MIRA INFORM REPORT

Report No. :	337000
Report Date :	14.08.2015

IDENTIFICATION DETAILS

Name :	GTN TEXTILES LIMITED

Registered Office :	Door No. VIII/ 911, Erumathala Post, Aluva, Ernakulam - 683105, Kerala
Tel. No.:	91-484-3080100

Country :	India

Financials (as on) :	31.03.2015

Date of Incorporation :	28.03.2005

Com. Reg. No.:	09-018062

Capital Investment / Paid-up Capital :	Rs.116.405 Million

CIN No.: [Company Identification No.]	L18101KL2005PLC018062

IEC No.:	1005007349

TAN No.: [Tax Deduction & Collection Account No.]	Not Available

PAN No.: [Permanent Account No.]	AACCG3925B

Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

Line of Business :	Subject is mainly engaged in manufacture and exports of cotton yarn.

No. of Employees :	927 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	Slow but Correct

Litigation :	Clear

Comments :	Subject is an established company having moderate track record. The company possesses moderate operational performance and it has incurred loss from its operational activities during financial year 2015. Rating further constrained on account of company’s moderate financial risk profile marked by modest networth and leverage balance sheet profile of the company. However, trade relations are reported as fair. Payments are reported to be slow but correct. In view of operational loss, the company can be considered for business dealing with some caution.

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 – March 31, 2015

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

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	CRISIL
Rating	Long term bank facilities = BB-
Rating Explanation	Inadequate credit quality and high credit risk.
Date	April 10, 2015

Rating Agency Name	CRISIL
Rating	Short term bank facilities = A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	April 10, 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 31-03-2013.

INFORMATION DENIED BY

Name :	Mr. Girish
Designation :	Accounts Department
Contact No.:	91-22-32060265
Date :	13.08.2015

LOCATIONS

Registered Office / Factory :	Door No. VIII/ 911, Erumathala Post, Aluva, Ernakulam - 683105, Kerala, India
Tel. No.:	91-484-3080100
Fax No.:	91-484-2838585
E-Mail :	cs@gtntextiles.com
Website :	www.gtntextiles.com

Head/ Marketing Office :	3^rd Floor, Palal Towers, M.G. Road, Ravipuram, Kochi – 682016, Kerala, India
Tel. No.:	91-484-3928300
Fax No.:	91-484-2370812/ 3928380
E-Mail :	cs@gtntextiles.com

Corporate Office :	43, 4^th Floor, Mittal Chambers, 228 Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-32060265/ 32060266
Fax No.:	91-22-22874144
E-Mail :	mumbai@gtntextiles.com

DIRECTORS

As on 31.03.2015

Name :	Mr. B K Patodia
Designation :	Chairman and Managing Director

Name :	Mr. B L Singhal
Designation :	Independent Director
Date of Birth/Age :	15.04.1947
Qualification :	B.Com, FCA
Expertise in specific functional area :	B.L SInghal, aged 67 years is a Graduate in Commerce and Fellow member of the Institute of Chartered Accountants of India (ICAI) and Senior Partner of B.L Singhal and Company, Chartered Accountants, Kolkata. He has vast experience in Finance, Company Law matters besides proficiency in Accountancy.
Date of Appointment :	08.04.2005

Name :	Mr. Prem Malik
Designation :	Independent Director
Date of Birth/Age :	03.02.1942
Qualification :	Post Graduate, Punjab University
Expertise in specific functional area :	Prem Malik, aged 72 years, is a post graduate from Punjab University and is having over 5 decades of experience in textiles and clothing. He had worked as Executive Director of main Board of Mafatlal Fine Spinning and Manufacturing Company Limited and M/s Bombay Dyeing and Manufacturing Company Limited. Presently, he is a Textile Consultant/Advisor. He is the Chairman of Confederation of Indian Textile Industry and Bombay Textiles Research Association and is the Vice Chairman of India ITME Society. He is a member/director of Textile Committee, Ministry of Textiles, and Government of India. He was Past Chairman of Texprocil and a Past Vice Chairman of the Synthetic Rayon Textile Export Promotion Council.
Date of Appointment :	28.10.2006

Name :	Mahesh C. Thakker
Designation :	Additional Director
Date of Birth/Age :	07.09.1964
Qualification :	Graduate
Expertise in specific functional area :	Mahesh C Thakker is aged 50 years, and is the Managing Director of Purav Trading Limited. He is also partner in Perfect Cotton Company, Mumbai and Patcot Company, Mumbai. These Company / firms are mainly engaged in raw cotton procurement. He is having more than 25 years of experience in raw cotton procurement line.
Date of Appointment :	31.10.2013
Other Directorship :	Purav Trading Limited

Name :	S. Sundareshan
Designation :	Independent Director
Date of Birth/Age :	28.10.1952
Qualification :	M.A,M.B.A,I.A.S
Expertise in specific functional area :	S.Sundareshan, aged 61 years and did his Masters from University of Mumbai before joining the 1976 batch of Indian Administrative Service. He has worked at senior level in the Ministry of Heavy Industries & Public Enterprises as Secretary, Department of Heavy Industries since May,2011 onwards to October 2012 and Ministry of Petroleum & Natural Gas as Secretary, Special Secretary and Additional Secretary since April-2007. During the period from April, 2007 to May, 2011, he was on the Boardof ONGC, GAIL India Ltd and IOC. He was also Chairman of Petronet LNG Ltd. He has also been Chairman, Forward Markets Commission, putting in place necessary regulation and structures for the growth of Commodities Futures market. An MBA from University of Leeds, UK, Shri Sundareshan has held several important positions in the Government of India including Joint Secretary in the Department of Economic Affairs (Ministry of Finance), Minister (Economic and Commercial), Embassy of India, Tokyo, Japan, Joint Chief Controller of Imports & Exports (Ministry of Commerce) and Deputy Secretary, Ministry of Environment, Government of India. He has handled important assignments in his cadre State Kerala. These include Principal Secretary (Revenue), Secretary (Department of Expenditure), District Collector in kerala, Managing Director (MD), Kerala State Milk Marketing Federation, MD, Kerala Fisheries Corporation.
Date of Appointment :	19.09.2014

Name :	Pamela Anna Mathew
Designation :	Additional Director (w.e.f.17.03.2015)

KEY EXECUTIVES

Name :	Mr. Girish
Designation :	Accounts Department

Name :	E. K. Balakrishan
Designation :	Vice President (Corporate Affairs) and Company Secretary

Name :	A. K. Warerkar
Designation :	Vice President (Finance) and Chief Financial Officer

SHAREHOLDING PATTERN

As on 30.06.2015

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	5022089	43.14
Bodies Corporate	2228349	19.14
Sub Total	7250438	62.29
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	7250438	62.29
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1686	0.01
Financial Institutions / Banks	42	0.00
Insurance Companies	87377	0.75
Foreign Institutional Investors	1900	0.02
Any Others (Specify)	800	0.01
Sub Total	91805	0.79
(2) Non-Institutions
Bodies Corporate	224188	1.93
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	2789971	23.97
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	1234829	10.61
Any Others (Specify)	49247	0.42
Non Resident Indians	6512	0.06
Clearing Members	42635	0.37
Others	100	0.00
Sub Total	4298235	36.92
Total Public shareholding (B)	4390040	37.71
Total (A)+(B)	11640478	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	11640478	100.00

BUSINESS DETAILS

Line of Business :	Subject is mainly engaged in manufacture and exports of cotton yarn.

Products :	Cotton Yarn

Brand Names :	Not Available

Agencies Held :	Not Available

Exports :	Not Divulged

Imports :	Not Divulged

Terms :
Selling :	Not Divulged

Purchasing :	Not Divulged

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

927 (Approximately)

Bankers :

Banker Name	Central Bank of India
Branch Address	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

· State Bank of India

· Export-Import Bank of India

· State Bank of Travancore

· Bank of India

Axis Bank Limited

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2015	As on 31.03.2014
LONG TERM BORROWING
Term Loans
From Banks	203.263	238.762
From Financial Institution	19.250	22.500
Finance Lease Obligations From Banks	1.210	0.913
SHORT TERM BORROWING
Loan Repayable on demand
From Banks- Working Capital Facilities	390.072	309.807
Total	613.795	571.982
Note: LONG TERM BORROWING Term loans borrowed from Banks and Financial Institution and total outstanding of Rs.308.026 Million (Previous year - Rs.365.152 Million) are secured by first charge by way of equitable mortgage on all immovable assets both present and future and hypothecation of all the movable assets of the Company (excluding assets purchased on hire purchase basis), subject to prior charges in favour of Banks for working captital, ranking pari pasu interse. In the above mentioned Term Loans from certain Banks are further secured by personal guarantee given by Chairman and Managing Director of the Company to the extent of Rs.131.288 Million (Previous year end - Rs.124.296 Million). SHORT TERM BORROWING Working Capital Loans from Banks are secured by first charge by way of hypothecation of current assets, and further secured/to be secured by way of second charge on all immovable assets, both present and future and on all movable assets of the company (excluding assets purchased on hire purchase basis), ranking pari passu interse,and also guaranteed by Chairman and Managing Director of the Company.

Auditors :
Name :	M S Jagannathan and Visvanathan Chartered Accountants
Address :	67A, Sri Krishna Krupa, P and T Colony, Main Road, Kavundampalayam, Coimbatore – 641031, India
Tel. No.:	91-422-2402365 / 2402848 / 2403861
E-Mail :	msjv1920@gmail.com

Legal Advisors :
Name :	Menon and Pai
Address :	Kochi, Kerala, India

Memberships :	Not Available

Collaborators :	Not Available

Associates :	Patspin India Limited

Company in which Directors are holding more than 2% of shareholding :	GTN Enterprises Limited

CAPITAL STRUCTURE

As on 31.03.2015

Authorised Capital:

No. of Shares	Type	Value	Amount

12000000	Equity Shares	Rs.10/- each	Rs.120.000 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount

11640478	Equity Shares	Rs.10/- each	Rs.116.405 Million

Reconciliation of Number of Shares

Particulars	As at March 31, 2015
Equity Shares	No. of Shares	Amount in Million
Balance as at the beginning of the year	11640478	116.405
Add: Shares issued during the year	0.000	0.000
Balance as at the end of the year	11640478	116.405

Details of shares held by shareholders holding more than 5% of the aggregate shares in the Company

Particulars	As at March 31, 2015
Particulars	No. of Shares	% of holding
Binod Kumar Patodia	1195580	10.27
Umang Patodia	835120	7.17
Ankur Patodia	732331	6.29
Prabha Patodia	682418	5.86
Binod Kumar Patodia HUF	1158880	9.96
Beekaypee Credit Private Limited	822311	7.06
Patodia Exports and Investments Private Limited	672986	5.78
Umang Finance Private Limited	733052	6.30

There was no issue of shares allotted as fully paid up shares pursuant to contract(s) without payment being received in cash or buy back or bonus shares in the preceding five years

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014	31.03.2013

I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	116.405	116.405	116.405
(b) Reserves & Surplus	156.413	188.938	169.407
(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)	272.818	305.343	285.812

(3) Non-Current Liabilities
(a) long-term borrowings	223.723	263.735	320.236
(b) Deferred tax liabilities (Net)	26.896	41.859	22.159
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	250.619	305.594	342.395

(4) Current Liabilities
(a) Short term borrowings	390.072	309.807	299.770
(b) Trade payables	231.964	444.839	337.789
(c) Other current liabilities	156.851	168.923	219.230
(d) Short-term provisions	12.323	10.506	10.310
Total Current Liabilities (4)	791.210	934.075	867.099

TOTAL	1314.647	1545.012	1495.306

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	505.644	565.536	599.226
(ii) Intangible Assets	1.408	1.492	1.675
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	198.492	198.492	198.492
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	19.258	16.430	10.443
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	724.802	781.950	809.836

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	361.295	389.115	387.109
(c) Trade receivables	129.300	224.518	162.518
(d) Cash and cash equivalents	14.248	62.085	54.769
(e) Short-term loans and advances	84.056	85.074	78.767
(f) Other current assets	0.946	2.270	2.307
Total Current Assets	589.845	763.062	685.470

TOTAL	1314.647	1545.012	1495.306

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	SALES
	Income	1859.779	2861.184	2093.866
	Other Income	7.325	6.167	3.530
	TOTAL	1867.104	2867.351	2097.396

Less	EXPENSES
	Cost of Materials Consumed	954.045	1102.429	967.455
	Purchases of Stock-in-Trade	311.479	876.846	439.604
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(75.848)	14.290	16.845
	Employees benefits expense	258.034	244.315	217.890
	Other expenses	309.490	400.145	335.420
	TOTAL	1757.200	2638.025	1977.214

Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	109.904	229.326	120.182

Less	FINANCIAL EXPENSES	108.940	129.024	107.142

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	0.964	100.302	13.040

Less/ Add	DEPRECIATION/ AMORTISATION	45.660	61.071	62.836

	PROFIT/ (LOSS) BEFORE TAX	(44.696)	39.231	(49.796)

Less	TAX	(14.100)	19.700	(14.200)

	PROFIT/ (LOSS) AFTER TAX	(30.596)	19.531	(35.596)

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	(22.227)	(41.758)	(6.162)

	Balance Carried to the B/S	(52.823)	(22.227)	(41.758)

	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	923.328	1750.052	1064.503
	TOTAL EARNINGS	923.328	1750.052	1064.503

	IMPORTS
	Raw Materials	539.020	537.687	453.608
	Components and Stores parts	1.973	2.123	3.213
	Capital Goods	0.000	22.423	0.000
	TOTAL IMPORTS	540.993	562.233	456.821

	Earnings / (Loss) Per Share (Rs.)	(2.62)	1.67	(3.05)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	85.513	103.890	127.984
Cash generated from operations	3.091	208.175	102.503
Net cash generated from operating activities	0.422	201.547	102.149

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT/Sales)	(%)	(1.65)	0.68	(1.70)

Operating Profit Margin (PBDIT / Sales)	(%)	5.91	8.02	5.74

Return on Total Assets (PBT/Total Assets}	(%)	(4.00)	2.91	(3.84)

Return on Investment (ROI) (PBT/Networth)		(0.16)	0.13	(0.17)

Debt Equity Ratio (Total Debt/Networth)		2.56	2.22	2.62

Current Ratio (Current Asset/Current Liability)		0.75	0.82	0.79

STOCK PRICES

Face Value	Rs.10.00/- each
Market Value	Rs.11.50/- each

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	116.405	116.405	116.405
Reserves & Surplus	169.407	188.938	156.413
Net worth	285.812	305.343	272.818

long-term borrowings	320.236	263.735	223.723
Short term borrowings	299.770	309.807	390.072
Current Maturities of Long Term Debt	127.984	103.890	85.513
Total borrowings	747.990	677.432	699.308
Debt/Equity ratio	2.617	2.219	2.563

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	2093.866	2861.184	1859.779
		36.646	(35.000)

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	2093.866	2861.184	1859.779
Profit	(35.596)	19.531	(30.596)
	(1.70%)	0.68%	(1.65%)

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	----------------------
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	----------------------
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	----------------------
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	----------------------
33	Market information	----------------------
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2015	As on 31.03.2014
LONG TERM BORROWING
Fixed Deposits
From Public	0.000	1.560
Total	0.000	1.560

INDEX OF CHARGES

S. NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10388449	20/03/2013 *	75,000,000.00	CENTRAL BANK OF INDIA	MARKET ROAD, ALWAYE, COCHIN - 683101, KERALA, INDIA	B71954994
2	10337549	20/03/2013 *	35,000,000.00	EXPORT-IMPORT BANK OF INDIA	FLOOR 21, CENTER ONE BUILDING, WORLD TRADE CENTER ,CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	B72812563
3	10106252	13/03/2012 *	1,073,100,000.00	CENTRAL BANK OF INDIA	MARKET ROAD, ALUVA, COCHIN - 683101, KERALA, INDIA	B35424175
4	10043498	27/01/2014 *	271,600,000.00	AXIS BANK LIMITED	NO.41/419, GROUND FLOOR, CHICAGO PLAZA, RAJAJI ROAD, ERNAKULAM - 682035, KERALA, INDIA	B94848272
5	10050935	17/11/2009 *	81,568,750.00	EXPORT-IMPORT BANK OF INDIA	FLOOR 21 CENTER ONE BUILDING, WORLD TRADE CENTER CUFFEE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	A74750233
6	10050934	17/11/2009 *	72,251,510.00	EXPORT-IMPORT BANK OF INDIA	FLOOR 21 CENTER ONE BUILDING, WORLD TRADE CENTER CUFFEE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	A74750324
7	10039967	13/03/2012 *	120,000,000.00	BANK OF INDIA	ERNAKULAM MID CORPORATE BRANCH, MANAVALAN BUILDING, SUBHASH CHANDRA BOSE ROAD, PONNURUNNI, COCHIN - 682016, KERALA, INDIA	B36416717
8	10008948	30/06/2009 *	320,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH FIRST FLOOR, VANKARATH TOWERS PADIVATTOM, KOCHI - 682024, KERALA, INDIA	A67215897
9	10008946	17/11/2012 *	697,000,000.00	CENTRAL BANK OF INDIA	MARKET ROAD, ALWAYE, COCHIN - 683101, KERALA, INDIA	B62769054

* Date of charge modification

PERFORMANCE REVIEW

The Indian Textile Industry performed reasonably well during the fiscal year 2013-14 and continued the trend in the first two quarters of 2014-15 also. But, from the 3rd quarter of 2014-15, the industry went into tailspin due to a number of factors. One of the major causes was crash in the raw material prices globally by almost 50% and the Indian cotton prices were no exception. Spinning Mills, especially Export Oriented Mills like ours, who are obliged to carry several months requirement of raw cotton for quality reasons incurred substantial value losses on such inventories. The other important factor was significant changes in Chinese procurement policies and substantial reduction in Chinese import of cotton yarn. Consequently, yarn prices also fell significantly leading to lack of parity between cotton and cotton yarn prices. The cotton yarn exports from India into China also dropped by nearly 23%. These factors had a bearish effect on both demand and sales realization resulting in the mills carrying large unsold inventories and incurring losses. Moreover, the situation in respect of fine and superfine yarns which are our company’s main product lines continues to suffer from both lack of demand and sales realization which is below the cost of production. Salaries and Wages continued to rise during the year besides hike in power cost, thereby rendering the cost of manufacturing prohibitive.

The company’s total revenues sharply came down to Rs.1867.100 Million from Rs.2867.400 Million in the previous year due to substantial reduction in exports of outsourced yarns for reasons mentioned above. The operating profit came down to Rs.109.900 Million from Rs.229.400 Million in the previous year. After meeting finance cost of Rs.108.900 Million, the profit before depreciation, amortization and tax expenses was at Rs.1.000 Million only and net loss after provision of depreciation and deferred taxation at Rs.30.600 Million.

As regards performance of Aluva Unit in the current year, the Directors regret to inform that it continues to incur substantial losses. As already informed, ever rising high cost of salaries and wages as compared to industry norms has resulted in an unviable and untenable situation. To ensure survival of this unit, it is imperative that these costs are brought down to be at par with the industry.

BUSINESS OVERVIEW AND INDUSTRY DEVELOPMENTS

The Company is engaged in business of manufacture and export of high quality combed cotton yarns. The yarn is manufactured from the world’s best sources of long and extra-long staple cotton like American Supima, Egyptian Giza, contamination free Australian and American cottons and superior Indian cotton like Shankar-6 and DCH-32. The company manufactures yarns of various counts ranging from NE 26s to NE 180s. Permutations and combinations in spinning and finishing process results in yarns of varied qualities for specific end users. The company was amongst the first in India to manufacture compact yarn using the breakthrough technology of compact spinning, and also uses state-of-art machineries across its plants. Presently, the company has a capacity of 58,864 spindles at Aluva, Kerala, consisting of 34,896 compact spinning and 23,968 ring spinning. The company has promoted Patspin India Limited which has 2 plants at Palakkad in Kerala and Ponneri in Tamil Nadu having a capacity of 113,856 spindles, consisting of 79,025 Compact Spinning and 34,831 Ring Spinning.

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30.06.2015

(Rs in Million)

Sr. No	Particulars	Quarter Ended 30.06.2015
		(Unaudited)
1	Income from operations
	(a) Net Sales/Income from Operations	386.500
	(b) Other Operating Income	4.000
	Total income from operations (net)	390.500
2	Expenses
	(a) Cost of materials consumed	214.100
	(b) Purchases of stock-in-trade	7.400
	(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	23.700
	(d) Employee benefits expense	64.700
	(e) Depreciation and amortization expense	10.400
	(f) Power and Fuel	42.300
	(g) Other expenditure	31.800
	Total expenses	394.400
3	Profit before interest, Depreciation, Other Income, Exceptional Items and Tax (PBIDTA)	6.500
4.	Profit / (Loss) from operations before other income, finance costs and exceptional items	(3.900)
5	Other Income	0.600
6	Profit / (Loss) from ordinary activities before finance costs and exceptional items	(3.300)
7	Finance costs	23.900
8	Profit after Interest but before Depreciation, Exceptional Items and Tax (PBDTA)	(16.800)
9	Profit / Loss from ordinary activities after finance cost and exceptional items	(27.200)
10	Exceptional items	0.000
11	Profit / (Loss) from ordinary activities before tax	(27.200)
12	Tax Expense
	Current Tax (MAT)	0.000
	MAT Credit Entitlement	0.000
	Deferred Taxation	0.000
13	Net Profit / (Loss) from ordinary activities after tax	(27.200)
14	Extraordinary Items	0.000
15	Net Profit / (Loss) for the period	(27.200)
16	Paid up equity share capital (Face Value of Rs10/- share)	116.400
17	Reserve excluding Revaluation Reserves year	0.000
18	Earnings per share (EPS) Basic / Diluted, not annualized (Face Value of Rs. 10/- each)	(2.34)

A	PARTICULARS OF SHAREHOLDING
1	Public shareholding
	- Number of shares	4390040
	- Percentage of shareholding	37.71
2	Promoters and Promoter Group Shareholding
	a) Pledged / Encumbered	Nil
	- Number of shares	NA
	- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	NA
	- Percentage of shares (as a % of the total share capital of the company)
	b) Non-encumbered
	- Number of shares	7250438
	- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	100
	- Percentage of shares (as a % of the total share capital of the company)	62.29

B	INVESTOR COMPLAINTS (Nos.)	Quarter Ended 30.06.2015
	Pending at the beginning of the quarter	NIL
	Received during the quarter	NIL
	Disposed of during the quarter	NIL
	Remaining unresolved at the end of the quarter	NIL

Note:

The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 27.05.2015.

With effect from April 01, 2014, depreciation has been charged as per the rate prescribed under schedule II of the Companies Act, 2013. consequently, the amount of depreciation for the quarter and the year ended March 31,2015 is lower by Rs.14.465 Million and Rs.3.567 Million respectively

The Company is engaged in Yam business and as such has only Single Reportable Business Segment i.e. "Yarn Segment" in terms of requirements of Accounting Standard 17

Income from operations is significantly lower on account of lower sales of outsourced yarn during the quarter, which was primarily due to sharp decline in the export demand.

The figures of last quarter are the balancing figures between audited figures. In respect of the full financial year and the published year to date figures up to 3rd quarter of the current financial year.

Previous period / year’s figures have been regrouped wherever necessary.

FIXED ASSETS

Tangible Assets

· Land

· Building

· Plant and Equipment

· Office Equipment

· Furniture and Fixtures

· Vehicles

Intangible Assets

· Computer Software

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.64.94
UK Pound	1	Rs.101.43
Euro	1	Rs.72.25

INFORMATION DETAILS

Information Gathered by :	DIP

Analysis Done by :	KAR

Report Prepared by :	PNM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	---
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		27

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.