MIRA INFORM REPORT

Report Date :

21.08.2014

IDENTIFICATION DETAILS

Name :	GIC INSUFLEX CONDUCTORS PRIVATE LIMITED
Registered Office :	Unit No.G2, N.J. Industrial Estate, Survey No.265/A, Chinchpada, Gokhivare Village, Vasai Road (East), Thane – 401208, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	20.02.2012
Com. Reg. No.:	11-227205
Capital Investment / Paid-up Capital :	Rs.1.000 Million
CIN No.: [Company Identification No.]	U74120MH2012PTC227205
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Copper Wire and Electrical Products.
No. of Employees :	35 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 77000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject was established during the year 1972 as a partnership concern with the name “Gupta Industrial Corporation” and later during 2012 it got converted into Private Limited. It is an established company having moderate track record. The company has shown a growth in its turnover and profit during 2013 however, the borrowing recorded are huge. Trade relations are reported as fair. Business is active. Payment terms are reported to be 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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Yagnesh Trivedi
Designation :	Chief Finance Officer and Operation Head
Contact No.:	91-250-6452477
Date :	20.08.2014

LOCATIONS

Registered Office/ Factory :	Unit No.G2, N.J. Industrial Estate, Survey No.265/A, Chinchpada, Gokhivare Village, Vasai Road (East), Thane – 401 208, Maharashtra, India
Tel. No.:	91-250-2453546 / 2453547 / 2454887 / 6452477
Mobile No.:	91-9820386798 (Mr. Pravin)
Fax No.:	91-250-2456886
E-Mail :	bhvinca@gmail.com ampt@gicinsuflex.com amit@gicinsuflex.com accounts@gicinsuflex.com
Website :	www.gicinsuflex.com

DIRECTORS

As on 30.09.2013

Name :

Mr. Amit Bhupendra Shah

Designation :

Director

Address :

A-101, Kamla Nagar, M.G. Road, Kandivali (West), Mumbai – 400 067, Maharashtra, India

Date of Birth/Age :

22.02.1969

Qualification :

Diploma In Electrical Engineering

Date of Appointment :

20.02.2012

DIN No.:

03405971

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	U74120MH2012PTC227205	GIC INSUFLEX CONDUCTORS PRIVATE LIMITED	Director	20/02/2012	20/02/2012	-	Active	NO
2	U74120MH2012PTC237502	ABS CORP PRIVATE LIMITED	Director	30/09/2013	28/12/2012	-	Active	NO

Name :

Mr. Bhupendra Rasiklal Shah

Designation :

Director

Address :

A-101, Kamla Nagar, M.G. Road, Kandivali (West), Mumbai – 400 067, Maharashtra, India

Date of Birth/Age :

23.10.1944

Qualification :

B.Com

Date of Appointment :

20.02.2012

DIN No.:

03406007

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	U74120MH2012PTC227205	GIC INSUFLEX CONDUCTORS PRIVATE LIMITED	Director	20/02/2012	20/02/2012	-	Active	NO
2	U74120MH2012PTC237502	ABS CORP PRIVATE LIMITED	Additional director	28/12/2012	28/12/2012	21/01/2013	Active	NO

KEY EXECUTIVES

Name :	Mr. Yagnesh Trivedi
Designation :	Chief Finance Officer and Operation Head

MAJOR SHAREHOLDERS

As on 30.09.2013

Names of Shareholders	No. of Shares	% of Holding
Bhupendra Rasiklal Shah	20000	20.00
Amit Bhupendra Shah	36000	36.00
Hitendra Rasiklal Shah	15000	15.00
Paresha Bharat Shah	15000	15.00
Hinaxi Bhupendra Shah	5000	5.00
Rupal Amit Shah	5000	5.00
Amit Shah (HUF)	4000	4.00
Total	100000	100.00

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2013

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others
Bodies corporate
Directors or relatives of Directors
Other top fifty shareholders
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Copper Wire and Electrical Products.
Exports :
Products :	Copper Wire and Electrical Products
Countries :	· Europe · Middle East · USA · UK · Far East · Asian Countries
Imports :
Products :	Raw Material
Countries :	· Middle East · Far East Country
Terms :
Selling :	Cash and Advance Payment
Purchasing :	Cash and Advance Payment

GENERAL INFORMATION

No. of Employees :

35 (Approximately)

Bankers :

· Bank of Baroda, Mount Poinsur Branch, I.C. Colony, Church Compound, Borivali (West), Mumbai – 400103, Maharashtra, India

· Indusind Bank Limited, Acme Plaza, CTS No.32 Opposite Sangam Talkies, Andheri-Kurla Road, Andheri (East), Mumbai - 400059, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
From Banks ‐ for Machinery	11.659	11.637
Short Term Borrowings
Packing Credit	43.893	55.109
Buyers Credit	88.362	87.984
Cash Credit	45.668	36.568
Overdraft against Fixed Deposits	17.129	17.344
Total	206.711	208.642

Banking Relations :	--
Auditors :
Name :	Gor and Savla Chartered Accountants
Address :	Unit No G2, N.J Industrial Estate, Survey No 265/A, Chinchpada, Gokhivare Village, Vasai Road (East), Thane – 401208, Maharashtra, India
PAN No.:	AAIFG6965G
Sister Concerns :	· BB Elctro Technia Line of Business: Manufacturer of Electric Goods. Address: Unit No.G-2, Survey No.265/A, N.J. Industrial Estate, Chinch Pada, Gokhivire Village, Vasai Road, Thane – 401 208, Maharashtra, India · Infotech Corporation Line of Business: Manufacturer of Electric Goods. Address: Unit No.G-2, Survey No.265/A, N.J. Industrial Estate, Chinch Pada, Gokhivire Village, Vasai Road, Thane – 401 208, Maharashtra, India

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.10/- each	Rs.1.000 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	10.000	10.000
(b) Reserves & Surplus	9.152	1.487
(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)	19.152	11.487
(3) Non-Current Liabilities
(a) long-term borrowings	92.548	73.244
(b) Deferred tax liabilities (Net)	2.308	0.092
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	94.856	73.336
(4) Current Liabilities
(a) Short term borrowings	195.052	197.005
(b) Trade payables	4.947	6.700
(c) Other current liabilities	5.288	1.652
(d) Short-term provisions	3.220	0.720
Total Current Liabilities (4)	208.507	206.077
TOTAL	322.515	290.900
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	38.472	27.413
(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	0.000	0.000
(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	0.000
Total Non-Current Assets	38.472	27.413
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	69.658	70.374
(c) Trade receivables	126.820	90.139
(d) Cash and cash equivalents	42.380	62.142
(e) Short-term loans and advances	37.594	36.034
(f) Other current assets	7.591	4.798
Total Current Assets	284.043	263.487
TOTAL	322.515	290.900

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012
	SALES
		Income
		Other Income
		TOTAL	555.935	79.058
Less	EXPENSES		543.579	76.628
	PROFIT/(LOSS) BEFORE TAX		12.356	2.430
Less	TAX		4.716	0.813
	PROFIT/(LOSS) AFTER TAX		7.640	1.617
	Earnings Per Share (Rs.)		76.40	NA

Particulars	31.03.2014
Sales Turnover (Approximately)	640.000

The above information has been parted by Mr. Yagnesh Trivedi

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012
PAT / Total Income	(%)	1.37	2.05
Return on Total Assets (PBT/Total Assets}	(%)	3.83	0.84
Return on Investment (ROI) (PBT/Networth)		0.65	0.21
Debt Equity Ratio (Total Debt /Networth)		15.02	23.53
Current Ratio (Current Asset/Current Liability)		1.36	1.28

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions
Share Capital	10.000	10.000
Reserves & Surplus	1.487	9.152
Net worth	11.487	19.152
long-term borrowings	73.244	92.548
Short term borrowings	197.005	195.052
Total borrowings	270.249	287.600
Debt/Equity ratio	23.527	15.017

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions
Sales	79.058	555.935
		603.199

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions
Sales	79.058	555.935
Profit	1.617	7.640
	2.05%	1.37%

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last two 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	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	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 LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Loans from Shareholders	51.611	57.517
Loans From Others	29.278	4.090
Total	80.889	61.607

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10459802	17/10/2013	30,000,000.00	Bank Of Baroda	Mount Poinsur Branch, I. C. Colony, Church Compound, Borivali (West), Mumbai, Maharashtra - 400103, India	B89374482
2	10460134	27/09/2013	66,000,000.00	Indusind Bank Limited	Acme Plaza, Cts No.32 Opp. Sangam Talkies,, Andheri-Kurla Road, Andheri (E), Mumbai, Maharashtra - 400059, India	B89504724
3	10370457	05/09/2012 *	251,717,000.00	Bank Of Baroda	Mount Poinsur Branch, I. C. Colony, Church Compound, Borivali (West), Mumbai, Maharashtra - 400103, India	B57557126

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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.60.67
UK Pound	1	Rs.100.81
Euro	1	Rs.80.72

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	DIV
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		34

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.