MIRA INFORM REPORT

Report Date :

27.07.2012

IDENTIFICATION DETAILS

Name :	SIVAKUMAR SPINNING MILLS PRIVATE LIMITED
Registered Office :	Shankar Nagar, P.O. Taraiyathu, Tiruneveli – 627357, Tamilnadu, India
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.08.1974
Com. Reg. No.:	18-006680
Capital Investment / Paid-up Capital :	Rs.14.717 Millions
CIN No.: [Company Identification No.]	U17111TN1974PTC006680
TAN No.: [Tax Deduction & Collection Account No.]	MRIS01663E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Yarn
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 100000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Profitability of the company appears to be low. However trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealing with some caution.

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

RBI DEFAILTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAILTERS’ 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 :	Shankar Nagar, P.O. Taraiyathu, Tiruneveli – 627357, Tamilnadu, India
Tel. No.:	91-462-2300292/2300272
Fax No.:	91-462-2300215
E-Mail :	smrajunaidu@rediffmail.com sgm_tvl@yahoo.co.in

DIRECTORS

As on 30.09.2011

Name :

Mr. Deivanayagam Kandiah

Designation :

Director

Date of Appointment :

28.09.1998

DIN No.:

00788338

Name :

Mr. Thirupathi Navaneethakrishnan

Designation :

Director appointed in casual vacancy

Date of Appointment :

23.12.2005

DIN No.:

00788380

Name :

Ms. Rajenthiran Ramya Devi

Designation :

Additional director

Date of Appointment :

18.08.2003

DIN No.:

00867748

Name :

Mr. Kondama Venkadasmy Rajendran Kowsigan

Designation :

Managing director

Date of Appointment :

29.09.2000

DIN No.:

01151099

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	U51109TN1987PLC014167	AUROKNIT EXPORTS (INDIA) LIMITED	Director	23/08/1995	23/08/1995	-	Active	NO
2	U17111TN1974PTC006680	SIVAKUMAR SPINNING MILLS PRIVATE LIMITED	Managing director	29/09/2000	29/09/2000	-	Active	NO
3	U35999TN1981PTC009032	PANDYAN AUTOMOBILES (TIRUNELVELI) PRIVATE LIMITED	Director	12/10/2000	12/10/2000	-	Active	NO
4	U17111TN2002PTC048292	VESWAVENBAS TEXTILES PRIVATE LIMITED	Whole-time director	09/06/2010	09/06/2010	-	Active	NO

Name :

Mr. Mathavan Pitchiah

Designation :

Director

Date of Appointment :

02.03.2007

DIN No.:

02738981

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	U17111TN1974PTC006680	SIVAKUMAR SPINNING MILLS PRIVATE LIMITED	Director	02/03/2007	02/03/2007	-	Active	NO
2	U71309TN1995PLC032301	SRI GANAPATHY FINLEASE LIMITED	Director	19/03/2010	19/03/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
D kandiah	15000
K Subbammal	2166
K Deivanayagam	2250
G Sudhangaran	3500
R.Balachandran	2333
R.Ravkhandran	2338
Kaushi Navinchand	1581
Mehul Manilal	2204
K Vee Rajenthiran	814500
Amutha Rajenthiran	57500
KVR Kousigan	285000
R Karittikeyan	150000
R Ramydevi	20000
R Velraj	200
R Santhosh Kumar	200
S Krishnamoorthy	200

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Yarn

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Installed Capacity
Cotton Purchased	Kgs	713360
Cotton/Polyester Consumed	Kgs	758674
Yearn Produced	Kgs	625295

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Andhra Bank, 55A, Kailasapuram, SN High Road, Tirunelveli – 627001, Tamilnadu, India

Facilities :

(Rs. in Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
ANDHRA BANK – OCC - Secured by Current Assets and plant and machineries and personal guarantee of Managing Director of the Company - limit upto Rs.15.000 Millions	17.061	15.594
ANDHRA BANK – Term Loans Secured by specific items of machineries and personal guarantee of managing director of the company – limit upto Rs.5.300 Millions	0.195	2.884
ANDHRA BANK – ILC	18.211	20.516
Andonet Global Limited – HP Loan and personal guarantee of Managing Director of the Company	1.134	9.219
Total	36.601	48.213
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Deposits and Loans From Director and Share holder	6.064	4.384
Total	6.064	4.384

Banking Relations :	--
Auditors :
Name :	R.Sundararaman Chartered Accountant
Address :	No.12, Sr. Puram, Tirunelveli – 627001, Tamilnadu, India
PAN.:	AACFP0506E
Related Party:	· The Sri Ganapathy Mills Company Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1471700	Equity Shares	Rs.10/- each	Rs.14.717 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		14.717	14.717	14.717
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		10.595	7.377	6.963
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		25.312	22.094	21.680
LOAN FUNDS
1] Secured Loans		36.601	48.213	40.428
2] Unsecured Loans		6.064	4.384	5.558
TOTAL BORROWING		42.665	52.597	45.986
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		67.977	74.691	67.666
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		29.340	37.703	41.203
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	39.222	28.949	19.332
	Sundry Debtors	5.768	6.630	7.477
	Cash & Bank Balances	2.174	2.568	1.766
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	7.169	9.241	7.516
Total Current Assets		54.333	47.388	36.091
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	5.826	0.969	0.787
	Other Current Liabilities	9.870	8.840	8.841
	Provisions	0.000	0.591	0.000
Total Current Liabilities		15.696	10.400	9.628
Net Current Assets		38.637	36.988	26.463
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		67.977	74.691	67.666

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income
		Other Income
		TOTAL )	109.629	113.579	136.196
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	98.448	104.144	134.303
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		11.181	9.435	1.893
Less	FINANCIAL EXPENSES		6.698	6.494	5.274
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		4.483	2.941	(3.381)
Less/ Add	DEPRECIATION/ AMORTISATION		1.216	2.528	2.253
	NET PROFIT PROFIT/(LOSS)		3.267	0.413	(5.634)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.98	0.36	(4.14)
Return on Total Assets (PBT/Total Assets}	(%)	6.01	0.87	(15.61)
Return on Investment (ROI) (PBT/Networth)		0.13	0.02	0.26
Debt Equity Ratio (Total Liability/Networth)		2.31	2.85	2.57
Current Ratio (Current Asset/Current Liability)		3.46	4.56	3.75

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 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 (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]	PAN of Proprietor/Partner/Director, if available	No
32]	Passport No of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No

FINANCIAL PERFORMANCE

The performance of the current year of the company has registered better improvement over that of the previous year. This positive result can best be attributed mainly to the favour able prices of finished products and the sales realization resulting in Net profit of Rs.3.267 Millions for the year as compared to a profit of Rs.0.413 Millions in the immediate previous year.

FUTURE PROSPECTS

Due to high decline of demand and prices of finished products in both domestic and international markets, the entire textile industry had distressed the profitability in the first quarter of the current financial year. Consequent to the above and the restrictions imposed on cotton yam export In the last quarter of 2010-2011 led to huge accumulation of Inventories with the mills leading to crashing of yam prices The financial stress caused by the above said developments is likely to reflect in the reduced profitability of the textile Industries in the country in financial year 2011- 2012.

CONTINGENT LIABILITIES

ITEM	31.03.2011
Disputed PF and ESI	2.892
Disputed Liability towards Labour	0.034
Disputed Liability towards Sales tax	0.063

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17111TN1974PTC006680
Name of the company	SIVAKUMAR SPINNING MILLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Shankar Nagar, P.O. Taraiyathu, Tiruneveli – 627357, Tamilnadu, India Email: smrajunaidu@rediffmail.com
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	Andhra Bank, 55A, Kailasapuram, SN High Road, Tirunelveli – 627001, Tamilnadu, India Email: bmche1190@andhrabank.co.in
Nature of instrument creating charge	Composite Agreement
Date of instrument Creating the charge	19.06.2009
Amount secured by the charge	Rs.3.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest PLR Rate +0.50%, presently at12.75%p.a. with monthly/quarterly rests Terms of Repayment On Demand Margin As Per Bank Norms Extent and Operation of the charge The Charge shall operate as Exclusive First Charge in favour of the Bank for the Overall Limit of Rs.3.000 Millions together with interest, cost, charges and other expenses that may accrue and or debited to the Company accounts from time to time.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Goods Produce,Merchandise,Stock stored or to be stored from time to time under Open Cash Credit Goods, Produce, Merchandise, Stocks pledged under Key Cash Credit Goods Hypothecated/Pledged under Packing Credit Plant and Machinery(Existing and to be purchased) Book Debts, Receivables and other claims

FIXED ASSETS

· Land

· Building

· Machinery

· Furniture

· Vehicles

· Other Assets

· Computer

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 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.55.94
UK Pound	1	Rs.86.55
Euro	1	Rs.67.95

INFORMATION DETAILS

Report Prepared by :

KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		36

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.