MIRA INFORM REPORT

Report Date :

16.03.2011

IDENTIFICATION DETAILS

Name :	POPPYS KNITWEAR PRIVATE LIMITED
Registered Office :	33 M.P., Nagar, Kongu Nagar Extension, Coimbatore, Tirupur – 641607, Tamilnadu
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	18.06.2003
Com. Reg. No.:	181-10632
CIN No.: [Company Identification No.]	U01730TZ2003PTC010632
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
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 2008. 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

Name :	Mr. Arunachalam
Designation :	Manager
Date :	15.03.2011

LOCATIONS

Registered Office/ Factory :	33 M.P., Nagar, Kongu Nagar Extension, Coimbatore, Tirupur – 641607, Tamilnadu, India
Tel. No.:	91-421-2221144 / 55 / 166
Fax No.:	91-421-2221133
E-Mail :	poppys@dataone.in mselvakumar@poppysknitwear.com
Website :	http://www.poppysonline.com
Area :	10000 sq.fts
Location :	Owned

DIRECTORS

As on : 28.09.2008

Name :	Mr. A. Sakthivel
Designation :	Director
Address :	6, kumaravel Colony, Tirupur, Coimbatore – 6416 07, Tamli Nadu
Date of Birth/Age :	12.11.1947
Date of Appointment :	18.06.2003
Name :	Mr. A. Sivakumar
Designation :	Director
Address :	9, M. P. Nagar, Tirupur, Coimbatore – 641607, Tamil Nadu
Date of Birth/Age :	12.04.1952
Date of Appointment :	28.06.2003
Name :	Mr. S. K. Hari Arumugam
Designation :	Director
Address :	9, M. P. Nagar, Tirupur, Coimbatore – 641607, Tamil Nadu
Date of Birth/Age :	12.06.1979
Date of Appointment :	18.06.2003
Name :	Mr. S. Vignesh
Designation :	Director
Address :	6, kumaravel Colony, Tirupur, Coimbatore – 6416 07, Tamli Nadu
Date of Birth/Age :	19.06.1982
Date of Appointment :	18.06.2003
Name :	Mr. S. Om Saravanan
Designation :	Director
Address :	9, M. P. Nagar, Tirupur, Coimbatore – 641607, Tamil Nadu
Date of Birth/Age :	31.05.1983
Date of Appointment :	18.06.2003

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 28.09.2008

Names of Shareholders		No. of Shares
Mr. S. Vignesh Address : 6, kumaravel Colony, Tirupur, Coimbatore – 6416 07, Tamli Nadu		132000
Mr. S. Om Saravanan Address : 9, M. P. Nagar, Tirupur, Coimbatore – 641607, Tamil Nadu		90000
Mr. S. Selvieaswari Address : 6, kumaravel Colony, Tirupur, Coimbatore – 6416 07, Tamli Nadu		18000
Mr. S. Venkatalakshmi Address : 9, M. P. Nagar, Tirupur, Coimbatore – 641607, Tamil Nadu		18000
Mr. A. Sakthivel Address : 6, kumaravel Colony, Tirupur, Coimbatore – 6416 07, Tamli Nadu		150000
Mr. A. Sivakumar Address : 9, M. P. Nagar, Tirupur, Coimbatore – 641607, Tamil Nadu		102000
Mr. S. K. Hari Arumugam Address : 9, M. P. Nagar, Tirupur, Coimbatore – 641607, Tamil Nadu		90000
	Total	600000

As On 28.09.2008

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Readymade Garments.
Products :	Means wear Women’s wear Children’s wear Sweaters Inner wear
Exports :
Products :	Readymade Garments
Countries :	UK USA Germany
Imports :
Products :	Accessories
Countries :	China Taiwan
Terms :
Selling :	L/C, Cash, Credit
Purchasing :	L/C, Cash, Credit

GENERAL INFORMATION

Customers :

• End Users

No. of Employees :

800 (30 – In Office + 770 – In Factory)

Bankers :

• State Bank of India – Branch 24, Stanes Road, 4^th Street, Tirupur – 641602, Tamilnadu

Facilities :

Secured Loans	31.03.2008 (Rs. In Millions)
Working Capital Loan From Banks	553.052
Term Loans From Banks	358.173
TOTAL	911.225

Banking Relations :	--
Name :	AL TN and Company Chartered Accountants
Address :	Sabari Towers, KRR Layout Main Station, Mangalam Road, Tirupur – 641 604, Tamil Nadu
Associates/Subsidiaries :	· Poppys Garments Line of Business: Manufacturer of Readymade Garments.

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.100/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
600000	Equity Shares	Rs.100/- each	Rs.60.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		60.000	30.000	30.000
2] Share Application Money		46.426	58.362	66.096
3] Reserves & Surplus		186.181	116.970	71.175
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		292.607	205.332	167.271
LOAN FUNDS
1] Secured Loans		911.225	564.951	304.003
2] Unsecured Loans		0.000	0.000	0.500
TOTAL BORROWING		911.225	564.951	304.503
DEFERRED TAX LIABILITIES		90.146	74.290	44.068
TOTAL		1293.978	844.573	515.842
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		648.662	520.822	375.630
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		31.090	102.526	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	142.879	92.677	92.677
	Sundry Debtors	359.752	146.327	146.327
	Cash & Bank Balances	50.767	15.643	15.643
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	345.056	114.321	114.321
Total Current Assets		898.454	449.717	368.968
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	266.638	213.185	206.026
	Other Current Liabilities	7.050	11.060	11.670
	Provisions	10.540	4.247	11.060
Total Current Liabilities		284.228	228.492	228.756
Net Current Assets		614.226	221.225	140.212
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1293.978	844.573	515.842

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2008	31.03.2007	31.03.2006
	SALES
		Income	2479.438	2252.215	1939.804
		Other Income			0.000
		TOTAL (A)	2479.438	2252.215	1939.804
Less	EXPENSES
		Office Expenses
		Administrative Expenses	2062.887	1960.026	1732.044
		Advertising Expenses
		TOTAL (B)	2062.887	1960.026	1732.044
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		416.551	292.189	207.760
Less	FINANCIAL EXPENSES (D)		114.881	78.302	48.625
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		301.670	213.887	159.135
Less/ Add	DEPRECIATION/ AMORTISATION (F)		164.246	123.816	67.789
	PROFIT BEFORE TAX (E-F) (G)		137.424	90.071	91.346
Less	TAX (I)		38.213	44.276	31.958
	PROFIT AFTER TAX (G-I) (J)		99.211	45.795	59.388
	IMPORTS
		Raw Materials	43.100	0.000	3.653
		Accessories	0.000	0.000	34.980
		Capital Goods	0.000	0.000	69.572
	TOTAL IMPORTS		43.100	0.000	108.205
	Earnings Per Share (Rs.)		165.35	152.65	197.23

Particulars	31.03.2010	31.03.2009
Sales Turnover	1580.000 (Recession)	1190.000

Expected Sales (2010-2011) : Rs. 2000.000 Millions

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	4.00	2.03	3.06
Net Profit Margin (PBT/Sales)	(%)	5.54	3.99	4.70
Return on Total Assets (PBT/Total Assets}	(%)	8.88	9.28	12.26
Return on Investment (ROI) (PBT/Networth)		0.46	0.43	0.54
Debt Equity Ratio (Total Liability/Networth)		4.08	3.86	3.18
Current Ratio (Current Asset/Current Liability)		3.16	1.96	1.61

LOCAL AGENCY FURTHER INFORMATION

Form : 8

Name of the company	POPPY KNITWEAR PRIVATE LIMITED
Presented By	Poppys Knitwear Private Limited Indusind Bank Limited, Coimbatore
1) Date and description of instrument creating the change	Agreement for hypothecation of stocks, book debts, and the receivables dated 13.02.2004
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 20.000 millions (short term loan)
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Subservient charge on the current assets of company being stocks of raw materials, stock in process , finished goods and other current assets held At factory remises at 33 MP Nagar, Tirupur and various other places of business / manufacture.
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of interest: As may be notified by the bank from time to time
5) Name and Address and description of the person entitled to the charge.	Indusind Bank Limited, Coimbatore

Corporation identity number or foreign company registrations number of the company	U01730TZ2003PTC010632
Name of the company	POPPY’S KNITWEAR PRIVATE LIMITED
Address	33 M P Nagar, Tirupur, Coimbatore District – 641 607, Tamil Nadu , India
This Form is for	Creation of charge
Type of Charges	Others
Particular of the charge holder	State Bank of India 24, Stanes Road, 4^th Street, Tirupur – 641602, Tamilnadu Email ID : joshi.mozhoor@sbi.co.in
Nature or description of the instrument creating charge	From C-4 – Deed of Guarantee for overall limit – Corporate Guarantee in favour of Poppys Hotel Private Limited for a Sum of Rs. 380.000 millions
Date of the instrument creating charge	02.07.2010
Amount Secure by the charge	Rs. 380.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of interest: NIL Terms of repayment: NIL Margin: NIL Extent and operation of the charge Corporate Guarantee in favour of Poppys Hotel Private Limited. Others : NIL
Shorts particulars of the Property charged	Corporate Guarantee issued by Poppys Knitwear Private Limited In favour of Poppys Hotel Private Limited.

Fixed Assets:

• Building
• Building Construction [WIP]
• Land
• Machinery
• Electrical and Fittings
• Vehicle [Two Wheelers]
• Vehicle [Four Wheelers]
• Computer
• Office Equipments
• Furniture and Fittings
• Pipe Fittings
• Cycles
• Bullock Car
• Machinery [in transit]
• Wind Turbine Generator

Trade References:

o East man Exports

AS PER WEBSITE DETAILS

HISTORY:

The Poppys Group of companies, with an annual turnover of US$70 million, is the brain child of our Chairman Mr. A. Sakthivel. Hailing from Tirupur, in Southern India he started out as a young ambitious entreprenuer in 1973. Through sheer hard work, dedication and innovative trade practices he has ensured that today, Subject is one of the leading knitwear exporters of India. Mr Sakthivel's endeavour has placed Tirupur as a leading player in the Knitwear Industry.

Poppys success would not have beeen possible without the unstinting commitment and encouragement of Mr A Sivakumar the Managing Director.His efforts have been vital to the development of the company as one of the best administered companies in Tirupur.

Subject has opened up global markets for it's products. It exports to over 50 countries worldwide and is a trusted supplier to global brands like Hanes, Ralph Lauren, Harley Davidson, Caterpillar, M and M, Domino's Pizza etc. Poppy also has an enviable product range that includes knitted and woven wear for men, women and children.

Subject makes such world class products possible by integrating cutting edge technology, infrastructure and global best practices in design, manufacture and quality control. The knitwear division is ably supported by equally well equipped and world class labeling, tapes and packaging units.

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. 45.27
UK Pound	1	Rs. 72.95
Euro	1	Rs. 63.08

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
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	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.