MIRA INFORM REPORT

Report Date :

20.04.2011

IDENTIFICATION DETAILS

Name :	SRI GANAPATHY TEXTILES
Registered Office :	S.F. No. 537/3, Uthupalayam, Kanjapalli (PO), Avinashi Road, Annur (via), Coimbatore-641653, Tamilnadu
Country :	India
Date of Incorporation :	02.08.2010
Legal Form :	Sole Proprietory Concern
Line of Business :	Manufacturer of Grey Fabric on Semi-Automatic Power Looms.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Status :	New Concern
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is a new concern and in the process of establishing itself proprietor is reported to be having satisfactory means of his own. The valuation report and networth statement provided seems to be satisfactory. No further details or payment could be made available. It would be advisable to take adequate securities while dealing with the subject.

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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. U M Anandraj
Designation :	Proprietor
Contact No.:	91-9842285763
Date :	09.04.2011

LOCATIONS

Registered Office/ Factory :	S.F. No. 537/3, Uthupalayam, Kanjapalli (PO), Avinashi Road, Annur (via), Coimbatore-641653, Tamilnadu, India
Tel. No.:	91-4254-265298
Mobile No.:	91-9842285763 (Mr. U M Anandraj)
Area :	2400 sq.ft. (Owned)

SOLE PROPRIETOR

Name :	Mr. U M Anandraj
Designation :	Proprietor
Address :	S.F. No. 537/3, Uthupalayam, Kanjapalli (PO), Avinashi Road, Annur (via), Coimbatore-641653, Tamilnadu, India
Date of Birth/Age :	31.08.1982
Qualification :	M.Sc (Computer Science)
Experience :	40 Years
PAN No. :	AKHPA4564A

BUSINESS DETAILS

Line of Business :	Manufacturer of Grey Fabric on Semi-Automatic Power Looms.
Terms :
Selling :	Credit (60 Days)
Purchasing :	Credit (60 Days)

PRODUCTION STATUS

Particulars	Unit	Installed Capacity
Grey Fabric	Mtrs per annum	480000

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

Approximately 17 (office 1, Factory 16)

Bankers :

Corporation Bank, SME Branch, Saravanampatti, Coimbatore, Tamilnadu, India

Facilities :

Credit Facilities (Proposed)

Types of Facilities	Amount Rs. in Millions	Purpose for which required	Primary Security (Detains with approximate value) To be mentioned
Cash Credit	2.500	Working Capital	Land at S.F. No. 537/3, Uthupalayam, Kanjapalli (PO), Avinashi Road, Annur (via), Coimbatore-641653, Tamilnadu, India
Term Loan	2.400	Construction of Building and Pruche of Power Loan	Land at S.F. No. 537/3, Uthupalayam, Kanjapalli (PO), Avinashi Road, Annur (via), Coimbatore-641653, Tamilnadu, India

Banking Relations :	--
Auditors :
Name :	S Murali Dharan and Company Chartered Accountant
Address :	# 1, Dhruva Tara, 241 Dr. Rajendra Prasad Road, Tatabad, Coimbatore-641012, Tamilnadu, India
Tel. No.:	91-422-2493786/ 4377909
Fax No.:	91-422-2494479
E-Mail :	dharan2001@smdconsultancy.com

CAPITAL STRUCTURE

Capital Investment :
Owned :	Not Available
Borrowed :	Not Available
Total :	Not Available

FINANCIAL DATA

[all figures are in Rupees Millions]

NEW CONCERN

LOCAL AGENCY FURTHER INFORMATION

STATEMENT SHOWING ASSETS AND LIABILITIES

(NET WORTH STATEMENT)

NAME OF THE APPLICANT	MR. U M ANANDRAJ
NAME OF THE GUARANTOR	MRS. VIJAYALAKSHMIN

IMMOVABLE PROPERTIES	APPLICANT	GUARANTOR
Address of the property with Survey No./ Door No. etc.	537/3, Uthupalayam, Kanjapalli Post, Avinash Road, Annur Via, CBC-641653	537/3, Uthupalayam, Kanjapalli Post, Avinash Road, Annur Via, CBC-641653
Description : Land / Site/ Building	Land and Building	Land and Building
Whether free hold/ Lease hold	Freehold Land	Freehold Land
Type of Property: Commercial/ Residential/ agricultural	Commercial	Residential Property
Area/ Extent of Land	1.20 Acres	12 Cents
PRESENT MARKET/ ASSESSED VALUE	RS. 15.000 MILLIONS	RS. 3.500 MILLIONS
VEHICLES OWNED
Model/ Make	Yamaha 135	--
Date of Purchase	August 2003	--
Whether Hypothecated for Loan	No	--
PRESENT MARKET VALUE	RS. 0.020 MILLION	--
OTHER ASSETS
Cash in hand	Rs. 2.000 Million	Rs. 0.200 Million
Jewellery	Rs. 0.0150 Million	Rs. 0.200 Million
TOTAL VALUE OF OTHER ASSETS	RS. 0.350 MILLION	RS. 0.400 MILLION
TOTAL ASSETS	RS. 15.370 MILLIONS	RS. 3.900 MILLIONS
NETWORTH	RS. 15.370 MILLIONS	RS. 3.900 MILLIONS

-----------------------------------------------------------------------------------------------------------------------------

MR. U M ANANDRAJ

(Proprietor)

BALANCE SHEET

(Rs. in Millions)

SOURCES OF FUNDS		31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		0.699	0.618
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		0.699	0.618
LOAN FUNDS
1] Secured Loans		0.000	0.000
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		0.699	0.618
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.031	0.036
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.245	0.233
	Sundry Debtors	0.384	0.362
	Cash & Bank Balances	0.074	0.033
	Other Current Assets	0.000	0.000
	Loans & Advances	0.025	0.025
Total Current Assets		0.728	0.653
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.060	0.071
	Other Current Liabilities	0.000	0.000
	Provisions	0.000	0.000
Total Current Liabilities		0.060	0.071
Net Current Assets		0.668	0.582
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		0.699	0.618

PROFIT & LOSS ACCOUNT

(Rs. in Millions)

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Income	3.545	3.368
		Other Income	0.000	0.000
		TOTAL	3.545	3.368
Less	EXPENSES
		Cost of Goods Sold	3.272	3.115
		Freight	0.010	0.009
		Power and Fuel	0.004	0.003
		Rent	0.019	0.018
		Salary	0.026	0.025
		Travelling Expenses	0.004	0.004
		Vehicle Maint	0.008	0.007
		Other Expenses	0.015	0.015
		TOTAL	3.358	3.196
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		0.187	0.172
Less/ Add	DEPRECIATION/ AMORTISATION		0.004	0.005
	NET PROFIT		0.183	0.167

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009
PAT / Total Income	(%)	5.16	4.96
Net Profit Margin (PBT/Sales)	(%)	5.16	4.96
Return on Total Assets (PBT/Total Assets}	(%)	24.11	24.24
Return on Investment (ROI) (PBT/Networth)		0.26	0.27
Debt Equity Ratio (Total Liability/Networth)		0.09	0.11
Current Ratio (Current Asset/Current Liability)		12.13	9.20

------------------------------------------------------------------------------------------------------------------------------

BIO- DATA FORM

DETAILS OF GUARANTOR

Full Name	Mrs. M Vijayalakshmi
Name of the husband	Mr. U M Muthusamy
Age	58 Years
Sex	Female
Whether belongs to Scheduled castes/ Scheduled Tribes/ Minority Community	No.
Ration Card No. and Name of the Issuing office	13/G/0341241/ Civil Supplies and consumer protection department
Permanent Residence	786, Uthupalayam Kanjapalli Post, Avinashi Road, Annur-641653
Academic Qualification	VIII std.

------------------------------------------------------------------------------------------------------------------------------

TOTAL INCOME STATEMENT

ASSESSMENT YEAR 2010-2011

(Rs. In Millions)

Particulars

Amount

1. INCOME FROM BUSINESS

Net Profit as per Profit and Loss Account

0.183

Add: Inadmissible Expenses:-

Depreciation considered separately

0.004

0.187

Less: I.T. Depreciation u/s 32(1):-

Block – 1	w.d.v / Cost	Rate	Depreciation
Vehicle b/f	Rs. 0.022 Million	15%	Rs. 0.003 Millions
Block-II
Furniture b/f	Rs. 0.008 Million	10%	Rs. 0.001 Millions

0.004

TOTAL INCOME

0.183

Tax on Total Income

0.002

Add; Educational Cess @ 3%

0.000

0.002

Add: Interest u/s 234A

0.000

0.002

The Self Asst. Tax u/s 140A paid

0.002

TAD DUE

0.000

------------------------------------------------------------------------------------------------------------------------------

COST OF THE PROJECT

(Rs. in Millions)

Particulars	Total Cost	Cost Insured	Cost to be incurred	Bank		Margin
				%	Amount	%	Amount
Building	1.000	1.000	--	70%	0.700	100.00%	1.000
Machineries (Proposed – 20 Nos)	1.428	--	1.428	75%	1.040	25.24%	3.88
Machineries (Proposed)	0.886	--	0.886	75%	1.040	25.24%	0.388
Erection charges	0.050	--	0.050	0%	--	100.00%	0.050
	3.364	1.000	2.364		2.400		1.664

MEANS OF FINANCE

(Rs. in Millions)

Particulars	Amount
Promoter’s Contribution	1.664
Credit Facilities – Bank Term Loan	2.400
	4.064

------------------------------------------------------------------------------------------------------------------------------

OPERATING STATEMENT

(Rs. in Millions)

Particulars	2010-11	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17
Gross Domestic Sales of Grey Fabric	1.890	13.650	14.333	15.049	15.802	16.592	17.421
Less Excise Duty	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Net Sales	1.890	13.650	14.333	15.049	15.802	16.592	17.421
% age rise or fall in net sales	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Raw Material
- Indigenous	1.418	10.238	10.749	11.287	11.851	12.444	13.066
- Imported	--	--	--	--	--	--	--
Power and Fuel	0.050	0.300	0.309	0.318	0.328	0.338	0.348
Direct Labour (Factory wages and salary)	0.161	1.134	1.168	1.203	1.239	1.276	1.315
Other Manufacturing expenses	0.006	0.060	0.062	0.064	0.066	0.068	0.070
Depreciation	0.139	0.389	0.335	0.289	0.250	0.217	0.188
	1.773	12.120	12.623	13.161	13.734	14.342	14.986
Opening Stock in Process	0.000	0.394	0.413	0.434	0.456	0.479	0.503
Closing Stock in Process	0.394	0.412	0.434	0.456	0.479	0.503	0.469
Cost of Production	1.380	12.101	12.603	13.140	13.711	14.318	15.020
Opening Stock of Finished Gods	0.000	0.465	0.485	0.505	0.527	0.551	0.578
Closing Stock of Finished Goods	0.465	0.485	0.505	0.527	0.551	0.578	0.578
Total Cost of Sales	0.914	12.081	12.582	13.118	13.688	14.291	15.019
Selling, General and Administrative Expenses	0.342	0.360	0.371	0.382	0.393	0.405	0.417
Total Operating Expenses	1.256	12.441	12.953	13.500	14.081	14.696	15.437
Operating profit before interest	0.634	1.209	1.380	1.550	1.720	1.895	1.985
Interest- Term Loan	0.050	0.283	0.230	0.176	0.122	0.068	0.016
- Working Capital	0.031	0.250	0.250	0.250	0.250	0.250	0.250
Operating profit after interest	0.551	0.676	0.899	1.123	1.348	1.577	1.719
Other Income	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Profit before tax	0.551	0.676	0.899	1.123	1.348	1.577	1.719
Prior year expenses	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Provision for tax	0.165	0.203	0.270	0.337	0.404	0.473	0.516
Net Profit	0.386	0.473	0.630	0.786	0.944	1.104	1.203
Dividend Paid	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Retained Profit	0.386	0.473	0.630	0.786	0.944	1.104	1.203
Retained Profit	0.386	0.473	0.630	0.786	0.944	1.104	1.203
Add: Depreciation	0.139	0.389	0.335	0.289	0.250	0.217	0.188
Interest on Term Loan	0.050	0.283	0.230	0.176	0.122	0.068	0.016
Net Cash Accruals	0.575	1.145	1.195	1.252	1.316	1.389	1.407
Repayment obligation
Term Loan- Principal	0.000	0.324	0.432	0.432	0.432	0.432	0.348
Term Loan- Interest	0.050	0.283	0.230	0.176	0.122	0.068	0.016
	0.050	0.607	0.662	0.608	0.554	0.500	0.364
Debt Service Ratio	1.149	0.189	0.180	0.206	0.237	0.278	0.387

ANALYSIS OF BALANCE SHEET

(Rs. in Millions)

Particulars	2010-11	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17
LIABILITIES
Borrowings From Bank	2.500	2.500	2.500	2.500	2.500	2.500	2.500
A	2.500	2.500	2.500	2.500	2.500	2.500	2.500
Sundry Creditors	0.027	0.197	0.207	0.217	0.228	0.239	0.251
Term Loan installment, due next year	0.324	0.432	0.432	0.432	0.432	0.348	0.000
Statutory Liabilities	0.025	0.035	0.045	0.055	0.065	0.075	0.085
Other current liabilities	0.050	0.075	0.100	0.125	0.150	0.175	0.200
B	0.426	0.739	0.784	0.829	0.875	0.837	0.536
Total Current Liabilities (A+B)	2.926	3.239	3.284	3.329	3.375	3.337	3.036
Term Liabilities
Term Loans	2.076	1.644	1.212	0.780	0.348	0.348	0.000
Unsecured Loans	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Fixed an Secured Deposit	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Other Loans	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Total Term Liabilities (C)	2.076	1.644	1.212	0.780	0.348	0.348	0.000
Total outside Liabilities (A+B+C)	5.002	4.883	4.496	4.109	3.723	3.685	3.036
NET WORTH
Share Capital	2.264	2.264	2.264	2.264	2.264	2.264	2.264
Reserves	0.386	0.859	1.488	2.275	3.218	4.322	5.526
Balance in Current Account	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Total Net Worth (D)	2.650	3.123	3.752	4.539	5.482	6.586	7.790
Total Liabilities (A+B+C+D)	7.652	8.006	8.248	8.648	9.205	10.272	10.826a
ASSETS
Current Assets
Cash and Bank Balances	0.210	0.256	0.354	0.554	0.860	1.626	2.070
Domestic Receivables	1.575	1.706	1.792	1.881	1.975	2.074	2.178
Raw Materials	1.418	1.706	1.792	1.881	1.975	2.074	2.178
Process Materials	0.394	0.413	0.434	0.456	0.479	0.503	0.469
Finished Goods	0.465	0.485	0.505	0.527	0.551	0.578	0.578
Advance Payment of tax (net of provision)	0.165	0.203	0.270	0.337	0.404	0.473	0.516
Other Current Assets	0.200	0.400	0.600	0.800	1.000	1.200	1.400
Total Current Assets	4.427	5.169	5.746	6.436	7.244	8.527	9.388
Fixed Assets
Gross Block	0.000	3.225	2.837	2.501	2.212	1.962	1.745
Add: Additions	3.364	0.000	0.000	0.000	0.000	0.000	0.000
Less: Depreciation	0.139	0.389	0.335	0.289	0.250	0.217	0.188
NET BLOCK	3.225	2.837	2.501	2.212	1.962	1.745	1.556
Other Non Current Assets	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Total Other Non Current Assets	0.000	0.000	0.000	0.000	0.000	0.000	0.000
TOTAL ASSETS	7.652	8.006	8.248	8.648	9.206	10.272	10.945
	0.000	0.000	0.000	0.000	0.000	0.000	0.119
Tangible Networth	2.650	3.123	3.752	4.539	5.482	6.586	7.790
Net working Capital	1.501	1.930	2.463	3.107	3.869	5.190	6.233
Current Ratio	1.51	1.60	1.75	1.93	2.15	2.56	3.09
Debt Equity Ratio	0.78	0.53	0.32	0.17	0.06	0.05	0.00
Total Outside Liabilities/ Tangible Net Worth	1.89	1.56	1.20	0.91	0.68	0.56	0.39

COMPARATIVE STATEMENT OF CURRENT ASSETS AND CURRENT LIABILITIES

(Rs. in Millions)

Particulars	2010-11	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17
Current Assets
Raw Materials	1.418	1.706	1.792	1.881	1.975	2.074	2.178
- Imported	0.000	0.000	0.000	0.000	0.000	0.000	0.000
(Months’ Consumption)	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Stock in process	0.394	0.413	0.434	0.456	0.479	0.503	0.469
Finished Goods	0.465	0.485	0.505	0.527	0.551	0.578	0.578
(Months’ Cost of Sales)	6.11	0.48	0.48	0.48	0.48	0.49	0.46
Receivables	1.575	1.706	1.792	1.881	1.975	2.074	2.178
(Months’ Domestic Sales)	10.00	1.50	1.50	1.50	1.50	1.50	1.50
Other Current Assets	0.575	0.859	1.224	1.691	2.264	3.299	3.986
Total Current Assets	4.427	5.169	5.746	6.436	7.244	8.527	9.388
Current Liabilities
Creditors for Purchases	0.027	0.197	0.207	0.217	0.228	0.239	0.251
(Months’ Purchase)	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Statutory Liabilities	0.025	0.035	0.045	0.055	0.065	0.075	0.085
Other Current Liabilities	0.374	0.507	0.532	0.557	0.582	0.523	0.200
Total Current Liabilities	0.426	0.739	0.784	0.829	0.875	0.837	0.536

COMPUTATION OF MAXIMUM PERMISSIBLE BANK FINANCE

(Rs. in Millions)

Particulars	2010-11	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17
Total Current Assets (1)	4.427	5.169	5.746	6.436	7.244	8.527	9.388
Total Current Liabilities (2)	0.426	0.739	0.784	0.829	0.875	0.837	0.536
Working Capital GAP (3)	4.001	4.430	4.963	5.607	6.369	7.690	8.852
Minimum stipulated net working capital i.e. 25T of total current assets (4)	1.107	1.292	1.437	1.609	1.811	2.132	2.347
Actual/ Projected net WCG (5)	1.501	1.930	2.463	3.107	3.869	5.190	6.233
Item 3 minus 4 (6)	2.894	3.138	3.526	3.998	4.558	5.558	6.505
Item 3 minus 5 (7)	2.500	2.500	2.500	2.500	2.500	2.500	2.619
Maximum permissible bank finance (Item 6 or 7 whichever is lower)	2.500	21.500	2.500	2.500	2.500	2.500	2.619
Excess borrowings representing short fall in NWC (4-5)	[0.394]	[0.638]	[1.028]	[1.498]	[2.058]	[3.057]	[3.885]

FUNDS FLOW STATEMENT

(Rs. in Millions)

Particulars	2010-11	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17
SOURCES
Net Profit after tax	0.386	0.473	0.630	0.786	0.944	1.104	1.203
Depreciation	0.139	0.389	0.335	0.289	0.250	0.217	0.188
Increase in Capital/ Current Account	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Increase in term Liabilities	2.400	0.000	0.000	0.000	0.000	0.000	0.000
Decrease in Non-current assets	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	2.915	0.862	0.965	1.076	1.194	1.321	1.392
USE
Decrease in Term Liabilities	0.000	0.324	0.432	0.432	0.432	0.432	0.348
Increase in Fixed Assets	3.364	0.000	0.000	0.000	0.000	0.000	0.000
- Other non current assets	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Drawings	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	3.364	0.324	0.432	0.432	0.432	0.432	0.348
Long term surplus	[0.439]	0.538	0.533	0.644	0.762	0.889	1.044
Increase / Decrease in current assets (as per details given below)	4.307	0.742	0.577	0.690	0.808	1.283	0.861
Increase/ Decrease in Current Liabilities other than bank borrowings	0.022	0.170	0.010	0.010	0.011	0.011	0.012
Increase/ Decrease in WCG	4.285	0.573	0.567	0.680	0.797	1.272	0.849
Net Surplus	[4.724]	[0.035]	[0.034]	[0.036]	[0.035]	[0.383]	0.195
Increase/ Decrease in bank borrowings	2.500	0.000	0.000	0.000	0.000	0.000	0.000
Increase/ Decrease in net sales	0.794	11.760	0.682	0.717	0.752	0.790	0.830
Break up for above:
Increase/ Decrease in Raw Material	1.418	0.289	0.085	0.090	0.094	0.099	0.104
Increase/ Decrease in Finished Goods	0.465	0.019	0.021	0.022	0.023	0.027	0.000
Increase/ Decrease in Receivables	1.553	0.131	0.085	0.090	0.094	0.099	0.104
Increase/ Decrease in other current assets	0.704	0.266	0.319	0.422	0.529	0.990	0.610
	4.142	0.705	0.510	0.623	0.740	1.214	0.818

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PROJECT REPORT

INTRODUCTION

Indian textiles industry is a well-established with showing strong features and a bright future. In fact, the country is the second biggest textiles manufacturer worldwide, right after China. Similar force is demonstrated in the cotton production and consumption trend where India ranks just after China and USA. The textiles manufacturing business is the economic life of the country, which is still predominantly based on the agro alimentary sector. Employing around 35 million people, textiles industry stands as a pioneer activity in the Indian manufacturing sector and it has a primordial importance in a major foreign currency revenue generator and further proves it in its 14% share of industrial production and the 20% of export revenues it generated.

Textiles industry is not limited to manufacture and export of garments. The success of Indian textiles lies in an effective vertical integrations policies which have helped operators in taming the processes which while lying beyond simple manufacturing exercise do have a serious impact on it, for example, raw material treatment. Thus, cotton, jute, silk or wool and even synthetic material are also produced by this industry to complement and strengthen the garments manufacturing industry. Almost one quarter of the world’s spindle activities is hosted n India, again positioning itself just after China. Looming is another important clement that accounts for significant activity in this industry; in fact, it takes an impressive6l % share including hand looms. The country is also significant textiles fiber and yarn manufacturer on the world scene, taking on its own a 12% share of the world’s production volume. India ranks on the second place as regards in production of silk and cellulose fiber and yarn whilst standing on the fifth position when it comes to synthetic fiber and yarn.

Value addition — route to higher price realizations

Terry towels coming from the Indian factories accounted for almost 21 % of the world market. With another 1 9% share in the bed linen market, India stands as a quality supplier to the USA. Indian products are more focused towards innovation and quality. Visible efforts in quality improvement, innovations through RandD programmes, and other value-added features bring a whole new dimension to the Indian products. In turn this resulted in higher profit as compared to other regional producers.

Customized and high-value added products are generally not affected by change in market parameters. As such, there were no exceptional price fluctuations on Indian markets (luring quota removal period. But such was not the case with other regional competitors’ products, such as China, where prices were cut down significantly favoring buyers.

The emergence of power loom has transformed an art into a modern industry, producing around 30,000 million sq. meters of fabrics annually. The combination of traditional art and contemporary modern designs, has given a unique character to the Indian power loom textiles. The modernization process undertaken by the power loom industry has widened the scope of products such as grey, printed and dyed fabrics and cotton made- ups in a variety of sophisticated finishes and in a wide range of widths and sizes. Besides, the industry is now in a position to offer fabrics not only of cottons but also of rich blends of cotton, synthetics and other fibers. The process of economic liberalization has enabled tile industry to become globally competitive, not only ill terms of price, but also of quality. The ranges of products offered are many plendoured, rights from greys to finished fabrics and to made—ups.

The power loom sector plays a pivotal role in meeting the clothes needs of the country. The power loom industry produces a wide variety of cloth, both grey as well as processed. Production of cloth as well as generation of employment has been rapidly increasing in tile power loom sector. There are 19.46 lakhs power looms in the country distributed over approximately 4.34 lakhs units. The power loom sector contributes 63% of the total cloth production of the country, and provides employment to about 48.65 lakhs persons. It is estimated that more than 60% of the cloth meant for export comes from the powerloom sector.

The emergence of power-loom has transformed an art into a modern industry, producing more than 24,000 million square meters of fabric annually and employing more than 7 million workers. The combination of traditional art and contemporary modern designs, have given a unique character to the Indian power-Ioom textiles. The modernization process undertaken by the power-loom industry has widened the scope of grey, printed and dyed fabrics and cotton made-ups into a variety of sophisticated finished line of a wide range of widths and sizes. Besides, the industry is in a position to offer fabrics not only of cottons hut also of rich blends of cotton, synthetic and other fibers. The process of economic liberalization has enabled the industry to become globally competitive, not only in terms of price, hut also in quality.

It is therefore not surprising that power—loom textiles of worth more than Rs.40000.000 Millions per annum are being exported to all the four corners of the world, covering not only the developed but also the developing countries. USA, Germany, UK, Bangladesh, France, Italy, Thailand, Belgium, Sri Lanka, UAE, South Africa, Tanzania, Japan etc. have been the major markets, indicating the directional pattern of exports. The discerning buyers prefer Indian textiles not only for its texture, quality, finish, weave, variety and price but also for the wide range of the products offered.

They are proposing to instal 20 Semi-automatic looms These looms are versatile for manufacturing all type of fabrics up to 150 Cms. When comparing to shuttle-less looms like Rapier, Airjet and Waterjet, the semi-automatic looms require less power and it is more convenient and versatile. The spare parts for these looms are easily available locally.

ABOUT THE PROMOTERS

Mr. U. M. Anandaraj is aged 29 years and he has an experience of trading in grey fabric for the last two years. He was earlier working with his uncle Mr. Murthy in managing his powerloom business in Somanur. He has a net worth of Rs. 12.0000 Millions Many of his relatives are in the business of power loom manufacturing of Grey fabric and he is well- connected to the business circles.

His mother Mrs. Vijayalakshmi is standing as the guarantor for the loan and is giving her properties standing in her name as collateral security for the proposed credit facility.

The net-worth of both the promoters put together would be around Rs.20.000 Millions.

LOAN REQUIREMFNT

The promoters of this concern wish to start this unit at their own place in Uthupalayam, Avinashi Road, Annur Coimbatore Dist. The Promoters have been able to get a number of enquiries for supply of grey fabric. The promoters have already completed construction of the factory shed to install 20 semi-automatic looms. The co: of the project comes around Rs.3.364 Millions. The. promoters seek a term loan of Rs.2.400 Millions

The working capital credit requested is Rs. 2.500 Millions against stock and receivables.

TECHNICAL FEASIBILITY

The unit is situated at two Km from Annur on the Avinashi Road. This is emerging as a textile power-loom centre. There are nearly 15 similar units in the nearby areas. The basic transportation facility such as national highway and airport facility are available within a 30 Km radius. Therefore, there is a technical feasibility to do the business effectively. The main center for weaving of grey cloth is situated in Somanur/Avinashi/Pai1am belt only, which are all situated within a 20 Km radius.

AVAILABILITY OF INFRA STRUCTURE FACILITIES

BUILDING

The required Land will form part of the existing land holding of the promoter, Mr. U. M. Anandaraj, in the 1.50 Acre which is valued at Rs. 10.000 Millions. The Promoters have already completed the construction of building with a built-up area of 2400 sq.ft. This is sufficient for the proposed installation.

AVAILABILITY OF POWER AND WATER

The unit will require a power load of 40 HP EB line. This is sufficient to discharge the present and future requirement. The required water for the manufacturing process is available in the location.

AVAILABILITY OF LABOUR

This unit is situated at two Km from Annur on Avinashi Road, a town where skilled and experienced labour is easily available. And since the manufacturing process is of repetitive nature, it is easy to train new labour also. Hence there is no problem to meet the present and future labour requirements.

MARKETING

They propose to manufacture wider 40 counts grey fabrics at the global standards which are used in the Home Textiles and Pant clothing. In India, the same types of fabrics are manufactured by the following reputed mills:

1. Century Mills, Mumbai
2. Bombay Dyeing, Mumbai
3. Arvind Mills, Ahmedabad
4. Coats India, Madurai
5. Mafatlal Mills, Mumbai and Ahmedabad
6. Vijayeshwari Textiles, Coimbatore
7. Lakshmi Apparels and Wovens, Coimbatore
8. K.G. Denim, Coimbatore
9. Loyal Textiles, Kovilpatti
10. Mona Textiles, Madurai

At present the grey fabrics purchased by me readymade garment exporters in Chennai, Bangalore, Bombay and Delhi are met by. the power-loom weavers in and around Tiruchengodu, Vennanthur, Attiyampatti, Karur and Salem. They are maintaining a good contact with the garment manufacturers and. leading buying houses in the country and also overseas. So marketing of fabrics is not a problem for them . The goods will be marketed all over India.

FINANCIAL VIABILITY

On the basis of the cost and realization as they can be estimated, it is expected that the earnings should be as such to permit.

a) Reasonable return on capital invested after providing for interest and depreciation and working expenses.

b) Building up of sufficient resources.

SWOT ANALYSIS:

Strengths

• Strong geographical cluster presence in the area for the entire value chain from raw material to finished goods
• Flexible production system
• Good talent pool and designing capabilities
• Strong technical background and hands on experience of the promoter
• Very good contacts in the industry on community and relationship basis
• Efficiency of the shuttle weaving shed is comparatively higher for semi-automatic looms on return on investment basis.
• Higher production per loom

Weakness

• Highly fragmented textile processing sector
• Highly fragmented garment industry
• Inadequate capacity of the domestic textile machinery manufacturing sector
• Infrastructural bottlenecks in terms of power, utility, road transport etc
• High demand for skilled labour leading to higher cost of labour

Opportunities

• Increase in disposable income levels leading higher demand for clothing in India resulting in more demand for the entire textile value chain.
• Increase in working female population which off—sets higher labour cost.

Threats

Higher competition from cost competitive countries like China, Bangladesh and Vietnam

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PROPERTY VALUATION REPORT

Valuation done by Government Appd.

Er. K. Manickavasagam, B.E

Valuer (or) Bank Apped. Valuer

Government Apped. Valuer an Registered Valuer for I.T. Department, L.I.C. and Appd. Valuer for Corporation Bank and more than 18 Banks

Valuation of the property

Rs. 11.685 Millions

1. GENERAL INFORMATION

Name of the owner

1.Mrs. Vijayalakshmi W/o (Late) Mr. U.M. Muithusamy

2. Mr. U.M. Anandharaj s/o (Late) Mr. U M Muthusamy D. No. 786, Uthupalayam, Avinashi Road, Annur, Coimbatore

Purpose of Valuation

To assess the present fair market value of the land iwht building Property to Corporation Bank, SME Branch, Coimbatore

List of Documents produced for perusal

1. Settlement Registered Document Copy
2. Partition Release deed Copy
3. FMB, TOPO Skethc, Patta Copy

Document Reference

Individual ownership as per settlement Registered document No.: 801/2003, Dated 19.03.2003 at Annur SRO (Mrs. Vajayalakshmi)

Individual ownership as per Partition release document No. 5963/ 2009 Dated 16.09.2009 at Annur SRO (Mr. U.A. Anandharaj)

Date of Valuation

30.12.2010

Name of the person during inspection

Mr. U M Anandraj- Property owner

Approximate distance from the branch to the property

30km distance

Boundaries of the property at Document No. 801/2003 dated 19.03.2003 Item No. 1 (Mrs. Vijayalakshmi)

Description	Boundary
North	Annur to Avinashi Main Road
South	S.F. No. : 537/3 Item No.: II Property
East	S.F. No.: 535/1
West	Chennimalai Gounder Property
Extent	12.00 Cent (or) 0.12 Acre

Boundaries of the property Document No.: 5963/ 2009, Dated 16.09.2009 Item No. : II (Mr. Anbandhraj)

Description	Boundary
North	S.F. No.: 536/4 Item No.: I Property
South	S.F. No.: 538
East	S.F. No.: 535
West	S.F. No.: 537/2
Extent	1.20 Acres

Note: The approach road is not available for Item No. II. The above two items are situated in adjacent to each other and treated as single block for valuation.

Total Boundary of the property

Description	Boundary
North	Annur to Avinashi Main Road
South	S.F. No. : 538
East	S.F. No.: 535/1
West	Chennimalai Gounder Property and S.F. No. 537/2
Extent	(1.20 Acres + 0.12 Acres) – 1.32 Acres

Situations/ locations/ brief description of the land/ site

District	Coimbatore
Taluk	Coimbatore
Panchayat Union	Annur
Panchayat	Kanjapalli
Village	Kanjapalli
S.F. No.	537/3, 536/4
Road	Annur to Avinashi Road
Area Name	Uthupalayam
D. No.	786
Patta no.	1332, 1760

Assuming the entire property is letout, the probable monthly rent and advance building rent

Owners Possession

i. Whether the building plan has been i. approved

ii. If yes, Date of Approval, approving authority, and whether the building has been constructed as per the approved plan

The Land and Building Plan appd details not available

iii. If no, the reason for Non- Approval

General Remarks

1. The land and building plan appd detail is not available
2. The Property is situated in rural area.
3. The boundary lenior measurement must be necessary from revenue department.

VALUATION DETAILS

A. LAND

The total Area (Extent) of the site/ land

Document No.	Property Owner	Item No.	S.F. No.	Patta No.	Extent
801/2003	Mrs. Vijayalakshmi	I	536/4	1332	0.12 Acre
5963/2009	Mr. U.M. Anandharaj	II	537/3	1760	1.20 Acres0
Total Extent					1.32 Acres

Description of the site/ land

Saraswathi Textile, Avinashi Road, SS Rice Mil, Government School etc are situated in the surrounding area. All amenities are available at Annur with in 3km distance.

a. Character of locality

Middle Class

b. Classification Urban, Rural Area

Rural Area

c. Development of surrounding areas

Residential cum Industrial area

c. Is the locality subjected of frequent flooring

Nil

d. Feasibility to the civic amenities like school hospital, offices, markets etc.

All amenities are available at Annur with in 3km distance

e. Shape of land

As per VAO Sketch

f. Type of use to which it can be put

Residential cum Industrial Purpose

g. Any other restriction of usage

Nil

h. Natuyre of right, whether lease hold/ free hold

Free hold

i. Road Facility

Item No. 1

The property is located Annur to Avinashi Main Road Face

Item No.: II

The separate approach way is not available in this land.

The Item No.: I and II ladn are situated in adjacent to each other. So the two items treated as single block for valuation.

j. Is it a corner plot

Intermittent Plot

k. Water supply/ Potentiality

Provided

l. Sanitary arrangemnent

Provided

m. Any other sentimental/ social issue which may affect the value

--

Guide line value

Rs. 21/ s.ft. X 5227.20 sq.ft. = Rs. 0.110 Millions

Rs. 64.200/ Acre X 1.20 Acres = Rs. 0.077 Million

Total Value = Rs. 0.187 Million

Prevailing Unit market rate

Rs. 8.000 Millions/ Acre to Rs. 9.000 Millions

Unit rate adopted in this valuation

Rs. 8.000 Millions/ Acre

Valuation of the Site/ Land

Rs. 8.000 Millions/ Acre X 1.32 Acre= Rs. 10.560 Millions

BUILDING

Type of Construction

Load Bearing Structure

Quality of construction

Class “B”

Appearance of the building

Normal

Number of Floors

Ground Floor only

Maintenance of the building

Well maintained and structurally sound.

Description of the building	RCC Building in Item No.: 1	AC Sheet Building in Item No.: II
a. Structure	Load bearing Structure	Load bearing Structure
b. Superstructure	BW in CM	BW in CM
c. Roof	RCC	AC Sheet
d. Doors	CW	Steel
e. Windows	CW	Steel
f. Flooring	CM	Under Construction
g. Electricity Arrangement	Provided	Under Construction
h. Water Supply arrangement	Provided	Under Construction
i. Sanitary Arrangement	Provided	Under Construction

Plinth Area of the Building

RCC Roof Building

35’3” X 22’0” = 775.50 sq.ft.

AC Sheet Roof Building

69’0” X 32’9” = 2259.75 sq.ft.

Year of Construction

RCC Building	AC Sheet Building
7 Years	Under Construction
70 Years	60 Years
7 Years	Under Construction
63 Years	60 Years

Total Life of the building estimated

Age of building as on date

Future life of building

General Remarks

The Building plan appd details is not available.

Replacement note of construction with the existing conditions and specification

Description	Area in Sq.ft.	Replacement Rate	Replacement Value	Depreciation %	Depreciation Value	Replacement value after depreciation
RCC Roof Building	775.50	Rs. 500/ sq.ft.	Rs. 0.388 Million	9%	0.035 Million	Rs. 0.353 Million
AC Sheet Roof Building	2259.75	Rs. 3000/- sq.ft.	Rs. 0.678 Million	20% pending	Rs. 0.136 Million	Rs. 0.542 Million
Total	3035.25		Rs. 1.066 Millions		Rs. 0.170 Million	Rs. 0.895 Million

Replacement Value

Rs. 1.065 Millions

Depreciation Value

Rs. 0.170 Millions

Present Value of the Building

Rs. 0.895 Million

SERVICES AS PER GOVERNMENT NORMS

Electrical Arrangement 7%

Rs. 0.063 Million

Water Supply Arrangement 6%

Rs. 0.054 Million

Sanitary Arrangement 6%

Rs. 0.054 Million

Total Value of Services

Rs. 0.170 Million

EXTRA WORKS

Outer AC Sheet Building

Rs. 0.030 Million

Compound wall with gate

Rs. 0.030 Million

Total Value of Services

Rs. 0.060 Million

TOTAL VALUE OF THE BUILDING

Value of the building with depreciation

Rs. 0.895 Million

Value of Services

Rs. 0.170 Million

Value of Extra Work

Rs. 0.060 Million

Total Value of the Building

Rs. 1.125 Millions

Say Rs. 1.125 Millions

TOTAL VALUATION

VALUATION OF THE LAND

RS. 10.560 MILLIONS

VALUATION OF THE BUILDING

RS. 1.125 MILLIONS

FAIR MARKET VALUE OF THE PROPERTY

RS. 11.685 MILLIONS

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DETAILS OF MACHINERY

Type of Machinery	Purpose for which Required	Whether imported or indigenous	Name of supplier	Total cost of machine (in case of imported machine, the breakup of basic cost, freight, insurance and customs duty may be given)	Contribution being made by the promoters	Loan Required
Power Loan	Weaving	Indigenous	Kumar Metal Industries	Rs. 1.428 Millions
Spares	Weaving	Indigenous	Modern Engineering Company	Rs. 0.886 Million	0.914 Million	Rs. 2.400 Millions
Building	Business	--	--	Rs. 1.000 Million

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Trade References:

· S.P. Tex

Address: 719, Vadakkur Thottam, Uthupalayam, Kanjapalli Post, Avinashi Road, Annur, Coimbatore-641653, Tamilnadu, India

Contact Person: Mr. S P Anandakumar

· S.K. Textiles

Address: 3/163, P.Pudupalayam Pasur Post, Annur Via Coimbatore-641653, Tamilnadu, India

Contact Person: Mr. Karthi (91-9842430033)

· K Sevalaiappan Textiles

Address: S.F. No. 465, Pattakkaranpudur, A Mettupalayam Post, Annur, Coimbatore-641653, Tamilnadu, India

Contact person: Mr. Sampathkumar (91-9842308555)

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.44.68
UK Pound	1	Rs.72.56
Euro	1	Rs.63.53

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.