MIRA INFORM REPORT

Report Date :

31.08.2012

IDENTIFICATION DETAILS

Name :	IDEAL FASTENER (INDIA) PRIVATE LIMITED

Registered Office :	C5, Phase II, 3^rd Main Road, Special Economic Zone, MEPZ, Tambaram, Chennai – 600 045, Tamilnadu

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	12.12.2005

Com. Reg. No.:	18-058282

Capital Investment / Paid-up Capital :	Rs.0.400 million

CIN No.: [Company Identification No.]	U36992TN2005PTC058282

TAN No.: [Tax Deduction & Collection Account No.]	CHEI05412B

Legal Form :	Private Limited Liability Company

Line of Business :	Subject is engaged in manufacturing, exporting, importing, trading and otherwise dealing in all kinds of zip components and other garment accessories.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 237000

Status :	Satisfactory

Payment Behaviour :	Usually Correct

Litigation :	Clear

Comments :	Subject is an established company having satisfactory track. There appears dip in the profitability in the current year. However, networth appears to be strong. 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 – June 30, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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.

LOCATIONS

Registered Office/ Factory/ Sales Office 1 :	C5, Phase II, 3^rd Main Road, Special Economic Zone, MEPZ, Tambaram, Chennai – 600 045, Tamilnadu, India
Tel. No.:	91-44-22622050/ 22622051/ 22622052
Fax No.:	91-44-42034747/ 28276437
E-Mail :	vijaya@idealfastener.com sastri@idealfastener.com chennai@idealfastener.com
Website :	www.idealfastener.com
Area :	4710 sq. mtrs.
Location :	Leased

Sales Office 2 :	#404, 1^st Floor, 1^st Cross, 1^st Block, R.T. Nagar, Bangalore – 560 032, Karnataka, India
Tel No.:	91-80-41726476
E-Mail :	bangalore@idealfastener.com

Sales Office 3 :	207-208 Charmwood Plaza, Charmwood Village, Faridabad - 121 003, Haryana, India
Tel. No.:	91-129-4117601
Fax No.:	91-129-4117601
E-Mail :	delhi@idealfastener.com

DIRECTORS

As on 19.09.2011

Name :

Mrs. Vijaya Shekar

Designation :

Director

Address :

88/89, Kuppuswamy Street, G.G. Nagar, Nerkundram, Chennai – 600 107, Tamilnadu, India

Date of Birth/Age :

12.01.1954

Date of Appointment :

12.12.2005

DIN No.:

00532674

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U27209TN1983PTC009966	MULTIZIP PRIVATE LIMITED	Managing director	23/12/1990	23/12/1990	Under liquidation	NO
2	U36992TN2005PTC058282	IDEAL FASTENER (INDIA) PRIVATE LIMITED	Director	12/12/2005	12/12/2005	Active	NO

Name :

Mr. Baljapalli Suryanarain Sastri

Designation :

Director

Address :

209 (Old No.94), V.M. Street, Mylapore, Chennai – 600 004, Tamilnadu, India

Date of Birth/Age :

25.09.1952

Date of Appointment :

12.12.2005

DIN No.:

01169987

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U27209TN1983PTC009966	MULTIZIP PRIVATE LIMITED	Whole-time director	15/04/1983	15/04/1983	Under liquidation	NO
2	U36992TN2005PTC058282	IDEAL FASTENER (INDIA) PRIVATE LIMITED	Director	12/12/2005	12/12/2005	Active	NO

Name :

Mr. Jeffrey Jules Gut

Designation :

Director

Address :

7700, Kencot Court, Raleigh, North Carolina, United States of America – 27615

Date of Birth/Age :

16.06.1979

Date of Appointment :

12.12.2005

DIN No.:

01669079

Name :

Mr. Ralph Leon Gut

Designation :

Director

Address :

7700, Kencot Court, Raleigh, North Carolina, United States of America – 27615

Date of Birth/Age :

27.10.1941

Date of Appointment :

12.12.2005

DIN No.:

01720183

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 19.09.2011

Names of Shareholders		No. of Shares
Baljapalli Suryanarain Sastri		960
Vijaya Shekar		960
M.M. Udeshi		80
Gilbert Wan Hoi Hung		1000
Ideal Fastener Mauritius, Mauritius		1000
Total		4000

As on 19.09.2011

Equity Share Breakup		Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]		50.00
Directors or relatives of directors		48.00
Other top fifty shareholders		2.00
Total		100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in manufacturing, exporting, importing, trading and otherwise dealing in all kinds of zip components and other garment accessories.

Products :

Item Code No. (ITC Code)	9607.19
Product Description	Zippers

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	31.03.2010
Licensed Capacity	Not Applicable
Installed Capacity	Not Applicable
Actual Production – Pcs	38004887

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

v Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227, D, Nariman Point, Mumbai – 400 021, Maharashtra, India

v Bank of Ceylon, No.1090, A.R. Complex, Poonamallee High Road, Chennai – 600 084, Tamilnadu, India

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
From Bank - Foreign Currency Term Loan (Secured against the hypothecation of Plant and Machinery and Land and Building)	12.828	2.567
From Bank - Cash credit (Secured against the hypothecation of Stock, Book debts and Land and Building)	22.686	24.233
From Bank - Packing Credit (Secured against the hypothecation of Stock, Book debts and Land and Building)	17.108	17.108
From Companies (Secured against the hypothecation of Vehicle)	0.241	0.991
Total	52.863	44.899

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
From Directors	47.000	51.799
From Shareholders	27.200	26.862
Total	74.200	78.661


Banking Relations :	--

Auditors :
Name :	Vepa and Company Chartered Accountants
Address :	“Rudraprasada”, 93, Venkatachala Mudali Street, Mylapore, Chennai – 600 004, Tamilnadu, India
Tel. No.:	91-44-24987789/ 24987735
Income-tax PAN of auditor or auditor's firm :	AAAFV0371K

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
190000	Equity Shares	Rs.100/- each	Rs.19.000 millions
5000	Class A Equity Shares	Rs.100/- each	Rs.0.500 million
5000	Class B Equity Shares	Rs.100/- each	Rs.0.500 million
	Total		Rs.20.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000	Equity Shares	Rs.100/- each	Rs.0.100 million
2000	Class A Equity Shares	Rs.100/- each	Rs.0.200 million
1000	Class B Equity Shares	Rs.100/- each	Rs.0.100 million
	Total		Rs.0.400 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		0.400	0.400	0.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		58.923	44.304	27.701
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		59.323	44.704	28.101
LOAN FUNDS
1] Secured Loans		52.863	44.899	46.834
2] Unsecured Loans		74.200	78.661	79.690
TOTAL BORROWING		127.063	123.560	126.524
DEFERRED TAX LIABILITIES		4.561	3.988	3.781

TOTAL		190.947	172.252	158.406

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		133.047	114.958	105.562
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	92.172	75.864	61.201
	Sundry Debtors	29.919	24.833	40.373
	Cash & Bank Balances	3.380	2.223	1.677
	Other Current Assets	1.915	2.559	3.330
	Loans & Advances	3.007	2.717	1.579
Total Current Assets		130.393	108.196	108.160
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	68.478	41.840	43.719
	Other Current Liabilities	4.015	9.062	11.449
	Provisions	0.000	0.000	0.148
Total Current Liabilities		72.493	50.902	55.316
Net Current Assets		57.900	57.294	52.844

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		190.947	172.252	158.406

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	515.338	457.346	365.353
		Other Income	1.445	0.044	0.186
		TOTAL	516.783	457.390	365.539

Less	EXPENSES
		Office Expenses	482.522	423.580	322.955
		Administrative Expenses
		Advertising Expenses
		TOTAL	482.522	423.580	322.955

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		34.261	33.810	42.584

Less/ Add	DEPRECIATION/ AMORTISATION		19.069	17.000	16.257

	PROFIT BEFORE TAX		15.192	16.810	26.327

Less	TAX		0.573	0.207	0.251

	PROFIT AFTER TAX		14.619	16.603	26.076

	EARNINGS IN FOREIGN CURRENCY
		FOB value of exports	495.326	436.683	352.971
	TOTAL EARNINGS		495.326	436.683	352.971

	Earnings Per Share (Rs.)		3654.85	4151.00	6519.11

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.83	3.63	7.13

Net Profit Margin (PBT/Sales)	(%)	2.95	3.68	7.21

Return on Total Assets (PBT/Total Assets}	(%)	5.77	7.53	12.32

Return on Investment (ROI) (PBT/Networth)		0.26	0.38	0.94

Debt Equity Ratio (Total Liability/Networth)		3.39	3.90	6.47

Current Ratio (Current Asset/Current Liability)		1.80	2.13	1.96

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	No
9) Name of person contacted	No
10) Designation of contact person	No
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	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
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	No

Note:

The registered office of the company has been shifted from 88/89, Kuppuswamy Street, Golden George Nagar, Chennai – 600 107, Tamilnadu to the present address w.e.f. 01.06.2006.

OPERATIONS:

The Company is engaged in manufacturing, exporting, importing, trading and other wise dealing in all kinds of zip components and other garment accessories. The Company has been successful in meeting the targets that had been set for the Company's current year operation. The Company's performance during the year has been phenomenal.

SHARE CAPITAL:

There has been no change in the Authorised Share Capital of the Company which continues to remain at Rs.20.000 millions whereas the paid up share capital of the Company remains at Rs.0.400 million during the period.

Bankers Charges Report as per Registry

Corporate identity number of the company

U36992TN2005PTC058282

Name of the company

IDEAL FASTENER (INDIA) PRIVATE LIMITED

Address of the registered office or of the principal place of business in India of the company

C5, Phase II, 3^rd Main Road, Special Economic Zone, MEPZ, Tambaram, Chennai – 600 045, Tamilnadu, India

E-Mail: vijaya@idealfastener.com

This form is for

Modification of charge

Charge identification number of the modified

90325555

Type of charge

Immovable Property

Book Debts

Movable Property (not being pledge)

Floating Charge

Particular of charge holder

Bank of Ceylon, No.1090, A.R. Complex, Poonamallee High Road, Chennai – 600 084, Tamilnadu, India

E-Mail: ceybank@vsnl.com

Nature of description of the instrument creating or modifying the charge

Hypothecation of Book Debts

Hypothecation of Machineries

Hypothecation of Goods and Securities

Advance Against Goods Awaiting shipment (Packing Credit)

Date of instrument Creating the charge

28.10.2010

Amount secured by the charge

Rs.74.500 millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest:

CC: 9.5% p.a.(as per base rate policy)

PCFC: 2% above 6 months LIBOR rate

EBN (Under LC term): as per RBI norms

TL: 2% above 6 months LIBOR rate

Terms of Repayment:

CC: Repayable on demand

PCFC: Running limit, repayable by export bill realizations

EBN (Under LC term): Running limit, repayable by export bill realizations

TLFC: Repayable in 24 months by 24 monthly equal installments of principal.

Margin:

As per the sanction letter and as determined by banker from time to time.

Extent and Operation of the charge:

As per the instruments executed

Others:

Nature of facilities	Amount (Rs. in millions)
CC	25.000
PCFC	18.000
EBN (Under LC term)	18.000
TLFC	13.500
Total	74.500

All other terms and conditions as per the sanction letter and instruments executed.

Short particulars of the property charged

Hypothecation of FIRST CHARGE on all the present and future stocks and book debts, outstanding, moneys receivables, claims and bills, export of goods and other current assets of the company.

Hypothecation by way of FIRST CHARGE in favour of the bank, all machineries and other fixed assets both present and future of the company

Mortgage of lease hold rights over property situated at C-15, Phase - II, 3rd Main road, Madras export processing zone (MEPZ), Tambaram, Chennai - 600 045

Particulars of the present modification

The amount secured by the charge has been modified from Rs.61.000 millions to Rs.74.500 millions morefully detailed hereunder.

Nature of facilities	Amount (Rs. in millions)
CC	25.000
PCFC	18.000
EBN (Under LC term)	18.000
TLFC	13.500

All other terms and conditions as per the sanction letter and instruments executed.

FIXED ASSETS:

v Air Conditioner

v Computer

v Electrical Installation

v Factory Shed

v Furniture and Fittings

v Motor Car

v Office Equipment

v Office Building

v Plant and Machinery

v Two Wheeler

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.55.65
UK Pound	1	Rs.88.10
Euro	1	Rs.69.84

INFORMATION DETAILS

Report Prepared by :

SMN

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	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--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	NO
--AFFILIATION	YES/NO	NO
--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.

MIRA INFORM REPORT

92.172

61.201

29.919

40.373

3.380

1.677

1.915

3.330

3.007

1.579

130.393

68.478

4.015

11.449

0.000

0.148

72.493

57.900

52.844

2.83

7.13

2.95

5.77

12.32

0.26

0.94

3.39

6.47

1.80

1.96

Unit