MIRA INFORM REPORT

Report Date :

16.03.2012

IDENTIFICATION DETAILS

Name :	CLASSIC LINENS INTERNATIONAL PRIVATE LIMITED
Registered Office :	Unit No.13 and 14, SDF III, Phase – II, Madras Export, Processing Zone, Mepz, Tambaram, Chennai – 600045, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.02.2000
Com. Reg. No.:	18-044216
Capital Investment / Paid-up Capital :	Rs.0.776 Million
CIN No.: [Company Identification No.]	U17111TN2000PTC044216
TAN No.: [Tax Deduction & Collection Account No.]	CHEC04248G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Human Textile Products.
No. of Employees :	100 (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 250000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. 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.

INFORMATION PARTED BY

Name :	Mr. Laxmanan
Designation :	Finance Manager
Contact No.:	91-44-22626030
Date :	15.03.2012

LOCATIONS

Registered Office/ Factory :	Unit No.13 and 14, SDF III, Phase – II, Madras Export, Processing Zone, Mepz, Tambaram, Chennai – 600045, Tamilnadu, India
Tel. No.:	91-44-22626030/ 40
Fax No.:	91-44-22626040/ 28363690
E-Mail :	bharat@indokem.com
Website :	http://www.classiclines.com
Location :	Owned

DIRECTORS

(AS ON 28.09.2011)

Name :	Mr. Bharat Bir Mohindra
Designation :	Director
Address :	3-E, “Manasarovar”, Binny Road, Chennai – 600086, Tamilnadu, India
Date of Birth/Age :	07.12.1953
Date of Appointment :	21.02.2000
DIN No.:	01321261
Name :	Mr. Milind Vallabh Mungikar
Designation :	Director
Address :	3-E, “Manasarovar”, Binny Road, Chennai – 600086, Tamilnadu, India
Date of Birth/Age :	22.04.1966
Date of Appointment :	28.01.2004
DIN No.:	02935855

KEY EXECUTIVES

Name :	Mr. Laxmanan
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 28.09.2011)

Names of Shareholders	No. of Shares
Bharat Bir Mohindra	64960
Rashmi Mohindra	1000
Milind Vallabh Mungikar	11640
Total	77600

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Human Textile Products.
Imports :
Products :	Raw Materials
Countries :	· China · Taiwan
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Cushions	Nos.	NA	NA	502,311.00
Pillows and Bolster	Nos.	NA	NA	866,073.00

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

100 (Approximately)

Bankers :

· Vijaya Bank

Egmore Branch, 123, Rukmani Lakshmipathi Road, Egmore, Chennai – 600008,

Tamilnadu, India

· Citi Bank N.A.

163, Anna Salai, Second Floor, Chennai - 600002, Tamilnadu, India

· Small Industries Development Bank of India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Working Capital
From Vijaya Bank – Packing Credit (Packing Credit Limit – secured by way of Demand promissory note, hypothecation of stock, plant and machinery and book debts and charges on fixed deposits and personal guarantee of directors)	24.533	11.869
Term Loans
From SIDBI (term Loan – Secured by way of hypothecation of all movable plant, machinery, equipment, tools spares and all other assets acquired under the scheme)	1.215	1.739
Total	25.748	13.608

Banking Relations :	--
Auditors :
Name :	A. V. Deven and Company Chartered Accountant
Address :	B-10, Pleasant Apartments No.50, Taylors Road, Chennai – 600010, Tamilnadu, India
PAN No.:	AAAFA1156H

CAPITAL STRUCTURE

(AS ON 28.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Share	Rs.10/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
77600	Equity Share	Rs.10/- each	Rs.0.776 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		0.776	0.776	0.776
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		60.484	49.914	34.591
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		61.260	50.690	35.367
LOAN FUNDS
1] Secured Loans		25.748	13.608	12.051
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		25.748	13.608	12.051
DEFERRED TAX LIABILITIES		1.455	1.263	0.889
TOTAL		88.463	65.561	48.307
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		15.306	14.188	10.072
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	13.957	21.757	9.730
	Sundry Debtors	11.183	0.000	9.593
	Cash & Bank Balances	3.395	2.457	2.068
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	54.820	43.463	36.623
Total Current Assets		83.355	67.677	58.014
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	4.914	5.608	10.165
	Other Current Liabilities	2.947	6.862	7.110
	Provisions	2.337	3.834	2.504
Total Current Liabilities		10.198	16.304	19.779
Net Current Assets		73.157	51.373	38.235
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		88.463	65.561	48.307

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	132.652	112.386	108.327
		Other Income	3.121	1.164	4.395
		TOTAL	135.773	113.550	112.722
Less	EXPENSES
		TOTAL	121.648	93.838	99.672
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		14.125	19.712	13.050
Less/ Add	DEPRECIATION/ AMORTISATION		1.126	0.797	0.663
	PROFIT BEFORE TAX		12.999	18.915	12.387
Less	TAX		7.149	11.363	7.227
	PROFIT AFTER TAX		5.850	7.552	5.160
	EARNINGS IN FOREIGN CURRENCY		106.628	102.619	101.108
	IMPORTS
		Raw Materials	41.305	51.629	--
	TOTAL IMPORTS		41.305	51.629	--
	Earnings Per Share (Rs.)		75.39	197.46	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.31	6.65	4.58
Net Profit Margin (PBT/Sales)	(%)	9.80	16.83	11.43
Return on Total Assets (PBT/Total Assets}	(%)	13.18	23.11	18.19
Return on Investment (ROI) (PBT/Networth)		0.21	0.37	0.35
Debt Equity Ratio (Total Liability/Networth)		0.59	0.59	0.90
Current Ratio (Current Asset/Current Liability)		8.17	4.15	2.93

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Sundry Creditors
- Trade	2.743	5.493	7.527
- Expenses	2.171	0.115	2.638
Total	4.914	5.608	10.165

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	-----
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of Contact person	Yes
Turnover of Firm for last two years	Yes
Profitability for last three years	-----
Reasons for variation <> 20%	-----
Estimation for coming financial year	Yes
Capital in the business	Yes
Details of sister concerns	-----
Major Suppliers	No
Major Customers	No
Payments Terms	Yes
Export/ Imports Details (If applicable)	Yes
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	No
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	No
Incorporation details is applicable	-----
Last Accounts filed at ROC	-----
Major Shareholders, if available	-----

PERFORMANCE DURING THE YEAR

This is the Eleventh year of Operations of the company. During the year review the company has achieved turnover of Rs.132.600 Millions as compared to Rs.112.400 Millions last year registering a increase of 18% and a higher growth in revenues is expected in the year 2011-12.

CONTINGENT LIABILITY (AS ON 31.03.2011)

Bills discounted with bankers amounting to Rs.3.019 millions

FORM 8:

Corporate identity number of the company	U17111TN2000PTC044216
Name of the company	CLASSIC LINENS INTERNATIONAL PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Unit No.13 and 14, SDF III, Phase II, Madras Export, Processing Zone, MEPZ, Tambaram, Chennai – 600045, Tamilnadu, India bharat@indokem.com
This form is for	Creation of charge
Type of charge	Book Debts Movable Property Others: Stock, Plant and Machinery
Particular of charge holder	CITI Bank N.A. 163, Anna Salai, Second Floor, Chennai – 600002, Tamilnadu, India karthikeyan1.j@citi.com
Nature of description of the instrument creating or modifying the charge	Goods Security Agreement.
Date of instrument Creating the charge	13.02.2012
Amount secured by the charge	Rs.49.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest As may be stipulated by the bank from time to time. Terms of Repayment All facilities are repayable on demand. Margin As agreed from time to time Extent and Operation of the charge First exclusive charge by hypothecation of all the Borrower's moveable and non moveable assets (including plant and machinery, stocks and book debts) forming part of its current assets both present and future.
Short particulars of the property charged	First exclusive charge by hypothecation of all the Borrower's moveable and non moveable assets (including plant and machinery, stocks and book debts) forming part of its current assets both present and future.

FIXED ASSETS:

· Machinery

· Coffee Vending Machine

· Computer

· Furniture and Fittings

· Electrical Equipment

· Vehicles

· Office Equipment

· Water Tank

· Printer and Scanner

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.50.22
UK Pound	1	Rs.78.64
Euro	1	Rs.65.54

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	NO
--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.