MIRA INFORM REPORT

Report Date :

28.12.2011

IDENTIFICATION DETAILS

Name :	SREE GANESH MILLS TEX INDIA PRIVATE LIMITED
Registered Office :	32, Ranganathan Street, Indira Nagar, Erode – 638003, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	03.04.2006
Com. Reg. No.:	181-12700
Capital Investment / Paid-up Capital :	Rs.15.195 Millions
CIN No.: [Company Identification No.]	U17111TZ2006PTC012700
TAN No.: [Tax Deduction & Collection Account No.]	CMBS08920C
Legal Form :	Private Limited Liability Company
Line of Business :	To carry on the business of Manufacturing, Bleaching, Dyeing, Knitting, Printing, Computer Aided Textile Designing, Buying and Selling of Yarn, Cloth and Other Fabrics.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 80000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject 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 – 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 :	32, Ranganathan Street, Indira Nagar, Erode – 638003, Tamilnadu, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	office@tnramadossco.com tnrco5@gmail.com

DIRECTORS

(AS ON 30.09.2010)

Name :

Mr. Muthusamy Sadasivam

Designation :

Director

Address :

No.81, Chinnamuthu III rd Street, E. K. Valasu, Erode – 638011, Tamilnadu, India

Date of Birth/Age :

13.02.1967

Date of Appointment :

03.04.2006

DIN No.:

00014460

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U17111TZ2004PLC011234	GMB TEXTILES MILLS INDIA LIMITED	Director	14/07/2004	14/07/2004	Active	NO
2	U17111TZ2006PTC012700	SREE GANESH MILLS TEX INDIA PRIVATE LIMITED	Director	3/4/2006	3/4/2006	Active	NO

Name :

Mr. Muthusamy Shanmugam

Designation :

Director

Address :

12/1 Krishna Street II, Bharat Theatre Road, Veerappan Chathiram PO, Erode – 638004, Tamilnadu, India

Date of Birth/Age :

01.01.1967

Date of Appointment :

03.04.2006

DIN No.:

00014435

Name :

Mr. Muthusamy Ganesan

Designation :

Director

Address :

10/1 Krishna Street I, Bharat Theatre Road, Veerappan Chathiram PO, Erode – 638004, Tamilnadu, India

Date of Birth/Age :

25.05.1971

Date of Appointment :

03.04.2006

DIN No.:

02372702

Name :

Mrs. Shanmugam Meenakshi

Designation :

Director

Address :

12/1, Krishna Street II, Bharat Theatre Road, V. Chathiram PO, Erode – 638004, Tamilnadu, India

Date of Birth/Age :

28.03.1974

Date of Appointment :

30.09.2009

DIN No.:

02785740

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U17111TZ2006PTC012700	SREE GANESH MILLS TEX INDIA PRIVATE LIMITED	Director	30/09/2009	15/10/2008	Active	NO

Name :

Mr. Sadasivam Velayutham Latha

Designation :

Director

Address :

No.81, Chinnamuthu ST – III, Erode – 638011, Tamilnadu, India

Date of Birth/Age :

11.01.1975

Date of Appointment :

30.09.2009

DIN No.:

02785747

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U17111TZ2006PTC012700	SREE GANESH MILLS TEX INDIA PRIVATE LIMITED	Director	30/09/2009	15/10/2008	Active	NO

Name :

Mr. Erode Ganesh Gomathi

Designation :

Director

Address :

10/1 Krishna Street I, Bharat Theatre Road, Veerappan Chathiram PO, Erode – 638004, Tamilnadu, India

Date of Birth/Age :

16.07.1975

Date of Appointment :

30.09.2009

DIN No.:

02785753

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U17111TZ2006PTC012700	SREE GANESH MILLS TEX INDIA PRIVATE LIMITED	Director	30/09/2009	15/10/2008	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2010)

Names of Shareholders	No. of Shares
Muthusamy Sadasivam	6742
Muthusamy Shanmugam	14248
Muthusamy Ganesan	8865
Shanmugam Meenakshi	10409
Sadasivam Velayutham Latha	13375
Erode Ganesh Gomathi	11628
M. Muthammal	12330
S. Velayutham	4000
S. Murugesan	2500
Sunita Malhotra	15000
S. Kasthuri	2050
G. Nirmala	4050
E. Rajamanickam	1000
Sree Ganesh Mills, India	45750
Total	151947

(AS ON 30.09.2010)

Equity Shares Break – Up

Category	Percentage
Directors or relatives of directors	97.00
Other top fifty shareholders	3.00
Total	100.00

BUSINESS DETAILS

Line of Business :

To carry on the business of Manufacturing, Bleaching, Dyeing, Knitting, Printing, Computer Aided Textile Designing, Buying and Selling of Yarn, Cloth and Other Fabrics.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Axis Bank Limited

Kumar Arcade, Near Sudha Nursing Home, Perundurai Road, Erode – 638011,Tamilnadu, India

· Dhanalakshmi Bank Limited

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
Hire Purchased Loan - Dhanalakshmi Bank Limited	0.146	0.286
Total	0.146	0.286
Unsecured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
From Directors and Share Holders	1.500	5.620
Total	1.500	5.620

Banking Relations :	--
Auditors :
Name :	T. N. Ramadoss and Company Chartered Accountant
Address :	No.54, Town Railway Station Road, Salem – 638001, Tamilnadu, India
PAN No.:	AAAFT9046R

CAPITAL STRUCTURE

(AS ON 30.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
160000	Equity Share	Rs.100/- each	Rs.16.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
151947	Equity Share	Rs.100/- each	Rs.15.195 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		15.195	9.575	7.495
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		4.640	3.042	1.872
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		19.835	12.617	9.367
LOAN FUNDS
1] Secured Loans		0.146	0.286	2.491
2] Unsecured Loans		1.500	5.620	5.050
TOTAL BORROWING		1.646	5.906	7.541
DEFERRED TAX LIABILITIES		0.063	0.053	0.035
TOTAL		21.544	18.576	16.943
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.249	1.380	0.943
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1.174	0.953	4.100
	Sundry Debtors	60.214	40.099	35.735
	Cash & Bank Balances	1.084	1.739	2.367
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.083	0.359	0.915
Total Current Assets		62.555	43.150	43.117
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	41.798	25.356	26.250
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	0.469	0.611	0.886
Total Current Liabilities		42.267	25.967	27.136
Net Current Assets		20.288	17.183	15.981
MISCELLANEOUS EXPENSES		0.007	0.013	0.019
TOTAL		21.544	18.576	16.943

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES		141.812	101.862	103.440
	EXPENSES
		TOTAL	NA	NA	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		2.782	2.085	1.788
Less	FINANCIAL EXPENSES		0.252	0.147	0.230
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		2.530	1.938	1.558
Less/ Add	DEPRECIATION/ AMORTISATION		0.158	0.110	0.104
	PROFIT BEFORE TAX		2.372	1.828	1.454
Less	TAX		0.774	0.659	0.485
	PROFIT AFTER TAX		1.598	1.169	0.969
	Earnings Per Share (Rs.)		10.52	--	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
Net Profit Margin (PBT/Sales)	(%)	1.67	1.79	1.41
Return on Total Assets (PBT/Total Assets}	(%)	3.72	4.11	3.30
Return on Investment (ROI) (PBT/Networth)		0.12	0.14	0.16
Debt Equity Ratio (Total Liability/Networth)		2.21	2.53	3.70
Current Ratio (Current Asset/Current Liability)		1.48	1.66	1.59

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE

The turnover of the company has been increased from Rs.101.862 Millions to Rs.141.812 Millions by 39.21%. Due to increase in turnover the company was able to achieve profit before depreciation and Interest of Rs.2.782 Millions as against Rs.2.085 Millions previous year. Even though there is increase in Interest and depreciation costs, the Net Profit before tax has been increased from Rs.1.828 Millions to Rs.2.372 Millions. The Company has made cash profit of Rs.1.756 Millions for the financial year as against the Cash Profit of Rs.1.279 Millions in the previous year. The overall performance of the company was good.

FINANCE:

Directors do not wish to recommend any dividend, as the funds are required to meet the working capital requirements.

FORM 8:

Corporate identity number of the company	U17111TZ2006PTC012700
Name of the company	SREE GANESH MILLS TEX INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	32 Raganathan Street, Indira Nagar, Erode – 638003, Tamilnadu, India tnrco5@gmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10166513
Type of charge	Book debts Others: Entire Receivables
Particular of charge holder	Axis Bank Limited Kumar Arcade, Perundurai Road, Erode – 638011, Tamilnadu, India johnsongeorge.Ainikkal@axisbank.com
Nature of instrument creating charge	Amendment Cum Link Agreement
Date of instrument Creating the charge	01.12.2010
Amount secured by the charge	Rs.15.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: LC Bill Discounting: Interest at Originally Sanctioned 12.00% p.a. (BPLR- 2.75%) Now Modified Interest at 11.25% (Base Rate+ 3.5%). Terms of Repayments: Working Capital: Repayable on demand. Margin: NIL Extent and Operation of the charge: The Charge Operates as security for the due repayment of all liabilities in respect of the loan/ limit including costs, charges and expenses and all other monies due to the bank. Others: The Interest rate is subject to change from time to time and that the interest rate chargeable to the credit facilities granted to the company shall stand modified in accordance with the changes or modifications introduced in the Base Rate of the bank from time to time and that the company shall be liable to pay interest to the bank at such revised/ modified rate as may be applicable from time to time in relation to the Base Rate of the Bank.
Particulars of the property charged	Hypothecation of entire receivables of the company.
Particulars of the present modification	The amount secured by the Existing charge stands at Rs. 15.000 Millions only the interest rate is modified from 12% p.a. To 11.25%p.a.

FIXED ASSETS:

· Electrical and fixture

· Vehicles

· Furniture and Fittings

· Computers

· Office Equipments

· Weighting Machine

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.52.82
UK Pound	1	Rs.82.47
Euro	1	Rs.68.93

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
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	4
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		29

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.