MIRA INFORM REPORT

Report No. :	346452
Report Date :	30.10.2015

IDENTIFICATION DETAILS

Name :	J C T LIMITED (w.e.f. 1998)
Formerly Known As :	JAGATJIT COTTON TEXTILE MILLS LIMITED
Registered Office :	Village Chohal, District Hoshiarpur – 146024, Punjab
Tel. No.:	91-1882-258780/85
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	28.10.1946
Com. Reg. No.:	16-004565
Capital Investment / Paid-up Capital :	Rs. 1631.982 Million
IEC No.:	1288034300
CIN No.: [Company Identification No.]	L17117PB1946PLC004565
TAN No.: [Tax Deduction & Collection Account No.]	JLDJ00405G/JLDJ00404F
PAN No.: [Permanent Account No.]	AAACJ6733E
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in manufacturing of textiles and filament yarn.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company incorporated in the year 1946. It has a moderate track record. For the financial year 2015, the company has weak operational performance marked by thin profit margin. Further rating is constrained on account of weak financial risk profile marked leveraged capital structure and strained liquidity position. However, trade relations are reported as fair. Business is active. Payment terms are slow. In view of leveraged balance sheet profile, the company can be considered for business for dealings with some caution.

NOTES :

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

ECGC Country Risk Classification List – March 31, 2015

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

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities = “B”
Rating Explanation	Risk-prone-credit-quality and carries very high credit risk.
Date	04.05.2015

Rating Agency Name	CARE
Rating	Short term bank facilities = “A4”
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	04.05.2015

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2015.

INFORMATION DENIED

MANAGEMENT NON-COOPERATIVE (Tel No.: 91-1882-258780)

LOCATIONS

Registered Office :	Village Chohal, District Hoshiarpur – 146 024, Punjab, India
Tel. No.:	91-1882-258780/85
Fax No.:	91-1882-258045
E-Mail.:	jctdelhi@del2,vsnl.net.in jctsecretarial@jctltd.com
Website	http://www.jcttextiles.com
Corporate Office :	305-309 Rattanjyoti Building,18, Rajendra Place, New Delhi – 110008, India
Tel. No.:	91-11-46290000
Fax No.:	91-11-28512222
Factory 1 :	Textiles Plant G T Road, Phagwara-144401, Punjab, India
Tel. No.:	91-1824-305000-07
Fax No.:	91-1824-261191/266389
Email:	sales@jctltd.com export@jctltd.com
Factory 2:	Filament Plant Dharamshala Road, Chohal, Hoshiarpur – 146024, Punjab, India
Tel. No.:	91-1882-258780 to 258784
Fax No.:	91-1882-258059
Email:	viveksaini@jctltd.com filament@jctltd.com
Branch office	K.K. Chambers, Sir P.T. Marg, P. B. No. 1579, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-22072842
Fax No.:	91-22-22071942

DIRECTORS

As on 31.03.2015

Name :	Mr. Samir Thapar
Designation :	Vice Chairman and Managing Director
Address :	Thapar Farm House, Chhatarpur, New Delhi - 110074, India
Date of Appointment :	02.06.1994
DIN No.:	00062287
Name :	Ms. Priya Thapar
Designation :	Director (HR)
Address :	Thapar Farms, Chattarpur, New Delhi - 110074, India
Date of Appointment :	26.11.2013
DIN No.:	06742680
Name :	Mr. Gordhan Bhojraj Kathuria
Designation :	Director
Address :	101 Jai Jawan 3, Tonk Road, Jaipur - 302018, Rajasthan, India
Date of Appointment :	05.04.1999
DIN No.:	00062088
Name :	Dr. Ajit Kumar Doshi
Designation :	Director
Address :	Dalalon Ki Pole, Sirohi, Sirohi - 307001, Rajasthan, India
Date of Appointment :	26.10.2012
DIN No.:	02298644
Name :	Mr. Chander Mohan Bhanot
Designation :	Director
Address :	144-B 2nd Floor Una Enclave, Mayur Vihar Phase I, Delhi - 110091 India
Date of Appointment :	24.01.2013
DIN No.:	06462056
Name :	Mr. Suresh Kumar Singhala
Designation :	Allahabad Bank Nominee
Address :	B-1 Rangmahal Apartments, Pitam Pura, New Delhi - 110034 India
Date of Appointment :	30.05.2014
DIN No.:	06889743

KEY EXECUTIVES

Name :	Mr Rohit Seru
Designation :	Executive Director
Name :	Mr. M.P.S Narang
Designation :	Chief Financial Officer
Address :	Q-4 Ff Q Block, Rajouri Garden, New Delhi - 110027, India
Date of Appointment :	30.05.2014
PAN No.:	AAVPN9699M
Name :	Ms. Nidhi Goel
Designation :	Company Secretary
Address :	B-5/40 Type 2 Police Line, Pitampura, New Delhi, 110034, India
Date of Appointment :	15.05.2013
PAN No.:	APOPG5035L

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	636429	0.11
Bodies Corporate	222639445	39.99
Sub Total	223275874	40.10
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	223275874	40.10
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	158497	0.03
Financial Institutions / Banks	37813003	6.79
Central Government / State Government(s)	302244	0.05
Insurance Companies	9667654	1.74
Foreign Institutional Investors	77692824	13.95
Sub Total	125634222	22.56
(2) Non-Institutions
Bodies Corporate	22511679	4.04
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	95009912	17.06
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	42194281	7.58
Any Others (Specify)	48166681	8.65
Clearing Members	2796436	0.50
Non Resident Indians	1165653	0.21
Trusts	9500	0.00
Overseas Corporate Bodies	44195092	7.94
Sub Total	207882553	37.34
Total Public shareholding (B)	333516775	59.90
Total (A)+(B)	556792649	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

BUSINESS DETAILS

Line of Business :

Subject is engaged in manufacturing of textiles and filament yarn.

Products :

Item Code No. (ITC Code)	Product Description
5208 and 5210	Cotton and Blended Textiles
5402	Nylon Filament Yarn

Brand Names :

Not Available

Agencies Held :

Not Available

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 :

Information declined by the management

Bankers :

• Allahabad Bank
• Bank of Baroda
• Punjab National Bank
• Punjab and Sind Bank
• State Bank of India
• State Bank of Patiala
• State Bank of Travancore

Facilities :

Secured Loan	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
Long-term Borrowings
Term Loans from:
Banks	1137.397	1631.561
Others	1.231	0.000
Short-term Borrowings
Working Capital Loans from Banks	738.134	468.434
Total	1876.762	2099.995

LONG TERM BORROWINGS

Term Loans from Banks :

Rs.1344.393 Million (Previous period: Rs.1452.208 Million) and interest accrued & due of Rs.13.692 Million (Previous period: Rs.17.526 Million)

Secured by hypothecation of all the moveable properties including plant and machinery and accessories etc. (both present and future) and also equitable mortage, by deposit of title deeds, of the immoveable properties (both present and future) including land, factory buildings, structures, erections, constructions and/or further constructions to be made thereon pertaining to Textile and Filament Units. Further, these loans are additionally secured by the personal

guarantees of Chairman and Managing Director and Sh. M.M.Thapar.

Term loans from Allahabad Bank are additionaly secured by first charge by way of an equitable mortgage over the land admeasuring around 9 acres and structures thereon at Phagwara.

Secured Working Capital Loans have been taken from consortium of scheduled banks and are secured by first charge ranking pari-passu inter-se amongst member banks on all the stocks of raw materials, stock in process, semi-finished and finished goods, stores and spares, bills receivable and books debts and all other moveables current assets both present and future pertaining to Company's Textile and Filament Units. These are also secured by second charge over the fixed assets pertaining to abovesaid Units and by personal guarantees of Chairman and Managing Director and Shri M M Thapar. Working capital loans from Allahabad Bank are additionaly secured by first charge by way of an equitable mortgage over the land admeasuring around 9 acres and structures thereon at Phagwara.

Auditors :
Name :	S.P. Chopra and Company Chartered Accountants
Address :	F-31, Connaught Place, New Delhi - 110 001, Delhi, India
Tel. No.:	91-11-23313495-6-7
Fax No.:	91-11-23713516
E-Mail :	apchopra@airtelmail.com
Memberships :	--
Collaborators :	--
Associates :	JCT Electronics Limited India International Airways Limited Provestment Securities Private Limited KCT Textiles Limited JCT Sports Private Limited

CAPITAL STRUCTURE

As on 31.03.2015

Authorised Capital

No. of Shares	Type	Value	Amount
700000000	Equity Shares	Rs.2.50/- each	Rs.17,50.000 Million
2500000	Redeemable Preference Shares	Rs.100.00/- each	Rs.250.000 Million
	TOTAL		Rs.2000.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
556792649	Equity Shares	Rs.2.50/- each	Rs. 1391.982Million
1000000	Partially Convertible Preference Shares	Rs.100.00/- each	Rs.100.000 Million
1400000	Convertible Preference Shares	Rs.100.00/- each	Rs.140.000 Million
	TOTAL		Rs.1631.982 Million

In an earlier period, the Company allotted 11,59,54,059 Equity Shares of Rs. 2.50 per share at par aggregating to Rs. 289.886 Million to Foreign Currency Convertible Bond (FCCBs) holders in settlement of their dues for FCCBs of US$ 12.93 million on preferential basis. Out of such shares, 4,41,95,092 Equity Shares have a lock in period upto 23.03.2016.

In an earlier period, the Company alloted 4,08,80,000 equity shares of Rs. 2.50 per share at par aggregating to Rs. 1,022 lakhs to secured lending bankers on preferential basis in terms of the Corporate Debt Restructuring (CDR) Schemeapproved on 21.09.2012.

The rights, powers and preferences relating to equity share and the qualifications, limitations and restrictions therof are contained in the Memorandum and Articles of Association of the Company. The Company has only one class of equity shares having a par value of Rs. 2.50 per share. The principle rights are as follows:

Each holder of equity share is entitled to one vote per share.

The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholder.

10,00,000 Optionally Partially Convertible Preference Shares (OPCPS) of Rs 100 per share aggregating to Rs. 100.000 Million are redeemable on 31.12.2016 (date extended from 31.12.2011). 20% of the face value of OPCPS is optionally convertible into Equity Shares during the currency of OPCPS. They are neither entitled to dividend nor carry any voting right.

14,00,000 Optionally Convertible Preference Shares (OCPS) of Rs. 100 each aggregating to Rs. 140.000 Million are redeemable on 26.12.2015 (date extended from 26.12.2010) with the option to convert before that the whole amount into equity shares at rate determined and as permissible under the SEBI guidelines. They are neither entitled to dividend nor carry any voting right.

Reconciliation of Shares Outstanding

Particular	31.03.2015
	No. of Shares	Rs. in Million
Equity Shares
At the beginning of the period Issued, Subscribed and Fully paid up:	556792649	1391.982
At the end of the period	556792649	1391.982
OPCPS At the beginning of the period	1000000	100.000
At the end of the period	1000000	100.000
OCPS At the beginning of the year/period	1400000	140.000
At the end of the year/period	1400000	140.000

Details of Shareholders holding more than 5% shares:

Particular	31.03.2015
	No. of Shares	%held
Equity Shares
Provestment Securities Private Limited	132094334	23.72
KCT Textiles Limited	90545111	16.26
ELM Park Fund Limited, Mauritius	53819225	9.67
Musk Holdings Limited, Mauritius	44195092	7.94
OPCPS Provestment Securities Private Limited	1000000	41.67
OCPS Alport Limited	1400000	58.33

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014 (6 Months)	30.09.2013 (18 Months)
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1631.982	1631.982	1342.096
(b) Reserves & Surplus	(530.053)	(611.401)	(1323.409)
(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)	1101.929	1020.581	18.687
(3) Non-Current Liabilities
(a) long-term borrowings	1208.494	1726.507	1856.253
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	233.272	240.373	242.230
(d) long-term provisions	460.756	383.605	389.054
Total Non-current Liabilities (3)	1902.522	2350.485	2487.537
(4) Current Liabilities
(a) Short term borrowings	746.691	517.676	510.857
(b) Trade payables	1257.720	1263.695	1015.076
(c) Other current liabilities	2073.899	1808.696	2894.851
(d) Short-term provisions	44.535	65.580	58.116
Total Current Liabilities (4)	4122.845	3655.647	4478.900
TOTAL	7127.296	7026.713	6985.124
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3869.881	3970.505	4129.803
(ii) Intangible Assets	3.895	5.544	7.116
(iii) Capital work-in-progress	20.891	44.634	24.668
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	366.792	366.898	279.052
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	53.982	68.992	70.099
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	4315.441	4456.573	4510.738
(2) Current assets
(a) Current investments	0.000	0.000	103.666
(b) Inventories	1478.300	1360.626	1180.142
(c) Trade receivables	807.088	672.318	565.210
(d) Cash and cash equivalents	140.496	65.507	131.860
(e) Short-term loans and advances	257.209	306.501	346.965
(f) Other current assets	128.762	165.188	146.543
Total Current Assets	2811.855	2570.140	2474.386
TOTAL	7127.296	7026.713	6985.124

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014 (6 Months)	30.09.2013 (18 Months)
	SALES
	Income	9816.358	4722.584	12679.741
	Other Income	77.676	48.228	163.589
	TOTAL (A)	9894.034	4770.812	12843.330
Less	EXPENSES
	Cost of Materials Consumed	5548.153	2768.409	7108.979
	Manufacturing Expenses	1800.456	857.842	2619.807
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(78.661)	(130.207)	100.239
	Employees benefits expense	1214.220	552.062	1443.874
	Other expenses	699.548	356.231	941.725
	Exceptional Items	0.000	0.000	162.200
	TOTAL (B)	9183.716	4404.337	12376.824
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	710.318	366.475	466.506
Less	FINANCIAL EXPENSES (D)	336.585	170.621	529.473
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	373.733	195.854	(62.967)
Less/ Add	DEPRECIATION/ AMORTISATION (F)	275.789	165.649	739.160
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	97.944	30.205	(802.127)
Less	TAX (H)	10.152	(3.171)	75.559
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	87.792	33.376	-877.686
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	1033.129	496.064	1601.881
	TOTAL EARNINGS	1033.129	496.064	1601.881
	IMPORTS
	Raw Materials	276.186	80.134	226.677
	Components and Stores parts	76.942	34.727	149.763
	Capital Goods	5.194	0.015	8.926
	TOTAL IMPORTS	358.322	114.876	385.366
	Earnings / (Loss) Per Share (Rs.)	0.16	0.07	(2.32)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014 (6 Months)	30.09.2013 (18 Months)
Current Maturities of Long term debt	1515.488	1206.574	2186.317
Cash Inflow/(Outflow) from Operations	531.563	(776.211)	616.662
Net Cash Inflow/(Outflow) from Operating Activities	528.280	(765.338)	546.677

QUARTERLY RESULTS

Particulars	30.06.2015
UnAudited	1^st Quarter
Net Sales	2174.200
Total Expenditure	2019.900
PBIDT (Excl OI)	154.300
Other Income	12.300
Operating Profit	166.600
Interest	85.300
Exceptional Items	(0.600)
PBDT	80.700
Depreciation	71.900
Profit Before Tax	8.800
Tax	NA
Provisions and contingencies	NA
Profit After Tax	8.800
Extraordinary Items	NA
Prior Period Expenses	NA
Other Adjustments	NA
Net Profit	8.800

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014 (6 Months)	30.09.2013 (18 Months)
Net Profit Margin (PAT / Sales)	(%)	0.89	0.71	(6.92)
Operating Profit Margin (PBIDT/Sales)	(%)	7.24	7.76	3.68
Return on Total Assets (PBT/Total Assets}	(%)	1.45	0.46	(12.01)
Return on Investment (ROI) (PBT/Networth)		0.09	0.03	(42.92)
Debt Equity Ratio (Total Debt /Networth)		3.15	3.38	243.67
Current Ratio (Current Asset/Current Liability)		0.68	0.70	0.55

STOCK PRICES

Face Value	Rs.2.50/-
Market Value	Rs.5.97/-

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013 (18 Months)	31.03.2014 (6 Months)	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	1342.096	1631.982	1631.982
Reserves & Surplus	(1323.409)	(611.401)	(530.053)
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	18.687	1020.581	1101.929
long-term borrowings	1856.253	1726.507	1208.494
Short term borrowings	510.857	517.676	746.691
Current Maturities of Long-Term Debts	2186.317	1206.574	1515.488
Total borrowings	4553.427	3450.757	3470.673
Debt/Equity ratio	243.668	3.381	3.150

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013 (18 Months)	31.03.2014 (6 Months)	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	12679.741	4722.584	9816.358
		(62.755)	107.860

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	12679.741	4722.584	9816.358
Profit	(877.686)	33.376	87.792
	(6.92%)	0.71%	0.89%

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	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three financial years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three financial 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

MANAGEMEN DISCUSSION AND ANALYSIS

OUTLOOK OF THE ECONOMY

As per the latest GDP growth estimates, Indian economy grew by 7.4% in FY 15 compared to 6.9% in FY 14, mostly driven by improved economic fundamentals and revision of GDP methodology calculations. Even inflation showed signs of moderation, a welcome sign - wholesale price and customer price inflation declined to 4.2% and 7.4% respectively, compared to last year's 6.3% and 10.1%. Reduced inflation, falling crude oil prices, stable Rupee, improved purchasing power and consumer spending, higher capital inflows supported by the government policy reforms have already put India on an accelerating growth track and improved business outlook.

The Indian Textile Industry counts among the leading textile industries in the world; its role in the country's economic growth is significant. It accounts for 14% of India's total industrial production and 4% of India's GDP. After witnessing challenges during FY 13 and most part of FY 14 given unfavorable economic conditions, the Indian textile and garment sector has seen reversal of trends in second half of FY 14. With domestic and global economic conditions improving gradually alongwith the focus made by Ministry of Textiles, Indian textile and garment sector is set for growth. It has the potential to double itself in size over the next 6-7 years. Among the major competing nationals, China is losing its competitive advantage in textiles mainly on account of increasing labour costs, appreciating Yuan, rising power costs, focus on domestic market and also due to conscious strategy to move higher value addition industries. Other major exporting countries like Pakistan and Bangladesh are facing geo-political issues. In this scenario all major export markets like USA, Europe and Australia are increasingly looking to shift a large portion of their sourcing pie. India is well placed to fill this gap since its entire major costs like cotton, yarn, power, wages, dyes and chemicals are today globally competitive. Inaddition, the government also has been supportive for the industry and in order to unlock the complete potential of India, more efforts are needed from the industry as well the government.

‘Make in India’ campaign covering 25 sectors, including the textile and garment industry has put in place the logistics and systems to address in a timely manner queries of potential investors. At present, the Government of India (GOI) allows 100% foreign direct investment under the automatic route in the textile sector, subject to all applicable regulations and laws, which effectively backs the make in India program for the textile and garment industry.

The Cabinet Committee on Economic Affairs late in August 2014 gave its approval for continuing the Textile Upgradation Fund Scheme (TUFS) during the 12 plan period with major focus on power looms in accordance with the Budget announcement for the financial year 2013-14.

Business Strategy

The last two years were very challenging for the Textile Industry as a whole due to less demand from the West, this played havoc with the capacity utilization. The low demand put pressure on the prices, which headed southwards. The input costs also remained very high like power and fuel, labour cost and transportation cost due to hike in fuel cost. During the last few months, there have been medium surge in demand from the export with very less support from domestic front. In order to gain advantage of this changed situation the team in JCT has worked on format wherein they have tried to reduce WIP by better coordination and faster money inflow with the available resources on which the company has been working till date. This complete revamping of thought has led to gaining of confidence of the customer and the supplier. Market is expected to improve in the near future as demand expected to surge owing to change in market situations in overseas and domestic business owing to seasonal demands. The emphasis of the management is to run the plants at optimum level and remove bottlenecks in Operations.

The Company entered into a new segment of Home Furnishing last year with the brand JCT Homes. The market response has been quite good and the company expects a substantial volume for the full year during the financial

year 2015-16. It is a capital intensive segment. The company has also entered into a new product line of Technical Textiles and the response from the customers has been encouraging. It requires specific fibers which is

not available in India and needs to be imported. The margins in both, Home Furnishing and Technical Textiles have been quite good.

In Nylon Filament Unit, technology up-gradation would be main thrust going forward to remain competitive in the market, the unit is to upgrade itself in coming years. Since market is growing at considerable pace, other manufacturers are in expansion mode by installing Fully Drawn Yarn (FDY) machines. In order to compete with FDY product, unit is exploring lower capital cost possibility to substitute LOY (Low Oriented Yarn). The unit is exploring possibility of making Nylon Fibre, which is being used as replacement of natural fibre like wool.

OPERATIONS

Textiles:

The performance of textile unit during the year under review has been very encouraging and turnover crossed all time high of Rs 600 Crores. The unit, besides producing yarn for in-house requirement, produced for market also sold around 250 MT / month. With minor debottlenecking, the unit has now been producing technical yarn on conventional machines. The unit upgraded Continuous Dyeing Range - I, and revamp 50 TPH Boiler with minor investments to improve upon the working of processing department and boiler efficiency.

There have been substantial initiatives in Synthetic Fabric (Taffeta) Unit like introduction of Dope Dyed Fabrics, outsourcing grey fabrics to optimize the processing capacity and R&D to use indigenous coating chemicals without compromising on quality.

Nylon Filament Yarn:

The Filament unit has emerged as top Textile Grade Nylon Yarn manufacturer in India despite higher and cheaper imports are coming to India through ASEAN Countries. The unit managed to sell 13601 MT of filament yarn and 199 MT of nylon chips. The raw material, Caprolactum, being petroleum product remained in the range of Rs 145/- per kg to Rs 157/- per kg before falling to Rs 112/- /per kg at the fag end of FY 15. The realization, too, remained more or less stable throughout the year in the range of Rs 260/- to Rs 270/- per kg.

FINANCE

The Company has been meeting its repayment obligation as per the terms of restructuring under CDR mechanism. The scheme has been implemented fully except of the filing of charge under CDR Scheme which could not be filed due to the Order of the Hon'ble High Court of Punjab at Chandigarh. However, all the immoveable and moveable assets including current and book debts are charged with the secured lenders in earlier years. The company is grateful to lenders for their continued support.

UNSECURED LOAN

PARTICULARS	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
Long-term Borrowings
Fixed Deposits from Public Foreign Currency Convertible Bonds (FCCBs) (including premium payable on redemption of Rs. 158.115 Million, Previous period: Rs.151.671 Million)	12.066	37.146
Interest free loan from a related Company	57.800	57.800
Short-term Borrowings
Book overdraft	8.557	49.242
Total	78.423	144.188

Note:

Rs. 81.950 Million (Previous period: Rs.93.476 Million and interest accrued and due of Rs. 0.835 Million

Secured by hypothecation of specific plant & machinery and the personal guarantees of Chairman and Managing Director and Sh. M.M.Thapar.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10598178	13/10/2015	3,231,300,000.00	ALLBANK FINANCE LIMITED	14, INDIA EXCHANGE PLACE,, 1ST FLOOR, KOLKATA, West Bengal - 700001, INDIA	C67901827
2	10590329	18/01/2013	3,522,000,000.00	ALLAHABAD BANK	INDUSTRIAL FINANCE BRANCH, 17, PARLIAMENT STREET  , NEW DELHI, Delhi - 110001, INDIA	C60421054
3	10062854	26/09/2009 *	250,000,000.00	STATE BANK OF PATIALA	G T ROAD, PHAGWARA, Punjab - 144401, INDIA	A70950688
4	10058869	26/09/2009 *	350,000,000.00	PUNJAB NATIONAL BANK	74 JANPATH, NEW DELHI, Delhi - 110001, INDIA	A71494082
5	10020686	16/09/2009 *	730,000,000.00	ALLAHABAD BANK	INDUSTRIAL FINANCE BRANCH, 17, PARLIAMENT STREET,  NEW DELHI, Delhi - 110001, INDIA	A70827712
6	80011655	18/06/2011 *	1,250,851,000.00	ALLHABAD BANK	INDUSTRIAL FINANCE BRANCH, 1ST FLOOR, 17, PARLIAM  ENT STREET, NEW DELHI, Delhi - 110001, INDIA	B16845554
7	80011651	03/10/2005	8,844,000.00	PUNJAB AND SIND BANK	H BLOCK, CONNAUGHT CIRCUS, NEW DELHI, Delhi - 110  001, INDIA	-
8	80011656	16/09/2009 *	58,400,000.00	ALLAHABAD BANK	INDUSTRIAL FINANCE BRANCH, 17, PARLIAMENT STREET,  NEW DELHI, Delhi - 110001, INDIA	A70828165
9	90170035	26/09/2009 *	54,200,000.00	PUNJAB NATIONAL BANK	74, JANPATH, NEW DELHI, Delhi - 110001, INDIA	A71493779
10	80011657	30/10/2009 *	500,000,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, WORLD TRADE TOWER, CUFFE PARADE,  MUMBAI, Maharashtra - 400005, INDIA	A72204373

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER 30TH JUNE, 2015

(Rs. In Million)

Particulars
		30.06.2015
		Unaudited
1	Income from Operations
	(a) Net sates/income from operations (Net of excise duty)	2135.500
	(b) Other Operating Income	38.700
	Total income from operations (net)	2174.200
2	Expenses
	(a) Cost of materials consumed	1270.800
	(b) Purchases of stock-in trade	0.000
	(c) Changes in inventories of finished goods. work-in-progress and stock in trade	(146.500)
	(d) Employee benefits expense	317.200
	(e) Depreciation and Anmortisation Expenses	71.900
	(f) Power and Fuel	347.100
	(g) Other Expenses	231.300
	Total expenses	2091.800
3	Profit/ (Loss) from operations before other Income, finance costs and exceptional Items (1-2)	2.400
4	Other Income	12.300
5	Profit/ (Loss) from operations before other income, finance costs and exceptional items (3+4)	94.700
6	Finance Costs	85.300
7	Profit/ (Loss) from ordinary activities after finance cost but before exceptional items (5-6)	9.400
8	Exceptional items
	(a) NPV Protection against lenders’ sacrifice	0.000
	(b) (Loss)/Profit from discontinued operations	(0.600)
9	Profit/ (Loss) from ordinary activities before tax (7+8)	8.800
10	Tax expenses	0.000
11	Net Profit / (Loss) from ordinary activities after tax (9-10)	8.800
12	Extraordinary item (net of tax expense)	0.000
13	Net Profit / (Loss) for the period (11-12)	8.800
14	Share of profit' (loss) of associates	0.000
15	Minority Interest	0.000
16	Net Profit/ (Loss) after taxes, minority interest and share of profit/(loss) of associates (13+14+15)	8.800
17	Paid up equity share capital (Face Value of Rs 2.50/- each)	1392.000
18	Reserve excluding Revaluation Reserve as per Balance Sheet of previous accounting year	0.000
19.i	Earnings per share (before extraordinary items) of Rs.2.50/- each (not annualised):
	(a) Basic	0.02
	(b) Diluted	0.02
19.ii	Earnings per share (after extraordinary items) of Rs.2.50/- each (not annualised)
	(a) Basic	0.02
	(b) Diluted	0.01
A	PARTICULARS OF SHAREHOLDING
1	Public Shareholding
	- Number of shares	333516775
	- Percentage of shareholding	59.90
2	Promoters and Promoter group shareholding
	a) Pledged / Encumbered
	- Number of shares	222768457
	- Percentage of shares (as a % of the total shareholding of Promoter & Promoter group)	99.77
	- Percentage of shares (as a % of the total Share Capital of the Company)	40.01
	b) Non Encumbered
	- Number of shares	507417
	- Percentage of shares (as a % of the total shareholding of Promoter & Promoter group)	0.23
	- Percentage of shares (as a % of the total Share Capital of the Company)	0.09
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	NIL
	Received during the quarter	7
	Disposed off during the quarter	7
	Remaining unresolved at the end of the quarter	NIL

UNAUDITED SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. In Million)

Particulars		30.06.2015
		Unaudited
1	Segment Revenue
	(a) Textiles	1263.700
	(b) Nylon Filament Yarn	871.800
	(c) Unallocated	--
	Total	2135.500
	Less: Inter-Segment revenue
	Net Sales / Income from Operations	2135.500
2	Segment Results Profit / (Loss) (before tax and interest from each segment)
	(a) Textiles	64.500
	(b) Nylon Filament Yarn	30.300
	(c) Unallocated
	Total
	Less:
	i) Finance costs	94.800
	ii) Other Unallocable expenditure (Net)	85.300
	iii) Un-allocable Income	0.100
	iv) Exceptional items (income)	--
	(a) (Loss)/profit from discontinued operations	(0.600)
	(b) NPV Protection against lenders’ Sacrifice	--
	Total Profit(Loss) before Tax	8.800
3	Capital employed (Segment Assets – Segment Liabilities)
	(a) Textiles	3018.800
	(b) Nylon Filament Yarn	424.400
	(c) Unallocated	(2812.200)
	Total Segment Capital Employed	631.000

Notes:

The above results for the quarter ended 30.06.2015 are after the Limited Review carried out by the Statutory Auditors and have been reviewed by the Audit Committee of the Board and approved by the Board of Directors at its meeting held on 13.08.2015.

In earlier years, operations of Textile Unit at Sriganganagar were discontinued. The Company has recognised Rs. 0.600 Million as loss from discontinued operations during the quarter.

The winding up petition filed by the Trustee, The Bank of Newyork, Mellon, of FCCBs in the High Court of Punjab and Haryana was disposed off on 27th January, 2015 against which the appeal was filed by the Trustee and company with the Senior bench of High Court. In the meanwhile, consent term finalized by the Company with the Trustee and bondholders was allowed by the High court on 05.06.2015, pursuant to which the appeal stood adjourned sine die.

In terms of aforesaid consent terms, amount payable to FCCBs holders is US$ 20.74 million including interest of US$ 4.27 million (Rs.266.298 Million) as at 30.06.2015 to be paid in 10 installment starting from 5th October, 2015 and ending with 5th December, 2017. The said consent terms were subjected to RBI approval, which has since been received on 30th July, 2015, as per which AD and the company are required to comply with certain conditions, which is in the process of being complied Provision for interest shall he made thereafter.

The company had identified land at Sriganganagar, Village Papravat, N. Delhi, Village Satbari, N.Delhi, Surplus land 26 acres at Phagwara around 120 acres at Village Chohal, Hoshiarpur as non core assets and is in the process of disposing off the same. In respect of Phagwara landout of 26 acres An agreement to sell has been entered for sale of 12 acres.

Debit/credit balances in account of few parties are subject to Confirmation/ reconciliation.

Accumulated losses have resulted in erosion of substantial net worth of the Company. However, the financial statements have been prepared on a going basis on the strength of continued support from the promoters, bankers/ other lenders. Further, the Company is in the process of disposing off some of its non-core fixed assets to reduce its debts and improve its liquidity. The management, considering the future plans for operation and support of the promoters, lenders, business associates and workmen, is hopeful of improved profitability leading to further improvement in its financial position.

The Company had given an advance of US$ 890,000 to a related company, CNLT, Malaysia, in December 2006 for supply of yarn. As CNLT could not supply the material within stipulated time, the Company suffered losses and claimed compensation of US$ 360,000 which was paid along with advance in June 2007. On a petition filed by the ex-employees of CNLT (under liquidation) the Hon'ble Court at Kuala Lumpur in its Order dated 13.6.2014 directed the Company to return the entire money. The Company filed an appeal against the said Order with the Courts of Appeal at Malaysia. Our Appeal was heard on 6th May 2015 and the order is awaited.

CONTINGENT LIABILITIES:

(Rs. in million)

PARTICULARS	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
(a) Claims against the Company not acknowledged as debts	84.391	7.687
(b) Guarantees given by the bankers on behalf of the Company	34.586	28.492
(c) Unutilised letter of credit	2.782	0.000
(d) Disputed liabilities not adjusted as expenses in the Accounts for various years being in appeals towards:
- Sales tax	133.407	124.148
- Excise Duty	481.287	420.770
- Stamp Duty	18.772	18.772
- Custom Duty	18.605	18.605
- Entry Tax	202.316	193.414
- Others	24.876	21.704
Total	879.263	797.413

FIXED ASSETS

• Land freehold
• Buildings
• Plant and Machinery
• Data processing equipment
• Electric installation including gadgets
• Tools and implements
• Furniture and fixtures
• Office Equipments
• Vehicles
• Leasehold Improvements
• Scrap

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.65.15
UK Pound	1	Rs.99.36
Euro	1	Rs.71.24

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	TRI
Report Prepared by :	SUD

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	1
--CREDIT LINES	1~10	3
--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		29

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.