MIRA INFORM REPORT

Report Date :

04.01.2013

IDENTIFICATION DETAILS

Name :	NITIN SPINNERS LIMITED
Registered Office :	16-17 K.M. Stone, Chittor Road, Hamirgarh, Bhilwara - 311001, Rajasthan
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	15.10.1992
Com. Reg. No.:	17-006987
Capital Investment / Paid-up Capital :	Rs. 458.339 Millions
CIN No.: [Company Identification No.]	L17111RJ1992PLC006987
TAN No.: [Tax Deduction & Collection Account No.]	JDHN01149B
PAN No.: [Permanent Account No.]	AAACN7529A
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing of Cotton Yarn and Knitted Fabric.
No. of Employees :	1417 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 3470000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Even though the subject has achieved some growth in its revenue from operations during 2012, there appears huge dip in the profitability of the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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	Long term Bank facilities : BB+
Rating Explanation	Moderate risk of default.
Date	July 2012

Rating Agency Name	CARE
Rating	Short term Bank facilities : A4+
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	July 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 :	16-17 K.M. Stone, Chittor Road, Hamirgarh, Bhilwara - 311001, Rajasthan, India
Tel. No.:	91- 1482-286110-113
Fax No.:	91-1482-286114/ 286117
E-Mail :	sudhirgarg@nitinspinners.com nsl@nitinspinners.com
Website :	http://www.nitinspinners.com

DIRECTORS

AS ON 31.03.2012

Name :	Mr. R. L. Nolkha
Designation :	Chairman and Managing Director
Name :	Mr. Dinesh Nolkha
Designation :	Managing Director
Name :	Mr. Bhagwan Ram
Designation :	Director
Name :	Mr. Y. R. Shah
Designation :	Director
Name :	Mr. Nitin Nolkha
Designation :	Executive Director
Name :	Dr. S. S. Banerjee
Designation :	Nominee Director

KEY EXECUTIVES

Name :	Mr. Sudhir Garg
Designation :	Company Secretary and General Manager (Legal)
Name :	Mr. P. Maheshwari
Designation :	Vice President (Finance)
Name :	Mr. Sandeep Kumar
Designation :	Vice President (Technical)
Name :	Mr. K. L. Pareek
Designation :	General Manager (P&A)
Name :	Mr. Ratnesh Kumar
Designation :	General Manager (Rotor Spinning)
Name :	Mr. Tarun Sahu
Designation :	General Manager (Engineering)
Name :	Mr. Umesh Toshniwal
Designation :	General Manager (Marketing)
Name :	Mr. S. S. Ranka
Designation :	General Manager (TPP)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2012

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	11690284	25.51
Bodies Corporate	16600961	36.22
Sub Total	28291245	61.73
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	28291245	61.73
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	100000	0.22
Insurance Companies	393029	0.86
Sub Total	493029	1.08
(2) Non-Institutions
Bodies Corporate	1961997	4.28
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	9857191	21.51
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	4960652	10.82
Any Others (Specify)	269831	0.59
Clearing Members	44000	0.10
Non Resident Indians	224331	0.49
Trusts	1500	0.00
Sub Total	17049671	37.20
Total Public shareholding (B)	17542700	38.27
Total (A)+(B)	45833945	100.00
© 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)	45833945	0.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Cotton Yarn and Knitted Fabric.

PRODUCTION STATUS (AS ON 31.03.2012)

Particulars	Unit	Installed Capacity
Rotors	Nos.	2936
Spindles	Nos.	77616
Knitted Fabric	No. of M/c’s	31

Particulars	Unit	Actual Production
Yarn
Own Manufacturing	Qty. (In Tons) *	20840.509
Trading	Qty. (In Tons)	370.996
Fabric	Qty. (In Tons) **	1769.344
Job Work for Other
Fabric	Qty. (In Tons)	425.145

Note:

* Production includes 1750.124 Tons. (Previous Year 2749.106 Tons) transferred for captive consumption

** Fabric Production includes Nil Tons manufacture from outside. (Previous Year 234.823 Tons)

GENERAL INFORMATION

No. of Employees :

1417 (Approximately)

Bankers :

v Oriental Bank of Commerce

v Punjab National Bank, Main Branch, Bhopal Ganj, Bhilwara – 311001, Rajasthan, India

v Indian Overseas Bank

v State Bank of India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term Loan from Banks	1834.757	2085.346
Vehicle Loan From Bank	2.073	0.000
Working Capital Loan from Banks	400.932	538.218
Total	2237.762	2623.564
Note: 1. Term Loans of Rs.1744.836 Millions crores are secured by way of first charge on all immovable and movable fixed assets (both present and future) and second charge on current assets. The term loan of Rs. 340.500 Millions are secured by way of IIIrd charge on all immovable and movable fixed assets and current assets of the company. The term loans are also secured by personal guarantee of three directors 2. Vehicle Loan is secured by hypothecation of the specific vehicle 3. Terms of Repayment a) Term loans of Rs. 170.580 Millions are Repayable in 8 variable quarterly Instalments upto 31st March 2014 (Applicable rate of interest 11% p.a.) b) Term loans of Rs. 134.516 Millions are Repayable in 17 variable quarterly Instalments upto 30th June 2016 (Applicable rate of interest 11% p.a.) c) Term loans of Rs. 1439.740 Millions are Repayable in 27 variable quarterly Instalments upto 31st December 2018 (Applicable rate of interest 11% p.a.) d) Term loans of Rs. 340.500 Millions are Repayable in 27 variable quarterly Instalments upto 31st December 2018 (Applicable rate of interest 8.36% p.a.) e) Vehicle loans of Rs. 2.600 Millions is Repayable in 50 variable monthly Instalments upto 7th May 2016 (Applicable rate of interest 10.40% p.a.)
Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Security Deposits	0.306	0.866
Total	0.306	0.866

Note:

The working capital loans are secured by way of hypothecation (both present and future ) of stocks of raw material / component spares, stock in process, finished goods and book debts and a second charge on all immovable properties (both present and future) of the company. The working capital loans are also secured by personal guarantee of three directors.

Banking Relations :	--
Auditors :
Name :	R. S. Dani and Company Chartered Accountants
Address :	Bhilwara, Rajasthan, India
Associates :	Redial Trading and Investment Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
4,60,00,000	Equity Shares	Rs. 10/- each	Rs. 460.000 Millions
4,00,000	Preference Shares	Rs. 100/- each	Rs. 40.000 Millions
	Total		Rs. 500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4,58,33,945	Equity Shares	Rs.10/- each	Rs. 458.339 Millions

a. Details of Shareholders holding more than 5% Shares are as under:

Particulars	No. of Shares	% of Holding
Redial Trading and Investment Private Limited	6609310	14.42
Prasham Corporate services (India) Private Limited	6197527	13.52
Ratan Lal Nolkha	5367405	11.71

b. The company has not issued, any shares pursuant to contract without payment being received in cash, bonus Share and has not bought back any shares

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		458.339	458.339	458.339
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		408.257	405.227	337.849
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		866.596	863.566	796.188
LOAN FUNDS
1] Secured Loans		2237.762	2623.564	3085.072
2] Unsecured Loans		0.306	0.866	0.000
TOTAL BORROWING		2238.068	2624.430	3085.072
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		3104.664	3487.996	3881.260
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2280.889	2492.805	2950.772
Capital work-in-progress		33.803	0.000	0.000
INVESTMENT		0.000	0.003	0.006
DEFERREX TAX ASSETS		2.422	2.397	31.722
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	771.240	818.381	760.286
	Sundry Debtors	185.015	353.383	94.025
	Cash & Bank Balances	0.847	1.418	0.993
	Other Current Assets	133.639	103.892	0.000
	Loans & Advances	65.128	38.371	125.151
Total Current Assets		1155.869	1315.445	980.455
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	40.608	33.817	42.181
	Other Current Liabilities	309.048	274.726	28.751
	Provisions	18.663	14.111	10.763
Total Current Liabilities		368.319	322.654	81.695
Net Current Assets		787.550	992.791	898.760
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3104.664	3487.996	3881.260

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	4283.003	4109.084	3019.549
		Other Income	1.267	2.353	4.247
		TOTAL	4284.270	4111.437	3023.796
Less	EXPENSES
		Cost of Materials Consumed	2800.369	2609.360	1927.001
		Purchase of Traded Goods	62.674	0.000	0.000
		Changes in Inventories of Finished Goods, Work-in-progress and Stock-in-Trade	104.282	(87.882)	10.990
		Employee Benefits Expenses	164.949	147.504	130.059
		Other Expenses	700.280	681.998	609.169
		TOTAL	3832.554	3350.980	2677.219
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		451.716	760.457	346.577
Less	FINANCIAL EXPENSES		208.956	210.368	150.093
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		242.760	550.089	196.484
Less/ Add	DEPRECIATION/ AMORTISATION		239.755	240.240	186.511
	PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX		3.005	309.849	9.973
Less	EXCEPTIONAL ITEMS		0.000	213.146	0.000
	PROFIT BEFORE TAX		3.005	96.703	9.973
Less	TAX		0.026	29.325	3.228
	PROFIT AFTER TAX		3.031	67.378	6.745
Less	ADJUSTMENTS FOR EARLIER YEARS		0.000	0.000	(0.048)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		74.171	6.793	0.000
	BALANCE CARRIED TO THE B/S		77.202	74.171	6.793
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods at FOB value	2798.433	2801.852	1770.749
	IMPORTS
		Components and Spare Parts including Packing Materials	48.711	37.892	37.807
		Raw Material	4.268	86.472	176.710
		Capital Goods	18.781	0.000	0.000
	TOTAL IMPORTS		71.760	124.364	214.517
	Earnings Per Share (Rs.)		0.07	1.47	0.15

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012
Type	1^st Quarter	2^nd Quarter
Sales Turnover	1076.580	1102.070
Total Expenditure	893.120	894.510
PBIDT (Excl OI)	183.460	207.560
Other Income	(0.370)	0.630
Operating Profit	183.090	208.190
Interest	69.500	73.230
Exceptional Items	0.000	0.000
PBDT	113.590	134.960
Depreciation	59.900	61.550
Profit Before Tax	53.690	73.410
Tax	17.420	23.820
Provisions and Contingencies	0.000	0.000
Reported PAT	36.270	49.590
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	36.270	49.590

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.07	1.64	0.22
Net Profit Margin (PBT/Sales)	(%)	0.07	2.35	0.33
Return on Total Assets (PBT/Total Assets}	(%)	0.09	2.54	0.25
Return on Investment (ROI) (PBT/Networth)		0.00	0.11	0.01
Debt Equity Ratio (Total Liability/Networth)		3.01	3.41	3.98
Current Ratio (Current Asset/Current Liability)		3.14	4.08	12.00

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

OPERATIONAL REVIEW

The Company has achieved all time high turnover of Rs. 4283.000 Millions during the year as compared to Rs. 4109.000 Millions in the previous year, an increase of 4.23%. Export turnover has increased by 4.34% from Rs. 2894.200 Millions in the previous year to Rs. 3019.900 Millions during the year under review and it constitutes 70.51% of the total turnover during the current year.

During the current year the Cotton spinning industry faced unprecedented challenges in terms of steep decline in raw cotton prices and yarn prices. In the year 2010- 11, prices of cotton more than doubled to Rs. 173 per kg in April, 2011, from Rs. 80 per kg in March, 2010 on the back of a combination of robust demand and constrained supply because of lower cotton crop in main cotton producing countries like China, Pakistan and the United States and Government Policy of allowing Exports of cotton without assessing actual production requirement of domestic industry. International prices of cotton started declining from April, 2011. Further, due to subdued demand of yarn in domestic market following closure of dyeing units in Tirupur, a leading hub for hosiery exports and economic uncertainties in European markets, yarn inventories piled up with spinning units. The stock of cotton yarn with the spinners also affected cotton purchases by mills and had a further cascading effect on cotton prices. The cotton prices in India started tumbling and went down by almost 50% by end of July, 2011 from the peak of April, 2011. Spinners loaded with high-cost cotton procured till April, 2011 along with large stock of cotton yarn manufactured from high cost cotton suffered heavy losses during first half of 2011-12.

The company also suffered heavy losses during first half of the current year on account of higher carrying cost of cotton and also due to steep fall in yarn prices. In the new cotton season cotton prices have stabilized and yarn prices have also improved, leading to better realizations and consequently improvement in profitability in second half. In this background the company has reported operating profit (EBIDTA) of Rs 451.716 Millions during the year against Rs 760.457 Millions in previous year and earned net profit (PAT) of Rs 3.031 Millions during the current year against Rs 67.378 Millions in the previous year. However, the Company is optimistic of better performance during the current year 2012 – 13.

MANAGEMENT DISCUSSIONS AND ANALYSIS

INDUSTRY OUTLOOK

Textiles Industry constitutes the largest manufacturing industry in the country accounting for 4 percent of GDP, 14 percent of industrial production and around 17 percent of the country’s total exports. The Industry directly provides employment to 35 million workers and provides indirect employment to another 47 million workers. As per Ministry of Textiles, India has potential to increase its textiles share in the world trade from the current level of 4.50% to 8% and reach at US$ 80 billion by 2020. Thus, the growth and all round development of this industry has direct bearing on the improvement of the economy of the nation.

Cotton Textile constitutes around 60% of the textile industry in India. Cotton is the main raw material for cotton Spinning Mills and its crop depends on behavior of nature. During the year 2010-11 there was shortfall in cotton crop in major cotton producing countries like China, USA and Pakistan which resulted in a steep increase in global cotton prices from US$ 0.84 per lb in October, 2010 to US$ 2.30 lb in March, 2011. There was unprecedented nearly three-fold increase in cotton rates within a period of six months. A premature announcement of cotton exports and lower stock to use also pushed up the domestic prices from Rs. 32500 per candy (356 Kg) to Rs. 62500 per candy during this period. From April, 2011 onwards, there has been a steep decline in cotton prices in the global markets due to general decline in commodity prices and element of speculation in the earlier hike in prices. In tandem with fall in International prices, domestic cotton prices also crashed from April, 2011 and within a period of three months the same declined to Rs. 31000 per candy. Mills normally stock 3 to 4 months requirement of cotton. This led to heavy losses to the industry on account of depletion in the value of stock.

On the basis of complaints of cotton yarn shortage from the value added sectors government restricted export of cotton yarn during the year 2010-11 to 720 million kgs, as against the export potential of 1100 million kgs. Since, demand in the domestic market has been declining from January, 2011 onwards and exports were also not permitted, nearly 500 million kgs of unsold cotton yarn got stuck with mills.

Following the crash in cotton prices, cotton yarn prices also crashed in global as well as domestic markets, leading to further losses. In the current cotton season 2011-12, globally, cotton crop has been estimated to be higher by 8% as compared to last year and in India, also, it is expected to be higher by 10% from 325 lac bales to 356 lac bales. In expectation of good cotton crop internationally and domestically, the prices of cotton have stabilized at present. With the revival of demand of cotton yarn in global market, removal of restrictionon export of cotton yarn, the margins have started improving in the later half of the current year and management foresee better financial results in the coming year.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2012

(Rs. in millions)

Particular	Quarter Ended
	30.06.2012 (Unaudited)
Income from Operations
Net Sales/Income from Operations	1076.509
Other Operating Income	0.072
Total Income from operations (net)	1076.581
Expenses
(a) Cost of materials consumed	618.991
(b) Purchase of Traded Goods	19.807
(c) Changes in inventories of Finished Goods, WIP & Stock in Trade	3.228
(d) Employees benefit expenses	48.543
(e) Power and Fuel	108.111
(f) Depreciation	59.899
(g) Other Expenses	94.447
Total Expenses	953.026
Profit from Operations before Other Income, Finance costs and Exceptional item	123.555
Other Income	(0.370)
Profit/ Loss from Ordinary Activities before Finance costs and Exceptional item	123.185
Finance costs	69.498
Profit/ Loss from Ordinary Activities after Finance costs but Exceptional item	113.586
Profit/(Loss) after Finance Cost but before Exceptional items	53.687
Exceptional item	--
Profit/ Loss from Ordinary Activities before tax	53.687
Tax Expenses
- Current Tax	--
- Deferred Tax Liability/ Assets	17.419
Net Profit/ Loss from Ordinary Activities after tax	36.268
Extraordinary Items	--
Net Profit for the period	36.268
Paid- up Equity Share Capital (Face value of the share – Rs. 10)	458.339
Reserves excluding revaluation reserves as per balance sheet of Previous Accounting Year
Basic & diluted EPS not annualised (before extraordinary items)	0.79
Basic & diluted EPS not annualised (after extraordinary items)	0.79
PARTICULARS OF SHAREHOLDING
1. Public shareholding
Number of Shares	17750437
Percentage of Shareholding	38.73
2. Promoters and promoter group shareholding
a) Pledged/Encumbered
- Number of Shares	7931430
- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	28.24
- Percentage of Shares (as a % of the Total Share Capital of the Company)	17.30
Non - encumbered
- Number of Shares	20152078
- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	71.76
- Percentage of Shares (as a % of the total share capital of the company)	43.97

NOTES:

1 The Provision of Current Tax is net of MAT credit entitlement.

2 No investors' complaint was pending at the beginning & end of the Quarter and no complaint was received during the Quarter.

3 The company's business activities fall within a single business segment (Textiles), in terms of Accounting Standard - 17 of ICAI.

4 The figures of previous year/ quarter have been regrouped/ rearranged wherever required, to make them comparable with the corresponding quarter/year.

5 The above financial results have been approved by the Audit Committee and Board of Directors at their meeting held on 4th August, 2012.

CONTINGENT LIABILITIES NOT PROVIDED FOR

(Rs. in millions)

Particulars	31.03.2012	31.03.2011
Bills discounted with Banks	366.994	404.324
Dispute taxation matters for which no provision has been made :-
Cenvat, Service Tax and Custom Duty	81.499	79.463

FIXED ASSETS:

Ø Freehold Land

Ø Buildings

Ø Plant and Machinery

Ø Electric Installation

Ø Furniture and Fixtures

Ø Office Equipments

Ø Vehicles

WEBSITE DETAILS:

PROFILE:

Starting with one open-end facility, the company has grown into one of the largest producers of 100% cotton yarn and fabrics in India. They possess one of the best pool of skilled workforce in the textile Industry.

Their diverse competencies enable us to address the most challenging business realities effectively. This rich people capital has been manifested in their unmatched reputation, their wide product variety, their export exposure and our above-the-market realizations.

The company has been an innovator in textile field and conducted its business with the purpose of growing into a notable organization. Today, despite the midst of highly fierce and competitive textile markets, Nitin Spinners Ltd. is still poised to serve both local and international markets with a pledge of providing great satisfaction to it's customers. In an effort to finalize this vertical plan, there are plans underway to enter the apparels sector to complete the production chain from yarn to ready-to-wear garments.

MANAGEMENT:

Mr. R.L. Nolkha - Chairman and Managing Director

Mr. R.L. Nolkha is the Chairman and key promoter of the company. A Chartered Accountant, Company Secretary and Cost and works Accountant by qualification, he is responsible for the Overall Administration, Management and strategic policy making of the Company. Being a Technocrat, first generation entrepreneur and a senior management professional, his distinguished career of over three decades in textile industry also includes working at senior level positions with Birla and LNJ group. He is also a member of several industry associations and chambers and chaired as.

Vice - Chairman - NITRA

Deputy Chairman of Rajasthan Textiles Mills Association

Committee Member of C.I.T.I.

Chairman Bhilwara-Ajmer ICWAI Chapter

He is the recipient of prestigious Udyog Patra awarded by the Govt of India in 2003  

Mr. Dinesh Nolkha – Managing Director

Mr. Dinesh Nolkha, a Chartered Accountant, Cost & works Accountant by qualification,  is the Managing Director of the Company and a co-founder of the Company. Besides being responsible for the production facilities, expansion projects, day to day operations and marketing activities, his primary focus is on overseas marketing and sales promotion.

Mr. Nitin Nolkha – Executive Director

Mr. Nitin Nolkha, a Management Graduate, he is the Executive Director of the company. He is responsible for the overall procurement and purchases including Raw Cotton, which is the most critical input of the textile industry.

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. 54.42
UK Pound	1	Rs. 88.29
Euro	1	Rs. 71.49

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--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		36

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.