MIRA INFORM REPORT

Report Date :

29.12.2014

IDENTIFICATION DETAILS

Name :	NANDAN DENIM LIMITED
Registered Office :	Survey No. 198/1, 203/2, Saijpur-Gopalpur, Pirana Road, Piplej, Ahmedabad – 382405, Gujarat
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	09.08.1994
Com. Reg. No.:	04-022719
Capital Investment / Paid-up Capital :	Rs. 455.491 Millions
CIN No.: [Company Identification No.]	L51909GJ1994PLC022719
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing, Trading and Export of Textile Products.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The rating reflects company’s healthy financial risk profile marked by sound liquidity position and fair profitability levels of the company. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings at usual trade terms and condition.

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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CIRSIL
Rating	Long Term Rating = BBB+
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	30.09.2014

Rating Agency Name	CIRSIL
Rating	Short Term Rating = A2
Rating Explanation	Strong degree of safety and low credit risk
Date	30.09.2014

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 BY

Management Non-cooperative (Tel. No.: 91-79-26734662)

LOCATIONS

Registered Office / Plant :	Survey No. 198/1, 203/2, Saijpur-Gopalpur, Pirana Road, Piplej, Ahmedabad – 382405, Gujarat, India
Tel. No.:	Not Available
Mobile No.:	91-9879200199
Fax No.:	Not Available
E-Mail :	purvee@chiripalgroup.com
Corporate Office :	Chiripal House”, Shivranjani Cross Roads,Satellite, Ahmedabad – 380015, Gujarat, India
Tel. No.:	91-79-26734660 / 2 / 3
Fax No.:	91-79-26768656
E-Mail :	cs.ndl@chiripalgroup.com

DIRECTORS

As on 31.03.2014

Name :	Mr. Vedprakash D. Chiripal
Designation :	Chairman
Name :	Mr. Brijmohan D. Chiripal
Designation :	Managing Director
Name :	Mr. T.S. Bhattacharya
Designation :	Director
Name :	Mr. Ambalal C. Patel
Designation :	Director

KEY EXECUTIVES

Name :	Ms. Purvee D. Roy
Designation :	Company Secretary
Name :	Mr. Deepak J. Chiripal
Designation :	Chief Executive Officer

SHAREHOLDING PATTERN

As on 30.09.2014

Category of Shareholder	Total No. of Shares	As a %
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	5534302	12.15
Bodies Corporate	21232951	46.62
Sub Total	26767253	58.77
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	26767253	58.77
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	1240	0.00
Central Government / State Government(s)	5500	0.01
Foreign Institutional Investors	1656814	3.64
Sub Total	1663554	3.65
(2) Non-Institutions
Bodies Corporate	5426144	11.91
Individuals
Individual shareholders holding nominal share capital up to Rs. 1 lakh	7398830	16.24
Individual shareholders holding nominal share capital in excess of Rs. 1 lakh	2222214	4.88
Any Others (Specify)	2071061	4.55
Non Resident Indians	2071061	4.55
Sub Total	17118249	37.58
Total Public shareholding (B)	18781803	41.23
Total (A)+(B)	45549056	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)	45549056	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing, Trading and Export of Textile Products.
Products :	Not Divulged
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	Not Divulged

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

Information declined by the managment

Bankers :

· State Bank of India

· State Bank of Hyderabad

· Syndicate Bank

· Oriental Bank of Commerce

· State Bank of Travancore

· United Bank of India

· Karur Vysya Bank

· Bank of Maharashtra

· UCO Bank

· Dena Bank

· Laxmi Vilas Bank

· Central Bank of India

· The Saraswat Co-Operative Bank Limited

· Union Bank of India

Facilities :

SECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWINGS
Term Loan - From Banks * [Indian rupee loan from Banks)	1681.993	1659.207
Buyers Credit Arrangements **	1036.944	738.150
Corporate Loan From Bank ***	0.000	249.857
Vehicle Loans *****	2.258	3.648
SHORT TERM BORROWINGS
Working Capital Loan from Banks@	1078.315	1003.890
Total	3799.510	3654.752

Notes :

LONG TERM BORROWINGS

Security:

*,** Term Loans & Buyers Credit arrangements under Consortium finance are secured by first charge on the entire Fixed

Assets of the company both present and future, second charge on Book Debts, Stock and other Current Assets of the Company and also further guaranted by personal guarantee of promoter directors.

*** Corporate Loan is secured by subservient charge on fixed and current assets of the company and also by way of pledge of equity shares of the company belonging to directors and personal guarantee of promoter directors.

**** Vehicle Loans are secured by Hypothication of Vehicles.

Interest:

* Term Loans carry an interest rate which shall be State Bank of India rate or the base rate of the respective rupee lender plus the spread,which ever is higher, payable on monthly basis.

** Buyers Credit arrangements for a period upto 180 days carry an interest rate ranging between in case of 6ML Libor+48 basis points to 6ML Libor+200 basis points.

*** Corporate Loan carry an interest rate 13.50 % p. a. payable on monthly basis.

**** Borrowing from related party do not carry any Interest.

***** Vehicle Loans carry an interest rate ranging between 10.38% to 12.96% p.a.

Repayment:

* Term Loans (including Buyer’s Credit arrangements) are repayable in Quarterly installments as follows:-

(Rs. In Millions)

Particulars	Upto 1 year	2 to 4 Years	5 to 7 years	More than 8 years
Term Loan Repayments	381.312	132.994	917.374	480.569

** Buyers Credit arrangements are available for 180 days/360 Days with roll over option upto 3 years from date of sanction and on the completion of the same, it will be converted into Term Loans.

*** Corporate Loans is repayable in Monthly installments as follows:-

(Rs. In Millions)

Particulars	Upto 1 year	2 to 4 Years	5 to 7 years
Corporate Loan Repayment	249.082	Nil	Nil

**** Borrowing from related parties to be repaid of F.Y. 2015-16.

***** Vehicle Loans are repayable in following schedule in monthly installments as follows:-

Particulars	Upto 1 year	2 to 4 Years	5 to 7 years
Vehicle Loans Repayments	1.243	2.258l	Nil

SHORT TERM BORROWINGS

Security :

@ Working Capital loans under consortium finance are secured by first charge on Book Debts, Stocks and other Current Assets and second charge on all the Fixed Assets both present and future of the Company and also further guaranted by some of the Directors.

Auditors :
Name :	J.T. Shah and Company Chartered Accountants
Address :	201/202, Lalita Complex, Nr. Mithakhali Cross Roads, Navrangpura, Ahmedabad - 380 009, Gujarat, India
Tel. No.:	91-79-26444420 / 30 / 40
Fax No.:	91-79-26560440
E-Mail :	info@jtshahco.com
Memberships :	Not Available
Collaborators :	Not Available
Related Parties with whom transactions have taken place during the year :	· Shanti Exports Private Limited · Chiripal Industries Limited · Shanti Education Initiatives Limited. · Nandan Chiripal Energy Corporation LLP · Chiripal Infrastructure Limited · CIL Nova Petrochemicals Limited · Chiripal Exim LLP · Nova Textiles Private Limited. (Formerly Nandan Industries Private Limited.) · Chiripal Poly Films Limited · Chiripal Charitable Trust · Chiripal Lifestyle Limited · Vishal Fabrics Limited · Devkinandan Corporation LLP

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.10/- each	Rs. 500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
45549056	Equity Shares	Rs.10/- each	Rs. 455.491 Millions

Refer Note Number 37 for details of basic and diluted shares

The company has only one class of shares referred to as equity shares having face value of Rs.10/-. Each holder of one share is entitled to one vote per share.

During the year ended on 31st March, 2014, the Company has recommended Dividend of Rs. 0.60/- (P.Y. Rs. 1.20/-) per share as distributions to Equity Share holders. An interim dividend of Rs. 0.60/- per share was declared at the meeting of the Board of Directors held on 4th February, 2014 and the same has been paid (P.Y. Rs. Nil).

The Company declares and pays dividends in Indian Rupees. The Final dividend proposed by the Board of Director is subject to the approval of shareholders in ensuing Annual General Meeting.

No Shares has been reserved for issue under options or contracts/commitments for the shares/disinvestment.

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 the shareholder.

The details of shareholders holding more than 5% shares as at 31/03/2014 and 31/03/2013 is set out below.

Name of Shareholder	As at 31/03/2014
	No. of Shares	% held
Chiripal Industries Limited	11844270	26.00%
Chiripal Exim LLP	7008979	15.39%
Brijmohan D. Chiripal	2780000	6.10%

The Reconciliation of the number of shares outstanding and the amount of share capital as at 31/03/2014 & 31/03/2013

is set out below

Name of Shareholder	As at 31/03/2014
	No. of Shares	Amount (Rs. In Millions)
Shares at the beginning of Face Value of Rs. 10	45549056	455.491
Addition in Number Equity Shares of Rs.10	Nil	Nil
Deduction in Number of Equity Shares of Rs.10	Nil	Nil
Shares at the end of Face Value of Rs. 10	45549056	455.491

Aggregate No.of 151830188 Shares of Face Value of Rs.1 were (Now reduced to 15183019 Shares of Rs.10) issued in the year 2006-07 as Bonus.

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	455.491	455.491	455.491
(b) Reserves & Surplus	1709.571	1380.421	1133.837
(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)	2165.062	1835.912	1589.328
(3) Non-Current Liabilities
(a) long-term borrowings	2807.045	2650.862	1869.067
(b) Deferred tax liabilities (Net)	215.708	175.167	202.713
(c) Other long term liabilities	0.000	0.242	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	3022.753	2826.271	2071.780
(4) Current Liabilities
(a) Short term borrowings	1078.315	1003.890	672.687
(b) Trade payables	576.354	458.043	344.735
(c) Other current liabilities	1009.023	585.898	518.340
(d) Short-term provisions	65.523	64.367	62.828
Total Current Liabilities (4)	2729.215	2112.198	1598.590
TOTAL	7917.030	6774.381	5259.698
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	4521.469	3408.172	3007.205
(ii) Intangible Assets	2.015	3.772	6.561
(iii) Capital work-in-progress	0.000	540.615	46.678
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	41.636	3.676	2.778
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	5.830	144.123	149.073
(e) Other Non-current assets	117.453	30.150	46.285
Total Non-Current Assets	4688.403	4130.508	3258.580
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1385.042	1197.609	984.155
(c) Trade receivables	1214.164	911.750	694.740
(d) Cash and cash equivalents	260.727	199.281	155.015
(e) Short-term loans and advances	368.694	335.233	167.208
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	3228.627	2643.873	2001.118
TOTAL	7917.030	6774.381	5259.698

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	8937.520	7031.208	5738.387
		Other Income	39.893	15.265	5.424
		TOTAL (A)	8977.413	7046.473	5743.811
Less	EXPENSES
		Cost of Materials Consumed	4776.442	4634.349	3440.978
		Purchases of Stock-in-Trade	1593.852	620.370	578.740
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(121.746)	(375.856)	70.566
		Employees benefits expense	310.399	254.425	192.261
		Other expenses	1051.793	828.788	629.976
		Exceptional Items	0.000	0.000	(42.751)
		TOTAL (B)	7610.740	5962.076	4869.770
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1366.673	1084.397	874.041
Less	FINANCIAL EXPENSES (D)		320.305	317.627	278.419
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1046.368	766.770	595.622
Less/ Add	DEPRECIATION/ AMORTISATION (F)		497.271	409.174	332.589
	PROFIT BEFORE TAX (E-F) (G)		549.097	357.596	263.033
Less	TAX (H)		155.999	47.064	75.100
	PROFIT AFTER TAX (G-H) (I)		393.098	310.532	187.933
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		310.500	1.879	128.454
Less	APPROPRIATIONS
		Interim Dividend	27.300	0.000	0.000
		Proposed Final Dividend (12% i.e.Rs. 1.20/- per share)	27.300	54.700	45.500
		Corporate Dividend Tax (including cess and surcharge)	9.300	9.300	7.400
		General Reserve	53.300	43.300	4.700
	BALANCE CARRIED TO THE B/S		393.100	310.500	57.600
					1.879
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	720.869	773.109	552.108
	TOTAL EARNINGS		720.869	773.109	552.108
	IMPORTS
		Raw Materials	417.323	144.455	98.588
		Trading Goods	164.373	0.000	39.001
		Stores & Spares	17.361	1.326	18.248
		Capital Goods	342.083	604.749	244.046
	TOTAL IMPORTS		941.140	750.530	399.883
	Earnings Per Share (Rs.)		8.63	6.82	4.13

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	4.40	4.42	3.28
Operating Profit Margin (PBIDT/Sales)	(%)	15.29	15.42	15.23
Return on Total Assets (PBT/Total Assets}	(%)	6.97	5.74	5.05
Return on Investment (ROI) (PBT/Networth)		0.25	0.19	0.17
Debt Equity Ratio (Total Debt /Networth)		1.79	1.99	1.60
Current Ratio (Current Asset/Current Liability)		1.18	1.25	1.25

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	455.491	455.491	455.491
Reserves & Surplus	1133.837	1380.421	1709.571
Net worth	1589.328	1835.912	2165.062
long-term borrowings	1869.067	2650.862	2807.045
Short term borrowings	672.687	1003.890	1078.315
Total borrowings	2541.754	3654.752	3885.360
Debt/Equity ratio	1.599	1.991	1.795

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)
Sales	5738.387	7031.208	8937.520
		22.529	27.112

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	5738.387	7031.208	8937.520
Profit	187.933	310.532	393.098
	3.28%	4.42%	4.40%

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

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWINGS
Borrowing from related parties	85.850	0.000
Total	85.850	0.000

PERFORMANCE:

For the financial year ended March 31, 2014, the Company has recorded a good revenue and margin performance.

During the year the Company has achieved a turnover of Rs. 8937.500 Millions as against Rs. 7031.200 Millions for the previous financial year registering a rise of 27%. The Profit Before Tax (after interest and depreciation charges) during the year was Rs. 5491.000 Millions as compared to previous years figure of Rs. 357.600 Millions. The Net Profit during the year 2013-14 was Rs. 393.100 Millions as compared to previous year figure of Rs. 310.500 Millions which shows the increase of 27%. The Company is implementing the expansion projects by increasing its production capacity continuously in order to grab the increase in demand for the denim fabrics in the domestic and international market and thereby increasing its volume and activities in its field. Further the Company has targeted to achieve high volume in the terms of quantity and value and also adding the capacity to improve its performance and thereby its share in the market. The Company expects to achieve very excellent performance during the current year.

MANAGEMENT DISCUSSION AND ANALYSIS

OVERVIEW OF THE ECONOMY

The last financial year witnessed the impact of the corrective measures initiated at international economies to bring back the respective economies to their normal situation. The signals, as we read, are indicating a gradual recovery but for the political instability that has been caused in certain parts of the Middle-East Asia having cascading effect across the economies. The US economy has sent some very strong signals to re-establish US Dollar as undisputed leader of international monetary transactions. The most happening economy of China has shown some fatigue whereas other Asian economies are breathing at ease to their recovery route.

Under the challenging economic scenario, the Indian economy went for the process of electing leader of democratic set-up. The possible change over in the electoral process coupled with hesitant in-take by the international economies led to a lower than expected growth of GDP at sub-5%. With commodity prices staying at high levels and food inflation recording new higher levels, to deter the consumer sentiments for potential buoyancy, the manufacturing corporate entities have remained under pressure. The ease expected from the monetary policy has been staggered and no immediate boosting measures worth its impact were launched that could provide impetus to the growth of the national economy.

INDIAN TEXTILE INDUSTRY

Indian textiles industry with its contribution of 14% to industrial production, 16% to total product exports and being the largest generator of direct and indirect employment remains a sector with huge potential upside. In fact, the country is the second biggest textiles manufacturer in the world.

During 2013-14, Indian textiles and clothing exports increased by 14% over the previous year. Textile Upgradation Funds Scheme (TUFS) launched by the Government of India was competitively complemented by select State Governments to encourage value addition and growth. The effect of such State policies would be visible in near future where one can expect larger textile cluster formation across the states.

The Indian textile industry derives its strength in the international arena with specialization in cotton based products. Internationally, textile industry is significantly centred for the man-made fibre products that has its own weaknesses. Cotton has been placed as a mark of comfort, hygiene and an elite class product. With the second largest production of cotton, continuous support through MSP mechanism to further enhance production of cotton in India, the Indian textile industry would continue to cement its position in international textile trade.

The growing young middle-class population is a source of great potential and provides immense opportunities to spur growth in the industry going forward. Cotton, emerging as a trendy wear and multiple applications in daily life, provides the requisite impetus to the domestic industry.

INDIAN DENIM INDUSTRY

Acceptance of denim as a fabric has registered perhaps the highest growth over the years in Indian textile scenario. While metro cities have led the growth in the past, with the larger potential penetration in tier-II and tier-III towns, the growth is expected to explode. The market is estimated to grow at CAGR above 15% over the base figure of USD 1.20 billion in 2011 till 2015.

While denim story started elsewhere in the world as workwear, it started as a fashion statement of youth in India. It reflected the fashion statement, style quotient and comfort wear anywhere for the youth. With more than 70% of Indian population aging around 26 years and the median age remaining under 30 years even after 10 years, huge potential exist for denim, a fabric with the target Indian age bracket of 14-40 years.

Current share of male segment within denim wear is almost 75-80% with the female gender catching up faster than the growth registered in the male segment. The young generation, either gender, has accepted denim as “normal” wear rather than a “functional” wear.

Current domestic market is dominated by metro cities that account for almost two-third of consumption while having got less than 10% of national population. With ever expanding retail network of distribution and higher per capita income at disposal of the tier-II and tier-III towns, the denim availability would register requisite improvement leading to higher penetration. Multiple price-point strategy of branded jeans is further fueling the growth. With affordable availability of better fabrics to erstwhile deprive 90% of the Indian population, the segment is bound to register phenomenal growth.

The Indian denim apparel market has grown from Rs.72 bn in FY2011 to Rs.108 bn in FY2013 and is expected to expand to Rs.132 bn in FY2017. The Indian denim apparel market has been growing at a CAGR of 14%-15% which has fast outpaced the global denim apparel market growing at a CAGR of 3%-5%. The domestic denim apparel market has witnessed faster growth visà- vis export in terms of volume over a period of five years FY2009-FY2013.

In addition, India is the fourth largest exporter of denim fabrics in the world after China, Pakistan and Turkey. World trade in denim fabric averaged 670,000 tonnes over the past one decade, while in value terms, it fluctuated between $3 bn and $3.5 bn. India accounts for 5% of this trade. Of the total denim fabric produced in India, about 25%-30% (~200 MMPA) is exported. In recent times, fabrics exported from China have become costlier than those from India owing to multiple reasons including the Cotton Policy and Yuan disparity apart from the ever rising cost of power and manpower.

Owing to these factors, denim fabric manufactured in China costs $2.6-$2.65/metre compared with ~$2.5/metre in India, making India a more lucrative destination for international buyers. Geopolitical instability of Pakistan, another major denim fabric exporter, has also worked in India’s favour. Additionally, the emergence of Bangladesh, which imports bulk of its denim fabric from India, as a favoured destination for RMG manufacturing has boosted India’s exports. Owing to these factors, India’s share in the world trade of denim fabric is expected to improve, benefitting domestic players.

COTTON

Cotton is the key raw material used for manufacturing denim fabric. It is a seasonal commodity and production is heavily dependent on monsoon. India, under a normal monsoon condition remains a major source of cotton to the national consumers as well as International market. With production of cotton having stabilized around 37-38 million bales and domestic consumption to the tune of 30 million bales, the country is prepared to take advantage of any volatility in the commodity market. Any volatility in cotton market impacts the yarn manufacturers the most whereas the value added manufacturers are reasonably hedged due to the market conditions, i.e. non-commoditised product.

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10522640	03/09/2014	250,000,000.00	KARNATAKA BANK LIMITED	KANKANADY, MANGALORE, KARNATAKA - 575002, INDIA	C23228661
2	10503676	22/05/2014	250,000,000.00	LAKSHMI VILAS BANK LIMITED	1ST FLOOR, BLUE STAR COMPLEX, OPP. RAJIV GANDHI  UNDERBRIDGE, NAVRANGPURA, AHMEDABAD, GUJARAT - 380 014, INDIA	C07004112
3	10493756	29/03/2014	200,000,000.00	DENA BANK	2ND FLOOR, DENA LAXMI BUILDING, ASHRAM ROAD, AHME  DABAD, GUJARAT - 380008, INDIA	C04370664
4	10382173	28/05/2013 *	450,000,000.00	UNITED BANK OF INDIA	AHMEDABAD BRANCH, UNITED BANK OF INDIA BUILDING,  LAL DARWAJA, AHMEDABAD, GUJARAT - 380001, INDIA	B77660694
5	10379608	28/08/2012	798,000,000.00	UNION BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, NEAR GUJARAT VIDYAPEET  H, ASHRAM ROAD, AHMEDABAD, GUJARAT - 380014, INDIA	B59333054
6	10355796	23/04/2012	250,000,000.00	STATE BANK OF BIKANER AND JAIPUR	103, ABHISHREE COMPLEX, OPP. STAR BAZAR, SATELLIT  E ROAD, AHMEDABAD, GUJARAT - 380015, INDIA	B39636790
7	10356070	23/04/2012	250,000,000.00	STATE BANK OF BIKANER AND JAIPUR	103, ABHISHREE COMPLEX, OPP. STAR BAZAR, SATELLIT  E ROAD, AHMEDABAD, GUJARAT - 380015, INDIA	B39733365
8	10344273	21/05/2013 *	499,000,000.00	THE SARASWAT CO-OPERATIVE BANK LIMITED	SHOP NO. 16,GROUND FLOOR,SHANGRILA ARCADE, PRALH  ADNAGAR ROAD,NEAR SHYAMAL CROSS ROAD, AHMEDABAD,  GUJARAT - 380015, INDIA	B77487148
9	10327696	17/12/2011	440,000,000.00	CENTRAL BANK OF INDIA	MID CORPORATE FINANCE BRANCH, LALDARWAJA, AHMEDA  BAD, GUJARAT - 380001, INDIA	B29262326
10	10076671	26/10/2007	50,000,000.00	INDUSIND BANK LIMITED.	2401 GEN THIMMAYYAROAD CANTONMENT, PUNE, MAHARASHTRA - 411001, INDIA	A27422294
11	10024185	18/10/2006	40,000,000.00	SYNDICATE BANK	NAVRANGPURA, AHMEDABAD, GUJARAT - 380009, INDIA	A06017990
12	10024128	18/10/2006	92,600,000.00	SYNDICATE BANK	NAVRANGPURA BRANCH, AHMEDABAD, GUJARAT - 380009, INDIA	A06018238
13	10022083	22/06/2013 *	4,932,600,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNT GROUP BRANCH, 58, SHRIMALI SOCI  ETY, NAVRANGPURA, AHMEDABAD, GUJARAT - 380009, INDIA	B80398878
14	90100069	05/07/2005	34,500,000.00	UCO BANK	ASHRAM ROAD BRANCH, AHEMADABAD, GUJARAT, INDIA	-
15	90102392	11/08/2004	124,300,000.00	ORIENTAL BANK OF COMMERCE	ASHRAM ROAD, AHMEDABAD, GUJARAT, INDIA	-
16	90099828	27/06/2014 *	1,799,500,000.00	PNB INVESTMENT SERVICES LIMITED	CIRCLE OFFICE, 6TH FLOOR, GUJARAT BHAVAN, NEAR M.  J. LIBRARY, ASHRAM ROAD, AHMEDABAD, GUJARAT - 380006, INDIA	C12782504
17	90100998	27/06/2014 *	6,101,600,000.00	PNB INVESTMENT SERVICES LIMITED	CIRCLE OFFICE, 6TH FLOOR, GUJARAT BHAVAN, NEAR M.  J. LIBRARY, ASHRAM ROAD, AHMEDABAD, GUJARAT - 380006, INDIA	C11383536
18	90099782	15/01/2007 *	689,500,000.00	STATE BANK OF INDIA	CORPORATE FINANCE BRANCH, 58, SHRIMALI SOCIETY, NAVRANGPURA, AHMEDABAD, GUJARAT - 380009, INDIA	-
19	90099677	14/07/2003	42,707,000.00	UCO BANK	INDUSTRIAL FINANCE BRANCH; UCO BHAVAN, ASHRAM ROAD, AHEMADABAD, GUJARAT - 380009, INDIA	-
20	90098940	26/09/2003 *	4,500,000.00	UCO BANK	INDUSTRIAL FINANCE BRANCH, UCO BHAVAN. NEAR SANYA  S ASHRAM. ASHRAM ROAD, AHEMADABAD, GUJARAT, INDIA	-

* Date of charge modification

STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30TH SEPTEMBER, 2014

Standalone statement of profit and loss

(Rs. In Millions)

Sr. No	Particulars		Standalone
			Quarter Ended		Six Month Ended
			30.09.2014	30.06.2014	30.09.2014
			Unaudited	Unaudited	Unaudited
1	Income From Operations
	a. Net Sales/ Income from Operations (Net of Excise Duty)		2769.420	2636.884	5406.304
	b. Other Operating Income		0.000	0.000	0.000
	Total Income from Operations (Net)		2769.420	2636.884	5406.304
2	Expenditure
	a. Cost of material Consumed		2053.214	1884.266	3937.480
	b. Purchase of Stock-in trade		34.651	38.208	72.859
	c. Changes in inventory of finished Goods, work- in-progress and Stock-in-trade		(193.790)	(90.532)	(284.322)
	d. Employees Benefit Expenses		107.788	87.282	195.070
	e. Depreciation and Amortisation Expenses		152.806	152.256	305.062
	f. Other expenses		327.844	314.784	642.628
	Total Expenses		2482.514	2386.264	4868.777
3	Profit from Operations before Other Income, Interest and Exceptional Items		286.907	250.620	537.527
4	Other Income		5.311	8.442	13.753
5	Profit from ordinary activities before finance cost & exceptional items		292.218	259.062	551.280
6	Finance Costs		103.761	99.352	203.114
7	Profit from ordinary activities after finance costs & exceptional items		188.456	159.710	348.166
8	Exceptional items		0.000	0.000	0.000
9	Profit from ordinary activities before tax		188.456	159.710	348.166
10	Tax Expense
	- Income Tax		51.038	33.787	84.825
	- Deferred Tax		17.836	11.198	29.034
11	Net Profit from ordinary activity after tax		119.582	114.725	234.308
12	Extraordinary Items		0.000	0.000	0.000
13	Net Profit After Tax		119.582	114.725	234.308
14	Paid-up equity share capital (face value of Rs.10 per share)		455.491	455.491	455.491
15	Reserves excluding Revaluation Reserve as per balance sheet of previous accounting Year		125.663	1818.216	1943.879
16	Earning Per Share (of Rs.10 each) (not annualized)
	Basic EPS		2.63	2.52	5.14
	Diluted EPS		2.63	2.52	5.14
A		PARTICULARS OF SHAREHOLDING
17		Public Shareholding
		- No. of shares	18781803	18983110	18781803
		- Percentage of shareholding	41.23%	41.68%	41.23%
18		Promoter & Promoter Group Shareholding
		a) Pledged/Encumbered
		- No. of shares	19490000	19490000	19490000
		- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group)	72.81%	73.36%	72.81%
		- Percentage of shareholding (as a % of the total share capital of the company)	42.79%	42.79%	42.79%
		b) Non-encumbered
		- No. of shares	7277253	7075946	7277253
		- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group)	27.19%	26.64%	27.19%
		- Percentage of shareholding (as a % of the total share capital of the company)	15.98%	15.53%	15.98%

	Particulars	Quarter ended 30.09.2014
B	Investor Complaints
	Pending at the beginning of the quarter	Nil
	Received during the quarter	11
	Disposed off during the quarter	11
	Remaining unresolved at the end of the quarter	Nil

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. 63.63
UK Pound	1	Rs. 98.97
Euro	1	Rs. 77.74

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	KAR
Report Prepared by :	ASH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.