MIRA INFORM REPORT

Report Date :

04.08.2011

IDENTIFICATION DETAILS

Name :	PRABATH MILLS
Registered Office :	111/ IAI Arul Industrial Estate, Arulpuram, Via Veerapandi, Tirupur - 541605, Coimbatore
Country :	India
Financials (as on) :	31.03.2011
Year of Establishment :	1981
TIN No.:	33926240226 CST - 750071
Capital Investment / Paid-up Capital :	Rs.112.442 Millions
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturer, Trader and Supplier of Grey Gada Cotton Cloth used in the bed linen / made ups / raw materials for bed spreads / bed cloth etc.
No. of Employees :	60 [in office – 10, and In Factory - 50] (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba [48]

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

Maximum Credit Limit :	450000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established partnership concern having satisfactory track records. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The concern can be considered normal for business dealings at usual trade terms and condition.

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. Kalidasan
Designation :	Office Executive
Contact No.:	91-421-2219070
Date :	05.07.2011

LOCATIONS

Registered Office/ Factory :	111/ IAI Arul Industrial Estate, Arulpuram, Via Veerapandi, Tirupur - 541605, Coimbatore, India
Tel. No.:	91-421-2219070 / 71 / 72
Fax No.:	91-421-2212688
E-Mail :	prabhathmills@gmail.com
Area :	82000 sq. ft.
Location :	Owned

PARTNERS

Name :	Mr. K Palanisamy
Designation :	Partner
Address :	Arul Industrial Estate, Arul Puram, Tirupur – 641605, Coimbatore, India
Date of Birth/Age :	21.01.1958
Qualification :	8^th Standard
Experience :	30 Years
Name :	Mrs. Easwari Palanisamy
Designation :	Partner
Address :	Arul Industrial Estate, Arul Puram, Tirupur – 641605, Coimbatore, India
Date of Birth/Age :	01.10.1960
Qualification :	10^th Standard
Experience :	Since 1998

KEY EXECUTIVES

Name :	Mr. Kalidasan
Designation :	Office Executive

BUSINESS DETAILS

Line of Business :	Manufacturer, Trader and Supplier of Grey Gada Cotton Cloth used in the bed linen / made ups / raw materials for bed spreads / bed cloth etc.
Terms :
Selling :	L/C, Credit (30 Days)
Purchasing :	Credit (30 Days)

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Cotton Greigh Fabrics	Meters	NA	151200	145000

GENERAL INFORMATION

Customers :

Wholesalers

No. of Employees :

60 [in office – 10, and In Factory - 50] (Approximately)

Bankers :

Axis Bank, No.3, Court Street, Tirupur – 641603, Coimbatore, India

Facilities :

Credit Limit : Rs. 100.000 millions

Particulars	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Secured Loans
From Banks
Axis Bank CC A/c	99.276	67.407
Axis Bank Term Loan	0.000	1.104
Total	99.276	68.512
Unsecured Loans	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
From Others
Devasiganmani – Nallgoundenpa	0.205	0.000
Total	0.205	0.000

Auditors :

Name

A Loganathan and T. Nazarajan

Chartered Accountant

Address :

Sabari Towers, K R R Layout, Main Street, Magalam Road, Tirupur – 641601, Tamilnadu, India

Tel. No.:

91-421-4325426

E Mail:

altnandco@gmail.com

Sister Concern :

S P Sizing Mills

Address :

Arul Industrial Estate, Arulpuram, Tirupur – 641605, India

CAPITAL STRUCTURE

As on : 31.03.2011

Partners Capital Account :	Amount (Rs. In Millions)
K. Palanisany Capital A/c	8.422
K. Palanisamy Current A/c	67.577
P. Eswari Capital A/c	5.100
P. Eswari Current A/c	31.661
K. Palanisamy Vacant Site Account	(0.318)
Total	112.442

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		112.442	133.108
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		112.442	133.108
LOAN FUNDS
1] Secured Loans		99.276	68.512
2] Unsecured Loans		0.205	0.000
TOTAL BORROWING		99.481	68.512
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		211.923	201.620
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		80.413	85.820
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	76.564	47.960
	Sundry Debtors	44.079	53.433
	Cash & Bank Balances	13.134	4.217
	Other Current Assets	25.206	26.091
	Loans & Advances	8.903	4.449
Total Current Assets		167.886	136.150
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	36.054	19.977
	Other Current Liabilities	0.000	0.000
	Provisions	0.322	0.373
Total Current Liabilities		36.376	20.350
Net Current Assets		131.510	115.800
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		211.923	201.620

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Sales	527.897	433.807
		Interest Income	0.302	1.141
		Other Income	0.241	3.041
		TOTAL (A)	528.440	437.989
Less	EXPENSES
		Cost of Goods Sold	339.796	343.702
		Rates and Taxes Paid of payable	0.065	0.000
		Audit Fees	0.060	0.000
		Other Expenses	143.670	46.863
		Freight	2.464	1.614
		Power and Fuel	7.749	12.734
		Repair to Building	0.021	0.057
		Repair to Machinery	1.451	1.222
		Salary and wages	2.586	2.695
		Bonus	0.238	0.129
		Contribution to Recognized Fund	0.280	0.412
		Any other Fund	0.082	0.117
		Insurance	0.212	0.119
		Workman and Staff welfare Expenses	0.073	0.224
		Commission	3.237	2.229
		Telephone Expenses and Donation	0.179	0.187
		TOTAL (B)	502.163	412.304
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		26.277	25.685
Less	FINANCIAL EXPENSES (D)		9.982	7.604
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		16.295	18.081
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.454	3.312
	PROFIT BEFORE TAX (E-F) (G)		10.841	14.769
Less	TAX (I)		2.585	2.300
	PROFIT AFTER TAX (G-I) (J)		8.256	12.469

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010
PAT / Total Income	(%)	2.05	2.84
Net Profit Margin (PBT/Sales)	(%)	2.05	3.40
Return on Total Assets (PBT/Total Assets}	(%)	4.36	6.65
Return on Investment (ROI) (PBT/Networth)		0.09	0.11
Debt Equity Ratio (Total Liability/Networth)		1.20	0.66
Current Ratio (Current Asset/Current Liability)		4.61	6.69

Note : Sole Proprietory and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry Records.

LOCAL AGENCY FURTHER INFORMATION

NIL

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. 44.41
UK Pound	1	Rs. 72.69
Euro	1	Rs. 63.55

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.