MIRA INFORM REPORT

Report Date :

24.02.2012

IDENTIFICATION DETAILS

Name :	ALVIN LEATHER CRAFTS PRIVATE LIMITED
Registered Office :	D-10 Panki Industrial Area, Site No. 1 Panki, Kanpur 208022, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.09.1990
Com. Reg. No.:	012309
Capital Investment / Paid-up Capital :	Rs.1.500 millions
CIN No.: [Company Identification No.]	U129201UP1990PTC012309
TAN No.: [Tax Deduction & Collection Account No.]	KNPA01257E
PAN No.: [Permanent Account No.]	AABCA4262C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacture of Leather Soles with Mesonite Heels, Leather Inserted PVC, Soles, Double Colour TPR Soles, PVC Soles (Sprayed two tone), Moulded , Insoles, Welts, Moulds, ABS Heel.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 144312
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 for small to mediocre 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 – 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 :	D-10 Panki Industrial Area, Site No. 1 Panki, Kanpur 208022, Uttar Pradesh, India
Tel. No.:	91-512-2692219
Fax No.:	91-512-22692220
E-Mail :	alakh7@gmail.com info@alvinleather.com

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Vikram Seth
Designation :	Director
Date of Birth/Age :	27.07.1967
Date of Appointment :	21.09.1990
DIN No.:	02016325

OTHER DIRECTORSHIP

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U19201UP1990PTC012309	Alvin Leather Crafts Private Limited	Director	21/09/1990	21/09/1990	-	Active	NO
2	U17121UP1995PLC018414	Alvin Cotspin Limited	Director	17/07/1995	17/07/1995	-	Active	NO
3	U51109UP1990PTC012381	Safety Traders Private Limited	Director	19/02/1998	19/02/1998	-	Active	NO
4	U25201UP1994PTC016308	Alvin Cements Private Limited	Additional director	26/11/2007	26/11/2007	-	Active	NO
5	U26102UP1979PTC004722	Bitufelt Private Limited	Director	15/06/2009	15/06/2009	-	Active	NO

Name :	Mrs. Alka Seth
Designation :	Director
Date of Birth/Age :	17.01.1964
Date of Appointment :	21.09.1990
DIN No.:	02003864

OTHER DIRECTORSHIP

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U19201UP1990PTC012309	Alvin Leather Crafts Private Limited	Director	21/09/1990	21/09/1990	-	Active	NO
2	U17121UP1995PLC018414	Alvin Cotspin Limited	Director	30/09/2011	25/08/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
P N Seth - HUF	100
Sushila Seth	10800
Vinay Seth	35950
Alka Seth	20450
Vikram Seth	35125
Deepti Seth	24300
Safety Traders Private Limited, Kanpur	20000
Rahul Seth	3175
Vinay Seth – HUF	100
Total	150000

AS ON 30.09.2011

Equity Share Breakup		Percentage of Holding
Category
Bodies corporate		13.33
Directors or relatives of directors		86.67
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacture of Leather Soles with Mesonite Heels, Leather Inserted PVC, Soles, Double Colour TPR Soles, PVC Soles (Sprayed two tone), Moulded , Insoles, Welts, Moulds, ABS Heel.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India

· Indian Overseas Bank

· IDBI Be nk

· Punjab National Bank

Facilities :

Rs. In Millions

SECURED LOAN	31.03.2011	31.03.2010
Interest Accrued but Not Due on LIC Loan	0.017	0.017
Total	0.017	0.017
UNSECURED LOAN
From Shareholders
Safety Traders (P) Limited	13.697	12.722
Deepti Seth	0.000	0.871
Vikram Seth	0.504	0.375
P N Seth – HUF	0.208	0.408
Sushila Seth	0.000	0.204
Alka Seth	0.297	0.000
Total	14.708	14.580

Banking Relations :	--
Auditors :
Name :	A Kay Mehra and Company Chartered Accountant
Address :	120/128 Lajpat Nagar, Kanpur 208005, Uttar Pradesh, India
Associates/Subsidiaries :	· Alvin Cotspin Limited · Bonded Packaging Private Limited · Safety Traders Private Limited · Laxmi Traders

CAPITAL STRUCTURE

AS ON 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
150000	Equity Shares	Rs. 10 each	Rs.1.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
150000	Equity Shares	Rs. 10 each	Rs.1.500 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		1.500	1.500	1.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		34.578	28.351	20.434
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		36.078	29.851	21.934
LOAN FUNDS
1] Secured Loans		0.017	0.017	0.585
2] Unsecured Loans		14.708	14.580	17.661
TOTAL BORROWING		14.725	14.597	18.246
DEFERRED TAX LIABILITIES		0.000	0.000	0.384
TOTAL		50.803	44.448	40.564
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		30.527	31.743	28.385
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.086	0.084	0.086
DEFERREX TAX ASSETS		0.699	0.477	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	9.569	6.335	3.170
	Sundry Debtors	19.586	13.658	9.099
	Cash & Bank Balances	2.965	0.786	3.699
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	9.938	5.858	5.315
Total Current Assets		42.058	26.637	21.283
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	14.578	9.955	5.682
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	7.989	4.538	3.506
Total Current Liabilities		22.567	14.493	9.188
Net Current Assets		19.491	12.144	12.095
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		50.803	44.448	40.564

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales	81.653	57.912	51.175
		Other Income		11.875	13.274
		TOTAL (A)	81.653	69.787	64.449
Less	EXPENSES
		Cost of Materials		21.897	21.459
		Manufacturing Expenses		14.474	14.413
		Excise Duty Paid		2.207	3.327
		Vat / Cst Paid		2.367	1.936
		Payment to and provision for employee and workers including EPF and other funds	66.730	4.840	4.409
		Payment to Auditors		0.019	0.016
		Directors Remuneration		1.500	1.500
		Increase/(Decrease) in Finished Goods		0.189	0.050
		Selling and Distribution Expenses		2.846	0.862
		Administrative Expenses		3.003	2.912
		TOTAL (B)	66.730	53.342	50.884
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		14.923	16.445	13.565
Less	FINANCIAL EXPENSES (D)		1.424	1.408	1.531
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		13.499	15.037	12.034
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.351	4.311	3.759
	PROFIT BEFORE TAX (E-F) (G)		9.148	10.726	8.275
Less	TAX (H)		2.921	2.809	2.688
	PROFIT AFTER TAX (G-H) (I)		6.227	7.917	5.587
	IMPORTS
		Raw Materials	1.768	0.836	0.625
		Stores & Spares	0.000	0.020	0.000
		Capital Goods	0.107	1.505	1.505
	TOTAL IMPORTS		1.875	2.361	2.130
	Earnings Per Share (Rs.)		41.51	--	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	7.62	11.34	8.66
Net Profit Margin (PBT/Sales)	(%)	11.20	18.52	16.17
Return on Total Assets (PBT/Total Assets}	(%)	12.60	18.37	16.66
Return on Investment (ROI) (PBT/Networth)		0.25	0.35	0.37
Debt Equity Ratio (Total Liability/Networth)		1.03	0.97	1.26
Current Ratio (Current Asset/Current Liability)		1.86	1.83	2.31

LOCAL AGENCY FURTHER INFORMATION

OPERATIONAL RESULT:

The company has generated an income of Rs. 81.653 millions from its new activity as compared to the previous year income of Rs. 69.787 millions and earned a profit of Rs. 6.227 millions as compared to the previous year profit of Rs. 7.917 millions. The directors are trying to improve the performance of the company and hop for better results in the next financial years.

FIXED ASSETS:

· Land

· Factory Building

· Plant and Machinery

· Dies and Moulds

· Electric Installation

· Office Equipments

· Pollution Control Equipments

· Cycles

· Air Conditioners

· Computers

NOTE:

Registered office of the company has been shifted from 117 / 354 G T Road P O Naveen Nagar, Kanpur 208025, Uttar Pradesh, India to the present address w.e.f. 29.07.2008

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.49.24
UK Pound	1	Rs.77.19
Euro	1	Rs.65.29

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	4
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	6
--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		46

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.