MIRA INFORM REPORT

Report No. :	330016
Report Date :	04.07.2015

IDENTIFICATION DETAILS

Name :	SRI SHUBA TEX PRIVATE LIMITED
Registered Office :	No.3/111-C, Andipalayam, Mangalam Road, Tirupur – 641687, Tamilnadu
Tel. No.:	91-421-2260140/3291484
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	16.07.2010
Com. Reg. No.:	016224
Capital Investment / Paid-up Capital :	Rs.0.100 Million
CIN No.: [Company Identification No.]	U17111TZ2010PTC016224
IEC No.:	3210011966
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAOCS5192A
Legal Form :	Private Limited Liability Company
Line of Business :	The company is engaged in the business of purchasing, manufacturing and selling of Power Loom Cloth and Job work of weaving and Sizing.
No. of Employees :	40 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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 incorporated during the year 2010 having a moderate track. Profit margin of the company is low. Borrowings recorded by the company are also huge and increasing which may further acts as threat to the liquidity position of the company. However, trade relations are reported as fair. Business is active. Payment terms are reported to be slow but correct. In view of moderate financial profile and small networth base, 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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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	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 31-03-2013.

INFORMATION PARTED BY

Name :	Mr. Sathyaseelan Velussami
Designation :	Director
Contact No.:	91-9344728492
Date :	03.07.2015

LOCATIONS

Registered Office / Factory:	No.3/111-C, Andipalayam, Mangalam Road, Tirupur – 641687, Tamilnadu, India
Tel. No.:	91-421-2260140 / 3291484 / 4325426
Mobile No.:	91-9344728492 (Mr. Sathyaseelan Velussami)
Fax No.:	91-421-2261525
E-Mail :	tupismail@gmail.com srishubatex@gmail.com
Location :	Rented [Industrial]

DIRECTORS

AS ON 29.09.2014

Name :	Sasivarnan Velussami
Designation :	Director
Address :	S.F.No.302, Andipalayam, Mangalam Road, Tirupur - 641687, Tamilnadu, India
Date of Birth/Age :	28.09.1985
Date of Appointment :	16.07.2010
DIN No.:	03097744
Name :	Sathyaseelan Velussami
Designation :	Director
Address :	S.F.No. 302, Chiniya Gounder Pudur, Andipalayam (P O), Mangalam Road, Tirupur - 641687, Tamilnadu, India
Date of Birth/Age :	16.02.1989
Date of Appointment :	16.07.2010
DIN No.:	03098405

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2014

Names of Shareholders	No. of Shares	%age holding
Sasivarnan Velussami	500	50.00
Sathyaseelan Velussami	500	50.00
Total	1000	100.00

AS ON 29.09.2014

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 :	The company is engaged in the business of purchasing, manufacturing and selling of Power Loom Cloth and Job work of weaving and Sizing.
Products / Services:	Power Loom Cloth and Job work of weaving and Sizing
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :
Products :	Finished Goods
Countries :	USA European Countries UK
Imports :	Not Divulged
Terms :
Selling :	Cash and Cheque
Purchasing :	Cash and Cheque

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
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Wholesalers and Retailers

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

No. of Employees :

40 (Approximately)

Bankers :

Bank Name	City Union Bank Limited
Branch	94 Court Street, Tirupur - 641601, 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

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Terms Loans From others
Sundaram Finance Limited	0.054	0.155
Supreme City Auto Investments	0.011	0.000
Short-term borrowings
Loans repayable on demand
From banks
Working Capital Loan
Citi Union Bank Ltd – CC [Secured by hypothecation of Stock and book debts of the company.]	12.241	1.674
Citi Union Bank Ltd – PCL [Secured by hypothecation of Stock and book debts of the company.]	15.000	0.000
Citi Union Bank Ltd – CC [Secured by hypothecation of Stock and book debts of the company.]	13.072	0.000
Total	40.378	1.829
NOTE : Long-term Borrowings Unsecured loan from Related parties inclusive of Loan from Directors and Relatives.

NOTE :

Long-term Borrowings

Term Loans from Banks are secured by Hypothecation on the Vehicles of the company.

The Component of Term Loans representing current maturity due within next 12 months of the Balance Sheet date amounting to Rs 0.200 Million has been shown under Current Liabilities

Dues to Micro, Small and Medium Enterprises is NIL

Short-term borrowings

Working Capital Loans from Bank are secured by first charge on the all the Inventories, Book Debts and other current assets of the Company and further guaranteed by all Directors in their personal capacity.

Working Capital Borrowings which are generally repayable on demand are subject to renewal annually.

Dues to Related Parties amounting to Rs. NIL

Auditors :
Name :	AL TN and Company Chartered Accountants
Address :	Sabari Towers, K.R.R. Lay Out Main Street, Mangalam Road, Tirupur – 641604, Tamilnadu, India
PAN No.:	AAHFA5196J
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	---

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000	Equity Shares	Rs.100/- each	Rs.0.100 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,000	Equity Shares	Rs.100/- each	Rs.0.100 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	0.100	0.100	0.100
(b) Reserves & Surplus	2.915	2.218	1.185
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	17.400	16.767
Total Shareholders’ Funds (1) + (2)	3.015	19.718	18.052
(3) Non-Current Liabilities
(a) long-term borrowings	17.465	0.155	0.000
(b) Deferred tax liabilities (Net)	0.335	0.000	0.000
(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)	17.800	0.155	0.000
(4) Current Liabilities
(a) Short term borrowings	40.313	1.674	0.358
(b) Trade payables	64.431	42.364	14.590
(c) Other current liabilities	8.248	5.665	1.289
(d) Short-term provisions	0.571	0.667	0.879
Total Current Liabilities (4)	113.563	50.370	17.116
TOTAL	134.378	70.243	35.168
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	22.289	20.528	6.473
(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	0.153	0.001
(d) Long-term Loan and Advances	5.419	5.302	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	27.708	25.983	6.474
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	47.467	10.880	1.046
(c) Trade receivables	49.724	23.523	20.405
(d) Cash and cash equivalents	1.641	0.091	0.167
(e) Short-term loans and advances	7.838	9.766	5.569
(f) Other current assets	0.000	0.000	1.507
Total Current Assets	106.670	44.260	28.694
TOTAL	134.378	70.243	35.168

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	330.282	118.264	95.933
	Other Income
	TOTAL (A)	330.282	118.264	95.933
Less	EXPENSES
	TOTAL (B)	321.770	115.006	93.724
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	8.512	3.258	2.209
Less	FINANCIAL EXPENSES (D)	4.991	0.105	0.053
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	3.521	3.153	2.156
Less/ Add	DEPRECIATION/ AMORTISATION (F)	1.138	2.272	1.090
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	2.383	0.881	1.066
Less	TAX (H)	1.686	(0.152)	0.001
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	0.697	1.033	1.065
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	86.132	3.427	NA
	TOTAL EARNINGS	86.132	3.427	NA
	Earnings / (Loss) Per Share (Rs.)	697.00	1,033.00	--

Particulars	31.03.2015
Sales Turnover (Approximately)	500.000

Expected Sales ( 2015-2016 ) : Rs.600.000 Million

The above information has been parted by Mr. Sathyaseelan Velussami

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	0.200	0.110	NA
Cash generated from operations	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	0.21	0.87	1.11
Operating Profit Margin (PBIDT/Sales)	(%)	2.58	2.75	2.30
Return on Total Assets (PBT/Total Assets}	(%)	1.77	1.26	3.03
Return on Investment (ROI) (PBT/Networth)		0.79	0.04	0.06
Debt Equity Ratio (Total Debt /Networth)		19.16	0.09	0.02
Current Ratio (Current Asset/Current Liability)		0.94	0.88	1.68

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	0.100	0.100	0.100
Reserves & Surplus	1.185	2.218	2.915
Share Application money pending allotment	16.767	17.400	0.000
Net worth	18.052	19.718	3.015
long-term borrowings	0.000	0.155	17.465
Short term borrowings	0.358	1.674	40.313
Total borrowings	0.358	1.829	57.778
Debt/Equity ratio	0.020	0.093	19.164

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)
Total Income	95.933	118.264	330.282
		23.278	179.275

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Total Income	95.933	118.264	330.282
Profit	1.065	1.033	0.697
	1.11%	0.87%	0.21%

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	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 four 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

UNSECURED LOAN

PARTICULARS	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Other Loans From Directors
Sasivarman Account	8.700	0.000
Sathyaseelan Account	8.700	0.000
Total	17.400	0.000

CORPORATE INFORMATION

BUSINESS ACTIVITY

The Company is doing the business of Purchase, Manufacture and Sale of Power Loom Cloth and Job work of weaving and Sizing.

OPERATIONS

The Company has achieved sales of Rs.330.300 Million as compared to the previous year of Rs.118.300 Million.

PLACE OF BUSINESS

The Company has registered office and Factory office at No.3/111-C, Andipalayam, Mangalam Road, Tirupur – 641687, Tamilnadu, India

REVIEW OF OPERATION

The Company achieved sales and other income of Rs.330.282 Million (Rs.118.264 Million) during the year, It has plans to achieve greater targets and reach new heights in the coming year.

FINANCE

During the year, the company has been availed Short Term and Long Term Financial Assistance from Bank for expansion and modernization projects.

VIEW INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10441021	04/12/2013 *	50,000,000.00	CITY UNION BANK LIMITED	94 COURT STREET,, TIRUPUR, TAMIL NADU - 641601, IN  DIA	B92269398
2	10418366	08/04/2013	17,500,000.00	CITY UNION BANK LIMITED	94 COURT STREET,, TIRUPUR, TAMIL NADU - 641601, IN  DIA	B72768740

* Date of charge modification

FIXED ASSETS

• Building - I
• Building - II
• Computer
• Electrical & Fittings
• Fax Machine
• Furniture
• Plant & Machinery
• Vehicles
• Telephone Equipments

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.63.39
UK Pound	1	Rs.98.94
Euro	1	Rs.70.33

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	DIV
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	3
--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	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		28

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.