MIRA INFORM REPORT

Report No. :	346061
Report Date :	24.10.2015

IDENTIFICATION DETAILS

Name :	LAKSHMIVEL MILLS PRIVATE LIMITED
Registered Office :	No. 92/4, Angeripalayam Road, Opposite Bishop School, Tirupur-641603, Tamilnadu
Tel. No.:	91-4294-245703
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	03.03.2006
Com. Reg. No.:	18-012634
Capital Investment / Paid-up Capital :	Rs. 119.519 Million
CIN No.: [Company Identification No.]	U17111TZ2006PTC012634
IEC No.:	3207004865
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AABCL1850B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of combed cotton yarn of Hosiery Variety.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (29)

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. The company has incurred continuous losses from its operations. However, the capital structure of the company has been improving over the years with low gearing. Further, the company has reported healthy growth in its sales revenue base along with healthy cash accruals from its operations in FY14 leading to overall improvement. Trade relations are fair. Business is active. Payment terms are reported to be slow but correct. In view of aforesaid, the company can be considered 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	ICRA
Rating	Long Term Rating=BB-
Rating Explanation	Inadequate credit quality and high credit risk
Date	February, 2015
Rating Agency Name	ICRA
Rating	Short Term Rating=A4
Rating Explanation	Minimal degree of safety and very high credit risk
Date	February, 2015

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 DECLINED

MANAGEMENT NON-COOPERATIVE

(Contact No: 91-4294-245703)

LOCATIONS

Registered Office :	No. 92/4, Angeripalayam Road, Opposite Bishop School, Tirupur-641603, Tamilnadu, India
Tel. No.:	91-4294-245703/ 704
Fax No.:	91-4294-245702
E-Mail :	srinu_ca2002@yahoo.co.in
Factory :	98-99, Kullampalayam Village, Perundurai-638052, Tamilnadu, India

DIRECTORS

AS ON 29.09.2014

Name :	Mr. Govindasamy Sakthivel
Designation :	Managing director
Address :	No.92/4, Angeripalayam Road, Opposite Bishop School, Tirupur-641603, Tamilnadu, India
Date of Birth/Age :	19.12.1964
Date of Appointment :	03.03.2006
PAN No.:	AHFPS4192R
DIN No.:	00488661
Name :	Mr. Sakthivel Punithavathi
Designation :	Director
Address :	No.92/4, Angeripalayam Road, Opposite Bishop School, Tirupur-641603, Tamilnadu, India
Date of Birth/Age :	20.08.1972
Date of Appointment :	03.03.2006
PAN No.:	AICPP9725H
DIN No.:	00527821

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2014

NOTE: SHAREHOLDING DETAILS FILE ATTACHED

AS ON 29.09.2014

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	26.98
Directors or relatives of directors	69.67
Other top fifty shareholders	3.35
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of combed cotton yarn of Hosiery Variety.

Products :

ITC Code No.	Product Descriptions
58023000	Textile Fabrics

Brand Names :

--

Agencies Held :

--

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	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 (Designation):	Not Divulged
Contact Number:	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 :

Bank Name:	Canara Bank
Branch:	SME Branch, Perundurai - 638052, 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 A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks:	Not Divulged

· Axis Bank Limited

· State Bank of India

· HDFC Bank Limited

· South Indian Bank

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
Term loans from banks	280.324	335.181
SHORT TERM BORROWINGS
Term loans from banks	129.382	80.764
Total	409.706	415.945

Banking Relations :	--
Auditors :
Name :	P. Srinivasarao and Company Chartered Accountants
Address :	16-23-65/1, Road No.1, Ayodhya Nagar, Kakinada- 533001, Andhra Pradesh, India
Income-tax PAN of auditor or auditor's firm :	AKFPP3792D
Memberships :	--
Collaborators :	--
Other Related Parties :	· CIBI International Private Limited, India (U18101TZ2010PTC016101) · Gugan Knitwears Private Limited, India (U17219TZ1998PTC008512)

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1,500,000	Equity Shares	Rs. 100/- each	Rs. 150.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,195,190	Equity Shares	Rs. 100/- each	Rs. 119.519 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	119.519	110.459	110.459
(b) Reserves & Surplus	145.153	(58.964)	(42.339)
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	246.500	246.500
Total Shareholders’ Funds (1) + (2)	264.672	297.995	314.620
(3) Non-Current Liabilities
(a) Long-term borrowings	280.324	359.540	105.335
(b) Deferred tax liabilities (Net)	7.357	5.209	12.053
(c) Other long term liabilities	92.365	91.203	49.347
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	380.046	455.952	166.735
(4) Current Liabilities
(a) Short term borrowings	129.382	80.764	396.673
(b) Trade payables	0.000	0.000	18.186
(c) Other current liabilities	0.000	0.000	5.751
(d) Short-term provisions	9.056	5.682	0.000
Total Current Liabilities (4)	138.438	86.446	420.610
TOTAL	783.156	840.393	901.965
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	275.678	315.807	362.834
(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	2.766	4.215	0.100
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	4.127	5.927	0.000
(e) Other Non-current assets	2.739	2.408	386.641
Total Non-Current Assets	285.310	328.357	749.575
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	150.129	98.757	112.732
(c) Trade receivables	336.293	408.197	9.059
(d) Cash and cash equivalents	10.933	4.530	4.793
(e) Short-term loans and advances	0.000	0.000	0.000
(f) Other current assets	0.491	0.552	25.806
Total Current Assets	497.846	512.036	152.390
TOTAL	783.156	840.393	901.965

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Turnover	975.800	837.129	530.942
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX		NA	NA	NA
Less	TAX		NA	NA	NA
	PROFIT AFTER TAX		(11.175)	(23.469)	(50.955)
	Earnings Per Share (Rs.)		(9.35)	(2.12)	(4.61)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	NA	NA	NA
Cash Generated from Operations	NA	NA	NA
Net Cash Flow from (used in) Operations	71.511	89.468	106.034

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	NA	(2.80)	(9.60)
Debt Equity Ratio (Total Debt/Networth)		1.55	1.48	1.60
Current Ratio (Current Asset/Current Liability)		3.60	5.92	0.36

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	110.459	110.459	119.519
Reserves & Surplus	(42.339)	(58.964)	145.153
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	246.500	246.500	0.000
Net worth	314.620	297.995	264.672
Long-term borrowings	105.335	359.540	280.324
Short term borrowings	396.673	80.764	129.382
Total borrowings	502.008	440.304	409.706
Debt/Equity ratio	1.596	1.478	1.548

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)
Turnover	530.942	837.129	975.800
		57.669	16.565

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Turnover	530.942	837.129	975.800
Profit	(50.955)	(23.469)	(11.175)
	(9.60%)	(2.80%)	(1.15%)

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	Yes
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	Yes
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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10053757	13/03/2015 *	723,300,000.00	CANARA BANK	SME BRANCH,, PERUNDURAI- 638011, TAMILNADU, INDIA	C51910172

* Date of charge modification

UNSECURED LOANS

PARTICULARS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
Term loans from others	0.000	24.359
Total	0.000	24.359

FINANCIAL RESULTS:

The company has met a Loss of Rs. 11.175 Million, for the Year ended 31.3.2014. The directors of the company are in expectation for the better performance and profits in the subsequent years.

PERFORMANCE OF THE COMPANY:

The Total Gross Sales of the company for the year ended 31.3.2014 was 9,75.800 Million compared to the previous year 8,37.100 Million. The directors of the company are in expectation for the better performance in the subsequent years.

FIXED ASSETS:

Tangible Assets

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Computer Equipments

· Other 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. 64.88
UK Pound	1	Rs. 99.89
Euro	1	Rs. 72.06

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	KIN
Report Prepared by :	IND

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--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		29

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.