MIRA INFORM REPORT

Report Date :

16.12.2014

IDENTIFICATION DETAILS

Name :	B.B.K. LEATHERS PRIVATE LIMITED

Registered Office :	41, SIPCOT Industrial Estate, Ranipet – 632 403, Tamil Nadu

Country :	India

Financials (as on) :	31.03.2013

Date of Incorporation :	02.11.1993

Com. Reg. No.:	18-026136

Capital Investment / Paid-up Capital :	Rs.9.000 Millions

CIN No.: [Company Identification No.]	U18209TN1993PTC026136

IEC No.:	Not Available

TAN No.: [Tax Deduction & Collection Account No.]	Not Available

PAN No.: [Permanent Account No.]	Not Available

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer and Retailer of Leather Goods, Accessories and Garments etc.

No. of Employees :	300 (Approximately)

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 490000

Status :	Satisfactory

Payment Behaviour :	Usually Correct

Litigation :	Clear

Comments :	Subject is an established company having satisfactory track record. General financial position of the company is good. Trade relations are reported as fair. Business is active. Payments terms are reported to be usually correct. 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, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

India

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating: BBB
Rating Explanation	Moderate degree of safety it carry moderate credit risk.
Date	25.08.2014

Rating Agency Name	CRISIL
Rating	Short term rating: A3+
Rating Explanation	Moderate degree of safety it carry higher credit risk.
Date	25.08.2014

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 31-03-2014.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Baskaran
Designation :	Director
Contact No.:	91-9443244492
Date :	11.12.2014

LOCATIONS

Registered / Corporate Office :	41, SIPCOT Industrial Estate, Ranipet – 632 403, Tamil Nadu, India
Tel. No.:	91-4172-244491/ 92
Mobile No.:	91-9443244492 (Mr. Baskaran Porselvi)
Fax No.:	91-4172-244593
E-Mail :	bbkleather@yahoo.co baskaran@bbkshoes.com barath@bbkshoes.com

Factory 1 :	42B, SIPCOT Industrial Complex, Ranipet – 632 403, Tamil Nadu, India

Factory 2 :	152, SIDCO Industrial Estate, Ranipet – 632 403, Tamil Nadu, India

DIRECTORS

As on 30.09.2013

Name :

Mr. Narayansamy Baskaran

Designation :

Managing Director

Address :

No. 70, Vanapadi Road, Ranipet, Vellore – 632 402, Tamil Nadu, India

Date of Birth/Age :

12.09.1956

Date of Appointment :

02.11.1993

DIN No.:

02063363

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	U18209TN1993PTC026136	B.B.K. LEATHERS PRIVATE LIMITED	Managing director	02-11-93	02-11-93	-	Active	NO
2	U18209TN1993PTC025493	ROYALE LEATHER EXPORTS PRIVATE LIMITED	Managing director	09-01-95	09-01-95	-	Active	NO

Name :

Mr. Porselvi Baskaran

Designation :

Director

Address :

No. 70, Vanapadi Road, Ranipet – 632 402, Tamil Nadu, India

Date of Appointment :

02.11.1993

DIN No.:

02077949

Others 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	U18209TN1993PTC026136	B.B.K. LEATHERS PRIVATE LIMITED	Director	02-11-93	02-11-93	-	Active	NO
2	U18209TN1993PTC025493	ROYALE LEATHER EXPORTS PRIVATE LIMITED	Director	17-04-96	17-04-96	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares	% age
Narayanasamy Baskaran	175000	19.44
Baskaran Prselvi	675000	75.00
Baskaran – HUF	50000	5.56
Total	900000	100.00

Equity Share Break up (Percentage of Total Equity)

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

BUSINESS DETAILS

Line of Business :	Manufacturer and Retailer of Leather Goods, Accessories and Garments etc.

Products :	v Leather Goods v Accessories v Garments

Brand Names :	Not Available

Agencies Held :	Not Available

Exports :
Products :	Finished Goods
Countries :	v Europe

Imports :
Countries :	v Europe v Australia

Terms :
Selling :	Cash and L/C

Purchasing :	Cash and L/C

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Wholesalers, Retailers, Manufacturer

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

300 (Approximately)

Bankers :

Banker Name	State Bank of India
Branch Address	SME, Walajpet – 632 513, Tamil Nadu, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Term loan from Banks	0.000	4.928

SHORT TERM BORROWINGS
Rupee Term Loan from Banks	138.437	4.328
Foreign Currency from Term Loans From Banks	1.761	108.101
Total	140.198	117.357

Auditors :
Name :	Kalyansundaram and Company Chartered Accountants
Address :	No.13f/6, 1^st Lane, Mf Road, Navalpur, Gujarat, India
PAN No.:	AACPS3698C
Memberships :	--

Collaborators :	--

Associates/Subsidiaries :	--

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
900000	Equity Shares	Rs.10/- each	Rs.9.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	9.000	9.000	9.000
(b) Reserves & Surplus	148.832	124.571	103.955
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	12.600	15.300	10.000
Total Shareholders’ Funds (1) + (2)	170.432	148.871	122.955

(3) Non-Current Liabilities
(a) long-term borrowings	0.000	4.928	10.960
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	0.000	4.928	10.960

(4) Current Liabilities
(a) Short term borrowings	140.198	112.429	95.258
(b) Trade payables	105.072	116.524	123.748
(c) Other current liabilities	1.114	6.000	6.000
(d) Short-term provisions	19.016	19.342	12.739
Total Current Liabilities (4)	265.399	254.295	237.745

TOTAL	435.831	408.094	371.660

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	130.706	144.125	108.545
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	1.256	0.590	0.008
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.746	1.336	14.906
Total Non-Current Assets	132.708	146.051	123.459

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	152.802	106.992	129.096
(c) Trade receivables	82.935	80.292	74.416
(d) Cash and cash equivalents	7.021	17.062	1.659
(e) Short-term loans and advances	60.365	57.697	43.030
(f) Other current assets			0.000
Total Current Assets	303.123	262.043	248.201

TOTAL	435.831	408.094	371.660

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		TOTAL	NA	NA	NA

Less	EXPENSES
		TOTAL	NA	NA	NA

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		50.634	52.528	41.402

Less/ Add	DEPRECIATION/ AMORTISATION		19.792	21.820	15.625

	PROFIT BEFORE TAX		30.842	30.708	25.777

Less	TAX		0.000	10.092	4.206

	PROFIT AFTER TAX		30.842	20.616	21.571

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	1172.900	1003.627
	TOTAL EARNINGS		NA	1172.900	2176.527

	IMPORTS
		Leather Import	NA	99.697	65.962
		Consumable	NA	120.707	149.137
	TOTAL IMPORTS		NA	220.404	215.099

	Earnings Per Share (Rs.)		34.27	22.90	23.97

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PARTICULARS
Return on Total Assets (PBT/Total Assets}	(%)	7.10	7.54	6.94

Return on Investment (ROI) (PBT/Networth)		0.18	0.21	0.21

Debt Equity Ratio (Total Debt /Networth)		0.82	0.79	0.86

Current Ratio (Current Asset/Current Liability)		1.14	1.03	1.04

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	9.000	9.000	9.000
Reserves & Surplus	103.955	124.571	148.832
Net worth	112.955	133.571	157.832

long-term borrowings	10.960	4.928	0.000
Short term borrowings	95.258	112.429	140.197
Total borrowings	106.218	117.357	140.198
Debt/Equity ratio	0.940	0.879	0.888

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	No
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10341006	20/02/2012	91,600,000.00	STATE BANK OF INDIA	SME, WALAJAPET, TAMIL NADU - 632513, INDIA	B34506956
2	10338511	25/04/2011	72,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, WALAJAPET, TAMIL NADU - 632513, INDIA	B25917303
3	90294018	28/10/2011 *	252,988,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, WALAJAPET, TAMIL NADU - 632513, INDIA	B25918137
4	90294681	02/08/1999	27,500,000.00	STATE BANKOF INDIA	INDUSTRIAL FINANCEBRANCH, WALLAJAPET, VELLORE, TAMIL NADU - 632513, INDIA	-
5	90294552	18/02/1998	20,000,000.00	STATE BANKOF INDIA	INDUSTRIAL FINANCE BRANCH, WALAJAPET, VELLORE, TAMIL NADU - 632513, INDIA	-
6	80050806	06/12/1996	5,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, WALAJAPET, WALAJAPET, TAMIL NADU - 632513, INDIA	-
7	90294445	18/02/2005 *	5,000,000.00	STATE BANKOF INDIA	COMMERCIAL BRANCH, WALAJAPET, TAMIL NADU - 632513, INDIA	-
8	90292270	17/02/1995	1,100,000.00	STATE BANKOF INDIA	WALAJAPET BRANCH, WALAJAPET, TAMIL NADU, INDIA	-

* Date of charge modification

FIXED ASSETS:

Tangible assets

Land
Buildings
Plant and equipment
Furniture and fixtures
Vehicles
Office equipment

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.62.44
UK Pound	1	Rs.98.15
Euro	1	Rs.77.38

INFORMATION DETAILS

Information Gathered by :	DIP

Report Prepared by :	ANU

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
--PROFITABILITY	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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.

MIRA INFORM REPORT

INDEX OF CHARGES

Unit