MIRA INFORM REPORT

Report Date :

16.04.2013

IDENTIFICATION DETAILS

Name :	MIRZA INTERNATIONAL LIMITED

Registered Office :	14/6 Civil Lines, Kanpur- 208001, Uttar Pradesh

Country :	India

Financials (as on) :	31.03.2012

Date of Incorporation :	05.09.1979

Com. Reg. No.:	20-004821

Capital Investment / Paid-up Capital :	Rs. 185.400 Millions

CIN No.: [Company Identification No.]	L19129UP1979PLC004821

Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

Line of Business :	Manufacturing and Marketing of Leather and Leather Footwear.

No. of Employees :	2611 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 8272000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is an established company having a good track record. Financially company seems to be strong. Performance capacity appears to be high. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered for normal business dealings at usual trade terms and condition.

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

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating: A-
Rating Explanation	This rating indicates having adequate degree of safety regarding timely servicing of financial obligation it carry low credit risk.
Date	October 08, 2012

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/ Head Office :	14/6, Civil Lines, Kanpur – 208 001, Uttar Pradesh, India
Tel. No.:	91-512-2530775/ 844/ 676
Fax No.:	91-512-2530166/ 2534301
E-Mail :	dcpandey@redtapeindia.com mirzaknp@satyam.net.in
Website :	http://www.mirza.co.in

Corporate and Marketing Office :	A-7, Mohan Cooperative Industrial Estate, Mathura Road, New Delhi – 110 044, Delhi, India
Tel. No.:	91-11-26959553/ 9554
Fax No.:	91-11-26959559/ 0499

Factory 1 :	Kanpur – Unnao Link Road, Magarwara, Unnao – 209 801, Uttar Pradesh, India

Factory 2 :	Kanpur – Unnao Link Road, Sahjani, Unnao – 209 801, Uttar Pradesh, India

Factory 3 :	UPSIDC Industrial Area, Site II, Unnao – 209 801, Uttar Pradesh, India

Factory 4 :	C-4, 5, 36 and 37, Sector – 59, Noida – 201 303, Uttar Pradesh, India

Factory 5 :	1A, Sector-Ecotech- I, Extension- I, Greater Noida – 201 308, Uttar Pradesh, India

DIRECTORS

As on 31.03.2012

Name :	Mr. Irshad Mirza
Designation :	Chairman

Name :	Mr. Rashid Ahmed Mirza
Designation :	Managing Director
Date of Birth/Age :	56 Years
Qualification :	Diploma in Leather Technology, London
Experience :	36 Years

Name :	Mr. Shahid Ahmad Mirza
Designation :	Whole- time Director
Date of Birth/Age :	55 Years
Qualification :	Diploma in Leather Goods Technology, U.K
Experience :	33 Years

Name :	Mr. Tauseef Ahmad Mirza
Designation :	Whole- time Director
Date of Birth/Age :	43 Years
Qualification :	Diploma in Shoe Technology, London
Experience :	23 Years

Name :	Mr. Tasneef Ahmad Mirza
Designation :	Whole- time Director
Date of Birth/Age :	40 Years
Qualification :	Degree in Leather Technology, London
Experience :	15 Years
Date of Appointment :	01.01.1997
Other Directorships :	Shoemax Engineering Limited Shoemac Leather Tech Engineers Limited Emgee Projects Private Limited Mirza Holdings Private Limited Red Tape International Private Limited Azad Multispeciality Hospitals and Research Centre Limited Mirza Agrotech Private Limited

Name :	Mr. N.P. Upadhyay
Designation :	Whole- time Director

Name :	Dr. Yashveer Singh
Designation :	Director
Date of Birth/Age :	65 Years
Qualification :	M.SC., M. Phil, PhD
Date of Appointment :	06.02.2012

Name :	Mr. Pashupati Nath Kapoor
Designation :	Director
Date of Birth/Age :	74 Years
Qualification :	B. Tech (Mech) IIT and M.S. (Mech), Chicago, USA
Date of Appointment :	08.07.1994

Name :	Mr. Qazi Noorus Salam
Designation :	Director

Name :	Mr. Sudhindra Jain
Designation :	Director
Date of Birth/Age :	56 Years
Qualification :	M. Com., LL.B, FCA
Date of Appointment :	30.07.2008
Other Directorships :	Rajdhani Leasing and Industries Limited

Name :	Mr. Subhash Sapra
Designation :	Director

Name :	Mr. Islamul Haq
Designation :	Director

KEY EXECUTIVES

Name :	Mr. D.C. Pandey
Designation :	Vice President (Accounts) and Company Secretary

SHAREHOLDING PATTERN

As on 31.03.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	60155981	64.89
Sub Total	60155981	64.89
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	1000000	1.08
Sub Total	1000000	1.08
Total shareholding of Promoter and Promoter Group (A)	61155981	65.97
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	5500	0.01
Financial Institutions / Banks	41500	0.04
Sub Total	47000	0.05
(2) Non-Institutions
Bodies Corporate	3575819	3.86
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	21505119	23.20
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	5470402	5.90
Any Others (Specify)	951679	1.03
Non Resident Indians	888647	0.96
Trusts	2500	0.00
Clearing Members	60532	0.07
Sub Total	31503019	33.98
Total Public shareholding (B)	31550019	34.03
Total (A)+(B)	92706000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	92706000	0.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Marketing of Leather and Leather Footwear.

Products :

Item Code No. (ITC Code)	410799
Product Description	Finished Leather
Item Code No. (ITC Code)	640610
Product Description	Shoe Uppers
Item Code No. (ITC Code)	640351
Product Description	Shoes

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Actual Production
Chrome Leather	Sq. Mtr.	*756427
Footwear	Pair	3103933
Shoe Uppers	Pair	3265560

(Figures in lacs)

Particulars	Unit	Licensed Capacity (As per LI/Licence)	Installed Capacity	*Actual Production
Footwear	Pairs	N.A.	48.00	31.04
Chrome Leather	Sq. Mtr.	N.A.	--	7.56

* Represents final production for sale and does not include intermediate products consumed for down stream production. Installed capacity figures are as certified by the Management and being a matter of technical nature not verified by the auditors. These have been expressed in units of quantities in which licences have been issued except in case of leather where it has been expressed in Sq.Mtrs. Which, in the opinion of the Management, is the appropriate unit of quantity.

GENERAL INFORMATION

No. of Employees :

2611 (Approximately)

Bankers :

Punjab National Bank, The Mall, Kanpur, Uttar Pradesh, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Term Loans
From Bank*	453.800	347.500
From Bank (Auto Loan)#	0.900	4.200
From Others (Auto Loan)#	3.900	0.000
SHORT TERM BORROWINGS
Loans Repayable on Demand*
From Banks	1024.000	839.400
Total	1482.600	1191.100

Notes:

LONG TERM BORROWINGS

* Secured by 1^st Charge on Fixed Assets, created out of various Term Loans and block of assets charged to the bank from time to time for Term Loans and extension of charge on all current assets. Equitable mortgage of Land, Building, Plant and Machinery at Company’s Unit No.1 and 2, Kanpur Unnao Link Road, Unnao, Unit No. 3-C-4,5, 36 and 37 Sector 59, Noida and Unit No. 6 at Plot No. 1A Sector Ecotech-1, Greater Noida Industrial Area, Gautam Budh Nagar, U.P. These are guaranteed by Directors (Total Guarantee provided by directors are of Rs.3387.500 millions).

# Secured against the assets purchased under the arrangements.

(Rs. in Millions)

Maturity Profile Current Year :	1-2 years	2-3 years	3-4 years
Term Loans from Banks
Secured
Term Loan	125.000	225.000	103.800
Auto Loan	0.900	--	--
Total	125.900	225.000	103.800
Term Loans from Others
Secured
Auto Loan	2.400	1.500	--
Total	2.400	1.500	--

SHORT TERM BORROWINGS

* Secured By 1^st Charge by way of Hypothecation on entire current assets, present and future including entire stocks of raw materials, stock in process, finished goods, stock-in-transit, domestic Book Debts, Loans and advances or any other security required for the purpose of execution of export orders received, lying in the Company’s godowns, warehouses or shipping agents’ custody waiting dispatch/ shipment/ and / or in transit etc.

All the above secured Loans are guaranteed by Directors (Total Guarantee provided by directors are of Rs 3387.500 millions)


Banking Relations :	--

Auditors :	Khamesra Bhatia and Mehrotra Chartered Accountants

Cost Auditors :	Mr. A.K. Srivastava Cost Accountant

Secretarial Auditors :	Savita Jyoti Associates Company Secretaries

Associate Company (As on 31.03.2011) :	Mirza (UK) Limited

Related Companies (As on 31.03.2011) :	Euro Footwear Limited Shoemax Engg. Limited Achee Shoes Private Limited Emgee Projects Private Limited Mirza Holdings Private Limited Mirza Agrotech Private Limited Genesis Infra Projects Private Limited Gemini Products Limited Red Tape International Private Limited Shoemac Leather Tech Engineers Limited Mayfair Leather Exports Limited Azad Multispeciality Hospital and Research Centre Private Limited

Related Parties/Firms (As on 31.03.2011) :	Mirza Projects Genesis International Mars International Genesis Developers Genesis River View Resorts LLP

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
225000000	Equity Shares	Rs.2/- each	Rs.450.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
92706000	Equity Shares	Rs.2/- each	Rs.185.400 millions

Note:

The reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period

Particulars	Equity Shares		Preference Shares
Particulars	Number	Rs. in Millions	Number	Rs. in Millions
Shares outstanding at the beginning of the year	92706000	185.400	-	-
Shares Issued during the year	-	-	-	-
Shares bought back during the year	-	-	-	-
Shares outstanding at the end of the year	92706000	185.400	-	-

The details of Shareholders holding more than 5% shares

Name of Shareholder	As at 31^st March, 2012
Name of Shareholder	No. of Shares	% of Holding
Irshad Mirza	7193541	7.76%
Tauseef Ahmad Mirza	6944000	7.49%
Tasneef Ahmad Mirza	7728650	8.34%
Yasmin Mirza	11300850	12.19%

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		185.400	185.400	185.412
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1882.500	1600.100	1259.024
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2067.900	1785.500	1444.436
LOAN FUNDS
1] Secured Loans		1482.600	1191.100	1042.674
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		1482.600	1191.100	1042.674
DEFERRED TAX LIABILITIES		183.000	174.000	173.000

TOTAL		3733.500	3150.600	2660.110

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		2247.700	1877.800	1680.606
Capital work-in-progress		165.200	158.400	51.503

INVESTMENT		7.000	10.000	9.004
DEFERRED TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1274.400	1047.200	791.774
	Sundry Debtors	369.600	312.200	323.674
	Cash & Bank Balances	119.700	48.000	17.938
	Other Current Assets	295.200	284.300	178.144
	Loans & Advances	108.800	73.600	68.600
Total Current Assets		2167.700	1765.300	1380.130
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	344.400	302.200	247.753
	Other Current Liabilities	394.800	252.200	127.633
	Provisions	114.900	106.500	85.747
Total Current Liabilities		854.100	660.900	461.133
Net Current Assets		1313.600	1104.400	918.997

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		3733.500	3150.600	2660.110

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from Operations	5565.300	4844.400	3788.931
		Other Income	3.200	12.500	11.376
		TOTAL	5568.500	4856.900	3800.307

Less	EXPENSES
		Cost of materials consumed	2139.100	1765.400	3270.551
		Purchases of Stock-in-Trade	1324.100	1198.400
		Changes in inventories of finished goods work-in-progress and Stock-in-Trade	(181.300)	(168.400)
		Employee benefits expense	288.400	248.900
		Other Expenses	1120.000	964.300
		Prior Year Adjustment - Depreciation	0.000	6.700
		Extraordinary Items	(62.100)	(38.900)
		TOTAL	4628.200	3976.400	3270.551

	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		940.300	880.500	529.756

Less	FINANCIAL EXPENSES		272.000	174.300	139.681

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		668.300	706.200	390.075

Less/ Add	DEPRECIATION/ AMORTISATION		152.700	131.300	114.002

	PROFIT BEFORE TAX		515.600	574.900	276.073

Less	TAX		162.500	183.000	94.323

	PROFIT AFTER TAX		353.100	391.900	181.750

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		911.200	613.400	NA

Less	APPROPRIATIONS
		Transfer to General Reserve	40.000	40.000	NA
		Proposed Dividend	46.400	46.400	NA
		Tax on Dividend	7.500	7.700	NA
	BALANCE CARRIED TO THE B/S		1170.400	911.200	NA

	EARNINGS IN FOREIGN CURRENCY
		FOB value of exports	3622.200	3123.800	2624.524
	TOTAL EARNINGS		3622.200	3123.800	2624.524

	IMPORTS
		Raw Materials and Stock-in-Trade	410.800	515.800	330.446
		Stores, Chemicals and Packing Materials	23.500	15.200	10.078
		Capital Goods	149.100	131.900	49.685
	TOTAL IMPORTS		583.400	662.900	390.209

	Earnings Per Share (Rs.)		3.81	4.23	2.03

QUARTERLY RESULTS

PARTICULARS	30.06.2012 (1^st Quarter)	30.09.2012 (2^nd Quarter)	31.12.2012 (3^rd Quarter)
Net Sales	1419.600	1667.400	1675.200
Total Expenditure	1225.500	1334.900	1392.900
PBIDT (Excl OI)	194.200	332.500	282.400
Other Income	0.000	0.000	48.200
Operating Profit	194.200	332.500	330.600
Interest	73.700	83.400	84.900
Exceptional Items	0.000	0.000	0.000
PBDT	120.400	249.100	245.600
Depreciation	50.400	47.700	50.200
Profit Before Tax	70.100	201.400	195.400
Tax	23.400	67.400	61.100
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	46.700	134.000	134.300
Extraordinary Items	0.000	0.000	7.700
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	46.700	134.000	142.100

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	6.34	8.07	4.78

Net Profit Margin (PBT/Sales)	(%)	9.26	11.87	7.29

Return on Total Assets (PBT/Total Assets}	(%)	11.68	15.78	9.02

Return on Investment (ROI) (PBT/Networth)		0.25	0.32	0.19

Debt Equity Ratio (Total Debt/Networth)		0.72	0.67	0.72

Current Ratio (Current Asset/Current Liability)		2.54	2.67	2.99

LOCAL AGENCY FURTHER INFORMATION

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	Yes
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	Yes

PERFORMANCE OF THE COMPANY

FY 2011-12 was the challenging year for the Company as global economy in general, and Euro Zone in particular, witnessed lower economic growth coupled with rising inflation fueled by higher interest rates and higher oil prices. Company's margin were impacted due to higher cost of major input items like raw hide and chemicals and also on account of increased cost of finance. But despite such stringent external challenges, the Company performed reasonably well and the highlights of the performance are as under:

• The revenue from operations increased by 15% to Rs.5568.500 Millions.

• The EBITDA increased to Rs.878.200 Millions as against Rs.841.600 Millions in the last year.

• Export increased by 16% to Rs.3622.200 Millions.

• The revenue from Domestic Market increased by 22% to Rs.1450.200 Millions.

• The Profit before Tax decreased by 12 % to Rs.515.600 Millions.

• The Cash Profit decreased by 5 % to Rs.502.400 Millions.

• The Net Profit decreased by 11 % to Rs.353.100 Millions.

EXPANSION PROGRAMME

In previous report, the plan to enhance the existing production capacities are at advanced stage of implementation. The production at newly set up ultra modern Shoe Unit of Greater Noida was started and capacities at other Shoe Unit are also being enhanced as planned. This will further augment the overall production volume and also efficiency levels to improve profitability.

MANAGEMENT DISCUSSION AND ANALYSIS

Industry Structure and Developments

In India, Leather Industry occupies a valuable place among all the industries of the economy. This sector is known for its high export earnings and generation of employment opportunities to about 2.5 million people of the country. The Government policies on leather and leather export products started changing from 1974 and priorities were given for export of value added goods. From the year 1991 onwards only finished leather were exported and export of raw or semi finished leather was banned. Many tanners started setting up factories for manufacturing leather products after 1991-92 like shoe uppers, shoes, garments and leather goods. Similarly many shoe and garment manufacturers began to seek backward linkage, by taking on lease or setting up tanneries. This is a unique development in India, a tanner becoming product maker and the product sector setting up tanneries or leasing out tanneries. At the same, as incentive to the exporters, the import duties on capital goods have been reduced. Until 2002, the leather sector was reserved for small scale sector and this may have prevented Foreign Direct Investment (FDI) in this sector. Today, the Indian Leather Industry is the second largest producer of footwear and leather garments in the world with growing domestic market for footwear and leather articles which shall lead to further growth and development of the sector.

Export of Leather and Leather products have registered a positive growth in rupee as well as in dollar terms. As per officially notified DGCI&S export data, export of leather and leather products for the first eleven month of 2011-12 i.e. April, 11-February, 12 touched US$ 4508.21 mn as against the export of US$ 3558.23 mn during the same period in previous year.

SEGMENT WISE PERFORMANCE

The Company's business segment is primarily Shoe Division and Tannery Division. During the year, the Shoe Division revenue was Rs.4943.200 millions and Tannery Division revenue was Rs.1442.400 millions.

OUTLOOK

Indian Economy is estimated to grow by 6.9%. The GDP is expected to be about 7.6% for the next financial year 2012-13. The slowdown in the rate of investments and the poor performance by the industrial sector were the major factors for the decline in the rate of GDP of the country. Inflation slowly marked in December 2011 and January 2012 after sustained inflationary pressures over the last two years. Food prices increase were pushing inflation initially, but core inflation has been the main component of overall inflation since September 2010. While food prices fell in December and January, core inflation still remained elevated. Monetary policy was tightened by the Reserve Bank of India (RBI) to control inflation and curb inflationary expectations. The growth rate of investment in the economy is estimated to have registered a significant decline during the current year. The year witnessed a sharp increase in interest rates that resulted in higher costs of borrowings, and other rising costs affecting profitability and, thereby, internal accruals that could be used to finance investment.

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE 3^RDQUARTER ENDED 31^STDECEMBER, 2012

(Rs. in millions)

	Quarter Ended on		9 months Ended on
Particulars	31.12.2012	30.09.2012	31.12.2012
	(Un-audited)	(Un-audited)	(Un-audited)
1. a) Net Sales/Income from Operations	1673.607	1666.847	4759.850
b) Other Operating Income	1.611	0.506	2.344
Total	1675.218	1667.353	4762.194
2. Expenditure
a) Cost of Material consumed	667.643	609.973	1807.934
b) Purchase of stock-in-trade	343.332	385.770	1111.900
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	(30.341)	(80.359)	(161.182)
d) Employee benefit expense	85.062	78.188	242.285
e) Exchange (gain) / loss	(48.188)	14.155	(30.749)
f) Depreciation and amortisalicn expense	50.188	47.701	148.243
g) Other expenditure	327.154	327.130	934.800
Total	1394.850	1362.558	4063.231
3. Profit from operations before other income, finance costs and exceptional items (1-2)	280.368	284.795	706.963
4. Other Income	-	-	-
5. Profit from ordinary activities before finance cost and exceptional items before Interest and Exceptional Items (3+4)	280.368	284.795	708.963
6. Finance costs	84.943	83.402	242.081
7 Profit from ordinary activities after finance costs but before exceptional items	195.425	201.393	486.882
8 Exceptional Items	-	-	-
9. Profit from Ordinary Activities before tax (7+8)	195.425	201.393	466.882
10. Tax expenses	61.114	67.400	151.914
11. Net Profit from Ordinary Activities after tax (9-10)	134.311	133.993	314.968
12. Extraordinary Item (Net of tax expense Rs.)	7.741	-	7.741
13 Prior Year Adjustment	-	-	-
14. Net Profit for the period (11+12-13)	142.052	133.993	322.709
15. Paid-up equity share capital (Face Value of Rs.2/- per Share)	185.412	185.412	185.412
16. Reserve excluding Revaluation Reserves as per Balance sheet of previous accounting year)	-	-	-
19. i Earning Per Share (EPS) (of Rs.2/- each) (not annualised)
a) Basic	1.45	1.45	3,40
b) Diluted	-	-	-
19 ii. Earnings Per Share (after extraordinary items) (of Rs.2/- each) (not annualised)
a) Basic	1.53	1.45	3.48
b) Diluted	-	-	-

Part II

Particulars	Quarter Ended on		9 months Ended on
Particulars	31.12.2012	30.09.2012	31.12.2012
PARTICULARS OF SHAREHOLDING
Public Shareholding
- Number of Shares	31550019	31550019	31550019
- Percentage of shareholding	34 03	34 03	34.03
Promoters and promoter group Shareholding
a) Pledged / Encumbered
- Number of Shares	-	-	-
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	-	-	-
- Percentage of shares (as a % of the total share capital of the Company)	-	-	-
b) Non-encumbered
- Number of Shares	61155981	61155981	61155981
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	100	100	100
- Percentage of shares (as a % of the total share capital of the Company)	65,97	65.97	65,97

PARTICULARS	Quarter ended 31.12.2012
INVESTOR COMPLAINTS

Pending at the beginning of the quarter	0
Received during the quarter	12
Disposed of during the quarter	12
Remaining unsolved at the end of the quarter	0

(Rs. in millions)

Segment wise (primary) Revenue Results and Capital Employed	Quarter Ended on		9 months Ended on
Particulars	31.12.2012	30.09.2012	31.12.2012
Particulars	(Un-audited)	(Un-audited)	(Un-audited)
Segment Revenue
Shoes	1435.727	1473.629	4120.393
Leather	460.307	393.686	1325.012
Others	1.611	0.506	2.344
Total	1897.645	1867.821	5447.749
Less : Inter Seqment Revenue	222.427	200.468	685.555
Income from Operations	1675.218	1667.353	4762.194
Segment Results (Profit before interest & tax)
Shoes	323.065	328.055	864.918
Leather	1.924	12.581	17.687
Others	1.611	0.506	2.344
Total	326.600	341.142	884.949
Less: Interest	84.943	83.402	242.081
- Unallocable expenditure net of other unallocable income	46.232	56.347	175.986
Total Profit Before Tax	195.425	201.393	466.882
Captital Employed (Segment assets less segment liabilities)
Shoes	1911.656	1815.097	1911.656
Leather	441.961	433.460	441.961
Others	44.627	42.654	44.627
Total Capital Employed in segments	2398.244	2291.211	2398.244

Notes:

1. The above financial results have been reviewed and recommended by the Audit Committee and subsequently approved by the Board of Directors at their meeting held on 06^th February, 2013.

2. During the quarter, the Company received 12 complaints, which all were resolved. As such there was no unresolved investor complaint at the end of quarter.

3. Figures for the period have been regrouped wherever necessary in order to make them comparable.

4. The Statutory Auditors have carried out a Limited Review of the above results.

5. Extra Ordinary item shown above amounting to Rs.7.741 millions (net of tax expenses) represents profit on sale of land.

FIXED ASSETS:

Land Freehold
Land Leasehold
Buildings
Machinery
Effluent Treatment Plant
Tools and Shoe Lasts
Furniture and Fixtures
Electrical Installation
Vehicles
Computers

WEBSITE DETAILS:

PRESS RELEASES:

TURNOVER INCREASED BY 17%

NET PROFIT INCREASED BY 9%

The Board of Directors of Mirza International Limited in its meeting held today has taken on record the un-audited financial results of the Company for the third quarter ended on 31^st December, 2012. During the quarter under review, the Company recorded a Gross Income of Rs.1675.200 millions as against Rs.1474.000 millions during the corresponding period in the previous year and thus showing a growth of 14%. Further, during the quarter ended 31^st December, 2012, Company earned Net Profit of Rs.142.100 millions as against Rs.130.900 millions during the corresponding period in the previous year and thus showing a growth of 9%.

Despite gloomy market situation in the global market, Company has been able to show growth in its overall revenue and profitability. Despite steep hike in prices of raw material viz. Raw Hide and other essential chemicals and also increase in finance cost on account of increased borrowings, Company has been able to improve its overall margins by implementing measure of cost cuttings in its operations and higher utilisation of its manufacturing capacities.

On going expansion programme is being implemented as per schedule and Company is expecting to achieve its benefits in years to come.

Recently, Company has been awarded second position in Overall Exports in Footwear segment by Council for Leather Exports for the year 2011-12.

NET PROFIT UP BY 19%

The Board of Directors of Mirza International Limited in its meeting held today has taken on record the un-audited financial results of the Company for the second quarter and half year ended on 30th September, 2012. Despite adverse conditions as prevailing in the overseas market, the Company recorded a Gross Income of Rs.1667.400 millions during the quarter as against Rs.1554.600 millions during the corresponding period in the previous year and thus showing a growth of 7%.

The Gross Revenue for the half year ended on 30^th September, 2012 was achieved at Rs.3087.000 millions as against Rs.2775.100 millions and thus showing an upward growth of 11%. Thus showing the increased customers acceptance of Company's products in the market.

Despite increased prices of major input items viz. Raw Hide and Chemicals and also increased interest cost on account of ongoing expansion plan, the Profit after tax for the quarter ended 30^th September, 2012 were at Rs.134.000 millions as against Rs.112.700 millions for the same period of corresponding year, showing an increase of 19%.

Also the Earning per Share for the quarter has been Rs.1.45 as compared to Rs.1.22 for the corresponding period of previous year and thus showing an increase of 19%.

MIL, a leading Footwear manufacturing Company is maintaining a consistent growth record, is confident to achieve heights in terms of Turnover and Profitability in Coming days.

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 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 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.54.63
UK Pound	1	Rs.83.70
Euro	1	Rs.71.42

INFORMATION DETAILS

Report Prepared by :

SMN

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	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.

MIRA INFORM REPORT

1274.400

369.600

119.700

295.200

108.800

2167.700

344.400

394.800

114.900

854.100

1313.600

Unit