MIRA INFORM REPORT

Report Date :

05.12.2012

IDENTIFICATION DETAILS

Name :	LOVABLE LINGERIES LIMITED
Formerly Known As :	LOVABLE LINGERIE PRIVATE LIMITED [w.e.f. 20.12.1995] HYBO KNIT PRIVATE LIMITED
Registered Office :	A-46, Street No.2, Opposite IDBI Bank, M.I.D.C., Andheri (East), Mumbai – 400 093, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	29.09.1987
Com. Reg. No.:	11-044835
Capital Investment / Paid-up Capital :	Rs. 168.000 millions
CIN No.: [Company Identification No.]	L17110MH1987PLC044835
TAN No.: [Tax Deduction & Collection Account No.]	MUML04726B
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Garments.
No. of Employees :	1447 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (61)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 6350000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having good track record. Financially company performance seems to be strong. Performance Capacity is high. Trade relations are reported to be fair. Business is active. Payment are reported to be regular and as per commitment. The company can be considered for business dealing at usual trade terms and condition.

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

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	A+ (Long term Bank Facilities)
Rating Explanation	Having adequate degree of safety regarding timely servicing of financial obligation it carries low credit risk.
Date	22.09.2011

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 :	A-46, Street No.2, Opposite IDBI Bank, M.I.D.C., Andheri (East), Mumbai – 400 093, Maharashtra, India
Tel. No.:	91-22-28383581
Tele Fax No.:	91-22-28383582
E-Mail :	lovable.mum@federalbrands.in info@hypeooh.com corporate@lovableindia.in
Website :	www.lovableindia.in
Factory 1 :	46/2, Guruprasanna Industrial Area, Doddakallasandra, Konanakunte Cross Road, Bangalore-560062, Karnataka, India
Factory 2 :	No. 9 and 10, Manipal County Cross John Avenue Private Road, Singasandra Hosur Road, Bangalore-560068, Karnataka, India
Factory 3 :	No.18/2, Opposite Khodays Breweries Limited, Behind L and T Concrete, Konanakunte Cross, Kanakapura Road, Bangalore – 560 062, Karnataka, India
Tel. No.:	91-80-26667622 / 28383581
Fax No.:	91-80-26661327 / 28383582
E-Mail :	lovable@bgl.vsnl.net.in corporate@lovableindia.in
Branches :	Located at · Hyderabad · New Delhi · Bangalore · Chennai · Kolkata · Mumbai

DIRECTORS

As on 31.03.2012

Name :	Mr. L Vinay Reddy
Designation :	Chairman and Managing Director
Date of Birth/Age :	42 Years
Qualification :	Bachelor’s Degree in Commerce
Experience :	20 Years
Name :	Mr. G. Ashok Reddy
Designation :	Whole-time Director
Date of Birth/Age :	57 Years
Qualification :	Diploma in Electrical Engineering
Experience :	34 Years
Name :	Mr. L. Jaipal Reddy
Designation :	Whole-time Director
Date of Birth/Age :	71 Years
Qualification :	Diploma in Electrical Engineering
Name :	Mr. Sivabalan Paul Pandian
Designation :	Independent Director
Date of Birth/Age :	52 Years
Qualification :	M. Sc. (Tech)
Other Directorship:	Mudra Lifestyle Limited
Name :	Mr. Anantharaman Mahadevan
Designation :	Independent Director
Qualification :	Master of engineering (MachineTool Design)
Name :	Mr. Dhanpat Kothari
Designation :	Independent Director
Date of Birth/Age :	41 Years
Qualification :	Bachelor’s Degree in Commerce
Name :	Mr. V. T. Bharadwaj
Designation :	Nominee Director
Name :	Mr. Gopal Sehjpal
Designation :	Independent Director
Date of Birth/Age :	66 Years
Qualification :	M.A., Dip in Personnel Management
Other Directorship:	Maxwell Industries Limited

KEY EXECUTIVES

Name :	Mr. Prakash Ramanna
Designation :	GM-Sales and Marketing (Lovable)
Name :	Mr. Giriraj
Designation :	All India Sales Manager (Daisy Dee)
Name :	Mr. L. R. Srinivasan
Designation :	Purchase and Planning Manager
Name :	Mr. Ashok Singh
Designation :	General Manager-Operation

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2012

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	11097000	66.05
Sub Total	11097000	66.05
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	153000	0.91
Sub Total	153000	0.91
Total shareholding of Promoter and Promoter Group (A)	11250000	66.96
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	655752	3.90
Financial Institutions / Banks	5633	0.03
Foreign Institutional Investors	1711887	10.19
Sub Total	2373272	14.13
(2) Non-Institutions
Bodies Corporate	453803	2.70
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	1366537	8.13
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	185345	1.10
Any Others (Specify)	1171043	6.97
Non Resident Indians	61236	0.36
Foreign Corporate Bodies	1000000	5.95
Clearing Members	109807	0.65
Sub Total	3176728	18.91
Total Public shareholding (B)	5550000	33.04
Total (A)+(B)	16800000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	16800000	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Garments.

GENERAL INFORMATION

No. of Employees :

1447 (Approximately)

Bankers :

Bank of Baroda.

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
From Banks	34.437	0.000
Total	34.437	0.000

Banking Relations :	--
Statutory Auditors:
Name :	Attar and Company Chartered Accountants
Internal Auditors:
Name :	S. H. Bathiya and Associates Chartered Accountants
Associates/Subsidiaries:	· Federal Brands Limited [Formerly Microtex India Limited] · Lariene Fashions Private Limited · Vinay Hosiery Private Limited · Tecknit Industries · Strategy Games Private Limited · Aadhunik Vitarak · Holstein Ecofoods Private Limited · Lovable Lifestyles Private Limited · Reddy and Pathare Elastics Private Limited · Hype Integracomm Private Limited · Belleni Fashions Private Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
18000000	Equity Shares	Rs.10/- each	Rs. 180.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
16800000	Equity Shares	Rs.10/- each	Rs. 168.000 Millions

Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

(Rs. in Millions)

Particulars	Opening Balance	Fresh issue	Bonus	ESOP	Conversion	Buy back	Other changes (give details)	Closing Balance
Equity shares with voting rights Year ended 31 March, 2012 -Number of shares - Amount ( Rs. in Millions) Year ended 31 March, 2011 - Number of shares - Amount (Rs. in millions)	16,800,000 168.000 7,500,000 75.000	5,550,000 5.550	3,750,000 37.500	-	-	-	-	16,800,000 168.000 16,800,000 168.000

Details of shares held by each shareholder holding more than 5% shares:

Class of shares / Name of shareholder	31.03.2012
	Number of shares held	% holding in that class of shares
Equity shares with voting rights
Vinay Reddy	5,624,250	33.48
Shobha Reddy	3,915,000	23.3
Prashant Jaipal Reddy	1,535,250	9.14
SCI Growth Investments II	1,000,000	5.95

Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash, bonus shares and shares bought back for the period of 5 years immediately preceding the Balance Sheet date:

	Year (Aggregate No. of Shares)
Particulars	2011-12	2010-11	2009-10	2008-09	2007-08
Equity Shares :
Fully paid up pursuant to contract(s) without payment being received in cash	-	-	-	-	-
Fully paid up by way of bonus shares	-	3,750,000	6,000,000	-	-
Shares bought back	-	-	-	-	-

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		168.000	168.000	75.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1421.735	1244.266	168.563
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1589.735	1412.266	243.563
LOAN FUNDS
1] Secured Loans		34.437	0.000	2.889
2] Unsecured Loans		0.000	0.000	0.446
TOTAL BORROWING		34.437	0.000	3.335
DEFERRED TAX LIABILITIES		10.451	9.237	8.789
TOTAL		1634.623	1421.503	255.687
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		234.432	129.377	127.850
Capital work-in-progress		37.847	0.000	0.000
INVESTMENT		961.223	930.570	19.843
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	336.130	223.586	130.665
	Sundry Debtors	154.672	111.584	136.394
	Cash & Bank Balances	32.671	143.329	26.967
	Other Current Assets	6.079	2.201	0.000
	Loans & Advances	92.053	46.813	23.199
Total Current Assets		621.605	527.513	317.225
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	101.332	89.071	159.746
	Other Current Liabilities	54.499	30.743	30.167
	Provisions	64.653	46.143	19.318
Total Current Liabilities		220.484	165.957	209.231
Net Current Assets		401.121	361.556	107.994
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1634.623	1421.503	255.687

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1329.939	1014.850	869.535
		Other Income	67.254	9.411	1.014
		TOTAL (A)	1397.193	1024.261	870.549
Less	EXPENSES
		Cost of materials consumed	397.821	416.060	705.521
		Purchases of stock-in-trade	211.277	109.984
		Employee benefits expense	154.921	115.548
		Other expenses	415.983	242.295
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(80.880)	(66.735)
		TOTAL (B)	1099.122	817.152	705.521
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		298.071	207.109	165.028
Less	FINANCIAL EXPENSES (D)		5.921	7.826	9.329
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		292.150	199.283	155.699
Less/ Add	DEPRECIATION/ AMORTISATION (F)		15.035	14.221	13.070
	PROFIT BEFORE TAX (E-F) (G)		277.115	185.062	142.629
Less	TAX (H)		60.595	44.157	34.563
	PROFIT AFTER TAX (G-H) (I)		216.520	140.905	108.066
	Add: Excess Provision for Taxation		--	--	1.017
	Less: Prior Period Adjustment (Deferred Tax)		--	--	(8.668)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		241.583	167.563	116.132
Less	APPROPRIATIONS
		General Reserve	17.500	1.000	1.000
		Utilised for Issue of Bonus Shares	0.000	36.500	39.238
		Proposed Dividend on Equity Share Capital	33.600	25.200	7.500
		Corporate Dividend Tax on Proposed Dividend	5.451	4.185	1.246
	BALANCE CARRIED TO THE B/S		401.552	241.583	167.563
	EARNINGS IN FOREIGN CURRENCY		NA	NA	1.262
	IMPORTS		20.195	24.205	20.409
	Earnings Per Share (Rs.)		12.89	12.26	14.41

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012
	Unaudited	Unaudited
	1^st Quarter	2^nd Quarter
Net Sales	527.610	401.050
Total Expenditure	444.910	331.770
PBIDT (Excl OI)	82.700	69.280
Other Income	24.400	0.110
Operating Profit	107.100	69.390
Interest	1.940	2.030
Exceptional Items	0.000	0.000
PBDT	105.160	67.360
Depreciation	4.680	4.890
Profit Before Tax	100.480	62.480
Tax	25.290	19.270
Provisions and contingencies	0.000	0.000
Profit After Tax	75.190	43.210
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	75.190	43.210

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	15.50	13.76	12.41
Net Profit Margin (PBT/Sales)	(%)	20.84	18.24	16.40
Return on Total Assets (PBT/Total Assets}	(%)	32.37	28.17	32.05
Return on Investment (ROI) (PBT/Net worth)		0.17	0.13	0.59
Debt Equity Ratio (Total Liability/Net worth)		0.16	0.12	0.87
Current Ratio (Current Asset/Current Liability)		2.82	3.18	1.52

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	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	Yes
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	Yes

REVIEW OF OPERATION

The Company registered a turnover of Rs.1329.939 Millions during the current year as compared to Rs.1014.850 Millions during the corresponding previous year.

MANAGEMENT DISSCUSSION AND ANALYSIS

The purpose of this discussion is to provide an understanding of Lovable Lingerie Limited's financial results and business performance by focusing on changes in certain key measures from year to year.

Management Discussion and Analysis (MD and A) is organized in the following sections:

• Industry and Business Overview.

• Threats, Weakness and Strategies.

• Business Outlook.

• Risksand concerns.

• Internal control systems and their adequacy.

• Financial Performance and Analysis.

• Material developments in Human Resources.

• Cautionary Statement

INDUSTRY AND BUSINESS OVERVIEW

The Indian lingerie market is making a remarkable growth and the retailers are realizing that lingerie products have a higher profit margin as compared with other regular apparels. The average selling price (ASP) of lingerie varies from INR 37 per piece to INR 1,029 per piece. The Indian lingerie industry in India was worth INR 79bn in CY 2009 and is expected to be worth INR 183bn in 2014.

The Indian Lingerie Market has much evolved and it has undergone a transformational change over the past few years. There has been much innovation in the making of lingerie and technology has also influenced this. Growing number of working women, changing fashion trends, the increased awareness about betterfits, brands, colours, quality, styling, increasing per capita disposable income, rising level of media exposure and entry of large number of international brands have given the industry a new facet. Indian women have become choosy and give importance to lingerie and have moved beyond the over sensitivity to pricing.

Organized retail has also provided a pleasing facade to modern lingerie. Overall the lingerie industry in India is expected to grow at a CAGR of 18.3% over the period 2009-2014. The super-premium and premium segment contributed 15.8% to the total lingerie market in 2009 and is expected to grow to 28% by 2014. Lovable commands 20% market share in the premium category.

The key factors influencing the choice of the consumers are comfort, price, brand and durability. Comfort plays a key role in the choice ofthe consumers followed by price and brand name.

Their Company measures success in terms of customer satisfaction and quality that is built into every product. The value of commitment to quality is also cherished by each of 1447 staff members and is consciously upheld by their network comprising of 5 branches, 142 distributors and approximately 10200 Retails Outlets.

For the year ended March 31, 2012, they had a net sales of Rs. 1329.939 Millions and net profit after tax of Rs. 216.520 Millions (excluding extraordinary items), as compared to net sales of Rs. 1014.850 Millions and net profit after tax of Rs. 140.905 Millions (excluding extraordinary items) for the year ended March 31,2011.

BUSINESS OUTLOOK

OUTLOOK ON THE LINGERIE INDUSTRY IN INDIA

The lingerie industry in India is expected to grow at a CAGR of 18.3 % over the period 2009-2014. It is currently estimated at Rs. 78980.000 Millions and is expected to be worth Rs. 183246.000 Millions in 2014. This growth would be led by the super-premium, premium and mid-market segment.

A strong brand image, presence in retail infrastructure and diversifying into new retail formats positions the Company as integrated player in the growing domestic consumption story. With robust economic growth, high disposable income with the end-consumer and the rapid construction of organized retail infrastructure, the Company is confident that it is well placed to take advantage to the growth opportunities in the coming years.

The Company has purchased properties at Bangalore and has set up its new manufacturing units to enhance its manufacturing facilities by 35%.

The Company has 10200 retail outlets doing business with it as on 31 March, 2012 and further plans to open new outlets. Further it is the process of expanding its manufacturing Capacities with most modern manufacturing equipment and world class designing capabilities with a modern design studio.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 30^TH SEPTEMBER, 2012

(Rs. in Millions)

Particulars	Quarter Ended		Half Year Ended
	30.09.2012	30.06.2012	30.09.2012
	Unaudited	Unaudited	Unaudited
1. Income from Operations
(a) Net sales/Income from operations (Net of excise duty)	401.052	527.610	928.661
(b) Other Operating Income	--	--	--
Total Income From operations	401.052	527.610	928.661
2. Expenditure
a. Cost of Raw Materials consumed	107.331	113.624	220.955
b. Purchases of stock in trade	85.463	57.448	142.912
c. Changes in inventories of finished goods , work in progress and stock in trade	19.068	32.780	13.712
d. Employee benefit expenses	44.101	47.747	91.848
e. Depreciation and amortisation expense	4.890	4.682	9.572
f. Other Expenses	113.945	193.311	307.256
Total Expenses	336.662	449.592	786.254
3. Profit / (Loss) from operations before other income, finance costs and exceptional items (1-2)	64.390	78.017	142.407
4. Other Income	0.115	24.403	24.519
5. Profit / (Loss) from ordinary activities before finance costs and exceptional items (3 + 4)	64.506	102.421	166.926
6. Finance Costs	2.026	1.942	3.968
7. Profit / (Loss) from ordinary activities after finance costs but before exceptional items (5-6)	62.480	100.479	162.958
8. Exceptional items	--	--	--
9. Profit from Ordinary Activities before Tax (7-8)	62.480	100.479	162.958
10. Tax Expenses	19.274	25.285	44.559
11. Net Profit / (Loss) from ordinary activities after tax (9-10)	43.205	75.194	118.399
12. Extraordinary items (net of tax)	--	--	--
13. Net Profit / (Loss) for the period (11 + 12)	43.205	75.194	118.399
14. Share of profit / (loss) of associates*	--	--	--
15. Minority interest *	--	--	--
16. Net Profit / (Loss) after taxes, minority interest and share of profit / (loss) of associates (13+ 14+ 15)*	43.205	75.194	118.399
17. Paid-up equity share cap tal (Face Value of Rs. 10/- per Share)	168.000	168.000	168.000
18. Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year	--
19.i Earnings per share (a) Basic and diluted EPS before extraordinary items for the year to date and for the previous year) not to be annualised: b) Basic and diluted EPS After extraordinary items for the year to date and for the previous year) not to be annualised:	2.57 2.57	4.48 4.48	7.05 7.05
15. Public shareholding
- No. of shares	5550000	5550000	5550000
- Percentage of Shareholding	33.04	33.04	33.04
Promoters And Promoter Group Shareholding a) Pledged/ Encumbered
-Number of Shares	Nil	Nil	Nil
- Percentage of Shares (As a % of the total Shareholding of Promoter and Promoter Group)	Nil	Nil	Nil
- Percentage of Shares (as a % of the total share capital of the Company)	Nil	Nil	Nil
b) Non Encumbered
- Number of Shares	11250000	11250000	11250000
- Percentage of Shares (As a % of the total Shareholding of Promoter and Promoter Group)	100	100	100
-% of Shares (as a % of the total share capital)	66.96	66.96	66.96

INVESTOR COMPLAINTS	31.03.2012
Pending at the beginning of the quarter	0
Received during the quarter	13
Disposed of during the quarter	13
Remaining unresolved at the end of the quarter	0

UNAUDITED STATEMENT OF ASSETS AND LIABILITIES AS ON SEPTEMBER 30, 2012

(Rs. in Millions)

Particulars		30.09.2012
A	EQUITY AND LIABILITES
1	Shareholders' funds
	a) Share Capital	168.000
	b) Reserves and Surplus	1540.135
	Sub - total- Shareholder funds	1708.135
2	Non-current liabilities
	(a) Long-term borrowings	1.959
	(b) Deferred tax liabilities (net)	11.956
	(c) Long-term provisions	7.877
	Sub-total - Non-current liabilities	21.792
3	Current liabilities
	a) Short-term borrowings	40.797
	(b) Trade payables	112.955
	(c) Other current liabilities	119.165
	(d) Short-term provisions	34.849
	Sub-total - Current liabilities	307.765
	TOTAL - EQUITY AND LIABILITIES	2037.691
B	ASSETS
1	Non-current assets
	(a) Fixed assets	324.915
	(b) Non-current investments	0.016
	(c) Deferred tax assets (net)
	(d) Long-term loans and advances	44.178
	(e) Other non-current assets	14.931
	Sub-total - Non-current assets	384.040
2	Current assets
	(a) Current investments	970.974
	(b) Inventories	338.162
	(c) Trade receivables	280.096
	(d) Cash and cash equivalents	30.679
	(e) Short-term loans and advances	33.736
	(f) Other current assets	0.005
	Sub-total - Current assets	1653.651
	TOTAL - ASSETS	2037.691

Note:

The above Unaudited financial results have been reviewed by the Audit Committee and approved by the Board Directors at their meeting held on Friday, November 9, 2012.

The figures for the corresponding period have been regrouped, wherever necessary, to make them comparable. As the company business activity falls within a single segment, therefore disclosure requirements of the Accounting Standard

(AS) 17 "Segment Reporting" prescribed by companies (Accounting Standrads) Rules 2006 are not applicable.

Pursuant to the provisions of Clause 43/43A of the Listing Agrrement with the Exchanges, the IPO proceeds have been utilized as follows:

(Rs. in Millions)

Particulars	Object as per Prospectus	Actual Utilization
Amount received from Pre-lPO	200.000
Amount received from IPO	932.750
Utilisation of funds upto September 30, 2012
Setting up manufacturing facility to create additional capacity as Bengaluru	228.493	181.797
Expenses to be incurred for Brand Building	180.000	126.062
Brand Development Expenses	60.000	21.541
Investment in Joint Venture	250.000	-
Setting up of Exclusive Brand Outlets ("EBO's")	141.218	72.968
Setting up of Retail Store Modules for "Shop-in-Shop"	36.100	32.648
Upgradation of Design Studios	75.952	-
General Corporate Purpose	239.616	-
Public Issue Expenses	84.626	75.567

Interim Utilisation of IPO Proceeds upto 30.09.2012	Rs. in Millions
Balance Unutilised amount temporarily
invested in
Mutual Funds	622.166
Balance with Banks	-
Total	622.166

FIXED ASSETS:

v Tangible

· Land

· Plant and Equipment

· Furniture and Fixture

· Vehicles

· Office Equipment

· Computers

v Intangible

· Brands

WEB DETAILS

COMPANY PROFILE

Their Company, incorporated in the year 1987, is one of India’s leading women’s innerwear manufacturers. Their products include brassieres, panties, slips / camisoles, homewear, shapewear, foundation garments and sleepwear products. On December 26, 1995, their Company was licensed the brand “Lovable” from Lovable World Trading Company, USA. Subsequently, by an agreement dated December 23, 2000, their Company acquired the brand “Lovable” from Lovable World Trading Company, USA on an exclusive basis for the territories of India, Nepal, Sikkim and Bhutan. The innerwear products manufactured under the brand “Lovable” cater to the premium segment market in India.

“Lovable” and “Daisy Dee” are their flagship brands. Their brand “Lovable” is amongst the top three most preferred brand in women’s innerwear in India (Source: CARE Report).As part of their growth strategy, they have diversified their portfolio of brands and acquired brands like “Daisy Dee” from Maxwell Industries Limited through a memorandum of understanding dated March 18, 2004 to cater the mid segment market in India and also acquired the brand “College Style” from Levitus Trading Limited, Hong Kong through a deed of assignment dated March 17, 2009 to cater to the young segment of India. Their Company has also in the past marketed the “Vanity Fair” brand of women’s innerwear garments, which was licensed from VF Corporation Inc., USA.

Their Company’s core competency lies in understanding the prevailing trends in the women’s innerwear market and the buying preferences of their customers and accordingly manufacturing quality innerwear garments to assure their customers of product quality and fit consistency in trendy women’s innerwear. In addition, their competency also lies in identifying the gaps and foraying into the untapped women’s innerwear market segments with unique products. In the year 1995 their Company identified that the Indian market was developing and there was potential for launching and sustaining a premium women’s innerwear brand and pursuant to a license agreement with Lovable World Trading Company, USA (“LWTC”) they acquired the technical expertise for producing international standard innerwear for women. Their Company has its design studio since 1996. It was started and managed by their designers who were trained in the women’s innerwear design at Lovable USA’s studio in Atlanta.

They believe their Company has been successful in establishing one of the first international women’s innerwear brand in the Indian market. Their Company is a marketing centric organisation, which works on the consumer’s need and accordingly modifies the innerwear product and design know-how. Their Company sources certain international innerwear materials like lace and fabric for the women’s innerwear products it manufactures and retails to premium outlets. Their Company segments the customer as per their psychographics, biases and affinities, and the look and fit and features desired. Their Company has established their product segments like All Day Long, Cotton Essensuals, Encircle and Tease, at a time when women’s innerwear market was at its nascent stage. They believe that these focused segments and their customer franchise remain their strength till today.

Their Company is headquartered in Mumbai, Maharashtra and has three (03) manufacturing facilities of which two (02) are situated at Kanakapura road in Bengaluru and one (01) is situated in Roorkee, Uttarakhand. Their two (02) manufacturing facilities situated in Bengaluru, Karnataka commenced operations in the year 1995 and the year 2005, respectively and have a total installed capacity of 30 lac pieces each per annum to manufacture brassiere and panties. Going forward, they propose to implement a project for modernization and integration at a new location in Doddakalasandra, Bengaluru which will result in increase in capacity and value-addition by 25 lacs pieces per annum. The manufacturing unit situated at Roorkee, Uttarakhand commenced operation in February, 2010 and has an installed capacity of 7.5 lac pieces per annum to manufacture brassiere and panties.

Their first manufacturing facility was set up as per the specifications from LWTC. Similarly their other two manufacturing units maintain the same specifications to maintain international standards. Production lines were set up as per the layouts and configurations that were in use at their licensor’s factories. Their production managers received training at LWTC’s factory in Costa Rica, Central America. 

In order to keep up with consumer tastes and fashion cycles, their Company has set up an in house design studio for developing innerwear products and creating styles to meet the global standards. They have a design studio in Bengaluru, Karnataka with the latest equipments and a team of designers. Their design studio is equipped with latest software with requisite hardware like digitiser, pattern grader, sampling, sewing machines and sample analyser. Their design studio has a team of designers, pattern makers and sample makers who put together international trends and innovative features in their innerwear products and which are updated from visits to international women’s innerwear and raw materials fairs, industry literature and women’s innerwear websites. Their Company continuously works on the basis of consumer feedback, by visiting trendsetting international markets and meeting market participants at such markets.

MANAGEMENT

Mr. Jaipal Reddy

aged 71, is the Executive Director of our Company. He has a diploma in electrical engineering from Osmania University, Hyderabad. He was the co-founder of Maxwell Industries Limited and was the Managing Director for 14 years. He is a pioneer of the branded innerwear industry in India and he has conceptualized and established leading brands such as VIP, Frenchie etc. He is a visionary and guides our Company and its management at all the stages of its development and strategic decisions.

Mr. Vinay Reddy

aged 42, is the Chairman and Managing Director of our Company. He has a bachelor’s degree in commerce from the University of Bombay. He has over 20 years of experience in the inner wear industry. He has been with our Company since its inception. He was instrumental in obtaining license of “Lovable” brand for our Company. He has vast experience in the areas of management, marketing strategies and overall administration control and supervision. The overall day to day affairs and management decisions of our Company are under the supervision of Mr. L. Vinay Reddy. He was previously a director in Maxwell Industries.

Mr. Ashok Reddy

aged 57, is the whole time Director of our Company. He has a bachelor’s degree in commerce from Osmania University; Hyderabad. He has 34 years of experience in the inner wear industry. He has previously worked as a production executive in Hybo Hindustan for one (01) year and with Maxwell Industries Limited for 17 years as head of operations for northern India. He joined our Company in 1995 and spearheaded the establishment of our facilities and our brands. He looks after the day to day management of our manufacturing and marketing operations located at Bengaluru. He has created a dedicated manufacturing and sales team to market the Company’s inner wear products across the country.

Mr. Gopal G. Sehjpal

aged 66, is the independent Director of our Company. He has a bachelor’s degree in arts (with commerce and economics) and a master’s degree in arts (Philosophy) from the University of Delhi. He also has a diploma in personnel management from the University of Delhi. He worked at Kodak (India) for over 3 decades in the areas of sales, administration, branch management, human resources (as the head) and also as the head of a profit centre. He is currently working as a management consultant and trainer. He is also an independent director in Maxwell Industries Limited. He is a fellow member of the Institute of Management Consultants of India, life member with the Bombay Management Association and Indian Institute of Quality Management and is an individual member with Consultancy Development Centre (Ministry of Science and Technology, GoI).

Mr. Sivabalan P. Pandian

aged 52, is the independent Director of our Company. He has a bachelor’s degree in science (Chemistry) from the University of Poona, a bachelor’s and master’s degree in science (Technology in Textile Chemistry) from the University of Bombay. He started his industrial carreer from Saraspur Mills (Lalbhai Concern) He worked at Bombay Dyeing Manufacturing and Company Limited where he worked as a deputy manager in the dyeing department. He has also worked at Mafatlal Industries as a processing manager in the processing department. He is a regular contributor to trade journals specializing in new technologies in the textile and apparel industry. He is currently acting as consultant to companies engaged in the textile industry and its allied fields. He is also an independent director in Mudra Lifestyle Limited.

Mr. Dhanpat M. Kothari

aged 41, is the independent Director of our Company. He has a bachelor’s degree in commerce from the SPU College, Falna, Rajasthan. He is also a fellow member of the ICAI and is practising chartered accountant. His area of expertise is in the fields of company formation, tax and statutory audits. Mr. Kothari also appears before various authorities such sales tax and income tax authorities with respect to various matters.

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 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.54.95
UK Pound	1	Rs.88.42
Euro	1	Rs.71.71

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		61

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.