MIRA INFORM REPORT

Report Date :

31.12.2012

IDENTIFICATION DETAILS

Name :	DATTATREYA TEXTILES PRIVATE LIMITED
Registered Office :	Maruthur Road, Melur Taluk, Therkutheru, Madurai - 625122, Tamil Nadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	20.10.1982
Com. Reg. No.:	18-009662
Capital Investment / Paid-up Capital :	Rs. 3.010 Millions
CIN No.: [Company Identification No.]	U17111TN1982PTC009662
TAN No.: [Tax Deduction & Collection Account No.]	MRID00124F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Yarn, Cloth and Other Fabrics.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (33)

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

Maximum Credit Limit :	USD 600000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The company has incurred some loss from its operations. However, trade relations are decent. Business is active. Payments terms are slow but correct. The company can be considered for business dealings with some coution.

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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	FITCH
Rating	BBB- : Long Term Rating
Rating Explanation	Capacity for payment of financial commitments is considered adequate but adverse business or economic conditions are more likely to impair this capacity.
Date	21.03.2011

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	Maruthur Road, Melur Taluk, Therkutheru, Madurai - 625122, Tamil Nadu, India
Tel. No.:	91-452-2420207
Fax No.:	91-452-2420247
E-Mail :	sales@sundaramtextiles.com shell.madurai@yahoo.co.in

DIRECTORS

As on: 28.09.2012

Name :

Ms Mridula Ramesh

Designation :

Director

Address :

18 Jawahar Road, Madurai – 625002, Tamil Nadu, India

Date of Birth/Age :

08.01.1975

Date of Appointment :

30.10.1998

DIN No.:

00557263

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U85110KA1995PTC019206	T.V.S HERITAGE TOURS PRIVATE LIMITED	Director	09-05-97	09-05-97	-	Strike off	NO
2	U17111TN1982PTC009662	DATTATREYA TEXTILES PRIVATE LIMITED	Director	30-10-98	30-10-98	-	Active	NO
3	U17293TN1998PTC040328	ATHREYA TEXTILES PRIVATE LIMITED	Director	05-03-03	05-03-03	-	Active	NO
4	U17111TN1960PLC004340	SUNDARAM TEXTILES LIMITED	Whole-time director	10-03-06	10-03-06	-	Active	NO
5	U60221TN1946PLC002582	SOUTHERN ROADWAYS LIMITED	Director	03-07-07	03-07-07	-	Active	NO

Name :

Mr. Krishnaswamy Bharathram

Designation :

Director

Address :

18 Jawahar Road, Madurai – 625002, Tamil Nadu, India

Date of Birth/Age :

01.12.1974

Date of Appointment :

20.06.2006

DIN No.:

00557348

Name :

Dr.(Mrs.) Soumini Ramesh

Designation :

Director

Address :

18 Jawahar Road, Madurai – 625002, Tamil Nadu, India

Date of Birth/Age :

19.08.1943

Date of Appointment :

30.10.1998

DIN No.:

00573236

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U85110KA1995PTC019206	T.V.S HERITAGE TOURS PRIVATE LIMITED	Director	17-11-95	17-11-95	-	Strike off	NO
2	U85110KA1995PTC017459	ALAGAR TEXTILES PRIVATE LIMITED	Director	03-10-97	03-10-97	-	Strike off	NO
3	U17111TN1982PTC009662	DATTATREYA TEXTILES PRIVATE LIMITED	Director	30-10-98	30-10-98	-	Active	NO
4	U17111TN1960PLC004340	SUNDARAM TEXTILES LIMITED	Managing director	01-07-07	20-09-00	-	Active	NO
5	U17293TN1998PTC040328	ATHREYA TEXTILES PRIVATE LIMITED	Director	05-03-03	05-03-03	-	Active	NO
6	U74999TN2004PTC052301	AMBUR RESEARCH SERVICES INDIA PRIVATE LIMITED	Director	09-01-04	09-01-04	-	Strike off	NO

Name :

Ms. Mala Ramesh

Designation :

Director

Address :

18 Jawahar Road, Madurai – 625002, Tamil Nadu, India

Date of Birth/Age :

26.07.1969

Date of Appointment :

30.10.1998

DIN No.:

00573260

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U01211TN1982PLC009203	MENAL FARMS LIMITED	Director	30-06-88	30-06-88	-	Active	NO
2	U17111TN1983PTC009905	DATTATREYA FABRICS PRIVATE LIMITED	Director	30-11-88	30-11-88	-	Active	NO
3	U85110KA1995PTC019206	T.V.S HERITAGE TOURS PRIVATE LIMITED	Director	01-06-98	01-06-98	-	Strike off	NO
4	U17111TN1982PTC009662	DATTATREYA TEXTILES PRIVATE LIMITED	Director	30-10-98	30-10-98	-	Active	NO

Name :

Ms. Urmila Ramesh

Designation :

Director

Address :

18 Jawahar Road, Madurai – 625002, Tamil Nadu, India

Date of Birth/Age :

18.05.1967

Date of Appointment :

31.12.1991

DIN No.:

02720031

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17111TN1983PTC009905	DATTATREYA FABRICS PRIVATE LIMITED	Director	30-11-88	30-11-88	-	Active	NO
2	U17111TN1982PTC009662	DATTATREYA TEXTILES PRIVATE LIMITED	Director	31-12-91	31-12-91	-	Active	NO
3	U85110KA1995PTC019206	T.V.S HERITAGE TOURS PRIVATE LIMITED	Director	17-11-95	17-11-95	20-08-10	Strike off	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 28.09.2012

Names of Shareholders	No. of Shares
Sounini Ramesh	150550
Urmila Ramesh	50150
Mala Ramesh	50150
Mridula Ramesh	50150
Total	301000

Equity Share Break up (Percentage of Total Equity)

As on: 28.09.2012

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Yarn, Cloth and Other Fabrics.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Canara Bank, Grand Central Branch, 118 B West Perumal Maistry Street, Madurai - 625001, Tamil Nadu, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Term Loan From Banks	22.976	39.351
a. Secured by Hypothecation of Machineries and Vehicles
b. Terms of Repayment
Repayable in monthly/Quarterly/Annual Installments with the holiday period as per the terms and agreement entered into with the bank
c. There i9s no default in repayment of Term Loan and Interest as on the Balancesheet Date
d. No Loans have been guaranteed by directors or others
Loans and Advance from Banks Cash Credit and Export Packing Credit from Canara Bank Secured be hypothecation of cotton yarn, process stock and book debt and securities of land and building and plant and machinery	75.666	113.330
Total	98.642	152.681
Unsecured Loan	As on 31.03.2012	As on 31.03.2011
Loans from Related Parties	42.877	38.446
Trade Exports	0.650	0.650
Total	43.527	39.096

Banking Relations :	--
Auditors :
Name :	Somasundaram and Rajamani Chartered Accountants
Address :	Plot No.354, Anna Nagar, Maduri - 625020, Tamil Nadu, India
PAN No.:	AAJFS3185D

CAPITAL STRUCTURE

As on: 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
350000	Equity Shares	Rs.10/- each	Rs. 3.500 Millions
10000	Preference Shares	Rs.100/- each	Rs. 1.000 Millions
	Total		Rs. 4.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
301000	Equity Shares	Rs.10/- each	Rs. 3.010 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		3.010	3.010	3.010
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		162.696	166.409	151.122
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		165.706	169.419	154.132
LOAN FUNDS
1] Secured Loans		98.642	152.681	158.302
2] Unsecured Loans		43.527	39.096	34.862
TOTAL BORROWING		142.169	191.777	193.164
DEFERRED TAX LIABILITIES		44.567	49.915	49.129
TOTAL		352.442	411.111	396.425
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		247.231	267.807	253.577
Capital work-in-progress		0.000	0.000	16.999
INVESTMENT		0.904	0.904	0.918
DEFERREX TAX ASSETS		0.000	0.000	0.000
OTHER NON CURRENT ASSETS		0.035	0.031	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	96.819	144.499	126.709
	Sundry Debtors	23.002	33.756	16.256
	Cash & Bank Balances	0.906	1.082	2.408
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	18.613	17.322	27.846
Total Current Assets		139.340	196.659	173.219
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	20.774	20.888	28.756
	Other Current Liabilities	11.947	26.219	0.286
	Provisions	2.347	7.183	19.246
Total Current Liabilities		35.068	54.290	48.288
Net Current Assets		104.272	142.369	124.931
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		352.442	411.111	396.425

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	NA	NA	NA
		Other Income	NA	NA	NA
		TOTAL	NA	336.490	296.405
	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	276.545	267.251
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		26.982	59.945	29.154
Less	FINANCIAL EXPENSES		15.752	15.396	12.561
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		11.230	44.549	41.715
Add/ Less	DEPRECIATION/ AMORTISATION		21.384	20.986	20.250
	PROFIT/ (LOSS) BEFORE TAX		(10.154)	23.563	21.465
Less	TAX		NA	5.482	7.008
	PROFIT AFTER TAX		NA	18.081	14.457
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	15.224	22.339	8.015
	TOTAL EARNINGS		15.224	22.339	8.015
	IMPORTS
		Stores & Spares	0.259	0.907	1.440
		Capital Goods	0.000	10.422	11.311
	TOTAL IMPORTS		0.259	11.329	12.751
	Earnings Per Share (Rs.)		NA	60.07	48.03

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	5.37	4.87
Return on Total Assets (PBT/Total Assets}	(%)	(2.63)	5.07	5.03
Return on Investment (ROI) (PBT/Networth)		(0.06)	0.14	0.14
Debt Equity Ratio (Total Liability/Networth)		1.07	1.45	1.57
Current Ratio (Current Asset/Current Liability)		3.97	3.62	3.58

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last two years	Yes
12]	Profitability for last two years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17111TN1982PTC009662
Name of the company	DATTATREYA TEXTILES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Maruthur Road, Melur Taluk, Therkutheru, Madurai - 625122, Tamil Nadu, India shell.madurai@yahoo.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90288758
Type of charge	· Immovable property · Book debts · Movable property (not being pledge
Particular of charge holder	Canara Bank, Grand Central Branch, 118 B West Perumal Maistry Street, Madurai - 625001, Tamil Nadu, India mdu1008@canbank.co.in
Nature of instrument creating charge	Supplemental Common Hypothecation Agreement
Date of instrument Creating the charge	30.06.2010
Amount secured by the charge	Rs. 360.000 Millions
Brief of the principal terms and conditions and extent and operation of the charge	Margin OCC - 25% PC/PCFC - 15% FDB/FBE/BRD - NIL ILC/FLC/BG - 10% Term Loan (Fresh) - 20.13% Extent and operation of the charge The charge operates as exclusive first charge in favour of the bank as security for overall limit of Rs. 360.000 Millions together with interest, cost and charges that may accrue and/or debited to the company's accounts from time to time. Others 1. Period of PC - There is no change in the existing sanction stipulations 2. Cover period for Book Debts - There is no change in the existing sanction stipulations 3. Usance: Maximum 180 days for FBE and 90 days for BE 4. ILC/FLC(DA/DP)/ Buyer's Credit - (i) Period maximum 120 days (ii) Usance not to exceed 180 days 5. BG: Period : Maximum 5 yrs to 10 yrs; (10 yrs. in favour of Customs Authorities) 6. TL of Rs.15.400 Millions - Repayment Holiday: NIL
Short particulars of the property or assets charged (including complete address and location of the property)	Hypothecation of stocks, book debts, plant and machineries, other movable fixed assets and Equitable Mortgage on Company's Immovable Properties
Date of last modification prior to the present modification	26.06.2010
Particulars of the present modification	OL remains unchanged at Rs. 360.000 Millions. Extension of Hypothecation of present and future stocks, book debts, Machineries and other Movable Assets and Creation of Hypothecation on New Machineries procured out of Fresh TL VII and VIII as Security on EXCLUSIVE FIRST CHARGE basis for the Overall Limit of Rs. 360.000Lacs, together with interest, cost and charges that may accrue and/or debited to the Company's accounts from time to time. Other terms and conditions remain unaltered.

FIXED ASSETS:

• Land
• Building
• Plant and Machinery
• Furniture and Fixture and Fitting
• Vehicles

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 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 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. 54.85
UK Pound	1	Rs. 88.40
Euro	1	Rs. 72.63

INFORMATION DETAILS

Report Prepared by :

UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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		33

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.