MIRA INFORM REPORT

Report Date :

18.02.2012

IDENTIFICATION DETAILS

Name :	SURI SHOES PRIVATE LIMITED
Registered Office :	117/Q/ 67, Sharda Nagar, Kanpur – 208025, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	11.11.1992
Com. Reg. No.:	20-14872
Capital Investment / Paid-up Capital :	Rs14.500 Millions
CIN No.: [Company Identification No.]	U19201UP1992PTC014872
TAN No.: [Tax Deduction & Collection Account No.]	KNPS00437D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of Industrial Leather, Saddlery and Harness, Bicycle, Saddles, Shoe Uppers, Shoes and Leather Goods.
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 800000
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 normal for 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 – 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/ Factory :	117 / Q / 67, Sharda Nagar, Kanpur – 208025, Uttar Pradesh, India.
Tel. No.:	91- 512- 2581155/ 2581177/ 2581616
Fax No.:	91- 512- 2581133/ 2583181
E-Mail :	surishoes@lw1.vsnl.net.in shoe@surishoes.com accounts@surishoes.com rakesh@surishoes.com ranjan@surishoes.com dhruv@surishoes.com simon@surishoes.co.uk dinesh@surishoes.com amitabh@surishoes.com chadha@surishoes.com dileep@surishoes.com abhishek@surishoes.com rajesh@surishoes.com
Website :	http://www.surishoes.com
Area :	41000 sq. ft.
Location :	Rented
Overseas Office	Mayfayre House, London Road, Denington Ind. Estate, Wellingborough, Northants, NN8 2QH, England
Tel. No.:	44-1933-277521
Fax No.:	44-1933-277511
E-Mail :	sales@shevalshoes.com
Factory 1 :	Kalyanpur – Bithoor Road, Kanpur – 208017, India
Tel. No.:	91-512-2572121, 2572256
Fax No.:	91-512-2572122
E-Mail :	unit2@surishoes.com
Factory 2 :	S.S. Leather, A-16, Sector – 57, Noida, India
Tel. No.:	91-120-2586101-03
Fax No.:	91-120-2585836
E-Mail :	noida@surishoes.com
UK Office :	17, Barnwell Court, Mawsley Village, Northamptonshire NH 14 FG
Tel No.:	91-844-2578810
Fax No.:	91-844-2578811
Email :	sales@suriseshoes.co.uk
Branches :	Located at · Delhi

DIRECTORS

(AS ON 30.09.2011)

Name :

Mr. Rakesh Suri

Designation :

Managing Director

Address :

113 / 38, Swaroop Nagar, Kanpur – 208002, Uttar Pradesh , India

Date of Birth/Age :

26.09.1961

Date of Appointment :

11.11.1992

DIN No.:

00155648

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U19201UP1992PTC014872	SURI SHOES PRIVATE LIMITED	Managing director	11/11/1992	11/11/1992	Active	NO
2	U18101DL1998PTC094736	HARSH FASHIONS PRIVATE LIMITED	Director	1/3/2000	1/3/2000	Active	NO
3	U75111DL2000PTC108389	LEATHER ONLINE PRIVATE LIMITED	Managing director	2/11/2000	2/11/2000	Active	NO
4	U19115UP2008PLC041646	KANPUR - UNNAO LEATHER CLUSTER DEVELOPMENT COMPANY LIMITED	Director	8/5/2008	11/4/2008	Active	NO
5	U91110UP1932NPL000467	MERCHANT CHAMBER OF UTTAR PRADESH	Director	4/10/2010	4/10/2010	Active	NO

Name :

Mrs. Amita Suri

Designation :

Director

Address :

113 / 38, Swaroop Nagar, Kanpur – 208002, Uttar Pradesh , India

Date of Birth/Age :

20.09.1961

Date of Appointment :

11.11.1992

DIN No.:

00155674

Name :

Mr. Rajan Suri

Designation :

Director

Address :

113 / 38, Swaroop Nagar, Kanpur – 208002, Uttar Pradesh , India

Date of Birth/Age :

12.12.1956

Date of Appointment :

01.04.2006

DIN No.:

00155690

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U19201UP1991PTC013505	CUSHY SHOES PRIVATE LIMITED	Managing director	16/09/1991	16/09/1991	Active	NO
2	U18101DL1998PTC094736	HARSH FASHIONS PRIVATE LIMITED	Director	1/3/2000	1/3/2000	Active	NO
3	U19201UP1992PTC014872	SURI SHOES PRIVATE LIMITED	Director	1/4/2006	1/4/2006	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Shares
Rakesh Suri	440000
Amita Suri	455000
Rajan Suri	130000
Shalini Suri	130000
Karan Suri	38000
Dhruv Suri	110000
Rashim Suri	73500
Shrita Suri	73500
Total	1450000

(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 :

Manufacturing of Industrial Leather, Saddlery and Harness, Bicycle, Saddles, Shoe Uppers, Shoes and Leather Goods.

Products :

Products Description	Item Code No.
Shoe Uppers	640610
Shoes	640391

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Shoes	Prs	--	--	115769
Shoes Uppers	Prs	--	--	813906

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India

Overseas Branch, 15/54-B, Virendra Smriti, Civil Lines, Kanpur – 208001, Uttar Pradesh, India

· Allahabad Bank

The Mall Road, Civil Lines, Kanpur, Uttar Pradesh, India

· IDBI Bank

Civil Lines, Kanpur – 208001, Uttar Pradesh, India

· Punjab National Bank

· ICICI Bank

· State Bank of Patiala

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Export Packing Credit from
State Bank of India, Overseas Branch (P/C A/c) (Secured by hypothecation of Stock)	154.977	143.638
State Bank of India, Overseas Branch (Current A/c)	14.976	6.473
State Bank of India, Overseas Branch (Post Shipment A/c)	29.023	19.970
Foreign Bills Purchase From
State Bank of India, Overseas Branch, Kanpur (Secured by Lien on Export Bills)	15.782	--
State Bank of India Term Loan (Secured by charge on Entire Fixed Assets)	28.212	37.601
Total	242.970	207.682
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Shareholders	5.877	0.050
Total	5.877	0.050

Banking Relations :	--
Auditors :
Name :	Ram Kumar Gupta and Associates Chartered Accountants
Address :	Commerce Centre, IV Floor, 14/145, Chunniganj, Kanpur – 208001, Uttar Pradesh, India
Tel No.:	91-512-3021114
Fax No.:	91-512-3048892
PAN No.:	ACGPK0640L
Subsidiaries Company :	· Sheval Shoes Limited, UK
Associates Company :	· Harsh Fashion Private Limited · Leather Online Private Limited · Cushy Shoes Private Limited
Related Parties/Firms :	· S. S. Leathers · Amalgam Shoes · Ultimo

CAPITAL STRUCTURE

(AS ON 30.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- Each	Rs.15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1450000	Equity Shares	Rs.10/- Each	Rs14.500 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		14.500	14.500	14.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		185.270	183.052	181.328
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		199.770	197.552	195.828
LOAN FUNDS
1] Secured Loans		242.970	207.682	214.285
2] Unsecured Loans		5.877	0.050	0.050
TOTAL BORROWING		248.847	207.732	214.335
DEFERRED TAX LIABILITIES		15.663	15.310	14.441
TOTAL		464.280	420.594	424.604
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		179.363	183.308	186.159
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		2.900	3.666	3.616
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	161.139	140.279	136.454
	Sundry Debtors	147.161	111.762	131.232
	Cash & Bank Balances	8.318	19.699	9.867
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	77.596	60.784	57.295
Total Current Assets		394.214	332.524	334.848
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	97.889	78.217	77.565
	Other Current Liabilities	0.534	0.428	0.370
	Provisions	14.417	21.907	25.777
Total Current Liabilities		112.840	100.552	103.712
Net Current Assets		281.374	231.972	231.136
MISCELLANEOUS EXPENSES		0.643	1.648	3.693
TOTAL		464.280	420.594	424.604

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	605.695	563.163	643.711
		Other Income	75.355	64.197	65.976
		TOTAL (A)	681.050	627.360	709.687
Less	EXPENSES
		Materials Consumed	458.819	387.458
		Purchase of Trading Goods	0.190	0.000
		Manufacturing Expenses	58.113	59.126
		Wages, Salary and Benefits to Staff	43.436	33.486	646.741
		Selling Expenses	71.419	46.621
		Other Expenses	17.227	39.890
		(Increase)/Decrease in finished Goods and Work in Progress	(13.385)	17.226	‘
		TOTAL (B)	635.819	583.807	646.741
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		45.231	43.553	62.946
Less	FINANCIAL EXPENSES (D)		24.531	21.161	23.380
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		20.700	22.392	39.566
Less/ Add	DEPRECIATION/ AMORTISATION (F)		15.450	14.615	13.890
	PROFIT BEFORE TAX (E-F) (G)		5.250	7.777	25.676
Less	TAX (H)		1.323	2.632	5.166
	PROFIT AFTER TAX (G-H) (I)		3.927	5.145	20.510
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		--	--	--
Less	APPROPRIATIONS
		Transfer to General Reserve	2.218	1.724	15.382
		Dividend	1.450	2.900	4.350
		Corporate Dividend Tax	0.235	0.487	0.739
		Wealth Tax	0.024	0.034	0.039
	BALANCE CARRIED TO THE B/S		--	--	--
	EARNINGS IN FOREIGN CURRENCY		563.508	552.366
	IMPORTS		108.110	83.417
	Earnings Per Share (Rs.)		2.71	3.55	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.58	0.82	2.89
Net Profit Margin (PBT/Sales)	(%)	0.87	1.38	3.99
Return on Total Assets (PBT/Total Assets}	(%)	0.92	1.51	4.93
Return on Investment (ROI) (PBT/Networth)		0.03	0.04	0.13
Debt Equity Ratio (Total Liability/Networth)		1.81	1.56	1.62
Current Ratio (Current Asset/Current Liability)		3.49	3.31	3.23

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE OF THE COMPANY

During the year company has achieved turnover of Rs. 605.695 Millions as against Rs.583.163 Millions in the previous year. The after depreciation and interests is Rs.5.250 Millions as against Rs.7.777 Millions in the previous year. The reason for lower profit is mainly due to higher cost in freight and clearing expenses on account of consignment being send by air high fluctuation in foreign currency exchange rates. They are hopeful of controlling such expenses in the next financial year and earning before profits.

CONTINGENT LIABILITIES

Claim against the company not acknowledged as debt Rs.0.844 Million (Previous year Rs.0.844 Million)

FORM 8:

Corporate identity number of the company	U19201UP1992PTC014872
Name of the company	SURI SHOES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	117/Q/67, Sharda Nagar, Kanpur – 208025, Uttar Pradesh India accounts@surishoes.com
This form is for	Modification of charge
Charge identification number of the modified	80027671
Type of charge	Immovable Property Book Debts Movable Property Floating charge Others: Fixed Assets and Current Assets
Particular of charge holder	State Bank of India Overseas Branch, 15/54 Virendra Smriti, Civil Lines, Kanpur – 208001, Uttar Pradesh, India v1maheshwari@rediffmail.com
Nature of description of the instrument creating or modifying the charge	Arrangement Letter Letter Regarding the grant of individual limits within the overall limit
Date of instrument Creating the charge	07.09.2011
Amount secured by the charge	Rs.265.200 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest EPC/ FBP- As applicable under SBI Exporters Gold Card Scheme. Term Loan- As per Sanction. Terms of Repayment (i) Working Capital- Repayable on Demand. (ii) Term Loan- As per existing sanction terms. Margin: 25% on Raw material (Domestic/ Imported), 50% on Stock in Process 25% on Finished Goods, 50% on Stores and Spares 25% on Goods at Port/ transit, 100% on Book Debts (Domestic) Nil FBP Documentary, 10% on FBP Clean 5% on Adv. against bills sent on collection Demand bills, 10% on Adv. against bills sent on collection Usance bills 10% on (Cash) Bank Guarantee* 10% on Letter of Credit * 100% cash margin in case of disputed liabilities. Extent and Operation of the charge The Co's assets are Hypothecation and mortgaged to secure credit facility agg. to Rs.265.200 Millions granted by the Bank to the Co.:- 1-EPC* Rs.80.000 Millions. 2-FBP* Rs.100.000 Millions (a) Adv. against bills sent on collection basis (Rs.50.000 Millions). (b) Against clean bills (Rs.10.000 Millions) 3-TL Rs.21.700 Millions. 4-LC Rs.20.000 Millions Sub Limit LC for import of capital goods (Rs.5.000 Millions). 5-BG Rs. 0.500 Millions 6-FC (CEL) Rs.8.000 Millions 7-Stand by limit Rs.35.000 Millions Total Rs. 265.200 Millions * With I/C of Rs.40.000Millionhs. between the EPC and FBP limits.
Short particulars of the property charged	Primary Security:- 1- Working Capital limits- Hypothecation of entire current assets of the company consisting of raw materials, components, stock in process, finished goods, stores and spares, book debts and all other current assets. Export documents evidencing the title to goods. Counter guarantee of the Company. Goods purchased/ imported under Letter of Credit. 2- First charge on the entire Fixed assets (both present and future) of the Company. Collateral Security:- 1- Equitable mortgage of land and building at Plot No. 117/Q/67, situated at Sharda Nagar, Kanpur, admeasuring 1094.04 square meters. 2- Equitable mortgage of land and building at Plot No.826 (Part), situated at Village Singhpur, Bithoor Road, Kanpur admeasuring 1.80 Acre. 3- Equitable mortgage of land and building at Khata No. 202, Arazi No. 4Me, Village Bairi Akbarpur Kacchar, Tehsil and District Kanpur Nagar, admeasuring 3070.00 square meters. 4- Equitable mortgage of land and building at Arazi No. 09, Gram Gangpur Chakbada, Pargana and Tehsil and District Kanpur Nagar, admeasuring 5910.00 square meters. 5- Extension of charge on the entire fixed assets present and future of the Company.
Particulars of the present modification	Various credit facilities granted by the Bank has now been reduced from Rs.283.800 Millions to Rs. 265.200 Millions. Therefore, total amount of charge secured against hypothecation of all stocks, book debts, plant and machinery and fixed assets etc. above has now been reduced from Rs.283.800 Millions to Rs. 265.200 Millions.

FIXED ASSETS:

· Factory Building

· Office Building

· Staff Quarters

· Plant and Machinery

· Furniture and Fixture

· Electric Fitting

· Cad Systems

· Show Last and Moulds

· Office Equipment

· Vehicles

· Air Conditioners

WEBSITE DETAILS:

PROFILE:

Suri Group has been engaged in the Leather Products Sector for the last 5 decades. In the early days, when the country was looking for enterprising young people, the Suri brothers, set up a small business manufacturing industrial leather. Dedication, hard work and 100% commitment led to a steady growth of the group, which over the years developed a very wide products base. Today the group is engaged in manufacture of Industrial leather, Saddlery and harness, Bicycle Saddles, Shoe Uppers, Shoes and Leather Goods. From a humble beginning with a work force of 5, today the group has the support of 1150 dedicated and skilled workers who are its main assets. The group turnover is USD 20 million.

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.49.25
UK Pound	1	Rs.77.45
Euro	1	Rs.64.89

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	YES
--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.