MIRA INFORM REPORT

Report Date :

18.08.2014

IDENTIFICATION DETAILS

Name :	CHANDRESH METAL
Registered Office :	173, G.V.M.M. Estate, Odhav, Ahmedabad – 382415, Gujarat
Country :	India
Date of Establishment :	23.07.2013
Capital Investment / Paid-up Capital :	Not Divulged
PAN No.: [Permanent Account No.]	AAIFC9028N
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturer of Cold Rolled Stainless Steel.
No. of Employees :	28 (25 in Factory and 3 in Office) (Approximately)

RATING & COMMENTS

MIRA’s Rating :

NB

RATING		STATUS	PROPOSED CREDIT LINE
-	NB	New Business	-

Status :	New Concern
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is a new partnership concern. Mr. Mahendra G. Rajput, Partner has provided us with general information and he also confirmed that the concern with start its business activity from 1^st September, 2014. Payment terms are unknown. The concern can be considered for business dealings on a safe and secured trade terms and conditions.

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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Mahendrasingh Rajput
Designation :	Partner
Contact No.:	91-9376145991
Date :	11.08.2014

LOCATIONS

Registered Office/ Factory :	173, G.V.M.M. Estate, Odhav, Ahmedabad – 382415, Gujarat, India
Tel. No.:	91-79-22900680
Mobile No.:	91-9376145991 [Mr. Mahendrasingh Rajput]
Fax No.:	Not Available
Area :	4500 Sq. ft.
Location :	Owned

PARTNERS

Name :	Mr. Chandrapal Jabbarsingh Parmar
Designation :	Partner
Address :	155, Harbholenath Park, NH 8, Odhav, Ahmedabad, Gujarat, India
Date of Birth/Age :	20 Years
Qualification :	Metallurgy Engineering
PAN No.:	CHTPP0497G
Name :	Mr. Mahendrasingh Gajesingh Rajput
Designation :	Partner
Address :	39, Royal Bunglows, New Naroda, Ahmedabad, Gujarat, India
Date of Birth/Age :	19.12.1993
Qualification :	B. Com
Experience :	3 Years
PAN No.:	BFWPR5148L

BUSINESS DETAILS

Line of Business :	Manufacturer of Cold Rolled Stainless Steel.
Terms :
Selling :	Credit [45 Days]
Purchasing :	Credit [30 Days]

GENERAL INFORMATION

Customers :	Others
No. of Employees :	28 (25 in Factory and 3 in Office) (Approximately)
Bankers :	· Bank of Baroda Kathwada Branch, Ahmedabad, Gujarat, India

Banking Relations :	--
Auditors :
Name :	Atul Dalal and Company Chartered Accountants
Address :	Abhishek, 2^nd Floor, C G Road, Ahmedabad – 380006, Gujarat, India
Tel. No.:	91-79-26469499
Mobile No.:	91-9427617168
Fax No.:	91-79-26449933
E-Mail :	adalal01@yahoo.com

CAPITAL STRUCTURE

Capital Investment :
Owned :	Not Divulged
Borrowed :	Not Divulged
Total :	Not Divulged

FINANCIAL DATA

[all figures are in Rupees Millions]

NEW BUSINESS

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	No
12]	Profitability for last three years	No
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	No
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	No
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	No
28]	Incorporation details, if applicable	No
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

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

COST OF PROJECT

PARTICULARS	Rs. in Millions
A. Plant and Machinery	6.870
B. Gas Connection Charges	0.305
C. Electric Installation	0.350
D. Contingencies	0.190
E. Margin Money for W/C	3.020
TOTAL	10.735

MEANS OF FINANCE

PARTICULARS	Rs. in Millions
A. Capital Partner’s Capital	5.285
B. Unsecured Loan Term Loan-I	5.450
TOTAL	10.735

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

REVENUE CALCULATIONS

(RS. IN MILLIONS)

PARTICULARS	Units	2014-15	2015-16	2016-17	2017-18	2018-19	2019-20	2020-21
A. PRODUCTION CAPACITY	MT Per Day
S.S. Patta	8.00	8	8	8	8	8	8	8
B. No. of Working Days		180	300	300	300	300	300	300
C. No. of Working Hours		10	10	10	10	10	10	10
D. Utilisation %		60%	65%	70%	70%	75%	75%	75%
E. Production Per Year S.S. Patta		864	1560	1680	1680	1800	1800	1800
TOTAL PRODUCTION		864	1560	1680	1680	1800	1800	1800
MATERIAL REQUIREMENT	RATE / KG
S.S. Flat	Rs. 72	65.320	117.940	127.010	127.010	136.080	136.080	136.080
RAW MATERIAL REQ. PER YEAR		65.320	117.940	127.010	127.010	136.080	136.080	136.080
FINISHED GOODS PRODUCTION	RATE / KG
S.S. Patta	Rs. 95	82.080	148.200	159.600	159.600	171.000	171.000	171.000
TOTAL PRODUCTION PER ANNUM		82.080	148.200	159.600	159.600	171.000	171.000	171.000
Increase/ Decrease in Stock		1.800	0.000	0.100	0.000	0.000	0.000	0.000
		80.280	148.200	159.500	159.600	171.000	171.000	171.000

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

MARGIN MONEY CALCULATIONS

(RS. IN MILLIONS)

PARTICULARS	No. of months	2014-15	2015-16	2016-17	2017-18	2018-19	2019-20	2020-21
A. CURRENT ASSETS
1. Inventories
Raw Material	0.25	2.600	2.600	2.600	2.600	2.800	2.800	2.800
Finished Stock	0.00	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Process Stock	0.15	1.800	1.800	1.900	1.900	1.900	1.900	1.900
Stores and Spares	0.00	0.000	0.000	0.000	0.000	0.000	0.000	0.000
2. Book Debts	1.75	20.100	21.600	23.300	23.300	24.900	24.900	24.900
3. Loans and Advances	--	0.575	0.575	0.575	0.575	0.575	0.575	0.575
4. Normal Cash and Bank	--	0.100	0.100	0.100	0.100	0.100	0.100	0.100
Total Current ASSETS		25.175	26.675	28.475	28.475	30.275	30.275	30.275
B. CURRENT LIABILITIES
1. Creditors for Goods	1.25	13.000	13.200	13.200	13.200	13.200	13.200	13.200
2. Creditors for Exps	0.00	0.100	0.200	0.200	0.200	0.200	0.200	0.200
TOTAL CURRENT LIABILITIES		13.100	13.400	13.400	13.400	13.400	13.400	13.400
C. Working Capital Gap		12.075	13.275	15.075	15.075	16.875	16.875	16.875
D. Bank Finance Available		9.600	10.000	10.000	10.000	10.000	10.000	10.000
E. Margin Money for Working Capital		3.020	3.320	3.770	3.770	4.220	4.220	4.220

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

CASH FLOW STATEMENT

(RS. IN MILLIONS)

	PARTICULARS	2014-15	2015-16	2016-17	2017-18	2018-19	2019-20	2020-21
A	Cash Accrual	0.860	1.778	2.670	2.506	3.764	3.767	3.849
B	Increase in Capital	5.285	0.000	0.000	0.000	0.000	0.000	0.000
C	Increase In Term Loan-I	5.450	0.000	0.000	0.000	0.000	0.000	0.000
D	Decrease In Investment	0.000	0.000	0.000	0.000	0.000	0.000	0.000
E	Increase in Working Capital	7.500	2.500	0.000	0.000	0.000	0.000	0.000
F	Decrease In Investment	0.000	0.000	0.000	0.000	0.000	0.000	0.000
G	Increase Unsecured Loan	1.500	0.000	0.000	0.000	0.000	0.000	0.000
H	Decrease in Intangible Assets	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	TOTAL IN FLOW	20.595	4.278	2.670	2.506	3.764	3.767	3.849
	CASH OUT FLOW
A	Addition to Fixed Assets	7.715	0.000	0.000	0.000	0.000	0.000	0.000
B	Increase in Net Current Assets	11.975	1.200	1.800	0.000	1.800	0.000	0.000
C	Decrease in Term Loan-I	0.303	0.908	0.908	0.909	0.908	0.908	0.606
D	Decrease in Working Capital	0.000	0.000	0.000	0.000	0.000	0.000	0.000
E	Increase in Investment	0.000	0.000	0.000	0.000	0.000	0.000	0.000
F	Provision for Tax	0.080	0.210	0.530	0.520	0.930	0.960	1.010
G	Dividend	0.000	0.000	0.000	0.000	0.000	0.000	0.000
H	Share Issue Expenses	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	TOTAL OUT FLOW	20.073	2.318	3.238	1.429	3.638	1.868	1.616
	Opening Cash and Bank Balance	0.000	0.522	2.482	1.414	1.991	1.617	3.516
	Excess/ Shortage in Cash	0.522	1.960	(0.568)	1.077	0.126	1.899	2.233
	Closing Cash and Bank Balance	5.220	2.482	1.914	2.491	2.117	3.516	5.749
		0.00	0.00	5.00	5.00	5.00	0.00	0.00

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

TAX CALCULATIONS

(RS. IN MILLIONS)

	PARTICULARS	2014-15	2015-16	2016-17	2017-18	2018-19	2019-20	2020-21
A	Profit before tax	0.280	0.708	1.760	1.736	3.104	3.207	3.379
B	Add: Depreciation	0.580	1.070	0.910	0.770	0.660	0.560	0.470
C	Less: Depreciation as per Income Tax	0.580	1.070	0.910	0.770	0.660	0.560	0.470
D	Gross Taxable Income	0.280	0.708	1.760	1.736	3.104	3.207	3.379
E	Less: Carried Forward Loss of Prior Year	0.000	0.000	0.000	0.000	0.000	0.000	0.000
F	Net Taxable Income	0.280	0.708	1.760	1.736	3.104	3.207	3.379
G	Incentive u/s 80HHC Income Tax	0.000	0.000	0.000	0.000	0.000	0.000	0.000
H	Incentive u/s 80 [I-A] Income Tax	0.000	0.000	0.000	0.000	0.000	0.000	0.000
I	Provision for Tax @ 30%	0.080	0.210	0.530	0.520	0.930	0.960	1.010
J	Carried forward loss for the year	0.000	0.000	0.000	0.000	0.000	0.000	0.000

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D S C R CALCULATIONS

(RS. IN MILLIONS)

PARTICULARS	2014-15	2015-16	2016-17	2017-18	2018-19	2019-20	2020-21
Profit after tax	0.200	0.498	1.230	1.216	2.174	2.247	2.369
Depreciation	0.580	1.070	0.910	0.770	0.660	0.560	0.470
Interest on Term Loan	0.572	0.695	0.533	0.287	0.209	0.106	0.024
SUB TOTAL	1.352	2.263	2.673	2.273	3.043	2.913	2.863
Interest on Term Loan	0.572	0.695	0.533	0.287	0.209	0.106	0.024
Repayment of Term Loan	0.303	0.908	0.908	0.909	0.908	0.908	0.606
SUB TOTAL	0.875	1.603	1.441	1.196	1.117	1.014	0.630
D S C R	1.55	1.41	1.85	1.90	2.72	2.87	4.54
AVG. D S C R	2.21

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BREAK EVEN CALCULATIONS

(RS. IN MILLIONS)

	PARTICULARS		2014-15	2015-16	2016-17	2017-18	2018-19
	SALES		82.180	148.350	159.750	159.750	171.150
	VARIABLE COST
A	Raw Material	--	65.320	117.940	127.010	127.010	136.080
B	Salaries and Wages	70.00%	0.980	1.680	1.848	2.030	2.233
C	Power and Fuel	--	7.348	12.407	12.577	12.577	12.737
D	Repairs and Maintenance	80.00%	0.480	0.960	1.056	1.056	1.056
E	Stores and Spares	--	0.200	1.000	1.200	1.300	1.400
F	Excise Duty	--	0.750	1.500	1.500	1.500	1.500
G	Working Capital	--	0.510	1.180	1.350	1.350	1.350
	TOTAL VARIABLE COST		75.588	136.667	146.541	146.823	156.356
	CONTRIBUTION		6.592	11.684	13.210	12.928	14.795
	FIXED COST
	Salaries and Wages	30.00%	0.420	0.720	0.792	0.870	0.957
	Repairs and Maintenance	20.00%	0.120	0.240	0.264	0.264	0.264
	Interest – Term Loan	--	0.482	0.515	0.413	0.227	0.209
	Depreciation	--	0.580	1.070	0.910	0.770	0.660
	TOTAL FIXED COST		1.602	2.545	2.379	2.131	2.090
	CASH ACCRUAL		4.990	9.139	10.831	10.797	12.705
	BREAK EVEN SALES		20.000	32.300	28.800	26.300	24.200
			24.34%	21.77%	18.03%	16.46%	14.14%
	CASH BREAK EVEN SALES		12.700	18.700	17.800	16.800	16.500
			15.45%	12.61%	11.14%	10.52%	9.64%

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ASSESMENT OF WORKING CAPITAL REQUIREMENTS

OPERATING STATEMENT

(RS. IN MILLIONS)

		PARTICULARS	March 15 Actuals	March 16 Actuals	March 17 Estimates	March 19 Projected	March 19 Projected	March 20 Projected	March 21 Projected
1		GROSS SALES
	a	Domestic Sales	80.280	148.200	159.500	159.600	171.000	171.000	171.000
	b	Export Sales	0.000	0.000	0.000	0.000	0.000	0.000	0.000
		Total	80.280	148.200	159.500	159.600	171.000	171.000	171.000
2		Less: Excise Duty	0.000	0.000	0.000	0.000	0.000	0.000	0.000
3		NET SALES	80.280	148.200	159.500	159.600	171.000	171.000	171.000
4		%age rise or fall in net sales as compared to previous year	0.00%	84.60%	7.62%	0.06%	7.14%	0.00%	0.00%
5		COST OF SALES
	i	Raw Material [Including Stores and Other Items used in Process of Mfg.]
		Imported	0.000	0.000	0.000	0.000	0.000	0.000	0.000
		Indigenous	65.320	117.940	127.010	127.010	136.080	136.080	136.080
	ii	Other Spares
		Imported	0.000	0.000	0.000	0.000	0.000	0.000	0.000
		Indigenous	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	iii	Power and Fuel	7.348	12.407	12.577	12.577	12.737	12.737	12.737
	iv	Direct Labour	1.400	2.400	2.640	2.900	3.190	3.190	3.190
	v	Repair and Maintenance	0.600	1.200	1.320	1.320	1.320	1.320	1.320
	vi	Other Manufacturing Expenses	4.520	8.800	9.600	9.700	10.400	10.500	10.500
	vii	Depreciation	0.580	1.070	0.910	0.770	0.660	0.560	0.470
	viii	Sub-Total	79.768	143.817	154.057	154.277	164.387	164.387	164.297
	ix	Add: Opening stock - WIP	0.000	1.800	1.800	1.900	1.900	1.900	1.900
		Sub-total	79.768	145.617	155.857	156.177	166.287	166.287	166.197
	x	Less: Closing Stock - WIP	1.800	1.800	1.900	1.900	1.900	1.900	1.900
	xi	Cost of Production	77.968	143.817	153.957	154.277	164.387	164.387	164.297
	xii	Add: Opening stock – Finished Goods	0.000	0.000	0.000	0.000	0.000	0.000	0.000
		Sub-total	77.968	143.817	153.957	154.277	164.387	164.387	164.297
	xiii	Less: Closing Stock – Finished Goods	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	xiv	Sub-total [Cost of Sales]	77.968	143.817	153.957	154.277	164.387	164.387	164.297
6		Selling, General & Administrative Expenses	1.050	1.950	2.050	2.100	2.100	2.100	2.100
7		Sub-total	79.018	145.767	156.007	156.377	166.487	166.487	166.397
8		Operating Profit before interest	1.262	2.433	3.493	3.223	4.514	4.514	4.603
9		Interest	1.082	1.875	1.883	1.637	1.559	1.456	1.374
10		Operating Profit after interest	0.180	0.558	1.610	1.586	2.955	3.058	3.229
11	a	Add: Other Income	0.100	0.150	0.150	0.150	0.150	0.150	0.150
	b	Deduct other non-operating expense
		Pre. and Diff Rev. Exp	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	c	(iii) Net of other non-operating incomes/ expenses	0.100	0.150	0.150	0.150	0.150	0.150	0.150
12		Profit before tax/loss (7+8(iii))	0.280	0.708	1.760	1.736	3.105	3.208	3.379
13		Provision for tax	0.080	0.210	0.530	0.520	0.930	0.960	1.010
14		Net Profit / (Loss)	0.200	0.498	1.230	1.216	2.175	2.248	2.369
15	a	Equity dividend	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	b	Dividend Rate
16		Retained Profit	0.200	0.498	1.230	1.216	2.175	2.248	2.369
17		Retained Profit / Net Profit (%)	100%	100%	100%	100%	100%	100%	100%

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

ANALYSIS OF BALANCE SHEET

(RS. IN MILLIONS)

Sr. No	PARTICULARS	March 15 Actuals	March 16 Actuals	March 17 Estimates	March 19 Projected	March 19 Projected	March 20 Projected	March 21 Projected
	CURRENT LIABILITIES
1	Short term borrowings from bank (incl. Bills purchased, discounted & excess borrowings placed on repayment basis)
	(i) From Application Bank	7.500	10.000	10.000	10.000	10.000	10.000	10.000
	(ii) From Other Banks	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	(iii) of which EP & BD
	Sub Total (A)	7.500	10.000	10.000	10.000	10.000	10.000	10.000
2	Short term borrowings from others	0.000	0.000	0.000	0.000	0.000	0.000	0.000
3	Sundry Creditors - Trade	13.100	13.400	13.400	13.400	13.400	13.400	13.400
4	Advance payments from customers/deposits from dealers	0.000	0.000	0.000	0.000	0.000	0.000	0.000
5	Provision for Taxation	0.000	0.000	0.000	0.000	0.000	0.000	0.000
6	Dividend Payable	0.000	0.000	0.000	0.000	0.000	0.000	0.000
7	Other statutory liabilities (due within one year)	0.000	0.000	0.000	0.000	0.000	0.000	0.000
8	Deposits/Instalments of term loan/ DPGs/ Debentures etc. (due within one year)	0.908	0.908	0.908	0.908	0.908	0.908	0.908
9	Other current liabilities & Provisions (due within one year)	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	Sub Total (B)	14.008	14.308	14.308	14.308	14.308	14.308	14.308
10	TOTAL CURRENT LIABILITIES [TOTAL of 1 to 9]	21.508	24.308	24.308	24.308	24.308	24.308	24.308
	TERM LIABILITIES
11	Debentures (not maturing within one year)	0.000	0.000	0.000	0.000	0.000	0.000	0.000
12	Preference Shares (redeemable after one year)	0.000	0.000	0.000	0.000	0.000	0.000	0.000
13	Term loans (excluding instalments payable within one year)	4.239	3.331	2.422	1.514	0.606	0.606	0.606
14	Deferred Payment Credits (excl. instalments due within one year)	0.000	0.000	0.000	0.000	0.000	0.000	0.000
15	Term deposits (repayable after one year)	0.000	0.000	0.000	0.000	0.000	0.000	0.000
16	Other term liabilities	1.500	1.500	1.500	1.500	1.500	1.500	1.500
17	Total term liabilities (Total of 11 to 16)	5.739	4.831	3.922	3.014	2.106	2.106	2.106
18	Total Outside Liabilities [10+17]	27.247	29.139	28.230	27.322	26.414	26.414	26.414
	NET WORTH
19	Ordinary Share Capital	5.285	5.285	5.285	5.285	5.285	5.285	5.285
20	General Reserve	0.000	0.000	0.000	0.000	0.000	0.000	0.000
21	Revaluation Reserve	0.000	0.000	0.000	0.000	0.000	0.000	0.000
22	Other reserves (excluding provisions)	0.000	0.000	0.000	0.000	0.000	0.000	0.000
23	Surplus (+) or deficit (-) in Profit & Loss Account	0.200	0.699	1.929	3.146	5.320	7.568	9.937
24	Net worth	5.485	5.984	7.214	8.431	10.605	12.853	15.222
25	TOTAL LIABILITIES [18+24]	32.732	35.123	35.444	35.753	37.019	39.267	41.636
	CURRENT ASSETS
26	Cash & Bank balances	0.522	2.483	1.914	2.993	3.119	5.927	8.766
27	Investments [Other than Long term Investment e.g. Sinking Funds, Gratuity Funds etc.]
	i. Government and Other Trustee Securities	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	ii. Fixed Deposits with Banks	--	0.000	0.000	0.000	0.000	0.000	0.000
28	i. Receivables other than Deferred and Export receivables [Including Bill, purchase and discounted by Bankers]	20.100	21.600	23.300	23.300	24.900	24.900	24.900
	ii. Export receivables [Including Bill purchased and Discounted by Bankers]	0.000	0.000	0.000	0.000	0.000	0.000	0.000
29	Instalments of Deferred receivables [Due within one year]	0.000	0.000	0.000	0.000	0.000	0.000	0.000
30	Inventory
	(i) Raw materials (including stores and other items used in the process of manufacture)
	(a) Imported	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	(b) Indigenous	2.600	2.600	2.600	2.600	2.800	2.800	2.800
	(ii) Stock-in-process	1.800	1.800	1.900	1.900	1.900	1.900	1.900
	(iii) Finished Goods	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	(iv) Other consumable stores	0.000	0.000	0.000	0.000	0.000	0.000	0.000
31	A. Advance to suppliers of Raw materials & stores/spares consumables	0.200	0.200	0.200	0.200	0.200	0.200	0.200
	B. Advance for Capital Goods	0.000	0.000	0.000	0.000	0.000	0.000	0.000
32	Advance payment of taxes	0.000	0.000	0.000	0.000	0.000	0.000	0.000
33	Other current assets [Major items to be specified individually]	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	A. Loans and Advances and Others	0.000	0.000	0.000	0.000	0.000	0.000	0.000
34	TOTAL CURRENT ASSET [Total 26 to 33]	25.200	28.683	29.914	30.993	32.919	35.727	38.566
	FIXED ASSETS
35	Gross Block (land & building, machinery, Construction in progress etc.)	7.715	7.715	7.715	7.715	7.715	7.715	7.715
36	Depreciation to date	0.580	1.650	2.560	3.330	3.990	4.550	5.020
37	Net Block (35-36)	7.135	6.065	5.155	4.385	3.725	3.165	2.695
	OTHER NON-CURRENT ASSETS
38	Investments/book debts /advances deposits which are not current assets
	i.(a) Investments in subsidiary companies/ affiliates	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	(b) Others	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	ii. Advances to suppliers of capital goods, Spares & contractors	0.375	0.375	0.375	0.375	0.375	0.375	0.375
	iii. Deferred receivables (other than those maturing within one year)	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	iv. Others	0.000	0.000	0.000	0.000	0.000	0.000	0.000
39	Non consumables stores & spare	0.000	0.000	0.000	0.000	0.000	0.000	0.000
40	Other Miscellaneous assets including dues from Directors	0.000	0.000	0.000	0.000	0.000	0.000	0.000
41	TOTAL OTHER NON-CURRENT ASSETS (Total of 38 to 40)	0.375	0.375	0.375	0.375	0.375	0.375	0.375
42	Intangible assets (patents, goodwill, prelim, expenses, bad/ doubtful debts not provided for etc.)	0.000	0.000	0.000	0.000	0.000	0.000	0.000
43	TOTAL ASSETS (Total of 34,37,41 & 42)	32.732	35.123	35.444	35.753	37.019	39.267	41.636
44	Tangible net worth (24-42)	5.485	5.984	7.214	8.431	10.605	12.853	15.222
45	Net working Capital [(17+24)-(37+41+42)] Totally with (34-10)	3.714	4.375	5.606	6.685	8.611	11.419	14.258
46	Current Ratio [34/10]	1.17	1.18	1.23	1.28	1.35	1.47	1.59
47	Total outside liabilities / Tangible Net worth (18/44)	4.97	4.87	3.91	3.24	2.49	2.06	1.74
	Quasi
	ADDITIONAL INFORMATION
	A. Arrears of depreciation
	B. Contingent Liabilities:
	(a)Arrears of cumulative dividends	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	(b)Gratuity liability not provided for	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	(c)Disputed excise/ customs/tax liabilities	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	(d)Other liabilities not provided for	0.000	0.000	0.000	0.000	0.000	0.000	0.000

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

COMPARATIVE STATEMENT OF CURRENT ASSETS & CURRENT LIABILITIES

(RS. IN MILLIONS)

Sr. No.	PARTICULARS	March 15 Actuals	March 16 Actuals	March 17 Estimates	March 19 Projected	March 19 Projected	March 20 Projected	March 21 Projected
	A. CURRENT ASSETS:
1	Raw material [Including Stores and other items used in the process of manufacturing]
	A. Imported	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	[Months Consumption]	--	--	--	--	--	--	--
	B. Indigenous	2.600	2.600	2.600	2.600	2.800	2.800	2.800
	[Months Consumption]	--	--	--	--	--	--	--
2	Other Consumable Stores excluding those under item [1] above
	A. Imported	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	[Months Consumption]	--	--	--	--	--	--	--
	B. Indigenous	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	[Months Consumption]	--	--	--	--	--	--	--
3	Stock in process	1.800	1.800	1.900	1.900	1.900	1.900	1.900
	Months cost of production	0.28	0.15	0.15	0.15	0.14	0.14	0.14
4	Finished Goods	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	Months cost of production	--	--	--	--	--	--	--
5	Receivables other than export and deferred receivables [Including Bills purchased and discounts by Bankers]	20.100	21.600	23.300	23.300	24.900	24.900	24.900
	[Months Domestic Sales excluding deferred payment sales]	3.00	1.75	1.75	1.75	1.75	1.75	1.75
6	Export receivables [Including Bills Purchased and Discount]	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	[Months Exports Sales]	--	--	--	--	--	--	--
7	Advances to Suppliers of Raw Material and Spare/ Stores Consumable	0.200	0.200	0.200	0.200	0.200	0.200	0.200
8	Other current assets including cash and bank balances and deferred receivables due within one year	0.522	2.483	1.914	2.993	3.119	5.927	8.766
9	TOTAL CURRENT ASSETS (To agree with item 34 in Form III)	25.222	28.683	29.914	30.993	32.919	35.727	38.566
	B. CURRENT LIABILITES
	(Other than bank borrowings for working capital)
1	Creditors for purchase of raw material and stores and cons. Spares	13.100	13.400	13.400	13.400	13.400	13.400	13.400
	[Months Purchases]	2.41	1.36	1.27	1.27	1.18	1.18	1.18
2	Advance from Customers	0.000	0.000	0.000	0.000	0.000	0.000	0.000
3	Statutory Liabilities	0.000	0.000	0.000	0.000	0.000	0.000	0.000
4	Other current liabilities [Short term borrowin, unsecured loans, divi. Payables, instt of TL, DPG, Public Deposits, Deb. etc.]	0.908	0.908	0.908	0.908	0.908	0.908	0.908
	TOTAL CURRENT LIABILITIES (To agree with sub-total B-Form III)	14.008	14.308	14.308	14.308	14.308	14.308	14.308

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

COMPUTATION OF MAXIMUM PERMISSIBLE BANK FINANCE FOR WORKING CAPITAL

(RS. IN MILLIONS)

Sr. No	PARTICULARS	March 15 Actuals	March 16 Actuals	March 17 Estimates	March 19 Projected	March 19 Projected	March 20 Projected	March 21 Projected
1	Total Current Assets (Form IV)	25.222	28.683	29.914	30.993	32.919	35.727	38.566
2	Other Current Liabilities (other than bank borrowings)	14.008	14.308	14.308	14.308	14.308	14.308	14.308
3	Working Capital Gap (WCP) (1-2)	11.214	14.375	15.606	16.685	18.611	21.419	24.258
4	Minimum stipulated net working Capital i.e. 25% of total current assets as the case may be depending upon method of landing	2.804	3.594	3.902	4.171	4.653	5.355	6.065
5	Actual/projected net working capital	3.714	4.375	5.606	6.685	8.611	11.419	14.258
6	Item 3 minus item 4	8.411	10.781	11.705	12.514	13.958	16.064	18.194
7	Item 3 minus item 5	7.500	10.000	10.000	10.000	10.000	10.000	10.000
8	Maximum permissible bank finance (item 6 or 7 whichever is lower)	7.500	10.000	10.000	10.000	10.000	10.000	10.000
9	Excess borrowings, if any representing short fall in NWC	0.000	0.000	0.000	0.000	0.000	0.000	0.000

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

FUNDS FLOW STATEMENT

(RS. IN MILLIONS)

Sr. No.	PARTICULARS	March 15 Actuals	March 16 Actuals	March 17 Estimates	March 19 Projected	March 19 Projected	March 20 Projected	March 21 Projected
1	SOURCES
	[a] Net profit after tax	0.200	0.498	1.230	1.216	2.175	2.248	2.369
	[b] Depreciation	0.580	1.070	0.910	0.770	0.660	0.560	0.470
	[c] Increase in Capital/Sub	5.285	0.000	0.000	0.000	0.000	0.000	0.000
	[d] Increase in Term Liab. including Public deposits	5.379	0.000	0.000	0.000	0.000	0.000	0.000
	[e] Decrease in:
	[i] Fixed Assets	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	[ii] Other non-current Assets	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	[f] Others	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	TOTAL	11.804	1.568	2.140	1.986	2.835	2.808	2.839
2	APPLICATION
	[a] Net Loss	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	[b] Decrease in Term Liab. (Incl. Public deposits)	0.000	0.908	0.909	0.908	0.908	0.000	0.000
	[c] Increase in
	[i] Fixed Assets	7.715	0.000	0.000	0.000	0.000	0.000	0.000
	[ii] Other non-current Assets	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	[d] Dividend Payments	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	[e] Others	0.375	0.000	0.000	0.000	0.000	0.000	0.000
	TOTAL	8.090	0.908	0.909	0.908	0.908	0.000	0.000
3	Long Term Surplus (+) / Deficit (-) (1 - 2)	3.714	0.660	1.231	1.078	1.927	2.808	2.839
4	Increase/ Decrease in current assets***	25.222	3.461	1.231	1.078	1.926	2.808	2.839
5	Increase/ Decrease in current Liabilities other than bank borrowings	14.008	0.300	0.000	0.000	0.000	0.000	0.000
6	Increase/ Decrease in Working Capital Gap	11.214	3.161	2.131	1.078	1.926	2.808	2.839
7	Net Surplus (+) / deficit (-) (Difference of 3 & 6)	(7.500)	(2.501)	0.000	0.000	0.000	0.000	0.000
8	Increase/ Decrease in Bank Borrowings	7.500	2.500	0.000	0.000	0.000	0.000	0.000
	Increase/ Decrease in Net Sales	80.280	67.920	11.300	0.100	11.400	0.000	0.000
	*** BREAK UP OF ITEM 4
	[i] Increase/ Decrease in Raw material	2.600	0.000	0.000	0.000	0.200	0.000	0.000
	[ii] Increase/ Decrease in Stock in process	1.800	0.000	0.100	0.000	0.000	0.000	0.000
	[iii] Increase/ Decrease in finished goods	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	[iv] Increase/ Decrease in Receivables
	[a] Domestic	20.100	1.500	1.700	0.000	1.600	0.000	0.000
	[b] Export	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	[iii] Increase/ Decrease in stores & spares	0.000	0.000	0.000	0.000	0.000	0.000	0.000
	[iii] Increase/ Decrease in other Current Assets	0.722	1.960	(0.569)	1.078	0.126	2.807	2.839
	TOTAL	25.222	3.460	1.231	1.078	1.926	2.807	2.839

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

STATEMENT OF ASSETS AND LIABILITIES

MR. CHANDRAPAL PARMAR

(RS. IN MILLIONS)

DETAILS OF ASSETS

IMMOVABLE PROPERTY

Purchase Price	Rs. 7.600 Millions
Present Market Value	Rs. 20.000 Millions

IMMOVABLE ASSETS

POLICY NO.	SUM INSURED	IN WHOSE NAME	DATE OF POLICY	PREMIUM PAID UPTO	SUR. VALUE PREMIUM PAID
832092286	100000	Self	28.03.1997	28.03.2014	0.037
837730354	1000000	Self	19.01.2011	19.01.2014	0.145
					0.182

INVESTMENT IN BUSINESS

NAME OF COMPANY	DATE	AMOUNT IN MILLIONS
Chandresh Metal	30.06.2014	0.011

TOTAL ASSETS

RS. 20.193 MILLIONS

LEGAL HEIRS

SR. NO.	NAME	RELATION	AGE	RESIDENTIAL ADDRESS
1	Jabarsingh Rajput	Father	50	155, Harebholanath Society, NH8, Odhav, Ahmedabad, Gujarat, India
2	Havikunwar Rajput	Mother	48	155, Harebholanath Society, NH8, Odhav, Ahmedabad, Gujarat, India

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

STATEMENT OF ASSETS AND LIABILITIES

MR. MAHENDRASINGH RAJPUT

(RS. IN MILLIONS)

DETAILS OF ASSETS

IMMOVABLE PROPERTY

INVESTMENT IN BUSINESS

NAME OF COMPANY	DATE	AMOUNT IN MILLIONS
Chandresh Metal	30.06.2014	1.350
Mahalaxmi Steel Industries	31.03.2014	0.007

JEWELLERY

Rs. 0.025 Million

TOTAL ASSETS

RS. 1.375 MILLIONS

LEGAL HEIRS

SR. NO.	NAME	RELATION	AGE	RESIDENTIAL ADDRESS
1	Gajesingh Rajput	Father	45	39, Royal Bunglow, Naroda Road, Ahmedabad, Gujarat, India

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

VALUATION REPORT

PART – I

GENERAL

Purpose for which valuation is made

To ascertain the Present Market Value.

Date as on which valuation is made

July 31, 2014.

Name of the Owner

M/s. Chandrapal Jabbarsinh Parmar

c/o. M/s. Chandresh Metals

If the Property is under joint ownership/ Co-ownership, shares of each such owner.

Ownership

Brief Description of the Property

The property is industrial two storeyed + cabin in the industrial estate having plot area 928.79 smt. and construction is 543.48 smt. [880.23 smt as per AMC].

Place of the property

Plot No. 173, Gujarat Vepari Mahamandal Estate, Odhav, Ahmedabad.

Survey / Ward / Plot No. of Land

F.P. No. 15/18/35, T.P.3, Odhav, Ahmedabad.

Ten. No. 0429-31-0326-0002-K.

Is the property situated in residential / commercial / mixed area / industrial area?

Industrial Area.

Classification of locality high class / middle class / poor class

Medium Class.

Proximity to civic amenities like schools, hospitals, offices, market cinema.

All Civic amenities like school, hospitals are very close.

Means and Proximity to surface communication

Very Good Road network. Public Bus Transport and BRT is close away. SH and Ring Road is closerby.

Area of land supported by documentary proof shape dimensions and physical features.

As per AMC record.

Roads, Streets or Lane on which the land abutting?

North: By Sub Plot No. 131

South: By Road

East: By Sub Plot No. 131

West: By Road

Is it freehold or leasehold land?

It is Freehold Land.

Does the land fall in an area included in any town planning scheme or any development plan of Government or any statutory body? If so, give particulars.

The area is under Ahmedabad Municipal Corporation.

Furnish technical details of the building on a separate sheet [The annexure to this form may be used.]

Submitted

Is the building is owner occupied/ tenanted / both?

A. If partly owner occupied specification and extent of area under owner occupation

Yes, Owner Occupied.

What is the floor space index permissible and percentage actually utilized

As per AMC byelows.

Are any of the occupants related to or close

No.

Give instances of sales immovable property on locality on separate sheet, indicating the name and address of the property, registration no, sale price and area of land sold.

The land in near surround has sellable market rate is Appx. Rs. 25000/- per smt.

Land rate adopted in this valuation

As land rate from market rate and cons. Cost as per prevailing cost.

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

The land with new tenure, so the valuation as whole make up by composite details and date.

Year of commencement of construction and year of completion

Commencement: Renovation is on.

Completion: Till continue.

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

Contractor employing.

For items of work done on contract produce copy of agreements.

As per Market Rates.

For items done by engaging labour directly, give basic rates of materials and labour supported by documentary proof.

As per Market Rates.

The Effect and impact to the valuation of premises:

· The location size-shape-area-ratio of frontage to depth.

The surrounding development of area, facilities of civic amenities for surface communication.

The prevailing market rate of surrounding area, sales in vicinity.

The physical characteristic, extent of construction work, permissible and restriction on development etc.

The expected future development.

PART – II

A. Land: Plot Area = 928.79 smt. X 25000/- Rs. Per smt. = Rs. 23.220 Millions

B. Construction:

Sr. No.	Particulars	Area in Smt.	Rate / Smt.	Rs. in Millions
1	Shed No. 173, Two Storey – main building + one store + servent rooms and toilet block.	880.23	22000/-	19.365
Less: Depreciation @ 10.00 % [Overall]				1.936
Total after depreciation:				17.429

Total Value : A+B

Rs. 40.648 Millions

1. Present market value	Rs. 40.648 Millions
2. Realizable market value	Rs. 34.551 Millions
3. Distress Sale Value	Rs. 29.368 Millions

TECHNICAL DETAILS

Plot No. 173, GVMM Estate, Odhav, Ahmedabad.

No of floors and its height of building

Two story construction.

The total height is 9.40 mtrs.

Type of construction

BM wall structure with ROC column, beam and slab and roof with MS Structure and Corrugated Sheets.

Quality of construction

Good.

Appearance of the building

Good by Elevation.

Wall:

a. Foundation of Plinth

b. Super Structures

c. Partition

R.C.C. footings/ Raft Foundations.

R.C.C. Columns and flat Slab.

BM walls.

Doors

Internal MS panel Doors with Ms Steel gates at compound.

Windows

Ms EZ Sec. windows with grills.

Flooring

Industrial IPS/ Stone flooring.

Finishing

Sand Face plaster and acrylic paints

Roofing and terracing

MS structure and corr. Sheets as roofing.

Water supply arrangement

AMC + Society Tubewell.

Electric wiring and Data Cable

Concealed and Under Ground with pipe line duct.

Year of construction

Built earlier in 1970s, but total renovation is still continue.

The quality and condition of the construction is good.

Age of building

05 Years [Average]

Future life of building

Appx. 55 Years from the report date.

T.P. Scheme No. 43[Final]

ODHAV [3]

Zone	Rate of Developed Land [Rs. per Sq. Mt.]	Rate of Land + Construction [Rs. per Sq. Mt.]			Rate of Open Land of Industries [Rs. per Sq. Mt.]	Rate of Agricultural Land [Rs. per Sq. Mt.]
		Residential	Office	Shop
43/1	4500	5500	8000	15000	3500	3500

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

PROJECT REPORT

HISTORY:

Chandresh Metal is a partnership firm consisting of two partners i.e. Mr. Chandrapal Jabbarsingh Parmar (PAN : CHTPP0497G) and Mr. Mahendrasingh Gajesingh Rajput (PAN BFWPR5148L).

The firm has been established with a view to run a Cold Rolling mill on 23-07- 2013.

Mr. Chandrapal J Parmar is studying in Metallurgy Engineering. He is an investing partner.

Mr. Mahendrasingh Gajesingh Rajput is a Commerce Graduate and previously was working with Mahalaxmi Metal Udyog as a Production supervisor. He has more than three years’ experience of manufacturing process of this line of business.

LAND AND BUILDING:

The proposed factory will be situated at Plot No. 173, Gujarat Vepari Maha Mandal Estate admeasuring about 928.79 Sq. Mtrs. of Land and 543.48 sq. mtrs. of building constructed thereon which owned by Mr. Chandrapal Jabarsingh Parmar.

PLANT AND MACHINERY:

The firm proposes to install three cold rolling mills and other ancillary machineries at a cost of Rs. 6.870 Millions. Major machineries are installed at the factory sight till this date.

ELECTRICITY:

The firm requires around 90 KW power. The firm has paid deposit of Rs.0.305 Million for power connection to UGVCL. A Sanction letter of power from UGVCL is enclosed herewith.

GAS:

The firm has also made an arrangement for PNG as a Fuel for its furnace of around 30 CMT per hour. Accordingly firm has made an application to Adani Gas Limited and the connection procedure is in process. For which the firm has to provide Bank Guarantee for One Month's consumption.

WATER:

The factory building is situated in Gujarat Vepari Maha Mandal Audhyogik Vashahat which is providing the water required for washing and domestic Purpose.

MAN POWER:

The factory is situated in an industrial hub of Ahmedabad and more particularly in Odhav area where in all type of Stainless Steel Manufacturers are having their factories. Since the unit is situated in industrial area the firm will not face the problem of skilled and unskilled workers. The firm proposes to employee around 38workers for its production process.

RAW MATERIAL:

The main raw material required for this industry is SS Flat which is easily available from Induction furnaces installed all around. Ahmedabad and in various parts of Gujarat. More over the Jindal Steels Limited a major Steel giant manufacturer of SS Flat has also established its sales depot in Odhav Area. Therefore the firm will not face the problem of raw material procurement.

MANUFACTURING PROCESS:

First of all SS flat purchased is converted in to hot rolled patta. The same will be outsourced. The approximate cost of such conversion will be around Rs.3-4 per Kg. There are about 4 to 5 hot rolled mills in GVMM estate and other are also situated in Odhav. So there will not be any problem in converting the SS flat in to Hot rolled Patta. The hot rolled pattas are heated in furnace installed at the factory through PNG Gas at about 130 degree. Then the same are passed through three stages through three mills installed. The same are also passed through plate straightening machine to make them straight. At the last the same are cut into various sizes by plate shearing and cutting machine installed.

After cutting the same in to required sizes the plates are first washed with Acid. After washing the matt the same are ready for dispatch.

The used acid are diluted in filter press with Caustic Lime which will be supplied to dumping sight cleared by GPCB.

MARKETTING ARRANGEMENT:

The Firm will manufactured cold rolled SS Patta which is mainly used in manufacturing of various type of SS Utensils. There are number of SS Utensils manufacturers in Odhav and surrounding area. Odhav is said to be hub for SS Utensil manufacturers and one of the major utensils suppliers all over India. Further two uncles of one of the promoters are also having utensils manufacturing unit in GVMM and Kathwada GIDC Estate viz. Mahalaxmi Steel Industries and Million Industries. Further father of Mr. Chandrpal Parmar is a renowned dealer and big name in Stainless Steel Bazar of Gujarat. He will also help the firm in marketing of the SS cold Patta.

STATUTORY LICENCES:

The firm has obtained following statutory clearances:

1) From Gujarat Pollution Control Board vide Letter No. GPCB/ ABD/ CCA-249/ ID 43387\ 2212-812 dated 08.05.2014 for Consent to establish.

2) From District Industries Centre being Acknowledgement EM Part-II vide No: EM2 24 007 12 060312 dated 5.10.2013 for 200 MT Capacity.

3) PAN No: AAIFC9028N

4) VAT Registration No: 24075108190 dated 23-10-2013

5) CST Registration No:: 24575108190 dated 23-10-2013

6) Power Quotation from UGVCL for 90 KW Power

7) Letter from Adani Gas Limited for Supply of 30 Ltr/Hr Gas

REPAYMENT SCHEDULE:

The term loan will be repaid over a period of 7 years with initial moratorium of 3 months.

WORKING CAPITLA REQUIREMENT:

The firm will require around Rs.7.500 Millions as Working Capital on the basis of second full year of production.

The holding period for working capital requirement is assumed as under:

Raw Material: Around 7 days of raw material is projected. Since firm has to convert the SS Flat in to hot rolled patta which will take around 2 days, projection of 7 days of holding is considered.

Looking to the manufacturing process, the firm has projected 3 days stock of work in process.

Looking to the present market situation and trend the firm has projected 1.50 months credit period to buyer.

Firm has also projected credit period of 1.25 months for payment to creditors for supply of raw material.

Firm has also calculated 25% Margin on net Working Capital Gap. However on turnover method the working capital limit works out to around Rs.28.000 Millions against which we request for working capital of Rs.7.500 Millions. Firm also request to consider the inter firm debtors while allowing drawing limit of debtors within 90 days with 25% Margin.

BANK GUARANTEE:

The firm request the bank to provide bank guarantee of Rs.15.00 to Adani Energy Limited in lieu of Security Deposit for supply of gas to Firm with 25% Cash Margin.

SECURITY:

For Term Loan:

Hypothecation of Plant and Machineries and all movable assets of the firm purchased under the scheme having approximate cost of Rs.7.700 Millions.

Form Working Capital:

Hypothecation of stock of raw material, stock in process and Book Debts.

The same will be further secured by Extension of charge over Plant and Machineries.

COLLATERAL SECURITY:

The firm will provide Collateral security by way of Equitable Mortgage of - Factory building owned by Mr. Chandrapal J Parmar situated at 173 GVMM Estate, Odhav, Ahmedabad having approximate market value of Rs.20.000 Millions.

REIMBURSEMENT:

Firm also request for reimbursement in case of payment made to machinery suppliers.

ASSUMPTION:

1) Production capacity has been taken at Rs.200 MT per Month. In the first year it is assumed that the factory will work for 180 days and thereafter 300 days a year.

2) In the first year production capacity utilization is estimated at 60%, 65% in Second year and 70% in third and fourth year and 75% thereafter.

3) Raw Material price is taken at Rs.72 per Kg. and Calculated considering l% Burning Loss for Hot and Cold rolling Process.

4) Sales price is calculated at Rs.95 per Kg. and is inclusive of Excise Duty.

5) Excise duty is payable under composite scheme @ Rs.40000 per mill per month and accordingly calculated at Rs.0.125 Million per month.

6) Electricity charges are calculated on the basis of 22 years of working considering 0.8 as Power factor and Rs.7 per Unit at prevailing market rate.

7) Pipe Line Gas Charges is calculated at 30 Ltrs. per hour and 660 Ltrs. per day at a cost of Rs.51.75 inclusive of VAT.

8) Other Manufacturing charges of Rs. 3 per kg is considered for Hot Rolling Charges.

9) Pollution charges of Rs.2 per kg is considered for Acid Wash and Lime cost and cost of transport of slug removal and dumping of slug to notified site by GPCB.

10) Working capital interest is considered at 13.5% on average balance of two years.

11) Term Loan is repayable over a period of 7 years with four months moratorium. It is assumed that interest will be paid on quarterly basis and on daily rest basis.

12) Depreciation for first year is calculated @ 50% at the rates prescribed under the Income Tax Act at the prevailing rate.

13) It is assumed that working partner will allowed salary as allowable deduction and is calculated at Rs.0.200 Million for first year and Rs. 0.300 Million for further years.

14) Tax is calculated at the prevailing rate of 30%f for partnership firm.

15) Replacement cost of roller is considered after deducting sales price of Scrap of roIler.

16) Other Income shown is Interest of Margin of Bank Deposit for Bank Guarantee and Interest from UGVCL.

17) Other Fixed Deposit represents 25% Margin for Bank Guarantee of Rs. 1.500 Millions.

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TRADE REFERENCES

· Marudhar Metal Rolling Mills

Address: 360 GVMN Estate, Odhav, Ahmedabad, Gujarat, India

Contact Person: Mr. Ashwin Kothari

· Bhavna Steel

65 VK Estate, Odhav, Ahmedabad, Gujarat, India

· S R Industries

126, GVMN Estate, Odhav, Ahmedabad, Gujarat, 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 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 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. 61.06
UK Pound	1	Rs. 101.84
Euro	1	Rs. 81.56

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	RAS
Report Prepared by :	BVA

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.