MIRA INFORM REPORT

Report Date :

26.05.2008

IDENTIFICATION DETAILS

Name :	MODELAMA EXPORTS LIMITED
Registered Office :	B – 57, Okhla Industrial Area, Phase – I, New Delhi – 110 020
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	22.08.1995
Com. Reg. No.:	55-71844
CIN No.: [Company Identification No.]	L74899DL1995PLC071844
TAN No.: [Tax Deduction & Collection Account No.]	DELM06168B
Legal Form :	Public Limited Liability Company. The company shares are listed on the Stock Exchange.
Line of Business :	Manufacturers and Exporters of Readymade Garments including Woollen, Knitwear and Garments of Leather Silk, Jute and Hemp.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 1730292
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Mr. Dushyant (Purchase Officer) and Mr. E K Raju, P. A to Chairman parted partial details. Subject is a well – established and reputed company having fine track. Available information indicates high financial responsibility of the company. Trade relations are fair. Fundamentals are strong. The concern is doing well. It can be considered good for any normal business dealings.

INFORMATION PARTED BY

Name :	Mr. Dushyant
Designation :	Purchase Department
Contact No.:	91-9818899271 / 270
Date :	26.05.2008

LOCATIONS

Registered Office / Head Office:	B-57, Okhla Industrial Area, Phase I, New Delhi – 110 020, India
Tel. No.:	91-11-26810103 / 2397838 / 26815891/26815892/26817138 / 26815706
Fax No.:	91-11-26817969 / 2397843 / /26810957
E-Mail :	info@modelamaexports.com modelama@del2.vsnl.net.in saraf@modelamaexports.com
Website :	http://modelamaexports.com http://www.idm2001.net/modelama http://www.modelama.com
Location :	Owned
Corporate Office :	184 Uyog Vihar, Phase – I, Gurgaon , Haryana, India
Tel. No.:	95-124-2397838 -42
Fax No.:	95-124-2397843
Factory:	[Basement Floor], 184, Udyog Vihar, Phase I, Gurgaon – 122 001, Haryana, India
Tel. No.:	91-124-2397838-42
Fax No.:	91-124-2397838-42
E-Mail :	info@modelamaexport.com
Website :	http://www.modelama.com
Area:	400000 sq. ft.
Productions Units:	· B-26, Okhla Industrial Area, Phase I, New Delhi – 110020 · B-80, Okhla Industrial Area, Phase I, New Delhi – 110020 · B-33, Okhla Industrial Area, Phase I, New Delhi – 110020 · Plot No. 200, Phase 1, Gurgaon, Haryana, India · Plot No. 201, Phase 1, Gurgaon, Haryana, India · Plot No. 204, Phase 1, Gurgaon, Haryana, India · IMT Manesar, Plot No – 5, Sector – 4, Gurgaon, Haryana, India · Plot No. 7 and 8, Sector 5, Manesar, Gurgaon, Haryana, India

DIRECTORS

Name :	Mr. Lalit Gulati
Designation :	Director
Address :	1, Avenue Gulmohar, West End Greens, Rajokari, New Delhi – 110 038, India
Date of Birth/Age :	08.02.1954
Qualification :	Graduate
Date of Appointment :	22.08.1995
Name :	Mr. Sanjay Gulati
Designation :	Director
Address :	E -16 Grater Kailash Ii, New Delhi – 110 048, India
Date of Birth/Age :	16.12.1968
Date of Appointment :	14.12.2000
Name :	Mrs. Prabha Gulati
Designation :	Director
Address :	1, Avenue Gulmohar, West End Greens, Rajokari, New Delhi – 110 038, India
Date of Birth/Age :	04.12.1956
Date of Appointment :	22.08.1995
Name :	Mr. Gagan Gulati
Designation :	Director
Address :	1, Avenue Gulmohar, West End Greens, Rajokari, New Delhi – 110 038, India
Date of Birth/Age :	03.11.1981
Date of Appointment :	08.04.2004
Name:	Mr. Y. J. Basrar
Designation:	Director
Telephone No:	91-11-26888508
Mobile No.:	91-9868045251

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders (as on 31.03.2007):-		No. of Shares
Mr. Lalit Gulati		1855424
Mrs. Prabha Gulati		137180
Mr. Gagan Gulati		38
Mr. Yoginder Gulati		38
Mr. Sanjay Gulati		38
Others		76
	Total	1992794

Equity Shares Breakup (Percentage of Total Equity): (as on 31.03.2007):-

Sr No.	Category	Percentage
1	Bodies Corporate	0.03
2	Directors or relative of directors	99.97
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Readymade Garments including Woollen, Knitwear and Garments of Leather Silk, Jute and Hemp.

Products :

· Outwear

· Night Wear

· Ladies Blouses

· Dresses

· Knitwear

· Skirts

· Kidswear

· Ready to Wear

· Ladies Blouses

·

Product Description	Item Code
Textile Garments	0120
Power And Energy	0114

Exports :

Countries :

US, Europe, Far East

Imports :

Products :

Raw Material

Countries :

China, Far East

Terms :

Selling :

L/C, Credit (30 days)

Purchasing :

Credit (30 Days)

GENERAL INFORMATION

Customers :	Wholesalers, Departmental Stores. U.S.A. v Gap v Banana Republic v Target Stores v Mervyns v Saks v Federated Stores (Macy’s) v Sears Roebuck and Company v Charming Shoppe Inc. v Lane Bryant v Belk Stores v Kohls Stores v Dayton Hudson Corporation v Chambers v Lands End v Marshalls v Westelm v William Sonama v Pottery Barn v Blomming Dales v Nordstorm v Marks n Spencer v JC Penney v Hollister v A and F v AEO Europe v Galleries Lafeyette v Monoprix v La Halle v ETAM v Eurofiel (Womens Secret) v Villersey and Boch Canada v Eatons v Hudson Bay v Marmaxx v Sears Roebuck and Company v Zellers Australia v Country Road U.K. v Laura Ashley v Next v GUS v Freemans v Grattan
No. of Employees :	3500
Bankers :	· The Hong Kong and Shanghai Banking Corporation Bank Limited Address: 25 Barakhamba Road, New Delhi – 110 001, India · Bank of India Address: Karol Bagh, New Delhi – 110 005, India · Citi Bank
Banking Relations :	Good
Auditors :
Name :	S K Bhakti and Company Chartered Accountants
Address :	302 Surya Tower, 31 Community Centre Paschim Vihar, New Delhi – 110 063, India
Memberships:	Apparel Export Promotion Council
Associates/Subsidiaries :	· Sleek Fashions Private Limited · Gagan Exports · Kailash Exports · Lalit Gulati & Sons (HUF) · Sailers India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs. 10/- each	Rs. 25.000 millions
2500000	Preference shares	Rs. 10/- each	Rs. 25.000 millions
		Total	Rs.50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1992794	Equity Shares	Rs. 10/- each	Rs.19.928millions

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		19.927	19.927	19.927
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		412.646	349.010	278.575
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		432.573	368.937	298.502
LOAN FUNDS
1] Secured Loans		609.952	646.762	436.839
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		609.952	646.762	436.839
DEFERRED TAX LIABILITIES		81.472	56.818	21.849
BANK OVERDRAFT		0.000	93.989	16.930
TOTAL		1123.997	1166.506	774.120
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		572.645	594.945	365.496
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	438.808	465.643	281.010
	Sundry Debtors	218.837	293.314	218.740
	Cash & Bank Balances	9.977	5.660	4.468
	Other Current Assets	119.611	92.155	95.799
	Loans & Advances	0.000	0.000	0.000
Total Current Assets		787.233	856.772	600.017
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	224.982	275.625	176.253
	Provisions	10.899	9.586	15.140
Total Current Liabilities		235.881	285.211	191.393
Net Current Assets		551.352	571.561	408.624
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1123.997	1166.506	774.120

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		1353.197	1744.459	1510.183
Other Income		11.163	6.562	6.073
Total Income		1364.360	1751.021	1516.256
Profit/(Loss) Before Tax		99.221	116.242	134.920
Provision for Taxation		33.354	44.553	36.846
Profit/(Loss) After Tax		65.867	71.689	98.074
Export Value		1208.740	1638.704	1389.621
Expenditures :
	Raw Material Consumed	562.886	909.942	691.290
	Purchases made for re-sale	0.000	14.323	9.827
	Consumption of stores and spares parts	6.547	15.236	10.168
	Increase/(Decrease) in Finished Goods	5.187	[198.490]	[86.576]
	Salaries, Wages, Bonus, etc.	188.489	202.364	181.648
	Managerial Remuneration	4.722	2.927	2.600
	Payment to Auditors	0.561	0.546	0.600
	Interest	44.515	39.016	25.448
	Insurance Expenses	3.682	3.631	2.908
	Power & Fuel	41.322	53.470	47.139
	Depreciation & Amortization	29.359	21.068	16.209
	Other Expenditure	377.869	570.746	480.075
Total Expenditure		1265.139	1634.779	1382.336

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	4.82	4.09	6.47
Net Profit Margin (PBT/Sales)	(%)	7.33	6.66	8.93
Return on Total Assets (PBT/Total Assets}	(%)	7.30	8.00	13.97
Return on Investment (ROI) (PBT/Networth)		0.23	0.32	0.45
Debt Equity Ratio (Total Liability/Networth)		1.96	2.53	2.10
Current Ratio (Current Asset/Current Liability)		3.33	3.00	3.13

LOCAL AGENCY FURTHER INFORMATION

FORM 8:-

Name of the company	MODELAMA EXPORTS LIMITED
Presented By	Bank of India and Modelama Exports Limited
1) Date and description of instrument creating the change	Hypothecation cum, loan agreement (plant and machinery Stocks, and book debts dated 24.05.2004 credit facility agreement (applicable total fund based and non fund based facilities ) dated 24.05.2004. (Regd. On 18.06.2004) Modified upto Rs. 7.563 millions on 21.12.2004 Regd. On 17.01.2005
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 2392.500 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 movable machineries and plant (both present and future ) whether installed or not and whether lying loose or at site in transit or acquired subsequently , short particulars of which are disclosed in Part a of schedule II to hypothecation cum loan agreement dated 24.05.2004 attached agreement or which may at any time during the continuance of this security being at any time during the continuance of this security being installed or lying loose or in cases or being in or upon or about the borrower premises at 1) B -57 and B – 80 Okhla Industrial Area Phase – I, New Delhi – 110 020 2) 184, 200, 201, 2074 And 105 / 106, Udyog Vihar Phase – I, Gurgaon (Haryana), 3) Plot No. 5, Sector -4, IMT Manesar Gurgaon , Haryana and plot No. 7 and 18 Sector – 5, IMT Manesar , Gurgaon , Haryana or wherever else the same may be or be held by any party anywhere to the order or disposition of the borrower or in the course of transit to the borrower. Hypothecation of all tangible movable properties assets and stocks (both present and future) including all stocks of raw materials such as cloth labels, thread , hanger, Fabric, button and packing materials, etc and finished goods systems and parcels, etc. and semi finished goods spares parts components (including spares parts and stores relating to plant and machinery both present and future ) and stock in process of the borrower. As described in part B of Schedule II to hypothecation cum loan agreement dated 24.05.2004 attached , situated at 1) B -57 and B – 80 Okhla Industrial Area, Phase – I, New Delhi – 110 020 2) 184, 200, 201, 204 and 105, 106, Udyog Vihar Phase – I, Gurgaon , Haryana 3) Plot no. 5, Sector 5, Sector -4, IMT Manesar, Gurgaon , Haryana , plot No. 7 and 18 Sector -5, IMT Manesar , Gurgaon , Haryana or wherever else the same may be or be held by any party anywhere to the order or disposition of the borrower or in the course of transit to the borrower. Hypothecation of the borrower book debts, outstanding monies receivable both present and future as described in Part C of Schedule II to hypothecation cum loan agreement dated 24.05.2004 attached Hypothecation of bills, notes, documents of title to goods.
4) Gist of the terms and conditions and extent and operation of the charge.	First charge on above assets is to secure the fund based limits of Rs. 272.500 millions and non fund based limits of Rs. 120.000 millions aggregating to Rs. 392.500 millions as detailed in schedule I to hypothecation cum loan agreement dated 24.05.2004 attached . Interest is chargeable on PC / Bills limit at 7.50% p.a demand loan at 10.75% p.a with monthly rests or at such other rates as per bank / Fedai Rules
5) Name and Address and description of the person entitled to the charge.	Bank of India, Karol Bagh, New Delhi , India
6) Date and brief description of instrument modifying the charge	Letter ceding Pari passu charge from Citi bank A
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.	The charge created by the company in favour of Citi Bank NA , New Delhi to secure the working capital facilities funded Rs. 85.000 millions and non funded Rs. 30.000 millions against stocks, semi finished goods, finished goods, consumables, stores, spares, book debts, bills, etc shall rank pari passu with the charges created by the company in favour of Bank of India to secure the funded facilities of Rs. 550 millions and non funded facilities of Rs. 170 millions aggregating to Rs. 720 millions vide letter ceding pari passu charge from Citi Bank NA, dated 3.01.2005 attached. Other terms and conditions remain same.

Corporation identity number or foreign company registrations number of the company	L74899DL1995PLC071844
Name of the company	MODELAMA EXPORTS LIMITED
Address	B-57, Okhla Industrial Area, Phase I, New Delhi – 110 020, India
This Form is for	Creation of charge
Type of Charges	· Hypothecation · Equitable mortgage or mortgage of property by depositing the title deeds.
Particular of the charge holder	Bank of India Karol Bagh, New Delhi – 110 005, India E-Mail: boikarolbr@vsnl.net
Nature or description of the instrument creating charge	Oral assent for deposit of title deeds and creation of equitable mortgage.
Date of the instrument creating charge	25.07.2006
Amount Secure by the charge	Rs. 82.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	First charge on properties at Survey No. 632 and 629 , Biran Wadi Taluka Tasgaon District Sangli , Maharashtra Admeasuring 2 Acres each total area 4 acres is to secure the term loan of Rs. 82.000 millions sanctioned to the company.
Particulars of the Property charged	First charge on properties at Survey No. 632 and 629 , Biran Wadi Taluka Tasgaon District Sangli , Maharashtra Admeasuring 2 Acres each total area 4 acres comprising land and buildings and other structures / and fixed machinery and plant and fixtures erected or installed thereon.

OTHER DETAILS:

Subject was originally incorporated in the year 1982 at New Delhi as a Sole Proprietary Concern and entire business has been takenover by Modelama Exports Limited with effect from 1^st April, 2004.

Outer Wear

v Action Back Jacket

v Relaxed Blazer

v Zip Bomber

v Button Front Jacket

v Rag Jacket

v Trench Coat

v Reprocessed Wool Jacket

v Bouble Zipper Jacket

v Micros Fibre Jacket

v Denim With Sherpa

Home Furnishing

Subject has also ventured into home textiles three years ago, offering products for windows, lounge, table, bed and bath.

Infrastructure

Subject has the modern manufacturing plants and deploys over 3000 imported sewing machines for production of garments.

v Cutting Facilities

v Finishing Capacity

v Embroidery Facilities

The company is a Government Recognised Trading House.

WEBSITE DETAILS:-

With a vision to lead, Subject emerged in the horizons of garments manufacturing industry in the year 1979. Led by business acumen of the founder and the competence of the workforce, it established itself as a name to reckon with not only in India but also in the overseas destinations.

Subject is manufacturers and exporters of garment in India with state-of-the art, professionally run, production units covering about 400000 sq.fts of area.

The management of the company Export always believed that quality should be the top most priority. The incessant efforts to provide consumer satisfaction could only be achieved through enhancing the capabilities of manufacturing high quality products.

At the company, obligations involving human resource development, social and environmental issues are a part of the day-to-day chores.

Subject has also ventured into home textiles three years ago, offering products for windows, lounge, table, bed and bath. Servicing an elite list of clients such as Target, pottery Barn, Macy's Bloomingdales, Saks, Marks and Spencer, Dayton's Chambers, Country Road, William Sonoma, T K Max, Fallaballa, Modafill to name a few.

Having created a strong footing in the table linens, window decoration and top of the bed products business using the existing production facilities, Subject has his plans set to create a formidable existence in as many products as possible in the Home Textile Industry.

Today, the Home division is an active driving force in the company future expansion plans. An independent state of the art sewing and washing facility for Home Textile Products is in the making to cater the ever growing needs of the companies' Home Textile customers and to ensure that they continue to get the best in Product, quality.

AWARDS:

For a company that has won almost every award that export industry can bestow upon it export houses.

Vendor Award

· Buying houses – Charming Shoppes.Inc

· Occasion – In recognition of outstanding performance by Subject in the category – sales growth and profitability

· Year-2000

5 Star Award

· Buying houses - Federated

· Occasion – In recognition of Subject continued support and outstanding service in the development of federated department stores private brands and labels

· Year- 1999, 2000 and 2002

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.42.84
UK Pound	1	Rs.84.78
Euro	1	Rs.67.32

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--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		72

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