MIRA INFORM REPORT

Report Date :

17.07.2012

IDENTIFICATION DETAILS

Name :	M.P. SHAN TEX PRIVATE LIMITED
Registered Office :	S.F. No.145/1A/A, Parappalayam Road, Near Amman Kovil, Mannarai Post, Tirupur-641607, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	02.04.2008
Com. Reg. No.:	18-014353
Capital Investment / Paid-up Capital :	Rs. 230.000 Millions
CIN No.: [Company Identification No.]	U17111TZ2008PTC014353
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Dyed and knitted fabric
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 1300000
Status :	Moderate
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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 :	S.F. No.145/1A/A, Parappalayam Road, Near Amman Kovil, Mannarai Post, Tirupur-641607, Tamilnadu, India
Tel. No.:	91-421-2222492 / 2222162 / 2222351 / 2223591 / 2221605
Fax No.:	91-421-2221896
E-Mail :	mpshan@satyam.net.in info@mpshan.in
Website :	www.mpshan.in
Processing Division / Branch Office :	Plot No.: E6 and G10, SIPCOT Industrial Growth Centre, SIPCOT Main Road, P. V. Palayam, Perundurai-638 052, India
Tel. No.:	91-4294-309993 / 309994
Garment Division :	SJ No.175/1, 2 Vanjipalayam Road, Kaniyam Poondi, Tirupur-641663, Tamilnadu, India
Tel. No.:	91-421-2344738 / 2910478
Fax No.:	91-421-2344728
Sri Lanka Office :	Spathodia Residencies, 109-7/1, Havlock Road, Colombo-04, Sri Lanka
Tel. No.:	11-2590225

DIRECTORS

AS ON 23.07.2011

Name :	Mr. Palanisamy Umashankar
Designation :	Managing Director
Address :	Old No.33, New No.10, Kongu Nagar Extension, 1^st street, Tirupur-641607, Tamilnadu, India
Date of Birth/Age :	20.10.1966
Date of Appointment :	02.04.2008
DIN No.:	00717252

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	Company/ LLP Status	Defaulting status
1	U17111TZ2008PTC014353	M.P.SHAN TEX PRIVATE LIMITED	Managing director	02/04/2008	02/04/2008	Active	NO
2	U18109TN2010PTC075592	KAVAI PROCESSORS PRIVATE LIMITED	Managing director	06/05/2010	06/05/2010	Active	NO
3	U17200TN2011PTC082645	M.P.SHAN INDUSTRIES PRIVATE LIMITED	Managing director	10/10/2011	10/10/2011	Active	NO
4	U17121TZ2005PTC012400	SAFFIRE COLOURS PRIVATE LIMITED	Managing director	30/11/2011	30/11/2011	Active	NO
5	U18109TN2012PTC084568	M.P.SHAN TEX CLOTHINGS PRIVATE LIMITED	Managing director	21/02/2012	21/02/2012	Active	NO

Name :	Mr. Umasankar Suganthi
Designation :	Whole Time Director
Address :	Old No.33, New No.10, Kongu Nagar Extension, 1^st street, Tirupur-641607, Tamilnadu, India
Date of Birth/Age :	09.12.1970
Date of Appointment :	02.04.2008
DIN No.:	01021059

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	Company/ LLP Status	Defaulting status
1	U17111TZ2008PTC014353	M.P.SHAN TEX PRIVATE LIMITED	Whole-time director	02/04/2008	02/04/2008	Active	NO
2	U18109TN2012PTC084568	M.P.SHAN TEX CLOTHINGS PRIVATE LIMITED	Director	21/02/2012	21/02/2012	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 23.07.2011

Names of Shareholders	No. of Shares
Palanisamy Umashankar	20625000
Umasankar Suganthi	2325000
K Palaniswami	10000
P Mohana Palaniswami	10000
V Sekar	10000
S. Uma Maheshwari	10000
S Preethi	10000
TOTAL	23000000

AS ON 30.03.2012

Names of Allottee	No. of Shares
Palanisamy Umashankar	1500000
Umasankar Suganthi	500000
TOTAL	2000000

AS ON 23.07.2011

Equity Shares Break Up	Percentage of Holding
Directors or relatives of Directors	100.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Dyed and knitted fabric

Products :

ITC CODE	PRODUCTS
6019100	Dyed Hostery Fabric

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India, 44, Stanes Road, 4^th Street, Tiruppur-641602, Tamilnadu, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Rupee term loans secured
Rupee term loans banks secured	319.772	125.772
Working capital loans secured
Working capital loans banks secured	525.190	328.100
Total	844.962	453.872
Notes: (A) 1. Term Loan have been availed by the hypothecation of plant and machinery and mortgate of a) Land and Building at No. 335/155 and154, BSS Road, Uthukuli Main Rd, Tirupur. b) No. 24/18A, Tatabad II St, Raju Naidu Main Rd. c) Land and House building at No. 10 (1) / 33 A, 33B Kongunagar Extension 1st, Tirupur, d) Land and company building at S.F. No. 145/1A, Mannarai Village, Near Amman Koil, Parappalayam Road, Uthukuli Road, Tirupur and e) Vacant site SF Nl. 424/2, Vadavalli village, Coimbatore. (B) 1. Wroking capital loan has been availed by hypothecation of Rawmaterials, Work-in-progress, finished goods, and consumable stores 2. Factory Land and Building at Plot No. E6 and G10, F20 Sipcot Industries Growth Centre, P.V. Palayam, Perundurai.
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Loans directors unsecured	62.740	29.600
Hire purchase installment payable unsecured	3.890	3.530
Total	66.630	33.130

Banking Relations :	--
Auditors :
Name :	Ravichandran S S Chartered Accountant
Address :	24, Ganga Nagar, 1^st Street, 2^nd Floor, Avanshi Road, Tirupur-641602, Tamilnadu, India
PAN No.:	AEHPR2861R
Associates :	· M.P. Shan Tex Clothing’s · Shwethra Trading Inc. · U.S. Fabrics · Yogesh Trading Company · Knitting Textile Machinery Works · Venkateshwara Tex · Yogesh Traders · Yogesh Soft Bag Manufacturers · Kavai Processors (Private) Limited CIN No.: - U18109TN2010PTC075592

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs. 250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
23000000	Equity Shares	Rs.10/- each	Rs. 230.000 Millions

AS ON 23.07.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
31000000	Equity Shares	Rs.10/- each	Rs. 310.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs. 250.000 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		230.000	210.000	210.000
2] Share Application Money		20.000	0.000	0.000
3] Reserves & Surplus		95.802	35.509	18.672
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		345.802	245.509	228.672
LOAN FUNDS
1] Secured Loans		844.962	453.872	369.239
2] Unsecured Loans		66.630	33.130	20.388
TOTAL BORROWING		911.592	487.002	389.627
DEFERRED TAX LIABILITIES		13.442	8.826	5.095
TOTAL		1270.836	741.337	623.394
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		432.258	261.095	270.180
Capital work-in-progress		114.899	2.005	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	536.029	372.008	253.230
	Sundry Debtors	246.837	196.881	135.285
	Cash & Bank Balances	20.911	19.379	8.089
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	49.386	17.791	15.628
Total Current Assets		853.163	606.059	412.232
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	79.383	113.135	58.621
	Other Current Liabilities	35.634	9.589	0.000
	Provisions	14.922	5.781	1.308
Total Current Liabilities		129.939	128.505	59.929
Net Current Assets		723.224	477.554	352.303
MISCELLANEOUS EXPENSES		0.455	0.683	0.911
TOTAL		1270.836	741.337	623.394

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income from Operations	1112.800	820.100	676.693
		Other Income	NA	NA	NA
		TOTAL (A)	NA	NA	NA
Less	EXPENSES
		Office Expenses	NA	NA	NA
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	NA	NA	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		142.600	96.500	71.050
Less	FINANCIAL EXPENSES (D)		66.700	46.800	41.201
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		75.900	49.700	29.849
Less/ Add	DEPRECIATION/ AMORTISATION (F)		28.800	24.600	19.669
	PROFIT BEFORE TAX (E-F) (G)		47.100	25.100	10.180
Less	TAX (H)		(1.200)	8.200	6.403
	PROFIT AFTER TAX (G-H) (I)		48.300	16.900	3.777
	EARNINGS IN FOREIGN CURRENCY		11.593	17.864	14.209
	IMPORTS VALUE		68.480	9.019	33.780
	Earnings Per Share (Rs.)		2.10	0.80	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Net Profit Margin (PBT/Sales)	(%)	4.23	3.06	1.50
Return on Total Assets (PBT/Total Assets}	(%)	3.66	2.89	1.49
Return on Investment (ROI) (PBT/Networth)		0.14	0.10	0.04
Debt Equity Ratio (Total Liability/Networth)		3.05	2.54	1.99
Current Ratio (Current Asset/Current Liability)		6.57	4.72	6.88

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1. Year of Establishment	Yes
2. Locality of the firm	Yes
3. Constructions 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 three years	Yes
12. Profitability for last three 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	Yes
17. Major suppliers	No
18. Major customers	No
19. Payments terms	No
20. Export / Import details	Yes
21. Market information	------
22. Litigations that the firm / promoter involved	------
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

REVIEW OF PERFORMANCE

The company has achieved a sales turnover of Rs. 1112.800 Millions during the year, as against Rs. 820.100 Millions of the previous year 2009-10, recording a 35.70% growth. During the year the Company has made Profit After Tax of Rs. 48.300 Millions, as against Rs. 16.900 Millions of the previous year 2009-10.

The Company performance is laudable amongst various factors which are adverse to the textile industry in particular, such as spiraling increase in cost of Raw Material viz., Yarn Dyes and Chemicals increased cost incurrence for power stringent compliance measures by Tamilnadu Pollution Control Board.

During the Second Half Year ending almost all the Bleaching and Dyeing units in and around Tirupur were compulsorily closed down by the order of High court Chennai. However, the company has been able to prove its technical and Quality control compliances to the TNPCB, and is functioning with pride. The Company envisaged the above situation much earlier and has seized the opportunity by going in for expansion project to increase its production capacity and to operate on much more profitable lines. Considering the above they are very optimistic that the company will come out with much more impressive results.

FINANCE

The Company working capital limit has been effectively utilized during the year. The Company has also been prompt in the repayment of term loans. In view of the future expansion and to augment long-term resources and to maintain comfortable working capital position, the directors have decided not to recommend any dividend for the year.

FORM 8

Corporate identity number of the company	U17111TZ2008PTC014353
Name of the company	M.P.SHAN TEX PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	S.J. No.145/1A/A, Parappalayam Road, Near Amman Kovil, Mannarai Post, Tirupur-641607, Tamilnadu, India
This form is for	Modification of charge
Charge identification number of the charge to be modified	10117435
Type of charge	· Immovable property · Book debts · Movable property (not being pledge)
Particular of charge holder	State Bank of India, 44, Stanes Road, 4^th Street, Tiruppur-641602, Tamilnadu, India
Nature of instrument creating charge	1. Memorandum of Deposit for creation of further charge for term loan / overall limit where the Initial charge is created by way of Mortgage by Deposit of Title Deeds. 2. Supplemental Agreement of Loan for increase in the Overall limit. 3. Supplemental Agreement of Hypothecation of Goods and Assets for increase in the Overall limit. 4. Letter Regarding the Grant of Individual limits within the Overall limit.
Date of instrument Creating the charge	06.07.2011
Amount secured by the charge	Rs. 1360.800 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest CC(Hypothecation) - 4.25% above BR,CL-5.00% above BR,TL I&II - 5.75% above BR,TL III&IV-5.25% above BR,TL V- 4.50% above BR. Terms of repayment The Corporate Loan shall be paid in 36 Installments starting from July 2011 and ending in June 2014. Margin RM / SIP / FG - 25% Receivables - 30% Cover period for Receivables - 75 days LC (WC) -15% One time BG [EPCG] -15% Extent and operation of the charge First charge on the entire Raw Materials, Stock-in-Progress, Finished Goods, Receivables and other Current Assets. Equitable Mortgage on Property No.01 of All that piece and parcel of land known as plot nos. E-6, G-10 in SIPCOT Industrial Growth Centre, Perundurai containing 5.02 acres at Survey Nos.99 and 137 and Property No.02 of All that piece and parcel of land known as Plot nos.F-20 in the SIPCOT Industrial Growth Centre, Perundurai containing 3.55 acres at Survey Nos.99,100 and 120.
Short particulars of the property charged (Including location of the property)	First charge on the entire Raw Materials, Stock-in-Progress, Finished Goods, Receivables and other Current Assets. Equitable Mortgage on Property No.01 of All that piece and parcel of land known as plot nos. E-6, G-10 in SIPCOT Industrial Growth Centre, Perundurai within the village limits of Ingur, Taluk of Perundurai Sub-Regn Dt. of Perundurai, in Revenue Dt. of Erode containing 5.02 acres at Survey Nos.99 and 137 and Property No.02 of All that piece and parcel of land known as Plot nos. F-20 in the SIPCOT Industrial Growth Centre, Perundurai within the village limits of Ingur, Taluk of Perundurai Sub-Regn Dt. of Perundurai, in revenue Dt. of Erode containing 3.55 acres at Survey Nos.99,100 and 120.
Date of instrument modifying the charge	24.04.2010
Particulars of the present modification	The Limit has been enhanced from Rs.1007.700 Millions to Rs.1360.800 Millions as under Facilities Existing Revised (Rs. in Millions) CC (Hypothecation) 400.000 700.000 Corporate Loan -- 100.000 LC (WC) 100.000 100.000 BG(EPCG) 29.100 4.200 Term Loan I -V 476.600 456.600 Current Credit Exposure 2.000 -- Total 1007.700 1360.800

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Computers

· Car

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. 55.14
UK Pound	1	Rs. 86.29
Euro	1	Rs. 67.72

INFORMATION DETAILS

Information Gathered by :	--
Report Prepared by :	DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		30

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.