MIRA INFORM REPORT

Report No. :	352743
Report Date :	30.11.2015

IDENTIFICATION DETAILS

Name :	GARG ACRYLICS LIMITED (w.e.f. 12.03.1995)
Formerly Known As :	GARG INDUSTRIES LIMITED MERCURY FINANCE AND LEASING COMPANY LIMITED
Registered Office :	209, M G House Community, Centre Wazirpur Industrial Area, Delhi – 110052
Tel. No.:	91-161-4692500
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	22.11.1983
Com. Reg. No.:	55-017001
Capital Investment / Paid-up Capital :	Rs.208.304 Million
CIN No.: [Company Identification No.]	L74999DL1983PLC017001
IEC No.:	3095002017
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAACG3332N
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. [Listed in Delhi Stock Exchange]
Line of Business :	Manufacturer, Exporter and Importer of Yarn.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 7300000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Exist
Comments :	Subject is an established company having a satisfactory track record. The rating takes consideration on company’s established track record in spinning business, promoters’ long standing experience in textiles industry with established market presence and its diversified product mix. The rating however, continuous to remain constrained on account of majority of revenues emanating from commodity products, fragmented nature and commoditized nature and low profitability of the company. However, trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings with usual trade terms and conditions. NOTE:- As per registrar of companies the date of balance sheet (i.e. financial filed) is show as 31.03.2015 but the documents related to the financials are not been available from any sources. Company shares are been traded on Delhi Stock Exchange [DSE].

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	ICRA
Rating	Long term rating= BBB- Suspended
Rating Explanation	Inadequate credit quality and high credit risk.
Date	August, 2015

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.

LOCATIONS

Registered Office :	209, M G House Community, Centre Wazirpur Industrial Area, Delhi – 110052, India
Tel. No. :	91-161-4692500
Fax No. :	Not Available
E-Mail :	gargacrylics@yahoo.com
Website :	www.gargltd.com
Factory 1:	Kanganwala Road, P.O. Jugiana, G.T. Road, Ludhiana – 141120, Punjab, India
Tel. No.:	91-161-4692500
Fax No.:	91-161-2510084
Location :	Owned
Factory 2 :	Located at · Bhatinda, Punjab, India
Location :	Owned
Factory 3 :	Located at · Paddi, Ludhiana, Punjab, India
Location :	Owned

DIRECTORS

AS ON 30.09.2014

Name :

Mr. Sahil Goyal

Designation :

Director

Address :

39-A, Ring Road, Lajpat Nagar, New Delhi - 110024, India

Date of Birth/Age :

02.07.1983

Date of Appointment :

28.09.2013

DIN No. :

00148380

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	U74899HR1965PLC008345	HARYANA MILK FOODS LIMITED	Whole-time director	29-09-2001	29-09-2001	26-11-2014	Active	NO
2	U74899DL1999PTC100265	MERIGOLD AGRO FOODS PRIVATE LIMITED	Director	01-03-2007	01-03-2007	-	Active	NO
3	U51909HR1983PLC016882	MERI GOLD CANS LIMITED	Director	30-08-2008	30-08-2008	-	Active	NO
4	U70101DL2008PTC175556	INDOGLOBAL INFRATECH PRIVATE LIMITED	Director	05-02-2010	05-02-2010	-	Active	NO
5	U74900DL2009PTC188689	XJ ELEVATOR INDIA PRIVATE LIMITED	Director	06-08-2010	06-08-2010	15-12-2010	Active	NO
6	L74999DL1983PLC017001	GARG ACRYLICS LIMITED	Director	28-09-2013	15-03-2013	-	Active	NO
7	L74899DL1983PLC014942	BHUSHAN STEEL LIMITED	Additional director	20-09-2014	20-09-2014	-	Active	NO

Name :

Mr. Sanjiv Garg

Designation :

Managing Director

Address :

61-A, Sant Nagar, Civil Lines, Ludhiana - 141001, Punjab, India

Date of Birth/Age :

10.11.1960

Qualification :

Graduate (B.Com)

Date of Appointment :

01.01.2011

PAN No. :

AAZPG5581D

DIN No. :

00217156

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	U17200PB1985PTC006564	GAL COTTEX PRIVATE LIMITED	Director	29-11-1985	29-11-1985	01-06-2009	Active	NO
2	L99999PB1973PLC003385	GARG FURNACE LIMITED	Director	31-07-2010	19-01-1988	03-10-2011	Active	NO
3	U74899DL1982PTC014833	RAJA DEVI INVESTMENT AND TRADING CO PVT LTD	Director	10-02-1988	10-02-1988	-	Active	NO
4	U24304PB2002PTC025030	OM YARN PLUS PRIVATE LIMITED	Director	23-07-2005	23-07-2005	20-05-2014	Active	NO
5	L51909PB2000PLC023679	SEL MANUFACTURING COMPANY LIMITED	Director	19-07-2007	08-05-2007	06-06-2012	Active	NO
6	U70101DL2008PTC175556	INDOGLOBAL INFRATECH PRIVATE LIMITED	Director	18-03-2008	18-03-2008	-	Active	NO
7	U17300PB2009PTC032731	PUSHPA YARNS PRIVATE LIMITED	Director	12-05-2010	12-05-2010	-	Active	NO
8	L74999DL1983PLC017001	GARG ACRYLICS LIMITED	Managing director	01-01-2011	01-08-2010	-	Active	NO

Name :

Mr. Rajiv Garg

Designation :

Managing Director

Address :

61-A, Sant Nagar, Civil Lines, Ludhiana - 141001, Punjab, India

Date of Birth/Age :

02.07.1966

Qualification :

Graduate (B.Com)

Date of Appointment :

01.01.2011

PAN No. :

AAZPG5575F

DIN No. :

00444558

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	L99999PB1973PLC003385	GARG FURNACE LIMITED	Director	19-01-1988	19-01-1988	31-07-2010	Active	NO
2	L74999DL1983PLC017001	GARG ACRYLICS LIMITED	Managing director	01-01-2011	28-09-1994	-	Active	NO
3	U67120PB1995PLC017032	GARG FINCAP LIMITED	Director	14-09-1995	14-09-1995	25-04-2009	Active	NO
4	U65921PB1986PTC006710	UJJWAL HOLDINGS PRIVATE LIMITED	Director	15-05-2001	15-05-2001	20-10-2008	Active	NO
5	U74899HR1965PLC008345	HARYANA MILK FOODS LIMITED	Director	29-09-2001	29-09-2001	18-08-2014	Active	NO
6	U17300PB2009PTC032731	PUSHPA YARNS PRIVATE LIMITED	Director	12-05-2010	12-05-2010	-	Active	NO
7	U93000PB2014NPL038584	ENTREPRENEURS' ORGANIZATION (PUNJAB)	Director	01-04-2014	01-04-2014	-	Active	NO

Name :

Mr. Arun Sharma

Designation :

Director

Address :

H.No. 2785/1, Gurdev Nagar, Ludhiana - 141001, Punjab, India

Date of Birth/Age :

01.08.1960

Date of Appointment :

28.09.2013

DIN No. :

00839359

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
1	U65910PB1995PLC015565	MAJESTIC FINANCIAL SERVICES LIMITED	Director	05-01-1995	05-01-1995	-	Active
2	U45201PB2002PTC024960	B A CONSTRUCTIONS PRIVATE LIMITED	Director	20-02-2002	20-02-2002	-	Active
3	U27100PB2005PTC027968	MANMEET ALLOYS PRIVATE LIMITED	Director	14-02-2005	14-02-2005	20-09-2014	Active
4	L74999DL1983PLC017001	GARG ACRYLICS LIMITED	Director	28-09-2013	15-03-2013	-	Active
5	U51397PB2013PTC038162	AKOONS LIFE SCIENCES PRIVATE LIMITED	Director	06-12-2013	06-12-2013	-	Active

Name :

Mr. Ujjwal Garg

Designation :

Whole-time Director

Address :

61-A, Sant Nagar, Civil Lines, Ludhiana - 141001, Punjab, India

Date of Birth/Age :

08.09.1985

Qualification :

B.Tech Textiles

Date of Appointment :

01.01.2011

PAN No. :

AIEPG3118K

DIN No. :

01234439

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	Company/ LLP Status	Defaulting status
1	L74999DL1983PLC017001	GARG ACRYLICS LIMITED	Whole-time director	01-01-2011	01-04-2006	Active	NO

Name :

Mr, Vijay Singhania

Designation :

Director

Address :

B-XIX-810,Singhania College, Near Prince Hostel, Civil Lines, Ludhiana - 141001, Punjab, India

Date of Birth/Age :

01.11.1966

Date of Appointment :

01.04.2006

DIN No. :

01234503

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	U67120PB1995PLC017032	GARG FINCAP LIMITED	Director	14-09-1995	14-09-1995	-	Active	NO
2	L15319DL1987PLC027698	K.R. FOODS LTD	Director	01-10-1998	01-10-1998	27-03-2012	Active	NO
3	U17200PB1984PLC006045	HIMACHAL YARNS LIMITED	Director	28-03-2002	28-03-2002	-	Active	NO
4	L74999DL1983PLC017001	GARG ACRYLICS LIMITED	Director	01-04-2006	01-04-2006	-	Active	NO

Name :

Mr, Pardeep Kumar Makkar

Designation :

Director

Address :

31, Avtar Nagar (Threeke), Near Octroi Post, Ferozepur Road, Ludhiana, Punjab, India

Date of Birth/Age :

28.03.1965

Date of Appointment :

29.09.1997

DIN No. :

01259777

KEY EXECUTIVES

Name :	Ridhima Sood
Designation :	Secretary
Address :	78,Bank Street, Doraha, Ludhiana, 141421, Punjab, India
Date of Birth/Age :	22.07.1987
Date of Appointment :	01.09.2014
PAN No.:	DWDPS6671H
Re-Constitution of Audit Committee :	Mr. Pardeep Makkar - Independent Director Chairman Mr. Vijay Singhania - Independent Director Member Mr. Arun Sharma - Independent Director Member
Re-Constitution of Nomination and Remuneration Committee :	Mr. Pardeep Makkar - Independent Director Chairman Mr. Vijay Singhania - Independent Director Member Mr. Arun Sharma - Independent Director Member
Re-Constitution of Stakeholders Relationship Committee :	Mr. Pardeep Makkar - Independent Director Chairman Mr. Vijay Singhania - Independent Director Member Mr. Rajiv Garg - Executive Director Member
Constitution of Corporate Social Responsibility Committee :	Mr. Sanjiv Garg - Executive Director Chairman Mr. Rajiv Garg - Executive Director Member Mr. Arun Sharma - Independent Director Member

MAJOR SHAREHOLDERS

AS ON 30.09.2014

NOTE: SHAREHOLDING DETAILS FILE ATTACHED.

AS ON 30.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	% of Holding
Bodies corporate	60.68
Directors or relatives of Directors	15.94
Other top fifty shareholders	16.03
Others	7.35
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Yarn.

Products :

Item Code No. (ITC Code)	Product Description
52071000	Cotton Yarn, Synthetic Yarn, Blended Yarn, Garments, Other (Waste)

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Available

Imports :

Not Available

Terms :

Selling :

Not Available

Purchasing :

Not Available

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

Not Available

Bankers :

Banker Name :	Punjab and Sind Bank – Consortium
Branch :	Saban Bazaar, Ludhiana - 141008, Punjab, India
Person Name (With Designation) :	Not Available
Contact Number :	Not Available
Name of Account Holder :	Not Available
Account Number :	Not Available
Account Since (Date/Year of Account Opening) :	Not Available
Average Balance Maintained :	Not Available
Credit Facilities Enjoyed (CC/OD/Term Loan) :	Not Available
Account Operation :	Not Available
Remark :	Not Available

· Punjab National Bank, Miller Ganj, Vishawkarma Chowk, Ludhiana - 141003, Punjab, India

· IDBI Bank Limited, Specialised Corporate, 1^st SCO 126-128, Kalinga Towers, Feroze Gandhi Market, Ludhiana - 141001, Punjab, India

· Oriental Bank Of Commerce, Jandhu Tower, G.T. Road, Miller Ganj, Ludhiana - 141003, Punjab, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG TERM BORROWINGS
Rupee term loans from banks	3709.041	2837.587
SHORT TERM BORROWINGS
Working capital loans from banks	2551.991	0.000
Rupee term loans from banks	0.000	2470.535
Total	6261.032	5308.122

NOTE

LONG TERM BORROWINGS

Term loans from Banks are secured by equitable mortage of entire Land and Building and Fixed Assets (immovable and movable) of the Company both present and future, ranking Parri-passu basis and further secured by Second Parri-passu charge on the entire current assets of the company

SHORT TERM BORROWINGS

The Working Capital (Hypothecation) Loans are secured by the hypothecation of Stock in trade (except pledged stock), Book Debts and other current assets of the company and further secured by second Parri-passu charge on the entire fixed assets of the company

Auditors :
Name :	Dass Khanna and Company Chartered Accountants
Address :	B-XX- 2815, 1^st Floor, Gurdev Nagar, Pakhowal Road, Ludhiana – 141001, Punjab, India
PAN No.:	AABFD5151G
Memberships :	Not Available
Collaborators :	Not Available
Associates :	· Pushpa Yarns Private Limited CIN No.: U17300PB2009PTC032731 · Om Yarn Plus Private Limited CIN No.: U24304PB2002PTC025030 · Garg International

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
900,000	Equity Shares	Rs.10/- each	Rs. 9.000 Million
24,300,000	Preference Shares	Rs.10/- each	Rs. 243.000 Million
	Total		Rs. 252.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
830,350	Equity Shares	Rs.10/- each	Rs. 8.304 Million
20,000,000	Preference Shares	Rs.10/- each	Rs. 200.000 Million
	Total		Rs. 208.304 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	208.304	207.480	206.760
(b) Reserves & Surplus	2345.420	1843.542	1487.829
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	154.250	131.525
Total Shareholders’ Funds (1) + (2)	2553.724	2205.272	1826.114
(3) Non-Current Liabilities
(a) long-term borrowings	3738.594	2863.660	1700.219
(b) Deferred tax liabilities (Net)	190.667	145.857	94.950
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	12.554	2.160	2.949
Total Non-current Liabilities (3)	3941.815	3011.677	1798.118
(4) Current Liabilities
(a) Short term borrowings	2551.991	2470.535	1807.927
(b) Trade payables	956.297	606.685	1005.759
(c) Other current liabilities	690.405	378.552	303.532
(d) Short-term provisions	3.634	16.941	8.034
Total Current Liabilities (4)	4202.327	3472.713	3125.252
TOTAL	10697.866	8689.662	6749.484
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	5712.427	4439.143	2580.379
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	72.299	105.815	532.959
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.174	0.174	0.174
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	45.459	45.296	43.909
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	5830.359	4590.428	3157.421
(2) Current assets
(a) Current investments	1.339	0.805	0.550
(b) Inventories	2654.915	2225.896	1932.183
(c) Trade receivables	1402.264	1288.813	1380.863
(d) Cash and cash equivalents	104.847	78.344	39.842
(e) Short-term loans and advances	359.004	261.739	163.385
(f) Other current assets	345.138	243.637	75.240
Total Current Assets	4867.507	4099.234	3592.063
TOTAL	10697.866	8689.662	6749.484

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	11028.598	9505.557	8522.630
		Other Income	15.065	16.621	(27.037)
		TOTAL (A)	11043.663	9522.178	8495.593
Less	EXPENSES
		Cost of Materials Consumed	6109.812	4459.622	4200.228
		Purchases of Stock-in-Trade	1596.783	2544.949	2499.199
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(408.173)	(27.620)	(66.150)
		Employees benefits expense	417.792	300.566	254.683
		Other expenses	1766.542	1152.964	810.066
		TOTAL (B)	9482.756	8430.481	7698.026
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1560.907	1091.697	797.567
Less	FINANCIAL EXPENSES (D)		589.786	426.598	400.311
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		971.121	665.099	397.256
Less	DEPRECIATION/ AMORTISATION (F)		626.873	402.273	342.604
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		344.248	262.826	54.652
Less	TAX (H)		47.422	86.393	25.091
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		296.826	176.433	29.561
	EARNINGS IN FOREIGN CURRENCY		3844.545	2532.471	2318.879
	IMPORTS
		Raw Materials	61.899	76.105	12.558
		Components and Spare Parts	9.374	6.264	5.375
		Capital Goods	412.920	355.297	37.798
	TOTAL IMPORTS		484.193	437.666	55.731
	Earnings / (Loss) Per Share (Rs.)
	Basic		375.82	247.70	49.27
	Diluted		375.82	246.47	49.19

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	506.377	274.447	225.816
Cash generated from operations	NA	NA	NA
Net cash flow from (used in) operations	888.063	(118.584)	252.904

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	2.69	1.86	0.35
Operating Profit Margin (PBDIT/Sales)	(%)	14.15	11.48	9.36
Return on Total Assets (PBT/Total Assets}	(%)	3.24	3.06	0.88
Return on Investment (ROI) (PBT/Networth)		0.13	0.12	0.03
Debt Equity Ratio (Total Debt/Networth)		2.66	2.54	2.04
Current Ratio (Current Asset/Current Liability)		1.16	1.18	1.15

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	206.760	207.480	208.304
Reserves & Surplus	1487.829	1843.542	2345.420
Share Application money pending allotment	131.525	154.250	0.000
Net worth	1826.114	2205.272	2553.724
long-term borrowings	1700.219	2863.660	3738.594
Short term borrowings	1807.927	2470.535	2551.991
Current Maturities of Long term debt	225.816	274.447	506.377
Total borrowings	3733.962	5608.642	6796.962
Debt/Equity ratio	2.045	2.543	2.662

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	8522.630	9505.557	11028.598
		11.533	16.023

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	8522.630	9505.557	11028.598
Profit	29.561	176.433	296.826
	0.35%	1.86%	2.69%

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	No
8	Designation of contact person	No
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	Yes
32	Litigations that the firm/promoter involved in	Yes
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

LITIGATION DETAILS

IN THE HIGH COURT OF DELHI AT NEW DELHI

  ITA 136/2013

  COMMISSIONER OF INCOME TAX-IV ..... Appellant

  Through : Mr Kamal Sawhney

versus

  GARG ACRYLICS LIMITED ..... Respondent

  Through : None

  CORAM:

HON'BLE MR JUSTICE BADAR DURREZ AHMED

HON'BLE MR JUSTICE R.V.EASWAR

O R D E R

20.03.2013

  The learned counsel for the appellant informs us that in respect of
  the very same assessee, the appeal on the question of sales tax subsidy
  has already been admitted by this Court in respect of another assessment
  year. That appeal is numbered as ITA 700/2012. A copy of the order
  passed on 07.01.2013 admitting the said appeal has been placed before us.
  Consequently, we admit this appeal. The following substantial question
  of law arises for the consideration of this Court:-

  (1) Whether the Income Tax Appellate Tribunal erred in holding that the
  subsidy of sales tax received by the assessee to the extent of
  `?2,29,30,874/- was a capital receipt and not a revenue receipt?

  Printing of paper books is dispensed with. Notice of admission of
  this appeal shall go to the respondent. The parties are at liberty to
  file additional documents within six weeks, provided they were part of
  the record before the Tribunal.

  Tag along with ITA 700/2012.

  BADAR DURREZ AHMED, J

  R.V.EASWAR, J

  MARCH 20, 2013

  SR

  $ 2

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10482547	29/01/2014	500,000,000.00	PUNJAB NATIONAL BANK	MILLER GANJ, VISHAWKARMA CHOWK, LUDHIANA, PUNJAB - 141003, INDIA	B98437882
2	10459483	22/10/2013	150,000,000.00	IDBI BANK LIMITED	1ST FLOOR, SCO-126-128, KALINGA TOWER, FEROZE GANDHI, LUDHIANA, PUNJAB - 141001, INDIA	B89133078
3	10454327	20/09/2013	50,000,000.00	PUNJAB NATIONAL BANK	MILLER GANJ, LUDHIANA, PUNJAB - 141003, INDIA	B86981701
4	10403712	16/02/2013	540,000,000.00	IDBI BANK LIMITED	SPECIALISED CORPORATE, 1ST SCO 126-128,, KALINGA TOWERS, FEROZE GANDHI MARKET, LUDHIANA, PUNJAB - 141001, INDIA	B68424407
5	10399260	07/03/2014 *	1,000,000,000.00	PUNJAB NATIONAL BANK	MILLER GANJ,, VISHWAKARMA CHOWK, LUDHIANA, PUNJAB - 141003, INDIA	C00507384
6	10403987	03/04/2014 *	1,700,000,000.00	PUNJAB AND SIND BANK	PUNJAB & SIND BANK, LUDHIANA, PUNJAB - 141001, INDIA	C02652667
7	10399387	28/12/2012	3,000,000,000.00	PUNJAB NATIONAL BANK (CONSORTIUM)	MILLER GANJ, LUDHIANA, PUNJAB - 141003, INDIA	B66459819
8	10349504	16/03/2012	350,000,000.00	IDBI BANK LIMITED	SPECIALISED CORPORATE,1ST SCO 126-128, KALINGA TO WERS, FEROZE GANDHI MARKET, LUDHIANA, PUNJAB - 141003, INDIA	B37521416
9	10341727	06/02/2012	625,000,000.00	ALLAHABAD BANK	LINK ROAD, LUDHIANA, PUNJAB - 141003, INDIA	B34828582
10	10330558	23/12/2011	375,000,000.00	ORIENTAL BANK OF COMMERCE	JANDHU TOWER, G.T. ROAD, MILLER GANJ, LUDHIANA, PUNJAB - 141003, INDIA	B30146864
11	10330562	23/12/2011	1,000,000,000.00	PUNJAB AND SIND BANK	SABAN BAZAR, LUDHIANA, PUNJAB - 141001, INDIA	B30147664
12	10330581	23/12/2011	1,000,000,000.00	PUNJAB NATIONAL BANK	MILLER GANJ, LUDHIANA, PUNJAB - 141003, INDIA	B30157549
13	10297943	06/06/2014 *	3,155,000,000.00	PUNJAB AND SIND BANK	SABAN BAZAAR, LUDHIANA, PUNJAB - 141008, INDIA	C07922131
14	10213724	12/07/2011 *	28,000,000.00	ORIENTAL BANK OF COMMERCE	OVERSEAS BRANCH,JANDU TOWER, G.T.ROAD, MILLER GANJ, LUDHIANA, PUNJAB - 141003, INDIA	B17926171
15	10206654	26/02/2010	200,000,000.00	IDBI BANK LIMITED	SPECIALISED CORPORATE,1ST SCO 126-128, KALINGA TOWERS, FEROZE GANDHI MARKET, LUDHIANA, PUNJAB - 141001, INDIA	A80303274
16	10064225	12/07/2011 *	1,060,000,000.00	PUNJAB NATIONAL BANK	MILLER GANJ, LUDHIANA, PUNJAB - 141008, INDIA	B18029561
17	10049887	18/03/2010 *	25,000,000.00	ORIENTAL BANK OF COMMERCE	OVERSEAS BRANCH, JANDU TOWER, G.T.ROAD, MILLER GANJ, LUDHIANA, PUNJAB - 141003, INDIA	A83004481
18	10049888	12/07/2011 *	80,000,000.00	ORIENTAL BANK OF COMMERCE	OVERSEAS BRANCH,JANDU TOWER, G.T.ROAD, MILLER GANJ, LUDHIANA, PUNJAB - 141003, INDIA	B17925272
19	10035639	27/08/2007 *	300,000,000.00	PUNJAB AND SIND BANK	SABAN BAZAR, LUDHIANA, PUNJAB - 141008, INDIA	A22938344
20	10035587	12/01/2007	200,000,000.00	PUNJAB AND SIND BANK	SABAN BAZAR, LUDHIANA, PUNJAB - 141008, INDIA	A09923830
21	10020927	24/08/2006	120,000,000.00	PUNJAB AND SIND BANK	SABAN BAZAR, LUDHIANA, PUNJAB - 141008, INDIA	A05280052
22	10013961	12/07/2011 *	1,140,000,000.00	PUNJAB AND SIND BANK	SABAN BAZAR, LUDHIANA, PUNJAB - 141008, INDIA	B17919523
23	10145946	17/02/2006	644,401,000.00	PUNJAB AND SIND BANK	SABAN BAZAR, LUDHIANA, PUNJAB - 141003, INDIA	A00112037
24	90064540	11/02/2004	60,000,000.00	PUNJAB AND SIND BANK	SADAR BAZAR, LUDHIANA, PUNJAB, INDIA	-
25	90064278	24/10/2001 *	10,000,000.00	PUNJAB AND SIND BANK	SADAR BAZAR, LUDHIANA, PUNJAB, INDIA	-
26	90034959	12/01/2007 *	300,000,000.00	PUNJAB AND SIND BANK	SABAN BAZAR, LUDHIANA, PUNJAB - 141008, INDIA	-
27	90063881	27/12/1995	5,000,000.00	STATE BANK OF BIKANER AND JAIPUR	MADHOPURI CHOWK, LUDHIANA, PUNJAB - 141008, INDIA	-

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG TERM BORROWINGS
Loans taken for vehicles (Vehicle Loans from Banks and companies are repayable in monthly installments)	5.825	7.648
Other loans and advances, others	23.728	18.425
Total	29.553	26.073

BUSINESS REVIEW

ECONOMIC OUTLOOK

The world economy has been in recovery mode over the last couple of years even as the growth rate has been far from encouraging. As per latest estimates of the IMF, the world economy growth has been revised to 3.4% for 2014 from 3.7% projected earlier. The main reason of this slow global recovery has been attributed to the negative growth registered by the US economy during the first quarter, a high public debt level and rampant unemployment in the EU and Japan. The emerging economies have played a more proactive role in this recovery on the back of buoyant domestic market. China is projected to grow at 7.5%, which is lower than its long-term growth rate and can be primarily attributed to a reduction in investment in the housing sector. China has been plagued by long-term issues of sustainable growth, which can be addressed by rebalancing investment and consumption demand. As China is a big importer as well, the growth in China affects the growth of other Asian economies. The various reasons that have slowed growth in different parts of the world are largely domestic in nature. However, there remains one issue which connects economies around the world in the global financial market. With normalization of the American monetary policy, it is quite possible that a part of global finance channelized into emerging economies may go back to the US, raising the cost of finance and uncertainty in the stock markets in emerging economies. Therefore, over the next couple of years, developed and developing countries need to take cautious and coordinated efforts. A judicious mix of monetary policies and public spending in the domestic markets aimed at creating quality assets and consumption demand, may lead to faster recovery.

The Indian economy is expected to grow at less than 5% in FY2014-15. In the absence of a strong stimulus coming from the global economy, the responsibility of creating demand in the domestic economy lies with the government. Through increased public investments and private final consumption, the growth rate can be raised above 6% over the next couple of years. However, due to fiscal consolidation targets, not much public expenditure is expected. In such a scenario, structural reforms along with good governance measures are expected to promote growth though it could be a slow process and results would only be manifested in the long-term.

COTTON

Global cotton stock levels peaked at 84% of annual consumption (estimated closing stock as on July 2013 was 20.6 million tons and are estimated to increase to 21.6 million tons in July 2014 (88% of the estimated global cotton consumption).The global cotton consumption is estimated to decline by 0.7% for the international cotton year (CY) ended July 2013 in comparison to 2012/13 to 23.3 million tons. Fall in consumption is primarily due to slow pace of demand in second half of CY mainly from China. It is expected to grow by 5% in CY2014 to 24.5 million tons. However, it continues to remain below the peak levels of 26.5 million tons in CY2007 and CY2008. Despite an expected decline in cotton production by 2.3% for CY2014, global cotton production is expected to outpace the consumption for the fifth consecutive year in CY2014. Despite the continuous stock addition (approx 11 million tonnes in the last four years) international prices remained strong for the following reason: The global surplus was absorbed by the Chinese in last 4 years . Since the Chinese buying price was high compared to the international markets, surplus stock was locked in; besides, Chinese mills began to import more cotton, strengthening international prices. Till date there is more than 11 million tons of cotton is with Chinese Reserve. But the Chinese Government is planning to forfeit the policy of Reserve Purchase for CY2014 and come up with direct subsidy policy for Chinese Farmers, also restricted to Xinjiang region. Chinese government is also making available reserve stock at reduced prices to local mills which in turn implies reduced trade to China for CY 2014 and increase in stocks outside China also. It gives bearish outlook to World prices for CY2014 which is foreseeable by end of CY 2013.

India is having an opening stock of 0.595 million tons and is likely to produce about 6.6 million tons. By adding imports of 0.204 million tons, the total supply would be 7.43 million tons. Out of total supply about 5.1 million tons are expected to be consumed and 1.89 million tons of Export, leaving behind closing stock of merely 0.39 million tons. Of the estimated exports, 1.82 million tons have already left the Indian ports, which resulted in a price spike in Indian cotton starting from period December 2013 onwards which remains till July 2014. But with reduced demand of Yarn/Cotton from China (due to their own reduced prices of cotton)in second half of CY13, domestic cotton prices in India starts declining . For CY 14, record crop is for seen which will have further impact on the prices downside and it may possible that Government Minimum Support price operations come into effect.

COMPANY’S FUTURE OUTLOOK

The second phase of upcoming spinning unit at Bhathinda having 71808 spindles has fully started its commercial production w.e.f 30.01.2014. In the financial year 2014-15 except for certain debottleneck processes no major expansion has been planned.

FINANCIAL ANALYSIS AND REVIEW OF OPERATIONS:

SALES REVIEW:

During the year, the Company has registered Revenue from Operations of Rs.1102.96 crore as compared to Rs. 9532.800 Million showing an increase of 15.70 % over previous year. The exports of the Company increased from Rs. 2532.400 Million to Rs. 3844.500 Million, showing an increase of 51.81 % over the previous year owing to enhanced production and better product/market penetration.

PRODUCTION:

The production of Yarn increased from 31039.667 MT to 40384.245 MT during the year 2013-14. The production of Garments increased from 1044817 pieces to 1959532 pieces during the same period.

PROFITABILITY:

The Company earned profit before depreciation, interest and tax of Rs. 1528.700 Million as against Rs. 1068.500 Million in the previous year. After providing for depreciation of Rs. 626.800 Million (Previous year Rs. 402.300 Million), interest cost of Rs. 557.500 Million (Previous Year Rs. 403.400 Million), provision for tax Rs. 2.600 Million (Previous year Rs. 35.500 Million), provision for deferred tax (net of adjustments) Rs. 44.800 Million (previous year Rs. 50.900 Million), the net profit from operations worked out to Rs. 296.800 Million as compared to Rs. 176.400 Million in the previous year.

RESOURCES UTILISATION:

A) Fixed Assets:

The fixed assets (including work-in-progress) as at 31st March, 2014 were Rs. 5784.700 Million as compared to Rs. 4545.000 Million in the previous year.

B) Current Assets:

The current assets as on 31^st March, 2014 were Rs. 4867.500 Million as against Rs. 4099.200 Million in the previous year. Inventory level was at Rs. 2654.900 Million as compared to the previous year level of Rs. 2225.900 Million.

FIXED ASSETS

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Motor Vehicles

· Office Equipment

· Other Equipments

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.66.75
UK Pound	1	Rs.100.68
Euro	1	Rs.70.88

INFORMATION DETAILS

Analysis Done by :	KAS
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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		46

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.