MIRA INFORM REPORT

1. Summary Information

		Country	India
Company Name	FLORENCE SHOE COMPANY PRIVATE LIMITED	Principal Name 1	Mr. Panaruna Aqeel Ahmed
Status	Satisfactory	Principal Name 2	Mr. Nattamkar Ishrath Khatoon
		Registration #	18-007585
Street Address	Florence Centre 50/69, E. V. K. Sampath Road, Vepery, Chennai – 600 007, Tamilnadu, India
Established Date	28.08.1978	SIC Code	--
Telephone#	91-44-25366999/25365199/52606062/52606092/ 42606062/25365199	Business Style 1	Manufacturer
Fax #	91-44-25361092/28260809/52606082/52606062/42606082	Business Style 2	Exporter
Homepage	http://www.florence.co.in	Product Name 1	Leather Shoe Uppers
# of employees	Not Available	Product Name 2	Full Shoes.
Paid up capital	Rs. 5,000,000/-	Product Name 3
Shareholders	Directors or relatives of Directors (100.00%)	Banking	State Bank of India
Public Limited Corp.	NO	Business Period	33 Years
IPO	NO	International Ins.	-
Public Enterprise	NO	Rating	Ba (46)
Related Company
Relation	Country	Company Name	CEO
Associates	India	Abdul Shukoor and Company	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2010		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	258,964,000	Current Liabilities	536,483,000
Inventories	85,121,000	Long-term Liabilities	00
Fixed Assets	274,337,000	Other Liabilities	11,860,000
Deferred Assets	00	Total Liabilities	548,343,000
Invest& other Assets	575,000	Retained Earnings	65,654,000
		Net Worth	70,654,000
Total Assets	618,997,000	Total Liab. & Equity	618,997,000
Total Assets (Previous Year)	675,712,000
P/L Statement as of	31.03.2010		(Unit: Indian Rs.)
Sales	1,727,343,000	Net Profit	11,802,000
Sales(Previous yr)	1,739,785,000	Net Profit(Prev.yr)	8,591,000

MIRA INFORM REPORT

Report Date :

29.09.2011

IDENTIFICATION DETAILS

Name :	FLORENCE SHOE COMPANY PRIVATE LIMITED

Registered Office :	69, E.V.K Sampath Road, Chennai – 600007, Tamilnadu

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	28.08.1978

Com. Reg. No.:	18-007585

Capital Investment / Paid-up Capital :	Rs. 5.000 Millions

CIN No.: [Company Identification No.]	U19129TN1978PTC007584

TAN No.: [Tax Deduction & Collection Account No.]	CHEF03160D

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer, Exporter and Importer of Leather Shoe Uppers and Full Shoes.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 280000

Status :	Satisfactory

Payment Behaviour :	Usually Correct

Litigation :	Clear

Comments :	Subject is a n established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – June 30, 2010

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

India

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

LOCATIONS

Registered Office :	Florence Centre 50/69, E. V. K. Sampath Road, Vepery, Chennai – 600 007, Tamilnadu, India
Tel. No.:	91-44-25366999/25365199/52606062/52606092/ 42606062/25365199
Fax No.:	91-44-25361092/28260809/52606082/52606062/42606082
E-Mail :	florence@vsnl.com, centre@florence.co.in finance@florence.co.in
Website :	http://www.florence.co.in
Area :	5000 Sq. ft
Location :	Owned

Corporate Office :	Florence Centre, 12, College Road, Chennai – 600 006, Tamilnadu

Factory 1 :	SHOE DIVISION Vellore, Tamilnadu

Factory 2 :	LEATHER DIVISION (TANNERY) Ambur, Tamilnadu

DIRECTORS

As on 30.09.2010

Name :

Mr. Panaruna Aqeel Ahmed

Designation :

Managing Director

Address :

5/16, Sterling Road, 1^st Cross Street, Chennai – 600 034, Tamilnadu, India

Date of Birth/Age :

17.05.1964

Date of Appointment :

31.03.1995

DIN No.:

00225381

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	U73100TN1993GAP026146	AMBUR FDDI SHOE TECHNOLOGY CENTRE	Director	03/11/1993	03/11/1993	-	Active	NO
2	U19129TN1978PTC007584	FLORENCE SHOE COMPANY PRIVATE LIMITED	Managing director	31/03/1995	31/03/1995	-	Active	NO

Name :

Mr. Nattamkar Ishrath Khatoon

Designation :

Director

Address :

5/16, Sterling Road, 1^st Cross Street, Chennai – 600 034, Tamilnadu, India

Date of Birth/Age :

18.11.1968

Date of Appointment :

31.09.1996

DIN No.:

00225387

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	U19129TN1978PTC007584	FLORENCE SHOE COMPANY PRIVATE LIMITED	Director	30/09/1996	30/09/1996	-	Active	NO
2	U19200TN2010PTC075485	LUGANO SHOES PRIVATE LIMITED	Director	27/04/2010	27/04/2010	-	Active	NO

Name :

Mr. Panaruna Mohammed Sannan

Designation :

Director

Address :

5/16, Sterling Road, 1^st Cross Street, Chennai – 600 034, Tamilnadu, India

Date of Birth/Age :

14.10.1988

Date of Appointment :

18.12.2006

DIN No.:

00928743

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	U19129TN1978PTC007584	FLORENCE SHOE COMPANY PRIVATE LIMITED	Director	18/12/2006	18/12/2006	-	Active	NO
2	U19200TN2010PTC075485	LUGANO SHOES PRIVATE LIMITED	Director	27/04/2010	27/04/2010	-	Active	NO

KEY EXECUTIVES

Name :	Mr. S Saraskumar and Associates
Designation :	Company Secretary
Address :	25/1, Karnan Street, 1^st floor, Vathiyar Thottam, Kodambakkam, Chennai – 600 024
Tel No:	91-44-24832294
E-Mail:	www.sarask@vsnl.net

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders		No. of Shares
P R Aqeel Ahmed		18916
N. Ishrath Khatoon		16084
P R Mohammed Raiyan		5000
P R Mohammed Sannam		5000
P. R. Lina Mariam		5000
	Total	50000

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Leather Shoe Uppers and Full Shoes.

Products :

Product Description	ITC Code No.

Finished Leather	41061909
Full Shoes	64035111
Shoe Uppers	--

Exports :

Countries :

Denmark, Italy, Portugal, England, Japan, Germany, Europe, USA, Australia and Cyprus.

PRODUCTION STATUS

As on 31.03.2010

Particulars	Unit	Actual Production

Full Shoes	Pairs	1395036

GENERAL INFORMATION

No. of Employees :	Not Available

Bankers :	v State Bank of India, Overseas Branch, Rajaji Salai, Chennai – 600 001, Tamilnadu v State Bank of India, Leather International Branch, Kilpauk, Chennai – 600010


Banking Relations :

Auditors :
Name :	R. Venkatramani and Company Chartered Accountants
Address :	12 (Old No. 7) Thiru Vi Ka 3^rd Street, Royapettah High Road, Mylapore, Chennai – 600004
PAN.:	AACPV5424B

Associates/Subsidiaries :	Abdul Shukoor and Company Activity : This firm is engaged in the tanning of finished leather and the entire production is utilised by Florence Shoe Company Limited

CAPITAL STRUCTURE

As on

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

50000	Equity Shares	Rs.100/- each	Rs. 5.000 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		5.000	5.000	5.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		65.654	53.851	45.261
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		70.654	58.851	50.261
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		7.010	6.937	6.237

TOTAL		77.664	65.788	56.498

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		274.337	286.304	272.111
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.575	0.575	0.575
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	85.121	153.346	197.964
	Sundry Debtors	142.191	117.249	146.986
	Cash & Bank Balances	30.650	15.855	13.144
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	86.123	102.383	142.649
Total Current Assets		344.085	388.833	500.743
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	532.868	584.152	681.158
	Other Current Liabilities	3.615	9.447	21.698
	Provisions	4.850	16.325	14.075
Total Current Liabilities		541.333	609.924	716.931
Net Current Assets		(197.248)	(221.091)	(216.186)

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		77.664	65.788	56.498

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Turnover	1727.343	1739.785	1715.968
		TOTAL	1727.343	1739.785	1715.968

Less	EXPENSES		1710.782	1728.244	1748.386
		TOTAL	1710.782	1728.244	1748.386


	PROFIT/LOSS BEFORE TAX		16.561	11.541	(32.418)

Less	TAX		4.759	2.950	2.150

	PROFIT/ LOSS AFTER TAX		11.802	8.591	(34.568)

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		34.815	26.225	60.792

	BALANCE CARRIED TO THE B/S		46.617	34.816	26.224

	EARNINGS IN FOREIGN CURRENCY		1503.352	1510.851	1501.059

	IMPORTS		236.137	285.715	222.710

	Earnings Per Share (Rs.)		236.04	171.82	(691.36)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.68	0.49	(2.01)

Return on Total Assets (PBT/Total Assets}	(%)	2.68	1.71	(4.19)

Return on Investment (ROI) (PBT/Networth)		0.23	0.20	0.65

Debt Equity Ratio (Total Liability/Networth)		7.66	10.36	14.26

Current Ratio (Current Asset/Current Liability)		0.64	0.64	0.70

LOCAL AGENCY FURTHER INFORMATION

FIXED ASSETS

Land
Factory Building Block
Sole Factory Building
Building Administration Block
R O Plant Building
Plant and Machinery
Office Equipments
Equipment
Furniture and Fixtures
Electrical Fittings
Generator
Motor Vehicles
Cycle
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 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.48.91
UK Pound	1	Rs.76.53
Euro	1	Rs.66.43

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

SHOE DIVISION

LEATHER DIVISION (TANNERY)

85.121

142.191

30.650

0.000

86.123

344.085

532.868

3.615

4.850

541.333

(197.248)

0.68

2.68

0.23

7.66

0.64

Unit