MIRA INFORM REPORT

Report Date :

04.11.2014

IDENTIFICATION DETAILS

Name :	AATHAVA GARMENTS INDIA PRIVATE LIMITED
Registered Office :	2/166 A, Praga Compound, Nava India Stop, Peelamed, Coimbatore – 641004, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	10.07.2006
Com. Reg. No.:	18-012917
Capital Investment / Paid-up Capital :	Rs.27.049 Millions
CIN No.: [Company Identification No.]	U18109TZ2006PTC012917
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Textiles and Jewellery.
No. of Employees :	75 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 109300
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There seems some dip in the turnover and profit of the company during 2013 however, general financial position of the company is normal and acceptable for business dealing. Trade relations are reported as fair. Business is active. Payment terms are reported to be slow but 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 – 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 slowly 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	CARE
Rating	Long Term Bank Facilities = BBB-
Rating Explanation	Moderate degree of safety. It carry moderate credit risk.
Date	27.01.2014

Rating Agency Name	CARE
Rating	Short Term Bank Facilities = A3
Rating Explanation	Moderate degree of safety. It carry higher credit risk.
Date	27.01.2014

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 (GENERAL DETAILS)

Name :	Mr. Iaul Ali Khan
Designation :	Marketing Manager
Contact No.:	91-9994014786
Date :	03.11.2014

LOCATIONS

Registered Office/ Factory :	2/166 A, Praga Compound, Nava India Stop, Peelamed, Coimbatore – 641004, Tamilnadu, India
Tel. No.:	91-422-2565716
Mobile No.:	91-9994014786 (Mr. Iaul Ali Khan)
Fax No.:	91-422-2567975
E-Mail :	venukopal.cn@gmail.com zia@aathavagarments.com
Website :	www.aathavagarments.com
Location :	Owned

DIRECTORS

As on 09.09.2013

Name :

Mr. Palaniamml Shabariegambaram Manickam

Designation :

Managing director

Address :

2/5 Desabandhu Street, Ram Nagar, Coimbatore - 641009, Tamilnadu, India

Date of Appointment :

10.07.2006

DIN No.:

00068538

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	U52393TZ2000PLC009431	THE KTM JEWELLERY LIMITED	Director	10/03/2005	10/03/2005	-	Active	NO
2	U18109TZ2006PTC012917	AATHAVA GARMENTS INDIA PRIVATE LIMITED	Managing director	09/10/2006	10/07/2006	-	Active	NO
3	U17112TZ2006PTC012951	THE MADRAS SILKS INDIA PRIVATE LIMITED	Director	29/09/2012	19/01/2012	-	Active	NO
4	U40108TZ2012PTC018327	CRYSTAL WIND ENERGY PRIVATE LIMITED	Director	04/06/2012	04/06/2012	-	Active	NO

Name :

Mr. Kulandaivelu Manickam

Designation :

Director

Address :

2/5 Desabandhu Street, Ram Nagar, Coimbatore - 641009, Tamilnadu, India

Date of Appointment :

10.07.2006

DIN No.:

00028106

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	U18101TZ1991PTC003373	SCM GLOBAL BRANDS PRIVATE LIMITED	Director	25/07/1991	25/07/1991	03/09/2012	Active	NO
2	U17111TZ1995PTC005857	T C S TEXTILES PRIVATE LIMITED	Whole-time director	24/02/1995	24/02/1995	-	Amalgamated	NO
3	U52393TZ2000PLC009431	THE KTM JEWELLERY LIMITED	Director	14/07/2000	14/07/2000	30/12/2011	Active	NO
4	U36911TZ2006PTC012701	GAJAANANDA JEWELLERY MAART PRIVATE LIMITED	Director	03/04/2006	03/04/2006	-	Active	NO
5	U18101TZ2006PTC012697	S.C.M. INTERNATIONAL IMPEX PRIVATE LIMITED	Director	03/04/2006	03/04/2006	30/01/2012	Active	NO
6	U18101TZ2006PTC012698	SCM GARMENTS PRIVATE LIMITED	Director	28/09/2012	03/04/2006	-	Active	NO
7	U18109TZ2006PTC012917	AATHAVA GARMENTS INDIA PRIVATE LIMITED	Director	09/10/2006	10/07/2006	-	Active	NO
8	U17112TZ2006PTC012951	THE MADRAS SILKS INDIA PRIVATE LIMITED	Managing director	24/07/2006	24/07/2006	-	Active	NO
9	U17111TZ2006PTC012699	SCM SILKS PRIVATE LIMITED	Director	28/09/2007	09/07/2007	30/01/2012	Active	NO
10	U40108TZ2012PTC018327	CRYSTAL WIND ENERGY PRIVATE LIMITED	Director	04/06/2012	04/06/2012	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Iaul Ali Khan
Designation :	Marketing Manager

MAJOR SHAREHOLDERS

As on 09.09.2013

Names of Shareholders	No. of Shares	% of Holding
Kulandaivelu Manickam	2167840	80.14
P. M. Shabari egambaram	270600	10.00
Palaniamml Shabariegambaram Manickam	266500	9.85
Total	2704940	100.00

Equity Share Break up (Percentage of Total Equity)

As on 09.09.2013

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Textiles and Jewellery.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

No. of Employees :

75 (Approximately)

Bankers :

• City Union Bank Limited, Ramnagar Branch, 27-30, Sarojini Street, Ramnagar, Coimbatore - 641009, Tamilnadu, India
• HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel West, Mumbai – 400013, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
SHORT TERM BORROWINGS
Term loan from bank (the sanction granted by the bank is secured by hypothecation of stock ,Book debt and machinery the loan is further secured by the personal guarantee of the director)	32.443	13.893
Total	32.443	13.893

Banking Relations :	--
Auditors :
Name :	V.R.D and Company Chartered Accountants
Address :	90, East Lokamanya Street, R.S Puram, Coimbatore – 641002, Tamilnadu, India
Tel. No.:	91-421-4323024
E-Mail :	venukopal.cn@gmail.com
PAN No.:	AAGFV6200P
Common Key Management Personnel :	The Madras Silks India Private Limited Gajaananda Jewellery Maart Private Limited The KTM Jewellery Limited

CAPITAL STRUCTURE

As on 09.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
2800000	Equity Shares	Rs.10/- each	Rs.28.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2704940	Equity Shares	Rs.10/- each	Rs.27.049 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	27.049	27.049	27.049
(b) Reserves & Surplus	11.205	7.777	1.405
(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)	38.254	34.826	28.454
(3) Non-Current Liabilities
(a) long-term borrowings	18.217	24.690	23.348
(b) Deferred tax liabilities (Net)	1.991	1.968	1.978
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	1.692	1.692	0.000
Total Non-current Liabilities (3)	21.900	28.350	25.326
(4) Current Liabilities
(a) Short term borrowings	32.443	13.893	16.632
(b) Trade payables	21.471	14.316	53.741
(c) Other current liabilities	30.580	26.642	46.175
(d) Short-term provisions	6.509	6.838	6.116
Total Current Liabilities (4)	91.003	61.689	122.664
TOTAL	151.157	124.865	176.444
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	44.585	53.927	57.446
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.292
(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	5.729	3.353	3.057
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	50.314	57.280	60.795
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	20.236	22.772	38.794
(c) Trade receivables	76.812	39.705	64.648
(d) Cash and cash equivalents	3.152	4.563	6.518
(e) Short-term loans and advances	0.000	0.000	0.000
(f) Other current assets	0.643	0.545	5.689
Total Current Assets	100.843	67.585	115.649
TOTAL	151.157	124.865	176.444

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	173.087	211.418	292.127
		Other Income	15.418	13.024	3.821
		TOTAL (A)	188.505	224.442	295.948
Less	EXPENSES
		Cost of Materials Consumed	87.460	81.125	140.335
		Cost of materials Traded	1.927	17.452	15.960
		Other Direct Costs	24.601	37.477	44.994
		Employee Benefits Expenses	57.348	51.315	48.996
		Selling Expenses	3.244	5.387	15.407
		Other Expenses	12.372	12.404	16.279
		Extraordinary Items	(11.826)	0.000	0.000
		TOTAL (B)	5.126	205.160	281.971
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		13.379	19.282	13.977
Less	FINANCIAL EXPENSES (D)		2.004	2.032	1.838
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		11.375	17.250	12.139
Less	DEPRECIATION/ AMORTISATION (F)		5.502	6.989	7.913
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		5.873	10.261	4.226
Less	TAX (H)		2.445	3.888	1.546
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		3.428	6.373	2.680
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		7.630	1.257	(1.423)
	BALANCE CARRIED TO THE B/S		11.058	7.630	1.257
	Earnings / (Loss) Per Share (Rs.)		1.27	2.36	2.82

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PAT/Sales)	(%)	1.98	3.01	0.92
Operating Profit Margin (PBIDT/Sales)	(%)	7.73	9.12	4.78
Return on Total Assets (PBT/Total Assets}	(%)	3.89	8.22	2.40
Return on Investment (ROI) (PBT/Networth)		0.15	0.29	0.15
Debt Equity Ratio (Total Debt /Networth)		1.32	1.11	1.41
Current Ratio (Current Asset/Current Liability)		1.11	1.10	0.94

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	27.049	27.049	27.049
Reserves & Surplus	1.405	7.777	11.205
Share Application money pending allotment	0.000	0.000	0.000
Net worth	28.454	34.826	38.254
Long Term borrowings	23.348	24.690	18.217
Short Term borrowings	16.632	13.893	32.443
Total borrowings	39.980	38.583	50.660
Debt/Equity ratio	1.405	1.108	1.324

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	292.127	211.418	173.087
		(27.628)	(18.130)

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	292.127	211.418	173.087
Profit	2.680	6.373	3.428
	0.92%	3.01%	1.98%

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	No
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)	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 shareholders	18.217	24.690
Total	18.217	24.690

BUSINESS REVIEW

The Company has increased its Export turnover during the year by more than ten percent during Volatile subdued Export Market. The Company is confident of achieving higher turnover and improved profit.

The Company as part of its Business strategy to concentrate on Export business has hived off its domestic textile business to Gajaananda Apparel Company India I Private Limited. The value of net assets transferred during hive off is Rs.18.075 Millions.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10392779	02/07/2014 *	58,000,000.00	HDFC Bank Limited	HDFC Bank Housesenapati Bapat Marg, Lower Parel W, Mumbai, Maharashtra - 400013, India	C11332798

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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.76.67

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	DIV
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	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	4
--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
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.