MIRA INFORM REPORT

Report Date :

30.06.2011

IDENTIFICATION DETAILS

Name :	PURPLE CREATIONS PRIVATE LIMITED
Registered Office :	Unit No.11, Ground Floor, Harichand Mill Compound, L.B.S. Marg, Vikhroli (West), Mumbai – 400079, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	28.08.1995
Com. Reg. No.:	11-92238
Capital Investment / Paid-up Capital :	Rs.10.000 Millions
CIN No.: [Company Identification No.]	U18100MH1995PTC092238
TAN No.: [Tax Deduction & Collection Account No.]	MUMP13391A
PAN No.: [Permanent Account No.]	AAACP4704B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of Readymade Garments of different kinds, Shapes, Sizes etc.
No. of Employees :	Not Available

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 130000
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	A1	A1

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

LOCATIONS

Registered Office :	Unit No.11, Ground Floor, Harichand Mill Compound, L.B.S. Marg, Vikhroli (West), Mumbai – 400079, Maharashtra, India
E-Mail :	purple@vsnl.com

DIRECTORS

(AS ON 30.09.2010)

Name :	Mr. Pankaj Nagji Vira
Designation :	Director
Address :	8 Ramnik Villa Uday Cinema Lane, Ghatkopar (west), Mumbai – 400086, Maharashtra, India
Date of Birth/Age :	16.02.1960
Date of Appointment :	28.08.1995
Name :	Mr. Deepak Nagji Vira
Designation :	Director
Address :	404, Gayatri Dham, M G Road, Derasar Lane, Ghatkopar (East), Mumbai – 400077, Maharashtra, India
Date of Birth/Age :	15.03.1964
Date of Appointment :	28.08.1995
Name :	Mr. Nagji Kheraj Vira
Designation :	Director
Address :	8 Ramnik Villa Uday Cinema Lane, Ghatkopar (west), Mumbai – 400086, Maharashtra, India
Date of Birth/Age :	29.12.1937
Date of Appointment :	28.08.1995

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2010)

Names of Shareholders	No. of Shares (Equity)
Nagji Kheraj Vira	290400
Pankaj Nagji Vira	795900
Deepak Nagji Vira	795900
Chanchalben Nagji Vira	17400
Nagji Kheraj Vira (HUF)	20000
Ketki Pankaj Vira	19900
Pankaj Nagji Vira (HUF)	15000
Pankaj Nagji Vira as Guardian of Viral Pankaj Vira	2500
Meena Deepak Vira	19900
Deepak Nagji Vira (HUF)	17500
Nagji Khera Vira	100
Pankaj Nagji Vira	100
Deepak Nagji Vira	100
Chanchalben Vira	100
Ketki Vira	100
Meena Vira	100
Total	1995000

Names of Shareholders	No. of Shares (Preference)
Nagji Kheraj Vira	500
Total	500

(AS ON 30.09.2010)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Readymade Garments of different kinds, Shapes, Sizes etc.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Union Bank of India

Silver Court, M g Road, Ghatkopar (East), Mumbai – 400077, Maharashtra, India

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
Cash Credit – Union Bank of India (Secured by Hypothecation of stock, Book Debts and Personal Guarantee of Directors)	30.395	21.444
Term Loan from Union Bank of India (secured by Hypothecation of Existing and Proposed imported machinery, Immovable Property of director as collateral security and personal guarantee of directors)	64.560	--
Union Miles Loan for Lenea (Secured by Hypothecation of Lenea Car and Personal Guarantee of directors)	0.682	--
Union Miles Loan for Wagon –R (Secured by Hypothecation of Wagon-R Car and Personal Guarantee of directors)	0.323	--
Total	95.960	21.444
Unsecured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
From Directors	39.264	9.577
From Others	31.609	35.992
Total	70.873	45.569

Banking Relations :	--
Auditors :
Name :	Gala and Gala Chartered Accountant
Address :	409-413, Navratan, 120-122, P D Mello Road, Carnac Bridge Corner, Mumbai – 400009, Maharashtra, India

CAPITAL STRUCTURE

(AS ON 30.09.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
1995000	Equity Share	Rs.10/- each	Rs.19.950 Millions
500	Preference Shares	Rs.100/- each	Rs.0.050 Millions
	Total		Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1995000	Equity Share	Rs.10/- each	Rs.19.950 Millions
500	Preference Shares	Rs.100/- each	Rs.0.050 Millions
	Total		Rs.20.000 Millions

(AS ON 31.03.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
995000	Equity Share	Rs.10/- each	Rs.9.950 Millions
500	6% Non-Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.0.050 Millions
	Total		Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
995000	Equity Share	Rs.10/- each	Rs.9.950 Millions
500	Preference Shares	Rs.100/- each	Rs.0.050 Millions
	Total		Rs.10.000 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		10.000	4.725	4.725
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		21.292	17.706	13.925
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		31.292	22.431	18.650
LOAN FUNDS
1] Secured Loans		95.960	21.444	19.675
2] Unsecured Loans		70.873	45.569	40.277
TOTAL BORROWING		166.833	67.013	59.952
DEFERRED TAX LIABILITIES		4.966	3.972	4.129
TOTAL		203.091	93.416	82.731
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		44.417	29.991	28.329
Capital work-in-progress		112.675	0.000	0.000
INVESTMENT		0.700	0.700	0.700
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	20.978	19.889	25.390
	Sundry Debtors	34.104	32.743	33.693
	Cash & Bank Balances	18.418	1.459	0.741
	Other Current Assets	0.000	0.000	0.027
	Loans & Advances	36.755	20.888	9.505
Total Current Assets		110.255	74.979	69.356
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	58.849	6.321	11.511
	Other Current Liabilities	1.228	1.487	1.408
	Provisions	4.879	4.446	2.735
Total Current Liabilities		64.956	12.254	15.654
Net Current Assets		42.299	62.725	53.702
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		203.091	93.416	82.731

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	136.163	115.807	94.921
		Other Income	0.398	0.256	0.029
		TOTAL	136.561	116.063	94.950
Less	EXPENSES
		TOTAL	131.093	110.623	89.561
	PROFIT BEFORE TAX		5.468	5.440	5.389
Less	TAX		1.840	1.659	1.908
	PROFIT AFTER TAX		3.628	3.781	3.481
Less	FBT/ TAX OF EARLIER YEARS		0.043	(0.001)	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		17.706	13.924	10.443
	BALANCE CARRIED TO THE B/S		21.291	17.706	13.924
	IMPORTS VALUE		70.211	2.876	Nil
	Earnings Per Share (Rs.)		4.41	8.00	7.37

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.66	3.26	3.67
Net Profit Margin (PBT/Sales)	(%)	4.02	4.70	5.68
Return on Total Assets (PBT/Total Assets}	(%)	3.54	5.18	5.52
Return on Investment (ROI) (PBT/Networth)		0.17	0.24	0.29
Debt Equity Ratio (Total Liability/Networth)		7.41	3.53	4.05
Current Ratio (Current Asset/Current Liability)		1.70	6.12	4.43

LOCAL AGENCY FURTHER INFORMATION

NOTE:

The Registered office of the company has been shifted from B-123, Ghatkopar Industrial Estate, Agra Road, Ghatkopar (West), Mumbai – 400086, Maharashtra, India, to the present address w.e.f. 29.01.2007.

OPERATIONS:

The company’s working results have been improving. Turnover of company has increased by 17.58%. Profit after tax has almost remained constant. Directors are hopeful of achieving still better results in the year to com4e as the unit at Baramati has started working full fledge.

FORM 8:

Corporate identity number of the company	U18100MH1995PTC092238
Name of the company	PURPLE CREATIONS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Unit No. 11, Ground Floor, Harichand Mill Coumpound, L.B.S. Marg, Vikhroli –West, Mumbai – 400079, Maharashtra, India purple@vsnl.com
This form is for	Modification of charge
Type of charge	Immovable property Book debts Movable property (not being pledge) Current and Fixed Assets
Particular of charge holder	Union Bank of India Silver Court, M G Road, Ghatkopar (East), Mumbai – 400077, Maharashtra, India info@ca-adlalwani.com
Nature of instrument creating charge	1.The supplementary agreement to hypothecation agreement of goods and debts 2.General term loan agreement 3.General term loan agreement 4.Bank letter for overall limit (All the above agreement constitute a single charge)
Date of instrument Creating the charge	19.05.2010
Amount secured by the charge	Rs.170.600 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: As stipulated by bank from time to time Terms of Repayment: As stipulated by bank from time to time Margin: As stipulated by bank from time to time Extent and Operation of the charge: First Charge (Present and Future) = Total Limit Rs.170.600 Millions (Cash Credit = Rs.50.000 Millions, Letter of guarantee = Rs.2.500 Millions, Term Loan-1 = Rs.78.600 Millions, Term Loan II = Rs.39.500 Millions) and/or as stipulated by bank from time to time Others: as stipulated by bank from time to time and as per agreement attached and as per sanction letter of HTE bank
Particulars of the property charged	First Charge (Present and Future) = Hypothecation of all stock/goods/inventories kept at borrower place or in transit or wherever else including goods brought under L.C. Hypothecation of all book debts and receivables of the company Hypothecation of all current, movable and fixed assets of the company EMG of all that piece or parcel of land known as Sub-Plot Nos 29,30,31,32,33,48 and 49 out of Plot No E-1/2 in the Baramati MIDC Industrial Area containing by admeasurements 199290 sq ft within the Village Limit of Tandulwadi and Wanjaradi and out side the limits of Baramati Municipal Council, Tal Baramati, Dist Pune within the Sub-Registration District Baramati and Registration District Pune together with building and structures constructed thereon
Particulars of the present modification	By this modification limit remain same to Rs.170.600 Millions (Cash Credit = Rs.50.000 Millions, Letter of Guarantee = Rs.2.500 Millions, Term Loan-1= Rs.78.600 Millions, Term Loan II = Rs.39.500 Millions), securities are continued as given by original charge as well as by modifications by this modification Hypothecation is extended to Rs.170.600 Millions, Terms and Conditions as per agreement attached and as per sanction letter of the bank.

FIXED ASSETS:

· Office Equipments

· Plant and Machinery

· Furniture and Fixtures

· Computers

· Vehicles

· Electrification

· Reva Car

· Delivery Van

· Computer Software

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	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
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	NO
--AFFILIATION	YES/NO	NO
--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.