MIRA INFORM REPORT

Report Date :

29.11.2013

IDENTIFICATION DETAILS

Name :	MAFATLAL INDUSTRIES LIMITED
Registered Office :	Asarwa Road, Ahmedabad – 380016, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	20.01.1913
Com. Reg. No.:	04-000035
Capital Investment / Paid-up Capital :	Rs.439.122 Millions
CIN No.: [Company Identification No.]	L17110GJ1913PLC000035
TAN No.: [Tax Deduction & Collection Account No.]	AHMM01779B
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of fabric and yarn.
No. of Employees :	3200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 14000000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Exist
Comments :	Subject is an established company having satisfactory track record. Company has changed its financial year 2011-12 to end on 31^st March, 2012 instead of 30^th June, 2012. Hence previous financial year was for period of 9 months. Financials of 2012-13 are of 12 months (1^st April to 31^st March). Figures for financial year 2012-13 include the figures of erstwhile mafatlal demin limited and erstwhile mishaper investmenst limited which have been amalgamated with the company with effect from 1^st April 2012. Overall financial position of the company appears to be decent. Trade relation reported to be fair. Business is active. Payment terms are reported to be usually correct. The company can be considered normal for business dealing 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.

INDIAN ECONOMIC OVERVIEW

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating: BBB-
Rating Explanation	Moderate credit quality and average credit risk.
Date	14.11.2013

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.

INFORMATION PARTED BY

Name :	Mr. Asaram Pawar
Designation :	Account Manager
Contact No.:	91-22-67713830
Date :	27.11.2013

LOCATIONS

Registered Office :	Asarwa Road, Ahmedabad – 380016, Gujarat, India
Tel. No.:	91-79-22123944/2123940
Fax No.:	91-79-22123045
E-Mail :	asaram@mafatlals.com rasesh@mafatlas.com
Website :	www.maftlals.com
Location :	Owned
Corporate Office 1:	Kaledonia, 6th Floor, Sahar Road, Andheri (East), Mumbai – 400069, Maharashtra, India
Tel. No.:	91-22-67713800/3900
Fax No.:	91-22-67713924/25
Corporate Office 2 :	Mafatlal House, 4^th Floor, H T Parekh Marg, Backbay Reclamation, Mumbai – 400020, Maharashtra, India
Tel. No.:	91-22-67713800/3900
Fax No.:	91-22-67713924/25
Factory 1 :	Textile Division, Post Box No.: 55, Kapadvanj Road, Nadiad – 387001, Gujarat, India
Tel. No.:	91-268-2550226
Fax No.:	91-268-2565030
Factory 2 (Denim Factory):	Vejalpore Road, Navsari – 396445, Gujarat, India
Tel. No.:	91-2637-243120
Fax No.:	91-2637-241504
Factory 3:	Rambhau Bhogale Marg, Mumbai - 400 010, Maharashtra, India

DIRECTORS

As on 31.03.2013

Name :	Mr. H. A. Mafatlal
Designation :	Chairman
Name :	Mr. P. R. Amin
Designation:	Director
Name :	Mr. P. J. Desai
Designation :	Director
Name :	Mr. V. K. Balasubramanian
Designation :	Director
Name :	Mr. N. K. Parikh
Designation :	Director
Name :	Mr. A. K. Srivastava
Designation :	Director
Name :	Mr. V. R. Gupte
Designation :	Director (w.e.f. 30.05.2013)
Name :	Mr. P. N. Kapadia
Designation :	Director (w.e.f. 30.05.2013)
Name :	Mr. V. P. Mafatlal
Designation:	Vice-Chairman
Name :	Mr. Rajiv Dayal
Designation :	Managing Director and Chief Executive Officer

KEY EXECUTIVES

Name :	Mr. Rasesh Shah
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
		As a % of (A+B)
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	4870883	35.01
Bodies Corporate	5483927	39.42
Any Others (Specify)	65145	0.47
Trusts	65145	0.47
Sub Total	10419955	74.89
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	10419955	74.89
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	9165	0.07
Financial Institutions / Banks	209574	1.51
Insurance Companies	154897	1.11
Sub Total	373636	2.69
(2) Non-Institutions
Bodies Corporate	415992	2.99
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1566233	11.26
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1079080	7.76
Any Others (Specify)	57990	0.42
Trusts	38	0.00
Non Resident Indians	57952	0.42
Sub Total	3119295	22.42
Total Public shareholding (B)	3492931	25.11
Total (A)+(B)	13912886	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)	13912886	0.00

SHAREHOLDING BELONGING TO THE CATEGORY "PROMOTER AND PROMOTER GROUP"

Sl N	Name of the Shareholder	Details of Shares held		Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
		No. of Shares held	As a % of grand total (A)+(B)+(C)
1	Rupal Vishad Mafatlal	12,03,465	8.65	8.65
2	Rekha Hrishikesh Mafatlal	8,04,283	5.78	5.78
3	Priyavrat Hrishikesh Mafatlal	5,54,232	3.98	3.98
4	Anjali Hrishikesh Mafatlal	1,50,999	1.09	1.09
5	Aarti Hrishikesh Mafatlal	1,02,512	0.74	0.74
6	A.N. Mafatlal Karta Of A.N.M. Huf 4 Mafatlal	5,585	0.04	0.04
7	Maithili N Desai	3,303	0.02	0.02
8	Aarti Manish Chadha	1,830	0.01	0.01
9	Anjali Kunal Agarwal	1,830	0.01	0.01
10	Narendra Dharmsinh Desai	1,611	0.01	0.01
11	P.A.Mafatlal As Karta Of P.A.M. Huf 1 Mafatlal	1,455	0.01	0.01
12	Arvind N Mafatlal	1,173	0.01	0.01
13	Vishad P.Mafatlal Pam Huf1 P Mafatlal	455	0.00	0.00
14	Sushilaben Arvind Prasad Mafatlal	297	0.00	0.00
15	Chetna Padmanabh Mafatlal	204	0.00	0.00
16	Vishad Padmanabh Mafatlal	12,11,581	8.71	8.71
17	Hrishikesh Arvind Mafatlal	8,21,578	5.91	5.91
18	Hrishikesh Arvind Mafatlal	4,490	0.03	0.03
19	Navin Fluorine International Limited	17,74,707	12.76	0.00
20	Altamount Products and Services Private Limited	10,64,443	7.65	12.76
21	Sukarma Investments Private Limited	8,39,173	6.03	7.65
22	Nocil Limited	5,66,320	4.07	6.03
23	Mafatlal Impex Private Limited	3,52,643	2.53	4.07
24	Mafatlal Exim Private Limited	3,57,807	2.57	2.53
25	Suremi Trading Private Limited	4,14,054	2.98	1.80
26	Mafatlal Impex Private Limited	41,085	0.30	1.75
27	Arvi Associates Private Limited	25,259	0.18	1.23
28	Gayatri Pestichem Mfg Private Limited	22,305	0.16	0.77
29	Mafatlal Exim Private Limited	18,400	0.13	0.30
30	Pamil Investments Private Limited	4,197	0.03	0.18
31	Sushripada Investments Private Limited	2,269	0.02	0.16
32	Suremi Trading Private Limited	1,225	0.01	0.13
33	Sumil Holdings Private Ltd	10	0.00	0.03
34	Milap Texchem Private Limited	10	0.00	0.02
35	Milekha Texchem Company Private Limited	10	0.00	0.01
36	Shamir Texchem Private Limited	10	0.00	0.00
37	Sheth Mafatlal Gagalbhai Foundation Trustno 2	786	0.01	0.00
38	Sheth Mafatlal Gagalbhai Foundation Trustno.3	786	0.01	0.00
39	Sheth Mafatlal Gagalbhai Foundation Trust No 10	786	0.01	0.00
40	Sheth Mafatlal Gagalbhai Foundation Trust No 9	786	0.01	0.01
41	Sheth Mafatlal Gagalbhai Foundation Trust No22	786	0.01	0.01
42	Sheth Mafatlal Gagalbhai Foundation Trust No 20	786	0.01	0.01
43	Sheth Mafatlal Gagalbhai Foundation Trust No 5	786	0.01	0.01
44	Sheth Mafatlal Gagalbhai Foundation Trust No 7	786	0.01	0.01
45	Shri Hrishikesh Arvind Mafatlal Public Charitable Trust No 1	786	0.01	0.01
46	Shri Arvind N Mafatlal Public Charitable Trust No 7	786	0.01	0.01
47	Shri Arvind N Mafatlal Public Charitable Trust No 6	786	0.01	0.01
48	Shri Padmanabh Arvind Mafatlal Public Charitable Trust No 1	786	0.01	0.01
49	Shri Padmanabh Arvind Mafatlal Public Charitable Trust No 2	786	0.01	0.01
50	Shri Padmanabh Arvind Mafatlal Public Charitable Trust No 3	786	0.01	0.01
51	Navinchandra Mafatlal Charity Trust No 11	786	0.01	0.01
52	Navinchandra Mafatlal Charity Trust No 2	786	0.01	0.01
53	Navinchandra Mafatlal Charity Trust No 3	786	0.01	0.01
54	Navinchandra Mafatlal Charity Trust No 6	786	0.01	0.01
55	Navinchandra Mafatlal Charity Trust No 12	786	0.01	0.01
56	Navinchandra Mafatlal Charity Trust No 13	786	0.01	0.01
57	Navinchandra Mafatlal Charity Trust No 15	786	0.01	0.01
58	Shri Pransukhlal Charity Trust No 3	786	0.01	0.01
59	Shri Pransukhlal Charity Trust No 2	786	0.01	0.01
60	Navinchandra Mafatlal Charity Trust No 4	786	0.01	0.01
61	Navinchandra Mafatlal Charity Trust No 7	786	0.01	0.01
62	Navinchandra Mafatlal Charity Trust No 14	786	0.01	0.01
63	Navinchandra Mafatlal Charity Trust No 5	786	0.01	0.01
64	Shri Arvind N Mafatlal Public Charitable Trust No 2	786	0.01	0.01
65	Shri Padmanabh Arvind Mafatlal Public Charitable Trust No 4	786	0.01	0.01
66	Shri Padmanabh Arvind Mafatlal Public Charitable Trust No 5	786	0.01	0.01
67	Navinchandra Mafatlal Charity Trust No 9	786	0.01	0.01
68	Sheth Mafatlal Gagalbhai Foundation Trust No 12	786	0.01	0.01
69	Sheth Mafatlal Gagalbhai Foundation Trust No 13	786	0.01	0.01
70	Sheth Mafatlal Gagalbhai Foundation Trust No 6	786	0.01	0.01
71	Shri Hrishikesh Arvind Mafatlal Public Charitable Trust No 2	786	0.01	0.01
72	Sheth Mafatlal Gagalbhai Foundation Trust No 8	786	0.01	0.01
73	Shri Hrishikesh Arvind Mafatlal Public Charitable Trust No 3	786	0.01	0.01
74	Shri Hrishikesh Arvind Mafatlal Public Charitable Trust No 4	786	0.01	0.01
75	Shri Hrishikesh Arvind Mafatlal Public Charitable Trust No 5	786	0.01	0.01
76	Seth Mafatlal Gagalbhai Foundation Trust No 11	786	0.01	0.01
77	Shri Arvind N Mafatlal Public Charitable Trust No 8	786	0.01	0.01
78	Shri Arvind N Mafatlal Public Charitable Trust No 5	786	0.01	0.01
79	Shri Arvind N Mafatlal Public Charitable Trust No 4	786	0.01	0.01
80	Shri Pransukhlal Charity Trust No 5	786	0.01	0.01
81	Shri Pransukhlal Charity Trust No 4	786	0.01	0.01
82	Shri Hrishikesh Arvind Mafatlal Public Charitbale Trust No 6	786	0.01	0.01
83	Seth Mafatlal Gagalbhai Foundation Trust N0.4	786	0.01	0.01
84	Navinchandra Mafatlal Charity Trust N0 8	786	0.01	0.01
85	Navinchandra Mafatlal Charity Trust N0 10	786	0.01	0.01
86	Shri Arvind N Mafatlal Public Charitable Trust	786	0.01	0.01
87	Seth Mafatlal Gagalbhai Foundation Trust N0 14	786	0.01	0.01
88	Seth Mafatlal Gagalbhai Foundation Trust N0 17	786	0.01	0.01
89	Seth Mafatlal Gagalbhai Foundation Trust N0 16	786	0.01	0.01
90	Shri Arvind N Mafatlal Public Charitable Trust N0 3	786	0.01	0.01
91	Sheth Mafatlal Gagalbhai Foundation Trust No.19	786	0.01	0.01
92	Shri Pransukhlal Charity Trust No 6	786	0.01	0.01
93	Sheth Mafatlal Gagalbhai Foundation Trust No 21	786	0.01	0.01
94	Shri Pransukhlal Charity Trust	786	0.01	0.01
95	Sheth Mafatlal Gagalbhai Foundation Trust No 18	786	0.01	0.01
96	Sheth Mafatlal Gagalbhai Foundation Trust No 15	786	0.01	0.01
97	Shri Padmanabh Arvind Mafatlal Public Charitable Trust No 6	786	0.01	0.01
98	Mrs Sushila Arvind Mafatlal Public Charitable Trust No 1	624	0.00	0.01
99	Mrs Sushila Arvind Mafatlal Public Charitable Trust No 2	624	0.00	0.01
100	Mrs Sushila Arvind Mafatlal Public Charitable Trust No 3	624	0.00	0.00
101	Vishad Padmanabh Mafatlal Public Charitable Trust No 4	624	0.00	0.00
102	Mrs Rekha Hrishikesh Mafatlal Public Charitable Trust No 1	624	0.00	0.00
103	Mrs Rekha Hrishikesh Mafatlal Public Charitable Trust No 5	624	0.00	0.00
104	Mrs Rekha Hrishikesh Mafatlal Public Charitable Trust No 4	624	0.00	0.00
105	Mrs Rekha Hrishikesh Mafatlal Public Charitable Trust No 3	624	0.00	0.00
106	Mrs Rekha Hrishikesh Mafatlal Public Charitable Trust No 2	624	0.00	0.00
107	Mrs Sushila Arvind Mafatlal Public Charitable Trust N0.4	624	0.00	0.00
108	Mrs.Sushila Arvind Mafatlal Public Charitable Trust N0.5	624	0.00	0.00
109	Mrs Miloni Padmanabh Mafatlal Public Charitable Trust No 1	624	0.00	0.00
110	Mrs Miloni Padmanabh Mafatlal Public Charitable Trust No 2	624	0.00	0.00
111	Mrs Miloni Padmanabh Mafatlal Public Charitable Trust N0 4	624	0.00	0.00
112	Vishad P Mafatlal Public Charitable Trust N0.1	624	0.00	0.00
113	Mrs Miloni Padmanabh Mafatlal Public Charitable Trust No.3	624	0.00	0.00
114	Vishad Padmanabh Mafatlal Public Charitable Trust No 2	624	0.00	0.00
115	Vishad Padmanabh Mafatlal Public CharitableTrust No-3	624	0.00	0.00
116	Shri Padmakesh Public Charity Trust No 4	542	0.00	0.00
117	Shri Padmakesh Public Charity Trust No 3	542	0.00	0.00
118	Shri Padmakesh Public Charity Trust No 2	542	0.00	0.00
119	Shri Padmakesh Public Charity Trust No 1	542	0.00	0.00
120	Shri Rishipad Public Charity Trust N0 3	542	0.00	0.00
121	Shri Rishipad Public Charity Trust N0 2	542	0.00	0.00
122	Shri Rishipad Public Charity Trust N0 4	542	0.00	0.00
123	Shri Rishipad Public Charity Trust N0.1	542	0.00	0.00
124	Mrs.Vijayalaxmi Navinchandra Mafatlal Public Charity Trust No 16	393	0.00	0.00
125	Mrs Vijayalaxmi Navinchandra Mafatlal Public Charity Trust No 19	393	0.00	0.00
126	Mrs Vijayalaxmi Navinchandra Mafatlal Public Charity Trust No 20	393	0.00	0.00
127	Maithiliben N Desai	256	0.00	0.00
128	Mrs Miloni Padmanabh Mafatlal Public Charitable Trust No 5	196	0.00	0.00
	Total	1,04,19,955	74.89	75.02

SHAREHOLDING BELONGING TO THE CATEGORY "PUBLIC" AND HOLDING MORE THAN 1% OF THE TOTAL NO. OF SHARES

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	Bharat Jayantilal Patel	231841	1.67	1.67
2	State Bank Of India	168428	1.21	1.21
3	Acira Consultancy Private Limited	150000	1.08	1.08
4	Life Insurance Corporation Of India	142815	1.03	1.03
	Total	693084	4.98	4.98

BUSINESS DETAILS

Line of Business :	Manufacturer of fabric and yarn.
Exports :
Products :	Fabric and yarns
Countries :	60% Exports are done to yemen and rest of exports are done to dubai.
Imports :
Products :	Machinery
Countries :	· China · Bangladesh
Terms :
Selling :	L/C and Advance
Purchasing :	L/C and Credit

GENERAL INFORMATION

Customers :

· Wholesalers

· Retailers

· Dealer

· Distributor

No. of Employees :

3200 (Approximately)

Bankers :

· HDFC Bank Limited, Fort Branch

· State Bank of Hyderabad for Exports

· Axis Bank for Denim Division

Facilities :

Secured Loan	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Long-term Borrowings
From Banks	375.048	0.000
From Banks - Secured - Loan for Vehicles	4.218	0.000
From Others - Secured	151.038	0.000
Short-term borrowings
From Banks
* - Overdraft facility from Banks	276.018	54.473
** - Cash credit from Banks	93.382	0.000
Total	899.704	54.473
NOTE: LONG-TERM BORROWINGS (i) For Current maturities of Long Term Borrowings; - Other Current Liabilities. (ii) (a) Term loans of Rs. 415.815 Millions from a bank are repayable in quarterly installments till March 2018. These Loans are secured by a pari passu mortgage / hypothecation charge on the Fixed Assets, including leasehold land and hypothecation charge on all current assets of erstwhile Mafatlal Denim Limited. The loans carry interest linked to the lenders’ Prime Lending Rates. The effective rate of interest for the year was @ 15.75% p.a. (b) Term loan of Rs. 75.000 Millions from a bank is repayable in monthly installments till October 2014. The Loan is secured by a pari passu mortgage / hypothecation charge on the Current Assets of erstwhile Mafatlal Denim Limited. The loans carry interest linked to the lenders’ Base Rates. The effective rate of interest for the year was @ 13.75% p.a. (iii) Loan for Vehicles from Banks is secured by hypothecation of respective vehicles. The Loan carries interest @ 11% p.a. (iv) (a) Term loan of Rs. 109.425 Millions from a Financial Institution is repayable in quarterly installments till March 2018. The Loan is secured by a pari passu mortgage / hypothecation charge on the Company’s Fixed Assets, including leasehold land and hypothecation charge on all current assets of erstwhile Mafatlal Denim Limited. The loan carry an interest linked to the lenders’ Prime Lending Rates. The effective rate of interest for the year was in the range 16.50% to 16.75% p.a. (b) Term loan of Rs. 74.365 Millions from a Financial Institution is repayable in quarterly installments till March 2018. The Loan is secured by a hypothecation charge on the current assets of erstwhile Mafatlal Denim Limited. The loan carries interest @ 12.25% p.a. 56 SHORT-TERM BORROWINGS Secured against Fixed Deposits of Rs. 300.894 Millions, date of maturity 15th March, 2014. (Previous period: Rs. 258.095 Millions, date of maturity 14^th March, 2013). ** Cash credit from bank is secured by pari passu charge on the current assets and a Second Mortgage/ Hypothecation charge of the Fixed assets of erstwhile Mafatlal Denim Ltd. The cash credit is repayable on demand and carry an interest @ 14.5% p.a.

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Solicitors:	Vigil Juris
Subsidiary Companies:	· Ibiza Industries Limited (also a joint venture) currently under liquidation · Sunanda Industries Limited (direct subsidiary since 01.04.2012) (In the previous period, subsidiary through wholly owned subsidiary, Mishapar Investments Limited) currently under liquidation. · Mayflower Textiles Private Limited (direct subsidiary since 01.04.2012) (In the previous period subsidiary through wholly ownedsubsidiary, Mishapar Investments Limited) · Myrtle Textiles Private Limited (direct subsidiary since 01.04.2012) (In the previous period subsidiary through wholly ownedsubsidiary, Mishapar Investments Limited) · Repal Apparel Private Limited (direct subsidiary since 01.04.2012) (In the previous period subsidiary through wholly ownedsubsidiary, Mishapar Investments Limited) · Mafatlal Services Limited · Mafatlal Global Apparel Limited (since 01.04.2011 through wholly owned subsidiary, Mishapar Investments Limited) (till29.09.2012) · Silvia Apparel Limited (till 30.03.2013) · Mishapar Investments Limited (till 31.03.2012) (wholly owned subsidiary which amalgamated with the Company).
Jointly Controlled Entities:	· AL Fahim Mafatlal Textiles LLC- A Joint Venture with Al Fahim Linez LLC- (UAE)
Associates:	· Mafatlal VK Intex Limited · Mafatlal Engineering Industries Limited- currently under liquidation · Mafatlal Limited - (Incorporated in United Kingdom)- currently under liquidation · Sushmita Engineering and Trading Limited · Mafatlal Global Apparel Limited (since 29.09.2012) · Repos Trading Company Limited
Enterprises over which key management personnel and their relatives are able to exercise significant influence:	· NOCIL Limited · Navin Fluorine International Limited · Sulakshana Securities Limited · Krishnadeep Housing Development Private Limited · Mafatlal Impex Private Limited · Mafatlal Denim Limited (till 31.03.2012, since amalgamated with the Company pursuant to the Scheme of Amagamation) · Myrtle Chemtex Trading Private Limited

CAPITAL STRUCTURE

As on 31.07.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1,01,46,054	Equity Shares	Rs.10/- each	Rs. 101.461 Millions
6,00,00,000	Fully Redeemable Non-Cumulative Preference Shares	Rs.10/- each	Rs. 600.000 Millions
2,98,53,946	Unclassified Shares	Rs.10/- each	Rs. 298.539 Millions
	Total		Rs. 1000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13912886	Equity Shares	Rs.10/- each	Rs. 139.129 Millions

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1,01,46,054	Equity Shares	Rs.10/- each	Rs. 101.461 Millions
6,00,00,000	Fully Redeemable Non-Cumulative Preference Shares	Rs.10/- each	Rs. 600.000 Millions
2,98,53,946	Unclassified Shares	Rs.10/- each	Rs. 298.539 Millions
	Total		Rs. 1000.000 Millions

Issued:

No. of Shares	Type	Value	Amount
1,01,46,054	Equity Shares	Rs.10/- each	Rs. 101.461 Millions
3,00,00,000	Fully Redeemable Non-Cumulative Preference Shares	Rs.10/- each	Rs. 300.000 Millions
	Total		Rs. 401.461 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
98,13,471	Equity shares of Rs.10 each with voting rights (net of 389 Equity shares of Rs. 10 each cancelled/other adjustments during the year pursuant to scheme of Amalgamation	Rs.10/- each	Rs. 98.134 Millions
	Less: Allotment money / Calls in arrears		Rs. 0.006 Millions
3,00,00,000	Fully Redeemable Non-Cumulative Preference Shares	Rs.10/- each	Rs. 300.000 Millions
40,99,415	Equity Share Capital Suspense account (Equity shares of Rs. 10 each to be issued as fully paid-up pursuant to merger of Mafatlal Denim Limited with the Company under the scheme of amalgamation without the payment being received in cash)	Rs.10/- each	Rs. 40.994 Millions
	Total		Rs. 439.122 Millions

Note:

Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting year period(excluding Equity Share Capital Suspense)

Particulars	Opening balance	Allotment money call in arrears	Cancelled pursuant to scheme of Amalgamation/other adjustment	Closing balance
Equity shares with voting rights
Year ended 31st March, 2013
Number of shares	9813860	--	389	9813471
Amount (Rs. In Millions)	98.138	0.006	0.004	98.128
Period ended 31st March, 2012
Number of shares	9813860	--	--	9813860
Amount (Rs. In Millions)	98.138	0.006	--	98.132

Particulars	Opening balance	Redemption	Closing balance
Fully Redeemable Non-Cumulative Preference Shares
Year ended 31st March, 2013
Number of shares	3000000	--	30000000
Amount (Rs. In Millions)	300.000	--	300.000
Period ended 31st March, 2012
Number of shares	60000000	30000000	30000000
Amount (Rs. In Millions)	600.000	300.000	300.000

(i) Terms / rights attached to Equity shares:

The Company has only one class of equity shares having a par value of ` 10 per share. Each equity shareholder is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March, 2013, the amount of dividend, per share, recognized as distributions to equity shareholders is ` 5 (Previous period ended 31st March, 2012 ` NIL).

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by shareholders.

(ii) Terms / rights attached to Preference shares:

In terms of Modified Scheme (MS) approved by BIFR in June 2009, 600,00,000 Fully Redeemable Non-Cumulative Preference Shares of Rs. 10 each are redeemable over a period of eight years as a subordinated liability to the dues of workers, statutory agencies and the secured creditors. 50% of the shares were redeemed during the period ended 31^st March, 2012 and remaining 50% of the shares have since been redeemed in April 2013. Upon, declaration these shares carry a rate of dividend of 1% from the financial year commencing on or after 1st January, 2014.

Details of shareholders holding more than 5% shares in the company:

Equity Shares of Rs.10 each fully paid name	31.03.2013
	Nos	% Holding
Vishad Padmanabh Mafatlal	1211581	12.35
Rupal Vishad Mafatlal	1203465	12.26
Hrishikesh Arvind Mafatlal	826067	8.42
Rekha Hrishikesh Mafatlal	804283	8.20
NOCIL Limited	566320	5.77
Priyavrata Hrishikesh Mafatlal	554232	5.65
Fully Redeemable Non-Cumulative Preference Shares of Rs.10 each fully paid	31.03.2013
	Nos	% Holding
Navin Fluorine International Limited	30000000	100

During the period of five years immediately preceding the reporting date:

	Nos	31.03.2013
Preference shares redeemed by the company	30,000,000	300.000

Calls unpaid (by other than officers and directors)

	31.03.2013
Calls Unpaid	0.006

During 1987-88, 535,000 shares (of Rs. 100 each) were allotted on rights basis subject to the result of suit nos. 3181 and 3182 of 1987 filed by three shareholders against the Company and Others in the Ahmedabad City Civil Court. The suits are pending disposal.

During the year 2010-11, 300,00,000 Optionally Convertible Fully Redeemable Non-Cumulative Preference Shares of Rs. 10 each were converted into 48,13,860 Equity shares of ` 10 each of the Company at a premium of Rs. 52.32 per equity share.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	439.122	398.132	698.132
(b) Reserves & Surplus	3142.523	2954.596	3473.195
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	3581.645	3352.728	4171.327
(3) Non-Current Liabilities
(a) long-term borrowings	530.304	0.000	0.000
(b) Deferred tax liabilities (Net)	42.500	0.000	0.000
(c) Other long term liabilities	81.634	46.225	34.409
(d) long-term provisions	49.636	21.986	47.371
Total Non-current Liabilities (3)	704.074	68.211	81.780
(4) Current Liabilities
(a) Short term borrowings	369.400	55.407	658.055
(b) Trade payables	1014.262	263.033	1069.909
(c) Other current liabilities	495.735	155.276	697.085
(d) Short-term provisions	155.923	8.920	1623.642
Total Current Liabilities (4)	2035.320	482.636	4048.691
TOTAL	6321.039	3903.575	8301.798
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	930.959	163.923	156.337
(ii) Intangible Assets	0.808	0.000	0.000
(iii) Capital work-in-progress	624.853	36.437	4.997
(iv) Intangible assets under development	8.184	0.000	0.000
(b) Non-current Investments	487.158	500.980	547.725
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	313.338	245.082	212.828
(e) Other Non-current assets	6.934	1.079	1.079
Total Non-Current Assets	2372.234	947.501	922.966
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1066.320	287.733	267.955
(c) Trade receivables	1221.663	518.199	609.170
(d) Cash and cash equivalents	1414.027	1892.284	6346.266
(e) Short-term loans and advances	232.906	244.485	135.706
(f) Other current assets	13.889	13.373	19.735
Total Current Assets	3948.805	2956.074	7378.832
TOTAL	6321.039	3903.575	8301.798

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	7974.907	1437.488	6828.058
		Other Income	428.906	369.491	224.537
		TOTAL (A)	8403.813	1806.979	7052.595
Less	EXPENSES
		Cost of materials consumed	2026.964	352.893	543.888
		Purchases of stock-in-trade (Trading Activity)	2956.717	263.888	230.348
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(257.168)	(6.384)	(103.048)
		Employee benefits expense	727.448	374.298	701.754
		Other expenses	2049.947	931.954	2077.130
		Exceptional items	(69.774)	504.076	(1608.677)
		Cost of land sold	0.000	0.000	0.052
		TOTAL (B)	7434.134	2420.725	1841.447
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		969.679	(613.746)	5211.148
Less	FINANCIAL EXPENSES (D)		319.992	24.511	108.588
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		649.687	(638.257)	5102.560
Less/ Add	DEPRECIATION/ AMORTISATION (F)		144.405	20.342	25.248
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		505.282	(658.599)	5077.312
Less	TAX (H)		133.689	(140.000)	1271.712
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		371.593	(518.599)	3805.600
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		376.828	1195.427	(2610.173)
Add	PURSUANT TO SCHEME OF AMALGAMATION		(190.871)	0.000	0.000
Less	APPROPRIATIONS
		Transfer to Capital Redemption Reserve	0.000	300.000	0.000
		Transfer to General Reserve	37.500	0.000	0.000
		Proposed Final Dividend	69.564	0.000	0.000
		Corporate Dividend Tax	11.822	0.000	0.000
	BALANCE CARRIED TO THE B/S		438.664	376.828	1195.427
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	655.186	255.868	306.268
	TOTAL EARNINGS		655.186	255.868	306.268
	IMPORTS
		Raw Materials	144.074	0.000	0.000
		Stores & Spares	66.614	2.542	3.054
		Capital Goods	303.625	0.000	0.000
	TOTAL IMPORTS		514.313	2.542	3.054
	Earnings / (Loss) Per Share (Rs.)		26.71	(52.84)	387.78

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	4.42	(28.70)	53.96
Net Profit Margin (PBT/Sales)	(%)	0.06	(45.82)	74.36
Return on Total Assets (PBT/Total Assets}	(%)	9.72	(19.57)	65.52
Return on Investment (ROI) (PBT/Networth)		0.14	(0.20)	1.22
Debt Equity Ratio (Total Debt /Networth)		0.25	0.02	0.16
Current Ratio (Current Asset/Current Liability)		1.94	6.12	1.82

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS:

Particulars	31.03.2013	31.03.2012	31.03.2011
	(Rs. In Millions)
Current maturities of long-term debt
From Banks - Secured	115.767	0.000	0.000
From Banks - Secured - Loans for Vehicles	1.604	0.000	0.000
From Others - Secured	32.752	0.000	0.000
Total	150.123	0.000	0.000

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	Yes
10]	Designation of contact person	Yes
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	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	Yes
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	Yes
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

LITIGATION DETAILS

HIGH COURT OF GUJARAT

SPECIAL CIVIL APPLICATION No. 9175 of 2010
Status : PENDING	( Converted from : ST/6122/2010 )	CCIN No : 001021201009175

Last Listing Date:

26/07/2011

Coram

· HONOURABLE MR.JUSTICE RAJESH H.SHUKLA

·

.NO.

Name of the Petitioner

Advocate On Record

1

PAL CREDIT AND CAPITAL LIMITED

MR NEHAL R JOSHI for: Petitioner(s) 1

S.NO.

Name of the Respondant

Advocate On Record

1

MAFATLAL INDUSTRIES LIMITED

RULE SERVED for :Respondent(s) 1
MRS SANGEETA N PAHWA for :Respondent(s) 1

Presented On

: 12/05/2010

Registered On

: 12/05/2010

Bench Category

: SINGLE BENCH

District

: NAVSARI

Case Originated From

: THROUGH ADVOCATE

Listed

: 16 times

StageName

: FOR FINAL HEARING

Office Details

S. No.	Filing Date	Document Name	Advocate Name	Court Fee on Document	Document Details
1	12/05/2010	CERTIFIED COPY	MR NEHAL R JOSHI ADVOCATE for PETITIONER(s) 1	2	-
2	12/05/2010	VAKALATNAMA	MR NEHAL R JOSHI ADVOCATE for PETITIONER(s) 1	5	-
3	12/05/2010	MEMO OF APPEAL/PETITION/SUIT	MR NEHAL R JOSHI ADVOCATE for PETITIONER(s) 1	100	-
4	15/08/2010	VAKALATNAMA	MR NEHAL R JOSHI ADVOCATE for PETITIONER(s) 1	-	MR NEHAL R JOSHI:1
5	15/08/2010	DOCUMENT	RULE SERVED for RESPONDENT(s) 1	-	RULE SERVED:1
6	30/08/2010	VAKALATNAMA	MRS SANGEETA N PAHWA ADVOCATE for RESPONDENT(s) 1	5	-
Linked Matters

S. No.	CaseDetail	Status Name	Disposal Date	Action/Coram
1	CIVIL APPLICATION/12938/2010	DISPOSED	09/12/2010	CA DISPOSED OF · HONOURABLE MR.JUSTICE M.D. SHAH
Court Proceedings

S. No.	Notified Date	CourtCode	Board Sr. No.	Stage	Action	Coram
1	26/07/2011	18	-	FOR FINAL HEARING	NEXT DATE	· HONOURABLE MR.JUSTICE RAJESH H.SHUKLA

UNSECURED LOAN

PARTICULARS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Short-term borrowings
From Bank ***	0.000	0.934
Total	0.000	0.934
NOTE: *** Short term loan from bank is obtained by placing fixed deposit of Mafatlal Industries Employees’ Co-operative Credit Society at Nadiad as Collateral.

YEAR IN RETROSPECT:

The year was a historic year for the Company in many ways. The Company completed 100 years of its existence and also took a major decision in amalgamating Mafatlal Denim Limited and Mishapar Investments Limited with itself as per the Scheme of Amalgamation sanctioned by Hon’ble High Courts of Gujarat and Mumbai with effect from the appointed date of 01.04.2012.

The benefits of the amalgamation are reflected in the increase in Revenue to Rs.8403.800 Millions, PBIDT to Rs.899.900 Millions and PAT to Rs.371.600 Millions for FY 12-13.

The general business environment continued to be challenging due to the uncertain global economic scenario and the deceleration of India’s GDP growth. The Company has finetuned its business strategy by focusing on capital investments, cost reduction initiatives through VRS, improvement in product mix and creating a visibility for further strengthening Mafatlals brand.

PROJECT PROMOTION DIVISION:

NOCIL LIMITED (NOCIL):

The year experienced one of the most challenging business environments which the rubber chemicals industry has ever faced. Most major customers of NOCIL undertook significant production cuts to align their production with the decline in the demand from the automobile sector. This in turn, resulted in lower demand for Rubber Chemicals.

Despite this, NOCIL’s turnover for the year, touched Rs.5270.000 Millions as compared to Rs.5110.000 Millions in the previous year, representing an increase of about 3%. The net profit was Rs.424.900 Millions as compared to Rs.339.9000 Millions in the previous year.

As reported last year, one of the major initiatives undertaken by NOCIL’s management, was to set-up a new manufacturing facility at Dahej in Gujarat, with a much improved process technology, to produce a key intermediate for an important product in the range of rubber chemicals. The said facility commenced commercial production from early March 2013.

MANAGEMENT DISCUSSION AND ANALYSIS

ECONOMY REVIEW

Global economic scenario remained turbulent in the year, especially in Europe. The uncertainties continued to remain in the current year as well. India’s GDP growth decelerated for the second year in succession due to abysmal performance in all the sectors, specially in the manufacturing sector.

TEXTILES SECTOR HIGHLIGHTS 2012-13

The Indian textiles sector rebounded after a poor 2011- 12, growing about 7.5% on higher volumes and improved realization. Total yarn production increased about 6.8% while total fabric production grew about 7.1% in 2012-13.

Exports remained sluggish, order sizes declining for apparel exporters even as realisations increased due to rupee depreciation. The year was marked by a restoration of operating margins for textile players across the value chain led by steady cotton prices and positive liquidity. After trending upwards over June-August 2012, raw cotton prices declined in September 2012 due to higher-than-expected domestic cotton arrivals.

INDUSTRY OUTLOOK

The Indian textiles market is expected to grow attractively for the following reasons:

Increasing retail penetration: Textiles and clothing retail comprise 40% of organised retailing in India; an increase in the share of organised retail from about 5% to about 24% by FY 2020 could increase retail clothing offtake.

Higher disposable incomes: India’s per capita income is estimated at USD 1200 per annum and rising.

Favorable demographic profile: The proportion of India’s economically productive population (15-60 years) in its total population is rising; almost 50% of its population below 26 catalyses textile consumption.

Higher urban growth: India’s urban population (and related incomes) is rising rapidly, strengthening apparel consumption.

Rising rural disposable incomes and aspirations are driving the offtake of textile products.

INDIAN TEXTILES INDUSTRY GROWTH

India’s domestic textile and apparel market is estimated at about USD 58 billion with the potential to grow at a 9.5% CAGR to a size of USD 141 billion by 2021. India’s share of the world’s textile and apparel exports stands at 4.5%. With an increasing shift of textile and apparel production to Asia and declining Chinese competitiveness, this figure is expected to increase to 8% by 2020 with a corresponding export value of USD 82 billion. Mafatlal Industries is cautiously optimistic of its prospects for FY14 on account of a stronger product mix, wider distribution network and amalgamation benefits.

DENIM INDUSTRY

Denim acceptance is rising in India, the fabric being accepted as comfort and fashion wear in urban and rural India. The Indian denim market is estimated at about 300 mn pairs of jeans and projected to grow to 550-600 million pairs by 2015-16.

Half of India’s population is less than 26 years of age. Nearly 80% of India’s denim is consumed by men, but women’s denim wear is projected to grow faster and account for more that 25% of the total market by 2015.

MAFATLAL INDUSTRIES ANALYSIS

A 100 year old reputed textile company continues to counter its weaknesses arising out of old equipments, rising labour and utility costs by capital investments in technology and expanding its product portfolio to cater to large customer base.

The significant opportunities for the company are an ever growing demand for its quality products in India and for

expanding its global business due to window arising out of gradual decline in China’s competitiveness. The threats to the company, closely monitored and addressed, comprise of fluctuating raw material costs, volatile exchange rates and competition from global and Indian low cost producers.

OPERATIONAL REVIEW

The period saw the implementation of the company’s business strategy objectives comprising of continued capital investments in the latest processing equipment, cost reduction initiatives and improvement of the product mix.

An amount of Rs.430.000 Millions was spent on capex in the Nadiad and Navsari factories during the year. State-of-the-art machines for process house and for product development were ordered and some of them have been installed and commissioned during the year. Procurement and installation of the balance machines is in progress and will be completed by June 2013. The captive power co-generation plant of 3 MW capacity was ordered during the year and will be operational by March 2014. This will reduce cost of power and increase process house production capacity. These facilities will improve the Company’s competitiveness in the domestic and international markets in terms of cost and quality as well as focus on higher value added products resulting in improved profitability.

The VRS scheme, which was started in the previous period, was continued in the current year as well. A total of 1,145 employees (37% of the total workforce) have accepted VRS up to March 2013.

With the availability of working capital and refurbishment of retained old machinery as well as installation of new machines, the production levels witnessed a substantial increase during the current year.

During the year, several initiatives were taken to create a visibility for further strengthening Mafatlal’s brand and towards this end, the dealer and distribution network was significantly increased Pan India. Several new products were also launched including a range of home furnishing products, premium suitings and linen fabrics. The Company is now amongst the largest suppliers of School Uniforms in India. The corporate business and institutional wear business was also buoyant.

The denim plant at Navsari continues to run at full capacity. An additional capex of Rs. 280.000 Millions was spent during the year to further increase the denim capacity. The denim fall-winter 2012 collection was well accepted by their customers.

The cotton scenario during the year was quite stable. The Indian Cotton prices moved in a narrow range and the level of price volatility reduced compared to the previous year.

CORPORATE INFORMATION

Subject is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the Mumbai and Ahmedabad stock exchanges. The Company belongs to the reputed industrial house of Arvind Mafatlal Group in India, established in 1905. The Company is engaged in textile manufacturing and trading, having its units at Nadiad and Navsari.

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10417717	16/05/2013 *	100,000,000.00	AXIS BANK LIMITED	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW G ARDEN ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	B75331108
2	10410058	01/03/2013	101,940,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTR E, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, IN DIA	B70180328
3	10055732	09/06/2007	70,000,000.00	UTI BANK LIMITED	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW G ARDEN ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	A16752685
4	10060397	02/02/2007	150,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	A12367371
5	10013831	11/09/2006 *	620,000,000.00	UTI BANK LIMITED	ATLANTA 209 NARIMAN POINT, MUMBAI, MAHARASHTRA - 400201, INDIA	A03478914

Note: * Date of charge modification

CONTINGENT LIABILITIES:

(Rs. in millions)

PARTICULARS	31.03.2013	31.03.2012
Bills of exchange discounted	35.763	11.246
Demands of income-tax authorities disputed in appeals (mainly relate to disallowance of investment/ loan write off, claim of interest on refund of excise duty/ sales tax, disallowance of chapter VIA deductions, etc. (pending before the Income-tax Appellate Tribunal/ High Court))	70.132	66.935
Demands under excise and other proceedings disputed in appeals (mainly relating to matters like differential duty on revision of assessable value of yarn captively consumed, duty on T.C. hard waste, duty on drill etc. (pending at various stages, from Assistant Commissioner to CESTAT))	261.489	269.721
Show Cause Notice issued by Commissioner of Central Excise, Ahmedabad- III on availment of Cenvat Credit on exempted goods for the period 2007-08, 2008-09 and 2009-2010.	145.327	145.327
Claims against the Company not acknowledged as debts (mainly relating to dispute on fixed water charges at Navsari Unit, disputed service tax, interest on sales tax)	11.338	74.309
Concessional customs duty on import of machinery under EPCG Scheme payable subject to fulfillment of mandatory import/ export obligation. The Company had submitted a bond to the authorities of Rs.100.000 Millions.	113.611	107.401
Claims made by workers against the Company (mainly relating to matters like termination, compensation etc.)	119.161	116.329
Demands from Director General of Foreign Trade against Advance License	0.479	0.479
The Company is a lessee in respect of the land on which Mafatlal Centre and Mafatlal Chambers is erected. In this regard: In case of Mafatlal Centre: a) A demand for Rs. 2,71.247 Millions (Previous period Rs. 443.536 Millions) for the period from 01.04.2008 to 31.03.2010 has been raised by Brihanmumbai Mahanagarpalika towards Property Taxes in respect of the properties owned by various owners for the respective floors. No demand is raised in respect of common areas / properties in the name of the Company. The demand has been challenged by owners of various floors at appropriate forum and the matter is subjudice. In case the demand is finally upheld the amount will be paid by the concerned co-owners and the Company will have no additional liability b)Pursuant to introduction of new system of capital based assessment of Property Taxes, a demand for Rs. 19.630 Millions for the period from 01.04.2010 to 31.03.2013 has been raised in respect of the properties owned by various owners for the respective floors and in respect of common areas / properties in the name of the Company. The demand has been challenged by various owners and / or the company before appropriate forum. In case the demand is finally upheld, the company will have to pay Rs. 3.823 Millions. Of this demand, Rs. 1.530 Millions has been deposited upto 31.03.2013. Balance demand of Rs. 15.807 Millions ( Rs. 19.630 Millions less Rs. 3.823 Millions) will be paid by the concerned co-owners and the Company will have no liability on account of the same. In case of Mafatlal Chambers: a) A demand for Rs. 37.851 Millions for earlier years has been raised by Brihanmumbai Mahanagarpalika towards Property Taxes in respect of the properties owned by the Company for the respective floor. b)Pursuant to introduction of new system of capital based assessment of Property Taxes, a demand for Rs. 57.603 Millions for the period from 01.04.2010 to 31.03.2013 has been raised in respect of the properties owned by various owners for the respective floors and in respect of common areas / properties in the name of the Company. The demand has been challenged by various owners and / or the company before appropriate forum. In case the demand is finally upheld, the company will have to pay Rs. 5.203 Millions. Of this demand, Rs. 2.081 Millions has been deposited upto 31.03.2013. Balance demand of Rs. 52.400 Millions (Rs. 57.603 Millions less Rs. 5.203 Millions) will be paid by the concerned co-owners and the Company will have no liability on account of the same.	--	--
Guarantees given on behalf of Subsidiary Company – Ibiza Industries Limited. (The subsidiary company is currently under liquidation)	85.028	85.028

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULT FOR THE QUARTER AND SIX MONTHS ENDED 30^TH SEPTEMBER 2013

Particular	Three Months ended	Preceding Three Months Ended	Six months ended
	30.09.2013 (Unaudited)	30.06.2013 (Unaudited)	30.09.2013 (Unaudited)
Income from Operations
a) Net Sales / Income from Operations (Net of Excise Duty)	2741.888	2182.090	4923.978
b) Other Operating Income	45.363	42.209	87.572
Total Income from Operations (Net)	2787.251	2224.299	5011.550
Expenses
a) Cost of materials consumed	711.384	588.209	1297.593
b) Purchase of Stock in trade	1354.249	841.005	2195.254
c) Changes in Inventories of Finished Goods, Work-in-progress and Stock-in-Trade	(167.781)	(62.129)	(229.910)
d) Employee Benefits Expense	195.348	191.782	387.130
e) Depreciation and Amortisation Expense	40.200	37.622	77.822
f) power and fuel	182.927	175.296	358.225
(g) Other Expenses	446.441	371.434	817.875
Total Expenses	2762.768	2141.221	4903.989
Profit / (Loss) from Operations before Other Income, Finance Cost and Exceptional Items	24.483	83.078	107.561
Other Income	61.802	34.122	95.924
Profit / (Loss) before Finance Cost and Exceptional Items	86.285	117.200	203.485
Finance Costs	30.082	33.828	63.910
Profit / (Loss) after Finance cost but before Exceptional Items	56.203	83.372	139.575
Exceptional Items	0.477	73.101	73.578
Profit / (Loss) before Tax	56.680	156.473	213.153
Tax Expense benefit
Current Tax Expense	(8.900)	(33.000)	(41.900)
Less : MAT credit	1.800	8.200	10.000
(Short)/ Excess provision tax relating to prior years	0.000	(0.023)	(0.023)
Net current tax expenses	(7.100)	(24.823)	(31.923)
Deferred Tax	(1.500)	(1.100)	(2.600)
Net Tax (expenses) / Benefit	(8.600)	(25.923)	(34.523)
Net Profit / (Loss) after Tax	48.080	130.550	178.630
Net Profit / (Loss) for the Period	139.129	139.129	139.129
Paid Up Equity Share Capital (Face Value of the share – Rs. 10/- each)	--	--	--
Reserves excluding Revaluation Reserve as per balance sheet of previous accounting year	--	--	--
Earnings Per Share (EPS) (in Rs.)
a) Basic & b) Diluted	3.46	9.38	12.84

(Rs. In Millions)

Particulars	Three Months ended	Preceding Three Months Ended	Six months ended
	30.09.2013 (Unaudited)	30.06.2013 (Unaudited)	30.09.2013 (Unaudited)
PARTICULARS OF SHAREHOLDING
Public Shareholding
- Number of Shares	3492931	3492981	3492981
- Percentage of Shareholding	25.11%	25.11%	25.11%
Promoters and Promoter Group Shareholding
a) Pledged / Encumbered
- Number of Shares	--	--	--
- Percentage of Shares (as a % of total shareholding of promoter and promoter group)	--	--	--
- Percentage of Shares (as a % of total share Capital of the Company)	--	--	----
b) Non-Encumbered
- Number of Shares	10419955	10419955	10419955
- Percentage of Shares (as a % of total shareholding of promoter and promoter group)	100%	100%	100%
- Percentage of Shares (as a % of total share Capital of the Company)	70.84%	70.84%	70.84%

INVESTOR COMPLAINTS
	30.09.2013
Pending at the beginning of the quarter	NIL
Received during the quarter	7
disposed of during the quarter	7
Remaining unresolved at the end of the quarter	Nil)

STATEMENT OF ASSETS AND LIABILITIES

(Rs. In Millions)

SOURCES OF FUNDS	30.09.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	139.122
(b) Reserves & Surplus	3321.153
Total Shareholders’ Funds	3460.275
(3) Non-Current Liabilities
(a) long-term borrowings	448.923
(b) Deferred tax liabilities (Net)	45.100
(c) Other Long term liabilities	150.491
(d) Long term provision	51.454
Total Non-current Liabilities	695.968
(4) Current Liabilities
(a) Short term borrowings	643.176
(b) Trade payables	1667.002
(c) Other current liabilities	625.251
(d) Short-term provisions	115.682
Total Current Liabilities	3051.111
TOTAL	7207.354
II. ASSETS
(1) Non-current assets
(a) Fixed Assets	1257.418
(b) Intangible Assets	0.646
(c) Capital work in progress	398.280
(d) Intangible Assets under development	8.184
(e) Non-current Investments	486.684
(f) Long-term Loan and Advances	279.448
(g) Other Non-current assets	66.827
Total Non-Current Assets	2497.490
(2) Current assets
(a) Inventories	1218.896
(b) Trade receivables	1935.603
(c) Cash and cash equivalents	1152.192
(d) Short-term loans and advances	369.342
(e) Other current assets	33.831
Total Current Assets	4709.864
TOTAL	7207.354

NOTE:

The above results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 29' October 2013. The same have been subjected to Limited Review by the Statutory Auditors.

As per the Scheme of Amalgamation and Arrangement ("the Scheme"), Mishapar Investments Limited (Mishapar) a wholly owned subsidiary of the Company and Mafitlal Denim Limited (MDL) has been amalgamated with the Company from the appointed date of 1^st April 2012. The Scheme had been sanctioned by the Hon'ble High Court of Judicature at Bombay and the Hon'ble High Court of Gujarat at Ahmedabad vide their Orders dated 8^th April 2013 and 26^th April 2013 respectively. The said Scheme has become effective from 28" May, 2013 being the date on which all the requirements under the Companies Act, 1956 have been completed. The details are given in the Note no.30.3 of the Financial Statement for the year ended 31" March 2013.

The quarterly and the half yearly financial numbers are not comparable with the numbers of corresponding periods (other than numbers for the quarter ended 30' June 2013) as the amalgamation scheme referred to in the Note. No 3 above has been given effect to in quarter ended 31^st March 2013.

The appointment of and remuneration of Rs.28.185 Millions by erstwhile Mafatlal Denim Limited (MDL) to its managerial personnel was subject to the approval of the Central Government. MDL had filed an application for reconsideration when the default to the secured lender no longer existed. The Company on 2dm June, 2013 has received the approval from the Central Government for payment of remuneration to the above managerial personnel thus resolving the matter.

As legally advised, the Company has not recognized as income ,recovery of rent md other charges of Rs.18.847 Millions upto 30st September, 2013 (Rs.18.738 Millions upto 30st June, 201 3, Rs.18.410 Millions upto 3om September, 2012 and Rs.18.629 Millions upto 31^st March,2013), pending final resolution of the legal dispute with certain tenants/ex-tenants of a property in South Mumbai. The Civil Revision Applications filed by the ex-tenants has been admitted by the Hon'ble Bombay High Court and the ex-tenants have deposited and.123.347 Millions (amount decreed by the learned trial judge along with interest awarded by the appeal bench of the Small Causes Court) as directed by the Hon'ble High Court while granting stay on the order issued by the Appeal Bench of the Han'ble Small Causes Court. In the current quarter, the Company has withdrawn the said amount of Rs.123.347 Millions by providing undertakings as directed by the Hon'ble High Court to repay the amount, if the ex-tenants succeed in the civil revision applications which are pending for final disposals. Out of the said amount, Rs.65.558 Millions has been paid to Sulakshana Securities Limited, in whom one of the premises was vested under the Company's rehabilitation scheme which was approved by BIFR, during the pendency of the said litigation.

The auditors have qualified the non-accrual of rent recovery of expenses interest in their report for all the periods presented.

Other Exceptional Items consist of:

(Rs. In Millions)

Particulars	Quarter ended	Quarter ended	Half Year ended
	30.09.2013 (Unaudited)	30.06.2013 (Unaudited)	30.09.2013 (Unaudited)
Profit / (Loss) on sale of Fixed assets and Investment Properties including Long Term Investment.	0.477	73.101	73.578
Voluntary Retirement Scheme	0.000	0.000	0.000
Interest on deferred payment of electricity dues	0.000	0.000	0.000

Figures in brackets represent expense

The Company is primarily engaged in the business of "textiles" which, in the context of Accounting Standard (AS 17) on "Segment Reporting", constitutes a single reportable segment.

The figures for the corresponding periods have been restated, wherever necessary, to make them comparable.

FIXED ASSETS

Tangible Assets

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office equipment

· Leasehold improvements

· Railway sidings

Intangible Assets

· Computer software

Intangible assets

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.62.39
UK Pound	1	Rs.101.80
Euro	1	Rs.84.75

INFORMATION DETAILS

Information Gathered by :	HNA
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--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	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

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.