MIRA INFORM REPORT

Report Date :

02.07.2014

IDENTIFICATION DETAILS

Name :	NEO CORP INTERNATIONAL LIMITED (w.e.f. 29.01.2008)
Formerly Known As :	NEO SACK LIMITED
Registered Office :	220, Mahavir Industrial Estate, Opposite Mahakali Caves Road, Andheri (East), Mumbai – 400 093, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	15.02.1985
Com. Reg. No.:	11-223220
Capital Investment / Paid-up Capital :	Rs.380.222 Millions
CIN No.: [Company Identification No.]	L24132MH1985PLC223220
TAN No.: [Tax Deduction & Collection Account No.]	BPLN00154A
PAN No.: [Permanent Account No.]	AAACN6513A
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in manufacture of technical textiles.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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 a well-established and reputed company having satisfactory track record. Financial position of the company seems to be decent. Trade relations are reported as fair. Business is active. Payment terms are reported to be usually correct and as per commitments. 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.

INDIAN ECONOMIC OVERVIEW

N E W S

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

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	31.03.2014

Rating Agency Name	CARE
Rating	Short Term Bank Facilities = A3+
Rating Explanation	Have moderate degree of safety and carry higher credit risk
Date	31.03.2014

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 31-03-2012.

INFORMATION DECLINED

Management Non-Cooperative (91-7292-420441)

LOCATIONS

Registered/ Regional Marketing Office 1 :	220, Mahavir Industrial Estate, Opposite Mahakali Caves Road, Andheri (East), Mumbai – 400 093, Maharashtra, India
Tel. No.:	91-22-26879510
Mobile No.:	91-9810745728 (Mr. Rajat)
Fax No.:	Not Available
E-Mail :	neocorpho@hotmail.com bom@neocorp.co.in investor_relations@neocorp.co.in
Website :	http://www.neocorp.co.in
Location :	Owned
Corporate Office :	‘Trivedi Chambers’ 2, Maharani Road, Indore – 452 007, Madhya Pradesh, India
Tel. No.:	91-731-4211900/ 01
Fax No.:	91-731-4211944
Email :	indore@neocorp.co.in
Factory :	Sector 1, Plot No.62/63/64-A, Industrial Area, Pithampur – 454 775, Madhya Pradesh, India
Tel. No.:	91-7292-410400 (2 Lines)
Fax No.:	91-7292-420499
Email :	contact@neocorp.co.in
Geotech Worldwide (A Division of NCIL) :	Plot# A-12 and A-13 SEZ II Sector 3, (Apparel and Pharma Park) Pithampur, District Dhar – 454 775, Madhya Pradesh, India
Techtextil (100% EOU) (A Division of NCIL) :	Plot # 64-A, Industrial Area Sector 1, Pithampur, District Dhar – 454 775 Madhya Pradesh, India
Branch Office :	Located at: v Ahmedabad v Kolkata v New Delhi v Patna
Regional Marketing Office :	Also located at: v Delhi v Kolkata v Mumbai v Ahmedabad v Patna v Nagpur v Mangalore
International Office :	Located at: v United Kingdom v United States of America v China

DIRECTORS

As on 31.03.2013

Name :	Mr. Sunil Kumar Trivedi
Designation :	Chairman Cum Whole Time Director
Name :	Mr. Utkarsh S, Trivedi
Designation :	Executive Director
Name :	Mr. Pradhuman Sharma
Designation :	Whole Time Director
Name :	Mr. Ladharam Patel
Designation :	Independent Director
Name :	Ms. Shobha Dube
Designation :	Independent Director
Name :	Mr. Shrawan Kumar Patodi
Designation :	Independent Director
Name :	Mr. Rolland Coderre
Designation :	Independent Director

KEY EXECUTIVES

Name :	Ms. Swati Gangrade
Designation :	Company Secretary
Name :	Ms. Vaishali Jain
Designation :	Asst. CS and Compliance Officer
BOARD COMMITMENTS
Audit Committee:	Mr. Shrawan Kumar Patodi (Chairman) Ms. Swati Gangrade (Secretary) Mr. Ladhram Patel Ms. Shobha Dube
Remuneration Committee:	Mr. Shrawan Kumar Patodi (Chairman) Ms. Swati Gangrade (Secretary) Mr. Ladhram Patel Ms. Shobha Dube
Shareholders Grievance Committee:	Mr. Shrawan Kumar Patodi (Chairman) Ms. Swati Gangrade (Secretary) Mr. Ladhram Patel Ms. Shobha Dube*

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2014

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	6046212	18.27
Bodies Corporate	2423573	7.32
Sub Total	8469785	25.59
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	8469785	25.59
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	5600	0.02
Financial Institutions / Banks	200	0.00
Foreign Institutional Investors	338134	1.02
Sub Total	343934	1.04
(2) Non-Institutions
Bodies Corporate	10767702	32.53
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	4760645	14.38
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	7944861	24.01
Any Others (Specify)	808991	2.44
NRIs/OCBs	616968	1.86
Clearing Members	192023	0.58
Sub Total	24282199	73.37
Total Public shareholding (B)	24626133	74.41
Total (A)+(B)	33095918	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	4926280	0.00
Sub Total	4926280	0.00
Total (A)+(B)+(C)	38022198	0.00
Total (A)+(B)	19522198	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	--	0.00
(2) Public	18500000	0.00
Sub Total	18500000	0.00
Total (A)+(B)+(C)	38022198	100.00

Shareholding belonging to the category "Promoter and Promoter Group"

Sl.No.	Name of the Shareholder	Details of Shares held		Encumbered shares (*)			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)	No	As a percentage	As a % of grand total (A)+(B)+(C) of sub-clause (I)(a)
1	Sunil Kumar Trivedi	14,93,576	3.93	1055793	70.69	2.78	3.93
2	Panam Packers Private Limited	12,46,497	3.28	975900	78.29	2.57	3.28
3	Sanjay Trivedi	10,51,000	2.76	321000	30.54	0.84	2.76
4	Bhadrabala Trivedi	9,47,776	2.49	900600	95.02	2.37	2.49
5	Nandita Trivedi	8,82,423	2.32	862000	97.69	2.27	2.32
6	Utkarsh Trivedi	8,58,337	2.26	858300	100.00	2.26	2.26
7	Vishwakarma Creations Private Limited	5,55,000	1.46	555000	100.00	1.46	1.46
8	Olympian Investors and Traders Private Limited	4,40,115	1.16	307750	69.92	0.81	1.16
9	Kailash Chandra Trivedi	2,86,300	0.75	286300	100.00	0.75	0.75
10	Sanjay Trivedi	2,00,000	0.53	0	0.00	0.00	0.53
11	Neo Flex Limited	1,78,034	0.47	0	0.00	0.00	0.47
12	Nandita Trivedi	1,74,500	0.46	141440	81.05	0.37	0.46
13	Aniruddh Sharma	97,000	0.26	97000	100.00	0.26	0.26
14	Sanjay Trivedi	50,000	0.13	0	0.00	0.00	0.13
15	Vishwakarma Creations Private Limited	3,927	0.01	0	0.00	0.00	0.01
16	Rani Sharma	2,600	0.01	0	0.00	0.00	0.01
17	Anirudh Sharma	2,500	0.01	0	0.00	0.00	0.01
18	Pradhuman Sharma	200	0.00	0	0.00	0.00	0.00
	Total	84,69,785	22.28	6361083	75.10	16.73	22.28

Shareholding belonging to the category "Public" and holding more than 1% of the Total No. of Share

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	VLS Finance Limited	1354436	3.56	3.56
2	Overall Financial Consultants Private Limited	961915	2.53	2.53
3	Jas Polysack Private Limited	951617	2.50	2.50
4	Zenith Netals Private Limited	924412	2.43	2.43
5	Exclusive Securities Limited	895400	2.35	2.35
6	Emperor Impex Private Limited	801650	2.11	2.11
7	Fraternity Plastofab Private Limited	736455	1.94	1.94
8	Inertia Impex Private Limited	530000	1.39	1.39
9	Exclusive Securities Limited	496183	1.30	1.30
	Total	7652068	20.13	20.13

Details of Depository Receipts (DRs)

Sl. No.	Type of Outstanding DR (ADRs, GDRs, SDRs, etc.)	No. of Outstanding DRs	No. of Shares Underlying  Outstanding DRs	Shares Underlying Outstanding DRs as % of Total No. of Shares
1	GDR	2,46,314	49,26,280	12.96
	Total	2,46,314	49,26,280	12.96

BUSINESS DETAILS

Line of Business :

Subject is engaged in manufacture of technical textiles.

Products :

Products Description	Item Code No.
FIBC / SACK	39232990
Fabrics	39269099
Shade Net	60059000

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

• State Bank of India, Indore Branch
• Export Import Bank of India
• State Bank of Travancore
• State Bank of Bikaner and Jaipur
• Punjab National Bank
• IDBI Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Long Term Borrowing
Term Loans Form Bank	500.306	596.823
Short Term Borrowing
Working Capital Loan Form Banks	970.622	808.433
Total	1470.928	1405.256

Banking Relations :	---
Auditors :
Name :	A.P. Garg and Company Chartered Accountants
Address :	Vastu Bhawan', 1st Floor, 71 Dhar Kothi Indore – 452 001 Madhya Pradesh India
Subsidiary Companies	Euro Plast Limited, U.K. Sacos Indigo Private Limited Neoflex Infracon Limited Polybase (H.K.) Limited Poly Logic International Private Limited Prism Flexible Solutions Private Limited
Associated Companies	Panam Packers Private Limited Synergy Education International Private Limited Vishwkarma Creations Private Limited Olympian Investors and Traders Private Limited

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
69000000	Equity Shares	Rs.10/- each	Rs.690.000 Millions
1000000	Cum. Compulsorily Convertible Preferences Shares	Rs.10/- each	Rs.10.000 Millions
	Total		Rs.700.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
38022198	Equity Shares	Rs.10/- each	Rs.380.222 Millions

Authorised Capital Increased by 52 000 000 equity shares of 10/- each in order to raise equity by way of issue of Global Depository Receipts(GDRs)/ American Depository Receipts (ADR’s) / Foreign Currency Convertible Bonds/ Equity Shares/warrants or any other similar instruments in financial year 2011-12.

2,40,00,000 Equity shares representing 12,00,000 GDRs at US$ 19.25 were allotted out of the issued, subscribed and paid up share capital in the year 2011-12. Underlying equity shares being 20 per GDR.

35,00,000 Equity shares of 10/- each at a premium of 50 per share were allotted on preferential basis out of the issued, subscribed and paid up share capital in the year 2010-11.

2,92,898 Equity shares of 10/- each at a premium of 58 per share were allotted on conversion of 292898 Cumulative Compulsory Convertible Preference Shares (‘CCCPs’ ) out of the issued, subscribed and paid up share capital in the year 2010-11.

15,75,000 Equity shares of 10/- each at a premium of 43/- per share were allotted pursuant to conversion of warrants out of the issued, subscribed and paid up share capital in complaince with SEBI (ICDR) Regulations, 2009 in the year 2010-11.

799984 Equity shares out of the issued, subscribed and paid up share capital held by subsidiary and associate companies having voting rights and eligible for dividend.

Details of shareholders holding more than 5% shares

Name of the shareholder	No. of Shares	% of Holding
SSJ Finance and Securities Private Limited	2064704	5.43
	2064704	5.43

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

Name of the shareholder	No. of Shares
Equity Shares at the beginning of the year	38022198
Add : Shares issued pursuant to GDR issue	--
Equity Shares at the end of the year	38022198

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	380.222	380.222	140.222
(b) Reserves & Surplus	1974.224	1813.270	800.542
(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)	2354.446	2193.492	940.764
(3) Non-Current Liabilities
(a) long-term borrowings	593.655	608.727	328.667
(b) Deferred tax liabilities (Net)	92.946	82.820	37.092
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	7.899	5.385	4.920
Total Non-current Liabilities (3)	694.500	696.932	370.679
(4) Current Liabilities
(a) Short term borrowings	971.402	929.955	692.647
(b) Trade payables	748.292	596.028	457.090
(c) Other current liabilities	391.107	412.754	238.057
(d) Short-term provisions	76.928	73.191	45.983
Total Current Liabilities (4)	2187.729	2011.928	1433.777
TOTAL	5236.675	4902.352	2745.220
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	795.664	773.587	482.878
(ii) Intangible Assets	8.453	0.000	0.000
(iii) Capital work-in-progress	541.935	331.659	172.996
(iv) Intangible assets under development	0.650	9.165	0.000
(b) Non-current Investments	592.820	468.495	185.777
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	562.929	787.784	102.726
(e) Other Non-current assets	31.154	35.045	0.305
Total Non-Current Assets	2533.605	2405.735	944.682
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1297.019	878.389	573.997
(c) Trade receivables	764.642	640.135	647.169
(d) Cash and cash equivalents	123.960	107.714	46.973
(e) Short-term loans and advances	127.356	212.047	31.379
(f) Other current assets	390.093	658.332	501.020
Total Current Assets	2703.070	2496.617	1800.538
TOTAL	5236.675	4902.352	2745.220

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	4242.331	2839.884	2310.666
		Other Income	58.767	60.006	84.305
		TOTAL (A)	4301.098	2899.890	2394.971
Less	EXPENSES
		Cost of Materials Consumed	3725.852	2284.107	1952.441
		Purchases of Stock-in-Trade	1.347	18.109	42.497
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(384.977)	(148.632)	(203.842)
		Employees benefits expense	164.424	75.227	73.806
		Other expenses	223.177	228.399	201.273
		Exceptional and Extraordinary Items	78.238	0.000	0.000
		TOTAL (B)	3808.061	2457.210	2066.175
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		493.037	442.680	328.796
Less	FINANCIAL EXPENSES (D)		222.535	185.530	136.885
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		270.502	257.150	191.911
Less/ Add	DEPRECIATION/ AMORTISATION (F)		47.970	37.378	25.226
	PROFIT BEFORE TAX (E-F) (G)		222.532	219.772	166.685
Less	TAX (H)		64.227	53.978	24.825
	PROFIT AFTER TAX (G-H) (I)		158.305	165.794	141.860
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		543.941	403.175	272.017
Less	APPROPRIATIONS
		Transfer to General Reserve	2.500	2.500	2.500
		Dividend	22.095	22.528	7.011
		Tax on Dividend			1.191
	BALANCE CARRIED TO THE B/S		677.651	543.941	403.175
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	1008.475	913.710	873.027
	TOTAL EARNINGS		1008.475	913.710	873.027
	IMPORTS
		Raw Materials	107.204	16.520	77.267
		Capital Goods	54.365	164.596	86.547
		Stores & Spares	0.592	0.546	0.00
	TOTAL IMPORTS		162.161	181.662	163.814
	Earnings Per Share (Rs.)		4.16	7.44	12.04

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	3.68	5.72	5.92
Net Profit Margin (PBT/Sales)	(%)	5.25	7.74	7.21
Return on Total Assets (PBT/Total Assets}	(%)	5.43	5.37	6.98
Return on Investment (ROI) (PBT/Networth)		0.09	0.10	0.18
Debt Equity Ratio (Total Debt /Networth)		0.66	0.70	1.09
Current Ratio (Current Asset/Current Liability)		1.24	1.24	1.26

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	140.222	380.222	380.222
Reserves & Surplus	800.542	1813.270	1974.224
Net worth	940.764	2193.492	2354.446
long-term borrowings	328.667	608.727	593.655
Short term borrowings	692.647	929.955	971.402
Total borrowings	1021.314	1538.682	1565.057
Debt/Equity ratio	1.086	0.701	0.665

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2310.666	2839.884	4242.331
		22.903	49.384

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2310.666	2839.884	4242.331
Profit	141.860	165.794	158.305
	6.14%	5.84%	3.73%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT

Rs. In Millions

Particular	31.03.2013	31.03.2012	31.03.2011
Current maturities of long-term debt	151.646	126.135	94.797

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

Particular	As on 31.03.2013	As on 31.03.2012
Long Term Borrowing
Term Loans (From Banks) (Hire Purchase against Hypothecations of Vehicles)	4.590	11.904
From Corporates Bodies	88.759	0.000
Short Term Borrowing
From Director	0.780	0.289
From Corporate Bodies	0.000	121.233
Total	94.129	133.426

YEAR IN RETROSPECT

The Company has maintained its excellent pace of growth reflected by the significant rise in Turnover. During the year, The Company has recorded a turnover of Rs.4242.300 Millions as against Rs.2839.900 Millions in the previous year registering an increase of 49.38%. The Net profit (before tax and extra ordinary items) for the financial year ended 31st March 2013 increased to Rs.300.700 Millions from Rs.219.700 Millions in the previous year representing an increase of 36.86 %.

BUSINESS OVERVIEW

Technical Textile sector is one of the most innovative branch of the industry in the world, ranking as one the five high tech sectors with the greatest potential for development. The success of technical textiles is primarily due to the creativity, innovation and versatility in fibres, yarns and woven/knitted/nonwoven fabrics with applications spanning an enormous range of uses. The ability of technical textiles to combine with each other and with others to create a new functional products offer unlimited opportunity to growth.

The growth of the industry has been primarily due to the entrepreneurial ingenuity of the Indian industry supplemented by the scheme of the government of the Indian incentivizing the investment in the sector. The government of India also recognized the need to have the industry’s active participation to bring out the issues, concerns and suggest policy framework that would lay the foundation for this sector.

The production of different items of technical textile industry has been slowly but steadily increasing in the country which is further contributing in the growth of the industry as a whole

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

OVERVIEW

Technical textiles are high performance textiles that require special functionality. The market of technical textiles is significant and expanding as the products are being put to an ever-increasing number of end uses in various industries such as agriculture, clothing, construction, health care, transportation, packaging, sports, environmental protection, protective wear, and many more.

Secondly as the country is transforming into a developed nation, huge emphasis is being laid down in adopting latest technologies and procedures in various fields. Therefore the market for technical textiles is very positive and poised for a stupendous growth. Attractive statistics for market potential seem inviting for global intervention.

Since the growth of technical textiles industry serves the interests of the government and the nation, hence it is inevitable to see a major thrust on the development of this industry by giving impetus on product and local consumption. This offers a compelling reason for the buyers and sellers of technical textiles to keep their focus on India and develop a rational strategy to seize the emerging opportunities.

SYNOPSIS ON GROWTH OF NCIL

Subject was incorporated in Year 15th February 1985

Subject, since its inception in 1985, is dedicated in making tailor designed products under Packtech. NCIL reached the status of a fore-runner internationally as a reliable supplier of Packtech products.

With its current growth initiative, NCIL has entered into other technical textile segments like Geotech and Agrotech.

Subject is a listed Public Limited Company with an equity base of Rs.380.200 Millions. It is listed on the Bombay Stock Exchange, Madhya Pradesh Stock exchange and Luxembourg Stock Exchange. It approached public for subscription in 1992 and went through Rights issue in 1996. Subject has 6 subsidiary companies namely Euro Plast Limited, Sacos Indigo Private Limited, Neoflex Infracon Limited, Polybase (H.K.), Poly Logic International Private Limited and added a new subsidiary ‘Prism Flexible Solutions Private Limited’ in year 2012-13 by virtue of controlling the composition of Board of Directors.

Subject also enjoys a Star Export House status recognized by the Government of India continuously from 1994 in view of the Company's excellent Export performance.

COMPANY’S OUTLOOK

Technical Textiles has often been referred to as the sunshine sector in India. The success of technical textiles is primarily due to the creativity, innovation and versatility in fibres, yarns and woven/knitted/non-woven fabrics with applications spanning an enormous range of uses in a very diverse range of economic activities. The ability of technical textiles to combine different technologies to create new functional products offer unlimited opportunity for growth.

Subject is making all efforts to embark on a suitable opportunity in the Technical Textile space. The Company's management is keeping all its options open to pursue a profitable business opportunity.

The company’s growth graph with respect to the financials showed a steep upward trend on account of diversification into the value added Packtech products likes FIBC’s for packaging of food products; leno bags and additions of Agrotech products.

FIXED ASSETS

• Land and Site Development
• Plant and Machinery
• Building
• Electricity Installation
• Office Equipment
• Vehicles
• Fire Extinguisher
• Furniture and fixture
• Weighing Scales
• Computer
• Wind Mill

Statement of Standalone Unaudited Results for the Quarter Ended and nine months ended 31st December. 2013

Rs. In Millions

	Particulars	3 months ended 31.12.2013	Preceding 3 months ended 30.09.2013	Year to date figures for the period ended 31.12.2013
		(Unaudited)	(Unaudited)	(Unaudited)
1	Income from operations
	(a) Net sales/income from operations (Net of excise duty)	1385.550	1557.786	4119.370
	(b) Other operational income	2.575	56.961	102.969
	Total income from operations (net)	1388.126	1614.747	4222.338
2	Expenses
	(a) Cost of materials consumed	1016.111	1727.703	3918.684
	(b) Purchases of stock‐in‐trade	0.000	0.000	0.000
	(c) Changes in inventory	60.531	(435.415)	(597.141)
	(d) Employee benefits expense	32.991	40.513	119.925
	(f) Depreciation and amortisation expense	29.617	20.687	64.662
	(g) Other expenses	100.293	76.974	239.895
	Total expenses	1239.543	1430.462	3746.023
3	Profit / (Loss) from operations before other income, finance costs and exceptional items (1‐2)	148.583	184.285	476.315
4	Finance costs	82.005	47.215	192.769
5	Profit / (Loss) from ordinary activities after finance costs but before exceptional items(3 + 4)	66.578	137.070	283.546
6	Exceptional items	0.000	0.000	0.000
7	Profit / (Loss) from ordinary activities before tax(5 ‐ 6)	66.578	137.070	283.546
8	Tax expense	16.351	39.879	76.553
9	Net Profit / (Loss) After Tax (7‐8)	50.227	97.191	206.993
10	Paid‐up equity share capital of Rs 10/‐ each	380.222	380.222	380.222
11	Earnings per share (Face Value of Rs 10/‐ each) (not annualised):
	(a) Basic	1.32	2.56	5.44
	(b) Diluted	1.32	2.56	5.44
	PARTICULARS OF SHAREHOLDING
1	Public shareholding ‐ Number of shares	30614101	30654052	30614101
	‐ Percentage of shareholding	80.51	80.62	80.51
2	Promoters and Promoter Group Shareholding
	a) Pledged / Encumbered
	‐ Number of shares	5933343	4450850	5933343
	‐ Percentage of shares (as a % of the total shareholding of promoter and promoter group)	80.09	60.41	80.09
	‐ Percentage of shares (as a % of the total share capital of the company)	15.60	11.71	15.60
	b) Non ‐ encumbered
	‐ Number of shares	1474754	2917296	1474754
	‐ Percentage of shares (as a % of the total shareholding of the Promoter and Promoter group)	19.91	39.59	19.91
	‐ Percentage of shares (as a % of the total share capital of the company)	3.89	7.67	3.89
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	Nil
	Received during the quarter	3
	Disposed of during the quarter	3
	Remaining unresolved at the end of the quarter	Nil

Note:

1. The above unaudited financial results were reviewed and recommended by the Audit Committee, for approval by the Board, at its meeting held on 14th February, 2014 and were approved and taken on record at the meeting of the Board of Directors of the Company held on that date.
2. The company operates in a single business segment. ie.Technical Textiles. Hence the disclosure under Accounting Standard 17 is not applicable.
3. Figures of previous period/year have been regrouped/re‐arranged wherever necessary as per revised schedule‐VI of the Companies Act,1956.
4. The unaudited results are subject to Limited Review by the Auditors.
5. The consolidated unaudited financial Results includes the results of subsidiary companies M/s Euro Plast Limited, U.K.,M/s Poly Logic International Private Limited, M/s Sacos Indigo Private Limited, M/s Polybase (H.K.) Limited. H.K, M/s Neoflex Infracon Limited and M/s Prism Flexible Solutions Private Limited.

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.60.14
UK Pound	1	Rs.102.83
Euro	1	Rs.82.28

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	RAS
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--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		54

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.