROFIT BEFORE TAX (E-F) (G)		(590.700)	904.400	930.400
Less	TAX (H)		(153.300)	233.600	365.800
	PROFIT AFTER TAX (G-H) (I)		(437.400)	670.800	564.600
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2851.700	2180.900	1616.300
	BALANCE CARRIED TO THE B/S		2414.300	2851.700	2180.900
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	14413.800	12095.000	8394.800
	TOTAL EARNINGS		14413.800	12095.000	8394.800
	IMPORTS
		Raw Materials	528.600	420.400	449.400
		Stores & Spares	108.300	170.700	127.600
		Capital Goods	1616.400	336.600	582.600
	TOTAL IMPORTS		2253.300	927.700	1159.600
	Earnings Per Share (Rs.)
	Basic		(1.59)	3.02	2.54
	Diluted		(1.59)	3.01	2.53

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012
	1^st Quarter	2^nd Quarter
Net Sales	8067.180	8260.350
Total Expenditure	6738.530	7074.530
PBIDT (Excl OI)	1328.650	1185.820
Other Income	3.110	1.690
Operating Profit	1331.760	1187.510
Interest	676.970	617.420
Exceptional Items	0.000	90.140
PBDT	654.790	660.230
Depreciation	640.640	641.750
Profit Before Tax	14.150	18.480
Tax	4.550	4.260
Provisions and contingencies	0.000	0.000
Profit After Tax	9.600	14.220
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	9.600	14.220

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(1.59)	2.64	3.10
Net Profit Margin (PBT/Sales)	(%)	(2.16)	3.59	5.16
Return on Total Assets (PBT/Total Assets}	(%)	(1.84)	3.33	4.13
Return on Investment (ROI) (PBT/Networth)		(0.09)	0.17	0.19
Debt Equity Ratio (Total Liability/Networth)		3.90	4.15	3.76
Current Ratio (Current Asset/Current Liability)		1.99	2.11	3.93

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	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

Corporate Overview

The Company operates in diversified business segments viz. Yarn, Terry Towel, Paper and Chemicals. The Company also has captive power plant to cater to needs of its various business segments.

Amalgamation of Trident InfoTech Limited and Trident Agritech Limited with the Company

During the year, the Hon'ble Punjab and Haryana High Court at Chandigarh has approved the Scheme of Arrangement for Amalgamation of Trident InfoTech Limited and Trident Agritech Limited with the Company vide its order dated September 29, 2011. Accordingly, the Scheme has become effective on November 21, 2011 and Trident InfoTech Limited and Trident Agritech Limited have been amalgamated into the Company w.e.f. April 1, 2011, the appointed date.

Results of Operations Financial Performance and review

The net sales of the Company for the year increased to Rs. 27322.800 million as compared to Rs. 25206.500 million in the previous financial year, registering a growth of approximately 8 percent. The Operating Profit (EBIDTA) for the year has been Rs. 3202.400 million as compared to Rs. 4140.200 million in the previous financial year, declined by about 23 percent due to unfavorable fluctuations in the raw material costs. The Company has incurred a net loss of Rs. 437.400 million during the year due to volatility in foreign exchange rates, higher amount of depreciation and interest attributable to expansion projects of the Company.

Total paid up capital of the Company has increased from Rs. 2223.000 million to Rs. 3058.400 million during the year under review, due to allotment of 32,174 equity shares under ESOP, 53,503,427 equity shares pursuant to amalgamation of Trident InfoTech Limited and Trident Agritech Limited with the Company and allotment of 30,000,000 equity shares pursuant to conversion of warrants issued on preferential basis.

Exports

Export sales accounted for 53 percent of net sales. During the year, export sales increased by 19 percent from Rs. 12095.000 million in the previous year to Rs. 14413.800 million in the current year.

Expansions / Modernization

During the year, Company has completed first phase of yarn expansion project at a total Capital outlay of Rs. 11170.000 millions. The commercial production under first phase of yarn expansion project has started on 65,280 spindles at Sanghera facility in Punjab w.e.f. February 6, 2012 and on 76,176 spindles at Budni facility in Madhya Pradesh w.e.f. March 24, 2012. The Company has also completed its Open End yarn spinning expansion project by installing 1,664 rotors at its Sanghera facility in Punjab and modernization of existing yarn facilities at a capital outlay of Rs. 733.500 millions. The Commercial production on these facilities has also started w.e.f. March 24, 2012.

With these expansion, the production capacity of yarn division has increased to 365,904 spindles and 3,584 rotors.

Under second phase of the yarn expansion project, Company envisage setting up of 134,448 spindles and 2,040 rotors including other balancing equipments and the commercial production on these facilities is expected to commence by third quarter of 2013.

Recognitions and Awards

During the year, the Company has been conferred with following awards and recognitions:

- JC Penny- Innovation Award 2010 for "Air Rich" range of ultra premium towels.

- 2nd Position in CONCOR EXIM Star Award in the category of "Exporter-Northern Region" by Container Corporation of India Ltd.

- Silver trophy for "Top Exporters -Terry Towels" in the category of 'Madeups' and the Bronze trophy for "Highest Global Exports" for the year 2010-11.

- The Annual Report of the Company has been awarded the Bronze Award in Conglomerates Category at the 2011 Spotlight Awards hosted by "League of American Communications Professionals."

Management Discussion and Analysis

Trident Limited regularly reviews the business operations, performance and industry dynamism to device strategies and initiatives that would maximise returns and minimise risks. The Company’s Audit Committee and Board of Directors guide towards strengthening governance practices to protect stakeholder interests.

This report comprehensively analyses the macro business environment and its impact on the Company’s operations and financials during the period April 1, 2011 to March 31, 2012 and it should also be read in conjunction with the audited financial statements for the year ended March 31, 2012. This report contains certain forward-looking statements based on their current expectations, which entails various risks and uncertainties that could cause the actual results to differ materially from those reflected herein. All references to ‘Trident, ‘They’, ‘Their’ or ‘the Company’ in this report refer to Trident Limited.

Business operations

The Company is a diversified business conglomerate having interests in yarn, home textiles, paper, chemicals and energy. They significantly invested in modernising assets and in forward/backward integration. The Company’s manufacturing facilities are located at Barnala (Punjab) and Budni (Madhya Pradesh).

Economic overview

The global economy grew 3.9% in 2011 as the US economy strengthened in the second half of 2011. This growth was primarily led by a 7.8% growth in the developing Asian region.

Global economic growth is expected to subdue in 2012 to 3.5%, owing to recession in the Euro region.

The Indian economy grew at 6.5% in 2011-12 against 8.4% in 2010-11, primarily on account of the weakening rupee, rising interest rates, global economic slowdown that significantly impacted the country’s industrial sector, whose growth reduced to 3.6% in 2011-12 (6.8% in 2010-11), owing to lower-than expected growth in the manufacturing sector (accounting for 80% of the industrial output).

Textile division

Industry review

Global: The global textile industry witnessed a highly tumultuous scenario as cotton prices rose 133% over September 2010 to reach USD 2.3 per pound in March 2011 and then declined to USD 0.95 per pound in December 2011. The industry struggled to manage the demand, supply, cost, price and capacity. Lackluster demand in the US and Europe (the largest textile importers) due to economic turmoil further impacted exports. The global textile and clothing trade is expected to grow at a 6.6% CAGR and reach USD 1 trillion by 2020. During 2010-15, the demand for textiles and clothing in China is expected to surge to 21.3% and in India it is expected to be 13.5%.

India: The Indian textile industry, pegged at USD 55 billion, accounts for 14% of the industrial production, 12% of total exports and 4% of the country’s GDP. Almost 64% of the demand in the textile industry is domestic. Total exports between April to December 2011 grew 23.87% over the corresponding period to USD 23.78 billion. Overall textile exports in 2011-12 is expected to reach USD 30 billion. The sector attracted cumulative FDI inflows of USD 1.03 billion during January 2000 to October 2011. It is expected that India’s share in the textile and apparel world trade would increase from 4.5% currently to 8% and reach USD 80 billion by 2020. The country’s export scenario is further expected to improve as China’s dominance as a low-cost exporter is expected to be impacted given the 2-3x rise in wage prices.

Home textiles division

Industry review

The home textiles market includes carpets, rugs, bedding products, kitchen linen, bathroom furnishings, window

treatment, hammocks, table linen, curtains and upholstery fabrics. These products are in high demand in the US and Europe as a fashion accessory. In the terry towels market, India enjoys a competitive edge as it possesses the latest technology, provides wide and innovative design varieties, has production flexibility and possesses strong product development skills.

The global home textiles market, estimated to be worth USD 35 billion, is primarily dominated by the US and Europe, both accounting for over 70% of the market size. The other major markets include Japan, Australia and New Zealand. The home textiles market is estimated to grow at a 4% CAGR in the next five years. The global trade for home textiles is estimated at USD 74.75 billion, of which China contributes 31% and India a mere 4.4%.

The Indian home textiles market, pegged at Rs. 15,570 crore, is expected to grow at 9% in the coming years. Though the industry faced lackluster demand in the year due to an economic slowdown in the US and EU coupled with rising cotton prices, it is expected to revive soon with the Indian market expected to gain most given the rising costs in China.

Yarn division

Industry review

Global yarn output and fabric production fell 11.3% and 11.8% respectively in Q1 CY2011, compared with the previous quarter owing to a sharp fall in Asian, European and South American production. In Q2 CY2011, yarn and fabric production rose 12.1% and 4.4% respectively, owing to a rise in Chinese output. In Q3 CY2011, output for global yarn and fabric production increased 2.5% and 5.9% respectively, owing to increased production in the Asian region (particularly China) and South America. In Q4 CY2011, the output for global yarn and fabric production increased 6.5% and 0.7%, respectively

Paper division

Industry review

Global: The global paper industry, estimated at USD 436.46 billion, is likely to produce 400 million tonnes in 2011-12. The production of CEPI (Confederation of European Paper Industries) member countries fell 2% to around 95 million tonnes of paper and board in 2011, whereas world paper production witnessed a limited growth with production growing by mere 0.5% with average quarterly production being in the range of 23.5-24 million tonnes. Most of the major paper producing countries suffered during 2011, except South Korea and China.

India: The Indian paper industry, estimated at Rs. 30,000 crore, is likely to produce 11 million tonnes in 2011-12, accounting for only 2.75% of global production. Paper consumption in India during 2011-12 is likely to touch 12 MT. India imports nearly 1.6 million tonnes (of which one million tonnes is newsprint) of paper every year to meet the incremental demand. Per capita paper consumption in India is only about 10 kg compared with the global average of 57 kg. Almost 31% of the total paper production comes from wood and bamboo, 47% from recycled wastes and 22% from agro products. The country’s paper industry is likely to grow 7% annually to reach Rs. 60,000 crore by 2025. Its production is likely to grow from 12 MT currently to 17 MT in the next five years.

Energy division

Industry review

India’s power generating capacity as on March 31, 2012 was 199.63 GW (65.79% of which is thermal, 19.53% hydro, 2.39% nuclear and 12.27% renewable). The Power Ministry expects to add 76,000 MW of power in the Twelfth Plan (2012-17) and 93,000 MW in the Thirteenth Plan (2017-22). During the Twelfth Plan, the sector expects to attract investments worth Rs. 13 lakh crore. FDI inflows in the sector during April-February 2011-12 stood at USD 1,616 million.

CONTINGENT LIABILITIES:

(Rs. in millions)

PARTICULARS	31.03.2012
a) Claims* (excluding claims by employees where amounts are not ascertainable) not acknowledged as debt:
– Service Tax	4.100
– Excise duty	82.500
– Income Tax	11.000
– Others	0.500
b) Bills discounted	995.300
c) Guarantees given to banks on behalf of others Rs.1358.100 million (Previous year Rs.308.100 million) - loan availed	676.100

* All the above matters are subject to legal proceedings in the ordinary course of business. The legal proceedings when ultimately concluded will not, in the opinion of the management, have a material effect on the results of operations or financial position of the Company.

PRESS RELEASE

Abhishek Gupta becomes one of the youngest CEO, assumes charge of Trident Limited

Abhishek Gupta, 25, appointed as Managing Director, Trident Limited

New Delhi/Ludhiana, April 23, 2012, Trident Limited, the flagship company of USD 1 billion Trident Group, in its Board meeting, today, appointed Abhishek Gupta as its Managing Director. Trident Limited, having world class manufacturing capacities in Textile and Paper and clientele spread over 75 countries, has emerged one of the largest exporters of terry towels from India.

The Company has been recognized for adopting best corporate governance practices in addition to considerable appreciation from global brands including Wal-Mart, JC Penney, Target, IKEA, Macy's, Kohl's, Burlington etc to name a few. Trident is pioneer for investing in business excellence and associating with global technology partners like Toyota, Thies, Schmale, Savio, Karl Mayer, Allimand etc. Trident, also a leading supplier of copier paper, after establishing “Trident Spectra” in domestic and International market, recently launched “Trident Eco Green” and “Trident Natural” to expand its market share in paper industry.

Abhishek Gupta, 25, a Graduate from the University of Warwick and Schooling from the Doon, assumed the charge of Trident and has become one of the youngest Managing Directors. With average age of employees less than 29, Trident is known for providing fast track career opportunities and generates employment to more than 20,000 families.

Abhishek Gupta has been well groomed to take over the new responsibility. He led the Company’s Commercial, Supply Chain, Project and Operations team and successfully introduced efficient systems and processes.

Prior to being appointed as the Managing Director, he was heading, the Corporate Marketing and Innovation Team and provided strategic direction to the marketing heads of all business verticals of Trident. He honed his skills in Marketing from Harvard Business School and has been able to successfully put into practice his academic knowledge which has been instrumental in driving the marketing operations, generating strong revenue growth of the company. Apart from sturdy academics and leadership skills, he believes in professionalism and his ability to inspire the members with the vision and values of the organization.

About Trident Limited

Subjectis the flagship company of Trident Group a USD 1 Billion global player, with its array of customers spread across 75 countries. Subject is a leading manufacturer of Terry Towels, Paper, Yarn and Chemicals. Currently the group has a production capacity of 14.5 million pieces of towel/month, 90,000 pieces of bathrobe/month, 15,000 tonnes of Paper/month, 7,500 tonnes of cotton and blended yarns/month and 60 MW captive power generation.

The company has emerged as one of the largest manufacturers of Terry Towels and wheat straw based paper manufacturers in the world. Trident is associated with global retail brands across the globe, including Wal-Mart, JC Penney, IKEA, Target, Macy's, Kohl's, Sears, Sam's Club, Burlington etc and has received accolades from its patrons frequently in recognition for delivering high quality standards and for the customer centric approach. With a Compounded Annual Growth Rate (CAGR) of more than 30%, Trident has established itself as one of the fastest growing groups in India.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2012

PART-I

(Rs. in millions)

		Quarter Ended		Half Year Ended
		30.09.2012	30.06.2012	30.09.2012
Sr.	Particulars	3 Months	3 Months	6 Months
No.		Unaudited	Unaudited	Unaudited
1	Income from operations
	a) Net sales/ income from operations (Net of excise duty)	8220.440	8012.490	16232.930
	b) Other operating income	39.910	54.690	94.600
	Total income from operations (net)	8260.350	8067.180	16327.530
2	Expenses
	a) Cost of materials consumed	4834.530	4442.510	9277.040
	b) Purchases of stock-in-trade	52.960	52.830	105.790
	c) Changes in inventories of finished goods and work-in-progress	(199.140)	(148.900)	(348.040)
	d) Employee benefits expense	578.270	564.620	1142.890
	e) Depreciation and amortisation expense	641.750	640.640	1282.390
	f) Other expenses	1807.910	1827.470	3635.380
	Total expenses	7716.280	7379.170	15095.450
3	Profit from operations before other income, finance costs and exceptional items (1-2)	544.070	688.010	1232.080
4	Other income	1.690	3.110	4.800
5	Profit from ordinary activities before finance costs
	and exceptional items (3+4)	545.760	691.120	1236.880
6	Finance costs	617.420	648.270	1265.690
7	Profit/(loss) from ordinary activities after finance costs but before exceptional items (5-6)	(71.660)	42.850	(28.810)
8	Exceptional items (refer note 5)	(90.140)	28.700	(61.440)
9	Profit/(loss) from ordinary activities before tax (7-8)	18.480	14.150	32.630
10	a) Provision for taxation	6.000	4.600	10.600
	b) Provision for taxation for earlier years	(1.740)	(0.050)	(1.790)
11	Net profil/(loss) from ordinary activities after tax ( 9-10)	14.220	9.600	23.820
12	Extraordinary items (net of tax expense)	-	-	-
13	Net profil/(loss) for the period (11-12)	14.220	9.600	23.820
14	Paid-up equity share capital (Face value of Rs. 10/ each)	3058.370	3058.370	3058.370
15	Reserves (excluding revaluation reserves) as per balance sheet of previous accounting year
16	Earning/ (loss) per share (EPS) before and after extraordinary items (of Rs. 10/ each) (not annualized)
	- Basic (Rs.)	0.05	0.03	0.08
	- Diluted(Rs.)	0.05	0.03	0.08
PART-II
A	Particulars of Shareholding
1	Public shareholding	#	#	#
	- Number of shares	140,356,790	140,356,790	140,356,790
	- Percentage of shareholding	45.89	45.89	45.89
2	Promoters and Promoter Group Shareholding
	a) Pledged / Encumbered
	- Number of shares	Nil	Nil	Nil
	- Percentage of shares (as a % of the total shareholding promoter and promoter group)	Nil	Nil	Nil
	- Percentage of shares (as a % of the total share capital of the company)	Nil	Nil	Nil
	b) Non - encumbered
	- Number of shares	165,480,322	165,480,322	165,480,322
	- Percentage of shares (as a % of the total shareholding of the Promoter and Promoter group)	100	100	100
	- Percentage of shares (as a % of the total share capital of the company)	54.11	54.11	54.11

	Particulars	3 Months Ended 30.09.2012
B	Investor Complaints
	Pending at the beginning of the quarter	-
	Received during the quarter	3
	Disposed of during the quarter	3
	Remaining unresolved at the end of the quarter	^-

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. in millions)

		Quarter Ended		Half Year Ended
		30.09.2012	30.06.2012	30.09.2012
Sr.	Particulars	3 Months	3 Months	6 Months
No.		Unaudited	Unaudited	Unaudited
1	Segment Revenues
	a) Yarn	4067.720	3843.140	7910.860
	b) Terry towel	3252.180	3170.160	6422.340
	c) Paper and chemicals	1734.880	1764.580	3499.460
	d) Others	2.680	1.630	4.310
	e) Unallocated	1.840	6.970	8.810
	Total	9059.300	8786.480	17845.780
	Less: Inter segmental revenue	798.950	719.300	1518.250
	Net sales /income from operations	8260.350	8067.180	16327.530
	(Including other operating income)
2	Segment results Profil/(loss) before tax and interest from each segment
	a) Yarn	231.170	238.010	469.180
	b) Terry towel	153.930	298.250	452.180
	c) Paper and chemicals	245.850	279.400	525.250
	d) Others	(0.620)	(1.020)	(1.640)
	Total	630.330	814.640	1444.970
	Less:
	a) Interest (net of exceptional items)	527.280	676.970	1204.250
	b) Other un-allocable expenditure net off un-allocable income	84.570	123.520	208.090
	Total profil/(loss) before Tax	18.480	14.150	32.630
3	Capital employed # (Segment assets - Segment liabilities)
	a) Yarn	13394.650	15099.860	13394.650
	b) Terry towel	5969.200	6082.290	5969.200
	c) Paper and chemicals	6279.270	6471.020	6279.270
	d) Others	1017.950	1019.460	1017.950
	e) Unallocated	868.060	816.810	868.060
	Total	27529.130	29489.440	27529.130
	# Includes capital work in progress	172.150	127.370	172.150

STATEMENT OF ASSETS AND LIABILITIES

Sr. No.	Particulars	30.09.2012
		Unaudited
A	EQUITY AND LIABILITIES
1	Shareholders' funds
	a) Share capital	3058.370
	b) Reserves and surplus	3449.660
	c) Money received against share warrant	21.310
	Sub-total - Shareholders' Funds	6529.340
2	Non-current liabilities
	a) Long term borrowings	11006.680
	b) Deferred tax liabilities (net)	770.360
	c) Other long term liabilities	-
	d) Long term provisions	30.060
	Sub-total - Non-Current Liabilities	11807.100
3	Current liabilities
	a) Short term borrowings	6724.700
	b) Trade payables	1745.390
	c) Other current liabilities (Current maturities of long term debts Rs.3268.400 millions previous year Rs.2754.300 millions)	3938.430
	d) Short term provisions	17.290
	Sub-total - Current Liabilities	12425.810
	TOTAL - EQUITY AND LIABILITIES	30762.250
B	ASSETS
	Non-current assets
	a) Fixed assets	20844.640
	b) Non-current Investments	614.690
	c) Long term loans and advances	1076.650
	d) Other non-current assets	-
	Sub-total - Non-Current Assets	22535.980
	Current assets
	a) Current investments	-
	b) Inventories	3968.650
	c) Trade receivables	1854.560
	d) Cash and cash equivalents	332.700
	e) Short-term loans and advances	2054.010
	f) Other current assets	16.350
	Sub-total - Current Assets	8226.270
	TOTAL - ASSETS	30762.250

Notes:

1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors in its meeting held on November 12, 2012. The Limited Review as required under Clause 41 of the Listing Agreement has been completed by the Statutory Auditors.

2. The Company has made allotment of 50,00,000 equity shares of the face value of Rs. 10.00 each at a price of Rs. 17.05 per share on October 25, 2012 pursuant to exercise of conversion option by the holders of convertible warrants issued on preferential basis on April 27, 2011. Consequent to this allotment, the paid up share capital of the company has increased to Rs. 3108.370 millions

3. A major part of revenue of the Company comes from export sales and as such company has foreign currency fluctuation exposure. The Company has not accounted for “Mark to Market” loss on open put derivative options in view of the significant currency fluctuations associated with the exchange rates. In view of the significant fluctuations associated with these contracts, the “Mark to Market” loss of Rs. 38.100 millions on derivative options as on September 30, 2012 will be provided on settlement basis.

4. The Company has given capital advances aggregating Rs. 144.100 millions to certain parties in earlier years for projects, whose implementation has been postponed for the time being by the Company. Such advances are good and fully recoverable and would be settled as and when these projects are recommenced and the concerned parties would supply assets in due course.

5. Till June 2012, as per AS 16 on “Borrowing Costs” and notification no G.S.R. 225 (E) dated March 31, 2009, the Company had adopted the option of capitalizing exchange differences on the long term foreign currency borrowings for depreciable fixed assets above the local benchmark rate of interest whereas rest of the exchange differences were expensed as “Finance Costs” for all non-qualifying assets and for qualifying assets post commissioning. The Ministry of Corporate Affairs issued a circular no.25/2012 dated August 9, 2012 clarifying that all such exchange differences should be capitalized and no interest as per AS 16 should be charged to the Statement of Profit and Loss. Accordingly, the exchange differences of Rs 90.140 millions (Rs 61.440 millions and Rs 28.700 millions for the previous year ended March 31, 2012 and the quarter ended June 30, 2012 respectively) expensed off in the earlier periods have been reversed and capitalized with the cost of the fixed assets. The total one off favourable impact during the quarter ended September 30, 2012 is Rs 60.890 millions (net of tax of Rs 29.250 millions).

6. Provision for taxation is deferred tax charge of Rs. 6.000 millions during the quarter ended September 30, 2012.

FIXED ASSETS

Tangible Assets

· Land

· Buildings

· Plant and machinery

· Furniture and fixtures

· Office equipments

· Computers

· Vehicles

Intangible Assets

· Software

CMT REPORT (Corruption, Money Laundering and 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.54.39
UK Pound	1	Rs.88.76
Euro	1	Rs.72.19

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE and RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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
TOTAL		41

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 and 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.