MIRA INFORM REPORT

Report Date :

16.01.2012

IDENTIFICATION DETAILS

Name :	GUETERMANN INDIA PRIVATE LIMITED
Registered Office :	205 CA Chambers, 18/12, W.E.A. Karol Bagh, New Delhi-110005
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	14.02.2005
Com. Reg. No.:	55-132991
Capital Investment / Paid-up Capital :	Rs.421.345 Millions
CIN No.: [Company Identification No.]	U51909DL2005PTC132991
TAN No.: [Tax Deduction & Collection Account No.]	DELG08205B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporters of Leather Garments, Fashion Accessories, Threads.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (20)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability to the company in under pressure. There appears huge accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a secured 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office :	205 CA Chambers, 18/12, W.E.A. Karol Bagh, New Delhi-110005, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	hpsharma1967@gmail.com
Factory :	Plot No. 59-72, Sector 6, Industrial Growth Center, HSIIDC, Bawal District Rewari-123501, Haryana, India

DIRECTORS

As on 30.09.2010

Name :

Juergen Drescher

Designation :

Director

Address :

AM Buchenbuehl 9, Waldkrich, 79183, Germany

Date of Birth/Age :

17.11.1964

Date of Appointment :

01.04.2009

Din No.:

02664043

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U51909DL2005PTC132991	GUETERMANN INDIA PRIVATE LIMITED	Additional director	01-04-09	01-04-09	Active	NO

Name :

Mr. Peter Ernst Zwicky

Designation :

Director

Address :

Schoenacherstrasse 22, Feldmeilen, 8706, Switzerland

Date of Birth/Age :

28.12.1953

Date of Appointment :

01.04.2009

Din No.:

02860216

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U51909DL2005PTC132991	GUETERMANN INDIA PRIVATE LIMITED	Additional director	01-04-09	01-04-09	Active	NO

Name :

Mr. Himanshu Mahaur

Designation :

Managing Director

Address :

2/92, Sector 5, Rajinder Nagar, Sahibabad, District Ghaziabad-201001, Uttar Pradesh, India

Date of Birth/Age :

26.04.1972

Date of Appointment :

31.08.2010

Din No.:

03266576

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U51909DL2005PTC132991	GUETERMANN INDIA PRIVATE LIMITED	Managing director	31-08-10	31-08-10	Active	NO

KEY EXECUTIVES

Name :	Ms. Bela Aggarwal
Designation :	Secretary
Address :	SD-382, II Floor, Tower Apartments, Pitampura, New Delhi-110034, India
Date of Birth/Age :	16.05.1968
Date of Appointment :	01.05.2009

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Guttermann and Company, SE, Germany	42134517
Zwick and Company, GmbH, Germany	1
TOTAL	42134518

As on 30.09.2010

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]	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporters of Leather Garments, Fashion Accessories, Threads.

Products :

Product Description	Item Code
Sewing Threads	54011014

PRODUCTION STATUS [AS ON 31.03.2010]

Particulars	Unit #	Installed Capacity* [KG]	Actual Production
Yarn	Nos.	320000	1280361

Note:

· * As certified by the management and replied upon by the auditors it being the technical matter. It is no practical to give installed capacity in sale units, because of varying nature of each sale unit in accordance with the specific requirement of the customer.

· # Sale units comprise of various size in terms of length.

GENERAL INFORMATION

Bankers :

Not Available

Facilities :

Secured Loan	As on 31.03.2010 [Rs. in Millions]	As on 31.03.2009 [Rs. in Millions]
Term loan from scheduled bank [Secured against hypothecation of vehicles]	0.000	1.048
Total	0.000	1.048
Unsecured Loan
Long term loan from Guetermann SE [Formerly Guetermann AG], the holding company	216.654	447.420
* Interest accrued and due on above	43.649	35.759
Bank overdraft [Guetermann SE (Formerly Guetermann AG) has issued corporate guarantee as collateral security]	0.000	4.369
Total	260.303	487.548

NOTE: * The company is having two loans arrangements, one is repayable by October 25, 2011 and another is repayable by January 31, 2012, Partial Repayment or conversion into equity subject to necessary approval are possible anytime.

Banking Relations :	--
Auditors :
Name :	Price Waterhouse Chartered Accountants
Address :	P-1, Aditya Vihar, Saidulajaab, Opposite B Block, Mehrauli-Badarpur, New Delhi-110030, India
Pan No.:	AAEFP3641G
Holding Company:	Guetermann SE
Fellow Subsidiaries:	· Perivale-Gutermann Limited, England · Guetermann and Company AG, Switzerland · Guetermann SAU, Spain · Guetermann, Turkey · OOO” Gutermann, Russia · Guetermann (Shanghai) Company Limited, China

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
45000000	Equity Shares	Rs.10/- each	Rs.450.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
42134518	Equity Shares	Rs.10/- each	Rs.421.345 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		421.345	162.423	71.840
2] Share Application Money		38.791	54.669	35.591
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(389.779)	(345.703)	(153.446)
NETWORTH		70.357	(128.611)	(46.015)
LOAN FUNDS
1] Secured Loans		0.000	1.048	2.018
2] Unsecured Loans		260.303	487.548	412.666
TOTAL BORROWING		260.303	488.596	414.684
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		330.660	359.985	368.669
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		432.316	458.346	44.664
Capital work-in-progress		11.492	0.839	350.029
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	128.115	84.893	43.938
	Sundry Debtors	87.805	27.387	41.488
	Cash & Bank Balances	9.266	3.296	2.002
	Other Current Assets	0.145	0.044	0.028
	Loans & Advances	22.240	23.351	14.966
Total Current Assets		247.571	138.971	102.422
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	347.332	226.887	113.806
	Other Current Liabilities	11.272	9.479	12.904
	Provisions	2.115	1.805	1.736
Total Current Liabilities		360.719	238.171	128.446
Net Current Assets		(113.148)	(99.200)	(26.024)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		330.660	359.985	368.669

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	263.075	73.952	42.882
		Other Income	65.038	5.437	10.094
		TOTAL (A)	328.113	79.389	52.976
Less	EXPENSES
		Raw Material Consumed	185.872	66.099	0.000
		Purchase for Resale	0.000	10.546	58.832
		Manufacturing Expenditure	20.747	12.687	0.000
		Personnel Expenditure	60.249	48.902	29.886
		Administrative, Selling, Distribution and Other Expenditure	68.414	47.477	41.859
		Exchange Fluctuation	0.000	24.309	39.526
		Increase in Stock of Finished Goods	(14.626)	(19.431)	(18.994)
		TOTAL (B)	320.656	190.589	151.109
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		7.457	(111.200)	(98.133)
Less	FINANCIAL EXPENSES (D)		11.120	50.080	23.057
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(3.663)	(161.280)	(121.190)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		40.413	30.014	5.786
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(44.076)	(191.294)	(126.976)
Less	TAX (H)		0.000	0.963	1.321
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(44.076)	(192.257)	(128.297)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(345.703)	(153.446)	(25.149)
	BALANCE CARRIED TO THE B/S		(389.779)	(345.703)	(153.446)
	EARNINGS IN FOREIGN CURRENCY		0.326	3.152	9.578
	IMPORTS
		Goods* [Includes goods in transit it Rs.18.660 Millions]	186.055	90.148	53.079
		Capital Goods	18.963	26.238	83.017
		Advertisement and Sales Promotion Items	0.400	1.178	0.489
	TOTAL IMPORTS		205.418	117.564	136.585
	Earnings / (Loss) Per Share (Rs.)		(1.49)	(13.16)	(18.56)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(13.43)	(242.17)	(242.18)
Net Profit Margin (PBT/Sales)	(%)	(16.75)	(258.67)	(296.10)
Return on Total Assets (PBT/Total Assets}	(%)	(6.48)	(32.03)	(86.33)
Return on Investment (ROI) (PBT/Networth)		(0.63)	1.49	2.76
Debt Equity Ratio (Total Liability/Networth)		8.83	(5.65)	(11.80)
Current Ratio (Current Asset/Current Liability)		0.69	0.58	0.80

LOCAL AGENCY FURTHER INFORMATION

CONTINGENT LIABILITIES:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Bank guarantees executed on behalf of the company, outstanding	3.350	1.725
Income tax matters The timings and extent of future cash outflows cannot be ascertained considering the nature of item and are determinable only on receipt of judgments/ decision pending with various forums/ authorities.	3.872	0.000
Total	7.222	1.725

FIXED ASSETS:

· Land Freehold

· Building

· Plant and Machinery

· Computer

· Furniture, Fixture and Electricals

· Office Equipments

· Vehicles

· Software

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.51.43
UK Pound	1	Rs.79.10
Euro	1	Rs.66.17

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	-
--CREDIT LINES	1~10	2
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		20

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.