MIRA INFORM REPORT

Report Date :

23.08.2014

IDENTIFICATION DETAILS

Name :	NITIN SPINNERS LIMITED
Registered Office :	16-17 K.M. Stone, Chittor Road, Hamirgarh, Bhilwara - 311001, Rajasthan
Country :	India
Financials (as on) :	31.03.2014
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 :	Subject is in the business of manufacturing of Cotton Yarn and Knitted Fabric.
No. of Employees :	1549 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (57)

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track record. Financial position of the company seems to be decent. Trade relations are reported as fair. Business is active. Payment terms reported to be regular and as per commitment. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities BBB
Rating Explanation	Have moderate degree of safety and carry moderate credit risk.
Date	August 14, 2013

Rating Agency Name	CARE
Rating	Long term bank facilities BBB
Rating Explanation	Have moderate degree of safety and carry moderate credit risk.
Date	August 14, 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 31-03-2014.

INFORMATION DENIED

MANAGEMENT NON CO-OPERATIVE (91-1482-286110)

LOCATIONS

Registered Office / Factory 1 :	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 ipo@bigshareonline.com
Website :	http://www.nitinspinners.com
Factory 2 :	E-2/3 , Ansa Indussstrial Estate, Saki Vihar Road, Saki Naka, Andheri (East), Mumbai – 400072, Maharashtra, India
Tel. No.:	91-22-28470652, 28470653
Fax No.:	91-22-28475207

DIRECTORS

As on 321.03.2014

Name :	Mr. R. L. Nolkha
Designation :	Chairman and Managing Director
Name :	Mr. Dinesh Nolkha
Designation :	Managing Director
Name :	Mr. Bhagwan Ram
Designation :	Director
Date of Birth :	03.08.1933
Date of Appointment :	15.05.2001
Qualifications :	Graduate from University of Paris and University of Paris and Georgetown, PG Diploma in Economics and Finance IAS (Rtd.)
Name :	Mr. Y. R. Shah
Designation :	Director
Date of Birth :	31.08.1942
Date of Appointment :	24.02.2005
Qualifications :	B.E.(Text)
Name :	Mr. Nitin Nolkha
Designation :	Executive Director
Name :	Mr. S. K. Chaturvedi (w.e.f. 29.06.2013)
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 and 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 30.06.2014

Category of Shareholder	Total No. of Shares	% of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	12533827	27.35
Bodies Corporate	16700000	36.44
Sub Total	29233827	63.78
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	29233827	63.78
(B) Public Shareholding
(1) Institutions
Insurance Companies	393029	0.86
Sub Total	393029	0.86
(2) Non-Institutions
Bodies Corporate	2495170	5.44
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	8127705	17.73
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	5253669	11.46
Any Others (Specify)	330545	0.72
Clearing Members	107497	0.23
Non Resident Indians	221548	0.48
Trusts	1500	0.00
Sub Total	16207089	35.36
Total Public shareholding (B)	16600118	36.22
Total (A)+(B)	45833945	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)	45833945	0.00

BUSINESS DETAILS

Line of Business :

Subject is in the business of manufacturing of Cotton Yarn and Knitted Fabric.

PRODUCTION STATUS (As on 31.03.2014)

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

Particulars	Unit	Production / Purchase
A. Yarn
Own Manufacturing*	In Tons	21621.987
Trading	In Tons	490.115
B. Fabric	In Tons	2706.659
C. job Works and Others
Fabrics	In Tons	454.945

* Production includes 2675.591 Tons. (Previous Year 1896.224 Tons.) Transferred for captive consumption

GENERAL INFORMATION

No. of Employees :

1549 (Approximately)

Bankers :

v Oriental Bank of Commerce

v Punjab National Bank

v State Bank of India

v Indian Overseas Bank

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Term Loan from Banks	1621.674	1895.754
Taken to Other Current Liabilities being Current Maturities	(317.478)	(274.031)
Vehicle Loan From Bank	4.837	2.073
Taken to Other Current Liabilities	(1.974)	(0.584)
SHORT TERM BORROWINGS
Working Capital Loan from Banks	134.235	168.111
Total	1441.294	1791.323

NOTE:

LONG TERM BORROWINGS

1. Security

(a) Term Loans of Rs. 13385.49 Lacs 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. 2831.25 Lacs are secured by way of third 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

(b) Vehicle Loan is secured by hypothecation of the specific vehicle

2. Terms of Repayment

(a) Term loans of Rs. 91.066 millions are repayable in 9 variable quarterly instalments upto 30th June 2016, Rs. 1481.323 millions in 19 variable quarterly instalments upto 31st December 2018 and Rs. 49.285 millions in 23 equal quarterly instalments upto 31st December 2019.

(b) Vehicle loan of Rs. 1.438 millions is repayable in 26 variable monthly instalments upto 7th May 2016, Rs. 2.228 millions in 27 variable monthly instalments upto 12th June 2016 and Rs. 11.71 Lacs in 36 variable monthly instalments upto 7th March 2017.

SHORT TERM BORROWINGS

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
Associates :	Redial Trading and Investment Private Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
46000000	Equity Shares	Rs.10/- each	Rs.460.000 Millions
400000	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
45833945	Equity Shares	Rs.10/- each	Rs.458.339 Millions

a. Details of equity shares held by shareholders holding more than 5% shares:

Name of Shareholder	Number of Shares	% holding
Redial Trading and Investment Private Limited, India	16682934	36.40%
Prasham Corporate Services (India) Private Limited, India	--	--
Ratan Lal Nolkha	5515000	12.03%
Dolphin Carrier Private Limited, India	--	--

b. The reconciliation of the number of shares outstanding is set out below:

Name of Shareholder	Number of Shares
Equity Shares at the beginning of the year	45833945
Add : Shares issued during the year	--
Equity Shares at the end of the year	45833945

c. The company has not issued, any shares pursuant to contract without payment being received incash, bonus Share and has nsssot bought back any shares

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	458.339	458.339	458.339
(b) Reserves & Surplus	857.220	549.630	408.257
(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)	1315.559	1007.969	866.596
(3) Non-Current Liabilities
(a) long-term borrowings	1307.059	1623.212	1836.830
(b) Deferred tax liabilities (Net)	211.467	65.963	0.000
(c) Other long term liabilities	23.560	14.534	0.000
(d) long-term provisions	0.000	0.000	10.927
Total Non-current Liabilities (3)	1542.086	1703.709	1847.757
(4) Current Liabilities
(a) Short term borrowings	134.670	168.596	401.238
(b) Trade payables	106.993	53.982	40.608
(c) Other current liabilities	388.822	512.885	309.048
(d) Short-term provisions	51.717	10.145	7.736
Total Current Liabilities (4)	682.202	745.608	758.630
TOTAL	3539.847	3457.286	3472.983
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1912.143	2129.852	2280.889
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	211.764	0.000	33.803
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	2.422
(d) Long-term Loan and Advances	299.765	65.034	47.628
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	2423.672	2194.886	2364.742
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	706.984	818.970	771.240
(c) Trade receivables	248.931	280.397	185.015
(d) Cash and cash equivalents	0.637	2.759	0.847
(e) Short-term loans and advances	46.915	50.999	17.500
(f) Other current assets	112.708	109.275	133.639
Total Current Assets	1116.175	1262.400	1108.241
TOTAL	3539.847	3457.286	3472.983

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	4883.402	4460.536	4283.003
		Other Income	3.476	3.029	1.267
		TOTAL	4886.878	4463.565	4284.270
Less	EXPENSES
		Cost of Materials Consumed	2935.421	2495.843	2800.369
		Purchases of Stock-in-Trade	102.360	146.063	62.674
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(59.213)	(1.895)	104.282
		Employees benefits expense	246.021	199.360	164.949
		Other expenses	719.449	749.008	700.280
		TOTAL	3944.038	3588.379	3832.554
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		942.840	875.186	451.716
Less	FINANCIAL EXPENSES		174.635	273.058	208.956
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		768.205	602.128	242.760
Less/ Add	DEPRECIATION/ AMORTISATION		248.658	244.987	239.755
	PROFIT/ (LOSS) BEFORE TAX		519.547	357.141	3.005
Less	TAX		171.740	215.768	(0.026)
	PROFIT/ (LOSS) AFTER TAX		347.807	141.373	3.031
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		218.575	77.202	74.171
Less	APPROPRIATIONS
		Transfer to General Reserve	35.618	0.000	0.000
		Dividend	34.375	0.000	0.000
		Tax on Dividend	5.842	0.000	0.000
	BALANCE CARRIED TO THE B/S		490.547	218.575	77.202
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods at FOB value	3161.991	3278.700	2798.433
	TOTAL EARNINGS		3161.991	3278.700	2798.433
	IMPORTS
		Components and Spare Parts including Packing Materials	52.354	51.293	48.711
		Raw Material	138.136	225.809	4.268
		Capital Goods	24.185	48.632	18.781
	TOTAL IMPORTS		214.675	325.734	71.760
	Earnings / (Loss) Per Share (Rs.)		7.59	3.08	0.07

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	7.12	3.17	0.07
Net Profit Margin (PBT/Sales)	(%)	10.64	8.01	0.07
Return on Total Assets (PBT/Total Assets}	(%)	15.61	10.33	0.09
Return on Investment (ROI) (PBT/Networth)		0.39	0.35	0.00
Debt Equity Ratio (Total Debt/Networth)		1.10	1.78	2.58
Current Ratio (Current Asset/Current Liability)		1.64	1.69	1.46

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	458.339	458.339	458.339
Reserves & Surplus	408.257	549.630	857.220
Net worth	866.596	1007.969	1315.559
long-term borrowings	1836.830	1623.212	1307.059
Short term borrowings	401.238	168.596	134.670
Total borrowings	2238.068	1791.808	1441.729
Debt/Equity ratio	2.583	1.778	1.096

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Revenue from Operations	4283.003	4460.536	4883.402
		4.145	9.480

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Revenue from Operations	4283.003	4460.536	4883.402
Profit	3.031	141.373	347.807
	0.07%	3.17%	7.12%

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	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

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
SHORT TERM BORROWINGS
Security Deposits	0.435	0.485
Total	0.435	0.485

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10510756	30/05/2014	550,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtras - 400013, INDIA	C12884300
2	10509374	30/05/2014	750,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA	C11556859
3	10508355	16/05/2014	500,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA	C10805521
4	10508364	16/05/2014	500,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA	C10808558
5	10508534	16/05/2014	500,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA	C10941391
6	10508108	16/05/2014	525,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA	C10583870
7	10508352	16/05/2014	525,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA	C10804219
8	10508368	16/05/2014	525,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA	C10810604
9	10508359	16/05/2014	625,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA	C10806966
10	10491148	10/03/2014	1,200,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA	C03615176
11	10473519	24/06/2014 *	2,000,000,000.00	PUNJAB NATIONA BANK	BHOPAL GANJ, BHILWARA, Rajasthan - 311001, INDIA	C09754854
12	10443047	09/07/2013	3,000,000.00	Daimler Financial Services India Private Limited	Unit 202, 2nd Floor, Campus 3B,RMZ Millennia, Business Park, No.143, Dr. M.G. R. Road, Perungudi, Chennai, Tamil Nadu - 600096, INDIA	B82023581
13	10343563	24/06/2014 *	45,000,000.00	Indian Overseas Bank	1-5, AAKAR TOWER,, OLD RTO ROAD, GANDHI NAGAR, BHILWARA, Rajasthan - 311001, INDIA	C11679719
14	10342519	24/06/2014 *	45,000,000.00	PUNJAB NATIONAL BANK	BHOPAL GANJ, BHILWARA, Rajasthan - 311001, INDIA	C09756099
15	10184525	12/10/2009	215,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA	A73099848
16	10167302	15/07/2009	65,000,000.00	PUNJAB NATIONAL BANK	BHOPAL GANJ, BHILWARA, Rajasthan - 311001, INDIA	A66114034
17	10165556	12/10/2009 *	160,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA	A72522949
18	10106054	19/06/2008	220,000,000.00	3i Infotech Trusteeship Services Limited	3rd to 6th floor, International Infotech Park, Tower No.5, Vashi Railway Station Complex, Vashi, Nsavi Mumbai, Maharashtra - 400703, INDIA	A39851340
19	10074418	22/07/2008 *	350,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, PUR ROAD, BHILWARA, Rajasthan - 311001, INDIA	A42506360
20	10036397	24/06/2014 *	260,000,000.00	UCO Bank	NAGORI GARDEN, BHILWARA, Rajasthan - 311001, INDIA	C09910928
21	10009866	24/06/2014 *	50,000,000.00	BANK OF BARODA	NAGORI GARDEN, BHILWARA, Rajasthan - 311001, INDIA	C10349470
22	10006965	24/06/2014 *	500,000,000.00	State Bank of India	PALM COURT BUILDING, 6TH FLOOR, MEHRAULI ROAD, GURGAON, Haryana - 122001, INDIA	C11611357
23	10004846	24/06/2014 *	150,000,000.00	Indian Overseas Bank	1-5, AAKAR TOWER, OLD RTO ROAD, GANDHI NAGAR, BHILWARA, Rajasthan – 3110ss01, INDIA	C11677192
24	10004301	24/06/2014 *	250,000,000.00	ORIENTAL BANK OF COMMERCE	SHANTI BHAWAN, BHILWARA, Rajasthan - 311001, INDIA	C10317337
25	10003658	24/06/2014 *	400,000,000.00	PUNJAB NATIONAL BANK	BHOPAL GANJ, BHILWARA, Rajasthan - 311001, INDIA	C09801911
26	80010865	24/06/2014 *	40,000,000.00	ORIENTAL BANK OF COMMERCE	SHANTI BHAWAN, BHILWARA, Rajasthan - 311001, INDIA	C10317816
27	80019915	24/06/2014 *	60,000,000.00	IDBI Bank Limited	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	C11054327
28	80010845	24/06/2014 *	70,000,000.00	Indian Overseas Bank	1-5, AAKAR TOWER, OLD RTO ROAD, GANDHI NAGAR, BHILWARA, Rajasthan - 311001, INDIA	C11676152
29	90113571	24/06/2014 *	75,000,000.00	PUNJAB NATIONAL BANK	BHOPAL GANJ, BHILWARA, Rajasthan - 311002, INDIA	C09755513
30	80019916	24/09/2013 *	1,140,000,000.00	ORIENTAL BANK OF COMMERCE	SHANTI BHAWAN, BHILWARA, Rajasthan - 311001, INDIA	B86069655
31	90113552	19/07/2012 *	190,000,000.00	PUNJAB NATIONAL BANK	BHOPAL GANJ, BHILWARA, Rajasthan - 311001, INDIA	B45373800
32	90113286	19/07/2012 *	190,000,000.00	INDIAN OVERSEAS BANK	1-5, AAKAR TOWER, OLD RTO ROAD, GANDHI NAGAR, BHILWARA, Rajasthan - 311001, INDIA	B45411329
33	90113277	08/10/2013 *	605,000,000.00	ORIENTAL BANK OF COMMERCE	SHANTI BHAWAN, BHILWARA, Rajasthan - 311001, INDIA	B87734455

* Date of charge modification

OPERATIONAL REVIEW

This was a remarkable year for the Company as it has achieved highest ever turnover as well as profitability. During the year turnover has increased to Rs. 4883.400 millions from Rs. 4460.500 millions representing an increase of 9.48% over previous year. There is significant increase in the turnover of Knitted Fabric from Rs. 452.000 millions in the previous year to Rs. 701.500 millions during the current year registering an increase of 55.20% over the previous year. The export turnover marginally decreased from Rs. 3409.000 millions in the previous year to Rs. 332.05 Crores in the current year. The export turnover constitutes 68% of the total turnover.

Stable cotton price, consistent demand of Cotton Yarn from Domestic as well as International markets and favorable foreign exchange rates resulted in increased operating profit (EBIDTA) from Rs 875.200 millions in previous year to Rs. 942.800 millions in current year registering an increase of 7.72% over previous year. The Company has achieved Net Profit (PAT) of Rs. 347.800 millions registesring an increase of around 250% from Rs.141.400 millions in the previous year and Earning Per Share of Rs. 7.59 for current year against Rs. 3.08 in the previous year. The Board of Directors expect to repeat the same performance in the current Financial Year -2014 15

MANAGEMENT DISCUSSIONS ANDs ANALYSIS

INDUSTRY OUTLOOK

The Growth in GDP of their country during the year 2013-14 is pegged at 4.90%s as compared to the Growth rate of 4.50% in the year 2012-13 indicating that slowdown in their country has bottomed out. The Textile Sector comprising Cotton, Man-made Fibers, Jute, Sericulture & Silk Wool, Handlooms and handicrafts play a key role in the Indian economy by way of significant contribution to GDP, manufacturing output, employment generation and export earnings. The Cotton Textile sector continued to be largest sector with around 75% share of the total Indian Textile sector.

In the diverse economic and manufacturing activities of India, cotton growing, processing and trading occupy a predominant position and act as one of the strong competitive base for textile and clothing production. India is one of the largest producers and exporters of cotton and an influencing player in global cotton economy. A significant amount of cotton was being imported for spinning industry till 2004-05, a year later, India became a net exporter in cotton and holds this position till now after meeting the domestic requirement. India has occupied the 2nd slot in world’s cotton production, consumption and export. In the current season 2013-14 cotton crop is estimated at 375 lacs bales against 340 lacs bales during previous season. The Cotton Textile Industry performed well during the current year and production of Cotton Yarn in their country has increased by about 10% and Exports nearly 32%. The cotton prices remained stable during the year. Stable Cotton price, consistent demand of Cotton Yarn from Domestic as well as International Markets and favorasspble foreign exchange rates have resulted into a landmark year for the Cotton Spinning Industry and the company has also witnessed phenomenal growth in operating and cash margins.

1) CONTINGENT LIABILITIES AND COMMITMENTS

i) CONTINGENT LIABILITIES NOT PROVIDED FOR :

Particulars	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
Disputed Liabilities not acknowledged as debts
- Cenvat, Service Tax and Custom Duty	80.491	81.499
Guarantees
- Outstanding Bank Guarantees	31.559	12.959
Other money for which the company is contingently liable
- Bill Discounted with Bank	466.793	421.032

ii) Commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances) Rs. 1803.870 millions (Previous Year – Rs. 1.593 millions).

b) The company has an outstanding export obligation of appox. Rs. 113.664 millions. (Previous Year – Rs. 256.707 millions), in respect of capital goods imported at the concessional rate of duty under Export Promotion Capital Goods Scheme, which is required to be met at different dates on or before 31.03.2020.

FIXED ASSETS

œ Freehold Land

œ Buildings

œ Plant and Machinery

œ Electric Installation

œ Furniture and Fixtures

œ Office Equipment’s

œ Vehicles

UNAUDITED RESULTS FOR THE QUARTER AND ENDED ON 30^TH JUNE, 2014

(Rs. In Millions)

		Particulars	Quarter ended 30.06.2014
1	Income from Operations
	a) Net Sales/Income from Operations (net of excise duty)		1326.366
	b) Other Operating Income		0.688
	Total Income from Operations (Net)		1327.054
2	Expenses
	a)	Cost of Materials consumed	765.854
	b)	Purchase of stock in-trade	17.396
	c)	Changes in inventories of finished goods, work-in-progress and stock-in-trade	48.914
	d)	Employee benefit expenses	69.229
	e)	Depreciation and amortization expense	62.835
	f)	Power & Fuel	105.407
	g)	Other expenses	95.762
	Total Expenses		1165.397
3		Profit /(Loss) from operations before other income, finance costs and exceptional items (1-2)	1.657
4	Other Income		7.670
5		Profit /(Loss) from ordinary activities before finance costs and exceptional items (3+4)	169.327
6	Finance Costs		49.616
7		Profit /(Loss) from ordinary activities after finance costs but before exceptional items (5-6)	119.711
8	Exceptional Items		--
9	Profit /(Loss) from ordinary activities before tax		119.711
10	Tax Expense
	- Current Tax		--
	- Deferred Tax		32.046
11	Net Profit /(Loss) from ordinary activities after tax (9-10)		87.665
12	Extraordinary items (net of tax expense)		--
13	Net Profit /(Loss) for the period (11-12)		87.665
14	Paid up equity share capital (Eq. shares of Rs.10/- each)		458.339
15	Reserve excluding revaluation reserves
16		Earnings per share (before/after extraordinary items) of Rs.10/- each
		Basic	1.91
		Diluted	1.91
A		PARTICULARS OF SHAREHOLDING
1		Public Shareholding
		- No. of Shares	16600118
		- Percentage of Shareholding	36.22%
2		Promoters and promoter group shareholding
		a) Pledged/Encumbered
		- Number of shares	--
		- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group)	--
		- Percentage of shares (as a % of the total share capital of the Company)	--
		b) Non- encumbered
		- Number of shares	29233827
		- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group)	100.00%
		- Percentage of shares (as a % of the total share capital of the Company)	6378%

1. The expansion Project of Spinning and Knitting facilities involving capital expenditure of RS. 28.600 million is being implemented as per schedule.

2. The Provision of Current Tax is net of MAT credit entitlement of RS. 25.092 millions.

3. No investor’s complaint was pending at the beginning and end of the quarter and no complaint was received during the quarter.

4. The company business activities falls within a single business segment (Textile), in terms of accounting standard – 17 of ICAI.

5. The figures of the quarter ended 31st March, 2014 are the balancing figures between the audited figures in respect of full financial year ended on 31st March, 2014 and unaudited published figures upto the quarter ended 31st December, 2013. The figures of previous year/quarter have been regrouped/rearranged, wherever required.

6. The above financial results have been approved by the audit committee and board of Directors at their meeting held on 29th July, 2014.

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.60.44
UK Pound	1	Rs.100.24
Euro	1	Rs.80.35

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	RAS
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION		s
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		51

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.