MIRA INFORM REPORT

Report Date :

22.11.2007

IDENTIFICATION DETAILS

Name :	PREMIER SPINNING AND WEAVING MILLS PRIVATE LIMITED
Formerly Known As :	PREMIER MILLS PRIVATE LIMITED
Registered Office :	No.1, Nava India Road, Coimbatore – 641028, Tamilnadu
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	19.01.1945
Com. Reg. No.:	181 -146
CIN No.: [Company Identification No.]	U17111TZ1945PTC000146
TAN No.: [Tax Deduction & Collection Account No.]	CMBP03134F
PAN No.: [Permanent Account No.]	AABCP3032D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Cotton Yarn, Cotton Fabric and other Woven Fabrics.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 4018196
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track records. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	No.1, Nava India Road, Coimbatore – 641028, Tamilnadu
Tel. No.:	91-422-4312100
Fax No.:	91-422-4312188
E-Mail :	mail@premill.in
Websites:	www.premill.in
Factory	Belathur Village, Bagalur, Hosur, Coimbatore – 635124, Tamilnadu

DIRECTORS

Name :	Mr. R Jagdish Chandran
Designation :	Chairman and Managing Director
Address :	245, A.T.D. Street, Race Course, Coimbatore – 641018, Tamilnadu, India
Date of Birth/Age :	06.03.1941
Date of Appointment :	14.08.1964
Name :	Mr. D Rajendran
Designation :	Managing Director
Address :	# 233 Tea Estate, Race Course, Coimbatore – 641018, Tamilnadu, India
Date of Birth/Age :	17.12.1948
Date of Appointment :	10.03.2006
Other Directorship :	· Premier Fine Yarns Private Limited U17111TZ1994PTC005511 · Sree Narasimha Textiles Private Limited U17111TZ1976PTC000755 · Prima Products Private Limited U17111TZ1957PTC001972 · Premier Texturisers Private Limited U17115TZ1984PTC001383 · Premier Polyweaves Private Limited U17111TZ1995PTC005901 · Premier Textiles Private Limited U17111TZ1994PTC005512 · Premier Textile Traders Private Limited U17111TZ1981PTC001106 · Bagalur Investments Private Limited U65993TZ1986PTC001690 · Belathur Investments Private Limited U65993TZ1965PTC001691
Name :	Mr. K V Srinivasan
Designation :	Director
Date of Birth/Age :	13.03.1961
Date of Appointment :	07.09.1991
Name :	Ms. Sabitha Chandran
Designation :	Director
Address :	245, A.T.D. Street, Race Course, Coimbatore – 641018, Tamilnadu, India
Date of Birth/Age :	07.04.1942
Date of Appointment :	19.08.1996
Name :	Mr. Sridhar Varadaraj
Designation :	Director
Address :	# 9 VP Naidu Street Avanashi Road, Coimbatore – 641018, Tamilnadu, India
Date of Birth/Age :	24.11.1969
Date of Appointment :	29.08.1997
Name :	Mr. Rohit Rajendran
Designation :	Director
Address :	# 233 Tea Estate, Race Course, Coimbatore – 641018, Tamilnadu, India
Date of Birth/Age :	04.07.1979
Date of Appointment :	01.10.2004
Date of Ceasing :	03.08.2005
Name :	Mr. Thiagarajan
Designation :	Director
Address :	C-18, United Nagar, Veerakeralam Post, Coimbatore, Tamilnadu, India
Date of Birth/Age :	15.09.1954
Date of Appointment :	01.10.1990
Date of Ceasing :	30.09.2004
Name :	Mr. L Sayee Mohan
Designation :	Company Secretary
Address :	A-15, III Floor, Thasami Enclave, 28 Kulatheri Main Road, Uppilipalayam Post, Coimbatore – 641015, Tamilnadu, India
Date of Birth/Age :	03.03.1962
Date of Appointment :	01.10.2004
Date of Ceasing :	27.04.2005
Name :	Mr. A R Vishwanathan
Designation :	Company Secretary
Address :	22/227 “Srivalsam” Thirunellayi Village, Palakkad – 678020, Kerala, India
Date of Birth/Age :	07.04.1968
Date of Appointment :	27.04.2005
Name :	Mr. K Ramasundaram
Designation :	Director
Date of Ceasing :	10.08.2007

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders		No. of Shares
Bagalur Investments Private Limited		499044
Belathur Investments Private Limited		484190
Othakkalmandapam Investment and Finance Private Limited		928177
Primera Investments Private Limited		1273032
Premier Textile Traders Private Limited		90277
R Jagadish Chandran – HUF		1000
Rohit Rajendran		46830
D Rajendran		13470
D Rajendran – HUF		19690
Sabitha Chandran		1000
Sheela Rajendran		29340
Mrs. Sameera GopiKumar		6450
D Rajendran B – HUF		7500
	Total	3400000

As on 31.03.2006

Names of Shareholders	Percentage of Holding
Bodies Corporate	96.32 %
Directors or relatives of directors	3.68 %
Total	100.00 %

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Cotton Yarn, Cotton Fabric and other Woven Fabrics.

GENERAL INFORMATION

Bankers :	· Union Bank Of India Opposite Anakarar Street, Coimbatore – 641001, Tamilnadu, India · Andhra Bank 17 Mill Road, Coimbatore – 641001, Tamilnadu, India · Bank Of Baroda · The Bank Of Nova Scotia · Export Import Bank Of India · Punjab National Bank
Banking Relations :	Good
Auditors :
Name :	M/s Fraser and Ross Chartered Accountants
Address :	41, Race Course, Coimbatore – 641 018, Tamil Nadu
Associates :	· Premier Fine Yarns Private Limited U17111TZ1994PTC005511 · Sree Narasimha Textiles Private Limited U17111TZ1976PTC000755 · Prima Products Private Limited U17111TZ1957PTC001972 · Premier Texturisers Private Limited U17115TZ1984PTC001383 · Premier Polyweaves Private Limited U17111TZ1995PTC005901 · Premier Textiles Private Limited U17111TZ1994PTC005512 · Premier Textile Traders Private Limited U17111TZ1981PTC001106 · Bagalur Investments Private Limited U65993TZ1986PTC001690 · Belathur Investments Private Limited U65993TZ1965PTC001691 · Palavoor Wind Farms Private limited · Coimbatore Holdings Private limited · Udamalpet Holdings Private Limited · Holiday Travels Private limited · Coimbatore Polytex Private limited · Coimbatore Twister Private Limited · Lakshmi Naraisimha Textiles Private limited · Premier Cotton Textiles · Premier Mills Private Limited · Premier Evolvics Private limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
5250000	Equity Shares	Rs. 10/- each	Rs. 52.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3400000	Equity Shares	Rs. 10/- each	Rs. 34.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		34.000	34.000
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		970.549	917.852
4] (Accumulated Losses)		0.000	0.000
NETWORTH		1004.549	951.852
LOAN FUNDS
1] Secured Loans		1927.747	1048.407
2] Unsecured Loans		4.697	4.900
TOTAL BORROWING		1932.444	1053.307
DEFERRED TAX LIABILITIES		186.877	175.322
TOTAL		3123.870	2180..481
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2161.909	1192.053
Capital work-in-progress		0.000	0.000
INVESTMENT		5.712	11.261
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	539.566	526.895
	Sundry Debtors	237.975	265.005
	Cash & Bank Balances	44.437	24.543
	Other Current Assets	47.289	32.557
	Loans & Advances	177.721	209.209
Total Current Assets		1046.988	1058.209
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	68.238	55.556
	Provisions	22.501	25.486
Total Current Liabilities		90.739	81.042
Net Current Assets		956.249	977.167
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		3123.870	2180.481

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006
Sales Turnover		1717.786	1783.788
Other Income		65.278	0.000
Total Income		1783.064	1783.788
Profit/(Loss) Before Tax		65.652	179.630
Provision for Taxation		12.955	62.303
Profit/(Loss) After Tax		52.697	117.327
Export value		711.636	723.989
Imports :
	Raw Materials	77.679	40.716
	Stores & Spares	34.840	28.308
	Capital Goods	141.699	101.300
Total Imports		254.218	170.324
Expenditures :
	Depreciation	184.292	164.921
	Financial charges	34.547	17.387
Total Expenditure		218.839	182.308

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006
PAT / Total Income	(%)	2.95	6.57
Net Profit Margin (PBT/Sales)	(%)	3.82	6.57
Return on Total Assets (PBT/Total Assets}	(%)	2.04	7.98
Return on Investment (ROI) (PBT/Networth)		0.06	0.18
Debt Equity Ratio (Total Liability/Networth)		2.01	1.19
Current Ratio (Current Asset/Current Liability)		11.53	13.05

LOCAL AGENCY FURTHER INFORMATION

Form 8

Bankers Charges Report as per Registry

Name of the company	PREMIER MILLS PRIVATE LIMITED
Presented By	Mr. M R Thiagarajan – Company Secretary
1) Date and description of instrument creating the change	01.04.1999 Agreement for open Cash Credit 01.04.1999 Agreement for Hypothecation of Book Debts
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 106.100 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Stock of raw materials, stock in process, finished goods and stores and spares belonging to the company. All the book debts now owing to the company and also the book debts which may at any time during the continuance of this security become owing to the company in the course of its business.
4) Gist of the terms and conditions and extent and operation of the charge.	The charge operates as security for the due repayment and discharge and discharge by the company of the working capital credit facilities aggregating to Rs. 106.100 Millions sanctioned by Andhra Bank
5) Name and Address and description of the person entitled to the charge.	Andhra Bank 17 Mill Road, Coimbatore – 641001, Tamilnadu, India
6) Date and brief description of instrument modifying the charge	28.04.2004 Composite Agreement dated 28.04.2004
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	The amount secured by the Hypothecation is charge is increased to Rs. 171.200 Millions from Rs. 171.000 Millions. However the amount secured by the mortgage remains at Rs. 171.300 Millions

Corporate identity number (CIN) Foreign company registration number	U17111TZ1945PTC000146
Name of the Company	PREMIER SPINNING AND WEAVING PRIVATE LIMITED
Address	244, A. T. D. Street, Race Course, Coimbatore – 641018, Tamilnadu
This form is for	Creation of Charge
Type of Charge	Book Debts Movable Property (not being pledge)
Particulars of the charge holder	Union Bank of India Oppanakara Street, Coimabatore - 641001,Tamilnadu Email : unioncbe@vsnl.net
Amount secured by the charge	Rs.24.000 millions
Nature of Description of the Instruments Creating or modifying the charge	I) Letter of Hypothecation of bills dated 22.01.2007 II) Packing Credit Agreement Dated 22.01.2007
Brief of the principal terms and conditions	Rate of Interest: 7.5%5 Annum with monthly rests. Terms of Repayment: Credit Limit Sanctioned by the Bank is in the nature of ADHOC export credit Facilities. The Term of credit is for a period of 90 days and Payable on Demand by the company Margin : 10 % Extent and Operation of the Charge : The ADHOC Packing credit and bill Discounting Facilities Aggregating to Rs.24.000 millions sanctioned by Union Bank of India are secured by Paripassu First charge on Book Debts, Cotton, work in Progress, Cotton Yarn (Finished Goods ) of the Company.
Short Particulars of the property charged	Book debts, raw materials (cotton), work in progress, finished goods (cotton Yarn) Situated in the premises / Godown of the company as mentioned in the attached instruments of agreement Dated 22.01.2007

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 records 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.39.41
UK Pound	1	Rs.81.37
Euro	1	Rs.58.56

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		72

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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