MIRA INFORM REPORT

Report Date :

08.12.2012

IDENTIFICATION DETAILS

Name :	A B COTSPIN INDIA LIMITED (w.e.f. 24.12.2010)
Formerly Known As :	GANGA COTTEX LIMITED
Registered Office :	53 Homeland Enclaves, Bathinda - 151001, Punjab
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	23.06.1997
Com. Reg. No.:	16-20118
Capital Investment / Paid-up Capital :	Rs. 9.914 Millions
CIN No.: [Company Identification No.]	U17111PB1997PLC020118
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Cotton Yarn
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 100000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a established company having moderate track record. Profitability of the company remains low. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. 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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	B+ : CASH CREDIT
Rating Explanation	Having high risk of default regarding timely securing of financial obligation.
Date	November 2012

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.

LOCATIONS

Registered Office :	53 Homeland Enclaves, Bathinda - 151001, Punjab, India
Tel. No.:	91-1635-232670/2262069
Fax No.:	Not Available
E-Mail :	camaheshjindal@icai.org deepak.goniana@gmail.com

DIRECTORS

As on: 30.09.2011

Name :

Mr. Rahul Goyal

Designation :

Director

Date of Appointment :

15.12.2010

DIN No.:

02633747

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	U18104DL1998PTC097636	HM OVERSEAS PRIVATE LIMITED	Director	22-04-09	22-04-09	18-12-10	Active	NO
2	U17121JK2003PLC002277	APEX FIBRE INDIA LIMITED	Director	01-11-10	01-11-10	-	Active	NO
3	U17111PB1997PLC020118	A B COTSPIN INDIA LIMITED	Director	15-12-10	15-12-10	-	Active	NO

Name :

Mr. Piyush Kansal

Date of Birth :

28.09.1990

Designation :

Director

Date of Appointment :

27.12.2010

DIN No.:

03366313

Name :

Mr. Samita Goyal

Designation :

Director

Date of Appointment :

01.07.2011

DIN No.:

03415630

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	U17121JK2003PLC002277	APEX FIBRE INDIA LIMITED	Director	17-03-11	17-03-11	-	Active	NO
2	U17111PB1997PLC020118	A B COTSPIN INDIA LIMITED	Director	01-07-11	01-07-11	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2011

Names of Shareholders	No. of Shares
Manohar Lal Garg	21000
Deepak Garg	139700
Pooja Garg	10000
Ram Sarup	56000
Ranjit Singh	2000
Ramesh Kumar	8280
Surinder Kumar	7800
Hardev Singh	8000
Pal Singh	3000
Kirpal Singh	1500
Lakhwant Singh	5000
Ajaib Singh	3000
Anjana Rani	1920
Raj Kumar	960
Pritam Vanti	1440
Ram Sarup	800
Baldev Singh	4800
Rachna Rani	1200
Gurandita Singh	3000
Kuldeep Singh	1500
Ranjit Singh	1500
Darshan Singh	1500
Gurchet Singh	3000
Nirmal Singh	1500
Chamkaur Singh	2500
Sukhpal Singh	3000
Lohara Singh	3000
Iqbal Singh	1000
Baldev Singh	2500
Jalour Singh	1500
Gurmail Singh	1000
Darshan Singh	3500
Sarabjeet Singh	1000
Balwinder Singh	2000
Sarbjit Singh	1500
Gurpreet Singh	1500
Baldev Singh	2000
Gurmail Singh	1000
Deepak Goyal	150000
Hemant Jindal	150000
Rahul Goyal	100000
Piyush Kansal	50000
Ashok Kansal	30000
Total	795400

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2011

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Cotton Yarn

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of Patiala, Goniana, Rathinda, Punjab, India

· Punjab National Bank, Civil Lines Branch, Bathinda - 151001, Punjab, India

· Indusind Bank Limited

· HDFC Bank

· ICICI Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWINGS
PNB - Term Loan (Secured by way of first charge/mortgage on immovable properties of the company)	252.750	0.000
HDFC - Vehicle Loan (Secured by hypothecation of Vehicles)	1.724	0.000
SHORT TERM BORROWINGS
PNB CC Limit from Bank (Secured by hypothecation of Inventory, Book Debts etc.)	93.615	0.000
PNB CC Limit from Bank (Secured by hypothecation of Inventory, Book Debts etc.)	25.312	0.000
Indusind Bank Limited. - Pledge Limit (Secured by pledge of Inventory)	19.801	0.000
Total	393.202	0.000
Unsecured Loan	As on 31.03.2012	As on 31.03.2011
Unsecured	132.369	19.313
Total	132.369	19.313

Banking Relations :	--
Auditors :
Name :	Raj Narian and Company Chartered Accountants
Address :	Ganesha Basti, Bathinda – 151001, Punjab, India
PAN No.:	AAJFR8886J

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs. 30.000 Millions
400000	Preference Shares	Rs.10/- each	Rs. 4.000 Millions
	Total		Rs. 34.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
795400	Equity Shares	Rs.10/- each	Rs. 7.954 Millions
392000	Share Forfeited Account Equity Shares	Rs. 10/- each Rs. 5/- paid up	Rs. 1.960 Millions
	Total		Rs. 9.914 Millions

The Details of Shareholder holding more than 5 % Shares:-

Particular	Number of Shares	% of Holding
Sh. Deepak Garg	139700	17.56
Sh. Ram Sarup	56000	07.04
Sh. Deepak Goyal	150000	18.86
Sh. Hemant Jindal	150000	18.86
Sh. Rahul Goyal	100000	12.57
Sh. Piyush Kansal	50000	6.29

The Reconciliation of the numbers of shares outstanding is set out below:-

Equity Shares at the beginning of the year	795400
Add : New Share issued	0.000
Equity Share at the end of the year	795400

As on 29.09.2012

Authorised Capital : Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 9.914 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		9.914	9.914	11.937
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		36.856	36.658	11.758
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		46.770	46.572	23.695
LOAN FUNDS
1] Secured Loans		393.202	0.000	0.000
2] Unsecured Loans		132.369	19.313	10.701
TOTAL BORROWING		525.571	19.313	10.701
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		572.341	65.885	34.396
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		448.264	16.890	23.188
Capital work-in-progress		0.000	31.096	0.000
INVESTMENT		0.050	0.050	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
OTHER NON CURRENT ASSETS		3.426	3.199	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	161.689	0.029	0.000
	Sundry Debtors	23.229	0.000	0.094
	Cash & Bank Balances	37.181	2.565	5.843
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	20.807	12.292	6.677
Total Current Assets		242.906	14.886	12.614
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	40.877	0.205	1.547
	Other Current Liabilities	76.953	0.020	0.000
0	Provisions	4.475	0.011	0.000
Total Current Liabilities		122.305	0.236	1.547
Net Current Assets		120.601	14.650	11.067
MISCELLANEOUS EXPENSES		0.000	0.000	0.141
TOTAL		572.341	65.885	34.396

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	221.164	3.419
		Other Income	0.242	0.000
		TOTAL (A)	221.406	3.419	3.279
Less	EXPENSES
		Cost of Material Consumed	292.438	3.312	2.804
		Purchase of Stock in Trade	0.944	0.000	0.000
		Changes in Inventories of Finished Goods, Work in Progress and Stock in Trade	(125.591)	0.000	0.000
		Employee benefit expenses	11.066	0.007	0.000
		Other Expenses	20.087	0.409	0.206
		TOTAL (B)	198.944	3.728	3.010
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		22.462	(0.309)	0.269
Less	FINANCIAL EXPENSES (D)		10.313	0.006	0.015
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		12.149	(0.315)	0.254
Less/ Add	DEPRECIATION/ AMORTISATION (F)		11.951	0.408	0.465
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		0.198	(0.723)	(0.211)
Less	TAX (H)		0.000	0.000	0.000
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		0.198	(0.723)	(0.211)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3.355	4.078	4.289
	BALANCE CARRIED TO THE B/S		3.553	3.355	4.078
	Earnings Per Share (Rs.)		0.25	(0.44)	(0.30)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.09	21.14	6.43
Net Profit Margin (PBT/Sales)	(%)	0.09	(0.21)	NA
Return on Total Assets (PBT/Total Assets}	(%)	0.03	(0.02)	(0.59)
Return on Investment (ROI) (PBT/Networth)		0.01	(0.02)	0.01
Debt Equity Ratio (Total Liability/Networth)		13.85	0.42	0.52
Current Ratio (Current Asset/Current Liability)		1.98	63.07	8.15

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	No
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	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
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	Yes

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17111PB1997PLC020118
Name of the company	A B COTSPIN INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	53 Homeland Enclaves Bathinda – 151001, Punjab, India camaheshjindal@icai.org
This form is for	Creation of charge
Type of charge	· Immovable property · Book debts · Movable property (not being pledge)
Particular of charge holder	Punjab National Bank Civil Lines Branch, Bathinda – 151001, Punjab, India BO3467@PNB.CO.IN
Nature of instrument creating charge	Hypothecation of goods and book debts to secure cash credit facility.
Date of instrument Creating the charge	16.12.2011
Amount secured by the charge	Rs. 150.000 Millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of interest 4 % Pa Over & Above The BPLR With A Minimum Of 14.75 % Pa On Daily Balance Basis. Terms of repayment on demand Margin 30 % of stock and book debts Extent and operation of the charge 100% Others Credit limit includes - sub limit against book debts not to exceed Rs. 30.000 Millions and packing credit upto Rs.40.000 Millions within overall FBWC limit of Rs.150.000 Millions.
Short particulars of the property or assets charged (including complete address and location of the property)	Hypothecation of all type of stock in trade i.e. cotton, narma, cotton yarn etc. and books debts. Extension of charge for cash credit limit over the land building 17k 16m registered vide rtd no.927/dt.09.07.1997 and rtd no.961 already registered.

REVIEW OF OPERATIONS

Your directors feel pleasure to inform you that your company has earned a profit before tax Rs. 0.198 Millions compare to last year’s Loss of Rs. 0.723 and hope for better results in the coming period

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Computer

· Furniture and Fixtures

· Scooter

· Car

· Mobile

· AC

· Lab 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 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 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. 54.20
UK Pound	1	Rs. 87.00
Euro	1	Rs. 70.22

INFORMATION DETAILS

Report Prepared by :

UDS

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	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.