MIRA INFORM REPORT

Report Date :

06.12.2011

IDENTIFICATION DETAILS

Name :	LIBERTY SHOES LIMITED
Registered Office :	Liberty Puram, 13^th Mile Stone, G. T. Karnal Road, Kutail, P. O. Bastara, Karnal-132114, Haryana
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.09.1986
Com. Reg. No.:	05-033185
Capital Investment / Paid-up Capital :	Rs.170.400 Millions
CIN No.: [Company Identification No.]	L19201HR1986PLC033185
TAN No.: [Tax Deduction & Collection Account No.]	RTKL00664G
PAN No.: [Permanent Account No.]	AAACL3146K
Legal Form :	A public limited liability company. The company’s shared are listed on the Stock Exchanges.
Line of Business :	Manufacturing and selling of leather and non-leather shoes, leather shoe uppers and leather garments.
No. of Employees :	1565 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 5700000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track. Financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered for normal 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, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office / Factory :	Liberty Puram, 13^th Mile Stone, G. T. Karnal Road, Kutail, P. O. Bastara, Karnal-132001, Haryana, India
Tel. No.:	91-1748-51101/ 03 / 52924 / 925 / 52850 / 57653
Fax No.:	91-1748-52849 / 51100/52297 / 98 / 52511 91-11-5934940 / 41
E-Mail :	anupamb@giasdl01.vsnl.net.in lpm@libertyhouses.com ghd@libertyshoes.com
Website :	http://www.libertyshoes.com
Corporate Office :	2^nd Floor. Tower-B, Building No.8, DLF Cyber City, Phase-II, Gurgaon-122002, Haryana, India
Tel. No.:	91-124-4616200
Fax No.:	91-124-4616222
E-Mail :	mail@libertshoes.com
Head Office :	Liberty House, Liberty Road, P.O. Box No. 103, Karnal-132001 (Haryana) India
Tel. No.:	91 - 184-2252533, 2256100
Fax No.:	91 - 184-2255636, 2256400
E-Mail :	knl@libertyshoes.com
Factory :	Liberty Complex, G. T. Karnal Road, 17^th Milestone, Gharaunda, District Karnal - 132 001, Haryana
Tel. No.:	91 - 1748 - 52297 / 52299/51111/14
Fax No.:	91 - 1748 – 52296 / 51000
Marketing Office :	4 / 42, Punjabi Bagh, New Delhi – 110 026
Tel. No.:	91 - 11 - 5194371 / 5934943 / 5934944 / 5934945
Fax No.:	91 - 11 - 5455567 / 5934940 / 5934941 / 593494
E-Mail :	mail@libertyshoes.com
Branches :	Located at :- Rajpura, Punjab Saharanpur, Uttar Pradesh Agra, Uttar Pradesh Bangalore, Karnataka Chennai, Tamilnadu Delhi Jaipur, Rajasthan Jammu, Jammu and Kashmir Gwalior, Madhya Pradesh

DIRECTORS

As on 31.03.2011

Name :	Mr. Adesh Gupta
Designation :	Executive Director, Chief Executive Officer
DIN No. :	0014192

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L19201HR1986PLC033185	Liberty Shoes Limited	Whole-time director	01-04-10	16-07-01	-	Active	NO
2	U65992DL2003PTC118855	Geofin Investments Private Limited	Director	07-02-03	07-02-03	-	Active	NO
3	U24119HR2004PLC035375	Liberty Organosys Limited	Director	30-04-04	30-04-04	-	Active	NO
4	U34300DL2005PTC136515	Liberty Automotive Private Limited	Director	20-05-05	20-05-05	-	Active	NO
5	U45400DL2005PTC142574	Sunfest Infratech and Power Private Limited	Director	28-09-07	01-09-07	-	Active	NO
6	U64203HR2010PTC041256	Sunfest Runcom Technologies Private Limited	Director	22-09-10	22-09-10	-	Active	NO

Name :	Mr. Adarsh Gupta
Designation :	Executive Director
DIN No. :	00161193

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L19201HR1986PLC033185	Liberty Shoes Limited	Whole-time director	01-04-10	01-06-00	-	Active	NO
2	U25209DL2002PTC113830	Inspiration Idea Innovations and Productions Private Limited	Director	15-01-02	15-01-02	-	Active	NO
3	U26914RJ2003PLC018046	Liberty Whitewares Limited	Managing director	01-02-07	20-01-03	-	Active	NO
4	U51909DL2004PLC124259	Liberty Retail Revolutions Limited	Director	22-01-04	22-01-04	-	Active	NO
5	U24119HR2004PLC035375	Liberty Organosys Limited	Director	30-04-04	30-04-04	-	Active	NO
6	U26914DL2002NPL115694	Indian Council of Sanitaryware Manufactures	Director	20-12-04	20-12-04	-	Active	NO
7	U34300DL2005PTC136515	Liberty Automotive Private Limited	Director	20-05-05	20-05-05	-	Active	NO

Name :	Mr. Sharnmi Bansal
Designation :	Executive Director
DIN No. :	00138792

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L19201HR1986PLC033185	Liberty Shoes Limited	Whole-time director	01-04-10	01-06-00	-	Active	NO
2	U45201HR2005PTC035619	Little World Constructions Private Limited	Director	08-02-05	08-02-05	-	Active	NO

Name :	Mr. Satish Kumar Goel
Designation :	Director (Law and Taxation)
DIN No. :	00143415

Name :	Mr. Sunil Bansal
Designation :	Non-Executive Director
DIN No. :	00142121

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L19201HR1986PLC033185	Liberty Shoes Limited	Whole-time director	01-01-09	28-09-90	-	Active	NO
2	U51909DL2004PLC124259	Liberty Retail Revolutions Limited	Director	01-01-09	22-01-04	-	Active	NO
3	U45201HR2005PTC035619	Little World Constructions Private Limited	Director	30-09-09	25-07-09	-	Active	NO

Name :	Mr. Adeesh Kumar Gupta
Designation :	Additional Director
DIN No. :	00137612

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U65992DL2003PTC118855	Geofin Investments Private Limited	Director	07-02-03	07-02-03	-	Active	NO
2	U51909DL2004PLC124259	Liberty Retail Revolutions Limited	Director	24-09-10	12-08-10	-	Active	NO
3	L19201HR1986PLC033185	Liberty Shoes Limited	Whole-time director	01-10-11	12-08-11	-	Active	NO

Name :	Mr. Surendra Kumar Arya
Designation :	Independent Director
DIN No. :	00004626

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U27109DL1982PLC084678	JBM Industries Limited	Director	18-08-82	18-08-82	-	Active	NO
2	L29130DL1987PLC027342	Jay Bharat Maruti Limited	Managing director	10-06-08	19-03-87	-	Active	NO
3	U74899DL1990PLC101070	Gurera Industries Limited	Director	16-11-90	16-11-90	-	Active	NO
4	L74899DL1994PLC063412	A To Z Securities Limited	Director	12-12-94	12-12-94	-	Active	NO
5	U74899DL1995PLC064073	Jay Bharat Exhaust Systems Limited	Director	05-01-95	05-01-95	-	Amalgamated	NO
6	U74899DL1991PTC044376	JBM Builders Private Limited	Director	01-04-95	01-04-95	-	Active	NO
7	U74899DL1995PLC067432	JBM International Limited	Director	18-04-95	18-04-95	-	Active	NO
8	U74899DL1998PTC095612	ANS Holding Private Limited	Director	18-08-98	18-08-98	-	Active	NO
9	U27109HR1975PLC007910	Jaico Steel Fastners Limited	Director	01-08-00	01-08-00	-	Amalgamated	NO
10	L74899DL1996PLC083073	JBM Auto Limited	Director	01-08-00	01-08-00	-	Active	NO
11	U34300TN1998PTC046810	JBM Auto System Private Limited	Director	16-03-01	16-03-01	-	Active	NO
12	U74899DL1997PLC086432	Neel Metal Products Limited	Director	01-05-02	01-05-02	-	Active	NO
13	L74899DL1992PLC050333	Minda Industries Limited	Director	29-01-03	29-01-03	-	Active	NO
14	U99999DL1959PLC176013	Automotive Component Manufacturers Association of India	Director	02-09-03	02-09-03	-	Active	NO
15	U34300DL2003PTC123285	Thai Summit Neel Auto Private Limited	Nominee director	02-12-03	02-12-03	-	Active	NO
16	U45201DL2003PTC120054	Satish Buildwell Private Limited	Director	03-03-05	03-03-05	-	Active	NO
17	U74899DL2005PTC142456	Unitech Sai Private Limited	Director	10-11-05	10-11-05	-	Active	NO
18	U70109DL2006PTC150012	Shreeaumji Infrastructure and Projects Private Limited	Director	22-06-06	22-06-06	-	Active	NO
19	L19201HR1986PLC033185	Liberty Shoes Limited	Director	20-09-06	20-09-06	-	Active	NO
20	U28111DL2006PTC155129	Arcelor Neel Tailored Blank Private Limited	Nominee director	01-11-06	01-11-06	-	Active	NO
21	U74899DL2006PTC144713	Shreeaumji Developers Sez Private Limited	Director	28-09-07	14-11-06	-	Active	NO
22	U45201DL2006PTC144714	Shreeaumji Real Estate Sez Private Limited	Director	28-09-07	14-11-06	-	Active	NO
23	U74140DL2007PTC158597	Neel Metal Fanalca Environment Management Private Limited	Nominee director	02-02-07	02-02-07	-	Active	NO
24	U13203DL2007PLC164433	ANS Steel Tubes Limited	Director	06-06-07	06-06-07	-	Active	NO
25	U92100MH2007PLC172122	Vichaar Television Network Limited	Director	29-11-07	29-11-07	-	Active	NO
26	U29220DL2007PTC171360	JBM Ma Automotive Private Limited	Director	12-12-07	12-12-07	-	Active	NO
27	U74140DL2008PTC172320	JBM Environment Management Private Limited	Director	07-01-08	07-01-08	-	Active	NO
28	U45200DL2007PTC160649	Multivision Constructions Private Limited	Director	15-09-08	30-06-08	-	Active	NO
29	U27100DL2009PLC187584	JBM Ogihara Automotive India Limited	Director	13-02-09	13-02-09	-	Active	NO
30	U28900DL2010PLC211731	M J Casting Limited	Director	23-12-10	23-12-10	-	Active	NO
31	U28113DL2011PTC212192	FJM Cylinders Private Limited	Director	05-01-11	05-01-11	-	Active	NO

Name :	Mr. Raghubar Dayal
Designation :	Independent Director
DIN No. :	00481803

Name :	Mr. Amitabh Taneja
Designation :	Independent Director
DIN No. :	00031257

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U22122DL2003PTC120097	Images Multimedia Private Limited	Managing director	07-08-08	29-04-03	-	Active	NO
2	U51909DL2004PLC124259	Liberty Retail Revolutions Limited	Director	13-12-04	13-12-04	-	Active	NO
3	L18101MH1997PLC111924	Provogue (India) Limited	Director	13-12-04	13-12-04	-	Active	NO
4	U52599DL2006PTC150677	River Water Retail Management and Design Private Limited	Director	04-08-09	08-07-06	-	Active	NO
5	U92142DL2006PTC152281	IM Entertainment Private Limited	Director	21-08-06	21-08-06	-	Active	NO
6	L19201HR1986PLC033185	Liberty Shoes Limited	Director	20-09-06	20-09-06	-	Active	NO
7	U93030DL2007PTC165991	Images Retail Intelligence Services Private Limited	Director	18-07-07	18-07-07	-	Active	NO
8	U80301DL2008PTC177476	Images Knowledge House Private Limited	Director	30-04-08	30-04-08	-	Active	NO
9	U22300DL2008PTC177729	Images Consumer Media Private Limited	Director	06-05-08	06-05-08	-	Active	NO
10	U93000DL2008NPL178695	Shopping Centres Association of India	Director	28-05-08	28-05-08	-	Active	NO
11	U72400DL2009PTC186578	Images Access Multimedia Private Limited	Director	12-01-09	12-01-09	-	Active	NO
12	U52190MH2004PTC149468	Prozone Enterprises Private Limited	Director	16-09-09	10-03-09	-	Active	NO
13	U74999DL2011PTC219145	I and R Fashion Factory Private Limited	Additional director	04-06-11	04-06-11	-	Active	NO

Name :	Mr. Prem Chand Garg
Designation :	Independent Director
DIN No. :	00335568

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U74899DL1994PLC061999	Shrilal Mahal Overseas Limited	Director	07-10-94	07-10-94	-	Active	NO
2	U74999DL1997PLC087205	Shri Lal Mahal Limited	Director	12-05-97	12-05-97	-	Active	NO
3	U74899DL1999PLC098882	Kannu Aditya (India) Limited	Director	25-09-09	01-08-06	-	Active	NO
4	L19201HR1986PLC033185	Liberty Shoes Limited	Director	20-09-06	20-09-06	-	Active	NO
5	U52100DL2008PLC172940	Lal Mahal Retail Limited	Director	21-01-08	21-01-08	-	Active	NO
6	U65929DL2010PTC203383	Shivnath Holdings Private Limited	Director	31-05-10	31-05-10	-	Active	NO
7	U24200DL2010PTC204207	Vittal Steelchem Private Limited	Director	17-06-10	17-06-10	-	Active	NO
8	U51909DL1999PTC098874	Polaris Overseas Private Limited	Additional director	12-02-11	12-02-11	-	Active	NO

Name :	Mr. Vivek Bansal
Designation :	Independent Director
DIN No. :	00939232

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U72200DL2005PTC140189	Frontend Software Private Limited	Director	30-08-05	30-08-05	-	Strike off	NO
2	L19201HR1986PLC033185	Liberty Shoes Limited	Director	20-09-06	20-09-06	-	Active	NO
3	U74140DL2007PTC159049	Plus Capital Advisors Private Limited	Director	09-02-07	09-02-07	-	Active	NO
4	U74999DL2007PTC160251	Plus Realty Ventures Private Limited	Director	07-03-07	07-03-07	-	Strike off	NO

Name :	Mr. Siddharth Sanghi
Designation :	Independent Director
DIN No. :	00033401

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U29269AP1982PTC003704	Balaji Zippers Private Limited	Director	30-03-01	30-03-01	-	Active	NO
2	U28991AP1983PTC003995	Fancy Zippers Private Limited	Director	30-03-01	30-03-01	-	Active	NO
3	U28991AP1983PTC004353	Maruthi Fasteners Private Limited	Director	30-03-01	30-03-01	-	Active	NO
4	U18100AP1982PTC003667	Sanghi Synthetic Private Limited	Director	30-03-01	30-03-01	-	Active	NO
5	U28999AP1983PTC004066	Alpha Zippers Private Limited	Director	31-03-01	31-03-01	-	Active	NO
6	U29268AP1982PTC003695	Sanghi Poly Zips Private Limited	Director	31-03-01	31-03-01	-	Active	NO
7	U18101AP1982PTC003644	S K K Zippers Private Limited	Director	31-03-01	31-03-01	-	Active	NO
8	U32204AP1992PTC014092	Sparsh Communications Private Limited	Director	30-03-02	30-03-02	-	Active	YES
9	U24304AP1983PTC003994	Sanghi Filaments Private Limited	Director	05-04-04	05-04-04	-	Active	NO
10	U74999AP2006PTC050742	Sanghi Sez Private Limited	Director	27-07-06	27-07-06	-	Active	NO
11	U03213AP1981PTC003213	SZF Private Limited	Managing director	26-02-08	25-07-07	-	Active	NO
12	U18100AP1985PTC005441	Sanghi Threads Private Limited	Managing director	26-02-08	25-07-07	-	Active	NO
13	U18100AP1992PLC013686	Sanghi Spinners India Limited	Director	30-09-08	31-12-07	-	Active	NO
14	U20299AP1991PLC013166	Sanghi Plantations Limited	Director	30-09-08	26-02-08	-	Active	YES
15	L17110AP1986PLC009021	Sanghi Polyesters Limited	Whole-time director	29-03-08	29-03-08	-	Active	NO
16	U26942AP1991PLC013280	Sanghi Cements Limited	Director	30-09-08	23-04-08	-	Active	NO

KEY EXECUTIVES

Audit Committee :	Mr. Sunil Bansal Mr. Prem Chand Garg Mr. Raghu Dayal Mr. Vivek Bansal
Remuneration / Selection Committee :	Mr. Raghu Dayal Mr. Prem Chand Garg Mr. Surendra Kumar Arya
Share Transfer / Investor's Grievances Committee :	Mr. Adarsh Gupta Mr. Sunil Bansal Mr. Prem Chand Garg
Name :	Mr. Munish Kakra
Designation :	Company Secretary and Vice President

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.20111)

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	6793490	39.87
Bodies Corporate	4472517	26.25
Sub Total	11266007	66.12
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	11266007
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	13600	0.08
Sub Total	13600	0.08
(2) Non-Institutions
Bodies Corporate	485802	2.85
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	2352085	13.80
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1001738	5.88
Any Others (Specify)	1920768	11.27
Directors and their relatives and friends	400	--
Non Resident Indians	55407	0.33
Clearing Members	14026	0.08
Hindu Undivided Families	1850935	10.86
Sub Total	5760393	33.81
Total Public shareholding (B)	5773993	33.88
Total (A)+(B)	17040000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	--	--
(1) Promoter and Promoter Group	--	--
(2) Public	--	--
Sub Total	--	--
Total (A)+(B)+(C)	17040000	--

BUSINESS DETAILS

Line of Business :

Manufacturing and selling of leather and non-leather shoes, leather shoe uppers and leather garments.

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Units	Licensed Capacity
Leather Garments	Nos.	100000
Leather shoes	Pairs	5500000
Leather Shoe uppers	Pairs	3000000
Non Leather Shoe Uppers	Pairs	11500000
Soles and Heels of Rubber or Plastic	Pairs	10000000
Hawai Chappals	Pairs	40000000
EVA Co-polymer Compound	Tonnes	2000

Particulars	Units	Installed Capacity
		Owned	On Franchise Basis
Shoes (Leather and Non Leather)	Pairs	7476000	3124000
EVA Co-polymer Compound	Tonnes	600	--
Soles	Pairs	--	960000

Particulars	Units	Actual Production
Non Leather shoes	Pairs	4890132
Leather Shoes	Pairs	2844208
Leather uppers	Pairs	1160412
Non Leather Shoe Uppers	Pairs	3706093
EVA Compound	Kgs.	211788
PU/PVC/EVA Soles	Pairs	1236010

GENERAL INFORMATION

No. of Employees :

1565 (Approximately)

Bankers :

· HDFC Bank Limited

· Corporation Bank

· Central Bank

· Central Bank of India

· Indusland Bank Limited

· The Hong Kong and Shanghai Banking Corporation Limited

· The Royal Bank of Scotland N.V

Facilities :

(Rs. in millions)

Secured Loans	As on 31.03.2011	As on 31.03.2010
Term Loan
From Banks: [includes Rs.15.274 millions (Previous Year: Rs.18.575 millions) repayable within one year] [Secured by equitable mortgage of land situated at Village Bhagwanpur, Roorkee, Uttarakhand and by way of 1^st charge on building situated at Libertypuram and whole of the movable and Immovable Plant and Machinery, machinery spares, tools and accessories, etc. and by way of hypothecation of vehicles. ]	91.255	22.371
From Others [includes Rs.1.521 millions (previous Year: Rs. Nil) repayable within one year] [Secured by way of hypothecation of vehicles]	3.798	0.000
Working Capital Loans [Secured against hypothecation of Company’s entire stock of raw material, stock in process, finished goods in stores, in transit and with shippers at port awaiting shipment for exports, receivables, cheques, bank drafts and all other current assets and 2^nd pari-passu charge on Plant and Machinery]	860.518	728.061
Total	955.571	750.432

(Rs. in millions)

Unsecured Loans	As on 31.03.2011	As on 31.03.2010
Security Deposits	30.605	27.899
Short Term Loans and Advances
- From Banks	0.000	0.000
- From Others	44.500	100.00
Accrued Interest	0.000	0.000
Total	75.105	127.899

Banking Relations :	--
Auditors :
Name :	Pradeep Tayal and Company Chartered Accountants
Address :	Indian Bank Building, G. T. Road, Panipat-132103, Haryana, India
Subsidiary Companies :	· Liberty Retail Revolutions Limited · Liberty Foot Fashion Middle East FZE
Entities where Key Management Personnel/Relative of Key Management Personnel has significant influence :	· Geofin Investments Private Limited · Liberty Group Marketing Division · Liberty Enterprises · Liberty Footwear Company · Sanjeev Bansal Charitable Trust · Liberty Innovative Outfits Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
51000000	Equity Share	Rs.10/- each	Rs.510.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
17040000	Equity Share	Rs.10/- each	Rs.170.400 millions

Note:

Out of the above 8520000 Equity Shares (Previous Year 8520000) issued by way of Bonus Equity Shares.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		170.400	170.400	170.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1245.857	1145.030	1052.999
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1416.257	1315.430	1223.399
LOAN FUNDS
1] Secured Loans		955.571	750.432	826.533
2] Unsecured Loans		75.105	127.899	190.330
TOTAL BORROWING		1030.676	878.331	1016.863
DEFERRED TAX LIABILITIES		55.367	59.634	65.289
TOTAL		2502.300	2253.395	2305.551
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		864.809	832.825	846.449
Capital work-in-progress		10.516	0.000	1.292
INVESTMENT		179.429	175.019	203.399
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	812.787	697.139	672.725
	Sundry Debtors	776.671	684.515	704.322
	Cash & Bank Balances	27.944	41.339	51.468
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	359.964	296.897	281.665
Total Current Assets		1977.366	1719.89	1710.180
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	414.263	357.054	345.029
	Other Current Liabilities	100.764	102.885	97.490
	Provisions	14.793	14.400	13.250
Total Current Liabilities		529.820	474.339	455.769
Net Current Assets		1447.546	1245.551	1254.411
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2502.300	2253.395	2305.551

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2969.403	2606.686	2404.438
		Other Income	12.815	7.346	14.079
		TOTAL (A)	2982.218	2614.032	2418.517
Less	EXPENSES
		Raw Materials Consumed and Finished Goods Purchased	1574.930	1385.293	1164.316
		Manufacturing Expenses	247.849	205.369	180.868
		Payments and Benefits to Employees	356.790	270.317	209.186
		Administration, Selling and Miscellaneous Expenses	586.207	516.096	491.045
		Increase/(Decrease) in Stocks	(34.912)	(16.104)	117.879
		Excise Duty	0.391	2.003	(9.232)
		TOTAL (B)	2731.255	2362.974	2154.062
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		250.963	251.058	264.455
Less	FINANCIAL EXPENSES (D)		82.089	89.918	125.641
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		168.874	161.140	138.814
Less/ Add	DEPRECIATION/ AMORTISATION (F)		68.094	67.925	65.946
	PROFIT BEFORE TAX (E-F) (G)		100.780	93.215	72.868
Less	TAX (H)		2.115	3.506	2.584
	PROFIT AFTER TAX (G-H) (I)		102.895	96.721	75.452
Less	TAXATION ADJUSTMENTS OF PREVIOUS YEAR		(2.068)	(4.690)	(0.253)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		375.900	343.869	328.659
Less	APPROPRIATIONS
		Transfer to General Reserve	60.000	60.000	60.000
	BALANCE CARRIED TO THE B/S		416.727	375.900	343.858
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export of Finished Goods	429.882	367.898	377.978
	TOTAL EARNINGS		429.882	367.898	377.978
	IMPORTS
		Raw Materials	107.910	80.878	67.991
		Stores & Spares	4.902	0.983	7.047
		Capital Goods	34.154	5.740	12.228
	TOTAL IMPORTS		146.966	87.601	87.266
	Earnings Per Share (Rs.)		6.04	5.68	4.43

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011
Type	1^st Quarter	2^nd Quarter
Net Sales	721.230	797.050
Total Expenditure	670.040	733.700
PBIDT (Excl OI)	51.190	63.350
Other Income	0.000	0.000
Operating Profit	51.190	63.350
Interest	23.660	28.940
Exceptional Items	0.000	0.000
PBDT	27.530	34.410
Depreciation	16.830	18.240
Profit Before Tax	10.700	16.170
Tax	(1.080)	(0.910)
Provisions and contingencies	0.000	0.000
Profit After Tax	11.780	17.080
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	11.780	17.080

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.45	3.70	3.12
Net Profit Margin (PBT/Sales)	(%)	3.39	3.57	3.03
Return on Total Assets (PBT/Total Assets}	(%)	3.55	3.65	2.85
Return on Investment (ROI) (PBT/Networth)		0.07	0.07	0.06
Debt Equity Ratio (Total Liability/Networth)		1.10	1.03	1.20
Current Ratio (Current Asset/Current Liability)		3.73	3.63	3.75

LOCAL AGENCY FURTHER INFORMATION

REVIEW OF THE OPERATIONS OF THE COMPANY:

The Company, during the year, further strengthened its operations through the on going implementation of distinctive concept involving its reach, its process of replenishment etc for improvement of the Company's operations The Directors are satisfied with its results delivered so far and hopeful that with its roll over further, the Company’s all around performance would improve in the long run.

The Company, during the yea, achieved Gross Sates of 73053.002 Millions (Previous year Rs. 2661.148 Millions) and Net Safes of Rs. 2969.402 Millions (Previous yearRs.2606.686 millions) by registering a growth of 14.72% and 13.91% respectively as compared to the previous year. The Company has earned a Profit after Tax of Rs. 102.895 millions (Previous year Rs.96.721 Millions) for this period, an increase of over 6.38% against the previous year. The profits for the year under consideration were impacted mainly on account of higher input costs including the employees cost. The Company believes that with its strong brand equity, it can partially pass on the impact of increase in its input costs to the consumers and can reduce the impact to certain extent.

The Company, during the year on consolidated basis, achieved a turnover of Rs.3182.623 Millions as compared to Rs. 2740.528 Millions in the previous year by registering a growth of 16.13% as compared to the previous year. The net profits on consolidated basis were 760.621 Millions as compared to Rs.41.191 Millions in the previous year for this period, an increase of over 47.17% against the previous year.

The members are aware that Indian economy during the year 2011 commenced its recovery on a positive note with high growth and positive sentiments but narrowed down during the fourth quarter of the year. The major challenge to the growing Indian economy and the prevailing feel good factor was mounting food inflation affecting the rest of the economy significantly. The Company, in order to mitigate these challenges, has implemented requisite measures to improve sustainability of the Company's operations.

Awards /Recognitions:

• Liberty has been ranked amongst the Top 100 Best Retailers for the year 2011 in the annual survey by one of the leading Business Opportunity Magazine - "The Franchising World".

• Liberty has been awarded, the Franchisor of the Year first Runner-up. at Franchise Plus Awards 2010 in recognition of its franchisee business model.

• Liberty has been associated as the official Foot Fashion partner of Pantaloon Femina Miss India Contest 2011. The contestants have chosen Liberty for the contest recognising excellence of the Company's products. Corporate Social Responsibility:

Liberty has always endeavored for the betterment of society and for discharging its responsibilities towards the society at large. Some of the social initiatives undertaken by Liberty are as under:

• Distribution of free shoes and chappals to needy and under privileged children.

• Organising free medical health check up camps at regular intervals

• Sponsorship of sports and other cultural events

• Environmental improvement by providing greenery and planting of trees at its plants.

Subsidiary Companies:

Liberty Retail Revolutions Limited (LRRL), Retail Venture

In view of the huge potential and the promising future of organised retailing in India. LRRL has been expanding its retail presence over the years.

The year under consideration has been best performing year for LRRL since inception interms of its sales and overall performance. LRRL. during the year 2011. has achieved aturnover of 74799.73 Millions (Previous year 73513.82 Millions) by registering a growth of 37% asagainst the previous year Geofin Investments Private Limited, other constituent of LRRL shareholder(s), has further extended its support by subscribing share application to the extent of Rs. 550 Millions during the year under consideration.

The Company presently holds 99,96,150 Equity Shares constituting 93.86% stake inRetail Subsidiary in addition to its holding of 5,00,000 Fully Convertible Debentures of the face value of Rs.100 each aggregating to Rs. 50.000 Millions.

Liberty Foot Fashion Middle East FZE (LFF). Dubai (Wholly Owned Subsidiary)

You are aware that LFF. a Wholly Owned Subsidiary of the Company, was conceived in 2006to strengthen and expand the Company's global presence But due to prevailing uncertainty in global economy, LFF till date has not formalised any sustainable project for commencing its business activities. LFF will keep on exploring the appropriate opportunities for commencing its operations at the earliest possible.

The Company till 31st March. 2011 has invested a sum of Rs. 29.467 Millions (Previous YearRs.25.058 Millions) in LFF as its capital contribution

General Approval for not attaching the Annual Accounts of the Subsidiary Companies

The Board of Directors have accorded their consent vide Resolution passed in their Meeting held on 10th May. 2011 for not attaching a copy of the Balance Sheet Profit and Loss Account. Reports of Directors and Auditors of the Subsidiary Companies with the Annual Audited Accounts of the Company pursuant to Section 212 of the Companies Act. 1956read with General Circular No. 2/2011 dated February 8, 2011 issued by Ministry of Corporate Affairs. Accordingly. the copies of Balance Sheet. Profit and Loss Account Reports of Directors and Auditors of the two Subsidiary Companies have not been attached with the Balance Sheet of the Company. However, these documents shall be made available to the shareholders of the Company and of Subsidiary Companies on any working day from 10.00A.M. till 6.00 PM. The Annual Accounts of the Subsidiary Companies are open for inspection by any investor at the Registered Office of the Company and of the Subsidiary Companies Any shareholder of the Company, who wishes to obtain a copy of the said Annual Accounts ofthe Subsidiary Companies, may send a request in writing to the Company Secretary at the Registered Office of the Company so that the needful can be done.

However, a statement containing the brief financial details of the subsidiary Companies for the financial year ended 31st March. 2011 is included in the financial statements of the Company as required under the provisions of Section 212 of the Companies Act 1956. The aggregate amount of a) Capital b) Reserves c) Total Assets d) Total Liabilities e) Detail of Investment (except investment in subsidiaries) 1) Turnover g) Profit Before Taxation h)Provision For Taxation i) Profit After Taxation j) Proposed Dividend in respect of two Subsidiary Companies are included in the Consolidated Balance Sheet of the Company. Further, the Consolidated Financial Statements, pursuant to the Accounting Standard(s) 21and 27 as issued by the Institute of Chartered Accountants of India and Clause 32 of Listing Agreement, have been presented by the Company elsewhere in this Annual Report including the financial results of its subsidiaries.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

Indian Economy-Outlook

Indian economy in the recent times has benefitted fro strong domestic demand and a resumption of investor sentiments although higher interest rates are expects to trim the overall growth rate. Improved external demand and stronger capital inflows have also played a positive role. A reasonably good monsoon has helped the agriculture sector and has boosted rural demand as well. It is estimated that India will have GDP growth rate for 2011-12 at 8.2% s compared to 8.5% registered last year which still provide India a foremost position amongst growing and emerging economies.

At global front, domestic consumption is on the emerging economies and those economies including India are now front running the global economic expansion.

The Company considering the economic growth of India, has potential to maintain its path of growth like earlier with buoyancy of registering new growth rate in forthcoming year by improving its overall performance.

The India Footwear Industry-Structure and Development

During the year 2010-11, the export of leather and leather products touched to Rs.175180.000 millions as agaist the performance of Rs.161520.000 millions in the corresponding period of last year recording a positive growth of 8.46%.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2011

(Rs. In Millions)

Particulars	31.09.2011 Quarter Ended	31.09.2011 Half year Ended
	Unaudited
Gross Sales	831.235	1573.705
- Domestic	729.424	1383.270
- Exports	101.811	190.435
Less : Excise Duty	35.286	58.766
(a) Net Sales/ Income from Operations	795.949	1514.939
(b) other Operating Income	1.102	3.729
Total Income	797.051	1518.668
Expenditure
(Increase)/Decrease In Stock-in-trade	(13.929)	(27.293)
Consumption of Raw Materials	393.434	703.375
Purchase of Traded Goods	38.906	113.745
Employee Cost	88.888	179.215
Depreciation	18.237	35.067
Other Expenditure	226.403	435.089
Total Expenditure	751.939	1439.198
Profit from Operations before Other Income, Interest, Exchange Currency Fluctuation and Exceptional Items	45.112	79.470
Other Income	0.000	0.000
Profit before Interest, Exchange Currency Fluctuation and Exceptional Items	45.112	79.470
Interest and Finance Charges	28.939	52.595
Profit after Interest but before Exchange Currency Fluctuation and Exceptional Items	16.173	26.875
Exceptional Items	0.000	0.000
Profit from Ordinary Activities before Tax	16.173	26.875
Tax Expenses	(0.909)	(1.987)
- Current year (Net of MAT Credit Entitlement)	0.199	0.405
- Tax related to earlier years	0.095	0.095
- Deferred Tax Liability	(1.203)	(2.487)
- Fringe benefits tax	0.000	0.000
Net Profit from Ordinary Activities after Tax	17.082	28.862
Extra Exceptional Items	0.000	0.000
Net Profit for the period	17.082	28.862
Paid Up Equity Share Capital (Face Value Rs.10 per Share)	170.400	170.400
Reserves	0.000	0.000
Earning per share (EPS)
- Basic	1.00	1.69
- Diluted	1.00	1.69
Public Shareholding
- Number of Shares	5773993	5773993
- Percentage of Shareholding	33.89%	33.89%
Promoters and Promoter Group Shareholding
a) Pledged/ Encumbered
- Number of shares	--	--
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	--	--
- Percentage of shares (as a % of the total shareholding of the total share capital of the company)	--	--
b. Non-Encumbered
- Number of shares	11266007	11266007
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	100.00%	100.00%
- Percentage of shares (as a % of the total shareholding of the total share capital of the company)	66.11%	66.11%

STATEMENT OF ASSETS AND LIABILITY FOR THE HALF YEAR ENDED 30^TH SEPTEMBER, 2011

(Rs. In Millions)

Particulars	30.09.2011 Half Year Ended
	Unaudited
SOURCES OF FUNDS
Shareholders Funds
a) Capital	170.400
b) Reserves and surplus	1278.986
Loan Funds	1082.582
Deferred Tax Liability (Net)	48.613
Total	2580.581
APPLICATION OF FUNDS
Fixed Assets (Net)	883.391
Investment	179.437
Current Assets, Loans & Advances
a) Inventories	852.789
b) Sundry Debtors	873.574
c) Cash & Bank Balances	38.570
d) Other Current Assets	389.94
e) Loans & Advances	33177.755
Less : Current Liabilities & Provisions
a) Liabilities	621.161
b) Provisions	16.013
Miscellaneous Expenditure (Not written off or adjusted)	0.000
Profit and Loss Account	0.000
Total	2580.581

Notes:

1. The above given results have been received and recommended by the Audit Committee and have also been approved by the board in their Meeting held on 24^th October, 2011. The Statutory Auditors have also carried out their limited review of the aforesaid results.
2. The company did not have any investor’s complaints pending as on 1^st July, 2011 and as on 30^th September. Further no complaint was received by the company during the quarter under consideration.
3. The company business activities fall within the single segment i.e. Footwear in terms of Accounting Standard – 17 on segment reporting.
4. For the half year ended 30^th September, 2011, the consolidated turnover of the company (Inclusive of retail subsidiary0 stood at Rs.1666.823 Millions whereas the consolidated Net profits and EPS stood at Rs.12.484 Millions and Rs.0.73 respectively.
5. Previous period / year figures are regrouped / rearranged wherever necessary to confirm to the current period classification.

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Moulds

· Patents

· Furniture and Fixtures

· Vehicles

WEBSITE DETAILS:

BUSINESS DESCRIPTION:

Subject is engaged in leather footwear manufacturing and sales. As of March 31, 2010, the Company produced more than 50,000 pairs of footwear per day. The Company provides a product range that covers every age group. The Company’s products are marketed worldwide through 150 distributors, 350 showrooms and over 6,000 multi-brand outlets, and sold in approximately 25 countries, including France, Italy and Germany. Subject’s brands include Coolers, Fortune, Fore 10, Gliders, Windsor, Senorita, Tiptopp, Freedom, Warrior and Workman. The Company has two subsidiaries: Liberty Retail Revolutions Limited. and Liberty Foot Fashion Middle East FZE. As of March 31, 2010, the Company’s plants were located at Karnal at Haryana, Dehradun and Roorkee at Uttarkhand and in Ponta Sahib at Himachal Pradesh. For the fiscal year ended 31 March 2010, Subject’s revenues increased 3% to Rs. 2.700 Billions. Net income totaled Rs. 43.400 Millions vs. a loss of Rs. 52.700 Millions. Revenues reflect an increase in income from operations. Net income also reflects a decrease in administration, selling and miscellaneous expenses, lower interest and financial charges, a decrease in sales promotion expenses and an increase in gross and operating profit margins.

BOARD OF DIRECTORS:

Mr. Adesh Kumar Gupta

Executive Chairman of the Board, Chief Executive Officer

He is B.E (Mechanical Engineering) by profession having more then two decades of Industrial Experience in the footwear Industry. He is a second generation entrepreneur of Liberty Group. He was appointed on the Board in the year 1990 and was later promoted as Executive Director in 2001. He has been working as Chief Executive Officer of the Company since 2004. He is having an experience of more than two decades in Footwear Industry. As a Chief Executive Officer, he has been instrumental in formulating Company’s strategies and providing his vital contribution for the effective functioning of the Company. Apart from above, he also serves various other Companies with a string of diversification in the Retailing and Telecom sectors. He has been embraced by many prestigious awards and in the past, he has been a key functionary of Confederation of Indian Industry.

Mr. Shammi Bansal

Executive Director

He is a Graduate and having undergone training in shoe manufacturing at various overseas plants. He was appointed on the Board of the Company in September 1990. He has been entrusted the responsibility of monitoring production of footwear at the various Company facilities. He was elevated to the level of Executive Director in 1995. He has tremendous experience in the manufacturing and managing of footwear business.

Mr. Sunil Bansal

Executive Director

He has been acting as Director with the Company since 1990. He is representing the Promoter Group on the Board and apart from taking its international business, also guiding leather shoes production team with his experience.

Mr. Satish Kumar Goel

Director - Law and Taxation, Executive Director

He is an Advocate and eminent tax practitioner who initially joined the board in July 2001 as an Independent Director. He was designated as Director (Law and Taxation) by Board of Directors of the Company at their Meeting held on 16 January, 2006 for a period of 5 (five) years, w.e.f. 1 April, 2006. He has been spear heading the Legal Department of the Company by providing his experience in the areas 01 taxation and legal matters.

Mr. Adarsh Gupta

Executive Director

He is a Commerce Graduate and holder of Diploma in Shoe Designing from ARS Sutoria Institute of Italy. He has been actively associated with the activities of PHD Chamber of Commerce and Industry New Delhi. He was appointed on the Board in the year 1990 and later elevated as Executive Director in the year 1995. Besides, he is also the Managing Director of Liberty Whiteware Limited a Company engaged in manufacturing and marketing of ceramic sanitary wares.

Mr. Adesh Kumar Gupta

Executive Chairman of the Board, Chief Executive Officer

He is B.E (Mechanical Engineering) by profession having more then two decades of Industrial Experience in the footwear Industry. He is a second generation entrepreneur of Liberty Group. He was appointed on the Board in the year 1990 and was later promoted as Executive Director in 2001. He has been working as Chief Executive Officer of the Company since 2004. He is having an experience of more than two decades in Footwear Industry. As a Chief Executive Officer, he has been instrumental in formulating Company’s strategies and providing his vital contribution for the effective functioning of the Company. Apart from above, he also serves various other Companies with a string of diversification in the Retailing and Telecom sectors. He has been embraced by many prestigious awards and in the past, he has been a key functionary of Confederation of Indian Industry.

PRESS RELEASE:

Revised disclosures under Reg. 8A(4) of SEBI (SAST) Regulations, 1997

Accord Fintech (India)

22 November 2011

With reference to earlier disclosure dated October 21, 2011Liberty Shoes Limited has now submitted the revised disclosure under Regulation 8A(4) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 to BSE Date of Reporting : October 07, 2011Name of the Company : Liberty Shoes Limited Total no of outstanding shares of the Company : 1,70,40,000Name of the Entity: Adarsh Gupta Details of Transaction Date of Transaction : October 03, 2011Number of Shares pledged : 6,25,000 Aggregate details after the transaction Total no of shares held by the entity in the company: 6,91,000Total No of shares pledged : 6,25,000% of total shares pledged to total no of shares held by the entity in the Company : 90.448%% of shares pledged to total no of outstanding shares of the Company : 3.667%

Liberty Shoes to raise Rs 5000.000 millions for expansion of retail stores

Accord Fintech (India)

07 November 2011

In a bid to expand its retail stores apart from modernizing infrastructure in terms of distribution and warehousing over the next three years, Footwear company Liberty Shoes is planning to raise capital to the tune of Rs 5000.000 millions for various projects within the ambit of the shoe industry for expansion projects. However, the company refused to disclose investment details. The company is eyeing a 15-20% growth in revenues this fiscal from Rs 3060.000 millions last year. It has a 10% market share in the Rs 30000.000 Millions organized shoe market, which is growing at 10% annually. The company's merchandising segment, with bags, purses, belts and socks, contributes 10% of its sales. The company operates 30 stores in Dubai, Kuwait, Jordan, Saudi Arabia, Fiji and Singapore through franchisees. Liberty Shoes manufactures stylish footwear for all age group and gender. Its in-house research and development team focuses on developing new design for footwear segment. The company has created brands like Coolers, Freedom, Footfun, Fortune, Gliders, Senorita, Tiptopp, Perfect, Fortune, Force 10 among others.

CARE assigns BBB+ rating to Liberty Retail Revolutions bank loans

EquityBites
02 November 2011

2 November 2011 - Rating agency CARE today set a BBB+ rating to the INR100m (USD2m/EUR1.5m) long-term bank facilities of Indian leather and non-leather footwear maker Liberty Retail Revolutions Limited (LRRL).

The rating is based on the credit enhancement via unconditional and irrevocable guarantee provided for the bank facilities of LRRL by its holding company Liberty Shoes Limited (LSL). LRRL was created in 2004 to manage the retail operations of the Liberty Group.

The credit profile of LSL is supported by the experienced promoters, the long track record of the company and the established brand name in the footwear industry.

The rating is constrained by LRRL's declining profitability margins due to intense competition, working-capital intensive nature of operations and modest performance.

The future of the rating is contingent upon the ability of Liberty Shoes Limited to shift its retail business and improve profitability margins, while maintaining its capital structure.

CARE gives BBB+ rating to Liberty Retail Revolutions' bank facilities

Aii Data Processing Limited

02 November 2011

(See News) - Nov 2, 2011 - Rating agency CARE today set BBB+ rating on the INR-100-million (USD 2m/EUR 1.5m) long-term bank facilities of Indian leather and non-leather footwear maker Liberty Retail Revolutions Limited (LRRL).

The rating is based on the credit enhancement via unconditional and irrevocable guarantee provided for the bank facilities of LRRL by its holding company Liberty Shoes Limited (LSL). LRRL was created in 2004 to manage the retail operations of the Liberty Group.

The credit profile of LSL is supported by the experienced promoters, the long track record of the company and the established brand name in the footwear industry.

The rating is constrained by LRRL's declining profitability margins due to intense competition, working-capital intensive nature of operations and modest performance.

The future of the rating is contingent upon the ability of Liberty Shoes Limited to shift its retail business and improve profitability margins, while maintaining its capital structure.

Liberty Shoes Q2 net declines to Rs 170.800 millions

Press Trust of India

23 October 2011

Mumbai, October 24, 2011 (PTI) -- Liberty Shoes Limited has posted a 50.13 per cent decline in net profit for the second quarter ended September 30, 2011 at Rs 170.800 millions due to high interest costs

The company's net profit during the three months ended September 30, 2010 was Rs 342.500 millions.

Liberty Shoes' net sales during the quarter grew 13.96 per cent at Rs 795.900 millions, as compared to Rs 69.84 in the quarter ended September 30, 2010, it said in a filing to the BSE

The firm's scrip closed at Rs 82.60, down 0.30 per cent from the previous close on the BSE. PTI VJR RAH MR 10241946 (THROUGH ASIA PULSE)

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 records 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 records 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.51.39
UK Pound	1	Rs.80.20
Euro	1	Rs.68.92

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--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	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		52

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.