MIRA INFORM REPORT

Report No. :	342081
Report Date :	26.09.2015

IDENTIFICATION DETAILS

Name :	LOTUS KNITS

Registered Office :	10/576, Mullai Nagar, Ganapathipalayam Road, Veerapandi Post, Tirupur – 641605, Tamilnadu
Tel. No.:	91-421-2218118

Country :	India

Financials (as on) :	31.03.2014

Date of Incorporation:	11.03.2000

Capital Investment / Paid-up Capital :	Rs. 125.999 Million

TIN No.:	33546242084

IEC No.:	3200000520

TAN No.: [Tax Deduction & Collection Account No.]	Not Available

PAN No.: [Permanent Account No.]	AABFL1083D

Legal Form :	Partnership Concern with an Unlimited Liability of the Partners

Line of Business :	Subject is engaged into manufacturing, knitting and processing of fabrics and also engaged into providing vast types of printing and finishing services including sublimation printing, reactive printing, pigment printing, peach finishing, etc.

No. of Employees :	Approximately 98 (In Office :10, In Factory : 88)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 360000

Status :	Satisfactory

Payment Behaviour :	Usually correct

Litigation :	Clear

Comments :	Subject was established in the year 2000 as a partnership concern. The concern has a steady growth in sales turnover along with profitability margin of 14.8% in the FY - 14. Rating takes into consideration healthy capital structure backed by experience of partners into business. Trade relations are fair. Business is active. Payments are usually correct. In view aforesaid, the concern 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 – March 31, 2015

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

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

Name :	Mr. S.Senthil Kumar
Designation :	Managing Partner
Contact No.:	91-9842266236
Date :	23.09.2015

LOCATIONS

Registered Office :	10/576, Mullai Nagar, Ganapathi Palayam Road, Veerapandi Post, Tirupur – 641605, Tamilnadu, India
Tel. No.:	91-421-2218118
Mobile No.:	91-9842266236 (Mr. Ashok Kumar)
Fax No.:	Not Available
E-Mail :	office@lotusknits.in
Website :	http://www.lotusknits.in
Location :	Owned

Factory 1:	Lotus Knits(Stenter Division) SF No.376/1C2, Avarappalayam, Veerapandi Post, Tirupur - 641605, Tamilnadu, India
E-Mail :	process@lotusknits.in
Area :	15000 Sq. Ft.
Location :	Owned

Factory 2:	Lotus Knits (Sueding and Printing Division) 2/27B, Notchipalayam Road, Veerapandi Post, Tirupur – 641605, Tamilnadu, India
E-Mail :	digitalprint@lotusknits.in
Area :	15000 Sq. Ft.
Location :	Leased

Printing Division:	371/4, Nochipalayam Road, Veerapandi Post, Tirupur - 641605, Tamilnadu, India
Tel No.:	91-421-2218118, 2218119
Email:	digitalprint@lotusknits.in

PARTNERS

Name :	Mr. S. Senthil Kumar
Designation :	Partner
Address :	7/460, Thamarai Illam Sultanpet, Sulur Tk Coimbatore - 641669, Tamilnadu, India
Date of Birth/Age :	23.05.1978
Qualification :	B.E.
Experience :	20 Years

Name :	Mrs. N. Chandra
Designation :	Managing Partner
Address :	7/460, Thamarai Illam Sultanpet, Sulur Tk Coimbatore - 641669, Tamilnadu, India
Date of Birth/Age :	15-02-1952
Qualification :	B.SC
Experience :	20 Years

BUSINESS DETAILS

Line of Business :	Subject is engaged into manufacturing, knitting and processing of fabrics and also engaged into providing vast types of printing and finishing services including sublimation printing, reactive printing, pigment printing, peach finishing, etc.

Products/Services :	Fabric Digital Textile Printing

Brand Names :	Not Available

Agencies Held :	Not Available

Exports :	Not Available

Imports :
Products :	Machinery Sublimation paper Machinery
Countries :	United States of America Switzerland Italy

Terms :
Selling :	Credit (90 Days)

Purchasing :	L/C and Cash

PRODUCTION DETAILS:

Products

Installed Capacity

Actual Production Per day

Digital Textile Printing

Fabric processing like Sueding, Stenter finish, Compacting

6000 mts/ day

36 tonnes

5000 mts/day

27 tonnes

GENERAL INFORMATION

Suppliers :

Navis Global
Tubetex Cham Paper
MS s.r.l, Mario Crosta Ferraro, Monti Antonio, Bianco
A P R Textilrs
Alfine Knit Private Limited
G G Fashion
Sri Laxmi Devi Clothing Private Limited
Twowin Export
New Look Fashion
Shahi Exports Private Limited

Reference :	R. Kalaivani
Name of the Person :	Mr. Sekar
Contact No.:	91-9363050830 (Ringing)
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Reference :

Kalyanam and Company, Tirupur Tamilnadu, India

Name of the Person :

Mr. Prakash (Manager)

Contact No.:

91-421-2215140

Since How Long Known :

5 Years

Maximum Limit Dealt :

Not Divulged

Experience :

Product Quality	Delivery Behaviors	Overall
Good	Good	Good

Remark:

As claimed by Mr. Prakash (Manager) that he is satisfied with subject company

Customers :

End Users and Others (Garment Manufacturer)

Apollo Knits
B.J Textiles Company Limited
Balaji Impex
Alli Knit Wears
Pranav Garments
Mittal Clothing Company

Reference :

Divya Polymers, Tirupur

Name of the Person :

Mr. Ravi (Manager)

Contact No.:

91-9943040547

Since How Long Known :

10 Years

Maximum Limit Dealt :

Experience :

Product Quality	Delivery Behaviors	Overall
Good	Good	Good

Remark:

As claimed by Mr. Ravi (Manager) that he is satisfied with subject company

Reference :	Dhaval Colour Chem Private Limited
Name of the Person :	Not Divulged
Contact No.:	91-421-2233565 (Not Responding)
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

Approximately 98 (In Office :10, In Factory : 88)

Bankers :

State Bank of India, SME Branch, Uthukuli Road, Tirupur, Tamilnadu, India
Allahabad Bank

Bank Name	City Union Bank Limited
Branch	Palladam Branch, Near Palladam Municipality, Palladam, Tirupur– 641664, 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)	Term Loan Rs. 50.000 Million
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Auditors :

Name 1 :

R.Sivaraj

Chartered Accountant

Address :

1/1 Binny Compound ,Kumaran Road ,Tirupur -641601, Tamilnadu, India

Tel. No.:

91-421-2201420

E-Mail :

rrsivaraj1@gmail.com

Qualification:

B.Com, FCA

Name 2 :

V. Krishnan

Chartered Accountant

Memberships :

Not Available

Collaborators :

Not Available

Other Related Parties:

Fabtech International

PAN No.:AAAFF5520A

Fbtech International Hosieries Private Limited

PAN No.:AABCF0339D

Fabfit Apparels India Private Limited

PAN No.:AAACF4196K

Thamarai Traders

PAN No.:ADKPC4003C

Thamarai Colours, 10/576 B, Mullai Nagar, Ganapathipalayam Road, Veerapandi Post, Tirupur, Tamilnadu, India

PAN No.:APFPS5401M

CAPITAL STRUCTURE

As on. 31.03.2014

Particulars	Amount In Million
N. Chandra Capital A/c	37.500
N. Chandra Current A/c	24.687
S. Senthilkumar Capital A/c	37.500
S. Senthilkumar Capital A/c	26.312

Total	125.999

FINANCIAL DATA

[all figures are in Rupees Million]

Note : Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Partner’s Capital		125.999	101.414
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		125.999	101.414
LOAN FUNDS
1] Secured Loans		50.364	27.835
2] Unsecured Loans		0.250	0.250
TOTAL BORROWING		50.614	28.085
DEFERRED TAX LIABILITIES

TOTAL		176.613	129.499

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		103.258	63.886
Capital work-in-progress		0.000	0.000

INVESTMENT		0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1.581	0.944
	Sundry Debtors	51.690	50.572
	Cash & Bank Balances	17.706	8.471
	Other Current Assets	0.000	0.000
	Loans & Advances	15.723	16.283
Total Current Assets		86.700	76.270
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities
	Provisions
Total Current Liabilities		13.345	10.657
Net Current Assets		73.355	65.613

MISCELLANEOUS EXPENSES		0.000	0.000

TOTAL		176.613	129.499

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013
	SALES
	Income	174.885	130.506
	Other Income	1.083	1.102
	TOTAL	175.968	131.608

Less	EXPENSES
	Cost of Goods Sold	50.099	38.326
	Compacting Charges Paid	2.282	1.489
	Curing Charges	0.205	0.689
	Electricity Charges	7.196	5.761
	Fire Wood Broken Charges	0.763	0.292
	Gas Cylinder Expenses	0.625	0.274
	Joining Charges	0.727	0.431
	Knitting Charges	0.255	0.942
	Packing Expenses	0.792	0.198
	Power and Fuel	9.069	7.490
	Slit Open Charges	0.111	0.007
	Wages	0.699	0.502
	Wages and Salary	4.152	3.196
	Washing Charges	4.763	4.469
	Indirect Sources	43.478	28.438
	TOTAL	125.216	92.504

Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	50.752	39.104

Less	INTEREST	4.472	3.546

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	46.280	35.558

Less/ Add	DEPRECIATION/ AMORTISATION	12.693	10.063

	PROFIT/ (LOSS) BEFORE TAX	33.587	25.495

Less	TAX	7.678	7.501

	PROFIT/ (LOSS) AFTER TAX	25.909	17.994

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013
PARTICULARS
Net Profit Margin (PAT / Sales)	(%)	14.81	13.79

Operating Profit Margin (PBIDT/Sales)	(%)	29.02	29.96

Return on Total Assets (PBT/Total Assets}	(%)	38.74	33.43

Return on Investment (ROI) (PBT/Networth)		0.27	0.25

Debt Equity Ratio (Total Debt /Networth)		0.40	0.28

Current Ratio (Current Asset/Current Liability)		6.38	6.99

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Share Capital	101.414	125.999
Reserves & Surplus	0.000	0.000
Net worth	101.414	125.999

Secured Loans	27.835	50.364
Unsecured Loans	0.250	0.250
Total borrowings	28.085	50.614
Debt/Equity ratio	0.277	0.402

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales Turnover	130.506	174.885
		34.005

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales Turnover	130.506	174.885
Profit	17.994	25.909
	13.79%	14.81%

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	Yes
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	Yes
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	NO
26	Turnover of firm for last two years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last two years	Yes
30	Major shareholders, if available	No
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

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.66.09
UK Pound	1	Rs.100.88
Euro	1	Rs.73.95

INFORMATION DETAILS

Information Gathered by :	KAM

Analysis Done by :	TRI

Report Prepared by :	RKI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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		45

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.

MIRA INFORM REPORT

1.581

0.944

51.690

50.572

17.706

8.471

0.000

0.000

15.723

16.283

73.355

65.613

Unit