MIRA INFORM REPORT

Report Date :

11.08.2012

IDENTIFICATION DETAILS

Name :	GOLDEN HOSIERY MANUFACTURING COMPANY PRIVATE LIMITED
Registered Office :	5032, Rui Mandi, Sadar Bazar, Delhi – 110006
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	13.03.1959
Com. Reg. No.:	55-003048
Capital Investment / Paid-up Capital :	Rs.0.350 Million
CIN No.: [Company Identification No.]	U74899DL1959PTC003048
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Gents and Ladies Hosiery Garments.
No. of Employees :	200 (Approximately) ( In Office + In Factory)

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 50000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject was established as partnership firm in the year 1951, with name of “Golden Hosiery Manufacturing Company” and later it got converted into a private company in the year 1959 with the name “Golden Hosiery Manufacturing Company Private Limited”. It is a well established company having satisfactory track. Trade relations are reported as decent. Business is active. Payments are reported to be usually correct. 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Ujjwal Khanna
Designation :	Production Head
Contact No.:	91-9811070992
Date :	01.08.2012

LOCATIONS

Registered Office :	5032, Rui Mandi, Sadar Bazar, Delhi – 110006, India
Tel. No.:	91-11-23618226
Mobile No.:	91-9811070992 (Mr. Ujjwal Khanna)
Fax No.:	Not Available
E-Mail :	sunil_kharabanda@yahoo.co.in princewear@gmail.com
Website :	www.princewear.co.in
Area :	1000 Sq. Ft.
Location :	Owned
Factory 1 :	A-94, Mayapuri Industrial Area, Phase II, Delhi 110064, India
Tel. No.:	91-11-28113999/41845215/41847770/41845216
Fax No.:	91-11-41845216/28113999
Area :	1100 Sq. Ft.
Location :	Owned
Factory 2 :	DN-29, Sault Industrial Area, Kolkata – 700091, West Bengal, India
Tel. No.:	91-33-40034218
Location :	Owned
Factory 3 :	80, Devji Colony, Tiruppur – 641601, Tamilnadu, India
Tel. No.:	91-421-2344208 / 2346144

DIRECTORS

As on 28.09.2011

Name :	Mr. Ravinder Kumar Khanna
Designation :	Director
Address :	W-49, Greater Kailash, Part II, New Delhi – 110049, India
Date of Appointment :	13.03.1959
DIN No.:	02068808
Name :	Mr. Shashi Pal Khanna
Designation :	Director
Address :	W-119, Greater Kailash, Part II, New Delhi – 110049, India
Date of Appointment :	13.03.1959
DIN No.:	00910890
Name :	Mr. Sheel Khanna
Designation :	Director
Address :	W-107, Greater Kailash, Part II, New Delhi – 110049, India
Date of Appointment :	12.04.2006
DIN No.:	00895405
Name :	Mr. Sunil Khanna
Designation :	Director
Date of Appointment :	12.04.2006
DIN No.:	02573035

KEY EXECUTIVES

Name :	Mr. Ujjwal Khanna
Designation :	Production Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2011

Names of Shareholders	No. of Shares
Shashi Pal Khanna	875
Ravinder Kumar Khanna	875
Chaman Lal Khanna	850
Nirmal Kumar Khanna	25
Sheel Khanna	425
Swaran Khanna	450
Total	3500

As on 28.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Gents and Ladies Hosiery Garments.
Products :	· Vests / Inshirts · Briefs · Trunks · Socks · Thermals · Ladies Panties and Bras
Exports :
Products :	· Gents and Ladies Hosiery Garments
Countries :	· Iraq · Dubai
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Actual Production
Socks	Pairs	639009
Fabrics	Kgs.	64517
Under Garments	Pcs.	74920

Note:

It has been explained by the Management that since no License is required for installing machines, the licensed capacity is NIL. Similarly the installed capacity cannot be given since the production in not retable to the capacity of the sewing machine but to the person behind it. Further it is started that the installed capacity for Nylon socks cannot be given since many unknown factors are involved.

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

No. of Employees :

200 (Approximately) (In Office + In Factory)

Bankers :

Oriental Bank of Commence, Bara Tooti Chowk, Sadar Bazar, Delhi - 110006, Delhi, India

Facilities :

Cash Credit: Rs.8.500 Millions (Oriental Bank of Commence)

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Banks
From Oriental Bank of Commence (Against Hypothecation of Stock-in Trade and Raw materials and against Guarantee of two directors)	5.714	3.089
From Oriental Bank of Commence (Against Hypothecation of car)	0.727	0.084
Kotak Mahindra Bank	0.238	0.451
Total	6.679	3.624
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Director with interest	0.092	0.130
From Shareholders and their HUF with interest	0.495	0.446
Total	0.587	0.576

Banking Relations :	--
Auditors :
Name :	K.C Malhotra and Company Chartered Accountants
Address :	R-79, Greater Kailash – I, Delhi – 110048, India
Tel. No.:	91-11-41608133 / 32950005
Fax No.:	91-11-41608133
E-Mail :	rcm_kcmalhotra@yahoo.co.in
PAN No:	AAAFK3761G
Related Parties:	· Espat and Company (Partnership Firm) · Firewell Hosiery Corporation (Partnership Firm) · Golden Apparel (Partnership Firm)

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000	Equity Shares	Rs.100/- each	Rs.0.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2500	Equity Shares (Fully paid up for cash)	Rs.100/- each	Rs.0.250 Million
1000	Equity Shares (Fully paid without payment being received in cash)	Rs.100/- each	Rs.0.100 Million
	Total		Rs..350 Million

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		0.350	0.350	0.350
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		12.028	11.532	10.842
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		12.378	11.882	11.192
LOAN FUNDS
1] Secured Loans		6.679	3.624	2.063
2] Unsecured Loans		0.587	0.576	0.547
TOTAL BORROWING		7.266	4.200	2.610
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		19.644	16.082	13.802
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.832	1.845	0.969
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.106	0.181	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	9.033	6.250	5.515
	Sundry Debtors	8.301	8.042	8.227
	Cash & Bank Balances	3.229	0.545	0.204
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3.787	3.866	3.225
Total Current Assets		24.350	18.703	17.171
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.059	1.388	1.472
	Other Current Liabilities	0.456	0.440	0.367
	Provisions	3.129	2.819	2.499
Total Current Liabilities		7.644	4.647	4.338
Net Current Assets		16.706	14.056	12.833
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		19.644	16.082	13.802

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	33.406	28.247	23.063
		Other Income	4.417	0.000	0.000
		TOTAL	37.823	28.247	23.063
Less	EXPENSES
		Office Expenses	36.942	27.418	22.855
		Administrative Expenses
		Advertising Expenses
		TOTAL	36.942	27.418	22.855
	PROFIT BEFORE TAX		0.881	0.829	0.208
Less	TAX		0.385	0.139	0.118
	PROFIT AFTER TAX		0.496	0.690	0.090
	Earnings Per Share (Rs.)		141.74	197.00	25.78

Particulars	31.03.2012
Sales Turnover (Approximately)	40.000

Expected Sales (2012-2013) : Rs.42.000 Millons

The above information has been parted by Mr. Ujjwal Khana.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.31	2.44	0.39
Net Profit Margin (PBT/Sales)	(%)	2.64	2.93	0.90
Return on Total Assets (PBT/Total Assets}	(%)	3.24	4.03	1.15
Return on Investment (ROI) (PBT/Networth)		0.07	0.07	0.02
Debt Equity Ratio (Total Liability/Networth)		1.20	0.74	0.62
Current Ratio (Current Asset/Current Liability)		3.19	4.02	3.96

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
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
31]	Date of Birth of Director, if available	No
32]	PAN of Director, if available	No
33]	Voter ID No of Director, if available	No
34]	External Agency Rating, if available	No

NOTE:

The registered office address of the company has been shifted from “5038, Rui Mandi, Sadar Bazar, Delhi – 110006, India” to the present address w.e.f. 28.10.2009.

FINANCIAL RESULTS:

During the year the company achieved the turnover of Rs. 33.406 Millions as compared to last year of Rs. 28.247 Millions and earned a profit of Rs.0.881 Million as compared to last year prom of Rs. 0.829 Million. The company will make all efforts to improve the turnover and profitability.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U74899DL1959PTC003048
Name of the company	GOLDEN HOSIERY MANUFACTURING COMPANY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	5032, Rui Mandi, Sadar Bazar, Delhi – 110006, India E-mail id : sunil_kharabanda@yahoo.co.in
This form is for	Creation of charge
Type of charge	Others (Corporate Guarantee)
Particular of charge holder	Oriental Bank of Commerce, Bara Tooti, Sadar Bazar, Delhi – 110006, India E-mail id : akandco@hotmail.com
Nature of instrument creating charge	Agreement of Guarantee dated 24.03.2012
Date of instrument Creating the charge	24.03.2012
Amount secured by the charge	Rs.25.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per Credit Facilities granted to Fitwell Hosiery Corporation Terms of Repayment As per Credit Facilities granted to Fitwell Hosiery Corporation Margin As per Credit Facilities granted to Fitwell Hosiery Corporation Extent and Operation of the charge As per Credit Facilities granted to Fitwell Hosiery Corporation Others To Guarantee to secure all sum payable under credit facilities of Rs. 25.000 Millions granted to M/S Fitwell Hosiery Corporation together with interest, costs, expenses and other charges etc.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Corporate Guarantee of the company

FIXED ASSETS:

· Land and Building

· Plant and Machinery

· Furniture and Fixtures

· Typewriter

· Vehicles

· Electric Installation

· Intercom

· Television

· Air-conditioner

· Weighting Machines

· Computer

· Generator

· Tubewell

· Boiler

· Lift

· Fire Fighting Equipments

· Scooter

· Cycle

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.55.34
UK Pound	1	Rs.86.45
Euro	1	Rs.68.04

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		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.