MIRA INFORM REPORT

Report Date :

11.05.2011

IDENTIFICATION DETAILS

Name :	ADIGEAR INTERNATIONAL
Registered Office :	A - 40, Mayapuri Industrial Area, Phase-I, New Delhi – 110 064
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	25.06.2005
Capital Investment / Paid-up Capital :	Rs.270.053 millions
IEC No.:	0505057743
TAN No.: [Tax Deduction & Collection Account No.]	DELA16477G
PAN No.: [Permanent Account No.]	AALFA7055N
Legal Form :	Partnership concern with an unlimited liability of the partners
Line of Business :	Manufacturer, Exporter and Importer of Apparels and Accessories.
No. of Employees :	2550 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear
Comments :	Subject is an established concern in its field. Trade relations are reported as fair. The valuation report provided is of a lesser value then the proposed amount. The networth statement provided however seems to be satisfactory. No complaints have been heard from indirect or market sources. It would be advisable to take adequate securities while dealing with the subject.

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. Sanjay Khanna
Designation :	Partner
Contact No.:	91-9811151245
Date :	09.05.2011

LOCATIONS

Registered Office/ Factory 1 :	A-40, Mayapuri Industrial Area, Phase-I, New Delhi – 110 064, India
Tel. No.:	91-11-41833638/ 40797000/ 41833644
Mobile No.:	91-9811151245 (Mr. Sanjay Khanna)
Fax No.:	91-11-41833637
E-Mail :	adigear@vsnl.com sanjay.khanna@adigear.com
Website :	www.adigear.com
Area :	52000 sq ft
Location :	Rented
Factory 2 :	A-23, Mayapuri Industrial Area, Phase-I, New Delhi – 110 064, India
Area :	15000 sq ft
Location :	Rented
Factory 3 :	A-22, Mayapuri Industrial Area, Phase-I, New Delhi – 110 064, India
Area :	10000 sq ft
Location :	Rented
Factory 4 :	WZ-54, Todapur, Inderpuri Road, New Delhi – 110 012, India
Area :	12000 sq ft
Location :	Rented
Factory 5 :	Plot No. 150, Sector-IV, IMT, Manesar, Gurgaon – 122 001, Haryana, India
Tel. No.:	91-124-4781200/03
E-Mail :	sandeep@adigear.com sanjay.khanna@adigear.com
Area :	42000 sq ft
Location :	Owned
Factory 6 :	Plot No. 253, Sector-VI, IMT, Manesar, Gurgaon – 122 001, Haryana, India
Area :	36000 sq ft
Location :	Rented
Factory 7 :	Plot No. 189, Sector-IV, IMT, Manesar, Gurgaon, Haryana, India
Area :	52000 sq ft
Location :	Rented

PARTNERS

Name :	Mr. Pran Nath Khanna
Designation :	Partner
Address :	D-45, Narayna Vihar, New Delhi, India
Date of Birth/Age :	10.09.1944
Qualification :	Post Graduate
Experience :	40 Years
Name :	Mrs. Anju Khanna
Designation :	Partner
Address :	D-45, Narayna Vihar, New Delhi, India
Date of Birth/Age :	17.05.1947
Qualification :	Graduate
Experience :	35 Years
Name :	Mr. Sanjay Khanna
Designation :	Partner
Address :	D-45, Narayna Vihar, New Delhi, India
Date of Birth/Age :	30.12.1966
Qualification :	Graduate
Experience :	20 Years
Name :	Mr. Sandeep Khanna
Designation :	Partner
Address :	D-45, Narayna Vihar, New Delhi, India
Date of Birth/Age :	07.12.1967
Qualification :	Graduate
Experience :	18 Years

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Apparels and Accessories.
Products :	Readymade Garments Ladies suit Jacket Skirts Shirts Track suits T-shirts Sweat shirts Leather accessories Golf bags Pouches Caps Fashion Bags Table 50, 54 Runner Cushion Cover Mat Bed Cover Shirts Jackets Trousers Shorts Children Garments Beaded Garments Fancy Bags Leather Bags Canvas Bags Sports Bags Travel Bags Dari Bags Sequence bags Hats Beaded bags Beach wear bags / caps Curtains quilts
Exports :
Products :	Garments and Accessories
Countries :	USA, UK, Germany, France, Denmark, Spain etc.
Imports :
Products :	Fabric and Accessories
Countries :	China, Taiwan, Vietnam, Korea, etc.
Terms :
Selling :	Credit (90 to 120 days)
Purchasing :	Credit (7 to 10 days)

GENERAL INFORMATION

Customers :

Brand Owners

No. of Employees :

2550 (Approximately)

Bankers :

v Standard Chartered Bank, H-2, Connought Place, New Delhi, India

v Punjab National Bank, IBB, DCM Building, Barakhamba Road, New Delhi, India

v HSBC Limited, Barakhamba Road, New Delhi, India

v DBS Bank Limited, Barakhamba Road, New Delhi, India

v State Bank of India

v Andhra Bank

v Canara Bank

v ICICI Bank

Facilities :

Name and Address of Bank	Fund Based (Rs. in millions)	Non Fund Based (Rs. in millions)	Term Loan (Rs. in millions)
Standard Chartered Bank H-2, Connought Place, New Delhi, India	2.600	0.000	0.000
Punjab National Bank, IBB, DCM Building, Barakhamba Road, New Delhi, India	2.700	0.400	0.330
HSBC Limited Barakhamba Road, New Delhi, India	2.000	(1.500)	0.000
DBS Bank Limited, Barakhamba Road, New Delhi, India	1.200	0.500	0.000

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Term Loan	21.709	18.514
OCC Limit	305.059	311.377
Domestic/ FBP Bills Purchase	247.961	133.781
Packing Credit	0.000	14.574
Advance against Purchase Bills	124.789	29.708
Car Loan Account	3.622	3.420
Total	703.140	511.374

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Friends and Relatives	69.820	58.320
Total	69.820	58.320

Banking Relations :	--
Auditors :
Name :	Kumar and Sikri Chartered Accountants
Address :	520, Plot No.3, Sector - 10, Dwarka, New Delhi, India
Tel. No.:	91-11-64612960
Sister Concerns :	Metaphor Exports Private Limited Address: 151/4, IMT Manesar, Gurgaon, Haryana, India Line of Business: Manufacturer of Knitted Garments. Adigear Enterprises Address: D-45, Naraina Vihar, New Delhi, India Line of Business: Trading in Garments and Accessories.

CAPITAL STRUCTURE

CAPITAL ACCOUNT		31.03.2010 (Rs. in millions)
P.N. Khanna
Opening Balance	121.759
Addition during the year
Add profit during the year	28.120
Less: Withdrawal	3.644	146.234
Mrs. Anju Khanna
Opening Balance	41.127
Addition during the year
Add profit during the year	11.248
Less: Withdrawal	1.241	51.134
Mr. Sandeep Khanna
Opening Balance	28.586
Addition during the year
Add profit during the year	8.436
Less: Withdrawal	0.650	36.372
Mr. Sanjay Khanna
Opening Balance	28.908
Addition during the year
Add profit during the year	8.436
Less: Withdrawal	1.031	36.313
Total		270.053

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		270.053	220.379	173.290
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		270.053	220.379	173.290
LOAN FUNDS
1] Secured Loans		703.140	511.374	351.814
2] Unsecured Loans		69.820	58.320	45.820
TOTAL BORROWING		772.960	569.694	397.634
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1043.013	790.073	570.924
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		95.665	77.791	81.126
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	375.008	223.618	149.474
	Sundry Debtors	599.267	516.779	375.528
	Cash & Bank Balances	17.175	13.632	7.749
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	47.919	37.987	26.651
Total Current Assets		1039.369	792.016	559.402
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	50.878	42.333	30.229
	Other Current Liabilities	0.000	0.000	1.770
	Provisions	41.143	37.401	37.605
Total Current Liabilities		92.021	79.734	69.604
Net Current Assets		947.348	712.282	489.798
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1043.013	790.073	570.924

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	2217.604	1710.458	1512.918
		Other Income	7.175	8.717	2.469
		TOTAL (A)	2224.779	1719.175	1515.387
Less	EXPENSES
		Accretion/ Decretion in Stocks	(151.390)	(74.144)	(54.748)
		Materials	1866.175	1382.028	1188.061
		Manufacturing Expenses	190.250	176.751	138.560
		Personnel Expenses	83.047	39.599	21.077
		Administration Expenses	35.538	25.795	63.631
		Selling and Distribution Expenses	15.692	15.029	10.700
		TOTAL (B)	2039.312	1565.058	1367.281
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		185.467	154.117	148.106
Less	FINANCIAL EXPENSES (D)		92.109	68.602	49.620
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		93.358	85.515	98.486
Less/ Add	DEPRECIATION/ AMORTISATION (F)		11.943	11.196	10.489
	PROFIT BEFORE TAX (E-F) (G)		81.415	74.319	87.997
Less	TAX (H)		25.175	26.035	30.422
	PROFIT AFTER TAX (G-H) (I)		56.240	48.284	57.575
	PROFIT AFTER TAX & TRANSFERRED TO PARTNER’S CAPITAL A/C
	Mr. P.N. Khanna		28.120	24.142	28.788
	Mrs. Anju Khanna		11.248	9.656	11.515
	Mr. Sandeep Khanna		8.436	7.243	8.636
	Mr. Sanjay Khanna		8.436	7.243	8.636
			56.240	48.284	57.575
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	60.769	NA	NA
	TOTAL EARNINGS		60.769	NA	NA
	IMPORTS
		Raw Materials	14.110	NA	NA
		Capital Goods	10.500	NA	NA
	TOTAL IMPORTS		24.610	NA	NA

Note : Sole Proprietory and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.53	2.81	3.80
Net Profit Margin (PBT/Sales)	(%)	3.67	4.34	5.82
Return on Total Assets (PBT/Total Assets}	(%)	7.17	8.54	13.74
Return on Investment (ROI) (PBT/Networth)		0.30	0.34	0.51
Debt Equity Ratio (Total Liability/Networth)		3.20	2.95	2.70
Current Ratio (Current Asset/Current Liability)		11.29	9.93	8.04

LOCAL AGENCY FURTHER INFORMATION

BRIEF HISTORY

Subject is a part of K.K. group of companies which is more than 40 years old. The group consists of subject. Adigear India, Metaphor Exports Private Limited, Printex House, Adigear Enterprises, and Metaphor creations, consolidating turnover of more than 2000.000 millions.

Subject was incorporated in 2000 with a view to supplying readymade garments (knits) and other fashion accessories to domestic and as well as International brands. In a short span of time, they have crossed a turn-over of Rs.1120.000 millions (year ending 31^st march 2007). Some of their major customers are Reebok India Limited, Benetton, ITC Limited, Pupa, Levi, Monsoon, Accessorize, etc. Since, India has become a preferred destination for sourcing of garments, major international/domestic retailers are approaching them in a big way. Since the business is booming, they strongly feel considering their experience, they must expand their business in order to meet this demand.

The firm is into manufacturing of readymade garments for multinational brand like Adidas, Puma, Reebok, United Color of Benetton, Proline, Allen Solly, Best Sellers, Debenhems, Monsoon, Sears, Kouls, American Eagle outfitters etc. The firm has also been registered with Canteen Stores Department, Ministry of Defence for supply of 13 items to CSD canteen, which include bags, caps, track suit, trousers, Jeans, belt, wallet etc. The firm has also got good response from international market as it has recently got export order from USA and European Market.

The firm has long experience in this field and having satisfied customer in India and abroad. Presently firm has focused on domestic as well as international market for manufacturing of readymade garments and sportswear. The readymade garments manufactured by the firm are against confirmed order only.

__________________________________________________________________________________________

OPERATING STATEMENT

(Rs. in millions)

Particulars	2010-11	2011-12
	Provisional	Projected
	31.03.2011	31.03.2012
Gross Sales
I) Domestic	2847.739	3720.000
II) Export Sales	189.895	200.000
Total	3037.634	3920.000
Less Excise Duty	34.114	420.000
Net Sales	3003.520	3500.000
% wise rise/fall in net sale as compared to previous year	35.90%	16.53%
Cost of Sales
i) Raw materials (including stores and other items used in the process of manufacture)	2517.744	2917.700
(a) Imported	14.852	17.500
(b) Indigenous	2502.892	2900.200
ii) Other Spares
a) Imported	--	--
b) Indigenous	--	--
iii) Power and fuel	16.862	20.000
iv) Direct labour (factory wages and salaries)	93.228	110.000
v) Other manufacturing expenses	168.138	170.000
vi) Depreciation	14.420	13.089
vii) Sub Total (i to vi)	2810.392	3230.789
viii) Add: Opening Stock of WIP	96.477	144.786
Sub total	2906.869	3375.575
ix) Less: Closing Stock of WIP	144.786	167.107
x) Total Cost of Production	2762.083	3208.468
Add Opening Stock of Finished Goods	38.245	74.388
Sub Total	2800.328	3282.856
Less: Closing Stock of Finished Goods	74.388	87.903
Total Cost of Sales	2725.940	3194.953
Selling, General & Administration Expenses	68.832	75.000
Sub Total	2794.772	3269.953
Operating Profit before Interest	208.748	230.047
Interest	131.525	149.525
Operating Profit after Interest	77.223	80.522
i) Add Other Non Operating Income
a) Interest on FDR	1.022	1.100
b) Others including Drawback	8.628	11.000
Sub-total (income)	9.650	12.100
ii) Deduct Other Non Operating Expenses	--	--
a)
b)
Sub-total (deduct)	0.000	0.000
iii) Net of other non-operating income/expenses	9.650	12.100
Profit Before tax/ Loss	86.873	92.622
Provision for taxation	26.922	28.704
Net profit/ loss	59.951	63.919
a) Equity dividend paid
b) Dividend Rate	8.062	10.000
Retained Profit (14-15)	51.889	53.919
Retained Profit/ Net Profit (% age)	86.55	84.36

__________________________________________________________________________________________

ANALYSIS OF BALANCE SHEET

(Rs. in millions)

Particulars	2010-11	2011-12
	Provisional	Projected
	31.03.2011	31.03.2012
LIABILITIES:
CURRENT LIABILITIES
1. Short term borrowings from Banks (including bills purchased, discounted & excess borrowings placed on repayment basis) Note: Bills negotiated under LC should be excluded
i) From applicant bank	326.299	410.000
ii) From other banks	579.564	570.000
ii) Factoring Limit	146.631	170.000
Sub Total (A)	1052.494	1150.000
2. Short term borrowings from Others	--	--
3. Sundry Creditors (Trade)	57.028	72.500
4. Advance payments from customers/ deposits from dealers	--	--
5. Provision for taxation	26.922	28.704
6. Dividend Payable	--	--
7. Other Statutory liabilities (due within one year)	--	--
8. Installments of Term Loans/ Deferred payment credits/ Debentures/ deposits/ redeemable preference shares (due within one year)	8.196	8.316
9. Other Current Liabilities due within one year (due within one year) (specify major items)	16.328	16.463
Sub Total (B)	108.474	125.983
10. TOTAL CURRENT LIABILITIES (total of 1 to 9)	1160.968	1275.983
TERM LIABILITIES
11. Debentures (not maturing within one year)	--	--
12. Preference shares (redeemable after one year)	--	--
13. Term Loans (excluding installments payable within one year)	20.009	13.133
14. Deferred Payment Credits (excluding installments due within one year)	--	--
15. Term Deposits (repayable after one year)	15.000	30.000
16. Other term liabilities (Vehicle Loans)	3.328	1.888
17. Total term liabilities (Total of 11 to 16)	38.337	45.021
18. TOTAL OUTSIDE LIABILITIES (10+17)	1199.305	1321.004
NET WORTH
19. Ordinary Share Capital	321.941	375.860
20. Quasi Capital (Unsecured Loan)	69.820	94.820
21. General Reserve	--	--
22. Revaluation Reserve	--	--
23. Other Reserves (excluding provision)	--	--
24. Surplus (+) or deficit (-) in profit and loss account	--	--
25. NET WORTH	391.761	470.680
26. TOTAL LIABILITIES (18+24)	1591.065	1791.683
ASSETS
Current Assets
26. Cash & Bank Balances	2.819	3.000
27. Investments
i) Government and other trustee Securities	--	--
ii) Fixed Deposits with Banks	12.500	12.500
28. Receivables
i) Receivables Other than Deferred, exports, Factored (including bills purchased and discounted by banks)	670.920	824.130
Factored Debtors	146.631	170.000
ii) Export Receivables (including bills purchased/ discounted by banks)	83.098	43.836
29. Installments of deferred receivables (due within one year)	--	--
30. Inventory :
i) Raw Materials (including stores and other items used in the process of manufacture)	300.727	335.735
a) Imported	--	--
b) Indigenous	--	--
ii) Stock in process	144.786	167.107
iii) Finished Goods	74.388	87.903
iv) Other consumable spares
a) Imported	--	--
b) Indigenous	--	--
31. Advances to suppliers of raw materials and stores/ spares	9.575	9.575
32. Advance payment of taxes	26.000	28.704
33. Other Current Assets (specify major items)	18.348	16.009
34. TOTAL CURRENT ASSETS (Total of 26 to 33)	1489.792	1698.499
Fixed Assets
35. Gross Block (including land and building, machinery, capital work in progress)	164.956	169.956
36. Depreciation to date	63.683	76.772
37. NET BLOCK (35-36)	101.273	93.184
OTHER NON-CURRENT ASSETS	--	--
38. Investments/ Book Debts/ Advances/ Deposits (Which are not current assets):	--	--
I) a) Investments in subsidiary companies/ affiliates	--	--
b) Others	--	--
ii) Advances to suppliers of Capital goods and Contractors	--	--
iii) Deferred receivables (maturity exceeding one year)	--	--
iv) Other-Security Deposits	--	--
39. Non-consumable stores and spares	--	--
40. Other non-current assets including dues from directors	--	--
41. TOTAL OTHER NON CURRENT ASSETS (Total of 38 to 40)	0.000	0.000
42. Intangible assets (Patents, Goodwill, Preliminary Expenses, bad/ doubtful debts not provided for, etc.)	--	--
43. TOTAL ASSETS (Total of 34, 37, 41 & 42)	1591.065	1791.683
44. TANGIBLE NETWORTH (24-42)	391.761	470.680
45. NET WORKING CAPITAL [(17+24)-(37+41+42)] To tally with 34-10	328.825	422.517
46. Current Ratio (Items 34/10)	1.28	1.33
47. Total Outside Liabilities/Tangible Net Worth (without considering quasi capital) (18/44)	3.73	3.51
48. Total Outside Liabilities/Tangible Net Worth (with considering quasi capital) (18/44)	3.06	2.81
ADDITIONAL INFORMATION
A) Arrears of depreciation
B) Contingent liabilities
i) Arrears of cumulative dividends	--	--
ii) Gratuity Liability not provided for	--	--
iii) Disputed excise/ customs/ tax Liabilities	--	--
iv) Other Liabilities not provided for	--	--

__________________________________________________________________________________________

COMPARATIVE STATEMENT OF CURRENT ASSETS AND LIABILITIES

(Rs. in millions)

Particulars	2010-11	2011-12
	Provisional	Projected
	31.03.2011	31.03.2012
ASSETS
Current Assets
1. Raw materials (including Stores & other items used in the process of manufacture)	300.727	335.735
a) imported	--	--
(Days’ consumption)	--	--
b) Indigenous	--	--
(Days’ consumption)	--	--
2. Other Consumable Spares, excluding those included in 1 above
a) Imported	--	--
(months Consumption)	--	--
b) Indigenous	--	--
(months Consumption)	1.43	1.38
3. Stocks in process	144.786	167.107
(months cost of Consumption)	0.63	0.62
4. Finished Goods	74.388	87.903
(months consumption)	0.33	0.33
5. Receivables other than export & deferred receivables (including Bills purchased & discounted by bankers)	817.551	994.130
Days’ domestic sales	3.45	3.21
Excluding deferred payment sales
6. Export Receivables (including Bills purchase & Discount)	83.098	43.836
Days’ export sales	5.25	2.63
7. Advances to suppliers of raw materials & stores/ spares, consumables	9.575	9.575
8. Other current assets including cash & bank balances & deferred receivables due within one year (specify major items)	59.667	60.213
9. TOTAL CURRENT ASSETS	1489.792	1698.499
(other than bank borrowings for working capital)
LIABILITIES
CURRENT LIABILITIES (OTHER THAN BANK BORROWINGS FOR WORKING CAPITAL
10. Creditors for purchase of raw materials, stores & consumable spares	57.028	72.500
(Months’ purchases)	0.27	0.29
11. Advances from customers	--	--
12. Statutory Liabilities	--	--
13. Other Current Liabilities (specify major items) Short term borrowings, unsecured loans, dividend payable, installments of TL DPG, Public Deposits, debentures etc.	51.446	53.483
14. TOTAL	108.474	125.983

__________________________________________________________________________________________

COMPUTATION OF MAXIMUM PERMISSIBLE BANK FINANCE FOR WORKING CAPITAL

(Rs. in millions)

Particulars	2010-11	2011-12
	Provisional	Projected
	31.03.2011	31.03.2012
1. Total Current Assets	1489.792	1698.499
2. Other Current Liabilities (other than bank borrowings)	108.474	125.983
3. Working Capital Gap (WCG) (1 – 2)	1381.318	1572.516
4. Minimum stipulated net working capital – 25% of WCG/ 25% of total current assets as the case may be depending upon the method of lending being applied. (Export receivables to be excluded under both methods)	324.555	382.170
5. Actual/ projected net working capital	328.825	422.517
6. Items 3 minus item 4	1056.763	1190.346
7. Items 3 minus item 5	1052.494	1150.000
8. Maximum permissible bank finance (item 6 or 7 whichever is lower)	1052.494	1150.000
9. Excess borrowings representing short fall in NWC (4-5)	(4.270)	(40.347)

__________________________________________________________________________________________

FUNDS FLOW STATEMENT

(Rs. in millions)

Particulars	2010-11	2011-12
	Provisional	Projected
	31.03.2011	31.03.2012
1. SOURCES
a) Net profit (after tax)	59.951	63.919
b) Depreciation	14.420	13.089
c) Increase in capital	0.000	0.000
d) Increase in Term Liabilities (including Public deposits)	21.717	6.684
e) Decrease in
I) Fixed Assets	--	--
ii) Other Non current assets	--	--
f) Others
g) TOTAL	96.088	83.692
2. USES
a) Net loss	--	--
b) Decrease in Term Liabilities (including Public deposits)	--	--
c) Increase in
I) Fixed Assets	20.028	5.000
ii) Other Non Current Assets	--	--
d) Dividend payments	--	--
e) Others	--	--
f) TOTAL	20.028	5.000
3. Long term surplus (+) deficit (-) (1-2)	76.060	78.692
4. Increase/ decrease in current assets (as per details given below)	341.474	208.707
5. Increase/decrease in current liabilities other than bank borrowings	7.741	17.509
6. Increase /decrease in working capital gap	336.575	191.199
7. Net surplus(+)/ deficit (-) (Difference of 3 & 6)	(260.515)	(112.507)
8. Increase/ decrease in Bank borrowings	268.577	97.507
INCREASE/DECREASE IN NET SALES	793.373	496.480
BREAK UP OF CURRENT ASSETS
I) Increase/Decrease in raw materials	60.442	35.008
II) Increase/Decrease in stock in process	48.309	22.321
III) Increase/Decrease in finished goods	36.143	13.515
IV)Increase/decrease/ in receivables
a) Domestic	118.880	176.579
b) Export	76.394	(39.262)
V) increase/decrease in stores & Spares	--	--
VI) Increase/Decrease in other current assets	1.306	0.546

Note: Increase/ decrease under items 4 to 8, as also under break-up of (4) should be indicated by (+) (-).

__________________________________________________________________________________________

NET WORTH OF MR. PRAN NATH KHANNA AS ON 1^ST JANUARY, 2011

(Rs. in Millions)

		Amount
Assets	INVESTMENT IN BUSINESS
	Capital in Adigear International	162.318
	Capital in Adigear Enterprises	3.032
	Share Capital in Metaphor Exports Private Limited	6.926
	Loan to Metaphor Exports Private Limited	5.729
	Loans and Advance	32.528
	OTHERS
	Jewellery	1.138
	Cash and Bank Balance	0.538
	LIC (Surrender Value)	0.968
	Other Precious Items	1.325
	Total	214.502
Personal Liabilities/ Loan from Friends/ Relatives		17.532
Net Worth	196.970 (Approximately)	196.970

__________________________________________________________________________________________

NET WORTH OF MRS. ANJU KHANNA AS ON 1^ST JANUARY, 2011

(Rs. in Millions)

		Amount
	IMMOVABLE
	100% Share in the property situated at DLF Qutab Enclave (Market Valued approximately)	31.208
Assets	INVESTMENT IN BUSINESS
	Capital in Adigear International	57.780
	Share Capital in Metaphor Exports Private Limited	2.934
	Loan to Metaphor Exports Private Limited	4.000
	Other Investment	3.255
	OTHERS
	Jewellery
	Cash and Bank Balance	0.875
	LIC (Surrender Value)	0.675
	House Holds and Other Precious Items	2.132
	Total	102.859
Personal Liabilities/ Loan from Friends/ Relatives		6.528
Net Worth	96.331 (Approximately)	96.331

__________________________________________________________________________________________

NET WORTH OF MR. SANJAY KHANNA AS ON 1^ST JANUARY, 2011

(Rs. in Millions)

		Amount
Assets	INVESTMENT IN BUSINESS
	Capital in Adigear International	40.766
	Capital in Own Business	2.117
	Shares in Metaphor Exports Private Limited	5.102
	Loans and Advance	4.320
	OTHERS
	Jewellery	0.718
	Cash and Bank Balance	0.635
	LIC (Surrender Value)	0.795
	Other Precious Items	0.865
	Total	55.318
Personal Liabilities/ Loan from Friends/ Relatives		6.040
Net Worth	49.278 (Approximately)	49.278

__________________________________________________________________________________________

NET WORTH OF MR. SANJAY KHANNA AS ON 1^ST JANUARY, 2011

(Rs. in Millions)

		Amount
Assets	INVESTMENT IN BUSINESS
	Capital in Adigear International	41.035
	Capital in Own Business	1.825
	Shares in Metaphor Exports Private Limited	3.220
	Loans and Advance	2.960
		1.040
	OTHERS
	Jewellery	0.835
	Cash and Bank Balance	0.278
	LIC (Surrender Value)	0.732
	Other Precious Items	0.832
	Total	52.757
Personal Liabilities/ Loan from Friends/ Relatives		5.840
Net Worth	46.917 (Approximately)	46.917

__________________________________________________________________________________________

VALUATION REPORT

PART A BASIC DATA

I. GENERAL

1. Purpose of valuation	To assess fair market value
2. Name of the owner/ customer	Adigear International
3. Address of property being valued	Plot No.MA-23, DLF City, Phase – III, Gurgaon
4. Documents produced for perusal	Nil
5. Brief description of the property under valuation	Property in question is a leveled, clearly demarcated intermittent residential plot, measuring 495.61 sq. yd. or 414.38 sq. mt. which is part of prime residential area of Gurgaon, developed by DLF Universal Limited.
6. Scope of Valuation	For raising loan/ limit
7. If this report is to be used for any bank purpose, state the name of the bank and branch, if known	Development Bank of Singapore, Barakhamba Road, New Delhi

II. DESCRIPTION OF THE PROEPRTY

1. Postal address of the property	Plot No.MA-23, DLF City, Phase – III, Gurgaon
2. Location of the property	--
Plot No.	23
S.F. No./ T.S. No.	--
Village/ Block	MA
Taluk/ Ward	--
District/ Municipality/ Corporation	Gurgaon
3. Geographical location of property
North	24 Mt. wide road
East	Plot No.MA-24
West	Plot No.MA-25
South	Other Property
4. Property tax receipt referred
Assessment number
Tax number	N.A.
Tax amount
Receipt in the name of
5. Electricity service connection number
In the name of	N.A.
6. Property is presently occupied by	Vacant possession is with the owner
7. If tenanted fully, What is the total monthly rent	N.A.
If occupied by both
By assuming the entire building is let out
(I) What is the probable monthly rent?	N.A.
(II), What Is the advance amount?

III. PROCEDURE OF VALUATION: On prevailing market rates.

PART- B- LAND

1. Plot area	495.61 Sq. Yd.
2. Characteristics of the site	(Rectangular plot)
* What is the character of the locality?	Residential
* What is the classification of the locality	Posh
* Road facilities are available	Posh
* What is the width of the road	24 Mt. wide road
* Any factors which affect the marketability of the land	It is adjoining to Tagore International school
* Tenure of the land	Freehold
* Ammenities	All available within 5 Km
* Is it locked land	No
* Power supply	Available
* Water availability	Available
* Sewage	Available

3. Value of adoption GLR
I) Guideline rate as obtained from the register’s office	Not Available
II) Value of land Registrar’s office GLR	Not Available
4. Value by adoption PMR
Prevailing market rate, after considering the size and location of plot.	Varies between Rs.0.055 million to Rs.0.065 million per Sq. Yd.
5. Value of land by adopting PMR
Area of Plot	495.61 Sq. Yd.
Applicable rate	Rs.0.060 million Per Sq. Yd.
Total Land value	Rs.29.737 millions

PART C- BUILDING

1. Type of construction
2. Quality of construction
3. Appearance of building	N.A., as it Is only a plot being valued
4. Maintenance of building
5. Plinth area

Part	Description	Value by adoption
		GLR	PMR
B	Land value	NA	Rs.29.737 millions
C	Building	NA	Nil
D	Amenities	NA	Nil
E	Services	NA	Nil
	Total	--	Rs.29.737 millions
			Say Rs.29.737 millions
ANY OTHER DETAILS		Nil

PART D - CERTIFICATE

1.	it is hereby certified that in my opinion
	1) the present market value of the property by adoption prevailing market rate for plot measuring 495.61 Sq. Yds. is Rs.29.736 millions
2.	If this property is offered as collateral security, the concerned financial institution is requested to verify the extent of land shown in this valuation report, with respect to the latest legal report
3.	Value varies with the purpose and date. This report is not to be referred if the purpose is different other than mentioned (1)
4.	Property was inspected on 27.03.2001, in the presence of company’s representative
5.	Legal aspects were not considered in this valuation.
6.	This valuation work is undertaken by this valuer based upon the request from Development Bank of Singapore, New Delhi.

__________________________________________________________________________________________

VALUATION OF INDUSTRIAL PROPERTY AT PLOT NO.150, SECTOR - 4, IMT MANCSAR

A/C. ADIEAR INTERNATIONAL

GENERAL
Ø Purpose for which valuation is made	To assess fair market value
Ø Date on which valuation is made	27.03.2007
Ø Request received from	Development Bank of Singapore, New Delhi
Ø Name of the owner/ owners	A/c. Adigear International
Ø If the proprietory is under joint ownership/ co-ownership, share of each such owner. Are the shares undivided?	Company owned
Ø Brief description of the inspection	1) Property in question is a B+3 storeyed building being built on an industrial p1t measuring 1800 sq. mt. 2) Building as on date is 50% complete and is expected to be completed within three months. 3) Total built up area as per documents produced at site is 26720 sq. ft. 4) Subject property is abutting adjoining property which is also under construction is also owned by the company. Proper dividing wail has been provided in between. 5) Property is part of a well developed industrial area
Ø Location, Street, Ward No.	Plot No.150, Sector - 4, IMT, Manesar
Ø Survey/ Plot No. of Land
Ø Is the property situated in residential Commercial/ mixed area/ industrial area	Industrial area
Ø Classification of locality-high class/ middle class/ poor class	Middle Class
Ø Proximity to civic amenities like schools, hospitals, offices, market, etc.	All available with in 5 Kms.
Ø Means and proximity to surface communication by which the locality is served.	Served by road transport.
LAND
Ø Area of land supported by documentary proof, shape, dimension, physical features.	1800 Sq. Mtr. (Rectangular plot) (size 30 Mt X 60 Mt)
Ø Roads, Streets, or lanes on which the land is abutting.	North – Plot No.151 East – Other property West – 30mt wide road South – Plot No.149
Ø Is it Free-hold or Lease-hold land?	Freehold (as reported)
Ø If lease-hold, the name of lessor/lessee, nature of lease, date of commencement and termination of lease and terms of renewal of lease.	NA
(i) Initial premium
(ii) Ground rent payable per annum
(iii) Unearned increase payable to the lessor in the event of sale or transfer
Ø Is there any restrictive covenant in regard to use of land?	Far industrial use only.
Ø Are there any agreements of easements?	No
Ø Does the land fall in an area included in any Town Planning plan of Government or any statutory body? If so, give particulars	Under HSIDC, Manesar
Ø Has any contribution been made towards development or is any demand for such contribution still outstanding?	Site developed by HSIDC
Ø Has the whole or part of the land been notified for acquisition by Government or any statutory body? Give date of the notification.	No
IMPROVEMENTS
Ø i) Is the building Owner occupied! tenanted/ both?	N.A. (as it is under construction)
ii) If partly owner occupied, specify portion and extent of area under owner occupation.
Ø What is the floor space index permissible and percentage actually utilized?	Utilised as per bye laws
SALES
Ø Give instances of sates of immovable property in the locality on a separate sheet indicating the name and address	Instances of recent sale in the area are not available, as actual transaction details are not easily available
Ø If sale instances are not available or not relied upon, the basis of arriving at the land rate	On inquiries made locally it was learnt that the prevailing market rate in varies between Rs.0.012 million to Rs.0.015 million per Sq. Mt. depending upon the location of plot.
Ø Land rate adopted in this Valuation	Rs.0.014 million per Sq. Mtr.
Ø a) Year of commencement of construction b) Year of completion of construction	Under construction
Ø What was the method of construction by contract/by daily labour/both?	Details not available
Ø For items of work done on contract, produce copies of agreements.	Details not available
Ø For items of work done by engaging labour directly, give basic rate of materials and labour supported by documentary proof.	Details not available

TECHNICAL DETAILS

Ø No. of floors and height of each floor	B + 3 / Roof ht.: 12ft
Ø Plinth area floor-wise
a) Basement b) Ground Floor c) First Floor d) Second Floor	7840 Sq. Ft. 7840 Sq. Ft. 7840 Sq. Ft. 3200 Sq. Ft. 26720 S. Ft.
Ø Year of construction	Under construction
Ø Estimated future life	50 Years (after completion)
Ø Type of construction - load bearing walls/ R.CC. frame / Steel frame.	R.C.C. framed
Ø Type of foundations	Raft foundation
Ø Roofing and terracing	RCC
Ø Sanitary installations	Yet to be provided
Ø Compound Wall
I) Height and length	Height = 8 Ft.
ii) Type of construction	B/M wall
Ø Overhead tanks
(i) Where located (ii) Capacity (iii) Type of construction	Yet to be provided
Ø Pumps - No. and their horsepower	One submersible pump is installed
Ø Roads and pavement with in the compound approximate area and type of paving.	Yet to be done
Ø Sewage disposal - whether connected to public sewage. If septic tanks provided. No. and capacity.	Connected to public sewers,

PART- II

PREMABLE

1) In accordance to the instructions received from Development Bank of Singapore, Barakhamba Road, New Delhi, valuation of property situated at Plot No.150, Sector-4, IMT Manesar, was under taken. Purposes of valuation is to arrive at fair market value for bank purposes.

2) Building comprises of a B+3 floors being built on a plot measuring 1800 sq. mtr., which as on date 50% complete.

3) Total built up are is 26720 sq. ft. Valuation is based on the information and particulars given by the representative of company, which have been verified to the maximum possible extent, during site visit done.

VALUATION

LAND

On, inquiries made from estate agents of the area, it was learnt that prevailing land rates varied between Rs.0.012 million and Rs.0.015 million per Sq. Mt. depending upon location of the property land rate of Rs.0.014 million per Sq. Mt. is considered reasonable, and the same has been adopted for valuation, which in my opinion is fair and reasonable.

Total value of land, thus, works out as under: -

Plot Area – 1800 sq. mt.

Rate adopted – Rs.0.014 million per sq. mt.

= Rs.24.300 millions

BUILDING:

Building is valued on prevailing P.A. rates for similar construction.

Total built-up area: 26720 Sq. Ft. (i)

Rate/ Sq. ft, adopted (In existing condition): Rs.400/- (ii)

Building stage value (i x ii): 26720 x 400

= Rs.10.688 millions

FAIR MARKET VALUE OF PROPERTY

Taking land and building cost as calculated above, value of the property works out as under:-

Land Value = Rs.24.300 millions

Building Value = Rs.10.688 millions

Add: for compound wall, paving, pump etc. L.S. Rs.0.300 million

Total = Rs.35.288 millions

Say – Rs.35.288 millions

__________________________________________________________________________________________

TRADE REFERENCES:

Adidas India Marketing Private Limited

Contact Person: Mr. Balbir Singh

Mobile No.: 91-9910899224

Benetton India Private Limited

Contact Person: Mr. Vimal Giggo

Mobile No.: 91-9811963400

Pantaloon Retail India Limited

Contact Person: Ms. Rinku Sood

Mobile No.: 91-9871019414

__________________________________________________________________________________________

FIXED ASSETS:

v Land

v Machinery

v Building

v Computer

v Furniture and Fixtures

v Electrical/ Office Equipment

v Vehicle

__________________________________________________________________________________________

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.44.73
UK Pound	1	Rs.73.21
Euro	1	Rs.63.90

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.