MIRA INFORM REPORT

Report No. :	341946
Report Date :	22.09.2015

IDENTIFICATION DETAILS

Name :	SUPREME TEX MART LIMITED
Formerly Known As :	SUPREME WOOLLEN MILLS LIMITED
Registered Office :	424, Industrial Area – A, Ludhiana – 141003, Punjab
Tel. No.:	91-161-2600593 / 2222719 / 6614400
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	25.10.1988
Com. Reg. No.:	16-016933
Capital Investment / Paid-up Capital :	Rs.340.556 Million
CIN No.: [Company Identification No.]	L17117PB1988PLC016933
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	JLDM02038B
PAN No.: [Permanent Account No.]	AAHCS9897D
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Exporter of cotton yarn, synthetic yarn, blended yarn, knitted fabric (both grey and processed) and knitted garments.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

Ca (17)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow and delayed
Litigation :	Clear
Comments :	Supreme Tex Mart Limited was incorporated in the year 1988, it is a textile player offering comprehensive range of yarns, fabrics and garments. During the year under review, company incurred accumulated losses of Rs.417.500 Million which exceeds the networth of the company and hence the networth of the company is fully eroded as on 31^st March, 2015. Rating further constrained on company huge external borrowing which have threaten the liquidity position of the company and susceptibility of the profitability margins to fluctuations in inputs prices, foreign exchange fluctuation risk and cyclical nature of the industry. However, business is active. Payments are reported to be slow and delayed. The company can be considered for business 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 = BBB- (Suspended)
Rating Explanation	Have Moderate degree of safety and carry moderate credit risk
Date	06.02.2015

Rating Agency Name	CARE
Rating	Short Term Bank Facilities = A3 (Suspended)
Rating Explanation	Have Moderate degree of safety and carry higher credit risk
Date	06.02.2015

Note:

Reason for Suspension:

Rating suspended as the company has not furnished the information.

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-CORPORATIVE

CONTACT NO.: 91-161-6614400

LOCATIONS

Registered Office :	424, Industrial Area – A, Ludhiana – 141003, Punjab, India
Tel. No.:	91-161-2600593 / 2222719 / 6614400 / 2510622 / 2510320  / 2510097
Mobile No.:	91-9915700175 (Mr. Robin Vijan) 91-9915710123 (Gaurav Mehra)
Fax No.:	91-161-2609949 / 2510584 / 2609949
E-Mail :	rbhambri@supremetexmart.com info@supremetexmart.com robinvijan@supremetexmart.com
Website :	http://www.supremetexmart.com
Location :	Owned
Factory 1 :	Spinning Unit – 1 and 2 Village Kanganwal. P.O. Jugiana, Ludhiana, Punjab, India
Factory 2 :	Dyeing Unit and Hand Knitting Yarn Unit B – 72, Phase – VIII, Focal Point, Ludhiana, Punjab, India
Factory 3 :	Apparels and Knits Unit Village Paharuwal, P.O. Budhewal, Chandigarh Road, Ludhiana, Punjab, India

DIRECTORS

AS ON 31.03.2015

Name :	Mr. Ajay Gupta
Designation :	Managing Director
Address :	445, Sant Nagar, Hira Singh Road, Ghumhar Mandi, Ludhiana - 141001, Punjab, India
Date of Appointment :	25.10.1988
DIN No.:	00842248
Name :	Mr. Sanjay Krishna Ahuja
Designation :	Director
Address :	H No.85, Sector-8-A, Chandigarh - 160018, India
Date of Appointment :	16.04.2003
DIN No.:	00399501
Name :	Mr. Abhay Pal Gupta
Designation :	Nominee Director
Address :	H. No. 681, Phase - 1, Mohali - 160055, Punjab, India
Date of Appointment :	29.03.2011
DIN No.:	00421536
Name :	Mr. Bhupinder Singh Mann
Designation :	Additional Director
Address :	Village Lutki Majra(Zore Majra), P.O. Dhanetha, Teh. Samana, Patiala - 147001, Punjab, India
Date of Appointment :	12.08.2015
DIN No.:	01211549
Name :	Mr. Gautam Gupta
Designation :	Managing Director
Address :	445, Sant Nagar, Civil Lines, Ludhiana - 141001, Punjab, India
Date of Appointment :	21.01.2010
DIN No.:	02642545
Name :	Mr. Lalit Singla
Designation :	Nominee Director
Address :	H. No. 1041, Sector 12-A, Panchkula - 134109, Haryana, India
Date of Appointment :	03.03.2015
DIN No.:	03591398
Name :	Mr. Kuldip Singh
Designation :	Whole-Time Director
Address :	H. No. 12507, Street No. 8, Vishwakarma- Colony, Near Sangeet Cinema, Ludhiana - 141003, Punjab, India
Date of Appointment :	21.07.2012
DIN No.:	05327381
Name :	Ms. Shivali Gupta
Designation :	Additional Director
Address :	687, Mohalla Prem Nagar, Ward 70, Ludhiana - 141001, Punjab, India
Date of Appointment :	23.06.2015
DIN No.:	07014359
Name :	Ms. Simpal Kumari
Designation :	Additional Director
Address :	# 1/241,First Floor, Block-K, Phase-I, New Palam Vihar, Gurgaon - 122017, Haryana, India
Date of Appointment :	31.03.2015
DIN No.:	07130429

KEY EXECUTIVES

Name :	Mr. Inder Pal Singh
Designation :	Chief Financial Officer
Address :	House No.804, Phase II, Urban Estate, Atam Nagar, Dugri, Ludhiana – 141001, Punjab, India
PAN No.:	ALMPS9654D
Date of Appointment :	30.05.2014
Name :	Mrs. Manpreet Kaur
Designation :	Company Secretary
Address :	1063 D, D Block, Model Town Extension, Ludhiana - 141002, Punjab, India
PAN No.:	AXXPK8758P
Date of Appointment :	01.06.2015

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.06.2015

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	30734409	45.05
Bodies Corporate	7350000	10.77
Financial Institutions / Banks	1645222	2.41
Sub Total	39729631	58.23
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	39729631	58.23
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	4540917	6.66
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	2105589	3.09
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	8302693	12.17
Any Others (Specify)	13551405	19.86
Non Resident Indians	44118	0.06
Hindu Undivided Families	216186	0.32
Clearing Members	17018	0.02
Others	13274083	19.45
Sub Total	28500604	41.77
Total Public shareholding (B)	28500604	41.77
Total (A)+(B)	68230235	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	68230235	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of cotton yarn, synthetic yarn, blended yarn, knitted fabric (both grey and processed) and knitted garments.

Products / Services :

NIC Code of the Product/Service	Name and Description of main Products /Services
1313	Yarns
1410	Garments
1313	Fabrics

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 :

Bank Name	Not Divulged
Branch	Not Divulged
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 (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

• State Bank of India
• Punjab National Bank
• UCO Bank
• Allahabad Bank
• IDBI Bank Limited
• Punjab and Sind Bank
• Central Bank of India
• Union Bank of India
• SBER Bank

Facilities :

Secured Loan	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
Long-term Borrowings
Term Loans Indian Rupee loan from banks	2151.087	1682.773
Other Loans and advances
Indian rupee loan from banks	1.159	0.419
From financial institutions	0.000	0.000
Short-term borrowings
Working Capital Loans From bank
Foreign Currency Loans	0.000	0.401
Indian Rupee Loans	2175.152	1823.767
Total	4327.398	3507.360

Note :

Short-term borrowings

Working Capital Loans from banks are secured by first pari-passu charge over current assets and second pari-passu charge over fixed assets of the company. The loan is also secured by equitable mortgage of residential house of Directors Mr. Ajay Gupta and Mr. Gautam Gupta located at 445 Sant Nagar Ludhiana. Further, the loans have been guaranteed by the personal guarantee of Executive Directors of the company and corporate guarantee of Gold Leaf International Private Limited

Auditors :
Name :	Ashish Agarwal and Company Chartered Accountants
Address :	400/1 Rani Jhansi Road, Civil Lines, Ludhiana – 141001, Punjab, India
Tel. No.:	91-161-2420692 / 2420797
E-Mail :	ashishagarwalca@gmal.com
Memberships :	--
Collaborators :	--
Partnership Firm :	GTTL
Group Companies :	Venus Tex Spin Limited Gautam Terry Tech Limited Goldleaf International Private Limited * Cimero Industrial Enterpris Limited* Ganeshgee Textile Trading Limited

* No transaction has taken place during the year

CAPITAL STRUCTURE

AS ON 31.03.2015

Authorised Capital :

No. of Shares	Type	Value	Amount
90000000	Equity Shares	Rs.5 /- each	Rs.450.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
68230235	Equity Shares	Rs.5 /- each	Rs.341.151 Million
	Less : Calls in arrear		Rs. 0.595 Million
	Total		Rs. 340.556 Million

Note:

Reconciliation of the number of shares outstanding

Particulars	As at March 31 2015
	No.	Amount in Million
At the beginning of the period	68230235	341.151
Issued during the period	--	--
Outstanding at the end of period	68230235	341.151

Terms/rights attached to equity shares

The company has one class of equity shares having a par value of Rs.5 per share. Each holder of equity shares 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 ensuing 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 shareholder.

Details of shareholders holding more than 5% shares in the company

Particulars	As at March 31, 2015
	No.	% Holding in the class
Equity shares of Rs. 5 each fully paid
India Investment Group Pte Limited	7000000	10.26%
Gold Leaf International Private Limited	4000000	5.86%
Sanjay Gupta	11933823	17.49%
Ajay Gupta	9575445	14.03%
Bhavna Gupta	3534665	5.18%
White Stone Yarns Private Limited	2073250	3.04%
Venus Tex Spin Limited	3350000	4.91%
Sunny Land Group Limited	6274083	9.20%

As per of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

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	340.556	340.556	322.279
(b) Reserves & Surplus	(417.525)	1682.348	1469.778
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	206.731
Total Shareholders’ Funds (1) + (2)	(76.969)	2022.904	1998.788
(3) Non-Current Liabilities
(a) long-term borrowings	2272.764	1775.693	2180.120
(b) Deferred tax liabilities (Net)	303.496	303.496	316.031
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	26.235	20.417	7.208
Total Non-current Liabilities (3)	2602.495	2099.606	2503.359
(4) Current Liabilities
(a) Short term borrowings	2176.041	1831.916	1785.559
(b) Trade payables	696.265	1291.850	848.015
(c) Other current liabilities	454.571	631.295	480.259
(d) Short-term provisions	46.620	52.154	52.694
Total Current Liabilities (4)	3373.497	3807.215	3166.527
TOTAL	5899.023	7929.725	7668.674
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2638.699	3139.502	3286.989
(ii) Intangible Assets	2.067	3.086	4.819
(iii) Capital work-in-progress	0.089	3.256	18.675
(iv)Expenditure on power Lines	0.000	0.000	0.049
(v) 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	56.886	80.500	54.102
(e) Other Non-current assets	172.367	63.942	63.355
Total Non-Current Assets	2870.108	3290.286	3427.989
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1601.483	2288.455	2624.964
(c) Trade receivables	740.947	1429.591	837.203
(d) Cash and cash equivalents	126.854	65.104	121.209
(e) Short-term loans and advances	405.832	517.159	423.494
(f) Other current assets	153.799	339.130	233.815
Total Current Assets	3028.915	4639.439	4240.685
TOTAL	5899.023	7929.725	7668.674

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	SALES
	Income	4298.169	8304.242	8935.831
	Other Income	1.042	2.327	6.108
	TOTAL	4299.211	8306.569	8941.939
Less	EXPENSES
	Cost of Materials Consumed	3067.778	5277.007	6025.705
	Purchases of Stock-in-Trade	414.260	623.940	586.701
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	79.766	86.785	87.233
	Employees benefits expense	155.041	241.508	169.356
	Exceptional Items	530.867	0.000	0.000
	Other expenses	1196.801	1306.633	1159.392
	TOTAL	5444.513	7535.873	8028.387
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	(1145.302)	770.696	913.552
Less	FINANCIAL EXPENSES	417.351	501.549	492.134
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	(1562.653)	269.147	421.418
Less/ Add	DEPRECIATION/ AMORTISATION	520.779	266.064	170.364
	PROFIT/ (LOSS) BEFORE TAX	(2083.432)	3.083	251.054
Less	TAX	0.014	(8.446)	90.522
	PROFIT/ (LOSS) AFTER TAX	(2083.446)	11.529	160.532
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	1042.820	2298.731	1847.254
	TOTAL EARNINGS	1042.820	2298.731	1847.254
	IMPORTS
	Raw Materials	0.000	11.093	47.276
	Components and Stores parts	9.579	8.958	10.088
	Capital Goods	40.165	0.326	477.895
	TOTAL IMPORTS	49.744	20.377	535.259
	Earnings / (Loss) Per Share (Rs.)	(30.54)	0.17	2.49

CURRENT MATURITIES OF LONG TERM BORROWINGS DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current maturities of long-term borrowings	216.979	382.233	346.252
Cash Generated from operations	(323.944)	762.158	509.893
Net Cash from operating activities	(327.725)	756.682	451.448

QUARTERLY RESULTS

PARTICULARS	30.06.2015 (Unaudited)
Unaudited	1^st Quarter
Net Sales	868.690
Total Expenditure	721.130
PBIDT (Excl OI)	147.560
Other Income	0.000
Operating Profit	147.560
Interest	60.560
Exceptional Items	0.000
PBDT	87.000
Depreciation	120.680
Profit Before Tax	(33.680)
Tax	0.000
Provisions and contingencies	0.000
Profit After Tax	(33.680)
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	(33.680)

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	(48.47)	0.14	1.80
Operating Profit Margin (PBIDT/Sales)	(%)	(26.65)	9.28	10.22
Return on Total Assets (PBT/Total Assets}	(%)	(35.32)	0.04	3.28
Return on Investment (ROI) (PBT/Networth)		27.07	0.00	0.13
Debt Equity Ratio (Total Debt /Networth)		(60.62)	1.97	2.16
Current Ratio (Current Asset/Current Liability)		0.90	1.22	1.34

STOCK PRICES

Face Value	Rs.5.00/-
Market Value	Rs.7.52/-

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	322.279	340.556	340.556
Reserves & Surplus	1469.778	1682.348	(417.525)
Share Application money pending allotment	206.731	0.000	0.000
Net worth	1998.788	2022.904	(76.969)
long-term borrowings	2180.120	1775.693	2272.764
Short term borrowings	1785.559	1831.916	2176.041
Current maturities of long-term borrowings	346.252	382.233	216.979
Total borrowings	4311.931	3989.842	4665.784
Debt/Equity ratio	2.157	1.972	(60.619)

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	8935.831	8304.242	4298.169
		(7.068)	(48.241)

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	8935.831	8304.242	4298.169
Profit/ (Loss)	160.532	11.529	(2083.446)
	1.80%	0.14%	(48.47%)

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 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

HIGHLIGHTS OF PERFORMANCE

The net sale for the year is Rs.4299.200 Million as compared to Rs. 8306.600 Million of previous year.

The Net Loss for the year ended 31.03.2015 is Rs. 2083.400 Million as compare to Net Profit of Rs. 11.500 Million for the previous year.

UNSECURED LOAN

PARTICULARS	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
Long-term Borrowings
Loans from Gautam Terry	92.501	92.501
From related parties (including inter corporate loans)
Tech Limited in which company's managing directors are members
Loans from Gautam Gupta (Promoter Contribution)	20.517	0.000
Loans from Avnisha Gupta (Relative of managerial Personnel)	7.500	0.000
Short-term borrowings
Working Capital Loans From NBFCs
Indian Rupee Loans	0.889	7.748
Total	121.407	100.249

CONTINGENT LIABILITIES

PARTICULARS	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
(a) Bank guarantee outstanding	--	--
(b) Bills discounted with banks against irrevocable letter of credit	64.253	240.863
(c) The Income Tax Assessments of the company have been completed upto the assessment year (A.Y. 2012-13) for which no demand has been created. However assessment for the A.Y. 2013-14 and A.Y 2014-15 are still pending. (d) The Company has filed an appeal against the order of AETC, ICC before Joint director cum Deputy Excise and Taxation commissioner (Appeal) against imposition of Penalty of Rs.0.278 Million. Based on the decision of Appellate authorities and the interpretations of other relevant provision, the company has been legally advised that the penalty raised is likely to be deleted and accordingly no provision is considered necessary. (e) The Company has filed an appeal against the order of Assistant Commissioner Central Excise division before Commissioner (Appeal) against collection of Service tax of Rs.0.088 Million along with interest and penalty of Rs.0.094 Million. Based on the decision of Appellate authorities and the interpretations of other relevant provision, the company has been legally advised that the penalty raised is likely to be deleted and accordingly no provision is considered necessary.

FINANCE

Cash and Cash equivalent as at 31 March, 2015 is Rs.126.900 Million. The Company continues to focus on judicious management of working capital. Working Capital parameters are kept under strict check through continuous monitoring.

INDUSTRY AND ECONOMIC SCENARIO AND OUTLOOK

Indian economic growth in 2014 rose to 5.2% from 4.7% last year as a result of the improving macro-economic situation. The wholesale and consumer price inflation has fallen to 4.2% and 7.4% from last year's 6.3% and 10.1% on the back of a strong base effect. However, the slow pace of reforms, lack of impetus for infrastructure projects, high interest rates and tightening of fiscal policies adversely impacted the capital goods sector. Industrial production / output was also sluggish. The low economic growth appears to have bottomed out and a gradual increase in economic activity is expected in 2015. With the coming of new Government in the Centre it is expected that the economy should grow in the coming years and the demand for and prices of textile products should improve which will enable the Company to regain steady or better performance.

FINANCIAL / OPERATIONAL PERFORMANCE

Subject is manufacturer and exporter of cotton yarn, synthetic yarn, blended yarn, knitted fabric (both grey and processed) and knitted garments. During the year, the Company's exports (FOB value) were to the tune of Rs.1042.800 Million and accounts for about 24.26% of company's revenues. The company has identified two segment yarn segment and garments segment. The yarn segment comprises production of various types of yarn (from cotton, manmade fibers and blend thereof) and yarn processing activities. Garment segment comprises of knitted garments.

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10571402	31/03/2015	81,800,000.00	PUNJAB AND SIND BANK	OPPOSITE VERKA MILK PLANT, FEROZEPUR ROAD, LUDHIANA - 141001, PUNJAB, INDIA	C54552161
2	10571849	31/03/2015	171,300,000.00	ALLAHABAD BANK	IFB, CHEEMA CHOWK, INDUSTRIAL AREA 'A', LUDHIANA - 141003,  PUNJAB, INDIA	C54891700
3	10557988	30/03/2015	584,600,000.00	IDBI BANK LIMITED	FEROZE GANDHI MARKET, LUDHIANA - 141001, PUNJAB, INDIA	C48296727
4	10564032	30/03/2015	1,602,100,000.00	PUNJAB NATIONAL BANK	LARGE CORPORATE BRANCH, BHAGWATI TOWER, RK ROAD,  CHEEMA CHOWNK, LUDHIANA-141003, PUNJAB, INDIA	C51102689
5	10468318	05/12/2013	50,000,000.00	UNION BANK OF INDIA	MCB, DUGRI ROAD, LUDHIANA - 141001, PUNJAB, INDIA	B92772235
6	10399731	28/12/2012	50,000,000.00	STATE BANK OF INDIA	IFB, GOLDEN TOWER, DHOLEWAL CHOWK, LUDHIANA 141003, PUNJAB, INDIA	B66785213
7	10361808	31/08/2013 *	450,000,000.00	CENTRAL BANK OF INDIA	MCB, R.K. ROAD, , LUDHIANA 141003, PUNJAB, INDIA	B88136783
8	10263447	31/08/2013 *	250,000,000.00	PUNJAB NATIONAL BANK	LCB, R.K. ROAD, BHAGWATI TOWER, R.K. ROAD, LUDHIANA - - 141003, PUNJAB, INDIA	B88049051
9	10198826	31/08/2013 *	135,000,000.00	PUNJAB NATIONAL BANK	LCB, R.K. ROAD, BHAGWATI TOWER, R.K. ROAD, LUDHIANA - 141003, PUNJAB, INDIA	B87904520
10	10196068	31/08/2013 *	125,000,000.00	ALLAHABAD BANK	IIFB, INDUSTRIAL AREA "A", LUDHIANA - 141003, PUNJAB, INDIA	B88145214

* Date of charge modification

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30.06.2015

(RS. IN MILLION)

PARTICULARS	(UN-AUDITED)
	(3 Months Ended)
	30.06.2015
Income from Operations
Net Sales/Income from Operations	849.568
Other Operating Income	19.119
Total Income from operations (net)	868.687
Expenses
Cost of materials consumed	474.390
Purchases of stock-in-trade	23.095
Changes in inventories of finished goods, work-in- progress and stock-in-trade	(39.853)
Employee benefits expense	40.051
Depreciation and amortization expense	120.684
Other Expenses	223.437
Total Expenses	841.804
Profit / loss from Operations before Income, finance costs and Exceptional item (1-2)	26.883
Other Income	0.000
Profit / loss from Ordinary activities before finance costs Exceptional item (3+4)	26.883
Finance Costs	60.558
Profit / loss from Ordinary activities after finance costs before Exceptional item (3+4)	(33.675)
Exceptional Items:	--
Net Profit/ Loss from Ordinary Activities before tax	(33.675)
Less : Tax Expenses	0.000
Net Profit/ Loss from Ordinary Activities after tax	(33.675)
Extraordinary Item (net of tax expense)	--
Net Profit/ Loss for the period (11+12)	(33.675)
Paid- up Equity Share Capital	341.151
Reserves excluding revaluation reserves as per balance sheet of previous accounting year	NA
Earnings per share (of Rs. 10/- each) (not annualised) *
Basic	(0.49)
Diluted	(0.49)
PARTICULARS OF SHAREHOLDING
1. Public shareholding
Number of Shares	28500
Percentage of Shareholding	41.77
2. Promoters and promoter group shareholding
a) Pledged/Encumbered
- Number of Shares	11426
- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	28.76
- Percentage of Shares (as a % of the Total Share Capital of the Company)	16.75
Non - encumbered
- Number of Shares	28303
- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	71.24
- Percentage of Shares (as a % of the total share capital of the company)	41.48

	PARTICULARS	3 Months Ended 30.06.2015
B	Investor complaints (Nos.)
	Pending at the beginning of the quarter	NIL
	Received during the quarter	NIL
	Disposed of during the quarter	NIL
	Remaining unresolved at the end of the quarter	NIL

Note :

1. The above results were reviewed by the Audit Committee and have been taken on record in the Board Meeting held on August 12, 2015.

2. State Bank of India Central Bank of India and Allahabad Bank have classified the advances made to the Company as Non-Performing Assets during the quarter ending June 30, 2015.

3. Previous period/Year figures have been re-grouped/ re-classified wherever necessary to make them comparable.

4. The Company has only one Reportable Segment i.e. "Textiles", hence Segment Reporting required under AS-17 is not applicable. 

5. The company has not provided for interest of Rs. 83.332 Million on the accounts with State bank of India and Central Bank of India declared as "Non-Performing Assets" so the Loss for the quarter ended June 30, 2015 has been under stated to that extent.

FIXED ASSETS

• Freehold Land
• Leasehold Land
• Buildings
• Plant and equipment
• Furniture fixtures
• Vehicles
• Office equipment
• Computer 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 records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.65.75
UK Pound	1	Rs.102.17
Euro	1	Rs.74.37

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	KAS
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	---
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	---
--CREDIT LINES	1~10	2
--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		17

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.