MIRA INFORM REPORT

Report Date :

09.05.2011

IDENTIFICATION DETAILS

Name :	PARIKH FABRICS PRIVATE LIMITED
Registered Office :	H. No. 4-3-338, RK Estate, Bank Street, Sultan Bazar, Hyderabad – 500095, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	04.06.2002
Com. Reg. No.:	01-039072
Capital Investment / Paid-up Capital :	Rs.125.000 millions
CIN No.: [Company Identification No.]	U17219AP2002PTC039072
TAN No.: [Tax Deduction & Collection Account No.]	HYDP02488D
PAN No.: [Permanent Account No.]	AACCP5359E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers of Men’s , Ladies And Kids Socks [Hosiery Goods].
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B [30]

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

Maximum Credit Limit :	USD 1160000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
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 :	H. No. 4-3-338, RK Estate, Bank Street, Sultan Bazar, Hyderabad – 500095, Andhra Pradesh, India
Tel. No.:	91-40-24755359
Fax No.:	91-40-24756706
E-Mail :	Info@parikhfabrics.com Ankitco59@rediffmail.com
Website :	http://www.parikhfabrics.com
Factory 1 :	Plot No.: 37 & 38, Apparel Export Park, Gundlapochampally, Medchal Mandal, Ranga Reddy District – 500014, Andhra Pradesh, INDIA.
Tel. No.:	91-40-2379 2139 / 40
Fax No.:	91-40-2379 2141
Factory 2 :	APIIC Industrial Park, Mambattu Village, TADA Mandal, Nellore District, Andhra Pradesh, India
Area :	5 acres

DIRECTORS

As on 15.07.2010

Name :	Mr. Nikhil Brij Parikh
Designation :	Managing Director
Address :	4-7-106, Esamia Bazar, Hyderabad - 500027, Andhra Pradesh, India
Date of Birth/Age :	16.03.1981
Date of Appointment :	04.06.2002
DIN :	00097298
Name :	Mr. Ankit Brij Parikh
Designation :	Director
Address :	4-7-106, Esamia Bazar, Hyderabad - 500027, Andhra Pradesh, India
Date of Birth/Age :	05.11.1976
Date of Appointment :	04.06.2002
DIN :	00093626
Name :	Ms. Rita Brij Parikh
Designation :	Director
Address :	4-7-106, Esamia Bazar, Hyderabad - 500027, Andhra Pradesh, India
Date of Birth/Age :	14.12.1951
Date of Appointment :	04.06.2002
DIN :	00093589

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2010

Names of Shareholders	No. of Shares
S. Brij Kumar	1156600
Rita B. Parikh	1100000
Ankit B. Parikh	1100000
NIkhil B. Parikh	1100000
Shamdas Kissendas	835000
Shamdas HUF	1001000
S. Brij Kumar HUF	989000
Ankit B Parikh HUF	220000
NIkhil B. Parikh HUF	200000
Namita A Parikh	420000
Darshana N. Parikh	420000
Shabbir A.	30000
Meenal Shah	10000
Madhu Shah	94200
Dr. Mayuri Shah	94200
Dr. Daven Shah	110000
Lonati	3620000
Total	12500000

As on 15.07.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Men’s , Ladies And Kids Socks [Hosiery Goods].

Products :

Product Description	Item Code No.
Men Women Children Hosiery Goods.	4390

PRODUCTION STATUS As on 31.03.2010

Particulars	Unit	Qty.
Installed Capacity	Pairs Dozen	900000
Actual Production	Pairs Dozen	659046

GENERAL INFORMATION

Customers :

• Moretz Sports, USA
• C and A, Germany
• Dobotex, Holand
• Otto Group
• Chicco
• Proctor SRL

No. of Employees :

Not Available

Bankers :

• Punjab National Bank Kothi Branch, 4-6-464/9, Esamia Bazar, Opp. IMA Building, Hyderabad – 500095, Andhra Pradesh, India

• State Bank of India, Commercial branch, Bank Street, Hyderabad – 500095, Andhra Pradesh, India

• State Bank of Bikaner And Jaipur

Facilities :

Secured Loan [Rs.in millions]	31.03.2010	31.03.2009
Term Loan	271.735	186.170
Working capital Loan	84.977	70.378
Total	356.712	256.548
Note : The term loans for the company from state bank of India, state bank of bikaner and Jaipur and Punjab national bank is secured by first charge on fixed assets. The working capital loan from state bank of india s secured by hypothecation of stock and debtors. The aforesaid loans, in addition to the security are guaranteed by the promoter directors in their personal capacity and third party collateral security of flat in arena cooperative society, andheri, Mumbai, belonging to Mr. Madhu Shah and Mrs. Mayuri Shah and additional collateral security by way of assignment of LIC policies of Mr. Ankit Parikh and Nikhil Parikh. Apart from the above Mr. S. Brij Kumar has given guarantee in his personal capacity.

Banking Relations :	--
Auditors :
Name :	Jayant and Sadashiv Company Chartered Accountant
Address :	HImayat Nagar, Hyderabad – 500001, Andhra Pradesh, India

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
12,500,000	Equity Shares	Rs.10/-each	125.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12,500,000	Equity Shares	Rs.10/-each	125.000 millions

As on 15.07.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
14,500,000	Equity Shares	Rs.10/-each	145.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12,500,000	Equity Shares	Rs.10/-each	125.000 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		125.000	100.000	100.000
2] Share Application Money		94.020	22.320	14.925
3] Reserves & Surplus		73.157	56.889	46.476
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		292.177	179.209	161.401
LOAN FUNDS
1] Secured Loans		356.712	256.548	219.261
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		356.712	256.548	219.261
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		648.889	435.757	380.662
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		497.567	293.291	278.808
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	101.407	83.571	53.845
	Sundry Debtors	24.135	8.145	16.243
	Cash & Bank Balances	5.230	14.151	0.953
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	29.090	46.432	38.839
Total Current Assets		159.862	152.299	109.880
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1.584	2.288	3.641
	Other Current Liabilities	0.000	3.021	3.374
	Provisions	6.956	4.524	1.011
Total Current Liabilities		8.540	9.833	8.026
Net Current Assets		151.322	142.466	101.854
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		648.889	435.757	380.662

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	142.119	120.460	130.232
		Other Income	6.462	8.316	26.057
		TOTAL (A)	148.581	128.776	156.289
Less	EXPENSES
		Manufacturing Expenses	63.667	61.542	69.445
		Salaries, Wages and benefits to Employee	12.074	11.727	8.279
		Administrative, Selling and other Expenses	15.250	13.837	11.934
		Increase decrease in Stock	2.238	(9.804)	(0.868)
		TOTAL (B)	93.229	77.302	88.790
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		55.352	51.474	67499
Less	FINANCIAL EXPENSES (D)		25.190	28.037	28.143
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		30.162	23.437	39.356
Less/ Add	DEPRECIATION/ AMORTISATION (F)		12.026	11.677	12.144
	PROFIT BEFORE TAX (E-F) (G)		18.136	11.760	27.212
Less	TAX (I)		1.868	1.347	3.220
	PROFIT AFTER TAX (G-I) (J)		16.268	10.413	23.992
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		56.889	46.476	22.484
	BALANCE CARRIED TO THE B/S		73.157	56.889	46.476
	EARNINGS IN FOREIGN CURRENCY
		Fob Value of Export	142.100	120.500	130.300
	TOTAL EARNINGS		142.100	120.500	130.300
	IMPORTS
		Raw Materials	1.100	0.100	1.400
		Capital Goods & Spares	4.600	1.800	1.200
	TOTAL IMPORTS		5.700	1.900	2.600
	Earnings Per Share (Rs.)		1.30	--	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	10.95	8.09	15.35
Net Profit Margin (PBT/Sales)	(%)	12.76	9.76	20.89
Return on Total Assets (PBT/Total Assets}	(%)	2.76	2.64	7.00
Return on Investment (ROI) (PBT/Networth)		0.06	1.49	0.17
Debt Equity Ratio (Total Liability/Networth)		1.25	1.49	1.04
Current Ratio (Current Asset/Current Liability)		18.72	15.49	13.69

LOCAL AGENCY FURTHER INFORMATION

Year in Retrospect

The Company is a 100% EOU and has registered total sales of Rs. 142.100 millions or the period ended 31^st March, 2010 in spite of the global economic slow down. The company has been able to achieve the same due to its commitment for quality product.

Expansion Status:

The company is going for a major expansion of its capacities from 9 Lacs pair dozens to 36 Lacs pair dozen per annum. The Company has been allotted land by APIIC admeasuring 5 acres in Mambattu Village, TADA Mandal, Nellore District, Andhra Pradesh, in the APIIC Industrial Park. The entire factory shed along with utility sheds construction is completed. The power sanction has been obtained. The employees in batches are being trained at their Gundlapochampally plant. The First batch of 30 no.s of Socks Knitting machines have been installed and commissioned, production has commenced. The entire project will be completed during this financial year. The main reason for taking up expansion unit to TADA were the area of land is big, there are five ports near to the site which will reduce in the cost of Logistics, easy availability of labour, the entire infrastructure is provided by APIIC. their Company being export oriented unit this will be an advantage in long term resulting in saving of cost and time for exports and imports.

The company has been sanctioned the term Loan from Banks under the leadership of State Bank of India and its associate bank namely State Bank of Bikaner and Jaipur and Punjab National Bank.

Bankers Charges Report as per Registry

Corporate identity number of the company	U17219AP2002PTC039072
Name of the company	PARIKH FABRICS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	H.No.4-3-338,Bank Street, Hyderabad - 500 095, Andhra Pradesh, India
This form is for	Modification of Charge
Charge identification (ID) number of the charge to be modified	80004038
Type of charge	Immovable Property Movable Property Floating Charge
Particular of charge holder	State Bank of India, Commercial branch, Bank Street, Hyderabad – 500095, Andhra Pradesh, India
Nature of instrument creating charge	Supplemental Agreement form C1A, Supplemental Agreement of Hypothecation of Goods and assets for increase in the overall limit Form C 2A Memorandum of Entry Form C5
Date of instrument Creating the charge	22.03.2010
Amount secured by the charge	Rs.179.100 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest - State Bank of India As applicable to EPC Terms of Repayment - On demand Margin - 20% on RM, SIP, FG 100% receivable LC 20% Extent and Operation of the charge - The Charge operate as security, interalia for the due repayment by the company to the SBI Commercial Branch Hyderabad for its working capital limit along with Term Loan to the extend of 179.100 millions along with interest, liquidated damages and other charges.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	There is no change in the security offered
Date of instrument modifying the charge	17/03/2007
Particulars of the present modification	Increased in Working Capital Limit and Term Loan from Rs. 125.000 millions to 179.100 millions.

FIXED ASSETS :

• Land
• Building
• Plant and Machinery
• Furniture and Fixture
• Office Equipments
• Vehicles
• Fire Fighting Equipment
• Computers
• Temple Account
• CWIP

AS PER WEBSITE

PROFILE

India’s leading and most reliable manufacturers of Men’s , Ladies and Kids Socks. Operating out from Hyderabad in the Apparel Export Park promoted by the Government of Andhra Pradesh for last Five years and keeping pace with the requirements of reputed Brands from USA , Europe and Middle east countries.

A quick overview about them :

• Incorporated in 2002 , based in Hyderabad India
• One of the India’s largest manufacturer and exporters of Men’s , Ladies and Kids socks.
• An ISO 9001 : 2000 certified and SA 8000 certified company.
• Present 146 computerized Lonati Knitting machines and expansion underway for addition of another 350 Lonati Knitting machines (to be completed in 2010).
• Present monthly capacity to produce and export 1.00 million pairs of socks and capacity after expansion would be of 3.50 million pairs per month.
• A full fledged in house design team creating and developing exciting collections each season.

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.44.78
UK Pound	1	Rs.73.42
Euro	1	Rs.65.27

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	4
--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		30

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.