MIRA INFORM REPORT

Report No. :	349338
Report Date :	18.11.2015

IDENTIFICATION DETAILS

Name :	M & B FOOTWEAR PRIVATE LIMITED (w.e.f. 01.12.2007)
Formerly known as :	M & B FOOTWEARS PRIVATE LIMITED
Registered Office :	B - 2/3, Mohan Co-Operative Industrial Estate, Mathura Road, Badarpur, New Delhi – 110044
Tel. No.:	91-120-2580173
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	09.06.1993
Com. Reg. No.:	55-053975
Capital Investment / Paid-up Capital :	Rs.118.692 Million
CIN No.: [Company Identification No.]	U74899DL1993PTC053975
IEC No.:	0593035534
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAACM6383R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of military and safety shoes.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 1063000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company incorporated in the year 1993 having satisfactory track. Subject is engaged in the business as manufacturer of Military and Safety shoes. As per indirect source we could also find that the company has an exclusive licence agreement with the owners of the Lee Cooper brand to manufacture and market their footwear in India. It also manufactures for provogue and has its own brands, such as I-D, Firangi and MB. Available financial indicates sound financial risk profile marked by healthy networth base along with comfortable liquidity position and fair profit margin of the company. Further, the rating also takes into consideration favorable gap between trade payables and trade receivables. Trade relations are reported as fair. Business is active. Payments terms are reported as usually correct and as per commitment. In view of long track record and sound financial base, 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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating : BBB
Rating Explanation	Moderate degree of safety and carry moderate credit risk.
Date	10.02.2015

Rating Agency Name	CRISIL
Rating	Short term rating : A3+
Rating Explanation	Moderate degree of safety and carry higher credit risk.
Date	10.02.2015

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 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. Yogesh Khulbey
Designation :	Vice President
Contact No.:	91-9818399901
Date :	14.11.2015

LOCATIONS

Registered Office :	B - 2/3, Mohan Co-Operative Industrial Estate, Mathura Road, Badarpur, New Delhi – 110044, India
Tel. No.:	Not Available
Mobile No.:	91-9818399901 (Mr. Yogesh Khulbey)
Fax No.:	Not Available
E-Mail :	corp@mbfootwear.com accounts@mbfootwear.com
Website :	http://www.mbfootwear.com
Location:	Owned
Locality:	Industrial
Factory :	C-33, Sector 58, Noida Phase III, Gautam Budh Nagar – 201301, Uttar Pradesh, India
Tel. No.:	91-120-2580173, 2581839
Fax No.:	91-120-2580913
Location:	Owned

DIRECTORS

AS ON 30.09.2014

Name :

Mr. Inder Dev Singh Musafir

Designation :

Director

Address :

A-16, New Friends Colony, New Delhi - 110065, India

Date of Birth/Age :

04.03.1969

Date of Appointment :

09.06.1993

DIN No.:

00860661

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	U74899DL1993PTC053975	M & B FOOTWEAR PRIVATE LIMITED	Director	09/06/1993	09/06/1993	-	Active	NO
2	U45200DL2007PTC159308	MUSAFIR ESTATES PRIVATE LIMITED	Director	15/02/2007	15/02/2007	-	Active	NO
3	U74120DL2008PTC173905	SAMTEC REALTY SERVICES PRIVATE LIMITED	Director	12/02/2008	12/02/2008	-	Active	NO
4	U45200DL2008PTC182196	CMS PROPERTIES PRIVATE LIMITED	Director	20/08/2008	20/08/2008	-	Strike off	NO
5	U45400DL2008PTC185046	IDAT Estates Private Limited	Director	19/11/2008	19/11/2008	21/05/2013	Active	NO
6	U91200MH2011NPL211926	ALL INDIA FOOTWEAR MANUFACTURERS AND RETAILERS ASSOCIATION	Director	06/01/2011	06/01/2011	-	Active	NO
7	AAE-9563	MOM INFRASTRUCTURES LLP	Designated Partner	20/10/2015	20/10/2015	-	Active	NO

Name :

Mr. Bhai Ajinder Singh

Designation :

Director

Address :

57-B, Friends Colony (East), New Delhi - 110065, India

Date of Birth/Age :

05.08.1967

Date of Appointment :

09.06.1993

DIN No.:

00893671

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	U74899DL1993PTC053975	M & B FOOTWEAR PRIVATE LIMITED	Director	09/06/1993	09/06/1993	-	Active	NO
2	U74899DL1995PTC070726	FIRST FINVEST PRIVATE LIMITED	Director	12/07/1995	12/07/1995	-	Active	NO
3	U74899DL1985PTC020308	MANGLAM ISPAT UDYOG PRIVATE LIMITED	Director	12/12/1996	12/12/1996	-	Active	NO
4	U51503DL2001PTC111843	BHAI PUMPCRETE PVT. LTD.	Director	25/02/2005	25/02/2005	-	Active	NO
5	U74994DL2005PTC141041	JAIPURIA DECOR PRIVATE LIMITED	Director	30/11/2007	30/11/2007	-	Active	NO
6	U74140DL2008PTC184986	KNOWLEDGECROP CONSULTING PRIVATE LIMITED	Director	25/11/2008	25/11/2008	-	Active	NO
7	U51101DL2007PTC158093	KHATU JI EXPORT PRIVATE LIMITED	Director	30/09/2011	31/07/2010	-	Active	NO
8	U15549DL2006PTC151837	PANKHURI FOODS PRIVATE LIMITED	Director	30/09/2011	27/01/2011	-	Active	NO

Name :

Mrs. Narinder Musafir

Designation :

Director

Address :

A-16, New Friends colony, New Delhi - 110065, India

Date of Birth/Age :

18.11.1942

Date of Appointment :

09.06.1993

DIN No.:

01177021

Name :

Yong Kiat See

Designation :

Director

Address :

136 A Hillview Avenue#01-02, Singapore, 669606, Singapore

Date of Birth/Age :

26.06.1960

Date of Appointment :

01.09.2008

DIN No.:

02307091

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	U74899DL1993PTC053975	M & B FOOTWEAR PRIVATE LIMITED	Director	01/09/2008	01/09/2008	-	Active	NO
2	U72300KA1993PTC034929	TESSOLVE SEMICONDUCTOR PRIVATE LIMITED	Nominee director	29/09/2008	01/09/2008	-	Active	NO
3	U29299MH1994PLC081578	DUKE CORPORATION LIMITED	Nominee director	01/09/2008	01/09/2008	26/06/2013	Under liquidation	NO

Name :

Mr. Bhai Manpreet Singh

Designation :

Director

Address :

57 - B, Friends Colony (East), New Delhi - 110065, India

Date of Birth/Age :

01.05.1964

Date of Appointment :

09.09.1993

DIN No.:

01283424

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	U74899DL1993PTC053975	M & B FOOTWEAR PRIVATE LIMITED	Director	09/06/1993	09/06/1993	-	Active	NO
2	U74899DL1985PTC020308	MANGLAM ISPAT UDYOG PRIVATE LIMITED	Director	10/04/1997	10/04/1997	-	Active	NO
3	U51503DL2001PTC111843	BHAI PUMPCRETE PVT. LTD.	Director	01/08/2001	01/08/2001	-	Active	NO
4	U74899DL1995PTC070726	FIRST FINVEST PRIVATE LIMITED	Director	28/05/2004	28/05/2004	-	Active	NO
5	U45201DL1986PLC024298	BHAI TOWER CRANES LIMITED	Director appointed in casual vacancy	28/05/2007	28/05/2007	-	Strike off	NO
6	U74994DL2005PTC141041	JAIPURIA DECOR PRIVATE LIMITED	Director	30/11/2007	30/11/2007	-	Active	NO
7	U74899DL1959PTC003055	BHAI SUNDER DAS AND SONS CO PVT LTD	Additional director	05/12/2007	05/12/2007	-	Active	NO
8	U51101DL2007PTC158093	KHATU JI EXPORT PRIVATE LIMITED	Director	30/09/2011	31/07/2010	-	Active	NO
9	U15549DL2006PTC151837	PANKHURI FOODS PRIVATE LIMITED	Director	30/09/2011	27/01/2011	-	Active	NO

KEY EXECUTIVES

Name :	Ms. Geeta Rawat
Designation :	Secretary
Address :	E-7/349/L, Sangam Vihar, New Delhi - 110062, India
Date of Appointment :	30.07.2015
PAN No.:	AUZPR6643K
Name :	Mr. Yogesh Khulbey
Designation :	Vice President

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholders	No. of Shares
Bhai Ajinder	2312475
Inder Dev Singh Musafir	2312475
Bhai Manpreet Singh	2312500
Narinder Musafir	2500000
Puneet Sabharwal	187500
Leena Musafir	187500
Pawan Sabharwal	187500
Bhai Ajinder Singh (HUF)	25
Inder Dev Singh Musafir (HUF)	25
India China Pre-IPO Equity (Mauritius) Limited, Mauritius	1869207
Total	11869207

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2014

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	15.75
Directors or relatives of Directors	84.25
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of military and safety shoes.
Products :	Military and safety shoes
Brand Names :	I-D FIRANGI MB
Agencies Held :	Not Available
Exports :
Products :	Finished Goods
Countries :	South Africa United Arab Emirates Mauritius Bulgaria
Imports :	Not Divulged
Terms :
Selling :	Cash and Credit (30 / 60 / 90 days)
Purchasing :	Cash and Credit (30 / 60 / 90 days)

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

End Users and OEMs

No. of Employees :

100 (Approximately)

Bankers :

Bank Name	HDFC Bank Limited
Branch	HDFC Bank House Senapati Bapat Marg, Lower Parel West, Mumbai - 400013, Maharashtra, India
Person Name (With Designation)	Not Available
Contact Number	91-22-24988434
Name of Account Holder	Not Divulged
Account Number	Not Available
Account Since (Date/Year of Account Opening)	Not Available
Average Balance Maintained (If Possible)	Not Available
Credit Facilities Enjoyed (If any)	Cash credit : Rs.200.000 Million
Account Operation	Not Available
Remarks (If any)	Number is continuously ringing due to bank holiday

• ICICI Bank Limited, Landmarkrace Cource Circle, Alkapuri, Vadodara - 390015, Gujarat, India

• ING Vysya Bank Limited, Narian Manzil Ground Floor Shop No. G1 To G5, Shop No.1001 to 1007 Barakhamba Road, New Delhi - 110001, India

• State Bank of India, Overseas Branch, Jawahar Vyapar Bhawan, 1, Tolstoy Marg, New Delhi - 110001, India

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Loans taken for vehicles (Vehicle loans are Secured by hypothecation of vehicles and are repayable in 36-60 monthly instalments and carry an interest rate of 10-12% p.a.)	5.583	2.596
Short-term borrowings
Working capital loans from banks	262.890	366.347
Total	268.473	368.943

Notes :

Short-term borrowings

The cash credit and buyer's credit from State Bank of India is secured by first pari passu charge on the entire current assets and fixed assets except vehicles of the Company, including receivables, both present and future.

The cash credit and buyer's credit from HDFC Bank Limited is secured by first pari passu charge by way of hypothecation on the entire current assets and fixed assets except vehicles of the Company, both present and future.

All the above loans are personally guaranteed by directors ( Shri Inder Dev Singh Musafir and Bhai Ajinder Singh).

Financial Institution :	3i Infotech Trusteeship Services Limited, 3rd to 6th floor, International Infotech Park, Tower No.5, Vashi Railway Station Complex, Vashi, Navi Mumbai - 400703, Maharashtra, India
Auditors :
Name :	K M G S and Associates Chartered Accountants
Address :	3H, Big Jo's Tower, Netaji Subhash Place, New Delhi-110034, India
PAN No.:	AAAFJ5611N
Memberships :	Not Available
Collaborators :	Not Available
Associates :	Inder Dev Singh Musafir (HUF) Bhai Ajidner Singh (HUF)

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
15,000,000	Equity Shares	Rs.10/- each	Rs.150.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11,869,207	Equity Shares	Rs.10/- each	Rs.118.692 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	118.692	118.692	118.692
(b) Reserves & Surplus	253.404	220.018	194.663
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	372.096	338.710	313.355
(3) Non-Current Liabilities
(a) long-term borrowings	66.083	91.096	88.444
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	51.250	61.640	71.852
(d) long-term provisions	7.386	5.809	3.685
Total Non-current Liabilities (3)	124.719	158.545	163.981
(4) Current Liabilities
(a) Short term borrowings	262.890	366.347	417.889
(b) Trade payables	248.359	191.896	160.779
(c) Other current liabilities	61.941	60.213	88.840
(d) Short-term provisions	10.143	13.385	6.241
Total Current Liabilities (4)	583.333	631.841	673.749
TOTAL	1080.148	1129.096	1151.085
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	246.020	306.649	289.110
(ii) Intangible Assets	14.116	17.831	21.546
(iii) Capital work-in-progress	0.000	0.000	17.509
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	45.275	56.057	63.083
(d) Long-term Loan and Advances	14.052	25.155	26.300
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	319.463	405.692	417.548
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	306.572	319.404	371.545
(c) Trade receivables	368.351	335.115	302.948
(d) Cash and cash equivalents	11.671	9.588	7.646
(e) Short-term loans and advances	74.091	59.297	51.398
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	760.685	723.404	733.537
TOTAL	1080.148	1129.096	1151.085

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Turnover	1795.037	1267.934	1182.711
	Other Income	NA	NA	NA
	TOTAL	NA	NA	NA
Less	EXPENSES	NA	NA	NA
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	72.880	58.147	54.857
Less/ Add	DEPRECIATION/ AMORTISATION	22.624	22.325	24.117
	PROFIT/ (LOSS) BEFORE TAX	50.256	35.822	30.740
Less	TAX	16.870	10.467	12.247
	PROFIT/ (LOSS) AFTER TAX	33.386	25.355	18.493
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	(15.429)	(40.784)	(59.277)
	Balance Carried to the B/S	17.957	(15.429)	(40.784)
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	8.974	10.429	56.704
	TOTAL EARNINGS	8.974	10.429	56.704
	IMPORTS
	Raw Materials	212.659	138.133	36.619
	TOTAL IMPORTS	212.659	138.133	36.619
	Earnings / (Loss) Per Share (Rs.)	2.81	2.14	NA

Particulars	31.03.2015
Sales Turnover (Approximately)	2000.000

The above information has been parted by Mr. Yogesh Khulbey (Vice President).

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current maturities of long-term debt	2.526	0.799	16.286
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	155.583	155.872	NA
Net cash flows from (used in) operating activities	142.484	155.881	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Turnover)	(%)	1.86	2.00	1.56
Return on Total Assets (PBT/Total Assets}	(%)	4.86	3.34	2.87
Return on Investment (ROI) (PBT/Networth)		0.14	0.11	0.10
Debt Equity Ratio (Total Debt /Networth)		0.89	1.35	1.67
Current Ratio (Current Asset/Current Liability)		1.30	1.14	1.09

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	118.692	118.692	118.692
Reserves & Surplus	194.663	220.018	253.404
Share Application money pending allotment	0.000	0.000	0.000
Net worth	313.355	338.710	372.096
long-term borrowings	88.444	91.096	66.083
Short term borrowings	417.889	366.347	262.890
Current Maturities of Long Term Debt	16.286	0.799	2.526
Total borrowings	522.619	458.242	331.499
Debt/Equity ratio	1.668	1.353	0.891

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Turnover	1182.711	1267.934	1795.037
		7.206	41.572

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Turnover	1182.711	1267.934	1795.037
Profit	18.493	25.355	33.386
	1.56%	2.00%	1.86%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	-----
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last four years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	---
33	Market information	---
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

UNSECURED LOAN

PARTICULARS	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Loans and advances from directors	60.500	88.500
Total	60.500	88.500

CONTINGENT LIABILITIES

PARTICULARS	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
(a) Claims against the Company not acknowledged as debt	5.493	5.493
(b) Other money for which company is contingently liable
(i)Demand raised by Sales Tax Authority being disputed by the Company	5.375	0.739
(ii) Electricity claim against the company not acknowledged as debt	0.000	0.146
Total	10.868	6.378

NOTE

The registered office has been shifted from C-7, Connaught Place, New Delhi – 110001, India to the present address w.e.f. 27.02.2015.

OPERATIONS

The macroeconomic scenario was difficult with a slowdown in the investment cycle, persistently high headline inflationary trends were continued to be felt at consumer price levels and a volatile currency and interest rates. The economic environment remained subdued for large part of year. Gross Domestic Product (GDP) growth continued to show a deceleration in growth rate at a lower than 5% for the financial year 2014. The overall impact of all these factors was felt on disposable incomes thus affecting consumer spending.

Despite these constraints and challenging environment, their high quality and hi-fashion products helped their clients and consumers to interact with each other, gain valuable insights and make informed decisions. Underpinning their business model is a set of powerful competitive advantages, which enable them to create value for their Company. Their strategy builds on and reinforces these advantages, the company was able to achieve its high volume growth.

During the financial year 2013-14, the company’s total operating revenues increased to Rs 1795.037 Million from Rs 1267.943 Million in the previous year, which reflects a growth about 42%. The profit before tax is Rs 50.256 Million as against Rs 35.822 Million in the previous year.

The Company has witnessed constant growth over the past few years, which endorses its strong understanding of the consumer needs and lifestyle. The Company has been relentlessly working on improving its product offerings through constant research and development. The footwear collection has vastly improved over the years and many contemporary and fashionable designs of footwear have been launched. The new designs have helped the Company to constantly increase its customer base while meeting the changing lifestyle needs of the loyal customers. During the year, the qualities of manufacturing products of the Company have also been improved and producing footwear with a more trendy look and comfort to meet the ever-changing market requirements. In order to meet its demand for footwear, the Company has also tied up with various manufacturers to produce shoes as per its own designs and quality standards which is an on-going process in the Company and the same shall continue in the future.

The Company’s growth is steadily built on its core strengths of Lee Cooper brand, manufacturing, design, distribution, sourcing and customer care deliverability.

The Company’s key core values are ‘to provide Quality Consumer Products at affordable prices’ and ‘Fairness in dealings with Every Stake Holder’.

The Directors are always of the view that Indian footwear industry has huge potential due to its intrinsic strengths and this industry would further grow because of change in consumption habits and consumer awareness. In its efforts to exploit the available potential, the Company has been working to improve its presence in the footwear market where it has always been considered as a leader and known for its fashion consciousness. The rising input cost has been the concern area for which the Company is taking effective steps to control and to suitably pass it on to the consumers. The Company has strong fundamentals, follows robust customer and innovation focused strategy, emphasises on operational excellence and constantly empowers and motivates its people to pursue higher goals. The expansion of reach, frequent fashionable launch to attract customers and selective outsourcing of footwear with quality compliance are the few steps the Company has implemented to improve the overall efficiency of the Company. The Directors are constantly making their efforts to improve the working of the Company with optimal utilization of available resources and have also intended to further consolidation and restructuring in all areas of operations to reinforce and strengthen its marketing segments, supply chain management, internal control, credit management and its working capital efficiencies. The sales turnover during the year is the highest ever achieved by the company.

The company’s multiple brands and multi-channel presence has helped to maximise its sales growth by catering to a larger consumer base. Besides brand diversity, the product is also present in various categories of footwear, including sports, casual, semi-formal, formal, party wear, and outdoor shoes, priced at different levels. The company’s Lee Cooper and i-D brands are mainly in the casual and semi-formal segment. The Provogue brand mainly caters to the formal and party wear segment. To further diversify its brand offerings, the company has entered in the kid and ladies segment under the Lee Cooper brands.

The company continues to be committed in becoming the Best Footwear Company in the Country through its multi-faceted presence with multiple brand portfolios.

The outlook for 2015 also appears the decisive factors such as high inflation, difficult liquidity, currency fluctuations, volatile economic conditions, depressed market sentiments and taxations & regulations are continuing to exert pressures on competition, cost, margin and working capital. The threat in the domestic market continues from the unorganized players and regional brands that compete with unviable low pricing strategies due to the evasion of taxes. Consumers are focusing increasingly on value for money, looking for simple, hard-wearing shoes that last. Designer shoes have borne the brunt of this shift in consumption brought on by the economic recession. Shoe manufacturers and retailers are since forced to compete on price and value.

The Central Government has given relief in excise duty on low price products up to the MRP of Rs 1,000/-. There is no change / any relief in the excise duty for the footwear for MRP exceeding Rs 1,000/- for the type of the Company’s products. Majority of the States has increased the Value Added Tax from 12.50%. Also additional taxes like Octroi, Entry Tax and Local Body Taxes has been imposed by few States. This will have a cascading effect and push up the end prices of the products.

The company will require an inflow of funds through a combination of debt and equity to fund the growing working capital needs and also to need the financial requirement for the expansions.

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10380723	09/04/2013 *	200,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI - 400013, MAHARASHTRA, INDIA	B76601038
2	10071102	27/11/2012 *	365,000,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, JAWAHAR VYAPAR BHAWAN, 1, TOLSTO  Y MARG, NEW DELHI - 110001, INDIA	B64240500

* Date of charge modification

FIXED ASSETS

Tangible assets

• Land
• Buildings
• Plant and equipment
• Furniture and fixtures
• Vehicles
• Office equipment
• Other equipments

Intangible assets

• Computer software

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 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.65.98
UK Pound	1	Rs.100.11
Euro	1	Rs.70.35

INFORMATION DETAILS

Information Gathered by :	PPT
Analysis Done by :	DIV
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.