MIRA INFORM REPORT

Report Date :

23.03.2013

IDENTIFICATION DETAILS

Name :	G M FABRICS PRIVATE LIMITED (w.e.f. 10.12.2009)
Formerly Known As :	HARTEX SILK MILLS PRIVATE LIMITED
Registered Office :	Dhana Singh Compound, J. B. Nagar, Andheri-Kurla Road, Andheri (East), Mumbai – 400059, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	03.01.1985
Com. Reg. No.:	11-034978
Capital Investment / Paid-up Capital :	Rs. 1.658 Millions
CIN No.: [Company Identification No.]	U17116MH1985PTC034978
TAN No.: [Tax Deduction & Collection Account No.]	MUMH06864E
PAN No.: [Permanent Account No.]	AAACH2821F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Home Furnishing Products.
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 610000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The management of the company has not made 2010-11 and 2011-12 financials available with the government department. Mr. More from account department provided us the sales turnover figure which is not verified form the previous year financials available. The company seems to be progressing well. Trade relations are reported as fair. Business is active. Payments are Unknown. The company can be considered for business dealings with some cautions

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

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	CARE
Rating	Long Term Bank Facilities: BBB
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation. It carry moderate credit risk.
Date	February, 2013

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.

INFORMATION PARTED BY

Name :	Mr. Ravindra More
Designation :	Accountant
Contact No.:	91-22-42140400
Date :	22.03.2013

LOCATIONS

Registered Office :	Dhana Singh Compound, J. B. Nagar, Andheri-Kurla Road, Andheri (East), Mumbai – 400059, Maharashtra, India
Tel. No.:	91-22-42140400 / 66750155 / 28365341 / 42140421 (4 Lines)
Fax No.:	91-22-28365341/ 22087475
E-Mail :	sales@gmfabrics.com hrd@gmfabrics.com accounts@gmfabrics.com gmfab@vsnl.com hsingh@gmfab.com
Website :	http://www.gmfabrics.com
Location :	Owned
Factory 1 :	Plot No.F-2/3, MIDC Tarapur Industrial Area, Boisar, Thane, Maharashtra, India
Factory 2 :	Sarigam, Gujarat, India

DIRECTORS

As on: 29.09.2012

Name :	Mr. Harbanskaur Gurcharan Singh Chugha
Designation :	Additional Director
Address :	Flat No. 91, 9^th Floor, Kshitij Apartment, Plot No.99, Hill Road, Bandra (West), Mumbai – 400050, Maharashtra, India
Date of Birth/Age :	07.12.1937
Date of Appointment :	20.11.2009
DIN No.:	00780083
Name :	Mr. Gurcharan Singh Sardar
Designation :	Director
Address :	91, Kshitij Apartments, 99, Hill Road, Bandra (West), Mumbai - 400050, Maharashtra, India
Date of Birth/Age :	13.04.1936
Date of Appointment :	06.11.2006
DIN No.:	01808540

KEY EXECUTIVES

Name :	Mr. Ravindra More
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Harbans Kaur	1582
S. Gurcharan Singh	1612
S. Gurcharan Singh HUF	1602
S. Harjinder Singh HUF	1602
S. Gurvinder Singh	1647
Ramanjit Kaur	1647
S. Gurvinder Singh HUF	1602
Gurpreet Kaur	880
S Harjinder Singh	1180
G M Mills Private Limited	1610
G M Knittign Industries Private Limited, India	1610
Partners of PSK Industries	2
Partners of GSK Industries	2
Partners of Harnam Silk Factory	2
Total	16580

As on 23.02.2011

Names of Allottee	No. of Shares Allotted
G M Knittign Industries Private Limited, India	19880
Total	19880

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Bodies corporate	20.00
Directors or relatives of Directors	80.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Home Furnishing Products.
Exports :
Products :	Home Furnishing Products
Countries :	Europe Middle East Asian Country Saudi Arabia UK
Imports :
Products :	Raw Material
Countries :	Germany China Korea
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

300 (Approximately)

Bankers :

• Common Wealth Bank of Australia, Level 2, Hoechst House, Nariman Point, Mumbai – 400021, Maharashtra, India
• Citi Bank, Trent House, 2nd Floor, G Block, Plot No. C60, Bandra Kurla Complex, Bandra (East), Mumbai-400051, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loans	As on 31.03.2010	As on 31.03.2009
(Secured against hypothecation of stocks, debtors, other assets and personal guarantee of Directors)
Citi Bank N.A
Term Loan	0.000	30.833
Preshipment Credit	98.166	46.786
Cash Credit	0.000	23.882
Total	98.166	101.501

Banking Relations :	--
Auditors :
Name :	Shah and Bhosale Chartered Accountants
Address :	7/8, 1^st Floor, 102 A Madhavwadi, Naigaum Crossroad, Dadra Central, Mumbai – 400014, Maharashtra, India
Tel. No.:	91-22-54156791 / 24156792
Fax No.:	91-22-24124824
E-Mail :
PAN.:	ABOFS4846H

CAPITAL STRUCTURE

As on: 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
75000	Equity Shares	Rs.100/- each	Rs. 7.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
36460	Equity Shares	Rs.10/- each	Rs. 3.646 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
75000	Equity Shares	Rs.100/- each	Rs. 7.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
16580	Equity Shares	Rs.100/- each	Rs. 1.658 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		1.658	1.658	1.647
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		150.843	126.572	25.633
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		152.501	128.230	27.280
LOAN FUNDS
1] Secured Loans		98.166	101.501	87.466
2] Unsecured Loans		103.369	111.828	209.678
TOTAL BORROWING		201.535	213.329	297.144
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		354.036	341.559	324.424
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		567.248	474.408	314.457
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		3.450	3.450	3.450
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	93.185	39.428	26.636
	Sundry Debtors	58.643	59.527	44.355
	Cash & Bank Balances	1.880	80.702	1.171
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	90.349	53.444	35.818
Total Current Assets		244.057	233.101	107.980
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	363.796	304.266	74.328
	Other Current Liabilities	24.400	4.878	0.532
	Provisions	74.296	62.250	26.755
Total Current Liabilities		462.492	371.394	101.615
Net Current Assets		(218.435)	(138.293)	6.365
MISCELLANEOUS EXPENSES		1.607	1.806	0.152
Others		0.166	0.188	0.000
TOTAL		354.036	341.559	324.424

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	658.479	577.494	456.897
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses	NA	NA	NA
		Advertising Expenses
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX		36.315	80.890	4.292
Less	TAX		12.044	28.093	1.850
	PROFIT AFTER TAX		24.271	52.305	2.457
	Earnings Per Share (Rs.)		1463.87	NA	NA

Particulars	31.03.2012	31.03.2011
Sales Turnover (Approximately)	1630.000	1500.000

Expected Sales ( 2012-13 ) : Rs. 1800.000 Millions

The above information has been parted by Mr. Ravindra More

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
Net Profit Margin (PBT/Sales)	(%)	5.51	14.01	0.94
Return on Total Assets (PBT/Total Assets}	(%)	4.48	11.43	1.02
Return on Investment (ROI) (PBT/Networth)		0.24	0.63	0.16
Debt Equity Ratio (Total Liability/Networth)		4.35	4.56	14.62
Current Ratio (Current Asset/Current Liability)		0.52	0.63	1.06

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

PARTICULARS	31.03.2010 (Rs. in Millions)	31.03.2009 (Rs. in Millions)	31.03.2008 (Rs. in Millions)
SUNDRY CREDITORS
Sundry Creditors For Goods	31.787	3.194	37.348
Sundry Creditors For Fixed Assets	1.037	48.536	19.449
Sundry Creditors For Share Application Money	310.434	0.000	0.000
Sundry Creditors For Expenses	20.538	252.536	17.531
TOTAL	363.796	304.266	74.328

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	Yes

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17116MH1985PTC034978
Name of the company	G M FABRICS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Dhana Singh Compound, J. B. Nagar, Andheri-Kurla Road, Andheri (East), Mumbai – 400059, Maharashtra, India hrd@gmfabrics.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10261286
Type of charge	Book debts Movable property (not being pledge) Others
Particular of charge holder	Common Wealth Bank of Australia, Level 2, Hoechst House, Nariman Point, Mumbai – 400021, Maharashtra, India kiran.bhosale@commbank.co.in
Nature of instrument creating charge	Letter issued by Citibank N.A. for ceding pari passu charge in favour of Commonwealth Bank of Australia
Date of instrument Creating the charge	29.08.2012
Amount secured by the charge	Rs.200.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Credit facilities other than CC: At the rate as negotiated with and agreed by the bank and within the maximum celiling as prescribed by RBI. CC: @4% above bank base rate i.e. 14% p.a. Terms of Repayment On demand Margin Margin to be maintained for cash credit at 30% on net stock plus debtors upto 120 days and for pre-shipment limit at 10% Extent and Operation of the charge 1/ Charge over entire current assets to secure the revised working capital facilities of Rs.115.000 Millions shall rank on first pari passu basis with the charge created in favor of Citi Bank. 2/ Charge over present and future plant and machinery to secure the Buyer's credit facility of Rs.150.000 Millions shall rank on first pari passu basis with the charge created in favor of Citi Bank. 3/ Exclusive charge on assets procured through Buyer's credit of the Company. Others Security created in respect of the following credit facilities: - Pre-shipment credit: Rs.100.000 Millions Sub limit: Post shipment credit: (Rs.100.000 Millions) - Cash credit: Rs. 5.000 Millions - Pre-settlement exchange risk: Rs.10.000 Millions - Buyer's credit Rs.150.000 Millions Total of the above facilities shall not exceed Rs.200.00 Millions.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All tangible movable properties, goods, documents of title to goods, vehicles and assets of whatsoever nature of the Borrower (both present and future) All the present and future book-debts, outstanding, money receivables, claims, bills etc.
Date of instrument modifying the charge	10.08.2012
Particulars of the present modification	Citibank N.A. vide their ceding letter dated 29.08.12 agree and confirm that the charge created by the Company in favor of Citibank N.A. for the working capital facilities of Rs.250.000 Millions over current assets shall rank on first pari passu with the charge created in favor of Commonwealth Bank of Australia (CBA) for the revised working capital facilities granted to the extent of Rs.115.000 Millions. However, the overall charge in favour of CBA remains unchanged at Rs.200.000 Millions.

UNSECURED LOANS

(Rs in Millions)

Particular	As on 31.03.2010	As on 31.03.2009
From Shareholders
S Gurucharan Singh	4.407	7.505
S Gurivinder Singh	0.171	2.814
G M Fabrics (Prop. S Gurvinder Singh)	71.919	71.929
From Companies
Dalitex Silk Mills Private Limited	0.000	11.669
Hartex Exports Private Limited	26.872	15.000
One G M Fabrics Private Limited	0.000	3.011
Total	103.369	111.828

FIXED ASSETS:

· Land

· Building

· Factory Building

· Residential Building

· Plant and Machinery

· Electric Installation

· Fire Extinguisher

· Motor Car

· Motor Vehicles

· Trolly

· Computer

· Air-conditioner and Refrigerator

· Furniture and Fixtures

· Generator

· Mobile Pager

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. 54.34
UK Pound	1	Rs. 82.56
Euro	1	Rs. 70.10

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

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.