MIRA INFORM REPORT

Report Date :

21.04.2011

IDENTIFICATION DETAILS

Name :	JAYCEE STEELS PRIVATE LIMITED
Registered Office :	16/867, Joshi Road, New Delhi-110005
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	10.07.1986
Com. Reg. No.:	55-024781
CIN No.: [Company Identification No.]	U74899DL1986PTC024781
IEC No.:	0503037460
PAN No.: [Permanent Account No.]	AABCJ2626B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Auto Parts, Graded CI, NI-Hard and Steel Castings.

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 old and established company in its field. Based on the financial the company’s position is weak. Directors are however reported as having satisfactory means of their own. The valuation report provided 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

INFORMATION PARTED BY

Name :	Mr. Sudhakaran
Designation :	Accounts Manager
Contact No.:	91-9717499773
Date :	20.04.2011

LOCATIONS

Registered Office :	16/867, Joshi Road, New Delhi-110005, India
E-Mail :	narangml@hotmail.com jaycee_steel@hotmail.com
Factory :	B-25, Site No. 1, Blulandshahar Road, Industrial Area, Ghaziabad, Uttar Pradesh, India
Tel. No.:	91-120-2866164
Fax No.:	91-120-2866163
E-Mail :	jaycee_steel@hotmail.com
Website:	http://www.diamondeylinders.com
Area :	13667 Sq.yards (Owned)

DIRECTORS

As on 27.09.2010

Name :	Mrs. Shakti Sachdeva
Designation :	Director
Address :	KF-2, Kavi Nagar, Ghaziabad-201001, Uttar Pradesh, India
Date of Birth/Age :	09.01.1960
Qualification :	Post Graduate
Experience :	20 Years
Date of Appointment :	01.11.2009
DIN No.:	00202086
Name :	Mr. Brij Mohan Sachdeva
Designation :	Director
Address :	KF-2, Kavi Nagar, Ghaziabad-201001, Uttar Pradesh, India
Date of Birth/Age :	53 Years
Qualification :	Engineering (Graduate)
Experience :	30 Years
Date of Appointment :	29.05.1996
DIN No.:	00167464
Name :	Mr. Gurucharan Dass Sachdeva
Designation :	Director
Address :	KF-2, Kavi Nagar, Ghaziabad-201001, Uttar Pradesh, India
Date of Birth/Age :	23.02.1925
Date of Ceasing:	01.11.2009
DIN No.:	00167456

KEY EXECUTIVES

Name :	Mr. Sudhakaran
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2010

Names of Shareholders	No. of Shares
Shakti Sachdeva	25190
B M Sachdeva	42680
Karan Sachdeva	12410
Varun Sachdeva	12400
Ashwani	10
Surender Pal Singh	10
Brij Mohan Sachdeva HUF	13000
G D Sachdeva and B M Sachdeva	650
Raj Karan Sachdeva and Shakti Sachdeva	650
Zech Engineers Private Limited, Ghaziabad, Uttar Pradesh, India	29100
Total	136100

As on 14.02.2011

List of Allottees	No. of Shares Allotted
Shakti Sachdeva	12000
B M Sachdeva	26000
Karan Sachdeva	10000
Varun Sachdeva	10000
Brij Mohan Sachdeva-HUF, Merrut, India	6000
Total	64000

Equity Share Breakup (Percentage of total Equity)

As on 30.09.2010

Category	Percentage
Bodies corporate	21.00
Directors or relatives of Directors	79.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Auto Parts, Graded CI, NI-Hard and Steel Castings.

Products :

Product Description	ITC Code
Casting	7325.10

Exports :

Products :

Through Merchan Exporters Cylinder Blocks

Countries :

• Sudan
• France

Terms :

Selling :

Credit (90 Days)

Purchasing :

Credit (90 Days)

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Installed Capacity	Actual Production
Cylinder Blocks	Nos.	300000	167483
Rough Castings	Mt.	1000	646
Cylinder Kits	Nos.	--	93239

GENERAL INFORMATION

Customers :

Wholesalers, End Users and OEM’s

No. of Employees :

Approximately 150 (Office 30, Factory 130)

Bankers :

• Indian Bank, 3, Navyug Market, Ghaziabad-245208, Uttar Pradesh, India
• Corporation Bank- Nd- Connaught Circus Branch

Facilities :

Secured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
a) From India Bank
Term Loan (Repayable within a year Rs. 4.719 Millions (Previous year Rs. 3.457 Millions)	4.443	6.505
Interest Accrued and due	0.045	0.072
Cash Credit	11.949	12.129
Total	16.437	18.706
Note: 1) The above loans are secured by way of equitable mortgage of factory land and building situated at B-25, B.S. Road Industrial Area, Ghaziabad and also by way of hypothecation of all stocks, book debts and entire block of assets of the company. 2) The aforesaid loans are also secured by way of personal guarantee of all directors of company
Unsecured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
From Share holders (Including Rs. 1.355 Millions Directors previous year nil)	1.930	1.609
From companies	4.684	5.161
Total	6.614	6.770

Banking Relations :	--
Auditors :
Name :	B K Kapur and Company Chartered Accountant
Address :	17, Navyug Market, Ghaziabad-201001, Uttar Pradesh, India
Tel. No.:	91-120-2790947/ 2790951
Fax No.:	91-120-2790947
Associates/Subsidiaries :	Sachdeva Auto Engineering Private Limited Address: C-231, B.S. Road, Industrial Area, Ghaziabad, Uttar Pradesh, India Activity: Manufacturer of Automobile Spare Parts.

CAPITAL STRUCTURE

As on 27.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs. 100/- each	Rs. 25.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
200100	Equity Shares	Rs. 100/.- each	Rs. 20.010 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
140000	Equity Shares	Rs. 100/- each	Rs.14.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
136100	Equity Shares	Rs. 100/.- each	Rs. 13.610 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		13.610	13.610	13.610
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		6.489	4.312	3.410
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		20.099	17.922	17.020
LOAN FUNDS
1] Secured Loans		16.437	18.706	14.595
2] Unsecured Loans		6.614	6.770	7.397
TOTAL BORROWING		23.051	25.476	21.992
DEFERRED TAX LIABILITIES		0.933	0.708	0.930
TOTAL		44.083	44.106	39.942
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		31.388	24.976	25.197
Capital work-in-progress		0.850	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	9.415	7.425	8.341
	Sundry Debtors	36.736	31.884	27.575
	Cash & Bank Balances	0.604	0.584	0.611
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	4.768	4.172	3.583
Total Current Assets		51.523	44.065	40.110
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	30.744	20.154	21.632
	Other Current Liabilities	8.934	4.789	3.753
	Provisions
Total Current Liabilities		39.678	24.943	25.385
Net Current Assets		11.845	19.122	14.725
MISCELLANEOUS EXPENSES		0.000	0.008	0.020
TOTAL		44.083	44.106	39.942

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	129.920	114.868	87.991
		Other Income	2.333	0.880	1.613
		TOTAL	132.253	115.748	89.604
Less	EXPENSES
		Material and Manufacturing	106.977	94.664	72.273
		Employees’ remuneration and benefits	9.242	7.189	6.507
		Administration, Finance and Others	8.336	8.981	6.204
		Preliminary Expenses written off	0.008	0.012	0.012
		TOTAL	124.563	110.846	84.996
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		7.690	4.902	4.608
Less/ Add	DEPRECIATION/ AMORTISATION		4.301	3.456	3.326
	PROFIT BEFORE TAX		3.389	1.446	1.282
Less	TAX		1.212	0.545	0.384
	PROFIT AFTER TAX		2.177	0.901	0.898
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		4.311	3.410	2.512
	BALANCE CARRIED TO THE B/S		6.488	4.311	3.410
	Earnings Per Share (Rs.)		15.99	--	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.65	2.95	1.00
Net Profit Margin (PBT/Sales)	(%)	2.61	1.26	1.46
Return on Total Assets (PBT/Total Assets}	(%)	4.09	2.09	1.96
Return on Investment (ROI) (PBT/Networth)		0.17	0.08	0.08
Debt Equity Ratio (Total Liability/Networth)		3.12	2.81	2.78
Current Ratio (Current Asset/Current Liability)		1.30	1.77	1.58

LOCAL AGENCY FURTHER INFORMATION

OPERATING STATEMENT

(Rs. in Millions)

Particulars	2010-11 Projected	2011-12 Projected
1. Gross Sales
i) Domestic Sales	207.975	302.700
ii) Export Sales	0.000	0.000
Total	207.975	302.700
2. Less: Excise Duty	0.000	0.000
3. Net Sales (1-2)	207.975	302.700
4. % age rise (+) or fall (-) in net sales as compared to previous year	60.08	45.55
5. Cost of Sales
i) Raw Material including stores and other items used in the process of manufacture
a) Imported	0.000	0.000
b) Indigenous	112.279	173.981
ii) Other Spares
a) Imported	0.000	0.000
b) Indigenous	33.276	49.946
iii) Power and Fuel	32.500	40.000
iv) Direct Labour (Factory wages and salaries)	10.800	12.420
v) Other Manufacturing expenses	7.500	10.000
vi) Depreciation	5.395	5.913
vii) Sub Total ( i to vi)	201.750	292.260
viii) Add: Opening Stock in Process	1.636	10.969
Sub Total	203.386	303.229
ix) Deduct: Closing Stock in Process	10.969	22.721
x) Cost of Production	192.417	280.508
xi) Add: Openings Stock of Finished Goods	6.069	7.835
Sub Total	198.486	288.343
xii) Deduct: Closing Stock of Finished Goods	7.835	15.687
SUB TOTAL (TOTAL COST OF SALES)	190.651	272.656
6. Selling, General and Administrative Expenses	8.080	9.627
7. Sub Total (5+6)	198.731	282.283
8. Operating Profit before Interest (3-7)	9.244	20.417
9. Interest	2.650	8.663
10. Operating Profit after Interest	6.594	11.754
11 i) Add other non operating income
a. Other	2.000	2.000
b. Exchange Gain	--	--
c. Commission	--	--
Sub Total (Income)	2.000	2.000
ii) Deduct other Non Operating Expenses
a. Preliminary Expenses	0.000	0.000
Sub Total (Expenses)	0.000	0.000
iii) Net of Other non-operating income/ expenses (net of 11(i) and 11(ii))	2.000	2.000
12. Profit (Loss) before tax ( 10+11(iii))	8.594	13.754
13. Provision for taxes	2.578	4.126
14. Net Profit/ Loss (12-13)	6.016	9.628
15. a. Equity Dividend	0.000	0.000
b. Dividend Tax	--	--
c. Dividend Rate	--	--
16. Retained Profit	6.016	9.628
17. Retained Profit/ Net Profit (% age)	100	100

ANALYSIS OF BALANCE SHEET

(Rs. in Millions)

Particulars	2010-11 Projected	2011-12 Projected
CURRENT LIABILITIES
1. Short term borrowings from banks (including s bills purchase, discounted and excess borrowing placed on repayment basis)
i) From Applicant Bank	30.000	55.000
ii) From other banks	0.000	0.000
iii)l (of which BP and BD)	--	--
Sub – Total (A)	30.000	55.000
2. Short term borrowing from others	0.000	0.000
3. Sundry Creditors (Trade)	16.807	17.027
4. Advance payment from Customers/ dealers	0.000	0.000
5. Provision fro Taxation	0.000	0.000
6. Dividend Payable	0.000	0.000
7. Other Statutory liabilities (due within one year)	0.000	0.000
8. Deposits/ Debentures/ installment of term loans/ DPG’s etc. (due within one year)	1.945	2.446
9. Other current liabilities and provisions (due within one year) (Specify major items)	2.500	4.500
Sub Total (B)	21.252	23.973
10. Total Current Liabilities (Total of 1 to 9)	51.252	78.973
TERM LIABILITIES
11. Debentures (not maturing within one year)	0.000	0.000
12. Preference Shares (redeemable after one year)	0.000	0.000
13. Term Loans form banks	3.497	6.493
14. Deferred payment credits (Excluding installments due within one year)	0.000	0.000
15. Term Loans from NBFC’s (Repayable after one year)	1.328	0.886
16. Other Term Liabilities	0.000	0.000
17. TOTAL TERM LIABILITIES (Total of 11 to 16)	4.825	7.379
18. TOTAL OUTSIDE LIABILITIES ( 10+17)	56.077	86.352
NETWORTH
19. Ordinary Share Capital	20.000	22.500
20. General Reserve	12.504	22.133
21. Deferred Tax Liability	0.932	0.932
22. Unsecured Loans/ Share Application (From Directors and Relatives)	16.000	16.000
23. Surplus (+) or Deficit (-) in Profit and loss account	0.000	0.000
24. NET WORTH	49.436	61.565
25. TOTAL LIABILITIES ( 18+24)	105.513	147.917
CURRENT ASSETS
26. Cash and Bank Balance	0.934	5.038
27. Investment (Other than long term investment)
i. Government and Other Trustee security	0.000	0.000
ii. Fixed Deposit with bank	0.000	0.000
28 i) Receivables other than deferred and exports (including bills purchase and discounted by Bk)	34.996	50.783
ii) Export Receivables (Including bills purchased/ discounted by banks)	0.000	0.000
29. Installment of deferred receivables (due within 1 year)	0.000	0.000
30. Inventories
i) Raw Materials (Including stores and other terms used in the process of manufacture)
a. Imported	0.000	0.000
b. Indigenous	11.205	17.027
ii) Work in process	10.969	22.721
iii) Finished Goods	7.835	15.687
iv) Other Consumable Stores
a. Imported	0.000	0.000
b. Indigenous	0.000	0.000
31. Advance to suppliers of Raw Material and stores and spares	0.000	0.000
32. Advance payment of taxes	0.000	0.000
33. Other current assets (Specify major items)	5.000	10.000
34. Deferred Tax Assets	0.000	0.000
35. TOTAL CURRENT ASSETS (Total of 26 to 34)	70.939	121.256
FIXED ASSETS
35. Gross Block (Land and Building, Machinery, Work in Progress)	63.465	63.465
36. Depreciation to dated	30.891	36.804
37. NET BLOCK (35-36)	32.574	26.661
OTHER NON CURRENT ASSETS
38. Investments/ Book Debts / Advance/ Deposits which are not current assets
i) a. Investments in subsidiary companies/ affiliates	0.000	0.000
b. Others	0.000	0.000
ii) Advance to suppliers of capital goods and contractors	2.000	0.000
iii) Deferred receivables (maturity exceeding one year)	0.000	0.000
iv) Margin money	0.000	0.000
v) Earnest Money	0.000	0.000
39. Non-consumables store and spares	0.000	0.000
40. Other non –current assets (including dues from Directors)	0.000	0.000
41. TOTAL OTHER NON- CURRENT ASSETS (Total 38 to 40)	2.000	0.000
42. Intangible assets (patents, goodwill, preliminary expense, bad/ doubtful debts not provided for)	0.000	0.000
43. TOTAL ASSETS (34, 37, 41 and 42)	105.513	147.917
44. TANGIBLE NET WORTH (24-42)	49.436	61.565
45. NET Working Capital (17+24) – (37+41+421) to tally with (34-10)	19.687	42.283
46. Current Ratio (Item 34/10)	1.38	1.54
47. Total outside Liabilities/ Tangible Net Worth (18/44)	1.13	1.40
ADDITIONAL INFORMATION
A. Arrears of Deprecation	0.000	0.000
B. Contingent Liabilities:
i) Arrears of cumulative dividends	0.000	0.000
ii) Gratuity liability not provided for	0.000	0.000
iii) Disputed excise/ customs/ tax liabilities	0.000	0.000
iv) Other liabilities not provided for	0.000	0.000

COMPARATIVE STATEMENT OF CURRENT ASSETS AND LIABILITIES

(Rs. in Millions)

Particulars	2010-11 Projected	2011-12 Projected
A. CURRENT ASSETS
1. Raw Material (Including stores and other items uses in the process of manufacture)
a. Import	0.00	0.00
Months’ Consumption
b. Indigenous-	11.205	17.027
Months’ Consumption	1.21	1.19
2. Other Consumable spares, excluding those included in 1 above
a. Import-	0.000	0.000
Months’ Consumption	--	--
b. Indigenous-	0.000	0.000
Months’ Consumption	--	--
3. Stock in Process- Months’	10.969	22.721
Cost of Production
4. Finished Goods – Months’	7.835	15.687
Cost of Sales	0.50	0.70
5. Receivables other than export and deferred receivables (including bills purchased and discounted by bank)	34.996	50.783
Months’ Domestic sales – excluding deferred payment sale	2.05	2.04
6. Export Receivables (including bills purchased and discounted (Months’ export sales)	0.000	0.000
7. Advances to suppliers of Raw Material and Stores/ Spars and consumables)	0.000	0.000
8. Other Current assets including cash and bank balance and deferred receivables due within one year)	5.934	15.038
9. TOTAL CURRENT ASSETS (Other than Margin Money on Guarantees)	70.939	121.256
B. CURRENT LIABILITIES (Other than Bank Borrowings for Working Capital)
10. Creditors for purchase of Raw Materials, Stores and Consumable Spares	16.807	17.027
Months’ Purchase	1.82	1.19
11. Advance from Customers	0.000	0.000
12. Statutory Liabilities	0.000	0.000
13. Other Current Liabilities (Specify major items), Short term Borrowings, unsecured loans, dividend payable, installment of term loan, DPG, Public Deposits, Debenture etc.	4.445	6.946
14. Total (to agree with sub total B form III)	21.252	23.973

COMPUTATION OF MAXIMUM PERMISSIBLE BANK FINANCE OR WORKING CAPITAL

(Rs. in Millions)

Particulars	2010-11 Projected	2011-12 Projected
1. Total Current Assets	70.939	121.256
2. Other Current Liabilities ( Other than Bank Borrowings)	21.252	23.973
3. Working Capital Gap (WCG) (1-2)	49.687	97.283
4. Minimum Stipulated net Working Capital i.e. 25% of Total Current Assets as the case may be depending upon the method of lending being applied (Export receivables to be excluded under both the methods)	17.735	30.314
5. Actual / Projected Net Working Capital	19.687	42.283
6. Item 3 minus Item 4	31.952	66.969
7. Item 3 minus Item 5	30.000	55.000
8. Maximum permissible bank finance (Item 6 or 7, whichever is lower)	30.000	55.000
9. Excess Borrowings Representing shortfall in NWC (4-5)	0.000	0.000

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

STATEMENT OF ASSETS AND LIABILITIES

MRS. SHAKTI SACHDEVA

(DIRECTOR)

IMMOVABLE

Place	Address	Property Details (Area)	Owner (Self Occupied or not)	Present market value/ Org. Cost	Share in the Property
Ghaziabad	KF2 Kavi Nagar	1422 sq. yards	Self	Rs. 16.000 Millions	50%
	B- 195 Lohia Nagar	550 sq. yards	Rented	Rs. 8.000 Millions	50%

MOVABLE

Description	Amount
Investment in
a) Principle Firm (Borrower)	Rs. 2.500 Millions
b) Other Firms	Rs. 9.200 Millions
Balance with bank/ Cash iun hand	Rs. 0.006 Million
Life Insurance/ Surrender Value	Rs. 2.200 Millions
Jewellery	Rs. 1.000 Millions
Total	Rs. 14.906 Millions

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

STATEMENT OF ASSETS AND LIABILITIES

MR, BRIJ MOHAN SACHDEVA

(DIRECTOR)

IMMOVABLE

Place	Address	Property Details (Area)	Owner (Self Occupied or not)	Present market value/ Org. Cost	Share in the Property
Ghaziabad	B- 195 Lohia Nagar	550 sq. yards	Rented	Rs. 8.000 Millions	50%

MOVABLE

Description	Amount
Investment in
a) Principle Firm (Borrower)	Rs. 4.300 Millions
b) Other Firms	Rs. 2.000 Millions
Any other Assets PPF	Rs. 0.200 Million
Balance with bank/ Cash iun hand	Rs. 1.600Million
Life Insurance/ Surrender Value	Rs. 1.600 Millions
Total	Rs. 9.700 Millions

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

VALUATION REPORT

INDUSTRIAL PROPERTY AT PLOT NO. B-25

PART A- BASIC DATA

Purpose for which valuation is made	To determine the fair market value
Date on which property was inspected	17.02.2011
Name of the proposed owner/ owners	Jaycee Steels Private Limited
Is the property is under Joint ownership?	No.
Location of the property	Plot No. B-25, Site-I, Bulandshahar Road, UPSIDC Industrial Area, Ghaziabad-201001, Uttar Pradesh, India
Boundary	North East: B 24 North West: Road South East: C83, C-84 and C-85 South West: B-26
Brief description of the property	Property under valuation is a single story industrial building of normal specification in an industrial area developed by U P Industrial Developments Corporation with all industrial infrastructures. The property comprises 13667 sq.yd or 11427.35 sq.mt. land and 3386.05 sq.mt. building
Is the property situated in residential/ commercial/ industrial/ mixed area	Industrial Area
Classification of the locality: High Class/ Middle Class/ Poor Class	Middle Class
Proximity of civil amenities like schools, hospitals, offices, market and cinema etc.	All in the vicinity
Means and proximity to surface communication by which the locality is served	All surface transport available
Area of land	11427.35 sq.mt.
Year of construction	As reported the building was raised in phases form 1998 to 2004
Prevailing land rate in the area	Prevailing land rate of similar properties in the area is in between Rs. 0.010 Millions to Rs. 0.015 Million per sq.mt.
Is there any restrictive covenant in regard to use? If so, details be given	Industrial Use
Does the are fall in an area included in any development plan of the government or any statutory body? If so give particulars.	Yes under UPSIDC master plan
Has the whole or part of the land been notified for acquisition by government or any statutory body? Give gate of the notification	No such information has come to notice till date
Verification of title deed/ legal opinion	The legal aspect has not been covered under this report. If required, the same may be obtained form the law professional.

PART B- TECHNICAL DETAILS OF THE BUILDING

Number of Floors	Ground
Covered area	3386.05 sq.mt.
Year of Construction	AS reported the building was raised in phase from 1998 to 2004
Type of Construction: Load bearing walls/ RCC framed structure/ Steel Frame	Steel/ RCC framed structure
Type of foundation	Isolated column footing/ spread foundation
Walls	9” thick brick work
Doors and Windows	Glazed/ Wooden
Flooring	Complete
Finishing	Plastered
Roofing	AC Sheet/ RCC
Electrical Wiring/ fitting	Concealed conduit
Whether there are any special / costly fittings	No.

PART – C VALUATION DETAILS

FAIR MARKET VALUE OF THE PROPERTY
VALUATION OF LAND
A market survey of in the area was conducted and discussions were made with the property consultants, sub-Registrar of the area and officials of the land owing agency (Uttar Pradesh State Industrial Development Corporation) It has been observed that the land rate of similar properties in the area is in between Rs. 0.010 Million to Rs. 0.015 Million per sq. mt. Based on size, shape, location, prevailing macroeconomic indication and the judgement, the rate of the land under valuation may be considered as Rs. 0.013 Million per sq. mt.
Land Area	11427.35 sq.mt
Land rate adopted fro the valuation	Rs. 12500.00 per sq. mt.
Market Value of Land	11427.35 X 12500.00
	Rs. 142.842 Millions
SAY Rs. 142.842 Millions----------------------------------------------- (A)
VALUATION OF BUILDING
Total Covered Area	3386.05 sq.mt.
Average plinth area rate of construction	Rs. 5000.00 per sq.mt.
Cost of Construction	3386.05 X Rs. 5000.000
	Rs. 16.930 Millions
Year of the construction of the building	As reported the building was raised in phase form 1998 to 2004
Age of the building	The average age of the building may be considered as 10 years for calculation purpose
Remaining life of the building	40 years (with property maintenance and retro-fittings)
Depreciation for	10 years9/10 X 10/50 X 100 : 18.00 %
Amount of Depreciation	Rs. 3.047 Millions
Depreciated value of building	Rs. 13.883 Millions
SAY RS. 13.883 MILLIONS------------------------------------------------------ (B)
TOTAL MARKET VALUE OF THE PORPERTY	A + B = Rs. 142.842 Millions + Rs. 13.883 Millions = Rs. 156.725 Millions
SAY RS. 156.500 MILLIONS
DISTRESS SALE VALUE Considering the structure fro specific industry, the distress/ forced sale value is estimated at Rs. 109.500 Millions. This is around 70% of the fair market value.

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

Trade References:

· Diamond Auto Industries

Address: C-35, Meerut Road Industrial Area, Ghaziabad, Uttar Pradesh, India

Contact Person: 91-9810026997 (Mr. Subhash Sachdeva)

· Supreme Alloys Limited

Address: 28 to 33, CN 112 to 132, Massuri Gulawati Road, UPSIDC Industrial Area, Ghaziabad, Uttar Pradesh, India

Contact Person: 91-9810004325 (Mr. J K Arora)

Bankers Charges Report as per Registry

Corporate identity number of the company	U74899DL1986PTC024781
Name of the company	JAYCEE STEELS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	16/867, Joshi Road, New Delhi-110005, India
This form is for	Creation of Charge
Type of charge	Immovable Property
Particular of charge holder	Indian Bank, 3, Navyug Market, Ghaziabad-245208, Uttar Pradesh, India e-mail: carishikapoorroc@yahoo.co.in
Nature of instrument creating charge	Sanction Ticket Letter from Party to Bank confirming Extension of Equitable mortgage for Rs. 20.000 Millions dated 14.09.2010
Date of instrument Creating the charge	14.09.2010
Amount secured by the charge	Rs. 20.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Sec OD : Base Rate + 2.75% + 0.50 i.e. 11.25% MTL I II III and IV base Rate + 3.25% + 0.50 i.e. 11.755 with monthly rests. Terms of Repayment Sec L OD yearly renewal MTL I II III : as per existing terms MTL IV: repayment of 36 months, 3 months holiday period, Rs. 0.068 Million per month installment plus interest commencing from December 2010 Margin Sec OD : 25% MT I II III IV: 25% Extent and Operation of the charge 100% in favour of bank
Short particulars of the property charged	Equitable mortgage at factory land and building situated at B-25, Site No. -1, Bulandshahr Road, Industrial Area, Ghaziabad in the name of the company.

Fixed Assets:

· Leasehold Land

· Building

· Plant and Machinery

· Laboratory Equipments

· Electric Installation

· Furniture and Fixture

· Office Equipments

· Tools and Impliments

· D.G. Sets

· Tube Well

· Air Conditioner

· Computer

· Vehicles

· Water Cooler

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.38
UK Pound	1	Rs.72.56
Euro	1	Rs.63.92

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.