MIRA INFORM REPORT

Report Date :

13.08.2012

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) :	31.03.2011
Date of Incorporation :	20.02.2006
Com. Reg. No.:	01- 049219
Capital Investment / Paid-up Capital :	Rs.520.825 Millions
CIN No.: [Company Identification No.]	U19202AP2006PTC049219
PAN No.: [Permanent Account No.]	AAFCA6140B
TIN No.:	05009445497
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 (27)

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

Maximum Credit Limit :	USD 3100000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears huge accumulated losses recorded by the company. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow. The company can be considered for business dealing 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

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.

INFORMATION DENIED BY

Name :	Mr. Morgan Chang
Designation :	Plant Head
Contact No.:	91-895876667
Date :	10.08.2012

LOCATIONS

Registered Office :	Apache SEZ, Mambattu Village, Tada Mandal Tada, Nellore – 524 401, Andhra Pradesh
Tel. No.:	91-86-23308888
Mobile No.:	91-895876667 (Mr. Morgan Chang)
Fax No.:	Not Available
E-Mail :	finance-apc@in.apachefootwear.com
Factory :	Plot No C-2/2/2 Upsidc Industrial Area, Main Road, Sefagul Tehsil, Vikas Nagar, Dehradun – 248197, India

DIRECTORS

As on 30.09.2011

Name :

Chien Chung Chen

Designation :

Additional Director

Address :

Manager’s Dormitory, Apache Sez, Mambattu Village, Tada Mandal, Nellore – 524401, Andhra Pradesh, India

Date of Birth/Age :

27.09.1963

Date of Appointment :

15.06.2011

DIN No.:

03272243

Name :

Tim Kau To

Designation :

Director

Address :

Flat G – 11/F Block 5, Lynwood Court, Kingswood 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/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	U19202AP2006PTC049219	APACHE FOOTWEAR INDIA PVT LTD	Director	20/02/2006	20/02/2006	-	Active	NO
2	U45200AP2006PTC049218	APACHE SEZ DEVELOPMENT INDIA PRIVATE LIMITED	Director	20/02/2006	20/02/2006	-	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/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	U19202AP2006PTC049219	APACHE FOOTWEAR INDIA PVT LTD	Director	20/02/2006	20/02/2006	-	Active	NO
2	U45200AP2006PTC049218	APACHE SEZ DEVELOPMENT INDIA PRIVATE LIMITED	Director	20/02/2006	20/02/2006	-	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/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	U19202AP2006PTC049219	APACHE FOOTWEAR INDIA PVT LTD	Director	20/02/2006	20/02/2006	-	Active	NO
2	U45200AP2006PTC049218	APACHE SEZ DEVELOPMENT INDIA PRIVATE LIMITED	Director	20/02/2006	20/02/2006	-	Active	NO

Name :

Chen Ching Lang

Designation :

Managing director

Address :

AD 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/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	U45200AP2006PTC049218	APACHE SEZ DEVELOPMENT INDIA PRIVATE LIMITED	Additional director	01/04/2008	01/04/2008	-	Active	NO
2	U19202AP2006PTC049219	APACHE FOOTWEAR INDIA PVT LTD	Managing director	01/06/2010	01/04/2008	-	Active	NO
3	U19200AP2010PTC066843	APEX GUDUR FOOTWEAR PRIVATE LIMITED	Director	29/01/2010	29/01/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Apache Investment Holding Private Limited, Singapore	32387799
Hong Kong Apache Footwear Limited, Hong Kong	1
Total	32387800

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

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	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Distributors of all kinds of Footwear’s.

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
Facilities :	--

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
PAN No.:	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

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
90000000	Equity Shares	Rs.10/- Each	Rs.900.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
32387800	Equity Shares	Rs.10/- Each	Rs.323.878Millions

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		323.878	220.589	196.249
2] Share Application money received pending for allotment		91.220	69.621	0.000
3] Reserves & Surplus		1282.078	868.922	771.562
4] (Accumulated Losses)		(902.274)	(674.543)	(708.174)
NETWORTH		794.902	484.589	259.637
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		794.902	484.589	259.637
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1142.342	1028.781	900.682
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	261.514	257.686	205.034
	Sundry Debtors	333.030	15.738	18.003
	Cash & Bank Balances	128.523	151.631	26.503
	Other Current Assets	1.694	1.067	0.000
	Loans, Advances and Deposits	24.167	17.578	14.589
Total Current Assets		748.928	443.700	264.129
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	994.932	735.159	901.916
	Other Current Liabilities	101.436	252.733	3.231
	Provisions	0.000	0.000	0.027
Total Current Liabilities		1096.368	987.892	905.174
Net Current Assets		(347.440)	(544.192)	(641.045)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		794.902	484.589	259.637

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2293.850	1649.430	1484.200
		Other Income	53.770	177.930	3.130
		TOTAL	2347.620	1827.360	1487.330
Less	EXPENSES
		Office Expenses	2472.430	1679.830	1754.840
		Administrative Expenses
		Advertising Expenses
		TOTAL	2472.430	1679.830	1754.840
	PROFIT BEFORE/ (LOSS) TAX, DEPRECIATION AND AMORTISATION		(124.810)	147.530	(267.510)
Less/ Add	DEPRECIATION/ AMORTISATION		102.920	113.900	90.830
	PROFIT/ (LOSS) BEFORE TAX		(227.730)	33.630	(358.340)
Less	TAX		0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX		(227.730)	33.630	(358.340)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(674.540)	(708.170)	(349.830)
	BALANCE CARRIED TO THE B/S		(902.270)	(674.540)	(708.170)
	EARNINGS IN FOREIGN CURRENCY
		Exports of goods (FOB Basis)	1960.950	1612.052	1478.341
	TOTAL EARNINGS		1960.950	1612.052	1478.341
	IMPORTS
		Raw Materials	1102.519	933.459	962.706
		Consumable, Packing Materials & Stores	346.196	143.937	76.522
		Capital Goods	123.860	87.341	89.300
	TOTAL IMPORTS		1572.575	1164.737	1128.528
	Earnings/ (Loss) Per Share (Rs.)		(8.87)	1.53	(18.25)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	9.70	1.84	(24.09)
Net Profit Margin (PBT/Sales)	(%)	(9.93)	2.04	(24.14)
Return on Total Assets (PBT/Total Assets}	(%)	(12.04)	2.28	(30.76)
Return on Investment (ROI) (PBT/Networth)		(0.29)	0.07	(1.38)
Debt Equity Ratio (Total Liability/Networth)		1.38	2.03	1.86
Current Ratio (Current Asset/Current Liability)		0.68	0.44	0.29

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	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three 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	Yes
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

BANKERS CHARGES REPORT AS PER REGISTRY

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	Rs. 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 Ltd on all all the Stock in trade, Book Debts and movable Plant & Machinery of the Company both present and future.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation by way of Exclusive First Charge in favour of HDFC Bank Ltd on all all the Stock in trade, Book Debts and movable Plant & Machinery of the Company as described in the Attachment.

PERFORMANCE:

The Company has achieved a total turnover of Rs. 2293.850 Millions as compared to the previous year turnover of Rs.1649.430 Millions registering an increase of 39.06% surpassing the previous year increase of 10.02%. The domestic unit at Dehradun has made a local sales turnover of Rs.309.410 Millions which helped the company to achieve the record sales turnover. Export sales of the SEZ unit was Rs.1960.950 Millions as compared to previous year’s export turnover of Rs.1612.050 Millions registering an impressive growth of 348.900 Millions.

Net result was a loss of Rs.227.730 Millions as compared to the previous year net profit of Rs. 33.630 Millions. The previous net profit was attributed to the training subsidy of Rs.68.530 Millions received from the Government of Andhra Pradesh for undertaking a training programme for the employees. The company is yet to wipe out the accumulated losses. The Directors are hopeful of achieving better results in the coming years.

FIXED ASSETS:

· Land

· Buildings

· Electrical Equipment and

· Appliances

· Vehicles

· Software

· Computers

· Electrical Fittings

· Pumps & Motors

· Furniture & Fittings

· Canteen Utensils

· Plant & Machinery

· Containers

· Office Equipment

· Other Fixed Assets

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.55.34
UK Pound	1	Rs.86.45
Euro	1	Rs.68.04

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

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.