MIRA INFORM REPORT

Report Date :

11.02.2008

IDENTIFICATION DETAILS

Name :	JOLE CLOTHING PRIVATE LIMITED
Registered Office :	46, 1^st Floor, Guruprasanna Mansion, Doddakalsandra, Kanakapura Road, Bangalore - 560062,, Karnataka
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	14.10.2003
Com. Reg. No.:	08 – 32727
CIN No.: [Company Identification No.]	U18101KA2003PTC032727
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer of Garments, textiles, ready made garments and made ups 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 18948
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track. Trade relations are fair. Business is active. Payments are reported as usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	46, 1^st Floor, Guruprasanna Mansion, Doddakalsandra, Kanakapura Road, Bangalore – 560062, Karnataka, India
Tel. No.:	91-80-26668789
Fax No.:	91-80-26668789
E-Mail :	jole@vsnl.net ghevar@joleclothing.com jole@touchtelindia.net sigma_accounts@yahoo.com
Website :	http://www.joleclothing.com
Factory :	340, 5^thMain Road, 1^st Block, Koramangala, Bangalore – 560034, Karnataka, India
Tel. No.:	91-80-41314834
Fax No.:	91-80-41326033
E-Mail :	syedsiraj@raymondindia.com

DIRECTORS

Name :	Mr. Futarmal Jain
Designation :	Whole Time Director
Address :	No. 176, 5^th Main, Jayanagar IV Block, Bangalore – 560011, Karnataka, India
Date of Birth/Age :	10.02.1951
Date of Appointment :	14/10/2003
Name :	Mr. Ghevar Chand Jain
Designation :	Whole Time Director
Address :	No. 176, 5^th Main, Jayanagar IV Block, Bangalore – 560011, Karnataka, India
Date of Birth/Age :	14.01.1968
Date of Appointment :	14/10/2003
Name :	Mr. Gautam Jain
Designation :	Whole Time Director
Address :	No. 176, 5^th Main, Jayanagar IV Block, Bangalore – 560011, Karnataka, India
Date of Birth/Age :	27.04.1973
Date of Appointment :	14/10/2003
Name :	Mr. Nirmalkumar Jain
Designation :	Whole Time Director
Address :	No. 176, 5^th Main, Jayanagar IV Block, Bangalore – 560011, Karnataka, India
Date of Birth/Age :	11.12.1977
Date of Appointment :	14/10/2003

KEY EXECUTIVES

Name :	Mr. V. Sridhar
Designation :	Company Secretary
Address :	8, Kailash Nagar, Vadavalli, Coimbatore – 641041, India
Tel No.:	91-422-2426973
Mobile :	91-9894029025
Email :	iicg@vsnl.net

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Gautham A Jain	35000
Mr. Ghever Chand Jain	35000
Mr. Nirmal F Jain	25000
Mr. Futar Mal Jain	30500
Mrs. Asha Jain	2999
Mr. Sayerbhai Jain	3000
Mrs. Sheethadevi	2999
Mrs. Jaspreet Singh	1
Mr. Roopchand Jain	1
Total	134500
Category	Percentage
Directors or relatives of directors	99.99
Other top fifty (50) shareholders (other than listed above)	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Garments, textiles, ready made garments and made ups etc.
Products :	Garments Textiles Ready made garments Made ups
Exports :
Countries :	European Middle East Countries

GENERAL INFORMATION

Bankers :	ING Vysya Bank Limited Avenue Road, Bangalore – 2, India Centurion Bank of Punjab Limited No.17, Cunningham Road, Bangalore – 560052, Karnataka, India ICICI Bank Indian Bank State Bank of India Bank of India ABN Amro Bank
Facilities :	As on 17/07/2004 Cash Credit : Rs.5.000 millions

Banking Relations :	Satisfactory
Auditors :
Name :	Ostawal and Jain Chartered accountant
Address :	34, Keshava Nivas, 3^rd Floor, 1^st Main, Gandhinagar, Bangalore – 560009, Karnataka, India
Associates/Subsidiaries :

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Share	Rs.10/- each	Rs.2.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
134500	Equity Share	Rs.10/- each	Rs.1.345 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		1.345	1.345
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		3.392	1.224
4] (Accumulated Losses)		0.000	0.000
NETWORTH		4.737	2.569
LOAN FUNDS
1] Secured Loans		10.892	5.919
2] Unsecured Loans		7.409	4.610
TOTAL BORROWING		18.301	10.529
DEFERRED TAX LIABILITIES		0.631	0.196
TOTAL		23.669	13.294
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		15.659	7.704
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	10.714	6.498
	Sundry Debtors	9.163	8.603
	Cash & Bank Balances	0.216	0.113
	Other Current Assets	0.000	0.000
	Loans & Advances	4.071	1.900
Total Current Assets		24.164	17.114
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	15.393	11.027
	Provisions	0.761	0.497
Total Current Liabilities		16.154	11.524
Net Current Assets		8.010	5.590
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		23.669	13.294

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.20005
Sales Turnover	70.405	N.A.
Other Income	2.295	N.A.
Total Income	72.700	N.A.
Profit/(Loss) Before Tax	3.467	N.A.
Provision for Taxation	1.299	N.A.
Profit/(Loss) After Tax	2.168	N.A.
Export Value	40.538	9.673
Import Value	4.102	2.360
Total Expenditure	69.233	N.A.

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005
PAT / Total Income	(%)	2.98	N.A.
Net Profit Margin (PBT/Sales)	(%)	4.92	N.A.
Return on Total Assets (PBT/Total Assets}	(%)	8.71	N.A.
Return on Investment (ROI) (PBT/Networth)		0.73	N.A.
Debt Equity Ratio (Total Liability/Networth)		7.27	8.58
Current Ratio (Current Asset/Current Liability)		1.49	1.48

LOCAL AGENCY FURTHER INFORMATION

Form 8:

Corporate identity number (CIN) Foreign company registration number	U18101KA2003PTC032727
Name of the Company	JOLE CLOTHING PRIVATE LIMITED
Address	46, 1^st Floor, Guruprasanna Mansion, Doddakalsandra, Kanakapura Road, Bangalore - 560062,, Karnataka, India
This form is for	Creation of charge
Type of Charge	Book debts Floating Charges Movable Property (not being pledge)
Particulars of the charge holder	Centurion Bank of Punjab Limited No.17, Cunningham Road, Bangalore – 560052, Karnataka, India Balasubramanian.r@centurionbop.co.in
Nature or description of the instrument(s) creating or modifying the charge	Agreement of Hypothecation of goods, vehicles, plant and machinery, stocks and book debts.
Date of the instrument creating or modifying the charge	15.10.2007
Amount secured by the charge	Rs.28.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest: Cash credit and working capital demand loan and PCL/PCFC/PSL (Sub Limit of CC) – BPLR 2.50% Presently with 12.50% p.a. with monthly/ daily rest on outstanding Terms of Repayment: Cash Credit and working capital demand loan and PCL/ PCFC/PSL(Sub Limit of CC) – 12 Months Terms loan 21 Months. Margin : All raw materials work in progress finished present and future – 25% All Book Debts Present and Future – 30% Extent and Operation of the charge: To cover Loan amount plus cost, expenses, interest and other incidentals
Short particulars of the property charged (including location of the property)	Hypothecation of all raw materials, Work in progress, Finished Goods present and future stored 46, 1^st Floor, Guruprasanna Mansion, Doddakallasandra, Kanakapura Road, Bangalore or any where else and all book debts present and future.
Particular of the present modification	N.A.

Name of the company	JOLE CLOTHING PRIVATE LIMITED
Presented By	Mr. Gevar Chand Jain
1) Date and description of instrument creating the change	17^th July, 2004 General Hypothecation Agreement
2) Amount secured by the charge/amount owing on the securities of charge	Rs.5.000 Millions Considering of (Rs.3.500 Millions ODSIT/ BD and Rs.1.500 Million Bills Discounting against FLC’s)
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 stock – in – trade (Readymade garment, Goods in process, Finished and semi finished garment, raw materials and all others goods. Hypothecation of Book debts aged not more than 90 days Documents drawn against LC bills discounting.
4) Gist of the terms and conditions and extent and operation of the charge.	Collateral Security Residential property bearing No.176, 5^th Main Road, Jayanagar, 4^th Block, Bangalore Rate of Interest: 11.25% p.a. in case of OD-SIT and bills discounting at the rates applicable as per FEDAI norms and terms of tenor/ Interest rates and others as per the Bank circulars. Penal Interest of 2% in case of delay in repayment of loan installment. Valid for one year i.e. 30.03.2005.
5) Name and Address and description of the person entitled to the charge.	ING Vysya Bank Avenue Road Branch, Bangalore
6) Date and brief description of instrument modifying the charge	23.06.2005 Supplemental General Hypothecation Agreement
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Composite SOD/ PCL/ PSL (Export limit under LC) Rs.7.500 Millions Term Loan Rs.2.250 Millions Total Overall Limit Rs.9.750 Millions Enhanced of Rs.2.500 Millions granted making the overall limit to Rs.9.750 Millions (All other existing terms and condition remain unchanged.)

As per website

• About Company:

Jole and Tana are made and distributed by subject. An Indian wears company, which was founded in the year 1999 in Bangalore

It has an accomplished positioning in Jole women’s wear and Tana men’s wear line in a market bracket ready to acknowledge the great till now but new styles are frequently added in order to maintain the constant freshness and appeal of the time.

Subject is currently going through a large expansion phase.

• Women’s wear:

‘Cinnoni’ mix and match range by Jole.

‘8’ a range of fashion wear by Jole. Caters to the experimental and stylish customer

‘88’ a casual wear range by Jole, categories as a social work wear.

‘888’ classic wear range, all time favorite the basic colours and styles.

• Menswear:

A unique style statement with an incredible comfort that’s what ‘Tana’ a premium casual ‘n’ club wears for men.

• Export:

Subject is the exporter to mainly European and Middle East Asian countries. They provide their foreign buyers with high quality achieved by repetitive quality checks and technically sound work force.

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.39.55
UK Pound	1	Rs.76.85
Euro	1	Rs.57.27

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	6
--PROFITABILIRY	1~10	4
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
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	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