MIRA INFORM REPORT

Report Date :

03.07.2013

IDENTIFICATION DETAILS

Name :	ARTHANARI LOOM CENTRE TEXTILE PRIVATE LIMITED
Registered Office :	78, Sababathi Street, Kalarampatty, Erumapalayam, PO 636015, Salem-636015, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	25.10.1991
Com. Reg. No.:	18-003485
Capital Investment / Paid-up Capital :	Rs. 169.780 millions
CIN No.: [Company Identification No.]	U18101TZ1991PTC003485
TAN No.: [Tax Deduction & Collection Account No.]	CHEA08429B
PAN No.: [Permanent Account No.]	AABCA6496L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Yarn Dyed Woven Fabrics.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 1190000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. As claimed by Mr. Vighesh, an accountant through a call, there appears an increase in the sales turnover during 2012. However, liquidity position seems to be heavily stretched. Trade relations are fair. Business is active. Payment terms are reported as slow but correct. 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 – 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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating: “BB+”
Rating Explanation	Moderate risk of default
Date	09.05.2013

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 (PARTIAL DETAILS)

Name :	Mr. Vighnesh
Designation :	Accountant
Contact No.:	91-427-2469951
Date :	25.06.2013

LOCATIONS

Registered Office :	78, Sababathi Street, Kalarampatty, Erumapalayam Post, Salem-636015, Tamilnadu, India
Tel. No.:	91-427-2469951 (8 Lines) / 2469956
Fax No.:	91-427-2465896
E-Mail :	accounts@alctex.com office@alctex.com sbi.07201@sbi.co.in
Website :	http://www.alctex.com
Area :	4000 Sq. ft.
Location :	Owned
Factory :	5/127, Erumapalayam Main Road, Erumapalayam Post, Salem-636015, Tamilnadu, India
Tel. No.:	91-427-6542001 / 04
Fax No.:	91-427-2263435
Email :	factory@alctex.com
Washing Unit :	4/52, Panagadu Road, Erumapalayam, P O, Salem – 636015, Tamilnadu, India
Tel No.:	91-427-6532670
Email :	process@alctex.com

DIRECTORS

As on 28.09.2012

Name :

Mr. Arthanari Alagarasan

Designation :

Managing Director

Address :

80-B, Sabapathi Kadu, Kalarampatti, Erumapalayam, Salem-636015, Tamilnadu, India

Date of Birth/Age :

15.06.1958

Date of Appointment :

25.10.1991

DIN No.:

00003568

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	U18101TZ1991PTC003485	ARTHANARI LOOM CENTRE TEXTILE PRIVATE LIMITED	Managing director	25-10-91	25-10-91	-	Active	NO
2	U17111TZ2010PTC016112	ALAGARASAN SPINNING & WEAVING MILLS PRIVATE LIMITED	Director	04-06-10	04-06-10	-	Active	NO
3	U74900TZ2010PTC016428	SALEM YARN COLORING PARK PRIVATE LIMITED	Director	07-10-10	07-10-10	-	Active	NO
4	U51311TZ2003PTC014963	ARTHANARI CLOTHING PRIVATE LIMITED	Director	11-03-13	11-03-13	-	Active	NO

Name :

Mr. Alagarasan Pushpa

Designation :

Managing Director

Address :

80-B, Sabapathi Kadu, Kalarampatti, Erumapalayam, Salem-636015, Tamilnadu, India

Date of Birth/Age :

13.06.1968

Date of Appointment :

25.10.1991

DIN No.:

00003573

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	U18101TZ1991PTC003485	ARTHANARI LOOM CENTRE TEXTILE PRIVATE LIMITED	Managing director	01-04-09	25-10-91	-	Active	NO
2	U17111TZ2010PTC016112	ALAGARASAN SPINNING AND WEAVING MILLS PRIVATE LIMITED	Director	04-06-10	04-06-10	-	Active	NO
3	U51311TZ2003PTC014963	ARTHANARI CLOTHING PRIVATE LIMITED	Additional director	10-04-13	10-04-13	-	Active	NO

Name :

Mrs. Alagarasan Pushpa

Designation :

Director

Address :

80 – B, Sababathy Street, Kalarampatty, Salem – 636 015, Tamilnadu, India

Date of Birth/Age :

13.06.1968

Qualification :

B.Com

Date of Appointment :

01.04.2009

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	U18101TZ1991PTC003485	ARTHANARI LOOM CENTRE TEXTILE PRIVATE LIMITED	Managing director	01-04-09	25-10-91	-	Active	NO
2	U17111TZ2010PTC016112	ALAGARASAN SPINNING & WEAVING MILLS PRIVATE LIMITED	Director	04-06-10	04-06-10	-	Active	NO
3	U51311TZ2003PTC014963	ARTHANARI CLOTHING PRIVATE LIMITED	Additional director	10-04-13	10-04-13	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Vighnesh
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2012

Names of Shareholders	No. of Shares
M. Arthanari (HUF)	10
A. Alagarasan	813160
A. Pushpa	443575
M Arthanari	700
R Panneerselvam	200
A Adhithya (Minor)	476080
A Aswathasree (Minor)	66075
Total	1799800

As on

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Yarn Dyed Woven Fabrics.

Products :

Item Code No. (ITC Code)	Product Description
52084130	Fabrics

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Siruthozhil Branch, Chinnayyan Towers, 120/2 and 120/3, Cherry Road, Salem-636007, Tamilnadu, India

Facilities :

Cash Credit : Rs. 250.000 millions (From State Bank of India)

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long Term Borrowings
Term loans from banks	238.126	191.019
Short Term Borrowings
Working capital loans from banks	412.415	467.072
Total	650.541	658.091

Banking Relations :	--
Auditors :
Name :	JSCV and Company Chartered Accountants
Address :	25, LIC Colony ,Omalur Main Road, Salem – 636004, Tamilnadu, India
PAN No.:	AJCPS1203Q
Other Related Parties :	· Aadithya Textiles Pushpam Textiles A.P.Textiles

CAPITAL STRUCTURE

As on 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1800000	Equity Shares	Rs.100/- each	Rs. 180.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1799800	Equity Shares	Rs.100/- each	Rs. 179.980 Millions

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1800000	Equity Shares	Rs.100/- each	Rs. 180.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1697800	Equity Shares	Rs.100/- each	Rs. 169.780 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	169.780	149.780
(b) Reserves & Surplus	127.065	96.866
(c) Money received against share warrants	0.00	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	296.845	246.646
(3) Non-Current Liabilities
(a) long-term borrowings	357.566	304.235
(b) Deferred tax liabilities (Net)	36.644	29.354
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	11.701	6.800
Total Non-current Liabilities (3)	405.911	340.389
(4) Current Liabilities
(a) Short term borrowings	412.415	467.072
(b) Trade payables	129.543	144.558
(c) Other current liabilities	79.534	28.283
(d) Short-term provisions	18.000	18.333
Total Current Liabilities (4)	639.492	658.246
TOTAL	1342.248	1245.281
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	581.968	487.097
(ii) Intangible Assets	3.796	0.375
(iii) Capital work-in-progress	65.962	0.473
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	270.389	259.827
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	28.244	25.889
Total Non-Current Assets	950.359	773.661
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	158.264	208.292
(c) Trade receivables	174.858	230.768
(d) Cash and cash equivalents	22.182	17.541
(e) Short-term loans and advances	22.048	5.522
(f) Other current assets	14.537	9.497
Total Current Assets	391.889	471.620
TOTAL	1342.248	1245.281

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		149.780
2] Share Application Money		0.000
3] Reserves & Surplus		61.057
4] (Accumulated Losses)		0.000
NETWORTH		210.837
LOAN FUNDS
1] Secured Loans		428.962
2] Unsecured Loans		99.319
TOTAL BORROWING		528.281
DEFERRED TAX LIABILITIES		36.010
TOTAL		775.128
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		474.082
Capital work-in-progress		0.401
INVESTMENT		2.289
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	199.757
	Sundry Debtors	180.521
	Cash & Bank Balances	7.892
	Other Current Assets	14.806
	Loans & Advances	68.830
Total Current Assets		471.806
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	149.654
	Other Current Liabilities	19.587
	Provisions	4.209
Total Current Liabilities		173.450
Net Current Assets		298.356
MISCELLANEOUS EXPENSES		0.000
TOTAL		775.128

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1500.000 (Approx imately)	1450.000 (Approx imately)	1023.600
		Other Income	NA	NA	6.700
		TOTAL (A)	NA	NA	1030.300
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	NA	NA	911.159
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		195.688	156.974	119.141
Less	FINANCIAL EXPENSES (D)		72.921	54.761	43.579
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		122.767	102.213	75.562
Less/ Add	DEPRECIATION/ AMORTISATION (F)		66.692	57.507	54.201
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		56.075	44.706	21.361
Less	TAX (H)		18.000	17.900	4.005
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		38.075	26.806	17.356
Less	Prior year Income tax liability		0.614	0.435	(0.046)
Less	Deferred tax liability		7.290	(6.655)	0.942
Less	Mat credit availed/w.ff		0.000	1.500	3.422
Less	Mat credit excess claim w/off		0.000	0.000	0.120
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		75.768	44.242	31.324
	BALANCE CARRIED TO THE B/S		105.939	75.768	44.242
	EARNINGS IN FOREIGN CURRENCY		216.995	106.200	88.293
	Earnings / (Loss) Per Share (Rs.)		0.22	0.18	0.12

Particulars	31.03.2013
Sales Turnover (Approximately)	1700.000

Expected Sales (2013-2014) : Rs. 2000.000 millions

The above information has been parted by Mr. Vighnesh (Accountant)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	NA	1.69
Net Profit Margin (PBT/Sales)	(%)	NA	NA	2.09
Return on Total Assets (PBT/Total Assets}	(%)	5.57	4.54	2.26
Return on Investment (ROI) (PBT/Networth)		0.19	0.18	0.10
Debt Equity Ratio (Total Debt/Networth)		2.59	3.13	2.51
Current Ratio (Current Asset/Current Liability)		0.61	0.72	2.72

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	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last four years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	Yes
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]	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

UNSECURED LOANS

Particulars	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. In Millions)
Long Term Borrowings
Deposits	0.058	0.061
Loans and advances from related parties	118.143	113.155
Loans taken for vehicles	1.239	0.000
Total	119.440	113.216

CONTINGENT LIABILITIES:

(Rs. in millions)

PARTICULARS	31.03.2011	31.03.2012
a) Estimated amount of contracts remaining to be Executed on capital a/c and not provided for (net of Advances)	7.550	28.200
b). Counter Guarantees given to Bank	0.246	0.230
c). Sales Tax Liabilities on Dyeing Charges disputed and stayed by High Court, Chennai	Not quantifiable	Not quantifiable
d).Gratuity liability for employees of less than 5 years service	0.600	2.067
g)Duty liability under EPCG Scheme pending fulfillment of export obligation (without interest)	61.461	85.558

FIXED ASSETS

·

Land

Buildings

Factory building

Plant and Equipment

Factory Equipments

Other plant and Equipment

Furniture and Fixtures

Vehicles

Office Equipment

Computer Equipments

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 records 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] 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.59.41
UK Pound	1	Rs.90.38
Euro	1	Rs.77.61

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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		47

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

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.