MIRA INFORM REPORT

Report Date :

25.08.2012

IDENTIFICATION DETAILS

Name :	JANAGAL EXPORTS PRIVATE LIMITED
Registered Office :	2312/ 2, Jagat Nagar, B/S Bapu School, Near Sunder Nagar, Rahon Road, Ludhiana - 141007, Punjab
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.07.2003
Com. Reg. No.:	16-026152
Capital Investment / Paid-up Capital :	Rs. 30.000 Millions
CIN No.: [Company Identification No.]	U51311PB2003PTC026152
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Hosiery Goods.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 160000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Profitability of the company appears to be low. However, trade relation are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealing with some caution.

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Cash Credit (CRISIL) B+
Rating Explanation	Having high risk of default regarding timely servicing of financial obligation.
Date	Jan 2012

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. Pandey
Designation :	Finance Manager
Contact No.:	91-9815843513
Date :	23.08.2012

LOCATIONS

Registered Office :	2312/ 2, Jagat Nagar, B/S Bapu School, Near Sunder Nagar, Rahon Road, Ludhiana - 141007, Punjab, India
Tel. No.:	91-161-2534105/ 2220001
Mobile No.:	91-9815843513 (Mr. Pandey)
Fax No.:	91-161-2220005
E-Mail :	nkgdata@gmail.com janagal_jepl@yahoo.com
Location :	Owned
Factory :	Sartal Garewal Saram Bahbhurke, Nurvala Road, Village Bhabhurke, Ludhiana – 141007, Punjab, India
Location :	Owned

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Vijay Kumar
Designation :	Director
Address :	2538/A, Basti Bhai Mani Singh, Ludhiana – 141007, Punjab, India
Date of Birth/Age :	22.06.1982
Date of Appointment :	10.05.2004
DIN No.:	01007119
Name :	Mr. Malkit Chand
Designation :	Director
Address :	2538/A, Basti Bhai Mani Singh, Ludhiana – 141007, Punjab, India
Date of Birth/Age :	21.06.1960
Date of Appointment :	01.07.2003
DIN No.:	01007201
Name :	Mr. Balwinder Pal
Designation :	Director
Address :	1054/29, Basti Jodhe Wal, Ludhiana – 141007, Punjab, India
Date of Birth/Age :	21.03.1971
Date of Appointment :	01.07.2003
DIN No.:	01007264

KEY EXECUTIVES

Name :	Mr. Pandey
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Mr. Malkit Chand	610400
Mr. Balwinder Pal	387500
Mr. Vijay Kumar	190100
Bimla Devi	155000
Surinder Rani	127000
Mansa Ram	182000
Kirna Balwinder Pal	32000
Swarni Devi	25000
Sonia Janagal	39000
Rajni Janagal	84000
Amarjit Mansa Ram	124000
Reena Rani	24000
Krishan Janagal	90000
Kamal Janagal	90000
Hemant Janagal	40000
Total	2200000

AS ON 30.09.2011

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

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Hosiery Goods.
Exports :
Products :	Hosiery Goods
Countries :	Ø UAE Ø Dubai Ø Europe
Imports :
Products :	Raw Material
Countries :	Ø Japan Ø Hong Kong
Terms :
Selling :	Against TT
Purchasing :	Against TT

GENERAL INFORMATION

Suppliers :

High Fly Knitwears

Customers :

End Users

Ø Buti Mohammed Trading LLC, Dubai

No. of Employees :

100 (Approximately)

Bankers :

Ø State Bank of Bikaner and Jaipur, Mahopuri Chowk, Ludhiana, Punjab, India

Ø Bank of Baroda, Clock Tower, Ludhiana - 141001, Punjab, India

Facilities :

TL – RS. 32.500 Millions (Bank of Baroda)

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Secured Loan	74.161	47.991
Total	74.161	47.991
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Unsecured loans	13.936	14.525
Total	13.936	14.525

Banking Relations :	--
Auditors :
Name :	Naresh K Goyal and Company Chartered Accountants
Address :	51, Krishna Market, Overlock Road, Ludhiana – 141003, Punjab, India
Mobile No.:	91-9814128260
Income-tax PAN of auditor or auditor's firm :	AEKPG1461K
Memberships :	Ø AEPC Ø Chamber of Commerce Ø Rehma Readymade Hosiery Manufacturers’ Welfare Association.
Associates/Subsidiaries :	Little Master Knitwear

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3,000,000	Equity Shares	Rs. 10/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2,200,000	Equity Share	Rs.10/- each	Rs. 22.000 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		30.000	10.000	10.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		11.292	8.593	5.785
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		41.292	18.593	15.785
LOAN FUNDS
1] Secured Loans		74.161	47.991	18.413
2] Unsecured Loans		13.936	14.525	17.783
TOTAL BORROWING		88.097	62.516	36.196
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		129.389	81.109	51.981
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7.402	7.843	6.278
Capital work-in-progress		5.492	0.610	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	63.086	46.346	29.050
	Sundry Debtors	90.679	69.855	62.738
	Cash & Bank Balances	1.732	1.632	2.486
	Other Current Assets	10.827	10.571	5.955
	Loans & Advances	1.595	0.851	0.919
Total Current Assets		167.919	129.255	101.148
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities	50.356	55.850	54.618
	Provisions	1.068	0.749	0.827
Total Current Liabilities		51.424	56.599	55.445
Net Current Assets		116.495	72.656	45.703
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		129.389	81.109	51.981

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income
		Other Income
		TOTAL (A)	405.697	348.368	280.708
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	391.432	335.382	270.086
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		14.265	12.986	10.622
Less	FINANCIAL EXPENSES (D)		10.022	8.911	7.518
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.243	4.075	3.104
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.557	0.514	0.386
	PROFIT BEFORE TAX (E-F) (G)		3.686	3.561	2.718
Less	TAX (H)		1.143	1.099	1.790
	PROFIT AFTER TAX (G-H) (I)		2.543	2.462	0.928
	Earnings Per Share (Rs.)		1.16	2.46	1.79

Particulars	31.03.2012
Sales Turnover (Approximately)	700.000

Expected Sales ( 2012-2013 ) : Rs. 1000.000 Millions

The above information has been parted by Mr. Pandey (Finance Manager)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.63	0.71	0.33
Return on Total Assets (PBT/Total Assets}	(%)	2.10	2.60	2.53
Return on Investment (ROI) (PBT/Networth)		0.09	0.19	0.17
Debt Equity Ratio (Total Liability/Networth)		3.38	6.41	5.81
Current Ratio (Current Asset/Current Liability)		3.27	2.28	1.82

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	No
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	Yes
18]	Major customers	Yes
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 Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U51311PB2003PTC026152
Name of the company	JANAGAL EXPORTS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	2312/2, Jagat Nagar, B/S Bapu School, Near Sunder Nagar, Rahon Road, Ludhiana - 141007, Punjab, India
This form is for	Modification of charge
Charge identification number of the modified	10316460
Type of charge	Book Debts Movable Property
Particular of charge holder	Bank of Baroda, Clock Tower, Ludhiana – 141001, Punjab, India Email ID: ludhia@bankofbaroda.com
Nature of description of the instrument creating or modifying the charge	Supplemental composite agreement of hypothecation of goods, book debts, moveable machinery and vehicles.
Date of instrument Creating the charge	21.05.2012
Amount secured by the charge	Rs. 159.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 1% above rate of the bank i.e. 11.50% per annum with monthly rest. Terms of Repayment On Demand Margin 25% on stocks 40% on book debts Extent and Operation of the charge 100%
Short particulars of the property charged	Primary Security a. First Charge on the entire current assets including of all stocks and book debts of the company existing as well as future. b. First Charge on the entire fixed assets including Plant and Machinery proposed to be purchased existing as well as future excluding cost of cars/vehicles which have been financed by other banks/fis. Collateral Security 1. EM of Plot measuring 3902.25 sq. yds. situated at Bahadur K. Road, Near Hazuri Bagh Colony, backside Sacred Heart Convent School Bhattian, Ludhiana in the name of Sh. Malkit Chand, Sh. Balwinder Pal and Sh. Amarjeet Pal Janagal having market value of Rs. 52.260 Millions approx. 2. EM of Industrial plot measuring 3940 Sq. yds situated Grewal Farms, Noorwala Road, Bahadur Ke Road, Ludhiana in the name of Sh. Malkit Chand, Sh. Balwinder Pal and Amarjeet Pal Janagal having market value of Rs. 61.745 Millions approx. 3. EM of resi house measuring 120 sq. yds. sitd. at 2538/A & 2538/B, Basti Bhai Mani Singh, Rahon Road, Ludhiana in the name of Smt. Swarni Devi w/o Sh. Mansa Ram having Market value of Rs. 10.277 Millions 4. EM of Plot measuring 2551 Sq. Yds at Bahadur Ke Road, Ldh. in the name of Sh. Vijay Kumar s/o of Sh. Malkit Chand and Sh. Hemant Kumar s/o of Sh. Amarjeet Pal having market value of Rs. 18.740 Millions 5. Personal Guarantee of all the Directors and Mr. Hemant Kumar, Sh. Amarjeet Janagal, Smt. Swarni Devi and Sh. Mansa Ram having aggregate net worth of Rs. 275.389 Millions
Date of latest modification prior to the present modification	23.09.2011
Particulars of the present modification	The Amount of Limit enhanced to Rs. 159.500 Millions from the existing limit of Rs. 140.000 Millions.

TRADE REFERENCES:

Ø High Fly Knitwears

Ø Buti Mohammed Trading LLC, Dubai

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 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. 55.38
UK Pound	1	Rs. 87.80
Euro	1	Rs. 69.48

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	4
--CREDIT LINES	1~10	4
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		43

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

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.