IRA INFORM REPORT

Report No. :	311363
Report Date :	12.03.2015

IDENTIFICATION DETAILS

Name :	SRI MATHA SPINNING MILLS PRIVATE LIMITED
Registered Office :	207, Mangalam Road, Karuvampalayam Tirupur, Coimbatore District-641604, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	02.11.1998
Com. Reg. No.:	18-008633
Capital Investment / Paid-up Capital :	Rs. 9.500 Million
CIN No.: [Company Identification No.]	U17111TZ1998PTC008633
TAN No.: [Tax Deduction & Collection Account No.]	CMBS05179G
PAN No.: [Permanent Account No.]	AAECS1881Q
Legal Form :	Private Limited Liability Company
Line of Business :
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 2300000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Management of the company has failed to file its latest financials with government department for FY 2014. As per available financials of 2013, general financial of the company is fair and it has good liquidity position backed by favorable gap between receivables and payables. Trade relations seem to be fair. Business is active. Payments are reported to be usually correct. 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 – 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	ICRA
Rating	Long Term Rating (A)
Rating Explanation	Adequate degree of safety and low credit risk
Date	December 2014
Rating Agency Name	ICRA
Rating	Short Term Rating (A1)
Rating Explanation	Very strong degree of safety and carry lowest credit risk.
Date	December 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 DENIED

MANAGEMENT NON CO-OPERATIVE (91-451- 2557002)

(91-4551- 260061)

LOCATIONS

Registered Office :	207, Mangalam Road, Karuvampalayam Tirupur, Coimbatore District-641604, Tamilnadu, India
Tel. No.:	91-421-2205032
Fax No.:	91-421-2205036
E-Mail :	ssmgroup@gmail.com ssmgroup@vsnl.com crohnny.bv2@gmail.com

DIRECTORS

As on: 16.09.2013

Name :	Ms. K. Indira
Designation :	Managing director
Address :	207, Mangalam Road, Karuvampalayam Tirupur, Coimbatore District-641604, Tamilnadu, India
Date of Birth/Age :	20.05.1954
Date of Appointment :	02.11.1998
PAN No.:	AAEPI7557A
DIN No.:	00436852
Name :	Mr. P.S. Veluswamy
Designation :	Director
Address :	207, Mangalam Road, Karuvampalayam Tirupur, Coimbatore District-641604, Tamilnadu, India
Date of Birth/Age :	05.06.1935
Date of Appointment :	02.11.1998
PAN No.:	ABLPV6651Q
DIN No.:	01468617
Name :	Mr. C. Kandaswamy
Designation :	Director
Address :	207, Mangalam Road, Karuvampalayam Tirupur, Coimbatore District-641604, Tamilnadu, India
Date of Birth/Age :	11.07.1943
Date of Appointment :	26.03.2014
PAN No.:	ABZPK8627R
DIN No.:	01575050
Name :	Ms. S. Kavitha
Designation :	Director
Address :	48, Kangayam Road, Tirupur – 641604, Tamilnadu, India
Date of Birth/Age :	09.06.1974
Date of Appointment :	24.01.2007
PAN No.:	AFFPK0046Q
DIN No.:	00429882
Name :	Mr. K. Sivaraj
Designation :	Director
Address :	207, Mangalam Road, Karuvampalayam Tirupur, Coimbatore District-641604, Tamilnadu, India
Date of Birth/Age :	07.05.1976
Date of Appointment :	02.11.1998
PAN No.:	AHFPS4129J
DIN No.:	01392806

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 16.09.2013

Names of Shareholders	No. of Shares
P.S. Veluswamy	8550
C. Kandaswamy	8550
V. Dhanalakshmi	8550
K. Indira	8550
S. Shanthi	7600
R. Geetha	7600
R. Umamaheshwari	7600
S. Kavitha	7600
K. Shanmugavel	8550
K. Sivaraj	8550
J. Jayalakshmi	7600
S. Veena Abirami	2850
S. Gowthami	2850
Total	95000

Equity Share Break up (Percentage of Total Equity)

As on: 16.09.2013

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Products :

Item Code No.	Product Description
125,40,22,023	Cotton Yarn
47,60,07,445	Knitted Fabric
18,81,41,337	OE Yarn

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

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 :

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 :

Not Divulged

Bankers :

State bank of India, SME Branch, Dingul – 624001, Tamilnadu, India

Facilities :

Secured Loan	31.03.2013 (Rs. in Million)	31.03.2012 (Rs. in Million)
Long-term Borrowings
Rupee term loans from banks	239.925	404.825
Short-term borrowings
Working capital loans from banks	415.897	191.650
Total	655.822	596.475

Auditors :
Name :	T. R. Ramanathan Chartered Accountants
Address :	'Bharathi Theertha Krupa' 343 B S Sundaram Road, Tirupur-641601, Tamilnadu, India
PAN N Income-tax PAN of auditor or auditor's firm :	ACSPR0567R
Memberships :	Not Available
Collaborators :	Not Available
Associates:	· Sudhan Spinning Mills Private Limited (U17111TZ1988PTC002135) · Sivaraj Spinning Mills Private Limited (U17111TZ1982PTC001195) · Adisankara Spinning Mills Private Limited (U17111TZ1995PTC005944) · S R I Velayudhaswamy Spinning Mills Private Limited (U17111TZ1988PTC002240) · Vedha Spinning Mills Private Limited (U17111TZ2001PTC009831)

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
95,000	Equity Shares	Rs.100/- each	Rs. 9.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
95,000	Equity Shares	Rs.100/- each	Rs. 9.500 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	9.500	9.500	9.500
(b) Reserves & Surplus	792.900	637.169	758.400
(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)	802.400	646.669	767.900
(3) Non-Current Liabilities
(a) Long-term borrowings	239.925	404.825	336.000
(b) Deferred tax liabilities (Net)	121.359	79.902	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)	361.284	484.727	336.000
(4) Current Liabilities
(a) Short term borrowings	415.897	191.650	931.229
(b) Trade payables	22.660	30.323	63.056
(c) Other current liabilities	152.397	117.602	72.056
(d) Short-term provisions	7.078	3.578	5.707
Total Current Liabilities (4)	598.032	343.153	1072.048
TOTAL	1761.716	1474.549	2175.948
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	598.643	725.898	842.037
(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	0.929	0.288	0.000
(c) Deferred tax assets (net)	0.000	0.000	1.514
(d) Long-term Loan and Advances	23.339	29.687	25.283
(e) Other Non-current assets	0.020	0.020	0.020
Total Non-Current Assets	622.931	755.893	868.854
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	506.949	264.868	1111.444
(c) Trade receivables	241.900	230.687	123.236
(d) Cash and cash equivalents	24.710	23.637	5.459
(e) Short-term loans and advances	364.732	199.087	66.499
(f) Other current assets	0.494	0.377	0.456
Total Current Assets	1138.785	718.656	1307.094
TOTAL	1761.716	1474.549	2175.948

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	NA	NA	NA
Less	EXPENSES		NA	NA	NA
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		419.323	144.019	429.840
Less	FINANCIAL EXPENSES		79.432	82.249	40.886
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		339.891	61.770	388.954
Less/ Add	DEPRECIATION/ AMORTISATION		129.853	140.409	134.554
	PROFIT/ (LOSS) BEFORE TAX		210.038	(78.639)	254.400
Less	TAX		54.307	42.592	2.132
	PROFIT/ (LOSS) AFTER TAX		155.731	(121.231)	252.268
	EARNINGS IN FOREIGN CURRENCY		292.732	133.651	190.413
	Earnings / (Loss) Per Share (Rs.)		1639.27	(1276.11)	2655.45

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Return on Total Assets (PBT/Total Assets}	(%)	11.93	(5.33)	11.70
Return on Investment (ROI) (PBT/Networth)		0.26	(0.12)	0.33
Debt Equity Ratio (Total Debt /Networth)		0.82	0.92	1.65
Current Ratio (Current Asset/Current Liability)		1.90	2.09	1.22

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	9.500	9.500	9.500
Reserves & Surplus	758.400	637.169	792.900
Net worth	767.900	646.669	802.400
long-term borrowings	336.000	404.825	239.925
Short term borrowings	931.229	191.650	415.897
Total borrowings	1267.229	596.475	655.822
Debt/Equity ratio	1.650	0.922	0.817

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	No
9]	Name of person contacted	No
10]	Designation of contact person	No
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	No
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	No
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

OPERATIONAL HIGHLIGHTS

Performance during the year registered positive growth in all respects compared to the previous year. With the gradual developments in demand for textiles coupled with better wind power generation, operations during the year yielded satisfactory results leaving a net surplus of Rs.155.700 Million as above.

During the year 2012-13(FY13) yarn production at 81.88 lakh Kgs witnessed an increase of about 8% over the previous year. Wind power generation also registered positive growth of about 14% over the previous year on account of improved performance of wind turbines throughout the year. As a result of enhanced production activities and a portion of value addition through knitted fabrics and low count open end yarn besides increase in trading activities, net sales for the year under consideration reached Rs.2011.700 Million as against Rs.1989.100 Million in the previous year.

While operating environment continued to be challenging in FY13 with grid problems deterring captive wind power consumption besides steep increase in cost of fuel and other major overheads, your company faced these challenges appropriately and diligently. Given the fact financial turbulence in 2011-12 impacted the core fiscal strength; the company tackled the challenges well and emerged successful with satisfactory results. The directors are hopeful of presenting further improved results for the year under progress in view of the recent positive developments in power sector and increasing demand for yarn. In order to improve the net worth of the company and to have adequate fiscal cushion to meet contingencies,

CONTINGENT LIABILITIES:

(Rs. in Million)

PARTICULARS	31.03.2014
Unredeemed Bank Guarantees	0.368
LC Bills discounted with banks	189.896
Fringe Benefit Tax	0.277
Total	190.541

INDEX OF CHARGES:

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10552561	02/03/2015	200,000,000.00	STATE BANK OF INDIA	SME BRANCH, NO.100,101, FIRST FLOOR, MUNICIPAL COLONY, NEHRUJI NAGAR, DINDIGUL, TAMIL NADU - 624001, INDIA	C45306255
2	10552558	02/03/2015	550,000,000.00	STATE BANK OF INDIA	SME BRANCH, NO.100,101, FIRST FLOOR, MUNICIPAL COLONY, NEHRUJI NAGAR, DINDIGUL, TAMIL NADU -624001, INDIA	C45304508
3	90008770	19/09/2013 *	1,256,000,000.00	STATE BANK OF INDIA	SME BRANCH, DINDIGUL, DINDIGUL, TAMIL NADU - 624001, INDIA	B85712537

* Date of charge modification

FIXED ASSETS:

· Land

· Building

· Factory building

· Plant and equipment

· Factory building

· Factory equipments

· Furniture and fixtures

· Vehicles

· Motor 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 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.621.75
UK Pound	1	Rs.94.60
Euro	1	Rs.67.10

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	SUM
Report Prepared by :	MTN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	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		46

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.