MIRA INFORM REPORT

Report Date :

10.01.2013

IDENTIFICATION DETAILS

Name :	KAPSONS FASHION PRIVATE LIMITED
Registered Office :	SCO 104 105, Sector 17 C, Chandigarh – 160017
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	01.04.2004
Com. Reg. No.:	53-026986
Capital Investment / Paid-up Capital :	Rs.8.000 Millions
CIN No.: [Company Identification No.]	U51310CH2004PTC026986
TAN No.: [Tax Deduction & Collection Account No.]	PTLK10912G
PAN No.: [Permanent Account No.]	AACCK3369D
Legal Form :	Private Limited Liability Company
Line of Business :	Dealer of Readymade Garments.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 300000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory record. There appears slight dip in profitability during the current year. However, general financial position of the company appears to be good. Performance capacity appears to be high. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered 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 – 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.

LOCATIONS

Registered Office/ Showroom :	SCO 104 105, Sector 17 C, Chandigarh – 160017, India
Tel. No.:	91-172-5000700
Mobile No.:	91-8284548105 (Mr Darpan Kapoor)
Fax No.:	Not Available
E-Mail :	darpan.kapoor@kapsons.com info@kapsons.com
Website :	www.kapsons.com
Corporate Office :	1206, New Delhi House, Barakhamba Road, Connaught Place, New Delhi – 110001, India
Tel. No.:	91 - 11 - 23722345 / 46 / 47 / 48
Fax No.:	91 - 11 - 23722349
E-Mail :	contact@smehelpline.com
Shop :	48 Mall Road, Amritsar 143001, Punjab, India
Tel. No.:	91-183-5030485
Head Office :	196, Industrial Area, Phase VIII, Mohali – 160061, Punjab, India

DIRECTORS

As on: 29.09.2012

Name :

Mr. Darpan Kapoor

Designation :

Managing director

Address :

# 508 Sector 8B, Chandigarh- 160008, India

Date of Birth :

19.06.1965

Date of Appointment :

01.01.2011

DIN No.:

00662898

PAN No.:

AFFPK3395G

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	U51310CH2004PTC026988	KAPSONS AGENCIES PRIVATE LIMITED	Director	01/01/2011	01/04/2004	-	Active	NO
2	U51310CH2004PTC026986	KAPSONS FASHION PRIVATE LIMITED	Managing director	01/01/2011	01/04/2004	-	Active	NO
3	U72200CH2006PTC030583	KAPSONS INFOSOFT PRIVATE LIMITED	Director	18/09/2006	18/09/2006	-	Active	NO
4	U51311CH2007PTC030746	KAPSONS WARDROBE PRIVATE LIMITED	Director	22/03/2007	22/03/2007	-	Active	NO
5	U63000CH2007PTC030818	KAPSONS LOGISTICS PRIVATE LIMITED	Director	18/05/2007	18/05/2007	-	Active	NO
6	U72900PB2009PTC033092	KAPSONS SOLUTIONS PRIVATE LIMITED	Director	11/08/2009	11/08/2009	-	Active	NO
7	U72900PB2012PTC036371	Krest Solutions Private Limited	Director	22/06/2012	22/06/2012	-	Active	NO
8	U52322PB2012PTC036384	KAPSONS RETAIL PRIVATE LIMITED	Director	26/06/2012	26/06/2012	-	Active	NO
9	U52399PB2012PTC036520	KAPSONS GLOBAL PRIVATE LIMITED	Director	06/08/2012	06/08/2012	-	Active	NO
10	U52322PB2012PTC036720	KAPSONS ONLINE PRIVATE LIMITED	Director	08/10/2012	08/10/2012	-	Active	NO

Name :

Mr. Vipin Kapoor

Designation :

Director

Address :

# 508 Sector 8B, Chandigarh, 160008, India

Date of Birth :

27.10.1962

Date of Appointment :

01.01.2011

DIN No.:

00662934

PAN No.:

ABAPK1448B

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	U51310CH2004PTC026986	KAPSONS FASHION PRIVATE LIMITED	Director	01/01/2011	01/04/2004	-	Active	NO
2	U51310CH2004PTC026988	KAPSONS AGENCIES PRIVATE LIMITED	Managing director	01/01/2011	01/04/2004	-	Active	NO
3	U72200CH2006PTC030583	KAPSONS INFOSOFT PRIVATE LIMITED	Director	18/09/2006	18/09/2006	-	Active	NO
4	U51311CH2007PTC030746	KAPSONS WARDROBE PRIVATE LIMITED	Director	22/03/2007	22/03/2007	-	Active	NO
5	U63000CH2007PTC030818	KAPSONS LOGISTICS PRIVATE LIMITED	Director	18/05/2007	18/05/2007	-	Active	NO
6	U72900PB2009PTC033092	KAPSONS SOLUTIONS PRIVATE LIMITED	Director	11/08/2009	11/08/2009	-	Active	NO
7	U72900PB2012PTC036371	Krest Solutions Private Limited	Director	22/06/2012	22/06/2012	-	Active	NO
8	U52322PB2012PTC036384	KAPSONS RETAIL PRIVATE LIMITED	Director	26/06/2012	26/06/2012	-	Active	NO
9	U52399PB2012PTC036520	KAPSONS GLOBAL PRIVATE LIMITED	Director	06/08/2012	06/08/2012	-	Active	NO
10	U52322PB2012PTC036720	KAPSONS ONLINE PRIVATE LIMITED	Director	08/10/2012	08/10/2012	-	Active	NO

Name :

Ms. Nishi Kapoor

Designation :

Director

Address :

# 508 Sector 8B, Chandigarh, 160008, India

Date of Birth :

26.10.1967

Date of Appointment :

01.04.2004

DIN No.:

02260270

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	U51310CH2004PTC026986	KAPSONS FASHION PRIVATE LIMITED	Director	01/04/2004	01/04/2004	-	Active	NO
2	U52322PB2012PTC036720	KAPSONS ONLINE PRIVATE LIMITED	Director	08/10/2012	08/10/2012	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Darpan Kapoor	39400
Vipin Kapoor	39400
Nishi Kapoor	1200
Total	80000

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Dealer of Readymade Garments.
Products :	· Belts and Overcoats · Children’s Wear · Jackets · Men’s Clothing · Shirts · Suits · Sweaters · Tie · Trousers · Womens Clothing

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· ICICI Bank Limited, Landmark Race Cource Circle, Alkapuri, Baroda - 390015, Gujarat, India

· Hongkong And Shanghai Banking Corporation, Sec 9, Chandigarh, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long-term Borrowing
Term loans from banks	159.950	86.129
Other loans and advances	4.318	5.328
Short-term Borrowing
Loans repayable on demand from banks	21.519	26.116
Total	185.787	117.573
Unsecured Loan	As on 31.03.2012	As on 31.03.2011
Long-term Borrowing
Loans and advances from related Parties	123.212	10.237
Loans and advances from others	22.202	7.095
Short-term Borrowing
Other loans and advances	1.858	0.000
Total	147.272	17.332

Banking Relations :	--
Auditors :
Name :	Rajiv Sat Bhushan and Associates Chartered Accountants
Address :	SCO 1-2-3 Level Iv Sector 17-B Chandigarh, India
PAN.:	ABUPG3667Q

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
80000	Equity Shares	Rs.100/- each	Rs.8.000 Millions

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		8.000	8.000	8.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		69.493	55.868	29.732
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		77.493	63.868	37.732
LOAN FUNDS
1] Secured Loans		185.787	117.573	113.469
2] Unsecured Loans		147.272	17.332	16.631
TOTAL BORROWING		333.059	134.905	130.100
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		410.552	198.773	167.832
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		261.055	154.262	117.288
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	1.101
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	460.802	339.459	288.954
	Sundry Debtors	25.988	19.653	11.888
	Cash & Bank Balances	11.888	5.109	3.256
	Other Current Assets	4.004	2.292	0.889
	Loans & Advances	71.141	59.027	32.260
Total Current Assets		573.823	425.540	337.247
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	381.166	308.198	256.478
	Other Current Liabilities	32.265	52.036	0.000
	Provisions	10.895	20.795	31.326
Total Current Liabilities		424.326	381.029	287.804
Net Current Assets		149.497	44.511	49.443
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		410.552	198.773	167.832

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1540.485	1220.076	732.487
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		Office Expenses	NA	NA	NA
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX		23.695	41.938	25.628
Less	TAX		8.676	14.403	8.711
	PROFIT AFTER TAX		15.019	27.535	16.917
	Earnings Per Share (Rs.)		187.74	NA	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	NA	NA
Net Profit Margin (PBT/Sales)	(%)	NA	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	2.84	7.23	5.64
Return on Investment (ROI) (PBT/Networth)		0.31	0.66	0.68
Debt Equity Ratio (Total Liability/Networth)		9.77	8.08	11.08
Current Ratio (Current Asset/Current Liability)		1.35	1.12	1.17

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	No
9]	Name of person contacted	No
10]	Designation of contact person	No
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	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 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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

Operations

Sales for the year, was Rs. 1540.485 Millions as against Rs 1220.076 Millions during the previous period Profit before tax was Rs 23.695 Millions and Profit after tax was Rs 15.019 Millions as against Rs 41.938 Millions and Rs 27.535 Millions during the previous period respectively the directors are hopeful about the better results of the Company in the next financial year

Bankers Charges Report as per Registry

Corporate identity number of the company	U51310CH2004PTC026986
Name of the company	KAPSONS FASHION PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	SCO 104 105, Sector 17 C, Chandigarh – 160017, India darpan.kapoor@kapsons.com
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge) Others (current assets and fixed assets)
Particular of charge holder	ICICI Bank Limited, Landmark Race Cource Circle, Alkapuri, Baroda - 390015, Gujarat, India poonam.gupta@icicibank.com
Nature of instrument creating charge	Deed of hypothecation
Date of instrument Creating the charge	07.02.2012
Amount secured by the charge	Rs.110.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest sum of I Base and spread per annum Terms of Repayment Repayable in 60 equal monthly installments beginning at the end very first month of disbursement from February 29, 2012 such that the last installment is not after January 31, 2017. If disbursement of Rs. 110.000 Million gets distributed in two or more than two parts. Even though, the same repayment schedule will follow with the pro-rata basis subject to not raising final repayment date a beyond January 31, 2017. Margin 31.98% of the project cost Extent and Operation of the charge 1. First charge on all the fixed assets of the project to be financed by ICICI Bank term loan. 2. Second charge by way of hypothecation on entire stocks of raw materials, semi finished and finished goods, consumable stores and spares and such other moveable’s including book-debts, bills whether documentary or clean, outstanding monies, receivables, both present and future, ranking pari pasu with other participating banks. Others the above is to secure the term loan of Rs. 110.000 Million
Short particulars of the property or asset(s) charged (including complete address and location of the property)	· First charge on all the fixed assets of the project to be financed by ICICI Bank term loan. · Second charge by way of hypothecation on entire stocks of raw materials, semi finished and finished goods, consumable stores and spares and such other moveable’s including book-debts, bills whether · Documentary or clean, outstanding monies, receivables, both present and future, in a form and manner satisfactory to the Bank, ranking pari pasu with other participating banks.

FIXED ASSETS:

· Furniture and fixtures

· Motor vehicles

· Computer equipments

· Owned and leased assets

· Finished goods

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.54.96
UK Pound	1	Rs.88.23
Euro	1	Rs.71.92

INFORMATION DETAILS

Report Prepared by :

RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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
TOTAL		46

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.