MIRA INFORM REPORT

Report No. :	318884
Report Date :	27.04.2015

IDENTIFICATION DETAILS

Name :	INDO RAMA SYNTHETICS (INDIA) LIMITED
Registered Office :	31-A, MIDC Industrial Area, Butibori, Nagpur – 441 122, Maharashtra
Tel. No.:	91-7104-663000-01
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	28.04.1986
Com. Reg. No.:	11-166615
Capital Investment / Paid-up Capital :	Rs.1518.200 Million
CIN No.: [Company Identification No.]	L17124MH1986PLC166615
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	BPLI00021A
PAN No.: [Permanent Account No.]	AAALI1530L
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Polyester Filament Yarn (PFY), Polyester Staple Fibre (PSF), Draw Texturised Yarn (DTY) and Chips and also engaged in power generation, which is used primarily for captive consumption
No. of Employees :	1500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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 second largest polyester producer in India having satisfactory track. The ratings take into consideration the established track record and market position along with several technical collaborations with companies like DuPont of USA, Toyobo of Japan, Zimmer AG of Germany and more. However, the company possesses a moderate financial profile marked by an acceptable net worth base along with highly accrued trade payables and limited liquid investments outstanding as a result of moderation in the business profile due to change in custom duty rates, high crude price making it difficult for the subject to compete with cotton and the oversupply in the domestic market during FY 2013-14. Management has witnessed a dip in its sales-volume as well as has reported a loss from its operations during FYE14. The rating also take into consideration, the various initiative undertaken by the management, in order to bring the business operation on tack. Moreover currently the situation may change as the crude has slide down relaxed custom duty rates on certain raw materials, promotion of exports and correction seen in the economy leading to positive outlook, may help the subject to attain economies of scale owing to large capacities in coming years, whereas the antidumping duty levied on import of raw material chemical used by the subject may slightly hamper the bottom line. Trade relation are fair. Business is active. Payment terms are reported as slow but correct. In view of established track record of two decades and experienced promoters, the subject can be considered 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities “BBB-”
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	12.03.2015

Rating Agency Name	CARE
Rating	Short term bank facilities “A3”
Rating Explanation	Moderate degree of safety and higher credit risk
Date	12.03.2015

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. Rajesh Saxena
Designation :	General Manager – Finance
Contact No.:	91-7104-663000
Date :	21.04.2015

LOCATIONS

Registered Office/ Factory :	31-A, MIDC Industrial Area, Butibori, Nagpur – 441 122, Maharashtra, India
Tel. No.:	91-7104-663000-01
Fax No.:	91-7104-663200
E-Mail :	sanjayjain@indorama.ind.com naveenc.jain@indorama-ind.com jayant.sood@indorama-ind.com
Website :	http://www.indoramaindia.com
Corporate Office 1 :	20th Floor, DLF Square, DLF Phase II, NH 8, Gurgaon - 122 003, Haryana, India
Tel. No.:	91-124-4997000
Fax No.:	91-124-4997070
E-Mail :	ranvirk.vij@indorama-ind.com reshab.raizada@indorama-ind.com rajiv.dayal@indorama-ind.com corp@indorama-ind.com
Corporate Office 2 :	Dr. Gopaldas Bhawan, 28, Barakhamba Road, New Delhi – 110001, India
Marketing Offices 1 :	G/504, ICB FLORA,  SG Highway, Gota, Ahmedabad - 382481, Gujarat, India
Marketing Offices 2 :	Shop No. G1, G2, Nakoda Textile Tower, Trilok Marg - Gandhinagar,  Bhilwara-311001, Rajasthan, India
Tel. No.:	91-1482-248576
Fax No.:	91-1482-248733
Marketing Offices 3 :	Sarang, 1st Floor, 8/5, Race Course Road, Coimbatore - 641 018,  Tamilnadu, India
Tel. No.:	91-422-2220456
Fax No.:	91-422-2220658
Marketing Offices 4 :	37/3, ‘G Tower’, Perundurai Road, Erode-638011, Tamilnadu, India
Tel. No.:	91-424-2240847
Marketing Offices 5 :	20th Floor, DLF Square, DLF Phase-II, NH-8, Gurgaon - 122 002, Haryana, India
Tel. No.:	91-124-4997000
Fax No.:	91-124-4997070
Marketing Offices 6 :	H.NO. 12-1-1314/A/5, Laxmi Nagar, North Lalaguda, Secunderabad - 500 017, Andhra Pradesh, India
Marketing Offices 7 :	7-C, Kiran Shankar Roy Road, Hastings Chambers, Ground Floor, Room No-GX, Kolkata - 700001, West Bengal, India
Marketing Offices 8 :	B-XIX-122/2, 4th Floor, Golden Plaza, The Mall Road, Ludhiana - 141 001, Punjab, India
Tel. No.:	91-161-2442752 / 5045068
Marketing Offices 9 :	No. 102 / G-1, Kameshwara Apartment, Sathya Sai Nagar Main Road, Madurai - 625003, Tamilnadu, India
Tel. No.:	91-452-2694804
Marketing Offices 10 :	The Metropolitan, 6^th Floor, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051, Maharashtra, India
Tel. No.:	91-22-26571234
Fax No.:	91-22-26571222
Marketing Offices 11 :	L-572, Behind Ram Sharnam, Model Town, Panipat - 132 103, Haryana, India
Marketing Offices 12 :	A/9, 1st Floor, Gurukrupa Business Centre, Opposite Kotak Mahindra Bank, Vapi Main Road, Amli,  Silvassa - 396230, UT of Dadra and Nagar Haveli, India
Tel. No.:	91-260-2643416/17, 2644519
Marketing Offices 13 :	202, Trividh Chambers, Opposite Fire Brigade Station, Ring Road, Surat - 395 002, Gujarat, India
Tel. No.:	91-261-2339368 / 2350701 / 2350687
Marketing Offices 14 :	4/5, Alagappa Complex, 1st Floor, Opposite Tamilnadu Theatres, Palladam Road, Tirupur - 641 604, Tamilnadu, India
Tel. No.:	91-421-2217994

DIRECTORS

As on 31.03.2014

Name :	Mr. Mohan Lal Lohia
Designation :	Chairman Emeritus
DIN No.:	00918397
Name :	Mr. Om Prakash Lohia
Designation :	Chairman and Managing Director
DIN No.:	00206807
Name :	Mr. Vishal Lohia
Designation :	Whole-time Director
DIN No.:	00206458
Name :	Mr. Anant Kishore
Designation :	Whole-time Director and CEO
Name :	Mr. Ashok Kumar Ladha
Designation :	Non-executive Independent Director
DIN No.:
Name :	Mr. Om Prakash Vaish
Designation :	Non-executive Independent Director
Name :	Mr. Arvind Pandalai
Designation :	Non-executive Independent Director
DIN No.:
Name :	Mr. Suman Jyoti Khaitan
Designation :	Non-executive Independent Director
Name :	Mr. Anant Kishore
Designation :	Whole-time Director and CEO
DIN No.:	05262142

KEY EXECUTIVES

Name :	Mr. Jayant Sood
Designation :	Company Secretary
CORPORATE EXECUTIVES
Name :	Mr. Sanjay Syal
Designation :	President and Chief Financial Officer
Name :	Mr. Ajay Gupta
Designation :	Site Head
Name :	Mr. Arvind Gupta
Designation :	Marketing Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2015

Category of Shareholder	Total No. of Shares	% of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	53288568	37.65
Bodies Corporate	4329204	3.06
Sub Total	57617772	40.71
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	961724	0.68
Bodies Corporate	43288057	30.59
Sub Total	44249781	31.26
Total shareholding of Promoter and Promoter Group (A)	101867553	71.98
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	10796	0.01
Financial Institutions / Banks	2252106	1.59
Insurance Companies	4006850	2.83
Foreign Institutional Investors	14044664	9.92
Sub Total	20314416	14.35
(2) Non-Institutions
Bodies Corporate	3154224	2.23
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	7977539	5.64
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	8217950	5.81
Sub Total	19349713	13.67
Total Public shareholding (B)	39664129	28.02
Total (A)+(B)	141531682	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	10290560	0.00
Sub Total	10290560	0.00
Total (A)+(B)+(C)	151822242	0.00

Shareholding belonging to the category "Promoter and Promoter Group"

S. No.	Name of the Shareholder	Details of Shares held		Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
		No. of Shares held	As a % of grand total
1	Brookgrange Investments Limited	4,32,88,057	28.51	28.51
2	O P Lohia	3,53,78,350	23.30	23.30
3	Urmila Lohia	1,58,55,314	10.44	10.44
4	A Lohia	6,61,696	0.44	0.44
5	M L Lohia	3,00,028	0.20	0.20
6	Ritika Kumar	4,14,796	0.27	0.27
7	Aruna Goenka	5,61,652	0.37	0.37
8	Vishal Lohia	2,75,372	0.18	0.18
9	Aradhna Lohia	3,13,256	0.21	0.21
10	Rimple Lohia	2,39,940	0.16	0.16
11	Yashovardhan Lohia	2,49,888	0.16	0.16
12	Indo Rama Retail Holdings Private Limited	20,00,000	1.32	1.32
13	Lohia Industries Private Limited	23,29,204	1.53	1.53
	Total	10,18,67,553	67.10	67.10

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

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	APMS Investment Fund Limited	12652175	8.33	8.33
2	Life Insurance Corporation of India	3005152	1.98	1.98
3	IFCI Limited	2150342	1.42	1.42
	Total	17807669	11.73	11.73

Shareholding of securities (including shares, warrants, convertible securities) of persons (together with PAC) belonging to the category “Public” and holding more than 5% of the total number of shares of the company

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	APMS Investment Fund Limited	12652175	8.33	8.33
	Total	12652175	8.33	8.33

BUSINESS DETAILS

Line of Business :

Manufacturer of Polyester Filament Yarn (PFY), Polyester Staple Fibre (PSF), Draw Texturised Yarn (DTY) and Chips and also engaged in power generation, which is used primarily for captive consumption

Products :

Item Code No. (ITC Code)	Product Description
55032000	Polyester Staple Fibre
54024200	Polyester Filament Yarn Partially Oriented
54023300	Draw Texturised Yarn of Polyester

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Products :

Finished goods

Countries :

• Europe
• Middle East
• Asian Countries
• Gulf
• South Africa
• USA
• UK

Imports :

Products :

Raw material

Countries :

• Middle East
• South East
• Asia

Terms :

Selling :

Not Divulged

Purchasing :

Not Divulged

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 :

1500 (Approximately)

Bankers :

¨ Axis Bank Limited

¨ Bank of India

¨ HDFC Bank Limited

¨ Oriental Bank of Commerce

¨ Punjab National Bank

¨ State Bank of Travancore

¨ IKB Deutsche Industriebank AG

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG TERM BORROWINGS
Loans and advances from banks
Rupee loans	918.200	157.400
Foreign currency loans	810.200	1120.800
Other loans and advances
Foreign currency loans	0.000	197.500
SHORT TERM BORROWINGS
Loans repayable on demand
Cash credit and working capital facilities	2458.500	3427.200
Total	4186.900	4902.900

Auditors :
Name :	B S R and Associates Chartered Accountants
Address :	Gurgaon, Haryana, India
Wholly owned subsidiaries :	¨ Indo Rama Renewables Limited (‘IRRL’) ¨ Indo Rama Renewables Porbandar Limited ¨ Indo Rama Renewables Ramgarh Limited ¨ Indo Rama Renewables Jath Limited
Enterprises over which key management personnel or their relatives have significant influence :	¨ Indo Rama Petrochem Limited (IRPL), Thailand ¨ T P T Petrochemicals PCL (TPT Petro), Thailand ¨ P.T. Indo Rama Synthetics TBK, Jakarta
Enterprises having significant influence :	¨ Brookgrange Investments Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
185000000	Equity Shares	Rs.10/- each	Rs.1850.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
151822242	Equity Shares	Rs.10/- each	Rs.1518.200 Million

1. During the current year and in the previous year, there have been no movements in the number of outstanding

equity shares.

2. The Company has only one class of equity shares, having a par value of ` 10 per share. Each shareholder is eligible to one vote per share held, except for shares held against Global Depository Receipts (GDR). The dividend proposed, if any, by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. The repayment of equity share capital in the event of liquidation and buy back of shares are possible subject to prevalent regulations. In the event of liquidation, normally the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

3. Shares in the Company held by each shareholder holding more than 5% shares (also refer to footnote 4) are asunder:-

Name of the Shareholder	No. of Shares	Percentage held
Brookgrange Investments Limited	43,288,057	28.51
Mr. O. P. Lohia (Chairman and Managing Director)	35,014,630	23.06
Mrs. Urmila Lohia	15,855,314	10.44
Mavi Investments Limited	12,652,175	8.33

4. Above equity shares of ` 10 each include 10,291,360 equity shares (representing 6.78% of total number of shares), outstanding against 1,286,420 Global Depository Receipts (GDR), each GDR comprising 8 underlying fully paid up equity shares of ` 10 each [previous year 10,291,360 equity shares (representing 6.78% of total number of shares), outstanding against 1,286,420 GDRs].

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	1518.200	1518.200	1518.200
(b) Reserves & Surplus	4418.900	4566.300	4475.100
(c) Money received against share warrants	0.000	203.000	203.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	5937.100	6287.500	6196.300
(3) Non-Current Liabilities
(a) long-term borrowings	1728.400	1475.700	1957.600
(b) Deferred tax liabilities (Net)	1860.300	2070.900	2133.700
(c) Other long term liabilities	8.300	8.400	7.800
(d) long-term provisions	181.400	149.300	147.500
Total Non-current Liabilities (3)	3778.400	3704.300	4246.600
(4) Current Liabilities
(a) Short term borrowings	2458.500	3427.200	2572.000
(b) Trade payables	5306.500	5360.300	5561.000
(c) Other current liabilities	1481.400	1341.200	2232.300
(d) Short-term provisions	204.300	278.500	236.800
Total Current Liabilities (4)	9450.700	10407.200	10602.100
TOTAL	19166.200	20399.000	21045.000
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	10592.900	11720.800	12732.500
(ii) Intangible Assets	4.300	9.400	12.300
(iii) Capital work-in-progress	1.700	26.500	265.700
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	369.900	369.900	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	1198.200	805.100	532.200
(e) Other Non-current assets	76.100	196.100	100.400
Total Non-Current Assets	12243.100	13127.800	13643.100
(2) Current assets
(a) Current investments	41.900	103.000	148.300
(b) Inventories	2936.100	3036.000	3636.000
(c) Trade receivables	1117.900	875.300	960.500
(d) Cash and cash equivalents	429.400	369.400	309.700
(e) Short-term loans and advances	807.800	1399.600	1021.400
(f) Other current assets	1590.000	1487.900	1326.000
Total Current Assets	6923.100	7271.200	7401.900
TOTAL	19166.200	20399.000	21045.000

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	26291.200	29101.300	29688.000
		Other Income	2440.100	2407.800	2072.600
		TOTAL	28731.300	31509.100	31760.600
Less	EXPENSES
		Cost of Materials Consumed	21250.700	24266.200	22789.800
		Purchases of Stock-in-Trade	0.000	4.600	0.000
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	905.700	84.600	1594.000
		Employees benefits expense	844.100	812.400	736.000
		Other expenses	3284.900	3516.800	3450.200
		Exceptional items	995.100	392.600	652.500
		TOTAL	27280.500	29077.200	29222.500
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		1450.800	2431.900	2538.100
Less	FINANCIAL EXPENSES		352.300	445.100	612.200
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		1098.500	1986.800	1925.900
Less/ Add	DEPRECIATION/ AMORTISATION		1351.200	1579.900	1543.600
	PROFIT/ (LOSS) BEFORE TAX		(252.700)	406.900	382.300
Less	TAX		(170.900)	(5.700)	62.700
	PROFIT/ (LOSS) AFTER TAX		(81.800)	412.600	319.600
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2081.900	1846.900	1703.700
Less	APPROPRIATIONS
		Interim dividend	151.800	151.800	151.800
		Proposed dividend	25.800	25.800	24.600
	BALANCE CARRIED TO THE B/S		1822.500	2081.900	1846.900
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	6856.200	7498.600	8449.500
		Dividend	28.800	104.600	211.400
		Sale of current investments (Gross consideration)	2418.600	2080.700	1755.800
	TOTAL EARNINGS		9303.600	9683.900	10416.700
	IMPORTS
		Raw Materials	16258.400	14991.600	14948.700
		Packing Material	0.000	1.500	10.000
		Stores & Spares	90.600	61.500	16.600
		Capital Goods	5.200	36.600	444.400
	TOTAL IMPORTS		16354.200	15091.200	15419.700
	Earnings / (Loss) Per Share (Rs.)		(0.54)	2.72	2.11

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	(0.31)	1.42	1.08
Operating Profit Margin (PBDIT/Sales)	(%)	5.52	8.36	8.55
Return on Total Assets (PBT/Total Assets}	(%)	(1.34)	2.03	1.84
Return on Investment (ROI) (PBT/Networth)		(0.04)	0.06	0.06
Debt Equity Ratio (Total Debt/Networth)		0.71	0.78	0.73
Current Ratio (Current Asset/Current Liability)		0.73	0.70	0.70

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	1518.200	1518.200	1518.200
Reserves & Surplus	4475.100	4566.300	4418.900
Money received against share warrants	203.000	203.000	0.000
Net worth	6196.300	6287.500	5937.100
long-term borrowings	1957.600	1475.700	1728.400
Short term borrowings	2572.000	3427.200	2458.500
Total borrowings	4529.600	4902.900	4186.900
Debt/Equity ratio	0.731	0.780	0.705

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	29688.000	29101.300	26291.200
		(1.976)	(9.656)

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	29688.000	29101.300	26291.200
Profit	319.600	412.600	(81.800)
	1.08%	1.42%	(0.31%)

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG TERM DEBT

Particular	31.03.2014	31.03.2013	31.03.2012
Current maturities of long-term debt	923.300	757.500	1342.500
Total

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
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	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

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10468964	03/01/2014	250,000,000.00	State Bank of Travancore	Commercial Branch , Travancore Palace, K.G Marg, New Delhi, Delhi - 110001, INDIA	B93028843
2	10461775	31/07/2014 *	150,000,000.00	SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA	NATIONAL INSURANCE BUILDING, GROUND FLOOR, S.V.PATEL MARG, KINGSWAY, NAGPUR, Maharashtra - 440001,  INDIA	C16084915
3	10341105	20/01/2012	240,000,000.00	ORIENTAL BANK OF COMMERCE	E-Block, Harsha Bhawan,, Connaught Place, New Delhi, Delhi - 110001, INDIA	B34538363
4	10062641	30/07/2012 *	850,000,000.00	STATE BANK OF TRAVANCORE	Commercial Branch,, Travancore House, K. G. Marg, New Delhi, Delhi - 110001, INDIA	B56359409
5	90210703	19/12/2006 *	952,496,718.75	IKB DEUTSCHE INDUSTRIEBANK AG	Wilhelm-Botzkes-Str.1, 40474 Dusseldorf., Federal  Republic of Germany, Dusseldorf, - 40474, GERMANY	-
6	80016714	19/12/2006 *	1,742,755,000.00	IKB DEUTSCHE INDUSTRIEBANK AG	Wilhelm-Botzkes-Str.1, 40474 Dusseldorf., Federal  Republic of Germany, Dusseldorf, - 40474, GERMANY	-
7	80016712	19/12/2006 *	222,343,000.00	IKB DEUTSCHE INDUSTRIEBANK AG	Wilhelm-Botzkes-Str.1, 40474 Dusseldorf., Federal  Republic of Germany, Dusseldorf, - 40474, GERMANY	-
8	90209638	30/07/2012 *	750,000,000.00	PUNJAB NATIONAL BANK	15-17, Large Corporate Branch , Tolstoy House,  New Delhi, Delhi - 110066, INDIA	B56385412
9	80016709	30/07/2012 *	1,900,000,000.00	Oriental Bank of Commerce	85-A, Rishyamook Building, Panchkuian Road, New  Delhi, Delhi - 110001, INDIA	B56643711
10	90209563	20/03/2014 *	2,208,200,000.00	Bank of India	New Delhi Large Corporate Branch, 10th Floor, Chanderlok Building, 36,Janpath, New Delhi, Delhi- 110001, INDIA	C05650304

* Date of charge modification

GENERAL INFORMATION

Indo Rama Synthetics (India) Limited (hereinafter referred to as ‘the Company’ or ‘IRSL’) is a manufacturer of Polyester Filament Yarn (PFY), Polyester Staple Fibre (PSF), Draw Texturised Yarn (DTY) and Chips. The Company is also engaged in power generation, which is used primarily for captive consumption. The Company’s manufacturing facilities are located at Butibori, Nagpur.

OPERATIONAL AND FINANCIAL REVIEW

During the year under report, the Company recorded gross revenue of Rs. 28610.000 Million as against Rs. 31664.000 Million In previous year. EBIDTA is Rs. 2446.000 Million as against Rs.2825.000 Million last year. Loss after Tax stood at Rs. 81.800 Million as against Profit of Rs.412.600 Million for the previous year.

The year 2013-14, was one of the most challenging years in the recent past. The Indian economy passed through a difficult phase with business activities on a lower side for most of the sectors due to depreciation in the value of rupee, rising crude oil prices and increasing raw material costs. Adding to the weak demand, production was also hampered due to the lack of adequate raw material.

The Company focused on widening product basket, optimising raw material usage, rationalising costs, accelerating global forays and enhancing people capabilities. These initiatives will help sustain the difficult times and grow their core strengths.

The demand for man-made fibres is showing signs of improvement and we are hopeful that the demand for polyester will see revival. Polyester demand will be driven by its growing relevance in daily life across home textiles, apparel, automotive, furnishing fabrics, technical textile and non-woven segments.

Going ahead, with demand going up both in the Domestic and International Market, they are hopeful that they will be able to utilise higher production capacity and grow business volumes.

MANAGEMENT DISCUSSION AND ANALYSIS

Global Economy

The global economic environment has broadly strengthened, with modestly better consumer and investment sentiments and less inherent fragilities. It is likely to improve further, with much of the growth impetus emanating from advanced economies. However, one disturbing trend is that global growth pattern still remains uneven with a stronger US economy, subdued growth in the Euro Area and Japan and slowdown in the Emerging Markets and Developing Economies (EMDC). China’s leadership has now adopted a more balanced growth paradigm with enhanced focus on the services sector. Such an approach may augur well for the Chinese economy in the foreseeable future. If they take a macro perspective, full global recovery remains a distant prospect. However, the journey has already begun in right earnest.

Indian Economy

India’s economy faced multiple roadblocks to growth in the form of persistently high inflation, sluggish industrial production, discouraging agricultural output, modest investment in infrastructure and stalled projects owing to bureaucratic hassles and no definite agenda towards reforms. However, the new Central Government is expected to accelerate the pace of reforms and help enhance investor confidence. It is estimated that the country’s GDP will grow by 5.4% in 2014-15, compared to 4.7% in 2013-14 (Source: IMF).

Rapid implementation of Goods and Services Tax (GST) and further reduction in fiscal deficit are expected to be some of the key thrust areas for the new government. Such an approach is expected to pave the way for the country to achieve 7-7.5% growth.

The depreciation of the Indian rupee last year gave a fillip to India’s export industry. Moreover, the foreign trade policy (FTP) for 2014-19 is likely to be rolled out soon to promote exports and narrow down trade deficit.

FIBRE INDUSTRY SCENARIO

Global Fibre Industry

Global fibre production rose by an estimated 1.6% in 2013 from 84 million tonnes to 85.4 million tonnes. The growth is largely due to the higher production volumes of textiles fibres in China. The marginal growth in volumes is attributed to weak global economy and weak demand. The MMF production reached a new level of 58.5 million tonnes, up from 56.0 million tonnes, a 4.3% escalation. The polyester fibre accounted for an estimated 44 million tonnes registering an increase of 5.5% in volumes. The polyester fibre accounts for 51.5% of total fibre volumes and 75% of MMF fibres. The cellulosic fibre production went up by 9.6% for the year under consideration at an estimated 5.8 million tonnes. The Polyamide or Nylon increased by an estimated 3.9% and Polypropylene marginally increased by 1%. China accounted for the highest growth at 10.8% in MMF production to 38.5 million tonnes in 2013 from 35.5 million tonnes in 2012.

Cotton fibre global production is estimated to decline by 5.2% to a level of 25.4 million tonnes in 2013-14 compared to 26.8 million tonnes in 2012-13. Cotton inventory rose by 8.2% at estimated 21.1 million tonnes. The end use stock ratio stands at 88.5%. (USDA, April 2014)

Synthetic fibres accounted for 62%, cotton 30%, manmade cellulosic fibres 6.8% and wool 1.3% of 85.4 million tonnes of fibres produced in 2013, as per the estimates of CIRFS and The Fibre Year.

Indian Fibre Industry

India’s fibre demand is estimated at 8.4 million tonnes in 2013, compared with 8.0 million tonnes in 2012, a 5% escalation. Cotton demand went up by 3.2% from 4.64 million tonnes in 2012 to 4.79 million tonnes in 2013, polyester fibre estimated demand went up by 7.5% at 3.2 million tonnes. Viscose fibre rose by estimated9% from 0.30 million tonnes to 0.33 million tonnes. Acrylic fibre continued to make recovery, up by 17% from 0.096 million tonnes in 2012 to 0.11 million tonnes in 2013. The polyester fibre accounted for 37% and cotton accounted for 57% of India’s total fibre demand. Together cotton and polyester fibre accounts for 94% of the demand.

CONTINGENT LIABILITIES NOT PROVIDED FOR:

Particulars	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
Excise / customs / service tax matters in dispute/ under appeal	631.900	3036.100
Income tax matters in dispute/ under appeal	155.200	175.300
Sales tax matters in dispute/ under appeal	64.600	60.700
Claims by ex-employees, vendors, customers and civil cases	7.100	6.100

FIXED ASSETS

œ Land (Freehold and Leasehold)

œ Roads and Buildings

œ Plant and Machinery

œ Furniture and Office Equipments

œ Vehicles

œ Software

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31^st DECEMBER 2014

(Rs. in million)

PART I

Sr. No.	Particulars	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)	6488.000	7168.100	20708.800
	(b) Other Operating Income	107.800	110.200	318.300
	Total Income from Operations (net)	6595.800	7278.300	21027.100
2	Expenses
	(a) Cost of materials consumed	5209.500	6306.400	17126.400
	(b) Purchases of stock-in-trade	285.500	-700.700	-399.900
	(c) Employee benefits expense	235.400	223.600	687.800
	(d) Other expenses	939.800	1149.200	2981.800
	Total Expenses	6670.200	6978.500	20396.100
3	Profit / (Loss) from Operations before other income, finance costs and exceptional items (1-2)	74.400	299.800	631.000
4	Depreciation and Amortision Expenses	272.000	327.000	909.100
5	Total expenses after depreciation and amortization but before finance costs and exceptional items (2+4)	6942.200	7305.500	21305.200
6	Profit / (Loss) from operations before other income, finance costs and exceptional item (1-5)	(346.400)	(27.200)	(278.100)
7	Other income	31.500	70.300	161.100
8	Profit from ordinary activities before finance costs and exceptional items (6+7)	(314.900)	43.100	(117.000)
9	Finance Costs	114.600	115.500	330.800
10	Profit / (Loss) from ordinary activities after finance costs but before exceptional items (8-9)	(429.500)	(72.400)	(447.800)
11	Exceptional Items
	Foreign exchange fluctuation (loss)/gain	(92.200)	(132.400)	(108.500)
	Loss on account of write down of inventories	(207.500)	--	(207.500)
12	(Loss)/Profit from ordinary activities before tax (10+11)	(729.200)	(204.800)	(763.800)
13	Income Tax Expense/ (Credit)	(145.200)	(44.600)	(240.100)
14	Net Profit / (Loss) for the period (12-13)	(584.000)	(160.200)	(523.700)
15	Paid-up Equity Shares Capital (Face value of Rs.10/- each)	151.820	151.820	151.820
16	Reserves excluding Revaluation Reserve as per Balance Sheet of Previous Year	--	--	--
	- Basic and Diluted (in Rupees, not annualized)	(3.85)	(1.06)	(3.45)
PART II
A	PARTICULARS OF SHAREHOLDING
1	Public shareholding
	- No of shares	50318409	50318409	50318409
	- Percentage of shareholding	33.14%	33.14%	33.14%
2	Promoters and promoter group shareholding
	a) Pledged / Encumbered
	- No of shares	--	--	--
	- Percentage of shares (as a % of the total shareholding of promoters and promoter group	--	--	--
	- Percentage of shares (as a % of the total share capital of the company)	--	--	--
	b) Non-encumbered
	- No of shares	101503833	101503833	101503833
	- Percentage of shares (as a % of the total shareholding of promoters and promoter group	100.00%	100.00%	100.00%
	- Percentage of shares (as a % of the total share capital of the company)	66.86%	66.86%	66.86%

B	INVESTOR COMPLAINTS	3 months ended as on 31.12.2014
	Pending at the beginning of the quarter	Nil
	Received during the quarter	14
	Disposed of during the quarter	14
	Remaining unresolved at the end of the quarter	Nil

Notes :

1. During the quarter ended 31 December 2014, due to exceptional and unprecedented fall in global prices of crude oils and consequent raw material prices i.e. PTA and MEG, the operational EBIDTA of the Company is estimated to be lower by Rs. 330.800 Million for the quarter ended 31 December 2014, which is exceptional in nature. The loss incurred has been primarily due to the timing difference in the prices at which the materials have been purchased and sold.

2. The Company has made an early application, since the year 2010-11, of Accounting Standard 30 “Financial Instruments - Recognition and Measurement”, issued by the Institute of Chartered Accountants of India for accounting of forward exchange contracts taken for highly probable/forecast transactions, which are not covered by Accounting Standard-11. Expenses aggregating Rs. 89.900 crores and Rs. 216.700 Million have been recognized as expense in the financial results for the quarter and the nine month ended 31 December 2014 respectively and included in exceptional items as an adjustment on the said application of Accounting Standard 30.

3. Due to significant volatility in the foreign currency vis-a-vis local currency, the Company has considered the foreign exchange fluctuation as an exceptional item. Also, the exceptional loss of Rs. 207.500 Million on account of write down of inventories is primarily due to unprecedented fall in global prices of crude oil during the quarter ended 31 December 2014.

4. The Company’s business comprises of Polyester products, which has linkage with crude oil prices and also subject to foreign exchange fluctuations. In the last few years, due to volatility in crude oil prices and foreign exchange fluctuations, the Company’s realised margin has been lower. Based on the projected business plan and investment in balancing equipment, the Company believes to improve the profitability over the next few years. The Company is confident that the MAT credit entitlement carried at the end of the period is fully recoverable, and therefore no provision is required for impairment of assets.

5. During the quarter and the nine month ended 31 December 2014, based on internal technical evaluation, management reassessed the remaining useful life of assets, primarily consisting of buildings and plant and machinery with effect from 1 April 2014. Accordingly, the useful life of assets does not require a change from the previous estimates.

6. Pursuant to an alignment with the requirements of the Companies Act, 2013, the Company has not recouped the additional depreciation on account of revaluation and, therefore, has charged it to the results of the period. Accordingly, the loss for the quarter and the nine months ended 31 December 2014 is higher by Rs. 23.600 Million and Rs. 57.300 Million respectively.

7. The Company’s business activity falls within a single primary business segment viz. ‘Polyester’.

8. Previous period figures have been regrouped / recast, wherever necessary, to make them comparable.

9. The Audit Committee reviewed the above results. The Board of Directors, at their meetings held on 13 February 2015, have approved the above results.

10. The Statutory Auditors of the Company have carried out a Limited Review of the financial results for the quarter and the nine months ended 31 December 2014 and unqualified opinion has been issued. The review report of statutory auditors is being filed with Bombay and National Stock Exchanges.

PRESS RELEASE

Indo Rama Synthetic (India) Ltd Reports Financial Result for the Quarter and Half Year Ended September 30, 2014

New Delhi, November 13, 2014:

Indo Rama Synthetics (India) Limited, India's largest dedicated polyester manufacturer, today announced its financial results for the Quarter and Half Year ended September 30, 2014.

For the quarter ended September 30, 2014, net sales stood at Rs.7168.100 Million as against Rs 619.980 of Q2 of previous year.  The Operational EBIDTA for the period stood at Rs.299.800 Million. 

The polyester industry is undergoing a very challenging phase due to the economic environment created after the imposition of Anti-Dumping Duty on PTA by the government which has resulted in an increase in the cost of raw material.

For the Half Year ended September 30, 2014, net sales stood at Rs.14220.800 Million as against Rs.13262.400 of Q2 of previous year. The Operational EBIDTA for the period stood at Rs.705.300 Million.  Net profit for the period stood at Rs.60.300 Million.

Commenting on the company's performance, Mr. O. P. Lohia, Chairman & Managing Director, Indo Rama Synthetics (India) Limited. said,

"As one of the leading player in market, our performance reflects the industry situation.  While the sentiment around business environment is showing signs of improvement, the duty structure on PTA is hampering the growth of the domestic polyester industry.

We look forward to positive policy framework under the Make-In-India campaign and expect policy support in order to help the domestic polyester industry in showcasing its capability and prowess to deliver better returns to all the stakeholders."

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 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.63.40
UK Pound	1	Rs.95.42
Euro	1	Rs.68.48

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	SUB
Report Prepared by :	JYTK

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	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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		43

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.