MIRA INFORM REPORT

Report Date :

10.08.2011

IDENTIFICATION DETAILS

Name :	THE KADRI MILLS (CBE) LIMITED
Registered Office :	Trichy Road, Onipudur, Coimbatore – 641 016, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	09.07.1946
Com. Reg. No.:	18-000083
Capital Investment / Paid-up Capital :	Rs.27.347 millions
CIN No.: [Company Identification No.]	U17111TZ1946PLC000083
TAN No.: [Tax Deduction & Collection Account No.]	CMBT03082C
Legal Form :	A closely held public limited liability company
Line of Business :	Manufacturer of cotton yarn.
No. of Employees :	1000 Approximately

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 1600000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. General financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

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 :	Ms. Suganthadevi
Designation :	Accounts Manager

LOCATIONS

Registered Office :	Trichy Road, Onipudur, Coimbatore – 641 016, Tamilnadu, India
Tel. No.:	91-422-2273227 / 2271727
Fax No.:	91-422-2270427
E-Mail :	kadri@kgworldwide.com gmaccounts@kgworldwide.com
Area :	45000 sq. ft
Location :	Owned

DIRECTORS

As on 30.09.2010

Name :	Mr. Ramakrishna Naidu Swaminathan
Designation :	Director
Address :	3 KG Garden, V R Puram, Coimbatore – 641 015, Tamilnadu, India.
Date of Birth/Age :	04.08.1947
Date of Appointment :	01.03.2010
DIN No. :	01550606
Name :	Mr. G. Kannappan
Designation :	Chairman cum Managing Director
Address :	126 Arts College Road, Coimbatore – 641 018, Tamilnadu, India.
Date of Birth/Age :	02.07.1947
Date of Appointment :	25.10.1975
DIN No. :	00265979
Name :	Mr. G. Ramaswamy
Designation :	Managing Director
Address :	126 Arts College Road, Coimbatore – 641 018, Tamilnadu, India.
Date of Birth/Age :	09.01.1949
Date of Appointment :	01.11.1996
DIN No. :	01225507
Name :	Mr. G. Vijayakumar
Designation :	Managing Director
Address :	126 Arts College Road, Coimbatore – 641 018, Tamilnadu, India.
Date of Birth/Age :	05.08.1953
Date of Appointment :	25.10.1975
DIN No. :	00266078
Name :	Mr. S. Venkateswaran
Designation :	Whole Time Director
Address :	214 KG Mills Quarter, Kariampalayam Annur, Coimbatore – 641 653, Tamilnadu, India.
Date of Birth/Age :	10.01.1968
Date of Appointment :	30.01.2009
DIN No. :	02645372
Name :	Mr. G. Bakthavathsalam
Designation :	Director
Address :	126 Arts College Road, Coimbatore – 641 018, Tamilnadu, India.
Date of Birth/Age :	06.07.1942
Date of Appointment :	18.10.1984
DIN No. :	00007132
Name :	Mr. R Swaminathan
Designation :	Director
Address :	3 KG Garden, Kamaraj Road, Coimbatore – 641 015, Tamilnadu, India
Date of Birth/Age :	04.09.1947
Date of Appointment :	25.03.1997
Name :	Mr. K. Jayaraj
Designation :	Director
Address :	53/2 MV Street, 6^th Street, K K Pudur, Coimbatore – 641 038, Tamilnadu, India.
Date of Birth/Age :	05.06.1959
Date of Appointment :	27.10.2001
DIN No. :	00921521

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Kannappan G	526225
Vijayakumar G	587551
Ramaswamy G	550147
Bakthavathsalam G	143565
Shanthamani R	10360
Vasanthi R	21360
Kiruthiga K	109300
Anoosh Ramaasamy	62120
Ashyanth R	63000
Sanjana V	34400
Saritha Santhanalaksh	38216
Kannappan G	37280
Kannappan G	40080
Vijayakumar G	12080
Geethalakshmi V	16080

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	0.31
Directors or relatives of directors	99.69
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of cotton yarn.

Products :

Cotton Yarn

Product Description	Item Code
Cotton Yarn	520511.01 to 520545.02
Blankets and Sheetings	630130.00 to 630492.00

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity *	Actual Production
Spindles	--	NA	28920	--
Rotors	--	NA	22280	--
Looms	--	NA	35	--

* As certified by the Management.

GENERAL INFORMATION

No. of Employees :

1000 Approximately

Bankers :

· Bank of Baroda

Corporate Financial Service Branch, Bank Road, Coimbatore – 641 018, Tamil Nadu, India

· State Bank o Travancore

Pappanaickenpalayam Branch, Coimbatore

· Indian Bank

Main Branch – Coimbatore

· Bank of India

Main Branch – Coimbatore

· Oriental Bank of Commerce

Avinashi Road Branch, Coimbatore

Facilities :

Secured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
From Banks
Working Capital Loan	192.748	64.914
Term Loan	568.571	581.850
Total	761.319	646.764

Unsecured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
Fixed Deposits
From Public	6.224	10.144
Inter Corporate Deposit	3.362	71.802
Total	9.586	81.946

Banking Relations :	--
Auditors :
Name :	M J Vijayaraaghavan Chartered Accountant
Address :	MSS Memorial Building, No. 6, D B Road, Coimbatore – 641 002, Tamil Nadu, India
Associates :	· Sharadha Terry Products Limited · Sri Palani Murugan Enterprises Limited · G K Investments (Private) Limited · G V Investments (Private) Limited · G R V Investments (Private) Limited · K G Textiles Limited · Nirmala Family Trust · Ananya Education Trust · Ananya Marriage Trust · Sambavi Education Trust · Sambavi Marriage Trust · Shivani Education Trust · Shivani Marriage Trust
Subsidiaries :	· K G Tex Limited CIN No. : U17115TZ1989PLC002501 · Govindh Murugan Enterprises Limited CIN No. : U17111TZ2002PLC010397 · K G Non Wovens Private Limited CIN No. : U29265TZ1989PTC002502 · K G S Spincot Limited CIN No. : U17111TZ2002PLC010319 · Shankarshana Textile Limited CIN No. : U17111TZ2004PLC011485
Partnership Firm :	K G House (Madras)

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2734710	Equity Shares	Rs.10/- each	Rs.27.347 millions

(Out of the issued capital, 1120000 Equity Shares of Rs.10/- each were issued as fully paid up Bonus Shares by capitalizing reserves.)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		27.347	27.347	27.347
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		368.487	351.321	346.762
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		395.834	378.668	374.109
LOAN FUNDS
1] Secured Loans		761.319	646.764	696.768
2] Unsecured Loans		9.586	81.946	73.308
TOTAL BORROWING		770.905	728.710	770.076
DEFERRED TAX LIABILITIES		67.200	48.000	42.600
TOTAL		1233.939	1155.378	1186.785
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		831.824	865.932	610.253
Capital work-in-progress		5.325	0.000	289.195
INVESTMENT		2.947	2.947	2.947
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	232.672	133.463	155.827
	Sundry Debtors	131.060	135.218	109.502
	Cash & Bank Balances	27.582	22.632	8.232
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	100.221	75.443	83.947
Total Current Assets		491.535	366.756	357.508
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	97.692	80.257	73.118
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	0.000	0.000	0.000
Total Current Liabilities		97.692	80.257	73.118
Net Current Assets		393.843	286.499	284.390
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1233.939	1155.378	1186.785

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales and Other Operating Income	1725.082	1756.413	1424.310
		Other Income	6.285	14.317	16.820
		TOTAL (A)	1731.367	1770.730	1441.130
Less	EXPENSES
		Raw Material Consumed	891.243	1056.402	792.142
		Chemicals Consumed	58.526	47.668	51.326
		Stores Consumed	37.263	34.847	34.797
		Power and Fuel	285.259	239.165	239.436
		Personnel Cost	132.110	121.270	130.131
		Repairs and Maintenance	83.173	49.373	53.799
		Other Expenses	89.318	88.227	77.573
		Change in Stock	(4.549)	(3.398)	(15.993)
		Donations	0.512	0.094	0.068
		Depreciation Withdrawn	(0.370)	(0.040)	0.000
		TOTAL (B)	1572.485	1633.608	1363.279
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		158.882	137.122	77.851
Less	FINANCIAL CHARGES (D)		71.655	79.028	43.077
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		87.227	58.094	34.774
Less/ Add	DEPRECIATION/ AMORTISATION (F)		50.880	48.545	33.580
	PROFIT BEFORE TAX (E-F) (G)		36.347	9.549	1.194
Less	TAX (H)		19.181	4.990	(2.790)
	PROFIT AFTER TAX (G-H) (I)		17.166	4.559	3.984
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		209.951	205.392	204.178
Less	APPROPRIATIONS
		Premium on Capital Reduction	0.000	0.000	2.770
	BALANCE CARRIED TO THE B/S		227.117	209.951	205.392
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	178.466	87.189	63.106
	TOTAL EARNINGS		178.466	87.189	63.106
	IMPORTS
		Spares and Components	11.816	1.029	5.213
		Raw Materials	0.000	16.407	0.000
		Capital Goods	1.446	2.430	181.586
	TOTAL IMPORTS		13.262	19.866	186.799
	Earnings Per Share (Rs.)		6.28	1.67	1.45

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.99	0.26	0.28
Net Profit Margin (PBT/Sales)	(%)	2.11	0.54	0.08
Return on Total Assets (PBT/Total Assets}	(%)	2.75	0.77	0.12
Return on Investment (ROI) (PBT/Networth)		0.09	0.03	0.00
Debt Equity Ratio (Total Liability/Networth)		2.19	2.14	2.25
Current Ratio (Current Asset/Current Liability)		5.03	4.57	4.89

LOCAL AGENCY FURTHER INFORMATION

FORM 8

Corporate identity number of the company	U17111TZ1946PLC000083
Name of the company	THE KADRI MILLS (CBE) LIMITED
Address of the registered office or of the principal place of business in India of the company	Trichy Road, Onipudur, Coimbatore – 641 016, Tamilnadu, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90001166
Type of charge	· Immovable property · Book debts · Movable property (not being pledge)
Particular of charge holder	Bank of Baroda Corporate Financial Service Branch, Bank Road, Coimbatore – 641 018, Tamil Nadu, India
Nature of instrument creating charge	Multiple Banking agreement ceding of charges
Date of instrument Creating the charge	21.06.2011
Amount secured by the charge	Rs.1167.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per the agreement Terms of Repayment As per the agreement Margin As per the agreement Extent and Operation of the charge This charge operates to secure the aggregate loan amount of rs.1167.000 millions. Hypothecation of the whole of the company's current assets including receivables and movable block assets both present and future on pari passu basis. Em of the whole of the company's immovable block assets including land and buildings on pari passu basis.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	· Hypothecation of entire current assets, book debts, plant and machinery, furniture and fittings, patterns, tools, laboratory equipments, computers, office equipments, stocks of raw materials, · Contd..) Stock in progress, finished goods, semi finished goods, packing materials, outstanding monies, receivables, bills, claims etc., both present and future on pari passu basis. · The whole of the company's immovable block assets including land and buildings on pari passu basis.
Particulars of the present modification	The overall existing loan amount of Rs.1130.000 millions is being enhanced to Rs.1167.000 millions The other terms and conditions continue to remain the same.

FIXED ASSETS

· Land

o Leasehold

o Freehold

· Buildings

· Machinery

· Electrical Machinery

· Furniture

· Vehicles

· Livestock

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.45.17
UK Pound	1	Rs.73.72
Euro	1	Rs.64.26

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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.