MIRA INFORM REPORT

Report Date :

17.10.2013

IDENTIFICATION DETAILS

Name :	SPYKAR LIFESTYLES PRIVATE LIMITED (w.e.f. 09.02.2007)
Formerly Known As :	SPAN APPARELS PRIVATE LIMITED
Registered Office :	271 Business Park, 1st Floor, Model Industrial Colony, Visweshwar Nagar Road, Goregoan(East), Mumbai – 400063, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	06.05.1998
Com. Reg. No.:	11-114797
Capital Investment / Paid-up Capital :	Rs.180.675 Millions
CIN No.: [Company Identification No.]	U18101mh1998ptc114797
TAN No.: [Tax Deduction & Collection Account No.]	MUMS37183G
PAN No.: [Permanent Account No.]	AAECS3455
Legal Form :	Private Limited Liability Company
Line of Business :	Selling readymade garments apparel through a network of exclusive business outlets, multi-brand outlets and large retails chains.
No. of Employees :	40 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 550000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Exist
Comments :	Subject is a well established company having a satisfactory track record. The profitability position of the company is under severe pressure during 2012. The ratings also take into consideration the established brand name and the infusion of funds by the management with the help of which the company has been successful in wiping off its partial accumulated losses during the year under review. However, trade relations are fair. Business is active. Payment terms are reported as 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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 (GENERAL DETAILS)

Name :	Mr. Bhavik Maakwana
Designation :	Accounts Department
Contact No.:	91-22-42175300
Date :	15.10.2013

LOCATIONS

Registered Office / Corporate Office:	271 Business Park, 1st Floor, Model Industrial Colony, Visweshwar Nagar Road, Goregoan(East), Mumbai – 400063, Maharashtra
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	ajit.shinde@spykar.com
Location :	Owned

DIRECTORS

As on 08.06.2012

Name :

Mr. Sanjay Navinchandra Vakharia

Designation :

Director

Address :

259/7, Trevedi Building, Road No. 31/A, Scheme 6, Sion East, Mumbai – 400022, Maharashtra, India

Date of Birth/Age :

09.08.1977

Date of Appointment :

27.03.2006

PAN No.:

AAAPV5808K

DIN No.:

00280873

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	U18101MH1998PTC114797	SPYKAR LIFESTYLES PRIVATE LIMITED	Director	27/03/2006	27/03/2006	-	Active	NO
2	U17291MH2007PTC170552	SPAN PACIFIC LIFESTYLES PRIVATE LIMITED	Whole-time director	03/05/2007	03/05/2007	08/07/2007	Active	YES

Name :

Mr. Prasad Mahadeo Pabrekar

Designation :

Director

Address :

D/401 Nandavan CHSL Off S V Road, Andheri (west), Mumbai – 400 058, Maharashtra

Date of Birth/Age :

03.09.1962

Date of Appointment :

16.05.1998

PAN No.:

AAEPP0878P

DIN No.:

286194

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	U18101MH1998PTC114797	SPYKAR LIFESTYLES PRIVATE LIMITED	Director	16/05/1998	16/05/1998	-	Active	NO
2	U18101MH2006PTC165745	INDACO JEANS PRIVATE LIMITED	Director	23/11/2006	23/11/2006	24/02/2009	Active	NO
3	U17291MH2007PTC170552	SPAN PACIFIC LIFESTYLES PRIVATE LIMITED	Whole-time director	03/05/2007	03/05/2007	10/05/2007	Active	YES
4	U18202MH2009PTC192034	OYO LIFESTYLE PRIVATE LIMITED	Director	24/04/2009	24/04/2009	-	Active	NO

Name :

Mr. Harikrishnan Velayutham Selvakumar

Designation :

Nominee director

Address :

T-608 Purva Park Apartment No. 53, MSO Colony, Cox Town Building – 5, Bangalore – 560005, Karnataka, India

Date of Birth/Age :

20.07.1974

Date of Appointment :

12.08.2011

DIN No.:

02139866

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	U18101MH1998PTC114797	SPYKAR LIFESTYLES PRIVATE LIMITED	Nominee director	12/08/2011	03/04/2010	-	Active	NO
2	U72300TN1996PTC036958	TECHNOLOGY FRONTIERS (INDIA) PRIVATE LIMITED	Nominee director	12/01/2011	14/07/2010	-	Active	NO
3	U11200DL2005PTC178724	NAFTO GAZ INDIA PRIVATE LIMITED	Director	28/09/2010	18/09/2010	31/10/2011	Active	NO
4	U45201AP2001PLC036617	AMR INDIA LIMITED	Nominee director	12/01/2011	12/01/2011	19/02/2013	Active	NO
5	U45204AP2006PTC050559	AMR MALIND INFRA PRIVATE LIMITED	Nominee director	29/09/2011	11/03/2011	-	Active	NO

Name :

Mr. Gautam K Bakhshi

Designation :

Nominee director

Address :

1701 Sun Palazzo, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra, India

Date of Birth/Age :

16.12.1957

Date of Appointment :

12.08.2011

DIN No.:

01370641

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	U74900MH2006PTC162712	SABRE PARTNERS INDIA ADVISORS PRIVATE LIMITED	Director	12/02/2007	12/02/2007	15/04/2011	Active	NO
2	U67190MH2008PTC180341	SABRE CAPITAL INDIA INVESTMENT ADVISORS PRIVATE LIMITED	Additional director	02/05/2008	02/05/2008	15/04/2011	Strike off	NO
3	U85110PN2007PTC131051	OYSTER AND PEARL HOSPITALS PRIVATE LIMITED	Additional director	12/12/2009	12/12/2009	01/12/2010	Active	NO
4	U67190DL2005PTC141426	AVIGO CAPITAL PARTNERS PRIVATE LIMITED	Director	06/07/2011	15/06/2011	01/11/2012	Active	NO
5	U18101MH1998PTC114797	SPYKAR LIFESTYLES PRIVATE LIMITED	Nominee director	12/08/2011	06/07/2011	19/07/2013	Active	NO
6	U74210DL2005PLC136976	TECPRO ENGINEERS LIMITED	Director	12/08/2011	12/07/2011	06/05/2013	Active	NO
7	U52334KA1994PLC015169	RINAC INDIA LIMITED	Nominee director	28/09/2012	28/09/2011	18/12/2012	Active	NO
8	U74140MH2010PTC244796	ASHWATTHA ADVISORS PRIVATE LIMITED	Director	28/09/2012	23/03/2012	-	Active	NO
9	U85191MH2012NPL236277	TNS INDIA FOUNDATION	Director	27/09/2012	27/09/2012	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Bhavik Maakwana
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 08.06.2012

Names of Shareholders (Equity Shares)	No. of Shares	% No. of Holding
A) Promoter Shareholding
1) Prasad M Pabrekar	3225445	26.51
2) Harshada P Pabrekar	1481505	12.18
B) Non Promoters / Others Shareholding
1) Private Corporate Bodies	372300	3.06
C) Foreign
a) Avigo Ventures Investment Limited	3350700	27.54
b) Metmin Investment Holding Limited	1216667	10.00
D) Others	2520050	20.71
Total	12166667	100.00

Names of Shareholders (Preference Shares)	No. of Shares	% No. of Holding
Metmin Investment Holding Limited	5900833	100.00
Total	5900833	100.00

Equity Share Break up (Percentage of Total Equity)

As on 08.06.2012

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	37.54
Bodies corporate	7.93
Directors or relatives of Directors	54.53
Total	100.00

BUSINESS DETAILS

Line of Business :

Selling readymade garments apparel through a network of exclusive business outlets, multi-brand outlets and large retails chains

Products :

Product Description	Item Code (ITC Code No.)
Ready Made Garments	61019090

Exports :

Products :

Finished Goods

Countries :

Abu Dhabi

Terms :

Selling :

L/C and Credit

Purchasing :

L/C and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

40 (Approximately)

Bankers :

· Janakalyan Sahakari Bank Limited, 140, Vivek Darshan, Sindhi Society, Opp Bhakti Bhavan, Chembur, Mumbai – 400 071, Maharashtra

· Union Bank of India, Lower Parel Branch, Yeshwant Bhavan, Pandurang Budhkar Marg, Lower Parel, Mumbai – 400 013, Maharashtra, India

· State Bank of India, Industrial finance Branch, Lekhraj Bhavan, Saki Vihar Road, Sakinaka, Andheri (East), Mumbai 400072, Maharashtra, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long-term Borrowings
Rupee term loans from banks (Term Loans are secured on a pari passu basis by Trade Receivables and Inventories of the Company)	140.612	171.727
Long-term maturities of finance lease obligations	0.271	0.000
Short-term borrowings
Loans repayable on demand (Loans secured by first charge on Current Assets and second charge on the Fixed Assets of the Company on pari passu basis.)	331.702	696.287
Total	472.585	868.014

Banking Relations :
Auditors :
Name :	D S K and Associates Chartered Accountant
Address :	19 Andheri University Industrial Premises, 57, J P Road, Andheri (West), Mumbai 400058, Maharashtra, India
Tel. No.:	91-22-26707188/26707455
Fax No.:	91-22-26289672
PAN N Income-tax PAN of auditor or auditor's firm :	AACFD5962C
Associates/Subsidiaries :	· Om Creations · Span Processor

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
22500000	Equity Shares	Rs.10/- each	Rs. 225.000 Millions
7500000	Preference Shares	Rs.10/- each	Rs. 75.000 Millions
	Total		Rs. 300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12166667	Equity Shares	Rs.10/- each	Rs. 121.667 Millions
5900833	Preference Shares	Rs.10/- each	Rs. 59.008 Millions
	Total		Rs. 180.675 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	180.675	109.500
(b) Reserves & Surplus	(43.427)	(103.276)
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	137.248	6.224
(3) Non-Current Liabilities
(a) long-term borrowings	140.883	171.727
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	150.867	159.291
(d) long-term provisions	3.817	2.664
Total Non-current Liabilities (3)	295.567	333.682
(4) Current Liabilities
(a) Short term borrowings	389.169	705.587
(b) Trade payables	412.310	404.682
(c) Other current liabilities	249.002	356.407
(d) Short-term provisions	6.197	7.932
Total Current Liabilities (4)	1056.678	1474.608
TOTAL	1489.493	1854.514
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	207.165	586.528
(ii) Intangible Assets	0.682	1.453
(iii) Capital work-in-progress	0.391	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	3.960	3.960
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	218.832	204.338
(e) Other Non-current assets	24.381	35.420
Total Non-Current Assets	455.411	831.699
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	170.053	198.306
(c) Trade receivables	852.308	674.934
(d) Cash and cash equivalents	7.485	8.533
(e) Short-term loans and advances	0.000	0.000
(f) Other current assets	4.236	141.042
Total Current Assets	1034.082	1022.815
TOTAL	1489.493	1854.514

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		109.500
2] Share Application Money		0.000
3] Reserves & Surplus		54.051
4] (Accumulated Losses)		0.000
NETWORTH		163.551
LOAN FUNDS
1] Secured Loans		964.424
2] Unsecured Loans		0.000
TOTAL BORROWING		964.424
DEFERRED TAX LIABILITIES		0.000
TOTAL		1127.975
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		606.162
Capital work-in-progress		0.000
INVESTMENT		4.228
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	242.300
	Sundry Debtors	844.147
	Cash & Bank Balances	27.720
	Other Current Assets	0.000
	Loans & Advances	331.239
Total Current Assets		1445.406
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	758.795
	Current Liabilities	144.039
	Provisions	24.987
Total Current Liabilities		927.821
Net Current Assets		517.585
MISCELLANEOUS EXPENSES		0.000
TOTAL		1127.975

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Sales	1795.669	1590.604	1824.885
		Other Income	NA	NA	16.651
		TOTAL (A)	NA	NA	1841.536
Less	EXPENSES
		Cost of Materials			1079.475
		Personal Cost			131.598
		Administrative Expenses			657.281
		TOTAL (B)	NA	NA	1868.354
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		213.523	165.901	(26.818)
Less	FINANCIAL EXPENSES (D)		179.479	184.216	160.917
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		34.044	(18.315)	(187.735)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		87.550	23.186	24.296
Less	EXCEPTIONAL ITEMS
	Provision on Doubtful Debts				309.709
	Devaluation on slow moving and old inventory				68.269
	Prior period items				0.061
	PROFIT BEFORE TAX (E-F) (G)		(53.506)	(41.501)	(590.070)
Less	TAX (H)		115.473	115.827	(35.126)
	PROFIT AFTER TAX (G-H) (I)		(168.979)	(157.328)	(554.944)
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	231.103
	BALANCE CARRIED TO THE B/S		NA	NA	(323.840)
	EARNINGS IN FOREIGN CURRENCY		13.619	0.825	6.201
	Earnings Per Share (Rs.)		(14.26)	(14.37)	--

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	NA	(30.13)
Net Profit Margin (PBT/Sales)	(%)	NA	NA	(32.33)
Return on Total Assets (PBT/Total Assets}	(%)	(3.60)	(2.24)	(28.76)
Return on Investment (ROI) (PBT/Networth)		(0.39)	(6.67)	(3.61)
Debt Equity Ratio (Total Debt /Networth)		3.86	140.96	5.90
Current Ratio (Current Asset/Current Liability)		0.98	0.69	1.56

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)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	Yes
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

LITIGATION DETAILS

CASE DETAILS

Bench:-Bombay

Presentation Date:-				23/08/2013
Lodging No.:-	CAL/444/2013	Filing Date:-	23/08/2013

Petitioner:-

M/s Kiran Desginers

Respondent:-

Spykar Lifestyle Private Limited

Petn.Adv.:-

T N Tripathi and Company

District:-

MUMBAI

Bench:-	SINGLE
Status:-	Pre-Admission	Category:-	COMPANY APPLN. U/SEC 433,434,439 OF COMPANIES ACT

Last Date:-

30/08/2013

Stage:-

Last Coram:-

REGISTRAR(OS)/PROTHONOTARY & SR. MASTER

Act :-

Companies Act & Rules 1956

Under Section:-

433 AND 434

NOTE: Registered office of the company has been shifted from Kushal House 384, V S Road, Prabhadevi, Mumbai 400025, Maharashtra, India to the present address.

RESULTS OF OPERATIONS

During the year, your Company is able to achieve a growth by 12.89% in turnover. Turnover for the year is Rs. 1795.669 Millions as compared to Rs. 1590.604 Millions, in the previous Financial Year. The company recorded loss before tax of Rs. 53.506 Millions as against loss before tax Rs.41.501 Millions over the previous year mainly because of increase in depreciation on fixed assets by Rs.70.778 Millions.

Exceptional items includes profit from sale of assets, gain from one time settlement and expenses pertaining to Service tax and provision against doubtful advances.

UNSECURED LOAN

PARTICULARS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Short-term borrowings
Loans repayable on demand	0.000	9.300
Loans repayable on demand from others	57.466	0.000
Total	57.466	9.300

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10142434	21/01/2009	150,000,000.00	UNION BANK OF INDIA	LOWER PAREL BRANCH, YESHWANT BHAVAN, PANDURANG B UDHKAR MARG, LOWER PAREL, MUMBAI, MAHARASHTRA - 40 0013, INDIA	A56717598
2	10136365	05/09/2012 *	595,400,000.00		MID CORPORATE LOAN ADMINISTRATION UNIT,R.T.O LANE, ANDHERI (W), MUMBAI, MAHARASHTRA - 400053, INDIA	B58504291
3	10056469	19/06/2007	200,000,000.00	STANDARD CHARTERED BANK	90, M G ROAD,, FORT,, MUMBAI, MAHARASHTRA - 400001, INDIA	A17214842
4	90236391	30/12/2011 *	502,600,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, LEKHRAJ BHAVAN, SAKI VIHAR ROAD, SAKINAKA, ANDHERI (EAST),MUMBAI, MAHARASHTRA - 400072, INDIA	B30236319

Note: * Date of charge modification

CONTINGENT LIABILITIES (As on 31.03.2012):

There is a sales tax demand of Rs.9.52, Rs.54.86 and 158.96 for the year 2002-03, 2003-04 and 2004-05 respectively against which the Company has paid Rs.3, Rs.17 and Rs.27 respectively under protest. There is Income Tax demand for the A.Y. 2005-06 of Rs.1.86 and for A.Y. 2008-09 of Rs.13.33 as against the Company paid Rs.8.00 under protest. There is TDS demand for A.Y. 2007-08 of Rs.1.93 and A.Y. 2008-09 of Rs.13.58.

CORPORATE INFORMATION

Subject is a private limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company is engaged in the business of selling readymade garments apparel through a network of exclusive business outlets, multi-brand outlets and large retails chains.

FIXED ASSETS

Tangible assets

· Land

· Buildings

· Other building

· Plant and equipment

· Other plant and equipment

· Furniture and fixtures

· Vehicles

· Motor vehicles

· Office equipment

Intangible assets

· Computer software

PRESS RELEASES

RIVERSIDE, EUROPEAN RETAILERS EYE SPYKAR

AUGUST 22, 2012

MUMBAI: Global buyout fund Riverside and three European fashion retailers are in the fray to acquire India's biggest home-grown denim brand Spykar Lifestyles after Avigo Capital, which controls about 60% stake in the company, renewed plans to sell the business. Lincoln International is advising the seller on the deal with an expected enterprise valuation of almost $100 million, said sources familiar with the matter. The two-decade-old Spykar's founder Prasad Pabrekar holds the remaining 40% stake with no immediate plans to exit.

Avigo Capital declined to comment on the story. Sanjay Vakharia, director at Spykar, confirmed that Avigo is looking to exit the company and has appointed Lincoln to help find a buyer. India's fashion retail industry has not seen inbound acquisitions even though MandA activity has picked up of late with Aditya Birla acquiring Pantaloons.

The acquirer would get a ready platform in Spykar, which has a strong distribution network and sourcing set-up. The brand — with 1,350 point of sales, including 250 stand-alone stores — reported store sales of Rs 3250.000 Millions last fiscal in an $800-million denim market where international brands Levi's and Pepe hold the lead.

SPYKAR PROMOTERS IN TALKS WITH PE FIRM IVFA TO OFFLOAD 15%

AUGUST 13, 2013

NEW DELHI

The promoters of denim-wear brand Spykar Lifestyles are in advanced talks with private equity firm India Value Fund Advisors (IVFA) to offload a portion of their stakeholding in the Mumbai-based company.

Founder-promoters Prasad and Harshada Pabrekar, who currently hold about a 40% stake in the company, are in talks to divest 15% to IVFA, which manages assets to the tune of $1.2 billion (about 7,2000.000 Millions), according to sources with direct knowledge of the discussions.

The deal, which is expected to be finalised over the next month, could see the Pabrekars get about 700.000 Millions at current valuations.

If successful, the secondary transaction could see IVFA grab a 75% stake in one of India's largest domestic denim companies, as the India-focused private equity fund is also in talks with Avigo Capital to buy the latter's 60% ownership in Spykar. However, Vishal Nevatia, managing partner of IVFA, and S Harikrishnan, Managing Director at Avigo Capital, who is spearheading the negotiations, did not respond to email queries.

The payout is expected to be a structured one, based on cash payouts and certain milestones to be achieved by the company over the next two to three years. Founded in 1992, privately-held Spykar Lifestyles retails across 260 cities, from over 200 exclusive brand outlets, as well as over 1,000 multi-brand stores.

According to a recent report released by retail-focused consultancy Technopak, the India denim market, which is currently estimated at $1.3 billion (about 7,8000.000 Millions), is growing annually at 14% and is expected to cross $2.5 billion in revenue by 2017.

Private equity investments in the Indian apparel space have touched $571.8 million (about 3,4500.000 Millions) since 2008, according to Venture Intelligence. Some of the companies that have successfully raised risk capital in that period include Cotton County, Lilliput and Gini and Jony.

Avigo Capital, which has invested in Spykar Lifestyles across multiple rounds, has been on the lookout for an exit from the company for the past 18 months.

In 2012, Avigo Capital had co-invested 300.000 Millions in Spykar, along with its global Limited Partner, Metmin Investments, and had acquired a 30% stake in the process. The transaction was preceded by Avigo's 2007 investment in Spykar, where they paid 250.000 Millions for a similar 30% ownership.

SPENCER'S JOINS RACE TO BUY DENIM MAKER SPYKAR

NOVEMBER 5, 2012

Spencer’s Retail, flagship company of RP-Sanjiv Goenka Group, has joined the race to acquire Spykar Lifestyle, the biggest domestic denim maker. Spencer’s is in early stages of discussions with Avigo Capital, a private equity (PE) major that holds 60 per cent stake in Spykar.

Avigo has been looking for an exit since March. Lincoln International is advising Avigo on the buyer. Avigo has investments worth Rs 550.000 Millions in Spykar and is looking for an enterprise value of Rs 3500.000 Millions.

Last year, Avigo, after roping in its global investor, Metmin Investments, had acquired about 30 per cent stake in Spykar by investing about Rs 300.000 Millions. Metmin Investments is owned by Raj Bagri, a non-resident Indian tycoon who was chairman of the London Metal Exchange earlier. In 2007, Avigo had invested about Rs 250.000 Millions in Spykar.

According to sources, apart from the RP-Sanjiv Goenka group, Aditya Birla Group is also in discussions for buying out Spykar, to expand its retail brand portfolio. And, two PE funds, Everstone Capital and India Value Fund Advisors, have also evinced interest in Avigo's stake.

When asked, S Harikrishnan, managing director of Avigo, confirmed they were in talks with PE funds and domestic groups but refused to disclose details. Mail sent to Spencer’s spokesperson did not elicit a response.

Though a few foreign retailers such as Adolfo Dominguez had earlier shown interest in Spykar, they are not keen now, as the fate of foreign direct investment in the retail sector remains uncertain, said another source in the know.

Spykar, established by Prasad Pabrekar in 1992, is a popular denim garment brand. Currently, Pabrekar holds 40 per cent in the company. Spykar products are sold through 1,000 multi-brand and 198 exclusive brand outlets. Plans to launch a children’s brand have not taken off yet.

Last week, the Rs 9,0000.000 Millions RP-Sanjiv Goenka Group announced plans to list Spencer’s Retail, after demerging it from CESC. The group has plans to induct a strategic investor in the company. Spencer’s had a turnover of Rs 7140.000 Millions in the first six months of this financial year, compared to Rs 5600.000 Millions in the same period last year. Their popular labels include Island Monks (casual wear), Mark Nicolas (formal wear), Asankhya (women’s ethnic wear), Scorez (sportswear) and La Bonita (footwear). It runs about 200 stores, including 30 large format ones, across 40 cities.

NEWS ROUNDUP: INDIA VALUE FUND IN ADVANCED TALKS TO BUY CONTROLLING STAKE IN SPYKAR

MAY 29, 2013

Avigo and Metmin jointly hold 60% stake in casual wear brand Spykar.

Private equity investor India Value Fund Advisors is in advanced talks to buy the controlling stake of Avigo Capital Partners and Metmin Investments in financially strained casual-wear company Spykar Lifestyles Private Limited. Avigo and Metmin jointly hold a 60% stake in Spykar. India Value Fund is “doing due diligence and has emerged as the final contender. Once the process is completed, it would take three to four weeks to close the deal, the person said. Spykar’s promoters, Prasad Pabrekar and Harshada Pabrekar, hold the remaining 40% stake in the company. In this round, the new investor could end up having stake of as much as 76%. The investors will exit and there could be a partial stake sale by the promoters. 

GAIL to raise INR 1,0000.000 Millions via bonds: GAIL plans to raise INR 1,0000.000 Millions ($179.17 million) through a domestic bond issue to partly meet its capital expenditure, even as the gas utility reported a 28% jump in its January-March quarter profit on the back of higher revenues from gas trading and petrochemicals as well as lower subsidy burden. GAIL would invest INR 7,5000.000 Millions (INR 1.3 billion) in the current fiscal, mostly in expanding its pipeline network. Of the planned capex for current year, about INR 3,5000.000 Millions ($627.11 million) would come from internal resources or accruals. For the rest, we plan to borrow INR 1,0000.000 Millions ($179.17 million) in the next quarter from rupee bond issue and another INR 1,5000.000 Millions ($268.76 million) through external commercial borrowings. 

OVL plans to raise $3 billion for Kazakh acquisition: ONGC Videsh Limited, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), plans to raise at least $3 billion (INR 16,7430.000 Millions) in debt to part-fund acquisition of US energy giant ConocoPhillips' stake in a Kazazkhstan oilfield. The company may take a loan on $1.5 billion or $2 billion from its parent ONGC and the rest $3 billion through overseas debt. OVL in November last year agreed to buy ConocoPhillips' 8.4% stake in Kazakhstan's biggest oilfield, Kashagan, for $ 5 billion. The company raised $300 million (INR 1,6740.000 Millions) through a 5-year tenor unsecured bond and $500 million (INR 1,6740.000 Millions) through a 10-year Note. The 10-year bond bears fixed coupon of 3.756% per annum while the 5-year note will bear 2.574% per annum.

United Spirits may sell Scottish distiller Invergordon: United Spirits (USL) will consider selling Scottish grain whisky distillery Invergordon, which it acquired as part of the $1.18-billion Whyte and Mackay acquisition six years ago. The Office of Fair Trade in UK, which reviewed the recent Diageo takeover of USL, has flagged concern that the combined grain whisky distillation violates competition laws. Invergordon Distillers and Cameronbridge, the latter already owned by Diageo, are among the largest grain whisky plants in Scotland. Diageo also owns a 50% stake in North British Distillery, which has 60-million-litre capacity. But the UK regulator is unlikely to demand further sale of Whyte and Mackay assets to clear Diageo's $2-billion deal with USL. 

Hindustan Petroleum eyes BP, Total as partner in Vizag project: State-run Hindustan Petroleum has approached global energy giants such as Total SA of France and British major BP to revive the stalled INR 50,0000.000 Millions ($8.95 billion) refinery-cum-petrochemical project at Vizag in Andhra Pradesh. The 15 million tonne a year refinery and a mega petrochem plant is planned to be built about 70 km away from the company's existing Vizag refinery. GAIL has expressed interest in taking stake in petrochemical plant, while for refinery, the firm have written to 13-14 global majors for participation. The company also approached Oil India and Indian Oil Corporation but they have yet to respond. 

Micro Tech plans to raise INR 3000.000 Millions by selling stake in two units: Micro Technologies, provider of security and surveillance solutions, intends to raise over INR 3000.000 Millions ($53.75 million) by selling stake in two subsidiaries. The proceeds of the stake sale would be used to pare overall debt of INR 3000.000 Millions and unlock value in group companies. The company has initiated discussions with several private equity players to divest up to 35% stake in its majority owned units Micro Secure Solutions and Micro Retail. Micro Tech is also scouting for an independent consultant to value the entire bouquet of its products and services. 

American Tower Corporation close to acquiring Tower Vision for INR 3,2000.000 Millions: American Tower Corporation is close to acquiring Tower Vision, a standalone telecom tower company owned by a group of international financial investors, for INR 3,2000.000 Millions ($573.35 million), a transaction that will enable the US company to significantly scale up its presence in India. Two people familiar with the developments said the deal, which has been in the works since the beginning of the year, is likely to close within 60 days. ATC is offering Rs 4.000 Millions per tower for 8,000 towers of Tower Vision that have been on the block since 2010. The valuation is marginally lower than the Rs 4.600 Millions per tower GTL Infrastructure paid for acquiring Aircel's tower business in January 2010. 

India Plans to Sell More NHPC Stake: India plans to sell a 11.36% stake in state-run hydroelectric company NHPC Limited., this fiscal year with a target to raise about 30 billion rupees ($538 million). The proposed public share sale is part of the government's plan to raise $7.3 billion by selling shares in state-run companies in the fiscal year that started April 1. Last year, the government fell about $1 billion short of its $5.4 billion revenue target from stake sales as it postponed some share offerings due to volatile market conditions. The power ministry is looking to get the proposal approved by the Cabinet Committee on Economic Affairs as soon as possible. Currently, the government owns 86.36% stake in the company. 

SUUTI stake sale back on govt agenda: The finance ministry is mulling a partial sale of stakes held by the SUUTI, or the Specified Undertaking of the Unit Trust of India, in some companies. It will also take a relook at selling the rump shares in Balco and Hindustan Zinc. The SUUTI holds 23.58% stake in Axis Bank, 11.54% in ITC and over 8% in Larsen and Toubro (LandT). The defence ministry is believed to be against a stake sale in L and T as the company is involved in defence contracts. The sale of a large holding in ITC could see a change in the management of the tobacco-to-hotels giant. However, a stake sale in Axis Bank may not have a major impact on the ownership structure. The market value of SUUTI’s holding in these companies is believed to be INR 45,0000.000 Millions – INR 50,0000.000 Millions ($8 billion - $8.9 billion).

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.61.69
UK Pound	1	Rs.98.59
Euro	1	Rs.83.67

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		44

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.