MIRA INFORM REPORT

Report Date :

18.06.2011

IDENTIFICATION DETAILS

Name :	MAJOR BRANDS (INDIA) PRIVATE LIMITED
Registered Office :	402-A, Poonam Chambers, Dr. A B Road, Worli, Mumbai – 400018, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	08.05.2001
Com. Reg. No.:	131895
Capital Investment / Paid-up Capital :	Rs.26.110 Millions
CIN No.: [Company Identification No.]	U18101MH2001PTC131895
TAN No.: [Tax Deduction & Collection Account No.]	MUMM14472D
PAN No.: [Permanent Account No.]	AACCM4949B
Legal Form :	Private Limited Liability Company
Line of Business :	They are into Retail Brand Industry
No. of Employees :	500 (In office)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 696108
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.

INFORMATION PARTED BY

Name :	Mr. Jatin Joshi
Designation :	Accounts Manager
Date :	18.06.2011

LOCATIONS

Registered Office :	402-A, Poonam Chambers, Dr. A B Road, Worli, Mumbai – 400018, Maharashtra, India
Tel. No.:	91-22-24975050
Fax No.:	91-22-24975052
E-Mail :	Jatin..d@majorbrands.in Nilesh.u@majorbrands.in
Website :	www.majorbrands.in
Area :	2000sq,fts
Location :	Rented
Showroom :	75 Showrooms all over India

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Govind Bharwani
Designation :	Director
Address :	Flat No.507, 317-22A, Zabebat Dole, DM 3, Post Box, 27401, United Arab Emirates
Date of Birth/Age :	17.07.1968
Date of Appointment :	25.05.2010
Name :	Mr. Kamal Kotak
Designation :	Director
Address :	Plot nO.52, Shakti Nagar Society, Dabhure Road, Veraval, Junagadh, Gujarat, India
Date of Birth/Age :	12.11.1976
Date of Appointment :	24.12.2007
Name :	Mr. Neeraj Teckchandani
Designation :	Director
Address :	G-289, Shastri Nagar, Jodhur – 342003, India
Date of Birth/Age :	23.08.1972
Date of Appointment :	24.12.2007

KEY EXECUTIVES

Name :	Mr. Jatin Joshi
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Nilesh Ved	2507027
Sima Ganwani Ved	1839888
European Apparels Limited, Mauritius	33444
Govind Bharwani	65538
TOTAL	4445897

AS ON 30.09.2010

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	98.53
Directors or relatives of Directors	1.47
Total	100.00

BUSINESS DETAILS

Line of Business :	They are into Retail Brand Industry
Exports :
Products :	Branded Cloths and Accessories
Countries :	Dubai
Imports :
Products :	Branded Cloths and Accessories
Countries :	Spain, Canada
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

500 (In office)

Bankers :

HDFC Bank Limited, HDFC BANK Housesenapati Bapat Marg, Lower Parel W, Mumbai - 400013, Maharashtra, India

Facilities :

SECURED LOAN	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Vehicle Loan from Banks (Secured by hypothecation of vehicle)	1.384	0.000
TOTAL	1.384	0.000
UNSECURED LOAN	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Short Term Loan
From Banks	156.901	250.850
Interest accrued and due thereon	0.459	0.000
Note: Short Term Loans from Bank Include Loan towards working capital loan with Standard chartered Bank Rs.102.641 Millions HDFC Bank Rs.54.000 Millions are against Irrevocable standby letter of credit from Standard chartered Bank UAE, and ICIC Bank Limited, Respectively.
Other Loans
From Banks	0.000	38.400
Interest accrued and due thereon	0.000	7.081
TOTAL	157.360	296.343

Banking Relations :	--
Auditors :
Name :	Deloittle Haskins and Sells Chartered Accountant
Address :	12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai– 400018, Maharashtra, India
Associates/Subsidiaries :	Fashoin Brands India Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2611000	Equity Shares	Rs.10/- each	Rs.26.110 Millions

Note: Of the above, 1310772 equity shares of Rs.10/- each were allotted to the share holders of Fashion Brands (India) Private Limited for consideration otherwise than cash as per the scheme of agreement approved by Bombay High Court in the previous year.

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2011
Sales Turnover (Approximately)	2000.000

The above information has been parted by Mr. Jatin Joshi (Accounts Manager)

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		26.110	26.110	10.000
2] Share Application Money		61.382	0.000	0.000
3] Reserves & Surplus		86.535	25.549	16.223
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		174.027	51.659	26.223
LOAN FUNDS
1] Secured Loans		1.384	0.000	0.000
2] Unsecured Loans		157.360	296.343	126.819
TOTAL BORROWING		158.744	296.343	126.819
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		332.771	348.002	153.042
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		218.076	160.234	81.096
Capital work-in-progress		5.649	13.011	6.668
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		12.596	9.564	0.899
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	272.228	241.990	112.965
	Sundry Debtors	4.381	22.515	0.580
	Cash & Bank Balances	6.346	3.199	1.759
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	147.004	131.490	58.599
Total Current Assets		429.959	399.194	173.903
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	234.437	223.685	125.784
	Other Current Liabilities	56.754	11.609	5.300
	Provisions	42.319	2.822	1.610
Total Current Liabilities		333.510	238.116	132.694
Net Current Assets		96.449	161.078	41.209
MISCELLANEOUS EXPENSES		0.000	4.115	23.170
TOTAL		332.771	348.002	153.042

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		TOTAL	1380.994	1066.225	351.200
Less	EXPENSES
		TOTAL	1306.683	1051.638	364.401
	PROFIT BEFORE TAX		74.310	14.586	(13.201)
Less	TAX		13.325	(2.255)	(0.009)
	PROFIT AFTER TAX		60.985	16.841	(13.192)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	20.801	NA
	TOTAL EARNINGS		NA	20.801	NA
	IMPORTS
		Capital Goods	32.395	19.813	NA
	TOTAL IMPORTS		32.395	19.813	NA
	Earnings Per Share (Rs.)		23.36	7.17	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.42	1.58	(3.76)
Return on Total Assets (PBT/Total Assets}	(%)	11.47	2.61	(5.18)
Return on Investment (ROI) (PBT/Networth)		0.43	0.28	(0.50)
Debt Equity Ratio (Total Liability/Networth)		2.83	10.35	9.90
Current Ratio (Current Asset/Current Liability)		1.29	1.68	1.31

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. In Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors
The total outstanding dues to Micro Enterprises and Small Enterprises	--	--	--
The total outstanding dues to Creditors other than micro Enterprises and Small Enterprises	234.437	223.685	125.784

Form 8:

Corporate identity number of the company	U18101MH2001PTC131895
Name of the company	MAJOR BRANDS (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	402-A Poonam Chambers, Dr. A B Road, Worli, Mumbai – 400018, Maharashtra, India
This form is for	Creation of charge
Type of charge	Others
Particular of charge holder	HDFC Bank Limited
Nature of instrument creating charge	Deed of Hypothecation dated 01/11/2010
Date of instrument Creating the charge	01/11/2010
Amount secured by the charge	Rs.100.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As Per Agreement and as Stipulated By Bank From Time To Time Terms of Repayment As Per Agreement and as Stipulated By Bank From Time To Time Margin As Per Agreement and as Stipulated By Bank From Time To Time Extent and Operation of the charge First Pari Passu Charge on Credit Card Receivables to the extend of Rs.100.000 millions
Short particulars of the property charged	All Present And Future Receivables Of The Borrower Upto Rs. 100.000 Millions Which May Now Arise From Transaction Which Are Paid Through Use Of Debit Or Credit Card Whether Visa, Master Card, Dinner's Club, American Express (And Whether Arising From Use Of Point Of Sale Terminals Provided By Bank Or Any Other Person Or Through Any Other Mechanism Including Traditional Swipe Machines Or Otherwise) Including All Receivables and Other Receivables That May Arise In Favour Of Borrower Upto A Maximum Of Rs. 100.000 Millions.

Trade References:

· MANGO

· ZARA

· THANKS

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.44.93
UK Pound	1	Rs.72.42
Euro	1	Rs.63.62

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
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	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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.