Liberty Shoes

Some Recent developmets got an eye :

1. Foot-Mart Retail India Ltd., (FMRIL) Company’s Joint Venture with Pantaloon, launched its first mega store at “10 Acres Mall” in Ahmedabad on May 05 2006. Ten (10) more stores are expected to be operational within this year.

2. Liberty Foot Fashion Middle East FZE, Dubai the Wholly Owned Subsidiary of the Company has been registered as Free Zone Company in JAFZA in May 2006 and business activities of this Company would be commenced shortly.

3. The Company has decided to increase its stake in its subsidiary Liberty Retail Revolutions Ltd. (LRRL) from existing 50.12% to 100%. In the interest of the minority shareholders of the Company the stake of existing promoter’s of LRRL shall be acquired at par.

4. The Company has consolidated its results based on the Accounting Standard on “Consolidation of Financial Statements (AS-21)” issued by the ICA In compliance with the Accounting Standards the financial statements of both the Companies have been consolidated on line-by- line basis by adding together the values of the line items of Profit & Loss Account after eliminating Intra Group transactions.

5. The Company’s turnover and profitability during the quarter under consideration has been adversely affected due to ongoing labour unrest at three manufacturing facilities in Haryana. The present productivity level is below 50% of the installed Capacity due to large number of workers not reporting on duty for more than one month. The production level in the current quarter may remain lower, however the Company is making arrangements to increase productivity at other plants outside the State of Haryana and also to speed up the implementation of new projects being set up in Himachal and Uttranchal.