MIRA INFORM REPORT

Report Date :

06.12.2011

IDENTIFICATION DETAILS

Name :	VENUS FOOTWEAR COMPANY PRIVATE LIMITED
Registered Office :	G – 218 – 223, Industrial Area, Neem Ka Thana – 332713, Rajasthan
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.07.1990
Com. Reg. No.:	17-005474
Capital Investment / Paid-up Capital :	Rs.13.506 Millions
CIN No.: [Company Identification No.]	U19201RJ1990PTC005474
TAN No.: [Tax Deduction & Collection Account No.]	JPRV02739C
PAN No.: [Permanent Account No.]	AABCV1951D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Exclusive Shoes.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 220000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. Profitability of the company is under pressure. However, Trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some cautions.

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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	G – 218 – 223, Industrial Area, Neem Ka Thana – 332713, Rajasthan, India
Tel. No.:	Not Available
Fax No.:	91-1574-232010
E-Mail :	gg.mca@rediffmail.com venusfootwearco@yahoo.com ashish@venusfootarts.com

DIRECTORS

As on 30.09.2011

Name :

Mr. Vaibhav Banka

Designation :

Director

Address :

W. No. 2, Shahpura Road, Neem Ka Thana, Sikar – 332713, Rajasthan, India

Date of Birth/Age :

22.11.1988

Date of Appointment :

16.01.2008

DIN No.:

01993933

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U19201RJ1990PTC005474	Venus Footwear Company Private Limited	Director	30/09/2008	16/01/2008	-	Active	NO

Name :

Mr. Shashi Gupta

Designation :

Director

Address :

252, Yadav Kanloni, Nimkathana Ward No. 7, Sikar – 332713, Rajasthan, India

Date of Birth/Age :

15.06.1965

Date of Appointment :

30.09.2011

DIN No.:

03505876

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U19201RJ1990PTC005474	Venus Footwear Company Private Limited	Director	30/09/2011	1/04/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
RajkumarAgarwal	83000
Snehlata Aganual	50000
Subhash Chand Banka	76000
Delta Merchandise Private Limited	50000
Kokila Export Private Limited	60000
Raj Laxmi Tradecom Private Limited	50000
One 2 E Solutions India Private Limited	20000
Rajshree Mangal Property Private Limited	72000
Success Tie-Up Private Limited	80000
Smriti Realtech Private Limited	50000
Vaibhav Banka	60000
Albatros Share Registry Private Limited	30000
Kathleen Vyapm Private Limited	60000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Bodies corporate	63.09
Directors or relatives of Directors	20.86
Other top fifty shareholders	16.05
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Exclusive Shoes.
Products :	Footwear

PRODUCTION STATUS

Particulars	Unit	31.03.2011
Licensed Capacity	Pairs	N. A.
Installed Capacity	Pairs	1360000
Actual Production	Pairs	340463

GENERAL INFORMATION

Suppliers As on 31.03.2010 :

· Baba Shoe Company

· V. K. Enterprises

· Victor Corporation Jaipur

· Bhoomi Industries Limited

· Sharma Printers

· Ravi Transport Company

· Gupta Garg and Company

· The Secretary Rubber Board Kottyam

· Lovely Enterprises Faridabad

· Taj Enterprises Sonipat

· Vacouro Leather (India) Private Limited, Noida

Customers As on 31.03.2010 :

· Vandana Footwear

· Winner Sports Private Limited

· Hypercity

No. of Employees :

Not Available

Bankers :

· ICICI Bank Limited, Ramleela Maidan, Neemkathana, Neemkathana – 332713, Rajasthan, India

· The Bank of Rajasthan Limited, Ramleela Maisan, Neem Ka Thana, Neem Ka Thana – 332713, Rajasthan, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Term Loan
From ICICI Bank (Old Name BOR Limited) NKT	10.683	10.862
Cash Credit
From ICICI Bank (Old Name BOR Limited) NKT	3.369	0.000
Total	14.052	10.862
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Directors	5.139	0.000
From Others	0.071	0.000
Total	5.210	0.000

Notes :

1. Term Loan is secured by hypothecation of Land and Building and Plant and Machinery of the Company and further secured by way of collateral security on Industrial Plot of RIICO situated at F-1, 218 to 223, Industrial Area, Neem Ka Thana - (Sikar)

2. Cash Credit is secured by hypothecation of Inventories (Raw Material, SIP, Finished Goods) and Book debts of the Company and further secured by way of collateral security on Industrial plot of RIICO situated at G – 1, 218 to 223, Industrial Area, Neem Ka Thana - (Sikar)

Banking Relations :	--
Auditors :
Name :	Gupta Garg and Company Chartered Accountants
Address :	H – 1/35, Ram Vihar Building, 2^nd Floor, Opposite G.P.O.M.I Road, Jaipur – 302001, Rajasthan, India
Tel. No.:	91-141-2371432/2361466
Mobile No.:	91-9828012935/9414048949
Res No.:	91-141-2392645/2632907
Fax No.:	91-141-2377976
PAN.:	AAAFG8508R

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs.15.000 Millions

Issued & Subscribed Capital :

No. of Shares	Type	Value	Amount
1410600	Equity Shares	Rs.10/- each	Rs.14.106 Millions

Fully-Paid-Up & Partly Paid-Up Share Capital :

No. of Shares	Type	Value	Amount
1290600	Equity Shares	Rs.10/- each	Rs.12.906 Millions
120000		Rs.5/- each	Rs.0.600 Million
	Total		Rs.13.506 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		13.506	6.906	1.586
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		41.800	15.400	0.120
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		55.306	22.306	1.706
LOAN FUNDS
1] Secured Loans		14.052	10.862	0.000
2] Unsecured Loans		5.210	0.000	0.000
TOTAL BORROWING		19.262	10.862	0.000
DEFERRED TAX LIABILITIES		1.538	0.926	0.000
TOTAL		76.106	34.094	1.706
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		42.828	33.074	7.494
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.003	0.003	0.003
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	24.929	4.666	0.000
	Sundry Debtors	12.236	0.862	0.000
	Cash & Bank Balances	0.664	0.251	2.978
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.954	2.455	0.190
Total Current Assets		38.783	8.234	3.168
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	11.272	8.900	0.155
	Other Current Liabilities	0.202	0.009	9.102
	Provisions	2.157	0.118	0.000
Total Current Liabilities		13.631	9.027	9.257
Net Current Assets		25.152	(0.793)	(6.089)
MISCELLANEOUS EXPENSES		8.123	1.810	0.298
TOTAL		76.106	34.094	1.706

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	50.547	0.843	NA
		Other Income	9.530	0.052
		TOTAL	60.077	0.895	NA
Less	EXPENSES
		Office Expenses	59.850	0.854	NA
		Administrative Expenses
		Advertising Expenses
		Financial Expenses
		TOTAL
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		0.227	0.041
Less/ Add	DEPRECIATION/ AMORTISATION		5.433	0.146
	PROFIT/ (LOSS) BEFORE TAX		(5.660)	(0.105)	NA
Less	TAX		0.000	0.000	NA
	PROFIT/(LOSS) AFTER TAX (G-H)		(5.660)	(0.105)	NA
	BALANCE CARRIED TO THE B/S		(5.660)	(0.105)	NA
	Earnings Per Share (Rs.)		4.01	0.16	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	9.42	11.73	NA
Net Profit Margin (PBT/Sales)	(%)	(11.19)	(12.45)	NA
Return on Total Assets (PBT/Total Assets}	(%)	(6.94)	(0.25)	NA
Return on Investment (ROI) (PBT/Networth)		(0.10)	(0.01)	NA
Debt Equity Ratio (Total Liability/Networth)		0.59	0.89	5.42
Current Ratio (Current Asset/Current Liability)		2.84	0.91	0.34

LOCAL AGENCY FURTHER INFORMATION

FORM 8

Corporate identity number of the company	U19201RJ1990PTC005474
Name of the company	VENUS FOOTWEAR COMPANY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	G – 218 – 223, Industrial Area, Neem Ka Thana – 332713, Rajasthan, India Email Id : ggc.mca@rediffmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10204768
Type of charge	Immovable property Book debts Movable property (not being pledge) Stock
Particular of charge holder	ICICI Bank Limited, Ramleela Maidan, Neemkathana, Neemkathana – 332713, Rajasthan, India Email Id : ghanshyam.shar@icicibank.com
Nature of instrument creating charge	1.Deed of hypothecation (wef) dated 08.03.2011 2. Letter of contitnuity dated 08.03.2011
Date of instrument Creating the charge	08.03.2011
Amount secured by the charge	Rs.8.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 5.50% above ibase rate i.e 13.75% p.a at present with monthly rest Terms of repayment Yearly review Margin 30% on stock 50% on book debts Extent and operation of the charge Upto Rs.8.500 Millions Others Other terms and conditions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of stocks of raw material, goods in process, semi finished and finished goods, consumable stores and spares and other movables. hypothecationof book debts Plot No. 218 to 223 Riico Industrial Area, Neemkathana
Particulars of the present modification	The limit for cash credit has been increased from Rs.2.400 Millions to 8.500 Millions

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Furniture and Fixtures

· Commercial Equipments

· Computer Equipment

· Fire Fighting Equipments

· Moulds and Dyes

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.51.39
UK Pound	1	Rs.80.20
Euro	1	Rs.68.92

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	2
--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
TOTAL		28

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.