MIRA INFORM REPORT

Report Date :

01.04.2013

IDENTIFICATION DETAILS

Name :	HOWRAH STORES LIMITED
Registered Office :	63, G T Road (South), Howrah – 711101, West Bengal
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	31.03.2000
Com. Reg. No.:	21-091544
Capital Investment / Paid-up Capital :	Rs.7.500 Millions
CIN No.: [Company Identification No.]	U18101WB2000PLC091544
PAN No.: [Permanent Account No.]	AABCH1508C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Trader of Readymade Garments.
No. of Employees :	42 (Approximately) (17 Permanent and 25 Casual)

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Profitability of the company appears to be low. However, Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Anil Khetan
Designation :	Manager
Contact No.:	91-9831928775
Date :	30.03.2013

LOCATIONS

Registered Office :	63, G T Road (South), Howrah – 711101, West Bengal, India
Tel. No.:	91-33-26413806/ 3986
Mobile No.:	91-9831928775 (Mr. Anil)
Fax No.:	Not Available
E-Mail :	vkk41@yahoo.co.in hstore@vsnl.net
Location :	Owned

DIRECTORS

(AS ON 29.09.2012)

Name :

Mr. Vijay Satyanarayan Jhunjhunwala

Designation :

Whole-time Director

Address :

55/1, Kabi Bharati Sarani (Lake Road), Kolkata – 700029, West Bengal, India

Date of Birth/Age :

22.03.1966

Date of Appointment :

01.04.2011

Voter ID No.:

MFN3358819

PAN No.:

ACKPJ8808H

DIN No.:

00233439

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17219WB1992PLC056339	TURTLE LIMITED	Whole-time director	18/03/2008	19/08/1992	02/09/2010	Active	NO
2	U18101WB2000PLC091544	HOWRAH STORES LIMITED	Whole-time director	01/04/2011	31/03/2000	-	Active	NO
3	U45201WB2005PTC101472	JAMWATI CONSTRUCTION PRIVATE LIMITED	Director	01/02/2005	01/02/2005	-	Active	NO
4	U51109WB2006PTC110025	RION SALES PRIVATE LIMITED	Director	21/06/2006	21/06/2006	27/02/2008	Amalgamated	NO
5	U51109WB2007PTC112987	SHUBHAN AGENCIES PRIVATE LIMITED	Director	02/02/2007	02/02/2007	27/03/2008	Amalgamated	NO
6	U18204WB2009PTC131961	SOLACE FASHION PRIVATE LIMITED	Director	14/01/2009	14/01/2009	-	Active	NO

Name :

Mrs. Saroj Vijay Jhunjhunwala

Designation :

Whole-time Director

Address :

55/1, Lake Road, Kolkata – 700029, West Bengal, India

Date of Birth/Age :

28.07.1970

Date of Appointment :

01.04.2011

Voter ID No.:

MFN3358827

PAN No.:

ACVPJ5407H

DIN No.:

00233223

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U18101WB2000PLC091544	HOWRAH STORES LIMITED	Whole-time director	01/04/2011	31/03/2000	-	Active	NO
2	U51109WB2006PTC110216	RHYTHM VANIJYA PRIVATE LIMITED	Director	29/06/2006	29/06/2006	27/02/2008	Amalgamated	NO
3	U51909WB2007PTC113008	DARIKA TRADECON PRIVATE LIMITED	Director	03/02/2007	03/02/2007	27/02/2008	Active	NO
4	U18204WB2009PTC131961	SOLACE FASHION PRIVATE LIMITED	Director	14/01/2009	14/01/2009	-	Active	NO
5	U45201WB2005PTC101472	JAMWATI CONSTRUCTION PRIVATE LIMITED	Director	01/09/2010	01/09/2010	-	Active	NO

Name :

Mr. Abadhya Vijay Jhunjhunwala

Designation :

Director

Address :

55/1, Lake Road, Kolkata – 700029, West Bengal, India

Date of Birth/Age :

23.12.1992

Date of Appointment :

01.01.2011

PAN No.:

ALAPJ8608E

DIN No.:

03377326

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U18204WB2009PTC131961	SOLACE FASHION PRIVATE LIMITED	Director	01/01/2011	01/01/2011	Active	NO
2	U18101WB2000PLC091544	HOWRAH STORES LIMITED	Director	01/01/2011	01/01/2011	Active	NO

Name :

Mr. Satyanarayan Jhunjhunwalla

Designation :

Whole-time Director

Address :

55/1, Lake Road, Kolkata – 700029, West Bengal, India

Date of Appointment :

31.03.2000

DIN No.:

00233385

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17219WB1992PLC056339	TURTLE LIMITED	Director	19/08/1992	19/08/1992	21/03/2011	Active	NO
2	U18101WB2000PLC091544	HOWRAH STORES LIMITED	Whole-time director	31/03/2000	31/03/2000	-	Active	NO
3	U45201WB2005PTC101472	JAMWATI CONSTRUCTION PRIVATE LIMITED	Director	01/02/2005	01/02/2005	01/09/2010	Active	NO
4	U18101WB2008PTC121474	SWATHE GARMENTS PRIVATE LIMITED	Whole-time director	01/12/2012	07/01/2008	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Anil Khetan
Designation :	Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 29.09.2012)

Names of Shareholders	No. of Shares
Saroj Jhunjhunwalla	182600
Vijay Jhunjhunwalla	297200
Abadhya Jhunjhunwala	26500

(AS ON 30.09.2012)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Trader of Readymade Garments.

Products :

Products Description	Item Code No.
Clothes Synthetic/ Cotton	6108.11
Shirt of Man Made Fibre	610832.02

Brand Name :

London Bridge and London Tower

(Trading Brands = Monte Carlo, Killer, Hoffman, Thunder, Raymond, Grasim, Vimal and Arvind Mills)

Terms :

Selling :

Cash

Purchasing :

Credit (30 days)

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

42 (Approximately) (17 Permanent and 25 Casual)

Bankers :

· Bank of Maharashtra

547, G. T. Road, Howrah – 711101, West Bengal, India

(Cash Credit Limit and Current A/c)

· Vijaya Bank

Howrah Branch, West Bengal, India

· ICICI Bank

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
From Bank of Maharashtra (Against hypothecation of stock of raw materials, work-in-progress, finished good, stores and spare, book debts and equitable mortgage of land as collateral security and guarantee by directors.	1.998	2.195
From ICICI Bank (Secured by hypothecation of Car and guarantee by director)	0.364	0.000
Total	2.362	2.195

Banking Relations :	--
Auditors :
Name :	S. K. Singhnia and Company Chartered Accountant
Address :	19-A, Jawaharlal Nehru Rod, Kolkata – 700087, West Bengal, India
Tel. No.:	91-33-22495211/ 5224
Fax No.:	91-33-22496831
PAN No.:	AADFM7398A
Associates/Subsidiaries :	· Solace Fashion Private Limited Activity: Manufacturer of Garment · Jamwati Construction Private Limited

CAPITAL STRUCTURE

(AS ON 31.03.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs.15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs.10/- each	Rs.7.500 Millions

The Reconciliation of the number of Equity shares Outstanding at the beginning and at the end of the reporting period

Particulars	No. of Shares
Opening	750,000
Issued	--
Closing	750,000

Equity Shares in the company held by each shareholder holding more than 5% shares specifying the number of shares held

Particulars	% of Shares	No. of Shares
Saroj Jhunjhunwalla	24.35%	182,600
Vijay Jhunjhunwalla HUF S/C	32.49%	243,700
Vijay Jhunjhunwalla IND S/C	39.63%	297,200
		723,500

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FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		7.500	7.500	7.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		5.532	4.765	4.062
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		13.032	12.265	11.562
LOAN FUNDS
1] Secured Loans		2.362	2.195	2.946
2] Unsecured Loans		4.500	0.000	0.000
TOTAL BORROWING		6.862	2.195	2.946
DEFERRED TAX LIABILITIES		0.239	0.301	0.355
TOTAL		20.133	14.761	14.863
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.328	5.312	5.479
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	15.576	14.320	11.395
	Sundry Debtors	0.000	0.000	0.000
	Cash & Bank Balances	0.831	0.637	0.338
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	5.225	1.312	3.541
Total Current Assets		21.632	16.269	15.274
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	6.025	6.376	4.134
	Other Current Liabilities	0.112	0.074	0.119
	Provisions	0.690	0.370	1.637
Total Current Liabilities		6.827	6.820	5.890
Net Current Assets		14.805	9.449	9.384
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		20.133	14.761	14.863

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from Operations	71.838	71.555	65.348
		Other Income	0.476	0.115	1.135
		TOTAL (A)	72.314	71.670	66.483
Less	EXPENSES
		Purchase of Stock-in-trade	56.779	58.014	48.769
		(Increase)/ Decrease in stock	(1.256)	(2.924)	0.845
		Manufacturing Expenses	2.291	2.650	1.928
		Employee Benefit Expenses	3.600	3.736	3.749
		Rates and Taxes	0.014	0.016	0.019
		Directors Remuneration	4.500	4.500	4.500
		Selling Expenses	1.664	1.649	1.373
		Miscellaneous Expenses	0.440	0.205	0.000
		Other Administrative Expenses	2.489	2.195	2.392
		TOTAL (B)	70.521	70.041	63.575
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.793	1.629	2.908
Less	FINANCIAL EXPENSES (D)		0.216	0.088	0.172
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.577	1.541	2.736
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.552	0.520	0.567
	PROFIT BEFORE TAX (E-F) (G)		1.025	1.021	2.169
Less	TAX (H)		0.258	0.319	0.478
	PROFIT AFTER TAX (G-H) (I)		0.767	0.702	1.691
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	1.662	0.171
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	0.200	0.200
	BALANCE CARRIED TO THE B/S		NA	2.164	1.662
	Earnings Per Share (Rs.)		1.02	0.94	2.25

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.06	0.98	2.54
Net Profit Margin (PBT/Sales)	(%)	1.43	1.43	3.32
Return on Total Assets (PBT/Total Assets}	(%)	3.80	4.73	10.45
Return on Investment (ROI) (PBT/Networth)		0.08	0.08	0.19
Debt Equity Ratio (Total Debt/Networth)		0.53	0.18	0.25
Current Ratio (Current Asset/Current Liability)		3.17	2.39	2.29

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
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	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

------------------------------------------------------------------------------------------------------------------------------

UNSECURED LOANS

Particulars	31.03.2012	31.03.2011
	(Rs. In Millions)
From Directors (Not Bearing Interest)
Abadhaya Jhunjhunwalla	1.000	0.000
Saroj Jhunjhunwalla	2.500	0.000
Vijay Jhunjhunwalla	1.000	0.000
Total	4.500	0.000

------------------------------------------------------------------------------------------------------------------------------

COMPANY PERFORMANCE

The company’s gross sales turnover increased to Rs.71.837 Millions from Rs.71.555 Millions in the previous year.

Despite increase in sales growth there was low margin due to the local unorganized traders, shift of the consumers to new markers, malls etc. the company expects to obtain synergical benefits by trying to control the operation and procurement cost with increased performance so as to improve on the margin front.

BUSINESS OUTLOOK

Overall buoyancy in the economy couples with higher disposable income with the consumers has credited a momentum in the marker to growth.

The company expects to achieve growth of 10% in Volumes in a focused and oriented manner.

------------------------------------------------------------------------------------------------------------------------------

FIXED ASSETS:

· Land and Building

· Computer

· Furniture and Fittings

· Generator

· Motor Car

· Office Equipments

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 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 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.54.39
UK Pound	1	Rs.82.32
Euro	1	Rs.69.54

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		34

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	-

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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.