MIRA INFORM REPORT

Report Date :

02.03.2011

IDENTIFICATION DETAILS

Name :	CHERAN MACHINES INDIA PRIVATE LIMITED

Registered Office :	SF No. 70/2A, 65/1, Athipalayam Road, Chinnavedampatti, Ganapathy, Coimbatore – 641006, Tamil Nadu

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	24.03.2004

Com. Reg. No.:	18-11058

CIN No.: [Company Identification No.]	U29262TZ2004PTC011058

TAN No.: [Tax Deduction & Collection Account No.]	CHBC03885A

PAN No.: [Permanent Account No.]	AACCC3388E

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer and Exporter of textile and garments, Printing, machines like heat transfer press / digital fusing, manual chest printing and crushing machines, expositing machines etc.

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 17000

Status :	Moderate

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject is an established company having moderate track. Trade relation are reported as fair. Business is active. Payments are reported as slow but correct. The company can be considered for small to mediocre 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

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. Sudeer Nair
Designation :	Chief Executive Officer
Contact No.:	91-9843012054
Date :	22.02.2011

LOCATIONS

Registered Office :	SF No. 70/2A, 65/1, Athipalayam Road, Chinnavedampatti, Ganapathy, Coimbatore – 641006, Tamil Nadu
E-Mail :	cheran@cheranfusing.com marketing@cheranfusing.com suresharul@hotmail.com
Website :	www.cheranfusing.com
Area :	5000 Sq.fts
Location :	Owned

Head Office :	65/1, Atthipalayam Road, Chinnavedam Patti Post, Ganapathy, Coimbatore – 641006, Tamil Nadu, India
Tel. No.:	91-422-2667691 / 2667692
Mobile No.:	91-9843012054
Fax No.:	91-422-2667690
Mobile No.:	91-9843012054 (Mr. Sudhir Vinayak)
E-Mail :	marketing@cheranfusing.com cheran@cheranfusing.com cheranmachines@gmail.com

Sales and Service Network:	Tirupur Chennai Bangalore Mumbai Indore Calcutta New Delhi and Ludhiana


Overseas :	Sri Lanka Phone: 9411-2828508 / 2817481 e-mail: khb@lankabiz.net Thailand Phone: +66-18666744 / +66-3992992 email: scintilla@csloxinfo.com

DIRECTORS

As on : 24.09.2010

Name :	Mr. Rathinasamy Mohankumar
Designation :	Chairman
Address :	47, Mamara Thottam, 2^nd Street, Ganapathy, Coimbatore – 641006, Tamilnadu, India
Date of Birth/Age :	03.02.1970
Qualification :	B.E.
Date of Appointment :	24.03.2004
Din No.:	00082496

Name :	Mrs. Rayappa Rukmani
Designation :	Director
Address :	47, Mamara thottam, 2^nd Street, Ganapathy, Coimbatore – 641006, Tamilnadu, India
Date of Birth/Age :	23.07.1950
Qualification :	Graduate
Date of Appointment :	24.03.2004
Din No.:	00082555

KEY EXECUTIVES

Name :	Mr. V Annthanarayanan
Designation :	Company Secretary

Name :	Mr. Sudhir Vinayak
Designation :	Chief Executive Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 24.09.2010

Names of Shareholders		No. of Shares
Mr. R Mohankumar		125300
Mr. R Rukmani		28000
Mr. P Rathinasamy		50000
Mr. M G Kalimuthu		10000
Mr. R Akila		4700
Mr. A. Govindasamy		2000
Mr. K. Eswaramoorthy		1800
Mr. K.G. Siva Kumar		1700
Mr. A. Kuppusamy		1700
Mr. A. Kanagarajan		1800
Mr. Palanippan		1700
Mr. K. Chandran Rayan		1700
Mr. V.Kanthamani		1500
Mr. G. Maheshwaran		1500
Mr. Premavathy		1300
Mr. Sasikala		1500
Mr. S.G. Lakshmi		1800
Mr. Maheshwari		1700
Mr. P. Geetha		1000
Mr. J. Jesu Jasmine		1400
Mr. K. Ravichanran		1500

Total		243600

Equity Share Breakup (As on 24.09.2010)

Category		Percentage of Holding

Directors or relatives of directors		100.000

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of textile and garments, Printing, machines like heat transfer press / digital fusing, manual chest printing and crushing machines, expositing machines etc.

Products :

v Heat Transfer Press / Digital Fusing

v Label Transfer Press

v Manual Chest Printing and Curing Machines

v Electric Curing Machine

v Flash / Spot Curer

v Exposing Machine

v Stretching Clamp

v Sublimation Transfer Press

v Sprint Rover

Product Description	Item Code No.
Textile Machinery	U29262

Exports :

Products :

Cutting Machines etc.

Countries :

Sri Lanka
Vietnam
Bangladesh
Kuwait

Imports :

Products :

Parts of Machines

Countries :

UK
Europe
China

Terms :

Selling :

L/C, Cash, Credit

Purchasing :

L/C, Cash, Credit

GENERAL INFORMATION

Customers :

Wholesalers
Retailers

No. of Employees :

45 (Approximately)

Bankers :

Indian Bank, 1373 a, Jayashanthi Towers, Sathy Road, Ganapathy, Coimbatore – 641006, Tamil Nadu, India

Facilities :

Secured Loans :	As on 31.03.2010 Rs. in Millions	As on 31.03.2009 Rs. in Millions
Loan Funds
Bank Borrowing for Working Capital
Indian Bank (Hypothecation against Stock, Book Debts and Fixed Assets of the company)	4.332	3.541
Vehicle Loan – Skoda - HDFC	0.461	0.767

Total	4.793	4.308

Unsecured Loans :	As on 31.03.2010 Rs. in Millions	As on 31.03.2009 Rs. in Millions
Advance from Directors – R. Mohan Kumar	0.702	0.683
Advance from Directors – R. Ruckmani	0.074	0.324

Total	0.776	1.007

Banking Relations :

Auditors :

Name :

P.Suresh

(Chartered Accountant)

Address :

144, Kaleeswara Nagar, Kottoor, Coimbatore – 641009, Tamil Nadu, India

CAPITAL STRUCTURE

As on : 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount

300000	Equity Shares	Rs. 10/- each	Rs. 3.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

30000	Equity Shares issued for consideration other than cash	Rs. 10/- each	Rs. 0.300 Million
213600	Equity Shares issued for cash	Rs. 10/- each	Rs. 2.136 Millions

		Total	Rs. 2.436 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		2.436	2.080	2.080
2] Share Application Money		0.000	0.356	0.356
3] Reserves & Surplus		2.676	1.844	1.195
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		5.112	4.280	3.631
LOAN FUNDS
1] Secured Loans		4.793	4.308	3.812
2] Unsecured Loans		0.776	1.006	0.900
TOTAL BORROWING		5.569	5.314	4.712
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		10.681	9.594	8.343

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		2.666	3.265	2.735
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.179	0.094	0.045

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5.001	6.285	4.242
	Sundry Debtors	9.668	7.053	4.466
	Cash & Bank Balances	0.261	0.607	0.403
	Other Current Assets	2.458	1.416	3.092
	Loans & Advances	0.000	0.000	0.000
Total Current Assets		17.388	15.361	12.203
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	8.923	8.415	5.975
	Provisions	0.629	0.711	0.665
Total Current Liabilities		9.552	9.126	6.640
Net Current Assets		7.836	6.235	5.563

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		10.681	9.594	8.343

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	41.400	41.400	38.900
		Other Income		0.314	0.000
		TOTAL	41.400	41.714	38.900

Less	EXPENSES
		Office Expenses
		Administrative Expenses	39.506	39.843	37.341
		Advertising Expenses
		Interest
		TOTAL	39.506	39.843	37.341

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		1.894	1.871	1.559

Less/ Add	DEPRECIATION/ AMORTISATION		0.761	0.798	0.526

	PROFIT BEFORE TAX		1.133	1.073	1.033

Less	TAX		0.301	0.424	0.490

	PROFIT AFTER TAX (G-I)		0.832	0.649	0.543

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	5.796	NA	NA
	TOTAL EARNINGS		5.796	NA	NA

	IMPORTS
		Raw Materials	0.276	0.111	NA
		Others	0.994	1.298	NA
	TOTAL IMPORTS		1.270	1.409	NA

	Earnings Per Share (Rs.)		3.42	3.12	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.00	1.52	0.85

Net Profit Margin (PBT/Sales)	(%)	2.73	2.69	1.84

Return on Total Assets (PBT/Total Assets}	(%)	5.64	7.70	5.33

Return on Investment (ROI) (PBT/Networth)		0.22	0.26	0.28

Debt Equity Ratio (Total Liability/Networth)		2.95	2.41	4.28

Current Ratio (Current Asset/Current Liability)		1.82	2.02	1.61

LOCAL AGENCY FURTHER INFORMATION

Review of operations:-

During the period, the company attained turnover of Rs. 44.700 millions as against Rs. 41.400 millions in the previous year showing an increase of 8%. The company made a profit after depreciation and tax of Rs. 0.832 million.

In order to conserve resources, the directors do not recommend any dividend for the period.

Future Outlook :

The company is growing day by day. As per Director’s vision the Market for the company’s product will grow large.

Form 8:-

This form is for	Modification of charge
Charge identification number of the modified	90327323
Corporate identity number of the company	U29262TZ2004PTC011058
Name of the company	Cheran Machines India Private Limited
Address of the registered office or of the principal place of business in India of the company	SF No. 70/2 Athipalayam Road, Chinnavedampatti, Ganapathy, Coimbatore – 641006, Tamilnadu
Type of charge	v Book Debts v Movable Property
Particular of charge holder	Indian Bank, 1373 a, Jayashanthi Towers, Sathy Road, Ganapathy, Coimbatore – 641006, Tamilnadu, India E-Mail: ganapathy@indianbank.co.in
Nature of description of the instrument creating or modifying the charge	v Agreement for increase of Cash Credit Limit v Agreement for Extension of Hypothecation / Pledge of Movables v Agreement for Cash Credit [Stock / Book Debts]
Date of instrument Creating the charge	27.04.2007
Amount secured by the charge	Rs. 3.700 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 2.00 % p.a. over the Bank’s Prime Lending Rate with a minimum of 14.50 % Terms of Repayment On Demand Margin Stock and Book Debts 25 % Extent and Operation of the charge Hypothecation of movables consisting of stock or raw materials, work in progress, finished goods, book debts and machinery to secure the due repayment of the credit facilities availed by the company from the bank
Short particulars of the property charged	Hypothecation of all movables, present and future including goods, produce, merchandise, stock whether raw or in process of manufacture and all articles manufactured, machinery, book debts, outstanding monies, recoverable, claims, bills, etc

Corporate identity number of the company	U29262TZ2004PTC011058
Name of the company	CHERAN MACHINES INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Sf No 70 2aathipalayam Road, Cinnavedampatti Ganapathy, Coimbatore, Tamil Nadu – 641006, India
This form is for	Modification of charge
Type of charge	Book debts Movable property (not being pledge) Others
Particular of charge holder	Indian Bank, Ganapathy Branch, 1373-A, Jayasanthi Towers, Sathy Road, Ganapathy (Po), Coimbatore – 641006, Tamil Nadu, India
Nature of instrument creating charge	Fresh Loan Of Rs. 2.500 millions As Money Guarantee In Addition To The Existing Occ Facility Of Rs. 5.800 millions
Date of instrument Creating the charge	29/01/2010
Amount secured by the charge	Rs. 8.300 millions
Brief Of The Principal Terms An Conditions And Extent And Operation Of The Charge	Rate Of Interest : Floating Interest Rate Of 0.50% Per Annum Over The Bplr Subject To A Minimum Of 12.50% Per Annum With Monthly Rests Plus An Overdue Interest At 2% Over And Above The Contractual/ Maximum Rate. Terms Of Repayment : Repayable Within A Period Of 1 Year As Per Counter Guarantee Agreement Margin : 15% Extent And Operation Of The Charge : First Charge On Fixed Deposit Of Rs. 3.75 Lakhs, Extension Of Em Of Factory Land And Building At Sf No 70/2, Athipalayam Road, Chinnavedampatti As Per Counter Guarantee Agreement Affixed With Common Seal Of The Company Dated 29.01.10 Other : Nil
Short particulars of the property charged (Including location of the property)	Money Guarantee- Charge On Fixed Deposit Of Rs.0.375 millions and Extension Of Equitable Mortgage Of Company Land And Building Located At S.Fno.70/2, Athipalayam Road, Chinnavedampatti, Coimbatore-6 Cc- All Moveables Consisting Of Raw Materials, Work-In-Progress And Finished Foods Cc- Book Debts (Less Than 90 Days) Cc- Plant And Machinery Situated At The Companys Factory Unit At Sf No 70/2, Athipalayam Road, Chinnavedampatti.
Particulars of the present modification	Fresh Loan Of Rs. 2.500 millions As Money Guarantee In Addition To The Existing Occ Facility Of Rs. 5.800 millions

TRADE REFERENCES :

Massholding Group
Orient Group and Companies
Gokuldas Group and Companies

Fixed assets

· Air conditioner

· Computer

· Cycle

· Machinery

· Office equipments

· Vehicle

· Furniture and Fittings

· Land

· Generator

AS PER WEBSITE

Profile

An ISO 9001:2000 certified Company; they work with the mission of achieving excellence in quality and maximizing customer satisfaction by offering a wide range of high performance and efficient printing machines catering to the textile and garment industry. They owe their success to the extensive industry knowledge, improved technologies and customer-focused approach.

An ISO 9001:2000 certified company, subject India is a renowned name, engaged in manufacturing and export of a wide range of premium quality garment / textile printing machines. Their offering include products for heat transfer / fusing, label transfer, printing and curing, electric dryer and more. They are a customer-focused company, with a strong commitment for quality that has helped them to built quality products for the past 14 years.

They are situated in Coimbatore, Manchester of South India, with sophisticated infrastructural facilities. The company has a team of highly experienced and qualified research and development professionals with dynamic engineers and CAD Computer Graphic facility. Ever since inception, the company has always achieved excellent growth and success, which is a result of its extensive understanding of Garment / Textile Printing sector, sophisticated technologies, timely deliveries, competitive prices and customer focused approach.

Infrastructure
They take pride in their sophisticated infrastructural facilities and state-of-the-art machinery to manufacture precision engineered garment / textile printing machines. The company has introduced Microprocessor technology based controller and sophisticated digital panel for the first time in the region. Their machines are perfectly engineered to fuse the desire in the product with top quality, neat finishing, negligible maintenance and trouble free operation.

Turnkey Services

Utilizing their experience, technical expertise and extensive industry knowledge of the competitive Garment / Textile Printing industry, they are capable to offer complete turnkey solutions in the design and development of machines as per the specific customer requirements to ensure their complete satisfaction.

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. 45.12
UK Pound	1	Rs. 73.43
Euro	1	Rs. 62.32

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
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	3
--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		28

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.

MIRA INFORM REPORT

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