MIRA INFORM REPORT

Report No. :	337607
Report Date :	21.08.2015

IDENTIFICATION DETAILS

Name :	NITIN SPINNERS LIMITED
Registered Office :	16-17, K.M. Stone, Chittor Road, Hamirgarh, Bhilwara - 311001, Rajasthan
Tel. No.:	91-1482-286110/113
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	15.10.1992
Com. Reg. No.:	17-006987
Capital Investment / Paid-up Capital :	Rs. 458.339 Million
CIN No.: [Company Identification No.]	L17111RJ1992PLC006987
IEC No.:	1392004691
TAN No.: [Tax Deduction & Collection Account No.]	JDHN01149B
PAN No.: [Permanent Account No.]	AAACN7529A
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Exporter of Cotton Yarn and Knitted Fabric.
No. of Employees :	2300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Status :	Satisfactory
Payment Behavior :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company incorporated during the year 1992 having a satisfactory track record. Available financial indicates company sound financial risk profile marked by healthy networth position with good profitability and favourable gap between trade payable and trade receivable. Trade relations are reported as fair. Business is active. Payments terms are reported to be usually correct and as per commitment. In view of long track record and sound financial base, the company can be considered normal for business dealing 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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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	CARE
Rating	Long term bank facilities: “BBB+”
Rating Explanation	Moderate degree of safety and carry moderate credit risk.
Date	17.07.2015

Rating Agency Name	CARE
Rating	Short term bank facilities: “A2+”
Rating Explanation	Strong degree of safety and carry low credit risk.
Date	17.07.2015

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 PARTED BY

Name :	Mr. Purshottam Maheshwari
Designation :	Chief Financial Officer
Contact No.:	91-1482-286110
Date :	19.08.2015

LOCATIONS

Registered Office / Factory:	16-17, K.M. Stone, Chittor Road, Hamirgarh, Bhilwara - 311001, Rajasthan, India
Tel. No.:	91-1482-286110/113
Fax No.:	91-1482-286114/ 286117
E-Mail :	sudhirgarg@nitinspinners.com nsl@nitinspinners.com ipo@bigshareonline.com yarns@nitinspinners.com
Website :	http://www.nitinspinners.com
Location :	Owned (Commercial)

DIRECTORS

AS ON 11.09.2014

Name :	Yeshwantlal Ratilal Shah
Designation :	Director
Address :	A-1, Dhanratna Apartment, Opposite Navrang Cinema, Off. J. P. Road, Mumbai - 400058, Maharashtra, India
Date of Birth/Age :	31.08.1942
Date of Appointment :	24.02.2005
Qualifications :	B.E.(Text)
DIN No.:	00019557
Name :	Dinesh Nolkha
Designation :	Managing Director
Address :	B - 86, Shastri Nagar, Bhilwara - 311001, Rajasthan, India
Date of Appointment :	01.10.2013
DIN No.:	00054658
Name :	Nitin Nolakha
Designation :	Whole-Time Director
Address :	B - 86, Shastri Nagar, Bhilwara - 311001, Rajasthan, India
Date of Appointment :	01.10.2010
DIN No.:	00054707
Name :	Ratan Lal Nolkha
Designation :	Managing Director
Address :	B - 86, Shastri Nagar, Bhilwara - 311001, Rajasthan, India
Date of Appointment :	01.09.2012
DIN No.:	00060746
Name :	Bhagwan Ram
Designation :	Director
Address :	11/124 Kaveri Path, Mansarovar, Jaipur - 302020, Rajasthan, India
Date of Birth/Age :	03.08.1933
Date of Appointment :	15.05.2001
Qualifications :	Graduate from University of Paris and University of Paris and Georgetown, PG Diploma in Economics and Finance IAS (Rtd.)
DIN No.:	01441176
Name :	Rabisankar Chattopadhyay
Designation :	Director
Address :	48 New Campur Iit Delhi, Hauz Khas, New Delhi - 110016, India
Date of Appointment :	11.09.2014
DIN No.:	06928729

KEY EXECUTIVES

Name :	Sudhir Kumar Garg
Designation :	Company Secretary & GM (Legal)
Address :	E - 9, Basant Vihar, Bhilwara - 311001, Rajasthan, India
PAN No:	AABPK6037F
Date of Appointment :	19.04.2006
Name :	Ratan Lal Nolkha
Designation :	Manager
Address :	B - 86, Shastri Nagar, Bhilwara - 311001, Rajasthan, India
PAN No:	AAHPN1293K
Date of Appointment :	15.10.1992
Name :	Purshottam Maheshwari
Designation :	Chief Financial Officer and Vice President (Finance)
Address :	6-A-14, R C Vyas Colony, Bhilwara - 311001, Rajasthan, India
PAN No:	ABAPM8005C
Date of Appointment :	06.05.2014
Name :	Sandeep Kumar
Designation :	Vice President (Technical)
Name :	K. L. Pareek
Designation :	G.M. (P&A)
Name :	Ratnesh Kumar
Designation :	G.M. (Rotor Spinning)
Name :	Tarun Sahu
Designation :	G.M. (Engg.)
Name :	Umesh Toshniwal
Designation :	GM. (Mktg.)
Name :	S. S. Ranka
Designation :	GM (TPP)

MAJOR SHAREHOLDERS / 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	12618500	27.53
Bodies Corporate	16720000	36.48
Sub Total	29338500	64.01
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	29338500	64.01
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	12204	0.03
Sub Total	12204	0.03
(2) Non-Institutions
Bodies Corporate	2012827	4.39
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	7612670	16.61
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	5467513	11.93
Any Others (Specify)	1390231	3.03
Clearing Members	463012	1.01
Non Resident Indians	823327	1.80
Trusts	1500	0.00
Overseas Corporate Bodies	102392	0.22
Sub Total	16483241	35.96
Total Public shareholding (B)	16495445	35.99
Total (A)+(B)	45833945	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)	45833945	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Cotton Yarn and Knitted Fabric.
Products :	Cotton Yarn and Knitted Fabric
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :
Products :	Finished Goods
Countries :	US African Countries South Africa China Bangladesh European Countries
Imports :
Products :	Raw Material / Components
Countries :	Australia USA Greece Germany Italy
Terms :
Selling :	Cheque and Credit
Purchasing :	Cheque and Credit

PRODUCTION STATUS (AS ON 31.03.2014)

Particulars	Unit	Installed Capacity
Rotors	(Nos.)	2936
Spindles	(Nos.)	77616
Knitted Fabric	(No. of M/c’s)	31

Particulars	Unit	Production / Purchase
A. Yarn
Own Manufacturing*	In Tons	21621.987
Trading	In Tons	490.115
B. Fabric	In Tons	2706.659
C. job Works and Others
Fabrics	In Tons	454.945

* Production includes 2675.591 Tons. (Previous Year 1896.224 Tons.) Transferred for captive consumption

GENERAL INFORMATION

Suppliers :

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

Customers :

End Users and OEMs

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 :

2300 (Approximately)

Bankers :

Bank Name	Punjab National Bank
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)	Long-term loan Rs. 3000.000 Million Working capital loan Rs. 7950.000 Million
Account Operation	Not Divulged
Remarks (If any)	Including all Bank

· Oriental Bank of Commerce

· State Bank of India

· Indian Overseas Bank

· UCO Bank

· Bank of Baroda

· IDBI Bank Limited

Facilities :

Secured Loan	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
Long-term Borrowings
Term Loan from Banks
Taken to Other Current Liabilities	NA	1621.674
being Current Maturities	NA	317.478
Vehicle Loan From Bank
Taken to Other Current Liabilities	NA	4.837
being Current Maturities	NA	1.974
Short-term borrowings
Loans repayable on demand :
Working Capital Loan from Banks (The working capital loans are secured by way of hypothecation (both present and future ) of stocks of raw material / component spares, stock in process, finished goods and book debts and a second charge on all immovable properties (both present and future) of the company. The working capital loans are also secured by personal guarantee of three directors.)	NA	134.235
Total	NA	4052.224

NOTE: [AS ON 31.03.2014]

Long-term Borrowings

Security:

Term Loans of Rs. 1338.549 Million are secured by way of first charge on all immovable and movable fixed assets (both present and future) and second charge on current assets. The term loan of Rs. 283.125 Million are secured by way of third charge on all immovable and movable fixed assets and current assets of the company. The term loans are also secured by personal guarantee of three directors.

Terms of Repayment:

Term loans of Rs. 91.066 Million are repayable in 9 variable quarterly instalments upto 30th June 2016, Rs. 1481.323 Million in 19 variable quarterly instalments upto 31st December 2018 and Rs. 49.285 Million in 23 equal quarterly instalments upto 31st December 2019.

Vehicle loan of Rs. 1.438 Million is repayable in 26 variable monthly instalments upto 7th May 2016, Rs. 2.228 Million in 27 variable monthly instalments upto 12th June 2016 and Rs. 1.171 Million in 36 variable monthly instalments upto 7th March 2017.

Auditors :
Name :	R. S. Dani and Company Chartered Accountants
Address :	Bhilwara, Rajasthan, India
Memberships :	-----
Collaborators :	-----
Associates [AS ON 31.03.2014]:	Redial Trading and Investment Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2015

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital : Rs. 458.339 Million

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
4,60,00,000	Equity Shares	Rs.10/- each	Rs. 460.000 Million
4,00,000	Preference Shares	Rs.100/- each	Rs. 40.000 Million
	Total		Rs. 500.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4,58,33,945	Equity Shares	Rs.10/- each	Rs. 458.339 Million

Details of Shareholders holding more than 5% Shares are as under:

Name of Shareholders	AS ON. 31.03.2014
	No. of Shares No. of Shares	(% of Holding)
Redial Trading & Investment Private Limited	16682934	36.40%
Prasham Corporate Services (India) Private Limited	----	----
Ratan Lal Nolkha	5515000	12.03%
Dolphin Carrier Private Limited	-----	----

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

Particulars	AS ON. 31.03.2014
	Number of Shares
Equity Shares at the beginning of the year	45833945
Add : Shares issued during the year	--
Equity Shares at the end of the year	45833945

The company has not issued, any shares pursuant to contract without payment being received in cash, bonus Share and has not bought back any shares

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	458.339	458.339	458.339
(b) Reserves & Surplus	1211.649	857.220	549.630
(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)	1669.988	1315.559	1007.969
(3) Non-Current Liabilities
(a) long-term borrowings	2942.455	1307.059	1623.212
(b) Deferred tax liabilities (Net)	339.341	211.467	65.963
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	42.517	23.560	14.534
Total Non-current Liabilities (3)	3324.313	1542.086	1703.709
(4) Current Liabilities
(a) Short term borrowings	533.370	134.670	168.596
(b) Trade payables	93.673	106.993	53.982
(c) Other current liabilities	417.131	388.822	512.885
(d) Short-term provisions	60.479	51.717	10.145
Total Current Liabilities (4)	1104.653	682.202	745.608
TOTAL	6098.954	3539.847	3457.286
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	4164.022	1912.143	2129.852
(ii) Intangible Assets	3.354	0.000	0.000
(iii) Capital work-in-progress	0.000	211.764	0.000
(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	272.661	299.765	65.034
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	4440.037	2423.672	2194.886
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	941.892	706.984	818.970
(c) Trade receivables	404.194	248.931	280.397
(d) Cash and cash equivalents	6.789	0.637	2.759
(e) Short-term loans and advances	38.523	46.915	50.999
(f) Other current assets	267.519	112.708	109.275
Total Current Assets	1658.917	1116.175	1262.400
TOTAL	6098.954	3539.847	3457.286

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	SALES
	Income	6168.013	4883.402	4460.536
	Other Income	39.491	3.476	3.029
	TOTAL	6207.504	4886.878	4463.565
Less	EXPENSES
	Cost of Materials Consumed	3853.455	2935.421	2495.843
	Purchases of Stock-in-Trade	17.396	102.360	146.063
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(34.050)	(59.213)	(1.895)
	power and fuel	513.029	0.000	0.000
	Employees benefits expense	342.830	246.021	199.360
	Exceptional Items	0.000	0.000	147.383
	Other expenses	471.779	719.449	749.008
	TOTAL	5164.439	3944.038	3735.762
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	1043.065	942.840	727.803
Less	FINANCIAL EXPENSES	226.198	174.635	273.058
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	816.867	768.205	454.745
Less/ Add	DEPRECIATION/ AMORTISATION	279.400	248.658	244.987
	PROFIT/ (LOSS) BEFORE TAX	537.467	519.547	209.758
Less	TAX	127.873	171.740	68.385
	PROFIT/ (LOSS) AFTER TAX	409.594	347.807	141.373
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	490.547	218.575	77.202
Less	APPROPRIATIONS
	Transfer to General Reserve	NA	35.618	0.000
	Proposed Dividend	NA	34.375	0.000
	Tax on Dividend	NA	5.842	0.000
	BALANCE CARRIED TO THE B/S	409.594	490.547	218.575
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	NA	3161.991	3278.700
	TOTAL EARNINGS	NA	3161.991	3278.700
	IMPORTS
	Raw Materials	NA	138.136	225.809
	Components and Stores parts	NA	52.354	51.293
	Capital Goods	NA	24.185	48.632
	TOTAL IMPORTS	NA	214.675	325.734
	Earnings / (Loss) Per Share (Rs.)	8.94	7.59	3.08

Expected Sales (2015-2016): Rs. 8000.000 Million

The above information has been parted by Mr. Purshottam Maheshwari.

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	NA	319.452	274.615
Cash generated from operations	NA	978.578	926.824
Net cash flow from (used in) operations	NA	NA	NA
Net Cash Generated from Operating Activities	NA	866.246	888.986

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	6.64	7.12	3.17
Operating Profit Margin (PBIDT/Sales)	(%)	16.91	19.31	16.32
Return on Total Assets (PBT/Total Assets}	(%)	8.81	15.61	6.07
Return on Investment (ROI) (PBT/Networth)		0.32	0.39	0.21
Debt Equity Ratio (Total Debt /Networth)		2.08	1.10	1.78
Current Ratio (Current Asset/Current Liability)		1.50	1.64	1.69

STOCK PRICES

Face Value	Rs. 10.00/-
Market Value	Rs. 81.55/-

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	458.339	458.339	458.339
Reserves & Surplus	549.630	857.220	1211.649
Share Application money pending allotment	0.000	0.000	0.000
Net worth	1007.969	1315.559	1669.988
long-term borrowings	1623.212	1307.059	2942.455
Short term borrowings	168.596	134.670	533.370
Total borrowings	1791.808	1441.729	3475.825
Debt/Equity ratio	1.778	1.096	2.081

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	4460.536	4883.402	6168.013
		9.480	26.306

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	4460.536	4883.402	6168.013
Profit	141.373	347.807	409.594
	3.17%	7.12%	6.64%

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	Yes
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)	Yes
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 two 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	Yes
35	Negative Reporting by Auditors in the Annual Report	No

UNSECURED LOAN

PARTICULARS	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
Short-term borrowings
Loans repayable on demand
Security Deposits	NA	0.435
Total	NA	0.435

INDEX OF CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10574531	29/05/2015	1,700,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI - 400013, Maharashtra, INDIA	C56242613
2	10536921	17/06/2015 *	2,274,500,000.00	PUNJAB NATIONAL BANK	BHOPAL GANJ, BHILWARA - 311001, Rajasthan, INDIA	C57875049
3	10509374	30/05/2014	750,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI - 400013, Maharashtra, INDIA	C11556859
4	10510756	30/05/2014	550,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI - 400013, Maharashtra, INDIA	C12884300
5	10508108	16/05/2014	525,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI - 400013, Maharashtra, INDIA	C10583870
6	10508352	16/05/2014	525,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI - 400013, Maharashtra, INDIA	C10804219
7	10508355	16/05/2014	500,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI - 400013, Maharashtra, INDIA	C10805521
8	10508359	16/05/2014	625,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI - 400013, Maharashtra, INDIA	C10806966
9	10508364	16/05/2014	500,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI - 400013, Maharashtra, INDIA	C10808558
10	10508368	16/05/2014	525,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI - 400013, Maharashtra, INDIA	C10810604

* Date of charge modification

OPERATIONAL REVIEW (AS ON 31.03.2014)

This was a remarkable year for the Company as it has achieved highest ever turnover as well as profitability. During the year turnover has increased to Rs. 4883.400 Million from Rs. 4460.500 Million representing an increase of 9.48% over previous year. There is significant increase in the turnover of Knitted Fabric from Rs. 452.000 Million in the previous year to Rs. 701.500 Million during the current year registering an increase of 55.20% over the previous year. The export turnover marginally decreased from Rs. 3409.000 Million in the previous year to Rs. 3320.500 Million in the current year. The export turnover constitutes 68% of the total turnover.

Stable cotton price, consistent demand of Cotton Yarn from Domestic as well as International markets and favorable foreign exchange rates resulted in increased operating profit (EBIDTA) from Rs 875.200 Million in previous year to Rs. 942.800 Million in current year registering an increase of 7.72% over previous year. the Company has achieved Net Profit (PAT) of Rs. 347.800 Million registering an increase of around 250% from Rs. 141.400 Million in the previous year and Earning per Share of Rs. 75.900 Million for current year against Rs. 30.800 Million in the previous year. The Board of Directors expect to repeat the same performance in the current Financial Year -2014-15.

INDUSTRY OUTLOOK (AS ON 31.03.2014)

The Growth in GDP of our country during the year 2013-14 is pegged at 4.90% as compared to the Growth rate of 4.50% in the year 2012-13 indicating that slowdown in our country has bottomed out. The Textile Sector comprising Cotton, Man-made Fibers, Jute, Sericulture and Silk Wool, Handlooms and handicrafts play a key role in the Indian economy by way of significant contribution to GDP, manufacturing output, employment generation and export earnings. The Cotton Textile sector continued to be largest sector with around 75% share of the total Indian Textile sector.

In the diverse economic and manufacturing activities of India, cotton growing, processing and trading occupy a predominant position and act as one of the strong competitive base for textile and clothing production. India is one of the largest producers and exporters of cotton and an influencing player in global cotton economy. A significant amount of cotton was being imported for spinning industry till 2004-05, a year later, India became a net exporter in cotton and holds this position till now after meeting the domestic requirement. India has occupied the 2nd slot in world’s cotton production, consumption and export. In the current season 2013-14 cotton crop is estimated at 37.500 Million bales against Rs. 34.000 Million bales during previous season. The Cotton Textile Industry performed well during the current year and production of Cotton Yarn in our country has increased by about 10% and Exports nearly 32%. The cotton prices remained stable during the year. Stable Cotton price, consistent demand of Cotton Yarn from Domestic as well as International Markets and favorable foreign exchange rates have resulted into a landmark year for the Cotton Spinning Industry and your company has also witnessed phenomenal growth in operating and cash margins

OPERATIONAL REVIEW (AS ON 31.03.2014)

Please refer to the paragraph under the heading “Financial Results” and “Operational Review” in the main Directors’ Report.

SEGMENTWISE PERFORMANCE (AS ON 31.03.2014)

The Management reviewed the disclosure requirement of Segment wise reporting and is of the view that since the Company’s products are covered under Textile Industry which is single business segment in terms of AS-17 and therefore separate disclosure on reporting by business segment is not required.

CONTINGENT LIABILITIES:

Particulars	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
Disputed Liabilities not acknowledged as debts
- Cenvat, Service Tax and Custom Duty	NA	80.491
Guarantees
- Outstanding Bank Guarantees	NA	31.559
Other money for which the company is contingently liable
- Bill Discounted with Bank	NA	466.793

UN-AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED ON 30.06.2015

PARTICULARS	Quarter Ended
	30.06.2015
	Unaudited
(a) Net Sales/ Income from Operations (Net of Excise Duty)	1962.623
(b) Other Operating Income	2.081
Total income from operations (net)	1964.704
Expenses
(a) Cost of materials consumed	1145.202
(b) Purchases of stock-in trade	0.000
(c) Changes in inventories of finished goods. work-in-progress and stock in trade	19.075
(d) Employee benefits expense	112.085
(e) Depreciation and Amortization Expenses	98.838
(f) Other Expenses	154.568
(g) Power and Fuel	155.539
(h) Value of Wind Power	0.000
Total expenses	1685.307
Profit/ (Loss) from operations before other Income, finance costs and exceptional Items (1-2)	279.397
Other Income	0.375
Profit/ (Loss) from operations before other income, finance costs and exceptional items (3+4)	279.772
Finance Costs	97.600
Profit/ (Loss) from ordinary activities after finance cost but before exceptional items (5-6)	182.172
Exceptional items	0.000
Profit/ (Loss) from ordinary activities before tax (7+8)	182.172
Tax expenses	64.402
Net Profit / (Loss) from ordinary activities after tax (9-10)	117.770
Extraordinary item (net of tax expense)	0.000
Net Profit / (Loss) for the period (11-12)	117.770
Share of profit' (loss) of associates	---
Minority Interest	---
Net Profit/ (Loss) after taxes, minority interest and share of profit/(loss) of associates (13+14+15)
Paid up equity share capital (Face Value of Rs 10/-each)	458.339
Reserve excluding Revaluation Reserve as per Balance Sheet of previous accounting year	---
Earnings per share (before extraordinary items) of Rs.10/- each (not annualized):	----
(a) Basic	2.57
(b) Diluted	2.57
PARTICULARS OF SHAREHOLDING
Public Shareholding
- Number of shares	169495445
- Percentage of shareholding	35.99
Promoters and Promoter group shareholding
a) Pledged / Encumbered	---
- Number of shares	---
- Percentage of shares (as a % of the total shareholding of Promoter & Promoter group)	---
- Percentage of shares (as a % of the total Share Capital of the Company)	---
b) Non Encumbered
- Number of shares	29338500
- Percentage of shares (as a % of the total shareholding of Promoter & Promoter group)	100
- Percentage of shares (as a % of the total Share Capital of the Company)	64.01

NOTE:

• The company’s business activities falls within a single segment (Textiles), in terms of accounting standard -17 of ICAI

• The figures of the quarter ended 31st March, 2015 are the balancing figures between the audited figures in respect of full financial year ended on 31st March 2015, and unaudited published figures upto the third quarter ended 31st December 2014. The figures of previous year /quarter have been regrouped/rearranged, whenever required.

• No investor’s complaint was pending at the beginning and end of the quarter. One complaint received during the quarter was resolved.

• The above financial results have been approved by the audit committee, board of director at their meeting held on 25th July, 2015. The statutory auditors have carried out “limited review” of the same.

FIXED ASSETS

• Freehold Land
• Buildings
• Plant and Machinery
• Electric Installation
• Furniture and Fixtures
• Office Equipment’s
• Vehicles

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. 65.24
UK Pound	1	Rs. 102.21
Euro	1	Rs. 72.57

INFORMATION DETAILS

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

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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		50

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

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

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

RATING EXPLANATIONS

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