MIRA INFORM REPORT

Report Date :

04.04.2012

IDENTIFICATION DETAILS

Name :	ARUN TEXTILES PRIVATE LIMITED
Registered Office :	80, Perumal Koil Streel, Tirupur-641604, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.03.1989
Com. Reg. No.:	18-002372
Capital Investment / Paid-up Capital :	Rs.22.500 Millions
CIN No.: [Company Identification No.]	U17115TZ1989PTC002372
TAN No.: [Tax Deduction & Collection Account No.]	CHBA04029E
PAN No.: [Permanent Account No.]	AABCA8982D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Cotton Yarn and Hosiery Cloth.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 1900000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track. General 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 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 – 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 :	80, Perumal Koil Streel, Tirupur-641604, Tamilnadu, India
Tel. No.:	91-421-2241365/2242537
Fax No.:	91-421-2248686
E-Mail :	aruntex@vsnl.com
Factory :	S NF No. 1132, Thasampalsayam, Polavakkalipalayam, P O Godich 638476, India

DIRECTORS

AS ON 23.09.2011

Name :

Subbannagounder Palaniswamy

Designation :

Managing Director

Address :

D No. 10, III Street, Karuvampalayam Extension, Tirupur-641604, Tamilnadu, India

Date of Birth/Age :

01.02.1954

Date of Appointment :

11.05.2005

Din No.:

01116283

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	U17111TZ2003PTC010458	ARUNKARTHIK TEXTILES PRIVATE LIMITED	Director	29-01-03	29-01-03	15-12-11	Active	NO
2	U17115TZ1989PTC002372	ARUN TEXTILES PRIVATE LIMITED	Managing director	11-05-05	11-05-05	-	Active	NO

Name :

A. Deivanai

Designation :

Director

Address :

3, Karuvampalayam, ABT Road, Tirupur-641604, Tamilnadu, India

Date of Birth/Age :

13.09.1950

Date of Appointment :

03.03.1989

Din No.:

02555679

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	U17111TZ2003PTC010458	ARUNKARTHIK TEXTILES PRIVATE LIMITED	Director	29-01-03	29-01-03	Active	NO
2	U17115TZ1989PTC002372	ARUN TEXTILES PRIVATE LIMITED	Director	11-05-05	11-05-05	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 23.09.2011

Names of Shareholders	No. of Shares
Subbannagounder Palaniswamy	75000
A. Deivanai	28000
S. Kavitha Senthail Kumar	61000
C. Sujatha Carthic	61000
Total	225000

AS ON 23.09.2011

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

BUSINESS DETAILS

Line of Business :

Manufacturer of Cotton Yarn and Hosiery Cloth.

Products :

PRODUCT DESCRIPTION	ITEM CODE
Cotton Yarn/Hosiery Cloth	520710.00

PRODUCTION STATUS [AS ON 31.03.2011]

Installed Capacity	36000 Spindles
Windmill Division	7250 KW

PRODUCTION:

Particular	Actual Production [Qty Kgs. in Lacs]
Yarn	2612241

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India, Specialized Commercial Branch, Old NO. 24, New No. 44, Stanes Road, 4^th Street, Tirupur-641602, Tamilnadu, India

· Karnataka Bank Limited

· Indian Bank

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Term Loan:
Karnataka Bank Limited, Tirupur Term Loan I	12.725	18.200
Karnataka Bank Limited, Tirupur Term Loan IV	31.690	36.985
The Karnataka Bank Term Loan V	37.281	0.000
Indian Bank Wind Mill Term Loan III	41.520	50.900
State Bank of India, Commercial Branch Term Loan III [The above credit facilities are secured by hypothecation of plant and machinery acquired out of the term loan and mortgage of land and building of the company and hypothecation of all fixed assets of the company on pari passu basis.]	2.242	6.442
Interest Accrued On Term Loan
Karnataka Bank Term Loan I	0.135	0.192
Karnataka Bank Term Loan IV	0.350	0.387
The Karnataka Bank Term Loan V	0.358	0.000
Indian Bank Term Loan III	0.470	0.508
State Bank of India Term Loan III	0.031	0.071
Working Capital Loan
State Bank of India CC, Tirupur	96.264	66.931
State Bank of India S LC, Tirupur	20.107	15.100
State Bank of India ADHOC Limit, Tirupur	0.000	30.136
The Karnataka Bank Limited, Tirupur	43.846	16.518
The Karnataka Bank Limited ADHOC, Tirupur	0.000	20.000
Indian Bank, Tirupur	60.178	50.158
Indian Bank Gobi [Secured by hypothecation of stock of raw material, work in progress, finished goods, and stores and spares debtors, receivable of the company] [All the above loans are secured by personal guarantee of all the directors of the company under pari passu agreement]	0.000	0.113
Total	347.197	312.641
Unsecured Loan
Interest Free Sales Tax Scheme From Government of Tamilnadu	37.687	46.756
Total	37.687	46.756

Banking Relations :	--
Auditors :
Name :	T. Kumaaravelu Chartered Accountants
Address :	10, Doctors Colony, Dr. Radhakrishnan Road, Gandhipuram, Coimbatore-641012, Tamilnadu, India
Pan No.:	AEKPK0665F

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
225000	Equity Shares	Rs.100/- each	Rs.22.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
225000	Equity Shares	Rs.100/- each	Rs.22.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		22.500	22.500	22.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		458.355	395.149	347.965
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		480.855	417.649	370.465
LOAN FUNDS
1] Secured Loans		347.197	312.641	331.948
2] Unsecured Loans		37.687	46.756	55.423
TOTAL BORROWING		384.884	359.397	387.371
DEFERRED TAX LIABILITIES		23.862	34.557	39.377
TOTAL		889.601	811.603	797.213
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		389.531	360.308	425.355
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	279.146	228.486	178.171
	Sundry Debtors	66.063	47.831	47.928
	Cash & Bank Balances	78.704	44.640	7.887
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	214.309	182.760	190.130
Total Current Assets		638.222	503.717	424.116
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	108.166	36.270	36.197
	Other Current Liabilities	10.072	11.320	9.262
	Provisions	19.914	4.832	6.799
Total Current Liabilities		138.152	52.422	52.258
Net Current Assets		500.070	451.295	371.858
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		889.601	811.603	797.213

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	734.625	560.329	545.973
		Other Income	108.080	NA	NA
		TOTAL (A)	842.705	NA	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses	674.977	NA	NA
		Advertising Expenses
		TOTAL (B)	674.977	NA	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		167.728	154.428	157.622
Less	FINANCIAL EXPENSES (D)		26.663	32.935	29.870
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		141.065	121.493	127.752
Less/ Add	DEPRECIATION/ AMORTISATION (F)		68.641	73.815	69.145
	PROFIT BEFORE TAX (E-F) (G)		72.424	47.678	58.607
Less	TAX (H)		19.914	5.312	6.799
	PROFIT AFTER TAX (G-H) (I)		52.510	42.366	51.808
	Earnings Per Share (Rs.)		281	210	245

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.23	NA	NA
Net Profit Margin (PBT/Sales)	(%)	9.86	8.51	10.73
Return on Total Assets (PBT/Total Assets}	(%)	7.05	5.52	6.90
Return on Investment (ROI) (PBT/Networth)		0.15	0.11	0.16
Debt Equity Ratio (Total Liability/Networth)		1.09	0.99	1.19
Current Ratio (Current Asset/Current Liability)		4.62	9.61	8.12

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL RESULTS:

During the year, the company has achieved a sales turnover of Rs.734.625 millions and has earned a net profit of Rs.72.424 millions. The company windmill divisions have generated 14699937 units. Despite the recessionary trend, the company maintained and improved its performances by manufacturing the compact yarn, the value added product which has very good reception in the market.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Creation of charge
Corporate identity number of the company	U17115TZ1989PTC002372
Name of the company	ARUN TEXTILES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	80, Perumal Koil Streel, Tirupur-641604, Tamilnadu, India
Type of charge	Book Debts Immovable Property Others
Particular of charge holder	State Bank of India, Specialized Commercial Branch, Old NO. 24, New No. 44, Stanes Road, 4^th Street, Tirupur-641602, Tamilnadu, India
Email	sbi.04201@sbi.co.in
Nature of description of the instrument creating or modifying the charge	1.Form CF.1 Working Capital Consortium Agreement 2.Form CF.2 Joint Deed of Hypothecation 3.Form CF.3 Inter Se Agreement between State Bank India, Indian Bank and The Karnataka Bank 4.Form CF.8 Letter of Authority of Lead Bank
Date of instrument Creating the charge	30.11.2011
Amount secured by the charge	Rs.240.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 4.75 %. Above B R ( Present effective rate 14.75 % ) Terms of Repayment The Working capital limit is repayable on demand, The other loans areas per the sanctioned repayment schedules. Margin 1. Raw materials / Finished goods - 25% 2. Stock in Progress - 40% 3. Stores / Spares / Consumable - 50% 4. Receivables ( cover period in 60days ) - 50% ( 60 days) 5. LC - ( WC) - 10% Extent and Operation of the charge The Charges operates as Security for all liabilities in respect of the above Loan Including Cost, Interest, Compounded Interest Liquidated Damages, Charges and other Expenses and all the Monies Due to the Bank. The working capital limits are pari passu basis - Joint Holders of State Bank of India, Commercial Branch, Tirupur,[Rs.130.000 millions] The Karnataka Bank Limited.,[KBL- Rs.40.000 Millions] and Indian Bank ,Tirupur [IB-Rs.70.000 Millions]
Short particulars of the property charged	Hypothecation First Charge on the entire current assets of the company VIZ Raw material, SIP, Finished Goods, Stores and Receivables and other current assets on pari passu basis with SBI, KBL and IB LC - Documents of title too goods /merchandise covered under LC and fist pari passu charge on the current assets of the company as stipulated for CC [Hypothecation] facility

FIXED ASSETS:

· Land and Development

· Building

· Plant and Machinery

· Furniture and Fittings

· Motor Vehicles

· Office Equipments

· Land Wind Mill

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.50.56
UK Pound	1	Rs.81.05
Euro	1	Rs.67.49

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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		52

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.