MIRA INFORM REPORT

Report Date :

15.01.2008

IDENTIFICATION DETAILS

Name :	CRAFTED CLOTHING PRIVATE LIMITED
Registered Office :	527, Marsur Village, Anekal Taluka, Bangalore 562106, Karnataka
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	20.06.1996
Com. Reg. No.:	08-20671
CIN No.: [Company Identification No.]	U85110KA1996PTC020671
TAN No.: [Tax Deduction & Collection Account No.]	BLRC01198B
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer, Importer and Exporter of garments, ready made, textiles, fabrics, 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 425000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company promoted by Aditya Birla Group. Directors are reported as experienced, respectable and having satisfactory means of their own. 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 :	527, Marsur Village, Anekal Taluka, Bangalore 562106, Karnataka, India
Tel. No.:	91-80-7827713
Fax No.:	91-80-7827489
E-Mail :	ccplsatcos@gmail.com , dbhandari@adityabirla.com
Factory 1 :	527/1, Marasur Vill, Jigini Hobli, Anekal Tk, Bangalore – 562 106, Karnataka, India

DIRECTORS

Name :	Mr. Hemchandra Gurunath Javeri
Designation :	Director
Address :	1A, Fairfield, Benson Cross Road, Benson Town, Bangalore 560046, Karnataka, India
Date of Birth/Age :	12.04.1962
Date of Appointment :	28.06.2005
Name :	Pinky Atul Mehta
Designation :	Director
Address :	102, Anand Kanchan, Phirozsha Mehta Road, Vile Parle [East], Mumbai 400 057, Maharashtra, India
Date of Birth/Age :	21.04.1967
Date of Appointment :	28.06.2005
Name :	Mr. Devendra Bhandari
Designation :	Director
Address :	A-1601, Aster Tower, Film City Road, Malad [East], Mumbai 400 097, Maharashtra, India
Date of Birth/Age :	31.07.1953
Date of Appointment :	28.06.2005
Name :	Mr. Stephen Verghese
Designation :	Director
Address :	103, Casmaria Apartment, 19/5, Lewis Road, Cooke Town, Bangalore 560005, Karnataka, India
Date of Birth/Age :	19.08.1953
Date of Appointment :	28.06.2005

KEY EXECUTIVES

Name :	Mr. K. Vijayshyam Acharya
Designation :	Secretary
Address :	Sri Krishna 13/3, Pampamahakavi Road, Bangalore 560004, Karnataka, India
Date of Birth/Age :	26.12.1974
Date of Appointment :	21.07.2003

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Madura Garments Exports Limited	110000
Alpha Garments Private Limited	130000
Seshasayee Properties Private Limited	240000
English Apparels Private Limited	20000
Total	500000
Preference Shares
Laxminarayan Investment Limited	180000
Aditya Birla Nuvo Limited	570000
Total	750000
Equity Share Break-up	Percentage of Holding
Bodies Corporate	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Importer and Exporter of garments, ready made textiles, fabrics, etc.

Products :

Item Code No. (ITC Code)	620000
Product Description	Garments

GENERAL INFORMATION

Bankers :

Ø HDFC Bank

Ø The Hong Kong and Shanghai banking Corporation Limited

7, Mahatma Gandhi Road, Bangalore 560001, Karnataka, India

Ø Exim Bank

World Trade Centre, Cuff Parade, Mumbai – 400 005, Maharashtra, India

Facilities :

Particulars	As on 31.03.2004 [Rupees in Millions]
SECURED LOAN FROM BANK
Bank Overdraft [secured by hypothecation of stocks and book debts and other receivables of the company and a guarantee from a corporate body]	8.428
Term Loan [secured by hypothecation of Plant and machinery and Guarantee from a corporate body]	96.000

Banking Relations :	Satisfactory
Auditors :
Name :	Khimji Kunverji and Company Chartered Accountants
Address :	Gurukrupa Mansion, 3^rd floor, Post Box No. 2076 # 44, Nagappa Street, Bangalore 560020, Karnataka, India
Holding Company :	Aditya Birla Nuvo Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs. 10/- each	Rs. 7.500 Millions
825000	Preference Shares	Rs. 100/- each	Rs. 82.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs. 10/- each	Rs. 5.000 Millions
750000	Preference Shares	Rs. 100/- each	Rs. 75.000 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		80.000	80.000	80.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		26.297	0.719	[9.102]
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		106.297	80.719	70.898
LOAN FUNDS
1] Secured Loans		242.099	159.425	185.828
2] Unsecured Loans		30.000	60.078	0.000
TOTAL BORROWING		272.099	219.503	185.828
DEFERRED TAX LIABILITIES		27.068	5.769	0.000
TOTAL		405.464	305.991	256.726
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		333.187	273.048	225.211
Capital work-in-progress		30.148	5.935	2.905
INVESTMENT		0.026	1.251	0.001
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	7.697	4.965	2.415
	Sundry Debtors	36.198	29.640	18.790
	Cash & Bank Balances	5.475	3.674	3.128
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	97.639	26.874	18.195
Total Current Assets		147.009	65.153	42.528
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	68.479	26.404	8.480
	Provisions	36.427	12.992	5.439
Total Current Liabilities		104.906	39.396	13.919
Net Current Assets		42.103	25.757	28.609
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		405.464	305.991	256.726

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		683.293	242.623	100.640
Total Income		683.293	242.623	100.640
Profit/(Loss) Before Tax		45.022	17.336	1.521
Provision for Taxation		26.266	7.515	[0.073]
Profit/(Loss) After Tax		18.756	9.821	1.594
Total Import		15.970	13.917	--
Expenditures :
	Financial Charges	9.359	9.985	8.620
	Depreciation & Amortization	20.511	15.140	0.000
	Other Expenditure	608.401	200.162	90.499
Total Expenditure		638.271	225.287	99.119

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	2.74	4.04	1.58
Net Profit Margin (PBT/Sales)	(%)	6.58	7.14	1.51
Return on Total Assets (PBT/Total Assets}	(%)	9.37	5.12	0.56
Return on Investment (ROI) (PBT/Networth)		0.42	0.21	0.02
Debt Equity Ratio (Total Liability/Networth)		3.54	3.20	2.81
Current Ratio (Current Asset/Current Liability)		1.40	1.65	3.04

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets:

Ø Lease Hold Building

Ø Machinery

Ø Furniture and Fixtures

FORM 8

Bankers Charges Report as per Registry

This Form is for	Modification of charge
Charge identification number of the charge to be modified	80037678
Corporate identity number of the company	U85110KA1996PTC020671
Name of the company	CRAFTED CLOTHING PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	527, Marsur Village, Anekal Taluka, Bangalore 562106, Karnataka, India
Type of charge	Ø Book Debts Ø Movable Property Ø Floating Charge
Particular of charge holder	HDFC Bank Limited HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai 400 013, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Supplemental letter of hypothecation of stock and book debts
Date of instrument Creating the charge	28.09.2007
Amount secured by the charge	Rs. 61.400 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	[a] Rate of Interest As mutually agreed [b] Terms of repayment CC on Demand WCDL – Principal amount to be repaid as bullet payment on the maturity date [c] Margin 25% on stock and book debts [d] Extent and operation of the charge First Exclusive charge by way of hypothecation of company’s entire current assets including stock of raw materials, semi finished goods and finished goods, consumable, stores and spares and such other movables, book debts bills weather documentary or clean outstanding monies receivables both present and future on a form and manner satisfactory to the bank.
Short particulars of the property charged	First exclusive charge by way of hypothecation of company’s entire current assets including stock of raw material, semi finished goods and finished goods, consumable stores and spares and such other movables, book debts bills weather documentary or clean outstanding monies receivables both present and future on a form and manner satisfactory to the bank.
Date of latest modification prior to the present modification	NA
Particulars of the present modification	Present charge on stock and book debts of the company, both present and future, extended to cover additional limit of Rs. 35.000 Millions

Name of the company	CRAFTED CLOTHING PRIVATE LIMITED
Presented By	The Hong Kong and Shanghai banking Corporation Limited 7, Mahatma Gandhi Road, Bangalore 560001, Karnataka, India
1) Date and description of instrument creating the change	Deed of hypothecation dated 23.03.2005
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 25.000 Millions
4) Gist of the terms and conditions and extent and operation of the charge.	In consideration of loan and/or any other banking facilities sanctioned/to be sanctioned by the Bank to the Company, the Company has hypothecated and charged to the bank by way of second charge as a continuing security, the assets mentioned in Item No. 3 above to secure the repayment of the advances together with interest cost and all other charges. Interest at the rate of HSBC Prime Lending Rate % per annum shall be payable by the Company subject however that the Bank shall have the right to change the rate of interest after giving notice to the Company. The Company shall maintain such margin of security as may be specified by the Bank from time to time. In case the Company fails to fulfill its obligations under the Agreement, the Bank shall be entitled to take possession of the hypothecated properties and sell them by public auction or private contract and utilize the proceeds in full or part settlement of its claims.
5) Name and Address and description of the person entitled to the charge.	The Hong Kong and Shanghai banking Corporation Limited 7, Mahatma Gandhi Road, Bangalore 560001, Karnataka, India
6) Date and brief description of instrument modifying the charge	NA
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.	NA

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. 39.29
UK Pound	1	Rs. 77.05
Euro	1	Rs. 58.39

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	7
--PROFITABILIRY	1~10	5
--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	YES
--LISTED	YES/NO	NO
--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 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