MIRA INFORM REPORT

Report Date :

12.11.2008

IDENTIFICATION DETAILS

Name :	LAKSHMI RING TRAVELLERS (COIMBATORE) LIMITED
Registered Office :	34-A, Kamraj Road, Coimbatore – 641 018, Tamilnadu
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	16.10.1974
Com. Reg. No.:	000712
CIN No.: [Company Identification No.]	U17111TZ1974PLC000712
IEC No.:	0488001528
TAN No.: [Tax Deduction & Collection Account No.]	CMBL03029F
PAN No.: [Permanent Account No.]	AAACL3736F
TIN NO.:	33581882106
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Machining Components.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 1965000
Status :	Good
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a part of well known Lakshmi Group having fine track. Fundamental are strong. Trade relations are fair. Payments are usually correct and as per commitments. The company can be considered good for business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr. Varadhraj
Designation :	Accountants
Date :	07.11.2008

LOCATIONS

Registered Office :	34-A, Kamraj Road, Coimbatore – 641 018, Tamilnadu, India
Tel. No.:	91-422-2223791
Mobile No.:	91-9790044225 (Mr. Anand Kumar- Development Officer)
Fax No.:	91-422-2223790
E-Mail :	info@lrtltd.com
Website :	www.lrtltd.com www.indiamart.com/lrtl www.lrtindia.com
Location :	Rented
Factory :`	UNIT I Thorapalli Road, Perandapalli Post, Hosur – 635 137, Tamilnadu, India UNIT II Sulur Railways Feeder Road, Kurumbapalayam, Muthugodenpudur (Post), Coimbatore – 644 406, Tamilnadu, India Tel. No.: 91-422-2360497/ 2360720/ 2360646 Fax No.: 91-422-2360497 Location : Owned UNIT III Pollachi Road, Anaimalai – 642 104, Pollachi TK UNIT IV Sowripalay, Coimbatore – 641 028 UNIT V-A Ooratukuppai, Kinathukadavu, Coimbatore – 641 201 UNIT V-B Anthiyur Udumalpet Tk., Coimbatore District. UNIT V-C Somavarapatti, Udumalpet Tk., Coimbatore District. UNIT V-D Pookulam, Udumalpet Tk., Coimbatore District. UNIT VI S.F. No.452/ 1P, Kaniyur Village, Palladam Tk., Coimbatore District.

DIRECTORS

Name :	Dr. D. Jayavarthanavelu
Designation :	Chairman
Address :	Pranaam No.26, Circuit House Road, Coimbatore – 641 018, Tamilnadu, India
Date of Birth/Age :	02.07.1940
Date of Appointment :	15.09.1982
Name :	Mrs. Uttara Ravi
Designation :	Managing Director
Address :	89/ 190, Venkatasamy Road, R S Puram, Coimbatore – 641 002, Tamilnadu, India
Date of Birth/Age :	15.03.1966
Qualification :	B.B.M.
Experience :	20 Years
Date of Appointment :	06.06.1988
Name :	Mr. K. R. Appaswamy Naidu
Designation :	Director
Name :	Mr. Vellore Padmanaban Mahendra
Designation :	Director
Address :	Lakshmi Vilas, Number – 5, Sankey Road, High Grounds, Bangalore – 560 052, Karnataka, India
Date of Birth/Age :	16.07.1942
Date of Appointment :	09.09.1980
Name :	Mr. Ravi Sam
Designation :	Director
Address :	89/ 190, Venkatasamy Road, R S Puram, Coimbatore – 641 002, Tamilnadu, India
Date of Birth/Age :	31.03.1956
Date of Appointment :	26.05.2004
Name :	Mr. Krishnamoorthy Shankar
Designation :	Director
Address :	Farm House, Lime Light Farms, Ramaiyanpatti, Tachanallur Post, Tirunelveli – 627 358, Tamilnadu, India
Date of Birth/Age :	02.03.1946
Date of Appointment :	19.06.1976
Name :	Mr. Sanjay Jayavarthanavelu
Designation :	Director
Address :	Shell House, No.695, Avanashi Road, Coimbatore – 641 037, Tamilnadu, India
Date of Birth/Age :	15.06.1968
Date of Appointment :	19.06.1992
Name :	Mr. Ragupathi Naidu Venkatrangappan
Designation :	Director
Address :	No.4, G.D. Road, Race Course, Coimbatore – 641 018, Tamilnadu, India
Date of Birth/Age :	30.07.1930
Date of Appointment :	09.09.1983

KEY EXECUTIVES

Name :	Mr. K. Mohanakumaraswamy
Designation :	Chief Executive and Company Secretary
Address :	141, 3^rd Cross Street, Bharathi Colony, Peelamedu, Coimbatore – 641 004, Tamilnadu, India
Date of Birth/Age :	16.04.1956
Qualification :	Graduate in Commerce and Master of Science (Textile) Degree
Experience :	20 Years
Date of Appointment :	30.04.1990
Other Directorships :	· Adwaith Steels Limited · Adwaith Textiles Limited · Jay and Jay Enterprises Limited · Parry Agro Industries Limited · Sigma Link Limited · Titan Paints and Chemicals Limited · Sri Kamadokdi Kamakshi Textiles (Private) Limited · Super Sales Agencies Limited · Adwaith Textiles Exports Limited

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
D Jayavarthanavelu	56000
D Tharyarammal	56000
J Rajyalakshmi	72000
J Raghupathy	2000
A H Tobaccowala	2000
Voltas Limited	120000
K Shankar	10000
V P Mahendra	8000
R Venkartrangappan	2000
Uttara Ravi	478600
Tara Sam	26700
Ravi Sam	100
Minor Arya Sam	24000
Arun Selvaraj	1000
Mahalashmi Engineering Holdings Limited	120000
K Mohannakumaraswamy	1000
Reiter Holdings AG	300000
Titan Paints and Chemicals Limited	27000

Names of Allottees (Sweat Equity Shares)	No. of Shares
Uttara Ravi	115000
K Mohannakumaraswamy	1000
P. Rajendran	500
M. Rajendran	500
S. Ramasamy	500
M. Kathirvel	500
K. Chinnadurai	500
M. Gopalakrishnan	500
J.M. Balaji	500
S. Rangasamy	500
Total	120000

As on 24.07.2008

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	23.00
Bodies corporate	20.00
Directors or relatives of directors	56.00
Other top fifty shareholders	1.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Machining Components.

Products :

Products Description	ITC Code
All types of Ring Travellers and Ring Traveller Application Tools	844833
Machining of Components of Sub-Contract basis	--
Textile Machinery Parts and Accessories	844820
Yarn	520513.01

· Ring Travellers

· LRT Quick Fix

· LRT Quick Fix Spares

· Lakshmi Zinser Gas Cutting Machines

· Lakshmi Zinser Gas Cutting Machines Spares

· Roller Assembly

· Combed Yarn

· Cotton

· Waste Cotton and Yarn

· Electricity

Exports :

Products :

Machining and Fabrication

Countries :

Dubai

Terms :

Selling :

Depends on customers

Purchasing :

Depends on customers

GENERAL INFORMATION

Customers :

OEM’s

No. of Employees :

80 (In office – 30, In Factory – 50)

Bankers :

Indian Bank, 31, Variety Hall Road, Coimbatore – 641 001, Tamilnadu, India

Facilities :

Secured Loans :

	As on 31.03.2008 Rs. in Millions
Term Loan – Engineering Division Indian Bank (Hypothecation of Machinery Purchased)	26.998
Term Loan – Wind Mill Division Indian Bank (Secured by Hypothecation of land and building and plant and machinery of the Wind Mills. The Charge on Fixed Assets of Unit I is extended as additional security)	130.247
Term Loan – Foundry Division Indian Bank (Secured by Hypothecation of land and building and plant and machinery of the Foundry Division. The Charge on Fixed Assets of Unit I is extended as additional security)	60.542
Cash Credit – Ring Travellers Division Indian Bank (Cash Credit against Stock-in Trade and Book debts of Ring Travellers Division (Unit I and III) and additionally Secured by Mortgage on the Fixed Assets of Unit – I situated at Hosur)	25.753
Cash Credit – Spinning Division Indian Bank (Cash Credit against Stock-in Trade and Book debts of the Spinning Division situated at Coimbatore)	53.840
Total	297.380

Unsecured Loans :

	As on 31.03.2008 Rs. in Millions
Interest Free Sales Tax Loan – Unit III	13.001
IDBI – Unsecured Purchase Bill Discounting for Spinning Division	49.802
Fixed Deposits Directors	0.200
Others	2.420
Total	65.423

Banking Relations :	Satisfactory
Auditors :
Name :	N. R. Doraiswami Chartered Accountants
Address :	Race Course Road, Coimbatore – 641 018, Tamilnadu, India
Associates/Subsidiaries :

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- Each	Rs.20.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1320000	Equity Shares	Rs.10/- Each	Rs.13.200 millions

Of the above 900000 shares were allotted as fully paid-up by way of Bonus Shares by capitalization of General Reserve and 120000 Shares at a premium of Rs.190/- per share.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		13.200	13.200	12.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		379.834	320.049	218.439
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		393.034	333.249	230.439
LOAN FUNDS
1] Secured Loans		297.380	301.306	202.108
2] Unsecured Loans		65.423	17.320	19.119
TOTAL BORROWING		362.803	318.626	221.227
DEFERRED TAX LIABILITIES		106.170	95.181	68.681
TOTAL		862.007	747.056	520.347
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		535.192	473.879	312.904
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		33.845	33.346	29.374
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	185.837	142.867	121.955
	Sundry Debtors	127.808	117.665	80.339
	Cash & Bank Balances	1.542	3.389	14.803
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	76.662	39.982	21.907
Total Current Assets		391.849	303.903	239.004
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	78.923	49.379	47.252
	Provisions	22.913	14.693	13.683
Total Current Liabilities		101.836	64.072	60.935
Net Current Assets		290.013	239.831	178.069
MISCELLANEOUS EXPENSES		2.957	0.000	0.000
TOTAL		862.007	747.056	520.347

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		801.350	657.471	577.366
Other Income		12.623	19.860	8.817
Total Income		813.973	677.331	586.183
Profit/(Loss) Before Tax		121.398	134.866	94.207
Provision for Taxation		36.168	40.434	26.050
Profit/(Loss) After Tax		85.230	94.432	68.157
Earnings in Foreign Currency :
	Export Earnings	61.903	54.272	NA
Total Earnings		61.903	54.272	NA
Imports :
	Raw Materials	67.047	39.093	NA
	Stores & Spares	0.606	0.036
	Others	25.061	54.257
Total Imports		92.714	93.386	NA
Expenditures :
	Raw Material Consumed	348.138	279.254	238.483
	Increase/(Decrease) in Finished Goods	(14.030)	(25.258)	(10.058)
	Salaries, Wages, Bonus, etc.	60.185	45.400	37.015
	Managerial Remuneration	6.823	7.099	5.315
	Payment to Auditors	0.075	0.064	0.058
	Interest	29.465	20.298	15.192
	Insurance Expenses	1.076	1.103	0.810
	Power & Fuel	13.288	11.417	8.845
	Depreciation & Amortization	54.172	41.673	29.119
	Other Expenditure	193.383	161.415	167.197
Total Expenditure		692.575	542.465	491.976

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	10.47	13.94	11.63
Net Profit Margin (PBT/Sales)	(%)	15.15	20.51	16.32
Return on Total Assets (PBT/Total Assets}	(%)	12.63	16.63	16.21
Return on Investment (ROI) (PBT/Networth)		0.31	0.40	0.41
Debt Equity Ratio (Total Liability/Networth)		1.18	1.15	1.22
Current Ratio (Current Asset/Current Liability)		3.85	4.74	3.92

LOCAL AGENCY FURTHER INFORMATION

Additional Requirement of Indiamart for Trust-Seal

Excise Registration No.: AAACL3736FXM002

VAT / TIN : 33581882106

IEC Code : 0488001528

PAN / TAN : AAACL3736F

Bank Name : Indian Bank

Bank Address : Coimbatore

Bank A/c. No.: 471035877/ 447869802

Account Since : 34 Years

In case of any affiliations / memberships / certifications :

Name : ISO 9001:2000

Type : UL

Expiry Date : 2010

TRADE REFRENCES:

• Caterpiller Private Limited, Chennai
• Suzlone Wind Mill, Pune

FORM 8

Name of the company

LAKSHMI RING TRAVELLERS (COIMBATORE) LIMITED

Presented By

Mr. K. Mohanakumaraswamy, Company Secretary

1) Date and description of instrument creating the change

10.03.2005

Agreement of Hypothecation of movables and Medium Term Loan Agreement.

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

Rs.45.000 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

Hypothecation of 2 nos. Wind Electric Generators, 750 KW each NEG MICON Make. 1 No to be erected at Poolankinar Village, Udumalpet Taluk, Coimbatore District. The second 1 No to be erected at Chinnapappanathu Village, Udumalpet, Coimbatore District.

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

Medium Term Loan with interest @ 8.00% p.a. Fixed with three years reset. Repayment in 45 monthly installments with an initial holiday period of 6 months, starting from 30.09.2005, will be as follows,

Period no of Installments

Period	No. of Installments	Amount per Month Rs. In Millions
2005-06	7	0.800
2006-07	5	0.800
2006-07	7	1.000
2007-08	5	1.000
2007-08	7	1.100
2008-09	5	1.100
2008-09	7	1.200
2009-10	2	0.900

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

Indian Bank

66, Rajaji Salai, Chennai – 600 001.

6) Date and brief description of instrument modifying the charge

NA

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.

NA

This form is for	Creation of charge
Corporate identity number of the company	U17111TZ1974PLC000712
Name of the company	LAKSHMI RING TRAVELLERS (COIMBATORE) LIMITED
Address of the registered office or of the principal place of business in India of the company	34-A, Kamraj Road, Coimbatore – 641 018, Tamilnadu, India
Type of charge	Immovable Property
Particular of charge holder	Indian Bank, 31, Variety Hall Road, Coimbatore – 641 018, Tamilnadu, India E-Mail: cbemain@indianbank.coin
Nature of description of the instrument creating or modifying the charge	Letter confirming creation of equitable mortgage.
Date of instrument Creating the charge	06.09.2008
Amount secured by the charge	Rs.60.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Rate of interest is 11% p.a. for Medium Term Loan. Terms of Repayment: 50 monthly Installments of Rs.1.200 millions per month. Margin: 40% Margin for Medium Term Loan – Foundry Division. Extent and Operation of the charge: Equitable Mortgage of leasehold rights on the property situated at Coimbatore Registration District, Sulur Registration Sub-dist, Palladam Taluk, Kaniyur Village in S.F. No.452/ 1 dry acre 8.50, assessment Rs.9.54, of which land measuring 5.15 acres on lease and the factory building constructed thereon for the medium term loan of Rs.60 millions obtained for the foundry division.
Short particulars of the property charged	Equitable Mortgage of leasehold rights on the property situated at Coimbatore Registration District, Sulur Registration Sub-dist, Palladam Taluk, Kaniyur Village in S.F. No.452/ 1 dry acre 8.50, assessment Rs.9.54, of which land measuring 5.15 acres on lease and the factory building constructed thereon.

FIXED ASSETS:

• Land
• Building
• Plant and Machinery
• Electrical Equipments
• Computer Equipments
• Furniture and Office Equipments
• Laboratory Equipments
• Dies and Instruments
• Material Handling Equipments

Dividend:

The Directors recommend a dividend of 100% on the paid-up equity share capital of Rs.13.200 millions for the year ended 31.03.2008. The dividend if approved will be paid to those members whose names appear in the Register of Members as on 24.07.2008 in respect of shares held by them.

WEBSITE DETAILS:

Profile:

Subject is the pioneer in the field of Ring Travellers manufacturing in India. Subject started its operation in 1974 as a trendsetter in the highly sophisticated and accurate sphere of Traveller manufacturing. Subject has two units manufacturing Ring Travellers., one in Hosur, India and another in Anamallai, near Coimbatore, India

Backed by LMW group:  Subject is part of the well-known Lakshmi Machine Works (LMW) group. LMW is one of the largest textile machinery manufacturers in the world manufacturing the complete range of textile products. As part of this dynamic group subject has enormous resources technology, expertise and experience at its command.

Market Presence:  Subject supplies its ring travellers to over 35 countries world wide.

R&D: Subject are manufactured as per the specific requirements of the industry. Today, high-speed spinning machine require equally high-speed Travellers. And subject, by virtue of their strong R & D and a highly involved commitment to the industry provides products that keep pace with the growth of the industry.

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.47.59
UK Pound	1	Rs.74.55
Euro	1	Rs.60.57

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		63

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