1. Summary Information

		Country	India
Company Name	RAJANARAYAN TEXTILES LIMITED	Principal Name 1	Thiagarajan Nagappan
Status	Moderate	Principal Name 2	Thiagarajan Kasi Viswanathan Thiagarajan
		Registration #	18-000793
Street Address	70, Race Course, Coimbatore – 641018, Tamilnadu
Established Date	06.03.1978	SIC Code	--
Telephone#	91-422-4392222	Business Style 1	Subject is engaged in Textiles Spinning and intermediary products.
Fax #	91-422-4392220	Business Style 2	--
Homepage	www.rajanarayan.com	Product Name 1	--
# of employees	Not Available	Product Name 2	--
Paid up capital	Rs.46,000,000/-	Product Name 3	--
Shareholders	Directors or relatives of Directors (100%)	Banking	Union Bank of India
Public Limited Corp.	YES	Business Period	34 Years
IPO	YES	International Ins.	-
Public Enterprise	YES	Rating	B (30)
Related Company
Relation	Country	Company Name	CEO
	--		--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2011		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	31,527,000	Current Liabilities	8,496,000
Inventories	28,222,000	Long-term Liabilities	11,120,000
Fixed Assets	75,633,000	Other Liabilities	950,000
Deferred Assets	0,000	Total Liabilities	20,566,000
Invest& other Assets	0,000	Retained Earnings	68,816,000
		Net Worth	114,816,000
Total Assets	135,382,000	Total Liab. & Equity	135,382,000
Total Assets (Previous Year)	158,317,000
P/L Statement as of	31.03.2011		(Unit: Indian Rs.)
Sales	84,118,000	Net Profit	4,117,000
Sales(Previous yr)	19,808,000	Net Profit(Prev.yr)	161,620,000

MIRA INFORM REPORT

Report Date :

17.03.2012

IDENTIFICATION DETAILS

Name :	RAJANARAYAN TEXTILES LIMITED
Registered Office :	70, Race Course, Coimbatore – 641018, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	06.03.1978
Com. Reg. No.:	18-000793
Capital Investment / Paid-up Capital :	Rs.46.000 Millions
CIN No.: [Company Identification No.]	U17111TZ1978PLC000793
TAN No.: [Tax Deduction & Collection Account No.]	CMBR03425C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in Textiles Spinning and intermediary products.
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 460000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. 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 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 – 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 :	70, Race Course, Coimbatore – 641018, Tamilnadu, India
Tel. No.:	91-422-4392222
Fax No.:	91-422-4392220
E-Mail :	tina@rajanarayan.com
Website :	www.rajanarayan.com
Factory :	626, Chikkarasampalayam, Sathyamangalam – 638401
Tel. No.:	91-4295-223223
Overseas Office :	2327 Englert Drive Suite 1019 Durham, NC 27713 USA
Tel. No.:	(919)300-5222
Fax No.:	(919)246-5783

DIRECTORS

As on 30.09.2011

Name :

Thiagarajan Nagappan

Designation :

Managing director

Address :

79, Bharathi Park, 8^th Cross, Coimbatore – 641011, Tamilnadu, India

Date of Birth/Age :

15.12.1933

Date of Appointment :

01.01.1983

DIN No.:

00007954

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	U65191TN1971PLC006068	SOUTHERN AUTO FINANCE LIMITED	Managing director	24/04/1974	24/04/1974	-	Active	NO
2	L93090TN1962PLC004947	CHETTINAD CEMENT CORPORATION LIMITED	Director	10/10/1979	10/10/1979	25/09/2007	Active	NO
3	U17111TZ1978PLC000793	RAJANARAYAN TEXTILES LIMITED	Managing director	1/01/2007	1/01/1983	-	Active	NO
4	U93090TN1988PLC037507	TAMIL NADU INDUSTRIES CAPTIVE POWER COMPANY LIMITED	Director	18/01/1989	18/01/1989	-	Active	NO
5	U52110TZ1986PTC001730	LNGS PRIVATE LIMITED	Director	28/09/2007	23/12/2006	2/04/2009	Active	NO

Name :

Thiagarajan Kasi Viswanathan Thiagarajan

Designation :

Managing director

Address :

79, Bharathi Park, 8^th Cross, Coimbatore – 641011, Tamilnadu, India

Date of Birth/Age :

15.02.1961

Date of Appointment :

03.07.1981

DIN No.:

00006053

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	U17111TZ1978PLC000793	RAJANARAYAN TEXTILES LIMITED	Managing director	1/01/2007	3/07/1981	-	Active	NO
2	U65191TN1971PLC006068	SOUTHERN AUTO FINANCE LIMITED	Managing director	29/09/2003	29/09/2003	-	Active	NO
3	U72300TN2005PLC057616	HYDROCARBON PROJECT ENGINEERS LIMITED	Director	14/11/2005	14/11/2005	-	Active	NO
4	U52110TZ1986PTC001730	LNGS PRIVATE LIMITED	Director	28/09/2007	23/12/2006	2/04/2009	Active	NO
5	U72200TZ2007PTC013575	THREE SIXTY BUSINESS PROCESS INDIA PRIVATE LIMITED	Director	27/03/2007	27/03/2007	-	Active	NO

Name :

Thiagarajan Nagappan

Designation :

Managing director

Address :

79, Bharathi Park, 8^th Cross, Coimbatore – 641011, Tamilnadu, India

Date of Birth/Age :

11.08.1962

Date of Appointment :

31.10.1998

DIN No.:

00006042

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	U17111TZ1978PLC000793	RAJANARAYAN TEXTILES LIMITED	Managing director	1/01/2007	31/10/1998	-	Active	NO
2	U52110TZ1986PTC001730	LNGS PRIVATE LIMITED	Director	28/09/2007	23/12/2006	2/04/2009	Active	NO
3	U72200TZ2007PTC013575	THREE SIXTY BUSINESS PROCESS INDIA PRIVATE LIMITED	Director	27/03/2007	27/03/2007	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
N. Thiagarajan	20422

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 :

Subject is engaged in Textiles Spinning and intermediary products.

Products :

PRODUCT DESCRIPTION	ITC CODE NO
Cotton Yarn	5205.00
Polyester Yarn	5509.00
Cotton Knitted Grey Fabric	660299.09

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Cotton Yarn (own)	Kgs.	51168 spindles	18360 spindles	488203

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Union Bank of India

Kotak Mahindra Bank Limited

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Union Bank of India Cash Credit (Secured by Land 10.40 acre along with building and factory shed at SF No. 626/1, 626/2, 626/3, 627/1, 627/2, 627/3, 628/1 in Chikarasampalayam Village, Door No – 144, 145A, Peekiri Palayam Road, Sathyamangalam)	6.846	0.000
From Kotak Mahindra Bank Limited Vehicle	0.392	0.000
From TIIC Limited Term Loan (Secured by Land at SF No: 78/5-A, Kethanoor Village Tirupur measuring 1.10 acres and windmill installed thereat)	2.720	3.900
Total	9.958	3.900
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Loan from Directors	1.162	0.000
Total	1.162	0.000

Banking Relations :	--
Auditors :
Name :	C N Viswanathan Chartered Accountant
Address :	39, GF-3, Kalpavrukshaa, 11^th Street, Tatabad, Coimbatore – 641012, Tamilnadu, India
PAN.:	AAZPV9078Q

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
460000	Equity Shares	Rs.100/- each	Rs.46.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
460000	Equity Shares	Rs.100/- each	Rs.46.000 Millions

Note: Of the above shares, 50000 equity shares of Rs.100/- each issued as Bonus shares by way of capitalization of reserves.

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		46.000	46.000	46.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		68.816	64.704	0.000
4] (Accumulated Losses)		0.000	0.000	(99.131)
NETWORTH		114.816	110.704	(53.131)
LOAN FUNDS
1] Secured Loans		9.958	3.900	250.926
2] Unsecured Loans		1.162	0.000	29.827
TOTAL BORROWING		11.120	3.900	280.753
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		125.936	114.604	227.622
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		75.633	85.405	92.366
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	16.514
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	28.222	10.727	2.468
	Sundry Debtors	8.933	13.526	68.413
	Cash & Bank Balances	8.770	7.652	5.467
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	13.824	41.008	30.816
Total Current Assets		59.749	72.913	107.164
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000	0.000	0.000
	Other Current Liabilities	8.496	7.214	29.751
	Provisions	0.950	36.500	0.078
Total Current Liabilities		9.446	43.714	29.829
Net Current Assets		50.303	29.199	77.335
MISCELLANEOUS EXPENSES		0.000	0.000	41.407
TOTAL		125.936	114.603	227.622

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	84.118	19.808	54.562
		Other Income	35.309	316.731	19.308
		TOTAL (A)	119.427	336.539	73.870
Less	EXPENSES
		Increase (Decrease) in stock	(6.117)	(6.201)	18.696
		Raw Material Consumed	53.276	16.329	35.741
		Power and Fuel	8.309	0.593	1.766
		Repairs and Maintenance	6.506	2.365	1.070
		Mill Store Consumption	1.955	2.215	0.114
		Salaries and Wages and Labour charges	26.309	51.336	53.520
		Administrative Expenses	8.805	47.799	7.037
		Selling Expenses	0.939	0.413	2.304
		Donation	0.000	0.000	0.011
		TOTAL (B)	99.982	114.849	120.259
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		19.445	221.690	(46.389)
Less	FINANCIAL EXPENSES (D)		0.524	2.377	42.093
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		18.921	219.313	(88.482)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		13.854	21.193	12.395
	PROFIT BEFORE TAX (E-F) (G)		5.067	198.120	(100.877)
Less	TAX (H)		0.950	36.500	(4.698)
	PROFIT AFTER TAX (G-H) (I)		4.117	161.620	(96.179)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		64.705	(99.130)	(2.716)
	SUNDRY CREDITORS FORFIETED OF EARLIER YEARS		0.005	2.215	0.000
Less	APPROPRIATIONS
		Income Tax earlier years paid	0.000	0.000	0.235
	BALANCE CARRIED TO THE B/S		68.817	64.705	(99.130)
	Earnings Per Share (Rs.)		8.95	351.35	(209.08)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.44	48.02	130.20
Net Profit Margin (PBT/Sales)	(%)	6.02	1000.20	184.88
Return on Total Assets (PBT/Total Assets}	(%)	3.74	125.14	50.56
Return on Investment (ROI) (PBT/Networth)		0.04	1.78	1.89
Debt Equity Ratio (Total Liability/Networth)		0.18	0.43	5.85
Current Ratio (Current Asset/Current Liability)		6.33	1.67	3.59

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

Corporate identity number of the company	U17111TZ1978PLC000793
Name of the company	RAJANARAYAN TEXTILES LIMITED
Address of the registered office or of the principal place of business in India of the company	70, Race Course, Coimbatore – 641018, Tamilnadu, India Email : tina@rajanarayan.com
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	Union Bank of India, 235, Oppanakara Street, PB No.8, Coimbatore – 641001, Tamil Nadu, India Email : cbemain@unionbankofindia.com
Nature of instrument creating charge	1. Hypothecation agreement of goods and debts 2. Agreement on rate of interest
Date of instrument Creating the charge	21.10.2011
Amount secured by the charge	Rs.5.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 16.50% p.a. with monthly rests Terms of repayment Adhoc limit for 90 days Margin 25% on stocks and 50% on Book Debts Extent and operation of the charge The charge operates as security for due repayment of the credit facility availed together with interest and other financial charges if any.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of Raw materials of cotton, Work in Progress and Finished goods of yarn and book debts belongs to the company and where ever situated

FIXED ASSETS

· Land

· Buildings

· Plant and Machinery and Electricals

· Furniture and Fixtures

· Vehicles

· Livestock

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.50.31
UK Pound	1	Rs.79.05
Euro	1	Rs.65.83

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	2
--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		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.