MIRA INFORM REPORT

Report Date :

11.06.2012

IDENTIFICATION DETAILS

Name :	SRI SHANMUGAVEL MILLS PRIVATE LIMITED
Registered Office :	207, Mangalam Road, Tirupur, Coimbatore – 641604, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	24.04.1980
Com. Reg. No.:	18-000935
Capital Investment / Paid-up Capital :	Rs.5.000 Millions
CIN No.: [Company Identification No.]	U1711TZ1980PTC000935
TAN No.: [Tax Deduction & Collection Account No.]	CMBS05088G
PAN No.: [Permanent Account No.]	AADCS8200N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Supplier of Yarn
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 3280000
Status :	Satisfactory
Payment Behaviour :	Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct 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 :	207, Mangalam Road, Tirupur, Coimbatore – 641604, Tamilnadu, India
Tel. No.:	91-421-2245337/ 2205031/35/32
Fax No.:	91-421-2205036
E-Mail :	ssmgroup@airtailmail.in
Website :	www.sudhanyarn.com
Administrative Office :	Thadicombu – 624709, District Dindigul, Tamilnadu, India
Tel. No.:	91-451-2557001/02/ 2557332/532
Fax No.:	94-451-2557225/ 259
E-Mail :	ssmgroup@gmail.com ssmgroup@vsnl.com

DIRECTORS

As on 01.09.2011

Name :

Mr. Veluswamy Pallapalayam Sennimalai Gounder

Designation :

Managing director

Address :

207, Mangalam Road, Karuvampalayam, Tirapur – 641604, Tamilnadu, India

Date of Birth/Age :

05.06.1935

Date of Appointment :

25.07.1980

DIN No.:

01468617

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	U17111TZ1980PTC000935	SRI SHANMUGAVEL MILLS PRIVATE LIMITED	Managing director	25-07-80	25-07-80	-	Active	NO
2	U17111TZ1993PTC004480	PRABHU SPINNING MILLS PRIVATE LIMITED	Managing director	11-10-96	11-10-96	-	Active	NO
3	U17111TZ1998PTC008633	SRI MATHA SPINNING MILLS PRIVATE LIMITED	Director	02-11-98	02-11-98	-	Active	NO
4	U17111TZ1995PTC005944	ADISANKARA SPINNING MILLS PRIVATE LIMITED	Director	21-09-99	21-09-99	-	Active	NO
5	U17111TZ2001PTC009831	VEDHA SPINNING MILLS PRIVATE LIMITED	Director	17-07-01	17-07-01	-	Active	NO
6	U17111TZ1982PTC001195	SIVARAJ SPINNING MILLS PRIVATE LIMITED	Director	26-03-04	26-03-04	-	Active	NO
7	U17111TZ1988PTC002240	SRI VELAYUDHASWAMY SPINNING MILLS PRIVATE LIMITED	Director	26-03-04	26-03-04	-	Active	NO
8	U17111TZ1988PTC002135	SUDHAN SPINNING MILLS PRIVATE LIMITED	Director	26-03-04	26-03-04	-	Active	NO
9	U17111TZ2006PTC012582	SHRI SIDDHI VINAYAGA TEX INDIA PRIVATE LIMITED	Director	15-02-06	15-02-06	-	Active	NO
10	U17111TZ2006PTC012729	PRASSANNA SPINNING MILLS PRIVATE LIMITED	Director	24-04-06	24-04-06	-	Active	NO
11	U17111TZ2007PTC013690	SRI SANKARI YARNS PRIVATE LIMITED	Director	04-05-07	04-05-07	-	Active	NO
12	U29199TZ2007PTC014002	RENERGY EQUIPMENTS INDIA PRIVATE LIMITED	Managing director	25-10-07	25-10-07	-	Active	NO

Name :

Mr. Kandaswamy Chennimalai Gounder

Designation :

Director

Address :

207, Mangalam Road, Karuvampalayam, Tirapur – 641604, Tamilnadu, India

Date of Birth/Age :

11.07.1943

Date of Appointment :

26.03.2004

DIN No.:

01575050

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	U17111TZ1982PTC001195	SIVARAJ SPINNING MILLS PRIVATE LIMITED	Managing director	19-09-96	19-09-96	-	Active	NO
2	U17111TZ1995PTC005944	ADISANKARA SPINNING MILLS PRIVATE LIMITED	Managing director	29-09-99	29-09-99	-	Active	NO
3	U17111TZ1980PTC000935	SRI SHANMUGAVEL MILLS PRIVATE LIMITED	Director	26-03-04	26-03-04	-	Active	NO
4	U17111TZ2001PTC009831	VEDHA SPINNING MILLS PRIVATE LIMITED	Director	26-03-04	26-03-04	-	Active	NO
5	U17111TZ1998PTC008633	SRI MATHA SPINNING MILLS PRIVATE LIMITED	Director	26-03-04	26-03-04	-	Active	NO
6	U17111TZ1993PTC004480	PRABHU SPINNING MILLS PRIVATE LIMITED	Director	26-03-04	26-03-04	-	Active	NO
7	U17111TZ1988PTC002240	SRI VELAYUDHASWAMY SPINNING MILLS PRIVATE LIMITED	Director	26-03-04	26-03-04	-	Active	NO
8	U17111TZ1988PTC002135	SUDHAN SPINNING MILLS PRIVATE LIMITED	Director	26-03-04	26-03-04	-	Active	NO
9	U17111TZ2006PTC012582	SHRI SIDDHI VINAYAGA TEX INDIA PRIVATE LIMITED	Director	15-02-06	15-02-06	-	Active	NO
10	U17111TZ2006PTC012729	PRASSANNA SPINNING MILLS PRIVATE LIMITED	Director	24-04-06	24-04-06	-	Active	NO
11	U17111TZ2007PTC013690	SRI SANKARI YARNS PRIVATE LIMITED	Director	04-05-07	04-05-07	-	Active	NO
12	U29199TZ2007PTC014002	RENERGY EQUIPMENTS INDIA PRIVATE LIMITED	Director	25-10-07	25-10-07	-	Active	NO

Name :

Mr. Kandaswamy Shanmugavel

Designation :

Director

Address :

207, Mangalam Road, Karuvampalayam, Tirapur – 641604, Tamilnadu, India

Date of Birth/Age :

04.03.1973

Date of Appointment :

11.10.1999

DIN No.:

00429940

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	U17111TZ1995PTC005944	ADISANKARA SPINNING MILLS PRIVATE LIMITED	Director	27-09-96	27-09-96	-	Active	NO
2	U17111TZ1980PTC000935	SRI SHANMUGAVEL MILLS PRIVATE LIMITED	Director	11-10-99	11-10-99	-	Active	NO
3	U17111TZ1988PTC002135	SUDHAN SPINNING MILLS PRIVATE LIMITED	Director	11-10-99	11-10-99	-	Active	NO
4	U17111TZ1988PTC002240	SRI VELAYUDHASWAMY SPINNING MILLS PRIVATE LIMITED	Director	07-09-00	07-09-00	-	Active	NO
5	U29199TZ2007PTC014002	RENERGY EQUIPMENTS INDIA PRIVATE LIMITED	Director	25-10-07	25-10-07	-	Active	NO

Name :

Mr. Sivakumar Shanthi

Designation :

Director

Address :

No.33, Town Extension 4^th Street, Tirapura – 641604, Tamilnadu, India

Date of Birth/Age :

05.05.1965

Date of Appointment :

03.09.1997

DIN No.:

02556376

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	U17111TZ1980PTC000935	SRI SHANMUGAVEL MILLS PRIVATE LIMITED	Director	03-09-97	03-09-97	-	Active	NO
2	U17111TZ1982PTC001195	SIVARAJ SPINNING MILLS PRIVATE LIMITED	Director	06-09-00	06-09-00	-	Active	NO
3	U17111TZ2006PTC012582	SHRI SIDDHI VINAYAGA TEX INDIA PRIVATE LIMITED	Director	15-02-06	15-02-06	-	Active	NO
4	U14106TZ1984PTC001898	STEELROCK CEMENTS PRIVATE LIMITED	Director	19-01-11	19-01-11	-	Active	NO
5	U17111TZ1983PTC001266	SRIVIGNESH YARNS PRIVATE LIMITED	Director	19-01-11	19-01-11	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 01.09.2011

Names of Shareholders	No. of Shares
P S Veluswany	4500
C. Kandaswamy	4500
V Dhanlakshmi	4500
K Indira	4500
S Shanthi	4000
R Geetha	4000
R Umamaheshwari	4000
S Kavitha	4000
K Shanmugavel	4500
K Sivaraj	4500
J Jayalakshmi	4000
S Veena Abirami	1500
S Gowthami	1500
TOTAL	50000

As on 01.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Supplier of Yarn

Products :

Item Description	Item Code No.
Woven Fabric	52.08
Knitted Fabric	60.06
Cotton Yarn	52.05

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Licensed Capacity
SPG Division Spindles
WVG Division Looms	Nos.	41616
WM Division	Nos.	230
Captive Use : Wind Electric Generators	Nos.	33
Sale to EB : Power Generation Capacity	M.W	22.00
Wind Electric Generators	Nos.	1
Power Generation Capacity	M.W	0.85

Particulars	Unit	Actual Production
i) Spinning Division
a) Own
Yarn	Kgs.	8312890
b) Through Job work
OE Yarn	Kgs	1445249
Knitted Fabric	Kgs	556342
ii) Weaving Division
Woven Fabric	Mtrs.	11263426
a) Own
b) Job Work to Others	Mtrs.	2942838
iii) Wind Mill Davison
a) Power generation - for captive use	Units	30846460
b) Power generation - for sale to EB	Units	365405

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• IDBI Bank Limited, No.1, Vinayaga Nagar, Melur Road, K K Nagar, Mudurai – 625020, Tamilnadu, India
• State Bank of India
• Axis Bank Limited
• Syndicate Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Term loans (note 1)
Spinning division
- Syndicate Bank (SYB)	24.000	0.000
Weaving division
- IDBI Limited (IDBI) - TLI	0.000	14.000
- IDBI Limited (IDBI) - TL II	40.500	56.700
- State Bank of India (SBI) - TL I	0.000	12.000
- State Bank of India (SBI) - TL II	98.125	0.000
Wind mill division
- State Bank of India (SBI) (2008-09 WEG Project) - TL III	37.500	47.442
- IDBI Bank Limited (IDBI) (2009-10 WEG Project)	45.000	60.000
- State Bank of India (SBI) (2010-11 WEG Project) - TL IV	112.500	0.000
- AXIS Bank Limited (Axis)	100.000	0.000
Working Capital Loans (note 2)
Spinning division
Open cash credit
- IDBI Bank Limited (IDBI)	195.318	19.450
- State Bank of India (SBI)	172.680	0.000
- Syndicate Bank (SYB)	234.176	90.655
Short term working capital loans
- IDBI Bank Limited (IDBI) - Adhoc	0.000	180.000
- IDBI Bank Limited (IDBI) - Adhoc Key loan	250.000	0.000
- IDBI Bank Limited (IDBI)	0.000	160.000
Weaving division
Open cash credit
- IDBI Bank Limited (IDBI)	346.382	46.239
Short term working capital loans
- IDBI Bank Limited (IDBI)	0.000	50.000
Total	1656.181	736.486
NOTES: 1. Term loan of SYB is secured by hypothecation of autoconers acquired out of the term loan. Term loans I and II of IDBI and Term loan of SBI sanctioned to the company for weaving division are secured to IDBI and SBI by hypothecation of all moveable assets including plant and machinery and mortgage of immoveable properties of the company's weaving division situate at Kottaiyur, Agaram Village, Dindigul Taluk of Dindigul District by way of first charge on pari passu basis with SBI. Term loan III of SBI sanctioned for WTG project is secured by exclusive charge by hypothecation of three 750 KW Wind Electric Generators (WEGs) and mortgage of landed properties at Udumalpet wherein the said WEGs are installed. Term loan of IDBI sanctioned for wind mill division is secured by hypothecation of two numbers of 850 KW wind turbines acquired out of the term loan. Term loan IV of SBI sanctioned for WTG project is secured by exclusive charge by hypothecation of three 850 KW wind electric generators acquired out the term loan. Term loan of AXIS sanctioned for wind mill division is secured by hypothecation of three numbers of 850 KW wind turbines acquired out of the term loan. 2. Working capital assistance sanctioned for the company's ring spinning division by IDBI and SYB are secured by hypothecation of current and other moveable assets and mortgage of immoveable properties of the company's ring spinning division situate at Thadicombu, Dindigul Taluk of Dindigul District by way of first charge on pari passu basis. Working capital assistance of SBI sanctioned for the company's ring spinning division is secured by hypothecation of current and other moveable assets of the company's ring spinning division. Working capital assistance sanctioned for the company's weaving division by IDBI has been secured by hypothecation of current and other moveable assets and mortgage of immoveable properties of the company's weaving division situate at Kottaiyur, Agaram Village, Dindigul Taluk of Dindigul District by way of first charge on pari passu basis with SBI. Adhoc working capital key loan of IDBI is availed against pledge of cotton. 3. All the facilities granted to the company have been guaranteed by the directors of the company in their personal capacity. (Rs. In Millions)
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Trade Advanced	300.000	390.000
Total	300.000	390.000

Banking Relations :	--
Auditors :
Name :	T.R. Ramanathan Chartered Accountant
Address :	343, B.S. Sundaram Road, Tirapur – 641601, Tamilnadu, India
PAN.:	ACSPR0567R
Associates :	Prabhu Spinning Mills Private Limited Renergy Equipments India (Private) Limited Sivaraj Spinning Mills Private Limited Adisankara Spinning Mills Private Limited Sri Velayudhaswamy Spinning Mills Private Limited Vedha Spinning Mills Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100/- each	Rs.5.000 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		5.000	5.000	5.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		815.100	523.700	413.400
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		820.100	528.700	418.400
LOAN FUNDS
1] Secured Loans		1656.181	736.486	456.196
2] Unsecured Loans		300.000	390.000	390.000
TOTAL BORROWING		1956.181	1126.486	846.196
DEFERRED TAX LIABILITIES		68.036	63.184	68.444
TOTAL		2844.317	1718.370	1333.040
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1111.799	730.228	770.526
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		8.043	8.043	8.043
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1274.817	552.333	212.224
	Sundry Debtors	319.346	254.567	202.975
	Cash & Bank Balances	17.110	10.254	32.443
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	373.218	435.608	175.014
Total Current Assets		1984.491	1252.762	622.656
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	28.291	13.995	3.436
	Other Current Liabilities	73.442	192.141	29.297
	Provisions	158.283	66.527	35.452
Total Current Liabilities		260.016	272.663	68.185
Net Current Assets		1724.475	980.099	554.471
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2844.317	1718.370	1333.040

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	5438.106	3598.631	3182.839
		Other Income		79.853	105.696
		TOTAL (A)	5438.106	3678.484	3288.535
Less	EXPENSES
		Raw Material Consumed		1102.328	799.784
		Power and Fuel		84.503	94.444
		Payment and Provision for Remuneration and Other benefit to employee	4752.627	80.047	72.185
		Other Manufacturing Expenses		183.451	149.888
		Administrative and Selling Expenses		99.925	102.016
		Increase/ Decrease in Stock		1772.509	1790.210
		TOTAL (B)	4752.627	3322.763	3008.527
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		685.479	355.721	280.008
Less	FINANCIAL EXPENSES (D)		110.565	69.240	81.624
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		574.914	286.481	198.384
Less/ Add	DEPRECIATION/ AMORTISATION (F)		128.466	148.496	161.736
	PROFIT BEFORE TAX (E-F) (G)		446.448	137.985	36.648
Less	TAX (H)		96.607	27.405	12.183
	PROFIT AFTER TAX (G-H) (I)		350.304	110.580	24.465
	Income Tax Earlier Year		58.904	0.280	1.465
	BALANCE CARRIED TO THE B/S		291.400	110.300	23.000
	EARNINGS IN FOREIGN CURRENCY		2978.726	1974.642	1919.195
	IMPORTS
		On Account of Capital Items	170.313	0.725	46.262
		Stores & Spares	24.029	36.920	19.157
		Yarn	0.000	0.000	0.740
	TOTAL IMPORTS		194.342	37.645	66.159
	Earnings Per Share (Rs.)		5828.00	2206.00	460.00

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.44	3.01	0.74
Net Profit Margin (PBT/Sales)	(%)	NA	3.83	1.15
Return on Total Assets (PBT/Total Assets}	(%)	14.42	6.96	2.63
Return on Investment (ROI) (PBT/Networth)		0.54	0.26	0.09
Debt Equity Ratio (Total Liability/Networth)		2.70	2.65	2.19
Current Ratio (Current Asset/Current Liability)		7.63	4.59	9.13

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) 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	--
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

HIGLIGHTS OF OPERATIONS

Turnover for the year 2010-11 reached a significant milestone of Rs.5375.300 millions and operations yielded a net surplus of Rs.291.400 millions as against Rs.110.300 millions in the previous year. Improved performance in all respects was contributed by better utilization of capacity in both weaving division and spinning division. Increased wind power generation during the year also supported to report progressive results for the year.

During the year company has installed 50 imported air jet looms for the expansion project undertaken in weaving division with term loan assistance from SBI and the company has also installed three autoconers in spinning division with term loan assistance of Rs.24.000 millions from Syndicate Bank. In the power generation front, 6 wind electric generators of 850 KW each have also been installed during the year with term loan assistance from bankers of the company.

In spite of satisfactory performance as mentioned above, from the last quarter of the year the industry is facing critical situations right from raw material procurement to sale of end products. In the prevailing industrial scenario with increasing overheads coupled with sluggish movement of finished goods, the directors wish to have enough financial cushions to meet financial obligations and to operate the units at the best possible optimum level without any fiscal strain. Hence, directors have not made any recommendation for declaration of dividend for the year 2010-11.

FINANCE

During the year financial obligations to the bankers of the company have been met promptly. For the wind power projects implemented during the year, company has been sanctioned term loan of Rs.112.000 millions by SBI for installation of 3 WEGs and Rs.125.500 millions by Axis Bank for 3 WEGs. Term loan of Rs.24.000 millions sanctioned by Syndicate Bank has been fully utilized for installation of autoconers and term loan of Rs.145.000 millions sanctioned by SBI was utilized to the eligible extent of expansion project being implemented in weaving division. Working capital assistance sanctioned by the bankers has been effectively utilized during the year.

CONTINGENT LIABILITIES ARE NOT PROVIDED FOR

Rs in Millions

Particulars	31.03.2011	31.03.2010
a) LC Bills discounted with banks	3 83.830	6 67.767
b) Fringe Benefit Tax	0.974	0.974
TOTAL	384.804	668.741

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17111TZ1980PTC000935
Name of the company	SRI SHANMUGAVEL MILLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	207, Mangalam Road, Tirapur, Coimbatore – 641604, Tamilnadu, India Email : ssmgroup@gmail.com
This form is for	Creation of charge
Type of charge	Movable Property
Particular of charge holder	IDBI Bank Limited, No.1, Vinayaga Nagar, Melur Road, K K Nagar, Mudurai – 625020, Tamilnadu, India Email : perkkiniyan.p@idbi.co.in
Nature of instrument creating charge	Deed of hypothecation
Date of instrument Creating the charge	29.09.2011
Amount secured by the charge	Rs.250.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Base rate plus 2.50% p.a. Payable monthly Terms of Repayment Term Loan To Be Repaid In 16 Quarterly Installments Commencing From 01/04/2012 - 15 Installments @ Rs.2.400 millions each and 1 Installment of Rs.2.000 millions Margin 25% Extent and Operation of the charge The charge operates as security for the working capital term loan of Rs.2.500 millions sanctioned to the company.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of raw materials, work in process, finished goods, receivables and other moveable assets including plant and machinery of the company's weaving division situate at Kottaiyur, Agaram Village, Dindigul District and spinning unit situate at Thadicombu, Dindigul District.

FIXED ASSETS

• Land Freehold
• Building
• Plant and Machinery
• Furniture
• Vehicles
• Live Stock

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.55.36
UK Pound	1	Rs.85.64
Euro	1	Rs.69.21

INFORMATION DETAILS

Report Prepared by :

NTH

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	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		50

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.