MIRA INFORM REPORT

Report Date :

29.06.2011

IDENTIFICATION DETAILS

Name :	CENTURY KNITTERS INDIA LIMITED
Registered Office :	Campa Cola Road, Near Gurudwara Dhandri Kalan, Ludhiana – 141010, Punjab
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	31.01.1997
Com. Reg. No.:	16-019389
Capital Investment / Paid-up Capital :	Rs.50.000 millions
CIN No.: [Company Identification No.]	U17219PB1997PLC019389
TAN No.: [Tax Deduction & Collection Account No.]	JLDC00962D
PAN No.: [Permanent Account No.]	AABCC7091B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Knitted Cloth, Fabrics and Readymade Garments.
No. of Employees :	1000 - Approximately (Office – 60. and Factory – 940)

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 500000
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 for small 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. Rajesh Dhanda
Designation :	Managing Director
Contact No.:	91-9815813955
Date :	28.06.2011

LOCATIONS

Registered Office/ Factory :	Campa Cola Road, Near Gurudwara Dhandri Kalan, Ludhiana – 141010, Punjab, India
Tel. No.:	91-161-5024234/ 5024235
Mobile No.:	91-9815813955 (Mr. Rajesh Dhanda)
Fax No.:	91-161-5016235
E-Mail :	rajesh_dhanda19@yahoo.com rajnish_ca@yahoo.com vinay_ca1979@yahoo.com
Website :	http://www.centuryknitters.com
Area :	4000 Sq. Yard.
Location :	Owned

DIRECTORS

(AS ON 30.09.2010)

Name :	Mr. Rajesh Dhanda
Designation :	Director
Address :	H.No.19-A, Block – A, Ludhiana – 141 001, Punjab, India
Date of Birth/Age :	17.01.1968
Qualification :	BA
Experience :	22 years
Date of Appointment :	05.01.2000
Name :	Mrs. Seema Dhanda
Designation :	Director
Address :	H.No.19-A, Block – A, Ludhiana – 141 001, Punjab, India
Date of Birth/Age :	13.09.1971
Qualification :	BA
Experience :	10 years
Date of Appointment :	05.01.2000
Name :	Mr. Vijay Kumar Magoo
Designation :	Director
Address :	2, Green Park, Civil Lines, Ludhiana – 141 001, Punjab, India
Date of Birth/Age :	04.04.1944
Qualification :	BA
Experience :	43 years
Date of Appointment :	15.11.2003

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2009)

Names of Shareholders	No. of Shares
Simmi Dhanda	4000
R.P. Dhanda	4000
Gagan Kapila	1700
Ashish Kapila	10000
Rajan Dhanda	10000
Kantu Ram	5000
Krishan Kumar	4800
Mahender Kumar	4700
Ravi Gupta	1800
Bhagirathi Singh	1900
Dalip Singh	4000
Classic International Limited, India	30000

(AS ON 30.09.2010)

Category	Percentage
Directors or relatives of directors	94.00
Other top fifty shareholders	6.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Knitted Cloth, Fabrics and Readymade Garments.
Products :	· Men's T-Shirts · Ladies T-Shirts · Kids T-Shirts
Exports :
Products :	T-Shirts
Countries :	· Europe · USA · UK · South Africa
Terms :
Selling :	L/C, Cash and Credit (30 days)
Purchasing :	Cash and Credit (30 days)

GENERAL INFORMATION

Suppliers :

· A and S Cargo

· Alpex Exports (Private) Limited

· Amit Sales Corporation

· Brij Kailash Traders

· Band Box Electronics

· Caravan Roadways Limited

· Dhir Fabrics

· Dowell Knitters

· Engg. Enterprises

· Golden Processors

· Harish Yarn Company

· K C Engineers

· Indian Overseas

· H K Steel Industries

· Jindal Zippers

· Kaur Sain Spinners Limited

· Mahavir Steel

· Mitali Enterprises

· Mukesh Udyog Limited

· Shiv Tex Packaging

Customers :

Wholesalers and End Users

· Ankur Traders

· Pooja International

· Snjeev Knitwears

· Shri Hosiery Factory

· Shree Anand Exports

· Seamaster Shipping and Logistics New

· Sidhivinayak Printers

· Omex Limited

· National Scientific Dyers

No. of Employees :

1000 - Approximately (Office – 60. and Factory – 940)

Bankers :

· Allahabad Bank,

International Cum Industrial Finance Branch, Cheema Chowk, Ludhiana – 141 003, Punjab, India

· Central Bank of India,

Industrial Area, Ludhiana, Punjab, India

· ING Vysya Bank

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
Allahabad Bank MTL C/C	120.258	0.000
Allahabad Bank MTL L/C	20.000	0.000
Kotak Mahindra Prime Limited	0.031	0.000
Central Bank of India MTL	0.000	0.875
Allahabad Bank MTL A/c	2.511	1.540
Allahabad Bank ADV. 20172088752	83.150	80.000
Allahabad Bank O/D 50005234604	0.000	20.033
Allahabad Bank P/C	11.898	11.800
Total	237.848	114.248

Banking Relations :	--
Auditors :
Name :	Dhand Harish and Associates Chartered Accountants
Address :	971/ 11-A, Rajpura Road, Civil Lines, Ludhiana – 141 001, Punjab, India

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
5000000	Equity Shares	Rs.10/- each	Rs.50.000 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		50.000	3.498	3.498
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		80.799	2.624	1.554
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		130.799	6.122	5.052
LOAN FUNDS
1] Secured Loans		237.848	114.248	80.647
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		237.848	114.248	80.647
DEFERRED TAX LIABILITIES		0.000	0.248	0.118
TOTAL		368.647	120.618	85.817
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		26.731	16.967	12.505
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	168.735	30.839	7.008
	Sundry Debtors	196.720	141.058	121.738
	Cash & Bank Balances	25.286	38.064	14.534
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	42.490	23.828	17.941
Total Current Assets		433.231	233.789	161.221
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	46.329	30.716	83.234
	Other Current Liabilities	44.986	99.422	4.675
	Provisions	0.000	0.000	0.000
Total Current Liabilities		91.315	130.138	87.909
Net Current Assets		341.916	103.651	73.312
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		368.647	120.618	85.817

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	898.898	620.111	391.368
		Other Income	1.024	0.693	20.375
		TOTAL (A)	899.922	620.804	411.743
Less	EXPENSES
		Raw material consumed	699.304	554.775	388.190
		Consumption of stores and spare parts	0.579	0.000	6.408
		(Increase) or Decrease in Finished Goods, Work in Progress	0.750	(23.832)	0.000
		Salaries, wages and bonus	8.313	8.020	9.852
		Payment of auditors	0.008	0.008	0.012
		Insurance expenses	0.363	0.324	0.024
		Power and fuel	1.449	0.788	1.420
		Other Expenditure	174.928	69.717	3.322
		TOTAL (B)	885.694	609.800	409.228
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		14.228	11.004	2.515
Less	FINANCIAL EXPENSES (D)		9.773	8.512	1.049
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.455	2.492	1.466
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.680	0.845	0.656
	PROFIT BEFORE TAX (E-F) (G)		1.775	1.647	0.810
Less	TAX (H)		0.500	0.577	0.235
	PROFIT AFTER TAX (G-H) (I)		1.275	1.070	0.575
	Earnings Per Share (Rs.)		0.26	3.06	--

Particulars	31.03.2011
Sales Turnover (Approximately)	1500.000

Expected Sales (2011-12): Rs.2000.000 Millions

The above information has been parted by Mr. Rajesh Dhanda.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.14	0.17	0.14
Net Profit Margin (PBT/Sales)	(%)	0.20	0.27	0.21
Return on Total Assets (PBT/Total Assets}	(%)	0.39	0.66	0.47
Return on Investment (ROI) (PBT/Networth)		0.01	0.27	0.16
Debt Equity Ratio (Total Liability/Networth)		2.52	39.92	33.36
Current Ratio (Current Asset/Current Liability)		4.74	1.80	1.83

LOCAL AGENCY FURTHER INFORMATION

FORM 8:

This form is for

Modification of charge

Charge identification number of the modified

10069984

Corporate identity number of the company

U17219PB1997PLC019389

Name of the company

CENTURY KNITTERS INDIA LIMITED

Address of the registered office or of the principal place of business in India of the company

Campa Cola Road, Near Gurudwara Dhandri Kalan, Ludhiana – 141 010, Punjab, India

Type of charge

Immovable property

Book Debts

Others (All tangible machineries plant movable assets etc)

Particular of charge holder

Allahabad Bank,

International Cum Industrial Finance Branch, Cheema Chowk, Ludhiana – 141 003, Punjab, India

E-Mail: albiifbldh@yahoo.co.in

Nature of description of the instrument creating or modifying the charge

Hypothecation Agreement

Supplemental Letter of Mortgagor Confirming Deposit of Title Deeds

Date of instrument Creating the charge

25.03.2009

Amount secured by the charge

Rs.98.500 millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest:

Foreign Bill Purchased Rs.83.200 millions Interest @ 2.5% p.a. below PLR upto 90 days and beyond 90 days to 180 days, 2% below Allahabad PLR with monthly rests

Packing Credit Rs.11.800 millions 2% below Allahabad PLR with monthly rests

Term Loan Rs.3.500 millions at PLR with monthly rests

Terms of Repayment:

Foreign Bill purchased and packing credit Limit Repayable On Demand

Term Loan in 68 Monthly installments of Rs.0.051 million each

Margin:

25%

Extent and Operation of the charge:

100%

Short particulars of the property charged

A. All tangible movable machineries, plant etc

B. The whole of the company's movable goods and assets both present and future, etc

C. All present and future book debts, etc

Extension of Equitable Mortgage on the property of the company situated at Bagga Kalan Ludhiana

Particulars of the present modification

Modification seek to enhance the credit facilities from Rs.80.000 millions to Rs.98.500 millions.

	(Amount in millions)
a) Foreign Bill purchased	83.200
b) Packing Credit	11.800
c) Term Loan	3.500
Total	98.500

FIXED ASSETS:

· Machinery

· Scooter

· Weighing Scale

· Telephones

· Ceasefire

· Computer

· Vacuum Cleaners

· Generator

· Electricity Fitting

· Furniture and Fixture

· Land

· Water Cooler

· Submersible Pump

· Motor Cycle

· CC TV Camera

· Building under construction

· Air Conditioner

· Telephone Exchange

· Car

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.45.05
UK Pound	1	Rs.71.92
Euro	1	Rs.64.34

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	3
--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		29

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.