MIRA INFORM REPORT

Report Date :

03.11.2013

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) :	31.03.2012
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 :

B (26)

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

Maximum Credit Limit :	USD 91000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Management has failed to file its latest financials of 2013 with government department. As per of 2012, profitability and reserves of the company appears to be low. However, trade relations are fair. Business is active. Payment terms are 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

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 :	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 29.09.2012

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 :

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	U17117PB1990PLC010479	GANGA SPINNING AND WEAVING MILLS LIMITED	Director	18/06/1990	18/06/1990	-	Active	NO
2	U67120PB1993PTC013171	RAHIL INVESTMENTS PRIVATE LIMITED	Director	29/03/1993	29/03/1993	-	Active	NO
3	U65910PB1996PTC017971	MITUL FINANCE PRIVATE LIMITED	Director	03/04/1996	03/04/1996	-	Active	NO
4	U17117PB1994PLC014190	GANGA ACROWOOLS LIMITED	Managing director	26/07/2010	26/07/1999	-	Active	NO
5	U17290PB2011PTC035448	SOHANA ACROWOOLS PRIVATE LIMITED	Director	08/09/2011	08/09/2011	-	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 :

30.09.2010

DIN No.:

03225538

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	U17117PB1990PLC010479	GANGA SPINNING AND WEAVING MILLS LIMITED	Director	30/09/2010	29/07/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

SHAREHOLDING DETAIL FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

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, Nylon Staple Fibre	5509

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	· Bank of Baroda, Mid-Corporate Branch G.T. Road Miller Ganj, Ludhiana - 141003, Punjab, India · State Bank of India, Industrial Finance Branch Golden Tower G.T. Road, Ludhiana - 141003, Punjab, India

Banking Relations :	-
Auditors :
Name :	Davinder Rekhi and Company Chartered Accountants
Address :	Ludhiana, Punjab, India
PAN N Income-tax PAN of auditor or auditor's firm :	AEVPR5680L
Enterprises over which key management personnel and their relatives have significant influence :	· Ganga Acrowools Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1467370	Equity Shares	Rs.10/- each	Rs. 14.674 Millions
	Less: Unpaid calls on 72400 Equity Shares	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	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	14.312	14.312
(b) Reserves & Surplus	8.437	8.100
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	22.749	22.412
(3) Non-Current Liabilities
(a) long-term borrowings	3.527	5.360
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	3.527	5.360
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	91.508	34.140
(c) Other current liabilities	1.275	0.138
(d) Short-term provisions	0.000	0.000
Total Current Liabilities (4)	92.783	34.278
TOTAL	119.059	62.050
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	6.962	7.659
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	38.551	37.551
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.170
Total Non-Current Assets	45.513	45.380
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	0.000	0.000
(c) Trade receivables	5.177	13.757
(d) Cash and cash equivalents	0.622	0.062
(e) Short-term loans and advances	67.747	2.851
(f) Other current assets	0.000	0.000
Total Current Assets	73.546	16.670
TOTAL	119.059	62.050

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		14.312
2] Share Application Money		0.000
3] Reserves & Surplus		8.462
4] (Accumulated Losses)		0.000
NETWORTH		22.774
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		6.360
TOTAL BORROWING		6.360
DEFERRED TAX LIABILITIES		0.000
TOTAL		29.134
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8.356
Capital work-in-progress		0.000
INVESTMENT		37.551
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000
	Sundry Debtors	15.628
	Cash & Bank Balances	0.128
	Other Current Assets	0.000
	Loans & Advances	2.403
Total Current Assets		18.159
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	8.866
	Other Current Liabilities	26.066
	Provisions	0.000
Total Current Liabilities		34.932
Net Current Assets		(16.773)
MISCELLANEOUS EXPENSES		0.000
TOTAL		29.134

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	175.220	30.030	1.931
		Other Income	0.906	0.941	1.145
		TOTAL (A)	176.126	30.971	3.076
Less	EXPENSES
		Cost of Material Consumed	173.245	28.913
		Employee Benefits Expenses	0.489	0.119
		Other Expenses	1.001	0.117
		TOTAL (B)	174.735	29.149	2.159
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.391	1.822	0.917
Less	FINANCIAL EXPENSES (D)		0.369	1.441	1.297
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.023	0.381	(0.380)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.696	0.697	0.701
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		0.326	(0.316)	(1.081)
Less	TAX (H)		0.065	0.000	0.000
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		0.261	(0.316)	(1.081)
	Earnings / (Loss) Per Share (Rs.)		0.18	(0.21)	(0.74)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.15	(1.02)	(35.14)
Net Profit Margin (PBT/Sales)	(%)	0.19	(1.05)	(55.98)
Return on Total Assets (PBT/Total Assets}	(%)	0.40	(1.29)	(4.08)
Return on Investment (ROI) (PBT/Networth)		0.01	(0.01)	(0.05)
Debt Equity Ratio (Total Debt /Networth)		0.16	0.24	0.05
Current Ratio (Current Asset/Current Liability)		0.79	0.49	0.52

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	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	No
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

PERFORMANCE

The turnover of the company has increased manifold from Rs.30.970 Millions to Rs. 176.127 Millions in 2011-12.

The company has earned the net profit of Rs.0.260 Millions (after tax) and the director are hopeful to maintain the existing performance in future also.

CURRENT YEAR’S OUTLOOK

The company is expected to sustain its turnover though trading activities.

UNSECURED LOAN

PARTICULARS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Short-term borrowings
Loan and Advance from related parties
From Shareholders	1.477	3.310
From Others	2.050	2.050
Total	3.527	5.360

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10012257	22/06/2006	263,900,000.00	STATE BANK OF INDIA	SPECIALISED COMMERCIAL BRANCH, PAHWA COMPLEX, MI LLER GANJ, LUDHIANA, PUNJAB - 141003, INDIA	A03058534
2	90173024	25/02/2002	6,600,000.00	BANK OF BARODA	INDL. AREA B, LUDHIANA, PUNJAB, INDIA	-
3	90311703	25/02/2002	6,600,000.00	BNAK OF BARODA	INDUASTRIAL AREA - B, LUDHIANA, PUNJAB, INDIA	-
4	80012418	25/02/2002	7,436,000.00	BANK OF BARODA	INDUSTRIAL AREA B, LUDHIANA, PUNJAB - 141001, INDIA	-
5	90175272	19/03/2013 *	1,635,500,000.00	BANK OF BARODA	MID-CORPORATE BRANCH G.T. ROAD MILLER GANJ, LUDHIANA, PUNJAB - 141003, INDIA	B73623274
6	90311696	18/02/2002	176,500,000.00	STATE BANK OF INDIA	MILLER GANJ BRANCH, OVERSEAS BRANCH, LUDHIANA, PUNJAB, INDIA	-
7	90174961	24/08/1998	7,500,000.00	PUNJAB STATE INDL. DEV. CORP.	UDYAG BHAWAN;SEC.17, CHANDIGARH, CHANDIGARH, INDIA	-
8	90172872	17/02/1999 *	104,300,000.00	STATE BANK OF PATIALA	OVERSEAS BRANCH; MILLER GANJ, LUDHIANA, PUNJAB, INDIA	-
9	90172877	22/05/1998	104,300,000.00	STATE BANK OF INDIA	SPECIALISED COMMERCIAL BRANCH;MILLER GANJ, LUDHIANA, PUNJAB, INDIA	-
10	90172878	11/01/1999 *	104,300,000.00	STATE BANK OF PATIALA	OVERSEAS BRANCH; MILLER GANJ, LUDHIANA, PUNJAB, INDIA	-

* Date of charge modification

FIXED ASSETS

· Weighing Scale

· Scooter

· Office Equipment

· Furniture and Fixtures

· Computer

· Mobile

· Machinery

· Office Building

· Factory Building

· Generator

· Electric Fittings

· Fire Extinguisher

· Cycle

· Land

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.62.23
UK Pound	1	Rs.102.14
Euro	1	Rs.84.64

INFORMATION DETAILS

Report Prepared by :

KVT

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	2
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		26

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.