MIRA INFORM REPORT

Report Date :

27.06.2011

IDENTIFICATION DETAILS

Name :	NAAZ EXPORTS PRIVATE LIMITED
Registered Office :	14-A, 150 Feet Road, Jajmau, Kanpur – 208010, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	12.04.2001
Com. Reg. No.:	20-25984
Capital Investment / Paid-up Capital :	Rs.0.100 Million
CIN No.: [Company Identification No.]	U19201UP2001PTC025984
TAN No.: [Tax Deduction & Collection Account No.]	KNPN01159E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Finished Leather, Shoe Upper and Saddlery.
No. of Employees :	350 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 8000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. 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 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Zafar Iqbal
Designation :	Director
Contact No.:	91-9839089055
Date :	17.06.2011

LOCATIONS

Registered Office/ Factory :	14-A, 150 Feet Road, Jajmau, Kanpur – 208010, Uttar Pradesh, India
Tel. No.:	91-512-2462330 / 2462332 / 2362379 (R) / 2373015
Mobile No.:	91-9839089055 (Mr. Zafar Iqbal)
Fax No.:	91-512-2465546 / 2333214
E-Mail :	naazleather@sancharnet.in skshukla@rediffmail.com dcshukla@hotmail.com naazexportinc@gmail.com
Website :	http://www.naazgroup.com http://www.naazexports.com
Area :	6000 sq. yards
Location :	Owned

DIRECTORS

As on : 29.09.2010

Name :	Mr. Javed Iqbal
Designation :	Managing Director
Address :	14-A, 150 Feet Road, Jajmau, Kanpur – 208010, Uttar Pradesh, India
Date of Birth/Age :	06.04.1964
Qualification :	Post – Graduate
Date of Appointment :	12.04.2001
Name :	Mr. Zafar Iqbal
Designation :	Director
Address :	14-A, 150 Feet Road, Jajmau, Kanpur – 208010, Uttar Pradesh, India
Date of Birth/Age :	10.12.1971
Qualification :	Post – Graduate
Date of Appointment :	12.04.2001
Mobile No.:	91-9839089055
Name :	Mr. Rais Iqbal
Designation :	Director
Address :	14-A, 150 Feet Road, Jajmau, Kanpur – 208010, Uttar Pradesh, India
Date of Birth/Age :	26.01.1973
Qualification :	Graduate
Date of Appointment :	12.04.2001
Name :	Mr. Iqbal Hussain
Designation :	Director
Address :	14-A, 150 Feet Road, Jajmau, Kanpur – 208010, Uttar Pradesh, India
Date of Birth/Age :	29.03.1934
Qualification :	Graduate
Date of Appointment :	12.04.2001

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 29.09.2010

Names of Shareholders	No. of Shares
Zafur Iqbal	2500
Rais Iqbal	2500
Hussain Iqbal	2500
Javed Iqbal	2500
Total	10000

As on : 29.09.2010

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Finished Leather, Shoe Upper and Saddlery.
Products :	· Leather : Footwear – upper leather, Saddlery and harness leather, Industrial leather, Split leather Footwear : Sandals, Boots, Safety, Military · Garments and Gloves : Fashion gloves, Industrial gloves · Leather Goods : Small leather goods, Belts, Saddlery and harness · Shoe Uppers · Industrial Shoes · Sandals · Equestrain Product · Leather Sandals · Lightweight Safety Shoes · Finished Leather for Safety Shoes
Exports :
Products :	· Shoe Uppers · Finish Leather · Ladies Sandals
Countries :	· Germany · Spain · Italy · China · Hong Kong
Imports :
Products :	· Chemicals · Shoe Materials
Countries :	· Argentina · Spain · China · Taiwan
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	L/C, Credit

GENERAL INFORMATION

Customers :

· Retailers

· End Users

· Manufacturer

No. of Employees :

350 (Approximately)

Bankers :

· ICICI Bank, Malroad Branch, Kanpur, India

· State Bank of Bikaner and Jaipur, Kaushalpuri Branch, Kanpur, India

· State Bank of India

· HDFC Bank

· Standard Chartered Bank

· State Bank of Saurashtra

· Punjab National Bank

· Bank of India

Facilities :

Particulars	31.03.2010	31.03.2009
Unsecured Loans
From director and share holders	0.500	0.542
Total	0.500	0.542

Banking Relations :	--
Auditors :
Name :	D. C. Shukla and Company Chartered Accountants
Address :	24/56 Clinic Building, Birhana Road, Kanpur – 208001, Uttar Pradesh, India
Telefax :	91-512-2373015
Associates/Subsidiaries :	· Jamiq International Kanpur, India (Saddlery) · Naaz Leathers Finishers

CAPITAL STRUCTURE

As on : 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.10/- each	Rs.1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.10/- each	Rs.0.100 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		0.100	0.100	0.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1.967	1.872	1.726
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2.067	1.972	1.826
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.188
2] Unsecured Loans		0.500	0.543	0.565
TOTAL BORROWING		0.500	0.543	0.753
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2.567	2.515	2.579
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.842	3.229	2.875
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.936	0.895	1.559
	Sundry Debtors	12.496	14.404	27.320
	Cash & Bank Balances	0.487	1.142	0.220
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	27.382	28.500	25.386
Total Current Assets		41.301	44.941	54.485
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	40.788	44.339	52.027
	Other Current Liabilities	0.165	0.781	2.429
	Provisions	0.625	0.541	0.333
Total Current Liabilities		41.578	45.661	54.789
Net Current Assets		(0.277)	(0.720)	(0.304)
MISCELLANEOUS EXPENSES		0.002	0.006	0.008
TOTAL		2.567	2.515	2.579

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	38.346	51.338	62.174
		Other Income
		TOTAL (A)	38.346	51.338	62.174
Less	EXPENSES
		Office Expenses
		Administrative Expenses	37.666	50.483	61.434
		Advertising Expenses
		TOTAL (B)	37.666	50.483	61.434
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.680	0.855	0.740
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.472	0.572	0.487
	PROFIT BEFORE TAX (E-F) (G)		0.208	0.283	0.253
Less	TAX (H)		0.112	0.088	0.078
	PROFIT AFTER TAX (G-H) (I)		0.096	0.195	0.175
	Earnings Per Share (Rs.)		13.98	19.50	--

Particulars	31.03.2011
Sales Turnover (Approximately)	150.000

The above information has been parted by Mr. Zafer Iqbal.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.25	0.55	0.41
Return on Total Assets (PBT/Total Assets}	(%)	0.47	0.59	0.44
Return on Investment (ROI) (PBT/Networth)		0.10	0.14	0.14
Debt Equity Ratio (Total Liability/Networth)		20.35	23.43	30.42
Current Ratio (Current Asset/Current Liability)		0.99	0.98	0.99

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets

· Building

· Machinery

· Generator

· Digital Camera

· Mobile Phone

· Car

· Furniture and Fixture

· Computers

· Xerox Machine

· Air Conditioner

· Building Under Construction

· Dies and Tools

WEBSITE DETAILS:

COMPANY PROFILE:

Subject is specializing in all types of Finished Leather, Shoe Uppers, Industrial Shoes, Sandals and Equestrian Products. Their entire range of products is well in accordance with the standards of international buyers and they make sure them that they provide one of the best and latest chemicals in the industries. Their company has the ability to manufacture a wide variety of finished Shoe Uppers and Sandals.

The quality of products and the reliability of services, they excel in both the areas. They have always delivered the best quality leather items to their clients. The stringent quality measures that they use matched up to the world class and thus make their products such that they can proud of them. They procure various tanneries for the supply of a variety of leathers as per the requirements and trends.

They have become one of the manufacturer and exporter of shoe uppers, Indian leather footwear, lightweight safety shoes, leather sandals and wide range of other leather products. They have carved a niche for their company by keeping commitment of superior quality and timely delivery, all at best competitive prices.

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. 44.94
UK Pound	1	Rs. 71.89
Euro	1	Rs. 64.09

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		32

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.