MIRA INFORM REPORT

Report Date :

18.05.2011

IDENTIFICATION DETAILS

Name :	ALTHAF SHOES PRIVATE LIMITED
Registered Office :	‘Anugraha’ Apartments, C Block, 1 A, First Floor, No.19, Nungambakkam High Road, Chennai - 600 034, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	07.12.1992
Com. Reg. No.:	18-23973
Capital Investment / Paid-up Capital :	Rs.5.710 Millions
CIN No.: [Company Identification No.]	U18209TN1992PTC023973
TAN No.: [Tax Deduction & Collection Account No.]	CHEA01424D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Exporters of Leather Shoe Uppers, Leather Full Shoes, Finished Leather and Footwear Components.
No. of Employees :	455 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (66)

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 981000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having fine track. Financial position of the company appears to be sound. However, trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

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

LOCATIONS

Registered / Corporate Office :	Anugraha Apartments, C Block, 1 A, First Floor, No.19, Nungambakkam High Road, Chennai - 600 034, Tamilnadu, India
Tel. No.:	91-44-28259562 / 28232186 / 28202092/ 26272527
Fax No.:	91-44-28258806 / 26273051
E-Mail :	altshoes@giasmd01.vsnl.net.in althafnh@vsnl.net
Area :	3000 Sq. ft
Location :	Owned
Factory 1 :	395/1 and 396/5, Pazhanjur Village, Sembrapakkam Post - 602 117, Tamilnadu
Tel No. :	91-44-25323984
Factory 2 :	No. 64, Komeshwaram, MC Road, Ambur - 635 802, North Arcot Dist. Tamilnadu
Factory 3 :	Sriperupudur, Chinglepet District, Tamilnadu
Branch Office :	14, Letnags Road, Chennai – 600 084, Tamilnadu, India
Tel No.:	91-44-26610710

DIRECTORS

 As on 30.09.2010

Name :	Mr. Ayyapillai Althaf Ahmed
Designation :	Managing Director
Address :	43, Ritherdon Road, Vepery, Chennai - 400 007, Tamilnadu, India
Date of Birth/Age :	07.02.1952
Date of Appointment :	07.12.1992
DIN No.:	00225399
Name :	Mrs. Natamkar Nishath Mahal
Designation :	Whole Time Director (Wife of Mr. A. Pillai Althaf Ahmed)
Address :	43, Ritherdon Road, Vepery, Chennai – 400 007, Tamilnadu, India
Date of Birth/Age :	23.09.1958
Date of Appointment :	07.12.1992
DIN No.:	00225407
Name :	Mr. Ayyapillai Sidhra Fathima
Designation :	Whole Time Director
Address :	43, Ritherdon Road, Vepery, Chennai – 400 007, Tamilnadu, India
Date of Birth/Age :	15.07.1977
Date of Appointment :	01.06.1998
DIN No.:	00225412
Name :	Mrs. Ayyapillai Sameera Fathima
Designation :	Whole Time Director
Address :	43, Ritherdon Road, Vepery, Chennai - 400 007, Tamilnadu, India
Date of Birth/Age :	09.12.1978
Date of Appointment :	23.08.1999
DIN No.:	00225445
Name :	Mr. Ayyapillai Sabah Fathima
Designation :	Director
Address :	43, Ritherdon Road, Vepery, Chennai – 400 007, Tamilnadu, India
Date of Birth/Age :	21.02.1982
Date of Appointment :	01.12.2000
DIN No.:	00225454

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
A Althaf Ahmed	2755
N Nishath Mahal	2655
A Sidhra Fathima	100
A Smeera Fathima	100
A Sabah Fathima	100
Total	5710

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage of Holding
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Leather Shoe Uppers, Leather Full Shoes, Finished Leather and Footwear Components.

Products :

Product Description	Item Code No
Leather Shoes Shoe uppers and Products	0204

GENERAL INFORMATION

No. of Employees :

455 (Approximately)

Bankers :

State Bank of India, Leather International Branch, M V J Towers, P H Road, Chennai – 600 010, Tamilnadu, India

Facilities :

Secured Loans	As on 31.03.2010 Rs. In Millions	As on 31.03.2009 Rs. In Millions
From State Bank of India
Term Loan	0.000	7.817
Packing Credit	77.821	65.212
Standby Line Credit	18.076	20.093
From Non Banking Financial Companies
Hire Purchase Loans	2.060	1.000
Total	97.957	94.123

Banking Relations :	--
Financial Institution :	Sundaram Finance Limited, No. 21, Patullos Road, Chennai – 600002, Tamilnadu, India
Auditors :
Name :	D. Sampathkumar and Company Chartered Accountants
Address :	New No. 5, South Boag Road, T. Nagar, Chennai – 600017, Tamilnadu, India
PAN.:	AAAFD2288D
Associates :	Vistas Shoes Rumana Leather Company ARS Footwear Athena Shoes

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
7000	Equity Shares	Rs.1000/- each	Rs.7.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5710	Equity Shares	Rs.1000/- each	Rs.5.710 Millions

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		5.710	5.710	5.710
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		239.726	196.700	161.518
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		245.436	202.410	167.228
LOAN FUNDS
1] Secured Loans		97.957	94.123	93.688
2] Unsecured Loans		0.000	0.000	21.510
TOTAL BORROWING		97.957	94.123	115.198
DEFERRED TAX LIABILITIES		7.480	7.727	12.727
TOTAL		350.873	304.260	295.153
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		267.921	240.511	206.201
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.190	0.190	1.276
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	80.503	93.142	75.881
	Sundry Debtors	146.031	75.424	109.293
	Cash & Bank Balances	95.364	46.703	36.824
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	61.365	46.936	62.067
Total Current Assets		383.263	262.205	284.065
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	259.022	161.034	140.883
	Other Liabilities	1.933	9.104	0.000
	Provisions	39.546	28.508	55.506
Total Current Liabilities		300.501	198.646	196.389
Net Current Assets		82.762	63.559	87.676
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		350.873	304.260	295.153

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1268.738	1420.736	1297.514
		Other Income	145.059	145.249	119.257
		TOTAL	1413.797	1565.985	1416.771
Less	EXPENSES
		TOTAL	1294.616	1479.381	1355.049
	PROFIT BEFORE TAX		119.181	86.604	61.722
Less	TAX		42.754	24.701	35.873
	PROFIT AFTER TAX		76.427	61.903	25.849
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		175.700	145.517	151.390
Less	APPROPRIATIONS
		Transfer to General Reserve	7.658	5.000	5.000
		Proposed Dividend	28.550	22.840	22.840
		Tax on Dividend	4.852	3.880	3.882
	BALANCE CARRIED TO THE B/S		211.067	175.700	145.517
	EARNINGS IN FOREIGN CURRENCY
		Export of goods on FOB basis	1242.284	1401.090	1290.023
	TOTAL EARNINGS		1242.284	1401.090	1290.023
	IMPORTS
		Leather and Consumable Shoe Materials	484.182	747.328	605.445
		Capital Goods	22.145	29.877	24.897
	TOTAL IMPORTS		506.327	777.205	630.342
	Earnings Per Share (Rs.)		13385	10841	4527

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	5.40	3.95	1.82
Net Profit Margin (PBT/Sales)	(%)	9.39	6.09	4.76
Return on Total Assets (PBT/Total Assets}	(%)	18.30	17.23	12.59
Return on Investment (ROI) (PBT/Networth)		0.48	0.42	0.37
Debt Equity Ratio (Total Liability/Networth)		1.62	1.45	1.86
Current Ratio (Current Asset/Current Liability)		1.27	1.32	1.45

LOCAL AGENCY FURTHER INFORMATION

Operations:

Due to Recession, the performance of the Company has undergone reduction in sales. Even than, the company has compensated by reduction in costs and was able to maintain good profit.

Form 8:

Corporate identity number of the company

U18209TN1992PTC023973

Name of the company

ALTHAF SHOES PRIVATE LIMITED

Address of the registered office or of the principal place of business in India of the company

Anugraha Apartments, C Block, 1 A, First Floor, No.19, Nungambakkam High Road, Chennai - 600 034, Tamilnadu, India

This form is for

Modification of charge

Charge identification (ID) number of the charge to be modified

90282683

Type of charge

Immovable Property

Book Debts

Movable Property

Others (Hypothecation)

Particular of charge holder

State Bank of India, Leather International Branch, M V J Towers, P H Road, Chennai – 600 010, Tamilnadu, India

Nature of instrument creating charge

1. Supplemental Agreement of Loan Increase in the overall limit (Form C.1-A).

2. Supplemental Agreement of Hypothecation of Goods and Assets for increase in the overall limit (Form C.2-A).

3. Letter regarding the grant of individual limits within the overall limit (Form C.5).

4. EM Letters (2 Nos) all dated 29th March 2010 with respect to Two properties belonging to the company and Two personal properties were delivered to State Bank of India, Kilpauk, Chennai - 600010.

Date of instrument Creating the charge

29.03.2010

Amount secured by the charge

Rs. 143.500 Millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of Interest

Rate of interest on the Term Loan is 1.00% over SBAR, present effective rate 12.75% p.a.

Terms of Repayment

The Term Loan of Rs.17.500 Millions Repayable in 34 installments.

Period (Monthly)	No.of Installment	Installment Amount (in Millions)	Total Amount (in Millions)
Jan2010- Mar 2010	3	5150.000	1.500
Apr2010- Mar2011	12	5150.000	6.200
Apr2011- Mar2012	12	5150.000	6.200
Apr2012- Oct 2012	7	5150.000	3.600

Margin

Raw Materials - 25%

Stock-in-Process - 25%

Finished Goods - 25%

LG / BG - 10%

Extent and Operation of the charge

Raw Materials - 25%

Stock-in-Process - 25%

Finished Goods - 25%

LG / BG - 10%

Others

v EPC - Rs.70.000 Millions

v FDB (Non LC) - Rs.10.000 Millions

v Term Loan - Rs.17.500 Millions (New)

v Letter of Credit - Rs.10.000 Millions

v Bank Guarantee - Rs.5.000 Millions (sub limit)

v Stand by Limit - Rs.18.000 Millions

v Forward Contract - Rs.8.000 Millions

v FDB (LC) - Rs.10.000 Millions

v Total - Rs.143.500 Millions

Short particulars of the property or asset(s) charged (including complete address and location of the property)

v Term Loan - Hypothecation of machinery purchased / to be purchased out of bank finance.

v Equitable Mortgage of deposit of title deeds of company's immovable properties details given below:-

v 1) EM over land measuring 4.96 acres and factory building thereon comprised in S.No.396/1B, 396/3C,

v 396/5, 395/1, 396/1B situated at 395, Pazhanjur Road of Pazhanjur village, Poonamallee Taluk. belonging to the company.

v 2) EM over 3.06 acres of land and factory building at S.No.22/1, 23/1, 24/1, 24/2, 25/1, 26/2/A of 63 Somalapuram Village, Vaniyambadi Taluk, Ambur, Vellore Dist belonging to the company.

v 3) EM over land measuring 4.93 acres and factory building at S.F.No.76/1, 73/2, 77, 78, 79 Komeswaram Village situated at 64, Madras Calicut Road,

v Komeswaram, Ambur, Vellore Dist belonging to Shri.Althaf Ahmed.

v 4) (i) EM over land measuring 33 cents on Punja S.No.396/3B

v (ii) Land comprised in Punja S.No/396/3C measuring 33 cents on all 66 cents both situated at No.100 at Mevalur Kuppam (B) Palanjur Village,

v Sriperumbudur Taluk, Chengelpet, Ann Dist measuring and situated within Sub Registration Dist of Poonamallee and Registration Dist Thiruvallur.

Date of instrument modifying the charge

17.11.2006

Particulars of the present modification

By the present Modification,

The various credit facilities enjoyed by the company now has been reduced to Rs.143.500 Millions. Details of property charged as per column no.15.

Fixed Assets:

· Land

· Building

· Plant and Machinery

· Electrical Installation

· Vehicles

· Furniture and Fixtures

· Office Equipments

· Computers

· Air conditioners

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 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.45.07
UK Pound	1	Rs.72.97
Euro	1	Rs.63.57

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--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	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		64

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
-	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.