MIRA INFORM REPORT

Report Date :

12.08.2011

IDENTIFICATION DETAILS

Name :	SCM GARMENTS PRIVATE LIMITED SCM TEXTILE PROCESSING MILLS (A UNIT OF SCM GARMENTS PRIVATE LIMITED)
Registered Office :	57, VOC Nagar (South), Valayankadu, Tirupur – 641 603, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	03.04.2006
Com. Reg. No.:	18-012698
Capital Investment / Paid-up Capital :	Rs.138.300 Millions
CIN No.: [Company Identification No.]	U18101TZ2006PTC012698
TAN No.: [Tax Deduction & Collection Account No.]	CMBS08948C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Hosiery Garments.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 1640000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. 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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
India	A1	A1

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

LOCATIONS

Registered Office :	57, VOC Nagar (South), Valayankadu, Tirupur – 641 603, Tamilnadu, India
Tel. No.:	91-421-4338288
Fax No.:	91-421-2248889
E-Mail :	scmcre@scmgroups.com
Website :	http://www.scmgarments.com
Corporate Office :	S.F.No.38/1-5, N.G.Palayam Privu, Thekkalur, Avinashi, Coimbatore – 641 654, Tamilnadu, India
Tel. No.:	91-4296-255282 / 064
E-Mail :	scmcre@scmgroups.com
Branch Office 1 :	Thekkalur Division S.F.No.40, N.G. Palayam Pudur Pirivu, Pudhupalayam Post, Thekkalur
Branch Office 2 :	Kavi Creations 14/18, Suriyan Nagar, ABT Road New Extension, Karuvampalayam, Tirupur, Tamilnadu, India
Windmill Sites 1 :	Koolanaickanpatti Village, Pollachi Taluk, Coimbatore District, Tamilnadu, India
Windmill Sites 2 :	Udhayathoor Village, Radhapuram Taluk, Tirunelveli District
Windmill Sites 3 :	Anuppatti Village, Puliampatti Village, Palladam Taluk, Coimbatore District, Tamilnadu, India
Windmill Sites 4 :	Veppilankulam Village, Radhapuram Taluk, Tirunelveli District

DIRECTORS

As on 30.08.2010

Name :	Mr. Kulandaivelu Manickam
Designation :	Director
Address :	2/ 5, Desabandhu Street, Ramnagar, Coimbatore – 641 009, Tamilnadu, India
Date of Birth/Age :	17.06.1954
Date of Appointment :	03.04.2006
DIN No.:	0028106
Name :	Mr. Kulandaivel Vinayakam
Designation :	Director
Address :	738D, White Field, New Damu Nagar, Puliyakulam, Pappanayakanpalayam, Coimbatore – 641 037, Tamilnadu, India
Date of Birth/Age :	05.03.1962
Date of Appointment :	03.04.2006
DIN No.:	00028737
Name :	Mr. Kulandaivel Sivalingam
Designation :	Director
Address :	SF 23/ 2/ 4, Sriram Kiruba, Bunglow Road, Tirupur – 641 602, Tamilnadu, India
Date of Birth/Age :	31.03.1954
Date of Appointment :	09.07.2007
DIN No.:	00028947
Name :	Mr. Nachammal Kulandaivel Nandhagopal
Designation :	Director
Address :	Old 36, New No.30, Bunglow Road, Oddakkadu, Tirupur – 641 602, Tamilnadu, India
Date of Birth/Age :	10.04.1964
Qualifications :	SSC
Experience :	12 Years
Date of Appointment :	03.04.2006
DIN No.:	00028953
Name :	Mr. Kulandaivelu Arumugam
Designation :	Director
Address :	97, Karuvampalayam, ABT Road, First Street, Tirupur – 641 604, Tamilnadu, India
Date of Birth/Age :	13.05.1959
Date of Appointment :	09.07.2007
DIN No.:	00028966
Name :	Mr. Paramasivam Paramasivam Kulandaivel Paramasivam
Designation :	Director
Address :	No.57, VOC Nagar, 1 ST Street, Tirupur – 641 603, Tamilnadu, India
Date of Birth/Age :	12.12.1968
Qualification :	B.com
Experience :	12 Years
Date of Appointment :	03.04.2006
DIN No.:	01164177
Name :	Mr. Tirupur Kulandaivel Chandiran
Designation :	Director
Address :	No.11, Kalidas Road, Ramnagar, Coimbatore – 641 009, Tamilnadu, India
Date of Birth/Age :	24.06.1950
Date of Appointment :	03.04.2006
DIN No.:	00031091

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.08.2010

Names of Shareholders	No. of Shares
TCS Textiles Private Limited, Tamil Nadu, India	6760000
T. K. Chandiran	1010000
K. Manickam	1010000
K. Vinayakam	1010000
N. K. Nandhagopal	1010000
P. P. K. Paramasivam	1010000
K. Sivalingam	1010000
K. Arumugam	1010000
Total	13830000

As on 30.08.2010

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	48.88
Directors or relatives of Directors	51.12
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Hosiery Garments.

Products :

Item Code No. (ITC Code)	60.06
Product Description	Hosiery Garments
Item Code No. (ITC Code)	NA
Product Description	Electrical Power Generation

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• State Bank of India, Old 24, New no.44, Stanes Road, 4^th Street, Tirupur – 641602, Tamil Nadu, India
• Bank of Baroda, 75/1, Kamaraj Road, Tirupur – 641 604, Tamil nadu, India

Facilities :

Secured Loan	31.03.2010 (Rs.in Millions)	31.03.2009 (Rs.in Millions)
Working Capital Loan	718.927	631.036
Terms Loans	580.262	472.313
Total	1299.189	1103.349
Unsecured Loan	31.03.2010 (Rs.in Millions)	31.03.2009 (Rs.in Millions)
From Shareholders and Director’s relatives	5.103	0.997
Total	5.103	0.997

Banking Relations :	--
Auditors :
Name :	G. Subramanian Chartered Accountants
Address :	136, K.G. Layout, N.R.K. Puram, Tirupur – 641 607, Tamilnadu, India
PAN.:	AQUPS2760B
Associates/Subsidiaries :	TCS Textiles Private Limited SCM International Impex Private Limited
Group Company :	· The Chennai Silks · Sree Kumaran Thangamaligai and The Chennai Silks Jewellery Mahal · SCM Textile Spinners · SCM Textile Processing Mills · SCM Energy Private Limited · The KTM Jewellery Private Limited Aathava Garments Private Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
15,000,000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13,830,000	Equity Shares	Rs.10/- each	Rs.138.300 Millions

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		138.300	138.300	138.300
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		272.912	203.168	165.107
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		411.212	341.468	303.407
LOAN FUNDS
1] Secured Loans		1299.189	1103.349	1121.822
2] Unsecured Loans		5.103	0.997	0.997
TOTAL BORROWING		1304.292	1104.346	1122.819
DEFERRED TAX LIABILITIES		22.929	4.605	0.000
TOTAL		1738.433	1450.419	1426.226
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		917.224	862.350	945.664
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		2.950	1.388	2.359
DEFERREX TAX ASSETS		0.000	0.000	5.113
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	506.274	233.356	167.977
	Sundry Debtors	435.093	534.486	515.945
	Cash & Bank Balances	45.357	30.999	42.493
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	303.872	334.087	183.821
Total Current Assets		1290.596	1132.928	910.236
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	309.932	353.172	342.884
	Other Current Liabilities	7.577	7.888	7.192
	Provisions	154.828	185.187	87.070
Total Current Liabilities		472.337	546.247	437.146
Net Current Assets		818.259	586.681	473.090
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1738.433	1450.419	1426.226

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	TURNOVER [A]		3353.632	2839.872	2080.738
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	2890.419	2405.029	1654.395
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		463.213	434.843	426.343
Less	INTEREST (D)		127.731	133.008	88.002
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		335.482	301.835	338.341
Less/ Add	DEPRECIATION/ AMORTISATION (F)		199.888	214.739	185.398
	PROFIT BEFORE TAX (E-F) (G)		135.594	87.096	152.943
Less	TAX (H)		65.851	49.035	[85.641]
	PROFIT AFTER TAX (G-H) (I)		69.743	38.061	238.584
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	--	2537.069	1709.829
	TOTAL EARNINGS		NA	2537.069	1709.829
	IMPORTS
	Plant and Machinery		--	50.589	65.181
	TOTAL IMPORTS		NA	50.589	65.181
	Earnings Per Share (Rs.)		5.04	2.75	17.25

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.08	1.34	11.47
Return on Total Assets (PBT/Total Assets}	(%)	6.14	4.36	8.24
Return on Investment (ROI) (PBT/Networth)		0.33	0.25	0.50
Debt Equity Ratio (Total Liability/Networth)		4.32	4.83	5.14
Current Ratio (Current Asset/Current Liability)		2.73	2.07	2.08

LOCAL AGENCY FURTHER INFORMATION

Review of Performance:

During the financial year, the Company has registered a net profit of Rs.69.744 Millions after interest, depreciation and taxation. The turnover of the Company during the period under report amounted to Rs.3353.632 Millions resulting in an increase of 18.09% of the previous year.

New Facility :

The company opened a new Garments Manufacturing Division at Gobichettipalayam, Erode District with modernized Imported Sewing Machines and it was started on October 2009.

Form 8 :

Corporate identity number of the company	U18101TZ2006PTC012698
Name of the company	SCM GARMENTS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	57, VOC Nagar (South), Valayankadu, Tirupur – 641 603, Tamilnadu, India E-Mail: scmcre@scmgroups.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10109227
Type of charge	Immovable property Book debts Movable Property Hypothecation of machineries and current Assets
Particular of charge holder	State bank of India, Stanes Road, 4^th Street Tirupur – 641602, Tamil Nadu, India Email Id : sbi.04201@sbi.co.in
Nature of instrument creating charge	C1A- Supplemental Agreement of loan for increase in overall limit C2A- Supplemental agreement of hypothecation of goods and assets for increase in the overall limit C5- Letter regarding the grant of individual limits within overall limit C10- Memorandum of deposit for creation of further charge for TL/OL
Date of instrument Creating the charge	28.04.2011
Amount secured by the charge	Rs.1182.700 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest EPC/FBDN/SBL as applicable to SBI exporter’s gold card scheme. TL/WCTL 4% above base rate. Terms of repayment Change in terms of repayment, existing terms continue. Margin RM/SIP/FG-25%, LC (WC)- 10% Extend and operation of the charge Consequent to increase in the below submits the overall limit stands increased from Rs.957.700 Millions to 1182.700 Millions. EPC from Rs.135.000 Millions to Rs.255.000 Millions. FBDN FROM Rs.65.000 Millions to Rs.105.000 Millions. SBL from Rs.40.000 Millions to Rs.75.000 Millions. LC(WC) fresh sanction Rs.30.000 Millions.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of goods and assets. Equitable mortgage of 7.03 acres leasehold rights of security property at Thekkalur village, Avinsahi taluk, Coimbatore District 1.32 acres at koolanaikenpatti 0.68 acres in SF no 374/1 in same village as well as 2 acres in SF 392/1 in same village with wind mill. Corporate guarantee of TCS Textiles Private Limited
Date of instrument modifying the charge	01.09.2009
Particulars of the present modification	Consequent to renewal of limits with enhancement viz. EPC from Rs.135.000 Millions, FBDN from Rs.65.000 Millions to Rs.105.000 Millions, SBL from Rs.40.000 Millions to Rs.75.000 Millions and fresh sanction of LC(WC) Rs.30.000 Millions along with existing three TL’s aggregating to Rs.588.000 Millions and FC limit of Rs.129.700 Millions, overall limit stands increased from Rs.957.700 Millions to 1182.700 Millions Hypothecation and EM of properties shall cover the enhanced overall limit of Rs.1182.700 Millions. TCS Textiles Private Limited Corporate Guarantee to continue.

FIXED ASSETS :

• Land
• Building
• Plant and Machinery
• Electrical Fittings
• Furniture and Fixtures
• Vehicles
• Computer
• Car
• Windmill

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	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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		45

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.