MIRA INFORM REPORT

Report Date :

18.08.2012

IDENTIFICATION DETAILS

Correct Name :	AMERICAN APPAREL (USA) LLC
Registered Office :	747 Warehouse Street, Los Angeles, CA 90021
Country :	United States
Financials (as on) :	31.12.2011
Year of Establishment :	1998
Com. Reg. No.:	200729010015
Legal Form :	Limited Liability Company
Line of Business :	Manufacturer, Distributor, Retailer of Branded Fashion Basic Apparel
No. of Employees :	10000

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	$200,000 USD
Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

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 – March 31, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
United States	A1	A1

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

Company Name & Contact Details

Company Name:	American Apparel (USA) LLC
Address:	747 Warehouse Street
City:	Los Angeles
State/province:	CA
Zip/postal code:	90021
Country:	United States of America
Telephone:	+1 (213) 488 - 0226
Fax:	+1 (213) 488 - 0334
Website:
Remarks:	Name is different from what was Provided. Name was verified contacting Company Address is Different from what was Provided Company is Traded in the NewYork Amex as “APP”
Credit Recommendation & Observation Current Credit Limit: $200,000 USD Current Credit Observation: Thers is no Immediate Risk in doing Business with this company Analysis · Very Well Established · Positive Payment Trend · Vendors Report Good Dealing With Subject · Buying Volumes are Steady and High · No of Employees Suggests Low Risk · No Derogatory Items on Record
Company History / Operations
Capital Stock:	100% by Partners
Business Structure:	Limited Liability Company
How Listed: Business Started:	Private Company 1998
Management Control:	1998
Line of Business:	Manufacturer, Distributor, Retailer of Branded Fashion Basic Apparel
Territory: Sales Terms: Premises: Branches:	International Cash Rents Premises In Canada, Mexico, UK, France, Germany, Australia, Sweden, Italy, Japan
Affiliations / Subsidiaries:

Company Registration & Status

Date Registered:	October 16 2007
Legal form:	Limited Liability Company
Registration no:	200729010015
Jurisdiction	California
Registry status:	Active
Comments:	American Apparel Inc Shows that is Merged Out

Company Management/Officers

No of Employees: 10000

Name & Title: Dov Charney, Member

Legal Findings

Suits:	None
Court Judgements:	None
NSF Reported:	None
Liens / Collection:	None
Security Filings:	9 UCC Filings exist for leased equipment and assets. These secured creditors would take precedence in the unlikely event of asset liquidation.

Trade Payment Experience

Date Reported July 2012 High Credit : 100000 Now Owing : Zero Terms : Net 30 Days Past Due 1-30 days – Zero Past Due 31-60 days – Zero Past Due 61-90 days – Zero Payments Made: As Agreed Date Reported July 2012 High Credit : 25000 Now Owing : Zero Terms : Net 30 Days Past Due 1-30 days – Zero Past Due 31-60 days – Zero Past Due 61-90 days – Zero Payments Made: As Agreed Date Reported July 2012 High Credit : 15000 Now Owing : Zero Terms : Net 30 Days Past Due 1-30 days – Zero Past Due 31-60 days – Zero Past Due 61-90 days – Zero Payments Made: As Agreed Date Reported June 2012 High Credit : 10000 Now Owing : Zero Terms : Net 30 Days Past Due 1-30 days – Zero Past Due 31-60 days – Zero Past Due 61-90 days – Zero Payments Made: As Agreed

Payment Behaviour:

Business Demonstrates Positive Payment Trend

Financial Information

FINANCIAL ACCOUNTS
Description
Required to file:	Yes
Source:
Comments	Private Companies are not required to Publish Financial Statements

Balance Sheet as of December 31 2011

Assets
Cash	10,293,000
Accts Rec	20,939,000
Inventory	185,764,000
Prepaid Exps & Other Current Assets	7,631,000
Income Tax Rec & Prep Income Taxes	5,955,000
Deferred Income Taxes	148,000
Curr Assets	230,730,000

Liabilities
Accts Pay	33,920,000
Cash Overdraft	1,921,000
Taxes	2,445,000
Revolving Credit Fac & LT Debt	50,375,000
Accrued Exps & Other Current Liab	43,725,000
Other Curr Liabs	10,964,000
Curr Liabs	143,350,000

Fixt & Equip	67,438,000
Deferred Income Taxes	1,529,000
Other Assets	25,024,000
Total Assets	324,721,000

Long-Term Debt	97,142,000
Capital Lease Obligations-Net	1,726,000
L.T. Liab-Other	34,373,000
COMMON STOCK	11,000
ADDIT. PD.-IN CAP	166,486,000
TREASURY STOCK	(2,157,000)
RETAINED EARNINGS	(112,854,000)
ACCUM OTHER COMPREHENSIVE LOSS	(3,356,000)
Total Liabilities + Equity	324,721,000

Notes & Comments

INVESTIGATIVE NOTES
Sources:	Public Court Payment Exchange Data Bases Business Registries References & Vendors.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.70
UK Pound	1	Rs.87.55
Euro	1	Rs.68.85

INFORMATION DETAILS

Report Prepared by :

SHG

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	----

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%)

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.