MIRA INFORM REPORT

Report Date :

25.04.2013

IDENTIFICATION DETAILS

Name :	DIVYALAKSHMI TEXTILES PRIVATE LIMITED
Registered Office :	36, Vadugarkottai Street, Aruppukottai, Virudhunagar District – 626 101, Tamilnadu .
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	18.03.2005
Com. Reg. No.:	18-055700
Capital Investment / Paid-up Capital :	Rs. 80.905 Millions
CIN No.: [Company Identification No.]	U17112TN2005PTC055700
PAN No.: [Permanent Account No.]	AACCD1718K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Cotton Yarn
No. of Employees :	Not Available

RATING & COMMENTS

	MIRA’s Rating :			B (28)
RATING			STATUS		PROPOSED CREDIT LINE
26-40		B	Capability to overcome financial difficulties seems comparatively below average.		Small

Maximum Credit Limit :	USD 104000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appear huge accumulated losses recorded by the company and the external borrowing is also huge, which acts as a threat to the company’s liquidity. However, trade relation are reported to be fair. Business is active, Payments are slow. The company can be considered for business dealing with great caution.

NOTES:

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	D (Term Loan) ( Suspended)
Rating Explanation	Default reason for suspension – Absence of the requisite information from the company.
Date	03.10.2012

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 Office :	36, Vadugarkottai Streetaruppukottai, Virudhunagar District-626101, Tamilnadu, India
Tel. No.:	91-4566-240921
Mobile No.:	91-4566-240704
E-Mail :	geejeyaraman@yahoo.co.in divyalakshmitextiles_india@yahoo.co.in
Administrative office :	70, Alagai Nagar, Rajapalayam-626117, Tamilnadu, India
E-Mail :	jayajothi@jayajothi.com
Factory 1 :	Survey No. 15/2A, B, C, 16/1A, 1B, 17/4, 17/5, Kulasekaranallur Village, Thiruchuli Road, Ramasamy Nagarm Aruppukottai-626 159, Tamilnadu, India
Godown :	Kulasekaranallur, Thiruchuli Road, Ramasamy Nagar Post, Aruppukottai-626159, Tamilnadu, India
Tel. No.:	91-4566-291669 / 240921
Fax No.:	91-4566-240704

DIRECTORS

As on 15.09.2012

Name :	Mr. Kannan Ramasamy Naicker
Designation :	Director
Address :	Flat No.9, Geegee Castle, 186 Avvaishanmugam Salai, Gopalapuram, Chennai-600086, Tamilnadu, India
Date of Birth/Age :	09.08.1956
Date of Appointment :	18.03.2005
DIN No.:	00356817
Name :	Mr. Gokul Kannan
Designation :	Director
Address :	Flat No.9, Geegee Castle, 186 Avvaishanmugam Salai, Gopalapuram, Chennai-600086, Tamilnadu, India
Date of Birth/Age :	12.09.1981
Date of Appointment :	18.03.2005
DIN No.:	00391940
Name :	Ms. Divya Kannan
Designation :	Director
Address :	Flat No.9, Geegee Castle, 186 Avvaishanmugam Salai, Gopalapuram, Chennai-600086, Tamilnadu, India
Date of Birth/Age :	25.10.1985
Date of Appointment :	18.03.2005
DIN No.:	00391981
Name :	Ms. Krishnaveni Kannan
Designation :	Director
Address :	Flat No.9, Geegee Castle, 186 Avvaishanmugam Salai, Gopalapuram, Chennai-600086, Tamilnadu, India
Date of Birth/Age :	16.03.1957
Date of Appointment :	18.03.2005
DIN No.:	00420020
Name :	Shrinivas Arunkrishna
Designation :	Director
Address :	S-10, Srinivasan, 4-A Pangajan, House Street Thani, Thani Allingaram, Tamilnadu – 625 531, India
Date of Birth/Age :	26.07.1984
Date of Appointment :	03.08.11
DIN No.:	03592020

MAJOR SHAREHOLDERS

As on 15.09.2012

Names of Shareholders	No. of Shares	Percentage of Holding
Mr. Kannan Ramasamy Naicker	2022625	25.00
Mr. Gokul Kannan	2022625	25.00
Ms. Divya Kannan	2022625	25.00
Ms. Krishnaveni Kannan	2022625	25.00
Total	8090500	100.00

Equity Share Break up (Percentage of Total Equity)

As on 15.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cotton Yarn.

Products :

ITC CODE NO.	PRODUCT/ SERVICES DESCRIPTION
5205	Cotton Yarn

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

The South Indian Bank Limited

Anut complex, Pandalgudi Road Junction, Aruppikottai, Virudhunagar District Tamil Nadu - 606 101, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Rupee term loan from bank	251.251	290.000
Working capital loan from bank	95.048	94.345
Total	346.299	384.345

Banking Relations :	--
Auditors :
Name :	G.JEYARAMAN Chartered Accountant
Address :	No.5A, Gowshika Mansion, S.S.Colony, North Gate, Madurai-10, Tamilnadu, India
PAN No.:	AAWPJ2929D

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity shares	Rs. 10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8090500	Equity shares	Rs. 10/- each	Rs. 80.905 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		80.905	80.905	0.200
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		(54.911)	(-56.709)	0.000
4] (Accumulated Losses)		0.000	0.000	(69.610)
NETWORTH		25.994	24.196	(69.410)
LOAN FUNDS
1] Secured Loans		346.299	384.325	423.094
2] Unsecured Loans		0.000	0.000	1.100
TOTAL BORROWING		346.299	384.325	424.194
DEFERRED TAX LIABILITIES		28.296	26.342	0.000
TOTAL		400.589	434.863	354.784
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		304.525	332.288	364.102
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		56.494	56.234	50.500
DEFERRED TAX ASSETS		0.000	0.000	(23.554)
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	95.630	146.973	74.096
	Sundry Debtors	55.754	54.618	48.248
	Cash & Bank Balances	2.549	3.947	3.017
	Other Current Assets	0.000	0.930	14.576
	Loans & Advances	26.157	28.749	16.104
Total Current Assets		180.090	242.551	235.217
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	128.774	112.192	59.067
	Other Current Liabilities	10.796	155.012	40.622
	Provisions	0.950	4.317	0.217
Total Current Liabilities		140.520	196.210	271.521
Net Current Assets		39.570	46.341	(36.304)
MISCELLANEOUS EXPENSES		0.000	0.000	0.040
TOTAL		400.589	434.863	354.784

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
		Gross Turnover	392.106	522.004	335.694
	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		92.993	108.775	108.750
Less	FINANCIAL EXPENSES		59.823	55.949	52.344
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		33.170	52.826	56.407
Less/ Add	DEPRECIATION/ AMORTISATION		28.692	31.814	35.073
	PROFIT BEFORE TAX		4.478	21.012	21.333
Less	TAX		3.147	8.112	9.437
	PROFIT AFTER TAX		13.51	12.900	118.96
	TOTAL EARNINGS		10.121	2.561	NA
	Earnings Per Share (Rs.)		0.17	1.59	1.47

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.34	2.47	3.54
Net Profit Margin (PBT/Sales)	(%)	1.14	4.03	6.35
Return on Total Assets (PBT/Total Assets}	(%)	0.92	3.66	3.56
Return on Investment (ROI) (PBT/Networth)		0.17	0.87	(0.31)
Debt Equity Ratio (Total Debt /Networth)		13.32	15.88	(6.11)
Current Ratio (Current Asset/Current Liability)		1.25	1.24	0.87

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

FORECAST:

The present situation is flattering to the textiles industry the demand for the yarn will be expected shortly since the coming cotton season sympathetic to the industry and there by the yarn price will be a gung ho.

The increase in yarn price and reduction in cotton price will influence the profit and your directors are expecting this season will be favorable to the Textile industry and expectant of presenting better result in the coming year.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17112TN2005PTC055700
Name of the company	DIVYALAKSHMI TEXTILES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	36, Vadugarkottai Streetaruppukottai, Virudhunagar District-626101, Tamilnadu, India Email: jayaapk@yahoo.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80038861
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	The South Indian Bank Limited Anut Complex, Pandalgudi Road Junction, Aruppukottai, Virudhunagar District - 626101, Tamil Nadu, India Email: akshayasri23@gmail.com br0005@sib.co.in
Nature of instrument creating charge	1. Agreement of hypothecation. 2. Memorandum of deposit of title deeds.
Date of instrument Creating the charge	10.01.2012
Amount secured by the charge	Rs. 564.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 1. CCOL: - BR + 4.00% i.e. Presently 14.50% p.a. 2. TL & WCTL: - BR + 4.50% i.e. Presently 15.00% p.a. 3. FBP/D :- BR + 0.50% i.e., Presently 11.00% p.a. 4. UBD (LC)/ DBD(LC) :- On a bill to bill basis Terms of Repayment WCTL :- Repayment to be done bt 36 equal monthly installments. Interest to be serviced as and when debited in the account. Margin 1. CCOL : For Stock - 25% For Book Debts – 30% ( for book debts Not older than 90 days) 2. LC : 10% Extent and Operation of the charge : The charge operates to secure the loan amount of Rs. 546.000 Millions. Hypothecation of goods, machinery, book debts, vehicles and other assets and entire current assets and fixed assets of the company. EM of immovable property in the name of M/S. DIVYALAKSHMI TEXTILES PRIVATE LIMITED
Short particulars of the property or asset(s) charged (including complete address and location of the property)	1. Hypothecation of goods, machinery, book debts, vehicles and other assets and entire current assets and fixed assets of the company. 2. EM of immovable property with all improvements in the name of M/S DIVYALAKSHMI TEXTILES PRIVATE LIMITED situated at Ulasekaranallur village, Aruppukottai Taluk, Virudhunagar 3. (Condt) As more fully described in the supplemental memorandum of deposit of title deeds.
Date of instrument modifying the charge	17.04.2010
Particulars of the present modification	The overall existing loan limit if Rs. 540.000 Millions has been enhanced to Rs. 564.000 Millions by addition of new facilities. The other terms and conditions continue to remain the same.

FIXED ASSETS:

· Land

· Building

· Plant and Equipment

· Factory Equipment

· Testing Equipments

· Furniture and Fixture

· Vehicles

· Motor Vehicle

· Computers

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. 54.16
UK Pound	1	Rs. 82.45
Euro	1	Rs. 70.70

INFORMATION DETAILS

Report Prepared by :

VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	-
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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.