MIRA INFORM REPORT

Report No. :	346055
Report Date :	26.10.2015

IDENTIFICATION DETAILS

Name :	NAHAR SPINNING MILLS LIMITED
Registered Office :	Nahar Tower, 373, Industrial Area, Phase A, Ludhiana – 141003, Punjab
Tel. No.:	91-161-2600701-05 / 2606977-80/ 2660945/ 2661181/ 2661180
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	16.12.1980
Com. Reg. No.:	16-004341
Capital Investment / Paid-up Capital :	Rs.180.326 Million
CIN No.: [Company Identification No.]	L17115PB1980PLC004341
TAN No.: [Tax Deduction & Collection Account No.]	JLDN00362F / JLDN00361E / JLDN00757B
PAN No.: [Permanent Account No.]	AAACN5710D
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Cotton / Synthetic and Blended Yarns.
No. of Employees :	11151 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Status :	Satisfactory
Payment Behaviour :	Slow
Litigation :	Exist
Comments :	Subject was incorporated in the year 1980 and it operate under two segments yarn and garment. The company manufactures woolen products. Its products include pullovers, cardigans, shirts, coats, baby suites, mufflers, shawls, blankets, knitting wool, cotton/blended knitted hosiery pullovers, t-shirts and baby suites etc. For the financial year ended 2015, revenue of the company has marginally declined by 2.27% and profitability margins reported low at 0.94% during the year under a review. Rating takes into consideration company’s established position in the cotton yarn and knitted garments segment supported by its large scale and integrated operations across the textile value chain and above average liquidity position. Rating strengths is partially offset by company’s working-capital-intensive operations and susceptibility of the operating performance to volatile cotton and cotton yarn prices. Trade relations are reported as fair. Payment terms are reported to be slow. In view of aforesaid, the company can be considered for business dealings at usual trade terms and condition. Note: As per our sources and investigation, RBI defaulter check for the subject company and the company has found defaulter with ICICI BANK LIMITED as on 31.03.2010. Further to the investigation we found data on RBI Defaulter is quite old and updated data is not available from any sources.

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	CRISIL
Rating	Long Term Rating = A
Rating Explanation	Adequate degree of safety and low credit risk.
Date	January 19, 2015

Rating Agency Name	CRISIL
Rating	Short Term rating = A1
Rating Explanation	Very strong degree of safety and carry lowest credit risk.
Date	January 19, 2015

RBI DEFAULTERS’ LIST STATUS

Subject’s name has been found enlisted as a defaulter in the publicly available RBI Defaulters’ list and the details of the same are as under :

Bank	Branch	Quarter	Borrower Name	Director Name	Outstanding Amount (Rs. in Million)
ICICI Bank Limited	LUDHIANA	31.03.2010	NAHAR SPINNING MILLS LIMITED	Dinesh Gogns, S.K. SHARMA, SURESH KUMAR SINGLA	121.055
ICICI Bank Limited	LUDHIANA	30.06.2010	NAHAR SPINNING MILLS LIMITED	O P Anhni, Amarjeet Singh, S.K Sharma Suresh	121.055
ICICI Bank Limited	LUDHIANA	31.03.2010	NAHAR SPINNING MILLS LIMITED	Dinesh Gogns, S.K. SHARMA, SURESH KUMAR SINGLA	1211.000

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 31-03-2015.

INFORMATION DENIED BY

Name :	Mr. Anil Garg
Designation :	Finance Head
Contact No.:	91-161-2600701
Date :	23.10.2015

LOCATIONS

Registered / Corporate Office :	Nahar Tower, 373, Industrial Area, Phase A, Ludhiana – 141003, Punjab, India
Tel. No.:	91-161-2600701-05 / 2606977-80/ 2660945/ 2661181/ 2661180
Fax No.:	91-161-2222942 / 2601956 / 601956
E-Mail :	secnsm@owmnahar.com anilgarg@owmnahar.com
Website :	http://www.owmnahar.com
Factory 1 :	427, Industrial Area–‘A’, Ludhiana, Punjab, India
Factory 2 :	Dhandari Kalan, G.T. Road, Sherpur, Ludhiana - 141010, Punjab, India
Factory 3 :	Village Simrai, Mandideep, District Raisen, Madhya Pradesh, India
Factory 4 :	Village Jalalpur, District S.A.S. Nagar, Punjab, India
Factory 5 :	Village Lalru and Lehli, District S.A.S. Nagar, Punjab , India
Factory 6 :	Rishab Spining Mills, Village Jodhan, District, Ludhiana, Punjab, India
Factory 7 :	Nahar Fibres, Jitwal Kalan Malekotla, District Snagrur, Punjab, India
Branch Office 1 :	414, Raheja Chambers, 213 Nariman Point, Mumbai – 400021, Maharashtra, India
Tel No.:	91-22-22835262 / 22835362
Fax No.:	91-22-22872863
E-Mail :	mumbai@owmnahar.com
Branch Office 2 :	Flat No. 22-B, Sector-18, Gurgaon – 120015, Haryana, India
Tel No.:	91-124-2430532 / 2430533
Fax No.:	91-124-2430536
E-Mail :	delhi@owmnahar.com

DIRECTORS

As on 31.03.2015

Name :

Mr. Dinesh Oswal

Designation :

Managing Director

Address :

514, College Road, Civil Lines, Ludhiana - 141001, Punjab, India

Qualification :

B.A. LL.B

Date of Appointment :

01.01.2012

DIN No.:

00607290

Name :

Mr. Kamal Oswal

Designation :

Director

Address :

514, College Road, Civil Lines, Ludhiana - 141001, Punjab, India

Date of Birth/Age :

51 years

Qualification :

Commerce Graduate

Expertise :

Having business experience of more than 31 years in the Industry.

Date of Appointment :

30.09.1991

DIN No.:

00493213

Name :

Mr. Dinesh Gogna

Designation :

Director

Address :

H.No.30-H, Bhai Randhir Singh Nagar, Ludhiana - 141001, Punjab, India

Date of Appointment :

20.05.1985

DIN No.:

00498670

Name :

Mr. Satish Kumar Sharma

Designation :

Director

Address :

153-E, Kitchlu Nagar, Ludhiana - 141001, Punjab, India

Date of Appointment :

29.09.2007

DIN No.:

00402712

Name :

Dr. Harbhajan Kaur Bal

Designation :

Director

Address :

House No 2322,Phase 11,, Mohali - 160065, Punjab, India

Qualification :

Ph. D

Date of Appointment :

30.09.2014

DIN No.:

00008576

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	L17115PB1988PLC008820	NAHAR POLY FILMS LIMITED	Director	30/09/2014	28/09/1992	-	Active	NO
2	L17115PB1980PLC004341	NAHAR SPINNING MILLS LTD	Director	30/09/2014	25/08/2000	-	Active	NO
3	L15143PB1983PLC018321	NAHAR INDUSTRIAL ENTERPRISES LIMITED	Director	30/09/2014	30/06/2001	-	Active	NO
4	L24116PB1986PLC007030	IOL CHEMICALS AND PHARMACEUTICALS LIMITED	Director	27/03/2002	27/03/2002	21/05/2011	Active	NO
5	L17115PB1979PLC003994	SHREYANS INDUSTRIES LIMITED	Director	29/04/2003	29/04/2003	28/05/2011	Active	NO
6	L17122DL1989PLC035050	SPORTKING INDIA LIMITED	Director	25/04/2006	25/04/2006	-	Active	NO
7	U40300PB1949PLC001522	OSWAL WOOLLEN MILLS LTD	Director	29/09/2014	01/11/2006	-	Active	NO
8	L45202PB2006PLC029968	NAHAR CAPITAL AND FINANCIAL SERVICES LIMITED	Director	30/09/2014	12/01/2007	-	Active	NO

Name :

Prof. Kanwar Sain Sharma

Designation :

Independent Director

Address :

H.No. 20 Sf, H.I.G Flats, Rani Jhansi Road, Civil Lines, Ludhiana - 141001, Punjab, India

Date of Appointment :

30.09.2014

DIN No.:

00454686

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	L17115PB1988PLC008820	NAHAR POLY FILMS LIMITED	Director	30/09/2014	30/06/2001	-	Active	NO
2	L15143PB1983PLC018321	NAHAR INDUSTRIAL ENTERPRISES LIMITED	Director	30/09/2014	30/06/2001	14/02/2015	Active	NO
3	L17115PB1980PLC004341	NAHAR SPINNING MILLS LTD	Director	30/09/2014	30/09/2002	-	Active	NO
4	U40300PB1949PLC001522	OSWAL WOOLLEN MILLS LTD	Director	29/09/2014	01/11/2006	-	Active	NO
5	L45202PB2006PLC029968	NAHAR CAPITAL AND FINANCIAL SERVICES LIMITED	Director	30/09/2014	12/01/2007	-	Active	NO

Name :

Dr. Suresh Kumar Singla

Designation :

Director

Address :

H.No.119, Ward No. 26, Kitchlu Nagar, Ludhiana - 141001, Punjab, India

Date of Birth/Age :

64 years

Qualification :

M.A. (Stats. & Eco.) and Ph. D (Stats.)

Expertise :

Having more than 32 years’ experience in Teaching Business Management and Administration.

Date of Appointment :

30.09.2014

DIN No.:

00403423

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	L17115PB1988PLC008820	NAHAR POLY FILMS LIMITED	Director	30/09/2014	31/07/2002	-	Active	NO
2	U40300PB1949PLC001522	OSWAL WOOLLEN MILLS LTD	Director	29/09/2014	01/11/2006	-	Active	NO
3	L45202PB2006PLC029968	NAHAR CAPITAL AND FINANCIAL SERVICES LIMITED	Director	30/09/2014	30/04/2008	-	Active	NO
4	L17115PB1980PLC004341	NAHAR SPINNING MILLS LTD	Director	30/09/2014	30/06/2008	-	Active	NO
5	L51494PB2008PLC032059	Monte Carlo Fashions Limited	Director	27/06/2014	27/06/2014	-	Active	NO

Name :

Dr. Amrik Singh Sohi

Designation :

Additional Director

Address :

H No.73-B, Rajguru Nagar, Ludhiana - 141012, Punjab, India

Date of Birth/Age :

66 years

Qualification :

M.Sc. Ph.D

Expertise :

Having more than 36 years’ experience in teaching and Entomology Research.

Date of Appointment :

30.09.2014

DIN No.:

03575022

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	L17115PB1988PLC008820	NAHAR POLY FILMS LIMITED	Director	30/09/2014	30/07/2011	-	Active	NO
2	L17115PB1980PLC004341	NAHAR SPINNING MILLS LTD	Director	30/09/2014	10/08/2011	-	Active	NO
3	L15143PB1983PLC018321	NAHAR INDUSTRIAL ENTERPRISES LIMITED	Director	30/09/2014	12/08/2011	-	Active	NO
4	L45202PB2006PLC029968	NAHAR CAPITAL AND FINANCIAL SERVICES LIMITED	Director	30/09/2014	29/10/2012	-	Active	NO

Name :

Dr. Yash Paul Sachdeva

Designation :

Additional Director

Address :

702-Hj, Bhai Randhir Singh Nagar, Ludhiana - 141012, Punjab, India

Date of Birth/Age :

51 years

Qualification :

MBA, Ph.D

Expertise :

Having more than 31 years’ experience in teaching Business Management and Administration.

Date of Appointment :

30.09.2014

DIN No.:

02012337

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	L17115PB1988PLC008820	NAHAR POLY FILMS LIMITED	Director	30/09/2014	31/01/2008	-	Active	NO
2	L15143PB1983PLC018321	NAHAR INDUSTRIAL ENTERPRISES LIMITED	Director	30/09/2014	31/07/2008	-	Active	NO
3	U51311PB2001PLC024753	COTTON COUNTY RETAIL LIMITED	Director	30/09/2014	06/08/2008	-	Active	NO
4	L17111PB1955PLC001884	OSWAL SPINNING AND WEAVING MILLS LTD	Director	26/03/2011	25/02/2010	-	Active	NO
5	L45202PB2006PLC029968	NAHAR CAPITAL AND FINANCIAL SERVICES LIMITED	Director	30/09/2014	30/05/2011	-	Active	NO
6	L17115PB1980PLC004341	NAHAR SPINNING MILLS LTD	Director	30/09/2014	10/08/2011	-	Active	NO
7	L51494PB2008PLC032059	Monte Carlo Fashions Limited	Director	27/06/2014	21/03/2014	-	Active	NO

Name :

Mr. Jawahar Lal Oswal

Designation :

Director

Address :

514, College Road, Civil Lines, Ludhiana - 141001, Punjab, India

Date of Appointment :

30.09.1992

DIN No.:

00463866

KEY EXECUTIVES

Name :	Mr. Anil Garg
Designation :	Chief Finance Officer
Address :	206/1, Model Gram, Ludhiana, 141002, Punjab, India
Date of Appointment :	29.05.2014
PAN No.:	ABWPG3895N
Name :	Mr. Brij Sharma
Designation :	Company Secretary
Address :	10 Sf, Gitanjali Appartments, Block-E, Rishi Nagar, Ludhiana - 141001, Punjab, India
Date of Appointment :	01.11.1993
PAN No.:	AIPPS6932F
Name :	P.K. Vashishth
Designation :	Financial Controller

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2015

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	87591	0.24
Bodies Corporate	23291834	64.58
Sub Total	23379425	64.83
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	23379425	64.83
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	7666	0.02
Financial Institutions / Banks	28229	0.08
Foreign Institutional Investors	600	0.00
Sub Total	36495	0.10
(2) Non-Institutions
Bodies Corporate	1842786	5.11
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	8768197	24.31
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1918542	5.32
Any Others (Specify)	119858	0.33
Non Resident Indians	114626	0.32
Directors & their Relatives & Friends	4522	0.01
Trusts	510	0.00
Overseas Corporate Bodies	200	0.00
Sub Total	12649383	35.07
Total Public shareholding (B)	12685878	35.17
Total (A)+(B)	36065303	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1)	0	0.00
(2)	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	36065303	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cotton / Synthetic and Blended Yarns.

Products :

Item Code No.	Product Description
61.01	Articles of Apparel Knitted or Crocheted
52.05	Cotton yarn
55.09	Yarn of Synthetic Staple Fibre

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

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 :

11151 (Approximately)

Bankers :

· State Bank Of India, Specialised Commercial Branch, Pahwa Hospital Com
Plex, Miller Ganj, Ludhiana - 141003, Punjab, India

· Punjab National Bank, International Banking Branch, 1^st Floor, Industrial Area, Near Manju Cinema, Ludhiana - 141003, Punjab, India

· State Bank of Patiala

· Oriental Bank of Commerce

· IDBI Bank Limited

· Allahabad Bank

Facilities :

Secured Loan	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
Long-term Borrowings
I. From State Bank Of India	256.710	297.050
II. From State Bank Of Patiala	384.218	550.281
III. From Punjab National Bank	23.923	119.617
IV. From Oriental Bank Of Commerce	712.431	1037.123
V. From Canara Bank	0.00	38.977
VI. From IDBI Bank Limited	598.524	720.625
VII. From Allahabad Bank	1486.966	897.026
Short-term borrowings
Loans Repayable on Demand
Working Capital Borrowings From Banks	6230.181	7031.139
Total	6230.181	7031.139
Note : LONG TERM BORROWING : I) The Term loans are secured by first charge on the entire fixed assets of the company on pari-passu basis with consortium member banks. The term loans are personally guaranteed by three Directors of the company. -Term loan of Rs.600.000 Million is repayable in quarterly installments by 31/12/2015. ROI is 11.50% p.a - Term loan of Rs.800.000 Million (reduced from 11.700 Million) is repayable in quarterly installments by 31/03/2020 ROI is 10.45% p.a II) Term Loan of Rs. 850.000 Million is secured by first Pari-passu charge on all the present and future fixed assets of the company along with other term lenders. This loan is also personally guaranteed by three directors of the company. - Term loan of Rs.8500 Lacs is repayable in quarterly installments by 01/04/2018. ROI is 11.25% p.a III) Sanctioned Term Loan of Rs.880.0 Million is secured by first Pari-passu Charge on the units of Mandideep, Lalru (except unit – III Lalru) and Ludhiana and also personally guaranteed by three Directors of the Company. - Term loan of Rs.880.000 Million is repayable in quarterly installments by 31/03/2016. ROI 10.75% p.a IV) Sanctioned Term Loan of Rs.1240.000 Million of erstwhile Nahar Exports Limited is secured by first charge on specific fixed assets i.e. Hypothecation of Plant and Machinery to be Purchased under the project of estimated cost of Rs. 1557.100 Million of the units situated at Jodhan and Jitwal Kalan. Sanctioned Term Loans is personally guaranteed by a Director of the Company. Sanctioned Term Loan of Rs.750.000 Million is secured by first Pari-Passu charge on the Units of Mandideep, Lalru (except unit - III) and Ludhiana. Further term loan of Rs.13000 Lacs is secured by first charge on fixed assets of the company (Except assets exclusively financed by State Bank of India) on pari – passu basis with other term lenders The Term Loans are personally guaranteed by three Directors of the Company. - Term loan of Rs.750.000 Million is repayable in quarterly installments by 30/09/2016. - Term loan of Rs.1240.000 Million is repayable in quarterly installments by 01/01/2017. - Term loan of Rs.1300.000 Million is repayable in quarterly installments by 01/01/2021. ROI is 11.25% p.a V) Secured by first charge on specific fixed assets of the units situated at Jodhan. It is further secured by Pari- Passu second charge on existing fixed assets of erstwhile Nahar Exports Ltd. alongwith other banks. The Term Loan is personally guaranteed by three Directors of the Company. - Term loan of Rs. 700.000 Million is repayable in quarterly installments by 09/09/2015. ROI is 11% p.a IV) Secured by first Pari passu Charge (hypothecation) on all fixed movable assets and Negative Lien on Immovable fixed assets (land & Building) The Term Loan is personally guaranteed by three Directors of the Company. - Term loan of Rs.1100.000 Million repayable in quarterly installments by 01/07/2020. ROI is 11% p.a VII) Secured by first Pari-Passu charge on the entire fixed assets of the Company both present and future. The Term Loan is personally guaranteed by three Directors of the Company. - Term loan of Rs 1970.000 Million is repayable in quarterly installments and last installment due on 30/09/2019. ROI is 11% p.a SHORT TERM BORROWING Secured by ( I ) Hypothecation of entire present and future movable assets of the company such as Stock of Materials, Work in process, Finished Goods, Goods in transit, Stores and Spares, Book Debts etc. ( II ) 2nd Charge (on pari-passu basis) over entire plant and machinery, present or future, of all the units of the company and also personally Guaranteed by Chairman, Managing Director and one Director of the Company.

Auditors :
Name :	Gupta Vigg and Company Chartered Accountants
Address :	101, Kismat Complex, G.T. Road, Miller Ganj, Ludhiana – 141003, Punjab, India
Tel. No.:	91-161-2532297 / 2535156
Fax No.:	91-161-2535156
E-Mail :	lc.gupta@guptavigg.com
Website :	www.guptavigg.com
Memberships :	Not Available
Collaborators :	Not Available
Associates :	· Nahar Capital and Financial Services Limited · Nahar Poly Films Limited · Nahar Industrial Enterprises Limited · Oswal Woollen Mills Limited · Vanaik Spinning Mills Limited · Nahar Spinning Mills (FZE). · Abhilash Growth Fund (Private) Limited · Atam Vallabh Financers Limited · Bermuda Insurance Brokers Private Limited · Kovalam Investment and Trading Company Limited · Monica Growth Fund (Private) Limited · Nagdevi Trading and Investment Company Limited · Nahar Growth Fund (Private) Limited, · Ruchika Growth Fund (Private) Limited · Sankeshwar Holding Company Limited · Vanaik Investors Limited · Vardhman Investment Limited · J.L. Growth Fund Limited · Neha Credit and Investment Private Limited, · Ginar Investment Limited · Crown Star Limited · Monte Carlo Fashions Limited · Cotton County Retail Limited · Nahar Industrial Infrastructure Corporation Limited · Simran and Shanaya Company Limited · Palam Motels Limited · Sidhant and Mannat Company Limited · Hug Foods Private Limited

CAPITAL STRUCTURE

As on 31.03.2015

Authorised Capital :

No. of Shares	Type	Value	Amount
60000000	Equity Shares	Rs.5- each	Rs.300.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
36065303	Equity Shares	Rs.5/- each	Rs.180.327 Million
Add	Share Forfeited Account (Amount originally paid up)		Rs.0.204 Million
			Rs.180.531 Million

a) Terms/rights attached to equity shares

The company has only one class of shares having par value at Rs. 5/-per share. Each holder of equity shares is entitled to one vote per share

b) Reconciliation of number of shares

Particular	31.03.2015
Number of shares at the beginning of the Financial year	36065303
Add: Shares Issued During the year	-
Less: Share buyback during the year	-
Number of shares at the end of the Financial year	36065303

c) Detail of shareholding

Name of the Shareholder	31.03.2015 Number of Shares	% of Holding
Nahar Capital and Financial services Limited	10257384	28.44
Nahar Poly Films Limited	6902244	19.14
Nahar Industrial Enterprises Limited	2356930	6.54

d) Forfeited Shares (amount originally paid up)

Particular	31.03.2013
Amount Paid Up
Rs.2.50 per Share	80298
Rs.5.00 per Share	710

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	180.531	180.531	180.531
(b) Reserves & Surplus	7422.714	7454.387	6043.538
(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)	7603.245	7634.918	6224.069
(3) Non-Current Liabilities
(a) long-term borrowings	3462.772	3660.699	3385.700
(b) Deferred tax liabilities (Net)	431.700	618.500	463.500
(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)	3894.472	4279.199	3849.200
(4) Current Liabilities
(a) Short term borrowings	6230.181	7031.139	7996.810
(b) Trade payables	312.888	538.742	326.673
(c) Other current liabilities	1846.939	1740.686	1612.301
(d) Short-term provisions	138.407	516.194	141.794
Total Current Liabilities (4)	8528.415	9826.761	10077.578
TOTAL	20026.132	21740.878	20150.847
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	8671.603	8997.354	8024.577
(ii) Intangible Assets	0.000	0.121	0.161
(iii) Capital work-in-progress	297.324	614.675	383.193
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	69.559	88.539	88.026
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	294.345	463.906	382.133
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	9332.831	10164.595	8878.090
(2) Current assets
(a) Current investments	20.000	89.749	29.749
(b) Inventories	5692.199	5995.833	6475.398
(c) Trade receivables	3849.559	4118.524	3713.524
(d) Cash and cash equivalents	93.830	80.050	130.309
(e) Short-term loans and advances	1037.713	1292.127	923.777
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	10693.301	11576.283	11272.757
TOTAL	20026.132	21740.878	20150.847

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	SALES
	Revenue from Operations	21496.098	22041.889	19612.762
	Other Income	113.004	69.616	81.294
	TOTAL (A)	21609.102	22111.505	19694.056
Less	EXPENSES
	Cost of Materials Consumed	12744.866	12326.062	10600.087
	Purchases of Stock-in-Trade	46.682	216.297	59.497
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(27.971)	(386.060)	(91.715)
	Employees benefits expense	1761.792	1654.558	1385.965
	Exceptional Items	(3.303)	0.000	0.000
	Other expenses	4838.181	4729.308	4496.573
	TOTAL (B)	19360.247	18540.165	16450.407
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	2248.855	3571.340	3243.649
Less	FINANCIAL EXPENSES (D)	794.841	644.726	1027.606
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	1454.014	2926.614	2216.043
Less/ Add	DEPRECIATION/ AMORTISATION (F)	1305.621	881.574	875.506
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	148.393	2045.040	1340.537
Less	TAX (H)	(55.270)	587.500	556.600
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	203.663	1457.540	783.937
Less	Adjustment of Income Tax of Earlier years	(1.600)	(4.500)	5.300
Add	Earlier year excess proposed dividend and dividend distribution tax (L)	0.000	0.000	0.000
Less	APPROPRIATIONS
	Transfer to General Reserve	150.000	900.000	736.400
	Dividend	36.100	36.100	36.100
	Tax on Distributed Profits	7.300	6.100	6.100
	Total (M)	193.400	942.200	778.600
	Balance Carried to the B/S (J+K+L-M)	8.663	510.840	10.637
	EARNINGS IN FOREIGN CURRENCY
	Export of Goods/Services on F.O.B. Basis	13770.946	14092.057	12772.293
	Discount/Rent/Interest Received/Others	7.468	6.041	6.209
	TOTAL EARNINGS	13778.414	14098.098	12778.502
	IMPORTS
	Raw Materials	147.546	38.629	76.809
	Components and Stores parts	112.294	119.711	131.993
	Capital Goods	130.171	504.840	109.651
	TOTAL IMPORTS	390.011	663.180	318.453
	Earnings / (Loss) Per Share (Rs.)	5.60	40.29	21.59

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	1082.097	898.496	886.281
Cash generated from operations	1698.725	2884.555	2096.681
Net cash flow from operating activity	(450.603)	(797.054)	(752.033)

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	0.95	6.61	4.00
Operating Profit Margin (PBIDT/Sales)	(%)	10.46	16.20	16.54
Return on Total Assets (PBT/Total Assets}	(%)	0.75	9.72	6.81
Return on Investment (ROI) (PBT/Networth)		0.02	0.27	0.22
Debt Equity Ratio (Total Debt /Networth)		1.42	1.52	1.97
Current Ratio (Current Asset/Current Liability)		1.25	1.18	1.12

STOCK PRICES

Face Value	Rs.5.00/-
Market Value	Rs.117.75/-

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	180.531	180.531	180.531
Reserves & Surplus	6043.538	7454.387	7422.714
Net worth	6224.069	7634.918	7603.245
long-term borrowings	3385.700	3660.699	3462.772
Short term borrowings	7996.810	7031.139	6230.181
Current Maturities Of Long-Term Debts	886.281	898.496	1082.097
Total borrowings	12268.791	11590.334	10775.050
Debt/Equity ratio	1.971	1.518	1.417

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	19612.762	22041.889	21496.098
		12.385	(2.476)

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	19612.762	22041.889	21496.098
Profit	783.937	1457.540	203.663
	4.00%	6.61%	0.95%

LOCAL AGENCY FURTHER INFORMATION

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

OPERATIONAL REVIEW AND STATE OF AFFAIR

Company operates in a single segment i.e."TEXTILE" as such disclosure requirements as per Accounting Standard AS 17 issued by the Institute of Chartered Accountants of India, New Delhi, are not applicable.

Company's expansion cum modernization project has been completed during the year. After the said expansion, Company's spindlage capacity stands increased to 5 Lakh(Approx.) spindles and 1080 Rotors. Thus the Company has positioned itself as one of the leading integrated Textile player to reap the benefits of economies of scale.

During the year, the Company performed reasonably well, in spite of a challenging year for the Textile Industry. The Company achieved a total income of Rs. 21609.100 Million as against Rs. 22111.500 Million showing a marginal fall. The company achieved an export turnover of 13932.000 Million which constitutes 64.81% of the revenue of the Company. The Company's excellent export performance has also been recognized by the TEXPROCIL by awarding Silver Trophy for highest export of Yarns (50s and below) for the year 2013-14.

However the Company's financial performance was severely affected because of lack luster global demand, volatility in the exchange rates and very thin margins and the Company could earn a Profit (before tax and depreciation) of Rs.1454.000 Million as against 2926.600 Million in the previous year. The depreciation for the year has also risen to Rs. 1305.600 Million as against Rs. 881.600 c Million in the previous year because of change in the method of depreciation which is on the basis of useful life of the assets as specified under Schedule II of the Act. The said change in depreciation, affected company's profitability during the year. The company earned a Profit before tax of Rs.148.400 Million. After providing for taxation of Rs. 33.500 Million and adjustment of deferred tax of Rs. -88.800 Million, the Company earned a net profit of Rs. 203.700 Million during the year.

MANAGEMENT DISCUSSION AND ANALYSIS

Industry Structure and Developments

Textile Industry has played a key role in the country's progress over the years and the situation is likely to gain momentum in the times ahead. The Industry continues to hold a dominant position in country's economic structure because of its huge contribution towards employment generation, Industrial Output and Export earnings and meets out the basic needs of people at large, popularly pronounced as Roti, 'Kapada' aur Makan. It is also an established fact that in any country which is on the path of growth, from developing to developed countries, growth of Textile industry becomes a priority. Therefore it is expected that looking at the expected growth of Indian economy down the line.Textile industry will certainly look up. There will definitely upward movement in demand for the Textile products. From National economic growth point of view it is noticed that Textile industry provides employment to 45 million people, contributes about 5% to India's GDP, 14% to Index of Industrial Production(IIP). It contributes 11% to the country's total exports basket.(source: www.ibef.org) As per current estimation size of Indian Textile Industry is around $110 billion but the Government of India through its National Textile Policy and National Textile vision document has set the target for Indian Textile and apparel industry to $350 billion by 2025(domestic $200 billion and Export $150 billion). With this ambitious target the industry can change the job scenario and manufacturing landscape thereby fulfilling the Prime Minister vision to put textile segment as part of “MAKE IN INDIA” programme.

To give a further push to the textile industry, the Government too has initiated several measures which includes 100 percent FDI in the Indian Textile Sector under the Automatic Route, Duty Free Entitlement to Garment Exports, Proposed 24/7 customs clearance facility at 13 airports and 14 sea ports, Integrated Skill Development scheme, North East Region Textile Promotion Scheme, Focus Market scheme etc. It is expected that these measures will help the Industry to grow further and increase its global share, which is poor second to China, at present.

In line with the global trends and to remain competitive, the company continues to modernize, upgrade and expand its capacities. The company's expansion cum modernization plan has been completed during the year. After the said expansion Company's spindlage capacity stands increased to 498592 spindles and 1080 rotors. This enhancement/upgradation of capacities is with the idea of VALUE ADDITION and also reach to the OPTIMUM LEVEL OF ECONOMIES OF SCALE.As you are aware this is a must for Textile Industry, which is a very capital intensive industry and growth is expected only when there is a value addition and the optimum level of economies of scale. Thus your company has positioned itself as one of the leading integrated Textile Players to reap the benefits of economies of scale and become globally competitive in terms of cost and quality.

FUTURE OUTLOOK

The last year has been a challenging year for the textile industry. The slowdown in the global demand from US, European Union and other] countries adversely affected the Textile Industry. Likewise changes in China Textile Policy severely affected the country's export to that country.

In spite of the above, they are of the firmed opinion that the future of the Textile Industry is quite promising. They hope that with the the recoveries in economies of U.S.A and European Union will propel the growth of the Textile Industry. Moreover the growth drivers of the yesteryears, such as ever growing retailing sector and increased purchasing power of both urban and rural people, are still present in the economy and will lead to the growth of the Industry. The shifting of orders from China to India, due to various favourable factors will also help the Industry to increase its global share.

The management is quite optimistic that the industry will be able to meet the challenges ahead and will emerge as a winner. They also expect that the Government will continue to support the industry in the form of favourable Textile policies, incentives and other benefits which are of paramount importance for the future growth of the Industry.

FINANCIAL OPERATION AND PERFORMANCE

The Company is operating in one segment only i.e. ‘Textile’. During the year under review, your company has performed well. The company achieved a operating income at Rs. 21496.100 Million out of which Rs. 13932.000 Million is export turnover. The Company earned a profit before tax and depreciation of Rs. 1454.000 Million. After providing for depreciation, income tax (including adjustment of tax of earlier year) and deffered tax, the Company earned a net profit of Rs. 202.100 Million. The detailed performance has already been discussed in the Director's Report under the column 'Operational Review'.

LITIGATION DETAILS:

High Court of Punjab and Haryana Chandigarh
Case Details For Case CM-21823-CII-2010
Diary Number	527650		District	UT-CHANDIGARH
Category	--		Main Case Detail	ITA-625-2010
Party Detail	CIT. LUDHIANA V/S M/S NAHAR SPINNING MILLS LIMITED, LUDHIANA
Advocate Name	VIVEK SETHI		List Type	ORDINARY
Status	PENDING		Next Date
Case Listing Details
No Listing Data Available
Judgment Details For Case: CM- CM-21823-CII-2010 Party Detail: CIT. LUDHIANA V/S M/S NAHAR SPINNING MILLS LIMITED, LUDHIANA
Order Date		Order Type	Bench	Judgement Link
Designed and Developed by National Informatics Centre Contents Published and Managed by Punjab and Haryana High Court, Chandigarh. Disclaimer

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10474146	28/03/2013	1,170,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, GOLDEN TOWER, DHOLEWAL  CHOWK, LUDHIANA, Punjab - 141003, INDIA	B78124385
2	10366137	25/06/2012	2,750,000,000.00	PUNJAB NATIONAL BANK	INTERNATIONAL BANKING BRANCH, LUDHIANA, Punjab - 141003, INDIA	B44003846
3	10326020	07/12/2011	1,970,000,000.00	ALLAHABAD BANK	IF BRANCH, CHEEMA CHOWK, 165 INDUSTRIAL AREA-A,  LUDHIANA, Punjab - 141003, INDIA	B28981504
4	10303135	06/07/2011	850,000,000.00	STATE BANK OF PATIALA	COMMERCIAL BRANCH, MILLER GANJ, LUDHIANA, Punjab - 141003, INDIA	B19107838
5	10238537	13/09/2010	1,240,000,000.00	ORIENTAL BANK OF COMMERCE	OVERSEAS BRANCH, G T ROAD, LUDHIANA, Punjab - 141003, INDIA	A94613452
6	10227032	13/05/2010	1,300,000,000.00	ORIENTAL BANK OF COMMERCE	OVERSEAS BRANCH, JANDU TOWER, G.T. ROAD, MILLER G  ANJ, LUDHIANA, Punjab - 141003, INDIA	A88683578
7	10236971	25/02/2010	1,100,000,000.00	IDBI BANK LIMITED	FEROZE GANDHI MARKET BRANCH, LUDHIANA, Punjab - 141001, INDIA	A88221213
8	10032548	26/12/2006	750,000,000.00	ORIENTAL BANK OF COMMERCE	OVERSEAS BRANCH, G.T. ROAD, LUDHIANA, Punjab - 141003, INDIA	A09195728
9	10015787	11/07/2006	880,000,000.00	Punjab National Bank	International Banking Branch,, Industrial Area,  Ludhiana, Punjab - 141003, INDIA	A02770758
10	80063248	12/01/2006	600,000,000.00	STATE BANK OF INDIA	SCB MILLER GANJ, LUDHIANA, Punjab - 142009, INDIA	-

UNAUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER ENDED JUNE 30, 2015

(Rs. In Million)

		Particulars	3 Months ended 30.06.2015
1		Income from Operations
		Sales/Income from Operations (Gross)	5120.228
		b) Other Operating Income	10.348
	Total Income from Operations (Net)		5130.576
2	Expenses
	a)	Cost of Materials consumed	2799.904
	b)	Purchase of stock-in-trade	6.676
	c)	Changes in inventories of finished goods, work-in-progress and stock-in-trade	(165.756)
	d)	Employee benefit expenses	458.241
	e)	Power and fuel	675.402
	f)	Depreciation and amortization expense	256.077
	g)	Other expenses (Any item exceeding 10% of the total expenses relating to continuing operation to be shown separately)	611.882
	Total Expenses		4642.426
3		Profit /(Loss) from operations before other income, finance costs and exceptional items	488.150
4	Other Income		36.370
5	Profit /(Loss) from ordinary activities before finance costs and exceptional items		524.520
6	Finance Costs		173.189
7	Profit /(Loss) from ordinary activities after finance costs but before exceptional items		351.331
8	Exceptional Items		0.000
9	Profit /(Loss) from ordinary activities before tax		351.331
10	Tax Expense		87.500
11	Net Profit /(Loss) from ordinary activities after tax		263.831
12	Paid up equity share capital (Eq. shares of Rs.10/- each)		180.327
13	Reserve excluding revaluation reserves
14		Earnings per share (before/after extraordinary items) of Rs.10/- each
		Basic & Diluted	7.32
A		PARTICULARS OF SHAREHOLDING
1		Public Shareholding
		- No. of Shares	12685878
		- Percentage of Shareholding	35.17%
2		Promoters and promoter group shareholding
		a) Pledged/Encumbered
		- Number of shares	Nil
		- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group)	Nil
		- Percentage of shares (as a % of the total share capital of the Company)
		b) Non- encumbered
		- Number of shares	23379425
		- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group)	100%
		- Percentage of shares (as a % of the total share capital of the Company)	64.83%

Particulars	3 Months Ended 30.06.2015
Pending at the beginning of the quarter	0
Received during the quarter	0
Disposed of during the quarter	0
Remaining unresolved at the end of the quarter	0

Note :

1. The company is operating in single segment i.e. Textiles, as such Segment Reporting as required under Accounting Standard 17 is not applicable.

2. The previous period/years figures have been recast/regrouped/rearranged wherever necessary to make them comparable.

3. The above results were reviewed by the Audit Committee and were thereafter taken on record by the Board of Directors at their meeting held on 5,th August, 2015.

CONTINGENT LIABILITIES:

a) Bank guarantees outstanding Rs.166.254 Million ( Previous Year. 179.089 Million )

b) The Company has bound itself unto the President of India for Rs.13.800 Million (Previous Year Rs.13.800 Million) under Central Excise Act, 1944 for clearance of goods without payment of excise duty, in respect of export of various types of yarn and for storage of various commodities manufactured within factory premises.

c) Excise/Sales Tax/Income Tax/ Other Government Authorities have raised demands of Rs.40.452 Million (Previous Year Rs.41.436 Million) out of which a sum of Rs.0.720 Million (Previous Year Rs. 1.031 Million) has been deposited against said demand. Further these demands have been contested in appeal and no provision has been made in the financial statement.

d) The electricity demand of Rs. 321.254 Million (Previous year 321.554 Million) was raised by MPMKVV Co. Ltd and was contested by the company before Hon'ble High court of Jabalpur. The company deposited Rs. 56.192 Million under protest and also furnished bank guarantee for Rs.166.254 Million. The Hon'ble High court decided the issue but the matter is contested by MPMKVV Co. Limited before Hon'ble Supreme Court which is pending . No provision for any liability has been made in the books.

e) The Madhya Pardesh Government's Ordinance to collect cess on Captive Power generation was declared ultravires by the Hon'ble Supreme court vide order dated 09/12/2003. But the State Government subsequently enacted an Act namely M.P.Upkar (Sanshodhan Tatha Vidhimanyatakaran) Adhiniyam 2004th on 15 April 2004 which deemed to have come in to force from 29.06.2001.After the above act, the M.P.High Court passed an order dated 31/08/2007 to collect the dues of Cess from Captive Power plant users along with interest. According to this order, on the disputed amount,Rs. 17.065 Million (Previous year Rs.15.903 Million) is payable as interest .The above refered order has been challenged by some actual users in Hon'ble Supreme Court and matter being sub-judice,hence liability has not been provided for in the books .’

f) The Company has given the following Guarantees in respect of loans granted by the banks Rs.250.000 Million (previous year Rs.250.000 Million) to Oriental Bank of Commerce and Rs. 150.000 Million (previous year 150.000 Million) to Bank of Maharashtra in respect of financial assistance granted by the said banks to M/s Nahar Poly Films Limited, Ludhiana.

g) Levy of Entry Tax on certain items including yarn by the Punjab Government is subjudice before the Hon'ble Punjab and Haryana High Court .The Punjab Government has deferred the same subject to undertaking by the company that if the same is hold valid by the Hon'ble High Court , then company will deposit the same w.e.f the date of undertaking . The amount of such entry tax is Rs. 15.350 Million (previous year Rs.15.350 Million) .It has no effect on the profitability of the company since the same will be claimed as Input Tax Credit.

FIXED ASSETS

• Free hold Land
• Building
• Plant & Machinery
• Vehicles
• Other Equipments
• Furniture & Fixture

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.88
UK Pound	1	Rs.99.88
Euro	1	Rs.72.06

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	KAR
Report Prepared by :	SUJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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	YES
--EPF	YES/NO	NO
TOTAL		46

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.