MIRA INFORM REPORT

Report Date :

30.05.2013

IDENTIFICATION DETAILS

Name :	DE NEER TEXTILES PRIVATE LIMITED (w.e.f. 03.07.2008)
Formerly Known As :	PALLADAM HOME FURNISHINGS PRIVATE LIMITED
Registered Office :	2/316, Kungumapalayam Pirivu, Naranapuram Post, Palladam-Tirupur Main Road, Palladam – 641607, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	06.12.2006
Com. Reg. No.:	18-013265
Capital Investment / Paid-up Capital :	Rs.6.000 Millions
CIN No.: [Company Identification No.]	U17211TZ2006PTC013265
TAN No.: [Tax Deduction & Collection Account No.]	CMBD04250B
PAN No.: [Permanent Account No.]	AAECP5468Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Trader of Textile Fabrics.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 29000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Even through the sales has increased the profitability has decreased during 2012. However, trade relations are fair. Business is active. Payments are recorded slow but correct. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – 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

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 :	2/316, Kungumapalayam Pirivu, Naranapuram Post, Palladam-Tirupur Main Road, Palladam – 641607, Tamilnadu, India
Tel. No.:	91-4255-256789-92
Fax No.:	91-4255256700
E-Mail :	psktup@yahoo.co.in
Factory :	Palladam, Hi-tech, Weaving Park, Shed No A 88 / A 89, S.F. No ; 290 / 1 Sukkampalayam Village, K.N. Puram Post, Palladam – 641662, Tamilnadu, India

DIRECTORS

As on: 24.09.2012

Name :

Mr. Anand Thangaraj

Designation :

Managing Director

Address :

MSK Nilayam, 4, Kumarasamy Street, Erode - 638001, Tamilnadu, India

Date of Birth/Age :

15.11.1978

Date of Appointment :

16.11.2011

DIN No.:

01800815

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	U17111TZ2004PTC010983	BKS TEXTILES PRIVATE LIMITED	Director	12/06/2006	12/06/2006	23/03/2009	Active	NO
2	U45208TZ2006PTC013000	ACE AGRO DRY DECOR Private LIMITED	Director	09/02/2007	09/02/2007	30/10/2008	Under Process of Striking off	NO
3	U17211TZ2006PTC013265	DE NEER TEXTILES PRIVATE LIMITED	Managing director	16/11/2011	07/07/2008	-	Active	NO
4	U17120TZ2005PTC014685	SWAAS ENTERPRISES PRIVATE LIMITED	Managing director	09/03/2009	01/09/2008	22/11/2010	Active	NO
5	U55101TZ2010PTC015861	HOTEL ELEVEN DEGREE NORTH PRIVATE LIMITED	Director	02/03/2010	02/03/2010	-	Active	NO
6	U45201TZ2011PTC017642	KALINJI KULAM PROPERTIES PRIVATE LIMITED	Director	15/03/2012	15/03/2012	-	Active	NO

Name :

Mr. Kuppusamy Thangaraj

Designation :

Director

Address :

Old. No. 3, No. 3, Kumarasamy Street, Erode - 638001, Tamilnadu, India

Date of Birth/Age :

10.06.1948

Date of Appointment :

23.03.2011

DIN No.:

02629485

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	U17120TZ2005PTC014685	SWAAS ENTERPRISES PRIVATE LIMITED	Director	09/03/2009	09/03/2009	22/11/2010	Active	NO
2	U17211TZ2006PTC013265	DE NEER TEXTILES PRIVATE LIMITED	Director	23/03/2011	23/03/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 24.09.2012

Names of Shareholders	No. of Shares
Kuppusamy Thangaraj	30000
Anand Thangaraj	570000
Total	600000

Equity Share Break up (Percentage of Total Equity)

As on: 24.09.2012

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Trader of Textile Fabrics.

Products :

Product Description	ITC Code
Cotton Fabrics/ Made Ups	520800

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

The South Indian Bank Limited, Arukkaniammal Towers, 1st Street, Binny Compound, Kumaran Road, Tirupur - 641601, Tamilnadu, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Term Loans
Vehicle Loan from Banks	0.098	0.333
Working capital loan from bank	33.776	40.243
Total	33.874	40.576
Notes: Working capital loan is secured on hypothecation of stock in trade and book debts. Director T. Anand has given his personal property as collateral security for availing the loan.

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
PAN No.:	AAFFP1860J

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
600000	Equity Shares	Rs.10/- each	Rs.6.000 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		6.000	6.000	6.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1.329	1.239	0.000
4] (Accumulated Losses)		0.000	0.000	(0.340)
NETWORTH		7.329	7.239	5.660
LOAN FUNDS
1] Secured Loans		33.874	40.576	0.000
2] Unsecured Loans		1.995	1.800	0.005
TOTAL BORROWING		35.869	42.376	0.005
DEFERRED TAX LIABILITIES		0.139	0.102	0.011
TOTAL		43.337	49.717	5.676
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.360	2.566	1.241
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.126	0.126	0.063
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	29.746	50.695	11.336
	Sundry Debtors	5.438	2.776	1.218
	Cash & Bank Balances	2.086	2.288	0.834
	Other Current Assets	0.116	0.887	0.000
	Loans & Advances	8.603	1.936	2.006
Total Current Assets		45.989	58.582	15.394
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2.375	5.855	10.541
	Other Current Liabilities	2.693	5.019	0.346
	Provisions	0.070	0.683	0.135
Total Current Liabilities		5.138	11.557	11.022
Net Current Assets		40.851	47.025	4.372
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		43.337	49.717	5.676

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	134.534	107.544	24.782
		Other Income	0.031	0.000	0.000
		TOTAL (A)	134.565	107.544	24.782
Less	EXPENSES
		Cost of material consumed	82.556	103.998
		Purchase of stock-in-trade	26.918	15.584
		Changes in Inventory	13.855	(20.114)
		Employee benefit Expenses	1.166	1.119
		Other Administrative Expenses	3.376	1.681
		TOTAL (B)	127.871	102.268	23.698
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		6.694	5.276	1.084
Less	FINANCIAL EXPENSES (D)		6.103	2.724	0.582
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.591	2.552	0.502
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.289	0.188	0.106
	PROFIT BEFORE TAX (E-F) (G)		0.302	2.364	0.396
Less	TAX (H)		0.212	0.785	0.247
	PROFIT AFTER TAX (G-H) (I)		0.090	1.579	0.149
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.239	(0.340)	(0.489)
	BALANCE CARRIED TO THE B/S		1.329	1.239	(0.340)
	Earnings Per Share (Rs.)		0.21	2.79	8.40

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.07	1.47	0.60
Net Profit Margin (PBT/Sales)	(%)	0.22	2.20	1.60
Return on Total Assets (PBT/Total Assets}	(%)	0.62	3.87	2.38
Return on Investment (ROI) (PBT/Networth)		0.04	0.33	0.07
Debt Equity Ratio (Total Debt/Networth)		4.89	5.85	0.00
Current Ratio (Current Asset/Current Liability)		8.95	5.09	1.40

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

OPERATIONS

The company has achieved a turnover of about Rs.134.600 Millions as against the previous year turnover of Rs.107.500 Millions. The Net Profit before depreciation and tax for the year is Rs.0.591 Million as against Rs. 2.553 Million in the previous year.

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
Loans and Advances from related parties
From Directors	1.995	1.800
Total	1.995	1.800

Contingent Liability not provided for in the books of account: (As on: 31.03.2012)

a) EMI towards share of debt services for the unexpired licence period in respect of sheds allotted in Palladam Hi-Tech Weaving Park Rs.3.093 Millions.

FIXED ASSETS

Tangible Assets

• False ceiling
• Plant and Machinery
• Computer
• Furniture and fixtures
• Electrical installation and Fittings
• Office equipments
• Vehicles

Intangible Assets

• Software

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.56.24
UK Pound	1	Rs.84.54
Euro	1	Rs.72.32

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		29

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.