MIRA INFORM REPORT

Report Date :

16.03.2012

IDENTIFICATION DETAILS

Name :	PRATEEK APPARELS PRIVATE LIMITED
Registered Office :	# 113, Krishna Reddy Industrial Area, 7^th Mile, Kudlu Gate, Hosur Road, Bangalore-560068, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	10.01.1995
Com. Reg. No.:	08-016925
Capital Investment / Paid-up Capital :	Rs.210.000 Millions
CIN No.: [Company Identification No.]	U85110KA1995PTC016925
TAN No.: [Tax Deduction & Collection Account No.]	BLRP01095D BLRP01087C
PAN No.: [Permanent Account No.]	AAACP7190B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Importer and Exporter of Ready Made Garments.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 4200000
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.

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/Head Office :	# 113, Krishna Reddy Industrial Area, 7^th Mile, Kudlu Gate, Hosur Road, Bangalore-560068, Karnataka, India
Tel. No.:	91-80-42815327/42815400 / 42815301
Fax No.:	91-80-42815314/42815300 / 42815314
E-Mail :	common@bgl.vsnl.net.in rhegde@prateekapparels.com srinathsairam@prateekapparels.com enquiry@prateekapparels.com
Website :	http://www.prateekapparels.com
Area :	5000 sq. ft.
Location :	Rented
Factory 1:	714, S.R.K.Plaza, Garvebhavipalya, Hosur Main Road, Bangalore – 560068, Karnataka, India
Tel No.:	91-80-25732989/25733880
Factory 2:	½, Begur Road, Bommanahalli Industrial Area, Bangalore – 560068, Karnataka, India
Tel No.:	91-80-25736266/25736267
Factory 3:	Kudlu Gate, Hosur Road, Bangalore, Karnataka, India

DIRECTORS

AS ON 28.09.2011

Name :	Mr. Pradeep Phulchand Agarwal
Designation :	Chairman
Address:	118 – B, Dariya Mahal – 80, Napeansea Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	27.06.1963
Date of Appointment	28.02.2007
DIN No.:	00026779

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U51900MH1983PTC030776	PHULCHAND EXPORTS PRIVATE LIMITED	Director	06-09-83	06-09-83	01-11-10	Active	NO
2	L45309GJ1988PLC011139	ADVANCE LIFESTYLES LIMITED	Managing director	01-10-09	30-09-91	26-10-09	Active	NO
3	U63040MH1998PTC115275	RIGHTCHOICE TOURS - N - TRAVELS PRIVATE LIMITED	Director	16-10-99	16-10-99	-	Active	NO
4	U05190KA2004PTC034048	MUNCH DESIGN WORKSHOP PRIVATE LIMITED	Director	31-05-04	31-05-04	03-12-09	Active	NO
5	U85110KA1995PTC016925	PRATEEK APPARELS PRIVATE LIMITED	Director	30-09-07	28-02-07	-	Active	NO
6	U51500KA2007PLC042306	PRATEEK LIFESTYLE LIMITED	Director	30-03-07	30-03-07	-	Amalgamated	NO
7	U93000MH2007PTC173879	PRASAR VISIONS PRIVATE LIMITED	Director	06-09-07	06-09-07	26-10-10	Active	NO
8	U18101KA2007PLC043877	PRATEEK SPINTEX LIMITED	Director	14-09-07	14-09-07	10-09-10	Active	NO
9	U17120KA2007PTC044555	PRAKANZ TEX PRIVATE LIMITED	Director	04-12-07	04-12-07	-	Strike off	NO
10	U29100MH1982PTC026181	CHANDRA PRABHA ENGINEERS PRIVATE LIMITED	Additional director	01-09-09	01-09-09	15-01-10	Active	NO
11	U45309MH1982PTC026170	STEEFAB ENGINEERING COMPANY PRIVATE LIMITED	Additional director	01-09-09	01-09-09	21-12-09	Active	NO

Name :	Mr. Raghu Anni Hegde
Designation :	Director
Address:	135/A Jakkasandra Block, Koramangala, Bangalore – 560034, Karnataka, India
Date of Birth/Age :	18.03.1966
Date of Appointment	18.05.2005
DIN No.:	00187905

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U85110KA1995PTC016925	PRATEEK APPARELS PRIVATE LIMITED	Director	18-05-05	18-05-05	-	Active	NO
2	U51500KA2007PLC042306	PRATEEK LIFESTYLE LIMITED	Director	27-09-08	21-07-08	-	Amalgamated	NO
3	U18101KA2007PLC043877	PRATEEK SPINTEX LIMITED	Director	15-09-11	10-09-10	-	Active	NO
4	U18101KA2011PTC057857	BILTEEK FASHIONS PRIVATE LIMITED	Director	25-03-11	25-03-11	-	Active	NO

Name :	Mr. Sanjay Gopal Dalmia
Designation :	Additional Director
Address :	D-005, Olive Block, Raheja Residency, Koramangala, Bangalore 560 034, Karnataka, India
Date of Birth/Age :	07.10.1975
Date of Appointment	14.01.2006
DIN No.:	01401883

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U05131KA1995PTC016999	PRATEEK GARMENTS PRIVATE LIMITED	Director	29-09-01	29-09-01	-	Strike off	NO
2	U17119GJ1992PTC017888	PRATEEK REALTY PRIVATE LIMITED	Director	03-03-02	03-03-02	24-08-09	Amalgamated	NO
3	U05190KA2004PTC034048	MUNCH DESIGN WORKSHOP PRIVATE LIMITED	Director	31-05-04	31-05-04	03-12-09	Active	NO
4	U92100MH2000PTC127419	NFC ALUMINA PRIVATE LIMITED	Director	03-08-04	03-08-04	01-12-09	Strike off	NO
5	U85110KA1995PTC016925	PRATEEK APPARELS PRIVATE LIMITED	Director	14-01-06	14-01-06	-	Active	NO
6	U18101KA2004PTC034700	HUBLI APPARELS PRIVATE LIMITED	Director	29-09-07	16-03-07	-	Amalgamated	NO
7	U51500KA2007PLC042306	PRATEEK LIFESTYLE LIMITED	Director	30-03-07	30-03-07	-	Amalgamated	NO
8	U17120KA2007PTC044555	PRAKANZ TEX PRIVATE LIMITED	Director	04-12-07	04-12-07	-	Strike off	NO
9	U18101KA2007PLC043877	PRATEEK SPINTEX LIMITED	Director	15-09-11	10-09-10	-	Active	NO
10	U93000MH2007PTC173879	PRASAR VISIONS PRIVATE LIMITED	Director	17-09-11	06-05-11	-	Active	NO

Name :	Mr. Sujit Govindrao Parsatwar
Designation :	Director
Address:	301 B, Evrest Cleo Patra Park Road, Vile Parle, Mumbai-400052, Maharashtra, India
Date of Birth/Age :	30.10.1963
Date of Appointment	28.02.2007
DIN No.:	01174288

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U85110KA1995PTC016925	PRATEEK APPARELS PRIVATE LIMITED	Director	30-09-07	28-02-07	-	Active	NO
2	U61100MH2002PLC135732	SEVEN ISLANDS SHIPPING LIMITED	Additional director	29-07-10	29-07-10	22-09-10	Active	NO
3	U93000MH2007PTC173879	PRASAR VISIONS PRIVATE LIMITED	Director	26-10-10	26-10-10	-	Active	NO
4	U05190KA2004PTC034048	MUNCH DESIGN WORKSHOP PRIVATE LIMITED	Director	24-09-11	15-08-11	-	Active	NO

Name :	Mr. Uttam Rao Kale
Designation :	Director
Address:	X 703, Adarsh Palm Retrea, Outer RG Road, Devarabisanahalli, Bangalore-560103, Karnataka, India
Date of Birth/Age :	26.02.1968
Date of Appointment	01.01.2011
DIN No.:	03402973

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U85110KA1995PTC016925	PRATEEK APPARELS PRIVATE LIMITED	Director	28-09-11	01-01-11	-	Active	NO
2	U18101KA2011PTC057857	BILTEEK FASHIONS PRIVATE LIMITED	Director	25-03-11	25-03-11	-	Active	NO

Name :	Mr. Anantapadmanabhan Anantaram Sarma
Designation :	Nominee Director
Address:	EMP, 20/704, Evershine Thakur Village, Kandivali East, Mumbai – 400101, Maharashtra, India
Date of Birth/Age :	24.10.1960
Date of Appointment	18.07.2011
DIN No.:	00624900

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U65992MH1993NPL074024	ASSOCIATION OF INVESTMENT BANKERS OF INDIA	Director	29-09-05	29-09-05	14-01-08	Active	NO
2	U67190MH1999PLC120866	SIDBI VENTURE CAPITAL LIMITED	Whole-time director	12-07-11	12-07-11	-	Active	NO
3	U65991MH1999PLC120867	SIDBI TRUSTEE COMPANY LIMITED	Additional director	12-07-11	12-07-11	-	Active	NO
4	U31902KA2007PTC044766	HHV SOLAR TECHNOLOGIES PRIVATE LIMITED	Nominee director	18-07-11	18-07-11	-	Active	NO
5	U85110KA1995PTC016925	PRATEEK APPARELS PRIVATE LIMITED	Nominee director	28-09-11	18-07-11	-	Active	NO
6	U29299PN1998PTC114575	KRAFT POWERCON INDIA PRIVATE LIMITED	Nominee director	18-07-11	18-07-11	-	Active	NO
7	U71110DL2000PTC189230	CARZONRENT (INDIA) PRIVATE LIMITED	Additional director	14-09-11	14-09-11	-	Active	NO
8	U31909GJ1994PLC022605	CHAMPION AGRO LIMITED	Nominee director	24-09-11	24-09-11	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Srinath G. Reddy
Designation :	Secretary
Address :	89:87, Sainil Ayam Gatti Geriexl 11 Stage, Heml Rajarajeshwari Nggar, Bangalore-560098, Karnataka, India
Date of Birth/Age :	02.01.1963
Date of Appointment :	10.04.2008
PAN No.:	ACYPR4892H

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2011

Names of Shareholders	No. of Shares
Pradeep Phulchand Agarwal	6280000
Prateek Pradeep Agarwal	580000
Parameshwri Devi Agarwal	480000
Phulchand Exports Limited, India	6960000
SIDBI Trustee Company Limited NA, India	4000000
Phulchand Agarwal	1200000
Rivian International Private Limited, India	500000
Jhunj Hunuwala NL	100000
Pramod Panduranga Timblo	500000
Networth Trading Pte Limited, Singapore	400000
Total	21000000

AS ON 28.09.2011

Equity Share Breakup	Percentage of Holding
Category
Venture capital	19.05
Bodies corporate	37.43
Directors or relatives of directors	40.66
Other	2.86
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Importer and Exporter of Ready Made Garments.

Products :

Product Description	Item Code
Readymade Shirts/ Trousers	6201.00
Fabrics / Retails Garments and Accessories	5207.00

Brand Name:

• Coupon
• F Square

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Actual Production
Readymade Garments
Own Production	Pcs	2591150
Through Job Workers	Pcs	40115

Note: Installed capacity can not be quantified on account of a large variety of products that can be manufactured with varying specification.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Centurion Bank, Cunningham Road, Bangalore – 560002, Karnataka
• Canara Bank, Prime Corporate Branch II, Varma Chambers, 2^nd Floor, Homji Street, Fort, Mumbai – 400001, Maharashtra
• Kotak Mahindra Bank
• The Lakshmi Vilas Bank Limited, Bangalore Main Branch, B.V.K. Iyengar Road, Bangalore - 560009, Karnataka, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee Term Loans Banks Secured	243.147	5.380
Working Capital Loans Banks Secured	603.989	549.929
Other Debt Secured	0.608	0.122
Interest Accrued Due Other Debt Secured	7.629	4.097
Total	855.373	559.528
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Loans Directors Unsecured	0.000	0.500
Total	0.000	0.500

Banking Relations :	--
Auditors :
Name :	Walker Chandiok and Company Chartered Accountants
Address :	Wings, First Floor, 16/1, Cambridge Road, Halasur, Bangalore-560008, Karnataka, India
Tel. No.:	91-80-42430700
Fax No.:	91-80-41261228
E-Mail :	bengaluru@wcgt.in
PAN No.:	AAAFW4298E
Subsidiaries :	Prateek Spintex Limited CIN No.:U18101KA2007PLC043877 Munch Desing Workshop Private Limited CIN No.:U05190KA2004PTC034048
Related Parties :	Phulchand Exports Private Limited CIN No.: U51900MH1983PTC030776

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
27000000	Equity Shares	Rs.10/- each	Rs.270.000 Millions
1500000	Preferences Shares	Rs.100/- each	Rs.150.000 Millions
	Total		Rs.420.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
21000000	Equity Shares	Rs.10/- each	Rs.210.000 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		210.000	210.000	210.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		846.562	826.273	864.556
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1056.562	1036.273	1074.556
LOAN FUNDS
1] Secured Loans		855.373	559.528	497.046
2] Unsecured Loans		0.000	0.500	1.400
TOTAL BORROWING		855.373	560.028	498.446
DEFERRED TAX LIABILITIES		4.143	6.399	37.860
TOTAL		1916.078	1602.700	1610.862
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		512.398	443.249	473.136
Capital work-in-progress		18.718	22.134	18.469
INVESTMENT		12.409	1.651	1.651
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1005.021	848.340	904.809
	Sundry Debtors	702.481	496.510	360.427
	Cash & Bank Balances	28.540	34.006	12.748
	Other Current Assets	10.029	0.773	0.441
	Loans & Advances	503.663	404.773	355.347
Total Current Assets		2249.734	1784.402	1633.772
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	554.633	403.215	440.798
	Other Current Liabilities	297.422	226.636	58.471
	Provisions	25.126	18.885	16.897
Total Current Liabilities		877.181	648.736	516.166
Net Current Assets		1372.553	1135.666	1117.606
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1916.078	1602.700	1610.862

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
SALES
	Income	3563.000	2144.900	2290.700
	Other Income	43.500	34.000	34.800
	TOTAL	3606.500	2178.900	2325.500
EXPENSES
	Office Expenses
	Administrative Expenses	3537.100	2211.800	2271.800
	Advertising Expenses
	Financial Expenses
	TOTAL	3537.100	2211.800	2271.800
PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		69.400	(32.900)	53.700
DEPRECIATION/ AMORTISATION		50.400	37.700	51.000
PROFIT / (LOSS) BEFORE TAX		19.000	(70.600)	2.700
TAX		(1.289)	(32.300)	12.200
PROFIT / (LOSS) AFTER TAX		20.289	(38.300)	(9.500)
PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		53.800	92.100	118.300
BALANCE OF PROFIT AND LOSS ACCOUNT AS AT 1 APRIL 2008 OF ERSTWHILD TRANSFEROR COMPANIES		0.000	0.000	(34.100)
THE DIFFERENCE BETWEEN THE CARRYING VALUE OF INVESTMENT IN ERSTWHILE TRANSFEROR COMPANIES IN THE COMPANY BOOK AND OPENING BALANCE OF SHARE CAPITAL OF ERSTWHILE TRANSFEROR COMPANIES		0.000	0.000	33.800
DEFERRED TAX LIABILITY OF ERSTWHILE TRANSFEROR COMPANIES AS AT 1^ST APRIL 2008		0.000	0.000	14.800
PRELIMINARY AND PRE OPERATIVE EXPENSES OF ERSTWHILE TRANSFEROR COMPANIES AS AT 1^ST APRIL 2008 WRITTEN		0.000	0.000	1.600
BALANCE CARRIED TO THE B/S		74.100	53.800	92.100
EARNINGS IN FOREIGN CURRENCY
	Export Earnings	0.000	9.176	10.722
TOTAL EARNINGS		0.000	9.176	10.722
IMPORTS
	Accessories	14.463	7.287	9.339
	Capital Goods	6.432	2.641	0.000
	Spars	0.042	0.598	0.000
	Raw Material	0.332	0.000	0.142
	Garment and Others	0.000	0.000	1.746
TOTAL IMPORTS		21.269	10.526	11.227
Earnings / (Loss) Per Share (Rs.)		0.97	(1.82)	0.45

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.56	(1.76)	(0.41)
Net Profit Margin (PBT/Sales)	(%)	0.53	(3.29)	0.12
Return on Total Assets (PBT/Total Assets}	(%)	0.69	(3.17)	0.13
Return on Investment (ROI) (PBT/Networth)		0.02	(0.07)	0.00
Debt Equity Ratio (Total Liability/Networth)		1.64	1.17	0.94
Current Ratio (Current Asset/Current Liability)		2.56	2.75	3.17

LOCAL AGENCY FURTHER INFORMATION

NOTE:

The registered office of the company has been shifted from Madhuvan Vihar, No. 703, 1^st Floor, 3^rd Block, 6^th ‘B’ Cross, Near BDA Shopping Complex, Koramangala, Bangalore-560034, Karnataka, India to the present address w.e.f. 01.03.2010

BACKGROUND:

Subject was incorporated on 10 January 1995 and is engaged in the manufacture and sale of apparels serving leading brands in the domestic market.

Subject is also engaged in carrying on the business of ‘Value-for-Money’ stores at various locations across India, for the sale of different brands of merchandise including ready-made clothing, footwear, lifestyle products, home furnishing and allied products, cosmetics, etc.

REVIEW OF OPERATIONS AND FUTURE PROSPECTS:

The Company’s total revenue on consolidated basis Rs.3606.500 Millions and profit before depreciation Rs.69.400 Millions and profit before Income Tax is Rs.19.000 Millions. The Company is quite hopeful that the coming quarters will see better sales and performance of the Company.

Bankers Charges Report as per Registry

Corporate identity number of the company	U85110KA1995PTC016925
Name of the company	PRATEEK APPARELS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	# 113, Krishna Reddy Industrial Area, 7^th Mile, Kudlu Gate, Hosur Road, Bangalore-560068, Karnataka, India E-mail : srinathsairam@prateekapparels.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10269595
Type of charge	Book debts Movable property (not being pledge) Others (Stocks, Movable Fixed Assets etc.)
Particular of charge holder	Canara Bank, Prime Corporate Branch-II, 2nd Floor, Verma Chambers, Homji Street, Fort, Mumbai – 400001, Maharashtra, India E-mail : suyashri@vsnl.com
Nature of instrument creating charge	Supplemental Joint Deed of Hypothecation (SJDH) dated 26.08.2011
Date of instrument Creating the charge	26.08.2011
Amount secured by the charge	Rs.1060.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per sanction letter No. PCB-II/CR 231/S-7692/2011 dated 28.07.2011 or as stipulated by bank from time to time. Terms of Repayment As per sanction letter No. PCB-II/CR 231/S-7692/2011 dated 28.07.2011 or as stipulated by bank from time to time. Margin As per sanction letter No. PCB-II/CR 231/S-7692/2011 dated 28.07.2011 or as stipulated by bank from time to time. Extent and Operation of the charge Credit limits granted by CB consortium enhanced from Rs.860.000 Millions to Rs.1060.000 Millions. (CB-Rs.790.000 Millions and LVB-Rs.270.000 Millions). Security by way of pari passu charge on present and future stocks of RM,SIP, SF, FG lying at Co's premises or godowns at Bangalore or elsewhere, and the Coupon Store and FSquare Store and stocks at all Retail Outlets of Co. wheresoever situate, Receivables, B/d etc. due and owing to Co., and movable. Fixed Assets, Plant and Machinery, des. in Sch to SJDH given earlier, shall continue as security for enhanced limit. Others Canara Bank is designated as the Lead Bank of the CB Consortium consisting of Canara Bank (CB) and The Lakshmi Vilas Bank Limited (LVB).
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of present and future stocks of RM, SIP, SF, FG lying at Co's premises or godowns at Bangalore or elsewhere and the Coupon Store and F Square Store and stocks at all Retail Outlets of the Company. Hypothecation of present and future Receivables, Book Debts etc. due and owing to the Co. in the course of its business Hypothecation of present and future movable Fixed Assets, having WDV of Rs.340.600 Millions as per ABS 31.03.2010 lying at Co's premises or elsewhere or in transit.
Particulars of the present modification	Credit limits granted by CB consortium enhanced from Rs.860.000 Millions to Rs.1060.000 Millions. (CB-Rs.790.000 Millions and LVB-Rs.270.000 Millions). Security by way of pari passu charge on present and future stocks of RM,SIP, SF, FG lying at Co's premises or godowns at Bangalore or elsewhere, and the Coupon Store and FSquare Store and stocks at all Retail Outlets of Co. wheresoever situate, Receivables, B/d etc. due and owing to Co., and movable. Fixed Assets, Plant and Machinery, des. in Sch to SJDH given earlier, shall continue as security for enhanced limit.

FIXED ASSETS:

• Leasehold Land
• Leasehold Improvements
• Plant and Machinery
• Office Equipments
• Computers
• Furniture and Fixtures
• Vehicles

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.45.37
UK Pound	1	Rs.73.25
Euro	1	Rs.62.68

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	4
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		44

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.