MIRA INFORM REPORT

Report No. :	353938
Report Date :	16.12.2015

IDENTIFICATION DETAILS

Name :	K U SODALAMUTHU AND CO PRIVATE LIMITED

Registered Office :	No. 428 Mettupalayam Road, Coimbatore-641043, Tamilnadu
Tel. No.:	91-422-4242100, 2438346

Country :	India

Financials (as on) :	31.03.2014

Date of Incorporation :	06.04.1990

Com. Reg. No.:	18-002670

Capital Investment / Paid-up Capital :	Rs. 23.974 Million

CIN No.: [Company Identification No.]	U05110TZ1990PTC002670

IEC No.:	0488006091

TAN No.: [Tax Deduction & Collection Account No.]	Not Available

PAN No.: [Permanent Account No.]	AAACK7236M

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer, Exporter and Importer of Paper Converting Machine and Paper Recycling Machines. (Confirmed by management)

No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Status :	Satisfactory

Payment Behaviour :	Usually correct

Litigation :	Clear

Comments :	Subject is an established company incorporated in the year 1990. It is engaged in the business of manufacturing, exporting and importing of paper converting and paper recycling machines. Management has failed to file latest financials (i.e. 31.03.2015) with the government department. For the financial year ended 2014, the company has shown steady growth in its sales turnover and achieved profitability margin of 8.6%. The company has comfortable financial base, negligible debts along with favourable gap between trade payables and receivables. Trade relations are fair. Business is active. Payments are reported to be usually correct. In view of long business track record, 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 – 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

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	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 31-03-2015.

INFORMATION PARTED BY

Name :	Mrs. Swarnalatha
Designation :	Customer Relation Executive
Contact No.:	91-9952429595
Date :	09.12.2015

LOCATIONS

Registered Office/ Head Office/ Factory 1 :	No. 428 Mettupalayam Road, Coimbatore-641043, Tamilnadu, India
Tel. No.:	91-422-4242100, 2438346, 2441223, 2441805
Mobile No.:	91-9952429595 (Mrs. Swarnalatha) 91-9870094248 (Mr. Chettiar)
Fax No.:	91-422-2431279
E-Mail :	accounts@sodaltech.com sales@sodaltech.net
Website :	www.sodaltech.co.in www.sodaltech.com www.sodaltech.net www.sodaltech.in
Location :	Owned
Locality :	Commercial

Factory 2 :	SF # 73 /1 - A, Solavampalayam Post, Kinathukadavu. Coimbatore- 642109 Tamilnadu, India
Tel. No.:	91-4259-242383/241417

Branch Offices :	Located At : New Delhi Mumbai Kolkata Chennai

Overseas Marketing Offices :	Located At : Bangladesh Brazil Czech Republic Iran

DIRECTORS

As on 31.03.2015

Name :	Mr. Sodalamuthu Balamurugan
Designation :	Managing Director
Address :	24, 5th Cross, Bharathi Park Road, Coimbatore-641043, Tamilnadu, India
Date of Birth/Age :	19.01.1964
Date of Appointment :	01.04.2011
DIN No.:	01027749

Name :	Mr. Sureshkumar Viswanathan
Designation :	Director
Address :	24, 6th Cross, Bharathi Park Road, Coimbatore-641043, Tamilnadu, India
Date of Birth/Age :	22.03.1982
Date of Appointment :	01.09.2008
DIN No.:	02226203

Name :	Mrs. Shanthi Balamurugan
Designation :	Director
Address :	24, 5th Cross, Bharathi Park Road, Coimbatore-641043, Tamilnadu, India
Date of Birth/Age :	29.12.1972
Date of Appointment :	30.12.1996
DIN No.:	01072742

Name :	Mr. Sodalamuthu Subramaniam
Designation :	Director
Address :	Old No.36, New No.67, 8th Cross, Bharathi Park Road, Coimbatore-641011, Tamilnadu, India
Date of Birth/Age :	25.11.1954
Date of Appointment :	06.04.1990
DIN No.:	01036467

Name :	Mrs. Parimala Subramaniam
Designation :	Director
Address :	Old No.36, New No.67, 8th Cross, Bharathi Park Road, Coimbatore-641011, Tamilnadu, India
Date of Birth/Age :	08.04.1961
Date of Appointment :	15.11.1991
DIN No.:	01036550

Name :	Mrs. Saraswathi Viswanathan
Designation :	Director
Address :	Old No.62, New No.24, 6th Cross, Bharathi Park Road, Coimbatore-641011, Tamilnadu, India
Date of Birth/Age :	17.02.1959
Date of Appointment :	15.11.1991
DIN No.:	01509926

KEY EXECUTIVES

Name :	Mrs. Swarna Latha
Designation :	Customer Relation Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2015

Names of Shareholders	No. of Shares	Percentage
Shanthi Balamurugan	303500	12.66
K. S. Vishwanathan	433500	18.08
K. S. Subramaniam	503800	21.01
K. S. Balamurugan	575250	24.00
Saraswathi Vishwanathan	305750	12.75
Parimala Subramaniam	270300	11.28
V. Suresh Kumar	5250	0.22
Total	2397350	100.00

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2014

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Paper Converting Machine and Paper Recycling Machines. (Confirmed by management)

Products :	Paper Converting Machine Paper Recycling Machines

Brand Names :	Not Available

Agencies Held :	Not Available

Exports :
Products :	Finished Goods
Countries :	Egypt Iran Saudi Arabia Italy

Imports :
Products :	Raw Material
Countries :	Germany Japan

Terms :
Selling :	Cash / L/C / Credit

Purchasing :	Cash / L/C / Credit

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :

Hindustan Hardwares, Coimbatore

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Payment Behaviour	Market Goodwill	Overall
Not Divulged	Not Divulged	Not Divulged

Remark:

Not Divulged

Customers :

Reference :

Tamilnadu Newsprint and Paper Limited, Karur

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Product Quality	Delivery Behaviour	Overall
Not Divulged	Not Divulged	Not Divulged

Remark:

Not Divulged

No. of Employees :

200 (Approximately)

Bankers :

Bank Name	Oriental Bank of Commerce
Branch	1057, Jaya Enclave, Avinashi Road, Coimbatore - 641018, Tamilnadu, 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

Karur Vysya Bank Limited, S.F. 399 and 407, Sundaram Arcade, Saibaba Colony, Coimbatore - 641011,Tamilnadu, India

Facilities :

Secured Loan

31.03.2014

(Rs. in Million)

31.03.2013

(Rs. in Million)

Long-term Borrowings

Term loan from Bank

13.531

18.979

Total

13.531

18.979

Notes :

Long-term Borrowings

Term loan from Bank

[Details of repayments of Long term borrowings and security provided in respect of secured long term borrowings (Repayable in 36 Installments)]

Non-current	0.138	0.000
Current	0.216	0.000
Total	0.354	0.000

Primary: Hypothecation of Windmill and EM of land situated at S.F No. 424, Vadamalipalayam village it- Elavathi area, Tirupur.

Collateral: Extension of EM of Land and Building at 4111- A, 1-B, A-A of Sanganur Village, 94 Mettupalayam Road in the name of Mr. K.S. Subramaniam and Mr. K.S Balamurugan and Extension of RM of factory land and building in the name of Mr. K.S. Viswanathan. Mr.K.S Subramaniam and Mr. K.S. Balamurugan at SF No. 73/1A, 7312-A at Solavampalayam village, Pollachi Taluk, Coimbatore.

Personal Guarantee of all the directors having aggregate networth of Rs.100.900 Million.

The loan is repayable in 84 monthly installment upto 2017.

Non-current	13.392	18.636
Current	5.460	5.460
Total	18.852	24.096

Auditors :
Name :	Karthikeyan and Jayaram Chartered Accountants
Address :	142, Alagesan Road, Saibaba Colony, Coimbatore-641011, Tamilnadu, India
Tel. No.:	91-422 2447759
Mobile No.:	91-9865210422
Fax No.:	91-422 2433800
E-Mail :	Tax.coimbatore@gmail.com
Website :	www.karthikeyanjayaram.in
PAN N Income-tax PAN of auditor or auditor's firm :	AADFG5927B

Memberships :	--

Collaborators :	--

Enterprise in which Key Management Personnel Relatives have significant influence :	Sodaltech Exports Bharath Paper Conversions Sodal Systems and Software's

CAPITAL STRUCTURE

As on 30.09.2015

Authorised Capital :

No. of Shares	Type	Value	Amount

2,500,000	Equity Shares	Rs.10/- each	Rs. 25.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

2,397,350	Equity Shares	Rs.10/- each	Rs. 23.974 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	23.974	15.000	15.000
(b) Reserves & Surplus	35.351	11.646	8.935
(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)	59.325	26.646	23.935

(3) Non-Current Liabilities
(a) long-term borrowings	13.531	18.979	24.099
(b) Deferred tax liabilities (Net)	3.303	5.189	8.112
(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)	16.834	24.168	32.211

(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	135.988	26.427	57.569
(c) Other current liabilities	37.194	31.819	36.737
(d) Short-term provisions	5.804	0.000	0.000
Total Current Liabilities (4)	178.986	58.246	94.306

TOTAL	255.145	109.060	150.452

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	30.913	39.761	51.094
(ii) Intangible Assets	0.194	0.292	0.464
(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	0.075	0.075	0.159
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.084	0.084	0.000
Total Non-Current Assets	31.266	40.212	51.717

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	18.414	36.916	18.500
(c) Trade receivables	182.593	17.321	68.576
(d) Cash and cash equivalents	8.120	4.529	2.406
(e) Short-term loans and advances	12.881	7.326	9.253
(f) Other current assets	1.871	2.756	0.000
Total Current Assets	223.879	68.848	98.735

TOTAL	255.145	109.060	150.452

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue	235.400	98.400	124.800
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA

Less	EXPENSES		NA	NA	NA

	PROFIT/ (LOSS) BEFORE TAX		NA	NA	NA

Less	TAX		NA	NA	NA

	PROFIT/ (LOSS) AFTER TAX		23.705	2.711	(11.261)

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	5.201	NA	NA
	TOTAL EARNINGS		5.201	NA	NA

	Earnings / (Loss) Per Share (Rs.)		9.89	1.81	(7.50)

Particulars

31.03.2015

Sales Turnover (Approximately)

250.000

Expected Sales ( 2015-2016 ) : Rs.200.000 Million

The above information has been parted by Mrs. Swarnalatha (Customer Relation Executive)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	5.676	5.640	5.493
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operation	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	10.07	2.76	(9.02)

Debt Equity Ratio (Total Debt /Networth)		0.32	0.92	1.24

Current Ratio (Current Asset/Current Liability)		1.25	1.18	1.05

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	15.000	15.000	23.974
Reserves & Surplus	8.935	11.646	35.351
Net worth	23.935	26.646	59.325

long-term borrowings	24.099	18.979	13.531
Short term borrowings	0.000	0.000	0.000
Current maturities of long-term debts	5.493	5.640	5.676
Total borrowings	29.592	24.619	19.207
Debt/Equity ratio	1.236	0.924	0.324

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	124.800	98.400	235.400
		(21.154)	139.228

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	124.800	98.400	235.400
Profit/ (Loss)	(11.261)	2.711	23.705
	(9.02%)	2.76%	10.07%

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	Yes
8]	Designation of contact person	Yes
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)	Yes
16]	No. of employees	Yes
17]	Details of sister concerns	Yes
18]	Major suppliers	Yes
19]	Major customers	Yes
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	No
26]	Turnover of firm for last three years	Yes
27]	Reasons for variation <> 20%	--
28]	Estimation for coming financial year	Yes
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	Yes
35]	Negative Reporting by Auditors in the Annual Report	No

FINANCIAL RESULTS AND OPERATIONS OF THE COMPANY DURING THE YEAR

The directors state that during the year the company has earned a revenue of Rs.235.400 Million as against the previous war's revenue of Rs.98.400 Million. The operations of the company during the review period resulted in a Net Profit of Rs.23.700 Million.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10197767	05/01/2010	38,200,000.00	ORIENTAL BANK OF COMMERCE	1057, JAYA ENCLAVE, AVINASHI ROAD, COIMBATORE, Tamilnadu - 641018, INDIA	A77798106
2	10132222	17/10/2008	720,000.00	ORIENTAL BANK OF COMMERCE	1057, JAYA ENCLAVE, AVINASHI ROAD, COIMBATORE, Tamilnadu - 641018, INDIA	A52044336
3	10051843	29/03/2007	3,400,000.00	ORIENTAL BANK OF COMMERCE	COIMBATORE BRANCH, 1057, JAYA ENCLAVE, AVINASHI R OAD, COIMBATORE, Tamilnadu - 641018, INDIA	A13946579
4	10000369	24/02/2006	10,600,000.00	ORIENTAL BANK OF COMMERCE LIMITED	DELHI , INDIA,	A00049049

* Date of charge modification

FIXED ASSETS

Building
Plant and machinery
Computer
Furniture and fixture
Vehicle
Cycle
Generator
Software
Air conditioner
Electrical Installation

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 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.67.04
UK Pound	1	Rs.101.67
Euro	1	Rs.73.93

INFORMATION DETAILS

Information Gathered by :	DPA

Analysis Done by :	TRI

Report Prepared by :	JYTK

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	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	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		45

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

INDEX OF CHARGES

Unit