MIRA INFORM REPORT

Report Date :

02.10.2012

IDENTIFICATION DETAILS

Name :	TXT CARBON FASHIONS INC
Registered Office :	433 Rue Chabanel Ouest, Ste 400, Montreal, Quebec H2N 2J4
Country :	Canada
Date of Incorporation :	09.12.1997
Legal Form :	Federal Corporation – Profit
Line of Business :	Importer and distributor of tops, sweaters and shirts.
No. of Employees :	40

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Status :	Satisfactory
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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
Canada	A1	A1

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

CANADA - ECONOMIC OVERVIEW

As an affluent, high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and affluent living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, uranium, and electric power. Given its great natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economiccrisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada''s major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the financial sector''s tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010 and 2011 and plans to balance the budget by 2015. In addition, the country''s petroleum sector is rapidly becoming an even larger economic driver with Alberta''s oil sands significantly boosting Canada''s proven oil reserves, ranking the country third in the world behind Saudi Arabia and Venezuela.

Source : CIA

Company name and address

Company name: TXT CARBON FASHIONS INC (in English)

MODES TXT CARBON INC. (in French)

Address: 433 Rue Chabanel Ouest, Ste 400, Montreal, Quebec H2N 2J4

Canada

Telephone: +1 514-382-8271

Fax: +1 514-382-1703

Website: www.txtcarbon.com

Corporate ID#: 3442764

State: Federal

Judicial form: Federal Corporation – Profit

Date incorporated: December 9, 1997

Stock: -

Value: -

Name of manager: Frank NICODEMO

ACTIVITIES & OPERATIONS

IST

Business:

The Company is importer and distributor of tops, sweaters and shirts.

Today, TXT’s products are being sold by more than 600 stores across Canada, representing more than 1,100 retail doors.

Its customers range from independent boutiques to medium price point department stores and specialty stores.

TXT covers the country from coast to coast with sales agencies established in each of the key markets in Canada.

Brands include NICO and JONAS.

The Company imports mainly from China.

CAE: 2432

Staff: 40

Operations & branches:

At the headquarters, we find the corporate office and showroom, on lease.

SHAREHOLDERS & MANAGERS

Shareholders:

1^st shareholder:

Barry MINTZ

800 Bld Rene Levesque Ouest, Ste 2220, Montreal, Quebec H3B 1X9 – Canada

2^nd shareholder :

The Varda Levy Family Trust

2216 Chemin Fulton, Mont-Royal, Quebec H3Y 2Z4 - Canada

Management:

Varda LEVY is the President

Replaced Tony SIMOES on August 1, 2011

Frank NICODEMO is Vice President, Secretary and Treasurer.

Erminio ZAPITELLI is Vice President

As far as we know, they are not involved in other local corporations.

Subsidiaries

And partnership: None

FINANCIALS

In Canada, privately held corporations are not required to publish any financials.

On a direct call, a financial assistant controlled the present report.

Sales declared for year 2011 is in the range of CAD 12,000,000+ verse

CAD 11,400,000=

Net profit 2011 is the range of CAD 600,000.

Banks: Royal Bank of Canada

LEGAL FILINGS

Legal filings & complaints:

As of today date, there is no legal filing pending with the Courts.

Secured debts summary: None

COMPANY CREDIT HISTORY

Trade references:

Date reported: August 2012

High credit: CAD 7,000

Now owing: 0

Past due: 0

Last purchase: July 2012

Line of business: Office supply

Paying status: On terms

Date reported: August 2012

High credit: CAD 60,000+

Now owing: 0

Past due: 0

Last purchase: July 2012

Line of business: Payroll

Paying status: As agreed

Date reported: August 2012

High credit: CAD 600

Now owing: 0

Past due: 0

Last purchase: July 2012

Line of business: Telecommunications

Paying status: On terms

Domestic credit history:

Domestic credit history appears as follow:

Monthly Payment Trends - Recent Activity

Date	Balance	Current	Up to 30 DBT	31-60 DBT	61-90 DBT	>90 DBT
04/12	$3,800	100%	0%	0%	0%	0%
05/12	$3,900	100%	0%	0%	0%	0%
06/12	$3,400	100%	0%	0%	0%	0%
07/12	$3,600	100%	0%	0%	0%	0%
08/12	$3,100	100%	0%	0%	0%	0%
09/12	$3,300	100%	0%	0%	0%	0%

National Credit Bureaus gave a satisfying credit rating.

According to our credit analysts, during the last 6 months, payments are made on terms.

International credit history:

Payments of imports are currently made on terms.

Other comments:

The Company maintains a regular business.

The bank confirmed a regular account.

The Company is in good standing.

This means that all local and federal taxes were paid on due date.

Last report was filed on January 4, 2012.

The risk is low.

Our opinion:

A business connection may be conducted.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.78
UK Pound	1	Rs.85.16
Euro	1	Rs.67.78

INFORMATION DETAILS

Report Prepared by :

PRL

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.