1. Summary Information

Company Name	GOOD LEATHER SHOES PRIVATE LIMITED	Principal Name 1	MR. K.E. RAMASWAMY NAIDU
Status	GOOD	Principal Name 2	MR. K. R. VIJAYAN
Street Address	NO. 47, THIRUVENGADAM STREET, PERIAMET, CHENNAI – 600003, TAMILNADU, INDIA
Established Date	24.08.1994	SIC Code	--
Telephone#	91-44-25368090 / 5365955 / 5380512 / 25611255 / 25611090	Business Style 1	MANUFACTURER
Fax #	91-44-25380512 / 25610512	Business Style 2	EXPORTER
Homepage	http://www.goodleather.net	Product Name 1	Cow And Cow Calf Finished Leather
# of employees	175	Product Name 2	LEATHER SHOE UPPERS
Paid up capital	Rs. 19750000	Product Name 3	LEATHER FOOTWEAR
Shareholders	DIRECTORS OR RELATIVES OF DIRECTORS (100%)	Banking	STATE BANK OF INDIA
Public Limited Corp.	NO	Business Period	14 YEARS
IPO	NO	International Ins.	-
Public Enterprise	NO	Rating	Ba
Related Company
Relation	Country	Company Name	CEO
ASSOCIATES	--	SPLENDID LEATHER COMPANY (SLC)	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2008		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	66275000	Current Liabilities	54119000
Inventories	68223000	Long-term Liabilities	134886000
Fixed Assets	107497000	Other Liabilities	000
Deferred Assets	000	Total Liabilities	189005000
Invest& other Assets	3624000	Retained Earnings	36864000
		Net Worth	56614000
Total Assets	245619000	Total Liab. & Equity	245619000
Total Assets (Previous Year)	226842000
P/L Statement as of	31.03.2008		(Unit: Indian Rs.)
Sales	518418000	Net Profit	14142000
Sales(Previous yr)	577461000	Net Profit(Prev.yr)	7780000

MIRA INFORM REPORT

Report Date :

15.12.2008

IDENTIFICATION DETAILS

Name :	GOOD LEATHER SHOES PRIVATE LIMITED
Registered Office :	No. 47, Thiruvengadam Street, Periamet, Chennai – 600003, Tamilnadu
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	24.08.1994
Com. Reg. No.:	18-28398
CIN No.: [Company Identification No.]	U19201TN1994PTC028398
TAN No.: [Tax Deduction & Collection Account No.]	CHEG05011G
Legal Form :	Private limited liability company
Line of Business :	Manufacturer, Exporter and Importer of Cow and Cow Calf Finished Leather, Leather Shoe Uppers, Leather Footwear, etc.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 280000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Directors are reported as experienced, respectable and having substantial means of their own. Their trade relations are fair. Payments are correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions

LOCATIONS

Registered/Administrative Office :	No. 47, Thiruvengadam Street, Periamet, Chennai – 600003, Tamilnadu, India
Tel. No.:	91-44-25368090 / 5365955 / 5380512 / 25611255 / 25611090
Fax No.:	91-44-25380512 / 25610512
E-Mail :	goodledr@md4.vsnl.net.in goodledr@touchtelindia.net goodledr@goodleather.net
Website :	http://www.goodleather.net
Area :	Owned
Factory :	49, Goparasanallur, Puliampedu, Noombal Post, Chennai – 600077, Tamil Nadu, India Tel. No. 91-44-25380512/26272759/26496310 158, Thiruneermalai Road, Chrompet, Chennai – 600044, Tamil Nadu, India Tel. No. 91-44-22412727 Fax No. 91-44-25380512 No. 702/6, M. B. T. Road Cross, Rainpet Tamil Nadu- Tannery

DIRECTORS

Name :	Mr. K.E. Ramaswamy Naidu
Designation :	Director
Address :	34, Second East Main Road, Gandhinagar, Vellore – 632001, Tamil Nadu, India
Date of Birth/Age :	15.12.1924
Date of Appointment :	24.08.1994
Name :	Mr. K. R. Vijayan
Designation :	Managing Director
Address :	34, Second East Main Road, Gandhinagar, Vellore – 632001, Tamil Nadu, India
Date of Birth/Age :	01.06.1953
Date of Appointment :	24.08.1994
Name :	Mr. K. R. Babu
Designation :	Director
Address :	34, Second East Main Road, Gandhinagar, Vellore – 632001, Tamil Nadu, India
Date of Birth/Age :	16.03.1969
Date of Appointment :	24.08.1994
Name :	Mr. R. Sekaran
Designation :	Director
Address :	34, Second East Main Road, Gandhinagar, Vellore – 632001, Tamil Nadu, India
Date of Birth/Age :	28.05.1960
Date of Appointment :	24.08.1994
Name :	Mr. R. Perumal
Designation :	Director
Address :	34, Second East Main Road, Gandhinagar, Vellore – 632001, Tamil Nadu, India
Date of Birth/Age :	22.03.1962
Date of Appointment :	24.08.1994
Name :	Mr. K. R. Munikannan
Designation :	Director
Address :	34, Second East Main Road, Gandhinagar, Vellore – 632001, Tamil Nadu, India
Date of Birth/Age :	28.05.1970
Date of Appointment :	24.08.1994
Name :	Mr. K. Govinda Raju
Designation :	Director
Address :	34, Second East Main Road, Gandhinagar, Vellore – 632001, Tamil Nadu, India
Date of Birth/Age :	01.07.1946
Date of Appointment :	24.08.1994

KEY EXECUTIVE

Name :	Mr. G. Porselvam
Designation :	Company Secretary
Address :	No. 25, Thiyagaraj Street, North Usman Road, T. Nagar, Chennai – 600017
Tel No.:	91-44-28142955
Mobile :	91-9841016465
E-Mail :	gpselvam@eth.net

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
K. E. Ramaswamy Naidu	28500
K. R. Vijayan	28500
K. R. Babu	28100
R. Sekaran	28100
R. Perumal	28100
K. R. Munikannan	28100
K. Govinda Raju	28100
Total	197500

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2008

Category	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Cow and Cow Calf Finished Leather, Leather Shoe Uppers, Leather Footwear, etc.
Exports :
Products :	Finished Leather

GENERAL INFORMATION

Suppliers:

· Acme Enterprises

· Baba Pile Foundation Works

· Indo Built Storage Systems (Private) Limited

· Jaybharat Lifts (Private) Limited

· Megawin Switchgear (Private) Limited

· Pandian and Company

· Premavathy Traders

· Saro Electricals

· Sastha Build Mart

· Sesha Tiles and Saniteries

· Shree Luckmiraam Associates

· Sri Ganesh Saw Mill

· Sri Seven Hills Engineers

· V2 Associates

· V2 Foundations

Customers :

· A.V. Thomas Leather Allied Products Private Limited

· Almox Suddutsche MBH

· Bachi Shoes

· BBK Shoes and Leather Private Limited

· B eaconsfield Footwear Limited

· Bureau Vertias Certification (India) Private Limited

· Coronel SPA

· CMF Industrial Components Limited

· Digicom Leather Manufacturers

· Enco Shoes

· Equity Shoes Limited

· Forward Leather Company

· Gabor Shoes AG

· Goodsyl Exports Private Limited

· Good Leather Company

· Gayarthri Shoes

· Gupta Overseas

· Harani Enterprises

· Hi Fashion Leather Products

No. of Employees :

175 persons -- 20 persons in office, 5 persons in branch and 150 persons in factory

Bankers :

² State Bank of India, Commercial Branch, 1^st Floor, Palar Towers, Walajapet- 632513, Tamilnadu, India

² ABN Amro Bank

² HDFC Bank

² ICIC Bank

² Indian Bank

² Axis Bank

Facilities:

Secured Loan	31.03.2008 Rs. In Millions
State Bank of India – Cash credit Account	96.012
ICICI Bank - Cat loan	0.540
State Bank of India Term Loan -2	38.334
Total	134.886

Banking Relations :

Satisfactory

Auditors :

Name :

K. V. Chandramouli and Company

Chartered Accountants

Address :

36, Thennamaram Street, Vellore – 632001, Tamilnadu, India

Associates :

· Splendid Leather Company (SLC)

Line of business : Processing and Export of Goat kid Finished Leather

· Venkat Shoes Private Limited (VSPL)

47, Thiruvengadam Street, Periamet, Chennai – 600003,

Tamil Nadu, India

Line of business : Manufacture and Export of Shoe Uppers

· Good Leather Company  (GLC)

Line of Business : Processing and Export of Cow & Cow Calf Finished Leather

· Splendid Leather Company (SLC)

Line of Business : Processing and Export of Goat kid Finished Leather

CAPITAL STRUCTURE

As on 31.03.2008

Authorised Capital :

No. of Shares	Type	Value	Amount
200,000	Equity Shares	Rs.100/- each	Rs. 20.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5000	Equity Shares	Rs.100/- each	Rs. 0.500 Millions
192500	Equity Shares	Rs. 100/- each	Rs. 19.250 Millions
	Total		Rs. 19.750 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		19.750	19.750	19.750
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		36.864	22.710	14.930
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		56.614	42.460	34.680
LOAN FUNDS
1] Secured Loans		134.886	124.901	78.863
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		134.886	124.901	78.863
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		191.500	167.361	113.543
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		107.497	83.406	31.292
Capital work-in-progress		0.000	5.059	0.000
INVESTMENT		3.624	3.067	2.723
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	68.223	85.005	0.000
	Sundry Debtors	34.163	23.938	27.723
	Cash & Bank Balances	11.069	14.766	17.540
	Other Current Assets	14.399	7.911	93.080
	Loans & Advances	6.644	3.690	1.576
Total Current Assets		134.498	135.310	139.919
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	50.344	56.543	56.534
	Provisions	3.775	2.938	3.857
Total Current Liabilities		54.119	59.481	60.391
Net Current Assets		80.379	75.829	79.528
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		191.500	167.361	113.543

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		518.418	577.461	515.329
Other Income		0.000	0.000	0.000
Total Income		518.418	577.461	515.329
Profit/(Loss) Before Tax		21.604	13.720	6.317
Provision for Taxation		7.461	5.940	0.000
Profit/(Loss) After Tax		14.142	7.780	6.317
Expenditures :
	Interest	13.052	69.991	3.376
	Depreciation & Amortization	14.047	7.498	3.853
	Other Expenditure	469.715	471.763	501.783
Total Expenditure		496.814	549.252	509.012

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	2.73	1.34	1.23
Net Profit Margin (PBT/Sales)	(%)	4.17	2.37	1.23
Return on Total Assets (PBT/Total Assets}	(%)	8.93	6.27	3.68
Return on Investment (ROI) (PBT/Networth)		0.38	0.32	0.18
Debt Equity Ratio (Total Liability/Networth)		3.34	4.34	4.01
Current Ratio (Current Asset/Current Liability)		2.49	2.27	2.31

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

Name of the company	GOOD LEATHER SHOES PRIVATE LIMITED
Presented By	Sri K. R. Vijayan, Managing Director
1) Date and description of instrument creating the change	Guarantee Agreement for Small Industrial Advances dated 04.12.2002 granted to M/s. Good Leather Company
2) Amount secured by the charge/amount owing on the securities of charge	Corporate Guarantee for the financial assistance granted to M/s. Good Leather Company totaling to Rs. 5.200 millions together with Interest, Costs, Charges and other expenses which may be debited to the account from time to time.
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Corporate Guarantee extended to cover the entire assets of the company valued at Rs. 15.900 millions as on 31.03.2002
4) Gist of the terms and conditions and extent and operation of the charge.	The guarantee is a continuing guarantee
5) Name and Address and description of the person entitled to the charge.	State Bank of India Commercial Branch, 1^st Floor, Palar Towers, Walajapet – 632513, Vellore District
6) Date and brief description of instrument modifying the charge	Guarantee Agreement for small industrial advances dated 06.07.2005
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	The corporate guarantee extended for the revised Credit facilities granted to M/s. Good Leather Company, by State Bank of India, Commercial Branch, Walajapet, stands revised upwards from Rs. 5.200 millions to Rs. 9.200 millions

This form is for	Creation of charge
Corporate identity number of the company	U19201TN1994PTC028398
Name of the company	GOOD LEATHER SHOES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	No. 47, Thiruvengadam Street, Periamet, Chennai – 600003, Tamilnadu, India
Type of charge	Others
Particular of charge holder	State Bank of India, Commercial Branch, 1^st Floor, Palar Towers, Walajapet- 632513, Tamilnadu, India
Nature of description of the instrument creating or modifying the charge	Guarantee Agreement dated 23.09.2008 Letter Evidencing the extension of Equitable mortgage vide Letter dated 26.09.2008
Date of instrument Creating the charge	23.09.2008
Amount secured by the charge	Rs. 15.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Corporate Guarantee Terms of Repayment As per agreement Margin As per agreement Extent and Operation of the charge The charge extends to the whole of the properties of the company in respect of credit limits sanctioned to M/s Splendid leather company amounting to Rs. 15.000 Millions
Short particulars of the property charged	The charge extends to the whole of the properties of the company in respect of credit limits sanctioned to M/s Splendid leather company amounting to Rs. 15.000 Millions

Fixed Assets:

² Land

² Building

² Furniture and Fixtures

² File Pack

² Wall Fons

² Vaccum Cleaner

² Interior Décor

² Machienry

² Conveyor Dub

² Bus

² EPBX

² Stabilizer

² Air-conditioner

² Power Equipments

² Fax/ Copier

² Fire Extinguisher

² TVS 50

² Generator

² Ficher Van

² Electrical Isntallations

² Computer and Accessories

² Software

WEBSITE DETAILS

Good Leather Company, the Flagship Firm, was found in May 1988, Honest and Straight forward articulation of the founder family helped

Set a clear 'vision'. Commitment, dedication and involvement in work has been the key to their slow and steady growth.

High quality products. Diverse and increasing product range.  Prompt delivery.  Customer satisfaction.

Products
Good Leather Company:	Processors of Cow Hide and Cow Calf.
Splendid Leather Company:	Processors of Cow Hide and Cow Calf.
Good Leather Shoes Private Limited:	Manufacturers of Leather Shoe Uppers and.
Venkat Shoes Private Limited :	Manufacturers of Leather Shoe Uppers.

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 records 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] 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.48.71
UK Pound	1	Rs.72.85
Euro	1	Rs.64.70

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		52

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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