MIRA INFORM REPORT

Report Date :

03.02.2014

IDENTIFICATION DETAILS

Name :	S B T APPARELS PRIVATE LIMITED
Registered Office :	SF No. 346/1, Kosamvampalayam Road, Palladam – 641664, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	04.05.2005
Com. Reg. No.:	18-011775
Capital Investment / Paid-up Capital :	Rs. 49.493 Millions
CIN No.: [Company Identification No.]	U18101TZ2005PTC011775
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Apparels, Grey Woven Fabrics etc.
No. of Employees :	200 (Approximately)

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 89900
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. 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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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

The services sector, the largest contributor to India’s GDP, contracted for the sixth consecutive month in December, as orders dipped. However, hiring has risen.  Direct tax collections rose 12.3 % during the April – December period of the current financial year.  The government has decided to retain 100 per cent foreign direct investment in both greenfield (new) and brown field (existing) pharmaceutical companies, despite concerns over genetic drugs going out of production, if multi-national companies take over domestic ones. In M&A deals, a non-compete clause would not be allowed, except in special circumstances. The Department of Industrial Policy and Promotion plans to release the next edition of its consolidated foreign direct investment policy document on March 31, incorporating changes made in the past year. DIPP compiles all policies related to India’s FDI regime into a single document to make it easy for investors to understand. 185 million estimated number of mobile internet users in India by June 2014, according to a report by the Internet & Mobile Association of India and IMRB International.  India had 110 million mobile internet users with 25 million in rural areas. $3.77 tn estimated global IT spending in 2014, according to research firm Gartner Inc. The growth forecast for this year is cut to 3.1 %from the earlier estimate of 3.5 %. The spending growth forecast for telecom services – a segment that accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per cent is the main reason for this overall IT cut. A Reserve Bank of India committee has recommended setting up a special category of lenders who would cater to small businesses and households, to expand the number of customers with access to banking services. These banks would focus on providing payment services and deposit products.  Indian banks want the free use of automated teller machines to be capped at five transactions in a month including that of the bank in which the account is active. This follows state government order to banks to install security guards at ATM booths after a woman banker was assaulted in Bangalore. The government is likely to present a vote on Account in mid-February. The annual Economic Survey will be tabled later in Parliament along with the full Budget. A full Budget for 2014/15 is likely to be present in July by the new government formed after the General Election. The government will soon launch an internet spy system, called Netra, to detect malafide messages. Security agency will deploy the system to capture dubious voice traffic on applications such as Skype and Google Talk, as well as tweeters.

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.

INFORMATION PARTED BY

Name :	Mr. Kadhiresan
Designation :	Finance Manager
Contact No.:	91-9789114254
Date :	01.02.2014

LOCATIONS

Registered Office/ Factory :	SF No. 346/1, Kosamvampalayam Road, Palladam – 641664, Tamilnadu, India
Tel. No.:	91-4255-329203
Mobile No.:	91-9789114254 (Mr. Kadhiresan)
Fax No.:	Not Available
E-Mail :	sharanca@gmail.com
Location :	Owned

DIRECTORS

AS ON 30.09.2013

Name :

Palanisamy Balasubramanian

Designation :

Director

Address :

Saral Thottam, Kosamvampalayam Road, Palladam – 641664, Tamilnadu, India

Date of Birth/Age :

10.05.1954

Date of Appointment :

04.05.2005

DIN No.:

00379448

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	Company/ LLP Status	Defaulting status
1	U17115TZ1991PTC003167	VIGNESHKUMAR SPINNING MILLS PRIVATE LIMITED	Managing director	30/12/2011	17/06/1992	Active	NO
2	U18101TZ2005PTC011775	S B T APPARELS PRIVATE LIMITED	Director	04/05/2005	04/05/2005	Active	NO

Name :

Palaniswamy Gounder Rathanasamy

Designation :

Director

Address :

Saral Thottam, Kosamvampalayam Road, Palladam – 641664, Tamilnadu, India

Date of Birth/Age :

20.05.1957

Date of Appointment :

04.05.2005

DIN No.:

00379501

Name :

Balasubramaniam Shanmugavadivel

Designation :

Director

Address :

Saral Thottam, Kosamvampalayam Road, Palladam – 641664, Tamilnadu, India

Date of Birth/Age :

30.01.1980

Date of Appointment :

04.05.2005

DIN No.:

00379455

Name :

Balasubramaniiam Gunasekaran

Designation :

Director

Address :

Saral Thottam, Kosamvampalayam Road, Palladam – 641664, Tamilnadu, India

Date of Birth/Age :

30.12.1981

Date of Appointment :

04.05.2005

DIN No.:

00379487

KEY EXECUTIVES

Name :	Mr. Kadhiresan
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Names of Shareholders	No. of Shares
Palanisamy Balasubramanian	958849
Palaniswamy Gounder Rathanasamy	854549
Balasubramaniam Shanmugavadivel	1142772
Balasubramaniiam Gunasekaran	761684
B. Nachammal	253251
R. Chitradevi	268251
R. Srivignesh	237431
B. GEETHA	472500
Total	4949287

AS ON 30.09.2013

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Apparels, Grey Woven Fabrics etc.
Exports :
Products :	Finished Goods
Countries :	· Dubai
Terms :
Selling :	Cash and Credit
Purchasing :	Cash, Credit and Depend

GENERAL INFORMATION

Customers :

Retailers and End Users

· Bombay Dyeing & Manufacturing Company Limited

No. of Employees :

200 (Approximately)

Bankers :

· Indian Overseas Bank

Knit City Branch, No 37, 60 Feet Road, JG Nagar, Kumarananthapuram, Tirupur - 641602, Tamilnadu, India

· Bharat Overseas Bank Limited

Rasi Towers, No.23, 60 Feet Road, LG Nagar, Kumaranathapuram, Tirupur - 641602, Tamilnadu, India

· State Bank Of India

13 Munsif Srinivasapuram, Uthukuli Road, Tirupur - 641601, Tamilnadu, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
Sizing Term Loan from - Indian Overseas Bank, Tpr	1.351	1.941
Sizing Term Loan from - Indian Overseas Bank, Tpr	3.851	4.881
Spinning Term Loan from - Indian Overseas Bank, Tpr	8.140	9.000
Spinning Unit Term Loan from - Indian Overseas Bank, Tpr	32.753	49.472
WindMill Term Loan from - Indian Overseas Bank, Tpr	13.147	16.924
Working Capital Loan from - Indian Overseas Bank, Tpr [Primarily secured against machinery purchased out of bank finance. Collaterally secured against factory Land and Building, land & buildings of directors and their relatives]	5.625	12.378
SHORT TERM BORROWINGS
Loans repayable on demand Working Capital Loan from - Indian Overseas Bank, Tpr [Primarily secured against stock & receivables. Collaterally secured by Land & buildings of promoter, guarantors]	79.024	77.313
Total	143.891	171.909

Banking Relations :	--
Auditors :
Name :	Sarulatha And Saravanan Chartered Accountants
Address :	L 375/54, First Floor, Periyar Nagar, Surampatti, Erode – 638009, Tamilnadu, India
Income-tax PAN of auditor or auditor's firm :	AAXFS7038P
Enterprise over which Key Managerial Personnel have Control :	Sri Palaniandavar Textiles
Enterprise over which Key Managerial Personnel have Significant influence :	· Vigneshkumar Spinning Mills Private Limited VBP Textile Mills Rathna Textiles Murugan Textiles

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
6,000,000	Equity Shares	Rs. 10/- each	Rs. 60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4,949,287	Equity Shares	Rs. 10/- each	Rs. 49.493 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	49.493	49.493	42.948
(b) Reserves & Surplus	(27.025)	(31.265)	(31.724)
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	22.468	18.228	11.224
(3) Non-Current Liabilities
(a) long-term borrowings	77.552	109.281	124.387
(b) Deferred tax liabilities (Net)	12.622	12.622	12.621
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	90.174	121.903	137.008
(4) Current Liabilities
(a) Short term borrowings	79.024	77.313	39.695
(b) Trade payables	24.165	16.361	36.593
(c) Other current liabilities	0.017	0.133	0.000
(d) Short-term provisions	4.500	0.000	0.000
Total Current Liabilities (4)	107.706	93.807	76.288
TOTAL	220.348	233.938	224.520
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	93.349	90.309	104.314
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1.996	1.930	0.752
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	4.941	16.129	7.582
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	100.286	108.368	112.648
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	57.537	72.536	72.380
(c) Trade receivables	46.072	31.795	32.546
(d) Cash and cash equivalents	2.271	10.445	2.867
(e) Short-term loans and advances	13.266	10.200	3.694
(f) Other current assets	0.916	0.594	0.385
Total Current Assets	120.062	125.570	111.872
TOTAL	220.348	233.938	224.520

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		TOTAL (A)	374.393	310.596	228.222
Less	EXPENSES
		TOTAL (B)	329.929	272.834	193.731
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		44.464	37.762	34.491
Less	FINANCIAL EXPENSES (D)		19.500	21.061	16.964
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		24.964	16.701	17.527
Less/ Add	DEPRECIATION/ AMORTISATION (F)		16.225	16.242	17.219
	PROFIT BEFORE TAX (E-F) (G)		8.739	0.459	0.308
Less	TAX (H)		4.500	0.000	0.057
	PROFIT AFTER TAX (G-H) (I)		4.239	0.459	0.251
	Earnings Per Share (Rs.)		0.86	0.09	0.06

Expected Sales (2013-2014): Rs. 400.000 Millions

The above information has been parted by Mr. Kadhiresan (Finance Manager)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.13	0.15	0.11
Return on Total Assets (PBT/Total Assets}	(%)	4.00	0.20	0.14
Return on Investment (ROI) (PBT/Networth)		0.39	0.03	0.03
Debt Equity Ratio (Total Debt/Networth)		6.97	10.24	14.62
Current Ratio (Current Asset/Current Liability)		1.11	1.34	1.47

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	90001959	26/09/2013 *	182,576,000.00	INDIAN OVERSEAS BANK	KNIT CITY BRANCH, NO 37, 60 FEET ROAD, JG NAGAR, KUMARANANTHAPURAM, TIRUPUR - 641602, TAMILNADU, INDIA	B88643309

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
Vigneshkumar Spinning Mills Private Limited (Directors having substantial interest)	12.685	14.685
Total	12.685	14.685

OPERATION AND TURNOVER

The Company's turnover for the year 2012-2013 is Rs.374.394 Millions. The company's turnover has increased by about 20% as compared to the previous year. The company is functioning at optimum level of production with integrated spinning, weaving, sizing and windmill divisions.

BUSINESS

Textile industry continues to reel from some adverse conditions like increase input costs and persistent and irregular power cuts that generally affected the industry. However the company has continued to function at optimum level of production and has achieved increased sales turnover. The company has not incurred cash losses during the year.

TRADE REFERENCE:

· Bombay Dyeing & Manufacturing Company Limited

FIXED ASSETS:

· Lands

Buildings

Office Equipments

Plant & Machinery

Vehicles

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 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. 62.48
UK Pound	1	Rs. 102.95
Euro	1	Rs. 84.60

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	--
--CREDIT LINES	1~10	4
--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
DEFAULTERS
--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.