MIRA INFORM REPORT

Report Date :

26.09.2013

IDENTIFICATION DETAILS

Name :	CRYSTAL LACE (INDIA) LIMITED
Registered Office :	Plot No. 27, TTC Industrial Estate, MIDC, Mahape Village, Navi Mumbai-400710, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.02.1994
Com. Reg. No.:	11-076439
Capital Investment / Paid-up Capital :	Rs.197.037 Millions
CIN No.: [Company Identification No.]	U17291MH1994PLC076439
TAN No.: [Tax Deduction & Collection Account No.]	MUMC10409A
PAN No.: [Permanent Account No.]	AAACC2118G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Supplier and Exporter of Embroidered Fabrics and Laces.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 121000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Latest financial data are not available. As per the available financial, the company has incurred huge losses from its operations for past 2 years. However, trade relations are reported as fair. Business is active. Payments are reported to be unknown. The company can be considered for business dealings with great caution.

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 DECLINED

Management non co-operative [91-22-55902951]

LOCATIONS

Registered Office/ Factory :	Plot No. 27, TTC Industrial Estate, MIDC, Mahape Village, Navi Mumbai-400710, Maharashtra, India
Tel. No.:	91-22-55902951/ 65162951
Fax No.:	91-22-55902959/ 27781592
E-Mail :	lace@vsnl.com accountscrystal@gmail.com
Website :	http://www.crystallace.com

DIRECTORS

AS ON 29.09.2012

Name :

Mr. Kartar Singh Sethi

Designation :

Director

Address :

169, Rajawongse Road, Bangkok, Thailand

Date of Appointment :

04.02.1994

Name :

Mr. Singh Panichkrivalkosil

Designation :

Director

Address :

22/3, Sukhumvit SOI, 47, Bangkok, Thailand

Date of Appointment :

01.11.1995

Name :

Amon Panichkrivalkosil

Designation :

Director

Address :

25/1, Charansanitwongse Road, SOI 1, Thapra, Bangkok, Thailand

Date of Appointment :

01.11.1995

Name :

Mr. Rajkumar Sekhani

Designation :

Director

Address :

Flat No. 302, Arihant Building, Near Tera Bhawan, Thakur Complex, Kandivali (East), Mumbai-400101, Maharashtra, India

Date of Appointment :

16.10.2007

Din No.:

00102843

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	L17291MH1991PLC063752	PIONEER EMBROIDERIES LIMITED	Managing director	30/08/2012	25/11/1991	Active	NO
2	U67120WB1995PTC067131	SEKHANI SHARE & STOCKS PRIVATE LIMITED	Director	15/01/1995	15/01/1995	Active	NO
3	U72900MH2000PLC125115	PIONEER E-COM FASHIONS LIMITED	Director	22/03/2000	22/03/2000	Active	NO
4	U17000GJ2000PTC044536	REACH INDUSTRIES PRIVATE LIMITED	Director	06/12/2002	06/12/2002	Active	NO
5	U67190MH1993PLC072786	HAKOBA LIFESTYLE LIMITED	Director	28/04/2003	28/04/2003	Active	NO
6	U17299KA1996PTC020600	ROYAL EMBROIDERIES PRIVATE LIMITED	Director	10/03/2005	10/03/2005	Dormant	NO
7	U74899DL2000PTC104065	MAS EMBROIDERIES PRIVATE LIMITED	Director	31/03/2006	31/03/2006	Active	NO
8	U70101MH2007PLC169361	PIONEER REALTY LIMITED	Director	29/03/2007	29/03/2007	Active	NO
9	U17291MH1994PLC076439	CRYSTAL LACE (INDIA) LIMITED	Director	25/09/2008	16/10/2007	Active	NO

Name :

Mr. Harsh Vardhan Bassi

Designation :

Director

Address :

C-151, The Icon, Gold Link Road, DLF Phase-V, Gurgaon-122009, Haryana, India

Date of Appointment :

16.10.2007

Din No.:

00102941

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	L17291MH1991PLC063752	PIONEER EMBROIDERIES LIMITED	Whole-time director	29/10/2010	10/12/2003	-	Active	NO
2	U67190MH1993PLC072786	HAKOBA LIFESTYLE LIMITED	Director	15/11/2004	15/11/2004	-	Active	NO
3	U70101MH2007PLC169361	PIONEER REALTY LIMITED	Director	29/03/2007	29/03/2007	-	Active	NO
4	U74899DL2000PTC104065	MAS EMBROIDERIES PRIVATE LIMITED	Director	05/06/2007	05/06/2007	-	Active	NO
5	U17291MH1994PLC076439	CRYSTAL LACE (INDIA) LIMITED	Director	25/09/2008	16/10/2007	-	Active	NO
6	U74994MH2008PTC184212	ABOUT U FASHIONS PRIVATE LIMITED	Director	02/07/2008	02/07/2008	01/09/2008	Active	NO

Name :

Mr. Manoj Sumer Parakh

Designation :

Director

Address :

104, Krishna Place, Asha Nagar, Kandivali (East), Mumbai-400101, Maharashtra, India

Date of Appointment :

23.06.2008

Din No.:

01692671

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U51909MH2003PTC140355	SUNWAY TRADING COMPANY PRIVATE LIMITED	Director	13/05/2003	13/05/2003	Active	NO
2	U51909MH2003PTC140148	WOODMAC TRADING COMPANY PRIVATE LIMITED	Director	24/12/2004	24/12/2004	Active	NO
3	U17000GJ2000PTC044536	REACH INDUSTRIES PRIVATE LIMITED	Director	30/07/2005	30/07/2005	Active	NO
4	U17291MH1994PLC076439	CRYSTAL LACE (INDIA) LIMITED	Director	25/09/2008	23/06/2008	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 15.03.2013

Names of Allottees	No. of Shares
Raj Kumar Sekhani	500000
TOTAL	500000

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Kartar Singh Sethi	10
Raj Kumar Sekhani	3
Aarav Sekhani	2
Ashok Kumar Munshi	2
Harsh Vardhan Bassi	3
Pioneer E-Com Fashions Limited, India	3491420
Crystal Holding Limited, Mauritius	974990
S.R. Investments Limited, Mauritius	503940
Pioneer Embroideries Limited, India	4400000
TOTAL	9370370

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	15.78
Bodies corporate	84.21
Directors or relatives of directors	0.01
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Supplier and Exporter of Embroidered Fabrics and Laces.

GENERAL INFORMATION

No. of Employees :

Information declined by the management.

Bankers :

Not Available

Facilities :

Secured Loan	As on 31.03.2011 [15 Months]	As on 31.12.2009 [12 Months]
	Rs. in Millions
Loans taken for vehicles	0.000	0.235
Other debts	183.400	153.400
TOTAL	183.400	153.635

Banking Relations :	--
Financial Institution :	Pioneer Embroideries Limited, Hakoba Compound, Western Express Highway, Borivali, Mumbai-400066, Maharashtra, India
Auditors :
Name :	Parag G Shah and Associate Chartered Accountants
Address :	B 24, Mahavir Nagar, Factory Lane, LT Road, Borivali (East), Mumbai, Maharashtra, India
PAN No:	AACPS0907J

CAPITAL STRUCTURE

AS ON 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9370370	Equity Shares	Rs.10/- each	Rs.93.704 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
19703705	Equity Shares	Rs.10/- each	Rs.197.037 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011 [15 Months]	31.12.2009 [12 Months]	31.12.2008
SHAREHOLDERS FUNDS
1] Share Capital		197.037	197.037	197.037
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		230.256	243.954	252.174
4] (Accumulated Losses)		(396.863)	(365.404)	(228.157)
NETWORTH		30.430	75.587	221.054
LOAN FUNDS
1] Secured Loans		183.400	153.635	154.463
2] Unsecured Loans		0.235	0.000	0.000
TOTAL BORROWING		183.635	153.635	154.463
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		214.065	229.222	375.517
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		229.354	246.995	257.595
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	104.877
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.336	0.659	8.108
	Sundry Debtors	6.691	7.503	13.305
	Cash & Bank Balances	0.239	0.150	0.073
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	4.022	6.857	13.490
Total Current Assets		11.288	15.169	34.976
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	25.978	32.002	19.724
	Other Current Liabilities	0.599	0.940	2.207
	Provisions	0.000	0.000	0.000
Total Current Liabilities		26.577	32.942	21.931
Net Current Assets		(15.289)	(17.773)	13.045
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		214.065	229.222	375.517

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011 [15 Months]	31.12.2009 [12 Months]	31.12.2008
	SALES
		Income	4.507	19.456	56.751
		Other Income	0.549	0.110	3.217
		TOTAL (A)	5.056	19.566	59.968
Less	EXPENSES
		Consumption Materials Changes Inventories	4.052	16.003
		Manufacturing Service Costs	0.150	5.111	86.663
		Employee Related Expenses	20.749	19.600
		Administrative Selling Other Expenses	6.865	8.780
		TOTAL (B)	31.816	49.494	86.663
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(26.760)	(29.927)	(26.695)
Less	FINANCIAL EXPENSES (D)		0.087	0.063	0.198
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(26.847)	(29.990)	(26.893)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.944	2.380	8.241
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(30.791)	(32.370)	(35.134)
Less	TAX (H)		0.000	104.877	(12.414)
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(30.791)	(137.247)	(22.720)
	Earnings / (Loss) Per Share (Rs.)		(1.60)	(1.64)	(1.15)

KEY RATIOS

PARTICULARS		31.03.2011 [15 Months]	31.12.2009 [12 Months]	31.12.2008
PAT / Total Income	(%)	(608.99)	(701.45)	(37.89)
Net Profit Margin (PBT/Sales)	(%)	(683.18)	(166.37)	(61.91)
Return on Total Assets (PBT/Total Assets}	(%)	(12.80)	(12.35)	(12.00)
Return on Investment (ROI) (PBT/Networth)		(1.01)	(0.43)	(0.15)
Debt Equity Ratio (Total Debt/Networth)		6.03	2.03	0.70
Current Ratio (Current Asset/Current Liability)		0.42	0.46	1.59

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	No
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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10155489	11/02/2010 *	183,400,000.00	PIONEER E-COM FASHIONS LIMITED	UNIT 101B, 1ST FLR, ABHISHEK PREMISES, PLOT NO.C5-6, DALIA INDUSTRIAL ESTATE, OFF. NEW LINK ROAD, ANDHERI (W), MUMBAI - 400058, MAHARASHTRA, INDIA	A79398467
* Date of charge modification

Unsecured Loan	As on 31.03.2011 [15 Months]	As on 31.12.2009 [12 Months]
	Rs. in Millions
Loans directors	0.235	0.000
TOTAL	0.235	0.000

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.62.70
UK Pound	1	Rs.100.27
Euro	1	Rs.84.45

INFORMATION DETAILS

Information Gathered by :	NYA
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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.