1. Summary Information

		Country	India
Company Name	B.B.K. Leathers Private Limited	Principal Name 1	Mr. Narayansamy Baskaran
Status	Satisfactory	Principal Name 2	Mr. Porselvi Baskaran
		Registration #	18-026136
Street Address	Plot No. 41, SIPCOT Industrial Estate, Ranipet – 632403, Tamilnadu, India
Established Date	02.11.1993	SIC Code	--
Telephone#	91-4172-244491/ 92	Business Style 1	Manufacturer
Fax #	91-4172-244593	Business Style 2	Retailer
Homepage	--	Product Name 1	Leather Goods
# of employees	Not Available	Product Name 2	Accessories
Paid up capital	Rs.9,000,0000/-	Product Name 3	Garments
Shareholders	Directors or relatives of directors – 100%	Banking	State Bank of India
Public Limited Corp.	No	Business Period	18 years
IPO	No	International Ins.	--
Public Enterprise	No	Rating	Ba (45)
Related Company
Relation	Country	Company Name	CEO
Associates	--	Ram Leather	--
Note	--

2. Summary Financial Statement

Balance Sheet as of	31.03.2010		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	112,695,000	Current Liabilities	60,856,000
Inventories	59,591,000	Long-term Liabilities	88,437,000
Fixed Assets	88,686,000	Other Liabilities	8,518,000
Deferred Assets	239,000	Total Liabilities	157,811,000
Invest& other Assets	0,000,000	Retained Earnings	84,400,000
		Net Worth	103,400,000
Total Assets	261,211,000	Total Liab. & Equity	261,211,000
Total Assets (Previous Year)	261,484,000
P/L Statement as of	31.03.2010		(Unit: Indian Rs.)
Sales (Including Other Income)	561,295,000	Net Profit	2,132,000
Sales(Previous yr) (Including Other Income)	558,593,000	Net Profit(Prev.yr)	11,019,000

MIRA INFORM REPORT

Report Date :

28.09.2011

IDENTIFICATION DETAILS

Name :	B.B.K. LEATHERS PRIVATE LIMITED
Registered Office :	Plot No. 41, SIPCOT Industrial Estate, Ranipet – 632403, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	02.11.1993
Com. Reg. No.:	18-026136
Capital Investment / Paid-up Capital :	Rs.9.000 Millions
CIN No.: [Company Identification No.]	U18209TN1993PTC026136
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Retailer of Leather Goods, Accessories and Garments etc.
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 400000
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 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 :	Plot No. 41, SIPCOT Industrial Estate, Ranipet – 632403, Tamilnadu, India
Tel. No.:	91-4172-244491/ 92
Mobile No.:	91-9443755000 (Mr. Narayansamy Baskaran) 91-9443244492 (Mr. Baskaran Porselvi)
Fax No.:	91-4172-244593
E-Mail :	bbkleather@yahoo.co baskaran@bbkshoes.com barath@bbkshoes.com
Factory 1 :	42B, Sipcot Industrial Complex, Ranipet-632403, Tamilnadu, India
Factory 2 :	152, SIDCO Industrial Estate, Ranipet-632403, Tamilnadu, India

DIRECTORS

(AS ON 30.09.2010)

Name :

Mr. Narayansamy Baskaran

Designation :

Managing Director

Address :

N-Baskaran 70, Vanapadi Road, Ranipet, Velore-632402, Tamilandu, India

Date of Birth/Age :

12.09.1956

Date of Appointment :

02.11.1993

DIN No.:

02063363

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	U18209TN1993PTC026136	B.B.K. LEATHERS PRIVATE LIMITED	Managing director	02/11/1993	02/11/1993	Active	NO
2	U18209TN1993PTC025493	ROYALE LEATHER EXPORTS PRIVATE LIMITED	Managing director	09/01/1995	09/01/1995	Active	NO

Name :

Mr. Porselvi Baskaran

Designation :

Director

Address :

B-Porselvi 70, Vanapadi Road, Ranipet-632402, Tamilnadu, India

Date of Appointment :

02.11.1993

DIN No.:

02077949

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	U18209TN1993PTC026136	B.B.K. LEATHERS PRIVATE LIMITED	Director	02/11/1993	02/11/1993	Active	NO
2	U18209TN1993PTC025493	ROYALE LEATHER EXPORTS PRIVATE LIMITED	Director	17/04/1996	17/04/1996	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2010)

Names of Shareholders	No. of Shares
Narayanasamy Baskaran	175000
Baskaran Prselvi	675000
Baskaran – HUF	50000
Total	900000

(AS ON 30.09.2010)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Retailer of Leather Goods, Accessories and Garments etc.

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity
Leather	Pairs per day	NA	6000

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India,

Commercial Branch, Walajpet – 632513, Tamilnadu, India

· Indian Bank

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
State Bank of India, commercial Branch, Walajapet
Term Loan	25.908	0.000
(Secured against hypothecation of all Plant and Machinery, Land and Building of the company)
Letter of Credit – Import A/C	14.978	53.227
Foreign bill Negotiation – Non LC	10.095	11.329
Export Packing Credit A/C	37.456	23.362
(Secured against the hypothecation of Stocks of RM, WIP, consumables, stores, semi Finished and Finished Stocks and Other inventory which forms part of the finished product, book debts both present and feature, Bank deposits other current assets and Second charge on all immovable and movable assets of the company.)
Total	88.437	87.918

Banking Relations :	--
Auditors :
Name :	Kalyansundaram and Company Chartered Accountant
Address :	H. O. 18, Lake Area Second Street, Nungambakkam, Chennai – 600034, Tamilnadu, India
Tel. No.:	91-44-28172873/ 28175393
Associates/Subsidiaries :	· Ram Leather · Royale Leather Private Limited · Royal Leather Exports Private Limited · Vivek Leathers · BBK Exports

CAPITAL STRUCTURE

(AS ON 31.03.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
900000	Equity Shares	Rs.10/- each	Rs.9.000 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		9.000	9.000	9.000
2] Share Application Money		10.000	10.000	0.000
3] Reserves & Surplus		84.400	80.656	69.232
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		103.400	99.656	78.232
LOAN FUNDS
1] Secured Loans		88.437	87.918	63.619
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		88.437	87.918	63.619
DEFERRED TAX LIABILITIES		0.000	0.000	0.893
TOTAL		191.837	187.574	142.744
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		88.686	101.587	55.810
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	8.917
DEFERREX TAX ASSETS		0.239	0.539	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	59.591	69.381	41.806
	Sundry Debtors	64.534	49.223	41.934
	Cash & Bank Balances	2.907	2.847	0.761
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	45.254	37.907	40.544
Total Current Assets		172.286	159.358	125.045
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	60.856	67.090	40.218
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	8.518	6.820	6.810
Total Current Liabilities		69.374	73.910	47.028
Net Current Assets		102.912	85.448	78.017
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		191.837	187.574	142.744

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		TOTAL	561.295	558.593	493.527
Less	EXPENSES
		TOTAL	533.332	534.867	474.641
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		27.963	23.726	18.886
Less/ Add	DEPRECIATION/ AMORTISATION		14.223	11.994	8.630
	PROFIT BEFORE TAX		13.740	11.732	10.256
Less	TAX		11.608	0.713	3.413
	PROFIT AFTER TAX		2.132	11.019	6.843
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	560.258	556.407	485.296
	TOTAL EARNINGS		560.258	556.407	485.296
	IMPORTS
		Leather Import	73.088	127.051	141.549
		Consumable	45.140	26.852	19.992
	TOTAL IMPORTS		118.228	153.903	161.541
	Earnings Per Share (Rs.)		2.37	12.24	7.60

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.38	1.97	1.39
Return on Total Assets (PBT/Total Assets}	(%)	5.26	4.50	5.67
Return on Investment (ROI) (PBT/Networth)		0.13	0.12	0.13
Debt Equity Ratio (Total Liability/Networth)		1.53	1.62	1.41
Current Ratio (Current Asset/Current Liability)		2.48	2.16	2.66

LOCAL AGENCY FURTHER INFORMATION

FUTURE PROSPECTS

The directors are confident that the company is expected to do well in the current year as well as in the years to come.

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	90294018
Corporate identity number of the company	U18209TN1993PTC026136
Name of the company	B.B.K. LEATHERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 41, SIPCOT Industrial Estate, Ranipet-632403, Tamilnadu, India bbkleather@yahoo.co
Type of charge	Immovable Property Others : Stocks, Raw Materials, Finished Goods
Particular of charge holder	State Bank of India, Commercial Branch, Walajpet-632513, Tamilnadu, India Venkat.sridhar@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Agreement of Loan – Cum – Hypothecation Link Letter Letter of Confirmation for extension of mortgage by deposit of title deeds Letter of Arrangements All dated 25.04.2011
Date of instrument Creating the charge	25.04.2011
Amount secured by the charge	Rs.186.700 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest EPC – 0.5% below base rate. Presently effective rate 7.75 % SLC – 0.5% below base rate. FDBN (Non LC) – 0.5% below base rate Terms of Repayment As per the Agreement Margin 25% Extent and Operation of the charge Hypothecation of Raw Materials, finished goods, Stock in process, Machineries involved in Manufacturing. Extension of Mortgaged by deposit of title deeds covering enhanced limits.
Short particulars of the property charged	Hypothecation of Raw Materials, finished goods, Stock in process, Machineries involved in Manufacturing. Extension of Mortgaged by deposit of title deeds covering enhanced limits on factory, land and building in Plot No. 42B SIPCOT Industrial Estate, Ranipet, Vellore District.
Particulars of the present moditification.	The over all limits have increased to Rs.186.700 Millions.

Name of the company	B.B.K. LEATHERS PRIVATE LIMITED
Presented By	Mr. N Baskaran
1) Date and description of instrument creating the change	30.12.2002 1. Guarantee Agreement for Small Industrial Advances (Working Capital Finance) 2. Guarantee Agreement for Small Industrial Advances (Term Loan)
2) Amount secured by the charge/amount owing on the securities of charge	Rs.38.500 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Charge on the properties of the company
4) Gist of the terms and conditions and extent and operation of the charge.	Vacant site and Vacant site at Karai villae Ranipet, Walaja Tauka, House Property Plot No. 9, Door No. 127, Hasthinapuram Chennai No. 19/9A, Vanapadi Road, Ranipet Charge shall be continuing one, till such time all sums due by the borrower and as per the under taken by the Guarantor in the Guarnatee Agreement
5) Name and Address and description of the person entitled to the charge.	State Bank of India, Commercial Branch, Walajpet-632513, Tamilnadu, India
6) Date and brief description of instrument modifying the charge	NA
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	NA

FIXED ASSETS:

· Plant and Machinery

· Furniture and Fixtures

· Electrical Installations

· Cars

· Bus

· Van

· Office Equipments

· Electrical Items

· Computer and Software Equipments

· Land

· Building

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.49.18
UK Pound	1	Rs.76.65
Euro	1	Rs.66.63

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	YES
--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.