MIRA INFORM REPORT

Report Date :

25.05.2012

IDENTIFICATION DETAILS

Name :	SCOPE INDUSTRIES (INDIA) LIMITED (w.e.f.15.06.2010)
Formerly Known As :	JAIN MARBLE UDHYOG LIMITED JAIN MARBLE UDHYOG PRIVATE LIMITED
Registered Office :	No.8-2-293/82/L/A Flat No.101, Raj Residency, Plot No.280-A, Road No.12, Banjara Hills, Hyderabad – 500034, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	19.11.1983
Com. Reg. No.:	01-004255
Capital Investment / Paid-up Capital :	Rs.74.463 Millions
CIN No.: [Company Identification No.]	L45200AP1983PLC004255
IEC No.:	0911018646
TIN No.:	28411563077
TAN No.: [Tax Deduction & Collection Account No.]	HYDJ01065B
PAN No.: [Permanent Account No.]	AABCJ2068B
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Infrastructure Development and Real Estate Activity.
No. of Employees :	29 (Approximately) (Office – 19 and Branch – 10)

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company has recommenced new business activity from the financial year 2011. There appears a huge accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some cautions. It would be advisable to the 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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. Damaraju Srihari Charan
Designation :	Whole Time Director
Contact No.:	91-9848882527
Date :	24.05.2012

LOCATIONS

Registered Office :	No.8-2-293/82/L/A Flat No.101, Raj Residency, Plot No.280-A, Road No.12, Banjara Hills, Hyderabad – 500034, Andhra Pradesh, India
Tel. No.:	91-40-23555678
Mobile No.:	91-9848882527 (Mr. D. Srihari Charan) 91-9550070999 (Mr. Pavan Vemuri)
Fax No.:	91-40-23559955
E-Mail :	scopeinvestors@gmail.com info@scopeind.com srihari.charan@scopind.com cmd@scopeind.com
Website :	http://www.scopind.com
Area :	2000 sq. ft.
Location :	Rented
Site Office :	Beside Kothaya Camp, C/O Samskar Plan Model School, Varni, Nizambad, Andhra Pradesh, India
Area :	1000 sq. ft.
Location :	Rented

DIRECTORS

(AS ON 31.03.2011)

Name :	Mr. Sriram Pavan Kumar Vemuri
Designation :	Chairman and Managing Director
Address :	8-3-1-43, Plot No. 142, Srinagar Colony, Hyderabad – 500073, Andhra Pradesh, India
Date of Birth/Age :	15.08.1979
Qualification :	M.B.A in Finance
Experience :	8 years
Name :	Mr. Damaraju Srihari Charan
Designation :	Whole Time Director
Address :	301, Saiveda Complex, Kundanbagh, Hyderabad – 500016, Andhra Pradesh, India
Date of Birth/Age :	30.08.1979
Qualification :	M.B.A.
Experience :	8 years
Name :	Mr. Sai Kumar Akella
Designation :	Director
Address :	H. No. 104, MIGH, Road No.1 K.P.H.B Colony, Kukatpally, Hyderabad - 500072, Andhra Pradesh, India
Date of Birth/Age :	09.06.1975
Qualification :	M.B.A Marketing
Experience :	9 Years
Name :	Mr. Sandadi Suresh Reddy
Designation :	Director
Name :	Mr. Tammina Eswara Rao
Designation :	Director
Name :	Mr. Mikkilineni Srikanth
Designation :	Director
Name :	Mr. Maturi Sudhakar
Designation :	Director
Name :	Mr. Sandolu John Vesli
Designation :	Director
Name :	Mr. Pattela Srinivas Goutam
Designation :	Director
Address :	Flat No. 305, Mountain View Apartments, Road No. 3, Arora Colony, Banjara hills, Hyderabad – 500034, Andhra Pradesh, India
Date of Birth/Age :	30.01.1987
Qualification :	B – Tech
Experience :	3 years

KEY EXECUTIVES

Audit Committee :	Mr. Tammina Eswara Rao – Chairman Mr. Sandadi Suresh Reddy – Member Mr. Maturi Sudhakar – Member
Remuneration Committee:	Mr. Tammina Eswara Rao – Chairman Mr. Sandadi Suresh Reddy – Member Mr. Maturi Sudhakar – Member
Investors and Shareholders Grievance Committee:	Mr. Tammina Eswara Rao – Chairman Mr. Sandadi Suresh Reddy – Member Mr. Maturi Sudhakar – Member

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.03.2012)

Names of Category	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1,301,101	17.47
Sub Total	1,301,101	17.47
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	1,301,101	17.47
(B) Public Shareholding
(1) Institutions	--	--
(2) Non-Institutions
Bodies Corporate	1,277,065	17.15
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	1,265,125	16.99
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	3,012,705	40.46
Any Others (Specify)	590,304	7.93
Non Resident Indians	136,702	1.84
Clearing Members	453,602	6.09
Sub Total	6,145,199	82.53
Total Public shareholding (B)	6,145,199	82.53
Total (A)+(B)	7,446,300	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	7,446,300	100.00

BUSINESS DETAILS

Line of Business :	Infrastructure Development and Real Estate Activity.
Terms :
Selling :	Credit (30-45 days)
Purchasing :	Cash and Credit (30 days)

GENERAL INFORMATION

Customers :

· Sirco Projects Private Limited

· Naftogaz India Private Limited

· KRR Infra Projects Private Limited

No. of Employees :

29 (Approximately) (Office – 19 and Branch – 10)

Bankers :

· Axis Bank

S. R. Nagar, Hyderabad, Andhra Pradesh, India

Facilities :

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
From Others	16.267	7.738
Total	16.267	7.738

Banking Relations :	--
Auditors :
Name :	Ramasamy Koteswara Rao and Company Chartered Accountant
Address :	Plot No: 238/A, MLA’s Colony, Road No 12, Banjara Hills, Hyderabad – 500034, Andhra Pradesh, India
Tel. No.:	91-40-23394982/ 23394985
Fax No.:	91-40-23430601
Email :	rkandco@gmail.com

CAPITAL STRUCTURE

(AS ON 17.05.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
10500000	Equity Shares	Rs.10/- each	Rs.105.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9346300	Equity Shares	Rs.10/- each	Rs.93.463 Millions

(AS ON 31.03.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
10500000	Equity Shares	Rs.10/- each	Rs.105.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7446300	Equity Shares	Rs.10/- each	Rs.74.463 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		74.463	61.085	61.085
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		36.508	36.507	36.507
4] (Accumulated Losses)		(89.087)	(95.580)	(97.832)
NETWORTH		21.884	2.012	(0.240)
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		16.267	7.738	0.000
TOTAL BORROWING		16.267	7.738	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		38.151	9.750	(0.240)
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.416	0.000	0.000
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		13.505	3.505	0.005
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	0.000	0.000	0.000
	Cash & Bank Balances	2.151	3.908	0.003
	Other Current Assets	14.014	3.133	0.033
	Loans & Advances	23.447	9.312	0.000
Total Current Assets		39.612	16.353	0.036
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	0.000	0.000	0.000
	Other Current Liabilities	0.040	6.229	0.000
	Provisions	15.342	3.879	0.281
Total Current Liabilities		15.382	10.108	0.281
Net Current Assets		24.230	6.245	(0.245)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		38.151	9.750	(0.240)

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	544.070	152.159	0.000
		Other Income		0.259	0.000
		TOTAL	544.070	152.418	0.000
Less	EXPENSES
		Expenditure on Contracts		147.395	0.000
		Staff Cost		0.455	0.018
		Administrative Expenses		1.573	0.155
		TOTAL	534.672	149.423	0.173
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		(Including Financial Expenses)	2.995	(0.173)
Less	FINANCIAL EXPENSES			0.148	0.000
	PROFIT BEFORE TAX		9.398	2.847	(0.173)
Less	TAX		2.904	0.595	0.000
	PROFIT AFTER TAX		6.494	2.252	(0.173)
	Earnings Per Share (Rs.)		0.87	0.37	(0.02)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.19	1.48	0.00
Net Profit Margin (PBT/Sales)	(%)	NA	1.87	(72.08)
Return on Total Assets (PBT/Total Assets}	(%)	23.48	17.41	(480.56)
Return on Investment (ROI) (PBT/Networth)		0.43	1.42	0.72
Debt Equity Ratio (Total Liability/Networth)		1.45	8.87	(1.17)
Current Ratio (Current Asset/Current Liability)		2.58	1.62	0.13

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	Yes
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of Contact person	Yes
Turnover of Firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-----
Estimation for coming financial year	No
Capital in the business	Yes
Details of sister concerns	No
Major Suppliers	No
Major Customers	Yes
Payments Terms	Yes
Export/ Imports Details (If applicable)	No
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	No
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	Yes
Incorporation details is applicable	Yes
Last Accounts filed at ROC	Yes
Major Shareholders, if available	No

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

SUMMARY OF LIMITS

(RS. IN MILLIONS)

Nature of Limits	Existing	Proposed	Increase / (Decrease)
FUND BASED Cash Credit against hypothecation of Stock and Book debts upto 90 days	--	47.500	47.500
NON FUND BASED Letter of Credit (Inland / Foreign) /Bank Guarantee	--	--	--
Total	--	47.500	47.500

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ASSESSMENT OF WORKING CAPITAL REQUIREMENT

OPERATING STATEMENT

(RS. IN MILLIONS)

Particulars	31.03.2012	31.03.2013
	(Estimated)	(Projected)
Gross Income
Income from Execution of Contract
- Domestic	650.000	900.000
- Export	--	--
Total	650.000	900.000
% rise [+] or fall [-] in net sales as compared to previous year	327.18%	38.46%
Other Income	--	--
Total	650.000	900.000
Cost of Sales
Direct Expense for Execution of Contract	629.649	865.283
Other Direct Expenses	--	--
Sub Total	629.649	865.283
Add: Opening Stock	--	--
Sub Total	629.649	865.283
Less: Closing Stock	--	--
Cost of Sales	629.649	865.283
Selling, General and Administrative Expenses	3.651	4.016
Operating Profit before interests and Depreciation	16.700	30.701
Interests	0.277	6.175
Depreciation	1.972	3.663
Operating Profit After Interests and Depreciation	14.451	20.863
Other Non Operating Income	--	--
Other Non Operating Expenses	--	--
Net of Non-operating Income and Expenses	--	--
Profit before Tax/ Loss [PBT]	14.451	20.863
Provision for taxes	3.021	4.361
Net Profit / Loss [PAT]	11.430	16.502
Net Profit and Loss	11.430	16.502
Retained profit/ Net Profit % age	100.00%	100.00%

NOTE:

Important Ratio's	2011-12	2012-13
i) Operating Profit / Net Sales ii) Net Profit / Net Sales iii) Cost of Sales / Total Income iv) Cash Accural v) Interest Coverage Ratio (ICR)	2.57% 1.76% 96.87% 134.02 49.38	3.41% 1.83% 96.14% 201.65 4.27

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ANALYSIS OF BALANCE SHEET

(RS. IN MILLIONS)

Particulars	31.03.2012	31.03.2013
	(Estimated)	(Projected)
Short Term Borrowing from Bank (Including Bills purchased, discounted and excess borrowing placed on repayment basis)
i. From Application Bank	47.500	47.500
ii. From Other Banks	--	--
iii. Of which BP and BD	--	--
SUB TOTAL(A)	47.500	47.500
Short Term Borrowings From Others	--	--
Sundry Creditors (Trader)	--	--
Advances Payment from customers	6.852	7.537
Provision For Taxes	3.021	4.361
Creditor for Expenses	--	--
Dividend Payable	--	--
Other Statutory Liabilities (due within one years)	3.764	4.517
Installments of term loans and Deferred Payment Credits	--	--
Other current Liabilities and Provisions (due within one years)	0.162	0.178
SUB TOTAL (B)	13.799	16.593
TOTAL CURRENT LIABILITIES	61.299	64.093
TERM LIABILITIES
Debentures	--	--
Redeemable Preference Shares	--	--
Term Loans	--	--
Deferred Payment Credits	--	--
Vehicles Loan	--	--
Term Loan HDFC Limited (Repayable after one year)	--	--
Unsecured Loans	--	--
Term Deposit	--	--
Deferred Tax Liability	--	--
Other Term Liabilities	12.738	13.738
TOTAL TERM LIABILITIES	12.738	13.738
TOTAL OF OUTSIDE LIABILITIES	74.037	77.832
NET WORTH
Paid-up Shares Capital	84.463	84.463
General Reserve	1.500	1.500
Other Reserves	35.007	35.007
Unsecured Loans	--	--
Share Premium Account	--	--
Surplus (+) or deficit (-) in Profit and Loss Account	(84.150)	(67.648)
TOTAL NET WORTH	36.821	53.323
TOTAL LIABILITIES	110.858	131.154
ASSETS
CURRENT ASSETS
Cash and Bank Balance	0.194	0.571
Investments [Other than long term investments]	13.505	13.505
Receivables other than deferred and exports	37.917	52.500
Export receivables	--	--
Installments of deferred receivable	--	--
INVENTORY
Stock in Process	--	--
Finished Goods	--	--
Other Consumable Spares	--	--
Advances to suppliers	20.000	24.000
Advance Payment of Taxes	13.000	18.000
Other Current Assets	--	--
TOTAL CURRENT ASSETS	84.616	108.576
FIXED ASSETS
Gross Block (Land and Building Machinery)	28.075	28.075
Depreciation to date	1.972	5.635
NET BLOCK	26.103	22.440
OTHER NON CURRENT ASSETS
Investments in sub Cos./ Affiliates	--	--
Advances suppliers of Capital goods and contractors	--	--
Investment in Others	--	--
Other Non-Current Investment	--	--
Loans and Advance	--	--
Deposits	0.139	0.139
TOTAL OTHER NON CURRENT ASSETS	0.139	0.139
Intangible Assets	--	--
TOTAL ASSETS	110.858	131.154
Tangible Networth	36.821	53.323
Net Working Capital	23.318	44.482
Current Ratio	01.38	1.69
TOL/ TNW	2.01	1.46
TTL/ TNW	1.24	0.96

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COMPARATIVE STATEMENT OF CURRENT ASSETS AND CURRENT LIABILITIES

(RS. IN MILLIONS)

Particulars	31.03.2012	31.03.2013
	(Estimated)	(Projected)
A CURRENT ASSETS
Raw Materials
[a] Imported	--	--
Months Consumption	--	--
[b] Indigenous	--	--
Months Consumption	--	--
Other consumable spares
Excluding those included 1 above
[a] Imported	--	--
Months Consumption	--	--
[b] Indigenous	--	--
Months Consumption	--	--
Stock in process	--	--
Months cost of production	--	--
Finished goods	--	--
Months cost of sales	--	--
Receivable other than export and deferred receivables [including bills purchased and discounted by bankers]	37.917	52.500
Months domestic sales	21	21
[excluding deferred payment sales]
Export receivables [including bills purchased and discounted by bankers]	--	--
(Months Export Sales)	--	--
Advance to Suppliers (RM and Stores)	20.000	24.000
Other current Assets Including cash and bank Balance and Deffered receivable	26.699	32.076
TOTAL CURRENT ASSETS	84.616	108.576
B CURRENT LIABILITIES
[Other than bank borrowing for working capital]
Creditors for purchases of raw materials and stores and consumable spares
[a] Imported	--	--
Months Consumption	--	--
[b] Indigenous	--	--
Months Consumption	--	--
Advances from customers	6.852	7.537
Statutory liabilities	3.764	4.517
Other current liability including short term borrowing dividend payable, installment of DPG public deposit, debentures etc	3.183	4.539
TOTAL CRRENT LIABILITIES	13.799	16.593

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COMPUTATION OF MAXIMUM PERMISSIBLE BANK FINANCE FOR WORKING CAPITAL

(RS. IN MILLIONS)

Particulars	31.03.2012	31.03.2013
	(Estimated)	(Projected)
Total current assets	84.616	108.576
Others Current Liabilities	13.799	16.593
[Other than bank borrowings)
[T L Installment due W/I One year’s]
Working capital gap [WCG]	70.818	91.982
Min. stipulated Net Working Capital – 25 % of total current assets other than Export Receivables	21.154	27.144
Actual/ Projected net working capital	23.318	44.482
Item 3 minus item 4	49.663	64.838
Item 3 minus item 5	47.500	47.500
Maximum permissible bank finance	47.500	47.500
Excess borrowings, if any representing shortfall in NWC	--	--

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FUND FLOW STATEMENT

(RS. IN MILLIONS)

Particulars	2012	2013
	(Estimated)	(Projected)
SOURCES
Net profit After Tax	11.430	16.502
Depreciation	1.972	3.663
Increase in Capital and other contribution	(72.202)	(84.150)
Increase in Term Liability including Public Deposits	5.000	1.000
Decrease in
- Fixed Assets	--	--
- Other Non Current Assets	--	--
Others	--	--
TOTAL SOURCES	(53.800)	(62.985)
USES
Net Loss	--	--
Decrease in Term Liability	--	--
Increase in
- Fixed Assets	28.075	--
- Other Non Current Assets	--	--
Dividend Payments	--	--
Other Unsecured Loans	--	--
TOTAL USES	28.075	--
Long Term Surplus (+) Deficit (-)	(81.875)	(62.985)
Increase/ Decrease in current Assets (as per details Given Below)	64.896	23.959
Increase/ decrease in current Liabilities other Than Bank Borrowing	3.691	2.795
Increase/ decrease Working Capital Gap	61.206	21.165
Net surplus (+)/ Deficit (-)	(143.080)	(84.150)
Increase/ (Decrease) in Bank Borrowings	47.500	--
Net Surplus/ (Deficit)	(95.580)	(84.150)
Opening Cash Balance	3.908	0.194
Closing Cash Balance	0.194	0.571

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NET WORTH STATEMENT

(MR. VEMURI SRIRAM PAVAN KUMAR)

This is to certify that net worth of Mr. Vemuri Sriram Pavan Kumar, Residing at Plot No.142, 8-3-1-43, Srinagar Colony, Hyderabad, as on 17/02/2012 is Rs.18.860 Millions detailed below.

Particulars	Rs. In Millions
IMMOVABLE ASSETS:
1. Beneficial Ownership in Residential Non Agricultural Land Situated at Manikonda admeasuring 400 Sq. Yards (Approximate Market Value)		15.000
MOVABLE ASSETS:
1. Gold and Jewellery (Approximate Market Value)	2.610
2. Cash and Bank Balances	0.100
3. Life Policies (Surrender Value)	1.500
4. Car	0.450	4.660
Total of Assets		19.660
LESS: LIABILITIES
I. Borrowings		0.800
Total Liabilities		0.800
NET WORTH		18.860

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NET WORTH STATEMENT

(MR. AKELLA SAI KUMAR)

This is to certify that net worth of Mr. Akella Sai Kumar, Residing at H. No. 104, MIGH, Road No. 1, KPHB Colony, Kukatpally, Hyderabad, as on 17/02/2012 is Rs.14.053 Millions as detailed below.

Particulars	Rs. In Millions
IMMOVABLE ASSETS:
1. Residential Flat at Singapore Township, Uppal, Hyderabad. (Market Value Approx.)	3.500
2. l/3rd Share in House Property Situated at Kukatpally admeasuring 311 Sq. Yards. (Approx. market value.)	8.333
		11.833
MOVABLE ASSETS:
I. Gold and Jewellery (Approx. market value.)	0.760
2. Cash and Bank Balances	0.100
3. Life Policies (Surrender Value)	1.000
4. Car	0.400
		2.260
Total of Assets		14.093
LESS: LIABILITIES
1. Borrowings		0.040
Total of Liabilities		0.040
NET WORTH		14.053

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NET WORTH STATEMENT

(MR. DAMARAJU SRI HARI CHARAN)

This is to certify that net worth of Mr. Damaraju Sri Hari Charan, Residing at 301, Saiveda Complex, Methodist Colony, Kundanbagh, as on 17/02/2012 is Rs.15.693 Millions as detailed below.

Particulars	Rs. In Millions
MOVABLE ASSETS:
1. Gold Jewellery (Approx. Market Value)	3.850
2. Cash and Bank Balances	0.100
3. Investment in 6,52,403 Shares of Scope Industries (Valued at Cost)	11.743
		15.693
Total of Assets		15.693
LESS: LIABILITIES
1. Borrowings		Nil
Total of Liabilities		Nil
NET WORTH		15.693

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

NET WORTH STATEMENT

(MR. PATTELA SRINIVAS GOUTAM)

This is to certify that net worth of Mr. Pattela Srinivas Goutam, Residing at Plot No.592, Flat No.305, Mountain View Apartments, Banjara Hills, Hyderabad, as on 17/02/2012 is Rs.0.800 Million as detailed below.

Particulars
	Rs.	Rs.
MOVABLE ASSETS:
1. Shares and Marketable Bonds (Market Value Approx.)	0.100
2. Cash and Bank Balances	0.100
3. Car	0.600
		0.800
Total of Assets		0.800
LESS: LIABILITIES
1. Borrowings		Nil
Total of Liabilities		Nil
NET WORTH		800000

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VALUATION REPORT

Name of the Reported Owner	Mrs. P. Shailaja W/o Mr. P. V. Narasimha Rao
Purpose	To estimate the present market value purpose of loan
Nature of the property	Land and Shed
Loan in Favour of	Scope Industries
Location	Plot No.304/16, Pathrika Nagar, Sy. No.80 to 84, Madhapur Village, Serilingampally Mandal, Ranga Reddy District.
Extent of Land	287.5 Sq. yds
Approved Built up area	--
Built up as per construction	1500 sft. ACC House
LRS Approval details	Lr. No.LRS/42/G/CXI/Z/TPS/HO/GHMC/2008 42 Date 06.06.2008 issued commissioner and SPL Officer, [Town Planning Section (HO)] GHMC, Tankbund, Hyderabad
Present / Expecting rental Income per month	Rs.8,000 per Month
- Present Market Value	Rs.16.675 Millions
- Distress Value of the Property	Rs.13.340 Millions
- Government Rate	Rs.3.738 Millions

Date of Inspection	16 March, 2012
Date of Valuation is made	17 March, 2012
Brief Description of the property	In this Plot ACC shed constructed, but there is no permission so they are not taking in valuation. This site 1 km distance Madhapur Main Road. This area us quite developed with Accenture, Raheja’s 100 acre Venture and Inorbit Mall Nearby, all of prime importance in value.
Location of the property (As per sale Deed)
- Plot No.	16
- Sy. Nos.	80,81,82,83 and 84
- Village and Grampanchayat	Madhapur
- Mandal	Serilingampalk
- District	Ranga Reddy
Classification of area
- Residential/ Commercial/ Industrial	Residential
- High/ Middle/ Poor Class	Middle Class
- Urban/ Semi Urban/ Rural	Urban
Coming under Corporation Limit/ Village Panchayat/ Municipality	Corporation Limit
Boundaries of the property
- North	25” wide Road
- South	Plot No.19
- East	Plot No.15
- West	25” Wide Road
Extent of the Site	--
Extent of the site Considered for valuation	287.5 sq. yds.
CHARACTERISTICS OF THE SITE
Classification of Locality	Upper Middle Class
Development of surrounding area	Developed
Feasibility to the civic amenities like School, Hospital, Bus Stop, Market etc.	0.500 m distance
Shape of Land	Rectangular
Type of use to which it can be put	Fully Commercial
Any usage restriction	No
Corner plot or intermittent plot?	Intermittent
Road facilities	Available
Type of road available at present	Cement Road
Width of road is it below 20 ft or more than 20 ft	Below 20 ft
Is it land locked land	--
Water Potentiality	Municipal Water
Under Ground Sewerage systems	--
PART – A (VALUATION OF LAND)
Total Extent of the Plot	287.5 sq. yds.
Prevailing Market rate Card value	Rs.13,000 per sq. yd.
Market Rate	Rs.55,000 to 65,000 per sq. yd.
Assessed / adopted rate of valuation	Rs.58,000 per sq. yd.
Estimate value of land	Rs.16.675 Millions
TECHNICAL DETAILS OF BUILDING
Type of building Residential/ Commercial/ Industrial	ACC House Permission not there, so not taken in calculation
Type of Construction Load Bearing/ RCC/ Steel Framed	RCC

VALUE

Part A: Land	Rs.16.675 Millions
Part B: Civil Work	Nil
Part C: Extra	Nil
Total	Rs.16.675 Millions
A] Fair Market Value of the Property	Rs.16.675 Millions
B] Distress Value of the Property	Rs.13.340 Millions
C] Government Rate	Rs.3.738 Millions

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VALUATION REPORT

Name of the Reported Owner	Mr. P. V. Narasimha Rao S/o Late Mr. P. Krishna Murthy
Purpose	To estimate the present market value purpose of loan
Nature of the property	Villa
Loan in Favour of	Mr. P. V. Narasimha Rao S/o Late Mr. P. Krishna Murthy
Location	Villa No.329, Sy. No.1009, Indu Fortune Fields, Phase-XIII, KPHB, Balanagar Mandal, Ranga Reddy District.
Extent of Land	325 Sq. yds out of 65 Acres land
Approved Built up area	--
Built up as per construction	2940 sft.
Approved Permission Plan details	Building Permit No.BA/G2/442/B4/1768 Date 25.09.2006 commissioner, Kukatpally Municipality and Vice Chairmn HUDA.
Present / Expecting rental Income per month	Rs.35,000 per Month (Doctor’s family is staying)
- Present Market Value	Rs.28.300 Millions
- Distress Value of the Property	Rs.24.055 Millions
- Government Rate	Rs.6.817 Millions

Date of Inspection	25.02.2012
Date of Valuation is made	26.02.2012
Brief Description of the property	--
Location of the property (As per sale Deed)
- Villa No.	329
- Sy. Nos.	1009
- Location	Indu Fortune Fields
- Area Name	Phase-XIII, KPHB
- Mandal	Balanagar
- District	Ranga Reddy
Classification of area
- Residential/ Commercial/ Industrial	Residential
- High/ Middle/ Poor Class	Uppar Class
- Urban/ Semi Urban/ Rural	Urban
Coming under Corporation Limit/ Village Panchayat/ Municipality	Corporation Limit
Boundaries of the property	Total Land
- North	APHB Land Phase XIII Part
- South	Water Supply Line
- East	By Road
- West	By Private Land
Boundaries of the property	Villa No.329
- North	Villa No.328
- South	Villa No.330
- East	Villa No.308
- West	Road
Extent of the Site	325 sq. yds.
Extent of the site Considered for valuation	325 sq. yds.
CHARACTERISTICS OF THE SITE
Classification of Locality	Upper Class
Development of surrounding area	Developed
Feasibility to the civic amenities like School, Hospital, Bus Stop, Market etc.	1 km distance
Shape of Land	Rectangular
Type of use to which it can be put	Residential Land
Any usage restriction	No
Corner plot or intermittent plot?	Intermittent
Road facilities	Available
Type of road available at present	Cement Road
Width of road is it below 20 ft or more than 20 ft	Below 20 ft
Is it land locked land	No
Water Potentiality	Municipal Water
Under Ground Sewerage systems	Arranged
PART – A (VALUATION OF LAND)
Total Extent of the Plot	325 sq. yds.
Prevailing Market rate Card value	Rs.20,975 per sq. yd.
Market Rate	Rs.60,000 to 65,000 per sq. yd.
Assessed / adopted rate of valuation	Rs.60,000 per sq. yd.
Estimate value of land	Rs.19.500 Millions
TECHNICAL DETAILS OF BUILDING
Type of building Residential/ Commercial/ Industrial	Residential
Type of Construction Load Bearing/ RCC/ Steel Framed	RCC
Year of Construction	2008
Age of the Building	3 years
Total Life of the Building	70 years
Residential Life of the building	67 years
Number of Floors and bright of each Floor including basement, if any	Ground Floor + First Floor (Duplex House)
Approved built up floor area	2940 sft
Condition of the Building	Good

S. No	Particulars of Items	Built up Area	Roof Ht.	Age of Building	Estimated replacement of Construction	Replacement of Cost	Net Value after depreciation Rs. In Millions
1	Villa	2940 sft.	10’	3 years	Rs.3000 per sft.	8.820	8.820
Total							8.820

VALUE

Part A: Land	Rs.19.500 Millions
Part B: Civil Work	Rs.8.820 Millions
Part C: Extra	Nil
Total	Rs.28.320 Millions
A] Fair Market Value of the Property	Rs. 28.300 Millions
B] Distress Value of the Property	Rs.24.055 Millions
C] Government Rate	Rs.6.817 Millions

INTERNET ADVT. OF SIMILAR VILLA IN THE SAME LOCATION BY SAME BUILDER

4 BHK Villa for sale in KPHB Colony

Price Rs.25.500 Millions

Price/ Sq-ft Rs.8,800

Indu Fortune Field, KPHB colony

Bedroom: 4

Bathroom: 4

Balconies: 4

Covered Area: 2900 sq-ft.

Plot area 280 sq-yd.

Indu fortune fields beautiful gated community 2km from hi-tech city cyber tower, with swimming pool, club house, gym, restaurant, power pack up, Piped gas, gardens etc. 4 bedroom west Facing Duplex Villa with modular kitchen, wardrobes in all bedrooms, false ceiling high quality and beautiful interiors, price fixed.

About the villa in the advt.

Working Back

They talked to the builder about the cost break-up and he told like this:

Rate/Sq.yd = Rs.60,000 x 280 sq. yd. = Rs.16.800 Millions

Rate/Sq.ft = Rs.3,000 x 2900 sq. ft. = Rs.8.700 Millions

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Total = Rs.25.500 Millions

Regarding the instant villa under consideration,

Working

Applying the same cost break- up

Rate/Sq.yd = Rs.60,000 x 325 sq. yd. = Rs.19.500 Millions

Rate/Sq.ft = Rs.3,000 x 2940 sq. ft. = Rs.8.820 Millions

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

Total = Rs.28.320 Millions

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(AS ON 31.03.2011)

FINANCIAL RESULTS

The Company has entered into new line of business i.e construction business, during the financial year; the Company has achieved a turnover of Rs.152.159 Millions and Rs.2.252 Millions as Net profit. The Board visualized good future in the new line of business in the Coming years.

MANAGEMENT DISCUSSION & ANALYSIS:

INDUSTRY STRUCTURE AND DEVELOPMENTS

Infrastructure development and maintenance is a major input to economic development and sustained growth in an economy. As India continues down its path of development, infrastructure is no less important. Although the Indian government has been proactive in building necessary infrastructure in the energy, transportation, and urban sectors, additional investment is needed. Like many countries, private-sector involvement will be critical in escalating India’s infrastructure beyond meeting basic needs and reaching an level that advances the efficiency with which India’s economy operates. This paper considers the current and future role of public private partnerships (PPP) for infrastructure-related development in India. Additionally, this paper examines in detail the current state and future plans for India’s infrastructure in the transportation, energy, and urban sectors. Interlaced with these plans are IHS Global Insight’s own projections for construction in each of these major infrastructure sectors The Indian economy has shown remarkable resilience and smart recovery. It recorded a growth rate of over 8%, making it the world’s second-fastest growing major economy after China. But inflation and volatility in commodity prices continue to remain a concern.

India purports its economic development strategy, in part, through its Five-Year Plans. The Five-Year Plan is a reflection of the economic philosophy and thinking set after the country’s independence in 1947. This thinking recognizes a role of government in bringing about the changes in various fields of the economy to improve the standard of living and overall wellbeing of the society. The Five-Year Plans are designed, executed, and monitored by a central agency the Planning Commission. The prime minister of India serves as the chairman of the commission. The country’s first Five-Year Plan was from 1951-56. Currently, the 11th Five Year Plan is on its way to setting forth the strategy from 2007-12.

INDUSTRY OUTLOOK:

The Indian construction industry is highly fragmented. This is partially due to the fact that, for most projects, there are no long-term relationships between the contractors and clients. For example, government agencies such as the National Highway Authority of India (NHAI) do not provide any benefits to the long-term contractors that have worked with them in the past. Because the sector lacks economies of scale, smaller players may have better cost structures due to lower overhead costs. The industry can be broadly classified into two segments —

Organized and unorganized: The organized segment consists of firms and independent contractors who manage their business (design, financing, execution, etc.) on a professional basis. The organized segment operates on small, medium, and large scales.

The unorganized segment primarily consists of standalone contractors that operate at a small scale. Construction activities of smaller firms in the organized segment and contractors in the unorganized segment are mainly focused on simple construction projects-building houses for individuals, repair, and maintenance for smaller buildings. Construction activities for larger firms involve complex logistics management of men, machinery, and materials.

FUTURE OUTLOOK

The Company has entered into the new segment of business related to infrastructure and construction and the performance of the Company was satisfactory for the FY 2010-2011.

BACKGROUND:

Scope Industries (India) Limited, formerly known as Jain Marble Udhyog Limited, a Company incorporated and domiciled in India on 19-11-1983 with its Registered Office at No. 8-2-293/82/L/A, Flat No. 101, Raj Residency, Plot No. 280A, Road No. 12, Banjara Hills, Hyderabad – 500 034. The Equity Shares of the Company are publicly traded in India on the Bombay Stock Exchange. The Financial Statements are the responsibility of the Management.

Scope Industries (India) Limited has commenced its business of Infrastructure Development and Real Estate Activities during the current financial year. During the Current Financial Year, the Company has executed Six Laning of part of Panipat-Jalandhar Section of National High Way Road Project and other related facilities adjoining it on sub-contract basis.

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TRADE REFERENCE:

· Sirco Projects private limited

· Naftogaz India private limited

· KRR Infra Projects private limited

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.55.73
UK Pound	1	Rs.87.26
Euro	1	Rs.69.89

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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.