MIRA INFORM REPORT

Report No. :	338503
Report Date :	26.08.2015

IDENTIFICATION DETAILS

Name :	SUBBURAJ SPINNING MILLS PRIVATE LIMITED

Registered Office :	Madurai Road, Sankar Nagar, Tirunelveli – 627357, Tamil Nadu
Tel. No.:	91-462-2300296

Country :	India

Financials (as on) :	31.03.2014

Date of Incorporation :	02.04.1993

Com. Reg. No.:	18-024754

Capital Investment / Paid-up Capital :	Rs.40.000 Million

CIN No.: [Company Identification No.]	U17111TN1993PTC024754

IEC No.:	Not Available

TIN No.:	33225561029

TAN No.: [Tax Deduction & Collection Account No.]	MRIS01809D

PAN No.: [Permanent Account No.]	AADCS3017R

Legal Form :	Private Limited Liability Company

Line of Business :	Producer of Cotton yarn and Polyester cotton.

No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 50000

Status :	Moderate

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject is an established company having moderate track record. For the financial year ended 2014, company possesses above average operational performance and it has achieved profit from its operations during a year under a review. Rating further constrained on account of company’s moderate financial risk profile marked by negative reserves along with huge borrowings and leverage balance sheet profile of the company. However, trade relations are reported as fair. Payment are reported to be slow but correct. In view of leverage balance sheet profile, the company can be considered for business dealing with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31, 2015

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

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

EXTERNAL AGENCY RATING

NOT AVAILABLE

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 31-03-2013.

INFORMATION DENIED

Management non co-operative (91-462-2300296)

LOCATIONS

Registered Office :	Madurai Road, Sankar Nagar, Tirunelveli – 627357, Tamil Nadu, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	smrajunaidu@gmail.com

DIRECTORS

As on 30.09.2014

Name :

Mr. Venkadasamy Subburaj

Designation :

Director

Address :

31/1, Peratchiamman Kovil Street, Tirunelveli – 627003, Tamil Nadu, India

Date of Birth/Age :

25.08.1957

Date of Appointment :

01.04.2013

DIN No.:

00608477

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	U17111TN1993PTC024754	SUBBURAJ SPINNING MILLS PRIVATE LIMITED	Whole-time director	01/04/2013	02/04/1993	-	Active	NO
2	U17111TN1997PTC039310	SUBBURAJ TEXTILE MILLS PRIVATE LIMITED	Whole-time director	01/04/2013	24/10/1997	-	Active	NO
3	U17111TN2003PTC050935	SUBBURAJ COTSPIN MILLS PRIVATE LIMITED	Director	28/05/2003	28/05/2003	-	Active	NO
4	U21012TN2006PLC059326	SPB PAPERS LIMITED	Director	28/03/2006	28/03/2006	14/04/2011	Amalgamated	NO
5	U17100TN2007PLC063107	SUBBURAJ INDUSTRIES LIMITED	Director	16/04/2007	16/04/2007	-	Active	NO

Name :

Mr. Gurusamy Krishnakumar

Designation :

Address :

32-A, New Colony, Vannarpet, Tirunelveli, 627001, Tamil Nadu, India

Date of Birth/Age :

01.09.1973

Date of Appointment :

01.04.2013

DIN No.:

01826100

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	U17111TN1993PTC024754	SUBBURAJ SPINNING MILLS PRIVATE LIMITED	Whole-time director	01/04/2013	24/09/2007	-	Active	NO
2	U21012TN2006PLC059326	SPB PAPERS LIMITED	Additional director	29/06/2009	29/06/2009	01/04/2011	Amalgamated	NO
3	U40108TN2012PTC084425	SHRI VAARI WIND FARMS PRIVATE LIMITED	Director	13/02/2012	13/02/2012	-	Active	NO
4	U17111TN1997PTC039310	SUBBURAJ TEXTILE MILLS PRIVATE LIMITED	Whole-time director	01/04/2013	01/04/2013	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Dindayal
Designation :	Finance Manager

MAJOR SHAREHOLDERS

As on 30.09.2014

Names of Shareholders	No. of Shares	Percentage of Holding
Bagyam Nanammal	3000	0.75
V. Subburaj	81050	20.26
Uma Maheswari	106000	26.50
Arun K Subbiah	42010	10.50
Anitha Arun	28084	7.02
Badrinath Atmaram	42008	10.50
Rekha	28083	7.02
Krishnakumar	41682	10.42
Shyamala	28083	7.02
Total	400000	100.00

As on 30.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Producer of Cotton yarn and Polyester cotton.

Products :

Item Code No. (ITC Code)	Product Description
5205	Cotton Yarn
5509	Polyester Cotton Yarn

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Selling :

Not Divulged

Purchasing :

Not Divulged

PRODUCTION STATUS (As on 31.03.2014)

Particulars	Unit	Year Ended 31.03.2014
Licenced Capacity Ring Frame Spindles	Spindles	29328
Installed Capacity	Spindles	29328
Production of Finished Goods (Cotton Yarn)	Kgs.	218493

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 :

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 :

Information declined by the management.

Bankers :

Banker Name	City Union Bank Limited
Branch Address	Tirunelveli Branch, 93 East Car Street, Tirunelveli – 627006, Tamil Nadu, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Bank of Baroda, Melapalayam Branch, Tirunelveli, Chennai, Tamil Nadu, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
LONG TERM BORROWINGS
City Union Bank Limited	300.268	216.126
Less: Current Maturities of Long term debt	0.000	61.625
SHORT TERM BORROWINGS
From Banks	146.072	191.215
Total	446.340	345.716

Auditors :
Name :	K.V. Raman Chartered Accountants
Address :	42, Sevalpatti South Street, Rajapalayam – 626117, Tamil Nadu, India
PAN No.:	AASPK3952L

Memberships :	Not Available

Collaborators :	Not Available

Enterprises owned or significantly influenced by key management personnel or their relatives :	Subburaj Textile Mills Private Limited, India Subburaj Cotspin Mills Private Limited, India

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount

400000	Equity Shares	Rs.100/-each	Rs.40.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

400000	Equity Shares	Rs.100/-each	Rs.40.000 Million

FINANCIAL DATA

[all figures are in Rupees Million]

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	40.000	40.000	40.000
(b) Reserves & Surplus	(20.076)	(49.008)	78.518
(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)	19.924	(9.008)	118.518

(3) Non-Current Liabilities
(a) long-term borrowings	309.120	156.406	236.321
(b) Deferred tax liabilities (Net)	5.800	5.800	5.800
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.012	1.960	1.960
Total Non-current Liabilities (3)	314.932	164.166	244.081

(4) Current Liabilities
(a) Short term borrowings	146.072	191.215	150.651
(b) Trade payables	41.451	55.377	68.595
(c) Other current liabilities	39.959	80.331	33.249
(d) Short-term provisions	0.000	0.000	0.282
Total Current Liabilities (4)	227.482	326.923	252.777

TOTAL	562.338	482.081	615.376

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	206.680	229.186	255.424
(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	4.963	7.252	8.616
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	211.643	236.438	264.040

(2) Current assets
(a) Current investments	13.047	17.383	10.088
(b) Inventories	56.479	7.802	54.827
(c) Trade receivables	262.453	209.363	265.813
(d) Cash and cash equivalents	12.316	6.347	7.521
(e) Short-term loans and advances	6.400	4.748	13.087
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	350.695	245.643	351.336

TOTAL	562.338	482.081	615.376

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012

	SALES	NA	NA	NA

	EXPENSES	NA	NA	NA

	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	49.816	14.584	(52.214)

Less	FINANCIAL EXPENSES	55.309	117.559	49.276

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	(5.493)	(102.975)	(101.490)

Less/ Add	DEPRECIATION/ AMORTISATION	23.417	24.552	26.166

	PROFIT/ (LOSS) BEFORE TAX	(28.910)	(127.527)	(127.656)

Less	TAX	(57.843)	0.000	0.000

	PROFIT/ (LOSS) AFTER TAX	28.933	(127.527)	(127.656)

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	(250.630)	(123.103)	4.550

	Balance Carried to the B/S	(221.697)	(250.630)	(123.106)

	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	0.000	6.091	10.432
	TOTAL EARNINGS	0.000	6.091	10.432

	IMPORTS
	Components and Stores parts	0.000	1.695	1.561
	TOTAL IMPORTS	0.000	1.695	1.561

	Earnings / (Loss) Per Share (Rs.)	72.33	(318.82)	(319.14)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	0.000	61.625	28.183
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012

Return on Total Assets (PBT/Total Assets}	(%)	(5.14)	(26.45)	(20.74)

Return on Investment (ROI) (PBT/Networth)		(1.45)	14.16	(1.08)

Debt Equity Ratio (Total Debts/Networth)		22.85	(45.43)	3.50

Current Ratio (Current Asset/Current Liability)		1.54	0.75	1.39

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	40.000	40.000	40.000
Reserves & Surplus	78.518	(49.008)	(20.076)
Net worth	118.518	(9.008)	19.924

long-term borrowings	236.321	156.406	309.120
Short term borrowings	150.651	191.215	146.072
Current Maturities of Long Term Debt	28.183	61.625	0.000
Total borrowings	415.155	409.246	455.192
Debt/Equity ratio	3.503	-45.431	22.846

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	----------------------
6	Contact numbers	Yes
7	Name of the person contacted	No
8	Designation of contact person	No
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	----------------------
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	----------------------
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	----------------------
33	Market information	----------------------
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

CURRENT YEAR PROSPECTS

Expert are forecasting a continuing trend of lower realizations and higher input costs for at least the first half of the year and fall in the US Dollar parity and a fall in export realisations is also being forecast to continue. However the Directors are undertaking several measures to increase the product mix and the value added range of product offering by adopting a host of operational cost optimization initiatives to improve and sustain quality and profitability in the coming year.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10201613	17/12/2013 *	448,500,000.00	CITY UNION BANK LTD	TIRUNELVELI BRANCH, 93 EAST CAR STREET, TIRUNELVELI, Tamil Nadu - 627006, INDIA	B95270831

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
LONG TERM BORROWINGS
Loan from finance companies	0.164	1.807
Advance from Directors	0.873	0.000
Advances from Customers	7.815	0.098
Total	8.852	1.905

FIXED ASSETS

Land
Factory Building
Labour Quarters
Plant and Machinery
Dust Collector System
Furniture and Fittings
Electrical Machinery
Generator
Vehicles
Computer
Humidification Plant
HFO Plant

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.66.70
UK Pound	1	Rs.105.10
Euro	1	Rs.77.10

INFORMATION DETAILS

Information Gathered by :	MNJ

Analysis Done by :	KAR

Report Prepared by :	PNM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	---
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		26

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.

MIRA INFORM REPORT

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