MIRA
INFORM REPORT

Report Date :

20.12.2012

IDENTIFICATION DETAILS

Name :

CHAUSSURES ERAM

Registered Office :

Eram Sa - Service
Juridiqu Compta Mag S5 St Pierre Montlimart, 49110

Country :

France

Financials (as on) :

31.12.2011

Date of Incorporation :

15.01.1977

Reg. No.:

775610306

Legal Form :

Private Subsidiary

Line of Business :

Subject is engaged in retail sale of footwear; and retail
sale of leather goods.

No. of Employees :

84

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal
commitments.

Satisfactory

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Clear

NOTES :

Any query related to this report can be made
on e-mail: [email-masked]
while quoting report number, name and date.

ECGC Country Risk Classification List – June 30th, 2012

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

France

A1

A1

Risk Category

ECGC
Classification

Insignificant

A1

Low

A2

Moderate

B1

High

B2

Very High

C1

Restricted

C2

Off-credit

D

France - ECONOMIC OVERVIEW

France was transitioning from an economy that has featured
extensive government ownership and intervention to one that relies more on
market mechanisms but is in the midst of a euro-zone crisis. The government has
partially or fully privatized many large companies, banks, and insurers, and
has ceded stakes in such leading firms as Air France, France Telecom, Renault,
and Thales. It maintains a strong presence in some sectors, particularly power,
public transport, and defense industries. With at least 75 million foreign
tourists per year, France is the most visited country in the world and
maintains the third largest income in the world from tourism. France's leaders
remain committed to a capitalism in which they maintain social equity by means
of laws, tax policies, and social spending that reduce income disparity and the
impact of free markets on public health and welfare. France's real GDP
contracted 2.6% in 2009, but recovered somewhat in 2010 and 2011. The
unemployment rate increased from 7.4% in 2008 to 9.3% in 2010 and 9.1% in 2011.
Lower-than-expected growth and increased unemployment have cut government
revenues and increased borrowing costs, contributing to a deterioration of
France's public finances. The government budget deficit rose sharply from 3.4%
of GDP in 2008 to 7.5% of GDP in 2009 before improving to 5.8% of GDP in 2011,
while France's public debt rose from 68% of GDP to 86% over the same period.
Under President SARKOZY, Paris implemented austerity measures that eliminated
tax credits and froze most government spending in an effort to bring the budget
deficit under the 3% euro-zone ceiling by 2013 and to highlight France's
commitment to fiscal discipline at a time of intense financial market scrutiny
of euro-zone debt levels. Socialist Francois HOLLANDE won the May 2012
presidential election, after advocating pro-growth economic policies, as well
as measures such as forcing banks to separate their traditional deposit taking
and lending activities from more speculative businesses, increasing taxes on
bank profits, introducing a new top bracket on income taxes for people earning
over €1 million ($1.3 million) a year, and hiring an additional 60,000
civil servants during his five-year term of office.

Source : CIA

Company name and address

CHAUSSURES ERAM

Eram Sa - Service
Juridiqu

Compta Mag S5

St Pierre Montlimart,
49110

France

Tel:                                           +33
02 41 75 32 00

Fax:                                          +33
02 41 75 32 38

Employees:                              84

Company Type:                         Private
Subsidiary

Corporate Family:                      19 Companies

Ultimate Parent:                         Eram

Incorporation Date:                    15-Jan-1977

Financials in:                             USD
(In Millions)

Fiscal Year End:                        31-Dec-2011

Reporting Currency:                   Euro

Annual Sales:                            260.1

Total Assets:                             424.7

Business Description

Chaussures Eram is primarily engaged in retail sale of
footwear; and retail sale of leather goods.

Industry

Industry

Retail
(Specialty)

ANZSIC 2006:

4279 -
Other Store-Based Retailing Not Elsewhere Classified

NACE 2002:

5243 -
Retail sale of footwear and leather goods

NAICS 2002:

448 -
Clothing and Clothing Accessories Stores

UK SIC 2003:

5243 -
Retail sale of footwear and leather goods

UK SIC 2007:

4772 -
Retail sale of footwear and leather goods in specialised stores

US SIC 1987:

5661 - Shoe
Stores

Key Executives

Name

Title

Xavier Biotteau

President

Luc Biotteau

General manager, Marketing director

Jean-Yves Paumeau

Director

Pierre Dadhanat

EDP manager

Yvon Domaigne

Commercial director

Registered No.(FRA):    775610306

1 - Profit & Loss Item Exchange Rate: USD 1 = EUR 0.7191895

2 - Balance Sheet Item Exchange Rate:
USD 1 = EUR 0.770327

Corporate
Overview

Location

Eram Sa - Service Juridiqu

Compta Mag S5

St Pierre Montlimart, 49110

France

Tel:                               +33
02 41 75 32 00

Fax:                              +33
02 41 75 32 38

Sales EUR(mil):             187.1

Assets EUR(mil):           327.2

Employees:                  84

Fiscal Year End:            31-Dec-2011

Industry:                       Retail
(Specialty)

Incorporation Date:        15-Jan-1977

Company Type:             Private
Subsidiary

Quoted Status:              Not
Quoted

Registered No.(FRA):                775610306

President:                                 Xavier
Biotteau

Industry Codes

ANZSIC 2006 Codes:

4279

-

Other Store-Based Retailing Not Elsewhere Classified

NACE 2002 Codes:

5243

-

Retail sale of footwear and leather goods

NAICS 2002 Codes:

448

-

Clothing and Clothing Accessories Stores

US SIC 1987:

5661

-

Shoe Stores

UK SIC 2003:

5243

-

Retail sale of footwear and leather goods

UK SIC 2007:

4772

-

Retail sale of footwear and leather goods in specialised
stores

Business Description

Chaussures Eram is primarily engaged in retail sale of
footwear; and retail sale of leather goods.

Financial Data

Financials in:

EUR(mil)

1 Year Growth

Revenue:

187.1

-1.7%

Assets:

327.2

NA

Current Assets:

53.8

Total Liabilities:

327.2

Issued Capital:

135.4

Net Worth:

240.6

Date of Financial Data:

31-Dec-2011

Subsidiaries

Company

Percentage Owned

Country

Chaussures Eram Schoenen Eram Sprl

Belgium

France Arno

France

Chaussures Eram (Suisse) Sa

Switzerland

Eram-Schuhe Gmbh

Germany

Key Corporate Relationships

Bank:    Societe Generale, Bnp Paribas, Banque Cic

Corporate
Structure News

Chaussures
Eram

Total Corporate Family Members: 19

Company Name

Company Type

Location

Country

Industry

Sales

(USD mil)

Employees

Eram

Parent

VÃªtir
SAS

Subsidiary

Saint Pierre Montlimart

France

Retail (Apparel)

1,005.0

3,525

Image De
Paris

Subsidiary

Melay

France

Footwear

8.1

374

De La
Grange

Subsidiary

Montjean Sur Loire

France

Footwear

4.5

224

Grange
London Boutique Ltd.

Subsidiary

Leamington Spa

United Kingdom

Retail (Specialty)

1.0

4

Gevrise

Subsidiary

Valanjou

France

Footwear

3.5

224

Belliere

Subsidiary

La Pommeraye

France

Footwear

2.8

149

Parmy

Subsidiary

La Poueze

France

Footwear

2.1

149

Eram
Services

Subsidiary

St Pierre Montlimart

France

Commercial Banks

149

Technisynthese

Subsidiary

St Pierre Montlimart

France

Footwear

77.3

85

Chaussures
Eram

Subsidiary

St Pierre Montlimart

France

Retail (Specialty)

260.1

84

France Arno

Subsidiary

St Pierre Montlimart

France

Retail (Specialty)

77.3

642

Eram-Schuhe
GmbH

Subsidiary

SaarbrÃ¼cken, Saarland

Germany

Retail (Specialty)

3

Eram Shop

Subsidiary

St Pierre Montlimart

France

Commercial Banks

74

Dresco

Subsidiary

Bonneuil Sur Marne

France

Apparel and Accessories

57.5

47

Passage

Subsidiary

Chalonnes Sur Loire

France

Footwear

5.1

34

Eram
Interservices

Subsidiary

St Pierre Montlimart

France

Apparel and Accessories

46.0

18

Chaussures
Lusi France

Subsidiary

Aubagne

France

Apparel and Accessories

3.0

8

Societe De
Diffusion Des Creations Bocage

Subsidiary

St Pierre Montlimart

France

Apparel and Accessories

8.9

6

Executives

Name

Title

Function

Xavier Biotteau

President

President

Luc Biotteau

General manager, Marketing director

Administration Executive

Jean-Yves Paumeau

Director

Administration Executive

Carine Visentin

Director

Administration Executive

Gilles Aballea

Accounts manager

Sales Executive

Pierre Dadhanat

EDP manager

Information Executive

Yvon Domaigne

Commercial director

Commercial Executive

Annual
Profit & Loss

31-Dec-2011

31-Dec-2010

31-Dec-2009

Period Length

12 Months

12 Months

12 Months

Filed Currency

EUR

EUR

EUR

Exchange Rate (Period
Average)

0.71919

0.755078

0.719047

Consolidated

No

No

No

Total income

262.2

255.6

281.4

Net sales

260.1

252.1

278.4

Change in stock

17.6

6.6

18.5

Subsidies for operating costs

0.0

0.0

-

Supplementary operating income

1.9

3.3

2.8

Other operating income

0.2

0.2

0.3

Other external charges

112.8

108.9

114.7

Cost of goods sold

109.5

118.3

123.3

Taxes and social security costs

2.7

2.6

3.3

Social charges

1.5

2.2

3.2

Total payroll costs

3.7

4.4

7.6

Cost of stock depreciation and amortisation

0.1

0.2

0.2

Fixed asset depreciation and amortisation

8.1

7.7

7.9

Other operating costs

0.8

0.6

1.3

Total operating costs

256.8

251.5

279.9

Net operating income

5.4

4.1

1.5

Total financial income

29.0

15.9

20.9

Interest payable on loans

3.4

3.9

8.1

Other expenses

0.7

0.0

1.3

Total expenses

4.1

3.9

9.4

Profit before tax

30.3

16.1

13.0

Extraordinary income

5.9

23.6

86.5

Extraordinary expenses

8.8

6.6

33.0

Extraordinary result

-3.0

17.0

53.5

Total taxation

0.8

-

-

Net profit

26.6

33.2

66.5

Annual
Balance Sheet

Financials in: USD (mil)

31-Dec-2011

31-Dec-2010

31-Dec-2009

Filed Currency

EUR

EUR

EUR

Exchange Rate

0.770327

0.745406

0.696986

Consolidated

No

No

No

Issued capital

175.8

181.6

134.0

Share premium account

23.9

24.7

20.4

Legal reserves

-

0.0

0.0

Total reserves

87.9

57.2

12.2

Profits for the year

24.8

33.6

68.6

Profit brought forward from previous year(s)

0.0

0.1

-19.6

Total stockholders equity

312.3

297.1

215.7

Provisions and allowances

1.8

1.1

1.6

Trade creditors

20.9

21.6

20.3

Bank loans and overdrafts

70.4

77.4

93.4

Current bank debts

32.5

33.5

35.9

Other loans

12.4

13.5

38.0

Other liabilities

3.6

2.1

1.6

Income stated in advance

-

-

0.0

Taxation and social security

3.2

3.2

5.4

Total current liabilities

72.9

75.1

84.2

Total debts

110.6

117.7

158.8

Regularisation account

-

-

0.0

Total liabilities (including net worth)

424.7

416.0

376.1

Patents

0.0

0.0

0.0

Goodwill

90.4

92.0

99.7

Other intangibles

0.0

0.0

0.0

Land

0.1

0.1

0.2

Buildings

17.4

20.1

24.1

Other fixed assets

6.6

7.5

10.1

Long-term investments

133.8

131.7

127.3

Other financial assets

106.5

74.5

5.2

Total non-current assets

354.9

326.0

266.7

Prepayments

-

-

0.0

Net stocks and work in progress

57.2

75.3

87.7

Trade debtors

8.2

7.2

14.1

Other receivables

2.2

4.0

3.9

Prepaid expenses

0.4

0.3

0.4

Cash and liquid assets

1.8

3.2

3.3

Total current assets

69.8

90.0

109.4

Total assets

424.7

416.0

376.1

Annual
Ratios

Financials in: USD (mil)

31-Dec-2011

31-Dec-2010

31-Dec-2009

Period Length

12 Months

12 Months

12 Months

Filed Currency

EUR

EUR

EUR

Exchange Rate

0.770327

0.745406

0.696986

Consolidated

No

No

No

Current ratio

1.00

1.20

1.30

Quick ratio

0.20

0.20

0.30

Total liabilities to net worth

0.50%

0.57%

1.37%

Net worth to total assets

0.52%

0.49%

0.31%

Collection period

10.20

8.60

14.90

Stock turnover rate

4.20

3.40

3.30

Asset turnover

0.57%

0.61%

0.76%

Profit margin

0.12%

0.06%

0.05%

Return on assets

0.07%

0.04%

0.04%

Shareholders' return

0.13%

0.08%

0.12%

Sales per employee

20,119.18

14,865.25

8,309.90

Profit per employee

2,341.99

951.55

389.11

Average wage per employee

286.51

257.08

227.86

Net worth

312.3

297.1

215.7

Number of employees

61

84

158

FOREIGN EXCHANGE RATES

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.73

UK Pound

1

Rs.89.02

Euro

1

Rs.72.48

INFORMATION DETAILS

Report
Prepared by :

SDA

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

--

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%)