MIRA INFORM REPORT

Report Date :

05.04.2012

IDENTIFICATION DETAILS

Name :	AMARAVATHI TEXTILES PRIVATE LIMITED
Registered Office :	33-263, Kandimalla Road, Pandari Puram, Chilaka Luripet-522616, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.08.1983
Com. Reg. No.:	01-004085
Capital Investment / Paid-up Capital :	Rs.16.000 Millions
CIN No.: [Company Identification No.]	U18100AP1983PTC004085
TAN No.: [Tax Deduction & Collection Account No.]	HYDS05761A
PAN No.: [Permanent Account No.]	AABCA8778P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Cotton Yarn.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 3100000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Financial position of the company appears to be 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 :	33-263, Kandimalla Road, Pandari Puram, Chilaka Luripet-522616, Andhra Pradesh, India
Tel. No.:	91-8647-254630
Fax No.:	91-8404-271235
E-Mail :	atplmrt@yahoo.com
Corporate Office :	9D-5, Ramakrishnapuram, Karur-639001, Tamilnadu, India
Tel. No.:	91-4324-230620/230808
Fax No.:	91-4324-230005/230811
E-Mail :	amaravathi@amaravathi.net
Factory :	Martur Mandal, Pakasam-523301, Andhra Pradesh, India
Tel No.:	91-8404-271278/271215
Fax No.:	91-8404-271235
Gurgaon Office :	116, Second Floor, Udyog Vihar, Phase 4, Gurgaon, Haryana, India
Tel. No.:	91-124-4106213

DIRECTORS

As on 26.09.2011

Name :

Kandimalla Srinivasa Rao

Designation :

Director

Address :

3-1-2, Stambalagaravu, Guntur-522006, Andhra Pradesh, India

Date of Birth/Age :

01.07.1942

Date of Appointment :

20.08.1983

Din No.:

00381090

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	L28990AP1978PLC002260	JOCIL LIMITED	Director	01-11-80	01-11-80	-	Active	NO
2	U18100AP1982PTC003448	SREE ANANTHA LAKSHMI TEXTILES PRIVATE LIMITED	Director	31-03-82	31-03-82	-	Active	NO
3	U18100AP1983PTC004085	AMARAVATHI TEXTILES PRIVATE LIMITED	Director	20-08-83	20-08-83	-	Active	NO
4	U01222AP1992PTC013950	VIJETHA HATCHERIES PRIVATE LIMITED	Director	06-03-92	06-03-92	06-11-10	Active	NO
5	U17120AP1993PTC015528	GEETHA COTTON MILLS PRIVATE LIMITED	Managing director	16-05-94	16-05-94	-	Active	NO
6	U01122AP1995PTC019503	GREEN THUMB AGRO PRIVATE LIMITED	Managing director	21-02-95	21-02-95	-	Active	NO
7	U40109AP2001PTC038002	SWATI BIOENERGY PRIVATE LIMITED	Managing director	01-11-01	01-11-01	-	Strike off	NO
8	U16000AP2001PTC038003	PRAVEENA TOBACCO'S PRIVATE LIMITED	Managing director	01-11-01	01-11-01	-	Active	NO

Name :

Lakshmi Samrajyam Kandimalla

Designation :

Director

Address :

3-1-2, Stambalagaravu, Guntur-522006, Andhra Pradesh, India

Date of Birth/Age :

14.12.1945

Date of Appointment :

20.03.2010

Din No.:

00598578

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	U17120AP1993PTC015528	GEETHA COTTON MILLS PRIVATE LIMITED	Director	20-09-99	20-09-99	Active	NO
2	U18100AP1983PTC004085	AMARAVATHI TEXTILES PRIVATE LIMITED	Additional director	20-03-10	20-03-10	Active	NO

Name :

Kavuri Geetha

Designation :

Director

Address :

3-1-2, Stambalagaravu, Guntur-522006, Andhra Pradesh, India

Date of Birth/Age :

27.04.1972

Date of Appointment :

30.09.1997

Din No.:

00735969

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	U01122AP1995PTC019503	GREEN THUMB AGRO PRIVATE LIMITED	Director	18-01-97	18-01-97	Active	NO
2	U18100AP1983PTC004085	AMARAVATHI TEXTILES PRIVATE LIMITED	Director	30-09-97	30-09-97	Active	NO
3	U67120AP1998PTC029664	KAVURI HOLDINGS PRIVATE LIMITED	Director	25-06-98	25-06-98	Active	NO
4	U45204DL2009PTC191052	MG INFRA WORKS PRIVATE LIMITED	Director	09-06-09	09-06-09	Active	NO
5	U14220DL2009PTC196848	Sun Pro Mining Private Limited	Director	12-12-09	12-12-09	Active	NO

Name :

Kandimalla Bhaskar

Designation :

Director

Address :

3-1-2, Stambalagaravu, Guntur-522006, Andhra Pradesh, India

Date of Birth/Age :

27.06.1963

Date of Appointment :

05.05.2005

Din No.:

01778520

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 26.09.2011

Names of Shareholders	No. of Shares
Kandimalla Srinivasa Rao	57500
Kandimalla Bhaskar	245000
Gita Cotton Trading Company, India	250000
Kandimalla Rajarajeswari	22500
Dommalapati Mallaiah	40000
Kavuri Geetha	433050
Green Thumb Agro Private Limited, India	500000
Kandimalla Nageswaramma	34500
Lakshmi Samrajyam Kandimalla	17450
Total	1600000

As on 26.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	99.97
Other top fifty shareholders	0.03
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cotton Yarn.

Products :

PRODUCT DESCRIPTION	ITEM CODE
Cotton Yarn	520710.00

PRODUCTION STATUS [AS ON 31.03.2010]

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Spindles	Kgs.	144000	117312	4815215
Rotors	Kgs.	2144	1488	1527660

NOTE: The installed capacities are as per certification given by the management.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of Hyderabad, Kothapet Branch, Guntur-522001, Andhra Pradesh, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Rupee term loans	1413.104	1302.291
Foreign currency loans	0.000	159.530
Working capital loans banks	448.736	175.195
Working capital loans other	5.547	6.414
Total	1867.387	1643.430
Unsecured Loan
Loans directors	57.757	66.300
Other debts	42.054	13.167
Total	99.811	79.467

Banking Relations :	--
Auditors :
Name :	Brahmayya and Company Chartered Accountants
Address :	10-3-21, 3^rd Lane, Sambasivapet, Guntur, Andhra Pradesh, India
Pan No.:	ACPPK4838D

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1600000	Equity Shares	Rs.10/- each	Rs.16.000 Millions
10000	Preferences Shares	Rs.100/- each	Rs.1.000 Million
	Total		Rs.17.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1600000	Equity Shares	Rs.10/- each	Rs.16.000 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		16.000	16.000	16.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		771.718	573.773	504.905
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		787.718	589.773	520.905
LOAN FUNDS
1] Secured Loans		1867.387	1643.430	1414.828
2] Unsecured Loans		99.811	79.467	78.394
TOTAL BORROWING		1967.198	1722.897	1493.222
DEFERRED TAX LIABILITIES		217.283	182.474	143.038
TOTAL		2972.199	2495.144	2157.165
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1983.083	1713.001	1445.303
Capital work-in-progress		57.888	6.282	43.691
INVESTMENT		0.200	0.200	0.200
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	753.854	611.608	493.097
	Sundry Debtors	99.847	104.557	67.914
	Cash & Bank Balances	33.689	60.247	51.253
	Other Current Assets	1.253	1.251	0.886
	Loans & Advances	383.525	240.223	211.964
Total Current Assets		1272.168	1017.886	825.114
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	220.931	191.826	128.767
	Other Current Liabilities	10.709	1.206	1.274
	Provisions	109.500	49.193	27.102
Total Current Liabilities		341.140	242.225	157.143
Net Current Assets		931.028	775.661	667.971
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2972.199	2495.144	2157.165

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2174.385	1243.757	889.319
		Other Income	67.754	99.786	83.445
		TOTAL (A)	2242.139	1343.543	972.764
Less	EXPENSES
		Raw Materials Consumed		616.975	402.859
		Payments and Benefits to Employees		36.501	30.403
		Manufacturing, Selling, Administrative and Other Expenses	1643.453	302.442	219.295
		Taxes and Licenses		1.727	2.234
		Decrease of Stocks		13.382	9.833
		TOTAL (B)	1643.453	971.027	664.624
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		598.686	372.516	308.140
Less	FINANCIAL EXPENSES (D)		204.549	175.463	152.426
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		394.137	197.053	155.714
Less/ Add	DEPRECIATION/ AMORTISATION (F)		103.278	85.484	73.475
	PROFIT BEFORE TAX (E-F) (G)		290.859	111.569	82.239
Less	TAX (H)		92.914	42.701	29.289
	PROFIT AFTER TAX (G-H) (I)		197.945	68.868	52.950
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		410.821	341.953	289.003
	BALANCE CARRIED TO THE B/S		608.766	410.821	341.953
	IMPORTS
		Raw Materials	NA	0.000	18.104
		Stores & Spares	NA	0.000	0.121
		Capital Goods	NA	108.865	79.350
	TOTAL IMPORTS		NA	108.865	97.575
	Earnings Per Share (Rs.)		123.72	43.04	33.09

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	8.29	5.05	5.44
Net Profit Margin (PBT/Sales)	(%)	13.37	8.97	9.25
Return on Total Assets (PBT/Total Assets}	(%)	8.94	4.09	3.62
Return on Investment (ROI) (PBT/Networth)		0.37	0.19	0.15
Debt Equity Ratio (Total Liability/Networth)		2.93	3.33	3.17
Current Ratio (Current Asset/Current Liability)		3.73	4.20	5.25

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

During the year the production of Cotton yarn was 92,74,703 Kgs. Against 63,42,875 Kgs. in the previous year ended 31^st March, 2010. The Sales Volume of yarn during the year was 90,29,938 Kgs. against 64,94,170 Kgs. in the previous year ended 31^st March, 2010.

EXPANSION:

The capacities of the spindles were increased from 1,26,240 to 1,49,568 during the year. The Company is also under proposal to expand the spindles capacity further in the next year since there are good prospects for the growth of the Company and also demand for the cotton yarn in the coming years.

FIXED ASSETS:

· Land

· Non Factory Building

· Factory Building

· Plant and Machinery

· Electrical Installation

· Furniture and Fixtures

· Laboratory Equipments

· Vehicles

· Library

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.51.05
UK Pound	1	Rs.81.09
Euro	1	Rs.67.39

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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.