MIRA INFORM REPORT

Report Date :

22.08.2012

IDENTIFICATION DETAILS

Name :	ZEE FOOTWEARS PRIVATE LIMITED
Registered Office :	194, Gagan Vihar, New Delhi – 110051
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.05.1994
Com. Reg. No.:	55-058895
Capital Investment / Paid-up Capital :	Rs.5.200 Millions
CIN No.: [Company Identification No.]	U10000DL1994PTC058895
TAN No.: [Tax Deduction & Collection Account No.]	DELZ00361E/ DELZ00343A
PAN No.: [Permanent Account No.]	AAACZ0281D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Footwears.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 110000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for normal business dealing 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 – 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.

LOCATIONS

Registered Office :	194, Gagan Vihar, New Delhi – 110051, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	jainrakesh412@rediffmail.com
Factory :	C-10, Dev Bhoomi Industrial Estate, Bantakhedi Village, Roorkee, Haridwar District, Uttarakhand, India
Tel. No.:	91-1332-231090

DIRECTORS

(AS ON 30.09.2011)

Name :	Mr. Pramod Jain
Designation :	Director
Address :	194, Gagan Vihar, New Delhi, India
Date of Birth/Age :	01.08.1959
Date of Appointment :	09.05.1994
DIN No.:	00120111
Name :	Mr. Sudesh Mehta
Designation :	Director
Address :	195, Gagan Vihar, New Delhi, India
Date of Birth/Age :	03.03.1932
Date of Appointment :	10.10.1997
DIN No.:	00120544

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Shares
Pramod Jain	98720
Sudesh Mehta	20000
Neelam Mehta	18880
Amit Jain	72560
Sushma Chhabra	50
Anshu Chhabra	50
Muni Lal Jain	50
Sushil Kumar Jain	70
Kamleh Jain	10000
Ritesh Jain	10000
Sudesh Jain	49800
Suchita Jain	20000
Nikhil Jain	5000
Ritika Jain	4860
Lovleh Kumar Jain	10
Monica Girdhar	10
Neelam Sharma	10
Shushil Kumar Chhabra – HUF	10
Samit Jain	40010
Ramesh Arora	10
Shashi Bhushan	60
Karan Jain	10
Manoj Jain	10
Naresh Girdhar	10
Naresh Bhagat	10
Vinod Hasteer	10
Kirti Mehta	10
Pramod Jain – HUF	45010
Shallu Jain	10010
Shanti Kumar Jain	94660
Vasu Mehta	20
Muni Lal Jain – HUF	30
Amit Jain – HUF	10
Shashi Jain	10
Rakesh Jain – HUF	10
Kusum Bhagat	10
Manya jain	10
Jitendra Jain	20000
Total	520000

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Bodies corporate	99.95
Directors or relatives of directors	0.05
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Footwears.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Installed Capacity	Actual Production
Footwears	NA	263889

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Oriental Bank of Commerce SSI

Sahibabad, Ghaziabad – 201001, Uttar Pradesh, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Term Loan (Term Loan from Oriental Bank of Commerce, Sahibabad against Hypothecation of Fixed Assets)	2.073	3.599
Cash Credit/ Working Capital Limit Secured from OBC, Sahibabad by hypothecation of stock, book debts and personal guarantee by the directors.	9.936	9.096
Vehicle Term Loans Secured Loan from OBC Bank against hypothecation of Vehicles	0.000	0.037
Total	12.009	12.732
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Director	0.155	0.514
From Shareholders	9.705	4.554
Total	9.860	5.068

Banking Relations :	--
Auditors :
Name :	Lalit Gupta and Associates Chartered Accountant
Address :	412, Arunachal Building, 19, Barakhamba Road, New Delhi – 110001, India
Tel. No.:	91-11-23717400/ 23718900
PAN No.:	AAAFL5833E

CAPITAL STRUCTURE

(AS ON 30.09.2011)

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
520000	Equity Shares	Rs.10/- each	Rs.5.200 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		5.200	5.200	5.200
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		21.226	18.888	15.658
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		26.426	24.088	20.858
LOAN FUNDS
1] Secured Loans		12.009	12.732	15.034
2] Unsecured Loans		9.860	5.068	4.599
TOTAL BORROWING		21.869	17.800	19.633
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		48.295	41.888	40.491
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11.666	13.229	14.748
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	7.536	8.972	3.888
	Sundry Debtors	19.896	19.116	20.356
	Cash & Bank Balances	0.851	0.684	0.490
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	13.873	5.725	4.894
Total Current Assets		42.156	34.497	29.628
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	4.340	4.526	2.319
	Other Current Liabilities	0.648	0.683	0.845
	Provisions	0.540	0.629	0.721
Total Current Liabilities		5.528	5.838	3.885
Net Current Assets		36.629	28.659	25.743
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		48.295	41.888	40.491

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	53.307	47.641	38.415
		Other Income	0.057	0.005	0.004
		TOTAL (A)	53.364	47.646	38.419
Less	EXPENSES
		Increase/(Decrease) in Finished Stock and Others	(1.980)	(0.478)	1.274
		Cost of Materials Consumed	40.167	32.860	21.532
		Manufacturing Expenses	0.818	0.818	0.704
		Personnel Expense	2.993	2.394	1.961
		Administrative expense	4.237	3.742	1.910
		Selling and Distribution Expenses	0.459	0.320	0.680
		TOTAL (B)	46.694	39.656	28.061
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		6.670	7.990	10.358
Less	FINANCIAL EXPENSES (D)		2.318	2.390	2.379
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.352	5.600	7.979
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.475	1.740	1.683
	PROFIT BEFORE TAX (E-F) (G)		2.877	3.860	6.296
Less	TAX (H)		0.539	0.629	0.720
	PROFIT AFTER TAX (G-H) (I)		2.338	3.231	5.576
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		18.888	15.657	10.081
	BALANCE CARRIED TO THE B/S		21.226	18.888	15.657
	IMPORTS VALUE		3.306	7.925	4.008
	Earnings Per Share (Rs.)		4.50	6.21	10.72

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.38	6.78	14.51
Net Profit Margin (PBT/Sales)	(%)	5.40	8.10	16.39
Return on Total Assets (PBT/Total Assets}	(%)	5.35	8.09	14.19
Return on Investment (ROI) (PBT/Networth)		0.11	0.16	0.30
Debt Equity Ratio (Total Liability/Networth)		1.04	0.98	1.13
Current Ratio (Current Asset/Current Liability)		7.63	5.91	7.63

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

FORM 8:

Corporate identity number of the company	U10000DL1994PTC058895
Name of the company	Zee Footwears private Limited
Address of the registered office or of the principal place of business in India of the company	194, Gagan Vihar, New Delhi, India
This form is for	Creation of charge
Type of charge	Equitable mortgage or mortgage of property by depositing the title deeds
Particular of charge holder	· Oriental Bank of Commerce SSI Sahibabad, Ghaziabad – 201001, Uttar Pradesh, India sgarg_ca@yahoo.co.in
Nature of description of the instrument creating or modifying the charge	Letter of Deposit title deed for equitable mortgage (LTR-18.1) Dated 08.09.2006
Date of instrument Creating the charge	08.09.2006
Amount secured by the charge	Rs.30.500 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	All the fund based/ non fund based facility existing and future hall be collaterally secured by this assets described as above of the company.
Short particulars of the property charged	Immovable Properties Plant and Machinery Furniture and Fixture

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· General

· Electrical Installation

· Tubewell

· D. G. Set

· Dies and Moulds

· Power Equipment

· Office Equipment

· 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.55.54
UK Pound	1	Rs.87.39
Euro	1	Rs.68.72

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--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		47

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.