MIRA INFORM REPORT

Report Date :

09.01.2013

IDENTIFICATION DETAILS

Name :	SRI PARAMESWARI SPINNING MILLS PRIVATE LIMITED
Registered Office :	Doon Cotton Road, Pandalgadi, Rammand-626113, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.07.1980
Com. Reg. No.:	18-008322
Capital Investment / Paid-up Capital :	Rs. 277.945 millions
CIN No.: [Company Identification No.]	U18101TN1980PTC008322
TIN No.:	33845800472
PAN No.: [Permanent Account No.]	AABCS5356F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Yarn.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 734000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Reserves of the company appear to be low. Huge external borrowings recorded by the company which seems to be increasing over the years. 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 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

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

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 / Factory :	Doon Cotton Road, Pandalgadi, Rammand-626113, Tamilnadu, India
Tel. No.:	91-4566-261233
Fax No.:	91-4566-261330
E-Mail :	parameswari.spsm@yahoo.co.in

DIRECTORS

As on 17.06.2011

Name :

Mr. Dinakaran Gopal

Designation :

Director

Address :

19(Old No.11), Pillaimar Street, Aruppukottai-626101, Tamilnadu, india

Date of Birth/Age :

25.06.1939

Date of Appointment :

31.08.1995

DIN No.:

00096494

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	U24294TN1988PTC016163	SRI MAGENTA CHEMICALS PRIVATE LIMITED	Director	23-09-89	23-09-89	-	Active	NO
2	U18101TN1980PTC008322	SRI PARAMESWARI SPINNING MILLS PRIVATE LIMITED	Director	31-08-95	31-08-95	-	Active	NO
3	U17111TN1994PTC026608	JAYA VELU SPINNING MILLS PRIVATE LIMITED	Director	24-09-09	01-06-09	-	Active	NO

Name :

Mr. Gopalakrishnan Rajaram

Designation :

Director

Address :

No. 31, S.V. Veerapper Street, Aruppukottai – 626101, Tamilnadu, India

Date of Birth/Age :

21.02.1934

Date of Appointment :

05.07.1996

DIN No.:

00519122

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	U52599TN1992PTC022306	PAARAGAN PAPER PRIVATE LIMITED	Director	09-03-92	09-03-92	-	Active	NO
2	U17111TN1994PTC026608	JAYA VELU SPINNING MILLS PRIVATE LIMITED	Director	24-01-94	24-01-94	-	Active	NO
3	U18101TN1980PTC008322	SRI PARAMESWARI SPINNING MILLS PRIVATE LIMITED	Director	05-07-96	05-07-96	-	Active	NO
4	U17111TN2004PTC054680	JAYAVELU TEXTILES EXPORT PRIVATE LIMITED	Director	18-11-04	18-11-04	-	Strike off	NO
5	U65999TN2002PTC048553	GLOBAL CARD SYSTEMS PRIVATE LIMITED	Director	30-01-07	30-01-07	-	Active	NO
6	U72200TN2003PTC050662	CAC SOFTWARE CONSULTANCY PRIVATE LIMITED	Director	31-01-07	31-01-07	-	Active	NO
7	U17120TN2011PTC078983	JAYAANU SPINNING MILLS PRIVATE LIMITED	Director	28-01-11	28-01-11	-	Active	NO
8	U17120TN2011PTC078982	JAYAARUN SPINNING MILLS PRIVATE LIMITED	Director	28-01-11	28-01-11	-	Active	NO
9	U30006TN1998PTC039730	VERSATILE CARD TECHNOLOGY PRIVATE LIMITED	Director	01-07-11	01-07-11	-	Active	NO

Name :

Mr. Kitchanan Subbarajulu

Designation :

Director

Address :

I - 185, Bye Pass Road, Kanjanaicken Patti, Aruppukottai-626101, Tamilnadu, India

Date of Birth/Age :

21.09.1947

Date of Appointment :

07.06.1994

DIN No.:

00668917

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	U18101TN1980PTC008322	SRI PARAMESWARI SPINNING MILLS PRIVATE LIMITED	Director	07-06-94	07-06-94	-	Active	NO
2	U17111TN1994PTC026608	JAYA VELU SPINNING MILLS PRIVATE LIMITED	Director	20-09-10	16-11-09	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 17.06.2011

Note: Major Shareholders detail file attached

Allottees as on 30.03.2012

Name of Allottees	No. of shares
Mr. Arunkumar Veluchamy	490000
Total	490000

Equity Share Break up (Percentage of Total Equity)

As on 17.06.2011

Category	Percentage
Directors or relatives of Directors	99.89
Other top fifty shareholders	0.11
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Yarn.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Canara Bank, Aruppukottai Branch, Sathyamurthy Bazaar, Aruppukottai- 626101, Tamilnadu, India

ING Vysya Bank Limited, 58, Good Shed Street, Madurai - 625001, Tamil Nadu, India

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	562.685	498.695
Working capital loans banks secured	287.026	265.142
Loans taken for vehicles secured	0.420	1.659
Total	850.131	765.496
Unsecured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee term loans others unsecured	0.000	11.980
Foreign currency loans others unsecured	0.000	16.687
Loans directors unsecured	16.000	48.000
Other debt unsecured	0.002	0.002
Total	16.002	76.669

Banking Relations :	--
Auditors :
Name :	V Ramakrishnan Chartered Accountants
Address :	54/11 V.P.Rathinasamy Nadar Road Near Income-Tax Office Bibikulam, Madurai-625002, Tamilnadu, India
PAN No.:	ABUPR2415D

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3490000	Equity Shares	Rs.100/- each	Rs. 349.000 Millions
10000	Preference Shares	Rs.100/- each	Rs. 1.000 Million
	Total		Rs. 350.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1559351	Equity Shares	Rs.100/- each	Rs. 155.935 Millions
100	Preference Shares	Rs.100/- each	Rs. 0.010 Million
	Total		Rs. 155.945 Millions

After 17.06.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3490000	Equity Shares	Rs.100/- each	Rs. 349.000 Millions
10000	Preference Shares	Rs.100/- each	Rs. 1.000 Million
	Total		Rs. 350.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 277.945 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		155.945	155.945	155.945
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		27.574	23.839	39.597
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		183.519	179.784	195.542
LOAN FUNDS
1] Secured Loans		850.131	765.496	586.117
2] Unsecured Loans		16.002	76.669	65.362
TOTAL BORROWING		866.133	842.165	651.479
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1049.652	1021.949	847.021
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		687.268	672.774	584.717
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		27.500	27.500	27.500
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	337.539	209.183	101.654
	Sundry Debtors	188.360	90.200	80.940
	Cash & Bank Balances	10.405	9.948	13.807
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	103.829	97.337	139.366
Total Current Assets		640.133	406.668	335.767
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	84.839	57.738	91.191
	Other Current Liabilities	207.655	18.192	1.565
	Provisions	12.755	9.063	8.207
Total Current Liabilities		305.249	84.993	100.963
Net Current Assets		334.884	321.675	234.804
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1049.652	1021.949	847.021

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	NA	NA	NA
		Other Income	NA	NA	NA
		TOTAL (A)	NA	NA	NA
Less	EXPENSES (B)		NA	NA	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		214.008	166.908	NA
Less	FINANCIAL EXPENSES (D)		99.079	91.416	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		114.929	75.492	NA
Less/ Add	DEPRECIATION/ AMORTISATION (F)		110.347	91.250	69.563
	PROFIT BEFORE TAX (E-F) (G)		4.582	(15.758)	NA
Less	TAX (H)		0.848	0.000	NA
	PROFIT AFTER TAX (G-H) (I)		3.734	(15.758)	(43.887)
	Earnings Per Share (Rs.)		2.39	(10.10)	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Return on Total Assets (PBT/Total Assets}	(%)	0.35	(1.46)	NA
Return on Investment (ROI) (PBT/Networth)		0.02	(0.09)	NA
Debt Equity Ratio (Total Liability/Networth)		6.38	5.16	3.85
Current Ratio (Current Asset/Current Liability)		2.10	4.78	3.33

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	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
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

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U18101TN1980PTC008322
Name of the company	SRI PARAMESWARI SPINNING MILLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Doon Cotton Road, Pandalgadi, Rammand-626113, Tamilnadu, India Email: parameswari.spsm@yahoo.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10065948
Type of charge	· Immovable property · Book debts · Movable property (not being pledge)
Particular of charge holder	Canara Bank, Aruppukottai Branch, Sathyamurthy Bazaar, Aruppukottai- 626101, Tamilnadu, India Email: rkblal1301@gmail.com
Nature of instrument creating charge	Supplemental Common Hypothecation Agreement
Date of instrument Creating the charge	18.03.2011
Amount secured by the charge	Rs. 1186.200 millions
Brief of the principal terms an conditions and extent and operation of the charge	Terms of Repayment 1.OCC/ODBD/PC/PCFC/FDB/FBE/FLC/ILC/BG/BG(ST) - Repayable on Demand 2.Term Loan I, II & TL -III(Under TUF Scheme) - There is no change in the existing sanction stipulation Margin 1. Stock - 25% Spares - 40% 2. ODBD - Book Debts - 50% 3. PC/PCFC/ILC/FLC/BG - 10% Extent and Operation of the charge The Charge operates as EXCLUSIVE FIRST CHARGE in favour of the Bank for an Overall Limit of Rs.1186.200 millions together with interest, cost, charges and other expenses that may accrue and/or be debited to the Company's accounts from time to time. Others 1. Period of LC - 90 days 2. Usance for LCs - 180 days 3. Period of BG - 10 years including 2 years claim period 4. PC/PCFC Period and Usance period for FDB/FBE/BRD - 90 DAYS 5. Cover period for Book Debts - 60 days
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Extension of Hypothecation of Stocks, Book Debts, Plant and Machinery and Other movable assets Existing Equitable Mortgage of Immovable Properties continues to secure the Overall Limit existing prior to this modification, i.e. Rs.1169.800 millions
Date of instrument modifying the charge	12.11.2010
Particulars of the present modification	Overall Limit is increased from Rs.1169.800 millions to Rs.1186.200 millions Extension of Hypothecation, as Exclusive First Charge, of Stocks, Receivables/ Book Debts, Machineries and other Movable Assets to secure the enhanced Overall Limit of Rs.1186.200 millions together with interest, cost,charges and other expenses that may accrue and/or be debited to the Company's accounts from time to time. Other terms and conditions, including other existing securities, remain unaltered.

FIXED ASSETS

· Land

· Building

· Machinery

· Electrical Equipment

· 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 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 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.55.33
UK Pound	1	Rs.89.05
Euro	1	Rs.72.57

INFORMATION DETAILS

Report Prepared by :

MRI

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	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
TOTAL		26

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

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.