MIRA INFORM REPORT

Report Date :

01.04.2013

IDENTIFICATION DETAILS

Name :	SUDHAN SPINNING MILLS PRIVATE LIMITED
Registered Office :	207, Mangalam Road, Tirpur, Coimbatore – 641604, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	16.03.1988
Com. Reg. No.:	002135
Capital Investment / Paid-up Capital :	Rs.6.000 Millions
CIN No.: [Company Identification No.]	U17111TZ1988PTC002135
TAN No.: [Tax Deduction & Collection Account No.]	CMBS05085D
PAN No.: [Permanent Account No.]	AADCS0670E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Hosiery Yarn.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 6970000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is well established company having fine track record. There appear some dip in the turnover during 2012 and it has incurred loss. However, financial position of the company appears to be sound. Trade relations are reported as decent. Business is active. Payments are reported to be regular correct and as per commitments. The company can be considered good 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 – 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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	BBB + [Long Term]
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	December 2012

Rating Agency Name	ICRA
Rating	A2+ [Short Term]
Rating Explanation	Strong degree of safety and low credit risk.
Date	December 2012

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ 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 / Sales Office :	207, Mangalam Road, Tirpur, Coimbatore-641604, Tamilnadu, India
Tel. No.:	91-421-2205031/32/35
Fax No.:	91-421-2205036
E-Mail :	ssmgroup@gmail.com ssmgroup@vsnl.com ssmgroup@airtelmail.in
Mill / Factory / Administrative Office :	Taluka Thadicombu, District Dindigul-624709, Tamilnadu, India
Tel No.:	91-451-2557001/02
Fax No.:	91-451-2557225/259

DIRECTORS

AS ON 27.09.2012

Name :	Mr. Kandaswamy Indira
Designation :	Managing Director
Address :	207, Mangalam Road, Tirpur, Coimbatore – 641604, Tamilnadu, India
Date of Birth/Age :	20.05.1954
Date of Appointment :	01.10.1996
Election Commission Identity Card No.:	GDR2736148

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	U17111TZ1988PTC002135	SUDHAN SPINNING MILLS PRIVATE LIMITED	Managing director	01/10/1996	01/10/1996	Active	NO
2	U17111TZ1998PTC008633	SRI MATHA SPINNING MILLS PRIVATE LIMITED	Managing director	02/11/1998	02/11/1998	Active	NO

Name :	Mr. Veluswamy Pallapalayam Sennimalai Gounder
Designation :	Director
Address :	207, Mangalam Road, Tirpur, Coimbatore – 641604, Tamilnadu, India
Date of Birth/Age :	05.06.1935
Date of Appointment :	26.03.2004
Election Commission Identity Card No.:	GDR2736122

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	U17111TZ1980PTC000935	SRI SHANMUGAVEL MILLS PRIVATE LIMITED	Managing director	25/07/1980	25/07/1980	Active	NO
2	U17111TZ1993PTC004480	PRABHU SPINNING MILLS PRIVATE LIMITED	Managing director	11/10/1996	11/10/1996	Active	NO
3	U17111TZ1998PTC008633	SRI MATHA SPINNING MILLS PRIVATE LIMITED	Director	02/11/1998	02/11/1998	Active	NO
4	U17111TZ1995PTC005944	ADISANKARA SPINNING MILLS PRIVATE LIMITED	Director	21/09/1999	21/09/1999	Active	NO
5	U17111TZ2001PTC009831	VEDHA SPINNING MILLS PRIVATE LIMITED	Director	17/07/2001	17/07/2001	Active	NO
6	U17111TZ1982PTC001195	SIVARAJ SPINNING MILLS PRIVATE LIMITED	Director	26/03/2004	26/03/2004	Active	NO
7	U17111TZ1988PTC002240	SRI VELAYUDHASWAMY SPINNING MILLS PRIVATE LIMITED	Director	26/03/2004	26/03/2004	Active	NO
8	U17111TZ1988PTC002135	SUDHAN SPINNING MILLS PRIVATE LIMITED	Director	26/03/2004	26/03/2004	Active	NO
9	U17111TZ2006PTC012582	SHRI SIDDHI VINAYAGA TEX INDIA PRIVATE LIMITED	Director	15/02/2006	15/02/2006	Active	NO
10	U17111TZ2006PTC012729	PRASSANNA SPINNING MILLS PRIVATE LIMITED	Director	24/04/2006	24/04/2006	Active	NO
11	U17111TZ2007PTC013690	SRI SANKARI YARNS PRIVATE LIMITED	Director	04/05/2007	04/05/2007	Active	NO
12	U29199TZ2007PTC014002	RENERGY EQUIPMENTS INDIA PRIVATE LIMITED	Managing director	25/10/2007	25/10/2007	Active	NO

Name :	Mr. Kandaswamy Shanmugavel
Designation :	Director
Address :	207, Mangalam Road, Tirpur, Coimbatore – 641604, Tamilnadu, India
Date of Birth/Age :	04.03.1973
Date of Appointment :	11.10.1999
Election Commission Identity Card No.:	GDR27361463

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	U17111TZ1995PTC005944	ADISANKARA SPINNING MILLS PRIVATE LIMITED	Director	27/09/1996	27/09/1996	Active	NO
2	U17111TZ1980PTC000935	SRI SHANMUGAVEL MILLS PRIVATE LIMITED	Director	11/10/1999	11/10/1999	Active	NO
3	U17111TZ1988PTC002135	SUDHAN SPINNING MILLS PRIVATE LIMITED	Director	11/10/1999	11/10/1999	Active	NO
4	U17111TZ1988PTC002240	SRI VELAYUDHASWAMY SPINNING MILLS PRIVATE LIMITED	Director	07/09/2000	07/09/2000	Active	NO
5	U29199TZ2007PTC014002	RENERGY EQUIPMENTS INDIA PRIVATE LIMITED	Director	25/10/2007	25/10/2007	Active	NO

Name :	Mr. Muthu Karthikeya Harihara Sudhan Shanmuga Sundaram
Designation :	Director
Address :	48, Kangeyam Road, Tirupur – 641604, Tamilnadu, India
Date of Birth/Age :	13.05.1972
Date of Appointment :	26.02.1996
Election Commission Identity Card No.:	TN/21/114/0183332

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	U17111TZ1988PTC002135	SUDHAN SPINNING MILLS PRIVATE LIMITED	Director	26/02/1996	26/02/1996	-	Active	NO
2	U15499TZ2007PTC013630	SADA FOODS INDIA PRIVATE LIMITED	Director	13/04/2007	13/04/2007	12/10/2007	Active	NO
3	U17111TZ2007PTC013690	SRI SANKARI YARNS PRIVATE LIMITED	Managing director	04/05/2007	04/05/2007	-	Active	NO

Name :	Ms. Geetha Rathinasabapathy
Designation :	Director
Address :	5, MGR Nagar, 1^st Street, P N Road, Tirupur – 641602, Tamilnadu, India
Date of Birth/Age :	03.01.1970
Date of Appointment :	07.09.2000

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	U17111TZ1988PTC002135	SUDHAN SPINNING MILLS PRIVATE LIMITED	Director	07/09/2000	07/09/2000	Active	NO
2	U17111TZ2006PTC012729	PRASSANNA SPINNING MILLS PRIVATE LIMITED	Director	24/04/2006	24/04/2006	Active	NO

Name :	Mr. Chennimalaigounder Kandasamy
Designation :	Director
Address :	207, Mangalam Road, Tirpur, Coimbatore – 641604, Tamilnadu, India
Date of Birth/Age :	11.07.1943
Date of Appointment :	26.03.2004
Election Commission Identity Card No.:	GDR2736114

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	U17111TZ1982PTC001195	SIVARAJ SPINNING MILLS PRIVATE LIMITED	Managing director	19/09/1996	19/09/1996	Active	NO
2	U17111TZ1995PTC005944	ADISANKARA SPINNING MILLS PRIVATE LIMITED	Managing director	29/09/1999	29/09/1999	Active	NO
3	U17111TZ1980PTC000935	SRI SHANMUGAVEL MILLS PRIVATE LIMITED	Director	26/03/2004	26/03/2004	Active	NO
4	U17111TZ2001PTC009831	VEDHA SPINNING MILLS PRIVATE LIMITED	Director	26/03/2004	26/03/2004	Active	NO
5	U17111TZ1998PTC008633	SRI MATHA SPINNING MILLS PRIVATE LIMITED	Director	26/03/2004	26/03/2004	Active	NO
6	U17111TZ1993PTC004480	PRABHU SPINNING MILLS PRIVATE LIMITED	Director	26/03/2004	26/03/2004	Active	NO
7	U17111TZ1988PTC002240	SRI VELAYUDHASWAMY SPINNING MILLS PRIVATE LIMITED	Director	26/03/2004	26/03/2004	Active	NO
8	U17111TZ1988PTC002135	SUDHAN SPINNING MILLS PRIVATE LIMITED	Director	26/03/2004	26/03/2004	Active	NO
9	U17111TZ2006PTC012582	SHRI SIDDHI VINAYAGA TEX INDIA PRIVATE LIMITED	Director	15/02/2006	15/02/2006	Active	NO
10	U17111TZ2006PTC012729	PRASSANNA SPINNING MILLS PRIVATE LIMITED	Director	24/04/2006	24/04/2006	Active	NO
11	U17111TZ2007PTC013690	SRI SANKARI YARNS PRIVATE LIMITED	Director	04/05/2007	04/05/2007	Active	NO
12	U29199TZ2007PTC014002	RENERGY EQUIPMENTS INDIA PRIVATE LIMITED	Director	25/10/2007	25/10/2007	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.09.2012

Names of Shareholders	No. of Shares
P S Veluswamy	5400
C Kandaswamy	5400
V Dhanalakshmi	5400
K Indira	5400
S Shanthi	4800
R Geetha	4800
R umamaheshwari	4800
S Kavitha	3000
K Shanmugavel	5400
K Sivaraj	5400
J Jayalakshmi	4800
S M K Sudhan	1800
S Veena Abirami	1800
S Gowthami	1800
TOTAL	60000

AS ON 27.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Hosiery Yarn.

PRODUCTION STATUS [AS ON 31.03.2012]

Particulars	Unit	Installed Capacity
Spinning Division
Spindles	Nos.	50400
Wind Mill Division Captive Use:
Wind Electric Generators	Nos.	25
Power Generation Capacity	M.W.	16.95
Sale to EB:
Wind Electric Generators	Nos.	9
Power Generation Capacity	M.W.	7.65

ACTUAL PRODUCTION:

Particulars	Unit	Actual Production
Spinning Division
a) Own
Yarn	Kgs.	9536077
b) Through Job work
OE Yarn	Kgs.	1528711
Knitted Fabric	Kgs.	659667
Woven Fabric	Mtrs.	--
Wind Mill Division
a) Power generation - for captive use	Units.	28098744
b) Power generation - for sale to EB	Units.	11784080

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· The Lakshmi Vilas Bank Limited, No.47/2, Pensioner Street, Dindigul-624001, Tamil Nadu, India

· State Bank of India, SME Branch, No.1, Salai Road, Dindigul-624001, Tamilnadu, India

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Term loans from banks	478.325	329.300
Working capital loans from banks	119.069	1151.219
TOTAL	597.394	1480.519

Banking Relations :	--
Auditors :
Name :	T. R. Ramanathan Chartered Accountant
Address :	Bharathi Theertha Krupa, 343, B.S. Sundaram Road, Tirupur-641601, Tamilnadu, India
PAN No:	ACSPR0567R
Associates :	· Sri Matha Spinninq Mills Private Limited [U17111TZ1998PTC008633] · Sivaraj Spinning Mills Private Limited [U17111TZ1982PTC001195] · Adisankara Spinning Mills Private Limited [U17111TZ1995PTC005944] · Sri Velayudhaswamy Spinning Mills Private Limited [U17111TZ1988PTC002240] · Vedha Spinning Mills Private Limited [U17111TZ2001PTC009831] · Renergy Equipments India Private Limited [U29199TZ2007PTC014002]

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
60000	Equity Shares	Rs.100/- each	Rs.6.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
60000	Equity Shares	Rs.100/- each	Rs.6.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		6.000	6.000	6.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1737.567	1745.900	1432.700
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1743.567	1751.900	1438.700
LOAN FUNDS
1] Secured Loans		597.394	1480.519	647.106
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		597.394	1480.519	647.106
DEFERRED TAX LIABILITIES		138.195	57.747	44.541
TOTAL		2479.156	3290.166	2130.347
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		711.599	598.998	314.080
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		8.237	0.020	0.020
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	288.578	1209.786	566.841
	Sundry Debtors	234.532	404.197	230.874
	Cash & Bank Balances	12.413	3.406	19.657
	Other Current Assets	0.435	0.571	0.000
	Loans & Advances	1440.405	1231.637	1297.155
Total Current Assets		1976.363	2849.597	2114.527
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	46.627	58.569	225.738
	Other Current Liabilities	165.611	94.395	0.000
	Provisions	4.805	5.485	72.542
Total Current Liabilities		217.043	158.449	298.280
Net Current Assets		1759.320	2691.148	1816.247
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2479.156	3290.166	2130.347

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue From Operations	4847.600	5895.300	3460.487
		Other Income	NA	NA	109.918
		TOTAL (A)	NA	NA	3570.405
Less	EXPENSES
		Raw Material Consumed			1054.644
		Power and Fuel			74.461
		Payment to and Provisions for Remuneration and other benefits to employees	NA	NA	41.023
		Other manufacturing Expenses			144.503
		Administrative and Selling			114.515
		Increased / (Decreased) In stock			1810.888
		TOTAL (B)	NA	NA	3240.034
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		297.694	621.969	330.371
Less	FINANCIAL EXPENSES (D)		162.455	109.922	65.320
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		135.239	512.047	265.051
Less/ Add	DEPRECIATION/ AMORTISATION (F)		99.212	67.805	58.268
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		36.027	444.242	206.783
Less	TAX (H)		44.360	131.042	52.483
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(8.333)	313.200	154.300
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	0.000
	BALANCE CARRIED TO THE B/S		NA	NA	154.300
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	3759.755	4340.819	2653.451
	IMPORTS
		Raw Materials	28.680	16.919	43.813
		Capital Goods	0.000	39.029	0.118
	TOTAL IMPORTS		28.680	55.948	43.931
	Earnings / (Loss) Per Share (Rs.)		(139)	5220	2572

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	NA	4.32
Net Profit Margin (PBT/Sales)	(%)	NA	NA	5.97
Return on Total Assets (PBT/Total Assets}	(%)	1.34	12.88	8.51
Return on Investment (ROI) (PBT/Networth)		0.02	0.25	0.14
Debt Equity Ratio (Total Debt/Networth)		0.34	0.85	0.45
Current Ratio (Current Asset/Current Liability)		9.11	13.70	7.09

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]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	Yes
34]	External Agency Rating, if available	Yes

PERFORMANCE HIGHLIGHTS:

During the year, textile industry passed through an unprecedented slump, the worst ever scenario unheard in recent past and not witnessed during the tenure of our experience in this field. At the backdrop of historical high cost of raw materials, frequent and severe disruptions in power coupled with fallen demand in Tirupur market due to closure of many dyeing units resulting in lesser utilization of installed machinery, the company’s operations had a stunning setback as evidenced in the net operating results. In general, on account of depletion in the value of carried over inventory owing to sudden and steep fall in cotton rates in addition to panic selling by almost all the spinning units, the gap between the selling rate and input cost widened heavily resulting in huge cash loss in the textile manufacturing sectors.

During the year 2011-12, spinning units in south India faced an extremely grim situation which lasted for about nine months and impacted very much on the fate of a number of units. Nevertheless, considering the highly difficult and challenging industrial atmosphere prevailed during the year gone by and consequential damages by erosion in net worth besides mounting stress in honoring commitments as has been experienced and reported in the industry, the company averted cash loss mainly because of substantial flow from our strategic investments made in earlier years in power projects.

During the year 2011-12, revenue from operations at Rs.4847.600 millions recorded a negative growth of about 18% as against Rs.5895.300 millions in the previous year. In the production front, yarn production declined by about 19% over the previous year. On account of optimum running of wind electric generators upon completion of the projects undertaken in 2011-12, production in wind energy division registered positive growth by about 36%.

The sign of modest optimistic turnaround developed at the end of the year is now moving progressively and showing satisfactory improvement in the year under progress. Further, under the present scenario of continuing power crises for optimizing consumption of captive wind power generation, the directors are taking requisite efforts to provide grid power supply through dedicated feeder line to have uninterrupted power which will facilitate maximum adjustment of captive wind power generation besides reducing dependability on diesel generators.

With the strategic measures like timely planning in procuring and keeping raw material holding at a safer level to contain financial overheads, reducing high cost diesel power generation during power cuts by obtaining dedicated feeder line and optimum captive wind power adjustment the directors are hopeful of presenting improved and positive achievements in the year under progress.

In view of the loss incurred during the year in addition to increased financial commitments to the bankers besides slow and phased out recovery of the slowdown and to improve the basic fiscal strength of the company, the directors have not made any recommendation for declaration of dividend for the year.

FINANCE:

Term loans sanctioned to the company for the projects undertaken during the previous year have been effectively utilized by the company in a phased manner based on the progress of the projects and the projects have been completed during 2011-12 with optimum utilization of sanctioned loans from the bankers. Company has availed a term loan of Rs.250.000 millions from LVB during the year 2011-12 to augment working capital resources with a view to have sufficient long term sources. Financial commitments in respect of term loans to the bankers of the company have been promptly serviced during the year without any default. Working capital limits sanctioned by the bankers were effectively utilized. Working capital cash credit limits of SBI and AXIS Bank have been fully settled during the year and limits were cancelled.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Creation of charge
Corporate identity number of the company	U17111TZ1988PTC002135
Name of the company	SUDHAN SPINNING MILLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	207, Mangalam Road, Tirpur, Coimbatore-641604, Tamilnadu, India
Type of charge	Movable Property [not being pledge]
Particular of charge holder	State Bank of India, SME Branch, No.1, Salai Road, Dindigul-624001, Tamilnadu, India Email: sbi.12758@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Agreement of Hypothecation of goods and assets
Date of instrument Creating the charge	11.02.2013
Amount secured by the charge	Rs.20.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest No interest for CEL limit of Rs.2.00 crore Terms of Repayment Limit to be reviewed every year. Extent and Operation of the charge The Charge operates as security for Credit Exposure Limit for Forward Contract of Rs.2.00 crore sanctioned to the company.
Short particulars of the property charged	Hypothecation of one Suzlon make 1250 KW wind electric generator installed at SF No.920/3 of Munduvelampatti, Dharapuram Taluk of Tirupur District.

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 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.54.39
UK Pound	1	Rs.82.32
Euro	1	Rs.69.54

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	7
--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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		53

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.