MIRA INFORM REPORT

Report Date :

16.05.2011

IDENTIFICATION DETAILS

Name :	ESSEL FOUNDRIES PRIVATE LIMITED
Registered Office :	Kothi No.86, Pocket C-9, Sector – 8, Rohini, New Delhi - 110085
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	28.03.1995
Com. Reg. No.:	55-66832
Capital Investment / Paid-up Capital :	Rs.10.000 Millions
CIN No.: [Company Identification No.]	U74900DL1995PTC066832
IEC No.:	0505050625
TAN No.: [Tax Deduction & Collection Account No.]	DELE01378G/ DELE03950C
PAN No.: [Permanent Account No.]	AAACE2103K
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturers and Exporters of Switch Gear.
No. of Employees :	40 (Approximately)

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 a well-established and reputed company having satisfactory track. Trade relations are reported as fair. The valuation reported and networth statement provided seems to be acceptable. 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. Gordhan Dass Agarwal
Designation :	Director
Contact No.:	91-9810274665
Date :	12.05.2011

LOCATIONS

Registered Office :	Kothi No.86, Pocket C-9, Sector – 8, Rohini, New Delhi – 110085, India
Mobile No.:	91-9810274665 (Mr. Gordhan Dass Agarwal)
E-Mail :	account.essarferro@gmail.com suresh_associates@rediffmail.com
Area :	2250 sq. ft.
Location :	Owned
Factory :	40/3, Industrial Area, Site – IV, Shaibabad, Ghaziabad – 201010, Uttar Pradesh, India
Tel. No.:	91-120-3200445
Fax No.:	91-120-4167210
Email :	Info.essarferro@gmail.com
Area :	49482 sq. ft.
Location :	Owned

DIRECTORS

(AS ON 30.09.2010)

Name :	Mr. Gordhan Dass Agarwal
Designation :	Director
Address :	Plot No.86, Pocket C-9, Sector – 8, Rohini, Delhi – 110085, India
Date of Birth/Age :	16.09.1952
Qualification :	Intermediate
Experience :	15 years
Date of Appointment :	28.03.1995
Name :	Mrs. Sushila Devi Agarwal
Designation :	Director
Address :	Plot No.86, Pocket C-9, Sector – 8, Rohini, Delhi – 110085, India
Date of Birth/Age :	22.06.1953
Qualification :	Matric
Experience :	15 years
Date of Appointment :	28.03.1995
Name :	Mr. Rahul Agarwal
Designation :	Director
Address :	Plot No.86, Pocket C-9, Sector – 8, Rohini, Delhi – 110085, India
Date of Birth/Age :	30.08.1984
Qualification :	MBA
Experience :	5 years
Date of Appointment :	18.07.2009

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2010)

Names of Shareholders	No. of Shares
Gordhan Dass Agarwal	564470
Sushila Devi Agarwal	265530
RSG Impex Private Limited	170000
Total	1000000

(AS ON 30.09.2010)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers and Exporters of Switch Gear.
Brand Name :	Glow, GSR, Essar
Exports :
Products :	Switch Gear and Light
Countries :	Nigeria Routing through Hong Kong
Terms :
Selling :	Credit (30 days)
Purchasing :	Credit (30 days)

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars		Actual Production
Copper Cable	Mtrs.	7504
Change Over	Nos.	51925
Main Switch and Fuses	Nos.	31976
Others	Nos.	235800

GENERAL INFORMATION

Customers :

· Rich Horse Limited

Global Electric and Allied Products Limited

Best Ringo Limited

No. of Employees :

40 (Approximately)

Bankers :

· Dena Bank

Shiva Market, Pitampura, Delhi, India

· HDFC Bank, Delhi

Punjab National Bank, Delhi

ING Vysya Bank Limited, Ghaziabad

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
HDFC Bank, Delhi (Secured against hypothecation of Car)	0.054	0.111
Kotak Mahindra Prime Limited (Secured against hypothecation of Car)	0.628	0.870
Total	0.682	0.981
Unsecured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
From Directors	2.353	2.124
Total	2.353	2.124

Banking Relations :	--
Auditors :
Name :	Suresh and Associates Chartered Accountant
Address :	3-A, Bigjo’s Tower, Netaji Subhash Place, Pitam Pura, Delhi – 110034, India
Tel. No.:	91-11-27356916/ 27356917/ 47047486
Fax No.:	91-11-27356918
Email :	suresh_associates@rediffmail.com suresh_associates2002@yahoo.com
Associates/Subsidiaries :	· Essar Ferro Alloys Company 97/4 and 97/5, Daman Industrial Estate, Village-Kadaiya, Daman – 396210, India Line of Business: Manufacturer of Cables and winding Wires.

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Share	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Share	Rs.10/- each	Rs.10.000 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		10.000	10.000	10.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		25.747	25.393	24.765
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		35.747	35.393	34.765
LOAN FUNDS
1] Secured Loans		0.682	0.981	0.160
2] Unsecured Loans		2.353	2.124	1.917
TOTAL BORROWING		3.035	3.105	2.077
DEFERRED TAX LIABILITIES		0.148	0.206	0.002
TOTAL		38.930	38.704	36.844
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		19.391	22.023	24.584
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	27.582	34.618	35.507
	Sundry Debtors	0.000	0.151	28.744
	Cash & Bank Balances	1.591	5.040	1.630
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	5.143	9.366	14.065
Total Current Assets		34.316	49.175	79.946
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	2.460	21.657	65.946
	Other Current Liabilities	11.879	10.181	1.004
	Provisions	0.438	0.656	0.7360
Total Current Liabilities		14.777	32.494	67.686
Net Current Assets		19.539	16.681	12.260
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		38.930	38.704	36.844

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	46.576	89.350	112.789
		Other Income	4.864	6.757	4.926
		TOTAL (A)	51.440	96.107	117.715
Less	EXPENSES
		Increase/ (Decrease) in Closing Stock	0.703	4.460	(12.112)
		Cost of Raw Materials Consumed	35.721	73.582	109.661
		Manufacturing Expenses	7.061	7.778	7.089
		Office and Administrative Expenses	3.488	4.193	4.299
		Selling and Distribution Expenses	1.647	2.259	2.489
		TOTAL (B)	48.620	92.272	111.426
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2.820	3.835	6.289
Less	FINANCIAL EXPENSES (D)		0.067	0.115	0.105
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2.753	3.720	6.184
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.268	2.685	2.955
	PROFIT BEFORE TAX (E-F) (G)		0.485	1.035	3.229
Less	TAX (H)		0.131	0.407	0.244
	PROFIT AFTER TAX (G-H) (I)		0.354	0.628	2.985
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		13.593	12.965	9.980
	BALANCE CARRIED TO THE B/S		13.947	13.593	12.965
	EARNINGS IN FOREIGN CURRENCY		46.139	134.020	111.789
	Earnings Per Share (Rs.)		0.35	0.63	2.98

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.69	0.65	2.54
Net Profit Margin (PBT/Sales)	(%)	1.04	1.16	2.86
Return on Total Assets (PBT/Total Assets}	(%)	0.90	1.45	3.09
Return on Investment (ROI) (PBT/Networth)		0.01	0.03	0.09
Debt Equity Ratio (Total Liability/Networth)		0.50	1.01	2.01
Current Ratio (Current Asset/Current Liability)		2.32	1.51	1.18

LOCAL AGENCY FURTHER INFORMATION

OPERATING STATEMENT

(RS. IN MILLIONS)

Particulars	31.03.2011	31.03.2012	31.03.2013
	(Estimated)	(Projected)	(Projected)
Gross Sales
Domestic	51.200	56.300	51.900
Export	--	--	--
Add: Other Revenue Income	2.816	3.097	3.405
Sub Total	54.016	59.397	65.305
Less : Excise Duty	--	--	--
Net Sales	54.016	59.397	65.305
% rise [+] or fall [-] in net sales as compared to previous year	9.35%	9.96%	31.94%
Cost of Sales
Raw Materials Consumed
- Imported	--	--	--
- Indigenous	39.674	45.237	49.780
Others Stores and Spares
- Imported	--	--	--
- Indigenous	0.595	0.679	0.747
Power and Fuel	1.190	1.357	1.493
Direct Wages (Factory Wages and Salaries)	4.321	4.752	5.224
Repairs and Maintenance	--	--	--
Other Direct Expenses	--	--	--
Other Manufacturing Expenses	1.587	1.809	1.991
Depreciation	2.041	1.837	1.653
Sub Total	49.408	55.671	60.889
Add: Opening Stock-In-Process	2.386	4.038	4.427
Deduct: Closing Stock-In-Process	4.038	4.427	4.867
Cost of Production	47.756	55.282	60.450
Add: Opening Stock of Finished Goods	14.042	12.224	13.401
Deduct: Closing Stock of Finished Goods	12.224	13.401	14.732
SUB TOTAL (Total cost of sales)	49.573	54.106	59.119
Selling, General and Administrative Expenses	2.431	2.598	2.939
Sub Total	52.004	56.704	62.057
Operating Profit before interests	2.012	2.693	3.247
Interests on Term Loan	0.076	0.050	0.018
Interests on WC Limit and Bank Charges	0.803	1.425	1.425
Operating profit after Interests	1.060	1.137	1.715
Non Operating Income	0.000	0.000	0.000
Non Operating Expenses	0.426	0.426	0.626
Net of Non-operating Income and Expenses	(0.426)	(0.426)	(0.626)
Profit before Tax/ Loss [PBT]	0.634	0.711	1.089
Provision for taxes	0.190	0.213	0.327
Net Profit / Loss [PAT]	0.444	0.498	0.762
Dividend	0.000	0.000	0.000
Retained Profit	0.444	0.498	0.762
Retained profit/ Net Profit % age	100%	100%	100%

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

BALANCE SHEET

(RS. IN MILLIONS)

Particulars	31.03.2011	31.03.2012	31.03.2013
CURRENT LIABILITIES	(Estimated)	(Projected)	(Projected)
Short Term Borrowing from Bank
i. From Application Bank	9.500	9.500	9.500
ii. From Other Banks	0.000	0.000	0.000
SUB TOTAL (A)	9.500	9.500	9.500
Short Term Borrowings From Others	0.000	0.000	0.000
Sundry Creditors (Trader)	3.261	3.718	4.092
Advances Payment from customers	2.970	3.267	3.593
Provision For Taxes	0.000	0.000	0.000
Creditor for Expenses	0.000	0.000	0.000
Dividend Payable	0.000	0.000	0.000
Other Statutory Liabilities (due within one years)	0.0000	0.000	0.000
Installments of term loans and Deferred Payment Credits	0.000	0.000	0.000
Other current Liabilities and Provisions (due within one years)	0.482	0.530	0.583
SUB TOTAL (B)	6.712	7.515	8.268
TOTAL CURRENT LIABILITIES	16.212	17.015	17.768
TERM LIABILITIES
Debentures	0.000	0.000	0.000
Redeemable Preference Shares	0.000	0.000	0.000
Term Loans	0.000	0.000	0.000
Deferred Payment Credits	0.000	0.000	0.000
Unsecured Loans	0.000	0.000	0.000
Term Deposit	0.000	0.000	0.000
Other Term Liabilities	0.482	0.282	0.000
TOTAL TERM LIABILITIES	0.482	0.282	0.000
Deferred Tax Liability	0.148	0.148	0.148
Unsecured Loans	0.000	0.000	0.000
TOTAL OF OUTSIDE LIABILITIES	16.842	17.445	17.916
NET WORTH
Shares Capital	10.000	10.000	10.000
Application Money	0.000	0.000	0.000
Partner’s Current A/c	0.000	0.000	0.000
General Reserve	26.191	26.688	27.450
Revolution Reserve	0.000	0.000	0.000
Reserves and Surplus	0.000	0.000	0.000
Unsecured Loans	0.000	0.000	0.000
Share Premium Account	0.000	0.000	0.000
Surplus (+) or deficit (-) in Profit and Loss Account	0.000	0.000	0.000
TOTAL NET WORTH	36.191	36.688	37.450
TOTAL LIABILITIES	53.033	54.133	55.366
ASSETS
CURRENT ASSETS
Cash and Bank Balance	0.395	0.278	0.206
Investments [Other than long term investments]	0.000	0.000	0.000
Receivables other than deferred and exports	0.000	0.000	0.000
Export receivables	4.440	4.882	5.367
Government and other Trustee securities	0.000	0.000	0.000
Fixed deposit with bank	0.000	0.000	0.000
Domestic receivable Including BP/ BD	0.000	0.000	0.000
INVENTORY
Raw Materials
- Imported	0.000	0.000	0.000
- Indigenous	9.865	11.154	12.275
Stock in Process	4.038	4.427	4.867
Finished Goods	12.224	13.401	14.732
Other Consumable Spares	0.000	0.000	0.000
Advances to suppliers	0.000	0.000	0.000
Advance Payment of Taxes	0.000	0.000	0.000
Other Current Assets	4.422	4.180	3.762
TOTAL CURRENT ASSETS	35.384	38.321	41.208
FIXED ASSETS
Gross Block (Land and Building Machinery)	33.153	33.153	33.153
Depreciation to date	15.734	17.571	19.225
NET BLOCK	17.419	15.582	13.928
OTHER NON CURRENT ASSETS
Investments in sub Cos./ Affiliates	0.000	0.000	0.000
Advances to suppliers of Capital goods and contractors	0.000	0.000	0.000
Investment in Others	0.000	0.000	0.000
Other Non-Current Investment	0.230	0.230	0.230
TOTAL OTHER NON CURRENT ASSETS	0.230	0.230	0.230
Intangible Assets	0.000	0.000	0.000
TOTAL ASSETS	53.033	54.133	55.366
Tangible Net Worth (TNW)	36.191	36.688	37.450
Net Working Capital (NWC)	19.172	21.307	23.440
Current Ratio	2.18	2.25	2.32
TOL/ TNW	0.47	0.48	0.48
TTL/ TNW	0.01	0.01	0.00

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COMPARATIVE STATEMENT OF CURRENT ASSETS AND CURRENT LIABILITIES

(RS IN MILLIONS)

Particulars	31.03.2011	31.03.2012	31.03.2013
	(Estimated)	(Projected)	(Projected)
Raw Materials
[a] Imported	0.000	0.000	0.000
Months Consumption	0.000	0.000	0.000
[b] Indigenous	9.865	11.154	12.275
Months Consumption	2.98	2.96	2.96
Other consumable spares (Excluding those included 1 above)
[a] Imported	0.000	0.000	0.000
Months Consumption	0.000	0.000	0.000
[b] Indigenous	0.000	0.000	0.000
Months Consumption	0.000	0.000	0.000
Stock in process	4.038	4.427	4.867
Months cost of production	1.01	0.96	0.97
Finished goods	12.224	13.401	14.732
Months cost of sales	2.96	2.97	2.99
Receivable other than export and deferred receivables [including bills purchased and discounted by bankers]	4.440	4.882	5.367
Months domestic sales	1.04	1.04	1.04
Export receivables [including bills purchased and discounted by bankers]	0.000	0.000	0.000
Months export sales	0.000	0.000	0.00
Advances to suppliers of raw materials and stores/ spares consumable	0.000	0.000	0.000
Other current Assets including cash and bank balances and deferred receivable due within one year	4.817	4.458	3.967
TOTAL CURRENT ASSETS	35.384	38.321	41.208
B CURRENT LIABILITIES
[Other than bank borrowing for working capital]
Creditors for purchases of raw materials and stores and consumable spares	3.261	3.718	4.092
Months Purchases	0.70	0.71	0.71
Advances from customers	0.000	0.000	0.000
Statutory Liabilities	0.000	0.000	0.000
Other current liability Specify Major Items) Current Loan Inst.	0.482	0.530	0.583
Short term borrowing dividend payable, installment of DPG public deposit, debentures etc	9.500	9.500	9.500
TOTAL	13.243	13.748	14.175

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COMPUTATION OF MAXIMUM PERMISSIBLE BANK FINANCE FOR WORKING CAPITAL

(RS. IN MILLIONS)

Particulars	31.03.2011	31.03.2012	31.03.2013
	(Estimated)	(Projected)	(Projected)
FIRST METHOD OF LENDING
Total Current Assets	35.384	38.321	41.208
Other current Liabilities (Other than Bank borrowings)	6.712	7.515	8.268
Working Capital Gap	28.672	30.807	32.940
Min. Stipulated net working capital (25% of WCG)	7.168	7.702	8.235
Actual/ Project Net Working	19.172	21.307	23.440
Item 3 minus item 4	21.504	23.105	24.705
Item 3 minus item 5	9.500	9.500	9.500
Maximum permissible bank finance	9.500	9.500	9.500
Excess borrowing representing Shortfall in NWC	0.000	0.000	0.000

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NETWORTH STATEMENT

BALANCE SHEET OF MR. GORDHAN DASS AGARWAL

(RS. IN MILLIONS)

Liabilities	31.03.2010	Assets	31.03.2010
Capital		Shares
Opening Balance	25.947	Essel Foundries (Private) Limited No.228470E shares	0.443
Add:		Gemson Mett (Private) Limited	0.100
Profit Essar Ferro Alloys Co.	8.147
Dividend	0.017	Loan
Intt- PPF	0.000	Essel Foundries (Private) Limited	2.353
Interests	0.003	Soni Agarwal	0.150
Intt- ESSEL	0.255	Essar Ferro alloys Company	24.066
Profit Residential House	0.000	Advance to Rotary G/H/S Limited	0.057
Salary	0.144	Subhash Agarwal	0.021
	34.513
Less:		Cash in Hand	0.800
Withdrawals	0.203	Jewellery	0.049
	34.310	House Hold Goods	0.146
		Gopal Agarwal	0.500
Rahul Agarwal	0.025	Sushila Agarwal	0.425
Essel International Limited	0.143	Gold Craff G/H Society	1.345
		Residential House	3.891
		Dena Bank – Mumbai	0.005
		Dena Bank – Delhi	0.088
		Office-Kanpur Kiran Chand Bhandri	0.038
		Dena Bank – Daman	0.001
Total	34.478	Total	34.478

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NETWORTH STATEMENT

BALANCE SHEET OF MRS. SUSHILA DEVI AGARWAL

(RS. IN MILLIONS)

Liabilities	31.03.2010	Assets	31.03.2010
Capital		Essar Ferro alloys Company	22.253
Opening Balance	17.771	House Hold Goods	0.200
Add:		Agricultural Land	0.016
Salary	0.132	Residential House	1.002
Dividend	0.018	Cash in Hand	0.370
Share Profit from Essar Ferro Alloys Company	8.147	Agricultural Land	1.498
Bank Interests	0.002	Gopal Agarwal	0.300
	26.070	Soni Agarwal	0.500
Less:		Flat – Essal Tower	5.051
Withdrawals	0.088	Essel Foundries Private Limited- Shares	0.171
	25.982	Dena Bank – Daman /Mumbai	0.005
		Dena Bank – Delhi	0.092
Jindal Financial and Investment Services	5.000
Essel Housing Project Private Limited	0.051
G D Aggarwal	0.425
Total	31.458	Total	31.458

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NETWORTH STATEMENT

BALANCE SHEET OF MR. RAHUL AGARWAL

(RS. IN MILLIONS)

Liabilities	31.03.2010	Assets	31.03.2010
Capital		Dena Bank	0.107
Opening Balance	0.628	Cash in Hand	0.124
Add:		Essar Ferro Alloys Company	0.282
Income	0.333	Gordhan Dass Agarwal	0.025
Bank Interests	--	Society	0.067
Interests from Essar	--
Salary	--
	0.961
Less:
Withdrawals	0.356
	0.605
Total	0.605	Total	0.605

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VALUE OF FRINGE BENEFITS IN TERMS OF SECTION 115 WC READ WITH SECTION 115WB FOR THE ASSESMENT YEAR 2009-2010

(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	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	Nil	20%	Nil
115WB(2)(C)	Conference (Other than fee for participation by the employees in any conference)	Nil	20%	Nil
115WB(2)(D)	Sales promotion including publicity	0.053	20%	0.011
115WB(2)(E)	Employees’ Welfare	Nil	20%	Nil
115WB(2)(F)	Conveyance	0.036	20%	0.007
115WB(2)(G)	Use of hotel, boarding and lodging facilities	0.008	20%	0.002
115WB(2)(H)	Repair, Running (including fuel), maintenance of motor cars and the amount of depreciation thereon	0.292	20%	0.058
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	0.118	20%	0.024
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)	0.406	5%	0.020
Total		0.913		0.122

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VALUATION REPORT OF THE PROPERTY

PART – I

GENERAL INFORMATION

Purpose for which valuation is made	To assess the fair market value for the property
Date on which valuation is made	04-03-2011
Name of the owner/owners	M/s Essel Foundaries Private Limited through Mr. Goverdhan Dass Agarwal
If the property is under joint ownership/co-ownership, share of each such owner/ or the share undivided	M/s Essel Foundaries Private Limited through Mr. Goverdhan Dass Agarwal
Brief description of the property	Valuation is for Industrial Building
Location, street, ward no.	Industrial Plot No-40/3.Site-4, Sahibabad, District Ghaziabad
Survey/ Plot No. of land	Industrial Plot No-40/3.Site-4, Sahibabad, District Ghaziabad
Is the property is situated in Residential/ Commercial/ Mixed/ Industrial area	Industrial
Classification of the locality- High/ Middle/ Poor class.	Upper Middle
Proximity of civil amenities like School, Hospitals, Bus Top, Market etc	Available within distance 1-2 km
Means and proximity to surface communication by which the locality is Served	Private and Public transport
LAND:
Area of land supported by documentary proof, space dimensions, and physical features	Plot area 5498 sq. yds (4597 sqm)
Road, street or land on which land is abutting	Located on the internal roads of the area
Boundaries of the property	North: 40 ft Road South: Plot no 40/2 East: Plot no-40/4 West: Plot no-40/2 A
Is it freehold or on leasehold	Leasehold
Is there any restrictive convent with regard to use of land, If so, attach a copy of convent	Included in the town planning
Does the land fall in an area included in any town planning of Govt. or any statutory both’? If so, give particulars	UP State Industrial Development Corporation Limited
IMPROVEMENTS
Give Technical details of the building on a separate sheet	Furnished
Is the building Owner occupied tenant/ both	Owner
SALES
Give instance of immovable property if available.	No recent sales instances available
If sales instances are not available or not relied upon, the basis of land rate.	Based on enquires made from the market
Year of commencement of construction and year of completion	About 30 years back with renovations made time to lime Both

TECHNICAL DETAILS OF PROPERTY

No of floors and ht. of each floor	Ground floor only GF with various heights. Office block with RCC roofs having 12 ft ht And ACC roofs work sheds with average 15’6” to 27’ Office block RCC roof 1900 sft Work shed RCC roof2365 sft Work sheds/stores with ACC Roof = l6000sft
Year of construction	About 30 years back
Estimated future life	30 years
Type of construction	ACC/ Tin Shed/ RCC
Type of foundation	Spread Foundation
Walls/partitions	Brick Work in Cement Mortar.
Doors and windows	Steel doors and windows, M.S. Rolling Shutters
Flooring floor wise	Ordinary Conc. Flooring
Finishing floor wise	Normal
Roofing and terracing floor wise	ACC / Tin Shed supported by angle iron truss and RCC Roofing
Internal wiring	Medium class wiring
Class of fitting,-superior/ordinary/poor	Ordinary
Sanitary installation- WC/ lavatory basins/sinks/bath tubs /geysers/ fittings etc	4 WC, 4 Wash basins.
Compound wall- ht. length and type of construction	Brick Work, Full height
Over head rank-location, capacity and type of construction	On terrace
Sewage disposal connected to main sewer or septic tank.	Open Drainage Systems.

PART – II VALUATION

The valuation report is based on the information, data, documents supplied by the Owner, personal inspection at site on 04-03-2011 and in addition enquiries made.

The building is built on plot area 5498 sq. yd (4597 sqm) having Office block, nos. of work shed and Store etc. The building is constructed with B/W in cement Mortar, ordinary cement cone. Flooring. RCC roof for office block and one work shed. Others Work sheds, stores etc are of ACC roof supported by angle iron trusses. Steel doors and windows/MS rolling shutters. It is lease hold property and near to Anand Vihar ISBT. The property is in the developed Sahibabad Industrial Area.

LAND:

1. Area of plot: 5498 sq. yds (4597 sqm)

2. Prevailing Market Rate: Rs.22100 / to 24000/ per sqm

3 Assessed! Adopted rate of valuation: Rs.22100/ per sqm

4. Estimated value of the land: Rs.101.594 Millions

BUILDING:

Items	Covered area in sqft	Estimated Replacement Cost in sq. ft. in Rs.	Replacement Cost	Depreciation Cost 45%	Net Value (Rs. in Millions)
Office Block	1900	600/-	1140000	513000	0.627
Work Shed with RCC Roof	2365	600/-	1419000	636750	0.780
Work Sheds/ Stores etc.	16000 sft	500/- (Average)	800000	3600000	4.400
Total			5.807

SUMMARY OF VALUATION

Land	101.594
Building	5.807
Other Amenities / Misc.	--
Total Fair Market value	107.401
The overall conservative value of the Property (75% of FMV as portion of property is on rent)	Rs.91.290 Millions
Insurance Value	Rs.91.290 Millions

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FIXED ASSETS

· Land and Building

Residential Flats

Plant and Machinery

Furniture and Fixture

Mould and Dies

Vehicles

Scooter

Computer

Office Equipment

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.44.91
UK Pound	1	Rs.73.06
Euro	1	Rs.64.03

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.