MIRA INFORM REPORT

Report Date :

11.03.2011

IDENTIFICATION DETAILS

Name :	JEANS KNIT PRIVATE LIMITED
Registered Office :	No.21, E1 2^nd Phase, Peenya Industrial Area, Peenya, Bangalore – 560058, Karnataka
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	20.09.2004
Com. Reg. No.:	08-34722
CIN No.: [Company Identification No.]	U18101KA2004PTC034722
TAN No.: [Tax Deduction & Collection Account No.]	BLRJ01916F
PAN No.: [Permanent Account No.]	AABCJ4513B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Readymade Garments.

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 2800000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The management has not filed the financials of the company with the Government Departments after the year 2007. However, trade relations are reported as fair. Business is active. Payment terms are not known. The company can be considered for business dealings with some caution.

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 (General Details)

Name :	Mr. Suresh
Designation :	H R Department
Contact No.:	91-80-42865000
Date :	09.03.2011

LOCATIONS

Registered Office/ Factory :	No. 21, E1 2^nd Phase, Peenya Industrial Area, Peenya, Bangalore - 560 058, Karnataka, India
Tel. No.:	91-80-28397511/ 28377732-39 / 42865000/42865100/42865200/28371174
Fax No.:	91-80-2371237/ 28373670/ 28398320/28371237
Email:	reception@fibresnfabrics.com jackie@fibresnfabrics.com ffi@fibresnfabrics.com
Website:	www.fibresnfabrics.com
Area :	Owned

DIRECTORS

AS ON 31.03.2007

Name :	Mr. Anupam S. Kothari
Designation :	Director
Address :	No. 18, 1^st Cross, Aswath Nagar, Dollors Colony, Bangalore –560080, India
Date of Birth/ Age:	22.06.1967
Date of Appointment :	20.09.2004
Name :	Mr. Kuria Kose
Designation :	Director
Address :	No.58 - 33/1, 4^th Cross, Chikka Audugodi, Brindavan Nagar, Tavarekere, Bangalore – 560081, India
Date of Birth/ Age:	15.06.1967
Date of Appointment :	20.09.2004
Name :	Mr. Jacqueline Antonette Thomas
Designation :	Alternate Director to Mr. Anupam Kothari
Address :	No.424, 8^th D Main, 4^th Cross, HRBR Layout, 1^st Blosk, Kalyan Nagar, Banaswadi, Bangalore – 560043, Karnataka, India
Date of Birth/ Age:	28.04.1973
Date of Appointment :	14.08.2006
E-mail:	jackie@fibresnfabrics.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 19.08.2006

Names of Shareholders	No. of Shares
Mr. Anupam S Kothari	10000
Mr. Jacqueline Antonette Thomas	1
Total	10001

As on 30.09.2006

Equity Share breakup (Percentage of total Equity)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Readymade Garments.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS (As on : 31.03.2007 )

Particulars	Unit	Actual Production
Readymade garments	Pcs	3111925

GENERAL INFORMATION

Suppliers :

· Apka Store

· Ingram Micro India Private Limited

· Patel Cars private limited

· Synergies

· Bhandar electronics

· Brother International Singapore Pte Limited, Singapore

· Taj Brush House

· Concrete Clinic

· Paxar Far east Limited, Hong Kong

· Ykk Corporation, Japan

· Sicom, Italy

· Isko Turkey

· Itochu Corporation, Japan

Customers :

· Wholesalers

· Retailers

· End Users

· The Gap, INC

· Well Yuen Garments

· Maco apparel Spa, Italy

· Liz Claiborne, USA

· Liz Claiborne, Canada Inc

· Lilly Pulitzer

· Guess Italia SRL, Italy

· G. Star Inc, USa

· Nishin transportation Shanghai

· Mexx Europe B.V Netherlands

· Ann Taylor USA

No. of Employees :

100 Approximately

Bankers :

· The Hong Kong and Shanghai Banking Corporation Limited, 7 M G Road, Post Box No.5627, Mahatma Gandhi Road, Bangalore – 560001, Karnataka, India

· HSBC Bank

· Citi bank

· Corporation Bank

· Abn Amro Bank

· ICICI Bank, M G Road, Bangalore

Facilities :

Secured Loans	31.03.2008 (Rs. In Millions)
Packing Credit Loan
Secured By
First charge by way of hypothecation of stocks and book debt on pari passu basis with other bankers.	178.710
Total	178.710

Unsecured Loans	31.03.2008 (Rs. In Millions)
Overdraft in current account	8.318
Total	8.318

Banking Relations :

----

Auditors :

Name :

Singhvi Dev and Unni

Chartered Accountants

Address :

SDU House 12, Race course Road, Madhavanagar, Bangalore – 560 001, Karnataka, India

Associates/Subsidiaries :

· Fibres and Fabrics International Private Limited

· Fibres and Fabrics International Private Limited

· Tintoria Astico SRL

CAPITAL STRUCTURE

As on 31.03.2007

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10001	Equity Shares	Rs.10/- each	Rs.0.100 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		0.100	0.100	0.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		703.862	430.075	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		703.962	430.175	0.100
LOAN FUNDS
1] Secured Loans		178.710	29.102	0.000
2] Unsecured Loans		8.318	16.094	0.000
TOTAL BORROWING		187.028	45.196	0.000
DEFERRED TAX LIABILITIES		0.000	9.740	0.000
TOTAL		890.990	485.111	0.100
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		477.519	424.860	114.517
Capital work-in-progress		10.123	5.019	32.527
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		12.920	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	273.869	362.211	0.000
	Sundry Debtors	254.523	303.643	0.000
	Cash & Bank Balances	55.150	15.342	8.019
	Other Current Assets	15.476	13.005	6.000
	Loans & Advances	117.655	88.657	0.995
Total Current Assets		716.673	782.858	15.014
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	312.998	718.522	174.000
	Provisions	13.348	9.274	1.868
Total Current Liabilities		326.346	727.796	175.868
Net Current Assets		390.327	55.062	[160.854]
MISCELLANEOUS EXPENSES		0.101	0.170	0.243
Profit & Loss A/C		0.000	0.000	13.668
TOTAL		890.990	485.111	0.100

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2007	31.03.2006
	SALES
		Sales	2919.655	1554.683
		Other Income	114.287	52.894
		TOTAL (A)	3033.942	1607.577
Less	EXPENSES
		Selling and Distribution Expenses	260.949	26.522
		Administrative Expenses	437.717	225.734
		Raw Material Consumed	1369.069	737.429
		Increase/(Decrease) in Finished Goods	6.392	[108.250]
		Preliminary Expenses	0.071	0.071
		Other Expenditure	331.082	204.495
		TOTAL (B)	2405.280	1086.001
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		628.662	521.576
Less	FINANCIAL EXPENSES (D)		4.364	3.923
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		624.298	517.653
Less/ Add	DEPRECIATION/ AMORTISATION (F)		133.158	63.915
	PROFIT BEFORE TAX (E-F) (G)		491.140	453.738
Less	TAX (H)		[22.099]	9.994
	PROFIT AFTER TAX (G-H) (I)		513.239	443.744
	EARNINGS IN FOREIGN CURRENCY		2934.966	1424.218
	IMPORTS		1392.009	1352.181
	Earnings Per Share (Rs.)		51318.76	--

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	16.92	27.60	NA
Net Profit Margin (PBT/Sales)	(%)	16.82	29.19	NA
Return on Total Assets (PBT/Total Assets}	(%)	40.35	37.41	NA
Return on Investment (ROI) (PBT/Networth)		0.69	1.05	NA
Debt Equity Ratio (Total Liability/Networth)		0.73	1.80	1758.68
Current Ratio (Current Asset/Current Liability)		2.20	1.08	0.09

LOCAL AGENCY FURTHER INFORMATION

TRADE REFERENCE:

• Maco Apparel SPA, Italy

fixed assets:

· Electrical Fittings

· Furniture and Fittings

· Office Equipments

· IT equipments

· Garment Production Machines

· Infrastructure

· Vehicle

· Land and Building

· Cut Room equipment

· Material Handling Equipment

Form 8:

Corporate identity number of the company	U18101KA2004PTC034722
Name of the company	JEANS KNIT PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	No.21, E1 2^nd Phase, Peenya Industrial Area, Peenya, Bangalore – 560058, Karnataka, India
This form is for	Modification of charge
Type of charge	· Book Debts · Movable Property · Others
Particular of charge holder	The Hong Kong and Shanghai Banking Corporation Limited 7, Post Box No. 5627, Mahatma Gandhi Road, Bangalore – 560001, Karnataka, India E-mail: nagendrap@hsbc.co.in
Nature of instrument creating charge	Third Supplemental Hypothecation Agreement for INR 1270.000 Millions
Date of instrument Creating the charge	29.02.2008
Amount secured by the charge	Rs.1270.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: Interests shall be payable by the company on the banking facilities as per Bank’s tariff, subject however that the Bank shall have the right to change the rate of interests after giving notice to the company. Terms of repayment: In consideration of Banking facilities sanctioned / to be sanctioned by the bank to the company, the company has hypothecated and charged to the bank by way of first charge as a continuing security, the assets mentioned in the third supplemental hypothecation agreement to secure the repayment of the advance together with interest cost and all other charges. Margin: The company shall maintain such margin as may be specified by the bank from time to time. Extent and Operation of the charge: In case the company fails to fulfill its obligation under the agreement, the bank shall be entitled to take possession of the hypothecated properties and sell them by public auction or private contract and utilize the proceeds in full or part settlement of its claims.
Short particulars of the property charged	Third supplemental charge over the company current assets.

Corporate identity number of the company	U18101KA2004PTC034722
Name of the company	JEANS KNIT PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	No.21, E1 2^nd Phase, Peenya Industrial Area, Peenya, Bangalore – 560058, Karnataka, India
This form is for	Modification of charge
Type of charge	· Book Debts · Movable Property · All Current Assets
Particular of charge holder	The Hong Kong and Shanghai Banking Corporation Limited 7, Post Box No.5627, Mahatma Gandhi Road, Bangalore – 560001, Karnataka, India negendrap@hsbc.co.in
Nature of instrument creating charge	Third Supplemental Hypothecation Agreement for INR 1270.000 Millions
Date of instrument Creating the charge	22.02.2008
Amount secured by the charge	Rs.1270.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: Interests shall be payable by the company on the banking facilities as per Bank’s tariff, subject however that the Bank shall have the right to change the rate of interests after giving notice to the company.
Particulars of the property charged	Third Supplemental charge over the company’s current assets
Particulars of the present modification	At the request of the company HSBC has agreed to increase the maximum limit of the said facilities from Rs.820.000 Millions to Rs.1270.000 Millions in the manner and on the conditions hereinafter contained.

Contingent Liabilities:-

· Bank guarantee to custom authorities Rs. 7.100 millions (Previous Year Rs. 4.725 millions).

· Estimated amount of Contracts remaining to be executed on capital account and not provided for (Net of advances) Rs. 10.123 millions (Previous year Rs. 5.019 millions

As per Website:

Celebrity Fashions inks pact with Jeans Knit for Plant Sale

Chennai, March 11 Garment exporter Celebrity Fashions has entered into an agreement with Bangalore-based Jeans Knit Private limited, a subsidiary of Fibre and Fabrics International Private limited, for the sale of its Irrungattukottai plant, Jwala. The deal has been struck for a gross consideration of Rs 425.000 Millions and is subject to approval from the shareholders and bankers of Celebrity Fashions and SIPCOT authorities.

The closing date of the transaction is likely to be on March 31. While Avendus Capital of Mumbai is representing Celebrity Fashions (CFL), Yes Bank is representing Jeans Knit for the deal, says a press release from CFL.

The Jwala plant commenced its commercial operations in January 2007 and has an annual capacity of 2 million pieces. The plant employs around 1,750 people and Jeans Knit is said to take over the plant with all employees on a going concern basis.

Exports hit

CFL intends to settle the term loan borrowed specifically for the plant and a part of the working capital loan out of the sale proceeds. The Rs350.000 Millions Celebrity Fashions with a domestic brand under the name Indian Terrain, claims that dollar depreciation and recession in the US market has hit its export division at large and the division has been reporting losses for the past six quarters.

With experience in supplying to international brands, CFL sees retail expansion as a turnaround strategy for its business, the release adds.

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. 45.11
UK Pound	1	Rs. 72.91
Euro	1	Rs. 62.56

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
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	Yes
--LISTED	YES/NO	No
--OTHER MERIT FACTORS	YES/NO	Yes
TOTAL		28

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.