MIRA INFORM REPORT

Report Date :

10.03.2014

IDENTIFICATION DETAILS

Name :	FARIDA LEATHERWARE PRIVATE LIMITED (w.e.f. 21.05.2001)
Formerly Known As :	FARIDA LEATHERWARE LIMITED (w.e.f. 01.01.2001) FARIDA LEATHERWARE PRIVATE LIMITED
Registered Office :	151/4, Mount Poonamallee High Road, Ramapuram, Chennai – 600089, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	31.01.1992
Com. Reg. No.:	18-022111
Capital Investment / Paid-up Capital :	Rs. 1.220 Millions
CIN No.: [Company Identification No.]	U18209TN1992PTC022111
TAN No.: [Tax Deduction & Collection Account No.]	CHEF00232B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of a High Quality Men and Women Footwear and Finished Leather.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 76000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There seems some dip in the turnover and profits of the company during 2013. However, net worth of the company is satisfactory. Trade relations are reported as fair. Business is active. Payments are reported to be slow but 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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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

The worst is over for India’s economy with gross domestic product likely to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s Analytics. Concerns over the rupee and current account deficit are under control, said the agency. Ratings firm Crisil has forecast 6 % growth for 2014/15 up from the estimated 4.8 % for 2013/14.  Total economic growth, infrastructure bottlenecks and lack of transparency and consistency in foreign direct investment policies seem to have taken a toll on India’s attractiveness as an investment destination, says an Ernst & Young survey.  Projects with FDI component fell 16.4 % across the globe in 2012 from the previous year.  The drop in India was steeper at 21 %. State run carrier Air India is doling out free tickets to its 24000 employees, even as it expects to incur a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn. 550000 number of jobs generated across India in 2013, a fall of 0.4 % as compared to with a year earlier. The National  Capital Region has a one-fourth share in total jobs created, according to a study by industry lobby group Assochem, Banks, real estate, automobile and telecommunications sectors are showing a rise of job creation. $ 805 mn investments by venture capital firms in India during 2013, registering a drop of about 18 % over the previous year. The Information Technology and IT-Enabled  Services Industry retained its status as the favourable venture capital investors in 2013. Pakistan has temporarily banned gold imports for the second time in six months, as it tries to stem smuggling into India. India’s import duty on gold is 10 % and curbs on purchases have dried up legal imports into what used to be the world’s biggest bullion buyers. The World Gold Council puts the amount smuggled into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed bank deposits estimated to be about Rs 35000 mn be used for education and awareness among depositors.  According to the plan, deposits that have not been claimed for at least 10 years will be transferred to the scheme.

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.

INFORMATION DECLINED

MANAGEMENT NON-COOPERATIVE (Tel. No. : 91-417-4248253)

LOCATIONS

Registered Office :	151/4, Mount Poonamallee High Road, Ramapuram, Chennai – 600089, Tamilnadu, India
Tel. No.:	91-44-22521515
Fax No.:	91-44-26411363
E-Mail :	holding@farida.co.in lcimports@farida.in treasury@faridatannery.com
Website :	http://www.farida.co.in
Factory:	34/2 Pernambut Road, Vellore District, Chinnavarikkam - 635811, Tamilnadu, India
Tel. No.:	91-4174-248253/ 324366
Fax No.:	91-4174-249242
E-Mail :	flwadmin@farida.in flwgm@farida.in

DIRECTORS

As on 04.09.2013

Name :

Mr. Iqbal Ahmed Mecca

Designation :

Director

Address :

10, Kothari Road, Nungambakkam, Chennai – 600034, Tamilnadu, India

Date of Birth/Age :

10.10.1969

Date of Appointment :

31.01.1992

DIN No.:

00013788

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	Company/ LLP Status	Defaulting status
1	U18209TN1987PTC014919	DELTA SHOES PRIVATE LIMITED	Director	29/09/1987	29/09/1987	Active	NO
2	U19201TN1992PTC022110	RIVIERA SHOES PRIVATE LIMITED	Director	31/01/1992	31/01/1992	Strike off	NO
3	U18209TN1992PTC022111	FARIDA LEATHERWARE PRIVATE LIMITED	Director	31/01/1992	31/01/1992	Active	NO
4	U73100TN1993GAP026146	AMBUR FDDI SHOE TECHNOLOGY CENTRE	Director	03/11/1993	03/11/1993	Active	NO
5	U65993TN1985PTC011781	FARIDA HOLDINGS PRIVATE LIMITED	Director	01/01/2000	01/01/2000	Active	NO
6	U18209TN1981PTC008805	FARIDA CLASSIC SHOES PRIVATE LIMITED	Director	01/01/2000	01/01/2000	Active	NO
7	U19201TN2005PTC055925	FARIDA PRIME TANNERY PRIVATE LIMITED	Director	11/04/2005	11/04/2005	Active	NO
8	U19112TN2006PTC058989	JAFRA INSOLES INDIA PRIVATE LIMITED	Director	24/02/2006	24/02/2006	Active	NO
9	AAB-9798	JUPITER PROPERTIES AND BUILDERS (INDIA) LLP	Designated Partner	03/01/2014	03/01/2014	Active	NO

Name :

Mr. Rasheed Ahmed Mecca

Designation :

Director

Address :

No. 936, Periyare. V. R. High Road, Flowers Road, Chennai - 600084, Tamilnadu, India

Date of Birth/Age :

01.01.1949

Date of Appointment :

31.01.1992

DIN No.:

00013760

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	Company/ LLP Status	Defaulting status
1	U65993TN1985PTC011781	FARIDA HOLDINGS PRIVATE LIMITED	Director	19/04/1985	19/04/1985	Active	NO
2	U18209TN1987PTC014919	DELTA SHOES PRIVATE LIMITED	Director	29/09/1987	29/09/1987	Active	NO
3	U18209TN1992PTC022111	FARIDA LEATHERWARE PRIVATE LIMITED	Director	31/01/1992	31/01/1992	Active	NO
4	U33209TN1999PTC043409	FARIDA NEWLINE STUDIO PRIVATE LIMITED	Director	26/10/1999	26/10/1999	Amalgamated	NO
5	U19201TN2001PTC046498	CHENNAI FOOTWEAR PRIVATE LIMITED	Director	25/01/2001	25/01/2001	Amalgamated	NO
6	U19201TN2005PTC055925	FARIDA PRIME TANNERY PRIVATE LIMITED	Director	11/04/2005	11/04/2005	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 04.09.2013

Names of Shareholders	No. of Shares
Iqbal Ahmed Mecca	1
Farida Holdings Private Limited, India	12199
Total	12200

As on 04.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of a High Quality Men and Women Footwear and Finished Leather.

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

State Bank of India, Leather International Branch, MVJ Towers 177/1, Kilpauk, Chennai – 600010, Tamilnadu, India

Facilities :

SECURED LOAN	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Vehicle Loan Taken from Bank
Kotak Mahindra P Limited	0.637	0.000
SHORT TERM BORROWINGS
Secured Loan from bank
SBI LIB Packing Credit	0.000	24.347
LC Bill Discounting
SBI LIB Chennai	0.000	7.438
Total	0.637	31.7851

Banking Relations :	--
Auditors :
Name :	Akbar Rifa and Company Chartered Accountants
Address :	C8, Orchid Manor Appartments, Diwan Rama Road, Purasawakkam, Chennai – 600084, Tamilnadu, India
Tel. No.:	91-44-33461533/ 1633
Email:	akber@akberrifa.com akberrifa@gmail.com
Income-tax PAN of auditor or auditor’s firm :	AAUFA5645D

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
25,000	Equity Shares	Rs. 100/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12,200	Equity Share	Rs. 100/- each	Rs. 1.220 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	1.220	1.220	1.220
(b) Reserves & Surplus	17.927	16.387	14.489
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	19.147	17.607	15.709
(3) Non-Current Liabilities
(a) long-term borrowings	0.637	0.000	29.912
(b) Deferred tax liabilities (Net)	1.447	1.405	1.450
(c) Other long term liabilities	29.912	29.912	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	31.996	31.317	31.362
(4) Current Liabilities
(a) Short term borrowings	0.000	31.785	27.664
(b) Trade payables	23.433	13.445	10.984
(c) Other current liabilities	1.610	0.956	1.814
(d) Short-term provisions	1.652	3.788	4.657
Total Current Liabilities (4)	26.695	49.974	45.119
TOTAL	77.838	98.898	92.190
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	16.202	14.461	14.984
(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	0.147	0.145	0.145
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	7.110	7.065	8.086
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	23.459	21.671	23.215
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	26.586	11.142	31.434
(c) Trade receivables	15.223	60.971	30.938
(d) Cash and cash equivalents	6.874	0.620	0.521
(e) Short-term loans and advances	4.700	3.217	4.799
(f) Other current assets	0.996	1.277	1.283
Total Current Assets	54.379	77.227	68.975
TOTAL	77.838	98.898	92.190

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	36.966	93.985	91.722
		Other Income	36.586	24.273	33.672
		TOTAL (A)	73.552	118.258	125.394
Less	EXPENSES
		Cost Material consumed	31.482	75.442	83.183
		Changes in inventories of finished goods, work-in-progress	(7.239)	(0.451)	3.794
		Employee Benefit Expense	16.776	12.103	10.599
		Direct	13.174	10.312	6.985
		Other Expenses	13.018	12.652	14.095
		TOTAL (B)	67.211	110.058	118.656
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		6.341	8.200	6.738
Less	FINANCIAL EXPENSES (D)		1.855	3.373	2.362
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.486	4.827	4.376
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.260	2.068	2.174
	PROFIT BEFORE TAX (E-F) (G)		2.226	2.759	2.202
Less	TAX (H)		0.686	0.861	0.685
	PROFIT AFTER TAX (G-H) (I)		1.540	1.898	1.517
	Earnings Per Share (Rs.)		126.23	155.57	124.34

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	2.09	1.60	1.21
Net Profit Margin (PBT/Sales)	(%)	6.02	2.94	2.40
Return on Total Assets (PBT/Total Assets}	(%)	2.87	2.79	2.39
Return on Investment (ROI) (PBT/Networth)		0.12	0.16	0.14
Debt Equity Ratio (Total Debt/Networth)		0.03	1.81	3.67
Current Ratio (Current Asset/Current Liability)		2.04	1.55	1.53

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	1.220	1.220	1.220
Reserves & Surplus	14.489	16.387	17.927
Net worth	15.709	17.607	19.147
Long-term borrowings	29.912	0.000	0.637
Short term borrowings	27.664	31.785	0.000
Total borrowings	57.576	31.785	0.637
Debt/Equity ratio	3.665	1.805	0.033

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	91.722	93.985	36.966
		2.467	(60.668)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	91.722	93.985	36.966
Profit	1.517	1.898	1.540
	1.65%	2.02%	4.17%

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	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	No
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	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10056400	24/07/2006	626,500,000.00	STATE BANK OF INDIA	LEATHER INTERNATIONAL BRANCH, MVJ TOWERS 177/1, KILPAUK, CHENNAI - 600010, TAMILNADU, INDIA	A03245008
2	90284057	05/05/2005 *	30,000,000.00	STATE BANK OF INDIA	LEATHER INTERNATIONAL BRANCH, MVJ TOWERS 177/1, KILPAUK, CHENNAI - 600010, TAMILNADU, INDIA	-
3	90283468	06/11/1992	9,500,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, 39 ; RAJAJI SALAI, MADRAS - 600001, TAMILNADU, INDIA	-

* Date of charge modification

FIXED ASSETS

· Land

· Factory Building

· Plant and Machinery

· Vehicle

· Furniture and Fittings

· Computer

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.60.99
UK Pound	1	Rs.102.07
Euro	1	Rs.84.53

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.