MIRA INFORM REPORT

Report Date :

31.07.2014

IDENTIFICATION DETAILS

Name :	MODEL FOOTWEARS PRIVATE LIMITED
Registered Office :	1455, Block H, Basement, Chittaranjan Park, New Delhi – 110 019
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	08.01.1988
Com. Reg. No.:	55-030200
Capital Investment / Paid-up Capital :	Rs.8.400 millions
CIN No.: [Company Identification No.]	U74899DL1988PTC030200
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Leather Footwear.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 336000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Management of the company has failed to file its financials after 2011 with the Government Department. As per registrar of companies the date of balance sheet (i.e. financial filed) is shown as 31.03.2011 but documents related to the financials of 2011 is not available any source. Mr. Pabak Khastgir, Director has provided general information and also informed that company has achieved sales turnover of Rs.40.000 millions in 2012-13 and Rs.35.000 millions in 2013-14, which is not verified. However, trade relations are fair. Business is active. Payment terms are unknown. The company can be considered for business dealing with great caution.

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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

NEWS

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes that many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20%! Equities came in second with annualized return of 15.5%! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs.10000 mn.

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

Name :	Mr. Pabak Kumar Khastgir
Designation :	Director
Contact No.:	91-9810511204
Date :	28.07.2014

LOCATIONS

Registered Office :	1455, Block H, Basement, Chittaranjan Park, New Delhi – 110 019, India
Tel. No.:	91-11-26270758/ 26270963/ 26278458/ 26278957
Mobile No.:	91-9810511204 (Mr. Pabak Khastgir)
Fax No.:	91-11-26270758
E-Mail :	contact@modfoot.com contact@modelfootwears.com modfoot@airtelmail.in modfoot@del3.vsnl.net.in suchi@aaaca.in
Website :	http://modfoot.com
Location :	Owned
Corporate Office/ Factory :	A-34, Sector 64, Phase-III, Noida – 201 301, Uttar Pradesh, India
Tel. No.:	91-120-4336404/ 403/ 2598000-23
Fax No.:	91-120-2403239

DIRECTORS

AS ON 30.09.2010

Name :

Mrs. Sushmita Khastgir

Designation :

Managing Director

Address :

H-1455, Ground Floor, C.R. Park, New Delhi – 110 019, India

Date of Birth/Age :

11.04.1959

Date of Appointment :

20.07.1988

DIN No.:

01067563

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	U74899DL1988PTC030200	MODEL FOOTWEARS PRIVATE LIMITED	Managing director	20-07-1988	20-07-1988	-	Active	NO
2	U51909DL2004PTC128400	KAVINTA EXPORTS PRIVATE LIMITED	Director	30-09-2005	10-01-2005	-	Active	NO

Name :

Mr. Pabak Kumar Khastgir

Designation :

Director

Address :

H-1455, Ground Floor, C.R. Park, New Delhi – 110 019, India

Date of Birth/Age :

26.04.1955

Date of Appointment :

30.09.1997

DIN No.:

01067489

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	U74899DL1988PTC030200	MODEL FOOTWEARS PRIVATE LIMITED	Director	30-09-1997	30-09-1997	-	Active	NO
2	U51909DL2004PTC128400	KAVINTA EXPORTS PRIVATE LIMITED	Director	25-04-2009	25-04-2009	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares	% of Holding
Kavita Bose	47720	56.81
Sujay Ghosh	5104	6.08
Achinta Kumar Bose	160	0.18
Mamata Ghosh	7616	9.07
Sushmita Khastgir	15000	17.86
Suvrangshu Bose	4200	5.00
Pabak Kumar Khastgir	4200	5.00
Total	84000	100.00

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 Leather Footwear.
Products :	· Leather Shoes · Shoe Uppers
Exports :
Products :	· Leather Footwear
Countries :	· UK · USA · France · Italy
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS [AS ON 31.03.2010]:

a) Licensed Capacity: N.A.

b) Installed Capacity for production certified by the management and being in technical nature not verified by auditor.

Particulars	Unit	2009-10
Leather Goods	Pairs (per month)	40000

Particulars	Unit	Actual Production
Leather Shoes and Shoe Upper	Pairs	81727

GENERAL INFORMATION

Suppliers :

· India Traders, Karol Bagh, New Delhi

Customers :

Wholesalers and Retailers

· Harbor Footwear, USA

No. of Employees :

100 (Approximately)

Bankers :

Canara Bank, No.1, D.D.A. Building, Nehru Place, New Delhi – 110 019, India

Facilities :

Packing Credit – Rs.10.000 millions (From Canara Bank)

Secured Loans	31.03.2010 (Rs. in Millions)	31.03.2009 (Rs. in Millions)
From Scheduled Banks
Packing Credit	27.250	14.885
Foreign Bills Purchases	2.781	15.056
Total	30.031	29.941

Banking Relations :	--
Auditors 1 :
Name :	Rajesh Gupta and Associates Chartered Accountants
Auditors 2 :
Name :	O.P. Singh Chartered Accountant
Address :	H No.624, Sector - 19, Faridabad – 121 002, Haryana, India
Mobile No.:	91-9811075245/ 98180176486
E-Mail :	caops2006@yahoo.com
PAN No.:	ABKPS4266M
Related Party (As on 31.03.2010) :	Grab International Limited, UK (A Company incorporated in UK in which Mrs. Sushmita Khastgir, Pabak Khastgir and Mr. S. Bose are also directors)

CAPITAL STRUCTURE

AS ON 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
84000	Equity Shares	Rs.100/- each	Rs.8.400 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		8.400	8.400	8.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		75.497	73.791	70.663
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		83.897	82.191	79.063
LOAN FUNDS
1] Secured Loans		30.031	29.941	53.825
2] Unsecured Loans		3.758	10.283	0.000
TOTAL BORROWING		33.789	40.224	53.825
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		117.686	122.415	132.888
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		46.935	52.989	55.273
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.078	0.078	0.078
DEFERRED TAX ASSETS		0.229	0.279	0.006
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	40.731	36.977	40.881
	Sundry Debtors	25.318	27.383	40.523
	Cash & Bank Balances	5.961	19.574	4.199
	Other Current Assets	8.798	7.360	12.059
	Loans & Advances	4.994	4.994	4.590
Total Current Assets		85.802	96.288	102.252
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	10.510	19.338	11.911
	Other Current Liabilities	0.658	1.444	0.088
	Provisions	4.190	6.437	12.722
Total Current Liabilities		15.358	27.219	24.721
Net Current Assets		70.444	69.069	77.531
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		117.686	122.415	132.888

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales	68.652	156.981	155.924
		Export Incentives	11.911	16.808	16.629
		Other Income		0.679	0.028
		Increase/ (Decrease) in Inventories	(5.844)	9.678	(7.125)
		TOTAL (A)	74.719	184.146	165.456
Less	EXPENSES
		Manufacturing Expenses	34.530	131.260	111.332
		Personnel Expenses	8.605	12.655	13.049
		Selling, Administrative and Other Expenses	19.457	26.603	22.141
		TOTAL (B)	62.592	170.518	146.522
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		12.127	13.628	18.934
Less	INTEREST AND FINANCIAL EXPENSES (D)		4.154	4.882	4.424
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		7.973	8.746	14.510
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.656	6.340	6.613
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		2.317	2.406	7.897
Less	TAX (H)		0.411	(0.722)	5.111
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		1.906	3.128	2.786
	EARNINGS IN FOREIGN CURRENCY
		Exports of Goods in FOB	67.008	155.964	152.952
	TOTAL EARNINGS		67.008	155.964	152.952
	IMPORTS
		Leather	0.000	0.130	0.433
		Plant and Machinery	0.000	3.773	0.363
		Sole/ Heels	2.257	0.000	0.110
	TOTAL IMPORTS		2.257	3.903	0.906
	Earnings / (Loss) Per Share (Rs.)		22.69	24.13	58.09

Particulars	31.03.2014	31.03.2013
Sales Turnover (Approximately)	35.000	40.000

The above information has been parted by Mr. Pabak Khastgir (Director).

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.55	1.70	1.68
Net Profit Margin (PBT/Sales)	(%)	3.37	1.53	5.06
Return on Total Assets (PBT/Total Assets}	(%)	1.75	1.61	5.01
Return on Investment (ROI) (PBT/Networth)		0.03	0.03	0.10
Debt Equity Ratio (Total Debt/Networth)		0.40	0.49	0.68
Current Ratio (Current Asset/Current Liability)		5.59	3.54	4.14

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2008	31.03.2009	31.03.2010
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	8.400	8.400	8.400
Reserves & Surplus	70.663	73.791	75.497
Share Application money pending allotment	0.000	0.000	0.000
Net worth	79.063	82.191	83.897
Secured Loans	53.825	29.941	30.031
Unsecured Loans	0.000	10.283	3.758
Total borrowings	53.825	40.224	33.789
Debt/Equity ratio	0.681	0.489	0.403

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2008	31.03.2009	31.03.2010
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Sales	155.924	156.981	68.652
		0.678	(56.267)

NET PROFIT MARGIN

Net Profit Margin	31.03.2008	31.03.2009	31.03.2010
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Sales	155.924	156.981	68.652
Profit	2.786	3.128	1.906
	1.79%	1.99%	2.78%

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 five 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	Yes
18]	Major customers	Yes
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	No
30]	Major Shareholders, if available	Yes
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
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	10049394	04/05/2007	78,600,000.00	CANARA BANK	D.D.A. BUILDING, NEAR PARAS CINEMA, NEHRU PLACE, NEW DELHI, DELHI - 110019, INDIA	A14769764
2	80029215	04/05/2007 *	78,600,000.00	CANARA BANK	D.D.A. BUILDING, NEAR PARAS CINEMA, NEHRU PLACE, NEW DELHI, DELHI - 110019, INDIA	-
3	80016557	22/03/2014 *	41,500,000.00	CANARA BANK	CANARA BANK, NEHRU PLACE BRANCH, NEW DELHI, DELHI  - 110019, INDIA	C03259231
4	80016555	18/07/2008 *	53,600,000.00	CANARA BANK	D.D.A. BUILDING, NEAR PARAS CINEMA, NEHRU PLACE,  NEW DELHI, DELHI - 110019, INDIA	A43636877

 * Date of charge modification

Unsecured Loans	31.03.2010 (Rs. in Millions)	31.03.2009 (Rs. in Millions)
From Directors
Kavita Bose	3.000	3.000
Sushmita Khastgir	0.758	7.283
Total	3.758	10.283

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

Particulars	31.03.2010 (Rs. in Millions)	31.03.2009 (Rs. in Millions)
Foreign Bills Discounted	2.781	6.753

FIXED ASSETS:

· Land

· Building

· Air Conditioner

· Computer

· Electric Installation

· Typewriter

· Fax

· Furniture and Fixtures

· Generator

· Lasts

· Vehicles

· Refrigerator

· Cellular Phone

· Photocopy Machines

· Plant and Machinery

· Water Cooler

· Camera

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.60.15
UK Pound	1	Rs.101.92
Euro	1	Rs.80.64

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	SUM
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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.