MIRA INFORM REPORT

Report No. :	346948
Report Date :	27.10.2015

IDENTIFICATION DETAILS

Name :	SURYAAMBA SPINNING MILLS LIMITED
Registered Office :	1^st Floor, Surya Towers, 105, Sardar Patel Road, Secunderabad – 500003, Telangana
Tel. No.:	91-40-27813360
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	05.05.2007
Com. Reg. No.:	36-053831
Capital Investment / Paid-up Capital :	Rs.106.619 Million
CIN No.: [Company Identification No.]	L18100TG2007PLC053831
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 :	Manufacturers of yarn and fabric.
No. of Employees :	1129 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 830000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company incorporated in the year 2007. It is a manufacturers of yarn and fabric. The rating takes into consideration adequate networth base and comfortable debt level of the company in FY15. However, the company has reported decrease in its sales turnover along with net profit in the year under consideration. Overall financial condition of the company is improving. Trade relations are fair. Business is active. Payment terms are reported to be slow but correct. In view of aforesaid, the company can be considered for business dealings with usual trade terms and conditions.

NOTES:

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

ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating= B-
Rating Explanation	Risk prone credit quality and carries very high credit risk.
Date	November, 2014

Rating Agency Name	CRISIL
Rating	Short term rating= A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	November, 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 31-03-2015.

INFORMATION DENIED

Management Non Co-operative (91-712-2591072)

LOCATIONS

Registered Office :	1^st Floor, Surya Towers, 105, Sardar Patel Road, Secunderabad – 500003, Telangana
Tel. No.:	91-40-27813360
Fax No.:	Not Available
E-Mail :	mayank@suryaamba.com mail@suryaamba.com
Website :	www.suryaamba.com
Head Office :	A-101, Kanha Apartment, 128 Chhaoni, Katol Road, Nagpur – 440013 Maharashtra, India
Tel. No.:	91-712-2591072 / 2591406
Fax No.:	91-712-2591410
Factory :	Mouza - Nayakund, Near Ramtek, Nagpur District, Maharashtra, India
Mills :	Survey No. 300, Nayakund Parseoni Road, District Nagpur – 441105, Maharashtra, India
Tel. No.:	91-7114-204711 91-7102-202088

DIRECTORS

AS ON 31.03.2015

Name :	Mr. Virender Kumar Agarwal
Designation :	Managing Director
Address :	H. No. 3-6-18/1, S. J. Lane, Himayath Nagar, Hyderabad - 500029, Andhra Pradesh, India
Date of Appointment :	05.05.2007
DIN No.:	00013314
Name :	Smt. Seema Rani Agarwal
Designation :	Joint Managing Director
Address :	A-101, Kanha Apartments, 128-Chhaoni, Katol Road, Nagpur - 440013, Maharashtra, India
Date of Appointment :	01.01.2009
DIN No.:	01430206
Name :	Mr. Mayank Agarwal
Designation :	Executive Director
Address :	A-3, Anmol Apartments, Mecosabagh, Kadbi Chowk, Nagpur - 440014, Maharashtra, India
Date of Appointment :	01.08.2009
DIN No.:	02749089
Name :	Mr. Pundlik Sampatrao Thakare
Designation :	Chairman and Independent Director
Address :	Kamal Prabha Apartment, Dhantoli, Nagpur - 440012, Maharashtra, India
Date of Appointment :	26.02.2008
DIN No.:	02066290
Name :	Mr. Amit Goela
Designation :	Independent Director
Address :	Oxford View, (Flat No. - D 505), 32/36, Diamond Harbour Road, Kolkata - 700008, West Bengal, India
Date of Appointment :	18.07.2011
DIN No.:	01754804
Name :	Mr. Manish Kumar Gupta
Designation :	Additional Director
Address :	5-8-555, Abids Road, Hyderabad - 500001, Telangana, India
Date of Appointment :	14.02.2015
DIN No.:	07096129

KEY EXECUTIVES

Name :	Mr. Gajanan N. Chhawsaria
Designation :	Chief Financial Officer
Address :	252, Sunanda Apartment, Laxmi Nagar, Nagpur - 440022, Maharashtra, India
Date of Appointment :	14.08.2014
PAN No.:	ADSPC5511D
Audit Committee :	Mr. Pundlik Sampatrao Thakare - Chairman Mr. Amit Goela - Member Smt. Seema Rani Agarwal - Member
Stakeholders Relationship Committee :	Mr. Pundlik Sampatrao Thakare - Chairman Mr. Amit Goela - Member Smt. Seema Rani Agarwal - Member
Nomination and Remuneration Committee :	Mr. Pundlik Sampatrao Thakare - Chairman Mr. Amit Goela - Member Mr. Manish Kumar Gupta - Member

SHAREHOLDING PATTERN

AS ON 30.09.2015

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2136776	72.88
Sub Total	2136776	72.88
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	2136776	72.88
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	64	0.00
Financial Institutions / Banks	870	0.03
Sub Total	934	0.03
(2) Non-Institutions
Bodies Corporate	27963	0.95
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	560193	19.11
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	195505	6.67
Any Others (Specify)	10573	0.36
Clearing Members	9897	0.34
Others	676	0.02
Sub Total	794234	27.09
Total Public shareholding (B)	795168	27.12
Total (A)+(B)	2931944	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)	2931944	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers of yarn and fabric.
Products :	Yarn Fabric
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	Not Divulged
Purchasing :	Not Divulged

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Company Name :	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 :

Company Name :	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 :

1129 (Approximately)

Bankers :

Banker Name :	State Bank of India
Branch :	Industrial Finance Branch, Somajiguda, Hyderabad, Telangana, India
Person Name (With Designation) :	Not Divulged
Contact Number :	Not Divulged
Name of Account Holder :	Not Divulged
Account Number :	Not Divulged
Account Since (Date/Year of Account Opening) :	Not Divulged
Average Balance Maintained :	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan) :	Not Divulged
Account Operation :	Not Divulged
Remark :	Not Divulged

· Axis Bank Limited, M. G. House, Civil Lines, Nagpur – 440001, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2015 Rs. In Million	31.03.2014 Rs. In Million
LONG TERM BORROWINGS
Term loans
From SBI-IFB, Hyderabad
Rupee term Loan-2
From Aditya Birla Finance Limited	125.689	131.045
Other loans and advances
Vehicle Hire Purchase Loan
From HDFC Bank Limited	2.534	3.240
From BMW India Financial Limited	0.000	0.430
From ICICI Bank Limited	0.000	0.166
SHORT TERM BORROWINGS
Loans repayable on demand from banks
State Bank of India
Cash Credit	112.224	126.851
Axis Bank Limited
Cash Credit	16.125	19.322
Total	256.572	281.054

NOTES:

LONG TERM BORROWINGS

The Loan referred above is secured by mortgage of (present and future) movable and immovable properties of the Company on first charge pari passu basis and guaranteed by two Promotor Directors of the Company in their personal capacities.

SHORT TERM BORROWINGS

All Working Capital loans are secured by hypothecation of stocks of raw materials, yarn, stock-in-process, stores and spares and book debts and by a second mortgage over the (present and future) movable and immovable properties of the Company on pari-passu basis and further guaranteed by two Promotor Directors of the Company in their personal capacities.

Auditors :
Name :	S.Venkatadri and Co., Chartered Accountants
Address :	1408,Babukhan Estate, Basheerbagh, Hyderabad – 500001, Telangana, India
Tel. No.:	91-40-23237463 / 23210182
Fax No.:	91-40-23296341
Collaborators :	Not Divulged
Membership :	Not Divulged
Associates/Subsidiaries :	--

CAPITAL STRUCTURE

AS ON 31.03.2015

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs. 10/- each	Rs.50.000 Million
1500000	Cumulative Redeemable Preference Shares	Rs. 100/- each	Rs.150.000 Million
	Total		Rs.200.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2931944	Equity Shares	Rs. 10/- each	Rs.29.319 Million
773000	8% Cumulative Redeemable Preference Shares	Rs. 100/- each	Rs.77.300 Million
	Total		Rs.106.619 Million

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

Equity Shares	Number of Equity Shares	Number of Preference Shares
Shares outstanding at the beginning of the year	2482000	773000
Shares Issued during the year	449944	--
Shares redeemed / bought back during the year	--	--
Shares outstanding at the end of the year	2931944	773000

The details of shareholders holding more than 5% of shares:

Name of Shareholder	Number of Shares	% holding
Sri Virenderkumar Agarwal	1206191	41.14%
Smt Seemarani Agarwal	642250	21.91%
Sri Mayank Agarwal	270997	9.24%

Details of Cumulative Redeemable Preference Shares

Nature	Amount	Date of Issue	Date of Redemption
8% Cumulative Redeemable Preference Shares of Rs.100/- each	55.000	18.07.2011	17.07.2023
8% Cumulative Redeemable Preference Shares of Rs.100/- each	22.300	20.03.2012	19.03.2024
Total	77.300

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	106.619	102.120	100.820
(b) Reserves & Surplus	185.137	176.067	162.798
(c) Money received against share warrants	0.000	2.829	3.646
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	291.756	281.016	267.264
(3) Non-Current Liabilities
(a) long-term borrowings	171.429	176.595	161.436
(b) Deferred tax liabilities (Net)	37.180	29.202	10.908
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	27.458	24.356	26.739
Total Non-current Liabilities (3)	236.067	230.153	199.083
(4) Current Liabilities
(a) Short term borrowings	128.349	146.173	141.122
(b) Trade payables	0.000	0.000	0.000
(c) Other current liabilities	69.395	58.198	61.116
(d) Short-term provisions	21.834	25.515	30.043
Total Current Liabilities (4)	219.578	229.886	232.281
TOTAL	747.401	741.055	698.628
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	478.733	432.359	439.741
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	26.022	24.811
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	10.538	10.299	8.113
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	489.271	468.680	472.665
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	84.609	79.907	62.822
(c) Trade receivables	97.510	95.958	97.724
(d) Cash and cash equivalents	5.215	5.124	4.522
(e) Short-term loans and advances	28.566	42.915	15.790
(f) Other current assets	42.230	48.471	45.105
Total Current Assets	258.130	272.375	225.963
TOTAL	747.401	741.055	698.628

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2015	31.03.2014	31.03.2013
	SALES
			Income	1465.995	1563.930	1344.602
			Other Income	25.653	19.738	7.296
			TOTAL (A)	1491.648	1583.668	1351.898
Less	EXPENSES
			Cost of Materials Consumed	1009.235	1117.206	941.183
			Changes in Inventories of finished goods, work-in-progress and stock-in-trade	(15.338)	14.766	3.607
			Employee Benefits Expenses	120.842	98.310	85.111
			Other Expenses	267.276	246.428	216.917
			TOTAL (B)	1382.015	1476.710	1246.818
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			109.633	106.958	105.080
Less	FINANCIAL EXPENSES (D)			46.220	45.927	47.384
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			63.413	61.031	57.696
Less	DEPRECIATION/ AMORTISATION (F)			35.721	27.646	28.536
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			27.692	33.385	29.160
Less	TAX (H)			9.586	11.946	8.432
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			18.106	21.439	20.728
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			18.010	6.762	(0.256)
Less	APPROPRIATIONS
		Proposed Dividend on Equity Shares		2.932	2.482	2.352
		Dividend on Equity Shares for Previous Year		0.450	0.000	0.000
		Proposed Dividend on Preference Shares		6.184	6.185	9.324
		Corporate Dividend Tax		1.823	1.474	1.984
		Corporate Dividend Tax [Previous Year]		0.138	0.000	0.000
		Transfer to General Reserve		0.050	0.050	0.050
	BALANCE CARRIED TO THE B/S			24.539	18.010	6.762
	EARNINGS IN FOREIGN CURRENCY			2.755	9.166	0.000
	IMPORTS
		Stores & Spares		0.000	0.000	1.195
	Earnings Per Share (Rs.)			3.64	5.72	4.18

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	16.000	16.000	4.000
Cash generated from operations	NA	NA	NA
Net Cash Inflow from Operating Activity	129.088	43.346	81.480

QUARTERLY RESULTS

Particulars	30.06.2015 (Unaudited)
	1^st Quarter
Net sales	301.450
Total Expenditure	281.260
PBIDT (Excluding Other Income)	20.190
Other income	5.690
Operating Profit	25.880
Interest	11.970
Exceptional Items	NA
PBDT	13.910
Depreciation	8.480
Profit Before Tax	5.430
Tax	NA
Provisions and contingencies	NA
Profit after tax	5.430
Extraordinary Items	NA
Prior Period Expenses	NA
Other Adjustments	NA
Net Profit	5.430

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin PAT / Sales	(%)	1.24	1.37	1.54
Operating Profit Margin (PBDIT/Sales)	(%)	7.48	6.84	7.81
Return on Total Assets (PBT/Total Assets)	(%)	3.71	4.67	4.33
Return on Investment (ROI) (PBT/Networth)		0.09	0.12	0.11
Debt Equity Ratio (Total Debt /Networth)		1.08	1.21	1.15
Current Ratio (Current Asset/Current Liability)		1.18	1.18	0.97

STOCK PRICES

Face Value	Rs.10.00/-
Market Value	Rs.38.95/-

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	100.820	102.120	106.619
Reserves & Surplus	162.798	176.067	185.137
Money received against share warrants	3.646	2.829	0.000
Net worth	267.264	281.016	291.756
long-term borrowings	161.436	176.595	171.429
Short term borrowings	141.122	146.173	128.349
Current Maturities of Long term debt	4.000	16.000	16.000
Total borrowings	306.558	338.768	315.778
Debt/Equity ratio	1.147	1.206	1.082

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	1344.602	1563.930	1465.995
		16.312	(6.262)

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	1344.602	1563.930	1465.995
Profit	20.728	21.439	18.106
	1.54%	1.37%	1.24%

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

OPERATIONS

The Company's Revenue at Rs.1491.648 million (as against Rs.1583.668 million in FY 2013-14), registering decrease of 6% over the previous year. Profit before depreciation, interest and taxes stood at Rs.109.633 million (as against Rs.106.958 million in FY 2013-14. Net profit attributable to the shareholders at Rs.18.106 million as against Rs.21.439 million in FY 2013-14. During the year textile industry has recovered from earlier years' recessionary and performed well on an average.

FUTURE OUTLOOK

The per capita polyester consumption is found to be 2.5 kg compared to the world average of 6.8 kg. Polyester consumption also witnessed a marginal increase of 2% in the overall domestic fiber consumption stats, and was seen eating into the share of share of other man-made fibres. Being dubbed as the poor man's cloth, this trend is expected to continue with the growing population and will exponentially increase with the increase in the GDP growth. The new majoritarian government will play an incrementally crucial role in bringing back consumer confidence in the economy. They expect this increase in consumer confidence to bring about an upsurge in domestic demand.

Though, it might lead to an appreciated rupee which would hurt us in the short- term, they do expect that a stable - growth oriented government, with a stable currency are going to have a positive impact on the industry as a whole. They expect the new government bringing about favorable reforms for the textile sectors. They aim to capitalize on these future reforms by having a strong liquidity position, so they can capitalize on each and every opportunity the market generates by drastically expanding and diversifying their product base as to cater a larger audience. They aim to use retained earnings, preferred stock and debt as their main source of funding for their future growth plans. Last but not the least, the company believes that the competition in the emerging markets will be met by improving their systematic efficiency, which will lead to a better cost rationalization, higher productivity, quality assurance and product differenation.

The economy is in the stage of prosperity and the Company expects good demand for its products in domestic as well as international markets. Major markets for Indian Textile and Clothing (T & C) export are the USA and EU and they have recovered from the recession of the past years. The domestic market is also on the path of healthy growth because of the fact that few manufacturing facilities operating abroad are slowing down due to recession. The home-textiles and garment segments are reflecting sound growth both in the domestic and international markets due to good demand of apparels. There is a substantial scope for further growth in these segments. The Company believes that the competition in the emerging markets will be met by developing production systems based on cost efficiency, high productivity, quality assurance, etc.

MANAGEMENT DISCUSSION AND ANALYSIS

ORGANISATION - PROFILE

The company is one of the well-known producers of Yarn. They are basically into manufacturing of Synthetic blended yarns of Polyester/Viscose, 100% Polyester and Viscose with counts wide ranging from 20s to 45s. Currently the Company has one manufacturing unit with a capacity of 37,584 installed spindles with a production capacity of 38 MTs per day. The unit is located at Mouza-Nayakund, Near Ramtek in the state of Maharashtra which is ISO certified.

INDIAN ECONOMY

The year was a challenging one. In 2014-15, Indian economy grew at 7.3% (GDP at market prices). However, with decline in oil and commodity prices aiding in lower current account deficit and inflation, the Indian economy is expected to grow as per World Bank Report by 7.5 percent in 2015-16, 7.9 percent in the next fiscal and 8 percent in 2017-18. With fiscal deficit at below 4%, and current account deficit at 1.6% of GDP, India's macroeconomic fundamentals are healthy.

Indian Textiles Industry has an overwhelming presence in the economic life of the country. Apart from providing one of the basic necessities of life, the textile industry also plays a pivotal role through its contribution to industrial output, employment generation and export earnings of the country.

India, being 2nd largest textile manufacturer in the world accounts for 63% of world's market share in textiles and garments. With 50 million spindles accounting for 24% world's Spindles, India is one of the world's leading and most cost efficient producers of the spun yarn. India's textiles and clothing industry is one of the mainstays of the national economy. The textiles industry is the most labour intensive industry employing 45 million people. This sector contributes 13% of the country's export earnings. Also, 14% of industrial production and 4% of GDP evolve from textile industry. India is major exporting country as far as textile sector is concerned a not dependent on import.

In furtherance, 'Make in India' is an initiative program of the Government of India to encourage companies to manufacture their products in India was embarked by Prime Minister Sri Narendra Modi on 25 September 2014. Textile sector is one of those 25 sectors wherein high hopes to increase GDP growth and revenue is laid on. At present, the government of India allows 100% foreign direct investment (FDI) under the automatic route in the textile sector, subject to all applicable regulations and laws, to espouse the make in India program for the textile and garment industry. Investment opportunities for foreign c o m p a n i e s a n d entrepreneurs are now made available a cross t h e entire value chain of synthetics, value-added and specialty fabrics, fabric processing set-ups f o r all kinds of natural and synthetic textiles, technical textiles, garments, and retail brands.

India is the fastest growing market and is expected to become the 3rd biggest apparel market in the world by 2025 with a total market size of around USD 500 billion as per the CII report. The domestic market is projected to go up from USD 68 billion in 2013 to USD 315 billion in 2025, and the export market is projected to grow from USD 40 billion to USD 185 billion in 2025. The segments contributing in the growth is likely to be from technical textiles and apparels. India has a potential to double its market share in global trade from 5% to 10% by 2025.

OUTLOOK:

While the cotton production in India in the year 2015-16 is expected to decline by 3 to 5% as farmers shift to alternate crops, the cotton availability in India is expected to remain comfortable and further improve from that in the year 2014-15 with stock to consumption ratio expected at 28 to 33% at the end of the year 2015-16. The improvement will be driven by higher carry forward stock from the year 2014-15 as exports had declined due to lower demand from China and expectation of limited cotton exports in the year 2015-16 as well.

Despite the decline in the production, India will remain the world’s largest cotton producer.

The cotton consumption is expected to increase by 3 to 4% in the year 2015-16 on account of low cotton prices which has resulted in a significant decline in the spread between cotton and polyester stable fibre and also the expected improvement in the global economic growth, which will lead to improved demand for textile products. In the FY 2015-16, crude oil prices are expected to remain stable at $60- 70 a barrel. Also, market demand for polyester is likely to rise by five to seven per cent as per a study. But, exports could play spoilsport this year. With markets like Brazil, Turkey and Egypt under pressure for several reasons demand for polyester yarn and fabric will be under pressure in FY 2015-16.

UNSECURED LOAN:

Particulars	31.03.2015 Rs. In Million	31.03.2014 Rs. In Million
LONG TERM BORROWINGS
Loans and advances from related parties	14.000	0.000
Unsecured Loan from Directors	29.206	41.714
Total	43.206	41.714

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30.06.2015

Rs. In Million

Particulars	Quarter ended 30.06.2015
	Unaudited
Net Sales/ Income from Operations	301.446
Other Operating Income	0.000
Total income from operation	301.446
Expenditure
a) Cost of Materials Consumed	246.632
b) Change in inventories of finished goods, work in progress & stock in trade	(72.634)
c) Employee benefits expense	37.663
d) Depreciation and amortization expense	8.479
e) Other expenses	72.597
Total	289.737
Profit from operations before Other Income, Interest and Exceptional Items (1-2)	11.709
Other Income	5.686
Profit before Interest and Exceptional Items (3+4)	17.395
Interest	11.970
Profit after Interest but before Exceptional Items (5-6)	5.425
Exceptional Items	0.000
Profit (+)/ Loss (-) from Ordinary Activities before tax (7+8)	5.425
Tax expense	0.000
Net Profit (+)/ Loss (-) from Ordinary Activities after tax (9-10)	5.425
Extraordinary Items (Net of tax expense)	0.000
Net Profit (+)/ Loss (-) for the period	5.425
Paid-up equity share capital (Face value of Rs.10/- each)	29.319
Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year	192.044
Earnings per share
Before Extraordinary items (not annualized)
- Basic (Rs.)	1.22
- Diluted (Rs.)	1.22
Public Shareholding
- No. of shares	795.168
- Percentage of shareholding	27.12
Promoters and promoter group shareholding
Pledged/ Encumbered
- No. of shares	204820
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	9.59
- Percentage of shares (as a % of the total share capital of the company)	6.99
Non-encumbered
- No. of shares	1931956
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	90.41
- Percentage of shares (as a % of the total share capital of the company)	65.89
INVESTOR COMPLAINTS
Pending at the beginning of the quarter	Nil
Received during the quarter	4
Disposed during the quarter	2
Remaining unresolved at the end of the quarter	2

NOTES:

1. The above results were reviewed by the audit committee and taken on record by the Board of Directors at their meeting.

2. The Segment reporting as defined in Accounting Standard - 17 is not applicable, as the operations of the Company are related to one Segment i.e. Yarn

3. Previous Accounting period's figures have been grouped / regrouped wherever considered necessary.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10584724	08/05/2015	20,049,439.00	Edelweiss Retail Finance Limited	2a & 2b, Savitri Tower, 3a, Dr. Martin Luther King, Sarani, (Formerly Upper Wood Street), Kolkata, West Bengal - 700017, India	C61124848
2	10556652	05/01/2015	12,688,950.00	Aditya Birla Finance Limited	Indian Rayon Compound,, Veraval, Gujarat - 362266, India	C47550108
3	10453348	12/12/2011	453,700,000.00	State Bank of India	Industrial Finance Branch, Raj Bhavan Road, Somajiguda, Hyderabad, Andhra Pradesh - 500082, India	B70703996
4	10237586	27/02/2013 *	217,500,000.00	State Bank of India	Industrial Finance Branch, Raj Bhavan Road, Somajiguda, Hyderabad, Andhra Pradesh - 500082, India	B70960216
5	10121757	09/04/2015 *	175,300,000.00	State Bank of India	Industrial Finance Branch, Somajiguda, Hyderabad, Telangana - 500081, India	C49985914

*Date of modification Charges

FIXED ASSETS:

· Land

· Factory Buildings

· Non-Factory Buildings

· Workshop Equipment

· Plant and Machinery

· Testing Equipment

· Electrical Installations

· Weighing Machines

· Water Works

· Furniture and Fixtures

· Office equipment

· Vehicles

· Data Processing Equipment

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.64.96
UK Pound	1	Rs.99.55
Euro	1	Rs.71.64

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	KIN
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.