MIRA INFORM REPORT

Report Date :

19.12.2011

IDENTIFICATION DETAILS

Name :	SUBBURAJ COTTON MILLS PRIVATE LIMITED
Registered Office :	Mills Premises, Srivilliputhurroad, Rajapalayam Road, Rajapalayam – 626117, Tamil Nadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	25.05.1995
Com. Reg. No.:	18-031546
Capital Investment / Paid-up Capital :	Rs.30.000 Millions
CIN No.: [Company Identification No.]	U17111TN1995PTC031546
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Cotton Yarns and Fabrics.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 760000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Profitability of the company is under pressure. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some cautions.

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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 :	Mills Premises, Srivilliputhurroad, Rajapalayam Road, Rajapalayam – 626117, Tamil Nadu, India
Tel. No.:	91-4563-230096 / 996
Fax No.:	91-4563-230193
E-Mail :	scmrjpm@gmail.com scmrpmc@vsnl.com

/DIRECTORS

As on 30.09.2011

Name :	Mr. Alagarsamy Saravanakumar
Designation :	Managing Director
Address :	110, Sevalpatti North Street, Rajapalayam – 626 117, Tamil Nadu, India
Date of Appointment :	01.11.1997
DIN No.:	00604765

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U17111TN1995PTC031546	Subburaj Cotton Mills Private Limited	Managing director	24/04/2010	1/11/1997	-	Active	NO
2	U17111TN2004PTC052510	Vee Bee Yarn Tex Private Limited	Managing director	24/04/2010	11/2/2004	-	Active	NO
3	U40102TN2010PTC076514	Yesryes Windmill Private Limited	Director	8/7/2010	8/7/2010	-	Active	NO

Name :	Mr. Saravanakumar Ramapriya
Designation :	Director
Address :	110, Sevalpatti North Street, Rajapalayam – 626 117, Tamil Nadu, India
Date of Appointment :	03.08.2009
DIN No.:	00608381

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U17111TN2004PTC052510	Vee Bee Yarn Tex Private Limited	Director	11/2/2004	11/2/2004	-	Active	NO
2	U17111TN1995PTC031546	Subburaj Cotton Mills Private Limited	Director	3/8/2009	3/8/2009	-	Active	NO
3	U40102TN2010PTC076514	Yesryes Windmill Private Limited	Director	8/7/2010	8/7/2010	-	Active	NO

Name :	Mr. Bagyam Venkadasamy Naidu
Designation :	Director
Address :	110, Sevalpatti North Street, Rajapalayam – 626 117, Tamil Nadu, India
Date of Appointment :	25.05.1995
DIN No.:	02464231

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U17111TN1995PTC031546	Subburaj Cotton Mills Private Limited	Director	25/05/1995	25/05/1995	-	Active	NO
2	U17111TN2004PTC052510	Vee Bee Yarn Tex Private Limited	Director	11/2/2004	11/2/2004	-	Active	NO

Name :	Mr. Kasthuri Naidu Rengasamy Naidu Narayanasamy
Designation :	Director
Address :	148-A, T. P. Mils Road, Rajapalayam – 616117, Tamil Nadu, India
Date of Appointment :	25.05.1995
DIN No.:	00604835

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
K.Venkadasamy	9000
A. Saravanakumar	138000
K.R. Narayanasamy	27000
R. Rajeswari	27000
Umarani Subburaj	27000
S.Ramapriya	72000
Total	300000

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cotton Yarns and Fabrics.

Products :

Product Description	Item Code No.( ITC Code)
Cotton Yarn	5205

PRODUCTION STATUS

As on 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Ring Frame Spindles	Spindles	75000	64168	Not Available
OE – Frames	Rotors	1950	1800	Not Available
Cotton Yarn	Kgs.	Not Available	Not Available	3069977
Fabric	Mtr.	Not Available	Not Available	0
UNIT II (OE DIVISION)
Cotton Yarn	Kgs.	Not Available	Not Available	822497

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Indian Overseas Bank, Main Branch, Railway Feeder Road, Rajapalayam – 626117, Tamil Nadu, India
• State Bank of Travancore, Pandian Complex, 35-A Gandhi Road, Opposite to Bus Stand, Sivakasi – 626123, Tamil Nadu, India
• Bank of Baroda
• Bank of India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Bank of Baroda
- Working Capital Facilities	263.870	203.451
- Term Loan	230.132	227.883
Bank of India
- Working Capital Facilities	50.571	50.765
- Term Loan	87.689	87.364
UNIT II (OE DIVISION)
State Bank of Travancore
- Working Capital Facilities	60.627	63.481
- Term Loan	140.204	140.428
Total	833.093	773.372
Unsecured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Demand Loan and Vehicle Loans	34.686	29.265
From Shareholders and director	26.613	1.680
UNIT II (OE DIVISION)
Demand Loan and Vehicle Loans	1.794	0.730
Total	63.093	31.675

Banking Relations :	--
Auditors :
Name :	Mr. K. V. Raman Chartered Accountant
Address :	42, Seval patti South Street, Rajapalayam – 626117, Tamil Nadu, India
PAN.:	AASPR3652L
Related Parties :	Vee Bee Yarn Tex Private Limited, Rajapalayam V Subburaj and company, Rajapalayam V. S. and Company Grinning Factory, Rajapalayam Alagarsamy, Cotton and Yarn Trader, Rajapalayam Saravankumar, Cotton and Yarn Trader, Rajapalayam Kannan, Cotton and Yarn Trader, Rajapalayam S. Ramapriya, Cotton and yarn Trader, Rajapalayam K. R. Narayanasamy, Cotton and Yarn Trader, Rajapalayam

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.100/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.100/- each	Rs.30.000 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		30.000	30.000	30.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		160.718	157.956	176.498
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		190.718	187.956	206.498
LOAN FUNDS
1] Secured Loans		833.093	773.372	710.627
2] Unsecured Loans		63.093	31.675	83.661
TOTAL BORROWING		896.186	805.047	794.288
DEFERRED TAX LIABILITIES		18.800	18.800	0.000
TOTAL		1105.704	1011.803	1000.786
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		664.419	701.492	644.136
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		10.900	10.900	10.900
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	404.678	156.417	166.326
	Sundry Debtors	94.457	134.494	137.562
	Cash & Bank Balances	8.710	4.577	15.942
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	55.743	77.069	135.063
Total Current Assets		563.588	372.557	454.893
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000	0.000	0.000
	Other Current Liabilities	130.962	61.157	97.154
	Provisions	2.241	11.989	11.989
Total Current Liabilities		133.203	73.146	109.143
Net Current Assets		430.385	299.411	345.750
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1105.704	1011.803	1000.786

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income
		Other Income
		TOTAL (A)	976.408	867.937	835.854
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	824.608	756.399	705.568
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		151.800	111.538	130.286
Less	FINANCIAL EXPENSES (D)		82.110	74.903	56.648
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		69.690	36.635	73.638
Less/ Add	DEPRECIATION/ AMORTISATION (F)		66.424	54.527	52.515
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		3.266	(17.892)	21.123
Less	TAX (I)		0.505	0.650	21.150
	PROFIT / (LOSS) AFTER TAX (G-I) (J)		2.761	(18.542)	(0.027)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(18.032)	0.510	0.182
	Excess provision for taxation in earlier years written back		0.000	0.000	0.355
	BALANCE CARRIED TO THE B/S		(15.271)	(18.032)	0.510
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods on FOB Value	125.981	121.968	113.887
		Other Earnings Export of Goods on FOB Value (unit II (OE Division)	7.280	0.000	0.000
	TOTAL EARNINGS		133.261	121.968	113.887
	IMPORTS
		Raw Materials	0.000	35.300	8.499
		Stores & Spares	0.154	0.318	1.172
		Capital Goods	9.049	11.555	39.820
		Capital Goods (unit II (OE Division)	0.000	24.679	67.779
	TOTAL IMPORTS		9.203	71.852	117.270
	Earnings / (Loss) Per Share (Rs.)		9.20	(61.81)	46.58

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.28	(2.14)	0.00
Return on Total Assets (PBT/Total Assets}	(%)	0.27	(1.67)	1.92
Return on Investment (ROI) (PBT/Networth)		0.02	(0.10)	0.10
Debt Equity Ratio (Total Liability/Networth)		5.40	4.67	4.38
Current Ratio (Current Asset/Current Liability)		4.23	5.09	4.17

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL RESULTS

The performance during the year was satisfactory. The gross turnover has improved to Rs.976.408 Millions from Rs.867.937 Millions in the earlier year. The price of raw material has escalated but the unit price realization of the yarn has not improved correspondingly. Hence the margins have shrunk and the profitability has suffered.

FORM 8

Corporate identity number of the company	U17111TN1995PTC031546
Name of the company	SUBBURAJ COTTON MILLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Mills Premises, Srivilliputhurroad, Rajapalayam Road, Rajapalayam – 626117, Tamil Nadu E-mail : scmrjpm@gmail.com
This form is for	Creation of charge
Type of charge	Book Debts
Particular of charge holder	Indian Overseas Bank, Main Branch, Railway Feeder Road, Rajapalayam – 626117, Tamil Nadu, India E-Mail : rajpalbr@tutsco.iobnet.co.in
Nature of instrument creating charge	Letter of Hypothecation
Date of instrument Creating the charge	20.04.2011
Amount secured by the charge	Rs.135.600 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash Credit – base rate plus 3.00%, Presently 12.50% p.a. Term Loans – Base rate plus 3.2 %, Presently 12.75% p.a. Terms of repayment Cash credit limits-12 Months. Corporate term loan Rs.8.900 Millions repayable in 13 monthly installments of Rs.0.678 Million each. Term loan II Rs.6.900 Million Repayable in 58 monthly installments of Rs.0.117 Million each. Term Loan III Rs.1.900 Millions Repayable in 59 monthly installments of Rs.0.035 Million each. Term loan IV Rs.67.900 Millions Repayable in 86 monthly installments of (26 x Rs.0.030 Million, 24 x Rs.0.060 Million, 12 x Rs.0.750 Million, 23 x 1.500 Millions and 1 x Rs.2.200 Millions). All installments commencing from February, 2011 / march, 2011 Margin On working Capital 25%, Term, Loan 25% to 27% Extend and operation of the charge The charge operates, as security, interalia for the due repayment by the company to Indian Overseas Banks Rs.135.600 Millions and Bank of Baroda Rs.496.100 Millions of its term loans and working capital limited aggregating Rs.631.700 Millions and until the full discharge of other loan facilities. The charges also operates to all interests, additional interest, liquidated damages, premia in pre-payment or on redemption costs, charges, expenses and all other moneys payable by the company to Indian Overseas Bank and Bank of Baroda, in terms of the said loan agreement.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	The Whole of company’s unit I current Assets, including present and future stocks of raw material, stock in process, finished goods, semi finished goods, packing materials consumable spares and stores, book debts, outstanding monies, receivables, bills claims etc, and machineries/vehicles/goods here in after called the securities described in general terms in the schedule here to are hereby hypothecated in general terms to the bans as security to the banks. On paripassu basis between bank of Baroda and India Overseas Bank.

FIXED ASSETS:

• Mills Land
• Building
• Plant and Machinery

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 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.52.81
UK Pound	1	Rs.82.00
Euro	1	Rs.68.81

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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		30

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	-

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