MIRA INFORM REPORT

Report No. :	342052
Report Date :	23.09.2015

IDENTIFICATION DETAILS

Name :	RESHMI INDUSTRIES (INDIA) PRIVATE LIMITED
Registered Office :	7 Ammankulam Road, Pappanaickenpalayam, Coimbatore - 641037, Tamilnadu
Tel. No.:	91-422-3251294/96
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	24.03.2000
Com. Reg. No.:	18-009264
Capital Investment / Paid-up Capital :	Rs. 5.000 Million
CIN No.: [Company Identification No.]	U29269TZ2000PTC009264
IEC No.:	3203005263
TIN No.:	33401781131
CST No.:	268377 (Dated 01.04.2000)
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Sewing Thread and Post Spinning Winding Machinery
No. of Employees :	150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (15)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow and delayed
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company has reported profits for the year 2014 which shows an improvement in its operational performance by covering losses incurred during previous year. However, rating remained constrained on account of company’s weak financial risk profile marked by negative networth base and leverage balance sheet profile of the company. Business is active. Payment terms are reported to be slow and delayed. In view of weak financial position, company can be considered for business dealings on safe and secured 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	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 31-03-2015.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Asan Mohammed
Designation :	Assistant General Manager - Marketing
Contact No.:	91-9363244099
Date :	22.09.2015

LOCATIONS

Registered Office /Factory 1 :	7, Ammankulam Road, Pappanaickenpalayam, Coimbatore - 641037, Tamilnadu, India
Tel. No.:	91-422-3251294/96
Mobile No.:	91-9363244099 (Mr. Asan Mohammed)
Fax No.:	Not Available
E-Mail :	asan@reshnlindustries.com manjula@reshmiindustries.com
Website :	www.reshmiindustries.com
Location:	Owned
Factory 2:	S. F.No -274, Vilankurichi Road, Anna Private Industrial Estate, Coimbatore – 641035, Tamilnadu, India
Tel. No.:	91-422-4279071/3251294/2573966
Fax No.:	91-422-2513966

DIRECTORS

As on 30.09.2014

Name :	Mr. Kallikkat Balan Sajan
Designation :	Managing Director
Address :	7. Ammankulem Road, P.N. Palayam, Coimbatore – 641037, Tamilnadu, India
Date of Birth/Age :	01.07.1959
Date of Appointment :	24.03.2000
DIN No.:	01704732
Name :	Mrs. Mimi Sajan
Designation :	Director
Address :	7. Ammankulem Road, P.N. Palayam, Coimbatore – 641037, Tamilnadu, India
Date of Birth/Age :	29.05.1968
Date of Appointment :	24.03.2000
DIN No.:	00637826

KEY EXECUTIVES

Name :	Mr. Asan Mohammed
Designation :	Assistant General Manager - Marketing

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Names of Shareholders	No. of Shares	%age holding
Kallikkat Balan Sajan	35719	71.44
Mimi Sajan	14281	28.56
Total	50,000	100.00

Names of Allotees	No. of Shares
K.B. Sajan	50000
Total	50,000

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 of Sewing Thread and Post Spinning Winding Machinery
Products :	Sewing Thread Post Spinning Winding Machinery
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Finished Goods
Countries :	South Africa Japan Israel Iran Bangladesh Hong Kong Iraq Taiwan
Imports :
Products :	Raw Material
Countries :	Germany Dubai
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

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 :

End Users

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 :

150 (Approximately)

Bankers :

• Indian Bank

Bank Name	Axis bank Limited
Branch	Pappanaickenpalayam, Avinashi Road Coimbatore, 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 :

(Rs. In Million)

Secured Loan	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Term Loans:
From Bank
Term Loan From UTI - 460	7.255	13.391
Kodak Mahindra Loan – Indica Vista	0.000	0.319
Shriram City Union - Activa	0.000	0.014
SHORT TERM BORROWING
Axis Bank Cash Credit	14.334	14.268
Total	21.589	27.992

Auditors :
Name :	M. Alagiriswamy and Company Chartered Accountants
Address :	No.16, 6th Street, Tatabad, Coimbatore – 641012, Tamilnadu, India
Tel. No.:	91-2496106/ 2496306/ 2491461
Fax No:	91-422-2496305
Email:	maaudit@gmial.com
PAN N Income-tax PAN of auditor or auditor's firm :	ABYPA7181K
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

After 30.09.2014

Authorised Capital : Rs. 30.000 Million

Issued, Subscribed & Paid-up Capital : Rs. 30.000 Million

As on 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs. 10.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100/- each	Rs. 5.000 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	5.000	5.000	5.000
(b) Reserves & Surplus	(9.156)	(13.470)	(11.747)
(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)	(4.156)	(8.470)	(6.747)
(3) Non-Current Liabilities
(a) long-term borrowings	7.255	14.076	29.448
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	41.750	42.500	42.500
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	49.005	56.576	71.948
(4) Current Liabilities
(a) Short term borrowings	14.334	14.268	0.000
(b) Trade payables	21.166	18.234	21.532
(c) Other current liabilities	6.358	9.241	10.069
(d) Short-term provisions	3.580	1.966	3.052
Total Current Liabilities (4)	45.438	43.709	34.653
TOTAL	90.287	91.815	99.854
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	5.864	7.422	8.534
(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)	0.147	0.192	0.192
(d) Long-term Loan and Advances	0.683	0.513	0.379
(e) Other Non-current assets			1.116
Total Non-Current Assets	6.694	8.127	10.221
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	38.614	37.819	38.170
(c) Trade receivables	39.343	38.630	43.931
(d) Cash and cash equivalents	0.351	0.030	0.271
(e) Short-term loans and advances	4.126	4.026	4.621
(f) Other current assets	1.159	3.183	2.640
Total Current Assets	83.593	83.688	89.633
TOTAL	90.287	91.815	99.854

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	104.522	76.405	118.388
	Other Income	N.A	N.A	N.A
	TOTAL	N.A	N.A	N.A
Less	TOTAL EXPENSES	N.A	N.A	N.A
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	6.726	0.572	2.124
Less/ Add	DEPRECIATION/ AMORTISATION	1.085	2.296	1.419
	PROFIT/ (LOSS) BEFORE TAX	5.642	(1.724)	0.705
Less	TAX	1.328	0.000	0.147
	PROFIT/ (LOSS) AFTER TAX	4.315	(1.724)	0.558
	Earnings / (Loss) Per Share (Rs.)	86.3	(34.48)	11.16

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	N.A	N.A	N.A
Cash generated from operations	N.A	N.A	N.A
Net cash flow from operating activity	N.A	N.A	N.A

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	4.13	(2.26)	0.47
Return on Total Assets (PBT/Total Assets}	(%)	6.26	(1.88)	0.71
Return on Investment (ROI) (PBT/Networth)		(1.36)	0.20	(0.10)
Debt Equity Ratio (Total Debt /Networth)		(5.19)	(3.35)	(4.36)
Current Ratio (Current Asset/Current Liability)		1.84	1.91	2.59

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	5.000	5.000	5.000
Reserves & Surplus	(11.747)	(13.470)	(9.156)
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	(6.747)	(8.470)	(4.156)
long-term borrowings	29.448	14.076	7.255
Short term borrowings	0.000	14.268	14.334
Total borrowings	29.448	28.344	21.589
Debt/Equity ratio	(4.365)	(3.346)	(5.195)

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	118.388	76.405	104.522
		(35.462)	36.800

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	118.388	76.405	104.522
Profit	0.558	(1.724)	4.315
	0.47%	(2.26)%	4.13%

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	No
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	No
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	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

(Rs. In Million)

Particulars	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
From Bank
K.B. Sajan	0.000	0.352
Total	0.000	0.352

INDEX OF CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10001521	20/04/2006	5,000,000.00	UTI BANK LTD.	1095 AVINASHI ROAD, COIMBATORE, TAMILNADU - 641037, INDIA	A00513036
2	90007205	02/02/2015 *	26,500,000.00	AXIS BANK LIMITED	MCMC- COIMBATORE, 1133,1135,1136, AVINASHI ROAD, PAPPANAICKENPALAYAM, COIMBATORE, TAMILNADU - 641037, INDIA	C45261815

FIXED ASSETS

• Furniture and Building
• Computer
• Machinery
• Vehicle

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 records 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.65.62
UK Pound	1	Rs.101.73
Euro	1	Rs.73.26

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	HNA
Report Prepared by :	RKI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILITY	1~10	2
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	-
--CREDIT LINES	1~10	1
--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		15

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.