MIRA INFORM REPORT

Report Date :

08.05.2013

IDENTIFICATION DETAILS

Name :	SRI SHANMUGAVEL MILLS PRIVATE LIMITED
Registered Office :	207, Mangalam Road, Tirupur, District Coimbatore – 641604, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	24.04.1980
Com. Reg. No.:	18-000935
Capital Investment / Paid-up Capital :	Rs.5.000 Millions
CIN No.: [Company Identification No.]	U17111TZ1980PTC000935
TAN No.: [Tax Deduction & Collection Account No.]	CMBS05088G
PAN No.: [Permanent Account No.]	AADCS8200N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Supplier of Cotton Yarn and Fabrics.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 2800000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a part of “SRI SHANMUGAVEL GROUP OF MILLS”. It is a well established company having a satisfactory track record. There appears drastic fall in its sales and incurred huge loss during 2012. However, general financial position is good. The subject gets strong support from its group companies. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for business dealings at usual trade terms and conditions.

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	BBB+ (Term Loan)
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation. It carry moderate credit risk.
Date	January 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 :	207, Mangalam Road, Tirupur, District Coimbatore – 641604, Tamilnadu, India
Tel. No.:	91-421-2245337/ 2205031/ 35/ 32
Fax No.:	91-421-2205036
E-Mail :	ssmgroup@airtailmail.in ssmgroup@gmail.com
Website :	www.sudhanyarn.com
Administrative Office/ Facotry :	Kottaiyur, Agaram Village, Thadicombu, District Dindigul – 624709, Tamilnadu, India
Tel. No.:	91-451-2557001/02/ 2557332/ 532
Fax No.:	94-451-2557225/ 259
E-Mail :	ssmgroup@gmail.com ssmgroup@vsnl.com

DIRECTORS

As on: 26.09.2012

Name :

Mr. Veluswamy Pallapalayam Sennimalai Gounder

Designation :

Managing Director

Address :

207, Mangalam Road, Karuvampalayam, Tirapur – 641604, Tamilnadu, India

Date of Birth/Age :

05.06.1935

Date of Appointment :

25.07.1980

PAN No.:

ABLPV6651Q

Voter ID No.:

GDR2736122

DIN No.:

01468617

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	U17111TZ1980PTC000935	SRI SHANMUGAVEL MILLS PRIVATE LIMITED	Managing director	25/07/1980	25/07/1980	-	Active	NO
2	U17111TZ1993PTC004480	PRABHU SPINNING MILLS PRIVATE LIMITED	Managing director	11/10/1996	11/10/1996	-	Active	NO
3	U17111TZ1998PTC008633	SRI MATHA SPINNING MILLS PRIVATE LIMITED	Director	02/11/1998	02/11/1998	-	Active	NO
4	U17111TZ1995PTC005944	ADISANKARA SPINNING MILLS PRIVATE LIMITED	Director	21/09/1999	21/09/1999	-	Active	NO
5	U17111TZ2001PTC009831	VEDHA SPINNING MILLS PRIVATE LIMITED	Director	17/07/2001	17/07/2001	-	Active	NO
6	U17111TZ1982PTC001195	SIVARAJ SPINNING MILLS PRIVATE LIMITED	Director	26/03/2004	26/03/2004	-	Active	NO
7	U17111TZ1988PTC002240	SRI VELAYUDHASWAMY SPINNING MILLS PRIVATE LIMITED	Director	26/03/2004	26/03/2004	-	Active	NO
8	U17111TZ1988PTC002135	SUDHAN SPINNING MILLS PRIVATE LIMITED	Director	26/03/2004	26/03/2004	-	Active	NO
9	U17111TZ2006PTC012582	SHRI SIDDHI VINAYAGA TEX INDIA PRIVATE LIMITED	Director	15/02/2006	15/02/2006	-	Active	NO
10	U17111TZ2006PTC012729	PRASSANNA SPINNING MILLS PRIVATE LIMITED	Director	24/04/2006	24/04/2006	-	Active	NO
11	U17111TZ2007PTC013690	SRI SANKARI YARNS PRIVATE LIMITED	Director	04/05/2007	04/05/2007	-	Active	NO
12	U29199TZ2007PTC014002	RENERGY EQUIPMENTS INDIA PRIVATE LIMITED	Managing director	25/10/2007	25/10/2007	-	Active	NO

Name :

Mr. Chennimalaigounder Kandasamy

Designation :

Director

Address :

207, Mangalam Road, Karuvampalayam, Tirapur – 641604, Tamilnadu, India

Date of Birth/Age :

11.07.1943

Date of Appointment :

26.03.2004

PAN No.:

ABZPK8627R

Voter ID No.:

GDR2736114

DIN No.:

01575050

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	U17111TZ1982PTC001195	SIVARAJ SPINNING MILLS PRIVATE LIMITED	Managing director	19/09/1996	19/09/1996	-	Active	NO
2	U17111TZ1995PTC005944	ADISANKARA SPINNING MILLS PRIVATE LIMITED	Managing director	29/09/1999	29/09/1999	-	Active	NO
3	U17111TZ1980PTC000935	SRI SHANMUGAVEL MILLS PRIVATE LIMITED	Director	26/03/2004	26/03/2004	-	Active	NO
4	U17111TZ2001PTC009831	VEDHA SPINNING MILLS PRIVATE LIMITED	Director	26/03/2004	26/03/2004	-	Active	NO
5	U17111TZ1998PTC008633	SRI MATHA SPINNING MILLS PRIVATE LIMITED	Director	26/03/2004	26/03/2004	-	Active	NO
6	U17111TZ1993PTC004480	PRABHU SPINNING MILLS PRIVATE LIMITED	Director	26/03/2004	26/03/2004	-	Active	NO
7	U17111TZ1988PTC002240	SRI VELAYUDHASWAMY SPINNING MILLS PRIVATE LIMITED	Director	26/03/2004	26/03/2004	-	Active	NO
8	U17111TZ1988PTC002135	SUDHAN SPINNING MILLS PRIVATE LIMITED	Director	26/03/2004	26/03/2004	-	Active	NO
9	U17111TZ2006PTC012582	SHRI SIDDHI VINAYAGA TEX INDIA PRIVATE LIMITED	Director	15/02/2006	15/02/2006	-	Active	NO
10	U17111TZ2006PTC012729	PRASSANNA SPINNING MILLS PRIVATE LIMITED	Director	24/04/2006	24/04/2006	-	Active	NO
11	U17111TZ2007PTC013690	SRI SANKARI YARNS PRIVATE LIMITED	Director	04/05/2007	04/05/2007	-	Active	NO
12	U29199TZ2007PTC014002	RENERGY EQUIPMENTS INDIA PRIVATE LIMITED	Director	25/10/2007	25/10/2007	-	Active	NO

Name :

Mr. Kandaswamy Shanmugavel

Designation :

Director

Address :

207, Mangalam Road, Karuvampalayam, Tirapur – 641604, Tamilnadu, India

Date of Birth/Age :

04.03.1973

Date of Appointment :

11.10.1999

PAN No.:

ADQPS5922G

Voter ID No.:

GDR2736163

DIN No.:

00429940

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	U17111TZ1995PTC005944	ADISANKARA SPINNING MILLS PRIVATE LIMITED	Director	27/09/1996	27/09/1996	-	Active	NO
2	U17111TZ1980PTC000935	SRI SHANMUGAVEL MILLS PRIVATE LIMITED	Director	11/10/1999	11/10/1999	-	Active	NO
3	U17111TZ1988PTC002135	SUDHAN SPINNING MILLS PRIVATE LIMITED	Director	11/10/1999	11/10/1999	-	Active	NO
4	U17111TZ1988PTC002240	SRI VELAYUDHASWAMY SPINNING MILLS PRIVATE LIMITED	Director	07/09/2000	07/09/2000	-	Active	NO
5	U29199TZ2007PTC014002	RENERGY EQUIPMENTS INDIA PRIVATE LIMITED	Director	25/10/2007	25/10/2007	-	Active	NO

Name :

Mr. Sivakumar Shanthi

Designation :

Director

Address :

No.33, Town Extension 4^th Street, Tirapura – 641604, Tamilnadu, India

Date of Birth/Age :

05.05.1965

Date of Appointment :

03.09.1997

PAN No.:

ASUPS2306R

DIN No.:

02556376

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	U17111TZ1980PTC000935	SRI SHANMUGAVEL MILLS PRIVATE LIMITED	Director	03/09/1997	03/09/1997	-	Active	NO
2	U17111TZ1982PTC001195	SIVARAJ SPINNING MILLS PRIVATE LIMITED	Director	06/09/2000	06/09/2000	-	Active	NO
3	U17111TZ2006PTC012582	SHRI SIDDHI VINAYAGA TEX INDIA PRIVATE LIMITED	Director	15/02/2006	15/02/2006	-	Active	NO
4	U14106TZ1984PTC001898	STEELROCK CEMENTS PRIVATE LIMITED	Director	19/01/2011	19/01/2011	-	Active	NO
5	U17111TZ1983PTC001266	SRIVIGNESH YARNS PRIVATE LIMITED	Director	19/01/2011	19/01/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 26.09.2012

Names of Shareholders	No. of Shares
P. S Veluswany	4500
C. Kandaswamy	4500
V. Dhanlakshmi	4500
K. Indira	4500
S. Shanthi	4000
R. Geetha	4000
R. Umamaheshwari	4000
S. Kavitha	4000
K. Shanmugavel	4500
K. Sivaraj	4500
J. Jayalakshmi	4000
S. Veena Abirami	1500
S. Gowthami	1500
Total	50000

Equity Share Break up (Percentage of Total Equity)

As on: 26.09.2012

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Supplier of Cotton Yarn and Fabrics.

Products :

Product Description	ITC Code
Yarn	52052210
Woven Fabric	52091190
Knitted Fabric	60062100

PRODUCTION STATUS (As on: 31.03.2012)

Particulars	Unit	Installed Capacity
Spinning Division Spindles	Nos.	41 616
Weaving Division Looms	Nos.	230
Wind Mill Division
Captive Use : Wind Electric Generators	Nos.	33
Sale to EB : Wind Electric Generators	Nos.	2

Particulars	Unit	Actual Production
i) Spinning Division
a) Own
Yarn	Kgs.	6414043
b) Through Job work
Ring Spinning Yarn	Kgs	78019
OE Yarn	Kgs	1159310
Knitted Fabric	Kgs	920939
ii) Weaving Division
Woven Fabric
a) Own	Mtrs.	5310194
b) Job Work to Others	Mtrs.	4309144
iii) Wind Mill Davison
a) Power generation - for captive use	Units	36703337
b) Power generation - for sale to EB	Units	2466888

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Syndicate Bank, 73, Railway Station Road, Nagalnagar, Dindigul - 624003, Tamilnadu, India
• State Bank of India, SME Branch, No.1, Salai Road, Dindigul - 624001, Tamilnadu, India
• IDBI Bank Limited, No. 1/1, Karthick Raja Complex, Melur Road, K.K. Nagar, Madurai - 625020, Tamilnadu, India
• IDBI Bank Limited, Specialised Corporate Branch, LIC Building, No.3, West Marret Street, Madurai - 625001, Tamilnadu, India
• The Lakshmi Vilas Bank Limited, No. 47/2, Pensioner Street, Palani Road, Dindigul - 624001, Tamilnadu, India
• Industrial Development Bank Of India Limited, No.1, Vinayaga Nagar,, Melur Road, K.K. Nagar, Madurai - 625020, Tamilnadu, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Rupee term loans from banks (Hypothecation of plant and machinery and further by mortgage of immoveable properties)	671.964	385.663
Working capital loans from banks (Hypothecation of current and other moveable assets and mortgage of immoveable properties)	353.328	1198.556
Total	1025.292	1584.219

Banking Relations :	--
Auditors :
Name :	T.R. Ramanathan Chartered Accountant
Address :	Bharathi Theertha Krupa, 343, B.S. Sundaram Road, Tirapur – 641601, Tamilnadu, India
PAN.:	ACSPR0567R
Associate Concerns :	Prabhu Spinning Mills Private Limited CIN No.: U17111TZ1993PTC004480 Renergy Equipments India Private Limited CIN No.: U29199TZ2007PTC014002 Sivaraj Spinning Mills Private Limited CIN No.: U17111TZ1982PTC001195 Adisankara Spinning Mills Private Limited CIN No.: U17111TZ1995PTC005944 Sri Velayudhaswamy Spinning Mills Private Limited CIN No.: U17111TZ1988PTC002240 Vedha Spinning Mills Private Limited CIN No.: U17111TZ2001PTC009831

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100/- each	Rs.5.000 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		5.000	5.000	5.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		707.276	815.100	523.700
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		712.276	820.100	528.700
LOAN FUNDS
1] Secured Loans		1025.292	1584.219	736.486
2] Unsecured Loans		150.000	300.000	390.000
TOTAL BORROWING		1175.292	1884.219	1126.486
DEFERRED TAX LIABILITIES		83.927	68.036	63.184
TOTAL		1971.495	2772.355	1718.370
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1093.126	1111.797	730.228
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		7.326	8.043	8.043
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	450.504	1274.817	552.333
	Sundry Debtors	297.852	319.346	254.567
	Cash & Bank Balances	36.245	17.110	10.254
	Other Current Assets	3.196	3.688	0.000
	Loans & Advances	354.575	211.248	435.608
Total Current Assets		1142.372	1826.209	1252.762
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	34.728	81.682	13.995
	Other Current Liabilities	228.297	81.865	192.141
	Provisions	8.304	10.147	66.527
Total Current Liabilities		271.329	173.694	272.663
Net Current Assets		871.043	1652.515	980.099
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1971.495	2772.355	1718.370

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from Operation	3542.900	5375.300	3598.631
		Other Income	NA	62.806	79.853
		TOTAL (A)	NA	5438.106	3678.484
Less	EXPENSES
		Raw Material Consumed			1102.328
		Power and Fuel			84.503
		Payment and Provision for Remuneration and Other benefit to employee			80.047
		Other Manufacturing Expenses			183.451
		Administrative and Selling Expenses			99.925
		Increase/ Decrease in Stock			1772.509
		Income/(Expenses) relating to earlier year			1.588
		TOTAL (B)	NA	4752.163	3324.351
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		218.189	685.943	354.133
Less	FINANCIAL EXPENSES (D)		180.115	110.565	69.240
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		38.074	575.378	284.893
Less/ Add	DEPRECIATION/ AMORTISATION (F)		163.259	128.466	148.496
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(125.185)	446.912	136.397
Less	TAX (H)		(17.361)	155.512	26.097
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(107.824)	291.400	110.300
	EARNINGS IN FOREIGN CURRENCY		1457.013	2978.726	1974.642
	IMPORTS
		On Account of Capital Items	46.552	170.313	0.725
		Stores & Spares	27.071	24.029	36.920
	TOTAL IMPORTS		73.623	194.342	37.645
	Earnings/ (Loss) Per Share (Rs.)		(2156.00)	5828.00	2206.00

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	5.36	3.00
Net Profit Margin (PBT/Sales)	(%)	(3.53)	8.31	3.79
Return on Total Assets (PBT/Total Assets}	(%)	(5.60)	15.21	6.88
Return on Investment (ROI) (PBT/Networth)		(0.18)	0.54	0.26
Debt Equity Ratio (Total Debt/Networth)		1.65	2.30	2.13
Current Ratio (Current Asset/Current Liability)		4.21	10.51	4.59

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	No

HIGLIGHTS OF OPERATIONS

During the year, textile industry passed through an unprecedented slump, the worst ever scenario unheard in recent past and not witnessed during the tenure of their experience in this field. At the backdrop of historical high cost of raw materials, frequent and severe disruptions in power coupled with fallen demand in Tirupur market due to closure of many dyeing units resulting in lesser utilization of installed machinery, the company’s operations had a stunning set back as evidenced in the net operating results. In general, on account of depletion in the value of carried over inventory owing to sudden and steep fall in cotton rates in addition to panic selling by almost all the spinning units, the gap between the selling rate and input cost widened heavily resulting in huge cash loss in the textile manufacturing sectors.

During the year 2011-12, spinning units in south India faced an extremely grim situation which lasted for about nine months and impacted very much on the fate of a number of units. Nevertheless, considering the highly difficult and challenging industrial atmosphere prevailed during the year gone by and consequential damages by erosion in net worth besides mounting stress in honoring commitments as has been experienced and reported in the industry, the company averted cash loss mainly because of substantial flow from their strategic investments made in earlier years in power projects.

During the year 2011-12, revenue from operations at Rs.3542.900 Millions recorded a negative growth of about 34% as against Rs.5375.300 Millions in the previous year. In the production front, yarn production in spinning division and fabric production in weaving division declined by about 22% and 23% respectively over the previous year. On account of optimum running of wind electric generators upon completion of the projects undertaken in 2011-12, production in wind energy division registered positive growth by about 25%.

In the midst of various hurdles during the year, as a significant development IDBI Bank and Syndicate Bank came to their rescue with their timely support to face the challenging situation. Indeed, their company was able to withstand in the financial turbulence of 2011-12 only with the timely assistance extended by IDBI Bank by way of working capital term loan of Rs.250.000 Millions and Rs.200.000 Millions by Syndicate Bank enabling us to have sufficient cushion in system by way of long term sources. The directors gratefully extend their profound gratitude to IDBI Bank and Syndicate Bank for their continuous support and acknowledge with humility, the confidence and certitude they reposed up on the company even during the precarious industrial situation.

The sign of modest optimistic turnaround developed at the end of the year is now moving progressively and showing satisfactory improvement in the year under progress. Further, under the present scenario of continuing power crises for optimizing consumption of captive wind power generation, the directors are taking requisite efforts to provide grid power supply through dedicated feeder line to have uninterrupted power which will facilitate maximum adjustment of captive wind power generation besides reducing dependability on diesel generators.

With the strategic measures like timely planning in procuring and keeping raw material holding at a safer level to contain financial overheads, reducing high cost diesel power generation during power cuts by obtaining dedicated feeder line and optimum captive wind power adjustment the directors are hopeful of presenting improved and positive achievements in the year under progress.

In view of the loss incurred during the year in addition to increased financial commitments to the bankers besides slow and phased out recovery of the slowdown and to improve the basic fiscal strength of the company, the directors have not made any recommendation for declaration of dividend for the year.

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
Other loans and advances	150.000	300.000
Total	150.000	300.000

CONTINGENT LIABILITIES ARE NOT PROVIDED FOR

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
LC Bills discounted with banks	240.547	383.830
Fringe Benefit Tax	0.974	0.974

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U17111TZ1980PTC000935
Name of the company	SRI SHANMUGAVEL MILLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	207, Mangalam Road, Tirapur, Coimbatore – 641604, Tamilnadu, India Email : ssmgroup@gmail.com
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	State Bank of India, SME Branch, No.1, Salai Road, Dindigul - 624001, Tamilnadu, India E-mail: sbi.12758@sbi.co.in
Nature of instrument creating charge	Agreement of Hypothecation of Goods and Assets
Date of instrument Creating the charge	04.02.2013
Amount secured by the charge	Rs.100.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Base Rate + 2.25% p.a Terms of Repayment Within 6 months from the date of first disbursement Margin 20% Extent and Operation of the charge The Charge operates as security for Short Term Working Capital Limit of Rs.100.000 Millions sanctioned to the company for its weaving division situate at Kottaiyur, Agaram Village, Dindigul District.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of Rawmaterials procured out of sanctioned Short Term Working Capital Loan and stored at the company's weaving division situate at Kottaiyur, Agaram Village, Dindigul District.

FIXED ASSETS

Tangible Assets

• Land
• Buildings
• Factory Building
• Plant and Equipment
• Factory Equipments
• Furniture and Fixtures
• Vehicles
• Livestock

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 :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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		48

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.