MIRA INFORM REPORT

Report No. :	311637
Report Date :	10.03.2015

IDENTIFICATION DETAILS

Name :	GTN INDUSTRIES LIMITED [w.e.f. 27.12.2005]
Formerly Known As :	GTN TEXTILES LIMITED
Registered Office :	Chitkul Village, Pattancheru Mandal, Medak-502307, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	02.08.1962
Com. Reg. No.:	01-054323
Capital Investment / Paid-up Capital :	Rs.275.496 Million
CIN No.: [Company Identification No.]	L18101AP1962PLC054323
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	A Public Limited Liability Company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Cotton Yarn, Processed Yarn and Knitted Fabrics.
No. of Employees :	1460 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 1000000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Reserves of the company seems to be low during 2014. However, trade relations are fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealings with some cautions.

NOTES:

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long term: Term loan facilities = B
Rating Explanation	Have high risk of default.
Date	December, 2014

Rating Agency Name	ICRA
Rating	Short term: Non fund based facilities = A4
Rating Explanation	Have minimal degree of safety and carry very high credit risk.
Date	December, 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) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

LOCATIONS

Registered Office/ Factory :	Chitkul Village, Pattancheru Mandal, Medak – 502307, Andhra Pradesh, India
Tel. No.:	91-8455-226108/226109
Fax No.:	91-8455-226112
E-Mail :	sharedept@gtnindustries.com
Corporate Office :	GTN House, Plot No. 29, Nagarjuna Hills, Punjagutta, Hyderabad – 500082, India
Tel. No.:	91-40-23351585 (4 lines)
Fax No.:	91-40-23358387
E-Mail :	exports@gtnhyd.com hyd1_patodia@gtnindustries.com
Administrative office :	Erumathala P.O Aluva, Ernakulam – 683105, Kerala, India
Tel. No.:	91-484-2839491
Fax No.:	91-484-2838585
E-Mail :	cg@gtntextiles.com
Website :	www.gtindustries.com
Factory:	Nagpur Unit: Khurajgaon Village, Saoner Tahsil, Nagpur – 441112, Maharashtra, India Tel No.: 91-7113-232363/232448 Fax No.: 91-7113-232447 Doubling Unit: Chitkul Village, Medak – 502329, Andhra Pradesh, India Shadnagar Unit: Gundallapotlappally Balanagar, Nawdal, Near Shadnagar, Mehaboobnagar – 509202, Maharashtra, India Tel No.: 91-8542-230035/230036 Fax No.: 91-8542-230007

DIRECTORS

As On 31.03.2014

Name :

Mr. Mahendra Kumar Patodia

Designation :

Managing Director and Chairman

Address :

Plot No. 145, Road No. 3, Banjara Hills, Hyderabad-500034, Andhra Pradesh, India

Date of Birth/Age:

25.08.1951

Date of Appointment :

07.08.2014

DIN No.:

00004752

Other Directorship :

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U51909TG1981PLC041292	GTN ENGINEERING(INDIA) LIMITED	Director	24/07/1981	24/07/1981	-	Active	NO
2	U67120WB1979PTC031876	MEGHA INVESTMENTS PRIVATE LIMITED	Director	25/04/1987	25/04/1987	-	Active	NO
3	U74899DL1988PTC030572	EMKAY YARN PRIVATE LIMITED	Director	10/02/1988	10/02/1988	15/01/2009	Active	NO
4	U65999WB1990PTC048387	FORWARD FINANCE PRIVATE LIMITED	Director	14/02/1990	14/02/1990	-	Amalgamated	NO
5	U65999WB1990PTC048410	EMKAYPEE INVESTMENTS PRIVATE LIMITED	Director	16/02/1990	16/02/1990	-	Active	NO
6	U67120WB1961PTC025238	MADAN LAL BRIJ LAL PRIVATE LIMITED	Director	31/01/1995	31/01/1995	04/02/2011	Active	NO
7	U65923TG1996PTC023431	MODESTY FINANCE AND INVESTMENTS PRIVATE LIMITED	Director	30/06/1996	30/06/1996	20/11/2009	Active	NO
8	U65993TG1996PLC025483	JEL FINANCE AND INVESTMENTS LIMITED	Director	14/10/1996	14/10/1996	-	Active	NO
9	U17300TG1994PLC018701	PERFECT KNITTERS LIMITED	Director	18/05/2002	18/05/2002	-	Amalgamated	NO
10	U67190WB1990PTC048536	M B CREDIT PRIVATE LIMITED	Director	27/01/2003	27/01/2003	-	Amalgamated	NO
11	U51494TG2003PLC040460	COTSTYLE APPARELS LIMITED	Director	07/02/2003	07/02/2003	-	Amalgamated	NO
12	U17291TG2003PLC040852	MODESTY TEXTILES LIMITED	Director	21/04/2003	21/04/2003	-	Active	NO
13	U17116TG2003PLC041256	PERFECT SPINNERS LIMITED	Director	30/06/2003	30/06/2003	-	Active	NO
14	L18101AP1962PLC054323	GTN INDUSTRIES LIMITED	Managing director	07/08/2014	01/12/2004	-	Active	NO
15	U17120MH1967PLC013669	CONFEDERATION OF INDIAN TEXTILE INDUSTRY	Director	28/11/2014	15/11/2013	-	Active	NO

Name :

Mr. Banwari Lal Singhal

Designation :

Director

Address :

599 B, ‘O’ Block, Alipore, Kolkata-700053, West Bengal, India

Date of Birth/Age:

15.04.1947

Date of Appointment :

22.11.2006

DIN No.:

00006433

Other Directorship :

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L70200TZ1936PLC000001	PRIME URBAN DEVELOPMENT INDIA LIMITED	Director	14/08/2014	15/05/1988	-	Active	NO
2	U67190WB1990PTC048536	M B CREDIT PRIVATE LIMITED	Director	08/03/1990	08/03/1990	-	Amalgamated	NO
3	U67120WB1989PTC046638	PRITI CREDIT PRIVATE LIMITED	Director	15/07/1992	15/07/1992	-	Active	NO
4	U67120KL1981PLC013244	GTN ENTERPRISES LIMITED	Director	19/09/2014	21/06/1994	-	Active	NO
5	U67120WB1995PTC072283	BLS SECURITIES PRIVATE LIMITED	Director	22/06/1995	22/06/1995	-	Active	NO
6	L18101KL1991PLC006194	PATSPIN INDIA LTD	Director	20/06/2000	20/06/2000	31/07/2014	Active	NO
7	U65910TZ1996PLC007068	ATL TEXTILE PROCESSORS LIMITED	Director	01/01/2005	01/01/2005	-	Active	NO
8	L18101KL2005PLC018062	GTN TEXTILES LIMITED	Director	19/09/2014	08/04/2005	-	Active	NO
9	L18101AP1962PLC054323	GTN INDUSTRIES LIMITED	Director	22/11/2006	22/11/2006	-	Active	NO

Name :

Mr. Vikram Ravindra Mamidipudi

Designation :

Director

Address :

68, Gunrock Enclave, Secundrabad-500007, Andhra Pradesh, India

Date of Birth/Age:

18.05.1956

Date of Appointment :

17.12.2005

DIN No.:

00008241

Other Directorship :

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U51398TG1987PTC007885	NORMAK FASHIONS PRIVATE LIMITED	Director	18/11/1988	18/11/1988	-	Active	NO
2	U74140TG1992PTC014155	M.ANANDAM CONSULTANCY SERVICES PRIVATE LIMITED	Director	30/04/1992	30/04/1992	-	Active	NO
3	L85110KA1992PLC013421	ASM TECHNOLOGIES LIMITED	Director	28/06/2014	30/06/1998	-	Active	NO
4	U24110TG1995PLC022303	GLOCHEM INDUSTRIES LIMITED	Director	30/09/2014	24/03/1999	-	Active	NO
5	U01119TG1992PTC014048	WINGS INFONET Private Limited	Director	11/05/2000	11/05/2000	-	Active	NO
6	U74140TG2000PTC034461	ASSOCIATED BUSINESS COUNSELLILNG SERVICES PRIVATE LIMITED	Director	10/05/2001	10/05/2001	27/10/2014	Active	NO
7	U25209TN1978PTC007619	A-BOND STRANDS PRIVATE LIMITED	Director	31/07/2002	31/07/2002	-	Active	NO
8	U36911TG2003PTC040714	NORMAK INDIA PRIVATE LIMITED	Director	25/03/2003	25/03/2003	27/10/2014	Active	NO
9	U72200TG2004PTC042465	PYTHIAN INDIA PRIVATE LIMITED	Alternate director	30/04/2004	30/04/2004	14/04/2007	Active	NO
10	U15549TG2004PTC043249	TAZA RICA BEVERAGES PRIVATE LIMITED	Director	14/09/2004	14/09/2004	08/09/2008	Active	NO
11	L27100AP1989PLC010122	ZENOTECH LABORATORIES LIMITED	Additional director	01/10/2009	29/11/2005	26/02/2010	Active	NO
12	L18101AP1962PLC054323	GTN INDUSTRIES LIMITED	Director	17/12/2005	17/12/2005	-	Active	NO
13	U65990MH1993PLC071003	CANARA ROBECO ASSET MANAGEMENT COMPANY LIMITED	Director	26/06/2007	18/04/2007	16/08/2007	Active	NO
14	U93000TG2008PTC057571	PACIFIC RIM ALLIANCE INDIA PRIVATE LIMITED	Director	12/02/2008	12/02/2008	09/05/2008	Active	NO
15	U74900TG2008PTC061647	ESTELLE INDIA PRIVATE LIMITED	Director	31/10/2008	31/10/2008	-	Active	NO
16	U80302TG2002NPL039397	INSTITUTE OF INSURANCE AND RISK MANAGEMENT	Director	17/07/2009	25/03/2009	-	Active	NO
17	U80101TG1995PTC022594	TRIUMPHANT INSTITUTE OF MANAGEMENT EDUCATION PRIVATE LIMITED	Director	22/07/2009	22/07/2009	-	Active	NO
18	L65191RJ1943PLC000135	THE BANK OF RAJASTHAN LIMITED	Director	14/12/2009	14/12/2009	-	Amalgamated	NO
19	U40109TG2008PLC061202	AMRELI POWER PROJECTS LIMITED	Director	29/09/2011	03/12/2010	-	Active	NO
20	U65922DL1996PLC249927	Venture Finance and Development Corporation Limited.	Director	28/09/2012	23/08/2012	-	Active	NO
21	U80901TG2012NPL083292	LIFE SKILLS AND LIVELIHOOD SKILLS - INTERNATIONAL	Director	22/04/2013	13/10/2012	-	Active	NO
22	U24239TG2005PTC047102	AHLADA ENGINEERS PRIVATE LIMITED	Director	27/09/2013	23/08/2013	-	Active	NO
23	U40101PN2002PTC152951	SPECTRUM RENEWABLE ENERGY PRIVATE LIMITED	Director	30/09/2014	03/10/2013	-	Active	NO
24	U51909TG1981PLC041292	GTN ENGINEERING(INDIA) LIMITED	Director	04/07/2014	04/07/2014	-	Active	NO
25	U93090TN1962PLC004947	CHETTINAD CEMENT CORPORATION LIMITED	Director	27/08/2014	27/08/2014	-	Active	NO
26	U72900TG2010FTC068332	Facebook India Online Services Private Limited	Additional director	26/02/2015	26/02/2015	-	Active	NO

Name :

Mr. George Joseph Chempakathinal

Designation :

Director

Address :

301, Swathi Apartment, A No. 7-1-455/1, Ameerpet, Hyderabad-500016, Andhra Pradesh, India

Date of Birth/Age:

02.02.1950

Date of Appointment :

28.01.2010

DIN No.:

00309739

Other Directorship :

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17300TG1994PLC018701	PERFECT KNITTERS LIMITED	Director	30/10/1995	30/10/1995	-	Amalgamated	NO
2	U18101TG2000PLC034077	IMPERIAL GARMENTS LIMITED	Whole-time director	31/08/2012	31/08/2009	-	Amalgamated	NO
3	L18101AP1962PLC054323	GTN INDUSTRIES LIMITED	Additional director	28/01/2010	28/01/2010	-	Active	NO
4	U51909TG1981PLC041292	GTN ENGINEERING(INDIA) LIMITED	Additional director	07/12/2011	07/12/2011	-	Active	NO

Name :

Mrs. Rajul Kothari

Designation :

Independent Woman Director (From 07.08.2014)

KEY EXECUTIVES

Name :	Mr. C.R. Gang
Designation :	Chief Financial Officer
Name :	Mr. P. Prabhakara Rao
Designation :	Company Secretary
Pan No.:	ABKPP2368M

SHAREHOLDING PATTERN

AS ON 31.12.2014

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3613149	20.60
Bodies Corporate	9425679	53.74
Sub Total	13038828	74.34
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	13038828	74.34
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1686	0.01
Financial Institutions / Banks	1067	0.01
Insurance Companies	87377	0.50
Foreign Institutional Investors	1900	0.01
Sub Total	92030	0.52
(2) Non-Institutions
Bodies Corporate	340608	1.94
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	2467450	14.07
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	1566366	8.93
Any Others (Specify)	35096	0.20
Clearing Members	35096	0.20
Sub Total	4409520	25.14
Total Public shareholding (B)	4501550	25.66
Total (A)+(B)	17540378	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)	17540378	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cotton Yarn, Processed Yarn and Knitted Fabrics.

Products :

ITEM CODE NO. (ITC CODE)	PRODUCT DESCRIPTION
52.05	Cotton Yarn / Processed Yarn
60.01	Knitted Fabric

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Available

Imports :

Not Available

Terms :

Not Available

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Not Available

Customers :

Not Available

No. of Employees :

1460 (Approximately)

Bankers :

· Central Bank of India

· State Bank of India

· IDBI Bank Limited

· Export-Import Bank of India

· ING Vysya Bank Limited

· State Bank of Travancore

Facilities :

SECURED LOANS	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Long Term Borrowings
Term Loans
- from Banks	699.711	754.973
- from a Financial Institution	411.647	433.497
Less : Current Maturities	136.898	74.540
Total [A]	974.460	1113.930
Short Term Borrowings
Working capital loans	783.559	760.257
Total [B]	783.559	760.257
Total [A+B]	1758.019	1874.187

NOTES:

Long term loans

(i) Term loans are secured by first charge on immovable assets (except those mentioned in para (ii) below), both present and future, by way of equitable mortgage and hypothecation of movable fixed assets of the Company and further secured by way of a second charge, on the current assets, present and future, ranking paripassu, inter-se among the term lenders. These loans are guaranteed personally by the Managing Director and also secured by pledge of equity shares to the extent of 51% of promoters’ holding. Term loans are repayable in quarterly installments. Interest rate for TUF Loans is 3% to 9.75% p.a. {net of subsidy} (Previous year 3% to 9.75% p.a.) {Net of subsidy} and for Non-TUF loans is 10% p.a. to 14.25%. (Previous Year 10% to 14.75% p.a.)

(ii) One of the term loans amounting to Rs. 1126 lacs (Previous Year Rs.1240 Million) availed from a Bank is secured on exclusive charge basis on the specific machinery financed out of the said loan. It is repayable in quarterly installments. Interest Rate-14.25%p.a {linked with base rate} (Previous Year 14.75% p.a.)

Short Term Borrowings

Working Capital Loans stated above and Non-Fund Based limits of Rs. 155.952 Million (Previous Year Rs. 232.402 Million) are secured by a first charge by way of hypothecation of current assets of the Company, both present and future and by way of second charge on the fixed assets mentioned in (a) (i) and 3(a) (ii) above, ranking paripassu, interest among working capital banks. These loans/Non-fund based facilities are further guaranteed by Managing Director and also secured by pledge of Equity Shares to the extent of 51% of promoters’ holding-Interest on Packing Credit in Foreign Currency - 3% p.a. to 4% p.a. (Previous Year 3% p.a. to 4% p.a.) and Interest on Rupee Working Capital- 12%p.a. to 14% p.a. (Previous Year 12% p.a. to 14% p.a.).

Auditors :
Name :	Lodha and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India
Membership :	--
Associates/Subsidiaries :	· Perfect Knitters Limited · Imperial Garments Limited · Purav Trading Limited
Related Parties :	· Patcot Company · Perfect Cotton Company · Standard Cotton Corporation

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Million
3500000	Redeemable Preferences Shares	Rs.100/- each	Rs.350.000 Million
	TOTAL		Rs.550.000 Million

Issued Capital :

No. of Shares	Type	Value	Amount
17558778	Equity Shares	Rs. 10/- each	Rs.175.588 Million
200000	0.01% Cumulative Redeemable Preference shares	Rs.100/- each	Rs.20.000 Million
800000	10% Cumulative Redeemable Preference shares	Rs.100/- each	Rs.80.000 Million
	TOTAL		Rs.275.588 Million

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
17558778	Equity Shares	Rs. 10/- each	Rs.175.588 Million
18400	Less: Forfeited Equity Shares	Rs. 5/- each	Rs.0.092 Million
200000	0.01% Cumulative Redeemable Preference shares	Rs.100/- each	Rs.20.000 Million
800000	10% Cumulative Redeemable Preference shares	Rs.100/- each	Rs.80.000 Million
	TOTAL		Rs.275.496 Million

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	275.496	175.496	175.496
(b) Reserves & Surplus	79.805	88.525	252.184
(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)	355.301	264.021	427.680
(3) Non-Current Liabilities
(a) long-term borrowings	1060.178	1207.232	1091.254
(b) Deferred tax liabilities (Net)	22.652	60.296	106.533
(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)	1082.830	1267.528	1197.787
(4) Current Liabilities
(a) Short term borrowings	788.199	764.877	705.265
(b) Trade payables	367.529	514.657	338.827
(c) Other current liabilities	178.440	122.458	210.598
(d) Short-term provisions	27.564	24.526	18.798
Total Current Liabilities (4)	1361.732	1426.518	1273.488
TOTAL	2799.863	2958.067	2898.955
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1364.081	1435.576	1514.777
(ii) Intangible Assets	0.244	0.309	0.509
(iii) Capital work-in-progress	7.977	1.188	0.105
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.005	0.005
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	64.414	78.666	69.990
(e) Other Non-current assets	20.440	32.280	16.605
Total Non-Current Assets	1457.156	1548.024	1601.991
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	745.233	763.221	889.933
(c) Trade receivables	276.431	442.576	191.970
(d) Cash and cash equivalents	89.744	22.532	81.242
(e) Short-term loans and advances	45.699	55.547	83.505
(f) Other current assets	185.600	126.167	50.314
Total Current Assets	1342.707	1410.043	1296.964
TOTAL	2799.863	2958.067	2898.955

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2014	31.03.2013	31.03.2012
	SALES
		Income		5617.837	4222.609	3801.848
		Other Income		23.590	25.496	18.790
		TOTAL		5641.427	4248.105	3820.638
Less	EXPENSES
		Cost of Materials Consumed		1982.366	1712.665	1901.654
		Purchase of Stock-in-trade		2095.320	1061.131	711.999
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade		(67.873)	51.143	7.524
		Employee Benefits Expenses		350.779	304.439	276.450
		Other Expenses		933.118	877.355	747.887
		Exceptional Items		0.000	74.823	0.000
		TOTAL		5293.710	4081.556	3645.514
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION			347.717	166.549	175.124
Less	FINANCIAL EXPENSES			240.318	229.786	170.175
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION			107.399	-63.237	4.949
Less	DEPRECIATION/ AMORTISATION			149.496	151.734	156.268
	PROFIT/(LOSS) BEFORE TAX			(42.097)	(214.971)	(151.319)
Less	TAX			(33.844)	(51.859)	(59.480)
	PROFIT/(LOSS) AFTER TAX			(8.253)	(163.112)	(91.839)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			(88.061)	3.265	95.104
Add	SET OF AGAINST GENERAL RESERVE			0.000	71.786	0.000
	BALANCE CARRIED TO THE B/S			(96.314)	(88.061)	3.265
	EARNINGS IN FOREIGN CURRENCY ON FOB			3436.610	2299.416	2132.703
	IMPORTS
			Raw Materials	466.118	482.803	452.899
			Stores	6.528	7.550	8.338
			Capital Goods	44.554	62.720	36.118
	TOTAL IMPORTS			517.200	553.073	497.355
	Earnings Per Share (Rs.)			(0.56)	(9.30)	(5.24)

QUARTERLY RESULTS

(Rs. In Million)

Particulars	30.06.2014 (Unaudited)	30.09.2014 (Unaudited)	31.12.2014 (Unaudited)
	1^st Quarter	2^nd Quarter
Net Sales	1185.700	1162.200	886.200
Total Expenditure	1124.000	1140.200	865.600
PBIDT (Excluding Other Income)	61.700	22.000	20.600
Other Income	01.800	06.600	9.400
Operating Profit	63.500	28.600	30.000
Interest	60.900	61.500	50.500
Exceptional Items	0.000	7.000	0.000
PBDT	2.600	(25.900)	(20.500)
Depreciation	23.400	22.800	20.700
Profit Before Tax	(20.800)	(48.700)	(41.200)
Tax	0.000	0.000	(0.200)
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	(20.800)	(48.700)	(41.000)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	(0.15)	(3.86)	(2.42)
Operating Profit Margin (PBDIT/Sales)	(%)	6.19	3.94	4.61
Return on Total Assets (PBT/Total Assets}	(%)	(1.51)	(7.27)	(5.22)
Return on Investment (ROI) (PBT/Networth)		(0.12)	(0.81)	(0.35)
Debt Equity Ratio (Total Debt /Networth)		5.20	7.47	4.20
Current Ratio (Current Asset/Current Liability)		0.99	0.99	1.02

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Share Capital	175.496	175.496	275.496
Reserves & Surplus	252.184	88.525	79.805
Net worth	427.680	264.021	355.301
long-term borrowings	1091.254	1207.232	1060.178
Short term borrowings	705.265	764.877	788.199
Total borrowings	1796.519	1972.109	1848.377
Debt/Equity ratio	4.201	7.470	5.202

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Sales	3801.848	4222.609	5617.837
		11.067	33.042

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Sales	3801.848	4222.609	5617.837
Profit	(91.839)	(163.112)	(8.253)
	(2.42%)	(3.86%)	(0.15%)

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------
22]	Litigations that the firm / promoter involved in	----------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------
26]	Buyer visit details	----------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

PERFORMANCE REVIEW

During the Financial Year, the Company has achieved aggregate turnover of Rs.5617.800 Million against Rs.4222.600 Million in the corresponding previous year. The operating and Net profit before depreciation and tax were higher by Rs.122.300 Million and Rs. 95.700 lacs respectively, as compared to the corresponding previous year.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Textile Industry is one of the oldest Industry in the country and plays an important role in the country’s economy in terms of Industrial Production, Employment and foreign exchange earnings. The Textile Industry has achieved a good growth in last two decades in terms of installed spindles and yarn production and India’s installed spindles were expanded to 49.44 million as on January, 2014, accounting for 20 per cent of world’s spindleage. This could happen due to buoyant domestic and international demand, conducive Government Policies. Indian Textile sector contributes to 4% to the country’s Gross Domestic Product (GDP), accounting for 14% of Industrial Production, 17% to the country’s exports and also employs about 3.5 crores workforce directly.

In addition, this industry provides indirect employment to large number of workforce and also helps to develop many related ancillaries which generates further employment. It is the second largest employment provider after the agricultural sector.

The Indian Textile Industry faced a difficult period since 2007-08 till December 2009 due to global recession and economic conditions leading to a sharp fall in consumer demand for textile products. In addition, unprecedented hike in minimum support price of seed cotton and massive exports of raw cotton resulted in substantial high cotton prices in the domestic market.

However, the markets became buoyant during 2010-11 on account of strong export and domestic demand arising from favourable demographic factor and rapid changes in the lifestyle of consumers. But again since June 2011, the Indian textile industry has severely affected due to increase in global cotton prices, Govt policy to allow export of cotton, increase in other costs like power, interest etc. withdrawal of DEPB from Oct, 2011 and volatile exchange rates.

It is hoped that textile industry may perform better after arrival of new cotton crop in Oct- Nov 2014 since it is expected that cotton crop is likely to be higher and prices are forecasted to be relatively stable. In addition, the continuation of TUF Scheme till 31-03-2017 and higher realization on exports due to stable Government and stability of the Rupee. These are favourable indicators for the reasonable growth of textile industry in the country.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Company is mainly engaged in the business of manufacture and sale (Domestic / Exports) of cotton yarn and accordingly this is the only Single Reportable Segment.

OUTLOOK

The Company continues to be an important player in the field of cotton yarn in medium and fine count segment and specialised products like gassed, mercerised and compact yarns. There are good prospects for increasing exports of cotton yarn to Asian countries. The company is making all efforts to explore new markets apart from current markets.

UNSECURED LOAN:

Particulars	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Long Term Borrowings
DEFERRED PAYMENT LIABILITIES
Sales Tax Deferment Loan (Interest free, repayable in yearly installments of varying amounts by August, 2023)	93.302	98.364
Less : Current Maturities	7.584	5.062
Total [A]	85.718	93.302
Short Term Borrowings
Public Deposits: (Repayable on demand) :
from Directors	0.420	0.370
from Others	4.220	4.250
Total [A]	4.640	4.620
Total [A+B]	90.355	97.922

STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER / NINE MONTHS ENDED 31^ST DECEMBER, 2014

(Rs. In Million)

Particulars	Quarter Ended	Quarter Ended	Nine Month Ended
	31.12.2014	30.09.2014	31.12.2014
	UNAUDITED
1. Income from operations
a) Net sales/ Income from operation (net of excise duty)	828.000	1092.700	3031.100
b) Other operating income	58.200	69.500	200.900
Total income from Operations(net)	886.200	1162.200	3235.300
2.Expenditure
a) Cost of material consumed	454.100	531.000	1510.600
b) Purchases of stock in trade	181.800	284.700	776.600
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	(4.400)	19.400	(12.000)
d) Employees benefit expenses	68.200	86.200	244.000
e) Depreciation and amortization expenses	20.700	22.800	66.900
f) Power	82.500	101.700	290.300
g) Other expenditure	83.400	117.200	320.000
Total expenses	886.300	1163.000	3196.400
3. Profit from operations before other income & financial costs	(0.100)	(0.800)	38.900
4. Other income	9.400	6.600	16.500
5. Profit from ordinary activities before finance costs	9.300	5.800	55.400
6. Finance costs	50.500	61.500	172.900
7. Net profit/(loss) from ordinary activities after finance costs but before exceptional items	(41.200)	(55.700)	(117.500)
8. Exceptional Items	---	7.000	7.000
9. Profit from ordinary activities before tax Expense:	(41.200)	(48.700)	(110.500)
10.Tax expenses	(0.200)	---	(0.200)
11.Net Profit / (Loss) from ordinary activities after tax (9-10)	(41.000)	(48.700)	(110.300)
12.Extraordinary Items (net of tax expense)	---	---	---
13.Net Profit / (Loss) for the period (11 -12)	(41.000)	(48.700)	(110.300)
14.Paid-up equity share capital (Nominal value Rs.10/- per share)	175.500	175.500	175.500
15. Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year	---	---	---
16.i) Earnings per share (before extraordinary items) of Rs.10/- each) (not annualised):
(a) Basic and diluted	(2.53)	(2.91)	(6.75)
A. Particulars of shareholding
1. Public Shareholding
- Number of shares	4501550	4501550	4501550
- Percentage of shareholding	25.66	25.66	25.66
2. Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	6677100	6677100	6677100
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	51.21	51.21	51.21
Percentage of shares (as a % of total share capital of the company)	38.07	38.07	38.07
b) Non Encumbered
Number of shares	6361728	6361728	6361728
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	48.79	48.79	48.79
Percentage of shares (as a % of total share capital of the company)	36.27	36.27	36.27
B. Investor Complaints
Pending at the beginning of the quarter	---
Receiving during the quarter	---
Disposed of during the quarter	---
Remaining unreserved at the end of the quarter	---

Note:

1. The above unaudited financial results have been reviewed by the Audit Committee of Directors and approved by the Board of Directors at its meeting held on 10th February, 2015.

2. The Company has only single reportable business segment i.e., 'Yarn segment' in terms of requirements of Accounting Standard 17 and has all its operations/assets located in India.

3. Deferred Tax Asset / reversal of deferred tax liability will be considered for recognition as at the end of the year.

4. a) In terms of the Shareholders' approval and in accordance with the Business Transfer Agreement, the Company has completed the process of hiving off of its Yarn Processing and Knitting Units as a going concern on "slump sale" basis on 4th September, 2014, resulting into capital gain of Rs. 70 lakhs which has been shown as an 'Exceptional Item' in the previous quarter. In view of the said hive off, the figures for the 9-months period ('period') include the results of these two Units upto 3rd September, 2014 and consequently, the figures of the current quarter / period are not comparable with those of the previous quarter/ period.

5. The Company is in the process of completing the formalities of transferring certain bank accounts / facilities, various agreements, licenses and immovable properties in favour of Transferee Company.

6. Consequent to the enactment of the Companies Act, 2013 (the Act) and its applicability for accounting periods commencing from April 1, 2014, the Company has realigned the remaining useful life of its fixed assets in accordance with the provisions prescribed under Schedule II to the Act. Accordingly, in case of assets which have completed their useful life, the carrying value (net of residual value) as at April 1, 2014 amounting to Rs. 211.46 lacs (net of Deferred Tax) has been adjusted to "Surplus / Deficit in the Statement of Profit and Loss" and in case of other assets the carrying value (net of residual value) is being depreciated over the revised remaining useful lives. Accordingly, the depredation for the quarter and period ended December 31, 2014 is lower by Rs. 55.63 lacs and Rs. 293.41 lacs, respectively.

7. The Statutory Auditors of the Company have carried out the limited review of the unaudited results of the Company for the quarter ended 31st December, 2014.

8. Previous quarters'/period's/year's figures have been regrouped/recast, wherever necessary to conform to the current quarter's/ period's classification.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10344194	15/05/2012 *	35,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B42976795
2	10344542	15/05/2012 *	35,000,000.00	IDBI BANK LIMITED	SPECIALISED CORPORATE BRANCH, MID CORPORATE GROUP, #5-9-89/1&2, CHAPEL ROAD, HYDERABAD, ANDHRA PRADESH - 500001, INDIA	B40627622
3	10347708	07/03/2012	70,000,000.00	CENTRAL BANK OF INDIA	CORPORATE FINANCE BRANCH, BANK STREET, HYDERABAD, ANDHRA PRADESH - 500095, INDIA	B37013729
4	10295390	17/05/2011	339,000,000.00	IDBI BANK LIMITED	SPECIALIZED CORPORATE BRANCH, 5-9-89/1, II FLOOR, CHAPEL ROAD, ABIDS, HYDERABAD, ANDHRA PRADESH - 500001, INDIA	B16268518
5	10266587	15/05/2012 *	124,000,000.00	CENTRAL BANK OF INDIA	CORPORATE FINANCE BRANCH, BANK STREET, HYDERABAD, ANDHRA PRADESH - 500095, INDIA	B41964347
6	10224511	15/05/2012 *	4,000,000.00	ING VYSYA BANK LIMITED	22,, M G ROAD, BANGALORE, KARNATAKA - 560001, INDIA	B40957565
7	10190729	04/12/2009 *	199,000,000.00	IDBI BANK LIMITED	115, ANNA SALI, SAIDAPET, CHENNAI, TAMIL NADU - 600015, INDIA	A76289792
8	10114637	26/10/2009 *	120,000,000.00	EXPORT-IMPORT BANK OF INDIA	FLOOR 21, CENTER ONE BUILDING, WORLD TRADE CENTER, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	A75248708
9	10068560	26/10/2009 *	100,000,000.00	IDBI BANK LIMITED	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	A75260851
10	10068561	26/10/2009 *	165,000,000.00	IDBI BANK LIMITED	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	A75296996
11	10008941	26/10/2009 *	80,000,000.00	CENTRAL BANK OF INDIA	BANK STREET, KOTI, HYDERABAD, ANDHRA PRADESH - 500095, INDIA	A74987348
12	10008937	26/10/2009 *	116,600,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, SOMAJIGUDA, HYDERABAD, ANDHRA PRADESH - 500082, INDIA	A74447764
13	10007533	26/10/2009 *	135,900,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, RAJBHAVAN ROAD, SOMAJI GUDA, HYDERABAD, ANDHRA PRADESH - 500082, INDIA	A74447277
14	10002058	26/10/2009 *	246,000,000.00	EXPORT-IMPORT BANK OF INDIA	FLOOR 21, CENTER ONE BUILDING, WORLD TRADE CENTER, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	A75294819
15	80022249	26/10/2009 *	150,000,000.00	EXPORT-IMPORT BANK OF INDIA	FLOOR 21, CENTRE ONE BUILDING, WORLD TRADE CENTRE, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	A75294330
16	90113783	08/06/2005 *	181,400,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE, WORLD TRADE CENTRE; CUFFE PARADE, BOMBAY, MAHARASHTRA - 400005, INDIA	-
17	90113782	26/10/2009 *	25,000,000.00	STATE BANK TRAVANCORE	111, SOROJINI DEVI ROAD, SECUNDERABAD, ANDHRA PRADESH - 500003, INDIA	A75274258
18	90113801	15/05/2012 *	1,914,000,000.00	CENTRAL BANK OF INDIA	CORPORATE FINANCE BRANCH, BANK STREET, HYDERABAD, ANDHRA PRADESH - 500095, INDIA	B41964941
19	90113799	27/03/2003 *	208,200,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, EXPRESS HOUSE; KALOOR, COCHIN, KERALA - 682017, INDIA	-
20	90113777	19/03/2007 *	18,630,890.00	EXPORT IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	A16590200
21	80000806	26/10/2009 *	60,000,000.00	IDBI BANK LIMITED	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	A75264093
22	90113770	26/10/2009 *	94,306,800.00	IDBI BANK LIMITED	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	A75257154
23	90113767	21/03/2006 *	8,083,060.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA LIMITED	IDBI TOWER, WTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	-
24	80000805	26/10/2009 *	117,500,000.00	IDBI BANK LIMITED	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	A75263558
25	90113764	21/03/2006 *	27,404,538.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA LIMITED	IDBI TOWER, WTC COMPLEX, CUFFE PARADE, MUMBAI, MA HARASHTRA - 400005, INDIA	-
26	90113760	14/05/2004 *	145,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE FLOOR 21, WORLD TRADE CENTRE; CUFFE PA RDE, MUMBAI, MAHARASHTRA - 400005, INDIA	-
27	90113756	20/05/1992	2,900,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA	IDBI TOWER, CUFFE PARADE; COLABA, BOMBAY, MAHARAS HTRA - 400004, INDIA	-
28	90113755	18/05/1992	15,900,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA	IDBI TOWER, CUFFE PARADE, BOMBAY, MAHARASHTRA - 4 00005, INDIA	-
29	90113753	07/02/1991	11,000,000.00	THE INDUSTRIAL CREDIT & INVESTMENT CORPORATION OF INDIA LTD.	163; BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400005, INDIA	-
30	90113752	09/12/1988	1,730,000.00	A.P. STATE FINANCIAL CORPORATION	CHIAGE ALI LANE, HYDERABAD, ANDHRA PRADESH, INDIA	-
31	90113751	13/08/1987	4,270,000.00	A.P STATE FINANCIAL CORPORATION	LANE, HYDERABAD, ANDHRA PRADESH, INDIA	-

*Date of modification Charges

FIXED ASSETS:

· Freehold Land

· Building

· Plant and Equipment

· Electrical Installations

· Furniture and Fixture

· Vehicles

· 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.62.61
UK Pound	1	Rs.94.39
Euro	1	Rs.67.96

INFORMATION DETAILS

Analysis Done by :	RAS
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	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	2
--RESERVES	1~10	2
--CREDIT LINES	1~10	4
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	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		26

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.