MIRA INFORM REPORT

Report Date :

17.01.2012

IDENTIFICATION DETAILS

Name :	GANGA SPINNING AND WEAVING MILLS LIMITED (w.e.f. 03.08.1993)
Formerly Known as :	GANGA SPINNING AND WEAVING MILLS PRIVATE LIMITED
Registered Office :	249 – Industrial Area, Ludhiana – 141003, Punjab
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	18.06.1990
Com. Reg. No.:	16-010479
Capital Investment / Paid-up Capital :	Rs.14.312 Millions
CIN No.: [Company Identification No.]	U17117PB1990PLC010479
TAN No.: [Tax Deduction & Collection Account No.]	JLDG01098G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Spinning and Dealing in acrylic yarn, acrylic top, woolen yarn, cotton yarn, natural fibres yarn, manmade fibe yarn, etc.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (16)

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. The company do not have any significant business at present. However, trade relations are reported as fair. 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 :	249 – Industrial Area, Ludhiana – 141003, Punjab, India
Tel. No.:	91-161-2229535
Fax No.:	91-161-2600973
E-Mail :	ganga_spinning@yahoo.co.in

DIRECTORS

As on 30.09.2010

Name :

Mr. Ravinder Verma

Designation :

Director

Address :

60, Sant Nagar, Civil Lines, Ludhiana – 141003, Punjab, India

Date of Birth/Age :

09.11.1963

Date of Appointment :

18.06.1990

DIN No.:

00517907

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U17117PB1990PLC010479	Ganga Spinning and Weaving Mills Limited	Director	18/06/1990	18/06/1990	-	Active	NO
U67120PB1993PTC013171	Rahil Investments Private Limited	Director	29/03/1993	29/03/1993	-	Active	NO
U65910PB1996PTC017971	Mitul Finance Private Limited	Director	3/04/1996	3/04/1996	-	Active	NO
U17117PB1994PLC014190	Ganga Acrowools Limited	Managing director	26/07/2010	26/07/1999	-	Active	NO
U17290PB2011PTC035448	Sohana Acrowools Private Limited	Director	8/09/2011	8/09/2011	-	Active	NO

Name :

Mr. Satish Kumar Ohri

Designation :

Director

Address :

B-XX-1255/1, Krishna Nagar, Ludhiana – 141003, Punjab, India

Date of Birth/Age :

15.09.1952

Date of Appointment :

18.06.1990

DIN No.:

01052606

Name :

Mr. Surinder Mohan Soni

Designation :

Director

Address :

Amloh Road, Khanna – 141401, Punjab, India

Date of Birth/Age :

21.02.1959

Date of Appointment :

29.07.2010

DIN No.:

03225538

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U17117PB1990PLC010479	Ganga Spinning and Weaving Mills Limited	Director	30/09/2010	29/07/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Parkaswati Verma	40000
Ravindra Verma	160000
S.L. Verma	40500
Minar Acrowools Private Limited, India	145750
Minar Holdings Private Limited, India	314400
Rahil Investments Private Limited, India	341040
Schmematic Finance Limited, India	11400
Bipin Chandra Shah	1000
Vina Pravin	13000
Anil Jain	2000
Shilpa Patel	1000
Davinder Pal Singh	4900
Sigma Cement Limited, India	9800
Regency Fin Capital Private Limited, India	65900
Harjeet Rekhi	9800
Can Bank Financial S, India	14800
Neela Rajesh Shah	14800
Yamini Ashvin	13000
Vishav Mohini Bahri	24200
Minar Spinners Private Limited, India	25000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage
Bodies corporate	62.00
Directors or relatives of Directors	18.00
Other top fifty shareholders	20.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Spinning and Dealing in acrylic yarn, acrylic top, woolen yarn, cotton yarn, natural fibres yarn, manmade fibe yarn, etc.

Products :

PRODUCT DESCRIPTION	ITEM CODE NO.
Acrylic Yarn	5506

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of Patiala, Commercial Branch, Aarti Complex, Miller Ganj, Ludhiana – 141003, Punjab, India

Facilities :

Unsecured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Long Term Deposits from Directors and Relatives	5.360	5.234
Inter corporate deposits	1.000	0.126
Total	6.360	5.360

Banking Relations :	--
Auditors :
Name :	Davinder Rekhi and Company Chartered Accountants
Address :	Office No. 4, First Floor, Carnival Shopping Centre, Mall Road, Ludhiana – 141001, Punjab, India
PAN.:	AEVPR5680L
Enterprises over which key management personnel and their relatives have significant influence :	· Sohana Woolen Mills · Rahil Investments Private Limited · Minar Holdings Private Limited · Ganga Acrowools Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1750000	Equity Shares	Rs.10/- each	Rs.17.500 Millions

Issued, Subscribed Capital :

No. of Shares	Type	Value	Amount
1467370	Equity Shares	Rs.10/- each	Rs.14.674 Millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
1467370	Equity Shares	Rs.10/- each	Rs.14.674 Millions
72400	Less : Allotment money in arrears	Rs.5/- each	Rs.0.362 Millions
	Total		Rs.14.312 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		14.312	14.312	14.312
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		8.462	9.659	10.254
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		22.774	23.971	24.566
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		6.360	5.360	5.360
TOTAL BORROWING		6.360	5.360	5.360
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		29.134	29.331	29.926
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8.356	9.075	9.764
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		37.551	23.841	19.341
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	15.628	17.274	19.624
	Cash & Bank Balances	0.128	0.298	0.816
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2.403	2.444	2.457
Total Current Assets		18.159	20.016	22.897
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	8.866	3.189	3.335
	Other Current Liabilities	26.066	20.412	18.741
	Provisions	0.000	0.000	0.000
Total Current Liabilities		34.932	23.601	22.076
Net Current Assets		(16.773)	(3.585)	0.821
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		29.134	29.331	29.926

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1.931	0.317	8.713
		Other Income	1.145	0.378	0.350
		TOTAL (A)	3.076	0.695	9.063
Less	EXPENSES
		Cost of Goods Sold	1.865	0.312	8.252
		Personnel Expenses	0.185	0.190	0.188
		Administrative Expenses	0.109	0.092	0.106
		TOTAL (B)	2.159	0.594	8.546
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		0.917	0.101	0.517
Less	FINANCIAL EXPENSES (D)		1.297	0.003	0.002
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(0.380)	0.098	0.515
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.701	0.688	0.712
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(1.081)	(0.590)	(0.197)
Less	TAX (H)		0.000	0.001	0.002
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(1.081)	(0.591)	(0.199)
	Earnings Per Share (Rs.)		(0.74)	(0.40)	(0.14)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	35.14	85.03	2.19
Net Profit Margin (PBT/Sales)	(%)	(55.98)	(186.11)	(2.26)
Return on Total Assets (PBT/Total Assets}	(%)	(4.07)	(2.03)	(0.60)
Return on Investment (ROI) (PBT/Networth)		(0.05)	(0.02)	(0.01)
Debt Equity Ratio (Total Liability/Networth)		1.81	1.21	1.12
Current Ratio (Current Asset/Current Liability)		0.52	0.85	1.04

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE

The turnover of the company has increased from Rs.0.695 Millions to Rs.3.076 Millions in 2009-10.

Net loss has increased to Rs.1.080 Millions.

FORM 8

Corporate identity number of the company	U17117PB1990PLC010479
Name of the company	GANGA SPINNING AND WEAVING MILLS LIMITED
Address of the registered office or of the principal place of business in India of the company	249 – Industrial Area, Ludhiana – 141003, Punjab, India Email Id : ganga_spinning@yahoo.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90175272
Type of charge	Immovable property Corporate Guarantee
Particular of charge holder	State Bank of Patiala, Commercial Branch, Aarti Complex, Miller Ganj, Ludhiana – 141003, Punjab, India Email Id : SBOP50463@GMAIL.COM
Nature of instrument creating charge	Deed of guarantee for overall limits (CF-4)
Date of instrument Creating the charge	28.03.2011
Amount secured by the charge	Rs.1124.500 Millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Industrial Land Measuring 35755.50 sq. yards located at Village Kot Sekhon in the name of Ganga Spinning and Weaving Mills Limited
Date of instrument modifying the charge	18.03.2011
Particulars of the present modification	State Bank of Patiala has sanctioned the term loan of Rs.147.500 Millions Now the total present term loan are as such: State Bank of India: Rs.303.300 Millions, Bank of Baroda: Rs.35.200 Millions and State Bank of Patiala: Rs.322.000 Millions (Total of Term Loan of Rs.660.500 Millions) Total WC Limits (FB and NFB): Rs.464.000 Millions so the total exposure is Rs.1124.500 Millions

FIXED ASSETS

· Weighing Scale

· Scooter

· Office Equipment

· Furniture and Fixtures

· Computer

· Mobile

· Machinery

· Office Building

· Factory Building

· Generator

· Electric Fittings

· Fire Extinguisher

· Cycle

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.51.65
UK Pound	1	Rs.79.09
Euro	1	Rs.65.32

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	2
--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		16

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.