MIRA INFORM REPORT

Report Date :

26.09.2011

IDENTIFICATION DETAILS

Name :	JEANS KNIT PRIVATE LIMITED
Registered Office :	21, E1 2^nd Phase, Industrial Area, Peenya, Bangalore – 560058, Karnataka
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	20.09.2004
Com. Reg. No.:	08 - 034722
Capital Investment/ Paid-up Capital:	Rs. 0.100 Millions
CIN No.: [Company Identification No.]	U18101KA2004PTC034722
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Readymade Garments
No. of Employees:	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (61)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 8680000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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 – 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

LOCATIONS

Registered Office :	21, E1 2^nd Phase, Industrial Area, Peenya, Bangalore – 560058, Karnataka, India
Tel. No.:	91-80-28397511/42865000/42865100/42865200
Fax No.:	91-80-28398320/28371237
E-Mail :	ffi@fibresnfabrics.com
Website :	www.fibresnfabrics.com
Location :	Owned

DIRECTORS

As on 30.09.2010

Name :	Mr. Anupam Suryakant Kothari
Designation :	Director
Address :	PARC St. Roman, 7, Avenue De Saint, Roman, Monte Carlo, Monaco - 98000
Date of Birth/Age :	22.06.1967
Date of Appointment :	20.09.2004
DIN No:	01696556

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U18101KA2002PTC030686	FIBRES AND FABRICS INTERNATIONAL PRIVATE LIMITED	Managing director	27-06-02	27-06-02	-	Active	NO

Name :	Laxmi Narayan Gaur
Designation :	Additional Director
Address :	14-69, 8 MN Raj Building 52 – CRS, 4 – BLK, Bangalore – 560010, Karnataka, India.
Date of Birth/Age :	21.10.1956
Date of Appointment :	21.12.2009
DIN No:	00167068

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U18101KA2007PTC042723	Doctor Denim Textiles Private Limited	Director	07-05-07	07-05-07	-	Active	YES
2	U18101KA2002PTC030686	FIBRES AND FABRICS INTERNATIONAL PRIVATE LIMITED	Director	30-09-10	21-12-09	-	Active	NO

Name :	Jacqueline Antonette Thomas
Designation :	Alternate Director
Address :	#428, 8^th D Main, 4^th Cross HRBR Layout, Banasawadi Extension, Bangalore – 560043, Karnataka, India
Date of Birth/Age :	28.04.1973
Date of Appointment :	12.01.2007
DIN No:	00926874

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U18101KA2002PTC030686	FIBRES AND FABRICS INTERNATIONAL PRIVATE LIMITED	Alternate director	12-01-07	14-08-06	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Anupam Suryakant Kothari	10000
Jacqueline Antonette Thomas	01
Total	10001

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Readymade Garments

Products :

Item Code(ITC Code)	Product Description
611420	Other Garments of cotton, knitted or crocheted

Exports :

Products :

Readymade Garments

Countries :

Not Divulged

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Actual Production
Garments	Pcs	3607975

GENERAL INFORMATION

Suppliers :

· Brilliant label Manufacturing. Limited

· Cappio Tessuti Sri – Italy

· LTK Enterprises Company. –hongkong

· Hmastec SRL – Italy

· Modus SRl – Italy

· Muscat Threads Mills Saog – Oman

· M And Y And Company – Hongkong

· Van Zone Mode Nederiand BV

· YKK (UK) Limited. – London

· Weavable – UK

· Sixty SPA – Italy

· Blue Dart Express Limited

· Asha Deep

· B C Pushpa

· Alice Stores

· A R Tech

· Ideal industrial Solution

· Mahendra Industrial Suppliers

· R R Enterprises

· Krishna

• S G Enterprises

Customers :

• Wholesalers
• Retailers
• End Users

No. of Employees :

100 (Approximately)

Bankers :

· The Hong Kong and Shanghai Banking Corporation limited, No.7, Mahatma Gandhi Road, Bangalore – 560001, Karnataka, India

· ABN Amro Bank N.V, Residency Road, Bangalore – 560025, Karnataka, India

Rs in Millions

Facilities :

Secured Loan	As on 31.03.2010	As on 31.03.2009
Packing Credit Loan	138.756	5.205
Total	138.756	5.205
Unsecured Loan	As on 31.03.2010	As on 31.03.2009
Loan from Director	143.455	119.677
Loan from a concern in which director’s are interested	0.000	202.819
Total	143.455	322.496

Banking Relations :	--
Auditors :
Name :	ASA and Associates Chartered Accountant
Address :	A – 2 Ground Floor, Akruti Antara Apartment, No. 11/1 Haudin Road, Banglore – 560042, Karnataka, India
Tel. No.:	91-80-41510751
PAN No :	AAASA4690A
Associates:	· Tintoria Astico S.R.I · Fibers and Fabrics International Private Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10001	Equity Shares	Rs.10/-each	Rs. 0.100 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		0.100	0.100	0.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2169.967	1234.695	947.301
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2170.067	1234.795	947.401
LOAN FUNDS
1] Secured Loans		138.756	5.205	319.125
2] Unsecured Loans		143.455	322.496	168.254
TOTAL BORROWING		282.211	327.701	487.379
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2452.278	1562.496	1434.780
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1236.202	1431.131	568.899
Capital work-in-progress		46.599	0.842	25.669
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		11.186	11.187	11.187
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	713.352	431.632	625.567
	Sundry Debtors	499.428	310.762	364.890
	Cash & Bank Balances	152.854	66.432	84.647
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	545.409	236.690	340.899
Total Current Assets		1911.043	1045.516	1416.003
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	195.318	627.881	103.799
	Other Current Liabilities	250.384	206.013	312.396
	Provisions	307.050	92.287	170.813
Total Current Liabilities		752.752	926.181	587.008
Net Current Assets		1158.291	119.335	828.995
MISCELLANEOUS EXPENSES		0.000	0.000	0.030
TOTAL		2452.278	1562.495	1434.780

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	4292.504	4284.979	3392.243
		Other Income	97.125	127.378	174.585
		TOTAL (A)	4389.629	4412.357	3566.828
Less	EXPENSES
		Materials Consumed	1641.831	1933.178	1539.506
		Direct Expenses	389.627	318.082	182.757
		Administration and Other Expenses	876.750	822.382	574.983
		Selling and Distribution Expenses	109.648	645.532	63.352
		Preliminary Expenses	0.000	0.030	0.071
		Accretion / (Decretion) to stock	[89.012]	20.847	(171.490)
		Prior Period Adjustments	0.401	0.188	(6.334)
		TOTAL (B)	2929.245	3740.239	2182.845
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1460.384	672.118	1383.983
Less	FINANCIAL EXPENSES (D)		18.410	33.252	12.797
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1441.974	638.866	1371.186
Less/ Add	DEPRECIATION/ AMORTISATION (F)		297.894	224.028	146.104
	PROFIT BEFORE TAX (E-F) (G)		1144.080	414.838	1225.082
Less	TAX (H)		208.809	53.437	141.205
	PROFIT AFTER TAX (G-H) (I)		935.271	361.401	1083.877
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1038.843	787.589	703.862
Less	APPROPRIATIONS
		Transfer to General Reserve		36.140	159.711
		Dividend		63.256	718.354
		Tax on Dividend		10.750	122.084
	BALANCE CARRIED TO THE B/S		1974.115	1038.844	787.590
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	3679.954	3.665	2.963
	TOTAL EARNINGS		3679.954	3.665	2.963
	IMPORTS
		Raw Materials and Components of Spare Parts	1991.015	1886.831	1737.523
		Capital Goods	127.671	551.503	181.216
	TOTAL IMPORTS		2118.686	2438.334	1918.739
	Earnings Per Share (Rs.)		93,518	36,137	108,377

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	21.30	8.19	30.38
Net Profit Margin (PBT/Sales)	(%)	26.65	9.68	36.11
Return on Total Assets (PBT/Total Assets}	(%)	35.82	5.70	60.59
Return on Investment (ROI) (PBT/Networth)		0.52	0.33	1.29
Debt Equity Ratio (Total Liability/Networth)		0.47	1.01	1.03
Current Ratio (Current Asset/Current Liability)		2.53	1.13	2.14

LOCAL AGENCY FURTHER INFORMATION

FORM 8:

This form is for	Modification of charge
Charge identification number of the modified	80004066
Corporate identity number of the company	U18101KA2004PTC034722
Name of the company	JEANS KNIT PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	21, E1 2^nd Phase, Industrial Area, Peenya, Bangalore – 560058, Karnataka
Type of charge	Book Debts Others
Particular of charge holder	The Hong Kong and Shanghai Banking Corporation Limited No. 07 Mahatma Gandhi Road, Bangalore – 560001, Karnataka, India. janardhanbhat@hsbc.co.in
Date of instrument Creating the charge	27.04.2011
Amount secured by the charge	Rs 700.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interests shall be payable by the company on the banking facilities as per Bank’s tariff, subject however that the Bank shall have the right to change the rate of interests after giving notice to the company. Terms of Repayment In consideration of banking facilities sanctioned by the bank to the company, the company has hypothecated and charged to the bank on present and future Book debts and Borrower’s Stocks of the stores and monies receivable to secure the repayments of the advance ( Working capital facility) together with interest cost and all other charges. Margin The Company shall maintain such margin as may be specified by the bank from time to time. Extent and Operation of the charge In case the company fails to fulfill obligation under the agreement. The bank shall entitled to take possession of the hypothecated stocks, book debts and receivable and sell them by public auction or private contract and utilize the proceeds in full or parts settlements of its claims. Others First pari passu charged by way of hypothecation deed dated 27.04.2011 for Rs. 700.000 Million on book debts and stocks and receivables to secure the fund based and non based facilities.
Short particulars of the property charged	First pari passu charged by way of Hypothecation Deed dated 27.04.2011 for Rs. 700.000 Million on Book Debts and Stocks and Receivables to secure the Fund Based and Non Based Facilities.

FIXED ASSETS

· Goodwill

· Leasehold Land

· Improvements to Buildings

· Garments Production Machines

· Garment Process Plant

· Infrastructure

· Water Pollution Control Equipment

· Plant and Machinery

· Material Handling Equipment

· Cut Room Equipment

· Electrical Fittings

· Office Equipments

· IT Equipments

· Software

· Furniture and Fixtures

· 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.49.67
UK Pound	1	Rs.76.50
Euro	1	Rs.66.98

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		61

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.