MIRA INFORM REPORT

Report Date :

24.08.2013

IDENTIFICATION DETAILS

Name :	NAGAMMAL MILLS PRIVATE LIMITED (w. e. f. 13.06.2007)
Formerly Known As :	NAGAMMAL MILLS LTD
Registered Office :	Vetturnimadam Nagercoil, Nagercoil – 629003, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	08.12.1955
Com. Reg. No.:	18-003505
Capital Investment / Paid-up Capital :	Rs.7.000 Millions
CIN No.: [Company Identification No.]	U17111TN1955PTC003505
TAN No.: [Tax Deduction & Collection Account No.]	MRIN00267B
PAN No.: [Permanent Account No.]	AAACL6399N
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturers of ring spun carded and combed, single and doubled greige yarns for knitting and weaving applications, from cotton.
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 300000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has incurred a loss in the current year. However, 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 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 – 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

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.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	B+
Rating Explanation	The risk proves credit quality. It carries very high credit risk.
Date	30.11.2012

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/ Mill :	Vetturnimadam Nagarcoil, Nagarcoil – 629003, Tamilnadu, India
Tel. No.:	91-4652-230080/ 81
Fax No.:	91-4652-230635
E-Mail :	nagammalmills@gmail.com
Website :	www.nagammalmills.com

DIRECTORS

As on: 03.09.2012

Name :

Mrs. Latha Kumaraswamy

Designation :

Managing Director

Address :

Pioneer Kumaraswamy Bhavan, Vetturnimadam Nagercoil, Kanyakumari, Nagercoil – 629003, Tamilnadu, India

Date of Birth/Age :

08.07.1968

Date of Appointment :

29.09.2006

PAN No.:

AREPK1395H

DIN No.:

00449001

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17111TN1955PTC003505	NAGAMMAL MILLS PRIVATE LIMITED	Managing director	29/09/2006	19/05/2006	-	Active	NO
2	U55101TN2010PTC077608	J K HOTELS PRIVATE LIMITED	Director	28/03/2011	28/03/2011	-	Active	NO

Name :

Mr. Thomas Mariasebastin

Designation :

Director

Address :

64/B – 1 Christu Nagar Road, Sayakaran Parappuvilai, Vetturnimadam Nagercoil, Kanyakumari, Nagercoil – 629003, Tamilnadu, India

Date of Birth/Age :

21.02.1942

Date of Appointment :

14.10.2006

DIN No.:

01220409

Name :

Mr. Padmanabhan Kumaraswamy

Designation :

Managing Director

Address :

Pioneer Kumaraswamy Bhavan, Vetturnimadam Nagercoil, Kanyakumari, Nagercoil – 629003, Tamilnadu, India

Date of Birth/Age :

09.06.1961

Date of Appointment :

27.12.1989

PAN No.:

ADVPP0407A

DIN No.:

01600774

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17111TN1955PTC003505	NAGAMMAL MILLS PRIVATE LIMITED	Managing director	27/12/1989	27/12/1989	-	Active	NO
2	U55101TN2010PTC077608	J K HOTELS PRIVATE LIMITED	Director	28/03/2011	28/03/2011	-	Active	NO

Name :

Mr. Varun Kumaraswamy

Designation :

Director

Address :

Pioneer Kumaraswamy Bhavan, Vetturnimadam Nagercoil, Kanyakumari, Nagercoil – 629003, Tamilnadu, India

Date of Birth/Age :

13.08.1990

Date of Appointment :

29.09.2011

DIN No.:

03623532

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 03.09.2012

Names of Shareholders	No. of Shares
K. M. Chacko	50
N. Thangammal	500
Jacob Joseph	5
V. Akasaperumal Pillai	10
Issac Swaminathan	50
Piramuthu Senihi Ammal	10
Umaya Parvathy Nagammal	10
N. K. Ramaswamy	50
N. Satha	100
C. Rajaram Chenthiperumal	100
R. Ramalinga Iyer Rmakrishnaier	2
S. Nagamani Sastha	50
N. Rajammal Babu	3541
K. Ganapathy Kesavaperumal	5
K. Sivathanu Kesavaperumal	3
Y. S. Newton Yesuvadiyan	5
R. Harichandran Retinaswamy	5
S. Kesavaperumal Pillai	5
N. Wilsin Apollos Nesamani	100
M. Dorairaj Pillai	50
R. Jeya Nagammal	200
N. Kesavaraj	100
ChIthambarathanu Nagarajan	5
Nalini G. Katre and Indira Renganathan	60
M. Abraham Isaac	5
Thiraviam. Ganapathy	200
Ganapathy Nagarajan	34
Sharumathy Raja Babu	20
Jaiwanikumari Babu	6
Meenakumari Vadivel	50
Subramonian Ravikumari	5
Jesolit Samuel	5
Varun P. Kumara Swamy	400
Vikram Kumara Swamy	400
Padmanabhan Kumaraswamy	57209
Latha Kumaraswamy	1000
Mariasebastin Thomas	50
Rajkumar Bananagammal	5600
Total	70000

Equity Share Break up (Percentage of Total Equity)

As on: 03.09.2012

Category	Percentage
Directors or relatives of directors	84.00
Other top fifty shareholders	16.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of ring spun carded and combed, single and doubled greige yarns for knitting and weaving applications, from cotton.

Products :

Item Code No. (ITC Code)	Product Description
5205	Cotton Yarn

PRODUCTION STATUS As on 31.03.2012

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Finished Goods (Yarn)	Kgs	NA	NA	528147
Spindles	NA	30260	24188	NA

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Karur Vysya Bank Limited, Nagarcoil Branch, 47, Court Road, Nagarcoil – 629002, Tamilnadu, India

· Axis Bank Limited, Nagercoil, Tamilnadu, India

· State Bank of India, Nagercoil, Tamilnadu, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Term Loan From KVD Nagercoil – For Machineries	54.365	58.079
Term Loan From State Bank of India, KVD Limited Bank, Axis Bank Limited Nagercoil – For Vehicle	1.847	1.700
Less: Current Maturities of Long Term Debt	(18.580)	(17.160)
Loans Repayable on Demand Working Capital loan open cash credit from the Karur Vysya Bank and LC facility in the same Bank	46.276	51.144
Total	83.908	93.763

Banking Relations :	--
Auditors :
Name :	R. Yagnasubramanian Chartered Accountants
Address :	35 Naicker New Street, Madurai – 625001, Tamilnadu, India
PAN No.:	AAAPY8457F

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
105000	Equity Shares	Rs.100/- each	Rs. 10.500 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
80000	Equity Shares	Rs.100/- each	Rs. 8.000 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
70000	Equity Shares	Rs.100/- each	Rs. 7.000 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		7.000	7.000	7.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		89.797	107.269	100.184
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		96.797	114.269	107.184
LOAN FUNDS
1] Secured Loans		83.908	93.763	105.573
2] Unsecured Loans		2.105	0.032	2.500
TOTAL BORROWING		86.013	93.795	108.073
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		182.810	208.064	215.257
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		138.515	145.908	157.502
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.003	0.003	0.003
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	43.926	70.192	35.429
	Sundry Debtors	8.534	7.267	9.942
	Cash & Bank Balances	6.771	1.869	2.581
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	19.639	20.241	26.897
Total Current Assets		78.870	99.569	74.849
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	9.258	1.429	13.633
	Other Current Liabilities	23.320	31.376	1.396
	Provisions	2.000	4.611	2.068
Total Current Liabilities		34.578	37.416	17.097
Net Current Assets		44.292	62.153	57.752
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		182.810	208.064	215.257

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2012
SALES
	Turnover	195.106
	Other Income	NA
	TOTAL	NA
EXPENSES
	Office Expenses
	Administrative Expenses
	Advertising Expenses
	TOTAL	214.134
PROFIT BEFORE TAX		16.628
TAX		0.000
PROFIT AFTER TAX		16.628
EARNINGS IN FOREIGN CURRENCY
	Export Earnings	5.110
TOTAL EARNINGS		5.110

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Net Profit Margin (PBT/Sales)	(%)	8.52	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	7.65	NA	NA
Return on Investment (ROI) (PBT/Networth)		0.17	NA	NA
Debt Equity Ratio (Total Debt/Networth)		0.89	0.82	1.01
Current Ratio (Current Asset/Current Liability)		2.28	2.66	4.38

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 one years	Yes
12]	Profitability for last one 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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
Loans from directors	2.105	0.032
Total	2.105	0.032

PERFORMANCE:

The outlook for future did not augur well last year. Things have turned out far worse than expected. Even when the overall power situation in the state was somewhat comfortable, power for industries had always been an allusive luxury, particularly for textile industries. Now, as even households are experiencing power shortage, the fate of textile industries can very well be understood. Combined with this perennial problem at its peak, the shrinking demand for yarn and rise in other input costs, basic survival itself has become a question mark.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10412092	14/03/2013 *	6,000,000.00	KARUR VYSYA BANK	NAGERCOIL BRANCH, 47,COURT ROAD, NAGERCOIL, TAMILNADU - 629001, INDIA	B71009393
2	10354804	19/03/2012	83,600,000.00	Karur Vysya Bank Limited	NAGARCOIL BRANCH, 47,COURT ROAD, NAGARCOIL, TAMILNADU - 629002, INDIA	B39359500
3	10315871	12/09/2011	10,000,000.00	The Karur Vysya Bank Limited	NAGERCOIL BRANCH, 47, COURT ROAD, NAGERCOIL, TAMIL NADU - 629001, INDIA	B24631822
4	10060646	26/06/2007	30,000,000.00	THE KARUR VYSYA BANK LIMITED	47, KALLUVEETIL SHYRAS CENTRE, COURT ROAD, NAGERC OIL, TAMIL NADU - 629001, INDIA	A18890467
5	10045672	08/03/2007	30,000,000.00	THE KARUR VYSYA BANK LIMITED	POST BOX NO.21, ERODE ROAD, KARUR, TAMILNADU - 39002, INDIA	A13583588
6	80031681	22/05/2007 *	2,000,000.00	THE KARUR VYSYA BANK LIMITED	POST BOX NO.21, ERODE ROAD, KARUR, TAMILNADU - 639002, INDIA	A16566176
7	80027592	18/03/2006	28,000,000.00	KARUR VYSYA BANK LIMITED	47 I FLOOR KALLUVITTIL SHYRAN CENTRE, COURT ROAD, NAGERCOIL, TAMILNADU - 629001, INDIA	-
8	80056846	18/03/2006	28,000,000.00	KARUR VYSYA BANK LIMITED	47 I FLOOR KALLUVITTIL SHYRAS CENTRE, COURT ROAD, NAGERCOIL, TAMILNADU - 629001, INDIA	-
9	80056845	09/03/2006	22,500,000.00	KARUR VYSYA BANK LIMITED	47 I FLOOR KALLUVITTIL SHYRAS CENTRE, COUR ROAD, NAGERCOIL, TAMILNADU - 629001, INDIA	-
10	80021425	30/11/2012 *	50,000,000.00	KARUR VYSYA BANK	NAGERCOIL BRANCH, 47,COURT ROAD,, NAGERCOIL, TAMIL NADU - 629001, INDIA	B66436775

Note: * Date of charge modification

CONTINGENT LIABILITIES

(Rs in millions)

Particular	31.03.2012	31.03.2011
In respect of demands by E. S. I and PF authorities	0.227	0.461
In respect of other labour matters	0.569	0.022

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Vehicles

· Library

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.64.69
UK Pound	1	Rs.100.80
Euro	1	Rs.86.30

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.