MIRA INFORM REPORT

PRELIMINARY REPORT

Report Date :

10.04.2012

IDENTIFICATION DETAILS

Name :	PACIFIC LEATHER PRIVATE LIMITED
Registered Office :	197/ 189, Ramrai Sarai Jajmau, Kanpur – 208 010, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	18.10.1994
Com. Reg. No.:	20-017053
CIN No.: [Company Identification No.]	U19123UP1994PTC017053
TAN No.: [Tax Deduction & Collection Account No.]	KNPP00253B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Leather and Leather Products.

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 109000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The management has not filed the financials of the company with the government departments since 2007. However trade relations are reported as fair. Business is active. Payments are reported to be slow. 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

INFORMATION PARTED BY

Name :	Mr. Vajhad
Designation :	Accounts
Date :	09.10.2010

LOCATIONS

Registered Office :	197/ 189, Ramrai Sarai Jajmau, Kanpur – 208 010, Uttar Pradesh, India
Tel. No.:	91-512-2461103/ 2461206/ 2461086/ 2464101
Fax No.:	91-512-2461082
E-Mail :	info@pacificleather.in
Website :	www.pacificleather.in
Area :	3000 sq ft
Location :	Owned
Head Office :	198-200, Gajju Purwa, Asharfabad, Jajmau, Kanpur – 208 010, Uttar Pradesh, India
Tel. No.:	91-512-2461086/ 2464101
E-Mail :	info@pacificleather.in
Area :	6000 sq ft
Location :	Owned

DIRECTORS

As on 29.09.2007

Name :	Mr. Saghir Ahmad
Designation :	Managing Director
Address :	105-D, Defence Colony, Jajmau, Kanpur – 208 010, Uttar Pradesh, India
Date of Birth/Age :	01.07.1956
Date of Appointment :	18.10.1994
Name :	Mr. Mushir Alam
Designation :	Director
Address :	490-D, Defence Colony, Jajmau, Kanpur – 208 010, Uttar Pradesh, India
Date of Birth/Age :	01.07.1957
Date of Appointment :	18.10.1994
Name :	Mr. Azhar Hassan
Designation :	Director
Address :	105-D, Defence Colony, Jajmau, Kanpur – 208 010, Uttar Pradesh, India
Date of Birth/Age :	10.05.1960
Date of Appointment :	01.10.1996
Name :	Mr. Safeer Alam
Designation :	Director
Address :	490-D, Defence Colony, Jajmau, Kanpur – 208 010, Uttar Pradesh, India
Date of Birth/Age :	29.09.1969
Date of Appointment :	01.10.1996
Name :	Mr. Shabbir Ahmad
Designation :	Director
Address :	490-D, Defence Colony, Jajmau, Kanpur – 208 010, Uttar Pradesh, India
Date of Birth/Age :	05.01.1948
Date of Appointment :	15.10.1997

KEY EXECUTIVES

Name :	Mr. Vajhad
Designation :	Accounts

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2007

Names of Shareholders	No. of Shares
Saghir Ahmad	107600
Mushir Alam	110100
Vaasya Capital and Finance Limited, India	50000
Saffer Alam	110000
Shabbir Ahmad	110000
Azhar Hassan	105500
Parveen Khatton	4500
Firdose Fatima	5500
Noor Jahan	4500
Ishtiaq Ahmad	10000
Sayeeda Khatoon	4500
Mohammed Taufeeq	6000
Soheb Ahmad	4300
Ashfaq Ahmad	7500
Zaibun Nisa	5000
Mohammed Ashraf	13700
Meraj Ahmad	50000
Sartaz Ahmad	25000
Izhar Ahmad	20000
Shakeela Begum	13000
Aijaj Ahmad	24000
Muzzfar Hassan Lari	4300
Nadeem Akhtar	3000
Kahkashan Shamim	25000
Total	823000

As on 29.09.2007

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	6.08
Directors or relatives of directors	93.92
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Leather and Leather Products.
Exports :
Products :	Leather and Leather Products
Countries :	Malaysia, Australia, Germany, Korea, China
Imports :
Products :	Raw Materials
Countries :	Germany, Italy, France
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	L/C, Cash and Credit

GENERAL INFORMATION

Customers :

Wholesalers, Retailers, End Users and OEM’s

No. of Employees :

250 (In office – 30, In factory – 220)

Bankers :

• Allahabad Bank, Branch The Mall, Kanpur – 208 001, Uttar Pradesh, India
• Bank of Baroda
• ICICI Bank Limited
• The Jammu and Kashmir Bank Limited
• HDFC Bank

Facilities :

Secured Loans	31.03.2007 Rs. In Millions
Bank of Baroda (Term Loan)	16.696
ICICI Bank (Car No.1115)	0.030
ICICI Bank (Car No.5915)	0.153
ICICI Bank (Truck)	0.500
Allahabad Bank Term Loan	0.002
Bank Overdrawn
Allahabad Bank	4.482
Allahabad Bank (B.P.)	2.799
Bank of Baroda (P.C.)	7.500
Total	32.162

Unsecured Loans	31.03.2007 Rs. In Millions
Including Interest Accrued From Relatives	22.934
Total	22.934

Banking Relations :	--
Auditors :
Name :	Gulati Malik and Sridhar Chartered Accountants
Address :	C-11 (117/ 97), Sarvodaya Nagar, Kanpur – 208 001, Uttar Pradesh, India
Associates/Subsidiaries :	Pacific Leather Finisher Address: 197/ 189, Ramrai Sarai Jajmau, Kanpur – 208 010, Uttar Pradesh, India Line of Business: Manufacturer and Exporter of Leather and Leather Products. Pacific Export Address: 197/ 189, Ramrai Sarai Jajmau, Kanpur – 208 010, Uttar Pradesh, India Line of Business: Manufacturer and Exporter of Leather and Leather Products.

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
823000	Equity Shares	Rs.10/- each	Rs.8.230 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		8.230	8.230	8.230
2] Share Application Money		5.850	5.850	5.850
3] Reserves & Surplus		13.153	7.002	4.983
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		27.233	21.082	19.063
LOAN FUNDS
1] Secured Loans		32.162	23.689	22.904
2] Unsecured Loans		22.934	22.308	15.041
TOTAL BORROWING		55.096	45.997	37.945
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		82.329	67.079	57.008
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		45.472	33.764	34.005
Capital work-in-progress		1.697	0.174	0.019
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	35.183	41.837	55.031
	Sundry Debtors	33.168	23.381	11.191
	Cash & Bank Balances	2.943	0.630	0.321
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	23.045	7.877	3.073
Total Current Assets		94.339	73.725	69.616
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	52.802	37.538	40.993
	Other Current Liabilities	4.737	2.851	5.507
	Provisions	1.640	0.195	0.132
Total Current Liabilities		59.179	40.584	46.632
Net Current Assets		35.160	33.141	22.984
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		82.329	67.079	57.008

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2007	31.03.2006	31.03.2005
	SALES
		Income	312.078	220.047	136.351
		Other Income	23.735	14.994	7.424
		TOTAL (A)	335.813	235.041	143.775
Less	EXPENSES
		Cost of Material	257.945	178.338	102.436
		Manufacturing and Other Expenses	28.616	20.806	17.175
		Administrative, Selling and Distribution Expenses	29.900	23.544	15.493
		Other Expenses	1.588	0.108	0.020
		TOTAL (B)	318.049	222.796	135.124
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		17.764	12.245	8.651
Less	FINANCIAL EXPENSES (D)		5.349	4.624	3.167
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		12.415	7.621	5.484
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.101	5.407	3.925
	PROFIT BEFORE TAX (E-F) (G)		6.314	2.214	1.559
Less	TAX (H)		0.164	0.195	0.132
	PROFIT AFTER TAX (G-H) (I)		6.150	2.019	1.427
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		7.002	4.982	3.555
	BALANCE CARRIED TO THE B/S		13.152	7.001	4.982
	Earnings Per Share (Rs.)		7.47	NA	NA

Particulars	31.03.2010	31.03.2009
Sales Turnover	350.000	310.000

Expected Sales (2010-11): Rs.450.000 millions

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	1.83	0.86	0.99
Net Profit Margin (PBT/Sales)	(%)	2.02	1.01	1.14
Return on Total Assets (PBT/Total Assets}	(%)	4.52	2.06	1.50
Return on Investment (ROI) (PBT/Networth)		0.23	0.11	0.08
Debt Equity Ratio (Total Liability/Networth)		4.20	4.11	4.44
Current Ratio (Current Asset/Current Liability)		1.59	1.82	1.49

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL RESULTS:

The Sales and other income of the company has increased from Rs.235.041 millions in the financial year 2005-06 to Rs.335.813 millions in the current year. Profits for the year has also increased from Rs.2.019 millions in the previous year to Rs.6.150 millions in the current year.

FUTURE PROSPECTS:

Inspite of stiff market competition, the products of the company are being well accepted in the market on the strength of its quality. The company is exploring new markets which should result in more orders during the year. The strategy of the company is to improve the quality of its products and productivity of its operations which will result in more sales and profits during the coming year. The Directors look forward to the future with confidence.

This form is for

Modification of charge

Charge identification number of the modified

90269637

Corporate identity number of the company

U19123UP1994PTC017053

Name of the company

PACIFIC LEATHER PRIVATE LIMITED

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

197/ 189, Ramrai Sarai Jajmau, Kanpur – 208 010, Uttar Pradesh, India

Type of charge

Immovable Property

Particular of charge holder

Allahabad Bank, Branch The Mall, Kanpur – 208 001, Uttar Pradesh, India

E-Mail: arvindkanput@rediffmail.com

Nature of description of the instrument creating or modifying the charge

Term loan Agreement	Rs.17.280 millions
Packaging credit and FBP	Rs.20.000
FLC	Rs.5.000 millions
TOTAL	Rs.42.280 millions

Date of instrument Creating the charge

18/02/2008

Amount secured by the charge

Rs.42.280 millions

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

Rate of Interest:

Interest at the rate of 1.5% p a below over Allahabad bank P L R which is at present 13.25% p a monthly rests

Terms of Repayment:

Repayment on demand

Margin:

25%

Extent and Operation of the charge:

As per agreement

Short particulars of the property charged

198-200 Gaggupurwa Jajmau Kanpur

Particulars of the present modification

Now the limit enhanced from Rs.19.400 millions to Rs.42.280 millions.

TRADE REFERENCES:

· Master Sofa, Malay

FIXED ASSETS:

· Air Compressor

· Air Conditioner

· Boiler

· Car

· Chrome Recovery Plant

· Computer

· Conveyor

· Cooler

· Cycle

· Drum

· Electric Installation

· Footwear Equipments

· Furniture and Fixture

· Generator

· Laboratory Equipment

· Paddle

· Photocopy Machine

· Plant and Machinery

· Scooter

· Telephone and EPBAX

· Tubewell and Pipe

· Typewriter

· Water Cooler and Fridge

· Truck

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.51.27
UK Pound	1	Rs.81.38
Euro	1	Rs.67.01

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

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

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.