MIRA INFORM REPORT

Report Date :

17.01.2014

IDENTIFICATION DETAILS

Name :	R B WOVENS PRIVATE LIMITED
Registered Office :	60, Raja Street, Sanjay Nagar, Erode – 638011, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	01.04.2005
Com. Reg. No.:	18-011696
Capital Investment / Paid-up Capital :	Rs.22.275 Millions
CIN No.: [Company Identification No.]	U17111TZ2005PTC011696
TAN No.: [Tax Deduction & Collection Account No.]	CMBR04227G
PAN No.: [Permanent Account No.]	AACCR9650E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing textile woven and non-woven fabrics
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 650000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears a huge increase in the net profitability during 2013. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered normal 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 – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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 current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6 % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

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 :	60 Raja Street, Sanjay Nagar, Erode – 638011, Tamilnadu, India
Tel. No.:	91-424-2221508 / 2217288
Fax No.:	91-424-2268043
E-Mail :	info@rbwovens.com info@brexports.com siva@rbwovens.com ho@rbwovens.com vetaxes@gmail.com
Area :	2000 Sq. Ft. (Owned)

DIRECTORS

As on 30.09.2013

Name :

Mr. Balakrishnan Sivagnanam

Designation :

Managing Director

Address :

60 Raja Street, Sanjay Nagar, Erode – 638011, Tamilnadu, India

Date of Birth/Age :

10.06.1968

Date of Appointment :

01.04.2005

DIN No.:

00230342

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	U17115TZ1988PTC002230	K S R TEXTILE MILLS PRIVATE LIMITED	Director	23/01/1995	23/01/1995	-	Active	NO
2	U17111TZ2005PTC011696	R B WOVENS PRIVATE LIMITED	Managing director	01/04/2005	01/04/2005	-	Active	NO
3	U01712TZ2005PLC012329	SIMA TEXTILE PROCESSING CENTRE LIMITED	Director	17/09/2012	02/09/2011	-	Active	NO

Name :

Mr. Rajagounder Balakrishnan

Designation :

Director

Address :

60 Raja Street, Sanjay Nagar, Erode – 638011, Tamilnadu, India

Date of Birth/Age :

03.06.1936

Date of Appointment :

01.04.2005

DIN No.:

00230558

Election Commission Identity Card No.:

TN/17/120/28376

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	U29191TZ1984PTC001433	R BALAKRISHNAN ASSOCIATES ENGINEERING PRIVATE LIMITED	Managing director	28/05/1984	28/05/1984	-	Strike off	NO
2	U17115TZ1988PTC002230	K S R TEXTILE MILLS PRIVATE LIMITED	Managing director	30/12/1989	30/12/1989	-	Active	NO
3	U17111TZ2005PTC011696	R B WOVENS PRIVATE LIMITED	Director	01/04/2005	01/04/2005	-	Active	NO

Name :

Mrs. Pushpalatha Sivagnanam

Designation :

Director

Address :

60 Raja Street, Sanjay Nagar, Erode – 638011, Tamilnadu, India

Date of Birth/Age :

24.04.1974

Date of Appointment :

01.04.2005

DIN No.:

00230329

Name :

Nagarathinam Balakrishnan

Designation :

Director

Address :

60 Raja Street, Sanjay Nagar, Erode – 638011, Tamilnadu, India

Date of Birth/Age :

29.04.1945

Date of Appointment :

01.04.2005

DIN No.:

00230354

Election Commission Identity Card No.:

TN/17/120/228377

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	U29191TZ1984PTC001433	R BALAKRISHNAN ASSOCIATES ENGINEERING PRIVATE LIMITED	Director	28/05/1984	28/05/1984	-	Strike off	NO
2	U17111TZ2005PTC011696	R B WOVENS PRIVATE LIMITED	Director	01/04/2005	01/04/2005	-	Active	NO

MAJOR SHAREHOLDERS

As on 30.09.2013

Names of Shareholders	No. of Shares
Rajagounder Balakrishnan	78150
Balakrishnan Sivagnanam	68100
Nagarathinam Balakrishnan	52700
Pushpalatha Sivagnanam	23200
K. Palanisamy	300
P. Mallika	300
Total	222750

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2013

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing textile woven and non-woven fabrics.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· The Federal Bank Limited, No. 22, Palaniappa Street, Perundurai Road, Erode – 638001, Tamilnadu, India

· State Bank of India

· Indian Overseas Bank

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
TL form The Federal Bank Limited for machineries	0.000	1.733
TL form The Federal Bank Limited for wind mills	0.000	29.142
Short Term Borrowings
Packing credit rupee loan form The Federal Bank Limited	0.000	7.000
Packing credit foreign currency from The Federal Bank Limited	31.526	58.079
Total	31.526	95.954

Long Term Borrowings:

1. Term loan from The Federal Bank Limited as on 31.03.2013 id Rs.0.806 Million secured by hypothecation of the immovable, movables of the company and also secured by director’s personal guarantees. The Loan is repayable in 90 monthly instalments of Rs.0.283 Million from August 2005.

2. Term loan from The Federal Bank Limited as on 31.03.2013 is Rs.0.792 Millions is secured by hypothecation of the Immovable, movables of the company and also secured by directors personal guarantees. The Loan is repayable in 84 monthly instalments of Rs.0.081 Million from January 2007.

3. Term loan from The Federal Bank Limited as on 31.03.2013 is Rs.8.792 Millions is secured by hypothecation of Windmills and equitable mortgage of the related lands of the company and also secured by directors personal guarantees/The Loan is repayable in 60 monthly instalments of Rs.0.957 Million from March 2010.

4. Current Maturities of the Term loans are Rs.10.390 Millions {Previous Year Rs.29.531 Millions).

Banking Relations :	--
Auditors :
Name :	T V Venkataramanan and Company Chartered Accountants
Address :	15/D-1, Sathy Road, Behind Lotus Agency, Erode – 638003, Tamilnadu, India
PAN No.:	ABIPV8951C
Entities having significant influence :	K. S. R. Textile Mills Private Limited R. B. Exporters SIMA Textiles Processing Centre Limited

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.100/- each	Rs.25.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
222750	Equity Shares	Rs.100/- each	Rs.22.275 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	22.275	22.275	22.275
(b) Reserves & Surplus	139.022	71.387	53.811
(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)	161.297	93.662	76.086
(3) Non-Current Liabilities
(a) long-term borrowings	13.955	41.170	65.187
(b) Deferred tax liabilities (Net)	0.773	6.580	12.122
(c) Other long term liabilities	21.965	30.698	31.788
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	36.693	78.448	109.097
(4) Current Liabilities
(a) Short term borrowings	31.526	65.079	64.451
(b) Trade payables	42.425	28.713	16.562
(c) Other current liabilities	12.352	31.407	76.997
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	86.303	125.199	158.010
TOTAL	284.293	297.309	343.193
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	109.753	136.130	171.046
(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	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	30.404	20.194	7.988
(e) Other Non-current assets	0.047	0.071	0.094
Total Non-Current Assets	140.204	156.395	179.128
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	10.312	23.960	101.314
(c) Trade receivables	50.644	91.899	38.733
(d) Cash and cash equivalents	72.095	11.175	15.320
(e) Short-term loans and advances	0.000	0.000	0.000
(f) Other current assets	11.038	13.880	8.698
Total Current Assets	144.089	140.914	164.065
TOTAL	284.293	297.309	343.193

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2013	31.03.2012	31.03.2011
	SALES
		Income		409.869	434.259	308.697
		Other Income		15.971	0.923	1.125
		TOTAL (A)		425.840	435.182	309.822
Less	EXPENSES
		Cost of Materials Consumed		155.994	186.697	200.596
		Purchase of traded goods		0.413	0.000	0.0000
		Changes in Inventories of Finished Goods and Work in Progress		12.832	55.732	(65.232)
		Employee benefits expenses		12.097	8.733	8.423
		Other expenses		112.456	107.981	94.635
		Exceptional Items		0.181	0.239	0.279
		TOTAL (B)		293.973	359.382	238.701
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			131.867	75.800	71.121
Less	FINANCIAL EXPENSES (D)			13.071	16.062	13.331
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			118.796	59.738	57.790
Less	DEPRECIATION/ AMORTISATION (F)			29.056	40.142	51.531
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			89.740	19.596	6.259
Less	TAX (H)			22.105	2.020	3.690
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			67.635	17.576	2.569
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			71.377	53.811	51.242
	BALANCE CARRIED TO THE B/S			139.022	71.377	53.811
	EARNINGS IN FOREIGN CURRENCY (ON FOB BASIS)			267.681	323.465	214.190
	IMPORTS
			Raw Materials	3.078	4.695	9.587
			Capital Goods	8.113	4.455	4.959
	TOTAL IMPORTS			11.191	9.150	14.546
	Earnings Per Share (Rs.)			303.64	78.90	11.54

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	15.88	4.04	0.83
Net Profit Margin (PBT/Sales)	(%)	21.89	4.51	2.03
Return on Total Assets (PBT/Total Assets}	(%)	31.57	6.59	1.82
Return on Investment (ROI) (PBT/Networth)		0.56	0.21	0.08
Debt Equity Ratio (Total Debt /Networth)		0.28	1.13	1.70
Current Ratio (Current Asset/Current Liability)		1.67	1.13	1.04

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Rs. In Millions

PARTICULARS	31.03.2013	31.03.2012	31.03.2011
Current maturities of long term debt	0.000	0.475	NA
Total	0.000	0.475	NA

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

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Loans from director	13.955	10.295
Total	13.955	10.295

CORPORATE INFORMATION:

Subject was incorporated on 1 April 2005 with the objective of manufacturing textile woven and non-woven fabrics. The company manufactures textiles woven/non-woven fabrics and textile made up garments and cater to the need of export markets in Europe, USA and Brazil. The company also does job work in respect of weaving, sizing and warping to cater the needs of local domestic market. The company also has two wind mill division at Dharapuram and Udumalpet.

BUSINESS AND FUTURE OUTLOOK:

During the year company has attained a sales turnover of Rs.409.869 Millions as against the sales turnover of Rs.434.259 Millions in the last year. Though there was 16% (year to year) decrease in export sales, the company has attained a growth of 40% (year to year) in job conversion business and 16% increase in wind energy business. During the year company earned profit of Rs.69.954 Millions as against Rs.17.576 Millions in the last year. The company windmills are operating at its full capacity and generated 6630645 units as against 5290582 units of electricity generated in the last year.

The directors hope the company as well as the profitability would be more encouraging in the forthcoming year.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90009383	31/03/2012 *	524,200,000.00	The Federal Bank Limited	22 Palaniappa Street, Perundurai Road, Erode, Tamil Nadu - 638001, India	B39823877

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Electrical Installations

· Furniture and fittings

· Vehicle

· Computer

· Wind Mills

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.61.53
UK Pound	1	Rs.100.73
Euro	1	Rs.83.84

INFORMATION DETAILS

Report Prepared by :

VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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		46

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.