MIRA INFORM REPORT

Report Date :

10.04.2012

IDENTIFICATION DETAILS

Name :	I A LEATHER (INDIA) PRIVATE LIMITED
Registered Office :	14/19 H Civil Lines, Kanpur – 208001, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	15.02.1994
Com. Reg. No.:	20-016117
Capital Investment / Paid-up Capital :	Rs.10.589 Millions
CIN No.: [Company Identification No.]	U19201UP1994PTC016117
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Leather Footwear, Leather Goods, Leather Saddlery and Riding Equipment, Leather Pet Products (Collars and Leads of Dogs Cats).
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 124000
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 small to mediocre 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	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 :	14/19 H Civil Lines, Kanpur – 208001, Uttar Pradesh, India
Tel. No.:	91-512-2530078/ 2539275
Fax No.:	91-512-26150066/ 26150077
E-Mail :	maassociate@gmail.com email@ialeather.com

DIRECTORS

(AS ON 30.09.2011)

Name :	Mr. Shadab Ahmad
Designation :	Director
Address :	14/19 H Civil Lines, Kanpur – 208001, Uttar Pradesh, India
Date of Birth/Age :	01.03.1972
Date of Appointment :	15.02.1994
DIN No.:	01881860
Name :	Mr. Ehithsham Ahmad
Designation :	Director
Address :	14/35, Civil Lines, Kanpur, Uttar Pradesh, India
Date of Birth/Age :	02.09.1970
Date of Appointment :	15.02.1994
DIN No.:	01881922
Name :	Mr. Ishtiyaq Ahmad
Designation :	Director
Address :	14/35, Civil Lines, Kanpur, Uttar Pradesh, India
Date of Birth/Age :	02.11.1946
Date of Appointment :	15.02.1994
DIN No.:	01881948
Name :	Mr. Naushad Ahmad
Designation :	Director
Address :	14/19 H Civil Lines, Kanpur – 208001, Uttar Pradesh, India
Date of Birth/Age :	03.12.1974
Date of Appointment :	15.02.1994
DIN No.:	03580395
Name :	Mr. Shahnawaz Ahmad
Designation :	Director
Address :	14/19 H Civil Lines, Kanpur – 208001, Uttar Pradesh, India
Date of Birth/Age :	27.07.1976
Date of Appointment :	15.08.1994
DIN No.:	03581235

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Shares
Ishtiyaq Ahmad	311040
Ehithsham Ahmad	186970
Shadab Ahmad	186970
Shahnawaz Ahmad	186970
Naushad Ahmad	186970
Total	1058920

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Leather Footwear, Leather Goods, Leather Saddlery and Riding Equipment, Leather Pet Products (Collars and Leads of Dogs Cats).

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Canara Bank

Overseas Branch, Civil Lines, Kanpur – 208001, Uttar Pradesh, India

· HDFC Bank Limited

· Punjab National Bank

· State Bank of India

· Bank of India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Canara Bank FBP A/c		46.858
Canara Bank PC Loan		34.980
HDFC Bank Limited(ICICI Bank) Maruti 800		0.050
HDFC Car Loan (Innova)		0.072
Kotak Mahindra Prime Limited (Beat Car)	37.204	0.360
Kotak Mahindra Prime Limited (Swift Desire)		0.221
Magma Fincorp Limited 10		0.089
Magma Fincorp Limited (Versa)		0.130
Term Loan A/c		2.756
Total	37.204	85.516

Banking Relations :	--
Auditors :
Name :	M A Associates Chartered Accountant
Address :	14/73 Civil Lines, Kanpur – 208011, Uttar Pradesh, India
PAN No.:	AADFM1464B

CAPITAL STRUCTURE

(AS ON 30.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
1100000	Equity Share	Rs.10/- each	Rs.11.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1058920	Equity Share	Rs.10/- each	Rs.10.589 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		10.589	10.589	10.589
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		20.365	16.582	14.829
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		30.954	27.171	25.418
LOAN FUNDS
1] Secured Loans		37.204	85.516	156.664
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		37.204	85.516	156.664
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		68.158	112.687	182.082
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		48.255	49.390	50.575
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.042	0.042	0.042
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	10.530	11.225	15.227
	Sundry Debtors	67.329	78.372	132.533
	Cash & Bank Balances	3.955	6.561	6.722
	Other Current Assets	4.785	2.096	0.788
	Loans & Advances	21.044	18.817	13.544
Total Current Assets		107.643	117.071	168.814
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor and Other Current Liabilities	79.028	47.428	32.838
	Provisions	8.754	6.388	4.511
Total Current Liabilities		87.782	53.816	37.349
Net Current Assets		19.861	63.255	131.465
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		68.158	112.687	182.082

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2011	31.03.2010	31.03.2009
Turnover	349.600	263.200	223.200
NET PROFIT	4.683	2.632	2.162

KEY RATIOS

PARTICULARS	31.03.2011	31.03.2010	31.03.2009
Debt Equity Ratio (Total Liability/Networth)	4.04	5.13	7.63
Current Ratio (Current Asset/Current Liability)	1.23	2.18	4.52

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	Yes
No. of Employees	No
Name of Person Contacted	No
Designation of Contact person	No
Turnover of Firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-----
Estimation for coming financial year	No
Capital in the business	Yes
Details of sister concerns	No
Major Suppliers	No
Major Customers	No
Payments Terms	No
Export/ Imports Details (If applicable)	No
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	Yes
Incorporation details is applicable	Yes
Last Accounts filed at ROC	Yes
Major Shareholders, if available	Yes

BUSINESS ACTIVITIES

This year was an inspiring year for the company, as its recorded excellent performance on all major financial parameters. It attained turnover of Rs.349.600 Millions as compared to that of Rs.229.200 Millions in the previous year and net profit of Rs.4.683 Millions as compared to that of Rs.2.632 Millions in the previous year. The company achieved this inspite of significant cost increase pressure.

FORM 8:

Corporate identity number of the company	U19201UP1994PTC016117
Name of the company	I A LEATHER (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	14/19 H Civil Lines, Kanpur, Uttar Pradesh, India maassociate@gmail.com
This form is for	Modification of charge
Charge identification number of the modified	90274513
Type of charge	Immovable property Book Debts Movable Property Floating Charge
Particular of charge holder	Canara Bank Overseas Branch, Civil Lines, Kanpur – 208001, Uttar Pradesh, India jkscoknp@gmail.com
Nature of description of the instrument creating or modifying the charge	Supplemental Common Hypothecation Agreement
Date of instrument Creating the charge	26/12/2011
Amount secured by the charge	Rs.112.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest @ Base Rate + 0.50%, presently 11.25% p.a. floating with monthly rests or at such other rate(s) as may be notified by the Bank to the Borrower from time to time. Terms of Repayment Working Capital- Repayable on demand. Margin 25% on PC and FLC/ILC. Nil on FDB/FBE. Extent and Operation of the charge The Company's movable and immovable properties as mentioned hereunder(As per column 15) are hypothecated and mortgaged to secure Fund Based Working Capital and Non Fund Based Limits aggregating to Rs.112.000 Millions granted by the Bank to the Borrower.
Short particulars of the property charged	Hypothecation of stock of raw material, work in process and finished goods book debts, plant and machinery of the Borrower situated at Borrower's premises/factory or wherever else or in transit. Equitable mortgage of Company's immovable property situated at 14/18, Civil Lines, Kanpur area 426.07 square meters. Equitable mortgage of immovable property situated at 1292, Wajidpur, Jajmau, Kanpur in the name of Mr.Ahmad Shahnawaj and Mr. Naushad Ahmed area 717.24 square meters. Equitable mortgage of immovable property situated at Plot No.4 Wajidpur, Jajmau, Kanpur in the name of Ahmed Shadab area 307.40 square meters. Equitable mortgage of Company's immovable property situated at Plot No.3 Wajidpur, Jajmau, Kanpur in the name of Mr. Ahmad Ehtisham area 307.40 square meters.
Date of latest modification prior to the present modification	28/09/2007
Particulars of the present modification	The aggregate amount of FBWC and NFB limits granted by the Bank has now been modified upto Rs.112.000 Millions. Therefore, total amount of charge secured against hypothecation of raw material, work in process and finished goods etc. of movable assets and immovable properties as per details mentioned in column No.15 above has now been modified to Rs.112.000 Millions.

FIXED ASSETS:

· Factory Building

· Machinery

· Furniture and Fixture

· Fax Machine

· Computer

· Refrigerator

· Motor Cycle

· Scooter

· Generator

· Tools

· Dies and Jigs

· Building

· Xerox Machine

· Land

· Telephone and Mobile Phone

· Fire Extinguisher

· Office Equipment

· Air Conditioner

· Vehicles

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.51.05
UK Pound	1	Rs.81.09
Euro	1	Rs.67.39

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.