MIRA INFORM REPORT

Report Date :

05.02.2013

IDENTIFICATION DETAILS

Name :	GINZA INDUSTRIES LIMITED
Formerly Known As :	GINZA LACES LIMITED
Registered Office :	11 Clive Row, 4^th Floor, Room No.1A/A, Kolkata- 700001, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	24.07.1986
Com. Reg. No.:	21-40991
Capital Investment / Paid-up Capital :	Rs.88.831 Millions
CIN No.: [Company Identification No.]	U17297WB1986PTC040991
IEC No.:	0392070138
TAN No.: [Tax Deduction & Collection Account No.]	MUMG10867D
PAN No.: [Permanent Account No.]	AAACM4342C AABCG0675P
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturer, Trader, Exporter and Importer of Readymade Garments, Fabrics, Textiles etc.
No. of Employees :	300 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The latest financial are not available. As per previous year’s, the performance of the company is high. Financially appears to be good. Trade relations are reported to be fair. Business is active. Payments are unknown. The company can be considered for normal business dealings with some cautions. Note : Due to technical error in the government sites, we hereby provide you the report with available details and we would provide you with a on the same company as soon as we get the additional information.

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

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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Term Loan: BBB-
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation it carry moderate credit risk.
Date	January, 27

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 :	Ms. Anuja
Designation :	Senior Manager and Business Developer
Contact No.:	91-22-22052701
Date :	05.02.2013

LOCATIONS

Registered Office :	11, Clive Row, 4^th Floor, Room No. 1A/A, Kolkata – 700001, West Bengal, India
Tel. No.:	91-33-22429984/ 32588589
Fax No.:	91-33-22429984
E-Mail :	hariaexports@vsnl.com suniljain73@rediffmail.com saraf_pralay@rediffmail.com ginza@vsnl.com ginza.kolkatta@ginzalimited.com
Website :	http://www.ginzalimited.com
Location :	Owned
Corporate Office :	Kimatrai Building, 2^nd Floor, 3 77/79 Maharshi Karve Road, Marin Lines, Mumbai-400002, Maharashtra, India
Tel. No.:	91-22-22052701/02/03
Fax No.:	91-22-22052704
E-Mail :	ginza@vsnl.com
Area :	1300 sq. ft.
Location :	Owned
Factory 1 :	Udhna [Godown] Plot No. A-2, 15-17, Sardar Patel Road No. 2, Udhana Udyog Nagar, Udhana – Surat – 394210 (Gujarat), India
Tel. No.:	91-261-2867 6227 / 2867 4015
E-Mail :	surat@ginzalimited.com
Factory 2 :	Yarn and Tape Unit Plot No. 6, 8 & 9, Unity Industrial Complex, Chala Daman Road, Kachhigam, Daman 396 210, Uttar Pradesh, India
Tel. No.:	91-2638-252986
Factory 3 :	Knitted Fabric Unit Plot No. A – 2/11, Sachin Udyog Nagar, Sahakari Mandali Dandi Road, Vanzgoan, Sachin, Surat, Gujarat, India
Factory 4 :	Embroidery Unit Plot No. B 2, 29 and 30, Sachin Udyog Nagar, Sahakari Mandali Dandi Road, Vanzgoan, Sachin, Surat, Gujarat, India
Factory 5 :	Knitted Fabric Unit Plot No 87, 88, 89, SUR SEZ Sachin, G. I. D. C. Road No. 4, Taluka Choryasi, Surat, Gujarat, India
Factory 6 :	Process House Plot No. 362, GIDC, Road No. 3, Near Manilal Dyeing Mill, Sachin, GIDC Sachin, Surat – 394230, Gujarat, India
Factory 7 :	Torchon Lace Unit Genisis Ind. Complex, Phase III, Plot[s] No. 23/26, Village Kolgaon, Taluka : Palghar, Thane, Maharashtra, India
Factory 8:	Apparel Park – Garment Unit Plot No. 61, Road No. 4, Apparel Park, Vanz Road, Sachin, Surat, Gujarat, India
Factory 9 :	Workshop of garments : “In-Tense” 20/168 Unnat nagar No. 4, M. G. Road, Goregaon [West], Mumbai – 400062, Maharashtra, India

DIRECTORS

AS ON 26.09.2011

Name :	Mr. Ashok Kumar Sethia
Designation :	Managing Director
Address :	602, Building No. B 23, Wembley, Shastri Nagar, Lokhandwala, Andheri [West], Mumbai – 400053, Maharashtra, India
Date of Birth/Age :	17.11.1960
Qualification :	CA
Date of Appointment :	29.03.1991
DIN No. :	01283310

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U17297WB1986PLC040991	GINZA INDUSTRIES LTD.	Managing director	1/4/2011	24/07/1986	Active	NO
2	U17290MH2011PLC215134	GINZA LIFESTYLES LIMITED	Managing director	23/03/2011	23/03/2011	Active	NO
3	U17111WB1996PLC079636	TWISTEX INDIA LTD	Additional director	22/12/2011	22/12/2011	Active	NO

Name :	Mr. Laxmipat Banthia
Designation :	Whole Time Director
Address :	Flat No. 902, 9^th Floor Wing A, Reema Residency 607, 608, TPSIII CTS 17FP, Shimpoly Borivali (West), Mumbai – 400092, Maharashtra, India
Date of Birth/Age :	31.10.1974
Date of Appointment :	06.05.2002
DIN No. :	02464903

Name :	Mr. Arvind Kumar Sethia
Designation :	Director
Address :	A 80, Sant Tukaram Scoiety, BH Jivkor Nagar Society, Bhatar Road, Surat – 395006, Gujarat, Indai
Date of Birth/Age :	29.08.1958
Qualification:	B. Com.
Date of Appointment :	22.01.2002
DIN No.:	02502282

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U17297WB1986PLC040991	GINZA INDUSTRIES LIMITED	Director	22/01/2002	22/01/2002	Active	NO
2	U17290MH2011PLC215134	GINZA LIFESTYLES LIMITED	Director	23/03/2011	23/03/2011	Active	NO
3	U17111WB1996PLC079636	TWISTEX INDIA LIMITED	Additional director	22/12/2011	22/12/2011	Active	NO

Name :	Mr. Manoj Kumar Sethia
Designation :	Managing Director
Address :	SY 60,61,62, Plot No. 80, Sant Tukaram Society Near Nehar Ghod Dod Road, Surat - 395006, Gujarat , India
Date of Birth/Age :	04.09.1966
Qualification :	B. Com.
Date of Appointment :	29.08.1997
DIN No. :	02528442

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U17297WB1986PLC040991	GINZA INDUSTRIES LIMITED	Managing director	29/08/1997	29/08/1997	Active	NO
2	U17290MH2011PLC215134	GINZA LIFESTYLES LIMITED	Director	23/03/2011	23/03/2011	Active	NO
3	U17111WB1996PLC079636	TWISTEX INDIA LIMITED	Additional director	22/12/2011	22/12/2011	Active	NO

Name :	Mr. Mihir Mehta
Designation :	Additional director
Address :	Walkeshwar, Mumbai – 400006, Maharashtra, India
Date of Appointment :	27.07.2011
DIN No. :	00219614

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U17100MH1939NPL002965	SYNTHETIC AND ART SILK MILLS ASSOCIATION LIMITED	Director	3/3/1979	3/3/1979	Active	NO
2	U17100MH1937PTC002721	NEW MAHALAXMI SILK MILLS PRIVATE LIMITED	Director	3/3/1979	3/3/1979	Active	NO
3	U51900MH1965PLC013114	RAYEX (INDIA) LIMITED	Director	27/09/2005	27/09/2005	Active	NO
4	L17120MH1992PLC068861	DHANLAXMI FABRICS LIMITED	Director	23/09/2006	28/07/2006	Active	NO
5	U17100MH1956PLC009890	THE RAYON MILLS COMMERCIAL CORPORATION LIMITED	Director	30/09/2009	30/09/2009	Active	NO
6	U17297WB1986PLC040991	GINZA INDUSTRIES LIMITED	Director	2/9/2011	27/07/2011	Active	NO

Name :	Mr. Ajay Kumar Agarwal
Designation :	Whole-time director
Address :	Andheri, Mumbai, Maharashtra, India
Date of Appointment :	30.11.2010
DIN No. :	00278298

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	L17291MH1991PLC063752	PIONEER EMBROIDERIES LIMITED	Whole-time director	15/10/2003	15/10/2003	30/07/2007	Active	NO
2	U74899DL2000PTC104065	MAS EMBROIDERIES PRIVATE LIMITED	Director	31/03/2006	31/03/2006	20/07/2007	Active	NO
3	U17119GJ1986PTC009209	KIRAN INDUSTRIES PRIVATE LIMITED	Director	17/05/2006	17/05/2006	7/8/2007	Active	NO
4	U17291MH1994PLC076439	CRYSTAL LACE (INDIA) LIMITED	Director	7/11/2006	7/11/2006	4/8/2007	Active	NO
5	U70101MH2007PLC169361	PIONEER REALTY LIMITED	Director	29/03/2007	29/03/2007	13/08/2007	Active	NO
6	U18101MH1994PLC082837	GINI AND JONY LIMITED	Director	16/09/2008	1/9/2007	31/12/2008	Active	NO
7	U17297WB1986PLC040991	GINZA INDUSTRIES LIMITED	Whole-time director	30/11/2010	30/11/2010	-	Active	NO

Name :	Mr. Pratik Agarwal
Designation :	Additional director
Address :	Goregaon, Mumbai, Maharashtra, India
Date of Appointment :	24.06.2011
DIN No. :	03445304

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U17297WB1986PLC040991	GINZA INDUSTRIES LIMITED	Director	26/09/2011	24/06/2011	Active	NO

KEY EXECUTIVES

Name :	Ms Anuja
Designation :	Senior Manager and Business Developer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 26.09.2011

Names of Shareholders	No. of Shares
Ashok Kumar Sethia	1268200
Manoj Kumar Sethia	142000
Amolak Chand Sethia	87000
Kiran Devi Sethia	140000
Ritu Sethia	1130800
Vijay Shree Sethia	110000
Karuna Sethia	160000
Komal Sethia	47000
Piyush Sethia	5000
Sarita Baid	19000
Bimla Surana	55000
Raichand Surana (HUF)	55000
Mahesh Kumar	10000
Floral Exim Private Limited, India	2450000
Flourence Business Private Limited – India	400000
Pacific Marketing Private Limited – India	34000
Twistex India Private Limited – India	1872128
Sethia Housing And Leasing Private Limited – India	358828
Raj Diamonds Private Limited – India	91000

AS ON 26.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	58.79
Directors or relatives of directors	38.18
Other	3.03
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Trader, Exporter and Importer of Readymade Garments, Fabrics, Textiles etc.

Products :

Product Description	Item Code
Cotton Men’s Shirts	620520.02
Cotton Ladies Shirts	620462.11
Cotton Fabrics	520499.00
Raschel / Lycra Fabrics and Laces	60024330
Elastic Tapes	60024200
Nylon Crimped Yarn	5431

Brand Names :

‘Ginza’ , ‘In-Tense’ and ‘SOIE’

Exports :

Products :

Finished Goods

Countries :

· UAE

· USA

· Australia

· Europe

Imports :

Products :

Raw Materials

Countries :

China

Terms :

Selling :

L/C

Purchasing :

L/C

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

· Lovable Lingeric Limited

· Groversons Apparel Private Limited

· VIP Industries

No. of Employees :

300 [Approximately]

Bankers :

· Bank of India,

Mumbai Corporate Banking Branch, 70/80 M.G. Road, Fort, Mumbai - 400023, Maharashtra, India

Contact No.: 91-22-27564908

· Union Bank of India

Abdul Rehman Street Branch, Bhagat Mansion, 176/180, Andul Rehman Street, Mumbai- 400003, Maharashtra, India

Facilities:

Secured Loans	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	(A)426.078	494.518
Working capital loans banks secured	(B)481.034	564.029
Loans taken for vehicles secured	(C)55.880	6.203
Total	962.992	1064.750

Notes:

(A) Term Loan Facilities are secured by First Charge over the companies entire Fixed Assets (except specified assets) both present and future , on pari - passu basis and second charge on all current assets of company, both present and future. All the Secured loan are further secured by personal guarantees of Mr Ashok Sethia, Mr. Arvind Sethia, Mr Manoj Sethia and Mr. Laxmipat Banthia , Directors of Company.

(B) Working Capital Loan facilities are Secured by way of First Charge over the Companies entire stock of Raw Material , WIP, FG, Book Debts and other specified Current assets both present and future, on pari passu basis and Second charge on all Fixed and Movable Assets ( except Specified assets) of company , both present and future. All the Secured loan are further secured by personal guarantees of Mr. Ashok Sethia, Mr. Arvind Sethia, Mr. Manoj Sethia and Mr. Laxmipat Banthia , Directors of Company.

(C) Vehicles/ other Loan includes outstanding of ICICI Bank Limited Rs 40.000 Millions ( Previous year Rs 0.381 Million), Kotak Mahindra Bank Limited Rs 0.102 Million ( P.Y Rs. 0.646 Million), Sundaran Finance Limited Rs.7.349 Millions( P.Y Rs. 3.047 Millions), HDFC Bank Limited Rs. 0.051 Million ( P.Y Rs. 0.162 Million) and Axis Bank Limited Rs. 8.379 Million ( P.Y Rs. Nil) All the Secured loan are further secured by personal guarantees of Mr. Ashok Sethia, Mr. Arvind Sethia, Mr. Manoj Sethia and Mr. Laxmipat Banthia , Directors of Company.

Banking Relations :	--
Auditors :
Name :	Agarwal Sanganeria and Company Chartered Accountants
Address :	219, Bake House, Nagindas Master Road, Fort, Mumbai – 400023, Maharashtra, India
Tel No.:	91-22-22854664/ 22817305
Pan No.:	AADFA8676M
Related Parties :	Twistex India Limited
Subsidiaries :	Ginza Lifestyles Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8883106	Equity Shares	Rs.10/- each	Rs.88.831 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		88.831	88.831	88.831
2] Share Application Money		0.000	0.00	0.000
3] Reserves & Surplus		544.462	418.571	375.152
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		633.293	507.402	463.983
LOAN FUNDS
1] Secured Loans		962.992	1064.750	1136.948
2] Unsecured Loans		62.455	7.500	0.000
TOTAL BORROWING		1025.447	1072.250	1136.948
DEFERRED TAX LIABILITIES		84.836	57.453	81.816
TOTAL		1743.576	1637.105	1682.747
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1098.262	1004.488	1086.200
Capital work-in-progress		0.450	2.576	0.000
INVESTMENT		0.827	0.827	8.698
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	454.909	444.239	439.490
	Sundry Debtors	316.171	257.999	214.344
	Cash & Bank Balances	23.257	14.428	7.696
	Other Current Assets	0.000	0.000	27.038
	Loans & Advances	123.570	48.523	5.947
Total Current Assets		917.907	765.189	694.515
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	170.955	87.430	73.971
	Other Current Liabilities	81.519	34.041	23.075
	Provisions	25.555	22.823	22.098
Total Current Liabilities		278.029	144.294	119.144
Net Current Assets		639.878	620.895	575.371
MISCELLANEOUS EXPENSES		4.159	8.319	12.478
TOTAL		1743.576	1637.105	1682.747

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1907.928	1332.235	1278.592
		Other Income	1.699	5.351	4.347
		TOTAL	1909.627	1337.586	1282.939
Less	EXPENSES
		Consumption materials changes inventories	1109.905	748.399	857.758
		Manufacturing service costs	143.027	111.785	16.575
		Employee related expenses	178.031	142.467	(50.369)
		Administrative selling other expenses	73.344	73.781	109.482
		TOTAL	1504.307	1076.432	1175.871
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		405.320	261.154	107.068
Less	FINANCIAL EXPENSES		92.298	109.756	112.053
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		313.022	151.398	(4.985)
Less/ Add	DEPRECIATION/ AMORTISATION		121.604	121.188	92.329
Add/ Less	EXCEPTIONAL INCOME/ EXPENSE		(45.161)	(10.755)	24.519
Add/ Less	PRIOR PERIOD ITEMS		0.265	0.326	0.000
	PROFIT/ (LOSS) BEFORE TAX		146.522	19.781	(72.795)
Less	TAX		20.631	(23.639)	72.795
	PROFIT/ (LOSS) AFTER TAX		125.891	43.420	18.565
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		356.266	312.847	367.076
	BALANCE CARRIED TO THE B/S		482.157	356.266	312.847
	TOTAL EARNING		NA	134.665	102.667
	IMPORTS
		Raw Materials	NA	209.666	101.206
		Stores & Spares		1.790	3.609
		Capital Goods		9.270	8.629
	TOTAL IMPORTS		NA	220.726	113.444
	Earnings / (Loss) Per Share (Rs.)		14.17	4.68	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.59	3.25	1.45
Net Profit Margin (PBT/Sales)	(%)	7.68	1.48	(5.69)
Return on Total Assets (PBT/Total Assets}	(%)	7.27	1.12	(4.09)
Return on Investment (ROI) (PBT/Networth)		0.23	0.04	(0.16)
Debt Equity Ratio (Total Debt/Networth)		1.62	2.11	2.45
Current Ratio (Current Asset/Current Liability)		3.30	5.30	5.83

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	Yes
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	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	No
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	Yes

UNSECURED LOANS

Particulars	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Working capital loans others unsecured	62.455	7.500
Total	62.455	7.500

TRADE REFERENCE:

· Lovable Lingeric Limited

· Groversons Apparel Private Limited

· VIP Industries

NOTE:

Registered Office of the company has been shifted from 133, Canning 3^rd Floor, No. 17, Kolkata – 700001, West Bengal, India to the present address w. e. f. 16.03.2007.

BUSINESS OPERATIONS

The financial year 2010-11 was an important year for Companies around the world as the global economic downturn witnessed in 2008-09 and 2009-10 was one of the worst in recent generations. The overall performance of the Company for the financial year 2010-11 was satisfactory. The Company was able to grow itself at all fronts.

The Company’s gross income for the financial year ended March 31, 2011 increased to Rs.1909.600 Millions, from Rs. 1337.600 Millions in the previous year, registering a growth of over 43%. The operating profit (PBDITA) of the Company increased 50% to Rs. 390.800 Millions during the year, up from Rs 259.700 Millions in the previous year. Total Interest and Depreciation was at Rs 213.900 Millions as against Rs. 2.310 Millions in the previous year. The net profit for the year increased by 190% to Rs.125.900 Millions from Rs.43.400 Millions in the previous year. The long term Debt Equity ratio of the Company improved to 0.76 as on 31.3.2011 from 0.99 as on 31.3.2010 whereas Inventory to sales ratio improved to 87 days in FY2011 from 122 in FY.2010. The Operating Cash Flow position of the company also improved substantially during the year under review. The Company had generated net cash flow of Rs 391.900 Millions from operating activities during the year as against Rs 231.700 Millions generated during the previous financial year. The Company's Net worth as on March 31, 2011, stood at Rs.633.300 Millions as against Rs. 507.400 Millions last year.

The performance of Warp knitting division of the Company was extremely well during the year whereas the other segments have also made good growth. The exports of the Company also grew from Rs 134.700 Millions to Rs 148.900 Millions during the period.

FUTURE PLANS

The Company had undertaken expansion of its Warp Knitting Division, Embroidery Division, Elastic Tape Division, Apparel Division and Value Added Division during the year under review. The total capital cost of project was Rs340.200 Millions. The Company had availed Term loan of Rs 255.000 Millions from Union Bank of India, Bank of India and Allahabad Bank. The expansion of Warp Knitting Division, Embroidery Division, Elastic Tape Division and Value Added Division has already been completed and commercial production has started. The expansion of the Apparel Division is expected to be completed over in next six months.

The Company has also entered the organized retailing under the brand name SOIE to market Indo-Western Women’s apparel and Lingerie. The Company has already opened two Exclusive Outlets at Mega Mall, Oshiwara, Mumbai and Koram Mall, Thane. The Company plans to open 8 more outlets during the current year mainly in western region of the Country. The Company also market these products to MBO’s and have at present reach of 300 MBO’s across Country

FORM 8:

Corporate identity number of the company	U17297WB1986PTC040991
Name of the company	GINZA INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	11 Clive Row, 4^th Floor, Room No.1A/A, Kolkata- 700001, West Bengal, India
This form is for	Creation of charge
Type of charge	Book debts Movable property Current Assets of the company
Particular of charge holder	Union Bank of India – Abdul Rehman Street Branch, Bhagat Mansion, 176/180, Andul Rehman Street, Mumbai- 400003, Maharashtra, India E-Mail : cbsarstreet@unionbankofindia.com
Nature of description of the instrument creating or modifying the charge	Hypothecation agreement of goods and debts
Date of instrument Creating the charge	24.06.2010
Amount secured by the charge	Rs. 15.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest 15.25% per annum with monthly rests or at such other revised rate/s as may be prescribed by the Bank from time to time depending upon the changes in the PLR of the Bank or the directives of RBI. Terms of Repayment On demand Margin As per sanction terms. Extent and Operation of the charge To secure Adhoc Cash Credit (Hypothecation) facility of Rs. 15.000 millions granted by the Bank to the Company.
Particulars of the property charged	The Borrower hereby Hypothecated by way of First Pari - Passu Charge in favour of the Bank: 1.All Stock of Raw Materials, Semi Finished and Finished Goods of Embroidery, Laces, Ready Made Undergarments which expression shall include all Raw Materials, Semi Finished and Finished Goods, Consumable Stores and Spares and Movable Property of any kind now or at any time hereafter belonging to or at the disposal of the Borrower and which are now stored or being stored or which hereafter may from time to time be brought into or stored or be in or about the Borrower's premises or godown/s located at Sachin, Swat, Udhana, Daman, Palghar and at Surat and other places hired by the Borrower. 2.The Borrower's Book-Debts arising out of Sale Proceeds which shall include, Outstanding, Monies, Deposits, Receivables, Claims and Bills, Contracts, Securities, Investments which are now due and owing or which may at any time hereafter during the continuance of this security become due and owing. 3.First Pari Passu Charge on the Current Assets of the Company

FIXED ASSETS

· Land

· Factory Building

· Non- Factory Building

· Plant and Machinery

· Electrical Installation

· Air Conditioner

· Furniture and Fixture

· Computer

· Office Equipments

· Vehicles

· Residential Flats

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.52.97
UK Pound	1	Rs.83.17
Euro	1	Rs.72.21

INFORMATION DETAILS

Information Gathered by :	PLK
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	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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		36

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.