MIRA INFORM REPORT

Report Date :

17.11.2008

IDENTIFICATION DETAILS

Name :	SPICA ELASTIC PRIVATE LIMITED
Registered Office :	447, Chandra Chowk, 3^rd Lane, M J Cloth Market, Sheikh Memon Street, Kalbadevi – 400002, Maharashtra
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	25.09.1979
Com. Reg. No.:	11-21712
CIN No.: [Company Identification No.]	U17236MH1979PTC021712
TAN No.: [Tax Deduction & Collection Account No.]	MUMS39893A
PAN No.: [Permanent Account No.]	AAACS6153K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Narrow Woven and Knitted Fabrics.

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 700000
Status :	Good
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. The company products are well received. Trade relations are fair. Financial position is satisfactory. Payments are slow but correct. The company is doing well. It can be considered good for normal business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr. Amit Mehta
Designation :	Purchases Manager
Date :	14.11.2008

LOCATIONS

Registered Office :	447, Chandra Chowk, 3^rd Lane, Seth Mooljee Jaitha Cloth Market, Sheikh Memon Street, Kalbadevi – 400002, Maharashtra, India
Tel. No.:	91-22-65844180
Fax No.:	91-22-22082506/ 66547854
E-Mail :	amit.mehta@spicaindia.com secretarial@spicaindia.com
Website :	http://spicaindia.com http://www.spica-software.com
Area :	700 sq. ft.
Location :	Owned
Factory 1:	22/2, 22/3, 22/5, Hadapsar Industrial Estate, Pune – 411013, Maharashtra, India
Factory 2:	Plot No.50, Hadapsar Industrial Estate, Pune – 411013, Maharashtra, India
Factory 3:	102-B, Hadapsar, Industrial Estate, Pune – 411013, Maharashtra, India
Tel No.:	91-20-26870051
Email :	software@spicaindia.com

DIRECTORS

Name :	Mr. Rajnikant Jaitna
Designation :	Chairman and Managing Director
Address :	10, Koregaon Road, Pune – 411002, Maharashtra, India
Date of Birth/Age :	05.07.1941
Date of Appointment :	15.10.1979
Email :	Rc.jaitha@spicaindia.com
Name :	Mr. Manish Jaitna
Designation :	Director
Address :	10, Koregaon Road, Pune – 411002, Maharashtra, India
Date of Birth/Age :	20.06.1967
Date of Appointment :	20.06.1988
Email :	Manish.jaitha@spicaindia.com
Name :	Mr. Sudhir Kulkarni
Designation :	Executive Director
Address :	Bharatkunj Vasahat No.1, CH Aruhas Enclave Erandwane, Pune – 411004, Maharashtra, India
Date of Birth/Age :	30.04.1962
Date of Appointment :	01.04.2007
Name :	Mr. Sanjay Jaitna
Designation :	Director
Address :	10, Koregaon Road, Pune – 411002, Maharashtra, India
Date of Birth/Age :	04.04.1964
Date of Appointment :	04.04.1985
Email :	Sanjay.jaitha@spicaindia.com
Name :	Mr. Amish R. Jaitna
Designation :	Director
Address :	10, Koregaon Road, Pune – 411002, Maharashtra, India
Date of Birth/Age :	06.11.1976
Date of Appointment :	16.11.1997
Email :	Amish.jaitha@spicaindia.com
Name :	Mr. Anuradha K. Jaitha
Designation :	Director
Address :	2-B, Brighton, 68 Nepean Sea Road, Mumbai – 400006, Maharashtra, India
Name :	Mrs. Asha R. Jaitha
Designation :	Director
Address :	10 Koregaon Road, Pune – 411001, Maharashtra, India
Name :	Mrs. Nina Sanjay Jaitha
Designation :	Director
Address :	301-B, Paradise Apartments, off North Main Koregaon Park Road, Pune – 411001, Maharashtra, India
Name :	Mr. K. C. Jaitha
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 21.06.2008)

Names of Shareholders	No. of Shares
Multifarious Trading and Agencies Limited	74828
Rajnikant Jaitna	47170
Apex Elastic Processors Private Limited	100000
Sanjay Jaitha	33580
Manish Jaitha	15600
Amish Jaitha	69920
Rajnikant Jaitna HUF	97000
Krishakant Jaitha	41650
Krishakant Jaitha HUF	13000
Asha Jaitha	22582
Nina Jaitha	8550
Manisha Jaitha	17720
Anuradha Jaitha	19650
Arjun Jaitha	6550
Rohan Jaitha	6550
Gaurav Jaitha	6550
	580900

(As on 31.03.2008)

Category	Percentage
Bodies Corporate	38.86
Directors or relatives of directors	61.14
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Narrow Woven and Knitted Fabrics.

Products :

Products Descriptions	Item Code No.
Narrow Woven Fabrics	580620.00
Narrow Knitted Fabrics	600210.00

Exports :

Products :

Woven Fabrics

Countries :

• US
• UK

Imports :

Products :

Raw Materials

Countries :

Malaysia

Terms :

Selling :

L/C and Credit (60 days)

Purchasing :

L/C and Credit (30 days)

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

500

Bankers :

• The Saraswat Co-operative Bank Limited

Somwarpeth Branch, Pune – 411011, Maharashtra, India

• Bank of India

University Road, Shivajinagar, Pune – 411005, Maharashtra, India

Facilities :

Secured Loans	31.03.2008 Rs. In Millions
Terms Loans	92.853
Cash Credit Accounts	96.646
Total	189.499
Unsecured Loans	31.03.2008 Rs. In Millions
From Shareholder	37.500
Trade Deposits	1.442
Total	38.942

Banking Relations :	Satisfactory
Auditors :
Name :	B. S. Mehta and Company Chartered Accountant
Address :	11/13, Botawala Building, 2^nd Floor, Horniman Cirle, Mumbai – 400001, Maharashtra, India
Holding Company :	Apex Elastic Processors Private Limited
Associates/Subsidiaries :	Sona Tapes Elastic Private Limited, Goa Multifarious Trading and Agencies Limited Amjay Labels Private Limited

CAPITAL STRUCTURE

Authorised Capital:

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.100/- each	Rs.50.000 Millions
200000	Preference Shares	Rs.100/- each	Rs.20.000 Millions
	Total		Rs.70.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
449900	Equity Shares	Rs.100/- each	Rs.44.990 Millions
131000	Preference Shares	Rs.100/- each	Rs.13.100 Millions
	Total		Rs.58.090 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		58.090	58.090	58.090
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		75.827	66.551	55.048
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		133.917	124.641	113.138
LOAN FUNDS
1] Secured Loans		189.499	203.186	238.529
2] Unsecured Loans		38.942	29.217	54.977
TOTAL BORROWING		228.441	232.403	293.506
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		362.358	357.044	406.644
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		235.444	233.626	243.276
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.025	0.025	0.025
DEFERREX TAX ASSETS		4.100	1.428	5.441
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	71.343	82.765	101.728
	Sundry Debtors	107.788	94.361	112.046
	Cash & Bank Balances	3.697	2.849	3.956
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	13.124	12.550	23.146
Total Current Assets		195.952	192.525	240.876
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	55.392	60.584	80.226
	Provisions	17.784	10.004	2.790
Total Current Liabilities		73.176	70.588	83.016
Net Current Assets		122.776	121.937	157.860
MISCELLANEOUS EXPENSES		0.013	0.028	0.042
TOTAL		362.358	357.044	406.644

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		739.122	711.191	690.602
Other Income		0.529	1.762	0.000
Total Income		739.651	712.953	690.602
Profit/(Loss) Before Tax		18.787	26.128	15.636
Provision for Taxation		7.897	9.618	(10.034)
Profit/(Loss) After Tax		10.890	16.510	25.670
Expenditures :
	Manufacturing Expenses	436.687	427.465
	Administrative Expenses	72.539	78.984
	Purchases made for re-sale	19.881	0.432
	Increase/(Decrease) in Finished Goods	5.681	13.231	674.966
	Employee’s Emoluments	116.739	111.117
	Interest	33.221	25.409
	Depreciation & Amortization	36.116	30.188
Total Expenditure		720.864	686.825	674.966

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	1.47	2.32	3.72
Net Profit Margin (PBT/Sales)	(%)	2.54	3.67	2.26
Return on Total Assets (PBT/Total Assets}	(%)	4.35	6.13	3.23
Return on Investment (ROI) (PBT/Networth)		0.14	0.21	0.14
Debt Equity Ratio (Total Liability/Networth)		2.25	2.43	3.33
Current Ratio (Current Asset/Current Liability)		2.68	2.73	2.90

LOCAL AGENCY FURTHER INFORMATION

Trade Reference:

• Delta - Israel
• CCC – Sri Lanka

Fixed Assets:

• Factory Land
• Factory Building
• Office Equipment
• Computers
• Plant and Machinery
• Furniture and Fixture
• Vehicles

Website Details:

Activities of the group

l Produces Elastic and Non-elastic ribbons tapes and webbings

l Provides Total Business Solution ranging from Business and Requirement Analysis, Design and Development, Networking and Manpower Support.

The Spica Group

• Largest manufacturer of narrow fabrics in India
• Installed production capacity of 18 million metres of narrow fabrics per month
• Vertically integrated production facilities
• Main production plant in Pune is a Lycra Assured Accredited Mill
• Broad range of products also includes Covered Rubber Thread and Covered Spandex Yarn

Spica Elastic Private Limited

Subject is the flagship company of the Spica Group and was founded in 1964, manufacturing industrial webbings. Since then, with continuous modernisation of plant and equipment, subject has grown to become the largest manufacturer of narrow elastics in India. The manufacturing site in Pune, India (about 100 miles from Mumbai) is fully vertically integrated, and manages all processes including preparation, weaving and knitting, dyeing, finishing, testing and QA. The 100,000 square foot plant employs 450 people and produces close to 15 million metres of narrow elastics every month. Office locations in Mumbai, New Delhi, Tirupur, Bangalore, Chennai and Kolkata, Company serve its customers promptly and efficiently.

Subject (Software Division) provides Total Business Solutions ranging from Business and Requirement Analysis, Design and Development, Networking etc. The division uses various technologies like Microsoft, Oracle, Informix, HP-Unix etc and is in adherence to CMM Level 3 standards.

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.49.46
UK Pound	1	Rs.73.17
Euro	1	Rs.62.96

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	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