MIRA INFORM REPORT

Report Date :

07.12.2011

IDENTIFICATION DETAILS

Name :	WALKER FOOTWEAR INDUSTRIES LIMITED
Registered Office :	Sr.No. Part 342/1, Ambadvet, Pirangut, Taluka Mulshi, Pune – 412108, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.06.2006
Com. Reg. No.:	25-128657
Capital Investment/ Paid-up Capital:	Rs. 5.000 Millions
CIN No.: [Company Identification No.]	U19202PN2006PLC128657
TAN No.: [Tax Deduction & Collection Account No.]	PNEW01380B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Safety, Casual and Formal Footwear
No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (11)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appear huge accumulated losses recorded by the company. Profitability of the company is under pressure. However, business is active. Payments are reported to be slow. The company can be considered for business dealings on a secured 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office / Factory :	Sr.No. Part 342/1, Ambadvet, Pirangut, Taluka Mulshi, Pune – 412108, Maharashtra, India
Tel. No.:	91-20-25440995
E-Mail :	walkerfootwear@vsnl.net
Website :	http://www.walkerfootwear.in
Communication Address :	C/o MTE Society’s M.P.T.A., Dhondumma Sathe Homeopathic Medical College, 3^rd Floor, Off Karve Road, Erandwane, Pune – 411004, Maharashtra, India
Tel. No.:	91-20-25440995 / 25464126

DIRECTORS

AS ON 30.09.2011

Name :

Mr. Madhukar Anant Pathak

Designation :

Director

Address :

Building No. 14, Flat No. 6, Anand Nagar, Paud Road, Kothrud, Pune – 411029, Maharashtra, India

Date of Birth/Age :

06.07.1957

Date of Appointment :

27.06.2006

DIN No. :

00249039

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U34999PN1998PLC012981	M. P. ENTERPRISES & ASSOCIATES LIMITED	Director	28-10-1998	28-10-1998	Active	NO
2	U72200PN2004PLC018899	INFOTEK NETALIA LIMITED	Director	11-02-2004	11-02-2004	Active	NO
3	U19202PN2006PLC128657	WALKER FOOTWEAR INDUSTRIES LIMITED	Director	27-06-2006	27-06-2006	Active	NO
4	U72900PN2006PTC022200	SHIVAM INFO-N-CALL PRIVATE LIMITED	Director	22-03-2007	22-03-2007	Active	NO
5	U74140PN2007PLC130333	M.P. Training Academy Limited	Director	15-06-2007	15-06-2007	Active	NO
6	U24232PN2008PTC131431	HEALTHPRO PHARMACEUTICALS PRIVATE LIMITED	Director	14-02-2008	14-02-2008	Active	YES
7	U72200PN2004PTC019649	AVANTI SOFTWARE SOLUTIONS PRIVATE LIMITED	Nominee director	07-12-2009	07-12-2009	Active	NO
8	U45202MH1997PTC110270	BEHERE PATHAK INFRA VENTURES PRIVATE LIMITED	Director	30-09-2011	14-01-2011	Active	NO

Name :

Mrs. Shilpa Madhukar Pathak

Designation :

Director

Address :

Building No. 14, Flat No. 6, Anand Nagar, Paud Road, Kothrud, Pune – 411029, Maharashtra, India

Date of Appointment :

27.06.2006

DIN No. :

00249070

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U34999PN1998PLC012981	M. P. ENTERPRISES & ASSOCIATES LIMITED	Director	28-10-1998	28-10-1998	Active	NO
2	U19202PN2006PLC128657	WALKER FOOTWEAR INDUSTRIES LIMITED	Director	27-06-2006	27-06-2006	Active	NO

Name :

Mr. Abhishek Madhukar Pathak

Designation :

Director

Address :

Building No. 14, Flat No. 6, Anand Nagar, Paud Road, Kothrud, Pune – 411029, Maharashtra, India

Date of Appointment :

27.06.2006

DIN No. :

00249091

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U34999PN1998PLC012981	M. P. ENTERPRISES & ASSOCIATES LIMITED	Whole-time director	30-09-2006	01-06-2006	Active	NO
2	U19202PN2006PLC128657	WALKER FOOTWEAR INDUSTRIES LIMITED	Director	27-06-2006	27-06-2006	Active	NO
3	U17114PN2007PTC129880	BNA Textiles Private Limited	Director	27-03-2007	27-03-2007	Active	NO
4	U74140PN2007PLC130333	M.P. Training Academy Limited	Director	20-10-2008	01-08-2008	Active	NO

Name :

Ms. Yogita Sadanand Deshpande

Designation :

Director

Address :

Building No. 14, Flat No. 8, Anand Nagar, Paud Road, Kothrud, Pune – 411029, Maharashtra, India

Date of Appointment :

27.06.2006

DIN No. :

00249160

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U19202PN2006PLC128657	WALKER FOOTWEAR INDUSTRIES LIMITED	Director	27-06-2006	27-06-2006	Active	NO
2	U74140PN2007PLC130333	M.P. Training Academy Limited	Director	15-06-2007	15-06-2007	Active	NO

Name :

Mr. Sadanand Jagannath Deshpande

Designation :

Managing Director

Address :

14/8, Anand Nagar, Kothrud, Pune- 411029, Maharashtra, India

Date of Appointment :

27.06.2006

DIN No. :

00628555

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U34999PN1998PLC012981	M. P. ENTERPRISES & ASSOCIATES LIMITED	Director	01-07-2005	01-07-2005	Active	NO
2	U19202PN2006PLC128657	WALKER FOOTWEAR INDUSTRIES LIMITED	Director	27-06-2006	27-06-2006	Active	NO
3	U74140PN2007PLC130333	M.P. Training Academy Limited	Director	15-06-2007	15-06-2007	Active	NO
4	U72200PN2004PTC019649	AVANTI SOFTWARE SOLUTIONS PRIVATE LIMITED	Nominee director	07-12-2009	07-12-2009	Active	NO

Name :

Mr. Mahesh Jagannath Deshpande

Designation :

Director

Address :

14/8, Anand Nagar, Kothrud, Pune- 411029, Maharashtra, India

Date of Appointment :

27.06.2006

DIN No. :

01838410

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Shares
Mr. Sadanand Jagannath Deshpande	10001
Mrs. Shilpa Madhukar Pathak	10000
Mr. Mahesh Jagannath Deshpande	10000
Ms. Yogita Sadanand Deshpande	10000
Mr. Abhishek Madhukar Pathak	10000
Mr. Madhukar Anant Pathak	10000
TOTAL	60001

(AS ON 30.09.2011)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Safety, Casual and Formal Footwear

GENERAL INFORMATION

Customers :

· Goa Shipyard Limited, Goa

· Cochin Shipyard Limited, Cochin

· Harshit Export, Mumbai.

· DGP Hinoday Industries Limited, Bhosari, Pune.(Mahindra and Mahindra Group)

· Mahle Filter Systems (India) Private Limited, Pune.

· Intervet India Private Limited, Pune.

· Ciba. India Private Limited, Mumbai.

· Gammon India Limited, Dist: Raigad.

· Siemens Limited, Thane.

· Vishay Components India Private Limited, Pune.

· Conor Metalloys Private Limited, Pune.

· Schenker Logistics, Pune.

· Zala Industrial Supply, Thane (W).

· Insignia Incorporate, Mumbai.

· R.G. Enterprises, Delhi

· Safe – Tech Marketing, Bangalore.

· Bobst India Private Limited, Pune.

· Kirloskar Oil Engines Limited, Khadki, Pune.

· Kirloskar Ferrous Indus. Limited, Solapur.

· Bajaj Electricals Limited, Ranjangaon, Pune.

· General Motors India, Talegaon, Pune.

· JCB Manufacturing Limited, Talegaon, Pune.

· Honey well, Pune.

· Global Airport and Ground services Private Limited, Bangalore.

· Pepsico India Holding Private Limited, Kerala.

· IFB Industries Limited, Bangalore.

· Crompton Greaves Limited, Nasik.

· BILT Graphic Paper products Limited, Bhigwan.

· Billcare Limited, Pune.

· ThyssenKrupp Industries Limited. Pimpri, Pune.

· Nicrom India Limited. Shirwal Satara Road.

· Wheels India limited. midc Ranjangaon.

· Virgo Engineers Limited. Hinjewadi Pune.

· Sharp Engineering Nanekarwadi Chakan Pune.

· Gharda Chemical Industries Limited. Parshuram Lote, Khed, Ratnagiri.

· Kalyani Forge Limited. Sanswadi Nagar Road, Pune.

· Cooper Standard Lonikand Nagar Road Pune.

No. of Employees :

Not Available

Bankers :

The Vishweshshwar Sahakari Bank Limited, Pune

471/472, Market Yard, Gultekdi, Through Its Paud Road Branch, Pune – 411037, Maharashtra, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
From Banks and Financial Institutions	23.496	10.977
Total	23.496	10.977
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Debts from Associates Companies	0.000	5.621
Total	0.000	5.621

Banking Relations :	--
Auditors :
Name :	Ramesh Rahalkar and Company Chartered Accountant
Address :	Unit No. 2, Sampada Apartment, House No. 695, Narayan Peth Lane, Lokhande Talim, Pune – 411030, Maharashtra, India
Tel. No.:	91-20-24452400 / 24453687 / 24487628
E-Mail :	rameshrahalkar@gmail.com
PAN No. :	AAZPR8011R

CAPITAL STRUCTURE

AS ON 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Share	Rs.10/- each	Rs. 5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
60001	Equity Share	Rs.10/- each	Rs. 0.600 Million

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		0.600	0.600	0.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(5.586)	(4.152)	(3.611)
NETWORTH		(4.986)	(3.552)	(3.011)
LOAN FUNDS
1] Secured Loans		23.496	10.977	8.794
2] Unsecured Loans		0.000	5.621	0.000
TOTAL BORROWING		23.496	16.598	8.794
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		18.510	13.046	5.783
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		25.352	11.659	4.817
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.557	0.557	0.968
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	6.244	1.485	3.068
	Cash & Bank Balances	1.409	0.242	0.063
	Other Current Assets	5.277	4.861	3.763
	Loans & Advances	0.000	0.000	0.000
Total Current Assets		12.930	6.588	6.894
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	14.626	3.450	5.022
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	5.703	2.308	1.874
Total Current Liabilities		20.329	5.758	6.896
Net Current Assets		(7.399)	0.830	(0.002)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		18.510	13.046	5.783

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operational Income	33.908	16.020	7.549
		Other Income	0.193	0.103	0.034
		TOTAL (A)	34.101	16.123	7.583
Less	EXPENSES
		Consumption of Material	21.943	10.063	4.643
		Direct Expenses	5.795	3.617	2.225
		Administrative and Selling Expenses	4.262	2.409	1.901
			32	16.089	8.769
		TOTAL (B)	31.192	14.998	7.989
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2.909	1.125	(0.406)
Less	FINANCIAL EXPENSES (D)		2.610	1.123	1.398
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.299	0.002	(1.804)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.341	0.702	0.816
	PROFIT BEFORE TAX (E-F) (G)		(1.042)	(0.700)	(2.620)
Less	TAX (H)		0.391	(0.158)	0.000
	PROFIT AFTER TAX (G-H) (I)		(1.433)	(0.542)	(2.620)
	Earnings Per Share (Rs.)		(23.88)	--	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(4.20)	(3.36)	(34.55)
Net Profit Margin (PBT/Sales)	(%)	(3.07)	(4.37)	(34.71)
Return on Total Assets (PBT/Total Assets}	(%)	(2.72)	(3.84)	(22.37)
Return on Investment (ROI) (PBT/Networth)		(0.21)	(0.20)	(0.87)
Debt Equity Ratio (Total Liability/Networth)		(8.79)	(6.29)	(5.21)
Current Ratio (Current Asset/Current Liability)		0.64	1.14	1.00

LOCAL AGENCY FURTHER INFORMATION

Note : Registered office address of the company has been shifted from Chirajeev Apartment, 2^nd Floor, Paud Road, Kothrud, Pune – 411029, Maharashtra to the present address w.e.f 18.08.2011

Bankers Charges Report as per Registry

Corporate identity number of the company	U19202PN2006PLC128657
Name of the company	WALKER FOOTWEAR INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	Chiranjeev Apartment, 2nd Floor, Paud Road, Kothrud, Pune – 411029, Maharashtra, India walkerfootwear@vsnl.net
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10021967
Type of charge	· Immovable Property · Book Debts · Movable Property (Not Being Pledge) · Floating Charge · Stock & Machinery
Particular of charge holder	The Vishweshwar Sahakari Bank Limited. Pune 471/472, Market Yard, Gultekdi, Through Its Paud Road Branch, Pune -411037, Maharashtra, India vsbl@vsnl.net
Nature of instrument creating charge	1. Deed of hypothecation of tangible goods. 2. Book debts agreement.
Date of instrument Creating the charge	21.08.2010
Amount secured by the charge	Rs. 4.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	(a) Rate of interest 13.5% with monthly rest. (b) Terms of repayment To be repaid on demand or before fifteen months. (c) Margin 25% Book Debts. 25% Stock. (d) Extent and operation of the charge Type of credit facility: cash credit.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Primary security: present and future book debts and stock as per information given to the bank and records maintained at the register office of the company. Collateral security: immoveable property
(a) Whether any of the property or interest therein under reference is not registered in the name of the company (b) If yes, in whose name it is registered	Yes A Partnership Firm Chaitanya Enterprises Jagannath Deshpande Manisha Deshpande
Particulars of the present modification	By this modification present and future book debts, plant & machinery and paid-up stock are provided as primary security to the cash credit limit of Rs. 4.500 Millions. Immoveable property continues to be the collateral security for the same cash credit facility.

FIXED ASSETS :

· Air Conditioner

· Computer and Software

· Plant and Machinery

· Electrical Installations

· Dies and Moulds

· Building

· Furniture and Fixtures

· Generator

· Land

· Mobile Handset

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.51.39
UK Pound	1	Rs.80.20
Euro	1	Rs.68.92

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	1
--RESERVES	1~10	-
--CREDIT LINES	1~10	-
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		11

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.