MIRA INFORM REPORT

Report No. :	342544
Report Date :	25.09.2015

IDENTIFICATION DETAILS

Name :	EMPEROR TEXTILES PRIVATE LIMITED
Registered Office :	No. 16, (Old No. 1), Indira Nagar, 1^st Street, Avinashi Road, Tirupur – 641603, Tamilnadu
Tel. No.:	91-421-4309229/2236733
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	17.06.2005
Com. Reg. No.:	18-011914
Capital Investment / Paid-up Capital :	Rs. 180.000 Million
CIN No.: [Company Identification No.]	U17111TZ2005PTC011914
IEC No.:	0488025800
TIN No:	33222306873
CST No:	851952
TAN No.: [Tax Deduction & Collection Account No.]	CMBE03524D
PAN No.: [Permanent Account No.]	AABCE4867B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of home textiles, accessories, garments and woven fabrics.
No. of Employees :	500 more than (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 Behavior :	Slow but correct
Litigation :	Clear
Comments :	Subject was incorporated in the year 2005. It is engaged into business of manufacturing of home textiles, accessories, garments and woven fabrics. The company has incurred loss for both the financial year 2014 and 2013 along with below average performance. It has low networth base marked by increase in its borrowings. However, rating weakness partially offset by experience of the promoters in the textile industry backed by integrated production facilities along with established relationship with customers and suppliers and diversified product offerings. However trade relations are fair. Business is active. Payment are reported to be 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 – 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	CARE
Rating	Long-term Bank Facilities : “BB-”
Rating Explanation	Inadequate credit risk and high credit risk.
Date	24.08.2015

Rating Agency Name	CARE
Rating	Short-term Bank Facilities : “A4”
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	24.08.2015

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 PARTED BY (GENERAL DETAILS)

Name :	Mr. Murlidharan
Designation :	Accounts Manager
Contact No.:	91-421-4309229
Date :	24.09.2015

LOCATIONS

Registered Office :	No. 16, (Old No. 1), Indira Nagar, 1^st Street, Avinashi Road, Tirupur – 641603, Tamilnadu, India
Tel. No.:	91-421-4309229/2236733
Mobile No.:	Not Available
Fax No.:	91-421-2244801
E-Mail :	ho.finance@emperor.in
Website :	http://www.emperor.in
Factory :	Located at : Veerapandi Village Tirupur, Tamilnadu

DIRECTORS

AS ON 04.07.2014

Name :

Appaiah Chettiar Palaniswamy

Designation :

Director

Address :

Old No.33, New No.28, Indira Nagar Iind Street, Avanashi Road, Tirupur - 641603, Tamilnadu, India

Date of Appointment :

29.04.2011

DIN No.:

00132962

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	U17111TZ1994PTC005683	EMPEROR SPINNERS PRIVATE LIMITED	Managing director	17/06/2005	17/06/2005	-	Amalgamated	NO
2	U17111TZ2005PTC011914	EMPEROR TEXTILES PRIVATE LIMITED	Director	29/04/2011	17/06/2005	-	Active	NO
3	U17299KA2008PTC046051	BW CLOTHING PRIVATE LIMITED	Managing director	15/04/2008	15/04/2008	-	Strike off	NO

Name :

Palanisamy Karthikeyan

Designation :

Managing Director

Address :

Old No.33, New No.28, Indira Nagar Iind Street, Avanashi Road, Tirupur - 641603, Tamilnadu, India

Date of Birth/Age :

21.11.1975

PAN No:

AHYPK3325M

Date of Appointment :

01.01.2015

DIN No.:

00132988

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	U17111TZ2005PTC011914	EMPEROR TEXTILES PRIVATE LIMITED	Managing director	01/01/2015	17/06/2005	-	Active	NO
2	U17111TZ1994PTC005683	EMPEROR SPINNERS PRIVATE LIMITED	Additional director	17/06/2007	17/06/2007	-	Amalgamated	NO
3	U17299KA2008PTC046051	BW CLOTHING PRIVATE LIMITED	Director	15/04/2008	15/04/2008	-	Strike off	NO
4	U18101TZ2011PTC017335	Italian Luxury Garment Private Limited	Managing director	11/08/2011	11/08/2011	-	Strike off	NO

Name :

Palaniswamy Krishnaraj

Designation :

Whole-Time Director

Address :

Old No.33, New No.28, Indira Nagar Iind Street, Avanashi Road, Tirupur - 641603, Tamilnadu, India

Date of Birth/Age :

06.06.1978

PAN No:

AFWPK0993B

Date of Appointment :

01.01.2015

DIN No.:

00132998

Name :

Palaniswamy Vimala

Designation :

Director

Address :

Old No.33, New No.28, Indira Nagar, Avanashi Road, Tirupur - 641603, Tamilnadu, India

Date of Appointment :

14.12.2005

DIN No.:

00133005

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	U17111TZ1994PTC005683	EMPEROR SPINNERS PRIVATE LIMITED	Director	14/12/2005	14/12/2005	-	Amalgamated	NO
2	U17111TZ2005PTC011914	EMPEROR TEXTILES PRIVATE LIMITED	Director	14/12/2005	14/12/2005	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Murlidharan
Designation :	Accounts Manager

MAJOR SHAREHOLDERS

AS ON 04.07.2014

Names of Shareholders	No. of Shares	% Age Holding
A Palaniswamy	1255000	69.72
P Karthikeyan	230000	12.78
P Krishnaraj	115000	6.39
P Vimala	200000	11.11
Total	1800000	100.00

Equity Share Break up (Percentage of Total Equity)

AS ON 04.07.2014

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of home textiles, accessories, garments and woven fabrics.

Products :

Item Code No.	Product Description
52091100	Woven Fabrics of Cotton

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Products :

Finished Goods

Countries :

• United States of America
• European Countries

Imports :

Products :

Raw Material

Countries :

• China

Terms :

Selling :

L/C and Credit

Purchasing :

L/C and Credit

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Prabhu Spinning Mills Private Limited, Tamilnadu, India
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

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 :

500 more than (Approximately)

Bankers :

Bank Name	Punjab National Bank
Branch	AGMO, 774, Oppannakara Street, Coimbatore - 641001, Tamilnadu, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	0098002100580890 (Not Confirmed)
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
Rupee term loans from banks	23.784	46.324
Short-term borrowings
Foreign currency term loans from banks	19.107	10.866
Loans repayable on demand	75.510	73.729
Total	118.401	130.919

Auditors :
Name :	P.S.Krishnan and Company Chartered Accountants
Address :	No.40A, Kurinji Towers, Appachi Nagar Main Road, Tirupur- 641607, Tamilnadu, India
PAN. No.:	AAFFP1860J
Memberships :	-----
Collaborators :	-----
Associates:	Chokkanur Weaving Factory

CAPITAL STRUCTURE

AS ON 04.07.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1800000	Equity Shares	Rs.100/- each	Rs. 180.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1800000	Equity Shares	Rs.100/- each	Rs. 180.000 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	180.000	180.000	180.000
(b) Reserves & Surplus	(85.482)	(65.851)	(62.843)
(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)	94.518	114.149	117.157
(3) Non-Current Liabilities
(a) long-term borrowings	281.551	263.243	309.636
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.850	0.099	0.379
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	282.401	263.342	310.015
(4) Current Liabilities
(a) Short term borrowings	94.617	84.595	50.295
(b) Trade payables	7.473	17.315	20.589
(c) Other current liabilities	67.085	64.397	50.924
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	169.175	166.307	121.808
TOTAL	546.094	543.798	548.980
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	260.655	280.592	292.334
(ii) Intangible Assets	2.563	0.565	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	1.860	1.860	1.860
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	9.563	8.955	10.432
(e) Other Non-current assets	6.961	2.435	2.001
Total Non-Current Assets	281.602	294.407	306.627
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	191.553	176.786	180.852
(c) Trade receivables	21.354	19.097	24.677
(d) Cash and cash equivalents	19.325	11.686	8.036
(e) Short-term loans and advances	7.213	8.467	4.910
(f) Other current assets	25.047	33.355	23.878
Total Current Assets	264.492	249.391	242.353
TOTAL	546.094	543.798	548.980

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	GROSS TURNOVER AND RECEIPTS	524.520	570.195	462.924
Less	EXPENSES	NA	NA	NA
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	39.300	56.203	37.602
Less	INTEREST	24.877	26.774	31.318
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	14.423	29.429	6.284
Less/ Add	DEPRECIATION/ AMORTISATION	33.437	32.202	27.716
	PROFIT / (LOSS) FOR THE YEAR BEFORE EXTRA ORDINARY ITEM	(19.014)	(2.773)	(21.432)
Less/ Add	EXTRA ORDINARY ITEM AND TAX	0.287	0.235	7.001
	PROFIT/ (LOSS) BEFORE TAX	(19.301)	(3.008)	(28.433)
Less	TAX	0.600	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX	(19.631)	(3.008)	(28.433)
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	285.944	389.375	337.686
	TOTAL EARNINGS	285.944	389.375	337.686
	Earnings / (Loss) Per Share (Rs.)	(10.90)	(1.67)	(20.75)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	23.362	23.366	5.841
Cash generated from operations	NA	NA	NA
Net cash flow from (used in) operations	(1.429)	17.830	20.784

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	3.74	0.53	6.14
Return on Total Assets (PBT/Total Assets}	(%)	(3.50)	(0.56)	(3.92)
Return on Investment (ROI) (PBT/Networth)		(0.20)	(0.03)	(0.18)
Debt Equity Ratio (Total Debt /Networth)		3.98	3.05	3.07
Current Ratio (Current Asset/Current Liability)		1.56	1.50	1.99

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	180.000	180.000	180.000
Reserves & Surplus	(62.843)	(65.851)	(85.482)
Share Application money pending allotment	0.000	0.000	0.000
Net worth	117.157	114.149	94.518
long-term borrowings	309.636	263.243	281.551
Short term borrowings	50.295	84.595	94.617
Current maturities of long-term debts	5.841	23.366	23.362
Total borrowings	365.772	371.204	399.530
Debt/Equity ratio	3.122	3.252	4.227

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)
Gross Turnover and Receipts	462.924	570.195	524.520
		23.172	(8.010)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Gross Turnover and Receipts	462.924	570.195	524.520
Profit	(28.433)	(3.008)	(19.631)
	(6.14%)	(0.53%)	(3.74%)

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	Yes
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	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
Loans repayable on demand	1.986	0.000
Loans and advances from related parties	255.781	216.919
Total	257.767	216.919

OPERATIONS:

The Company has achieved a turnover of Rs. 524.520 Million during the year under consideration as against Rs.570.195 Million in the previous year. The net loss of the year after considering extra-ordinary item is Rs.19.301 Million as compared to that of the previous year Rs.3.008 Million.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10036389	30/12/2014 *	281,572,000.00	PUNJAB NATIONAL BANK	774, OPPANNAKARA STREET, COIMBATORE -  641001, TAMIL NADU, INDIA	C45776614

* Date of charge modification

FIXED ASSETS

Tangible Assets

• Land
• Buildings
• Plant and equipment
• Furniture and fixtures
• Vehicles
• Office equipment

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. 66.09
UK Pound	1	Rs. 100.89
Euro	1	Rs. 73.96

INFORMATION DETAILS

Information Gathered by :	SUP
Analysis Done by :	AMR
Report Prepared by :	SANS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
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	YES
--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 unfavorable 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.