MIRA INFORM REPORT

Report Date :

20.03.2013

IDENTIFICATION DETAILS

Name :	LAKSHMI CARD CLOTHING MANUFACTURING COMPANY PRIVATE LIMITED
Registered Office :	Semmipalayam Village, Kuppuswamy Naidupuram, Palladam Taluk, Coimbatore – 641 662, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	06.01.1960
Com. Reg. No.:	18-000343
Capital Investment / Paid-up Capital :	Rs. 30.000 millions
CIN No.: [Company Identification No.]	U17219TZ1960PTC000343
TAN No.: [Tax Deduction & Collection Account No.]	CMBL03203E
PAN No.: [Permanent Account No.]	AAACL3521E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Card Clothing and Card Room Service Machineries.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 2700000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a part of Lakshmi Group of Companies. It is a well established and reputed company having fine track record. Financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered normal for business dealings at usual trade terms and condition.

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating: A
Rating Explanation	Adequate degree of safety it carry low credit risk.
Date	10.09.2012

Rating Agency Name	CRISIL
Rating	Short term rating: A1
Rating Explanation	Strongest degree of safety it carry lowest credit risk.
Date	10.09.2012

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 / Factory :	Semmipalayam Village, Kuppusway Naidupuram, Palladam Taluk, Coimbatore – 641 662, Tamilnadu
Tel. No.:	91-4255-277105 to 277 107
Fax No.:	91-4255-277107
E-Mail :	lccfinance@airtelmail.in
Website :	http://www.lakshmicardclothing.com
Corporate Office :	Lakshmi Plaza, 1089, Avanashi Road, Coimbatore – 641037, Tamilnadu, India
Tel. No.:	91-422-210205
Fax No.:	91-422-216694
E-Mail :	lakscard@md3.vsnl.net.in lccsocbe@md4.vsnl.net.in
Website:	www.lakshmicardclothing.com

DIRECTORS

As on 28.09.2012

Name :	Mr. Rangaswamy Santharam
Designation :	Managing Director
Address :	Prathishta, New No.241, Old No.183, Race Course, Coimbatore – 641018, Tamilnadu, India
Date of Birth/Age :	21.03.1937
Date of Appointment :	11.09.1964
DIN No.:	00151333
Name :	Mr. Pathy Sundaram
Designation :	Director
Address :	Rasakondalu, Circuit House Road, Coimbatore – 641018, Tamilnadu, India
Date of Birth/Age :	17.11.1949
Date of Appointment :	27.03.1975
DIN No.:	00013899
Name :	Mr. Ralph Armin Graf
Designation :	Director
Address :	Strandweg 4, Freienbach, Switzerland 8807
Date of Birth/Age :	25.08.1939
Date of Appointment :	30.11.1977
DIN No.:	01808424
Name :	Mr. Reddigari Chinna Hanumantha Reddy
Designation :	Director
Address :	Flat No.A IV/2, 45, Park Avenue, Race Course, Coimbatore – 641018, Tamilnadu, India
Date of Birth/Age :	01.06.1935
Date of Appointment :	26.06.1996
DIN No.:	00006184
Name :	Mr. Santharam Harishankar
Designation :	Whole-time director
Address :	Prathishta, New No.241, Old No.183, Race Course Road, Coimbatore – 641018, Tamilnadu, India
Date of Birth/Age :	07.05.1973
Date of Appointment :	01.04.2012
DIN No.:	00151265
Name :	Mr. Aditya Krishnapathy
Designation :	Director
Address :	Rasakondalu, 27, Circuit House Road, Coimbatore – 641018, Tamilnadu, India
Date of Birth/Age :	31.07.1986
Date of Appointment :	20.08.2008
DIN No.:	00062224

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2012

Names of Shareholders	No. of Shares
S. Thulasiammal	1980
N. Krishnaveni	9000
S. Sunitha	17870
J. Vidya	4800
D. Andal	6000
Adityakrishna Pathy	43970
K. Thangavelu and T. Kasthuri	1200
S. Vasantha and R. Sumathi	4800
R.K.K. Veenakumari	6360
R. K. K. Indira	2400
R. Santharam and S. Harishankar	990
V.J. Jayaraman	600
Asuthosh N. Munshaw	1980
M. Palaniswamy and P. Maragat Ham	1500
Prashanth Chandrran	600
B. Abhinav Narayana by M&G Beena Balasubramaniam	2361
S. Harishankar	68572
Aishwarya Lakshmi	7812
M. Thangavelu and T.Dhanalakshmi	1500
V. Mohan	2760
Sans Craintes Live Stock Private Limited, India	2640
S. Pathy and Aditya Krishna Pathy	37731
Arjun Karivaradhan	12458
Nithin Karivaradhan	12755
Hogra Holding Limited, Switzerland	45000
Anirudh Balasubramaniam	2361
Total	300000

Equity Share Break up (Percentage of Total Equity)

As on 28.09.2012

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	15.00
Bodies corporate	0.88
Directors or relatives of Directors	68.96
Other top fifty shareholders	15.16
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Card Clothing and Card Room Service Machineries.

Products :

Item Code No.	Product Description
84430000	Lickerin Wire
84483100	Mettallic Card Clothing Lickerin Flat Tops Woollen Card Clothing
84480000	C Cleaner

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Bank of Baroda Main Branch, Bank Road, Coimbatore - 641018, Tamil Nadu, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Term loans from banks	37.500	82.500
Loans taken for fixed assets	1.470	0.000
Working capital loans from banks	114.936	102.282
Loans repayable on demand	84.075	36.849
Total	237.981	221.631

Banking Relations :	--
Auditors :
Name :	Subbachar and Srinivasan Chartered Accountants
Address :	34,Kalingarayar Street, Tamilnadu, India
PAN No.:	AALFS8959F
Related Parties :	Central Engineering Works Central Nail Works Prathishta Weaving and Knitting Company Limited Infocus Marketing Services Limited Texcity Engineering LCC Investments Limited The Coimbatore Lakshmi Cotton Press Private Limited The Lakshmi Mills Company Limited Lakshmi Automatic Loom Works Limited R.Santharam Marketing Services Private Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.100/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.100/- each	Rs. 30.000 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		30.000	30.000	30.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		654.836	575.737	492.666
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		684.836	605.737	522.666
LOAN FUNDS
1] Secured Loans		237.981	221.631	329.867
2] Unsecured Loans		22.165	25.789	206.474
TOTAL BORROWING		260.146	247.420	536.341
DEFERRED TAX LIABILITIES		2.517	6.286	0.000
TOTAL		947.499	859.443	1059.007
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		316.362	309.978	346.412
Capital work-in-progress		5.781	2.829	2.266
INVESTMENT		204.542	214.174	159.226
DEFERRED TAX ASSETS		0.000	0.000	(12.913)
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	322.850	227.323	201.746
	Sundry Debtors	158.052	171.978	326.374
	Cash & Bank Balances	386.124	344.145	170.985
	Other Current Assets	21.159	18.283	15.422
	Loans & Advances	98.020	83.612	105.358
Total Current Assets		986.205	845.341	819.885
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	65.271	39.709	56.829
	Other Current Liabilities	435.827	385.334	118.074
	Provisions	64.293	87.836	81.234
Total Current Liabilities		565.391	512.879	256.137
Net Current Assets		420.814	332.462	563.748
MISCELLANEOUS EXPENSES		0.000	0.000	0.268
TOTAL		947.499	859.443	1059.007

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	938.494	1013.720	845.867
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		Office Expenses	NA	NA	NA
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		190.702	246.596	163.404
Less/ Add	DEPRECIATION/ AMORTISATION		41.788	49.136	60.055
	PROFIT BEFORE TAX		148.914	197.460	103.349
Less	TAX		26.232	53.372	34.240
	PROFIT AFTER TAX		122.682	144.088	69.109
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		393.812	325.741	319.106
Less	APPROPRIATIONS
		Proposed Dividend at @125%	37.500	52.500	45.000
		Tax on Dividend at @ 16.2225 %	6.083	8.517	7.474
		Transfer to General Reserve	12.500	15.000	10.000
	BALANCE CARRIED TO THE B/S		460.411	393.812	325.741
	EARNINGS IN FOREIGN CURRENCY		147.975	141.741	NA
	Earnings Per Share (Rs.)		408.94	480.29	230.36

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Net Profit Margin (PBT/Sales)	(%)	15.87	19.48	12.22
Return on Total Assets (PBT/Total Assets}	(%)	11.43	17.09	8.86
Return on Investment (ROI) (PBT/Networth)		0.22	0.33	0.20
Debt Equity Ratio (Total Debt/Networth)		0.38	0.41	1.03
Current Ratio (Current Asset/Current Liability)		1.74	1.65	3.20

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	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

REVIEW OF OPERATIONS

The income on the sale of Card Clothing, Card Room Accessories, Card Service Equipments, Radio Frequency Dryers, Fabrication charges and Service charges has decreased by 7.75%

PROSPECTS FOR THE CURRENT YEAR

The Textile Industry is still not recovered and facing difficult times ahead due to slow down in domestic and global markets. Efforts are being taken to increase turnover for the year by optimizing the available resources.

UNSECURED LOAN

Unsecured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. In Millions)
Deposits	22.165	25.789
Total	22.165	25.789

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17219TZ1960PTC000343
Name of the company	LAKSHMI CARD CLOTHING MANUFACTURING COMPANY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Semmipalayam Village, Kuppuswamy Naidupuram, Palladam Taluk, Coimbatore – 641 662, Tamilnadu, India Email: lccfinance@airtelmail.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80037926
Type of charge	Book debts Movable property (not being pledge) Floating charge Others (FA ARE COLLATERAL TO WC & CA ARE COLLATERAL TO TL)
Particular of charge holder	Bank of Baroda Main Branch, Bank Road, Coimbatore - 641018, Tamil Nadu, India Email: ananthv25@gmail.com
Nature of instrument creating charge	1. Supplemental composite hypothecation agreement dt. 07.01.2013 for Rs.75.000 millions
Date of instrument Creating the charge	07.01.2013
Amount secured by the charge	Rs. 373.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest For cash credit:4.50% above the base rate of the bank and the presentrate is 15%pa. For export credit: 1% over the base rate of 10.50% p.a. Presently at 11.50pa Interest payable on monthly basis Terms of Repayment Working capital repayable on demand Term loan is repayable as per sanction Margin For TL not less than 20% For others not less than 25% Extent and Operation of the charge Term loan paripassu first charge on fixed assets and second charge on current assets of the company jointly with andhra bank and working capital paripassu first charge on current assets and second charge on fixed asstes of the company jointly with andhra bank.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All plant and machinaries, stocks, book debts and other current assets. Goods stored at the factory or any other place belonging to the borrower or any other place.
Date of instrument modifying the charge	11.01.2010
Particulars of the present modification	1. Bank of Baroda Total Limits Revised From Rs.202.000 millions To Rs.219.500 millions 2 Bank of Baroda CC limit increased to Rs.75.000 millions and bills limit of Rs.5.000 millions cancellsed. 3. Total Limits Including Andhra Bank Increased From Rs.355.500 millions To Rs.373.000 millions 4. All other conditions remain the same.

FIXED ASSETS

v Tangible Assets

• Land
• Buildings
• Plant and equipment
• Electrical Machinery
• Furniture and fixtures
• Vehicles
• Office Equipments
• Computer Equipments
• Library

v Intangible Assets

• Computer Software
• Patterns
  

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.54.26
UK Pound	1	Rs.81.94
Euro	1	Rs.70.21

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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		54

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.