MIRA INFORM REPORT

Report Date :

20.01.2011

IDENTIFICATION DETAILS

Name :	JONES APPAREL GROUP, INC (JONES JEANS WEAR GROUP)
Registered Office :	1411 Broadway New York NY; 10018
Country :	United States
Financials (as on) :	31.12.2009
Year of Established :	1970
Legal Form :	Corporation for Profit
Line of Business :	Apparel Wholesalers

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Regular
Litigation :	Clear

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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
United States	A1	A1

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

GEOPOLITICS - UNITED STATES
POLITICAL DATA	ECONOMIC DATA
Form of Government: Federal Economic Risk: Nil	Currency: USD Branch Situation: Stable

IDENTIFICATION
Ordered as:	Jones Jeanswear Group Inc
Address in the order:	Jones Denim Group Division 180 Rittenhouse Circle, Bristol, PA 19007
Legal Name:	Jones Apparel Group, inc (Jones Jeans Wear Group)
Trade Name:	Jones Jeans Wear Group
Legal Address	1411 Broadway New York NY; 10018
Operative Address	180 Rittenhouse Circle, Bristol, PA 19007
Telephone:	+1 (215) 785-4000	ID :	3194733
Fax:	+1 (215) 785-4000	Legal Form:	Corporation for Profit
Email:	info@jonesgroupinc.com	Registered in:	New York
Website:	www.jonesgroupinc.com	Date Created:	1970
Manager:	Jack Gross, CEO	Date Incorporated:	January 20th 2004
Staff:	6,525	Stock:	87,131,271
		Value:	par value $0.01
Activity:	Apparel Wholesalers

BANKS
Name of the Bank	SunTrust Bank

BUSINESS
HISTORY
	This company was created in the year 1970. It was formerly known as McnNaughton Apparel Group INC and changed its name to Jones Jeanswear Group, Inc.
PRINCIPAL ACTIVITY
	This company engages in designer, marketer and apparel wholesaler of branded apparel, footwear and accessories.
Products/Services description:
	Skirts, blouses, pants, jackets, sweaters, jeans wear, suits, dresses, casual tops, outerwear, shorts
Sales are:
	Wholesale, Retail
Brands:
	Robbi + Nikki Anne Klein New York Joan & David Jones New York Collection Marc Moto
Clients:
	General Clientele Industry Professional. General Stores
Operations area:
	National, International, Local
The company imports from Korea, South America, Central America
The company export to Worldwide

PAYMENTS
	made on a 50 days basis - monitored over the last 12 months
LOCATION
Headquarters
	This company is headquartered at 180 Rittenhouse Circle, Bristol, PA 19007
The property is:
	Owned
Comments on location:
	This company is incorporated in New York. However is headquartered in Pennsylvania.
Branches:
	Vaughn, Canada Lawrenceburg, Tennessee South Hill, Virginia West Deptford, New Jersey

Shareholders - Manager - Related Companies
Capital:
	% of Shares Held by All Insider and 5% Owners: 2% % of Shares Held by Institutional & Mutual Fund Owners: 101% % of Float Held by Institutional & Mutual Fund Owners: 102% Number of Institutions Holding Shares: 198
Shareholders Parent Company(ies):
	Top Institutional Holders AXA HOTCHKIS & WILEY CAPITAL MANAGEMENT LSV ASSET MANAGEMENT Invesco Ltd. PRUDENTIAL PLC VANGUARD GROUP, INC. DIMENSIONAL FUND ADVISORS LP BUCKINGHAM CAPITAL MANAGEMENT COLUMBIA WANGER ASSET MANAGEMENT Allianz Global Investors of America L.P. Top Mutual Fund Holders Allianz Fds-NFJ Small Cap Value Fd COLUMBIA ACORN FD DFA U.S. SMALL CAP VALUE SERIES HOTCHKIS AND WILEY MID-CAP VALUE FUND DWS Dreman Small Cap Value Fd VANGUARD SMALL-CAP INDEX FUND ISHARES RUSSELL 2000 INDEX FD VANGUARD TOTAL STOCK MARKET INDEX FUND Alliance Bernstein Pooling Portfolios-U.S. Value Port Alliance Bernstein Small/Mid Cap Value Fund
Management:
	Mr. Sidney Kimmel, Non-Exec. Chairman Mr. Wesley R. Card,CEO Mr. John T. McClain, CFO
Related Companies:
	The Jones Group Jones Canada Jones Investment CO INC Jones Jeans Wear Group Amongst others...

Financials - COMMERCIAL TRENDS AND FORECAST

The subject is a public company traded at the stock exchange NYSE under ticker symbol "JNY". Please find enclosed the financial statements.

Legal Fillings

There are 3 UCC** files listed with the Secretary of State of New York:

File no. 048516

File Date 03/10/2000

Lapse Date 03/10/2005

Debtor Names: JONES APPAREL GROUP INC

Secured Party Names: COPELCO CAPITAL, INC

Secured Party Address: PO BOX 728, PARK RIDGE, NJ 07656-0000, USA

File no. 200402245145803

File Date 02/24/2004

Lapse Date 02/24/2009

Debtor Name: JONESAPPAREL GROUP, INC

Secured Party Name: CIT TECHNOLOGY FINANCING SERVICES, INC

Secured Party Address: 4600 TOUCHTON RD E BLDG 100, STE 300, JACKSONVILLE, FL 32246, USA

File no. 200802150130490

File Date 02/15/2008

Lapse Date 02/15/2013

Debtor Name: JONES APPAREL GROUP INC

Secured Party Name: TIMEPAYMENT CORPORATION

Secured Party Address: 10-M COMMERCE WAY, WOBURN, MA 01801, USA

There are various claims, lawsuits, and pending actions against the Company and its subsidiaries incident to the operations of its businesses. It is the opinion of management, after consultation with counsel, that the ultimate resolution of such claims, lawsuits and pending actions will not have a material adverse effect on the Company's consolidated financial position, results of operations or liquidity.

The last annual report was filed on 2/16/2010.

THE COMPANY IS NOT LISTED ON THE OFAC LIST.*

For information:

* The Specially Designated Nationals (SDN) List is a publication of OFAC which lists individuals and organizations with whom United States citizens and permanent residents are prohibited from doing business.

** The Uniform Commercial Code (UCC) is one of a number of uniform acts that have been promulgated in conjunction with efforts to harmonize the law of sales and other commercial transactions in all 50 states within the United States of America.

The UCC deals primarily with transactions involving personal property (movable property), not real property (immovable property).

It allows a creditor to notify other creditors about a debtor’s assets used as collateral for a secured transaction by filing a public notice (financing statement) with a particular filing office.

The Uniform Commercial Code Bureau files and maintains on financial obligations (including IRS liens) incurred by individuals (in business as a sole proprietor), business entities and corporations.

Rating
Local credit bureau gave a Correct credit rate.
Final Opinion
	This company has been in business for the past 40 years, it has a staff of 6,525 employees which makes a large sized company. It is publicly traded as NYSE under ticker symbol "JNY". Due to a NEGATIVE profitability for the year 2009 we strongly suggest working with GUARANTEES.

SUMMARY
FINANCIAL SUMMARY		DEBT COLLECTIONS AND PAYMENTS
Profitability	NEGATIVE	Public Records	NO
Indebtedness	CONTROLLED	Payments	REGULAR
Cash	NORMAL

Income Statement

View: Annual Data

All numbers in thousands

Period Ending		Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
Total Revenue		3,327,400	3,616,400	3,848,500
Cost of Revenue		2,181,500	2,440,200	2,609,100
Gross Profit		1,145,900	1,176,200	1,239,400
	Operating Expenses
	Research Development	-	-	-
	Selling General and Administrative	1,008,700	1,069,200	1,100,400
	Non Recurring	149,300	838,400	166,000
	Others	-	-	-
	Total Operating Expenses	-	-	-
Operating Income or Loss		(12,100)	(731,400)	(27,000)
	Income from Continuing Operations
	Total Other Income/Expenses Net	1,300	8,300	11,900
	Earnings Before Interest And Taxes	(14,500)	(723,800)	(7,000)
	Interest Expense	55,600	49,100	51,500
	Income Before Tax	(70,100)	(772,900)	(58,500)
	Income Tax Expense	16,200	(6,600)	(104,400)
	Minority Interest	(300)	-	-
	Net Income From Continuing Ops	(86,300)	(766,300)	45,900
	Non-recurring Events
	Discontinued Operations	-	900	265,200
	Extraordinary Items	-	-	-
	Effect Of Accounting Changes	-	-	-
	Other Items	-	-	-
Net Income		(86,600)	(765,400)	311,100
Preferred Stock And Other Adjustments		-	-	-
Net Income Applicable To Common Shares		($86,600)	($765,400)	$311,100

Balance Sheet

View: Annual Data

All numbers in thousands

Period Ending		Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
Assets
Current Assets
	Cash And Cash Equivalents	333,400	338,300	302,800
	Short Term Investments	-	-	-
	Net Receivables	331,200	398,200	370,900
	Inventory	375,000	509,500	523,900
	Other Current Assets	25,600	59,500	96,500
Total Current Assets		1,065,200	1,305,500	1,294,100
Long Term Investments		42,100	-	-
Property Plant and Equipment		239,000	301,000	312,100
Goodwill		40,100	160,700	973,900
Intangible Assets		559,800	590,800	618,000
Accumulated Amortization		-	-	-
Other Assets		74,900	55,300	38,500
Deferred Long Term Asset Charges		3,900	14,200	-
Total Assets		2,025,000	2,427,500	3,236,600
Liabilities
Current Liabilities
	Accounts Payable	311,800	358,800	390,800
	Short/Current Long Term Debt	2,600	253,100	4,800
	Other Current Liabilities	9,700	-	-
Total Current Liabilities		324,100	611,900	395,600
Long Term Debt		526,400	549,700	777,700
Other Liabilities		82,000	83,700	66,500
Deferred Long Term Liability Charges		-	-	-
Minority Interest		100	-	-
Negative Goodwill		-	-	-
Total Liabilities		932,600	1,245,300	1,239,800
Stockholders' Equity
Misc Stocks Options Warrants		-	-	-
Redeemable Preferred Stock		-	-	-
Preferred Stock		-	-	-
Common Stock		1,600	1,500	1,500
Retained Earnings		1,564,400	1,668,000	2,480,800
Treasury Stock		(1,826,300)	(1,826,300)	(1,827,300)
Capital Surplus		1,360,300	1,350,700	1,339,700
Other Stockholder Equity		(7,600)	(11,700)	2,100
Total Stockholder Equity		1,092,400	1,182,200	1,996,800
Net Tangible Assets		$492,500	$430,700	$404,900

Income Statement

View: Quarterly Data

All numbers in thousands

Period Ending		Oct 2, 2010	Jul 3, 2010	Apr 3, 2010	Dec 31, 2009
Total Revenue		1,022,000	859,600	887,300	776,700
Cost of Revenue		679,400	542,400	561,100	510,600
Gross Profit		342,600	317,200	326,200	266,100
	Operating Expenses
	Research Development	-	-	-	-
	Selling General and Administrative	282,500	261,900	249,900	245,600
	Non Recurring	-	-	-	149,300
	Others	-	-	-	-
	Total Operating Expenses	-	-	-	-
Operating Income or Loss		60,100	55,300	76,300	(128,800)
	Income from Continuing Operations
	Total Other Income/Expenses Net	400	400	400	1,000
	Earnings Before Interest And Taxes	61,000	55,700	74,900	(128,700)
	Interest Expense	14,600	14,700	12,400	9,100
	Income Before Tax	46,400	41,000	62,500	(137,800)
	Income Tax Expense	17,200	15,200	23,100	(7,500)
	Minority Interest	(200)	(100)	(200)	(100)
	Net Income From Continuing Ops	29,500	25,700	37,400	(127,300)
	Non-recurring Events
	Discontinued Operations	-	-	-	-
	Extraordinary Items	-	-	-	-
	Effect Of Accounting Changes	-	-	-	-
	Other Items	-	-	-	-
Net Income		29,000	25,700	39,200	(130,400)
Preferred Stock And Other Adjustments		-	-	-	-
Net Income Applicable To Common Shares		$29,000	$25,700	$39,200	($130,400)

Balance Sheet

View: Quarterly Data

All numbers in thousands

Period Ending		Oct 2, 2010	Jul 3, 2010	Apr 3, 2010	Dec 31, 2009
Assets
Current Assets
	Cash And Cash Equivalents	34,000	133,200	222,200	333,400
	Short Term Investments	-	-	-	-
	Net Receivables	556,300	406,600	471,800	331,200
	Inventory	513,600	414,900	353,600	375,000
	Other Current Assets	37,000	42,300	35,300	25,600
Total Current Assets		1,140,900	997,000	1,082,900	1,065,200
Long Term Investments		40,000	40,100	39,700	42,100
Property Plant and Equipment		230,500	241,400	231,700	239,000
Goodwill		161,800	161,800	46,800	40,100
Intangible Assets		766,700	778,300	584,500	559,800
Accumulated Amortization		-	-	-	-
Other Assets		95,700	89,300	69,700	74,900
Deferred Long Term Asset Charges		-	-	-	3,900
Total Assets		2,435,600	2,307,900	2,055,300	2,025,000
Liabilities
Current Liabilities
	Accounts Payable	397,700	317,000	276,500	311,800
	Short/Current Long Term Debt	27,600	2,200	2,300	2,600
	Other Current Liabilities	-	10,300	-	9,700
Total Current Liabilities		425,300	329,500	278,800	324,100
Long Term Debt		733,100	529,800	526,000	526,400
Other Liabilities		82,300	284,800	105,500	82,000
Deferred Long Term Liability Charges		3,000	2,700	9,300	-
Minority Interest		100	100	200	100
Negative Goodwill		-	-	-	-
Total Liabilities		1,243,800	1,146,900	919,800	932,600
Stockholders' Equity
Misc Stocks Options Warrants		-	-	-	-
Redeemable Preferred Stock		-	-	-	-
Preferred Stock		-	-	-	-
Common Stock		1,600	1,600	1,600	1,600
Retained Earnings		1,645,200	1,620,500	1,599,300	1,564,400
Treasury Stock		(1,826,300)	(1,826,300)	(1,826,300)	(1,826,300)
Capital Surplus		1,378,100	1,372,700	1,367,800	1,360,300
Other Stockholder Equity		(6,800)	(7,500)	(6,900)	(7,600)
Total Stockholder Equity		1,191,800	1,161,000	1,135,500	1,092,400
Net Tangible Assets		$263,300	$220,900	$504,200	$492,500

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.38
UK Pound	1	Rs.72.71
Euro	1	Rs.61.15

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	--

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%)

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