MIRA INFORM REPORT

Report Date :

19.07.2012

IDENTIFICATION DETAILS

Name :	NAGESH KNITWEARS PRIVATE LIMITED
Registered Office :	E-40, Masjid Mothgreater Kailash-III, Delhi – 110048
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	24.11.1980
Com. Reg. No.:	55-011068
Capital Investment / Paid-up Capital :	Rs.1.701 Millions
CIN No.: [Company Identification No.]	U74899DL1980PTC011068
TAN No.: [Tax Deduction & Collection Account No.]	DELN05099D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Readymade Knit Garments (Baby Wear, Girls Wear, Man Wear)
No. of Employees :	1000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 510000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There appears dip in profitability of the company. However, trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for normal 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 – 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

INFORMATION PARTED BY

Name :	Mr. Rohit Mehra
Designation :	Director
Contact No.:	91-9888488888
Date :	14.07.2012

LOCATIONS

Registered Office :	E-40, Masjid Mothgreater Kailash-III, Delhi – 110048, India
Tel. No.:	91-11-29218251
Mobile No.:	91-9888488888 (Mr. Rohit Mehra )
Fax No.:	91-161-2781471
E-Mail :	info@nageshknitwears.com
Website :	http://www.nageshknitwear.com
Area :	500 Sq. ft
Location :	Owned
Factory :	G T Road (West)  Ludhiana - 141008, Punjab, India
Tel. No.:	91-161-2781469 /6601200 (100 lines) / 2781472
Fax No.:	91-161-2781468
Area :	6 acre
Location :	Owned

DIRECTORS

As on 30.09.2011

Name :	Mr. Dharam Pal Mehra
Designation :	Chairman
Address :	398, Rani Jhansi Road, Civil Lines, Ludhiana - 141001, Punjab, India
Date of Birth/Age :	26.09.1925
Date of Appointment :	24.11.1980
DIN No.:	00379067
Name :	Mrs. Aruna Kumari Mehra
Designation :	Director
Address :	398, Rani Jhansi Road, Civil Lines, Ludhiana - 141001, Punjab, India
Date of Birth/Age :	27.06.1930
Date of Appointment :	24.11.1980
DIN No.:	00380912
Name :	Mr. Ashok Kumar Mehra
Designation :	Whole-time director
Address :	398, Rani Jhansi Road, Civil Lines, Ludhiana - 141001, Punjab, India
Date of Birth/Age :	02.02.1953
Date of Appointment :	24.11.1980
DIN No.:	00977942
Name :	Mr. Rajan Kumar Mehra
Designation :	Whole-time director
Address :	398, Rani Jhansi Road, Civil Lines, Ludhiana - 141001, Punjab, India
Date of Birth/Age :	05.04.1958
Date of Appointment :	24.11.1980
DIN No.:	00380314
Name :	Mr. Mukesh Mehra
Designation :	Whole-time director
Address :	398, Rani Jhansi Road, Civil Lines, Ludhiana - 141001, Punjab, India
Date of Birth/Age :	14.08.1959
Date of Appointment :	24.11.1980
DIN No.:	00380353
Name :	Mr. Varun Mehra
Designation :	Whole-time director
Address :	398, Rani Jhansi Road, Civil Lines, Ludhiana - 141001, Punjab, India
Date of Birth/Age :	06.08.1979
Date of Appointment :	01.06.2000
DIN No.:	00380409
Name :	Mr. Rahul Mehra
Designation :	Whole-time director
Address :	398, Rani Jhansi Road, Civil Lines, Ludhiana - 141001, Punjab, India
Date of Birth/Age :	24.11.1987
Date of Appointment :	01.08.2008
DIN No.:	02265920
Name :	Mr. Rohit Mehra
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Ashok Kumar Mehra S/O. Se. Dharam Pal Mehra	42500
Rajan Kumar Mehra	42500
Mukesh Mehra	42500
Aruna Kumari Mehra W/O. Sh. Dharam Pal Mehra	42500
Dharam Pal Mehra S/O. Sh. Ram Sahai	100
Total	170100

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Readymade Knit Garments (Baby Wear, Girls Wear, Man Wear)

Products :

· Baby Wear

· Girls Wear

· Mens Wear

Product Description	ITC Code
Cotton Garments	74
Woollen Garments	71

Exports :

Products :

Baby Wear, Girls Wear, Man Wear

Countries :

· Europe

· US

Terms :

Selling :

Cash / Credit

Purchasing :

Cash / Credit

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Actual Production
Wooll and Woollen Blen.	Kgs.	59650
Cotton. And Cotton. Blen. Garments	Kgs.	117275
Yarn	Kgs.	249587

GENERAL INFORMATION

Suppliers :

· Aarti International Limited

· Aarti Knitwears

· Abhuot International

· Aditya Kumar

· Advance Advertising Agencies

· Aggarwal Yarn Agency

· Ahuja Plastic Product

· Ajay Kumar ( Broker )

· A.K Industries

· Alok Nath Knitwear

· Alpex Exports Private Limited

· Aman Machinery Works

· Amarjeet Hand Knitting Works

· A Mar Jit Singh

· Amit Enterprises

· Amit Enterprises Anand Puri

· Amrik Singh

· A.M. Textiles and Knitwears Limited

· Anurag Computers

· Apex Computer

· Aps Express Logistics

· Arihant Roto Products Private Limited

· Arora Textile Corp

· A R. Trading Company

· Aryan's Freight Forwarders Private Limited

· Ashish Printing Press

· Ashwani Kumar Khurana

· Audhey Singh

· Auro Automation

· Avanti Plastics

Customers :

Wholesalers and End Users

· Marks and Spencer

· Aadit Apparel

· A D Fabrics

· Apparels and Linens India Private Limited

· Arr Sons Clothing

· B Hag At Exports

· Chawla Knitting Works

· Cots Pun Company

· Daimond Knitting Mills

· Diana Hosiery

· Du Pareilau Meme, France

· Eveline International

· Fancy Enterprises

· Fashion Tex

· Food Corporation of India

· G G Fabrics

· Girnar Hosiery Works

· Gold Shine Knitwears

· Goyal Knitwears Private Limited

· Har Lal and Sons Exports Private Limited

· H Sagar Knitwears

· Jagdish Hosiery Emporium

· Jai Ganesh Knitwear

· Jai Ram Faishions

· Janta Fabrics India

· J P Knit Fabrics

· Kay Jain Hosiery

· K. Lall Fabrics

· Knits Fashion

No. of Employees :

1000 (Approximately)

Bankers :

· State Bank of India, Overseas Branch, Ludhiana - 141003, Punjab, India

· HDFC Bank Limited, HDFC Bank Housesenapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India

· Punjab National Bank, New Delhi

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
State Bank of India C/C.	0.000	0.004
State Bank of India EPC	7.019	16.340
State Bank of India (MTL)	9.197	0.000
State Bank of India PCFC	21.693	0.000
State Bank of India SLC	2.419	0.000
Total	40.328	16.344
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Mrs. Aruna Kumari (Director)	18.500	0.000
Mr. Ashok Kumar (Director)	5.000	0.000
Mr. Rajan Mehra (Director)	5.000	1.600
Mr Mukesh Mehra (Director)	5.000	1.600
Northern Trading and Impex	0.000	1.600
Total	33.500	4.800

Banking Relations :	--
Auditors :
Name :	Pawan Puri and Associates Chartered Accountants
Address :	Sco-30,Second Floor, Feroze Gandhi Market, Ludhiana – 141001, Punjab, India
PAN.:	AABFP6779Q

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.10/- each	Rs.3.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
170100	Equity Shares	Rs.10/- each	Rs.1.701 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		1.701	1.701	1.701
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		126.946	122.342	113.239
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		128.647	124.043	114.940
LOAN FUNDS
1] Secured Loans		40.328	16.344	0.020
2] Unsecured Loans		33.500	4.800	0.000
TOTAL BORROWING		73.828	21.144	0.020
DEFERRED TAX LIABILITIES		5.875	5.993	5.000
TOTAL		208.350	151.180	119.960
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		95.001	87.051	63.185
Capital work-in-progress		2.534	3.059	2.584
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	118.077	60.777	44.168
	Sundry Debtors	44.519	21.336	35.895
	Cash & Bank Balances	8.087	8.465	10.085
	Other Current Assets	19.710	8.473	8.187
	Loans & Advances	7.181	13.081	14.699
	Goods in Transit	0.000	0.000	0.005
Total Current Assets		197.574	112.132	113.039
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	66.123	45.108	40.830
	Other Current Liabilities	17.334	1.892	7.302
	Provisions	3.302	4.062	10.716
Total Current Liabilities		86.759	51.062	58.848
Net Current Assets		110.815	61.070	54.191
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		208.350	151.180	119.960

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	381.395	300.224	335.088
		Other Income	30.792	20.848	26.571
		TOTAL (A)	412.187	321.072	361.659
Less	EXPENSES
		Office Expenses
		Administrative Expenses	386.280	296.875	325.975
		Advertising Expenses
		TOTAL (B)	386.280	296.875	325.975
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		25.907	24.197	35.684
Less	FINANCIAL EXPENSES (D)		6.283	1.114	0.416
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		19.624	23.083	35.268
Less/ Add	DEPRECIATION/ AMORTISATION (F)		13.339	11.238	8.438
	PROFIT BEFORE TAX (E-F) (G)		6.285	11.845	26.830
Less	TAX (H)		1.682	2.742	10.425
	PROFIT AFTER TAX (G-H) (I)		4.603	9.103	16.405
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		84.082	77.979	70.544
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	3.000	5.103
		Dividend	0.000	0.000	0.867
		Tax on Dividend	0.000	0.000	3.000
	BALANCE CARRIED TO THE B/S		88.685	84.082	77.979
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	258.642	201.985	254.166
	TOTAL EARNINGS		258.642	201.985	254.166
	IMPORTS
		Raw Materials	2.106	0.073	0.049
		Stores & Spares	0.099	1.024	0.837
		Capital Goods	7.718	19.635	0.282
	TOTAL IMPORTS		9.923	20.732	1.168
	Earnings Per Share (Rs.)		27.06	53.52	96.44

Particulars	31.03.2012
Sales Turnover (Approximately)	500.000

Expected Sales (2012-13) : Rs.600.000 Millions

The above information has been parted by Mr. Rohit Mehra 

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.12	2.84	4.54
Net Profit Margin (PBT/Sales)	(%)	1.65	3.95	8.01
Return on Total Assets (PBT/Total Assets}	(%)	2.15	5.95	15.22
Return on Investment (ROI) (PBT/Networth)		0.05	0.10	0.23
Debt Equity Ratio (Total Liability/Networth)		1.25	0.58	0.51
Current Ratio (Current Asset/Current Liability)		2.28	2.20	1.92

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	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	No
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	--
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

RESULTS OF OPERATIONS

During the year Company did business of manufacturing and exporting of Woollen, Woolen Blended and Cotton Hosiery Knitwears. The total sales of the company during the period was increased to Rs.381.395 Millions as compared to Rs.300.224 Millions in the previous year showing a increase of 12.70% and the Profits have decreased to Rs.6.285 Millions in current year as compared Lo Rs.11.845 Millions in previous year due to huge increase in cost of Materials during the year 2010-11.

Trade References

· Marks and Spencer

· Owm. Oswal Spinning Mills

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U74899DL1980PTC011068
Name of the company	NAGESH KNITWEARS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	E-40, Masjid Mothgreater Kailash-III, Delhi - 110048, India info@nageshknitwear.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10339556
Type of charge	Immovable property
Particular of charge holder	HDFC Bank Limited, HDFC Bank Housesenapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India RBBform8@hdfcbank.com
Nature of instrument creating charge	Memorandum Recording Past Transactions of Creation of Mortgage by Delivery of Title Deeds.
Date of instrument Creating the charge	04.04.2012
Amount secured by the charge	Rs.99.380 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest at the rate as may be communicated by the Bank from time to time. Terms of Repayment Working Capital facility shall be repayable on Demand. Term Loan shall be repayable in suitable installments. Margin As may be stipulated by the Bank from time to time. Extent and Operation of the charge The Company created an equitable mortgage by way of deposit of title deeds in respect of its immovable properties as stated under item No.15 as security for the due repayment of Rs.99.380 Millions by the Company including principal amount of the Facility, interest, liquidated damages, costs, charges and expenses etc.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Immovable property being situated at village Jugiana, opposite Thapar factory, Cinema Road, Ludhiana, measuring 19320 sq. yds. Teh and District Ludhiana.
Particulars of the present modification	The Company created a mortgage by deposit of title deeds in respect of its immovable property being lying and situated at Teh and District Ludhiana as further security for repayment of monies due and payable under credit facilities of Rs.99.380 Millions sanctioned by the Bank to the Company.

Fixed Assets

· Land and Building

· Plant and Machinery

· Vehicles

· Furniture and Fixtures

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.55.34
UK Pound	1	Rs.86.55
Euro	1	Rs.67.95

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	NTH

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	5
--CREDIT LINES	1~10	5
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.