MIRA INFORM REPORT

Report Date :

17.11.2006

IDENTIFICATION DETAILS

Name :	GOKALDAS EXPORTS LIMITED
Now Known As :	GOKALDAS INDIA PRIVATE LIMITED
Registered Office :	70, Mission Road, Bangalore-560027, Karnataka
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	01.03.2004
Com. Reg. No.:	08-33475
CIN No.: [Company Identification No.]	U18101KA2004PTC033475
TAN No.: (Tax Deduction & Collection Account No.)	BLRG03671D
PAN No.: (Permanent Account No.)	AACCG0890N
Legal Form :	A public limited liability company. The company’s shares are listed on the Stock Exchange.
Line of Business :	Manufacturers, importers & exporters of textiles, readymade garments, knitwears, etc.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 13500000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Several member companies of Gokaldas Group merged into the subject and now it is listed on the Stock Exchanges. Trade relations are fair. Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms.

LOCATIONS

Registered Office :	70, Mission Road, Bangalore-560027, Karnataka, India
Tel. No.:	91-80-51272200/22223600-1-2/22237654/6984/51272215
Fax No.:	91-80-22274869/22277497
Email:	mvs@gokaldasexports.com gokex@vsnl.com gokex@gokaldasexports.com
Website :	http://www.gokaldasexports.com
Factory 1 :	1. No 38/41, Industrial Suburb, II Stage, Yeswantpur, Bangalore-22; Area: 120000 sft. 2. Dodddaballapur, Area:100000 sft 3. Hongasandra Vill, 7^th Mile, Hosur Road, Bangalore. Area: 70000 sft 4. MEPZ Special Economic Zone, Chennai, Area: 210000 sft

DIRECTORS

Name :	Mr. Madanlal J Hinduja
Designation :	Director – Fabric Design & Supply
Name :	Mr. Rajendra J Hinduja
Designation :	Director- Admn. Shipping & Finance
Name :	Mr. Dinesh J Hinduja
Designation :	Director
Name :	Mr. H S Nagraj
Designation :	Director
Name :	Mr. K P Kumar
Designation :	Director
Name :	Mr. Pradip P Shah
Designation :	Director
Name :	Mr. L Nandalal
Designation :	Company Secretary
Name :	Mr. Dinesh J Hinduja
Designation :	Executive Director - Production & Marketing
Name :	Mr. Ashwin R Hinduja
Designation :	Chief Operating Officer Production
Name :	Mr. Vivek M Hinduja
Designation :	Chief Operating Officer - Marketing
Name :	Mr. Gaurav D Hinduja
Designation :	Production Officer

MAJOR SHAREHOLDERS

As on 30.04.2006

Names of Shareholders	No of Shares	Percentage of Holding
Promoters	13218000	76.90 %
Resident Individuals	497459	2.89 %
Mutual Rinds	1311317	7.63 %
Bodies Corporates	981201	5.71 %
Foreign Institutional Investors	971437	5.65 %
HUF	192606	1.12 %
Non resident Indians	8901	0.05 %
Clearing Members	7034	0.05 %
Trusts	45	0.00 %
Total	17188000	100.00 %

Names of shareholders holding more than 1% with number of shares as on 30^th April 2006

Names of Shareholders	No of Shares	Percentage of Holding
Dinesh J Hinduja	3552290	20.67 %
Madanlal J Hinduja	2208300	12.85 %
Rajendra J Hinduja	2167290	12.61 %
Ashwin R Hinduja	2015780	1.73 %
Vivek M Hinduja	1975780	11.50 %
Gaurav D Hinduja	528000	3.07 %
Reliance Capital Trustee Company Limited	400000	2.33 %
ICICI Prudential Life Insurance Company Limited	352974	2.05 %
Nirmit Finvest & Property Private Limited	275000	1.60 %
Citi Group Global Markets Mauritius Private Limited	257750	1.50 %
The Master Trust Bank of Japan	248014	1.44 %
Dayawanthi J Hinduja	217780	1.27 %
DSP Merril Lynch Trustee Company Private Limited	213190	1.24 %
Nalini D Hinduja	202780	1.18 %

BUSINESS DETAILS

Line of Business :

Manufacturers, importers & exporters of textiles, readymade garments, knitwears, etc.

Product:

Item Code No. (ITC Code)	Product Description
620112	Jackets
620520	Shirts
620630	Blouses

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Readymade garments	PCS	--	--	21,422,878

GENERAL INFORMATION

Customer :

v Nike

v Mustang Jeans

v Mexx

v Arnold Palmer

v Pierre Cardin

v Polo Sport

v Mustang

v Greg Norman

v Joop Jeans

v Adidas

v Ralph Lauren

v Tommy Hilfiger

v Reebok

v Mothercare

v Rueh

v Hollister

v Oxbow

v New Yorker

v Paris Saint German

v Old Navy

v London Fog

v Gap

v Tom Tailor Banana Republic

v O'Neill

v Abercrombie & Fitch

v Champion

v Sears,Canada

v The Children’s Place

v Macy’s Merchandising Group

v Lebek

v Oilily

v George Asda

v VF Asia

v Decathlon

v Vetir

v M & S

v Diesel

v Sag Harbor

v Izod

v Replay

v H & M

v Tiffany

v Dewhirst

v Spykar

v The Metro Group

No. of Employees :

2900

Bankers :

Ø Canara Bank, Avenue Road Br., Bangalore-560002; Ph:2215925

Ø Citi Bank, M G Road, Bangalore

Ø HDFC Bank, Bangalore

Ø Standard Chartered Bank, Bangalore

Facilities :

	(Rs in millions)
SECURED LOANS
Packing Credit Loans from Banks [Secured by hypothecation of raw materials, finished goods & book debts]	1421.161
Term Loan from Banks (Under Technology Upgradation Fund Scheme) [Secured by hypothecation of specific fixed assets purchased under term loans]	126.598
UNSECURED LOANS
From Directors	446.117
From Others	196.231

Banking Relations :	Satisfactory
Auditors :	Girish Murthy & Kumar Chartered Accountants 4502, High Point, 45 Palace Road, Bangalore-560001
Tel. No.:	91-80-22265202
Associates /Subsidiaries:	Ø All Colour Garments Private Limited Ø Deejay Trading Private Limited Ø Glamourwear Apparels Private Limited Ø Madhin Trading Private Limited Ø Magenta Trading Private Limited Ø Rafter Trading Private Limited Ø Rajdin Apparels Private Limited Ø Reflexion Trading Private Limited Ø Rishikesh Apparels Private Limited Ø Seven Hills Clothing Private Limited Ø SNS Clothing Private Limited and Ø Vignesh Apparels Private Limited. Ø Dazzle Trading Private Limited Ø Dice Trading Private Limited Ø Hinduja Exports Private Limited Ø J.V.N. Exports Private Limited Ø Maze Trading Private Limited Ø Parichay Investments Limited Ø Polyproducts Private Limited Ø Rapple Trading Private Limited Ø Vag Exports Private Limited Ø Asiatic Exports Ø Carnival Clothing Company Ø Central Wearhouse Ø Euro Clothing Company Ø Global Garments Ø Hinduja Fashions Ø Hinduja Sportswear Ø Hinduja Trading Company Ø International Clothing Company Ø J.D. Clothing Company Ø New Generation Apparels Ø Sunshine Enterprises Ø Thelntex Ø Wear Craft Apparels Ø Indev Warehouse and Container Services Private Limited Ø The Unique Creations (Bangalore) Limited Ø Universal Exports (Bangalore) Limited
Membership:	Apparel & Leather Promotion Council

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
20,000,000	Equity Shares	Rs. 10/- each	Rs. 200.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
17,188,000	Equity Shares	Rs. 10/- each	Rs. 171.880 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	30-09-2004
SHAREHOLDERS FUNDS
1] Share Capital		171.880	140.630	100.000
2] Share Application Money		0.000	0.000	35.630
3] Reserves & Surplus		3283.307	1522.364	1251.500
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3455.187	1662.994	1387.130
LOAN FUNDS
1] Secured Loans		1547.759	1261.819	668.620
2] Unsecured Loans		642.348	643.585	625.740
TOTAL BORROWING		2190.107	1905.404	1294.360
DEFERRED TAX LIABILITIES		53.233	38.780	46.400
TOTAL		5698.527	3607.178	2727.890
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1465.381	895.114	746.960
Capital work-in-progress		137.101	21.263	0.000
INVESTMENT		931.847	309.899	0.530
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2674.788	1775.938	1508.740
	Sundry Debtors	561.568	576.650	468.100
	Cash & Bank Balances	70.440	204.124	164.970
	Other Current Assets	63.531	26.581	55.050
	Loans & Advances	399.719	324.940	474.720
Total Current Assets		3770.046	2908.233	2671.580
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	484.232	465.088	696.800
	Provisions	122.079	62.773
Total Current Liabilities		606.311	527.861	696.800
Net Current Assets		3163.735	2380.372	1974.780
MISCELLANEOUS EXPENSES		0.463	0.530	5.620
TOTAL		5698.527	3607.178	2727.890

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	30-09-2004
Sales Turnover [including other income]	8888.158	7300.345	3713.980
Profit/(Loss) Before Tax	679.404	436.966	283.450
Provision for Taxation	70.570	44.123	--
Profit/(Loss) After Tax	608.834	392.843	283.450
Export Value	8599.318	7083.367	3635.790
Import Value	4343.577	3471.443	1790.370
Total Expenditure	82.08.754	6863.379	--

QUARTERLY RESULTS

PARTICULARS	30.06.2006	30-09-2006
Type	1st Qtr	2nd Qtr
Sales Turnover	2215.900	2809.900
Other Income	22.000	15.500
Total Income	2237.900	2825.400
Total Expenditure	1990.900	2493.800
Operating Profit	247.000	331.600
Interest	45.500	54.400
Gross Profit	201.500	277.200
Depreciation	51.900	59.600
Tax	06.000	04.400
Reported PAT	135.200	207.900

200606 Quarter 1 –

Expenditure Includes (Increase) / Decrease in Stock in Trade Rs (148.307) million Consumption of Raw Materials Rs 1327.169 million Staff Cost Rs 122.467 million Job Work Charges Rs 499.950 million Other Expenditure Rs 189.638 million Tax Includes Provision for Income Tax Rs 5.397 million Deferred Tax Rs 8.435 million Fringe Benefit Tax Rs 0.640 million EPS is Basic & Diluted Status of Investor Complaints for the quarter ended 30.06.2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 34 Complaints disposed off during the quarter 34 Complaints unresolved at the end of the quarter Nil 1. The above results were reviewed by the Audit Committee and approved by the Board of Directors on 2507.2006. 2. As stated in the offer document, the Company has partly deployed the IPO proceeds for setting up / modernisation / expansion of factories during the quarter. 3. The result for the quarter April 2006 to June 2006 have been subjected to Limited Review by the auditors of the Company pursuant to Listing Agreement with the Stock Exchanges. 4. The Company operates in a single segment of manufacture and sale of garments. As such, reporting is done on a single segment basis. 5. Previous Years' figures have been regrouped / rearranged wherever necessary to confirm to the current period's presentation.

200609 Quarter 2 –

1. The abvoe results were reviewed by the Audit Committee and approved by the Board of Directors on 28.10.2006. 2. As stated in the offer document, the Company has deployed a major protion of the IPO proceeds for setting up/modernization/expansion of factories during the quarter. 3. The results for the quarter & half year ended 30th September have been subjected to 'Limited Review' by the Auditors of the Company pursuant to Listing Agreement with the Stock Exchanges. 4. 21 complaints/correspondences were received during the quarter and all complaints have been disposed off/attended. There were no complaints pending at the start and end of the quarter. 5. The Company operates in a single segment of manufacture and sale of garments. As such, reporting is done on a single segment basis. 6. SEZ chennai unit of the Company has commenced its commercial production on 02.10.2006. 7. Previous Year's gigures have been regrouped/rearranged wherever necessary, to conform to the current period's presentation.

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	30-09-2004
PAT / Total Income	(%)	6.85	5.38	7.63
Net Profit Margin (PBT/Sales)	(%)	7.64	5.99	7.63
Return on Total Assets (PBT/Total Assets}	(%)	12.98	11.49	8.29
Return on Investment (ROI) (PBT/Networth)		0.20	0.26	0.20
Debt Equity Ratio (Total Liability/Networth)		0.81	1.46	1.44
Current Ratio (Current Asset/Current Liability)		6.22	5.51	3.83

STOCK PRICES

Face Value	Rs. 10.00/-
High	Rs. 617.00/-
Low	Rs. 604.00/-

LOCAL AGENCY FURTHER INFORMATION

HISTORY

The subject company was initially incorporated as “Gokaldas India Private Limited and the name has been changed as GOKALDAS EXPORT PRIVATE LIMITED, with effect from 14^th December 2004.

The subject company has converted as public limited company, with effect from 7^th January 2005.

The company has gone for public Issue of 3,125,000 equity shares of Rs.10/= each with a Price band of Rs.375-425, under book building basis.

Gokaldas Exports Limited (GEL) was incorporated in 1979. GEL is a major player in the readymade garment industry across the globe. The company which is an ISO 9001:2000 Certified Company is one of the largest manufacturer/exporter of Outerwear, Blazers and Pants (Formal and Casuals), Shorts, Shirts, Blouses, Denim Wear, Swim Wear, Active and Sports Wear. 

The subsidiaries of the company are Madhin Trading Private Limited, Magenta Trading Private Limited, Rafter Trading Private Limited, Reflextion Trading Private Limited, Deejay Trading Private Limited, Rishikesh Apparels Limited, Vignesh Apparels Private Limited, SNS Clothing Private Limited, Seven Hills Clothing Private Limited, Glamourwear Apparels Private Limited, Rajdin Apparels and All Colour Garments Private Limited 

Gokaldas Exports Private Limited and Unique Creations (Bangalore) Private Limited was merged with the company with effect from 1^st April 2004. 

During 2004-05 the company has set up three new factories each at Bommasandra Industrial Area, Bangalore : at Yeshwanthpur, Bangalore and one at Doddaballapur Bangalore. Further the company has also planning to set up a unit at Madras Export Processing Zone(MEPZ), Chennai. 

During March 2005 the company made a madien public offer of 31,25,000 equity shares with a price brand of Rs.375/- to Rs.425/- and with this issue the paid up capital of he company has risied to Rs.171.880 Millions

The new state-of-the-art laundry facility at Bangalore had been commissioned in June'06. The company also commissioned knit wear unit at Bangalore during 2005-2006 

The expansion programme at Chennai, Hyderabad, Mysore and Bangalore is also under progress during the year 

The company has also initiated the process of buying the machinery for manufacture of structured suits and the company intend to set up suit plant in Bangalore very shortly.

FIXED ASSETS

v Freehold Land

v Buildings

v Leasehold Improvements

v Plant and Machinery

v Electrical Equipments

v Office Equipments

v Furniture and Fixtures

v Computers

v Vehicles

The subject company is professionally managed and seems to be financially sound.

FINANCIAL RESULTS

The company reported turnover of Rs.8619.558 Millions for the year ended 31^st March, 2006 and profit after tax at Rs.608.834 Millions . The Company added new customers and existing buyers have increased their offtake resulting in higher turnover. 

OPERATIONS REVIEW

The year 2005 proved to be a watershed for the country's textile industry, with global trade in textiles opening up from January 1, 2005 and Indian exporters managing to score over competitors from most countries to make significant inroads in the US and the European Union markets. 

After China, which was off to a flying start to capture the chunk of the Western markets for textile products, the Indian textile sector was the next best performer on the global scene following the quota phase-out, with the country increasing its share of textile and garment deliveries to the US and the EU by a quarter in the first nine months of 2005. 

The new state-of-the-art laundry facility at Bangalore had been commissioned in June'06. This will give a big impetus to the sale of washed bottoms and special washed outerwear. Washed garments presently have a big demand from the Western Countries. 

Their knit wear unit at Bangalore was commissioned this year and is well on track with a good productivity and steady flow of orders. 

The expansion programme at Chennai, Hyderabad, Mysore and Bangalore is under progress. 

The Chennai SEZ factory is under construction, and will be commissioned in this financial year. 

The 9 acres of land at Hyderabad has been acquired in a centrally located industrial area at a cost of Rs. 25 Millions and will have a built-up area of approx. 0.1 Millions sq. ft. The Mysore plant will have a built-up area of 75,000 sq. ft. 

They have also initiated the process of buying the machinery for manufacture of structured suits and they intend to set up this suit plant in Bangalore very shortly. Suits are a value added product and there is a good demand for this segment of clothing from the western world. They hope to set up a world-class suit manufacturing plant in the present financial year and their clients have indicated a good requirement of the same. Suits will cover both areas, men's as well as ladies' suits, and they also would eventually look at manufacturing industrial clothing. 

India is getting recognized as the main apparel source after China. The market indications are quite positive and very much in favour of India being recognized as a manufacturing hub for different kinds of textiles and apparels, especially in the value-added segment. 

Gokaldas Exports has added new important clients in the past year and the growth rate seems optimistic. 

CAPITAL STRUCTURE

During the year, the company made a maiden public offering of 31,25,000 equity shares with a price band of Rs.375/- to Rs.425/- for which the subscription was open from 30th March to 6^th April 2005. The issue received very good response and price was fixed at the upper band of Rs.425/- per equity share of Rs.10/-. With the allotment of 31,25,000 equity shares to the public on 20^th April 2005, the paid up capital of the Company has gone up to Rs.171.880 Millions-. As per the SEBI (Disclosure & Investor Protection) Guidelines, 2000, all fresh issue of shares to the public shall be in the dematerialized form only. Accordingly, to facilitate the public to hold the shares in the demat form, the Company entered into a tripartite agreement with National Securities Depository Limited (NSDL) Central Depository Services India Limited (CDSL) and Karvy Computershare Private Limited 

SUBSIDIARY COMPANIES

In line with the requirements of Accounting Standard AS-21 issued by the Institute of Chartered Accountants of India, consolidated financial statements presented by the Company include the financial information of its subsidiaries, which were acquired by the Company on 1^st December 2004. The Company has received approval from the Ministry of Company Affairs, Delhi vide order dated 16th January 2006 exempting the Company from attaching the annual accounts of the subsidiary Companies as required under section 212 of the Companies Act 1956. Accordingly, this annual report does not contain the annual accounts and other information of the following subsidiary companies: 

v All Colour Garments Private Limited

v Deejay Trading Private Limited

v Glamourwear Apparels Private Limited

v Madhin Trading Private Limited

v Magenta Trading Private Limited

v Rafter Trading Private Limited

v Rajdin Apparels Private Limited

v Reflexion Trading Private Limited

v Rishikesh Apparels Private Limited

v Seven Hills Clothing Private Limited

v SNS Clothing Private Limited

v Vignesh Apparels Private Limited

Any shareholder interested in obtaining a copy of accounts and other information pertaining to any/all subsidiaries may write to the Company Secretary at the registered office of the Company and the same will be sent by post.

Management Discussion And Analysis: 

Introduction: 

Gokaldas Exports Limited (GEL) is the largest and one of the leading exporter of apparel and textile garments company in India having worldwide presence with established manufacturing, marketing and research capabilities and is a 9001:2002 certified company. GEL is vertically integrated with a presence across the apparel and textile products. GEL has more than 40 factories spreading in 37 locations in Bangalore, manufacturing more than 2.4 million garments per month. 

The principal products that GEL produces are outer wear and bottom wear. Outerwear includes both sports wear and winter wear and bottom wear include casual pants, chinos, linen trousers, denim jeans etc. The following pie graph depicts the product mix for the year 2005-06: 

Graphical representation of product mix: 

More than 97% of revenues come from export activity. GEL has big plans to enhance the production capacity to 2.5 million garments per month by the end of current fiscal. Towards this objective, they are investing more that Rs. 1000 million in the next two years, which would make us to further consolidate lead in the apparel and textile industry. 

Industry Structure and Developments: 

The textile and clothing are closely related with textiles providing major input to the clothing industry. International trade were hitherto regulated by the Agreement on Textiles and Clothing (ATC) at the multilateral level with various bilateral and regional trade agreements. The ATC called for phasing out of quota restrictions by putting pre-condition to the formation of World trade Organization (WTO). The textile and clothing sector has become subject to the World Trade Organization (WTO), after removal of quotas from 1st January 2005. China has been re-imposed with restrictions both from E.U. and the U.S.A. which helps India to further increase its presence in the global apparel industry. India's performance during 2005 was a 32% jump compared to 2004. In the first four months of India's performance, January-April 2006, the growth was approx. 35%, which is a clear indication of grabbing China's share of quotas. 

The Indian textile industry plays a vital role in the Indian economy by contributing to GDP, generating employment and earning foreign exchange. An estimated 38 million people are directly employed in the textile industry in India and contributes to 4% of GDP and 20% of total export earnings. India currently exports more than one hundred garment product categories and out of this, cotton apparel exports dominate, contributing nearly 76% by value and synthetic constitutes 12%. Indian textile exports is expected to grow from the current levels to US$50 billion by 2010, consequent to quota removal, apparel being US$25 billion. 

Opportunities After dismantling of quotas, India seems to benefit due to raw material, design skills and skilled labour advantages. 

India is the world's third largest producer of cotton, second largest producer of cotton yarn, third largest exporter of cotton fabric and fourth largest exporter of synthetic fabric. With the establishment of training institutions like National Institute of Fashion Technology (NIFT), many high quality designers, who are able to create modern designs and interact with the buyers, are emerging. This is a distinctive advantage that Indian companies have, and not yet exploited. 

India already enjoys a significant competitive advantage in terms of labour cost per hour over developed countries like USA, EU, Honk Kong, Taiwan Singapore etc. India is rich in traditional workers adept at value adding tasks such as embroidery, minor work, beading and at marketing complex garments. Apart from these, USA and EU imposed quotas on China recently, which would benefit India in consolidating its market share and good political relations with these two countries would further help. 

Inspite of above advantages that India has, there would be pricing pressures in view of dismantling of quotas as new small and medium manufacturers would crop in not only within India but also from other countries where similar quotas were imposed earlier. Also India has geographical disadvantage which take little longer time to reach its products to the key markets. It seems the price has been, more or less, stabilized and the buyers are looking for quality manufactures, even it cost little more. 

Operating Results/Financial Highlights: 

The financial statements have been prepared in compliance with the requirements of the Companies Act, 1956 and generally accepted accounting principles (GAAP) in India. The management accepts the responsibility for the integrity and objectivity of these financial statements and the basis for the various estimates and judgments used in preparing the financial statements. 

During the year, the Company has achieved a net turnover of Rs.8619.558 Millions, out of which 97.8% is in the form of foreign exchange. The Company posted a strong top line performance due to good order book. Profit before tax was at Rs.679.404 Millions and net profit after tax stood at Rs.608.834 Millions. 

The higher net profit margin is due to their most of sales are to the foreign buyers, which enjoys higher margins. During 2005-06, USA & Canada dominated with a share of 64.57% of total turnover and Europe stood in the second with 33.67%. 

Gokaldas Exports is a major player in the readymade garment industry across the globe. They have a heritage of leadership to honor and preserve.

A quick overview about us:

v Incorporated in 1979, based in Bangalore, India.

v One of India's largest manufacturer /exporters and recipients of highest awards since 1980.

v 48 fully equipped, modern, manufacturing factories, all based in Bangalore.

v Specialised in manufacture of Outerwear, Blazers and Pants (Formal and Casuals), Shorts, Shirts, Blouses, Denim Wear, Swim Wear, Active and Sports Wear.

v An ISO 9001:2000 Certified Company

v Capacity to produce and export 2 million garments a month.

v 39,000 employees.

v A full fledged in-house design team creating and developing exciting collections each season.

v In House Facilities

v A state-of-the-art Laundry fully equipped with automatic machinery and a processing capacity of over 100,000 garments a day.

v Polyfill manufacturing plant with a production capacity of over 30,000 metres of polyfill per day ranging between 40-360gsm

v Highly sophisticated quilting unit equipped with computerized quilting machines processing over 30.000 metres a day.

v Printing unit installed with spider printing machines and printing tables having a capacity to print upto 375,000 pieces per month.

v Embroidery unit installed with 42 multi-head embroidery machines producing appliquesm badges, simple and complex embroideries fulfilling a requirement a more than 50,000 pieces per day.

v Label manufacturing unit - capacity of over 1, 00,000 labels a day.

v Elastic manufacturing unit - capacity of over 50,000 metres a day.

v Woven and Bungee Cord making unit capacity of 40,000 metres per day.

v Carton manufacturing unit.

The recognition gained by Gokaldas Exports is epitomized by each and every single award bestowed on it - the highest in Asia.

The company has the distinction of winning the top export awards, since 1980.

Year	Award	Awarded By Govt. And Other Indian Institutions
1980-81	Outstanding Export Award for Cotton Handloom Readymade garments	The Handloom Export Promotion Council Madras
1981	Award for Highest Global Exports.	Clothing Manufacturers Association Of India , Mumbai
1981-82	Top Exporter Award	Apparel Export Promotion Council Ministry Of Textiles, Government Of India, New Delhi
	Gold Trophy - for Highest Exports.	Garments Exporters Association, New Delhi
1982	Award for Highest Global Exports.	Apparel Export Promotion Council Ministry Of Textiles, Government Of India, New Delhi
1983	Award for Second Highest Exports	Clothing Manufacturers Association Of India - For Global Exports., Mumbai
1984	Award for General Currency Area	Apparel Export Promotion Council Ministry Of Textiles, Government Of India, New Delhi
1985	Award for Global Exports and General Currency Area	Apparel Export Promotion Council Ministry Of Textiles, Government Of India, New Delhi
1986	Award for Second Highest Exports	Clothing Manufacturers Association Of India - For Global Exports. Mumbai
	Export Performance Award - Global Exports	Apparel Export Promotion Council Ministry Of Textiles, Government Of India, New Delhi
1988	Silver Trophy - for Global Exports	The Clothing Manufacturers Association Of India, Mumbai
	Gold Trophy for outstanding export performance	Apparel Export Promotion Council, Ministry Of Textiles - For Global Exports. Ministry Of Textiles, Government Of India, New Delhi
1990-91	Silver Trophy - for Global Exports	Apparel Export Promotion Council, Ministry Of Textiles, Government Of India, New Delhi
	Silver Trophy - for Global Exports	Clothing Manufacturers Association Of India , Mumbai
1991	Award for Highest Global Exports	Apparel Export Promotion Council, Ministry Of Textiles, Government Of India, New Delhi
1992-93	Award for Top Performer	Government Of Karnataka - Readymade Garments Exports
1992	Gold Trophy for Highest Global Exports & Silver Trophy for Second Highest Exports of Woven Garments	Apparel Export Promotion Council Ministry Of Textiles, Government Of India, New Delhi
1993-94	Top Award for Apparel Exports.	Government Of Karnataka
	Award for Highest Global Exports	Clothing Manufacturers Association Of India, Mumbai
	Highest Export Award - Woven Garments and for Global Exports	Apparel Export Promotion Council Ministry Of Textiles, Government Of India, New Delhi
1994-95	Award for Highest Exports - Global Exports	Clothing Manufacturers Association Of India, Mumbai
	Award for Highest Exports - to quota countries and non-quota items to quota countries	Clothing Manufacturers Association Of India, Mumbai
	Best Manufacturer Export Award - Gold	Government Of Karnataka
1994	Highest Export Award - Woven Garments	Apparel Export Promotion Council Ministry Of Textiles, Government Of India, New Delhi
1995-96	Gold Trophy for Highest Global Exports	Clothing Manufacturers Association Of India, Mumbai
	Gold Trophy for Exports to Non-quota countries and Non-quota items to Quota countries	Clothing Manufacturers Association Of India, Mumbai
	Best Manufacturer Export Award - Gold	Government Of Karnataka
1996-97	Award for Highest Exports to Non-Quota Countries & Award for Second Largest Exporter in Global Exports	Clothing Manufacturers Association Of India, Mumbai
	Award for Highest Exports in Global Exports and Award for Highest Exports to Non-quota Countries	Clothing Manufacturers Association Of India, Mumbai
	Silver Trophy for Second Highest Exports in Global Exports & Gold Trophy for Highest Exports to Non-Quota Countries	Clothing Manufacturers Association Of India, Mumbai
1996	Award for Second Highest Exports in Global Exports & Award for Highest Exports in Woven Garments Exports	Apparel Export Promotion Council Ministry Of Textiles, Government Of India, New Delhi
	Top Exports Award - Global Exports & Gold Trophy for Exports to Non-Quota Markets	Apparel Export Promotion Council Ministry Of Textiles, Government Of India, New Delhi
1997	Highest Exports Award	Clothing Manufacturers Association Of India, Mumbai
1998-99	Award for Highest Exports - for Group Turnover	Confederation Of Indian Apparel Exporters, Mumbai
	Highest Exporter Award for Woven Garments	Confederation Of Indian Apparel Exporters, Mumbai
	Highest Exporter Award	Clothing Manufacturers Association Of India, Mumbai
1998	Silver Trophy for Largest Exports in Woven Garments	Apparel Export Promotion Council Ministry Of Textiles, Government Of India, New Delhi
1999-2000	Gold Trophy for highest exports for Global Exports	Clothing Manufacturers Association Of India, Mumbai
	Award for Highest Export Performance Readymade Garments Government of India. (FIEO)	Federation Of Indian Exporters Associations,
	Award for Highest Exports to Non-Quota Countries	Clothing Manufacturers Association Of India, Mumbai
1999	Award for Second Highest in Non-Quota	Apparel Export Promotion Council
	Exports & Award for Highest Exports to Non-Quota Countries	Ministry Of Textiles, Government Of India, New Delhi
2000	Award for Second Largest Exports in Woven Garments	Apparel Export Promotion Council Ministry Of Textiles, Government Of India, New Delhi
	Silver Trophy for Highest Exports in Global Exports	Apparel Export Promotion Council Ministry Of Textiles, Government Of India, New Delhi
2000-01	Award for Top Exporter	Cochin Export Promotion Council Govt. Of India, Cochin
	Certificate of merit for Outstanding Export Performance	The Clothing Manufacturers Association Of India, Mumbai
	Award for highest Exporter in Non-Quota Markets	Confederation Of Indian Apparel Exporters, Mumbai
2001-02	Award for Highest Exporter in Non-Quota Market	Confederation Of Indian Apparel Exporters, Mumbai
	Silver Trophy for Second Largest Global Exports	Clothing Manufacturers Association Of India, Mumbai
	Highest Exports Award for Non-Quota Countries	Clothing Manufacturers Association Of India, Mumbai
	Award for Top Exporter	Cochin Export Promotion Council Govt. Of India, Cochin
	Export Award - 2002	Federation Of Karnataka Chamber Of Commerce And Industries, Bagnalore
2002	Highest Award for Non-Quota Exports & Silver Trophy for Global Exports	Clothing Manufacturers Association Of India, Mumbai
2002-03	Highest Award for Exports - Non-Quota Exports	Confederation Of Indian Apparel Exporters, Mumbai
	Highest Exports Award for Non-Quota Market	Confederation Of Indian Apparel Exporters, Mumbai
	Best Performance Award	Council Of International Awards
1996-2000	Best Export Award - Gold (4 years continuous award)	Government Of Karnataka
2004	Highest Exports Award for Non-Quota Market	Confederation Of Indian Apparel Exporters, Mumbai (Fifth International Fashion Awards)
2004	Exporter of the year - Golden Scale Trophy	Clothing Manufacturers Association Of India

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. 44.64
UK Pound	1	Rs. 86.51
Euro	1	Rs. 58.62

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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		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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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

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