MIRA INFORM REPORT

Report Date :

17.09.2011

IDENTIFICATION DETAILS

Name :	CFC CREATIVE LEATHER FINISHES PRIVATE LIMITED
Registered Office :	2/19, Alingikulam Village, Devasthanam Post, Vaniyambadi - 635 751, Vellore District, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	17.10.2005
Com. Reg. No.:	18-57823
Capital Investment / Paid-up Capital :	Rs.0.400 million
CIN No.: [Company Identification No.]	U51496TN2005PTC057823
TAN No.: [Tax Deduction & Collection Account No.]	CHEC06018F / CHEC08086B
PAN No.: [Permanent Account No.]	AACCC7140C
Legal Form :	Private Limited Liability Company
Line of Business :	Dealer in Tanning Chemicals
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 3500
Status :	Small Company
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a small company in its field. Its scale of activities are limited. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. 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

LOCATIONS

Registered Office :	2/19, Alingikulam Village, Devasthanam Post, Vaniyambadi - 635 751, Vellore District, Tamilnadu, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	pariauditchennai@gmail.com

DIRECTORS

As on 29.09.2010

Name :

Mr. Selvaraj Ramu

Designation :

Director

Address :

No. 20, Jayalakshmi Nagar, Vak Nagar Extension, Arni – 632 301, Tamilnadu, India

Date of Birth/Age :

02.06.1972

Date of Appointment :

17.10.2005

DIN No.:

01790440

Name :

Mr. N Jayachandran

Designation :

Director

Address :

No. 2/19, Alingikulam Village, Devasthanam Post, Vaniyambadi - 635 754, Tamilnadu, India

Date of Birth/Age :

10.07.1967

Date of Appointment :

17.10.2005

Name :

Mr. Narayanaswamy Venkatesan

Designation :

Director

Address :

No. 2/19, Alingikulam Village, Devasthanam Post, Vaniyambadi - 635 754, Tamilnadu, India

Date of Birth/Age :

03.08.1974

Date of Appointment :

17.10.2005

DIN No.:

01757491

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24297TN2004PTC054053	Perfect Finishing Chemicals Private Limited	Director	25-08-04	25-08-04	Active	NO
2	U51496TN2005PTC057823	CFC Creative Leather Finishes Private Limited	Director	17-10-05	17-10-05	Active	NO
3	U51496TN2005PTC057824	Creative Leather Finishing Company Private Limited	Director	17-10-05	17-10-05	Active	NO
4	U24113TN2007PTC062406	Goodwill Tanning Tech Private Limited	Director	17-02-07	17-02-07	Active	NO

Name :

Mr. Karuppiah Saravanan

Designation :

Director

Address :

No.1-83, Siva Yoga Valli Nagar, Rangigem, Pudukkottai District, Tamilnadu, India

Date of Birth/Age :

14.04.1975

Date of Appointment :

17.10.2005

DIN No.:

01808058

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	U51496TN2005PTC057824	Creative Leather Finishing Company Private Limited	Director	17-10-05	17-10-05	-	Active	NO
2	U51496TN2005PTC057823	CFC Creative Leather Finishes Private Limited	Director	17-10-05	17-10-05	18-05-10	Active	NO

KEY EXECUTIVES

Name :	Mr. P Selvam
Designation :	Manager
Address :	Chennai, India

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2010

Names of Shareholders	No. of Shares
Selvaraj Ramu	1800
N Jayachandran	1800
Narayanaswamy Venkatesan	200
K Saravanan	200
Total	4000

As on 29.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Dealer in Tanning Chemicals

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Not Available

Facilities :

Unsecured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
Advance from members and others	3.546	3.615
Total	3.546	3.615

Banking Relations :	--
Auditors :
Name :	V Krishnan and Company Chartered Accountant
Address :	No. 208, C S M Castle, Llyods Road, Royapettah, Chennai – 600 014, Tamilnadu, India

CAPITAL STRUCTURE

As on 29.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
5000	Equity Shares	Rs.100/- each	Rs.0.500 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4000	Equity Shares	Rs.100/- each	Rs.0.400 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		0.400	0.400	0.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.478	0.203	0.103
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		0.878	0.603	0.503
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.090
2] Unsecured Loans		3.546	3.615	1.326
TOTAL BORROWING		3.546	3.615	1.416
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		4.424	4.218	1.919
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.238	0.314	0.416
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.040	0.035	0.026
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.311	0.196	0.103
	Sundry Debtors	6.552	6.040	6.937
	Cash & Bank Balances	0.282	0.084	0.410
	Other Current Assets	0.572	0.647	0.676
	Loans & Advances	0.000	0.000	0.000
Total Current Assets		7.717	6.967	8.126
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3.444	2.990	6.495
	Other Current Liabilities	0.019	0.012	0.057
	Provisions	0.122	0.112	0.116
Total Current Liabilities		3.585	3.114	6.668
Net Current Assets		4.132	3.853	1.458
MISCELLANEOUS EXPENSES		0.014	0.016	0.019
TOTAL		4.424	4.218	1.919

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales – Tanning Chemicals	10.618	9.099	13.747
		Miscellaneous Income	0.000	0.000	0.000
		TOTAL (A)	10.618	9.099	13.747
Less	EXPENSES
		Cost of goods sold	8.645	7.780	12.023
		Personnel Expenses	0.530	0.315	0.677
		Rent, Insurance and Taxes	0.063	0.053	0.054
		Repairs and maintenance	0.157	0.074	0.098
		Selling Expenses	0.256	0.014	0.041
		Other Expenses	0.304	0.096	0.173
		Preliminary Expenses w/o	0.002	0.002	0.002
		Directors Remuneration	0.180	0.440	0.303
		TOTAL (B)	10.137	8.774	13.371
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		0.481	0.325	0.376
Less	FINANCE CHARGES (D)		0.035	0.028	0.036
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.446	0.297	0.340
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.076	0.101	0.137
	PROFIT BEFORE TAX (E-F) (G)		0.370	0.196	0.203
Less	TAX (H)		0.095	0.096	0.108
	PROFIT AFTER TAX (G-H) (I)		0.275	0.100	0.095
	Earnings Per Share (Rs.)		68.75	--	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.59	1.10	0.69
Net Profit Margin (PBT/Sales)	(%)	3.48	2.15	1.48
Return on Total Assets (PBT/Total Assets}	(%)	4.65	2.69	2.38
Return on Investment (ROI) (PBT/Networth)		0.42	0.33	0.40
Debt Equity Ratio (Total Liability/Networth)		8.12	11.16	16.07
Current Ratio (Current Asset/Current Liability)		2.15	2.24	1.22

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL RESULTS

This company has achieved a turnover of Rs.10.618 millions with a net Profit of Rs.0.275 million during the year as against the turnover of Rs.9.099 millions with a net profit of Rs.0.100 million in the immediate preceding year 2008-09.

FIXED ASSETS

· Office Equipments

· Furniture and Fixtures

· Computer a/c

· Vehicle

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.47.47
UK Pound	1	Rs.74.96
Euro	1	Rs.65.79

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--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		27

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.