MIRA INFORM REPORT

Report Date :

17.08.2013

IDENTIFICATION DETAILS

Name :	SHRI SHAKTHI WEAVING MILLS PRIVATE LIMITED
Registered Office :	213/34, Sivasakthi Colony, Ganapathy, Coimbatore – 641006, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	13.05.2005
Com. Reg. No.:	18-011795
Capital Investment / Paid-up Capital :	Rs. 13.800 millions
CIN No.: [Company Identification No.]	U17115TZ2005PTC011795
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Textile Fabrics.
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (32)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 89000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has recorded a decline in its operating profit as well as turnover due to the depressed and volatile market conditions. The company seems to have modest scale of operations. However, trade relations are fair. Business is active. Payment terms are reported as slow but correct. The company can be considered 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Ms. Menaka
Designation :	Accounts Department
Contact No.:	91-4254-263535
Date :	14.08.2013

LOCATIONS

Registered Office / Factory :	213/34, Sivasakthi Colony, Ganapathy, Coimbatore – 641006, Tamilnadu, India
Tel. No. :	91-422-2011666
Fax No. :	Not Avilable
E-Mail :	sangeeth@md3.vsnl.net.in sswmil@gmail.com
Location :	Owned
Factory :	SF No. 278/2, Annur to Kovai Road, Kariyampalayam post, Annur, Coimbatore – 641653, Tamilnadu, India
Tel. No. :	91-4254-263535
E-Mail :	shrishakthiweaving@hotmail.com

DIRECTORS

As on 07.09.2012

Name :	Mr. Sakthibalan Paramasivam
Designation :	Director
Address :	213/34, Sivasakthi Colony, Ganapathy, Coimbatore – 641006, Tamilnadu, India
Date of Appointment :	13.05.2005
DIN No. :	00135725
Name :	Mr. Neelakandan Paramasivam
Designation :	Director
Address :	213/34, Sivasakthi Colony, Ganapathy, Coimbatore – 641006, Tamilnadu, India
Date of Birth/Age :	13.03.1933
Date of Appointment :	13.05.2005
DIN No. :	02687804
Name :	Ms. Shanthi Paramasivam
Designation :	Director
Address :	213/34, Sivasakthi Colony, Ganapathy, Coimbatore – 641006, Tamilnadu, India
Date of Birth/Age :	28.03.1969
Date of Appointment :	13.05.2005
DIN No. :	02687827
Name :	Ms. Rukmani Paramasivam
Designation :	Director
Address :	213/34, Sivasakthi Colony, Ganapathy, Coimbatore – 641006, Tamilnadu, India
Date of Birth/Age :	10.04.1945
Date of Appointment :	13.05.2005
DIN No. :	02688167

KEY EXECUTIVES

Name :	Ms. Menaka
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 07.09.2012

Names of Shareholders	No. of Shares
P. Sakthi Balan	10360
N. Paramasivam	13360
P. Rukmani	12190
S. Santhi	90
Sri Vasudeva Textiles Limited, India	25000
C. Sarathamani	14500
S. Umadevi	4350
CAV Cotton Mills Limited, India	25150
S. Mandhagini Thulasi	8000
Shri Mookambiga Spinning Mills Limited, India	25000
Total	138000

As on 07.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	54.45
Directors or relatives of Directors	45.55
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Textile Fabrics.
Products :	Grey Cloth
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

· CAV Cotton Mills Limited

· Guntur Spinning Mills Private Limited

· Mohan Spintex India Limited

· Sri Vasudeva Textiles Limited

· Speed Drawing

· Speed Knotting Service

· Navkar Group

· TRK Textile India (Private) Limited

· Sree Murugan Plastics

· S.V. Works

Customers :

End Users

· Ambiga Syn Feb (Private) Limited

· Indo Count Industries Limited

· Krishna Fabrics

· Kumaran Textile Mill

· Sarva Sidhi Fabrik Mills

· Shantanu Textiles

· Shree Parasvanath Textiles

· Trident Textiles

· Vineesh Fabrics

No. of Employees :

50 (Approximately)

Bankers :

· Canara Bank Limited, Oppanakara Street Branch,152 Oppanakara Street, Coimbatore - 641001, Tamilnadu, India

· The Dhanalakshmi Bank Limited, 461, Vivekananda Road, Ramnagar, Coimbatore - 641009, Tamilnadu, India

Facilities :

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Term Loans from Bank
The Canara Bank Limited	1.026	0.000
The Dhanalakshi Bank Limited	0.000	4.096
Term Loans from Others
From Other Parties
Tata Capital – Vehicle Loan	0.296	0.591
SHORT TERM BORROWINGS
Loan repayable on Demand from Bank
Canara Bank – Cash Credit	19.961	0.000
Dhanalakshmi Bank – Cash Credit	0.000	10.111
Total	21.283	14.798

Note:

Long term borrowings

Term loan is repayable in equal monthly installments along with Ihe interest The term loans are secured by creation oJ p--|nitnhlH mnrlg&ge by depositor QtZedeed offertory Land and building and secured by hypothecation of entire machinery, stock of raw materials, Wip, Finished Goods and Book debts

Term loan is repayable in equal monthly installments along with the interest. The term loans are secured by creation of equitable mortgage by deposit of title deed of factory Land and building and secured by hypothecatiori of entire machinery, stock of raw materials, Wip, Finished Goods and Book debts

Vehicle loan is repayable In equal [rrarrrhJy fnsraiknents inclusive of interest and secured by hypothecation of the assets financed primarily

Short term borrowings

Cash credit are secured by hypothecation of Company Land and Building, plant and Machinery both existing and future, and guaranteed by all the directors of the company

Cash credit are secured by hypothecation of Company Land and Building, plant and Machinery both existing and future, end guaranteed by all the directors of the company

Banking Relations :	--
Auditors :
Name :	Tamil and Company Chartered Accountants
Address :	Room No 34 S.A.Building, Dr. Rajendraprasad Road, Tatabad, Coimbatore – 641012, Tamilnadu, India
Tel. No. :	91-422-2490792
Mobile No. :	91-9843344591
PAN No. :	AAGPT2042R
Company in which KMP / Relatives of KMP can exercise significant influence :	Trident Textiles

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
150000	Equity Shares	Rs.100/- each	Rs. 15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
138000	Equity Shares	Rs.100/- each	Rs. 13.800 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	13.800	13.800
(b) Reserves & Surplus	5.194	3.931
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	3.308	4.764
Total Shareholders’ Funds (1) + (2)	22.302	22.495
(3) Non-Current Liabilities
(a) long-term borrowings	1.722	4.687
(b) Deferred tax liabilities (Net)	1.430	1.468
(c) Other long term liabilities	0.045	0.044
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	3.197	6.199
(4) Current Liabilities
(a) Short term borrowings	19.961	10.111
(b) Trade payables	9.918	10.212
(c) Other current liabilities	3.794	3.694
(d) Short-term provisions	0.371	0.832
Total Current Liabilities (4)	34.044	24.849
TOTAL	59.543	53.543
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	26.905	25.653
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	1.163	3.861
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	28.068	29.514
(2) Current assets
(a) Current investments	0.000	0.0000
(b) Inventories	20.036	19.003
(c) Trade receivables	8.972	1.932
(d) Cash and cash equivalents	0.613	1.346
(e) Short-term loans and advances	1.854	1.748
(f) Other current assets	0.000	0.000
Total Current Assets	31.475	24.029
TOTAL	59.543	53.543

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		10.000
2] Share Application Money		9.546
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		(0.809)
NETWORTH		18.737
LOAN FUNDS
1] Secured Loans		14.086
2] Unsecured Loans		1.645
TOTAL BORROWING		15.731
DEFERRED TAX LIABILITIES		1.456
TOTAL		35.924
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		26.401
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5.356
	Sundry Debtors	14.089
	Cash & Bank Balances	0.385
	Other Current Assets	0.000
	Loans & Advances	0.808
Total Current Assets		20.638
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	10.296
	Other Current Liabilities	0.460
	Provisions	0.377
Total Current Liabilities		11.133
Net Current Assets		9.505
MISCELLANEOUS EXPENSES		0.018
TOTAL		35.924

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL	NA	96.795	NA
Less	EXPENSES
		TOTAL	NA	87.895	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		4.931	8.900	4.778
Less/ Add	DEPRECIATION/ AMORTISATION		3.235	3.066	2.888
	PROFIT BEFORE TAX		1.696	5.834	1.889
Less	TAX		0.433	1.094	0.434
	PROFIT AFTER TAX		1.263	4.740	1.455
	Earnings Per Share (Rs.)		9.15	34.35	--

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	4.90	NA
Return on Total Assets (PBT/Total Assets}	(%)	2.91	11.74	4.02
Return on Investment (ROI) (PBT/Networth)		0.08	0.26	0.10
Debt Equity Ratio (Total Debt/Networth)		0.97	0.66	0.84
Current Ratio (Current Asset/Current Liability)		0.92	0.97	1.85

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last one year	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	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
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	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10295554	15/03/2013 *	46,650,000.00	CANARA BANK	OPPANAKARA STREET BRANCH, 152 OPPANAKARA STREET, COIMBATORE - 641001, TAMILNADU, INDIA	B72326655

* Date of charge modification

BUSINESS OPERATIONS

During the year the company recorded a decline in the operating profit as well as turnover due to the depressed and volatile market conditions and the power crisis. However, the current year so far seems to be reasonably belter on the market front and the directors are hopeful of achieving better results.

UNSECURED LOANS

Particulars	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. In Millions)
LONG TERM BORROWINGS
C. Jaya Kumar	0.400	0.000
Total	0.400	0.000

FIXED ASSETS

· Factory Land

· Borewell

· Factory Building

· Plant and Machinery

· Electrical and Fittings

· Furniture and Fixtures

· Canteen Vessals

· Tools and Equipments

· Computer

· Vehicle – Four Wheeler

· Vehicle – Two Wheeler

· Weighing Scale

· Office Appliances

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.61.82
UK Pound	1	Rs.96.57
Euro	1	Rs.82.45

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		32

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.