MIRA INFORM REPORT

Report No. :	350659
Report Date :	23.11.2015

IDENTIFICATION DETAILS

Name :	G. C. THREADS PRIVATE LIMITED
Registered Office :	Bhawanigarh Road, Samana – 147101, Punjab
Mobile No.:	91-9256600005
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	09.08.2010
Com. Reg. No.:	16-034160
Capital Investment / Paid-up Capital :	Rs.128.285 Million
CIN No.: [Company Identification No.]	U17200PB2010PTC034160
IEC No.:	301001071
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AADCG9170H
Legal Form :	Private Limited Liability Company.
Line of Business :	The subject is engaged in the manufacturing of Cotton Yarn.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 430000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject was incorporated in the year 2010, having satisfactory track. Rating takes into consideration company’s decent networth base, adequate cash accruals, satisfactory profitability margin and has favorable gap between trade receivables and payables. It has moderate debt levels. Trade relations are fair. Business is active. Payments are slow but correct. The company can be considered for business dealings at usual 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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	Not Available

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 31-03-2015.

INFORMATION DENID BY

Name :	Mr. Manu Garg
Designation :	Director
Contact No.:	91-9256600005
Date :	21.11.2015

LOCATIONS

Registered Office :	Bhawanigarh Road, Samana – 147101, Punjab, India
Tel. No.:	91-1764-220389
Mobile No.:	91-9256600005 (Mr. Manu Garg)
Fax No.:	Not Available
E-Mail :	gcthreads@gmail.com
Website :	www.gcthreads.com

DIRECTORS

AS ON 23.09.2014

Name :

Mr. Sham Lal

Designation :

Director

Address :

Waraich Colony, Patiala – 147101, Punjab, India

Date of Birth/Age :

12.09.1957

Date of Appointment :

09.08.2010

PAN No.:

AANPL8128P

DIN No. :

00127569

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	U27109PB1999PTC022766	R M STRIPS PRIVATE LIMITED	Director	12/07/1999	12/07/1999	-	Active	NO
2	U28910PB2001PTC024292	V.M. PIPES PRIVATE LIMITED	Director	25/03/2003	25/03/2003	-	Active	NO
3	U27104PB2005PLC028376	G.C.STRIPS LIMITED	Director	09/05/2005	09/05/2005	-	Active	NO
4	U26921PB1993PTC012967	R M STELL PIPES PRIVATE LIMITED	Director	01/09/2008	01/09/2008	-	Active	NO
5	U17219PB1999PLC022951	G C SPINTEX LIMITED	Additional director	11/10/2008	11/10/2008	05/03/2009	Active	NO
6	U17200PB2010PTC034160	G. C. THREADS PRIVATE LIMITED	Director	09/08/2010	09/08/2010	-	Active	NO

Name :

Mr. Manu Garg

Designation :

Director

Address :

H. No. B-12/181, Waraich Colony, Patiala – 147101, Punjab, India

Date of Birth/Age :

08.05.1986

Date of Appointment :

09.08.2010

PAN No.:

ARKPS0240F

DIN No. :

00125987

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	U27104PB2005PLC028376	G.C.STRIPS LIMITED	Director	09/05/2005	09/05/2005	-	Active	NO
2	U17110PB2005PLC029077	RADIANT TEXTILES LIMITED	Director	01/06/2007	01/06/2007	20/10/2007	Active	NO
3	U26921PB1993PTC012967	R M STELL PIPES PRIVATE LIMITED	Director	01/09/2008	01/09/2008	-	Active	NO
4	U28910PB2001PTC024292	V.M. PIPES PRIVATE LIMITED	Director	01/09/2008	01/09/2008	-	Active	NO
5	U17219PB1999PLC022951	G C SPINTEX LIMITED	Whole-time director	01/05/2009	01/05/2009	-	Active	NO
6	U17200PB2010PTC034160	G. C. THREADS PRIVATE LIMITED	Director	09/08/2010	09/08/2010	-	Active	NO

MAJOR SHAREHOLDERS

AS ON 23.09.2014

Names of Shareholders	No. of Shares
Sham Lal S/o Devi Dayal	1175000
Manu Garg S/o Ramesh Kumar	280500
G.C. Spintex Limited, India	3320000
G.C. Fibres Limited, India	5825000
Vivek Garg HUF	110000
Varun Garg HUF	50000
Sham Sunder S/o Chiranji Lal Jindal	80000
Rakesh Kumar S/o Shyam Sundar	80000
Rakesh Kumar HUF	80000
Kiran Lata w/o Shyam Sundar	80000
Santosh Jindal W/o Rakesh Kumar	80000
Sham Sunder HUF	80000
Varun Garg S/o Sham Lal Garg	160500
Aruna Garg W/o Sham Lal Garg	165500
Karuna Garg W/o Ramesh Kumar Garg	140500
Vivek Garg S/oSmal Lal Garg	260500
Ramesh Kumar Garg S/o Devi Dayal Garg	261000
Anuradha Singla W/o Parvesh Kumar	90000
Parvesh Kumar S/o Ved Parkash	110000
Pawan Kumar S/o Hari Ram	90000
Malvika Garg W/o Vivek Garg	160000
Pratibha Garg W/o Varun Garg	150000
Total	12828500

Equity Share Break up (Percentage of Total Equity)

AS ON 23.09.2014

Category	Percentage
Bodies corporate	69.00
Directors or relatives of Directors	31.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The subject is engaged in the manufacturing of Cotton Yarn.

Products :

Item Code No.	Product Description
52079000	Cotton Yarn

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

Information declined by the management

Bankers :

• Oriental Bank of Commerce, Main Branch, Samana, Punjab, India

Banker Name	Punjab National Bank
Branch Address	Malkana Branch, Samana - 147101, Punjab, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2015	As on 31.03.2014
LONG TERM BORROWINGS
Term Loans From Banks [Hypothecation of Building and Machinry ]	200.176	252.024
SHORT TERM BORROWINGS
Working Capital Loans From Banks [Hypothecation of Stock Andbook Debts]	113.289	170.620
Total	313.465	422.644

Auditors :
Name :	Rajesh Krishan and Associates Chartered Accountants
Address :	Tehsil Road, Samana, Punjab, India
PAN N Income-tax PAN of auditor or auditor's firm :	ADIPG7589D
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	G C Spintex Limited, India [U17219PB1999PLC022951]

CAPITAL STRUCTURE

AS ON 23.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
13000000	Equity Shares	Rs.10/- each	Rs.130.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12828500	Equity Shares	Rs.10/- each	Rs.128.285 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014	31.03.2013
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	128.285	117.435	112.435
(b) Reserves & Surplus	23.836	11.755	4.369
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	152.121	129.190	116.804
(3) Non-Current Liabilities
(a) long-term borrowings	231.810	278.452	223.472
(b) Deferred tax liabilities (Net)	7.983	6.962	2.713
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	239.793	285.414	226.185
(4) Current Liabilities
(a) Short term borrowings	113.289	170.620	22.036
(b) Trade payables	22.446	5.974	1.574
(c) Other current liabilities	50.158	58.222	42.682
(d) Short-term provisions	16.295	11.469	7.261
Total Current Liabilities (4)	202.188	246.285	73.553
TOTAL	594.102	660.889	416.542
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	346.469	388.768	250.474
(ii) Intangible Assets	0.000	0.006	0.012
(iii) Capital work-in-progress	0.000	0.000	16.789
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	12.911	6.515	2.939
Total Non-Current Assets	359.380	395.289	270.214
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	144.056	175.509	31.114
(c) Trade receivables	52.534	49.522	22.450
(d) Cash and cash equivalents	12.831	12.433	23.183
(e) Short-term loans and advances	0.375	1.233	56.182
(f) Other current assets	24.926	26.903	13.399
Total Current Assets	234.722	265.600	146.328
TOTAL	594.102	660.889	416.542

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	TOTAL INCOME	1065.038	1042.470	539.868
Less	EXPENSES TOTAL	1001.689	977.584	498.269
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	63.349	64.886	41.599
Less	DEPRECIATION/ AMORTISATION	48.271	50.199	33.957
	PROFIT/ (LOSS) BEFORE TAX	15.078	14.687	7.642
Less	TAX	4.063	7.293	3.819
	PROFIT/ (LOSS) AFTER TAX	11.015	7.394	3.823
Add	Opening Balance of Profit & Loss	11.755	4.369	NA
Less	Adjustments	0.019	0.080	NA
	Balance Carried to the B/S	22.751	11.683	NA
	Earnings / (Loss) Per Share (Rs.)	0.86	0.34	0.30

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	46.093	47.333	37.667
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	140.085	(5.047)	22.163

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	1.03	0.71	0.71
Return on Total Assets (PBT/Total Assets}	(%)	2.54	2.22	1.91
Return on Investment (ROI) (PBT/Networth)		0.10	0.11	0.07
Debt Equity Ratio (Total Debt /Networth)		2.57	3.84	2.42
Current Ratio (Current Asset/Current Liability)		1.16	1.08	1.99

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	112.435	117.435	128.285
Reserves & Surplus	4.369	11.755	23.836
Net worth	116.804	129.190	152.121
Long-term borrowings	223.472	278.452	231.810
Short term borrowings	22.036	170.620	113.289
Current Maturities Of Long-Term Debts	37.667	47.333	46.093
Total borrowings	283.175	496.405	391.192
Debt/Equity ratio	2.424	3.842	2.572

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	539.868	1042.470	1065.038
		93.097	2.165

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	539.868	1042.470	1065.038
Profit	3.823	7.394	11.015
	0.71%	0.71%	1.03%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	Yes
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2015	As on 31.03.2014
LONG TERM BORROWINGS
Other loans and advances	31.634	26.428
Total	31.634	26.428

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10296567	10/03/2014 *	447,800,000.00	ORIENTAL BANK OF COMMERCE	ORIENTAL BANK OF COMMERCE, SAMANA, PUNJAB - 147101, INDIA	C02300531

* Date of charge modification

FIXED ASSETS

Tangible assets

• Land
• Buildings
• Plant and equipment
• Factory equipment’s
• Vehicles

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.66.09
UK Pound	1	Rs.101.04
Euro	1	Rs.70.86

INFORMATION DETAILS

Information Gathered by :	KAM
Analysis Done by :	AMR
Report Prepared by :	GEET

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		43

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.