MIRA INFORM REPORT

Report Date :

21.11.2008

IDENTIFICATION DETAILS

Name :	CHAUDHARY AND COMPANY
Registered Office :	201, Kapadia Apartments, S. V Road, Vile Parle (West), Mumbai-400056, Maharashtra
Country :	India
Financials (as on) :	30.11.2008 [Provisional]
Year of Establishment :	2007
TAN No.: [Tax Deduction & Collection Account No.]	MUMC15048F
PAN No.: [Permanent Account No.]	AAAFC0776H
Legal Form :	Partnership Concern with Unlimited Liability of Partner.
Line of Business :	Manufacturer of M.S. Structures, M.S. Beam, M.S. Channel, M.S. Angle, M.S. Round, M.S. Flat

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Status :	Project under Implementation
Payment Behaviour :	No Complaints
Litigation :	Clear
Comments :	Subject is a part of small sized Chaudhry Group comprising of 4 companies. However 2 of the Group companies, viz. Chaudhry Steel and Alloys Limited and Trilok Shipbreakers Limited have already stopped commercial operations. Only Kunal Ispat and Allied Industries Limited is operational at present. Trade relations are fair. The concern has a sizeable value of assets under its ownership as per valuation report dt. 21.10.2008 by Yardi Prabhu Consultants and Valuers Private Limited. No complaints has been heard from the market sources. It would be advisable to take adequate securities while dealing with the subject.

INFORMATION PARTED BY

Name :	Mr. Hemant Chaudhry
Designation :	Partner
Contact No.:	91-9833029216
Date :	04.09.2008

LOCATIONS

Registered / Administrative Office :	201, Kapadia Apartments, S. V Road, Vile Parle (West), Mumbai-400056, Maharashtra, India
Tel. No.:	91-22-26134058 / 26134086 / 58
Mobile No.:	91-9833029216
Fax No.:	91-22-26134059
E-Mail :	sales@cacsteel.com
Factory :	Gut No. 233/ 236/ 240/ 242 Village, Magathane, Post, Uchhat, Taluka, Wada, District, Thane, Maharashtra, India
Mobile No.:	91-9820066106/ 9833029216
Area :	5 Acre [Owned]

PARTNERS

Name :	Mr. Hemant Chaudhry
Designation :	Partner
Address :	7 Kamal Kunj, Road No. 5, Friends Society, J.V.P.D. Scheme, Mumbai - 400056
Date of Birth/Age :	27 Years
Qualification :	B.Com, MBA from University of Technology, Sydney
Name :	Mr. Dinesh Chaudhry
Designation :	Partner
Date of Birth/Age :	60 Years
Qualification :	B.Sc.
Name :	Mr. Kunal Chaudhry
Designation :	Partner
Date of Birth/Age :	24 Years
Qualification :	BMS From Mumbai University
Name :	Mr. Mukesh Chaudhry
Designation :	Partner
Address :	7 Kamal Kunj, Road No. 5, Friends Society, J.V.P.D. Scheme, Mumbai - 400056
Date of Birth/Age :	58 Years
Qualification :	Int. Comm.
Name :	Mrs. Sarita Chaudhry
Designation :	Partner
Address :	7 Kamal Kunj, Road No. 5, Friends Society, J.V.P.D. Scheme, Mumbai - 400056

BUSINESS DETAILS

Line of Business :

Manufacturer of M.S. Structures, M.S. Beam, M.S. Channel, M.S. Angle, M.S. Round, M.S. Flat

PRODUCTION STATUS

Year ending March 31	2008-09	2009-10	2010-11	2011-12	2012-13
Capacity	36000	36000	36000	36000	36000
No. of Machine	0	0	0	0	0
No of shifts of 12 hours each	1	1	1	1	1
No of months	12	12	12	12	12
	Mtpa	Mtpa	Mtpa	Mtpa	Mtpa
Installed Capacity / annum	36000	36000	36000	36000	36000
Installed Capacity / annum – product wise	Mtpa	Mtpa	Mtpa	Mtpa	Mtpa
Rolled items	36000	36000	36000	36000	36000
	36000	36000	36000	36000	36000
Capacity utilization	70 %	80 %	90 %	100 %	100 %
Prominent products
Rolled items	25200	28800	32400	36000	36000
Total	25200	28800	32400	36000	36000

GENERAL INFORMATION

Suppliers :	v Arora Refractories v Chaudhry and Chaudhry Shipbreakers Limited v Chaudhry Steel and Alloys Limited v First Steel Company Private Limited v Hari Om Builders and Developers v Juhu Vile Parle Gymkhana Club v Mumbai Port Trust v Nehal Enterprises v Patil Constructions v Patil Enterprises v Safe Security Services v Satguru Dayal Engineering Works v Trilok Shipbreakers Limited v Arihant Enterprises v Sai Krupa Engineering Works v Vallabh Industrial Traders v Kunal Ispat and Allied Industries Limited v Mahakoshal Refractories Private Limited v V J Fabricators v Vimal Alloys Private Limited v Action Construction Equipment Limited
Customers :	Retailers and End Users Arihant Enterprises Chawla Steel Rolling Mill Deluxe Foundry and Workshop Haryant Kumar Chaudhry Kamladevi Chaudhry Mankoo [India] Private Limited Patil Earthmovers Sai Krupa Engineering Works Shri Sai Hardware and Electrical Steel Rolling Mill of Maharashtra Vallabh Industrial Traders
Bankers :	Corporation Bank, (Khar), Vinayak Chambers, Khar (West) Union Bank of India Canara Bank SBI [Ghazibad]

Banking Relations :

Satisfactory

Auditors :

Name :

B. T. Bhomawat and Company

Chartered Accountants

Address :

10, Court House, L.T. Road, Dhobi Talao, Marine Lines, Mumbai - 400002

Associates/Subsidiaries :

Name of Company:	Kunal Ispat and Allied Industry Limited
Address:	201, Kapadia Apartment, Vile Parle (West), Mumbai
Line of Business:	Manufacturer of TMT Bars
Name of Company:	Trilok Shipbreakers Limited
Address:	32, Quay Street, Darukana, Mumbai
Line of Business:	Ship breaking
Name of Company:	Chaudhry Steel and Alloys Limited

CAPITAL STRUCTURE

Capital Investment :
Owned :	Rs. 63.778 Millions
Borrowed :	--
Total :	Rs. 63.778 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		30.11.2008 [Provisional]	31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		63.778	63.253	0.456	0.713
2] Share Application Money		0.000	0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.039	0.039
4] (Accumulated Losses)		0.000	0.000	0.000	0.000
NETWORTH		63.778	63.253	0.495	0.752
LOAN FUNDS
1] Secured Loans		11.296	9.196	11.448	0.020
2] Unsecured Loans		0.000	0.000	0.000	0.000
TOTAL BORROWING		11.296	9.196	11.448	0.020
DEFERRED TAX LIABILITIES		0.000	0.000	0.000	0.000
TOTAL		75.074	72.449	11.943	0.772
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		86.026	76.656	11.816	0.456
Capital work-in-progress		0.000	0.000	0.000	0.000
Movable Assets		0.006	0.011	0.000	0.000
INVESTMENT		0.415	0.415	0.415	0.415
DEFERREX TAX ASSETS		0.000	0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.704	0.704	0.704	0.554
	Sundry Debtors	0.155	0.720	3.336	0.561
	Cash & Bank Balances	1.227	0.056	0.196	0.127
	Other Current Assets	0.908	5.864	7.255	0.082
	Loans & Advances	7.929	3.299	0.054	0.090
Total Current Assets		10.923	10.643	11.545	1.414
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	22.402	15.276	11.833	1.513
	Provisions	0.000	0.000	0.000	0.000
Total Current Liabilities		22.402	15.276	11.833	1.513
Net Current Assets		[11.479]	[4.633]	[0.288]	[0.099]
MISCELLANEOUS EXPENSES		0.106	0.000	0.000	0.000
TOTAL		75.074	72.449	11.943	0.772

PROFIT & LOSS ACCOUNT

PARTICULARS		30.11.2008 [Provisional]	31.03.2008	31.03.2007	31.03.2006
Other Income		0.000	0.762	0.023	0.045
Closing Stock		0.704	0.704	0.704	0.554
Total Income		0.704	1.466	0.727	0.599
Net Profit		0.000	0.049	0.023	0.003
Expenditures :
	Opening Stock	0.704	0.704	0.554	0.554
	Salaries and Staff Expenses	0.000	0.572	0.090	0.000
	Administrative Expenses	0.000	0.079	0.058	0.042
	Financial Expenses	0.000	0.056	0.001	0.000
	Other Expenses	0.000	0.005	0.001	0.000
Total Expenditure		0.704	1.416	0.704	0.596

KEY RATIOS

PARTICULARS		30.11.2008	31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	--	3.34	3.16	0.50
Return on Total Assets (PBT/Total Assets}	(%)	--	0.06	0.10	0.16
Return on Investment (ROI) (PBT/Networth)		--	0.00	0.05	0.00
Debt Equity Ratio (Total Liability/Networth)		0.53	0.39	47.03	1.91
Current Ratio (Current Asset/Current Liability)		0.49	0.70	0.98	0.93

LOCAL AGENCY FURTHER INFORMATION

The registered office of the company has been shifted from 32, Quay Street, New Darukhana, Mumbai to the present address w.e.f. 24.07.2007

GENERAL INFORMATION

Name of the Owner and Address :

CHAUDHARY AND COMPANY

201, Kapadia Apartments, S. V Road, Vile Parle (West), Mumbai-400056, Maharashtra, India

Purpose for which valuation is made :

Ro ascertain fair market value of t he Plant and Machinery

Date on which valuation is made :

22.09.2008

Particulars of the Machinery valued :

Location of the Machine

Gut No. 233-236 and 240-242, Village – Magathane, Taluka Wada, Dist. Thane

Brief Description

The Engineer – Mr. V. Ramachandran inspected the Unit on 22.09.2008 along with Mr. Hemand Choudhry – The Partner of the company.

The Company has setup a fully automatic 60000 MT capacity of Rolling Mill Plant for the manufacturing of Angles, I-Beams, Channels etc. They are well versed and experienced in Iron and Steel business and have very good reputation in the market. They are experienced in managing Steel Rolling Mills besides other Iron and steel trading.

Type of Mill :

Automatic with 16” Roughing Mill – 3 stands. 16” Intermediate Mill – 2 stands, 16” Continuous Mill – 1 stand + 1 stand in continuous configuration with 18T per Hour Re-heating Furnace and Duplex Type Cooling Bed complete with Straightening Line.

Product Specification

Angles	ISA 35 X 35 X 5 mm to 110 X 110 X 10/12mm
Channels	ISMC 75 X 40 mm to 250 X 80 mm
Beams	ISMB 100 X 50 mm to 250 X 125 MM
MS Flat	40 X 5 mm to 150 X 10/12 mm

There is a good demand for all these products and marketing is not at all difficult for the promoters. They have good business relations in Steel Industry and vast experience in Steel Trading and finance.

Name of the Owner of the Machine

CHAUDHARY AND COMPANY

Condition of the machine

Machineries are new and they are under installations

WDV of the Machine as on the last balance Sheet Date as per final accounts

New machinery is being installed hence WDV is not applicable. The bank may obtain a copy of Balance Sheet from the party.

Whether machinery is in order / out of order ?

Machineries are new and are under installations

Machinery complete / incomplete

Machineries are new and are under installations

Whether machinery is to be scraped. Major repairs

No

Residual life of the machinery

Machineries are new and life of machinery is in the range of 15-25 years. Subject to proper repairs and maintenance.

SALES AND MARKETABILITY

Obtain instances of recent sale of the Machinery of same description size and enquire about the sale price with dealers of the machinery.	Prices of machineries are available by enquiry from the dealers and data available with them.
If the above information is not available, the basis on which valuation is based.	Present condition and market value of this plant and machineries.

PRESENT FAIR MARKET VALUATION

Valuation = Rs. 78.410 Millions

DISTRESS SALE VALUE

Rs. 70.000 Millions

Partners’ Profile:	The project is promoted by Mr. Mukesh Chaudhry and Mr. Hemant Chaudhry, nephew of the former. They are assisted by Mr. Dinesh Chaudhry and Mr. Kunal Chaudhry, elder brother and son respectively of Mr. Mukesh Chaudhry. Mr. Chaudhry, Age 58, Interest Commission, joined family business of ship breaking by taking over responsibilities at Alang in Gujarat. He is working in the capacity of the Karta of M/s. Trlokchand Chaudhry and Sons HUF. M/s. Trilokchand Chaudhry and Sons HUF is one of the Partners in the Firm Mr. Hemant Chaudhry, Age 27, B.Com, MBA from University of Technology, Sydney, had decided to groom himself in the family business after returning from Australia. Mr. Dinesh Chaudhry, age 602, B.Sc., joined family business of ship breaking, in Mumbai, in 1969 after completing his graduation. Mr. Kunal Chaudhry, age 24, BMS from Mumbai University, has also recently joined the firm as its Principal Officer and is assisting the Partners in his capacity as a professional.
Brief description of the Industrial Activity
Existing:	The Partnership Firm was promoted with a view to manufacture steel based items. Earlier the Firm had set up manufacturing facilities at Thane, but later had to discontinue the activities there due to the continuation of Octroi Duty. The Firm manufactured Structural steel in the form of MS Angles, Channels and Beams for a very long time. In fact Chaudhry and Company at their unit at Thane was one of the first Rolling Mills in the Western region to manufacture Beams. In 2007-08, the Partnership Firm disposed off the land at Thane where the earlier factory was set up and used the funds for its new project at Wada.
Proposed:	With their earlier exposure to, and familiarity with the activity, and on the confidence gained by the success of M/s. Kunal Ispat and Allied Industries Limited’s newly setup facilities for manufacturing T.M.T. bars, they decided to consolidate their foothold in the industry offered by the growing economy, which is expected to sustain this growth for long time. The Firm has accordingly set up new facilities, at Village Magatyhane, Taluka Wada, District Thane, Maharashtra, nearly 80 kms. Form Mumbai for manufacturing rolled steel items. These facilities, costing over Rs. 80.000 Millions, have a capacity, on one shift basis, to roll 36000 MT steel p.a. The firm is expected to benefit from experience, expertise and contacts of the Patners; so also, from low capital costs of the plant.
How the activity was financed so far (To be filled up in case of existing unit only.):	Earlier activities of the Firm were, and the cost of setting up of the project was financed by the Partners. The erection of the factory was possible because of the sale proceeds of the Factory Land at Thane.

Past Performance ( in case of existing units)

Particulars	Last Year	Last but one year	Last but two years
Turnover	Nil	0.03	0.03
Net Profit	Nil	0.02	0.01
Retained Profit	Nil	0.02	0.01

Monthly Turnover for the last twelve months:

In the last couple of years, the Firm had kept its activities on low key considering that manufacturing and marketing steel/ scrap was not a viable proposition. It therefore decided to wait for change in the fortunes of the industry. At present, there was no other activity carried on by the Firm except setting up the new projects.

Management:

Mr. Mukesh Chaudhry, as its Principal and active Partner, is looking after overall management of the Firm. He is assisted by Mr. Hemant Chaudhry, his nephew, also a partner in the Firm and Mr. Kunal, his son. At present, the latter are associated with setting up of the plant and are stationed at Wada. Both Hemant and Kunal would be in-charge of commercial operations, looking after marketing, sales and purchases. A well-qualified team of technicians is already identified by the promoters. These professionals are extending technical assistance for erecting, commissioning the plant. They would also provide their expertise in stabilizing production once the plant has commenced operations. The firm will also recruit senor technicians who would be responsible for production – both, quality and quantity. It has also formed a technical team; it would be the responsibility of this team to commission the plant, introduce new processes in production and develop new production items. Taking into consideration factors such as size of oprations, also needed for self reliance, the Firm plans to strike a balance between outsourcing and own infrastructure for providing specialized services.

SHARE HOLDING

Please provide a list of shareholders under the head

Partnership share	Name of partner	% holding
(Owing or controlling 5% or more of equity shares, indication the amount owned and business relationship, if any, with the Company )	Mukesh Chaduhry, Karta	40 %
	Hemant Chaudhry	30 %
	Sarita Chaudhry	30 %
	Total	100 %

Employment	Present	Proposed
Executives	N.A.	6
Supervisory	N.A.	4
Administrative / Office staff	N.A.	4
Skilled Labour	N.A.	12
Unskilled Labour	N.A.	70
Others [Specify]	N.A.	20

Eventually, the Firm plans to have / recruit : Foreman 1, Fitters 4, Turners 6, Helpers 12, Shift Supervisor 1, Electrician 2, Welders 2, Lohar 1, Weighing scale operator 2. There would be other like accountant, security and menial staff.

Particulars of existing key technical and executive staff. Two members of Chaudhry family and a Foreman appointed by the Firm, with assistance from the Technical Consultants, are executing the laying down norms for production, quality, consumption, wastage, etc. the Company has identified persons for above positions, who would join a few days before starting production.

Name of the product [s] including by-products and its [their use

The promoters have retained services of Ranjit Desai and Associates as consultants. They have submitted a report which covers areas such as capacity configuration, products range, manufacturing, process, machinery combination, layout planning utility support, etc. The Consultants would also extend technical assistance for erecting, commissioning and stabilizing production. Besides, the Firm would retain services of suitable technical staff for assisting in setting up, commissioning and operating the plant – it has already identified qualified look after various aspects of functional and operational management. They would plan for a support system to set production standards, deliver on quality, time schedule and price.

Name of the products including by products and its [their use

Demand for steel rolled items is generated on a major scale in construction activity and heavy engineering goods industry – mainly in

1. Structural Steel is the backbone of the Fabrication industry

2. Real estate development – hosing, industrial establishments

3. Infrastructure development – roads, railways, ports, airports, power and telecommunication

4. Raw Material for other Industries – Like Automobile Industries, Mechanical industries

Name of the products including by – products and its [their] use

To start with the Firm plans to manufacture M.S. Beams, M.S. Angles, M. S. Rounds, M. S. Flats.

Manufacturing Process

The Manufacturer process is as under

Raw Material [ingots and billets]

|

Cut length wise as per requirements

|

Pushed in furnace

|

Heated up to 12000 C

|

Roughing Mills

|

Intermediate Mill

|

Finishing Mill

|

Cooling bed

|

Cutting on heavy presses as per required length

|

Stacking in straight length

|

Lot size wise and dispatch

1. Ingot / Billet is heated at 1100 cg in furnace
2. It is transferred / moved through a 12’ length conveyor t stand No. 1
3. Ingot is reduced by passing through four passes to the required size / elongation
4. The process is repeated on stand no. 2,3,4 and 5
5. stand No. 6 and 7 are controlled by double drive motor @ 280 rpm along with support of chilled alloy steel rolls.
6. final shape and finishing is attained in stand No. 6 and 7. At this juncture, shape is given to the rolled material through pre heated die – angles, channels, bars and flats.

Cooling bed – next conveyor takes the material to cutting stand for cutting it into different lengths

No. of working days in the month : 25 days – i.e.300 days p.a.

No. of shifts in a day One shift of 10 hours.

• Transporting raw materials is not considered a difficulty as the unit is located close to ingot supplying units.
• The place is well connected by road to major user centers like Mumbai, New Mumbai, Nashik, Pune, etc and other parts of Western Maharashtra and Gujarat
• Necessary infrastructure facilities like power, water are available at the plant etc.
• Skilled, semi – skilled and unskilled labour would be available without much difficulty.

Note : The factory land is located in D zone backward are. As such, availability of power would be at a reasonable rate.

	Existing		Proposed
	Area	Value	Area	Value
Factory Land	5.5 acres	0.35	--	--
Factory Building	--	--	40560 sq.ft.	0.50
Ancillary Building	--	--	--	N.A.
Open Storage Space	--	--	--	--

Arrangements made for erection and commissioning of the plant

Erection work is nearing completion. Most of the erection has been completed, only some of the electrical work which has to be generally done at the final leg is being done now. The plant will be fully ready for production by mid May 2008. The internal team of technicians and he technical consultants are working together for completing the erection and commencing production by the scheduled date.

Necessity and purpose for the proposed investment addition to factory premises / machinery for achievement of the anticipated turnover

The company can generate a turnover of more than Rs. 10.000 Millions p.a. at present price, on single shift basis, at its maximum capacity unitization.

RAW MATERIALS AND COMPONENTS

Name Brief Description of the items

	Annual qty.	Cost per MT
Indigenous ISI 2830 standard	Given Below	Rs. 28000 + Excise

Raw Material would be available from local ingots manufacturers; so also, from manufacturers at Silvassa, Wada, Khopoli and Murbad i.e. at close distance from the plant. MS Billet will be procured from manufacturers from Raipur, Jharsugda [Orissa] and from other main producers like TATA, SAIL, RINL

There are no restrictions either on manufacturing, distribution or price of rolled steel items.

Domestic raw material price
Ingot	Rs. Pmt	28000
Local raw material cost		2008-09	2009-10	2010-11
Ingot cost	28000	77.60	83.10	93.37

Imported raw material : It is not envisaged to use imported raw material

UTILITIES

Power

The Firm has applied for a 1700 KVA connection.

A main power line is very close to the site and a MSEB sub 0 station is located nearby. Power supply is continuous and quality of supply is also good. It is therefore not considered necessary to have a generation se for emergency supply in case of breakdown, load shedding, etc.

Water

Requirement of water for manufacturing – cooling, drinking, hygienic purpose and humidification would be met from tube well dug at site. There is no need to treat water for manufacturing process.

	No of upmt	No of days	Cost per	Total
			Unit / ltr Rs.	Cost
Electricity [Units]	90			2268000	2316600	2548260
Unit cost	6			1.36	1.39	1.53
Fuel oil. No of liters	12	Liters		302400	308880	339768
	27			0.82	0.83	0.92
Coal	85			2142000	2187900	2106690
				1.01	1.03	1.13
				3.18	3.25	3.58
Wages	200			0.47	0.55	0.62
Salary	80			0.21	0.24	0.28
Maintenance	100			0.48	0.55	0.62

QUALITY CONTROL

The Firm would keep constant check on production for physical / manual, mostly online, quality control. Moreover, the machines have built in quality control checks. It is necessary to ensure carbon percentage and tensile strength is at acceptable level; this has to be done on hourly basis by physical checking at ‘in-house’ laboratory. Provision of laboratory equipment measuring stencil strength and monitoring carbon is made.

Particulars of R & D activity proposed

To begin with, it is proposed to set up a quality control dept. this would be eventually expanded, in scope, to attend to R & D functions.

ECONOMIC FEASIBILITY

The products is not reserved exclusively for SSI sector.

There is a ready, wide, and expanding market for the products. Products are generally marketed through middlemen or directly to heavy engineering goods industry, construction contractors, wholesalers and retailers.

Demand for the products is growing; but, demand for individual manufacturer depends on the consideration of quality and prices. The end customers would be dealers and heavy engineering goods industries, all types of fabricators, construction contractors.

Mostly South Gujarat, Western Maharashtra and Goa.

In price and quality, how does he unit’s product compare with those of its competitors	Price is generally determined by market forces.
Is the unit selling direct to its customers? If so, please furnish details like sales force showrooms, depots, etc.	The Promoters were earlier in manufacturing and marketing. This experience, coupled with sustainable booming market, is expected to help the Firm in marketing its products.
If a selling distributing agency has been appointed It’s name, period of contract, commission payable, period by which he bills will be paid by it, etc.	The Firm plans to also avail services of middlemen in the market. They are free lancers and make available there services to reliable suppliers. In this trade, for the reasons given above, there is no practice of entering into contract for marketing products.
Nature and volume of orders / enquiries on hand	There is a ready and growing market for the product.

COST OF PROJECT

Cost of project	Already spent	To be spent	Total [Rs in Millions]
Fixed Assets	4875.600	2500	7375.600
Current Assets	1849.000	00.0	1849.000
Investments	41.500		41.500
Pre-operative Expenses	130.900	00.0	130.900
Margin money for WC	00.000	3527.800	3527.800
Total	6897.000	6027.800	12924.800

MEANS OF FINANCING

Cost of project	Already spent	To be spent	Total [Rs in Millions]
Capital	6594.600	3777.800	10372.400
Current Liabilities	[632.000]	0.000	[632.000]
Loans [Liabilities]	934.400	1250.000	2184.400
Term Loan from Bank	0.000	1000.000	1000.000
Total	6897.000	6027.800	12924.800

Indicate sources form which expenditure already incurred has been financed

The project is implemented from the funds made available b he promoters after selling the property of the Firm located at Thane MIDC.

Promoter’s contribution to the project as % of the total cost : 100 %

Primary

Cash Credit : Hypothecation of Firm’s entire current assets consisting of stock of raw materials, stock in process, finished goods, and other inventories, book debts / receivable etc.

Cash Credit	Proposed %
Raw Material	25.00
Stock in Process	40.00
Finished Goods	33.33
Receivable / Book debts Cover period for Book Debts – 60 days	50.00

Collateral [Full details]

A first charge, by way of Hypothecation charge over the Plant and Machinery of the Firm – Present value around more than Rs. 62.000 Millions

A first charge by way of deposit of title deeds of the land and factory building of the Firm at Village Magathane, Tal. Thane, Maharashtra – present value more than Rs. 12.500 Millions

Details of guarantor

Name : Net worth

Mr. Mukesh Chaudhry Rs. 39.800 Millions

Mrs. Sarita Chaudhry Rs. 13.200 Millions

Mr. Hemant Chaudhry Rs. 18.000 Millions

Details of any similar guarantee, if any, give to other institutions	Mr. Mukesh Chaudhry has given guarantees to the bankers of Trilok Shipbreakers Limited, Chaudhry and Chaudhry Steel and Alloys Limited, who have sanctioned limits to these sister concerns. Mr. Hemant Chaudhry has given guarantees to the bankers of Chaudhry Steel and Alloys Limited These are sister concerns and enjoy facilities from their bankers.
Details of pending litigation, if any, against and by the concerns.	There are no legal proceeding against the concern which would have any material impact on the fortunes of the Firm

ASSUMPTIONS FOR THE PROJECT

• Installed capacity of quality 26000 per year

• Utilised capacity is taken 70 % for the first year and after that it would increase by 10 %

• Working is based on Single Shift for 25 working days.

• Power calculated at 90 units per ton @ Rs. 6/- i.e. Rs. 540/-

• Fuel is calculated as follows

Coal = 85 Kgs / MT Multiplied by Rs. 4700/- per MT i.e. Rs. 400 per MT

Furnace Oil = 12 Liters / MT @ 27/Ton i.e. Rs. 324 per MT

---------------------

724 per MT

• Labour Contractor payments includes wages. It as fixed at Rs. 190/- per MT

• Administrative Expenses is the Salary paid to the managerial level staff o the Firm
• Administrative Expenses calculated @ 85/- per ton
• The brokerage is calculated Rs. 100/-

• Purchases includes Local Purchases 50 % and OMS Purchases 50 %

• Burning Loss is calculated @ 2 %. It is not shown separately as an additional cost
• It is adjusted in the quantity purchased.

• Rolls of Approximately 2 Crore purchased not include. To be considered as margin against Working Capital

• Sales is calculated by multiplication of Cost of Finished Goods per MT by annual Quantity of Goods manufactured.

• Salary includes PF @ 12 %

• Staff salary includes Remuneration to Managing and Executive Directors, Administrative and Financial Managers, Personnel Managers and Assistant and other Staff’.

• Factory staff includes Workers, Supervisors, Administrative and Quality Control Staff

• The provision for tax is made at 30 %

• The Costing of Direct Costs and the Administrative Expenses is done on the Quality manufactured.

Details of Associate Concerns of Choudhry and Company

Name of the Unit	Kunal Ispat and Allied Industries Limited
Constitution	A closely held Company
Address Registered address / factory	32, Quay Street, New Darukhana, Mumbai – 400010
Corporate office Work site	201, Kapadia Apartments, S. V. Road, Vile Parle [West], Mumbai – 400056
Name of Directors / partners / proprietor	Mr. Dinesh Chaudhry Mrs. Uma Chaudhry Mr. Kunal Chaudhry
Nature of association with the Applicant unit	An associate concern
Date of establishment / Incorporation	25^th July, 1986
Nature of activity	Manufacturing TMT bars
Assets classification	Standard

Financial position as obtained from financial statements as on a recent date :

Rs in millions

As on March 31	31.03.2008 [Provisional]	31.03.2007
Sales / Income	619.373	71.838
Profit [after tax] / [Loss]	4.129	[0.714]
Tangible Net Worth	9.593	9.593
Deferred Liabilities	1.842	1.842
Total Outside Liabilities	89.349	95.216
Investments	1.050	1.040
Block Assets [Net]	38.784	42.302

Details of borrowing arrangement with Banks and Financial Institutions

Name and Address of Banks	Corporation Bank, Khar Branch, Mumbai
Details of credits facilities	CC Limit Rs. 53.000 Millions Utilised : Rs. 53.000 Millions
Conducts of Account	Satisfactory
When last renewed [If with the bank]	January 2008

FIXED ASSETS

• CIDCO Land [Warehouse]
• Disma
• Electricals
• Factory Land
• Furnace and Refractory
• Furniture and Fixture
• Ghaziabad Land
• New Machinery
• Plant and Machinery
• Pre-operative Expenses
• Roll
• Shed and Building
• Stores
• Transportation

Details of Associate Concerns of Choudhry and Company

Name of the Unit	Chaudhry and Chaudhry Shipbreakers Private Limited
Constitution	A closely held Company
Address Registered address / factory	201, Kapadia Apartments, S. V. Road, Vile Parle [West], Mumbai – 400056
Corporate office Work site	201, Kapadia Apartments, S. V. Road, Vile Parle [West], Mumbai – 400056
Name of Directors / partners / proprietor	Mr. Mukesh Chaudhry Mrs. Sarita Chaudhry
Nature of association with the Applicant unit	An associate concern
Date of establishment / Incorporation	25^th February, 1984
Nature of activity	Shipbreaking
Assets classification	Standard

Financial position as obtained from financial statements as on a recent date :

Rs in millions

As on March 31	31.03.2004	31.03.2005
Sales / Income	30.310	0.858
Profit [after tax] / [Loss]	0.205	[1.137]
Tangible Net Worth	26.332	25.195
Deferred Liabilities	2.709	2.814
Total Outside Liabilities	3.375	3.159
Block Assets [Net]	4.829	4.744
Current Ratio	2.833	6.831
TOL/TNW ratio	0.013	0.013

Details of borrowing arrangement with Banks and Financial Institutions

Name and Address of Banks	Corporation Bank, Bhavnagar Branch, Mumbai
Details of credits facilities	CC Limit Rs. 180.000 Millions
Conducts of Account	Satisfactory
When last renewed [If with the bank]	July 2006

Details of Associate Concerns of Choudhry and Company

Name of the Unit	Chaudhry Steel and Alloys Limited
Constitution	A closely held Company
Address Registered address / factory	201, Kapadia Apartments, S. V. Road, Vile Parle [West], Mumbai – 400056
Corporate office Work site	Mamsa Industrial Estate, Mamsa, Bhavnagar, Gujarat
Name of Directors / partners / proprietor	Mr. Mukesh Chaudhry Mrs. Sarita Chaudhry Mr. Hemant Chaudhry
Nature of association with the Applicant unit	An associate concern
Date of establishment / Incorporation	7^th September 1981
Nature of activity	Onion dehydration
Assets classification	Standard

Financial position as obtained from financial statements as on a recent date :

Rs in millions

As on March 31	31.03.2008 [Provisional]	31.03.2007
Sales / Income	1.058	19.177
Profit [after tax] / [Loss]	[0.549]	0.029
Tangible Net Worth	12.249	12.279
Deferred Liabilities	9.323	19.910
Total Outside Liabilities	11.295	20.735
Block Assets [Net]	6.238	8.335
Current Ratio	2.917	0.847
TOL/TNW ratio	0.092	0.168

Details of borrowing arrangement with Banks and Financial Institutions

Name and Address of Banks	Corporation Bank, Bhavnagar Branch, Mumbai
Details of credits facilities	CC Limit Rs. 7.500 Millions
Conducts of Account	Satisfactory
When last renewed [If with the bank]	2005-2006

Corporation Bank

STATEMENT OF ASSETS AND LIABILITIES

Details of Assets Owned : Mr. Hemant Chaudhry

Investment in Business Capital :

Name of the company, firm, concern in which investment is made	Amount invested [Rs in Millions]
Chjaudhry and Chjaudhry Shipbreakers	0.200
Chjaudhry Steel and Alloys Limited	1.355
Trilok Shipbreakers Limited	0.247
Others Share Investment	0.383
Total	2.185

Deposits held with Banks

Name of the Bank	Nature of deposit	Amount of deposits [Rs in Millions]
Canara Bank, Mazgaon Branch	Savings Account	0.023

Deposits held with Companies / Others

Name of the company	Nature of deposit	Amount of deposits
Chawla Steel Rolling Mill	Unsecured Deposit	0.460
Dinesh Chaudhry	Do	2.930
Indu Kejriwal	Do	0.060
Kamladevi Chaudhry Family Trust	Do	0.008
Kunal Ispat and Allied Industries Limited	Do	0.325
Prerna Chaudhry	Do	0.006
Total		3.789

Life Insurance Policies

Date of Policy	Policy No.	Sum assured	Surrender Value
27.03.2008	893592129	0.050	27.03.2021
24.03.2008	893592097	0.100	24.03.2021

Immovable Properties

Name of the owner	Description of property	Location, address	Extent of land
Joint owner with Mr. Kunal Chaudhry	Open plot – Purchase value Rs. 3.032 Millions MV Rs. 50.000 Millions 50 % share of Rs. 50.000 Millions = Rs. 25.000 Millions	Varaccha Road, Surat	About 1600 mtrs

Other Assets

Description of security	Market value as on 31.03.2006
Jewellery	Rs. 0.668 Millions
Cash	Rs. 0.018 Millions

Total Assets : Rs. 31.833 Millions

LIABILITIES

Borrowing from others

Name of lender Amount borrowed	Details of securities furnished present market	Detail of encumbrances, if any, on the property
Chaudhry Steel and Alloys Limited	1.202	Unsecured
Kamladevi Chaudhry	0.050	Unsecured
Kunal Chaudhry	0.014	Unsecured
Sarita Chaudhry	0.101	Unsecured
Trilok Shipbreakers Limited	0.447	Unsecured
Trilokchand Chaudhry Family Trust	0.685	Unsecured
Uma Chaudhry	0.115	Unsecured
GD Sons Credit and Investment	0.050	Unsecured
Total	2.664

Total Liabilities : Rs. 2.664 Millions

Net Worth : Rs. 29.169 Millions

Name of he principal debtors on whose behalf guarantee is furnished.	Extent to which guarantee is furnished [Rs in Millions]	Name of the creditor
Chaudhry Steel and Alloys Limited	Corporation Bank, Bhavnagar Branch, Gujarat	CC Limit Rs. 7.500 millions Utilised : Nil MTL Rs. 0.700 Millions

Corporation Bank

STATEMENT OF ASSETS AND LIABILITIES

Details of Assets Owned : Mrs. Sarita Chaudhry

Investment in Business Capital :

Name of the company, firm, concern in which investment is made	Amount invested [Rs in Millions]
Investment in listed, tradable shares	2.087
Total	2.087

Deposits held with Banks

Name of the Bank	Nature of deposit	Amount of deposits [Rs in Millions]
Canara Bank, Mazgaon Branch	Savings Account	0.014
HDFC Bank, Juhu Scheme	Savings Account	0.007
Total		0.021

Deposits held with Companies / Others

Name of the company	Nature of deposit	Amount of deposits [Rs in Millions]
Hemant Chaudhry	Unsecured Deposit	0.101
Chaudhry and Chaudhry Shipbreakers	Do	1.570
Chawla Steel Rolling Mill	Do	0.375
Kunal Chaudhry	Do	0.359
Mukesh Chaudhry	Do	0.120
Prerna Chaudhry	Do	0.250
Radhika Chaudhry	Do	0.144
Umadevi Chaudhry	Do	0.380
Others	Do	0.246
Total		3.545

Life Insurance Policies

Date of Policy	Policy No.	Whether Endowment policy or whole life policy	Sum assured	Surrender Value
27.03.2008	893591893	Mutual Fund	5000.000	27.02.2013
24.03.2008	893592096	Mutual Fund	5000.000	24.03.2013

Other Assets

Description of security	Market value as on 31.03.2006
Jewellery	0.457
SBI PPF	0.410
Cash	0.327
Total	1.194

Total Assets : Rs. 15.712 Millions

LIABILITIES

Name of the institution, bank	Nature of credit facility	Extent	Details of securities furnished
HDFC Bank	Loan against shares	0.248	Shares

Borrowing from others

Name of lender Amount borrowed	Details of securities furnished present market	Detail of encumbrances, if any, on the property
Chaudhry and Company	0.521	Unsecured
Dinesh Chaudhry	0.847	Unsecured
Others	0.230	Unsecured
Total	1.598

Total Liabilities Rs 1.846 Millions

Net Worth : Rs. 13.247 Millions

Corporation Bank

STATEMENT OF ASSETS AND LIABILITIES

Details of Assets Owned : Mr. Mukesh Chaudhry

Investment in Business Capital :

Name of the company, firm, concern in which investment is made	Amount invested [Rs in Millions]
Chjaudhry and Chjaudhry Shipbreakers Limited	0.100
Trilok Shipbreakers Limited	0.070
Chjaudhry Steel and Alloys Limited	0.033
Others Share Investment	1.809
Total	2.012

Deposits held with Banks

Name of the Bank	Nature of deposit	Amount of deposits [Rs in Millions]
Canara Bank, Mazgaon Branch	Savings Account	0.002
HDFC Bank, Juhu Scheme	Savings Account	0.009
Total		0.011

Deposits held with Companies / Others

Name of the company	Nature of deposit	Amount of deposits [Rs in Millions]
Chaudhry and Company	Unsecured Deposit	6.602
Dinesh Chaudhry	Do	1.301
Trilok Shipbreakers Limited	Do	0.345
Trilokchand Chaudhry Family Trust	Do	2.927
Chaudhry and Chaudhry Shipbreakers	Do	1.153
Indu Kejriwal	Do	0.300
Others	Do	1.975
Total		14.603

Life Insurance Policies

Date of Policy	Policy No.	Sum assured	Surrender Value
28.03.2008	893592163	0.100	28.02.2013

Immovable Properties

Name of the owner	Description of property	Location Address	Extent of land
Mukesh Chaudhry	Agricultural Land MV Rs. 10.000 Millions	Chiple, Maharashtra	1 acre
Joint owner with Shri. Dinesh Chaudhry	Land and Building MV Rs. 20.000 Millions ½ share Rs. 10.000 Millions	Kavi Nagar, Ghaziabad, Uttar Pradesh
Mukesh Chaudhry	Land at Wada, About 6 acres, MV Rs. 4.800 Millions	Wada, Village Magathane Taluka Wada	About 6 acres
Total	Rs. 24.800 Millions

National Savings Certificates / shares of listed companies units of Unit Trust of India

Description of security	Market value as on 31.03.2008
State bank of India, PPF	0.321

Other Assets

Description of security	Market value as on 31.03.2008
Jewellery	0.514
Debenture Investment	0.024
Silverware	0.057
Cash	0.408
Others	0.280
Total	1.283

Total Assets : Rs. 43.130 Millions

LIABILITIES

Name of the institution, bank	Nature of credit facility	Extent
HDFC Bank	Loan against shares	0.500

Borrowing from others

Name of lender Amount borrowed	Details of securities furnished present market	Detail of encumbrances, if any, on the property
Chaudhry Stel and Alloys Limited	1.368	Unsecured
Radhika Chaudhry	0.673	Unsecured
Kamladevi Chaudhry	0.268	Unsecured
Others	0.542	Unsecured
Total	2.851

Total Liabilities Rs 3.351 Millions

Net Worth : Rs. 39.779 Millions

PRODUCTION PER 8 HOURS

Particulars				2008-09	2009-10	2010-11	2011-12	2012-13
Capacity	mtpa		0	36000	36000	36000	36000	36000
No. of machines			0	0	0	0	0	0
No. of shifts of 12 hours each			1	1	1	1	1	1
No. of months			1	12	12	12	12	12
Installed Capacity / annum	Mtrs.p.a. 0	0	Mtpa p.a. 0	Mtpa p.a. 36000	Mtpa p.a. 36000	Mtpa p.a. 36000	Mtpa p.a. 36000	Mtpa p.a. 36000
Installed Capacity / annum - product	Product Mix		M.T.p.a.	M.T.p.a.	M.T.p.a.	M.T.p.a.	M.T.p.a.	M.T.p.a.
Rolled items	100 %	100 %	0	36000	36000	36000	36000	36000
	100 %		0	36000	36000	36000	36000	36000
Capacity utilization			100 %	70 %	80 %	90 %	100 %	100 %
Prominent products
Rolled items			0	25200	28800	32400	36000	36000
Total			0	25200	28800	32400	36000	36000
PARTICULARS				No of months 12	No of months 12	No of months 12	No of months 12	No of months 12
Quantiry manufactured				25200	28800	32400	36000	36000
Rolled items
				25200	28800	32400	36000	36000
Op. S. finished goods				0	1800	2057	2314	2571
Cl. S. of finished goods				1800	2057	2314	2571	2571
Stock available for sale				25200	30600	34457	38314	38571
Quantity Sole				23400	28543	32143	35743	36000
	Rs. Pmt			2008-09	2009-10	2010-11	2011-12	2012-13
Sale	31800			744.120	907.667	1022.147	1136.627	1144.800
				744.120	907.667	1022.147	1136.627	1144.800
Particulars	Burning loss
Opening Stock of Raw Material	102.00 %			0	2000	2286	2572	2857
Quantity Purchased				27714	29676	33347	37020	36735
				27714	31676	35633	39592	39592
Quantity Consumed				25714	29390	33061	36735	36735
Closing Stock				2000	2286	2572	2857	2857
Purchases	Rs. Pmt			2008-09	2009-10	2010-11	2011-12	2012-13
	28000			775.992	830.928	933.716	1036.560	1028.580
				775.992	830.928	933.716	1036.560	1028.580

CONSUMPTION OF POWER AND FUEL AT MAXIMUM CAPACITY UTILIZATION

	Rates			Total Cost
Electricity [Units]	90	Units	Total units	2268000	2592000	2916000	3240000	3240000
Unit cost	6	Per unit		136.08	155.52	174.96	194.40	194.40
Fuel Oil No of Iiters	12	Liters	Total Liters	302400	345600	388800	432000	432000
Rate	27	Per liter		81.65	93.31	104.98	116.64	116.64
Coal	85	Kgs	Total coal	2142000	2448000	2754000	3060000	3060000
Rate	4.7	Per kg		100.67	115.06	129.44	143.82	143.82
				318.40	363.89	409.37	454.86	454.86
	Rate per MT
Wages	190			47.88	54.72	61.56	68.40	68.40
Salary	85			21.42	24.48	27.54	30.60	30.60
Maintenance	90			22.68	25.92	29.16	32.40	32.40
Store Rolls	190			47.88	54.72	61.56	68.4	68.4

PROJECTED

[Rs in Millions]

Particulars	2008-09	2009-10	2010-11	2011-12	2012-13
Local Sales
Installed Capacity	36000	36000	36000	36000	36000
Utilised Capacity	70.00 %	80.00 %	90.00 %	100.00 %	100.00 %
Quantity [Sold Excl. Fin Cl. Stk.]	23400	28543	32143	35743	36000
Sales Value	744.120	907.667	1022.147	1136.627	1144.800
TOTAL SALES	744.120	907.667	1022.147	1136.627	1144.800

PROJECTED PURCH

[Rs in Millions]

Particulars	2008-09	2009-10	2010-11	2011-12	2012-13
Purchases
Quantity Purchased	27714	29676	33347	37020	36735
Total purchases	775.992	830.928	933.716	1036.560	1028.580

TOTAL COST

[Rs in Millions]

Particulars	2008-09	2009-10	2010-11	2011-12	201-13
Power	13.608	15.552	17.496	19.440	19.440
Fuel	18.245	20.851	23.458	26.064	26.064
Labour – Contractor	4.788	5.472	6.156	6.840	6.840
Administrative Expenses	2.142	2.448	2.754	3.060	3.060
End Cutting @ 2.5 %	3.150	3.600	4.050	4.500	4.500
Maintenance	2.268	2.592	2.916	3.240	3.240
Stores Rolls	4.788	5.472	6.156	6.840	6.840
Brokerage	2.520	2.880	3.240	3.600	3.600
Interest	15.013	16.761	18.503	20.326	21.162

[Rs in Millions]

PARTICULARS	2008-09	2009-10	2010-11	2011-12	201-13
Raw Materials
Opening Stock	0	200.000	228.600	257.200	285.700
Add : Purchase Stock	2771.400	2967.600	3334.700	3702.000	3673.500
	2771.400	3167.600	3563.300	3959.200	3959.200
Less : Consumed	2571.400	2939.000	3306.100	3673.500	3673.500
Closing Stock [RM]	200.000	228.600	257.200	285.700	285.700
Finished Goods
Opening Stock	0.000	180.000	205.700	231400	257.100
Add : Manufactured	2520.000	2880.000	3240.000	3600.000	3600.000
QTY Available for Sale	2520.000	3060.000	3445.700	3831.400	3857.100
Less : Sold	2340.000	2854.300	3214.300	3574.300	3600.000
Closing Stock [FG]	180.000	205.700	231.400	257.100	257.100

COST OF THE PROJECT	Existing	Addition	Total
Fixed Assets	48.756	25.000	73.756
Current Assets	18.490	0.000	18.490
Investment	0.415	0.000	0.415
Pre-Operative Expenses [Pending Allocation]	1.309	0.000	1.309
Margin Money For W.C.	0.000	35.278	35.278
TOTAL	68.970	60.278	129.248
MEANS OF FINANCE
CAPITAL	65.946	37.778	103.724
Current Liabilities	[6.320]	0.000	[6.320]
Loan [Liabilities]	9.344	12.500	21.844
Term Loan from Bank	0.000	10.000	10.000
TOTAL	68.970	60.278	129.248

DEBT – SERVICES COVERAGE RATIO

Rs in Millions

PARTICULARS	2008-09	2009-10	2010-11	2011-12	2012-13
PROFIT
Add : Interest on Term Loan	1.259	1.044	0.797	0.514	0.193
Add : Depreciation	10.275	8.767	7.483	6.388	5.455
Add : Dividend		2.000	3.000	4.000	4.000
Add : Provision for Tax		1.496	2.064	2.654	4.148
Total	11.534	13.307	13.344	13.556	13.796
Installments	1.503	1.717	1.964	2.247	2.570
Add : Interest	1.259	1.044	0.797	0.514	0.193
Total	2.762	2.761	2.761	2.761	2.763
Ratio = A/B	4.18	4.82	4.83	4.91	4.99
Average Ratio	4.75

INTEREST COVERAGE RATIO

PARTICULARS	2008-09	2009-10	2010-11	2011-12	2012-13
NET PROFIT BEFORE	14.176	25.399	30.098	34.997	43.304
INTEREST AND TAX
INTEREST ON LONG TERM LOAN	1.259	1.044	0.797	0.514	0.193
INTEREST COVERAGE RATIO	11.26	24.33	37.76	68.09	224.37

OPERATING STATEMENT

Rs in Millions

Particulars	Provisional	Projected
	31.03.2009	31.03.2010	31.03.2011	31.03.2012	31.03.2013
GROSS SALES
Local Sales	744.120	907.667	1022.147	1136.627	1144.800
Export Sales	-	-	-	-	-
Total	744.120	907.667	1022.147	1136.627	1144.800
LESS EXCISE DUTY
Net sales	744.120	907.667	1022.147	1136.627	1144.800
% Age Rise [+]/[-] in Net sales as compared to Previous Year		2.198	1.261	1.120	0.072
Cost of Sales
Raw materials [including stores and other items used in manufacture]
Imported	--	--	--	--	--
Indigenous	775.992	830.928	933.716	1036.580	1028.580
Other Spares
Imported	--	--	--	--	--
Indigenous	--	--	--	--	--
Power and Fuel	31.853	36.403	40.954	45.504	45.504
Direct Labour	4.788	5.472	6.156	6.840	6.840
Other manufacturing Expenses	10.206	11.664	13.122	14.580	14.580
Depreciation	10.275	8.767	7.483	6.388	5.455
Sub Total	833.114	893.234	1001.431	1109.892	1100.959
Add : Opening stock work in progress	13.519	69.519	77.527	85.507	93.515
Sub Total	846.633	962.753	1078.958	1195.399	1194.474
Deduct : Closing work in Progress	69.519	77.527	85.507	93.515	93.515
COST OF PRODUCTION	777.114	885.226	993.451	1101.884	1100.959
Add : Opening Stock of Finished Goods	--	56.160	64.178	72.197	80.215
Sub Total	777.114	941.386	1057.629	1171.081	1181.174
Less : Closing Sock of Finished Goods	56.160	64.178	72.197	80.215	80.215
Sub Total [Cost of sales]	720.954	877.208	985.432	1093.866	1100.959
Selling General and Administrative Expenses	4.662	5.328	5.994	6.660	6.660
Sub Total	725.616	882.536	991.426	1100.526	1107.619
Operating Profit Before Interest	18.504	25.131	30.721	36.101	37.181
Interest	15.013	16.714	18.503	20.326	21.160
Operating Profit After Interest	3.491	8.417	12.218	15.775	16.021
Add : Other Non-Operating Income
Licence Premium
Other
Sub total [Income]
Deduct : Other Non – Operating Expenses
Licence Premium
Other
Sub Total [Expenses]
Net of other Non – Operating Income / Expenses
Profit Before Tax / Loss	3.491	8.417	12.218	15.775	16.021
Provision for Taxes	1.000	2.500	3.600	4.700	4.800
Net Profit / Loss	2.491	5.971	8.618	11.075	11.221
Equity Dividend Paid – Amount
Dividend Rate
Retained Profit	2.491	5.917	8.618	11.075	11.221
Retained Profit / Net Profit [%age]	100.00	100.00	100.00	100.00	100.00

ANALYSIS OF BALANCE SHEET

Rs in Millions

Particulars	Provisional	Projected
	31.03.2009	31.03.2010	31.03.2011	31.03.2012	31.03.2013
CURRENT LIABILITIES
01 Short – Term borrowings from banks [including bill purchased, discounted and excess borrowings placed on repayment basis]
From Applicant Bank	1.503	1.717	1.964	2.247	2.547
Working Capital Borrowing	105.800	120.952	136.140	152.491	161.286
[Of Which BP and BP]	--	--	--	--	--
Sub Total [A]	107.303	122.669	138.104	154.738	163.833
02 Short Term Borrowings from others	--	--	--	--	--
03 Sundry creditors [Trade]	--	--	--	----	--
04 Advance payments from customers  / Deposits from dealers	--	--	--	--	--
05 Provision for tax [net of Tax paid]	--	1.728	2.319	2.934	4.428
06 Dividend and Dividend Tax payable	--	--	--	--	--
07 other statutory liabilities [due within one year]	--	--	--	--	--
08 Deposits / Installments of term loans / DPGs / debentures, etc [due within one year]	--	--	--	--	--
09 Other current liabilities and provisions [due within one year]	--	--	--	--	--
Sub – Total [B]		1.728	2.319	2.934	4.428
Total Current Liabilities	107.303	124.397	140.423	157.672	168.261
10 TERM LIABILITIES [Total of 1 to 9]	--	--	--	--	--
11 Debentures [not maturing within one year]	--	--	--	--	--
12 Preference Shares [Redeemable after 1 year]	--	--	--	--	--
13 Term loans [excluding installments  payable within one year]	6.995	5.064	2.852	0.322	--
14 Deferred Sales Tax / Deferred Loan Deferred Payment Credit [Excluding installments due within one year]	--	--	--	--	--
15 Term deposit [repayable after one year]	--	--	--	--	--
16 other Term Liabilities	61.836	61.836	61.836	61.836	61.836
17 TOTAL TERM LIABILITIES [Total of 11 to 16]	68.831	66.900	64.688	62.158	61.836
18 TOTAL OUTSIDE LIABILITIES [10 + 17]	176.134	191.297	205.111	219.860	230.097
NET WORTH
19 Partner’s Capital Account	65.946	63.732	63.732	63.732	63.732
20 General Reserve	--	--	--	--	--
21 Revaluation Reserve	--	--	--	--	--
22 Other Reserves [Excluding provisions]	--	--	--	--	--
23 Surplus [+] or deficit [-] in Profit and Loss Account	2.491	8.408	17.026	28.101	39.322
Less : Drawings	--	--	--	--	--
24 NET WORTH [19+23]	66.223	72.140	80.758	91.833	103.054
25 TOTAL LIABILITIES [18+24]	242.357	263.437	285.869	311.663	333.151
CURRENT ASSETS
26 Cash and Bank Balance	37.060	47.474	59.005	72.776	99.549
27 Investments [Other than long term investments] Government and other Trustee securities	--	--	--	--	--
I] Fixed deposit with bank	0.415	0.415	0.415	0.415	0.415
II] Share with Co-operative Bank	--	--	--	--	--
28 I] Receivables other than deferred and exports [Including bills purchased and discounted by banks]	15.503	18.910	21.295	23.680	23.850
II] Export receivables [Including bills purchased / discounted by banks]
29 Instalments of Deferred  receivables [due within one year]	--	--	--	--	--
30 Inventory
I] Raw materials [Including stores and other items used in the process of manufacture]
Imported
Indigenous
II] Stock – in – process	69.519	77.527	85.507	93.515	93.515
II] Finished Goods	56.160	64.178	72.197	80.215	80.215
IV] Other consumable spares
Imported
Indigenous
31 Advances recordable in Cash or kind	--	--	--	--	--
32 Advance payment of taxes [NET]	--	--	--	--	--
33 Excise and Sales Tax Refund	--	--	--	--	--
Other current assets	0.219	0.219	0.219	0.219	0.219
34 TOTAL CURRENT ASSETS [Total of 26 to 33]	178.876	208.723	238.638	270.820	297.763
FIXED ASSETS	--	--	--	--	--
35 Gross Block	73.756	73.756	73.756	73.756	73.756
36. Depreciation to date	10.275	19.042	26.525	32.913	38.368
37 NET BLOCK [35-36]	63.481	54.714	47.231	40.843	35.388
OTHER NON – CURRENT ASSETS
38 Investments / book / debts / advances / deposits which are not Current Assts	--	--	--	--	--
I] [a] Others Investments in Subsidiary
[b] Others companies / affiliates
II] Advances to suppliers of capital goods and contractors
III} Deferred receivables [maturity exceeding one year]
IV] Others
39 Non consumables Stores and Spares	--	--	--	--	--
40 Other non – current assets including dues from directors	--	--	--	--	--
41 TOTAL OTHER NON – CURRENT ASSETS [total of 38 to 40]	--	--	--	--	--
42 Intangible assets [Patents, goodwill, prelim, expenses, bad / doubtful debts Not provided for etc.]	--	--	--	--	--
TOTAL ASSETS [Total of 34, 37, 41 and 42]	242.357	263.437	285.869	311.663	333.151
TANGIBLE NET WORTH [24-42]	42.349	48.266	56.884	67.959	79.180
NET WORKING CAPITAL [(17+24)-(37+41+42)]	71.573	84.326	98.215	113.148	129.502
Current Ratio [34/10]	0.167	0.168	0.170	0.172	0.177
Total Outside Liability / Tangible Net Worth [18/44]	0.472	0.446	0.403	0.359	0.321
Additional Information

MINIMUM PERMISSIBLE BANK FINANCE

Rs in Millions

Particulars	Provisional	Projected
	31.03.2009	31.03.2010	31.03.2011	31.03.2012	31.03.2013
1. Total Current Assets	178.876	208.723	238.638	270.820	297.763
2. Other Current Liabilities [Other Than Bank Borrowing]	--	1.728	2.319	2.934	4.428
3. Working Capital Gap	178.876	206.995	236.319	267.886	293.335
4. Minimum Stipulated Net Working Capital [25 % of Total Current Assets Excluding Export Receivables]	44.719	52.181	59.660	67.705	74.441
5. Actual / Projected Net Working Capital	71.573	84.326	98.215	113.148	129.502
6. [Item3- Item4]	134.157	154.814	176.659	200.181	218.894
7. [Item3- Item5]	107.303	122.669	138.104	154.738	163.833
8. Maximum Permission Bank Finance [Lower of 6 to 7]	107.303	122.669	138.104	154.738	163.833
AS PER NAYAK COMMITTEE
1. Projected Turnover	744.120	907.667	1022.147	1136.627	1144.800
2. Net Working Capital Assets	178.876	208.723	238.638	270.820	297.763
3. Acceptable Sale	744.120	907.667	1022.147	1136.627	1144.800
4. 25 % of Acceptable Sale	186.030	226.917	255.537	284.157	286.200
5. Margin 5 % of Sale	37.206	45.383	51.107	56.831	57.240
6. Available Margin [2-5]	141.670	163.340	187.531	213.989	240.523
7. 4-5	148.824	181.534	204.430	227.326	228.960
8. 4-6	44.360	63.577	68.006	70.168	45.677
9. MPBF [7 or 8 whichever is higher]	147.724	181.534	204.430	227.326	228.960
Calculation of Drawing Power at 31.03.2009	Bank Finance
1. Raw Material
Stock in Process	69.519	--	--	--	--
Finished Goods	56.160	--	--	--	--
Other Consumable Spares	--
Receivables	15.503	--	--	--	--
Total	141.182	--	--	--	--
2. Creditor for Purchases	--
3. Paid Stock (1[Cost] -2)	141.182	--	--	--	--
4. Advance Value [1 (Cost after Margin)-2]	141.182	--	--	--	--
5. Limit Sanctioned	--

FUND FLOW STATEMENT

Rs in millions

Particulars	Provisional	Projected
	31.03.2009	31.03.2010	31.03.2011	31.03.2012	31.03.2013
SOURCES
[a] Net Profit [after tax]	2.491	5.917	8.618	11.075	11.221
[b] Depreciation	10.275	8.767	7.483	6.388	5.455
[c] Increase in [i] Partner’s Capital	37.778	--	--	--	--
[d] Increase in Term Liabilities, Including in Public Depositors	83.361	--	--	--	--
[e] Decrease in
[i] Fixed Assets
[ii]Other Non-Current Assets	1.39	--	--	--	--
Others	--	--	11.111	12.231	12.860
Total	135.214	14.684	27.212	29.694	50.536
2 USES [a] Net Loss
[b] Decrease in Term Liabilities [Including A Closely Held Public Limited Liability Company Deposits]		1.931	2.212	2.530	0.322
[c] Increase in
Other Non Current Assets
Fixed Assets [Net]	25.00	25.000	--	--	--
[d] Dividend	--	--	--	--	--
[e] Others	42.808	--	--	--	--
[f] Total	67.808	26.931	2.212	2.530	0.322
3 Long – Term Surplus [+] / Deficit [-] [Item 1 minus Item 2]	67.406	[12.247]	25.000	27.164	50.214
4 Increase / Decrease in Current Assets [As per details given below]	159.971	29.847	29.915	32.182	26.943
5 Increase / Decrease in Current Liabilities other than bank borrowings.	6.320	1.728	0.591	0.615	1.494
6 Increase / Decrease in Working Capital Gap	153.651	28.119	29.324	31.567	25.449
7 Net Surplus [+] / Deficit [-] [Difference of 3 & 6]	[86.245]	[40.366]	[4.324]	[4.403]	24.765
8 Increase / Decrease in Bank Borrowings	107.303	15.366	15.435	16.634	9.095
9 INCREASE / DECREASE IN NET SALES	744.120	163.547	114.480	114.480	8.173
BREAK UP OF [4]
[i] Increase / Decrease in raw Materials	--	--	--	--	--
[ii] Increase / Decrease stock – in – process	56.000	8.008	7.980	8.008	--
[iii] Increase / Decrease in Finished goods	56.160	8.018	8.019	8.018
[i] Increase / Decrease in Receivables
[a] Domestic	15.583	3.407	2.385	2.385	0.170
[b] Exports	--	--	--	--	--
[v] Increase / Decrease in Store and Spares	--	--	--	--	--
[vi] Increase / Decrease in other Current Assets	32.228	10.414	11.531	13.771	26.773
Total	159.971	29.847	29.915	32.182	26.943

RATIO

Particulars	Provisional	Projected
	31.03.2009	31.03.2010	31.03.2011	31.03.2012	31.03.2013
Performance / Financial Ratio
Liquidity Ratios
a) Current Ratio	1.67	1.68	1.70	1.72	1.77
b) Quick Ratio	0.50	0.54	0.58	0.62	0.74
c) Quick Ratio [CL – Short Term Bank Loan]	--	38.78	34.90	33.09	28.01
d) Net Working Capital	715.73	843.26	982.15	1131.48	1295.02
Efficiency Ratios
a) Assets Turnover Ratio
b) Inventory Turnover Ratio [in Days]	3.07	3.45	3.58	3.65	3.44
c) Debtors Turnover [in Days]	0.02	0.02	0.02	0.02	0.02
d) Creditors Turnover [In Days]
Solvency Ratio
a) Debt – Equity Ratio	2.19	1.88	1.56	1.27	1.08
b) Total Ineptness Ratio	4.72	4.46	4.03	3.59	3.21
c) Insolvency Ratio
Coverage Ratios
a) Debt – services Coverage Ratio	5.08	5.70	6.12	6.51	6.11
b) Interest Coverage Ratio	14.70	24.07	38.55	70.24	192.65
c) Fixed Assets Coverage Ratio	0.29	0.46	0.65	0.88	1.05
d) Liquidity Coverage Ratio [in Days]	--	--	--	--
e) Commitment Ratio
Profitability Ratio
a) Profit Margin [Before Tax]	0.47	0.93	1.20	1.39	1.40
b) Profit Margin [After Tax]	0.33	0.65	0.84	0.97	0.98
c) Operating Profit Ratio	2.49	2.77	3.01	3.18	3.25
d) Return on Share Holder Fund [Before Tax]	8.24	17.44	21.48	23.21	20.23
e) Return of Share Holder Fund [After Tax]	5.88	12.26	15.15	16.30	14.17
f) Earning Per Share
g) Price Earning Ratio
h) Return on Investment	3.52	6.80	8.95	10.58	9.83
i) Return on Capital Employed	5.88	12.26	15.15	16.30	14.17
j) Dividend Yield
k) Pay Out Ratio
Other Ratios
a) Capital Employed per Employee
b) Credit Gering Ratio	--	--	--	--	--
c) Debt Quasi Equity Ratio	1.34	1.42	1.44	1.43	1.38
d) Gross Profit Ratio	3.11	3.36	3.59	3.76	3.83
e) Intt./ Cost of Production	0.02	0.02	0.02	0.02	0.02
f) Total Current Assets / Sales [in Time]	0.24	0.23	0.23	0.24	0.26

1.Purpose for Which Valuation Made

To ascertain present FMV for Corporation Bank, Khar (West) Branch.

2.Date on which Visit Made

22.09.2008

3.Name of the Owners

Purchaser:

Chaudhary and Company

Seller:

Chaudhary Steel and Alloys Limited

4.If the property is under joint ownership co-ownership share of each owner, is the share undivided

Purchaser: Partnership firm

Seller: Company having corporate office and hence they consider it as Limited Company.

5.Brief Description of the Property

Land and Building at:

Survey No.233 to 236 and 240 to 242 of Village Mangtane, Tal – Wada, District – Thane.

They referred to the copy of following provided to them.

1. Agreement for sale dated 26.03.2008 between Chaudhary Steel and Alloys Limited (the Seller) and Chaudhary and Company (the Purchaser)
2. 7/12 extract record of rights for land Survey Nos. mentioned in schedule of agreement.

Brief Description:

The industrial property Land and Building situated at above address, is about 6 Kms. From Kudus and 25 kms. From Bhiwandi. All civic amenities like Market, Bank, and Schools are available at Kudus.

The following Industrial Units are nearby.

1. Smitha Steel
2. Hira Steel
3. Champion Rolling Mill

Land Mark: Near Hira Steel

Boundaries:

East: Kund Ispat

West: Road

North: Arora Forgings

South: Open Land

Accommodation:

There are 03 sheds with heavy RCC foundation supporting mild steel columns, and trusses and A.C. sheet roofing. The height of the 2 sheds is 30’ and that of 3^rd shed is 18’.

There are 2 buildings of workers Quarters. They are RCC structures with A.C. sheet roofing, Cement Concrete flooring, wooden doors and wooden windows, etc.

The weigh bridge building foundation is under progress.

Area:

The land area as per agreement for sale, 1^st schedule is 20,290 sq. meters, which is considered for valuation.

As per 7/12 extract of record of rights of land, it was purchase for industrial use.

Note:

The Land of property under valuation are internally connected with Kund Ispat.

The The built up areas of buildings as per measurements is as per the following table and these areas have been considered for valuation.

Structure	Area (Sq. Ft.)
Mill shed	19234
Re-heating furnace shed	16678
Cooling bed shed	6545
Labour quarters - 1	2398
Labour quarters - 2	2156

Notes and Disclaimer:

1. For valuation, the land area has been considered as given in the agreement for sale and for structures they have depended upon the measurements taken at site because the areas are not available in the document provided to them and the copy of approved plan of the property has also not be provided to them
2. They consider the area given in the agreement, declared by the party and submitted for registration with the government authorities as final for valuation purpose. Any area that is not started in the agreement is not considered for valuation.
3. Their valuation is based on their experience and knowledge and this is an opinion only and does not stand as a guarantee for the value it can fetch if disposed, due to any emergency, in future.
4. The legal documents pertaining to the ownership of the above said property has been referred to on its face value and that is presumed that Bank has got the same verified through its legal counsel. They do not certify the veracity of the documents. This report does not certify valid or legal or marketable title of any of the parties over the property. Their report does not cover verification of ownership, title clearance, or legality and subject to adequacy of engineering/ structural design.
5. Copy of the approved plans not given for their verification and the same may be obtained from the owner.
6. Their valuation is only for the use of the party to whom it is addressed and no responsibility is accepted to any third party for the whole of any part of its contents.
7. Encumbrances of Loan, Government and other dues, stamp duty, registration charges etc. if any are not considered in the assets are free from encumbrances.
8. Wherever possible the internal dimensions of the premises are measured to arrive at carpet area and where this is not possible, due to some reasons, they refer to the area mentioned in society bill/ the plan (if available) from the copy of agreement and for the present trend of Built up/ Super built up area, the % is applied to the carpet area also keeping in view judgment given by the MRTP commission.

6. Location Street, Ward No.

Land and Building at:

Survey No.233 to 236 and 240 to 242 of Village Mangtane, Tal – Wada, District – Thane.

7.Survey Plot No. of Land

Survey No.233 to 236 and 240 to 242 of Village Mangtane

8.It the Property Situated in residential/ Commercial/ Mixed/ Industrial Area

Industrial Area

9. Classification of locality – High Class/ Middle Class/ Poor Class.

Industrial Area

10.Proximity to civic amenities like schools offices, Hospitals, Market Cinemas etc.

Schools, Hospitals, Markets are available at Kudus.

11.Means and Proximity to surface Communication by which the locality is served

Auto, Private vehicles etc.

12. a) Is the property owner occupied, tenant, or both

Owner Occupied

b) If partly occupied, specify portion and extent of area under owner occupation.

Owner Occupied

13. Name and Registration No. of Co-Op. Housing Society.

N.A.

14. Share Certificate No. and Face values.

N.A.

Sales and Marketability:
1. Give instance of sale of immovable property in the locality on a separate sheet including the name and address of the property, registration No., Sale price and area land sold.	Sales instances are not readily available. As such, local estate agent, builders and other related agencies were contacted to ascertain fair market value.
2. Market rates adopted	Prevalent Market Rate: Land: Rs.350/- to Rs.450/- per sq. mtr. Rate adopted for valuation: Land: Rs.350/- per sq. mtr. Structures: as per valuation table Factors considered for valuations: Location and locality, facilities and amenities, quality of construction, residual life of building, business potential, supply of demand, local nearby enquity, market feed back of investigation.
3. If sale instances are not available or relied upon, basis of arriving at the land rate	Enquired with local Architects and Real estate consultants about the current market rates in that area and on this basis, property is valued under “Land and Building Method:

PRESENT FAIR MARKET VALUATION:

Value of the property at which it can be sold in the open market at a particular time free from forced value or sentimental value. The market value need not be the same as the present value. Market value may be less than the present value. Market value of the any property gets affected at least by ten factors: Economy, Physical, Legal, Social, Utility, Marketability, Transferbility, Scarcity, Location and the most important factor ‘Demand’.

As mentioned here – in – before, the 7/12 extract of record of rights of land do mention that the land is being purchased for industrial purpose as per terms and conditions but they are not provided to us. Normally N.A permission letter of the collector is provided from which the terms and conditions of permission could be verified. The record of right 7/12 extract normally also mentions the reference No. and Date of N.A permission. The permission for construction is also given subject to land being converted to N.S for industrial use failing which construction could be considered unauthorized and demolition could be ordered and thus the value of construction would be zero. There is also large difference between agricultural and non agricultural land. Thus the valuation made by us would get reduced drastically if the N.A permission is not available. The bank may therefore get satisfied first about availability of N.A permission for industrial purpose before considering their valuation.

Valuation = Area x Rate

A) Cost of Land

Plot Area	20200 sq. mtrs.
Rate adopted for valuation	Rs.350/- per sq. mtr.
Value	Rs.7.073 Millions

B) Cost of Structure (Structures are new and Weigh – bridge under construction):

Structures	Year of Construction	Area in sq. ft.	Rate adopted in sq. ft. (Rs.)	FMV In (Rs. In Millions)
Mill Shed	2007-08	19234	500	9.617
Reheating Furnace Shed	2007-08	16678	500	8.339
Cooling Bed Shed	2007-08	6545	500	3.273
Workers Quarters – I	2007-08	2398	600	1.439
Workers Quarters	2007-08	2156	600	1.294
Total value of Structures				23.961

C) Land Development Cost Including Filling and Leveling Wall etc.

Plot Area	20209sq. mtrs.
Rate adopted for valuation	Rs.100/- per sq. mtr.
Value	Rs.2.021 Millions

Total Value of the property = A+B+C

= Rs.7.073 + 23.961 + 2.021

= Rs.33.055 Millions

Say = Rs.33.055 Millions

DISTRESS SALES VALUE:

Rs.26.445 Millions

KUNAL ISPAT AND ALLIED INDUSTRIES LIMITED

Director	Mr. Kunal Chaudhary Mr. Dinesh Chaudhary Mrs. Uma Chaudhary
Auditors	P.C. Gaglani and Company 11/A parle Ashok Niwas Chs. South Pond Road, 3^rd Floor, Vile Parle [West], Mumbai – 400056 Tel No.: 91-22-26133583
Bankers	Corporation Bank
Registered Office	201, Kapadia Apartment, S. V. Road, Vile Parle [West], Mumbai – 400056 Tel No. : 91-22-26134058
Fixed Assets	Furniture and Fixture Building Plant and Machineries Land Vehicles Electrical Installations
Customers	Mehta Steel Company Mehul Steel Trades Anita Gas Services Arihant Enterprises Delux Foundry and Workshop Golden Engineering Company Panesar Machine Tools Patil Construction Abhishek Enterprises Amar Ispat Limited Rajesh Business and Leisure Hotel Limited Rajesh and Company
Suppliers	A J Casting Private Limited Acme Scale Company Kumar Engineering Corporation P S Rao and Associates Patil Construction Patil Earthmovers R K Govil and Company Safe Security Services Sai Krupa Engineering Works Saptashrungi Alloys Private Limited Vir Alloys Stell Company Private Limited

Financial Results

The Profit and Loss Account of the company shows a Net Profit amounting to Rs. 4.091 Millions [Rs. 0.715 Million]

General Review

The Company’s performance was satisfactory during the year. The company achieved its turnover as well it well achieve its target of Net Profit. The Directors are hopeful that the company shall be able to achieve its target of Net Profit in the year to come. The future of the company seems to be bright.

CAPITAL STRUCTURE

Capital Investment :
Owned :	Rs. 7.300 Millions
Borrowed :	--
Total :	Rs. 7.300 Millions

BALANCE SHEET

Rs in Millions

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		7.300	7.300	7.300
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		6.384	2.293	3.008
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		13.684	9.593	10.308
LOAN FUNDS
1] Secured Loans		58.663	41.818	0.000
2] Unsecured Loans		55.715	53.398	(4.050)
TOTAL BORROWING		114.378	95.216	(4.050)
DEFERRED TAX LIABILITIES		2.245	1.842	0.000
TOTAL		130.307	106.651	6.258
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		40.457	42.302	1.805
Capital work-in-progress		0.000	0.000	2.278
INVESTMENT		1.099	1.040	1.383
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	63.979	29.850	0.100
	Sundry Debtors	26.061	27.080	1.780
	Cash & Bank Balances	0.709	0.314	0.506
	Other Current Assets	4.302	4.885	0.059
	Loans & Advances	0.383	4.862	0.533
Total Current Assets		95.434	66.991	2.978
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	2.820	3.682	2.191
	Provisions	3.863	0.000	0.000
Total Current Liabilities		6.683	3.682	2.191
Net Current Assets		88.751	63.309	0.787
MISCELLANEOUS EXPENSES		0.000	0.000	0.005
TOTAL		130.307	106.651	6.258

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		619.373	71.838	0.000
Other Income		0.000	0.134	1.835
Total Income		619.373	71.972	1.835
Profit/(Loss) Before Tax		5.254	1.133	1.620
Provision for Taxation		1.163	1.848	0.231
Profit/(Loss) After Tax		4.091	[0.715]	1.390
Expenditures :
	Cost of Goods Sold	597.905	67.298	0.000
	Indirect Expenses	10.655	2.280	0.211
	Depreciation & Amortization	5.559	1.261	0.004
Total Expenditure		614.119	70.839	0.215

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	0.66	(0.99)	75.75
Net Profit Margin (PBT/Sales)	(%)	0.85	1.58	0.00
Return on Total Assets (PBT/Total Assets}	(%)	3.87	1.4	33.87
Return on Investment (ROI) (PBT/Networth)		0.38	0.12	0.16
Debt Equity Ratio (Total Liability/Networth)		8.85	10.31	(0.61)
Current Ratio (Current Asset/Current Liability)		14.28	18.19	1.36

TRILOK SHIPBREAKERS LIMITED

CAPITAL STRUCTURE

AS ON 31.03.2008

Authorised Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs. 100/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
92676	Equity Shares	Rs. 100/- each	Rs.9.268 Millions

Note :

Of the above 46,338/- shares are allotted as fully paid up by way of bonus shares. The bonus shares are issued by capitalization of profits.

BALANCE SHEET

Rs in Millions

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		9.268	9.268	9.268
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2.279	2.622	2.642
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		11.547	11.890	11.910
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		8.918	4.145	24.107
TOTAL BORROWING		8.918	4.145	24.107
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		20.464	16.035	36.017
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.345	3.572	3.017
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.407	0.407	17.507
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.168	0.168	0.080
	Sundry Debtors	0.000	0.991	5.500
	Deposits / Receivables	1.407	1.694	1.351
	Cash & Bank Balances	0.350	0.509	3.034
	Other Current Assets	0.021	0.028	0.042
	Loans & Advances	15.081	12.243	9.765
Total Current Assets		17.027	15.633	19.772
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	0.295	3.557	4.229
	Provisions	0.020	0.020	0.050
Total Current Liabilities		0.315	3.577	4.279
Net Current Assets		16.712	12.056	15.493
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		20.464	16.035	36.017

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		0.000	0.000	124.398
Other Income		0.363	0.801	2.660
Total Income		0.363	0.801	127.058
Profit/(Loss) Before Tax		(0.330)	0.065	0.148
Provision for Taxation		0.013	0.085	0.149
Profit/(Loss) After Tax		(0.343)	(0.020)	(0.001)
Expenditures :
	Increase/(Decrease) in Finished Goods	0.000	(0.088)	18.001
	Manufacturing Expenses	0.000	0.088	104.422
	Other Charges	0.692	0.535	4.486
	Financial Charges	0.001	0.201	0.000
Total Expenditure		0.693	0.736	126.909

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	(94.49)	(2.50)	(0.00)
Net Profit Margin (PBT/Sales)	(%)	(0.00)	0.00	0.12
Return on Total Assets (PBT/Total Assets}	(%)	(1.62)	0.34	0.65
Return on Investment (ROI) (PBT/Networth)		(0.03)	0.00	0.00
Debt Equity Ratio (Total Liability/Networth)		0.80	0.65	2.38
Current Ratio (Current Asset/Current Liability)		54.05	4.37	4.62

CHAUDHRY STEEL AND ALLOYS LIMITED

AS ON 31.03.2008

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs. 100/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
53180	Equity Shares	Rs. 100/- each	Rs. 5.318 Millions

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		5.318	5.318	5.318
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		8.599	8.036	10.081
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		13.917	13.354	15.399
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.928
2] Unsecured Loans		10.959	12.212	11.638
TOTAL BORROWING		10.959	12.212	12.566
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		24.876	25.566	27.965
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.445	7.476	6.993
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.610	0.610	5.778
DEFERREX TAX ASSETS		0.306	0.476	0.653
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	2.787	2.530	3.301
	Cash & Bank Balances	1.113	0.616	0.590
	Other Current Assets	0.000	0.000	10.468
	Loans & Advances	14.714	14.029	0.426
Total Current Assets		18.614	17.175	14.785
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	0.099	0.170	0.244
	Provisions	0.000	0.000	0.000
Total Current Liabilities		0.099	0.171	0.244
Net Current Assets		18.515	17.004	14.541
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		24.876	25.566	27.965

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		0.000	0.000	15.952
Other Income		2.132	0.276	8.316
Total Income		2.132	0.276	24.268
Profit/(Loss) Before Tax		0.733	(1.868)	3.305
Provision for Taxation		0.169	0.177	0.184
Profit/(Loss) After Tax		0.564	(2.045)	3.121
Expenditures :
	Cost of Goods Sold	1.396	2.142	20.926
	Finance Charges	0.002	0.003	0.037
Total Expenditure		1.398	2.145	20.963

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	26.45	(740.94)	12.86
Net Profit Margin (PBT/Sales)	(%)	0.00	0.00	20.72
Return on Total Assets (PBT/Total Assets}	(%)	3.05	(7.58)	15.18
Return on Investment (ROI) (PBT/Networth)		0.05	0.14	0.21
Debt Equity Ratio (Total Liability/Networth)		0.79	0.93	0.83
Current Ratio (Current Asset/Current Liability)		188.02	100.44	60.59

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 records 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.45.44
UK Pound	1	Rs.79.62
Euro	1	Rs.63.48

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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