MIRA INFORM REPORT

Report Date :

05.06.2012

IDENTIFICATION DETAILS

Correct Name :	VILARTEX - EMPRESA DE MALHAS VILARINHO, LDA
Registered Office :	Beira Alta, 94, Corvite, 4805-224
Country :	Portugal
Financials (as on) :	31.12.2010
Date of Incorporation :	02.02.1978
Com. Reg. No.:	500751676
Legal Form :	Private Independent Company
Line of Business :	manufacturer of knitted or crocheted pullovers, cardigans, jerseys, waistcoats and similar articles
No. of Employees :	109

RATING & COMMENTS

MIRA’s Rating :

B

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

Status :	Moderate
Payment Behaviour :	No Complaints
Litigation :	Clear

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 – March 31^st, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
Portugal	A2	A2

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

Company name & address

Vilartex - Empresa De Malhas Vilarinho, LDA

Beira Alta, 94

Corvite, 4805-224

Portugal

Tel: +351 253559300

Fax: +351 253559319

Synthesis

Employees: 109

Company Type: Private Independent

Incorporation Date: 02-Feb-1978

Financials in: USD (Millions)

Fiscal Year End: 31-Dec-2010

Reporting Currency: Euro

Annual Sales: 28.2

Total Assets: 30.7

Business Description

VILARTEX - EMPRESA DE MALHAS VILARINHO, LDA is primarily engaged in manufacture of knitted or crocheted pullovers, cardigans, jerseys, waistcoats and similar articles.

Industry

Industry Apparel and Accessories

ANZSIC 2006: 1340 - Knitted Product Manufacturing

NACE 2002: 1772 - Manufacture of knitted and crocheted pullovers, cardigans and similar articles

NAICS 2002: 315191 - Outerwear Knitting Mills

UK SIC 2003: 1772 - Manufacture of knitted and crocheted pullovers, cardigans and similar articles

US SIC 1987: 2257 - Weft Knit Fabric Mills

Key Executives

Name	Title
António Pinto	Managing partner
Elisabete Costa	Financial director
Xavier Ferreira	Operations manager/director
Claudino Sottomayor	Accountant
NazarE Macedo	Executive

Registered No.(PRT): 500751676

1 - Profit & Loss Item Exchange Rate: USD 1 = EUR 0.7550783

2 - Balance Sheet Item Exchange Rate: USD 1 = EUR 0.7454064

Corporate Overview

Location

Beira Alta, 94

Corvite, 4805-224

Portugal

Tel: +351 253559300

Fax: +351 253559319

Sales EUR(mil): 21.3

Assets EUR(mil): 22.9

Employees: 109

Fiscal Year End: 31-Dec-2010

Industry: Apparel and Accessories

Incorporation Date: 02-Feb-1978

Company Type: Private Independent

Quoted Status: Not Quoted

Registered No.(PRT): 500751676

Managing partner: António Pinto

Contents

Industry Codes

Business Description

Financial Data

Key Corporate Relationships

Industry Codes

ANZSIC 2006 Codes:

1340 - Knitted Product Manufacturing

NACE 2002 Codes:

1772 - Manufacture of knitted and crocheted pullovers, cardigans and similar articles

NAICS 2002 Codes:

315191 - Outerwear Knitting Mills

US SIC 1987:

2257 - Weft Knit Fabric Mills

UK SIC 2003:

1772 - Manufacture of knitted and crocheted pullovers, cardigans and similar articles

Business Description

VILARTEX - EMPRESA DE MALHAS VILARINHO, LDA is primarily engaged in manufacture of knitted or crocheted pullovers, cardigans, jerseys, waistcoats and similar articles.

Financial Data

Financials in:	EUR(mil)
Revenue:	21.3
Assets:	22.9
Current Assets:	16.1
Total Liabilities:	22.9
Issued Capital:	3.3
Net Worth:	3.9
Date of Financial Data:	31-Dec-2010

1 Year Growth

-1.1%

NA

Key Corporate Relationships

Bank:	Banif - Banco Internacional Do Funchal, Banco EspÃrito Santo, Banco Comercial Portugues

Executive report

Executives

Name	Title	Function
António Pinto	Managing partner	Managing Director
Carlos Pinto	Managing director, Managing partner	Managing Director
Carmen Pinto	Managing partner, Personnel manager	Managing Director
Ricardo Pinto	Commercial director, Managing partner	Managing Director
Xavier Ferreira	Operations manager/director	Operations Executive
Elisabete Costa	Financial director	Finance Executive
Claudino Sottomayor	Accountant	Accounting Executive
Maria Pinto	Partner	Partner
NazarE Macedo	Executive	Other

Annual Profit & Loss

	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months
Filed Currency	EUR	EUR	EUR
Exchange Rate (Period Average)	0.755078	0.719047	0.683679
Consolidated	No	No	No
Total income	29.1	30.7	34.7
Net sales	28.2	29.9	33.7
Change in stock	0.1	-0.1	0.0
Subsidies for operating costs	0.2	-	-
Supplementary operating income	-	-	0.1
Other operating income	0.7	0.9	0.1
Cost of goods sold	18.8	19.4	23.4
Cost of sales	18.8	19.4	23.4
Service costs	6.1	6.5	5.6
Total payroll costs	2.0	2.0	2.2
Fixed asset depreciation and amortisation	0.6	0.7	0.7
Other operating costs	1.1	1.4	0.3
Total financial income	-	-	0.4
Total expenses	0.3	0.5	1.1
Profit before tax	0.1	0.2	0.9
Extraordinary income	-	-	0.4
Extraordinary expenses	-	-	0.3
Other taxes	-	-	0.2
Total taxation	0.0	0.1	0.2
Net profit	0.1	0.1	0.6

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2010	31-Dec-2009	31-Dec-2008
Filed Currency	EUR	EUR	EUR
Exchange Rate	0.745406	0.696986	0.719399
Consolidated	No	No	No
Issued capital	4.4	2.9	2.8
Special reserves	0.9	1.1	-
Available reserves	-	-	1.9
Total reserves	0.3	2.2	0.2
Profits for the year	0.1	0.1	0.6
Profit brought forward from previous year(s)	-0.5	-0.7	-1.2
Capital subsidies and grants	0.0	0.0	-
Total stockholders equity	5.2	5.6	4.2
Other long-term liabilities	6.4	7.7	5.4
Trade creditors	8.4	4.5	4.8
Bank loans and overdrafts	9.7	6.5	2.2
Other loans	-	-	0.1
Other liabilities	-	-	0.9
Debts on fixed assets	-	-	0.6
Taxes	0.2	0.2	0.3
Other current liabilities	0.3	0.3	0.0
Total current liabilities	18.6	11.6	8.8
Total debts	25.5	19.8	14.7
Regularisation account	0.5	0.5	0.5
Total liabilities (including net worth)	30.7	25.4	19.0
Intangibles	0.0	0.0	1.8
Land	-	-	1.5
Buildings	-	-	4.5
Machinery and tools	-	-	0.0
Fixtures and equipment	-	-	11.5
Furniture and vehicles	-	-	2.5
Other fixed assets	-	-	0.1
Total tangible fixed assets	8.8	9.8	20.1
Other financial assets	0.0	0.0	0.0
Depreciation and amortisation	-	-	-14.4
Raw materials	-	-	4.6
Finished goods	-	-	1.2
Merchandise	-	-	0.0
Fixed assets for sale	-	-	-1.4
Net stocks and work in progress	7.5	4.0	4.4
Trade debtors	12.3	10.0	6.2
Other receivables	1.3	0.4	0.5
Doubtful receivables	-	-	-0.3
Cash and liquid assets	-	-	0.0
Money on deposit at bank(s)	0.3	0.6	0.2
Recoverable taxation	0.2	0.1	0.1
Total current assets	21.6	15.2	11.0
Prepaid expenses and deferred costs	0.3	0.4	0.4
Total assets	30.7	25.4	19.0

Annual Ratios

Financials in: USD (mil)

	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months
Filed Currency	EUR	EUR	EUR
Exchange Rate	0.745406	0.696986	0.719399
Consolidated	No	No	No
Current ratio	1.20	1.30	1.20
Acid test ratio	0.80	1.00	0.70
Total liabilities to net worth	0.21%	0.29%	0.29%
Net worth to total assets	0.17%	0.22%	0.22%
Current liabilities to net worth	3.55%	2.05%	2.08%
Current liabilities to stock	2.49%	2.91%	2.02%
Fixed assets to net worth	1.72%	1.79%	1.78%
Collection period	157.50	118.80	70.40
Stock turnover rate	3.80	7.80	7.30
Asset utilisation	1.08%	0.82%	0.59%
Creditors to sales	89.30	64.00	46.00
Asset turnover	0.93%	1.22%	1.69%
Profit margin	0.00%	0.01%	0.02%
Return on assets	0.00%	0.01%	0.03%
Shareholders' return	0.01%	0.03%	0.14%
Sales per employee	195.10	-	205.62
Profit per employee	0.50	-	3.87
Return on capital	0.01%	0.01%	0.06%
Net worth	5.2	5.6	4.2
Number of employees	109	109	112

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.52
UK Pound	1	Rs.85.29
Euro	1	Rs.68.86

INFORMATION DETAILS

Report Prepared by :

MNL

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	----

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.