MIRA INFORM REPORT

Report Date :

28.05.2012

IDENTIFICATION DETAILS

Name :	S N Q S INTERNATIONAL SOCKS PRIVATE LIMITED
Registered Office :	No.19, Indira Nagar, 2^nd Street, Murungapalayam, South Tirupur, Coimbatore – 641603, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	16.10.2001
Com. Reg. No.:	18-009927
Capital Investment / Paid-up Capital :	Rs.120.000 Millions
CIN No.: [Company Identification No.]	U17309TZ2001PTC009927
PAN No.: [Permanent Account No.]	AAFCS5187E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacture of socks for reputed retail stores.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 390000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. 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/ Corporate Office :	No.19, Indira Nagar, 2^nd Street, Murungapalayam, South Tirupur, Coimbatore – 641603, Tamilnadu, India
Tel. No.:	91-421-2232838/ 2232832/ 2232833/ 2232836
Fax No.:	91-421-2232834
E-Mail :	nrdoff@gmail.com snqssintl@eth.net snqasintl@satyam.net.in
Factory :	MG Pudur Post, Sulur Railway Feeder Road, Muthugondenpudur, Coimbatore - 641406, Tamilnadu, India
Tel No.:	91-422-2360737/ 2360738
Fax No.:	91-422-2360736
Email :	info@snqssocks.com

DIRECTORS

(AS ON 02.09.2011)

Name :

Mr. Viswanathan Elangovan

Designation :

Managing Director

Address :

No.19, Indira Nagar, 2^nd Street, Murungapalayam, South Tirupur, Coimbatore – 641603, Tamilnadu, India

Date of Birth/Age :

11.12.1959

Date of Appointment :

16.10.2001

DIN No.:

00071330

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	U52110TZ1999PTC008761	S N Q S AGENCY PRIVATE LIMITED	Director	26/02/1999	26/02/1999	-	Active	NO
2	U72200TZ1999PTC008762	NETSOFT SYSTEMS PRIVATE LIMITED	Director	26/02/1999	26/02/1999	-	Active	NO
3	U17309TZ2001PTC009927	S N Q S INTERNATIONAL SOCKS PRIVATE LIMITED	Managing director	16/10/2001	16/10/2001	-	Active	NO
4	U17111TZ2003PTC010755	JEYAVISHNU SPINTEX PRIVATE LIMITED	Director	5/9/2003	5/9/2003	-	Active	NO
5	U18101TZ2004PTC011099	ATRIUM APPAREL PRIVATE LIMITED	Managing director	16/04/2004	16/04/2004	-	Active	NO
6	U17121TZ2007PTC013633	JEYAVISHNU TEX PROCESSORS PRIVATE LIMITED	Director	13/04/2007	13/04/2007	22/09/2011	Active	NO

Name :

Mr. Elangovan Santhy

Designation :

Director

Address :

No.19, Indira Nagar, 2^nd Street, Murungapalayam, South Tirupur, Coimbatore – 641603, Tamilnadu, India

Date of Birth/Age :

04.07.1961

Date of Appointment :

16.10.2001

DIN No.:

02492645

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U52110TZ1999PTC008761	S N Q S AGENCY PRIVATE LIMITED	Director	26/02/1999	26/02/1999	Active	NO
2	U17309TZ2001PTC009927	S N Q S INTERNATIONAL SOCKS PRIVATE LIMITED	Director	16/10/2001	16/10/2001	Active	NO
3	U18101TZ2004PTC011099	ATRIUM APPAREL PRIVATE LIMITED	Additional director	11/12/2009	11/12/2009	Active	NO

Name :

Mr. Velusamy Sathish Kumar

Designation :

Director

Address :

4- L. Ramasamy Nagar, Extension Kamraj Road, Varadraj, Puram, Coimbatore – 641015, Tamilnadu, India

Date of Birth/Age :

29.07.1969

Date of Appointment :

24.09.2004

DIN No.:

00472700

Name :

Mr. Krishnasamy Vishwanathan

Designation :

Director

Address :

No.19, Indira Nagar, 2^nd Street, Murungapalayam, South Tirupur, Coimbatore – 641603, Tamilnadu, India

Date of Birth/Age :

30.06.1925

Date of Appointment :

16.10.2001

DIN No.:

03598760

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 02.09.2011)

Names of Shareholders	No. of Shares
Viswanathan Elangovan	1191150
Elangovan Santhy	250
Krishnasamy Vishwanathan	100
Mullai Vishwanathan	100
D. Ravichandran	100
T M Muthukumar	100
Santhi Muthukumar	100
Velusamy Sathish Kumar	50
L. Mahesh	50
Elangovan Jayakrishna	8000
Total	1200000

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacture of socks for reputed retail stores.

Products :

Products Description	Item Code No.
Knitted Socks Made of Cotton	6115.92
Synthetic Fibers	6115.93

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Number of Machinery	Installed Capacity	Actual Production
Knitted Socks (Dozen Pairs/ Per Annum)	481	2092350	1018918

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India

718-719, Oppanakara Street, City Branch, Coimbatore - 641001, Tamilnadu, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee Term Loans Banks Secured	74.779	93.002
Working Capital Loans Banks Secured	108.911	109.974
Loans Taken for Vehicles Secured	0.187	0.250
Total	183.877	203.226
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Loans directors unsecured	0.590	0.112
Fixed deposits unsecured	10.250	10.250
Total	10.840	10.362

Banking Relations :	--
Auditors :
Name :	N. R. Doraiswami and Company Chartered Accountant
Address :	48, Race Course, Coimbatore – 641018, Tamilnadu, India
PAN No.:	ADPPR8804F
Associates :	· Clothing Caravan · S.N.Q.S. Agency (Private) Limited · Atrium Apparels (Private) Limited · S.N.Q.S. Internationals

CAPITAL STRUCTURE

(AS ON 02.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
1200000	Equity Shares	Rs.100/- each	Rs.120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1200000	Equity Shares	Rs.100/- each	Rs.120.000 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		120.000	120.000	70.000
2] Share Application Money		0.000	0.000	15.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(22.172)	(13.630)	(12.821)
NETWORTH		97.828	106.370	72.180
LOAN FUNDS
1] Secured Loans		183.877	203.226	214.570
2] Unsecured Loans		10.840	10.362	13.111
TOTAL BORROWING		194.717	213.588	227.681
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		292.545	319.958	299.860
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		159.270	178.090	181.703
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		9.019	6.442	13.922
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	126.100	126.013	106.799
	Sundry Debtors	60.223	62.873	63.580
	Cash & Bank Balances	4.122	5.314	7.475
	Other Current Assets	11.003	10.371	0.000
	Loans & Advances	28.370	63.246	70.578
Total Current Assets		229.818	267.817	248.432
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	92.131	82.825	81.674
	Other Current Liabilities	13.431	49.566	59.384
	Provisions	0.000	0.000	3.139
Total Current Liabilities		105.562	132.391	144.197
Net Current Assets		124.256	135.426	104.235
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		292.545	319.958	299.860

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	269.748	341.886	302.599
		Other Income	NA	7.746	NA
		TOTAL	NA	349.632	NA
Less	EXPENSES
		TOTAL	NA	360.352	NA
	PROFIT BEFORE TAX		(11.072)	(10.720)	(45.061)
Less	TAX		(2.531)	(11.530)	(13.999)
	PROFIT AFTER TAX		(8.541)	(0.810)	(31.062)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(13.630)	(12.820)	(18.242)
	BALANCE CARRIED TO THE B/S		(22.171)	(13.630)	(12.820)
	EARNINGS IN FOREIGN CURRENCY		NA	319.842	280.904
	Earnings Per Share (Rs.)		(7.12)	(0.83)	(44.37)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	(0.23)	NA
Net Profit Margin (PBT/Sales)	(%)	(4.10)	(3.14)	(62.43)
Return on Total Assets (PBT/Total Assets}	(%)	(2.85)	(2.40)	(10.48)
Return on Investment (ROI) (PBT/Networth)		(0.11)	(0.10)	(0.62)
Debt Equity Ratio (Total Liability/Networth)		3.07	3.25	5.15
Current Ratio (Current Asset/Current Liability)		2.18	0.66	1.72

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	Yes
No. of Employees	No
Name of Person Contacted	No
Designation of Contact person	No
Turnover of Firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-----
Estimation for coming financial year	No
Capital in the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payments Terms	No
Export/ Imports Details (If applicable)	No
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	Yes
Incorporation details is applicable	Yes
Last Accounts filed at ROC	Yes
Major Shareholders, if available	Yes

OPERATIONS

The directors to report that 1014044 dozen pairs of socks were produced during the year ended 31.03.2011 as against 1256068 dozen pairs during the year ended 31.03.2011. In addition to own production, 4874 dozen pairs of socks were also outsourced during the year (previous year 3296 dozen pairs) in order to meet the immediate demands of regular buyers. The total turnover for the year ending 31.03.2011 amounts to Rs.269.748 Millions as against Rs.341.886 Millions in the preceding financial year.

As on 31.03.2011 the Company has a total of 481 circular knitting machines with an installed capacity of 2092350 dozen pairs per annum.

CONTINGENT LIABILITIES NOT PROVIDED FOR IN THE ACCOUNTS

During July 2006, M/s. SBI Factors and commercial services Private Limited, Coimbatore Branch have sanctioned Rs.40.000 Millions limit for Bills through factoring. Limit availed as on 31.03.2011 amounts to Rs.1.023 Millions and 71610.18 GBP.

FORM 8:

This form is for	Modification of charge
Charge identification number of the modified	90001912
Corporate identity number of the company	U17309TZ2001PTC009927
Name of the company	S N Q S International Socks Private Limited
Address of the registered office or of the principal place of business in India of the company	No.19, Indira Nagar, 2nd Street Murungapalayam, South Tirupur, Coimbatore District – 641603, Tamilnadu, India omsdms@yahoo.co.in
Type of charge	Immovable property Book Debts Movable Property (not being pledge) Others: Plant and machinery
Particular of charge holder	State Bank of India Transferred from City Branch to Commercial Branch, 1443, Trichy Road, Coimbatore – 641018, Tamilnadu, India sbi.07536@sbi.co.in
Nature of description of the instrument creating or modifying the charge	1. Supplemental Agreement of Loan for increase in the overall limit (Form C.1-A) 2. Supplemental Agreement of Hypothecation of Goods and Assets for increase in the overall limits (Form C.2-A) 3. Letter regarding the grant of individual limits within the overall limit (Form C.5)
Date of instrument Creating the charge	24.09.2010
Amount secured by the charge	Rs.245.400 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest EPC, FBDN (Non), Advance against export bills sent for collection : as applicable to export credits CC (Hypn.): 12.5% p.a. Terms of Repayment Repayable on demand Margin 10% on raw materials, stocks in process and Finished goods. 25% for Advance against Export Bills sent for collection 40% on Book debts/ Receivables Extent and Operation of the charge This charge operates as security for the due repayment of loan with interest, expenses, claims and charges on an exclusive First charge basis Others Total limits of Rs.245.400 Millions consist of EPC of Rs.120.000 Millions (with FDBN sublimit of Rs.30.000 Millions and Advance against export Bills sent for collection sublimit of Rs.30.000 Millions, CC sublimit of Rs.10.000 Millions), Outstanding TL of Rs.90.400 Millions, LC (WC) of Rs.30.000 Millions and BG(WC) of Rs.5.000 Millions
Short particulars of the property charged	Raw materials, work in progress, finished goods and other Assets Book debts and Receivables All Plant and Machineries including Windmills Wind mill land measuring 72.50 cents at Poonapuram village, Dharapuram Taluk, Erode Regn. District under SF No.377/2B Industrial land measuring 3.37 acres at Neelambur Village, Palladam TK., Sulur SRD, Tirupur RD under SF No.511/A1, 511/A2,510/B,512/3 and 513/2
Date of latest modification prior to the present modification	15/07/2009
Particulars of the present modification	Total limits modified from Rs.273.500 Millions to Rs.245.400 Millions and the Charge on Raw materials, work in progress, finished goods and other Assets, Book debts and Receivables and all Plant and Machineries extended to secure Rs.245.400 Millions.

FIXED ASSETS:

· Land

· Building

· Electrical Equipments

· Electrical Fittings

· Office Equipment

· Plant and Machinery

· Other Equipment

· Computer

· Factory

· Furniture and Fixture

· 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 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.55.73
UK Pound	1	Rs.87.26
Euro	1	Rs.69.89

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
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	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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

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.