MIRA INFORM REPORT

Report Date :

23.07.2011

IDENTIFICATION DETAILS

Name :	JAIN AMAR COLOTHING PRIVATE LIMITED

Registered Office :	992/1, Pipal Building, Chawal Bazar, Ludhiana-141008, Punjab

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	19.04.2006

Com. Reg. No.:	16-030070

Capital Investment/ Paid-up Capital:	Rs. 9.100 Millions

CIN No.: [Company Identification No.]	U45202PB2006PTC030070

TAN No.: [Tax Deduction & Collection Account No.]	JLDJ01513B

PAN No.: [Permanent Account No.]	AABCJ8065G

Legal Form :	Private Limited Liability Company.

Line of Business :	Manufacturer and Supplier of Cardigans, Woolen Coat, Jacket, Coat Patent, Trousers, Capri, Nights, Top, Kurtis, Sweaters etc.

No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 360000

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

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

LOCATIONS

Registered Office :	992/1, Pipal Building, Chawal Bazar, Ludhiana-141008, Punjab, India
Tel. No.:	91-161-3234040/ 2704301/ 2705313
E-Mail :	bkg.majestic@gmail.com

DIRECTORS

As on 16.09.2010

Name :	Mr. Kasturilal Jain
Designation :	Managing Director
Address :	60-A, Kitchlu Nagar, Ludhiana-141001, Punjab, India
Date of Birth/Age :	25.03.1931
DIN No.:	01563002

Name :	Mr. Sunil Kumar Jain
Designation :	Director
Address :	60-A, Kitchlu Nagar, Ludhiana-141001, Punjab, India
Date of Birth/Age :	06.10.1955
DIN No.:	01563032

Name :	Mr. Bipan Jain
Designation :	Director
Address :	60-A, Kitchlu Nagar, Ludhiana-141001, Punjab, India
DIN No.:	01563074

Name :	Mr. Akhil Jain
Designation :	Director
Address :	60-A, Kitchlu Nagar, Ludhiana-141001, Punjab, India
DIN No.:	16.03.1982

Name :	Mr. Vibhav Jain
Designation :	Whole Time Director
Address :	60-A, Kitchlu Nagar, Ludhiana-141001, Punjab, India
Date of Birth/Age :	14.10.1984
Date of Ceasing:	27.02.2010
DIN No.:	01563104

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 16.09.2010

Names of Shareholders		No. of Shares
Kasturi Lal Jain		50000
Sunil Kumar Jain		49620
Bipan Jain		50000
Akhil Jain		25000
Vibhav Jain		25000
Kasturi Lal Jain and Songs (HUF)		560000
Kamal Jain		50000
Neelam Jain		50000
Sangeet Jain		50000
Bipan Jain (HUF)		10
Sunil Kumar Jain and Sons (HUF)		10
Vani Jain		10
Ashish Jain		10
Bagish Kumar Jaina and Sons (HUF)		10
Jawahar Lal Sons and HUF		10
Madan Lal Jain and Sons (HUF)		10
Mamta Jain		10
Naval Jain		10
Neetu Jain		10
Raj Kimari Hain		10

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Supplier of Cardigans, Woolen Coat, Jacket, Coat Patent, Trousers, Capri, Nights, Top, Kurtis, Sweaters etc.

GENERAL INFORMATION

Bankers :

HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel West, Mumbai-400013, Maharashtra, India

Facilities :

Secured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Working Capital Facilities
From Banks	72.116	78.629
Term Loans
From Banks	46.848	41.534
Car Loans
From Banks	0.000	0.410
From Others	0.445	0.931
Total	119.409	121.504
Note: Working Capital Facilities are secured by hypothecation of stocks of all book debts and credit card receipts of the company and further secured by charge on the immovable properties and also guaranteed by the directors of the company. Term Loans are secured by way of hypothecation of plant and machinery and further secured by charge on the immovable properties and also guaranteed by the directors of the company. Loans against vehicles in secured by hypothecation of vehicles purchased out of such loans.
Unsecured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
From Directors	34.111	37.165
From Others	215.807	59.806
From Banks	0.145	0.047
Total	250.063	97.018


Banking Relations :	--

Auditors :
Name :	Jain Subhash and Company Chartered Accountant
Address :	B-I-645/3l, Dr. Bindraban Road, Opposite Vishunpuril, Street No. 5, Civil Lines, Ludhiana-141001, Punjab, India

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount

1000000	Equity Shares	Rs. 10/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

910000	Equity Shares	Rs. 10/- each	Rs. 9.100 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		9.100	9.100	9.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		79.733	50.104	21.308
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		88.833	59.204	30.408
LOAN FUNDS
1] Secured Loans		119.409	121.504	70.812
2] Unsecured Loans		250.063	97.018	67.438
TOTAL BORROWING		369.472	218.522	138.250
DEFERRED TAX LIABILITIES		0.536	0.700	0.011

TOTAL		458.841	278.426	168.669

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		146.315	120.025	49.488
Capital work-in-progress		0.148	2.214	0.061

INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	242.159	178.348	5.887
	Sundry Debtors	115.152	93.930	95.451
	Cash & Bank Balances	8.421	5.892	82.321
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	55.480	49.930	46.158
Total Current Assets		421.212	328.100	229.817
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	25.560	107.398	60.051
	Other Current Liabilities	67.773	49.591	39.190
	Provisions	15.569	15.027	11.594
Total Current Liabilities		108.902	172.016	110.835
Net Current Assets		312.310	156.084	118.982

MISCELLANEOUS EXPENSES		0.068	0.103	0.138

TOTAL		458.841	278.426	168.669

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Operating and Other Income	667.003	529.609	424.266
		TOTAL	667.003	529.609	424.266

Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses	621.692	485.096	391.352
		Depreciation
		Interest
		TOTAL	621.692	485.096	391.352

	PROFIT BEFORE TAX		45.311	44.513	32.914

Less	TAX		15.683	15.717	11.606

	PROFIT AFTER TAX		29.628	28.796	21.308

	Earnings Per Share (Rs.)		32.56	--	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.44	5.44	5.02

Return on Total Assets (PBT/Total Assets}	(%)	7.98	9.93	11.78

Return on Investment (ROI) (PBT/Networth)		0.51	0.75	1.08

Debt Equity Ratio (Total Liability/Networth)		5.38	6.60	8.19

Current Ratio (Current Asset/Current Liability)		3.87	1.91	2.07

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

During the year total income of the company is Rs. 667.003 Millions and the company has gained a profit of Rs. 29.628 Millions this year.

Contingent Liabilities not provide for in the respect of books of accounts.

Particulars

31.03.2010

Rs. in Millions

Bank Guarantee

1.000

Bankers Charges Report as per Registry

Corporate identity number of the company	U45202PB2006PTC030070
Name of the company	JAIN AMAR COLOTHING PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	992/1, Pipal Building, Chawal Bazar, Ludhiana-141001, Punjab, India
This form is for	Modification of charge
Charge identification number of the charge to be modified	10064338
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel West, Mumbai-400013, Maharashtra, India
Nature of instrument creating charge	Supplementary Letter of Hypothecation
Date of instrument Creating the charge	27.10.2010
Amount secured by the charge	Rs. 275.150 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest at the rate as may be communicated by the bank from time to time. Terms of Repayment Working Capital Facility shall be payable on demand Term Loan facility shall be repayable in suitable installments. Margin As may be stipulated by the Bank from time to time Extent and Operation of the charge Hypothecation by way of first charge on company’s stock in trade, book debts, plant and machinery and Vehicles etc. to secure as continuing security for the repayment of Rs. 275.150 Millions together with interest, costs, charges, expenses and other moneys due and payable by the company to the bank.
Short particulars of the property charged	Stock in Trade, consisting of raw materials, goods in process of manufacturing finished goods, and other merchandise whatsoever being movable properties All the debts, that is all the book debts, outstandings, monies receivables, claims, bills, invoice documents, contracts, guarantees and rights. The movable plant and machinery and vehicles, which may now or at any time hereafter belongin to the borrower or come to the borrower’s disposal.
Date of instrument modifying the charge	01.09.2010
Particulars of the present modification	The charge shall now stand increase form Rs. 217.650 Millions to Rs. 275.150 Millions (Comprising : Overall facility under the MFA/ Addendum of Rs. 160.000 Millions. Term Loan of Rs. 115.150 Millions) against the security of stock in trade, book debts, plant and machinery and vehicles of the company.

Fixed Assets:

· Building

· Plant and Machinery

· Office Equipments

· Vehicles

· Computers

· Furniture and Fixtures

· Electric Fittings

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.44.38
UK Pound	1	Rs.72.34
Euro	1	Rs.63.87

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--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	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

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.

MIRA INFORM REPORT

242.159

115.152

8.421

55.480

421.212

25.560

67.773

15.569

108.902

312.310

4.44

7.98

0.51

5.38

3.87

Unit