MIRA INFORM REPORT

Report Date :

01.04.2013

IDENTIFICATION DETAILS

Name :	SOLACE FASHION PRIVATE LIMITED
Registered Office :	493/C/A G T Road (South), Howrah Mills Company Limited Compound, Godown No.5, Howrah – 711102, West Bengal
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	14.01.2009
Com. Reg. No.:	21-131961
Capital Investment / Paid-up Capital :	Rs.5.200 Millions
CIN No.: [Company Identification No.]	U18204WB2009PTC131961
PAN No.: [Permanent Account No.]	AAMCS6890D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Garments.
No. of Employees :	50 (Approximately) (Permanent – 15 and Casual – 35)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. It has shown improvement in its performance capacity and financial strength during 2012. Trade relations are reported as fair. Business is active. Payment terms are slow but correct. The company can be considered 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 – 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/ Factory :	493/C/A G T Road (South), Howrah Mills Company Limited Compound, Godown No.5, Howrah – 711102, West Bengal, India
Tel. No.:	91-33-26373066/ 26373067/ 26413986
Mobile No.:	91-9831928775 (Mr. Anil Khetan)
Fax No.:	91-33-26373067
E-Mail :	vijaysolace@gmail.com vkk41@yahoo.co.in sapl@tabardfashions.com solacefashion@gmail.com sfplinfo@tabardfashions.com lk_bohania@yahoo.com
Website :	http://www.tabardfashions.com
Location :	Rented
Dealers :	Located at: · West Bengal · Maharashtra · Chandigarh · Jammu and Kashmir · Orrisa · Bihar · Assam · Uttar Pradesh · Rajasthan · Tamilnadu · Jharkhand

DIRECTORS

(AS ON 29.09.2012)

Name :

Mr. Saroj 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 :

14.01.2009

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. Vijay Jhunjhunwalla

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 :

14.01.2009

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 :

Mr. Abadhya 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

KEY EXECUTIVES

Name :	Mr. Anil Khetan
Designation :	Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 29.09.2012)

Names of Shareholders	No. of Shares
Vijay Jhunjhunwalla	110000
Saroj Jhunjhunwala	220000
Vijay Jhunjhunwalla (HUF)	130000
Abadhya Jhunjhunwala	35000
Justify Distribution Private Limited, India	7500
Kailashpati Merchandise Private Limited, India	7500
Truthful Agencies Private Limited, India	10000
Total	520000

(AS ON 30.09.2012)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	95.00
Other top fifty shareholders	5.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Garments.
Brand Name :	“TABARD“
Terms :
Selling :	Credit (90 days)
Purchasing :	Credit (60 days)

PRODUCTION STATUS (AS ON 31.03.2012)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Fabrics	MTRS	Not Specified	Not Specified	338818.87
Shirt	PCS	Not Specified	Not Specified	312791

GENERAL INFORMATION

Customers :

Retailers

No. of Employees :

50 (Approximately) (Permanent – 15 and Casual – 35)

Bankers :

· Bank of Maharashtra

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

(Cash Credit Limit and Current A/c)

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term Loans From Bank	0.563	0.972
Loan Repayable on Demand From Banks	9.022	4.292
Total	9.585	5.264

Banking Relations :	--
Auditors :
Name :	V. Kejariwal and Company Chartered Accountant
Address :	63, Radha Bazar Street, 3^rd Floor, Room No.30, Kolkata – 700001, West Bengal, India
Tel. No.:	91-33-22429043
PAN No.:	AENPK2918L
Associates/Subsidiaries :	· Howrah Stores Limited Address: 63, G T Road (South), Howrah – 711101, West Bengal, India Activity: Trader of Garments.

CAPITAL STRUCTURE

(AS ON 29.09.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
550000	Equity Shares	Rs.10/- each	Rs.5.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
520000	Equity Shares	Rs.10/- each	Rs.5.200 Millions

(AS ON 31.03.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
600000	Equity Shares	Rs.10/- each	Rs.6.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
520000	Equity Shares	Rs.10/- each	Rs.5.200 Millions

Reconciliation of equity shares

Shares outstanding at the beginning of the year	395,000
Shares issued during the year	125,000
Shares Bought back during the year	--
Shares outstanding at the end of the years	520,000

Equity Shareholders holding more than 5% of total Equity shares

1. Abadhya Jhunjhunwalla
Number of Equity Shares	35,000
Percentage of total Equity Capital	6.75
2. Saroj Jhunjhunwalla
Number of Equity Shares	220,000
Percentage of total Equity Capital	42.31
3. Vijay Jhunjhunwalla
Number of Equity Shares	110,000
Percentage of total Equity Capital	21.15
4. Vijay Jhunjhunwalla (HUF)
Number of Equity Shares	130,000
Percentage of total Equity Capital	25.00

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

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		5.200	3.950	0.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		5.908	0.603	0.150
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		11.108	4.553	0.250
LOAN FUNDS
1] Secured Loans		9.585	5.264	3.881
2] Unsecured Loans		13.400	4.500	5.450
TOTAL BORROWING		22.985	9.764	9.331
DEFERRED TAX LIABILITIES		0.039	0.031	0.024
TOTAL		34.132	14.348	9.605
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.664	1.808	1.946
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	25.973	7.709	6.534
	Sundry Debtors	23.136	15.452	5.684
	Cash & Bank Balances	0.065	0.060	0.049
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.774	0.668	0.292
Total Current Assets		49.948	23.889	12.559
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	16.741	10.634	4.233
	Other Current Liabilities	0.494	0.457	0.648
	Provisions	0.245	0.258	0.043
Total Current Liabilities		17.480	11.349	4.924
Net Current Assets		32.468	12.540	7.635
MISCELLANEOUS EXPENSES		0.000	0.000	0.024
TOTAL		34.132	14.348	9.605

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from Operations	52.775	45.367	14.221
		Other Income	0.591	0.688	0.000
		TOTAL (A)	53.366	46.055	14.221
Less	EXPENSES
		Purchases of Stock-in-trade	60.647	39.497	17.623
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(18.264)	(1.175)	(6.534)
		Employee Benefits Expenses	0.549	0.316	0.170
		Other Administrative Expenses	2.580	2.047	1.249
		Selling Expenses	4.906	3.396	0.770
		TOTAL (B)	50.418	44.081	13.278
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2.948	1.974	0.943
Less	FINANCIAL EXPENSES (D)		1.801	0.934	0.457
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.147	1.040	0.486
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.329	0.365	0.269
	PROFIT BEFORE TAX (E-F) (G)		0.818	0.675	0.217
Less	TAX (H)		0.253	0.222	0.067
	PROFIT AFTER TAX (G-H) (I)		0.565	0.453	0.150
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	0.150	0.000
	BALANCE CARRIED TO THE B/S		NA	0.603	0.150
	Earnings Per Share (Rs.)		1.08	1.14	15.00

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.06	0.98	1.05
Net Profit Margin (PBT/Sales)	(%)	1.55	1.49	1.53
Return on Total Assets (PBT/Total Assets}	(%)	1.58	2.63	1.50
Return on Investment (ROI) (PBT/Networth)		0.07	0.15	0.87
Debt Equity Ratio (Total Debt/Networth)		2.07	2.14	37.32
Current Ratio (Current Asset/Current Liability)		2.86	2.10	2.55

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)
Loans and advances from related parties	5.900	0.000
Other Loans and Advances	7.500	4.500
Total	13.400	4.500

NOTE:

The Registered office of the company has been shifted from 493/C/B, G. T. Road (South), Howrah Mills Company Limited Compound, Godown No.5, Howrah, West Bengal. India, to the present address w.e.f. 18.03.2009.

FUTURE PERFORMANCE

During the year, the company has earned a profit of Rs.0.818 Million as compared to previous year when it had earned a profit of Rs.0.675 Millions. The directors are hopeful that there will be an improvement in the profitability and earning potential of the company in near future.

FIXED ASSETS:

· Machinery

· Furniture and Fixtures

· Aquaguard Water Filter

· Electric Installation

· Fire Fighting Appliance

· Air Conditioner

· Cycle

· Office Equipment

· Computer

· Plastic Crafts

· LCD T.V.

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	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.