MIRA INFORM REPORT

Report Date :

01.02.2013

IDENTIFICATION DETAILS

Name :	GABA OVERSEAS PRIVATE LIMITED
Registered Office :	Sanjay Chowk T Road, Panipat – 132103, Haryana
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	21.09.1990
Com. Reg. No.:	05-031060
Capital Investment / Paid-up Capital :	Rs.182.382 Millions
CIN No.: [Company Identification No.]	U51909HR1990PTC031060
PAN No.: [Permanent Account No.]	AAACG6676P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Fabrics, Bed Cover, Yarn and Floor Covering
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (38)

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

Maximum Credit Limit :	USD 1800000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The liquidity of the company is attached because of its working-capital-intensive operations. However, trade relations are reported as fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings 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	BB+ (Long Term Rating)
Rating Explanation	Moderate risk of default.
Date	30.04.2012

Rating Agency Name	CRISIL
Rating	A4+ (Short Term Rating)
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	30.04.2012

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 :	Sanjay Chowk T Road, Panipat – 132103, Haryana, India
Tel. No.:	91-180-2666601
Fax No.:	91-180-2666605
E-Mail :	vinodgroverassociates@yahoo.com
Factory :	Village Karhans Machhauli, G.T.Road, Panipat, Killa No.40/3, 4/1, 4/2, Situated At Village Machhrauli, Distt. India

DIRECTORS

As on: 29.09.2012

Name :	Mr. Kalu Ram Gaba
Designation :	Director
Address :	675 L, Model Town, Panipat – 132103, Haryana, India
Date of Birth :	14.03.1929
Date of Appointment :	01.01.1992
DIN No.:	00265347
Name :	Mr. Rajesh Gaba
Designation :	Director
Address :	675 L, Model Town, Panipat – 132103, Haryana, India
Date of Birth :	14.03.1965
Date of Appointment :	01.01.1992
DIN No.:	00318087

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Anil Gaba	1277760
Dinesh Gaba	1458250
Rajesh Gaba	3135810
Kalu Ram Gaba	965130
Anita Gaba	1358990
Neena Gaba	1364870
Dhruv Gaba	533520
Vrinda Gaba	334030
Divya Gaba	144690
Upasana Gaba	529500
Liberty Fabrics Private Limited, Panipat, India	484750
Gaba Hometex Private Limited, New Delhi, India	356000
Gaba Fabrics Private Limited, New Delhi, India	465000
Kalu Ram Gaba and Sons, Panipat, India	359300
Hiti Gaba	121400
Nikita Gaba	120700
Harshit Gaba	301150
Ritika Textiles Private Limited, New Delhi, India	2195000
Yash Pal	12000
Attar Shinup Limited, Panipat, India	393000
Gee Textile Private Limited, Panipat, India	340000
Tejas Gaba	469900
Keshav Gaba	390000
Haryana Dyers and Finishers Private Limited, New Delhi, India	300000
Sindhwani Metal Engg Private Limited, New Delhi, India	10000
Gaba Global Private Limited, New Delhi, India	240000
Liberty Spinners (P) Limited, Panipat, India	200000
Mastercrafts India (P) Limited, Panipat , India	215000
Ritika Finance and Investment, India	160000
Fardidkot EXIM Private Limited, India	1000
Roopam Sales Private Limited, India	1500
Total	18238250

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Bodies corporate	29.64
Directors or relatives of Directors	70.29
Other	0.07
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Fabrics, Bed Cover, Yarn and Floor Covering

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Punjab National Bank, Jatal Road, Panipat – 132103, Haryana, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long Term Borrowing
Term loan from banks	321.067	403.714
Short Term Borrowing
Working capital loans from bank	184.543	136.740
Total	505.610	540.454

Banking Relations :	--
Auditors :
Name :	Vinod Grover and Associates Chartered Accountant
Address :	26-27, Shakuntala Complex, 1^st Floor, Palika Bazar, G.T. Road, Panipat, Haryana, India
PAN.:	AATPG4554G

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
26000000	Equity Shares	Rs.10/- each	Rs.260.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
18238250	Equity Shares	Rs.10/- each	Rs.182.382 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		182.382	182.357	171.957
2] Share Application Money		58.590	0.090	0.090
3] Reserves & Surplus		232.475	209.013	191.606
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		473.447	391.460	363.653
LOAN FUNDS
1] Secured Loans		505.610	540.454	572.306
2] Unsecured Loans		0.332	0.329	1.821
TOTAL BORROWING		505.942	540.783	574.127
DEFERRED TAX LIABILITIES		58.725	58.159	56.047
TOTAL		1038.114	990.402	993.827
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		613.741	649.953	616.058
Capital work-in-progress		22.500	0.000	83.223
INVESTMENT		19.948	19.948	28.048
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	221.721	138.812	91.230
	Sundry Debtors	149.911	145.282	144.436
	Cash & Bank Balances	38.442	31.771	57.785
	Other Current Assets	20.824	23.969	0.000
	Loans & Advances	35.431	25.163	40.119
Total Current Assets		466.329	364.997	333.570
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	72.143	28.334	28.334
	Other Current Liabilities	6.870	10.126	34.026
	Provisions	5.391	6.036	4.799
Total Current Liabilities		84.404	44.496	67.159
Net Current Assets		381.925	320.501	266.411
MISCELLANEOUS EXPENSES		0.000	0.000	0.087
TOTAL		1038.114	990.402	993.827

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Sales	707.243	770.842	677.976
		Other Receipts	6.443	8.454	0.000
		TOTAL	713.686	779.296	677.976
Less	EXPENSES
		Office Expenses	626.485	684.858	650.396
		Administrative Expenses
		Advertising Expenses
		TOTAL	626.485	684.858	650.396
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		87.201	94.438	NA
Less/ Add	DEPRECIATION/ AMORTISATION		60.257	64.350	NA
	PROFIT BEFORE TAX		26.943	30.088	27.580
Less	TAX		5.956	12.681	11.286
	PROFIT AFTER TAX		20.987	17.407	16.294
	Earnings Per Share (Rs.)		1.15	0.095	0.95

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.94	2.23	2.40
Net Profit Margin (PBT/Sales)	(%)	3.81	3.90	4.06
Return on Total Assets (PBT/Total Assets}	(%)	2.49	2.96	2.90
Return on Investment (ROI) (PBT/Networth)		0.06	0.08	0.07
Debt Equity Ratio (Total Debt/Networth)		1.07	1.38	1.58
Current Ratio (Current Asset/Current Liability)		5.52	8.20	4.96

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	No
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	No

UNSECURED LOAN:

Particulars	As on 31.03.2012	As on 31.03.2011
Long Term Borrowing
Loans and advances from related party	0.332	0.329
Total	0.332	0.329

FIXED ASSETS:

• Land and Building
• Plant and Machinery
• Factory 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.53.29
UK Pound	1	Rs.84.22
Euro	1	Rs.72.23

INFORMATION DETAILS

Report Prepared by :

RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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		38

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.