MIRA INFORM REPORT

Report Date :

21.04.2012

IDENTIFICATION DETAILS

Name :	JEANS KNIT PRIVATE LIMITED
Registered Office :	21, E1 2^nd Phase, Industrial Area, Peenya, Bangalore – 560058, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.09.2004
Com. Reg. No.:	08 - 034722
Capital Investment / Paid-up Capital :	Rs. 0.100 Million
CIN No.: [Company Identification No.]	U18101KA2004PTC034722
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Readymade Garments
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (61)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 9200000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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 Office :	21, E1 2^nd Phase, Industrial Area, Peenya, Bangalore – 560058, Karnataka, India
Tel. No.:	91-80-28397511/42865000/42865100/42865200
Fax No.:	91-80-28398320/28371237
E-Mail :	ffi@fibresnfabrics.com
Website :	www.fibresnfabrics.com

DIRECTORS

As on 30.09.2011

Name :

Mr. Anupam Suryakant Kothari

Designation :

Director

Address :

PARC St. Roman, 7, Avenue De Saint, Roman, Monte Carlo, Monaco - 98000

Date of Birth/Age :

22.06.1967

Date of Appointment :

20.09.2004

DIN No.:

01696556

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	U18101KA2002PTC030686	FIBRES AND FABRICS INTERNATIONAL PRIVATE LIMITED	Managing director	27/06/2002	27/06/2002	-	Active	NO
2	U18101KA2004PTC034722	JEANS KNIT PRIVATE LIMITED	Director	20/09/2004	20/09/2004	-	Active	NO

Name :

Mrs. Laxmi Narayan Gaur

Designation :

Additional Director

Address :

14-69, 8 MN Raj Building 52 – CRS, 4 – BLK, Bangalore – 560010, Karnataka, India.

Date of Birth/Age :

21.10.1956

Date of Appointment :

21.12.2009

DIN No.:

00167068

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	U18101KA2007PTC042723	Doctor Denim Textiles Private Limited	Director	7/5/2007	7/5/2007	-	Under Process of Striking off	NO
2	U18101KA2002PTC030686	FIBRES AND FABRICS INTERNATIONAL PRIVATE LIMITED	Director	30/09/2010	21/12/2009	-	Active	NO
3	U18101KA2004PTC034722	JEANS KNIT PRIVATE LIMITED	Additional director	21/12/2009	21/12/2009	-	Active	NO

Name :

Mr. Jacqueline Antonette Thomas

Designation :

Alternate Director

Address :

428, 8^th D Main, 4^th Cross HRBR Layout, Banasawadi Extension, Bangalore – 560043, Karnataka, India

Date of Birth/Age :

28.04.1973

Date of Appointment :

12.01.2007

DIN No.:

00926874

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	U18101KA2002PTC030686	FIBRES AND FABRICS INTERNATIONAL PRIVATE LIMITED	Alternate director	12/1/2007	14/08/2006	-	Active	NO
2	U18101KA2004PTC034722	JEANS KNIT PRIVATE LIMITED	Alternate director	12/1/2007	14/08/2006	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Anupam Suryakant Kothari	10000
Jacqueline Antonette Thomas	01
Total	10001

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Readymade Garments

PRODUCTION STATUS

As on 31.03.2010

Particulars	Unit	Actual Production
Garments	Pcs	3607975

GENERAL INFORMATION

Customers :

Not Available

No. of Employees :

Not Available

Bankers :

Standard Chartered Bank, Raheja Towers, Sixth Floor, No. 26-27, MG Road, Bangalore – 560001, Karnataka, India

(Rs. In Millions)

Facilities :

Secured Loan	As on 31.03.2011	As on 31.03.2010
Other debt secured	346.201	138.756
Total	346.201	138.756
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Loans Director unsecured	149.093	143.455
Total	149.093	143.455

Banking Relations :	-
Auditors :
Name :	ASA and Associates Chartered Accountant
Address :	A – 2 Ground Floor, Akruti Antara Apartment, No. 11/1 Haudin Road, Banglore – 560042, Karnataka, India
Tel. No.:	91-80-41510751
PAN.:	AAASA4690A
Associates :	· Tintoria Astico S.R.I, Italy · Fibers and Fabrics International Private Limited, India

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10001	Equity Shares	Rs.10/- each	Rs.0.100 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		0.100	0.100	0.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2308.640	2169.967	1234.695
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2308.740	2170.067	1234.795
LOAN FUNDS
1] Secured Loans		346.201	138.756	5.205
2] Unsecured Loans		149.093	143.455	322.496
TOTAL BORROWING		495.294	282.211	327.701
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2804.034	2452.278	1562.496
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1177.124	1236.202	1431.131
Capital work-in-progress		2.855	46.600	0.842
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		11.186	11.187	11.187
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1049.612	713.353	431.632
	Sundry Debtors	830.108	499.428	310.762
	Cash & Bank Balances	10.663	152.854	66.125
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	445.172	545.409	236.997
Total Current Assets		2335.555	1911.044	1045.516
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	242.609	195.318	627.881
	Other Current Liabilities	393.100	250.386	206.013
	Provisions	86.977	307.051	92.286
Total Current Liabilities		722.686	752.755	926.180
Net Current Assets		1612.869	1158.289	119.336
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2804.034	2452.278	1562.496

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income		4292.504	4284.979
		Other Income		97.125	127.378
		TOTAL (A)	3883.889 (Included by Accretion / (Decretion) to stock	4389.629	4412.357
Less	EXPENSES
		Materials Consumed		1641.831	1933.178
		Direct Expenses		389.627	318.082
		Administration and Other Expenses		876.750	822.382
		Selling and Distribution Expenses		109.648	645.532
		Preliminary Expenses		0.000	0.030
		Accretion / (Decretion) to stock		[89.012]	20.847
		Prior Period Adjustments		0.401	0.188
		TOTAL (B)	NA	2929.245	3740.239
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			1460.384	672.118
Less	FINANCIAL EXPENSES (D)			18.410	33.252
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			1441.974	638.866
Less/ Add	DEPRECIATION/ AMORTISATION (F)			297.894	224.028
	PROFIT BEFORE TAX (E-F) (G)		436.609	1144.080	414.838
Less	TAX (I)		89.475	208.809	53.437
	PROFIT AFTER TAX (G-I) (J)		347.134	935.271	361.401
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1974.115	1038.844	787.589
Less	APPROPRIATIONS
		Transfer to General Reserve	NA		36.140
		Dividend			63.256
		Tax on Dividend			10.750
	BALANCE CARRIED TO THE B/S		2069.088	1974.115	1038.844
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	3679.954	3665.203
	TOTAL EARNINGS			3679.954	3665.203
	IMPORTS
		Raw Materials and Components of Spare Parts		1991.015	1886.831
		Capital Goods	NA	127.671	551.503
	TOTAL IMPORTS			2118.686	2438.334
	Earnings Per Share (Rs.)		34.710	93.518	36.137

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	8.93	21.30	8.19
Net Profit Margin (PBT/Sales)	(%)	NA	26.65	9.24
Return on Total Assets (PBT/Total Assets}	(%)	18.69	59.80	39.67
Return on Investment (ROI) (PBT/Networth)		0.18	0.52	0.33
Debt Equity Ratio (Total Liability/Networth)		0.31	0.34	0.75
Current Ratio (Current Asset/Current Liability)		3.23	2.53	1.12

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	No
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	No
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
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

Corporate identity number of the company	U18101KA2004PTC034722
Name of the company	JEANS KNIT PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	21, E1 2^nd Phase, Industrial Area, Peenya, Bangalore – 560058, Karnataka, India Email: ffi@fibresnfabrics.com
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	Standard Chartered Bank, Raheja Towers, Sixth Floor, No. 26-27, MG Road, Bangalore – 560001, Karnataka, India Shekar.subramanyarajeurs@sc.com
Nature of instrument creating charge	UNATTESTED MEMORANDUM OF HYPOTHECATION
Date of instrument Creating the charge	14.03.2012
Amount secured by the charge	Rs.350.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As negotiated and agreed Terms of Repayment Repayable on Demand Margin As applicable Extent and Operation of the charge Charge extends by way of first charge on all the assets bought out of this facility throughout the period of sanctioned Limits.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of whole of the present and future plant and machinery, furniture and fittings, equipment, computer hardware, computer software, machinery spares, tools and accessories and other movables belonging to the company purchased out of this Loan facility

FIXED ASSETS

· Goodwill

· Leasehold Land

· Improvements to Buildings

· Garments Production Machines

· Garment Process Plant

· Infrastructure

· Water Pollution Control Equipment

· Plant and Machinery

· Material Handling Equipment

· Cut Room Equipment

· Electrical Fittings

· Office Equipments

· IT Equipments

· Software

· Furniture and Fixtures

· Vehicle

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.51.50
UK Pound	1	Rs.81.99
Euro	1	Rs.67.54

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		61

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.