MIRA INFORM REPORT

Report Date :

22.08.2008

IDENTIFICATION DETAILS

Name :	SPORTS STATION INDIA PRIVATE LIMITED
Registered Office :	B-1/F4, Mohan Co-Operative Industrial Area, New Delhi-110044
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	24.08.1998
Com. Reg. No.:	55-95708
CIN No.: [Company Identification No.]	U19201DL1998PTC095708
TAN No.: [Tax Deduction & Collection Account No.]	DELS12804B/DELS20824G
PAN No.: [Permanent Account No.]	AADCS6357C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers, Importers and Retailers of Sports Footwear with sole of Leather, Bags, Watches and T- Shirt Mill made other than hand printed

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track records. Company’s profitability is under severe pressure and has incurred a huge loss during the year 2006-07. Trade relations are fair. Payments are reported as slow and delayed. The company can be considered for small to mediocre business dealings on safe and secured terms only.

INFORMATION PARTED BY

Name :	Mr. Ajay
Designation :	Finance Controller
Date :	01.08.2008

LOCATIONS

Registered Office :	B-1/F4, Mohan Co-Operative Industrial Area, Main Mathura Road, New Delhi-110044, India
Tel. No.:	91-11-42299999
Fax No.:	91-11-41000253
E-Mail :	Info@sportstationindia.com deepak.kukreja@ssipl.in
Website :	www.sportstation.com

DIRECTORS

Name :	Mr. Rishab Soni
Designation :	Managing Director
Address :	11, Eastern Avenue, Maharani Bagh, New Delhi-110065, India
Date of Birth/Age :	05.11.1972
Date of Appointment :	20.09.2000
Name :	Ms. Kiran Soni
Designation :	Director
Address :	D-838, New friends Colony, New Delhi-110065, India
Date of Birth/Age :	06.03.1950
Date of Appointment :	24.08.1998
Name :	Ms. Alka Taneja
Designation :	Director
Address :	A-42, New friends Colony, New Delhi-110065, India
Date of Birth/Age :	16.03.1957
Date of Appointment :	24.08.1998
Name :	Mr. Ashok Mathur
Designation :	Director
Address :	75, Sersa Road, Kundli, Sonepat, Haryana, India
Date of Birth/Age :	19.07.1943
Date of Appointment :	30.04.2001
Name :	Mr. Abhay Soi
Designation :	Director
Address :	K-25, South Extension -11, New Delhi-110049, India
Date of Birth/Age :	19.08.1973
Date of Appointment :	18.02.2006
Name :	Mr. Lalit Kishore
Designation :	Director
Date of Birth/Age :	29.01.1966
Date of Appointment :	18.02.2006
Name :	Mr. Sunil Taneja
Designation :	Director
Date of Birth/Age :	15.01.1956
Date of Appointment :	18.02.2006

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 03.09.2007

Names of Shareholders	No. of Shares
Mr. Rishab Soni	534102
Mrs. Alka Taneja	115100
Mrs. Kiran Soni	411530
Ms. Divya Mathur	80
Mr. Sunil Taneja	65000
Mrs. Nandita Soni	297918
Mr. B.K. Soni	01
Mr. Himmaj Soni	03
Sunil Taneja (HUF)	01
Mrs. Alice Koshy	01
Mr. Amit Mathur	43000
Mr. Dilip Mathur	300000
Mr. Ashok Mathur	175000
Jay Dee International Private Limited	353000
Mrs. Esha Mathur	01
Mrs. Meera Mathur	01
Mr. R.K Mathur	01
Mrs. Rohini Mathur	15000
Mrs. Aruna Chatterjee	01
Mrs. Asha Taneja	01
Mr. K.B. Mathur	01
Ms. Divrina Dhingra	01
Mr. Nupur Dhingra	01
Sports Station Retail Private Limited	01
Beekelne Fabrics Private Limited	01
Mr. Gulshan Bhel	01
Mr. Janak Bhel	01
Mrs. Jyoti Bhel	01
Mr. Hiten Bhel	01
Shegal Builders Private Limited	01
Mr. Ajudhia Prasad Sehgal	02
Mr. Meera Sehgal	09
Total:	2309762

Equity Share Break Up As on 29.09.2007

Particulars	Percentage
Bodies Corporate	14.53
Directors or relatives of Directors	85.00
Other top 50 share holders	0.47
Total:	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers, Importers and Retailers of Sports Footwear with sole of Leather, Bags, Watches and T- Shirt Mill made other than hand printed
Products :	Sports Wear with sole of Leather ITC Code:640319.01 T-Shirts Mill made other than hand Printed ITC code:620520.07

GENERAL INFORMATION

Bankers :	The Hong Kong and Shanghai Banking Corporation Limited, APJ Chambers, Ground Floor, Behind New Excelsior Cinema, 3 Wallace Street,Mumbai-400001, Maharashtra, India ICICI Bank, 9A, Connaught Place, New Delhi-110001, India YES Bank
Facilities :	Credit Limit Rs. 80.000 millions (The Hong Kong and Shanghai Banking Corporation Limited) Credit Limit Rs. 20.000 millions (ICICI Bank)

Banking Relations :	Satisfactory
Auditors :
Name :	T.R.Chadha and Company (Chartered Accountant)
Address :	B-30, Kuthiala Building, Cananught Place, New Delhi-110001, India
Associates/Subsidiaries :	SSIPL Luxury Fashion Private Limited CIN No.: U74899DL2005PTC137991

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs.25.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2309762	Equity Shares	Rs.10/- each	Rs.23.098 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		23.098	16.004	14.104
2] Share Application Money		0.000	0.000	1.400
3] Reserves & Surplus		0.000	12.220	12.618
4] (Accumulated Losses)		(92.344)	0.000	0.000
NETWORTH		(69.246)	28.224	28.122
LOAN FUNDS
1] Secured Loans		192.150	139.992	58.926
2] Unsecured Loans		165.821	184.322	35.546
TOTAL BORROWING		357.971	324.314	94.472
DEFERRED TAX LIABILITIES		0.000	5.266	4.344
TOTAL		288.725	357.804	126.938
APPLICATION OF FUNDS
Goodwill		1.313	0.000	0.000
FIXED ASSETS [Net Block]		158.869	79.623	26.946
Capital work-in-progress		0.715	7.800	0.000
INVESTMENT		0.100	0.100	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	297.825	230.838	120.859
	Sundry Debtors	11.597	11.967	7.143
	Cash & Bank Balances	8.091	2.998	2.504
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	176.622	209.146	45.311
Total Current Assets		494.135	454.949	175.817
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	366.207	184.284	73.464
	Provisions	0.200	0.384	2.361
Total Current Liabilities		366.407	184.668	75.825
Net Current Assets		127.728	270.281	99.992
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		288.725	357.804	126.938

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		720.492	754.108	574.685
Other Income		0.794	1.123	1.937
Total Income		721.286	755.231	576.622
Profit/(Loss) Before Tax		(103.291)	2.133	12.697
Provision for Taxation		1.272	2.530	7.595
Profit/(Loss) After Tax		(104.563)	(0.397)	5.102
Import Value :		28.740	22.678	NA
Expenditures :
	Financial Charges	50.561	22.141	9.524
	Depreciation & Amortization	26.659	21.934	11.747
	Other Expenditure	747.357	709.023	542.654
Total Expenditure		824.577	753.098	563.925

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	(14.50)	(0.05)	0.88
Net Profit Margin (PBT/Sales)	(%)	(14.34)	0.28	2.21
Return on Total Assets (PBT/Total Assets}	(%)	(15.82)	0.40	6.26
Return on Investment (ROI) (PBT/Networth)		1.49	0.08	0.45
Debt Equity Ratio (Total Liability/Networth)		(10.46)	18.03	6.06
Current Ratio (Current Asset/Current Liability)		1.35	2.46	2.32

LOCAL AGENCY FURTHER INFORMATION

Form No:8:

This form is for	Creation of charge
Corporate identity number of the company	U19201DL1998PTC095708
Name of the company	SPORTS STATION INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	B-1/F-4, Mohan Co-Operative Industrial Area, Main Mathura Road, New Delhi-110044, India
Type of charge	Book Debts Movable property Floating Charge
Particular of charge holder	The Hong Kong and Shanghai banking Corporation Limited APJ Chambers, Ground Floor, Behind New Excelsior cinema, 3, Wallace Street, Mumbai-400001, Maharashtra, India Email: vlaxman@vsnl.com
Nature of description of the instrument creating or modifying the charge	Agreement for overdraft/ cash / credit/loan against hypothecation of revolving stock and other Movable assets and also present and future book debts related to “Nike” brand of the company.
Date of instrument Creating the charge	16.07.2007
Amount secured by the charge	Rs. 80.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Rate of Interest @12.50%p.a shall be calculated on the daily balance payable by the borrower to the Bank. Terms of Repayment: On Demand Margin: As may be stipulated by Bank from Time to time Extent and operation of the Charge: The company hypothecates by way of first charge of present and future stocks and book debts as described in column no. 14 as security for the payment to the Bank for the balance at any time at debit of the said facilities together with all interest discount commission charges costs and expenses payable to or incurred by the bank in relation to such indebtedness or liabilities.
Short particulars of the property charged	1. all the company’s stocks in trade both present and future, including stocks of aw material, work in progress, spares and stores and finished goods whether stored in the company’s factory and 2. and all the company’s present and future book debts, outstanding monies receivables, claims due and owing

Bankers Charges Report as per Registry

Name of the company	SPORTS STATION (India) PRIVATE LIMITED
Presented By	Andhra Bank R.K. Puram, New Delhi-110022, India
1) Date and description of instrument creating the change	19.08.2004 Application to open Irrecoverable Documentary credit
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 10.000 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation of all goods, receivables under FLC/ILC
4) Gist of the terms and conditions and extent and operation of the charge.	The interest/ commission on FLC/ILC on DA basis limit of Rs. 10.000 millions shall be charged as per Head Office guidelines of the Bank Margin:25% on DA/ LC Usuance period not to exceed 120 days on DA/ LC
5) Name and Address and description of the person entitled to the charge.	Andhra Bank, Sector -6, R.K. Puram, New Delhi-110022, India

About Subject:

Subject was incorporated in 1998, subject is a name which pioneered organized retail in India.It is among the first organized retail companies that brought international names like Levis, and Dockers to the country, besides that subject has provided services to many other leading international brands too. Today with over a decade of experience in branded retailing, subject keeps redefining lifestyle with its world class products & stores. Subject niche position is attributed to its focus on unparalleled service, world class ambience and the best quality, Reason why, the most acclaimed international brands vouch for subject, at any point of time, Add to this, the trust of customers that ensures its lead all the times, Currently, the company is managing over 70 stores in the country across 5 brands, and has access to the best retail space, clearly making it the leader by any standard.
Today, subject is persisting relentlessly, with its thrust on excellence. Ensuring its patrons too, stay ahead.

Management

The management team of Professionals led by Rishab Soni, a designer at heart and a dynamic entrepreneur who at the age of 37 years is spearheading the entire group with the support of a team of directors and professionals.

Retailing

Subject was one of the first players in the organized retail segment and established a separate SBU for retail in 1998. Their retail SBU is headed by experienced professionals and supported by a team of Directors & Professionals.

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.43.58
UK Pound	1	Rs.81.43
Euro	1	Rs.64.52

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	---
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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
TOTAL		26

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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