MIRA INFORM REPORT

Report Date :

21.08.2012

IDENTIFICATION DETAILS

Name :	THE CONSTRUCTIONS AND INDUSTRIES LIMITED
Registered Office :	P.O. Shewan Tennery Jajmau, Kanpur-208010, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.04.1946
Com. Reg. No.:	20-001446
Capital Investment / Paid-up Capital :	Rs.0.962 Million
CIN No.: [Company Identification No.]	U29248UP1946PLC001446
TAN No.: [Tax Deduction & Collection Account No.]	KNPT01057A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Leathers.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (37)

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

Maximum Credit Limit :	USD 32000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. But the networth seem to be sufficient. Trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for normal 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED

Management non co-operative.

LOCATIONS

Registered Office/ Factory :	P.O. Shewan Tennery Jajmau, Kanpur-208010, Uttar Pradesh, India
Tel. No.:	91-512-2460186
Fax No.:	91-512-2460803
E-Mail :	pltandon1957@rediffmail.com

DIRECTORS

AS ON 12.09.2011

Name :

Mr. Anwar Ul Haq

Designation :

Director

Address :

QF 8/3, Padam Apartments, 16/16 Civil Lines, Kanpur-208001, Uttar Pradesh, India

Date of Birth/Age :

03.08.1947

Date of Appointment :

11.08.1966

Din No.:

00613818

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U29248UP1946PLC001446	THE CONSTRUCTIONS AND INDUSTRIES LIMITED	Managing director	11/08/1966	11/08/1966	Active	NO
2	U26911UP1987PTC008783	JALEES TANNERS PRIVATE LIMITED	Director	15/04/1996	15/04/1996	Active	NO
3	U19115UP2012PLC051976	MEGALEATHER CLUSTERDEVELOPMENT (U.P.) LIMITED	Director	14/08/2012	14/08/2012	Active	NO

Name :

Mrs. Naheed Anwar

Designation :

Director

Address :

QF 8/3, Padam Apartments, 16/16 Civil Lines, Kanpur-208001, Uttar Pradesh, India

Date of Birth/Age :

02.08.1959

Date of Appointment :

31.12.1992

Din No.:

00303119

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U29248UP1946PLC001446	THE CONSTRUCTIONS AND INDUSTRIES LIMITED	Director	31/12/1992	31/12/1992	Active	NO
2	U26911UP1987PTC008783	JALEES TANNERS PRIVATE LIMITED	Director	02/04/1993	02/04/1993	Active	NO

Name :

Mr. Qamar Saidd

Designation :

Director

Address :

141, Harding Road, Mirpur Cantt, Kanpur-208004, Uttar Pradesh, India

Date of Birth/Age :

04.10.1930

Date of Appointment :

15.02.1999

Name :

Mr. Zafar Ul Haq

Designation :

Director

Address :

QB 8/3, Padam Apartments, 16/16 Civil Lines, Kanpur-208001, Uttar Pradesh, India

Date of Birth/Age :

16.06.1982

Date of Appointment :

12.07.2002

Din No.:

00979913

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U29248UP1946PLC001446	THE CONSTRUCTIONS AND INDUSTRIES LIMITED	Director	12/07/2002	12/07/2002	Active	NO
2	U26911UP1987PTC008783	JALEES TANNERS PRIVATE LIMITED	Director	08/05/2006	08/05/2006	Active	NO

Name :

Mr. Vinod Kumar

Designation :

Director

Address :

L 10/2, Ganga Vihar, Jajmau, Kanpur-208010, Uttar Pradesh, India

Date of Birth/Age :

04.08.1959

Date of Appointment :

30.09.2003

Din No.:

00604887

Name :

Mr. Ikram Ul Haq

Designation :

Director

Address :

30, Rani Laxmibai Marg, Cantt, Kanpur-208004, Uttar Pradesh, India

Date of Birth/Age :

10.10.1992

Date of Appointment :

12.09.2011

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 12.09.2011

Names of Shareholders	No. of Shares
Aziz Abdul Khan	2
Anwar Ul Haq	2850
Ehsan Ul Haq	497
Anwar Ul Haq and Others	2680
Mohammad Amil	30
Mohammad Ashfaq	10
Ali Majid	1
Mohammad Saeed Khan Haji	2
Mohammad Majid	2
Masood Ul Haq	102
Syed Mohammad	2
Snams Ul Haq	200
Talib Mussain	1
Naheed Anwar	2700
Zafar Ul Haq	209
Ikram Ul Haq	209
Nasir Haider Syed	1
Rashidan and Others	3
Naheed Anwar and Others	20
Uzma Zehra Haq	100
Total	9621

AS ON 22.06.2012

Names of Allottees	No. of Shares
Anwar Ul Haq	4650
Naheed Anwar	3300
Zafar Ul Haq	6025
Ikram Ul Haq	6025
Total	20000

AS ON 12.09.2011

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

BUSINESS DETAILS

Line of Business :

Manufacturer of Leathers.

Products :

PRODUCT DESCRIPTION	ITEM CODE
Processing of Raw Hides	201024, 201014 and 201001

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Licensed Capacity	Installed Capacity
Vegetable Tanned Sole Leather [Including belting and harness]	No. of Hides	216000	216000
Chrome Tanned Wet Blue Leather	No. of Hides	200000	200000
Chrome Tanned Finished Leather	No. of Hides	216000	216000

Actual Production [No. of Hides]

42441.00

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Small Industries Development Bank of India, First Floor, Krishna Tower, 15/63, Civil Lines, Kanpur-208001, Uttar Pradesh, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Cash Credit	0.000	1.113
Packing Credit Account [Secured against hypothecation of stocks]	2.800	0.056
Vehicle Loan [Secured by hypothecation of car]	0.804	0.745
Total	3.604	1.914
Unsecured Loan
From Directors	3.646	5.069
From Others	2.150	2.120
Total	5.796	7.189

Banking Relations :	--
Auditors :
Name :	Tandon and Company Chartered Accountants
Address :	P.L. Tandon and Company, Westcott Building, M.G. Road, P.O. Box No. 113, Kanpur-208001, Uttar Pradesh, India
Tel. No.:	91-512-2366774/2367262/3022991
E-Mail :	pltandon1957@rediffmail.com pltandon1957@gmail.com
Pan No.:	AAAFP9919M

CAPITAL STRUCTURE

AS ON 12.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
29621	Equity Shares	Rs.100/- each	Rs.2.962 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
25000	Equity Shares	Rs.100/- each	Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9621	Equity Shares	Rs.100/- each	Rs.0.962 Million

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		0.962	0.962	0.962
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		7.199	6.935	6.776
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		8.161	7.897	7.738
LOAN FUNDS
1] Secured Loans		3.604	1.914	4.288
2] Unsecured Loans		5.796	7.189	6.856
TOTAL BORROWING		9.400	9.103	11.144
DEFERRED TAX LIABILITIES		0.220	0.280	0.445
OTHERS		0.025	0.025	0.000
TOTAL		17.806	17.305	19.327
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7.260	7.265	8.698
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	23.144	16.085	19.428
	Sundry Debtors	23.102	15.886	15.657
	Cash & Bank Balances	2.025	1.655	1.285
	Other Current Assets	2.417	0.746	0.000
	Loans & Advances	2.281	2.330	1.999
Total Current Assets		52.969	36.702	38.369
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	40.174	24.388	24.247
	Other Current Liabilities	1.867	1.408	2.802
	Provisions	0.382	0.866	0.691
Total Current Liabilities		42.423	26.662	27.740
Net Current Assets		10.546	10.040	10.629
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		17.806	17.305	19.327

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	77.903	54.114	83.719
		Other Income	5.572	1.750	1.839
		Closing Stock of Finished Stocks	4.982	3.856	0.477
		Closing Stock of Work in Progress	13.311	8.599	14.896
		TOTAL	101.768	68.319	100.931
Less	EXPENSES
		Good in Process	8.599	14.896	21.978
		Finished Goods	3.856	0.478	6.597
		Purchase of Finished Goods	3.721	6.350	9.453
		Raw Hide Consumed	42.279	17.171	25.965
		Stores Consumption	26.751	17.418	22.187
		Payment to and Provisions for Employees Salary, Wages, Gratuity, Bonus, etc.	4.495	2.848	3.519
		Power and Fuel	3.165	2.447	2.577
		Selling Expenses	1.425	0.481	1.284
		Others Expenses	5.988	4.596	6.081
		TOTAL	100.279	66.685	99.641
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		1.489	1.634	1.290
Less/ Add	DEPRECIATION/ AMORTISATION		1.227	1.464	0.944
	PROFIT / (LOSS) BEFORE TAX		0.262	0.170	0.346
Less	TAX		(0.001)	0.011	0.360
	PROFIT / (LOSS) AFTER TAX		0.263	0.159	(0.014)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.089	0.080	0.294
Less	APPROPRIATIONS
		Transfer to General Reserve	0.300	0.150	0.200
	BALANCE CARRIED TO THE B/S		0.052	0.089	0.080
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	43.845	11.844	9.718
	TOTAL EARNINGS		43.845	11.844	9.718
	IMPORTS
		Tanning Materials	5.426	2.623	7.292
	TOTAL IMPORTS		5.426	2.623	7.292
	Earnings / (Loss) Per Share (Rs.)		27.34	16.53	(1.46)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.25	0.23	(0.01)
Net Profit Margin (PBT/Sales)	(%)	0.34	0.31	0.41
Return on Total Assets (PBT/Total Assets}	(%)	0.44	0.39	0.74
Return on Investment (ROI) (PBT/Networth)		0.03	0.02	0.04
Debt Equity Ratio (Total Liability/Networth)		6.35	4.53	5.03
Current Ratio (Current Asset/Current Liability)		1.25	1.37	1.38

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes
31) PAN of Proprietor/Partner/Director, if available	No
32) Date of Birth of Proprietor/Partner/Director, if available	Yes
33) Voter ID No of Proprietor/Partner/Director, if available	No
34) External Agency Rating, if available	No

OPERATIONS:

During the year, turnover of the company has increase from Rs.54.114 Millions to Rs.77.903 Millions and profit of the company also increased from Rs.0.170 Million to Rs.0.260 Million.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Creation of charge
Corporate identity number of the company	U29248UP1946PLC001446
Name of the company	THE CONSTRUCTIONS AND INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	P.O. Shewan Tennery Jajmau, Kanpur-208010, Uttar Pradesh, India
Type of charge	Movable Property [not being pledge]
Particular of charge holder	Small Industries Development Bank of India, First Floor, Krishna Tower, 15/63, Civil Lines, Kanpur-208001, Uttar Pradesh, India
Email	akpandey@sidbi.in
Nature of description of the instrument creating or modifying the charge	Loan Agreement and Deed of Hypothecation
Date of instrument Creating the charge	15.06.2012
Amount secured by the charge	Rs.5.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest shall be payable 0.50% above PLR. Present PLR being 12.75% p.a. current effective rate would be 13.25% p.a. Terms of Repayment The loan shall be repaid by the borrower to SIDBI in 60 monthly installments, comprising First 59 installments of Rs 0.083 Million and last installment of Rs.0.085 Million commencing after moratorium of 6 months from the date of first disbursement of the loan as per the repayment Margin Promoters Contribution of Rs. 3.222 Millions Extent and Operation of the charge First charge by way of hypothecation of all the moveable assets of DOH dated 15/03/2012 in the manner and by the charge, as security for the repayment to SIDBI of principal amount and of other moneys including interest, further interest, additional interest, penal interest, costs, charges and expenses including any increase as a result of fluctuation in the rate of exchange of foreign currency.
Short particulars of the property charged	One Drying Toggling Machine, One reconditioned Through Feed Continuous Wet Blue Sammying Machine One ATOM clicking machine, Four TOYO Single needle Postbed Lockstitch machine, 2 Double needle postbed Lockstitch Machine and 1 Toyo Skiving Machine all situated at PO- Shewan Tannery, Jajmau, Kanpur.

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Generator

· Other Equipments

· Furniture and Fixtures

· Scooter and Moped

· Computer

· Cellular Phone

· Cycle

· Motor Car

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.55.70
UK Pound	1	Rs.87.55
Euro	1	Rs.68.85

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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		37

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.