MIRA INFORM REPORT

Report Date :

06.07.2011

IDENTIFICATION DETAILS

Name :	GOODLUCK GARMENTS PRIVATE LIMITED
Registered Office :	C-27, Udyognagar, Navsari – 396445, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	05.02.1992
Com. Reg. No.:	04-017056
Capital Investment / Paid-up Capital :	Rs.3.000 Millions
CIN No.: [Company Identification No.]	U18109GJ1992PTC017056
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Readymade Garments
No. of Employees :	150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 20000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. 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. Bilal Kapadia
Designation :	Export Manager
Contact No.:	91-9825258662
Date :	05.07.2011

LOCATIONS

Registered Office/Factory :	C-27, Udyognagar, Navsari – 396445, Gujarat, India
Tel. No.:	91-2637-257482 / 242795
Mobile No.:	91-9825258662 (Mr. Bilal Kapadia)
Fax No.:	91-2637-249122
E-Mail :	agshaikh_cs@yahoo.co.in goodluckgarments2004@yahoo.com
Area :	2400 Sq. ft.
Location :	Rented

DIRECTORS

(AS ON 30.09.2010)

Name :	Mr. S Hajiba Babubhai Kapadia
Designation :	Chairman Cum Managing Director
Address :	Navin Nagar, Opposite Tata School, Navsari – 396445, Gujarat, India
Date of Birth/Age :	11.07.1938
Qualification :	S.S.C.
Date of Appointment :	05.02.1992
Name :	Mr. Allarakhu Babubhai Kapadia
Designation :	Director
Address :	Tarota Bazar, Bamjiwad, Navsari – 396445, Gujarat, India
Date of Birth/Age :	20.03.1962
Qualification :	H.S C.
Date of Appointment :	05.02.1992
Name :	Mr. Abdul Razak Babubhai Kapadia
Designation :	Director
Address :	Navin Nagar, Opposite Tata School, Navsari – 396445, Gujarat, India
Date of Birth/Age :	22.01.1959
Date of Appointment :	30.09.1993

KEY EXECUTIVES

Name :	Mr. A G Shaikh
Designation :	Company Secretary
Address :	M-2, Super Tex Tower, Opp. Kinnary Cinema, Ring Road, Surat – 395002, Gujarat, India
Tel No.:	91-9825142570
Email :	agshaikh_cs@yahoo.co.in
Name :	Mr. Bilal Kapadia
Designation :	Export Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2010)

Names of Shareholders	No. of Shares
Haji Babubhai S Kapadia	17100
Allarakhu B Meman (Kapadia)	21100
Abdul Razak Kapadia	21500
Illias B Kapadia	19500
Arif B Kapadia	17800
Hanif B Kapadia	16500
Zubair B Kapadia	15800
Jillubai Babubhai Kapadia	12000
Sabina A Kapadia	12000
Nahid I Kapadia	12000
Faridabai A Kapadia	12000
Zubin A Kapadia	12000
Shabbir Ahmed Ibrahim Patel	24500
Ibrahim Isap Patel	19500
Ibrahim Mohded Desai	18300
Gulam Mohammed Isap Patel	11000
Hawa Gulam Ahmed Fulat	10900
Ibrahim Mohammed Fulat	9000
Ismail Isap Kantharia	10000
Ismail Asmaji Aswat	7500
Total	300000

(AS ON 30.09.2010)

Category	Percentage
Directors or relatives of directors	63.00
Other top fifty (50) shareholders (other than listed above)	37.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Readymade Garments
Products :	· Formal Pants · Casual Trousers · Office Wear Pants · Plain Trouser · Lining Trouser · Long Sleeve Shirts · Half Sleeves Shirts · Pure Cotton Shirts · Party Wear Shirts · Formal Shirts · Casual Shirts · Embroidered Shirts
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

Wholesalers

No. of Employees :

150 (Approximately)

Bankers :

· Canara Bank, Kadiawad, Navsari

· HDFC Bank, Navsari Branch, Gujarat, India

· Bank of Baroda

· IDBI Bank, Navsari, Gujarat, India

· ICICI Bank

Facilities :

Secured Loans	31.03.2010	31.03.2009
	Rs. In Millions
Pending Credit Facility with Canara Bank (Hypothecation of Raw Material)	0.000	0.075
HDFC Car Loan.	0.000	0.002
HDFC Motor Cycle Loan	0.007	0.009
HDFC Car Loan	0.703	0.000
Total	0.710	0.086
Unsecured Loans	31.03.2010	31.03.2009
	Rs. In Millions
From Share Holder	0.000	0.000
From Others	1.449	0.780
Total	1.449	0.780

Banking Relations :	--
Auditors :
Name :	Ghael and Associates Chartered Accountant
Address :	101-A, Janta Apartments, Station Road, Navsari – 396145, Gujarat, India

CAPITAL STRUCTURE

AS ON 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.10/- each	Rs.3.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.10/- each	Rs.3.000 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		3.000	3.000	3.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1.961	1.668	1.260
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		4.961	4.668	4.260
LOAN FUNDS
1] Secured Loans		0.710	0.086	0.472
2] Unsecured Loans		1.449	0.780	1.826
TOTAL BORROWING		2.159	0.866	2.298
DEFERRED TAX LIABILITIES		0.000	0.000	0.085
TOTAL		7.120	5.534	6.643
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.488	0.827	1.002
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.022	0.020	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3.426	1.750	0.655
	Sundry Debtors	56.410	56.714	54.189
	Cash & Bank Balances	1.250	0.561	0.294
	Other Current Assets	0.071	0.066	0.065
	Loans & Advances	1.564	9.688	4.919
Total Current Assets		62.721	68.779	60.122
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	56.661	59.736	51.049
	Other Current Liabilities	0.450	4.356	3.432
	Provisions
Total Current Liabilities		57.111	64.092	54.481
Net Current Assets		5.610	4.687	5.641
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		7.120	5.534	6.643

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		GROSS INCOME (Including Increase/ Decrease in stocks)	81.836	88.086	69.865
Less	EXPENSES
		TOTAL	81.329	87.674	69.487
	PROFIT BEFORE TAX		0.507	0.412	0.379
Less	TAX		0.122	0.213	0.046
	PROFIT AFTER TAX		0.385	0.408	0.333
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.668	1.260	1.072
Less	Provision for Taxation/ Prior Period Adjustments		0.092	0.000	0.145
	BALANCE CARRIED TO THE B/S		1.961	1.668	1.260
	IMPORTS
		Raw Materials	38.678	49.012	41.901
	TOTAL IMPORTS		38.678	49.012	41.901
	Earnings Per Share (Rs.)		1.28	1.36	1.11

Particulars	31.03.2011
Sales Turnover (Approximately)	75.000

Expected Sales (2011-12): Rs.80.000 Millions

The above information has been parted by Mr. Bilal

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.47	0.46	0.48
Return on Total Assets (PBT/Total Assets}	(%)	0.79	0.59	0.62
Return on Investment (ROI) (PBT/Networth)		0.10	0.09	0.09
Debt Equity Ratio (Total Liability/Networth)		11.95	13.92	13.33
Current Ratio (Current Asset/Current Liability)		1.10	1.07	1.10

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL RESULTS:

The Directors report that during the year, the company has posted gross income of Rs.81.836 as compared to Rs.88.086 Millions in the corresponding previous year. The company has posted a net profit of Rs.0.385 Million as compared to the net profit Rs.0.408 Million in the corresponding previous year. In view of the requirements of the profit in strengthening the operations of business, the directors do not recommend any dividend and the entire amount of balance of Profit and Loss Account is carried to the Balance Sheet under the head “Reserve and Surplus”.

FIXED ASSETS:

· Plant and Machinery

· Furniture and Fixture

· Office Equipment

· Electrical Installation

· Vehicle

· Computer

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.44.46
UK Pound	1	Rs.71.53
Euro	1	Rs.64.63

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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		27

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.