MIRA INFORM REPORT

Report Date :

18.04.2012

IDENTIFICATION DETAILS

Name :	KOTHARI HOSIERY FACTORY PRIVATE LIMITED
Registered Office :	29, Strand Road, 2^nd Floor, Kolkata – 700 001, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.08.1988
Com. Reg. No.:	21-044899
Capital Investment / Paid-up Capital :	Rs.15.818 Millions
CIN No.: [Company Identification No.]	U17111WB1988PTC044899
TAN No.: [Tax Deduction & Collection Account No.]	CALK00255D
PAN No.: [Permanent Account No.]	AADFK1140N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Hosiery Products.
No. of Employees :	25 (Approximately)

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 630000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is well-established and reputed 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

INFORMATION PARTED BY

Name :	Mr. Satinath Roy
Designation :	Accountant
Contact No.:	91-9883812222
Date :	11.04.2012

LOCATIONS

Registered Office :	29, Strand Road, 2^nd Floor, Kolkata – 700 001, West Bengal, India
Tel. No.:	91-33-22439371/ 22439372/ 22439373/ 22439374/ 22439375/ 22697052/ 22689904
Mobile No.:	91-9883812222 (Mr. Satinath Roy)
Fax No.:	91-33-22433109
E-Mail :	shriksna@cal.vsnl.net.in shrikhna@vsnl.net.in
Website :	http://www.kotharihosr.com
Area :	480 sq. ft.
Location :	Owned
Factory :	24, Chawal Pathy Road, Kolkata, West Bengal, India
Area :	10000 sq. ft.
Location :	Owned

DIRECTORS

As on 30.09.2011

Name :

Mr. Dau Dayal Kothari

Designation :

Director

Address :

Rajshree, 6, Hasting Park Road, Kolkata – 700 027, West Bengal, India

Date of Birth/Age :

05.12.1934

Date of Appointment :

22.09.1999

DIN No.:

00233255

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	U21016WB1969PTC027630	SKCC Paper and Board Private Limited	Director	22-12-69	22-12-69	-	Active	NO
2	U21029WB1972PTC028494	Shree Krishna Packaging Company Private Limited	Director	23-08-72	23-08-72	-	Active	NO
3	U18109WB1976PTC030581	Kothari Knitting Mills Private Limited	Director	14-06-76	14-06-76	-	Active	NO
4	U51109WB1948PLC017081	Sri Krishna Commercial Company Limited	Director	27-06-84	27-06-84	-	Active	NO
5	U91990MH1977GAP019958	Federation of Hosiery Manufacturers Association of India	Director	25-04-90	25-04-90	25-04-10	Active	NO
6	L24119OR1962PLC007123	Jayshree Chemicals Limited	Director	23-03-92	23-03-92	-	Active	NO
7	U51909WB1995PTC074387	Annant Shree Viniyog Private Limited	Director	20-09-95	20-09-95	-	Active	NO
8	U65921WB1999PTC090343	Shree Krishna Hosiery Private Limited	Director	22-09-99	22-09-99	-	Active	NO
9	U17111WB1988PTC044899	Kothari Hosiery Factory Private Limited	Director	22-09-99	22-09-99	-	Active	NO
10	U51909WB2009PTC134052	Kothari Distribution Private Limited	Director	20-03-09	20-03-09	-	Active	NO
11	U74999MH2010PTC209384	Mudit Mohan Tradecom Private Limited	Director	25-10-10	25-10-10	-	Active	NO
12	U45400WB2011PTC167043	Kothari Bhaipa Private Limited	Director	01-09-11	01-09-11	-	Active	NO

Name :

Mr. Bithal Das Kothari

Designation :

Director

Address :

Rajshree, 6, Hasting Park Road, Kolkata – 700 027, West Bengal, India

Date of Birth/Age :

21.03.1945

Date of Appointment :

01.08.1988

DIN No.:

00233474

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	U21016WB1969PTC027630	SKCC Paper and Board Private Limited	Director	22-12-69	22-12-69	-	Active	NO
2	U21029WB1972PTC028494	Shree Krishna Packaging Company Private Limited	Director	23-08-72	23-08-72	-	Active	NO
3	U18109WB1976PTC030581	Kothari Knitting Mills Private Limited	Director	14-06-76	14-06-76	-	Active	NO
4	U51109WB1948PLC017081	Sri Krishna Commercial Company Limited	Director	27-06-84	27-06-84	-	Active	NO
5	U17111WB1988PTC044899	Kothari Hosiery Factory Private Limited	Director	01-08-88	01-08-88	-	Active	NO
6	U51909WB1995PTC074387	Annant Shree Viniyog Private Limited	Director	20-09-95	20-09-95	-	Active	NO
7	U18101WB1999PTC090683	Kothari Processors Private Limited	Director	15-07-02	15-07-02	15-02-07	Active	NO
8	U17200WB2007PLC119888	West Bengal Hosiery Park Infrastructure Limited	Director	18-10-07	18-10-07	-	Active	NO
9	U51109WB2006PTC108524	Jaltarang Vinimay Private Limited	Director	01-04-09	01-04-09	-	Active	NO
10	U51109WB1947PTC015814	Mehrotra and Company Private Limited	Director	01-04-09	01-04-09	-	Active	NO
11	U91990MH1977GAP019958	Federation of Hosiery Manufacturers Association of India	Director	25-04-10	25-04-10	-	Active	NO

Name :

Mr. Man Mohan Kothari

Designation :

Director

Address :

Rajshree, 6, Hasting Park Road, Kolkata – 700 027, West Bengal, India

Date of Birth/Age :

12.12.1968

Date of Appointment :

01.04.2008

DIN No.:

00233353

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	U18101WB1999PTC090683	Kothari Processors Private Limited	Director	04-09-00	04-09-00	15-02-07	Active	NO
2	U17111WB1988PTC044899	Kothari Hosiery Factory Private Limited	Director	01-04-08	01-04-08	-	Active	NO

Name :

Mr. Kishore Kumar Kothari

Designation :

Director

Address :

Rajshree, 6, Hasting Park Road, Kolkata – 700 027, West Bengal, India

Date of Birth/Age :

14.09.1972

Date of Appointment :

01.04.2008

DIN No.:

00239119

Other Directorship :

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	U65921WB1999PTC090343	Shree Krishna Hosiery Private Limited	Director	22-09-99	22-09-99	Active	NO
2	U51909WB1995PTC074387	Annant Shree Viniyog Private Limited	Director	03-12-01	03-12-01	Active	NO
3	U17111WB1988PTC044899	Kothari Hosiery Factory Private Limited	Director	01-04-08	01-04-08	Active	NO
4	U51909WB2009PTC134052	Kothari Distribution Private Limited	Director	20-03-09	20-03-09	Active	NO

Name :

Mr. Keshav Kumar Kothari

Designation :

Director

Address :

Rajshree, 6, Hasting Park Road, Kolkata – 700 027, West Bengal, India

Date of Birth/Age :

16.01.1970

Date of Appointment :

01.04.2008

DIN No.:

00233394

Other Directorship :

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	U51109WB1948PLC017081	Sri Krishna Commercial Company Limited	Director	31-05-99	31-05-99	Active	NO
2	U17111WB1988PTC044899	Kothari Hosiery Factory Private Limited	Director	01-04-08	01-04-08	Active	NO

Name :

Mr. Krishna Kumar Kothari

Designation :

Director

Address :

Rajshree, 6, Hasting Park Road, Kolkata – 700 027, West Bengal, India

Date of Birth/Age :

13.10.1957

Date of Appointment :

01.04.2008

DIN No.:

00233174

Other Directorship :

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	L01132WB1874PLC000281	Mothola Company Limited	Director	19-08-92	19-08-92	Active	NO
2	U51109WB1997PTC082660	SKC Trade and Finance Private Limited	Director	21-01-97	21-01-97	Active	NO
3	U65921WB1999PTC090343	Shree Krishna Hosiery Private Limited	Director	22-09-99	22-09-99	Active	NO
4	U51909WB1995PTC074387	Annant Shree Viniyog Private Limited	Director	03-12-01	03-12-01	Active	NO
5	U17111WB1988PTC044899	Kothari Hosiery Factory Private Limited	Director	01-04-08	01-04-08	Active	NO
6	U51909WB2009PTC134052	Kothari Distribution Private Limited	Director	20-03-09	20-03-09	Active	NO
7	U17120WB2011PTC169612	Bumble Bee Garments Private Limited	Director	18-11-11	18-11-11	Active	NO

Name :

Mr. Kamal Kumar Kothari

Designation :

Director

Address :

Rajshree, 6, Hasting Park Road, Kolkata – 700 027, West Bengal, India

Date of Birth/Age :

05.06.1959

Date of Appointment :

01.04.2008

DIN No.:

00233217

Other Directorship :

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	U51109WB1948PLC017081	Sri Krishna Commercial Company Limited	Director	31-05-99	31-05-99	Active	NO
2	U65921WB1999PTC090343	Shree Krishna Hosiery Private Limited	Director	22-09-99	22-09-99	Active	NO
3	U51909WB1995PTC074387	Annant Shree Viniyog Private Limited	Director	03-12-01	03-12-01	Active	NO
4	U21016WB1969PTC027630	Skcc Paper and Board Private Limited	Director	01-04-08	01-04-08	Active	NO
5	U17111WB1988PTC044899	Kothari Hosiery Factory Private Limited	Director	01-04-08	01-04-08	Active	NO
6	U51909WB2009PTC134052	Kothari Distribution Private Limited	Director	20-03-09	20-03-09	Active	NO
7	U74999MH2010PTC209384	Mudit Mohan Tradecom Private Limited	Director	25-10-10	25-10-10	Active	NO

Name :

Mr. Hari Mohan Kothari

Designation :

Director

Address :

Rajshree, 6, Hasting Park Road, Kolkata – 700 027, West Bengal, India

Date of Birth/Age :

05.10.1974

Date of Appointment :

01.04.2008

DIN No.:

00233318

Other Directorship :

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	U18101WB1999PTC090683	Kothari Processors Private Limited	Director	04-09-00	04-09-00	Active	NO
2	U17111WB1988PTC044899	Kothari Hosiery Factory Private Limited	Director	01-04-08	01-04-08	Active	NO

KEY EXECUTIVES

Name :	Mr. Satinath Roy
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Dau Dayal Kothari	910
Bithal Das Kothari	910
Man Mohan Kothari	116050
Kishore Kumar Kothari	98200
Keshav Kumar Kothari	143750
Krishna Kumar Kothari	98200
Kamal Kumar Kothari	98250
Hari Mohan Kothari	116000
Dwarka Das Kothari (HUF)	383400
Dau Dayal Kothari (HUF)	231700
Bithal Das KOthari (HUF)	294200
Kalpana Maloo	10
Kavita Binani	10
Krishna Kanta Bagri	15
Savita Kothari	50
Kirti Kothari	50
Rohit Kothari	50
Sushila Kothari	15
Srikanta Kothari	54
Total	1581824

As on 09.03.2012

Names of Allottees	No. of Shares
Subhas Travelings (Private) Limited	27500
Earth Developers (Private) Limited	25000
Eshanputra Commercial (Private) Limited	27500
Cradle Traders (Private) Limited	30000
Tejaswani Commotrade (Private) Limited	25000
DDS Consultants (Private) Limited	13500
Carnation Commercial (Private) Limited	21500
Khazana Merchandise (Private) Limited	25000
Basundhara Marcom (Private) Limited	27500
Subhakari Mercantile Private Limited	27500
Total	250000

As on 30.11.2011

Names of Allottees	No. of Shares
Dau Dayal Kothari – Karta	1853600
Bithal Das Kothari – Karta	2353600
Dwarka Das Kothari – Karta	3067200
Krishna Kumar Kothari	785600
Kamal Kumar Kothari	786000
Kishore Kumar Kothari	785600
Man Mohan Kothari	928400
Hari Mohan Kothari	928000
Keshav Kumar Kothari	1150000
Dau Dayal Kothari	7280
Bithal Das Kothari	7280
Kalpana Maloo	80
Kavita Binani	80
Krishna Kanta Bagri	120
Savita Kothari	400
Kirti Kothari	400
Rohit Kothari	400
Sushila Kothari	120
Srikanta Kothari	432
Total	12654592

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Hosiery Products.

Products :

v Knitted Bed Sheets

v Blankets

v T-Shirts

v Casual Wear

v Winter Wear

v Briefs

v Socks

v Vests

v Other Hosiery Goods

Item Code No. (ITC Code)	Product Description
610711.01	Gents Undergarment
610821.01	Ladies Undergarment
610910.02	T-Shirts

Exports :

Products :

v Knitted Bed Sheets

v Blankets

v T-Shirts

v Casual Wear

v Winter Wear

v Briefs

v Socks

v Vests

v Other Hosiery Goods

Countries :

Dubai

Imports :

Products :

Raw Materials

Countries :

Germany

Terms :

Selling :

L/C and Advance

Purchasing :

L/C and Advance

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Than	Kgs.	N.A.	N.A.	1310006
Hosiery Goods	Pcs.	N.A.	N.A.	10279368

Production is inclusive of internal consumption of year.

License and installed capacities is certified by the management.

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and Manufacturer

No. of Employees :

25 (Approximately)

Bankers :

v UCO Bank, Burranbazar Branch, 1, Sambhu Mullick Lane, Kolkata – 700 007, West Bengal, India

v Standard Chartered Bank, Kolkata, West Bengal, India

v Union Bank of India, Mumbai, Maharashtra, India

v State Bank of India

v HDFC Bank

v United Bank of India

v Citibank N.A., Kanak Building, 41, Chowringhee Road, Kolkata – 700 071, West Bengal, India

v ICICI Bank

Facilities :

Secured Loans :	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
From a Schedule Bank (Secured by hypothecation of stock in trade, Book debts, Plant and Machinery and Other Assets)
Cash Credit Account	73.022	76.912
Letter of Credit	9.072	0.000
Long Term Loan	0.000	0.988
Long Term Loan A/c Car
From HDFC Bank	0.043	0.000
From ICICI Bank	0.497	0.000
From Kotak Mahindra Prime Limited	0.384	0.000
Total	83.018	77.900

Unsecured Loans :	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
From Body Corporate	0.554	0.554
From Share Holders	5.169	5.254
From Directors	0.720	3.243
Total	6.443	9.051

Banking Relations :	--
Auditors :
Name :	Shah and Khandelwal Chartered Accountants
Address :	1/A, Vansittart Row, Kolkata - 700 001, West Bengal, India
Tel. No.:	91-33-22480826/ 0813
Income-tax PAN of auditor or auditor's firm :	ABSFS6855J
Associates/Subsidiaries :	Shree Krishna Manufacturing Company Address: 1 Chitpur Ghat Road, Kolkata - 700 002, West Bengal, India Shree Krishna Hosiery

CAPITAL STRUCTURE

After 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14486416	Equity Shares	Rs.10/- each	Rs.144.864 Millions

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1581824	Equity Shares	Rs.10/- each	Rs.15.818 Millions

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		15.818	15.818	15.818
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		141.733	90.122	54.698
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		157.551	105.940	70.516
LOAN FUNDS
1] Secured Loans		83.018	77.900	66.825
2] Unsecured Loans		6.443	9.051	16.184
TOTAL BORROWING		89.461	86.951	83.009
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		247.012	192.891	153.525
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		44.592	36.528	20.806
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.005	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	183.712	133.083	103.637
	Sundry Debtors	64.815	62.104	42.265
	Cash & Bank Balances	6.141	7.684	5.523
	Other Current Assets	4.105	3.828	3.080
	Loans & Advances	9.733	7.781	19.370
Total Current Assets		268.506	214.480	173.875
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	54.201	53.888	38.959
	Other Current Liabilities	4.959	1.893	0.000
	Provisions	6.991	2.456	2.377
Total Current Liabilities		66.151	58.237	41.336
Net Current Assets		202.355	156.243	132.539
MISCELLANEOUS EXPENSES		0.060	0.120	0.180
TOTAL		247.012	192.891	153.525

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	667.185	507.399	397.548
		Other Income	5.032	4.417	2.579
		TOTAL (A)	672.217	511.816	400.127
Less	EXPENSES
		Cost of Goods Sold	571.505	9.903	(9.900)
		Raw Material Consumed		256.692	216.413
		Manufacturing Expenses		97.463	81.386
		Employees Cost		15.662	10.382
		Administrative Expenses		27.708	23.111
		Selling and Overhead Expenses		25.820	20.648
		Directors Remuneration		6.600	6.600
		Donation		2.546	0.016
		Loss on Sale fixed assets		0.799	0.000
		TOTAL (B)	571.505	443.193	348.656
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		100.712	68.623	51.471
Less	INTEREST (D)		15.362	13.413	11.668
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		85.350	55.210	39.803
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.954	3.421	2.669
	PROFIT BEFORE TAX (E-F) (G)		80.396	51.789	37.134
Less	TAX (H)		27.000	15.000	12.730
	PROFIT AFTER TAX (G-H) (I)		53.396	36.789	24.404
Less	Income Tax for Earlier Year		1.785	1.365	0.035
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		60.122	24.698	0.329
Less	APPROPRIATIONS
		Transferred to General Reserve	100.000	0.000	0.000
	BALANCE CARRIED TO THE B/S		11.733	60.122	24.698
	EARNINGS IN FOREIGN CURRENCY
		FOB Realisation basis	1.665	0.123	0.000
	TOTAL EARNINGS		1.665	0.123	0.000
	IMPORTS
		Raw Materials	0.000	0.069	0.000
		Stores & Spare Parts	0.338	0.418	0.000
		Capital Goods	0.000	0.000	0.736
	TOTAL IMPORTS		0.338	0.487	0.736
	Earnings Per Share (Rs.)		32.63	23.26	15.43

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	7.94	7.19	6.10
Net Profit Margin (PBT/Sales)	(%)	12.05	10.21	9.34
Return on Total Assets (PBT/Total Assets}	(%)	25.68	20.63	19.07
Return on Investment (ROI) (PBT/Networth)		0.51	0.49	0.53
Debt Equity Ratio (Total Liability/Networth)		0.99	1.37	1.76
Current Ratio (Current Asset/Current Liability)		4.06	3.68	4.21

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes/ No
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

OPERATIONS:

The Company has once again posted an impressive performance with all round growth inspite of losing one full month's sale following imposition of Excise duty on Hosiery and Readymade products.

The net turnover at Rs.667.185 millions during the year ended 31^st March, 2011 has registered a growth of sales by 31.5%. The pre-tax profit at Rs.80.396 millions has shown an increase of 55.24% with profit after tax at Rs.51.611 millions as showing a growth of 45.69% over the last financial yew. The earning per shore stands at Rs.32.63.

The company continues its diversification Programme in garments and children's wears and has been successful in achieving appreciable increase in sales in 4 (four) of such products.

The work of the Salt Lake Project at Salt Lake, Sector V is progressing smoothly and the Third Floor slab has already been laid. The company is hopeful that by end of 2012 the building will be ready for occupation.

The effect of imposition of excise duty on Branded items by the Union Budget 2011-2012 is uncertain. The unprecedented rise and fall in yarn prices coupled with the increase in cost following imposition of excise duty might affect adversely the growth of sales in garments and children's wears sector till introduction of GST. However, the effect on sales of Mercerised and Winter goods should be limited.

CONTINGENT LIABILITIES NOT PROVIDED FOR: (AS ON 31.03.2011)

In respect of Bank Guarantee given by UCO Bank (by keeping fixed deposit as security)

i) For Sales Tax Department Delhi for Rs.0.300 million.

ii) For letter of credit of Rs.24.500 millions.

iii) To president of India in regard to Custom Duty.

iv) Fro Sales Tax Department Rs.15.200 millions.

Bankers Charges Report as per Registry

Corporate identity number of the company	U17111WB1988PTC044899
Name of the company	KOTHARI HOSIERY FACTORY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	29, Strand Road, 2^nd Floor, Kolkata – 700 001, West Bengal, India E-Mail: shriksna@vsnl.net.in
This form is for	Modification of charge
Charge identification number of the modified	10294576
Type of charge	Immovable Property
Particular of charge holder	Citibank N.A., Kanak Building, 41, Chowringhee Road, Kolkata – 700 071, West Bengal, India E-Mail: roc@sdpa.in
Nature of description of the instrument creating or modifying the charge	Memorandum of Entry.
Date of instrument Creating the charge	29.08.2011
Amount secured by the charge	Rs.160.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: As per sanction terms and as may be decided by the bank and company mutually from time to time. Terms of Repayment: Repayable on demand, annually renewable. Margin: Borrower shall at all times during the continuance of the security maintain a sufficient amount to provide the margin of security as may from time to time advised by the bank. Extent and Operation of the charge: First exclusive charge on property admeasuring 24.67 cottahs of factory land and building located at 24, Chaulpatti, Kolkata – 700 010 in favour of Citibank N.A Kolkata for the repayment of all monies in respect of the credit facility, including outstanding balance and also all interest, costs, charges and expenses.
Short particulars of the property charged	Property admeasuring 24.67 cottahs of factory land and building located at 24, Chaulpatti, Kolkata – 700 010
Particulars of the present modification	By this modification the overall limit remain the same at Rs.160.000 millions, and charge is also further secured by property admeasuring 24.67 cottahs of factory land and building located at 24, Chaulpatti, Kolkata – 700 010 All other terms and conditions continue to remain as before in full force and effect.

FIXED ASSETS:

v Leasehold Land

v Land

v Factory Building

v Office Space

v Furniture and Fixtures

v Silver Utensil

v Office Equipments

v Plant and Machinery

v Motor Car and Scooter

v Computer Machine

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.51.63
UK Pound	1	Rs.81.94
Euro	1	Rs.67.65

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	YES
--AFFILIATION	YES/NO	YES
--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.