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                                                                   EXHIBIT 10.11

[HSBC LOGO]

Ref:           Corporate & Institutional Banking - International Division L9

CONFIDENTIAL

Novel Denim Holdings Ltd
1/F Novel Industrial Building
850-870 Lai Chi Kok Road
Cheung Sha Wan
Kowloon

Attention: Mr Peter Leung / Mr Vincent Chan                        27 March 2002

Dear Sirs

BANKING FACILITIES
A/C NO 580-179059

With reference to our recent discussion, we are pleased to advise that we have
reviewed your banking facilities and offer a renewal within the following
limits which will be made available on the specific terms and conditions
outlined below and subject to the satisfactory completion of the security below.
These facilities are also subject to review at any time and, in any event by 15
March 2003, and subject to our overriding right of suspension, withdrawal and
repayment on demand, including the right to call for cash cover on demand for
prospective and contingent liabilities.

FACILITY       :          Term loan of USD9,000,000.-.

TERM           :          54 months

INTEREST       :          Interest on the loan will continue to be charged at
                          0.75% per annum over 1, 2 or 3 months LIBOR (London
                          Interbank Money Market Offer Rate), subject to
                          availability in the market, payable at the end of each
                          interest period to the debit of your current account
                          no. 580-179059-001. Interest shall be calculated on
                          actual days elapsed in a year of 360 days for USD
                          loan.

                          The applicable LIBOR will be that quoted by us at or
                          about 11:00 a.m. on the date of drawdown / rollover.

REPAYMENT      :          Principal of the loan is to be repaid by 16 equal
                          quarterly repayments of USD562,500.- each. The first
                          repayment will be made at the end of December 2002.


                                                                      ..../2

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED
Hong Kong Main Office: 1 Queen's Road Central, Hong Kong
Te1:2822 1111 Fax:
Telex: 73205 HSBC HX Telegrams: Hongbank Hongkong              Page______ /_____
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Novel Denim Holdings Ltd                                           27 March 2002
                                       -2-

General conditions for the utilisation of the LIBOR Loan facilities:-

a)       2 working days advance notice of drawdown / rollover is to be given to
         us for LIBOR facilities respectively. Once a quotation has been given
         and accepted by you, we will thereupon be bound to make, and you will
         thereupon be bound to accept, any advance on the terms so agreed.

b)       Drawdown / rollover to be for periods of 1,2 or 3 months.

c)       No partial drawing is allowed.

d)       With our prior approval, (which will not be withheld, provided we are
         satisfied that the funds utilised are generated from your internal
         resources, out of cash flow rather than from external re-financing)
         during an interest period any amount of outstanding loan may, with 48
         hours advance notice to us, be repaid subject to the usual charges
         (i.e. the differential between the return we would have received had
         such amount run to maturity and the return we are able to obtain by the
         placing of the funds repaid for the remainder of the period in the
         market).

e)       We reserve the right to renegotiate the LIBOR interest spreads should
         any event occur which changes the basis on which LIBOR interest margins
         are presently calculated.

Please note that Loans Section in our Mongkok District Commercial Banking Centre
is responsible for the administration of LIBOR facilities. For rate quotations
and other day to day administrative matters, please contact our Mrs Johanna Lam
on telephone number 2390-1575.

ACCRUAL OF INTEREST AND OTHER SUMS

Please note that interest and other sums expressed to be chargeable or payable
on a periodic basis will nonetheless accrue from day to day and amounts so
accrued may be demanded at any time.

DISCLOSURE OF INFORMATION

Unless expressed in writing from you to the contrary, we may provide any
information relating to any of your accounts with us and any facilities we may
provide to you from time to time or their conduct or any other information
concerning your relationship with us to any other company or office which at the
relevant time belongs to or is part of the HSBC Group.

SECTION 83 OF THE BANKING ORDINANCE

Please note that Section 83 of the Banking Ordinance has imposed on us as a bank
certain limitations on advances to persons related to our directors or
employees. In acknowledging this Facility Letter you should advise us whether
you are in any way related to any of our directors or employees within the
meaning of Section 83 and in the absence of such advice we will assume that you
are not so related. We would also ask, should you become so related subsequent
to acknowledging this Facility Letter, that you immediately advise us in
writing.

                                                                          ..../3

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Novel Denim Holdings Ltd                                           27 March 2002

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ACCEPTANCE

Please arrange for the authorised signatories of your company, in accordance
with the terms of the mandates given to the Bank, to sign and return to us
before 17 April 2002 the duplicate copy of this letter to signify your
understanding and acceptance of the terms and conditions under which these
facilities are granted.

We are pleased to be of continued assistance.

Yours faithfully

/s/ Roddy K W Lau
---------------------------
Roddy K W Lau
Global Relationship Manager

Encl


                                   For and on behalf of
                                   NOVEL DENIM HOLDINGS LIMITED

                                   /s/ Lester Ma
                                   ----------------------------
                                        Authorized Signature(s)