MIRA INFORM REPORT

Report Date :

03.11.2014

IDENTIFICATION DETAILS

Name :	K. K. P. SPINNING MILLS LIMITED
Registered Office :	New No. 263, Old No. 88, Salem Road, Namakkal-637001, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	10.12.1993
Com. Reg. No.:	18-004731
Capital Investment / Paid-up Capital :	Rs. 172.132 Millions
CIN No.: [Company Identification No.]	U17111TZ1993PLC004731
PAN No.: [Permanent Account No.]	AAACK8959K
TIN No. :	33333121273
CST No. :	428957/26-09-94
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Cotton Yarn and Fabric Cloths.
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 1000000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Rating constrained on dip in profit of the company and intense competition in textile industry. However, Rating weakness are partially offset by group established position in the industry and decent liquidity position. Trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. 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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating = BB
Rating Explanation	Inadequate credit quality and high credit risk
Date	12.11.2013

Rating Agency Name	CRISIL
Rating	Short Term Rating = A4+
Rating Explanation	Minimal degree of safety and very high credit risk
Date	12.11.2013

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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Venkateshan
Designation :	Assistant General Manager
Contact No.:	91-4286-276066
Date :	01.11.2014

LOCATIONS

Registered Office :	New No. 263, Old No. 88, Salem Road, Namakkal-637001, Tamilnadu, India
Tel. No.:	91-4286-276066
Fax No.:	91—4286-276316
E-Mail :	yarns@kkpindia.com fabrics@kkpindia.com madeups@kkpindia.com
Website :	http://www.kkpindia.com
Mill Premises :	Perumapatti village, Bommasamudram, Namakkal-637016, Tamilnadu, India
Tel. No.:	91-4286-287421 / 287915

DIRECTORS

As on 30.09.2013

Name :

Mr. Periasamy Chinnasamy

Designation :

Managing Director

Address :

88, Salem Road, Namakkal-637001, Tamilnadu, India

Date of Birth/Age :

17.12.1961

Date of Appointment :

10.12.1993

DIN No.:

00002493

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	U17115TZ1984PLC003986	K K P TEXTILES LIMITED	Director	21-03-85	21-03-85	-	Active	NO
2	U15142TZ1983PLC001344	K K P WEAVING AND PROCESSING MILLS LIMITED	Director	21-03-85	21-03-85	-	Active	NO
3	U65999TZ1988PTC002284	K K P FABRICS PRIVATE LIMITED	Director	02-11-88	02-11-88	-	Active	NO
4	U17111TZ1993PLC004731	K K P SPINNING MILLS LIMITED	Managing director	10-12-93	10-12-93	-	Active	NO
5	U40100TZ1993PTC004730	K K P WIND FARMS PRIVATE LIMITED	Director	10-12-93	10-12-93	-	Active	NO
6	U65921TZ1994PTC005334	K K P GARMENTS PRIVATE LIMITED	Director	07-09-94	07-09-94	-	Active	NO
7	U02429TZ1995PTC006424	K.K.P. OILS AND LUBRICANTS PRIVATE LIMITED	Director	09-08-95	09-08-95	-	Active	NO
8	U17121GJ2006PTC049132	ABC COTSPIN PRIVATE LIMITED	Director	11-02-08	11-02-08	12-02-09	Active	NO
9	U17111TZ2009PTC015181	K K P HI TECH WEAVING INDIA PRIVATE LIMITED	Director	24-04-09	24-04-09	-	Active	NO

Name :

Mr. Periasamy Nallathambi

Designation :

Director

Address :

88, Salem Road, Namakkal-637001, Tamilnadu, India

Date of Birth/Age :

27.10.1956

Date of Appointment :

10.12.1993

DIN No.:

00002492

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	U17115TZ1984PLC003986	K K P TEXTILES LIMITED	Managing director	21-03-85	21-03-85	-	Active	NO
2	U15142TZ1983PLC001344	K K P WEAVING AND PROCESSING MILLS LIMITED	Director	21-03-85	21-03-85	-	Active	NO
3	U65999TZ1988PTC002284	K K P FABRICS PRIVATE LIMITED	Director	02-11-88	02-11-88	-	Active	NO
4	U17111TZ1993PLC004731	K K P SPINNING MILLS LIMITED	Director	10-12-93	10-12-93	-	Active	NO
5	U40100TZ1993PTC004730	K K P WIND FARMS PRIVATE LIMITED	Director	10-12-93	10-12-93	-	Active	NO
6	U65921TZ1994PTC005334	K K P GARMENTS PRIVATE LIMITED	Director	07-09-94	07-09-94	-	Active	NO
7	U02429TZ1995PTC006424	K.K.P. OILS AND LUBRICANTS PRIVATE LIMITED	Director	09-08-95	09-08-95	-	Active	NO
8	U17111TZ2009PTC015181	K K P HI TECH WEAVING INDIA PRIVATE LIMITED	Director	24-04-09	24-04-09	-	Active	NO
9	U74994AP2014PTC094798	NANDI COTTON GINNING MILL PRIVATE LIMITED	Director	09-07-14	09-07-14	-	Active	NO

Name :

Mr. Nallathambi Bakkialakshmi

Designation :

Director

Address :

109-B, 88, Salem Road, Namakkal-637001, Tamilnadu, India

Date of Birth/Age :

17.12.1956

Date of Appointment :

10.12.1993

DIN No.:

01738013

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	U17115TZ1984PLC003986	K K P TEXTILES LIMITED	Director	21-03-85	21-03-85	-	Active	NO
2	U15311TZ1989PTC002371	K.K.P. FINE LINEN PRIVATE LIMITED	Director	21-07-89	21-07-89	-	Active	NO
3	U15142TZ1983PLC001344	K K P WEAVING AND PROCESSING MILLS LIMITED	Director	19-02-93	19-02-93	-	Active	NO
4	U17111TZ1993PLC004731	K K P SPINNING MILLS LIMITED	Director	10-12-93	10-12-93	-	Active	NO

Name :

Mr. Chinnasamy Selvi

Designation :

Director

Address :

109-B, 88, Salem Road, Namakkal-637001, Tamilnadu, India

Date of Birth/Age :

25.09.1969

Date of Appointment :

10.12.1993

DIN No.:

01738062

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	U15311TZ1989PTC002371	K.K.P. FINE LINEN PRIVATE LIMITED	Director	01-03-89	01-03-89	-	Active	NO
2	U17115TZ1984PLC003986	K K P TEXTILES LIMITED	Director	23-03-92	23-03-92	-	Active	NO
3	U15142TZ1983PLC001344	K K P WEAVING AND PROCESSING MILLS LIMITED	Director	19-02-93	19-02-93	-	Active	NO
4	U17111TZ1993PLC004731	K K P SPINNING MILLS LIMITED	Director	10-12-93	10-12-93	-	Active	NO

Name :

Mr. Nallathambi Sathesh Kumar

Designation :

Director

Address :

109-B, 88, Salem Road, Namakkal-637001, Tamilnadu, India

Date of Birth/Age :

28.02.1979

Date of Appointment :

10.09.2002

DIN No.:

01738478

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	U17111TZ1993PLC004731	K K P SPINNING MILLS LIMITED	Director	30-09-02	30-09-02	-	Active	NO
2	U17115TZ1984PLC003986	K K P TEXTILES LIMITED	Director	30-09-02	30-09-02	-	Active	NO
3	U15311TZ1989PTC002371	K.K.P. FINE LINEN PRIVATE LIMITED	Managing director	21-11-07	21-11-07	-	Active	NO
4	U65921TZ1994PTC005334	K K P GARMENTS PRIVATE LIMITED	Director	30-09-11	15-02-11	-	Active	NO
5	U01712TZ2005PLC012329	SIMA TEXTILE PROCESSING CENTRE LIMITED	Director	17-09-12	02-09-11	-	Active	NO
6	U17111TZ2009PTC015181	K K P HI TECH WEAVING INDIA PRIVATE LIMITED	Director	28-09-12	08-09-12	-	Active	NO
7	U15142TZ1983PLC001344	K K P WEAVING AND PROCESSING MILLS LIMITED	Director	28-09-12	10-09-12	-	Active	NO
8	U02429TZ1995PTC006424	K.K.P. OILS AND LUBRICANTS PRIVATE LIMITED	Director	10-09-12	10-09-12	-	Active	NO
9	U65999TZ1988PTC002284	K K P FABRICS PRIVATE LIMITED	Additional director	18-06-13	18-06-13	-	Active	NO
10	U40100TZ1993PTC004730	K K P WIND FARMS PRIVATE LIMITED	Additional director	01-10-13	01-10-13	-	Active	NO

Name :

Mr. Nallathambi Subash Kumar

Designation :

Director

Address :

109-B, 88, Salem Road, Namakkal-637001, Tamilnadu, India

Date of Birth/Age :

10.02.1981

Date of Appointment :

08.09.2012

DIN No.:

01925829

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	U15311TZ1989PTC002371	K.K.P. FINE LINEN PRIVATE LIMITED	Director	21-11-07	21-11-07	-	Active	NO
2	U17111TZ2009PTC015181	K K P HI TECH WEAVING INDIA PRIVATE LIMITED	Director	24-04-09	24-04-09	-	Active	NO
3	U65921TZ1994PTC005334	K K P GARMENTS PRIVATE LIMITED	Director	30-09-11	15-02-11	-	Active	NO
4	U15142TZ1983PLC001344	K K P WEAVING AND PROCESSING MILLS LIMITED	Director	28-09-12	10-09-12	-	Active	NO
5	U17115TZ1984PLC003986	K K P TEXTILES LIMITED	Director	29-09-12	10-09-12	-	Active	NO
6	U17111TZ1993PLC004731	K K P SPINNING MILLS LIMITED	Director	28-09-12	10-09-12	-	Active	NO
7	U02429TZ1995PTC006424	K.K.P. OILS AND LUBRICANTS PRIVATE LIMITED	Director	10-09-12	10-09-12	-	Active	NO
8	U65999TZ1988PTC002284	K K P FABRICS PRIVATE LIMITED	Additional director	18-06-13	18-06-13	-	Active	NO
9	U40100TZ1993PTC004730	K K P WIND FARMS PRIVATE LIMITED	Additional director	01-10-13	01-10-13	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Venkateshan
Designation :	Assistant General Manager

MAJOR SHAREHOLDERS

As on 30.09.2013

Names of Shareholders	No. of Shares
Periasamy Nallathambi	44360
Periasamy Chinnasamy	21765
Nallathambi Bakkialakshmi	8850
Chinnasamy Selvi	9390
Nallathambi Sathesh Kumar	8280
Nallathambi Subash Kumar	8810

As on 31.03.2014

Names of Allotee	No. of Shares
S. Periasamy Business	475
N. Subashkumar Business	200
P. Chinnasamy Business	250
P. Nallathambi Business	5250
Total	6175

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 :	Manufacturer, Exporter and Importer of Cotton Yarn and Fabric Cloths.
Exports :
Products :	Yarn
Countries :	Europe China Singapure Hong Kong
Imports :
Products :	Cotton
Countries :	China Bangladesh
Terms :
Selling :	L/C and Credit
Purchasing :	L/C and Credit

GENERAL INFORMATION

Customers :

Wholesalers, Retailers, and Manufacturer

No. of Employees :

500 (Approximately)

Bankers :

• ING Vyasa Bank, Namakkal-637001, Tamilnadu, India
• State Bank of India, Commercial Erode

Facilities :

SECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2013	As on 31.03.2012
Long Term Borrowings
Rupee term loans from banks	168.138	27.000
Borrowing from government semi-government bodies	3.592	3.592
Deferred payment for acquisition of fixed assets	20.932	20.932
Deferred sales tax loan	13.262	20.183
Loans taken for vehicles	3.546	5.764
Short Term Borrowings	0	0
Working Capital Loans from Banks	429.784	459.565
Total	639.254	537.036

Banking Relations :	---
Auditors :
Name :	M. Sethuraman Chartered Accountant
Address :	Preethi Towers, 2^nd Floor, 89/1, Thillaipuram Main Road, Namakkal-637001, Tamilnadu, India
Sister Concern :	K.K.P. Textile Limited
Associates :	K.K.P. Weaving and Processing Mills Limited

CAPITAL STRUCTURE

After 30.09.2013

Authorised Capital : Rs. 200.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 199.875 Millions

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
166000	Equity Shares	Rs.1000/- each	Rs. 166.000 Millions
34000	Preference Shares	Rs. 1000/-each	Rs. 34.000 Millions
	TOTAL		Rs. 200.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
138132	Equity Shares	Rs.1000/- each	Rs. 138.132 Millions
34000	Preference Shares	Rs. 1000/-each	Rs. 34.000 Millions
	TOTAL		Rs. 172.132 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	172.132	138.132	138.132
(b) Reserves & Surplus	171.011	124.843	101.858
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	12.175	21.065	7.895
Total Shareholders’ Funds (1) + (2)	355.318	284.040	247.885
(3) Non-Current Liabilities
(a) long-term borrowings	269.587	251.827	238.737
(b) Deferred tax liabilities (Net)	0.000	1.777	8.219
(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)	269.587	253.604	246.956
(4) Current Liabilities
(a) Short term borrowings	429.784	459.565	314.554
(b) Trade payables	146.694	26.822	76.914
(c) Other current liabilities	57.469	40.160	59.365
(d) Short-term provisions	2.957	2.432	2.242
Total Current Liabilities (4)	636.904	528.979	453.075
TOTAL	1261.809	1066.623	947.916
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	544.572	404.587	376.529
(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	0.455	0.000	0.000
(c) Deferred tax assets (net)	25.432	0.000	0.000
(d) Long-term Loan and Advances	39.653	38.984	23.340
(e) Other Non-current assets	3.130	1.614	0.000
Total Non-Current Assets	613.242	445.185	399.869
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	210.606	295.533	298.068
(c) Trade receivables	331.081	215.252	162.120
(d) Cash and cash equivalents	3.425	29.102	15.953
(e) Short-term loans and advances	94.129	80.420	71.136
(f) Other current assets	9.326	1.131	0.770
Total Current Assets	648.567	621.438	548.047
TOTAL	1261.809	1066.623	947.916

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	1466.039	1437.555	1308.748
		Other Income	57.933	29.940	30.172
		TOTAL (A)	1523.972	1467.495	1338.920
Less	EXPENSES
		TOTAL (B)	1344.445	1318.699	1155.921
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		179.527	148.796	182.999
Less	FINANCIAL EXPENSES (D)		94.652	71.818	112.478
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		84.875	76.978	70.521
Less/ Add	DEPRECIATION/ AMORTISATION (F)		63.114	50.503	47.075
	PROFIT BEFORE TAX (E-F) (G)		21.761	26.475	23.446
Less	TAX (H)		-28.786	3.491	0.438
	PROFIT AFTER TAX (G-H) (I)		50.547	22.984	23.008
	Earnings Per Share (Rs.)		293.65	166391.57	166565.31

Expected Sales (2014-15) : Rs. 1800.000 Millions

The above information has been parted by Mr. Venkateshan (Assistant General Manager).

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PAT/Sales)	(%)	3.45	1.60	1.76
Operating Profit Margin (PBITD/Sales)	(%)	12.25	10.35	13.98
Return on Total Assets (PBT/Total Assets}	(%)	1.76	2.48	2.47
Return on Investment (ROI) (PBT/Networth)		0.06	0.09	0.09
Debt Equity Ratio (Total Debt /Networth)		1.97	2.50	2.23
Current Ratio (Current Asset/Current Liability)		1.02	1.17	1.21

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	138.132	138.132	172.132
Reserves & Surplus	101.858	124.843	171.011
Share Application money pending allotment	7.895	21.065	12.175
Net worth	247.885	284.040	355.318
long-term borrowings	238.737	251.827	269.587
Short term borrowings	314.554	459.565	429.784
Total borrowings	553.291	711.392	699.371
Debt/Equity ratio	2.232	2.505	1.968

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1308.748	1437.555	1466.039
		9.842	1.981

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1308.748	1437.555	1466.039
Profit	23.008	22.984	50.547
	1.76%	1.60%	3.45%

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	No
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	Yes

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2013	As on 31.03.2012
Long Term Borrowings
Interoperate deposits	60.117	174.356
Total	60.117	174.356

INDUSTRY CONDITIONS AND REVIEW OF OPERATIONS

i. The Textile Industry India witnessed noticeable improvement during the course of the year.

ii. During the year under review your company was able to demonstrate a good performance due to stable cotton prices, remunerative yarn prices, and upward trend in export of cotton yarn and through dedicated efforts aimed at improving operational efficiency, focus on optimal product mix and effective sales and

return to profitability.

iii. The inadequacy of power had a major impediment for the year. The company has incurred additional cost on power and fuel. This has reduced the profit considerably.

COMPANY OUTLOOK

1. The demand for export yarn for the first quarter is subdued.

2. The company expects the trend will change and the demand of yarn will improve in rest of the year both in domestic and export markets.

3. However, the significant matter of concern in continuing power shortage 4. The forecast of good monsoon gives hope for better cotton crop, which hopefully will result in lower cotton price is subject to climatic variations and market volatility.

5. Frequent changes in government policies will have a serious impact on cotton and yarn prices. Export may partly get affected since European markets are still in downward trend.

6. ower and labour shortage are major concerns, which could have impact on operations of the company. Inflations against major currencies could impact exports.

7. Higher inflation and substantial increase in interest rates would have adverse impact on profit margins of the company.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10359106	28/05/2013 *	149,000,000.00	AXIS BANK LIMITED	SALEM BRANCH, T S NO 13, 14/1 OMALUR ROAD, SALEM,  TAMIL NADU - 636009, INDIA	B76501188
2	10226981	04/06/2010	50,000,000.00	ING VYSYA BANK LIMITED	88, SALEM ROAD, NAMAKKAL, TAMIL NADU - 637001, IN  DIA	A88334750
3	80013313	19/05/2014 *	704,900,000.00	ING VYSYA BANK LIMITED	88,SALEM ROAD,, NAMAKKAL, TAMIL NADU - 637001, IND  IA	C07238413
4	90007280	27/06/2005	485,600,000.00	STATE BANK OF INDIA	NAMAKKAL BRANCH, NAMAKKAL, TAMIL NADU - 637001, IN  DIA	-
5	90007198	17/10/2012 *	412,800,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, 78/79 C D BUILDING PARK ROAD,  ERODE, TAMIL NADU - 638003, INDIA	B63461370

* Date of charge modification

FIXED ASSETS

• Land and Building
• Plant and Machinery
• Vehicles
• Furniture
• Digital Equipment
• Electrical Equipments
• 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. 61.41
UK Pound	1	Rs. 98.06
Euro	1	Rs. 77.19

INFORMATION DETAILS

Information Gathered by :	DPA
Analysis Done by :	SUM
Report Prepared by :	ASH

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	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.