MIRA INFORM REPORT

Report Date :

18.04.2012

IDENTIFICATION DETAILS

Name :	ZONAC KNITTING MACHINES PRIVATE LIMITED
Registered Office :	C-64, 1^st Floor, Ashok Vihar, Phase – I, New Delhi – 110052
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	10.03.1988
Com. Reg. No.:	030908
Capital Investment / Paid-up Capital :	Rs.18.839 Millions
CIN No.: [Company Identification No.]	U74899DL1988PTC030908
TAN No.: [Tax Deduction & Collection Account No.]	DELZ00390F
PAN No.: [Permanent Account No.]	AAACZ0038N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Smart and Trendy Knitted Hosiery Garments and Woven Hosiery Garments for Men, Women and Kids.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 290000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and 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 :	C-64, 1^st Floor, Ashok Vihar, Phase – I, New Delhi – 110052, India
Tel. No.:	91-11-27691195
Fax No.:	91-11-27691188
E-Mail :	bonjour@bonjourgroup.net zonac@bonjourgroup.com webcare@bonjourgroup.net
Website :	http://www.socks-India.com
Factory / Head Office:	Plot No. D-1, Industrial Area, Site B, Surajpur Greater Noida-201307, Uttar Pradesh, India
Tel. No.:	91-120-2561115/2561116
Fax No.:	91-120-2561114

DIRECTORS

As on 27.09.2011

Name :

Mr. Raj Kumar Jain

Designation :

Managing Director

Address :

C-64, 1^st Floor, Ashok Vihar, Phase – I, New Delhi – 110052, India

Date of Birth/Age :

28.12.1964

Date of Appointment :

10.03.1988

Din No.:

00098271

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	U17111DL2005PTC132519	SOGO FASHIONS PRIVATE LIMITED	Director	31-01-05	31-01-05	-	Active	NO
2	U74899DL1988PTC030908	ZONAC KNITTING MACHINES PRIVATE LIMITED	Managing director	10-03-07	10-03-07	-	Active	NO
3	U18204DL2007PTC164229	MALVIKA GARMENTS EXIM PRIVATE LIMITED	Director	31-05-07	31-05-07	01-03-11	Active	NO
4	U72300DL2007PTC164217	N.K.INFOLINE PRIVATE LIMITED	Director	31-05-07	31-05-07	-	Strike off	NO

Name :

Mr. Ajay Kumar Jain

Designation :

Director

Address :

C-64, 1^st Floor, Ashok Vihar, Phase – I, New Delhi – 110052, India

Date of Birth/Age :

24.10.1966

Date of Appointment :

28.02.1994

Din No.:

00098243

Name :

Mr. Nihal Chand Jain

Designation :

Director

Address :

C-64, 1^st Floor, Ashok Vihar, Phase – I, New Delhi – 110052, India

Date of Birth/Age :

19.07.1942

Date of Appointment :

28.02.1994

Din No.:

00098296

Name :

Mrs. Kusumlata Jain

Designation :

Director

Address :

C-64, 1^st Floor, Ashok Vihar, Phase – I, New Delhi – 110052, India

Date of Birth/Age :

22.02.1948

Date of Appointment :

10.03.1988

Din No.:

00098321

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2011

Names of Shareholders	No. of Shares
Ajay Kumar Jain	220000
Raj Kumar Jain	370000
Nihal Chand Jain	200000
Kusumlata Jain	128900

As on 22.03.2012

Names of Allottees	No. of Shares
Vijender Kishan Gupta	56750

As on 27.09.2011

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

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Smart and Trendy Knitted Hosiery Garments and Woven Hosiery Garments for Men, Women and Kids.

Products :

PRODUCT DESCRIPTION	ITEM CODE
Textiles Handloom Power Looms	0120

· Boys Socks

· Kids Socks

· Mens Sport Socks

· Boys Sport Socks

· Cotton Socks

· Mens Socks

· Baby Socks

· Girl Socks

· Children Socks

· Slipper Socks

· Tube Socks

· Knee Socks

· Wool Socks

· Ladies Socks

· Fancy Kids Socks

· Child Socks

· Cotton Tights

· Sport Socks

· School Socks

· Argyle Socks

· Health Socks

· Casual Socks

· Nike Socks

· Running Socks

Brand Names :

· “BONJOUR INTERNATIONAL”

· “BONGIO”

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Punjab National Bank, IGI New Delhi, India

· Punjab National Bank, ICD, TKD, New Delhi, India

· Bank of India, Ballard Estate, Mumbai, Maharashtra, India

· Canara Bank, Shakti Nagar, New Delhi-110007, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Banks Financial Institutions	128.407	93.847
Vehicles Loans	1.394	2.115
Total	129.801	95.962
Unsecured Loan
From Directors	2.618	3.355
From Family Members and Relatives	10.905	14.170
From Corporate	10.244	0.000
Total	23.767	17.525

Banking Relations :	--
Auditors :
Name :	Vinay Jain and Associates Chartered Accountants
Address :	18/12, Wea Arya Samah Road, Karol Bagh, New Delhi-110005, India
Tel. No.:	91-11-28753909 [Office] 91-11-26854213 [Residential]
Mobile No.:	91-9811228611
Fax No.:	91-11-28756275
E-Mail :	vjainca@rediffmai.com
Website:	http://www.vjainca.com
Pan No.:	AADFV4563C

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1843900	Equity Shares	Rs.10/- each	Rs.18.439 Millions
	Share Application Money		Rs.0.400 Million
	Total		Rs.18.839 Millions

As on 27.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1940650	Equity Shares	Rs.10/- each	Rs.19.407 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		18.839	18.439	11.700
2] Share Application Money		0.000	0.000	6.039
3] Reserves & Surplus		54.709	37.157	25.282
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		73.548	55.596	43.021
LOAN FUNDS
1] Secured Loans		129.801	95.962	84.664
2] Unsecured Loans		23.767	17.525	8.514
TOTAL BORROWING		153.568	113.487	93.178
DEFERRED TAX LIABILITIES		3.177	4.215	3.535
TOTAL		230.293	173.298	139.734
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		102.480	81.932	70.953
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		13.000	13.000	13.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	101.269	57.294	40.495
	Sundry Debtors	40.675	56.232	43.702
	Cash & Bank Balances	6.577	8.511	5.329
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	11.722	4.997	3.260
Total Current Assets		160.243	127.034	92.786
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors		41.685	31.219
	Other Current Liabilities	41.666	5.150	4.621
	Provisions	3.764	1.833	1.165
Total Current Liabilities		45.430	48.668	37.005
Net Current Assets		114.813	78.366	55.781
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		230.293	173.298	139.734

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	343.629	303.736
		Other Income	0.635	0.628
		TOTAL (A)	344.264	304.364	245.257
Less	EXPENSES
		Raw Material Consumed	283.149	225.699
		Manufacturing Expenses	21.243	19.924
		Employees Cost	18.703	13.297
		Administrative Expenses	2.811	2.875	225.627
		Selling and Distribution Expenses	30.949	23.614
		Increase / Decrease in Stocks	(48.246)	(11.598)
		Extra Ordinary Items	(0.083)	(0.182)
		TOTAL (B)	308.526	273.629	225.627
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		35.738	30.735	19.630
Less	FINANCIAL EXPENSES (D)		12.107	13.749	9.627
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		23.631	16.986	10.003
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.945	8.835	4.898
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		12.686	8.151	5.105
Less	TAX (H)		2.734	2.575	2.852
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		9.952	5.575	2.253
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		20.956	15.381	13.128
	BALANCE CARRIED TO THE B/S		30.908	20.956	15.381
	Earnings / (Loss) Per Share (Rs.)		5.40	--	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.89	1.83	0.92
Net Profit Margin (PBT/Sales)	(%)	3.69	2.68	NA
Return on Total Assets (PBT/Total Assets}	(%)	4.83	3.90	3.12
Return on Investment (ROI) (PBT/Networth)		0.17	0.15	0.12
Debt Equity Ratio (Total Liability/Networth)		2.70	2.92	3.03
Current Ratio (Current Asset/Current Liability)		3.53	2.61	2.51

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	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last two 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	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
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

FUTURE OUTLOOK:-

As a part of Strategies, various modalities are to be initiated for improved plant utilization, increase in the business volume. The Central Government has come out with major concessions in the union budget, through substantial changes in excise duty structure, which would give the industry an edge over the prices of imported fabrics, yarns and competitiveness in the international market.

The directors are hopeful for improved price realization due to optimization in production costs, improved inventory management, less down time, improved efficiency in filtration and packaging areas, consumption norms for power, fuel, de- bottlenecking of the plant and improvement in quality/ designs by way of continues up gradation.

MARKETING ARRANGEMENT:-

The company has succeeded in establishing its brand in the domestic market and the company has established a strong business base on which future plans can be built up. To keep pace with the changing scenario, the company continues its efforts for upgrading and automation of its plant and machines gradually, introduction of bench mark techniques which are necessary for meeting the competition effectively.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	10056388
Corporate identity number of the company	U74899DL1988PTC030908
Name of the company	ZONAC KNITTING MACHINES PVT LTD
Address of the registered office or of the principal place of business in India of the company	C-64, 1^st Floor, Ashok Vihar, Phase – I, New Delhi – 110052, India
Type of charge	Immovable Property
Particular of charge holder	Canara Bank, Shakti Nagar, New Delhi-110007, India
Email	ca_rcg@yahoo.co.in
Nature of description of the instrument creating or modifying the charge	Letter evidencing extension of equitable mortgage along with dated 13.09.2011 and Counter Indemnity dated 13.09.2011
Date of instrument Creating the charge	13.09.2011
Amount secured by the charge	Rs.163.671 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As applicable to respective credit facilities aggregating to Rs. 163.671 Millions granted to/enjoyed by the Company. Terms of Repayment As applicable to respective credit facilities aggregating to Rs. 163.671 Millions granted to/enjoyed by the Company. Margin As applicable to respective credit facilities aggregating to Rs. 163.671 Millions granted to/enjoyed by the Company. Extent and Operation of the charge 100% Others To collaterally secure all amounts payable under respective credit facilities aggregating to Rs. 163.671 Millions granted to/enjoyed by the Company together with all interests, costs, charges, expenses, commission etc.
Short particulars of the property charged	Equitable mortgage of immovable properties of the Company situated at Plot No. C-8/2, Site-C, UPSIDC Industrial Area, Surajpur, Greater Noida, District G.B. Nagar (UP)-201306 admeasuring 2045.21 sq. meters Together with all buildings, structures, fixtures, fittings, machineries standing/installed thereon and to be erected/installed and put up in future.
Date of latest modification prior to the present modification	11.08.2010
Particulars of the present modification	The charge on immovable properties of the Company situated at Plot No. C-8/2, Site-C, UPSIDC Industrial Area, Surajpur, Greater Noida, District G.B. Nagar (UP)-201306 stands enhanced from Rs. 150.971 Millions to Rs. 163.671 Millions to collaterally secure all amounts payable under various credit facilities aggregating to Rs. 163.671 Millions granted to/enjoyed by the Company together with all interests, costs, charges, expenses, commission etc. Other terms and conditions remained the same.

FIXED ASSETS:

· Land

· Plant and Machinery

· Electric Installations

· Furniture and Fixtures

· Lift

· Car

· Air Conditioners

· Cycle

· Fax Machine

· Office Equipment

· Pager

· Computer

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	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.