MIRA INFORM REPORT

Report Date :

15.09.2008

IDENTIFICATION DETAILS

Name :	FLORIND SHOES PRIVATE LIMITED
Registered Office :	29,College Road ,Chennai – 600006,Tamil Nadu.
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	04.09.1978
Com. Reg. No.:	007590
CIN No.: [Company Identification No.]	U19201TN1978PTC007590
TAN No.: [Tax Deduction & Collection Account No.]	CHEF00081E
PAN No.: [Permanent Account No.]	AAACF0490J
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Leather Footwear.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 2472065
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company havings fine track. Trade relations are fair.Business is active. General financial position is good. Payments are reported as usually correct and as per commitments. The company can be considered good for normal business dealings.

INFORMATION PARTED BY

Name :	Mr.K.Anand
Designation :	Finance Manager
Date :	12.09.2008

LOCATIONS

Registered Office :	29,College Road ,Madras – 600006,Tamil Nadu,India
Tel. No.:	91-44-28231104
Fax No.:	91-44-28231934
E-Mail :	corporate@kargrp.com
Website :	www.kargrp.com
Area :	20000 sq.fts.
Location :	Owned
Factory :	M. C. Road, Solur Village, Ambur, Pin – 635 802, Vellore District, Tamilnadu, INDIA
Tel. No.:	91-4174-249003/4
Branches :	Located at:- · Chennai, Tamilnadu · Ambur, Tamilnadu
Export Office /Depot	31, Maddox Street, Choolai, Chennai – 600 112, Tamilnadu, INDIA

DIRECTORS

Name :	Mr. Akmal Mohamad Kandrikar
Designation :	Joint Managing Director
Address :	3, Anderson Road, Chennai - 600 006, Tamilnadu
Date of Birth :	14.05.1975
Date of Appointment :	21.03.1996
Name :	Mr.Kandrikar Shahid Mansoar
Designation :	Managing Director
Address :	2A,Anderson Road,Chennai – 600006,Tamil Nadu,India
Date of Birth:	08.07.1970
Date of Appointment :	12.09.1990
Name :	Mrs. Begum Mohamadi Thadey
Designation :	Director
Address :	5/3,Anderson Road,Chnnai – 600006,Tamil Nadu,India
Date of Birth :	29.04.1951
Date of Appointment :	11.01.2002
Name :	Mr.K.Mohamed Akmal
Designation :	Whole-time Director
Address :	2B,Anderson Road,Chennai-600006,Tamil Nadu,India
Date of Birth :	14.05.1975
Date of Appointment :	21.03.1996
Name :	Mr. Mansoor Shahid Kandrikar
Designation :	Managing Director
Address :	3, Anderson Road, Chennai - 600 006, Tamilnadu
Date of Birth :	08.07.1970
Date of Appointment :	12.09.1990

KEY EXECUTIVES

Name :	Mr. Rahman Ameenur Kandrikar
Designation :	Chairman
Address :	2, Anderson Road, Chennai - 600 006, Tamilnadu
Date of Birth :	04.07.1941
Name :	Mr. Suresh Chella Krishnamoorthy
Designation :	Secretary
Date of Birth/Age :	19.03.1954

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As per Company Records)

Names of Shareholders	No. of Shares
Mr. Rahman Ameenur Kandrikar	95000
Mrs. Begum Mohamadi Thadey	95000
Mr. Mashkura Thadey	95000
Mr. Mansoor Shahid Kandrikar	95000
Mrs. Fathima Thaseen Kandrikar	75000
Mr. Maryam Lubna Kandrikar	75000
Mr. Akmal Mohamed Kandrikar	95000
Mr. Anmed Ehsan Kandrikar	95000
Mrs.Naaz Fatima	95000
Mr.Asfia S	95000
Mr.Ahmed Shafeeq N	45000
Mr.Rahnab Hafeezur Kandrikar	45000
Total	1000000

EQUITY SHARE BREAKUP (PERCENTAGE OF TOTAL EQUITY)

(As on 31.03.2007)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Leather Footwear.
Exports :
Countries :	v USA
Imports :
Countries :	China USA
Terms :
Selling :	L/C , Credit
Purchasing :	L/C, Credit

GENERAL INFORMATION

Customers :	Wholesalers
No. of Employees :	850 (in office 50 + 800 in factory)
Bankers :	State Bank of India Leathers International Branch MUJ Towers, Poonamallee High Road, Kilpauk, Chennai – 600 010, Tamilnadu American Express Bank Limited
Facilities:	Export Limit Rs.110.000 millions Import L/C Limit Rs. 20.000 millions (non-funded)

Banking Relations :	Satisfactory
Auditors :
Name :	Mr.B.Kalyanasundaram Chartered Accountant
Address :	18(Old No.22)Second Cross Street,Lake Area,Nungambakkam,Chennai-600034,India
	C. K. Kalyanasundaram & Company Chartered Accountants
Address :	22, Lake Area, 2^nd Street, Nungambakkam, Chennai – 600 034, Tamilnadu, INDIA
Subsidiaries :	United India Shoe Corporation Private Limited Cin No.U19201TN2001PTC048053 Floram Shoes (India)Private Limited Cin No:U18209TN1987PTC014898 Florind Uppers Private Limited Cin No:U199116TN2006PTC059768 United India Shoe Uppers Private Limited Cin No:U19116TN2006PTC059764

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.100/-each	Rs.100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.100/-each	Rs.100.000millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		100.000	100.000	100.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		394.413	393.498	390.795
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		494.413	493.498	490.795
LOAN FUNDS
1] Secured Loans		1.300	9.800	16.600
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		1.300	9.800	16.600
DEFERRED TAX LIABILITIES		11.155	12.504	11.311
TOTAL		506.868	515.802	518.706
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		92.758	103.368	108.854
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		124.144	120.010	120.010
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	570.622	518.232	360.574
	Sundry Debtors	227.962	153.740	107.627
	Cash & Bank Balances	25.083	9.531	8.623
	Other Current Assets	26.554	62.268	32.851
	Loans & Advances	96.833	103.676	98.399
Total Current Assets		947.054	847.447	608.074
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	657.274	563.845	331.880
	Provisions	8.274	3.868	3.272
Total Current Liabilities		665.548	567.713	335.152
Net Current Assets		281.506	279.734	272.922
MISCELLANEOUS EXPENSES		8.460	12.690	16.920
TOTAL		506.868	515.802	518.706

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		1484.492	1465.036	1100.925
Other Income		70.430	67.632	56.075
Total Income		1554.922	1532.668	1157.000
Profit/(Loss) Before Tax		3.973	4.491	4.588
Provision for Taxation		3.058	1.788	0.224
Profit/(Loss) After Tax		0.915	2.703	4.364
Imports Value		250.542	256.600	278.412
Export Value		1322.003	1331.972	981.020
Expenditures :
	Financial Charges	29.876	19.786	15.409
	Depreciation & Amortization	14.998	16.674	17.947
	Other Expenditure	1506.075	1491.717	1119.056
Total Expenditure		1550.949	1528.177	1152.412

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	0.05	0.17	0.37
Net Profit Margin (PBT/Sales)	(%)	0.26	0.30	0.41
Return on Total Assets (PBT/Total Assets}	(%)	0.34	0.41	0.54
Return on Investment (ROI) (PBT/Networth)		0.008	0.009	0.009
Debt Equity Ratio (Total Liability/Networth)		1.34	1.17	0.71
Current Ratio (Current Asset/Current Liability)		1.42	1.49	1.81

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

Name of the company

FLORIND SHOES PRIVATE LIMITED

Presented By

Mr.K.Shahid Mansoor,

Managing Director

1) Date and description of instrument creating the change

Deed of Hypothecation dated 16.10.1986 with State Bank of India,Overseas Branch, Madras 600 001.

2) Amount secured by the charge/amount owing on the securities of charge

Cash and Credit Limit of Rs.4.500 millions

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

Secured by Hypothecation of the whole of the movable machineries belonging to the company including plant, implements, tools.fittings.equipments and all other like Articles and things belonging to the company.

4) Gist of the terms and conditions and extent and operation of the charge.

Margin: 25%

Interest at the rate of 0.50% above SBAR with minimum of 14.50%per annum.

5) Name and Address and description of the person entitled to the charge.

State Bank of India

Leather and International Branch, Kilpauk, Chennai-600010.

6) Date and brief description of instrument modifying the charge

a) From C.1-A (Supplemental Agreement of Loan for increase in the Overall Limit ) Dated – 24.11.2005

b) Form C.2-A(Supplemental Agreement of Hypothecation of Goods and Assets for increase in the Overall Limit) Dated – 24.11.2005

c) Form C.3-A (Supplemental Agreement of Pledge of Goods and Assets for increase in the Overall Limit) Dated – 24.11.2005

d) From C.5(Letter regarding the grant of individual Limits within the overall limit) Dated – 24.11.2005

e) Letter Evidencing Extension of Equitable Mortgage by deposit of title deeds on 24.11.2005

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.

Now modification is effected enhancing the credit Limits from the present Rs.370.000 millions to Rs.470.000 millions on 24^th November 2005

Rs,In Millions

Nature of facility	Existing Limits	Revised Limits
Adhoc (Non-Lc) Limit	-	100.000
Export Packing Credit	100.000	100.000
Foreign Doc.Bill Limits (Non Lc)	100.000	100.000
Foreign Doc.Bill Limits ( Lc)	40.000	40.000
Stand –by Line of Credit	40.000	40.000
Corporate Loan	20.000	20.000
Letter of Credit	30.000	30.000
Bank Guarantee	40.000	40.000
Total	370.000	470.000

Besides the securities so far offered,the overall limit of Rs.470.000 millions is collaterally secured by extension of equitable mortgage by way of deposit of title deeds on the company’s property of Land and building at Solur Village, Vaniyambadi Taluk in the following Survey Nos;

S.No.	Extent
104/1A	1.88 Acres
119	0.81 Acres
104/1E	1.89 Acres
103/1	1.70 Acres
103/2	1.34 Acres

This form is for	Modification of charge
Charge identification number of the modified	90287171
Corporate identity number of the company	U19201TN1978PTC007590
Name of the company	FLORIND SHOES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	29,College Road ,Madras – 600006,Tamil Nadu,India
Type of charge	Book Debts and Movable Property (not being pledge)
Particular of charge holder	State Bank of India Leather and International Branch (MID Corporate GRP) ,MVJ Towers,177/1,P.H.Road, Kilpauk,Chennai-600010,Tamil Nadu,India Email:dgm07024@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Letter regarding the grant of individual limits within the overall limit-Form C.5 Supplemental Agreement of loan for increase in the overall limit-Form C.1-A Supplemental Agreement of Hypothecation of goods and assets for increase in the overall limit-Form C.2A EM-Deposit of title deeds.
Date of instrument Creating the charge	14.03.2007
Amount secured by the charge	Rs.520.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	a) Rate of Interest As per clause 3 of the SANCTION LETTER duly accepted –Copy enclosed b) Terms of Repayment Repayable on demand. Facility is available for a period of 36 months that is up to 11.02.2010 subject to the review based on FFR c) Margin EPC/Raw Materials/SIP/FG – 25% LC/BG – 5% d) Extent and operation of the charge EPC- Hypothecation of stocks of raw materials, SIP, FG, consumables, store, spares backed by EO. FDB/LC=Documents of title to goods and charges on current assets – plus collateral as per the Security clause in sanction letter duly accepted. EM over factory land and building at Ambur in the name of the company and in the name of Floram Shoes (India) Private Limited.
Short particulars of the property charged	EPC- Hypothecation of stocks of raw materials, SIP, FG, consumables, store, spares backed by EO. FDB/LC=Documents of title to goods and charges on current assets. BG/Stand by limit-Extension of charge on current assets-plus collateral as per the Security clause in sanction letter duly accepted. EM over factory land and building at Ambur in the name of the company and in the name of Floram Shoes (India) Private Limited
Date of latest modification prior to the present modification	24.11.2005
Particulars of the present modification	The overall limit enhanced from Rs.470.000 millions to Rs.520.000 millions, as per details given in the Board Resolution and duly accepted

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.45.94
UK Pound	1	Rs.82.84
Euro	1	Rs.65.95

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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	YES
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		66

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.	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