MIRA INFORM REPORT

Report No. :	325213
Report Date :	02.06.2015

IDENTIFICATION DETAILS

Name :	NAHAR INDUSTRIAL ENTERPRISES LIMITED (w.e.f. 1994)
Formerly Known As :	OSWAL FATS AND OILS LIMITED
Registered Office :	Focal Point, Ludhiana – 141010, Punjab
Tel. No.:	91-161-2672590
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	27.09.1983
Com. Reg. No.:	16-018321
Capital Investment / Paid-up Capital :	Rs. 400.342 Million
CIN No.: [Company Identification No.]	L15143PB1983PLC018321
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	JLDN00400B / JLDN0758C
PAN No.: [Permanent Account No.]	AAACN7244C
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Yarn, Fabrics and Sugar.
No. of Employees :	Information declined by management.

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Status :	Moderate
Payment Behaviour :	Slow and delayed
Litigation :	Exist
Comments :	Subject is a part of “NAHAR GROUP”. It is a very old and well established company. The company possesses on acceptable financial profile marked by decent networth base along with slight working capital requirements partly due to seasonal availability of major raw material cotton, as well as exposure to risk of debt funded capex on setting up a greenfield grain based distillery and timely completion of the same project. Management has witnesse an improvement in its operating income as well as net profitability during financial year 2014. Moreover, it is found that the subject has defaulted hefty amounts with 3 major banks i.e. ICICI Bank (Rs. 451.100 Millions), HDFC Bank (Rs. 84.500 Millions), Deutsche Bank (Rs. 494.600 Millions) for the reasons best known to them, which has an important repurcation on the rating. However, trade relations seems to be fair. Business is active. Payment terms are reported as slow and delayed. In view of vast experience of the promoters, the company can be considered for business dealings on a safe and secured 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	ICRA
Rating	Fund based limits A-
Rating Explanation	Adequate degree of safety and low credit risk.
Date	September 2014.

Rating Agency Name	ICRA
Rating	Non Fund based limits A2+
Rating Explanation	Strong degree of safety and low credit risk.
Date	September 2014.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAILTERS’ 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 DENIED BY

Name :	Mr. Dipak
Designation :	Account Department
Contact No.:	91-161-2672590
Date :	29.05.2015

LOCATIONS

Registered Office/ Corporate Office 1 :	Focal Point, Ludhiana – 141010, Punjab, India
Tel. No.:	91-161-2672590/ 592/ 591
Mobile No.:	Not Available
Fax No.:	91-161-2670596/ 2674072
E-Mail :	msood@owmnahar.com nildh@owmnahar.com anil.garg@owmnahar.com
Website :	http://www.owmnahar.com
Location :	Owned
Corporate Office 2 :	Nagar Tower Industrial Area – A, Ludhiana – 141003, Punjab, India
Tel. No.:	91-161-2600701 to 705
Fax No.:	91-161-2600709 / 2601956
E-Mail :	nahar@owmnahar.com
Corporate Office 3 :	G.T. Road, Sherpur, Ludhiana – 141003, Punjab, India
Tel. No.:	91-161-2542501 to 07
Fax No.:	91-161-2542509
E-Mail :	oswal@owmnahar.com
Factory 1 :	Arham Spinning Mills Village Udaipur / Khijuriwas, Bhiwadi, District Alwar, Rajasthan, India
Factory 2 :	Spinning Unit, Spinning Unit- II, Spinning Unit-III, Spinning Unit-IV Village Jalalpur, Chandigarh-Ambala Road, Lalru, District Mohali, Punjab, India
Factory 3 :	Sambhav Spinning Mills Industrial Focal Point, Phase VIII, Mundian Kalan, District Ludhiana, Punjab, India
Factory 4 :	Fabrics Unit Village Jalalpur, Chandigarh-Ambala Road, Lalru, District Mohali, Punjab, India
Factory 5 :	New Process and Dyeing Village Jalalpur, Chandigarh-Ambala Road, Lalru, District Mohali, Punjab, India
Factory 6 :	Nahar Sugar Village Salana Jeon Singh Wala, Tehsil Amloh, District Fatehgarh Sahib, Punjab, India
Factory 7 :	Nahar Complex, P.O. Dappar, 21^st Mile Stone, Ambala-Chandigarh Road, Near Lalru, Mohali - 140506, Punjab, India
Tel No.:	91-1762-506503 / 506566
Fax No.:	91-1762-506567

DIRECTORS

As On 31.03.2014

Name :	Mr. Jawaharlal Oswal
Designation :	Chairman
Name :	Mr. Kamal Oswal
Designation :	Vice Chairman and Managing Director
Qualification :	B. Com
Date of Appointment :	01.02.1998
Name :	Mr. Dinesh Oswal
Designation :	Director
Name :	Mr. Dinesh Gonga
Designation :	Director
Name :	Mr. N.D. Jain
Designation :	Director
Name :	Dr. H.K. Bal
Designation :	Director
Name :	Prof. K.S. Maini
Designation :	Director
Name :	Dr. Y.P. Sachdev
Designation :	Director
Name :	Dr. A.S. Sohi
Designation :	Director
Name :	Mr. A.S. Chatha
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Mukesh Sood
Designation :	Company Secretary
Name :	Mr. B. Bhushan Gupta
Designation :	Corporate Finance Contorller
Name :	Mr. Dipak
Designation :	Account Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2015

Category of Shareholder	No. of Shares	% of Holdings
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1324	0.00
Bodies Corporate	27137877	68.13
Sub Total	27139201	68.13
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	27139201	68.13
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	18352	0.05
Financial Institutions / Banks	5021	0.01
Insurance Companies	169463	0.43
Foreign Institutional Investors	112	0.00
Any Others (Specify)	308162	0.77
NRI /OCB	308162	0.77
Sub Total	501110	1.26
(2) Non-Institutions
Bodies Corporate	466000	1.17
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	6471588	16.25
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	5257242	13.20
Sub Total	12194830	30.61
Total Public shareholding (B)	12695940	31.87
Total (A)+(B)	39835141	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)	39835141	0.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Yarn, Fabrics and Sugar.
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Not Available
Countries :	Not Available
Imports :
Products :	Not Available
Countries :	Not Available
Terms :
Selling :	Not Available
Purchasing :	Not Available

PRODUCTION STATUS

Not Available

GENERAL INFORMATION

Suppliers :

Not Available

Customers :

Not Available

No. of Employees :

Information declined by management.

Bankers :

• State Bank of Patiala
• Punjab National Bank
• Punjab and Sind Bank
• Indian Overseas Bank
• Corporation Bank
• Canara Bank
• Allahabad Bank
• State Bank of India
• IDBI Bank Limited

Facilities :

SECURED LOANS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Term Loan from Bank	4314.384	5125.824
SHORT TERM BORROWINGS
Loans repayable on demand	4624.477	5089.751
Total	8938.861	10215.575
Note : Short Term Borrowings: Working Capital Borrowings are secured by hypothecation of stock of Raw Materials, Work-in-Progress, Finished Goods, Stores and Book Debts and further secured by 2nd charge on Fixed Assets of the Company and also personally guaranteed by some of the Directors of the Company.

Banking Relations :	--
Auditors :
Name :	Raj Gupta and Company Chartered Accountant
Address :	549/10, Sutlej Tower, Opposite Petrol Pump, Near Fountain Chowk, Ludhiana – 141001, Punjab, India.
Memberships :	Not Available
Collaborators :	Not Available
Associates :	Nahar Poly Films Limited Nahar Capital and Financial Services Limited Atam Vallabh Financers Limited J.L. Growth Fund Limited Vardhman Investments Limited Abhilash Growth Fund Private Limited Kovlam Investment Trading Company Limited Ludhiana Holding Limited Nagdevi Trading Investment Company Limited Nahar Growth Fund Private Limited Neha Credit Investment Private Limited Sankheshwar Holding Company Limited Vanaik Investor Limited Vinayak Spinning Mills Limited Nahar Industrial Infrastructure Corporation Limited Crown Star Limited Nahar Financial and Investment Limited Nahar Capital and Financial Services Limited Oswal Woolen Mills Limited Atam Vallabh Financers Limited Cotton County Retail Limited Monte Carlo Fashions Limited Hug Foods Private Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
65,000,000	Equity Shares	Rs. 10/- each	Rs. 650.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
39,835,141	Equity Shares	Rs. 10/- each	Rs. 398.351 Millions
	Add : Shares Forfeited Account (Amount originally paid up)		Rs. 1.991 Millions
	Total		Rs. 400.342 Millions

Reconciliation of the number of equity shares outstanding:

Particular	As on 31.03.2013
At the beginning of the period	39835141
Less : Shares Forfeited	--
Outstanding at the end of period	39835141

Terms/rights attached to equity shares:

The company has only one class of Equity Shares having Face value of 10/- each. Each holder of equity share is entitled to only one vote per share.

Detail of Shareholders holding more than 5%shares:

Shareholders	Number	% of holding
Nahar Capital and Financial Services Limited	9336745	23.44
J L Growth Fund Limited	3421836	8.59
Nahar Poly Films Limited	2708800	6.80
Vardhman Investments Limited	2277955	5.72
Ashish Dhawan	2590124	6.50
Nagdevi Trading and Investment Company Limited	2150608	5.40

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	400.342	400.342	400.342
(b) Reserves & Surplus	6009.118	5363.556	4991.405
(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)	6409.460	5763.898	5391.747
(3) Non-Current Liabilities
(a) long-term borrowings	4735.785	5516.430	5448.254
(b) Deferred tax liabilities (Net)	325.326	189.126	62.776
(c) Other long term liabilities	86.697	160.445	245.990
(d) long-term provisions	24.690	34.864	9.942
Total Non-current Liabilities (3)	5172.498	5900.865	5766.962
(4) Current Liabilities
(a) Short term borrowings	4624.477	5089.751	4443.514
(b) Trade payables	566.110	722.490	771.388
(c) Other current liabilities	2063.637	1718.939	1360.985
(d) Short-term provisions	112.642	106.173	62.792
Total Current Liabilities (4)	7366.866	7637.353	6638.679
TOTAL	18948.824	19302.116	17797.388
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	7345.376	7663.857	6554.717
(ii) Intangible Assets	6.435	0.000	0.000
(iii) Capital work-in-progress	342.774	124.305	1344.540
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1390.603	1390.598	1408.600
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	110.715	124.374	189.802
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	9195.903	9303.134	9497.659
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	6325.353	6756.201	5291.123
(c) Trade receivables	2105.145	1696.489	1557.912
(d) Cash and cash equivalents	24.822	21.925	29.257
(e) Short-term loans and advances	359.144	633.590	660.797
(f) Other current assets	938.457	881.777	760.640
Total Current Assets	9752.921	9989.982	8299.729
TOTAL	18948.824	19293.116	17797.388

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	18495.141	17104.385	14078.234
		Other Income	64.638	79.002	69.855
		TOTAL (A)	18559.779	17183.387	14148.089
Less	EXPENSES
		Cost of Material Consumed	10267.873	8719.351	9165.716
		Purchase of Stock-in-Trade	43.894	171.239	360.176
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(856.784)	(64.847)	(348.878)
		Employees benefit expenses	1413.051	1240.943	958.219
		Other Expenses	4379.187	4081.665	3286.315
		TOTAL (B)	15247.221	14148.351	13421.548
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3312.558	3035.036	726.541
Less	FINANCIAL EXPENSES (D)		1058.728	1310.262	974.455
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2253.830	1724.774	(247.914)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1203.085	1104.826	807.445
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		1050.745	619.948	(1055.359)
Less	TAX (H)		358.270	201.500	(247.803)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		692.475	418.448	(807.556)
Add	Income tax Liability/ refund of earlier years		--	--	(36.218)
Add	Transfer from Contingent Liability Reserve		--	--	--
Add	Transfer from FCCBs Periodic Cost Revenue		--	--	--
Less	APPROPRIATION
		Transfer to General Reserve	NA	377.663	(843.774)
		Proposed Dividend	NA	39.835	--
		Corporate Tax on Dividend	NA	6.462	--
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	2396.107	2497.498	1233.310
		Other	0.000	9.028	30.713
	TOTAL EARNINGS		2396.107	2506.526	1264.023
	IMPORTS
		Raw Materials	0.000	27.378	64.451
		Capital Goods and Stores	357.198	268.616	867.897
	TOTAL IMPORTS		357.198	295.994	932.348
	Earnings Per Share (Rs.)		17.38	10.50	(19.99)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	3.74	2.44	(5.73)
Operating Profit Margin (PBDIT/Sales)	(%)	12.18	19.22	5.15
Return on Total Assets (PBT/Total Assets}	(%)	6.10	3.48	(7.01)
Return on Investment (ROI) (PBT/Networth)		0.16	0.11	(0.20)
Debt Equity Ratio (Total Liability/Networth)		1.46	1.84	1.83
Current Ratio (Current Asset/Current Liability)		1.32	1.31	1.25

STOCK PRICES

Face Value	Rs. 10.00/-
Market Value	Rs. 48.50/-

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	400.342	400.342	400.342
Reserves & Surplus	4991.405	5363.556	6009.118
Net worth	5391.747	5763.898	6409.460
long-term borrowings	5448.254	5516.430	4735.785
Short term borrowings	4443.514	5089.751	4624.477
Total borrowings	9891.768	10606.181	9360.262
Debt/Equity ratio	1.835	1.840	1.460

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	14078.234	17104.385	18495.141
		21.495	8.131

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	14078.234	17104.385	18495.141
Profit	(807.556)	418.448	692.475
	(5.74%)	2.45%	3.74%

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	No
10	Date of Birth of Proprietor / Partners / Directors	No
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	No
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	Yes
33	Market information	-----
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

Nahar Industrial Enterprises to set up distillery in Punjab state

Nahar Industrial Enterprises Ltd has informed BSE that the Company has planned to set up a Distillery with a capacity two lakh liters (200KL) / per day at village Salana Jeon Singh Wala, District Fategarh Sahib in the State of Punjab.

Name of Directors Reported by Credit Grantors Filing the Suit:

Sr. No.	Directors Reported by Credit Grantors
DEUTSCHE BANK
1.	Dinesh Gogna
2.	Dinesh Oswal
3.	Kamal Oswal

List of Credit Grantors to which Nahar Industrial Enterprises Limited is a defaulter:

Name of Credit Grantors	Branch	Amount (Rs. In Lacs)
DEUTSCHE BANK	FORT BRANCH, MUMBAI	494.600

Name of Directors Reported by Credit Grantors Filing the Suit:

Sr.No.	Directors Reported by Credit Grantors
HDFC BANK LIMITED
1	AMRIK SINGH SOHI
2	DINESH GOGNA
3	DINESH OSWAL
4	HARBHAJAN KAUR BAL
5	JAWAHAR LAL OSWAL
6	KAMAL OSWAL
7	KANWAR SAIN MAINI
8	NARAYAN DASS JAIN
9	OM PRAKASH SAHNI
10	YASH PAUL SACHDEVA

List of Credit Grantors to which NAHAR INDUSTRIAL ENTERPRISES LIMITED is a defaulter:

Names of Credit Grantors	Branch	Amount  (Rs. in Millions)
HDFC BANK LIMITED	LUDHIANA	84.500
	Total	84.500

Suit-filed accounts (Willful Defaulters) of Rs. 25 Lacs and above as on 11-Nov-2014

Borrowers details

Borrower name	NAHAR INDUSTRIAL ENTERPRISES LIMITED
D&B D-U-N-S® Numbers
Address	FOCAL POINT, LUDHIANA, PUNJAB – 141 010

Name of Directors Reported by Credit Grantors Filing the Suit:

Sr.No.	Directors Reported by Credit Grantors
ICICI BANK LIMITED
1	AMARJEET SINGH
2	Dinesh Gogna
3	DINESH OSWAL
4	H K BAL
5	JAWAHAR LAL OSWAL
6	K S MAINI
7	KAMAL OSWAL
8	N. D. JAIN
9	O.P. SAHNI
10	Y. P. SACHDEVA

List of Credit Grantors to which NAHAR INDUSTRIAL ENTERPRISES LIMITED is a defaulter:

Names of Credit Grantors	Branch	Amount  (Rs. in Millions)
ICICI BANK LIMITED	LUDHIANA	451.100
	Total	451.100

LITIGATION DETAILS:

HIGH COURT OF PUNJAB AND HARYANA

CHANDGARH

Case Details For Case CWP-9070-2010
Diary Number	512292	District	UT-CHANDIGARH
Category	6.17-WRIT PETITION EXCISE CUSTOMS	Main Case Detail	--
Party Detail	UNION OF INDIA THROUGH C.C.E. CHANDIGARH V/S NAHAR INDUSTRIAL ENTERPRISES LTD.
Advocate Name	SANJEEV KAUSHIK, SURJEET BHADU FOR CAVEATOR	List Type
Status	PENDING	Next date	Not Available
Miscellaneous Applications
CWP-16353-2010		IN CWP-9070-2010
Case Listing Details
Cause List Date	List Type:Sr. No.	Bench	Order Link
17-MAY-2010	:112	HON'BLE MR. JUSTICE ADARSH KUMAR GOEL; HON'BLE MR. JUSTICE ALOK SINGH	----
Judgment Details For Case: CWP-9070-2010  Party Detail: UNION OF INDIA THROUGH C.C.E. CHANDIGARH V/S NAHAR INDUSTRIAL ENTERPRISES LTD.
Order Date	Order Type	Bench	Judgment Link
No Judgment/Order Found.
Designed and Developed by National Informatics Centre  Contents Published and Managed by Punjab & Haryana High Court, Chandigarh.

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Deferred Payment Liabilities	0.000	9.180
Loans and Advances from related parties	421.401	381.426
Total	421.401	390.606

PERFORMANCE REVIEW

The company operates in three main business segments viz. Yarn, Fabrics and Sugar. The textile division

(comprises of yarn and fabrics) accounts for 95.43% of the total turnover (including inter-segment) of the company for the year ended 31 March, 2014. Sugar and others also accounts for 4.57% of the total turnover of the company for the year ended 31 March, 2014.

The business wise performance of each segment is as under:-

Yarn: The Company has produced 70,595 MTs of yarn as against 67,960 MTs in the previous year. The total

turnover of this segment (including inter-segment) has increased to Rs. 1,5895.600millions as against Rs. 14280.600 millions in the previous year showing an increase of 11.31%.

Fabrics: The Company has produced 72,877,934 meters of fabrics (both grey and processed) as against 74,431,448 meters in the previous year. The total turnover of this segment (including inter-segment) has increased to Rs. 10602.500millions as against Rs.9460.300millions in the previous year showing an increase of 12.07%.

Sugar: The Company has produced 412,720 Qtls. of sugar as against 402,040 Qtls. in the previous year. The total turnover of this segment is Rs. 1260.100millions as against Rs. 1698.500 millions in the previous year showing a decrease of 25.81%.

During the year the company has achieved operational income of Rs. 18545.700millions as against Rs. 17163.100millions showing an increase of 8.06% over the previous year. The company has earned Profit before finance cost, Depreciation and tax of Rs. 3312.600millions as against Rs. 3035.000 millions in the previous year. After providing for Finance Cost of Rs. 1058.700millions (previous year Rs. 1310.300 millions), Depreciation of Rs. 1203.100millions (previous year Rs. 1104.800 millions) and Tax Expenses of Rs. 358.300millions (previous year Rs. 201.500 millions) the Profit for the year comes to Rs. 692.500millions as against Rs. 418.400millions in the previous year. Indian textile industry has performed extremely well during the year under review. With growing demand, recovery in export markets, better realizations, stable cotton prices and better planning, your company has achieved satisfactory performance. The overall textile market is depressed since April, 2014 and there is sluggish demand for textile products. The management is hopeful that the company shall be able to meet the challenges ahead and further improve its performance in the coming periods.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE/DEVELOPMENT (TEXTILE)

The Indian textile and apparel industry is one of the leading industries of the Indian economy. The growth and all round development of this industry has a direct bearing on the improvement of Indian economy. The textile and apparel industry plays an important role through its contribution to industrial output, employment generation and the export earnings of the country. Post Multi Fiber Agreement on January 1, 2005, the textile and apparel industry has witnessed a clear distinction between countries as production and consumption hubs. Developed countries like the USA, countries of the European Union and Japan have emerged as consuming countries while developing countries like India, China and Bangladesh are producing countries. For the development and to boost the textile and apparel industry, the Indian Government has been supporting the textile industry through various policies incentives from time to time. In the Union Budget 2014-15, the Central Government has allocated Rs. 23000.000 millions for TUFs and Rs. 2400.000 millions towards integrated textile parks which will help the textile industry to grow at a faster pace. Overall, textile and apparel industry contributes 4% to India GDP.

In FY 2013-14 there was a weak recovery in the economy of the USA and European Union. The emerging economies like China and India has also witnessed a general economic slowdown. As per the data made available by the Central Statistical Organization (CSO), India's GDP growth in 2013-14 is 4.7%. The manufacturing indices had declined, commodity prices stayed at high levels. The high borrowing cost to combat inflation, low investment in infrastructure and other sectors were responsible for this lower growth. However, the slow GDP growth appears to have bottomed out and post general elections, economic activity is expected to pick up. According to the Technopak Report, 2014 the expected slower annual GDP growth in the advanced economies is directly impacting the consumption of textile and apparel products, hence reducing its demand. On the other hand, the expected higher GDP growth of the developing countries has led to an increase in purchasing power of consumers, favoring the growth in textile and apparel consumption in these countries.

Indian textile industry has performed extremely well during the year. The strong performance across different segments of the industry is evident from the strong domestic production as well as exports. It is expected that same trend will continue as Chinese exports are slowing down on account of various factors which include increase in domestic demand and rising input costs. China is losing its strength as low cost manufacturing country, which will help India to become a textile power house. As a measure of growing interest in the Indian textiles and apparel industry, number of reputed houses has opened their sourcing / liaison office in India. According to Technopak Report, 2014, India's textile and apparel industry is expected to grow at a CAGR of 9% from the market size of US $ 95 billion in 2013 to reach a market size of US $ 226 billion by the end of 2023. This is an indicator for the growth of Indian textile and apparel industry to increase its share in the global market.

INDUSTRY STRUCTURE/DEVELOPMENT (SUGAR)

The Indian sugar industry is characterized by the coexistence of private, cooperative and public sector, supporting over 50 million farmers and their families. It is second largest agro-based industry after textiles. The growth of sugar industry has powerful impact on the rural economy. Recently, the Government of India has implemented the recommendations of Dr C. Rangarajan Committee to reform the sugar sector. It took the positive step of abolition of the levy sugar obligation of the sugar mills. This would help in removing the substantial burden of levy subsidy from the mills. Simultaneously the Central Government has done away with the free sale sugar release mechanism, thereby freeing mills to sell sugar without any limitation of periodic quotas as in the past.

Outlook

The US market and EU region account for the bulk of textile exports from India. Economic recession in these markets since 2008 have impacted the textile exports from India. To reduce the dependence on these markets the government has incorporated several measures in the Focus Market Scheme. Continued government schemes in the form of policies like Focus Market Scheme would encourage exporters to explore markets outside the traditional destinations of the US and EU. Though the textile industry is depressed since April 2014 but it is hoped that it would improve in the coming periods. According to Technopak Report, 2014 the export market of textile and apparel would grow from US $ 36 billion in the year 2013 to US $ 85 billion by the end of 2023. It is expected that domestic market would also grow from US $ 59 billion in 2013 to US $ 141 billion by the end of 2023. India's growing population has been a key driver of textile consumption growth in the country. Changing lifestyle, rising income and growing spending capacities, increasing urbanization, rising middle class and increasing demand for quality products are also set to increase the demand for apparel. With the expected revival in the global economy and hope for the improving business environment in the country, the outlook for the Indian textile industry is expected to be bright. Supportive policy regime and the absolute commitment of private enterprise would add strength to Indian textile industry.

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS

FOR THE QUARTER ENDED 31^ST DECEMBER 2014

(Rs. In Millions)

SI. No.	Particulars	Quarter Ended 31.12.2014 (Unaudited)	Quarter Ended 30.09.2014 (Unaudited)	Nine Months Ended 31.12.2014 (Unaudited)
1	Income From Operations
	a) Net Sales/Income from Operations (Net of Excise Duty)	4427.240	4300.393	13583.353
	b) Other Operating Income	66.411	38.573	150.749
	Total Income from operations(net) (a+b)	4493.651	4338.966	13734.102
2	Expenses
	a) Cost of Materials Consumed	2248.303	2293.672	6990.606
	b) Purchases of stock-in-trade	8.926	29.179	38.873
	c) Changes in Inventories of Finished Goods, works-in-progress and stock-in-trade	185.484	58.726	678.389
	d) Employee Benefits Expense	400.236	392.987	1160.219
	e) Depreciation and Amortization Expense	317.507	366.045	1160.219
	f) Power & Fuel	596.667	643.453	1838.166
	g) Other Expenses	523.134	510.288	1536.457
	Total Expenses (a to g)	4280.257	4294.350	13284.364
3	Profit from Operations before Other Income, Finance Costs and Exceptional Items	213.394	44.616	449.738
4	Other Income	11.477	11.054	45.230
5	Profit from Ordinary Activities before Finance Costs and Exceptional Items	224.871	55.670	494.968
6	Finance Costs	204.878	239.070	722.519
7	Profit from Ordinary Activities after Finance Costs but before Exceptional Items	19.993	(183.400)	(227.551)
8	Exceptional items	79.902	--	79.902
9	Profit from Ordinary Activities before Tax	(59.909)	(183.400)	(307.453)
10	Tax Expense	--	(54.890)	(65.000)
11	Net Profit from Ordinary Activities after tax	(59.909)	(128.510)	(242.453)
12	Extraordinary Items (Net of Tax Expense)	--	--	--
13	Net Profit for the Period	(59.909)	(128.510)	(242.453)
14	Paid-up Equity Share Capital (Face Value - Rs. 10/- per share)	398.351	398.351	398.351
15	Reserves excluding Revaluation Reserves as per Balance Sheet of previous accounting year	--	--	--
16	Earnings Per Share before and after Extraordinary Items (In Rs.) (not annualised)
	(a) Basic	(1.50)	(3.23)	(6.09)
	(b) Diluted	(1.50)	(3.23)	(6.09)
A	PARTICULARS OF SHAREHOLDING
1	Public shareholdings
	- Number of Shares	12695940	12695940	12695940
	- Percentage of Shareholding	31.87	31.87	31.87
2	Promoters & Promoter Group Shareholding
	a) Pledged / Encumbered
	- Number of Shares	--	--	--
	- Percentage of Shares (as a % of the total Shareholding of promoter and promoter Group)	--	--	--
	- Percentage of shares (as a % of the total share capital of the company)	--	--	--
	b) Non-encumbered
	- Number of Shares	27139201	27139201	27139201
	- Percentage of shares (as a % of the total shareholding of Promoter and Promoter Group)	100.00	100.00	100.00
	- Percentage of shares (as a % of the total share capital of the company)	68.13	68.13	68.13
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	--
	Received during the quarter	54
	Disposed of during the quarter	54
	Remaining unresolved at the end of the quarter	--

SEGMENTWISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. In Millions)

	Quarter Ended 31.12.2014 (Unaudited)	Quarter Ended 30.09.2014 (Unaudited)	Nine Months Ended 31.12.2014 (Unaudited)
Particulars
Segment Revenue
a)Textile	4166.706	4072.476	12732.289
b) Sugar	265.235	227.200	854.522
c) Others	0.451	0.765	1.742
Total	4432.392	4300.441	13588.553
Less: Inter Segment Revenue	5.152	0.048	5.200
Net Sales/Income from Operations	4427.240	4300.393	13853.353
Segment Results
Profit/(Loss) before Tax .Exceptional items and Interest
from each segment
a)Textile	263.854	101.547	597.891
b) Sugar	(44.024)	(1.712)	(79.450)
c) Others	5.041	(14.165)	(23.473)
Total	224.871	55.670	494.968
Less: i) Interest	204.878	239.070	79.902
II) Exceptional Items	79.902	--	79.902
Total Profit / (Loss) before Tax	(59.909)	(183.400)	(307.453)
Capital Employed
(Segment assets - Segment Liabilities)
a)Textile	9077.671	9339.722	9077.671
b) Sugar	481.645	621.148	481.645
c) Other (unallocable)	1848.626	1824.080	1848.626
Total	11407.942	11784.950	11407.942

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10511273	26/07/2014 *	825,000,000.00	State Bank of India	Industrial Finance Branch, Golden Tower,, Dholewa  l Chowk, G.T. Road,, Ludhiana, Punjab - 141001, IN  DIA	C16504425
2	10486529	26/07/2014 *	99,678,000.00	IDBI Bank Limited	S.C.O. 126-128, Ist Floor,, Kalinga Tower, Feroze  Gandhi Market,, Ludhiana, Punjab - 141001, INDIA	C14449425
3	10408509	06/06/2014 *	250,000,000.00	IDBI Bank Limited	S.C.O. 126-128, Kalinga Tower,, Feroze Gandhi Ma  rket,, Ludhiana, Punjab - 141001, INDIA	C06059679
4	10403559	06/06/2014 *	400,000,000.00	State Bank of India	IFB, Golden Tower,, Dholewal Chowk,, Ludhiana, Pu  njab - 141001, INDIA	C07106065
5	10384996	06/06/2014 *	870,000,000.00	State Bank of Patiala	Commercial Branch, Aarti Complex,, G.T. Road,, Lu  dhiana, Punjab - 141001, INDIA	C06182745
6	10347326	06/06/2014 *	300,000,000.00	State Bank of Patiala	Commercial Branch, Aarti Complex,, Miller Ganj,,  Ludhiana, Punjab - 141001, INDIA	C06181556
7	10333237	06/06/2014 *	325,000,000.00	State Bank of Patiala	Commercial Branch, Aarti Complex,, Miller Ganj,,  Ludhiana, Punjab - 141001, INDIA	C06217426
8	10326751	13/12/2011	400,000,000.00	Canara Bank	Bharat Nagar Chowk Branch, Ludhiana, Punjab - 1410  01, INDIA	B29185543
9	10294403	06/06/2014 *	1,330,000,000.00	Allahabad Bank	IIFB, 165, Industrial Area-A, Cheema Chowk, Ludhi  ana, Punjab - 141001, INDIA	C06985907
10	10271563	06/06/2014 *	500,000,000.00	Indian Overseas Bank	Kacheri Road Branch,, Ludhiana, Punjab - 141001, I  NDIA	C06992655

* Date of charge modification

FIXED ASSETS

• Leasehold Land
• Freehold Land
• Building
• Plant and Machinery
• Furniture and Fixture
• Office Equipment
• Vehicles
• 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 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. 63.61
UK Pound	1	Rs. 97.26
Euro	1	Rs. 69.63

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	SUB
Report Prepared by :	JYO

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	YES
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		36

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.