MIRA INFORM REPORT

Report Date :

14.06.2013

IDENTIFICATION DETAILS

Name :	JAIMURUGAN TEXTILES LIMITED
Registered Office :	L K Building, Suramangalam Main Road, Three Roads, Salem - 636009, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	27.02.1990
Com. Reg. No.:	18-002634
Capital Investment / Paid-up Capital :	Rs.45.000 Millions
CIN No.: [Company Identification No.]	U17111TZ1990PLC002634
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Dealer of Cotton Yarn and Fabrics.
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 5000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The company has recorded huge accumulated losses. The performance of the company is improving. External borrowing seems to be huge which acts as a threat to the liquidity. However, trade relations are fair. Business is active. Payment terms are recorded as slow. The company can be considered for business dealings 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 – 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

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 :	L. K. Building, Suramangalam Main Road, Three Roads, Salem - 636009, Tamilnadu, India
Tel. No.:	91-4286-248343
Fax No.:	Not Available
E-Mail :	psktup@yahoo.co.in jaimurugan@airtelbroadband.in
Administrative Office:	693 – 1A, RRGF Compalex, Dharapuram Road, Tirupur – 641608, Tamilnadu, India
Tel. No.:	91-421-2421612/ 13
E-Mail :	jaimurugan@airtelbroadband.in

DIRECTORS

As on: 25.09.2012

Name :	Mr. Ravichandran Venkatachalam Ganesan
Designation :	Managing Director
Address :	No.20, Town Extension, Shroff Colony, Tirupur, Coimbatore – 642128, Tamilnadu, India
Date of Birth/Age :	15.03.1956
Date of Appointment :	11.12.2003
DIN No.:	01762250
Name :	Mr. V.G. Manisekaran
Designation :	Director
Address :	No.24, Kurinji Nagar, Shroff Colony, Tirupur – 641604, Tamilnadu, India
Date of Birth/Age :	13.02.1958
Date of Appointment :	27.02.1990
DIN No.:	01762309
Name :	Mr. Vigneshraj Manisekaran
Designation :	Director
Address :	No.24, Kurinji Nagar, Shroff Colony, Tirupur – 641604, Tamilnadu, India
Date of Birth/Age :	17.11.1985
Date of Appointment :	12.12.2008
DIN No.:	02440668
Name :	Mr. Harisaran Tirupur Ravichandran
Designation :	Director
Address :	No.20, Town Extension, Shroff Colony, Tirupur, Coimbatore – 642128, Tamilnadu, India
Date of Birth/Age :	03.03.1986
Date of Appointment :	12.12.2008
DIN No.:	02440701

MAJOR SHAREHOLDERS

As on: 25.09.2012

Names of Shareholders	No. of Shares
V.G. Ravichandran	895341
V.G. Manisekaran	895258
R. Vasantharani	454676
M. Jothi Sundari	454670
G. Rajeshwari	11
T.R. Harisaran	11
M Vishnu Mahesh	11
M. Vigneshraj	11
K Rajarajeshwari	11
V.G. Ravichandran and V.G. Manishekaran	900000
V.G. Manishekaran and V.G. Ravichandran	900000
Total	4500000

Equity Share Break up (Percentage of Total Equity)

As on: 25.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Dealer of Cotton Yarn and Fabrics.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

City Union Bank Limited, 94,Court Street, Tiruppur - 641601, Tamilnadu, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWINGS
Term Loan from banks and Financial Institution	90.629	65.684
SHORT TERM BORROWINGS
Loans Repayable on Demand	65.807	59.210
Total	156.436	124.894

Banking Relations :
Auditors :
Name :	P.S.Krishnan and Company Chartered Accountants
Address :	Kurinji Towers, First Floor, 40-A, Appachi Nagar, Main Road, Tirupur – 641607, Tamilnadu, India
Tel. No.:	91-421-2227526/ 27
PAN No.:	AAFFP1860J

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4500000	Equity Shares	Rs.10/- each	Rs.45.000 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	45.000	45.000
(b) Reserves & Surplus	(30.460)	(31.001)
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
(3) Non-current liabilities
(a) long-term borrowings	140.628	110.595
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	12.599	13.599
(d) long-term provisions	0.000	0.000
(4) Current liabilities
(a) Short term borrowings	65.807	59.210
(b) Trade payables	56.626	55.034
(c) Other current liabilities	37.468	32.322
(d) Short-term provisions	0.400	4.436
TOTAL	328.068	289.195
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	135.316	117.222
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(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	78.200	10.334
(e) Other Non-current assets	0.000	0.000
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	60.467	72.148
(c) Trade receivables	41.017	74.923
(d) Cash and cash equivalents	2.097	0.526
(e) Short-term loans and advances	0.966	0.116
(f) Other current assets	10.005	13.926
TOTAL	328.068	289.195

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		45.000
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		(39.101)
NETWORTH		5.899
LOAN FUNDS
1] Secured Loans		153.411
2] Unsecured Loans		53.574
TOTAL BORROWING		206.985
DEFERRED TAX LIABILITIES		0.000
TOTAL		212.884
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		123.295
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	42.803
	Sundry Debtors	91.121
	Cash & Bank Balances	7.949
	Other Current Assets	0.000
	Loans & Advances	12.900
Total Current Assets		154.773
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	62.766
	Other Current Liabilities	0.000
	Provisions	2.418
Total Current Liabilities		65.184
Net Current Assets		89.589
MISCELLANEOUS EXPENSES		0.000
TOTAL		212.884

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	393.518	354.515	315.641
		Other Income	2.666	1.128	8.397
		TOTAL (A)	396.184	355.643	324.038
Less	EXPENSES
		Cost of material Consumed	319.704	352.027	286.035
		Changes in Inventory	30.649	(45.599)
		Employee Benefit Expenses	2.963	3.680
		Other Administrative Expenses	8.901	5.720
		TOTAL (B)	362.217	315.828	286.035
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		33.967	39.815	38.003
Less	FINANCIAL EXPENSES (D)		19.696	17.531	21.383
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		14.271	22.284	16.620
Less/ Add	DEPRECIATION/ AMORTISATION (F)		12.242	12.166	11.212
	PROFIT BEFORE TAX (E-F) (G)		2.029	10.118	5.408
Less	TAX (H)		0.400	2.000	0.902
	PROFIT AFTER TAX (G-H) (I)		1.629	8.118	4.506
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(31.001)	(39.101)	(43.607)
	Short Provision Transferred (FBT)		NA	0.000	(0.002)
	Short Provision Transferred (Income Tax)		NA	(0.018)	0.000
	BALANCE CARRIED TO THE B/S		NA	(31.001)	(39.101)
	Earnings Per Share (Rs.)		0.36	1.80	1.00

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.41	2.28	1.39
Net Profit Margin (PBT/Sales)	(%)	0.52	2.85	1.71
Return on Total Assets (PBT/Total Assets}	(%)	0.62	3.50	1.94
Return on Investment (ROI) (PBT/Networth)		0.14	0.72	0.92
Debt Equity Ratio (Total Debt /Networth)		14.20	12.13	35.09
Current Ratio (Current Asset/Current Liability)		0.71	1.07	2.37

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	No

UNSECURED LOAN:

(Rs. in Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWINGS
Term loan from Directors and related concern Party	49.999	44.912
Total	49.999	44.912

BANKERS CHARGES REPORT AS PER REGISTRY:

Corporate identity number of the company	U17111TZ1990PLC002634
Name of the company	JAIMURUGAN TEXTILES LIMITED
Address of the registered office or of the principal place of business in India of the company	L K Building, Suramangalam Main Road, Three Roads, Salem – 636009, Tamilnadu, India psktup@yahoo.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90004612
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	City Union Bank Limited, 94,Court Street, Tiruppur - 641601, Tamilnadu, India cub066@cityunionbank.com
Nature of instrument creating charge	Sanction Letter for advances dated 08.03.2012. Letter of Confirmation for extension of Mortgage.
Date of instrument Creating the charge	08.03.2012
Amount secured by the charge	Rs.561.607 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Base Rate + (Plus) 2.25%, Present - 10.75% Terms of Repayment Holiday Period - 12 months. 84 Monthly installments of Rs.545759/- each. Margin For OSL Extent and Operation of the charge Hypothecation of stock in trade and book debts. Hypothecation of machineries valued at Rs.291.160 Millions and Proposed purchase of Machinery at a total cost of Rs.13.000 Millions (owned by Harshavardhan Cotton and Synthetics Private Limited). Hypothecation of machineries valued at Rs.196.089 Millions (owned by Jai Murugan Textiles Limited)
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of stock in trade and book debts. Hypothecation of machineries valued at Rs.291.160 Millions Proposed purchase of Machinery at a total cost of Rs.13.000 Millions (owned by Harshavardhan Cotton and Synthetics Private Limited) Hypothecation of machineries valued at Rs.196.089 Millions (owned by Jai Murugan Textiles limited) EM of building at S.F.No 134/1, 2, 138,133/2, 138/1A, S.F.No 450, 451/3A, 451/7 Navani Village, puliampatti village, Salem
Date of instrument modifying the charge	30.12.2011
Particulars of the present modification	Limits enhanced to 561.607 Millions from 550.827 Millions. (Comprising of the Total limits sanctioned to M/s. Jai Murugan Textiles Limited Rs.281.401 Millions and the limits sanctioned to Harshavardhan Cotton and Synthetics Private Limited for Rs.280.206 Millions).

FIXED ASSETS:

• Loan
• Building
• Machinery
• Electric Machinery
• Furniturer
• Computer
• Tools
• Motor Vehicls
• Live Stock

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.58.41
UK Pound	1	Rs.91.62
Euro	1	Rs.78.12

INFORMATION DETAILS

Report Prepared by :

RAJ

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	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	2
--RESERVES	1~10	2
--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		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

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.