MIRA INFORM REPORT

Report Date :

07.05.2012

IDENTIFICATION DETAILS

Name :	SJLT SPINNING MILLS PRIVATE LIMITED
Registered Office :	No 12/4, New Giri Road, Giri Road, First Street, T Nagar, Chennai - 600017, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	08.09.2004
Com. Reg. No.:	18-062030
Capital Investment / Paid-up Capital :	Rs. 70.000 Millions
CIN No.: [Company Identification No.]	U17111TN2004PTC062030
PAN No.: [Permanent Account No.]	AAICS9451L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Cotton Yarn
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 650000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has incurred a loss during current year. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealing 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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Term Loan Facility = B
Rating Explanation	High risk of default
Date	18.04.2012

Rating Agency Name	ICRA
Rating	Fund Based Facility = A4
Rating Explanation	Minimal degree of safety it carry very high credit risk.
Date	18.04.2012

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 :	No 12/4, New Giri Road, Giri Road, First Street, T Nagar, Chennai - 600017, Tamilnadu, India
Tel. No.:	91-44-28111644
Fax No.:	91-44-28111643
E-Mail :	ganravi@gmail.com
Website :	http://www.sjlt.in
Administrative Office :	285, Trichy Road, Namakkal - 637002, Tamilnadu, India
Tel. No.:	91-4286-234477 / 234497 / 230188 / 222938
Fax No.:	91-4286–232813
E-Mail :	sjltindia@dataone.in info@sjlt.in
Factory :	NH - 7, Namakkal- Karur Main Road, Pillaikalathur, Paramathi (PO), Paramathi Velur (Tk), District Namakkal - 637207, Tamilnadu, India
Tel. No.:	91-4286-267687 / 267777 / 267719 / 267729
Fax No.:	91-4286–267717
E-Mail :	mail@sjlt.in

DIRECTORS

As on 29.09.2012

Name :

Mr. Veerappan Selvadurai

Designation :

Managing Director

Address :

286, Trichy Road, Nanakkal – 637001, Tamilnadu, India

Date of Birth/Age :

06.04.1956

PAN No. :

AAAHV6935M

Date of Appointment :

01.12.2006

DIN No.:

00002241

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	U23203TZ1996PTC006840	SJLT BOTTLING PLANT PRIVATE LIMITED	Director	11-01-96	11-01-96	-	Active	NO
2	U17115TN2001PTC047542	SJLT TEXTILES PRIVATE LIMITED	Director	02-08-01	02-08-01	-	Active	NO
3	U55209TN2002PTC049634	ANDAMAN HOTELS PRIVATE LIMITED	Director	25-11-02	25-11-02	-	Active	YES
4	U17111TN2004PTC062030	SJLT SPINNING MILLS PRIVATE LIMITED	Managing director	08-09-04	08-09-04	-	Active	NO
5	U60210TZ2006PTC012794	SRI JAGATHEESAN LORRY TRANSPORTS PRIVATE LIMITED	Director	26-05-06	26-05-06	-	Active	NO
6	U14102TZ2006PTC012792	SJLT GRANITES PRIVATE LIMITED	Director	26-05-06	26-05-06	-	Active	NO
7	U01730TZ2003PTC010632	POPPYS KNITWEAR PRIVATE LIMITED	Director	28-02-07	28-02-07	16-11-09	Active	NO

Name :

Mr. Jagatheesan Veerappan

Designation :

Whole-Time Director

Address :

286, Trichy Road, Nanakkal – 637001, Tamilnadu, India

Date of Birth/Age :

19.05.1953

PAN No. :

AAAHV6936L

Date of Appointment :

01.12.2006

DIN No.:

00002239

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	U23203TZ1996PTC006840	SJLT BOTTLING PLANT PRIVATE LIMITED	Director	11-01-96	11-01-96	-	Active	NO
2	U23203TZ1996PTC006839	OM SAKTHI BOTTLING PLANT PRIVATE LIMITED	Director	11-01-96	11-01-96	-	Active	NO
3	U17115TN2001PTC047542	SJLT TEXTILES PRIVATE LIMITED	Managing director	02-08-01	02-08-01	-	Active	NO
4	U17111TN2004PTC062030	SJLT SPINNING MILLS PRIVATE LIMITED	Whole-time director	08-09-04	08-09-04	-	Active	NO
5	U60210TZ2006PTC012794	SRI JAGATHEESAN LORRY TRANSPORTS PRIVATE LIMITED	Director	26-05-06	26-05-06	-	Active	NO
6	U14102TZ2006PTC012792	SJLT GRANITES PRIVATE LIMITED	Director	26-05-06	26-05-06	-	Active	NO
7	U01730TZ2003PTC010632	POPPYS KNITWEAR PRIVATE LIMITED	Director	28-02-07	28-02-07	16-11-09	Active	NO

Name :

Mr. Chinnusamy Sureshbabu

Designation :

Director

Address :

286, Trichy Road, Nanakkal – 637001, Tamilnadu, India

Date of Birth/Age :

03.04.1976

PAN No. :

ACSPS8502M

Date of Appointment :

26.10.2005

DIN No.:

00002288

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	U17115TN2001PTC047542	SJLT TEXTILES PRIVATE LIMITED	Whole-time director	02-08-01	02-08-01	-	Active	NO
2	U17111TN2004PTC062030	SJLT SPINNING MILLS PRIVATE LIMITED	Director	26-10-05	26-10-05	-	Active	NO
3	U01730TZ2003PTC010632	POPPYS KNITWEAR PRIVATE LIMITED	Director	28-02-07	28-02-07	16-11-09	Active	NO

Name :

Mr. Jagadeesan Bhuvaneswari

Designation :

Director

Address :

286, Trichy Road, Nanakkal – 637001, Tamilnadu, India

Date of Birth/Age :

18.06.1983

PAN No. :

AHMPB1256C

Date of Appointment :

20.10.2004

DIN No.:

00002290

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
V. Jagatheesan	2736436
V. Selvadurai	3564536
J. Padmavathi	319804
S. Lalitha	129804
J. Bhuvaneswari	160204
V. Sankarammal	10000
C. Suresh Babu	19804
S. Savitha	19804
J. Sindoori	19804
S. Sujitha	19804
Total	7000000

As on 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cotton Yarn

Products :

Description of product or service category	ITC Code
Cotton yarn	5207

PRODUCTION STATUS (As on 31.03.2011)

i. Licensed Capacity Since delicenced

ii. Installed capacity 50688

Particulars	Unit	Actual Production
Cotton Yarn	Kgs. Rs.	3373710
Knittings	--	243174

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Corporation Bank, Namakkal Branch, Namakkal - 637001, Tamilnadu, India
• State Bank of India Namakkal Branch, Namakkal - 637001, Tamilnadu, India
• Vijaya Bank, Namakkal Branch, Namakkal - 637001, Tamilnadu, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long-Term Borrowings
Rupee term loans from banks Term loans from SBI, Vijaya Bank, SBM and Reliance Capital secured by first charge on all movable and immovable properties of the company	128.075	195.646
Short-Term Borrowings
Working capital loans from banks Cash Credit from Vijaya Bank is secured by way of first charge on Stock, Debtors outstanding of the company	119.866	181.390
Total	247.941	377.036

Banking Relations :	--
Auditors :
Name :	L. Vijayan Chartered Accountant
Address :	104, State Bank, Colony, Trichy Road, Namakkal - 637001, Tamilnadu, India
PAN.:	AAKPV8068P

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Shares	Rs.10/- each	Rs.75.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs.10/- each	Rs.70.000 Millions

Disclosure of shareholding more than five per cent in company

Name of shareholder	Number of shares held in company	Percentage of shareholding in company
Jagatheesan Veerappan	27,36,436	39.09%
Veerappan Selvadurai	35,64,536	50.92%

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		70.000	70.000	70.000
2] Share Application Money		2.000	2.000	2.000
3] Reserves & Surplus		91.427	125.694	89.189
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		163.427	197.694	161.189
LOAN FUNDS
1] Secured Loans		247.941	377.036	349.127
2] Unsecured Loans		33.801	14.960	36.028
TOTAL BORROWING		281.742	391.996	385.155
DEFERRED TAX LIABILITIES		21.977	42.479	30.367
TOTAL		467.146	632.170	576.711
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		403.025	457.688	346.367
Capital work-in-progress		0.000	0.096	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	58.938	175.934	142.780
	Sundry Debtors	51.262	38.075	74.668
	Cash & Bank Balances	18.347	0.879	9.554
	Other Current Assets	0.035	0.047	0.000
	Loans & Advances	86.619	139.195	108.318
Total Current Assets		215.201	354.130	335.320
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	77.588	123.690	91.927
	Other Current Liabilities	73.492	56.054	13.107
	Provisions	0.000	0.000	0.000
Total Current Liabilities		151.080	179.744	105.034
Net Current Assets		64.121	174.386	230.286
MISCELLANEOUS EXPENSES		0.000	0.000	0.058
TOTAL		467.146	632.170	576.711

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Turnover	542.168	765.637	651.339
		Other Income	NA	NA	NA
		TOTAL (A)	NA	NA	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses	NA	NA	NA
		Advertising Expenses
		TOTAL (B)	NA	NA	NA
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		50.843	140.132	121.383
Less	FINANCIAL EXPENSES (D)		47.386	36.862	44.550
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.457	103.270	76.833
Less/ Add	DEPRECIATION/ AMORTISATION (F)		58.225	49.175	44.245
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(54.768)	54.095	32.588
Less	TAX (H)		(20.501)	23.115	13.646
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(34.267)	30.980	18.942
	MAT Credit		0.000	5.525	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		125.694	89.189	70.247
	BALANCE CARRIED TO THE B/S		91.427	125.694	89.189
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Merchandise and Direct Exports	14.987	38.144	12.971
	TOTAL EARNINGS		14.987	38.144	12.971
	IMPORTS
		Stores, Spares & Packing Materials	NA	34.152	NA
	TOTAL IMPORTS		NA	34.152	NA
	Earnings / (Loss) Per Share (Rs.)		(0.46)	NA	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Return on Total Assets (PBT/Total Assets}	(%)	(8.86)	6.66	4.78
Return on Investment (ROI) (PBT/Networth)		(0.34)	0.27	0.20
Debt Equity Ratio (Total Debt /Networth)		1.72	1.98	2.39
Current Ratio (Current Asset/Current Liability)		1.42	1.97	3.19

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	No
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

Note:

The registered office of the company has been shifted from 285, Trichy Road, Namakkal - 637002,Tamilnadu, India to present address w.e.f. 04.12.2006

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2012	As on 31.03.2011
Long-Term Borrowings
Loans and advances from related parties	33.801	14.960
Total	33.801	14.960

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17111TN2004PTC062030
Name of the company	SJLT SPINNING MILLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	No 12/4, New Giri Road, Giri Road, First Street, T Nagar, Chennai - 600017, Tamilnadu, India ganravi@gmail.com
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge) Others
Particular of charge holder	Vijaya Bank, Namakkal Branch, Namakkal - 637001, Tamilnadu, India namakkal3033@vijayabank.co.in
Nature of instrument creating charge	01. Articles of Agreement 02. Hypothecation of Agreement
Date of instrument Creating the charge	11.01.2013
Amount secured by the charge	Rs. 45.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest SL ( Term Loan ) of Rs.4500.00 Millions - BR + 2.85% ie 13.30% pa and an additional interest of 2% in case of default Terms of Repayment SL ( Term Loan ) of Rs.4500.000 Millions - Loan is repayable in 24 equal quarterly installment commencing after an initial moratorium of 2 years from the date of first disbursement ie Rs.2751020 each commencing from 11.04.2015 and will be due for closureon 10.01.2021 Margin SL ( Term Loan ) of Rs.4500.000 Millions - cost machineries Rs.57.100 Millions and loan component on the same Rs.45.000 Millions and that the margin is Rs.12.100 Millions. Extent and Operation of the charge First and exclusive charge by way of hypothecation in favour of the bank on ELITE compact SET RL LMW LR 6-1. 200 4 PC, ELITE compact SETL RL LMW LR 6 of 18 PC and ELITE compact set RL LMW LR 6 of 18 PC to be installed at NH - 7 Namakkkal - Karur Main Road, Pillaikalathur Paramathi (PO) Paramathi - Velur (TK) Namakkal District 637207 for the due repayment of the entire dues together with interest, cost and other expenses
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First and exclusive charge by way of hypothecation in favour of the bank on ELITE compact SET RL LMW LR 6-1. 200 4 PC, ELITE compact SETL RL LMW LR 6 of 18 PC and ELITE compact set RL LMW LR 6 of 18PC to be installed at NH - 7 Namakkkal - Karur Main Road, Pillaikalathur Paramathi (PO) Paramathi - Velur (TK) Namakkal District 637207 for the due repayment of the entire dues together with interest, co

FIXED ASSETS

• Land
• Buildings
• Plant and equipment
• Factory equipments
• 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 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.54.28
UK Pound	1	Rs.84.32
Euro	1	Rs.71.00

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--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		27

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.