MIRA INFORM REPORT

Report Date :

27.08.2012

IDENTIFICATION DETAILS

Name :	FARIDA LEATHERWARE PRIVATE LIMITED
Registered Office :	151/4, Mount Poonamallee High Road, Ramapuram, Chennai – 600089, Tamil Nadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	31.03.1992
Com. Reg. No.:	18-022111
Capital Investment / Paid-up Capital :	Rs. 1.220 Millions
CIN No.: [Company Identification No.]	U18209TN1992PTC022111
TAN No.: [Tax Deduction & Collection Account No.]	CHEF00232B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of a market high quality men and women footwear and finished leather.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 62000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Profit margin of the company appears to be low. However, 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 – 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 :	151/4, Mount Poonamallee High Road, Ramapuram, Chennai – 600089, Tamil Nadu, India
Tel. No.:	91-44-22521515
Fax No.:	91-44-26411363
E-Mail :	holding@farida.co.in
Website :	http://www.farida.co.in

DIRECTORS

AS ON 22.09.2011

Name :

Mr. Iqbal Ahmed Mecca

Designation :

Director

Address :

10, Kothari Road, Nungambakkam, Chennai – 600034, Tamilnadu, India

Date of Birth/Age :

10.10.1969

Date of Appointment :

31.01.1992

DIN No.:

00013788

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	U18209TN1987PTC014919	DELTA SHOES PRIVATE LIMITED	Director	29/09/1987	29/09/1987	Active	NO
2	U19201TN1992PTC022110	RIVIERA SHOES PRIVATE LIMITED	Director	31/01/1992	31/01/1992	Strike off	NO
3	U18209TN1992PTC022111	FARIDA LEATHERWARE PRIVATE LIMITED	Director	31/01/1992	31/01/1992	Active	NO
4	U73100TN1993GAP026146	AMBUR FDDI SHOE TECHNOLOGY CENTRE	Director	03/11/1993	03/11/1993	Active	NO
5	U65993TN1985PTC011781	FARIDA HOLDINGS PRIVATE LIMITED	Director	01/01/2000	01/01/2000	Active	NO
6	U18209TN1981PTC008805	FARIDA CLASSIC SHOES PRIVATE LIMITED	Director	01/01/2000	01/01/2000	Active	NO
7	U19201TN2005PTC055925	FARIDA PRIME TANNERY PRIVATE LIMITED	Director	11/04/2005	11/04/2005	Active	NO
8	U19112TN2006PTC058989	JAFRA INSOLES INDIA PRIVATE LIMITED	Director	24/02/2006	24/02/2006	Active	NO

Name :

Rasheed Ahmed Mecca

Designation :

Director

Address :

New No. 162, Old No. 936, Periyar E V R Road, Chennai – 600084, Tamilnadu, India

Date of Birth/Age :

01.01.1949

Date of Appointment :

31.01.1992

DIN No.:

00013760

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	U65993TN1985PTC011781	FARIDA HOLDINGS PRIVATE LIMITED	Director	19/04/1985	19/04/1985	Active	NO
2	U18209TN1987PTC014919	DELTA SHOES PRIVATE LIMITED	Director	29/09/1987	29/09/1987	Active	NO
3	U18209TN1992PTC022111	FARIDA LEATHERWARE PRIVATE LIMITED	Director	31/01/1992	31/01/1992	Active	NO
4	U33209TN1999PTC043409	FARIDA NEWLINE STUDIO PRIVATE LIMITED	Director	26/10/1999	26/10/1999	Amalgamated	NO
5	U19201TN2001PTC046498	CHENNAI FOOTWEAR PRIVATE LIMITED	Director	25/01/2001	25/01/2001	Amalgamated	NO
6	U19201TN2005PTC055925	FARIDA PRIME TANNERY PRIVATE LIMITED	Director	11/04/2005	11/04/2005	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 22.09.2011

Names of Shareholders	No. of Shares
Iqbal Ahmed Mecca	1
Farida Holdings Private Limited, India	12199
Total	12200

AS ON 22.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of a market high quality men and women footwear and finished leather.

PRODUCTION STATUS AS ON (31.03.2010)

Particulars	Unit	Qty.
Licensed Capacity	Pairs	900000
Installed Capacity	Pairs	900000

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Leather International Branch, MVJ Towers 177/1, Kilpauk, Chennai – 600010, Tamil Nadu, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
SBI LIB Chennai-Current Account	0.000	0.568
SBI LIB Packing Credit	27.665	23.556
Total	27.665	24.124
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Directors and Shareholders	0.954	0.954
Farida Shoes Private Limited-Long Term Loan	28.958	21.897
Total	29.912	22.851

Banking Relations :	--
Auditors :
Name :	Kalyanasundram and Company Chartered Accountants
Address :	18 (Old No. 22) Second Cross Street, Lake Area, Nungambakkam, Chennai – 600034, Tamil Nadu, India
Tel. No.:	91-44-28172873/ 28175393
E-Mail :	bks_chennai@dataone.in kau_krish@yahoo.co.in
Income-tax PAN of auditor or auditor’s firm :	AAAFK0600Q
Holding Company :	Farida Holdings Private Limited [U65993TN1985PTC011781]
Related Parties :	v Farida Classic Shoes Private Limited v Farida Prime Tannery v Farida Shoes Private Limited v Delta Shoes Private Limited v Kenmore Shoes Private Limited v Farida Holding Private Limited v Exeter Shoes Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
25,000	Equity Shares	Rs. 100/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12,200	Equity Share	Rs. 100/- each	Rs. 1.220 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		1.220	1.220	1.220
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		14.489	12.972	21.056
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		15.709	14.192	22.276
LOAN FUNDS
1] Secured Loans		27.665	24.124	40.322
2] Unsecured Loans		29.912	22.851	32.444
TOTAL BORROWING		57.577	46.975	72.766
DEFERRED TAX LIABILITIES		1.450	1.523	1.622
TOTAL		74.736	62.690	96.664
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		14.984	15.751	16.771
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.145	0.145	0.145
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	31.434	30.120	62.765
	Sundry Debtors	30.938	15.360	34.605
	Cash & Bank Balances	0.521	2.002	4.736
	Other Current Assets	0.000	0.758	1.365
	Loans & Advances	14.169	16.602	22.815
Total Current Assets		77.062	64.842	126.286
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	17.455	18.048	46.538
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	0.000	0.000	0.000
Total Current Liabilities		17.455	18.048	46.538
Net Current Assets		59.607	46.794	79.748
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		74.736	62.690	96.664

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	91.722	113.507
		Other Income	33.672	16.993
		TOTAL (A)	125.394	130.500	146.039
Less	EXPENSES
		Raw Material Consumed	83.183	57.423
		Manufacturing Cost	6.360	7.726
		Employee Cost	19.845	17.197
		Administrative Expenses	3.339	2.638
		Selling Expenses	2.134	1.848
		Increase/ (Decrease) in stock	3.794	37.603
		TOTAL (B)	118.655	124.435	146.746
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		6.739	6.065	[Including interest and depreciation]
Less	FINANCIAL EXPENSES (D)		2.362	2.789
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.377	3.276
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.174	2.289
	PROFIT BEFORE TAX (E-F) (G)		2.203	0.987	[0.707]
Less	TAX (H)		0.686	0.485	[0.167]
	PROFIT AFTER TAX (G-H) (I)		1.517	0.502	[0.540]
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		12.873	21.056	N.A.
Less	APPROPRIATIONS
		Dividend Paid	0.000	7.500
		Dividend Tax Paid	0.000	1.275	N.A.
	BALANCE CARRIED TO THE B/S		14.390	12.873	21.056
	CIF VALUE OF IMPORTS		0.000	30.181	51.578
	Earnings Per Share (Rs.)		124.34	56.58	Nil

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.21	0.38	[0.37]
Net Profit Margin (PBT/Sales)	(%)	2.40	0.87	N.A.
Return on Total Assets (PBT/Total Assets}	(%)	2.39	1.22	[0.49]
Return on Investment (ROI) (PBT/Networth)		0.14	0.07	[0.03]
Debt Equity Ratio (Total Liability/Networth)		4.78	4.58	5.36
Current Ratio (Current Asset/Current Liability)		4.41	3.59	2.71

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	Yes
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

FIXED ASSETS:

v Land

v Factory Building

v Plant and Machinery

v Electrical Fitting

v Vehicle

v Office Equipments

v Furniture and Fittings

v Computer

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. 55.38
UK Pound	1	Rs. 87.80
Euro	1	Rs. 69.48

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		44

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.