MIRA INFORM REPORT

Report Date :

28.05.2008

IDENTIFICATION DETAILS

Name :	TRIPUR SRI SENTIL COTTON MILLS LIMITED

Registered Office :	S. F. No. 302, Andilalayam, Maglaam Road, Tirupur-641687, Tamilnadu

Country :	India

Financials (as on) :	31.03.2006

Year of Establishment :	13.07.1996

Com. Reg. No.:	18-7516

CIN No.: [Company Identification No.]	U17111TZ1996PLC007516

TAN No.: [Tax Deduction & Collection Account No.]	CMBT04266D

PAN No.: [Permanent Account No.]	AAACT9928K

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Manufacturer and Exporter of Fabrics, Made UPS and Garments

RATING & COMMENTS

MIRA’s Rating :

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

Maximum Credit Limit :	USD 700000

Status :	Satisfactory

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is well established and reputed company meeting its local commitments timeously. Trade relations are fair. Business is active. The company can be considered good for normal business dealings.

INFORMATION PARTED BY

Name :	Mr. Sara Varan
Designation :	Export order Followers
Contact No.:	91-421-3291711
Date :	12.05.2008

LOCATIONS

Registered Office :	S. F. No. 302, Andilalayam, Maglaam Road, Tirupur-641687, Tamilnadu, India
Tel. No.:	91-421-2260140
Fax No.:	91-421-2261525
E-Mail :	senthill@vsnl.com , tsscm@satyam.net.in
Website :	http://www.tssindia.com
Area :	1.5 acre (Owned)

DIRECTORS

Name :	Mr. A. P. Velussami
Designation :	Chairman and Managing Director
Address :	302, Kona Thottam, Andipalayam, Tirupur-641687, Coimbatore, Tamil Nadu, India
Date of Birth/Age :	04.12.1958
Date of Appointment :	03.07.1996
Tel No.:	91-421-2261810/ 3290352
Fax No.:	91-421-2260924
Mobile No.:	91-93630-12094
E-mail:	apv@tscmindia.com

Name :	Mr. V. Muthulakshmi
Designation :	Director
Address :	302, Kona Thottam, Andipalayam, Tirupur-641687, Coimbatore, Tamil Nadu, India
Date of Birth/Age :	06.01.1961
Date of Appointment :	03.07.1996

Name :	Mr. K. Pongiannan
Designation :	Director
Address :	Easwara Moorthy Layout, 1^st Street, Karuvampalayam, Tirupur- 641604, Coimbatore, Tamil Nadu, India
Date of Birth/Age :	02.08.1954
Date of Appointment :	03.07.1996

KEY EXECUTIVES

Name :	Mr. L. C. Ramesharavind
Designation :	Executive Director
Tel No. :	91-421-2261928/ 3291711
Fax No.:	91-421-2261525
Mobile No.:	91-93630-12092/ 98947-63966
Email:	ramesh@tscmindia.com

Name :	Mr. R. Muruganantham
Designation :	Garment Manager
Tel. No.:	91-421-3290353
Fax No.:	91-421-2261926
Mobie No.:	91-93630-12093
E-Mail:	garments@tscmindia.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 01.09.2004

Names of Shareholders		No. of Shares
N. Velusamy		1256
V. Kousalya Devi		1256
K. Pongiannan		1256
V. Muthulakshmi		5749951
P. Lakshmi		1257
R. Nachimuthu		1256
A. P. Velussami		3768
Total		5760000

Equity Share Breakup (Percentage of Total Equity)

As on 27.09.2006

Category

Percentage

Directors or relatives of directors

100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Fabrics, Made UPS and Garments

Exports :
Products :	Fabrics
Countries :	Belgium Canada Chile – South America Denmark Finland France Germany Italy Mauritius Portugal South Korea Spain Sri Lanka Switzerland Taiwan United Kingdom United State of America

Terms :
Selling :	L/C, TT

Purchasing :	L/C, TT

GENERAL INFORMATION

Customers :	Wholesalers Retailers

No. of Employees :	50

Bankers :	UCO Bank,171, Kumaran Road, Tripura Branch, Tamil Nadu, India Dhanalakshmi Bank Limited, Main Branch, 340; P.N. Road, Tirupur-641602, Tamil Nadu, India Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227, D, Nariman Point, Mumbai-400021, Maharashtra, India

Facilities :	Cash Credit Rs. 10.000 Millions


Banking Relations :	Satisfactory

Auditors :
Name :	Altn and Company Chartered Accountant
Address :	No. 2 KRR Lay Out 1^st Street, Managalam Road, Tirupur, Tamil Nadu- 641604, India

CAPITAL STRUCTURE

As on 27.09.2006

Authorised Capital :

No. of Shares	Type	Value	Amount
11000000	Equity Shares	Rs. 10/- each	Rs. 110.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10420000	Equity Shares	Rs. 10/- each	Rs. 104.200 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		104.200	57.600	57.600
2] Share Application Money		0.476	43.101	2.838
3] Reserves & Surplus		77.654	72.657	72.212
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		182.330	173.358	132.650
LOAN FUNDS
1] Secured Loans		417.039	288.903	183.194
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		417.039	288.903	183.194
DEFERRED TAX LIABILITIES		7.680	3.565	2.965

TOTAL		670.049	468.826	318.809

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		207.935	95.346	72.420
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	169.702	163.961	145.669
	Sundry Debtors	293.849	247.423	227.727
	Cash & Bank Balances	1.679	2.645	0.307
	Other Current Assets	17.797	17.905	7.759
	Loans & Advances	55.230	75.679	8.233
Total Current Assets		538.257	507.613	389.695
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	135.056	133.432	140.663
	Provisions	4.087	3.701	2.643
Total Current Liabilities		139.143	137.133	143.306
Net Current Assets		399.114	370.480	246.389

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		607.049	465.826	318.809

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		1218.974	1017.990	993.550
Other Income		29.614	50.566	75.748
Total Income		1248.588	1068.556	1069.298

Profit/(Loss) Before Tax		10.170	[4.555]	6.094
Provision for Taxation		5.173	1.600	1.038
Profit/(Loss) After Tax		4.997	[6.155]	5.056

Expenditures :
	Raw Material Consumed	832.465	798.627	769.791
	Consumption of stores and spare parts	0.000	1.578	1.689
	Increase/(Decrease) in Finished Goods	[5.741]	[18.292]	11.202
	Salaries, Wages, Bonus, etc.	2.726	2.155	1.826
	Payment to Auditors	0.107	5.104	0.099
	Interest	42.833	27.584	19.864
	Insurance Expenses	0.619	0.789	0.444
	Power & Fuel	15.290	13.934	20.924
	Depreciation & Amortization	48.533	9.695	10.771
	Other Expenditure	301.586	231.937	226.594
Total Expenditure		1238.418	1073.111	1063.204

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	0.40	[0.57]	0.47

Net Profit Margin (PBT/Sales)	(%)	0.83	[0.45]	0.61

Return on Total Assets (PBT/Total Assets}	(%)	1.36	[0.76]	1.32

Return on Investment (ROI) (PBT/Networth)		0.06	[0.03]	0.05

Debt Equity Ratio (Total Liability/Networth)		3.05	2.46	2.46

Current Ratio (Current Asset/Current Liability)		3.87	3.70	2.71

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U17111TZ1996PLC007516
Name of the company	TITUPUR SRI SENTHIL COTTON MILLS LIMITED
Address of the registered office or of the principal place of business in India of the company	S. F. No. 302, Andilalayam, Maglaam Road, Tirupur-641687, Tamilnadu, India
Type of charge	Book Debts Movable Property Others
Particular of charge holder	Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227, D, Nariman Point, Mumbai-400021, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Loan Cum Hypothecation Agreement
Date of instrument Creating the charge	28.01.2008
Amount secured by the charge	Rs. 30.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 10.25% p.a. Terms of Repayment Tenure 47 Months Margin Nil Extent and Operation of the charge First and exclusive charge by way of Hypothecation in favour of Kotak Mahindra Bank on current and movable assets of the company.
Short particulars of the property charged	Current and movable assets such as machines and equipments, office equipments, spares, accessories, consumables, vehicles, debtors, advances made for purchasing the vehicles and all book debts and receivables of the borrower more particularly described in part B of Schedule II to the Loan-Cum-Hypothecation Agreement.

Name of the company

TITUPUR SRI SENTHIL COTTON MILLS LIMITED

Presented By

TITUPUR SRI SENTHIL COTTON MILLS LIMITED AND THE SOUNTH INDIAN BANK LIMITED, TIRUPUR

1) Date and description of instrument creating the change

06.05.1997

Packing Credit, FBP and Bank Guarantee Agreement

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 22.000 Millions and break of which are given below:

Sl No.	Limits	Amount in Millions
1	PC	5.000
2	FBP	15.000
3	BG	2.000
	Total	22.000

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

Hypothecation of entire Current assets of the company viz raw materials, bills receivables, book debts and other movables.

4) Gist of the terms and conditions and extent and operation of the charge.

All necessary formalities for advances to the company including notification of charge with ROC to be complied with processing fee, penal interest and inspection charges as per rules.

5) Name and Address and description of the person entitled to the charge.

The South Indian Bank Limited, Main Branch, Binny Compound, Kumaran Road, Tirupur-641601

6) Date and brief description of instrument modifying the charge

04.01.2005

agreement for PC, FBP Term Loan and BG
Packaging Credit Agreement
FBP Agreement
Additional Agreement for Term Loan disbursement in stages.
Letter of Continuity- Joint form for CCOL/CCKL limit
instrument of hypothecation of book debts
Lien form for deposit- second charge
Agreement of indemnify and guarantee
Affidavits for creation of Equitable Mortgage by way of redeposit of title deeds.
Interest , Penal Interest and Service charges agreement

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 overall limits have been enhanced from Rs. 139.850 Millions to Rs. 359.500 Millions by taking over the share of the existing limits of the Dhannalakshmi Bank Limited with the regular increase in the limits based on the requirements as detailed below:

South Indian Bank Limited, Tirupur:

Rs. In Millions

Sl No.	Limit	Existing	Revised
1	PC	51.200	90.000
2	FBP	66.400	150.000
3	BG/LC	6.500	30.000
4	FSL	2.000	39.500
5	CCOL	10.000	40.000
6	BP/ DC	139.850	359.500

The Dhanalakshmi Bank Limited

Rs. In Millions

Sl No.	Limit	Existing	Revised
1	PC	18.800	0.000
2	FBN	23.600	0.000
3	TL	1.625	0.000
4	CP/DBP	1.250	0.000
5	Overdraft	2.500	0.000
6	PC (adhoc)	3.000	0.000
	Total	50.775	0.000

Details of hypothecation and charge : Primary: hypothecation and first charge of entire current assets of the company.

Hypothecation and first charge of machinery acquired under FSL.

Hypothecation and first charge of other entire fixed assets including land and building.

EM and first charge of industrial property in the name of the company and fixed deposit of rs. 0.225 Million the entire charge by way of hypothecation of tangible movable assets mentioned in item no 3 and such assets of the natures described as are of may at any time be in the possession or power of the company’s to secure demand export credit packing credit of Rs. 90.000 Millions demand bills negotiation /purchase of Rs. 150.000 Millions together with interest 13% pa upto 180 days, 13.50% pa beyond 180 days and upto 270 days 14% pa over SIB prime lending rate minimum 25% pa beyond 270 days and 25% upto normal transit period with quarterly interest to the company by the bank from time to time power to the bank to seize and realize.

In view of the above arrangements, the limits so availed from the Dhanalakshmi Bank Limited, Tirupur have been fully satisfied and that the consortium banking becomes a sole banking with south Indian Bank Limited, Tirupur

As per Website:

Subject is an ISO 9001 :2000 organization, has over two decades of experience in manufacturing Woven Fabrics, Made-ups and knitted Garments.

The Company began its operation in 1986 as ‘SENTHILL TEXTILES’, a sole proprietory concern, under the leadership of Mr. A. P. Velussami. With hard work and reliable services, its operations expanded, and the company became a public limited company as Tirupur Sri Cotton Mills Limited.

Located in the outskirts of Tirupur at Andipalayam, 50kms from Coimbatore Airport, the campus covers a vast area of about 40 acres. The company is completely self-relient and houses everything from raw cotton processing to the production of finished products.

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.42.89
UK Pound	1	Rs.84.84
Euro	1	Rs.67.61

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		53

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.	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

MIRA INFORM REPORT

169.702

293.849

1.679

17.797

55.230

538.257

135.056

4.087

139.143

399.114

0.40

0.83

1.36

0.06

3.05

3.87

Unit