MIRA INFORM REPORT

Report Date :

28.05.2013

IDENTIFICATION DETAILS

Name :	ZONAC KNITTING MACHINES PRIVATE LIMITED
Registered Office :	C-64, 1^st Floor, Ashok Vihar, Phase – I, New Delhi – 110052
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	10.03.1988
Com. Reg. No.:	55-030908
Capital Investment / Paid-up Capital :	Rs. 19.406 Millions
CIN No.: [Company Identification No.]	U74899DL1988PTC030908
TAN No.: [Tax Deduction & Collection Account No.]	DELZ00390F
PAN No.: [Permanent Account No.]	AAACZ0038N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of Knitted Garments, Including Tights, Gloves and Hankies.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 382800
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. The company has shown better improvement in its operations during 2012. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal 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

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 :	C-64, 1^st Floor, Ashok Vihar, Phase – I, New Delhi – 110052, India
Tel. No.:	91-11-27691195
Fax No.:	91-11-27691188
E-Mail :	bonjour@bonjourgroup.net zonac@bonjourgroup.com webcare@bonjourgroup.net
Website :	http://www.socks-India.com
Branch Office:	Plot No. D-1, Industrial Area, Site B, Surajpur Greater Noida – 201307, Uttar Pradesh, India
Tel. No.:	91-120-2561115/2561116
Fax No.:	91-120-2561114
Show Room :	Shop No. C – 20, Dominos, Sec 18, Noida, Uttar Pradesh, India
Tel. No.:	91-120-4249167

DIRECTORS

As on 29.09.2012

Name :

Mr. Ajay Kumar Jain

Designation :

Director

Address :

C-64, 1^st Floor, Ashok Vihar, Phase – I, New Delhi – 110052, India

Date of Birth/Age :

24.10.1966

Date of Appointment :

28.02.1994

DIN No.:

00098243

Name :

Mr. Raj Kumar Jain

Designation :

Managing Director

Address :

C-64, 1^st Floor, Ashok Vihar, Phase – I, New Delhi – 110052, India

Date of Birth/Age :

28.12.1964

Date of Appointment :

10.03.1988

DIN No.:

00098271

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	U17111DL2005PTC132519	SOGO FASHIONS PRIVATE LIMITED	Director	31-01-05	31-01-05	-	Active	NO
2	U74899DL1988PTC030908	ZONAC KNITTING MACHINES PVT LTD	Managing director	10-03-07	10-03-07	-	Active	NO
3	U18204DL2007PTC164229	MALVIKA GARMENTS EXIM PRIVATE LIMITED	Director	31-05-07	31-05-07	01-03-11	Active	NO
4	U72300DL2007PTC164217	N.K.INFOLINE PRIVATE LIMITED	Director	31-05-07	31-05-07	-	Strike off	NO

Name :

Mr. Nihal Chand Jain

Designation :

Director

Address :

C-64, 1^st Floor, Ashok Vihar, Phase – I, New Delhi – 110052, India

Date of Birth/Age :

19.07.1942

Date of Appointment :

28.02.1994

DIN No.:

00098296

Name :

Mrs. Kusum lata Jain

Designation :

Director

Address :

C-64, 1^st Floor, Ashok Vihar, Phase – I, New Delhi – 110052, India

Date of Birth/Age :

22.02.1948

Date of Appointment :

10.03.1988

DIN No.:

00098321

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Directors
Raj Kumar Jain	498900
Raj Kumar Jain (HUF)	300000
Sushma Jain	75000
Nihal Chand Jain and Sons (HUF)	120000
Ajay Kumar Jain	220000
Ajay Kumar Jain (HUF)	50000
Sweta Jain	20000
Sanjay Jain	470000
Minority Shareholders (Friends and Relatives)
Rakesh Jain	45000
Manish Jain	60000
Tirupati Industrial Waste Management Private Limited	2500
Sushil Kumar Lalwani	2500
R H Design India Private Limited	2500
Nishad Consultants Private Limited	5000
Rajmata Finlease Private Limited	5000
Assure Financial Services Private Limited	2500
Venktesh Gupta	2500
Manju Gupta	2500
V K Gupta	56750
Total	1940650

As on 31.12.2012

Name of Allottee	No. of Shares
Nihal Chand Jain	2000
Kusum lata Jain	2000
Sanjay Jain	6000
Sanjay Jain (HUF)	14000
Shalini Jain	26000
Total	50000

As on 29.09.2012

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 :

Manufacturing of Knitted Garments, Including Tights, Gloves and Hankies.

Products :

PRODUCT DESCRIPTION	ITEM CODE
Textiles Handloom Power Looms	0120
Clothing Accessories	6217

Brand Names :

• “BONJOUR INTERNATIONAL”
• “BONGIO”

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Canara Bank, Shakti Nagar, New Delhi-110007, India
• ICICI Bank Limited
• ING Vysya Bank Limited
• HDFC Bank Limited
• SBI, Nhava Sheva
• Nainital Bank Limited
• Bank of India

Facilities :

Secured Loan	As on 31.03.2012 (Rs. In Millions)	As on 31.03.2011 (Rs. In Millions)
Term Loan from Banks/FlS.
Canara Bank T/Loan SI-117077305732	12.009	18.799
Canara Bank T/Loan SI-117077305790	1.179	1.884
Canara Bank T/Loan SI-117077305791	6.106	9.017
Canara Bank T/Loan SI-117077305786	0.593	1.093
Secured Loans from ICICI Bank Limited :
Housing Loans- Secured against Leased land	11.044	11.464
Vehicles Loans
Canara Bank (sec. by vehicle loan #1170603005878)	0.000	0.117
Canara Bank (sec. by vehicle loan #1170603005867)	0.062	0.117
ING Vysya Bank Limited (Auto Loan # AL5300357892)	0.144	0.430
ING Vysya Bank Limited (Auto Loan # AL5300357903)	0.144	0.430
HDFC Bank (sec. by vehicle loan # 20205463)	0.777	0.000
Loans Repayable on Demand from Banks/ FIS.
Cash Credit Facilities from Canara Bank	76.277	71.277
Total	108.335	114.628

Banking Relations :	--
Auditors :
Name :	Vinay Jain and Associates Chartered Accountants
Address :	18/12, Wea Arya Samah Road, Karol Bagh, New Delhi-110005, India
Tel. No.:	91-11-28753909 [Office] 91-11-26854213 [Residential]
Mobile No.:	91-9811228611
Fax No.:	91-11-28756275
E-Mail :	vjainca@rediffmai.com
Website:	http://www.vjainca.com
Pan No.:	AADFV4563C

CAPITAL STRUCTURE

After 31.12.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1990650	Equity Shares	Rs.10/- each	Rs. 19.906 Millions

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1940650	Equity Shares	Rs.10/- each	Rs. 19.406 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		19.406	18.439	18.439
2] Share Application Money Pending Allotment		0.000	0.400	0.000
3] Reserves & Surplus		76.300	54.709	37.157
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		95.706	73.548	55.596
LOAN FUNDS
1] Secured Loans		108.335	114.628	95.962
2] Unsecured Loans		38.503	23.767	17.525
TOTAL BORROWING		146.838	138.395	113.487
DEFERRED TAX LIABILITIES		3.965	3.178	4.215
TOTAL		246.509	215.121	173.298
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		98.276	102.480	81.932
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		13.000	13.000	13.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	67.392	101.269	57.294
	Sundry Debtors	80.988	40.675	56.232
	Cash & Bank Balances	9.426	6.577	8.511
	Other Current Assets	2.552	7.616	4.997
	Loans & Advances	24.805	4.105	0.000
Total Current Assets		185.163	160.242	127.034
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	10.816	30.065	41.684
	Other Current Liabilities	29.506	24.736	5.151
	Provisions	9.608	5.800	1.833
Total Current Liabilities		49.930	60.601	48.668
Net Current Assets		135.233	99.641	78.366
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		246.509	215.121	173.298

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income		343.629	303.736
		Other Income		0.635	0.628
		TOTAL (A)	452.374	344.264	304.364
Less	EXPENSES
		Raw Material Consumed		283.149	225.699
		Manufacturing Expenses		21.243	19.924
		Employees Cost		18.703	13.297
		Administrative Expenses		2.811	2.875
		Selling and Distribution Expenses		30.949	23.614
		Increase / Decrease in Stocks		(48.246)	(11.598)
		Extra Ordinary Items		(0.083)	(0.182)
		TOTAL (B)	408.473	308.526	273.629
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		43.901	35.738	30.735
Less	FINANCIAL EXPENSES (D)		15.547	12.107	13.749
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		28.354	23.631	16.986
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.617	10.945	8.835
	PROFIT BEFORE TAX (E-F) (G)		18.737	12.686	8.151
Less	TAX (H)		7.928	2.734	2.575
	PROFIT AFTER TAX (G-H) (I)		10.809	9.952	5.575
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		30.908	20.956	15.381
	BALANCE CARRIED TO THE B/S		41.717	30.908	20.956
	IMPORTS
		Raw Materials	2.811	0.712	NA
	TOTAL IMPORTS		2.811	3.523	NA
	Earnings Per Share (Rs.)		5.57	5.13	2.87

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.39	2.89	1.83
Net Profit Margin (PBT/Sales)	(%)	NA	3.69	2.68
Return on Total Assets (PBT/Total Assets}	(%)	6.61	4.83	3.90
Return on Investment (ROI) (PBT/Networth)		0.19	0.17	0.15
Debt Equity Ratio (Total Debt /Networth)		1.53	1.88	2.04
Current Ratio (Current Asset/Current Liability)		3.71	2.64	2.61

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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOAN:

Particulars	As on 31.03.2012 (Rs. In Millions)	As on 31.03.2011 (Rs. In Millions)
From Others
Directors and Family Members/Relatives	5.004	8.673
Body Corporate/ Firms	33.499	15.094
Total	38.503	23.767

OUTLOOK:

The fiscal year 2011-12 witnessed slowdown of economic activities particularly industrial output. Inflation also remained at elevated level throughout the fiscal year. Private investment has declined in its pace of growch considerably affecting the growth rate of the economy. Higher spending on subsidies on account of oil and fertilisers widened the fiscal deficit of the centre more than the budget estimates, The RBI has projected a GDP growth of 7.2% for 2012-13 whereas the Economic Survey 2011-12 projected a GDP growth of 7.5%, AH these projections point to continuation or improvement over the pace of economic activity of the previous year. Combined with a lower inflation rate, the prognosis for the new financial year is one of improved performance on growth front. Stable external conditions and a favourable monsoon would be critical to the realisation of these projections, the growth prospects for agriculture in 2012-13 will hinge on the performance of monsoon. Hosiery and garment, textile markets are expected to grow, however uncertain global economic environment, inflation and adverse impact of rupee depreciation and competitive intensity continue to pose challenges for the future. While the near term conditions pose a challenge for the economy, the medium to longer term trends based on rising incomes, aspirations, undisputed increase in the population and consumption levels, etc. are positive and an opportunity for the Company.

FINANCIAL PERFORMANCE:

The Company posted yet another year of stellar performance with impressive top line growth and high quality earnings reflecting the robustness of its corporate strategy of creating multiple drivers of growth. There has been growth of 31 40% (Prev. year 13.36%) in the sales turnover of the company and profit before taxation grew by 48.67% and net profit after taxation grew by 8.61% only, which is just due to heavy taxation outflow, which is jumped to 187.68% as compared to previous year 2010-11. This performance is particularly noteworthy when viewed against the backdrop of the extremely challenging business context in which this was achieved, namely steep increase / mandatorily imposing of the excise duty on the branded garments & textile made-ups, coupled with arbitrary increase in VAT, brand building and incubation costs of business up gradation, revamping exercises and the impact of the significant investments made augmenting distribution, impact of significant investments made in augmenting distribution infrastructure related costs. Which will now reap the benefits in forthcoming years and economies of the scales.

BANKER CHARGES REPORT AS PER REGISTRY:

Corporate identity number of the company	U74899DL1988PTC030908
Name of the company	Zonac Knitting Machines Private Limited
Address of the registered office or of the principal place of business in India of the company	C-64, 1^st Floor, Ashok Vihar, Phase – I, New Delhi – 110052, India E-Mail: ZONAC@BONJOURGROUP.NET
This form is for	Creation of Charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	Canara Bank, Shakti Nagar, New Delhi-110007, India E-Mail: ca_rcg@yahoo.co.in
Nature of instrument creating charge	Canmobile Agreement dated 28.01.2013
Date of instrument Creating the charge	28.01.2013
Amount secured by the charge	Rs. 0.590 Million
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest: @ 11.75% p.a at monthly rest or at such rate(s) as may be specified by the Bank from time to time with an overdue int. of 2% p.a over and above the int. rate charged in the account, in case of default Term of Payment: Repayable in 60 equated monthly installments of Rs. 12,902/- each commencing from 28.02.2013 till the entire loan with interest and other charges is repaid in full. Margin: 10% Extent and operation of the charge: 100% Others: To secure all amounts payable under Vehicle Loan of Rs. 0.590 million granted to the Company together with all interests, costs, charges, expenses etc.
Short particulars of the property charged (Including location of the property)	Hypothecation of the following vehicle purchased or to be purchased out of the Term Loan granted by the Bank: Maruti Swift Dzire LDi

FIXED ASSETES:

• Land
• Plant and Machinery
• Electric Installations
• Furniture and Fixtures
• Lift
• Car
• Air Conditioners
• Cycle
• Fax Machine
• Office Equipment
• Pager
• Computer

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 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] 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.55.62
UK Pound	1	Rs.84.18
Euro	1	Rs.71.96

INFORMATION DETAILS

Report Prepared by :

ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.