MIRA INFORM REPORT

Summary Information

		Country	India
Company Name	TREADSTONE LIMITED	Principal Name 1	Mr. Krishan Kumar Wadhwa
Status	Satisfactory	Principal Name 2	Ms. Alka Wadhwa
		Registration #	20-009029
Street Address	39, Factory Area, Fazal Ganj, Kanpur – 208012, Uttar Pradesh, India
Established Date	06.10.1987	SIC Code	--
Telephone#	91-512-2215787-2217691/2234632	Business Style 1	Manufacturer
Fax #	91-512-2215787/2219059	Business Style 2	-
Homepage	http://treadstone-group.com	Product Name 1	Equipment
# of employees	Not Available	Product Name 2	Apparels
Paid up capital	Rs. 13,308,000/-	Product Name 3	--
Shareholders	Directors or relatives of Directors – 100%	Banking	Bank of Baroda
Public Limited Corp.	No	Business Period	23 Years
IPO	No	International Ins.	-
Public Enterprise	No	Rating	Ba (45)
Related Company
Relation	Country	Company Name
-	-	-
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2010		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	175,840,000	Current Liabilities	70,985,000
Inventories	368,096,000	Long-term Liabilities	230,846,000
Fixed Assets	53,643,000	Other Liabilities	39,596,000
Deferred Assets	0,000	Total Liabilities	341,427,000
Invest& other Assets	18,573,000	Retained Earnings	261,417,000
		Net Worth	274,725,000
Total Assets	616,152,000	Total Liab. & Equity	616,152,000
Total Assets (Previous Year)	636,554,000
P/L Statement as of	31.03.2010		(Unit: Indian Rs.)
Sales	312,850,000	Net Profit	20,921,000
Sales(Previous yr)	287,495,000	Net Profit(Prev.yr)	16,843,000

MIRA INFORM REPORT

Report Date :

12.11.2011

IDENTIFICATION DETAILS

Name :	TRADESTONE LIMITED w.e.f 16.08.2001

Formerly Known As :	TRADESTONE (INDIA) PRIVATE LIMITED w.e.f 26.07.2001 LARK EXPORTS PRIVATE LIMITED

Registered Office :	39, Factory Area, Fazal Ganj, Kanpur – 208012, Uttar Pradesh

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	06.10.1987

Com. Reg. No.:	20-009029

Capital Investment / Paid-up Capital :	Rs. 13.308 Millions

CIN No.: [Company Identification No.]	U51210UP1987PLC009029

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Manufacturer of riding equipments and apparels.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 109900

Status :	Satisfactory

Payment Behaviour :	Usually correct

Litigation :	Clear

Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for normal 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 – September 30, 2011

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

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

LOCATIONS

Registered Office/ Head Office :	39, Factory Area, Fazal Ganj, Kanpur – 208012, Uttar Pradesh, India
Tel. No.:	91-512-2215787-2217691/2234632
Fax No.:	91-512-2215787/2219059
E-Mail :	grandint1@sancharnet.in sarvesh_srifcs@yahoo.co.in grand@treadstone-group.com grandin1@sanchamet.in shoe@treadstone-group.com accounts@treadstone-group.com
Website :	http://treadstone-group.com

Marketing Office/ Construction Division :	A-259-260, Okhla Industrial Area, Phase – l, New Delhi – 110020, India
Tel. No.:	91-11-26812539/26812714/26812709/26815815
Fax No.:	91-11-26812540
E-Mail :	info@treadstone-group.com treadworld@tradestone-group.com

DIRECTORS

As on 30.09.2010

Name :

Mr. Krishan Kumar Wadhwa

Designation :

Managing Director

Address :

C-33, Sarvodaya Nagar, Kanpur – 208005, Uttar Pradesh, India

Date of Birth/Age :

17.10.1957

Date of Appointment :

06.10.1987

DIN No.:

00170731

Other Directorship :

S.No.	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
1	U51210UP1987PLC009029	Treadstone Limited	Managing director	01-04-08	06-10-87	-	Active	NO
2	U19122UP1989PLC011484	Treadstone International Limited	Managing director	18-12-89	18-12-89	-	Active	NO
3	U67120UP1992PTC014458	Chubby Holdings Private Limited	Managing director	15-06-92	15-06-92	-	Active	NO
4	U67120UP1992PTC014457	Treadstone India Private Limited	Managing director	15-06-92	15-06-92	-	Active	NO
5	U18209UP2002PTC027122	Treadstone Equipments Private Limited	Managing director	16-12-02	16-12-02	-	Active	NO
6	U45201UP2005PTC030648	Skyline Habitats Private Limited	Managing director	19-09-05	19-09-05	-	Active	NO
7	U45201UP2005PTC030664	Rachnalok Housing Constructions Private Limited	Managing director	23-09-05	23-09-05	-	Active	NO
8	U45201UP2005PTC030676	Treadstone Hospitality Private Limited	Managing director	27-09-05	27-09-05	-	Active	NO

Name :

Ms. Alka Wadhwa

Designation :

Director

Address :

C-33, Sarvodaya Nagar, Kanpur – 208005, Uttar Pradesh, India

Date of Birth/Age :

06.08.1960

Date of Appointment :

06.10.1987

DIN No.:

00189265

Other Directorship :

S.No.	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
1	U51210UP1987PLC009029	Treadstone Limited	Director	06-10-87	06-10-87	-	Active	NO
2	U19122UP1989PLC011484	Treadstone International Limited	Director	18-12-89	18-12-89	-	Active	NO
3	U67120UP1992PTC014458	Chubby Holdings Private Limited	Director	15-06-92	15-06-92	-	Active	NO
4	U67120UP1992PTC014457	Treadstone India Private Limited	Director	15-06-92	15-06-92	-	Active	NO
5	U18209UP2002PTC027122	Treadstone Equipments Private Limited	Director	16-12-02	16-12-02	-	Active	NO
6	U45201UP2005PTC030648	Skyline Habitats Private Limited	Director	19-09-05	19-09-05	-	Active	NO
7	U45201UP2005PTC030664	Rachnalok Housing Constructions Private Limited	Director	23-09-05	23-09-05	-	Active	NO
8	U45201UP2005PTC030676	Treadstone Hospitality Private Limited	Director	27-09-05	27-09-05	-	Active	NO

Name :

Ms. Nidhi Wadhwa

Designation :

Director

Address :

C-33, Sarvodaya Nagar, Kanpur – 208005, Uttar Pradesh, India

Date of Birth/Age :

26.02.1981

Date of Appointment :

20.02.2009

DIN No.:

01847743

Other Directorship :

S.No.	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
1	U19123UP2003PTC027386	Treadstone Equestrian Private Limited	Director	30-01-04	30-01-04	-	Active	NO
2	U19122UP1989PLC011484	Treadstone International Limited	Director	30-07-08	30-07-08	-	Active	NO
3	U51210UP1987PLC009029	Treadstone Limited	Director	20-02-09	20-02-09	-	Active	NO
4	U45201UP2005PTC030676	Treadstone Hospitality Private Limited	Additional director	25-07-09	25-07-09	-	Active	NO
5	U45201UP2005PTC030664	Rachnalok Housing Constructions Private Limited	Additional director	17-07-10	17-07-10	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders		No. of Shares
Krishan Kumar Wadhwa		8600
Savitri Wadhwa		99810
Alka Wadhwa		10440
Nidhi Wadhwa		1200
Priyanka Wadhwa		1200
Uditi Wadhwa		1200
O.P. Wadhwa		10630
TOTAL		133080

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of riding equipments and apparels.

Products :	Tannery Saddlery Products Riding Boots Garments Rugs Protection Equipments

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Bank of Baroda, Fazal Ganj, Kanpur – 208012, Uttar Pradesh, India
State Bank of India, Smeccc Branch, Zonal office, Kanpur – 208001, Uttar Pradesh, India
Axis Bank Limited
ICICI Bank
Punjab National Bank
Standard Charted Bank
SBI Bank
Deutsche Postbank Home Finance Limited, B-6/7, Community Centre, Safdurjung Enclave, Opposite Deer Park, New Delhi – 110029, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
(Secured against Hypothecation of stocks)
Bank of Baroda DL-A/c. 61	0.000	49.039
Bank of Baroda (FBP) A/c.	8.524	14.136
Bank of Baroda - 00620700000002	42.343	38.090
Demand Loan From BOB-LAD-502 (Secured against hypothecation of other movable assets)	0.000	23.349
Deutsche Post Bank Home Finance Limited	24.335	0.000
Bank of Baroda Car Loan A/c. No. 595	1.060	1.334
S.B.I. (GT Road Branch) OD-30260495923	37.145	38.639
Bank of Baroda C/A No.00620200000195	1.836	0.000
Axis Bank Limited	45.002	50.000
Axis Bank Limited OD A/c.	19.263	10.538
ICICI HFC Limited	17.799	18.406
Moneyline Credit Limit	0.000	52.117
Religare Finvest Limited Car Loan	32.937	0.000
Tata Motors Finance Limited (Car loan)	0.061	0.143
Total	230.305	295.791
Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Alka Wadhwa	0.000	0.801
Cholamandalam DBS Finance limited	0.541	1.043
Total	0.541	1.844

Banking Relations :	--

Financial Intuition :	Cholamandalam DBS Finance limited

Auditors :
Name :	Gupta Janardan and Associates Chartered Accountant
Address :	Flat No. G-3, Prabhu Rachna Apartment, 13/386-D, Civil Lines, Kanpur – 208001, Uttar Pradesh, India
Tel. No.:	91-512-2533220/2561888
E-Mail :	cajanardan@rediffmail.com
PAN.:	AADFG2645J

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
150000	Equity Share	Rs.100/- each	Rs.15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
133080	Equity Share	Rs.100/- each	Rs.13.308 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		13.308	13.308	13.308
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		261.417	240.495	223.652
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		274.725	253.803	236.96
LOAN FUNDS
1] Secured Loans		230.305	295.791	284.707
2] Unsecured Loans		0.541	1.844	63.328
TOTAL BORROWING		230.846	297.635	348.035
DEFERRED TAX LIABILITIES		5.503	5.227	4.890

TOTAL		511.074	556.665	589.885

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		53.643	52.786	45.899
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		18.557	8.567	6.085
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	368.096	389.987	402.767
	Sundry Debtors	71.047	89.263	101.190
	Cash & Bank Balances	3.725	29.000	28.091
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	101.068	66.919	81.644
Total Current Assets		543.936	575.169	613.692
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	70.985	41.413	31.984
	Other Current Liabilities and Provisions	34.093	38.476	48.086
Total Current Liabilities		105.078	79.889	80.070
Net Current Assets		438.858	495.280	533.622

MISCELLANEOUS EXPENSES		0.016	0.032	4.279

TOTAL		511.074	556.665	589.885

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	312.850	287.495	342.748
		Other Income	37.058	22.900	12.303
		TOTAL (A)	349.908	310.395	355.051

Less	EXPENSES
		Raw Material Consumed	106.914	90.004	82.504
		Manufacturing, Administrative, Selling and Distribution Expenses	132.996	119.785	102.821
		Shop construction Cost	53.663	73.100	174.803
		Interest on Secured Loan	0.714	0.723	0.000
		Miscellaneous Expenditure Written Off	0.016	0.016	0.016
		Increase/ Decrease in Stock	(19.552)	(25.892)	(35.487)
		TOTAL (B)	274.751	257.736	324.657

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		75.157	52.659	30.394

Less	FINANCIAL EXPENSES (D)		39.542	29.010	8.607

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		35.615	23.649	21.787

Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.165	2.986	2.743

	PROFIT BEFORE TAX (E-F) (G)		32.450	20.663	19.044

Less	TAX (H)		11.529	3.820	7.189

	PROFIT AFTER TAX (G-H) (I)		20.921	16.843	11.855

Less	APPROPRIATIONS
		Transfer to General Reserve	20.921	16.843	11.855

	EARNINGS IN FOREIGN CURRENCY
		Exports of Goods	263.652	226.413	170.264

	VALUE OF IMPORTS ON CIF BASIS		5.779	10.287	14.570

	Earnings Per Share (Rs.)		157.21	126.56	89.09

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	5.98	5.43	3.34

Net Profit Margin (PBT/Sales)	(%)	10.37	7.19	5.56

Return on Total Assets (PBT/Total Assets}	(%)	5.43	3.29	2.89

Return on Investment (ROI) (PBT/Networth)		0.12	0.08	0.08

Debt Equity Ratio (Total Liability/Networth)		1.22	1.81	1.38

Current Ratio (Current Asset/Current Liability)		5.18	7.66	4.89

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

During the year the company achieved a turnover of Rs.312.849 millions as against Rs.267.495 millions in the previous year. The company has earned a net profit of Rs. 32.450 millions during the year. Barring unforeseen circumstances, the director are confident of a satisfactory performance during the current year.

FORM 8:

Corporate identity number of the company	U51210UP1987PLC009029
Name of the company	TREADSTONE LIMITED
Address of the registered office or of the principal place of business in India of the company	39, Factory Area, Fazal Ganj, Kanpur – 208012, Uttar Pradesh, India Email : accounts@treadstone-group.com
This form is for	Creation of charge
Type of charge	Immovable Property Movable Property (not being pledge)
Particular of charge holder	Bank of Baroda, Fazal Ganj, Kanpur – 208012, Uttar Pradesh, India Email : arunsidhant@gmail.com
Nature of instrument creating charge	Corporate Guarantee Agreement LDOC 33 (A)
Date of instrument Creating the charge	29.07.2011
Amount secured by the charge	Rs. 91.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest : As per agreement Terms of Repayment : As per agreement Margin: As per agreement Extent and operation of the charge : As per agreement
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All raw material, stock in process, finished goods, etc. Plot no 52/3 block T scheme no1, Fazalganj, Kanpur Plot no 52/4 block T scheme no1, Fazalganj, Kanpur Plot no 52/5 block T scheme no1, Fazalganj, Kanpur Plot no 52/13 block T scheme no1, Fazalganj, Kanpur Plot no 52/14 block T scheme no1, Fazalganj, Kanpur

FIXED ASSETS:

Freehold Land
Factory Building
Vehicles
Furniture and Fixture
Office Equipment
Computers
Laptop
Electric Installation
Tools, Dies and Patterns
Trade mark
Air Conditioner
Generators
Plant and Machinery

WEB DETAILS

COMPANY PROFILE:

Subject is India’s largest manufacturer of high quality, most innovative riding equipments and apparels. The company has a sizeable presence in the markets of Europe, Canada, United States, Australia and New Zealand

Subject understands the need for performance and practicality. It keeps pace with the changing trends and buyer preferences. All designs are constantly evaluated and updated keeping in mind the changing needs of riders. With its multi-locational manufacturing facilities, the company today manufactures a comprehensive range of equestrian products utilizing latest technology and machinery.

They, at Tread stone, have always developed innovative products & have been able to attain growth of 20 % year after year .

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.49.78
UK Pound	1	Rs.80.10
Euro	1	Rs.68.82

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		45

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.

MIRA INFORM REPORT

368.096

389.987

71.047

89.263

3.725

29.000

0.000

0.000

101.068

66.919

543.936

70.985

41.413

34.093

38.476

105.078

438.858

495.280

5.98

10.37

7.19

5.43

3.29

0.12

1.22

5.18

Unit