MIRA INFORM REPORT

Report Date :

12.08.2011

IDENTIFICATION DETAILS

Name :	M P SHAN TEX PRIVATE LIMITED
Registered Office :	S.F. No. 145/1A/A, Parappalayam Road, Near Amman Kovil, Mannarai Post, Tirupur – 641607, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	02.04.2008
Com. Reg. No.:	18-14353
Capital Investment/ Paid-up Capital:	Rs. 210.000 Millions
CIN No.: [Company Identification No.]	U17111TZ2008PTC014353
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Hosiery Garments.
No. of Employees:	Approximately 600 (in office + in factory)

RATING & COMMENTS

MIRA’s Rating :

B (27)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 980000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is a successorn of “M P Shan Tex” a partnership concern started in the year 2004. It is an established company having moderate track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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 DECLINED BY

Name :	Mr. Satish
Designation :	Accounts Department

LOCATIONS

Registered Office :	S.F. No. 145/1A/A, Parappalayam Road, Near Amman Kovil, Mannarai Post, Tirupur – 641607, Tamilnadu, India
Tel. No.:	91-421-2222492- 2162/ 2344728
Mobile No.:	91-9750995113 (Mr. Amalgaj)
Fax No.:	91-421-2221896
E-Mail :	mpshan@satyam.net.in
Website :	www.mpshan.in
Area :	2500 sq.ft.
Factory 1 / Branch Office :	Plot No. E 6 & G 10, Sipcot Industrial Growth Centre, Sipcot Main Road, P.V. Palayam, Perundurai – 638052, Tamilnadu, India
Tel. No.:	91-4294-309993
Area :	4500 sq.ft.
Location :	Owned

DIRECTORS

As on 07.07.2010

Name :	Mr. Palanisamy Umashankar
Designation :	Managing Director
Address :	Old No. 33, New No. 10, Kongu Nagar Extension, First Street, Tirupur – 641607, Tamilnadu, India
Date of Birth/Age :	20.10.1966
Date of Appointment :	02.04.2008
DIN No.:	00717252
Name :	Mr. Umasankar Suganthi
Designation :	Whole Time Director
Address :	33, Kongu Nagar, Extn., First Street, Tirupur – 641607, Tamilnadu, India
Date of Birth/Age :	09.12.1970
Date of Appointment :	02.04.2008
DIN No.:	01021059

KEY EXECUTIVES

Name :	Mr. Satish
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 07.07.2010

Names of Shareholders	No. of Shares
Palanisamy Umashankar	20625000
Umasankar Suganthi	2325000
K Palaniswami	10000
P. Mohana Palaniswami	10000
V. Sekar	10000
S Uma Maheshwari	10000
S. Preethi	10000
Total	23000000

Equity Share Breakup

As on 30.09.2010

Category		Percentage of Holding
Directors or relatives of directors		100.00
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Hosiery Garments.

Products :

Item Code No.	6019100
Product Description	Dyed Hosiery Fabric

PRODUCTION STATUS AS ON (31.03.2010)

Particulars	Unit	Actual Production
Cloth	Amt in Rs,	586163068

GENERAL INFORMATION

No. of Employees :

Approximately 600 (in office + in factory)

Bankers :

• State Bank of India, Old No. 24, New No. 44, Stanes Road, 4^th Street, Tirupur – 641602, Tamilnadu, India

Facilities :

Secured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Term Loans
From State Bank of India, Tirupur
Machinery Term Loan No. 1	22.448	28.692
Machinery Term Loan No. 2 (Non-TUF)	0.932	1.224
Machinery Term Loan No. 2 (TUF)	30.231	33.510
Machinery Term Loan No. 3	14.874	21.552
Machinery Term Loan No. 4 (TUF)	32.392	26.024
Machinery Term Loan No. 4 (Non-TUF)	15.942	4.008
State Bank of India – Corporate Loan	8.952	16.193
Working Capital
From State Bank of India, Tirupur
Cash Credit (CC)	295.114	191.087
Foreign Bill Discount Limit (FDBN)	3.666	1.986
Short Term Credit (SLC)	0.000	30.339
Inland Letter of Credit (ILC)	29.321	14.624
Total	453.872	369.239

Unsecured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
From Directors	29.600	19.600
Hire Purchase Loans	3.530	0.787
Total	33.130	20.387

Banking Relations :

-

Auditors :

Name :

Mr. S.S. Ravichandran

Chartered Accountant

Address :

24, Ganga Nagar, 1^st Street, 2^nd Floor, Tirupur – 641602, Tamilnadu, India

Associates:

Name :	US Fabrics
Legal Status :	Proprietorship
Address :	S.F. No. 145/1A/A, Parappalayam Road, Near Amman Kovil, Mannarai Post, Tirupur – 641607, Tamilnadu, India
Line of Business :	Manufacturer of Hosiery Garments.
Name :	M P Shan Tex Clothings
Legal Status :	Partnership Firm
Name :	Shwethra Trading Inc
Legal Status :	Partnership Firm
Name :	Yogesh Trading Company
Legal Status :	Partnership Firm
Name :	Knitting Textile Machinery Works
Legal Status :	Partnership Firm
Name :	Yogesh Traders
Legal Status :	Partnership Firm

CAPITAL STRUCTURE

As on 07.07.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
23000000	Equity Shares	Rs. 10/- each	Rs. 230.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
23000000	Equity Shares	Rs. 10/- each	Rs. 230.000 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
2,10,00,000	Equity Shares	Rs. 10/- each	Rs. 210.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2,10,00,000	Equity Shares	Rs. 10/- each	Rs. 210.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		210.000	210.000
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		35.509	18.672
4] (Accumulated Losses)		0.000	0.000
NETWORTH		245.509	228.672
LOAN FUNDS
1] Secured Loans		453.872	369.239
2] Unsecured Loans		33.130	20.388
TOTAL BORROWING		487.002	389.627
DEFERRED TAX LIABILITIES		8.826	5.094
TOTAL		741.337	623.393
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		263.100	270.180
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	372.008	253.229
	Sundry Debtors	196.881	135.285
	Cash & Bank Balances	19.379	8.089
	Other Current Assets	0.000	0.000
	Loans & Advances	17.791	15.627
Total Current Assets		606.059	412.230
Less : CURRENT LIABILITIES & PROVISIONS
Sundry Creditors		0.000	0.000
Other Current Liabilities		122.724	58.620
Provisions		5.781	1.308
Total Current Liabilities		128.505	59.928
Net Current Assets		477.554	352.302
MISCELLANEOUS EXPENSES		0.683	0.911
TOTAL		741.337	623.393

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Income from Operations	820.105	676.693
		Other Income	1.683	1.743
		TOTAL (A)	821.788	678.436
Less	EXPENSES
		TOTAL (B)	725.214	607.386
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		96.574	71.050
Less	FINANCIAL EXPENSES (D)		46.826	41.201
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		49.748	29.849
Less/ Add	DEPRECIATION/ AMORTISATION (F)		24.607	19.669
	PROFIT BEFORE TAX (E-F) (G)		25.141	10.180
Less	TAX (I)		8.304	6.403
	PROFIT AFTER TAX (G-I) (J)		16.837	3.777
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	17.864	14.209
	TOTAL EARNINGS		17.864	14.209
	IMPORTS
		Import Value	9.019	33.780
	TOTAL IMPORTS		9.019	33.780
	Earnings Per Share (Rs.)		0.80	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009
PAT / Total Income	(%)	2.05	0.56
Net Profit Margin (PBT/Sales)	(%)	3.07	1.50
Return on Total Assets (PBT/Total Assets}	(%)	2.89	1.49
Return on Investment (ROI) (PBT/Networth)		0.10	0.04
Debt Equity Ratio (Total Liability/Networth)		2.51	1.97
Current Ratio (Current Asset/Current Liability)		4.72	6.88

LOCAL AGENCY FURTHER INFORMATION

REVIEW OF PERFORMANCE:

The company has achieved a sales turnover of Rs. 820.100 Millions during the year, as against Rs. 676.700 Millions of the previous year 2008-09, recording a 21.19% growth. During the year the company has made profit of Rs. 16.900 Millions after interest, depreciation and taxation, as against Rs. 3.800 Millions of the previous year 2008-09. they are very happy that the company has performed so well against so many adverse factors such as power shortage, economic slow down etc, they are very optimistic that the economy would turn around during the current year and the company will come out much more impressive results.

FINANCE:

The company’s working capital limit has been effective utilized durin the year under consideration. The Company has also been prompt in the repayment of term loans. In view of the future expansion and to augment long-term resources and to maintain comfortable working capital position.

Bankers Charges Report as per Registry

Corporate identity number of the company

U17111TZ2008PTC014353

Name of the company

M P SHAN TEX PRIVATE LIMITED

Address of the registered office or of the principal place of business in India of the company

S.F. No. 145/1A/A, Parappalayam Road, Near Amman Kovil, Mannarai Post, Tirupur – 641607, Tamilnadu, India

This form is for

Modification of charge

Charge identification number of the charge to be modified

10117435

Type of charge

Immovable Property

Book Debts

Movable Property

Particular of charge holder

State Bank of India, Old No. 24, New No. 44, Stanes Road, 4^th Street, Tirupur – 641602, Tamilnadu, India

sbi.04201@sbi.co.in

Nature of instrument creating charge

1. Memoramdum of Deposit for creation of further charge fro term loan/ overall limit where the initial charge is created by way of mortgage by deposit of title deeds.
2. Supplemental Agreement of loan for increase in the overall limit
3. Supplemental Agreement of Hypothecation of Goods and Assets for increase in the overall limit
4. Letter Regarding the Grant of Individual limits within the overall limit.

Date of instrument Creating the charge

06.07.2011

Amount secured by the charge

RS. 1360.800 Millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of Interest

CC (Hypothecation) – 4.25% above BR, CL-5.00% above BR, TL I and II – 5.75% above BR, TL III and IV – 5.25% above BR, TL V-4.50% above BR.

Terms of Repayment

The corporate loan shall be paid in 36 installment starting form July 2011 and endinbg in June 2014.

Margin

RM/SIP/ FG – 25%

Receivables – 30%

Cover Perios for Receivables 0 75 days

LC (WC) – 15%

One time BG (EPCG) – 15%

Extent and Operation of the charge

First charge on the entire Raw Materials, Stock-in progress, Finished goods, Receivables and other current assets. Equitable Mortgage on Property No. 01 of All that piece and parcel of land known as plot no.s E-6, G-10 in SIPCOT Industrial Growth Centre, Perundurai containing 5.02 acres at Survey Nos. 99 and 137 and Property No. 02 of all that piece and parcel of land known as plot no.s F-20 in the SIPCOT Industrial Growth Centre, Perundurai Containing 3.55 acrs at Survey Nos. 99, 100 and 120

Short particulars of the property charged

First charge on the entire Raw Materials, Stock-in progress, Finished goods, Receivables and other current assets. Equitable Mortgage on Property No. 01 of All that piece and parcel of land known as plot no.s E-6, G-10 in SIPCOT Industrial Growth Centre, Perundurai containing 5.02 acres at Survey Nos. 99 and 137 and Property No. 02 of all that piece and parcel of land known as plot no.s F-20 in the SIPCOT Industrial Growth Centre, Perundurai Containing 3.55 acrs at Survey Nos. 99, 100 and 120

Date of instrument modifying the charge

24.04.2010

Particulars of the present modification

The limit has been enhanced from Rs. 1007.700 Millions to Rs. 1360.800 Millions as under

Facilities	Existing Rs. in Millions	Revised Rs. in Millions
CC (Hypothecation)	400.000	700.000
Corporate Loan	--	100.000
LC (WC)	100.000	100.000
BG(EPCG)	29.100	4.200
Term Loan- I-V	476.600	456.600
Current Credit Exposure	2.000	--
Total	1007.700	1360.800

This form is for

Modification of charge

Charge identification number of the modified

10117435

Corporate identity number of the company

U17111TZ2008PTC014353

Name of the company

M P SHAN TEX PRIVATE LIMITED

Address of the registered office or of the principal place of business in India of the company

S.F. No. 145/1A/A, Parappalayam Road, Near Amman Kovil, Mannarai Post, Tirupur – 641607, Tamilnadu, India

Type of charge

Immovable Property

Particular of charge holder

Name :	State Bank of India
Address :	Old No. 24, New No. 44, Stanes Road, 4^th Street, Tirupur – 641602, Tamilnadu, India
Email :	sbi.04201@sbi.co.in

Nature of description of the instrument creating or modifying the charge

Memorandum of Deposit for Creation of Mortgage Over Lease Hold Rights on total Charge For Overall Limit of Rs.489.900 millions Dated: 17.03.2009.

Date of instrument Creating the charge

17.03.2009

Amount secured by the charge

Rs. 489.900 Millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest :

1) Cash Credit - 0.25% above the SBAR

2) Term Loan - 0.75% above the SBAR presently 13.50%

3) LC - 1% above the SBAR presently 13.75%

4) Corporate Loan 1% above the SBAR presently 13.75%. p.a.

Terms of Repayment :

1) Term Loan 1 - 72 installments totalling to Rs. 64.900 millions

2) Term Loan 2 - 72 installments totalling to Rs. 51.700 millions

3) Term Loan 3 - 48 installments totalling to Rs. 47.500 millions

4) Term Loan 4 - 72 installments totalling to Rs. 52.500 millions

5) Corporate Loan - 30 installments totalling to Rs. 20.000 millions

Margin :

1) Raw Materials - 25%

2) Stock - in - process - 25%

3) Finished Goods - 25%

4) Any others - 25 %

5) Book debts/Receivables - 40%

Extent and Operation of the charge :

Lease Hold rights overall that piece and parcel of land known as plot nos.E-6, G-10 in SIPCOT Industrial Growth centre perundurai with in the village limits of Ingur, taluk of perundurai Sub-regn Dt of perundurai, in Revenue Dt of Erode containing by admeasurement 5.02 acres/or thereabouts and marked by Green coloured boundary lines on the plan annexed here to bearing Revenue Survey nos.99 (pt) &137 (pt) of Ingur village (vide lease deed dated 19.11.2008.)

Others :

Nil

Short particulars of the property charged

Lease Hold rights overall that piece and parcel of land known as plot nos.E-6, G-10 in SIPCOT Industrial Growth centre perundurai with in the village limits of Ingur, taluk of perundurai Sub-regn Dt of perundurai, in Revenue Dt of Erode containing by admeasurement 5.02 acres/or thereabouts and marked by Green coloured boundary lines on the plan annexed here to bearing Revenue Survey nos.99 (pt) and137 (pt) of Ingur village (vide lease deed dated 19.11.2008).

Date of latest modification prior to the present modification

28.07.2008

Fixed Assets

• Land
• Building
• R O And Effulent Plant
• Plant and Machinery
• Furniture and Fixtures
• Vehicles
• Computer
• Car

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. 45.27
UK Pound	1	Rs. 73.34
Euro	1	Rs. 64.58

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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		27

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.