MIRA INFORM REPORT

Report Date :

12.09.2011

IDENTIFICATION DETAILS

Name :	APACHE FOOTWEAR INDIA PRIVATE LIMITED
Registered Office :	Apache SEZ, Mambattu Village, Tada Mandal Tada, Nellore – 524 401, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	20.02.2006
Com. Reg. No.:	01-049219
Capital Investment / Paid-up Capital :	Rs.220.589 Millions
CIN No.: [Company Identification No.]	U19202AP2006PTC049219
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Distributors of all kinds of Footwear’s.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 1938000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears a huge accumulated losses recorded by the company. Trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
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 :	Apache SEZ, Mambattu Village, Tada Mandal Tada, Nellore – 524 401, Andhra Pradesh, India
Tel. No.:	91-8623-308888/ 210677/ 270111
Fax No.:	Not Available
E-Mail :	finance-apc@in.apachefootwear.com

DIRECTORS

As on 17.09.2010

Name :

Tim Kau To

Designation :

Director

Address :

Flat G – 11/F Block 5, Lynwood Court, Lingswood Villas, Tin Shui Wai, Hong Kong

Date of Birth/Age :

24.07.1965

Date of Appointment :

20.02.2006

DIN No.:

00085845

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	U19202AP2006PTC049219	Apache Footwear India Private Limited	Director	20-02-06	20-02-06	Active	NO
2	U45200AP2006PTC049218	Apache SEZ Development India Private Limited	Director	20-02-06	20-02-06	Active	NO

Name :

Chao Sung Tsai

Designation :

Director

Address :

No 14-2 Lane 633, Wenhua Road Pate Li Touliu City, Yinlin Country, Taiwan

Date of Birth/Age :

15.10.1955

Date of Appointment :

20.02.2006

DIN No.:

00205993

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	U19202AP2006PTC049219	Apache Footwear India Private Limited	Director	20-02-06	20-02-06	Active	NO
2	U45200AP2006PTC049218	Apache SEZ Development India Private Limited	Director	20-02-06	20-02-06	Active	NO

Name :

Chin Yung Chen

Designation :

Director

Address :

No 2, Alley 2 Lane 403 Section 3, Zhoh Township, Taichung Country, Taiwan

Date of Birth/Age :

16.07.1963

Date of Appointment :

20.02.2006

DIN No.:

00152485

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	U19202AP2006PTC049219	Apache Footwear India Private Limited	Director	20-02-06	20-02-06	Active	NO
2	U45200AP2006PTC049218	Apache SEZ Development India Private Limited	Director	20-02-06	20-02-06	Active	NO

Name :

Chen Ching Lang

Designation :

Managing Director

Address :

No 191 Beiping Road Neighborhood 4, Gongcheng Li Douliou City, Yunlin Country, Taiwan

Date of Birth/Age :

05.03.1954

Date of Appointment :

01.04.2008

DIN No.:

02203610

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	U45200AP2006PTC049218	Apache SEZ Development India Private Limited	Additional director	01-04-08	01-04-08	Active	NO
2	U19202AP2006PTC049219	Apache Footwear India Private Limited	Managing director	01-06-10	01-04-08	Active	NO
3	U19200AP2010PTC066843	Apex Gudur Footwear Private Limited	Director	29-01-10	29-01-10	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 17.09.2010

Names of Shareholders	No. of Shares
Apache Investment Holding Pte. Limited, Singapore	22058899
Hong Kong Apache Footwear Limited, Hong Kong	1
Total	22058900

As on 03.01.2011

Names of Allottees	No. of Shares
Apache Investment Holding Pte. Limited, Singapore	8369500
Total	8369500

As on 17.09.2010

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Distributors of all kinds of Footwear’s.

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	2009-10 [pairs in lakhs]
Production of Leather Shoes
(i) Licensed Capacity	50.00
(ii) Installed Capacity	29.40
(iii) Actual production	34.33

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	HDFC Bank Limited, HDFC Bank, House Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

Banking Relations :	--
Auditors :
Name :	Kuriachan and Nova Chartered Accountants
Address :	Flat No.3, R – 42, Old No. R – 17, Lakshman Manere, 6^th Main Road, Anna Nagar, Chennai – 600 040, Tamilnadu, India
Tel. No.:	91-44-26261855/ 26201840
E-Mail :	kuriachannova@eth.net
Income-tax PAN of auditor or auditor's firm :	AAAFK3268J
Associates :	v Apache SEZ Development India Private Limited, India v Apache Trade Limited, Hong Kong v Apache Footwear Limited, Bahamas v Sabry Lee International Limited, Hong Kong v Sabry Lee Limited, Taiwan

CAPITAL STRUCTURE

After 17.09.2010

Authorised Capital : Rs.450.000 millions

Issued, Subscribed & Paid-up Capital : Rs.323.878 millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
45000000	Equity Shares	Rs.10/- each	Rs.450.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
22058900	Equity Shares	Rs.10/- each	Rs.220.589 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		220.589	196.249	0.500
2] Share Application money received pending for allotment		69.621	0.000	898.423
3] Reserves & Surplus		868.922	771.562	0.000
4] (Accumulated Losses)		(674.543)	(708.174)	(349.831)
NETWORTH		484.589	259.637	549.092
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		0.000	0.000	0.000
TOTAL		484.589	259.637	549.092
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1028.781	900.682	870.385
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	257.686	205.034	193.385
	Sundry Debtors	15.738	18.003	161.965
	Cash & Bank Balances	151.631	26.503	43.666
	Other Current Assets	0.000	0.000	0.000
	Loans, Advances and Deposits	18.645	14.589	10.028
Total Current Assets		443.700	264.129	409.044
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	735.159	901.916	729.174
	Other Current Liabilities	252.733	3.231	0.719
	Provisions	0.000	0.027	0.444
Total Current Liabilities		987.892	905.174	730.337
Net Current Assets		(544.192)	(641.045)	(321.293)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		484.589	259.637	549.092

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1649.430	1484.200	527.500
		Other Income	177.930	3.130	18.600
		TOTAL	1827.360	1487.330	546.100
Less	EXPENSES
		Office Expenses	1679.830	1754.840	733.100
		Administrative Expenses
		Advertising Expenses
		TOTAL	1679.830	1754.840	733.100
	PROFIT BEFORE/ (LOSS) TAX, DEPRECIATION AND AMORTISATION		147.530	(267.510)	(187.000)
Less/ Add	DEPRECIATION/ AMORTISATION		113.900	90.830	77.300
	PROFIT/ (LOSS) BEFORE TAX		33.630	(358.340)	(264.300)
Less	TAX		0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX		33.630	(358.340)	(264.300)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(708.170)	(349.830)	(85.500)
	BALANCE CARRIED TO THE B/S		(674.540)	(708.170)	(349.800)
	EARNINGS IN FOREIGN CURRENCY
		Exports of goods (FOB Basis)	1612.052	1478.341	527.438
	TOTAL EARNINGS		1612.052	1478.341	527.438
	IMPORTS
		Raw Materials	930.418	962.706	456.261
		Consumable, Packing Materials & Stores	142.386	76.522	86.881
		Capital Goods	66.235	89.300	200.000
	TOTAL IMPORTS		1139.039	1128.528	743.142
	Earnings/ (Loss) Per Share (Rs.)		1.53	(18.25)	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.84	(24.09)	(48.40)
Net Profit Margin (PBT/Sales)	(%)	2.04	(24.14)	(50.10)
Return on Total Assets (PBT/Total Assets}	(%)	2.28	(30.76)	(20.66)
Return on Investment (ROI) (PBT/Networth)		0.07	(1.38)	(0.48)
Debt Equity Ratio (Total Liability/Networth)		2.03	1.86	1.33
Current Ratio (Current Asset/Current Liability)		0.44	0.29	0.56

LOCAL AGENCY FURTHER INFORMATION

Note:

The Registered office address of the company has been sifted from Andhra Pradesh, India to the present address w.e.f. 01.03.2007.

PERFORMANCE DURING THE PERIOD:

The Company has achieved an export turnover of INR 1649.430 millions as compared to the previous year turnover of INR 1484.190 millions registering an increase of 10.02% in the export turnover. The net result was a net profit of INR 33.630 millions. The net profit was mainly on account of receipt of a sum of INR 68.530 millions from the Government of Andhra Pradesh towards subsidy for undertaking a training programme for the employees. The company is yet to wipe out the accumulated losses.

CHANGES IN CAPITAL STRUCTURE:

During the year under report, the company has allotted 2434000 equity shares of Rs.10/- each, at a premium of Rs.40/- per share, under private placement to the promoters.

FORM 8:

Corporate identity number of the company	U19202AP2006PTC049219
Name of the company	APACHE FOOTWEAR INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Apache SEZ, Mambattu Village, Tada Mandal Tada, Nellore – 524 401, Andhra Pradesh, India E-Mail: wendy-liu@in.apachefootwear.com
This form is for	Creation of charge
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	CIN No.: L65920MH1994PLC080618 HDFC Bank Limited, HDFC Bank, House Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India E-Mail: srinivasan.venkataraman@hdfcbank.com
Nature of instrument creating charge	Letter of Hypothecation of Stocks, Book Debts and Machinery dated 29th October, 2009.
Date of instrument Creating the charge	29.10.2009
Amount secured by the charge	80.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Any such rate as may be advised to the Company from time to time in respect of the credit facilities. Terms of Repayment: Repayable on Demand. Margin: As may be prescribed by the Bank from time to time for the credit facilities. Extent and Operation of the charge: Hypothecation by way of Exclusive First Charge in favour of HDFC Bank Limited on all the Stock in trade, Book Debts and movable Plant and Machinery of the Company both present and future.
Short particulars of the property charged	Hypothecation by way of Exclusive First Charge in favour of HDFC Bank Limited on all the Stock in trade, Book Debts and movable Plant and Machinery of the Company.

CONTINGENT LIABILITIES NOT PROVIDED FOR: (As on 31.03.2010)

a) Outstanding Letters of Credit and/ or Bank guarantees

(i) Letters of Credit: Nil

(ii) Bank Guarantees: Nil

(iii) Bills discounted with banks: Nil

(iv) Customs Bond: 50.000 millions

FIXED ASSETS:

v Land

v Leased Land Development and Compound Wall

v Buildings – Factory (Multipurpose Building)

v Building Admin

v Buildings - others

v Buildings - Ramapuram

v Electrical Equipment and Appliances

v Vehicles

v Softwares

v Computers

v Electrical Fittings

v Pumps and Motors

v Furniture and Fittings

v Canteen Utensils

v Plant and Machinery

v Containers

v Office Equipment

v Other Fixed Assets

Capital Work in Progress:

v Buildings- CWIP (Administrative Building)

v Buildings-CWIP (Dormetory)

v Electrical-CWIP

v Factory-CWIP

v Boilers -CWIP

v Road-CWIP

v Warehouse -3 CWIP

v Waste Storage Room

v Development Centre -CWIP

v Office Equipments-CWIP

v Leased line (Telephone connectivity)

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.46.38
UK Pound	1	Rs.74.01
Euro	1	Rs.64.48

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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.