MIRA INFORM REPORT

Report Date :

10.08.2011

IDENTIFICATION DETAILS

Name :	COTTON BLOSSOM INDIA PRIVATE LIMITED
Registered Office :	Shed No.189, Tekic Tea Nagar, Sidco, Mudalipalayam, Tirupur – 641606,Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	14.06.2004
Com. Reg. No.:	18-011182
Capital Investment / Paid-up Capital :	Rs.150.000 Millions
CIN No.: [Company Identification No.]	U18101TZ2004PTC011182
IEC No.:	3297024879
TAN No.: [Tax Deduction & Collection Account No.]	CMBC03683B
PAN No.: [Permanent Account No.]	AACCC5046R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacture, Importer and Exporter of Knitted Garments.

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 1500000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Shiv Kumar
Designation :	Account Manager
Contact No.:	91-9952432205

LOCATIONS

Registered Office :	Shed No. 189, Tekic Tea Nagar, Sidco, Mudalipalayam, Tirupur – 641606, Tamilnadu, India
Tel. No.:	91-421-2374459 / 2374462
Fax No.:	91-421-2374891
E-Mail :	cotonblossom@cotonblossoms.org
Website :	www.cotonblossoms.org
Area :	54000 sq.ft
Location :	Owned
Factory :	P2, 5^th Cross, SIPCOT Industrial Growth Center, Perundurai Erode – 638052, Tamilnadu, India
Tel. No.:	91-421-237446462/ 2374459/ 2374521/ 2375750
Fax No.:	91-421-2374891
E-Mail :	cotonblossom@satyam.net.in
Area :	60000 sq.ft
Location :	Owned

DIRECTORS

As on 30.09.2010

Name :	Ms. Philomena John
Designation :	Director
Address :	D. NO.2/351, Mary Land, Kavundampalayam, Perutholuve Village, Tirupur – 641665, Tamilnadu, India
Date of Birth/Age :	03.09.1950
Qualification :	PUC
Date of Appointment :	14.06.2004
Name :	Mr. Milton Ambrose John
Designation :	Managing Director
Address :	100, AB Tekkekara House, Marappampalayam Pudur, Pongupalayam, Tirupur – 641666,Tamilnadu, India
Qualification :	PUC
Name :	Mr. Joseph Anthony John
Designation :	Director
Address :	D. No. 2/337 A, Veppangadu, Mudalipalayam Post, Tirupur – 641606, Tamilnadu, India
Qualification :	PUC

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Philomena	8411840
Milton Ambrose John	3011200
Joseph Anthony John	3523200
Jopyce Elizabeth john	13440
Shakira Wahab	13440
Rosely Milton	13440
Smitha Joseph	13440
Total	15000000

As on 30.09.2010

Equity Share Breakup

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacture, Importer and Exporter of Knitted Garments.

Products :

• Garments
• Fabric Processing
• Yarn

Product Description	Knitted Garments
Item Code No. (ITC Code)	61060000

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Garments (Garment Division)	Nos	--	--	8097175
Fabric Processing (Dying Division)	Kgs	10675	8500	1592168
Yarn (Spinning Division)	Kgs	25000	18000	2348753

GENERAL INFORMATION

Bankers :

• Bank of Maharashtra

488, P N Road, Tirupur – 641601, Tamilnadu, India

• Oriental Bank of Commerce

Facilities :

Secured Loans	Rs. in Million As on 31.03.2010	Rs. in Million As on 31.03.2009
Term loans Bank of Maharashtra Oriental Bank of Commerce Interest accrued and on above Hypothecation loans for working capital Oriental Bank of Commerce Packing credit Bank of Maharashtra Oriental Bank of Commerce Hire purchase loans	334.460 363.157 6.586 9.780 201.237 219.902 6.733	356.709 369.008 3.800 9.884 197.702 153.743 6.474
Total	1141.857	1097.404
Unsecured Loans	Rs. in Million As on 31.03.2010	Rs. in Million As on 31.03.2009
From Directors Joseph Antony John Milton Ambrose John Philomena	8.904 2.405 9.506	0.000 0.000 0.000
Total	20.816	0.000

Banking Relations :	--
Auditors :
Name :	P.N. Raghavendra Rao and Company Chartered Accountant
Address :	No. 23/2, Viswa Paradise Apartments, 2^nd Floor, Kalidas Road, Ram Nagar, Coimbatore – 641009
Tel. No.:	91-422-2232440/ 2236997/ 2232129/ 2233288
Fax No.:	91-422-2230375
E-Mail :	www.pon.co.org
Subsidiaries :	Gangotri Mercantile Private Limited CIN No. U51909WB1996PTC078147 Jayanthi Garments and textiles Private Limited CIN No. U17111TZ2005PTC012137

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		150.000	150.000	150.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		230.529	178.197	127.406
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		380.529	328.197	277.406
LOAN FUNDS
1] Secured Loans		1141.857	1097.404	890.483
2] Unsecured Loans		20.816	0.000	0.000
TOTAL BORROWING		1162.673	1425.601	1167.889
DEFERRED TAX LIABILITIES		88.683	78.915	58.813
TOTAL		1631.885	1504.516	1226.702
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1175.846	1112.715	953.062
Capital work-in-progress		30.399	0.000	10.614
INVESTMENT		5.372	3.754	3.755
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	331.139	286.735	176.699
	Sundry Debtors	116.036	85.662	23.103
	Cash & Bank Balances	47.148	101.312	122.340
	Other Current Assets	79.777	0.542	15.669
	Loans & Advances	118.755	140.708	150.074
Total Current Assets		692.855	614.959	487.885
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	150.275	118.986	135.072
	Other Current Liabilities	65.274	63.256	59.301
	Provisions	57.038	44.670	34.365
Total Current Liabilities		272.587	226.912	228.738
Net Current Assets		420.268	388.047	259.147
MISCELLANEOUS EXPENSES		0.000	0.000	0.124
TOTAL		1631.885	1504.516	1226.702

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales	1249.457	1241.335	966.832
		Other Income	191.030	112.019	130.356
		TOTAL (A)	1440.487	1353.354	1097.188
Less	EXPENSES
		Increase/decrease in stock	57.204	(35.714)	(7.547)
		Materials consumption	478.147	495.716	386.835
		Manufacturing expense	256.070	219.368	202.852
		power and fuel	0.000	40.548	18.031
		salaries and wages	285.681	214.602	144.711
		Repairs and maintenance	0.000	32.920	18.500
		Administrative Expenses	54.997	43.628	64.172
		Selling and distribution expenses	27.941	27.989	10.849
		TOTAL (B)	1160.040	1039.057	838.403
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		280.447	314.297	258.785
Less	FINANCIAL EXPENSES (D)		111.027	117.774	75.858
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		169.420	196.523	182.927
Less/ Add	DEPRECIATION/ AMORTISATION (F)		109.377	102.758	75.400
	PROFIT BEFORE TAX (E-F) (G)		60.043	93.765	107.527
Less	TAX (I)		23.743	34.200	36.974
	PROFIT AFTER TAX (G-I) (J)		36.300	59.565	70.553
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		26.109	25.318	5.107
Less	APPROPRIATIONS
		Transfer to General Reserve	40.000	50.000	40.000
		Dividend	7.500	7.500	8.840
		Tax on Dividend	1.274	1.274	1.502
	BALANCE CARRIED TO THE B/S		13.635	26.109	25.318
	EARNINGS IN FOREIGN CURRENCY
	Export Earnings		1020.275	1226.812	964.097
	TOTAL EARNINGS		1020.275	1226.812	964.097
	IMPORTS
	Raw Materials		114.060	27.894	9.554
	Capital Goods and Spares			53.504	137.210
	TOTAL IMPORTS		114.060	81.398	146.764
	Earnings Per Share (Rs.)		2.42	3.97	8.79

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.51	4.40	6.43
Net Profit Margin (PBT/Sales)	(%)	4.80	7.55	11.12
Return on Total Assets (PBT/Total Assets}	(%)	3.21	5.41	7.44
Return on Investment (ROI) (PBT/Networth)		0.15	0.28	0.38
Debt Equity Ratio (Total Liability/Networth)		3.77	5.03	5.03
Current Ratio (Current Asset/Current Liability)		2.54	2.71	2.13

LOCAL AGENCY FURTHER INFORMATION

REVIEW OF OPERATIONS:

The fiscal 2010 was a year challenged by difficult global economy, severe power cut, rise in labor costs in line with a jump in legal Minimum Wages Act, increased raw material prices etc., However, the company on a consolidated basis could report healthy. Earnings and positive results. The inherent unique operating model supported by its cost competitive approach enabled the Company to soften the impact of external factors. The year witnessed Profit before Tax at Rs 64.647 millions (Previous Year Rs 93.765 millions) and Profit after Tax stood at Rs 38.989 millions ( Previous Year Rs 59.565 millions). The Company as in the past continues to have strong demands for its products. The Company's increased capacities have come into utilization as can be seen from the financial results and the Directors are optimistic of positive working results in the coming years.

FUTURE OUTLOOK

The Company has a well planned strategy for sustained growth with focus on premium products to accelerate its revenues and margins. The Company expects strong performance in FY 201 1 also by further improving capacity utilizations across all key divisions. The current capacities have been designed in a way to allow brown field expansions at existing sites at an investment much lower than for a Greenfield.

FINANCE:

The Company has been regular in meeting its obligation towards payment of Principal and Interest to Banks.

FORM 8

Corporate identity number of the company	U18101TZ2004PTC011182
Name of the company	COTTON BLOSSOM INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	189 TEKIC TEA NAGARSIDCO MUDALIPALAYAM, TIRUPUR – 641606, COIMBATORE DISTRICT, Tamil Nadu, INDIA audit@cottonblossom.org
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	State Bank of Travancore, Tirupur Branch, Railway Feeder Road, Tirupur, Tamil Nadu – 641601, INDIA
Nature of instrument creating charge	01 Working Capital Demand loan cum FCNR( B) Loan Agreement - FCNR (B) - 2
Date of instrument Creating the charge	28/01/2011
Amount secured by the charge	Rs. 50.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest STCL of Rs. 50.000 millions - 5% above SBT Base Rate, Terms of repayment Short term corporate loan of Rs.50.000 millions - in 35 monthly installments of Rs.1.400 millions each and Rs.1.000 millions for the final installment. Interest and charges have to be paid then and there, The repayment should commence from the next month of the availment. Margin For STCC - Nil Extent and operation of the charge Hypothecation on the entire current assets of the company present and future for all the existing and proposed working capital lenders and charge over fixed assets of the company Other Nil

FIXED ASSETS

• Land
• Building
• Plant and Machinery
• Vehicles
• Furniture
• Office Equipment
• Other Equipment

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. 45.17
UK Pound	1	Rs. 73.71
Euro	1	Rs. 64.25

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	5
--PROFITABILIRY	1~10	5
--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	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	YES
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	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.