MIRA INFORM REPORT

Report Date :

28.03.2011

IDENTIFICATION DETAILS

Name :	PURI ARCADE

Registered Office :	Khasra No. 5804, 5805, Garh Road, Meerut, Uttar Pradesh

Country :	India

Financials (as on) :	15.12.2010 (Provisional)

Date of Incorporation :	Proposed

PAN No.: [Permanent Account No.]	AKPPP5000L

Legal Form :	Sole Proprietory Concern

Line of Business :	Hotel, Bar and Restaurant.

RATING & COMMENTS

MIRA’s Rating :

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Status :	Yet to commence

Payment Behaviour :	--

Litigation :	--

Comments :	Subject is a new project and proposal to commence soon. The valuation report and networth statement provided seems to be satisfactory. No further details or payment could be made available. 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

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. Anuj Singhal
Designation :	Chartered Accountant
Contact No.:	91-9837064956
Date :	21.03.2011

LOCATIONS

Registered Office :	Garh Road, Meerut, Uttar Pradesh, India
Mobile No.:	91-9837022528/ 9760019058
Location :	Owned

SOLE PROPRIETOR

Name :	Mr. Tata Chand Puri
Designation :	Proprietor
Address :	H-201, Shastri Nagar, Meerut, India
Date of Birth/Age :	18.11.1955
Qualification :	Under-Graduate
Experience :	35 years

KEY EXECUTIVES

Name :	Mr. Anuj Singhal
Designation :	Chartered Accountant

BUSINESS DETAILS

Line of Business :

Hotel, Bar and Restaurant.

GENERAL INFORMATION

Bankers :

§ Corporation Bank

§ Punjab and Sindh Bank

Facilities :

Bank	Nature of Credit Facility	Sanctioned Loan amount	Outstanding balance

Punjab and Sindh Bank	Term Loan	Rs.32.000 Millions	Rs.24.300 Millions

Banking Relations :

Auditors :

Not Available

Associates/ Subsidiary :

Name:	APO Constructions
Address :	1, First Floor, karan Plaza, Mawana Road, Meerut, Uttar Pradesh, India
Nature of Business:	Civil Construction
Constitution:	Partnership Firm
Partners:	Mr. Tata Chand Puri Mr. Hari Om Anand Mr. Jasbir singh Obroi
Loans and Liability:	The firm is not having any secured loans from any financial institutions. Further, the firm is not doing any commercial activity for last three years.

Name:	D and A Hospitality Services Private Limited
Address :	4^th Floor, IFCI Tower 61, Nehru Palace, New Delhi – 11019, India
Nature of Business:	Bar and Restaurant
Constitution:	Private Limited company
Directors:	Mr. Tara Chand Puri Mr. Himanshu Puri Mr. Sunil Kumar
Loans and Liability:	The company is not having any secured loans from any financial institutions. Further, the company is not doing any commercial activity since financial year 2009-10.

CAPITAL STRUCTURE

Capital Investment :
Owned :	Rs.19.497 Millions
Borrowed :	Rs.43.415 Millions
Total :	Rs.62.912 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		15.12.2010 (Provisional)
SHAREHOLDERS FUNDS
1] Share Capital		19.497
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		19.497
LOAN FUNDS
1] Secured Loans		22.165
2] Unsecured Loans		21.250
TOTAL BORROWING		43.415
DEFERRED TAX LIABILITIES		0.000

TOTAL		62.912

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		49.972
Capital work-in-progress		0.000

INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	8.904
	Sundry Debtors	0.000
	Cash & Bank Balances	0.696
	Other Current Assets	0.000
	Loans & Advances	3.340
Total Current Assets		12.940
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	0.000
	Other Current Liabilities	0.000
	Provisions	0.000
Total Current Liabilities		0.000
Net Current Assets		12.940

MISCELLANEOUS EXPENSES		0.000

TOTAL		62.912

KEY RATIOS

PARTICULARS				15.12.2010 (Provisional)
Debt Equity Ratio (Total Liability/Networth)				2.23

Current Ratio (Current Asset/Current Liability)				0.00

LOCAL AGENCY FURTHER INFORMATION

OPERATING STATEMENT

(RS. IN MILLIONS)

Particulars	1 (2010-11)	2	3	4	5	6	7
	(PROJECTED)
Gross Sales
Indigenous	52.612	70.150	70.150	70.150	75.995	81.841	87.687
Export	0.000	0.000	0.000	0.000	0.000	0.000	0.000

Total	52.612	70.150	70.150	70.150	75.995	81.841	87.687

Less : Excise Duty	0.000	0.000	0.000	0.000	0.000	0.000	0.000

Net Sales	52.612	70.150	70.150	70.150	75.995	81.841	87.687

% rise [+] or fall [-] in net sales as compared to previous year	--	33.33%	0.00%	0.00%	8.33%	7.69%	7.14%

Cost of Sales

Raw Materials Consumed (Including Stores and Other Items Used in the Process of Manufacture)	9.327	12.359	12.334	12.334	13.370	14.398	15.426

Others Stores and Spares	0.540	0.720	0.720	0.720	0.780	0.840	0.900

Power and Fuel	5.997	7.996	7.996	7.996	8.663	9.329	9.995
Direct Wages (Factory Wages and Salaries)	5.465	8.015	8.817	9.698	10.668	11.735	12.908
Repairs and Maintenance	0.450	0.495	0.545	0.599	0.659	0.725	0.797
Other Manufacturing Expenses	0.270	0.360	0.360	0.360	0.390	41.851	44.881
Depreciation	3.815	4.189	4.404	4.404	4.404	4.404	4.404

Sub Total	25.864	34.135	35.175	36.111	38.934	41.851	44.881

Add: Opening stocks in process	0.000	0.000	0.000	0.000	0.000	0.000	0.000

Sub total	25.864	34.135	35.175	36.111	38.934	41.851	44.881

Deduct: Closing stocks in process	0.000	0.000	0.000	0.000	0.000	0.000	0.000

Cost of production	25.864	34.135	35.175	36.111	38.934	41.851	44.881

Add: Opening stock of Finished Goods	0.000	0.216	0.284	0.293	0.301	0.324	0.346

Sub Total	25.864	34.350	35.460	36.405	39.235	42.175	45.230

Deduct : Closing stock of Finished Goods	0.216	0.284	0.293	0.301	0.324	0.349	0.374

SUB TOTAL (Total cost of sales)	25.649	34.066	35.167	36.104	38.910	41.826	44.856

Gross Profit	26.963	36.084	34.983	34.046	37.085	40.015	42.831

Selling, General and Administrative Expenses	1.052	1.403	1.403	1.403	1.520	1.637	1.754

Operating Profit before interests	25.911	34.681	33.580	32.643	35.565	38.378	41.078

Interests on
- Term Loan	5.100	3.900	3.300	2.700	2.100	1.350	0.450
- Working Capital	0.000	0.000	0.000	0.000	0.000	0.000	0.000

Operating profit after Interests	20.811	30.781	30.280	29.943	33.465	37.028	40.628

Add : Other non Operating Income	0.000	0.000	0.000	0.000	0.000	0.000	0.000

Less: Other Non Operating Expenses	0.601	0.601	0.601	0.601	0.601	0.601	0.601

Profit before Tax/ Loss [PBT]	20.210	30.180	29.679	29.342	32.864	36.427	40.027

Provision for taxes	0.992	2.183	2.297	2.463	2.972	3.454	3.914

Net Profit / Loss [PAT]	19.218	27.997	27.382	26.879	29.892	32.973	36.113

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BALANCE SHEET

(RS. IN MILLIONS)

Particulars	1	2	3	4	5	6	7
	(PROJECTED)
CURRENT LIABILITIES

Short Term Borrowing from Bank
i. From Application Bank	0.000	0.000	0.000	0.000	0.000	0.000	0.000
ii. From Other Banks	0.000	0.000	0.000	0.000	0.000	0.000	0.000

SUB TOTAL	0.000	0.000	0.000	0.000	0.000	0.000	0.000

Short Term Borrowings From Others	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Sundry Creditors (Trader)	0.082	0.109	0.109	0.109	0.118	0.127	0.136
Advances Payment from customers	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Provision For Taxes	0.992	2.183	2.297	2.463	2.972	3.454	3.914
Creditor for Expenses	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Dividend Payable	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Other Statutory Liabilities (due within one years)	0.50	0.500	0.50	0.500	0.500	0.500	0.500
Installments of term loans and Deferred Payment Credits	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Other current Liabilities and Provisions (due within one years)	0.500	0.500	0.500	0.500	0.500	0.500	0.500

SUB TOTAL	2.075	3.292	3.406	3.571	4.090	4.581	5.050

TOTAL CURRENT LIABILITIES	2.075	3.292	3.406	3.571	4.090	4.581	5.050

TERM LIABILITIES

Debentures	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Redeemable Preference Shares	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Term Loans	35.000	30.000	25.000	20.000	15.000	7.500	0.000
Deferred Payment Credits	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Term Deposit	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Other Term Liabilities/ Unsecured Loans	26.000	21.000	11.000	6.000	1.000	0.000	0.000

TOTAL TERM LIABILITIES	61.000	51.000	36.000	26.000	16.000	7.500	0.000

TOTAL OF OUTSIDE LIABILITIES	63.075	54.292	39.406	29.571	20.090	12.081	5.050

NET WORTH
Oriental Shares Capital	91.453	91.453	91.453	91.453	91.453	91.453	91.453
Application Money	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Partner’s Current A/c	0.000	0.000	0.000	0.000	0.000	0.000	0.000
General Reserve	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Revolution Reserve	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Reserves and Surplus	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Unsecured Loans	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Share Premium Account	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Surplus (+) or deficit (-) in Profit and Loss Account	19.218	47.215	74.597	101.476	131.368	164.341	200.454

TOTAL NET WORTH	110.671	138.668	166.050	192.929	222.821	255.794	291.907

TOTAL LIABILITIES	173.745	192.960	205.456	222.501	242.911	267.875	296.957

ASSETS

CURRENT ASSETS

Cash and Bank Balance	0.626	0.871	0.866	3.408	3.235	3.615	3.612
Investments [Other than long term investments]	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Receivables other than deferred and exports	8.769	11.692	11.692	11.692	12.666	13.640	14.615
Export receivables	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Government and other Trustee securities	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Fixed deposit with bank	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Domestic receivable Including BP/ BD	0.000	0.000	0.000	0.000	0.000	0.000	0.000

INVENTORY

Raw Materials	0.777	1.030	1.028	1.028	1.114	1.200	1.285

Stock in Process	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Finished Goods	0.216	0.284	0.293	0.301	0.324	0.349	0.374
Other Consumable Spares	0.045	0.060	0.060	0.060	0.065	0.070	0.075
Advances to suppliers	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Advance Payment of Taxes	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Other Current Assets	0.500	1.000	1.000	1.000	1.000	1.000	1.000

TOTAL CURRENT ASSETS	10.933	14.937	14.938	17.489	18.404	19.874	20.961

FIXED ASSETS

Gross Block (Land and Building Machinery)	149.219	159.219	166.719	174.719	180.719	180.719	180.719
Depreciation to date	3.815	8.004	12.408	16.813	21.217	25.622	30.026

NET BLOCK	145.404	151.215	154.310	157.906	159.502	155.097	150.693

OTHER NON CURRENT ASSETS

Investments in sub Cos./ Affiliates	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Advances to suppliers of Capital goods and contractors	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Investment in Others	12.000	22.000	32.000	43.500	62.000	90.500	123.500
Other Non-Current Investment	0.000	0.000	0.000	0.000	0.000	0.000	0.000

TOTAL OTHER NON CURRENT ASSETS	12.000	22.000	32.000	43.500	62.000	90.500	123.500

Intangible Assets	5.409	4.808	4.207	3.606	3.005	2.404	1.803

TOTAL ASSETS	173.745	192.960	205.456	222.501	242.911	267.875	296.957

Tangible Net Worth (TNW)	105.262	133.860	161.843	189.323	219.816	253.390	290.104

Net Working Capital (NWC)	8.858	11.645	11.532	13.917	14.314	15.293	15.911

Current Ratio	5.27	4.54	4.39	4.90	4.50	4.34	4.15

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COST OF PROJECT

(RS. IN MILLIONS)

Particulars	Amount

Land	56.716
Building	51.000
Plant and Machinery	34.013
Other fixed Assets	4.990
Vehicles	0.000
Escl. And Contingencies	0.000
Prel. And Preoperative Expenses	0.822
Intt. During Cons. Period	5.188
M M for working capital	9.724

Total	162.453

MEANS OF FINANCE

(RS. IN MILLIONS)

Particulars	Amount

Secured Loans	50.000
Unsecured Loans	21.000
Promoters Contribution	91.453
Soft Loan	0.000

Total	162.453

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STATEMENT OF ASSETS AND LIABILITIES

NAME OF THE APPLICANT: MR. TARACHAND PURI

NAME OF THE GUARANTOR: MRS. LOVELY PURI

NAME OF THE GUARANTOR: MR. HIMANSHU PURI

(RS. IN MILLIONS)

ASSETS

IMMOVABLE PROPERTY

Particulars	Applicant	Guarantor	Guarantor

Address of the Property with survey no./ door no. etc.	1. Garh Road, Meerut, Uttar Pradesh, India 2. H – 201, Shastri Nagar, Meerut, India	H – 201, Shastri Nagar, Meerut, India	1. H-373/ 1/ 8 Shastri Nagar, Meerut, India 2. H-373/ 1/ 8 Shastri Nagar, Meerut, India 3. B – 10, Gurgaon, India

Whether – Freeholds/ Leasehold	Freeholds	Freeholds	Freeholds

Type of Property: Commercial / Residential/ Agricultural	1. Commercial 2. Residential	Residential	1 and 2 - Residential 3 – Commercial

Area / extent of Land	1890 sq. yards 198 sq. mtrs.	198 sq. mtrs.	1 and 2 -138.72 sq. mtrs. 3 – 447 sq. ft.

Mortgaged for availing loan of any, details thereof	Mortgaged	Mortgaged for Existing Loan	Nil

Present Market/ Assessed Value	51.000 and 3.000 Total = Rs.54.000 Millions	Rs.3.000 Millions	1.400 +2.000+2.000 Total = Rs.5.400 Millions

INVESTMENT IN BUSINESS CAPITAL

Name of the Company/ firm/ concern in Which Investment is made	Investment in Puri Arcade	--	--

Present Value of Investment	Rs.25.000 Millions	--	--

DEPOSITS HELD WITH BANKS/ COMPANIES/ OTHER LENDER ETC.

Name of the Bank/ company where deposits are held	--	--	HDFC Bank

Nature of deposits	--	SB Account	SB Account

Present value of deposits	--	Rs.0.220 Million	Rs.0.075 Million

LIFE INSURANCE POLICIES

Surrender Value

Rs.0.450 Million

VEHICLES OWNED

Model/ Make	--	--	Skoda car

Whether Hypothecated for Loan	--	--	Yes

Present market value	--	--	Rs.0.900 Million

OTHER ASSETS

Cash in Hand	4.550	0.030	--

Other assets if any	0.500	0.800	--

Total value of Other Assets	Rs.5.050 Millions	Rs.0.830 Million	--

TOTAL ASSETS

RS.84.500 MILLIONS

RS.4.050 MILLIONS

RS.6.375 MILLIONS

LIABILITIES

Name of the Bank/ Institute	Punjab and Sindh Bank, Meerut	--	HDFc Bank

Nature/ Type of Loan	Term Loan	--	Car Loan

Amount of Loan Availed	Rs.20.000 Millions and Rs.12.000 Millions	--	Rs.0.600 Million

Amount Outstanding	Rs.27.000 Millions	--	Rs.0.400 Million

NET WORTH

RS.57.500 MILLIONS

RS.4.050 MILLIONS

RS.5.975 MILLIONS

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VALUATION REPORT OF HOUSE

Name of Registered Valuer	Tech Mech International Private Limited

Date of visit of the site for valuation of IP	10.02.2011

Date of making valuation	12.02 2011

Name of the owner(s) of the property	Shri Tara Chand Pun S/O Late Mr. H.C. Puri, and his wife Mrs. Lovely Puri ---Father’s name has been taken form the Purchased deed document.

Date of purchase of IP	18.11.1993

Purchase Price of IP	Rs.1,00,000/-

Whether necessary enquiries have been riade from the concerned locality with regard to the ownership of the property	Yes

If the property is under joint ownership! co-ownership, share of each such owner. Are the shares undivided?	Yes

Brief description of the property
a. Location, street, ward No. situated (postal address) b. Flat/ Plot No.	House No. H- 201, Yojna No.-31 At Shastri Nagar, Meerut.

Is the IP bears the same description/ details as mentioned in the documents/title deeds	Yes

Is the property situated in residential/ commercial/ mixed area/ Industrial area	Residential Area

Is the property situated in an unauthorized/ authorized colony.	Authorized

Classification of locality — high class/ middle class/ poor class	Middle Class

Proximity to civic amenities like schools, hospitals, offices, markets, cinema halls, etc.	All are Near By

Means and proximity to surface communication by which the locality is served.	By Road

Area supported by documentary proof, shape, dimensions and physical features	198.174 Sq. M. East -25’ wide Road West - House No. 231 North - House No. 199 South - House No. 203

Number of floors and height of each floor	Two, 10’-6”

Plinth area floor-wise	G.F. 188.174 Sq. M. F.F. 178.174 Sq. M. 366.348 Sq. M.

Year of commencement of construction and year of completion.	About 15 year old

What was the method of construction - by contract/by employing labour. directly/ both	By Contract.

Type of construction! Finishing –
Load bearing walls/ RCC frame/ steel frame	Load bearing wall

Type of foundations	Conventional Foundation

Walls (floor-wise)	Brick Work in Cement Mortar

Partitions	---

Doors, Windows etc. (floor-wise)	Steel / Wooden (Mixed)

Flooring (floor-wise)	Stone

Finishing (floor-wise)	Plastered surfaces, furnished with distemper and Snoweem

Roofing and terracing	RCC

Special architectural or decorative features, if any.	Ordinary

Internal wiring — surface or conduit	Conduit

Class of fittings — superior/ ordinary/ poor	Medium

Sanitary installation — Numbers ordinary/ superior	Medium Quality

Overhead tank a) Where located b) Capacity c) Type of construction	Yes on roof Medium

Sewage disposal — sewer line or septic tanks (no. and capacity)	Sewer exist

Estimated future life	60 years

Is it freehold or leasehold land?	Free hold

Is the building owner — occupied/ tenanted/ both?	Owner occupied

The valuer should give in detail his approach to valuation of the property and indicate how the value has been arrived at, supported by necessary calculations (Rent capitalisation method, municipal valuation for tax purpose, composite rate method for flat etc.) a) Land rate adopted in the valuation.	Land: The land is free hold. For assessing the cost of land, local enquiries, the recent recent purchase, and circle rate were also studied and a value of Rs.20,000/- per Sq M. is adopted, considering it as the fair representative market value. Preferred / advantageous location of the property has been kept in mind while fixing the aforesaid value of the land. Building: The assessment has been made by plinth area cost method. Basis of the valuation is taken as the plinth area rate which can be applied to the double storey house in the aforesaid location of Meerut area these days, with the specifications adopted. The cost of electric and associated installations have been included in the plinth area rates. Keeping all the details described above, an average plinth area rate of Rs.6,000/- per Sq. M. has been assessed, for the covered area of the house, seeing its condition A depreciation of 10% is in applied for the oldness of the building.

Guideline value! value of IP as per Circle rates, if any, applicable in the area where IP is situated	Rs.11,000/- per Sq. M.

Market Value of the property	A) Land 198.174 Sq. M. 20,000 = Rs.3.963 Millions B) Building 366.348 Sq. M. 6000 = Rs..2.198 Millions Less Dep.10% (-) = Rs.0.220 Million Rs.1.978 Millions Rs.5.942 Millions

Distress sale value /Realisable Value of the property by reducing it by 10 %: Rs.5.347 Millions

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VALUATION REPORT OF LAND

Date of visit of the site for valuation of IP	10.02.2011

Date of making valuation	12.02.2011

Name of the owner’s of the property	Mr. Tara Chand Puri S/O Late Mr. Chand Puri – Father’s name has been taken family settlement document

Date of purchases of IP	1.31.8.1970 (Family settlement) 05.10.1995

Purchase price of IP	Rs.30,000/- By Mr. Chand Puri on 31.08.1970 2.13.12.1997 and Rs.4,50,000/-

Whether necessary enquiries have been made from the concerned locality with regard to the ownership of the property ( Shri/Ms. of the locality was contacted)	Yes

Brief description of the property a. Location, street, ward No. b. Flat/Plot.	Plot No. 147, situated at Mohalla Panchsheel, Gargh Road. (Originally in Khasra No. 5804 and 5805).

Is the IP bears the same description/details as mentioned in the documents/title deeds	Yes

Is the property situated in residential! commercial/ mixed area/ Industrial area	Commercial

Classification of locality — high class/ middle class/ poor class	Middle Class

Proximity to civic amenities like schools, hospitals, offices, markets, cinema halls, etc.	Near By

Means and proximity to surface Communication by which the locality is served.	By Road surface vehicle

Area supported by documentary proof, shape, dimensions and physical features	1393.49 Sq. M. Through Family settlement document 187.19 Deed No.2dt. 11.12.99 --------------------------------------------------- 1580.08 Sq. M. East: Property of Mrs. Mithlesh Gupta West: Property of Mr. Saxena and then rasta North : Property of Mr. Parmanand South: Main Gargh Road

Roads, streets or lanes on which the land is abutting, surrounded	On Main Gargh Road

Number of floors and height of each floor

Plinth area floor-wise

Year of commencement of construction and year of completion.

What was the method of construction by contract/by employing labour. directly/ both

Type of construction! finishing — i) load bearing walls/RCC steel frame ii) Type of foundations iii) Walls (floor-wise)	On this land, a 5 storey office cum hotel building is under construction, but they are required to give valuation of land only, although the construction of commercial venture is in

Commercial iv) Partitions v) Doors, Windows etc. (floor-wise) vi) Flooring (floor-wise) vii) Finishing (floor-wise) viii) Roofing and terracing progress ix) Special architectural or decorative features, if any. x) Internal wiring — surface or conduit xi) Class of fittings — superior/ordinary! poor xii) Sanitary installation — Numbers ordinary/superior

Compound wall a. Height and length b. Type of construction

No. of lifts and capacity

Underground pump — capacity and type of Construction

Overhead tank d) Where located e) Capacity f) Type of construction

Water Pumps — number and their horse power

Sewage disposal — sewer line or septic tanks (no. and capacity)	It is a land only

Roads and paving within the compound, approximate area and type of paving

Is the construction/built up property is as per the plan approved by the competent authority.

What is the floor space index permissible and percentage actually utilised?

Estimated future life

Is it freehold or leasehold land?	Freehold

Is the building owner- occupied / tenanted/ both	Owner Occupied

Whether possession of the property can be taken by the bank in case of need without any litigation (society rules, independent entrance, co-owner’s share/joint ownership etc.)	Yes

The valuer should give in detail his approach to valuation of the property and indicate how the value has been arrived at, supported by necessary calculations (Rent capitalisation method, municipal valuation for tax purpose, composite rate method for flat etc.) a) Land rate adopted in the valuation.	Land: The land is free hold. For assessing the cost of land, local enquiries, the recent recent purchase, and circle rate were also studied and a value of Rs.50,000/- per Sq M. is adopted, considering it as the fair representative market value. Preferred / advantageous location of the property has been kept in mind while fixing the aforesaid value of the land.

If sales instances are not available or not relied upon, the basis of arriving at the land rate.	Market Survey

Guideline value! value of IP as per Circle rates, if any, applicable in the area where P is situated	Rs.67,500/- Per Sq. M.

Market Value of the property
Land	Rs.79.004 Millions

Realisable Value of the property 5 % and Rounded	Rs.75.000 Millions

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PERSONAL ASSETS OF THE PROPRIETOR

Name	Description of the Assets owned by them	Amount (Rs. in Millions)	Whether Offered as security

Mr. T. C. Puri	Land of Project ½ Share in Residential House	90.000 3.000	Yes

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PREAMBLE

National Tourism Policy was announced in 1982. In July 1991, tourism was declared a priority sector for foreign investment. A National Action Plan was prepared in 1992, and in priority sector for foreign investment. A national Action Plan was prepared in 1992, and in 1996, a National Strategy for Promotion of Tourism was drafted. In 2002, the New Tourism Policy was announced. The new policy is expected to position tourism as a major engine of economic growth and to harness its multiplier effects for employment generation and economic development. The new policy attempts to position India as a global brand to take advantage of the burgeoning global travel and trade the vast untapped potential of India as a destination.

It acknowledges the critical role of private sector with Government working as a pro-active facilitator and catalyst. The policy creates and develops integrated tourism circuits based on India’s unique civilization, heritage, and culture in partnership with status, private sector and other agencies. It also ensures that the tourist to India gets physically invigorated, mentally rejuvenated culturally enriched, spiritually elevated and ‘feel India from within’.

Over the last decade and half the mad rush to India for business opportunities has intensified and elevated room rates and occupancy levels in India. Even budget hotels are charging USD 250 per day. The successful growth story of ‘Hotel Industry in India’ seconds only to China in Asia Pacific.

‘Hotels in India’ have supply of 110,000 rooms. According to the tourism ministry, 4.4 million tourists visited India last year and at current trend, demand will soar to 10 million in 2010- to accommodate 350 million domestic travelers. ‘Hotels in India’ has a shortage of 150,000 rooms fueling hotel room rates across India. With tremendous pull of opportunity, India is a destination for hotel chains looking for growth. The World Travel and Tourism Council, India, data says, India ranks 18th in business travel and will be among the top 5 in this decade. Sources estimate, demand is going to exceed supply by at least 100% over the next 2 years. Five-star hotels in metro cities allot same room, more than once a day to different guests, receiving almost 24-hour rates from both guests against 6-8 hours usage. With demand-supply disparity, ‘Hotel India’ room rates are most likely to riseroding its competitiveness as a cost effective destination. However, the rating on the ‘Indian Hotels’ is bullish. ‘India Hotel Industry’ is adding about 60000 quality rooms, currently in different sieges of planning and development and should be ready by 2012. MNC Hotel Industry giants are flocking India and forging Joint Ventures to earn their share of pie in the race. Government has approved 300 hotel projects, nearly half of which are in the luxury range. Sources said, the manpower requirements of the hotel industry will increase from 7 million in 2002 to 15 million by 2010.

With the USD 23 billion software services sector pushing the Indian economy skywards, more and more IT professionals are flocking to Indian metro cities. ‘Hotel Industry in India’ is set to grow at 15% a year. This figure will skyrocket in 2010, when Delhi hosts the Commonwealth Games. Already, more than 50 international budget hotel chains are moving into India to stake their turf. Therefore, with opportunities galore the future ‘Scenario of Indian Hotel Industry’ looks rosy.

HOTEL INDUSTRY IN INDIA

In the pre independence era, most of the hotels in India were located in cities and hill stations. The industry witnessed a period of growth and considolidation since the seventies. The growth in hotel rooms has been hovering around 7.5 percent per annum during the eighties.

The number of hotels gone up from 1,333 in 2001 to 1,942 in 2005 and the room strength increased from 73,462 to 103,973 during the same period. The 3-star category witnessed the maximum growth of over 75 percent during the five-year span. The compound annual growth rate during the five-year period was around ten percent.

MAJOR HOTEL COMPANIES IN INDIA

Hotels may be classified into hotel chains and single unit hotels. The major domestic chains are EIH Limited, Indian Hotels Company Limited, ITC Hotels Limited, ITDC, Leela Group, Grand Group, Tulip Star Hotels Limited, Jaypee Group, Park Group, Mansingh Group, Ambassador Hotels, Asian Hotels, Clark Hotels, K Raheja V orporation, Casino Group, and so on.

In Meerut the number of hotels in this industry has long list but only few one are standard type. The name of Hotel in Meerut are - Hotel Abutower, Hotel Ajanta, Hotel Amber, Hotel Amrit, Hotel Libra, Hotel Mayur, Hotel Naveen, Hotel Neeraj, Hotel Raj Mahal, Hotel Samart Heaven, Hotel Swavarn, Hotel Crystal Palace. Out of afore said few one are standard type, which are providing boarding and lodging facility to customers. And there locations are also not satisfactory from the angle of safty. This proposed Hotel cum Banquet hall will also provide boarding and lodging facility of higher standard in comparison to existing one.

Mostly the Banquet Halls in Meerut having adequate area also situated in outer boarder of city and not suitable for local, personals and as well as out siders. How ever the proposed building consisting Banquet Hall is centrally located in Mangal Pandey Nagar, Meerut will provide comfortable, easy and safe facilities.

FIRM AND ITS PROMOTERS

The Firm M/s Purl Arcade was incorporated by Mr. T. C. Puri, the reputed business man of Meerut during the year 2009.

The firm is constructing an arcade consisting restaurants, shopping areas, coffee shops, banquets facilities, conference halls, business centers, hotel accommodations, offices etc. with star facilities.

MARKET SCOPE

Major Demand Drivers in India, the common factors that drive the demand for hotel rooms, facilities, and service are the following:

Growth in Economy

The growth in GDP has increased from 3.8 percent in 2002-03 to over 8 percent in 2006-07. By 2025, the Indian economy is projected to be about 60 percent the six of the US economy. The transformation into a tn-polar economy will be complete by 2035, with the Europe. By 2035, India is likely to be a larger growth driver than the six large countries in the EU, though its impact will be a little over half that of the US. India, which is now the fourth largest economy in terms of purchasing power parity, is expected to overtake Japan and become third major economic power in the next ten years.

Growth in IT Sector

India has built up valuable brand equity in global information technology markets. In IT enabled service (ITeS), India has emerged as the most preferred destination for business process outsourcing (BPO), a key driver of growth for the software industry and the services sector. The ITeS industry in India began to evolve in the early nineties when companies like American Express, British Airways, GE, and Swissair set up offshore operations in India. Today a large number of foreign affiliates operate IT-enabled services in India covering customer care, finance, human resources, billing and payment services, administration and content development, etc. The annual growth rate of India’s software exports has been consistently over 50 percent since 1991. No other India industry has performed so well against global competition. In addition to the export market, all of these segments have a domestic market component as well.

Commonwealth Games 2010

Finance Ministry has announced that the provision for building tourist infrastructure will be increased from Rs.4230.000 Millions in 2006-07 to Rs.5200.000 Millions in 2007-08. It has also proposed to provide Rs.1500.000 Millions to the Ministry of Youth Affairs and Sports and Rs.3500.000 Millions to the Delhi Government for the Commonwealth Games in 2010. India was the host of 1982 Asia Games that was spectacular success. The Union Budget 2007-08 has also provided Rs.500.000 Millions for the Commonwealth Youth Games to be held in Pune in 2008.

The Center has already identified 50 projects with an estimated expenditure of US $298 million. The projects include construction of new grade separators, and bridges besides improvement of some major liking roads. Although no estimate has been made regarding the number of tourists expected to arrive in the National Capital Territory of Delhi (NCT) during the Commonwealth Games, the Tourism Ministry assessed that the city will require 30,000 hotel rooms and a total of approximately 40,000 rooms in the NCR to meet the requirements of the requirements of the Commonwealth Game The ministry is in constant touch with the various Land Owning Agencies like Railways.

MEDICAL TOURISM

Medical tourism industry in India estimated at US $ 333 million in 2004 is projected to touch US $ 2 billion per annum by 2012. Approximately 180,000 patients visited India in 2004 for medical treatment. Three has been a surge of patients from Africa, South and West Asia that lack adequate healthcare facilities. New Delhi and Gujarat have become a prime destination for cardiac care, Chennai for eye care, while Kerala and Karnataka for state-of-the-art Ayurvedic healing. The medical tourists include a large number of Non-Resident Indians. Among the factors that make India an attractive proposition for medical treatment in cardiology, cosmetic and orthopedic surgery, dentistry, eye care, etc. The cost of comparable treatment in India is around one-eighth of the cost in the West. For instance, a cardiac procedure costs anywhere between US $ 40,000 to 60,000 in the US, US $ 30,000 in Singapore, US $ 12,000 to 15,000 in Thailand, it costs only US $ 3,000 to 6,000 in India. The overall success rate of cardiac bypasses in India is 98.7 percent as compared to 97.5 percent in the US.

The healthcare systems in some of the developed countries like the UK are under severe pressure. For instance, the National Health Service in the UK has a long list of patients waiting for over a year for surgery. In the US, over 50 million patients are uninsured. Many of the insurances companies in the Us such as Blue Cross and Blue Shield and UK Health insurer Bupa have tied-up with private India hospital chains.

INFRASTRUCTURE

Site:

The site of the proposed Hotel is situated at well developed area situated at Garh Road surrounded by the well developed business area at Meerut and the area is about 1582 Sq. Mtrs which is well suitable for the proposed complex. The site is situated on State highway surrounded by Delhi Hapur Bye Pass, Mawana Road, Garh Road, Hapur Road, Etc. Hence the approach is highly suitable to the site.

Power and Fuel:

It has been proposed to have an electric connection of 650 KVA with stand by arrangements of Invertors, UPS, Generators having aggregate load of 445 KVA.

Effluent:

The Hotel shall not generate any effluent being non-polluting industry.

Water:

The Hotel will require water for human consumption. A provision of 4” bore tube wells has been made in the project.

Manpower:

The Company requires services of more than 100 personnel at various functional level which are easily available near by the site.]

Transportation:

The site is well connected by road and is on Broad Guage Railway line and therefore road and rail transport facilities shall be available.

PRESENT STATUS

The Firm has already been registered with the District Industries Centre, Meerut vide Entrepreneurs Memorandum Number 090072200821 PART-1 dated 13.09.2010

Site has already been finalized. Construction work is under full swing.

Sales Tax Registration has been obtained.

An electric connection for 650 KVA has already been sanction by UPPVCNL, Meerut. The electrification work is under progress.

NOC from Fire Control Office has already been obtained.

Drawings of the Building Plans have already been approved by the Meerut Development Authority.

LICENSING AUTHORITIES IN INDIA

§ Certificate of incorporation dated 29.07.2006 CIN No.U51101DL2006PTC151410 has already been obtained from the Registrar of Companies, Delhi and Haryana, Delhi.

§ Lease deed with U P Avas Vikas has already been executed in favour of the Company.

§ Application for Importer-exporter code have already been moved..

§ Drawings of the Building Plans have already been moved to the Avas Vikas Parishad.

§ Application for the registration with district Industries Center have already been moved.

LAND

Particulars	(Rs. In Millions)

Location	Khasra No.5804, 5805, Garh Road, Merrut Owned by theProprietor of the firm Mr. Tara Chand Puri.

Area of Land (in Sq. Mtr.)	1581.50

Rates (In Rs. per sq. Mtr.)	0.000

Cost of Land	56.716

Add: Regn and stamp duty @ 12.5%	0.000

Cost of Land	56.716

Earth Filling	0.000

Total Cost of Land or Say Rs. in Millions	56.716

Cost Already Incurred	56.716

Cost to be incurred	0.000

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TRADE REFERENCE:

· Hari Om Anand

H – 256, Shastri Nagar, Meerut, Uttar Pradesh, India

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.44.65
UK Pound	1	Rs.63.28
Euro	1	Rs.71.91

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.

MIRA INFORM REPORT

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