MIRA INFORM REPORT

Report Date :

16.04.2011

IDENTIFICATION DETAILS

Name :	SARLIA STEELS
Registered Office :	G-2, Giriraj Building, S.T. Road, Steel Market, Masjid, Mumbai-400009, Maharashtra
Country :	India
Financials (as on) :	30.09.2010
Date of Incorporation :	Proprietorship Since June 2005 converted into Partnership Firm in November 2010
Firm. Reg. No.:	BA 103151
PAN No.: [Permanent Account No.]	ABVPFS2739Q
Legal Form :	Partnership concern with an unlimited liability of the partners.
Line of Business :	Trader of Steel Products.

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. Partners are reported to be experienced, respectable and having satisfactory means. The valuation report and networth statement provided seems to be satisfactory. No complaints have been heard from indirect or market sources. It would be advisable to take adequate security 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

INFORMATION PARTED BY

Name :	Mr. Kirtikumar Jain
Designation :	Partner
Contact No.:	91-9769554999
Date :	06.04.2011

LOCATIONS

Registered Office :	G-2, Giriraj Building, S.T. Road, Steel Market, Masjid, Mumbai-400009, Maharashtra, India
Tel. No.:	91-22-30297864
Mobile No.:	91-9769554999 (Mr. Kiritkumar Jain)
E-Mail :	saralia.steels@gmail.com
Area :	3000 sq.ft. (Rented)

PARTNERS

Name :	Mr. Kirtikuar Jain
Designation :	Partner
Address :	Raw House A, Sai Aangan, Behind Ashok Nagar, Nahur Village, Nahur, Mulund (West), Mumbai-400080, Maharashtra, India
Date of Birth/Age :	56 Years
Qualification :	Under Graduate
Experience :	35 Years
Name :	Mr. Vicky Popat
Designation :	Partner
Address :	Flat No. 4, Raj Hans Building, Zaver Road, Mulund (West), Mumbai-400080, Maharashtra, India
Date of Birth/Age :	26 Years
Qualification :	Graduate
Experience :	5 Years
Name :	Mr. Hemant Shah
Designation :	Partner
Address :	E-202, Sanghavi Tower, Mira Bhayander Road, Mira Road (East), Thane-401104, Maharashtra, India
Date of Birth/Age :	30 Years
Qualification :	B.Com
Experience :	5 Years

BUSINESS DETAILS

Line of Business :	Trader of Steel Products
Terms :
Purchasing :	Cash

GENERAL INFORMATION

Suppliers :

Name of the Supplier and their contact numbers	Location	Relationship (No. of Years)	Credit Period Allowed
Ambe Metal Steel Works	Masjid	4-5 Years	30 Days
Classic Steel Rolling Mill	Nariman Point	4-5 Years	30 Days

Customers :

Name of the Customers and their contact numbers	Location	Relationship (No. of Years)	Credit Period Allowed
BA Corporation	Thana	5 Years	35-40 Days
Rakesh Enterprises	Nariman Point	4 Years	35-40 Days

No. of Employees :

Approximately 10 (in office)

Bankers :

• New India Co-Operative Bank Limited, Gunbow Street, Fort Branch
• Bank of Mahrashtra, Nariman Point Branch

Facilities :

Credit Limit: Rs. 60.000 Millions

Bank	Nature of Credit Facility	Sanctioned loan Amount	Outstanding Balance
New India Co-operative Bank Limited	Cash Credit	Rs. 60.000 Millions	Rs. 58.000 Millions

Unsecured Loans	30.09.2010 Rs. in Millions	31.03.2010 Rs. in Millions
From Friends and relatives	2.000	2.000
From others	3.011	3.011
Total	5.011	5.011

Banking Relations :	--
Auditors :
Name :	Mulraj D Gala Chartered Accountant
Address :	B-21, Shastri Niketan, R.K. Chemburkar Marg, Behind Telephone Exchange, Chembur Naka, Mumbai-400071, Maharashtra, India
Tel. No.:	91-22-25294941
E-Mail :	camadgala@rediffmail.com
Associates/Subsidiaries :	Steels Yard Private Limited Address: 67F, Steel Yard Building, S.T. Road, Masjid, Mumbai-400009, Maharashtra, India Activity: Trading in Steel Items. Bankers: Only Current Account Bombay Mercantile Co-Operative Bank Limited

CAPITAL STRUCTURE

CAPITAL ACCOUNT

As on 30.09.2010

Particulars	Amount Rs. in Millions	Amount Rs. in Millions
Opening Balance		31.568
Add: Credits
Capital Introduced during year	--
Net Profit during year	4.525	4.525
Less Debts		36.093
Drawings	0.251
Income Tax	1.400	1.651
Closing Balance		34.442

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		30.09.2010	31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		34.442	31.568	27.127	22.658
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		34.442	31.568	27.127	22.658
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000	0.000
2] Unsecured Loans		5.011	5.011	2.832	3.036
TOTAL BORROWING		5.011	5.011	2.832	3.036
DEFERRED TAX LIABILITIES		0.000	0.000	0.000	0.000
TOTAL		39.453	36.579	29.959	25.694
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.493	2.687	2.621	2.143
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	34.621	32.542	20.454	16.803
	Sundry Debtors	27.562	24.111	19.548	14.645
	Cash & Bank Balances	0.326	0.392	0.299	0.179
	Other Current Assets	0.000	0.000	0.000	0.000
	Loans & Advances	2.555	2.528	2.302	2.109
Total Current Assets		65.064	59.573	42.603	33.736
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	28.104	25.681	15.265	10.185
	Other Current Liabilities	0.000	0.000	0.000	0.000
	Provisions	0.000	0.000	0.000	0.000
Total Current Liabilities		28.104	25.681	15.265	10.185
Net Current Assets		36.960	33.892	27.338	23.551
MISCELLANEOUS EXPENSES		0.000	0.000	0.000	0.000
TOTAL		39.453	36.579	29.959	25.694

PROFIT & LOSS ACCOUNT

	PARTICULARS		30.09.2010	31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	188.915	222.570	152.646	116.270
		Other Income	0.045	0.075	0.056	0.037
		TOTAL (A)	188.960	222.645	152.702	116.307
Less	EXPENSES
		Cost of Sales	182.727	213.566	146.258	111.504
		Administrative Expenses	1.429	2.671	2.001	1.448
		TOTAL (B)	184.156	216.237	148.259	112.952
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		4.804	6.408	4.443	3.355
Less	FINANCIAL EXPENSES (D)		0.085	0.151	0.106	0.056
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.719	6.257	4.337	3.299
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.194	0.468	0.492	0.431
	NET PROFIT (E-F) (G)		4.525	5.789	3.845	2.868

KEY RATIOS

PARTICULARS		30.09.2010	31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.39	2.60	2.52	2.47
Net Profit Margin (PBT/Sales)	(%)	2.40	2.60	2.52	2.47
Return on Total Assets (PBT/Total Assets}	(%)	6.70	9.30	8.50	7.99
Return on Investment (ROI) (PBT/Networth)		0.13	0.18	0.14	0.13
Debt Equity Ratio (Total Liability/Networth)		0.96	0.97	0.67	0.58
Current Ratio (Current Asset/Current Liability)		2.31	2.32	2.79	3.31

LOCAL AGENCY FURTHER INFORMATION

DUE DILIGENCE REPORT

BUSINESS ACTIVITIES

Profile (Nature of Activity)	Trading in Steel Products
Products	All kind of Ms Steels (I beams, Angle, Channel, Plate etc.)
Details of Fixed Assets Land and Buildings Plant and Machinery Furniture and Fixture Other Assets	-- -- Rs. 1.254 Millions Rs. 1.432 Millions
Premises Owned Leased (if so, monthly rent to be stated)	Rented, Rs. 25000 per month

PERSONAL ASSETS OF THE PARTNER

Name	Description of the Assets owned by them	Amount Rs. in Millions	Whether offered as security
Mr. Kiritkumar Jain	Total Assets	117.651	No
Mr. Vicky Popat	Total Assets	35.660	No
Mr. Hemant Shah	Total Assets	98.610	No

INSURANCE DETAILS

Unit’s Assets Covered	Policy No./ Cover Note	Validity	Sum Assured (Rs. in Millions)	Risk Covered
Stocks	911101000022830000	Up to 17-01.2012	50.000	Comprensive

FINANCIAL ANALYSIS

Last available financial statement

(Year ended dd/mm/yyyy)

31.03.2010

Recent summary financial

(upto a period not more than two months old)

30.09.2010

Advance Tax Paid

Rs. 2.800 Millions (End of March 2011)

Change in borrowings

(from FY 09-10 to FY 10-11)

Rs. 60.000 Millions Cash Credit

Debtors Position

(At last month end – specify amount > 90 Days)

Rs. 57.800 Millions than 60 Days (February)

Creditors Position

(At last month end- specify all suppliers not paid for more than 90 days)

Rs. 1.031 Millions less than 60 Days (February)

Stock Position (at last month end)

Rs. 50.747 Millions (February)

Drawing Power

Rs. 64.554 Millions (February)

Whether the critical ratios conforms to the branch mark stipulation YES

Current Ratio	1.25
Debt-Equity Ratio	2.00:1
DSCR	1.50
TOL/TNW	4:1
Promoter’s Contribution	25%

REVIEW OF BANK STATEMENTS FOR THE LAST SIX MONTHS

Number of Credit/ Debits, month-wise	Credit 30 and Debit 20 (Approximately)
Month-wise Credits into the Account (Block credits and bounces/ reversals to be ignored)	Approximately Rs. 32.400 Millions per month
Evidence of servicing existing debt obligations	Credit facilities is enjoying form January 2011 only
Line Utilisation – any evidence of perennial overdrawing	Nil (Within limit)
Evidence of statutory dues being paid on time	Yes

ACTIVITY LEVELS AT THE TIME OF VISIT

Number of Employees	7-8
Level of Activity (description of production/ Delivery/ Customers)	Loading/ Unloading Activity at Godown.

Firm’s and Partners’ Background

Subject is a partnership firm engaged into trading of Steel long products like MS Tor Steel, MS Channels, Beams etc. It has been converted into Partnership Firm with same name in the current year w.e.f 1St April, 2010. New firm has been formed on 22^nd November, 2010. SS was started as proprietary firm before 5 years by Mr. Vicky Popat.

The same firm has been converted into partnership firm with Mr. Kirtikumar Jain and Mr. Hemant Shah and Mr. Vicky Popat as partners. As per the partnership deed registered with RoF, the profit sharing ratio is 1) Kirti Kumar Jam -40% 2) Mr. Vicky Popat — 30% and 3) Mr. Hemant Shah-30%.

The firm is operating its business from office cum storage facilities at Office No. 2, Plot No. 73, Giriraj Building, S.T. Road, Masjid Bunder (East), Mumbai -400 009. This premises is owned by one of its partner Mr. Hemant Shah and it has been rented to Firm for period total period of three years with initial monthly rental of Rs 0.025 Million.

Detailed background of partners as under:

Mr. KirtiKumar Jam, Age 56 years, He has been in iron and steel trading for the last 30 years. Mr. Kirti Kumar has over 10 years of manufacturing experience also. He has acquired a wide range of experience in all the departments of Steel/Engineering Industry and holds a very sound reputation in Steel/Engineering circles of Mumbai Region. He has very good knowledge of industry and he is main person behind show.

Mr. Vicky Popat, He is a young and dynamic partner of the company. He has started off the trading in steel business under guidance of his uncle Mr. Kirtikurnar Jam. He established good contact in steel industry with direct users and brokers.

Mr. Hemant Shah, has been in iron and steel trading for the last 5 years. He started off with his uncle in steel indenting and broking market. He has acquired a wide range of experience in all the of Steel Industry and holds good contacts among steel industry. He owns property at Masjid Bunder which is being used as godown.

The collateral security being offered by the firm is as under

Particulars	Area	Amount Rs. in Millions
Office No.1 and 3, Plot No. 80B, S.T. Road, Steel Market, Masjid Bunder (East), Mumbai — 400 009 owned by Ajay Gandhi	5000 Built Up	84.000
Total (A)		80.00

Note : valuation of the property is as per the valuation report of M/s Rachna Valuers and Surveyor dated 17-9-2010.

Back ground of Mr. Alay Gandhi, Guarantor

Mr. Ajay Gandhi, aged 43 years, B.Com, Mumbai University, He is a First cousin brother of Mr. Kirtikumar Jain. He is also into trading in steel items since last 15 years. He is instrumental in making contacts with all known brokers and and commission agents and through this network, he has access to many market sensitive information. He has expertise in marketing and broking of steel Items and has been handling marketing of the products of the many reputed companies.

He is resourceful as per his personal balance sheet and he has not borrowed from banks/institution.

They found that partners’/ promoters and guarantor are reputed their field and enjoys sound reputation in market.

Financial Reporting with respect to its achievability of projected

The key past financials of Saralia Steel, proprietorship concern, for the 5 years are as follows:

(Rs. in Millions)

Particulars	2005-06	2006-07	2007-08	2008-09	2009-10
Sales	41.368	89.212	116.270	152.645	222.570
Net Profit	0.752	1.539	2.867	3.845	5.789
Proprietors Capital	8.215	16.218	22.658	27.126	31.568
Current Assets	13.276	22.684	33.735	42.602	59.573
Current Liabilities	5.348	6.915	10.184	15.264	25.680
Net Fixed Assets	0.287	0.449	2.143	2.620	2.687
TOL/ TNW	0.64	0.42	0.51	0.58	0.82
Current Ratio	2.49	3.27	3.33	2.78	2.33

The company has achieved a turnover of Rs 298.800 Millions for 9 months ending December 31st, 2010. And turnover achieved till February 28, 2011 is Rs 385.000 Millions for a period of 11 months.

They found that financial of the firm is sound and having steady growth in sales and profit over a period last 5 years.

The firm did not have any working capital facilities till January 2011. The firm was sanctioned working capital of Rs 60.000 Millions by New India Co-Op. Bank Limited Till then firm was used to rely on market purchase on credit basis.

Firm had applied for cash credit facilities of Rs 75.000 Millions to Bank of Maharashtra with take over of facilities of Rs 60.000 Millions from New India Co-Op. Bank Limited The firm has submitted the following financial projection to BoM.

(Rs. in Millions)

Particulars	31.03.2011	31.03.2012
Net Sales	433.900	542.300
Profit After Tax (PAT)	6.600	8.600
Tangible Net Worth	38.100	46.800
TOL/ TNW	2.08	1.88
Current Ratio	1.44	1.50
NWC	3.52	4.39

The firm has already achieved sale turnover of Rs 385.000 Millions for 11 Months ending February 28, 2011 and)W I be no difficulty in achieving sales of Rs 433.900 Millions and profit of Rs. 6.600 Millions for the year 2010-2011. The firm has seen growth rate of more 50% in sales in past years and looking to that there will be no difficulty in achieving sales of Rs 542.300 Millions and Profit after Tax of Rs. 8.600 Millions for the year 20 11-12. Net profit margin of 1.53 % and 1.59% for both is achievable.

Any adverse movement in prices of finished goods would impact profitability of the firm to the extent of the stock it is carrying. This will also impact the achievability of its projected profit.

Statutory Due Diligence

The status of payment of taxi dues as under

Wages and salaries paid upto	28.02.2011
Sales Taxi VAT paid upto	28.02.2011
Service Tax paid upto	28.02.2011
Income Tax Assessment completed upto and for the year ending	2009-10
Advance Tax paid for the year ending	15.03.2011
Municipal Tax, Octroi paid till etc.	28.02.2011
Disputes not acknowledged as debts	Nil
Contingent Liabilities (Likely to turn into Liabilities)	Nil
Reconciliation of Debtors! creditors	31.12.2010

There are no pending tax/ disputed liabilities remaining to paid.

Market Report

They had meet Mr. Tejas Shah of M/s Ambe Metal Steel Works and Mr. Umesh Palan of M/s Shree Ganesh Steel Industries, Suppliers of M/s Sarlia Steel. Both the parties are dealing with M/s Sarlia Steel for last 4-5 years. They are told by the said suppliers that M/s Sarlia Steel enjoying credit of 30 days from them. But of late, they have started making cash payment to them. When they were buying inon credit basis, generally their payment was regular.

They also meet Mr. Santosh of M/s RD. Steel Corporation and Mr. Vishnu of M/s Bhavin Enterprises, the customer of M/s Sarlia Steel, They received credit period of 3 5-40 days from M/s Sarlia Steel., They also dealings with M/s Sarlia Steel since last 3-4 years. Their dealing with customers are also satisfactory.

In the view, market dealings of Sarlia Steel is Satisfactory

Industry / Trade Report

As subject is engaged with Trading of Steel Products, Steel as Industry is very Large, Steel is one of the most important components for growth and development of an economy. It forms a part of almost each and every product being used by man today, either directly or indirectly. Per capita consumption of steel is considered as a barometer to determine the extent of development of a region. It is noted that developed countries across the world have an average per capita consumption of steel at almost 600 to 700 kilograms, while the average per capita consumption of steel in India is about 22 kilograms only. All developed economies in the world have a strong steel industry, which played a vital role in the growth and development of these economies.

Steel industry has very high growth potential due to high economic development in coming years in India

Bank Dealings

Subject is enjoying cash credit limit of Rs. 60.000 Millions with NEW INDIA CO.OP. BANK LIMITED, Gunbow Street, Fort Branch. They had verified with the bank about conduct of CC accounts and it is found satisfactory... There is no overdue in account. There is no request for temporary overdraft.

The firm also had current accounts with Bank of Baroda and Kotak Mahindra Bank respectively. They verified bank statements of both Current account and are found to be satisfactory.

In the view M/s Sarlia Steel’s bank dealing is Satisfactory

This report is issued at specific request of Bank of Maharashtra.

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NETWORTH STATEMENT AS ON 31.03.2010

MR. AJAY NAGINDAS GANDHI

(Guarantor)

Name of the Guarantor	Mr. Ajay Nagindas Gandhi
Age	44 Years
Residential Address	Flat No-03, Shah Niwas, R R T Road, Mulund, Mumbai-400080, Maharashtra, India
Qualification	Under Graduate
Experience	20 Years
Personal Assets (A)	As on 31.03.2010
	Brief Description	Amount Rs. in Millions
a) Immovable Property	Advance for office at Masjid and Property at Shahpur	31.821
b) Cash and Bank Balance		0.388
c) Motor Car		0.447
d) Investment	Equity investment/ Postal Saving	5.325
e) Deposits with Bank		0.400
f) Loans and Advances	As per Balance Sheet	7.578
g) Other Assets/ Deposits		0.588
Total (A)		46.547
Liabilities (B)
a) Sundry Creditors	As per Balance Sheet	0.462
b) Other Borrowings		29.867
c) Other Current Liabilities		0.846
Total (B)		31.175
NET ASSETS (A-B)		15.372

MR. AJAY GANDHI

BALANCE SHEET

As on 31.03.2010

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		15.372
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		15.372
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		29.866
TOTAL BORROWING		29.866
DEFERRED TAX LIABILITIES		0.000
TOTAL		45.238
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.447
Capital work-in-progress		0.000
INVESTMENT		5.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000
	Sundry Debtors	0.000
	Cash & Bank Balances	0.466
	Other Current Assets	0.848
	Loans & Advances	39.785
Total Current Assets		41.099
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.462
	Other Current Liabilities	0.846
	Provisions	0.000
Total Current Liabilities		1.308
Net Current Assets		39.791
MISCELLANEOUS EXPENSES		0.000
Total		45.238

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NETWORTH STATEMENT AS ON 31.03.2010

MR. HEMANT MAJIBHAI SHAH

(Partner)

Personal Assets (A)	As on 31.03.2010
	Brief Description	Amount Rs. in Millions
a) Immovable Property	Advance for office at Masjid and Property at Shahpur	3.680
b) Cash and Bank Balance		0.260
c) Motor Car		0.276
d) Investment	Equity investment/ Postal Saving	85.962
e) Deposits with Bank		0.500
f) Loans and Advances	As per Balance Sheet	7.225
g) Other Assets/ Deposits		0.707
Total (A)		98.610
Liabilities (B)
a) Sundry Creditors	As per Balance Sheet	0.327
b) Other Borrowings		89.708
c) Other Current Liabilities		0.752
Total (B)		90.787
NET ASSETS (A-B)		7.823

MR. HEMANT SHAH

BALANCE SHEET

As on 31.03.2010

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		7.823
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		7.823
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		89.708
TOTAL BORROWING		89.708
DEFERRED TAX LIABILITIES		0.000
TOTAL		97.531
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.956
Capital work-in-progress		0.000
INVESTMENT		85.561
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000
	Sundry Debtors	0.000
	Cash & Bank Balances	0.760
	Other Current Assets	1.108
	Loans & Advances	7.225
Total Current Assets		9.093
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.327
	Other Current Liabilities	0.752
	Provisions	0.000
Total Current Liabilities		1.079
Net Current Assets		8.014
MISCELLANEOUS EXPENSES		0.000
Total		97.531

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NETWORTH STATEMENT AS ON 31.03.2010

MR. KIRTIKUMAR CHIMANLAL JAIN

(Partner)

Personal Assets (A)	As on 31.03.2010
	Brief Description	Amount Rs. in Millions
a) Immovable Property	Advance for office at Masjid and Property at Shahpur	21.500
b) Cash and Bank Balance		0.352
c) Motor Car		2.457
d) Investment	Equity investment/ Postal Saving	75.250
e) Deposits with Bank		1.000
f) Loans and Advances	As per Balance Sheet	16.071
g) Other Assets/ Deposits		1.021
Total (A)		117.651
Liabilities (B)
a) Sundry Creditors	As per Balance Sheet	1.625
b) Other Borrowings		86.911
c) Other Current Liabilities		1.065
Total (B)		89.601
NET ASSETS (A-B)		28.049

MR. KIRTIKUMAR JAIN

BALANCE SHEET

As on 31.03.2010

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		28.050
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		28.050
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		86.911
TOTAL BORROWING		86.911
DEFERRED TAX LIABILITIES		0.000
TOTAL		114.961
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		98.957
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000
	Sundry Debtors	0.000
	Cash & Bank Balances	1.352
	Other Current Assets	1.271
	Loans & Advances	16.071
Total Current Assets		18.694
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1.625
	Other Current Liabilities	1.065
	Provisions	0.000
Total Current Liabilities		2.690
Net Current Assets		16.004
MISCELLANEOUS EXPENSES		0.000
Total		114.961

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NETWORTH STATEMENT AS ON 31.03.2010

MR. VICKY BHAVANJI POPAT

(Partner)

Personal Assets (A)	As on 31.03.2010
	Brief Description	Amount Rs. in Millions
a) Immovable Property	Advance for office at Masjid and Property at Shahpur	1.250
b) Cash and Bank Balance		0.211
c) Motor Car		0.395
d) Investment	Equity investment/ Postal Saving	32.242
e) Deposits with Bank		0.025
f) Loans and Advances	As per Balance Sheet	1.100
g) Other Assets/ Deposits		0.437
Total (A)		35.660
Liabilities (B)
a) Sundry Creditors	As per Balance Sheet	0.130
b) Other Borrowings		32.092
c) Other Current Liabilities		0.206
Total (B)		32.428
NET ASSETS (A-B)		3.232

MR. VICKY B POPAT

BALANCE SHEET

As on 31.03.2010

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		3.233
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		3.233
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		32.092
TOTAL BORROWING		32.092
DEFERRED TAX LIABILITIES		0.000
TOTAL		35.325
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.645
Capital work-in-progress		0.000
INVESTMENT		32.243
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000
	Sundry Debtors	0.000
	Cash & Bank Balances	0.210
	Other Current Assets	0.461
	Loans & Advances	1.101
Total Current Assets		1.772
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.130
	Other Current Liabilities	0.205
	Provisions	0.000
Total Current Liabilities		0.335
Net Current Assets		1.437
MISCELLANEOUS EXPENSES		0.000
Total		35.325

OPERATING STATEMENT

(Rs. in Millions)

Particulars	2010-11 Estimated	2011-12 Projected
GROSS SALES
Domestic Sales (Trading)	4.339	5.423
Domestic Sales (Manufacturing)	--	--
Add Other revenue income	--	--
Total	4.339	5.423
Excise Duty	--	--
Net Sales	4.339	5.423
% Growth over previous year	95.00	25.00
COST OF OPERATIONS
Raw Material Consumed
Imported	--	--
Indigenous	4.437	5.188
Other Spares Consumed
Imported	--	--
Indigenous	--	--
Power and Fuel	--	--
Direct Labour	--	--
Other Manufacturing Expenses	--	--
Depreciation	0.010	0.016
Sub Total	4.446	5.204
Add: Opening SIP	--	--
Less: Closing SIP	--	--
Cost of Production	4.446	5.204
Add: Opening FG	0.325	0.597
Less: Closing FG	0.597	0.633
Sub Total	4.175	5.168
Selling, General and Administrative Expenses	0.043	0.054
SUB TOTAL	4.218	5.222
OPERATING PROFIT BEFORE INTEREST	0.121	0.201
Interest	0.026	0.078
OPERATING PROFIT AFTER INTEREST	0.095	0.123
OTHER NON OPERATING INCOME
a) Interest Income	--	--
b) Dividend	--	--
c) Export Incentives	--	--
d) Others	0.000	0.000
TOTAL NON OPERATING INCOME	0.000	0.000
OTHER NON OPERATING EXPENSES
a) Provision for guarantee commission	--	--
b) Loss on Sale of Fixed Assets	--	--
c) Foreign exchange loss (MTM)	--	--
d) Project Expenses/ Deferred market expenses written off	--	--
TOTAL NON OPERATING EXPENSES	0.000	0.000
Net of NOI/ NOE	0.000	0.000
Profit Before Tax	0.095	0.123
Provision for Taxes	0.028	0.037
Profit After Tax	0.066	0.086
Dividend Paid	0.000	0.000
Retained Profit	0.066	0.086
Retained Profit (% age)	100.00	100.00
Cash Accruals	0.076	0.102
PBDIT	0.130	0.217
Purchases	4.437	5.188

ANALYSIS OF BALANCE SHEET

(Rs. in Millions)

Particulars	2010-11 Estimated	2011-12 Projected
LIABILITIES
CURRENT LIABILITIES
Short term bank borrowings	--	--
From Applicant Bank	0.750	0.750
From Other Banks	--	--
(BP/BD out of above)	--	--
SUB TOTAL (A)	0.750	0.750
Short term borrowings form others	--	--
Sundry Creditors (Trade)	0.000	0.074
Advance payment from customers/ deposits from dealers	--	--
Provision for taxation	0.028	0.037
Dividend payable	--	--
Other Statutory Liabilities	--	--
Installments of term loan/ Deposit/ DPGs/ Debentures (< 1 Year)	--	--
Other current liabilities (< 1 Year) Carpex payment and others	0.028	0.037
ICD taken	--	--
SUB TOTAL (B)	0.043	0.131
TOTAL CURRENT LIABILITIES	0.793	0.881
Term Liabilities
Debentures (> 1 Year)	--	--
FCCB > 1 Year	--	--
Term Loans (Excluding Installments < 1 Year)	--	--
Sales tax deferrement loan	--	--
Term Deposits	--	--
Other Term Liabilities (unsecured Loans)	--	--
Total Term Liabilities	0.000	0.000
Total outside liabilities	0.793	0.881
NET WORTH
Ordinary Share Capital	0.381	0.468
General Reserve	--	--
Share Premium Account	--	--
Capital Surplus Reserve	--	--
Surplus/ Deficit in P and L Account	--	--
Provision for deferred tax	--	--
NET WORTH	0.381	0.468
TOTAL LIABILITIES	1.175	1.348
ASSETS
CURRENT ASSETS
Cash and Bank Balances	0.004	0.010
FD with Banks	--	--
Investments (Other than long term)	--	--
Government and other securities	--	--
Fixed Deposits with banks	--	--
Receivables (Domestic other than deferred / exports)	0.488	0.610
Receivables (Export including B P/BD)	--	--
Installments of deferred receivables (< 1 Year)	--	--
Inventory: Raw Material (imported)	--	--
Raw Material (Indigenous)	--	--
Stock in Process	--	--
Finished Goods	0.597	0.633
Other spares: Imported	--	--
Other Spares : Indigenous	--	--
Advance to suppliers of RM/ S and S	--	--
Advance payment of Taxes	0.028	0.037
Bills of exchange	--	--
Other Current Assets	0.028	0.030
TOTAL CURRENT ASSETS	1.145	1.320
FIXED ASSETS
Gross Block	0.067	0.082
Depreciation to date	0.038	0.053
NET BLOCK	0.029	0.029
Other non current assets
Investment in subs/ affiliates	0.000	0.000
Investment in others	0.000	0.000
Loans and advances to subs/ affiliates	0.000	0.000
Advances to suppliers of capital goods	0.000	0.000
Deferred receivables (> 1 Year)	0.000	0.000
Capital WIP	0.000	0.000
ICD Given	0.000	0.000
Non Consumable stores and spares	0.000	0.000
Other non current assets (including dues from directors)	0.000	0.000
TOTAL NON CURRENT ASSETS	0.000	0.000
Intangible Assets	--	--
TOTAL ASSETS	1.175	1.349
Tangible net worth	0.381	0.468
Adjusted TNW	0.381	0.468
Net Working Capital	0.352	0.439
Current Ratio	1.44	1.50
TOL/ TNW	2.08	1.88
TTL/ TNW	0.00	0.00
TOL/ Adj. TNW	2.08	1.88
Total Current Assets	1.145	1.320
Other Current Liabilities (Other than Bank Borrowings)	0.043	0.131
Working Capital Gap	1.102	1.189
Net Working Capital	0.352	0.439
Assessed Bank Finance	0.750	0.750
NWC/TCA (%)	30.71	33.25
Bank Finance/ TCA (%)	65.50	56.82
Other CL/ TCA (%)	3.79	9.92
Sundry Creditors/ TCA (%)	0.00	5.61
Receivables/ Gr. Sales (Days)	41.00	41.06

RATIO ANALYSIS

(Rs. in Millions)

Particulars	2010-11 Estimated	2011-12 Projected
Net Sales/ TTA (Times)	3.69	4.02
PBT/ TTA (%)	8.06	9.14
Operating Cost/ NS (%)	97.82	97.73
Bank Finance/ TCA (%)	65.50	56.82
Investment+ Receivables / NS (Days)	91.25	83.65
Investment / N.S. + Receivables/ Gross Sales (Days)	91.25	83.65
Other Ratios
Current Ratio	1.44	1.50
Bank Finance to WCG	0.68	0.63
Debt/ Equity	0.00	0.00
TOL/ TNW	2.08	1.88
Interest coverage ratio	5.01	2.78
Net Profit Margin (%)	1.53	1.59
ROCE (%)	11.08	16.09
Return on Equity	3.414	4.640
Operating Profitability	0.218	0.227
Pre-tax profitability	0.218	0.227
Operating cost/ NS (%)	97.82	97.73
Holding Levels
Raw Material- Imported	--	--
Raw Material- Indigenous	--	--
Stock-in-process	0.000	0.000
Finished Goods	5.162	4.422
Sundry Creditors	0.000	0.521
Domestic Receivables	4.106	4.106

COMPUTATION OF TOTAL INCOME

(Rs. in Millions)

Particulars	Amount	Amount	Amount
Income from Business and Profession
Net Profit as per Profit and Loss Account			5.789
Add: Depreciation as per the company Act			0.468
			6.257
Less: Deprecation as per the Income Tax Act			0.575
			5.682
Total Income			5.682
Rounded off			5.682
Tax on Total Income		1.704
Add: Surcharge @ 10%		--
Add: 2% education cess		0.051
Tax Payable		1.755
Less: Advance Tax
June	0.400
September	0.433
December	0.433
March	0.475	1.741
Total Tax payable		0.015
Add: Interest		0.000
Less: TDS		0.000
Refund due/ Payable (refund)		0.015

VALUATION REPORT

A. Property Description

Basement + Ground + 2 floors storied Commercial building known as “Steel Yard Private Limited,” constructed on Plot bearing Plot No. 80B, Steel Market, Near Masjid Railway Station, Sant Tukaram Road, Masjid (E), Mumbai — 400 009, Maharashtra.

B. Documents available for perusal

Agreement Copies

C. Date of Inspection

16.09.2010

Locality

The building is located in a upper middle class locality of Masjid (E). Nearest railway station is Masjid Bunder (C. Rly) and it is a walkable distance from the building. The locality is well connected by roads with taxis and buses easily available from various points of the city”upto the particular locality. Civic amenities such as banks, markets, schools, etc are within a radius of 1 — 2 kms from the building. The locality compromises of commercial building occupied by Steel Traders as well as manufactures.

Building

The building is B + G +2 storied RCC framed structure with beams, columns, etc resting on RCC foundation with RCC slab roofing. As on date of inspection, the building is found to be in well maintained condition. The compound of the estate is paved with a 3 to 4 mts height BB I MS compound wall with M.S. gate at the entrance.

As per the inspection done of the buTkiing, no major cracks were visible. Based on the experience and inspection, they estimate the future life of the building, subject to proper repairs and maintenance as 35—40 years.

Premises/ Building:

The building under consideration for valuation are located on Basement + Ground + 2 storied building. As on date of inspection the premises were found to be under purchaser’s possession. As per verified by document copy provided to us, built up area of the each floor works out to

Mezzanine Floor	Built up Area
Basement and Ground Floor	3000 sq.ft.
First Floor	2000 sqft.
Second Floor	2000 sq.ft.
Total Area	7000 sq.ft.

The floor to floor height of the premises is 12 ft. The premises has Kota stone I Shahabad stone I Mosaics tiles flooring, wooden doors, aluminum I MS framed glazed windows, casing wiring, 230/150 mm thick burnt brick masonry wall plastered and white washed. There are 2 no. wc present within each floor of the building.

Photographs:

A brief idea of the premises as well as of the building can be had from the photographs attached along with.

Valuation motivation:

Market value is the estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller in an arms length transaction after proper marketing wherein the parties ha each acted knowledgably, prudently and without compulsions.

For the purpose of valuation, they have adopted the Comparable sale method of valuation, which they define as direct comparison of similar properties and making necessary adjustments with the subject so as to determine the value that the market would place on it It is based on the principle of substitution and holds that the buyer will not be prepared to pay more for the subject premises than the price which alternative comparable premises could be purchased.

Based on the research and information collected, they are of the opinion that the fair market rates for similar type of premises are varying anything around Rs.0.015 Million/- per sqfts to Rs.0.020 Million /- per sq. ifs for commercial premises in the vicinity.

Valuation

They in the opinion, taking cognizance of the facts as stated above, marketability, well developed locality, proximity to railway station as well as civic amenities, year of construction of the building, physical condition I life of the building, location of the building technical details of the building as well as of the premises under consideration for valuation, built up area of the each floor and various other information gathered in this regard, ascertain the fair market value of the aforesaid property as

Basement and Ground Floor = 3000 sq.ft. X Rs. 18000/- sq.ft. = Rs. 54.000 Millions

First Floor = 2000 sq.ft X Rs. 16000/- per sq.ft. = Rs. 32.000 Millions

Second Floor = 2000 sq.ft. X 15000/- per sq.ft. = Rs. 30.000 Millions

Total = Rs. 116.000 Millions

Distress sale value:

Considering the factors as stated above they are of the opinion that the distress sale value of the aforesaid premises would be about 15% less than the fair market value, i.e.l Rs. 100.000 Millions

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

Trade References:

· Ambe Metal Steel Works

Address: 80-B, S.T. Road, Steel Market, Masjid (East), Mumbai-400009, Maharashtra, India

Contact No.: 91-9930976881 (Mr. Tejas Shah)

· Classic Steel Rolling Mill

Address: 103, Dalamal Tower, Nariman Point, Mumbai-400021, Maharashtra, India

Contact No.: 91-22-67399999

Contact Person: Mr. Pritesh Mehta (Vice President Marketing)

· BA Corporation

Address: 402, Panchali Shopping Centre, Opposite Nagrik Store, Station Road, Thana (West), Maharashtra, India

Contact No.: 91-9820305002 (Mr. Hemant Dedhia) (Manager- Purchase)

· Rakesh Enterprises

Address: 203, Maker Chamber V, Nariman Point, Mumbai-400021, Maharashtra, India

Contact No.: 91-9321736953

Fixed Assets:

· Office Equipments

· Furniture and Fixtures

· Computers

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.44.52
UK Pound	1	Rs.72.71
Euro	1	Rs.64.41

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.