MIRA INFORM REPORT

Report Date :

19.04.2012

IDENTIFICATION DETAILS

Name :	G M SHAWLS PRIVATE LIMITED
Formerly Known As :	Islamia College Road, Hawal, Srinagar – 1900002, Jammu and Kashmir – 190002
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.04.2010
Com. Reg. No.:	07-003140
Capital Investment / Paid-up Capital :	Rs.15.000 Millions
CIN No.: [Company Identification No.]	U18101JK2010PTC003140
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter, Importer and Supplier of Shawls, Home Furnishing and Handcrafted Items
No. of Employees :	200 (Approximately)

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 65000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a successor of G M Shawls a partnership concern started in 1972. It is a company having moderate track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small business dealings at usual trade terms and conditions, with slight caution, initially.

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

INFORMATION PARTED BY

Name :	Mr. Sheikh Feroze Ahmad
Designation :	Managing Director
Contact No.:	91-9810537864
Date :	12.04.2012

LOCATIONS

Registered Office :	Islamia College Road, Hawal, Srinagar – 1900002, Jammu and Kashmir – 190002, India
Tel. No.:	91-194-2423636
Mobile No.:	91-9810537864 / 9419403636 [Mr. Sheikh Feroze]
Fax No.:	91-194-2423107
E-Mail :	gmshawls@yahoo.co.in ferozesheikh@yahoo.com bazazvijay@gmail.com
Website :	http://www.gmshawls.com
Area :	60000 sq. ft.
Location :	Owned
Corporate Office :	K-28, 3C’s Road, Lajpat Nagar – II, New Delhi – 110024, India
Tel. No.:	91-11-29831236 / 41725245 / 65656190 / 24535679
Fax No.:	91-11-29831235
Area :	800 sq. yards
Location :	Owned

DIRECTORS

As on 27.09.2011

Name :

Mr. Sheikh Gulam Mohammed

Designation :

Director

Address :

Hawal, Islamia College Road, Srinagar – 190002, Jammu and Kashmir, India

Date of Birth/Age :

26.04.1930

Date of Appointment :

01.04.2010

DIN No.:

02908742

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	U18101JK2010PTC003140	G.M.SHAWLS PRIVATE LIMITED	Whole-time director	01-04-10	01-04-10	Active	NO
2	U18101DL2005PTC133566	MIRZA FABRIC PRIVATE LIMITED	Director	03-01-12	03-01-12	Active	NO

Name :

Mr. Sheikh Feroz Ahmad

Designation :

Managing Director

Address :

1-2, Lajpat Nagar – III, New Delhi – 110024, India

Date of Birth/Age :

30.09.1961

Date of Appointment :

01.04.2010

DIN No.:

00329423

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	U18101DL2005PTC133566	MIRZA FABRIC PRIVATE LIMITED	Director	03-03-05	03-03-05	Active	NO
2	U18101JK2010PTC003140	G.M.SHAWLS PRIVATE LIMITED	Managing director	01-04-10	01-04-10	Active	NO

Name :

Mr. Sheikh Zaffar Ahmed

Designation :

Director

Address :

Hawal, Islamia College Road, Srinagar – 190002, Jammu and Kashmir, India

Date of Birth/Age :

31.03.1951

Date of Appointment :

01.04.2010

DIN No.:

02908773

Name :

Mr. Sheikh Zahoor Ahmed

Designation :

Director

Address :

Hawal, Islamia College Road, Srinagar – 190002, Jammu and Kashmir, India

Date of Birth/Age :

20.04.1954

Date of Appointment :

01.04.2010

DIN No.:

02908788

Name :

Mr. Sheikh Mohammed Syed

Designation :

Director

Address :

Hawal, Islamia College Road, Srinagar – 190002, Jammu and Kashmir, India

Date of Birth/Age :

30.03.1957

Date of Appointment :

01.04.2010

DIN No.:

02908804

Name :

Mr. Zubair Ishaq Khan

Designation :

Director

Address :

Hawal, Islamia College Road, Srinagar – 190002, Jammu and Kashmir, India

Date of Birth/Age :

22.07.1981

Date of Appointment :

01.04.2010

DIN No.:

02908819

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2011

Names of Shareholders	No. of Shares
Sheikh Gulam Mohammed	300000
Sheikh Feroze	300000
Sheikh Zaffar Ahmed	255000
Sheikh Zaboor Ahmed	255000
Sheikh Mohammed Syed	240000
Zubair Ishaq Khan	150000
Total	1500000

Equity Share Break up (Percentage of Total Equity)

As on 27.09.2011

Category	Percentage
Directors or relatives of Directors
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter, Importer and Supplier of Shawls, Home Furnishing and Handcrafted Items
Exports :
Products :	Shawls
Countries :	Middle East Countries
Imports :
Products :	Raw material
Countries :	European Countries
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	L/C, Cash and Credit

GENERAL INFORMATION

Suppliers :

• Seal International London
• Kalabar Textile

Customers :

• Kamal Trader

No. of Employees :

200 (Approximately)

Bankers :

Jammu and Kashmir Bank, A-17, Ring Road, Lajpat Nagar – IV, Delhi - 110024, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)
Jammu and Kashmir Bank – CC -130	4.944
Jammu and Kashmir Bank – CC – 227	4.315
Jammu and Kashmir Bank – Vehicle Loan – 0636	0.171
Jammu and Kashmir Bank – Vehicle Loan – Inova	0.273
Total	9.703

Banking Relations :	--
Auditors :
Name :	Vijay Bazaz Chartered Accountant
Address :	1-Birbal Road, Jangpura Extension, New Delhi – 110014, India
PAN.:	AAOPB6496K

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs.15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs.15.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		15.000
2] Share Application Money		0.000
3] Reserves & Surplus		1.374
4] (Accumulated Losses)		0.000
NETWORTH		16.374
LOAN FUNDS
1] Secured Loans		9.703
2] Unsecured Loans		0.000
TOTAL BORROWING		9.703
DEFERRED TAX LIABILITIES		0.000
TOTAL		26.077
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.459
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	12.036
	Sundry Debtors	91.628
	Cash & Bank Balances	15.966
	Other Current Assets	0.000
	Loans & Advances	9.946
Total Current Assets		129.576
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	97.024
	Other Current Liabilities	10.084
	Provisions	0.850
Total Current Liabilities		107.958
Net Current Assets		21.618
MISCELLANEOUS EXPENSES		0.000
TOTAL		26.077

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011
	SALES
		Income	251.487
		Other Income	12.309
		TOTAL	263.796
Less	EXPENSES
		Direct Expenses	266.278
		Office and Administration	1.627
		Employees Salary etc.	2.807
		Closing Stock	(12.036)
		TOTAL	258.676
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		5.120
Less	FINANCIAL EXPENSES		1.999
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		3.121
Less/ Add	DEPRECIATION/ AMORTISATION		0.998
	PROFIT BEFORE TAX		2.123
Less	TAX		0.750
	PROFIT AFTER TAX		1.373
	BALANCE CARRIED TO THE B/S		1.373
	Earnings Per Share (Rs.)		0.92

Particulars	31.03.2012
Sales Turnover (Approximately)	285.000

The above information has been parted by Mr. Sheikh Feroze Ahmad – Managing Director

KEY RATIOS

PARTICULARS		31.03.2011
PAT / Total Income	(%)	0.52
Net Profit Margin (PBT/Sales)	(%)	0.84
Return on Total Assets (PBT/Total Assets}	(%)	1.58
Return on Investment (ROI) (PBT/Networth)		0.13
Debt Equity Ratio (Total Liability/Networth)		7.19
Current Ratio (Current Asset/Current Liability)		1.20

LOCAL AGENCY FURTHER INFORMATION

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	Yes
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	Yes
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last one years	Yes
12) Profitability for last one 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	No
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	Yes
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

BUSINESS OPERATION

During the year the company recorded a turnover of Rs.251.487 millions and profit of Rs.2.123 millions

TRADE REFERENCES

• Seal International
• Kalabar Textile
• Kamal Trader

FORM 8

Corporate identity number of the company	U18101JK2010PTC003140
Name of the company	G.M.SHAWLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Islamia College Road, Hawal, Srinagar – 1900002, Jammu and Kashmir – 190002, India Email: bazazvijay@gmail.com
This form is for	Creation of charge
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	Jammu and Kashmir Bank, A-17, Ring Road, Lajpat Nagar – IV, Delhi - 110024, India Email: lajpat@jkbmail.com
Nature of instrument creating charge	Loan agreement
Date of instrument Creating the charge	01.05.2010
Amount secured by the charge	Rs.40.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 13.25% Per Annum

FIXED ASSETS

• Building
• Furniture and Fixture
• Machinery
• Vehicles
• Air Conditioner
• Computer
• Mobile Instrument
• Office Equipment

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.51.50
UK Pound	1	Rs.81.49
Euro	1	Rs.67.54

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	YES
--AFFILIATION	YES/NO	NO
--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.