MIRA INFORM REPORT

Report Date :

27.01.2011

IDENTIFICATION DETAILS

Name :	Elite Team Trading LTD
Registered Office :	Room 607B, 6/F., Empire Centre, 68 Mody Road, Tsimshatsui East, Kowloon
Country :	Hong Kong
Date of Incorporation :	17.12.2008
Com. Reg. No.:	50728765
Legal Form :	Private Limited Company
Line of Business :	Importer and Exporter of all kinds of Garments.

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

Status :	Satisfactory
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)
Hong Kong	A2	A2

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

Company name and address

ELITE TEAM TRADING LTD.

Room 607B, 6/F., Empire Centre, 68 Mody Road, Tsimshatsui East, Kowloon, Hong Kong.

PHONE:2367 0899, 2367 0989

FAX:2367 0303

MANAGEMENT

Managing Director: Mr. Rakesh Kumar Rawat

SUMMARY

Incorporated on: 17th December, 2008.

Organization: Private Limited Company.

Capital: Nominal: HK$1,000,000.00

Issued: HK$1,000,000.00

Business Category: Garment Trader.

Group Total Income: Rs 51,949.70 million (Year ended 31-03-2010)

Employees: 10.

Main Dealing Banker: Bank of India, Hong Kong Branch.

Banking Relation: Satisfactory.

Company address

ADDRESS:

Registered Head Office:-Room 607B, 6/F., Empire Centre, 68 Mody Road, Tsimshatsui East, Kowloon, Hong Kong.

Holding Company:-Provogue (India) Ltd., India.

Affiliated Companies:-Provogue Group of Companies

Acme Advertisements Private Ltd., India.

Flowers, Plants & Fruits (India) Private Ltd., India.

Millennium Accessories Ltd., India.

Oasis Fashion Ltd., India.

Probrand Enterprises Ltd., India.

Profab Fashion (India) Ltd., India.

Pronet Interactive Private Ltd., India.

Provogue Holding Ltd., Singapore.

Provogue Infrastructure Private Ltd., India.

Prozone Enterprises Private Ltd., India.

Alliance Mall Developers Co. Private Ltd., India.

Castle Mall Private Ltd., India.

Faridabad Festival City Private Ltd., India.

Jaipur Festival City Private Ltd., India.

Meerut Festival City Private Ltd., India.

Prozone Liberty International Ltd., Singapore.

Prozone International Coimbatore Ltd., Singapore.

Prozone International Ltd., Singapore.

Empire Mall Private Ltd., India.

Hagwood Commercial Developers Private Ltd., India.

Omni Infrastructure Private Ltd., India.

Prozone Overseas Pte. Ltd., Singapore.

Royal Mall Private Ltd., India.

Standard Mall Private Ltd., India.

Sporting & Outdoor Ad Agency Private Ltd., India.

etc.

BUSINESS REGISTRATION NUMBER

50728765

COMPANY FILE NUMBER

1295116

MANAGEMENT

Managing Director: Mr. Rakesh Kumar Rawat

CAPITAL

Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$1,000,000.00

SHAREHOLDER

(As per registry dated 09-03-2010)

Name	No. of shares
Provogue (India) Ltd. 105/106, Provogue House, Off New Link Road, Andheri (West), Mumbai-400 053, Maharashtra, India.	1,000,000 =======

DIRECTOR

(As per registry dated 08-03-2010)

Name (Nationality)	Address
Rakesh Kumar RAWAT	1401, Vastu Heights, G9, Sundervan Complex, Off Lokhandwala Road, Andheri (West), Mumbai-400 053, India.

SECRETARY

(As per registry dated 17-12-2009)

Name	Address	Co. No.
Tam & Wongs Nominee Ltd.	1/F., Hang Lung House, 188 Queen’s Road Central, Hong Kong.	0187810

HISTORY

The subject was incorporated on 17th December, 2008 as a private limited liability company under the Hong Kong Companies Ordinance.

Last time, the subject was located at Flat B, 17/F., Star Mansion, 3-5 Minden Row, Mody Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address with effect from 9th March, 2010.

Apart from these, neither material change nor amendment has been ever traced and noted.

OPERATIONS

Activities: Importer and Exporter.

Lines: All kinds of garments, etc.

Employees: 10.

Commodities Imported: China, other Asian countries, etc.

Markets: India, etc.

Group Total Income: Rs 34,972.47 million (Year ended 31-03-2008)

Rs 44,639.08 million (Year ended 31-03-2009)

Rs 51,949.70 million (Year ended 31-03-2010)

Terms/Sales: As per contracted.

Terms/Buying: Various terms.

FINANCIAL INFORMATION

Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$1,000,000.00

Alternation of Capital:-

17-12-2008	paid up	HK$ 1.00
09-03-2010	paid up	HK$ 999,999.00
		–––––––––––––––
Total:	paid up	HK$ 1,000,000.00 ==============

Increase of Nominal Capital:-

From

HK$10,000.00

to

HK$1,000,000.00

on

09-03-2010

Mortgage or Charge (since August 2010): (See attachment)

Group Profit After Tax: Rs 2,478.86 million (Year ended 31-03-2008)

Rs 7,095.82 million (Year ended 31-03-2009)

Rs 2,131.09 million (Year ended 31-03-2010)

Profit or Loss: Making a very small profit in 2009.

Condition: Business has been normal.

Facilities: Making fairly active use of general banking facilities.

Payment: Met trade commitments as required.

Commercial Morality: Fairly satisfactory.

Banker: Bank of India, Hong Kong Branch.

Standing: Normal.

GENERAL

Elite Team Trading Ltd. is a wholly-owned subsidiary of Provogue (India) Ltd. [Provogue] which is an India-based firm. The subject is a fashion apparel trader which is the same lines of business as its parent.

Provogue, together with its subsidiaries (collectively called Provogue Group), is engaged in the manufacture, distribution, and sale of fashion apparel for men and women under the “Provogue” brand name in India. It launched the fashion brand “Provogue” in March 1998. Its men’s apparel range consists of casual and formal wear, including shirts, trousers, T-shirts, sweaters, shorts, suits, and jackets; and women’s apparel range includes western wear tops, trousers, skirts, jackets, and blouses. Provogue also offers various fashionable accessories, such as ties, socks, handkerchiefs, belts, wallets, eyewear, bags, and caps for men; and chic belts, handbags, eyewear, and scarves for women. Its product portfolio also comprises footwear and innerwear for men. In addition, Provogue exports a range of textile products, including fabrics, fabric designs, dyestuffs, and textile machinery.

Provogue sells its products through selective stores and malls, as well as company-operated outlets under “Provogue Studio” brand throughout India. As of 31st March, 2006, it had 64 Provogue Studio outlets.

Headquartered in Mumbai, India, Provogue was founded on 11th November, 1997. It has acquired from Acme Global the entire business of export of textile; textile machinery and textile related chemicals and operates these businesses as its division under the name Acme Global.

The beginning of 1998 saw Provogue being launched in a Multi Brand Outlet, i.e. The Bombay Stores, Mumbai and progressing to 120 Multi Brand Outlets by the end of 1999. The first exclusive “Provogue” store was opened in Lokhandwala Complex, Andheri, Mumbai in the year 2000. Provogue was able to achieve market penetration by hosting fashion shows across the country along with an aggressive advertising and PR campaign, which enabled it in persuading a potential customer to its brand and its outlets to buy Provogue’s apparels

Provogue has established a distribution network across India covering Metro, A Class cities and B Class cities. Over the years, Provogue introduced other product categories like men’s trousers, socks, wallets, T-shirts as well as women’s wear, which received an overwhelming response from its customers. Though the products introduced by Provogue were doing exceedingly well, the total retail area available to Provogue was not adequate and restricted it to a few Multi Brand outlets and one exclusive store in Mumbai. However, in terms of sales, Provogue achieved sales of Rs 1,400 million (approximately US$3 million) in the year 2000.

Although the sales continued to grow rapidly, expansion had still not reached its true potential on account of the limited retail area. To meet the growing demand of its products, the idea of having its exclusive stores was conceived and thirty-six Studio Stores were planned to be opened in a time frame of about two years. To achieve further growth in sales, Hollywood actor Fardeen Khan was signed up as the brand ambassador in July 2001. This gave impetus to Provogue’s marketing initiatives and endorsement by the brand ambassador reinforced the brand image as a trend-setting brand. Provogue expanded its product lines to include knitwear, woolens, ties, scarves, handbags and other accessories. By December 2002, Provogue had already opened twelve Studio Stores all across the country. Simultaneously, Provogue also expanded its presence in large chain stores like Shopper’s Stop and Piramyd all over India and was the first brand to be introduced in Westside, a leading retail store.

Provogue started its first manufacturing facility at Daman on 7th April, 2003, with an installed capacity of 2000 shirts per day. However, Provogue outsourced its requirements for trousers and other accessories. The manufacturers and suppliers are selected for supply to Provogue only if they meet the Provogue’s quality standards. The manufacturer has to undergo quality control inspections and tests conducted by Provogue before the trousers and accessories are branded as that of Provogue.

For the year ended 31st March, 2010, the sales of the Group amounted to Rs 51,950 million, grew by 16.4% as compared with Rs 44,639 million in FY 2009; profit after tax was Rs 2,131 million, decreased by 70.0% as compared with Rs 7,096 million in FY 2009.

The subject is fully supported by Provogue.

On the whole, consider it good for normal business engagements.

REMARKS

Brief personal profile of the director:-

Mr. Rakesh Kumar RAWAT, aged 35, whole-time Director, is an MBA, University of Rajasthan. He has been instrumental in the growth of Provogue. He is a specialist in the field of International Trade. He has been responsible for marketing, vendor management and fund management and mobilization activities. He has played a key role in setting up of systems and process for setting up the export business and all matters relating to Banking and Finance. He has worked with Andhi Marble Pvt. Ltd. and Saraswati Overseas handling their export business as Export Manager and Working Partner, Exports respectively.

Court Cases: None per our.

MORTGAGE OR CHARGE

(Since August 2010)

Date	Particulars	Amount
28-10-2010	Instrument: General Letter of Hypothecation Property: Bills of exchange, and/or invoices, or any other documents representing or relating to goods. The Company agree that the same and all goods thereby represented or to which the document relate shall be hypothecated by way of first charge as a continuing security for all sums in which the Company from time to time be actually or contingently indebted or liable to Bank on any account Mortgagee: Bank of India, Hong Kong Branch.	All the money
17-11-2010	Instrument: Letter of Lien Property: Nature of Deposit: Fixed Fixed Fixed Date of Deposit: 04-11-2010 15-11-2010 16-11-2010 Amount: US$100,000.00 US$199,974.00 US$25,946.16 Due Date: 04-11-2011 04-11-2011 04-11-2011 Rate of Interest: 1.51% 1.51% 1.51% Mode of Payment of Interest: Upon maturity Upon maturity Upon maturity Mortgagee: Bank of India, Hong Kong Branch.	HK$10,000,000

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.53
UK Pound	1	Rs.72.79
Euro	1	Rs.62.14

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 Company	----

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.