MIRA INFORM REPORT

Report No. :	318102
Report Date :	25.04.2015

IDENTIFICATION DETAILS

Name :	BSK TEXTILE PRIVATE LIMITED
Registered Office :	2/ 316 Kungumapalayam Perivu, Palladam - Tiruppur Main Road, Naranapuram Post Palladam – 641664, Tamil Nadu
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	12.02.2004
Com. Reg. No.:	18-010983
Capital Investment / Paid-up Capital :	Rs. 9.980 Million
CIN No.: [Company Identification No.]	U17111TZ2004PTC010983
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and exporter of Fabric and Home Textiles, Institutional Bed lines and Coated Fabrics.
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 500000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The company has fair profit margin and liquidity position during FY2014. Further, there is a favorable gap between trade receivables and payables. It has established market position and promoters are extensively experienced in the textile industry. Subject can be considered for medium term 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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	CRICIL
Rating	Long Term Rating = BB
Rating Explanation	Inadequate Credit quality and high credit risk
Date	16.12.2014
Rating Agency Name	CRICIL
Rating	Short Term Rating = A4 +
Rating Explanation	Minimal Degree of safety and very high credit risk.
Date	16.12.2014

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 DENIED BY DECLINED

Name :	Mr. Suresh
Designation :	Export – Import Officer
Contact No.:	91-4255-256610
Date :	20.04.2015

LOCATIONS

Registered Office /Factory :	2/ 316 Kungumapalayam Perivu, Palladam - Tiruppur Main Road, Naranapuram Post Palladam – 641664, Tamil Nadu, India
Tel. No.:	91-4255- 256789
Mobile No.:	91-4255-256610 (Mr. Suresh)
Fax No.:	91-4255-256700
E-Mail :	exim@bsktextiles.in
Website :	http://www.bsktextiles.in
Location :	Owned

DIRECTORS

As on: 15.09.2014

Name :	Marappa Gounder Senthilkumar
Designation :	Director
Address :	2/ 316 Kungumapalayam Perivu, Palladam - Tiruppur Main Road, Naranapuram Post Palladam – 641664, Tamil Nadu, India
Date of Birth/Age :	22.10.1953
Date of Appointment :	12.02.2004
DIN No.:	00207053
Name :	S. Kalavathi
Designation :	Director
Address :	2/ 316 Kungumapalayam Perivu, Palladam - Tiruppur Main Road, Naranapuram Post Palladam – 641664, Tamil Nadu, India
Date of Birth/Age :	28.04.1962
Date of Appointment :	12.02.2004
DIN No.:	00297759
Name :	A. Sudha
Designation :	Director
Address :	No. 4 Kumarsamy Street, M.3.K. Nilayam, Erode – 638001, Tamil Nadu, India
Date of Birth/Age :	30.12.1982
Date of Appointment :	11.05.2011
DIN No.:	01624315
Name :	V. Sangita
Designation :	Director
Address :	N No. -1, Greenways Road, Fair lands, Salem- 636016, Tamil Nadu,India
Date of Birth/Age :	13.04.1961
Date of Appointment :	11.05.2011
DIN No.:	03350643
Name :	C. Velayudhan
Designation :	Director
Address :	No. 149, 5^th Cross Sirfft Workers Estate, Neelankarai, Chennai – 600041, Tamil Nadu, India
Date of Birth/Age :	15.04.1902
Date of Appointment :	24.07.2014
DIN No.:	06917984
Name :	M. Senthil Arumugam
Designation :	Director
Address :	19A, New Extension Street, West Palladam, Palladam Tirupur – 641664, Tamil Nadu, Inda
Date of Birth/Age :	03.02.1979
Date of Appointment :	24.07.2014
DIN No.:	06917036
Name :	Ragothaman S
Designation :	Director
Address :	18, Poornima Garden, Vennaimalai, Kathapparai, Karur – 639006, Tami Nadu, India
Date of Birth/Age :	06.07.1972
Date of Appointment :	24.07.2014
DIN No.:	06918203

KEY EXECUTIVES

Name :	Mr. Suresh
Designation :	Export – Import

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 15.09.2014

Names of Shareholders	No. of Shares	%age
Marappa Gounder Senthilkumar	49900	50.00
S. Kalavathi	39920	40.00
A. Sudha	4990	5.00
V. Sangita	4990	5.00
Total	99800	100.00

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and exporter of Fabric and Home Textiles, Institutional Bed lines and Coated Fabrics.
Products :	Fabric and Home Textiles, Institutional Bed lines Coated Fabrics.
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Fabric and Home Textiles, Institutional Bed lines Coated Fabrics.
Countries :	Europe Countries Australia Canada UAE Saudi Arabia
Imports :
Products :	Carton Yarn
Countries :	China Egypt
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Wholesaler and Retailer

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

500 (Approximately)

Bankers :

City Union Bank, Tirupur Main Road, Palladam, Tamil Nadu, India

Facilities :

(Rs. In Millions)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Term Loan	44.568	19.748
- From Bank
- Vehicle Loan from Bank	1.197	2.387
SHORT TERM BORROWING
Working capital loan from bank	162.628	143.624
Foreign Currency loan	75.228	79.981
Loans Against Fixed Deposit	0.100	2.334
Total	283.721	248.074

Auditors :
Name :	P. S. Krishnan And Company Chartered Accountant
Address :	No. 40A, Kurinji Towers, Appachi Nagar Main Road, Tirupur – 641607, Tamil Nadu, India
PAN No.:	AAFFP1860J
Memberships :	--
Collaborators :	--
Related Parties :	Bed and Beyond products India Private Limited Deneer Textile Private Limited Swaas Enterprises Private Limited Kittu Export Palladam Hitech Weaving park
Sister Concern:	S. A. A. Enterprises

CAPITAL STRUCTURE

As on: 15.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100/- each	Rs. 50.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
99800	Equity Shares	Rs.100/- each	Rs. 9.980 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	9.980	9.980	9.980
(b) Reserves & Surplus	169.551	140.313	110.099
(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)	179.531	150.293	120.079
(3) Non-Current Liabilities
(a) long-term borrowings	150.287	112.788	120.804
(b) Deferred tax liabilities (Net)	8.316	8.350	9.423
(c) Other long term liabilities	0.315	0.143	0.388
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	158.918	121.281	130.615
(4) Current Liabilities
(a) Short term borrowings	237.957	225.940	228.698
(b) Trade payables	39.183	24.987	24.179
(c) Other current liabilities	56.118	45.595	33.593
(d) Short-term provisions	2.000	0.000	0.000
Total Current Liabilities (4)	335.258	296.522	286.470
TOTAL	673.707	568.096	537.164
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	184.607	162.633	148.096
(ii) Intangible Assets	2.529	2.738	3.496
(iii) Capital work-in-progress	4.328	0.000	1.546
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1.729	1.035	1.035
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	36.033	34.694	17.484
(e) Other Non-current assets	7.399	0.516	0.364
Total Non-Current Assets	236.625	201.616	172.021
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	159.505	135.182	138.591
(c) Trade receivables	181.227	167.687	166.106
(d) Cash and cash equivalents	33.213	4.928	21.665
(e) Short-term loans and advances	27.392	30.385	12.146
(f) Other current assets	35.745	28.298	26.635
Total Current Assets	437.082	366.480	365.143
TOTAL	673.707	568.096	537.164

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	943.654	800.095	731.480
		Other Income	34.383	68.174	63.457
		TOTAL	978.037	868.269	794.937
Less	EXPENSES
		Cost of Materials Consumed	697.310	593.270	598.650
		Purchases of Stock-in-Trade	15.153	23.474	22.302
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(15.811)	5.148	(19.608)
		Employees benefits expense	81.448	65.104	51.321
		Exceptional Items	(0.605)	(0.055)	0.000
		Other expenses	87.740	72.362	55.793
		TOTAL	865.235	759.303	708.458
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		112.802	108.966	86.479
Less	FINANCIAL EXPENSES		42.559	46.073	41.681
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		70.243	62.893	44.798
Less/ Add	DEPRECIATION/ AMORTISATION		16.139	16.438	14.038
	PROFIT BEFORE TAX		54.104	46.455	30.760
Less	TAX		17.467	11.927	9.566
	PROFIT AFTER TAX		36.637	34.528	21.194
	SHORT PROVISION TOWARDS TAXATION		(3.502)	0.000	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		103.919	69.392	48.199
	Balance Carried to the B/S		140.556	103.920	69.393
	Earnings Per Share (Rs.)		367.10	345.97	212.36

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	3.88	4.32	2.90
Operating Profit Margin (PBDIT / Sales)	(%)	11.95	13.62	11.82
Return on Total Assets (PBT/Total Assets}	(%)	8.10	8.19	5.75
Return on Investment (ROI) (PBT/Networth)		0.30	0.31	0.26
Debt Equity Ratio (Total Debt /Networth)		2.16	2.25	2.91
Current Ratio (Current Asset/Current Liability)		1.30	1.24	1.27

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO:

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	9.980	9.980	9.980
Reserves & Surplus	110.099	140.313	169.551
Net worth	120.079	150.293	179.531
long-term borrowings	120.804	112.788	150.287
Short term borrowings	228.698	225.940	237.957
Total borrowings	349.502	338.728	388.244
Debt/Equity ratio	2.911	2.254	2.163

YEAR-ON-YEAR GROWTH:

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	731.480	800.095	943.654
		9.380	17.943

NET PROFIT MARGIN:

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	731.480	800.095	943.654
Profit	21.194	34.528	36.637
	2.90%	4.32%	3.88%

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	No
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)	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

OPERATIONS:

In spite of global recession and fluctuation in Foreign exchange rates, the company has shown an increase of Rs. 109.769 Million in its turnover during the year when compared to last year. The profitability after tax during the year under consideration also has increased from Rs. 34.527 Million to Rs. 36.637 Million.

During the year under consideration, the company has taken over a processing unit including building and machineries at SIPCOT Industrial Complex, Perundurai by way of E Auction from Union Bank India, Kannur for a total consideration of Rs. 28.000 Million. This processing unit was purchased by availing a term loan of Rs. 21.000 Million from City Union Bank Limited, Tirupur. The company is taking necessary steps to get approval from the pollution control board to run the processing unit.

FUTURE OUTLOOK:

The Directors Happy to announce that the demand for the company’s product is increasing day by day. In order to cope up with the demand, the Directors have decide to acquire 24 Nos. of Items Rapier Shuttles Looms at a cost of Rs. 127.500 Million. Because of this, the annual production capacity will be increased substantially. By using these looms, the company will able to produce high quality fabrics (free from defects.) For procuring the said looms, the company propose to avail a term loan of Rs. 95.000 Million from City Union Bank, Tirupur.

UNSECURED LOAN:

(Rs. In Million)

Particulars	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Loan and Advances from Related Parties
- From Directors	104.326	89.456
- From relative parties	0.196	1.196
Total	104.522	90.652

INDEX OF CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10474906	01/11/2014 *	125,000,000.00	CITY UNION BANK LIMITED	No.94, Court Street,, Tirupur, Tamil Nadu - 641601  , INDIA	C32574097
2	10427481	06/05/2013	500,000.00	CITY UNION BANK LIMITED	Tirupur Branch, 94 Court Road, Tirupur, Tamil Nad  u - 641601, INDIA	B75726034
3	80023439	08/07/2006 *	9,753,000.00	CITY UNION BANK LIMITED	COURT STREET, TIRUPUR, Tamil Nadu - 641601, INDIA	A11950268
4	80023443	08/07/2006 *	11,993,000.00	CITY UNION BANK LIMITED	COURT STREET, TIRUPUR, Tamil Nadu - 641601, INDIA	A12012167
5	80023445	30/05/2013 *	506,850,000.00	CITY UNION BANK LIMITED	Tirupur Branch, 94 Court Road, Tirupur, Tamil Nad  u - 641601, INDIA	B77247567

* Date of charge modification

FIXED ASSETS:

• Land
• Building
• Plant & Machinery Windmill
• Furniture & Fixture
• Office Equipments
• Vehicle
• Computer Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records 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.63.40
UK Pound	1	Rs.95.42
Euro	1	Rs.68.48

INFORMATION DETAILS

Information Gathered by :	RKA
Analysis Done by :	SUM
Report Prepared by :	DDD

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
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		44

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 unfavorable 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.