MIRA INFORM REPORT

Report Date :

17.01.2011

IDENTIFICATION DETAILS

Name :	CHENDURAN COTSPIN (INDIA) PRIVATE LIMITED
Registered Office :	S.F.No.628/5, D.No.4/596, Veerapandi Pirivu Palladam Road, Tirupur, Coimbatore 641605, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	12.08.1991
Com. Reg. No.:	18-003391
CIN No.: [Company Identification No.]	U17111TZ1991PTC003391
TAN No.: [Tax Deduction & Collection Account No.]	CMBT03884G
PAN No.: [Permanent Account No.]	AAACT9086C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Cotton Yarn

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 270000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The company had recorded some losses in the previous year 2009, however in 2010, its performance has shown a satisfactory improvement. 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 :	Mr. K G Senthil Kumar
Designation :	Director
Contact No.:	91-9944008822
Date :	15.01.2011

LOCATIONS

Registered Office :	S.F.No.628/5, D.No.4/596, Veerapandi Pirivu Palladam Road, Tirupur, Coimbatore 641605, Tamilnadu, India
Tel. No.:	91-421-2211801
Mobile No.:	91-9944008822 (Mr. K G Senthil Kumar)
Fax No.:	91-421-2214534
E-Mail :	psktup@dataone.in
Area :	4000 sq.ft
Location :	Owned
Factory :	S F, No. 577 Karur Road Vedasandur, Dindigul 624710, Tamilnadu, India
Tel. No.:	91-4551-260381
Fax No.:	91-4551-261333

DIRECTORS

AS ON 07.08.2010

Name :	Mr. Ponnusamy Govindaswamy
Designation :	Director
Date of Birth/Age :	08.11.1940
Date of Appointment :	12.05.1991
Name :	Mrs. Ponnusamy Govindaswamy Lakshmi
Designation :	Director
Date of Birth/Age :	02.06.1946
Date of Appointment :	10.08.2009
Name :	Mr. Kandasamy Govindaswamy Senthilkumar
Designation :	Director
Date of Birth/Age :	19.06.1966
Date of Appointment :	22.12.2008
Date of Cessation:	13.12.2010
Name :	Mr. Ponnuswamy Govindaswamy Ramesh
Designation :	Director
Date of Birth/Age :	06.11.1968
Date of Appointment :	10.08.2009
Name :	Mr. Ponnusamy Govindaswamy Balaji
Designation :	Director
Date of Birth/Age :	07.09.1973
Date of Appointment :	02.12.1994

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 07.08.2010

Names of Shareholders	No. of Shares
Mr. Ponnusamy Govindaswamy	143192
Mrs. Ponnusamy Govindaswamy Lakshmi	286377
Total	429569

AS ON 07.08.2010

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		100.00
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Cotton Yarn
Imports :
Products :	Raw Material
Countries :	Europe, USA, Middle East
Terms :
Selling :	Cash, Credit (30-60-90 Days)
Purchasing :	Cash, Credit (30-60-90 Days)

PRODUCTION STATUS

AS ON 31.03.2010

Particulars	Unit	Installed Capacity
Yarn	Spindles	33744

Particulars	Unit	Actual Production
Yarn	Kgs.	3888624.590
Hosiery Fabric	Kgs.	747506.770
Cotton and Hard Waste	Kgs.	1297923.000

GENERAL INFORMATION

Customers :

• End Users
• OEM’s

No. of Employees :

400 Approximately

Bankers :

• Lakshmi Vilas Bank, Tirupur Branch, 523, Avinashi Road, Tirupur 641602, Tamilnadu, India
• lClCl Bank Limited
• HDFC Bank Limited
• State Bank of India

Facilities :

Rs. In Millions

SECURED LOAN	31.03.2010	31.03.2009
(Secured by hypothecation of immovable and movable properties of the company and also personally guaranteed by directors of the company)
From Banks
Lakshmi Vilas Bank Limited CC	86.386	57.638
Lakshmi Vilas Bank Limited. TL	154.790	156.304
Hire Purchase Loan from
lClCl Bank Limited	0.000	0.025
HDFC Bank Limited	2.149	0.000
State Bank of India	0.516	0.000
TOTAL	243.841	213.967
UNSECURED LOAN	31.03.2010	31.03.2009
From Directors	132.658	131.199

Banking Relations :	--
Auditors :
Name :	P S Krishnan and Company Chartered Accountant
Address 1:	"Kurinji Towers" First Floor, 40A, Appachi Nagar Main Road, Tirupur 641607, Tamilnadu, India
Tel. No.:	91-421-2227526 / 2227527
Fax No.:	91-421-2227516
Address 2:	55 Universal Road, Tirupur 641601, Tamilnadu, India
Associates/Subsidiaries :	Elkaypee Spinners (P) Limited, Tamilnadu Ever Mellow, Tamilnadu G L Traders

CAPITAL STRUCTURE

AS ON 07.08.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
475000	Equity Shares	Rs. 100 each	Rs.47.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
429569	Equity Shares	Rs. 100 each	Rs.42.956 millions

(Out of the above 226942 shares of Rs 100 each were allotted as fully paid up bonus shares by way of capitallsation of 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		42.956	42.956	42.956
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		25.792	3.390	27.283
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		68.748	46.346	70.239
LOAN FUNDS
1] Secured Loans		243.841	213.967	223.050
2] Unsecured Loans		132.658	131.199	88.811
TOTAL BORROWING		376.499	345.166	311.861
DEFERRED TAX LIABILITIES		24.562	20.213	22.306
TOTAL		469.809	411.725	404.406
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		238.814	275.689	314.498
Capital work-in-progress		0.000	1.193	0.104
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	216.646	99.527	102.728
	Sundry Debtors	49.919	52.600	34.172
	Cash & Bank Balances	18.204	14.300	23.648
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	46.822	59.288	75.174
Total Current Assets		331.591	225.715	235.722
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	92.298	88.783	141.070
	Other Current Liabilities	3.798	0.179	3.048
	Provisions	4.500	1.910	1.800
Total Current Liabilities		100.596	90.872	145.918
Net Current Assets		230.995	134.843	89.804
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		469.809	411.725	404.406

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales	579.430	460.980	647.808
		Other Income	51.008	31.466	47.153
		TOTAL (A)	630.438	492.446	694.961
Less	EXPENSES
		Cost of Materials	387.010	334.025	414.140
		Increase/(Decrease) in Finished Goods	9.233	4.998	(20.570)
		Selling and Distribution Expenses	33.124	27.580	28.218
		Purchase of Finished Goods	1.889	16.295	114.135
		Direct Expenses	84.746	58.360	76.199
		Consumption of Stores and Spares, Packing Material	20.918	13.289	17.015
		Small Assets Written Off	0.000	0.000	0.032
		TOTAL (B)	536.920	454.547	629.169
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		93.518	37.899	65.792
Less	FINANCIAL EXPENSES (D)		23.389	22.203	21.887
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		70.129	15.696	43.905
Less/ Add	DEPRECIATION/ AMORTISATION (F)		42.525	41.571	42.464
	PROFIT BEFORE TAX (E-F) (G)		27.604	(25.875)	1.441
Less	TAX (H)		4.500	0.110	0.099
	PROFIT AFTER TAX (G-H) (I)		23.104	(25.985)	1.342
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.000	66.981	50.155
	IMPORTS
		Raw Materials	15.007	25.981	14.448
		Stores & Spares	0.999	0.000	0.458
		Capital Goods	0.000	0.807	0.000
	TOTAL IMPORTS		16.006	26.788	14.906
	Earnings Per Share (Rs.)		53.78	(60.49)	3.12

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.66	(5.27)	0.19
Net Profit Margin (PBT/Sales)	(%)	4.76	(5.61)	0.22
Return on Total Assets (PBT/Total Assets}	(%)	4.83	(5.16)	0.26
Return on Investment (ROI) (PBT/Networth)		0.40	(0.55)	0.02
Debt Equity Ratio (Total Liability/Networth)		7.29	9.84	6.83
Current Ratio (Current Asset/Current Liability)		3.29	2.48	1.61

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

Rs. In Millions

Particulars	31.03.2010	31.03.2009	31.03.2008
For Goods Supplies and Others	91.488	88.086	140.289
For Statutory Liabilities	0.810	0.697	0.781
Sundry Creditors	92.298	88.783	141.070

PERFORMANCE:

The company has achieved a turnover of Rs. 630.438 millions as against Rs.492.447 millions in the previous year. a growth of 28.02%.

FIXED ASSETS:

• Land
• Buildings
• Plant and Machinery
• Office Equipments
• Vehicles
• Computer
• Livestock
• Furniture and Fittings

FORM 8

Corporate identity number of the company	U17111TZ1991PTC003391
Name of the company	CHENDURAN COTSPIN (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	S.F.No.628/5, D.No.4/596, Veerapandi Pirivu Palladam Road, Tirupur, Coimbatore 641605, Tamilnadu, India
This form is for	Modification of charge
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	Lakshmi Vilas Bank, Tirupur Branch, 523, Avinashi Road, Tirupur 641602, Tamilnadu, India Email: akshayasri@gmail.com
Nature of instrument creating charge	1. Letter of hypothecation 2.term loan agreement for machinery /goods/ stocks 3. Memorandum of extension of mortgage by deposit of title deeds for additional facilities / limits sanctioned
Date of instrument Creating the charge	29.10.2010
Amount secured by the charge	Rs. 646.874 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest 1. OCC : base rate plus4.25% p.a. (presently 13.00%) payable at monthly rests. 2. Term loan : base rate plus4.25% p.a. (presently 13.00%) payable at monthly rests. Terms of repayment 1.OCC : On Demand 2. Term Loan - VIII : 63 equal monthly installments after an initial holiday period of 4 months. Margin 1. OCC : 25% 2. Term Loan : 25% Extent and operation of the charge This Charge Operates To Secure The Loan Amount Of Rs.646.874 millions. Hypothecation of entire current assets including receivables and movable fixed assets of the company. EM of immovable properties of the company as more fully described in schedule b1,b2,b3,b4,b5 and b6 description of mortgaged property of memorandum of extension of mortgage by deposit of title deeds for additional facilities / limits sanctioned.
Short particulars of the property charged (Including location of the property)	Hypothecation of all present and future produce, goods and other movable property of any kind including machinery etc., stored or to be stored in godowns at Vedasandur or elsewhere stored or installed by the company and book debts. EM of immovable properties of the company situated at 1. V.pudukottai village, vedasandur tk, palani district 2. Irrukkandurai village, radhapuram tk, tirunelveli district 3. Karnnkulam village, radhapuram tk, tirunelveli district 4. Poothipuram village, vedasandur tk, palani district 5. Vallalnathi village,aundipatty tk, theni district 6. Thadicheri village,theni tk, theni district as more fully described in schedule - b1,b2,b3,b4,b5 and b6 description of property of memorandum of extension of mortgage by deposit of title deeds for additional facilities/limits sanctioned.
Date of instrument modifying the charge	25.10.2010
Particulars of the present modification	The overall existing loan amount of Rs.572.174 millions is being enhanced to Rs.646.874 millions. The other existing terms and conditions continue to remain same.

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.45.30
UK Pound	1	Rs.71.73
Euro	1	Rs.60.40

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	NO
--AFFILIATION	YES/NO	NO
--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.