MIRA INFORM REPORT

Report Date :

23.02.2011

IDENTIFICATION DETAILS

Name :	MELVIN INTERNATIONAL
Registered Office :	No. 28/1, 9^th Cross Road, Sengutha Puram, District Karur-639002, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	09.02.2007
IEC No.:	3207002919
PAN No.: [Permanent Account No.]	AAOFM1176F
Legal Form :	Partnership Concern with an unlimited liability of the partners.
Line of Business :	Manufacturer and Distributor of Cotton Textiles, Table Wear, Kitchen Wear like Towel, Appren etc.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	No Complaints
Litigation :	Clear
Comments :	Subject seems to be a relatively new concern having moderate track. Trade relations are reported as fair. No complaints have been heard from market and indirect 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. A M Ravi
Designation :	Managing Partner
Contact No.:	91-9443121548
Date :	01.02.2011

LOCATIONS

Registered Office/ Factory :	No. 28/1, 9^th Cross Road, Sengutha Puram, District Karur-639002, Tamilnadu, India
Tel. No.:	91-4324-266548/ 237555
Mobile No.:	91-9443121548 (Mr. A M Ravi)
E-Mail :	amravi@melvininteranational.com melvinravi@gmail.com
Website :	http://www.melvininternational.com
Area :	4800 sq.ft. (Rented)

PARTNERS

Name :	Mr. A M Ravi
Designation :	Managing Partner
Address :	Valluar Nagar, Malaikovilur, Moolappatti (PO), Karur, Tamilnadu, India
Date of Birth/Age :	40 Years
Qualification :	Diploma in Handloom Technology
Experience :	18 Years
Name :	Mrs. R Menaga
Designation :	Partner
Address :	Valluar Nagar, Malaikovilur, Moolappatti (PO), Karur, Tamilnadu, India
Date of Birth/Age :	33 Years
Qualification :	Msc. Bed (Maths)

BUSINESS DETAILS

Line of Business :	Manufacturer and Distributor of Cotton Textiles, Table Wear, Kitchen Wear like Towel, Appren etc.
Exports :
Products :	All Manufactured Items
Countries :	USA
Terms :
Selling :	L/C, Cash and Credit ( 30 Days)
Purchasing :	Cash and Credit ( 30 Days)

GENERAL INFORMATION

Customers :	Wholesalers
No. of Employees :	Approximately 10
Bankers :	Corporation Bank, Karur, Tamilnadu, India

Banking Relations :	--
Auditors :
Name :	R P Hari Chartered Accountant
Address :	Karur, Tamilnadu, India

CAPITAL STRUCTURE

Capital Investment :
Owned :	Rs. 0.263 Million
Borrowed :	Rs. 0.602 Million
Total :	Rs. 0.865 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		0.263	0.185	0.150
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
5] God’s A/C		0.001	0.001	0.001
NETWORTH		0.264	0.186	0.151
LOAN FUNDS
1] Secured Loans		0.600	0.800	0.550
2] Unsecured Loans		0.002	0.782	1.010
TOTAL BORROWING		0.602	1.582	1.560
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		0.866	1.768	1.711
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.097	0.041	0.014
Capital work-in-progress		0.000	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	4.196	3.020	1.974
	Sundry Debtors	2.711	1.762	0.000
	Cash & Bank Balances	0.172	0.684	0.073
	Other Current Assets	0.298	0.142	0.014
	Loans & Advances	0.018	0.010	0.010
Total Current Assets		7.395	5.618	2.071
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6.626	3.891	0.374
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	0.000	0.000	0.000
Total Current Liabilities		6.626	3.891	0.374
Net Current Assets		0.769	1.727	1.697
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		0.866	1.768	1.711

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	27.343	21.833	2.330
		Other Income	1.871	1.569	0.203
		TOTAL	29.214	23.402	2.533
Less	EXPENSES
		Cost of Goods Sold	12.562	12.696	0.122
		Dyeing Charges	3.591	2.356	0.780
		Stitching Charges	1.469	1.072	0.514
		Embroidery Charges	1.185	0.000	0.000
		Packing Material	2.209	1.123	0.000
		Sample Expenses	0.403	0.150	0.001
		Exchange Rate Difference	0.100	0.000	0.000
		Electricity Charges	0.049	0.018	0.013
		Insurance	0.026	0.010	0.000
		Interest	0.223	0.195	0.061
		Salary	0.354	0.261	0.067
		Shipping Charges	0.285	0.228	0.067
		Other Expenses	5.975	5.250	0.886
		TOTAL	28.431	23.359	2.511
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		0.108	0.043	0.022
Less/ Add	DEPRECIATION/ AMORTISATION		0.033	0.022	0.019
	NET PROFIT		0.075	0.021	0.003

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.26	0.09	0.12
Net Profit Margin (PBT/Sales)	(%)	0.27	0.10	0.13
Return on Total Assets (PBT/Total Assets}	(%)	1.00	0.37	0.14
Return on Investment (ROI) (PBT/Networth)		0.28	0.11	0.02
Debt Equity Ratio (Total Liability/Networth)		27.38	29.42	12.81
Current Ratio (Current Asset/Current Liability)		1.12	1.44	5.54

LOCAL AGENCY FURTHER INFORMATION

VALUE OF FRINGE BENEFITS IN TERMS OF SECTION 115 WC READ WITH SECTION 115WB FOR THE ASSESMENT YEAR 2009-10

(Rs. In Millions)

Section under which chargeable to Fringe Benefit Tax	Name	Amount of expenditure incurred or payment made	Percentage expenditure/ Payment being fringe benefits	Value of fringe benefits
115WB(1)(b)	Free or concessional ticket provided by the employer for private journeys of this employees or their family members	Nil	100%	Nil
115WB(1)(c)	Any contribution by the employer to any approved Superannuation fund for employees (see Note1)	Nil	100%	Nil
115WB(2)(A)	Entertainment	Nil	20%	Nil
115WB(2)(B)	Provision of Hospitality of every kind by the employer to any person (see Note 2)	Nil	20%	Nil
115WB(2)(C)	Conference (Other than fee for participation by the employees in any conference) (See Note 4)	Nil	20%	Nil
115WB(2)(D)	Sales promotion including publicity (see Note 5)	Nil	20%	Nil
115WB(2)(E)	Employees’ Welfare (see Note 6)	Nil	20%	Nil
115WB(2)(F)	Conveyance, (see Note 7)	Nil	20%	Nil
115WB(2)(G)	Use of hotel, boarding and lodging facilities	Nil	20%	Nil
115WB(2)(H)	Repair, Running (including fuel), maintenance of motor cars and the amount of depreciation thereon	Nil	20%	Nil
115WB(2)(I)	Repair, Running ( Including Fuel) and maintenance of aircraft and the amount of depreciation thereon	Nil	20%	Nil
115WB(2)(J)	Use of Telephone (Including mobile phone) other than expenditure on leased telephone lines	0.030	20%	0.006
115WB(2)(K)	Maintenance of any accommodation in the nature of guest house other than accommodation used for training purpose	Nil	20%	Nil
115WB(2)(L)	Festival Celebrations	Nil	50%	Nil
115WB(2)(M)	Use of health club and similar facilities	Nil	50%	Nil
115WB(2)(N)	Use of any other club facilities	Nil	50%	Nil
115WB(2)(O)	Gifts	Nil	50%	Nil
115WB(2)(P)	Scholarships	Nil	50%	Nil
115WB(2)(Q)	Tour and Travel (Including foreign travel) (see Note 12)	0.083	5%	0.004
Total		0.112		0.010

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PROJECTED BALANCE SHEET

(Rs. in Millions)

SOURCES OF FUNDS		31.03.2011	31.03.2012
SHAREHOLDERS FUNDS
1] Share Capital		1.594	2.150
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
5] God’s A/c		0.001	0.001
NETWORTH		1.595	2.151
LOAN FUNDS
1] Secured Loans		7.500	7.500
2] Unsecured Loans		1.000	1.500
TOTAL BORROWING		8.500	9.000
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		10.095	11.151
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.097	0.097
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	7.500	8.500
	Sundry Debtors	7.093	7.504
	Cash & Bank Balances	0.045	0.090
	Other Current Assets	0.350	0.450
	Loans & Advances	0.010	0.010
Total Current Assets		14.998	16.554
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	5.000	5.500
	Other Current Liabilities	0.000	0.000
	Provisions	0.000	0.000
Total Current Liabilities		5.000	5.500
Net Current Assets		9.998	11.054
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		10.095	11.151

PROJECTED PROFIT & LOSS ACCOUNT

(Rs. in Millions)

	PARTICULARS		31.03.2011	31.03.2012
	SALES
		Income	46.000	59.000
		Other Income	2.800	3.500
		TOTAL	48.800	62.500
Less	EXPENSES
		Cost of Goods Sold	21.196	29.050
		Packing Material	2.800	3.200
		Embroidery charges	3.000	3.500
		Sample Expenses	0.300	0.500
		Bank Charges	0.100	0.125
		Interest	0.500	0.800
		Shipping Charges	0.815	1.000
		Shop Expenses	0.125	0.200
		Insurance	0.040	0.050
		Petrol	0.110	0.150
		Repairs and Maintenance	0.100	0.150
		Other Expenses	19.514	24.475
		TOTAL	48.600	63.200
	NET PROFIT		0.200	0.300

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OPERATING STATEMENT

(Rs. in Millions)

Particulars	31.03.2011 Estimated	31.03.2012 Projected
1. SALES
i. Domestic Sales	1.000	1.500
ii. Export Sales/ Job Work	45.000	57.500
iii. Gross Sales ( i+ii)	46.000	59.000
iv. Excise Duty	--	--
v. Net Sales (iii-iv)	46.000	59.000
vi. Other Revenue Income	--	--
vii. TOTAL	6.823	2.826
2. Percentage of rise (+) or fall (-) in net sales as compared to previous year
3. COST OF SALES
i. Raw Materials (Including stores and other items) used in the process of manufacturing (a+b+c)	24.500	30.050
a) Opening Stock
- Imported	--	--
- Indigenous	--	--
b) Procured/ to be procured during	24.500	30.050
- Imported	--	--
- Indigenous	24.500	30.050
c) Closing Stock
- Imported	--	--
- Indigenous	--	--
ii. Other Spares
a) Imported	--	--
b) Indigenous	--	--
iii. Power and Fuel	--	--
iv. Direct Labour (factory Wages and Salaries)	19.604	23.150
v. Other manufacturing expenses	--	--
vi. Depreciation	--	--
vii. SUB-TOTAL (i to vi)	44.104	53.200
Add: Opening Stock-in-process	--	--
Less: Closing Stock-in-process	--	--
viii. Add: Opening Finished goods	4.196	7.500
Less: Closing Finished goods	7.500	8.500
ix. SUB-TOTAL (Total cost of sales)	40.800	52.200
4. Selling, General and administrative expenses	7.169	8.944
5. SUB-TOTAL (3+4)	47.969	61.144
6. Operating profit before interest (1-5)	[1.969]	[2.144]
7. Interest	0.500	0.800
8. Operating Profit after Interest (6-7)	[2.469]	[2.944]
9 i) Other non-operating income
a)	2.800	3.500
b)	--	--
c)	--	--
Sub-total (Income)	2.800	3.500
ii) Deduct other non-operating expenses
a)	--	--
b)	--	--
c)	--	--
Sub- Total (Expenses)	--	--
iii) Net of other non-operating income/ expenses (i) – (ii)	2.800	3.500
10. Profit before tax/ loss (8+9(iii))	0.331	0.556
11. Provision for taxes	0.000	0.000
12. Net profit/ Loss (10-11)	0.331	0.556
13. a) Equity Dividend amount/ drawings	--	--
b) Dividend Rate	--	--
14. Retained Profit (12-13)	0.331	0.556
15. Retained Profit/ Net Profit (%age)	100.00	100.00

ANALYSIS OF BALANCE SHEET

(Rs. in Millions)

Particulars	31.03.2011 Estimated	31.03.2012 Projected
CURRENT LIABILITIES
1. Short- Term Borrowings from banks (Including bills purchased, discounted and excess borrowings placed on repayment basis)
i) From Applicant bank	7.500	7.500
ii) From Other banks	--	--
iii) (of which BP and BD)	--	--
Sub- Total (A)	7.500	7.500
2. Short – term borrowings form others	--	--
3. Sundry Creditors (Trade) (in Months’s Purchase)	5.001	5.501
4. Advances/ deposits form dealers	--	--
5. Provision for taxation	--	--
6. Dividend payable	--	--
7. Other statutory liabilities (due within one year)	--	--
8. Deposits/ installments of term loans/ DPGs/ debentures etc. (due within one year)	--	--
9. Other Current liabilities and provision (Due within one year) (specify major items)	--	--
Sub- total (B)	5.001	5.501
10. TOTAL CURRENT LIABILITIES ( Total of 1 to 9)	12.501	13.001
TERM LIABILITIES
11. Debentures (not maturing within one year)	--	--
12. Preference shares (redeemable after one year)	--	--
13. Term Loan (excluding installments payable within one year)	--	--
14. Deferred payment credits excluding installments due within one year	--	--
15. Term Deposits (repayable after one year)	1.000	1.500
16. Other Term Liabilities	--	--
17. TOTAL TERM LIABILITIES (Total of 11 to 15)	1.000	1.500
18. TOTAL OUTSIDE LIABILITIES (10+17)	13.501	14.501
NET WORTH
19. Ordinary Share Capital	1.263	1.594
20. General Reserve	--	--
21. Revaluation Reserve	--	--
22. Other Reserve (excluding provisions)	--	--
23. Surplus(+)/ Deficit(-) in Profit and Loss account	0.331	0.556
24. NET WORTH	1.564	2.150
25. TOTAL LIABILITIES (18+24)	15.095	16.651
CURRENT ASSETS
26. Cash and Bank Balances	0.045	0.090
27. Investments (Other than long term investments)
i) Government and other Trustee securities	--	--
ii) Fixed Deposit with banks	--	--
28 i) Receivables other than deferred exports (including bills purchased and discounted by banks)	3.093	3.204
ii) Export receivables (including bills purchased/ discounted by banks)	4.000	4.300
29. Installments of deferred receivables (due within one year)	--	--
30. Inventory	7.500	8.500
i) Raw Materials (including stores and other items used in the process of manufacture)	--	--
a) Imported (in Months’s consumption)	--	--
b) Indigenous (in month’s consumption)	--	--
ii) Stock-in-process (month’s cost of production)	--	--
iii) Finished goods (month’s cost of production)	7.500	8.500
iv) Other consumable spares
a) Imported	--	--
b) Indigenous	--	--
31. Advances to suppliers of raw materials and stores / spares	--	--
32. Advance payment of taxes	--	--
33. Other Current assets (Specify major items)	--	--
34. TOTAL CURRENT ASSETS (Total 26 to 33)	14.638	16.094
FIXED ASSETS
35. Gross Block (Land and building, Machinery, work-in-progress)	0.146	0.146
36. Depreciation to date	--	--
37. NET BLOCK ( 35-36)	0.146	0.146
OTHER NON- CURRENT ASSETS
38. Investment/ Book debts/ Advances/ Deposits/ which are not current assets	--	--
i) a) Investments in subsidiary companies/ affiliates	--	--
b) Others	--	--
ii) Advances to Suppliers of Capital goods and contractors	--	--
iii) Deferred receivables (maturity exceeding one year)	--	--
iv) Others	--	--
39. Non- consumables stores and spares	--	--
40. Other non-current assets including dues form directors	0.311	0.411
41. TOTAL OTHER NON- CURRENT ASSETS (Total of 38 to 40)	0.311	0.411
42. Intangible assets (patents, goodwill, preliminary expenses, bad/ doubtful debts no provided for etc.)	--	--
43. TOTAL ASSETS (Total of 34, 37, 41 and 42)	15.095	16.651
TOTAL LIABILITIES	15.095	16.651
44. TANGIBLE NET WORTH (24-42)	1.594	2.150
45. NET WORKING CAPITAL [(17+24)- (37+41+42)]	2.137	3.093
46. CURRENT RATIO (Item 34/10)	1.17	1.24
47. Total Outside Liabilities / Tangible Net Worth (18/44)	8.47	6.74

ASSESSED BANK FINANCE CALCULATIONS

(Rs. in Millions)

Particulars	31.03.2011 Estimated	31.03.2012 Projected
1. Total Current Assets	14.638	16.094
2. Than Bank Borrowings	5.001	5.501
3. Working Capital GAP	9.637	10.593
4. Net Working Capital (ACT/ Proj)	2.137	3.093
5. Assessed Bank Finance	7.500	7.500
6. NWC to TCA %	14.60	19.22
7. Bank Finance to TCA %	51.24	46.60
8. Other Cl to TCA	--	--
9. Sundry Creditors to TCA %	34.16	34.18
10. Inventories to NS (Days)	59.51	52.58
11. Rec. to Gross Sales (Days)	56.28	46.42
12. Sundry Creditors to Purchases %	74.50	66.82

PROFITABILITY RATIOS

(Rs.in Millions)

Particulars	31.03.2011 Estimated	31.03.2012 Projected
Gross Sales	46.000	59.000
Net Sales	46.000	59.000
Operating Profit	[2.469]	[2.944]
Net Other Income	2.800	3.500
P.B.T.	0.331	0.556
PBT/ NS%	0.72	0.94
P.A.T.	0.331	0.556
Cash Accruals	0.331	0.556
T.N.W.	1.594	2.150
TOL/ TNW	8.47	6.74
N.W.C.	2.137	3.093
Current Ratio	1.17	1.24
EFFICIENCY RATIOS
PBDIT/ NS%	1.81	2.30
NS/TTA	3.05	3.54
PBT/ TTA %	2.19	3.34
OPERATING COST/ NS%	105.37	104.99
BF/ TCA%	51.24	46.60
Investment+ Rec / NS (Days)	115.79	99.01

FUNDS FLOW STATEMENT

(Rs. in Millions)

Particulars	31.03.2011 Estimated	31.03.2012 Projected
1. SOURCES
a) Net Profit (After Tax)	0.331	0.556
b) Depreciation	--	--
c) Increase in Reserves	1.163	0.331
d) Increase in Capital	0.400	0.500
e) Increase in Term Liabilities	--	--
f) Decrease in	--	--
i) Fixed Assets	--	--
ii) Other Non Current Assets	--	--
g) Others	--	--
h) Total	1.894	1.387
2. USES
a) Net Loss	--	--
b) Decrease in Term Liabilities including Public Deposits	--	--
c) Increase in	--	--
i) Fixed Assets	--	--
ii) Other Non Current Assets	0.043	0.100
d) Dividend payment	--	--
e) Others	0.163	0.331
f) TOTAL	0.206	0.431
3. Long Term Surplus/ Deficit	1.688	0.956
4. Increase/ Decrease in Current Assets	7.559	1.456
5. Increase/ Decrease in Current Liabilities other than bank borrowings	[1.629]	0.500
6. Increase/ Decrease in Working Capital GAP	9.188	0.956
7. Net Surplus(+)/ Deficit (-)	[7.500]	0.000
8. Increase/ Decrease in Bank Borrowings	7.500	--

(Rs. in Millions)

Particulars	31.03.2011 Estimated	31.03.2012 Projected
HOLDING LEVELS
Raw Materials (in months consumption)	--	--
Stock in process (in months cost of production)	--	--
Finished Goods (in months cost of sales)	0.188	0.167
Receivables (in month’s sales)	0.185	0.153
Sundry Creditors (in months purchase)	2.45	2.20

ASSESSMENT AS PER NAYAK COMMITTEE METHOD

(Rs. in Millions)

Particulars	31.03.2011 Estimated	31.03.2012 Projected
Anticipated Annual Turnover	46.000	59.000
Working Capital Requirement (25%)	11.500	14.750
Margin (5% of Turnover)	2.300	2.950
20% Margin of Industrial Output	9.200	11.800
Bank Finance Recommended	7.500	7.500

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STATEMENT SHOWING ASSETS AND LIABILITIES (NET WORTH STATEMENT)

NAME OF THE APPLICANT	MR. A M RAVI
NAME OF THE CO-APPLICANT	MRS. R MENEGA
NAME OF THE GUARANTOR	MR. K S KALEEL RAHMAN

IMMOVABLE PROPERTIES
	Applicant	Co-Applicant	Guarantor
Address of the property with Survey No./ Door No. etc.	Ram Nagar, Karur	--	D. No. 962, Ward 1, Kovai Raod, South Side Karur
Description: Land / Building	Land	--	Land and Building
Whether Free hold/ Lease hold	Freed hold	--	Free hold
Type of Property: Commercial / Residential/ Agricultural	Land Site	--	Commercial
Area/ Extent of Land	4617	--	Enclosed Separately
Mortgaged for availing loan if any, details thereof	--	--	--
Present Market / Assessed Value	Rs. 4.617 Million	--	Rs 10.400 Millions

INVESTMENT IN BUSINESS CAPITAL
	Applicant	Co-Applicant	Guarantor
Name of the Company/ firm/ Concern in which investment is made	Melvin International	Melvin International	--
Present Value of Investment	Rs. 0.100 Million	Rs. 0.163 Million	--

LIFE INSURANCE POLICIES
	Applicant	Co-Applicant	Guarantor
Policy Number/s	751511433/ 752526516/ 75576960	754840545	755769766
Sum Assured	Rs. 1.600 Millions	Rs. 0.250 Million	Rs. 0.500 Million
Surrender Value	Rs. 0.600 Million	Rs. 0.175 Million	Rs. 0.200 Million

OTHER ASSETS
	Applicant	Co-Applicant	Guarantor
Debtors	Rs. 0.100 Million	--	Rs. 0.200 Million
Cash in Hand	Rs. 0.050 Million	Rs. 0.050 Million	Rs. 0.060 Million
Jewellery	Rs. 0.400 Million	Rs. 0.500 Million	Rs. 0.500 Million
Total value of other Assets	Rs. 0.550 Million	Rs. 0.550 Million	Rs. 0.760 Million

TOTAL ASSETS
TOTAL ASSETS	RS. 5.867 MILLIONS	RS. 0.888 MILLION	RS. 11.360 MILLIONS

NET WORTH

RS. 5.867 MILLIONS

RS. 0.888 MILLION

RS. 11.360 MILLIONS

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VALUATION REPORT

DESCRIPTION OF THE PROPERTY

Purpose for which this valuation is made

To access the present market value and forced sale value.

Date on which valuation is made

25.01.2010

Name and address of the owners

Mr. K.S. Kaleel Rahman

S/O Mr. K S Shak Ali

No. 3, Thavakkayam Street, Pallapatti, Pallatti Village, Aravakuruchi Taluk, Karur Taluk and District.

Brief description of the property

This is R.C.C. framed structure commercial building. It consists of Semi basement floor, Ground Floor, First Floor and Second Floor, in a land of 1232.00 sq.ft.

Location of the Property

T.S. No.

1107/A (Old), 3037 (New)

Door No.

962

Ward No.

1

Block No.

56

At

Kovai Road

Town and Municipality

Karur

Taluk and District

Karur

Postal address of the property

T. S. No. 1107/A (old), 3037 (new), Door No. 962, Ward No. 1, Block No. 56l, Kovai Road South Side, Karuru Town and Municipalty, Karur Taluk and District.

Classification of locality

Middle Class

Situation of property

Commercial

Class of Construction

2^nd Class

Proximity to civic amenities

Near by

Marketability

Satisfactory

Size of the land

North

27’6”

South

34’6”

East

37’6”

West

43’0”

Total Area of the Site

1232.00 sq.ft.

Boundary Details

North

E-W Kovai Road

South

Thiru Vee Ka Salai

East

N-S Bye-Pass Road

West

Balkrishnan Naidu’s property

QUESTIONNAIRE

Character of locality

Commercial

Classification

Middle Class

Development of the surrounding areas

Full Developed

Is the locality subjected to frequent Flooding?

No.

Feasibility to the civic amenities like schools, markets, offices, hospitals and markets

Near by

Level of land with topographical conditions

Leveled

Shape of Land

Irregular

Type of use to which it can be put

Commercial

Any restriction of usage?

No.

Whether lease hold/ free hold

Free hold

Is t in town planning approval layout?

Building approved by Municipality.

B.L. No.2/97

It is a corner plot

Yes

Road Facilities

Available

Water Potentiality

Available

Underground Sewerage

Available

Commercial Potential value of the property

Very Good

Any other sentimental/ social issue which may affect the value

No

Expected (or) Residual future life of the building

R.C.C. roof- 68 years

G.I Sheet roof- 38 years

Property tax

Assessment No. 10001, 10002, 10003, in the year of 2008-209 (1^st Half), the amount paid Rs. 1918/- Rs. 2555/- Rs. 1064/-, in the name of Mr. K S. Syed Ibrahim and Mr. K S Kaleel Rahim.

VALUATION DETAILS

PART-I LAND

Details about the site:

The above said site is located near the Bus stand and heart of the Town. It s surrounded by three side roads, and main commercial area in Karur Town. All basis amenities are available near by site. So it has good potential value.

S.R.O / Sq.ft.

Rs. 1100/-

Market Rate/ Sqft.

Rs. 7000/- to Rs. 7500/-

Fair Market Value rate/ Sq.ft.

Rs. 7000/-

Forces sale Value of the land/ Sq.ft.

Rs. 70% of F.M.V .

(70/100) X 7000/-

= Rs. 4900/-

Land Value

S.No.	Value Based on	Area of Site in Sq.ft.	Rate/ Sq.ft. (In Rs.)	Value of Site (Rs. in Millions)
1	Fair Market Value	1232.00	7000/-	8.624
2	Guide line value	1232.00	1100/-	1.355
3.	Forced sale value	1232.00	4900/-	6.037

BUILDING

Details about the buildings

This is a R.C.C. framed structure commercial building with Semi basement floor. Ground Floor, First Floor and Second Floor. Isolated column footings, R.C.C. columns and beams are provided for foundation and basement. The superstructures are brick works in c.m. The walls are plastered and white washed. Rolling shutter/ Steel door/ Country wood doors an windows are provided. The Semi basement flor, Ground floor are finished with Marble Slabs. The First Floor and Second floor are finished with ordinary cement mortar. Necessary Power Supply, water supply and sanitary arrangements are provided. Spiral staircase arrangements are provided for upstairs.

Building Value

Area of semi basement floor R.C.C. roof building

1031.00 sq.ft.

Present estimate cost of Construction per sq.ft

Rs. 600/-

Present total estimate cost

Rs. 0.619 Million------------- (a)

Area of Ground Floor R.C.C. roof building

1031.00 sq.ft.

Present estimate cost of construction per sq.ft.

Rs. 650/-

Present total estimate cost

Rs. 0.670 Million--------------(b)

Area of First Floor R.C.C. roof building

1031.00 sq.ft.

Present estimate cost of construction per sq.ft.

Rs.600/-

Present Total Estimate cost

Rs. 0.619 Million---------------(c)

Area of Second floor R.C.C. Roof building

117.00 sq.ft.

Present estimate cost of construction per sq.ft.

Rs. 500/-

Present total Estimate cost

Rs. 0.059 Million---------------(d)

Area of Second Floor G.I Sheet roof building

395.00 sq.ft.

Present estimate cost of construction per sq.ft.

150/-

Present total Estimate cost

Rs. 0.059 Million--------------- (e)

Depreciation Value:

Since the above said building was construction some 12 years before. Assume salvage value is 10%.

Depreciation % age : (Age of the building/ Total Life) X ( 100- Salvage Value)

Where,

Total Life of the building : R.C.C. Roof – 80 Years

G. I Sheet Roof – 50 Years

S No.	Name of the buildings	Replacement Value (Rs. in Millions)	Depreciation % age	Depreciation Value (Rs. in Millions)	Depreciated value of the buildings (A-B) in Rs.
1 to 4	R.C.C Roof (a to d)	1.966	14%	0.275	1.691
5	G.I Sheet Roof (e)	0.059	22%	0.013	0.046
Total Depreciation value of the building ---- (II)					Rs. 1.737 Millions

Amenities value (After Depreciation):

Power supply arrangements

Three phase- 2 nos. and Single Phase- 1 No.

Rs. 0.040 Million

Sintex tank of 2000 liters capacity @ Rs. 8/ Liter

Rs. 0.016 Million

Sump of 5000 lilters capacity @ Rs. 5.0/liter

Rs. 0.025 Million

Value of Spiral Staircase arrangement

Rs. 0.050 Million

Rs. 0.131 Million---- (III)

Total Fair Market Value of the Buildings and amenities

(I+II)

= (Rs. 1.737 Millions + 0.131 Million)

= Rs. 1.868 Millions

Forces sale value of the buildings and amenities

: 70% of the F.M.V.

: (70/100) X 1.868 Millions

: Rs. 1.307 Millions

ABSTRACT

S. No.	Value based on	Land Value (Rs. in Millions)	Building Value (Rs. in Millions)	Total Value (Rs. in Millions)
1	Fair Market Value	8.624	1.868	10.492 Say Rs. 10.492 Millions
2.	Guide Line Value	1.355	1.868	3.223 Say Rs. 3.223 Millions
3.	Forced sale value	6.037	1.307	7.344 Say Rs. 7.344 Millions

a) Value of the property based on Fair Market Value

Rs. 10.492 Millions

b) Value of the property base on Guide Line Value

Rs. 3.223 Millions

c) Value of the property based on Forced sale Value

Rs. 7.344 Millions

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Trade References:

· Design Import India- USA

· Cosplus Weld Market, USA

· Desperado Optical

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.20
UK Pound	1	Rs.73.07
Euro	1	Rs.61.41

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.