MIRA INFORM REPORT

Report Date :

08.11.2011

IDENTIFICATION DETAILS

Name :	WELCO AGENCIES PRIVATE LIMITED
Registered Office :	106, Vishnu Kiran Chamber, Gurudwara Road, Karol Bagh, New Delhi-110005
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.01.1990
Com. Reg. No.:	55-38962
Capital Investment / Paid-up Capital :	Rs.5.898 millions
CIN No.: [Company Identification No.]	U74899DL1990PTC038962
TAN No.: [Tax Deduction & Collection Account No.]	DELW01154G
PAN No.: [Permanent Account No.]	AAACW0134G
Legal Form :	Private Limited Liability Company.
Line of Business :	Service Provider in the Field of Interlining and Garment Accessories
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 160000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported as usually made as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 :	106, Vishnu Kiran Chamber, Gurudwara Road, Karol Bagh, New Delhi-110005, India
Tel. No.:	91-11-28750570 / 28757272
E-Mail :	info@welcoagencies.com ritu.mangla2000@gmail.com
Website :	http://www.welcoagencies.com
Corporate Office :	126 Udyog Vihar, Phase I, Gurgaon- 122016, Haryana, India
Tel. No.:	91-124-4779999
Fax No.:	91-124-4000890
E-Mail :	info@welcoagencies.com yogesh@welcoagencies.com mktg@welcoagencies.com
Branches :	Located at: · New Delhi · Chennai · Mumbai · Bangalore · Ahmedabad

DIRECTORS

(AS ON 29.09.2011)

Name :

Mr. Mahesh Chander Pahwa

Designation :

Managing Director

Address :

21/704, Heritage City, M G Road, Gurgaon, Haryana, India

Date of Birth/Age :

07.08.1945

Date of Appointment :

19.01.1990

DIN No.:

00101094

Other Directorships :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74899DL1990PTC038962	WELCO AGENCIES PRIVATE LIMITED	Managing director	19-01-90	19-01-90	Active	NO
2	U51909DL1981PTC012513	WELCO EXPORT PRIVATE LIMITED	Managing director	19-01-90	19-01-90	Active	NO
3	U51909HR2004PTC035576	PENTACLE IMPEX PRIVATE LIMITED	Director	24-12-04	24-12-04	Active	NO

Name :

Mr. Yogesh Suri

Designation :

Director

Address :

35/502, Heritage City, M G Road, Gurgaon, Haryana, India

Date of Birth/Age :

30.11.1972

Date of Appointment :

03.10.2000

DIN No.:

00101029

Other Directorships :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74899DL1990PTC038962	WELCO AGENCIES PRIVATE LIMITED	Director	03-10-00	03-10-00	Active	NO
2	U51909HR2004PTC035576	PENTACLE IMPEX PRIVATE LIMITED	Director	24-12-04	24-12-04	Active	NO

Name :

Mrs. Sangeeta Suri

Designation :

Director

Address :

35/502, Heritage City, M G Road, Gurgaon, Haryana, India

Date of Birth/Age :

15.07.1974

Date of Appointment :

01.08.1992

DIN No.:

00227785

Other Directorships :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74899DL1990PTC038962	WELCO AGENCIES PRIVATE LIMITED	Director	01-08-92	01-08-92	Active	NO
2	U51909HR2004PTC035576	PENTACLE IMPEX PRIVATE LIMITED	Director	24-12-04	24-12-04	Active	NO
3	U51909DL1981PTC012513	WELCO EXPORT PRIVATE LIMITED	Director	29-09-10	01-02-10	Active	NO

Name :

Mrs. Nisha Pahwa

Designation :

Director

Address :

21/704, Heritage City, M G Road, Gurgaon, Haryana, India

Date of Birth/Age :

03.03.1949

Date of Appointment :

19.01.1990

DIN No.:

00101148

Other Directorships :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74899DL1990PTC038962	WELCO AGENCIES PRIVATE LIMITED	Director	19-01-90	19-01-90	Active	NO
2	U51909DL1981PTC012513	WELCO EXPORT PRIVATE LIMITED	Director	19-01-90	19-01-90	Active	NO

Name :

Mrs. Shubha Pahwa

Designation :

Director

Address :

21/704, Heritage City, M G Road, Gurgaon, Haryana, India

Date of Birth/Age :

04.01.1984

Date of Appointment :

01.04.2005

DIN No.:

02482140

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 29.09.2011)

Names of Shareholders	No. of Shares
Mahesh Chander Pahwa	19149
Yogesh Suri	2614
Sangeeta Suri	7555
Nisha Pahwa	7711
Shubha Pahwa	1892
Amar Gambhir	30
Vishno Devi	10
Anuj Goel	10
Vinay Kumar Agrawal	10
Welco Export Private Limited	20000
Total	58981

(AS ON 30.09.2011)

Equity Shares Break – Up

Category	Percentage
Bodies Corporate (Not mentioned above)	33.91
Directors or relatives of directors	66.09
Total	100.00

BUSINESS DETAILS

Line of Business :

Service Provider in the Field of Interlining and Garment Accessories

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Vijaya Bank

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Vijaya Bank Loan Agreement (Hypothecation of car)	0.000	0.356
Total	0.000	0.356
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Loan from directors not bearing interest	0.000	0.350
Inter corporate deposits	4.500	8.500
Loan from share holders	4.000	7.500
Total	8.500	16.350

Banking Relations :	--
Auditors :
Name :	S. P. Sharma and Associates Chartered Accountant
Address :	M-3, Kanchenjunga Building, 18, Barakhamba Road, New Delhi-110001, Delhi, India
Tel. No.:	91-11-23312455
Fax No.:	91-11-23350751
PAN No.:	AABFS6928G

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
75000	Equity Share	Rs.100/- Each	Rs.7.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
58981	Equity Share	Rs.100/- Each	Rs.5.898 millions

NOTE

(Of the above shares 20283 equity shares are allotted as fully paid up by way of bonus shares from general reserve)

Previous year 58981 Equity shares of Rs.100/- each

(Of the above shares 20283 equity shares are allotted as fully paid up by way of bonus shares from general reserve)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		5.898	5.898	3.898
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		33.258	24.826	17.651
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		39.156	30.724	21.549
LOAN FUNDS
1] Secured Loans		0.000	0.356	0.255
2] Unsecured Loans		8.500	16.350	17.000
TOTAL BORROWING		8.500	16.706	17.255
DEFERRED TAX LIABILITIES		0.000	0.032	0.141
Share Premium		23.000	23.000	0.000
TOTAL		70.656	70.462	38.945
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		18.218	11.461	10.991
Capital work-in-progress		40.223	39.476	33.851
INVESTMENT		0.000	0.641	2.345
DEFERREX TAX ASSETS		0.021	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	18.085	14.080	12.729
	Sundry Debtors	69.368	62.335	43.291
	Cash & Bank Balances	6.529	4.794	4.758
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	6.454	6.937	6.345
Total Current Assets		100.436	88.146	67.123
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	73.845	53.188	66.369
	Other Current Liabilities	9.156	11.518	5.360
	Provisions	5.241	4.556	3.636
Total Current Liabilities		88.242	69.262	75.365
Net Current Assets		12.194	18.884	(8.242)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		70.656	70.462	38.945

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income (Sales)	227.553	208.989	185.050
		Job work	0.122	0.021	NA
		Other Income	0.309	2.196	NA
		TOTAL (A)	227.984	211.206	NA
Less	EXPENSES
		Increase / Decrease in stock	(4.005)	(1.351)
		Purchases	173.020	162.760
		Freight and Cartage Inward	0.043	0.036
		Long Term Capital Loss on Mutual Fund	0.000	0.335
		Loss on Sale of Vehicles	0.012	0.000
		Production Expenses	0.409	0.249
		Employee Remuneration and Benefits	9.336	8.249	Not Available
		Administrative Expenses	5.240	4.385
		Directors Remuneration	12.549	9.988
		Selling and Distribution	11.310	7.923
		Communication Expenses	1.320	1.559
		Other Expenses	2.878	2.260
		TOTAL (B)	212.112	196.393
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		15.872	14.813
Less	FINANCIAL EXPENSES (D)		0.934	1.620
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		14.938	13.193	11.270
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.244	2.006	2.084
	PROFIT BEFORE TAX (E-F) (G)		12.694	11.187	9.186
Less	TAX (H)		4.264	4.090	3.027
	PROFIT AFTER TAX (G-H) (I)		8.430	7.206	6.159
Less	Deferred Revenue Expenditure		0.000	0.031	NA
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.558	1.383	NA
Less	APPROPRIATIONS
		Transfer to General Reserve	8.000	7.000	NA
		Dividend	0.000	0.000	NA
		Tax on Dividend	0.000	0.000	NA
	BALANCE CARRIED TO THE B/S		1.988	1.558	NA
	EARNINGS IN FOREIGN CURRENCY		0.000	2.087	3.877
	IMPORTS VALUE		112.034	109.777	78.820
	Earnings Per Share (Rs.)		143.93	120.33	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.70	3.41	NA
Net Profit Margin (PBT/Sales)	(%)	5.58	5.3	4.96
Return on Total Assets (PBT/Total Assets}	(%)	10.70	11.23	11.76
Return on Investment (ROI) (PBT/Networth)		0.32	0.36	0.43
Debt Equity Ratio (Total Liability/Networth)		2.47	2.80	4.30
Current Ratio (Current Asset/Current Liability)		1.14	1.27	0.89

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS

Sales during the year increased 8.88% as compared to sales of the previous year and net profit also decreased during the year.

FIXED ASSETS

· Furniture and Fixtures

· Office Equipments

· Air Conditioner

· Plant and Machinery

· Vehicle

· Computer

WEBSITE DETAILS:

GROUP PROFILE:

Subject total garment accessories company, was founded by Mr. Mahesh Pahwa, an engineer from IIT Mumbai and IIFT gold medalist in International Trade. Since its inception in 1974, Welco has been in the service of Garment Industry as a solution provider in the field of Interlining and Garment Accessories. Welco's reputation is built on deep-rooted commitment for quality and services. It has been successful by providing world-class trims and interlinings to the industry.

SERVICES:

Welco's philosophy is to attain highest degree of customers satisfaction by anticipating and meeting their requirements as per international standards. Welco provides key services as follows:

· Technical Assistance.

· Lab Testing facility for bonding strength, washing resistance, shrinkage test and correct interlining suggestions.

· Customer Support.

· Fast and Prompt Deliveries.

· Ready Stock availability.

· Bonded warehouse facility.

· Technical Seminar about interlinings.

· Research and Development.

· Recommendations.

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.49.08
UK Pound	1	Rs.78.65
Euro	1	Rs.67.79

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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.