MIRA INFORM REPORT

Report Date :

04.01.2012

IDENTIFICATION DETAILS

Name :	FLORENCE SHOE COMPANY PRIVATE LIMITED
Formerly Known As :	ANAIKAR SHOE COMPANY PRIVATE LIMITED
Registered Office :	Florence Centre, 69, E.V.K Sampath Road, Vepery, Chennai – 600007, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	28.08.1978
Com. Reg. No.:	18-007584
Capital Investment / Paid-up Capital :	Rs.5.000 millions
CIN No.: [Company Identification No.]	U19129TN1978PTC007584
TAN No.: [Tax Deduction & Collection Account No.]	CHEF03160D
PAN No.: [Permanent Account No.]	AAACF2415R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Shoe and Shoe Upper.
No. of Employees :	1000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 330000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The latest financial are not made available with the government department. As per previous year’s record. The company appears to be satisfactory. Trade relations are reported as fair. Business is active. Payments are reported to be unknown. The company can be considered for business dealings with some caution.

NOTES :

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

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
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

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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.

LOCATIONS

Registered Office :	Florence Centre, 69, E.V.K Sampath Road, Vepery, Chennai – 600007, Tamilnadu, India
Tel. No.:	91-44-52606062
Fax No.:	91-44-52606082
E-Mail :	hr@florence.co.in centre@florence.co.in anees@zermatshoes.com finance@florence.co.in
Website :	www.florence.co.in
Tannery :	2/31, K.M Nagar, IIIrd Street, Ambur – 635 802
Factory 1 :	156/103, Bangalore, Road, Mulipalayam, Vellore – 632 008
Factory 2 :	91/25-1, Bangalore, Road, Shenbakkam, Vellore – 632 008
Factory 3 :	157/102, Bangalore Road, Mullipalayam, Vellore – 632 008
Factory 4:	102, M.C. Road, Gangapuram, Ambur – 632 802
Factory 5 :	95/25-G, Bangalore Road, Mullipalayam, Vellore – 632 008
Factory 6 :	7/1B, Somalapuram, Ambur – 635 802
Factory 7 :	97/25F, Madras Bangalore Trunk Road, Mullipalayam, Shenbakkam Post, Vellore – 632008
Factory 8 :	7/1A, 8/1A, Peria Kommeswaram, Road, Somalapuram Village, Ambur 635802
Sole Factory :	2-1/31, K.M. Nagar, IIIrd Street, Ambur – 635 802

DIRECTORS

As on: 29.09.2012

Name :

Mr. Mohammed Sannan Pana Runa

Designation :

Whole-time Director

Address :

Old No. 16, New No. 5, Sterling Road 1^st Cross Street, Nungambakkam, Chennai – 600 034, Tamilnadu, India

Date of Birth/Age :

14.10.1988

Date of Appointment :

18.12.2006

PAN No.:

BIZPS3283H

Passport No.:

E5469650

DIN No.:

00928743

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	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
3	U19116TN2006PTC059322	ZERMATT SHOES PRIVATE LIMITED	Managing director	01/06/2012	01/06/2012	-	Active	NO

Name :

Mr. Anees Ahmed Thaday

Designation :

Whole Time Director

Address :

2/3, Nawab Habibullah Avenue, 2^nd Street Thousand Lights, Chenni – 600006, Tamilnadu, India

Date of Birth/Age :

20.03.1962

Date of Appointment :

01.06.2012

DIN No.:

00419866

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U19116TN2006PTC059322	ZERMATT SHOES PRIVATE LIMITED	Managing director	28/03/2006	28/03/2006	01/06/2012	Active	NO
2	U19129TN1978PTC007584	FLORENCE SHOE COMPANY PRIVATE LIMITED	Whole-time director	01/06/2012	01/06/2012	-	Active	NO

Name :

Panaruna Aqeel Ahmed

Designation :

Managing Director

Address :

Old No. 16, New No. 5, Sterling Road 1^st Cross Street, Nungambakkam, Chennai – 600 034, Tamilnadu, India

Date of Birth/Age :

07.05.1964

Date of Appointment :

31.03.1995

PAN No.:

ABYPA3803A

DIN No.:

00225381

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	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 :

Nattamkar Ishrath Khatoon

Designation :

Director

Address :

Old No. 16, New No. 5, Sterling Road 1^st Cross Street, Nungambakkam, Chennai – 600 034, Tamilnadu, India

Date of Birth/Age :

18.11.1968

Date of Appointment :

27.04.2010

DIN No.:

00225387

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	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

KEY EXECUTIVES

Name :	S. Saraskumar and Associates
Designation :	Company Secretaries
Address :	25/1, karnan Street, First Floor, Vathiyar Thottam, Kodambakkam, Chennai – 600 024, Tamilnadu, India
Tel No.:	91-44-24832294
E-mail:	sarak@vsnl.net

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
P.R. Aqueel Ahmed	5000
N. Ishrath Khatoon	12500
P. R. Mohammed Sannan	12500
P. R. Mohammed Raiyan	12500
P. R. Lina Mariam	7500
Total	50000

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Shoe and Shoe Upper

Products :

ITEM CODE (ITC CODE)	PRODUCT DESCRIPTION
41071100	Finished Leather
64035111	Full shoes
64061020	Shoe Uppers

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Actual Production
Full Shoes	Pairs	1653860

GENERAL INFORMATION

No. of Employees :	1000 (Approximately)
Bankers :	State Bank of India, Leather International Branch, MVJ Towers, 177/1 Poonamalee High Road, Kilpauk, Chennai – 600010, Tamilnadu, India

Banking Relations :	--
Auditors :
Name :	R. Venkataramani and Associates Chartered Accountants
Address :	No.: 13(Old No.7), Thiru VI Ka. 3^rd Street, Royapettah High Road, Mylapore, Chennai – 600004,Tamilnadu, India
PAN No.:	AACPV5424B
Related Parties:	· Zermatt Shoes Private Limited, India CIN No.: U19116TN2006PTC059322 · Lugano Shoes Private Limited, India CIN No.: U19200TN2010PTC075485

CAPITAL STRUCTURE

As on 30.09.2011

Authorized 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		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		5.000	5.000	5.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		79.005	65.654	53.852
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		84.005	70.654	58.852
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		6.673	7.010	6.937
TOTAL		90.678	77.664	65.789
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		296.942	274.337	286.304
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	136.100	85.121	153.346
	Sundry Debtors	129.094	142.191	117.249
	Cash & Bank Balances	24.287	30.650	15.855
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	123.324	86.123	102.383
Total Current Assets		412.805	344.085	388.833
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	607.369	532.868	584.151
	Other Current Liabilities	4.925	3.615	9.447
	Provisions	7.350	4.850	16.325
Total Current Liabilities		619.644	541.333	609.923
Net Current Assets		(206.839)	(197.248)	(221.090)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		90.678	77.664	65.789

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income
		Other Income
		TOTAL	NA	1727.343	1739.785
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	1710.782	1728.244
	PROFIT BEFORE TAX		15.514	16.561	11.541
	TAX		2.836	4.759	2.950
	PROFIT AFTER TAX		13.351	11.802	8.590
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		46.617	34.815	26.225
	BALANCE CARRIED TO THE B/S		59.968	46.617	34.815
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1805.494	1503.352	1510.851
	TOTAL EARNINGS		1805.494	1503.352	1510.851
	IMPORTS
		Leather	60.549	89.681	183.603
		Shoe materials and Chemicals	201.016	146.223	101.290
	TOTAL IMPORTS		261.565	235.904	284.893
	Earnings Per Share (Rs.)		0.25	236.04	171.81

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	0.68	0.49
Return on Total Assets (PBT/Total Assets}	(%)	2.18	2.68	1.71
Return on Investment (ROI) (PBT/Networth)		0.18	0.23	0.20
Debt Equity Ratio (Total Liability/Networth)		7.38	7.66	10.36
Current Ratio (Current Asset/Current Liability)		0.67	0.64	0.64

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 two years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	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	No
25]	Conduct of the banking account	----
26]	Buyer visit details	----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	Yes
34]	External Agency Rating, if available	No

FIXED ASSETS:

• Land
• Factory Building Block
• Sole factory Building
• Building Administration Block
• R O Plant Building
• Plant and Machinery
• Office Equipment
• Equipments
• Furniture and Fixtures
• Electrical Fittings
• Generator
• Motor Vehicles
• Cycle
• Computer
• Satellite Receiver System

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.54.42
UK Pound	1	Rs.88.29
Euro	1	Rs.71.49

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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		36

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.