MIRA INFORM REPORT

Report No. :	309378
Report Date :	24.02.2015

IDENTIFICATION DETAILS

Name :	ARTHANARI CLOTHING PRIVATE LIMITED
Registered Office :	68/2B, Manalkadu, Erumapalayam, Salem – 636015, Tamil Nadu
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	02.12.2003
Com. Reg. No.:	18-014963
Capital Investment / Paid-up Capital :	Rs.50.500 Millions
CIN No.: [Company Identification No.]	U51311TZ2003PTC014963
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAECA5322Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Fabrics and Textiles.
No. of Employees :	30 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Reserves of the company seems to be low during 2014. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings 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 – 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	CRISIL
Rating	Long Term Rating = B+
Rating Explanation	Have high risk of default.
Date	November 11, 2014

Rating Agency Name	CRISIL
Rating	Short term rating = A4
Rating Explanation	Have Minimal degree of safety and carry very high credit risk.
Date	November 11, 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

Name :	Mr. Ramesh
Designation :	Accounts Manager
Contact No.:	91-9715259738
Date :	23.02.2015

LOCATIONS

Registered Office / Factory:	68/2B, Manalkadu, Erumapalayam, Salem – 636015, Tamil Nadu, India
Tel. No.:	91-427-2465947
Mobile No.:	91-9715259738 (Mr. Ramesh)
Fax No.:	Not Available
E-Mail :	accounts@alctex.com acpl@arthanariclothing.com
Website :	www.alctex.com

DIRECTORS

As on 29.09.2014

Name :

Mr. Sashikumar Thalamuthunatarajan

Designation :

Managing director

Address :

No. 5/172, Attur Bye Pass Road, Seelanaickenpatti, Salem – 636015, Tamil Nadu, India

Date of Birth/Age :

01.03.1979

Date of Appointment :

04.12.2003

DIN No.:

00438376

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	U51311TZ2003PTC014963	ARTHANARI CLOTHING PRIVATE LIMITED	Managing director	04/12/2003	04/12/2003	-	Active	NO
2	U74900TZ2010PTC016428	SALEM YARN COLORING PARK PRIVATE LIMITED	Director	07/10/2010	07/10/2010	-	Active	NO

Name :

S. R.Nitika

Designation :

Director

Address :

No. 5/172, Attur Bye Pass Road, Seelanaickenpatti, Salem – 636015, Tamil Nadu, India

Date of Birth/Age :

22.12.1981

Date of Appointment :

29.09.2014

DIN No.:

03307560

KEY EXECUTIVES

Name :	Mr. Ramesh
Designation :	Accounts Manager

MAJOR SHAREHOLDERS

As on 29.09.2014

Names of Shareholders	No. of Shares
T. Sashikumar	1620329
S. R. Nitika	329671
R. Athiannan	50000
C. Subbarayan	50000
K. Rajamanickam	50000
T. Annadurai	50000
S. Panneerselvam	50000
V. Raghavan	50000
A.Alagarasan	50000
M. Kalyanaraman	50000
L. Boopathi	50000
E. Shanmugam	50000
E. Sakthivel	50000
A.Aswathasree	2550000
Total	5050000

As on 29.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	90.00
Others	10.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Fabrics and Textiles.

Products :

Item Code No. (ITC Code)	Product Description
52091900	Fabrics

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Available

Imports :

Not Available

Terms :

Selling :

Cash and Credit (30/60/90 Days)

Purchasing :

Cash and Credit (30/60/90 Days)

PRODUCTION STATUS = NOT AVAILABLE

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 :

30 (Approximately)

Bankers :

Banker Name	Tamilnad Mercantile Bank Limited
Branch Address	Shevepet Branch, 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)	Cash Credit = 140.000 Millions
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

SECURED LOANS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Rupee term loans from banks	28.360	45.588
SHORT TERM BORROWINGS
Term Loans from banks	78.452	64.726
Total	106.812	110.314

Auditors :
Name :	JSCV and Company Chartered Accountants
Address :	25,LIC Colony, Omalur Main Road, Salem-636004, Tamil Nadu, India
Tel. No.:	AAEFJ2819E
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs.10/-each	Rs.70.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5050000	Equity Shares	Rs.10/-each	Rs.50.500 Millions

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	50.500	50.500	45.000
(b) Reserves & Surplus	27.728	26.550	32.799
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	5.000
Total Shareholders’ Funds (1) + (2)	78.228	77.049	82.799
(3) Non-Current Liabilities
(a) long-term borrowings	74.476	94.393	110.368
(b) Deferred tax liabilities (Net)	10.635	11.142	11.753
(c) Other long term liabilities	0.000	7.461	9.507
(d) long-term provisions	2.987	2.488	1.990
Total Non-current Liabilities (3)	88.098	115.485	133.618
(4) Current Liabilities
(a) Short term borrowings	78.452	65.274	67.105
(b) Trade payables	60.513	33.073	54.202
(c) Other current liabilities	32.188	32.014	29.477
(d) Short-term provisions	1.211	0.405	0.200
Total Current Liabilities (4)	172.364	130.767	150.984
TOTAL	338.690	323.300	367.401
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	156.723	177.516	184.988
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	13.909	14.043	21.187
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.107	0.057	0.717
(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	9.068	3.016	3.265
Total Non-Current Assets	179.807	194.633	210.157
(2) Current assets
(a) Current investments	0.000	0.000	3.950
(b) Inventories	93.288	72.915	85.109
(c) Trade receivables	42.314	30.964	35.645
(d) Cash and cash equivalents	7.273	8.052	6.868
(e) Short-term loans and advances	7.313	6.265	18.168
(f) Other current assets	8.695	10.472	7.504
Total Current Assets	158.883	128.668	157.244
TOTAL	338.690	323.300	367.401

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	38.541	35.267	34.299
Less	FINANCIAL EXPENSES	20.771	21.584	23.211
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	17.770	13.683	11.088
Less/ Add	DEPRECIATION/ AMORTISATION	15.543	17.749	17.182
	PROFIT/ (LOSS) BEFORE TAX	2.227	(4.066)	(6.094)
Less	TAX	1.555	2.793	0.940
	PROFIT/ (LOSS) AFTER TAX	0.672	(6.859)	(7.034)
	Earnings / (Loss) Per Share (Rs.)	0.13	(1.36)	(1.39)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets}	(%)	0.69	(1.32)	(1.76)
Return on Investment (ROI) (PBT/Networth)		0.03	(0.05)	(0.07)
Debt Equity Ratio (Total Debts/Networth)		1.95	2.07	2.14
Current Ratio (Current Asset/Current Liability)		0.92	0.98	1.04

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	45.000	50.500	50.500
Reserves & Surplus	32.799	26.549	27.728
Share Application money pending allotment	5.000	0.000	0.000
Net worth	82.799	77.049	78.228
long-term borrowings	110.368	94.394	74.476
Short term borrowings	67.105	65.275	78.452
Total borrowings	177.473	159.669	152.928
Debt/Equity ratio	2.143	2.072	1.955

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	No
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	Yes

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10253401	15/10/2010	206,000,000.00	STATE BANK OF INDIA	SIRUTHOZHIL BRANCH, 68,CHERRY ROAD, SALEM, Tamil Nadu - 636007, INDIA	B00249276

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Deposits	46.116	48.805
SHORT TERM BORROWINGS
Other loans and advances	0.000	0.548
Total	46.116	49.353

FIXED ASSETS

• Freehold Land
• Building
• Plant and Machinery
• Furniture and Fixture
• Computers
• Vehicles

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.62.18
UK Pound	1	Rs.95.70
Euro	1	Rs.70.75

INFORMATION DETAILS

Information Gathered by :	PPT
Analysis Done by :	RAS
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	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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.