MIRA INFORM REPORT

Report Date :

17.10.2011

IDENTIFICATION DETAILS

Name :	THIAGARAJAR MILLS PRIVATE LIMITED
Formerly Known As :	SAROJA MILLS LIMITED
Registered Office :	Kappalur, Madurai – 625008, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	26.06.1935
Com. Reg. No.:	18-002515
Capital Investment / Paid-up Capital :	Rs.10.802 Millions
CIN No.: [Company Identification No.]	U27209TN1935PTC002515
TAN No.: [Tax Deduction & Collection Account No.]	MRIT00759D
PAN No.: [Permanent Account No.]	AAACT4304R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Cotton Yarn.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 4441000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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 – 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 :	Kappalur , Madurai – 625008, Tamilnadu, India
Tel. No.:	91-452-2482595 (4 Lines) 91-4549-280620/280592/280919
Fax No.:	91-452-2482590/2486085
E-Mail :	securities@tmills.com office@tmills.com thiagarajar@gmail.com
Website :	www.tmills.com

DIRECTORS

As on 26.08.2011

Name :

Dr. (TMT) Radha Thiagarajan

Designation :

Chairman Cum Managing Director

Address :

Thiagarajar Mills Premises, Kappalur, Madurai - 625008, Tamilnadu, India

Date of Birth/Age :

16.04.1925

Date of Appointment :

11.09.1970

DIN No.:

00250473

Other Directorship :

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
U27209TN1935PTC002515	Thiagarajar Mills Private Limited	Managing director	25/08/2008	11/09/1970	-	Active	NO
U01119TN1975PTC006882	Karumuttu Farms Private Limited	Director	7/07/1982	7/07/1982	-	Active	NO
U17115TN1990PLC018665	Colour Yarns Limited	Director	1/02/1990	1/02/1990	-	Active	NO

Name :

Mr. Thiagarajan Chettiar Kannan

Designation :

Managing Director

Address :

Thiagarajar Mills Premises, Kappalur, Madurai - 625008, Tamilnadu, India

Date of Birth/Age :

09.05.1953

Date of Appointment :

01.07.1976

DIN No.:

00040674

Other Directorship :

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
L17111TN1946PLC003270	Vtm Limited	Director	23/03/1973	23/03/1973	-	Active	NO
U27209TN1935PTC002515	Thiagarajar Mills Private Limited	Managing director	25/08/2008	1/07/1976	-	Active	NO
U17120MH1967PLC013669	Confederation Of Indian Textile Industry	Director	1/09/1986	1/09/1986	-	Active	NO
U17115TN1990PLC018665	Colour Yarns Limited	Director	10/06/1992	10/06/1992	-	Active	NO
L34300TN1974PLC006703	Sundaram Brake Linings Limited	Director	16/07/1999	16/07/1999	-	Active	NO
L35921TN1992PLC022845	Tvs Motor Company Limited	Director	27/07/2000	27/01/2000	-	Active	NO
U17111TN1960PLC004340	Sundaram Textiles Limited	Director	23/08/2005	23/08/2005	-	Active	NO
U01712TZ2005PLC012329	Sima Textile Processing Centre Limited	Director	1/12/2005	1/12/2005	-	Active	NO
U93000TZ2007PLC013588	Sima Textile Park Company Limited	Director	30/03/2007	30/03/2007	-	Under Process of Striking off	NO
U74990TN2010PLC076714	Thiagarajar Telekom Solutions Limited	Director	23/07/2010	23/07/2010	-	Active	NO
U25111MH2007PTC172456	Atc Tires Private Limited	Director	16/09/2011	15/11/2010	-	Active	NO

Name :

Mr. Thiru A. Maraippan

Designation :

Whole-time director

Address :

92/2, Thangavel Rastha (South) Meenakshipuram, Aruppukkottai Road, Madurai – 625012, Tamilnadu, India

Date of Birth/Age :

19.06.1937

Date of Appointment :

20.10.1999

DIN No.:

00051370

Other Directorship :

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
U17111TN1979PTC007748	Paramount Textile Mills Private Limited	Director	29/12/1983	29/12/1983	19/07/2010	Active	NO
U25190TN1985PTC012234	Thiagarajar Rubbers Private Limited	Director	30/09/1985	30/09/1985	-	Active	NO
U01119TN1975PTC006882	Karumuttu Farms Private Limited	Director	24/08/1987	24/08/1987	-	Active	NO
U65991TN1988PTC015298	Thiagarajar Leasing Private Limited	Director	21/01/1988	21/01/1988	-	Active	NO
U17115TN1990PLC018665	Colour Yarns Limited	Director	28/03/1991	28/03/1991	-	Active	NO
U27209TN1935PTC002515	Thiagarajar Mills Private Limited	Whole-time director	20/10/1999	20/10/1999	-	Active	NO
L17111TN1946PLC003270	Vtm Limited	Director	1/11/1999	1/11/1999	-	Active	NO
U74990TN2010PLC076714	Thiagarajar Telekom Solutions Limited	Director	23/07/2010	23/07/2010	-	Active	NO

Name :

SK.AR.SM. Ramanathan Chettiar

Designation :

Director

Address :

147-A, South Masi Street, Madurai – 625001, Tamilnadu, India

Date of Birth/Age :

10.09.1922

Date of Appointment :

28.06.1969

DIN No.:

00050982

Other Directorship :

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
U27209TN1935PTC002515	Thiagarajar Mills Private Limited	Director	28/06/1969	28/06/1969	-	Active	NO
U17110TN1980PTC008086	Sri Kannattal Mills Private Limited	Director	3/02/1989	3/02/1989	-	Active	NO
U24231TN1997PTC037584	J. Balabai and Company Private Limited	Director	24/02/1997	24/02/1997	-	Active	NO

Name :

Mr. Thannirpalli Rajagopalan Venkatakrishnan

Designation :

Director

Address :

Flat J -3, Swarnakamal, 69 Arcot Road, Saligramam, Chennai – 600093, Tamilnadu, India

Date of Birth/Age :

31.03.1934

Date of Appointment :

20.10.1999

DIN No.:

00044608

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 26.08.2011

Names of Shareholders	No. of Shares
Thirupathy Venkatachalapathy	120
SK. AR. SM. Ramanathan Chettiar	100
Thiru T. Kannan	526390
Thiru T. Kannan HUF A/c	32000
VTM Limited, India	70140
Radha Kannan	154340
K. Thiagarajan	147520
Thiagarajar Leasing Private Limited, India	3800
Uma Kannan	72800
Visalakshi Kannan	72800
Sree Thiagaraja Finance Private Limited, India	50
Sree Devi Karumari Finance Private Limited, India	50
Karumuttu Farms Private Limited, India	50
Tirumagal Finance Private Limited, India	50
Total	1080210

Equity Share Break up (Percentage of Total Equity)

As on 01.06.2011

Category	Percentage
Bodies corporate	6.86
Directors or relatives of Directors	93.13
Others	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Cotton Yarn.

Products :

Item Code No.	Product Description
520710-00	Yarn

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Installed Capacity
Spindles	Kgs.	77664

Particulars	Unit	Actual Production
Yarn	Kgs.	76.91
Cloth (By Others) – Mtrs.	Kgs.	7.04

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· State Bank of India, 6A West Veli Street, Madurai – 625001, Tamilnadu, India

· Standard Chartered Bank, No.19, Rajaji Salai, Chennai – 600001, Tamilnadu, India

· IDBI Bank Limited, LIC Building, No.3, West Marret Street, Madurai – 625001, Tamilnadu, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Term Loans
IDBI Bank – TUF Loan	265.713	375.138
IDBI Bank – Term Loan	180.000	170.000
IDBI Bank – Office Complex	47.905	17.400
Axis Bank - Loan	62.625	104.375
Working Capital Loans
Open Loan on the Hypothecation of cotton, yarn, process stocks and mill stores	214.610	171.014
Total	770.853	837.927
Unsecured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Trade Deposits	0.556	0.576
Interest free Sales Tax Loan	0.313	0.795
Total	0.869	1.371

Banking Relations :	--
Auditors :
Name :	B. Purushottam and Company Chartered Accountants
Address :	III Floor, ‘D’ Pioneer Homes, 23/A, North Boag Road, Chennai – 600017, Tamilnadu, India
PAN.:	AADFB9589N
Enterprises in which Key Management Personnel and their relatives have significant influence :	· VTM Limited · Colour Yarns Limited · Thiagarajar Knitters · Thirumagal Finance Private Limited · Sivakami Textile Traders Private Limited · Paramount Textiles Mills Private Limited · Penguin Garments Private Limited · Samy Auto Works · Guruvayoorappan Investments

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1080210	Equity Shares	Rs.10/- each	Rs.10.802 Millions

Note :

1) 582240 shares of Rs.10/- each allotted as fully paid up by way of Bonus shares by capitalization of Reserves

2) 728000 shares of Rs.10/- each allotted as fully paid up on Amalgamation in the year 2001-02

3) 338880 shares of Rs.10/- each cancelled on Amalgamation in the year 2001-02.

4) 53290 shares of Rs.10/- each cancelled as per scheme of Buyback arrangement in the year 2006-07.

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		10.806	10.806	10.806
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1099.621	1086.487	1183.084
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1110.427	1097.293	1193.890
LOAN FUNDS
1] Secured Loans		770.853	837.927	787.187
2] Unsecured Loans		0.869	1.371	2.200
TOTAL BORROWING		771.722	839.298	789.387
DEFERRED TAX LIABILITIES		111.509	134.568	143.535
TOTAL		1993.658	2071.159	2126.812
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1313.975	1424.424	1474.072
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		4.619	5.635	5.697
DEFERREX TAX ASSETS		0.000	0.000	0.101
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	619.780	454.006	422.749
	Sundry Debtors	35.904	48.197	31.427
	Cash & Bank Balances	29.720	32.585	62.636
	Other Current Assets	0.002	0.002	0.002
	Loans & Advances	134.432	125.598	154.757
Total Current Assets		819.838	660.388	671.571
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	25.091	29.407	24.475
	Other Current Liabilities	107.087	0.083	0.199
	Provisions	12.596	0.000	12.638
Total Current Liabilities		144.774	29.490	37.312
Net Current Assets		675.064	630.898	634.259
MISCELLANEOUS EXPENSES		0.000	10.202	12.683
TOTAL		1993.658	2071.159	2126.812

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1418.400	1289.473	1394.200
		Other Income	17.121	34.605	35.130
		TOTAL	1435.521	1324.078	1429.330
Less	EXPENSES
		Office Expenses
		Administrative Expenses	1220.921	1630.578	1218.230
		Advertising Expenses
		TOTAL	1220.921	1630.578	1218.230
Less	PROFIT/LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		214.600	(306.500)	211.100
Less/ Add	DEPRECIATION/ AMORTISATION		187.400	199.100	139.300
	PROFIT/LOSS BEFORE TAX		27.200	(107.400)	71.800
Less	TAX		1.500	0.000	40.400
Add	Excess Provision of Taxation for earlier year		0.000	10.800	0.000
	PROFIT/LOSS AFTER TAX		25.700	(96.600)	31.400
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		28.300	16.600	1.000
Less	APPROPRIATIONS
		Transfer to General Reserve	5.200	108.300	3.200
		Final Dividend @Rs.10/- per share	10.800	0.000	10.800
		Income Tax on Dividend	1.800	0.000	1.800
	BALANCE CARRIED TO THE B/S		36.200	28.300	16.600
	EARNINGS IN FOREIGN CURRENCY
		FOB value	534.782	607.557	898.565
		E.O. Units (Ex-mill)	89.223	12.188	8.333
	TOTAL EARNINGS		624.005	619.745	906.898
	IMPORTS
		Raw Materials	244.385	326.578	215.958
		Stores & Spares	14.023	9.555	26.019
		Capital Goods	115.888	13.352	156.617
	TOTAL IMPORTS		374.296	349.485	398.594
	Earnings Per Share (Rs.)		23.80	(89.42)	29.07

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.79	7.29	2.19
Net Profit Margin (PBT/Sales)	(%)	1.92	8.33	5.15
Return on Total Assets (PBT/Total Assets}	(%)	1.27	5.15	3.35
Return on Investment (ROI) (PBT/Networth)		0.02	0.09	0.06
Debt Equity Ratio (Total Liability/Networth)		0.83	0.79	0.69
Current Ratio (Current Asset/Current Liability)		5.66	22.39	17.99

LOCAL AGENCY FURTHER INFORMATION

FORM 8

Corporate identity number of the company	U27209TN1935PTC002515
Name of the company	THIAGARAJAR MILLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Kappalur , Madurai – 625008, Tamilnadu, India Email Id : securities@tmills.com
This form is for	Modification of charge
Type of charge	Immovable property Movable property (not being pledge)
Particular of charge holder	State Bank of India, 6A, West Veli Street, Madurai – 625001, Tamilnadu, India Email Id : sbi.04034@sbi.co.in
Nature of instrument creating charge	Reduction of charge amount from 930.000 Millions to 814.000 Millions by letter dated 18.08.2011
Date of instrument Creating the charge	18.08.2011
Amount secured by the charge	Rs.814.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest EPC – as per SBIEGCS linked CRA rating, CC (Hyp) – 2.90% above base rate, TL 3.30% above base rate Terms of repayment As in earlier charge and the Term loan of Rs.117.000 Millions is repayable in 20 quarterly installments of Rs.5.850 Millions starting from 30.06.2013 to 31.03.2018 Margin EPC (RM, SIP, FG) – 10% RM/SIP – 25% Finished Goods – 25% Stores/Spares/Consumables – 50% Receivables (cover period) – 60 days Bank Guarantee – 10% Term Loan/LC(CG) -24.76% Extent and operation of the charge The charge operates as the security for the due repayment by the borrower to State Bank of India of its dues together with interest, cost, expenses and all other monies payable by the borrower to State Bank of India in terms of the said agreement. Other Nil
Short particulars of the property charged (Including location of the property)	Hypothecation of Raw Material, SIP, FG, Stores and spares and receivables with other bank in the multiple banking arrangement. First charge on the assets procured out of TUF Term Loan of Rs.117.000 Millions
Particulars of the present modification	Reduction of charge amount from 930.000 Millions to Rs.814.000 Millions by letter dated 18.08.2011

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Furniture

· Vehicles

· Livestock

· Electrical Equipment

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.49.07
UK Pound	1	Rs.77.42
Euro	1	Rs.67.72

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		53

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.