MIRA INFORM REPORT

Report Date :

30.03.2012

IDENTIFICATION DETAILS

Name :	EASTERN CHROME TANNING CORPORATION PRIVATE LIMITED
Formerly Known As :	EASTERN CHROME TANNING CORPORATION (UNLIMITED)
Registered Office :	29 (Old No.12), College Road, Nugambakkam, Chennai – 600 006, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	21.11.2001
Com. Reg. No.:	18-048052
Capital Investment / Paid-up Capital :	Rs.20.000 Millions
CIN No.: [Company Identification No.]	U19111TN2001PLC048052
TAN No.: [Tax Deduction & Collection Account No.]	CHEE02414G
TIN No.:	33800461129
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of cow leather, goat leather, leather shoes, finished shoes, shoe uppers.
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 206000
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 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/ Corporate Office :	29 (Old No.12), College Road, Nugambakkam, Chennai – 600 006, Tamilnadu, India
Tel. No.:	91-44-28231104 (5 Lines)
Fax No.:	91-44-28210874/ 28231934
E-Mail :	corporate@kargrp.com ameen@kargrp.com
Website :	www.kargrp.com
Factory :	M.C. Road, Solur Village, Ambur – 635 802, Vellore District, Tamilnadu, India
Tel. No.:	91-4174-249012-13

DIRECTORS

As on 30.09.2010

Name :

Mr. Kandrikar Ehsan Ahmed

Designation :

Managing Director

Address :

5/3, Anderson Road, Chennai – 600 006, Tamilnadu, India

Date of Birth/Age :

13.04.1978

Date of Appointment :

11.12.2001

DIN No.:

00247285

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	U18209JK1986PTC002898	Unico Leather Product Private Limited	Managing director	15-02-00	15-02-00	Active	NO
2	U19111TN2001PTC048052	Eastern Chrome Tanning Corporation Private Limited	Managing director	11-12-01	11-12-01	Active	NO
3	U19115TN2006PTC059726	Flora Leather Fashions Private Limited	Director	05-05-06	05-05-06	Active	NO

Name :

Mrs. Kandrikar Thaseen Fathima

Designation :

Whole Time Director

Address :

16/44 Barnaby Road, Kilpauk, Chennai – 600 010, Tamilnadu, India

Date of Birth/Age :

31.07.1969

Date of Appointment :

11.12.2001

DIN No.:

00390132

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	U18209TN1987PTC014898	Floram Shoes (India) Private Limited	Director	13-09-90	13-09-90	Active	NO
2	U19111TN2001PTC048052	Eastern Chrome Tanning Corporation Private Limited	Whole-time director	11-12-01	11-12-01	Active	NO
3	U19201TN1985PTC011880	Flora Footwear Private Limited	Director	07-01-02	07-01-02	Active	NO

Name :

Mrs. Thadey Mohamadi Begum

Designation :

Director

Address :

5/3, Anderson Road, Chennai – 600 006, Tamilnadu, India

Date of Birth/Age :

29.04.1951

Date of Appointment :

11.12.2001

DIN No.:

00241950

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	U18209TN1987PTC014898	Floram Shoes (India) Private Limited	Director	22-09-87	22-09-87	Active	NO
2	U19111TN2001PTC048052	Eastern Chrome Tanning Corporation Private Limited	Director	11-12-01	11-12-01	Active	NO
3	U19201TN1978PTC007590	Florind Shoes Private Limited	Director	11-01-02	11-01-02	Active	NO
4	U19116TN2006PTC059768	Florind Uppers Private Limited	Director	10-05-06	10-05-06	Active	NO

KEY EXECUTIVES

Name :	D. Mohana Sundaram
Designation :	Practicing Company Secretary
Address :	Chithra Durga, No.14, Vivekananda Street, Radha Nagar, Chromopet, Chennai – 600 044, Tamilnadu, India

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Begum Mohamadi Thadey	190000
Fathima Thaseen Kandrikar	150000
Maryam Lubna Kandrikar	150000
Mansoor Shahid Kandirkar	190000
Akmal Mohamed Kandrikar	190000
Ahmed Ehsan Kandrikar	190000
Rahman Ameenur Kandirkar	190000
Mashkura Thadey	190000
Fathima Naaz	190000
Asfia S.	190000
Ahmed Shafeeq N.	90000
Rahman Hafeezur Kandrikar	90000
Total	2000000

As on 30.09.2010

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

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of cow leather, goat leather, leather shoes, finished shoes, shoe uppers.

Products :

Item Code No.	Product Description
319913000	Shoes Uppers

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Actual Production
Shoe Upper	545256 Pairs
Leather (In Pcs) (including purchase)	504162
Finished Leather	329377 Pairs

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

v State Bank of India, Leather International Branch, Kilpauk, Chennai – 600 010, Tamilnadu, India

v ABN Amro Bank

v Indian Bank

Facilities :

Secured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
State Bank of India – Current Account	13.903	0.000
Packing Credit	57.255	60.010
SLC	0.000	20.030
Total	71.158	80.040

Unsecured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
From Directors, shareholders and relatives	8.679	8.679
Total	8.679	8.679

Banking Relations :	--
Auditors :
Name :	R. Venkataramani and Associates Chartered Accountants
Address :	No.13 (Old No.7) Thiru VI KA, Third Street, Royapettah High Road, Mylapore, Chennai – 600 004, Tamilnadu, India
Tel. No.:	91-44-24993679
PAN No.:	AADER1923Q
KAR Group Companies :	v United India Shoe Corporation Private Limited v Florind Shoes Private Limited v Floram Shoes (India) Private Limited v UNICO Leather Products Private Limited v Flora Footwear Private Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		20.000	20.000	20.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		31.505	26.866	32.307
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		51.505	46.866	52.307
LOAN FUNDS
1] Secured Loans		71.158	80.040	103.225
2] Unsecured Loans		8.679	8.679	3.500
TOTAL BORROWING		79.837	88.719	106.725
DEFERRED TAX LIABILITIES		2.966	3.258	4.588
SIDBY SUBSIDY		3.500	3.500	0.000
TOTAL		137.808	142.343	163.620
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		37.480	41.971	47.920
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.440	0.440	0.440
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	91.897	307.514	619.952
	Sundry Debtors	20.654	27.108	14.701
	Cash & Bank Balances	23.344	19.563	20.845
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	440.115	261.488	32.106
Total Current Assets		576.010	615.673	687.604
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	463.997	505.362	563.762
	Others Current Liabilities	0.046	0.000	0.000
	Provisions	12.079	10.379	8.582
Total Current Liabilities		476.122	515.741	572.344
Net Current Assets		99.888	99.932	115.260
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		137.808	142.343	163.620

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	899.801	1605.734	1776.922
		Other Income	56.206	10.870	12.687
		TOTAL (A)	956.007	1616.604	1789.609
Less	EXPENSES
		Consumption of Raw Materials	784.529	1342.443	1478.795
		Manufacturing Expenses	114.385	225.797	250.999
		Repairs and Maintenance	9.988	13.257	13.307
		Administrative Expenses	14.809	11.941	13.492
		Selling and Distribution Expenses	7.472	1.897	8.496
		TOTAL (B)	931.183	1595.335	1765.089
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		24.824	21.269	24.520
Less	FINANCIAL EXPENSES (D)		13.726	13.878	13.399
	PROFIT/ (LOSS)BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		11.098	7.391	11.121
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.557	6.361	7.328
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		5.541	1.030	3.793
Less	TAX (H)		0.902	3.976	1.076
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		4.639	(2.946)	2.717
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		26.865	29.811	27.094
	BALANCE CARRIED TO THE B/S		31.504	26.865	29.811
	EARNINGS IN FOREIGN CURRENCY
		Export of goods F.O.B. basis	122.023	124.141	181.982
	TOTAL EARNINGS		122.023	124.141	181.982
	IMPORTS
		Consumables	85.104	74.969	53.117
		Leather	188.802	482.127	385.497
		Tanning Chemicals	0.000	0.000	49.109
	TOTAL IMPORTS		273.906	557.096	487.723
	Earnings/ (Loss) Per Share (Rs.)		2.32	(1.47)	1.36

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.49	(0.18)	0.15
Net Profit Margin (PBT/Sales)	(%)	0.62	0.06	0.21
Return on Total Assets (PBT/Total Assets}	(%)	0.90	0.16	0.52
Return on Investment (ROI) (PBT/Networth)		0.11	0.02	0.07
Debt Equity Ratio (Total Liability/Networth)		10.79	12.90	12.98
Current Ratio (Current Asset/Current Liability)		1.21	1.19	1.20

LOCAL AGENCY FURTHER INFORMATION

FORM 8:

This form is for

Modification of charge

Charge identification number of the modified

90293969

Corporate identity number of the company

L19111TN2001PLC048052

Name of the company

EASTERN CHROME TANNING CORPORATION (UNLIMITED)

Address of the registered office or of the principal place of business in India of the company

No.12 College Road, Chennai - 600 006, Tamilnadu, India

Type of charge

Book Debts

Movable Property

Immovable Property

Particular of charge holder

Name :	State Bank of India
Address :	Leather International Branch, Kilpauk, Chennai – 600010, Tamilnadu, India
Email :	dgm07024@sbi.co.in

Nature of description of the instrument creating or modifying the charge

FORM C.1-A (Supplemental Agreement of loan for increase in the overall limit)

FORM C.2-A (Supplemental Agreement of Hypothecation of goods and assets for increase in the overall limit)

FORM C.5) Letter regarding the grant of individual limits within the overall limit).

Date of instrument Creating the charge

28.11.2006

Amount secured by the charge

Rs.312.500 Millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest - As per page 3 of the sanctioned letter dated 13.11.2000 enclosed, which is duly accepted.

Terms of Repayment - Repayable on Demand

Facility Available for a period of 36 months subject to annual review.

Margin - 25 % on Raw Material, SIP, Finished Goods and 5 % on Letter of credit and Bank Guarantee.

Extent and Operation of the charge - Hypothecation of stocks of RM, SIP, FG, consumables, stores, spares etc. backed by export order, documents of title goods and extension of charge on current assets and hypothecation of companies' plant and machinery.

Short particulars of the property charged

Hypothecation of stocks of RM, SIP, FG, consumables, stores, spares etc. backed by export order, documents of title goods and extension of charge on current assets and hypothecation of companies' plant and machinery.

Date of latest modification prior to the present modification

25.05.2006

Particulars of the present modification

The Limit Enhanced to Rs.312.500 millions.

FIXED ASSETS:

v Building

v Plant and machinery

v Computer

v Vehicles – heavy and light

v Furniture and fittings

v Electrical installation

v Air conditioners

v Fire fighting equipment

v Office equipment

v Effluent treatment plant

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.51.15
UK Pound	1	Rs.81.41
Euro	1	Rs.68.22

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	YES
--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.