MIRA INFORM REPORT

Report Date :

11.01.2013

IDENTIFICATION DETAILS

Name :	RABIA LEATHER INDUSTRIES PRIVATE LIMITED
Registered Office :	KH Centre, 15/2 College Road, Nungambakkam, Chennai - 600 006 Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	03.05.1985
Com. Reg. No.:	18-011821
Capital Investment / Paid-up Capital :	Rs. 4.800 Millions
CIN No.: [Company Identification No.]	U19129TN1985PTC011821
TAN No.: [Tax Deduction & Collection Account No.]	CHER00234D
PAN No.: [Permanent Account No.]	AAACR1714R
Legal Form :	Private Limited Liability Company
Line of Business :	The Company is engaged in manufacture and sale of Leather products.
No. of Employees :	Not Available

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 1300000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The company is doing well. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

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	ICRA
Rating	Short Term = A3+
Rating Explanation	The moderate credit quality it carry higher credit risk.
Date	24.04.2012

Rating Agency Name	ICRA
Rating	Long Term = BBB
Rating Explanation	The moderate credit quality it carry higher than average credit risk.
Date	24.04.2012

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 :	KH Centre, 15/2 College Road, Nungambakkam, Chennai - 600 006 Tamilnadu, India
Tel. No.:	91-44-26493698 / 2599 / 2645 / 2647 /2648
Fax No.:	91-44-26492524
E-Mail :	wahab.rabia@khindia.com khgroups@vsnl.com
Website :	http://khindia.net
Factory1:	Ranipet Bye Pass Road, Melvisharam, Ranipet, Tamilnadu, India
Factory 2:	6, S P Developed Plots, Guindy, Chennai – 600 042, Tamilnadu, India
Factory 3 :	2, Hunters Road, Choolai, Chennai - 600112, Tamilnadu, India

DIRECTORS

As on 28.09.2012

Name :

Mr. Malack Mohamed Ibrahim

Designation :

Director

Address :

No.6, khizarabad First Street, Melvisharam, Ranipet – 632509, District, Tamilnadu, India

Date of Birth/Age :

14.09.1969

Date of Appointment :

16.03.1998

PAN No.:

[Permanent Account No.]

AAAPI1132P

DIN No.:

00170906

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U18209TN1990PTC019324	G K LEATHER COMPANY PRIVATE LIMITED	Director	21-11-96	21-11-96	12-04-12	Active	NO
2	U18209TN1982PTC009575	K.H.SHOES PRIVATE LIMITED	Director	16-03-98	16-03-98	-	Active	NO
3	U19129TN1985PTC011821	RABIA LEATHER INDUSTRIES PRIVATE LIMITED	Director	16-03-98	16-03-98	-	Active	NO

Name :

Mr. Malack Zakir Hussain

Designation :

Director

Address :

No.8, Mara Street, Melvisharam, Ranipet – 632509, District, Tamilnadu, India

Date of Birth/Age :

12.12.1971

Date of Appointment :

16.03.1998

PAN No.:

[Permanent Account No.]

AAAPH3016K

DIN No.:

00171191

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U18209TN1990PTC019324	G K LEATHER COMPANY PRIVATE LIMITED	Director	21-11-96	21-11-96	12-04-12	Active	NO
2	U18209TN1982PTC009575	K.H.SHOES PRIVATE LIMITED	Director	16-03-98	16-03-98	-	Active	NO
3	U19129TN1985PTC011821	RABIA LEATHER INDUSTRIES PRIVATE LIMITED	Director	16-03-98	16-03-98	-	Active	NO
4	U73100TN1991NPL021372	K.H.FOUNDATION	Director	28-09-12	28-09-12	-	Active	NO

Name :

Mr. Malack Ashraf Ali

Designation :

Director

Address :

No.8, Mara Street, Melvisharam, Ranipet – 632509, District, Tamilnadu, India

Date of Birth/Age :

05.11.1975

Date of Appointment :

16.03.1998

PAN No.:

[Permanent Account No.]

AABPA2579B

DIN No.:

00171300

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U19129TN1985PTC011821	RABIA LEATHER INDUSTRIES PRIVATE LIMITED	Director	16-03-98	16-03-98	-	Active	NO
2	U18209TN1982PTC009575	K.H.SHOES PRIVATE LIMITED	Director	16-03-98	16-03-98	-	Active	NO
3	U18209TN1990PTC019324	G K LEATHER COMPANY PRIVATE LIMITED	Director	24-03-98	24-03-98	12-04-12	Active	NO
4	U18209TN1986PTC013654	K H ARIND PRIVATE LIMITED	Director	01-04-99	01-04-99	-	Active	NO
5	U19116TN2002PTC048843	ZAK LEATHER GARMENTS PRIVATE LIMITED	Director	29-04-02	29-04-02	-	Active	NO
6	U19121TN2006PTC061217	MORINE HANDBAGS PRIVATE LIMITED	Director	01-06-07	01-06-07	19-01-11	Active	NO

Name :

Mr. Malack Abdul Wahab

Designation :

Managing director

Address :

No.8, Mara Street, Melvisharam, Ranipet – 632509, District, Tamilnadu, India

Date of Birth/Age :

10.12.1973

Date of Appointment :

01.03.2009

PAN No.:

[Permanent Account No.]

AAAPW1544K

DIN No.:

00171379

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U18209TN1982PTC009575	K.H.SHOES PRIVATE LIMITED	Director	16-03-98	16-03-98	-	Active	NO
2	U19129TN1985PTC011821	RABIA LEATHER INDUSTRIES PRIVATE LIMITED	Managing director	01-03-09	16-03-98	-	Active	NO
3	U18209TN1990PTC019324	G K LEATHER COMPANY PRIVATE LIMITED	Director	24-03-98	24-03-98	12-04-12	Active	NO
4	U19116TN2002PTC048843	ZAK LEATHER GARMENTS PRIVATE LIMITED	Director	29-04-02	29-04-02	-	Active	NO
5	U19121TN2006PTC061217	MORINE HANDBAGS PRIVATE LIMITED	Director	26-09-06	26-09-06	29-09-10	Active	NO
6	U93090TN1984NPL010934	COUNCIL FOR LEATHER EXPORTS	Additional director	18-12-10	18-12-10	-	Active	NO
7	U19115TN2010PTC078518	H AND S LEATHER CREATIONS PRIVATE LIMITED	Director	22-12-10	22-12-10	-	Active	NO
8	U73100TN1991NPL021372	K.H.FOUNDATION	Director	28-09-12	28-09-12	-	Active	NO

Name :

Mr. Malack Mohamed Thameem

Designation :

Director

Address :

No.8, Mara Street, Melvisharam, Ranipet – 632509, District, Tamilnadu, India

Date of Birth/Age :

21.08.1963

Date of Appointment :

03.05.1985

PAN No.:

[Permanent Account No.]

AABPM0495N

DIN No.:

00171443

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U19129TN1985PTC011821	RABIA LEATHER INDUSTRIES PRIVATE LIMITED	Director	03-05-85	03-05-85	-	Active	NO
2	U18209TN1986PTC013654	K H ARIND PRIVATE LIMITED	Director	06-11-86	06-11-86	-	Active	NO
3	U19119TN1987PTC014484	K H EXPORTS PRIVATE LIMITED	Director	08-06-87	08-06-87	-	Active	NO
4	U18209TN1989PTC016727	K H SHOES ACESSORIES PRIVATE LIMITED	Director	10-01-89	10-01-89	-	Active	NO
5	U18209TN1990PTC019324	G K LEATHER COMPANY PRIVATE LIMITED	Director	20-06-90	20-06-90	12-04-12	Active	NO
6	U18209TN1991PTC020628	K.H.OVERSEAS TRADING COMPANY PRIVATE LIMITED	Director	16-04-91	16-04-91	-	Active	NO
7	U18209TN1982PTC009575	K.H.SHOES PRIVATE LIMITED	Director	16-03-98	16-03-98	-	Active	NO
8	U73100TN1991NPL021372	K.H.FOUNDATION	Director	29-07-98	29-07-98	-	Active	NO

Name :

Mr. Malack Mohamed Hashim

Designation :

Director

Address :

No.8, Mara Street, Melvisharam, Ranipet – 632509, District, Tamilnadu, India

Date of Birth/Age :

01.09.1939

Date of Appointment :

03.05.1985

DIN No.:

00171543

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U18209TN1982PTC009575	K.H.SHOES PRIVATE LIMITED	Director	01-03-09	14-09-82	-	Active	NO
2	U19129TN1985PTC011821	RABIA LEATHER INDUSTRIES PRIVATE LIMITED	Director	03-05-85	03-05-85	-	Active	NO
3	U18209TN1986PTC013654	K H ARIND PRIVATE LIMITED	Managing director	06-11-86	06-11-86	-	Active	NO
4	U19119TN1987PTC014484	K H EXPORTS PRIVATE LIMITED	Director	08-06-87	08-06-87	-	Active	NO
5	U18209TN1989PTC016727	K H SHOES ACESSORIES PRIVATE LIMITED	Director	10-01-89	10-01-89	-	Active	NO
6	U29309TN1989PLC017370	RANIPET TANNERY EFFLUENT TREATMENT COMPANY LIMITED	Director	31-05-89	31-05-89	-	Active	NO
7	U18209TN1991PTC020628	K.H.OVERSEAS TRADING COMPANY PRIVATE LIMITED	Director	16-04-91	16-04-91	-	Active	NO
8	U73100TN1991NPL021372	K.H.FOUNDATION	Director	06-09-92	06-09-92	-	Active	NO
9	U45203TN2002PTC049343	RANIPET INFRASTRUCTURE DEVELOPMENT ORGANISATION PRIVATE LIMITED	Director	31-07-02	31-07-02	-	Active	NO
10	U93090TN1996NPL035469	INDIAN LEATHER INDUSTRY FOUNDATION	Director	24-08-06	24-08-06	-	Active	NO
11	U93000TN2008NPL068574	CHENNAI ENVIRONMENTAL MANAGEMENT COMPANY OF TANNERS	Director	15-07-08	15-07-08	-	Active	NO
12	U19115TN2010PTC078518	H AND S LEATHER CREATIONS PRIVATE LIMITED	Director	22-12-10	22-12-10	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2012

Names of Shareholders	No. of Shares
M. Mohammed Hashim	800
Mohammed Shameem	5900
M. Mohammed Thameem	5900
Mumtaz Begum	20
M. Mohammed Ibrahim	6000
M. Zakir Hussain	5900
M. Ashraf Ali	5900
M. Abdul Wahab	5900
M. Hajira Banu	2950
M. Khutaija Banu	2950
M. Ameerinnisa	2950
Rabia Banu	2830
Total	48000

As on 28.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The Company is engaged in manufacture and sale of Leather products, Mostly Exports

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Leather and International Branch, Mvj Towers, 177/1, P.H. Road, Kilpauk, Chennai - 600010, Tamilnadu, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Term loans from banks	10.303	34.808
Working capital loans from banks	395.718	340.519
Total	406.021	375.327
Footnotes Working Capital Loans Adhoc

Banking Relations :	--
Auditors :
Name :	D. Sampathkumar and Company Chartered Accountants
Address :	5, South Boag Road, T Nagar, Chennai- 600017, Tamilnadu, India
E-Mail :
PAN.:	AAAFD2288D
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	· K H Arind Private Limited · K H Shoes Private Limited · K H Shoes Accessories Private Limited · K H Exports Private Limited · Zak Leather Garments Private Limited · H and S Leather Creations Private Limited
Others (Firms etc) :	· M A Khizar Hussain and Sons · ATH Leder Fabrik · Geekay Leathers · Mumtaz Leathers · K H Retail Stores · Oriental Shoe Fabrik · MMS and Others

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
48000	Equity Shares	Rs.100/- each	Rs.4.800 Millions

Disclosure of shareholding more than five per cent in company

Particular	Number of shares held in company	Percentage of shareholding in company
M Mohamed Shameem	5,900	12.29%
M Mohamed Thameem	5,900	12.29%
M Mohamed Ibrahim	6,000	12.50%
M Zakir Hussain	5,900	12.29%
M Abdul Wahab	5,900	12.29%
M Ashraf Ali	5,900	12.29%
M Hajira Banu	2,950	6.15%
M Khuthaija Banu	2,950	6.15%
M Ameerunnisa	2,950	6.15%
M Rabia Banu	2,830	5.90%

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		4.800	4.800	4.800
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		338.066	268.617	247.235
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		342.866	273.417	252.035
LOAN FUNDS
1] Secured Loans		406.021	375.327	492.787
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		406.021	375.327	492.787
DEFERRED TAX LIABILITIES		52.100	48.800	40.000
TOTAL		800.987	697.544	784.822
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		507.103	476.823	450.367
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.541	0.541	0.541
DEFERREX TAX ASSETS		0.000	0.000	0.000
Non-Other Current Assets		6.141	5.280	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	190.033	248.478	248.385
	Sundry Debtors	138.733	82.619	62.540
	Cash & Bank Balances	22.396	11.596	61.172
	Other Current Assets	68.582	36.760	0.000
	Loans & Advances	286.680	160.007	100.234
Total Current Assets		706.424	539.460	472.331
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	252.064	230.580	100.420
	Other Current Liabilities	141.249	86.785	49.157
	Provisions	25.909	7.195	0.000
Total Current Liabilities		419.222	324.560	149.577
Net Current Assets		287.202	214.900	322.754
MISCELLANEOUS EXPENSES		0.000	0.000	11.160
TOTAL		800.987	697.544	784.822

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	2821.496	2358.956	1969.295
		Other Income
		TOTAL	2821.496	2358.956	1969.295
Less	EXPENSES
		Office Expenses
		Administrative Expenses	2717.639	2316.274	1955.076
		Advertising Expenses
		TOTAL	2717.639	2316.274	1955.076
	PROFIT BEFORE TAX		103.857	42.682	14.219
Less	TAX		34.407	21.300	2.790
	PROFIT AFTER TAX		69.450	21.382	11.429
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	231.836
Less	Deferred Tax Liability		NA	NA	5.500
	BALANCE CARRIED TO THE B/S		NA	NA	237.765
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	2625.737	2157.242	1812.012
	TOTAL EARNINGS		2625.737	2157.424	1812.012
	IMPORTS
		Raw Materials	975.612	360.273	304.391
		Finished Leather	0.000	0.000	340.545
		Stores & Spares	10.259	4.556	2.916
		Capital Goods	52.617	20.861	11.955
	TOTAL IMPORTS		1038.488	385.690	659.807
	Earnings Per Share (Rs.)		1446.875	628	238

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.46	0.91	0.58
Return on Total Assets (PBT/Total Assets}	(%)	8.56	4.20	1.54
Return on Investment (ROI) (PBT/Networth)		0.30	0.16	0.06
Debt Equity Ratio (Total Liability/Networth)		2.41	2.56	2.55
Current Ratio (Current Asset/Current Liability)		1.69	1.66	3.16

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

CONTINGENT LIABILITIES

Rs. In millions

Particular	31.03.2012	31.03.2011
(a) Guarantee issued by Banks	0.505	0.000
(b) Bills discounted	54.882	57.477

(c) No provision is considered necessary for disputed Income Tax demands and interest thereon as given below:

Rs. In Millions

Nature of Dues	31.03.2012	31.03.2011	Period to which the amount relates	Disputes pending with
Income Tax demand	1.469	1.469	2004-05	Commissioner of Income Tax (Appeals)

The demands in respect of AY 2004-05 are mainly due to disallowance of claim of the company for deduction under Sec 80 HHC of the Income Tax Act, 1961. The Company has been advised by its tax counsel that it has a fairly good case to get the favourable orders from Appellate Authorities. The company also has obtained a stay from Madras High Court against the demand.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U19129TN1985PTC011821
Name of the company	RABIA LEATHER INDUSTRIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	KH Centre, 15/2 College Road, Nungambakkam, Chennai - 600 006 Tamilnadu, India khgroups@vsnl.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90288793
Type of charge	· Immovable property · Book debts · Movable property (not being pledge) · Others (Hypothecation)
Particular of charge holder	State Bank of India, Leather and International Branch, Mvj Towers, 177/1, P.H. Road, Kilpauk, Chennai - 600010, Tamilnadu, India dgm.07024@sbi.co.in
Nature of instrument creating charge	1. Supplemental Agreement of Loan for increase in the overall limit 2. Supplemental Agreement of Hypothecation of Goods and Assets for increase in the overall limit 3. Letter Regarding the grant of individual Limits within the overall limit 4. Hypothecation Letter in respect of Machines accepted as collateral security for advances. and 5. EM Letter
Date of instrument Creating the charge	11.07.2011
Amount secured by the charge	Rs.752.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Terms of Repayment As per Agreement Margin Raw Materials : 25% Stock-in-Process : 25% Finished Goods : 25% Extent and Operation of the charge Exclusive first charge on the current assets, movable assets and immovable properties of the company to the extent of Rs.752.500 Millions together with interest, costs, charges and other expenses which may be debited to the appropriate account(s) from time to time Others EPC : Rs.245.000 Millions. (*) FDB (Non LC) : Rs.100.000 Millions (*) Adhoc EPC : Rs.80.000 Millions (*) Term Loan O/S : Rs.57.500 Millions. LC : Rs.125.000 Millions. BG : Rs.10.000 Millions SBL : Rs.65.000 Millions. F.C : Rs.10.000 Millions FDBLC : Rs.60.000 Millions. Total : Rs.752.500 Millions. (*) 100% interchangeability (both ways) between EPC and EPC Adhoc, FDB (Non LC) limits.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Primary Security:- EPC / Adhoc EPC / SLC: Hypothecation of Stocks of Raw Materials, Stocks-in-Process, Finished Goods, Consumables, Stores, Spares etc. banked by export orders. FDB (Non-LC) & FDB (LC) / SLC: Documents of title to goods & extension of charge over current assets. LC / SLC : Documents of title to goods & extension of charge over current assets BG / SLC : : Extension of charge on entire current assets. Collateral Security:- (1) EM over the land measuring 84626 sq ft and buildings thereon at No.48 Sennerkuppam village. Sriperumbudur Taluk, Thiruvalluvar District Survey Nos Extent 78/2 (part) 31920 sq ft 78/2 (part) 31920 sq ft 78/2 (part) 16530 sq ft 78/3A2 4256 sq ft, belonging to M/s. Rabia Leather Industries Private Limited (2) Extension of EM over the land & building to the extent of 3 acres 42.89 cents at No.48, Sennerkuppam Village, Sriperumbudur Taluk, Thiruvalluvar District. Item No I : 0.81 cents @ S.No.76/2 Item No.II : acre 0.1.36.37 @ S.No.75/2, 78/2, 78/2A1A Item No.III : acre 1.25.52 @ S.No.76/1A, 76/1A1, 76/1B, 76/1C belonging to M/s.Rabia Leather Industries Private Limited Hypothecation of movable fixed assets belonging to the company (present and future), As above securities to secure the limit of Rs.752.500 Millions.
Date of instrument modifying the charge	15.05.2009
Particulars of the present modification	By the present modification, The various credit facilities enjoyed by the company now has been enhanced to Rs.752.500 Millions.

FIXED ASSETS

· Buildings

· Plant and equipment

· Furniture and fixtures

· Vehicles

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 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.87.50
Euro	1	Rs.71.32

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--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		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.