MIRA INFORM REPORT

Report Date :

15.04.2011

IDENTIFICATION DETAILS

Name :	I.P. CONSULTANT AND CONSTRUCTION COMPANY
Registered Office :	Behind Shop No. 1, New Grain Market, Gharonda District, Karnal-132114
Country :	India
Financials (as on) :	31.01.2011 (Provisional)
Year of Establishment :	May 2007
Legal Form :	Sole Proprietory Concern
Line of Business :	Work Construction – Contracts relating to site work.

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 :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear
Comments :	Subject is an established concern having satisfactory track. Trade relations are reported as fair. The valuation report and networth statement received seems to be satisfactory. No complaints have been heard from indirect or market sources. It would be advisable to take adequate securities while dealing with the subject.

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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

LOCATIONS

Registered Office :

Behind Shop No. 1, New Grain Market, Gharonda District, Karnal-132114, India

SOLE PROPRIETOR

Name :	Mr. Parmal Singh
Designation :	Proprietor

BUSINESS DETAILS

Line of Business :	Work Construction – Contracts relating to site work.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

No. of Employees :	Approximately 30
Bankers :	Corporation bank- Gharonda branch

Banking Relations :	--
Auditors :
Name :	Midha and Associates Chartered Accountant

CAPITAL STRUCTURE

PROPRIETOR’S CAPITAL ACCOUNT

For the year Ended 31.01.2011

Particulars	Amount	Particulars	Amount
To Drawings	0.048	By Balance B/d	0.534
To Balance C/d	0.712	By Net Profit	0.226
	0.760		0.760

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.01.2011 (Provisional)	31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		0.712	0.534	0.454	0.312
2] Share Application Money		0.000	0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000	0.000
NETWORTH		0.712	0.534	0.454	0.312
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000	0.000
TOTAL		0.712	0.534	0.454	0.312
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.212	0.243	0.286	0.027
Capital work-in-progress		0.000	0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000	0.000
	Sundry Debtors	1.456	0.268	0.128	0.216
	Cash & Bank Balances	0.146	0.086	0.079	0.042
	Other Current Assets	0.000	0.000	0.000	0.000
	Loans & Advances	0.056	0.002	0.019	0.074
Total Current Assets		1.658	0.356	0.226	0.332
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1.000	0.000	0.000	0.000
	Other Current Liabilities	0.158	0.065	0.058	0.047
	Provisions	0.000	0.000	0.000	0.000
Total Current Liabilities		1.158	0.065	0.058	0.047
Net Current Assets		0.500	0.291	0.168	0.285
MISCELLANEOUS EXPENSES		0.000	0.000	0.000	0.000
TOTAL		0.712	0.534	0.454	0.312

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.01.2011 (Provisional)	31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	6.896	3.657	3.109	2.856
		Other Income	0.000	0.000	0.000	0.000
		TOTAL	6.896	3.657	3.109	2.856
Less	EXPENSES
		Material Consumed	4.760	2.528	1.991	1.858
		Accountancy Charges	0.020	0.009	0.006	0.006
		Wages and Salary	1.642	0.816	0.763	0.712
		Staff Welfare	0.063	0.019	0.019	0.013
		Entertainment	0.006	0.005	0.005	0.004
		Other Expenses	0.149	0.064	0.051	0.043
		TOTAL	6.640	3.441	2.835	2.636
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		0.256	0..216	0.274	0.220
Less/ Add	DEPRECIATION/ AMORTISATION		0.030	0.042	0.025	0.005
	NET PROFIT		0.226	0.174	0.249	0.215

KEY RATIOS

PARTICULARS		31.01.2011 (Provisional)	31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.28	4.76	8.01	7.53
Net Profit Margin (PBT/Sales)	(%)	3.28	4.76	8.01	7.53
Return on Total Assets (PBT/Total Assets}	(%)	12.09	29.05	48.63	59.89
Return on Investment (ROI) (PBT/Networth)		0.32	0.33	0.55	0.69
Debt Equity Ratio (Total Liability/Networth)		1.63	0.12	0.13	0.15
Current Ratio (Current Asset/Current Liability)		1.43	5.48	3.90	7.06

LOCAL AGENCY FURTHER INFORMATION

PROJECT REPORT

1. NAME AND CONSTITUTION

The Business is being Carried on under the name and style of I.P. Consultant and construction company (Here-in-after called the Unit). This is proprietorship concern of Mr. Parmal Singh s/o Mr. Ran Singh R/o Dharam Veer Colony, Gharaunda, District Karnal. Proprietor is 30 years old and having the experience of this line of business more than 7 years. Unit is engaged in the construction line of business. Proprietor has cardial relation in the market.

2. LOCATION

Head office of the unit is located at behind Shop No. 1, New Grain Market, Gharunda, Karnal

3. INTRODUCTION

As above mention that unit engaged in the construction line of business like Road, Bridge, Tank, RCC Road, Approved Road and Proprietor has been experienced of more than 15 years in this lien of construction. So Unit easily got all types of construction contact form the Government Department and Sub contract from the bigger contractors. From the above IT Evident that unit will not face any problem to achieve its sales/ profit target. But many time while executing the current contract payment will received very late on passing of bill, and in mean time unit will face problem of fund. Due to which IT effect the execution of other contract and many time large nos. of bulk order for supply of material/ work order also get by the unit, than because of fund unit face the problem to execute the large bulk order.

So due to Limited fund with the unit IT could not achieve the desire sales target. Hence unit approach to the bank for financial assistance in the form of working capital loan of Rs. 2.500 Millions.

4. OFFICE/ GODOWN:

Unit has the requisite office/ godown, which is sufficient for the present requirement and future expansion of the unit.

5. LABOUR

Regarding the labour supply, unit has sufficient no. of labour contractor which provide the labour easily.

6. MATERIAL

Regarding availability of material there is sufficient nos. of local supplier which assure the smooth supply of building material.

7. BASIS AND PRESUMPTION

Elevant Assumption have been stated wherever necessary, however the general assumption are as under:-

i) Price have been considered constant it is assumed that any increase in cost of purchase shall be offset by the corresponding increase in sale price.

ii) The Report has been complied on the basis of Data Supplied by the party.

8. ECONOMIC VIABILITY

From the above they may conclude that the project is technically Fit and Economically viable. The profitability of the project is also very good.

9. CONCLUSION

The objective of the report is to assess the working requirements of the party and on appraisal of this report. It is evident that the unit is economically.

COST OF PROJECT

(Rs. in Millions)

Particulars	EXISTING	PROPOSED	TOTAL
Fixed Assets	0.243	0.000	0.243
Margin for Working Capital	0.291	0.550	0.841
	0.534	0.550	1.084
	MEANS OF FINANCE
	EXISTING	PROPOSED	TOTAL
Proprietor’s Capital	0.534	0.550	1.084
	0.534	0.550	1.084

PROJECTED BALANCE SHEET

(Rs. in Millions)

PARTICULARS	2011	2012	2013
LIABILITIES
PROPRIETOR’S CAPITAL	1.084	1.449	1.904
Add: Net Profit	0.490	0.605	0.718
	1.574	2.054	2.622
Less: Withdrawals	0.125	0.150	0.175
	1.449	1.904	2.447
Working Capital Loan	2.500	2.500	2.500
	3.449	4.404	4.947
ASSETS
Fixed Assets	0.243	0.207	0.176
Less: Depreciation for the year	0.036	0.031	0.026
	0.207	0.176	0.150
C. Assets	0.059	0.065	0.070
Closing Stock	0.883	0.853	0.907
Sundry Debtors	2.750	3.250	3.750
Cash and Bank Balance	0.050	0.060	0.070
	3.949	4.404	4.947

PROJECTED PROFITABILITY STATEMENT

(Rs. in Millions)

PARTICULARS	2011	2012	2013
Sales/ Receipts	11.000	13.000	15.000
Raw Material Consumed	6.380	7.540	8.700
Wages	3.300	3.900	4.500
Rent	0.012	0.012	0.012
Interest on Working Capital Loan	0.300	0.300	0.300
Consumable Store	0.080	0.100	0.120
Depreciation	0.036	0.031	0.026
Administrative Expenses	0.120	0.150	0.180
Selling and Distribution Expenses	0.220	0.260	0.300
Miscellaneous and General Expenses	0.020	0.030	0.040
Total	10.468	12.323	14.178
Net Profit Before Tax	0.532	0.677	0.822
Provision for Tax	0.042	0.072	0.104
Net Profit After Tax	0.490	0.605	0.718
Net Cash Accrual	0.526	0.636	0.744

PROJECTED FUND FLOW STATEMENT

(Rs. in Millions)

PARTICULARS	2011	2012	2013
SOURCES OF FUNDS
Proprietors Capital	1.084	--	--
Net Profit	0.490	0.605	0.718
Working Capital Loan	2.500	0.000	0.000
Depreciation	0.036	0.031	0.026
	4.110	0.636	0.744
APPLICATION OF FUND
Fixed Assets	0.243	--	--
Withdrawals	0.125	0.150	0.175
Increase in stock	0.883	[0.003]	0.054
Increase in Sundry Debtors	2.750	0.500	0.500
Increase in Current Assets	0.059	0.006	0.005
	4.060	0.626	0.734
Opening Cash and Bank Balance	--	0.005	0.060
Surplus/ Deficit	0.050	0.010	0.010
Closing Cash and Bank Balance	0.050	0.060	0.070

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PROPERTY VALUATION REPORT

GENERAL INFORMATION

Name of the party/ Purchaser and address

Mr. Ran Singh S/o Mr. Naha Singh and

Mr. Parmal Singh S/o Mr. Ran Singh

Dharambir Colony, Near Anaj Madi, Gharaunda

Name/s of the reported owner/ Name/s of person in whose name/s the property registered and address

Mr. Ran Singh S/o Mr. Maha Singh and

Mr. Parmal Singh S/o Mr. Ran Singh

Mobile : 91-9416000039

Purpose of Valuation

To assess the present market value of the property for Bank purpose only.

List of documents produced for perusal

Photocopy of deed nos. 630/1 dated 27.06.1989 and deed no. 171 dated 01.05.2008

Date of Inspection

20.01.2011

Date of Valuation

20.01.2011

Approximate distance from the branch to the property

Approximately 2 km.

Situation/ location/ brief description of the land/ site and brief description of the building

Property and existing residential building, and identified, demarked and shown by the applicant/ owner, situated on land which is part of Khewat No. 621, Khatoni No. 846, Murabba, Killa No. 1(7-11), Ward No. 1, Abadi Dharambir colony, Near New Grain Market, Gharaunda, District Karnal

Dimension and boundaries of the property

	As Per deed	As per Site
North	45’0” Gali	45’0” Street
South	45’0” Gali	45’0” Street
East	28’0” + 28’0” Plot of Kanwar Bhan	56’0” Plot of Goyal
West	28’0” Street	56’0” Street

Property tax details

Details will be provided by the applicant/ owner

Assuming the entire property is let out, the probable monthly rent and advance building rent

Approximately Rs. 5000.00 per month

General Remarks

Residential Building

VALUATION DETAILS

The total area (extent) of the site/ land

140+140= 280 sq.yd. (as per deeds)

Description of the site/ land

Property and existing residential building, and identified, demarked and shown by the applicant/ owner, situated on land which is part of Khewat No. 621, Khatoni No. 846, Murabba, Killa No. 1(7-11), Ward No. 1, Abadi Dharambir colony, Near New Grain Market, Gharaunda, District Karnal

Character of locality

Residential

Classification

Residential

Development of surrounding areas

Developed area

Feasibility to the civic amenities like Schools, Hospital, Offices, Markets etc.

Available

Shape of land

As per site plan

Nature of right, whether leasehold/ freehold

Freehold

Road facility

Available

Is it a corner Plot?

No.

Water supply/ Potentially

Available

Under ground sewerage system

Available

General Remarks

Residential Building

Prevailing Unit Market Rate

Rs. 15000.00 sq. yd.

Unit Rate adopted in this valuation

Rs. 15000.00 sq.yd.

Valuation of the site/ land

280 sq. yd @ Rs. 15000.00 sq. yd = Rs. 4.200 Millions

BUILDING

Type of Construction

Residential building

Quality Construction

Normal

Appearance of the building

Normal

Number of Floors

GF only

Maintenance of the building

Building is normal condition

DESCRIPTION OF THE BUILDING

Foundation

Brick masonary walls in step foundation – as told

Superstructure

Brick Masonary

Roof

RCC Slab

Doors

Wooden

Windows

Wooden

Sanitary Fittings

Available

Flooring

Chips

Electric Supply

Available

Total Plinth Area

GF only = 1156 sq.ft.

Total Covered area = 1156 sq.ft.

Year of Construction

1990 – as told

Total life of building

Approximately 35 years with periodically maintenance of the building

General Remarks

Residential Building

Replacement rate of construction with the existing conditions and specification

GF= 1156 sq.ft. @ Rs. 600/ Sq.ft.

= Rs. 0.694 Million

B/ wall, main gates, open flooring, roof projection etc. L.S. = Rs. 0.200 Millions

Total built up value = Rs. 0.894 Millions

Replacement value

Rs. 0.894 Million

Description value at the rate

Nil, being depreciated replacement value considered

Present value of the building

Rs. 0.894 Million

TOTAL VALUATION

Valuation of the land

Rs. 4.200 Millions

Valuation of the Building

Rs. 0.894 Million

Total Value (Land+ Building)

Rs. 5.094 Million Say Rs. 5.0941 Millions

Realizable / Distress value of the property

Rs. 4.300 Millions

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STATEMENT SHOWING ASSETS AND LIABILITIES NET WORTH STATEMENT

NAME OF THE APPLICANT	MR. PARMAL SINGH
NAME OF THE GUARANTOR	MR. RAN SINGH

IMMOVABLE PROPERTIES	APPLICANT	GUARANTOR
Address of the Property with Survey No./ Door No. etc.	H. No. 331, Word No. 1 Dharambir Colony Gharaunda	1. Murrabba No. 1, Killa No. 11, 12, 13, 14, 15, 16, 17, 18 Village Khara Kheri Gharaunda 2. Khewat No. 621, Khatoni No. 846, Dharambir Colony
Description: Land/ Site/ Building	Building	Land and Building
Whether free hold/ Lease hold	Free hold	1. Freehold 2. Freehold
Type of Property Commercial/ residential/ agricultural	Residential	1. Agricultural 2. Residential
Area/ Extent of land	140 sq. yards	140 sq. yards
Present Market/ Assessed Value	Rs. 2.547 Millions	Rs. 2.547 Millions + Rs. 37.500 Millions = Rs. 40.047 Millions
INVESTMENT IN BUSINESS CAPITAL
Name of the company/ firm/ concern in which investment is made	I.P. Consultant and construction company	--
Date of Investment	31.03.2010	--
PRESENT VALUE OF INVESTMENT	Rs. 0.534 Million	--
VEHICLES OWNED
Model/ Make	1. Toyato Innova 2007 2. Swift Desire	--
Date of Purchase	1. December 2007 2. 2011	--
Whether hypothecation for loan	1. No. 2. Yes	--
Details of loan against vehicles	Corporation Bank
Present market Value	Rs. 0.700 Million + Rs. 0.600 Million = Rs. 1.300 Millions	--
OTHER ASSETS
Furniture and Fixture	Rs. 0.150 Million	--
Cash in Hand	Rs. 0.100 Million	--
Gold	Rs. 0.300 Million	--
Plant and Machinery	Rs. 0.250 Million	--
Other Asset if any (Specify) Unaudited loans and advance interested	--	Rs. 0.500 Million
TOTAL ASSETS	Rs. 5.181 Millions	Rs. 41.047 Millions
LIABILITIES (PLEASE FURNISH LOANS AVAILED FROM BANKS/ FINANCIAL INSTITUTIONS AND OTHER BORROWINGS)
Name of the Bank/ Institution	Corporation Bank, Gharaunda	--
Date of Loan	March 2011
Amount of Loan availed	Rs. 0.469 Million
Security offered if any	Hypothecation of stocks desire car
AMOUNT OUTSTANDING	Rs. 0.469 Million
NET WORTH	RS. 4.712 MILLIONS	RS. 41.047 MILLIONS

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COMPUTATION OF INCOME TAX

Expenses	Amount Rs. in Millions	Income	Amount Rs. in Millions
Power/ Fuel	0.022	Gross Receipts	0.218
Salary	0.012
Telephone	0.010
Net Profit	0.174
Total	0.218	Total	0.218

Particulars	Amount Rs. in Millions
Taxable Income	0.174
Tax on Income	0.001
Add: Education Cess 3%	0.000
Tax Payable	0.001
T.D.S	0.002
Refund	0.000

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TO WHOM IT MAY CONCERN

It is certified that Mr. Parmal Singh s/o Mr. Ran Singh R/o Dharmveer colony, Gharaunda District Karnal has been successfully completed Earth Work as under:-

Period	Work Name	Amount Rs. in Millions
2007-08	A) Const. of STP Channel form K.M. 13.100 to K.M. 25.700 including Pucca Structure (Xen Construction Div- 32 Bahadurgarh)	4.550
	B) Bank Strengthening raising and repair of laining as per revised capacity of Hansi Branch RD 37150 to 55365 (Xen Safidon WSD Safidon)	2.634
2008-09	Work of single brick on edge pitching on selective reaches of MLL Canal From RD 176100 to 190275 (Xen Indri WSD, Karnal)	1.819
2009-10	Work of single brick on edge pitching on selective reaches of MLL Canal From RD 176100 to 190275 (Xen Indri WSD, Karnal)	0.152

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.44.48
UK Pound	1	Rs.72.37
Euro	1	Rs.64.42

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.