MIRA INFORM REPORT

Report No. :	318412
Report Date :	23.04.2015

IDENTIFICATION DETAILS

Name :	GANESHA ECOSPHERE LIMITED
Registered Office :	Villege Raipur Rania, Kalpi Road, District Kanpur Dehat - 209304, Uttar Pradesh
Tel. No.:	91-512-2154183
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	30.10.1987
Com. Reg. No.:	009090
Capital Investment / Paid-up Capital :	Rs. 151.860 Million
CIN No.: [Company Identification No.]	L51109UP1987PLC009090
TAN No.: [Tax Deduction and 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 :	The Company is primarily in the business of manufacturing and selling of Polyester Staple Fibre and Polyester Yarn and also engaged in the recycling of post-consumer PET bottle waste into Recycled Polyester Staple Fibre (RPSF).
No. of Employees :	3000 (Approximately)

RATING and COMMENTS

MIRA’s Rating :

Ba (46)

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

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The rating reflects company sound financial risk profile marked by healthy networth position and decent profitability of the company. Trade relations are reported as fair. Business is active. Payment terms are reported to be usually correct 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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	Not Available

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 PARTED BY

Name :	Mr. Gupta
Designation :	Accounts Department
Contact No.:	91-512-2555504
Date :	20.04.2015

LOCATIONS

Registered Office / Manufacturing Unit 1:	Villege Raipur Rania, Kalpi Road, District Kanpur Dehat - 209304, Uttar Pradesh, India
Tel. No.:	91-512-2154183 / 2555504
Fax No.:	Not Available
E-Mail :	gplworks@rediffmail.com shrdept@gmail.com geslworksknp@ganeshaecosphere.com
Website :	http://www.ganeshaecosphere.com
Location :	Rented
Administrative Office :	113/216-B, Swaroop Nagar, Kanpur-208002, Uttar Pradesh, India
Tel. No.:	91-512-2555504-06
Fax No.:	91-512-2555293
E-Mail :	gpl@sancharnet.in
Marketing Office :	309, Agarwal Cyber Plaza, Netaji Subhash Place, Pitampura, New Delhi – 110034, India
Tel. No.:	91-11-27352015
Fax No.:	91-11-27352016
E-Mail :	gplpoly@bol.net.in
Manufacturing Unit 2:	Plot No. 6, Sector -2, Integrated Industrial Estate, Pantnagar, Rudrapur - 263153, Uttarakhand, India
Manufacturing Unit 3:	Khata No. 96 and 97, Arazi Village Kotha,  Ali Nagar, Pargana and Tehsil Bilaspur,  District Rampur, Uttar Pradesh, India
Manufacturing Unit 4:	Gata No. 103,109,113,111,125,126,127, Village Temra, Tehsil Bilaspur, District Rampur, Uttar Pradesh, India
Manufacturing Unit 5:	Gata No. 112, Village Temra, Tehsil Bilaspur, District Rampur, Uttar Pradesh, India
Branches :	Located At : Ludhiana Haryana Mumbai Jaipur

DIRECTORS

AS ON 31.03.2014

Name :	Mr. Shyam Sunder Sharmma
Designation :	Chairman and Managing Director
Name :	Mr. Vishnu Dutt Khandelwal
Designation :	Executive Vice Chairman
Name :	Mr. Sharad Sharma
Designation :	Joint Managing Director
Name :	Mr. Rajesh Sharma
Designation :	Executive Director
Name :	Mr. Gopal Singh Shekhavat
Designation :	Director-Administration
Name :	Mr. Surendra Kumar Kabra
Designation :	Director
Name :	Mr. Pradeep Kumar Goenka
Designation :	Director
Name :	Mr. Vishwa Nath Chandak
Designation :	Director
Name :	Mr. Anoop Gupta
Designation :	Director
Name :	Mrs. Poonam Garg
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Gopal Agarwal
Designation :	Chief Financial Officer
Name :	Mr. Bharat Kumar Sajnani
Designation :	Company Secretary
Name :	Mr. Gupta
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2014

category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	6057060	39.89
Bodies Corporate	2552001	16.80
Sub Total	8609061	56.69
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	8609061	56.69
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	5500	0.04
Financial Institutions / Banks	100	0.00
Sub Total	5600	0.04
(2) Non-Institutions
Bodies Corporate	1788542	11.78
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	2567599	16.91
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1915325	12.61
Any Others (Specify)	299873	1.97
Non Resident Indians	79936	0.53
Hindu Undivided Families	206902	1.36
Clearing Members	13035	0.09
Sub Total	6571339	43.27
Total Public shareholding (B)	6576939	43.31
Total (A)+(B)	15186000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	15186000	100.00

BUSINESS DETAILS

Line of Business :	The Company is primarily in the business of manufacturing and selling of Polyester Staple Fibre and Polyester Yarn and also engaged in the recycling of post-consumer PET bottle waste into Recycled Polyester Staple Fibre (RPSF).
Products :	Not Divulged
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :
Products :	Fabric
Countries :	European Courtiers
Imports :
Products :	Raw Material
Countries :	All over the world
Terms :
Selling :	Cash, Cheque and Credit
Purchasing :	Cash, Cheque and Credit

PRODUCTION STATUS : NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

3000 (Approximately)

Bankers :

Bank Name	State Bank of India Allahabad Bank Bank of Baroda ICICI Bank Limited
Branch	Not Divulged
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Rupee Term Loans from Banks and Financial Institution	841.265	843.250
Rupee Term Loans from Others	23.385	9.503
Foreign Currency Loan from Financial Institution	167.541	0.000
Buyers Credit from Banks in Foreign Currency	129.567	87.375
Short-term borrowings
Working Capital Loans from Banks
- Rupee Loans	633.899	292.492
- Foreign Currency Loans	7.894	150.006
- Foreign Currency Loans - Buyers Credit arrangements	109.595	87.823
Total	1913.146	1470.449

NOTE:

LONG TERM BORROWINGS

Nature of Security and Terms of Repayment:

a) Rupee Term Loans from Banks and Financial Institution:

i) Rupee Term Loans and Foreign Currency Loan from Banks and FI, including Buyers credit from Banks, aggregating to Rs.1277.967 Million (Previous Year Rs.1029.670 Million) are secured by way of first charge, on pari-passu basis among lending banks and FI, over entire fixed assets (present and future) (except the assets exclusively charged/ hypothecated against specific loan) including equitable mortgage of entire properties of the Company. These loans are further secured by way of extension of first charge on pari-passu basis, on current assets of the Company and personal guarantees of executive directors and others. These loans are repayable in monthly/ quarterly installments as per following maturity profile:

2014-15	2015-16	2016-17	2017-18	2018-19	2019-20
Rs. In Million
140.900	291.657	330.093	341.076	99.567	74.675

ii) Corporate term loan from bank of Rs. Nil (Previous Year Rs.17.500 Million) is secured by way of extension of first charge, on pari-passu basis with other working capital lending banks, over entire current assets (present and future) of the company.

Corporate loan is further secured by way of extension of first pari-passu charge over fixed assets, excluding assets specifically charged/ hypothecated for specific loan, of the company and personal guarantees of executive directors and others.

iii) Loans aggregating to Rs.1.839 Million (Previous Year Rs.0.983 Million) relate to vehicle purchased and are secured by way of hypothecation and exclusive charge of specified vehicles. Maturity profile is as under:

2014-15	2015-16	2016-17	2017-18	2018-19
Rs. In Million
0.532	0.353	0.397	0.362	0.195

b) Rupee term loans from Others aggregating to Rs.36.192 Million (Previous Year Rs.20.246 Million) relate to assets purchased under hire purchase/ financing arrangements with finance companies and are secured by way of hypothecation of the specified assets.

These loans are further secured by personal guarantees of some of the executive directors. Repayable in monthly installments and maturity profile is as under:

2014-15	2015-16	2016-17	2017-18
Rs. In Million
12.808	10.018	10.468	2.899

SHORT TERM BORROWINGS

a) Working capital loans from Banks except Buyers’ Credit arrangement of Rs.96.379 Million (Previous Year Rs.55.824 Million) are secured by hypothecation of current assets of the Company both present and future, ranking pari-passu inter-se. These loans are further secured by way of extension of pari-passu 1st charge on fixed assets (except the assets exclusively charged/ hypothecated against specific loan) of the Company and also guaranteed by the Executive Directors and others.

b) Buyers’ credit arrangement of Rs.96.379 Million (Previous Year Rs.55.824 Million) from banks is secured by way of pledge of fixed deposit receipts.

Auditors :
Name :	Mehrotra Rakesh Kumar and Company Chartered Accountants
Address :	Kanpur, Uttar Pradesh, India
Memberships :	--
Collaborators :	--
Companies and Concerns Controlled by Key Management Personnel/Relatives::	Sandeep Yarns Private Limited GPL Finance Limited

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
24,000,000	Equity Shares	Rs.10/- each	Rs. 240.000 Million
450,000	Preference Shares	Rs.100/- each	Rs. 45.000 Million
	Total		Rs.285.000 Million

Issued, Subscribed and Paid-up Capital :

No. of Shares	Type	Value	Amount
15,186,000	Equity Shares	Rs.10/- each	Rs. 151.860 Million

The reconciliation of the number of shares outstanding is as under:

PARTICULARS	No. of Shares
Equity Shares outstanding at the beginning of the year	15,186,000
Add: Shares issued during the year	---
Equity Shares outstanding at the end of the year	15,186,000
Preference Shares outstanding at the beginning of the year	50,000
Less: Redemption during the year	50,000
Preference Shares outstanding at the end of the year	----

Equity shares are having par value of Rs.10/-per share. Each Shareholder is eligible for one vote per share. Equity shareholders are having the right of dividend, proposed by the Board of Directors subject to the approval of shareholders except in case of interim dividend.

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion to their holding.

Preference Shareholders do not have the voting rights but are having the preferential rights over equity shareholders, for getting the fixed dividend on cumulative basis and also redemption of Capital in the event of liquidation. Preference Shares of Series I have been redeemed at a premium of Rs.200/- each on 30.09.2013 along with accrued dividend.

The details of Shareholders holding more than 5% shares:

PARTICULARS	As on 31.03.2014
	No. of Shares	% of holding
a) Equity shares
Shyam Sunder Sharmma	2,163,927	14.25
GPL Finance Limited	2,123,201	13.98
Rajesh Sharma	1,095,525	7.21
Sharad Sharma	1,075,583	7.08
Vishnu Dutt Khandelwal	920,200	6.06
b) 10% Cumulative Redeemable Preference Shares - Series I
Essel Industries Private Limited	NA	NA
Sandeep Yarns Private Limited	NA	NA

The Company has neither issued shares for a consideration other than cash/ bonus shares nor bought back any shares during immediately preceding 5 years.

FINANCIAL DATA

[all figures are in Rupees Million]

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	151.860	156.860	196.860
(b) Reserves and Surplus	1080.319	857.382	642.981
(c) Money received against share warrants	16.240	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	1248.419	1014.242	839.841
(3) Non-Current Liabilities
(a) long-term borrowings	1251.499	1068.267	360.359
(b) Deferred tax liabilities (Net)	65.524	49.908	50.269
(c) Other long term liabilities	34.997	29.661	3.731
(d) long-term provisions	15.975	14.244	12.248
Total Non-current Liabilities (3)	1367.995	1162.080	426.607
(4) Current Liabilities
(a) Short term borrowings	764.938	538.393	413.960
(b) Trade payables	281.944	152.188	154.940
(c) Other current liabilities	415.578	316.895	277.103
(d) Short-term provisions	32.962	32.570	54.056
Total Current Liabilities (4)	1495.422	1040.046	900.059
TOTAL	4111.836	3216.368	2166.507
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2024.251	1027.912	1027.739
(ii) Intangible Assets	2.098	1.905	1.116
(iii) Capital work-in-progress	596.176	848.000	51.985
(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	0.000
(d) Long-term Loan and Advances	26.521	134.581	37.136
(e) Other Non-current assets	173.145	109.046	78.960
Total Non-Current Assets	2822.191	2121.444	1196.936
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	607.465	390.706	473.177
(c) Trade receivables	392.042	344.048	311.200
(d) Cash and cash equivalents	193.374	256.022	101.763
(e) Short-term loans and advances	51.446	37.953	42.672
(f) Other current assets	45.318	66.195	40.759
Total Current Assets	1289.645	1094.924	969.571
TOTAL	4111.836	3216.368	2166.507

PROFIT and LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	4994.769	4352.893	3855.061
	Other Income	15.527	10.750	16.981
	TOTAL (A)	5010.296	4363.643	3872.042
Less	EXPENSES
	Cost of Materials Consumed	3300.846	2838.997	2718.230
	Purchases of Stock-in-Trade	162.945	44.970	7.577
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(57.879)	84.583	(115.079)
	Employees benefits expense	247.855	199.289	166.366
	Other expenses	793.529	713.928	661.064
	Extra Ordinary Items	15.616	0.000	0.000
	TOTAL (B)	4462.912	3881.767	3438.158
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	547.384	481.876	433.884
Less	FINANCIAL EXPENSES (D)	158.604	102.550	110.313
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	388.780	379.326	323.571
Less/ Add	DEPRECIATION/ AMORTISATION (F)	125.618	114.640	109.892
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	263.162	264.686	213.679
Less	TAX (H)	17.727	23.488	6.691
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	245.435	241.198	206.988
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	413.223	566.342	769.030
	TOTAL EARNINGS	413.223	566.342	769.030
	IMPORTS
	Raw Materials / Traded Goods	480.160	175.960	152.566
	Stores parts	19.156	13.874	20.773
	Capital Goods	432.449	168.699	38.801
	TOTAL IMPORTS	931.765	358.533	212.140
	Earnings / (Loss) Per Share (Rs.)	16.74	15.52	14.10

Expected Sales ( 2014-2015 ) : Rs.6000.000 Million

The above information has been parted / denied by Mr. Gupta.

QUARTERLY RESULT

PARTICULARS	31.12.2014	30.09.2014	30.09.2014
Audited / Unaudited	Unaudited	Unaudited	Unaudited
Net Sales	1458.800	1554.300	1572.800
Total Expenditure	1307.100	1396.900	1417.200
PBIDT (Excl OI)	151.700	157.400	155.600
Other Income	2.500	4.300	5.200
Operating Profit	154.200	161.600	160.800
Interest	46.900	51.800	51.500
Exceptional Items	0.000	0.000	0.000
PBDT	107.300	109.900	109.300
Depreciation	45.200	41.200	40.900
Profit Before Tax	62.100	68.700	68.500
Tax	15.900	0.500	6.900
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	46.200	68.200	61.600
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	46.200	68.200	61.600

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	4.91	5.54	5.37
Operating Profit Margin (PBIDT/Sales)	(%)	10.96	11.07	11.25
Return on Total Assets (PBT/Total Assets}	(%)	7.49	11.18	10.11
Return on Investment (ROI) (PBT/Networth)		0.21	0.26	0.25
Debt Equity Ratio (Total Debt /Networth)		1.62	1.58	0.92
Current Ratio (Current Asset/Current Liability)		0.86	1.05	1.08

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	196.860	156.860	151.860
Reserves and Surplus	642.981	857.382	1080.319
Money received against share warrants	0.000	0.000	16.240
Net worth	839.841	1014.242	1248.419
long-term borrowings	360.359	1068.267	1251.499
Short term borrowings	413.960	538.393	764.938
Total borrowings	774.319	1606.660	2016.437
Debt/Equity ratio	0.922	1.584	1.615

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	3855.061	4352.893	4994.769
		12.914	14.746

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	3855.061	4352.893	4994.769
Profit	206.988	241.198	245.435
	5.37%	5.54%	4.91%

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	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
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 LOAN

PARTICULARS

31.03.2014

(Rs. in Million)

31.03.2013

(Rs. in Million)

Long-term Borrowings

375,000 (Previous Year 500,000) Non-Convertible Debentures of Rs.90/- each

33.750

45.000

Rupee Term Loans from Others

30.776

61.850

Deferred Payment Liability

0.000

5.064

Fixed Deposits

from Related Parties

21.932

10.345

from Others

3.283

5.880

Short-term borrowings

Loans repayable on demand:

- from Directors and other related parties

13.450

6.072

- from Others

0.100

2.000

Total

103.291

136.211

NOTE :

LONG TERM BORROWINGS

Repayment of Non-Convertible Debentures of Rs. 33.750 Million (Previous Year Rs.45.000 Million) has been guaranteed by executive directors and others personally as well as by pledge of shares owned by them. These debentures are to be redeemed during April, 2015 along with premium.

Repayment of Rupee term loans of Rs.83.569 Million (Previous Year Rs.84.888 Million) from other parties have been guaranteed by executive directors. Out of above, Loan of Rs.55.000 Million is additionally secured by pledge of shares owned by executive directors and others. These loans are repayable in monthly/quarterly installments as per following maturity profile:

2014-15	2015-16	2016-17
Rs. In Million
52.793	19.299	11.477

Maturity profile of Fixed Deposits is as under:

2014-15	2015-16	2016-17
Rs. In Million
13.825	0.000	25.215

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
a) Bills Discounted under Letters of Credit and outstanding	87.247	58.122
b) Claims against the Company not acknowledged as debt	2.206	1.980
c) Disputed Tax matters under appeal:
- Income Tax demand	0.250	0.250
- Entry Tax Liability	2.788	2.788
- Excise Duty Liability	1.557	1.557
- RTO Tax liability in respect of Company's old vehicle	0.000	0.553
d) Appeal filed against the Company before Hon'ble Supreme Court in respect of amount received by the Company under an award decided in favour of the Company	8.098	8.098
e) Service Tax Refund disputed by Customs, Central Excise and Service Tax Department in CESTAT	0.228	0.228
Total	102.374	73.576

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10531448	29/09/2014	720,000.00	BANK OF BARODA	MID CORPORATE BRANCH, SWAROOP NAGAR, KANPUR, UTTA  R PRADESH - 208002, INDIA	C33701954
2	10511850	11/06/2014	1,200,000.00	BANK OF BARODA	MID CORPORATE BRANCH, SWAROOP NAGAR, KANPUR, UTTA  R PRADESH - 208002, INDIA	C14323984
3	10495911	28/03/2014	279,000,000.00	ALLAHABAD BANK	ALLAHABAD BANK, MAIN BRANCH, M.G. ROAD, KANPUR, U  TTAR PRADESH - 208001, INDIA	C04825519
4	10485913	21/02/2014	505,000.00	BANK OF BARODA	MID CORPORATE BRANCH, SWAROOP NAGAR, KANPUR, UTTA  R PRADESH - 208002, INDIA	C00845222
5	10460811	12/10/2013	1,015,000,000.00	STATE BANK OF INDIA (LEAD BANK)	OVERSEAS BRANCH, 15/54 B, VIRENDRA SMRITI COMPLEX  ,CIVIL LINES, KANPUR, UTTAR PRADESH - 208001, INDI  A	B89777304
6	10449932	27/08/2013	750,000.00	BANK OF BARODA	MID CORPORATE BRANCH, SWAROOP NAGAR, KANPUR, UTTA  R PRADESH - 208002, INDIA	B85348142
7	10413141	03/03/2014 *	1,547,300,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, 15/54-B, VIRENDRA SMRITI COMPLEX  , CIVIL LINES, KANPUR, UTTAR PRADESH - 208001, IND  IA	C05189832
8	10386850	22/10/2012	580,000.00	BANK OF BARODA	MID CORPORATE BRANCH, SWAROOP NAGAR, KANPUR, UTTA  R PRADESH - 208002, INDIA	B62175344
9	10360828	19/03/2013 *	500,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR 21,, WORLD TRADE CENTR  E COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400  005, INDIA	B75202507
10	10244629	25/02/2011 *	7,400,000.00	TATA CAPITAL LIMITED	ONE FORBES, DR V B GANDHI MARG,FORT, MUMBAI, MAHA  RASHTRA - 400001, INDIA	B08367815

* Date of charge modification

FINANCIAL AND OPERATIONAL PERFORMANCE

Financial Year 2013-14, was a challenging year in which Indian economy witnessed lower economic growth. Rising inflation, depreciating currency and rising cost of inputs were the buzz word during the year. Despite this unfavourable, volatile and uncertain business environment, the Company has recorded revenues from operations of Rs.4994.800 Million in financial year 2013-14, as compared with previous year’s revenues of Rs.4352.900 Million, thus registering rise of 14.75%. Earnings before Depreciation, Interest and Taxation (EBITDA) stood at Rs.563.000 Million in the current year, as compared with Rs.481.900 Million in the previous year, recorded an increase of 16.83%. During the Financial Year 2013-14, the Company has achieved Net Profits of Rs.245.400 Million as against the Net Profits of Rs.241.200 Million in previous year recording an increase of 1.75%.

The improvement in Turnover of the Company has been mainly on account of increase in sales volume due to addition in production capacity which was not correspondingly reflected in PAT due to increase in cost of Inputs, Finance and Depreciation charges as well as extra ordinary loss of Rs.15.600 Million due to fire at Kanpur unit against which Insurance claim is yet to be settled.

The Directors are pleased to report that the Company’s green field project for manufacturing of spun yarn from Recycled Polyester Staple Fibre (RPSF) with an installed capacity of 25,920 spindles at Temra, Bilaspur, Distt. Rampur (U.P.) and expansion project to increase the existing recycling capacity of RPSF at Kanpur unit by 9,000 TPA, had commenced commercial production w.e.f. 01.11.2013 and full effect thereof will be reflected in the working of current financial year.

During the current year, the expansion project of Recycled Polyester Staple Fibre (RPSF) of 21,000 TPA at Bilaspur has also commenced trial production. The Directors hope that the additional capacity shall considerably reduce the lead time for delivering new products and also will improve the Top and Bottom line.

During the year, the Company made allotment of 1,015,000 Convertible Equity Warrants to the ‘Promoter’s Group and Others’ on preferential basis and the upfront amount of Rs.16.240 Million received on allotment of the Warrants has been utilised for general corporate purposes.

Further, the Company redeemed 50,000, 10% Cumulative Redeemable Preference Shares (Series I) of Rs.100/- each at a premium of Rs.200/- per share, on the due date of redemption i.e. 30th September, 2013.

The performance of the Company during the current year continues to be encouraging and barring unforeseen circumstances, the Directors expect the Company to achieve better results during the year.

MANAGEMENT DISCUSSION AND ANALYSIS

ECONOMY

Global: The global economy continued to report slow growth for yet another year in 2013. According to the World Economic Outlook (January 2014), the global output grew by 3% against 3.1% in 2012. While the first half of the year remained subdued, the second half experienced steady economic strengthening. A number of emerging economies, which had already experienced slowdown over the past two years, encountered new obstacles in 2013 on both domestic and international fronts. Advanced economies recorded a 1.3% growth against 1.4% in 2012. Emerging economies recorded a growth of 4.7% against 4.9% in 2012.

Indian: The Indian economic growth continued to be slow for the second straight year, recording a GDP growth of 4.7% in 2013- 14, compared with 4.5% in 2012-13. Fiscal deficit was recorded at 4.6%, better than the targeted 4.8%. The year FY14 was one of the worst years for manufacturing since 1999-2000, contracting by 0.2% compared with a 1.1% growth in 2012-13. High interest rates capped consumer spending while slow decision-making and land acquisition issues stalled projects and capital expenditure.

GLOBAL PET INDUSTRY

PET bottles are preferred for their convenient handling, durability and reseal ability. They represent increasingly popular packaging for carbonated soft drinks, bottled water, ready-to-drink tea and functional beverages. PET packaging is making inroads into markets for juice, packaged food, household cleaning products and pharmaceuticals, replacing conventional packaging.

The global PET packaging market is estimated at USD 48.1 billion in 2014, amounting to almost 16 million tonnes. An average annual demand of 4.6% over the next five years is projected, resulting in a probable market growth to 19.9 million tonnes, worth an approximate USD 60 billion by 2019.

INDIAN PET INDUSTRY

Asia is the world’s largest and fastest growing plastics market and expected to touch 10 million tonnes by 2020, catalyzed by increasing disposable incomes. A median Indian age of 24 is expected to catalyse the demand for energy drinks, soft drinks and health drinks, among others, resulting in annual PET bottle demand growth of 11%

FIBRE INDUSTRY

Global: The world fibre market with a volume of about 85.4 million tonnes in 2013 is dominated 62% by oil-based synthetic fibres. Cellulosic fibres, which consist of cotton with around 30.2% volume and manmade cellulose fibres, are quality niche products (approximately 6.8%). The smallest share of the global fibre market belongs to cotton with an approximate 1.3% share. Global trends (population growth, increasing prosperity and climate change) and a limited cotton supply could lead to a growing demand for cellulosic fibres. Man-made cellulose fibres should benefit from the cellulose gap. While the global fibre market is expected to expand by about 2.9% annually until 2020, growth in the man-made cellulose fibre market is predicted to increase at 9.1% per annum.

INDIAN FIBRE MARKET, 2013

The Indian textiles industry is set for strong growth, buoyed by both robust domestic consumption and export demand. Abundant availability of raw materials and skilled workforce has made India a major global textiles sourcing hub. The most significant trend in the Indian textiles industry has been the advent of man-made fibres (MMF) and pan-global exports. MMF production increased by about 4% during April-December 2013.

INDUSTRY DRIVERS

Raw material availability: Plastic waste amounting to around 5.600 Million tonnes is generated in Indian metro cities, out of which 6,137 tonnes remains uncollected. On the other hand, PET bottle collection rate in Asia is pegged at 78.2%, thereby giving GESL the opportunity to increase its raw material sourcing.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED ON

31ST DECEMBER 2014

		Particulars	(Rs. In Million)
			Quarter Ended		Nine Months Ended
			31.12.2014	30.09.2014	31.12.2014
			Unaudited	Unaudited	Unaudited
1	Income from Operations
	a) Net Sales/Income from Operations (net of excise duty)		1453.146	1554.0360	4579.912
	b) Other Operating Income		5.632	0.237	5.907
	Total Income from Operations (Net)		1458.778	1554.273	4585.819
2	Expenses
		Cost of Materials consumed	957.901	1000.594	3000.997
		Purchase of stock in-trade	36.697	49.620	125.987
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(48.059)	(15.917)	(66.005)
		Employee benefit expenses	83.725	84.006	243.742
		Depreciation and amortization expense	45.153	41.145	127.154
		Power and Fuel	137.087	139.880	413.175
		Other expenses	139.750	138.742	403.348
	Total Expenses		1352.254	1438.070	4248.398
3		Profit /(Loss) from operations before other income, finance costs and exceptional items (1-2)	106.524	116.203	337.421
4	Other Income		2.491	4.285	11.984
5		Profit /(Loss) from ordinary activities before finance costs and exceptional items (3+4)	109.015	120.488	349.405
6	Finance Costs		46.907	51.752	150.108
7		Profit /(Loss) from ordinary activities after finance costs but before exceptional items (5-6)	62.108	68.736	199.297
8	Exceptional Items		0.000	0.000	0.000
9	Profit /(Loss) from ordinary activities before tax		62.108	68.736	199.297
10	Tax Expense		(15.944)	(0.520)	(23.355)
11	Net Profit /(Loss) from ordinary activities after tax (9-10)		46.164	68.216	175.942
12	Extraordinary items (net of tax expense)		0.000	0.000	0.000
13	Net Profit /(Loss) for the period (11-12)		46.164	68.216	175.942
14	Paid up equity share capital (Eq. shares of Rs.10/- each)		151.860	151.860	151.860
15	Reserve excluding revaluation reserves
16		Earnings per share (before/after extraordinary items) of Rs.10/- each
		Basic	2.31	4.50	10.86
		Diluted	2.01	4.34	10.40
A		PARTICULARS OF SHAREHOLDING
1		Public Shareholding
		- No. of Shares	6576939	6576939	6576939
		- Percentage of Shareholding	43.31	43.31	43.31
2		Promoters and promoter group shareholding
		a) Pledged/Encumbered
		- Number of shares	5016088	6441289	5016088
		- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group)	58.27	74.82	58.27
		- Percentage of shares (as a % of the total share capital of the Company)	33.03	42.42	33.03
		b) Non- encumbered
		- Number of shares	3592973	2167772	3592973
		- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group)	41.73	25.18	41.73
		- Percentage of shares (as a % of the total share capital of the Company)	23.66	14.27	23.66

	Particulars		Quarter ended 31.12.2014
B		Investor Complaints
		Pending at the beginning of the quarter	Nil
		Received during the quarter	4
		Disposed during the quarter	4
		Remaining unresolved at the end of the quarter	Nil

NOTE:

1. The above Financial Results as reviewed by the Audit Committee have been approved by the Board of Directors at its meeting held on 31st January, 2015 Limited review, as required under Clause 41 of the Listing Agreement has been carried out by the Statutory Auditors.

2. The Company is primarily engaged in the business of Synthetic Yarn and Fibre. As the basic nature of these activities is governed by same set of risk and returns these have been grouped as single segment in above disclosures as per Accounting Standard 17 dealing with "Segment Reporting".

3. Commercial production of Recyled Polyester Staple Fibre (RPSF) has been started at Company's unit situated at Temra, Bilaspur, District Rampur (UP), w.e.f. 01.12.2014. The Unit is having installed capacity of 21,000 TPA and taking this into account the consolidated RPSF capacity of the Company will reach to 87,600 TPA

4. The Company has made allotment of 31,07,500 Compulsorily Convertible Preference Shares of Rs. 100/- each convertible into 27,25,877 Equity Shares at a price of Rs. 114/- per Share (including premium of Rs. 104/- per share) and 2,50,000 Warrants convertible into equal number of Equity Shares at a price of Rs 114/- per Share (including premium of Rs. 104/- per share) on 03.10.2014 to MCAP India Fund Limited. (Non-Promoter) on preferential basis. Out of the issue proceeds aggregating to Rs. 317.875 million, amount of Rs. 44.400 million and Rs. 97.000 million have utilised for Capital Expenditure and repayment of term borrowings of the Company, respectively and balance amount of Rs. 176.475 million has been utilised for working capital requirements of the Company.

5. Figures of the corresponding period and previous quarter have been regrouped/re-arranged necessary.

FIXED ASSETS

Tangible Assets

• Freehold Land and Site Development
• Leasehold Land
• Buildings
• Plant and Machinery
• Furniture and Fixtures
• Office Equipments
• Vehicles

Intangible Assets

• Technical Knowhow
• Software

CMT REPORT (Corruption, Money Laundering and 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 records 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.63.19
UK Pound	1	Rs.94.94
Euro	1	Rs.67.66

INFORMATION DETAILS

Information Gathered by :	KMN
Analysis Done by :	DIV
Report Prepared by :	SNT

SCORE and RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	----
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	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		46

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial and 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.